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HomeMy WebLinkAbout2014-01-07 Item 9 Attachment Comprehensive Annual F 0 0 inancial Report for the year ended June 30 2013 1 1 Y 'I • � ' rr 1 ' I + y7I Ord Ph PAINff T Ij -•' " 1 Pit •1 r Iy E ep —Tilill, 'fir- # y ��. 1 _ in - R 4L f } it t L l i 1 j ti kL •1 3 L• L ,rf � CITY OF i CHULA V1C a l i f o r n a �\il� cmr of HULA VISTA State of California Comprehensive Annual Financial Report For The Fiscal Year Ended June 30, 2013 Mayor Cheryl Cox City Council Rudy Ramirez Patricia Aguilar Compiled under the direction of Pamela Bensoussan Mary Salas Maria Kachadoorian Director of Finance/Treasurer City Manager Jim Sandoval City of Chula Vista Comprehensive Annual Financial Report For the year ended June 30, 2013 TABLE OF CONTENTS Pate INTRODUCTORY SECTION Tableof Contents .........................................................................................................................................................i Letterof Transmittal.....................................................................................................................................................v PrincipalOfficials.........................................................................................................................................................ix OrganizationChart.......................................................................................................................................................x Certificate of Achievement for Excellence in Financial Reporting - GFOA...............................................................xi FINANCIAL SECTION IndependentAuditors' Report..................................................................................................................................1 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........................................5 Management's Discussion and Analysis (Required Supplementary Information)..............................................7 Basic Financial Statements: Government-Wide Financial Statements: Statementof Net Position................................................................................................................................24 Statement of Activities and Changes in Net Position......................................................................................26 Fund Financial Statements: Governmental Fund Financial Statements: BalanceSheet............................................................................................................................................32 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position.............................................................................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 Position............................................................................38 Proprietary Fund Financial Statements: Statementof Net Position.........................................................................................................................40 Statement of Revenues,Expenses and Changes in Net Position..............................................................41 Statementof Cash Flows..........................................................................................................................42 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position.........................................................................................................44 Statement of Changes in Fiduciary Net Position......................................................................................45 Notes to Basic Financial Statements...................................................................................................................47 i City of Chula Vista Comprehensive Annual Financial Report For the year ended June 30, 2013 TABLE OF CONTENTS (Continued) Pate FINANCIAL SECTION (Continued): Required Supplementary Information: BudgetaryInformation...........................................................................................................................................95 Budgetary Comparison Schedules: GeneralFund...................................................................................................................................................96 SundryGrants Special Revenue Fund.............................................................................................................97 Low&Moderate Income Housing Successor Special Revenue Fund............................................................98 Schedules of Funding Progress: PERS ...............................................................................................................................................................99 OtherPost Employment Benefits....................................................................................................................99 Supplementary Information: Non-Major Governmental Funds: CombiningBalance Sheet...............................................................................................................................104 Combining Statement of Revenues, Expenditures and Changes in Fund Balances........................................108 Statement of Revenues,Expenditures and Changes in Fund Balances—Budget and Actual: Transportation Grants Special Revenue Fund..........................................................................................112 Parking Meter Special Revenue Fund.......................................................................................................113 Traffic Safety Special Revenue Fund.......................................................................................................114 Town Centre I Special Revenue Fund......................................................................................................115 Open Space Districts Special Revenue Fund............................................................................................116 Housing Programs Special Revenue Fund................................................................................................117 Traffic Signals Special Revenue Fund......................................................................................................118 Transportation Sales Tax Special Revenue Fund.....................................................................................119 Storm Drain Special Revenue Fund..........................................................................................................120 Housing Authority Special Revenue Fund...............................................................................................121 Mobilehome Admin Fee Fund..................................................................................................................122 Public Financing Authority Debt Service Fund........................................................................................123 Notes Payable Debt Service Fund.............................................................................................................124 Lease Payable Debt Service Fund.............................................................................................................125 Non-Major Enterprise Funds: Combining Statement of Net Position.............................................................................................................128 Combining Statement of Activities and Changes in Net Position...................................................................129 Combining Statement of Cash Flows..............................................................................................................130 ii City of Chula Vista Comprehensive Annual Financial Report For the year ended June 30, 2013 TABLE OF CONTENTS (Continued) Page FINANCIAL SECTION(Continued): Supplementary Information (Continued): Internal Service Funds: Combining Statement of Net Position.............................................................................................................132 Combining Statement of Activities and Changes in Net Position...................................................................133 Combining Statement of Cash Flows..............................................................................................................134 Fiduciary Funds: Statement of Changes in Assets and Liabilities ..............................................................................................136 STATISTICAL SECTION Index.............................................................................................................................................................................13 7 Financial Trends: Net Assets by Component—Last Ten Fiscal Years...............................................................................................138 Changes in Net Position—Last Ten Fiscal Years..................................................................................................139 Fund Balances of Governmental Funds—Last Ten Fiscal Years..........................................................................141 Changes in Fund Balance of Governmental Fund—Last Ten Fiscal Years..........................................................142 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property—Last Ten Fiscal Years.................................143 Direct and Overlapping Property Tax Rates—Last Ten Fiscal Year.....................................................................144 Principal Property Taxpayers—Current and Nine Years Ago...............................................................................145 Property Tax Levies and Collections—Last Ten Fiscal Years..............................................................................146 Debt Capacity: Ratios of Outstanding Debt by Type—Last Ten Fiscal Years...............................................................................147 Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years..................................................................148 Directand Overlapping Debt.................................................................................................................................149 Legal Debt Margin—Last Ten Fiscal Years..........................................................................................................150 Pledged-Revenue Coverage—Last Ten Fiscal Years............................................................................................151 Demographic and Economic Information: Demographic and Economic Statistics—Last Ten Calendar Years.......................................................................152 Principal Employers—Current and Nine Years Ago.............................................................................................153 Operating Information: Full-Time and Part-Time City Employees by Function—Last Ten Fiscal Years..................................................154 Operating Indicators by Function—Last Ten Fiscal Years ...................................................................................155 Capital Assets Statistics by Function—Last Ten Fiscal Years..............................................................................156 iii C17rY C)F I ISTA iv CITY OF • Finance Department CH U LA VI STA December 20, 2013 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, 2013 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. 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 Chula Vista Public Financing Authority, the Chula Vista Industrial Development Authority and the Chula Vista Housing Authority. V 276 Fourth Avenue, Chula Vista, CA 91910 I www.chulavistaca.gov I (619) 691-5250 ( fax (619) 585-5685 I 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 $69,304. The City of Chula Vista, with a population of approximately 251,613, 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. During fiscal year 2013, 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 due to increases in the City's CAPERS rates. 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 Tenn 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 vi 276 Fourth Avenue, Chula Vista, CA 91910 I www.chulavistaca.gov I (619) 691-5250 I fax (619) 585-5685 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 level of fiscal control. 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 of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Vista for its Comprehensive Annual Financial Report for the year ended June 30, 2012. This was the 13tH consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year 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 vii 276 Fourth Avenue, Chula Vista, CA 91910 www.chulavistaca.gov I (619) 691-5250 fax (619) 585-5685 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, T .. Maria I achadoorian Director of Finance/Treasurer i i viii i 276 Fourth Avenue, Chula Vista, CA 91910 I www.chulavistaca.gov I (619) 691-5250 I fax (619) 585-5685 City of Chula Vista List of City Officials June 30, 2013 City Council Cheryl Cox Mayor Pamela Bensoussan Deputy Mayor Patricia Aguilar Councilmember Rudy Ramirez Councilmember Mary Salas Councilmember Administration James Sandoval City Manager Gary Halbert Assistant City Manager Kelley Bacon Deputy City Manager/Director of Human Resources & information Technology Services Glen Goggins City Attorney Donna Norris City Clerk Department Heads David Bejarano Chief of Police Kelly Broughton 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 ix CITY OF CHULA VISTA ORGANIZATION CHART CITIZENS OF CHULA VISTA 01 Citizen Advisory Mayor Citizen Advisory Commissions City Council Boards City Manager City Attorney City Clerk Assistant City Assistant City Manager Manager 01 01 01 01 Police Human Library Planning & Resources Building 01 01 Fire Information & Recreation Development Technology Svcs Services 01 01 01 Administration Public Works Animal Care Housing Facility Authority Successor Agency to the Redevelopment Agency Finance X Government Finance Officers Association Certificate of Achievement for Excellence in 46 Financial Reporting Presented to City of Chula Vista California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2012 0,e Fe* Executive Director/CEO Xi 6265 Greenwich Drive Suite 220 Flo* iM San Diego, California 92122 PUN McEAD 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 Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California (the "City"), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. To the Honorable Mayor and Members of the City Council of the City of Chula Vista Chula Vista, California Page 2 Opinions In our opinion, the financial statements referred to previously 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, 2013,and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management's Discussion and Analysis, Budgetary Comparison Schedules, and Schedules of Funding Progress on pages 7 through 20 and 93 through 99 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. Other Information 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 Budgetary Comparison Schedules, 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 Nonmaj or Fund Financial Statements and 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. Such 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 Nonmaj or Fund Financial Statements and Budgetary Comparison Schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly,we do not express an opinion or provide any assurance on them. 2 To the Honorable Mayor and Members of the City Council of the City of Chula Vista Chula Vista, California Page 3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 20, 2013, 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 the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compliance. I e &LP U0 San Diego, California December 20, 2013 3 This page intentionally left blank. 4 6265 Greenwich Drive Suite 220 San Diego, California 92122 PUN & McGEADY Phone: (858) 242-5100 Fax: (858) 242-5150 www.pm-llp.com 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 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, in accordance with the 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, the financial statements of the governmental activities, the business- type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California (the "City"), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated December 20, 2013. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting ("internal control") to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control. 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 and correct, misstatements on a timely basis. A material weakness is a deficiency, or a 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. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. To the Honorable Mayor and Members of the City Council of the City of Chula Vista Chula Vista, California Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. I U0 San Diego, California December 20, 2013 6 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2013 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, 2013. 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, 2013 by $988.3 million (net assets). Of this amount, $205.8 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 position is $22.3 million higher for governmental activities than last fiscal year, an increase of 25.4%. For business type activities, unrestricted net position is $6.9 million higher than the previous year, an 8%increase. 3. The City's total net position decreased by $6.2 million in fiscal year 2013. Net assets of governmental activities decreased by $7.5 million,while net assets of the business type activities increased by $1.3 million. 4. The City's governmental funds reported combined ending fund balances of $122.2 million, an increase of $4.5 million. 5. Total citywide liabilities increased by $5.5 million. Liabilities for governmental activities increased by $4.5 million and business-type activities increased by $1.0 million. 6. The City's total long-term debt obligations had a net decrease of$2.9 million or 2.0% during fiscal year 2013. The decrease is composed of principal reductions ($5.1 million) and a City issued notes payable of$2.2 million for an energy conservation project financed through the Bank of America. 7. The unassigned fund balance of the General Fund on June 30, 2013 was $10.8 million or 8.8 percent of fiscal year 2012-13 General Fund expenditures (excluding other financing uses). 8. 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 $4.1 million reduction in UUT revenues that were received but not recognized in fiscal year 2012-13. 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. 7 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to private-sector business. They are comprised of the Statement of Net Position and Statement of Activities and Changes in Net Position. The Statement of Net Position presents information on all of the City's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position 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 Position presents information showing how the government's net position changed during the fiscal year. All changes in net position 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. 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 finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds,proprietary funds, and fiduciary funds. The fund financial statements provide detailed information about each of the City's most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually,with all Non-major Funds summarized and presented in a single column. Governmental Funds — Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financial capacity. 8 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement. The City has thirty-two governmental funds, of which seven are considered major funds for presentation purposes. Each major fund is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance. 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, Development Services and Transit activities. Internal service funds are used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for its fleet of vehicles and its information systems and equipment replacement program. Because these services predominantly benefit governmental rather than business- type functions,they have been included within governmental activities in the governmental-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements. Fiduciary Funds — Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information providing a budgetary comparison statement for the general fund and sewer fund. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Position As noted earlier, net position 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 position(government and business type activities)totaled$988.3 million at the close of the fiscal year ending June 30, 2013. This is a decrease of$6.2 million when compared to the prior year. All of the decrease occurred in the City's governmental funds ($7.5 million) and was offset by a $1.3 million increase in business-type activities. On the following page is a summary schedule showing the components that make up the City's net position at June 30, 2013 and 2012. 9 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 C ity of C h u la Vista Net Position Fiscal Year Ending June 30 Governmental Activities Business-Type Activities Total 2013 2012 2013 2012 2013 2012 Current Assets $ 167,732,385 $ 158,958,705 $ 80,712,296 $ 73,026,060 $ 248,444,681 $ 231,984,765 Non-Current Assets 43,146,245 41,033,397 14,516,516 14,293,954 57,662,761 55,327,351 Capital Assets 769,034,178 782,926,138 134,661,254 140,248,319 903,695,432 923,174,457 Tota I Assets 979,912,808 982,918,240 229,890,066 227,568,333 1,209,802,874 1,210,486,573 Current Liabilities 45,493,875 38,804,245 176787341 6037803 47,172,216 39,408,048 Non-Current Liabilities 174,167,681 176,380,958 1487726 1947884 174,316,407 176,575,842 Total Liabilities 219,661,556 215,185,203 178277067 7987687 221,488,623 215,983,890 Net Position Net Investment in Capital Assets 626,476,481 655,182,727 134,661,254 140,249,380 761,137,735 795,432,107 Restricted 21,888,309 22,929,586 - - 21,888,309 22,929,586 Unrestricted 111,886,462 89,620,724 93,401,745 86,520,266 205,288,207 176,140,990 Total Net Position $ 760,251,252 $ 767,733,037 $228,062,999 $226,769,646 $ 988,314,251 $ 994,502,683 As the table shows, an amount of $761.1 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 ($21.9 million or 2.2%) and represent resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets of$205.3 million may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the 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. Changes in Net Position The statement of net position 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 and Changes in Net Position. This statement provides the reader with information regarding the revenues, expenses and changes in net position over the fiscal year. Generally, all changes to the City's net position from one fiscal year to the next flow through the Statement of Activities. The City's net position has decreased by $6.2 million or 0.6%, from the prior fiscal year. The net position of governmental activities has decreased by $7.5 million, while the net position of the business type activities increased by $1.3 million. 10 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 309 2013 City of Chula Vista Summary of Changes in Net Position Fiscal Year Ending June 30 Governmental Activities Business-Type Activities Total 2013 2012 2013 2012 2013 2012 Revenues: Program Revenues: Charges for Services 59,746,716 51,273,789 $ 45,152,163 $ 39,591,997 $ 104,898,879 $ 90,865,786 Operating Grants&Contributions 30,935,863 21,780,868 3,095,626 3,524,426 34,031,489 25,305,294 Capital Grants&Contributions 2,936,133 4,283,855 - - 2,936,133 4,283,855 General Revenues: Property Taxes 45,146,022 49,721,604 45,146,022 49,721,604 Sales Taxes 28,627,785 27,275,753 28,627,785 27,275,753 Franchise Taxes 9,266,768 8,400,178 9,266,768 8,400,178 Utility User Taxes 4,428,794 3,465,136 4,428,794 3,465,136 Business License Taxes 1,260,622 1,169,307 1,260,622 1,169,307 Transient Occupancy Taxes 2,471,252 2,295,675 2,471,252 2,295,675 Property Transfer Taxes 1,125,252 779,981 1,125,252 779,981 Construction Taxes 413,552 321,252 413,552 321,252 Investment Earnings 866,861 3,615,266 261,354 1,273,689 1,128,215 4,888,955 Miscellaneous 2,034,895 1,530,568 340,888 2,326,442 2,375,783 3,857,010 Transfer from Successor Agency 239,320 - 239,320 - Gain(Loss)Disposal of Capital Assets 82,587 - 9,021 10,905 91,608 10,905 Total Revenues 189,582,422 175,913,233 48,859,052 46,727,459 238,441,474 222,640,692 Expenses General Government $ 33,652,891 $ 22,508,977 $ 33,652,891 22,508,977 Public Safety 77,821,520 75,931,086 77,821,520 75,931,086 Public Works 69,297,402 76,458,061 69,297,402 76,458,061 Parks and Recreation 5,865,192 7,310,312 5,865,192 7,310,312 Library 4,224,568 4,185,624 4,224,568 4,185,624 Transit 14,560 63,021 14,560 63,021 Interest on Long-Term Debt 6,698,509 8,904,275 6,698,509 8,904,275 Sewer Funds 30,773,712 30,524,851 30,773,712 30,524,851 Transit 6,997,488 7,050,673 6,997,488 7,050,673 Bayfront Trolley Statioin 92,843 91,942 92,843 91,942 Sewer DIFs 122,927 129,351 122,927 129,351 Development Services Fund 5,717,312 4,730,599 5,717,312 4,730,599 Total Expenses 197,574,642 195,361,356 43,704,282 42,527,416 241,278,924 237,888,772 Increase/(Decrease)in Net Position Before Transfers (7,992,220) (19,448,123) 5,154,770 4,200,043 (2,837,450) (15,248,080) Transfers 3,861,417 4,195,190 (3,861,417) (4,195,190) - - Extraordinary Gain(Loss) - 28,677,153 - 28,677,153 Change in Net Position (4,130,803) 13,424,220 1,293,353 4,853 (2,837,450) 13,429,073 Net Position,Beginning of Year-Restated 764,382,055 754,308,817 226,769,646 226,764,793 991,151,701 981,073,610 Net Position, End of Year $ 760,251,252 $ 767,733,037 $ 228,062,999 $ 226,769,646 $ 988,314,251 $ 994,502,683 Further analysis is provided within the governmental and business-type activity sections below. Governmental Activities Governmental activities decreased the City's net position by $7.5 million thereby accounting for all of the City's decrease in net position. The City received a total of$93.6 million in Program Revenues for the year an increase of $16.3 million from the previous year. A comparison of the cost of services by function for the City's governmental activities is shown in the table below, along with the program revenues used to cover the net expenses of the governmental activities. A discussion of Program Revenues follows. 11 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Expenses and Program Revenues Governmental Activities 0 0 $80 $70 0 0 0 $ 0 $ 0 10 S- en ral Parks and Public Safety Library Public Works Government Recreation MExpendkures NPrograrn Revenues Total program revenues from governmental activities were $93.4 million in fiscal year 2012-13. 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. Charges for Services had a net increase of $8.5 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$160,012 when compared to the prior year. It was status quo for this component of Charges for Service. The explanation is there were minor increases and decreases for staff time reimbursements. The biggest decrease was the loss of $222,470 of reimbursements from the former Redevelopment Agency. • Public Safety had a modest increase of$235,052 million when compared to the prior year. There were minor increases in State Grants ($0.1 million), reimbursements from the Port District ($0.2 million) and Reimbursement from Other Agencies (($0.1 million) for the use of the City's jail. The primary decrease in revenues was for reimbursements from the Judge and HIDTA task forces ($0.2 million). • Public Works had an increase of$3.0 million from the prior year. The major factors for the increase are due to increased building permit activity and collection of development impact fees for the Transportation Fee ($1.2 million), Corporation Yard fee ($0.2 million) and Traffic Signal Fee ($0.1 million). There were higher tax levies for the City's open space districts ($0.5 million) and an increase in reimbursements for staff time ($0.5 million). • Parks and Recreation had an increase of $4.6 million from the prior year due to increased building permit activity in the City that resulted in higher collections of development impact fees for the Park Acquisition and Development fee ($3.9 million) and Recreation component ($0.5 million) of the Public Facilities fee. In addition, there was higher recreation fees ($0.2 million) collected during the year. • Library activities resulted in an increase of$0.8 million from the prior year due to increased building permit activity in the City that resulted in higher collections of development impact fees for the Library component ($0.8 million) of the Public Facilities Development Impact Fee fund. 12 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Operating Grants and Contributions for governmental activities showed an increase of$9.2 million from the previous fiscal year. The material items that make up most of the change are as follows. • General Government had increased revenues of $0.6 million over the prior year. Half of the increase is accounted for by two new grants that the city received — Be the Change ($40,000) and San Diego Neighborhood Reinvestment ($258,000) and the other half coming in the area of Community Development Block Grant money ($0.3 million). • Public Safety decreased by $0.7 million from the prior year. The biggest single reduction when compared to the prior fiscal year was in the grant monies received from the American Recovery and Reinvestment Act (ARRA) ($1.8 million) in fiscal year 2012. The ARRA program was terminated by the federal government in fiscal year 2012. The reduction in ARRA funds was offset by an increase in other Federal and State grants ($0.6 million), an increase in Asset Seizure Funds ($0.2 million) and contributions from American Medical Response to support Basic/Advanced Life Support programs in the Fire Department($0.2 million). • Public Works category increased by $9.1 million when compared to the prior year. The largest increase in this category was related to the San Diego County Transportation Sales Tax which adds 0.25%to the sales tax rate and is to be used for transportation projects ($3.3 million). The next largest increase was in the Gas Tax funds ($2.1 million) that are used for road improvement and maintenance. The City issued a Qualified Energy Conservation Bond during the year for a streetlight retrofit that replaced bulbs with longer-life LED bulbs ($2.2 million). The City received increased state and federal grant funding for energy and conservation projects ($1.0 million). • Parks and Recreation category saw an increase of $0.2 million from the previous fiscal year. All of the increase is provided by various donations received from community groups, CDBG funded activities and local grants for learn-to-swim programs. • Library category showed a decrease of$3,141 in this category. The Library received $90,827 in this category which was for donations. Prior year revenues were $93,968. Capital Grants and Contributions for governmental activities had a decrease of$1.3 million. The major components of this change are discussed below. • General Government had reduced revenues of$14,367 when compared to the prior year. • Public Safety realized $0.1 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 all of the decrease in Capital Grants and Contributions. This component had a decrease in revenues of$1.8 million. The State ceased funding for the Proposition 42 Traffic Congestion Relief program ($1.0 million) and the Proposition 1 B Highway funds ($1.4 million). The City expended all of its grant funds in the previous fiscal year that was used for bike paths ($0.1 million) and did not receive any funds for this activity in fiscal year 2013. 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 $96.4 million in fiscal year 2012-13. The largest percentage of general revenues received during the year for governmental activities were taxes of$93.2 million,which included Property Taxes of$45.1 million and Sales Taxes of$28.6 million. The City's General Revenues decreased as a whole by $2.7 million when compared to the prior fiscal year. Despite the overall decrease in General Revenues there is good news in the details. As seen in the chart below, most of the discretionary revenues saw increases indicating that the City is continuing in its recovery from the recession and housing crisis. 13 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 General Revenues as of June 30 Increase/ 2013 2012 (Decrease) Property Taxes 45,146,022 49,721,604 (4,575,582) Sales Taxes 28,627,785 27,275,753 173527032 Franchise Taxes 972667768 874007178 8667590 Utility User Taxes 474287794 374657136 9637658 Business License Taxes 172607622 1,169,307 917315 Transient Occupancy Taxes 274717252 272957675 1757577 Property Transfer Taxes 1,125,252 7797891 3457361 Construction Taxes 4137552 3217252 927300 Investment Earnings 8667861 376157266 (2,748,405) Transfer from Successor Agency 2397320 - 2397320 Miscellaneous 270347895 175357331 4997564 Total General Revenues r 95,881,123 F9875797393 (2,698,270) The reductions in property taxes are attributable to the dissolution of the redevelopment agency and receiving only enough property tax to pay for the former redevelopment agency's enforceable obligations. The loss of investment earnings is due to the current low interest environment. In addition, the General Fund was not able to collect on any of the outstanding loans to the former Redevelopment Agency and therefore did not realize interest that it is earning on the outstanding loans. 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 $4.1 million reduction in UUT revenues that were received but not recognized in fiscal year 2012-13. Recognizing this revenue in the future will be contingent upon the outcome of lawsuits related to the Utility User Tax. Total governmental activity type expenses were $197.4 million in fiscal year 2012-13. The largest expenses were incurred for Public Safety,Public Works and General Government. These three activities combined account for 91.5% of all general activity expenses. These expenses do not include capital outlays,which are reflected in the City's capital assets. Governmental Expenses by Activity Parks and Recreation reation 3% Public Safety 40% General Government 17% Library 2% 1 me rest on long-terra Public Works debt 35% 3% 14 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Business Type Activities Net position for business-type activities was $228.1 million, an increase of $1.3 million from the prior fiscal year. Overall expenses for the business-type activities showed a $1.2 million increase over the previous year. The increase is due largely to an increase in staffing for the Development Services Fund ($1.0 million) as building activity in the City continues to increase. The remaining increase is accounted for in Sewer Fund related activities ($248,861) and a drop in expenses for Transit related activities of$53,185. Total program revenues for business-type activities were $48.2 million and are composed of sewer fees ($35.0 million), bus fares ($2.8 million) and development fees (7.3 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 ($3.1 million). Total expenses for the business-type activities were $43.7 million and were for expenses related to Sewer ($30.8 million), Transit Operations ($7.1 million) and processing of development permits and plans ($5.8 million). FUND LEVEL FINANCIAL ANALYSIS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The City uses governmental fund accounting to ensure compliance with budgetary allocations and to maintain control over resources that are legally, or otherwise, restricted for specific purposes. The following is a discussion of the individual"major" funds as shown on the Balance Sheet for Governmental Funds in the basic financial statements. General Fund—The General fund is used to account for the general operations of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. The General Fund is always reported as a "major fund". For the fiscal year, the General Fund reported $121.4 million in revenues and $122.8 million in expenditures, resulting in revenues under expenditures in the amount of$1.4 million. After accounting for net other financing sources of$4.7 million, General Fund fund balance increased by $3.3 million. Total fund balance at June 301 2013 was $28.0 million, composed of$49.1 million in assets combined with $21.2 million in liabilities. Total fund balance included$7.5 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. Restricted fund balance is $0.8 million and represents the portion of fund balance that reflects constraints placed on the use of resources that are externally imposed by creditors, grantors, contributors, or laws or regulations of other governments. Assigned fund balance, totaling $6.6 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 $10.8 million, this is the portion of fund balance that is available for appropriation for any purpose. Unassigned fund balance represents 8.8% of total fiscal year 2012-13 General Fund expenditures. Sundry Grants Fund— The Sundry Grants fund is to account for miscellaneous grants such as: Supplemental Law Enforcement Services, California Library Services Act, Public Library Act, Asset Seizure, Local Law Enforcement Block Grants, federal library grants, waste management and recycling, energy conservation, parks and recreation, social service grants, Gayle McCandless memorial cultural arts, federal assistance, CDBG program income projects, HOME project, and Community Development Block grants. 15 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 The Sundry Grants Fund had total revenues of$13.6 million and expenditures of$16.7 million, resulting in revenues under expenditures in the amount of negative $3.1 million. The Sundry Grants Fund equity decreased by $1.8 million for the fiscal year after accounting for net other financing sources of$1.3 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 2012-13. Total fund balance at June 30, 2013 was $5.1 million composed of nonspendable ($3.0 million) and restricted ($2.1 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 Housing Successor. For the year, this fund had revenues of $1.0 million composed primarily of interest earnings, property rentals and loan repayments from affordable housing projects. Housing expenditure activities totaled$$0.1 million and were primarily for administrative costs that include city staff time reimbursements and a consultant to educate low income families on home ownership. Total fund balance as of June 30, 2013 was $7.9 million composed of nonspendable ($5.6 million) and restricted($2.3 million) fund balance. 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, 2013, this fund had a fund balance of negative $37.0 million. The unassigned fund balance decreased by $0.3 million due to the payment of principal and interest on outstanding loans. Development Impact Fee 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 $9.3 million with $9.6 million attributable to building permit fees. Per GASB 31, the fair market value of investments for this fund had a write down of$350,532 that offset the interest earnings of the fund. Other revenues of$71,902 were for a refund from the State Department of Transportation for a bridge widening project. Expenditures totaled $3.1 million comprised of mostly activity in the Transportation DIF in which $2.7 million was spent on four major projects. The projects are the Otay Lakes Road widening, Willow Street Bridge widening, Heritage Road Bridge reconstruction and Rock Mountain Road overpass. Other expenditures in the Transportation DIF totaling $0.2 million were for transportation planning and traffic calming projects. The Public Facilities DIF had staff time reimbursements of$0.2 million. Total fund balance increased by $2.0 million for the year. At June 30, 2013 this fund had a fund balance totaling $47.1 million, comprised of mostly cash ($36.1 million) and Advances to Other Funds ($10.7 million) and offset by $2.2 million in liabilities of which $1.6 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 $4.3 million with $4.4 million attributable to building permit fees for new development. Per GASB 31, the fair market value of investments for this fund had a write down of$127,984 that offset the interest earnings of the fund. Expenditures totaled $3,616 comprised of staff time reimbursements for city staff. Total fund equity increased by $4.3 million for the year. At June 30, 2013 fund balance totaled $36.2 million, comprised primarily of cash($26.3 million) and Advances to Other Funds ($10.1 million). 16 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Proprietary Funds The City's Sewer Fund is reported as a "major" fund on the Statement of Net Position 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, operating revenues totaled $35.1 million. In addition, non-operating revenues totaling $0.3 million were realized. Non-operating revenues are composed of investment income ($0.3 million) and a gain on sale of assets ($4,272). Operating expenditures totaled $30.8 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 non-operating, net position of the fund increased by $1.8 million for the year, totaling $219.4 million as of June 30, 2013. Of total net position, $131.8 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. Total current assets are $69.5 million comprised of cash and investments ($64.6 million) and accounts receivable of $4.8 million. Fund liabilities at the end of the fiscal year were $549,633 of which $367,969 were considered current liabilities. The fund has no outstanding bonded debt. GENERAL FUND BUDGETARY HIGHLIGHTS The final amended general fund budget totaled $127,867,844 including $4,586,314 in budget amendments to the originally adopted budget and encumbrances of $2,888,185 which will fund contractual obligations and outstanding purchase orders. The General Fund's budget amendments of$4,586,314 are summarized as follows: Budget Amendments Appropriaition Target Donation to the Police Department $ 1,800 California Cool Challenge 5,000 Target Donation for Literacy Programming 2,000 Wal-Mart Donation to the Fire Department 1,000 COPS Hiring Grant Program 174,834 Addition of 1 FTE -Animal Care Assistant 38,686 First Quarter Financial Report Budget Cleanup 7,116 Rotary Club Donation to the Fire Department 825 Fire Station 8 Vehicle Storage 9,750 Additional "Spay Shuttle" Clinics 39,000 Friends of Chula Vista Library Donation 45,000 Purchase and Rental of 610 Bay Boulevard 1,457,600 Capital Improvement Project Closure (19,844) Second Quarter Financial Report Budget Cleanup (44,154) Estate of Charlotte and Ronald Stanley Donation to the Library 10,000 Fire Department Critical Needs Budget Adjustment 250,000 Aquatica Donation for Fun Run 5,000 Advance Life Support Start-Up Costs 665,191 Advance Life Support Start-Up Costs 48,365 Third Quarter Financial Report Budget Cleanup 1,125,000 Kaboom Grant Matching Funds 8,500 FY13 Year-End Budget Clean-up 755,645 Total General Fund Budget Amendments $ 41586,314 17 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 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, 2013, amounts to $914.5 million, net of accumulated depreciation of$464.9 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure and construction in progress. Infrastructure assets are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems and similar items. The total change to the City's investment in capital assets for the current fiscal year was a negative $19.4 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, 2013, the City had $142.6 million in debt outstanding compared to the $145.5 million last year, a 2.0% net decrease. The majority of this debt is in the form of Certificates of Participation($128.4 million) and a CDBG Section 108 Loan ($8.3 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($42.5 million) has been transferred to the redevelopment agency successor agency and are now reported in the fiduciary funds. The City made principal payments of$5.1 million during the fiscal year. During the fiscal year there was a $2.2 million note issued through the Federal government's Qualified Energy Conservation Bond tax credit program to retrofit City Streetlights with LED fixtures. During the fiscal year, the City was upgraded from an "A-" to 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 2012-13 fiscal year was $21,738,959,789. This is a decrease of$154,739,560 or 0.71% under the 2011-12 assessed valuation. It should be noted that assessed value was set as of January 1, 2012. Actual current secured property tax revenues for the fiscal year totaled $25.9 million which is $3.1 million more than collected in the prior year. Due to the dissolution of the redevelopment agency the City received $2.6 million of additional property tax revenues that would have gone to the redevelopment agency prior to its dissolution. Building Activity. The valuation of all building and related permits totaled$296.2 million for the 2012-13 fiscal year. This is approximately 86.8% more than the valuation of$158.5 million for these permit categories in the prior fiscal year. As of June 30 Building Permits 2013 2012 Change Residential $ 226;972;213 $ 121;077;026 $ 105;895;187 87.5% Non-Residential 26,385,454 8,441,941 17,943,513 212.6% Additions & Alterations 42,573,371 26,849,179 15,724,192 58.6% Demolitions 244,984 2,182,111 (1,937,127) -88.8% Tota 1 $ 296,176,022 $ 158,550,257 $ 137,625,765 86.8% 18 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 The increase in building permits activity is a good indicator that the city is recovering from the recession. Local Economy. The USD Burnham-Moores Center for Real Estate's Index of Leading Economic Indicators for San Diego County rose 0.1 percent in June 2013. The gain was led by a big increase in consumer confidence and smaller positive moves in help wanted advertising and building permits. These were nearly counterbalanced by drops in initial claims for unemployment insurance and local stock prices. The four advancing components outweighed the two declining ones to push the USD Index to its tenth straight gain. June's increase was the 18th in 19 months for the USD Index. The outlook remains for solid growth in the local economy through the end of 2013 and into at least the first half of 2014. Average wage and salary job growth in San Diego County in the first half of 2013 was up over 26,000 compared to the first half of 2012. If that pace could be maintained over the second half of the year, it would be the best annual job growth since 2000.1 135 130 125 120 115 110 105 100 95 90 85 00 00 00 (n M 0 0 0 � cu cu rn m nm 0 0 0 0 0 > ago C: � > ° Q Ln � 0 0 2 Q � � z Z � San Diego Index of Leading Economic Indicators July 2013 home prices in San Diego County were up 22.1% 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 $417,500. All of Chula Vista's five zip codes saw increases in the median price of single-family residences according to the report. As most cities and counties across the nation, Chula Vista continues to move forward in its economic recovery. Data for June 2013 Compared to June 2012 91910 North $3027500 $3107000 2.5% 91911 South $2657000 $3207000 20.8% 91913 Eastlake $3127500 $4177500 33.6% 91914 NE $4517000 $6457000 43.0% 91915 SE $3107500 $3797000 22.1% 1 Burnham-Moores Center for Real Estate,University of San Diego http://home.sandiego.edu/—agin/usdlei/index.html 19 CITY OF CHULA VISTA MANAGEMENT'S DISCUSSION AND ANALYSIS (Continued) FOR THE YEAR ENDED JUNE 30, 2013 Fiscal Year 2013-14 Budget. The City ended the 2012-13 fiscal year with unassigned fund balance of$10.8 million. An amount of$2.3 million of committed fund balance composed of the Economic Contingency Reserve. In June 2013, the Chula Vista City Council adopted the 2013-14 annual operating budget which provides $268.8 million in appropriations to fund all City operating activities. The General Fund budget totaled$127.8 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% when compared to the 2011-12 taxable assessed values. 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 91910. 20 BASIC FINANCIAL STATEMENTS 21 OW CITY C)F CHULAVISTA 22 GOVERNMENT-WIDE FINANCIAL STATEMENTS 23 City of Chula Vista Statement of Net Position June 30, 2013 Primary Government Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and investments $ 137,196,063 $ 75,390,406 $ 212,586,469 Receivables: Accounts 1,830,647 5,137,702 6,968,349 Taxes 806,955 - 806,955 Interest 164,910 15,750 18060 Other 189,717 90,850 280,567 Due from other governments 6,161,268 - 6,161,268 Due from Successor Agency 13,293,691 - 13,293,691 Due from agency fund 94,016 - 94,016 Inventories and prepaid items 115,118 77,588 192,706 Total current assets 167,732,385 80,712,296 248,44401 Noncurrent assets: Restricted cash and investments: Held by city 1,018,469 - 1,018,469 Held by fiscal agent 11,498,818 - 11,498,818 Loans receivable 44,936,923 - 44,936,923 Internal balances (14,516,516) 14,516,516 - Deferred charges,net 189,480 - 189,480 Net pension assets 19,071 - 19,071 Non-depreciable capital assets 96,58608 2,195,269 98,782,157 Depreciable capital assets,net 672,447,290 132,465,985 804,913,275 Total noncurrent assets 812,180,423 149,177,770 961,358,193 Total assets 979,91208 229,890,066 1,209,802,874 See accompanying Notes to Basic Financial Statements. 24 City of Chula Vista Statement of Net Position (Continued) June 30, 2013 Primary Government Governmental Business-Type Activities Activities Total LIABILITIES Current liabilities: Accounts payable 5,240,840 206,893 5,447,733 Accrued liabilities 4,555,462 207,718 4,763,180 Interest payable 2,412,730 - 2,412,730 Unearned revenue 11,972,158 877,138 12,849,296 Compensated absences-due within one year 40000 386,592 41386,592 Settlement payable(Note 15) 80000 - 80000 Claims payable-due within one year 40000 - 40000 Long-term debt-due within one year 5,31205 - 5,31205 Total current liabilities 45,493,875 1,678,341 47,172,216 Noncurrent liabilities: Retention payable 497,731 4,565 502,296 Developer deposits 10,479,432 - 10,479,432 Pollution Remediation Obligation 15000 - 15000 Arbitrage liability 7,831 - 7,831 Net OPEB liability 6,02700 - 6,02700 Compensated absences-due in more than one year 2,739,216 144,161 203,377 Claims payable-due in more than one year 17,021,459 - 17,021,459 Long-term debt-due in more than one year 137,245,012 - 137,245,012 Total noncurrent liabilities 174,16701 148,726 174,316,407 Total liabilities 21901,556 1,827,067 221A8,623 Net Position Net investment in capital assets 626,476,481 134,661,254 7611137,735 Restricted: Community development 8,262,381 - 8,262,381 Debt service 10,617,691 - 10,617,691 Capital projects 3,008,237 - 3,008,237 Total restricted 21,888,309 - 21,888,309 Unrestricted 111,886,462 93,401,745 205,288,207 Total Net Position $ 760,251,252 $ 228,062,999 $ 988,314,251 See accompanying Notes to Basic Financial Statements. 25 City of Chula Vista Statement of Activities and Changes in Net Position For the year ended June 30, 2013 Program Revenues Operating Capital Total Charges for Grants and Grants and Program Functions/Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities: General government $ 3316521891 $ 517951838 $ 417861541 $ 511346 $ 1016331725 Public safety 7718211520 818931631 816441384 2801000 1718181015 Public works 6912971402 3517581786 1711881263 213061787 5512531836 Parks and recreation 518651192 716311696 2251848 2981000 811551544 Library 412241568 116661765 901827 - 117571592 Transit 141560 - - - - Interest on long-term debt 616981509 - - - - Total governmental activities 19715741642 5917461716 3019351863 219361133 9316181712 Business-type activities: Sewer 3017731712 3510111268 - - 3510111268 Transit 619971488 218411619 310021783 - 518441402 Bayfront Trolley Station 921843 - 921843 - 921843 Sewer Development Impact Fees 1221927 6451015 - - 6451015 Development Services Fund 517171312 616541261 - - 616541261 Total business-type activities 4317041282 4511521163 310951626 - 4812471789 Total primary government $ 24112781924 $ 10418981879 $ 3410311489 $ 219361133 $ 14118661501 See accompanying Notes to Basic Financial Statements. 26 City of Chula Vista Statement of Activities and Changes in Net Position (Continued) For the year ended June 30, 2013 Net(Expense)Revenue and Changes in Net Position Primary Government Governmental Business-type Functions/Programs Activities Activities Total Primary government: Governmental activities: General government $ (23,019,166) $ - $ (23,019,166) Public safety (60,003,505) - (60,003,505) Public works (14,043,566) - (14,043,566) Parks and recreation 212901352 - 212901352 Library (21466,976) - (21466,976) Transit (14,560) - (14,560) Interest on long-term debt (61698,509) - (61698,509) Total governmental activities (103,955,930) - (103,955,930) Business-type activities: Sewer - 412371556 412371556 Transit - (11153,086) (11153,086) Bayfront Trolley Station - - - Sewer Development Impact Fees - 5221088 5221088 Development Services Fund - 9361949 9361949 Total business-type activities - 415431507 415431507 Total primary government (103,955,930) 415431507 (99,412,423) General revenues: Taxes: Property taxes 4511461022 - 4511461022 Sales taxes 2816271785 - 2816271785 Property transfer taxes 111251252 - 111251252 Franchise taxes 912661768 - 912661768 Utilities user taxes 414281794 - 414281794 Business license taxes 112601622 - 112601622 Transient occupancy taxes 214711252 - 214711252 Construction taxes 4131552 - 4131552 Total taxes 9217401047 - 9217401047 Investment earnings 8661861 2611354 111281215 Miscellaneous 212741215 3401888 216151103 Gain on disposal of capital assets 821587 91021 911608 Transfers 318611417 (31861,417) - Total general revenues and transfers 9918251127 (31250,154) 9615741973 Change in Net Position (41130,803) 112931353 (21837,450) Net Position: Beginning of year,as restated(Note 16) 76413821055 22617691646 991,151,701 End of year $ 76012511252 $ 22810621999 $ 98813141251 See accompanying Notes to Basic Financial Statements. 27 OW CITY C)F CHULAVISTA 28 FUND FINANCIAL STATEMENTS 29 OW CITY C)F CHULAVISTA 30 GOVERNMENTAL FUND FINANCIAL STATEMENTS City of Chula Vista Balance Sheet Governmental Funds June 30, 2013 Major Funds Low&Moderate Income Housing Sundry Grants Successor City General Special Revenue Special Revenue Debt Service Fund Fund Fund Fund ASSETS Cash and investments $ 2413471238 $ 411421948 $ 116391505 $ - Receivables: Accounts 116731960 301098 - - Taxes 719111510 971732 - - Interest 251816 31832 11663 - Loans 791182 1711371269 2419291224 - Other - - - - Due from other funds 410731822 - - - Due from other governments 1881542 217451295 - - Due from Succesor Agency 910021419 - 412911272 - Due from agency fund 941016 - - - Advances to other funds 116211446 - - - Prepaid items 1041344 91974 - - Restricted cash and investments: Held by City - 3581356 6601113 - Held by fiscal agents - 211741204 - - Total assets $ 4911221295 $ 2616991708 $ 3115211777 $ - LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 210271105 $ 3701462 $ 141556 $ - Accrued Liabilities 411271118 3261531 - - Due to other funds - 313501889 - - Retention payable 2121667 1871092 - - Advances from other funds - - - 3619731149 Developer deposits - - - - Settlement payable 810001000 - - - Deferred revenue 617861230 1713231781 2315911520 - Total liabilities 2111531120 2115581755 2316061076 3619731149 Fund Balances: Nonspendable 714811079 310501919 516281977 - Restricted 7501951 210901034 212861724 - Committed 212981088 - - - Assigned 616481922 - - - Unassigned 1017901135 - - (36,973,149) Total fund balances 2719691175 511401953 719151701 (36,973,149) Total liabilities and fund balances $ 4911221295 $ 2616991708 $ 3115211777 $ - See accompanying Notes to Basic Financial Statements. 32 City of Chula Vista Balance Sheet (Continued) Governmental Funds June 30, 2013 Major Funds Park Acquisition Other Total Development Development Governmental Governmental Impact Fund Fund Funds Funds ASSETS Cash and investments $ 3611431548 $ 2612611747 $ 4017521926 $ 13312871912 Receivables: Accounts - - 1191443 118231501 Taxes - - 6771713 816861955 Interest 661073 311110 361416 1641910 Loans - - 217911248 4419361923 Other 1871729 - - 1871729 Due from other funds - - 8731063 419461885 Due from other governments - - 312271431 611611268 Due from Succesor Agency - - - 1312931691 Due from agency fund - - - 941016 Advances to other funds 1017391925 1010951262 - 2214561633 Prepaid items - - 800 1151118 Restricted cash and investments: Held by City - - - 110181469 Held by fiscal agents - - 913241614 1114981818 Total assets $ 4711371275 $ 3613881119 $ 5718031654 $ 24816721828 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 5731649 $ - $ 119551519 $ 419411291 Accrued Liabilities - - 691359 415231008 Due to other funds - - 115951996 419461885 Retention payable 211307 - 761665 4971731 Advances from other funds - - - 3619731149 Developer deposits - - 1014791432 1014791432 Settlement payable - - - 810001000 Deferred revenue 115951812 1551262 616221546 5610751151 Total liabilities 211901768 1551262 2017991517 12614361647 Fund Balances: Nonspendable 1015351338 919401000 6191238 3712551551 Restricted 3414111169 2612921857 2610711557 9119031292 Committed - - 1016171691 1219151779 Assigned - - - 616481922 Unassigned - - (304,349) (26,487,363) Total fund balances 4419461507 3612321857 3710041137 12212361181 Total liabilities and fund balances $ 4711371275 $ 3613881119 $ 5718031654 $ 24816721828 See accompanying Notes to Basic Financial Statements. 33 OW CITY C)F CHULAVISTA 34 City of Chula Vista Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position June 30, 2013 Total Fund Balances-Total Governmental Funds $ 12212361181 Amounts reported for governmental activities in the Statement of Net Position 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 Position. 1891480 Net pension assets were not available to pay for current period expenditures and therefore were not recorded in the governmental funds. 191071 Capital assets used in governmental activities were not financial resources and therefore were not reported in governmental funds. Government-Wide Financial Statements 76910341178 Less:Internal Service Funds'Capital Assets (779,645) Total capital assets 76812541533 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. (21412,730) 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 Position: Compensated absences-due within one year (41000,000) Compensated absences-due in more than one year (21739,216) Claims payable-due within one year (41000,000) Claims payable-due in more than one year (17,021,459) Long-term debt-due within one year (51312,685) Long-term debt-due in more than one year (137,245,012) Pollution Remediation Obligation (150,000) Arbitrage liability (7,831) Net OPEB liability (61027,000) Less:Amount reported in Internal Service Funds Compensated absences-due in more than one year 681654 Total long-term liabilities (176,434,549) 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 Position (11,972,158) Amounts reported in Governmental Fund Financial Statements 5610751151 Total adjustments on deferred revenues 4411021993 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 Position. 412961273 Net Position of Governmental Activities $ 76012511252 See accompanying Notes to Basic Financial Statements. 35 City of Chula Vista Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds For the year ended June 30, 2013 Major Funds Low&Moderate Income Housing Sundry Grants Successor City General Special Revenue Special Revenue Debt Service Fund Fund Fund Fund REVENUES: Taxes $ 7518411123 $ - $ - $ - Intergovernmental 1915421065 1119241928 - - Licenses and permits 113951519 - - - Developer fees - - - - Charges for services 813571509 111241763 - - Fines and forfeitures 110021946 - - Use of money and property 212011490 371176 6701963 - Transfers from Successor agency - - 2371450 - Other 1310231676 5521801 901452 - Total revenues 12113641328 1316391668 9981865 - EXPENDITURES: Current: General government 2217421279 116501945 1111743 - Public safety 6613591410 614121401 - - Public works 2610141418 218671719 - - Parks and recreation 313621558 11400 - - Library 311821483 591177 - - Capital outlay 111721734 517041895 - - Debt service: Principal - - - - Interest and fiscal charges - 123 - - Total expenditures 12218331882 1616961660 1111743 - REVENUES OVER (UNDER)EXPENDITURES (11469,554) (31056,992) 8871122 - OTHER FINANCING SOURCES(USES): Issuance of debt - 211741204 - - Transfers in 916611447 2431624 - 3501000 Transfers out (41910,795) (11157,394) (29,000) - Total other financing sources(uses) 417501652 112601434 (29,000) 3501000 NET CHANGE IN FUND BALANCES 312811098 (11796,558) 8581122 3501000 FUND BALANCE(DEFICIT): Beginning of year,as restated(Note 16) 2416881077 619371511 710571579 (37,323,149) End of year $ 2719691175 $ 5,140,953 $ 719151701 $ (36,973,149) See accompanying Notes to Basic Financial Statements. 36 City of Chula Vista Statement of Revenues, Expenditures and Changes in Fund Balance (Continued) Governmental Funds For the year ended June 30, 2013 Major Funds Park Acquisition Other Total Development Development Governmental Governmental Impact Fund Fund Funds Funds REVENUES: Taxes $ - $ - $ 616091588 $ 8214501711 Intergovernmental - - 914861988 4019531981 Licenses and permits - - 411309 114361828 Developer fees 915881567 414331468 717201821 2117421856 Charges for services - - 1319581541 2314401813 Fines and forfeitures - - 6361835 116391781 Use of money and property (350,532) (127,984) 4981124 219291237 Transfers from Successor agency - - 11870 2391320 Other 711902 - 5431667 1412821498 Total revenues 913091937 413051484 3914971743 18911161025 EXPENDITURES: Current: General government 2331004 - 8061108 2515441079 Public safety - - 4061101 7311771912 Public works 1821819 - 1913511521 4814161477 Parks and recreation - - 1071590 314711548 Library - - - 312411660 Capital outlay 216491102 31616 1116131786 2111441133 Debt service: Principal - - 511131992 511131992 Interest and fiscal charges - - 618181665 618181788 Total expenditures 310641925 31616 4412171763 18619281589 REVENUES OVER (UNDER)EXPENDITURES 612451012 413011868 (41720,020) 211871436 OTHER FINANCING SOURCES(USES): Issuance of debt - - - 211741204 Transfers in - - 918581225 2011131296 Transfers out (41221,342) - (6,233,348) (16,551,879) Total other financing sources(uses) (412211342) - 316241877 517351621 NET CHANGE IN FUND BALANCES 210231670 413011868 (11095,143) 719231057 FUND BALANCE(DEFICIT): Beginning of year,as restated(Note 16) 4219221837 3119301989 3810991280 114,313,124 End of year $ 4419461507 $ 3612321857 $ 3710041137 $ 12212361181 See accompanying Notes to Basic Financial Statements. 37 City of Chula Vista Reconciliation of the Governmental Statement of Revenues,Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Position For the year ended June 30,2013 Net Change in Fund Balances-Total Governmental Funds $ 7,923,057 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 Position, 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. The amount of repairs and maintenance included in Capital Outlay was$6,880,155. 14,263,978 Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position,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$351,254. (28,343,305) The net effect of various miscellaneous transactions involving capital assets(i.e. sales,trade-ins, and donations) decreased Net Position. (164,497) 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 Position. 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 Position. Issuance of long-term debt (21174,204) Principal payment of long-term debt 511131992 Amortization expenses were reported in the Government-Wide Statement of Activities and Changes in Net Position, 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 (39,074) Deferred charges (10,131) Net pension assets (227,001) Certain long-term liabilities were reported in the Government-Wide Statement of Activities and Changes in Net Position, 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 (80,623) Changes in claims payable 11168,405 Changes in arbitrage liability 78,674 Changes in net OPEB liabilities (1,342,000) Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in Net Position,but it did not require the use of current financial resources. This amount represented the change in accrued interest from prior year. 9010 Interest earned on long-term receivables did not provide current financial resources were not reported as revenues in the Governmental Funds. 392,642 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. (781,526) Change in Net Position of Governmental Activities $ (4,130,803) See accompanying Notes to Basic Financial Statements. 38 PROPRIETARY FUND FINANCIAL STATEMENTS City of Chula Vista Statement of Net Position Proprietary Funds June 30, 2013 Governmental Major Fund Nonmajor Activities Sewer Enterprise Internal Fund Funds Total Service Funds ASSETS Current assets: Cash and investments $ 6415981814 $ 1017911592 $ 7513901406 $ 319081151 Receivables: Accounts 418411548 2961154 511371702 71146 Interest 151750 - 151750 - Other 781300 121550 901850 11988 Prepaid items 61000 711588 771588 - Total current assets 6915401412 11,171,884 8017121296 319171285 Noncurrent assets: Advances to other funds 1816811815 - 1816811815 - Capital assets,net 13117541586 219061668 13416611254 7791645 Total noncurrent assets 15014361401 219061668 15313431069 7791645 Total assets 21919761813 1410781552 23410551365 416961930 LIABILITIES AND NET POSITION Liabilities: Current liabilities: Accounts payable 1201256 861637 2061893 2991549 Retention payable 41565 - 41565 - Accrued liabilities 2431148 (35,430) 2071718 321454 Unearned revenue - 8771138 8771138 - Total current liabilities 3671969 9281345 112961314 3321003 Noncurrent liabilities: Advances from other funds - 411651299 411651299 - Compensated absences 1811664 3491089 5301753 681654 Total noncurrent liabilities 1811664 415141388 416961052 681654 Total liabilities 5491633 514421733 519921366 4001657 Net Position: Net investment in capital assets 13117541586 219061668 13416611254 7791645 Unrestricted 8716721594 517291151 9314011745 315161628 Total net position $ 21914271180 $ 816351819 $ 22810621999 $ 412961273 See accompanying Notes to Basic Financial Statements. 40 City of Chula Vista Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds For the year ended June 30, 2013 Governmental Major Fund Nonmajor Activities Sewer Enterprise Internal Fund Funds Total Service Funds OPERATING REVENUES: Charges for services $ 3510111268 $ 1011401895 $ 4511521163 $ 613481423 Other 411599 2991289 3401888 2701286 Total operating revenues 3510521867 1014401184 4514931051 616181709 OPERATING EXPENSES: Operations and administration 2318121460 1211711026 3519831486 714221736 Maintenance 114191268 - 114191268 - Depreciation 515411984 6961617 612381601 3511254 Total operating expenses 3017731712 1218671643 4316411355 717731990 OPERATING INCOME(LOSS) 412791155 (21427,459) 118511696 (11155,281) NONOPERATING REVENUES(EXPENSES): Intergovernmental - 310951626 310951626 - Interest income 3141193 (52,839) 2611354 (81832) Interest expense - (62,927) (62,927) - Gain(loss)on disposal of capital assets 41272 41749 91021 821587 Total nonoperating revenues(expenses) 3181465 219841609 313031074 731755 INCOME(LOSS)BEFORE TRANSFERS 415971620 5571150 511541770 (11081,526) TRANSFERS: Transfers in - 4391238 4391238 3001000 Transfers out (21840,181) (11460,474) (41300,655) - Total transfers (21840,181) (11021,236) (31861,417) 3001000 CHANGE IN NET POSITION 117571439 (464,086) 112931353 (781,526) NET POSITION: Beginning of year 21716691741 910991905 22617691646 510771799 End of year $ 21914271180 $ 816351819 $ 22810621999 $ 412961273 See accompanying Notes to Basic Financial Statements. 41 City of Chula Vista Statement of Cash Flows Proprietary Funds For the year ended June 30, 2013 Governmental Major Fund Nonmajor Activities Sewer Enterprise Internal Fund Funds Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 3418831551 $ 1019851713 $ 4518691264 $ - Cash received from(payments to)other funds (285,490) 1 (285,489) 613811487 Cash payments to supplier and employees for goods and services (25,273,728) (12,207,925) (37,481,653) (71308,049) Other operating revenues 411599 6261467 6681066 2701286 Net cash provided(used)by operating activities 913651932 (595,744) 817701188 (656,276) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (651,536) - (651,536) (703,119) Proceeds received from disposal of capital assets 41272 41749 91021 821587 Net cash provided(used)by capital and related financing activities (647,264) 41749 (642,515) (620,532) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovernmental - 310951626 310951626 - Transfers in - 4391238 4391238 3001000 Transfers(out) (21840,181) (11460,474) (41300,655) - Net cash provided(used)by noncapital financing activities (21840,181) 210741390 (765,791) 3001000 CASH FLOWS FROM INVESTING ACTIVITIES: Interest income 3881428 (51,621) 3361807 (51872) Net cash provided(used)by investing activities 3881428 (51,621) 3361807 (51872) Net increase(decrease)in cash and cash equivalents 612661915 114311774 716981689 (982,680) CASH AND CASH EQUIVALENTS: Beginning of year 5813311899 913591818 6716911717 418901831 End of year $ 6415981814 $ 1017911592 $ 7513901406 $ 319081151 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES: Operating income(loss) $ 41279,155 $ (21427,459) $ 11851,696 $ (11155,281) Adjustments to reconcile operating loss to net cash provided(used)by operating activities: Depreciation 515411984 6961617 612381601 3511254 Changes in operating assets and liabilities: Accounts receivable (49,417) 341575 (14,842) (71146) Other receivable (78,300) 701105 (81195) 401210 Prepaid items 311625 (71,588) (39,963) - Advances to other funds (285,490) - (285,490) - Accounts payable (329,166) 691256 (259,910) 761342 Retention payable 41565 - 41565 - Accrued liabilities 2431148 (35,430) 2071718 321454 Unearned revenue - 7401139 7401139 - Compensated absences 71828 3281041 3351869 51891 Total adjustments 510861777 118311715 619181492 4991005 Net cash provided(used)by operating activities $ 913651932 $ (595,744) $ 817701188 $ (656,276) 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 City of Chula Vista Statement of Fiduciary Net Position Fiduciary Funds June 30, 2013 Successor Agency to the Chula Vista Redevelopment Agency Agency Private-purpose Funds Trust Fund ASSETS Cash and investments $ 1013291756 $ 312361936 Receivables: Account - 31204 Interest - 21608 Loans - 1541252 Other 211002 - Restricted cash and investments 7417101628 510141017 Land - 915021300 Buildings,net - 112271649 Total assets $ 8510611386 1911401966 LIABILITIES Accounts payable and accrued liabilities $ 234 3731460 Due to city 941016 1312931691 Due to fiduciary fund - 501849 Deferred revenue - 1541252 Long-term debt - 4215101000 Due to bondholders 8417541261 - Refundable deposits 2121875 - Total liabilities $ 8510611386 5613821252 Net Position Held in trust (37,241,286) Total net position $ (37,241,286) See accompanying Notes to Basic Financial Statements. 44 City of Chula Vista Statement of Changes in Fiduciary Net Position Fiduciary Funds For the year ended June 30, 2013 Successor Agency to the Chula Vista Redevelopment Agency Private-purpose Trust Fund ADDITIONS: Redevelopment Property Tax Trust Fund 414561770 Investment income 771892 Miscellaneous income 343 Total additions 415351005 DEDUCTIONS: Dissolution payments to San Diego County 110301224 Enforceable Obligations 717091766 Administrative Expenses 6411531 Depreciation 471726 Transfers out to City 2391320 Total deductions 916681567 Change in Net Position (51133,562) Net Position: Beginning of year (32,107,724) End of year $ (37,241,286) See accompanying Notes to Basic Financial Statements. 45 OW CITY C)F CHULAVISTA 46 City of Chula Vista Notes to Basic Financial Statements For the year ended June 30, 2013 NOTE DESCRIPTION PAGE 1 Reporting Entity and Summary of Significant Accounting Policies 48 2 Cash and Investments 58 3 Receivables 62 4 Interfund Balances and Transactions 67 5 Capital Assets 69 6 Long-Term Debt 71 7 Unearned/Deferred Revenue 82 8 Compensated Absences 82 9 Other Required Fund Disclosures 83 10 Self-Insurance Accrued Liabilities 84 11 Pension Plans 85 12 Post Retirement Health Benefits 87 13 Pollution Remediation Obligations 89 14 Commitments and Contingencies 90 15 Utility Tax Settlement 91 16 Prior Period Adjustment 91 17 Classification of Fund Balances 92 47 City of Chula Vista Notes to Basic Financial Statements For the year ended June 30, 2013 Note 1 —Reporting Entity and 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. 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. The financial reporting entity consists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance part of the government's operation and so data from these units are combined with data of the primary government. Discretely presents component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the government. The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial accountability. As a result, these organizations are considered component units of the City and are included within the financial statements of the City using the blended method. All component units have a June 30 year-end. The City has no discretely presented component units. 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. 48 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity(Continued) 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 Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. In 2013, the City implemented GASB Statement No. 63, Financial Reporting of Deferred OuWows of Resources, Deferred Inflows of Resources, and Net Position. The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position)that apply to future periods and that, therefore,will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position)that apply to future periods and that, therefore, are not recognized as a revenue until that time. Government- Wide Financial Statements The City's Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities and Changes in Net Position. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements. These 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 Position. The Statement of Activities presents changes in Net Position. 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 49 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Position 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 and Changes in Net Position, 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/from other funds ➢ Advances to/from other funds ➢ Transfers in/out 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 Position as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources"measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except for that revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources,the deferred revenue is removed from the Balance Sheet and revenue is recognized. The 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. 50 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) C. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) 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. 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 through the collection of property taxes. 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, 2013, 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 Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The City's internal service funds include 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 Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. 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. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts. 51 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (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. Fiduciary Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. 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 Position. 52 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements (Continued The Successor Agency was created by the City of Chula Vista City Council (City Council) in August 2012. 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 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 30,2013. 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. 53 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) 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. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" or "advances to/from other funds" (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and business- type activities are reported in the Governmental-Wide Financial Statements as "internal balances." H. 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 $10,000 for equipment and $100,000 for infrastructure. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings 50 years Improvements other than buildings 50 years Machinery and equipment 5-12 years Infrastructure 30-75 years The City dunes infrastructure as the basic physical assets that allow the City to function. The assets include: ➢ Street system ➢ Sewer system ➢ Site amenities such as parking and landscaped areas used by the City in the conduct of its business 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. 54 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) H. Compensated Absences (Continued) 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. L 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 Position. 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. 55 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) L. Net Position In governmental-wide and proprietary fund financial statements,Net Position are categorized as follows: Net Investment in Capital Assets — This component of net position consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets. Restricted— This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted— This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. When expenses are incurred for purposes for which both restricted and unrestricted Net Position are available, the City's policy is to apply restricted Net Position first,then unrestricted Net Position as they are needed. 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. 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 Director of Finance for that purpose. Unassi — This amount is for any portion of the fund balances that do not fall into one of the above categories. N. Spending Policy Government-Wide Financial Statements and the Proprietary Fund Financial Statements When an expense is incurred for purposes for which both restricted and unrestricted Net Position are available, the City's policy is to apply restricted Net Position first. 56 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 1 —Reporting Entity and Summary of Significant Accounting Policies (Continued) N. Spending Policy Governmental Fund Financial Statements 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 Committed Balance 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. O. 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. P. Accounting Changes GASB has issued Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements ("SCA'). The requirements of this statement improve financial reporting by establishing recognition, measurement, and disclosure requirements for SCAs for both transferors and governmental operators, requiring governments to account for and report SCAs in the same manner, which improves the comparability of financial statements. This statement became effective for periods beginning after December 15, 2011 and did not have a significant impact on the City's financial statements for the year ended June 30, 2013. GASB has issued Statement No. 61, The Financial Reporting Entity: Omnibus — an amendment of GASB Statements No. 14 and No. 34. The requirements of this statement result in financial reporting entity financial statements being more relevant by improving guidance for including, presenting, and disclosing information about component units and equity interest transactions of a financial reporting entity. This statement became effective for periods beginning after June 15, 2012 and did not have a significant impact on the City's financial statements for year ended June 30, 2013. GASB has issued Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements. This statement combines the authoritative accounting and financial reporting of the FASB and the American Institute of Certified Public Accountants ("AICPA"). The statement eliminates the need for financial statement preparers and auditors to determine which FASB and AICPA pronouncement provisions apply to state and local governments. This statement became effective for period beginning after December 15, 2011 and did not have a significant impact on the City's financial statements for the year ended June 30, 2013. GASB has issued Statement No. 63, Financial Reporting of Deferred OuWows of Resources, Deferred Inflows of Resources, and Net Position. The requirement of this statement standardizes the presentation of the deferred inflows and outflows of resources and their effects on a government's net position. This statement became effective for periods beginning after December 15, 2011. The implementation of this statement to the City was limited to renaming of"Net Assets"to "Net Position". 57 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 2—Cash and Investments The following is a summary of pooled cash and investments, including cash and investments with fiscal agents at June 30, 2013. Government-Wide Statement of Net Assets Fiduciary Funds Governmental Business-Type Statement of Activities Activities Total Net Assets Total Cash and investments $ 13711961063 $ 7513901406 $ 21215861469 $ 1315661692 $ 22611531161 Restricted cash and investments: Held by City 110181469 - 110181469 - 110181469 Held by fiscal agents 1114981818 - 1114981818 7917241645 9112231463 Total restricted cash and investments 1215171287 - 1215171287 7917241645 9212411932 Total cash and investments $ 14917131350 $ 7513901406 $ 22511031756 $ 9312911337 $ 31813951093 Cash, cash equivalents and investments consisted of the following at June 30, 2013: Petty cash $ 71550 Deposits with financial institution 2419761800 Investments 20211871281 Investments held by bond trustee 9112231463 Total cash and investments $ 31813951093 A. Deposits The carrying amount of the City's cash deposits were $24,976,800 at June 30,2013. Bank balances before reconciling items were $26,390,206 at that date,the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus,collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The 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. 58 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 2—Cash and Investments (Continued) B. Investments As of June 30, 2013,the City had the following investments and maturities: Investment 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 $ 47,424,198 $ 47,424,198 Time Deposits 310,000 310,000 - - - - - San Diego County Investment Pool 39,216,675 39,216,675 - - - - - CalTrust Short-Term Fund 1,011,589 1,011,589 - - - - - Federal Home Loan Bank 20,633,160 - - - 8,894,910 11,738,250 - Federal National Mortgage Association 36,501,748 - - 5,989,440 30,512,308 - - Federal Home Loan Mortgage Corporation 30,591,082 - 10,023,472 - 5,921,100 14,646,510 - Federal Farm Credit Bank 26,498,829 - - - 13,760,449 12,738,380 - Held by bond trustee: U.S.Treasury 2,005,380 2,005,380 - - - - - Investment Agreements 14,577,627 811,797 - - - - 13,765,830 Mutual Funds 74,640,456 74,640,456 - - - - - Total $ 293,410,744 $ 165,420,095 $ 10,023,472 $ 5,989,440 $ 59,088,767 $ 39,123,140 $ 13,765,830 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% * Excluding amounts held by bond trustee that are not subject to California Government Code restriction. ** Maximum is$50 million per account. 59 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 2—Cash and 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 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 C. Risks 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. At June 30,2013,the City's pooled cash and investments had the following maturities: Maturity Percentage of Investment Less than one year 44% One to two years 5% Two to three years 3% Three to four years 28% Four to five years 19% The weighted average maturity of the portfolio was 2.7 years. 60 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 2—Cash and Investments (Continued) C. Risks Disclosures (Continued) 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 Investment Type Fair Value Moody's &Poor's LAIF $ 4714241198 Not Rated Not Rated Time Deposits 3101000 Not Rated Not Rated San Diego County Investment Pool 3912161675 Not Rated AAAf CalTrust Short-Term Fund 110111589 Not Rated Aaf Federal Home Loan Bank 2016331160 Aaa AAA Federal National Mortgage Association 3615011748 Aaa AAA Federal Home Loan Mortgage Corporation 3015911082 Aaa AAA Federal Farm Credit Bank 2614981829 Aaa AAA $ 20211871281 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: Issuer Investment Type Fair Value Federal Home Loan Bank Federal Agency Securities $ 20,633,160 Federal National Mortgage Association Federal Agency Securities 36,501,748 Federal Home Loan Mortgage Corporation Federal Agency Securities 30,59102 Federal Farm Credit Bank Federal Agency Securities 26,498,829 61 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 2—Cash and Investments (Continued) D. Investments in Local Agency Investment 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, 2013 included a portion of pool funds invested in Structure Notes and Asset-Backed Securities: Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables. As of June 30, 2013, the City had $47,424,198 invested in LAIF, which had invested 1.96% of the pool investment funds in Structured Notes and Asset-Back Securities. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 20131 by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants' total aggregate amortized cost by total aggregate fair value. The credit quality rating of LAIF is unrated as of June 30, 2013. Note 3—Receivables A. Taxes Receivable At June 30, 2013,the City had the following taxes receivable: Governmental Activities Sales Tax $ 319131188 Highway Users Tax 4741575 Property Tax 3571297 Utilities Users Tax 9631234 Transient Occupancy Tax 5141937 Franchise Fee Tax 214631724 Total $ 816861955 62 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 3—Receivables (Continued) B. Loans Receivable At June 30, 2013, the City had the following loans receivable, including principal and accrued interest: Governmental Activities Principal Deferred Interest Total South Bay Community Services $ 318801291 $ 212001484 $ 610801775 Heritage(South Bay Community Villas L.P.) 414001000 110811313 514811313 Girls and Boys Club Construction Loan 681750 - 681750 Rancho Vista Housing(Chelsea Investment Corporation) 115001000 3981219 118981219 St.Regis Park(Chelsea Investment Corp) 113871152 110831873 214711025 Chula Vista Rehabilitation CHIP Loans 210111995 1691017 211811012 Park Village Apts(Civic Center Barrio Housing Corporation) 1911134 - 1911134 Mobile Home Assistance Programs 361105 - 361105 Los Vecinos(Wakeland Housing and Development Corporation) 516801000 115171732 711971732 Main Plaza(Alpha III Development Inc.) 118001000 4441814 212441814 Seniors on Broadway(MAAC Project) 315111194 7531121 412641315 The Landings(Chelsea Investment Corp) 914091948 5201954 919301902 First Time Home Buyers Program 114251504 - 114251504 Neighborhood Stabilization First Time Home Buyer Program 2101800 - 2101800 NSP Rental Housing Program 110001000 961682 110961682 Community Energy Retrofit Program 1571841 - 1571841 Total $ 3616701714 $ 812661209 $ 4419361923 South Bay Community Services In 1998, the former Chula Vista Redevelopment Agency (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 restricted 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, 2013, the outstanding balance of the loan was $6,080,775, which included a deferred interest accrual of$2,200,484. 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 restricted in the Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2013, the outstanding balance of the loan was $5,481,313 which included a deferred interest accrual of$1,081,313. 63 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 3—Receivables (Continued) B. Loans Receivable(Continued) 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 restricted in the General Fund. At June 30, 2013,the outstanding balance of the loan was $68,750. 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 fifty-five (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 annual basis, out of a fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2013, the outstanding balance of the loan was $1,898,219 which included a deferred interest accrual of$398,219. St. &gis 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, 2013, the outstanding balance of the loan was $2,471,025 which included a deferred interest accrual of$1,083,873. 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 restricted 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, 2013, the outstanding balance of the loan was $2,181,012 which included a deferred interest accrual of$169,017. Park Village Apartments (Civic Center Barrio Housing CoLporation� 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 restricted in the Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2013, the outstanding balance of the loan was $191,134. 64 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 3—Receivables (Continued) B. Loans Receivable(Continued) Mobile Home Assistance Proms 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 restricted in the Low and Moderate Income Housing Successor Special Revenue Fund. At June 30, 2013, the outstanding balance of the loan was $36,105. Los VVecinos (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, 2013, the outstanding balance of the loan was $7,197,732 which included a deferred interest accrual of$1,517,732. Main Plaza (Alpha III Development Inca 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, 2013, the outstanding balance of the loan was $2,244,814 which included a deferred interest accrual of$444,814. Seniors on Broadway QMAA C Protect) 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, 2013, the outstanding balance of the loan was $4,264,315 which included a deferred interest accrual of$753,121. 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, 2013, the outstanding balance of the loan was $9,930,902 which included a deferred interest accrual of$520,954. 65 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 3—Receivables (Continued) B. Loans Receivable(Continued) First Time Home Buyers proms 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 restricted in the Sundry Grants Special Revenue Fund. At June 30, 2013, the outstanding balance of the loan was $1,425,504. Neighborhood Stabilization First Time Home Buyers proms 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 restricted in the Sundry Grants Special Revenue Fund. At June 30, 2013, the outstanding balance of the loan was $210,800. NSP Rental Housing proms The RDA entered into a loan agreement with San Diego Community Housing Corporation to acquire and rehabilitate rental housing for very low income households. The loan is secured by promissory notes and 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 restricted in the Sundry Grants Special Revenue Fund. At June 30, 2013, the outstanding balance of the loan was $1,096,682 which included deferred interest accrual of$96,682. Community Retrofit proms 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 restricted in the General Fund and Sundry Grants Special Revenue Fund. At June 30, 2013, the outstanding balances of the loans were $10,432 and$147,409,respectively. 66 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 4—Interfund Balances and Transactions Due to/Due from other funds At June 30, 2013, interfund receivables and payables were as follows: Due To Other Funds Sundry Grants Nonmaj or Special Revenue Governmental Due From Other Funds Fund Funds Total General Fund $ 313501889 $ 7221933 $ 410731822 Nonmajor Governmental Funds - 8731063 8731063 Total $ 313501889 $ 115951996 $ 419461885 Current interfund balances arise in the normal course of operations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year. Long-Term Advances At June 30, 2013,balances were as follows: Advances From Other Funds City Nonmaj or Debt Service Enterprise Advances To Other Funds Fund Fund Total General Fund $ 116211446 $ - $ 116211446 Developer Impact Capital Projects Fund 1017391925 - 1017391925 Park Acquisition Development Fund 1010951262 - 1010951262 Sewer Enterprise Fund 1415161516 411651299 1816811815 Total $ 3619731149 $ 411651299 $ 4111381448 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 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 $10,095,262 at June 30, 2013. 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. 67 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 4—Interfund Balances and Transactions (Continued) Trans fens In/Out Interfund transfers for the year ended June 30, 2013 were as follows: Transfers In Sundry Grants City Nonmajor Nonmajor Governmental General Special Debt Governmental Enterprise Activities Transfers Out Fund Revenue Fund Service Fund Funds Funds Internal Service Total General Fund S - S 1561541 S - S 410311076 S 4231178 S 3001000 S 419101795 Sundry Grants Special Revenue Fund 2771585 - - 8791809 - - 111571394 Low&Moderate Income Housing Special Revenue - - - 291000 - - 291000 Development Impact Fund - 591545 - 411611797 - - 412211342 Nonmajor Governmental Fund 513491267 271538 1001000 7561543 - - 612331348 Sewer Enterprise Fund 218241121 - - - 161060 - 218401181 Nonmajor Enterprise Funds 112101474 - 2501000 - - - 114601474 Total S 916611447 S 2431624 S 3501000 S 918581225 S 4391238 S 3001000 S 2018521534 General Fund - Operating support to reimburse the General Fund for City staff services and equipment. Total amount of reimbursement was $9,661,447. Sund�y Giants Special Revenue Fund—Transferring the General Fund's matching contribution to the federal grants in the amount of $156,541. Reimbursing project costs from the Development Impact Funds and Assessment District Improvement Funds in the amount of$87,083. City Debt Service - Funding debt service funds for repayment of various long-term obligations amounted to $350,000. Non-major Governmental Funds - Funding debt service funds for repayment of various long-term obligations and to fund various capital improvement projects amounted to $9,581,386. Other transfers were for operating support, staff services and capital improvement projects in the amount of $9,000 from Home Program, $59,000 from CDBG, and $29,000 from Low and Moderate Income Housing to Chula Vista Housing Authority, $614 from General Fund and $79,224 from Transportation Sales Tax to Bicycle Facility. Transfer from General Fund to the Residential Construction Tax Fund for debt service expense in the amount of$37,265 and staff reimbursement cost from State Recreation Grants to Residential Construction Tax in the amount of$62,736. Non-major EnteEprise Funds — Permit subsidies from the General Fund to the Development Services Fund in the amount of$391,178. Operating support to reimburse the Development Services Fund for services provided. Total amount of reimbursement was $48,060. Internal Service Funds - Operating support to reimburse the Fleet Management Fund for internal services provided. Total amount of reimbursement was $300,000. 68 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 5—Capital Assets A. Government-Wide Financial Statements Summary of changes in capital assets for governmental activities for the year ended June 30, 2013 are as follows: Balance CIP Balance June 30,2012 Additions Deletions Transfers June 30,2013 Capital assets,not being depreciated: Land $ 7512131471 $ 110941540 $ - $ - $ 7613081011 Construction in progress 1710791100 912791396 - (61079,619) 2012781877 Total capital assets,not being depreciated 9212921571 1013731936 - (61079,619) 9615861888 Capital assets,being depreciated: - Buildings 21117021502 9261372 - - 21216281874 Improvements other than buildings 12915691741 - - - 12915691741 Machinery and equipment 2718811393 416881379 (828,454) - 3117411318 Infrastructure 64717161692 - - 610791619 65317961311 Subtotal 1101618701328 516141751 (828,454) 610791619 1102717361244 Less accumulated depreciation - Buildings (43,383,844) (41246,236) - - (47,630,080) Improvements other than buildings (38,305,413) (21742,594) - - (41,048,007) Machinery and equipment (24,119,244) (41827,923) 6631957 - (28,283,210) Infrastructure (220,428,260) (17,899,397) - - (238,327,657) Subtotal (326,236,761) (29,716,150) 6631957 - (355,288,954) Total capital assets,being depreciated 69016331567 (24,101,399) (164,497) 610791619 67214471290 Total capital assets,net $ 78219261138 $ (13,727,463) $ (164,497) $ - $ 76910341178 Depreciation expense was charged to functions/programs as follows: General government $ 311351026 Public safety 312741498 Public works 1918791844 Parks and recreation 213521784 Library 7221744 Internal service 3511254 Total depreciation expense $ 2917161150 69 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 5—Capital Assets (Continued) A. Government-Wide Financial Statements (Continued) Summary of changes in capital assets for business-type activities for the year ended June 30,2013 are as follows: Balance CIP Balance June 30,2012 Additions Deletions Transfers June 30,2013 Capital assets,not being depreciated: Construction in progress $ 1,849,675 $ 345,594 $ - $ 2,195,269 Total capital assets,not being depreciated 1,849,675 345,594 - - 2,195,269 Capital assets,being depreciated: Machinery and equipment 13,007,566 305,942 (26,179) - 13,287,329 Infrastructure 227,718,283 - - 227,718,283 Subtotal 240,725,849 305,942 (26,179) - 241,005,612 Less accumulated depreciation Machinery and equipment (10,943,826) (1,054,612) 26,179 - (11,972,259) Infrastructure (91,383,379) (5,183,989) - - (96,567,368) Subtotal (102,327,205) (6,238,601) 26,179 - (108,539,627) Total capital assets,being depreciated 138,398,644 (5,932,659) - - 132,465,985 Total capital assets,net $ 140,248,319 $ (5,587,065) $ - $ - $ 134,661,254 Depreciation expenses for business-type activities for the year ended June 30,2013 are as follows: Sewer $ 5,541,984 Transit 636,617 Sewer DIFS 6000 Total depreciation expense $ 6,23801 B. Fiduciary Funds Financial Statements Summary of changes in capital assets for fiduciary funds for the year ended June 30, 2013 are as follows: Balance CIP Balance June 30,2012 Additions Deletions Transfers June 30,2013 Capital assets,not being depreciated: Land $ 9,502,300 $ - $ - $ - $ 9,502,300 Total capital assets,not being depreciated 9,502,300 - - - 9,502,300 Capital assets,being depreciated: - Buildings 2,386,218 - - - 2,386,218 Subtotal 2,386,218 - - - 2,386,218 Less accumulated depreciation Buildings (1,110,843) (47,726) - - (1,158,569) Subtotal (1,110,843) (47,726) - - (1,158,569) Total capital assets,being depreciated 1,275,375 (47,726) - - 1,227,649 Total capital assets,net $ 10,777,675 $ (47,726) $ - $ - $ 10,729,949 Depreciation expense for fiduciary funds for the year ended June 30,2013 was $47,726. 70 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 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, 2013 is as follows: Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year Certificate of Participation $ 13212901000 $ - $ (31915,000) $ 128,375,000 $ 412351000 $ 12411401000 Section 108 Loan 815941000 - (332,000) 812621000 3491000 719131000 Notes Payable 416951100 211741204 (461,638) 614071666 4481772 519581894 Capital Leases 6851267 - (405,354) 2791913 2791913 - Bond Premium 251988 - (11181) 241807 - 241807 Bond Discount (831,944) - 401255 (791,689) - (791,689) Total $ 14514581411 $ 211741204 $ (51074,918) $ 142,557,697 $ 513121685 $ 13712451012 A. Certificates of Participation Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year 2002 COP Police Facility $ 5113901000 $ - $ (11460,000) $ 4919301000 $ 115201000 $ 4814101000 2003 Refunding COP 112501000 - (11030,000) 2201000 2201000 - 2004 COP Civic Ctr Ph 1 3212951000 - (915,000) 3113801000 9501000 3014301000 2006 COP Civic Ctr Ph 2 1810001000 - (510,000) 1714901000 5301000 1619601000 2010 Refunding COP Corp Yard 2913551000 - - 2913551000 110151000 2813401000 Total $13212901000 $ - $ (31915,000) $128,375,000 $ 412351000 $12411401000 2 0 02 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, 2013 the outstanding balance is $49,930,000. 71 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation (Continued) The annual debt service requirements for the 2002 Certificates of Participation outstanding at June 30, 2013 are as follows: Year Ending June 30, Principal Interest Total 2014 $ 115201000 $ 213961546 $ 319161546 2015 115851000 213321465 319171465 2016 116601000 213321465 319221264 2017 117351000 212981784 319211706 2018 118151000 319211831 1916361841 2019-2023 1015251000 1916471509 1916361841 2024-2028 1315701000 1917151750 1916971250 2029-2033 1715201000 1917991500 1917831750 Total $ 4919301000 $ 7214441851 $ 9414321662 2003 Refunding 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, 2013 the outstanding balance is $220,000. The annual debt service requirements for the 2003 Refunding Certificates of Participation outstanding at June 30, 2013 are as follows: Year Ending June 30, Principal Interest Total 2014 $ 2201000 $ 31850 $ 2231850 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, 2013 the outstanding balance is $31,380,000. 72 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt (Continued) A. 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, 2013 are as follows: Year Ending June 30, Principal Interest Total 2014 $ 9501000 $ 114421074 $ 213921074 2015 9851000 114061449 213911449 2016 110251000 114061449 213941511 2017 110651000 113871980 213931511 2018 111101000 213951911 1119681970 2019-2023 612801000 1119661346 1119681970 2024-2028 718151000 1119641348 1119631388 2029-2033 918701000 1119631525 1119651275 2034 212801000 213941000 417861500 Total $ 3113801000 $ 4613271082 $ 6212241648 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 301 2013 the outstanding balance is $17,490,000. The annual debt service requirements for the 2006 Certificates of Participation Civic Center Project Phase II outstanding at June 30, 2013 are as follows: Year Ending June 30, Principal Interest Total 2014 $ 5301000 $ 7401389 $ 112701389 2015 5501000 7211309 112711309 2016 5701000 7211309 112701959 2017 5901000 7111134 112691584 2018 6151000 112721459 613491506 2019-2023 314451000 613451919 613491506 2024-2028 318951000 610181925 611841984 2029-2033 412551000 515231425 515221813 2034-2035 310401000 2771650 414211074 Total $ 1714901000 $ 2213321518 $ 3319101123 73 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation (Continued) 2010 Refunding COP CoLp 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, 2013 the outstanding balance is $ 2913551000. The annual debt service requirements for the 2010 Refunding Certificates of Participation Corp Yard outstanding at June 30, 2013 are as follows: Year Ending June 30, Principal Interest Total 2014 $ 110151000 $ 114771206 $ 214921206 2015 110551000 114361606 214911606 2016 110851000 114361606 214871319 2017 111301000 114191463 214941344 2018 111701000 214891144 1214571356 2019-2023 618251000 1214581506 1214571356 2024-2028 817051000 1214531969 1214531038 2029-2033 813701000 915721025 1110081250 Total $ 2913551000 $ 4217431525 $ 5813411475 B. Section 108 Loan Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year Section 108 Loan $ 815941000 $ - $ (332,000) $ 81262,000 $ 3491000 $ 719131000 Total $ 815941000 $ - $ (332,000) $ 81262,000 $ 3491000 $ 719131000 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, 2013, the outstanding balance is $8,262,000. The annual debt service payments are as follows: 74 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6-Long-Term Debt(Continued) Governmental Activities Long-Term Debt (Continued) B. Section 108 Loan (Continued) Year Ending June 30, Principal Interest Total 2014 $ 349,000 $ 403,752 $ 752,752 2015 367,000 389,175 756,175 2016 385,000 389,175 758,242 2017 404,000 381,578 759,858 2018 425,000 762,118 3,815,100 2019-2023 2,464,000 3,814,650 3,815,100 2024-2028 3,144,000 3,775,761 3,787,573 2029 724,000 743,620 1,493,476 Total $ 8,262,000 $ 10,659,829 $ 15,938,276 C. Notes Payable Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year The Adamo-Parking Structure Note $ 82,180 $ - $ (47,523) $ 34,657 $ 34,657 $ - Taxable QECB Lease Purchase Agreement - 2,174,204 - 2,174,204 - 2,174,204 California Energy Commission(CEC)Loan#1 660,586 - (154,566) 506,020 154,566 351,454 California Energy Commission(CEC)Loan#2 1,959,134 - (63,789) 1,895,345 63,789 1,831,556 California Energy Commission(CEC)Loan#3 1,74708 - (160,223) 1,587,445 160,223 1,427,222 SDG&E OBF Loan#1(Parkway Boiler) 7602 - (8,518) 68,144 M18 59,626 SDG&E OBF Loan#2(Transit HVAC) 168,870 - (27,019) 141,851 27,019 114,832 Total CEC Loans/SDG&E On-Bill Financing 4,612,920 - (414,115) 4,19805 414,115 3,78400 Total $ 405,100 $ 2,174,204 $ (461,638) $ 6,40706 $ 448,772 $ 5,958,894 The Adamo -Parking Structure Note In 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, 2013, the outstanding balance is $34,657. The annual debt service payments are as follows: Year Ending June 30, Principal Interest Total 2014 $ 341657 $ 11086 $ 351743 On December 21, 2012, the City entered into a lease purchase agreement with a private party to purchase certain energy conservation equipment. The lease/purchase agreement would bridge the financial gap between the Municipal Street Listing Retrofit Project capital costs and the available rebates for energy conservation equipment. As of June 30, 2013,the outstanding balance is $2,174,204. The annual debt service requirements are as follows: 75 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Governmental Activities Long-Term Debt (Continued) C. Notes Payable (Continued) Taxable QECB Lease/Purchase Agreement(Continued) Year Ending June 30, Principal Interest Total 2014 $ 1711187 $ 1271554 $ 2981741 2015 1821660 771515 2601176 2016 1841323 701265 2541588 2017 1861000 621950 2481950 2018 1871693 551567 2431260 2019-2023 9641399 1641729 111291129 2024-2025 2971942 111816 3091758 Total $ 211741204 $ 5701398 $ 217441602 California Enew 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, 2013, the outstanding balance is $4,198,805. D. Capital Leases Classification Balance Debt Debt Balance Due within June 30,2012 Issued Retired June 30,2013 One Year SD County Regional Comm.System $ 54401 $ - $ (264,948) $ 279,913 $ 279,913 Medical Resuscitation Equipment 140,406 - (140,406) - - Total $ 685,267 $ - $ (405,354) $ 279,913 $ 279,913 SD County&gional 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, 2013, the outstanding balance is $279,913. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2013, are as follows: Year Ending June 30, Principal Interest Total 2014 $ 2791913 $ 151815 $ 2951728 76 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt A summary of changes in fiduciary funds long-term debt for the year ended June 30, 2013 is as follows: Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year Tax Allocations Bonds $ 43,005,000 $ - $ (1,020,000) $ 41,985,000 $ 4,235,000 $ 124,140,000 ERAF Loan $ 710,000 $ - $ (185,000) $ 525,000 $ 195,000 $ 330,000 Total $ 43,715,000 $ - $ (1,205,000) $ 42,510,000 $ 4,430,000 $ 124,470,000 A. Tax Allocation Bonds Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year 2006 Senior Tax Allocation Refunding Bonds,Series A $ 11,080,000 $ - $ (540,000) $ 10,540,000 $ 565,000 $ 9,975,000 2006 Subordinate Tax Allocation Refunding Bonds,Series B 10,300,000 - (480,000) 9,820,000 500,000 9,320,000 2008 Tax Allocation Refunding Bonds 21,625,000 - - 21,625,000 - 21,625,000 Total $ 43,005,000 $ - $ (1,020,000) $ 41,985,000 $83,970,000 $124,935,000 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, 2013, at various redemption prices. The bonds are payable solely from certain tax increment revenues of the RDA and other funds held under the indenture. As of June 30, 2013, the outstanding balance is $10,540,000. The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2014 $ 5651000 $ 4501133 $ 110151133 2015 5901000 4241145 110141145 2016 6151000 4241145 110391145 2017 6401000 4101870 110501870 2018 6651000 1,011,314 116761314 2019-2023 317751000 510451137 818201137 2024-2028 316901000 410621670 717521670 Total $ 1015401000 $1118281414 $ 2213681414 77 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt(Continued) A. Tax Allocation Bonds (Continued) 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, 2013, at various redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. As of June 30, 2013, the outstanding balance is $9,820,000. The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2014 $ 5001000 $ 4871934 $ 9871934 2015 5251000 4641096 9891096 2016 5501000 4641096 110141096 2017 5751000 4511759 110261759 2018 6051000 9861484 115911484 2019-2023 315101000 419141119 814241119 2024-2028 315551000 319681306 715231306 Total $ 918201000 $1117361794 $ 2115561794 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. As of June 30, 2013, the outstanding balance is $21,625,000. The annual debt service requirements are as follows: 78 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt(Continued) A. Tax Allocation Bonds (Continued) 2008 Tax Allocation Refunding Bonds (Continued) Year Ending June 30, Principal Interest Total 2014 - 9631636 9631636 2015 5751000 9521136 115271136 2016 6001000 9521136 115521136 2017 6201000 9401636 115601636 2018 6451000 115231936 211681936 2019-2023 316351000 716101881 1112451881 2024-2028 414751000 715921858 1210671858 2029-2033 515851000 714341113 13,019,113 2034-2037 514901000 6661900 611561900 Total $2116251000 $2816371233 $ 5012621233 Pledged Revenues The Successor Agency has pledged tax revenues to the repayment of the RDA's debts transferred to it on February 11 2013 through the final maturity of the Bonds, or early retirement of the Bonds,whichever comes first. Tax revenues consist of Redevelopment Property Tax Trust Fund distributions 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. Redevelopment Property Tax Trust Fund distributions earned in fiscal year 2013 was $3,949,717 and total debt service of all Tax Allocation Bonds paid was $2,968,865. The Bonds required 75% of net distributions. In future years, annual principal and interest payments on the Tax Allocation Bonds are expected to require 75% of Redevelopment Property Tax Trust Fund distributions. B. ERAF Loan Classification Balance Debt Debt Balance Due within Due in More June 30,2012 Issued Retired June 30,2013 One Year Than One Year 2005 ERAF $ 2701000 $ - $ (85,000) $ 185,000 $ 901000 $ 951000 2006 ERAF 4401000 - (100,000) 3401000 1051000 2351000 Total $ 7101000 $ - $ (185,000) $ 5251000 $ 1951000 $ 3301000 79 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Fiduciary Funds Long-Term Debt(Continued) D. ERAF Loan, Continued 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, 2013. As of June 30, 2013, the outstanding balance is $185,000. The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2014 $ 901000 $ 101356 $ 1001356 2015 951000 51880 1001880 Total $ 1851000 $ 161236 $ 2011236 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. As of June 30, 2013, the outstanding balance is $340,000. The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2014 $ 105,000 $ 20,188 $ 125,188 2015 115,000 14,282 129,282 2016 120,000 7,792 127,792 Total $ 340,000 $ 42,262 $ 382,262 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, 2013, the special assessment debts outstanding are as follows: 80 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 6—Long-Term Debt(Continued) Special Assessment Debt—Non-City Obligations (Continued) Original Outstanding Amount June 30,2013 CFD 06-1A Eastlake Woods,Vista,Land Swap $ 3910001000 $ 3219601000 CFD 06-1 B Eastlake Woods,Vista,Land Swap 718801000 617801000 CFD 01-2 McMillin Otay Valley Ranch Village 6 1012501000 815851000 CFD 08-I Otay Ranch Village 2116551000 1812801000 CFD 07-1 Otay Ranch Village 11 2810501000 2116751000 CFD 12-1 McMillin Otay Ranch Village 7 2215651000 1712651000 CFD 2001-1B San Miguel Ranch 2005 Improvement 1212301000 1019651000 CFD 13-1 McMillin Otay Ranch Village 7 1616201000 919501000 CFD 07-1 McMillin Otay Ranch Village 1 1619501000 1318301000 2005 Revenue Refunding Bonds 9319301000 7416501000 AD 94-I Eastlake Greens Phase II 714641474 216251000 RAD 2001-1 Refunding Revenue Bonds Residential 2014451000 818651000 RAD 2001-2 Refunding Revenue Bonds Commercial 917051000 114351000 Industrial Development Revenue Bonds, 1992 Series A-D 25010001000 15010001000 Industrial Development Revenue Bonds, 1996 Series A-B 9819001000 9819001000 Industrial Development Revenue Bonds, 1997 Series A 2510001000 2510001000 Industrial Development Revenue Bonds,2004 Series A-F 25112651000 25112651000 Industrial Development Revenue Bonds,2006 Series A 16112401000 16112401000 Total $ 1109311491474 $ 91412701000 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. At June 30, 2013, the multi-family housing bonds outstanding are as follows: Original Outstanding Amount June 30,2013 2000 A Pear Tree Manor Project $ 517791000 $ 415491000 1999 A Villa Serena Project 515661500 510551000 2007 A Oxford Terrace Apartments 212761000 118261000 2007 B Oxford Terrace Apartments 213631000 213631000 2006 A Teresina Apartment Projects 3719401000 3719401000 2007 C The Landing Apartment 1616701000 518701301 Total $ 7015941500 $ 5716031301 81 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 7—Unearned/Deferred Revenue A. Government-Wide Financial Statements At June 30, 2013,unearned revenue was reported as follows: Public Facilities Development Impact Fee Prepayment $ 112031496 UTT Wireless 214861873 Grants 911581927 Total $ 1218491296 B. Governmental Fund Financial Statements At June 30, 2013, deferred revenue was reported as follows: Interest receivable on: Advances to other funds $ 318641821 Loans Receivable: South Bay Community Services 211711019 South Bay Community Villas,L.P. 110811313 St.Regis Park 110831873 Chula Vista Rehabilitation CHIP Loans 2571377 Los Vecinos(Wakeland Housing&Development) 115171732 Seniors on Broadway(MAAC Project) 7531121 Rancho Vista Housing(Chelsea Invest Corp.) 3981219 Alpha III Development(Main Plaza) 4441814 The Landings(Chelsea Invest.Corp) 614281902 Long-term receivables 2717111537 Public Facilities DIF 112031496 Grants 911581927 Total $ 5610751151 Note 8—Compensated Absences Government-Wide Financial Statements—Governmental Activities Summary of changes in governmental activities compensated absences for the year ended June 30, 2013 is as follows: Classification Balance Balance Due within Due in More July 1,2012 Additions Deletions June 30,2013 One Year Than One Year Compensated Absences $ 616521700 $ 412021012 $ (41115,496) $ 61739,216 $ 410001000 $ 217391216 Total $ 616521700 $ 412021012 $ (41115,496) $ 61739,216 $ 410001000 $ 217391216 The City's liability for vested and unpaid compensated absences (accrued vacation) has been accrued and amounts to $6,739,216 at June 30, 2013. 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. 82 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 8—Compensated Absences (Continued) Government-Wide Financial Statements—Governmental Activities (Continued) Compensated absences at June 30, 2013 are obligations of the following funds: Governmental Funds $ 6,670,562 Fleet Mangement 68,654 $ 6,739,216 Governmental-Wide Financial Statements—Business-Type Activities Compensated absences at June 30, 2013 are obligations of the following funds: Classification Balance Balance Due within Due in More July 1,2012 Additions Deletions June 30,2013 One Year Than One Year Compensated Absences $ 1941887 $ 7221458 $ (386,592) $ 5301753 $ 3861592 $ 1441161 Total $ 1941887 $ 7221458 $ (386,592) $ 5301753 $ 3861592 $ 1441161 Note 9—Other Required Fund Disclosures At June 30, 2013, the following funds had deficit fund equity: Fund Type Funds Deficit Debt Service City Debt Services Fund $ (36,973,149) Fiduciary Fund RDA Successor Agency Private Purpose Trust Fund $ (32,107,724) Special Revenue Transportation Grants $ (283,783) Special Revenue Traffic Safety $ (11042) City Debt Service Fund - The City Debt Service fund had an accumulated deficit of $(36,973,149), due to the fund booking its long term advances. The City expects to repay the advances via transfers from other funds. RDA Successor Agency Private Purpose Trust - The RDA Successor Agency Private Purpose Trust fund had an accumulated deficit of $(37,241,812), which resulted from insufficient revenues received through property tax increment. Now that the Redevelopment Agency has been dissolved, the Successor Agency expects to receive sufficient Redevelopment Property Tax Trust Fund distributions through the remaining life of the bonds to fully fund their repayment. Transportation Grants Fund - The Transportation Grants fund had an accumulated deficit of$(283,783), due to the fund booking its long term advances. The City expects to repay the advances via transfers from other funds. Traffic Safety Fund- The Traffic Safety fund had an accumulated deficit of$(1,042), due to the fund booking its long term advances. The City expects to repay the advances via transfers from other funds. 83 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 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. 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, 2013, 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: Balance at Claims and Balance at Beginning of Changes in Claims End of Fiscal Year Estimates Payments Fiscal Year 2010-2011 $ 1818011604 $ 719601587 $ (41330,098) $ 2214321093 2011-2012 2214321093 313721465 (31614,694) 2211891864 2012-2013 2211891864 312881127 (41456,532) 2110211459 The liabilities for claims and judgments typically will be liquidated from the General Fund. 84 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 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. A separate report for the City's plan within the Fund is not available. Funding Policy Plan participants are required to contribute a percentage of their annual covered salary. The City has implemented a three Tiered structure. Participants become members of a specific tier based upon their date of membership to PERS. Miscellaneous members contribute 8%, 7% and 6.75% of covered salary for tiers 1,2,3 respectively. Safety members contribute 9% regardless of PERS membership date or tier. In addition, the City is required to make an employer contribution at an actuarial determined rate of 23.668% and 26.492% for miscellaneous and safety employees respectively, of annual covered payroll for the year ended June 30, 2013. The City's total covered payroll for the year ending June 30, 2012 was $74,422,435. The contribution requirement of plan members and the City are established and may be amended by PERS. Readers of this document are advised to refer directly to the full disclosure of actuarial and funding practices of the multi-employer Ca1PERS system, which this agency does not control. Ca1PERS may employ actuarial techniques such as extended smoothing and amortization periods that would result in future increases in required employer contributions which are not reflected in these financial statements, particularly in the event of any future changes in governmental financial reporting standards and system-wide funding practices. Further information on its financial practices should be requested from CalPERS. Annual Pension Cost For fiscal year 2013, the City's annual pension cost of $18,188,432 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. 85 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 11 —Pension Plans (Continued) A. California Public Employees'Retirement Plan (Continued) Annual Pension Cost(Continued) THREE-YEAR TREND INFORMATION FOR PERS Annual Pension Cost(APC) Percentage of Net Net Miscellaneous Safety APC Pension Pension Fiscal Year Employees Employees Total Contributed Obligation Asset 6/30/2011 $ 919521829 $ 911391398 $ 1910921227 100% $ - $ 311751108 6/30/2012 1215631479 1114321810 2319961289 100% - 2461072 6/30/2013 914821754 817051678 1811881432 100% - 191071 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: 6/30/2012 $ 29916591390 $ 39519721103 $ 9613121713 75.7% $ 4113791439 232.75% Safety: 6/30/2012 $ 28912571775 $ 33713681764 $ 4811101989 85.7% $ 3310421996 145.60% B. Defined Contribution Pension Plan The City provides pension plan benefits for all of its part-time employees through a defined contribution plan (Public Agency Retirement Plan). In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered by Phase II Systems. All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5% to a retirement plan, and City Council resolved to match the employees' contributions of 3.75%. The City's contributions for each employee (and interest earned by the accounts) are fully vested immediately. For the year ended June 30, 2013, the City's total hourly payroll and covered payroll was $1,782,958. The City made employer contributions of$66,861 (3.75% of current covered payroll), and employees contributed $66,861 (3.75% of current covered payroll). 86 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 12—Post Retirement Health Benefits Plan Description The City provides a Retiree Healthcare Plan, a single employer defined benefit plan, which allows retirees to purchase healthcare coverage under the City's medical plan. Retirees pay 100% of the premiums. Retirees not eligible for Medicare pay the same healthcare premiums as active employees, even though retiree's healthcare costs are greater than that of active employees. This results in an implied subsidy of retiree's healthcare costs by the City. In fiscal year 2012, the City entered into an agreement with various bargaining groups eliminating the subsidized retiree health care rates for employees hired under the Second Tier Ca1PERS Retirement Plan. The postemployment benefit is a single- employer plan. The plan has not been audited and therefore, there is no audited GAAP-basis postemployment benefit plan report available. 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, 2013: Police Fire Miscellaneous Total Eligible active employee 201 124 558 883 Enrolled eligible retirees 19 9 192 220 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. 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 monthly in premium on behalf of one employee who retired under the incentive plan in fiscal year 2013. Annual OPEB Cost and Net OPEB Obligation 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 unfunded actuarial liabilities (or funding excess)not to exceed thirty years. 87 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 12—Post Retirement Health Benefits (Continued) Annual OPEB Cost and Net OPEB Obligation (Continued) The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation: 2013 2012 2011 Annual required contribution $ 119741000 $ 118031000 $ 114701000 Interest on net OPEB obligation 1871000 1511000 1081000 Adjustment to the annual required contribution (460,000) (285,000) - Net OPEB cost 117011000 116691000 115781000 Contribution made (359,000) (537,000) (574,000) Increase in net OPEB liability 113421000 111321000 110041000 Net OPEB liability,beginning of the year 416851000 315531000 215491000 Net OPEB liability,end of year $ 610271000 $ 416851000 $ 315531000 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2011, 2012 and 2013 were as follows: Percentage of Net Annual Actual Annual OPEB OPEB Fiscal Year OPEB Cost Contributions Cost Contributed Obligation 2010-2011 1,578,000 57400 36% 3,55300 2011-2012 10900 53700 32% 40500 2012-2013 1,701,000 35900 21% 6,02700 Funded Status and Funding Progress As of June 30, 2013, the most recent actuarial valuation date, the plan was not funded in its initial year of implementation. The actuarial accrued liability for benefits was $13,081,000, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability ("UAAL") of$13,081,000 and a funded ratio (actuarial value of assets as a percentage of the actuarial liability) of 0%. 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. 88 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 12—Post Retirement Health Benefits (Continued) 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 4.0 % discount rate, the inflation rate for HMO's starts at 8.5% (the increase in 2014 premiums over 2013) and grades down to 5.0% (2021 premiums over 2020) and remains at 5.0% into the future. This assumption means healthcare is assumed to increase, on the average, 6.75% a year for HMOs/PPOs Non-Medicare and 6.95% a year for HMOs/PPOs Medicare a year for the next seven years after 2013. 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. 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 6/30/2012 $ - $ 1310811000 $ (13,081,000) 0.00% $ 6219231000 (20.79)% Note 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, 2013, the City identified the following sites which met one of the above obligating events: CoLp 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. 89 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 13—Pollution Remediation Obligations (Continued) 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, 2013, the City recorded pollution remediation obligations in the amount of$150,000 on the Government-Wide Statement of Net Position and allocated the total amount to General Government on the Government-Wide Statement of Activities and Changes in Net Position. 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. Note 14—Commitments and Contingencies Litigation 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. Grants 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. City Loan to Successor Agency The General Fund has loaned a cumulative amount of $9,002,419 including interest to the Successor Agency for unreimbursed services rendered by City staff. It is anticipated that the Agency will repay this loan from Redevelopment Property Tax Trust Fund distributions. Currently, Redevelopment Property Tax Trust Fund distributions are used to pay for related debt service expenditures and possible future debt issuance. As a result, the Successor 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. Successor Agency—Long Range Property Management Plan The City, acting as the Successor Agency to the Chula Vista Redevelopment Agency,prepared a Long Range Property Management Plan(LRPMP) in compliance with AB 1484. The Successor Agency Oversight Board reviewed and approved the LRPMP on July 8, 2013 and submitted it to the California Department of Finance for review on July 10, 2013. The Department of Finance has not yet issued a determination letter regarding the LRPMP. 90 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 15—Utility Tax Settlement This is a class action civil case. The case was filed as a tax refund action. The tax at issue is the City's Telephone Users Tax ("TUT"). Plaintiffs allege that the City has been improperly taxing cell phone use in violation of its own TUT ordinance. That 1970 ordinance states, among other things, that "mobile and marine telephone service" charges are excluded from the tax. The TUT ordinance also ties itself to the scope of the Federal Excise Tax, which has undergone substantial limitations as a result of reported federal case law. The proposed class was certified by court order as: "All persons, including individuals, non-corporate entities, and corporations, whenever organized and existing, who have paid the Chula Vista Telephone Users Tax imposed by Chula Vista Municipal Code §3.44.030 on mobile phone services or who have paid the Telephone Users Tax on telephone services which are not taxable under section 4251 of the Internal Revenue Code." The amount of refund indicated in the preliminary settlement agreement between wireless phone users and the City of Chula Vista dated April 4, 2013 includes $8 million being made available for funding for rebates and refunds of the City's TUT and payment of litigation expenses and attorney's fees. The settlement makes cash rebates available to Chula Vista wireless phone users who paid taxes on their wireless phone bills from April 2010 through April 2013. Once the court has finally approved the settlement, the tax rate will be reduced from 5%to 4.75%. Note 16—Prior Period Adjustment A prior period adjustment was recorded to reduce Sales Tax in lieu revenue accrual from FY 2006 due to errors the States calculation of the Sales Tax in lieu relating to the California Budget Act of 2006 for City of Chula Vista's General Fund. Accordingly, governmental activities' net position and general fund's fund balances at July 1, 2012 were restated as follows: Government-Wide Financial Statements Governmental Activities Beginning Net Position,as previously reported $ 76717331036 Prior period adjustment (31350,981) Beginning Net Position,as restated $ 76413821055 Fund Financial Statements General Fund Beginning Fund Balance,as previously reported $ 2810391058 Prior period adjustment (31350,981) Beginning Fund Balance,as restated $ 2416881077 91 City of Chula Vista Notes to Basic Financial Statements (Continued) For the year ended June 30, 2013 Note 17-Classification of Fund Balances Major Funds 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 $ 104,344 $ 10,000 $ - $ - $ - $ - $ - $ 114,344 Loans receivable 7,376,735 3,040,919 5,628,977 - 10,535,338 9,940,000 619,238 37,141,207 Total nonspendable 7,481,079 3,050,919 5,628,977 - 10,535,338 9,940,000 619,238 37,255,551 Restricted San Diego Authority for Freeway Emergenc: 750,951 - - - - - - 750,951 SLESF-law enforcement - 194,083 - - - - - 194,083 Police grants - 163,920 - - - - - 163,920 Asset forfeiture-drug enforcement and education - 307,596 - - - - - 307,596 Library services grant - 190,079 - - - - - 190,079 Park and recreation grants - 14,023 - - - - - 14,023 SD Neighboorhood Reinvestment Program - 230,437 - - - - - 230,437 Federal grants - (27,692) - - - - - (27,692) State grants - (9,296) - - - - - (9,296) ARRA grants - 272,421 - - - - - 272,421 environ.grants - 1,338,976 - - - - - 1,338,976 Community and housing development - (584,513) 2,286,724 - - - 1,269,767 2,971,978 Public facilities - - - - 10,712,381 - - 10,712,381 Otay Ranch Village ramp and bridge - - - - 3,562,574 - - 3,562,574 Transportation improvements - - - - 14,068,601 - 2,716,484 16,785,085 Telegraph Canyon drainage - - - - 6,067,613 - - 6,067,613 Park acquisitions and development - - - - - 26,292,857 - 26,292,857 Parking meter services - - - - - - 949,466 949,466 Traffic signal and safety - - - - - - 1,955,212 1,955,212 Storm drain - - - - - - 252,043 252,043 Open space maintenance - - - - - - 16,452,491 16,452,492 Assessment districts improvement - - - - - - 2,476,094 2,476,093 Total restricted 750,951 2,090,034 2,286,724 - 34,411,169 26,292,857 26,071,557 91,903,292 Committed Ecomonic contingency 2,298,088 - - - - - 138,023 2,436,111 Debt service - - - - - - 10,479,668 10,479,668 Total committed 2,298,088 - - - - - 10,617,691 12,915,779 Assigned City Council 43,772 - - - - - - 43,772 City Clerk 25,351 - - - - - - 25,351 City Attorney 135,354 - - - - - - 135,354 City Administration 19,295 - - - - - - 19,295 Information Technology Services Departmei 25,599 - - - - - - 25,599 Finance Department 10,633 - - - - - - 10,633 Non-Departmental 863,431 - - - - - - 863,431 Animal Care Services Department 25,000 - - - - - - 25,000 Planning&Bulding Services 215,766 - - - - - - 215,766 Police Department 730,652 - - - - - - 730,652 Fire Department 250,987 - - - - - - 250,987 Public Works Department 2,175,482 - - - - - - 2,175,482 Recreation Department 106,990 - - - - - - 106,990 Library 66,112 - - - - - - 66,112 Fire Equipment Lease Fund 24,065 - - - - - - 24,065 Public liability 1,930,433 - - - - - - 1,930,433 Total assigned 6,648,922 - - - - - - 6,648,922 Unassigned 10,790,135 - - (36,973,149) - - (304,349) (26,487,363) Total fund balances $ 27,969,175 $ 5,140,953 $ 7,915,701 $ (36,973,149) $ 44,946,507 $ 36,232,857 $ 37,004,137 $ 122,236,181 92 REQUIRED SUPPLEMENTARY INFORMATION OW CITY C)F CHULAVISTA 94 City of Chula Vista Required Supplementary Information For the year ended June 30, 2013 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/category level. Any budget modification, which would result in an appropriation increase, requires City Council approval. The City Manager is 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, 2013, 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, and Public & Educational Government Fees Special Revenue fund, which is used to account for the 1% PEG fees. 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. 95 City of Chula Vista Required Supplementary Information (Continued) For the year ended June 30, 2013 1. BUDGETARY INFORMATION(Continued) Budget Comparison Schedule, General Fund Budgeted Amounts Actual Variance with Original Final Amounts Final Budget REVENUES: Taxes 8410321418 8410321418 $ 7518411123 $ (81191,295) Intergovernmental 115391171 216631127 1915421065 1618781938 Licenses and permits 8251630 110151630 113951519 3791889 Charges for services 617121128 713341984 813571509 110221525 Fines and forfeitures 211991885 211991885 110021946 (11196,939) Use of money and property 212341999 212851498 212011490 (84,008) Other 1318411680 1416511506 1310231676 (11627,830) Total revenues 111,385,911 11411831048 12113641328 711811280 EXPENDITURES: Current: General government: City council 113011464 113991375 111981390 2001985 Boards and Commissions 101076 101076 71210 21866 City clerks 8381722 9181722 7751149 1431573 City attorney 214521390 215341696 214751240 591456 Administration 118491012 210161602 119731150 431452 Management and information 219121845 219251647 218971505 281142 Human resources 317911885 317451198 313781580 3661618 Finance 312651377 312651377 312521688 121689 Non-Departmental 111681977 319421209 412591534 (317,325) Planning and building 217701245 218721771 215241833 3471938 Total general government 2013601993 2316301673 2217421279 8881394 Public safety: Police 4319631270 4319191881 4214801862 114391019 Fire 2217951614 2411961731 2318781548 3181183 Total public safety 6617581884 6811161612 6613591410 117571202 Public works: Engineering 2211291226 2211601336 2210701269 901067 General services 410781629 319381800 319441149 (51349) Total public works 2612071855 2610991136 2610141418 841718 Parks and recreation 315811151 316731267 313621558 3101709 Library 312021657 312621210 311821483 791727 Capital outlay 110651486 310851946 111721734 119131212 Total expenditures 12111771026 12718671844 12218331882 510331962 REVENUES OVER (UNDER)EXPENDITURES (91791,115) (13,684,796) (11469,554) 1212151242 Other Financing Sources(Uses) Transfers in 1016141758 1119081758 916611447 (21247,311) Transfers out 410721250 419321555 (41910,795) (91843,350) Total other financing sources(uses) 1416871008 1618411313 417501652 (12,090,661) Net change in fund balance $ 418951893 $ 311561517 312811098 $ 1241581 Fund Balance: Beginning of year 2416881077 End of year $ 2719691175 96 City of Chula Vista Required Supplementary Information (Continued) For the year ended June 30, 2013 1. BUDGETARY INFORMATION(Continued) Budget Comparison Schedule, Sunda Giants Special Revenue Fund Budgeted Amounts Actual Variance with Orginal Final Amounts Final Budget REVENUES: Intergovernmental $ 1514401519 $ 2019491448 $ 1119241928 $ (91024,520) Charges for services 9791000 9791000 1,124,763 1451763 Use of money and property 201000 201000 371176 171176 Other 1911000 2001889 5521801 3511912 Total revenues 1616301519 2211491337 1316391668 (81509,669) EXPENDITURES: Current: General government 316941537 516531840 116501945 410021895 Public safety 711781410 915371461 614121401 311251060 Public works 413871999 611901194 218671719 313221475 Parks and recreation 11200 281696 11400 271296 Library 2811270 2811270 591177 2221093 Capital outlay 216251222 1014591991 517041895 417551096 Debt Service: Interest and fiscal charges 216251222 1014591991 123 1014591868 Total expenditures 2017931860 4216111443 1616961660 2519141783 REVENUES OVER (UNDER)EXPENDITURES (41163,341) (20,462,106) (31056,992) 1714051114 OTHER FINANCING SOURCES(USES): Issuance of debt - - 211741204 211741204 Transfers in 2041649 1651416 2431624 781208 Transfers out (11083,246) (11049,648) (11157,394) (107,746) Total other financing sources(uses) (878,597) (884,232) 112601434 211441666 Net change in fund balance $ (51041,938) $ (21,346,338) (11796,558) $ 1915491780 Fund Balance: Beginning of year 619371511 End of year $ 511401953 97 City of Chula Vista Required Supplementary Information (Continued) For the year ended June 30, 2013 1. BUDGETARY INFORMATION(Continued) Budget Comparison Schedule, Low and Moderate Income Housing Successor Special Revenue Fund Budgeted Amounts Actual Variance with Orginal Final Amounts Final Budget REVENUES: Use of money and property $ 171885 $ 171885 $ 6701963 $ 6531078 Transfers from Successor Agency 118571673 118571673 2371450 (11620,223) Other - - 901452 901452 Total revenues 118751558 118751558 9981865 (876,693) EXPENDITURES: Current: General government 1621975 1621975 1111743 511232 Total expenditures 1621975 1621975 1111743 511232 REVENUES OVER (UNDER)EXPENDITURES 117121583 117121583 8871122 (825,461) OTHER FINANCING SOURCES(USES): Transfers out (29,000) (29,000) (29,000) - Total other financing sources(uses) 517421764 517421764 (29,000) (31129,461) Net change in fund balance $ 714551347 $ 714551347 8581122 $ (61597,225) Fund Balance: Beginning of year 710571579 End of year $ 719151701 98 City of Chula Vista Required Supplementary Information (Continued) For the year ended June 30, 2013 2. SCHEDULE OF FUNDING PROGRESS PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS) SCHEDULE OF FUNDING PROGRESS Miscellaneous Employ 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 6/30/2010 $ 27112751031 $ 35515191797 $ 8412441766 76.30% $ 4314981397 193.67% 6/30/2011 $ 28719431786 $ 38115821655 $ 9316381869 75.46% $ 41,109,611 227.78% 6/30/2012 $ 29916591390 $ 39519721103 $ 9613121713 75.68% $ 4113791439 232.75% Safety Employ 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 6/30/2010 $ 25516981516 $ 29517641402 $ 4010651886 86.45% $ 3412981135 116.82% 6/30/2011 $ 27317501352 $ 31918381087 $ 4610871735 85.59% $ 3410001483 135.55% 6/30/2012 $ 28912571775 $ 33713681764 $ 4811101989 85.74% $ 3310421996 145.60% 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 6/30/2009 $ - $ 1118851000 $ (11,885,000) 0.00% $ 6910871000 (17.20)% 6/30/2011 $ - $ 1316171000 $ (13,617,000) 0.00% $ 7316511000 (18.49)% 6/30/2013 $ - $ 1310811000 $ (13,081,000) 0.00% $ 6219231000 (20.79)% 99 OW CITY C)F CHULAVISTA 100 SUPPLEMENTARY INFORMATION 101 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 Vines (excluding parking violations). The Vines 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. Mobile Park Fee— This fund was established to account for the Mobilehome Park Space Rent Review Admin Fee to reimburse the city for all staff time and other costs associated with administering the review. Public&Educational Government (PEG) Fees— This fund was established to account for the 1%PEG fees. 102 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. Notes Payable - This fund is used for the payment of principal and interest on various notes payable. Lease Payable - This fund is used to account for the City's portion of the infrastructure and financing costs of the San Diego County regional communications systems (RCS) and lease purchase of the Fire Department's medical resuscitation equipment. CAPITAL 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. 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. 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. 103 City of Chula Vista Combining Balance Sheet Non-Major Governmental Funds June 30, 2013 Special Revenue Transportation Parking Traffic Town Developer Open Space Grants Meter Safety Centre I Deposits Districts ASSETS Cash and investments $ 3,612,035 $ 959,499 $ 5,569 $ 50,626 $ 10,914,272 $ 17,427,323 Receivables: Accounts - 35,401 - - - - Taxes 474,575 - - - - 39,923 Interest 4,928 1,082 92 64 - 20,077 Loans - - - - - - Due from other funds - - - - - - Due from other governments - - - - - - Prepaid items - - - - - - Restricted cash and investments: Held by fiscal agent - - - - - - Total assets $ 4,091,538 $ 995,982 $ 501 $ 5000 $ 10,914,272 $ 17,487,323 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 46,516 $ 6,703 $ - $ 434,840 $ 1,034,832 Accrued liabilities - - - - - - Due to other funds - - - - - - Retention payable 55,921 - - - - - Developer deposits - - - - 10,479,432 - Deferred revenue 4,319,400 - - - - - Total liabilities 4,375,321 46,516 6,703 - 10,914,272 1,034,832 Fund Balances: Nonspendable - - - - - - Restricted - 949466 - 5000 - 16452491 Committed - - - - - - Unassigned (283,783) - (1,042) - - - Total fund balances (283,783) 949466 (1,042) 5000 - 16452491 Total liabilities and fund balances $ 4,091,538 $ 995,982 $ 501 $ 5000 $ 10,914,272 $ 17487,323 104 City of Chula Vista Combining Balance Sheet (Continued) Non-Major Governmental Funds June 30, 2013 Special Revenue Housing Traffic Transportation Housing Mobile Programs Signals Sales Tax Storm Drain Authority Park Fees ASSETS Cash and investments $ 46,014 $ 1,972478 $ - $ 205415 $ 415,647 $ 34,220 Receivables: Accounts 21,442 - - 62480 - 120 Taxes - - - 558 - - Interest - 2,953 1,238 250 476 64 Loans 629,741 - - - 2,161,507 - Due from other funds - - 873,063 - - - Due from other governments 1,380 - 1,755,617 - - - Prepaid items - - - - - - Restricted cash and investments: Held by fiscal agent - - - - - - Total assets $ 698,577 $ 1,975431 $ 2,629,918 $ 268,703 $ 2,577,630 $ 34404 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ 20,219 $ 302,247 $ 1600 $ 84 $ 4,770 Accrued liabilities - - - - 69,359 - Due to other funds - - - - - - Retention payable - - 14,309 - - - Developer deposits - - - - - - Deferred revenue 9803 - - - 2,161,507 - Total liabilities 9803 20,219 316,556 1600 2,230,950 4,770 Fund Balances: Nonspendable 619,238 - - - - - Restricted - 1,955,212 2,313,362 252,043 34600 29,634 Committed - - - - - - Unassigned (19,524) - - - - - Total fund balances 599,714 1,955,212 2,313,362 252,043 34600 29,634 Total liabilities and fund balances $ 698,577 $ 1,975431 $ 2,629,918 $ 268,703 $ 2,577,630 $ 34404 (Continued) 105 City of Chula Vista Combining Balance Sheet (Continued) Non-Major Governmental Funds June 30, 2013 Special Revenue Debt Service Capital Projects Public Public Residential Education& Financing Notes Lease Construction Highway Govt Fee Authority Payable Payable Tax Safety ASSETS Cash and investments $ 464,206 $ 1,227,209 $ 5,558 $ 275,290 $ 215,222 $ 412,613 Receivables: Accounts - - - - - - Taxes 162,657 - - - - - Interest 228 606 192 25 392 798 Loans - - - - - - Due from other funds - - - - - - Due from other governments - - - - - - Prepaid items - 800 - - - - Restricted cash and investments: Held by fiscal agent - 9,324,614 - - - - Total assets $ 627,091 $ 10,553,229 $ 5,750 $ 275,315 $ 215,614 $ 413,411 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ (114,899) $ - $ - $ - $ 301 Accrued liabilities - - - - - - Due to other funds - 331,502 - - - - Retention payable - - - - - - Developer deposits - - - - - - Deferred revenue - - - - - 42,776 Total liabilities - 21603 - - - 43,077 Fund Balances: Nonspendable - - - - - - Restricted 627,091 - - - 215,614 370,334 Committed - 10,336,626 5,750 275,315 - - Unassigned - - - - - - Total fund balances 627,091 10,336,626 5,750 275,315 215,614 370,334 Total liabilities and fund balances $ 627,091 $ 10,553,229 $ 5,750 $ 275,315 $ 215,614 $ 413,411 (Continued) 106 City of Chula Vista Combining Balance Sheet (Continued) Non-Major Governmental Funds June 30, 2013 Capital Projects Total Industrial Assessment Other Other Bicycle Development District Transportation Transportation Governmental Facility Authority Improvements Partnership Program Funds ASSETS Cash and investments $ - $ 50 $ 2480,952 $ 28,728 $ - $ 40,752,926 Receivables: Accounts - - - - - 119443 Taxes - - - - - 677,713 Interest - 8 2,907 36 - 36416 Loans - - - - - 2,791,248 Due from other funds - - - - - 873,063 Due from other governments - - - - 1,470434 3,227431 Prepaid items - - - - - 800 Restricted cash and investments: Held by fiscal agent - - - - - 9,324,614 Total assets $ - $ 58 $ 2483,859 $ 28,764 $ 1470434 $ 5703,654 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ - $ - $ 7,765 $ - $ 195481 $ 1,955,519 Accrued liabilities - - - - - 69,359 Due to other funds - - - - 1,264,494 1,595,996 Retention payable - - - - 6435 7605 Developer deposits - - - - - 10479432 Deferred revenue - - - - - 6,622,546 Total liabilities - - 7,765 - 1466410 20,799,517 Fund Balances: Nonspendable - - - - - 619,238 Restricted - 58 2476,094 28,764 4,024 26,071,557 Committed - - - - - 101701 Unassigned - - - - - (304,349) Total fund balances - 58 2476,094 28,764 4,024 3704,137 Total liabilities and fund balances $ - $ 58 $ 2483,859 $ 28,764 $ 1470434 $ 5703,654 (Concluded) 107 City of Chula Vista Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non-Major Governmental Funds For the year ended June 30, 2013 Special Revenue Transportation Parking Traffic Town Developer Open Space Grants Meter Safety Centre I Deposits Districts REVENUES: Taxes $ - $ - $ - Intergovernmental 50602 - - - - - Licenses and permits - 42,489 - - - - Developer fees - - - - 7,720,821 - Charges for services - - - - - 12,142,260 Fines and forfeitures - 20902 426,373 - - - Use of money and property (18,810) 349,730 (613) (266) 17,745 (82,226) Transfers from Successor agency - - - - - - Other 3,678 - - - - - Total revenues 5,651,470 60201 425,760 (266) 7,738,566 12,060,034 EXPENDITURES: Current: General government - - - - - - Public safety - 361,557 37,227 - - - Public works - - - - 7,738,566 11,355,550 Parks and recreation - - - - - - Capital outlay 1,827,174 2,125 - - - - Debt Service: Principal - - - - - - Interest and fiscal charges - - - - - - Total expenditures 1,827,174 36302 37,227 - 7,738,566 11,355,550 REVENUES OVER (UNDER)EXPENDITURES 3,824,296 238,399 388,533 (266) - 704484 OTHER FINANCING SOURCES(USES): Transfers in - - - - - - Transfers out (4,439,428) - (492,669) - - - Total other financing sources(uses) (4,439,428) - (492,669) - - - NET CHANGE IN FUND BALANCES (615,132) 238,399 (104,136) (266) - 704484 FUND BALANCES: Beginning of year 331,349 711,067 103,094 50,956 - 15,74807 End of year $ (283,783) $ 949466 $ (1,042) $ 5000 $ - $ 16452491 108 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, 2013 Special Revenue Housing Traffic Transportation Housing Mobile Programs Signals Sales Tax Storm Drain Authority Park Fees REVENUES: Taxes $ - $ - $ 6,196,036 $ - Intergovernmental 1203 - 1,582,504 - - - Licenses and permits - - - (1,180) - - Developer fees - - - - - - Charges for services 68 240,397 - 58707 230,513 129,650 Fines and forfeitures - - - 600 - - Use of money and property 1,560 (13,937) (4,140) (961) (5,868) (191) Transfers from Successor agency - - - - - - Other 37,635 24,945 2,068 - 456,505 - Total revenues 51,346 251,405 7,776468 586,346 681,150 129459 EXPENDITURES: Current: General government 24,878 - - - 773492 - Public safety - - - - - - Public works - 1,962 - 247,835 - - Parks and recreation - - - - - 99,825 Capital outlay - 946457 6,54503 - - - Debt Service: Principal - - - - - - Interest and fiscal charges 555 - - - - - Total expenditures 25433 948419 6,54503 247,835 773492 99,825 REVENUES OVER (UNDER)EXPENDITURES 25,913 (697,014) 1,23005 338,511 (92,342) 29,634 OTHER FINANCING SOURCES(USES): Transfers in - - - - 9700 - Transfers out - - (79,224) (340,463) (166,085) - Total other financing sources(uses) - - (79,224) (340,463) (69,085) - NET CHANGE IN FUND BALANCES 25,913 (697,014) 1,151,581 (1,952) (161,427) 29,634 FUND BALANCES: Beginning of year 57301 2,652,226 1,161,781 253,995 508,107 - End of year $ 599,714 $ 1,955,212 $ 2,313,362 $ 252,043 $ 34600 $ 29,634 (Continued) 109 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, 2013 Special Revenue Debt Service Capital Projects Public Public Residential Education& Financing Notes Lease Construction Highway Govt Fee Authority Payable Payable Tax Safety REVENUES: Taxes $ - $ - $ - $ - $ 413,552 $ - Intergovernmental - - 1,149 - - 130,753 Licenses and permits - - - - - - Developer fees - - - - - - Charges for services 627,766 - - - - - Fines and forfeitures - - - - -Use of money and property (675) 27608 (591) (88) (2,279) (4,512) Transfers from Successor agency - 1,870 - - - - Other - - - - - - Total revenues 627,091 278,538 558 (88) 411,273 126,241 EXPENDITURES: Current: General government - 7,738 - - - - Public safety - 7,317 - - - - Public works - - - - - - Parks and recreation - - - - - - Capital outlay - - - - - 126,240 Debt Service: Principal - 3,91500 793,638 405,354 - - Interest and fiscal charges - 6,199,463 584,754 33,893 - - Total expenditures - 10,129,518 1,378,392 439,247 - 126,240 REVENUES OVER (UNDER)EXPENDITURES 627,091 (9,850,980) (1,377,834) (439,335) 411,273 1 OTHER FINANCING SOURCES(USES): Transfers in - 7,767,272 1,09907 714,247 10001 - Transfers out - - - - (677,319) - Total other financing sources(uses) - 7,767,272 1,09907 714,247 (577,318) - NET CHANGE IN FUND BALANCES 627,091 (2,083,708) (277,967) 274,912 (166,045) 1 FUND BALANCES: Beginning of year - 12420,334 283,717 403 381,659 370,333 End of year $ 627,091 $ 10,336,626 $ 5,750 $ 275,315 $ 215,614 $ 370,334 (Continued) 110 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, 2013 Capital Projects Total Industrial Assessment Other Other Bicycle Development District Transportation Transportation Governmental Facility Authority Improvements Partnership Program Funds REVENUES: Taxes $ - $ - $ - $ - $ - $ 609,588 Intergovernmental (72,230) - - - 2,166,127 9,486,988 Licenses and permits - - - - - 41,309 Developer fees - - - - - 7,720,821 Charges for services - - - - - 13,958,541 Fines and forfeitures - - - - - 636,835 Use of money and property - (46) (12,226) (150) - 498,124 Transfers from Successor agency - - - - - 1,870 Other - - 18,836 - - 54307 Total revenues (72,230) (46) 6,610 (150) 2,166,127 39,497,743 EXPENDITURES: Current: General government - - - - - 806,108 Public safety - - - - - 406,101 Public works 708 - - - - 19,351,521 Parks and recreation - - 7,765 - - 107,590 Capital outlay - - - - 2,166,127 11,613,786 Debt Service: Principal - - - - - 5,113,992 Interest and fiscal charges - - - - - 6,81805 Total expenditures 708 - 7,765 - 2,166,127 44,217,763 REVENUES OVER (UNDER)EXPENDITURES (79,838) (46) (1,155) (150) - (4,720,020) OTHER FINANCING SOURCES(USES): Transfers in 79,838 - - - - 9,858,225 Transfers out - (10,622) (27,538) - - (6,233,348) Total other financing sources(uses) 79,838 (10,622) (27,538) - - 3,624,877 NET CHANGE IN FUND BALANCES - (10,668) (28,693) (150) - (1,095,143) FUND BALANCES: Beginning of year - 10,726 2,504,787 28,914 4,024 38,099,280 End of year $ - $ 58 $ 2,476,094 $ 28,764 $ 4,024 $ 3704,137 (Concluded) 111 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transportation Grants Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Intergovernmental $ 611581439 $ 516661602 $ (491,837) Use of money and property - (18,810) (18,810) Other - 31678 31678 Total revenues 611581439 516511470 (506,969) Expenditures: Capital outlay 514891006 118271174 316611832 Total expenditures 514891006 118271174 316611832 REVENUES OVER (UNDER)EXPENDITURES 6691433 318241296 311541863 Other Financing Sources(Uses): Transfers out (41439,428) (41439,428) - Total other financing sources(uses) (41439,428) (41439,428) - Net change in fund balance $ (31769,995) (615,132) $ 311541863 Fund Balance: Beginning of year 3311349 End of year $ (283,783) 112 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parking Meter Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Licenses and permits $ 241000 $ 421489 $ 181489 Fines and forfeitures 2001000 2091862 91862 Use of money and property 3761000 3491730 (26,270) Total revenues 6001000 6021081 21081 Expenditures: Current: Public safety 4351775 3611557 741218 Capital outlay 5171839 21125 5151714 Total expenditures 9531614 3631682 5891932 REVENUES OVER (UNDER)EXPENDITURES (353,614) 2381399 5921013 Net change in fund balance $ (353,614) 2381399 $ 5921013 Fund Balance: Beginning of year 7111067 End of year $ 9491466 113 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Safety Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Fines and forfeitures $ 4881640 $ 4261373 $ (62,267) Use of money and property - (613) (613) Total revenues 4881640 4251760 (62,880) Expenditures: Current: Public safety 381500 371227 11273 Total expenditures 381500 371227 11273 REVENUES OVER (UNDER) EXPENDITURES 4501140 3881533 (61,607) Other Financing Sources (Uses): Transfers out (534,140) (492,669) 411471 Total other financing sources(uses) (534,140) (492,669) 411471 Net change in fund balance $ (84,000) (104,136) $ (20,136) Fund Balance: Beginning of year 1031094 End of year $ (11042) 114 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Town Centre I Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ - $ (266) $ (266) Total revenues - (266) (266) Expenditures: Capital outlay 101433 - 101433 Total expenditures 101433 - 101433 REVENUES OVER (UNDER)EXPENDITURES (10,433) (266) 10,167 Net change in fund balance $ (10,433) (266) $ 101167 Fund Balance: Beginning of year 501956 End of year $ 501690 115 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Open Space Districts Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 1210141967 $ 1211421260 $ 1271293 Use of money and property - (82,226) (82,226) Total revenues 1210141967 1210601034 451067 Expenditures: Current: Public works 1211441805 1113551550 7891255 Total expenditures 1211441805 1113551550 7891255 REVENUES OVER (UNDER)EXPENDITURES (129,838) 7041484 8341322 Net change in fund balance $ (129,838) 7041484 $ 8341322 Fund Balance: Beginning of year 1517481007 End of year $ 1614521491 116 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Programs Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Intergovernmental $ 2441000 $ 121083 $ (231,917) Charges for services - 68 68 Use of money and property - 11560 11560 Other - 371635 371635 Total revenues 2441000 511346 (192,654) Expenditures: Current: General government 2641570 241878 2391692 Debt service: Interest and fiscal charges - 555 (555) Total expenditures 2641570 251433 2391137 REVENUES OVER (UNDER)EXPENDITURES (20,570) 251913 461483 Net change in fund balance $ (20,570) 251913 $ 461483 Fund Balance: Beginning of year 5731801 End of year $ 5991714 117 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Traffic Signals Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 1751000 $ 2401397 $ 651397 Use of money and property - (13,937) (13,937) Other - 241945 241945 Total revenues 1751000 2511405 761405 Expenditures: Current: Public works 151000 11962 131038 Capital outlay 119331158 9461457 9861701 Total expenditures 119481158 9481419 9991739 REVENUES OVER (UNDER)EXPENDITURES (11773,158) (697,014) 110761144 Net change in fund balance $ (11773,158) (697,014) $ 110761144 Fund Balance: Beginning of year 216521226 End of year $ 119551212 118 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Transportation Sales Tax Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Taxes $ 513101873 $ 611961036 $ 8851163 Intergovernmental - 115821504 115821504 Use of money and property - (41140) (41140) Other - 21068 21068 Total revenues 513101873 717761468 214651595 Expenditures: Capital outlay 1416871547 615451663 811411884 Total expenditures 1416871547 615451663 811411884 REVENUES OVER (UNDER)EXPENDITURES (91376,674) 112301805 1016071479 Other Financing Sources(Uses): Transfers out (79,224) (79,224) - Total other financing sources(uses) (79,224) (79,224) - Net change in fund balance $ (91455,898) 1,151,581 $ 1016071479 Fund Balance: Beginning of year 1,161,781 End of year $ 2,313,362 119 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Storm Drain Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Licenses and permits $ 321000 $ (11180) $ (33,180) Charges for services 5491361 5871887 381526 Fines and forfeitures 51000 600 (41400) Use of money and property - (961) (961) Total revenues 5861361 5861346 (15) Expenditures: Current: Public works 2931980 2471835 461145 Total expenditures 2931980 2471835 461145 REVENUES OVER (UNDER)EXPENDITURES 2921381 3381511 461130 Other Financing Sources(Uses): Transfers out (340,463) (340,463) - Total other financing sources(uses) (340,463) (340,463) - Net change in fund balance $ (48,082) (11952) $ 461130 Fund Balance: Beginning of year 2531995 End of year $ 2521043 120 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Housing Authority Special Revenue Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 711000 $ 2301513 $ 1591513 Use of money and property - (51868) (51868) Other 5071101 4561505 (50,596) Total revenues 5781101 6811150 1031049 Expenditures: Current: General government 8361780 7731492 631288 Total expenditures 8361780 7731492 631288 REVENUES OVER (UNDER)EXPENDITURES (258,679) (92,342) 1661337 Other Financing Sources(Uses): Transfers in 971000 971000 - Transfers out (166,085) (166,085) - Total other financing sources(uses) (69,085) (69,085) - Net change in fund balance $ (327,764) (161,427) $ 1661337 Fund Balance: Beginning of year 5081107 End of year $ 3461680 121 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Mobilehome Admin Fee Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Charges for services $ 1201071 $ 1291650 $ 91579 Use of money and property - (191) (191) Total revenues 1201071 1291459 91388 Expenditures: Current: General government 1201071 991825 201246 Total expenditures 1201071 991825 201246 REVENUES OVER (UNDER)EXPENDITURES - 291634 291634 Net change in fund balance $ - 291634 $ 291634 Fund Balance: Beginning of period - End of period $ 291634 122 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Public Financing Authority Debt Service Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ - $ 2761668 $ 2761668 Transfers from Successor Agency - 11870 11870 Total revenues - 2781538 2781538 Expenditures: Current: General government 121000 71738 41262 Public safety 91500 71317 21183 Debt service: Principal 319151000 319151000 - Interest and fiscal charges 611921416 611991463 (71047) Total expenditures 1011281916 1011291518 (602) REVENUES OVER (UNDER)EXPENDITURES (10,128,916) (91850,980) 2771936 Other Financing Sources(Uses): Transfers in 818711713 717671272 111041441 Total other financing sources(uses) 818711713 717671272 111041441 Net change in fund balance $ (11257,203) (21083,708) $ (826,505) Fund Balance: Beginning of year 1214201334 End of year $ 1013361626 123 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Notes Payable Debt Service Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Intergovernmental $ - $ 11149 $ 11149 Use of money and property - (591) (591) Total revenues - 558 558 Expenditures: Debt service: Principal - 7931638 (793,638) Interest and fiscal charges - 5841754 (584,754) Total expenditures - 113781392 (11378,392) REVENUES OVER (UNDER)EXPENDITURES - (11377,834) (11377,834) Other Financing Sources(Uses): Transfers in 111941476 110991867 (94,609) Total other financing sources(uses) 111941476 110991867 (94,609) Net change in fund balance $ 111941476 (277,967) $ (11472,443) Fund Balance: Beginning of year 2831717 End of year $ 51750 124 City of Chula Vista Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lease Payable Debt Service Fund For the year ended June 30, 2013 Final Actual Variance with Budget Amounts Final Budget Revenues: Use of money and property $ - $ (88) $ (88) Total revenues - (88) (88) Expenditures: Debt service: Principal - 4051354 (405,354) Interest and fiscal charges - 331893 (33,893) Total expenditures - 4391247 (439,247) REVENUES OVER (UNDER)EXPENDITURES - (439,335) (439,335) Other Financing Sources(Uses): Transfers in - 7141247 7141247 Total other financing sources(uses) - 7141247 7141247 Net change in fund balance $ - 2741912 $ 2741912 Fund Balance: Beginning of year 403 End of year $ 2751315 125 OW CITY C)F CHULAVISTA 126 NON-MAJOR ENTERPRISE FUNDS 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. 127 City of Chula Vista Combining Statement of Net Position Non-Major Enterprise Funds June 30, 2013 Bayfront Transit Trolley Sewer Development Fund Station Fund DIFS Fund Services Fund Total ASSETS Current assets: Cash and investments $ 110481550 $ 121746 $ 911261931 $ 6031365 $ 1017911592 Receivables: Accounts 41749 - - 291 1405 2961154 Other 962 - 111588 - 121550 Prepaid items - - - 711588 711588 Total current assets 110541261 121746 911381519 9661358 11,171,884 Noncurrent assets: Capital assets,net 8051281 - 211011387 - 219061668 Total noncurrent assets 8051281 - 211011387 - 219061668 Total assets 118591542 121746 1112391906 9661358 1410781552 LIABILITIES Current liabilities: Accounts payable 51558 31298 - 771781 861637 Accrued liabilities 61603 - - (42,033) (35,430) Unearned revenues 8671690 91448 - - 8771138 Total current liabilities 8791851 121746 - 351748 9281345 Noncurrent liabilities: Advances from other funds - - 411651299 - 411651299 Compensated absences 211911 - - 3271178 3491089 Total noncurrent liabilities 211911 - 411651299 3271178 415141388 Total liabilities 9011762 121746 411651299 3621926 514421733 NET POSITION Net investment in capital assets 8051281 - 211011387 - 219061668 Unrestricted 1521499 - 419731220 6031432 517291151 Total net position $ 9571780 $ - $ 710741607 $ 6031432 $ 816351819 128 City of Chula Vista Combining Statement of Revenues, Expenses, and Changes in Net Position Non-Major Enterprise Funds For the year ended June 30, 2013 Bayfront Transit Trolley Sewer Development Fund Station Fund DIFS Fund Services Fund Total OPERATING REVENUES: Charges for services $ 218411619 $ - $ 6451015 $ 616541261 $ 1011401895 Other 2991219 - - 70 2991289 Total operating revenues 311401838 - 6451015 616541331 1014401184 OPERATING EXPENSES: Operations and administration 613601871 921843 - 517171312 1211711026 Depreciation 6361617 - 601000 - 6961617 Total operating expenses 619971488 921843 601000 517171312 1218671643 Operating income(loss) (31856,650) (92,843) 5851015 9371019 (21427,459) NONOPERATING REVENUES: Intergovernmental 310021783 921843 - - 310951626 Interest income (41223) - (48,616) - (52,839) Interest expense - - (62,927) - (62,927) Gain(loss)on disposal of capital assets 41749 - - - 41749 Total nonoperating revenues 310031309 921843 (111,543) - 219841609 Income(loss)before transfers (853,341) - 4731472 9371019 5571150 TRANSFERS: Transfers in - - - 4391238 4391238 Transfers out (34,750) - (250,000) (11175,724) (11460,474) Total transfers (34,750) - (250,000) (736,486) (11021,236) Net increase(decrease)in net position (888,091) - 2231472 2001533 (464,086) NET POSITION: Beginning of year 118451871 - 618511135 4021899 910991905 End of year $ 9571780 $ - $ 710741607 $ 6031432 $ 816351819 129 City of Chula Vista Combining Statement of Cash Flows Non-Major Enterprise Funds For the year ended June 30, 2013 Bayfront Transit Trolley Sewer Development Fund Station Fund DIFS Fund Services Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers $ 316351923 $ 91448 $ 6471818 $ 616921524 $ 1019851713 Cash received from other funds - - 1 - 1 Cash payments to suppliers and employees for goods and services (61355,062) (90,634) - (51762,229) (12,207,925) Other operating revenues 2991219 - - 3271248 6261467 Net cash provided(used)by operating activities (21419,920) (81,186) 6471819 112571543 (595,744) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds received from disposal of capital assets 41749 - - - 41749 Net cash provided by capital and related financing activities 41749 - - - 41749 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Intergovernmental 310021783 921843 - - 310951626 Transfer in - - - 4391238 4391238 Transfers(out) (34,750) - (250,000) (11175,724) (11460,474) Net cash provided(used)by noncapital financing activities 219681033 921843 (250,000) (736,486) 210741390 CASH FLOWS FROM INVESTING ACTIVITIES: Interest revenue (31005) - (48,616) - (51,621) Net cash(used)by investing activities (31005) - (48,616) - (51,621) Net increase in cash and cash equivalents 5491857 111657 3491203 5211057 114311774 CASH AND CASH EQUIVALENT: Beginning of year 4981693 11089 817771728 821308 913591818 End of year $ 110481550 $ 121746 $ 911261931 $ 6031365 $ 1017911592 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES: Operating income(loss) $ (31856,650) $ (92,843) $ 585,015 $ 9371019 $ (21427,459) Adjustments to reconcile operating loss to net cash provided(used)by operating activities: Depreciation 6361617 - 601000 - 6961617 Changes in operating assets and liabilities: Accounts receivable (31688) - - 381263 341575 Prepaid items - - - (71,588) (71,588) Other receivable 671302 - 21803 - 701105 Accounts payable (11657) 21209 - 681704 691256 Accrued liabilities 61603 - - (42,033) (35,430) Unearned revenue 7301690 91448 - - 7401138 Compensated absences 863 - - 3271178 3281041 Total adjustments 114361730 111657 621804 3201524 118311715 Net cash provided(used)by operating activities $ (21419,920) $ (81,186) $ 647,819 $ 11257,543 $ (595,744) 130 Internal Service Funds Internal Service Funds are used to finance and account for special activities and services performed by a designated City department for other departments on a cost reimbursement basis. Fleet Management - This fund was established to account for vehicle and equipment services provided to City departments. Revenue accruing to this fund comes from charges to City departments benefiting from services provided. r3n if 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. Stores Inventory - This fund accounts for the City's Warehouse and Central Stores operation. The source of revenue is a reimbursement of costs for items purchased by other departments. 131 City of Chula Vista Combining Statement of Net Position All Internal Service Funds June 30, 2013 Fleet Technology Workers Management Replacement Compensation Total ASSETS Current assets: Cash and investments $ 117051192 $ 21650 $ 212001309 $ 319081151 Receivables: Accounts 71146 - - 71146 Other 11988 - - 11988 Total current assets 117141326 21650 212001309 319171285 Noncurrent assets: Capital assets,net 7791645 - - 7791645 Total noncurrent assets 7791645 - - 7791645 Total assets 214931971 21650 212001309 416961930 LIABILITIES Current liabilities: Accounts payable 2991549 - - 2991549 Accrued liabilities 321454 - - 321454 Total current liabilities 3321003 - - 3321003 Noncurrent liabilities: Compensated absences 681654 - - 681654 Total noncurrent liabilities 681654 - - 681654 Total liabilities 4001657 - - 4001657 NET POSITION Net investment in capital assets 7791645 - - 7791645 Unrestricted 113131669 21650 212001309 315161628 Total net position $ 210931314 $ 21650 $ 212001309 $ 412961273 132 City of Chula Vista Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds For the year ended June 30, 2013 Fleet Technology Workers Management Replacement Compensation Total OPERATING REVENUES: Charges for services $ 314381593 $ - $ 219091830 $ 613481423 Other 2701286 - - 2701286 Total operating revenues 317081879 - 219091830 616181709 OPERATING EXPENSES: Operations and administration 316921316 362 317301058 714221736 Depreciation 3511254 - - 3511254 Total operating expenses 410431570 362 317301058 717731990 Operating income(loss) (334,691) (362) (820,228) (11155,281) NONOPERATING REVENUES: Interest income (81832) - - (81832) Gain(loss)on disposal of capital assets 821587 - - 821587 Total nonoperating revenues 731755 - - 731755 Income(loss)before transfers (260,936) (362) (820,228) (11081,526) TRANSFERS: Transfers in 3001000 - - 3001000 Total transfers 3001000 - - 3001000 Net increase(decrease)in net position 391064 (362) (820,228) (781,526) NET POSITION: Beginning of year 210541250 31012 310201537 510771799 End of year $ 210931314 $ 2,650 $ 212001309 $ 412961273 133 City of Chula Vista Combining Statement of Cash Flows All Internal Service Funds For the year ended June 30, 2013 Fleet Technology Workers Management Replacement Compensation Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from other funds $ 314711657 $ - $ 219091830 $ 613811487 Cash payments to suppliers and employees for goods and services (31577,629) (362) (31730,058) (71308,049) Other operating revenues 2701286 - - 2701286 Net cash provided(used)by operating activities 1641314 (362) (820,228) (656,276) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (703,119) - - (703,119) Proceeds received from disposal of capital assets 821587 - - 821587 Net cash(used)by capital and related financing activities (620,532) - - (620,532) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 3001000 - - 3001000 Net cash provided by noncapital financing activities 3001000 - - 3001000 CASH FLOWS FROM INVESTING ACTIVITIES: Interest revenue (51872) - - (51872) Net cash used by investing activities (51872) - - (51872) Net(decrease)in cash and cash equivalents (162,090) (362) (820,228) (982,680) CASH AND CASH EQUIVALENT: Beginning of year 118671282 31012 310201537 418901831 End of year $ 117051192 $ 2,650 $ 212001309 $ 319081151 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED(USED)BY OPERATING ACTIVITIES: Operating(loss) $ (334,691) $ (362) $ (820,228) $ (11155,281) Adjustments to reconcile operating loss to net cash provided(used)by operating activities: Depreciation 3511254 - - 3511254 Changes in operating assets and liabilities: Accounts receivable (71146) - - (71146) Other receivable 401210 - - 401210 Accounts payable 761342 - - 761342 Accrued liabilities 321454 - - 321454 Compensated absences 51891 - - 51891 Total adjustments 4991005 - - 4991005 Net cash provided(used)by operating activities $ 1641314 $ (362) $ (820,228) $ (656,276) 134 FIDUCIARY FUNDS_ AGENCY FUND The Agency Fund is used to account for assets held by the City in a trustee capacity for individuals, private organizations, other governments, and/or other funds. Special Assessment District - This fund accounts for all money collected to pay for debt services of the various assessment districts for which the City acts as paying agent but has no legal commitment or obligation. Miscellaneous Deposits - This fund accounts for all money collected to pay for certain deposits. 135 City of Chula Vista Statement of Changes in Assets and Liabilities Agency Fund For the year ended June 30, 2013 Balance Balance July 1,2012 Additions Deletions June 30,2013 Special Assessment District Assets: Cash and investments $ 7,796,044 $ 2,247,589 $ - $ 1043,633 Restricted cash and investments: Held by fiscal agents 72,918,839 1,791,789 - 74,710,628 Total assets $ 80,71403 $ 4,039,378 $ - $ 84,754,261 Liabilities: Due to bondholders $ 80,712,162 $ 4,042,099 $ - $ 84,754,261 Accounts Payable 2,72 1 - (2,72 1) - Total liabilities $ 80,71403 $ 4,042,099 $ (2,721) $ 84,754,261 Miscellaneous Deposits Assets: Cash and investments $ 13,257 $ - $ - $ 286,123 Other Receivables 19,787 - - 21,002 Total assets $ 33,044 $ - $ - $ 307,125 Liabilities: Refundable deposits $ 33,044 $ 214,922 $ (34,857) $ 212,875 Accounts Payable - - - 234 Due to City - 94,016 - 94,016 Total liabilities $ 33,044 $ 308,938 $ (34,857) $ 307,125 Total-All A2ency Funds Assets: Cash and investments $ 709,301 $ 2,247,589 $ - $ 10,329,756 Restricted cash and investments: Held by fiscal agents 72,918,839 1,791,789 - 74,710,628 Other Receivables 19,787 - - 21,002 Total assets $ 80,747,927 $ 4,039,378 $ - $ 85,061,386 Liabilities: Accounts Payable $ 2,721 $ - $ (2,721) $ 234 Due to bondholders 80,712,162 4,042,099 - 84,754,261 Due to City - 94,016 - 94,016 Refundable Deposits 33,044 214,922 (34,857) 212,875 Total liabilities $ 80,747,927 $ 4,351,037 $ (37,578) $ 85,061,386 136 STATISTICAL SECTION This part of the City of Chula Vista's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements,note disclosures,and required supplementary information says about the city's overall financial health. Table of Contents Pas!e No. Financial Trends 138-142 These schedules contain information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity 143-146 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 147-151 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 152-153 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 154-156 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. 137 00 O M N I-n 7t O\ M O 00 N 7t M M ---+ N r- O\ M O ' �O 00 M 00 -- - N 00 V 00 r- o0 r- O 7t 00 M r 7t O 00 r- 00 ^� � -Zt M 00 k. 00 O N O 00 G'� b9 b9 r- I-n t N 00 N M 7t 00 �n 00 r- O O I-n O �O N 0� N N 00 N N M 7t N M N zt O O'� N t 0'� -� ^� In N G'� r- O N �O O 00 7t 00 N G'� N r- G'� O\ b9 bS r- oo M O O 00 M G� 00 O ol� M O ' M lJ l- N l— Q\ llO O O\ 00 O 00 O IZT 7t Q\ 00 I-n M O �J M O I-n I-n �,O zt r- _ t — M I-n G� O ^� -Zt r- N -Zt N -� O M z v1 7t 00 N 00 7t I-n 00 O\ b9 b9 N O ' N �o l— (n ,zt �o to t �o 00 N (n 7 O N N r- M r- -Zt O N M N r- O\ 00 00 00 r O\ O v1 O M — Q\ 7t M M r- r- — M N r -zt O\ M r- N -Zt �6 a\ o0 -Zt O M zt r- v1 r N 00 7t 7t 00 N r- r- O\ b9 bS I1 zt O\ 00 N ' 00 O (— lzt r- 00 -� t'n - oo �O r- l— to O\ N V 1 00 r- V"1 kn ---+ O 00 O\ O\ 00 --, (n I-n r- O 00 -- M M O M r- M �10 G'� r- O G'� r- O'� O\ Q\ N O N o0 O ---+ O\ O -� O M M O\ r- 00 M N M -Zt O O N 7t 00 V1 7t r- 7t V1 r- N r- r- O\ U U O\ O O O ' 00 00 O\ O G\ 00 (n r- 00 Vl 00 O Q\ N �O 00 M l— 7t 7t al N �o 00 r- r- 00 N O 01 Q\ 00 �o r- N 00 O 00 -� r- O N O N 00 -� O1 G� N �1 al � N � �1 � c y � O � V b9 b9 -� V1 O M N (n 00 �O 00 Q Q\ 7t 00 N N O\ G\ O �o M 00 �,r a\ �6 o0 vr/� O� -- N M V 1 M O\ -- �O N �..+ O lr O �O �O M Q\ �1 M �O [� G� O �o O -� N of M (n N O r- r N M O\ (n r- N 0 av a1 a1 N oo lr� a1 N O N O\ O O O O �o M O M oo N 't O 7t r- - oo l— `p N Q\ r- al in I-n O r- al N Ol O N M r- in O O Q\ M O\ 7t N 00 00 b9 bS v1 M l— 7t (n l— l— M ---a (n 00 00 C3 N r- G\ r- N N 7t ---+ l— 00 0o ' M O -Zt al al ' �10 't M N 00 O N M M -zt - N O 7t O N O O 00 N N N O O 00 O O\ bS b9 00 - O\ 00 00 ' r- O\ 't 00 N 't O\ 7t 7t 7t 00 r- O\ -- -- M \O M V 1 to ' 00 N N 00 Ol M 00 O N o N 00 00 N M CA v1 a\ N O M N M V1 O V1 N U ti bS bS � U 4] N N Ln Ln _ v bq _ 138 't O N N o0 O 0\ V'1 00 M N I� N ' N r- �10 00 V'1 V'1 (n M M V'1 Q\ N O Q\ \O \O O 't � ---+ N — 00 N �10 't (n 't O �10 M ' M V 1 t ---i V 1 V 1 V 1 - Do l— Ol M N ' M O O O r- o0 - N Dc r- �K 00 O N M N -zi N �,o r- (n ---+ (n 0o N Q\ ---+ M 00 (n M M V 1 M 00 N o0 ~ l� O1 O V1 M + O O M �M l— �0 0\ M 7t 7t N M N Q\ N --� N 6S N ' N Q\ Q\ + N 00 00 V1 N r- 00 �,o + N N r- 't V'1 Vn 0\ (— �10 't (n �10 V1 Q\ O O M \O O N M 0\ 00 M Vn 7 00 V'1 N 00 N 00 00 v1 00 Oo O V'1 M -Zt O -zi 0\ O r- 00 V 00 (� + O O M 00 O M Vn ---+ Do \o O 0\ N N M N 00 V'1 V'1 �10 V'1 't 0O 00 M N V-1 0\ M (7� M O V'1 ---+ I� V'1 00 0\ �10 (— 0 0o l— N M CD N V'1 �0 I— 't 00 � � o � N � V 1 06 N M O N N l— l— 0\ M zt M M N --� N b9 N �,O 00 Q\ 0\ 00 Do 't G) ' ' 0\ O 0\ M o M 0o Do v1 -� V'1 Do 0\ O Q\ 00 00 N Q\ — (— 0\ (— V'1 0 ---+ N 7t r- r- Q\ r- (n \O 0\ r- 0 00 0 �10 Q\ 00 O (� V1 00 N V M �6 0\ V CD 00 CD r- �6 0\ M N r- Q\ ' N M V1 00 00 r- 0\ �10 l— 00 r- '- 7t 00 Q\ V1 v1 O O N v1 v1 r- 0\ M (n Q\ 0\ r- 7t O r- r- O r- 7t al � M M + zt N N 7t r- r- -- -- M M I N M M -- b9 N l— M r- N ' M 00 M o 0o 't o 't 't -� �10 o O O V1 0\ O - M l— o ---+ l— �,O t N G1 7t r- al Ol \O r M 00 00 �o O M (n 00 -+ �,O o + Gl M �6 oo -7t o �-6 M r Q\ M + ca U V1 M O r- 01) ' N M 0\ - M �,O (n 0 00 r- C:) o V'1 Do Do N v1 I-n N O v1 00 r- V'1 (n Q\ r- r- ~ -zi CD r- -zi 00 al �,r N 00 00 N M b9 O �10 O1 M 110 ' 00 N 7t o r- O o 7 N �10 r- M M N l— al 00 M 110 N o - "O o 110 00 �,O M M --+ �,O oo l— N V 1 (— Do N 00 7t 00 N � ---+ G\ o N O --+ t V'1 �O �O l� CD �K O r- 00 00 O V1 V Q\ M \6 r- -7t o -� 0\ o O 7t G\ N O r- 00 (n 0\ r N (n (n N O N o � 00 � o M .-� N al N 0\ G1 r- r M al � V1 0 0\ �O N 01 r- M 00 00 M - O �1 �1 N 00 �O 00 - N + ^� N l— r- N N o b9 M r- N 0\ (n O ' Q\ (n (n l— (n l— 0o 01) 0\ o O �10 Do G) N M o 00 0 --+ O N N M 0o --+ �n zt t M o ' zt t O M \O V1 V1 O 't o �n 0\ 0\ 7t 0 00 N + Q\ �,o ---+ o 0\ M O O N N -- 06 M M N 00 -- M 06 N -+ + Oo N 00 L� 0O O M '--+ (n M V1 0\ O 01) N O �o 00 00 �O t '--+ 00 �O 0) M 0� V1 O V 1 �O M M N Q\ V 1 -+ -+ 00 V 1 �O M C O CD 00 M 00 00 O 00 00 00 M O l— Do 7t M M 0O M � a A.0 o N oo O I. 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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. Source: County of San Diego Property Tax Services 144 CITY OF CHULA VISTA Principal Property Tax Payers Current Year and Nine Years Ago 2013 2004 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Rohr Inc. $ 181,597,655 1 0.87% 182,862,681 1 1.38% JPB Development 131,242,850 2 0.63% - Equity Residential 118,922,698 3 0.57% - GGP-Otay Ranch LP 118,496,741 4 0.57% - Regulo Place Apartments Invest 92,893,489 5 0.44% - Bre Properties Inc. 85,724,074 6 0.41% 87,094,112 5 0.66% Corky McMillin Homes 74,138,192 7 0.35% 127,125,453 3 0.96% Chula Vista Center LLC 74,126,926 8 0.35% 63,224,180 9 0.48% Camden USA Inc. 64,164,161 9 0.31% - Essel LP 51,942,960 10 0.25% - Otay Project LP - - 131,180,180 2 0.99% Eastlake Company LLC - - 101,282,512 4 0.77% Duke Energy South Bay LLP - - 71,909,542 6 0.54% SSR Realty Advisors/CALSTRS - - 67,773,900 7 0.51% Trimark San Miguel Ranch - - 64,362,704 8 0.49% Gateway Chula Vista LLC - - 54,642,974 10 0.41% $ 993,249,746 4.74% 951,458,238 7.19% 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 145 CITY OF CHULA VISTA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year 1 Amount of Levy Years 2 Amount of Levy 2004 1612001005 1519591723 98.52% 1161784 1610761507 99.24% 2005 1816521193 1813241623 98.24% 1061497 1814311120 98.81% 2006 2210961604 2116171022 97.83% 1621806 2117791829 98.57% 2007 2511591692 2414091063 97.02% 2091442 2416181505 97.85% 2008 2816411734 2715061299 96.04% 4601875 2719671173 97.64% 2009 2913041771 2811471698 96.05% 7651703 2819131402 98.66% 2010 2612461478 2513131706 96.45% 5381429 2518521135 98.50% 2011 2513251126 2417731002 97.82% 1341325 2419071328 98.35% 2012 2513731780 2416691632 97.22% (35,474) 2416341158 97.09% 2013 2513521454 2419821072 98.54% 1171973 2511001045 99.00% 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 146 CITY OF CHULA VISTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year Pension Tax Total Percentage Debt Ended Obligation Allocation Certificates of Governmental of Personal Per June 30 Bonds Bonds Loans Participation Activities Income l Capita l 2004 13,985,870 42,12500 7,315,971 92,92000 156,346,841 1.90% 774 2005 12,991,962 41,240,000 8,193,481 127,599,255 190,024,698 2.15% 901 2006 11,795,000 40,29500 9,811,786 144,24000 206,141,786 2.23% 937 2007 10,41500 41,27500 9,573,012 139,84500 201,108,012 2.11% 887 2008 8,82000 40,18500 19,304,342 135,04500 203,354,342 2.09% 878 2009 70000 45,83000 18,736,012 130,58000 202,146,012 2.02% 857 2010 4,98000 44,92500 17,686,144 139,70000 207,291,144 2.16% 866 2011 2,65500 43,98500 16,87600 136,060,000 199,57600 2.00% 818 2012 - 430500 19,673,344 132,29000 194,968,344 1.92% 793 2013 - -2 14,182,697 128,37500 142,557,697 1.38% 572 1 These ratios are calculated using personal income and population for the prior calendar year. 2 Tax Allocation Bonds transferred to Successor Agency and shown as fiduciary fund. Notes:Details regarding the City's outstanding debt can be found in the notes to the financial statements. 147 CITY OF CHULA VISTA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In thousands, except Per Capita) Outstanding General Bonded Debt Fiscal Year Pension Tax Percent of Ended Obligation Allocation Assessed Per June 30 Bonds Bonds Total Value 1 Capita 2004 131986 421125 561111 0.42% 278 2005 121992 411240 541232 0.35% 257 2006 111795 401295 521090 0.28% 237 2007 101415 411275 511690 0.24% 228 2008 81820 401185 491005 0.20% 212 2009 71000 451830 521830 0.21% 224 2010 41980 441925 491905 0.23% 208 2011 21655 431985 461640 0.22% 191 2012 - 431005 431005 0.20% 175 2013 - 411985 411985 0.20% 168 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds(of which,the City has none). 1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 148 CITY OF CHULA VISTA Direct and Overlapping Debt June 30,2013 2012-13 Assessed Valuation: $20,942,796,908 Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/13 %Applicable(1) Debt 6/30/13 Metropolitan Water District $ 165,085,000 0.996% $ 1,644,247 Otay Municipal Water District,I.D.No.27 6,235,000 99.995 6,234,688 Southwestern Community College District 235,884,345 50.575 119,298,507 Sweetwater Union High School District 361,299,415 60.436 218,354,914 Chula Vista City School District 64,215,000 86.933 55,824,026 Chula Vista City School District Schools Facilities Improvement Dist 1 31,000,000 80.949 25,094,190 City of Chula Vista Community Facilities Districts 205,885,000 100. 205,885,000 (2) Sweetwater Union High School District Community Facilities Districts 143,023,149 15.812-100. 133,865,124 Chula Vista City School District Community Facilities Districts 5,040,000 99.718 5,025,787 City of Chula Vista 1915 Act Bonds 22,945,015 100. 22,945,015 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 794,171,498 DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations $ 399,780,000 5.481% $ 21,911,942 San Diego County Pension Obligations 753,897,748 5.481 41,321,136 San Diego County Superintendent of Schools Obligations 17,462,500 5.481 957,120 Southwestern Community College District Certificates of Participation 1,245,000 50.575 i 629,659 Sweetwater Union High School District General Fund Obligations 37,775,000 60.436 22,829,699 Chula Vista City School District Certificates of Participation 140,585,000 86.933 122,214,758 City of Chula Vista Certificates of Participation 12893759000 100. 12893759000 Otay Municipal Water District Certificates of Participation 48,145,000 62.920 30,292,834 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 368,532,148 Less: Otay Municipal Water District Certificates of Participation 30,292,834 TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 338,239,314 OVERLAPPING TAX INCREMENT DEBT(Successor Agency): $ 41,985,000 99.038-100.% $ 41,776,968 TOTAL DIRECT DEBT $ 12893759000 TOTAL GROSS OVERLAPPING DEBT $ 1,076,105,614 TOTAL NET OVERLAPPING DEBT $ 1,045,812,780 GROSS COMBINED TOTAL DEBT $ 1,204,480,614 (3) NET COMBINED TOTAL DEBT $ 1,174,187,780 (1) The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value. (2) Excludes refunding issues dated 8/21/13. Includes issues to be refunded. (3) Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity. Ratios to 2012-13 Assessed Valuation: Total Overlapping Tax and Assessment Debt.............................. 3.79% Total Direct Debt($128,375,000)......................................... 0.61% Gross Combined Total Debt................................................... 5.75% Net Combined Total Debt....................................................... 5.61% Ratios to Redevelopment Incremental Valuation($1,143,033,852): Total Overlapping Tax Increment Debt...................................... 3.65% 149 64 64 64 64 it cz 64 64 M 00 00 O 00 rl 64 64 CJ TA 6 CNN o I's 75 4-0 &OD tQ o I.Cll cz cl� 75 0 g., cc 0 0 bb u ra cz cz OC oc U rt rq I's Qj Q.,CF U bp rq to cz cz ci 7z Y Q.)u m 0 E P. b,� th ca cz cz ci th •= Y O U cC = Q.) cz as U ct th 150 CITY OF CHULA VISTA Pledged-Revenue Coverage Last Ten Fiscal Years Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment Principal Interest Coverage 2004 1013171573 6251000 219021851 2.92 2005 819391444 8851000 218551288 2.39 2006 1014041880 9451000 217971726 2.78 2007 1119351618 9951000 217351150 3.20 2008 1317931329 110901000 119651103 4.51 2009 1317811683 8701000 117281722 5.30 2010 1318841637 9051000 210701381 4.67 2011 1318221938 9401000 210321665 4.65 2012 1019311615 9801000 119921565 3.68 2013 319491717 110201000 119481865 1.33 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. 151 a� O O O O O O O O O O U ° o � ON o � o 't o o00 tr) a� °o °O °O °O °O °O °o °o °O °O N I N M O 00 O� � Ln _ I N 00 N kn l� O kn -� M p ao 0o a1 a1 a, O a, a, O O � kn aj O � N M O O O O O O O O O O a� a� y aj Q) 00 00 U a� y r H u N N N � O rn Q 7:;U) zs p p N Q 0 0 0 0 0 0 o O y U N N 1 u � m m l� to � 01 bb to b0 kn kn 01 kn r- cC ¢ O cC O U O O O O O O O O kn r-- �0 0 0 o 00 -� 0; G r- 00 � 00 00 00 00 00 Q N M _ rn Qj ^ { Op O bb O O O M M M M M M M M M M zs n A zs d CD U O cC � O O O CD vl O a, 01 00 01 V-) -� O N 'v bO M M M M M M M ,"' p N M M M M M M M M M M U u E U N ao 0 to o V'1 01 00 U r/] ` O -810 0 0 0 0 0 0 0 0 o d S" O O N_ N O O ct O Ln N � M o � 00 a, 00 � � 0, � � N U o d o M M 01 \0 \0 '--� 00 00 W O O O 01 a1 a1 M p N V-) 01 M V-) G; O O O O bO N a� �- M V-) \O � 00 al O -� N zs O O O O O O O - - - Q M Qj O O O O O O O O O O V N N N N N N N N N N v p O 152 CITY OF CHULA VISTA Principal Employers Current Year and Nine Years Ago 2013 2004 1 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Sweetwater Union High School District 41076 7.65% n/a n/a Chula Vista Elementary School District 21788 5.23% n/a n/a Rohr Inc./Goodrich Aerospace 21469 4.63% n/a n/a Sharp Chula Vista Medical Center 11736 3.26% n/a n/a Southwestern Community College 11562 2.93% n/a n/a Wal-Mart 11242 2.33% n/a n/a Scripps Mercy Hospital Chula Vista 11139 2.14% n/a n/a Target 664 1.25% n/a n/a Costco Wholesale Corp 534 1.00% n/a n/a Aquatica San Diego 501 0.94% n/a n/a 1 2004 data is not available. "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 Chula Vista Elementary School District Southwestern Community College 153 CITY OF CHULA VISTA Full-time and Part-time City Employees by Function Last Ten Fiscal Years Full-Time and Part-time Employees as of June 30 Function 20041 2005 2006 2007 2008 2009 2010 2011 2012 2013 General government 465 193 380 324 302 272 273 258 269 282 Public safety 480 528 518 548 504 476 468 448 432 432 Public works/engr 249 335 198 237 188 181 175 155 159 164 Parks and recreation - 175 230 242 223 169 164 112 115 115 Library 182 217 252 227 196 189 73 41 76 82 Planning and building 99 91 97 83 68 63 62 54 55 49 Total 11475 11539 11675 11661 11481 11350 11215 11068 11106 11124 1 Parks and Recreation employee count included in General Government count Source:City Finance Department 154 CITY OF CHULA VISTA Operating Indicators by Function Last Ten Fiscal Years Fiscal Year Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Police: Citizen-initiated calls for service 71,000 74,106 73,075 74,277 74,192 70,051 68,601 65,186 64,885 66,319 Fire: Number of emergency calls i 8,420 9,907 n/a 14,853 14,548 14,983 11,490 11,319 12,863 12,950 Inspections n/a n/a 1,780 2,119 n/a 3,676 2,898 2,389 2,205 2,390 Public works: Street resurfacing/maintenance 2 252,789 142,864 230,598 157,903 77,507 108,745 84,276 99,978 55,398 121,428 (square feet) Parks and recreation: Number of recreation classes 1,819 1,709 1,821 2,231 2,575 2,149 2,301 2,008 1,914 2,572 Number of facility rentals 402 680 610 855 1,217 969 1,175 1,524 2,028 1,915 Library: Circulation 1,308,709 1,414,295 1,467,799 1,344,115 1,265,720 1,160,139 985,157 952,847 982,688 992,005 Attendance 1,070,560 1,121,119 1,170,168 1,148,024 1,296,245 820,243 605,979 614,841 722,310 832,975 Sewer: New connections 2,480 1,934 488 529 165 468 469 287 646 968 Average daily sewage treatment 15.8 17.0 16.9 17.0 16.8 16.5 16.2 16.3 15.9 15.7 (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 155 CITY OF CHULA VISTA Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year Fiscal Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Police: Stations 1 1 1 1 1 1 1 1 1 1 Fire: Fire stations 7 8 9 9 9 9 9 9 9 9 Public works: Streets(miles) 370.9 373.8 387.3 403.3 416.9 421.0 429.5 429.5 429.5 429.5 Streetlights 8,047 8,368 8,501 8,953 9,013 9,026 9,052 9,054 9,066 9,069 Traffic signals 188 199 220 238 253 267 267 268 269 273 Parks and recreation: Parks(acreage)1 394.6 406.4 482.8 504.1 504.1 504.1 504.1 523.1 530.7 530.7 Recreation facilities 9 9 12 12 12 11 11 11 11 11 Library: Libraries 2 2 2 2 2 2 2 2 3 3 Sewer: Sewer pipes(miles) 448.1 455.8 471.3 484.2 493.8 496.5 505.0 505.0 505.0 505.0 Storm drains(miles) 191.9 219.9 228.6 234.0 244.7 245.3 248.9 248.9 249.0 249.0 Maximum daily treatment capacity 19.8 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 (millions of gallons) i Includes community,neighborhood,special purpose,mini,and urban parks. Source:City of Chula Vista 156