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HomeMy WebLinkAboutAgenda Packet 2018_01_09I declare under penalty of perjury that 1 am employed by the City of Chula Vista in the office of the City Clerk and that I posted the document according to Brown Act Mary Casillas Salas, Mayor Patricia Aguilar, Councilmember Gary Halbert, City Manager Mike Diaz, Councilmember Glen R. Googins, City Attorney John McCann, Councilmember Kerry K. Bigelow, City Clerk Stephen C. Padilla, Councilmember Tuesday, January 9, 2018 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Diaz, McCann, Padilla and Mayor Casillas Sales PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE CONSENT CALENDAR (Items 1 - 5) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. 18-0010 APPROVAL OF MINUTES of September 19, 2017. Staff Recommendation: Council approve the minutes. City of Chula Vista Page 1 Printed on 11412018 January 9, 2018City Council Agenda ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 8.22 OF THE CHULA VISTA MUNICIPAL CODE TO EXPAND SMOKING PROHIBITIONS (SECOND READING AND ADOPTION) 18-00012.18-0001 Development Services Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the ordinance. Staff Recommendation: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 2.04.020 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO THE TIME AND PLACE OF COUNCIL MEETINGS (SECOND READING AND ADOPTION) 18-00023.18-0002 City Manager Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the ordinance. Staff Recommendation: ACCEPTANCE OF AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2017 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING AMENDMENTS TO THE FISCAL YEAR 2016/2017 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) 17-05034.17-0503 Finance Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council accept the report and adopt the resolution. Staff Recommendation: Page 2 City of Chula Vista Printed on 1/4/2018 2018-01-09 Agenda Packet Page2 January 9, 2018City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT OF $5,000 FROM SAN DIEGO GAS & ELECTRIC AND APPROPRIATING THE FUNDS TO THE MUNICIPAL FACILITIES ENERGY EFFICIENCY IMPROVEMENTS SECTION OF THE OTHER GRANTS FUND FOR THE CIVIC CENTER FAÇADE LED LIGHTING PROJECT (4/5 VOTE REQUIRED) 17-05405.17-0540 Economic Development Department Department: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15303 Class 3 (New Construction or Conversion of Small Structures) and/or Section 15301 Class 1 (Existing Facilities). Environmental Notice: Council adopt the resolution. Staff Recommendation: ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council’s jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. Page 3 City of Chula Vista Printed on 1/4/2018 2018-01-09 Agenda Packet Page3 January 9, 2018City Council Agenda ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. SELECTION OF A DATE AND TIME FOR AN OPEN MEETING TO CONDUCT INTERVIEWS OF ALL APPLICANTS WHO SUBMITTED A QUALIFIED APPLICATION DURING THE SPECIFIED APPLICATION PERIOD TO FILL ONE VACANCY ON THE GROWTH M A N A G E M E N T O V E R S I G H T C O M M I S S I O N (ENVIRONMENTAL REPRESENTATIVE) (In accordance with Chula Vista Municipal Code section 2.53.040 (D), since four or fewer qualified applications were received, all applicants will be invited to interview.) 18-00056.18-0005 City Clerk Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council select a date and time for an open meeting to conduct interviews of all applicants for the Growth Management Oversight Commission who submitted a qualified application during the specified application period. Staff Recommendation: CITY MANAGER’S REPORTS MAYOR’S REPORTS COUNCILMEMBERS’ COMMENTS CITY ATTORNEY'S REPORTS ADJOURNMENT to the Regular City Council Meeting on January 16, 2018, at 5:00 p.m., in the Council Chambers. Page 4 City of Chula Vista Printed on 1/4/2018 2018-01-09 Agenda Packet Page4 January 9, 2018City Council Agenda Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Most Chula Vista City Council meetings, including public comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channel 24 (only in Chula Vista), and online at www.chulavistaca.gov. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels) and are archived on the City's website. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. Page 5 City of Chula Vista Printed on 1/4/2018 2018-01-09 Agenda Packet Page5 City of Chula Vista Staff Report File#:18-0010, Item#: 1. APPROVAL OF MINUTES of September 19, 2017. RECOMMENDED ACTION Council approve the minutes. City of Chula Vista Printed on 1/4/2018Page 1 of 1 powered by Legistar™2018-01-09 Agenda Packet Page6 City of Chula Vista Meeting Minutes - Draft 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 Tuesday, September 19, 2017 REGULAR MEETING OF THE CITY COUNCIL CALL TO ORDER A Regular Meeting of the City Council of the City of Chula Vista was called to order at 5:04 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present:Councilmember Aguilar, Councilmember Diaz, Deputy Mayor McCann, Councilmember Padilla and Mayor Casillas Salas Also Present: Assistant City Manager Kachadoorian, City Attorney Googins, City Clerk Bigelow, and Records Manager Turner PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Councilmember Padilla led the Pledge of Allegiance. Mayor Casillas Salas called for a moment of silence for the people affected by the earthquake and hurricane in Mexico, and for those in the path of yet another hurricane. SPECIAL ORDERS OF THE DAY A.17-0413 OATHS OF OFFICE · David Wynne, Veterans Advisory Commission · Judy Gallardo, International Friendship Commission · Timothy McMillin, Sustainability Commission Acting City Clerk Bigelow administered the oaths of office to Commissioners Wynne and Gallard, and Councilmember Diaz presented them with certificates of appointment. Commissioner McMillin was not present. B.17-0368 PRESENTATION OF QUARTERLY EMPLOYEE RECOGNITION RECIPIENTS Human Resources Director Chase recognized recipients of quarterly employee awards. C.17-0384 RECOGNITION OF THE BONITA VALLEY GIRLS SOFTBALL LEAGUE FOR BRINGING HOME TWO NATIONAL CHAMPIONSHIPS Mayor Casillas Salas congratulated the Bonita Valley Girls Softball League, and Deputy Mayor McCann and Councilmember Aguilar presented the players with medals. Page 1City of Chula Vista 2018-01-09 Agenda Packet Page7 September 19, 2017City Council Meeting Minutes - Draft D.17-0385 PRESENTATION OF A PROCLAMATION TO SOUTHWESTERN COLLEGE IN CELEBRATION OF ITS 56TH ANNIVERSARY Mayor Casillas Salas read the proclamation and Councilmember Padilla presented it to the members of the board. E.17-0400 PRESENTATION BY SAN MIGUEL FIRE CHIEF CRISS BRAINARD REGARDING THE RETURN OF A STAND- ALONE SAN MIGUEL FIRE DISTRICT San Miguel Chief Criss Brainard thanked Chief Geering and presented him with an award for assisting in San Miguel Fire District's transition to a stand-alone station. CONSENT CALENDAR (Items 1 - 4) City Attorney Googins stated an amended agreement for Item 4 had been distributed to Council. 1.17-0416 APPROVAL OF MINUTES of July 25, 2017. Recommended Action: Council approve the minutes. 2.17-0120 RESOLUTION NO. 2017-178 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENTS WITH KIMLEY-HORN AND ASSOCIATES, INC.; NV5, INC.; RICK ENGINEERING COMPANY; AND T.Y. LIN INTERNATIONAL FOR CIVIL ENGINEERING CONSULTING SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROGRAM PROJECTS AND OTHER CITY PROJECTS Recommended Action: Council adopt the resolution. 3.17-0366 RESOLUTION NO. 2017-179 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FISCAL YEAR 2017-2018 CIP BUDGET TO ESTABLISH NEW CAPITAL IMPROVEMENT PROJECTS, “RMRA MAJOR PAVEMENT REHABILITATION FY2017/18” (STM-395) AND “RMRA MAJOR PAVEMENT REHABILITATION PHASE 2 FY2017/18” (STM-396), AND APPROPRIATING $1,497,670 BASED ON UNANTICIPATED REVENUE FROM THE ROAD MAINTENANCE AND REHABILITATION ACCOUNT (RMRA) IN THE GAS TAX FUND TO STM-395 (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolution. 4.17-0389 RESOLUTION NO. 2017-180 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE TENANT LEASE-GROSS BETWEEN THE CITY OF CHULA VISTA AND SOUTH BAY COMMUNITY SERVICES Recommended Action: Council adopt the resolution. Page 2City of Chula Vista 2018-01-09 Agenda Packet Page8 September 19, 2017City Council Meeting Minutes - Draft Approval of the Consent Calendar A motion was made by Deputy Mayor McCann, seconded by Councilmember Aguilar, to approve staff's recommendations on the above Consent Calendar items, headings read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS Frank McPhillips, and Sandy Sato, both Chula Vista residents, expressed concern regarding debris in their neighborhoods and the condition of their streets. Tony Bourne, expressed concern regarding issues related to homelessness. ACTION ITEMS 5.17-0411 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 9.80 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO SEX OFFENDER RESIDENCY RESTRICTIONS (FIRST READING) Deputy City Attorney McClurg presented information on the item. A motion was made by Mayor Casillas Salas, seconded by Councilmember Diaz, that the above ordinance be placed on first reading, heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, McCann, Padilla and Casillas Salas5 - No:0 Abstain:0 CITY MANAGER’S REPORTS Assistant City Manager Kachadoorian announced the I-5 and I-805 southbound lanes would be closed September 23rd through September 25th. MAYOR’S REPORTS Mayor Casillas Salas spoke regarding the BonitaFest welcoming ceremony. COUNCILMEMBERS’ COMMENTS Councilmember Diaz spoke regarding an upcoming community forum and reported that the City would be providing Hepatitis A vaccines. Deputy Mayor McCann spoke regarding BonitaFest. He expressed support for victims of the earthquake in Mexico City and hurricanes in Texas, Florida and Puerto Rico. Councilmember Padilla expressed concern for the victims of the earthquake and hurricanes. Page 3City of Chula Vista 2018-01-09 Agenda Packet Page9 September 19, 2017City Council Meeting Minutes - Draft City Attorney Googins announced an upcoming Institute for Public Strategies Forum on the topics of marijuana, homelessness and alcohol. City Attorney Googins announced that the Council would convene in closed session to discuss Items 6 and 8, listed below. He stated Item 7 would be continued to the meeting of September 26, 2017. Mayor Casillas Salas recessed the meeting at 5:56 p.m. The Council reconvened in closed session at 6:10 p.m., with all members present. CLOSED SESSION Pursuant to Resolution No. 13706 and Council Policy No. 346-03, Official Minutes and records of action taken during Closed Sessions are maintained by the City Attorney. 6.17-0371 CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4): Two (2) Cases. (This item was continued from 9/12/2017.) There was no reportable action.ACTION: 7.17-0395 CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED LITIGATION Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2): One (1) Case. Item 7 was continued to the meeting of September 26, 2017. 8.17-0383 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(1) Name of case: Chula Vista Animal Care Facility & Scripps Health v. Vernon Coston and Citizens Business Bank, San Diego Superior Court, Case No. 37-2015-37598-CU-FR-CTL Reportable action was pending finalization of settlement.ACTION: ADJOURNMENT At 7:50 p.m., Mayor Casillas Salas adjourned the meeting to the Regular City Council Meeting on September 26, 2017, at 5:00 p.m., in the Council Chambers. _______________________________ Kerry K. Bigelow, MMC, City Clerk Page 4City of Chula Vista 2018-01-09 Agenda Packet Page10 City of Chula Vista Staff Report File#:18-0001, Item#: 2. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 8.22 OF THE CHULA VISTA MUNICIPAL CODE TO EXPAND SMOKING PROHIBITIONS (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY Since 1975, the City of Chula Vista has recognized the dangers of smoking through the adoption of various policies, including Chula Vista Municipal Code (CVMC) Chapter 8.22, Regulations of Smoking in Public Places and Places of Employment. Tonight’s action will streamline such policies through amendments to CVMC 8.22 that add e-cigarettes to the definition of “smoking”, prohibit smoking on any portion of City owned property (inclusive of all parks, libraries, City buildings and associated parking lots), and restrict smoking to designated areas in affordable housing projects. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. BOARD/COMMISSION RECOMMENDATION On December 12 th and 13 th, respectively, the Housing Advisory Commission (4-0) and Healthy Chula Vista Advisory Commission (5-0) provided advisory recommendations that Council approve the proposed amendments to Chula Vista Municipal Code Chapter 8.22. DISCUSSION On January 5, 2016, the first Healthy Chula Vista Action Plan was adopted, providing a set of strategies to review, create, and evaluate policies and programs within the City and to develop community partnerships to promote wellness within our community. A key component of the plan included measures to prevent chronic diseases within our community. Since 1964 the United States Surgeon General has recognized tobacco use as a public health concern. Many federal, state, and local laws have been established over the past fifty years to limit contact with second hand smoke from tobacco products and to provide cessation programs for smokers to reduce risk of chronic diseases associated with smoking. Specifically, in Chula Vista the City of Chula Vista Printed on 1/4/2018Page 1 of 3 powered by Legistar™2018-01-09 Agenda Packet Page11 File#:18-0001, Item#: 2. smokers to reduce risk of chronic diseases associated with smoking. Specifically, in Chula Vista the following policies have been adopted over the years: ·Council Policy No. 840-01 (Ord. 1642 § 1, 1975) Prohibits smoking in confined areas used by or open to the public (e.g. city operated buildings, public meeting areas, theatres, etc.). ·Council Policy No. 840-02 (Reso. 13801, 1988) Excludes apparatus floor in all fire stations from enclosed smoking prohibition in Council Policy 840-01. ·CVMC 8.22 (Ord. 3409 § 1, 2017; Ord. 3058 § 1, 2007; Ord. 3046 § 1, 2006; Ord. 3045 § 1, 2006; Ord. 3044 § 1, 2006; Ord. 3043 § 1, 2006; Ord. 3035, 2006; Ord. 2086 § 1, 19 84; Ord. 1642 § 1, 1975) Prohibits and/or regulates smoking in public places, in or within 50 feet of any restaurant entrance, places of employment and within city parks. ·Department policies:Public Works Department (2004) - prohibits smoking in city vehicles;Police Department (2017) - establishes limitations while on-duty or in vehicles and includes e-cigarettes; and Library (2017) - prohibits smoking within 20 feet of all Library facility entrances and operable windows. ·Environmental Tobacco Smoke Control Directive (2017) Prohibits smoking within 25 feet of all building entrances and operable windows of Buildings A, B and C on City Hall campus. Cancer, respiratory issues and heart disease associated with tobacco use are among the leading preventable causes of death in the U.S. (more than 480,000 deaths per year). Diseases associated with tobacco use are top drivers of workplace productivity impairment. Secondhand smoke is estimated to cause an additional 50,000 deaths in the U.S. and exposure can increase risk of coronary heart disease and stroke by 20% to 30%. According to research, every smoker (or tobacco user) adds $5,816 in additional (indirect and direct) medical costs to employers. It is estimated that 5 -10% of the City’s workforce currently smokes and under all City insurance plans smoking cessation programs are offered at no cost. In keeping with the Healthy Community goal of the Strategic Plan, Staff is bringing forward amendments to the City’s existing policies to limit “smoking” within City owned properties and affordable housing developments. Tonight’s action will amend CVMC Chapter 8.22 to add e- cigarettes, including devices used for vaping, to the definition of “smoking,” prohibit smoking on any portion of City owned property (inclusive of all parks, libraries, City buildings, and associated parking lots), and restrict smoking to designated areas in Affordable Housing Projects to align with U.S. Department of Housing and Urban Development guidelines. This strategy was identified in the adopted Healthy Chula Vista Action Plan under the focus area of Health Care & Prevention. Other cities in the region such as Coronado, Del Mar, El Cajon and Oceanside have banned smoking in public places, including sidewalks and other right of way. While Staff is not proposing a ban on all City public right of way at this time, this step towards creating healthier places in our community demonstrates the City’s commitment to being a leader in health City of Chula Vista Printed on 1/4/2018Page 2 of 3 powered by Legistar™2018-01-09 Agenda Packet Page12 File#:18-0001, Item#: 2. policy and provides a streamlined message to all employees. Staff anticipates returning to City Council after the ordinance is in effect, with the updated Human Resource Policy that will streamline language for all City employees regarding the prohibition of smoking on City facilities and provide additional guidance to specific departments as needed, as well as repealing all previous smoking related policies. This approach will ensure that all employees are aware of smoking policies from their first day of employment and provide a cohesive message about the dangers of smoking throughout Chula Vista. The City will comply with its meet and confer obligations, as required by the Meyers-Milias Brown Act (“MMBA”), as it proceeds in this process. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This item supports Section 3.1.1 - Implement policies and programs that support a healthy community, by providing healthier options. CURRENT YEAR FISCAL IMPACT Staff costs associated with the preparation of this staff report and for the Smoking Ordinance amendments are offset by grant funds through the Centers for Disease Control’s Racial and Ethnic Approaches to Community Health (REACH Chula Vista). Costs associated with signage will be offset by budgeted funding through the Office of Sustainability. ONGOING FISCAL IMPACT None. ATTACHMENTS 1. Proposed CVMC 8.22 Amendments Staff Contact:Stacey Kurz, Development Services Department City of Chula Vista Printed on 1/4/2018Page 3 of 3 powered by Legistar™2018-01-09 Agenda Packet Page13 Attachment 1 Chula Vista Municipal Code Chapter 8.22 REGULATION OF SMOKING IN PUBLIC PLACES AND PLACES OF EMPLOYMENT Page 1/3 The Chula Vista Municipal Code is current through Ordinance 3411, passed September 26, 2017. Chapter 8.22 REGULATION OF SMOKING IN PUBLIC PLACES, AFFORDABLE HOUSING PROJECTS AND PLACES OF EMPLOYMENT Sections: 8.22.010 Purpose. 8.22.020 Definitions. 8.22.030 Prohibitions. 8.22.040 Designation of smoking areas. 8.22.050 Posting of signs. 8.22.060 Governmental agency cooperation. 8.22.070 Exceptions. 8.22.080 Enforcement and appeal. 8.22.090 Violations and penalties. 8.22.100 Education for no-smoking program. 8.22.110 Severability. 8.22.010 Purpose. Because smoking of tobacco, or any other weed or plant, is a danger to health and a cause of material annoyance, inconvenience, discomfort, and a health hazard, and in order to serve public health, safety and welfare, the declared purpose of this chapter is to prohibit the smoking of tobacco, or any weed or plant, in Public Places, Affordable Housing Projects and Places of Employment, except in designated smoking areas. (Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). 8.22.020 Definitions. “Smoke” or “Smoking” means and includes the carrying or use of a lighted pipe, or lighted cigar, or lighted cigarette or e-cigarette of any kind, including any device used for vaping, or the lighting of a pipe, cigar or cigarette of any kind. “Public Place” means any enclosed area to which the public is invited or in which the public is permitted, including, but not limited to, retail stores, retail service establishments, retail food production and marketing establishments, restaurants, theaters, waiting rooms, reception areas, educational facilities, health facilities and public transportation facilities. A private residence is not a “public place.” “Place of Employment” means any enclosed area under the control of a public or private employer which employees normally frequent during the course of employment, including, but not limited to, work areas, employee lounges, conference rooms, and employee cafeterias. A private residence is not a “place of employment.” (Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). “Affordable Housing Project” means a housing complex which is subject to income and rent restrictions recorded against the property to the benefit of the City of Chula Vista and/or the Chula Vista Housing Authority. 8.22.030 Prohibitions. A. No person shall Smoke in a Public Place or Place of Employment, except in designated smoking areas. B. No person shall Smoke in the dining area of any restaurant or establishment where people eat, including outdoor patios, outdoor bars that serve food, or any covered eating area. C. No person shall Smoke within 50 feet of any entrance to any restaurant or establishment where people eat. D. No person shall Smoke on any portion of City owned property inclusive of all parks, libraries, City buildings, and associated parking lots. . (Ord. 3409 § 1, 2017; Ord. 3058 § 1, 2007; Ord. 3046 § 1, 2006; Ord. 3045 § 1, 2006; Ord. 3044 § 1, 2006; Ord. 3043 § 1, 2006; Ord. 3035, 2006; Ord. 2086 § 1, 1984). 2018-01-09 Agenda Packet Page14 Attachment 1 Chula Vista Municipal Code Chapter 8.22 REGULATION OF SMOKING IN PUBLIC PLACES AND PLACES OF EMPLOYMENT Page 2/3 The Chula Vista Municipal Code is current through Ordinance 3411, passed September 26, 2017. E. No person shall Smoke within an Affordable Housing Project, except in designated smoking areas as defined in Section 8.22.040.B. 8.22.040 Designation of smoking areas. A. Smoking areas may be designated in public places and places of employment by proprietors or other persons in charge, except in retail stores, retail service establishments, food markets, public conveyances, theaters, auditoriums, public assembly rooms, meeting rooms, rest rooms, elevators, pharmacies, libraries, museums or galleries which are open to the public or any other place where Smoking is prohibited by the Fire Marshal or by other law, ordinance or regulation. Where smoking areas are designated, existing physical barriers and ventilation systems shall be used to minimize the toxic effect of smoke in adjacent nonsmoking areas. It shall be the responsibility of employers to provide Smoke-free areas for nonsmokers within existing facilities to the maximum extent possible, but employers are not required to incur any expense to make structural or other physical modifications in providing these areas. An employer who in good faith develops and promulgates a policy regarding Smoking and nonsmoking in the workplace shall be deemed to be in compliance with this section; provided, that a policy, which designates an entire workplace as a Smoking area, shall not be deemed a good faith policy. No public place other than the ones enumerated in CVMC 8.22.070 shall be designated as a smoking area in its entirety. B. Outdoor smoking areas may be designated within an Affordable Housing Project as long as they are not within 25 feet of any window, door, or common area amenities. C. Notwithstanding any other provision of this chapter, any facility or area may be designated in its entirety as a no-smoking area by the owner or manager thereof. (Ord. 3058 § 1, 2007; Ord. 2086 § 1, 1984). 8.22.050 Posting of signs. Signs which designate smoking or no-smoking areas established by this chapter shall be clearly, sufficiently, and conspicuously posted in every room, building, or other place so covered by this chapter. No-smoking signs shall be specifically placed in retail food production and marketing establishments, including grocery stores and supermarkets open to the public, so that they are clearly visible to persons upon entering the store, clearly visible to persons in checkout lines, and clearly visible to persons at meat and produce counters. The manner of such posting, including the wording, size, color, design, and place of posting, whether on the walls, doors, tables, counters, stands or elsewhere, shall be at the discretion of the owner, operator, manager, or other person having control of such room, building or other place, so long as clarity, sufficiency, and conspicuousness are apparent in communicating the intent of this chapter. (Ord. 2086 § 1, 1984). 8.22.060 Governmental agency cooperation. The City Manager shall annually request that governmental and educational agencies who conduct their specific business within the City of Chula Vista establish local operating procedures to cooperate and comply with this chapter. In federal, State, county and special school districts within the City of Chula Vista, the City Manager shall urge enforcement of their existing no-smoking prohibitions and request cooperation with this chapter. (Ord. 3058 § 1, 2007; Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). 8.22.070 Exceptions. A. No-smoking areas are not required in individual private offices, hotel and motel meeting and assembly rooms rented to guests, areas and rooms while in use for private social functions, psychiatric facilities, jails, stores that deal exclusively in tobacco products and accessories, and smoking lounges as that term is defined in Government Code Section 7596. B. Any owner or manager of a business or other establishment subject to this chapter may apply to the City Council for an exemption or modification of the provisions of this chapter due to unique or unusual circumstances or conditions. (Ord. 3058 § 1, 2007; Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). 2018-01-09 Agenda Packet Page15 Attachment 1 Chula Vista Municipal Code Chapter 8.22 REGULATION OF SMOKING IN PUBLIC PLACES AND PLACES OF EMPLOYMENT Page 3/3 The Chula Vista Municipal Code is current through Ordinance 3411, passed September 26, 2017. 8.22.080 Enforcement and appeal. A. The City Manager shall be responsible for compliance with this chapter when facilities which are owned, operated or leased by the City of Chula Vista are involved, including designating smoking areas, if any, when the City is the public employer. The City Manager shall provide business license applicants with copies of this chapter. B. The owner, operator or manager of any facility, business or agency shall post or cause to be posted all “No Smoking” signs required by this chapter. Owners, operators, managers or employees of covered entities shall be required to orally inform persons violating this chapter of the provisions of the chapter. The duty to inform such violator shall arise when such owner, operator, manager or employee becomes aware of the violation. C. It shall be the responsibility of employers to disseminate information covering the provisions of this chapter to employees. (Ord. 3058 § 1, 2007; Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). 8.22.090 Violations and penalties. Any person who violates any provision of this chapter by smoking in a posted “No Smoking” area, or by failing to post or cause to be posted a “No Smoking” sign required by this chapter, or by a knowing failure to inform any person who violates the provisions of this chapter, when such duty to inform arises, as set forth in CVMC 8.22.080(B), is guilty of an infraction. (Ord. 3058 § 1, 2007; Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). 8.22.100 Education for no-smoking program. The City Manager shall engage in a continuing program to inform and clarify the purposes of this chapter to citizens affected by it, and to guide owners, operators and managers in their compliance. The City shall leave the responsibility of conducting a public education campaign, regarding the health-degrading aspects of smoking, to other governmental and health agencies equipped with the needed expertise to conduct such campaign. (Ord. 3058 § 1, 2007; Ord. 1642 § 1, 1975). 8.22.110 Severability. If any provision, clause, sentence or paragraph of this chapter, or the application of this chapter to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions or application of the provisions of this chapter which can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are hereby declared to be severable. (Ord. 3058 § 1, 2007; Ord. 2086 § 1, 1984; Ord. 1642 § 1, 1975). 2018-01-09 Agenda Packet Page16 SECOND READING AND ADOPTION C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@380D6FC1\@BCL@380D6FC1.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 8.22 OF THE CHULA VISTA MUNICIPAL CODE TO EXPAND SMOKING PROHIBITIONS WHEREAS, jurisdictions are becoming increasingly aware that cities play a critical role in supporting the health and well-being of their communities; and WHEREAS, the Healthy Chula Vista Action Plan, adopted January 5, 2016, included strategies to prohibit smoking on City facilities and in affordable housing projects; and WHEREAS, smoking and exposure to cigarette smoke are associated with health risks such as the onset of diseases, including various cancers as well as cardiovascular and respiratory diseases; and WHEREAS, e-cigarettes have been found to contain a number of toxins, carcinogens and components suspected of being harmful to humans; and WHEREAS, research shows each smoker costs employers nearly $6,000 in indirect and direct medical costs per year; and WHEREAS, the City desires to follow U.S. Department of Housing and Urban Development guidelines surrounding smoking in affordable housing projects where the City has deed and rent restrictions on such property; and WHEREAS, the City, including various City Departments, have previously adopted policies to prohibit and/or regulate smoking, including, but not limited to, Council Policies Nos. 840-01 and 840-02 and an Environmental Tobacco Smoke Control Directive (adopted in 2017); and WHEREAS, in order to streamline and advance policy related to smoking exposure in the City, amendments have been proposed to Chula Vista Municipal Code Chapter 8.22. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Chula Vista Municipal Code Chapter 8.22 is hereby amended to read as set forth in Attachment A. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent 2018-01-09 Agenda Packet Page17 Ordinance Page 2 jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2018-01-09 Agenda Packet Page18 Ordinance Page 3 ATTACHMENT A Chapter 8.22 REGULATION OF SMOKING IN PUBLIC PLACES, AFFORDABLE HOUSING PROJECTS AND PLACES OF EMPLOYMENT Sections: 8.22.010 Purpose. 8.22.020 Definitions. 8.22.030 Prohibitions. 8.22.040 Designation of smoking areas. 8.22.050 Posting of signs. 8.22.060 Governmental agency cooperation. 8.22.070 Exceptions. 8.22.080 Enforcement and appeal. 8.22.090 Violations and penalties. 8.22.100 Education for no-smoking program. 8.22.110 Severability. 8.22.010 Purpose. Because smoking of tobacco, or any other weed or plant, is a danger to health and a cause of material annoyance, inconvenience, discomfort, and a health hazard, and in order to serve public health, safety and welfare, the declared purpose of this chapter is to prohibit the smoking of tobacco, or any weed or plant, in Public Places, Affordable Housing Projects, and Places of Employment, except in designated smoking areas. 8.22.020 Definitions. “Smoke” or “Smoking” means and includes the carrying or use of a lighted pipe, or lighted cigar, or lighted cigarette or e-cigarette of any kind, including any device use for vaping, or the lighting of a pipe, cigar or cigarette of any kind. “Public Place” means any enclosed area to which the public is invited or in which the public is permitted, including, but not limited to, retail stores, retail service establishments, retail food production and marketing establishments, restaurants, theaters, waiting rooms, reception areas, educational facilities, health facilities, and public transportation facilities. A private residence is not a “public place.” “Place of Employment” means any enclosed area under the control of a public or private employer which employees normally frequent during the course of employment, including, but not limited to, work areas, employee lounges, conference rooms, and employee cafeterias. A private residence is not a “place of employment.” “Affordable Housing Project” means a housing complex which is subject to income and rent restrictions recorded against the property to the benefit of the City of Chula Vista and/or the Chula Vista Housing Authority. 8.22.030 Prohibitions. A. No person shall Smoke in a Public Place or Place of Employment, except in designated smoking areas. B. No person shall Smoke in the dining area of any restaurant or establishment where people eat, including outdoor patios, outdoor bars that serve food, or any covered eating area. C. No person shall Smoke within 50 feet of any entrance to any restaurant or establishment where people eat. D. No person shall Smoke on any portion of City owned property inclusive of all parks, libraries, City buildings, and associated parking lots. 2018-01-09 Agenda Packet Page19 Ordinance Page 4 E. No person shall Smoke within an Affordable Housing Project, except in designated smoking areas as defined in Section 8.22.040.B. 8.22.040 Designation of smoking areas. A. Smoking areas may be designated in public places and places of employment by proprietors or other persons in charge, except in retail stores, retail service establishments, food markets, public conveyances, theaters, auditoriums, public assembly rooms, meeting rooms, rest rooms, elevators, pharmacies, libraries, museums or galleries which are open to the public or any other place where Smoking is prohibited by the Fire Marshal or by other law, ordinance or regulation. Where smoking areas are designated, existing physical barriers and ventilation systems shall be used to minimize the toxic effect of smoke in adjacent nonsmoking areas. It shall be the responsibility of employers to provide Smoke-free areas for nonsmokers within existing facilities to the maximum extent possible, but employers are not required to incur any expense to make structural or other physical modifications in providing these areas. An employer who in good faith develops and promulgates a policy regarding Smoking and nonsmoking in the workplace shall be deemed to be in compliance with this section; provided, that a policy, which designates an entire workplace as a smoking area, shall not be deemed a good faith policy. No public place other than the ones enumerated in CVMC 8.22.070 shall be designated as a smoking area in its entirety. B. Outdoor smoking areas may be designated within an Affordable Housing Project as long as they are not within 25 feet of any window, door, or common area amenities. C. Notwithstanding any other provision of this chapter, any facility or area may be designated in its entirety as a no- smoking area by the owner or manager thereof. 8.22.050 Posting of signs. Signs which designate Smoking or no-smoking areas established by this chapter shall be clearly, sufficiently, and conspicuously posted in every room, building, or other place so covered by this chapter. No-smoking signs shall be specifically placed in retail food production and marketing establishments, including grocery stores and supermarkets open to the public, so that they are clearly visible to persons upon entering the store, clearly visible to persons in checkout lines, and clearly visible to persons at meat and produce counters. The manner of such posting, including the wording, size, color, design, and place of posting, whether on the walls, doors, tables, counters, stands or elsewhere, shall be at the discretion of the owner, operator, manager, or other person having control of such room, building or other place, so long as clarity, sufficiency, and conspicuousness are apparent in communicating the intent of this chapter. 8.22.060 Governmental agency cooperation. The City Manager shall annually request that governmental and educational agencies who conduct their specific business within the City of Chula Vista establish local operating procedures to cooperate and comply with this chapter. In federal, State, county and special school districts within the City of Chula Vista, the City Manager shall urge enforcement of their existing no-smoking prohibitions and request cooperation with this chapter. 8.22.070 Exceptions. A. No-smoking areas are not required in individual private offices, hotel and motel meeting and assembly rooms rented to guests, areas and rooms while in use for private social functions, psychiatric facilities, jails, stores that deal exclusively in tobacco products and accessories, and smoking lounges as that term is defined in Government Code Section 7596. B. Any owner or manager of a business or other establishment subject to this chapter may apply to the City Council for an exemption or modification of the provisions of this chapter due to unique or unusual circumstances or conditions. 8.22.080 Enforcement and appeal. A. The City Manager shall be responsible for compliance with this chapter when facilities which are owned, operated or leased by the City of Chula Vista are involved, including designating smoking areas, if any, when the City is the public employer. The City Manager shall provide business license applicants with copies of this chapter. 2018-01-09 Agenda Packet Page20 Ordinance Page 5 B. The owner, operator or manager of any facility, business or agency shall post or cause to be posted all “No Smoking” signs required by this chapter. Owners, operators, managers or employees of covered entities shall be required to orally inform persons violating this chapter of the provisions of the chapter. The duty to inform such violator shall arise when such owner, operator, manager or employee becomes aware of the violation. C. It shall be the responsibility of employers to disseminate information covering the provisions of this chapter to employees. 8.22.090 Violations and penalties. Any person who violates any provision of this chapter by smoking in a posted “No Smoking” area, or by failing to post or cause to be posted a “No Smoking” sign required by this chapter, or by a knowing failure to inform any person who violates the provisions of this chapter, when such duty to inform arises, as set forth in CVMC 8.22.080(B), is guilty of an infraction. 8.22.100 Education for no-smoking program. The City Manager shall engage in a continuing program to inform and clarify the purposes of this chapter to citizens affected by it, and to guide owners, operators and managers in their compliance. The City shall leave the responsibility of conducting a public education campaign, regarding the health-degrading aspects of smoking, to other governmental and health agencies equipped with the needed expertise to conduct such campaign. 8.22.110 Severability. If any provision, clause, sentence or paragraph of this chapter, or the application of this chapter to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions or application of the provisions of this chapter which can be given effect without the invalid provision or application, and to this end, the provisions of this chapter are hereby declared to be severable. 2018-01-09 Agenda Packet Page21 City of Chula Vista Staff Report File#:18-0002, Item#: 3. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 2.04.020 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO THE TIME AND PLACE OF COUNCIL MEETINGS (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY Certain regularly scheduled City Council meetings throughout the year are canceled by Chula Vista Municipal Code section 2.04.020, including the meeting on Tuesday following the Thanksgiving holiday. Adoption of the proposed ordinance would change the policy to cancel meetings the week of Thanksgiving instead of the Tuesday following Thanksgiving. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION As required by Section 306 of the Chula Vista City Charter, regular meetings of the City Council are fixed by ordinance and are currently held on the first, second, third and fourth Tuesdays of each month. Chula Vista Municipal Code (CVMC) section 2.04.020 calls for certain regular meetings throughout the year to be cancelled. One of the regular meetings currently cancelled by CVMC section 2.04.020 is the meeting on the Tuesday following the Thanksgiving holiday. Due to holiday travel and other activities that frequently occur the week of Thanksgiving, staff recommends the Council consider cancelling meetings the week of Thanksgiving instead of the Tuesday following Thanksgiving. City of Chula Vista Printed on 1/4/2018Page 1 of 2 powered by Legistar™2018-01-09 Agenda Packet Page22 File#:18-0002, Item#: 3. Meetings that are cancelled by CVMC section 2.04.020 may be reinstituted if necessary by a majority of the Council. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Changing the meeting schedule to cancel the meeting during the week of the Thanksgiving holiday instead of the week following the Thanksgiving holiday will better facilitate public participation and support a Connected Community. CURRENT YEAR FISCAL IMPACT There is no current fiscal year impact. ONGOING FISCAL IMPACT There is no ongoing fiscal year impact. ATTACHMENTS None Staff Contact: Gary Halbert or Kerry Bigelow City of Chula Vista Printed on 1/4/2018Page 2 of 2 powered by Legistar™2018-01-09 Agenda Packet Page23 SECOND READING AND ADOPTION C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@900C803A\@BCL@900C803A.docx ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTION 2.04.020 OF THE CHULA VISTA MUNICIPAL CODE RELATING TO THE TIME AND PLACE OF COUNCIL MEETINGS WHEREAS, Section 306 of the Chula Vista City Charter requires the City Council to hold regular meetings at least once each month at such times as it shall fix by ordinance or resolution; and WHEREAS, Chula Vista Municipal Code section 2.04.020 currently calls for regular meetings to be held on the first, second, third, and fourth Tuesday of each month; and WHEREAS, Chula Vista Municipal Code section 2.04.020 calls for certain meetings throughout the year to be cancelled as a general policy of the City Council, including the meeting regularly scheduled on the Tuesday following the Thanksgiving holiday; and WHEREAS, The City Council desires to instead to cancel the meeting on the Tuesday before the Thanksgiving holiday. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Section 2.04.020 of the Chula Vista Municipal Code is hereby amended to read as follows: 2.04.020 Meetings –Time and place. Pursuant to Section 306 of the Charter, the Council shall hold regular meetings at least once each month. Such meetings shall be held in the Council chambers at 276 Fourth Avenue in the City, or in such other appropriate conference room within the Civic Center Complex, as may be determined by the Council. Regular meetings shall be held on the first, second, third, and fourth Tuesday of each month. The time of regular meetings shall be set by written resolution of the City Council adopted at a regular meeting of the City Council. Regular meetings may be cancelled in special circumstances or as necessary, in the discretion of the City Manager, or by a majority vote of the Council. When the day for any regular meeting of the Council falls on a legal holiday, no meeting shall be held on such holiday. It shall be the general policy of the City Council to cancel any meetings in the last week of June and the first week of July, the week of Thanksgiving, the week following Easter, the Tuesday following Labor Day, and the week of Christmas and New Year’s. Any of these meetings may be reinstituted if necessary by a majority of the Council. 2018-01-09 Agenda Packet Page24 Ordinance Page 2 Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Gary Halbert Glen R. Googins City Manager City Attorney 2018-01-09 Agenda Packet Page25 Section 2.04.020 of the Chula Vista Municipal Code is hereby amended to read as follows: 2.04.020 Meetings – Time and place. Pursuant to Section 306 of the Charter, the Council shall hold regular meetings at least once each month. Such meetings shall be held in the Council chambers at 276 Fourth Avenue in the City, or in such other appropriate conference room within the Civic Center Complex, as may be determined by the Council. Regular meetings shall be held on the first, second, third, and fourth Tuesday of each month. The time of regular meetings shall be set by written resolution of the City Council adopted at a regular meeting of the City Council. Regular meetings may be cancelled in special circumstances or as necessary, in the discretion of the City Manager, or by a majority vote of the Council. When the day for any regular meeting of the Council falls on a legal holiday, no meeting shall be held on such holiday. It shall be the general policy of the City Council to cancel any meetings in the last week of June and the first week of July, the Tuesday following theweek of Thanksgiving holiday, the week following Easter, the Tuesday following Labor Day, and the week of Christmas and New Year’s. Any of these meetings may be reinstituted if necessary by a majority of the Council. 2018-01-09 Agenda Packet Page26 City of Chula Vista Staff Report File#:17-0503, Item#: 4. ACCEPTANCE OF AUDITED FINANCIAL STATEMENTS FOR FISCAL YEAR ENDED JUNE 30, 2017 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING AMENDMENTS TO THE FISCAL YEAR 2016/2017 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council accept the report and adopt the resolution. SUMMARY Presented for City Council information and acceptance are the Audited Financial Statements for the fiscal year ended June 30, 2017, as prepared by the independent audit firm of Lance Soll & Lunghard LLP. The audit report submitted for the City has received an unqualified (clean) opinion from the independent audit firm. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION Pursuant to the City Charter Section 1017, an annual audit is performed of the City's financial records by an independent accounting firm. The report is included as an attachment. The firm of Lance Soll & Lunghard, LLP has examined the general purpose financial statements of the City of Chula Vista and has issued their opinion that those statements 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, 2017 and the City of Chula Vista Printed on 1/4/2018Page 1 of 4 powered by Legistar™2018-01-09 Agenda Packet Page27 File#:17-0503, Item#: 4. fund, and the aggregate remaining fund information of the City as of June 30, 2017 and the respective changes in financial position, and where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. The unassigned fund balance for the City’s General Fund (Fund 100) totaled $19.8 million as of June 30, 2017. This amount reflects 12.8% in unassigned fund balance (operating reserves) of fiscal year 2016-17 actual expenditures of $154.6 million, which includes transfers out. The unassigned fund balance increased from $17.9 million to $19.8 million when compared to June 30, 2016, representing an increase of $1.9 million. In addition to the unassigned fund balance, the General Fund ended fiscal year 2016-17 with $3.6 million in the Economic Contingency Reserve - there is no change from the prior fiscal year. This reserve was established by the City Council in fiscal year 2009 with the approval of the updated General Fund Reserve Policy. The Economic Contingency Reserve has been funded through one- time revenues and/or expenditure savings. The reserve policy sets a reserve goal of 5% for the Economic Contingency Reserve. The General Fund ended fiscal year 2016-17 with approximately 2.3% in the Economic Contingency Reserve. In order to form a basis for their opinion, Lance Soll & Lunghard LLP, evaluated the internal control procedures of the City and found no reportable conditions. This was Lance Soll & Lunghard LLP’s fourth year serving as the City’s independent auditors. The City previously contracted with Pun & McGeady, LLC. After five years of contracting with this firm, the City issued an RFP, and awarded the contract to Lance Soll & Lunghard LLP. Conducting an RFP for audit services every five years is a Governmental Finance Officers Association Best Practice. The City’s Consolidated Annual Financial Report (CAFR), is provided as Attachment 1 of this report. Budget Amendments - as part of the final review of the fiscal year 2016-17 budget, staff made accounting entries that require budget amendments. The budget amendments impact several funds; these changes addressed a change in posting actual revenues and expenditures related to debt refunding, a year end journal to distribute staff time, bank charges, and consultant services related to cash management, and the recognition of additional sales tax revenues. The actual fund impact related to these changes are reflected in the CAFR and the proposed budget amendments will address any budget overages. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site- specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. City of Chula Vista Printed on 1/4/2018Page 2 of 4 powered by Legistar™2018-01-09 Agenda Packet Page28 File#:17-0503, Item#: 4. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the Operational Excellence goal by communicating the City’s financial position for the fiscal year ending June 30, 2017 in an open and transparent manner. This transparency supports City Initiative 1.3.1. - “Foster public trust through an open and ethical government.” CURRENT YEAR FISCAL IMPACT There is no fiscal impact as a result of accepting the Fiscal Year 2016-17 Comprehensive Annual Financial Report. Approval of the resolution will result in the following budget amendments/appropriations. The net fiscal impact on the individual funds is also reflected on the table below. ONGOING FISCAL IMPACT There is no ongoing fiscal impact as result of this action. ATTACHMENTS 1. Fiscal Year 2016/17 Comprehensive Annual Financial Report City of Chula Vista Printed on 1/4/2018Page 3 of 4 powered by Legistar™2018-01-09 Agenda Packet Page29 File#:17-0503, Item#: 4. Staff Contact: David Bilby, MSBA, CPFO, Finance Director/Treasurer City of Chula Vista Printed on 1/4/2018Page 4 of 4 powered by Legistar™2018-01-09 Agenda Packet Page30 June 30, 2017 Comprehensive Annual Financial Report Year Ended 2018-01-09 Agenda Packet Page31 Comprehensive Annual Financial Report For The Fiscal Year Ended June 30, 2017 Compiled under the direction of David Bilby Director of Finance/Treasurer State of California Mayor Mary Casillas Salas City Council Patricia Aguilar Mike Diaz John McCann Stephen Padilla City Manager Gary Halbert 2018-01-09 Agenda Packet Page32        2018-01-09 Agenda Packet Page33 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION (unaudited) Letter of Transmittal ............................................................................................................................................. i Principal Officials ................................................................................................................................................ v Organizational Chart ............................................................................................................................................ vi Certificate of Achievement for Excellence in Financial Reporting .................................................................... vii FINANCIAL SECTION Independent Auditors’ 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) ...................................... 9 Basic Financial Statements: Government-Wide Financial Statements: Statement of Net Position ............................................................................................................................ 33 Statement of Activities and Changes in Net Position .................................................................................. 34 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet ....................................................................................................................................... 40 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................... 43 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................................................ 44 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .................................................................................................................. 46 Proprietary Fund Financial Statements: Statement of Net Position ..................................................................................................................... 48 Statement of Revenues, Expenses and Changes in Fund Net Position.......................................................................................................................................... 49 Statement of Cash Flows ..................................................................................................................... 50 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ..................................................................................................... 51 Statement of Changes in Fiduciary Net Position .................................................................................. 52 Notes to Basic Financial Statements ............................................................................................................ 55 2018-01-09 Agenda Packet Page34 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS (CONTINUED) Page Number FINANCIAL SECTION (Continued) Required Supplementary Information: Budgetary Comparison Schedule by Department - General Fund .............................................................. 117 Budgetary Comparison Schedule - Sundry Grants Special Revenue Fund ................................................ 118 Budgetary Comparison Schedule - Housing Successor Agency Special Revenue Fund ............................ 119 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous .................................. 120 Schedule of Plan Contributions - Miscellaneous ........................................................................................ 121 Schedule of Changes in Net Pension Liability and Related Ratios - Safety ............................................... 122 Schedule of Plan Contributions - Safety ..................................................................................................... 123 Schedule of Funding Progress - Other Post-Employment Benefits ............................................................ 124 Notes to Required Supplementary Information ................................................................................................. 125 Supplementary Information: Non-Major Governmental Funds: Combining Balance Sheet ................................................................................................................... 128 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 134 Budgetary Comparison Schedule by Expense Category: General Fund ....................................................................................................................................... 140 Sundry Grants Special Revenue Fund ................................................................................................. 141 Housing Successor Agency Special Revenue Fund ............................................................................ 142 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual: Transportation Grants Special Revenue Fund ..................................................................................... 143 Parking Meter Special Revenue Fund ................................................................................................. 144 Traffic Safety Special Revenue Fund .................................................................................................. 145 Traffic Signal Special Revenue Fund ................................................................................................... 46 Storm Drain Special Revenue Fund .................................................................................................... 147 Town Center I Special Revenue Fund ................................................................................................. 148 Open Space Districts Special Revenue Fund ...................................................................................... 149 Housing Programs Special Revenue Fund .......................................................................................... 150 Housing Authority Special Revenue Fund .......................................................................................... 151 Transportation Sales Tax Special Revenue Fund ................................................................................ 152 Mobile Park Fee Special Revenue Fund.............................................................................................. 153 Public Education and Government Fee Special Revenue Fund .......................................................... 154 Utility Tax Settlement Special Revenue Fund .................................................................................... 155 V2 Pub Benefit Contribution Fund ...................................................................................................... 156 Park Acquisition Development Capital Project Fund .......................................................................... 157 Residential Construction tax Capital Project Fund .............................................................................. 158 Highway Safety ................................................................................................................................... 159 Bicycle Facility ................................................................................................................................... 160 Assessment District Improvement Capital Project Fund ..................................................................... 161 Development Impact Capital Project Fund ......................................................................................... 162 Transportation Partnership Fund ......................................................................................................... 163 Other Transportation Program Capital Project Fund ........................................................................... 164 Capital Projects Fund .......................................................................................................................... 165 Notes Payable Debt Service Fund ....................................................................................................... 166 Leases Payable Debt Service Fund ...................................................................................................... 167 City Debt Service Fund ....................................................................................................................... 168 Public Financing Authority Debt Service Fund .................................................................................. 169 Municipal Financing Authority Debt Service Fund ............................................................................ 170 2018-01-09 Agenda Packet Page35 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2017 TABLE OF CONTENTS (CONTINUED) Page Number FINANCIAL SECTION (Continued) Non-Major Proprietary Funds: Combining Statement of Net Position ................................................................................................. 171 Combining Statement of Activities and Changes in Net Position ....................................................... 172 Combining Statement of Cash Flows .................................................................................................. 173 Internal Service Funds: Combining Statement of Net Position ................................................................................................. 174 Combining Statement of Activities and Changes in Net Position ....................................................... 175 Combining Statement of Cash Flows .................................................................................................. 176 Fiduciary Funds: Combining Statement of Net Position – All Agency Funds ................................................................ 177 Combining Statement of Changes in Assets and Liabilities – All Agency Funds ............................... 178 STATISTICAL SECTION Net Position by Component - Last Ten Fiscal Years .................................................................................. 181 Changes in Net Position - Last Ten Fiscal Years ....................................................................................... 182 Fund Balances, Governmental Funds – Last Ten Fiscal Years .................................................................. 184 Changes in Fund Balances, Governmental Funds – Last Ten Years .......................................................... 185 Assessed Value and Estimated Actual Value of Taxable 189 Property - Last Ten Fiscal Years ............................................................................................................. 186 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ......................................................... 187 Principal Property Tax Payers - Current Year and Ten Years Ago ............................................................ 188 Property Tax Levies and Collections - Last Ten Fiscal Years .................................................................... 189 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .................................................................... 190 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years ....................................................... 191 Statement of Direct and Over Lapping Bonded Debt ................................................................................. 191 Legal Debt Margin Information - Last Ten Fiscal Years ........................................................................... 193 Pledged-Revenue Coverage - Last Ten Fiscal Years .................................................................................. 194 Demographic and Economic Statistics - Last Ten Calendar Years ............................................................ 195 Principal Employers - Current Year and Ten Years Ago ........................................................................... 196 Full-time-Equivalent City Government Employees by Function/Program - Last Ten Fiscal years ......................................................................................... 197 Operating Indicators by Function/Program - Last Ten Fiscal Years .......................................................... 198 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ...................................................... 199 2018-01-09 Agenda Packet Page36        2018-01-09 Agenda Packet Page37 2018-01-09 Agenda Packet Page38 2018-01-09 Agenda Packet Page39 2018-01-09 Agenda Packet Page40 2018-01-09 Agenda Packet Page41 v City of Chula VistaList of City OfficialsAs of June 30, 2017 City Council Mary Casillas Salas Mayor John McCann Deputy Mayor Patricia Aguilar Councilmember Mike Diaz Councilmember Stephen Padilla Councilmember Administration Gary Halbert City Manager Maria Kachadoorian Assistant City Manager Kelley Bacon Deputy City Manager Glen R. Googins City Attorney Donna Norris City Clerk Department Heads David Bilby Director of Finance/Treasurer Kelly Broughton Director of Development Services Eric Crockett Director of Economic Development Jim Geering Fire Chief Courtney Chase Director of Human Resources Edward Chew Director of Information Technology Services Betty Waznis Director of Library Roxana Kennedy Chief of Police Richard Hopkins Director of Public Works Kristi McClure Huckaby Director of Recreation 2018-01-09 Agenda Packet Page42 vi Organizational Chart CITIZENS OF CHULA VISTA Mayor City Council Citizen Advisory Commissions Citizen Advisory Boards City Manager City Attorney City Clerk Deputy City Manager Assistant City Manager Police Human Resources Library Public Works Fire Info & Tech Services Recreation Development Services Animal Care Facility Housing Authority Successor Agency to RDA Finance Economic Development Communications 2018-01-09 Agenda Packet Page43 2018-01-09 Agenda Packet Page44        2018-01-09 Agenda Packet Page45 INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council City of Chula Vista, California Report on the 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 City of Chula Vista, California, (the City) as of and for the year ended June 30, 2017, 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 from 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 entity’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 entity’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. 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms 2018-01-09 Agenda Packet Page46 To the Honorable Mayor and Members of the City Council City of Chula Vista, California Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California, as of June 30, 2017, 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 management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, the schedules of changes in the net pension liability and related ratios, the schedules of plan contributions, and the schedule of funding progress 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 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 nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and 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. 2018-01-09 Agenda Packet Page47 To the Honorable Mayor and Members of the City Council City of Chula Vista, California Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2017 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 effectiveness of the City’s 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. Brea, California December 28, 2017 2018-01-09 Agenda Packet Page48        2018-01-09 Agenda Packet Page49 INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of 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, 2017, 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 28, 2017. 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. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. 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 entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the following deficiencies to be material weaknesses: 203 N. Brea Blvd., Suite 203 Brea, CA 92821 Phone: 714.672.0022 An Association of Independent Accounting Firms 2018-01-09 Agenda Packet Page50 To the Honorable Mayor and Members of the City Council City of Chula Vista, California 2017 – 1: Capital Assets We noted certain internal service fund capital costs were expensed in fiscal year 2015-16 and capitalized in the current fiscal year. The assets should have been capitalized in fiscal year 2015-16, resulting in a restatement of net position in the amount of $90,483. We noted certain vehicle related costs incurred in fiscal year 2017-18, were accrued for and capitalized in the current fiscal year, however, the vehicles were not delivered until fiscal year 2017-18. An adjustment of $93,994 was made to correct the error. We noted the Successor Agency of the Former Chula Vista RDA sold two land parcels in fiscal year 2013-14 and the disposal of the land and related loss on disposal was never recorded in the general ledger until the current fiscal year. As a result, net position was restated in the amount of $1,448,110. Management Response: The capital cost and vehicle cost recordation and asset recognition variances were isolated events, during which significant staff turnover and the implementation of a new Enterprise Resource Planning (ERP) System were occurring. With the establishment of the new ERP’s purchasing, accounts payable, and capital asset tracking modules operational, these issues will be rectified. Typically, Management has advised the auditors of omitted entries from prior fiscal years, as evidenced by the land and building assets recordation project initiated by Management. These two Successor Agency parcels represent an oversight. 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. We consider the following deficiencies to be significant deficiencies: 2017 – 2: Fair Market Value Adjustment to Cash and Investments We noted cash and investments were misstated primarily due to the fair market value adjustment booked by the City. The primary error was due to the City omitting the booking of the fair market value loss of $376,726 on the SD Investment in County Pool. Overall, cash and investments were overstated by $335,987, and as a result, an adjustment was made to correct the error. Management Response: This singular and isolated event occurred as a result of Management utilizing a new investment tool, due to investment limitations related to a bond issue covenant. The oversight has been corrected and will not be duplicated going forward. In the future, Management will strengthen its efforts in communicating changes such as this one to staff, and confirm sufficient understand is achieved. 2017 – 3: Payroll Expenses and Related Liabilities We noted payroll expenses and related liabilities were misstated due to a unique transaction occurring during the current fiscal year. The City made an annual lump sum payment of its employer contributions for fiscal year 2016-17. Included in the recorded expense was the employer contributions from the last pay period in fiscal year 2015-16 for which the contributions related to both fiscal year 2015-16 and 2016-17. A portion of the employer contributions from this pay period was recorded in fiscal year 2016-17 twice, once when the payroll for the pay period was recorded and once during the booking of the lump sum payment. Payroll expenses and related liabilities were overstated by $506,452, and as a result, an adjustment was made to correct the error. Management Response: In an effort to save annual pension expense, Management exercised a pension prepayment option, for the first time in this instance. While the savings were achieved, going forward, closer inspection of accounting entries will be made to prevent this issue in the future. 2018-01-09 Agenda Packet Page51 To the Honorable Mayor and Members of the City Council City of Chula Vista, California Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from 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 the following instances of noncompliance or other matters that are required to be reported under Government Auditing Standards: 2017 – 4: Restatement Due to Previously Unrecorded Land In fiscal year 2016-17, the City learned it was the rightful owner of several land parcels which were not previously recorded in its records. A land appraisal was performed, and for the land parcels with material appraised values, the City deflated these values using the S&P Case Shiller San Diego Home Price Index 1/1987 – 7/2017. The acquisition date used to determine the appropriate index was obtained based on all information available to the City. As a result net position of governmental activities was restated in the amount of $359,893,672. City’s Response to Findings The City’s response to the findings identified in our audit was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. 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. Brea, California December 28, 2017 2018-01-09 Agenda Packet Page52        2018-01-09 Agenda Packet Page53 CITY OF CHULA VISTA MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the City of Chula Vista, we are presenting the readers of this annual financial report a narrative overview and analysis of the financial activities of the City of Chula Vista for the fiscal year ended June 30, 2017. 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, 2017 by $1,343.3 million (net position). Of this amount, ($150.5) million was reported as “unrestricted net position.” This figure represents an increase in unrestricted net position of $ 4.1 million. The large negative unrestricted net position is primarily attributed to net pension liabilities, as required by Governmental Accounting Standards Board (GASB) Statements related to recognition of net pension liabilities within the City’s financial statements. 2. Total unrestricted net position is $0.3 million lower for governmental activities than last fiscal year, a decrease of .12%. For business type activities, unrestricted net position is $4.4 million higher than the previous year, a 6.5% increase. 3. The City’s total net position increased by $560.8 million in fiscal year 2017. The net position of governmental activities increased by $361.4 million, while the net position of the business type activities increased by $199.4 million. 4. The City’s governmental funds reported combined ending fund balances of $157.2 million, an increase of $4.9 million, or 3.2%. 5. Total citywide liabilities increased by $33.9 million. Liabilities for governmental activities increased by $28.8 million and business-type activities increased by $5.1 million. 6. The City’s total long-term debt obligations had a net decrease of $2.4 million or 1.8% during fiscal year 2017. The decrease reflects principal payments of $6.1 million, and refunding of $470 thousand offset by a new capital lease for 2 Pierce Arrow CT Triple Combination Pumper Fire Engines of $1.3 million and amortization of bond premium/discount of $2.9 million as a result of debt refinancing. 7. On November 8, 2016, the City’s voters approved Measure P, a $0.50 sales tax to fund infrastructure improvements throughout the City. This sales tax will be collected for 10 years, and is estimated to provide approximately $16.0 million annually. In fiscal year 2016-17, $3.9 million was collected. 2018-01-09 Agenda Packet Page54 OVERVIEW OF FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains required supplementary information (RSI) as well as other supplemental financial information. Government-Wide Financial Statements The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business. They are comprised of the Statement of Net 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 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. 2018-01-09 Agenda Packet Page55 Fund Financial Statements and Major Component Unit Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. The fund financial statements provide detailed information about each of the City’s most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all Non-major Funds summarized and presented in a single column. Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financial capacity. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement. As of Fiscal Year 2016-17, the City numerous governmental funds within the adopted budget. However, within this document, the funds are summarized as follows 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 is 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. FundCategory MajorFunds NonͲMajor Funds Total General Fund 1 0 1 Special Revenue 2 14 16 Capital Project 2 8 10 DebtService 325 Permanent 000 TotalPresented 8 24 32 2018-01-09 Agenda Packet Page56 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 vehicle fleet, information systems, and workers’ compensation 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 $1,343.3 million at the close of the fiscal year ending June 30, 2017. This is a net increase of $560.8 million when compared to the prior year. There was an increase in the City’s governmental funds of $361.4 million and an increase in business-type activities of $199.4 million. A summary schedule follows which shows the components that make up the City’s net position at June 30, 2017 and 2016, and both years reflect GASB 68 & 71 compliance. 2018-01-09 Agenda Packet Page57 City of Chula Vista Net Position Fiscal Year Ending June 30 As the table above illustrates, an amount of $1,363.1 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. A portion of the City’s net position is restricted – $130.7 million or 9.73% – and represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position – ($150.5 million) or (11.2%) – reflects the recordation of net pension liability required per requisite GASB statements. At the end of the fiscal year, the City was able to report overall positive balances in all three categories of net position for business-type activities, however both the government as a whole, as well as the separate governmental activities show negative unrestricted net position as a result of the required recognition of net pension liability, per GASB statements. 2017 2016 2017 2016 2017 2016 Current Assets 168,677,989$   162,160,931$   106,748,606$  100,751,719$  275,426,595$     262,912,650$          Non‐Current Assets 7,553,881          22,933,858        (1,054,835)       (180,358)           6,499,046            22,753,500               Capital  Assets 1,147,395,093  794,582,467     331,199,513    135,989,851    1,478,594,606    930,572,318            Total Assets 1,323,626,963  979,677,256     436,893,284    236,561,212    1,760,520,247    1,216,238,468         Deferred outflow of resources 61,912,385        23,426,528        5,432,012         2,032,642         67,344,397          25,459,170               Total Deferred Outflows 61,912,385        23,426,528        5,432,012         2,032,642         67,344,397          25,459,170               Current Liabilities 25,816,050        40,738,517        2,143,084         1,430,773         27,959,134          42,169,290               Non‐Current Liabilities 414,896,571     371,186,031     33,134,868      28,731,695      448,031,439        399,917,726            Total Liabilities 440,712,621     411,924,548     35,277,952      30,162,468      475,990,573        442,087,016            Deferred inflows of resources 7,653,312          15,370,360        887,450            1,667,608         8,540,762            17,037,968               Total Deferred Inflows 7,653,312          15,370,360        887,450            1,667,608         8,540,762            17,037,968               Net Position Net Investment in Capital  Assets 1,031,902,782  672,940,012     331,199,513    135,989,851    1,363,102,295    808,929,863            Restricted 128,114,370     125,439,323     2,593,403         2,803,451         130,707,773        128,242,774            Unrestricted (222,843,737)    (222,570,459)    72,366,978      67,970,476      (150,476,759)      (154,599,983)           Total Net Position 937,173,415$   575,808,876$   406,159,894$  206,763,778$  1,343,333,309$  782,572,654$          Governmental Activities Business‐Type  Activities Total 2018-01-09 Agenda Packet Page58 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. City of Chula Vista Summary of Changes in Net Position Fiscal Year Ending June 30 2017 2016 2017 2016 2017 2016 Revenues: Program Revenues: Charges for Services 67,481,800$        55,809,354$        43,692,874$        42,561,453$        111,174,674$      98,370,807$         Operating Grants & Contributions 22,751,556  22,416,276  ‐   306,884  22,751,556   22,723,160     Capital Grants & Contributions 5,619,731    7,143,130    ‐   5,619,731     7,143,130       General Revenues: Property Taxes 53,248,196  50,136,856  ‐   53,248,196   50,136,856     Sales Taxes 36,469,033  33,317,380  ‐   36,469,033   33,317,380     Franchise Taxes 11,515,850  11,709,977  ‐   11,515,850   11,709,977     Utility User Taxes 5,786,326    5,844,248    ‐   5,786,326     5,844,248       Business License Taxes 1,558,887    1,538,595    ‐   1,558,887     1,538,595       Transient Occupancy Taxes 3,650,442    3,827,244    ‐   3,650,442     3,827,244       Property Transfer Taxes 1,176,358    1,357,573    ‐   1,176,358     1,357,573       Construction Taxes 413,914  185,625  ‐   413,914        185,625          Investment Earnings 2,954,403    6,233,144    322,527  1,357,938   3,276,930     7,591,082       Miscellaneous 1,677,271    1,034,027    198,847,750   524,616  200,525,021        1,558,643       Gain (Loss) Disposal of Capital Assets 8,970   336,661  115,703  ‐   124,673        336,661          Total Revenues 214,312,737   200,890,090 242,978,854 44,750,891  457,291,591   245,640,981   Expenses: General Government 35,375,230$        25,564,824$        35,375,230$        25,564,824$         Public Safety 94,716,683  87,749,418  94,716,683   87,749,418     Community Development 1,552,750    1,974,046     Community Services 14,990   5,632   14,990           5,632     Public Works 68,885,918  67,910,401  68,885,918   67,910,401     Parks and Recreation 6,875,635    6,834,240    6,875,635     6,834,240       Library 5,018,878    3,997,677    5,018,878     3,997,677       Interest on Long‐Term Debt 4,673,047    6,073,434    4,673,047     6,073,434       Sewer Funds ‐   32,179,875   25,234,891   32,179,875   25,234,891     Transit ‐   39,594   86,512   39,594           86,512   Sewer DIFs ‐   8,305   1,146,838   8,305   1,146,838       Development Services Fund ‐   6,655,654   5,741,600   6,655,654     5,741,600       Chula Vista Mini Golf Course 27,092   27,092            Chula Vista Elite Athlete Training Ctr 449,028  449,028         Total Expenses 217,113,131   200,109,672 39,359,548  32,209,841  254,919,929   230,345,467   Increase/(Decrease) in Net Position Before  Transfers (2,800,394)        780,418    203,619,306     12,541,050       200,818,912        13,321,468      Transfers 4,180,778    2,799,555    (4,180,778)  (2,799,555)  ‐  ‐    Change in Net Position 1,380,384  3,579,973  199,438,528 9,741,495  200,818,912   13,321,468    Net Position, Beginning of Year ‐ Restated 935,793,031    572,228,903    206,721,366   197,022,283   1,142,514,397     769,251,186  Net Position, End of Year 937,173,415$     575,808,876$    406,159,894$    206,763,778$    1,343,333,309$      782,572,654$     Governmental Activities Business‐Type Activities Total 2018-01-09 Agenda Packet Page59 Further analysis is provided within the governmental and business-type activity sections below. Governmental Activities Governmental activities increased the City’s net position by $1.4 million, partially offsetting the City’s total decrease in net position due to GASB 68 & 71 related liabilities and restatements of beginning net position. The City received a total of $95.9 million in program revenues from governmental activities in fiscal year 2016-17, an increase of $10.5 million from the previous year. A comparison of the cost of services by function for the City’s governmental activities is shown in the chart below, along with the program revenues used to cover the net expenses of the governmental activities. Total program revenues from governmental activities were $95.9 million in fiscal year 2016-17. 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. A discussion of the different Program Revenue categories and its components follows. 2018-01-09 Agenda Packet Page60 Charges for Services had a net increase of $11.7 million for governmental activities when compared to the previous year. Changes by service category are summarized in the table below. Charges for Services As of June 30 Operating Grants and Contributions for governmental activities had a net increase of $0.3 million from the previous fiscal year. Changes by service category are summarized in the table below. Operating Grants and Contributions As of June 30 Capital Grants and Contributions for governmental activities had a net decrease of $1.5 million from the previous fiscal year. Changes by service category are summarized in the table below. Capital Grants and Contribution As of June 30 ServiceCategory 2017 2016 Increase/ (Decrease) General Government 12,317,921$6,468,756$5,849,165$ PublicSafety 11,997,22111,764,603232,618 CommunityDevelopment 771,603730,19741,406 PublicWorks 32,598,19924,218,7338,379,466 ParksandRecreation 8,221,01910,683,649(2,462,630) Library 1,575,8371,943,416(367,579) TotalChargesforServices 67,481,800$55,809,354$11,672,446$ ServiceCategory 2017 2016 Increase/ (Decrease) General Government 4,799,275$4,677,233$122,042$ PublicSafety 8,473,5347,668,902804,632 PublicWorks 9,478,74710,070,141(591,394) TotalChargesforServices 22,751,556$22,416,276$335,280$ ServiceCategory 2017 2016 Increase/ (Decrease) General Government 400,952$335,587$65,365$ PublicSafety 526,4741,616,414(1,089,940) CommunityServices 75,00054,29020,710 PublicWorks 4,617,3055,136,839(519,534) TotalChargesforServices 5,619,731$7,143,130$(1,523,399)$ 2018-01-09 Agenda Packet Page61 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 $118.5 million in fiscal year 2016-17. The largest percentage of general revenues received during the year for governmental activities were taxes of $113.8 million, which included Property Taxes of $53.2 million and Sales Taxes of $36.5 million. The City’s General Revenues increased as a whole by $3.3 million when compared to the prior fiscal year. While most of the revenue categories increased moderately from last year, there were significant increases in Property Taxes, Sales Taxes, Construction Taxes, and Miscellaneous Revenues. One revenue category, Investment Earnings did decrease materially from the prior year. These significant changes are described in detail below. General Revenues As of June 30 The increase in property tax revenue can be attributed to several factors combining favorably for FY17: an increase in total assessed property value; an increase in development, as evidenced by an increase in both residential and non-residential building permits; and a decrease county-wide in both Proposition 8 parcels and total number of foreclosures. The increase in sales tax revenue is largely attributable to an increase in consumer confidence, with increased spending in casual dining, new cars, electronics, and appliances. Another contributor to the year-over-year sales tax revenue growth is a higher allocation from the countywide use tax pool as receipts expanded due to the increasing prevalence of online shopping the abnormal $643 thousand increase in miscellaneous revenues. The decrease in Investment Earnings was largely due to the effect of fair market valuation measurements being applied to the City’s portfolio as of June 30. This measurement is required per GASB requirements, however actual reductions are only realized if the City’s investments are liquidated, and given that the City typically holds investments to maturity, this effect is unlikely to be realized in the future and was not realized at the end of fiscal year. 2017 2016 Increase/ (Decrease) PropertyTaxes 53,248,196$50,136,856$3,111,340$ Sales Taxes 36,469,03333,317,3803,151,653 FranchiseTaxes 11,515,85011,709,977(194,127) UtilityUser Taxes 5,786,3265,844,248(57,922) BusinessLicenseTaxes 1,558,8871,538,59520,292 TransientOccupancyTaxes 3,650,4423,827,244(176,802) PropertyTransfer Taxes 1,176,3581,357,573(181,215) ConstructionTaxes 413,914185,625228,289 InvestmentEarnings 2,954,4036,233,144(3,278,741) Miscellaneous 1,677,2711,034,027643,244 TotalGeneralRevenues 118,450,680$115,184,669$3,266,011$ 2018-01-09 Agenda Packet Page62 Total governmental activity type expenses were $217.1 million in fiscal year 2016-17. The largest expenses were incurred for Public Safety, Public Works and General Government. These three activities combined account for 91.6% of all general activity expenses. These expenses do not include capital outlays, which are reflected in the City’s capital assets. Business Type Activities Net position for business-type activities was $406.2 million, an increase of $199.4 million from the prior fiscal year. The reason for the nearly doubling of business-type net position was the acquisition of the CV Elite Athlete Training Center with contribution $197.7 million. Overall expenses for the business-type activities showed a $7.1 million increase over the previous year. The increase is largely attributable to Sewer related activities (6.9 million). Total program revenues for business-type activities were $43.7 million and are composed primarily of sewer fees ($37.4 million) and development fees ($7.3 million). Total expenses for the business-type activities were $39.4 million and were for expenses related to Sewer ($32.2 million) and processing of development permits and plans ($6.7 million). 2018-01-09 Agenda Packet Page63 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 $150.3 million in revenues and $150.2 million in expenditures, resulting in expenditures exceeding revenues by the amount of $30 thousand. After accounting for net other financing sources of $4.4 million, General Fund fund balance increased by $4.5 million. Total fund balance at June 30, 2017 was $41.8 million, composed of $52.2 million in assets combined with $5.5 million in liabilities and $4.8 million in deferred inflows of resources. Total fund balance included $7.4 million of nonspendable or restricted fund balance, which represents that portion of fund balance that is not available for appropriation. Restricted fund balance 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. As of June 30, 2017, there is no restricted fund balance in the General Fund. Committed fund balance totaled $5.9 million. This portion of fund balance includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, and remains binding unless removed in the same manner. Assigned fund balance, totaling $8.5 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 $20.0 million, this is the portion of fund balance that is available for appropriation for any purpose. Sundry Grants Fund – The Sundry Grants fund is to account for miscellaneous grants such as: Supplemental Law Enforcement Services, California Library Services Act, Public Library Act, Asset Seizure, Local Law Enforcement Block Grants, federal library grants, waste management and recycling, energy conservation, parks and recreation, social service grants, Gayle McCandliss memorial cultural arts, federal assistance, CDBG program income projects, HOME project, and Community Development Block grants. 2018-01-09 Agenda Packet Page64 The Sundry Grants Fund had total revenues of $14.6 million and expenditures of $15.3 million, resulting in expenditures over revenues in the amount of $0.6 million. The Sundry Grants Fund equity decreased by $1.3 million for the fiscal year, after accounting for net other financing uses of $0.7 million. Total fund balance at June 30, 2017 was $3.0 million, composed of restricted 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 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 $1.2 million composed primarily of interest earnings, property rentals and loan repayments from affordable housing projects. Housing expenditure activities totaled $0.1 million, resulting in a fund equity increase of $1.0 million. Total fund balance as of June 30, 2017 was $9.9 million composed entirely of restricted fund balance. Park Acquisition Development Fund - This fund was established as a depository for fees collected from developers for the purpose of providing park facilities directly benefiting and serving residents of the regulated subdivision. The Parkland Acquisition and Development in- lieu fee was adopted by the City to acquire neighborhood and community parkland and to construct park facilities. Total revenues for this fund totaled $0.6 million with $0.5 million attributable to building permit fees for new development. Expenditures totaled $0.9 million reflecting capital improvement project staff time reimbursements. Total fund equity decreased by $0.4 million for the year. As of June 30, 2017, the fund balance totaled $43.0 million, comprised primarily of cash ($34.0 million) and advances to other funds ($9.2 million). All of the $43.0 million fund balance is designated as restricted. Development Impact Fee Fund – This fund was established as a depository for various development impact fees (DIFs). 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 $8.3 million attributable to building permit fees for new development. Expenditures totaled $3.4 million, composed primarily of capital expenditures on Telegraph Canyon Drainage, Transportation DIF, and the Western Transportation DIF, which combined for $3.0 million. Total fund equity decreased by $0.1 million for the year. As of June 30, 2017, this fund had a fund balance totaling $40.8 million, comprised of mostly cash ($33.9 million) and advances to other funds ($8.2 million), offset partially by $0.1 million in liabilities with the remainder of $1.2 million in unavailable revenues. Unavailable revenue accounts for the prepayment of development impact fees before the actual building permit has been applied for. Revenue will be available once the permit application has been granted. 2018-01-09 Agenda Packet Page65 City Debt Service Fund – This fund was established to account for the principal and interest payments on City interfund debt. Total fund balance as of June 30, 2017 was negative $19.0 million, composed entirely of unassigned fund balance. The fund balance decreased by $0.2 million in fiscal year 2016-17 due to a restatement of interfund loan balances. Public Financing Authority Fund – This fund was established to account for the principal and interest payments on the Chula Vista Public Financing Authority debt. Total fund balance as of June 30, 2017 was $6.2 million, composed entirely of committed fund balance. The fund balance decreased by $2.7 million in fiscal year 2016-17 due to a bond refinancing, and debt service payments. Municipal Financing Authority Fund – This fund was established to account for the principal and interest payments on the Chula Vista Municipal Financing Authority debt. Total fund balance as of June 30, 2017 was $25,000, composed entirely of restricted fund balance. The fund balance increased by $25,000 in fiscal year 2016-17 due to a bond refinancing, and debt service payments. 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 $37.4 million. In addition, non-operating revenues totaling $0.4 million were realized (interest income and gain on capital asset). Operating expenses totaled $32.1 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 $23.5 million. After accounting for all revenues and expenses, both operating and non-operating, net position of the fund increased by $2.6 million for the year, totaling $242.4 million as of June 30, 2017. Of total net position, $133.5 million is designated 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 total $102.7 million, comprised of cash and investments ($98.3 million) and accounts receivable ($4.4 million). Fund liabilities at the end of the fiscal year totaled $15.3 million, of which $1.2 million were considered current liabilities. The fund has no outstanding bonded debt. Sewer Development Impact Fee Fund – This fund was established as a depository for sewer 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 sewer facilities as a result of City growth. Operating revenues totaled $0.1 million. In addition, non-operating revenues totaling $9,000 were realized (interest income and gain on capital asset). Operating expenses totaled $8,000 for the year, comprised of administration and depreciation. Nonoperating expenses were comprised of transfers to other funds for repayment of an interfund loan. 2018-01-09 Agenda Packet Page66 Net position of the fund was negative $16.5 million primarily due to the aforementioned interfund loan, and was comprised of $2.9 million in assets and $19.4 million in liabilities. There are no deferred outflows or inflows. Development Services Fund – This fund accounts for revenues and expenditures related to the processing of development plans and permits. The fund is comprised of three divisions, Planning, Building, and Engineering, which provide direct services to property owners, developers, and the City as required for the entitlement and/or improvement of property. The services provided encompass most development activities, including land use entitlements; public infrastructure, open space, and landscape planning; public infrastructure construction, grading and building permits. Operating revenues totaled $7.3 million and were primarily comprised of permits and fees. Operating expenses totaled $6.7million for the year, mostly comprised of personnel service costs. Nonoperating revenues and expenses were comprised of transfers to and from other funds for subsidies and overhead expenses, respectively. Net position of the fund was negative $16.5 million primarily due to long-term pension liabilities. Assets (both current and noncurrent) totaled $0.7 million. Current liabilities were $1.4 million and were largely attributed to obligations to other funds ($0.9 million) and compensated absences accrual ($0.2 million). Noncurrent liabilities totaled $18.6 million and were mainly due to pension liabilities. Likewise, the deferred outflows and inflows, $$3.1 million and $0.5 million, respectively were pension related. Chula Vista Elite Athlete Training Center (CVEATC) Fund – This fund was established to account for the CVEATC’s activities in partnership with Elite Athlete Services, the CVEATC operator. There were no operating revenues in fiscal year 2016-17, as the City had only acquired the facility in January 2017. Operating expenses of $0.4 million were comprised of startup supplies and administration, as well as depreciation. The primary recordation in this fund was the recognition of the Contribution of land and facilities in the amount of $197.7 million within non- operating revenues. Net position of the fund was $197.4 million primarily due to the facility contribution from the US Olympic Committee, and was comprised of $0.1 million in assets and $0.2 million in liabilities. There are no deferred outflows or inflows. 2018-01-09 Agenda Packet Page67 GENERAL FUND BUDGETARY HIGHLIGHTS The final amended general fund budget totaled $162,242,718 including $10,019,642 in budget amendments to the originally adopted budget and encumbrances of $4,506,815 which will fund contractual obligations and outstanding purchase orders. The General Funds’ budget amendments of $10,019,642 are summarized as follows: 2018-01-09 Agenda Packet Page68 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, 2017, amounts to $1,487.3 million, net of accumulated depreciation of $572.1 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 positive of $546.5 million, net of accumulated depreciation. This increase in capital assets is much larger than normal for two reasons. First, staff determined that many land and building assets had not been recorded into the City’s financial system dating back multiple years. Given this omission, staff conducted an analysis of the San Diego County secured property tax roll, discovered dozens of parcels, which included a potential university site and many open space parcels, and a few buildings owned by the City, and promptly recorded them. These additions totaled $359.9 million. The second large addition was the City’s acquisition of the Chula Vista Elite Athlete Training Center (the CVEATC) (formerly the US Olympic Training Center). The CVEATC acquisition, added $180.7 million in land, buildings, and other capital facilities to the City’s book of capital assets. 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, 2017, the City had $127.5 million in debt outstanding compared to $129.9 million last year, a net decrease of 1.8%. The majority of this debt is in the form of Certificates of Participation ($106.0 million) and a CDBG Section 108 Loan ($6.8 million). The remainder of the outstanding long-term debt is in the form of notes payable and capital lease obligations. The City has no outstanding general obligation debt. The City made principal payments of $4.7 million during the fiscal year. In July 2016, the Chula Vista Public Financing Authority issued $8,600,000 in 2016 Certificates of Participation to refinance the City’s outstanding 2006 Certificates of Participation (Civic Center Project Phase II). In July 2016, the Chula Vista Municipal Financing Authority issued $25,885,000 in 2016 Lease Revenue Refunding Bonds to refinance the City’s outstanding 2010 Certificates of Participation (Capital Facilities Refunding Projects). As of June 30, 2017, the City has maintained its “AA-” rating by Standard & Poor’s 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. 2018-01-09 Agenda Packet Page69 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 2016-17 fiscal year was $26,753,998,423. This is an increase of $1,451,113,810 or 5.73% over the 2015-16 assessed valuation. It should be noted that assessed value was set as of January 1, 2016. Actual current secured property tax revenues for the 2015-16 fiscal year totaled $29.7 million, which is $1.2 million more than collected in the prior year. Building Activity The valuation of all building and related permits totaled $292.3 million for the 2016-17 fiscal year. This is approximately 15.5% more than the valuation of $253.0 million for these permit categories in the prior fiscal year. The year over year increase in building permits activity reflects a significant increase over the prior year in the new construction market, although current activity is still well below the peak activity during the housing boom of the mid-2000s. 2018-01-09 Agenda Packet Page70 Local Economy The USD Burnham-Moores Center for Real Estate’s Index of Leading Economic Indicators for San Diego County was flat for the first four months of Fiscal Year 2016-17, after which it has risen significantly, as illustrated in the chart below. With the increases in September and October 2017, the index has been increasing for the last 12-month period, and is at its highest mark since the commencement of economic recovery after the 2007-2009 severe recession. Positive but slower growth is expected for the rest of the year and through 2018. Consumer confidence has continued to trend upward, as the outlook for the national economy appears solid with 14 consecutive monthly increases in the National Index of Leading Economic Indicators. The second estimate of third quarter GDP growth was 3.3 percent, which is up from the 3.1 percent final GDP figure for the second quarter of 2017. The national labor market has continued to strengthen as well, with the unemployment rate falling to 4.1 percent and wage and job growth posting a solid 261,000 additions in October 2017. June 2017 home prices in San Diego County were up 7.9% from a year ago according to Zillow Inc., a company that tracks and analyzes real estate markets. The reported median price for all San Diego County home sales was $624,888. All of Chula Vista’s five zip codes saw increases in the median price of single-family residences according to the report. Consistent with most cities and counties across the nation, Chula Vista continues to move forward in its economic recovery. 2018-01-09 Agenda Packet Page71 Data for June 2017 Compared to July 2016 Zip Code Locale Median Sold Price Percent Change 2017 2016 91910 North $490,000 $454,600 7.8% 91911 South $449,000 $414,225 8.4% 91913 Eastlake $509,000 $467,900 8.8% 91914 NE $752,450 $668,824 12.5% 91915 SE $495,000 $472,625 4.7% Fiscal Year 2016-17 Budget The City ended the 2016-17 fiscal year with an unassigned fund balance of $20.0 million and a committed fund balance of $5.9 million, including the $3.6 million Economic Contingency Reserve within the General Fund. In June 2017, the Chula Vista City Council adopted the fiscal year 2017-18 budget which provides $373.0 million in appropriations to fund all City activities. The General Fund budget total $166.6 million, which includes $0.1 million for capital. The City continues to adopt a one- year budget. The City’s property tax values are recovering in the aftermath of the national mortgage crisis from 2008-2012. Based on information received from the San Diego County Assessor, Chula Vista’s projected change in total assessed value for fiscal year 2017-18 is positive at 7.8% when compared to 2016-17 total assessed values. Management conservatively budgeted anticipated property tax revenue growth in 2017-18 at 4.5% greater than projected 2016-17 actual revenue. REQUESTS FOR INFORMATION This financial report is designed to provide a general overview of the City’s finances for all of its citizens, taxpayers, customers, investors and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Chula Vista, Finance Department, 276 Fourth Avenue, Chula Vista, CA 91910. 2018-01-09 Agenda Packet Page72        2018-01-09 Agenda Packet Page73 BASIC FINANCIAL STATEMENTS 2018-01-09 Agenda Packet Page74        2018-01-09 Agenda Packet Page75 GOVERNMENT-WIDE FINANCIAL STATEMENTS 2018-01-09 Agenda Packet Page76        2018-01-09 Agenda Packet Page77 CITY OF CHULA VISTA STATEMENT OF NET POSITION JUNE 30, 2017 Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and investments 127,847,136$ 101,454,785$ 229,301,921$ Receivables: Accounts 7,227,711 5,257,545 12,485,256 Taxes 14,046,975 - 14,046,975 Accrued interest 11,803 - 11,803 Deferred loans 52,044,027 - 52,044,027 Allowance for uncollectible loans (50,030,085) - (50,030,085) Due from Successor Agency of Chula Vista RDA 10,109,831 - 10,109,831 Prepaid costs 50,635 36,276 86,911 Due from other governments 7,369,956 - 7,369,956 Total Current Assets 168,677,989 106,748,606 275,426,595 Non-current assets: Restricted assets: Cash and investments 791,245 - 791,245 Cash with fiscal agent 5,707,801 - 5,707,801 Internal balances 1,054,835 (1,054,835) - Capital assets not being depreciated 481,540,463 182,789,473 664,329,936 Capital assets, net of depreciation 665,854,630 148,410,040 814,264,670 Total non-current assets 1,154,948,974 330,144,678 1,485,093,652 Total Assets 1,323,626,963 436,893,284 1,760,520,247 Deferred Outflows of Resources: Deferred charge on refunding 5,221,466 - 5,221,466 Deferred items related to pensions 56,690,919 5,432,012 62,122,931 Total Deferred Outflows of Resources 61,912,385 5,432,012 67,344,397 LIABILITIES Current liabilities: Accounts payable 5,891,850 941,254 6,833,104 Accrued liabilities 2,598,702 337,659 2,936,361 Accrued interest 1,334,110 - 1,334,110 Retention payable 124,294 17,413 141,707 Unearned revenue 694,608 392,662 1,087,270 Compensated absences due within one year 5,104,918 454,096 5,559,014 Claims payable - due within one year 4,000,000 - 4,000,000 Short-term portion of bonds, leases, and notes payable 6,068,351 - 6,068,351 Total current liabilities 25,816,833 2,143,084 27,959,917 Non-current liabilities: Compensated absences - due in more than one year 2,239,880 154,800 2,394,680 Claims payable - due in more than one year 18,305,729 - 18,305,729 Net OPEB liability 10,561,591 - 10,561,591 Net pension liability 262,386,162 32,980,068 295,366,230 Long-term portion of bonds, leases, and notes payable 121,402,426 - 121,402,426 Total non-current liabilities 414,895,788 33,134,868 448,030,656 Total Liabilities 440,712,621 35,277,952 475,990,573 Deferred Inflows of Resources: Deferred items related to pensions 7,653,312 887,450 8,540,762 Total Deferred Inflows of Resources 7,653,312 887,450 8,540,762 Net Position: Net investment in capital assets 1,031,902,782 331,199,513 1,363,102,295 Restricted for: Community development projects 18,657,537 - 18,657,537 Public safety 3,951,945 - 3,951,945 Parks and recreation 260,458 - 260,458 Capital projects 105,219,537 2,593,403 107,812,940 Debt service 24,893 - 24,893 Unrestricted (222,843,737) 72,366,978 (150,476,759) Total Net Position 937,173,415$ 406,159,894$ 1,343,333,309$ Primary Government See Notes to Financial Statements2018-01-09 Agenda Packet Page78 CITY OF CHULA VISTA STATEMENT OF ACTIVITIES JUNE 30, 2017 Operating Capital Total Charges for Contributions Contributions Program Expenses Services and Grants and Grants Revenues Functions/Programs Primary Government: Governmental Activities: General government 35,375,230$ 12,317,921$ 4,799,275$ 400,952$ 17,518,148$ Public safety 94,716,683 11,997,221 8,473,534 526,474 20,997,229 Community development 1,552,750 771,603 - -771,603 Community services 14,990 - - 75,000 75,000 Public works 68,885,918 32,598,199 9,478,747 4,617,305 46,694,251 Parks and recreation 6,875,635 8,221,019 - -8,221,019 Library 5,018,878 1,575,837 - -1,575,837 Interest on long-term debt 4,673,047 - - -- Total Governmental Activities 217,113,131 67,481,800 22,751,556 5,619,731 95,853,087 Business-Type Activities: Sewer Fund 32,179,875 36,289,930 - -36,289,930 Transit Fund 39,594 - - -- Sewer Development Impact Fees 8,305 111,907 - -111,907 Development Services Fund 6,655,654 7,291,037 - -7,291,037 Chula Vista Mini Golf Course 27,092 - - -- CV Elite Athlete Training Ctr 449,028 - - -- Total Business-Type Activities 39,359,548 43,692,874 - -43,692,874 Total Primary Government 256,472,679$ 111,174,674$ 22,751,556$ 5,619,731$ 139,545,961$ General Revenues: Taxes: Property taxes, levied for general purpose Transient occupancy taxes Sales taxes Franchise taxes Business licenses taxes Utility users tax Residential Construction tax Property transfer tax Investment earnings Miscellaneous Gain on sale of capital asset Transfers Total General Revenues and Transfers Change in Net Position Net Position at Beginning of Year Restatement of Net Position Net Position at Beginning of Year, as restated Net Position at End of Year Program Revenues See Notes to Financial Statements2018-01-09 Agenda Packet Page79 Primary Government Governmental Business-Type Activities Activities Total (17,857,082)$ -$ (17,857,082)$ (73,719,454) - (73,719,454) (781,147) - (781,147) 60,010 - 60,010 (22,191,667) - (22,191,667) 1,345,384 - 1,345,384 (3,443,041) - (3,443,041) (4,673,047) - (4,673,047) (121,260,044) - (121,260,044) - 4,110,055 4,110,055 - (39,594) (39,594) - 103,602 103,602 - 635,383 635,383 - (27,092) (27,092) - (449,028) (449,028) - 4,333,326 4,333,326 (121,260,044) 4,333,326 (116,926,718) 53,248,196 - 53,248,196 3,650,442 - 3,650,442 36,469,033 - 36,469,033 11,515,850 - 11,515,850 1,558,887 - 1,558,887 5,786,326 - 5,786,326 413,914 - 413,914 1,176,358 - 1,176,358 2,954,403 322,527 3,276,930 1,677,271 198,847,750 200,525,021 8,970 115,703 124,673 4,180,778 (4,180,778) - 122,640,428 195,105,202 317,745,630 1,380,384 199,438,528 200,818,912 575,808,876 206,763,778 782,572,654 359,984,155 (42,412) 359,941,743 935,793,031 206,721,366 1,142,514,397 937,173,415$ 406,159,894$ 1,343,333,309$ Net (Expenses) Revenues and Changes in Net Position See Notes to Financial Statements2018-01-09 Agenda Packet Page80        2018-01-09 Agenda Packet Page81 FUND FINANCIAL STATEMENTS 2018-01-09 Agenda Packet Page82        2018-01-09 Agenda Packet Page83 GOVERNMENTAL FUND FINANCIAL STATEMENTS 2018-01-09 Agenda Packet Page84 CITY OF CHULA VISTA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2017 General Assets: Pooled cash and investments 11,628,059$ 4,344,466$ 7,617,904$ 34,070,372$ 33,938,964$ Receivables: Accounts 6,622,844 282,658 - - - Taxes 13,761,094 117,403 - - - Accrued interest - - - - - Deferred loans 61,564 22,010,486 26,608,411 - - Allowance for uncollectible loans (61,564) (21,753,721) (25,351,181) - - Prepaid costs 44,248 4,366 - - - Due from other governments 547,086 3,886,307 - - - Due from other funds 8,229,776 - - - - Advances to other funds 1,489,995 - - 9,219,238 8,160,323 Restricted assets: Cash and investments - 25,975 765,270 - - Cash and investments with fiscal agents - - - - - Due from Successor Agency of Chula Vista RDA 9,885,147 - 224,684 - - Total Assets 52,208,249$ 8,917,940$ 9,865,088$ 43,289,610$ 42,099,287$ Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable 3,056,156$ 997,467$ 359$ 272,689$ 60,557$ Accrued liabilities 2,310,625 265,710 - - - Unearned revenues 147,891 421,421 - - - Retentions payable 1,089 - - - 5,480 Due to other funds - 4,187,570 - - - Advances from other funds - - - - - Total Liabilities 5,515,761 5,872,168 359 272,689 66,037 Deferred Inflows of Resources: Unavailable revenues 4,843,523 52,899 - - 1,203,496 Total Deferred Inflows of Resources 4,843,523 52,899 - - 1,203,496 Fund Balances: Nonspendable: Prepaid costs 44,248 - - - - Due from Sucessor Agency of Chula Vista RDA 5,834,630 - - - - Advances to other funds 1,489,995 - - - - Restricted for: Community development projects - 2,546,484 9,864,729 - - Public safety - 256,057 - - - Parks and recreation - 73,240 - - - Capital Projects - 117,092 - 43,016,921 40,829,754 Debt service - - - - - Committed to: Capital Projects 1,775,607 - - - - Debt service - - - - - Economic contingency 3,600,000 - - - - San Diego Authority for Freeway Emergency 557,993 - - - - Legal counsel 5,000 - - - - Assigned to: General government 4,927,704 - - - - Public safety 1,034,275 - - - - Parks and recreation 73,895 - - - - Public works 237,560 - - - - Library 8,000 - - - - Public liability 996,606 - - - - Measure P Sales Tax 1,248,299 - - - - Unassigned 20,015,153 - - - - Total Fund Balances 41,848,965 2,992,873 9,864,729 43,016,921 40,829,754 Total Liabilities, Deferred Inflows of Resources, and Fund Balances 52,208,249$ 8,917,940$ 9,865,088$ 43,289,610$ 42,099,287$ Special Revenue Funds Capital Projects Funds Sundry Grants Housing Successor Agency Park Acquisition Development Development Impact Funds See Notes to Financial Statements2018-01-09 Agenda Packet Page85 CITY OF CHULA VISTA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Deferred loans Allowance for uncollectible loans Prepaid costs Due from other governments Due from other funds Advances to other funds Restricted assets: Cash and investments Cash and investments with fiscal agents Due from Successor Agency of Chula Vista RDA Total Assets Liabilities, Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Retentions payable Due to other funds Advances from other funds Total Liabilities Deferred Inflows of Resources: Unavailable revenues Total Deferred Inflows of Resources Fund Balances: Nonspendable: Prepaid costs Due from Sucessor Agency of Chula Vista RDA Advances to other funds Restricted for: Community development projects Public safety Parks and recreation Capital Projects Debt service Committed to: Capital Projects Debt service Economic contingency San Diego Authority for Freeway Emergency Legal counsel Assigned to: General government Public safety Parks and recreation Public works Library Public liability Measure P Sales Tax Unassigned Total Fund Balances Total Liabilities, Deferred Inflows of Resources, and Fund Balances Other Total Governmental Governmental Funds Funds -$ 1,154,687$ 24,788$ 31,936,310$ 124,715,550$ - - - 249,199 7,154,701 - - - 168,478 14,046,975 - - - 11,803 11,803 - - - 3,363,566 52,044,027 - - - (2,863,619) (50,030,085) - 1,125 - - 49,739 - - - 2,936,563 7,369,956 - - - - 8,229,776 - - - - 18,869,556 - - - - 791,245 - 5,082,696 105 - 5,082,801 - - - - 10,109,831 -$ 6,238,508$ 24,893$ 35,802,300$ 198,445,875$ -$ -$ -$ 1,187,666$ 5,574,894$ - - - 11 2,576,346 - - - 125,296 694,608 - - - 117,725 124,294 5,767 - - 3,063,456 7,256,793 18,960,645 - - - 18,960,645 18,966,412 - - 4,494,154 35,187,580 - - - - 6,099,918 - - - - 6,099,918 - - - - 44,248 - - - - 5,834,630 - - - - 1,489,995 - - - 6,246,324 18,657,537 - - - 3,695,888 3,951,945 - - - 187,218 260,458 - - - 21,255,770 105,219,537 - - 24,893 - 24,893 - - - - 1,775,607 - 6,238,508 - 345,095 6,583,603 - - - - 3,600,000 - - - - 557,993 - - - - 5,000 - - - - 4,927,704 - - - - 1,034,275 - - - - 73,895 - - - - 237,560 - - - - 8,000 - - - - 996,606 - - - - 1,248,299 (18,966,412) - - (422,149) 626,592 (18,966,412) 6,238,508 24,893 31,308,146 157,158,377 -$ 6,238,508$ 24,893$ 35,802,300$ 198,445,875$ Debt Service Funds City Debt Service Public Financing Authority Municipal Financing Authority See Notes to Financial Statements2018-01-09 Agenda Packet Page86        2018-01-09 Agenda Packet Page87 CITY OF CHULA VISTA STATEMENT OF ACTIVITIES RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUINDS TO THE STATEMENT OF NET POSITION JUNE 30, 2017 Fund balances of governmental funds 157,158,377$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity.1,146,426,990 Deferred outflows related to contributions made after the actuarial measurement date for the net pension liability.23,570,360 Deferred outflows related to difference between expected and actual experience.1,088,891 Deferred outflows related to difference between projected and actual earnings.31,490,723 Long-term debt and compensated absences that have not been included in the governmental fund activity: Bonds payable (106,025,000)$ Section 108 Loan (6,757,000) Unamortized bond premiums/discounts (7,603,488) Capital leases (3,279,703) Claims liability (22,305,729) Notes payable (3,805,586) Net pension liability (259,439,121) Compensated absences (7,296,091) (416,511,718) Deferred outflows related to the refunding of long-term debt.5,221,466 Governmental funds report all OPEB contributions as expenditures, however in the statement of net position any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC) are recorded as an asset or liability.(10,561,591) Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds.(1,334,110) Revenues reported as unavailable revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity.6,099,918 Deferred inflows related to changes in actuarial assumptions.(6,475,319) Deferred inflows related to difference between expected and actual experience.(1,156,926) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net position.2,156,354 Net Position of governmental activities 937,173,415$ See Notes to Financial Statements2018-01-09 Agenda Packet Page88 CITY OF CHULA VISTA STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 General Revenues: Taxes 113,405,092$ -$ -$ -$ -$ Licenses and permits 1,266,885 - - - - Intergovernmental 1,936,757 12,683,120 - - - Charges for services 10,317,929 1,191,788 - - - Use of money and property 2,607,245 103,625 480,399 111,961 1 Fines and forfeitures 1,123,010 - - - - Developer participation - - - 470,567 8,339,611 Miscellaneous 19,616,239 676,290 700,573 - - Total Revenues 150,273,157 14,654,823 1,180,972 582,528 8,339,612 Expenditures: Current: General government 28,166,394 1,653,376 - 885,959 - Public safety 78,927,809 8,330,598 - - - Community development 1,904,761 - 125,893 - - Parks and recreation 4,243,609 1,500 - - - Public works 30,693,625 2,665,151 - - 361,973 Library 3,868,100 853,020 - - - Capital outlay 2,438,848 1,791,255 - 31,714 3,007,658 Debt service: Principal retirement - - - - - Interest and fiscal charges - - - - - Payment to refunded bond escrow agent - - - - - Total Expenditures 150,243,146 15,294,900 125,893 917,673 3,369,631 Excess (Deficiency) of Revenues Over (Under) Expenditures 30,011 (640,077) 1,055,079 (335,145) 4,969,981 Other Financing Sources (Uses): Transfers in 10,166,928 213,356 - 10,782 9,461 Transfers out (7,025,684) (889,324) - (80,000) (5,078,179) Capital leases 1,285,053 - - - - Proceeds from issuance of bonds - - - - - Bond premium - - - - - Payment to refunded bond escrow agent - - - - - Total Other Financing Sources (Uses)4,426,297 (675,968) - (69,218) (5,068,718) Net Change in Fund Balances 4,456,308 (1,316,045) 1,055,079 (404,363) (98,737) Fund Balances, Beginning of Year 37,392,657 4,308,918 8,809,650 43,421,284 40,928,491 Fund Balances, End of Year 41,848,965$ 2,992,873$ 9,864,729$ 43,016,921$ 40,829,754$ Development Impact Funds Park Acquisition Development Housing Successor Agency Sundry Grants Capital Projects FundsSpecial Revenue Funds See Notes to Financial Statements2018-01-09 Agenda Packet Page89 CITY OF CHULA VISTA STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Developer participation Miscellaneous Total Revenues Expenditures: Current: General government Public safety Community development Parks and recreation Public works Library Capital outlay Debt service: Principal retirement Interest and fiscal charges Payment to refunded bond escrow agent Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Capital leases Proceeds from issuance of bonds Bond premium Payment to refunded bond escrow agent Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Other Total Governmental Governmental Funds Funds -$ -$ -$ 8,057,512$ 121,462,604$ - - - 24,083 1,290,968 - - - 8,807,583 23,427,460 - - - 15,152,377 26,662,094 - 33,835 111 429,280 3,766,457 - - - 682,498 1,805,508 - - - - 8,810,178 - 830 - 2,535,425 23,529,357 - 34,665 111 35,688,758 210,754,626 - 8,600 1,700 2,501,974 33,218,003 - - - 472,729 87,731,136 - - - - 2,030,654 - - - 1,496 4,246,605 - - - 11,414,841 45,135,590 - - - - 4,721,120 - - - 11,903,191 19,172,666 - 3,230,000 1,470,000 1,410,055 6,110,055 - 3,599,105 985,578 609,581 5,194,264 - 2,673,892 - - 2,673,892 - 9,511,597 2,457,278 28,313,867 210,233,985 - (9,476,932) (2,457,167) 7,374,891 520,641 290,000 34,753,461 2,171,441 2,243,335 49,858,764 (22,320) (51,382) (28,091,002) (5,940,095) (47,177,986) - - - - 1,285,053 - 8,600,000 25,885,000 - 34,485,000 - 319,652 2,516,621 - 2,836,273 - (36,860,637) - - (36,860,637) 267,680 6,761,094 2,482,060 (3,696,760) 4,426,467 267,680 (2,715,838) 24,893 3,678,131 4,947,108 (19,234,092) 8,954,346 - 27,630,015 152,211,269 (18,966,412)$ 6,238,508$ 24,893$ 31,308,146$ 157,158,377$ City Debt Service Public Financing Authority Municipal Financing Authority Debt Service Funds See Notes to Financial Statements2018-01-09 Agenda Packet Page90 CITY OF CHULA VISTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2017 Net change in fund balances - total governmental funds 4,947,108$ Amounts reported for governmental activities in the statement of activities are 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, including donated assets of $3,466,657. 21,023,633 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 (27,894,215) in the amount of $393,291. 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 (34,485,000) Premium from issuance of long-term debt (2,836,273) Principal payment of long-term debt 6,110,055 Payments to refunded bond escrow agent 39,534,529 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 479,604 Deferred charge on refunding (324,009) 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 (131,855) Changes in claims payable 163,210 Capital leases entered into (1,285,053) Changes in net OPEB liabilities (1,103,591) Change in pollution remediation obligatoin 150,000 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.365,622 Unavailable revenue related to long-term receivables previously recognized as revenue in the Government-Wide Statement of Activities was reclassified as an allowance for uncollectible loans in the Governmental Funds. 78,590 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. 1,014,746 Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (4,426,717) Change in net position of governmental activities 1,380,384$ See Notes to Financial Statements 2018-01-09 Agenda Packet Page91 PROPRIETARY FUND FINANCIAL STATEMENTS 2018-01-09 Agenda Packet Page92 CITY OF CHULA VISTA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30, 2017 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Assets: Current: Cash and investments 98,259,390$ 2,819,425 $ - $ - $ 375,970 $ 101,454,785$ 3,131,586 $ Receivables: Accounts 4,363,161 -740,001 124,383 30,000 5,257,545 73,010 Prepaid costs 36,276 -- -- 36,276 896 Cash with fiscal agent - -- -- - 625,000 Total Current Assets 102,658,827 2,819,425 740,001 124,383 405,970 106,748,606 3,830,492 Noncurrent: Advances to other funds 19,507,072 -- -- 19,507,072 - Capital assets - net of accumulated depreciation 133,548,373 116,684 - 197,534,456 - 331,199,513 968,103 Total Noncurrent Assets 153,055,445 116,684 - 197,534,456 - 350,706,585 968,103 Total Assets 255,714,272 2,936,109 740,001 197,658,839 405,970 457,455,191 4,798,595 Deferred Outflows of Resources: Deferred pension contributions 2,284,810 -3,145,146 -2,056 5,432,012 540,945 Total Deferred Outflows of Resources 2,284,810 -3,145,146 -2,056 5,432,012 540,945 Liabilities: Current: Accounts payable 743,778 -69,019 119,457 9,000 941,254 316,956 Accrued liabilities 211,568 -126,091 -- 337,659 22,356 Retention payable 17,413 -- -- 17,413 - Unearned revenues - -- 124,383 268,279 392,662 - Due to other funds - -940,966 4,925 27,092 972,983 - Accrued compensated absences 230,402 -223,694 -- 454,096 16,706 Total Current Liabilities 1,203,161 -1,359,770 248,765 304,371 3,116,067 356,018 Noncurrent: Advances from other funds - 19,415,983 - -- 19,415,983 - Accrued compensated absences 17,978 -136,822 -- 154,800 32,001 Net pension liability 14,036,115 -18,440,498 -503,455 32,980,068 2,947,041 Total Noncurrent Liabilities 14,054,093 19,415,983 18,577,320 -503,455 52,550,851 2,979,042 Total Liabilities 15,257,254 19,415,983 19,937,090 248,765 807,826 55,666,918 3,335,060 Deferred Inflows of Resources: Deferred items related to pensions 363,205 -496,789 -27,456 887,450 21,067 Total Deferred Inflows of Resources 363,205 -496,789 -27,456 887,450 21,067 Net Position: Investment in capital assets 133,548,373 116,684 - 197,534,456 - 331,199,513 968,103 Restricted for capital projects - 2,593,403 - -- 2,593,403 - Unrestricted 108,830,250 (19,189,961) (16,548,732) (124,382) (427,256) 72,539,919 1,015,310 Total Net Position 242,378,623$ (16,479,874)$ (16,548,732)$ 197,410,074$ (427,256)$ 406,332,835$ 1,983,413$ Reconciliation of Net Position to the Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds 406,332,835$ Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (138,587) Current years' adjustments to reflect the consolidation of internal service activities related to enterprise funds (34,354) Net Position per Statement of Net Position 406,159,894$ CV Elite Athlete Training Ctr Business-Type Activities - Enterprise Funds Sewer Fund Sewer Development Impact Fees Development Services Fund See Notes to Financial Statements2018-01-09 Agenda Packet Page93 CITY OF CHULA VISTA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Operating Revenues: Sales and service charges 36,289,930$ 111,907$ 7,291,037$ -$ -$ 43,692,874$ -$ Interdepartmental charges - - - - - - 6,802,090 Other 1,111,140 - 1,621 - 30,257 1,143,018 43,437 Total Operating Revenues 37,401,070 111,907 7,292,658 - 30,257 44,835,892 6,845,527 Operating Expenses: Administration and general 23,546,839 5,270 6,655,654 147,812 66,686 30,422,261 6,984,708 Source of supply 2,326,812 - - 93,960 - 2,420,772 - Cost of sales and services - - - 36,980 - 36,980 - Depreciation expense 6,271,870 3,035 - 170,276 - 6,445,181 393,291 Total Operating Expenses 32,145,521 8,305 6,655,654 449,028 66,686 39,325,194 7,377,999 Operating Income (Loss)5,255,549 103,602 637,004 (449,028) (36,429) 5,510,698 (532,472) Nonoperating Revenues (Expenses): Intergovernmental - - - - - - - Interest revenue 312,919 9,337 - - 271 322,527 3,894 Contributions - - - 197,704,732 - 197,704,732 - Gain (loss) on disposal of capital assets 115,703 - - - - 115,703 8,970 Total Nonoperating Revenues (Expenses)428,622 9,337 - 197,704,732 271 198,142,962 12,864 5,684,171 112,939 637,004 197,255,704 (36,158) 203,653,660 (519,608) Transfers in 22,976 - 841,759 154,370 - 1,019,105 1,500,000 Transfers out (3,380,608) (22,627) (1,796,648) - - (5,199,883) - Changes in Net Position 2,326,539 90,312 (317,885) 197,410,074 (36,158) 199,472,882 980,392 Net Position: Beginning of Year, as previously reported 240,052,084 (16,570,186) (16,230,847) - (348,686) 206,902,365 912,538 Restatements - - - - (42,412) (42,412) 90,483 Beginning of Fiscal Year, as restated 240,052,084 (16,570,186) (16,230,847) - (391,098) 206,859,953 1,003,021 End of Fiscal Year 242,378,623$ (16,479,874)$ (16,548,732)$ 197,410,074$ (427,256)$ 406,332,835$ 1,983,413$ Reconciliation of Changes in Net Position to the Statement of Activities: Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds 199,472,882$ Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (34,354) Changes in Net Position of Business-Type Activities per Statement of Activities 199,438,528$ CV Elite Athlete Training Ctr Income (Loss) Before Transfers Business-Type Activities - Enterprise Funds Sewer Fund Sewer Development Impact Fees Development Services Fund See Notes to Financial Statements2018-01-09 Agenda Packet Page94 CITY OF CHULA VISTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Governmental Other Activities- Enterprise Internal Funds Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users 38,216,549$ 111,907$ 7,042,176$ -$ 42,669$ 45,413,301$ -$ Cash received from/(paid to) interfund service provided --- -27,092 27,092 6,772,851 Cash received from/(paid to) suppliers for goods and services (1,767,675) (32,657) 35,153 (11,483) -(1,776,662) 135,658 Cash paid to employees for services (23,363,724) (5,270) (6,720,896) (147,812) (57,686) (30,295,388) (6,981,265) Net Cash Provided (Used) by Operating Activities 13,085,150 73,980 356,433 (159,295) 12,075 13,368,343 (72,756) Cash Flows from Non-Capital Financing Activities: Cash transfers out (3,380,608) (22,627) (1,796,648) --(5,199,883) - Cash transfers in 22,976 -841,759 154,370 -1,019,105 1,500,000 Repayment received from other funds 287,023 -598,456 4,925 -890,404 90,483 Repayment made to other funds -(77,373) - -(42,412) (119,785) - Advance to other funds --- ---- Net Cash Provided (Used) by Non-Capital Financing Activities (3,070,609) (100,000) (356,433) 159,295 (42,412) (3,410,159) 1,590,483 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (3,950,111) -- --(3,950,111) (194,245) Advance from other funds --- ---- Proceeds from sales of capital assets 115,703 -- --115,703 20,008 Net Cash Provided (Used) by Capital and Related Financing Activities (3,834,408) -- --(3,834,408) (174,237) Cash Flows from Investing Activities: Interest received 312,919 9,337 - -271 322,527 3,894 Net Cash Provided (Used) by Investing Activities 312,919 9,337 - -271 322,527 3,894 Net Increase (Decrease) in Cash and Cash Equivalents 6,493,052 (16,683) - -(30,066) 6,446,303 1,347,384 Cash and Cash Equivalents at Beginning of Year 91,766,338 2,836,108 - -406,036 95,008,482 2,409,202 Cash and Cash Equivalents at End of Year 98,259,390$ 2,819,425$ -$ -$ 375,970$ 101,454,785$ 3,756,586$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)5,255,549$ 103,602$ 637,004$ (449,028)$ (36,429)$ 5,510,698$ (532,472)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 6,271,870 3,035 - 170,276 -6,445,181 393,291 (Increase) decrease in accounts receivable 815,479 -(250,482) (124,383) 12,412 453,026 (72,676) (Increase) decrease in taxes receivable --- ---- (Increase) decrease in due from other governments --- ---- (Increase) decrease in prepaid costs (3,610) -- --(3,610) (896) (Increase) decrease in deferred outflows from pensions (1,399,268) -(2,000,102) 9,000 (3,390,370) (332,113) Increase (decrease) in accounts payable 563,317 (32,657) 35,153 119,457 -685,270 136,554 Increase (decrease) in due to other funds --- -27,092 27,092 - Increase (decrease) in retentions payable (570) -- --(570)- Increase (decrease) in accrued liabilities (25,443) -(44,920) --(70,363) (5,879) Increase (decrease) in unearned revenue - - - 124,383 -124,383 - Increase (decrease) in claims and judgments --- ---- Increase (decrease) in compensated absences 15,038 -(78,275) --(63,237) (33,675) Increase (decrease) in net pension liability 1,933,155 -2,497,846 -4,431,001 455,287 Increase (decrease) in deferred inflows from pensions (340,367) -(439,791) -(780,158) (80,177) Total Adjustments 7,829,601 (29,622) (280,571) 289,733 48,504 7,857,645 459,716 Net Cash Provided (Used) by Operating Activities 13,085,150$ 73,980$ 356,433$ (159,295)$ 12,075$ 13,368,343$ (72,756)$ Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets -$ -$ -$ -$ -$ -$ 8,970$ Donated capital assets - - - 197,704,732 - 197,704,732 - Business-Type Activities - Enterprise Funds Sewer Fund Sewer Development Impact Fees Development Services Fund CV Elite Athlete Training Ctr See Notes to Financial Statements2018-01-09 Agenda Packet Page95 CITY OF CHULA VISTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30, 2017 Agency Funds Assets: Pooled cash and investments 9,025,348$ 3,435,578$ Receivables: Accounts - 45,904 Notes and loans - 128,544 Allowance for uncollectible loans - (128,544) Accrued interest 1,431 - Restricted assets: Cash and investments 15,048,347 - Cash and investments with fiscal agents 30,815,087 77 Capital assets: Capital assets, not being depreciated - 7,676,605 Capital assets, net of accumulated depreciation - 1,036,754 Total Assets 54,890,213$ 12,194,918$ Deferred Outflows of Resources: Deferred charge on refunding 1,586,194 Total Deferred Outflows of Resources 1,586,194$ Liabilities and Net Position: Liabilities: Accounts payable 679,662$ 183$ Accrued liabilities - 1,345 Accrued interest - 291,541 Unearned revenues 15,593 - Deposits payable 14,379,302 - Due to other governments - 55,141 Due to the City of Chula Vista - 10,109,832 Due to external parties/other agencies 39,815,656 - Long-term liabilities: Due in one year - 1,385,000 Due in more than one year - 32,383,409 Total Liabilities 54,890,213$ 44,226,451 Net Position: Held in trust for other purposes (30,445,339) Total Net Position (30,445,339)$ Private-Purpose Trust Fund Successor Agency of the Former Chula Vista RDA See Notes to Financial Statements2018-01-09 Agenda Packet Page96 CITY OF CHULA VISTA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2017 Additions: Taxes 3,870,883$ Interest and change in fair value of investments 351,031 Miscellaneous 625 Total Additions 4,222,539 Deductions: Administrative expenses 463,511 Contractual services 321,549 Interest expense 1,899,380 Depreciation expense 47,724 Total Deductions 2,732,164 Changes in Net Position 1,490,375 Net Position - Beginning of the Year (30,487,604) Restatements (1,448,110) Net Position - Beginning of the Year, as restated (31,935,714) Net Position - End of the Year (30,445,339)$ Private-Purpose Trust Fund Successor Agency of the Former Chula Vista RDA See Notes to Financial Statements2018-01-09 Agenda Packet Page97 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2017 NOTE DESCRIPTION PAGE 1 Reporting Entity and Summary of Significant Accounting Policies 55 2 Cash and Investments 68 3 Receivables 73 4 Interfund Balances and Transactions 78 5 Capital Assets 81 6 Long-Term Debt 83 7 Unearned/Deferred Revenue 96 8 Compensated Absences 97 9 Other Required Fund Disclosures 98 10 Self-Insurance Accrued Liabilities 99 11 Pension Plans 100 12 Post Retirement Health Benefits 108 13 Pollution Remediation Obligations 111 14 Commitments and Contingencies 112 15 Classification of Fund Balances 113 16 Prior Period Adjustments 114 17 Subsequent Events 114 2018-01-09 Agenda Packet Page98        2018-01-09 Agenda Packet Page99 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2017 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 primary government’s operation and so data from these units are combined with data of the primary government. Discretely presented 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 primary government. The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial accountability and operational responsibility. 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 Financing Authority (the “Public Financing Authority”) The Public Financing Authority was established by resolution, 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 resolution was adopted on April 4, 1995. The Public Financing Authority was established by a joint exercise of powers agreement between the City and the Redevelopment Agency. The 2018-01-09 Agenda Packet Page100 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued) governing body of the Public Financing Authority is comprised of the consenting members of the City Council. The Public 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 Chula Vista Municipal Financing Authority (the “Municipal Financing Authority”) The Municipal Financing Authority was established by resolution, 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 resolution was adopted on June 11, 2013. The Municipal Financing Authority was established by a joint exercise of powers agreement between the City and the Housing Authority. The governing body of the Municipal Financing Authority is comprised of the consenting members of the City Council. The Municipal 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 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. 2018-01-09 Agenda Packet Page101 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Government - Wide Financial Statements The City’s Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. 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: ¾ Charges for services ¾ Operating grants and contributions ¾ Capital grants and contributions 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 aggregate non-major governmental funds. An accompanying schedule is presented to reconcile and explain the differences in total fund balance 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) to fund balances. 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. 2018-01-09 Agenda Packet Page102 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) Revenues become available when received in cash, except for revenue which is subject to accrual and are recognized when due by the City. Generally 90 days after year-end for primary revenue sources (i.e. property tax, sales tax, intergovernmental revenues and other taxes). Revenue recognition for grants is up to one year. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Unavailable revenues arise when potential revenues do not meet both the “measurable” and “available” criteria for recognition in the current period. Unearned revenues arise when the government receives cash 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, unavailable and unearned revenue is removed from the Balance Sheet and recognized as revenue. The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. The City reports the following major Governmental Funds: General Fund – This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund. Sundry Grants Special Revenue Fund – This fund consists of miscellaneous grants/revenues such as: Supplemental law enforcement services, CBAG, California Library Services Act, asset seizure, local law enforcement block grants, California Recreation grants, Public Safety grants, ARRA grants, waste management and recycling, energy conservation, emergency shelter program, HOME program, CDBG program income project, and Community Development Block grants. Housing Successor Agency 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. 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. 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. 2018-01-09 Agenda Packet Page103 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) City Debt Service Fund – This fund was established to account for principal and interest payments on the City’s long-term loans. Public Financing Authority Debt Service Fund- 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. Municipal Financing Authority Debt Service Fund – This fund is used to account for the financing or refinancing activities for the acquisition, construction, and improvement of public capital improvements. 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 and aggregate non-major proprietary funds. 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. 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. 2018-01-09 Agenda Packet Page104 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued) The City reports the following major proprietary funds: Sewer Enterprise Fund – This fund consists of several sub-funds that are used to account for sewer activities: The Sewer Income Fund is a depository for all monies collected to cover the cost of connecting properties to the City's public sewer system. All monies received may be used only for the acquisition, construction, reconstruction, maintenance and operation of sanitation or sewerage facilities. 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. Development Services Fund – This fund is a depository for a portion of developer fees and other development related activities. Sewer Development Impact Fees Fund – This fund is a depository for sewer development impact fees (DIFs). Chula Vista Elite Athlete Training Center (CVEATC) Fund – This fund is used to account for the CVEATC’s activities in partnership with the CVEATC operator Elite Athlete Services (EAS). 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. 2018-01-09 Agenda Packet Page105 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) 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 and therefore do not report a net position. 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. It follows the economic resources basis of accounting similar to proprietary funds. 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. Therefore, the City has assigned a portion of its fund balance for future encumbrances. 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 loss on investments amounted to $649,761 for the fiscal year ended June 30, 2017. 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. 2018-01-09 Agenda Packet Page106 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents and Investments (Continued) Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas: ¾Interest Rate Risk ¾Credit Risk o Overall o Custodial Credit Risk o Concentration of Credit Risk ¾Foreign Currency Risk In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. E. Inventories and Prepaid items Inventories are valued on an average-cost basis which are adjusted to annual physical counts or estimates under the consumption method of accounting and are recorded in the internal service fund. Prepaid items are items the City has paid in advance and will receive future benefit from. They are recorded under the consumption method in the General Fund, Sundry Grants Special Revenue Fund and Sewer Fund. F. Restricted Assets Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of long-term debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of participation or tax allocation bonds and have been invested only as permitted by specific State statutes or applicable City ordinance, resolution or bond indenture. In addition, the City restricts cash deposits from developers that are refundable. 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 acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $10,000 for equipment and $50,000 for infrastructure. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: 2018-01-09 Agenda Packet Page107 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) H. Capital Assets (Continued) Buildings 50 years Improvements other than buildings 50 years Machinery and equipment 5-15 years Infrastructure 30-75 years The City defines infrastructure as the basic physical assets that allow the City to function. The assets include: ¾ Street system ¾ Sewer system ¾ 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. I. Compensated Absences Government-Wide Financial Statements For governmental and business-type activities, compensated absences are recorded as expenses and liabilities as incurred. Fund Financial Statements In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City’s policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such fund’s share of the unpaid liability is recorded as a long-term liability of the fund. 2018-01-09 Agenda Packet Page108 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) J. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. K. 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 relating to bond insurance, 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. 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. L. Deferred Outflows/Inflows of Resources In addition to assets, the statements of net position and governmental funds balance sheet will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has two items that qualify for reporting in this category. One is the deferred charge on refunding reported on the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second item relates to deferred outflows to the net pension liability reported in the statement of net position. These outflows are the results of contributions made after the measurement period, which are recognized in the following year, the net difference between projected and actual earnings on pension plan investments and differences between expected and actual experiences, which are deferred and amortized over the expected average remaining service life time. In addition to liabilities, the statements of net position and the governmental funds balance sheet will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of this item, one of which arises only under a modified accrual basis of which qualifies for reporting in this category. Accordingly, the first item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grant receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item relates to deferred inflows to the net pension liability reported in the statement of net position. 2018-01-09 Agenda Packet Page109 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) L. Deferred Outflows/Inflows of Resources (Continued) These inflows are the results of changes in assumptions and differences between expected and actual experiences, which are deferred and amortized over the expected average remaining service life time. M. Property Taxes 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’s tax calendar is from July 1 to June 30. Property taxes attach as a lien on property on January 1. Taxes are levied on July 1, based on the assessed values as of the lien date, 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 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 90 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. N. 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. O. 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. 2018-01-09 Agenda Packet Page110 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) P. 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 City 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 that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken (the adoption of another ordinance) to remove or revise the limitation. 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. City Council has by resolution, authorized the Director of Finance to assign fund balances. City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent year’s appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment. Unassigned – This amount is for any portion of the fund balances that do not fall into one of the above categories. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 2018-01-09 Agenda Packet Page111 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) Q. Spending and Reserve 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. 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 Fund 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. R. 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. 2018-01-09 Agenda Packet Page112 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 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, 2017. Fiduciary Funds Governmental Activities Business-Type Activities Total Statement of Net Position Total Cash and investments 127,847,136$ 101,454,785$ 229,301,921$ 12,460,926$ 241,762,847$ Restricted cash and investments: Held by City 791,245 - 791,245 15,048,347 15,839,592 Held by fiscal agents 5,707,801 - 5,707,801 30,815,164 36,522,965 Total restricted cash and investments 6,499,046 - 6,499,046 45,863,511 52,362,557 Total cash and investments 134,346,182$ 101,454,785$ 235,800,967$ 58,324,437$ 294,125,404$ Government-Wide Statement of Net Position Cash, cash equivalents and investments consisted of the following at June 30, 2017: Petty cash 9,625$ Deposits with financial institution 17,826,186 Investments 239,766,628 Investments held by fiscal agents 36,522,965 Total cash and investments 294,125,404$ A. Deposits The carrying amount of the City’s cash deposits were $17,826,186 at June 30, 2017. Bank balances before reconciling items were $20,623,104 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 $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. 2018-01-09 Agenda Packet Page113 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 2 – Cash and Investments (Continued) B. Investments As of June 30, 2017, the City had the following investments and maturities: Investment Type Fair Value 1 year or fewer 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years Over 5 years LAIF 1,651,133$ 1,651,133$ -$ -$ -$ -$ -$ Time Deposits 310,000 310,000 - - - - - San Diego County Investment Pool 87,631,333 87,631,333 - - - - - Federal National Mortgage Association 4,227,241 2,994,480 - 1,232,761 - - - Federal Home Loan Mortgage Corporation 5,985,000 5,985,000 - - - - - Federal Farm Credit Bank 614,582 614,582 - - - - - US Treasury Notes 58,774,478 - 25,902,231 26,461,617 6,410,630 - - Securities 50,572,529 7,820,965 15,033,542 20,050,600 7,667,422 - - Money Market Funds 30,000,332 23,966,813 6,033,519 - - - - Held by bond trustee: Mutual Funds 36,522,965 36,522,965 - - - - - Total 276,289,593$ 167,497,271$ 46,969,292$ 47,744,978$ 14,078,052$ -$ -$ Investment Maturities 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. 2018-01-09 Agenda Packet Page114 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 2 – Cash and Investments (Continued) B. Investments (Continued) Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio* Maximum Investment in One Issuer Bankers' Acceptance 180 days 40%5% Negotiable Certificates of Deposits 5 years 30%5% Commercial Paper 270 days 25%5% State and Local Agency Bond Issues 5 years None 5% U.S. Treasury Obligations 5 years None None U.S. Agency Securities 5 years None None Repurchase Agreement 90 days None 5% Reverse-Purchase Agreements 92 days 20%20% Medium-Term Corporate Notes 5 years 30%5% Time Certificates of Deposits 3 years None 5% Money Market Funds N/A 20%10% San Diego County Treasurer's Pooled Money Fund N/A None None Local Agency Investment Fund (LAIF)N/A None $50 Million** Shares of Beneficial Interest issued by a JPA N/A None None Asset Backed Securities 5 years 20%20% Supranationals 5 years 30%30% * Excluding amounts held by bond trustee that are not subject to California Government ** Maximum is $50 million per account 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. Authorized Investment Type Maximum Maturity Maximum Percentage of Portfolio Maximum Investment in 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 2018-01-09 Agenda Packet Page115 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 2 – Cash and Investments (Continued) 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, 2017, the City’s pooled cash and investments had the following maturities: Maturity Percentage of Investment Less than one year 55% 1 - 2 years 20% 2 - 3 years 20% 3 - 4 years 6% 4 - 5 years 0% Over 5 years 0% The weighted average maturity of the portfolio was 0.9 years. Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and moderate income neighborhoods. The City’s investments are rated by the nationally recognized statistical rating organizations as follows: Investment Type Fair Value Moody's Standard & Poor's LAIF 1,651,133$ Aa3 AA- Time Deposits 310,000 Not Rated Not Rated San Diego County Investment Pool 87,631,333 Aaa AAA Federal National Mortgage Association 4,227,241 Aaa AA+ Federal Home Loan Mortgage Corp.5,985,000 Aaa AA+ Federal Farm Credit Bank 614,582 Aaa AA+ US Treasury Notes 58,774,478 Aaa AA+ Securites 50,572,529 Baa1 to Aaa BBB+ to AAA Money Market Funds 66,523,297 Not Rated Not Rated 276,289,593$ 2018-01-09 Agenda Packet Page116 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 2 – Cash and Investments (Continued) C. Risks Disclosures (Continued) Custodial Credit Risk Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank. Concentration of Credit Risk The City’s investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of total City’s investments are as follows: Issuer Investment Type Fair Value Federal National Mortgage Association Federal Agencies 4,227,241$ Federal Home Loan Mortgage Corporation Federal Agencies 5,985,000 Federal Farm Credit Bank Federal Agencies 614,582 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. As of June 30, 2017, the City had $1,651,133 invested in LAIF. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2017, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The credit quality rating of LAIF is unrated as of June 30, 2017. 2018-01-09 Agenda Packet Page117 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 2 – Cash and Investments (Continued) E. Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2017: Totals123 U.S. Agency Securities 10,826,823$ -$ 10,826,823$ -$ U.S. Treasury Notes 58,774,478 58,774,478 - - Securities 50,572,529 - 50,572,529 - Time Deposits 310,000 - 310,000 - San Diego County Investment Pool 87,631,333 - 87,631,333 - Money Market Mutual Funds 30,000,332 - 30,000,332 - Held by Fiscal Agent: Cash & Money Market Mutual Funds 36,522,965 - 36,522,965 - Total Investments 274,638,460$ 58,774,478$ 215,863,982$ -$ Investments measured at net asset value Local Agency Investment Fund (LAIF) 1,651,133$ Totals 1,651,133 Total Investments 276,289,593$ Level Investment Type U.S. Treasury Notes classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Local Agency Investment Funds, U.S. Agency Securities, Corporate Notes, Time Deposits, San Diego County Investment Pool Funds and Money Market Mutual Funds classified in Level 2 of the fair value hierarchy are value using institutional bond quotes or specified fair market value factors. Note 3 – Receivables A. Taxes Receivable At June 30, 2017, the City had the following taxes receivable: Governmental Activities Sales Tax 9,694,862$ Property Tax 509,352 Utilities Users Tax 657,664 Transient Occupancy Tax 540,431 Franchise Fee Tax 2,358,785 Other Taxes 285,881 Total 14,046,975$ 2018-01-09 Agenda Packet Page118 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 3 – Receivables (Continued) B. Loans Receivable At June 30, 2017, the City had the following loans receivable, including principal and accrued interest, of which, an allowance for uncollectible loans was recorded in the amount of $50,030,085: Principal Interest Total South Bay Community Services (Trolley Trestle, Muncey Manor, CNV I, CNII, and NCV II) $ 3,880,292 $ 2,769,084 $ 6,649,376 Heritage and Sunrose Apartments (South Bay Community Villas L.P.) 3,993,832 54,512 4,048,344 Girls and Boys Club Construction Loan 56,250 - 56,250 Rancho Vista Housing (Chelsea Investment Corporation) 1,500,000 578,220 2,078,220 St. Regis Park (Chelsea Investment Corp) 1,387,152 1,367,372 2,754,524 Chula Vista Rehabilitation CHIP Loans 1,903,327 147,931 2,051,258 Park Village Apts (Civic Center Barrio Housing Corporation) 161,810 - 161,810 Mobile Home Assistance Programs (Orange Tree) 36,105 - 36,105 Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000 2,653,732 8,333,732 Main Plaza (Alpha III Development Inc.) 1,800,000 660,813 2,460,813 Seniors on Broadway (MAAC Project) 3,511,194 1,174,464 4,685,658 The Landings I & II (Chelsea Investment Corp) 8,971,233 1,170,140 10,141,373 First Time Home Buyers Program 5,192,127 18,855 5,210,982 NSP Rental Housing Program 1,210,800 201,588 1,412,388 Community Energy Retrofit Program 74,708 - 74,708 Lofts on Landis 1,700,000 188,486 1,888,486 41,058,830$ 10,985,197$ 52,044,027$ Governmental Activities South Bay Community Services In 1998, the former Chula Vista Redevelopment Agency (RDA) and City of Chula Vista 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 several properties throughout the City of Chula Vista. In fiscal year 1998, a loan to fund the Trolley Terrace 18-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, 2017, the outstanding balance of the loan was $6,649,376, which included an interest accrual of $2,769,084. 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 2018-01-09 Agenda Packet Page119 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 3 – Receivables (Continued) B. Loans Receivable (Continued) Heritage (South Bay Community Villas, L.P.) Continued 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, 2017, the outstanding balance of the loan was $4,048,344, which included an interest accrual of $54,512. 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. At June 30, 2017, the outstanding balance of the loan was $56,250. Rancho Vista Housing (Chelsea Investment Corporation) In 2000, the former RDA loaned $1,000,000 using low and moderate income housing funds and he City loaned $500,000 using HOME funds to CIC Eastlake, L.P. for the development and operation of Rancho Vista Housing Project, a multifamily housing project. The loan is secured by promissory notes and deed of trusts. 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, 2017, the outstanding balance of the loan was $2,078,220 which included an interest accrual of $578,220. St. Regis Park (Chelsea Investment Corporation) In 2000, the former RDA entered into a loan agreement with Chelsea Investment Corporation for the acquisition and rehabilitation of the 119-unit multi-family housing project (formerly known as 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, 2017, the outstanding balance of the loan was $2,754,524 which included an interest accrual of $1,367,372. Chula Vista Rehabilitation CHIP Loans The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the direct control of the Housing Authority acting as the Successor Housing Entity for those loans that were funded using low and moderate income housing funds. CHIP loans funded by CDBG or HOME funds are also managed by the Housing Authority. CHIP offers deferred and low interest rate home improvement loans to qualified borrowers residing within a target area. Loan repayments are re- deposited into the program cash accounts and are redistributed as future loans. At June 30, 2017, the outstanding balance of the loan was $2,051,258 which included an interest accrual of $147,931. 2018-01-09 Agenda Packet Page120 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 3 – Receivables (Continued) B. Loans Receivable (Continued) Park Village Apartments (Civic Center Barrio Housing Corporation) In 1991, the former 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 3% to 5% per annum on the unpaid principal balance of the note. At June 30, 2017, the outstanding balance of the loan was $161,810. Mobile Home Assistance Programs The former 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 2018 or when the property is sold. Contingent interest will be charged based on calculations specified in the agreement. At June 30, 2017, the outstanding balance of the loan was $36,105. Los Vecinos (Wakeland Housing and Development Corporation) In 2008, the former RDA entered into a loan agreement with Wakeland Housing and Development Corporation to assist the borrower in constructing 41 affordable multi-family rental housing units for occupancy by extremely low, very low, and low income households. The loan amount of $5,680,000 was funded by the Low and Moderate Income Housing Fund. The loan bears an interest rate of 5% per annum. Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the residual receipts for years 1-30 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, 2017, the outstanding balance of the loan was $8,333,732 which included an interest accrual of $2,653,732. Main Plaza (Alpha III Development Inc.) In 2003, the former RDA and City 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 City’s issuance of the Certificate of Completion, which is in 2061. At June 30, 2017, the outstanding balance of the loan was $2,460,813 which included an interest accrual of $660,813. Seniors on Broadway (MAAC Project) The City 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 City’s issuance of the Certificate of Completion. At 2018-01-09 Agenda Packet Page121 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 3 – Receivables (Continued) B. Loans Receivable (Continued) Seniors on Broadway (MAAC Project) Continued June 30, 2017, the outstanding balance of the loan was $4,685,658 which included an interest accrual of $1,174,464. The Landings I & II (Chelsea Investment Corporation) The City entered into a loan agreement with CIC Landings, L.P. to assist the borrower in constructing 91 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 City’s proportionate share of the Residual Receipts for the previous calendar year based upon a pro rata share of fifty percent (50%) of Residual Receipts with the California Department of Housing and Community Development and its Multi-Family Housing Program. The City and RDA entered into loan agreements with Landings II, L.P. to assist with constructing 141 affordable multi-family rental housing units for occupancy by very low and low income households. The loans are 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, 2017, the outstanding balance of the loan was $10,141,373 which included an interest accrual of $1,170,140. First Time Home Buyers Program The Chula Vista First-Time Homebuyer Program is under the direct control of the City and its Housing Authority. The Programs is funded through U.S. Department of Housing and Urban Development HOME Investment Partnership Act and Neighborhood Stabilization Program funds. Cal Home funds from the State of California Department of Housing and Community Development are also used to fund loans. The Program is currently administered by Springboard CDFI, (formerly known as Community Housing Works Realty and Lending). The program offers low interest loans or equity share deferred gap financing loans to qualified borrowers. Loan repayments are re-deposited into the program and are redistributed as future loans. At June 30, 2017, the outstanding balance of the loan was $5,210,982 which included an interest accrual of $18,855. NSP Rental Housing Program The City entered into a two separate loan agreements with San Diego Community Housing Corporation to acquire and rehabilitate rental housing for very low income households. The loans are secured by promissory notes and a deed of trusts. 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. At June 30, 2017, the outstanding balance of the loan was $1,412,388 which included an interest accrual of $201,588. 2018-01-09 Agenda Packet Page122 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 3 – Receivables (Continued) B. Loans Receivable (Continued) Community Retrofit Program The Chula Vista Community Energy Revolving Loan Fund (RLF) is under the direct control of the City of Chula Vista and was capitalized through the American Recovery & Reinvestment Act. The RLF offers fully amortized low-interest rate home energy improvement loans to qualified borrowers residing within Chula Vista. The loans are secured by a deed of trust on the properties. Principal and interest are payable monthly. Interest accrues annually on the unpaid principal balance of the notes. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans except for loans funded by General fund. At June 30, 2017, the outstanding balances of the loans were $5,314 and $69,394, respectively. Lofts on Landis The City has adopted a Housing Element of the General Plan which sets forth the objective of providing balances and varied housing opportunities throughout the City to satisfy needs and desires of various age, income and ethnic groups of the community. The Housing Authority found that the City’s financial participation in the development of the Landis Project will be a sound investment based upon the Developer’ ability to effectively service the City’s housing needs and priorities expressed in the housing Element and Consolidated plan. At June 30, 2017, the outstanding balance of the loan was $1,888,486 which included an interest accrual of $188,486. Note 4 – Interfund Balances and Transactions Due to/Due from other funds At June 30, 2017, interfund receivables and payables were as follows: CV Elite Athlete Nonmajor Due from Other Funds Training Center Enterprise Funds General Fund 4,187,570$ 5,767$ 940,966$ 4,925$ 27,092$ 3,063,456$ 8,229,776$ Total 4,187,570$ 5,767$ 940,966$ 4,925$ 27,092$ 3,063,456$ 8,229,776$ Due To Other Funds Sundry Grants Nonmajor Governmental Funds Total Development Services City Debt Service 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. 2018-01-09 Agenda Packet Page123 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 4 – Interfund Balances and Transactions (Continued) Long-Term Advances At June 30, 2017, balances were as follows: Sewer City Debt Service Development Fund Impact Fees Fund Total General Fund 1,489,995$ -$ 1,489,995$ Development Impacts Fund 8,160,323 - 8,160,323 Park Acquisition Development Fund 9,219,238 - 9,219,238 Sewer Enterprise Fund 91,089 19,415,983 19,507,072 Total 18,960,645$ 19,415,983$ 38,376,628$ Advances From Other Funds Advances to Other Funds City Council authorized loans to the Public Facilities DIF in the amount of $1,528,969 to help fund the Civic Center expansion. The loan will be repaid as funds become available, through the payment of DIF fees by developers. The balance was $1,489,995 at June 30, 2017. In accordance with Council Policy No. 220-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. Per Resolution 2015-035 of the City Council, interfund loans from the Transportation Development Impact Fee to the Fire Suppression System expansion component of the Public Development Impact Fee were consolidated into one loan totaling $10,500,000. The balance for the loan was $8,160,323 at June 30, 2017. In accordance with Council Policy No. 220-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. 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. Per Resolution 2015-035 of the City Council, these loans were consolidated. 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; in conjunction with Council Policy No 200-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $9,219,238 at June 30, 2017. The Agency will ensure that PAD funds are repaid to fully fund the development of the park for which they were originally collected. The City Council authorized and set terms for loans 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, via Resolution 2015-035. In accordance with Council Policy No. 220-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $19,507,072 at June 30, 2017. 2018-01-09 Agenda Packet Page124 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 4 – Interfund Balances and Transactions (Continued) Transfers In/Out Interfund transfers for the year ended June 30, 2017 were as follows: Sundry Grants Public Park Development City Chula Vista Municipal Development Internal Non-Major General Special Financing Acquisition Impact Debt Sewer Elite Athlete Financing Services Service Governmental Transfers Out Fund Revenue Fund Authority Development Fees Service Fund Training Center Authority Fund Funds Funds Total General Fund -$ 145,421$ 2,456,451$ -$ -$ -$ -$ 154,370$ 610,633$ 752,697$ 1,500,000$ 1,406,112$ 7,025,684$ Sundry Grants Special Revenue 107,585 - - - - - - - - - - 781,739 889,324 Public Financing Authority 30 - - - - - - - 26,488 - - 24,864 51,382 Park Acquistion Development - - - - - 80,000 - - - - - - 80,000 City Debt Service 1,728 - - 10,782 9,461 - 349 - - - - - 22,320 Sewer Fund 3,364,671 - - - - - - - - 15,937 - - 3,380,608 Municipal Financing Authority - - 28,091,002 - - - - - - - - - 28,091,002 Developmen t Services Fund 1,796,648 - - - - - - - - - - - 1,796,648 Development Impact - - 3,543,859 - - - - - 1,534,320 - - - 5,078,179 Sewer Development Impact - - - - - - 22,627 - - - - - 22,627 Non-Major Governmental Funds 4,896,266 67,935 662,149 - - 210,000 - - - 73,125 - 30,620 5,940,095 Total 10,166,928$ 213,356$ 34,753,461$ 10,782$ 9,461$ 290,000$ 22,976$ 154,370$ 2,171,441$ 841,759$ 1,500,000$ 2,243,335$ 52,377,869$ Transfers In General Fund – Operating support to reimburse the General Fund for City staff services and equipment. Total amount of reimbursement was $10,166,928. Sundry Grants Special Revenue Fund – Transferring the General Fund’s matching contribution to the federal grants in the amount of $213,356. Public Financing Authority – Funding debt service funds for repayment of various long-term obligations amounted to $6,662,459. Refunding of the 2010 COP (PFA) by the 2016 LRRB (MFA) amounted to $28,091,002. Park Acquisition Development – Interfund loan repayment for long-term obligation between the Western PAD and the Eastern PAD amounted to $10,782. Development Impact Fees – Interfund loan repayment for long-term obligation amounted to $9,461. City Debt Service – Interfund loan repayments of $290,000 between governmental funds was tracked through this fund. Sewer Fund – Interfund loan repayment for long-term obligation between Salt Creek Trunk Sewer DIF and Trunk Sewer Capital Reserve Fund; and between the Storm Drain Revenue Fund and the Sewer Facility Replacement Fund. Chula Vista Elite Athlete Training Center - Reimbursements from General fund: $39,324 for telecom site license fee and $115,046 for billed/unpaid utility expenses. Municipal Financing Authority - Funding debt service fund for repayment of long-term obligation amounted to $2,171,441. Development Services Fund - Operating support to reimburse the Development Services Fund for services provided; $752,697 reimbursement from the General Fund; $15,937 from Sewer Services; and $73,125 from the Chula Vista Housing Authority. Internal Service Funds - $1,500,000 was transferred to the Worker’s Compensation fund to reimburse the fund for worker’s compensation expenses. 2018-01-09 Agenda Packet Page125 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 4 – Interfund Balances and Transactions (Continued) Transfers In/Out Continued Non-major Governmental Funds - Funding debt service funds for repayment of various long-term obligations amounted to $2,243,335. Transfer from General Fund in the amount of $1,406,112 for various debt obligations. Transfer from Community Development Block Grant (CDBG) to Section 108 Loan in the amount of $759,858 and repayment of energy conservation loan of $21,881. Transfer from 2010 Certificates of Participation to fund Otay Ranch Village 1 AD 97-2 in the amount of $24,864. Various transfers between Non-Major Funds in the amount of $30,620. Note 5 – Capital Assets A. Government-Wide Financial Statements Summary of changes in capital assets for governmental activities for the year ended June 30, 2017 are as follows: Balance July 1, 2016,CIP Balance as restated Additions Deletions Transfers June 30, 2017 Capital assets, not being depreciated: Land 436,830,968$ -$ -$ -$ 436,830,968$ Construction in progress 42,723,129 15,243,272 - (13,256,906) 44,709,495 Total capital assets, not being depreciated 479,554,097 15,243,272 - (13,256,906) 481,540,463 Capital assets, being depreciated: Buildings 204,944,548 - - - 204,944,548 Improvements other than buildings 129,569,741 - - 2,799,998 132,369,739 Machinery and equipment 31,065,223 2,507,572 (959,905) - 32,612,890 Infrastructure 731,384,812 3,466,657 - 10,456,908 745,308,377 Subtotal 1,096,964,324 5,974,229 (959,905) 13,256,906 1,115,235,554 Less accumulated depreciation Buildings (53,310,516) (4,010,519) - - (57,321,035) Improvements other than buildings (49,039,661) (2,614,017) - - (51,653,678) Machinery and equipment (25,200,167) (1,635,002) 948,864 - (25,886,305) Infrastructure (294,491,938) (20,027,968) - - (314,519,906) Subtotal (422,042,282) (28,287,506) 948,864 - (449,380,924) Total capital assets, being depreciated 674,922,042 (22,313,277) (11,041) 13,256,906 665,854,630 Total governmental activities 1,154,476,139$ (7,070,005)$ (11,041)$ -$ 1,147,395,093$ 2018-01-09 Agenda Packet Page126 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 5 – Capital Assets (Continued) A. Government-Wide Financial Statements (Continued) Depreciation expense was charged to functions/programs as follows: General government 1,367,590$ Public safety 2,673,121 Public works 21,125,480 Parks and recreation 2,490,283 Library 237,741 Internal service 393,291 28,287,506$ Summary of changes in capital assets for business-type activities for the year ended June 30, 2017, are as follows: Balance CIP Balance July 1, 2016 Additions Deletions Transfers June 30, 2017 Capital assets, not being depreciated: Land -$ 180,677,144$ -$ -$ 180,677,144$ Construction in progress 1,264,833 2,361,613 - (1,514,117) 2,112,329 Total capital assets, not being depreciated 1,264,833 183,038,757 - (1,514,117) 182,789,473 Capital assets, being depreciated: Buildings and structures - 17,027,588 - - 17,027,588 Machinery and equipment 4,844,634 1,588,498 (608,720) - 5,824,412 Infrastructure 245,367,447 - - 1,514,117 246,881,564 Subtotal 250,212,081 18,616,086 (608,720) 1,514,117 269,733,564 Less accumulated depreciation Buildings and structures - (170,276) - - (170,276) Machinery and equipment (3,021,544) (699,637) 608,720 - (3,112,461) Infrastructure (112,465,519) (5,575,268) - - (118,040,787) Subtotal (115,487,063) (6,445,181) 608,720 - (121,323,524) Total capital assets, being depreciated 134,725,018 12,170,905 - 1,514,117 148,410,040 Total business-type activities 134,368,634$ 195,209,662$ -$ -$ 331,199,513$ Depreciation expense for business-type activities for the year ended June 30, 2017, are as follows: CV Elite Training Center 170,276$ Sewer 6,271,870 Sewer DIFS 3,035 6,445,181$ 2018-01-09 Agenda Packet Page127 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 5 – Capital Assets (Continued) B. Fiduciary Funds Financial Statements Summary of changes in capital assets for fiduciary funds for the year ended June 30, 2017, are as follows: Balance July 1, 2016, Balance as restated Additions Deletions June 30, 2017 Capital assets, not being depreciated: Land 7,676,605$ -$ -$ 7,676,605$ Total capital assets, not being depreciated 7,676,605 - - 7,676,605 Capital assets, being depreciated: Buildings 2,386,218 - - 2,386,218 Subtotal 2,386,218 - - 2,386,218 Less accumulated depreciation Buildings (1,301,740) (47,724) - (1,349,464) Subtotal (1,301,740) (47,724) - (1,349,464) Total capital assets, being depreciated 1,084,478 (47,724) - 1,036,754 Total fiduciary activities 8,761,083$ (47,724)$ -$ 8,713,359$ Depreciation expense for fiduciary funds for the year ended June 30, 2017, was $47,724. Note 6 – Long-Term Debt Governmental Activities Long-Term Debt A summary of changes in governmental activities long-term debt for the year ended June 30, 2017, is as follows: Balance Debt Debt Balance Due within Due in More June 30, 2016 Issued Retired June 30, 2017 One Year Than One Year Certificate of Participation 111,195,000$ 34,485,000$ (39,655,000)$ 106,025,000$ 4,635,000$ 101,390,000$ Section 108 Loan 7,161,000 - (404,000) 6,757,000 425,000 6,332,000 Notes Payable 4,338,577 - (532,991) 3,805,586 536,098 3,269,488 Capital Leases 2,467,714 1,285,053 (473,064) 3,279,703 472,253 2,807,450 Bond Premium 5,246,819 2,836,273 (479,604) 7,603,488 - 7,603,488 Bond Discount (540,623) - 540,623 - - - Total 129,868,487$ 38,606,326$ (41,004,036)$ 127,470,777$ 6,068,351$ 121,402,426$ Classification 2018-01-09 Agenda Packet Page128 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation Balance Debt Debt Balance Due within Due in More June 30, 2016 Issued Retired June 30, 2017 One Year Than One Year 2006 COP Civic Ctr Ph2 8,755,000$ -$ (8,755,000)$ -$ -$ -$ 2010 Refunding COP Corp Yard 26,200,000 - (26,200,000) - - - 2014 Refunding COP 42,835,000 - (1,665,000) 41,170,000 1,730,000 39,440,000 2015 Refunding COP 33,405,000 - (1,565,000) 31,840,000 1,620,000 30,220,000 2016 Refunding COP - 8,600,000 - 8,600,000 - 8,600,000 2016 Lease Revenue Refunding Bo - 25,885,000 (1,470,000) 24,415,000 1,285,000 23,130,000 Total 111,195,000$ 34,485,000$ (39,655,000)$ 106,025,000$ 4,635,000$ 101,390,000$ Classification 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 bonds were partially refunded in the prior year with the issuance of the 2015 Refunding Certificates of Participation and fully refunded in the current year with the issuance of the 2016 Refunding Certificates of Participation. 2010 Refunding COP Corp Yard In February 2010, the Chula Vista Public Financing Authority (Authority) issued $29,355,000 in 2010 Certificates of Participation to provide funds for the construction, reconstruction, modernization and equipping of Phase 3 of the Civic Center Complex of the City of Chula Vista, to refinance the City’s outstanding Certificates of Participation Series A of 2000 (2000 Financing Project), fund capitalized interest, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semiannually on March 1 and September 1 of each year, commencing September 1, 2010. The bonds were fully refunded in the current year with the issuance of the 2016 Lease Revenue Refunding Bonds. 2018-01-09 Agenda Packet Page129 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation (Continued) 2014 Refunding COP In February 2014, the Chula Vista Public Financing Authority (Authority) issued $45,920,000 in 2014 Certificates of Participation to refinance the City’s outstanding 2002 Certificates of Participation (Police Facility Project), 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 April 1 and October 1 of each year, commencing October 1, 2014. The certificates mature in 2032 and principal is payable on October 1 each year, commencing October 1, 2014. As of June 30, 2017, the outstanding balance is $41,170,000. The annual debt service requirements for the 2014 Certificates of Participation outstanding at June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 1,730,000$ 1,867,131$ 3,597,131$ 2019 1,810,000 1,791,806 3,601,806 2020 1,895,000 1,703,706 3,598,706 2021 2,000,000 1,606,331 3,606,331 2022 2,100,000 1,503,831 3,603,831 2023-2027 12,280,000 5,784,406 18,064,406 2028-2032 15,770,000 2,433,981 18,203,981 2033 3,585,000 73,941 3,658,941 Total 41,170,000$ 16,765,133$ 57,935,133$ 2015 Refunding COP In August 2015, the Chula Vista Public Financing Authority (Authority) issued $34,330,000 in 2015 Certificates of Participation to refinance the City’s outstanding 2004 Certificates of Participation (Civic Center Project Phase) and a portion of the 2006 Certificates of Participation (Civic Center Project Phase II), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $445,970, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $4,384,723 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $3,073,833. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2016. The certificates mature in 2034 and principal is payable on March 1 each year, commencing October 1, 2015. As of June 30, 2017, the outstanding balance is $31,840,000. 2018-01-09 Agenda Packet Page130 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation (Continued) 2015 Refunding COP Continued The annual debt service requirements for the 2015 Certificates of Participation outstanding at June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 1,620,000$ 1,306,063$ 2,926,063$ 2019 1,680,000 1,241,263 2,921,263 2020 1,765,000 1,157,263 2,922,263 2021 1,860,000 1,069,013 2,929,013 2022 1,945,000 976,013 2,921,013 2023-2027 10,280,000 3,511,688 13,791,688 2028-2032 8,730,000 1,779,344 10,509,344 2033-2034 3,960,000 243,675 4,203,675 Total 31,840,000$ 11,284,322$ 43,124,322$ 2016 Refunding COP In July 2016, the Chula Vista Public Financing Authority (Authority) issued $8,600,000 in 2016 Certificates of Participation (Certificates) to current refund all of the City’s outstanding 2006 Certificates of Participation (Civic Center Project – Phase 2), to satisfy the reserve requirement with respect to the Certificates and to pay the costs of issuance of the Certificates. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $221,204, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $1,144,525 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $973,849. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2017. The certificates mature in 2036 and principal is payable on March 1 each year, commencing March 1, 2027. As of June 30, 2017, the outstanding balance is $8,600,000. 2018-01-09 Agenda Packet Page131 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation (Continued) 2016 Refunding COP Continued The annual debt service requirements for the 2016 Certificates of Participation outstanding at June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 -$ 282,550$ 282,550$ 2019 - 282,550 282,550 2020 - 282,550 282,550 2021 - 282,550 282,550 2022 - 282,550 282,550 2023-2027 735,000 1,412,750 2,147,750 2028-2032 4,070,000 1,026,650 5,096,650 2033-2036 3,795,000 289,050 4,084,050 Total 8,600,000$ 4,141,200$ 12,741,200$ 2016 Lease Revenue Refunding Bonds In July 2016, the Chula Vista Municipal Financing Authority (Authority) issued $25,885,000 in 2016 Lease Revenue Refunding Bonds to refinance an existing lease by advance refunding the City’s outstanding 2010 Certificates of Participation (Capital Facilities Refunding Projects) and to pay the costs of issuance of the Bonds. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $4,898,948, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $2,167,047 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $2,293,798. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Interest is payable semi-annually on November 1 and May 1 of each year, commencing November 1, 2016. The certificates mature in 2033 and principal is payable on May 1 each year, commencing May 1, 2017. As of June 30, 2017, the outstanding balance is $24,415,000. 2018-01-09 Agenda Packet Page132 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) A. Certificates of Participation (Continued) 2016 Lease Revenue Refunding Bonds (Continued) The annual debt service requirements for the 2016 Lease Revenue Refunding Bonds outstanding at June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 1,285,000$ 858,625$ 2,143,625$ 2019 1,330,000 820,075 2,150,075 2020 1,370,000 780,175 2,150,175 2021 1,410,000 739,075 2,149,075 2022 1,460,000 682,675 2,142,675 2023-2027 8,245,000 2,487,775 10,732,775 2028-2032 8,430,000 1,057,775 9,487,775 2033 885,000 24,338 909,338 Total 24,415,000$ 7,450,513$ 31,865,513$ A. Section 108 Loan In June 2008, the City entered into a Contract for Loan Guarantee Assistance with the U.S. Department of Housing and Urban Development (“HUD”) as part of the Section 108 Loan Program in the amount of $9,500,000. The Section 108 Loan is an “advance” of future CDBG entitlement funds and, as such, is repaid with a portion of the City’s annual entitlement. Proceeds of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future CDBG entitlements for 20 years, with interest payments beginning with fiscal year 2009. As of June 30, 2017, the outstanding balance is $6,757,000. The annual debt service payments are as follows: Year Ending June 30, Principal Interest Total 2018 425,000$ 337,118$ 762,118$ 2019 446,000 317,126 763,126 2020 468,000 295,428 763,428 2021 492,000 271,830 763,830 2022 516,000 246,599 762,599 2023-2027 2,994,000 793,574 3,787,574 2028-2029 1,416,000 77,475 1,493,475 Total 6,757,000$ 2,339,150$ 9,096,150$ 2018-01-09 Agenda Packet Page133 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) B. Notes Payable Balance Debt Debt Balance Due within Due in More June 30, 2016 Issued Retired June 30, 2017 One Year Than One Year Taxable QECB Lease Purchase Agreement 1,636,034$ -$ (186,000)$ 1,450,034$ 187,693$ 1,262,341$ California Energy Commission (CEC) Loan #1 4,344 - (4,344) - - - California Energy Commission (CEC) Loan #2 1,520,749 - (132,530) 1,388,219 136,537 1,251,682 California Energy Commission (CEC) Loan #3 1,074,068 - (174,579) 899,489 176,329 723,160 SDG&E OBF Loan #1 (Parkway Boiler)42,588 - (8,519) 34,069 8,519 25,550 SDG&E OBF Loan #2 (Transit HVAC)60,794 - (27,019) 33,775 27,020 6,755 Total CEC Loans/SDG&E On Bill Financing 2,702,543 - (346,991) 2,355,552 348,405 2,007,147 Total 4,338,577$ -$ (532,991)$ 3,805,586$ 536,098$ 3,269,488$ Classification Taxable QECB Lease/Purchase Agreement On December 31, 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, 2017, the outstanding balance is $1,450,034. The annual debt service requirements are as follows: Year Ending June 30, Principal Interest Total 2018 187,693$ 55,568$ 243,261$ 2019 189,401 48,118 237,519 2020 191,125 40,600 231,725 2021 192,864 33,015 225,879 2022 194,619 25,360 219,979 2023-2025 494,332 29,452 523,784 Total 1,450,034$ 232,113$ 1,682,147$ California Energy Commission Loans/SDG&E On-Bill Financing On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the City’s participation in the California Energy Commission (“CEC”) and the SDG&E On-Bill Financing program. The loans would bridge the financial gap between energy conservation project capital costs and the available rebates for energy conservation equipment. As of June 30, 2017, the outstanding balance is $2,355,552. The annual debt service requirements are as follows: 2018-01-09 Agenda Packet Page134 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) B. Notes Payable (Continued) California Energy Commission Loans/SDG&E On-Bill Financing (Continued) Year Ending June 30, Principal Interest Total 2018 348,405$ 49,190$ 397,595$ 2019 334,034 43,296 377,330 2020 333,218 37,357 370,575 2021 339,497 31,078 370,575 2022 337,311 24,745 362,056 2023-2026 663,087 45,586 708,673 Total 2,355,552$ 231,252$ 2,586,804$ C. Capital Leases Balance Debt Debt Balance Due within Due in More June 30, 2016 Issued Retired June 30, 2017 One Year Than One Year Solar Energy Financing 1,731,726$ -$ (192,191)$ 1,539,535$ 179,976$ 1,359,559$ Osh Kosh Capital 422,583 - (79,771) 342,812 82,076 260,736 Marlin Panasonic 313,405 - (90,035) 223,370 95,579 127,791 PNC Equipment - 1,285,053 (111,067) 1,173,986 114,622 1,059,364 Total 2,467,714$ 1,285,053$ (473,064)$ 3,279,703$ 472,253$ 2,807,450$ Classification Solar Energy Financing On July 23, 2013, the City Council approved Resolution 2013-149 authorizing the City to utilize a $2,121,500 Tax-Exempt Facility Lease Purchase Agreement with Banc of America, which would be repaid through the annual energy cost savings. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 179,976$ 59,188$ 239,164$ 2019 125,834 51,893 177,727 2020 68,576 48,105 116,681 2021 74,259 45,339 119,598 2022 80,242 42,346 122,588 2023-2027 502,477 157,997 660,474 2028-2031 508,171 44,475 552,646 Total 1,539,535$ 449,343$ 1,988,878$ 2018-01-09 Agenda Packet Page135 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) C. Capital Leases (Continued) Osh Kosh Capital On October 1, 2013, the City Council approved Resolution 2013-204 authorizing the City to enter into a seven-year lease purchase agreement with Osh Kosh Capital for the acquisition of a Pierce Arrow XT Triple Combination Pumper Fire Engine at a price of $578,224. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 82,076$ 9,907$ 91,983$ 2019 84,448 7,535 91,983 2020 86,888 5,095 91,983 2021 89,400 2,584 91,984 Total 342,812$ 25,121$ 367,933$ Marlin Panasonic On March 4, 2015, the City Council approved Resolution 2015-044 authorizing the City to enter into a five-year lease purchase agreement with Marlin Business Bank for the acquisition of 99 Panasonic Toughbooks at a price of $377,487. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 95,579$ 10,784$ 106,363$ 2019 101,464 4,899 106,363 2020 26,327 263 26,590 Total 223,370$ 15,946$ 239,316$ 2018-01-09 Agenda Packet Page136 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Governmental Activities Long-Term Debt (Continued) C. Capital Leases (Continued) PNC Equipment Lease In November 2015, the City entered into a capital lease agreement with PNC Equipment Finance for the acquisition of two Pierce Arrow XT Triple Combination Pumper/Fire Engines. The lease term is ten years and the lease amount is $1,285,053 to be paid in annual installments beginning November 2016. The future minimum lease obligation and the net present value of these minimum lease payments as of June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 114,622$ 37,567$ 152,189$ 2019 118,289 33,900 152,189 2020 122,075 30,114 152,189 2021 125,981 26,208 152,189 2022 130,012 22,177 152,189 2023-2026 563,007 45,750 608,757 Total 1,173,986$ 195,716$ 1,369,702$ Fiduciary Funds Long-Term Debt A. Tax Allocation Bonds Balance Debt Debt Balance Due within Due in More June 30, 2016 Issued Retired June 30, 2017 One Year Than One Year 2006 Senior Tax Allocation Refunding Bonds, Series A 8,770,000$ -$ (8,770,000)$ -$ -$ -$ 2006 Subordinate Tax Allocation Refunding Bonds, Series B 8,245,000 - (8,245,000) - - - 2008 Tax Allocation Refunding Bonds 20,450,000 - (20,450,000) - - - 2016 Tax Allocation Refunding Bonds - 29,315,000 29,315,000 1,385,000 27,930,000 Bond Premium - 4,687,799 (234,390) 4,453,409 - - Total 37,465,000$ 34,002,799$ (37,699,390)$ 33,768,409$ 1,385,000$ 27,930,000$ Classification 2018-01-09 Agenda Packet Page137 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Fiduciary Funds Long-Term Debt (Continued) A. Tax Allocation Bonds (Continued) 2006 Senior Tax Allocation Refunding Bonds, Series A In July 2006, the RDA issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount of $13,435,000 to refinance the RDA’s outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds, Series A, and to satisfy the reserve requirement for the Bonds and provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of property, demolition, relocation, public improvements and funding the Low and Moderate Income Housing Project. The bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. The bonds were fully refunded in the current year with the issuance of the 2016 Tax Allocation Refunding Bonds. 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 are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. The bonds were fully refunded in the current year with the issuance of the 2016 Tax Allocation Refunding Bonds. 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 are payable solely from certain tax increment revenues of the Agency and other funds held under the indenture. The bonds were fully refunded in the current year with the issuance of the 2016 Tax Allocation Refunding Bonds. 2018-01-09 Agenda Packet Page138 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Fiduciary Funds Long-Term Debt (Continued) A. Tax Allocation Bonds (Continued) 2016 Tax Allocation Refunding Bonds In July 2016, the Successor Agency to the Redevelopment Agency of the City of Chula Vista (the Successor Agency) issued $29,315,000 in 2016 Tax Allocation Refunding Bonds to refinance the following obligations of the Former Agency: x Bayfront/Town Centre Redevelopment Project 2006 Senior Tax Allocation Refunding Bonds, Series A, currently outstanding in the principal amount of $8,770,000; x Bayfront/Town Centre Redevelopment Project 2006 Subordinate Tax Allocation Refunding Bonds, Series B, currently outstanding in the principal amount of $8,245,000; and x 2008 Tax Allocation Refunding Bonds (Merged Redevelopment Project), currently outstanding in the principal amount of $20,450,000. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $1,669,678, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $9,561,410 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $4,617,835. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2017. The certificates mature in 2037 and principal is payable on October 1 each year, commencing October 1, 2017. As of June 30, 2017, the outstanding balance is $29,315,000. The annual debt service requirements for the 2016 Tax Allocation Refunding Bonds outstanding at June 30, 2017, are as follows: Year Ending June 30, Principal Interest Total 2018 1,385,000$ 1,171,750$ 2,556,750$ 2019 1,665,000 1,132,925 2,797,925 2020 1,725,000 1,082,075 2,807,075 2021 1,770,000 1,020,800 2,790,800 2022 1,840,000 948,600 2,788,600 2023-2027 9,665,000 3,566,900 13,231,900 2028-2032 5,370,000 1,902,250 7,272,250 2033-2037 5,895,000 605,000 6,500,000 Total 29,315,000$ 11,430,300$ 40,745,300$ 2018-01-09 Agenda Packet Page139 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) Fiduciary Funds Long-Term Debt (Continued) A. Tax Allocation Bonds (Continued) Pledged Revenues The Successor Agency has pledged tax revenues to the repayment of the RDA’s debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds, whichever comes first. Tax revenues consist of 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 2017 was $3,589,342 and total debt service of all Tax Allocation Bonds paid was $849,680. The Bonds required 75% of net distributions. In future years, annual principal and interest payments on the Tax Allocation Bonds are expected to require 75% of Redevelopment Property Tax Trust Fund distributions. Special Assessment Debt – Non-City Obligations Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured by liens against the assessed properties. The City acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore, none of the following obligations are included in the accompanying basic financial statements. At June 30, 2017, the special assessment debts outstanding are as follows: Original Outstanding Amount June 30, 2017 Special Tax Revenue Refunding Bonds, Series 2013 72,100,000$ 63,625,000$ Special Tax Revenue Refunding Bonds, Series 2015A 30,460,000 29,770,000 Revenue Refunding Bonds, Series 2015B 43,695,000 41,860,000 AD 94-I Eastlake Greens Phase II 7,464,474 1,485,000 Industrial Development Revenue Bonds, 2004 Series A-F 251,265,000 251,265,000 Industrial Development Revenue Bonds, 2006 Series A 161,240,000 161,240,000 Total 566,224,474$ 549,245,000$ 2018-01-09 Agenda Packet Page140 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 6 – Long-Term Debt (Continued) 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, 2017, the multi-family housing bonds outstanding are as follows: Original Outstanding Amount June 30, 2017 2000 A Pear Tree Manor Project 5,779,000$ 3,999,000$ 1999 A Villa Serena Project 5,566,500 4,350,000 2007 A Oxford Terrace Apartments 2,276,000 1,721,000 2007 B Oxford Terrace Apartments 2,363,000 2,363,000 2006 A Teresina Apartment Projects 37,940,000 37,940,000 2007 C The Landing Apartment 16,670,000 5,714,347 2013 A Congregational Tower 20,540,000 20,186,520 2016 A-1 Duetta Apts Homes 1,813,855 13,520,501 2016 A-3 Duetta Apts Homes Junior 725,000 725,000 2016 B-1 Volta Apts Homes 3,089,522 14,461,127 2016 B-3 Volga Apts Homes Junior 775,000 775,000 Total 97,537,877$ 105,755,495$ Note 7 – Unearned/Unavailable Revenue A. Government-Wide Financial Statements At June 30, 2017, unearned revenue was reported as follows: Grants 1,087,270$ Total 1,087,270$ B. Governmental Fund Financial Statements At June 30, 2017, unavailable revenue was reported as follows: Long-term receivables 4,843,523$ Public Facilities DIF 1,203,496 Grants 52,899 Total 6,099,918$ 2018-01-09 Agenda Packet Page141 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 8 – Compensated Absences Government-Wide Financial Statements – Governmental Activities Summary of changes in governmental activities compensated absences for the year ended June 30, 2017, is as follows: Balance Balance Due within Due in More June 30, 2016 Additions Deletions June 30, 2017 One Year Than One Year Compensated Absences 7,246,998$ 5,134,743$ (5,036,943)$ 7,344,798$ 5,104,918$ 2,239,880$ Total 7,246,998$ 5,134,743$ (5,036,943)$ 7,344,798$ 5,104,918$ 2,239,880$ Classification The City’s liability for vested and unpaid compensated absences (accrued vacation) has been accrued and amounts to $7,344,978 at June 30, 2017. For the governmental activities claims and judgments and compensated absences are generally liquidated by the general fund. In business-type funds, the liabilities are reported in the fund as the benefits vest and are earned. Compensated absences at June 30, 2017, are obligations of the following funds: Governmental Funds 7,296,091$ Fleet Management 48,707 Total 7,344,798$ Governmental-Wide Financial Statements – Business-Type Activities Compensated absences at June 30, 2017, are obligations of the following funds: Balance Balance Due within Due in More June 30, 2016 Additions Deletions June 30, 2017 One Year Than One Year Compensated Absences 672,133$ 428,255$ (491,492)$ 608,896$ 454,096$ 154,800$ Total 672,133$ 428,255$ (491,492)$ 608,896$ 454,096$ 154,800$ Classification Development Services 360,516$ Sewer 248,380 608,896$ 2018-01-09 Agenda Packet Page142 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 9 – Other Required Fund Disclosures At June 30, 2017, the following non-major funds had deficit fund equity: Fund Type Funds Deficit Capital Projects Bicycle Facility 4,460$ Capital Projects Other Transportation Program Fund 171,768 Capital Projects Capital Projects Fund 245,921 Enterprise Transit Fund 513,688 Internal Service Fleet Management 315,823 Bicycle Facility – The Bicycle Facility Fund had an accumulated deficit of $4,460 due to non-reimbursable expenditures that were incurred. The City does not expect to eliminate the deficit. Other Transportation Program Fund – The Other Transportation Program Fund had an accumulated deficit of $171,768 due to unreimbursed funds. The City expects to eliminate the deficit in future years when the funds are reimbursed. Capital Projects Fund – The Capital Projects Fund had an accumulated deficit of $245,921 due to unreimbursed funds. The City expects to eliminate the deficit in future years when the funds are reimbursed. Transit Fund – The Transit Fund had an accumulated deficit of $513,688, due to the implementation of GASB 68. The City expects to eliminate the deficit in future years via transfers from other funds. Fleet Management Fund – The Fleet Management Fund had an accumulated deficit of $315,823, due to the implementation of GASB 68. The City expects to eliminate the deficit in future years via transfers from other funds. Note 10 – Self-Insurance Accrued Liabilities The City, in compliance with its workers’ compensation obligations, has a self-insurance workers’ compensation program. Currently, Tristar administers the program on behalf of the City under an agreement between Tristar and San Diego Pooled Insurance Program Authority ("SANDPIPA"; 'SANDPIPA Agreement"). The City along with other cities in the county, are participants in the agreement. SANDPIPA, as an entity, is dissolving and the SANDPIPA Agreement will end on July 31, 2016. The City seeks to continue to have Tristar administer the City's self-insurance workers’ compensation program for an additional eleven months, until June 30, 2017. California employers, including the cities, are required to provide for workers’ compensation when the employees are injured on the job and the City of Chula Vista, in compliance with its workers compensation obligations, has a self-insurance workers’ compensation program. To administer City of Chula Vista's workers’ compensation program. The City requires a qualified workers’ compensation claims management service company (commonly called "Third Party Administrators" or "TPA") to supervise and administer the workers’ compensation claims made upon the City's self-insurance program. 2018-01-09 Agenda Packet Page143 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 10 – Self-Insurance Accrued Liabilities (Continued) Tristar, for many years, has provided to the City workers compensation claims management services via an agreement between Tristar and SANDPIPA("SANDPIPA Agreement"). The City, along with other cities in the county, was a participant in the aforementioned SANDPIPA Agreement. SANDPIPA is dissolving as an entity and the SANDPIPA Agreement will expires on July 31, 2016. As a result, the City will no longer have an agreement with Trista to administer the City's workers compensation program. The City desires to enter into an agreement with Tristar ("Tristar Agreement") so that Tristar can continue to supervise and administer the workers compensation claims made upon the City's self-insurance workers compensation program for an addition eleven (11) month period, ending June 30, 2017. Tristar as provided workers’ compensation program administration services to the City in the past and can continue to do so for the term in the proposed agreement, with no interruption in the service, particular given that the SANDPIPA Agreement will end on July 31, 2016. 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, 2017, there are 277 member entities participating in the program that offers per occurrence coverage up to $5,000,000 through pooled resources and from $5,000,000 to statutory limits via group purchased excess insurance policies. Only the probable amounts of loss as estimated by the City’s Risk Manager and Attorney, including an estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic financial statements. There were no reductions in insurance from the prior year and there were no insurance settlements that exceeded coverage in each of the past three years. The aggregate change in the balance of claims payable as recorded in the Governmental Activities were as follows: Balance Claims and Claims Balance June 30, 2016 Changes in Estimates Payments June 30, 2017 2014-2015 22,361,235$ 4,470,778$ (4,221,708)$ 22,610,305$ 2015-2016 22,610,305 6,077,047 (6,218,413) 22,468,939 2016-2017 22,468,939 8,274,909 (8,438,119) 22,305,729 The City determines that $4,000,000 of the $22,305,729 to be short term. The liabilities for claims and judgments are typically liquidated from the General Fund. 2018-01-09 Agenda Packet Page144 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans A. California Public Employees’ Retirement Plans Plan Description All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan or the City’s Safety Plan, both agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 (52 under PEPRA) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plan’s provisions and benefits in effect at June 30, 2017, are summarized as follows: 2018-01-09 Agenda Packet Page145 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans Benefits Provided (Continued) Miscellaneous Plan Tier 1*Tier 2 PEPRA Hire date Prior to April 22, 2011 New Member on or after April 22, 2011 but prior to January 1, 2013 New Member on or after January 1, 2013 Benefit formula 3% @ 60 2% @ 60 2% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 52 Monthly benefits, as a % of eligible compensation 2.0% to 3.0%1.092% to 2.418% 1.0% to 2.5% Required employee contribution rates 8.0%7.0% 6.75% Required employer contribution rates 29.693%29.693% 12.816% Safety Fire Plan Tier 1*Tier 2 PEPRA Hire date Prior to April 22, 2011 New Member on or after April 22, 2011 but prior to January 1, 2013 New Member on or after January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50 Monthly benefits, as a % of eligible compensation 3.00%2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.0%9.0% 12.25% Required employer contribution rates 33.691%33.691% 24.069% Safety Police Plan Tier 1*Tier 2 PEPRA Hire date Prior to April 22, 2011 New Member on or after April 22, 2011 but prior to January 1, 2013 New Member on or after January 1, 2013 Benefit formula 3% @ 50 3% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50 Monthly benefits, as a % of eligible compensation 3.00%2.4% to 3.0% 2.0% to 2.7% Required employee contribution rates 9.0%9.0% 12.25% Required employer contribution rates 33.691%33.691% 24.069% *Closed to new entrants 2018-01-09 Agenda Packet Page146 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans (Continued) Employees Covered At June 30, 2017, the following employees were covered by the benefit terms of the plans: Miscellaneous Plan Inactive employees or beneficiaries currently receiving benefits 708 Inactive employees entitled to but not yet receiving benefits 632 Active employees 605 Total 1,945 Safety Plan Inactive employees or beneficiaries currently receiving benefits 319 Inactive employees entitled to but not yet receiving benefits 113 Active employees 322 Total 754 Contribution Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. $10,214,768 and $13,859,572 of contributions for the Miscellaneous and Safety Plan respectively, were recognized as a reduction to the net pension liability for fiscal year ending June 30, 2017. Net Pension Liability The City’s net pension liability for each Plan is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of the Plans is measured as of June 30, 2016, using an annual actuarial valuation as of June 30, 2015 rolled forward to June 30, 2016 using standard update procedures. A summary of principal assumptions and methods used to determine the net pension liability is shown below. 2018-01-09 Agenda Packet Page147 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans (Continued) Net Pension Liability (Continued) The total pension liabilities in the June 30, 2015 actuarial valuations were determined using the following actuarial assumptions: Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB Statement No. 68 Discount Rate 7.65% Inflation 2.75% Salary Increases Varies by Entry Age and Service Mortality Rate Table (1) Derived using CalPERS’ Membership Data for all Funds Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter Actuarial Assumptions (1) The mortality table used was developed based on CalPERS’ specific data. The table includes 20 years of mortality improvements using Society of Actuaries Scale BB. For more details on this table, please refer to the 2014 experience study report. All other actuarial assumptions used in the June 30, 2015 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. Change of Assumptions There were no changes of assumptions. Discount Rate The discount rate used to measure the total pension liability was 7.65 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.65 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.65 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section. 2018-01-09 Agenda Packet Page148 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans (Continued) Discount Rate (Continued) The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2015. Asset Class New Strategic Allocation Real Return Years 1 - 10 (1) Real Return Years 11+ (2) Global Equity 51.00% 5.25% 5.71% Global Fixed Income 20.00 0.99 2.43 Inflation Sensitive 6.00 0.45 3.36 Private Equity 10.00 6.83 6.95 Real Estate 10.00 4.50 5.13 Infrastructure and Forestland 2.00 4.50 5.09 Liquidity 1.00 (0.55) (1.05) (1) An expected inflation of 2.5% used for this period (2) An expected inflation of 3.0% used for this period 2018-01-09 Agenda Packet Page149 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans (Continued) Changes in the Net Pension Liability The following table shows the changes in net pension liability recognized over the measurement period. Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance at: 6/30/2015 (Valuation Date)474,412,350$ 327,365,459$ 147,046,891$ Changes Recognized for the Measurement Period: Service Cost 8,451,918 - 8,451,918 Interest on the Total Pension Liability 35,618,575 - 35,618,575 Difference between Expected and Actual Experience (2,524,995) - (2,524,995) Changes of Assumptions - - - Plan to Plan Resource Movement - - - Contribution from the Employer - 12,461,946 (12,461,946) Contributions from Employees - 3,764,641 (3,764,641) Net Investment Income - 1,747,676 (1,747,676) Benefit Payments including Refunds of Employee Contributions (21,022,078) (21,022,078) - Administrative Expense - (199,512) 199,512 Net Changes During 2015-16 20,523,420 (3,247,327) 23,770,747 Balance at: 6/30/2016 (Measurement Date)494,935,770$ 324,118,132$ 170,817,638$ Increase (Decrease) Miscelleaneous Plan Total Pension Liability (a) Plan Fiduciary Net Position (b) Net Pension Liability/(Assets) (c)=(a)-(b) Balance at: 6/30/2015 (Valuation Date) 417,807,186$ 319,795,324$ 98,011,862$ Changes Recognized for the Measurement Period: Service Cost 9,971,492 - 9,971,492 Interest on the Total Pension Liability 31,658,073 - 31,658,073 Difference between Expected and Actual Experience 768,421 - 768,421 Changes of Assumptions - - - Contribution from the Employer - 10,971,712 (10,971,712) Contributions from Employees - 3,420,273 (3,420,273) Net Investment Income - 1,664,170 (1,664,170) Benefit Payments including Refunds of Employee Contributions (19,460,670) (19,460,670) - Administrative Expense - (194,899) 194,899 Net Changes During 2015-16 22,937,316 (3,599,414) 26,536,730 Balance at: 6/30/2016 (Measurement Date)440,744,502$ 316,195,910$ 124,548,592$ Increase (Decrease) Safety Plan . 2018-01-09 Agenda Packet Page150 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans (Continued) Sensitivity of the Net Pension Liability to Changes in the Discount Rates The following presents the net pension liability of the Plans as of the measurement date, calculated using the discount rate of 7.65 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.65 percent) or 1 percentage-point higher (8.65 percent) than the current rate: Discount Rate - 1% (6.65%) Current Discount Rate (7.65%) Discount Rate +1% (8.65%) Miscellaneous Plan 237,410,364$ 170,817,638$ 115,785,876$ Safety Plan 187,306,891 124,548,592 73,319,002 TOTAL 424,717,255$ 295,366,230$ 189,104,878$ Pension Plan Fiduciary Net Position Detailed information about the plans’ fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information. Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2017, the City of Chula Vista incurred a pension expense of $14,641,403 and $15,269,370 for the Miscellaneous and Safety Plans, respectively. At June 30, 2017, the City of Chula Vista has deferred outflows and deferred inflows of resources related to pensions as follows: Deferred Outflows of Resources Deferred Inflows of Resources Miscellaneous Plan Pension contributions subsequent to measurement date 10,864,203$ -$ Difference between Expected and Actual Experience 264,560 1,553,843 Changes of Assumptions - 2,428,770 Net Difference between Projected and Actual Earnings on Pension Plan Investments 17,747,369 - Total 28,876,132$ 3,982,613$ Safety Plan Pension contributions subsequent to measurement date 14,965,975$ -$ Difference between Expected and Actual Experience 880,059 - Changes of Assumptions - 4,558,149 Net Difference between Projected and Actual Earnings on Pension Plan Investments 17,400,765 - Total 33,246,799$ 4,558,149$ Total All Plans 62,122,931$ 8,540,762$ 2018-01-09 Agenda Packet Page151 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 11 – Pension Plans (Continued) A. California Public Employees’ Retirement Plans (Continued) The $10,864,203 and $14,965,975 for the Miscellaneous and Safety Plan, respectively, reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2018. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows: Miscellaneous Plan Safety Plan Total Measurement Period ended June 30: 2017 (591,635)$ 1,101,164$ 509,529$ 2018 1,961,037 1,101,165 3,062,202 2019 8,063,194 6,864,846 14,928,040 2020 4,596,720 4,655,500 9,252,220 Deferred Outflows/(Inflows) of Resources B. Defined Contribution Pension Plan The City provides pension plan benefits for all of its part-time hourly 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 Public Agency Retirement Services (PARS). 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. The authority to establish or amend the plan’s provisions resides with City Council. For the year ended June 30, 2017, the City’s total hourly payroll (for eligible PARS members) and covered payroll was $2,677,770. The City made employer contributions of $100,416 (3.75% of current covered payroll), and employees contributed $100,416 (3.75% of current covered payroll). C. Deferred Compensation 457B Plan The City offers to its employees an optional deferred compensation plan created in accordance with Section 457 of the Internal Revenue Code. This plan is available to substantially all employees and allows participants to defer a portion of their current income until future years, up to a maximum of $18,000 (in whole dollars) per calendar year, so as to shelter such funds and earnings from state and federal taxation until withdrawal. The deferred compensation is not available to participants until termination, retirement, death, or unforeseeable emergency. This plan is administered through a thirdǦparty administrator. The City does not perform the investing function and has no fiduciary accountability for the plan. Thus, plan assets and any related liability to plan participants have been excluded from the City’s financial statements. At June 30, 2017, the balance in the plan was $87,015,596. 2018-01-09 Agenda Packet Page152 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 12 – Post Retirement Health Benefits Plan Description The City provides a Retiree Healthcare Plan, a single employer defined benefit plan, which allows eligible 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 CalPERS Retirement Plan. The City subsequently established a third tier for employee benefits – employees hired in this tier are not eligible for this benefit. 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 Tier 1 employees are eligible for retiree health benefits if they retire 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, 2017: Police Fire Miscellaneous Total Eligible active employee 135 97 388 620 Enrolled eligible retirees 37 16 184 237 The information above does not reflect eligible retirees that are in the process of enrolling in the healthcare plan. 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. Tier 1 retirees pay 100% of their individual (subsidized) premium. Retirees under Tier 2 and Tier 3 will pay 100% of the unsubsidized (unblended) health care premiums. 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. 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: 2018-01-09 Agenda Packet Page153 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 12 – Post Retirement Health Benefits (Continued) Annual OPEB Cost and Net OPEB Obligation (Continued) 2017 2016 2015 Annual required contribution 2,100,893$ 2,039,000$ 1,920,000$ Interest on net OPEB obligation 331,030 337,000 295,000 Adjustment to the annual required contribution (831,892) (912,000) (767,000) Annual OPEB cost 1,600,031 1,464,000 1,448,000 Contribution made (496,440) (434,000) (389,000) Increase in net OPEB liability 1,103,591 1,030,000 1,059,000 Net OPEB liability, beginning of the year 9,458,000 8,428,000 7,369,000 Net OPEB liability, end of the year 10,561,591$ 9,458,000$ 8,428,000$ The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2015, 2016 and 2017 were as follows: Percentage of Net Annual Actual Annual OPEB OPEB Fiscal Year OPEB Cost Contributions Cost Contributed Obligation 2014-2015 1,448,000 389,000 27% 8,428,000 2015-2016 1,464,000 434,000 30% 9,458,000 2016-2017 1,600,031 496,440 31% 10,561,591 Funded Status and Funding Progress As of June 30, 2017, the most recent actuarial valuation date, the plan was not funded in its initial year of implementation. The actuarial accrued liability for benefits was $17,269,108, and the actuarial value of assets was $0, resulting in an unfunded actuarial liability (“UAAL”) of $17,269,108 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. 2018-01-09 Agenda Packet Page154 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 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 June 30, 2017 valuation used the entry age normal actuarial cost method. The actuarial assumptions included a 3.50% investment rate of return the four initial trend rates for medical cost are 7.00%, 6.50%, 6.005, and 5.50% to an ultimate rate of 3.94% after 56 years. Most Recent Actuarial Study – Schedule of Funding Progress Unfunded Actuarial Entry Age Unfunded Liability as Actuarial Actuarial Actuarial Actuarial Percentag e of Valuation Assets Accrued Accrued Funded Covered Covered Date Value Liability Liability Ratio Payroll Payroll 6/30/2017 -$ 17,269,108$ (17,269,108)$ 0.00% 50,776,906$ 34% 2018-01-09 Agenda Packet Page155 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 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: x The City is compelled to take pollution remediation action because of an imminent endangerment; x The City violates a pollution prevention-related permit or license; x 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; x The City is named, or evidence indicates that it will be named, in a lawsuit to compel participation in pollution remediation; x The City commences or legally obligates itself to commence pollution remediation. At June 30, 2016, the City identified the following sites which met one of the above obligating events: Corp Yard The estimate installation costs of groundwater monitoring wells and monitoring activity was 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 was subject to the test result or changes in applicable laws or regulations. The intent was to monitor for natural attenuation, however, the City believed that after another round of monitoring, the site will be closed. The City secured a pollution and remediation legal liability insurance to cover pollution and remediation legal liability, legal defense expense and contingent transportation coverage in the amount of $10,000,000 per occurrence up to $50,000,000 in aggregate liability with a self-insured retention amount of $100,000 per occurrence. As of June 30, 2017, the City was relieved of this pollution remediation obligation. 2018-01-09 Agenda Packet Page156 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 14 – Commitments and Contingencies Litigation The City is presently involved in certain matters of litigation that have risen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City. Additionally, City management believes that the City’s insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize. Grants The City participates in a number of federally assisted grant programs, including those from the U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Treasury, U.S. Department of Transportation, and the U.S. Department of Education. Receipts from these grant programs are subject to audit to determine if the monies were expended in accordance with appropriate statues, grant terms and regulations. The City believes no significant liabilities will result on this audit. Construction Commitments The following material construction commitments existed at June 30, 2017: Project Name Contract Amount Expenditures to date as of June 30, 2017 Remaining Commitments Storm Drain Rehabilitation 1,094,999$ $ 102,523 992,476$ Phase 2 Willow Street Bridge Replacement 15,186,666 2,144,978 13,041,688 Major Pavement Rehabilitation FY16/17 2,367,445 - 2,367,445 Encumbrances At June 30, 2017, there were encumbrances of $8,207,041 in the major funds, and $13,513,820 in the non-major funds. City Loan to Successor Agency The General Fund has loaned a cumulative amount of $9,885,147 including interest to the Successor Agency for unreimbursed services rendered by City staff. It is anticipated that the Agency will repay this loan from Redevelopment Property Tax Trust Fund distributions. Currently, Redevelopment Property Tax Trust Fund distributions are used to pay for related debt service expenditures and possible future debt issuance. As a result, the Successor Agency is uncertain if the amount will be repaid to the City’s General Fund. Accordingly, this contingent payable has not been reported in the accompanying basic financial statements. The Agency will record the contingent payable when payment is assured. 2018-01-09 Agenda Packet Page157 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 14 – Commitments and Contingencies (Continued) Successor Agency – Long Range Property Management Plan The City, acting as the Successor Agency to the Chula Vista Redevelopment Agency, prepared a Long Range Property Management Plan (LRPMP) in compliance with AB 1484. The Successor Agency Oversight Board reviewed and approved the LRPMP on May 12, 2014, and submitted it to the California Department of Finance for review on May 27, 2014. The Department of Finance approved the LRPMP in their July 15, 2014, determination letter. Note 15 – Classification of Fund Balances Sundry Grants Housing City Municipal Park Acquisition Other General Special Revenue Successor Agency Debt Service Public Financing Financing Development Development Governmental Fund Fund Fund Fund Authority Authority Impact Fund Fund Funds Total Nonspendable Prepaid items 44,248$ -$ -$ -$ -$ -$ -$ -$ -$ 44,248$ Due from Successor Agency of Chula Vista RDA 5,834,630 - - - - - - - - 5,834,630 Advances to other funds 1,489,995 - - - - - - 1,489,995 Total nonspendable 7,368,873 - - - - - - - - 7,368,873 Restricted Local law enforcement - 602,299 - - - - - - - 602,299 Asset forfeiture - 227,726 - - - - - - - 227,726 Library services - 23,916 - - - - - - - 23,916 HOME Program - 1,019,873 - - - - - - - 1,019,873 Energy conservation - (352,261) - - - - - - - (352,261) Cultural arts - 12,028 - - - - - - - 12,028 CDBG Home Programs - 560,088 - - - - - - - 560,088 Environmental services - 724,322 - - - - - - - 724,322 Waste management, recycling and environ. grants - 36,933 - - - - - - - 36,933 Community and housing development - 17,863 9,864,729 - - - - - 637,596 10,520,188 American Recovery and Reinvestment Act 2009 117,092 - - - - - - - 117,092 Public facilities - - - - - - 7,117,572 - - 7,117,572 Emergency shelter - 2,994 - - - - - - - 2,994 Transportation improvements - - - - - - 25,089,349 - 4,363,851 29,453,200 Telegraph Canyon drainage - - - - - - 4,113,574 - - 4,113,574 East Urban Cener millenia Ped Bridge DIF - - - - - - 4,509,259 - - 4,509,259 Park acquisitions and development - - - - - - - 43,016,921 - 43,016,921 Parking meter services - - - - - - - - 1,416,304 1,416,304 Public Educational & Govt. Fee - - - - - - - - 1,588,835 1,588,835 Traffic signal and safety - - - - - - - - 2,278,686 2,278,686 Storm drain - - - - - - - - 402,831 402,831 Open space maintenance - - - - - - - - 17,496,571 17,496,571 Telecom Utility Tax - - - - - - - - 262,221 262,221 Mobilehome Admin Fee - - - - - - - - 187,218 187,218 Assessment districts improvement - - - - - - - - 2,487,620 2,487,620 Town Center I - - - - - - - - 52,625 52,625 OR V2 Pub Benefit Contribution - - - - - - - - 210,842 210,842 Total restricted - 2,992,873 9,864,729 - - - 40,829,754 43,016,921 31,385,200 128,089,477 Committed Ecomonic contingency 3,600,000 - - - - - - - - 3,600,000 Capital projects 1,775,607 - - - - - - - - 1,775,607 San Diego Authority for Freeway Emergencies 557,993 - - - - - - - - 557,993 Legal Council 5,000 - - - - - - - - 5,000 Debt service - - - - 6,238,508 24,893 - - 345,095 6,608,496 Total committed 5,938,600 - - - 6,238,508 24,893 - - 345,095 12,547,096 Assigned Boards & Commissions - - - - - - - - - - City Clerk 75,000 - - - - - - - - 75,000 City Attorney 74,559 - - - - - - - - 74,559 City Administration 15,000 - - - - - - - - 15,000 Information Technology Services Department 94,670 - - - - - - - - 94,670 Human Resources 40,000 - - - - - - - - 40,000 Finance Department 28,700 - - - - - - - - 28,700 Non-Departmental 4,385,705 - - - - - - - - 4,385,705 Animal Care Services 7,035 - - - - - - - - 7,035 Community Development Department 207,035 - - - - - - - - 207,035 Police Department 204,177 - - - - - - - - 204,177 Fire Department 830,098 - - - - - - - - 830,098 Public Works Department 237,560 - - - - - - - - 237,560 Recreation Department 73,895 - - - - - - - - 73,895 Library 8,000 - - - - - - - - 8,000 Public liability 996,606 - - - - - - - - 996,606 Measure P Sales Tax 1,248,299 - - - - - - - - 1,248,299 Total assigned 8,526,339 - - - - - - - - 8,526,339 Unassigned 20,015,153 - - (18,966,412) - - - - (422,149) 626,592 Total fund balances 41,848,965$ 2,992,873$ 9,864,729$ (18,966,412)$ 6,238,508$ 24,893$ 40,829,754$ 43,016,921$ 31,308,146$ 157,158,377$ Major Funds 2018-01-09 Agenda Packet Page158 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED JUNE 30, 2017 Note 16 – Prior Period Adjustments The City recorded prior period adjustments of fund balances and net position during the current year due to the following: Transit Fund – In fiscal year 2015-16, the City accrued a receivable and revenue in the amount of $42,412 for funds that were never received. Fleet Management Fund – In fiscal year 2015-16, the City expensed costs in the amount of $90,483 that should have been capitalized. Successor Agency of the Former Chula Vista RDA – In fiscal year 2013-14, the Successor Agency sold two land parcels in exchange for cash. The land was not disposed of in the accounting records until fiscal year 2016-17 and the loss on disposal was never recorded, resulting in a restatement of $1,448,110. Governmental Activities – In fiscal year 2016-17, the City learned it was the rightful owner of several land parcels which were not previously recorded in its records. A land appraisal was performed, and for the land parcels with material appraised values, the City deflated these values using the S&P Case Shiller San Diego Home Price Index 1/1987 – 7/2017. The acquisition date used to determine the appropriate index was obtained based on all information available to the City. As a result net position of governmental activities was restated in the amount of $359,893,672. Note 17 – Subsequent Events In August 2016, the City entered into a capital lease agreement with JP Morgan Chase Bank, N.A. for the acquisition of one Pierce Fire Engine. The equipment has not yet been delivered as of June 30, 2017. The lease term is ten years and the lease amount is $1,229,470 to be paid in annual installments beginning in August 2017. In July 2017, the Chula Vista Municipal Financing Authority approved the issuance of the 2017 Lease Revenue Bonds. The bonds were issued to finance infrastructure, facilities and equipment and to pay the costs of the issuance of the bonds. In December 2017, the Chula Vista Municipal Financing Authority approved the issuance of the Lease Revenue Bonds Series 2017A and. The bonds were issued to finance photovoltaic energy systems at various City facilities, capitalize interest on the Bonds and pay costs incurred in connection with the issuance of the Bonds. 2018-01-09 Agenda Packet Page159 REQUIRED SUPPLEMENTARY INFORMATION 2018-01-09 Agenda Packet Page160        2018-01-09 Agenda Packet Page161 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT GENERAL FUND YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 37,392,657$ 37,392,657$ 37,392,657$ -$ Resources (Inflows): Taxes 108,557,059 111,757,059 113,405,092 1,648,033 Licenses and permits 1,321,085 1,321,085 1,266,885 (54,200) Intergovernmental 1,828,662 1,871,423 1,936,757 65,334 Charges for services 8,632,155 9,006,427 10,317,929 1,311,502 Use of money and property 2,731,601 2,731,862 2,607,245 (124,617) Fines and forfeitures 1,020,700 1,160,700 1,123,010 (37,690) Miscellaneous 10,700,717 18,947,063 19,616,239 669,176 Transfers in 12,457,171 15,385,567 10,166,928 (5,218,639) Capital leases 1,285,053 1,619,632 1,285,053 (334,579) Amounts Available for Appropriations 185,926,860 201,193,475 199,117,795 (2,075,680) Charges to Appropriation (Outflow): Current City council 1,567,718 1,553,069 1,431,869 121,200 City clerk 1,050,570 1,105,043 925,500 179,543 City attorney 2,975,762 3,039,784 2,823,503 216,281 Administration 2,023,495 2,076,854 2,050,141 26,713 Information technology 3,864,353 3,944,792 3,640,339 304,453 Human resources 3,623,061 7,407,297 6,835,947 571,350 Finance 3,644,748 3,615,605 3,439,434 176,171 Non-departmental 2,065,295 7,349,241 4,694,246 2,654,995 Board and commissions 10,179 19,179 14,662 4,517 Building and planning 2,671,459 2,655,012 2,310,753 344,259 Public safety Police 50,003,989 50,640,648 50,246,837 393,811 Fire 27,653,366 29,674,962 28,680,972 993,990 Community development Community Development 1,949,298 2,239,007 1,904,761 334,246 Parks and recreation Parks and recreation 4,298,513 4,454,128 4,243,609 210,519 Public works Public Works 28,849,452 31,378,497 30,693,625 684,872 Library Library 3,907,686 3,887,825 3,868,100 19,725 Capital outlay 1,828,501 4,806,439 2,438,848 2,367,591 Transfers out 7,012,810 12,067,052 7,025,684 5,041,368 Total Charges to Appropriations 149,000,255 171,914,434 157,268,830 14,645,604 Budgetary Fund Balance, June 30 36,926,605$ 29,279,041$ 41,848,965$ 12,569,924$ See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page162 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT SUNDRY GRANTS YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 4,308,918$ 4,308,918$ 4,308,918$ -$ Resources (Inflows): Intergovernmental 12,286,516 14,926,472 12,683,120 (2,243,352) Charges for services 1,262,279 1,262,279 1,191,788 (70,491) Use of money and property 99,000 99,000 103,625 4,625 Miscellaneous 326,769 335,974 676,290 340,316 Transfers in 198,347 282,982 213,356 (69,626) Amounts Available for Appropriations 18,481,829 21,215,625 19,177,097 (2,038,528) Charges to Appropriation (Outflow): Current Administration 142,400 147,400 242,270 (94,870) Non-departmental 1,488,522 4,259,501 1,411,106 2,848,395 Police 8,115,257 10,081,902 8,330,598 1,751,304 Parks and recreation 1,600 1,600 1,500 100 Public Works 3,883,224 4,008,516 2,665,151 1,343,365 Library 78,754 1,018,318 853,020 165,298 Capital outlay 870,802 1,892,805 1,791,255 101,550 Transfers out 904,130 942,730 889,324 53,406 Total Charges to Appropriations 15,484,689 22,352,772 16,184,224 6,168,548 Budgetary Fund Balance, June 30 2,997,140$ (1,137,147)$ 2,992,873$ 4,130,020$ See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page163 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE BY DEPARTMENT HOUSING SUCCESSOR AGENCY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 8,809,650$ 8,809,650$ 8,809,650$ -$ Resources (Inflows): Use of money and property 15,000 15,000 480,399 465,399 Miscellaneous - - 700,573 700,573 Transfers in 963,931 963,931 - (963,931) Amounts Available for Appropriations 9,788,581 9,788,581 9,990,622 202,041 Charges to Appropriation (Outflow): Current Housing 3,630,064 3,630,064 125,893 3,504,171 Total Charges to Appropriations 3,630,064 3,630,064 125,893 3,504,171 Budgetary Fund Balance, June 30 6,158,517$ 6,158,517$ 9,864,729$ 3,706,212$ See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page164 CITY OF CHULA VISTA MISCELLANEOUS PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 TOTAL PENSION LIABILITY Service Cost 8,696,183$ 8,570,421$ 8,451,918$ Interest 32,359,841 34,103,210 35,618,575 Difference Between expected and Actual Experience - 925,960 (2,524,995) Changes in Assumptions - (8,500,698) - Benefit Payments, Including Refunds of employee Contributions (18,639,387) (19,539,333) (21,022,078) Net Change in Total Pension Liability 22,416,637$ 15,559,560$ 20,523,420$ Total Pension Liability - Beginning 436,436,153 458,852,790 474,412,350 Total Pension Liability - Ending (a)458,852,790$ 474,412,350$ 494,935,770$ PLAN FIDUCIARY NET POSITION Contribution - Employer 9,134,182$ 13,499,144$ 12,461,946$ Contribution - Employee 4,555,300 3,679,749 3,764,641 Plan to Plan Resource Movement - 5,268 - Net Investment Income 48,303,496 7,195,063 1,747,676 Benefit Payments, Including Refunds of Employee Contributions (18,639,387) (19,539,333) (21,022,078) Administrative Expense - (368,694) (199,512) Net Change in Fiduciary Net Position 43,353,591$ 4,471,197$ (3,247,327)$ Plan Fiduciary Net Position - Beginning 279,540,671 322,894,262 327,365,459 Plan Fiduciary Net Position - Ending (b)322,894,262$ 327,365,459$ 324,118,132$ Plan Net Pension Liability/(Assets) - Ending (a) - (b)135,958,528$ 147,046,891$ 170,817,638$ 70.37%69.00%65.49% Covered-Employee Payroll 42,760,249$ 44,135,521$ 45,990,463$ 317.96%333.17%371.42% Notes to Schedule: Changes of Assumptions:In 2016,there were no changes.In 2015,amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of adminstrative expense) to 7.65 percent (without a reduction for pension plan adminstrative expense.) In 2014, amount reported were based on the 7.5 percent discount rate. Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered- Employee Payroll (1) Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015.This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page165 CITY OF CHULA VISTA MISCELLANEOUS PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 Actuarially Determined Contribution 9,637,382$ 10,214,678$ 10,864,203$ Contribution in Relation to the Actuarially Determined Contribution (9,637,382) (10,214,678) (10,864,203) Contribution Deficiency (Excess)-$ -$ -$ Covered-Employee Payroll 44,135,521$ 45,990,463$ 44,435,640$ Contributions as a Percentage of Covered-Employee Payroll 21.84%22.21%24.45% Note to Schedule: Valuation Date:June 30, 2014 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal cost method Amortization method/period Level percentage of payroll, closed Inflation 2.75% Salary Increases Payroll Growth Investment rate of return Retirement age Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. (1) Historical information is required only for measurement for which GASB 68 is applicable. FY 2014/15 was the first year of implementation, therefore only three years are shown. 3.30% to 14.20% 3.00% 7.65% net of pension investment and The probabilities of retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page166 CITY OF CHULA VISTA SAFETY PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) MEASUREMENT PERIOD 2015 2016 2017 TOTAL PENSION LIABILITY Service Cost 10,220,233$ 9,646,806$ 9,971,492$ Interest 28,334,465 29,979,452 31,658,073 Difference Between expected and Actual Experience - 460,215 37,817,316 Changes in Assumptions - (7,813,969) - Benefit Payments, Including Refunds of employee Contributions (15,869,862) (17,767,853) (19,460,670) Net Change in Total Pension Liability 22,684,836 14,504,651 59,986,211 Total Pension Liability - Beginning 380,617,699 403,302,535 417,807,186 Total Pension Liability - Ending (a)403,302,535$ 417,807,186$ 477,793,397$ PLAN FIDUCIARY NET POSITION Contribution - Employer 11,684,174$ 7,555,357$ 10,971,712$ Contribution - Employee 3,157,921 3,230,989 3,420,273 Net Investment Income 47,649,285 6,999,744 1,664,170 Benefit Payments, Including Refunds of Employee Contributions (15,869,862) (17,767,853) (19,460,670) Administrative Expense - (359,830) (194,899) Net Change in Fiduciary Net Position 46,621,518 (341,593) (3,599,414) Plan Fiduciary Net Position - Beginning 273,515,399 320,136,917 319,795,324 Plan Fiduciary Net Position - Ending (b)320,136,917$ 319,795,324$ 316,195,910$ Plan Net Pension Liability/(Assets) - Ending (a) - (b)83,165,618$ 98,011,862$ 161,597,487$ 79.38%76.54%66.18% Covered-Employee Payroll 34,243,101$ 34,117,846$ 37,174,663$ 242.87%287.27%434.70% Notes to Schedule: Changes of Assumptions:In 2016, there were no changes.In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of adminstrative expense)to 7.65 percent (without a reduction for pension plan adminstrative expense.) In 2014, amount reported were based on the 7.5 percent discount rate. Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered- Employee Payroll (1)Historical information is required only for measurement for which GASB 68 is applicable. Fiscal Year 2015 was the first year of implementation, therefore only three years are shown. Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2015. This applies to voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes). See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page167 CITY OF CHULA VISTA SAFETY PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1) 2015 2016 2017 Actuarially Determined Contribution 12,553,815$ 13,859,572$ 14,965,975$ Contribution in Relation to the Actuarially Determined Contribution (12,553,815) (13,859,572) (14,965,975) Contribution Deficiency (Excess)-$ -$ -$ Covered-Employee Payroll 34,117,846$ 37,174,663$ 37,817,316$ Contributions as a Percentage of Covered-Employee Payroll 36.80%37.28%39.57% Note to Schedule: Valuation Date:June 30, 2014 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal cost method Amortization method/period Level percentage of payroll, closed Inflation 2.75% Salary Increases Payroll Growth Investment rate of return Retirement age Mortality The probabilities of mortality are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. Pre-retirement and post-retirement mortality rates include 5 years of projected mortality improvement using Scale AA published by the Society of Actuaries. (1) Historical information is required only for measurement for which GASB 68 is applicable. FY 2014/15 was the first year of implementation, therefore only three years are shown. 3.30% to 14.20% 3.00% 7.65% net of pension investment and The probabilities of retirement are based on the 2010 CalPERS Experience Study for the period from 1997 to 2007. See Notes to Required Supplementary Information2018-01-09 Agenda Packet Page168 CITY OF CHULA VISTA REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF FUNDING PROGRESS YEAR ENDED JUNE 30, 2017 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 -$ 11,885,000$ (11,885,000)$ 0.00%69,087,000$ -17.20% 6/30/2011 - 13,617,000 (13,617,000) 0.00%73,651,000 -18.49% 6/30/2013 - 13,081,000 (13,081,000) 0.00%62,923,000 -20.79% 6/30/2014 - 12,877,000 (12,877,000) 0.00%58,224,000 -22.12% 6/30/2017 - 17,269,108 (17,269,108) 0.00%50,776,906 -34.01% Other Post Employment Benefits - Schedule of Funding Progress See Notes to Required Supplementary Information 2018-01-09 Agenda Packet Page169 CITY OF CHULA VISTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 30, 2017  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 expenditure function 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 $15,000 require City Council approval. Reported budget figures are as originally adopted or subsequently amended plus prior year continuing appropriations. Such budget amendments during the year, including those related to supplemental appropriations, did not cause these reported budget amounts to be significantly different than the originally adopted budget amounts. All appropriations which are not obligated, encumbered or expended at the end of the fiscal year lapse and become a part of the unreserved fund balance which may be appropriated for the next fiscal year. An annual budget for the year ended June 30, 2017, was adopted and approved by City Council for the general, special revenue, capital project and debt service funds except for the Developer Deposit and V2 Pub Benefit Contribution Special Revenue funds, and the Industrial Development Authority Capital Project fund. These budgets are prepared on the modified accrual basis of accounting. Expenditures for the year ended June 30, 2017, exceeded appropriations of the General and Major Special Revenue as follows: Expenditures Appropriations Excess Sundry Grants Fund: Administration 242,270$ 147,400$ (94,870)$ Fund 2018-01-09 Agenda Packet Page170        2018-01-09 Agenda Packet Page171 SUPPLEMENTARY INFORMATION 2018-01-09 Agenda Packet Page172 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments 1,987,691$ 1,469,234$ 162,159$ 2,085,566$ 370,203$ Receivables: Accounts -28,720 42,004 - 71,185 Taxes -- - - - Accrued interest -- - - - Deferred loans -- - - - Allowance for uncollectible deferred loans -- - - - Due from other governments -- - - - Total Assets 1,987,691$ 1,497,954$ 204,163$ 2,085,566$ 441,388$ Liabilities and Fund Balances: Liabilities: Accounts payable 62,652$ 81,650$ 2,431$ 8,612$ 38,557$ Accrued liabilities -- - - - Unearned revenues -- - - - Retentions payable 117,725 - - - - Due to other funds -- - - - Total Liabilities 180,377 81,650 2,431 8,612 38,557 Fund Balances: Restricted for: Community development projects 1,807,314 - - - - Public safety -1,416,304 201,732 2,076,954 - Parks and recreation -- - - - Capital Projects -- - - 402,831 Committed to: Debt service -- - - - Unassigned -- - - - Total Fund Balances 1,807,314 1,416,304 201,732 2,076,954 402,831 Total Liabilities and Fund Balances 1,987,691$ 1,497,954$ 204,163$ 2,085,566$ 441,388$ Special Revenue Funds Transportation Grants Parking Meter Traffic Safety Traffic Signal Storm Drain 2018-01-09 Agenda Packet Page173 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Deferred loans Allowance for uncollectible deferred loans Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Retentions payable Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Parks and recreation Capital Projects Committed to: Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (CONTINUED) 52,625$ 18,011,468$ 109,902$ 1,971,602$ - 1,026 472 30,135 - 62,735 - - - - 11,803 - - - 599,164 2,764,402 - - (99,217) (2,764,402) - - 15,472 - 52,625$ 18,075,229$ 637,596$ 2,001,737$ -$ 558,675$ -$ -$ - - - - - - - - - - - - - 19,983 - - - 578,658 - - - - 637,596 2,001,737 - - - - - - - - 52,625 17,496,571 - - - - - - - - - - 52,625 17,496,571 637,596 2,001,737 52,625$ 18,075,229$ 637,596$ 2,001,737$ Special Revenue Funds Town Center I Open Space Districts Housing Programs Housing Authority 2018-01-09 Agenda Packet Page174 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Deferred loans Allowance for uncollectible deferred loans Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Retentions payable Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Parks and recreation Capital Projects Committed to: Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 367,203$ 187,252$ 1,504,211$ 283,154$ 210,842$ - - - - - - - 105,743 - - - - - - - - - - - - - - - - - 83,073 - - - - 450,276$ 187,252$ 1,609,954$ 283,154$ 210,842$ 129,193$ 34$ 21,108$ 20,933$ -$ - - 11 - - 90,785 - - - - - - - - - - - - - - 219,978 34 21,119 20,933 - - - 1,588,835 - 210,842 - - - - - - 187,218 - - - 230,298 - - 262,221 - - - - - - - - - - - 230,298 187,218 1,588,835 262,221 210,842 450,276$ 187,252$ 1,609,954$ 283,154$ 210,842$ V2 Pub Benefit Contribution Special Revenue Funds Public Education and Govt Fee Utility Tax Settlement Transportation Sales Tax Mobile Park Fee 2018-01-09 Agenda Packet Page175 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Deferred loans Allowance for uncollectible deferred loans Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Retentions payable Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Parks and recreation Capital Projects Committed to: Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances (CONTINUED) 323,552$ 850$ -$ 52$ 2,487,620$ - - 29,376 - - - - - - - - - - - - - - - - - - - - - - - - - - - 323,552$ 850$ 29,376$ 52$ 2,487,620$ -$ -$ -$ -$ -$ - - - - - - - - - - - - - - - - - 33,836 - - - - 33,836 - - - - - - - - 850 - - - - - - - - 323,552 - - 52 2,487,620 - - - - - - - (4,460) - - 323,552 850 (4,460) 52 2,487,620 323,552$ 850$ 29,376$ 52$ 2,487,620$ Capital Projects Funds Residential Construction Tax Industrial Development Authority Assessment District Improvement Highway Safety Bicycle Facility 2018-01-09 Agenda Packet Page176 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Deferred loans Allowance for uncollectible deferred loans Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Retentions payable Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Parks and recreation Capital Projects Committed to: Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances 48$ -$ -$ 257,656$ 93,420$ - 26,992 - - 19,289 - - - - - - - - - - - - - - - - - - - - - 2,838,018 - - - 48$ 2,865,010$ -$ 257,656$ 112,709$ -$ 263,821$ -$ -$ -$ - - - - - -34,511 - - - - - - - - - 2,738,446 245,921 25,270 - - 3,036,778 245,921 25,270 - - - - - - 48 - - - - - - - - - - - - - - - - - 232,386 112,709 - (171,768) (245,921) - - 48 (171,768) (245,921) 232,386 112,709 48$ 2,865,010$ -$ 257,656$ 112,709$ Debt Service FundsCapital Projects Funds Transportation Partnership Fund Other Transportation Program Fund Capital Projects Fund Lease Payable Notes Payable 2018-01-09 Agenda Packet Page177 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 30, 2017 Assets: Pooled cash and investments Receivables: Accounts Taxes Accrued interest Deferred loans Allowance for uncollectible deferred loans Due from other governments Total Assets Liabilities and Fund Balances: Liabilities: Accounts payable Accrued liabilities Unearned revenues Retentions payable Due to other funds Total Liabilities Fund Balances: Restricted for: Community development projects Public safety Parks and recreation Capital Projects Committed to: Debt service Unassigned Total Fund Balances Total Liabilities and Fund Balances Total Governmental Funds 31,936,310$ 249,199 168,478 11,803 3,363,566 (2,863,619) 2,936,563 35,802,300$ 1,187,666$ 11 125,296 117,725 3,063,456 4,494,154 6,246,324 3,695,888 187,218 21,255,770 345,095 (422,149) 31,308,146 35,802,300$ 2018-01-09 Agenda Packet Page178 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes -$ -$ -$ -$ -$ Licenses and permits - 24,083 - - - Intergovernmental 5,073,513 - - - - Charges for services - - - 183,663 621,526 Use of money and property 8,297 326,965 457 6,542 1,191 Fines and forfeitures - 194,376 483,114 - 5,008 Miscellaneous - - - - - Total Revenues 5,081,810 545,424 483,571 190,205 627,725 Expenditures: Current: General government 963,084 - - - - Public safety - 448,433 24,296 - - Parks and recreation - - - - - Public works - - - 4,100 236,661 Capital outlay 822,845 37,601 - 137,554 - Debt service: Principal retirement - - - - - Interest and fiscal charges - - - - - Total Expenditures 1,785,929 486,034 24,296 141,654 236,661 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,295,881 59,390 459,275 48,551 391,064 Other Financing Sources (Uses): Transfers in - - - 4,024 - Transfers out (4,265,447) - (399,140) - (210,000) Total Other Financing Sources (Uses)(4,265,447) - (399,140) 4,024 (210,000) Net Change in Fund Balances (969,566) 59,390 60,135 52,575 181,064 Fund Balances, Beginning of Year 2,776,880 1,356,914 141,597 2,024,379 221,767 Fund Balances, End of Year 1,807,314$ 1,416,304$ 201,732$ 2,076,954$ 402,831$ Special Revenue Funds Transportation Grants Parking Meter Traffic Safety Traffic Signal Storm Drain 2018-01-09 Agenda Packet Page179 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) -$ -$ -$ -$ - - - - - - 26,351 - - 13,423,106 - 924,082 181 48,920 - 19,380 - - - - - - 29,365 1,155,514 181 13,472,026 55,716 2,098,976 - - 29,569 632,797 - - - - - - - - - 10,514,298 - - - 175,739 - - - - - - - - - - - 10,690,037 29,569 632,797 181 2,781,989 26,147 1,466,179 - - - - - - - (254,697) - - - (254,697) 181 2,781,989 26,147 1,211,482 52,444 14,714,582 611,449 790,255 52,625$ 17,496,571$ 637,596$ 2,001,737$ Open Space Districts Housing Programs Housing Authority Special Revenue Funds Town Center I 2018-01-09 Agenda Packet Page180 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year 7,643,598$ -$ -$ -$ -$ - - - - - 341,822 - - - - - - - - - - 710 4,351 2,512 208 - - - - - 53,378 67,410 599,685 - 210,634 8,038,798 68,120 604,036 2,512 210,842 - 50,707 226,811 520,174 - - - - - - - - - - - 612,459 - - - - 6,757,162 - 60,109 59,777 - - - - - - - - - - - 7,369,621 50,707 286,920 579,951 - 669,177 17,413 317,116 (577,439) 210,842 44,922 - - - - - - - (66,935) - 44,922 - - (66,935) - 714,099 17,413 317,116 (644,374) 210,842 (483,801) 169,805 1,271,719 906,595 - 230,298$ 187,218$ 1,588,835$ 262,221$ 210,842$ Special Revenue Funds Mobile Park Fee Public Education and Govt Fee Utility Tax Settlement Transportation Sales Tax V2 Pub Benefit Contribution 2018-01-09 Agenda Packet Page181 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year (CONTINUED) 413,914$ -$ -$ -$ -$ - - - - - - - 74,372 - - - - - - - - 73 - 1 7,579 - - - - - - - - - 9,429 413,914 73 74,372 1 17,008 - - 78,832 - - - - - - - - - - - 1,496 - - - - - - 46,050 - - 47,040 - - - - - - - - - - - 46,050 78,832 - 48,536 413,914 (45,977) (4,460) 1 (31,528) 343,910 - - - 24,864 (662,149) - - - (60,127) (318,239) - - - (35,263) 95,675 (45,977) (4,460) 1 (66,791) 227,877 46,827 - 51 2,554,411 323,552$ 850$ (4,460)$ 52$ 2,487,620$ Capital Projects Funds Residential Construction Tax Highway Safety Bicycle Facility Industrial Development Authority Assessment District Improvement 2018-01-09 Agenda Packet Page182 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year -$ -$ -$ -$ -$ - - - - - - 3,291,525 - - - - - - - - 49 - - 1,227 637 - - - - - - - - 364,842 45,168 49 3,291,525 - 366,069 45,805 - - - - - - - - - - - - - - - 29,755 - 17,568 - - - 3,445,720 313,594 - - - - - 943,182 466,873 - - - 476,969 132,612 29,755 3,445,720 331,162 1,420,151 599,485 (29,706) (154,195) (331,162) (1,054,082) (553,680) - - 15,594 1,291,859 518,162 - (21,600) - - - - (21,600) 15,594 1,291,859 518,162 (29,706) (175,795) (315,568) 237,777 (35,518) 29,754 4,027 69,647 (5,391) 148,227 48$ (171,768)$ (245,921)$ 232,386$ 112,709$ Capital Projects Funds Transportation Partnership Fund Lease Payable Notes Payable Other Transportation Program Fund Capital Projects Fund Debt Service Funds 2018-01-09 Agenda Packet Page183 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2017 Revenues: Taxes Licenses and permits Intergovernmental Charges for services Use of money and property Fines and forfeitures Miscellaneous Total Revenues Expenditures: Current: General government Public safety Parks and recreation Public works Capital outlay Debt service: Principal retirement Interest and fiscal charges Total Expenditures Excess (Deficiency) of Revenues Over (Under) Expenditures Other Financing Sources (Uses): Transfers in Transfers out Total Other Financing Sources (Uses) Net Change in Fund Balances Fund Balances, Beginning of Year Fund Balances, End of Year Total Governmental Funds 8,057,512$ 24,083 8,807,583 15,152,377 429,280 682,498 2,535,425 35,688,758 2,501,974 472,729 1,496 11,414,841 11,903,191 1,410,055 609,581 28,313,867 7,374,891 2,243,335 (5,940,095) (3,696,760) 3,678,131 27,630,015 31,308,146$ 2018-01-09 Agenda Packet Page184 CITY OF CHULA VISTABUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORYGENERAL FUNDYEAR ENDED JUNE 30, 2017Variance withFinal BudgetPersonnel Supplies andOther Operating TransfersActualFinalPositiveServicesServices Utilities Expenses CapitalOutAmountsBudget(Negative)Current:City council1,382,563$ 34,356$ 14,950$ -$ -$ -$ 1,431,869$ 1,553,069$ 121,200$ City clerk753,811171,245 444- - - 925,500 1,105,043 179,543 City attorney2,398,889 423,130 1,484- - - 2,823,503 3,039,784 216,281 Administration1,876,095 173,386 660- - - 2,050,141 2,076,854 26,713 Information technology2,381,315 1,256,109 2,915- - - 3,640,339 3,944,792 304,453 Human resources2,112,370 1,570,411 1,7313,151,435 - - 6,835,947 7,407,297 571,350 Finance3,190,284 246,472 1,6521,026- - 3,439,434 3,615,605 176,171 Non-departmental365,2263,425,157 1,038137,116 765,709 - 4,694,246 7,349,241 2,654,995 Board and commissions- 14,662- - - - 14,662 19,179 4,517 Building and planning2,187,792 121,181 1,76515- - 2,310,753 2,655,012 344,259 Police46,377,400 3,256,353 498,220 114,864 - - 50,246,837 50,640,648 393,811 Fire25,821,518 2,658,873 200,581 - - - 28,680,972 29,674,962 993,990 Community development 1,713,734 188,942 646- 1,439- 1,904,761 2,239,007 334,246 Parks and recreation3,116,415 598,543 357,471 171,180 - - 4,243,609 4,454,128 210,519 Public works20,443,995 5,843,932 3,956,478 449,220 - - 30,693,625 31,378,497 684,872 Library3,364,397 213,462 289,691 550- - 3,868,100 3,887,825 19,725 Capital outlay- - - - 2,438,848 - 2,438,848 4,806,439 2,367,591 Transfers out- - - - - 7,025,684 7,025,684 12,067,052 5,041,368 Total Expenditures 117,485,804$ 20,196,214$ 5,329,726$ 4,025,406$ 3,205,996$ 7,025,684$ 157,268,830$ 171,914,434$ 14,645,604$ 2018-01-09 Agenda Packet Page185 CITY OF CHULA VISTABUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORYSUNDRY GRANTSYEAR ENDED JUNE 30, 2017Variance withFinal BudgetPersonnel Supplies andOther Operating Transfers ActualFinalPositiveServicesServices Utilities Expenses CapitalOutAmountsBudget(Negative)Current:Administration-$ 242,270$ -$ -$ -$ -$ 242,270$ 147,400$ (94,870)$ Non-departmental 46,956 20,484 1,102 497,997 844,567 - 1,411,106 4,259,501 2,848,395 Police 6,241,976 1,776,267 - 267,291 45,064 - 8,330,598 10,081,902 1,751,304 Parks and recreation - - - 1,500 - - 1,500 1,600 100 Public works741,904 1,052,652 7,858 858,860 3,877 - 2,665,151 4,008,516 1,343,365 Library 37,093 27,427 - - 788,500 - 853,020 1,018,318 165,298 Capital outlay- - - - 1,791,255 - 1,791,255 1,892,805 101,550 Transfers out- - - - - 889,324 889,324 942,730 53,406 Total Expenditures7,067,929$ 3,119,100$ 8,960$ 1,625,648$ 3,473,263$ 889,324$ 16,184,224$ 22,352,772$ 6,168,548$ 2018-01-09 Agenda Packet Page186 CITY OF CHULA VISTABUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORYHOUSING SUCCESSOR AGENCYYEAR ENDED JUNE 30, 2017Variance withFinal BudgetPersonnel Supplies and Loans to Other Operating Transfers ActualFinalPositiveServicesServices Outside Entities Expenses CapitalOutAmountsBudget(Negative)Current:Housing117,009$ 4,737$ -$ 1,447$ 2,700$ -$ 125,893$ 3,630,064$ 3,504,171$ Total Expenditures117,009$ 4,737$ -$ 1,447$ 2,700$ -$ 125,893$ 3,630,064$ 3,504,171$ 2018-01-09 Agenda Packet Page187 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRANSPORTATION GRANTS YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 5,258,582$ 5,258,582$ 5,073,513$ (185,069)$ Use of money and property - - 8,297 8,297 Total Revenues 5,258,582 5,258,582 5,081,810 (176,772) Expenditures: Current: General government - 78,081 963,084 (885,003) Capital outlay 1,300,000 2,435,930 822,845 1,613,085 Total Expenditures 1,300,000 2,514,011 1,785,929 728,082 Excess (Deficiency) of Revenues Over (Under) Expenditures 3,958,582 2,744,571 3,295,881 551,310 Other Financing Sources (Uses): Transfers out (4,259,428) (4,265,447) (4,265,447) - Total Other Financing Sources (Uses)(4,259,428) (4,265,447) (4,265,447) - Net Change in Fund Balances (300,846) (1,520,876) (969,566) 551,310 Fund Balances, Beginning of Year 2,776,880 2,776,880 2,776,880 - Fund Balances, End of Year 2,476,034$ 1,256,004$ 1,807,314$ 551,310$ 2018-01-09 Agenda Packet Page188 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PARKING METER YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits 35,000$ 35,000$ 24,083$ (10,917)$ Use of money and property 350,000 350,000 326,965 (23,035) Fines and forfeitures 200,000 200,000 194,376 (5,624) Total Revenues 585,000 585,000 545,424 (39,576) Expenditures: Current: Public safety 441,248 491,248 448,433 42,815 Capital outlay - 137,122 37,601 99,521 Total Expenditures 441,248 628,370 486,034 142,336 Excess (Deficiency) of Revenues Over (Under) Expenditures 143,752 (43,370) 59,390 102,760 Net Change in Fund Balances 143,752 (43,370) 59,390 102,760 Fund Balances, Beginning of Year 1,356,914 1,356,914 1,356,914 - Fund Balances, End of Year 1,500,666$ 1,313,544$ 1,416,304$ 102,760$ 2018-01-09 Agenda Packet Page189 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC SAFETY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 457$ 457$ Fines and forfeitures 437,640 437,640 483,114 45,474 Total Revenues 437,640 437,640 483,571 45,931 Expenditures: Current: Public safety 38,500 38,500 24,296 14,204 Total Expenditures 38,500 38,500 24,296 14,204 Excess (Deficiency) of Revenues Over (Under) Expenditures 399,140 399,140 459,275 60,135 Other Financing Sources (Uses): Transfers out (399,140) (399,140) (399,140) - Total Other Financing Sources (Uses)(399,140) (399,140) (399,140) - Net Change in Fund Balances - - 60,135 60,135 Fund Balances, Beginning of Year 141,597 141,597 141,597 - Fund Balances, End of Year 141,597$ 141,597$ 201,732$ 60,135$ 2018-01-09 Agenda Packet Page190 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRAFFIC SIGNAL YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 200,000$ 200,000$ 183,663$ (16,337)$ Use of money and property - - 6,542 6,542 Total Revenues 200,000 200,000 190,205 (9,795) Expenditures: Current: Public works 15,000 15,000 4,100 10,900 Capital outlay 495,010 1,146,667 137,554 1,009,113 Total Expenditures 510,010 1,161,667 141,654 1,020,013 Excess (Deficiency) of Revenues Over (Under) Expenditures (310,010) (961,667) 48,551 1,010,218 Net Change in Fund Balances (310,010) (957,642) 52,575 1,010,217 Fund Balances, Beginning of Year 2,024,379 2,024,379 2,024,379 - Fund Balances, End of Year 1,714,369$ 1,066,737$ 2,076,954$ 1,010,217$ 2018-01-09 Agenda Packet Page191 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL STORM DRAIN YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits 23,750$ 23,750$ -$ (23,750)$ Charges for services 555,500 555,500 621,526 66,026 Use of money and property - - 1,191 1,191 Fines and forfeitures 5,000 5,000 5,008 8 Total Revenues 584,250 584,250 627,725 43,475 Expenditures: Current: General government - - - - Public works 348,900 348,920 236,661 112,259 Total Expenditures 348,900 348,920 236,661 112,259 Excess (Deficiency) of Revenues Over (Under) Expenditures 235,350 235,330 391,064 155,734 Other Financing Sources (Uses): Transfers out (210,000) (210,000) (210,000) - Total Other Financing Sources (Uses)(210,000) (210,000) (210,000) - Net Change in Fund Balances 25,350 25,330 181,064 155,734 Fund Balances, Beginning of Year 221,767 221,767 221,767 - Fund Balances, End of Year 247,117$ 247,097$ 402,831$ 155,734$ 2018-01-09 Agenda Packet Page192 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TOWN CENTER I YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 181$ 181$ Total Revenues - - 181 181 Expenditures: Capital outlay - 10,120 - 10,120 Total Expenditures - 10,120 - 10,120 Excess (Deficiency) of Revenues Over (Under) Expenditures - (10,120) 181 10,301 Net Change in Fund Balances - (10,120) 181 10,301 Fund Balances, Beginning of Year 52,444 52,444 52,444 - Fund Balances, End of Year 52,444$ 42,324$ 52,625$ 10,301$ 2018-01-09 Agenda Packet Page193 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OPEN SPACE DISTRICTS YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services 11,994,382$ 11,995,902$ 13,423,106$ 1,427,204$ Use of money and property - - 48,920 48,920 Total Revenues 11,994,382 11,995,902 13,472,026 1,476,124 Expenditures: Current: Public works 12,000,385 12,014,871 10,514,298 1,500,573 Capital outlay - 176,383 175,739 644 Total Expenditures 12,000,385 12,191,254 10,690,037 1,501,217 Excess (Deficiency) of Revenues Over (Under) Expenditures (6,003) (195,352) 2,781,989 2,977,341 Net Change in Fund Balances (6,003) (195,352) 2,781,989 2,977,341 Fund Balances, Beginning of Year 14,714,582 14,714,582 14,714,582 - Fund Balances, End of Year 14,708,579$ 14,519,230$ 17,496,571$ 2,977,341$ 2018-01-09 Agenda Packet Page194 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HOUSING PROGRAMS YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 328,574$ 328,574$ 26,351$ (302,223)$ Other revenues - - 29,365 29,365 Total Revenues 328,574 328,574 55,716 (272,858) Expenditures: Current: General government 328,574 526,719 29,569 497,150 Total Expenditures 328,574 526,719 29,569 497,150 Excess (Deficiency) of Revenues Over (Under) Expenditures - (198,145) 26,147 224,292 Net Change in Fund Balances - (198,145) 26,147 224,292 Fund Balances, Beginning of Year 611,449 611,449 611,449 - Fund Balances, End of Year 611,449$ 413,304$ 637,596$ 224,292$ 2018-01-09 Agenda Packet Page195 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HOUSING AUTHORITY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services -$ -$ 924,082$ 924,082$ Use of money and property - - 19,380 19,380 Other revenues 974,671 974,671 1,155,514 180,843 Total Revenues 974,671 974,671 2,098,976 1,124,305 Expenditures: Current: General government 719,974 722,372 632,797 89,575 Total Expenditures 719,974 722,372 632,797 89,575 Excess (Deficiency) of Revenues Over (Under) Expenditures 254,697 252,299 1,466,179 1,213,880 Other Financing Sources (Uses): Transfers out (254,697) (254,697) (254,697) - Total Other Financing Sources (Uses)(254,697) (254,697) (254,697) - Net Change in Fund Balances - (2,398) 1,211,482 1,213,880 Fund Balances, Beginning of Year 790,255 790,255 790,255 - Fund Balances, End of Year 790,255$ 787,857$ 2,001,737$ 1,213,880$ 2018-01-09 Agenda Packet Page196 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRANSPORTATION SALES TAX YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes 8,239,131$ 8,239,131$ 7,643,598$ (595,533)$ Intergovernmental 47,969 189,434 341,822 152,388 Use of money and property - - - - Other revenues - - 53,378 53,378 Total Revenues 8,287,100 8,428,565 8,038,798 (389,767) Expenditures: Current: Public works - - 612,459 (612,459) Capital outlay 8,072,131 16,154,163 6,757,162 9,397,001 Total Expenditures 8,072,131 16,154,163 7,369,621 8,784,542 Excess (Deficiency) of Revenues Over (Under) Expenditures 214,969 (7,725,598) 669,177 8,394,775 Other Financing Sources (Uses): Transfers in - 48,155 44,922 (3,233) Total Other Financing Sources (Uses)- 48,155 44,922 (3,233) Net Change in Fund Balances 214,969 (7,677,443) 714,099 8,391,542 Fund Balances, Beginning of Year (483,801) (483,801) (483,801) - Fund Balances, End of Year (268,832)$ (8,161,244)$ 230,298$ 8,391,542$ 2018-01-09 Agenda Packet Page197 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MOBILE PARK FEE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 710$ 710$ Other revenues 65,000 65,000 67,410 2,410 Total Revenues 65,000 65,000 68,120 3,120 Expenditures: Current: General government 91,000 91,000 50,707 40,293 Total Expenditures 91,000 91,000 50,707 40,293 Excess (Deficiency) of Revenues Over (Under) Expenditures (26,000) (26,000) 17,413 43,413 Net Change in Fund Balances (26,000) (26,000) 17,413 43,413 Fund Balances, Beginning of Year 169,805 169,805 169,805 - Fund Balances, End of Year 143,805$ 143,805$ 187,218$ 43,413$ 2018-01-09 Agenda Packet Page198 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PUBLIC EDUCATION AND GOVT FEE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 4,351$ 4,351$ Other revenues 600,000 600,000 599,685 (315) Total Revenues 600,000 600,000 604,036 4,036 Expenditures: Current: General government 300,000 340,565 226,811 113,754 Capital outlay 300,000 363,562 60,109 303,453 Total Expenditures 600,000 704,127 286,920 417,207 Excess (Deficiency) of Revenues Over (Under) Expenditures - (104,127) 317,116 421,243 Net Change in Fund Balances - (104,127) 317,116 421,243 Fund Balances, Beginning of Year 1,271,719 1,271,719 1,271,719 - Fund Balances, End of Year 1,271,719$ 1,167,592$ 1,588,835$ 421,243$ 2018-01-09 Agenda Packet Page199 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL UTILITY TAX SETTLEMENT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 2,512$ 2,512$ Total Revenues - - 2,512 2,512 Expenditures: Current: General government 473,826 713,449 520,174 193,275 Capital outlay - 59,832 59,777 55 Total Expenditures 473,826 773,281 579,951 193,330 Excess (Deficiency) of Revenues Over (Under) Expenditures (473,826) (773,281) (577,439) 195,842 Other Financing Sources (Uses): Transfers out - (66,935) (66,935) - Total Other Financing Sources (Uses)- (66,935) (66,935) - Net Change in Fund Balances (473,826) (840,216) (644,374) 195,842 Fund Balances, Beginning of Year 906,595 906,595 906,595 - Fund Balances, End of Year 432,769$ 66,379$ 262,221$ 195,842$ 2018-01-09 Agenda Packet Page200 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL V2 PUB BENEFIT CONTRIBUTION YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 208$ 208$ Other revenues - - 210,634 210,634 Total Revenues - - 210,842 210,842 Excess (Deficiency) of Revenues Over (Under) Expenditures - - 210,842 210,842 Net Change in Fund Balances - - 210,842 210,842 Fund Balances, End of Year -$ -$ 210,842$ 210,842$ 2018-01-09 Agenda Packet Page201 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PARK ACQUISITION DEVELOPMENT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 111,961$ 111,961$ Developer participation 700,000 700,000 470,567 (229,433) Total Revenues 700,000 700,000 582,528 (117,472) Expenditures: Current: General government 100,000 4,138,781 885,959 3,252,822 Capital outlay - 700,417 31,714 668,703 Total Expenditures 100,000 4,839,198 917,673 3,921,525 Excess (Deficiency) of Revenues Over (Under) Expenditures 600,000 (4,139,198) (335,145) 3,804,053 Other Financing Sources (Uses): Transfers in 450,000 450,000 10,782 (439,218) Transfers out (450,000) (450,000) (80,000) 370,000 Net Change in Fund Balances 600,000 (4,139,198) (404,363) 3,734,835 Fund Balances, Beginning of Year 43,421,284 43,421,284 43,421,284 - Fund Balances, End of Year 44,021,284$ 39,282,086$ 43,016,921$ 3,734,835$ 2018-01-09 Agenda Packet Page202 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL RESIDENTIAL CONSTRUCTION TAX YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes 325,505$ 325,505$ 413,914$ 88,409$ Total Revenues 325,505 325,505 413,914 88,409 Excess (Deficiency) of Revenues Over (Under) Expenditures 325,505 325,505 413,914 88,409 Other Financing Sources (Uses): Transfers in 340,910 343,910 343,910 - Transfers out (666,415) (666,415) (662,149) 4,266 Total Other Financing Sources (Uses)(325,505) (322,505) (318,239) 4,266 Net Change in Fund Balances - 3,000 95,675 92,675 Fund Balances, Beginning of Year 227,877 227,877 227,877 - Fund Balances, End of Year 227,877$ 230,877$ 323,552$ 92,675$ 2018-01-09 Agenda Packet Page203 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL HIGHWAY SAFETY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 73$ 73$ Total Revenues - - 73 73 Expenditures: Capital outlay - 46,050 46,050 - Total Expenditures - 46,050 46,050 - Excess (Deficiency) of Revenues Over (Under) Expenditures - (46,050) (45,977) 73 Net Change in Fund Balances - (46,050) (45,977) 73 Fund Balances, Beginning of Year 46,827 46,827 46,827 - Fund Balances, End of Year 46,827$ 777$ 850$ 73$ 2018-01-09 Agenda Packet Page204 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL BICYCLE FACILITY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 65,000$ 65,000$ 74,372$ 9,372$ Total Revenues 65,000 65,000 74,372 9,372 Expenditures: Current: General government 65,000 78,863 78,832 31 Total Expenditures 65,000 78,863 78,832 31 Excess (Deficiency) of Revenues Over (Under) Expenditures - (13,863) (4,460) 9,403 Net Change in Fund Balances - (13,863) (4,460) 9,403 Fund Balances, End of Year -$ (13,863)$ (4,460)$ 9,403$ 2018-01-09 Agenda Packet Page205 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL ASSESSMENT DISTRICT IMPROVEMENT YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 7,579$ 7,579$ Other revenues - - 9,429 9,429 Total Revenues - - 17,008 17,008 Expenditures: Current: Parks and recreation 2,500 2,500 1,496 1,004 Capital outlay - 47,040 47,040 - Total Expenditures 2,500 49,540 48,536 1,004 Excess (Deficiency) of Revenues Over (Under) Expenditures (2,500) (49,540) (31,528) 18,012 Other Financing Sources (Uses): Transfers in - 24,870 24,864 (6) Transfers out - (63,070) (60,127) 2,943 Total Other Financing Sources (Uses)- (38,200) (35,263) 2,937 Net Change in Fund Balances (2,500) (87,740) (66,791) 20,949 Fund Balances, Beginning of Year 2,554,411 2,554,411 2,554,411 - Fund Balances, End of Year 2,551,911$ 2,466,671$ 2,487,620$ 20,949$ 2018-01-09 Agenda Packet Page206 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL DEVELOPMENT IMPACT FUNDS YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 1$ 1$ Developer participation 4,551,600 4,551,600 8,339,611 3,788,011 Total Revenues 4,551,600 4,551,600 8,339,612 3,788,012 Expenditures: Current: Public works 855,300 856,800 361,973 494,827 Capital outlay 2,036,102 7,724,733 3,007,658 4,717,075 Total Expenditures 2,891,402 8,581,533 3,369,631 5,211,902 Excess (Deficiency) of Revenues Over (Under) Expenditures 1,660,198 (4,029,933) 4,969,981 8,999,914 Other Financing Sources (Uses): Transfers in 1,045,000 1,045,000 9,461 (1,035,539) Transfers out (7,719,591) (6,155,315) (5,078,179) 1,077,136 Total Other Financing Sources (Uses)(6,674,591) (5,110,315) (5,068,718) 41,597 Net Change in Fund Balances (5,014,393) (9,140,248) (98,737) 9,041,511 Fund Balances, Beginning of Year 40,928,491 40,928,491 40,928,491 - Fund Balances, End of Year 35,914,098$ 31,788,243$ 40,829,754$ 9,041,511$ 2018-01-09 Agenda Packet Page207 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL TRANSPORTATION PARTNERSHIP FUND YEAR ENDED JUNE 30, 2017 Budget Amounts Original Final Actual Amounts Variance with Final Budget Positive (Negative) Revenues: Use of money and property -$ -$ 49$ 49$ Total Revenues - - 49 49 Expenditures: Capital outlay - 29,755 - 29,755 Total Expenditures - 29,755 29,755 - Excess (Deficiency) of Revenues Over (Under) Expenditures - (29,755) (29,706) 49 Net Change in Fund Balances - (29,755) (29,706) 49 Fund Balances, Beginning of Year 29,754 29,754 29,754 - Fund Balances, End of Year 29,754$ (1)$ 48$ 49$ 2018-01-09 Agenda Packet Page208 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL OTHER TRANSPORTATION PROGRAM FUND YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental 6,637,647$ 6,637,647$ 3,291,525$ (3,346,122)$ Total Revenues 6,637,647 6,637,647 3,291,525 (3,346,122) Expenditures: Capital outlay 6,637,647 18,192,024 3,445,720 14,746,304 Total Expenditures 6,637,647 18,192,024 3,445,720 14,746,304 Excess (Deficiency) of Revenues Over (Under) Expenditures - (11,554,377) (154,195) 11,400,182 Other Financing Sources (Uses): Transfers out - (21,602) (21,600) 2 Total Other Financing Sources (Uses)- (21,602) (21,600) 2 Net Change in Fund Balances - (11,575,979) (175,795) 11,400,184 Fund Balances, Beginning of Year 4,027 4,027 4,027 - Fund Balances, End of Year 4,027$ (11,571,952)$ (171,768)$ 11,400,184$ 2018-01-09 Agenda Packet Page209 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Other revenues 87,609$ 213,488$ -$ (213,488)$ Total Revenues 87,609 213,488 - (213,488) Expenditures: Current: Public works - 17,568 17,568 - Capital outlay - 599,231 313,594 285,637 Total Expenditures - 616,799 331,162 285,637 Excess (Deficiency) of Revenues Over (Under) Expenditures 87,609 (403,311) (331,162) 72,149 Other Financing Sources (Uses): Transfers in - 15,594 15,594 - Total Other Financing Sources (Uses)- 15,594 15,594 - Net Change in Fund Balances 87,609 (387,717) (315,568) 72,149 Fund Balances, Beginning of Year 69,647 69,647 69,647 - Fund Balances, End of Year 157,256$ (318,070)$ (245,921)$ 72,149$ 2018-01-09 Agenda Packet Page210 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL NOTES PAYABLE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 1,227$ 1,227$ Other revenues 129,001 129,001 364,842 235,841 Total Revenues 129,001 129,001 366,069 237,068 Expenditures: Debt service: Principal retirement 922,790 944,690 943,182 1,508 Interest and fiscal charges 479,110 479,110 476,969 2,141 Total Expenditures 1,401,900 1,423,800 1,420,151 3,649 Excess (Deficiency) of Revenues Over (Under) Expenditures (1,272,899) (1,294,799) (1,054,082) 240,717 Other Financing Sources (Uses): Transfers in 1,272,899 1,294,799 1,291,859 (2,940) Total Other Financing Sources (Uses)1,272,899 1,294,799 1,291,859 (2,940) Net Change in Fund Balances - - 237,777 237,777 Fund Balances, Beginning of Year (5,391) (5,391) (5,391) - Fund Balances, End of Year (5,391)$ (5,391)$ 232,386$ 237,777$ 2018-01-09 Agenda Packet Page211 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL LEASE PAYABLE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ -$ 637$ 637$ Other revenues 44,000 44,000 45,168 1,168 Total Revenues 44,000 44,000 45,805 1,805 Expenditures: Debt service: Principal retirement 503,400 503,400 466,873 36,527 Interest and fiscal charges 138,100 138,100 132,612 5,488 Total Expenditures 641,500 641,500 599,485 42,015 Excess (Deficiency) of Revenues Over (Under) Expenditures (597,500) (597,500) (553,680) 43,820 Other Financing Sources (Uses): Transfers in 560,708 560,708 518,162 (42,546) Total Other Financing Sources (Uses)560,708 560,708 518,162 (42,546) Net Change in Fund Balances (36,792) (36,792) (35,518) 1,274 Fund Balances, Beginning of Year 148,227 148,227 148,227 - Fund Balances, End of Year 111,435$ 111,435$ 112,709$ 1,274$ 2018-01-09 Agenda Packet Page212 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL CITY DEBT SERVICE YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Other Financing Sources (Uses): Transfers in 2,964,162$ 1,830,000$ 290,000$ (1,540,000)$ Transfers out (2,964,162) (1,830,000) (22,320) 1,807,680 Fund Balances, Beginning of Year (19,234,092) (19,234,092) (19,234,092) - Fund Balances, End of Year (19,234,092)$ (19,234,092)$ (18,966,412)$ 267,680$ 2018-01-09 Agenda Packet Page213 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL PUBLIC FINANCING AUTHORITY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ 23,540$ 33,835$ 10,295$ Other revenues - 850 830 (20) Total Revenues - 24,390 34,665 10,275 Expenditures: Current: General government 20,005 16,415 8,600 7,815 Debt service: Principal retirement 4,360,010 11,985,110 3,230,000 8,755,110 Interest and fiscal charges 5,057,120 3,614,520 3,599,105 15,415 Payment to refunded bond escrow agent - - 2,673,892 (2,673,892) Total Expenditures 9,437,135 15,616,045 9,511,597 6,104,448 Excess (Deficiency) of Revenues Over (Under) Expenditures (9,437,135) (15,591,655) (9,476,932) 6,114,723 Other Financing Sources (Uses): Transfers in 9,437,135 42,851,300 34,753,461 (8,097,839) Transfers out - (12,491,310) (51,382) 12,439,928 Proceeds from the issuance of bonds - 8,600,020 8,600,000 (20) Bond premium - 319,670 319,652 (18) Payment to refunded bond escrow agent - (26,200,100) (36,860,637) (10,660,537) Total Other Financing Sources (Uses)9,437,135 13,079,580 6,761,094 (6,318,486) Net Change in Fund Balances - (2,512,075) (2,715,838) (203,763) Fund Balances, Beginning of Year 8,954,346 8,954,346 8,954,346 - Fund Balances, End of Year 8,954,346$ 6,442,271$ 6,238,508$ (203,763)$ 2018-01-09 Agenda Packet Page214 CITY OF CHULA VISTA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL MUNICIPAL FINANCING AUTHORITY YEAR ENDED JUNE 30, 2017 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property -$ 100$ 111$ 11$ Total Revenues - 100 111 11 Expenditures: Current: General government -5,000 1,700 3,300 Debt service: Principal retirement -1,470,000 1,470,000 - Interest and fiscal charges -986,740 985,578 1,162 Payment to refunded bond escrow agent -- -- Total Expenditures - 2,461,740 2,457,278 4,462 Excess (Deficiency) of Revenues Over (Under) Expenditures -(2,461,640) (2,457,167) 4,473 Other Financing Sources (Uses): Transfers in -4,677,870 2,171,441 (2,506,429) Transfers out -(26,200,100) (28,091,002) (1,890,902) Proceeds from the issuance of bonds -25,885,010 25,885,000 (10) Bond premium -2,516,630 2,516,621 (9) Total Other Financing Sources (Uses)- 6,879,410 2,482,060 (4,397,350) Net Change in Fund Balances -4,417,770 24,893 (4,392,877) Fund Balances, Beginning of Year -- -- Fund Balances, End of Year -$ 4,417,770$ 24,893$ (4,392,877)$ 2018-01-09 Agenda Packet Page215 CITY OF CHULA VISTA COMBINING STATEMENT OF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30, 2017 Totals Assets: Current: Cash and investments 83,524$ 292,446$ -$ 375,970$ Receivables: Accounts - - 30,000 30,000 Total Current Assets 83,524 292,446 30,000 405,970 Total Assets 83,524 292,446 30,000 405,970 Deferred Outflows of Resources: Deferred pension contributions - 2,056 - 2,056 Total Deferred Outflows of Resources - 2,056 - 2,056 Liabilities: Current: Accounts payable - 9,000 - 9,000 Unearned revenues - 268,279 - 268,279 Due to other funds - - 27,092 27,092 Total Current Liabilities - 277,279 27,092 304,371 Noncurrent: Net pension liability - 503,455 - 503,455 Total Noncurrent Liabilities - 503,455 - 503,455 Total Liabilities - 780,734 27,092 807,826 Deferred Inflows of Resources: Deferred items related to pensions - 27,456 - 27,456 Total Deferred Inflows of Resources - 27,456 - 27,456 Net Position: Unrestricted 83,524 (513,688) 2,908 (427,256) Total Net Position 83,524$ (513,688)$ 2,908$ (427,256)$ Business-Type Activities - Enterprise Funds Bayfront Trolley Station Transit Fund Chula Vista Mini Golf Course 2018-01-09 Agenda Packet Page216 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Totals Operating Revenues: Other 257$ -$ 30,000$ 30,257$ Total Operating Revenues 257 - 30,000 30,257 Operating Expenses: Administration and general - 39,594 27,092 66,686 Total Operating Expenses - 39,594 27,092 66,686 Operating Income (Loss)257 (39,594) 2,908 (36,429) Nonoperating Revenues (Expenses): Interest revenue 271 - - 271 Total Nonoperating Revenues (Expenses)271 - - 271 Income (Loss)528 (39,594) 2,908 (36,158) Changes in Net Position 528 (39,594) 2,908 (36,158) Net Position: Beginning of Year, as originally reported 82,996 (431,682) - (348,686) Restatements - (42,412) - (42,412) Beginning of Fiscal Year 82,996 (474,094) - (391,098) End of Fiscal Year 83,524$ (513,688)$ 2,908$ (427,256)$ Business-Type Activities - Enterprise Funds Bayfront Trolley Station Transit Fund Chula Vista Mini Golf Course 2018-01-09 Agenda Packet Page217 CITY OF CHULA VISTA COMBINING STATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2017 Totals Cash Flows from Operating Activities: Cash received from customers and users 257$ 42,412$ -$ 42,669$ Cash received from/(paid to) interfund service provided - - 27,092 27,092 Cash paid to employees for services - (30,594) (27,092) (57,686) Net Cash Provided (Used) by Operating Activities 257 11,818 - 12,075 Cash Flows from Non-Capital Financing Activities: Repayment made to other funds - (42,412) - (42,412) Net Cash Provided (Used) by Non-Capital Financing Activities - (42,412) - (42,412) Cash Flows from Investing Activities: Interest received 271 - - 271 Net Cash Provided (Used) by Investing Activities 271 - - 271 Net Increase (Decrease) in Cash and Cash Equivalents 528 (30,594) - (30,066) Cash and Cash Equivalents at Beginning of Year 82,996 323,040 - 406,036 Cash and Cash Equivalents at End of Year 83,524$ 292,446$ -$ 375,970$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)257$ (39,594)$ 2,908$ (36,429)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: (Increase) decrease in accounts receivable - 42,412 (30,000) 12,412 Increase (decrease) in accounts payable - 9,000 - 9,000 Increase (decrease) in due to other funds - - 27,092 27,092 Total Adjustments - 51,412 (2,908) 48,504 Net Cash Provided (Used) by Operating Activities 257$ 11,818$ -$ 12,075$ Non-Cash Investing, Capital, and Financing Activities: Restatement of net position -$ (42,412)$ -$ (42,412)$ Business-Type Activities - Enterprise Funds Bayfront Trolley Station Transit Fund Chula Vista Mini Golf Course 2018-01-09 Agenda Packet Page218 CITY OF CHULA VISTA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS JUNE 30, 2017 Totals Assets: Current: Cash and investments 1,412,265$ 2,650$ 1,716,671$ 3,131,586$ Receivables: Accounts 66,228 - 6,782 73,010 Prepaid costs 896 - - 896 Restricted: Cash with fiscal agent - - 625,000 625,000 Total Current Assets 1,479,389 2,650 2,348,453 3,830,492 Noncurrent: Capital assets - net of accumulated depreciation 968,103 - - 968,103 Total Noncurrent Assets 968,103 - - 968,103 Total Assets 2,447,492 2,650 2,348,453 4,798,595 Deferred Outflows of Resources: Deferred pension contributions 540,945 - - 540,945 Total Deferred Outflows of Resources 540,945 - - 540,945 Liabilities: Current: Accounts payable 265,089 - 51,867 316,956 Accrued liabilities 22,356 - - 22,356 Accrued compensated absences 16,706 - - 16,706 Total Current Liabilities 304,151 - 51,867 356,018 Noncurrent: Accrued compensated absences 32,001 - - 32,001 Net pension liability 2,947,041 - - 2,947,041 Total Noncurrent Liabilities 2,979,042 - - 2,979,042 Total Liabilities 3,283,193 - 51,867 3,335,060 Deferred Inflows of Resources: Deferred items related to pensions 21,067 - - 21,067 Total Deferred Inflows of Resources 21,067 - - 21,067 Net Position: Investment in capital assets 968,103 - - 968,103 Unrestricted (1,283,926) 2,650 2,296,586 1,015,310 Total Net Position (315,823)$ 2,650$ 2,296,586$ 1,983,413$ Governmental Activities - Internal Service Funds Fleet Management Technology Replacement Workers Compensation 2018-01-09 Agenda Packet Page219 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2017 Totals Operating Revenues: Interdepartmental charges 3,206,863$ -$ 3,595,227$ 6,802,090$ Other 43,437 - - 43,437 Total Operating Revenues 3,250,300 - 3,595,227 6,845,527 Operating Expenses: Administration and general 3,131,650 127,349 3,725,709 6,984,708 Depreciation expense 393,291 - - 393,291 Total Operating Expenses 3,524,941 127,349 3,725,709 7,377,999 Operating Income (Loss)(274,641) (127,349) (130,482) (532,472) Nonoperating Revenues (Expenses): Interest revenue 3,894 - - 3,894 Gain (loss) on disposal of capital assets 8,970 - - 8,970 Total Nonoperating Revenues (Expenses)12,864 - - 12,864 Income (Loss) Before Transfers (261,777) (127,349) (130,482) (519,608) Transfers in - - 1,500,000 1,500,000 Changes in Net Position (261,777) (127,349) 1,369,518 980,392 Net Position: Beginning of Year, as originally reported (144,529) 129,999 927,068 912,538 Restatements 90,483 - - 90,483 Beginning of Fiscal Year (54,046) 129,999 927,068 1,003,021 End of Fiscal Year (315,823)$ 2,650$ 2,296,586$ 1,983,413$ Governmental Activities - Internal Service Funds Fleet Management Technology Replacement Workers Compensation 2018-01-09 Agenda Packet Page220 CITY OF CHULA VISTA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30, 2017 Totals Cash Flows from Operating Activities: Cash received from/(paid to) interfund service provided 3,184,406$ -$ 3,588,445$ 6,772,851$ Cash paid to suppliers for goods and services 83,791 - 51,867 135,658 Cash paid to employees for services (3,128,207) (127,349) (3,725,709) (6,981,265) Net Cash Provided (Used) by Operating Activities 139,990 (127,349) (85,397) (72,756) Cash Flows from Non-Capital Financing Activities: Cash transfers in - - 1,500,000 1,500,000 Repayment received from other funds 90,483 - - 90,483 Net Cash Provided (Used) by Non-Capital Financing Activities 90,483 - 1,500,000 1,590,483 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (194,245) - - (194,245) Proceeds from sales of capital assets 20,008 - - 20,008 Net Cash Provided (Used) by Capital and Related Financing Activities (174,237) - - (174,237) Cash Flows from Investing Activities: Interest received 3,894 - - 3,894 Net Cash Provided (Used) by Investing Activities 3,894 - - 3,894 Net Increase (Decrease) in Cash and Cash Equivalents 60,130 (127,349) 1,414,603 1,347,384 Cash and Cash Equivalents at Beginning of Year 1,352,135 129,999 927,068 2,409,202 Cash and Cash Equivalents at End of Year 1,412,265$ 2,650$ 2,341,671$ 3,756,586$ Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income (loss)(274,641)$ (127,349)$ (130,482)$ (532,472)$ Adjustments to reconcile operating income (loss) net cash provided (used) by operating activities: Depreciation 393,291 - - 393,291 (Increase) decrease in accounts receivable (65,894) - (6,782) (72,676) (Increase) decrease in deferred outflows from pensions (332,113) - - (332,113) (Increase) decrease in prepaid costs (896) - - (896) Increase (decrease) in accounts payable 84,687 - 51,867 136,554 Increase (decrease) in accrued liabilities (5,879) - - (5,879) Increase (decrease) in compensated absences (33,675) - - (33,675) Increase (decrease) in net pension liability 455,287 - - 455,287 Increase (decrease) in deferred inflows from pensions (80,177) - - (80,177) Total Adjustments 414,631 - 45,085 459,716 Net Cash Provided (Used) by Operating Activities 139,990$ (127,349)$ (85,397)$ (72,756)$ Non-Cash Investing, Capital, and Financing Activities: Gain/(Loss) on disposition of capital assets 8,970$ -$ -$ 8,970$ Governmental Activities - Internal Service Funds Fleet Management Technology Replacement Workers Compensation 2018-01-09 Agenda Packet Page221 CITY OF CHULA VISTA COMBINING STATEMENT OF NET POSITION ALL AGENCY FUNDS JUNE 30, 2017 Totals Assets: Pooled cash and investments 269,694$ 8,755,654$ -$ 9,025,348$ Receivables: Accrued interest - - 1,431 1,431 Restricted assets: Cash and investments - - 15,048,347 15,048,347 Cash and investments with fiscal agents - 30,815,087 - 30,815,087 Total Assets 269,694$ 39,570,741$ 15,049,778$ 54,890,213$ Liabilities: Accounts payable 10,507$ 110$ 669,045$ 679,662$ Unearned revenues 14,162 - 1,431 15,593 Deposits payable - - 14,379,302 14,379,302 Due to external parties/other agencies 245,025 39,570,631 - 39,815,656 Total Liabilities 269,694 $ 39,570,741 $ 15,049,778 $ 54,890,213 $ Flexible Spending Account Special Assessment District Miscellaneous Deposits 2018-01-09 Agenda Packet Page222 CITY OF CHULA VISTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2017 Balance Balance 7/1/2016 Additions Deductions 6/30/2017 Flexible Spending Account Assets: Pooled cash and investments 151,241$ 1,113,434$ 994,981$ 269,694$ Total Assets 151,241$ 1,113,434$ 994,981$ 269,694$ Liabilities: Accounts payable -$ 19,007$ 8,500$ 10,507$ Unearned revenues 14,162 - - 14,162 Due to external parties/other agencies 137,079 1,563,217 1,455,271 245,025 Total Liabilities 151,241$ 1,582,224$ 1,463,771$ 269,694$ Special Assessment District Assets: Pooled cash and investments 8,289,365$ 16,117,434$ 15,651,145$ 8,755,654$ Restricted assets: Cash and investments with fiscal agents 30,604,895 9,027,236 8,817,044 30,815,087 Total Assets 38,894,260$ 25,144,670$ 24,468,189$ 39,570,741$ Liabilities: Accounts payable -$ 18,965$ 18,855$ 110$ Due to external parties/other agencies 38,894,260 80,683,010 80,006,639 39,570,631 Total Liabilities 38,894,260$ 80,701,975$ 80,025,494$ 39,570,741$ Miscellaneous Deposits Assets: Receivables: Accrued interest -$ 2,862$ 1,431$ 1,431$ Restricted assets: Cash and investments - 36,149,360 21,101,013 15,048,347 Total Assets -$ 36,152,222$ 21,102,444$ 15,049,778$ Liabilities: Accounts payable -$ 5,218,075$ 4,549,030$ 669,045$ Unearned revenues - 2,862 1,431 1,431 Deposits payable - 40,454,179 26,074,877 14,379,302 Total Liabilities -$ 45,675,116$ 30,625,338$ 15,049,778$ Totals - All Agency Funds Assets: Pooled cash and investments 8,440,606$ 17,230,868$ 16,646,126$ 9,025,348$ Receivables: Accrued interest - 2,862 1,431 1,431 Restricted assets: Cash and investments - 36,149,360 21,101,013 15,048,347 Cash and investments with fiscal agents 30,604,895 9,027,236 8,817,044 30,815,087 Total Assets 39,045,501$ 62,410,326$ 46,565,614$ 54,890,213$ Liabilities: Accounts payable -$ 5,256,047$ 4,576,385$ 679,662$ Unearned revenues 14,162 2,862 1,431 15,593 Pass-through payables - - - - Deposits payable - 40,454,179 26,074,877 14,379,302 Due to external parties/other agencies 39,031,339 82,246,227 81,461,910 39,815,656 Total Liabilities 39,045,501$ 127,959,315$ 112,114,603$ 54,890,213$ 2018-01-09 Agenda Packet Page223 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. Page No. Financial Trends 181-185 These schedules contain information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity 186-189 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 190-194 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 195-197 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 198-199 These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs. CITY OF CHULA VISTA Statistical Section Table of Contents 06/30 2018-01-09 Agenda Packet Page224        2018-01-09 Agenda Packet Page225 2008 2009 2010 2011 2012 20132014201520162017Governmental activities:Invested in capital assets, net of related debt621,878,119$ 623,938,515$ 634,377,842$ 634,409,385$ 655,182,727$ 626,476,481$ 649,314,016$ 643,174,160$ 672,940,012$ 1,031,902,782$ Restricted55,166,660 43,901,854 49,193,256 47,168,636 22,929,585 21,888,309 107,106,257 129,460,665 125,439,323 128,114,370 Unrestricted91,683,171 89,235,419 73,916,496 72,730,796 89,620,724 111,886,462 22,522,443 (245,432,296) (222,570,459) (222,843,737) Total governmental activities net assets768,727,950 757,075,788 757,487,594 754,308,817 767,733,036 760,251,252 778,942,716 527,202,529 575,808,876 937,173,415 Business-type activities: Invested in capital assets, net of related debt150,004,170 148,237,562 152,384,420 146,550,585 140,248,319 134,661,254 136,513,268 134,368,634 135,989,851 331,199,513 Restricted- - - - - - 5,141,430 2,803,451 2,593,403 Unrestricted55,294,988 64,860,578 74,385,651 80,214,208 86,521,327 93,401,745 97,393,640 71,945,411 67,970,476 72,366,978 Total business-type activities net assets205,299,158 213,098,140 226,770,071 226,764,793 226,769,646 228,062,999 233,906,908 211,455,475 206,763,778 406,159,894 Primary government:Invested in capital assets, net of related debt771,882,289 772,176,077 786,762,262 780,959,970 795,431,046 761,137,735 785,827,284 777,542,794 808,929,863 1,363,102,295 Restricted55,166,660 43,901,854 49,193,256 47,168,636 22,929,585 21,888,309 107,106,257 134,602,095 128,242,774 130,707,773 Unrestricted146,978,159 154,095,997 148,302,147 152,945,004 176,142,051 205,288,207 119,916,083 (173,486,885) (154,599,983) (150,476,759) Total primary government net assets974,027,108$ 970,173,928$ 984,257,665$ 981,073,610$ 994,502,682$ 988,314,251$ 1,012,849,624$ 738,658,004$ 782,572,654$ 1,343,333,309$ Sewer funds were converted to an enterprise fund in fiscal year 2008.CITY OF CHULA VISTANet Assets by ComponentLast Ten Fiscal Years(accrual basis of accounting)2018-01-09 Agenda Packet Page226 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Expenses: Governmental activities: General government 51,609,403$ 49,216,220$ 51,136,412$ 46,457,112$ 22,508,977$ 33,652,891$ 25,386,867$ 36,486,645$ 25,564,824$ 35,375,230$ Public safety 78,633,467 76,097,546 74,008,767 75,664,246 75,931,086 77,821,520 74,896,803 81,002,999 87,749,418 94,716,683 Community Development 207,308 1,974,046 1,552,750 Community Services 12,837 5,632 14,990 Public works 86,410,082 72,509,779 69,524,903 71,857,158 76,458,061 69,297,402 63,312,155 62,454,130 67,910,401 68,885,918 Parks and recreation 9,650,399 9,805,893 7,849,907 6,995,489 7,310,312 5,865,192 6,118,351 6,441,907 6,834,240 6,875,635 Library 8,532,621 7,617,286 4,826,602 4,509,999 4,185,624 4,224,568 4,092,263 3,906,984 3,997,677 5,018,878 Transit - - - - 63,021 14,560 - - - - Interest on long-term debt 13,656,534 13,064,138 11,217,753 11,538,707 8,904,275 6,698,509 7,287,461 6,601,927 6,073,434 4,673,047 Total governmental activities expenses 248,492,506 228,310,862 218,564,344 217,022,711 195,361,356 197,574,642 181,093,900 197,114,737 200,109,672 217,113,131 Business-type activities: Transit 8,301,081 8,147,424 7,571,898 7,075,998 7,050,673 6,997,488 6,875,214 4,807,985 86,512 39,594 Bayfront Trolley Station 98,406 98,800 94,802 91,788 91,942 92,843 61,823 59,863 - - Sewer funds 30,323,015 23,528,217 29,240,616 30,245,584 30,524,851 30,773,712 26,046,175 31,615,457 25,234,891 32,179,875 Sewer DIFs 203,500 200,660 126,019 123,629 129,351 122,927 129,279 120,197 1,146,838 8,305 Development Services Fund - - - - 4,730,599 5,717,312 6,113,133 5,996,109 5,741,600 6,655,654 Chula Vista Mini Golf Course 27,092 CV Elite Athlete Training Ctr 449,028 Interest on long-term debt 62,927 - - - - - - - - - Total business-type activities expenses 38,988,929 31,975,101 37,033,335 37,536,999 42,527,416 43,704,282 39,225,624 42,599,611 32,209,841 39,359,548 Total primary government expenses 287,481,435 260,285,963 255,597,679 254,559,710 237,888,772 241,278,924 220,319,524 239,714,348 232,319,513 256,472,679 Program revenues: Governmental activities: Charges for services: General government 38,563,085 35,959,181 32,419,505 29,785,079 5,955,849 5,795,838 8,767,069 7,623,676 6,468,756 12,317,921 Public safety 8,148,817 7,954,060 8,833,813 7,989,893 8,658,579 8,893,631 10,198,058 12,100,712 11,764,603 11,997,221 Community Development 297,866 730,197 771,603 Public works 23,112,265 25,793,234 28,761,170 33,378,070 32,767,261 35,758,786 30,495,980 31,703,848 24,218,733 32,598,199 Parks and recreation 11,881,147 2,776,032 2,559,668 3,599,653 3,051,842 7,631,696 5,292,433 4,511,278 10,683,649 8,221,019 Library 561,948 326,116 505,044 967,908 840,258 1,666,765 1,078,592 1,302,869 1,943,416 1,575,837 Operating grants and contributions 34,498,639 18,957,467 17,984,120 31,976,818 21,780,868 30,935,863 29,456,557 25,102,165 22,416,276 22,751,556 Capital grants and contributions 50,632,109 16,754,583 23,711,994 4,781,625 4,283,855 2,936,133 1,921,554 12,954,191 7,143,130 5,619,731 Total governmental activities program revenues 167,398,010 108,520,673 114,775,314 112,479,046 77,338,512 93,618,712 87,210,243 95,596,605 85,368,760 95,853,087 CITY OF CHULA VISTA Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting)2018-01-09 Agenda PacketPage227 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 CITY OF CHULA VISTA Changes in Net Position Last Ten Fiscal Years (accrual basis of accounting) Business-type activities: Charges for services: Transit 1,660,821 3,679,761 3,335,334 2,534,385 2,671,538 2,841,619 2,672,231 1,503,262 - - Sewer funds 29,138,449 31,046,180 36,284,081 32,257,256 32,571,135 35,011,268 33,190,660 36,054,603 35,775,374 36,289,930 Sewer DIFs 539,136 232,430 166,303 443,599 174,667 645,015 268,092 166,333 239,143 111,907 Development Services Fund - - - - 4,174,657 6,654,261 6,338,495 6,118,566 6,546,936 7,291,037 Operating grants and contributions 5,378,518 3,390,228 3,357,566 3,431,988 3,524,426 3,095,626 3,800,358 5,474,658 306,884 - Capital grants and contributions - - - - - - - - - - Total business-type activities program revenues 36,716,924 38,348,599 43,143,284 38,667,228 43,116,423 48,247,789 46,269,836 49,317,422 42,868,337 43,692,874 Total primary government program revenues 204,114,934 146,869,272 157,918,598 151,146,274 120,454,935 141,866,501 133,480,079 144,914,027 128,237,097 139,545,961 Net revenues (expenses): Governmental activities (81,094,496) (119,790,189) (103,789,030) (104,543,665) (118,022,844) (103,955,930) (93,883,657) (101,518,132) (114,740,912) (121,260,044) Business-type activities (2,272,005) 6,373,498 6,109,949 1,130,229 589,007 4,543,507 7,044,212 6,717,811 10,658,496 4,333,326 Total net revenues (expenses)(83,366,501) (113,416,691) (97,679,081) (103,413,436) (117,433,837) (99,412,423) (86,839,445) (94,800,321) (104,082,416) (116,926,718) General revenues and other changes in net assets: Governmental activities: Taxes: Property taxes 43,388,023 43,319,156 41,798,577 39,437,025 49,721,604 45,146,022 45,266,172 47,485,292 50,136,856 53,248,196 Sales tax 29,062,355 26,263,317 23,674,601 26,702,443 27,275,753 28,627,785 29,171,174 30,394,291 33,317,380 36,469,033 Other taxes 21,922,357 21,643,366 21,927,677 17,485,387 16,431,529 18,966,240 32,145,209 23,225,498 24,463,262 24,101,777 Investment income 8,663,014 12,676,922 5,744,616 9,108,662 3,615,266 866,861 1,944,988 4,219,304 6,233,144 2,954,403 Other general revenues 8,343,946 355,175 7,581,794 5,193,653 1,530,568 2,356,802 686,054 14,437 1,034,027 8,970 Miscellaneous - - - - - - - 27,882 336,661 1,677,271 Transfers 5,594,536 3,880,091 3,473,571 3,437,718 4,195,190 3,861,417 3,551,004 3,848,746 2,799,555 4,180,778 Total general revenues and transfers 116,974,231 108,138,027 104,200,836 101,364,888 102,769,910 99,825,127 112,764,601 109,215,450 118,320,885 122,640,428 Extraordinary gain - - - - 28,677,153 - - - - - Total governmental activities 116,974,231 108,138,027 104,200,836 101,364,888 131,447,063 99,825,127 112,764,601 109,215,450 118,320,885 122,640,428 Business-type activities: Investment income 6,740,155 2,090,311 1,785,660 1,288,478 1,273,689 261,354 1,505,052 641,978 1,357,938 322,527 Miscellaneous 670,170 3,215,264 9,249,893 1,013,733 2,337,347 349,909 845,650 2,789,595 524,616 198,847,750 Gain on Sale of Capital Asset 115,703 Transfers (5,594,536) (3,880,091) (3,473,571) (3,437,718) (4,195,190) (3,861,417) (3,551,004) (3,848,746) (2,799,555) (4,180,778) Total business-type activities 1,815,789 1,425,484 7,561,982 (1,135,507) (584,154) (3,250,154) (1,200,302) (417,173) (917,001) 195,105,202 Total primary government 118,790,020 109,563,511 111,762,818 100,229,381 130,862,909 96,574,973 111,564,299 108,798,277 117,403,884 317,745,630 Changes in net assets Governmental activities 35,879,735 (11,652,162) 411,806 (3,178,777) 13,424,219 (4,130,803) 18,880,944 7,697,318 3,579,973 1,380,384 Business-type activities (456,216) 7,798,982 13,671,931 (5,278) 4,853 1,293,353 5,843,910 6,300,638 9,741,495 199,438,528 Total primary government 35,423,519$ (3,853,180)$ 14,083,737$ (3,184,055)$ 13,429,072$ (2,837,450)$ 24,724,854$ 13,997,956$ 13,321,468$ 200,818,912$ Sewer funds were converted to an enterprise fund in fiscal year 2008.2018-01-09 Agenda PacketPage228 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 General fund: Nonspendable -$ -$ -$ 11,258,150$ 8,799,026$ 7,481,079$ 7,424,812$ 7,419,002$ 1,527,055$ 7,363,413$ Restricted - - - 127,883 - 750,951 - - - - Committed - - - 7,178,838 4,375,207 2,298,088 6,215,601 7,602,021 6,417,095 5,938,600 Assigned - - - 5,298,536 2,895,545 6,648,922 4,807,244 4,688,124 4,315,568 8,526,339 Unassigned - - - 11,876,992 11,969,280 10,790,135 14,511,252 16,412,879 25,132,939 20,020,613 Reserved 22,258,951 20,732,416 19,478,496 - - - Unreserved 11,817,191 12,417,105 13,703,304 - - - - - - - Total general fund 34,076,142 33,149,521 33,181,800 35,740,399 28,039,058 27,969,175 32,958,909 36,122,026 37,392,657 41,848,965 All other governmental funds: Nonspendable - - - 21,669,849 30,763,746 29,774,472$ 23,537,524$ 7,419,002$ 1,527,055$ -$ Restricted - - - 109,944,736 83,439,558 91,152,341 107,106,257 129,464,688 - 31,385,200 Committed - - - 17,370,613 12,842,477 10,617,691 10,677,564 17,186,197 6,417,095 345,095 Assigned - - - (2,402,991) - - - 4,688,124 29,448,507 - Unassigned - - - (59,092,342) (37,420,734) (37,277,498) (40,451,233) (20,803,239) 25,132,939 (422,149) Reserved 26,305,432 33,197,517 61,852,404 - - - Unreserved, reported in: Debt service funds (43,496,817) (46,692,600) (56,280,718) - - - - - - - Capital projects funds 78,496,664 70,791,397 58,595,303 - - - - - - - Special revenue funds 48,690,364 42,565,836 27,334,131 - - - - - - - Total all other governmental funds 109,995,643$ 99,862,150$ 91,501,120$ 87,489,865$ 89,625,047$ 94,267,006$ 100,870,112$ 137,954,772$ 62,525,596$ 31,308,146$ Sewer funds were converted to an enterprise fund in fiscal year 2008. Fiscal Year CITY OF CHULA VISTA Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)2018-01-09 Agenda PacketPage229 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Revenues: Taxes 103,543,735$ 91,770,846$ 87,263,934$ 88,878,664$ 96,868,086$ 82,450,711$ 106,825,885$ 112,594,714$ 110,452,962$ 121,462,604$ Licenses and permits 2,767,850 2,041,721 2,274,964 2,887,150 1,253,806 1,436,828 1,355,342 1,322,254 1,328,020 1,290,968 Fines and forfeitures 2,671,545 3,317,666 3,124,021 2,348,565 2,065,246 1,639,781 1,685,268 2,280,880 1,942,656 1,805,508 Investment income 10,890,132 10,103,986 6,299,595 8,716,624 5,077,920 2,929,237 4,698,387 5,044,602 7,006,545 3,766,457 Developer fees 17,318,134 9,252,547 11,700,991 16,498,744 13,966,814 21,742,856 9,515,921 7,484,592 11,657,266 8,810,178 Intergovernmental 43,962,835 39,497,983 41,965,596 48,177,707 21,861,011 40,953,981 28,647,410 26,409,294 23,868,074 23,427,460 Charges for services 15,679,753 12,435,955 11,877,763 11,743,505 20,907,330 23,440,813 20,748,232 20,112,124 22,647,645 26,662,094 Other 30,427,119 29,404,221 31,918,308 28,163,311 13,382,050 14,521,818 14,896,960 15,932,194 15,839,288 23,529,357 Total revenues 227,261,103 197,824,925 196,425,172 207,414,270 175,382,263 189,116,025 188,373,405 191,180,654 194,742,456 210,754,626 Expenditures Current: General government 49,596,883 43,640,514 45,966,934 39,701,396 23,833,011 25,544,079 29,341,881 26,413,901 29,087,838 33,218,003 Public safety 74,781,055 72,872,527 72,080,790 70,693,779 71,917,414 73,177,912 76,457,979 80,235,099 83,637,644 87,731,136 Public works 57,789,303 46,042,781 45,778,665 48,056,229 47,911,105 48,416,477 40,894,934 41,459,698 49,775,141 45,135,590 Community Development 1,974,046 2,030,654 Parks and recreation 6,869,089 6,969,924 5,255,812 4,030,767 4,215,643 3,471,548 3,590,441 3,746,349 4,059,567 4,246,605 Library 8,224,897 7,199,101 4,563,849 3,870,646 3,672,661 3,241,660 3,810,004 3,625,949 3,969,307 4,721,120 Capital outlay 29,525,186 19,305,564 27,628,148 34,215,021 16,182,888 21,144,133 15,347,338 22,216,530 12,976,408 19,172,666 Debt service:- - - Principal retirement 7,884,493 7,686,525 7,301,362 7,911,995 8,423,156 5,113,992 54,040,855 5,340,205 34,980,737 6,110,055 Interest and fiscal charges 12,224,973 12,576,939 11,585,816 11,094,106 9,229,775 6,818,788 7,850,448 6,678,144 6,437,941 5,194,264 Bond issuance cost 34,485 844,584 - - - - - - - - Payment to refunded bond escrow agent - - - - - - - - 422,751 2,673,892 Total expenditures 246,930,364 217,138,459 220,161,376 219,573,939 185,385,653 186,928,589 231,333,880 189,715,875 227,321,380 210,233,985 Excess (deficiency) of revenues over (under) expenditures (19,669,261) (19,313,534) (23,736,204) (12,159,669) (10,003,390) 2,187,436 (42,960,475) 1,464,779 (32,578,924) 520,641 Other financing sources (uses): Transfers in 26,104,914 50,502,425 61,296,934 56,989,583 33,900,786 20,113,296 30,478,465 21,708,446 27,905,430 49,858,764 Transfers out (20,400,837) (46,589,803) (57,815,981) (53,551,865) (32,638,610) (16,551,879) (27,503,760) (18,897,272) (25,949,256) (47,177,986) Proceeds from long-term debt - 665,884 29,355,000 42,286 3,963,104 2,174,204 2,121,500 578,224 377,487 - Proceeds from bond sale 10,264,224 21,625,000 207,372 - - - 45,920,000 - 34,330,000 34,485,000 Payment to escrow agent trust - (15,110,000) (16,710,000) - - - - - (7,135,000) (36,860,637) Bond premium/(bond discount)- (579,161) (925,872) - - - 3,537,111 - 2,262,493 2,836,273 Capital Leases 1,285,053 Proceeds from sale of capital assets - - - 9,630,000 - - - - - - Total other financing ....... sources (uses)15,968,301 10,514,345 15,407,453 13,110,004 5,225,280 5,735,621 54,553,316 3,389,398 31,791,154 4,426,467 Extraordinary item: Loss on dissolution of the Chula Vista Redevelopment Agency - - - - (3,191,040) - - - - - Total extraordinary item - - - - (3,191,040) - - - - - Net change in fund balances (3,700,960)$ (8,799,189)$ (8,328,751)$ 950,335$ (7,969,150)$ 7,923,057$ 11,592,841$ 4,854,177$ (787,770)$ 4,947,108$ Debt service as a percentage of noncapital expenditures 8.8%10.2%9.6%9.4%10.1%6.9%30.3%7.4%20.7%6.2% Sewer funds were converted to an enterprise fund in fiscal year 2008. Fiscal Year CITY OF CHULA VISTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting)2018-01-09 Agenda PacketPage230 Fiscal Year Taxable Taxable Total Ended Less: Assessed Less: Assessed Direct Tax June 30 Secured Unsecured Exemptions Value 2 Secured Unsecured Exemptions 3 Value Rate 2008 24,381,647,068 544,113,016 (567,257,524) 24,358,502,560 1,058,205,677 94,614,761 - 1,152,820,438 0.1438% 2009 24,861,548,900 565,347,815 (603,500,966) 24,823,395,749 1,061,746,125 105,702,620 - 1,167,448,745 0.1438% 2010 22,168,954,872 610,945,054 (682,909,923) 22,096,990,003 1,094,004,250 131,944,885 - 1,225,949,135 0.1438% 2011 21,341,397,693 577,214,653 (683,167,117) 21,235,445,229 1,042,561,908 130,433,921 - 1,172,995,829 0.1438% 2012 21,280,088,193 613,792,400 (739,917,158) 21,153,963,435 1,054,772,168 157,330,744 - 1,212,102,912 0.1438% 2013 21,173,362,084 565,751,305 (796,316,481) 20,942,796,908 1,045,060,350 97,973,502 - 1,143,033,852 0.1438% 2014 21,922,151,025 555,819,631 (831,701,747) 21,646,268,909 1,150,985,609 104,386,694 - 1,255,372,303 0.1438% 2015 23,413,030,465 542,342,957 (864,933,069) 23,090,440,353 1,142,294,084 101,995,779 - 1,244,289,863 0.1438% 2016 24,754,131,895 549,312,047 (847,445,301) 24,455,998,641 1,209,286,482 117,991,956 - 1,327,278,438 0.1438% 2017 26,210,551,258 543,505,450 (977,982,199) 25,776,074,509 1,246,659,237 107,794,167 - 1,354,453,404 0.1438% 1 Redevelopment Agency dissolved as of January 31, 2012. Successor Agency formed February 1, 2012. 2 Includes redevelopment incremental valuation. 3 Redevelopment Agency/Successor Agency exemptions are included in City exemption data as they are not reported separately. Source: County of San Diego Property Tax Services Valuation Report, Tax Rate by Tax Rate Area, ACAP 345B CITY OF CHULA VISTA City Redevelopment Agency/Successor Agency 1 Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years NOTE: In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%).With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 2018-01-09 Agenda Packet Page231 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 City Direct Rates: City basic rate 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 Overlapping Rates: Chula Vista Elementary School 0.0203 0.0176 0.0251 0.0261 0.0259 0.0253 0.0463 0.0475 0.04301 0.04323 District Bonds Sweetwater Union High School 0.0471 0.0462 0.0558 0.0552 0.0608 0.0586 0.0582 0.0541 0.05169 0.05162 District Bonds Southwestern Community 0.0125 0.0132 0.0344 0.0364 0.0331 0.0375 0.0368 0.0358 0.03961 0.03856 College Bonds MWD D/S Remainder of 0.0045 0.0043 0.0043 0.0037 0.0037 0.0035 0.0035 0.0035 0.0035 0.0035 SDCWA 15019999 County of San Diego**1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Total Overlapping Rates 1.0844 1.0813 1.1196 1.1213 1.1235 1.1249 1.1448 1.1409 1.1378 1.1369 Breakdown of the County of San Diego 1.00 Rate:** County General Gen Elem Chula Vista High Sweetwater Union Southwestern Community College County School Service County School Service - Capital Outlay Childrens Institutions Tuition Regional Occupational Centers Chula Vista Project (19/84601) Chula Vista Project (19/84602) Educational Revenue Augmentation Fund Chula Vista City South Bay Irrigation CWA South Bay Irrigation San Diego Unified Port Total Source: County of San Diego Property Tax Services CITY OF CHULA VISTA Direct and Overlapping Property Tax Rates (Rate per $100 of assessed value) 0.00000000 1.00000000 0.00019695 0.00039390 0.14676995 0.14375071 0.00000000 0.00376946 Last Ten Fiscal Years 0.00483027 0.15920355 0.29103670 0.18823068 0.05072194 0.00757296 0.00190859 0.00161434 NOTE: In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of school bonds and other debt service. Overlapping rates may vary by tax rate area. The data listed in this table is representative of tax rate area 001001. 2018-01-09 Agenda Packet Page232 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value Rohr Inc.198,528,281$ 1 0.77% 177,103,974 3 0.73% Homefed Otay Land II LLC 155,952,435 2 0.61%- John Hancock Life Insurance Co 144,662,789 3 0.56%- GGP Otay Ranch LP 119,625,786 4 0.46% 259,573,098 2 1.07% Regulo Place Apt Investors L 105,233,043 5 0.41% Brisa Acquisitions LLC 102,677,670 6 0.40% Vista Pacific Villas LP 93,361,400 7 0.36% JBP Development 85,611,502 8 0.33% HCA Properties 80,567,753 9 0.31% - BREFMCA LLC 77,685,406 10 0.30% Village II of Otay HB Sub GP 350,954,456 1 1.44% Shea Homes Ltd Partnership - - 173,481,320 4 0.71% Rancho Mesa LP - - 164,892,023 5 0.68% Village II of Otay LP - - 163,433,695 6 0.67% Gateway Chula Vista 2 LLC - - 140,210,419 7 0.58% Otay Ranch II Sun 12 LLC - - 129,711,974 8 0.53% Otay Ranch Twenty - Two LLC - - 109,644,058 9 0.45% Winding Walk Residential LLC 90,273,611 10 0.37% 1,163,906,065$ 4.52%1,759,278,628 7.23% The amounts shown above include assessed value data for both the City and the Redevelopment Successor Agency. Source: MuniServices, LLC County of San Diego Property Tax Services PT Base Tab Taxable Assessed Value for FYE CITY OF CHULA VISTA 2017 2008 Current Year and Nine Years Ago Principal Property Tax Payers 2018-01-09 Agenda Packet Page233 Property Tax Levies and Collections Last Ten Fiscal Years Fiscal Taxes Levied Collections in Year Ended for the Percent Subsequent Percent June 30 Fiscal Year 1 Amount of Levy Years 2 Amount of Levy 2008 28,641,734 27,506,299 96.04% 460,875 27,967,173 97.64% 2009 29,304,771 28,147,698 96.05% 765,703 28,913,402 98.66% 2010 26,246,478 25,313,706 96.45% 538,429 25,852,135 98.50% 2011 25,325,126 24,773,002 97.82% 134,325 24,907,328 98.35% 2012 25,373,780 24,669,632 97.22% (35,474) 24,634,158 97.09% 2013 25,352,454 24,982,072 98.54% 117,973 25,100,045 99.00% 2014 26,063,753 25,758,225 98.83% 39,776 25,798,000 98.98% 2015 27,726,666 27,398,740 98.82% 36,404 27,435,143 98.95% 2016 29,083,269 28,800,156 99.03% 68,973 28,869,128 99.26% 2017 30,632,668 30,388,650 99.20% 49,984 30,438,634 99.37% 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 ACAP234A 1% Collected within the Fiscal Year of Levy Total Collections to Date CITY OF CHULA VISTA 2018-01-09 Agenda Packet Page234 Fiscal Year Pension Tax Total Percentage Debt Ended Obligation Allocation Certificates of Governmental of Personal Per June 30 Bonds Bonds Loans Participation Activities Income 1 Capita 1 2008 8,820,000 40,185,000 19,304,342 135,045,000 203,354,342 2.15%878 2009 7,000,000 45,830,000 18,736,012 130,580,000 202,146,012 2.03%857 2010 4,980,000 44,925,000 17,686,144 139,700,000 207,291,144 2.24%866 2011 2,655,000 43,985,000 16,876,860 136,060,000 199,576,860 1.91%818 2012 - 43,005,000 19,673,344 132,290,000 194,968,344 1.85%791 2013 - -2 14,182,697 128,375,000 142,557,697 1.39% 568 2014 - -2 18,366,623 121,650,000 140,016,623 1.34% 546 2015 - -2 17,849,316 117,590,000 135,439,316 1.23% 520 2016 - -2 18,673,487 111,195,000 129,868,487 1.12% 494 2017 - -2 21,445,777 106,025,000 127,470,777 1.04% 481 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. Governmental Activities CITY OF CHULA VISTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years 2018-01-09 Agenda Packet Page235 Fiscal Year Pension Tax Percent of Ended Obligation Allocation Assessed Per June 30 Bonds Bonds Total Value 1 Capita 2008 8,820 40,185 49,005 0.20%212 2009 7,000 45,830 52,830 0.21%224 2010 4,980 44,925 49,905 0.23%208 2011 2,655 43,985 46,640 0.22%191 2012 - 43,005 43,005 0.20%174 2013 - 41,985 41,985 0.20%167 2014 - 40,920 40,920 0.19%160 2015 - 39,230 39,230 0.17%151 2016 37,465 37,465 0.15%142 2017 29,315 29,315 0.11%111 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. Outstanding General Bonded Debt CITY OF CHULA VISTA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) 2018-01-09 Agenda Packet Page236 2016-17 Assessed Valuation: $25,776,074,509 Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT:6/30/17 % Applicable (1)Debt 6/30/17 Metropolitan Water District 74,905,000$ 0.996%746,054$ Otay Municipal Water District, I.D. No. 27 3,995,000 99.996 3,994,840 Southwestern Community College District 326,088,676 51.349 167,443,274 Sweetwater Union High School District 391,939,739 61.283 240,192,430 Chula Vista City School District 48,750,000 87.351 42,583,613 Chula Vista City School District Schools Facilities Improvement Dist 1 83,580,000 78.315 65,455,677 National School District 26,050,000 2.871 747,896 City of Chula Vista Community Facilities Districts 133,015,000 100. 133,015,000 25,605,016 100.25,605,016 151,544 #VALUE! 8,154,962 100.8,154,962 4,328,476 100.4,328,476 2,159,502 80.884 1,746,692 9,490,443 100.9,490,443 6,061,760 15.812 958,485 6,317,491 100.6,317,491 2,850,922 100.2,850,922 3,646,528 100.3,646,528 6,762,651 100.6,762,651 3,959,087 100.3,959,087 4,224,289 100.4,224,289 6,516,392 100.6,516,392 151,544 100.151,544 City of Chula Vista 1915 Act Bonds 5,695,000 100.5,695,000 California Statewide Communities Development Authority 1915 Act Bonds 489,134 100.489,134 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT #VALUE! DIRECT AND OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations 291,180,000$ 5.516% 16,061,489$ San Diego County Pension Obligation Bonds 605,520,000 5.516 33,400,483 San Diego County Superintendent of Schools Obligations 11,800,000 5.516 650,888 Southwestern Community College District Certificates of Participation 890,000 51.349 457,006 Sweetwater Union High School District General Fund Obligations 43,565,000 61.283 26,697,939 Chula Vista City School District Certificates of Participation 158,000,000 87.351 138,014,580 City of Chula Vista Certificates of Participation 106,025,000 100%106,025,000 TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT 321,307,385$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency):29,315,000$ 99.141% 29,063,184$ TOTAL DIRECT DEBT 106,025,000$ TOTAL OVERLAPPING DEBT 989,573,009$ COMBINED TOTAL DEBT ############(2) (1) The percentage of the 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 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 2016-17 Assessed Valuation: Total Overlapping Tax and Assessment Debt…………………………2.89% Total Direct Debt ($106,025,000)……………...…….…………….0.41% Combined Total Debt…………....……...…………………………4.25% Ratios to Redevelopment Successor Agency Incremental Valuation ($1,354,453,404)): Total Overlapping Tax Increment Debt………………………………..2.15% Sweetwater Union High School District Community Facilities Districts No. 12 Sweetwater Union High School District Community Facilities Districts No. 18 Sweetwater Union High School District Community Facilities Districts No. 13 Sweetwater Union High School District Community Facilities Districts No. 14 Sweetwater Union High School District Community Facilities Districts No. 15 Sweetwater Union High School District Community Facilities Districts No. 16 Sweetwater Union High School District Community Facilities Districts No. 17 CITY OF CHULA VISTA Sweetwater Union High School District Community Facilities Districts No. 5 Sweetwater Union High School District Community Facilities Districts No. 6 Sweetwater Union High School District Community Facilities Districts No. 10 Sweetwater Union High School District Community Facilities Districts No. 11 Direct and Overlapping Debt June 30, 2017 Sweetwater Union High School District Community Facilities Districts No. 3 Sweetwater Union High School District Community Facilities Districts No. 4 Sweetwater Union High School District Community Facilities District No. 1 Sweetwater Union High School District Community Facilities District No. 2 2018-01-09 Agenda Packet Page237 2008200920102011201220132014201520162017Assessed valuation24,358,502,560$ 24,823,395,749$ 22,096,990,003$ 21,235,445,229$ 21,153,963,435$ 20,942,796,908$ 21,646,268,909$ 23,090,440,353$ 24,455,998,641$ 25,776,074,509$ Conversion percentage25%25%25%25%25%25%25%25%25%25%Adjusted assessed valuation6,089,625,640 6,205,848,937 5,524,247,501 5,308,861,307 5,288,490,859 5,235,699,227 5,411,567,227 5,772,610,088 6,113,999,660 6,444,018,627 Debt limit percentage15%15%15%15%15%15%15%15%15%15%Debt limit913,443,846 930,877,341 828,637,125 796,329,196 793,273,629 785,354,884 811,735,084 865,891,513 917,099,949 966,602,794 Total net debt applicable to limit:Pension obligation bonds8,820,000 7,000,000 4,980,000 2,655,000 - - - - - - Legal debt margin904,623,846$ 923,877,341$ 823,657,125$ 793,674,196$ 793,273,629$ 785,354,884$ 811,735,084$ 865,891,513$ 917,099,949$ 966,602,794$ Total debt applicable to the limit as a percentage of debt limit1.0%0.8%0.6%0.3%0.0%0.0%0.0%0.0%0.0%0.0%Source: City Finance Department County of San Diego Property Tax ServicesFiscal YearCITY OF CHULA VISTALegal Debt Margin InformationLast Ten Fiscal YearsThe Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provisionwas enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is nowassessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect aconversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect atthe time that the legal debt margin was enacted by the State of California for local governments located within the state. 2018-01-09 Agenda Packet Page238 Fiscal Year Ended Tax June 30 Increment Principal Interest Coverage 2008 13,793,329 1,090,000 1,965,103 4.51 2009 13,781,683 870,000 1,728,722 5.30 2010 13,884,637 905,000 2,070,381 4.67 2011 13,822,938 940,000 2,032,665 4.65 2012 10,931,615 980,000 1,992,565 3.68 2013 3,949,717 1,020,000 1,948,865 1.33 2014 6,144,015 1,065,000 1,901,703 2.07 2015 5,648,052 1,690,000 1,840,378 1.60 2016 5,042,979 1,765,000 1,765,765 1.43 2017 3,589,342 0 849,680 4.22 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Debt Service Tax Allocation Bonds CITY OF CHULA VISTA Pledged-Revenue Coverage Last Ten Fiscal Years 2018-01-09 Agenda Packet Page239 Pct. of S.D. Pct. ChangeAvg.% Bachelor'sPer CapitaTotalCounty from Previous Median Household % High School Degree or Pct. Below Unemployment Personal IncomePersonal YearPopulation 1Population 1Year 1Age 1Size 1Graduate 2Higher 2Poverty 2Rate 3(In Thousands) 4Income 42007231,5977.7%2.1%33.93.1079.6%25.4%9.1%5.4%9,437,814 42,0462008235,7677.8%1.8%33.83.1381.0%25.7%8.5%7.1%9,976,700 42,3162009239,3697.8%1.5%33.93.1680.0%25.5%11.5%11.0%9,264,738 38,7052010243,9167.9%1.9%33.83.2183.0%29.1%8.4%13.3% 10,429,312 42,7582011246,4757.9%1.0%33.63.2382.2%25.7%11.6%12.8% 10,535,629 42,7452012250,7748.0%1.7%33.73.2481.3%27.9%11.9%11.4% 10,263,266 40,9262013256,3668.0%2.2%33.83.2679.0%25.6%15.6%9.8% 10,452,158 40,7702014260,4168.1%1.6%33.93.2880.4%27.8%12.8%8.1% 11,011,936 42,2862015263,0288.1%1.0%34.03.2982.3%29.8%10.6%6.5% 11,639,304 44,2512016264,9118.1%0.7%34.23.2980.1%27.4%10.5%5.9% 12,302,415 46,308Source: Data compiled by SANDAG Service Bureau. 1 SANDAG, Current Estimates; 2 American Community Survey 1-Year Estimates; 3 California Employment Development Department; 4 SANDAG estimates based onU.S. Census Bureau, Census 2000, Census 2010, American Community Survey, and U.S. Bureau of Economic Analysis.Notes: Year-to-year variation for socio-economic data (education, poverty, unemployment) are the result of both actual change and sampling error. Dollar values are inflation-adjusted to 2015 dollars. Per capita PersonalIncome was estimated by using BEA Personal Income for the Region and was adjusted based on the Census 2000 and ACS jurisdiction proportions. Educational AttainmentCITY OF CHULA VISTADemographic and Economic StatisticsLast Ten Calendar Years2018-01-09 Agenda Packet Page240 Percent of Percent of Number of Total Number of Total Employer Employees Employment Employees Employment Sweetwater Union High School District 4,371 7.01% 4,598 9.17% Chula Vista Elementary School District 3,370 5.41% 2,669 5.32% Rohr Inc./Goodrich Aerospace 2,468 3.96% 1,903 3.79% Sharp Chula Vista Medical Center 2,131 3.42% 1,410 2.81% Southwestern Community College 1,411 2.26% 2,100 4.19% Wal-Mart 1,523 2.44% 950 1.94% City of Chula Vista 1,202 1.93% 1,481 2.95% Scripps Mercy Hospital Chula Vista 1,045 1.68% 1,032 2.06% Costco 685 1.10% 623 1.24% Aquatica 566 0.91%- - United Parcel Service - - 656 1.31% "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 2017 2008 CITY OF CHULA VISTA Principal Employers Current Year and Nine Years Ago 2018-01-09 Agenda Packet Page241 Function 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 General Government 302 272 273 258 269 282 312 288 205 210 Public safety 504 476 468 448 432 432 425 469 470 474 Public Works/Engr 188 181 175 155 159 164 161 161 241 228 Parks and Recreation 223 169 164 112 115 115 130 161 176 153 Library 196 189 73 41 76 82 77 88 70 77 Development Services 68 63 62 54 55 49 49 49 57 55 Total 1,481 1,350 1,215 1,068 1,106 1,124 1,154 1,216 1,219 1,197 Source: City Finance Department CITY OF CHULA VISTA Full-time and Part-time City Employees by Function Last Ten Fiscal Years 2018-01-09 Agenda Packet Page242 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Police:Citizen-initiated calls for service74,192 70,051 68,601 65,186 64,885 66,319 65,645 64,486 67,51265,672Fire:Number of emergency calls 14,548 14,983 11,490 11,319 12,863 12,950 14,787 18,328 19,612 19,612Inspectionsn/a 3,676 2,898 2,389 2,205 2,390 2,262 4,209 4,2074,207Public works:Street resurfacing/maintenance 177,507 108,745 84,276 99,978 55,398 121,428 38,08761,640 39,338 61,640(square feet)Parks and recreation:Number of recreation classes2,575 2,149 2,301 2,008 1,914 2,572 2,456 2,388 3,8593,124Number of facility rentals1,217 969 1,175 1,524 2,028 1,915 1,781 1,921 1,5731,482Library:Circulation1,265,720 1,160,139 985,157 952,847 982,688 992,005 954,071 839,616 706,594706,594Attendance1,296,245 820,243 605,979614,841 722,310 832,975 822,895 803,535 857,475857,475Sewer:New connections165 468 469 287 646 968 553 210 2211211Average daily sewage treatment16.8 16.5 16.2 16.3 15.9 15.7 15.5 15.5 15.420.9(millions of gallons)1 Excludes filling of potholes and crack sealing.Note: Data is not available for the fiscal years marked as n/a.Source: City of Chula VistaCITY OF CHULA VISTAOperating Indicatorsby FunctionLast Ten Fiscal YearsFiscal Year2018-01-09 Agenda Packet Page243 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Police:Stations1111111111Fire:Fire stations9999999999Public works:Streets (miles)416.9 421.0 429.5 429.5 429.5 429.5 433.9 433.9 433.9433.9Streetlights9,013 9,026 9,052 9,054 9,066 9,069 9,069 9069 91449282Traffic signals253 267 267 268 269 273 273 273 275275Parks and recreation:Parks (acreage) 1504.1 504.1 504.1 523.1 530.7530.7 527.7 557.2 557.2 708Recreation facilities12 11 11 11 11 11 11 11 1111Library:Libraries2 2 2 2 3 3 3 3 33Sewer:Sewer pipes (miles)493.8 496.5 505.0 505.0 505.0 505.0 511.3 2514.315 514.6514.6Storm drains (miles)244.7 245.3 248.9 248.9 249.0 249.0 255.2 3263.209 266.2 269.6Maximum daily treatment capacity20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9(millions of gallons)1Includes community, neighborhood, special purpose, mini, and urban parks.2Updated 2015 Sewer pipees (miles) per GASB 34 FY 20153Updated 2015 Storm Drain (miles) per GASB 34 FY 2015Source: City of Chula VistaCITY OF CHULA VISTACapital Asset Statisticsby FunctionLast Ten Fiscal YearsFiscal Year2018-01-09 Agenda Packet Page244        2018-01-09 Agenda Packet Page245 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING AMENDMENTS TO THE FISCAL YEAR 2016/17 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR WHEREAS, the City Charter states that at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by the affirmative votes of at least four members; and WHEREAS, staff has completed the final review for the fiscal year ending June 30, 2017 and is recommending several budget amendments; and WHEREAS, the proposed changes to the following funds: General Fund, Measure P, 08 TABS-SA, 06 TABs Series A-SA, 06 TABs Series B-SA, 2010 COP Refinance,result in a positive net impact to these funds; and WHEREAS, the proposed changes to the following funds: Trunk Sewer Capital Reserve, Sewer Service Revenue, Civic Center Ph2 PSB, result in no net fiscal impact; and WHEREAS, the proposed changes to the following funds: OV Rd Fee Recovery District, EL Greens II AD 94-1 Impt, Transportation Sales Tax Fund, Corp Yard Relocation, Long-Term Advances DSF-City, Sewer Income Fund, PFDIF-Civic Center Expansion, Sewer Facility Replacement, Library for Eastern Territory, 2016 COP Civic Center Ph2, 2016 TARBs, 2016 LRRB COP Refinance, result in a negative fiscal impact to these funds, these appropriations will be made from the respective available fund balance of each fund. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it amends the fiscal year 2016/17 budget and approves the following budget appropriations: 2018-01-09 Agenda Packet Page246 Resolution No. Page 2 Presented by Approved as to form by David Bilby, MSBA, CPFO Glen R. Googins Director of Finance/Treasurer City Attorney SUPPLIES & OTHER TRANSFERS TOTAL TOTAL SERVICES EXPENSES OUT EXPENSE REVENUE NET COST Non-Departmental - - 706,919 706,919$ 708,647$ (1,728)$ Measure P Fund - - - -$ 706,919$ (706,919)$ Transportation Sales Tax Fund 604 620 - 1,224$ -$ 1,224$ Sewer Income Fund 930 954 - 1,884$ -$ 1,884$ Trunk Sewer Capital Reserve 18,733 (18,733) - -$ -$ -$ Sewer Service Revenue (15,305) 15,305 - -$ -$ -$ Sewer Facility Replacement 5,351 5,487 - 10,838$ -$ 10,838$ Long-term Advances DSF-City - - 1,728 1,728$ -$ 1,728$ Civic Center Ph2 PSB - 192,220 (192,220) -$ -$ -$ 2010 COP Refinance - 4,387,059 (2,497,181) 1,889,878$ 1,890,902$ (1,024)$ 2016 COP Civic Center Ph2 - - - -$ (192,220)$ 192,220$ 2016 LRRB COP Refinance - - 1,890,902 1,890,902$ (2,497,181)$4,388,083$ OV Rd Fee Recovery District 428 - - 428$ -$ 428$ EL Greens II AD 94-1 Impt 527 541 - 1,068$ -$ 1,068$ PFDIF-Civic Center Expansion 2,205 2,261 - 4,466$ -$ 4,466$ Corp Yard Relocation 633 649 - 1,282$ -$ 1,282$ Library for Eastern Territroy 6,304 6,466 - 12,770$ -$ 12,770$ 06 TABs Series A-SA - - - -$ 126,907$ (126,907)$ 06 TABs Series B-SA -$ 104,496$ (104,496)$ 08 TABs-SA -$ 301,294$ (301,294)$ 2016 TARBs - (93,950) 532,697 438,747$ 174,843$ 263,904$ TOTAL OTHER FUNDS 20,410$ 4,498,879$442,845$ 4,962,134$ 1,324,607$ 3,637,527$ DEPARTMENT/FUND 2018-01-09 Agenda Packet Page247 City of Chula Vista Staff Report File#:17-0540, Item#: 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT OF $5,000 FROM SAN DIEGO GAS & ELECTRIC AND APPROPRIATING THE FUNDS TO THE MUNICIPAL FACILITIES ENERGY EFFICIENCY IMPROVEMENTS SECTION OF THE OTHER GRANTS FUND FOR THE CIVIC CENTER FAÇADE LED LIGHTING PROJECT (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY San Diego Gas and Electric is providing a $5,000 grant towards the City’s Civic Center façade LED lighting project at City Hall. Staff is asking Council to accept and appropriate the grant to the Municipal Facilities Energy Efficiency Improvements section of the Other Grants Fund (269590). ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15303 Class 3 (New Construction or Conversion of Small Structures) and/or Section 15301 Class 1 (Existing Facilities). Environmental Determination The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a CategoricalExemptionpursuanttoStateCEQAGuidelinesSection15303Class3(NewConstructionor Conversion of Small Structures) and/or Section 15301 Class 1 (Existing Facilities). Thus, no further environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Chula Vista has a proud history of being a municipal leader in sustainability. San Diego Gas & Electric is a strong city partner in energy efficiency. Their grant of $5,000 provides assistance to the City’s Civic Center façade LED lighting project on the City Hall Campus. The Civic Center façade LED lighting project will include programmable, color, LED up-lighting and directional lighting which can be changed in response to special events, holidays and security needs. This project may allow the City to reduce the amount of energy needed to light up the building exteriors and park areas of the City Hall campus while improving public safety. With this grant from SDG&E the City can provide the community with a well-lit civic center complex while also demonstrating energy efficiency and cost reductions. The City Hall campus is frequented by City of Chula Vista Printed on 1/4/2018Page 1 of 2 powered by Legistar™2018-01-09 Agenda Packet Page248 File#:17-0540, Item#: 5. demonstrating energy efficiency and cost reductions. The City Hall campus is frequented by surrounding residents and is a central park to the community. Staff will provide small signs to explain the demonstration and SDG&E support of the project. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This project meets the City’s goals for Connected Community, Strong and Secure Neighborhoods and Healthy Community by improving public safety and demonstrating energy efficiency in lighting, and leading by example. CURRENT YEAR FISCAL IMPACT These funds are to help offset the costs of the Civic Center façade LED lighting project. The proposed budget amendments have no net fiscal impact to the General Fund; these one-time expenditures will be offset by one-time revenues. ONGOING FISCAL IMPACT The proposed budget amendments are a one-time activity, there are no ongoing fiscal impacts associated with these budget amendments. ATTACHMENTS 1. Grant application. Staff Contact: Coleen Wisniewski, Sr. Conservation Specialist, Office of Sustainability, Economic Development Department City of Chula Vista Printed on 1/4/2018Page 2 of 2 powered by Legistar™2018-01-09 Agenda Packet Page249 RESOLUTION NO. 17-0540 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT OF $5,000 FROM SAN DIEGO GAS & ELECTRIC AND APPROPRIATING THE FUNDS TO THE MUNICIPAL FACILITIES ENERGY EFFICIENCY IMPROVEMENTS SECTION OF THE OTHER GRANTS FUND FOR THE CIVIC CENTER FAÇADE LED LIGHTING PROJECT WHEREAS,Chula Vista has a proud history of being a municipal leader in sustainability; and WHEREAS,San Diego Gas & Electric is a strong city partner in energy efficiency; and WHEREAS,San Diego Gas & Electric’s grant of $5,000 provides assistance to the City’s Civic Center Façade LED lighting project on the City Hall Campus; and WHEREAS,the Civic Center Façade lighting project will include programmable, color, LED up-lighting and directional lighting which can be changed in response to special events, holidays and security needs; and WHEREAS,this project may allow the City to reduce the amount of energy needed to light up the building exteriors and park areas of the City Hall campus while improving public safety; and WHEREAS, this project meets the City’s goals for Connected Community, Strong and Secure Neighborhoods and Healthy Community by improving public safety, demonstrating energy efficiency in lighting and leading by example; and WHEREAS, the Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15303 Class 3 (New Construction or Conversion of Small Structures) and/or Section 15301 Class 1 (Existing Facilities) and no further environmental review is required. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it accepts the $5,000 grant from San Diego Gas & Electric and appropriates those grant funds to the Municipal Facilities Energy Efficiency Improvements section of the Other Grants Fund (269590) for use on the Civic Center Façade LED Lighting Project. Presented by Approved as to form by Eric Crockett Glen R. Googins Director of Economic Development City Attorney 2018-01-09 Agenda Packet Page250 Legal name registered with IRS (if different from organization name): City of Chula Vista A Chartered City Federal IRS non-profit tax identification number: 956000690 Address: 276 Fourth Ave City: Chula Vista State: CA Organization's primary mission/focus area: -Government & Public Administration SDG&E - Grant Application for Project or Program Welcome! Before getting started, • If you are submitting a grant request on behalf of a chapter, division or location of your organization, provide organization name in the format examples below (program, project or event name is captured elsewhere in the application): ABC Foundation, Chapter Name ABC University, College of XYZ ABC Foundation, Administrative Office • Ensure you have the following paperwork ready in electronic format to upload with this application: Organization Board Member List Organization Annual Budget Annual Report (if available) • Please add Gifts Administrator (mail@grantapplication.com) to your friendly/safe senders list to ensure email messages from San Diego Gas and Electric are not filtered out as junk email. • Familiarize yourself with the technical Q&A questions (located above) on how to save your work in order to return to at a later time and submitting applications. Organization Information Organization Name, Address and Tax Identification: Organization name: (If application is on behalf of local chapter, division or location, please follow name formatting as shown previously on page 1) City of Chula Vista - Office of Sustainability Other common names or acronyms of organization: Is the organization a 501(c)(3) charitable non-profit organization? (Click if yes) No If your organization is not a 501(c)(3) registered non-profit organization, please provide non-profit category organization falls within: local government Zip/Postal code: 91910 Organization primary phone number: 6194093893 Organization target community: Local/Regional Further describe mission of organization: (Limited to 75 words or less) Page 1 of 4SDG&E - Grant Application for Project or Program 11/21/2017https://www.grantrequest.com/printerfriendly.aspx?sid=251&AID=123823 2018-01-09 Agenda Packet Page251 Organization website URL: www.chulavistaca.gov/CLEAN Organization's current year budget: 3000000.00 Number of organization employees: 20 First Name: Dennis First Name: Amount of request to support program/project: 5000.00 Chula Vista has a proud history of being a municipal leader in sustainability. The City Council has long recognized that the City’s environmental efforts also create numerous community co-benefits such as utility cost savings, less congested streets, healthier and more connected neighborhoods, local economic development, and an overall higher quality of life. Additional Organization Information: Organization general e-mail address: environmentalservices@chulavistaca.gov Number of organization volunteers: 800 Contact Information Contact Information of Executive Director or Chief Officer of Organization: Title: Chief Sustainability Officer Last Name Gakunga EMail Address: dgakunga@chulavistaca.gov Phone number with area code: 6194765355 Primary Contact Person for this Grant Request (if same as above, skip this section): E-mail address: Title: Last Name Phone number with area code: Proposal Narrative Purpose/Need (specify program or project title) (Limited to 10 words or less) Requesting assistance with community demonstration of lighting/energy efficiency Program/project budget: 35000.00 Time table for this program or project: Page 2 of 4SDG&E - Grant Application for Project or Program 11/21/2017https://www.grantrequest.com/printerfriendly.aspx?sid=251&AID=123823 2018-01-09 Agenda Packet Page252 Grant would cover period beginning: 11/20/2017 Program/project primarily benefits following gender: (Choose category which best describes end recipient the grant would primarily benefit) Both Grant would cover period ending: 12/31/2018 Proposal Narrative Further describe program/project for which you are requesting funding for: (Response is limited to 200 words or less) We are working on a energy efficiency demonstration of holiday lighting for the Civic Center campus - demonstrating the use of permanent LED programmable up lighting in conjunction with Starlight Parade and the community holiday fair in the park. This Civic Center Campus is designated as a community park in this disadvantaged community area of Chula Vista. Describe the need, objectives and any relevant research that supports the effort: (Limited to 200 words or less) This project will make permanent the lighting on the Civic Center campus park area and eliminate the need for temporary lights, enhancing public health and safety. The City is providing $30,000 and is in need of $5,000 more to complete the project. Describe or list benefits to the community that may result from support of the proposed grant: (Limited to 200 words or less) The Community expects the City to "dress" the city buildings with holiday trimmings adding to the holiday spirit of the Starlight Parade and holiday festivities in the park. With SDGE's assistance we can provide the expected "dressing" while demonstrating energy efficiency and cost reductions in this disadvantaged community area of Chula Vista. This campus is frequented by the surrounding residents and is central to the community. The library across the street is a beacon to the residents from this disadvantaged region. Staff will be able to provide signage that explains the demonstration and SDGE support of the project. Population Served by Grant: Program funding would support the following areas: (Choose category which best describes end recipient the grant would primarily benefit) Civic & Community-Community Issues/Events Program/project primarily benefits following age group: (Choose category which best describes end recipient the grant would primarily benefit) General Population (All ages) Program/project primarily serves this audience (choose up to 3): (Choose category which best describes end recipient the grant would primarily benefit) Minorities in General/Multi Cultural Hispanic General Population/All (not specified by ethnicity) Describe the geographic areas that will be served by the proposed grant support: (Provide county and state information only) City of Chula Vista, County of San Diego, California 91910 Program or Project Sustainability: Describe your strategy for expanding financial support of the program or project to avoid over-dependence on single funding sources: (Limited to 200 words or less) This will be a one time funding requirement for this project as the City will be providing $30,000 through other funding sources. Operations and maintenance will be ongoing responsibility of the City. This will make permanent, long term improvements to the Civic Center Campus and park area. Communication strategy to gain awareness of your program or project in the community. Enter "none" in this field if not applicable. (Provide overview of your plan and if San Diego Gas & Electric could receive recognition and visibility for the grant, e.g., newsletters, media releases, event recognition, web site acknowledgement, etc. If ads, logos or banners are included, please provide design specifications and due dates) We will be creating small "realtor type signs" to be place in the landscaped areas of the park, under the lights, explaining the energy efficiency benefits of the project and providing recognition for SDGE. We will work with SDGE staff on the design and sizing of these signs as well as any press releases, newsletters, and parade narrative recognition. San Diego Gas and Electric employees involved with your organization or whom you have been in contact with regarding this request: Vanessa Mapula Garcia Is the organization willing to provide a year-end report on how grant funds were spent? (Check box if response is yes) Yes Page 3 of 4SDG&E - Grant Application for Project or Program 11/21/2017https://www.grantrequest.com/printerfriendly.aspx?sid=251&AID=123823 2018-01-09 Agenda Packet Page253 Attachments Title File Name Organization Annual Budget MX- 3070N_20171013_133720.pdf Board of Directors Information Chula Vista City Council Members.docx Files attached to this form may be deleted 120 days after submission. Page 4 of 4SDG&E - Grant Application for Project or Program 11/21/2017https://www.grantrequest.com/printerfriendly.aspx?sid=251&AID=123823 2018-01-09 Agenda Packet Page254 City of Chula Vista Staff Report File#:18-0005, Item#: 6. SELECTION OF A DATE AND TIME FOR AN OPEN MEETING TO CONDUCT INTERVIEWS OF ALL APPLICANTS WHO SUBMITTED A QUALIFIED APPLICATION DURING THE SPECIFIED APPLICATION PERIOD TO FILL ONE VACANCY ON THE GROWTH MANAGEMENT OVERSIGHT COMMISSION (ENVIRONMENTAL REPRESENTATIVE) (In accordance with Chula Vista Municipal Code section 2.53.040 (D), since four or fewer qualified applications were received, all applicants will be invited to interview.) RECOMMENDED ACTION Council select a date and time for an open meeting to conduct interviews of all applicants for the Growth Management Oversight Commission who submitted a qualified application during the specified application period. . ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because the activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. BACKGROUND A resignation from the Growth Management Oversight Commission has resulted in one vacancy for an Environmental Representative. Nominations for interviews will not be necessary since fewer than five applications were received within the past two years; therefore all applicants will be invited to interview. The qualified applications received are included as Attachment 1. Pursuant to the appointment process, the Council shall independently review these applications. CURRENT VACANCY Growth Management Oversight Commission - 1 vacancy The vacancy is for the following seat: City of Chula Vista Printed on 1/4/2018Page 1 of 2 powered by Legistar™2018-01-09 Agenda Packet Page255 File#:18-0005, Item#: 6. - Environmental Representative - to replace Eric Mosolgo Per CVMC 2.40.040: “The voting members shall be appointed as follows: 1. Four of the members shall be appointed from a classification consisting of residents of the City’s four residential quadrants: (a) North of L Street/Telegraph Canyon Road/Otay Lakes Road and west of La Media Road; (b) North of L Street/Telegraph Canyon Road/Otay Lakes Road and east of La Media Road; (c) South of L Street/Telegraph Canyon Road/Otay Lakes Road and west of La Media Road; and (d) South of L Street/Telegraph Canyon Road/Otay Lakes Road and east of La Media Road. Those members shall reside in their respective areas at the time of their appointment and shall reside in their respective areas for the duration of their membership on the Commission. 2. One member shall represent local educational interests. 3. One member shall represent development interests. 4. One member shall represent environmental interests. 5. One member shall represent business interests. 6. One member shall be a member of the Planning Commission. (Ord. 3211 § 14, 2011; Ord. 2447 § 1, 1991; Ord. 2129 § 1, 1985).” APPLICANTS The individuals from whom applications were received within the past two years are listed below: - Sassan Rahimzadeh - Mary Ann Saponara - Andrew Strong Attachments 1. Applications Packet City of Chula Vista Printed on 1/4/2018Page 2 of 2 powered by Legistar™2018-01-09 Agenda Packet Page256 Growth Management Oversight Commission Current Vacancy: (1) Environmental Representative Last Name First Name Resume App Date Environmental Interests Currently Serving On Preference Notes Saponara Mary Ann X 11/21/2017 X 1 Strong Andrew X 1/3/2017 X 1 Rahimzadeh Sassan X 12/18/2017 X 1 2018-01-09 Agenda Packet Page257 2018-01-09 Agenda Packet Page258 2018-01-09 Agenda Packet Page259 2018-01-09 Agenda Packet Page260 2018-01-09 Agenda Packet Page261 Leah Larrarte From: Webmaster Sent: Tuesday, November 21, 2017 9:23 PM To:CityClerk; Adrianna Hernandez Subject: City of Chula Vista: Growth Management Oversight Commission Application received A new entry to a form/survey has been submitted. Form Name: Growth Management Oversight Commission Application Date&Time:11/21/2017 9:22 PM Response#: 2 Submitter ID:34766 IP address: 107.77.230.35 Time to complete: 38 min.,31 sec. Survey Details Page 1 Application for membership on the Growth Management Oversight Commission 1. Prefix o) Mrs. 2. First and Last Name Mary Ann Saponara 3. Email 4. Residence Address S. City Chula Vista 6. ZIP Code 91910 7. Primary Phone 8. Secondary Phone Not answered 1 2018-01-09 Agenda Packet Page262 9. Are you registered to vote in Chula Vista? o)Yes 10. Do you live within the City limits of Chula Vista? o)Yes 11. How Long? since December 1975 12. Employer retired principal,San Ysidro School District 13. Occupation educator 14. Please select one or more of the seats below that you wish to be considered for: (select as many as applicable) x] Local Educational Interests Representative x] Environmental Interests Representative 15. If you selected one of the specific interests above(Local Educational, Development,Environmental,and/or Business Interests),please describe your interest,experience or special knowledge that you would bring to the selected seat(s).(250 words or less) Having been an educator,grant writer,docent for both the Tijuana Estuary Research Reserve,and the Living Coast Discovery Center, I feel that I have the love for preserving nature's gifts for all generational residents. I have worked with great environmental educators including Dr. Mike McCoy,Tina Mathias,Southwestern College's photography instructor Todd Stands and a very experienced raptor educator/rehabilitator, Mrs. Nancy Conney,directress of Skyhunters in Alpine. I am passionate about nature and preserving what we have left because only 10%of the Pacific Flyway exists. I am very up beat! I have a very sharp learning curve. I enjoy speaking with young and old to take care of our earth. My son, Lt. Ernie Saponara, U.S.Coast Guard,studied at the Living Coast Discovery Center. He focused upon going to the Coast Guard Academy in New London,CT. I have been giving back because of the great teachers he has had over the years. For a while, I was a recruiter for the academy. 16. o) I understand if I am appointed to a seat that represents my residential quadrant, I must reside in my respective area at the time of my appointment and for the duration of my membership on the Commission to remain eligible. 17. Have you previously served,or do you currently serve,on a Chula Vista Board,Committee or Commission o) No 18. If yes,which one(s)and for what period of time? Not answered 19. Are you,or have you been,involved in any local,civic,service or community groups? o)Yes 20. If yes,please list them Living Coast Discovery Center's docent program,i was a docent for the Tijuana Estuary, i was on the board of directors for Friends of the Estuary, I just rejoined Friends as a member, I am a member of the Chula Vista Elks Club supporting various projects, I wrote an article about their classic cars exhibition June 2016, 1 donate to schools,community groups for fund raising 2 2018-01-09 Agenda Packet Page263 events expecially the Living Coast's fund raisers with my Indian jewelry etc.writer promoting community events for Southwestern College's newspaper,The Sun, I am also a photo journalist for the newspaper 21. What do you hope to accomplish in the role of a Growth Management Oversight Commissioner?(250 words or less) I want to protect the environment! I want young and old alike to feel safe enjoying nature. I want to visit schools and share my love for nature. I want to pursue opportunities for outreach projects which the Living Coast and the Federal Fish and Wildlife Agency have. I want the City of Chula Vista to keep on top of preserving space for parks. Keep them clean without graffiti etc. 22. 1 understand that to be considered,I must submit a resume along with this application. Resume Nov 21, 2017.docx 23. The City understands meeting schedules and individual's availability may change.We ask that you consider the meeting schedule when submitting an application. o) I have reviewed the Growth Management Oversight Commission regular meeting date,time and frequency. 24. 1 understand if I am selected to serve on this board or commission I will need to disclose certain economic interests(Form 700)in accordance with the City of Chula Vista's Conflict of Interest Code. o) I have reviewed the City of Chula Vista's Conflict of Interest Code. 25. o) I am familiar with the responsibilities of the Growth Management Oversight Commission. I attest that the information I have provided is accurate and true. Thank you, City of Chula Vista This is an automated message generated by the Vision Content Management System`.Please do not reply directly to this email. 3 2018-01-09 Agenda Packet Page264 Mrs. Mary Ann Saponara Chula Vista, CA 91910 Educational Background BA degree—1968—Major-History and Political Science, Minor-Sociology-College of Mount Saint Vincent, Riverdale, New York MS degree—1969---MS in teaching language minority culturally diverse children—Yeshiva University, Ferkauf Graduate School Fifth Avenue and 12th Street, Manhattan, New York I student taught in Spanish Harlem—More Effective School # 146—106th Street and First Avenue, New York City—I won a fellowship representing the Italian community Credentials: New York State-K-6-Life- California-Life-K-8, Reading Specialist, English as a Second Language Specialist, studied two years at the San Diego Museum of Art—wrote a book featuring specific artists whose works are part of the museum’s gallery—k-8 for English Language Learners Teaching Experience PS #23—Yonkers, New York-low-socio economic community—grade 3-students came from all over the world—English Language Learners San Ysidro Elementary School District—K-8, 23-years as a teacher- visual arts mentor teacher, taught 8th grade environmental studies 15-years as an administrator/Vice Principal-San Ysidro Middle School, Ocean View Hills K-8, Principal-Smythe Elementary including being the district’s grant writer Sweetwater High School District—13-years—English Language Learners--Adult Ed teacher- evenings (following subjects were taught during summer school--Reading teacher, 9th grade writing/reading, 10th grade Western/Eastern Civilizations, 12th U.S. Government) Community Service Activities Chula Vista Elks Club Member—I help with fund raisers, journalist/photo journalist for June 2016 classic car show Docent for Tijuana Estuary Research Reserve – 2008-2011-gave bird walks Docent for Living Coast Discovery Center— 2008-2017--bird walks, raptor row tours, donate hand-made Indian jewelry for fund raisers I donate to schools, churches, organizations which have fund raisers-hand-made Indian jewelry, Navajo hand-made animals, lambs, bison, turtles, dinosaurs, ponies, rabbits, dogs, elephants, etc. 2018-01-09 Agenda Packet Page265 Recruiter for the Coast Guard Academy Southwestern College’s newspaper, The Sun. I write feature stories about Julian, the Cuyamacas, Cabrillo’s ship, the San Salvador, Leonardo da Vinci’s hidden master piece, the Battle of Anghiari /Toscana-behind the Gorgio Vasari’s master piece in the Palaccio Vecchio in Florence, Italy Exhibitions at the Museum of Photographic Arts, San Diego Museum of Art References: Dr. Mike McCoy—Imperial Beach Pet Hospital-I was a volunteer at the Tijuana Estuary Dr. McCoy is responsible for the bike path which extends from Coronado into Chula Vista past the Living Coast Discovery Center Home phone: Imperial Beach Pet Hospital-619-424-3961 Fridays-2:00-5:00pm Tina Mathias—Living Coast Discovery Center Volunteer Coordinator- Todd Stands-Southwestern College’s photography instructor- Cell: Mrs. Nancy Conney- -Skyhunters directress-raptor/rehabilitation educator Cell: 2018-01-09 Agenda Packet Page266 2018-01-09 Agenda Packet Page267 2018-01-09 Agenda Packet Page268 2018-01-09 Agenda Packet Page269 Please describe your interest, experience or special knowledge that you would bring to the selected seat(s). (250 words or less) I believe it is vital for our community to continue to have smart growth while ensuring we protect our natural environment. Given our regions housing needs, it is vital for us to develop smart communities with the appropriate amount of residential, commercial, recreational and environmentally protected lands. It is important that we work to create the right balance while including the necessary infrastructure to ensure our communities are safe and have a high quality of life. I believe my work experience will provide a unique and important perspective in this roll. I have worked for the County of San Diego for the past 10 years. I currently serve as the Chief Administrative Officer’s Chief of Staff. In this capacity, I work closely with the County’s Executive Team to implement policies directed by the Board of Supervisors. Prior to my current role as Chief of Staff, I served as Chief of Departmental Operations for the Department of Planning & Development Services. In this role, I oversaw the management of department administrative functions in the areas of budget and fiscal management, contract management, information technology and geographic information systems. I worked closely with our department division Chiefs to support Building, Planning and Land Development efforts; this gave me valuable knowledge of the land development process. I believe my experience will allow me to bring a unique regional perspective to this seat. 2018-01-09 Agenda Packet Page270 2018-01-09 Agenda Packet Page271 2018-01-09 Agenda Packet Page272