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Agenda Packet 2018_05_22
May 22, 2018City Council Agenda PRESENTATION OF A PROCLAMATION TO AQUATICS SUPERVISOR KARINA CRAIG AND FIRE CAPTAIN MIKE FILSON PROCLAIMING MAY 2018 AS DROWNING PREVENTION MONTH IN THE CITY OF CHULA VISTA 18-0208B.18-0208 PRESENTATION OF A PROCLAMATION TO THE SHARP CHULA VISTA BARNHART CANCER CENTER PROCLAIMING SUNDAY, JUNE 3, 2018 AS NATIONAL CANCER SURVIVORS DAY IN THE CITY OF CHULA VISTA 18-0214C.18-0214 CONSENT CALENDAR (Items 1 - 6) 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. APPROVAL OF MINUTES of February 6 and 13, 2018.18-02071.18-0207 Council approve the minutes. Staff Recommendation: WRITTEN COMMUNICATIONS Letters of resignation from Ruth Serrato, International Friendship Commission and Tony Stewart, Veteran’s Advisory Commission 18-02182.18-0218 Council accept the resignations. Staff Recommendation: ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS FOR THE OTAY RANCH PORTION OF VILLAGE FOUR (SECOND READING AND ADOPTION) 18-02193.18-0219 Development Services Department Department: The proposed Project may have a significant effect on the environment . Therefore, an Environmental Impact Report has been prepared . Environmental Notice: Council adopt the ordinance. Staff Recommendation: Page 2 City of Chula Vista Printed on 5/17/2018 2 May 22, 2018City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FOURTH AMENDMENT TO A MEMORANDUM OF UNDERSTANDING WITH THE SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) REGARDING AN ENVIRONMENTAL DOCUMENT FOR GRADE SEPARATIONS AND STATIONS TO THE LIGHT RAIL TROLLEY’S BLUE LINE 18-00854.18-0085 Engineering Department Department: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b) (3); Section 15301 (Existing Facilities); and Section 15303 (New Construction or Conversion of Small Structures). Environmental Notice: Council adopt the resolution. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN APPLICATION FOR GRANT FUNDS FROM THE COUNTY OF SAN DIEGO NEIGHBORHOOD REINVESTMENT PROGRAM FOR THE BAYSHORE BIKEWAY CANVASES OF CREATIVITY MURAL PROJECT 18-01965.18-0196 Economic Development Department Department: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Staff Recommendation: Page 3 City of Chula Vista Printed on 5/17/2018 3 May 22, 2018City Council Agenda A.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF COUNCIL POLICY NO. 220.01, THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES; AMENDING THE EXISTING POLICY; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER B.INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2018 18-02016.18-0201 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 adopt the resolution and accept the report. 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 4 City of Chula Vista Printed on 5/17/2018 4 May 22, 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. PRESENTATION OF THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2018/2019 RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2018/2019 FOR EACH AGENCY AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME 18-02037.18-0203 Finance Department Department: The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that filing of the quarterly financial status report is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. Environmental Notice: Council/Successor Agency/Housing Authority hear the presentation, provide comments, and proposed changes. If Council is prepared to approve the budget, with or without modifications, as the City Council Proposed Budget, the City Council /Successor Agency /Housing Authority may adopt the resolution and set the time and place for a public hearing for final consideration and adoption of the budget. Staff Recommendation: CITY MANAGER’S REPORTS REPORT REGARDING STATUS OF EXCLUSIVE NEGOTIATING AGREEMENT (ENA) WITH THE UNIVERSITY OF SAINT KATHERINE AND REQUEST FOR INPUT FROM CITY COUNCIL ON CITY MANGER’S PENDING NINETY (90) DAY EXTENSION OF THE ENA 18-02208.18-0220 Page 5 City of Chula Vista Printed on 5/17/2018 5 May 22, 2018City Council Agenda MAYOR’S REPORTS CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING THE TAX FAIRNESS, TRANSPARENCY AND ACCOUNTABILITY ACT OF 2018 18-02239.18-0223 CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING NEW OR EXPANDED OFFSHORE OIL AND GAS LEASES IN THE PACIFIC OCEAN AND SUPPORTING RELATED MEASURES TO PROHIBIT THE DISCHARGE OF POLLUTANTS INTO THE OCEAN 18-022410.18-0224 COUNCILMEMBERS’ COMMENTS CITY ATTORNEY'S REPORTS ADJOURNMENT to the Regular City Council Meeting on June 12, 2018, at 5:00 p.m., in the Council Chambers. 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 6 City of Chula Vista Printed on 5/17/2018 6 City of Chula Vista Staff Report File#:18-0133, Item#: A. PRESENTATION OF THE THIS IS CHULA IMAGE ADVERTISING CAMPAIGN PHASE II BY MARKETING AND COMMUNICATIONS MANAGER ANNE STEINBERGER AND NV5 ACCOUNT MANAGER GABRIELA DOW City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 7 City of Chula Vista Staff Report File#:18-0208, Item#: B. PRESENTATION OF A PROCLAMATION TO AQUATICS SUPERVISOR KARINA CRAIG AND FIRE CAPTAIN MIKE FILSON PROCLAIMING MAY 2018 AS DROWNING PREVENTION MONTH IN THE CITY OF CHULA VISTA City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 8 City of Chula Vista Staff Report File#:18-0214, Item#: C. PRESENTATION OF A PROCLAMATION TO THE SHARP CHULA VISTA BARNHART CANCER CENTER PROCLAIMING SUNDAY,JUNE 3,2018 AS NATIONAL CANCER SURVIVORS DAY IN THE CITY OF CHULA VISTA City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 9 City of Chula Vista Staff Report File#:18-0207, Item#: 1. APPROVAL OF MINUTES of February 6 and 13, 2018. RECOMMENDED ACTION Council approve the minutes. City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 10 City of Chula Vista Meeting Minutes - Draft 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 Teleconferencing Location: Cambria Pines Lodge 2905 Burton Drive Rm.# Available at Front Desk Cambria, CA 93428 Tuesday, February 6, 2018 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 5:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present:Councilmember Aguilar, Deputy Mayor Diaz, Councilmember McCann, Councilmember Padilla and Mayor Casillas Salas City Clerk Bigelow announced that Councilmember Padilla was participating via teleconference and videoconference from the following location: Cambria Pines Lodge, 2905 Burton Drive, Cambria, CA 93428. All votes were taken by roll call. Councilmember Padilla stated he complied with all requirements of the Brown Act, including posting the agenda and assuring public accessibility to the location. Also Present: City Manager Halbert, City Attorney Googins, City Clerk Bigelow, and Deputy City Clerk Larrarte PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Councilmember McCann led the Pledge of Allegiance. Mayor Salas requested a moment of silence in honor of Aura Mancilla and Patricia Garcia. SPECIAL ORDERS OF THE DAY A.17-0557 PRESENTATION OF A PROCLAMATION TO THE CHULA VISTA ANIMAL CARE FACILITY PROCLAIMING FEBRUARY 2018 AS SPAY/NEUTER AWARENESS MONTH IN THE CITY OF CHULA VISTA Mayor Casillas Salas read the proclamation and Deputy Mayor Diaz presented it to Animal Care Facility Administrator Mills, who also spoke regarding the item. B.18-0034 RECOGNITION OF THE CHULA VISTA FIRE DEPARTMENT FOR ITS MUTUAL AID EFFORTS IN THE STATE OF CALIFORNIA IN 2017 Fire Chief Geering and Battalion Chief Peters gave a presentation on the item. Page 1City of Chula Vista 11 February 6, 2018City Council Meeting Minutes - Draft CONSENT CALENDAR (Items 1 - 3) 1.18-0033 WRITTEN COMMUNICATION Memorandum from Councilmember Diaz requesting an excused absence from the January 16, 2018 council meeting. Recommended Action: Council excuse the absence. 2.18-0055 APPROVAL OF MINUTES of October 17, 2017. Recommended Action: Council approve the minutes. 3.17-0559 A.RESOLUTION NO. 2018-019 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING LAKEFEST 2018, CHULA VISTA 4TH FEST 2018, HARBORFEST 2018, AND THE 2018 STARLIGHT PARADE AS CITY-SPONSORED EVENTS FOR FISCAL YEAR 2018-19 B.RESOLUTION NO. 2018-020 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE CITY’S FILING OF AN APPLICATION FOR A $20,000 COMMUNITY ENHANCEMENT GRANT FROM THE COUNTY OF SAN DIEGO; APPROVING A RESOLUTION FOR THE GRANT APPLICATION REQUIRED BY THE COUNTY; AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO AND RELATED DOCUMENTS FOR THE GRANT, SHOULD THE CITY BE AWARDED GRANT FUNDING; AND APPROPRIATING FUNDS ACCORDINGLY (4/5 VOTE REQUIRED) Recommended Action: Council adopt the resolutions. Approval of the Consent Calendar A motion was made by Councilmember 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 Steven Pavka, Chula Vista resident, expressed concern regarding issues related to homelessness. Page 2City of Chula Vista 12 February 6, 2018City Council Meeting Minutes - Draft ACTION ITEMS 4.17-0502 ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHULA VISTA MUNICIPAL CODE SECTION 5.19 TO PERMIT, LICENSE, AND FULLY REGULATE COMMERCIAL CANNABIS ACTIVITY WITHIN THE CITY OF CHULA VISTA (FIRST READING) Deputy City Manager Bacon, Deputy City Attorney McClurg, and Development Services Director Broughton gave a presentation on the item. Staff responded to questions of the Council. The following members of the public spoke in support of the proposed ordinance and offered suggested modifications: -Joe Casey, San Diego resident -Jessica McElfresh, Solana Beach resident, representing McElfresh Law, Inc. -Sapphire Blackwood, representing the Association of Cannabis Professionals -Michelle Luna Reynoso, representing Coast Drive Management -Ken Sobel, Chula Vista resident -Jacqueline Marquez, South Bay resident -Daniel Green, Chula Vista resident -Sean McDermott -Cynara Velazquez, San Diego resident, representing Citizens for Public Safety -Jeff Taylor -Gina Austin, San Diego resident -Dallin Young, San Diego resident, representing the Association of Cannabis Professionals Manny Biezuwski, San Diego resident, representing Coast Drive Management, submitted written documentation in support of the proposed ordinance with amendments and declined to speak. Pattie Harris, San Diego resident, spoke in support of the proposed ordinance. The following members of the public spoke in opposition to the proposed ordinance and offered suggested modifications: -Theresa Acerro, Chula Vista resident -Judi Strang, Chula Vista resident The following members of the public spoke in opposition to the proposed ordinance: -Carol Green, Chula Vista resident -Kathy Lippitt, Poway resident -Steven Pavka, Chula Vista resident Janice Draper, Chula Vista resident, representing My Antidote Co ., submitted a request to speak but was not present when her name was called. Council discussion ensued. Mayor Casillas Salas spoke in support of the following: -Considering relaxing the professional experience requirements of applicants -Not requiring applicants to be in control of a property but at least be in negotiations in Phase 1 of the application process Councilmember Aguilar spoke in support of Mayor Casillas Salas's recommendations. Page 3City of Chula Vista 13 February 6, 2018City Council Meeting Minutes - Draft Councilmember Padilla spoke in support of the following: -Disqualifying applicants based on past convictions, regardless of the length of time that had passed -Staff providing additional options for consideration regarding identifying a location in Phase 1 of the application process -Requiring strict experience standards -Clarifying the ordinance regarding greenhouse operations to indicate they were equivalent to indoor cultivation -Not initially allowing medical cannabis sales and potentially consider amending the ordinance in the future Deputy Mayor Diaz spoke in support of the following: -Not requiring the identification of a location in Phase 1 of the application process -Maintaining the proposed definition of youth-oriented businesses -Staff considering relaxing the professional experience requirements of applicants -Funding a criminal prosecution unit in the City Attorney Office using cannabis tax proceeds -Maintaining the requirement that applicants have $300,000 in liquid assets -Not allowing medical cannabis sales -Establishing a limit on cultivation manufacturing Councilmember Aguilar supported considering applicants with convictions after a specified length of time had passed. Councilmember McCann expressed concern regarding the total number of licenses and spoke in support of considering reducing the number of allowed storefronts. Mayor Casillas Salas spoke in support of allowing an additional storefront on Third Avenue. There was a consensus of the Council to refer the item to staff to bring a revised ordinance for first reading at the meeting of February 20, 2018. CITY MANAGER’S REPORTS There were none. MAYOR’S REPORTS At the request of Mayor Casillas Salas, there was consensus of the Council to add an item to the agenda of February 13, 2018 to consider City endorsement of the Big 24-Hour Give Back fundraising event. Mayor Casillas Salas thanked American Medical Response for sponsoring a flu prevention event at the Norman Park Center. She spoke regarding the opening of the Southwestern College Wellness and Aquatic Complex. COUNCILMEMBERS’ COMMENTS Councilmember Aguilar spoke regarding the opening of the Southwestern College Wellness and Aquatic Complex. Councilmember McCann spoke regarding the Southwestern College Wellness and Aquatic Complex, the installation of cost-efficient irrigation at Discovery Park, and the Taste of Eastlake event. Page 4City of Chula Vista 14 February 6, 2018City Council Meeting Minutes - Draft CITY ATTORNEY'S REPORTS There were none. City Attorney Googins announced that Item 5 would be continued to the meeting of February 13, 2018. 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. 5.18-0054 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(1) Name of case:Juan Abenojar and Salome Rincon v. City of Chula Vista, San Diego Superior Court, Case No. 37-2016-00024897-CU-PO-CTL Item 5 was not discussed and was continued to the meeting of February 13, 2018. ADJOURNMENT At 8:39 p.m., Mayor Casillas Salas adjourned the meeting to the Regular City Council Meeting on February 13, 2018, at 5:00 p.m., in the Council Chambers. _______________________________ Kerry K. Bigelow, MMC, City Clerk Page 5City of Chula Vista 15 City of Chula Vista Meeting Minutes - Draft 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 Tuesday, February 13, 2018 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 5:03 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present:Councilmember Aguilar, Deputy Mayor Diaz, Councilmember Padilla and Mayor Casillas Salas Absent:Councilmember McCann Also Present: City Manager Halbert, City Attorney Googins, City Clerk Bigelow, and Deputy City Clerk Kansas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Deputy Mayor Diaz led the Pledge of Allegiance. SPECIAL ORDERS OF THE DAY A.18-0020 EMPLOYEE SERVICE YEAR RECOGNITION HONORING STAFF WITH MILESTONE SERVICE ANNIVERSARIES City Manager Halbert recognized employees with milestone service anniversaries. B.18-0049 RECOGNITION OF RANCHO DEL REY MIDDLE SCHOOL CHEERLEADING TEAM FOR PLACING 3RD AT THE JAMZ REGIONAL COMPETITION AND QUALIFYING FOR THE NATIONAL COMPETITION IN LAS VEGAS Mayor Casillas Salas read the names of the cheerleaders and Councilmember Padilla presented them with Chula Vista City of Champion medals. CONSENT CALENDAR (Items 1 - 3) Item 2 was removed from the Consent Calendar at the request of Councilmember Aguilar. 1.18-0057 APPROVAL OF MINUTES of October 26, and November 2 and 7, 2017. Recommended Action: Council approve the minutes. Item 2 was removed from the Consent Calendar. Page 1City of Chula Vista 16 February 13, 2018City Council Meeting Minutes - Draft 3.18-0056 RESOLUTION NO. 2018-022 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUPPORTING THE DEVELOPMENT OF A PARTNERSHIP AGREEMENT WITH SOUTHWESTERN COMMUNITY COLLEGE THAT WILL ENABLE THE DEVELOPMENT OF A BACCALAUREATE PROGRAM UTILIZING THE UNIVERSITY CENTER CONCEPT ON THE UNIVERSITY AND INNOVATION DISTRICT PROPERTY Recommended Action: Council adopt the resolution. Approval of the Consent Calendar A motion was made by Deputy Mayor Diaz, seconded by Councilmember Padilla, 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, Padilla and Casillas Salas4 - No:0 Abstain:0 ITEMS REMOVED FROM THE CONSENT CALENDAR 2.18-0035 RESOLUTION NO. 2018-021 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE 2018 ANNUAL REPORT FOR THE DOWNTOWN CHULA VISTA PROPERTY-BASED BUSINESS IMPROVEMENT DISTRICT Mayor Casillas Salas stated she would abstain from voting on the item due to a potential property -related conflict of interest. She left the dais and Deputy Mayor Diaz led the discussion. Councilmember Aguilar gave a presentation on the item. A motion was made by Councilmember Aguilar, seconded by Councilmember Padilla, to adopt Resolution No. 2018-021, heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz and Padilla3 - No:0 Abstain:Casillas Salas1 - Mayor Casillas Salas returned to the dais. PUBLIC COMMENTS Hei-ock Kim, Executive Director, Kim Center, spoke regarding workplace gender equality. The following members of the public spoke in opposition to legalizing commercial marijuana activities: - Kelly McCormick - Peggy Walker - Barbara Gordon - Carol Green, Chula Vista resident Page 2City of Chula Vista 17 February 13, 2018City Council Meeting Minutes - Draft ACTION ITEMS 4.18-0009 A.ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 3.34 TO TITLE 3 OF THE CHULA VISTA MUNICIPAL CODE TO ESTABLISH A ONE-HALF CENT GENERAL TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION INCLUDING PROVISIONS FOR CITIZENS’ OVERSIGHT AND ACCOUNTABILITY (FIRST READING) (4/5 VOTE REQUIRED) B.1. RESOLUTION NO. 2018-023 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA: (A) AMENDING RESOLUTION NO.2018-004 CALLING A GENERAL MUNICIPAL ELECTION TO BE HELD ON JUNE 5, 2018; (B) ORDERING SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE RELATING TO THE ESTABLISHMENT OF A ONE-HALF CENT GENERAL TRANSACTIONS AND USE TAX; (C) AUTHORIZING THE MAYOR TO SUBMIT BALLOT ARGUMENTS IN FAVOR OF THE MEASURE; AND (D) DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE (4/5 VOTE REQUIRED) OR 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (A) CALLING A SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 6, 2018 FOR THE PURPOSE OF SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE RELATING TO THE ESTABLISHMENT OF A ONE-HALF CENT TRANSACTIONS AND USE TAX; (B) CONSOLIDATING THE ELECTION WITH THE STATEWIDE GENERAL ELECTION; (C) REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO TO PERMIT THE REGISTRAR OF VOTERS TO CONDUCT SUCH ELECTION; (D) AUTHORIZING THE CITY CLERK TO CARRY OUT THE NECESSARY PROCEDURES OF SUCH ELECTION; (E) AUTHORIZING THE MAYOR TO SUBMIT BALLOT ARGUMENTS IN FAVOR OF THE MEASURE; AND (F) DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE (4/5 VOTE REQUIRED) C.RESOLUTION NO. 2018-024 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING ITS INTENDED PUBLIC SAFETY EXPENDITURE PLAN Assistant City Manager Kachadoorian and Marketing and Communications Manager Steinberger gave a presentation on the item. Deputy Fire Chief Muns, Fire Chief Geering, and Police Chief Kennedy spoke regarding the item. Page 3City of Chula Vista 18 February 13, 2018City Council Meeting Minutes - Draft Staff answered questions of the Council. The following members of the public spoke in support of staff’s recommendation: - Mark Bartlett, Chula Vista resident - Jill Galvez, Chula Vista resident - Darrell Roberts, representing the Chula Vista Fire Fighters - David Oyos, representing Chula Vista Police Officers Association - Robert Godinez, Chula Vista resident - Patrick MacFarland, Chula Vista resident - Claudia Zaker, Chula Vista resident - Max Zaker, Chula Vista resident - Steve Castaneda, Chula Vista resident - Jesse Navarro, Chula Vista resident Damon French, Chula Vista resident, spoke in opposition to staff's recommendation and provided written communications. Gabriel Gutierrez, Chula Vista resident, submitted a request to speak but was not present when called. Council discussion ensued. City Attorney Googins stated Council had been provided with a revised ordinance and revised resolutions, and that Council’s action on the item would be with respect to the revised versions. A motion was made by Councilmember Padilla, seconded by Councilmember Aguilar, to place the above ordinance (Item 4A) on first reading, heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:0 Abstain:0 A motion was made by Deputy Mayor Diaz, seconded by Mayor Casillas Salas, to adopt Resolution No. 2018-023 (Item 4 B.1), heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:0 Abstain:0 A motion was made by Councilmember Aguilar, seconded by Councilmember Padilla, to adopt Resolution No. 2018-024 (Item 4 C), heading read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:0 Abstain:0 Page 4City of Chula Vista 19 February 13, 2018City Council Meeting Minutes - Draft 5.18-0060 A. RESOLUTION NO. 2018-025 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) RATIFYING THE PREVIOUSLY EXECUTED CITY MANAGER EMPLOYMENT AGREEMENT FOR THE PERIOD OF 2014 TO 2018 AND (2) APPROVING A SUCCESSOR CITY MANAGER EMPLOYMENT AGREEMENT FOR THE PERIOD OF 2018 TO 2021 B. RESOLUTION NO. 2018-026 OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE REVISED FISCAL YEAR 2017-2018 COMPENSATION SCHEDULE EFFECTIVE FEBRUARY 16, 2018, AS REQUIRED BY CALIFORNIA CODE OF REGULATIONS, TITLE 2, SECTION 570.5, TO REFLECT: SALARY ADJUSTMENT FOR THE CITY MANAGER CLASSIFICATION City Manager Halbert left the dais during discussion and voting on the item. City Attorney Googins presented information on the item, including information on the terms and salary in the proposed employment agreement. A motion was made by Mayor Casillas Salas, seconded by Deputy Mayor Diaz, to adopt Resolution Nos. 2018-025 and 2018-026, headings read, text waived. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:0 Abstain:0 City Manager Halbert returned to the dais. CITY MANAGER’S REPORTS City Manager Halbert expressed gratitude to the Mayor and Council and stated that he was looking forward to the next three years. MAYOR’S REPORTS 6.18-0059 CONSIDERATION OF CITY ENDORSEMENT OF “THE BIG 24-HOUR GIVEBACK” EVENT, WHICH WILL TAKE PLACE OVER A 24-HOUR PERIOD BETWEEN FEBRUARY 28 - MARCH 1, 2018 The Big 24-Hour Giveback is a fundraising event hosted by Seven Mile Casino and benefitting South Bay Community Services. Mayor Casillas Salas presented information on the item. Patty Chavez, Chula Vista resident, representing South Bay Community Services, spoke in support of City endorsement of the event. . Page 5City of Chula Vista 20 February 13, 2018City Council Meeting Minutes - Draft A motion was made by Mayor Casillas Salas, seconded by Councilmember Aguilar, to endorse the Big 24-Hour Giveback event. The motion carried by the following vote: ACTION: Yes:Aguilar, Diaz, Padilla and Casillas Salas4 - No:0 Abstain:0 Mayor Casillas Salas reported on her attendance at a UnidosUS event, at which the MAAC organization received a Nonprofit of the Year award. She also attended a 70th anniversary celebration for the Saint Charles School. COUNCILMEMBERS’ COMMENTS At the request of Councilmember Aguilar there was consensus of the Council to add an item to the next agenda considering City endorsement of the 2018 "Village Summer Nights" series of events planned for the Third Avenue Village in Chula Vista. CITY ATTORNEY'S REPORTS City Attorney Googins announced that the Council would convene in closed session to discuss Item 8 listed below, and that Item 7 would be continued to the meeting of February 20, 2018. Mayor Casillas Salas paid tribute to Dr. Larry Wergeland, Jr. and stated the meeting would be adjourned in his honor. Mayor Casillas Salas recessed the meeting at 7:33 p.m. The Council reconvened in Closed Session at 7:42 p.m., with Councilmembers Aguilar, Diaz, and Padilla, and Mayor Casillas Salas 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. 7.18-0054 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(1) Name of case:Juan Abenojar and Salome Rincon v. City of Chula Vista, San Diego Superior Court, Case No. 37-2016-00024897-CU-PO-CTL Item 7 was not discussed. Page 6City of Chula Vista 21 February 13, 2018City Council Meeting Minutes - Draft 8.18-0063 CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO CALIFORNIA GOVERNMENT CODE SECTION 54956.8 Property:Assessors Parcel Number (APN) 643-06-57-00 Agency Negotiators:Gary Halbert and Eric Crockett Negotiating Parties:City of Chula Vista and Chesnut Properties Under Negotiation:Price and Terms of Payment for Acquisition and Leaseback No reportable action.ACTION: ADJOURNMENT At 8:45 p.m., Mayor Casillas Salas adjourned the meeting in memory of Dr. Larry Wergeland Jr. to the Regular City Council Meeting on February 20, 2018, at 5:00 p.m., in the Council Chambers. _______________________________ Sheree Kansas, Deputy City Clerk Page 7City of Chula Vista 22 City of Chula Vista Staff Report File#:18-0218, Item#: 2. WRITTEN COMMUNICATIONS Letters of resignation from Ruth Serrato,International Friendship Commission and Tony Stewart, Veteran’s Advisory Commission RECOMMENDED ACTION Council accept the resignations. City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 23 24 25 City of Chula Vista Staff Report File#:18-0219, Item#: 3. ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA)PLANNED COMMUNITY DISTRICT REGULATIONS FOR THE OTAY RANCH PORTION OF VILLAGE FOUR (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY Otay Valley Quarry,LLC is proposing to develop an approximately 166-acre site (Assessor’s Parcel Number 644-060-24) within the Otay Ranch area of the City of Chula Vista. As proposed,the project requires amendments to the Otay Ranch General Development Plan,as well as a new Portion of Village 4 Sectional Planning Area (SPA)Plan,Tentative Map and a Final Environmental Impact Report (FEIR) 17-0001. ENVIRONMENTAL REVIEW Environmental Notice The proposed Project may have a significant effect on the environment.Therefore,an Environmental Impact Report has been prepared. Environmental Determination The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that there is substantial evidence,in light of the whole record,that the project may have a significant effect on the environment;therefore,the Development Services Director has caused the preparation of an Environmental Impact Report,FEIR 17-0001. BOARD/COMMISSION RECOMMENDATION On March 28,2018,the Planning Commission took action and voted 5-0-2 with two Commissioners City of Chula Vista Printed on 5/17/2018Page 1 of 23 powered by Legistar™ 26 File#:18-0219, Item#: 3. being absent that the Council adopt the resolutions and the ordinance. DISCUSSION Environmental Impact Report Section 21002 of the California Environmental Quality Act (CEQA)requires that an environmental impact report identify the significant effects of a project on the environment and provide measures or alternatives that can mitigate or avoid those significant effects.This Environmental Impact Report (EIR)contains an environmental analysis of the potential impacts associated with implementing the proposed Portion of Village Four SPA Plan. Pursuant to Section 15161 of the CEQA Guidelines,this document was prepared as a “Project EIR” and is “focused primarily on the changes in the environment that would result from the development”(i.e.,the build out of the proposed project).Where environmental impacts have been determined to be potentially significant,this EIR presents mitigation measures directed at reducing those adverse environmental effects.The development of mitigation measures provides the lead agency with ways to substantially lessen or avoid the significant effects of the project on the environment,to the degree feasible.Alternatives to the proposed project are presented to evaluate whether there are alternative development scenarios that can further minimize or avoid significant impacts associated with the project.The major issues that are addressed in the EIR were determined based on review by staff,and public comment received on the Notice of Preparation (distributed in April 2016).The issues analyzed in the EIR include land use,aesthetics,transportation and traffic,air quality,noise,cultural resources,paleontological resources,biological resources,agricultural resources,water quality and hydrology,geology and soils,public services and utilities,climate change, hazards, and housing and population. The Draft EIR (DEIR)was distributed for a 45-day public review period on October 23,2017.Public comment letters were received.The Final EIR (FEIR)includes all comments received,and responses to them.The DEIR and FEIR identify that the proposed project would result in significant and unmitigated impacts (please see discussion below).All feasible mitigation measures with respect to project impacts have been included in the FEIR.As the project would have significant and unmitigated impacts,approval of a Statement of Overriding Considerations by City Council must occur prior to approving the project.The FEIR and Findings of Fact and Statement of Overriding Considerations have been attached for the City Council’s review,post recommendation from the Planning Commission,to determine that the FEIR is adequate for the project,and so that City Council can certify the FEIR.For those impacts with associated mitigation,a Mitigation Monitoring and Reporting Program (MMRP) has been provided with the FEIR (See Attachment 7). The City has examined a reasonable range of alternatives to the proposed project,other than the proposed project described in the FEIR.The alternatives include a Reduced Development Alternative and a No Project/No Build Alternative.The Reduced Development Alternative would result in the development of 61 single family residential units.The No Project/No Build Alternative would result in the project site remaining as it exists today.Based on this examination,the City has determined that the Reduced Development Alternative meets most of the project objectives while reducing project impacts;therefore,the Reduced Development Alternative has been identified as the environmentally superior alternative. City of Chula Vista Printed on 5/17/2018Page 2 of 23 powered by Legistar™ 27 File#:18-0219, Item#: 3. Summary of Environmental Impacts The following discussion contains a summary of the impact conclusions from the FEIR. Significant and Unmitigated Impacts: Landform Alteration - Aesthetics ·The proposed project would represent a high visual change at multiple key visual points because the site would experience a permanent change from an undeveloped state to a developed state. Because there are no applicable or feasible mitigation measures that the City can impose at this time to reduce impacts to below a level of significance,direct and cumulative impacts to landform alteration would remain significant and unmitigated.Adoption of a Statement of Overriding Considerations will be required should the decision makers choose to approve the project. Transportation, Circulation, and Access ·Under existing conditions,the proposed project would result in cumulative impacts to the Olympic Parkway/Interstate 805 (I-805) SB Ramps intersection and Olympic Parkway/I-805 NB Ramps intersection. ·Under the Year 2020 conditions,the proposed project would result in cumulative impacts to the Olympic Parkway/I-805 SB Ramps intersection;Olympic Parkway/I-805 NB Ramps intersection;Olympic Parkway from I- 805 SB Ramps to I-805 NB Ramps; and I-805 NB Ramps to Oleander Avenue. ·Under the Year 2030 (buildout)conditions,the proposed project would result in cumulative impacts to the Olympic Parkway/I-805 SB Ramps intersection,Olympic Parkway/I-805 NB Ramps intersection,and Olympic Parkway from I-805 NB Ramps to Oleander Avenue. Because there are no applicable or feasible mitigation measures that the City can impose at this time to reduce impacts to below a level of significance,cumulative impacts to transportation,circulation,and access would remain significant and unmitigated.Adoption of a Statement of Overriding Considerations will be required should the decision makers choose to approve the project. Prior to issuance of each building permit for the Portion of Village Four project,the applicant or its designee shall pay its fair share payment,through the Traffic Development Impact Fee program,proportionate to its cumulative impact toward improvements. Cultural Resources ·Although the actions of the proposed project would be mitigated through data recovery,curation,and reporting, the proposed project’s contribution to a cumulatively considerable impact would not be reduced to a less than significant level. Therefore, the cumulative impact on cultural resources would be cumulatively significant. Mitigation measure MM-CUL-1 would reduce these identified potentially significant impacts to less than significant at the project level.While any individual project may avoid or mitigate the direct loss of a specific resource,the effect is considerable when considered cumulatively and would remain significant and unavoidable. Because there are no applicable or feasible mitigation measures that the City can impose at this time to reduce impacts to below a level of significance,cumulative impacts to cultural resources would remain significant and unmitigated. Adoption of a Statement of Overriding Considerations will be required should the decision makers choose to approve the project. Air Quality ·During construction, the proposed project would result in a significant cumulative impact because of construction activities. The emissions of NOx and CO would exceed the applicable significance threshold levels during construction. Following implementation of mitigation, emissions would not be reduced to a level below the City’s significance thresholds. As such, effects regarding NO x and CO emissions during construction activities would be significant and unavoidable. ·Regarding nitrogen dioxide,according to the construction emissions analysis,construction of the proposed project would contribute to exceedances of the NAAQS and CAAQS for NO2. City of Chula Vista Printed on 5/17/2018Page 3 of 23 powered by Legistar™ 28 File#:18-0219, Item#: 3. the proposed project would contribute to exceedances of the NAAQS and CAAQS for NO2. NO2 and NOx health impacts are associated with respiratory irritation.Following implementation of mitigation,emissions would not be reduced to a level below the City’s significance thresholds. The emissions associated with construction would be temporary, lasting approximately 2 years. Daily construction emissions would still exceed the threshold levels for NOx and CO following implementation of mitigation measures. Therefore, direct and cumulative impacts would remain significant and unavoidable. Because there are no applicable or feasible mitigation measures that the City can impose at this time to reduce impacts to below a level of significance,impacts to air quality would remain significant and unmitigated.Adoption of a Statement of Overriding Considerations will be required should the decision makers choose to approve the project. Public Services and Utilities - Energy ·San Diego Gas &Electric has indicated that without an increased import capacity,including a new substation within the Otay Ranch area,future energy needs could not be ensured. Impacts would be cumulatively considerable. The California Public Utilities Commission approved construction of a substation,known as the Salt Creek Substation,in 2016,with construction expected to be complete in late 2018,prior to completion of the proposed project.As such,infrastructure for the continued long-term delivery of energy to the Otay Ranch area would be in place prior to the completion of the project,and would be in place for full buildout of Otay Ranch.The 120-megavolt amperes substation would provide infrastructure necessary to provide power to buildout of Otay Ranch,but would not generate electricity or guarantee that adequate supply would be available.Therefore,because no assurance can be made that long-term energy would be supplied to the site and other planned sites,at full buildout and beyond,impacts would be cumulatively considerable and impacts would remain significant and unavoidable. Because there are no applicable or feasible mitigation measures that the City can impose at this time to reduce impacts to below a level of significance,cumulative impacts to energy would remain significant and unmitigated.Adoption of a Statement of Overriding Considerations will be required should the decision makers choose to approve the project. Climate Change ·Construction of the proposed project would result in Green House Gas (GHG) emissions, which are primarily associated with use of off-road construction equipment, on-road hauling and vendor (material delivery) trucks, and worker vehicles. Operation of the proposed project would result in GHG emissions from vehicular traffic, area sources, electrical generation, water supply, and solid waste. The proposed project’s service population-based emissions would be more than the City’s proposed efficiency metric of 1.3 MT CO2e /SP/yr. ·Regarding consistency with SB 32 and EO S-3-05,there are no established protocols or thresholds of significance for future year analysis.However,project-generated GHG emissions would exceed the efficiency threshold,therefore,the proposed project would potentially City of Chula Vista Printed on 5/17/2018Page 4 of 23 powered by Legistar™ 29 File#:18-0219, Item#: 3. would exceed the efficiency threshold,therefore,the proposed project would potentially conflict with the state’s trajectory toward future GHG reductions.Most mitigation is not quantifiable and/or the extent to which some measures would apply to the project is unknown. Because there are no applicable or feasible mitigation measures that the City can impose at this time to reduce impacts to below a level of significance,direct impacts to Climate Change would remain significant and unmitigated.Adoption of a Statement of Overriding Considerations will be required should the decision makers choose to approve the project. All feasible mitigation measures have been required of the proposed project with respect to the above identified impacts.It should be noted that significant and unmitigated impacts for the above identified issue areas were also identified within the FEIR.Although in some instances the above identified mitigation measures may substantially lessen these significant impacts,adoption of the measures will not fully avoid the impacts. As a Lead Agency,the City must make findings pursuant to CEQA Guidelines Sections 15043, 15091,and 15093 for each significant and unmitigated impact.The attached Findings of Fact and Statement of Overriding Considerations have been prepared specifically for the project actions for which the City has authority to approve or carry out (see Attachment 2,Findings of Fact and Statement of Overriding Considerations). Sections 15043,15091 and 15093 of the CEQA Guidelines state that the adverse environmental effects are considered “acceptable”and a Lead Agency can approve a project that will result in significant effects when,based upon substantial evidence,findings have been made that specific economic,legal,social,technological or other considerations make infeasible the mitigation measures or project alternatives identified in the FEIR,and benefits of a proposed project outweigh the policy of reducing or avoiding the significant environmental effects of the project. Significant and Mitigated to Less than Significant Significant impacts were identified in the following environmental issue areas,and mitigation measures were required in the FEIR to reduce the impacts to less than significant.An MMRP (see Attachment 13)has been prepared to ensure that the mitigation measures will be implemented in accordance with specified monitoring requirements. Biological Resources ·The proposed project would result in potentially significant direct impacts to both covered and non-covered species.Mitigation measures MM-BIO-1 through MM-BIO-8 would reduce these identified potentially significant impacts to a less than significant level. ·The proposed project would result in potentially significant impacts to nesting birds and nesting habitat.Mitigation measures MM-BIO-9 and MM-BIO-10 would reduce these identified potentially significant impacts to a less than significant level.To ensure no burrowing owls have migrated to the development area,a preconstruction survey would be conducted,in accordance with MM-BIO-11.If construction delays occur,additional surveys will be required. ·The proposed project would result in potentially significant indirect impacts to both covered and non-covered species.Mitigation measures MM-BIO-4,MM-BIO-5,MM-BIO-6,MM-BIO-15,MM-BIO-16,as well as dust control measures would reduce these identified potentially significant impacts to a less than significant level. ·The proposed project would result in potentially significant direct impacts to sensitive vegetation communities, both on-and off-site.Vegetation communities include coastal sage scrub,succulent scrub,non-native grassland, City of Chula Vista Printed on 5/17/2018Page 5 of 23 powered by Legistar™ 30 File#:18-0219, Item#: 3. both on-and off-site.Vegetation communities include coastal sage scrub,succulent scrub,non-native grassland, tamarisk scrub,and unvegetated channel.Mitigation measures MM-BIO-1 through MM-BIO-7,MM-BIO-15,and MM-BIO-16 would reduce these identified potentially significant impacts to a less than significant level. ·The proposed project would result in potentially significant indirect impacts to jurisdictional waters and wetlands. Mitigation measures MM-BIO-4 through MM-BIO-6,and MM-BIO-12 through MM-BIO-14 would reduce these identified potentially significant impacts to a less than significant level. Cultural Resources ·Under the development of the proposed project there is always potential to encounter previously unidentified subsurface cultural deposits.Mitigation measure MM-CUL-1 would reduce these identified potentially significant impacts to a less than significant level. Transportation, Circulation, and Access ·Under the Year 2020 conditions,the proposed project would result in cumulative impacts to the Olympic Parkway/Brandywine Avenue intersection;Olympic Parkway/Heritage Road intersection;Olympic Parkway from Brandywine Avenue to Oleander Avenue; and Olympic Parkway from Oleander Avenue to Heritage Road. ·Under the Year 2030 (buildout)conditions,the proposed project would result in cumulative impacts to Olympic Parkway from Brandywine Avenue to Oleander Avenue;and Olympic Parkway from Oleander Avenue to Heritage Road. Mitigation measure MM-TCA-1 would reduce these potentially significant impacts to a less than significant level. Hazards and Risk of Upset ·There is the potential some areas containing contaminated soils exist on the proposed project site from previous agricultural uses.Mitigation measure MM-HAZ-1 would reduce these identified potentially significant impacts to a less than significant level. ·Due to the close proximity of Brown Field Airport,impacts would be potentially significant.The proposed project would be required to comply with all Brown Field Airport Land Use Compatibility Plan conditions.Mitigation measures MM-HAZ-2,MM-HAZ-3,and MM-HAZ-4 would reduce these identified potentially significant impacts to a less than significant level. Noise ·The first row of residences aligned closest to Main Street would be exposed to traffic noise levels ranging from 68 to 73 dBA CNEL from future traffic.This would exceed the exterior noise criterion of 65 dBA CNEL,thus impacts would be potentially significant.Second-floor exterior uses such as balconies (if these are incorporated into the residential design)fronting along Main Street would exceed the City’s 65 dBA CNEL noise standard.Additionally, interior noise levels at residences adjacent to Main Street would have the potential to exceed 45 dBA CNEL. Mitigation measures MM-N-1,MM-N-2,and MM-N-3 would reduce these identified potentially significant impacts to a less than significant level. ·Construction related blasting and rock crushing could result in substantial vibration and noise impacts.Mitigation measures MM-N-4 and MM-N-5 would reduce these identified potentially significant impacts to a less than significant level. ·The generation of noise from construction activities during noise-sensitive time periods upon completed and occupied components of the project is considered a significant impact.Mitigation measures MM-N-4,MM-N-5, and MM-N-6 would reduce this identified potentially significant impact to a less than significant level. Geology and Soils ·The surficial soil within the proposed project site consists of topsoil,colluvium,alluvium,and compressible portions of landslide debris.These soils are not considered suitable for the support of the proposed project development.Underlying geologic soils could also exhibit high expansivity.Mitigation measures MM-GEO-1 City of Chula Vista Printed on 5/17/2018Page 6 of 23 powered by Legistar™ 31 File#:18-0219, Item#: 3. would reduce these identified potentially significant impacts to a less than significant level. Public Services and Utilities ·The proposed project would result in an incremental increase in demand for fire,emergency,police,and library services,as well as parks.Mitigation measure MM-PUB-1 would reduce these identified potentially significant impacts to a less than significant level. ·The proposed project would result in an incremental increase in demand for schools.Mitigation measure MM- PUB-2 would reduce this identified potentially significant impact to a less than significant level. ·The proposed project would also result in an incremental increase in demand for sewer services.Mitigation measure MM-PUB-3 would reduce this identified potentially significant impact to a less than significant level. Paleontological Resources ·The proposed project has the potential to impact fossil localities within the Otay Formation,mapped,moderate- sensitivity deposits within the Mission Valley Formation,and unnamed Quaternary terrace deposits located at the southernmost extent of the project site.Excavation within these formations would represent a potentially significant impact.Mitigation measure MM-PAL-1 would reduce this identified potentially significant impact to a less than significant level. Less than Significant Impacts Less than significant impacts were identified in the following environmental issue areas: Land Use, Planning and Zoning Water Quality and Hydrology Housing and Population Location, Existing Site Characteristics, and Ownership The project site is located on the east side of Wolf Canyon,straddling the future extension of Main Street from La Media Road to the north and to Heritage Road to the southwest.The site is surrounded by Village Three to the west,Village Two and Four to the north,Village Eight West to the east,and an existing rock quarry to the south.The site currently consists of vacant,undeveloped land.The project site is approximately 6.15 miles southeast of downtown Chula Vista, and 12.5 miles southeast of downtown San Diego.The project site is located immediately west of La Media Road,and approximately 1 mile south of Olympic Parkway. Portion of Village Four consists of 166 acres owned by Otay Valley Quarry, (see Locator Map, Attachment 1). Existing General Plan, SPA Plan Land Use Designations and Land Use City of Chula Vista Printed on 5/17/2018Page 7 of 23 powered by Legistar™ 32 File#:18-0219, Item#: 3. Project Description The proposed project consists of 166 acres within a portion of the overall Otay Ranch Village 4 and involves the implementation of 350 residential units along with open space,open space preserve and Community Purpose Facilities or CPF sites. In order to achieve this,it is necessary to amend the existing Otay Ranch General Development Plan (GDP),along with approving a new Sectional Planning Area (SPA)Plan (including Planned Community District Regulations) and a new tentative map, as follows: General Development Plan Amendment The existing Village 4 General Development Plan includes 453 residential units approved on 118 acres within the Low Medium land use category at a density of 3.8 dwelling units per acre.The existing land uses include predominantly single family residential north and south of Main Street, open space and open space preserve.In order to implement the proposed project,an amendment to the General Development Plan is required. This amendment would include: 1.Add Medium High (MH)and High (H)land use designations to the GDP Land Use Designation Table for Village 4 (to allow for higher density residential development)as allowed under the clustering provisions of the City’s General Plan. 2.Reduce the amount of allowable Single Family (SF)Residential Units in Village 4 (from 453 to 176 dwelling units). 3. Allow for 150 Medium High (MH) multi-family dwelling units. 4.Allow for 127 High Density (H) multi-family dwellings units. 5.Increase the overall residential density from 3.8 to 6.6 dwelling units/acre. The distribution of residential dwelling units by categories will be adjusted while still retaining the previously adopted overall total dwelling units of 453 in Village 4.Please note that this amendment City of Chula Vista Printed on 5/17/2018Page 8 of 23 powered by Legistar™ 33 File#:18-0219, Item#: 3. previously adopted overall total dwelling units of 453 in Village 4.Please note that this amendment to the General Development Plan covers the entire area of Village Four whereas the rest of the requested approvals address only the Portion of Village Four project. New Portion of Village Four SPA Plan The SPA Plan establishes the vision for the Portion of Village 4 and defines the land use character and mix of uses,design criteria,circulation systems,and public infrastructure requirements for this 166-acre project. The project design utilizes clustering provisions with the highest density residential use located north of Main Street and is located directly adjacent to the core of Village 8 West.The remaining mid-to low residential uses are located south of Main Street,including CPF uses,all of which are surrounded by open space and open space preserve. The SPA Plan implements the GDP. The PC District Regulations include the Zoning District Map that identifies the particular zones for the project and associated development standards such as permitted land uses,lot coverage,height and bulk requirements.The proposed Zoning District Map and accompanying land use and development regulations will ensure that the SPA Plan is implemented in accordance with the Otay Ranch GDP New Tentative Map A new Tentative Map has been prepared which will implement the proposed land uses and subdivide 166-acres into parcels supporting up to 73 single-family residential units,277 multi-family residential units,approximately 2.08 acres of CPF uses,and 20.19 acres of open space uses for the Portion of Village 4 project. Also included is 97.2 acres of open space preserve. ANALYSIS 1.Boundary Adjustment A Multi-Species Conservation Program (MSCP)Boundary Line Adjustment is necessary to match the approved alignments for Main Street on the adjacent developments.When originally envisioned with the adoption of the Otay Ranch GDP/Subregional Plan,Main Street (also known as Otay Valley Road)served as the major east/west roadway connecting Village Three with Village Eight.As each village SPA has been adopted,major roadways have been designed to meet the City’s roadway standards.Consistent with that approach,the applicant processing the Village Three SPA and map was required to prepare a grading and alignment study for the portions of Main Street between Villages Three and Eight,which included Village Four.Based on that study,the western point of Main Street,within Village Three,was established,and the eastern point of Main Street,within Village Eight West,was established.The intervening land is known as Village Four,and the alignment of Main Street within Village Four matches the alignment created and reviewed by the City during the processing of Village Three.The proposed alignment for the project reflects this new alignment shift to the north,and is the focus of the MSCP Boundary Line Adjustment.The give/take areas,which collectively compose the Boundary Line Adjustment Area,include the areas proposed to be given to the MSCP Preserve and those proposed to be removed from the Preserve.The MSCP Boundary Line Adjustment was approved by USFWS and CDFW on August 2,2017 and by the City on August 4,2017.Section 5.3 of this FEIR provides a detailed description of the conditions of the “give”and “take”areas separately. Where it is appropriate to discuss the give and take areas together,the area is referred to as the City of Chula Vista Printed on 5/17/2018Page 9 of 23 powered by Legistar™ 34 File#:18-0219, Item#: 3. Boundary Line Adjustment Area. 2.General Development Plan Amendment The Otay Ranch GDP was adopted on October 28,1993,with the concept to create a complete and balanced community clustered into villages with conveniently located housing,shops,work places, schools,parks,civic facilities,and open spaces.The entire Village Four area as identified in the Otay Ranch GDP is comprised of approximately 528 acres and was intended to be a lower-density village compared to surrounding villages due to its scenic location near Rock Mountain and limited area, being bound by the Otay River Valley and Wolf Canyon.The proposed project comprises approximately 166.02 acres within Village Four. Below is a table showing the existing breakdown of Village Four GDP land uses. The table indicates a total of 453 single family dwelling units can be developed within this village. Existing Village Four GDP Land Use Use Dwelling Units Acreage Appr ox. Pop. SF MF Total Dens Res.Park*CPF**Sch.C'ml.Ind.Open Sp. Art.Total LM 453 453 3.8 118.0 7.0 2.1 127.1 1,495 COMMUNIT Y PARK 55.8 55.8 OTHER 309.9 35.0 344.9 TOTAL 453 453 3.8 118.0 62.8 2.1 309.9 35.0 527.8 1,495 *Includes required acreage from other residential villages based on park acreage ratio of 3.0 acres per 1,000 persons. **Actual CPF acreage to be determined at the SPA level; CPF Acreage based on ratio of 1.39-acres per 1,000 persons. The proposed project is primarily a residential project with associated infrastructure and open space areas.As shown in the table below,amendments to the GDP are necessary to implement the proposed Portion of Village Four SPA land plan (See Attachment 4).Proposed amendments include: 1.Add Medium High (MH)and High (H)land use designations to the GDP Land Use Designation Table for Village 4 (to allow for higher density residential development). 2.Reduce the amount of allowable Single Family (SF)Residential Units in Village 4 from 453 to 176 dwelling units. 3.Allow for 150 Medium High (MH) multi-family dwelling units in Village 4. 4.Allow for 127 High Density (H) multi-family dwellings units in Village 4. 5.Increase the overall residential density from 3.8 to 6.6 dwelling units/acre for the 68.3 residential acres contained within the entire Village Four. 6.Adjust the distribution of residential dwelling units by category,while retaining the previous overall total dwelling units of 453. Proposed Village Four GDP Land Use Use Dwelling Units Acreage Appro x. Pop. SF MF Total Dens Res.Park*CPF**Sch.C'ml.Ind.Open Sp. Art.Total LM 176 176 3.6 48.9 1.7***0.8 50.7 581 MH 150 150 12.3 12.2 1.2**0.5 12.7 387 H 127 127 17.6 7.2 1**0.5 7.7 328 COMMUNITY PARK 55.8*55.8 OTHER 233.4 11.4 244.8 TOTAL 176 277 453 6.6 68.3 56.8 1.8 233.4 11.4 371.8 1,296 *Includes required Park acreage from other residential villages based on park acreage ratio of 3.0 acres per 1,000 persons. **Park land included in residential acreage. ***0.72 acre of park land included in residential acreage. + Actual CPF acreage to be determined at the SPA level; CPF Acreage based on ratio of 1.39-acres per 1,000 persons. City of Chula Vista Printed on 5/17/2018Page 10 of 23 powered by Legistar™ 35 File#:18-0219, Item#: 3. Proposed Village Four GDP Land Use Use Dwelling Units Acreage Appro x. Pop. SF MF Total Dens Res.Park*CPF**Sch.C'ml.Ind.Open Sp. Art.Total LM 176 176 3.6 48.9 1.7***0.8 50.7 581 MH 150 150 12.3 12.2 1.2**0.5 12.7 387 H 127 127 17.6 7.2 1**0.5 7.7 328 COMMUNITY PARK 55.8*55.8 OTHER 233.4 11.4 244.8 TOTAL 176 277 453 6.6 68.3 56.8 1.8 233.4 11.4 371.8 1,296 *Includes required Park acreage from other residential villages based on park acreage ratio of 3.0 acres per 1,000 persons. **Park land included in residential acreage. ***0.72 acre of park land included in residential acreage. + Actual CPF acreage to be determined at the SPA level; CPF Acreage based on ratio of 1.39-acres per 1,000 persons. The proposed project is designed in conformance with the Otay Ranch GDP.The organization of the land uses within the SPA area meets the GDP objectives of integration and compatibility of land uses within the villages and with adjacent communities.The SPA also supports GDP land use goals and objectives by providing a range of housing and employment opportunities.The proposed project would be consistent with the vision of planned development of Village Four. While the GDP envisioned single-family residential throughout Village Four,the proposed project’s inclusion of higher density multi-family along Main Street is based upon the allowable clustering provisions of the General Plan.These provisions allow for clustering primarily due to physical constraints of the site such as:topography;geology;biological resources;or other similar constraints.In addition,the higher density would better support future transit use contemplated for this roadway,while also requiring less developed area than solely providing the same amount of single-family homes.The Project is planned to not include any commercial land uses. Residents in the Portion of Village Four would provide adequate additional support for commercial uses in the adjacent abutting Village Eight West.The project includes bicycle and pedestrian connections to Village Eight West and provides densities to support mass transit. The land use plan for the Portion of Village Four supports the goals and objectives of the Otay Ranch GDP by providing a diverse range of housing opportunities.The organization of the land uses meets the objectives of integration and compatibility of land uses within villages and with adjacent communities.The project supports the objective of enhancing the unique environmental and visual qualities of Otay Ranch by generally conforming to the natural topography of the site and maintains views toward open space and distant mountains. According to the Otay Ranch GDP and the Quimby Act,the proposed project is obligated to provide approximately 2.94 acres of parkland.In Village Four,the park obligation will be addressed through the payment of the Park In-Lieu fee.Each dwelling unit will pay the Park In- Lieu fee in accordance with Chula Vista municipal Code (CVMC)Chapter 17.10 Parklands and Public Facilities,Section 17.10.120,Geographical distribution on in-lieu fees for land dedication. City of Chula Vista Printed on 5/17/2018Page 11 of 23 powered by Legistar™ 36 File#:18-0219, Item#: 3. Public Facilities,Section 17.10.120,Geographical distribution on in-lieu fees for land dedication. These contributions cover the Village SPA park obligation. 3.SPA Plan In accordance with Section 19.48.090 of the CVMC,prior to any development within a sectional planning area,the developer shall submit a SPA plan to the City for review and approval.The SPA plan establishes the vison for the Portion of Village Four and defines the land use character and mix of uses,design criteria,circulation systems,and public infrastructure requirements for the project for this approximate 166-acre site within Otay Ranch. Regional and Circulation Network Regional access to the project site is from State Route (SR)125,which runs north/south and is located approximately 1 mile east of the project site.Additional north/south access is provided from Interstate (I)805,approximately 3 miles west of the project site,and I-5,located approximately 6 miles west of the project site.SR-54 and SR-905 provide regional east/west circulation, approximately 5.5 miles north and 3.25 miles south, respectively, of the project site. East/west access is provided by Olympic Parkway,1 mile north of the project site,connecting to I- 805 to the west and SR-125 to the east.North/south access would be provided by an extension of Heritage Road along the western portion of Village Two,and by an extension of La Media Road along the eastern edge of the project site.La Media Road is a north-south arterial which crosses portions of Village Eight West.It will be extended from its existing terminus just north of Village Eight West and become Otay Valley Road within the Village Eight West Town Center.Otay Valley Road will extend south and then curve to the east,providing a future connection to Village Eight East and a future Otay Valley Road interchange at SR-125.The primary entry point into Village Four would be from La Media Road. Internal Circulation: The Portion of Village Four circulation system provides a system of roadway and trail corridors to support both vehicular and non-vehicular modes of transportation to serve the community.This system includes the extension of existing and planned roads,trails,and transit from adjacent villages as well as internal systems to serve the SPA. The Portion of Village Four street pattern organizes traffic into a hierarchy of travel ways,arranged according to anticipated volumes and modes of travel.This organization is consistent with the roadway classifications established by the Otay Ranch GDP.In Portion of Village Four,roadways respond to the landform of Rock Mountain and Wolf Canyon.The southern portions of the Village do not support a grid pattern of streets;however,the central and northern portions allow for a modified grid pattern that promotes walkability and supports urban development in the Village Eight West, Town Center.The street pattern in the southern areas is a suburban street pattern,provides a transition to the natural open space areas atop Rock Mountain,and reflects the topography of this portion of the site. Approximately 12.06 acres of the project site would be used for roadway and circulation right-of-way, which includes an approximately 2-mile eastern extension of Main Street to provide primary circulation through the project site.In addition to the extension of Main Street,four internal village City of Chula Vista Printed on 5/17/2018Page 12 of 23 powered by Legistar™ 37 File#:18-0219, Item#: 3. circulation through the project site.In addition to the extension of Main Street,four internal village streets (Streets “A,” “B,” “C,” and “D”) are proposed. Main Street: Main Street is proposed as an east/west six-lane arterial roadway that would serve as the primary connection to the surrounding existing and planned regional circulation network.Main Street would be approximately 124 feet wide (right-of-way)and approximately 100 feet wide spanning from curb-to -curb.Main Street would include a raised median,three travel lanes in each direction,Class II bicycle lanes in each direction,and a buffered 5-foot-wide pedestrian walkway on each side of the roadway. Direct pedestrian links would extend through the proposed project site into Village Eight West,and future connections would be provided to Village Three via Main Street.Class II bicycle facilities are planned on Main Street.The Main Street Bridge is not considered part of this project and would be constructed by others or the City of Chula Vista.Main Street will be extended east to provide a future connection into/through Village Eight West to the interchange at SR-125 and westerly into/through Village Three. Village Roadways: The balance of the roadway system for Portion of Village Four is made up of Parkway Residential Streets.These streets provide direct access to single-family homes in the southern portion of the SPA Area.The street alignments are shown on the Tentative Map and subject to final engineering during the processing of the Final Maps for Portion of Village Four.Additional private streets and lanes will be provided for the multi-family planning areas (R-2a,R-2b,and R-3),as part of the site plan review for the multi-family neighborhoods.The design of these street sections will be determined by the site plan and shall be subject to design review. The Secondary Village Entry streets are public streets that provide access to the residential neighborhoods south of Main Street.Streets ‘B’and ‘C’provide egress and ingress from the southern residential area.Street ‘B’provides a connection to the multi-family neighborhood on the north side of Main Street.Driveways along residential street shall be located a minimum of twenty-five-feet (25’) from any street intersection unless otherwise approved by the City Engineer.The residential street pattern is designed to provide access into the neighborhoods and promote walkability. The SPA plan includes a site utilization plan,Planned Community District Regulations,Design Guidelines and other supporting documents. Site Utilization Plan The proposed project is primarily a residential project with associated infrastructure and open space areas. The proposed land uses are summarized in the table below: Portion of Village Four Sectional Planning Area Plan Land Use Summary Land Use Planning Area Units Gross Acres Target Density Residential Single-Family Residential - 3-6 du/ac SF R-1 73 15.18 4.81 Multi-Family (Medium-High) Residential - 11-18 du/ac MF R-2a 110 7.91 13.91 MF R-2b 40 4.24 9.43 Multi-Family (High) Residential - 18-27 du/ac MF R-3 127 7.16 17.74 Residential Totals 350 34.49 10.15 Community Purpose Facility (CPF) CPF-1 CPF -1.21 - CPF-2 CPF -0.87 - CPF Sub-Total -2.08 - Open Space (OS) OS-1 OS -0.59 - OS-2 OS -3.03 - OS-3 OS -3.08 - OS-4 OS -1.57 - OS-5 OS -0.59 - OS-6 OS -3.11 - OS-8 OS -1.35 - OS-9 OS -6.87 - Total Private Open Space -20.19 - Open Space Preserve (OSP) OSP-7 Preserve -1.37 - OSP-10 Preserve -6.67 - OSP-11 Preserve -44.27 - OSP-12 Preserve -44.89 - Total Preserve Open Space -97.20 - Open Space Sub-Total -117.39 - Open Space (OS) Circulation Main Street Circulation -10.82 - Internal Streets Circulation -1.24 - Circulation Sub-Total -12.06 - Totals 350 166.02 - City of Chula Vista Printed on 5/17/2018Page 13 of 23 powered by Legistar™ 38 File#:18-0219, Item#: 3. Portion of Village Four Sectional Planning Area Plan Land Use Summary Land Use Planning Area Units Gross Acres Target Density Residential Single-Family Residential - 3-6 du/ac SF R-1 73 15.18 4.81 Multi-Family (Medium-High) Residential - 11-18 du/ac MF R-2a 110 7.91 13.91 MF R-2b 40 4.24 9.43 Multi-Family (High) Residential - 18-27 du/ac MF R-3 127 7.16 17.74 Residential Totals 350 34.49 10.15 Community Purpose Facility (CPF) CPF-1 CPF -1.21 - CPF-2 CPF -0.87 - CPF Sub-Total -2.08 - Open Space (OS) OS-1 OS -0.59 - OS-2 OS -3.03 - OS-3 OS -3.08 - OS-4 OS -1.57 - OS-5 OS -0.59 - OS-6 OS -3.11 - OS-8 OS -1.35 - OS-9 OS -6.87 - Total Private Open Space -20.19 - Open Space Preserve (OSP) OSP-7 Preserve -1.37 - OSP-10 Preserve -6.67 - OSP-11 Preserve -44.27 - OSP-12 Preserve -44.89 - Total Preserve Open Space -97.20 - Open Space Sub-Total -117.39 - Open Space (OS) Circulation Main Street Circulation -10.82 - Internal Streets Circulation -1.24 - Circulation Sub-Total -12.06 - Totals 350 166.02 - MSCP = Multiple Species Conservation Program *The exact amount of community purpose facility for the project and on the north side of Main Street will be calculated in conjunction with the processing of Site Plan approval for the High Density Residential (R-3). City of Chula Vista Printed on 5/17/2018Page 14 of 23 powered by Legistar™ 39 File#:18-0219, Item#: 3. Residential: As shown in the Table above,the proposed project would introduce 73 single-family low-to medium- density residential dwelling units on 15.18 acres,150 multi-family medium-to high-density residential dwelling units on 12.15 acres,and 127 multi-family high-density residential dwelling units on 7.16 acres,for a total of 350 units on approximately 34.49 acres of the project site.The overall density of the low-to medium-density residential units would range from 3 to 6 dwelling units per acre,medium- to high-density would range from 11 to 18 dwelling units per acre,and high-density would range from 18 to 27 dwelling units per acre.The overall target density for the residential portion of the proposed Portion of Village Four project is 10.15 dwelling units per acre.This is based upon a total of 350 units on a total of 34.39 residential acres. The Portion of Village Four Residential District was created to achieve the residential goals and policies of the Otay Ranch GDP.Three basic residential unit types are anticipated in the Portion of Village Four SPA:single-family,small-lot single-family/duplexes/townhomes,and attached multi- family units.One single-family Planning Area (R-1)is provided for traditional single-family home development.Planning Areas R-2a and R-2b are provided for duplexes/townhomes and other similar products that allow a variety of housing types.The R-3 Planning Area is anticipated to provide traditional multi-family products such as stacked flats and grouped parking. Community Purpose Facility: CVMC 19.48 requires the provision of 1.39 acres of land per 1,000 persons be zoned for Community Purpose Facilities (CPF)when creating a SPA Plan.This requirement may be reduced or complied with in an alternative manner based upon the availability of shared parking for the use or through the provision of an extraordinary public benefit provided certain requirements are met. Based on a population of 956,the project requires 1.31 acres of CPF.Approximately 2.08 acres is provided within the proposed project site dedicated for community purpose facility uses.The CPF areas are provided in the western portion of Planning Area R-2a and the eastern portion of Planning Area R-2b. As shown in in the Table above,CPF-1 would be a 1.21-acre site located on the east side of Street ‘A’and the south side of Street ‘C’within Planning Area R-2a,and the site is designed to accommodate future CPF-type development. CPF-2 would be a 0.87-acre site located on the west side of Street ‘A’in Planning Area R-2b.This site is planned for private recreation uses,and provides an overlook of a portion of Wolf Canyon and the MSCP. Open Space: Approximately 117.39 acres of the project site would be designated as open space,consisting of both common open space areas and preserve open space areas.Approximately 20.19 of those acres would be for fuel modification areas,perimeter slopes,and passive recreation,and approximately 97.20 acres would be dedicated to the MSCP Preserve. Open Space Preserve: The project requires the conveyance of 68.90 acres of Open Space Preserve.Approximately 97.20 acres of Open Space Preserve (Parcels OSP-7,OSP-10,OSP-11,and OSP-12)are available on-site for conveyance obligation;however,80.29 acres of on-site Preserve are obligated as conveyance land to satisfy the Quarry Reclamation plan requirements.Therefore,only 16.91-acres are available City of Chula Vista Printed on 5/17/2018Page 15 of 23 powered by Legistar™ 40 File#:18-0219, Item#: 3. land to satisfy the Quarry Reclamation plan requirements.Therefore,only 16.91-acres are available for on-site conveyance into the MSCP Preserve with the Portion of Village Four SPA and Tentative Map/Final Map.The remaining conveyance obligation acreage (approximately 51.99-acres)will be provided off-site in Village 14,in accordance with the Resource Management Plan (RMP) requirements concurrent with recordation of the Final Map.The area of land within Village 14 which will be conveyed is under the same ownership as the Portion of Village Four Project.An additional 9.98 acres of open space is provided as perimeter slope (OS-6 and OS-9)and consists of the Preserve Edge.The actual location of perimeter slopes,internal slopes,and the Preserve Edge is shown on the tentative map, which is being concurrently processed, and ultimately on Final Map(s). The Open Space Preserve includes all land designated as OSP (lots OSP-7 and OSP-10 through OSP-12),which would be dedicated to the Preserve Owner Manager (POM)comprised of the City of Chula Vista and the County of San Diego.Land use and design of these areas is regulated by the MSCP Subarea Plan and the RMP,as discussed in the SPA Plan.These areas are intended to remain unimproved with any uses highly restricted.Vegetation would consist of native plants that already occur on-site.Only under limited circumstances may certain amenities and facilities,as determined by the City to be compatible with the goals and objectives of the City’s MSCP Subarea Plan and Otay Ranch RMP,be permitted within the Preserve.Any proposed amenities or facilities within the Preserve shall be subject to the prior review and approval of the Director of Development Services. Other Open Space: Approximately 20.19 acres of open space within the proposed project site would consist of fuel modification areas,slopes,and passive recreation areas.Of this amount,a total of 9.98 acres of perimeter slopes would occur at the edges of development within the project site.Perimeter slopes refer to the slopes that occur at the edges of development within the SPA (lots OS-9 and portion of OS-6).The portions of these slopes that are located within 100-feet of the MSCP Preserve are part of the Preserve Edge and shall be subject to the requirements of Appendix B2 of the Otay Ranch Village Four SPA Plan FEIR17-0001 -The Village Four Preserve Edge Plan.The intent of the Preserve Edge is to create a buffer zone between proposed development and the Otay Ranch Preserve,thereby protecting the Preserve from human activity and non-native species.This area also includes dedicated right-of-way for a future access road to Otay Valley Regional Park.No structures would be permitted within perimeter slopes with the exception of walls and fences.Trails are permitted within perimeter slope areas,but are subject to the requirements outlined within the SPA Plan. The additional 10.20 acres of the overall 20.19 acres of open space consist of interior slopes which would occur at the edge of roadways and between planning areas within the project site.These lots include OS-1 through OS-5, OS-8, and a portion of OS-6. Regardless of zone,all interior slopes are subject to the facilities,landscaping,paving and surfaces, and lighting requirements outlined within the SPA Plan.Trails,benches,signage,walls,and fences would be permitted within the interior slope areas. Planned Community District Regulations In accordance with Section 19.48.090 of the CVMC,PC District Regulations are being established for the Portion of Village 4 in order to create development standards for each land use area and City of Chula Vista Printed on 5/17/2018Page 16 of 23 powered by Legistar™ 41 File#:18-0219, Item#: 3. the Portion of Village 4 in order to create development standards for each land use area and designation depicted on the site utilization plan map and planned community districts map.Said standards should include permitted land uses,lot coverage,height and bulk requirements.The proposed Zoning District Map and accompany land use and development regulations will ensure that the SPA Plan is implemented in accordance with the Otay Ranch GDP. A total of six zoning designations are proposed.They include:Single Family Residential,two types of Multi-Family Residential, Community Purpose Facility; Open Space and Open Space Preserve. There are three residential zoning designations:Single Family (SF-1)which permits densities of 3-6 units/acre;Residential Multi-Family Medium High (RM-1)which permits densities of 11-18 units per acre including small lot SF,alley homes,duplexes,townhouses,row-houses,courtyard/clusters;and stacked flats;Residential Multi-Family Medium High (RM-2)which permits densities of 18-27 units/acre including apartments and condominium-type in multiple-story buildings. There are two open space zoning designations:Open Space (OS)permits developed or usable open space and park uses;Open Space Preserve (OSP)permits natural,undisturbed and/or restored open space which is part of the Otay Ranch Preserve. There is also a CPF designation which allows uses established pursuant to Community Purpose Facilities requirements contained in Chapter 19.48 (P-C Planned Community Zone) of the CVMC. Design Guidelines The Design Guidelines set forth design parameters that pertain to the site planning,landscape architecture,architecture and signage for all developments within the Portion of Village 4.The Design Guidelines contain illustrations and requirements to implement the design ideas presented therein. Old California architectural styles provide the inspiration for the Portion of Village Four Design Plan. Old California architecture is represented in Spanish, Spanish Eclectic, and Mission styles. Public Facilities The SPA Plan describes the public facility needs associated with the Portion of Village Four land plan.More specifically,the SPA Plan addresses the following facility needs:water supply,sewer service,storm drain and runoff,dry utilities,development phasing,public schools,childcare facilities, police and fire service,library services,civic facilities,animal control facilities,integrated solid waste management, regional facilities, roads, and parks and open space. Water Service: Water service to the proposed project would be served by the Otay Water District.A water system(s) would be installed in accordance with the standards of the Otay Water District,and would be maintained and operated by the Otay Water District. Sewer Service: Sewer service for the proposed project would be provided by and connected to City sewers.The proposed project sewer would extend approximately 0.5 mile southwest from Main Street.All utilities would be underground,and easements would be provided as necessary.The City operates and maintains its own sanitary sewer collection system that connects to the City of San Diego’s City of Chula Vista Printed on 5/17/2018Page 17 of 23 powered by Legistar™ 42 File#:18-0219, Item#: 3. Metropolitan Sewer System. Drainage and Stormwater Facilities: The approximate 166-acre site is generally located on the northern flank of a ridgeline that slopes to the northwest toward Wolf Canyon,which eventually flows south toward the Otay River.Site elevations within the site range from approximately 150 feet above mean sea level at the storm drain outlet and sewer tie-in at the southwestern corner of the site,to approximately 610 feet above mean sea level in the southeastern corner.The project site lies within the watershed of the Otay River,a westerly flowing stream that drains an area of approximately 145 square miles. The proposed storm drain system and layout would be designed to address peak flows and to integrate water quality features needed to comply with the City’s Standard Urban Stormwater Mitigation Plan requirements for water quality.The proposed storm drain system would be designed to prevent the co-mingling of treated flows with untreated runoff. A water quality basin with accommodating storm drain lines and an off-site sewer main would be constructed south of Main Street on the southwest portion of the site.The proposed storm drain would extend approximately 0.5 mile southwest from Main Street. Dry Utilities: Dry utilities would be extended underground throughout the project site,primarily within streets and other public easements.Telephone,cable television,and internet service would be provided by companies such as Cox Communications,Time Warner,and AT&T.Gas and electric services would be provided by San Diego Gas and Electric. Schools: Five elementary schools in the Chula Vista Elementary School District serve Otay Ranch residents: Heritage Elementary,McMillin Elementary,Hedenkamp Elementary,Veterans Elementary,and Wolf Canyon Elementary.The closest elementary school to the project site is Wolf Canyon Elementary, approximately 0.6 mile east of the project site. Middle school and high school requirements would be met by the existing schools within the Sweetwater Union High School District.The schools that serve Otay Ranch residents,including the project site,are Rancho del Rey Middle School,Otay Ranch High School,and Olympian High.In addition to public schools,two private schools are located near the project site:High Tech High School and Mater Dei High School.Otay Ranch High School,Olympian High School,and Mater Dei High School are all less than 1 mile from the project site.Additionally,Southwestern College is located 2.3 miles north of the project site. Police and Fire Services: The Chula Vista Police Department currently provides police services within the City.Development of the project site would increase demand for police services.To meet Growth Management Ordinance service thresholds, additional personnel and facilities may be required at buildout of the project. The Chula Vista Fire Department would provide fire service for the project.Fire Station Number 7 is the closest fire station to the project site,located adjacent to the Village Two core at 1640 Santa Venetia Street.Additional fire equipment,staff,and facilities required to serve the increasedCity of Chula Vista Printed on 5/17/2018Page 18 of 23 powered by Legistar™ 43 File#:18-0219, Item#: 3. Venetia Street.Additional fire equipment,staff,and facilities required to serve the increased population as a result of the proposed project are identified in the Public Facilities Financing Plan for the proposed project. American Medical Response provides emergency medical services on a contract basis within the City.There are five American Medical Response South County paramedic units:two are located in Chula Vista,two are in National City,and one is in Imperial Beach.The proposed project would be served through this contract arrangement by the City of Chula Vista. Public Facilities Finance Plan and Fiscal Impact Analysis The Public Facilities Financing Plan (PFFP),prepared for the City by BWE and Atlantis Group Land Use Consultants,addresses all of the public facility needs associated with the Portion of Village Four. The PFFP has been prepared under the requirements of the City of Chula Vista’s Growth Management Program (GMP),Growth Management Ordinance (GMO)(CVMC 19.09)and Chapter 9 -Growth Management of the Otay Ranch GDP.The preparation of the PFFP is required in conjunction with the preparation of the SPA Plan to ensure that the development is consistent with the goals and policies of the City’s General Plan, GMP, GMO and the Otay Ranch GDP. The PFFP analyzes the demand for facilities based upon the project’s land use and transportation phasing plan.When specific thresholds are projected to be reached or exceeded based upon the analysis of the development of the project,the PFFP provides recommended mitigation necessary for continued compliance with the City of Chula Vista’s GMP,GMO and associated Quality of Life Threshold Standards.The PFFP does not propose a different development phasing from that proposed by the Portion of Village Four SPA Plan,but may indicate that the development should be limited or reduced until certain actions are taken to guarantee public facilities will be available or provided to meet the Quality of Life Threshold Standards. The PFFP provides an analysis of threshold requirements and a set of recommendations for public facility needs associated with traffic,police,fire and emergency services,schools,libraries,parks, water,sewer,drainage,air quality and climate protection,civic center,corporation yard,and other City administrative facilities. The PFFP also includes a Fiscal Impact Analysis (FIA)of the Portion of Village Four SPA Plan and phasing program that was prepared by HR&A Advisors.The Portion of Village Four FIA has been prepared using the City’s Fiscal Impact Framework to provide a consistent evaluation of all of the Chula Vista SPAs.The Framework utilizes the City of Chula Vista budget to identify and allocate variable revenues and costs that grow proportionally with incremental development,and sets up a consistent method to calculate revenue and cost impacts that may change according to the specific development program.Such variables include property taxes,vehicle license fees,sales tax receipts, and transient occupancy tax receipts. Based on the FIA and the assumptions contained therein,annual fiscal impacts are negative for Year 1.In the first year there is a net fiscal deficit of approximately $33,174,and turns positive in Year 2 with a surplus of approximately $28,736,followed by surpluses of approximately $61,993 in Year 3, $100,704 in Year 4, and $143,275 in Year 5. CVMC Section 19.09.060(J)states that “projects shall be conditioned to provide funding for periods where expenditures exceed projected revenues.”A condition has been added to the Tentative MapCity of Chula Vista Printed on 5/17/2018Page 19 of 23 powered by Legistar™ 44 File#:18-0219, Item#: 3. where expenditures exceed projected revenues.”A condition has been added to the Tentative Map and SPA conditions requiring that the applicant enter into an agreement to provide such funding. Please refer to the PFFP, which includes the FIA, for additional details (Appendix A, SPA Plan). Air Quality Improvement Plan The City has included a Growth Management Element (GME)in its General Plan.One of the stated objectives of the GME is to actively plan to meet federal and state air quality standards.This objective is incorporated into the GME’s action program.In addition,the City’s GMO requires that an Air Quality Improvement Plan (AQIP)be prepared for all major development projects (50 dwelling units or greater)as part of the SPA Plan process.The AQIP for the proposed project must comply with the City’s AQIP Guidelines. The purpose of the AQIP is to provide an analysis for air pollution impacts that would result from development of the Portion of Village Four and to demonstrate how the design for the Portion of Village Four reduces vehicle trips,maintains or improves traffic flow,reduces vehicle miles traveled and reduces direct or indirect GHG emissions.This AQIP also demonstrates how the Portion of Village Four has been designed to be consistent with the City’s Green Building Standards (CVMC 15.12)and Energy Code (CVMC 15.26)and represents the best available design in terms of improving energy efficiency and reducing GHG emissions. Fire Protection Plan The City requires the preparation and approval of a Fire Protection Plan (FPP)with every new SPA Plan.In addition,the California Fire Code requires a FPP with all new development based on its proximity to the Urban Wildlife Interface.The FPP prepared for this project provides measures for fire protection that meet California Fire and Building Codes or provide the Fire Department the option of accepting equivalent protection where the code cannot be strictly achieved.The primary focus of this FPP is providing an implementable framework for suitable protection of the planned project’s structures and inhabitants. Preserve Edge Plan The purpose of the Preserve Edge Plan is to identify allowable uses within appropriate land use designations for areas adjacent to the Otay Ranch Preserve.In accordance with Policy 7.2 of the Otay Ranch RMP,a Preserve Edge Plan is to be developed for all SPAs that contains areas adjacent to the Preserve.The Portion of Village Four will border the Otay Ranch Preserve on its northerly and westerly boundaries adjacent to Wolf Canyon.The Preserve Edge Plan area is a public or privately owned 100-foot strip of land adjacent to the Preserve.No structure other than fencing and walls shall be constructed within the 100-foot Preserve Edge. Water Conservation Plan The City of Chula Vista’s GMO requires all development projects with 50 or more dwelling units to prepare a Water Conservation Plan at the time of the SPA Plan preparation.The Water Conservation Plan prepared for the Portion of Village Four presents a review of presently available technologies and practices which result in water conservation in primarily residential development.The report presents water conservation measures that will be incorporated into the planning and design of the Portion of Village Four project,including the requirements outlined in the Landscape Water Conservation Ordinance. City of Chula Vista Printed on 5/17/2018Page 20 of 23 powered by Legistar™ 45 File#:18-0219, Item#: 3. Energy Conservation Plan In compliance with the Otay Ranch GDP requirements for a Non-Renewable Energy Conservation Plan,the proposed project incorporates transportation design features that encourage energy conservation.On a regional level,the proposed project is designed to accommodate bus rapid transit and rapid bus service.In addition,the project proposes a mix of residential densities to complement the mixed-use environment of the abutting Village Eight West community,and would provide a walkable and bikeable community that promotes pedestrian activity. Affordable Housing Plan The City of Chula Vista Housing Element,Guidelines to the Balanced Communities Policy,and the Otay Ranch GDP provide that ten percent (10%)of the total units will be affordable to low and moderate income households.The estimated Portion of Village Four affordable housing unit obligation is based on the Portion of Village Four SPA entitlement authorization of 350 units within the Village.The affordable units required for the Portion of Village Four are 17.5 low income and 17.5 moderate-income affordable units.A condition of approval has been included in the SPA and TM Resolutions requiring the applicant to enter into a “Balanced Communities Affordable Housing Agreement” to indicate how they will comply with this obligation. Agricultural Plan The 1993 Otay Ranch Program EIR requires the preparation of an agriculture plan concurrent with the processing and approval of a SPA plan where existing or future on-site agricultural uses may affect contemplated development.The Findings of Fact require that the agriculture plan indicate the type of agriculture activity allowed as an interim use and that it includes guidelines designed to minimize land use interface impacts related to noise,odors,dust,insets,rodents,and chemicals that may be produced or used by agricultural activities and operations. 4.Tentative Map A Tentative Subdivision Map is required for a division of land resulting in four or more lots or condominium units,pursuant to Section 2 of the City of Chula Vista Subdivision Manual.The proposed Tentative Map has been designed to comply with the lot design criteria of the Subdivision Manual.The proposed Tentative Map would be consistent with surrounding development and would support the design of a viable village with mixed uses that create a sense of strong place for residents of a Portion of Village 4 and the surrounding communities.Overall the subdivision design is in conformance with the City’s Subdivision Manual,Zoning Ordinance and other associated regulatory documents.The Tentative Map is consistent with the General Plan and Otay Ranch GDP densities established for the respective areas. A Tentative Map is proposed to implement the planned land use changes and subdivide 166.02 acres into parcels supporting up to 73 single-family residential units,277 multi-family residential units, approximately 2.08 acres of CPF uses,and 20.19 acres of open space uses for the Portion of Village 4 project.The analysis presented in the PFFP discussion,which addresses transportation, circulation,drainage,water,sewer,fire,schools,and parks on pages 22-23 of this staff report are also applicable to the proposed Tentative Map. Project Access: Primary regional access to the Portion of Village Four is from State Route 125 and Interstate 805 via Olympic Parkway and La Media Road.There is currently no public roadway access to or within theCity of Chula Vista Printed on 5/17/2018Page 21 of 23 powered by Legistar™ 46 File#:18-0219, Item#: 3. Olympic Parkway and La Media Road.There is currently no public roadway access to or within the site.An extension of Main Street is proposed in order to provide access within the project area. Proposed streets will conform to the guidelines set forth in the Portion of Village 4 SPA Plan and to applicable City of Chula Vista street design guidelines. Subdivision Design: The subdivision design consists of a total of 90 lots served by the extension of Main Street,a public street.The breakdown of these lots is as follows:76 residential lots (73 single-family residential lots and 3 multi-family lots);eight (8)master Homeowners Association (HOA)open space lots;four (4) open space preserve lots and two (2)CPF lots.The site design of the village follows the undulating landform of Wolf Canyon.Building sites have been created in terraces and streets are located within the topography to adhere to City horizontal and vertical curve standards. Grading: The site presently is vacant and consists of a hexagonally shaped lot.The site is topographically diverse,with elevations ranging from approximately 165 feet above mean sea level (msl),the low point at the storm drain outlet and sewer tie-in located just outside Otay River,to 610 feet msl at the high point along the southeastern boundary of the Portion of Village Four. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that no City Council Member has property holdings within 500 feet of the boundaries of the property which is the subject of this action.Consequently,this item does not represent 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. Code section 87100 et seq.). Staff is not independently aware,nor has staff 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.The Portion of Village Four Project supports the Economic Vitality goal,particularly City Initiative 2.1.3 (Promote and support development of quality master-planned communities).The SPA Plan implementation documents (the SPA Plan,Design Guidelines,and TSM)support the development of a high-quality master-planned community (as described above)adjacent to a park,jobs,transit,shopping,and other amenities,all within walking distance for residents.The Project implements the Strong and Secure Neighborhoods Strategic goal by providing construction of a development project in a manner that ensures code compliance, public health and safety of the community. CURRENT YEAR FISCAL IMPACT All costs associated with preparing and processing the GDP amendment,SPA Plan,EIR,Tentative Subdivision Map,and all supporting documents were borne by the applicant,resulting in no net fiscal impact to the General Fund or the Development Services Fund. ONGOING FISCAL IMPACT The FIA for the Portion of Village 4 SPA reflects the construction of 350 residential units.The FIACity of Chula Vista Printed on 5/17/2018Page 22 of 23 powered by Legistar™ 47 File#:18-0219, Item#: 3. The FIA for the Portion of Village 4 SPA reflects the construction of 350 residential units.The FIA estimates that for Year 1 of Project buildout,the net fiscal impact will be net negative (approximately $33,174)and by Year 2 of Project buildout,the fiscal impact to the City would be net positive (approximately $28,736),with increasingly positive impacts through buildout.At buildout (Year 5),the Project is anticipated to generate a positive net fiscal impact of approximately $143,275 annually. Fiscal Impact Deficit Fee In order to mitigate the year one deficit,based upon a total of 350 units,a fiscal impact deficit mitigation amount of $95 per unit is indicated in the current analysis,which will be collected prior to building permit issuance (see Attachment 9,Draft City Council PCM Resolution,SPA Condition of Approval No 8)and Attachment 10,Draft City Council TM Resolution,Tentative Map Condition of Approval No. 23). Staff Contact: Jeff Steichen, Associate Planner City of Chula Vista Printed on 5/17/2018Page 23 of 23 powered by Legistar™ 48 SECOND READING AND ADOPTION ORDINANCE No._______ ORDINANCE OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS FOR OTAY RANCH PORTION OF VILLAGE FOUR WHEREAS, the property which is the subject matter of this Ordinance is identified as Exhibit "1" attached hereto and incorporated herein by this reference and commonly known as Otay Ranch Portion of Village Four, which consists of approximately 166.0 acres located on the east side of Wolf canyon, straddling the future extension of Main Street from la Media Road to the north and to Heritage Road to the southeast (the “Property”); and WHEREAS, an application (PCM-15-07) to consider a new Sectional Planning Area (SPA) Plan, including Planned Community District Regulations for the Portion of Village Four (the “Project”) was filed with the City of Chula Vista Development Services Department on March 12, 2015, by Otay Valley Quarry, LLC (the “Applicant” and “Owner”); and WHEREAS, the Project is intended to ensure that the Portion of Village Four SPA Plan is prepared in accordance with the Otay Ranch General Development Plan (GDP) to implement the City of Chula Vista General Plan for Eastern Chula Vista to promote the orderly planning and long term phased development of the Otay Ranch GDP and to establish conditions which will enable Otay Ranch Village Portion of Four to exist in harmony within the community; and WHEREAS, the development of the Property has also been the subject matter of a concurrently processed Otay Ranch General Development Plan Amendment (GDPA) (MPA17- 0006), approved by the City Council; and WHEREAS, the Project is established pursuant to Title 19 of the Chula Vista Municipal Code, specifically Chapter 19.48 Planned Community (PC) Zone, which is applicable to the Otay Ranch Portion of Village Four SPA Land Use Plan; and WHEREAS, the Project establishes a Planned Community District Regulation Code applicable to the Residential, Open Space and Parks, and Community Purpose Facility Districts, located in the Otay Ranch Portion of Village Four SPA Land Use Plan; and WHEREAS, the City’s Development Services Director has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and determined that there is substantial evidence, in light of the whole record before the City of Chula Vista, that the Project may have a significant effect on the environment; therefore, the Development Services Director has caused the preparation of an Environmental Impact Report, EIR 17-0001; and WHEREAS, the development of the Property relied on the Otay Rach Village Four SPA Plan Project Environmental Impact Report No. 17-0001, SCH # 2016041080 (EIR-17-001); and the Findings of Fact and Mitigation Monitoring and Reporting Program, Certified by the City Council on xxxxxxx; and 49 SECOND READING AND ADOPTION WHEREAS, the Planning Commission set the time and place for a hearing on said Project and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City and its mailings to property owners within 500 feet of the exterior boundaries of the Project site at least ten days prior to the hearing; and WHEREAS; the hearing was held at the time and place as advertised in the City Council Chambers located at 276 Fourth Avenue, and said hearing was thereafter closed; and WHEREAS; a duly noticed public hearing was scheduled before the City Council of the City of Chula Vista to approve the Project; and WHEREAS, the proceedings and any documents submitted to the Planning Commission and City Council as the decision makers shall comprise the entire record of the proceedings. NOW, THEREFORE, THE CITY COUNCIL of the City of Chula Vista does hereby find and ordain as follows: I.PLANNING COMMISSION RECORD That the proceedings and all evidence introduced before the Planning Commission at their public hearing and the Minutes and Resolutions resulting therefrom are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision-makers, shall comprise the entire record of the proceedings. II. ACTION That the City Council hereby adopts an Ordinance approving the Otay Ranch Portion of Village Four SPA Planned Community District Regulations, finding that they are consistent with the City of Chula Vista General Plan, the Otay Ranch General Development Plan and all other applicable Plans; as set forth in Resolution PCM-xxxxx adopting the Portion of Village Four SPA Plan, and that the public necessity; convenience, general welfare and good planning and zoning practice support their approval and implementation. III. 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. 50 SECOND READING AND ADOPTION IV. 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. V. EFFECTIVE DATE This Ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. VI. 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 Broughton, FASLA Glen R. Googins Development Services Director City Attorney 51 SECOND READING AND ADOPTION EXHIBIT “1” 52 City of Chula Vista Staff Report File#:18-0085, Item#: 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FOURTH AMENDMENT TO A MEMORANDUM OF UNDERSTANDING WITH THE SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG)REGARDING AN ENVIRONMENTAL DOCUMENT FOR GRADE SEPARATIONS AND STATIONS TO THE LIGHT RAIL TROLLEY’S BLUE LINE RECOMMENDED ACTION Council adopt the resolution. SUMMARY On June 19, 2012, per Resolution 2012-118, the City of Chula Vista entered into a Memorandum of Understanding (MOU) with SANDAG for planned improvements through Chula Vista’s light rail trolley and freight rail corridor. The MOU allows the City to transfer funds and use SANDAG staff and their consultants to complete a Project Report and Environmental Document (PR/ED) for the grade separation project at the Palomar Street crossing. It is necessary to amend the MOU to add the optional tasks for the consultant and increase the budget transfer amount allowed to SANDAG from $1,034,000 to $1,175,000, an increase of $141,000. No additional appropriation is required. ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15061(b)(3);Section 15301 (Existing Facilities);and Section 15303 (New Construction or Conversion of Small Structures). 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 Categorical Exemption pursuant to State CEQA Guidelines Section 15061(b)(3);Section 15301 (Existing Facilities);and Section 15303 (New Construction or Conversion of Small Structures).Thus, no further environmental review is required. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION On June 19,2012,per Resolution 2012-118,the City of Chula Vista entered Memoranda of Understanding (MOU)with SANDAG to prepare an environmental document that will consider project alternatives for grade-separating the Blue Line Light Rail Trolley and freight rail crossing at Palomar Street and Industrial Blvd.This location is the highest ranked grade-separation crossing proposed in the SANDAG Regional Transportation Plan (RTP).The MOU allows the City to transfer funds up to $750,000 and use SANDAG and their consultants to complete a Project Report &Environmental City of Chula Vista Printed on 5/17/2018Page 1 of 4 powered by Legistar™ 53 File#:18-0085, Item#: 4. $750,000 and use SANDAG and their consultants to complete a Project Report &Environmental Document (PR/ED). The Palomar Street Grade Separation project is currently included in the 2035 Blue Line improvements identified in the Regional Transportation Plan.However,there may be an opportunity to accelerate the project since SANDAG is currently beginning the process of updating the transportation networks and expect to have a new Regional Transportation Plan approved in late 2019. On April 20,2018,the SANDAG Transportation Committee discussed the Capital Program Budget: Environmental and Design Work Set-Aside.The discussion focused on prioritizing a list of highly ranked regional projects and getting the PR/ED phase and design phases completed so that they can compete well for the construction phase funding opportunities.This strategy/process has been used successfully in leveraging Transnet funding to secure additional State and Federal funds for construction. SANDAG’s discussion report mentioned that Chula Vista’s Palomar Street Rail Grade separation project could be recommended for $5M in design costs for FY20 while the E Street/F Street/H Street rail grade separation project for $2M PR/ED in FY21 &$3M in FY22 (Attachment #1).The Committee expressed concern over the pending November 2018 repeal of SB1 (RMRA -Roadway Maintenance &Rehabilitation Act of 2017)since that would reduce regional funding by an estimated $195M.If SB1 is repealed,there would be a delay implementing the regional transportation program which would include the funding of the grade separation projects. To complete the PR/ED phase of work,additional analysis of the proposed adjacent private development impacts,the Right-of-Way needs and,the utility relocation requirements is needed.The additional work will also provide a better cost estimate for programming the design and construction phases.To complete these additional tasks,City staff recommends approving the fourth MOU amendment (Attachment #2). The current schedule will complete the PR/ED phase in early 2019. Descriptions of the additional effort needed to complete the PR/ED phase of this grade separation project are as follows: ·Additional traffic analysis work was needed due to updates on the regional activity based transportation model used to forecast the growth and project impacts over a larger area than the work zone including the pending vacant parcel development. ·Refine the Preliminary Environmental Study (PES)form due to adjustments needed once the preferred alignment and traffic impact areas were defined and impacts identified over a larger area. ·Preliminary Geometric Drawings.With the pending development at the southwest quadrant of Industrial Boulevard and Palomar Street,this area will be fully built-out.This task will be important to predict accurate construction costs for the grade separation and identify the temporary construction easements needed and wet and dry utilities that need to be relocated. ·Public Outreach.Refine the task.The removal of the Industrial Blvd/Palomar Street connection and the importance of public review &comment will require an adjustment to the scope of work.Public information and an outreach campaign needs to be done including City of Chula Vista Printed on 5/17/2018Page 2 of 4 powered by Legistar™ 54 File#:18-0085, Item#: 4. presentations to stakeholders and the Safety Commission. ·SANDAG administrative fees.This is a regional project being administered by SANDAG and requires SANDAG staff support for Project Management,Communications/Public Outreach, engineering,environmental review and traffic modeling.As the technical studies are almost completed,the draft environmental document must be prepared by the consultant and reviewed by SANDAG staff.Chula Vista staff is still involved in the document review,but a higher effort of work is needed by SANDAG staff. The proposed task order change has been negotiated and would increase the budget transfer amount by an additional $141,000 above the existing maximum of $1,034,000 to $1,175,000. Consultant costs are fixed at $80,000,SANDAG staff costs are up to a maximum increase not to exceed $61,000.Chula Vista staff costs are the balance of the CIP budget at approximately $50,000 and are not part of the MOU amendment. No appropriation of funds is required since there are sufficient funds available in the CIP budget.City staff is coordinating with SANDAG staff to advance design phase funding to coincide with the completion of the PR/ED phase. Current Schedule Goals: ·Staff will complete the environmental document in early 2019. ·SANDAG staff is in the process of allocating $5M for the design phase in FY20. ·Complete design in FY22. ·Pending construction funding approval, construction could commence in FY23. ·Palomar Street Grade Separation completed in FY25. 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.The overall Palomar Grade Separation project supports the Strong and Secure Neighborhoods goal.The project facilitates mixed-use,transit oriented development,which improves traffic circulation and addresses the needs for transit operations as well as all modes of transportation for residents and visitors of the City alike. CURRENT YEAR FISCAL IMPACT CIP STM-361 is funded with Federal funds and a 20%minimum match requirement provided by local TransNet funds. Sufficient funding is available in STM-361 to cover project costs; therefore, no additional appropriation is required. ONGOING FISCAL IMPACT The MOU amendment does not require any additional on-going expenses. ATTACHMENTS City of Chula Vista Printed on 5/17/2018Page 3 of 4 powered by Legistar™ 55 File#:18-0085, Item#: 4. 1 List of Potential Projects to Advance Completion of Environmental and Design Work 2 Amendment 4 to MOU SANDAG Contract 5004169 Staff Contact: Francisco X. Rivera, Principal Civil Engineer, Engineering & Capital Projects Dept. City of Chula Vista Printed on 5/17/2018Page 4 of 4 powered by Legistar™ 56 57 AMENDMENT 4 TO SANDAG CONTRACT NUMBER 5004169 MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND THE CITY OF CHULA VISTA This Amendment No. 4 to SANDAG Contract No. 5004169 concerns a memorandum of understanding (MOU) by and between the San Diego Association of Governments (hereinafter referred to as “SANDAG”), 401 B Street, Suite 800, San Diego, California, and the City of Chula Vista (“Chula Vista”): A.Under the original MOU dated JUNE 20, 2013, SANDAG and Chula Vista worked cooperatively on a project report and environmental document (PR/ED) for a rail/highway grade separation project at Palomar Street in Chula Vista (Project) and were the co-lead agencies in administrating the project in cooperation with input from and in cooperation with MTS and Caltrans. B.This Amendment No. 4 is to amend the SANDAG budget for its efforts related to the project report and environmental document (PR/ED). NOW, THEREFORE, it is agreed as follows: 1. Section 2 of the MOU under the heading “AGREEMENT” shall be amended to instead read as follows: The SANDAG budget for its efforts related to the PR/ED shall not exceed $1,175,000 ($750,000 + $232,000 + $52,000 + $141,000). However, in the event that SANDAG needs to exceed this amount, Chula Vista will meet with Caltrans and SANDAG to discuss whether an amendment to this MOU is appropriate. In no event shall SANDAG move forward with the PR/ED until the parties are able to identify sufficient funds to complete the projected PR/ED scope of work, nor shall SANDAG be liable for any level of effort in excess of $1,175,000 unless an amendment is agreed to by the parties. 2. Section 3 of the MOU under the heading “AGREEMENT” shall be amended to read as follows: SANDAG shall receive an amount not to exceed $1,175,000 for PR/ED costs. All expenses incurred by SANDAG for the ED, including consultant costs, claims, litigation, administrative costs, or other liability, shall be reimbursed by Chula Vista. 3. Section 4 of the MOU under the heading “AGREEMENT” shall be amended to instead read as follows: The funds for the ED shall be expended as follows: a.An amount not to exceed $1,045,000 for consultant services, including SANDAG administrative costs. b.An amount not to exceed $130,000 as consultant contract contingency. 4. Section 12 of the MOU under the heading “Parties Mutually Agree” shall be amended to instead read as follows: That unless it is amended by the parties in writing, this MOU shall terminate on June 30, 2020, or on such earlier date as the Parties agree to in writing. 5. All other provisions of said MOU not amended herein, shall remain in full force and effect.58 6. This Amendment 4 may be executed and delivered by facsimile signature and a facsimile signature shall be treated as an original. This Amendment No. 4 may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same Amendment. IN WITNESS WHEREOF, these parties have executed this Amendment 2 effective this _____ day of _______ 2018. SAN DIEGO ASSOCIATION OF GOVERNMENTS CITY OF CHULA VISTA KIM KAWADA Chief Deputy Executive Director MARY CASILLAS-SALAS Mayor APPROVED AS TO SUFFICIENCY OF FORM AND LEGALITY: APPROVED AS TO SUFFICIENCY OF FORM AND LEGALITY: Office of the General Counsel Glen R. Googins, City Attorney 59 C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@CC0E7B17\@BCL@CC0E7B17.doc RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FOURTH AMENDMENT TO A MEMORANDUM OF UNDERSTANDING WITH THE SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) REGARDING AN ENVIRONMENTAL DOCUMENT FOR GRADE SEPARATIONS AND STATIONS TO THE LIGHT RAIL TROLLEY’S BLUE LINE WHEREAS, on June 19, 2012, per Resolution 2012-118, the City of Chula Vista entered a Memoranda of Understanding (MOU) with SANDAG for planned improvements through Chula Vista’s light rail trolley and freight rail corridor; and WHEREAS, the initial MOU for STM-361, SANDAG Contract Number 5004169, is for the purposes of preparing an environmental document that will consider project alternatives for grade-separating the Blue Line Light Rail Trolley crossing at Palomar Street and commensurate station improvements; and WHEREAS, the MOU allows SANDAG and their consultants to complete a Project Report & Environmental Document (PR/ED) that will help prepare the Engineer’s Construction Cost Estimate and would help expedite completion of the design phase which would be funded as a separate item by SANDAG; and WHEREAS, this location is the highest ranked grade-separation crossing proposed in the SANDAG Regional Transportation Plan (RTP); and WHEREAS, on December 16, 2014, the City Council adopted Resolution 2014-253 approving the first amendment to the MOU to extend the initial MOU expiration date from December 31, 2014 to June 30, 2016 to complete the environmental document, the final project invoicing, accounting and close out documentation to Caltrans and Federal Highway Administration; and WHEREAS, on November 3, 2015, the City Council adopted Resolution 2015-248 approving the second amendment to the MOU to perform additional tasks related to the Project Report and Environmental Document (PR/ED) such as additional public outreach, photo simulations and traffic analysis of the various alternatives being considered and extended the expiration date from June 30, 2016 to June 30, 2020, in order to coincide with the reversion date of the federal funds; and WHEREAS, on July 11, 2017 the City Council adopted Resolution 2017-124 approving the third amendment to the MOU to provide for additional consultant services such as, groundwater monitoring and technical analysis needed for the traffic analysis of the various geometric alternatives for the alternative that lowers Palomar Street under all rail lines prior to determining it as the preferred alternative, but the ground watering task could not be performed 60 Resolution No. Page 2 due to additional traffic considerations needed for the technical document to address all concerns that were determined to need addressing as part of the preferred alternative; and WHEREAS, approving the fourth amendment to the MOU will provide for additional SANDAG staff costs, coordination with the adjacent vacant parcel pending development, refine the public outreach efforts based on the preferred alternative that lowers Palomar Street under all rail lines and keeps Industrial Blvd at the current grade without an intersection at Palomar Street determining it as the preferred alternative; and WHEREAS, approving the fourth amendment to the MOU will amend the SANDAG budget by $141,000 from $1,034,000 to $1,175,000 for its efforts related to the Project Report and Environmental Document (PR/ED) so that the consultant costs will be an additional $80,000 and the SANDAG staff costs will be up to an amount not to exceed $61,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the fourth amendment to the Memorandum of Understanding between the City and the San Diego Association of Governments for contract number 5004169 regarding environmental document work for the Blue Line Light Rail crossing at Palomar Street, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes the Mayor to execute the amendment. Presented by William S. Valle Director of Engineering & Capital Projects Approved as to form by Glen R. Googins City Attorney 61 City of Chula Vista Staff Report File#:18-0196, Item#: 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN APPLICATION FOR GRANT FUNDS FROM THE COUNTY OF SAN DIEGO NEIGHBORHOOD REINVESTMENT PROGRAM FOR THE BAYSHORE BIKEWAY CANVASES OF CREATIVITY MURAL PROJECT RECOMMENDED ACTION Council adopt the resolution. SUMMARY The Bayshore Bikeway Canvases of Creativity Mural Project (mural project)proposes the design and curation of a community mural on an almost 1,000 foot long blank wall surface that runs along a segment of the Bayshore Bikeway (located between L Street and Palomar Street).The City of Chula Vista spends thousands of dollars annually cleaning up graffiti along this portion of the Bayshore Bikeway.The grant request from the County Neighborhood Reinvestment Program (NRP)would fund part of the anticipated costs of the public art mural project with the remaining portion funded from a variety of in-kind donations. ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. 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 Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities)of the State CEQA Guidelines. Thus, no further environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Despite on-going City cleanup efforts and most recently,the cleanup efforts of dozens of Beautify Chula Vista volunteers,the long blank wall located along the Bayshore Bikeway between L Street and Palomar Street continues to be extensively tagged.Case studies of other communities show that murals help build a sense of community and transform highly tagged areas into a legitimate canvases of public art that are rarely defaced by taggers.The proposed mural project would be planned, designed,and implemented in collaboration with the City's Cultural Arts Division,the Public Works Department,professional artists,Bayshore Bikeway stakeholders,students from surrounding schools,and members of the community at large.The Neighborhood Reinvestment Program Grant City of Chula Vista Printed on 5/17/2018Page 1 of 2 powered by Legistar™ 62 File#:18-0196, Item#: 5. schools,and members of the community at large.The Neighborhood Reinvestment Program Grant would assist in funding a large portion of the costs,including design development,project management, site preparation, artist fees, and equipment, materials, paint and paint supplies. 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.The City’s Strategic Plan has five major goals:Operational Excellence,Economic Vitality,Healthy Community,Strong and Secure Neighborhoods and a Connected Community.The curation of a public art mural along the Bayshore Bikeway,would meet two of the City’s Strategic Plan Goals.including;Goal 5,Strategy 5; to encourage residents to engage in civic activities,and Strategy 5.2;to provide opportunities that enrich the community’s quality of life.This project will help build a sense of community identity and pride.Through community input,collaboration,and participation the consistently tagged wall will be transformed into a highly visible and frequently visited public art destination.The curation of the mural will transform this large blank heavily vandalized wall into a popular public art destination that will be visited by both residents and visitors, while reducing on-going clean-up costs. CURRENT YEAR FISCAL IMPACT There are no current fiscal year impacts associated with applying for this grant. ONGOING FISCAL IMPACT If the NRP grant request is approved by the County of San Diego,the grant monies would fund a large portion of the anticipated project costs. No additional general fund impacts are anticipated. ATTACHMENTS NONE Staff Contact: Lynnette Tessitore; Cultural Arts Manager City of Chula Vista Printed on 5/17/2018Page 2 of 2 powered by Legistar™ 63 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN APPLICATION FOR GRANT FUNDS FROM THE COUNTY OF SAN DIEGO NEIGHBORHOOD REINVESTMENT PROGRAM FOR THE BAYSHORE BIKEWAY CANVASES OF CREATIVITY MURAL PROJECT WHEREAS, the County of San Diego Neighborhood Reinvestment Program provides funding for non-profit corporations and public agencies for certain specified purposes; and WHEREAS, the City of Chula Vista wants to file an application with the County of San Diego for Neighborhood Reinvestment Program funding for the Bayshore Bikeway Canvases of Creativity Mural Project (mural project); and WHEREAS, the mural project proposes the design and curation of a community mural on an almost 1,000 foot long blank wall surface that runs along a segment of the Bayshore Bikeway (located between L Street and Palomar Street); and WHEREAS, the City of Chula Vista spends thousands of dollars annually cleaning up graffiti along this portion of the Bayshore Bikeway; and WHEREAS, despite on-going City cleanup efforts and most recently, the cleanup efforts of dozens of Beautify Chula Vista volunteers, the blank wall continues to be tagged; and WHEREAS, case studies of other communities show that murals help build a sense of community and transform highly tagged areas into legitimate canvases of public art that are rarely defaced by taggers; and WHEREAS, the Neighborhood Reinvestment Program Grant would a large portion of the anticipated costs of the mural project with the remaining portion to be funded from a variety of in-kind donations; and WHEREAS, 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 Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is required. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves an application for grant funds from the County of San Diego Neighborhood Reinvestment Program for The Bayshore Bikeway Canvases of Creativity Mural Project. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it: 64 1. Confirms that it is a public agency under the laws of the State of California; and 2. Authorizes the City Manager and his designees to sign a grant agreement, and all other necessary documents, related to the County of San Diego for Neighborhood Reinvestment Program grant for the 2017-2018 fiscal year. Presented by Approved as to form by Iracsema Quilantan Glen R. Googins Public Works Director City Attorney 65 City of Chula Vista Staff Report File#:18-0201, Item#: 6. A.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF COUNCIL POLICY NO.220.01,THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES;AMENDING THE EXISTING POLICY;AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER B.INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2018 RECOMMENDED ACTION Council adopt the resolution and accept the report. SUMMARY Per California Government Code Section 53607,on an annual basis the City Council may delegate to the City Treasurer the authority to conduct the investment activities of the City.And per Government Code Section 53646,the City Treasurer may annually present the City’s Investment Policy to the City Council to reaffirm or make any changes to the existing policy.The Investment Policy provides guidelines for the investment of idle funds and affords the City various investment opportunities,as long as the investment is deemed prudent and is allowable under Government Code Section 53600, et seq.The City received the Certificate of Excellence Award from the Association of Public Treasurers United States and Canada (APT-US&C)in August 2007 for its Investment Policy,and most recently,the Policy was reviewed and adopted by City Council on May 23,2017.At this time, staff is recommending changes to the policy to clarify policy requirements and to update Government Code references. Transmitted herewith is the City’s investment report for the quarter ended March 31,2018.To meet the reporting requirements set forth in the California Government Code Sections 53600 et seq.and the City of Chula Vista Investment Policy and Guidelines,a separate report was distributed to the City Council in April. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA)and has determined that the activity is not a “Project”in accordance with Section 15378(b)(5)of the State CEQA Guidelines because it involves only amendment of a Council Policy and Guidelines regarding the City’s Investment Policy,delegation of investment activity authority to the Director of Finance/Treasurer and acceptance of the Quarterly Investment Report;therefore it is an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environmental;therefore,pursuant to Section 15060(c)(3)of the State CEQA Guidelines the activity is not subject to CEQA.Thus,no environmental review is necessary. Environmental Notice The activity is not a “Project”as defined under Section 15378 of the California Environmental Quality City of Chula Vista Printed on 5/17/2018Page 1 of 3 powered by Legistar™ 66 File#:18-0201, Item#: 6. 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 BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Investment Policy The City's Investment Policy and Guidelines was last amended on May 23,2017 by Resolution 2017- 078 and was intended to provide direction for the prudent investment of temporarily idle cash,and for maximizing the efficiency of the cash management process.The stated goal is to enhance the economic condition of the City while ensuring the safety of funds invested.The policy includes a list of specific investment instruments available under the relevant California Government Code sections, 53600 et seq.and 53635.Each investment transaction is made in the context of first ensuring the "safety"of principal,second,investing only for that timeframe that the cash is not needed for operational purposes ("liquidity"),and last seeking the highest return possible ("yield")provided that the first two factors are met. Per section 18.0 of the Investment Policy,each fiscal year the Finance Director/Treasurer shall provide a copy of the Policy for adoption by the City Council.At this time,staff is recommending changes to the policy to clarify policy requirements and to update Government Code references. Quarterly Investment Report The total cash and investment portfolio held by the City as of March 31,2018 was $261,895,654 and total cash and investments held by the trustees was $149,786,734. The cash and investments held by the City are composed of the following components:Managed Investment Portfolio ($152,310,188),State of CA Local Agency Investment Fund ($1,666,217), County of San Diego Pooled Investment Fund ($52,658,304),Cash/Time Deposits ($54,376,859), and accrued interest on investment ($884,086).Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted by Resolution 2017-078 on May 23, 2017. During the quarter,four investments matured totaling $9,550,000.Four purchases were made to replace those investments and invest idle cash.Purchased investments include:one certificate of deposit issued by Credit Suisse ($1,500,000);and three commercial paper issued by BNP Paribas ($3,000,000),Toyota Motor Credit Corp ($3,500,000),and Credit Agricole ($3,000,000).Public Financial Management (PFM),the City's investment advisor,continues to monitor the portfolio and will make recommendations as financial and economic conditions warrant.There is no further activity to report on other than routine investments by the City's fiscal agents. In March,the Federal Open Market Committee (FOMC)raised the Fed Funds target range by 0.25% to a range of 1.50%to 1.75%.Two-year Treasuries yielding 1.89%at the beginning of the quarter City of Chula Vista Printed on 5/17/2018Page 2 of 3 powered by Legistar™ 67 File#:18-0201, Item#: 6. ended higher at the end of the quarter at 2.27%. As of March 31,2018,the Yield to Maturity at Cost on the Managed Investment Portfolio was 1.62%, which was an increase of seven basis points from the previous quarter. At the end of this quarter,the weighted average maturity of the Managed Investment Portfolio was 1.17 years, which is a decrease from 1.37 the previous quarter and is within the Council Policy. DECISION-MAKER CONFLICT Staff has determined that the action contemplated by this item is ministerial in nature and does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations section 18702.4(a).Consequently,this item does not present a conflict under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware,nor has staff 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.The investment portfolio supports the Operational Excellence goal as it seeks to maintain the safety and liquidity of the City’s cash while contributing investment earnings to the bottom line. CURRENT YEAR FISCAL IMPACT Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio,the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact by this action. ATTACHMENTS 1.Summary of Cash and Investments as of March 31, 2018 2.PFM Investment Report for the Quarter Ended March 31, 2018 3.Council Policy 220-01 Investment Policy and Guidelines Staff Contact: David Bilby, Director of Finance/Treasurer, Finance Department Lisa Partee, Fiscal Management Analyst, Finance Department City of Chula Vista Printed on 5/17/2018Page 3 of 3 powered by Legistar™ 68 % of Investment Type Par Value Market Value Book Value Portfolio Managed Investment Portfolio BNY Custodial Cash Account $1,655,240 $1,655,240 $1,655,240 0.40% U.S. Treasury Bond/Note 64,930,000 64,153,145 64,916,418 15.77% Federal Agency Collateralized Mtg Ob. 527,771 524,494 533,056 0.13% Federal Agency Bond/Note 3,000,000 2,996,052 3,000,000 0.73% Corporate Note 41,451,000 41,320,277 42,025,892 10.21% Commercial Paper 21,500,000 21,316,969 21,227,347 5.16% Certificate of Deposit 14,500,000 14,390,102 14,499,514 3.52% Asset Back Security/Collateralized Mtg Ob. 4,451,700 4,419,357 4,452,721 1.08% Managed Investment Portfolio Subtotal 152,015,711 150,775,637 152,310,188 37.00% Pooled Investments State of CA Local Agency Investment Fund 1,666,217 1,662,115 1,666,217 0.40% County of San Diego Pooled Investment Fund 52,658,304 52,240,197 52,658,304 12.79% Pooled Investments Subtotal 54,324,521 53,902,312 54,324,521 13.20% Cash/Time Deposits 54,376,859 54,376,859 54,376,859 13.21% Accrued Interest 884,086 884,086 884,086 0.21% Total Cash & Investments Held by the City $261,601,177 $259,938,893 $261,895,654 63.62% Held by Bank Trustee/Fiduciary Funds (1) Investment Agreements 0 0 0 0.00% Mutual Funds 103,368,764 103,339,179 103,368,764 25.11% Cash with Fiscal Agents 0 0 0 0.00% Restricted Cash 800,082 800,082 800,082 0.19% U.S. Government 45,617,887 45,617,887 45,617,887 11.08% Total Held by Bank Trustee/Fiduciary Funds $149,786,734 $149,757,148 $149,786,734 36.38% Total Portfolio $411,387,911 $409,696,041 $411,682,387 100.00% Notes: 1. Reflects bond proceeds and tax levy revenues held by trustee in accordance with bond covenants. 2. Par value is the principal amount of the investment on maturity. 3. Market values contained herein are received from sources we believe are reliable, however we do not guarantee their accuracy. 4. LAIF market value on the PFM statement does not include the market value factor as included in the market value above. 5. COSD Pooled Investment Fund market value on the PFM statement does not include the market value factor as included in the market value above. 6. Book value is par value of the security plus or minus any premium or discount and accrued interest included in purchase price. Summary of Cash and Investments as of March 31, 2018 City of Chula Vista 69 City of Chula Vista Quarter Ended March 31, 2018 Security Type1 Market Value2 % of Portfolio Policy Limits U.S. Treasuries $64,153,145 31% 100% Federal Agencies $2,996,052 1% 100% Federal Agency CMOs $524,494 <1%100% Municipal Obligations $0 0% 100% Commercial Paper $21,316,969 10% 25% Negotiable CDs $14,390,102 7% 30% Corporate Notes $41,320,277 20% 30% Asset-Backed Securities $4,419,357 2% 20% Money Market Fund $1,655,240 1% 20% San Diego County Pool $52,658,304 26% 100% LAIF $1,666,217 1% $65 Million Totals $205,100,158 100% Par Value Amortized Cost 1Q18 Acrual Basis Earnings $617,281 Weighted Average Maturity (years) Fiscal Year 2017-18 Initial Earnings Forecast $2,200,333 Effective Duration (years) Fiscal Year 2017-18 Current Earnings Forecast $2,345,945 Yield to Maturity at Cost Variance to Initial Forecast $145,612 Yield to Maturity at Market Notes: 1. End of quarter trade-date market values of portfolio holdings, excluding accrued interest. Percentages may not add to 100% due to rounding. 2. Balances held in LAIF and the San Diego County Investment Pool are not managed by PFM Asset Management LLC. 4. The "Not Rated" category comprises asset-backed securities rated Aaa by Moody's. 5. Yields, weighted average maturity, and effective duration exclude balances not managed by PFM Asset Management LLC. 6. Accrual earnings forecast are calculated on an amortized cost, settle basis. Projected earnings for January 2018 through June 2018 were based on portfolio holdings as of December 31, 2017, $149.7 million par. Earnings for October 2017, November 2017 and December 2017 are based on actual accrual basis earn ings. As current holdings mature, proceeds are assumed to be reinvested in a) a maturity that reblances the portfolio near its current duration, 1.27 as of December 31, 2017. b) at a yield based on assumed maturity and US Treasury curve, as of January 11, 2017. Projected earnings assume callable securities trading at a premium are called at their next call date and are subsequently reinested at the assumptions noted above. We cannot gaurantee earnings forecasts, which are subject to market fluctuations, changes in cash flows, and reinvestment rates. Past performace in not indicative of future results. 2.30% Summary of Portfolio Characteristics and Key Statistics Sector Distribution Credit Quality (S&P Ratings)3,4 Maturity Distribution Key Statistics5 Earnings6 $206,340,232 $206,414,869 1.17 1.08 1.62% 3. Citigroup, Goldman Sachs, and Morgan Stanley Corporate Notes rated BBB+ by S&P and rated A by Fitch. U.S. Treasuries 31% Federal Agencies 1% Federal Agency CMOs <1%Commercial Paper 10% Negotiable CDs 7% Corporate Notes 20% Asset-Backed Securities 2% Money Market Fund 1% San Diego County Pool 26% LAIF 1% AAA 2% AA 37% A 18% BBB 1%A-1 (Short- term) 13% Money Market Fund 1% AAAf/S1 (San Diego County) 26% Not Rated 1% Not Rated (LAIF) 1% 43% 19% 29% 7% 3%0% 0% 10% 20% 30% 40% 50% Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 YearsPercentage of Total Portfolio1 70 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management SUMMARY • The first quarter was characterized by a spike in volatility associated with an equity market correction, talks of tariffs and trade wars, a modest uptick in inflation, and a panoply of geopolitical concerns. Despite healthy fundamentals and a robust global economic backdrop, “risk-off” sentiment began to take hold of the financial markets. For the first time in nearly 10 years, both the stock market and bond market posted losses for the quarter. • During the quarter, President Trump signed a $1.3 trillion omnibus spending bill which averted a government shutdown, significantly increased military spending, and increased funding in a variety of discretionary areas, including background checks for gun purchases, election security, infrastructure, the opioid crisis, child care, low-income housing, the National Park Service, veterans’ hospitals, pay raises for the troops, school safety, and border security. As a result, the Congressional Budget Office (CBO) now estimates that the federal budget deficit will exceed $1 trillion per year by 2020. • Under new Federal Reserve (Fed) chair Jay Powell, the Federal Open Market Committee (FOMC) raised the short-term federal funds target rate 0.25% to a new range of 1.50 to 1.75% at its March meeting. While widely anticipated, the March rate hike indicates the Fed remains committed to its well-defined and well- telegraphed path of monetary policy tightening. Expectations point to two or three more rate hikes over the balance of 2018, with additional hikes likely in 2019 and 2020 as well. • Bond yields continued their ascent over the quarter, with the two-year Treasury reaching a near-decade high. Meanwhile, the S&P 500 index dipped into negative territory for the quarter – the first negative quarter for the headline index since the third quarter of 2015. International indices also posted declines for the quarter, but a weaker U.S. dollar helped temper those relative losses. ECONOMIC SNAPSHOT • Economic data continues to support growth and optimism (both business and consumer) as a myriad of indicators reached or remained at multi-year bests during the quarter, including the unemployment rate, consumer confidence, productivity, and manufacturing. • The U.S. economy posted solid results last year, as the Gross Domestic Product (GDP) for the fourth quarter was revised up to show a real growth rate of 2.9%, after back-to-back readings in excess of 3.0% the prior two quarters. In the midst of eight straight years of domestic economic expansion, global growth is now in synchrony, with nearly every advanced economy around the globe, including the Eurozone, Japan, and China, showing positive growth rates. • The U.S. labor market remained strong as the unemployment rate hovered at a 17-year low of 4.1%. The economy also posted positive net job gains for consecutive months dating back to the fourth quarter of 2010. Meanwhile, wages are beginning to gain some traction, as average hourly earnings – an important measure of wage growth – increased 2.7% over the past year. INTEREST RATES • U.S. Treasury yields rose across the yield curve, as the yield on the 2-year increased 38 basis points (bps) from 1.88 to 2.26%, while the yield on a 10-year increased 33 bps from 2.40 to 2.73%. Although the yield curve initially steepened early in the quarter, as longer-term rates moved up in response to a modest uptick in inflation expectations, the flattening trend ultimately resumed, retreating to post- recession tights by quarter-end. • Money market investors have reaped the benefits of the Fed’s rate increases, as yields on securities with maturities less than one year continued to reflect rising short-term rates. In addition, a huge surge in the supply of U.S. Treasury bills pushed shorter-term yields higher still. • After years of tightening yield spreads, the spike in market volatility caused spreads on corporates and other non-government sectors to widen sharply. SECTOR PERFORMANCE • The continued federal fund rate hikes resulted in negative returns for most bond indices, with longer maturities performing worst. Although higher yields provide greater income over time, that income was not sufficient to offset the adverse impact of increasing interest rates on fixed income prices. • Although Federal Agency returns were also negative, they generated returns slightly more positive than similar duration Treasuries, as their modest incremental income was a slight benefit. • The municipal sector provided some reprieve for fixed income investors during the quarter, as returns were positive and outperformed most other investment-grade (IG) alternatives. The large decline in new issuance in the first quarter, caused by tax changes enacted in the fourth quarter, created a supply/demand imbalance that benefited the sector. • IG corporate yield spreads ended the quarter wider, resulting in the sector being one of the worst performing fixed-income sectors in the first quarter. Despite the poor quarter, trailing returns over longer time periods remain strong, and the underlying strength of corporate fundamentals remains intact. • The mortgage-backed securities (MBS) sector struggled to find footing during the quarter as low yield spreads, upcoming seasonal supply, and Fed balance sheet unwinding continued to weigh on investor demand. As a result, the sector generated a negative excess return for the quarter. • Short-term commercial paper (CP) and bank Certificates of Deposits (CDs) offered even greater incremental value in the first quarter as short-term yields rose in response to the burgeoning Treasury supply, and credit spreads widened. The incremental yield advantage offered in these sectors continues to be a valuable return attribute in the face of rising rates. PFM Asset Management LLC 2 71 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management Economic Snapshot Labor Market Dec '17 Mar '17 Unemployment Rate Mar '18 4.1%4.1%4.5% Change In Non-Farm Payrolls Mar '18 103,000 175,000 73,000 Average Hourly Earnings (YoY)Mar '18 2.7%2.7%2.6% Personal Income (YoY)Feb '18 3.7%4.3%3.4% Initial Jobless Claims (week)4/7/18 233,000 248,000 241,000 Growth Real GDP (QoQ SAAR)2017 Q4 2.9%3.2%1.8% GDP Personal Consumption (QoQ SAAR) 2018 Q4 4.0%2.2%2.9% Retail Sales (YoY)Mar '18 4.5%5.1%4.9% ISM Manufacturing Survey (month) Mar '18 59.3 59.3 56.6 Existing Home Sales SAAR (month) Feb '18 5.54 mil. 5.56 mil. 5.67 mil. Inflation / Prices Personal Consumption Expenditures (YoY)Feb '18 1.8%1.7%1.8% Consumer Price Index (YoY)Mar '18 2.4%2.1%2.4% Consumer Price Index Core (YoY) Mar '18 2.1%1.8%2.0% Crude Oil Futures (WTI, per barrel) Mar 31 $64.94 $60.42 $50.60 Gold Futures (oz.)Mar 31 $1,323 $1,309 $1,247 Latest 0 150K 300K 450K 4% 5% 6% Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Change In Non-Farm Payrolls Unemployment Rate 0% 2% 4% Dec '14 Jun '15 Dec '15 Jun '16 Dec '16 Jun '17 Dec '17 Real GDP (QoQ) -1% 0% 1% 2% 3% Mar '15 Sep '15 Mar '16 Sep '16 Mar '17 Sep '17 Mar '18 Consumer Price Index CPI (YoY)Core CPI (YoY) 2 2 1 1 1. Data as of Third Quarter 2017. 2. Data as of Fourth Quarter 2016. Note: YoY = year-over-year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil. Source: Bloomberg. PFM Asset Management LLC 3 72 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management Source: Bloomberg. Interest Rate Overview U.S. Treasury Note Yields U.S. Treasury Yield Curve U.S. Treasury Yields Yield Curves as of 3/31/18 0% 1% 2% 3% 4%3-mo1-yr2-yr3-yr5-yr7-yr10-yr30-yrYieldMaturity March 31, 2018 December 31, 2017 March 31, 2017 Maturity Mar '18 Dec '17 Change over Quarter Mar '17 Change over Year 3-month 1.71% 1.38% 0.33% 0.75% 0.96% 1-year 2.09% 1.74% 0.35% 1.02% 1.07% 2-year 2.27% 1.89% 0.38% 1.26% 1.01% 5-year 2.56% 2.21% 0.35% 1.92% 0.64% 10-year 2.74% 2.41% 0.33% 2.39% 0.35% 30-year 2.97% 2.74% 0.23% 3.01%(0.04%) 0% 1% 2% 3% 4% 5%3-mo1-yr2-yr3-yr5-yr7-yr10-yr25-yr30-yrYieldMaturity U.S. Treasury Federal Agency Industrial Corporates, A Rated 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3/31/17 6/30/17 9/30/17 12/31/17 3/31/18Yield 2-Year 5-Year 10-Year PFM Asset Management LLC 4 73 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management Source: ICE BofAML Indices. March 31, 2018 Duration Yield 3-Month 1-Year 3-Years 1-3 Year Indices U.S. Treasury 1.80 2.27%(0.13%)0.03% 0.40% Federal Agency 1.74 2.31%(0.02%)0.32% 0.58% U.S. Corporates, A-AAA rated 1.81 2.90%(0.41%)0.65% 1.15% Agency MBS (0 to 3 years)2.38 2.57% 0.01% 0.99% 1.05% Taxable Municipals 1.49 2.76% 0.25% 1.69% 1.83% 1-5 Year Indices U.S. Treasury 2.59 2.36%(0.38%) (0.10%)0.47% Federal Agency 2.10 2.36%(0.18%)0.26% 0.65% U.S. Corporates, A-AAA rated 2.61 3.04%(0.80%)0.62% 1.31% Agency MBS (0 to 5 years)3.27 2.75%(0.61%)0.52% 0.92% Taxable Municipals 2.23 2.84% 0.13% 1.62% 1.99% Master Indices (Maturities 1 Year or Greater) U.S. Treasury 6.24 2.55%(1.21%)0.51% 0.47% Federal Agency 3.86 2.53%(0.53%)0.85% 0.94% U.S. Corporates, A-AAA rated 6.97 3.50%(2.31%)2.11% 1.96% Agency MBS (0 to 30 years)5.03 3.26%(1.21%)0.74% 1.10% Taxable Municipals 10.63 3.88%(1.73%)6.82% 3.73% As of 3/31/18 Returns for Periods ended 3/31/18 Returns for periods greater than one year are annualized. PFM Asset Management LLC ICE BofAML Index Returns 5 74 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2018 Fixed Income Management DISCLOSURES PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. Investment advisory services are provided by PFM Asset Management LLC which is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFM’s services or entities, please visit www.pfm.com. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. © 2018 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. PFM Asset Management LLC 6 75 For the Month Ending March 31, 2018Managed Account Detail of Securities Held Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value CITY OF CHULA VISTA Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 07/31/2013 1.375% 07/31/2018 4,493,497.50 4,504,929.12 10,255.52 4,544,648.44 07/06/1507/02/15AaaAA+ 4,500,000.00 912828VQ0 1.05 US TREASURY NOTES DTD 10/15/2015 0.875% 10/15/2018 2,982,306.00 2,986,435.95 12,115.38 2,979,960.94 12/28/1712/27/17AaaAA+ 3,000,000.00 912828L81 1.72 US TREASURY NOTES DTD 10/31/2011 1.750% 10/31/2018 3,889,827.44 3,909,911.27 28,620.72 3,977,008.01 08/05/1508/04/15AaaAA+ 3,895,000.00 912828RP7 1.09 US TREASURY NOTES DTD 12/02/2013 1.250% 11/30/2018 7,934,813.98 7,978,838.53 33,411.74 7,994,314.46 07/06/1507/02/15AaaAA+ 7,975,000.00 912828A34 1.18 US TREASURY N/B DTD 01/15/2016 1.125% 01/15/2019 2,977,266.00 2,984,002.59 7,085.64 2,978,789.06 12/28/1712/27/17AaaAA+ 3,000,000.00 912828N63 1.81 US TREASURY NOTES DTD 01/31/2012 1.250% 01/31/2019 993,047.00 998,706.83 2,071.82 994,023.44 02/23/1502/19/15AaaAA+ 1,000,000.00 912828SD3 1.41 US TREASURY NOTES DTD 06/02/2014 1.500% 05/31/2019 8,433,598.00 8,513,335.23 42,733.52 8,543,828.13 07/06/1507/02/15AaaAA+ 8,500,000.00 912828WL0 1.36 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 2,027,813.48 2,056,160.58 56.42 2,039,348.83 04/27/1504/23/15AaaAA+ 2,065,000.00 912828TR1 1.29 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 2,995,075.60 3,033,324.31 83.33 3,001,867.19 05/04/1505/01/15AaaAA+ 3,050,000.00 912828TR1 1.37 US TREASURY NOTES DTD 10/31/2014 1.500% 10/31/2019 1,482,480.00 1,497,582.14 9,447.51 1,493,496.09 06/29/1506/26/15AaaAA+ 1,500,000.00 912828F62 1.60 US TREASURY NOTES DTD 10/31/2014 1.500% 10/31/2019 8,400,720.00 8,500,268.52 53,535.91 8,500,664.06 07/06/1507/02/15AaaAA+ 8,500,000.00 912828F62 1.50 US TREASURY NOTES DTD 11/30/2012 1.000% 11/30/2019 2,938,944.00 2,977,566.75 10,054.95 2,940,468.75 05/28/1505/26/15AaaAA+ 3,000,000.00 912828UB4 1.46 US TREASURY NOTES DTD 12/01/2014 1.500% 11/30/2019 2,963,085.00 3,005,179.65 15,082.42 3,009,257.81 11/29/1611/29/16AaaAA+ 3,000,000.00 912828G61 1.39 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 1,176,843.60 1,198,359.12 1,304.35 1,196,296.88 10/13/1510/08/15AaaAA+ 1,200,000.00 912828UQ1 1.32 7 76 For the Month Ending March 31, 2018Managed Account Detail of Securities Held Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value CITY OF CHULA VISTA Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 1,176,843.60 1,198,286.52 1,304.35 1,196,156.25 10/23/1510/23/15AaaAA+ 1,200,000.00 912828UQ1 1.33 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 2,986,240.64 3,025,856.57 3,309.78 3,002,774.41 11/13/1511/13/15AaaAA+ 3,045,000.00 912828UQ1 1.59 US TREASURY NOTES DTD 01/31/2016 1.375% 01/31/2021 2,916,681.00 3,012,670.44 6,837.02 3,020,507.81 06/10/1606/07/16AaaAA+ 3,000,000.00 912828N89 1.22 US TREASURY NOTES DTD 03/31/2016 1.250% 03/31/2021 3,384,062.50 3,501,906.63 119.54 3,503,007.81 06/10/1606/07/16AaaAA+ 3,500,000.00 912828Q37 1.23 237,429.92 64,153,145.34 64,883,320.75 1.36 64,916,418.37 64,930,000.00 Security Type Sub-Total Federal Agency Collateralized Mortgage Obligation FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 524,494.35 529,240.59 723.93 533,055.91 10/30/1510/07/15AaaAA+ 527,770.86 3136AQDQ0 1.08 723.93 524,494.35 529,240.59 1.08 533,055.91 527,770.86 Security Type Sub-Total Federal Agency Bond / Note FREDDIE MAC (EX-CALLABLE) BONDS DTD 05/29/2013 1.000% 05/29/2018 2,996,052.00 3,000,000.00 10,166.67 3,000,000.00 05/29/1305/29/13AaaAA+ 3,000,000.00 3134G45W4 1.00 10,166.67 2,996,052.00 3,000,000.00 1.00 3,000,000.00 3,000,000.00 Security Type Sub-Total Corporate Note CITIGROUP INC CORP NOTES DTD 05/01/2013 1.750% 05/01/2018 499,680.00 500,067.70 3,645.83 501,275.00 09/30/1609/30/16Baa1BBB+ 500,000.00 172967GS4 1.59 BERKSHIRE HATHAWAY NOTES DTD 05/15/2013 1.300% 05/15/2018 424,406.28 424,945.24 2,087.22 423,763.25 07/27/1507/23/15Aa2AA 425,000.00 084664BW0 1.41 BERKSHIRE HATHAWAY NOTES DTD 05/15/2013 1.300% 05/15/2018 1,344,119.64 1,346,015.01 6,610.36 1,346,336.50 07/15/1507/10/15Aa2AA 1,346,000.00 084664BW0 1.29 BANK OF AMERICA BANK NOTES DTD 06/05/2015 1.750% 06/05/2018 798,936.80 800,080.59 4,511.11 801,160.00 10/23/1510/20/15Aa3A+ 800,000.00 06050TMC3 1.69 8 77 For the Month Ending March 31, 2018Managed Account Detail of Securities Held Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value CITY OF CHULA VISTA Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note CHEVRON CORP (CALLABLE) GLOBAL NOTES DTD 06/24/2013 1.718% 06/24/2018 1,497,693.00 1,501,149.09 6,943.58 1,523,610.00 04/27/1504/23/15Aa2AA- 1,500,000.00 166764AE0 1.21 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 500,716.00 502,060.56 2,900.00 512,255.00 09/30/1609/30/16A3BBB+ 500,000.00 38147MAA3 1.52 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 976,396.20 978,290.65 5,655.00 1,004,298.75 10/28/1510/28/15A3BBB+ 975,000.00 38147MAA3 1.77 CATERPILLAR FINANCIAL SERVICES CORP NOTE DTD 09/06/2013 2.450% 09/06/2018 2,450,703.15 2,458,821.89 4,168.40 2,477,954.50 04/21/1704/19/17A3A 2,450,000.00 14912L5T4 1.61 CITIGROUP INC CORP NOTES DTD 09/26/2013 2.500% 09/26/2018 974,708.48 977,774.69 338.54 991,233.75 10/28/1510/28/15Baa1BBB+ 975,000.00 172967HC8 1.91 US BANCORP NOTES (CALLABLE) DTD 11/07/2013 1.950% 11/15/2018 2,990,970.00 3,003,818.94 22,100.00 3,021,840.00 08/19/1508/17/15A1A+ 3,000,000.00 91159HHE3 1.72 BANK OF NY MELLN CORP (CALLABLE) NOTES DTD 11/18/2013 2.100% 01/15/2019 995,551.00 1,001,621.17 4,433.33 1,007,240.00 09/21/1509/18/15A1A 1,000,000.00 06406HCP2 1.87 IBM CORP NOTE DTD 02/12/2014 1.950% 02/12/2019 1,491,262.50 1,506,581.58 3,981.25 1,528,290.00 04/27/1504/23/15A1A+ 1,500,000.00 459200HT1 1.44 TOYOTA MOTOR CREDIT CORP NOTES DTD 02/19/2016 1.700% 02/19/2019 1,519,037.55 1,529,945.00 3,034.50 1,529,816.40 02/19/1602/16/16Aa3AA- 1,530,000.00 89236TCU7 1.70 CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/2014 2.125% 03/01/2019 1,496,227.50 1,501,612.44 2,656.25 1,506,270.00 06/29/1506/26/15A1AA- 1,500,000.00 17275RAR3 2.01 APPLE INC GLOBAL NOTES DTD 05/06/2014 2.100% 05/06/2019 1,495,918.50 1,503,356.58 12,687.50 1,511,475.00 06/29/1506/26/15Aa1AA+ 1,500,000.00 037833AQ3 1.89 AMERCIAN EXPRESS CREDIT CORP NOTES DTD 08/15/2014 2.250% 08/15/2019 994,168.00 1,001,383.46 2,875.00 1,003,820.00 09/21/1509/18/15A2A- 1,000,000.00 0258M0DP1 2.15 AMERICAN HONDA FINANCE GLOBAL NOTES DTD 09/09/2014 2.250% 08/15/2019 1,491,919.50 1,508,637.05 4,312.50 1,514,325.00 04/28/1704/25/17A2A+ 1,500,000.00 02665WAH4 1.82 9 78 For the Month Ending March 31, 2018Managed Account Detail of Securities Held Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value CITY OF CHULA VISTA Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note GENERAL ELECTRIC CAP CORP (CALLABLE) DTD 01/09/2015 2.200% 01/09/2020 1,477,060.50 1,516,321.65 7,516.67 1,533,555.00 06/01/1605/26/16A2A 1,500,000.00 36962G7M0 1.56 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 987,849.00 997,095.59 4,250.00 993,230.00 09/21/1509/18/15A3A- 1,000,000.00 46625HKA7 2.41 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 1,481,773.50 1,501,859.72 6,375.00 1,504,815.00 04/27/1504/23/15A3A- 1,500,000.00 46625HKA7 2.18 WELLS FARGO & CO CORP BONDS DTD 02/02/2015 2.150% 01/30/2020 984,367.00 999,142.14 3,643.06 998,000.00 09/21/1509/18/15A2A- 1,000,000.00 94974BGF1 2.20 WELLS FARGO & CO CORP BONDS DTD 02/02/2015 2.150% 01/30/2020 1,476,550.50 1,500,021.98 5,464.58 1,500,045.00 03/27/1503/26/15A2A- 1,500,000.00 94974BGF1 2.15 MICROSOFT CORP (CALLABLE) NOTE DTD 02/12/2015 1.850% 02/12/2020 1,983,146.00 2,003,744.88 5,036.11 2,006,200.00 01/17/1701/13/17AaaAAA 2,000,000.00 594918AY0 1.75 BOEING COMPANY CORP NOTES DTD 07/28/2009 4.875% 02/15/2020 1,564,215.00 1,585,150.05 9,343.75 1,634,145.00 02/23/1702/22/17A2A 1,500,000.00 097023AZ8 1.78 AMERICAN HONDA FINANCE CORP NOTES DTD 03/13/2015 2.150% 03/13/2020 1,480,590.00 1,502,451.86 1,612.50 1,506,045.00 03/27/1503/26/15A2A+ 1,500,000.00 02665WAU5 2.06 COMCAST CORP CORP NOTES DTD 08/19/2011 5.150% 04/30/2020 1,565,644.50 1,594,291.52 32,402.08 1,642,770.00 02/23/1702/22/17A3A- 1,500,000.00 63946BAD2 2.05 AMERICAN EXP CREDIT CORP NT (CALLABLE) DTD 05/26/2015 2.375% 05/26/2020 1,480,543.50 1,493,258.36 12,369.79 1,485,135.00 06/29/1506/26/15A2A- 1,500,000.00 0258M0DT3 2.59 BNY MELLON CORP NOTE (CALLABLE) DTD 08/17/2015 2.600% 08/17/2020 1,489,242.00 1,512,796.13 4,766.67 1,525,875.00 10/09/1510/08/15A1A 1,500,000.00 06406HDD8 2.22 AMERICAN HONDA FINANCE CB DTD 09/24/2015 2.450% 09/24/2020 991,574.00 1,002,925.70 476.39 1,005,680.00 10/09/1510/08/15A2A+ 1,000,000.00 02665WAZ4 2.33 PEPSICO INC CORP NOTES (CALLABLE) DTD 10/14/2015 2.150% 10/14/2020 1,974,382.00 2,018,993.56 19,947.22 2,032,540.00 06/06/1606/01/16A1A+ 2,000,000.00 713448DC9 1.76 MORGAN STANLEY CORP NOTES DTD 04/21/2016 2.500% 04/21/2021 440,925.30 451,834.75 5,000.00 452,893.50 05/16/1605/11/16A3BBB+ 450,000.00 61746BEA0 2.36 10 79 For the Month Ending March 31, 2018Managed Account Detail of Securities Held Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value CITY OF CHULA VISTA Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par 211,144.19 41,320,276.90 41,726,049.53 1.86 42,025,891.65 41,451,000.00 Security Type Sub-Total Commercial Paper JP MORGAN SECURITIES LLC COMM PAPER DTD 07/06/2017 0.000% 04/02/2018 1,499,704.50 1,499,938.34 0.00 1,486,310.00 08/23/1708/23/17P-1A-1 1,500,000.00 46640QD24 1.49 BANK OF TOKYO MITSUBISHI UFJ COMM PAPER DTD 08/22/2017 0.000% 05/10/2018 2,993,106.00 2,995,059.99 0.00 2,966,940.00 08/22/1708/22/17P-1A-1 3,000,000.00 06538CEA5 1.54 ING (US) FUNDING LLC COMM PAPER DTD 08/28/2017 0.000% 05/21/2018 2,990,991.00 2,993,708.34 0.00 2,966,654.17 08/29/1708/29/17P-1A-1 3,000,000.00 4497W1EM4 1.53 GE CAPITAL TREASURY LLC COMM PAPER DTD 11/20/2017 0.000% 08/13/2018 2,975,580.00 2,980,793.31 0.00 2,962,016.67 11/21/1711/21/17P-1A-1 3,000,000.00 36164KHD6 1.74 TOYOTA MOTOR CREDIT CORP COMM PAPER DTD 12/12/2017 0.000% 09/07/2018 1,484,286.00 1,488,339.99 0.00 1,480,273.33 12/12/1712/12/17P-1A-1+ 1,500,000.00 89233HJ70 1.78 BNP PARIBAS NY BRANCH COMM PAPER DTD 02/16/2018 0.000% 10/15/2018 2,958,633.00 2,964,868.32 0.00 2,957,021.67 02/16/1802/16/18P-1A-1 3,000,000.00 09659CKF4 2.17 CREDIT AGRICOLE CIB NY COMM PAPER DTD 01/19/2018 0.000% 10/15/2018 2,960,382.00 2,963,226.66 0.00 2,957,440.00 03/01/1803/01/18P-1A-1 3,000,000.00 22533UKF9 2.27 TOYOTA MOTOR CREDIT CORP COMM PAPER DTD 02/20/2018 0.000% 10/15/2018 3,454,286.50 3,459,013.04 0.00 3,450,690.83 02/20/1802/20/18P-1A-1+ 3,500,000.00 89233HKF0 2.17 0.00 21,316,969.00 21,344,947.99 1.87 21,227,346.67 21,500,000.00 Security Type Sub-Total Certificate of Deposit UBS AG STAMFORD CT CERT DEPOS DTD 05/11/2017 1.550% 05/10/2018 2,998,046.55 3,000,105.42 41,979.17 3,000,683.93 08/30/1708/29/17P-1A-1 3,000,000.00 90275DGY0 1.51 BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/2017 1.880% 02/07/2019 2,997,186.00 3,000,000.00 8,460.00 3,000,000.00 02/09/1702/08/17P-1A-1 3,000,000.00 06427KRC3 1.90 SUMITOMO MITSUI BANK NY CD DTD 05/04/2017 2.050% 05/03/2019 2,990,109.00 3,000,000.00 25,454.17 3,000,000.00 05/04/1705/03/17A1A 3,000,000.00 86563YVN0 2.05 11 80 For the Month Ending March 31, 2018Managed Account Detail of Securities Held Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value CITY OF CHULA VISTA Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Certificate of Deposit SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/2017 1.840% 08/02/2019 2,909,128.23 2,999,215.71 8,893.33 2,998,830.00 08/04/1708/03/17Aa3A+ 3,000,000.00 83050FXT3 1.85 BANK OF TOKYO-MITSUBISHI NY CD DTD 09/27/2017 2.070% 09/25/2019 990,661.00 1,000,000.00 10,695.00 1,000,000.00 09/27/1709/25/17A1A 1,000,000.00 06539RGM3 2.07 CREDIT SUISSE NEW YORK CERT DEPOS DTD 02/08/2018 2.670% 02/07/2020 1,504,971.00 1,500,000.00 5,896.25 1,500,000.00 02/08/1802/07/18A1A 1,500,000.00 22549LFR1 2.67 101,377.92 14,390,101.78 14,499,321.13 1.93 14,499,513.93 14,500,000.00 Security Type Sub-Total Asset-Backed Security / Collateralized Mortgage Obligation CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 358,535.70 359,351.90 193.26 359,342.32 10/26/1610/19/16AaaNR 359,361.80 14312QAB2 1.21 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 432,467.49 434,893.70 191.61 434,856.02 02/25/1602/16/16NRAAA 434,917.82 43814NAC9 1.23 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 577,177.18 580,680.33 353.59 580,636.06 10/14/1510/06/15AaaNR 580,709.99 65478AAD5 1.38 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 389,720.95 391,690.02 250.69 391,672.49 05/31/1605/24/16AaaAAA 391,710.53 02007LAC6 1.44 BANK OF AMERICA ABS 2015-A2 A DTD 04/29/2015 1.360% 09/15/2020 999,626.20 1,000,689.46 604.44 1,001,328.12 10/28/1510/26/15NRAAA 1,000,000.00 05522RCU0 1.30 HONDA ABS 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 1,134,931.21 1,149,955.02 502.49 1,149,925.37 10/25/1610/18/16NRAAA 1,150,000.00 43814RAC0 1.04 JOHN DEERE ABS 2017-B A3 DTD 07/15/2017 1.820% 10/15/2021 526,898.44 534,967.03 432.76 534,960.84 07/18/1707/11/17AaaNR 535,000.00 47788BAD6 1.82 2,528.84 4,419,357.17 4,452,227.46 1.31 4,452,721.22 4,451,700.14 Security Type Sub-Total 150,360,471.00 150,654,947.75 1.62 563,371.47 150,435,107.45 149,120,396.54 Managed Account Sub-Total 12 81 For the Month Ending March 31, 2018Managed Account Detail of Securities Held CITY OF CHULA VISTA $150,360,471.00 $150,654,947.75 $563,371.47 $150,435,107.45 $149,120,396.54 1.62% $149,683,768.01 $563,371.47 Total Investments Accrued Interest Securities Sub-Total 13 82 For the Month Ending January 31, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 01/25/18 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 0.00 977.92 977.92 684,632.55 01/01/18 01/02/18 MONEY MARKET FUND MONEY0002 0.00 79.27 79.27 0.00 01/02/18 01/03/18 MONEY MARKET FUND MONEY0002 0.00 1,146.61 1,146.61 0.00 01/03/18 01/05/18 MORGAN STANLEY CORP NOTES DTD 12/05/2014 1.875% 01/05/2018 61761JVM8 0.00 5,156.25 5,156.25 550,000.00 01/05/18 01/09/18 GENERAL ELECTRIC CAP CORP (CALLABLE) DTD 01/09/2015 2.200% 01/09/2020 36962G7M0 0.00 16,500.00 16,500.00 1,500,000.00 01/09/18 01/15/18 US TREASURY N/B DTD 01/15/2016 1.125% 01/15/2019 912828N63 0.00 16,875.00 16,875.00 3,000,000.00 01/15/18 01/15/18 JOHN DEERE ABS 2017-B A3 DTD 07/15/2017 1.820% 10/15/2021 47788BAD6 0.00 811.42 811.42 535,000.00 01/15/18 01/15/18 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 0.00 836.68 836.68 732,854.41 01/15/18 01/15/18 BANK OF NY MELLN CORP (CALLABLE) NOTES DTD 11/18/2013 2.100% 01/15/2019 06406HCP2 0.00 10,500.00 10,500.00 1,000,000.00 01/15/18 01/15/18 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 0.00 596.93 596.93 497,444.74 01/15/18 01/15/18 BANK OF AMERICA ABS 2015-A2 A DTD 04/29/2015 1.360% 09/15/2020 05522RCU0 0.00 1,133.33 1,133.33 1,000,000.00 01/15/18 01/15/18 CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 0.00 593.82 593.82 588,912.26 01/15/18 01/18/18 HONDA ABS 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 43814RAC0 0.00 1,159.58 1,159.58 1,150,000.00 01/18/18 01/18/18 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 0.00 587.09 587.09 577,469.34 01/18/18 01/19/18 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 38147MAA3 0.00 7,250.00 7,250.00 500,000.00 01/19/18 01/19/18 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 38147MAA3 0.00 14,137.50 14,137.50 975,000.00 01/19/18 01/23/18 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 46625HKA7 0.00 16,875.00 16,875.00 1,500,000.00 01/23/18 14 83 For the Month Ending January 31, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 01/23/18 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 46625HKA7 0.00 11,250.00 11,250.00 1,000,000.00 01/23/18 01/30/18 WELLS FARGO & CO CORP BONDS DTD 02/02/2015 2.150% 01/30/2020 94974BGF1 0.00 16,125.00 16,125.00 1,500,000.00 01/30/18 01/30/18 WELLS FARGO & CO CORP BONDS DTD 02/02/2015 2.150% 01/30/2020 94974BGF1 0.00 10,750.00 10,750.00 1,000,000.00 01/30/18 01/31/18 US TREASURY NOTES DTD 01/31/2012 1.250% 01/31/2019 912828SD3 0.00 6,250.00 6,250.00 1,000,000.00 01/31/18 01/31/18 US TREASURY NOTES DTD 01/31/2016 1.375% 01/31/2021 912828N89 0.00 20,625.00 20,625.00 3,000,000.00 01/31/18 01/31/18 US TREASURY NOTES DTD 07/31/2013 1.375% 07/31/2018 912828VQ0 0.00 30,937.50 30,937.50 4,500,000.00 01/31/18 191,153.90 191,153.90 0.00 26,791,313.30 Transaction Type Sub-Total MATURITY 01/05/18 MORGAN STANLEY CORP NOTES DTD 12/05/2014 1.875% 01/05/2018 61761JVM8 550,000.00 0.00 550,000.00 (2,849.00) 0.00 550,000.00 01/05/18 0.00 0.00 (2,849.00) 550,000.00 550,000.00 550,000.00 Transaction Type Sub-Total PAYDOWNS 01/25/18 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 27,728.50 0.00 27,728.50 (277.67) 0.00 27,728.50 01/01/18 01/15/18 CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 77,208.04 0.00 77,208.04 4.18 0.00 77,208.04 01/15/18 01/15/18 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 49,729.35 0.00 49,729.35 6.33 0.00 49,729.35 01/15/18 01/15/18 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 35,944.68 0.00 35,944.68 3.49 0.00 35,944.68 01/15/18 01/18/18 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 48,481.75 0.00 48,481.75 6.89 0.00 48,481.75 01/18/18 0.00 0.00 (256.78) 239,092.32 239,092.32 239,092.32 Transaction Type Sub-Total 15 84 For the Month Ending January 31, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method 789,092.32 191,153.90 980,246.22 (3,105.78) 0.00 Managed Account Sub-Total Total Security Transactions ($3,105.78)$980,246.22 $191,153.90 $789,092.32 $0.00 16 85 For the Month Ending February 28, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 02/08/18 CREDIT SUISSE NEW YORK CERT DEPOS DTD 02/08/2018 2.670% 02/07/2020 22549LFR1 (1,500,000.00) 0.00 (1,500,000.00) 1,500,000.00 02/07/18 02/16/18 BNP PARIBAS NY BRANCH COMM PAPER DTD 02/16/2018 0.000% 10/15/2018 09659CKF4 (2,957,021.67) 0.00 (2,957,021.67) 3,000,000.00 02/16/18 02/20/18 TOYOTA MOTOR CREDIT CORP COMM PAPER DTD 02/20/2018 0.000% 10/15/2018 89233HKF0 (3,450,690.83) 0.00 (3,450,690.83) 3,500,000.00 02/20/18 0.00 (7,907,712.50)(7,907,712.50) 8,000,000.00 Transaction Type Sub-Total INTEREST 02/01/18 MONEY MARKET FUND MONEY0002 0.00 108.11 108.11 0.00 02/01/18 02/25/18 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 0.00 1,066.30 1,066.30 656,904.05 02/01/18 02/02/18 SKANDINAV ENSKILDA BANKEN NY CD DTD 08/04/2017 1.840% 08/02/2019 83050FXT3 0.00 27,906.67 27,906.67 3,000,000.00 02/02/18 02/02/18 MONEY MARKET FUND MONEY0002 0.00 1,578.84 1,578.84 0.00 02/02/18 02/07/18 BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/2017 1.880% 02/07/2019 06427KRC3 0.00 28,200.00 28,200.00 3,000,000.00 02/07/18 02/12/18 IBM CORP NOTE DTD 02/12/2014 1.950% 02/12/2019 459200HT1 0.00 14,625.00 14,625.00 1,500,000.00 02/12/18 02/12/18 MICROSOFT CORP (CALLABLE) NOTE DTD 02/12/2015 1.850% 02/12/2020 594918AY0 0.00 18,500.00 18,500.00 2,000,000.00 02/12/18 02/15/18 BOEING COMPANY CORP NOTES DTD 07/28/2009 4.875% 02/15/2020 097023AZ8 0.00 36,562.50 36,562.50 1,500,000.00 02/15/18 02/15/18 JOHN DEERE ABS 2017-B A3 DTD 07/15/2017 1.820% 10/15/2021 47788BAD6 0.00 811.42 811.42 535,000.00 02/15/18 02/15/18 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 0.00 553.80 553.80 461,500.06 02/15/18 02/15/18 AMERICAN HONDA FINANCE GLOBAL NOTES DTD 09/09/2014 2.250% 08/15/2019 02665WAH4 0.00 16,875.00 16,875.00 1,500,000.00 02/15/18 17 86 For the Month Ending February 28, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 02/15/18 AMERCIAN EXPRESS CREDIT CORP NOTES DTD 08/15/2014 2.250% 08/15/2019 0258M0DP1 0.00 11,250.00 11,250.00 1,000,000.00 02/15/18 02/15/18 BANK OF AMERICA ABS 2015-A2 A DTD 04/29/2015 1.360% 09/15/2020 05522RCU0 0.00 1,133.33 1,133.33 1,000,000.00 02/15/18 02/15/18 CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 0.00 515.97 515.97 511,704.22 02/15/18 02/15/18 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 0.00 779.90 779.90 683,125.06 02/15/18 02/17/18 BNY MELLON CORP NOTE (CALLABLE) DTD 08/17/2015 2.600% 08/17/2020 06406HDD8 0.00 19,500.00 19,500.00 1,500,000.00 02/17/18 02/18/18 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 0.00 537.80 537.80 528,987.59 02/18/18 02/18/18 HONDA ABS 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 43814RAC0 0.00 1,159.58 1,159.58 1,150,000.00 02/18/18 02/19/18 TOYOTA MOTOR CREDIT CORP NOTES DTD 02/19/2016 1.700% 02/19/2019 89236TCU7 0.00 13,005.00 13,005.00 1,530,000.00 02/19/18 02/28/18 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 912828UQ1 0.00 7,500.00 7,500.00 1,200,000.00 02/28/18 02/28/18 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 912828UQ1 0.00 7,500.00 7,500.00 1,200,000.00 02/28/18 02/28/18 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 912828UQ1 0.00 19,031.25 19,031.25 3,045,000.00 02/28/18 228,700.47 228,700.47 0.00 27,502,220.98 Transaction Type Sub-Total MATURITY 02/16/18 BNP PARIBAS NY BRANCH COMM PAPER DTD 05/23/2017 0.000% 02/16/2018 09659CBG2 3,000,000.00 0.00 3,000,000.00 31,607.50 0.00 3,000,000.00 02/16/18 02/20/18 COOPERATIEVE RABOBANK U.A. COMM PAPER DTD 07/26/2017 0.000% 02/20/2018 21687BBL4 3,000,000.00 0.00 3,000,000.00 23,512.50 0.00 3,000,000.00 02/20/18 0.00 0.00 55,120.00 6,000,000.00 6,000,000.00 6,000,000.00 Transaction Type Sub-Total 18 87 For the Month Ending February 28, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method PAYDOWNS 02/25/18 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 43,350.56 0.00 43,350.56 (434.11) 0.00 43,350.56 02/01/18 02/15/18 CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 77,773.04 0.00 77,773.04 4.22 0.00 77,773.04 02/15/18 02/15/18 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 54,070.81 0.00 54,070.81 6.88 0.00 54,070.81 02/15/18 02/15/18 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 37,436.75 0.00 37,436.75 3.63 0.00 37,436.75 02/15/18 02/18/18 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 49,123.05 0.00 49,123.05 6.98 0.00 49,123.05 02/18/18 0.00 0.00 (412.40) 261,754.21 261,754.21 261,754.21 Transaction Type Sub-Total (1,645,958.29) 228,700.47 (1,417,257.82) 54,707.60 0.00 Managed Account Sub-Total Total Security Transactions $54,707.60 ($1,417,257.82)$228,700.47 ($1,645,958.29)$0.00 19 88 For the Month Ending March 31, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA ransaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 03/01/18 CREDIT AGRICOLE CIB NY COMM PAPER DTD 01/19/2018 0.000% 10/15/2018 22533UKF9 (2,957,440.00) 0.00 (2,957,440.00) 3,000,000.00 03/01/18 0.00 (2,957,440.00)(2,957,440.00) 3,000,000.00 Transaction Type Sub-Total INTEREST 03/01/18 MONEY MARKET FUND MONEY0002 0.00 143.01 143.01 0.00 03/01/18 03/01/18 CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/2014 2.125% 03/01/2019 17275RAR3 0.00 15,937.50 15,937.50 1,500,000.00 03/01/18 03/25/18 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 0.00 1,013.88 1,013.88 613,553.49 03/01/18 03/02/18 MONEY MARKET FUND MONEY0002 0.00 582.07 582.07 0.00 03/02/18 03/06/18 CATERPILLAR FINANCIAL SERVICES CORP NOTE DTD 09/06/2013 2.450% 09/06/2018 14912L5T4 0.00 30,012.50 30,012.50 2,450,000.00 03/06/18 03/13/18 AMERICAN HONDA FINANCE CORP NOTES DTD 03/13/2015 2.150% 03/13/2020 02665WAU5 0.00 16,125.00 16,125.00 1,500,000.00 03/13/18 03/15/18 CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 0.00 437.55 437.55 433,931.18 03/15/18 03/15/18 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 0.00 718.17 718.17 629,054.25 03/15/18 03/15/18 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 0.00 508.88 508.88 424,063.31 03/15/18 03/15/18 JOHN DEERE ABS 2017-B A3 DTD 07/15/2017 1.820% 10/15/2021 47788BAD6 0.00 811.42 811.42 535,000.00 03/15/18 03/15/18 BANK OF AMERICA ABS 2015-A2 A DTD 04/29/2015 1.360% 09/15/2020 05522RCU0 0.00 1,133.33 1,133.33 1,000,000.00 03/15/18 03/18/18 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 0.00 487.86 487.86 479,864.54 03/18/18 03/18/18 HONDA ABS 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 43814RAC0 0.00 1,159.58 1,159.58 1,150,000.00 03/18/18 03/24/18 AMERICAN HONDA FINANCE CB DTD 09/24/2015 2.450% 09/24/2020 02665WAZ4 0.00 12,250.00 12,250.00 1,000,000.00 03/24/18 20 89 For the Month Ending March 31, 2018Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 03/26/18 CITIGROUP INC CORP NOTES DTD 09/26/2013 2.500% 09/26/2018 172967HC8 0.00 12,187.50 12,187.50 975,000.00 03/26/18 03/31/18 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 912828TR1 0.00 10,325.00 10,325.00 2,065,000.00 03/31/18 03/31/18 US TREASURY NOTES DTD 03/31/2016 1.250% 03/31/2021 912828Q37 0.00 21,875.00 21,875.00 3,500,000.00 03/31/18 03/31/18 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 912828TR1 0.00 15,250.00 15,250.00 3,050,000.00 03/31/18 140,958.25 140,958.25 0.00 21,305,466.77 Transaction Type Sub-Total MATURITY 03/01/18 CREDIT AGRICOLE CIB NY COMM PAPER DTD 07/11/2017 0.000% 03/01/2018 22533UC19 3,000,000.00 0.00 3,000,000.00 22,166.67 0.00 3,000,000.00 03/01/18 0.00 0.00 22,166.67 3,000,000.00 3,000,000.00 3,000,000.00 Transaction Type Sub-Total PAYDOWNS 03/25/18 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 85,782.63 0.00 85,782.63 (859.02) 0.00 85,782.63 03/01/18 03/15/18 CARMAX ABS 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 74,569.38 0.00 74,569.38 4.04 0.00 74,569.38 03/15/18 03/15/18 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 48,344.26 0.00 48,344.26 6.15 0.00 48,344.26 03/15/18 03/15/18 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 32,352.78 0.00 32,352.78 3.14 0.00 32,352.78 03/15/18 03/18/18 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 44,946.72 0.00 44,946.72 6.39 0.00 44,946.72 03/18/18 0.00 0.00 (839.30) 285,995.77 285,995.77 285,995.77 Transaction Type Sub-Total 328,555.77 140,958.25 469,514.02 21,327.37 0.00 Managed Account Sub-Total Total Security Transactions $21,327.37 $469,514.02 $140,958.25 $328,555.77 $0.00 21 90 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 1 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) 1.0 Purpose: This “Investment Policy and Guidelines” (the “Investment Policy”) Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the “City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. 3.0 Scope: This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds: The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual financial report and include: General Fund Special Revenue Funds Capital Project Funds Enterprise Funds Trust and Agency Funds Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. 91 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 2 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) Bond proceeds shall be invested in the investments permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, the bond proceeds will be invested in the securities permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed elsewhere in this Policy do not apply to bond proceeds. 4.0 Prudence: The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”. This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: “ … all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” 4.1 Personal Responsibility: The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 92 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 3 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity: The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments: The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.0. 6.0 Delegation of Authority: The City Council delegates responsibility for the investment program to the Director of Finance/Treasurer for a period of one year. Subject to review, the City Council may renew the delegation of authority each year. The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance/Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. 7.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the 93 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 4 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)]. 8.0 Authorized Financial Dealers and Institutions: For any transactions executed by the City, theThe City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody’s Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency 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. To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with from approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional broker/dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the broker/dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government 94 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 5 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and broker/dealers to conduct transactions on behalf of the City. 9.0 Authorized & Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS’ ACCEPTANCES. A maximum of 40% of the portfolio may be invested in bankers’ acceptances. The maximum maturity is 180 days. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in a rating category as provided by a nationally recognized statistical rating organization (NRSRO). B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD’s) differ from other certificates of deposit by their liquidity. NCD’s are traded actively in secondary markets. NCD’s with maturities under one year must be rated in a rating category of “A-1,” its equivalent, or better by a NRSRO. NCD’s with maturities in 95 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 6 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) excess of one year must be rated in a rating category of “A,” its equivalent or better by a NRSRO. In compliance with California Code 53601.8, all FDIC insured CD’s, when placed through a deposit placement service, will be measured for compliance with NCD’s. C. COMMERCIAL PAPER. A maximum of 25% of the portfolio may be invested in commercial paper. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. c. Has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Bonds must have a rating in a rating category of “A,” its equivalent or better from a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. 96 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 7 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) G. REPURCHASE AGREEMENT, maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. There is no limit on the percentage of the portfolio that can be invested in this category. H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio. c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. e) For purposes of this policy, “significant banking relationship” means any of the following activities of a bank: 97 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 8 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness. ii. Financing of a local agency’s activities. iii. Acceptance of a local agency’s securities or funds as deposits. I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. J. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit). The maximum maturity is 3 years. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made at any time in certificates of deposit issued by a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. There is no limit on the percentage of the portfolio that can be invested in this category. K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. M. MONEY MARKET FUNDS. A maximum of 20% of the portfolio may be invested in money 98 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 9 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) market funds. No more than 10% of the City’s portfolio may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, and repurchase agreements collateralized with U.S. Treasuries with a weighted average of 60 days or less. They must have the highest rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience man aging money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares may not include commission. N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County. The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit. O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $50 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). There is no limit on the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (qo) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: • The adviser is registered or exempt from registration with the Securities and Exchange Commission. • The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (qo) Government Code Section 53601, inclusive. 99 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 10 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) • The adviser has assets under management in excess of five hundred million dollars ($500,000,000). Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be issued by an issuer rated in a rating category of “A,” its equivalent or higher rating for the issuer’s debt as provided by an NRSRO and rated in a rating category of “AA” or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease- backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum maturity is five years. Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank that are eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. S. Placement Service Deposits. A maximum of 30% of the portfolio may be invested in placement service deposits. Deposits placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit insurance. 9.1 Investment Pools: The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments: 100 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 11 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City’s deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco with a value of 105% of the principal and accrued interest, government securities with a value of 110 % of principal and accrued interest or . California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral will always be handled as required by the California Government Code. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of th e underlying securities is brought back up to 102% no later than the next business day. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.The right of collateral substitution is granted. 12.0 Safekeeping and Custody: 101 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 12 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All deliverable securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry account may be used for book entry delivery. 13.0 Diversification: The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP’s). A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 14.0 Maximum Maturities: To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, Tthe City will not directly invest in securities 102 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 13 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment. 15.0 Internal Control: The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance/Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Finance Manager 16.0 Performance Standards: The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark. 17.0 Reporting: 103 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 14 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: Type of investment Institutional issuer Purchase date Date of maturity Amount of deposit or cost of the investment Face value of the investment Current market value of securities and source of valuation Rate of interest Interest earnings Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance Statement on availability of funds to meet the next six month’s obligations Monthly and year-to-date budget amounts for interest income Percentage of portfolio by investment type Days to maturity for all investments Comparative report on monthly investment balances & interest yields Monthly transactions Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report. 18.0 Investment Policy Review and Adoption: This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year. 104 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 15 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %). BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an 105 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 16 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state or local agency to public entities for the investment of public funds. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. 106 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 17 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer). PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. 107 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 18 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 108 RESOLUTION NO. 2018-__________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF COUNCIL POLICY 220-01, THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES; AMENDING THE EXISTING POLICY; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER WHEREAS, the City of Chula Vista’s “Investment Policy and Guidelines,” adopted on May 23, 2017 by Resolution No. 2017-078 (the Policy), is intended to provide direction for the prudent investment of temporarily idle cash and to maximize the efficiency of the cash management process; and WHEREAS, the stated goal of the Policy is to enhance the economic condition of the City while ensuring the safety of funds invested; and WHEREAS, the Policy includes a list of specific investment instruments available pursuant to California Government Code sections 53600, et. seq.; and WHEREAS, each investment transaction is made in the context of: (i) ensuring the "safety" of principal; (ii) investing only for that timeframe during which the cash is not needed for operational purposes ("liquidity"); and (iii) seeking the highest return possible ("yield"), provided that the first two factors are met; and WHEREAS, in accordance with Section 18.0 of the Policy, staff has provided the City Council with a copy of the City’s Investment Policy; and WHEREAS, staff recommends that the Policy be amended to clarify policy requirements and update Government Code references; and WHEREAS, City staff recommends that the Policy be amended to reflect these changes; as reflected in the attached Exhibit 1; and WHEREAS, pursuant to California Government Code section 53607, the City Council may delegate the authority to conduct investment activities of the City to the Finance Director/Treasurer on an annual basis. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that: It acknowledges receipt of council policy 220-01, the City of Chula Vista Investment Policy and Guidelines (the “Policy”); and 109 Resolution No. __________ Page 2 Amends the existing Policy, as reflected in Exhibit 1; and Delegates the authority to conduct and supervise the investment activities of the City to the Director of Finance/Treasurer. Presented by Approved as to form by _____________________________________________ David Bilby Glen R. Googins Director of Finance/Treasurer City Attorney 110 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 1 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) 1.0 Purpose: This “Investment Policy and Guidelines” (the “Investment Policy”) Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the “City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. 3.0 Scope: This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds: The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual financial report and include: General Fund Special Revenue Funds Capital Project Funds Enterprise Funds Trust and Agency Funds Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. 111 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 2 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) Bond proceeds shall be invested in the investments permitted by the applicable bond documents. If the bond documents are silent as to the permitted investments, the bond proceeds will be invested in the securities permitted by this Policy. Notwithstanding the other provisions of this Policy, the percentage limitations listed elsewhere in this Policy do not apply to bond proceeds. 4.0 Prudence: The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”. This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: “ … all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” 4.1 Personal Responsibility: The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 112 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 3 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity: The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments: The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.0. 6.0 Delegation of Authority: The City Council delegates responsibility for the investment program to the Director of Finance/Treasurer for a period of one year. Subject to review, the City Council may renew the delegation of authority each year. The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance/Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. 7.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the 113 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 4 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)]. 8.0 Authorized Financial Dealers and Institutions: For any transactions executed by the City, theThe City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody’s Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency 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. To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions. Any transactions not executed directly with the issuer shall be made with from approved brokers/dealers. In order to be approved by the City, the broker/dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional broker/dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the broker/dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government 114 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 5 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized issuers and broker/dealers to conduct transactions on behalf of the City. 9.0 Authorized & Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS’ ACCEPTANCES. A maximum of 40% of the portfolio may be invested in bankers’ acceptances. The maximum maturity is 180 days. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in a rating category as provided by a nationally recognized statistical rating organization (NRSRO). B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD’s) differ from other certificates of deposit by their liquidity. NCD’s are traded actively in secondary markets. NCD’s with maturities under one year must be rated in a rating category of “A-1,” its equivalent, or better by a NRSRO. NCD’s with maturities in 115 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 6 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) excess of one year must be rated in a rating category of “A,” its equivalent or better by a NRSRO. In compliance with California Code 53601.8, all FDIC insured CD’s, when placed through a deposit placement service, will be measured for compliance with NCD’s. C. COMMERCIAL PAPER. A maximum of 25% of the portfolio may be invested in commercial paper. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. c. Has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Bonds must have a rating in a rating category of “A,” its equivalent or better from a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. 116 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 7 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) G. REPURCHASE AGREEMENT, maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. There is no limit on the percentage of the portfolio that can be invested in this category. H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio. c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. e) For purposes of this policy, “significant banking relationship” means any of the following activities of a bank: 117 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 8 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness. ii. Financing of a local agency’s activities. iii. Acceptance of a local agency’s securities or funds as deposits. I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. J. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit). The maximum maturity is 3 years. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made at any time in certificates of deposit issued by a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. There is no limit on the percentage of the portfolio that can be invested in this category. K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. M. MONEY MARKET FUNDS. A maximum of 20% of the portfolio may be invested in money 118 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 9 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) market funds. No more than 10% of the City’s portfolio may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, and repurchase agreements collateralized with U.S. Treasuries with a weighted average of 60 days or less. They must have the highest rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience man aging money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares may not include commission. N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County. The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit. O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $50 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). There is no limit on the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (qo) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: • The adviser is registered or exempt from registration with the Securities and Exchange Commission. • The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (qo) Government Code Section 53601, inclusive. 119 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 10 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) • The adviser has assets under management in excess of five hundred million dollars ($500,000,000). Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be issued by an issuer rated in a rating category of “A,” its equivalent or higher rating for the issuer’s debt as provided by an NRSRO and rated in a rating category of “AA” or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease- backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum maturity is five years. Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank that are eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. S. Placement Service Deposits. A maximum of 30% of the portfolio may be invested in placement service deposits. Deposits placed through a deposit placement service shall meet the requirements under Government Code Section 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of each certificate of deposit shall at all times be insured by federal deposit insurance. 9.1 Investment Pools: The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments: 120 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 11 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City’s deposits by pledging letters of credit issued by the Federal Home Loan Bank of San Francisco with a value of 105% of the principal and accrued interest, government securities with a value of 110 % of principal and accrued interest or . California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral will always be handled as required by the California Government Code. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of th e underlying securities is brought back up to 102% no later than the next business day. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation.The right of collateral substitution is granted. 12.0 Safekeeping and Custody: 121 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 12 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All deliverable securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry account may be used for book entry delivery. 13.0 Diversification: The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP’s). A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 14.0 Maximum Maturities: To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, Tthe City will not directly invest in securities 122 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 13 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment. 15.0 Internal Control: The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance/Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Finance Manager 16.0 Performance Standards: The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark. 17.0 Reporting: 123 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 14 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: Type of investment Institutional issuer Purchase date Date of maturity Amount of deposit or cost of the investment Face value of the investment Current market value of securities and source of valuation Rate of interest Interest earnings Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance Statement on availability of funds to meet the next six month’s obligations Monthly and year-to-date budget amounts for interest income Percentage of portfolio by investment type Days to maturity for all investments Comparative report on monthly investment balances & interest yields Monthly transactions Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report. 18.0 Investment Policy Review and Adoption: This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year. 124 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 15 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %). BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an 125 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 16 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) exchange of money for the securities. Delivery versus receipt is delivery of securities with an exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state or local agency to public entities for the investment of public funds. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. 126 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 17 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer). PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. 127 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 05/2223/20187 18 OF 18 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-078 (05/23/2017); 2018-XXX (05/22/2018) TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 128 City of Chula Vista Staff Report File#:18-0203, Item#: 7. PRESENTATION OF THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2018/2019 RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2018/2019 FOR EACH AGENCY AS THEIR PROPOSED BUDGETS,RESPECTIVELY,AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME RECOMMENDED ACTION Council/Successor Agency/Housing Authority hear the presentation,provide comments,and proposed changes.If Council is prepared to approve the budget,with or without modifications,as the City Council Proposed Budget,the City Council/Successor Agency/Housing Authority may adopt the resolution and set the time and place for a public hearing for final consideration and adoption of the budget. SUMMARY In accordance with the City Charter,the City Manager has submitted the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of fiscal year 2018-19. Staff recommends that the Council/Successor Agency/Housing Authority hear the presentation, provide comments,and proposed changes (if any).If Council is prepared to approve the budget,with or without modifications,as the City Council Proposed Budget,the City Council/Successor Agency/Housing Authority may adopt the resolution and set the time and place for a public hearing for final consideration and adoption of the budget. ENVIRONMENTAL REVIEW Environmental Notice The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA)and has determined that filing of the quarterly financial status report is not a “Project”as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment;therefore,pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. 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 City of Chula Vista Printed on 5/17/2018Page 1 of 3 powered by Legistar™ 129 File#:18-0203, Item#: 7. Not applicable DISCUSSION In accordance with the City Charter,the City Manager has submitted the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of fiscal year 2018-19. The City Manager has prepared and provided the proposed operating and capital improvement budgets to the City Council,and has also prepared the proposed budgets for the Successor Agency to the Redevelopment Agency and the Housing Authority,and presented them to their respective governing bodies,for fiscal year 2018-2019.The City Manager’s Proposed Budget for Fiscal Year 2018-19 has been made available on the City’s website and a hard copy of the document is available for public review at the City Clerk’s Office.Staff is now seeking City Council input on the City Manager’s Proposed Budget for fiscal year 2018-19.Once Council has approved the City Manager’s Proposed Budget for fiscal year 2018-19 as their own,with or without changes,staff will make the City Council’s Proposed Budget for fiscal year 2018-19 available for public review by publishing the budget on the City’s website and making a copy available at the City Clerk’s Office at least ten days prior to the public hearing.If Council chooses to adopt the resolution,the public hearing for the final consideration and adoption of the budget will be held on June 12, 2018. The Political Reform Act requires every local agency to amend its conflict of interest code when revisions are necessitated by changed circumstances.The proposed resolution adopts an amended appendix to the City’s conflict of interest code to add new classifications to the list of officials and designated employees of the City who are required to file periodic statements of economic interests, and establishes the disclosure categories under which the classifications would be required to file. Additionally,it requires the designated officials and employees to complete biennial ethics training, pursuant to AB 1234. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council of the City of Chula Vista 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 of Chula Vista 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 action supports the Operational Excellence goal by communicating the City’s projected financial position for the current fiscal year 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 City of Chula Vista Printed on 5/17/2018Page 2 of 3 powered by Legistar™ 130 File#:18-0203, Item#: 7. There is no fiscal impact as a result of this action in the current fiscal year. ONGOING FISCAL IMPACT There is no fiscal impact as a result of the City Council accepting the City Manager’s Proposed Fiscal Year 2018-19 budget as their own.With approval of the resolution,Council will set the time and date for the final consideration and adoption of the fiscal year 2018-19 budget. Council changes to the proposed budget may result in a fiscal impact. ATTACHMENTS Staff Contact:David Bilby, Finance Department City of Chula Vista Printed on 5/17/2018Page 3 of 3 powered by Legistar™ 131 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2018-2019 FOR EACH AGENCY AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME WHEREAS, the City Charter requires that the City Manager submit the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of such fiscal year; and WHEREAS, the City Manager has prepared and provided the proposed operating and capital improvement budgets to the City Council, and has also prepared the proposed budgets for the Successor Agency to the Redevelopment Agency and the Housing Authority, and presented them to their respective governing bodies, for fiscal year 2018-2019; and WHEREAS, the City Council, Successor Agency to the Redevelopment Agency and Housing Authority have received the City Manager’s budget report and the respective proposed budgets for each agency for review and approval as their proposed budgets; and WHEREAS, a public hearing shall be held prior to adoption of the proposed budgets and the proposed budgets, and notice of the proposed hearing, shall be published at least ten days prior to the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council/Successor Agency to the Redevelopment Agency/Housing Authority of the City of Chula Vista that the City Manager’s budget report for fiscal year 2018-19 is approved, and the City Manager’s proposed operating and capital improvement budgets for fiscal year 2018-19 for each agency are approved as their respective proposed budgets. BE IT FURTHER RESOLVED that a public hearing shall be held on the proposed budgets on June 12, 2018, and that the City Clerk is directed to publish the proposed budgets, in the form presented, for public inspection, and provide notice of the public hearing, at least ten days prior to the hearing date. 132 Presented by Approved as to form by David Bilby Glen R. 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^ĞƌǀŝĐĞƐ ŽŵŵƵŶŝƚLJ ^ĞƌǀŝĐĞƐ ŶŐŝŶĞĞƌŝŶŐΘ ĂƉŝƚĂůWƌŽũĞĐƚƐ >ŝďƌĂƌLJĞǀĞůŽƉŵĞŶƚ ^ĞƌǀŝĐĞƐ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJƚŽZ &ŝŶĂŶĐĞ ĐŽŶŽŵŝĐ ĞǀĞůŽƉŵĞŶƚ ŽŵŵƵŶŝĐĂƚŝŽŶƐ ,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJ ZĞĐƌĞĂƚŝŽŶ ǀ 140 ǀŝ 141 ʹͲͳͻ ďŽƵƚŚƵůĂsŝƐƚĂ dŽĚĂLJƚŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂŝƐůŽĐĂƚĞĚĂƚƚŚĞĐĞŶƚĞƌŽĨ ŽŶĞŽĨƚŚĞƌŝĐŚĞƐƚĐƵůƚƵƌĂů͕ĞĐŽŶŽŵŝĐĂŶĚ ĞŶǀŝƌŽŶŵĞŶƚĂůůLJĚŝǀĞƌƐĞnjŽŶĞƐŝŶƚŚĞhŶŝƚĞĚ^ƚĂƚĞƐ͘/ƚŝƐ ƚŚĞ ƐĞĐŽŶĚͲůĂƌŐĞƐƚ ŝƚLJ ŝŶ ^ĂŶ ŝĞŐŽ ŽƵŶƚLJ ǁŝƚŚ Ă ƉŽƉƵůĂƚŝŽŶ ŽĨ ĂƉƉƌŽdžŝŵĂƚĞůLJ Ϯϲϳ͕ϬϬϬ͘ ŚƵůĂ sŝƐƚĂ ďŽĂƐƚƐŵŽƌĞƚŚĂŶϱϬƐƋƵĂƌĞŵŝůĞƐŽĨĐŽĂƐƚĂůůĂŶĚƐĐĂƉĞ͕ ĐĂŶLJŽŶƐ͕ ƌŽůůŝŶŐ ŚŝůůƐ͕ ŵŽƵŶƚĂŝŶƐ͕ ƋƵĂůŝƚLJ ƉĂƌŬƐ͕ ĂŶĚ ŵŝůĞƐŽĨƚƌĂŝůƐ͘ŚƵůĂsŝƐƚĂŝƐĂůĞĂĚĞƌŝŶĐŽŶƐĞƌǀĂƚŝŽŶ ĂŶĚƌĞŶĞǁĂďůĞĞŶĞƌŐLJ͕ŚĂƐŽƵƚƐƚĂŶĚŝŶŐƉƵďůŝĐƐĐŚŽŽůƐ͕ ĂŶĚŚĂƐďĞĞŶŶĂŵĞĚŽŶĞŽĨƚŚĞƚŽƉƐĂĨĞƐƚĐŝƚŝĞƐŝŶƚŚĞ ĐŽƵŶƚƌLJ͘ dŚƵƐ͕ ƚŚĞ ĐŝƚLJ ƐĞƌǀĞƐ ĂƐ Ă ďĂƐĞ ĨŽƌ ƐƚƌŽŶŐ ĞĚƵĐĂƚŝŽŶ͕ ĐůĞĂŶ ƚĞĐŚŶŽůŽŐLJ͕ ĂŶĚ ĂĚǀĂŶĐĞĚ ŵĂŶƵĨĂĐƚƵƌŝŶŐ ƚŽ ŝƚƐ ŐƌŽǁŝŶŐ ĂŶĚ ǁĞůůͲĞĚƵĐĂƚĞĚ ŵŝĚĚůĞͲĐůĂƐƐ͘ ŚƵůĂsŝƐƚĂŵĞĂŶƐ͞ďĞĂƵƚŝĨƵůǀŝĞǁ͟ĂŶĚƚŚŝƐŝƐƐŚŽǁŶ ƚŚƌŽƵŐŚŐƌĞĂƚLJĞĂƌͲƌŽƵŶĚǁĞĂƚŚĞƌǁŝƚŚŵŝůĞƐŽĨƚƌĂŝůƐ͕ ĐŽĂƐƚůŝŶĞ͕ ĂŶĚ ŵŽƵŶƚĂŝŶƐ͘ dŚĞ ŽƉĞŶ ƐƉĂĐĞ ďĞĐŬŽŶƐ ƌƵŶŶĞƌƐ͕ ŚŝŬĞƌƐ͕ ĐLJĐůŝƐƚƐ͕ ďŝƌĚĞƌƐ͕ ĂŶĚ ŽƵƚĚŽŽƌƐ ĞŶƚŚƵƐŝĂƐƚƐĨƌŽŵƚŚĞďĂLJƚŽƚŚĞůĂŬĞƐ͘dŚĞďĂLJĨƌŽŶƚ͕ƚŚĞ ^ǁĞĞƚǁĂƚĞƌ DĂƌƐŚ EĂƚŝŽŶĂů tŝůĚůŝĨĞ ZĞĨƵŐĞ͕ ĂŶĚ ƚŚĞ >ŝǀŝŶŐŽĂƐƚŝƐĐŽǀĞƌLJĞŶƚĞƌƐŚŽǁĐĂƐĞƚŚĞƵŶŝƋƵĞ ĂŶŝŵĂůƐ ĂŶĚ ƉůĂŶƚƐ ŽĨ ^ŽƵƚŚĞƌŶ ĂůŝĨŽƌŶŝĂ͘ dŚĞ ĐŝƚLJ ƉƌŽǀŝĚĞƐ ĞŶŽƵŐŚ ƐĞƌǀŝĐĞƐ ƚŽ ĞŶũŽLJ ĞǀĞƌLJ ĞŶĚ ŽĨ ŝƚƐ ͞ďĞĂƵƚŝĨƵůǀŝĞǁ͘͟dŚĞŚƵůĂsŝƐƚĂDĂƌŝŶĂΘzĂĐŚƚůƵď ĂǁĂŝƚƐŬĂLJĂŬĞƌƐĂŶĚďŽĂƚĞƌƐ͘ĚĚŝƚŝŽŶĂůůLJ͕ƚŚĞĂLJƐŚŽƌĞ ŝŬĞǁĂLJŐŝǀĞƐĂƚǁŽͲǁŚĞĞůĞĚƚŽƵƌŽĨŵŽƌĞǁŽŶĚĞƌƐŽŶ ^ĂŶŝĞŐŽĂLJ͘ ^ŚŽƉƉŝŶŐ͕ĚŝŶŝŶŐ͕ĂŶĚĞŶƚĞƌƚĂŝŶŵĞŶƚĂďŽƵŶĚǁŝƚŚƚǁŽ ŵĂũŽƌ ŵĂůůƐ ĂŶĚ Ă ŚŝƐƚŽƌŝĐ ĚŽǁŶƚŽǁŶ ĚŝƐƚƌŝĐƚ͘ KƚĂLJ ZĂŶĐŚ dŽǁŶ ĞŶƚĞƌ ŝƐ ĂŶ ĞdžĐŝƚŝŶŐ ŽƵƚĚŽŽƌ ƐŚŽƉƉŝŶŐ͕ ĚŝŶŝŶŐ͕ĂŶĚĞŶƚĞƌƚĂŝŶŵĞŶƚĚĞƐƚŝŶĂƚŝŽŶ͘ ŚƵůĂsŝƐƚĂĞŶƚĞƌŝŶƚŚĞĚŽǁŶƚŽǁŶĂƌĞĂďŽĂƐƚƐŵĂũŽƌ ƌĞƚĂŝůĞƌƐ͕ ĚŝŶŝŶŐ͕ ŵŽǀŝĞ ƚŚĞĂƚĞƌƐ͕ ĂŶĚ ŵŽƌĞ ƚŚĂŶ ϭϬϬ ĨŝŶĞƐƉĞĐŝĂůƚLJƐŚŽƉƐ͘ŶĚ͕dŚŝƌĚǀĞŶƵĞsŝůůĂŐĞ͕ďŝůůĞĚĂƐ ƚŚĞĐƵůƚƵƌĂůĐĞŶƚĞƌŽĨƚŚĞĐŝƚLJ͕ĨĞĂƚƵƌĞƐŚŝƐƚŽƌŝĐ ďƵŝůĚŝŶŐƐ͕ ƵŶŝƋƵĞ ƐŚŽƉƐ͕ Ă ǁĞĞŬůLJ ĨĂƌŵĞƌƐ ŵĂƌŬĞƚ͕ ůĂŶĚŵĂƌŬ ƌĞƐƚĂƵƌĂŶƚƐ͕ ĂŶĚ ƐĞĂƐŽŶĂů ŽƵƚĚŽŽƌ ŵƵƐŝĐ ĐŽŶĐĞƌƚƐ͘ /ƚ͛Ɛ ĂůƐŽ ŚŽŵĞ ƚŽ Ă ďƌĞǁĞƌLJ ĂŶĚ ƚĂƐƚŝŶŐ ƌŽŽŵƐ͘ ƐƚĂďůŝƐŚĞĚ ŶĞŝŐŚďŽƌŚŽŽĚƐ͕ ŵŽĚĞƌŶ ĐŽŵŵƵŶŝƚŝĞƐ͕ ƐƚĂƌƚͲƵƉ ĨŝƌŵƐ͕ ĐŽƌƉŽƌĂƚŝŽŶƐ͕ ŶĂƚŝŽŶĂůůLJ ƌĞĐŽŐŶŝnjĞĚ ĞŶƚĞƌƚĂŝŶŵĞŶƚ ǀĞŶƵĞƐ͕ ƚŚĞ ŚƵůĂ sŝƐƚĂ ůŝƚĞ ƚŚůĞƚĞ dƌĂŝŶŝŶŐ ĞŶƚĞƌ͕ ϲϱ ƉĂƌŬƐ͕ ĂŶ ĂǁĂƌĚ ǁŝŶŶŝŶŐ ŶĂƚƵƌĞ ĐĞŶƚĞƌĂŶĚĂŚŝƐƚŽƌŝĐĚŽǁŶƚŽǁŶĂůůĐŽŶƚƌŝďƵƚĞƚŽŚƵůĂ sŝƐƚĂ͛ƐĂƚƚƌĂĐƚŝŽŶĨŽƌďŽƚŚĨĂŵŝůŝĞƐĂŶĚďƵƐŝŶĞƐƐĞƐ͘ &ŽƌŵŽƌĞŝŶĨŽƌŵĂƚŝŽŶƌĞŐĂƌĚŝŶŐƚŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ͕ ƉůĞĂƐĞǀŝƐŝƚŽƵƌǁĞďƐŝƚĞĂƚǁǁǁ͘ĐŚƵůĂǀŝƐƚĂĐĂ͘ŐŽǀ͘ ǀŝŝ 142 ʹͲͳͻ 'ĞŶĞƌĂů/ŶĨŽƌŵĂƚŝŽŶ /ŶĐŽƌƉŽƌĂƚĞĚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘ϭϵϭϭ 'ŽǀĞƌŶŵĞŶƚ͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘ŽƵŶĐŝůͬDĂŶĂŐĞƌ ŽŶĚZĂƚŝŶŐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘Ͳ WŽƉƵůĂƚŝŽŶďLJ ƚŚŶŝĐ'ƌŽƵƉ ^ŽƵƌĐĞ͗ ^ĂŶ ŝĞŐŽ ƐƐŽĐŝĂƚŝŽŶ ŽĨ 'ŽǀĞƌŶŵĞŶƚƐ͕ ƵƌƌĞŶƚ ƐƚŝŵĂƚĞƐ ĚƵĐĂƚŝŽŶĂůƚƚĂŝŶŵĞŶƚϭ ϭĂƐĞĚŽŶƉŽƉƵůĂƚŝŽŶϮϱLJĞĂƌƐĂŶĚŽǀĞƌ͘ ^ŽƵƌĐĞ͗h͘^͘ĞŶƐƵƐƵƌĞĂƵ͕ϮϬϭϱŵĞƌŝĐĂŶŽŵŵƵŶŝƚLJ^ƵƌǀĞLJ WŽƉƵůĂƚŝŽŶ WŽƉƵůĂƚŝŽŶ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘Ϯϲϳ͕ϱϬϯ DĞĚŝĂŶŐĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘ϯϰ͘Ϯ ^ŽƵƌĐĞ͗ WŽƉƵůĂƚŝŽŶ ĚĂƚĂ͕ ĂůŝĨŽƌŶŝĂ ĞƉĂƌƚŵĞŶƚ ŽĨ &ŝŶĂŶĐĞ͘ DĞĚŝĂŶŐĞ͕^ĂŶŝĞŐŽƐƐŽĐŝĂƚŝŽŶŽĨ'ŽǀĞƌŶŵĞŶƚƐĞƐƚŝŵĂƚĞƐ͘ ŚƵůĂsŝƐƚĂWŽƉƵůĂƚŝŽŶ'ƌŽǁƚŚ EŽƚĞ͗dŚŝƐĚĂƚĂƌĞƉƌĞƐĞŶƚƐĐĂůĞŶĚĂƌLJĞĂƌƉŽƉƵůĂƚŝŽŶŶƵŵďĞƌƐ͘ ΎϮϬϭϴƉŽƉƵůĂƚŝŽŶŶƵŵďĞƌƐĂƌĞƉƌŽũĞĐƚŝŽŶƐ͘ ^ŽƵƌĐĞ͗ĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞĂŶĚŝƚLJŽĨŚƵůĂsŝƐƚĂ ƐƚĂĨĨ ůĞŵĞŶƚĂƌLJ^ĐŚŽŽůƐ ŚƵůĂsŝƐƚĂ ůĞŵĞŶƚĂƌLJ^ĐŚŽŽůŝƐƚƌŝĐƚ &zϮϬϭϴĂƚĂ ǁǁǁ͘ĐǀĞƐĚ͘ŽƌŐ ;ϲϭϵͿϰϮϱͲϵϲϬϬ EƵŵďĞƌŽĨ^ĐŚŽŽůƐϭ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘͘͘͘ϰϴ WƌŽũĞĐƚĞĚ ŶƌŽůůŵĞŶƚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙Ϯϵ͕ϲϬϬ ϭ/ŶĐůƵĚĞƐϱĚĞƉĞŶĚĞŶƚĂŶĚϮŝŶĚĞƉĞŶĚĞŶƚĐŚĂƌƚĞƌƐĐŚŽŽůƐ͘ ^ĞĐŽŶĚĂƌLJ^ĐŚŽŽůƐ ^ǁĞĞƚǁĂƚĞƌhŶŝŽŶ,ŝŐŚ^ĐŚŽŽůŝƐƚƌŝĐƚ &zϮϬϭϴĂƚĂ ǁǁǁ͘ƐǁĞĞƚǁĂƚĞƌƐĐŚŽŽůƐ͘ŽƌŐ ;ϲϭϵͿϲϵϭͲϱϱϬϬ EƵŵďĞƌŽĨ^ĐŚŽŽůƐϭ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘͘ϯϮ WƌŽũĞĐƚĞĚ ŶƌŽůůŵĞŶƚ͙͙͙͙͙͙͙͙͙͙͙͙͙͙ϰϮ͕ϬϬϬ ϭ/ŶĐůƵĚĞƐ ŵŝĚĚůĞ ƐĐŚŽŽůƐ͕ ŚŝŐŚ ƐĐŚŽŽůƐ͕ ĂĚƵůƚ ƐĐŚŽŽůƐ͕ ĂŶĚ ĂůƚĞƌŶĂƚŝǀĞĞĚƵĐĂƚŝŽŶƐŝƚĞƐ͘ ,ŝƐƉĂŶŝĐ͕ ϱϲй tŚŝƚĞ͕ ϮϮй ůĂĐŬ͕ϲй KƚŚĞƌ͕ϯй ƐŝĂŶͬ WĂĐŝĨŝĐ /ƐůĂŶĚĞƌ͕ ϭϯй >ĞƐƐƚŚĂŶ ϵƚŚŐƌĂĚĞ ϴ͘ϱй ϵƚŚƚŽϭϮƚŚ ŐƌĂĚĞ͕ŶŽ ĚŝƉůŽŵĂ ϵ͘ϯй ,ŝŐŚƐĐŚŽŽů ŐƌĂĚƵĂƚĞ ϭϴ͘ϴй ^ŽŵĞ ĐŽůůĞŐĞ͕ŶŽ ĚĞŐƌĞĞ Ϯϰ͘ϴй ƐƐŽĐŝĂƚĞΖƐ ĚĞŐƌĞĞ ϴ͘ϵй ĂĐŚĞůŽƌΖƐ ĚĞŐƌĞĞ Ϯϭ͘ϯй 'ƌĂĚƵĂƚĞŽƌ ƉƌŽĨĞƐƐŝŽŶĂů ĚĞŐƌĞĞϴ͘ϱй Ϭ ϱϬ ϭϬϬ ϭϱϬ ϮϬϬ ϮϱϬ ϯϬϬ ϬϰϬϱϬϲϬϳϬϴϬϵϭϬϭϭϭϮϭϯϭϰϭϱϭϲϭϳϭϴΎdŚŽƵƐĂŶĚƐǀŝŝŝ 143 ʹͲͳͻ ,ŽƵƐŝŶŐ ,ŽƵƐŝŶŐhŶŝƚƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘ϴϰ͕ϮϭϬ WĞƌƐŽŶƐƉĞƌ,ŽƵƐĞŚŽůĚ͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘ϯ͘ϯϬ sĂĐĂŶĐLJZĂƚĞ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘ϰ͘ϰй ^ŽƵƌĐĞ͗ĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ ,ŽƵƐĞŚŽůĚ/ŶĐŽŵĞ ^ŽƵƌĐĞ͗ ^ĂŶ ŝĞŐŽ ƐƐŽĐŝĂƚŝŽŶ ŽĨ 'ŽǀĞƌŶŵĞŶƚƐ͕ ƵƌƌĞŶƚ ƐƚŝŵĂƚĞƐ ,ŽƵƐŝŶŐdLJƉĞ ^ŝŶŐůĞ&ĂŵŝůLJ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘ϱϯ͕ϲϮϵ DƵůƚŝƉůĞ&ĂŵŝůLJ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘Ϯϲ͕ϱϭϲ DŽďŝůĞ,ŽŵĞƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘͘ϰ͕Ϭϲϱ ^ŽƵƌĐĞ͗ĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ WƵďůŝĐ^ĂĨĞƚLJ &ŝƌĞhŶŝĨŽƌŵ^ƚƌĞŶŐƚŚ͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘͘͘ϭϮϬ &ŝƌĞ^ƚĂƚŝŽŶƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘ϵ ŵĞƌŐĞŶĐLJĂůůƐƚŽ&ŝƌĞĞƉĂƌƚŵĞŶƚϭ͙͙͙͘͘͘Ϯϭ͕ϰϰϱ WŽůŝĐĞhŶŝĨŽƌŵ^ƚƌĞŶŐƚŚϮ͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘Ϯϯϳ ŝƚŝnjĞŶ/ŶŝƚŝĂƚĞĚĂůůƐĨŽƌ^ĞƌǀŝĐĞϯ͙͙͙͙͙͘͘͘͘͘͘ϲϰ͕Ϯϵϭ ϭ&ŝƌĞĐĂůůƐĨŽƌƐĞƌǀŝĐĞĚĂƚĂŝƐĨŽƌĐĂůĞŶĚĂƌLJĞĂƌϮϬϭϳ͘ ϮWŽůŝĐĞƵŶŝĨŽƌŵƐƚƌĞŶŐƚŚĚŽĞƐŶŽƚŝŶĐůƵĚĞϭϮĨƌŽnjĞŶƉŽƐŝƚŝŽŶƐ͘ ^ŽƵƌĐĞ͗ŝƚLJŽĨŚƵůĂsŝƐƚĂ^ƚĂĨĨ ϯWŽůŝĐĞĐĂůůƐĨŽƌƐĞƌǀŝĐĞĚĂƚĂŝƐĨŽƌĨŝƐĐĂůLJĞĂƌϮϬϭϳ͘ ŽŵŵƵŶŝƚLJ&ĂĐŝůŝƚŝĞƐ ĐƌĞƐŽĨĞǀĞůŽƉĞĚWĂƌŬƐϭ͙͙͙͙͙͙͙͙͙͘͘͘͘ϲϲϵ͘ϰϭ dŽƚĂůEƵŵďĞƌŽĨWĂƌŬƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘ϲϱ >ŝďƌĂƌŝĞƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘͘ϯ ZĞĐƌĞĂƚŝŽŶ&ĂĐŝůŝƚŝĞƐ͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͙͘͘͘͘ϭϭ ϭĐƚƵĂůŝƚLJKǁŶĞƌƐŚŝƉWĂƌŬĐƌĞĂŐĞ ^ŽƵƌĐĞ͗ŝƚLJŽĨŚƵůĂsŝƐƚĂƐƚĂĨĨ ŽŶƐƚƌƵĐƚŝŽŶWĞƌŵŝƚƐ ^ŽƵƌĐĞ͗ŝƚLJŽĨŚƵůĂsŝƐƚĂƐƚĂĨĨ EŽƚĞ͗&zϭϴĚĂƚĂŝƐĂƐŽĨϬϰͬϲͬϭϴ ϵй ϭϮй ϭϯй ϭϮй ϭϭй ϭϱй ϭϬй ϳй ϲй ϯй фΨϭϱ͕ϬϬϬ Ψϭϱ͕ϬϬϬͲΨϮϵ͕ϵϵϵ ΨϯϬ͕ϬϬϬͲΨϰϰ͕ϵϵϵ Ψϰϱ͕ϬϬϬͲΨϱϵ͕ϵϵϵ ΨϲϬ͕ϬϬϬͲΨϳϰ͕ϵϵϵ Ψϳϱ͕ϬϬϬͲΨϵϵ͕ϵϵϵ ΨϭϬϬ͕ϬϬϬͲΨϭϮϰ͕ϵϵϵ ΨϭϮϱ͕ϬϬϬͲΨϭϰϵ͕ϬϬϬ ΨϭϱϬ͕ϬϬϬͲΨϭϵϵ͕ϵϵϵ хсΨϮϬϬ͕ϬϬϬ Ͳ ϭ͕ϬϬϬ Ϯ͕ϬϬϬ ϯ͕ϬϬϬ ϰ͕ϬϬϬ &zϬϯ &zϬϰ &zϬϱ &zϬϲ &zϬϳ &zϬϴ &zϬϵ &zϭϬ &zϭϭ &zϭϮ &zϭϯ &zϭϰ &zϭϱ &zϭϲ &ϭϳ &zϭϴ DƵůƚŝͲ&ĂŵŝůLJ ^ŝŶŐůĞ&ĂŵŝůLJ ŝdž 144 dž 145 FY2019 City of Chula Vista Proposed Budget Table of Contents BUDGET MESSAGE 1 Letter from the City Manager 3 Budget Process 5 Economic Overview 11 All Funds Summary 15 Summary of Staffing Changes 23 GENERAL FUND 33 General Fund Expenditure Summary 35 General Fund Revenue Summary 49 Department Summary Reports 61 DEVELOPMENT SERVICES FUND 85 SUCCESSOR AGENCY AND HOUSING FUNDS 91 Successor Agency Funds 93 Housing Authority Funds 99 SEWER FUNDS 105 FLEET FUND 113 CAPITAL PROJECT FUNDS 119 DEBT SERVICE FUNDS 131 OTHER FUNDS 141 CAPITAL IMPROVEMENT PROGRAM (CIP) 163 Capital Improvement Program Summary 165 džŝ 146 FY2019 City of Chula Vista Proposed Budget CIP Revenue Summary 167 CIP Expenditure Summary 173 Capital Improvement Projects Summary 180 Five-Year CIP Project Summary Schedule 183 MEASURE P FUND SUMMARY 185 SUMMARY TABLES 191 Fund Appropriations by Department and Expenditure Category 193 Schedule of Revenues 199 Schedule of Interfund Transfers 225 Authorized Positions by Department 233 APPENDIX 245 Fiscal Policies 247 Investment Policies 255 Debt Administration 267 GANN Appropriations Limit 273 Legal Debt Margin 277 Accounting Systems and Budgetary Control 281 List of Acronyms 285 Glossary 291 džŝŝ 147 ʹͲͳͻ dŚĞ ďƵĚŐĞƚ ĚŽĐƵŵĞŶƚ ŝƐ ŽƌŐĂŶŝnjĞĚ ŝŶ Ă ŵĂŶŶĞƌ ƚŽ ĨĂĐŝůŝƚĂƚĞ Ă ŐĞŶĞƌĂů ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƚŚĞ ŝƚLJ͛Ɛ ĨŝƐĐĂů ƐƚĂƚƵƐ͕ƚŽƉƌĞƐĞŶƚŵĂŶĂŐĞŵĞŶƚ͛ƐĂƐƐĞƐƐŵĞŶƚŽĨŵĂũŽƌ ŝƐƐƵĞƐ ĂŶĚ͕ ĨŝŶĂůůLJ͕ ƚŽ ƉƌĞƐĞŶƚ ƚŚĞ ƉůĂŶ ĨŽƌ ĂůůŽĐĂƚŝŶŐ ƌĞƐŽƵƌĐĞƐ ƚŽ ĂĚĚƌĞƐƐ ƚŚŽƐĞ ŝƐƐƵĞƐ ĚƵƌŝŶŐ ƚŚĞ ĐŽŵŝŶŐ ĨŝƐĐĂů LJĞĂƌ͘ dŚĞ ďƵĚŐĞƚ ĚŽĐƵŵĞŶƚ ŝƐ ŽƌŐĂŶŝnjĞĚ ĂƐ ĨŽůůŽǁƐ͗ ƵĚŐĞƚ 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program for fiscal year 2019. The combined budget for all City funds totals $347.5 million. This amount includes a General Fund operating budget of $174.7 million and a Capital Improvement Program (CIP) budget of $30.1 million. The General Fund presented in this document is balanced and includes funding for programs supported by the City Council in prior fiscal years. Despite an extremely strained financial outlook, the City continues to see revenue growth, infrastructure improvements, and growth in commercial and residential development. Positive revenue growth is being outpaced by pension and health care cost increases and will continue to be a challenge in the coming years. The City will continue to implement efficiency measures to help mitigate the impacts of the cost increases. The City continues to implement new ways to maximize limited resources to deliver high quality services to our community. In preparing the General Fund budget for fiscal year 2018-19, staff focused on the following budget development goals: x Maintain service levels and operating hours as reflected in the City Council’s 2018 adopted budget x Fund the highest level of municipal services possible based on available resources x Make significant progress on key programs and projects in support of the City’s Strategic Plan x Continue growing Chula Vista’s financial base x Continue to improve efficiency and effectiveness of government services through the implementation of Continuous Improvement principles x Use one-time funds to balance the budget The City’s General Fund reflects modest growth in most major revenue sources. In preparing the operating budget, significant increases in pension and health care expenditures outweighed anticipated revenue growth which resulted in a projected budget deficit. As a result, departments were asked to identify cost saving measures or program revenue increases to balance the budget. Those measures have resulted in the balanced budget being presented to you for your consideration. Budget Highlights The following highlights some of the fiscal year 2019 City services and programs: x Increase in public safety personnel and equipment o The adopted budget includes the funding of 5 Peace Officers to the Police Department o Deployment of 12 full time firefighters using the SAFER grant received in fiscal year 2017- 18 o Replacement of obsolete and aging fire and police vehicles x Significant increase in infrastructure funding o Second full-year of Measure P funding with $16.7 million allocated for infrastructure improvements. o Adopted Measure P budget includes funding for residential street repair, sport court repairs, renovation of Loma Verde Recreation Center, Woman’s Club, Civic Center and South Libraries, Norman Park Senior Center, parks enhancements, traffic signal system improvements and other much needed infrastructure improvement projects. o Citizens’ Oversight Committee affirmed that the adopted fiscal year budget is in compliance with the Infrastructure, Facilities and Equipment Expenditure Plan. 3 154 FY2019 City of Chula Vista Proposed Budget x Funding of several City initiatives: o Bayfront Development o Smart City Strategic Action Plan o Master Plan for University and Innovation District o Climate Action Plan 2020 Update with CCA outreach and analysis x Supports residential and commercial development o Increased hotel tax revenue with opening of a new hotel on the east side of Chula Vista o Development underway for more than 1,000 residential units o New 300,000-square-foot Class A Office complex in Millenia in process x The City Manager’s Proposed Budget for Fiscal year 2019 is balanced with no impact to the General Fund reserves ACKNOWLEDGEMENT Staff developed a budget for fiscal year 2019 that is both responsive to community needs and continues to fund core services most important to our community. City staff is the key component in delivering high quality municipal services to our residents. I am proud of the men and women who work for the City of Chula. They work tirelessly to deliver the best services we can to our community with the resources we have. I would like to thank the City Council and Executive Team for their leadership and support. Finally, I would like to recognize the Finance Department for their exceptional work in once again preparing a balanced budget using good financial management practices. Respectfully, Gary Halbert City Manager 4 155 ʹͲͳͻ 5 156 6 157 ʹͲͳͻ dŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ͛Ɛ ďƵĚŐĞƚ ŝƐ ĐƌĞĂƚĞĚ ŝŶ ĐŽŶũƵŶĐƚŝŽŶǁŝƚŚŝƚLJŽƵŶĐŝů͕ŝƚLJƐƚĂĨĨ͕ĂŶĚŝƚLJ ƌĞƐŝĚĞŶƚƐ͘ dŚĞ ďƵĚŐĞƚ ƉƌŽĐĞƐƐ ďĞŐŝŶƐ ĞĂĐŚ LJĞĂƌ ǁŝƚŚ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ƚŚĞ ƉƌĞůŝŵŝŶĂƌLJ ďĂƐĞ ďƵĚŐĞƚ ĂŶĚ ŝƐ ĐŽŵƉůĞƚĞĚǁŝƚŚƚŚĞŝƚLJŽƵŶĐŝůĂĚŽƉƚŝŽŶŽĨƚŚĞďƵĚŐĞƚ ŝŶ:ƵŶĞ͘ dŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵďƵĚŐĞƚĐLJĐůĞďĞŐĂŶŝŶ:ĂŶƵĂƌLJϮϬϭϴ ǁŝƚŚƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨĂƉƌĞůŝŵŝŶĂƌLJďĂƐĞďƵĚŐĞƚďLJ ƚŚĞ &ŝŶĂŶĐĞ ĞƉĂƌƚŵĞŶƚ͛Ɛ ƵĚŐĞƚ ĂŶĚ ŶĂůLJƐŝƐ ƐƚĂĨĨ͘ dŚĞ ďĂƐĞ ďƵĚŐĞƚ ĂĐĐŽƵŶƚƐ ĨŽƌ ƚŚĞ ŶŽƌŵĂů ŽƉĞƌĂƚŝŶŐ ĐŽƐƚƐŽĨƚŚĞŝƚLJ͘dŚƌŽƵŐŚƉƌŝů͕&ŝŶĂŶĐĞǁŽƌŬĞĚǁŝƚŚ ĚĞƉĂƌƚŵĞŶƚƐ ƚŽ ƌĞĨŝŶĞ ƚŚĞ ďĂƐĞ ďƵĚŐĞƚƐ ĂŶĚ ŝŶĐŽƌƉŽƌĂƚĞĚĞƉĂƌƚŵĞŶƚĂůĐŚĂŶŐĞƐƚŽĂůŝŐŶƚŚĞďƵĚŐĞƚƐ ǁŝƚŚĐƵƌƌĞŶƚĚĞƉĂƌƚŵĞŶƚŽƉĞƌĂƚŝŽŶƐ͘ dŚĞ ďƵĚŐĞƚ ƉƌŽĐĞƐƐ ƉƌŽǀŝĚĞĚ ĞƉĂƌƚŵĞŶƚƐ ƚŚĞ ŽƉƉŽƌƚƵŶŝƚLJ ƚŽ ƌĞĐŽŵŵĞŶĚĞĚ ďƵĚŐĞƚ ĂĚũƵƐƚŵĞŶƚƐ ďĂƐĞĚŽŶĚĞƉĂƌƚŵĞŶƚŽƉĞƌĂƚŝŽŶĂůƌĞƋƵĞƐƚƐĂŶĚͬŽƌŽŶĞͲ ƚŝŵĞĨƵŶĚŝŶŐƌĞƋƵĞƐƚƐ͘ZĞƋƵĞƐƚƐĂƌĞƌĞǀŝĞǁĞĚďLJŝƚLJ ĚŵŝŶŝƐƚƌĂƚŝŽŶĂŶĚĂƌĞŝŶĐůƵĚĞĚŝŶƚŚĞŝƚLJDĂŶĂŐĞƌ͛Ɛ WƌŽƉŽƐĞĚƵĚŐĞƚ͘ tŚŝůĞ &ŝŶĂŶĐĞ ƐƚĂĨĨ ǁĂƐ ĚĞǀĞůŽƉŝŶŐ ƚŚĞ ŽƉĞƌĂƚŝŶŐ ďƵĚŐĞƚ͕ ŶŐŝŶĞĞƌŝŶŐΘĂƉŝƚĂůWƌŽũĞĐƚƐƐƚĂĨĨǁŽƌŬĞĚƚŽ ĚĞǀĞůŽƉĂŶĚĨŝŶĂůŝnjĞƚŚĞĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ ;/WͿďƵĚŐĞƚĚƵƌŝŶŐƚŚŝƐƐĂŵĞƚŝŵĞĨƌĂŵĞ͘KŶ:ƵŶĞϱƚŚ͕ ĂƉƵďůŝĐŚĞĂƌŝŶŐǁŝůůďĞŚĞůĚĨŽƌŝƚLJŽƵŶĐŝůƚŽĐŽŶƐŝĚĞƌ ĂŶĚĂĚŽƉƚĂŶĂŵĞŶĚŵĞŶƚƚŽƚŚĞdƌĂŶƐEĞƚ>ŽĐĂů^ƚƌĞĞƚ /ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵŽĨƉƌŽũĞĐƚƐĨŽƌĨŝƐĐĂůLJĞĂƌƐϮϬϭϵ ƚŚƌŽƵŐŚϮϬϮϯ͘ &ŝŶĂŶĐĞǁŝůůƉƌĞƐĞŶƚƚŚĞŝƚLJŽƵŶĐŝůǁŝƚŚĂďĂůĂŶĐĞĚ 'ĞŶĞƌĂů&ƵŶĚďƵĚŐĞƚŽŶDĂLJϮϮ͕ϮϬϭϴ͘dŚĞŝƚLJŽƵŶĐŝů ǁŝůů ƚŚĞŶ ƐĞƚ Ă ƉƵďůŝĐ ŚĞĂƌŝŶŐ ĚĂƚĞ ƉƌŝŽƌ ƚŽ ŽƵŶĐŝů ƚĂŬŝŶŐĂĐƚŝŽŶŽŶƚŚĞĂĚŽƉƚŝŽŶŽĨƚŚĞďƵĚŐĞƚ͘ ŽƉŝĞƐŽĨƚŚĞWƌŽƉŽƐĞĚƵĚŐĞƚǁŝůůďĞŵĂĚĞĂǀĂŝůĂďůĞ ĨŽƌƉƵďůŝĐƌĞǀŝĞǁŝŶƚŚĞKĨĨŝĐĞŽĨƚŚĞŝƚLJůĞƌŬ͕ŝƚLJ ůŝďƌĂƌŝĞƐ͕ĂŶĚƚŚĞŝƚLJ͛ƐǁĞďƐŝƚĞĂƚůĞĂƐƚϭϬĚĂLJƐƉƌŝŽƌƚŽ ƚŚĞƉƵďůŝĐŚĞĂƌŝŶŐ͘ ƐƐĞƚĨŽƌƚŚŝŶƚŚĞŝƚLJŚĂƌƚĞƌ͕ĂƚĂŶLJŵĞĞƚŝŶŐĂĨƚĞƌƚŚĞ ĂĚŽƉƚŝŽŶŽĨƚŚĞďƵĚŐĞƚ͕ƚŚĞŝƚLJŽƵŶĐŝůŵĂLJĂŵĞŶĚŽƌ ƐƵƉƉůĞŵĞŶƚ ƚŚĞ ďƵĚŐĞƚ ďLJ ŵŽƚŝŽŶ ĂĚŽƉƚĞĚ ďLJ ĂĨĨŝƌŵĂƚŝǀĞǀŽƚĞƐŽĨĂƚůĞĂƐƚĨŽƵƌŵĞŵďĞƌƐ͘dŚƌŽƵŐŚŽƵƚ ƚŚĞ LJĞĂƌ͕ ƚŚĞ &ŝŶĂŶĐĞ ĞƉĂƌƚŵĞŶƚ ƉƌŽǀŝĚĞƐ ƚŚĞ ŝƚLJ ŽƵŶĐŝů ǁŝƚŚ ƋƵĂƌƚĞƌůLJ ĨŝŶĂŶĐŝĂů ƐƚĂƚƵƐ ƌĞƉŽƌƚƐ ĐŽŵƉĂƌŝŶŐ ĞdžƉĞŶĚŝƚƵƌĞ ĂŶĚ ƌĞǀĞŶƵĞ ƉƌŽũĞĐƚŝŽŶƐ ƚŽ ďƵĚŐĞƚĞĚ ĂŵŽƵŶƚƐ͕ ŚŝŐŚůŝŐŚƚŝŶŐ ĂŶLJ ǀĂƌŝĂŶĐĞƐ ĂŶĚ ƌĞĐŽŵŵĞŶĚŝŶŐĐŽƌƌĞĐƚŝǀĞĂĐƚŝŽŶƐĂƐŶĞĐĞƐƐĂƌLJ͘ h' d s >KWD EdD/> ^dKE ^ xDĂLJϵĂŶĚDĂLJϭϬ͕ϮϬϭϴ WƵďůŝĐ ǁŽƌŬƐŚŽƉƐ ƚŽ ƉƌŽǀŝĚĞ ĂŶ ŽǀĞƌǀŝĞǁ ŽĨ ƚŚĞ ŝƚLJDĂŶĂŐĞƌ͛ƐWƌŽƉŽƐĞĚƵĚŐĞƚ xDĂLJϭϴ͕ϮϬϭϴ ƵĚŐĞƚŽĐƵŵĞŶƚƐƵďŵŝƚƚĞĚƚŽŝƚLJŽƵŶĐŝů ƐƌĞƋƵŝƌĞĚďLJŝƚLJŚĂƌƚĞƌ͕ƚŚĞŝƚLJDĂŶĂŐĞƌ͛Ɛ WƌŽƉŽƐĞĚƵĚŐĞƚǁĂƐƐƵďŵŝƚƚĞĚƚŽƚŚĞŝƚLJŽƵŶĐŝů ĂƚůĞĂƐƚƚŚŝƌƚLJͲĨŝǀĞĚĂLJƐƉƌŝŽƌƚŽƚŚĞďĞŐŝŶŶŝŶŐŽĨƚŚĞ ĨŝƐĐĂů LJĞĂƌ͘ ŽƉŝĞƐ ŽĨ ƚŚĞ WƌŽƉŽƐĞĚ ƵĚŐĞƚ ǁĞƌĞ ŵĂĚĞĂǀĂŝůĂďůĞĨŽƌƉƵďůŝĐƌĞǀŝĞǁŝŶƚŚĞKĨĨŝĐĞŽĨƚŚĞ ŝƚLJ ůĞƌŬ͕ ŝƚLJ ůŝďƌĂƌŝĞƐ͕ ĂƐ ǁĞůů ĂƐ ŽŶ ƚŚĞ ŝƚLJ͛Ɛ ǁĞďƐŝƚĞ͘ xDĂLJϮϮ͕ϮϬϭϴ WƌĞƐĞŶƚĂƚŝŽŶƚŽŝƚLJŽƵŶĐŝůŽĨƚŚĞ&ŝƐĐĂůzĞĂƌϮϬϭϵ ŝƚLJ DĂŶĂŐĞƌ͛Ɛ WƌŽƉŽƐĞĚ ƵĚŐĞƚ ĂŶĚ ŽƵŶĐŝů ĐŽŶƐŝĚĞƌĂƚŝŽŶĂŶĚĂĐĐĞƉƚĂŶĐĞŽĨƚŚĞƵĚŐĞƚĂƐƚŚĞ ŝƚLJŽƵŶĐŝů͛ƐWƌŽƉŽƐĞĚƵĚŐĞƚ͘ ŽŶĐƵƌƌĞŶƚůLJ͕ĂƉƵďůŝĐŚĞĂƌŝŶŐŽŶƚŚĞƵĚŐĞƚǁŝůůďĞ ƐĐŚĞĚƵůĞĚĨŽƌĂŽƵŶĐŝůŵĞĞƚŝŶŐŝŶ:ƵŶĞ͘>ĞĂĚŝŶŐƵƉ ƚŽƚŚŝƐŚĞĂƌŝŶŐ͕ƚŚĞŝƚLJŽƵŶĐŝů͛ƐWƌŽƉŽƐĞĚƵĚŐĞƚ ǁŝůůďĞŵĂĚĞĂǀĂŝůĂďůĞĨŽƌƉƵďůŝĐƌĞǀŝĞǁĨŽƌĂƚůĞĂƐƚ ϭϬĚĂLJƐ͘ x:ƵŶĞϱ͕ϮϬϭϴ WƵďůŝĐ ŚĞĂƌŝŶŐ ƚŽ ĂĚŽƉƚ ĂŶ ĂŵĞŶĚŵĞŶƚ ƚŽ ƚŚĞ dƌĂŶƐEĞƚ>ŽĐĂů^ƚƌĞĞƚ/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ x:ƵŶĞϭϮ͕ϮϬϭϴ ĨƚĞƌĂƚůĞĂƐƚŽŶĞƉƵďůŝĐŚĞĂƌŝŶŐ͕ƚŚĞŝƚLJŽƵŶĐŝů ǁŝůůĐŽŶƐŝĚĞƌƉƵďůŝĐƚĞƐƚŝŵŽŶLJ͕ŵĂŬĞĂŶLJƌĞƋƵŝƌĞĚ Žƌ ĂƉƉƌŽƉƌŝĂƚĞ ĐŚĂŶŐĞƐ͕ ĂŶĚ ĂĚŽƉƚ ƚŚĞ ƵĚŐĞƚ͘ ĚŽƉƚŝŽŶ ŽĨ ƚŚĞ ďƵĚŐĞƚ ƌĞƋƵŝƌĞƐ ƚŚĞ ĂĨĨŝƌŵĂƚŝǀĞ ǀŽƚĞƐŽĨĂƚůĞĂƐƚƚŚƌĞĞŵĞŵďĞƌƐŽĨƚŚĞŽƵŶĐŝů͘ 7 158 8 159 ʹͲͳͻ 9 160 10 161 FY2019 City of Chula Vista Proposed Budget This section of the budget document identifies and outlines economic indicators that impact revenue forecasts at the local level. Several sources are used to forecast City revenues using national, state, and local area economic trends. Sources include: the UCLA Anderson Forecast (National and State), U.S. Department of Commerce (National), California Employment Development Department (National, State, and Local), California Department of Finance (State and Local), Bureau of Economic Analysis, Zillow real estate group, and the University of San Diego Index of Leading Economic Indicators (San Diego region). NATIONAL UCLA Anderson Forecast opened its March 2018 report by declaring the United States has officially entered an economic “Regime Change”, maintaining consistency with their predictions from recent years. First quarter of 2018 marked this new economic chapter with stock prices taking an abrupt 10% dip and with a long-term interest rate increase1. UCLA Anderson Forecast affirms, “the economic environment shifts from one of sluggish growth and low inflation to one of accelerating growth and moderate inflation.” The 2007 housing crisis triggered accommodative monetary policy, where Federal fund rates continuously declined in an attempt to revive the country’s economy1. The December 2017 Anderson report notes a trend reversal to this policy, normalization, which they expect to continue into 20192. Monetary policy normalization aims to keep a growing economy under control by increasing federal fund rates to more standard levels; there are four federal fund rate hikes in 20181. Fiscal policy changes are expected to increase the trade deficit. UCLA Anderson Forecast lists the 10-year tax cut legislation, excessive spending, and resource tariff plans as reasons for this increasing trade imbalance1. The December 2017 report also touches on this, citing additional imbalance risks were the U.S. to leave NAFTA2. 1 UCLA Anderson Forecast, March 2018 “Regime Change” 2 UCLA Anderson Forecast, December 2017 UCLA Anderson Forecast claims it is possible this bustling economy will slow down during 2019. Labor growth cannot keep up with employment demand, thus the current 3% GDP growth rate trend will likely “slow to 2.6% in 2019 and a sluggish 1.6% in 2020”. This 2019 growth slowdown also extends to housing activity due to increasing interest rates and higher home prices, “the Forecast anticipates 1.3 million units in 2018 and 1.38 million and 1.36 million units in 2019 and 2020, respectively”1. CALIFORNIA Rapid, countrywide economic change has not impeded California from remaining the nation’s job growth leader. UCLA Anderson Forecast’s March 2018 report extends its analysis to the Golden State, noting fourth quarter 2017 experienced quick employment growth that peaked with record high employment in December 2017. The report continues, “California’s unemployment rate will have its normal differential to the U.S. rate at 4.3% by the end of the forecast period (2020)”1. Southern California is in prime position for administering incoming manufacturing and engineering demand after Congress’ 2018 budget resolution1. The resolution permits heavy spending on defense goods meaning California’s tech industries are set for increased production. However, according to the aforementioned UCLA Anderson Forecast, the demand will be strong enough where wages may need to increase to draw in labor from a broad national base. 11 162 FY2019 City of Chula Vista Proposed Budget The California Report UCLA Anderson Forecast March 2018 Source: http://blogs.anderson.ucla.edu/anderson/2018/03/ COUNTY The National Economy’s uninterrupted climb stretches back to September 2016. First quarter of 2018 winds down with this trend intact amidst back-to- back all-time highs for USD Index3. This economic index projects positive growth throughout 2018. It describes a strong local economy that may have to deal with long- term issues depending on how employment opportunities adapt to technological improvements. The University of San Diego’s Index of Leading Economic Indicators summarizes its February 2018 performance categories as follows3: x Residential units authorized by building permits continued to advance, although not at the same pace as the last two months. The USD Index uses a moving average to smooth month-to-month fluctuations and capture the trend in a component, so the big gains in December and January still contribute significantly to the up move in February. x Initial claims for unemployment insurance had its biggest gain in almost three years (since March 2015). x Help wanted advertising up for the fourth month in a row and up sharply for the third month in a row. The net result was that the seasonally adjusted unemployment rate for San Diego County was 3.5 percent in February, which was unchanged from January’s rate but down from the 4.4 percent rate in February 2017. 3 USD Burnham-Moores Index of Leading Economic Indicators, Leading Economic Indicators up in February x Local stock prices fell for the first time since late August 2016. February saw great stock market volatility, with the Dow Jones Industrial Average falling more than 1,000 points in a day twice during the month. This affected local stocks, even though most San Diego companies are smaller ones that trade in the over-the-counter market. x Consumer confidence in San Diego County continues to chug along, registering its 20th consecutive monthly increase. x The National Index of Leading Economic Indicators is up for the 17th time in 18 months. While the national labor market remains strong, GDP growth continues to lag behind historic standards. For 2017, real GDP increased by 2.3 percent, which is higher than the 1.6 percent growth of 2016 but well below the 3.5 percent average growth rate from the post-World War II period to the start of the Great Recession. San Diego Index of Leading Economic Indicators San Diego County, 2013 – 2018 Performance Measure Forecasted Percent Change in Growth 2018 2019 2020 Total Employment 2.2%1.7%0.9% Payrolls 2.2%1.7%0.9% Real Personal Income 3.1% 3.6%2.8% 12 163 FY2019 City of Chula Vista Proposed Budget CITY The City’s General Fund reflects positive growth in its major revenue sources4. The City’s property taxes continued to recover as they are projected to increase by $2.4 million or 7.9% over the previous fiscal year budget. It should be noted however that $0.7 million of this increase represents an estimated loan repayment from the redevelopment agency. The increase in property taxes however, is offset by a lower growth rate in the other local taxes revenue category. Other local taxes (excluding new Measure P sales tax) total $58.5 million in the fiscal year 2018 Adopted Budget, and include the following major City revenue sources: sales taxes, franchise fees, utility taxes, transient occupancy taxes and business licenses. In total, this accounts for 35.1% of General Fund revenues4. Based on the trends observed in fiscal year 2017, the projection for various revenue sources within this revenue category were reduced or remained flat in the fiscal year 2018 budget. As a result, the other local taxes revenue category reflects a modest 1.9% increase in the fiscal year 2018 Adopted Budget. Overall General Fund revenues are expected to increase. However, this may not be sufficient enough to close a $4.3 million budget gap that was identified in the initial stages of the budget development process4. This gap required various departmental budget reductions and identification of additional non-discretionary revenue sources in order to balance the fiscal year 2018 Adopted Budget. The City of Chula Vista marks progress with Measure P – a temporary, ten-year, half-cent sales tax to fund high priority infrastructure needs. Collection of the sales tax began on April 1, 2017. The sales tax is projected to raise $178 million over the duration of the measure. The fiscal year 2019 Proposed Budget includes an estimated $16.6 million in Measure P sales tax revenues. The City’s housing market recovery advanced as the City’s median home value surged by 10.4% from March 2017 to March 2018. The recovery should continue but it may be slowing as the median home price is 4 City of Chula Vista, Adopted Budget Fiscal Year 2017 - 2018 projected to rise by 5.7% in 2019 (based on Zillow estimate)5. The performance in the housing market is reflected in the assumptions used to formulate property tax revenues in the fiscal year 2018 Adopted Budget. Property Tax revenues for fiscal year 2017-18 are based on 3.0% increase in assessed valuations for existing property within the City and an additional 1.5% increase due to projected growth from new development. In general, a 2% growth rate in assessed valuation of taxable property is legally permitted under Proposition 13 law assuming that there is a commensurate increase in the State’s consumer price index (CPI) of 2% or greater. The City is projecting to receive the full 2% increase for fiscal year 2019 as the state CPI continues to increase. This valuation increase in the City’s assessment role provides an important yearly boost to property tax revenues as the increase is applied to the entire assessment roll. It is important to note that during the economic downturn the City did not benefit from the increase as the CPI had also failed to reach the 2% threshold due to the recession. In those years, where the City did not receive the 2% base increase in assessment roll valuation, the City relied on re- assessments of properties that were re-sold at increased price levels or re-assessments of properties that increased values under Proposition 8 law for property revenue growth. Under Proposition 8, property owners may apply for an assessment appeal and be granted a lower assessed valuation for property tax purposes when their property values decrease. The lower assessed valuations are granted under the stipulation that their property assessments will be re- assessed in the future when property values recover. The California Employment Development Department shows the City’s unemployment situation improved to 3.8% in February of 2018 down from 5.4% for the same month of the prior year6. Chula Vista city’s unemployment rate is now higher than the state (4.3%) and the national unemployment rate of 4.1%. 5 Zillow, Inc. ”Chula Vista CA Home Prices & Home Values 6 State of California Employment Development Department, Labor Force and Unemployment Rate for Cities and Census Designated Places 13 164 FY2019 City of Chula Vista Proposed Budget Additionally, Chula Vista’s population remains stable as it continues to maintain its place as the 14th largest incorporated city in the state according to the California Department of Finance. The table below provides a year over year summary of median home value changes that have taken place within the City’s zip codes5. The improvement in home values will also help to improve the City’s property tax base. Chula Vista Home Prices March 2017 Compared to March 2018 Zip Code Locale Zillow Index Price 1-Year Change 1-Year Forecast20172018 91910 North 471,000 518,900 10.1% 5.9% 91911 South 434,000 469,300 8.5% 5.3% 91913 Eastlake 521,000 562,000 8.3% 5.1% 91914 NE 653,000 702,000 7.5% 5.2% 91915 SE 523,000 557,800 7.1% 5.0% Source Zillow.com/home-values/ 14 165 ʹͲͳͻ 15 166 16 167 FY2019 City of Chula Vista Proposed Budget All Funds Summary The following section provides an overview of the combined all funds budget. Detailed descriptions, funding, and staffing levels are provided for each fund under the corresponding fund section in this document. This section is intended to provide a citywide overview of the proposed budget for fiscal year 2019. ALL FUNDS REVENUE SUMMARY The combined revenue budget for all City funds totals $337.0 million; $48.9 million represents inter-fund transfer. Projected revenues for all funds are anticipated to decrease by $26.8 million when compared to the fiscal year 2018 Adopted Budget revenue of $363.8 million. Other Revenue is the category with the largest revenue change when compared to the fiscal year 2018 Adopted Budget with a net decrease of $41.6 million. The changes in this category are due to the following: • The largest change in this category is reflected in the 2016 Measure P Sales Tax Fund, which reflects a $44.2 million decrease when compared to the prior year. This change includes the removal of the bond proceeds estimated for the Measure P debt financing which occurred in fiscal year 2018. The bond proceeds are recorded as one-time revenues in the year they are received with a corresponding decrease the following year. The amount of bond proceeds achieved through the financing was considerably higher ($70.8 million versus $44.2 million) than anticipated during the development of the fiscal year 2018 budget. As this document is comparing the fiscal year 2019 Proposed Budget to the 2018 Adopted budget, the amount of the change is only $44.2 million. An adjustment to the fiscal year 2018 Adopted Budget was completed in the First Quarter of fiscal year 2018 to address the additional bond proceeds received. The bond proceeds remain in the fund (fund balance) though not shown as revenue for the proposed budget for the upcoming year. Funding for the debt service for the bond will be addressed from the ½ cent sales tax approved by voters in November 2016. The next largest change is reflected in the Property Taxes category, which reflects a net increase of $23.5 million when compared to the prior fiscal year. The most significant of the changes (approximately $21.8 million) occurs in the General Fund. The change shown in the table reflects a change in the revenue categorization for motor vehicle license fees the City receives from the State. In fiscal year 2018, the Motor Vehicle License Fees (MVLF) was classified as Revenue from Other Agencies. However, for the fiscal year 2019 Proposed Budget, MVLF revenues are classified with property taxes to better represents similar revenues. Additional information on the MVLF is presented in the General Fund Revenue Summary. The Revenues from Other Agencies category reflects a net reduction of approximately $15.5 million primarily as a result of the re-classification of the $21.8 million in MVLF revenue. Partially offsetting the decrease to this category is an increase of approximately $5.3 million in grants and miscellaneous funds. The Transfers In revenue category reflects a net increase of $2.3 million when compared to the prior fiscal year. The net increase is reflective of multiple transfers in including: increase of approximately $1.2 million related to one-time receipt of a loan repayment from the Public Facilities Development Impact Fee Fund (PFDIF) to the General Fund; approximately $0.9 million in funding from a Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire & Emergency Response (SAFER) grant; and an increase of $1.7 million in estimated Measure P Sales Tax revenues. These increases were primarily offset by a transfer of $1.4 million for long-term debt payments. The Licenses and Permits category is estimated to increase by $1.7 million in fiscal year 2019 when compared to prior year. The General Fund is anticipating an increase of approximately $0.1 million as result of higher anticipated security alarm permit revenues. The remaining $1.6 million increase is in the Development Services Fund for a projected increase in building permit activity. The Schedule of Revenues report, included in the Summary Tables section, reflects the projected revenues for fiscal year 2019 at the fund and revenue type level. The following table reflects a summary of all City revenues by category. 17 168 FY2019 City of Chula Vista Proposed Budget Sources of Funds (All Funds Combined) Fiscal Year 2016 - 2019 Revenues In Thousands (000) Total Revenues Fiscal Year 2019 (All Funds Combined) FY 2016 FY 2017 FY 2018 FY 2019 Revenue Category Actual Actual Adopted Proposed Change Property Taxes 36,788$ 36,412$ 39,762$ 63,220$ 23,458$ Other Local Taxes 60,486 68,527 80,670 82,561 1,891 Licenses and Permits 3,439 3,914 3,676 5,396 1,720 Fines, Forfeitures, Penalties 1,943 1,806 1,718 1,884 166 Use of Money & Property 8,210 4,488 3,534 4,055 521 Revenue from Other Agencies 44,502 45,133 48,898 33,368 (15,530) Charges for Services 56,193 52,414 49,542 49,855 313 Development Impact Fees 11,900 8,922 8,137 8,137 - Other Revenue 73,022 87,566 81,220 39,582 (41,638) Transfers In 84,256 114,656 46,670 48,934 2,263 Total 380,740$ 423,838$ 363,827$ 336,992$ (26,835)$ Property Taxes, 19% Other Local Taxes, 24% Licenses and Permits, 2% Fines, Forfeitures, Penalties, 1% Use of Money & Property, 1% Revenue from Other Agencies, 10% Charges for Services, 15% Development Impact Fees, 2% Other Revenue, 12% Transfers In, 15% 18 169 FY2019 City of Chula Vista Proposed Budget ALL FUNDS EXPENDITURE SUMMARY The combined expenditure budget for all City funds for fiscal year 2019 totals $347.5 million, of which $48.9 million represents inter-fund transfers. The combined budget amount includes a General Fund operating budget of $174.7 million and a Capital Improvement Program (CIP) budget of $30.1 million. When compared to the prior year budget, the fiscal year 2019 Proposed Budget reflects a decrease of $25.4 million. The CIP Project Expenditure category reflects the largest change when compared to the fiscal year 2018 Adopted Budget. This category is projected to decrease by $43.8 million from the prior year. The decrease is mainly attributed to a reduction of budgeted capital improvement projects within the 2016 Measure P Sales Tax Fund. The fiscal year 2018 Adopted Budget includes the receipt of $44.2 million in Measure P bond proceeds as one-time revenues; and allocation of these proceeds for capital improvement projects. The fiscal year 2019 Proposed Budget reflects the exclusion of these one- time revenues and corresponding expenses. Other major changes projected within this category include the following funds: Other Transportation Funds (reduction of $5.8 million), Development Impact Fees (reduction of $2.8 million), Miscellaneous CIP Funds (increase of $2.1 million), Transportation Funds (increase of $6.0 million), and Grants & Miscellaneous Funds (increase of $2.1 million). The Other Expense category reflects the second largest change from fiscal year 2018. This category is projected to increase by $9.5 million over fiscal year 2018 Adopted Budget amounts. Debt service payments are included within this category and can vary based on any bond refunding/refinancing that are completed in the prior year. The primary driver for the change in this category is the debt service for the Measure P bonds. This represents approximately $8.6 million of the net increase of $9.5 million for this category. The Personnel Services expense category is set to grow by $6.0 million in the fiscal year 2019 Proposed Budget. This increase reflects the following changes: • The fiscal year 2019 budget reflects a net increase of 16.50 positions when compared to the fiscal year 2018 Adopted Budget. This includes 14.50 positions that were approved during fiscal year 2018 and 2.0 positions being added as part of the fiscal year 2019 Proposed Budget. These position changes are reflected in the General Fund, Development Services Fund, and Fleet Management funds. • Increased costs related to retirement and medical (flex) benefits. • Funding for the annualized costs of negotiated salary increases approved per the current Memoranda of Understanding (MOU) with the City’s employee groups to become effective in fiscal year 2019. The Internal Services category is a newly created expense category for the fiscal year 2019. The $3.4 million increase in this category corresponds to the reduction within the Supplies and Services category. The creation of this expense category will assist to better track certain expenses and is in line with best budgeting practices. The next largest change in expenditures is reflected in the Transfers Out expense category. This category is estimated to increase by $2.3 million when compared to prior fiscal year. The increase is the net impact of increases and decreases in multiple funds. The most significant changes are reflected in the following: • The General Fund has a net increase in Transfers Out expenditures of $1.3 million. The largest contributor to this increase is the transfer out of the voter approved ½ cent sales tax to the 2016 Measure P Sales Tax Fund. The fiscal year 2019 Proposed Budget includes an increase of $1.7 million related to the Measure P funds. • The Federal Grants fund reflects an increase of $0.9 million for the receipt of funding from the FEMA SAFER Grant. The total number of recommended permanent positions for fiscal year 2019 is 1010.25 for all funds. This is a net increase of 16.50 positions when compared to fiscal year 2018. The Authorized Positions by Department report is included in the Summary Tables section of this document; it provides the new staffing by classification and department. A summary of staffing changes is also included in the budget summary section of this document. The following table reflects the expenditures for all funds by expense category. 19 170 FY2019 City of Chula Vista Proposed Budget Uses of Funds (All Funds Combined) Fiscal Years 2016 - 2019 Expenditures In Thousands (000) Total Budget Fiscal Year 2019 (All Funds Combined) FY 2016 FY 2017 FY 2018 FY 2019 Expenditure Category Actual Actual Adopted Proposed Change Personnel Services 133,097$ 136,939$ 145,123$ 151,102$ 5,979$ Supplies and Services 50,458 55,217 60,067 58,255 (1,812) Other Expenses 77,359 72,518 29,729 39,264 9,535 Internal Services 0 0 0 3,370 3,370 Capital 2,089 2,691 8,884 7,829 (1,055) Transfers Out 84,256 114,628 46,670 48,934 2,263 CIP Project Expenditures 14,906 19,034 73,872 30,059 (43,813) Non-CIP Project Expenditures 2,987 2,129 69 697 628 Utilities 7,145 7,690 8,556 8,016 (540) Total 372,296$ 410,846$ 372,971$ 347,526$ (25,445)$ Personnel Services, 43% Supplies and Services, 17% Other Expenses, 11% Internal Services, 1% Capital, 2% Transfers Out, 14% CIP Project Expenditures, 9% Non-CIP Project Expenditures, 0%Utilities, 2% 20 171 FY2019 City of Chula Vista Proposed Budget GENERAL FUND RESERVES In November 2009, the City Council approved a resolution updating the City’s General Fund Reserve Policy. The updated reserve policy: • Provides guidelines for the use of reserves • Sets a new long-term goal for higher General Fund Reserve level, from 8% to 15% • Includes the establishment of two new reserve funds - Economic Contingency Reserve and Catastrophic Event Reserve Achieving these reserve levels is a long-term goal; once fully implemented, the new General Fund Reserve policy will require higher reserve levels. This will help mitigate the negative impact on revenues from economic fluctuations, position the City to withstand potential State revenue takeaways, provide debt service coverage, and provide a resource to fund unforeseen expenditure requirements. The Third Quarter Financial Report for fiscal year 2018 is projecting that the General Fund would end the fiscal year balanced or with a slight surplus. As reflected on the following table, General Fund reserve levels have not only stabilized but have increased slightly since fiscal year 2009. It is important that the City maintain reserves in order to address the following potential issues: • Dramatic economic fluctuations • Debt service coverage • Development impacts – there may be gaps in timing when services will need to be provided to new developments but the development area has not yet generated the revenues needed to fully offset the cost of those services • Unfunded liabilities – deferred building and equipment repairs, equipment replacement, deteriorating infrastructure, and pension obligations. The following chart depicts the General Fund operating reserves since fiscal year 2012 as a percentage of the Adopted Budget. As the reserve is intended to be a gauge of the General Fund, Measure P funding is not included in the calculation of the General Fund reserve as the General Fund only serves as a pass-through fund for these revenues. The fiscal year 2019 Proposed General Fund Budget is balanced and there is no budgeted impact to the General Fund reserves percentage General Fund Operating Reserves Fiscal Year 2012 to Fiscal Year 2019 Note: The preceding chart reflects only the General Fund Operating Reserves. It does not include the Economic Contingency Reserve, which has a balance of approximately $3.6 million. Combined with the operating reserve, these two reserve funds total approximately 13.4% of the fiscal year 2019 Proposed General Fund budget. 6.8% 8.5% 10.6% 11.7% 12.8%13.2%13.1%12.6% $- $5 $10 $15 $20 $25 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% FY12 FY13 FY14 FY15 FY16 FY17 FY18 Projected FY19 Estimated GF FUND BALANCEMillionsRESERVE PERCENTAGEReserve %Reserve Policy (Updated 2009)GF Fund Balance ($) 21 172 22 173 ʹͲͳͻ 23 174 24 175 FY2019 City of Chula Vista Proposed Budget Summary of Staffing Changes The fiscal year 2019 Proposed Budget includes 1010.25 positions for all funds. This is a net increase of 16.50 positions when compared to the fiscal year 2018 Adopted Budget that included 993.75 authorized positions. The summary of staffing changes is divided into two sections – the staffing changes that were approved by Council during fiscal year 2018 and changes made as part of the development of the fiscal year 2019 budget. POSITION CHANGES AUTHORIZED DURING FISCAL YEAR 2018 During fiscal year 2018, Council approved the addition of 14.50 FTEs citywide as well as several reclassifications to reflect changes in duties. Changes in the General Fund resulted in a net 10.50 FTEs increase and changes to other funds resulted in a net increase of 4.00 FTEs. These changes included the following: • Animal Care Facility – The department received approval to reduce 1.00 Animal Care Specialist and add 0.50 Animal Control Officer. • Development Services Fund – As a result of development needs, there was an addition of 1.00 Development Services Tech II, 1.00 Development Services Tech III and 1.00 Senior Planner. There was also a transfer of 1.00 Senior Landscape Inspector from Public Works Department. • Engineering and Capital Projects – The department reclassified positions to better reflect assignments and responsibilities. This included 1.00 Principal Civil Engineer to a Principal Traffic Engineer and 1.00 Senior Civil Engineer to a Stormwater Program Manager. • Finance – As a result of a classification study, an Accountant was reclassified to an Associate Accountant to better represent the assignment of responsibilities of the position. • Fire – There was an addition of 12.00 Firefighters that are partially funded for a period of three years by FEMA’s SAFER Grant. • Library – Mid-Year position changes included the addition of 0.50 Director of Community Services, which is a full time position split between the Library and Recreation Departments. There was also a reclassification of 1.00 Director of Library to a City Librarian. • Public Works – There was a transfer of 1.00 Senior Landscape Inspector to the Development Services Fund. The department also received approval for the reclassification of 1.00 Custodial Supervisor to Building Services Supervisor, 1.00 Maintenance Worker I to Maintenance Worker II, 1.00 Parks Operations Manager to Parks Manager, and 1.00 Signing and Striping Supervisor to Public Works Supervisor. • Recreation – Approved position changes included the reduction of 1.00 Director of Recreation and the addition of a 0.50 Director of Community Services, which is a full time position split between the Library and Recreation. Reclassifications included 1.00 Management Analyst to Administrative Technician, 1.00 Senior Recreation Manager to a Parks and Recreation Administrator. The following table summarizes the position changes Council authorized during fiscal year 2018. 25 176 FY2019 City of Chula Vista Proposed Budget Summary of Fiscal Year 2018 Staffing Changes Approved by City Council 26 177 FY2019 City of Chula Vista Proposed Budget FISCAL YEAR 2019 CHANGES The fiscal year 2019 budget reflects specific program expansions based on the resources available. In total, the changes result in a net increase of 2.00 FTEs when compared to the fiscal year 2018 amended budget. These include the following changes summarized by department: • Development Services – General Fund – The reclassification of 1.00 Administrative Technician to a Senior Management Analyst in order to fill the needs of the department. • Development Services Fund – Includes the addition of 1.00 Associate Plan Check Engineer to meet the demands of increased development activity. • Economic Development – As part of the Proposed Budget, 1.00 Cultural Arts Program Manager is being transferred to the Library. • Fleet Management Fund – The correction of 1.00 Fiscal Office Specialist to Public Works. • Library – Transfer of 1.00 Cultural Arts Program Manager from Economic Development. • Police – The fiscal year 2019 Proposed Budget includes the unfreezing of 5.00 Peace Officers for Community Patrol. • Public Works – In addition to the transfer of 38.00 FTEs from the Public Works, Parks divisions to Recreation, the fiscal year 2019 Proposed Budget includes an addition of 1.00 Public Works Superintendent and a transfer of 1.00 Fiscal Office Specialist from the Fleet Management Fund. Together, these changes result in a net decrease of 36.00 FTEs for the department. • Recreation – In an effort to enhance service delivery the Parks divisions are being transferred from the Public Works Department. This change transfers 22.00 Gardener II, 1.00 Park Ranger Supervisor, 1.00 Parks Manager, 4.00 Parks Supervisors, 9.00 Senior Gardeners, and 1.00 Senior Park Ranger. These changes result in a net increase of 38.00 FTEs to the department. The following table summarizes the changes reflected in the fiscal year 2019 budget. 27 178 FY2019 City of Chula Vista Proposed Budget Summary of Proposed Fiscal Year 2019 Staffing Changes 28 179 FY2019 City of Chula Vista Proposed Budget SUMMARY OF FROZEN POSITIONS Due to continued fiscal constraints, the majority of prior fiscal year frozen (not funded) positions remain frozen. As part of the fiscal year 2019 Proposed Budget, the following departments had changes to their frozen positions. • Police – The frozen (not funded) Peace Officer count for Community Patrol had decreased by 5.00 Peace Officers due to the identification of funding for these positions. These changes have reduced the number of frozen (not funded) by 3.00 positions from the previous fiscal year. As funding becomes available the status of these positions will be reevaluated; recommended funding changes will be brought to Council for consideration mid-year or through the budget development process. The fiscal year 2019 Proposed Budget reflects 13.00 frozen positions. The frozen positions are summarized by department on the following table. Summary of Fiscal Year 2019 Frozen Positions 29 180 FY2019 City of Chula Vista Proposed Budget SUMMARY OF STAFFING CHANGES BY DEPARTMENT AND BARGAINING UNIT The following tables summarize the staffing changes occurring between the fiscal year 2018 Adopted Budget and the fiscal year 2019 Proposed Budget, by bargaining unit and by department. Summary of Staffing Changes by Bargaining Unit 30 181 FY2019 City of Chula Vista Proposed Budget Summary of Staffing Changes by Department 31 182 32 183 ʹͲͳͻ 'ĞŶĞƌĂů&ƵŶĚ džƉĞŶĚŝƚƵƌĞ^ƵŵŵĂƌLJ 'ĞŶĞƌĂů&ƵŶĚZĞǀĞŶƵĞ^ƵŵŵĂƌLJ ĞƉĂƌƚŵĞŶƚ^ƵŵŵĂƌLJZĞƉŽƌƚƐ 33 184 34 185 ʹͲͳͻ 35 186 36 187 FY2019 City of Chula Vista Proposed Budget Chula Vista General Operating Budget in thousands (000) FY 2017 Actual Expenditures $146,421 FY 2018 Adopted Budget $166,587 FY 2019 Proposed Budget $174,677 % Change FY 2018 to FY 2019 4.9% General Fund Expenditure Summary The fiscal year 2019 Proposed Budget for General Fund expenditures total $174.7 million. This is an increase of $8.1 million or 4.9 percent when compared to the fiscal year 2018 Adopted Budget. Capital improvement fiscal year fiscal year projects will be funded by the Measure P commitment. The fiscal year 2019 Proposed General Fund Budget is balanced. The City defines a budget as balanced when the amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. The Proposed Budget includes funding for programs and services supported by the City Council in previous fiscal years such as the addition of public safety staff. The fiscal year 2019 Proposed Budget includes funding for twelve new firefighter positions added during the fiscal year 2018 Mid-Year actions, and funding for five previously frozen Peace Officer positions within the Police Department’s Community Patrol Division. The fiscal year 2019 Proposed Budget reflects positive growth in its revenue source, albeit a slower rate than previous years. Cognizant of the softening in the revenue growth, the fiscal year 2019 Proposed budget expenditures focus on maintaining current levels of service with limited significant additions. Increasing personnel expenses, primarily pension and healthcare costs, have limited the flexibility of the General Fund. While the City is attempting to increase and diversify its revenue sources though such efforts as pursuing additional housing and commercial developments, increased marketing of the City, and reducing expenses through energy efficient programs, fiscal year 2019 remains fiscally challenged. The City has identified several one-time resources to remain balanced with the proposed expenditure budget. Staff will develop and evaluate potential options to address the structural imbalance in the upcoming year. Measure P – a temporary, ten-year, half-cent sales tax funding is dedicated to funding high priority infrastructure, fleet replacement, technology and other capital equipment resources. The General Fund Expenditures section provides information related to the significant changes within the individual expenditure categories. The following table compares all the expenditure categories for the fiscal year 2019 Proposed Budget to the fiscal year 2018 Adopted Budget expenditure categories and provides the actual expenditures for fiscal year 2016 and fiscal year 2017 for historical data. General Fund Expenditure Summary In Thousands (000) FY 2016 FY 2017 FY 2018 FY 2019 Category Actual Actual Adopted Proposed Change Personnel Services 112,647$ 118,623$ 123,556$ 128,212$ 4,656$ Supplies and Services 16,322 14,114 14,214 13,674 (540) Other Expenses 703 559 642 696 54 Internal Service - - - 2,972 2,972 Capital 505 1,595 150 220 70 Transfers Out 6,775 5,999 22,943 24,119 1,177 Non-CIP Project Expenditures 359 19 19 - (19) Utilities 4,850 5,512 5,063 4,783 (280) Total Operating Budget 142,162$ 146,421$ 166,587$ 174,677$ 8,090$ CIP Project Expenditures 1,607 40 - - - Total General Fund Budget 143,769$ 146,461$ 166,587$ 174,677$ 8,090$ 37 188 FY2019 City of Chula Vista Proposed Budget SIGNIFICANT EXPENDITURE CHANGES Despite the fiscal challenges present in fiscal year 2019, the Proposed Budget does include several additions from the fiscal year 2018 Adopted Budget. These include, but are not limited to: Funding of 5 previously frozen Peace Officers positions Approximately $1.3 million in funding to initiate the Bayfront Development Project Re-structuring the Parks Division from Public Works to the Recreation Department to create a Community Services Department. $0.08 million for undertaking a Consumer Choice Aggregation feasibility study Increase of $1.8 million in transfers to the Measure P Fund. MAJOR EXPENDITURE CHANGES BY CATEGORY The Personnel Services category reflects an increase of $4.7 million; the largest change in expenditures from the fiscal year 2018 Adopted Budget. A breakdown of the personnel services category changes include: • A $3.0 million increase for retirement costs which reflects the increased contribution rates based on the June 30, 2016 valuation report from CalPERS. These costs are discussed in detail later in the expenditure section. • Net increase of $0.7 million increase in budgeted salaries - this increase reflects the annualized cost of, negotiated wage increases per current MOUs with the City’s employee groups to be effective within fiscal year 2019, step increases, the addition of 16.5 FTEs and targeted salary savings of $4.2 million. Salary savings is the amount of salary expense that a department saves when a position is vacant or filled at a lower salary level than the budgeted level. • An increase of $1.2 million related to increased costs for healthcare benefits. Healthcare costs are estimated to increase by 9.7 percent over fiscal year 2018 costs. These costs are discussed in detail later in the expenditure section. • The adopted budget reflects a $0.1 million increase in budgeted overtime when compared to prior year adopted budget. This increase is due to the annualized cost of approved wage increases, and estimated wage inflation. The Transfers Out category is anticipated to increase by $1.2 million over fiscal year 2018. This is a net increase resulting from an increase of $1.5 million in Measure P transfers to the Measure P Fund for infrastructure expenditures. The General Fund serves as a pass-through for the Measure P Sales Tax revenues, and this expenditure represents the transfer of funds to the Measure P Sales Tax Fund. These revenues will be used to fund specific infrastructure projects and equipment purchases throughout the City. The Supplies and Services expense category decreased by $0.5 million when compared to the fiscal year 2018 Adopted Budget. The $0.5 million reduction in expenses is the result of several offsetting actions. The largest actions include: The transfer of $3.0 million in Fleet Maintenance charges from the Supplies and Services category to the newly created Internal Services category. The Internal Services category is being created to better track specific expenses and better align with budgeting best practices. An increase of approximately $1.4 related to expenses in contractual services due to an increase of $1.3 million related to the Bayfront Development Project and $0.1 million allocated for a feasibility study on Consumer Choice Aggregation. An increase of $0.3 million in computer hardware expenses. An increase of $0.2 million related to increased cell phone services for the Police Department. The Internal Services category is a newly created expense category for the fiscal year 2019 Proposed Budget. The $3.0 million increase in this category corresponds to the transfer from the Supplies and Services category for fleet maintenance charges. The Utilities expense category has been decreased by $0.3 million as a result of projected utility savings from renewable energy projects funded through the Clean Renewable Energy Bonds (CREBS). Departmental Utility budgets have been adjusted to reflect projected expenditures for fiscal 38 189 FY2019 City of Chula Vista Proposed Budget year 2019 based on projected savings as a result of renewable energy projects. The chart below illustrates the projected fiscal year 2019 expenditures by category, followed by a chart showing the City’s historical General Fund expenditures from fiscal year 2015 to 2017 as well as the fiscal year 2018 Adopted Budget and the fiscal year 2019 projected expenditure amounts. General Fund Expenditures by Category Fiscal Year 2019 Note: Personnel Services accounts for 73.6% of General Fund expenditures in the fiscal year 2019 Proposed Budget. General Fund Expenditures History by Category Fiscal Years 2015 - 2019 Health Benefits, 7.7%Other Personnel Expense, 2.7% Supplies and Services, 7.8% Other Expenses, 0.4% Capital, 0.1% Transfer Out, 13.9% Non-CIP Project Expenditures, 0.0% Utilities, 2.7%Salaries, 41.5% Hourly Wages, 1.5% Overtime, 4.1% Retirement Benefits, 15.8% Internal Services, 1.7% $- $50 $100 $150 $200 FY15 Actual FY16 Actual FY17 Actual FY18 Adopted FY19 ProposedMillions Personnel Services Supplies and Services Other Expenses Internal Service Capital Transfers Out CIP Project Expenditures Non-CIP Project Expenditures Utilities 39 190 FY2019 City of Chula Vista Proposed Budget The following chart illustrates the fiscal year 2019 Proposed General Fund Expenditure budget by department. A note of significance is the public safety departments, Police and Fire, represent approximately 50 percent of the General Fund budget for fiscal year 2019. General Fund Expenditure by Department Fiscal Year 2019 Note: The chart above does not reflect net cost of each department, only their expenditure allocations. The following chart reflects the “Other” department costs included in the previous chart that includes the $50.1 million of the General Fund department budgeted expenditures. General Fund Expenditure by Department (Other Department Detail – totals $50.1 million) Fiscal Year 2019 Note: The chart above does not reflect net cost of each department, only their expenditure allocations. Fire, $30.8 , 18% Public Works, $12.0 , 7% Police, $56.5 , 32% Non-Departmental, $25.3 , 14% Other Departments, $50.1 , 29% Boards and Commissions, $0.0 , 0% City Clerk, $1.0 , 2%City Council, $1.6 , 3% Human Resources, $2.8 , 6% Development Services, $2.9 , 6% Economic Development, $2.1 , 4% Engineering & Capital Projects, $9.0 , 18% City Attorney, $3.0 , 6% Administration, $2.2 , 4% Animal Care Facility, $2.9 , 6% Information Technology, $3.7 , 7% Library, $4.1 , 8% Finance, $3.9 , 8% Recreation, $10.9 , 22% 40 191 FY2019 City of Chula Vista Proposed Budget STAFFING LEVELS As General Fund revenue levels have improved in recent years, the City has continued the trend of slowly recovering its staffing levels previously reduced as a result of the economic recession. As shown on table below, with the proposed General Fund staffing levels in fiscal year 2019, the City will have been able to achieve a 4.7 percent increase in staffing since fiscal year 2015. This increase equates to the addition of 38.0 FTEs being added to city services since fiscal year 2015, of which, 23 FTEs or 61 percent fall into the Public Safety staffing category. For fiscal year 2019, the reorganization of the Parks Division from the Public Works Department (Development and Maintenance staffing category) to the Recreation Department (Community Services) skews the changes for these two staffing categories. The result of the reorganization is a net increase to overall FTE count by 0.5 FTEs. For the Public Safety staffing category, the increase of 12 FTEs from the fiscal year 2018 Adopted Budget to the fiscal year 2019 Proposed Budget includes twelve firefighter positions added during the fiscal year 2018 Mid-Year actions and funding of five previously frozen Peace Officer positions for fiscal year 2019. The additions to the Public Safety category make up 72% of the change in staffing from fiscal year 2018. Staffing for the Legislative and Administrative service category has remained flat with no change over fiscal year 2018. Budget constraints necessitated the net elimination of 331.4 full time equivalent (FTE) positions from the City’s peak employment of 1,263.75 FTEs during fiscal year 2007. The last major staffing reduction occurred in 2011 and was carried forward into the fiscal year 2013 Budget. As shown in the following graph, the number of FTEs per thousand per capita has remained relatively unchanged since fiscal year 2015. Staffing Level Fiscal Years 2015 - 2019 City of Chula Vista Staffing (FTEs) Compared to FTEs per Thousand Residents General Fund Budget FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 % Chg. Legislative and Administrative 106.00 111.00 105.00 105.00 105.00 0.0% Development and Maintenance 204.25 205.75 218.25 218.75 180.25 -17.6% Public Safety 457.50 458.50 462.50 468.50 480.50 2.6% Community Services 38.50 39.50 39.50 39.50 78.50 98.7% Total GF City Staff 806.25 814.75 825.25 831.75 844.25 1.5% 3.1 3.1 3.1 3.1 3.2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 100 200 300 400 500 600 700 800 900 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FTE/1,000FTETotal FTE's FTE's/1000 41 192 FY2019 City of Chula Vista Proposed Budget SALARY ADJUSTMENTS During the economic recession the City’s bargaining groups worked with City management to reach new agreements that reduced personnel costs in an effort to balance the budget. The adjustments to employee compensation included wage concessions and pension reform. As the economy began to gain positive momentum, the City granted salary increases to its employee bargaining groups. However, ongoing increases in retirement and health premium costs (discussed in the following sections), have strained the City’s ability to provide wage increases to its employees. The fiscal year 2109 Proposed General Fund Budget includes $128.2 million or 73.4 percent of the proposed budget in personnel expenditures, including salaries and benefits. The fiscal year 2019 Proposed General Fund Budget includes funding for the annualized costs of negotiated salary increases approved per the current Memoranda of Understanding (MOU) with the City’s employee groups. The current MOUs between the City and the Association of Chula Vista Employees (ACE), Western Council of Engineers (WCE), and Unclassified Employees provide for a 2.0% salary increase in July 2018; 2.5% salary increase for the members of the Chula Vista Police Officers’ Association in July 2018; and 2.5% salary increase for members of the International Association of Fire Fighters (IAFF) in January 2019. At the time of the development of the fiscal year 2019 Proposed Budget, the City was in negotiations with the Chula Vista Mid-Managers/Professional Association (MM/PROF) as this MOU is set to expire on June 30, 2018. RISING RETIREMENT COSTS The increase in retirement costs driven by rising CalPERS contributions is a significant budgetary challenge facing the City. The payments estimated to be made to the retirement system equal approximately $27.6 million or 15.8 percent of the City’s fiscal year 2019 Proposed General Fund. This represents an increase of $3.0 million from the fiscal year 2018 Adopted Budget. Increases in CalPERS contributions can be attributed to several factors. In the early 2000’s the City approved enhanced formula benefits for all City employees. During the economic downturn, the City approved an early retirement incentive to encourage employees to retire thereby reducing the number of layoffs, but this came at the expense of increasing the City’s payment to CalPERS. The impact of retirement cost increases were partially offset through negotiations with City’s bargaining groups that resulted in the implementation of pension reform. Under the negotiated pension reform, employees agreed to pay their share of pension costs and thereby provided a one-time base level of employee retirement payments. However, this action did not reduce future cost increases. During this same time period, CalPERS experienced significant investment losses. Over the last several years, CalPERS has made a series of changes that have resulted in higher contribution rates. Prior to fiscal year 2006, the CalPERS investment pool assumed a rate of return of 8.25% and any market gains (or losses) less than that amount would significantly affect the City’s overall contribution rate. In fiscal year 2006, CalPERS adjusted their investment return assumption to 7.75%. In 2012, the CalPERS Board of Administration approved a recommendation to lower the rate of investment return assumption from 7.75% to 7.50%. On December 21, 2016, the CalPERS Board of Directors decided to lower the rate of return assumption from 7.5% to 7.0% over a three-year period beginning in fiscal year 2019. The assumed rated of return would change to 7.375 percent in fiscal year 2019, decreasing to 7.250 percent in fiscal year 2020, and settling at 7.00 percent in fiscal year 2021. CalPERS is implementing this change for the following reasons: • Strengthening long-term sustainability of the pension fund • Reducing negative cash flows; additional contributions will help to offset the cost to pay pensions • Reducing the long-term probability of funded ratios falling below undesirable levels • Improving the likelihood of CalPERS investments earning the assumed rate of return • Reducing the risk of contribution increases in the future from volatile investment markets • Allows for reduced portfolio risk consistent with the new risk mitigation policy In addition, as outlined in their June 15, 2015 valuation report to the City, beginning in fiscal year 2018, CalPERS will collect employer contributions toward the plan’s 42 193 FY2019 City of Chula Vista Proposed Budget unfunded liability as dollar amounts instead of the prior method of a contribution rate. This change will address potential funding issues that could arise from a declining payroll or reduction in the number of active members in the plan. Funding the unfunded liability as a percentage of payroll could lead to the underfunding of the plans. Although employers will be invoiced at the beginning of the fiscal year for their unfunded liability payment, the plan’s normal cost contribution will continue to be collected as a percentage of payroll. The CalPERS Board of Administration also adopted a Risk Mitigation Policy which is designed to reduce funding risk over time. The policy establishes a mechanism whereby CalPERS investment performance that significantly outperforms the discount rate triggers adjustments to the discount rate, expected investment return and strategic asset allocation targets. A minimum excess investment return of 4% above the existing discount rate is necessary to cause a risk mitigation event. The policy has no impact on the current year valuation results but may have an impact in future years. The budgetary impacts caused by the increased employer contribution rates for retirement costs due to lower CalPERS investment returns and corrective policy changes, have been significant and will continue to challenge the City in future years. To follow is a series of charts related to pension costs. The first chart depicts the actual market rates of return for the CalPERS investment portfolio relative to the assumed 7.5% rate of return. This chart will be restructured in future fiscal years to display actual rates of return for the CalPERS assumed rates as they are updated. The second chart reflects actual CalPERS costs in the General Fund for fiscal years 2015 to 2018 Adopted Budgets and the 2019 Proposed Budget cost. The final chart reflects historical CalPERS contributions illustrating the employer (City) contribution rates from fiscal years 2004 to 2018 and projected rates for fiscal years 2019 through 2023. CalPERS Historical Market Value Rates of Return Relative to Assumed Investment Return of 7.5% -30.0% -22.5% -15.0% -7.5% 0.0% 7.5% 15.0% 22.5% 30.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 43 194 FY2019 City of Chula Vista Proposed Budget Retirement Costs (General Fund) Fiscal Years 2015 - 2019 CalPERS Employer Contribution Rates Fiscal Years 2007 to 2025 Projected Notes: 1. Reflects Employer Contribution. The actual employer contribution is higher due to Employer Paid Member Contributions (EPMC) ranging from 1.3% to 4.2%, and for applicable years an additional 8% and 9% for the Employer Paid Member Contribution (Employee Contribution). 2. Projected rates (FY 2020 - 2025), based on CalPER’s Annual Valuation Report as of June 30, 2016. $19.3 $20.9 $23.8 $24.5 $27.6 $- $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 $22.5 $25.0 $27.5 FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Adopted FY 2019 ProposedMillions Fiscal Year 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Miscellaneous Public Safety 44 195 FY2019 City of Chula Vista Proposed Budget HEALTH CARE COSTS Flex/Health insurance expenses total approximately $13.6 million or 7.7 percent of the fiscal year 2019 Proposed Budget expenditures. This represents an increase of $1.2 million or 9.7 percent from the fiscal year 2018 Adopted Budget. The fiscal year 2018 Adopted Budget reflected a slight decrease from fiscal year 2017 actual expenses due to a residual effect of switching health insurance provider in 2017 (City switched from AETNA to United Healthcare UHC). However, for the fiscal year 2019 Proposed Budget, it is anticipated that there will be an increase in costs from both of the City’s selected healthcare providers (Kaiser and United Healthcare UHC). The fiscal year 2019 Proposed Budget estimates an increase of 9.7 percent in healthcare premiums in calendar year 2019. To follow are charts and tables reflecting the increased expenditures related to flex/health insurance. The first chart illustrates the actual Flex/Health insurance costs in the General Fund for fiscal year 2015 to 2017, the fiscal year 2018 Adopted Budget, and the fiscal year 2019 Proposed Budget. Actual Flex/Health insurance costs have increased since 2015 and represent an ongoing challenge that the City will continue to address in future budgets. The subsequent table displays Flex Allotments by bargaining group from Calendar Year 2014 to Calendar Year 2018. Flex Allotments are the amounts provided by the City for employees to use towards the purchase of their health benefits. This allotment is negotiated between the City and each bargaining group. As illustrated by the table, costs to the City in the area of flex/health insurance have increased significantly since Calendar Year 2013. Flex allotment costs for 2019 were not available at the time the proposed budget was developed. Flex/Health Insurance Costs (General Fund) Fiscal Years 2015 - 2019 $10.3 $10.2 $12.5 $12.4 $13.6 $- $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 FY 2015 Actual FY 2016 Actual FY 2017 Actual FY 2018 Adopted FY 2019 ProposedMillions Fiscal Year 45 196 FY2019 City of Chula Vista Proposed Budget Flex Allotment Increases by Bargaining Group Calendar Year 2015 to Calendar Year 2018 The public safety bargaining group is not included in the preceding table as their negotiated benefits differ from the other bargaining groups. The City pays the full premium for Kaiser HMO Health Plan and Cigna DHMO pre-paid dental plan for the employee and any eligible dependents of the public safety bargaining group members. Previously public safety employees who chose a non-Kaiser HMO coverage paid a flat annual amount regardless of the number of dependents covered. However, the new labor agreements reached with public safety employees stipulate that public safety employees who choose a non-Kaiser HMO coverage will be assuming a share of the cost difference between the Kaiser premium and the non-Kaiser HMO coverage. For example, effective January 1, 2018, for any Police Officer’s Association (POA) members enrolling in a non-Kaiser HMO, the City will pay 2/3 of the premium difference, less $50 per month. International Association of Firefighters (IAFF) members hired on or after April 25, 2017 enrolling in any non-Kaiser plan are responsible to pay any amount greater than the cost of the Kaiser Plan. Employees choosing the Cigna DPPO preferred provider plan are responsible for any additional costs over and above the Cigna DHMO pre-paid plan. Due to the annual increase of flex/health insurance costs the amount the City has paid in insurance premiums have risen. As illustrated in the table below, medical premiums the City pays on behalf of public safety employees have increased between 15 percent and 44 percent (depending on medical group elections) since Calendar Year 2015. The City has seen an increase of 7 percent to 8 percent in dental premiums over the same period of time. The following table presents the range of benefits the City provides in medical and dental insurance to public safety employees and their dependents. City Provided Public Safety Flex Benefit Ranges Calendar Year 2015 to Calendar Year 2018 Bargaining Group 2015 2016 2017 2018 2014-2018 % Change Confidential 13,524$ 13,682$ 13,760$ 14,614$ 6.2% Chula Vista Employees Association 13,024$ 13,182$ 13,260$ 14,114$ 6.4% Executive 16,300$ 16,458$ 16,536$ 17,390$ 5.2% Mid Managers and Professionals 13,900$ 14,058$ 14,136$ 14,990$ 6.0% Senior Managers 14,900$ 15,058$ 15,136$ 15,990$ 5.6% Western Council of Engineers 13,900$ 14,058$ 14,136$ 14,990$ 6.0% Mayor & Council 16,300$ 16,458$ 16,536$ 17,390$ 5.2% FLEX Allotment Increases by Bargaining Unit Benefit 2015 2016 2017 2018 2014-2018 % Change Medical $5,784 - $19,848 $5,568 - $20,628 $6,408 - $19,776 $6,624 - $28,526 10% - 55% Dental (1)$180 - $432 $180 - $433 $192 - $456 $194 - $468 15% - 18% Public Safety FLEX Benefit Ranges (1)Dental insurance for public safety employees is fully compensated for at the DHMO level. Employees may choose PPO and pay the variance between DHMO and PPO. 46 197 FY2019 City of Chula Vista Proposed Budget Insurance Premiums Kaiser and AETNA/UHC insurance premiums have increased an average of 4.3 percent and 5.9 percent per year respectively since the beginning of Calendar Year 2014. As noted in the table below, Kaiser premiums have increased a total of 21.5 percent during this time while AETNA/UHC premiums have increased 29.4 percent over the same period. Premiums decreased by 3.8 percent in 2017 as the City switched its insurance provider from AETNA to UHC. The annual budget for Flex/Health Insurance has increased from $10.3 million in fiscal year 2015 to $13.6 million in the fiscal year 2019 Proposed Budget. Recent discussions with health care professionals indicate these high trends in health care costs are likely to continue for the foreseeable future. For fiscal year 2019, the proposed budget reflects an anticipated premium increase of 9.7 percent based on the preliminary information provided by the health care providers. The following table reflects the changes in health care rate premiums the City has experienced from January 2014 to January 2018. The final rate premium that will be in effect for January 2019 will not be known until late summer or early fall. Premium Increases by Health Care Provider Calendar Year 2014 to Calendar Year 2018 Total increase reflects average changes in premium costs from 2014-2018 for Kaiser and AETNA/UHC AETNA/ UHC January 2014 10.2% 8.5% 9.3% January 2015 -3.4% 8.9% 2.7% January 2016 -3.8% 3.8% 0.0% January 2017 15.1% -3.8% 5.6% January 2018 3.4% 12.0% 7.7% Annual Average Premium Increase 4.3% 5.9% 5.1% Total Increase (Jan 2014 - Jan 2018)21.5% 29.4% 25.4% Date of Increase Kaiser Average 47 198 48 199 ʹͲͳͻ 49 200 50 201 FY2019 City of Chula Vista Proposed Budget Chula Vista General Operating Budget ȋͲͲͲȌ FY 2017 Actual Revenues $158,139 FY 2018 Adopted Budget $166,587 FY 2019 Proposed Budget $174,677 % Change FY 2018 to FY 2019 4.9% *Excludes CIP Revenues The fiscal year 2019 Proposed General Fund revenue budget is $174.7 million. This reflects an increase of $8.1 million or 4.9 percent when compared to the fiscal year 2018 Adopted Budget revenues. General Fund revenues provide funding for essential City services including police, fire, library services, and park and recreation programs. The General Fund Revenues section provides information related to the significant changes within the individual revenue categories and brief descriptions of issues impacting the City’s major revenue sources: Property Tax, Sales Tax, Measure P Sales Tax, Franchise Fees, Transient Occupancy Tax (TOT), Utility User Tax, and Property Tax collected in- lieu of Motor Vehicle License Fees. The major revenue sources, listed above, account for 74.6 percent of the City’s General Fund revenue for the fiscal year 2019 Proposed Budget and are anticipated to increase by $4.5 million over the fiscal year 2018 Adopted Budget. The following table compares all the revenue categories for the fiscal year 2019 Proposed Budget to the fiscal year 2018 Adopted Budget revenue categories and provides the actual revenues for fiscal year 2016 and fiscal year 2017 for historical information. General Fund Revenues In Thousands (000) Category FY 2016 Actual FY 2017 Actual FY 2018 Adopted FY 2019 Proposed Change Property Taxes 30,220$ 31,484$ 33,621$ 35,302$1,681$ Sales Tax 33,317 32,562 32,935 33,698 763 Sales Tax - Measure P - 3,907 16,320 18,085 1,765 Franchise Fees 11,710 11,516 11,969 11,692 (277) Utility Users Taxes 5,844 5,786 5,860 5,605 (255) Transient Occupancy Taxes 3,827 3,650 4,316 4,103 (213) Motor Vehicle License Fees 18,935 19,966 20,844 21,886 1,042 Development Revenue 1,210 1,449 1,205 1,250 45 Licenses and Permits 1,165 1,117 1,364 1,448 84 Fines, Forfeitures & Penalties 1,249 1,123 1,075 1,241 166 Use of Money and Property 2,880 2,536 2,421 2,953 532 Other Local Taxes 2,792 2,616 2,598 2,598 - Police Grants 851 894 758 837 80 Other Agency Revenue 2,765 2,121 2,026 2,249 224 Charges for Services 6,714 7,470 7,211 7,318 108 Interfund Reimbursements 10,411 15,810 9,823 9,649 (174) Other Revenues 1,925 2,194 1,034 1,066 32 Transf ers From Other Funds 9,838 11,937 11,207 13,695 2,488 Total Operating Budget 145,654$ 158,139$ 166,587$ 174,677$ 8,090$ Capital Projects 31 40 - - - TOTAL General Fund Revenues 145,685$ 158,179$ 166,587$ 174,677$ 8,090$ 51 202 FY2019 City of Chula Vista Proposed Budget SIGNIFICANT REVENUE CHANGES Significant changes impacting the fiscal year 2019 Proposed Budget revenues include: x Projected increase of approximately $1.7 million in property taxes x Increase of approximately $1.0 million in Motor Vehicle License Fees over the fiscal year 2018 Adopted Budget amounts x Receipt of $1.5 million as a one-time interfund loan repayment x Increase of $1.8 million in Measure P Sales Tax revenues over the fiscal year 2018 Adopted Budget projections x Collective reduction of approximately $0.7 million in projected Franchise Fees, Utility User Taxes, and TOT. MAJOR REVENUE CHANGES BY CATEGORY x Property Taxes – For fiscal year 2019, property taxes are anticipated to total $35.3 million, which accounts for 20 percent of the General Fund revenue budget. This category reflects an increase of $1.7 million or 5 percent over the prior year adopted budget. When compared to the most recent fiscal year 2018 quarterly projections, property taxes are trending higher than budgeted due to better than estimated assessed valuation for fiscal year 2018. The trend is anticipated to continue and a total 5.0 percent increase in assessed valuation is projected in fiscal year 2019. x Sales Tax – Sales tax revenue represents the second largest revenue source for the City, falling closely behind property taxes. The fiscal year 2019 Proposed Budget projects $33.7 million to be collected in sales tax revenue. This revenue source represents 19.3 percent of the fiscal year 2019 Proposed General Fund revenue budget. When compared to the prior fiscal year adopted budget, Sales Tax revenues for fiscal year 2019 are projected to increase slightly by $0.8 million or 2.3 percent. This is exclusive of the Measure P Sales Tax revenues. x Measure P Sales Tax – The City of Chula Vista voters approved the Measure P Sales Tax Measure in December 2016, receiving the sales tax funding for one quarter in fiscal year 2017. Fiscal year 2018 was the first full year the City received Measure P Sales Tax funds. The fiscal year 2019 Proposed Budget estimates the collection of $18.1 million in Measure P Sales Tax revenue, which is an increase of $1.8 million or 10.8 percent over the fiscal year 2018 Adopted Budget amount. The large increase is due to an uptick in sales tax receipts and additional information (longer history) to base future projections upon. The General Fund is a pass- through for these revenues; these funds will ultimately be recognized as a Transfer Out to the 2016 Measure P Sales Tax Fund resulting in no net fiscal impact to the General Fund. x Property tax collected In-lieu of Motor Vehicle License Fees (MVLF) – The fiscal year 2019 Proposed Budget for the MVLF is $21.9 million, reflecting an increase of approximately $1.0 million over the fiscal year 2018 Adopted Budget amount. Beginning in fiscal year 2006, due to a change in revenue allocation resulting from the Budget Act of 2006, MVLF revenues are projected to grow in proportion to the change in gross assessed property valuation. As such, this revenue category reflects a 5 percent increase from fiscal year 2018 amounts, similar to the property tax revenue category. x Transfers from Other Funds – This category reflects an increase of approximately $2.4 million when compared to the fiscal year 2018 Adopted Budget. This increase is primarily driven by the anticipated receipt of a one-time $1.5 million transfer to the General Fund from the Public Facilities Development Impact Fee (PFDIF) for a loan repayment; and collection of $0.9 million from the FEMA Staffing for Adequate Fire & Emergency Response (SAFER) grant for reimbursement to partially offset the costs for additional firefighter positions added in fiscal year 2018. These projected revenue increases for fiscal year 2019 over the 2018 Adopted Budget are partially offset by the projected decreases in the following revenue categories from the fiscal year 2018 Adopted Budget: x Franchise Fees – For the fiscal year 2019 Proposed Budget, revenue from Franchise Fees is anticipated to decrease by $0.3 million from the fiscal year 2018 Adopted Budget amount of $12.0 million to $11.7 million. Franchise fees are collected from 52 203 FY2019 City of Chula Vista Proposed Budget three primary sources: gas & electric, trash collection, and cable receipts. While the gas & electric and trash components are anticipated to remain stable for fiscal year 2019, cable receipts are anticipated to see a decline from fiscal year 2018. As such, the projection for Franchise Fees is being lowered slightly from the fiscal year 2018 Adopted Budget amounts. x Transient Occupancy Taxes (TOT) – Transient occupancy tax revenues are projected to decrease from $4.3 million in fiscal year 2018 to $4.1 million in fiscal year 2019, a reduction of $0.2 million or 5.0 percent from the fiscal year 2018 Adopted Budget. Based on current information, TOT revenues are projected to increase over prior year actual receipts but not reach the projected growth in revenues that was originally anticipated in fiscal year 2018. As such, the projected revenue for Fiscal Year 2019 is being decreased by approximately $0.2 million from the projected $4.3 million in fiscal year 2018 to $4.1 million for fiscal year 2019.This is a more conservative growth projection for this revenue category. x Utility Users Tax (UUT) – UUT revenues are estimated at $5.6 million for fiscal year 2019, $0.3 million lower than the $5.9 million estimated in the prior year adopted budget. The reduction of $0.3 million represents a 4.4 percent reduction from the fiscal year 2018 Adopted Budget. The most recent fiscal year 2018 quarterly projections estimate that the City will receive approximately $5.6 million in UUT in fiscal year 2018. The fiscal year 2019 Proposed Budget is projecting no growth from the $5.6 million estimated to be received in fiscal year 2018. The chart below illustrates the projected fiscal year 2019 revenues by category, followed by a chart showing the City’s historical revenue collection from fiscal year 2014 to 2017 as well as the fiscal year 2018 Adopted Budget and the fiscal year 2019 projected revenue amounts. General Fund Revenues by Category Fiscal Year 2019 *Misc Revenues includes the following revenue categories: Development Revenue, Other Agency Revenue, Other Local Taxes, Other Revenues, Use of Money & Property, Licenses and Permits, Police Grants, Fines, Forfeitures & Penalties, and CIP. . Property Taxes, 20.2% Measure P Sales Tax, 10.4% Motor Vehicle License Fees, 12.5% Transfers from Other Funds, 7.8% Interfund Reimbursements, 5.5% Franchise Fees, 6.7% Charges for Services, 4.2% Utility Users Tax, 3.2% Misc Revenues*, 7.8% Sales Tax, 19.3% Transient Occupancy Taxes, 2.3% 53 204 FY2019 City of Chula Vista Proposed Budget Historical and Estimated General Fund Revenue Sources Fiscal Years 2015 – 2019 MAJOR REVENUE SOURCES The following is a description of the City’s major revenue sources along with a brief discussion of the trends impacting these revenues for fiscal year 2019. Sales Tax With the approval of Measure P, the City receives 1.5% of sales tax revenue applied to all taxable retail sales occurring within the City limits. In addition, Measure P will produce additional sales taxes on vehicles purchased outside of City limits by Chula Vista residents. Chula Vista voters approved Measure P – a temporary, ten-year, half-cent sales tax to fund high priority infrastructure needs. Collection of the sales tax began on April 1, 2017. The sales tax was projected to raise $178 million over the ten year period. The General Fund will serve as a pass-through for these revenues; these funds will ultimately be recognized as a Transfer Out to the Measure P Sales Tax Fund. Any funding received over the initially projected $178 million will also be transferred to the Measure P Sales Tax Fund. Plans to address any additional received funding will be presented to the Measure P Oversight Committee for approval. There is no net fiscal impact to the General Fund as a result of these new sales tax revenues. Sales tax revenues are collected at the point of sale and remitted to the State Board of Equalization. It is collected at a rate of 8.25% for the City of Chula Vista. The sales tax revenues are then allocated based on the following rates: State General Fund (includes K- 12/Community Colleges) 3.9375% Local Jurisdiction (City or County of place sale/use) (City Share) 1.0000% City Transaction Tax (Measure P) 0.5000% Public Safety (Prop 172) 0.5000% County Realignment (Mental Health/Welfare/Public Safety) 1.5625% Countywide Transportation Fund 0.2500% San Diego County Regional Transportation Commission (TransNet) 0.5000% Total Sales Tax Rate – Chula Vista 1 8.2500% 1 Total sales tax rates will vary by City due to local sales tax initiatives. For example, National City’s sales tax rate is 8.75% due to voter approved increase of 1% funding public services. Sales tax revenue is highly sensitive to economic conditions, and reflects the factors that drive taxable sales, including the levels of unemployment, consumer confidence, per-capita income, and business investment. Sales tax revenue is the City’s largest discretionary revenue source, accounting for 29.6 percent of total revenue for the General Fund in the fiscal year 2019 Proposed Budget – this includes Measure P revenues. $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 FY15 Actual FY16 Actual FY17 Actual FY18 Adopted FY19 ProposedMillions Property Taxes Sales Tax Sales Tax - Measure P Franchise Fees Utility Users Taxes TOT Motor Vehicle Licenses Development Rev.Licenses & Permits Fines Forfeitures & Penalties Use of Money & Property Other Local Taxes Police Grants Other Agency Revenue Charges for Services Interfund Reimb.Other Revenues Transfers From Other Funds CIP Related 54 205 FY2019 City of Chula Vista Proposed Budget Consumer spending has slowly increased since the economic recession. The positive trend is expected to continue in fiscal year 2019 and Sale Tax revenue is estimated at $33.7 million (net of Measure P revenues) in the proposed budget. This is a change of approximately 2.3 percent or $0.8 million when compared to the fiscal year 2018 Adopted Budget. With the addition of Measure P revenues, Sales Tax revenues for fiscal year 2019 total $51.8 million. The following graphs illustrate the gradually increasing trend in Sales Tax revenues (exclusive of Measure P Sales Tax revenues) from fiscal year 2015 to the projected amounts for fiscal year 2019; and the amounts of Measure P funding collected in fiscal year 2017 to the projected amounts for fiscal year 2018 and 2019. City of Chula Vista Sales Tax Revenues Fiscal Years 2015 - 2019 City of Chula Vista Measure P Sales Tax Revenues Fiscal Years 2017 – 2019 A matter that is greatly influencing Sales Tax revenues is Online Retail sales versus traditional Brick & Mortar Store sales. With the rise in social networking and growth in the use of mobile devices, the general public has become more comfortable with online purchasing. E-Commerce has substantially altered the Sales Tax base, repositioning revenues from point of sale (dedicated City revenues) to County and State Pools, which is allocated amongst jurisdictions. The escalation of online retail shopping has been apparent since 2015; this shift has continued to occur since this time. Based on data collected by the City’s Sales Tax consultant (HdL) the table below illustrates the variance in the taxable sales per capita for the cities within San Diego County. Taxable Sales Per Capita Notes: 1. Based on 4 th Quarter 2017 Taxable Sales 2. Chula Vista Ranks 15 th out of 18 cities in San Diego County. 3. Prior budget documents reflected Sales Tax Per Capita information, which changes the scale of the presentation presented above but does not change the City’s standing when compared to other cities. $- $10 $20 $30 $40 Millions$0 $5 $10 $15 $20 FY17 FY18 - Adopted FY19 - ProjectedMillions $0 $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 Del MarCarlsbadPowayNational CityEl CajonEscondidoSolana BeachSanteeLa MesaEncinitasLemon GroveSan DiegoSan MarcosVistaChula VistaCoronadoOceansideImperial BeachAutos & Trans.Building & Constr.Business & Industry Food & Drugs Fuel & Svc Stations General Goods Restrnts & Hotels Other 55 206 FY2019 City of Chula Vista Proposed Budget Chula Vista also continues to be challenged in the generation of taxable sales per capita when compared to other County cities. As noted on the previous chart, taxable sales per capita for the City is only $2,966 while Del Mar has the highest taxable sales per capita at a rate of $9,734. This comparison indicates that the City’s residents spend a high percentage of their retail dollars elsewhere. The City of Chula Vista continues to pursue development opportunities that have the potential to positively impact revenue for the City. The City has adopted a program that would increase the viability of obtaining financing for commercial, industrial and high density residential development projects located in the Western area of the City. The City approved an agreement for the development of a new BMW dealership within the Chula Vista AutoPark. In Eastern Chula Vista the development of the Eastern Urban Center (Millenia) is moving forward and a developer purchased and is processing the construction documents through the City for the development of 350,000 square feet of new office space which would increase employment opportunities in the City. While all of these opportunities could provide more employees and residents to the City that would shop and dine in these areas, the projects are several years away from actually being built and occupied. In the short term, the City continues to focus on providing a single point of contact and process their applications on-time for new businesses looking to open in Chula Vista as well as assist existing businesses with whatever needs they might have to sustain and grow their establishments. Property Tax Property tax revenues represent a major funding source for the City of Chula Vista as well as other local jurisdictions. The distribution of property tax funding has changed over time as the State legislature and voter approved initiatives have altered property tax allocations among local jurisdictions. As a result, the City currently receives property tax in-lieu revenues and property tax in-lieu of vehicle license fee revenues. These revenues were meant to replace the state-wide reallocation of sales tax and vehicle license fee revenues but do not increase the City’s revenue base. Currently, the City of Chula Vista receives approximately 12.7% of each property tax dollar. The distribution of the property tax dollar among the other local jurisdictions is depicted below. Property Tax Dollar Distribution by Jurisdiction Fiscal Year 2019 1 Represents the exchange of Property Tax for Cities and County Sales and Use Tax as authorized under Assembly Bill 1766, chaptered August 2, 2003. 2 Represents the exchange of Property Tax for Cities and County Vehicle License Fees as authorized under Senate Bill 1096, chaptered August 5, 2004. 3 Revenue for Schools has been reduced by the ERAF deficit as authorized under Senate Bill 1096, chaptered August 5, 2004. 4 Effective February 1, 2012 Redevelopment Agencies were dissolved and related revenue is allocated as provided by Health & Safety Code, Division 24, Part 1.85. County in Lieu of Sales& Use Tax, 0.1% Schools, 45.1% Cities In Lieu of Sales & Use Tax, 0.8% County, 13.2% County in Lieu of Vehicle License Fee , 7.9% Cities, 12.7% Redevelopment Property Tax Trust Fund, 10.9% Cities in Lieu of Vehicle License Fee, 5.3% Special Districts, 3.3%Library, 0.7% 56 207 FY2019 City of Chula Vista Proposed Budget Property tax revenues fell throughout the economic recession with Chula Vista being one of the hardest hit areas. During the economic recession the City’s assessed valuation dropped significantly. This history is depicted in the graph below. Since fiscal year 2014, the City’s assessed value has increased and this positive trend is anticipated to continue into Fiscal Year 2018. This positive trend is reflected in the estimated property tax revenues. Historical Change in Assessed Value City of Chula Vista and Countywide Comparison Source: County of San Diego Assessors Office. Property tax revenues comprise the City’s second largest discretionary revenue source and accounts for 20.2 percent of the total revenue for the General Fund. This revenue source is estimated at $35.3 million in the fiscal year 2019 Proposed Budget and represents 5.0 percent or $1.7 million increase from the fiscal year 2018 Adopted Budget. The following table illustrates the City’s property tax from fiscal year 2015 to the projected amounts for fiscal year 2019. Property Tax Revenues Fiscal Year 2015 - 2019 *Fiscal Year 2013 Property Tax includes a one-time payment related to the elimination of the City's Redevelopment Agency. Property Tax revenues are based on a 1.0% levy on the assessed value of all real property. Under the terms of Proposition 13, which was approved in California in 1978, annual increases in the assessed value are capped at a maximum of 2% per year unless there is a change in ownership or new construction. Annual increases in assessed value are limited by either the California Consumer Price Index (CPI) or the 2% cap, whichever is less. The recent recession resulted in decreases in assessed valuations due to lower prices from home re-sales. Also, some years experienced little or negative inflation (deflation) that precluded the County Assessor from applying the normal increase of up to 2% to the assessment roll as permitted under the terms of Proposition 13. As recently as fiscal year 2013, assessed values decreased by 0.7 percent based on data from the County of San Diego Assessor’s Office. The reductions in assessed valuations and the less than full application of the 2% growth factor to the assessment roll resulted in several years of negative or no growth in property tax revenues for the City during the recession. The chart on the following page provides a historical comparison of the assessed valuation and the CPI from 1978 to 2017. The most recent change in the October to October CPI was 3.1 percent, which will allow for the full 2% growth rate to be applied to the assessment roll. The fiscal year 2019 Proposed Budget has been increased to reflect this projected rate, as well as another estimated 3.0 percent growth in reassessed properties, for a total increase of 5.0 percent in assessed valuation. -15% -10% -5% 0% 5% 10% 15% 20% 25% 1996199719981999200020012002200320042005200620072008200920102011201220132014201520162017 2018 Chula Vista County Overall 57 208 FY2019 City of Chula Vista Proposed Budget Historical Change in Assessed Value vs Changes in the California CPI Franchise Fees Franchise fee revenues are generated from public utility sources such as San Diego Gas & Electric (SDG&E) (2% on gas and 1.25% on electricity), trash collection franchises (20% fee), and cable franchises (5% fee) conducting business within City limits. SDG&E collects the franchise fee from Chula Vista customers which can vary due to usage trends. Trash franchise fees and cable fees are more predictable due to the fixed rates charged and the monthly and quarterly receipt of the revenues respectively. Revenue growth is projected based on population and inflation factors. The following chart illustrates the historic and projected revenue trends for the City’s Franchise Fee revenue. Overall, fiscal year 2019 Proposed Budget franchise fee revenues are projected to decrease by $0.3 million and represent 6.7 percent of the total fiscal year 2019 anticipated General Fund revenues. Franchise Fee Revenues by Utility Motor Vehicle License Fees With the State Budget Act of 2004, the allocation of MVLF revenues to cities and counties was substantially changed. Since 2006 the majority of MVLF revenues for each city grew essentially in proportion to the growth in the change in gross assessed valuation. Due to the new formula by the State, 96% of the City’s MVLF revenues fluctuated with changes in assessed values within the City. The other 4% of MVLF revenues received by the City were based on a per capita formula but has since been -5 0 5 10 15 20 77-7878-7979-8080-8181-8282-8383-8484-8585-8686-8787-8888-8989-9090-9191-9292-9393-9494-9595-9696-9797-9898-9999-0000-0101-0202-0303-0404-0505-0606-0707-0808-0909-1010-1111-1212-1313-1414-1515-1616-17Assessed Value California CPI Increase 2% $- $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 MillionsEnergy Trash/Cable 58 209 FY2019 City of Chula Vista Proposed Budget shifted per SB89. Provisions in SB89 shifted hundreds of millions of Vehicle License Fee revenues to fund the state law enforcement grants. Statewide, SB89 took $130 million of city general revenue and shifted it to save state law enforcement grant programs. This change applied to the 4% of MVLF revenues that were based on a per capita formula. MVLF Revenues Fiscal Year 2015 - 2019 The chart above represents actual MVLF revenues since fiscal year 2015, the fiscal year 2018 Adopted Budget, and the fiscal year 2019 estimates. In total the fiscal year 2019 Proposed Budget VLF revenues are projected to increase by $1.0 million or 5.0 percent when compared to the fiscal year 2018 Adopted Budget. Utility Users Tax The City adopted its Utility Users Tax (UUT) in 1970. The City of Chula Vista imposes a UUT on the use of telecom at a rate of 4.75% of gross receipts. For natural gas services UUT is applied at a rate of $0.00919 per therm and $0.00250 per kilowatt on electricity services, which equates to a tax of approximately 1% of utility charges. In review of current data, the UUT revenue projections are trending similar to prior year receipts and are not anticipated to achieve the growth anticipated for Fiscal Year 2018. As the UUT fees are trending lower than anticipated for fiscal year 2018, the revenue projections for Fiscal Year 2019 are being reduced by approximately $0.3 million from the fiscal year 2018 Adopted Budget, from $5.9 million to $5.6 million. Transient Occupancy Tax (TOT) The City of Chula Vista imposes a Transient Occupancy Tax (TOT) upon all hotel stays within the City boundaries. The TOT tax rate in the City is 10%. Major economic drivers for TOT revenue include room rates, average occupancy rates, and seasonal and non- seasonal tourism. The potential for significant revenue growth is feasible provided additional hotels are built capturing the market created by the growth in the eastern section of the City. Several potential new hotel developments are being adopted in the City, primarily in the Millenia project and the Bayfront. As illustrated in the following graph, during the economic recession, TOT revenue dropped due to the lack of discretionary spending by consumers. However, from fiscal year 2011 to fiscal year 2016, TOT revenues experienced positive grow. Fiscal year 2017 saw a slight decrease from prior years but a return to positive growth in anticipated for fiscal year 2018 and 2019. TOT Revenues Percent Change Year by Year $0 $5 $10 $15 $20 $25 FY15 FY16 FY17 FY18 - Adopted FY19 - ProjectedMillions -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 - Adopted FY 19 - Projected 59 210 FY2019 City of Chula Vista Proposed Budget Estimated TOT revenues for fiscal year 2018 are $4.3 million. This is a $0.66 million, or 18.1%, increase from the fiscal year 2017 Adopted Budget. The fiscal year 2018 Adopted Budget included a $0.6 million increase in TOT revenues due to the additional hotel in Eastern Chula Vista projected to open in fiscal year 2018. While the new hotel did open in fiscal year 2018, the increased revenue projections appear to be lofty as the new hotel actual drew business from other neighboring hotels, reducing the net impact of the new hotel. Fiscal year 2018 TOT revenues are projected to increase over fiscal year 2017 actuals but not to the extent originally projected. As a result, the fiscal year 2019 Proposed Budget TOT projections are returning to a conservative growth projection. Other Revenue Revenue projections are continually reviewed and updated by City staff. As described above, major general revenues, such as property taxes, sales taxes, franchise fees, utility users tax, transient occupancy tax and motor vehicle license fees, are projected by the Finance Department based on prior history, growth and inflation projections, and economic climate. Additional assistance in the projection of revenues is provided by subject-matter experts such as the City’s sales and property tax consultants, the County Assessor and by reviewing regional and local economic forecasts provided by the UCLA Anderson Forecast and the University of San Diego’s Index of Leading Economic Indicators for San Diego County, respectively. 60 211 ʹͲͳͻ 61 212 62 213 FY2019 City of Chula Vista Proposed Budget The General Fund budget funds the day-to-day operations of most City services. For FY 2019 the proposed General Fund operating budget totals $174.ϳ million. This funds the following departments: x Mayor and City Council x Boards and Commissions x City Clerk x City Attorney x Administration x Information and Technology Services x Human Resources x Finance x Non-Departmental x Animal Care Facility x Economic Development x Development Services x Engineering and Capital Projects x Police x Fire x Public Works x Recreation x Library To follow is a series of summary reports that reflect the anticipated revenues, expenditures, and staffing information for each of the General Fund departments. 63 214 64 215 FUND/DEPARTMENT EXPENDITURES REVENUES NET IMPACT 100 GENERAL FUND (01) City Council 1,626,561 - 1,626,561 (02) Boards & Commissions 27,783 - 27,783 (03) City Clerk 984,447 (9,000) 975,447 (04) City Attorney 3,042,225 (168,820) 2,873,405 (05) Administration 2,160,430 (38,000) 2,122,430 (06) Information Technology 3,717,967 (38,900) 3,679,067 (07) Human Resources 2,779,499 (286,389) 2,493,110 (08) Finance 3,869,938 (1,167,634) 2,702,304 (09) Non-Departmental 25,259,195 (140,492,127) (115,232,932) (10) Animal Care Facility 2,949,106 (1,254,070) 1,695,036 (11) Economic Development 2,127,278 (1,073,304) 1,053,974 (12) Development Services 2,900,096 (2,173,619) 726,477 (13) Engineering/Capital Projects 8,953,842 (6,737,563) 2,216,279 (14) Police 56,457,994 (7,098,444) 49,359,550 (15) Fire 30,827,479 (4,161,941) 26,665,538 (16) Public Works 11,984,859 (6,866,602) 5,118,257 (17) Recreation 10,915,734 (2,609,353) 8,306,381 (18) Library 4,092,746 (501,413) 3,591,333 100 GENERAL FUND TOTAL 174,677,179 (174,677,179) 0 65 216 66 217 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 652,099 766,349 897,472 884,966 Hourly Wages 208,971 102,144 - - Overtime 1,347 72 - - Health Benefits 143,205 176,688 217,308 225,284 Retirement Benefits 211,528 248,340 277,847 297,054 Other Personnel Expense 85,443 89,217 109,167 108,913 Personnel Expenses Subtotal 1,302,593 1,382,810 1,501,794 1,516,217 Non-Personnel Expenses Supplies & Services 50,619 48,726 105,847 105,847 Capital 2,302 - 3,190 3,190 Utilities 817 580 1,307 1,307 Non-Personnel Expenses Subtotal 53,738 49,306 110,344 110,344 TOTAL EXPENDITURES 1,356,331$ 1,432,116$ 1,612,138$ 1,626,561$ REVENUES Other Revenue (5,200) (1,500) - - TOTAL REVENUES (5,200)$ (1,500)$ -$ -$ NET PROGRAM EXPENDITURES 1,351,131$ 1,430,616$ 1,612,138$ 1,626,561$ REVENUE RECOVERY %0% 0% N/A N/A AUTHORIZED FULL TIME POSITIONS 14.00 14.00 14.00 14.00 ȋͲͳȌ 67 218 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Overtime 98 - 424 435 Other Personnel Expense 1 - 6 7 Personnel Expenses Subtotal 99 - 430 442 Non-Personnel Expenses Supplies & Services 50,639 32,602 11,841 27,341 Non-Personnel Expenses Subtotal 50,639 32,602 11,841 27,341 TOTAL EXPENDITURES 50,738$ 32,602$ 12,271$ 27,783$ NET PROGRAM EXPENDITURES 50,738$ 32,602$ 12,271$ 27,783$ REVENUE RECOVERY %0% 0% 0%0% AUTHORIZED FULL TIME POSITIONS 0.00 0.00 0.00 0.00 ȋͲʹȌƬ 68 219 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 489,038 486,916 393,122 369,698 Hourly Wages - - 19,380 19,380 Health Benefits 75,572 78,084 92,291 97,104 Retirement Benefits 136,723 147,023 163,498 168,417 Other Personnel Expense 39,667 41,788 53,361 52,810 Personnel Expenses Subtotal 741,000 753,811 721,652 707,409 Non-Personnel Expenses Supplies & Services 81,070 171,245 219,350 276,350 Utilities 653 444 688 688 Non-Personnel Expenses Subtotal 81,723 171,689 220,038 277,038 TOTAL EXPENDITURES 822,723$ 925,500$ 941,690$ 984,447$ REVENUES Revenue from Other Agencies (2,465) - - - Charges for Services (2,799) (4,140) (5,500) (5,000) Other Revenue (3,622) (2,312) - (4,000) TOTAL REVENUES (8,886)$ (6,452)$ (5,500)$ (9,000)$ NET PROGRAM EXPENDITURES 813,837$ 919,048$ 936,190$ 975,447$ REVENUE RECOVERY %1% 1% 1%1% AUTHORIZED FULL TIME POSITIONS 6.00 6.00 6.00 6.00 ȋͲ͵Ȍ 69 220 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,604,367 1,621,128 1,769,194 1,778,487 Hourly Wages ‐ ‐ 1,852 1,852 Overtime 100 58 ‐ ‐ Health Benefits 185,152 182,149 219,977 221,719 Retirement Benefits 456,565 500,829 557,487 607,693 Other Personnel Expense 87,968 94,725 121,745 122,370 Personnel Expenses Subtotal 2,334,152 2,398,889 2,670,255 2,732,121 Non‐Personnel Expenses Supplies & Services 562,187 423,130 303,300 303,300 Capital 2,639 ‐ 4,948 4,948 Utilities 1,656 1,484 1,856 1,856 Non‐Personnel Expenses Subtotal 566,482 424,614 310,104 310,104 TOTAL EXPENDITURES 2,900,634$ 2,823,503$ 2,980,359$ 3,042,225$ REVENUES Charges for Services (59,683) (72,894) (73,694) (73,694) Other Revenue (73,512) (44,995) (95,126) (95,126) TOTAL REVENUES (133,195)$ (117,889)$ (168,820)$ (168,820)$ NET PROGRAM EXPENDITURES 2,767,439$ 2,705,614$ 2,811,539$ 2,873,405$ REVENUE RECOVERY %5%4%6%6% AUTHORIZED FULL TIME POSITIONS 14.00 14.00 14.00 14.00 (04) CITY ATTORNEY SUMMARY OF DEPARTMENT RESOURCES 70 221 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,871,868 1,225,720 1,244,955 1,309,038 Hourly Wages 27,599 3,732 -- Overtime 2,148 2,608 -- Health Benefits 208,751 139,233 144,549 154,014 Retirement Benefits 605,526 349,622 393,829 432,780 Other Personnel Expense 131,506 159,624 170,604 171,538 Personnel Expenses Subtotal 2,847,398 1,880,539 1,953,937 2,067,370 Non-Personnel Expenses Supplies & Services 372,558 168,018 88,812 88,812 Capital 85 - 3,416 3,416 Utilities 1,668 660 832 832 Non-Personnel Expenses Subtotal 374,311 168,678 93,060 93,060 TOTAL EXPENDITURES 3,221,709$ 2,049,217$ 2,046,997$ 2,160,430$ REVENUES Charges for Services (10,379) (9,937) (5,000) (5,000) Other Revenue (192,957) (21,472) (33,000) (33,000) TOTAL REVENUES (203,336)$ (31,409)$ (38,000)$ (38,000)$ NET PROGRAM EXPENDITURES 3,018,373$ 2,017,808$ 2,008,997$ 2,122,430$ REVENUE RECOVERY %6% 2% 2%2% AUTHORIZED FULL TIME POSITIONS 17.00 10.00 10.00 10.00 Budget Restructuring: (1) The Economic Development Department was formerly a division within the Administration Department in FY 2016. ȋͲͷȌ 71 222 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,547,757 1,550,651 1,479,232 1,480,186 Hourly Wages 28,998 35,312 - - Overtime - 785 - - Health Benefits 209,655 216,507 226,021 228,849 Retirement Benefits 468,139 463,629 468,429 508,769 Other Personnel Expense 117,184 114,430 148,650 149,221 Personnel Expenses Subtotal 2,371,733 2,381,314 2,322,332 2,367,025 Non-Personnel Expenses Supplies & Services 1,203,454 1,256,109 1,358,580 1,251,145 Capital 52,540 20,284 87,890 87,890 Utilities 34,329 2,915 11,907 11,907 Non-Personnel Expenses Subtotal 1,290,323 1,279,308 1,458,377 1,350,942 TOTAL EXPENDITURES 3,662,056$ 3,660,622$ 3,780,709$ 3,717,967$ REVENUES Charges for Services (10,622) (21,973) (10,000) (10,000) Other Revenue (176) - (20,000) (20,000) Transfers In - - (8,900) (8,900) TOTAL REVENUES (10,798)$ (21,973)$ (38,900)$ (38,900)$ NET PROGRAM EXPENDITURES 3,651,258$ 3,638,649$ 3,741,809$ 3,679,067$ REVENUE RECOVERY %0% 1% 1%1% AUTHORIZED FULL TIME POSITIONS 17.00 17.00 17.00 17.00 ȋͲȌ 72 223 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,386,473 1,346,624 1,489,047 1,458,640 Hourly Wages 33,831 31,875 28,560 28,560 Overtime - - 212 217 Health Benefits 192,952 220,763 241,316 245,138 Retirement Benefits 384,258 415,501 470,275 500,484 Other Personnel Expense 86,099 97,608 124,204 124,061 Personnel Expenses Subtotal 2,083,613 2,112,371 2,353,614 2,357,100 Non-Personnel Expenses Supplies & Services 338,753 320,484 411,670 411,670 Other Expenses 65 - - - Capital 9,207 9,446 9,272 9,272 Utilities 2,020 1,731 1,457 1,457 Non-Personnel Expenses Subtotal 350,045 331,661 422,399 422,399 TOTAL EXPENDITURES 2,433,658$ 2,444,032$ 2,776,013$ 2,779,499$ REVENUES Charges for Services (31,999) (54,487) (261,389) (181,389) Other Revenue (126,679) (123,317) (70,000) (70,000) Transfers In (32,771) (50,652) (35,000) (35,000) TOTAL REVENUES (191,449)$ (228,456)$ (366,389)$ (286,389)$ NET PROGRAM EXPENDITURES 2,242,209$ 2,215,576$ 2,409,624$ 2,493,110$ REVENUE RECOVERY %8% 9% 13%10% AUTHORIZED FULL TIME POSITIONS 16.00 16.00 16.00 16.00 ȋͲȌ 73 224 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 2,033,412 2,021,367 2,176,554 2,140,034 Hourly Wages 46,576 26,559 64,380 64,380 Overtime 519 12,827 - - Health Benefits 304,983 339,257 396,860 420,778 Retirement Benefits 586,357 615,448 709,671 741,234 Other Personnel Expense 167,250 174,828 226,378 224,736 Personnel Expenses Subtotal 3,139,097 3,190,286 3,573,843 3,591,162 Non-Personnel Expenses Supplies & Services 241,080 246,472 201,736 261,065 Other Expenses 14 1,026 - - Capital 8,703 91 15,499 15,499 Utilities 2,086 1,652 2,212 2,212 Non-Personnel Expenses Subtotal 251,883 249,241 219,447 278,776 TOTAL EXPENDITURES 3,390,980$ 3,439,527$ 3,793,290$ 3,869,938$ REVENUES Other Local Taxes (46,569) (45,647) (55,000) (55,000) Licenses & Permits - - (14,000) (14,000) Fines and Penalties (38,319) (12,256) (30,000) (30,000) Use of Money & Property (5,440) (2,544) - - Charges for Services (40,470) (67,448) (36,500) (36,500) Other Revenue (399,991) (710,536) (683,634) (683,634) Transfers In (348,618) (406,796) (348,500) (348,500) TOTAL REVENUES (879,407)$ (1,245,227)$ (1,167,634)$ (1,167,634)$ NET PROGRAM EXPENDITURES 2,511,573$ 2,194,300$ 2,625,656$ 2,702,304$ REVENUE RECOVERY %26% 36% 31%30% AUTHORIZED FULL TIME POSITIONS 27.00 28.00 28.00 28.00 ȋͲͺȌ 74 225 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries - 422 - (2,645,832) Overtime - 96,388 - - Health Benefits 4,396 1,342 - 41,010 Retirement Benefits 93,208 85,781 100,000 100,000 Other Personnel Expense 162,660 184,322 209,800 234,800 Personnel Expenses Subtotal 260,264 368,255 309,800 (2,270,022) Non-Personnel Expenses Supplies & Services 2,576,372 3,402,184 1,839,061 3,503,533 Other Expenses 165,877 147,736 167,500 352,176 Capital 2,500 1,285,053 - - Utilities 35,354 1,038 8,255 7,645 Transfers Out 6,319,951 11,225,039 22,490,479 23,665,863 CIP Project Expenditures 1,607,197 533,503 - - Non-CIP Project Expenditures 260,278 376,604 - - Non-Personnel Expenses Subtotal 10,967,529 16,971,157 24,505,295 27,529,217 TOTAL EXPENDITURES 11,227,793$ 17,339,412$ 24,815,095$ 25,259,195$ REVENUES Property Taxes (31,473,659) (32,541,180) (34,794,482) (58,252,471) Other Local Taxes (57,053,751) (59,822,483) (73,602,350) (75,493,298) Licenses & Permits (980) (12,812) - - Use of Money & Property (1,741,767) (1,329,630) (1,284,137) (1,825,188) Revenue from Other Agencies (19,727,080) (20,188,270) (21,072,285) (337,545) Charges for Services (26,374) (1,184) - - Other Revenue (1,862,845) (7,829,875) (1,088,221) (1,088,221) Transfers In (1,904,240) (1,941,551) (2,302,297) (3,495,405) TOTAL REVENUES (113,790,696)$ (123,666,985)$ (134,143,772)$ (140,492,127)$ NET PROGRAM EXPENDITURES (102,562,903)$ (106,327,573)$ (109,328,677)$ (115,232,932)$ REVENUE RECOVERY %N/A N/A N/A N/A AUTHORIZED FULL TIME POSITIONS 0.00 0.00 0.00 0.00 ȋͲͻȌǦ 75 226 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,164,467 1,213,722 1,349,178 1,327,929 Hourly Wages 194,339 217,944 176,369 176,369 Overtime 66,602 71,216 50,317 51,575 Health Benefits 246,527 276,939 306,535 318,817 Retirement Benefits 344,783 384,610 430,583 463,466 Other Personnel Expense 119,090 123,983 159,451 155,721 Personnel Expenses Subtotal 2,135,808 2,288,414 2,472,433 2,493,877 Non-Personnel Expenses Supplies & Services 580,783 546,579 477,665 351,949 Other Expenses 4,028 4,620 4,500 4,500 Capital 143,531 2,323 6,282 6,282 Utilities 50,051 55,288 45,347 39,297 Internal Service Charges - - - 53,200 Non-Personnel Expenses Subtotal 778,393 608,810 533,794 455,228 TOTAL EXPENDITURES 2,914,201$ 2,897,224$ 3,006,227$ 2,949,106$ REVENUES Licenses & Permits (123,357) (112,308) (175,300) (175,300) Fines and Penalties (25,370) (41,683) (20,000) (20,000) Use of Money & Property (97) (183) - - Charges for Services (256,493) (226,350) (279,800) (279,800) Other Revenue (1,052,145) (1,121,766) (971,070) (778,970) TOTAL REVENUES (1,457,462)$ (1,502,290)$ (1,446,170)$ (1,254,070)$ NET PROGRAM EXPENDITURES 1,456,739$ 1,394,934$ 1,560,057$ 1,695,036$ REVENUE RECOVERY %50% 52% 48%43% AUTHORIZED FULL TIME POSITIONS 21.00 21.75 21.75 21.25 ȋͳͲȌ 76 227 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries - 1,097,406 1,277,172 1,203,003 Hourly Wages - 23,887 6,151 6,151 Overtime - 687 - - Health Benefits - 172,362 219,583 218,767 Retirement Benefits - 323,097 402,513 414,719 Other Personnel Expense - 90,591 119,017 112,199 Personnel Expenses Subtotal - 1,708,030 2,024,436 1,954,839 Non-Personnel Expenses Supplies & Services - 192,992 168,422 168,422 Capital - - 1,520 1,520 Utilities - 3,487 2,497 2,497 Non-Personnel Expenses Subtotal - 196,479 172,439 172,439 TOTAL EXPENDITURES -$ 1,904,509$ 2,196,875$ 2,127,278$ REVENUES Use of Money & Property - (195) - - Other Revenue - (982,051) (1,062,970) (1,062,970) Transfers In - - (10,334) (10,334) TOTAL REVENUES -$ (982,246)$ (1,073,304)$ (1,073,304)$ NET PROGRAM EXPENDITURES -$ 922,263$ 1,123,571$ 1,053,974$ REVENUE RECOVERY %N/A 52% 49%50% AUTHORIZED FULL TIME POSITIONS 0.00 14.00 15.00 14.00 Budget Restructuring: ȋͳͳȌ (2) The Cultural Arts Program was moved from the Economic Development Department to the Library Department in FY 2019. (1) The Economic Development Department was formerly a division within the Administration Department in FY 2016. 77 228 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,384,903 1,364,650 1,550,732 1,667,408 Hourly Wages 28,198 32,634 28,517 28,517 Overtime 79 250 1,592 1,632 Health Benefits 215,204 244,380 286,718 305,943 Retirement Benefits 421,108 444,646 512,169 568,995 Other Personnel Expense 102,091 101,232 139,696 140,213 Personnel Expenses Subtotal 2,151,583 2,187,792 2,519,424 2,712,708 Non-Personnel Expenses Supplies & Services 110,936 121,181 173,766 148,878 Other Expenses 10,950 15 12,000 12,000 Capital 40 - 500 500 Utilities 2,629 1,765 2,375 2,375 Internal Service Charges - - - 23,635 Non-Personnel Expenses Subtotal 124,555 122,961 188,641 187,388 TOTAL EXPENDITURES 2,276,138$ 2,310,753$ 2,708,065$ 2,900,096$ REVENUES Licenses & Permits (390,691) (400,457) (395,000) (395,000) Fines and Penalties (427,521) (206,202) (319,000) (319,000) Charges for Services (111,067) (168,406) (195,170) (195,170) Other Revenue (301,608) (106,273) (168,977) (168,977) Transfers In (336,568) (968,472) (968,472) (1,095,472) TOTAL REVENUES (1,567,455)$ (1,849,810)$ (2,046,619)$ (2,173,619)$ NET PROGRAM EXPENDITURES 708,683$ 460,943$ 661,446$ 726,477$ REVENUE RECOVERY %69% 80% 76%75% AUTHORIZED FULL TIME POSITIONS 20.25 20.00 20.00 20.00 ȋͳʹȌ 78 229 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries - - 4,289,433 4,356,140 Hourly Wages - - 38,307 38,307 Overtime - - 120,394 123,403 Health Benefits - - 673,373 714,570 Retirement Benefits - - 1,375,276 1,494,830 Other Personnel Expense - - 355,429 363,482 Personnel Expenses Subtotal - - 6,852,212 7,090,732 Non-Personnel Expenses Supplies & Services - - 459,750 341,834 Other Expenses - - 108,500 108,500 Capital - - 10,000 10,000 Utilities - - 867,081 867,081 Internal Service Charges - - - 144,695 Transfers Out - - 389,700 391,000 Non-Personnel Expenses Subtotal - - 1,835,031 1,863,110 TOTAL EXPENDITURES -$ -$ 8,687,243$ 8,953,842$ REVENUES Licenses & Permits - - (105,966) (105,966) Charges for Services - - (800,885) (845,885) Other Revenue - - (4,575,984) (4,700,984) Transfers In - - (1,084,728) (1,084,728) TOTAL REVENUES -$ -$ (6,567,563)$ (6,737,563)$ NET PROGRAM EXPENDITURES -$ -$ 2,119,680$ 2,216,279$ REVENUE RECOVERY %N/A N/A 76%75% AUTHORIZED FULL TIME POSITIONS 0.00 0.00 46.00 46.00 Budget Restructuring: (1) Engineering/Capital Projects Department was a division within the Public Works Department in FY 2016 and FY 2017 . ȋͳ͵Ȍ Ȁ 79 230 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 25,797,327 27,223,117 28,964,342 29,899,305 Hourly Wages 448,068 344,872 218,110 218,110 Overtime 3,884,938 3,371,886 2,885,869 2,958,013 Health Benefits 3,985,148 4,305,639 4,807,105 5,128,384 Retirement Benefits 8,589,182 9,044,993 10,450,077 11,705,605 Other Personnel Expense 2,121,184 2,130,849 2,663,070 2,647,253 Personnel Expenses Subtotal 44,825,847 46,421,356 49,988,573 52,556,670 Non-Personnel Expenses Supplies & Services 3,605,073 3,208,017 2,767,798 2,389,185 Other Expenses 231,382 114,864 123,243 123,243 Capital 21,599 - - - Utilities 488,911 498,220 451,602 388,473 Internal Service Charges - - - 1,000,423 Transfers Out 4,777 - - - Non-Personnel Expenses Subtotal 4,351,742 3,821,101 3,342,643 3,901,324 TOTAL EXPENDITURES 49,177,589$ 50,242,457$ 53,331,216$ 56,457,994$ REVENUES Licenses & Permits (195,857) (219,532) (396,847) (230,847) Fines and Penalties (641,856) (761,925) (588,423) (754,423) Use of Money & Property (14,082) (15,804) (8,000) (8,000) Revenue from Other Agencies (1,268,344) (1,221,322) (1,049,701) (1,244,786) Charges for Services (3,984,468) (4,216,983) (4,197,057) (4,313,583) Other Revenue (82,541) (127,403) (83,580) (142,360) Transfers In (404,445) (404,445) (404,445) (404,445) TOTAL REVENUES (6,591,593)$ (6,967,414)$ (6,728,053)$ (7,098,444)$ NET PROGRAM EXPENDITURES 42,585,996$ 43,275,043$ 46,603,163$ 49,359,550$ REVENUE RECOVERY %13% 14% 13%13% AUTHORIZED FULL TIME POSITIONS 322.50 326.50 332.50 332.50 ȋͳͶȌ 80 231 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 12,203,275 12,666,716 13,118,702 14,622,762 Hourly Wages 62,654 47,422 4,940 4,940 Overtime 4,834,095 5,175,043 3,821,323 3,889,651 Health Benefits 2,017,304 2,167,726 2,346,228 2,825,700 Retirement Benefits 4,300,900 4,556,420 4,836,157 5,877,811 Other Personnel Expense 907,117 902,819 1,111,550 1,091,608 Personnel Expenses Subtotal 24,325,345 25,516,146 25,238,900 28,312,472 Non-Personnel Expenses Supplies & Services 2,049,885 2,497,935 2,271,285 1,316,274 Capital 155,311 48,603 - - Utilities 203,352 200,540 201,327 180,529 Internal Service Charges - - - 955,878 Transfers Out 61,620 62,326 62,326 62,326 Non-Personnel Expenses Subtotal 2,470,168 2,809,404 2,534,938 2,515,007 TOTAL EXPENDITURES 26,795,513$ 28,325,550$ 27,773,838$ 30,827,479$ REVENUES Licenses & Permits (432,705) (448,689) (437,519) (687,519) Use of Money & Property (15,600) (15,600) (15,600) (15,600) Revenue from Other Agencies (669,000) (669,407) (664,000) (664,000) Charges for Services (586,479) (1,015,743) (584,782) (706,257) Other Revenue (1,370,672) (1,406,640) (198,085) (198,085) Transfers In (828,194) (968,882) (972,453) (1,890,480) TOTAL REVENUES (3,902,650)$ (4,524,961)$ (2,872,439)$ (4,161,941)$ NET PROGRAM EXPENDITURES 22,892,863$ 23,800,589$ 24,901,399$ 26,665,538$ REVENUE RECOVERY %15% 16% 10%14% AUTHORIZED FULL TIME POSITIONS 136.00 136.00 136.00 148.00 ȋͳͷȌ 81 232 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 10,876,510 11,045,776 7,142,502 5,514,766 Hourly Wages 396,195 423,509 330,829 84,363 Overtime 346,802 338,207 110,715 105,949 Health Benefits 1,935,753 2,089,632 1,628,106 1,186,614 Retirement Benefits 3,539,663 3,314,206 2,364,133 1,821,955 Other Personnel Expense 889,216 945,268 868,361 617,478 Personnel Expenses Subtotal 17,984,139 18,156,598 12,444,646 9,331,125 Non-Personnel Expenses Supplies & Services 3,666,610 4,000,195 2,568,865 1,543,196 Other Expenses 157,656 99,297 19,500 15,000 Capital 103,741 97,008 5,171 75,171 Utilities 3,389,240 3,901,140 2,838,832 555,619 Internal Service Charges - - - 464,748 Transfers Out 389,003 388,668 - - Non-CIP Project Expenditures 98,860 - 18,700 - Non-Personnel Expenses Subtotal 7,805,110 8,486,308 5,451,068 2,653,734 TOTAL EXPENDITURES 25,789,249$ 26,642,906$ 17,895,714$ 11,984,859$ REVENUES Licenses & Permits (157,653) (73,087) - - Fines and Penalties (100) (100) - - Use of Money & Property (282,242) (321,470) (247,700) (27,700) Revenue from Other Agencies (11,597) (1,000) - - Charges for Services (960,064) (1,136,245) (17,655) 32,345 Other Revenue (6,735,248) (6,120,202) (1,695,601) (1,549,930) Transfers In (5,983,121) (5,840,917) (5,071,374) (5,321,317) TOTAL REVENUES (14,130,025)$ (13,493,021)$ (7,032,330)$ (6,866,602)$ NET PROGRAM EXPENDITURES 11,659,224$ 13,149,885$ 10,863,384$ 5,118,257$ REVENUE RECOVERY %55% 51% 39%57% AUTHORIZED FULL TIME POSITIONS 164.50 162.50 116.00 79.00 Budget Restructuring: (1) The Engineering/Capital Projects Department was formerly a division within the Public Works Department in FY 2016 and FY 2017. (2) The Parks Division was moved from the Public Works Department to the Recreation Department in FY 2019. ȋͳȌ 82 233 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,228,930 1,257,785 1,356,258 3,280,970 Hourly Wages 1,000,731 1,075,461 1,084,843 1,331,839 Overtime 3,308 2,350 5,302 12,968 Health Benefits 213,643 225,225 244,406 832,779 Retirement Benefits 424,770 435,938 464,036 1,221,754 Other Personnel Expense 110,192 119,659 143,702 380,723 Personnel Expenses Subtotal 2,981,574 3,116,418 3,298,547 7,061,033 Non-Personnel Expenses Supplies & Services 587,100 598,538 583,845 983,466 Other Expenses 131,767 171,180 206,796 80,500 Capital 2,438 23,140 2,523 2,523 Utilities 357,358 357,471 328,024 2,461,897 Internal Service Charges - - - 326,315 Non-Personnel Expenses Subtotal 1,078,663 1,150,329 1,121,188 3,854,701 TOTAL EXPENDITURES 4,060,237$ 4,266,747$ 4,419,735$ 10,915,734$ REVENUES Use of Money & Property (777,749) (812,115) (808,128) (1,019,128) Revenue from Other Agencies (7,558) (7,351) (7,233) (7,233) Charges for Services (1,353,023) (1,239,120) (1,472,810) (1,472,810) Other Revenue (106,973) (112,621) (102,182) (110,182) TOTAL REVENUES (2,245,303)$ (2,171,207)$ (2,390,353)$ (2,609,353)$ NET PROGRAM EXPENDITURES 1,814,934$ 2,095,540$ 2,029,382$ 8,306,381$ REVENUE RECOVERY %55% 51% 54%24% AUTHORIZED FULL TIME POSITIONS 17.00 17.00 17.00 54.50 Budget Restructuring: (1) The Parks Division was moved from the Public Works Department to the Recreation Department in FY 2019. ȋͳȌ 83 234 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Expenses Salaries 1,568,605 1,616,183 1,581,080 1,790,226 Hourly Wages 649,051 731,344 679,021 679,021 Overtime 1,982 - - - Health Benefits 276,365 309,689 322,742 366,058 Retirement Benefits 536,359 564,257 552,423 622,755 Other Personnel Expense 130,670 142,925 173,974 171,243 Personnel Expenses Subtotal 3,163,032 3,364,398 3,309,240 3,629,303 Non-Personnel Expenses Supplies & Services 245,641 213,462 202,838 201,994 Other Expenses 660 550 400 400 Utilities 280,142 289,691 297,306 257,704 Internal Service Charges - - - 3,345 Non-Personnel Expenses Subtotal 526,443 503,703 500,544 463,443 TOTAL EXPENDITURES 3,689,475$ 3,868,101$ 3,809,784$ 4,092,746$ REVENUES Fines and Penalties (116,291) (100,844) (118,000) (118,000) Use of Money & Property (42,889) (38,968) (57,550) (57,550) Revenue from Other Agencies (2,274) (6,010) (2,000) (2,000) Charges for Services (353,890) (533,824) (315,013) (315,013) Other Revenue (52,626) (7,861) (8,850) (8,850) TOTAL REVENUES (567,970)$ (687,507)$ (501,413)$ (501,413)$ NET PROGRAM EXPENDITURES 3,121,505$ 3,180,594$ 3,308,371$ 3,591,333$ REVENUE RECOVERY %15% 18% 13%12% AUTHORIZED FULL TIME POSITIONS 22.50 22.50 22.50 24.00 Budget Restructuring: (1) The Cultural Arts Program was moved from the Economic Development Department to the Library Department in FY 2019. ȋͳͺȌ 84 235 ʹͲͳͻ 85 236 86 237 ʹͲͳͻ dŚĞĞǀĞůŽƉŵĞŶƚ^ĞƌǀŝĐĞƐĨƵŶĚĂĐĐŽƵŶƚƐĨŽƌƌĞǀĞŶƵĞƐ ĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ƉƌŽĐĞƐƐŝŶŐ ŽĨ ĚĞǀĞůŽƉŵĞŶƚ ƉůĂŶƐ ĂŶĚ ƉĞƌŵŝƚƐ͘ dŚĞ ĨƵŶĚ ƉƌŽǀŝĚĞƐ WůĂŶŶŝŶŐ͕ ƵŝůĚŝŶŐ͕ ŶŐŝŶĞĞƌŝŶŐ͕ >ĂŶĚƐĐĂƉĞ ƌĐŚŝƚĞĐƚƵƌĞ͕ ĂŶĚ ƉĞƌŵŝƚƚŝŶŐ ƐĞƌǀŝĐĞƐ ƚŽ ƉƌŽƉĞƌƚLJ ŽǁŶĞƌƐ͕ĚĞǀĞůŽƉĞƌƐ͕ĂŶĚƚŚĞŝƚLJĂƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞ ĞŶƚŝƚůĞŵĞŶƚ ĂŶĚͬŽƌ ŝŵƉƌŽǀĞŵĞŶƚ ŽĨ ƉƌŽƉĞƌƚLJ͘ dŚĞ ƐĞƌǀŝĐĞƐ ƉƌŽǀŝĚĞĚ ĞŶĐŽŵƉĂƐƐ ŵŽƐƚ ĚĞǀĞůŽƉŵĞŶƚ ĂĐƚŝǀŝƚŝĞƐ͕ ŝŶĐůƵĚŝŶŐ ůĂŶĚ ƵƐĞ ĞŶƚŝƚůĞŵĞŶƚƐ͖ ƉƵďůŝĐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͕ ŽƉĞŶ ƐƉĂĐĞ͕ ĂŶĚ ůĂŶĚƐĐĂƉĞ ƉůĂŶŶŝŶŐ͖ ƉƵďůŝĐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ĐŽŶƐƚƌƵĐƚŝŽŶ͕ ŐƌĂĚŝŶŐ ĂŶĚ ďƵŝůĚŝŶŐƉĞƌŵŝƚƐ͘ ,ŝƐƚŽƌŝĐĂůůLJ͕ ƚŚĞ ƐƚĂĨĨ ŝŶǀŽůǀĞĚ ŝŶ ƚŚĞ ƉƌŽĐĞƐƐŝŶŐ ŽĨ ĚĞǀĞůŽƉŵĞŶƚƉůĂŶƐĂŶĚƉĞƌŵŝƚƐǁĞƌĞƌĞĨůĞĐƚĞĚŝŶƚŚĞ ŝƚLJ͛Ɛ'ĞŶĞƌĂů&ƵŶĚ͘ĞŐŝŶŶŝŶŐŝŶĨŝƐĐĂůLJĞĂƌϮϬϬϵ͕Ăůů ƚŚĞƐƚĂĨĨŝŶǀŽůǀĞĚŝŶƚŚĞƉƌŽĐĞƐƐŝŶŐŽĨĚĞǀĞůŽƉŵĞŶƚ ƉůĂŶƐ ĂŶĚ ƉĞƌŵŝƚƐ ǁĞƌĞ ďƵĚŐĞƚĞĚ ĚŝƌĞĐƚůLJ ŝŶ ƚŚĞ ĞǀĞůŽƉŵĞŶƚ ^ĞƌǀŝĐĞƐ &ƵŶĚ͘ ŽŶƐŽůŝĚĂƚŝŶŐ Ăůů ĚĞǀĞůŽƉŵĞŶƚ ƐĞƌǀŝĐĞ ĐŽƐƚ ĐĞŶƚĞƌƐ ŝŶ Ă ƐŝŶŐůĞ ĨƵŶĚ ĐůĞĂƌůLJ ĚĞůŝŶĞĂƚĞƐ ĚĞǀĞůŽƉŵĞŶƚ ƌĞůĂƚĞĚ ĐŽƐƚƐ ĂŶĚ ƌĞǀĞŶƵĞƐ ĨƌŽŵ 'ĞŶĞƌĂů &ƵŶĚ ƐƵƉƉŽƌƚĞĚ ƐĞƌǀŝĐĞƐ͖ ƚŚĞƌĞďLJ ŵĂŬŝŶŐ ƚŚĞ ŶĞdžƵƐ ďĞƚǁĞĞŶ ĚĞǀĞůŽƉŵĞŶƚ ƌĞůĂƚĞĚ ĂĐƚŝǀŝƚŝĞƐ͕ ĐŽƐƚƐ͕ ĨĞĞƐ͕ ĂŶĚ ƌĞǀĞŶƵĞƐ ŵŽƌĞ ƚƌĂŶƐƉĂƌĞŶƚ͘dŚŝƐĂůƐŽĂůůŽǁƐŽƉĞƌĂƚŝŶŐĞdžƉĞŶƐĞƐƚŽďĞ ĂĚũƵƐƚĞĚ ƚŽ ĐŽŝŶĐŝĚĞ ǁŝƚŚ ĐŚĂŶŐĞƐ ŝŶ ĚĞŵĂŶĚ ĨŽƌ ĚĞǀĞůŽƉŵĞŶƚ ƐĞƌǀŝĐĞƐ͘ dŚŝƐ ĂĚũƵƐƚŵĞŶƚ ŽĨ ŽƉĞƌĂƚŝŶŐ ĞdžƉĞŶƐĞƐĂŝĚƐŝŶĂǀŽŝĚŝŶŐŝŵƉĂĐƚƐƚŽƚŚĞ'ĞŶĞƌĂů&ƵŶĚ ǁŚĞŶƌĞǀĞŶƵĞĨůƵĐƚƵĂƚŝŽŶƐŽĐĐƵƌĂƐƌĞƐƵůƚŽĨĐŚĂŶŐĞƐ ŝŶĚĞǀĞůŽƉŵĞŶƚĂĐƚŝǀŝƚLJ͘ ĞŐŝŶŶŝŶŐ ŝŶ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϮ͕ ƚŚĞ ĞǀĞůŽƉŵĞŶƚ ^ĞƌǀŝĐĞƐĨƵŶĚǁĂƐĂĐĐŽƵŶƚĞĚĨŽƌĂƐĂŶĞŶƚĞƌƉƌŝƐĞĨƵŶĚ͘ Z s Eh ^ dŚĞ ƉƌŽƉŽƐĞĚ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ ďƵĚŐĞƚ ƌĞĨůĞĐƚƐ ƚŚĞ ĐŽŶƚŝŶƵĞĚ ĞĨĨŽƌƚ ŽĨ ďĂůĂŶĐŝŶŐ ĚĞǀĞůŽƉŵĞŶƚ ƌĞůĂƚĞĚ ƌĞƐŽƵƌĐĞƐ ĂůŽŶŐ ǁŝƚŚ ƚŚĞ ĚĞŵĂŶĚ ĨŽƌ ĚĞǀĞůŽƉŵĞŶƚ ƌĞůĂƚĞĚ ƐĞƌǀŝĐĞƐ͘ &ŝƐĐĂů LJĞĂƌ ϮϬϭϵ ƌĞǀĞŶƵĞƐ ĂƌĞ ƉƌŽũĞĐƚĞĚ ƚŽ ďĞ ƐƵĨĨŝĐŝĞŶƚ ƚŽ ƐƵƉƉŽƌƚ ƉƌŽũĞĐƚĞĚ ĞdžƉĞŶĚŝƚƵƌĞƐ͘ ĞǀĞůŽƉŵĞŶƚ ƌĞůĂƚĞĚ ƌĞǀĞŶƵĞƐ ĐŽŶƐŝƐƚ ŽĨ ƚǁŽ ĐĂƚĞŐŽƌŝĞƐ͗ĚĞǀĞůŽƉŵĞŶƚƉƌŽĐĞƐƐŝŶŐĨĞĞƌĞǀĞŶƵĞƐĂŶĚ ĚĞƉŽƐŝƚďĂƐĞĚƌĞǀĞŶƵĞƐ͘ĞǀĞůŽƉŵĞŶƚƉƌŽĐĞƐƐŝŶŐĨĞĞ ƌĞǀĞŶƵĞƐ ŝŶĐůƵĚĞ ďƵŝůĚŝŶŐ ƉĞƌŵŝƚƐ͕ ƉůĂŶŶŝŶŐ ĨĞĞƐ͕ ŽƚŚĞƌďƵŝůĚŝŶŐĚĞƉĂƌƚŵĞŶƚĨĞĞƐ͕ĂŶĚĞŶŐŝŶĞĞƌŝŶŐĨĞĞƐ͘ ĞƉŽƐŝƚďĂƐĞĚƌĞǀĞŶƵĞƐĂƌĞŐĞŶĞƌĂƚĞĚƚŚƌŽƵŐŚƐƚĂĨĨ ƚŝŵĞƌĞŝŵďƵƌƐĞŵĞŶƚƐƌĞůĂƚĞĚƚŽƐƉĞĐŝĨŝĐƉƌŽũĞĐƚƐ͘dŚĞ ŝƚLJŝƐĂŶƚŝĐŝƉĂƚŝŶŐƚŚĂƚƚŚĞĨŽůůŽǁŝŶŐŵĂũŽƌƉƌŽũĞĐƚƐ ǁŝůůĐŽŶƚŝŶƵĞƚŽŵŽǀĞĨŽƌǁĂƌĚŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϵ͗ xĂLJĨƌŽŶƚZĞĚĞǀĞůŽƉŵĞŶƚWƌŽũĞĐƚ xDŝůůĞŶŝĂWƌŽũĞĐƚ x&ƌĞĞǁĂLJŽŵŵĞƌĐŝĂůEŽƌƚŚ xKƚĂLJZĂŶĐŚsŝůůĂŐĞƐ xhŶŝǀĞƌƐŝƚLJ>ĂŶĚ ŶƚŝƚůĞŵĞŶƚWƌŽũĞĐƚƐ dŚĞ ĨŽůůŽǁŝŶŐ ƚĂďůĞ ĐŽŵƉĂƌĞƐ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ ƌĞǀĞŶƵĞƐ ƚŽ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚƵĚŐĞƚƌĞǀĞŶƵĞƐ͘ ĞǀĞůŽƉŵĞŶƚ^ĞƌǀŝĐĞƐ&ƵŶĚZĞǀĞŶƵĞƐ &ŝƐĐĂůzĞĂƌƐϮϬϭϴƚŽϮϬϭϵ ĂƚĞŐŽƌLJ &zϮϬϭϴ KWd &zϮϬϭϵ WZKWK^ ŚĂŶŐĞйŚĂŶŐĞ KƚŚĞƌ>ŽĐĂůdĂdžĞƐ ϳ͕ϬϬϬΨ ϳ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй >ŝĐĞŶƐĞƐĂŶĚWĞƌŵŝƚƐ Ϯ͕ϬϲϮ͕ϲϮϵΨ ϯ͕ϲϵϵ͕ϬϬϱΨ ϭ͕ϲϯϲ͕ϯϳϲΨ ϳϵ͘ϯй ŚĂƌŐĞƐĨŽƌ^ĞƌǀŝĐĞƐ ϱ͕ϲϵϳ͕ϭϮϮΨ ϱ͕ϴϱϴ͕ϭϭϰΨ ϭϲϬ͕ϵϵϮΨ Ϯ͘ϴй KƚŚĞƌZĞǀĞŶƵĞ ϭ͕ϮϬϵ͕ϭϰϳΨ ϯϵϬ͕ϰϲϰΨ ;ϴϭϴ͕ϲϴϯͿΨ Ͳϲϳ͘ϳй dƌĂŶƐĨĞƌƐ/Ŷ ϴϲϯ͕ϳϵϭΨ ϰϲϯ͕ϳϵϭΨ ;ϰϬϬ͕ϬϬϬͿΨ Ͳϰϲ͘ϯй dŽƚĂůZĞǀĞŶƵĞƐ ϵ͕ϴϯϵ͕ϲϴϵΨ ϭϬ͕ϰϭϴ͕ϯϳϰΨ ϱϳϴ͕ϲϴϱΨ ϱ͘ϵй 87 238 ʹͲͳͻ WƌŽũĞĐƚŝŽŶƐĨŽƌĨŝƐĐĂůLJĞĂƌϮϬϭϵƌĞǀĞŶƵĞƐǁĞƌĞďĂƐĞĚŽŶ ĂƚƌĞŶĚĂŶĂůLJƐŝƐŽĨĨŝƐĐĂůLJĞĂƌϮϬϭϳĂĐƚƵĂůƌĞǀĞŶƵĞƐĂŶĚ ĐƵƌƌĞŶƚĨŝƐĐĂůLJĞĂƌϮϬϭϴƉƌŽũĞĐƚŝŽŶƐ͘^ƚĂĨĨŚĂƐƚĂŬĞŶŝŶƚŽ ĂĐĐŽƵŶƚ ƚŚĞ ƌĞǀĞŶƵĞ ĐŚĂŶŐĞƐ ŶĞĞĚĞĚ ĂƐ ƉĂƌƚ ŽĨ ƌĞƐŽƵƌĐĞ ƌĞĂůŝŐŶŵĞŶƚ ĂŶĚ ĐŽƐƚ ƌĞĐŽǀĞƌLJ ŵŽĚĞů͘ ƐƵŵŵĂƌLJŽĨƚŚĞŶŽƚĂďůĞĐŚĂŶŐĞƐďLJĐĂƚĞŐŽƌLJĂƌĞůŝƐƚĞĚ ďĞůŽǁ͗ x>ŝĐĞŶƐĞƐĂŶĚWĞƌŵŝƚƐʹdŚĞŝŶĐƌĞĂƐĞŝŶƚŚŝƐĐĂƚĞŐŽƌLJ ŽĨ Ψϭ͘ϲ ŵŝůůŝŽŶ͕ ƌĞĨůĞĐƚƐ ƌĞǀĞŶƵĞ ŝŶĐƌĞĂƐĞƐ ĨŽƌ ƉƌŽũĞĐƚĞĚ ĚĞǀĞůŽƉŵĞŶƚ ĂĐƚŝǀŝƚLJ ĂŶĚ ƌĞͲ ĐĂƚĞŐŽƌŝnjĂƚŝŽŶŽĨƌĞǀĞŶƵĞƐĨƌŽŵƚŚĞKƚŚĞƌZĞǀĞŶƵĞ ĐĂƚĞŐŽƌLJ͘ xŚĂƌŐĞƐĨŽƌ^ĞƌǀŝĐĞʹdŚĞΨϬ͘ϮŵŝůůŝŽŶŝŶĐƌĞĂƐĞŝŶ ƚŚŝƐ ĐĂƚĞŐŽƌLJ ƌĞĨůĞĐƚƐ ŝŶĐƌĞĂƐĞƐ ŝŶ ƐƚĂĨĨ ƚŝŵĞ ƌĞŝŵďƵƌƐĞŵĞŶƚƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ǁŽƌŬůŽĂĚ ĂŶƚŝĐŝƉĂƚĞĚĨŽƌŵĂũŽƌƉƌŽũĞĐƚƐ͘ xKƚŚĞƌ ZĞǀĞŶƵĞ ʹ ĂƐĞĚ ŽŶ ƚƌĞŶĚƐ ŽĨ ĐƵƌƌĞŶƚ ƌĞǀĞŶƵĞƐ͕ƚŚŝƐĐĂƚĞŐŽƌLJŚĂƐďĞĞŶƌĞĚƵĐĞĚďLJΨϬ͘ϴ ŵŝůůŝŽŶĂŶĚƌĞͲĐĂƚĞŐŽƌŝnjĞĚƚŽ>ŝĐĞŶƐĞƐĂŶĚWĞƌŵŝƚƐ͘ xdƌĂŶƐĨĞƌƐ/ŶʹdŚĞĚĞĐƌĞĂƐĞŽĨΨϬ͘ϰŵŝůůŝŽŶŝƐĚƵĞƚŽ ƚŚĞĞůŝŵŝŶĂƚŝŽŶŽĨĂŐĞŶĞƌĂůĨƵŶĚƐƵďƐŝĚLJ͘ yW E/dhZ ^ dŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵWƌŽƉŽƐĞĚƵĚŐĞƚŝŶĐůƵĚĞƐĨƵŶĚŝŶŐ ĨŽƌϱϱ͘ϬƉŽƐŝƚŝŽŶƐŝŶƚŚĞĞǀĞůŽƉŵĞŶƚ^ĞƌǀŝĐĞƐ&ƵŶĚ͘ ƐƵŵŵĂƌLJŽĨƚŚĞŶŽƚĂďůĞĐŚĂŶŐĞƐďĞƚǁĞĞŶƚŚĞĨŝƐĐĂů LJĞĂƌ ϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ ƚŽ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚƵĚŐĞƚďLJĐĂƚĞŐŽƌLJĂƌĞůŝƐƚĞĚĂƐĨŽůůŽǁƐ͗ xWĞƌƐŽŶŶĞů ^ĞƌǀŝĐĞƐ ʹ dŚŝƐ ĐĂƚĞŐŽƌLJ ƌĞĨůĞĐƚƐ Ă ŶĞƚ ŝŶĐƌĞĂƐĞŽĨΨϬ͘ϴŵŝůůŝŽŶǁŚĞŶĐŽŵƉĂƌĞĚƚŽƚŚĞ ĨŝƐĐĂůLJĞĂƌϮϬϭϴĚŽƉƚĞĚƵĚŐĞƚ͘dŚĞŝŶĐƌĞĂƐĞĐĂŶ ďĞ ĂƚƚƌŝďƵƚĞĚ ƚŽ ƚŚĞ ĂĚĚŝƚŝŽŶĂů ƉŽƐŝƚŝŽŶƐ͕ ƚŚĞ ĂŶŶƵĂůŝnjĞĚ ĐŽƐƚƐ ŽĨ ƐĂůĂƌLJ ŝŶĐƌĞĂƐĞƐ ƚŽ ǀĂƌŝŽƵƐ ƉĞƌƐŽŶŶĞů ĐŽƐƚƐ ŝŶĐůƵĚŝŶŐ ƉŽƐŝƚŝŽŶ ŝŶĐƌĞĂƐĞƐ͕ ĂŶLJ ĂƉƉƌŽǀĞĚ DKh ŶĞŐŽƚŝĂƚĞĚ ƐĂůĂƌLJ ŝŶĐƌĞĂƐĞƐ͕ ƐĐŚĞĚƵůĞĚ ƐƚĞƉ ŝŶĐƌĞĂƐĞƐ͕ Ă Ϯй ǁĂŐĞ ŝŶĨůĂƚŝŽŶ ĞƐƚŝŵĂƚĞ͕ ŽǀĞƌƚŝŵĞ͕ W Z^͕ ĨůĞdžͬŝŶƐƵƌĂŶĐĞ͕ ĂŶĚ tŽƌŬĞƌ͛ƐŽŵƉĐŚĂƌŐĞƐ͘ x^ƵƉƉůŝĞƐ ĂŶĚ ^ĞƌǀŝĐĞƐ ʹ dŚĞ ƉƌŽƉŽƐĞĚ ďƵĚŐĞƚ ƌĞĨůĞĐƚƐĂŶŝŶĐƌĞĂƐĞŽĨΨϬ͘ϮŵŝůůŝŽŶŝŶƚŚŝƐĐĂƚĞŐŽƌLJ͘ dŚŝƐŝŶĐƌĞĂƐĞŝƐĚƵĞƚŽƐŽĨƚǁĂƌĞĞdžƉĞŶƐĞƐĂŶĚ ĂĚũƵƐƚŵĞŶƚƐďĂƐĞĚŽŶƉƌŝŽƌLJĞĂƌĂĐƚƵĂůƐ͕ŝŶŽƌĚĞƌƚŽ ƉƌŽǀŝĚĞ ƐƵĨĨŝĐŝĞŶƚ ƌĞƐŽƵƌĐĞƐ ƚŽ ƉƌŽĐĞƐƐ ƉĞŶĚŝŶŐ ĚĞǀĞůŽƉŵĞŶƚƉƌŽũĞĐƚƐ͘ x/ŶƚĞƌŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐʹdŚŝƐĂŶĞǁůLJĐƌĞĂƚĞĚ ĐĂƚĞŐŽƌLJďƌĞĂŬŝŶŐŽƵƚƐĞƌǀŝĐĞĐŚĂƌŐĞƐĨƌŽŵŽƚŚĞƌ ĚĞƉĂƌƚŵĞŶƚƐ͕ ƐƵĐŚ ĂƐ ĨůĞĞƚ ŵĂŶĂŐĞŵĞŶƚ͘ dŚŝƐ ĐĂƚĞŐŽƌLJǁĂƐƉƌĞǀŝŽƵƐůLJĂƉĂƌƚŽĨƚŚĞƐƵƉƉůŝĞƐĂŶĚ ƐĞƌǀŝĐĞƐĐĂƚĞŐŽƌLJ͘ xdƌĂŶƐĨĞƌƐKƵƚʹdŚĞWƌŽƉŽƐĞĚƵĚŐĞƚƌĞĨůĞĐƚƐĂŶ ŝŶĐƌĞĂƐĞ ŽĨ ƐƚĂĨĨ ƚŝŵĞ ƌĞŝŵďƵƌƐĞŵĞŶƚƐ ŽĨ ΨϬ͘ϭ ŵŝůůŝŽŶ͘ ƐŝůůƵƐƚƌĂƚĞĚŝŶƚŚĞĨŽůůŽǁŝŶŐƚĂďůĞ͕WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐ ĞdžƉĞŶĚŝƚƵƌĞƐŝŶƚŚĞĞǀĞůŽƉŵĞŶƚ^ĞƌǀŝĐĞƐ&ƵŶĚĂƌĞƚŚĞ ůĂƌŐĞƐƚ ĐŽŵƉŽŶĞŶƚ ŽĨ ƚŚĞ &ƵŶĚ͛Ɛ ĞdžƉĞŶĚŝƚƵƌĞƐ͕ ŵƵĐŚ ƚŚĞ ƐĂŵĞ ĂƐ ƚŚĞ ŝƚLJ͛Ɛ 'ĞŶĞƌĂů &ƵŶĚ ďƵĚŐĞƚ͘ dŚĞ dƌĂŶƐĨĞƌƐ KƵƚ ĞdžƉĞŶĚŝƚƵƌĞ ĐĂƚĞŐŽƌLJ ƌĞŝŵďƵƌƐĞƐ ƚŚĞ 'ĞŶĞƌĂů&ƵŶĚĨŽƌĐŝƚLJǁŝĚĞĂŶĚĚĞƉĂƌƚŵĞŶƚĂůŽǀĞƌŚĞĂĚ͘ ZĞŝŵďƵƌƐĞĚĐŝƚLJǁŝĚĞŽǀĞƌŚĞĂĚŝŶĐůƵĚĞƐƐƵƉƉŽƌƚĐŽƐƚƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ &ŝŶĂŶĐĞ͕ ,ƵŵĂŶ ZĞƐŽƵƌĐĞƐ͕ /ŶĨŽƌŵĂƚŝŽŶ dĞĐŚŶŽůŽŐLJ ^ĞƌǀŝĐĞƐ͕ ƵƐƚŽĚŝĂů ^ĞƌǀŝĐĞƐ͕ ĂŶĚŝƚLJƚƚŽƌŶĞLJ͘ ĞǀĞůŽƉŵĞŶƚ^ĞƌǀŝĐĞƐ&ƵŶĚ džƉĞŶĚŝƚƵƌĞƐ &ŝƐĐĂůzĞĂƌϮϬϭϴƚŽϮϬϭϵ ĂƚĞŐŽƌLJ &zϮϬϭϴ KWd &zϮϬϭϵ WZKWK^ ŚĂŶŐĞйŚĂŶŐĞ WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐ ϳ͕ϭϲϳ͕ϴϵϲΨ ϳ͕ϵϳϮ͕ϵϰϰΨϴϬϱ͕ϬϰϴΨ ϭϭ͘Ϯй ^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐ ϱϴϴ͕ϬϵϱΨ ϴϮϯ͕ϵϯϴΨϮϯϱ͕ϴϰϯΨ ϰϬ͘ϭй KƚŚĞƌ džƉĞŶƐĞƐ ϭϵϱ͕ϬϬϬΨ ϭϵϱ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй ĂƉŝƚĂů ϴϱ͕ϱϬϬΨ ϴϱ͕ϱϬϬΨ ͲΨ Ϭ͘Ϭй hƚŝůŝƚŝĞƐ ϱ͕ϲϱϬΨ ϱ͕ϲϱϬΨ ͲΨ Ϭ͘Ϭй /ŶƚĞƌŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐ ͲΨ ϯϴ͕ϲϮϮΨ ϯϴ͕ϲϮϮΨϭϬϬ͘Ϭй dƌĂŶƐĨĞƌƐKƵƚ ϭ͕ϳϵϲ͕ϲϰϴΨ ϭ͕ϵϮϯ͕ϲϰϴΨϭϮϳ͕ϬϬϬΨ ϳ͘ϭй dŽƚĂů džƉĞŶĚŝƚƵƌĞƐ ϵ͕ϴϯϴ͕ϳϴϵΨ ϭϭ͕Ϭϰϱ͕ϯϬϮΨ ϭ͕ϮϬϲ͕ϱϭϯΨ ϭϮ͘ϯй 88 239 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 6,614,261 6,049,543 7,167,896 7,972,944 Supplies & Services 348,734 384,463 588,095 823,938 Other Expenses 251,692 127,694 195,000 195,000 Other Capital 9,072 9,243 85,500 85,500 Utilities 6,194 5,062 5,650 5,650 Internal Service Charges - - - 38,622 Transfers Out 1,187,557 1,796,648 1,796,648 1,923,648 Non-CIP Project Expenditures - 22,851 - - TOTAL EXPENDITURES 8,417,510$ 8,395,504$ 9,838,789$ 11,045,302$ REVENUES Taxes (8,114) (8,359) (7,000) (7,000) Licenses & Permits (2,070,899) (2,583,881) (2,062,629) (3,699,005) Charges for Services (4,012,746) (4,194,028) (5,697,122) (5,858,114) Other Revenue (472,010) (506,260) (1,209,147) (390,464) Transfers In (626,616) (841,760) (863,791) (463,791) TOTAL REVENUES (7,190,385)$ (8,134,288)$ (9,839,689)$ (10,418,374)$ NET PROGRAM EXPENDITURES 1,227,125$ 261,216$ (900)$ 626,928$ ȋͶͲͺȌ 89 240 90 241 ʹͲͳͻ ^ƵĐĐĞƐƐŽƌŐĞŶĐLJ&ƵŶĚƐ ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJ&ƵŶĚƐ 91 242 92 243 ʹͲͳͻ KŶĞĐĞŵďĞƌϮϵ͕ϮϬϭϭ͕ƚŚĞĂůŝĨŽƌŶŝĂ^ƵƉƌĞŵĞŽƵƌƚ ƵƉŚĞůĚ džϭ Ϯϲ ĚŝƐƐŽůǀŝŶŐ ĂůŝĨŽƌŶŝĂ ƌĞĚĞǀĞůŽƉŵĞŶƚ ĂŐĞŶĐŝĞƐ͘ ĨĨĞĐƚŝǀĞ&ĞďƌƵĂƌLJϭ͕ϮϬϭϮ͕ĂůůƌĞĚĞǀĞůŽƉŵĞŶƚ ĂŐĞŶĐŝĞƐ ǁĞƌĞ ĚŝƐƐŽůǀĞĚ ĂŶĚ ƚŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ĂƐƐƵŵĞĚ ƚŚĞ ƌŽůĞ ŽĨ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ ;ŝƚLJ ŽƵŶĐŝů ƌĞƐŽůƵƚŝŽŶϮϬϭϭͲϭϲϰͿ͘ dŚĞ^ƵĐĐĞƐƐŽƌŐĞŶĐLJŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌƚŚĞǁŝŶĚĚŽǁŶ ŽĨ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ ĂĐƚŝǀŝƚŝĞƐ ĂŶĚ ŽďůŝŐĂƚŝŽŶƐ͘ dŚĞ ĂĐƚ ŽĨ ǁŝŶĚŝŶŐ ĚŽǁŶ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ ŝƐ ƐŝŐŶŝĨŝĐĂŶƚ͘ dŚĞ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ ǁŝůů ĐŽŶƚŝŶƵĞ ƚŽ ŽǀĞƌƐĞĞ ĂŶĚ ŝŵƉůĞŵĞŶƚ Ăůů ůĞŐĂůůLJ ŽďůŝŐĂƚĞĚ ĐŽŶƚƌĂĐƚĞĚ ǁŽƌŬ͕ ƉƌŽũĞĐƚƐ ĂŶĚ ƉƌŽŐƌĂŵƐ ĂƐ ǁĞůů ĂƐ ĚŝƐƉŽƐĞ ŽĨ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ ĂƐƐĞƚƐ͘ ^ŝŶĐĞ ĂƉƉƌŽdžŝŵĂƚĞůLJ ϲϴйŽĨƚŚĞĨŽƌŵĞƌZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJͲŽǁŶĞĚůĂŶĚ ;Ϯϰ ĂĐƌĞƐ ŽĨ ϯϱ͘Ϯϰ ĂĐƌĞƐͿ ŝƐ ĐŽŶƚĂŵŝŶĂƚĞĚ ƚŚĞƌĞ ĂƌĞ ĐůĞĂŶƵƉƌĞƋƵŝƌĞŵĞŶƚƐĂƐǁĞůůĂƐƌĞŵĞĚŝĂƚŝŽŶƚŚĂƚǁŝůů ďĞŶĞĐĞƐƐĂƌLJƚŽĚŝƐƉŽƐĞŽĨƚŚĞƐĞƉƌŽƉĞƌƚŝĞƐ͘^ŝŐŶŝĨŝĐĂŶƚ ĂĚŵŝŶŝƐƚƌĂƚŝǀĞŽďůŝŐĂƚŝŽŶƐǁŝůůĐŽŶƚŝŶƵĞƚŽĞdžŝƐƚŝŶƚŚĞ ƉƌĞƉĂƌĂƚŝŽŶ ŽĨ ďƵĚŐĞƚƐ ĂŶĚ ĚŽĐƵŵĞŶƚĂƚŝŽŶ ƚŽ ďĞ ƐƵďŵŝƚƚĞĚƚŽĂŶĚƌĞǀŝĞǁĞĚďLJƚŚĞ^ƵĐĐĞƐƐŽƌŐĞŶĐLJ͕ KǀĞƌƐŝŐŚƚŽĂƌĚ͕ŽƵŶƚLJŽĨ^ĂŶŝĞŐŽĂŶĚƚŚĞ^ƚĂƚĞ ĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ͘ ƐƌĞƋƵŝƌĞĚďLJdžϭϮϲ͕ĂŶKǀĞƌƐŝŐŚƚŽĂƌĚ͕ĐŽŵƉŽƐĞĚ ŽĨĂĨĨĞĐƚĞĚƚĂdžŝŶŐĞŶƚŝƚŝĞƐǁŝƚŚŝŶƚŚĞŝƚLJ͕ǁĂƐĐƌĞĂƚĞĚ͘ dŚĞ ƉƌŝŵĂƌLJ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ŽĨ ƚŚĞ KǀĞƌƐŝŐŚƚ ŽĂƌĚ ŝƐ ƌĞǀŝĞǁŝŶŐ ĂŶĚ ĂƉƉƌŽǀŝŶŐ ƚŚĞ ZĞĐŽŐŶŝnjĞĚ KďůŝŐĂƚŝŽŶ WĂLJŵĞŶƚ^ĐŚĞĚƵůĞĂŶĚƐĞƌǀŝŶŐŝŶĂĨŝĚƵĐŝĂƌLJƌŽůĞƚŽƚŚĞ ƚĂdžŝŶŐ ĞŶƚŝƚŝĞƐ ƚŚĂƚ ƚŚĞ KǀĞƌƐŝŐŚƚ ŽĂƌĚ ƌĞƉƌĞƐĞŶƚƐ͘ ^ŽŵĞ ŚŝƐƚŽƌŝĐĂů ŝŶĨŽƌŵĂƚŝŽŶ ĨŽůůŽǁƐ ƌĞŐĂƌĚŝŶŐ ƚŚĞ ĨŽƌŵĞƌZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJ͘/ƚŝƐĂŶƚŝĐŝƉĂƚĞĚƚŚĂƚ ƚŚĞKǀĞƌƐŝŐŚƚŽĂƌĚǁŝůůďĞƚƌĂŶƐŝƚŝŽŶĞĚƚŽŽŶĞĐĞŶƚƌĂů ŽƵŶƚLJKǀĞƌƐŝŐŚƚŽĂƌĚŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϵ͘ dŚĞŚƵůĂsŝƐƚĂZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJǁĂƐĐƌĞĂƚĞĚŽŶ KĐƚŽďĞƌϮϰ͕ϭϵϳϮďLJŝƚLJŽƵŶĐŝůKƌĚŝŶĂŶĐĞ͘dŚĞŐŽĂůƐ ŽĨƚŚĞĨŽƌŵĞƌZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJǁĞƌĞƚŽƌĞĚƵĐĞ ďůŝŐŚƚ ĂŶĚ ƚŽ ĞŶĐŽƵƌĂŐĞ ŶĞǁ ĚĞǀĞůŽƉŵĞŶƚ͕ ƌĞĐŽŶƐƚƌƵĐƚŝŽŶ͕ ĂŶĚ ƌĞŚĂďŝůŝƚĂƚŝŽŶ ŽĨ ƌĞƐŝĚĞŶƚŝĂů͕ ĐŽŵŵĞƌĐŝĂů͕ ŝŶĚƵƐƚƌŝĂů͕ ĂŶĚ ƌĞƚĂŝů ƵƐĞƐ͘ ^ŝŶĐĞ ƚŚĞ ŐĞŶĐLJ͛ƐĐƌĞĂƚŝŽŶ͕ƚŚĞŝƚLJĂĚŽƉƚĞĚĂŶĚĂŵĞŶĚĞĚƐŝdž ƉƌŽũĞĐƚ ĂƌĞĂƐ ƚŽ ĞŶĐŽŵƉĂƐƐ Ă ƚŽƚĂů ŽĨ ĂƉƉƌŽdžŝŵĂƚĞůLJ ϯ͕ϱϲϯ ĂĐƌĞƐ ŽĨ ŝƚLJ ƚĞƌƌŝƚŽƌLJ͘ >ĂŶĚ ƵƐĞƐ ǁŝƚŚŝŶ ƚŚĞƐĞ ĂƌĞĂƐ ĂƌĞ ŵŽƐƚůLJ ĐŽŵŵĞƌĐŝĂů ĂŶĚ ŝŶĚƵƐƚƌŝĂů͕ ďƵƚ ĂůƐŽ ŝŶĐůƵĚĞƐ ƐŽŵĞ ƌĞƐŝĚĞŶƚŝĂů ĂŶĚ ƉƵďůŝĐ ƵƐĞƐ ;Ğ͘Ő͕͘ ŐŽǀĞƌŶŵĞŶƚĂů ĂĚŵŝŶŝƐƚƌĂƚŝǀĞ ĐĞŶƚĞƌƐ͕ ĐŽƌƉŽƌĂƚŝŽŶ LJĂƌĚƐ͕ƐƚƌĞĞƚƐ͕ĞƚĐ͘Ϳ͘ &hE ^Z/Wd/KE^ dŚĞ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ ďƵĚŐĞƚ ŝƐ ŽƌŐĂŶŝnjĞĚ ŝŶƚŽ ZĞĚĞǀĞůŽƉŵĞŶƚKďůŝŐĂƚŝŽŶZĞƚŝƌĞŵĞŶƚ&ƵŶĚ;ZKZ&ͿĂŶĚ ĚĞďƚƐĞƌǀŝĐĞĨƵŶĚƐ͘dŚĞZKZ&ĂĐĐŽƵŶƚƐĨŽƌƚŚĞƐƚĂĨĨŝŶŐ ĂŶĚ ŽƚŚĞƌ ĞdžƉĞŶĚŝƚƵƌĞƐ ƌĞƋƵŝƌĞĚ ŝŶ ǁŝŶĚŝŶŐ ĚŽǁŶ ĂĐƚŝǀŝƚŝĞƐ ŽĨ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ͘ dŚĞ Ğďƚ ^ĞƌǀŝĐĞ ĨƵŶĚƐ ĂƌĞ ƵƐĞĚ ƚŽ ƉĂLJ ĨŽƌ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ͛Ɛ ĚĞďƚ ƐĞƌǀŝĐĞ ŽŶ ŝƚƐ ŽƵƚƐƚĂŶĚŝŶŐdĂdžůůŽĐĂƚŝŽŶŽŶĚƐ͕ůŽĂŶƐĂŶĚŽƚŚĞƌĚĞďƚ ŽĨƚŚĞĨŽƌŵĞƌZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJ͘ ^ĞǀĞƌĂů ĨƵŶĚƐ ǁĞƌĞ ĞůŝŵŝŶĂƚĞĚ ĂƐ Ă ƌĞƐƵůƚ ŽĨ ƚŚĞ ĚŝƐƐŽůƵƚŝŽŶ ŽĨ ƚŚĞ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ͘ dŚĞ ĞůŝŵŝŶĂƚĞĚĨƵŶĚƐĂƌĞĨŽƌŵĞƌŽƉĞƌĂƚŝŶŐĨƵŶĚƐϯϭϳ͕ϲϭϭ͕ ϲϱϭ ĂŶĚ ƉĂƐƐͲƚŚƌŽƵŐŚ ĨƵŶĚƐ ϲϳϭͲϲϳϱ͘ /Ŷ ĂĚĚŝƚŝŽŶ ƚŚĞ ĚĞďƚƐĞƌǀŝĐĞĨƵŶĚƐůŝƐƚĞĚďĞůŽǁƌĞƉůĂĐĞĨƵŶĚƐϲϵϭĂŶĚ ϲϵϯͲϲϵϳ͘ KƉĞƌĂƚŝŶŐ&ƵŶĚƐ x&ƵŶĚ ϯϭϴ͗ ZĞĚĞǀĞůŽƉŵĞŶƚ KďůŝŐĂƚŝŽŶ ZĞƚŝƌĞŵĞŶƚ &ƵŶĚ;ZKZ&Ϳ dŚĞZKZ&ǁŝůůƐĞƌǀĞĂƐƚŚĞƉƌŝŵĂƌLJŽƉĞƌĂƚŝŶŐĨƵŶĚƐ ŝŶƚŚĞǁŝŶĚŝŶŐĚŽǁŶŽĨƚŚĞĨŽƌŵĞƌZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ͘ dŚŝƐ ĨƵŶĚ ǁŝůů ďĞ ƵƐĞĚ ƚŽ ƉĂLJ ƚŚĞ ĚŽĐƵŵĞŶƚĞĚĞŶĨŽƌĐĞĂďůĞŽďůŝŐĂƚŝŽŶƐŽĨƚŚĞĨŽƌŵĞƌ ƌĞĚĞǀĞůŽƉŵĞŶƚĂŐĞŶĐLJƚŚĂƚŚĂǀĞďĞĞŶĂƉƉƌŽǀĞĚďLJ ƚŚĞ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ KǀĞƌƐŝŐŚƚ ŽĂƌĚ ĂŶĚ ƚŚĞ ^ƚĂƚĞĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ͘ Ğďƚ^ĞƌǀŝĐĞ&ƵŶĚƐ dŚĞ Ğďƚ ^ĞƌǀŝĐĞ ĨƵŶĚƐ ĂƌĞ ƵƐĞĚ ƚŽ ƉĂLJ ĨŽƌ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJĚĞďƚƐĞƌǀŝĐĞŽŶŝƚƐŽƵƚƐƚĂŶĚŝŶŐ dĂdž ůůŽĐĂƚŝŽŶ ŽŶĚƐ͕ ůŽĂŶƐ ĂŶĚ ŽƚŚĞƌ ĚĞďƚ ŽĨ ƚŚĞ ĨŽƌŵĞƌZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJ͘ x&ƵŶĚϲϲϭ͗ϮϬϬϱdĂdžĂďůĞZĞǀĞŶƵĞŽŶĚƐ^ĞƌŝĞƐʹ Zͬ Z&>ŽĂŶWƌŽŐƌĂŵ /Ŷ Ɖƌŝů ϮϬϬϱ͕ ƚŚĞ ŐĞŶĐLJ ĞŶƚĞƌĞĚ ŝŶƚŽ Ă >ŽĂŶ ŐƌĞĞŵĞŶƚ ǁŝƚŚ ƚŚĞ ĂůŝĨŽƌŶŝĂ ^ƚĂƚĞǁŝĚĞ ŽŵŵƵŶŝƚŝĞƐ ĞǀĞůŽƉŵĞŶƚ ƵƚŚŽƌŝƚLJ ƚŽ ďŽƌƌŽǁ ƚŚĞĂŵŽƵŶƚŽĨΨϳϲϱ͕ϬϬϬ͘dŚŝƐĂŵŽƵŶƚǁĂƐƵƐĞĚƚŽ ƉĂLJƚŚĞŐĞŶĐLJ͛ƐƉŽƌƚŝŽŶŽĨƚŚĞϮϬϬϱ ĚƵĐĂƚŝŽŶĂů ZĞǀĞŶƵĞƵŐŵĞŶƚĂƚŝŽŶ&ƵŶĚ; Z&ͿƚŽƚŚĞŽƵŶƚLJ ŽĨ^ĂŶŝĞŐŽƉƵƌƐƵĂŶƚƚŽ^ĞĐƚŝŽŶϯϯϲϴϭ͘ϭϮŽĨƚŚĞ 93 244 ʹͲͳͻ ĂůŝĨŽƌŶŝĂ,ĞĂůƚŚĂŶĚ^ĂĨĞƚLJŽĚĞ͘dŚŝƐůŽĂŶǁĂƐ ƉĂŝĚŽĨĨŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϱ͘ x&ƵŶĚϲϲϮ͗ϮϬϬϲdĂdžĂďůĞZĞǀĞŶƵĞŽŶĚƐ^ĞƌŝĞƐʹ Zͬ Z&>ŽĂŶWƌŽŐƌĂŵ /Ŷ Ɖƌŝů ϮϬϬϲ͕ ƚŚĞ ŐĞŶĐLJ ĞŶƚĞƌĞĚ ŝŶƚŽ Ă >ŽĂŶ ŐƌĞĞŵĞŶƚ ǁŝƚŚ ƚŚĞ ĂůŝĨŽƌŶŝĂ ^ƚĂƚĞǁŝĚĞ ŽŵŵƵŶŝƚŝĞƐ ĞǀĞůŽƉŵĞŶƚ ƵƚŚŽƌŝƚLJ ƚŽ ďŽƌƌŽǁ ƚŚĞĂŵŽƵŶƚŽĨΨϵϯϬ͕ϬϬϬ͘dŚŝƐĂŵŽƵŶƚǁĂƐƵƐĞĚƚŽ ƉĂLJƚŚĞŐĞŶĐLJ͛ƐƉŽƌƚŝŽŶŽĨƚŚĞϮϬϬϲ ĚƵĐĂƚŝŽŶĂů ZĞǀĞŶƵĞƵŐŵĞŶƚĂƚŝŽŶ&ƵŶĚ; Z&ͿƚŽƚŚĞŽƵŶƚLJ ŽĨ^ĂŶŝĞŐŽƉƵƌƐƵĂŶƚƚŽ^ĞĐƚŝŽŶϯϯϲϴϭ͘ϭϮŽĨƚŚĞ ĂůŝĨŽƌŶŝĂ,ĞĂůƚŚĂŶĚ^ĂĨĞƚLJŽĚĞ͘dŚŝƐůŽĂŶǁĂƐ ƉĂŝĚŽĨĨŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϲ͘ x&ƵŶĚ ϲϲϯ͗ ϮϬϬϲ ^ĞŶŝŽƌ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ͕^ĞƌŝĞƐ /Ŷ:ƵůLJϮϬϬϲ͕ƚŚĞZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJŝƐƐƵĞĚƚŚĞ ϮϬϬϲ^ĞŶŝŽƌdĂdžůůŽĐĂƚŝŽŶŽŶĚƐ͕^ĞƌŝĞƐŝŶƚŚĞ ĂŵŽƵŶƚŽĨΨϭϯ͕ϰϯϱ͕ϬϬϬƚŽƌĞĨŝŶĂŶĐĞƚŚĞŐĞŶĐLJ͛Ɛ ŽƵƚƐƚĂŶĚŝŶŐĂLJĨƌŽŶƚͬdŽǁŶĞŶƚƌĞZĞĚĞǀĞůŽƉŵĞŶƚ WƌŽũĞĐƚϭϵϵϰ^ĞŶŝŽƌdĂdžůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐ ^ĞƌŝĞƐ;ƚŚĞ͞ϭϵϵϰŽŶĚƐͿ͘dŚĞŽƌŝŐŝŶĂůďŽŶĚƐ ǁĞƌĞ ŝƐƐƵĞĚ ƚŽ ĨŝŶĂŶĐĞ ŝŵƉƌŽǀĞŵĞŶƚƐ ŝŶ ƚŚĞ ĂLJĨƌŽŶƚͬdŽǁŶ ĞŶƚƌĞ WƌŽũĞĐƚ ƌĞĂƐ͘ dŚĞ ďŽŶĚƐ ŚĂǀĞďĞĞŶƌĞĨŝŶĂŶĐĞĚĂƐĂƉĂƌƚŽĨƚŚĞϮϬϭϲdĂdž ůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐ͘ x&ƵŶĚ ϲϲϰ͗ ϮϬϬϲ ^ƵďŽƌĚŝŶĂƚĞ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ͕^ĞƌŝĞƐ /Ŷ:ƵůLJϮϬϬϲ͕ƚŚĞZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJŝƐƐƵĞĚƚŚĞ ϮϬϬϲ^ƵďŽƌĚŝŶĂƚĞdĂdžůůŽĐĂƚŝŽŶŽŶĚƐ͕^ĞƌŝĞƐŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ ΨϭϮ͕ϯϮϱ͕ϬϬϬ ƚŽ ƌĞĨŝŶĂŶĐĞ ƚŚĞ ŐĞŶĐLJ͛Ɛ ŽƵƚƐƚĂŶĚŝŶŐ ĂLJĨƌŽŶƚͬdŽǁŶ ĞŶƚƌĞ ZĞĚĞǀĞůŽƉŵĞŶƚWƌŽũĞĐƚϭϵϵϰ^ĞŶŝŽƌdĂdžůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ^ĞƌŝĞƐ;ƚŚĞ͞ϭϵϵϰŽŶĚƐͿĂŶĚ ƚŚĞ ϭϵϵϰ ^ƵďŽƌĚŝŶĂƚĞ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ͕ ^ĞƌŝĞƐ ;ƚŚĞ ϭϵϵϰ ŽŶĚƐͿ dŚĞ ŽƌŝŐŝŶĂů ďŽŶĚƐǁĞƌĞŝƐƐƵĞĚƚŽĨŝŶĂŶĐĞŝŵƉƌŽǀĞŵĞŶƚƐŝŶƚŚĞ ĂLJĨƌŽŶƚͬdŽǁŶ ĞŶƚƌĞ WƌŽũĞĐƚ ƌĞĂƐ͘ dŚĞ ďŽŶĚƐ ŚĂǀĞďĞĞŶƌĞĨŝŶĂŶĐĞĚĂƐĂƉĂƌƚŽĨƚŚĞϮϬϭϲdĂdž ůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐ͘ x&ƵŶĚ ϲϲϱ͗ Z ϮϬϬϴ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ;dZƐͿ dŚŝƐĨƵŶĚǁĂƐĞƐƚĂďůŝƐŚĞĚƚŽĂĐĐŽƵŶƚĨŽƌƚŚĞĚĞďƚ ƐĞƌǀŝĐĞ ƉĂLJŵĞŶƚƐ ĨŽƌ ƚŚĞ ƌĞĨƵŶĚŝŶŐ ŽĨ ƚŚĞ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ ϮϬϬϬ dĂdž ůůŽĐĂƚŝŽŶ ŽŶĚƐ;DĞƌŐĞĚZĞĚĞǀĞůŽƉŵĞŶƚWƌŽũĞĐƚͿŝŶƚŚĞ ĂŵŽƵŶƚ ŽĨ ΨϮϭ͕ϲϮϱ͕ϬϬϬ͘ dŚĞ DĞƌŐĞĚ ZĞĚĞǀĞůŽƉŵĞŶƚWƌŽũĞĐƚǁĂƐĐƌĞĂƚĞĚŽŶƵŐƵƐƚϮϮ͕ ϮϬϬϬ͕ ƉƵƌƐƵĂŶƚ ƚŽ ĂŶ ĂŵĞŶĚŵĞŶƚ ƚŽ ƚŚĞ ƌĞĚĞǀĞůŽƉŵĞŶƚƉůĂŶƐĨŽƌƚŚƌĞĞŽĨƚŚĞŐĞŶĐLJ͛ƐĨŽƵƌ ĞdžŝƐƚŝŶŐƌĞĚĞǀĞůŽƉŵĞŶƚƉƌŽũĞĐƚƐ͕ƚŚĞdŽǁŶĞŶƚƌĞ //WƌŽũĞĐƚƌĞĂ͕ƚŚĞKƚĂLJsĂůůĞLJWƌŽũĞĐƚƌĞĂĂŶĚƚŚĞ ^ŽƵƚŚǁĞƐƚWƌŽũĞĐƚƌĞĂ͘dŚĞDĞƌŐĞĚWƌŽũĞĐƚƌĞĂ ǁĂƐĂŵĞŶĚĞĚŝŶϮϬϬϰĂĚĚŝŶŐϰϵϰĂĐƌĞƐ͘dŚĞŽŶĚƐ ǁĞƌĞŝƐƐƵĞĚƚŽƉƌŽǀŝĚĞĨƵŶĚƐĨŽƌƚŚĞƌĞƉĂLJŵĞŶƚŽĨ ĐĞƌƚĂŝŶŽďůŝŐĂƚŝŽŶƐŽĨƚŚĞDĞƌŐĞĚZĞĚĞǀĞůŽƉŵĞŶƚ WƌŽũĞĐƚĂŶĚŽƚŚĞƌŝŶƚĞƌĨƵŶĚůŽĂŶƐ͕ĂŶĚĨŽƌŐĞŶĞƌĂů ƌĞĚĞǀĞůŽƉŵĞŶƚ ƉƵƌƉŽƐĞƐ͘ dŚĞ ďŽŶĚƐ ŚĂǀĞ ďĞĞŶ ƌĞĨŝŶĂŶĐĞĚ ĂƐ Ă ƉĂƌƚ ŽĨ ƚŚĞ ϮϬϭϲ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ͘ x&ƵŶĚϲϲϲ͗ϮϬϭϲdĂdžůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐ /Ŷ:ƵůLJϮϬϭϲ͕ƚŚĞ^ƵĐĐĞƐƐŽƌŐĞŶĐLJŝƐƐƵĞĚƚŚĞdĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ ŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ ΨϮϵ͕ϯϭϱ͕ϬϬϬƚŽƌĞĨŝŶĂŶĐĞƚŚĞŐĞŶĐLJ͛ƐŽƵƚƐƚĂŶĚŝŶŐ ϮϬϬϲ^ĞŶŝŽƌdĂdžůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐ͕^ĞƌŝĞƐ ͕ ϮϬϬϲ ^ƵďŽƌĚŝŶĂƚĞ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ͕ ^ĞƌŝĞƐ ͕ ĂŶĚ ƚŚĞ ϮϬϬϴ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ͘dŚĞŶŶƵĂůĞďƚ^ĞƌǀŝĐĞŝƐƉĂŝĚ ĨƌŽŵ ƉƌŽƉĞƌƚLJ ƚĂdž ŝŶĐƌĞŵĞŶƚƐ ŐĞŶĞƌĂƚĞĚ ŝŶ ƚŚĞ ƉƌŽũĞĐƚĂƌĞĂƐ͘dŚĞƚĞƌŵŽĨƚŚĞďŽŶĚƐƌƵŶƐƚŚƌŽƵŐŚ ϮϬϯϲ͘ x&ƵŶĚϲϵϮ͗>ŽŶŐdĞƌŵĚǀĂŶĐĞƐĞďƚ^ĞƌǀŝĐĞ&ƵŶĚʹ ZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJ dŚŝƐ ĨƵŶĚ ǁĂƐ ĞƐƚĂďůŝƐŚĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ ZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJŝŶƚĞƌͲĨƵŶĚůŽĂŶƐ͘ 94 245 ʹͲͳͻ Z s Eh ^ ƐƵŵŵĂƌLJŽĨƌĞǀĞŶƵĞƐďLJĐĂƚĞŐŽƌLJĂƌĞůŝƐƚĞĚďĞůŽǁ͗ xWƌŽƉĞƌƚLJdĂdžĞƐʹdŚĞƌĞǀĞŶƵĞƐŝŶƚŚŝƐĐĂƚĞŐŽƌLJĂƌĞ ƌĞĐĞŝǀĞĚĚƵĞƚŽƚŚĞĚŝƐƐŽůƵƚŝŽŶŽĨƚŚĞ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ͘ WƌŽƉĞƌƚLJ ƚĂdž ŝŶĐƌĞŵĞŶƚ ƌĞǀĞŶƵĞƐĂƌĞŶŽǁƌĞĐĞŝǀĞĚďLJƚŚĞŽƵŶƚLJŽĨ^ĂŶ ŝĞŐŽ ĂŶĚ ǁŝůů ďĞ ĚŝƐƚƌŝďƵƚĞĚ ƚŽ ƚŚĞ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ ďĂƐĞĚ ŽŶ ĚŽĐƵŵĞŶƚĞĚ ĞŶĨŽƌĐĞĂďůĞ ŽďůŝŐĂƚŝŽŶƐƚŚĂƚŚĂǀĞďĞĞŶĂƉƉƌŽǀĞĚďLJďŽƚŚƚŚĞ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ KǀĞƌƐŝŐŚƚ ŽĂƌĚ ĂŶĚ ƚŚĞ ^ƚĂƚĞ ĞƉĂƌƚŵĞŶƚŽĨ&ŝŶĂŶĐĞ͘ xdƌĂŶƐĨĞƌƐ/ŶʹdŚĞdƌĂŶƐĨĞƌͲ/ŶĂŵŽƵŶƚĨŽƌƚŚĞĨŝƐĐĂů LJĞĂƌϮϬϭϵWƌŽƉŽƐĞĚƵĚŐĞƚŚĂƐƌĞŵĂŝŶĞĚƚŚĞƐĂŵĞ ĂƐƚŚĞƉƌĞǀŝŽƵƐLJĞĂƌ͘ dŚĞƚĂďůĞďĞůŽǁƉƌŽǀŝĚĞƐĂƌĞǀĞŶƵĞĐŽŵƉĂƌŝƐŽŶŽĨƚŚĞ ĨŝƐĐĂůLJĞĂƌϮϬϭϴĚŽƉƚĞĚƵĚŐĞƚƚŽƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ WƌŽƉŽƐĞĚ ƵĚŐĞƚ͘ dŚĞ ƚĂďůĞ ĚŽĞƐ ŶŽƚ ƌĞĨůĞĐƚ ƚŚĞ ƌĞǀĞŶƵĞ ďƵĚŐĞƚ ŽĨ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ĨƵŶĚƐ ǁŚŝĐŚ ĂƌĞ ƌĞĨůĞĐƚĞĚ ŝŶ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ƐĞĐƚŝŽŶ ŽĨ ƚŚĞ ďƵĚŐĞƚ ĚŽĐƵŵĞŶƚ͘ ZĞĚĞǀĞůŽƉŵĞŶƚͬ^ƵĐĐĞƐƐŽƌŐĞŶĐLJKƉĞƌĂƚŝŶŐ&ƵŶĚZĞǀĞŶƵĞƐ &ŝƐĐĂůzĞĂƌƐϮϬϭϴƚŽϮϬϭϵ ĂƚĞŐŽƌLJ &ƵŶĚϯϭϴ &zϮϬϭϴ KWd &ƵŶĚϯϭϴ &zϮϬϭϵ WZKWK^ ŚĂŶŐĞ йŚĂŶŐĞ WƌŽƉĞƌƚLJdĂdžĞƐ ϰ͕ϵϲϳ͕ϭϱϬΨ ϰ͕ϵϲϳ͕ϭϱϬΨ ͲΨ Ϭ͘Ϭй dƌĂŶƐĨĞƌƐ/Ŷ ϯ͕ϳϬϵΨ ϯ͕ϳϬϵΨ ͲΨ Ϭ͘Ϭй dŽƚĂůZĞǀĞŶƵĞƐ ϰ͕ϵϳϬ͕ϴϱϵΨ ϰ͕ϵϳϬ͕ϴϱϵΨ ͲΨϬ͘Ϭй 95 246 ʹͲͳͻ yW E/dhZ ^ džƉĞŶĚŝƚƵƌĞƐĨŽƌĨŝƐĐĂůLJĞĂƌϮϬϭϵĂƌĞǁŝŶĚŝŶŐĚŽǁŶĨŽƌ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ ĂĐƚŝǀŝƚŝĞƐ ĂŶĚ ĚŽĐƵŵĞŶƚĞĚĞŶĨŽƌĐĞĂďůĞŽďůŝŐĂƚŝŽŶƐ͘ xdƌĂŶƐĨĞƌƐ KƵƚ ʹ dŚĞ ƚƌĂŶƐĨĞƌƐ ŽƵƚ ĞdžƉĞŶĚŝƚƵƌĞ ĐĂƚĞŐŽƌLJ ĂĐĐŽƵŶƚƐ ĨŽƌ ƚŚĞ ƌĞƋƵŝƌĞĚ ĚĞďƚ ƐĞƌǀŝĐĞ ĨŽƌƚŚĞ^ƵĐĐĞƐƐŽƌŐĞŶĐLJ͘ŽŶĚĞĚĚĞďƚƐĞƌǀŝĐĞĨŽƌ ƚŚĞ ϮϬϭϲ dZ^ ŝƐ ĂƉƉƌŽdžŝŵĂƚĞůLJ ΨϮ͘ϴ ŵŝůůŝŽŶ͘ dŚĞdƌĂŶƐĨĞƌƐKƵƚĐĂƚĞŐŽƌLJŚĂƐŝŶĐƌĞĂƐĞĚĚƵĞƚŽ ƚŚĞ ƐĐŚĞĚƵůĞĚ ŝŶĐƌĞĂƐĞ ŽĨ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ƉĂLJŵĞŶƚƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ϮϬϭϲ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ͘ dŚĞƚĂďůĞďĞůŽǁƉƌŽǀŝĚĞƐĂĐŽŵƉĂƌŝƐŽŶŽĨƚŚĞϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ ĞdžƉĞŶĚŝƚƵƌĞƐ ƚŽ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵWƌŽƉŽƐĞĚƵĚŐĞƚĞdžƉĞŶĚŝƚƵƌĞƐ͘dŚĞƚĂďůĞĚŽĞƐ ŶŽƚ ƌĞĨůĞĐƚ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ĞdžƉĞŶĚŝƚƵƌĞ ďƵĚŐĞƚ ǁŚŝĐŚŝƐĚŝƐĐƵƐƐĞĚŝŶƚŚĞĚĞďƚƐĞƌǀŝĐĞƐĞĐƚŝŽŶŽĨƚŚŝƐ ĚŽĐƵŵĞŶƚ͘ ZĞĚĞǀĞůŽƉŵĞŶƚͬ^ƵĐĐĞƐƐŽƌŐĞŶĐLJKƉĞƌĂƚŝŶŐ&ƵŶĚ džƉĞŶĚŝƚƵƌĞƐ &ŝƐĐĂůzĞĂƌϮϬϭϴƚŽϮϬϭϵ ĂƚĞŐŽƌLJ &ƵŶĚƐϯϭϴ &zϮϬϭϴ KWd &ƵŶĚƐϯϭϴ &zϮϬϭϵ WZKWK^ ŚĂŶŐĞ йŚĂŶŐĞ ^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐ ϲ͕ϬϬϬΨ ϲ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй KƚŚĞƌ džƉĞŶƐĞƐ ϲϮϵ͕ϬϬϬΨ ϲϮϵ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй dƌĂŶƐĨĞƌƐKƵƚ Ϯ͕ϱϲϯ͕ϬϬϬΨ Ϯ͕ϴϬϮ͕ϵϮϱΨ Ϯϯϵ͕ϵϮϱΨ ϵ͘ϰй dŽƚĂů džƉĞŶĚŝƚƵƌĞƐ ϯ͕ϭϵϴ͕ϬϬϬΨ ϯ͕ϰϯϳ͕ϵϮϱΨ Ϯϯϵ͕ϵϮϱΨϳ͘ϱй 96 247 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 35,030 17,565 6,000 6,000 Other Expenses 792,705 748,110 629,000 629,000 Utilities 1,484 857 - - Transfers Out 5,062,975 4,305,726 2,563,000 2,802,925 TOTAL EXPENDITURES 5,892,194$ 5,072,258$ 3,198,000$ 3,437,925$ REVENUES Taxes (5,314,687) (3,870,883) (4,967,150) (4,967,150) Use of Money and Property (42,310) (6,027) - - Transfers In - (3,706) (3,709) (3,709) TOTAL REVENUES (5,356,997)$ (3,880,616)$ (4,970,859)$ (4,970,859)$ NET PROGRAM EXPENDITURES 535,197$ 1,191,642$ (1,772,859)$ (1,532,934)$ ȋ͵ͳͺȌ 97 248 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 12,595 4,075 5,000 5,000 Other Expenses 2,069,162 1,899,380 1,523,000 1,482,925 Transfers Out - 44,368,383 3,709 3,709 TOTAL EXPENDITURES 2,081,757$ 46,271,838$ 1,531,709$ 1,491,634$ REVENUES Use of Money and Property (52,069) (344,896) - - Other Revenue (800) (4,454,034) - - Transfers In (5,062,975) (48,661,651) (2,563,000) (2,802,925) TOTAL REVENUES (5,115,844)$ (53,460,581)$ (2,563,000)$ (2,802,925)$ NET PROGRAM EXPENDITURES (3,034,087)$ (7,188,743)$ (1,031,291)$ (1,311,291)$ BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 661-05 ERAF - SA - 1,847 1,848 1,848 662-06 ERAF - SA 5,868 1,858 1,861 1,861 663-06 TABs Series A - SA 395,656 1,853,436 - - 664-06 TABs Series B - SA 436,242 2,136,116 - - 665-08 TABs - SA 923,990 2,619,769 - - 666-2016 TARBs - 39,658,812 1,178,000 1,137,925 692-Long-Term Advances DSF-RDA SA 320,001 - 350,000 350,000 TOTAL EXPENDITURES 2,081,757$ 46,271,838$ 1,531,709$ 1,491,634$ REVENUES 661-05 ERAF - SA (833) - - - 662-06 ERAF - SA (127,785) (646) - - 663-06 TABs Series A - SA (1,027,739) (9,730,362) - - 664-06 TABs Series B - SA (995,724) (9,456,094) - - 665-08 TABs - SA (1,541,088) (21,842,593) - - 666-2016 TARBs - (11,639,467) (2,563,000) (2,802,925) 692-Long-Term Advances DSF-RDA SA (1,422,675) (791,419) - - TOTAL REVENUES (5,115,844)$ (53,460,581)$ (2,563,000)$ (2,802,925)$ NET PROGRAM EXPENDITURES (3,034,087)$ (7,188,743)$ (1,031,291)$ (1,311,291)$ Ǧ ȋͳǦͻʹȌ Ǧ ȋͳǦͻʹȌ 98 249 ʹͲͳͻ dŚĞ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJǁĂƐĨŽƌŵĞĚŝŶϭϵϵϯ͘,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJĐĂŶƉƌŽǀŝĚĞƚĂdžͲĞdžĞŵƉƚďŽŶĚĨŝŶĂŶĐŝŶŐ͕ŽǁŶ ĂŶĚ ŽƉĞƌĂƚĞ ŚŽƵƐŝŶŐ͕ ĂŶĚ ŽƉĞƌĂƚĞ ǀĂƌŝŽƵƐ ŚŽƵƐŝŶŐ ƉƌŽŐƌĂŵƐ͘ dŚĞ ƐĞĐƚŝŽŶ ϴ ƌĞŶƚĂů ĂƐƐŝƐƚĂŶĐĞ ƉƌŽŐƌĂŵ ŝŶĐůƵĚŝŶŐWƵďůŝĐ,ŽƵƐŝŶŐŝŶŚƵůĂsŝƐƚĂŝƐŽƉĞƌĂƚĞĚďLJ ƚŚĞŽƵŶƚLJŽĨ^ĂŶŝĞŐŽ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJ͘tŝƚŚƚŚĞ ĞůŝŵŝŶĂƚŝŽŶŽĨƚŚĞŝƚLJ͛ƐƌĞĚĞǀĞůŽƉŵĞŶƚĂŐĞŶĐLJŝŶϮϬϭϮ͕ ƚŚĞ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJĂƐƐƵŵĞĚƚŚĞŚŽƵƐŝŶŐĨƵŶĐƚŝŽŶƐ ŽĨ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ͕ ďĞĐŽŵŝŶŐ Ă ͞^ƵĐĐĞƐƐŽƌ ,ŽƵƐŝŶŐ ŐĞŶĐLJ͘͟ ,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJ ƐƚĂĨĨ ƉƌŽǀŝĚĞƐĐŽŵƉƌĞŚĞŶƐŝǀĞŚŽƵƐŝŶŐƐĞƌǀŝĐĞƐĨŽƌƚŚĞŝƚLJ ŝŶĐůƵĚŝŶŐ ŶĞǁ ĚĞǀĞůŽƉŵĞŶƚ ĂŶĚ ƉƌŽŐƌĂŵ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ͘ dŚĞ ŚƵůĂ sŝƐƚĂ ,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJ ĨƵŶĚ ŝƐ ƚŚĞ ĐůĞĂƌŝŶŐŚŽƵƐĞ ĨŽƌ Ăůů ŚŽƵƐŝŶŐ ƌĞůĂƚĞĚ ƐƚĂĨĨ ĂĐƚŝǀŝƚLJ͘ /ŶĐůƵĚĞĚŝŶƚŚŝƐĨƵŶĚĂƌĞƉĞƌƐŽŶŶĞůĞdžƉĞŶƐĞƐǁŚŝĐŚĂƌĞ ƌĞŝŵďƵƌƐĞĚďLJǀĂƌŝŽƵƐĨƵŶĚŝŶŐƐŽƵƌĐĞƐƐƵĐŚĂƐƚŚĞh^ ĞƉĂƌƚŵĞŶƚŽĨ,ŽƵƐŝŶŐĂŶĚhƌďĂŶĞǀĞůŽƉŵĞŶƚ'ƌĂŶƚ &ƵŶĚƐĂŶĚ>ŽǁͬDŽĚĞƌĂƚĞ/ŶĐŽŵĞ,ŽƵƐŝŶŐ&ƵŶĚƐ͘dŚĞ ,ŽƵƐŝŶŐ &ƵŶĚ ǁŝůů ƌĞĐĞŝǀĞ Ψϭ ŵŝůůŝŽŶ ŝŶ ƐƚĂĨĨ ƚŝŵĞ ƌĞŝŵďƵƌƐĞŵĞŶƚƐ ĨŽƌ ŵĂŶĂŐŝŶŐ ƚŚĞ ŝƚLJ͛Ɛ ĨĨŽƌĚĂďůĞ ,ŽƵƐŝŶŐ͕ ĂĚŵŝŶŝƐƚĞƌŝŶŐ ^ƚĂƚĞ ĂŶĚ &ĞĚĞƌĂů 'ƌĂŶƚ WƌŽŐƌĂŵƐ͕ ĂŶĚ ĨŽƌ ŵŽŶŝƚŽƌŝŶŐ ďŽŶĚ ĐŽǀĞŶĂŶƚƐ ĨŽƌ ĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐďŽŶĚƐŝƐƐƵĞĚďLJƚŚĞŝƚLJ͛Ɛ,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJ͘ dŚĞ ,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJ ĨŽĐƵƐĞƐ ŽŶ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ŽĨ ƐƵƐƚĂŝŶĂďůĞ ŶĞŝŐŚďŽƌŚŽŽĚƐ ƚŚƌŽƵŐŚ ŝŶǀĞƐƚŵĞŶƚƐ ŝŶ ĂŶĚ ĂĚŵŝŶŝƐƚƌĂƚŝŽŶ ŽĨ ƉƌŽŐƌĂŵƐ ƚŚĂƚ ƐĞĞŬƚŽŝŵƉƌŽǀĞ͕ƉƌĞƐĞƌǀĞ͕ĂŶĚŝŶĐƌĞĂƐĞƚŚĞƐƵƉƉůLJŽĨ ĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐŝŶŚƵůĂsŝƐƚĂĂŶĚƐĞƌǀĞůŽǁŝŶĐŽŵĞ ƌĞƐŝĚĞŶƚƐƐƵĐŚĂƐ͗ x>ŽŶŐͲƌĂŶŐĞ ƉůĂŶŶŝŶŐ ŽĨ ŚŽƵƐŝŶŐ ŐŽĂůƐ ĂŶĚ ĂŶŶƵĂů ŵŽŶŝƚŽƌŝŶŐŽĨ,ŽƵƐŝŶŐ ůĞŵĞŶƚŐŽĂůƐ xWƌĞĚĞǀĞůŽƉŵĞŶƚĨŝŶĂŶĐŝŶŐ x&ŝŶĂŶĐŝŶŐ ĂŶĚ ĂƐƐŝƐƚĂŶĐĞ ŝŶ ƚŚĞ ƉƌŽĚƵĐƚŝŽŶ ŽĨ ĂĨĨŽƌĚĂďůĞƌĞŶƚĂůŚŽƵƐŝŶŐƚŚƌŽƵŐŚŶĞǁĐŽŶƐƚƌƵĐƚŝŽŶ ĂŶĚĂĐƋƵŝƐŝƚŝŽŶͬƌĞŚĂďŝůŝƚĂƚŝŽŶ xZĞŚĂďŝůŝƚĂƚŝŽŶ ŐƌĂŶƚƐ ĂŶĚ ůŽĂŶƐ ĨŽƌ ƐŵĂůů ŽǁŶĞƌͲ ŽĐĐƵƉŝĞĚĂŶĚƌĞŶƚĂůƉƌŽƉĞƌƚŝĞƐ xWƌŽǀŝĚĞƌĞŶƚĂůĂƐƐŝƐƚĂŶĐĞ x džƉĂŶĚ ŚŽŵĞ ŽǁŶĞƌƐŚŝƉ ŽƉƉŽƌƚƵŶŝƚŝĞƐ ĨŽƌ ĨŝƌƐƚͲ ƚŝŵĞŚŽŵĞďƵLJĞƌƐ xƐƐŝƐƚĂŶĐĞƚŽŚŽŵĞůĞƐƐƐŚĞůƚĞƌͬƐĞƌǀŝĐĞƉƌŽǀŝĚĞƌƐ xKǀĞƌƐĞĞĐŽŶƚƌĂĐƚƐǁŝƚŚƐŽĐŝĂůƐĞƌǀŝĐĞĂŐĞŶĐŝĞƐĨŽƌ ƚŚĞƉƌŽǀŝƐŝŽŶŽĨƐĞƌǀŝĐĞƐƚŽůŽǁͬŵŽĚĞƌĂƚĞŝŶĐŽŵĞ ƌĞƐŝĚĞŶƚƐ xĞǀĞůŽƉ ĂŶĚ ŝŵƉůĞŵĞŶƚ ƉŽůŝĐŝĞƐ ĂŶĚ ƉƌŽŐƌĂŵƐ ƌĞůĂƚĞĚƚŽĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐ &hE ^Z/Wd/KE^ KƉĞƌĂƚŝŶŐ&ƵŶĚƐ x&ƵŶĚϯϭϯ͗ŚƵůĂsŝƐƚĂ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJ dŚĞŚƵůĂsŝƐƚĂ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJ&ƵŶĚĂĐĐŽƵŶƚƐ ĨŽƌĂůůŚŽƵƐŝŶŐƌĞůĂƚĞĚĂĐƚŝǀŝƚŝĞƐĨƵŶĚĞĚƚŚƌŽƵŐŚƚŚĞ >ŽǁͬDŽĚĞƌĂƚĞ /ŶĐŽŵĞ ,ŽƵƐŝŶŐ &ƵŶĚ ĂŶĚ ƚŚŽƐĞ ĞůŝŐŝďůĞ ĨŽƌ ƌĞŝŵďƵƌƐĞŵĞŶƚ ƐƵĐŚ ĂƐ ƚŚĞ h͘^͘ ĞƉĂƌƚŵĞŶƚ ŽĨ ,ŽƵƐŝŶŐ ĂŶĚ hƌďĂŶ ĞǀĞůŽƉŵĞŶƚ ůŽĐŬ'ƌĂŶƚ&ƵŶĚƐ͘ x&ƵŶĚϯϭϵ͗^ƵĐĐĞƐƐŽƌŐĞŶĐLJ,ŽƵƐŝŶŐ&ƵŶĚ dŚĞŝƚLJ͛Ɛ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJďĞĐĂŵĞƚŚĞ^ƵĐĐĞƐƐŽƌ ,ŽƵƐŝŶŐŐĞŶĐLJ͘dŚŝƐĨƵŶĚĂĐĐŽƵŶƚƐĨŽƌĂůůĂƐƐĞƚƐ ;ĞdžĐĞƉƚ ĨƵŶĚ ďĂůĂŶĐĞͿ ŽƌŝŐŝŶĂůůLJ ŚĞůĚ ďLJ ƚŚĞ >Žǁ ĂŶĚ DŽĚĞƌĂƚĞ /ŶĐŽŵĞ ,ŽƵƐŝŶŐ ĨƵŶĚ ĂŶĚ ǁŝůů ĂĐĐŽƵŶƚĨŽƌĂĐƚŝǀŝƚŝĞƐƐŝŵŝůĂƌƚŽƚŚĞ>ŽǁĂŶĚ DŽĚĞƌĂƚĞ /ŶĐŽŵĞ ,ŽƵƐŝŶŐ ƉƌŽŐƌĂŵ͘ dŚĞ ĨƵŶĚ ƌĞǀĞŶƵĞƐĂƌĞŶŽƚĚŝƐĐƌĞƚŝŽŶĂƌLJĂŶĚŵƵƐƚďĞƵƐĞĚ ĨŽƌƚŚĞƉƌŽĚƵĐƚŝŽŶŽĨĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐ͘ ƵĞƚƚĂ ĂŶĚ sŽůƚĂ ĨĨŽƌĚĂďůĞ ƉĂƌƚŵĞŶƚƐ ŝŶ DŝůůĞŶŝĂ͕ ĂƌĞ ƚŚĞ ŶĞǁĞƐƚ ĂĚĚŝƚŝŽŶƐ ƚŽ ĂĨĨŽƌĚĂďůĞ ƌĞŶƚĂů ŚŽƵƐŝŶŐ ŝŶ ŚƵůĂ sŝƐƚĂ͕ ŵĂĚĞ ƉŽƐƐŝďůĞ ƚŚƌŽƵŐŚ ,KD ĂŶĚ >ŽǁͬDŽĚ ĨƵŶĚŝŶŐ͘ dŚĞ ĚĞǀĞůŽƉŵĞŶƚ ƉƌŽǀŝĚĞƐ ƌĞƐŝĚĞŶƚƐ ĂŶ ŝĚĞĂů ůŽĐĂƚŝŽŶ͕ ǁŝƚŚ ĞĂƐLJ ĂĐĐĞƐƐ ƚŽ ĞŵƉůŽLJŵĞŶƚ ĂŶĚ ĞĚƵĐĂƚŝŽŶŽƉƉŽƌƚƵŶŝƚŝĞƐ͕ĂŶĚĚŝƌĞĐƚĂĐĐĞƐƐƚŽƉƵďůŝĐƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͘ 99 250 ʹͲͳͻ Z s Eh ^ ƐƵŵŵĂƌLJŽĨƚŚĞŶŽƚĂďůĞĐŚĂŶŐĞƐďLJĐĂƚĞŐŽƌLJĂƌĞ ůŝƐƚĞĚďĞůŽǁ͗ xKƚŚĞƌZĞǀĞŶƵĞʹdŚĞƌĞǀĞŶƵĞŝŶƚŚŝƐĐĂƚĞŐŽƌLJŚĂƐ ŝŶĐƌĞĂƐĞĚ ďLJ ΨϬ͘ϭ ŵŝůůŝŽŶ ĚƵĞ ƚŽ ĂŶ ĞdžƉĞĐƚĞĚ ƌĞƐŝĚƵĂůƌĞĐĞŝƉƚŝŶĐƌĞĂƐĞ͘ dŚĞ ƚĂďůĞ ďĞůŽǁ ƉƌŽǀŝĚĞƐ Ă ĐŽŵƉĂƌŝƐŽŶ ŽĨ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ ƚŽ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚƵĚŐĞƚƌĞǀĞŶƵĞƐ͘dŚĞƚĂďůĞĚŽĞƐŶŽƚƌĞĨůĞĐƚ ƚŚĞƌĞǀĞŶƵĞďƵĚŐĞƚŽĨƚŚĞĚĞďƚƐĞƌǀŝĐĞĨƵŶĚƐǁŚŝĐŚĂƌĞ ƌĞĨůĞĐƚĞĚ ŝŶ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ƐĞĐƚŝŽŶ ŽĨ ƚŚĞ ďƵĚŐĞƚ ĚŽĐƵŵĞŶƚ͘ ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJKƉĞƌĂƚŝŶŐ&ƵŶĚZĞǀĞŶƵĞƐ &ŝƐĐĂůzĞĂƌƐϮϬϭϴƚŽϮϬϭϵ ĂƚĞŐŽƌLJ &ƵŶĚƐϯϭϯͬϯϭϵ &zϮϬϭϴ KWd &ƵŶĚƐϯϭϯͬϯϭϵ &zϮϬϭϵ WZKWK^ ŚĂŶŐĞ йŚĂŶŐĞ hƐĞŽĨDŽŶĞLJΘWƌŽƉĞƌƚLJ Ϯϭϱ͕ϬϬϬΨ Ϯϭϱ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй ŚĂƌŐĞƐĨŽƌ^ĞƌǀŝĐĞƐ ϭϬϬ͕ϬϬϬΨ ϭϬϬ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй KƚŚĞƌZĞǀĞŶƵĞ ϭ͕ϭϵϰ͕ϵϴϯΨ ϭ͕ϯϱϵ͕ϬϲϬΨ ϭϲϰ͕ϬϳϳΨ ϭϯ͘ϳй dŽƚĂůZĞǀĞŶƵĞƐ ϭ͕ϱϬϵ͕ϵϴϯΨ ϭ͕ϲϳϰ͕ϬϲϬΨ ϭϲϰ͕ϬϳϳΨϭϬ͘ϵй 100 251 ʹͲͳͻ yW E/dhZ ^ džƉĞŶĚŝƚƵƌĞ ĐŚĂŶŐĞƐ ĨŽƌ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ ĨŽƌ ƚŚĞ ,ŽƵƐŝŶŐƵƚŚŽƌŝƚLJĂƌĞƐƵŵŵĂƌŝnjĞĚďĞůŽǁ͗ xWĞƌƐŽŶŶĞů ^ĞƌǀŝĐĞƐ ʹ /ŶĐƌĞĂƐĞƐ ŝŶ ƉĞƌƐŽŶŶĞů ƐĞƌǀŝĐĞƐ ĂƌĞ ĂƚƚƌŝďƵƚĞĚ ƚŽ ŝŶĐƌĞĂƐĞĚ ĐŽƐƚƐ ĨŽƌ ƉĞƌƐŽŶŶĞůƐĞƌǀŝĐĞƐ͘ x^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐʹdŚĞďƵĚŐĞƚŚĂƐŝŶĐƌĞĂƐĞĚ ďLJΨϬ͘ϭŵŝůůŝŽŶĨƌŽŵƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϴĚŽƉƚĞĚ ƵĚŐĞƚ͘dŚŝƐŝƐĚƵĞƚŽƚŚĞŝŶĐƌĞĂƐĞĚŶĞĞĚĨŽƌ ĐŽŶƐƵůƚĂŶƚ ƐĞƌǀŝĐĞƐ ĂƐ ƚŚĞ ,ŽƵƐŝŶŐ ƵƚŚŽƌŝƚLJ ƵŶĚĞƌƚĂŬĞƐŶĞǁĂĨĨŽƌĚĂďůĞŚŽƵƐŝŶŐƉƌŽũĞĐƚƐĂŶĚ ƉƌŽŐƌĂŵƐ͘ xKƚŚĞƌ džƉĞŶƐĞƐʹdŚĞKƚŚĞƌ džƉĞŶƐĞƐĐĂƚĞŐŽƌLJ ƌĞĨůĞĐƚƐĂĚĞĐƌĞĂƐĞŽĨΨϭ͘ϯŵŝůůŝŽŶ͘dŚŝƐĚĞĐƌĞĂƐĞŝƐ ƚŚĞƌĞƐƵůƚŽĨĂŶŝŶĐƌĞĂƐĞŝŶƌĞŝŵďƵƌƐĞŵĞŶƚƐĨŽƌ ŚŽƵƐŝŶŐͲƌĞůĂƚĞĚ ĂĐƚŝǀŝƚŝĞƐ ĨƌŽŵ ŽƚŚĞƌ ĨƵŶĚŝŶŐ ƐŽƵƌĐĞƐ͕ƌĞƐƵůƚŝŶŐŝŶĂůŽǁĞƌĐŽŶƚƌŝďƵƚŝŽŶĨƌŽŵƚŚĞ >ŽǁͬDŽĚ,ŽƵƐŝŶŐ&ƵŶĚ͘ dŚĞƚĂďůĞďĞůŽǁƉƌŽǀŝĚĞƐĂĐŽŵƉĂƌŝƐŽŶŽĨƚŚĞĨŝƐĐĂů LJĞĂƌ ϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ ƚŽ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚƵĚŐĞƚĞdžƉĞŶĚŝƚƵƌĞƐ͘dŚĞƚĂďůĞĚŽĞƐŶŽƚ ƌĞĨůĞĐƚƚŚĞĚĞďƚƐĞƌǀŝĐĞĞdžƉĞŶĚŝƚƵƌĞďƵĚŐĞƚǁŚŝĐŚŝƐ ĚŝƐĐƵƐƐĞĚŝŶƚŚĞĚĞďƚƐĞƌǀŝĐĞƐĞĐƚŝŽŶŽĨƚŚŝƐĚŽĐƵŵĞŶƚ͘ ^ƵĐĐĞƐƐŽƌ,ŽƵƐŝŶŐŐĞŶĐLJKƉĞƌĂƚŝŶŐ&ƵŶĚ džƉĞŶĚŝƚƵƌĞƐ &ŝƐĐĂůzĞĂƌϮϬϭϴƚŽϮϬϭϵ ĂƚĞŐŽƌLJ &ƵŶĚƐϯϭϯͬϯϭϵ &zϮϬϭϴ KWd &ƵŶĚƐϯϭϯͬϯϭϵ &zϮϬϭϵ WZKWK^ ŚĂŶŐĞ йŚĂŶŐĞ WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐ ϲϱϬ͕ϭϯϭΨ ϲϲϵ͕ϴϬϭΨ ϭϵ͕ϲϳϬΨ ϯ͘Ϭй ^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐ ϭϴϰ͕ϲϬϬΨ ϯϯϮ͕ϯϬϬΨϭϰϳ͕ϳϬϬΨ ϴϬ͘Ϭй KƚŚĞƌ džƉĞŶƐĞƐ ϱ͕ϲϮϱ͕ϵϴϯΨ ϰ͕ϯϭϭ͕ϳϯϳΨ;ϭ͕ϯϭϰ͕ϮϰϲͿΨ ͲϮϯ͘ϰй ĂƉŝƚĂů ϲ͕ϬϬϬΨ ϲ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй dƌĂŶƐĨĞƌƐKƵƚ Ϯϱϰ͕ϲϵϳΨ Ϯϱϰ͕ϲϵϳΨ ͲΨ Ϭ͘Ϭй hƚŝůŝƚŝĞƐ ϭ͕ϭϱϱΨ ϭ͕ϭϱϱΨ ͲΨ Ϭ͘Ϭй dŽƚĂů džƉĞŶĚŝƚƵƌĞƐ ϲ͕ϳϮϮ͕ϱϲϲΨ ϱ͕ϱϳϱ͕ϲϵϬΨ ;ϭ͕ϭϰϲ͕ϴϳϲͿΨͲϭϳ͘ϭй 101 252 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 583,588 602,803 650,131 669,801 Supplies & Services 54,608 29,320 179,000 268,800 Other Expenses 372,914 659 1,010,000 272,500 Utilities 370 14 1,155 1,155 Transfers Out 155,968 254,697 254,697 254,697 TOTAL EXPENDITURES 1,167,448$ 887,493$ 2,094,983$ 1,466,953$ REVENUES Use of Money and Property (16,424) (19,380) - - Charges for Services (195,116) (1,123,478) (100,000) (100,000) Other Revenue (659,987) (956,118) (994,983) (1,104,060) TOTAL REVENUES (871,527)$ (2,098,976)$ (1,094,983)$ (1,204,060)$ NET PROGRAM EXPENDITURES 295,921$ (1,211,483)$ 1,000,000$ 262,893$ ȋ͵ͳ͵Ȍ 102 253 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 42,982 4,015 5,600 63,500 Other Expenses 1,928,529 119,178 4,615,983 4,039,237 Other Capital 2,535 2,700 6,000 6,000 TOTAL EXPENDITURES 1,974,046$ 125,893$ 4,627,583$ 4,108,737$ REVENUES Use of Money and Property (1,009,288) (480,401) (215,000)(215,000) Charges for Services (6,208) (12,000) -- Other Revenue (629,292) (688,573) (200,000)(255,000) TOTAL REVENUES (1,644,788)$ (1,180,974)$ (415,000)$ (470,000)$ NET PROGRAM EXPENDITURES 329,258$ (1,055,081)$ 4,212,583$ 3,638,737$ ȋ͵ͳͻȌ 103 254 104 255 ʹͲͳͻ 105 256 106 257 ʹͲͳͻ dŚĞ^ĞǁĞƌĞŶƚĞƌƉƌŝƐĞĨƵŶĚƐĂĐĐŽƵŶƚĨŽƌƌĞǀĞŶƵĞƐĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ŝƚLJ͛Ɛ ^ĞǁĞƌ ƉƌŽŐƌĂŵƐ͕ ŝŶĐůƵĚŝŶŐŵĂŝŶƚĞŶĂŶĐĞĂŶĚĞdžƉĂŶƐŝŽŶŽĨƚŚĞŝƚLJ͛Ɛ ĐŽŶǀĞLJĂŶĐĞƐLJƐƚĞŵĂŶĚƉĂLJŵĞŶƚŽĨ^ĂŶŝĞŐŽDĞƚƌŽ ǁĂƐƚĞǁĂƚĞƌƚƌĞĂƚŵĞŶƚĐŽƐƚƐ͘ dŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ƉƌŽǀŝĚĞƐ ǁĂƐƚĞǁĂƚĞƌ ĐŽŶǀĞLJĂŶĐĞ ĂŶĚ ƚƌĞĂƚŵĞŶƚ ƐĞƌǀŝĐĞƐ ƚŽ ĂƉƉƌŽdžŝŵĂƚĞůLJ ϱϱ͕ϬϬϬďŝůůŝŶŐĂĐĐŽƵŶƚƐ͕ŝŶĐůƵĚŝŶŐƌĞƐŝĚĞŶƚŝĂůĂŶĚŶŽŶͲ ƌĞƐŝĚĞŶƚŝĂů ƵƐĞƐ͘ dŚĞ ǁĂƐƚĞǁĂƚĞƌ ŐĞŶĞƌĂƚĞĚ ďLJ ŚƵůĂ sŝƐƚĂ ĐƵƐƚŽŵĞƌƐ ŝƐ ĐŽůůĞĐƚĞĚ ĂŶĚ ƐĞŶƚ ƚŽ ƚƌĞĂƚŵĞŶƚ ĨĂĐŝůŝƚŝĞƐŝŶƚŚĞ^ŽƵƚŚĂLJĂŶĚWŽŝŶƚ>ŽŵĂƚŚƌŽƵŐŚƚŚĞ ŝƚLJ͛ƐĞdžƚĞŶƐŝǀĞƐĞǁĞƌĐŽůůĞĐƚŝŽŶƐLJƐƚĞŵ͕ǁŚŝĐŚĐŽŶƐŝƐƚƐ ŽĨϭϰƉƵŵƉƐƚĂƚŝŽŶƐĂŶĚŽǀĞƌϱϬϬŵŝůĞƐŽĨƐĞǁĞƌƉŝƉĞ͘ dŚĞ ^ĂŶ ŝĞŐŽ DĞƚƌŽƉŽůŝƚĂŶ tĂƐƚĞǁĂƚĞƌ ^LJƐƚĞŵ ;^Dt^Ϳ ƉƌŽǀŝĚĞƐ ǁĂƐƚĞǁĂƚĞƌ ƚƌĞĂƚŵĞŶƚ ƐĞƌǀŝĐĞƐ ƚŽ ƚŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ĂŶĚ ŵŽƐƚ ŽĨ ƚŚĞ ƌĞŐŝŽŶ ŽŶ Ă ĐŽŶƚƌĂĐƚ͘ dŚĞ ůĂƚĞƐƚ WŽŝŶƚ >ŽŵĂ dƌĞĂƚŵĞŶƚ WůĂŶƚ ĚǀĂŶĐĞĚWƌŝŵĂƌLJǁĂŝǀĞƌĂƉƉůŝĐĂƚŝŽŶǁĂƐƐƵďŵŝƚƚĞĚŝŶ ϮϬϭϱƚŽƚŚĞZĞŐŝŽŶĂůtĂƚĞƌYƵĂůŝƚLJŽŶƚƌŽůŽĂƌĚ ;ZtYͿ ĂŶĚ ƚŚĞ ŶǀŝƌŽŶŵĞŶƚĂů WƌŽƚĞĐƚŝŽŶ ŐĞŶĐLJ ; WͿ͘dŚĞtĂŝǀĞƌǁĂƐĂƉƉƌŽǀĞĚďLJƐĂŝĚĞŶƚŝƚŝĞƐŝŶƉƌŝů ϮϬϭϳĂŶĚŝƐŶŽǁƌĞĂĚLJĨŽƌƚŚĞĐŽŶĐƵƌƌĞŶĐĞŚĞĂƌŝŶŐďLJ ƚŚĞĂůŝĨŽƌŶŝĂŽĂƐƚĂůŽŵŵŝƐƐŝŽŶ͘dŚĞĐŽƐƚƐĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚƚŚĞƐƉĞĐŝĂůĐŽŶĚŝƚŝŽŶƐŽŶƚŚĞǁĂŝǀĞƌƌĞůĂƚĞĚƚŽƚŚĞ WƵƌĞtĂƚĞƌWƌŽŐƌĂŵĂƌĞƐƚŝůůƵŶŬŶŽǁŶďƵƚĂƌĞĞdžƉĞĐƚĞĚ ƚŽŝŶĐƌĞĂƐĞƚŚĞŝƚLJ͛ƐƐĞǁĞƌƚƌĞĂƚŵĞŶƚďƵĚŐĞƚĂƐƐŚŽǁŶ ĂďŽǀĞ͘dŚĞŝƚLJŝƐĐƵƌƌĞŶƚůLJĂŶĂůLJnjŝŶŐŽƉƚŝŽŶƐƚŽƐĞĐƵƌĞ ƐƵĨĨŝĐŝĞŶƚ ƚƌĞĂƚŵĞŶƚ ĐĂƉĂĐŝƚLJ ƚŽ ƐĞĞ ƚŚĞ ŝƚLJ ƚŚƌŽƵŐŚ ďƵŝůĚŽƵƚ͘WĞƌƚŚĞϮϬϭϰtĂƐƚĞǁĂƚĞƌDĂƐƚĞƌWůĂŶ͕ƚŚĞ ŝƚLJǁŝůůŶĞĞĚĂƉƉƌŽdžŝŵĂƚĞůLJϮϵ͘ϴϵD';ŵŝůůŝŽŶŐĂůůŽŶƐ ƉĞƌ ĚĂLJͿ Ăƚ ďƵŝůĚ ŽƵƚ͘ ,ŽǁĞǀĞƌ͕ ƚŚĞ ĚƌŽƵŐŚƚ ƐƚĂƚĞ ŵĂŶĚĂƚĞĚǁĂƚĞƌƵƐĂŐĞĐƵƚƐĂŶĚƚŚĞƉƵďůŝĐĐŽŶƐĞƌǀĂƚŝŽŶ ƚƌĞŶĚƐǁŝůůƐƵďƐƚĂŶƚŝĂůůLJůŽǁĞƌƚŚĞŝƚLJ͛ƐƌĞƋƵŝƌĞĚƐĞǁĞƌ ƚƌĞĂƚŵĞŶƚ ĐĂƉĂĐŝƚLJ͘ dŚŝƐ ƚƌĞĂƚŵĞŶƚ ĐĂƉĂĐŝƚLJ ŵĂLJ ďĞ ƉƌŽǀŝĚĞĚ ďLJ ĞŝƚŚĞƌ ƉƵƌĐŚĂƐŝŶŐ ĂĚĚŝƚŝŽŶĂů ƚƌĞĂƚŵĞŶƚ ĐĂƉĂĐŝƚLJŝŶƚŚĞ^ĂŶŝĞŐŽDĞƚƌŽtĂƐƚĞǁĂƚĞƌ^LJƐƚĞŵŽƌ ĐŽŶƐƚƌƵĐƚŝŽŶŽĨĂǁĂƐƚĞǁĂƚĞƌƌĞĐůĂŵĂƚŝŽŶƉůĂŶƚŝŶ ŚƵůĂsŝƐƚĂ͘ dŚĞĨŽůůŽǁŝŶŐĨŝŐƵƌĞŝůůƵƐƚƌĂƚĞƐƚŚĞŝƚLJ͛ƐĐƵƌƌĞŶƚƚƌƵŶŬ ƐĞǁĞƌŶĞƚǁŽƌŬ͕ǁŚŝĐŚĐŽŶǀĞLJƐĨůŽǁƐƚŽƚŚĞ^ĂŶŝĞŐŽ DĞƚƌŽƚƌƵŶŬƐĞǁĞƌ;ƐŚŽǁŶŝŶƌĞĚͿ͘&ŽƌĞĨĨŝĐŝĞŶĐLJ͕ƐŽŵĞ ƐĞǁĞƌůŝŶĞƐĂƌĞƐŚĂƌĞĚďLJƚŚĞŽƵŶƚLJŽĨ^ĂŶŝĞŐŽ ;ŽƵŶƚLJͿ ĂŶĚ ƚŚĞ ŝƚLJ ƚŚƌŽƵŐŚ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ĂŐƌĞĞŵĞŶƚƐ͘ dŚĞ ŝƚLJ ŚĂƐ ĂŶ ĞdžŝƐƚŝŶŐ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ĂŐƌĞĞŵĞŶƚ ǁŝƚŚ ƚŚĞ ŽƵŶƚLJ ƚŽ ƵƐĞ ƚŚĞ ^ƉƌŝŶŐ sĂůůĞLJ dƌƵŶŬƐĞǁĞƌ;ƐŚŽǁŶŝŶŐƌĞĞŶͿ͘ŶĂĚĚŝƚŝŽŶĂů ƚƌĂŶƐƉŽƌƚĂƚŝŽŶĂŐƌĞĞŵĞŶƚŝƐĐƵƌƌĞŶƚůLJďĞŝŶŐƉƌŽĐĞƐƐĞĚ ƚŚĂƚǁŽƵůĚĂůůŽǁŽƵŶƚLJƐĞǁĞƌƚŽĨůŽǁƚŚƌŽƵŐŚƚŚĞ^Ăůƚ ƌĞĞŬƚƌƵŶŬ;^ŚŽǁŶŝŶĐLJĂŶͿĨƌŽŵƚŚĞŽƵŶƚLJ͛ƐsŝůůĂŐĞƐ ůŽĐĂƚĞĚƚŽƚŚĞĞĂƐƚŽĨƚŚĞŝƚLJ͘ ŝƚLJ͛ƐƵƌƌĞŶƚdƌƵŶŬ^ĞǁĞƌEĞƚǁŽƌŬ Z s Eh ^ dŚĞ^ĞǁĞƌ&ƵŶĚĚĞƌŝǀĞƐƚŚĞŵĂũŽƌŝƚLJŽĨŝƚƐƌĞǀĞŶƵĞ ĨƌŽŵǀĂƌŝŽƵƐƐĞƌǀŝĐĞĐŚĂƌŐĞƐƚŚĂƚĂƌĞĐŽůůĞĐƚĞĚĨƌŽŵ ƐLJƐƚĞŵ ƵƐĞƌƐ͘ dŚŝƐ ĨƵŶĚ ĂůƐŽ ĚĞƌŝǀĞƐ ƌĞǀĞŶƵĞƐ ĨƌŽŵ ŽƚŚĞƌƐŽƵƌĐĞƐƐƵĐŚĂƐƉĞƌŵŝƚĨĞĞƐĨŽƌŶĞǁĐŽŶŶĞĐƚŝŽŶƐ ƚŽ ƚŚĞ ƐĞǁĞƌ ƐLJƐƚĞŵ͕ ŝŶƚĞƌĞƐƚ ĞĂƌŶŝŶŐƐ ĨƌŽŵ ŝŶǀĞƐƚŵĞŶƚƐ͕ĚĞǀĞůŽƉŵĞŶƚŝŵƉĂĐƚĨĞĞƐ͕ƚƌĂŶƐĨĞƌƐĨƌŽŵ ŽƚŚĞƌ ĨƵŶĚƐ ĚĞƐŝŐŶĂƚĞĚ ƚŽ ƐƵƉƉŽƌƚ ^ĞǁĞƌ ĨƵŶĚ ŽƉĞƌĂƚŝŽŶƐ͘ KƚŚĞƌ ƌĞǀĞŶƵĞƐ ŝŶĐůƵĚĞ ƌĞǀĞŶƵĞ ƌĞŝŵďƵƌƐĞŵĞŶƚƐ ĨƌŽŵ ŽƚŚĞƌ ĐŝƚLJ ĨƵŶĚƐ ĂŶĚ ǀĂƌŝŽƵƐ ƐĞƌǀŝĐĞ ĐŚĂƌŐĞƐ͘ ^ĞǁĞƌ ƌĞǀĞŶƵĞƐ ĂƌĞ ƉƌŽũĞĐƚĞĚ ƚŽ ƌĞŵĂŝŶ ƚŚĞ ƐĂŵĞ ŝŶ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚ ƵĚŐĞƚ͘^ĞǁĞƌ&ƵŶĚƌĞǀĞŶƵĞƐĂƌĞƐƵŵŵĂƌŝnjĞĚŝŶƚŚĞ ĨŽůůŽǁŝŶŐƚĂďůĞ͗ 107 258 ʹͲͳͻ ^ĞǁĞƌ&ƵŶĚZĞǀĞŶƵĞƐ ĂƚĞŐŽƌLJ &zϮϬϭϴ KWd &zϮϬϭϵ WZKWK^ ŚĂŶŐĞйŚĂŶŐĞ >ŝĐĞŶƐĞƐĂŶĚWĞƌŵŝƚƐ ϰϬ͕ϬϬϬΨ ϰϬ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй hƐĞŽĨDŽŶĞLJΘWƌŽƉĞƌƚLJ ϱϭ͕ϳϮϲΨ ϱϭ͕ϳϮϲΨ ͲΨ Ϭ͘Ϭй ŚĂƌŐĞƐĨŽƌ^ĞƌǀŝĐĞƐ ϯϮ͕Ϯϯϭ͕ϭϵϵΨ ϯϮ͕Ϯϯϭ͕ϭϵϵΨ ͲΨ Ϭ͘Ϭй KƚŚĞƌZĞǀĞŶƵĞ ϰϭϱ͕ϬϬϬΨ ϰϭϱ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй dƌĂŶƐĨĞƌƐ/Ŷ ϭϱϬ͕ϬϬϬΨ ϭϱϬ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй dŽƚĂůZĞǀĞŶƵĞƐ ϯϮ͕ϴϴϳ͕ϵϮϱΨ ϯϮ͕ϴϴϳ͕ϵϮϱΨ ͲΨ Ϭ͘Ϭй EŽƚĞ͗ZĞǀĞŶƵĞĂŵŽƵŶƚƐŝŶĐůƵĚĞ^ĞǁĞƌKƉĞƌĂƚŝŶŐ&ƵŶĚƐ͗ϰϭϭ͕ϰϭϮ͕ϰϭϰ͕ĂŶĚϰϮϴ͘ yW E/dhZ ^ ^ĞǁĞƌ ĨƵŶĚ ŽƉĞƌĂƚŝŽŶƐ ĂŶĚ ĐĂƉŝƚĂů ƉƌŽŐƌĂŵŵŝŶŐ ĐŽŶƚĂŝŶƐ ŶŽ 'ĞŶĞƌĂů &ƵŶĚ ĐŽŶƚƌŝďƵƚŝŽŶ͘ ^ĞǁĞƌ ĨƵŶĚ ŽƉĞƌĂƚŝŽŶƐĂŶĚĐĂƉŝƚĂůƉƌŽŐƌĂŵŵŝŶŐĐŽƐƚƐĂƌĞŽĨĨƐĞƚ ďLJĨĞĞƐƉĂŝĚďLJƌĞƐŝĚĞŶƚŝĂůĂŶĚŶŽŶͲƌĞƐŝĚĞŶƚŝĂůƵƐĞƌƐ͘ /ŶĂĚĚŝƚŝŽŶ͕ŽƚŚĞƌƌĞǀĞŶƵĞƐŽƵƌĐĞƐŐĞŶĞƌĂƚĞĚǁŝƚŚŝŶ ƚŚĞ^ĞǁĞƌĨƵŶĚƚŚƌŽƵŐŚŶŽƌŵĂůŽƉĞƌĂƚŝŽŶƐƚŚĂƚĨƵŶĚ ϰϲ͘Ϭ ƉĞƌŵĂŶĞŶƚ ƉŽƐŝƚŝŽŶƐ ƚŚĂƚ ĂƌĞ ĐŽŶƚĂŝŶĞĚ ŝŶ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚ ƵĚŐĞƚ͘ ŚĂŶŐĞƐ ƚŽ ƚŚĞ ^ĞǁĞƌ&ƵŶĚWƌŽƉŽƐĞĚƵĚŐĞƚĨŽƌĨŝƐĐĂůLJĞĂƌϮϬϭϵĂƌĞ ĂƐĨŽůůŽǁƐ͗ xWĞƌƐŽŶŶĞů ^ĞƌǀŝĐĞƐ ʹ WĞƌƐŽŶŶĞů ƐĞƌǀŝĐĞƐ ŝŶ ƚŚĞ ĨŝƐĐĂůLJĞĂƌϮϬϭϵĂƌĞŝŶĐƌĞĂƐŝŶŐďLJΨϬ͘ϭŵŝůůŝŽŶ͘dŚŝƐ ŝŶĐƌĞĂƐĞƌĞƉƌĞƐĞŶƚƐƚŚĞĂŶŶƵĂůŝnjĞĚĐŽƐƚŽĨǁĂŐĞ ŝŶĐƌĞĂƐĞƐƉƌĞǀŝŽƵƐůLJĂƉƉƌŽǀĞĚďLJŝƚLJŽƵŶĐŝů͕ĂŶĚ ĂŶĞƐƚŝŵĂƚĞĚϮйǁĂŐĞŝŶĨůĂƚŝŽŶĨŽƌĂůůĞŵƉůŽLJĞĞ ŐƌŽƵƉƐŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϵ͘WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐĂůƐŽ ƌĞĨůĞĐƚƐĐŽƐƚŝŶĐƌĞĂƐĞƐŝŶtŽƌŬĞƌƐŽŵƉĞŶƐĂƚŝŽŶ ŚĂƌŐĞƐ͕ &ůĞdž ;ŵĞĚŝĐĂů ŝŶƐƵƌĂŶĐĞͿ͕ ĂŶĚ W Z^ ;ƌĞƚŝƌĞŵĞŶƚďĞŶĞĨŝƚƐͿ͘ x^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐʹ^ƵƉƉůŝĞƐĂŶĚƐĞƌǀŝĐĞƐĐŽƐƚƐ ĂƌĞ ĚĞĐƌĞĂƐŝŶŐ ďLJ ΨϬ͘Ϯ ŵŝůůŝŽŶ͘ dŚŝƐ ĚĞĐƌĞĂƐĞ ŝƐ ƉƌŝŵĂƌŝůLJĚƵĞƚŽƚŚĞƚƌĂŶƐĨĞƌŽĨ&ůĞĞƚDĂŝŶƚĞŶĂŶĐĞ ŚĂƌŐĞƐƚŽƚŚĞŶĞǁ/ŶƚĞƌŶĂů^ĞƌǀŝĐĞŚĂƌŐĞ ďƵĚŐĞƚĐĂƚĞŐŽƌLJ͘ xĂƉŝƚĂůʹ džƉĞŶƐĞƐĂƌĞĚĞĐƌĞĂƐŝŶŐďLJΨϬ͘ϬϲŵŝůůŝŽŶ ŝŶ ĐŽŵƉĂƌŝƐŽŶ ƚŽ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ͘ x/W WƌŽũĞĐƚ džƉĞŶĚŝƚƵƌĞƐ ʹ dŚĞ ƉƌŽƉŽƐĞĚ ĨŝƐĐĂů LJĞĂƌϮϬϭϵ/W džƉĞŶĚŝƚƵƌĞƐĂƌĞŝŶĐƌĞĂƐŝŶŐďLJΨϰ͘ϭ ŵŝůůŝŽŶĨŽƌĂŶƚŝĐŝƉĂƚĞĚƉƌŽũĞĐƚƐ͘ dŚĞ ŝƚLJ ĐŽŶƚŝŶƵĞƐ ƚŽ ĨŽĐƵƐ ŽŶ ŝƚƐ ŶŶƵĂů ^ĞǁĞƌ ZĞŚĂďŝůŝƚĂƚŝŽŶWƌŽŐƌĂŵ͕ǁŚŝĐŚĞdžƉĞŶĚƐĂƉƉƌŽdžŝŵĂƚĞůLJ Ψϭ͘Ϭ ŵŝůůŝŽŶ ƚŽ ΨϮ͘Ϭ ŵŝůůŝŽŶ ĂŶŶƵĂůůLJ ĨŽƌ ƚŚĞ ƌĞƉůĂĐĞŵĞŶƚ ĂŶĚ ƌĞŚĂďŝůŝƚĂƚŝŽŶ ŽĨ ƐĞǁĞƌ ƉŝƉĞƐ͕ ĐŽŶŶĞĐƚŝŽŶƐďĞƚǁĞĞŶƐĞǁĞƌŵĂŝŶƐĂŶĚůĂƚĞƌĂůƐ͕ĂĐĐĞƐƐ ƌŽĂĚƐ͕ ĂŶĚ ĂĐĐĞƐƐ ĐŽǀĞƌƐ͘ dŚĞ ŝƚLJ ĂůƐŽ ƵƚŝůŝnjĞƐ ƐƚĂŶĚĂƌĚŝnjĞĚ ĞǀĂůƵĂƚŝŽŶ ĂŶĚ ƌĂŶŬŝŶŐ ĐƌŝƚĞƌŝĂ ŝŶ ƚĞůĞǀŝƐŝŶŐ ĂŶĚ ĞǀĂůƵĂƚŝŶŐ ƚŚĞ ĐŽŶĚŝƚŝŽŶ ŽĨ ƐĞǁĞƌƐ ŝŶ ŽƌĚĞƌ ƚŽ ĞŶƐƵƌĞ ƚŚĂƚ ƚŚĞ ŵŽƐƚ ĐƌŝƚŝĐĂůůLJ ŝŵƉĂĐƚĞĚ ƐĞǁĞƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞŝƐƌĞƉůĂĐĞĚŽƌƌĞŚĂďŝůŝƚĂƚĞĚĨŝƌƐƚ͘ dŽĚĂƚĞ͕ƚŚĞĨƵŶĚƐĐŽůůĞĐƚĞĚĨƌŽŵŝƚLJ͛ƐƌĂƚĞƉĂLJĞƌƐ ŚĂǀĞ ďĞĞŶ ƐƵĨĨŝĐŝĞŶƚ ƚŽ ŵĂŝŶƚĂŝŶ ĂŶĚ ŽƉĞƌĂƚĞ ƚŚĞ ŝƚLJ͛ƐǁĂƐƚĞǁĂƚĞƌĐŽůůĞĐƚŝŽŶƐLJƐƚĞŵĂƐǁĞůůĂƐƚŽƉĂLJ ĨŽƌƚŚĞƚƌĞĂƚŵĞŶƚŽĨƚŚĞǁĂƐƚĞǁĂƚĞƌ͘ WŝĐƚƵƌĞĚĂďŽǀĞ͗WŽŝŶƚ>ŽŵĂdƌĞĂƚŵĞŶƚ&ĂĐŝůŝƚLJ /ŶŽƌĚĞƌƚŽĞŶƐƵƌĞƚŚĞĨƵƚƵƌĞĂĚĞƋƵĂĐLJŽĨƚŚĞƐĞǁĞƌ ĨƵŶĚƐ͕ƚŚĞŝƚLJŽƵŶĐŝůŚĂƐĂĚŽƉƚĞĚĂŶƵƉĚĂƚĞĚƐĞǁĞƌ ƌĂƚĞĐĂƐĞƐƚƵĚLJƚŚĂƚƐĞƚƚŚĞƐĞǁĞƌƌĂƚĞƐĨŽƌƚŚĞŶĞdžƚ ĨŝǀĞLJĞĂƌƐƚŚĂƚǁĞŶƚŝŶƚŽĞĨĨĞĐƚ:ƵůLJϮϬϭϰ͘KŶĞŽĨƚŚĞ ŝƐƐƵĞƐĐŽŶƐŝĚĞƌĞĚŽĨƐŝŐŶŝĨŝĐĂŶƚŝŵƉĂĐƚƚŽƚŚĞƐĞǁĞƌ ƌĂƚĞƐĨŽƌƚŚĞŝƚLJŝƐƚŚĞWŽŝŶƚ>ŽŵĂdƌĞĂƚŵĞŶƚWůĂŶƚ ;W>dWͿ^ĞĐŽŶĚĂƌLJdƌĞĂƚŵĞŶƚtĂŝǀĞƌ͘/ŶϮϬϭϬ͕ƚŚĞŝƚLJ 108 259 ʹͲͳͻ ŽĨ^ĂŶŝĞŐŽǁĂƐƐƵĐĐĞƐƐĨƵůŝŶŽďƚĂŝŶŝŶŐĂĨŝǀĞͲLJĞĂƌ ǁĂŝǀĞƌ ƚŚĂƚ ĂůůŽǁĞĚ ƚŚĞ ĐŽŶƚŝŶƵĞĚ ŽƉĞƌĂƚŝŽŶ ŽĨ ƚŚĞ W>dWĂƚĂŶĂĚǀĂŶĐĞƉƌŝŵĂƌLJůĞǀĞůŽĨƐĞǁĞƌƚƌĞĂƚŵĞŶƚ ďĞĨŽƌĞĚŝƐĐŚĂƌŐŝŶŐŝŶƚŽƚŚĞŽĐĞĂŶ͘dŚĞĂƉƉůŝĐĂƚŝŽŶĨŽƌ ƚŚĞůĂƐƚǁĂŝǀĞƌǁĂƐƐƵďŵŝƚƚĞĚŝŶϮϬϭϱ͘dŚĞtĂŝǀĞƌ ǁĂƐĂƉƉƌŽǀĞĚŝŶƉƌŝůϮϬϭϳďLJƚŚĞZtY;ƌĞŐŝŽŶĂů ǁĂƚĞƌƋƵĂůŝƚLJĐŽŶƚƌŽůďŽĂƌĚƐͿĂŶĚƚŚĞ WĂŶĚŝƐŶŽǁ ƌĞĂĚLJ ĨŽƌ ƚŚĞ ĐŽŶĐƵƌƌĞŶĐĞ ŚĞĂƌŝŶŐ ďLJ ƚŚĞ ĂůŝĨŽƌŶŝĂ ŽĂƐƚĂů ŽŵŵŝƐƐŝŽŶ͘ džƉĞŶƐŝǀĞ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ŝŶǀĞƐƚŵĞŶƚƐĂƌĞĞdžƉĞĐƚĞĚĂƐĂĐŽŶĚŝƚŝŽŶŽĨƚŚĞŶĞdžƚ ǁĂŝǀĞƌ͘ /ŶĨŝƐĐĂůLJĞĂƌϮϬϬϴƚŚĞŝƚLJƚƌĂŶƐŝƚŝŽŶĞĚŝƚƐ^ĞǁĞƌĨƵŶĚƐ ĨƌŽŵ ͚ƐƉĞĐŝĂů ƌĞǀĞŶƵĞ͛ ĨƵŶĚƐ ƚŽ ͚ĞŶƚĞƌƉƌŝƐĞ͛ ĨƵŶĚƐ͘ ŶƚĞƌƉƌŝƐĞĨƵŶĚƐŵĂLJďĞƵƐĞĚƚŽƌĞƉŽƌƚĂŶLJĂĐƚŝǀŝƚLJĨŽƌ ǁŚŝĐŚĂĨĞĞŝƐĐŚĂƌŐĞĚƚŽĞdžƚĞƌŶĂůƵƐĞƌƐĨŽƌŐŽŽĚƐŽƌ ƐĞƌǀŝĐĞƐ͕ ĂŶĚ ĂƌĞ ĂƉƉƌŽƉƌŝĂƚĞ ŝŶ ƐŝƚƵĂƚŝŽŶƐ ǁŚĞƌĞŝŶ ƚŚĞƌĞŝƐĞŝƚŚĞƌĂůĞŐĂůƌĞƋƵŝƌĞŵĞŶƚŽƌƉŽůŝĐLJĚĞĐŝƐŝŽŶƚŽ ƌĞĐŽǀĞƌĐŽƐƚƐŽĨƉƌŽǀŝĚŝŶŐƐĞƌǀŝĐĞƐĨŽƌĂŶĂĐƚŝǀŝƚLJ͘dŚŝƐ ĐŚĂŶŐĞĐŽŵƉůŝĞƐǁŝƚŚƚŚĞ'&KƌĞĐŽŵŵĞŶĚĞĚ ĂĐĐŽƵŶƚŝŶŐƐƚƌƵĐƚƵƌĞ͕ƐŚŽƵůĚƚŚĞŝƚLJĚĞĐŝĚĞƚŽŝƐƐƵĞ ďŽŶĚƐĨŽƌĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƐƐŽůĞůLJŐƵĂƌĂŶƚĞĞĚďLJ ƐĞǁĞƌĨĞĞƐĂŶĚĐŚĂƌŐĞƐŝŶƚŚĞĨƵƚƵƌĞ͘ ŝƚLJ ƐƚĂĨĨ ĞdžƉĞŶĚŝƚƵƌĞƐ ŝŶĐƵƌƌĞĚ ƐƵƉƉŽƌƚŝŶŐ ǁĂƐƚĞǁĂƚĞƌƐLJƐƚĞŵŵĂŝŶƚĞŶĂŶĐĞĂŶĚŽƉĞƌĂƚŝŽŶƐĂƌĞ ĨƵŶĚĞĚ ďLJ ƚŚĞ ^ĞǁĞƌ ^ĞƌǀŝĐĞ ĨƵŶĚ ƚŚƌŽƵŐŚ Ă ĐŽŵďŝŶĂƚŝŽŶ ŽĨ ĚŝƌĞĐƚ ĞdžƉĞŶĚŝƚƵƌĞƐ ĂŶĚ ŝŶƚĞƌͲĨƵŶĚ ƚƌĂŶƐĨĞƌƐ͘ WŽƐŝƚŝŽŶƐ ϭϬϬй ĨƵŶĚĞĚ ďLJ ^ĞǁĞƌ ĨƵŶĚƐ ;ǁĂƐƚĞǁĂƚĞƌ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ǁĂƐƚĞǁĂƚĞƌ ĞŶŐŝŶĞĞƌŝŶŐͿĂƌĞďƵĚŐĞƚĞĚĚŝƌĞĐƚůLJŝŶƚŚĞ^ĞǁĞƌĨƵŶĚ͘ dŚĞƌĞŵĂŝŶŝŶŐƐƵƉƉŽƌƚƐƚĂĨĨŝƐďƵĚŐĞƚĞĚŝŶĞŝƚŚĞƌƚŚĞ 'ĞŶĞƌĂů Žƌ ĞǀĞůŽƉŵĞŶƚ ^ĞƌǀŝĐĞƐ ĨƵŶĚƐ͘ dŚĞƐĞ ƉŽƐŝƚŝŽŶƐĂƌĞƉĂƌƚŝĂůůLJŽĨĨƐĞƚǀŝĂŝŶƚĞƌͲĨƵŶĚƚƌĂŶƐĨĞƌƐ͘ ůůƐƵƉƉůŝĞƐĂŶĚƐĞƌǀŝĐĞƐ͕ĐĂƉŝƚĂů͕ĂŶĚƵƚŝůŝƚŝĞƐďƵĚŐĞƚƐ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚƐƵƉƉŽƌƚŝŶŐƚŚĞǁĂƐƚĞǁĂƚĞƌƐLJƐƚĞŵĂƌĞ ĂůƐŽďƵĚŐĞƚĞĚŝŶƚŚĞ^ĞǁĞƌ^ĞƌǀŝĐĞĨƵŶĚŝŶĨŝƐĐĂůLJĞĂƌ ϮϬϭϵ͘ W/d>/DWZKs D EdWZK: d^ dŚĞƐĞĐŽŶĚŚŝŐŚĞƐƚĐŽŵŵŝƚŵĞŶƚŽĨ/WĨƵŶĚŝŶŐŝƐĨŽƌ ƚŚĞ tĂƐƚĞǁĂƚĞƌ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;tD^Ϳ͘ dŚĞ ĂƉƉƌŽƉƌŝĂƚŝŽŶĨŽƌtĂƐƚĞǁĂƚĞƌƉƌŽũĞĐƚƐŝƐΨϱ͘ϰϱŵŝůůŝŽŶ ǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐϭϴ͘ϭϯйŽĨƚŚĞĂĚŽƉƚĞĚ/WďƵĚŐĞƚ͘ dŚĞ tD^ ŝƐ ĚŝǀŝĚĞĚ ŝŶƚŽ ƚǁŽ ĐĂƚĞŐŽƌŝĞƐ͗ ^ĞǁĞƌ ZĞŚĂďŝůŝƚĂƚŝŽŶ Θ ^ƉĞĐŝĨŝĐ ^ĞǁĞƌ /ŵƉƌŽǀĞŵĞŶƚƐ͕ ĂŶĚ ^ĞǁĞƌWƵŵƉ^ƚĂƚŝŽŶƐΘĐĐĞƐƐZŽĂĚƐ͘ ^ĞǁĞƌZĞŚĂďŝůŝƚĂƚŝŽŶΘ^ƉĞĐŝĨŝĐ^ĞǁĞƌ/ŵƉƌŽǀĞŵĞŶƚƐ dŚĞĂŶŶƵĂů^ĞǁĞƌĂŶĚDĂŶŚŽůĞZĞŚĂďŝůŝƚĂƚŝŽŶƉƌŽũĞĐƚ ĐŽŵŵŝƚƐ ΨϬ͘ϴ ŵŝůůŝŽŶ ĨŽƌ ĐŝƚLJǁŝĚĞ ǁŽƌŬ͘ KĨ ƚŚŝƐ ĂŵŽƵŶƚ͕ ΨϬ͘ϯ ŵŝůůŝŽŶ ŝƐ ŝŶĐůƵĚĞĚ ƚŽ ĐŽŵƉůĞƚĞ ƐĞǁĞƌ ƉŝƉĞ ŝŵƉƌŽǀĞŵĞŶƚƐ Ăƚ ǀĂƌŝŽƵƐ ůŽĐĂƚŝŽŶƐ͘ &ƵŶĚŝŶŐ ŽĨ ΨϬ͘ϱŵŝůůŝŽŶŝƐŝŶĐůƵĚĞĚƚŽĐŽŵƉůĞƚĞƐĞǁĞƌŵĂŶŚŽůĞ ƌĞŚĂďŝůŝƚĂƚŝŽŶĞĨĨŽƌƚƐĐŝƚLJǁŝĚĞĂŶĚĐŽŶƚŝŶƵĞŵĂŶŚŽůĞ ŝŶƐƉĞĐƚŝŽŶƐƚŽĞƐƚĂďůŝƐŚĂďĂƐĞůŝŶĞĐŽŶĚŝƚŝŽŶŝŶŽƌĚĞƌ ƚŽƉƌĞƐĞƌǀĞĂŶĚĞdžƚĞŶĚƐĞƌǀŝĐĞůŝĨĞĂŶĚĂǀŽŝĚĨĂŝůƵƌĞƐ ŽĨĞdžŝƐƚŝŶŐƐƚƌƵĐƚƵƌĞƐ͘ ^ĞǁĞƌWƵŵƉ^ƚĂƚŝŽŶƐĂŶĚĐĐĞƐƐZŽĂĚƐ &ƵŶĚƐ ŽĨ ΨϮ͘ϳϱ ŵŝůůŝŽŶ ĂƌĞ ƉƌŽŐƌĂŵŵĞĚ ƚŽ ƵƉŐƌĂĚĞ ƚŚĞ ' ^ƚƌĞĞƚ WƵŵƉ ^ƚĂƚŝŽŶ ƚŽ ƉƌŽǀŝĚĞ ƐƵĨĨŝĐŝĞŶƚ ĞŵĞƌŐĞŶĐLJ ƐƚŽƌĂŐĞ ĨŽƌ ƚŚĞ ĂLJĨƌŽŶƚ͘ DŽƌĞ ƚŚĂŶ Ψϭ ŵŝůůŝŽŶ ŝƐ ŝŶĐůƵĚĞĚ ƚŽ ĐŽŵƉůĞƚĞ ƵƉŐƌĂĚĞƐ ƚŽ ƚŚĞ WĂƌŬƐŝĚĞƌŝǀĞ>ŝĨƚ^ƚĂƚŝŽŶ͘ƚŽƚĂůŽĨΨϬ͘ϱŵŝůůŝŽŶŝƐ ƉƌŽŐƌĂŵŵĞĚ ƚŽ ĐŽŵƉůĞƚĞ ŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽ ƚŚĞ : ^ƚƌĞĞƚ^ĞǁĞƌ:ƵŶĐƚŝŽŶ^ƚƌƵĐƚƵƌĞ͘^ĞǁĞƌĂĐĐĞƐƐƌŽĂĚƐĂƚ ǀĂƌŝŽƵƐůŽĐĂƚŝŽŶƐǁŝůůďĞƌĞŚĂďŝůŝƚĂƚĞĚ͕ĂƚĂĐŽƐƚŽĨΨϬ͘ϯ ŵŝůůŝŽŶ͘ ^ĞǁĞƌ&ƵŶĚĞdžƉĞŶĚŝƚƵƌĞƐĂƌĞƐƵŵŵĂƌŝnjĞĚŝŶƚŚĞƚĂďůĞ ŽŶƚŚĞĨŽůůŽǁŝŶŐƉĂŐĞ͘ 109 260 ʹͲͳͻ ^ĞǁĞƌ&ƵŶĚ džƉĞŶĚŝƚƵƌĞƐ ĂƚĞŐŽƌLJ &zϮϬϭϴ KWd &zϮϬϭϵ WZKWK^ ŚĂŶŐĞ йŚĂŶŐĞ WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐ ϰ͕ϴϭϴ͕ϵϯϰΨ ϰ͕ϵϵϲ͕ϳϮϴΨ ϭϳϳ͕ϳϵϰΨ ϯ͘ϳй ^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐ Ϯϴ͕ϯϳϵ͕ϴϭϬΨ Ϯϴ͕ϬϵϮ͕ϮϯϯΨ ;Ϯϴϳ͕ϱϳϳͿΨ Ͳϭ͘Ϭй KƚŚĞƌ džƉĞŶƐĞƐ ϳϱ͕ϬϬϬΨ ϳϱ͕ϬϬϬΨ ͲΨ Ϭ͘Ϭй ĂƉŝƚĂů ϭ͕ϰϬϵ͕ϮϬϬΨ ϭ͕ϯϰϵ͕ϮϬϬΨ ;ϲϬ͕ϬϬϬͿΨ Ͳϰ͘ϯй hƚŝůŝƚŝĞƐ ϯϯϭΨ ϯϯϭΨ ͲΨ Ϭ͘Ϭй /ŶƚĞƌŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐ ͲΨ ϯϭϲ͕ϳϬϱΨ ϯϭϲ͕ϳϬϱΨ ϭϬϬ͘Ϭй dƌĂŶƐĨĞƌƐKƵƚ ϯ͕ϯϬϯ͕ϮϯϰΨ ϯ͕ϰϰϴ͕ϮϯϰΨ ϭϰϱ͕ϬϬϬΨ ϰ͘ϰй /WWƌŽũĞĐƚ džƉĞŶĚŝƚƵƌĞƐ ϭ͕ϯϯϬ͕ϬϬϬΨ ϱ͕ϰϴϬ͕ϬϬϬΨ ϰ͕ϭϱϬ͕ϬϬϬΨ ϯϭϮ͘Ϭй EŽŶͲ/WWƌŽũĞĐƚ džƉĞŶĚŝƚƵƌĞƐ ͲΨ ϲϰ͕ϲϬϬΨ ϲϰ͕ϲϬϬΨ ϭϬϬ͘Ϭй dŽƚĂů džƉĞŶĚŝƚƵƌĞƐ ϯϵ͕ϯϭϲ͕ϱϬϵΨ ϰϯ͕ϴϮϯ͕ϬϯϭΨ ϰ͕ϱϬϲ͕ϱϮϮΨ ϭϭ͘ϱй EŽƚĞ͗ džƉĞŶĚŝƚƵƌĞĂŵŽƵŶƚƐŝŶĐůƵĚĞ^ĞǁĞƌKƉĞƌĂƚŝŶŐ&ƵŶĚƐ͗ϰϭϭ͕ϰϭϮ͕ϰϭϰ͕ĂŶĚϰϮϴ͘ &hE ^Z/Wd/KE^ x&ƵŶĚϰϭϭ͗^ĞǁĞƌ/ŶĐŽŵĞ&ƵŶĚ dŚŝƐ ĨƵŶĚ ŝƐ ƵƐĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ Ăůů ƌĞǀĞŶƵĞƐ ĐŽůůĞĐƚĞĚ ƚŽ ƌĞĐŽǀĞƌ ƚŚĞ ŝƚLJ͛Ɛ ĐŽƐƚƐ ŝŶĐƵƌƌĞĚ ĐŽŶƐƚƌƵĐƚŝŶŐ ƚŚĞ ƉƵďůŝĐ ǁĂƐƚĞǁĂƚĞƌ ƐLJƐƚĞŵ͘ dŚĞ ĨƵŶĚƐĂƌĞĐŽůůĞĐƚĞĚĨƌŽŵŶĞǁƉƌŽƉĞƌƚŝĞƐƌĞĐĞŝǀŝŶŐ Ă ƉĞƌŵŝƚ ƚŽ ĐŽŶŶĞĐƚ ƚŽ ƚŚĞ ŝƚLJ͛Ɛ ǁĂƐƚĞǁĂƚĞƌ ĐŽůůĞĐƚŝŽŶ ƐLJƐƚĞŵ͘ dŚĞ ŽǁŶĞƌ Žƌ ƉĞƌƐŽŶ ŵĂŬŝŶŐ ƚŚĞ ĂƉƉůŝĐĂƚŝŽŶ ĨŽƌ ĐŽŶŶĞĐƚŝŽŶ ƉĂLJƐ ĨĞĞƐ ƚŽ ƚŚĞ ŝƚLJĂƐĚĞƐŝŐŶĂƚĞĚŝŶƚŚĞŵĂƐƚĞƌĨĞĞƐĐŚĞĚƵůĞ͘ůů ĨƵŶĚƐ ƌĞĐĞŝǀĞĚ ŵĂLJ ďĞ ƵƐĞĚ ŽŶůLJ ĨŽƌ ƚŚĞ ĂĐƋƵŝƐŝƚŝŽŶ͕ ĐŽŶƐƚƌƵĐƚŝŽŶ͕ ƌĞĐŽŶƐƚƌƵĐƚŝŽŶ͕ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ŽƉĞƌĂƚŝŽŶ ŽĨ ƐĂŶŝƚĂƚŝŽŶ Žƌ ƐĞǁĞƌĂŐĞĨĂĐŝůŝƚŝĞƐ͕ŽƌƚŽƌĞŝŵďƵƌƐĞĂƐƵďĚŝǀŝĚĞƌ ŽƌĂŶLJƉĞƌƐŽŶǁŚŽŚĂƐĐŽŶƐƚƌƵĐƚĞĚƐĞǁĞƌĨĂĐŝůŝƚŝĞƐ ďĞŶĞĨŝƚŝŶŐŽƚŚĞƌƉƌŽƉĞƌƚŝĞƐ͘dŚĞĨƵŶĚŵĂLJĂůƐŽďĞ ƵƐĞĚƚŽƌĞŝŵďƵƌƐĞƚŚĞŝƚLJĨŽƌĂŶLJĞdžƉĞŶƐĞ ŝŶĐƵƌƌĞĚŝŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚƚŚĞĐŽŶƐƚƌƵĐƚŝŽŶĂŶĚ ŝŶƐƚĂůůĂƚŝŽŶ ŽĨ ĂŶLJ ƐĞǁĞƌ ĨĂĐŝůŝƚLJ ŝŶĐůƵĚŝŶŐ ĞŶŐŝŶĞĞƌŝŶŐǁŽƌŬĂŶĚĂĐƋƵŝƐŝƚŝŽŶŽĨƌŝŐŚƚƐͲŽĨͲǁĂLJ͘ x&ƵŶĚϰϭϮ͗^ƉĞĐŝĂů^ĞǁĞƌ&ƵŶĚ dŚĞ^ƉĞĐŝĂů^ĞǁĞƌ&ƵŶĚŝƐƵƐĞĚƚŽĂĐĐŽƵŶƚĨŽƌƚŚĞ ƐĂůĞ ŽĨ ƚŚĞ ŝƚLJ͛ƐĞdžĐĞƐƐ DĞƚƌŽƉŽůŝƚĂŶ ^ĞǁĞƌĂŐĞ ĐĂƉĂĐŝƚLJ͘KŶĞĐĞŵďĞƌϭϳ͕ϮϬϭϯŽƵŶĐŝůĂƉƉƌŽǀĞĚ ĐůŽƐŝŶŐƚŚŝƐĨƵŶĚ͘ x&ƵŶĚϰϭϰ͗^ĞǁĞƌ^ĞƌǀŝĐĞZĞǀĞŶƵĞ&ƵŶĚ dŚĞ ^ĞǁĞƌ ^ĞƌǀŝĐĞ ZĞǀĞŶƵĞ &ƵŶĚ ŝƐ ƵƐĞĚ ƚŽ ĂĐĐŽƵŶƚĨŽƌĂůůŵŽŶŝĞƐĐŽůůĞĐƚĞĚĨƌŽŵƚŚĞŵŽŶƚŚůLJ ƐĞǁĞƌƐĞƌǀŝĐĞĐŚĂƌŐĞ͘DŽŶŝĞƐŝŶƚŚŝƐĨƵŶĚŵĂLJďĞ ƵƐĞĚĨŽƌĂŶLJĂŶĚĂůůƐĞǁĞƌƌĞůĂƚĞĚĂĐƚŝǀŝƚŝĞƐ͘dŚĞ ƉƌŝŵĂƌLJƵƐĞŽĨƚŚĞƐĞĨƵŶĚƐŝƐƚŚĞƉĂLJŵĞŶƚŽĨƚŚĞ ŝƚLJ͛Ɛ ĂŶŶƵĂů ^ĂŶ ŝĞŐŽ DĞƚƌŽƉŽůŝƚĂŶ ^ĞǁĞƌ ĂƉĂĐŝƚLJ ĂŶĚ DĂŝŶƚĞŶĂŶĐĞ ĨĞĞƐ ĂŶĚ ƚŽ ƉĂLJ ƚŚĞ ŽƉĞƌĂƚŝŽŶĂůĐŽƐƚƐŽĨƚŚĞ͚ŝŶͲĐŝƚLJ͛ƐĞǁĞƌĐŽůůĞĐƚŝŽŶ ƐLJƐƚĞŵ͘ x&ƵŶĚϰϮϴ͗^ĞǁĞƌ&ĂĐŝůŝƚLJZĞƉůĂĐĞŵĞŶƚ&ƵŶĚ ƉŽƌƚŝŽŶ ŽĨ ƚŚĞ ƌĞǀĞŶƵĞƐ ĚĞƌŝǀĞĚ ĨƌŽŵ ƚŚĞ ŵŽŶƚŚůLJ ƐĞǁĞƌ ƐĞƌǀŝĐĞ ĐŚĂƌŐĞ ŝƐ ĚĞƉŽƐŝƚĞĚ ŝŶƚŽ ƚŚĞ ^ĞǁĞƌĂŐĞ &ĂĐŝůŝƚŝĞƐ ZĞƉůĂĐĞŵĞŶƚ &ƵŶĚ͘ DŽŶŝĞƐ ŝŶ ƚŚŝƐ ĨƵŶĚ ĂƌĞ ƵƐĞĚ ƐŽůĞůLJ ĨŽƌ ƚŚĞ ƉƵƌƉŽƐĞ ŽĨ ƉĂLJŝŶŐ ƚŚĞ ĐŽƐƚ ŽĨ ƌĞĨƵƌďŝƐŚŵĞŶƚ ĂŶĚͬŽƌ ƌĞƉůĂĐĞŵĞŶƚ ŽĨ ƐƚƌƵĐƚƵƌĂůůLJ ĚĞĨŝĐŝĞŶƚ ƐĞǁĞƌĂŐĞ ĨĂĐŝůŝƚŝĞƐ ŝŶĐůƵĚŝŶŐ ƌĞůĂƚĞĚ ĞǀĂůƵĂƚŝŽŶ͕ ĞŶŐŝŶĞĞƌŝŶŐ͕ĂŶĚƵƚŝůŝƚLJŵŽĚŝĨŝĐĂƚŝŽŶĐŽƐƚƐ͘ dŚĞ ŝƚLJ ŽƵŶĐŝů ĐĂŶ ĂƉƉƌŽƉƌŝĂƚĞ ƚŚĞ ĨƵŶĚƐ ĨŽƌ ĂŶŽƚŚĞƌƉƵƌƉŽƐĞƉƌŽǀŝĚĞĚƐƵĐŚƉƵƌƉŽƐĞŝƐĨŽƌƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ͕ ŵĂŝŶƚĞŶĂŶĐĞ͕ Žƌ ŽƉĞƌĂƚŝŽŶ ŽĨ ƐĞǁĞƌƐŽƌŝŶĐŝĚĞŶƚĂůƚŚĞƌĞƚŽ͕ŝŶĐůƵĚŝŶŐĂŶLJĐŚĂƌŐĞ ĨŽƌŝƚƐĐŽůůĞĐƚŝŽŶ͘ x&ƵŶĚƐϰϯϬ͗^ĞǁĞƌĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ&ƵŶĚƐ dŚĞƐĞĨĞĞƐĂƌĞůĞǀŝĞĚĂŐĂŝŶƐƚŶĞǁĚĞǀĞůŽƉŵĞŶƚŝŶ ƐƉĞĐŝĨŝĐĂƌĞĂƐŽĨƚŚĞŝƚLJ͕ďĂƐĞĚƵƉŽŶƚŚĞƐĞǁĞƌ ĨĂĐŝůŝƚLJ ƚŚĞŝƌ ƉƌŽũĞĐƚ ǁŝůů ŝŵƉĂĐƚ͘ dŚĞ ŵŽŶŝĞƐ ĐŽůůĞĐƚĞĚĂƌĞƵƐĞĚƚŽĨƵŶĚĐŽŶƐƚƌƵĐƚŝŽŶŽĨƉƵďůŝĐ ŝŵƉƌŽǀĞŵĞŶƚƐĚĞƐŝŐŶĞĚƚŽŝŶĐƌĞĂƐĞƚŚĞĐĂƉĂĐŝƚLJ ŽĨ ƚŚĞ ƐƵďũĞĐƚ ĨĂĐŝůŝƚŝĞƐ͕ ĂůůŽǁŝŶŐ ƚŚĞ ŝƚLJ ƚŽ ŵĂŝŶƚĂŝŶƐĞƌǀŝĐĞůĞǀĞůƐǁŝƚŚŝŶĐƌĞĂƐĞĚĚĞŵĂŶĚ͘ 110 261 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 5,200,372 4,639,368 4,818,934 4,996,728 Supplies & Services 19,461,792 21,085,079 28,379,810 28,092,233 Other Expenses 353,655 902,204 75,000 75,000 Other Capital 17,679 - 1,409,200 1,349,200 Utilities 265 250 331 331 Internal Service Charges - - - 316,705 Transfers Out 3,092,522 3,530,608 3,303,234 3,448,234 CIP Project Expenditures (2,597,576) (37,936) 1,330,000 5,480,000 Non-CIP Project Expenditures - 47,878 - 64,600 TOTAL EXPENDITURES 25,528,709$ 30,167,451$ 39,316,509$ 43,823,031$ REVENUES Licenses & Permits (40,502) (38,756) (40,000) (40,000) Use of Money and Property (773,752) (285,859) (51,726) (51,726) Charges for Services (33,216,767) (33,813,880) (32,231,199) (32,231,199) Other Revenue (891,633) (1,324,598) (415,000) (415,000) Transfers In (476,596) (150,349) (150,000) (150,000) TOTAL REVENUES (35,399,250)$ (35,613,442)$ (32,887,925)$ (32,887,925)$ NET PROGRAM EXPENDITURES (9,870,541)$ (5,445,991)$ 6,428,584$ 10,935,106$ BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 411-Sewer Income 1,471 1,884 - 2,000,000 412-Special Sewer - - - - 414-Sewer Service Revenue 27,961,996 29,963,007 37,866,509 38,973,031 428-Sewer Facility Replacement (2,434,758) 202,560 1,450,000 2,850,000 TOTAL EXPENDITURES 25,528,709$ 30,167,451$ 39,316,509$ 43,823,031$ REVENUES 411-Sewer Income (35,324) (6,705) - - 412-Special Sewer (4) (5) - - 414-Sewer Service Revenue (33,107,865) (34,105,570) (31,431,199) (31,431,199) 428-Sewer Facility Replacement (2,256,057) (1,501,162) (1,456,726) (1,456,726) TOTAL REVENUES (35,399,250)$ (35,613,442)$ (32,887,925)$ (32,887,925)$ NET PROGRAM EXPENDITURES (9,870,541)$ (5,445,991)$ 6,428,584$ 10,935,106$ ȋͶͳͳǦͶʹͺȌ ȋͶͳͳǦͶʹͺȌ 111 262 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 20,731 20,464 100,000 - Other Expenses 5,425,521 5,493,386 432,000 455,000 Transfers Out 7,587,600 22,627 200,000 200,000 CIP Project Expenditures (1,543,797) 3,135 - - Non-CIP Project Expenditures 1,139,787 - - - TOTAL EXPENDITURES 12,629,842$ 5,539,612$ 732,000$ 655,000$ REVENUES Use of Money and Property (576,497) (155,028) (250,000) (227,000) Charges for Services (2,338,605) (2,320,644) (1,400,000) (1,400,000) Other Revenue (306,884) - - - Transfers In (7,964,912) (22,627) (200,000) (200,000) TOTAL REVENUES (11,186,898)$ (2,498,299)$ (1,850,000)$ (1,827,000)$ NET PROGRAM EXPENDITURES 1,442,944$ 3,041,313$ (1,118,000)$ (1,172,000)$ ȋͶ͵ͲȌ 112 263 ʹͲͳͻ 113 264 114 265 ʹͲͳͻ dŚĞ &ůĞĞƚ &ƵŶĚ ŝƐ ĂŶ ŝŶƚĞƌŶĂů ƐĞƌǀŝĐĞ ĨƵŶĚǁŚŝĐŚ ůŝŬĞ ŽƚŚĞƌ ŝŶƚĞƌŶĂů ƐĞƌǀŝĐĞ ĨƵŶĚƐ ŝƐ ƵƐĞĚ ƚŽ ĨŝŶĂŶĐĞ ĂŶĚ ĂĐĐŽƵŶƚĨŽƌŐŽŽĚƐ͕ƐƉĞĐŝĂůĂĐƚŝǀŝƚŝĞƐ͕ĂŶĚƐĞƌǀŝĐĞƐ ƉĞƌĨŽƌŵĞĚ ďLJ ŽŶĞ ŝƚLJ ĚĞƉĂƌƚŵĞŶƚ 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ǁŝƚŚŝŶ Ă ĚĞƉĂƌƚŵĞŶƚ ĂŶĚ ŝŶĐůƵĚĞ ĐŽƐƚƐ ƌĂŶŐŝŶŐ ĨƌŽŵ ƌŽƵƚŝŶĞ ;Žŝů ĐŚĂŶŐĞƐ͕ ƉƌĞǀĞŶƚŝǀĞŵĂŝŶƚĞŶĂŶĐĞͿƚŽŵĂũŽƌ;ƚƌĂŶƐŵŝƐƐŝŽŶƌĞƉĂŝƌͿ ĂƐǁĞůůĂƐĨƵĞůĐŽƐƚƐ͘DŽƐƚǀĞŚŝĐůĞƌĞƉůĂĐĞŵĞŶƚĐŽƐƚƐ ǁŝůů ďĞ ĨƵŶĚĞĚ ďLJ DĞĂƐƵƌĞ W ƐĂůĞƐ ƚĂdž ƌĞǀĞŶƵĞƐ͘ ƉƉƌŽdžŝŵĂƚĞůLJΨϱ͘ϲŵŝůůŝŽŶŝƐĂůůŽĐĂƚĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌ ϮϬϭϵ WƌŽƉŽƐĞĚƵĚŐĞƚ ĨŽƌ ƚŚĞ ƌĞƉůĂĐĞŵĞŶƚ ŽĨ ƉƵďůŝĐ ƐĂĨĞƚLJ ĂŶĚ ŶŽŶͲƉƵďůŝĐ ƐĂĨĞƚLJ ǀĞŚŝĐůĞƐ ǁŝƚŚŝŶ ƚŚĞ DĞĂƐƵƌĞW&ƵŶĚ͘ ĨĨŝĐŝĞŶĐŝĞƐĂƌĞĞdžƉĞĐƚĞĚĂƐĂƌĞƐƵůƚŽĨ ƚŚĞ ƉƵƌĐŚĂƐĞ ŽĨ ŶĞǁ ǀĞŚŝĐůĞƐ ĂƐ ƚŚŝƐ ŝƐ ƉƌŽũĞĐƚĞĚ ƚŽ ƌĞƐƵůƚ ŝŶ Ă ŐƌĞĂƚĞƌ ĨŽĐƵƐ ŽŶ ƉƌĞǀĞŶƚŝǀĞ ŵĂŝŶƚĞŶĂŶĐĞ ĂĐƚŝǀŝƚŝĞƐƵŶĚĞƌƚĂŬĞŶďLJĨůĞĞƚŵĂŝŶƚĞŶĂŶĐĞƐƚĂĨĨŝŶƐƚĞĂĚ ŽĨƵŶĚĞƌƚĂŬŝŶŐĐŽƐƚůŝĞƌŵĂũŽƌƌĞƉĂŝƌǁŽƌŬŽŶƚŚĞĐŝƚLJ͛Ɛ ĨůĞĞƚ͘ &ŽƌĨŝƐĐĂůLJĞĂƌϮϬϭϵ͕ƚŚĞƉƌŽƉŽƐĞĚƌĞǀĞŶƵĞďƵĚŐĞƚĨŽƌ ƚŚĞ &ůĞĞƚ &ƵŶĚ ŝƐ Ψϯ͘ϰ ŵŝůůŝŽŶ͘ dŚŝƐ ƌĞƉƌĞƐĞŶƚƐ Ă ŶĞƚ ĚĞĐƌĞĂƐĞ ŽĨ ΨϬ͘Ϭϴ ŵŝůůŝŽŶ ŽǀĞƌ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ͘ dŚĞ ŵĂũŽƌ ƌĞǀĞŶƵĞ ĐŚĂŶŐĞƐ ĂƌĞ ĂƐ ĨŽůůŽǁƐ͗ xdƌĂŶƐĨĞƌƐ /Ŷ Ͳ ĚĞĐƌĞĂƐĞ ŽĨ ΨϬ͘Ϭϵ ŵŝůůŝŽŶ ŝƐ ĂƚƚƌŝďƵƚĞĚ ƚŽ ƚŚĞ ĐŽƌƌĞĐƚŝŽŶ ŽĨ Ă &ŝƐĐĂů KĨĨŝĐĞ ^ƉĞĐŝĂůŝƐƚƉŽƐŝƚŝŽŶƚŚĂƚŝƐďĞŝŶŐƚƌĂŶƐĨĞƌƌĞĚƚŽ 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ƐĞƌǀŝĐĞƐ ĐŽƐƚƐ͘ dŚŝƐ ĐŚĂŶŐĞ ƌĞĨůĞĐƚƐƚŚĞƚƌĂŶƐĨĞƌŽĨϭ͘ϬϬĨŝƐĐĂůŽĨĨŝĐĞƐƉĞĐŝĂůŝƐƚƚŽ WƵďůŝĐtŽƌŬƐ͘dŚĞƌĞĚƵĐƚŝŽŶǁĂƐŽĨĨƐĞƚďLJĂŶ ŝŶĐƌĞĂƐĞŝŶƐĂůĂƌŝĞƐĚƵĞƚŽƚŚĞĞƐƚŝŵĂƚĞĚϮйǁĂŐĞ ŝŶĨůĂƚŝŽŶĂŶĚŝŶĐƌĞĂƐĞƐŝŶƌĞƚŝƌĞŵĞŶƚĐŽƐƚƐ͘ x^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐʹdŚĞĐĂƚĞŐŽƌLJŝƐĚĞĐƌĞĂƐŝŶŐ ďLJΨϬ͘ϬϳŵŝůůŝŽŶĨƌŽŵƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϴĚŽƉƚĞĚ ƵĚŐĞƚĚƵĞƚŽƌĞĚƵĐĞĚĨůĞĞƚŵĂŝŶƚĞŶĂŶĐĞĞdžƉĞŶƐĞƐ ĂŶĚ ƚŚĞ ƚƌĂŶƐĨĞƌ ŽĨ ĐŚĂƌŐĞƐ ƚŽ ƚŚĞ ŶĞǁ ŝŶƚĞƌŶĂů ƐĞƌǀŝĐĞĐŚĂƌŐĞƐĐĂƚĞŐŽƌLJ͘ x/ŶƚĞƌŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐʹdŚŝƐŝƐĂŶĞǁĐĂƚĞŐŽƌLJ ĐƌĞĂƚĞĚ ĨŽƌ ĞdžƉĞŶƐĞƐ ƉƌŽǀŝĚĞĚ ďLJ ŽƚŚĞƌ ĚĞƉĂƌƚŵĞŶƚƐ͘ dŚĞƐĞ ĞdžƉĞŶƐĞƐ ǁĞƌĞ ƉƌĞǀŝŽƵƐůLJ ŝŶĐůƵĚĞĚƵŶĚĞƌƚŚĞƐƵƉƉůŝĞƐĂŶĚƐĞƌǀŝĐĞƐĐĂƚĞŐŽƌLJ͘ &ůĞĞƚ&ƵŶĚ džƉĞŶĚŝƚƵƌĞƐ d 'KZz &zϮϬϭϴ KWd &zϮϬϭϵ WZKWK^ ,E' й,E' WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐ ϭ͕ϬϭϮ͕ϬϳϵΨ ϵϴϮ͕ϲϱϯΨ ;Ϯϵ͕ϰϮϲͿΨ ͲϮ͘ϵй ^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐ Ϯ͕ϯϲϬ͕ϵϳϰΨ Ϯ͕Ϯϴϴ͕ϵϰϱΨ ;ϳϮ͕ϬϮϵͿΨ Ͳϯ͘ϭй KƚŚĞƌ džƉĞŶƐĞƐ ϰϬϬΨ ϰϬϬΨ ͲΨ Ϭ͘Ϭй hƚŝůŝƚŝĞƐ ϭϯϭ͕ϬϵϬΨ ϭϯϭ͕ϬϵϬΨ ͲΨ Ϭ͘Ϭй /ŶƚĞƌŶĂů^ĞƌǀŝĐĞŚĂƌŐĞƐ ͲΨ Ϯϭ͕ϳϰϴΨ Ϯϭ͕ϳϰϴΨ ϭϬϬ͘Ϭй dŽƚĂů ϯ͕ϱϬϰ͕ϱϰϯΨ ϯ͕ϰϮϰ͕ϴϯϲΨ ;ϳϵ͕ϳϬϳͿΨͲϮ͘ϯй 116 267 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 1,234,111 1,042,166 1,012,079 982,653 Supplies & Services 2,255,155 2,001,642 2,360,974 2,288,945 Other Expenses - - 400 400 Utilities 73,785 86,212 131,090 131,090 Internal Service Charges - - - 21,748 TOTAL EXPENDITURES 3,563,051$ 3,130,020$ 3,504,543$ 3,424,835$ REVENUES Charges for Services (67,419) (97,624) (35,000) (35,000) Other Revenue (3,456,262) (3,131,090) (3,384,276) (3,389,835) Transfers In - - (85,267) - TOTAL REVENUES (3,523,681)$ (3,228,714)$ (3,504,543)$ (3,424,835)$ NET FUND ACTIVITY 39,370$ (98,694)$ -$ -$ ȋ͵ͻͳȌ 117 268 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 415 409 - - Other Expenses 329,851 393,291 - - Other Capital 180,037 1,049 - - TOTAL EXPENDITURES 510,303$ 394,749$ -$ -$ REVENUES Use of Money and Property (18,631) (18,668) - - Other Revenue (270,825) (14,999) - - Transfers In (340,035) - - - TOTAL REVENUES (629,491)$ (33,667)$ -$ -$ NET FUND ACTIVITY (119,188)$ 361,082$ -$ -$ ȋ͵ͻʹȌ 118 269 ʹͲͳͻ 119 270 120 271 FY2019 City of Chula Vista Proposed Budget Capital Projects Funds account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds. ASSESSMENT DISTRICT IMPROVEMENT FUNDS These funds were established as depositories for monies received from issuance of bonds for various assessment districts. The monies are used to finance the construction of public works improvements in the related districts. Included in this group are funds 501 through 518. DEVELOPMENT IMPACT FEES (DIF) These funds were established as depositories for various development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth. Included in this group are the following funds: x Fund 542: Drainage Development Impact Fee This fee is levied against new development in specific areas of the City, based upon the drainage facility their project will generate an impact on. The monies collected are used to fund construction of public improvements designed to increase the capacity of the subject facilities, allowing the City to maintain service levels with increased demand. x Funds 560: Public Facilities Development Impact Fees The Public Facilities Development Impact Fee (PFDIF) is levied against new development throughout the City to mitigate the impacts of growth on the City’s public services. The monies collected are used in the construction of new, and renovation of existing, public facilities. x Fund 580: Pedestrian Bridge DIF The Otay Ranch Pedestrian Bridge DIF is levied against all new development in Otay Ranch Villages 1, 2, 5, 6, and 11 to fund the construction of pedestrian bridge improvements, as necessitated by growth in these villages. x Fund 590: Transportation Development Impact Fee The Transportation Development Impact Fee (TDIF) is levied against all new development in the City to fund the construction of transportation improvements, as necessitated by growth in the City. OTHER TRANSPORTATION FUNDS Included as a part of this group are the following: x Fund 723: Bicycle Facilities This fund is a depository for local Transportation Development Act funds, Article 3.0, received from the County for bicycle related programs. x Fund 725: Industrial Development Authority The Industrial Development Authority (IDA) is a conduit-issuer of bonds, formed in February 1982 (Ordinance 1970) by the City of Chula Vista City Council. The IDA enables bonds to be issued with a tax-exempt status, but does not pledge City funds to repay the bond issues. The City can issue and sell bonds to provide financial assistance that has a public benefit for the acquisition, construction and installation of facilities for industrial, commercial, business or public utility purposes. x Fund 735: Transportation Partnership This fund is a depository for the revenues received from the State and Local Transportation Partnership Program. Funds must be spent on street purposes. x Fund 736: Other Transportation Programs This fund accounts for other miscellaneous Federal and State transportation grants received by the City. x Fund 741: Proposition 1B Highway Safety This fund is a depository for revenues received from the State government under Proposition 1B (The Highway Safety, Traffic Reduction, Air Quality, and Port Security Act), as approved by voters in the November 2006 general election. Funds must be spent on street purposes. 121 272 FY2019 City of Chula Vista Proposed Budget MISCELLANEOUS CAPITAL IMPROVEMENT PROGRAM FUNDS Included as part of this group are the following: x Fund 713: Capital Improvement Fund The Capital Improvement Fund is used to account for general purpose capital projects funded primarily from General Fund. Funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City. x Fund 715: Park Acquisition and Development (East) This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivision east of the 805. These funds are collected pursuant to Chapter 17.10 of the Chula Vista Municipal Code, in accordance with authority granted by Section 66477 of the California Government Code. x Fund 716: Park Acquisition and Development (West) This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivision west of the 805. These funds are collected pursuant to Chapter 17.10 of the Chula Vista Municipal Code, in accordance with authority granted by Section 66477 of the California Government Code. x Fund 717: Residential Construction Tax This fund is a depository for fees levied for the construction, replacement, or conversion of all dwelling units within the City including hotels and motels, collected pursuant to Chapter 3.32 of the Chula Vista Municipal Code. x Fund 725: Industrial Development Authority The Industrial Development Authority (IDA) is a conduit-issuer of bonds, formed in February 1982 (Ordinance 1970) by the City of Chula Vista City Council. The IDA enables bonds to be issued with a tax-exempt status, but does not pledge City funds to repay the bond issues. The City is able to issue and sell bonds to provide financial assistance that has a public benefit for the acquisition, construction and installation of facilities for industrial, commercial, business or public utility purposes. 122 273 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 968 955 2,500 - Other Expenses 300 541 - - Transfers Out 65,499 33,026 66,790 - CIP Project Expenditures 193,711 47,040 - - TOTAL EXPENDITURES 260,478$ 81,562$ 69,290$ -$ REVENUES Use of Money and Property (39,679) (7,580) - - Charges for Services (3,861) - - - Other Revenue (18,786) (9,429) - - Transfers In (285,803) (24,864) - - TOTAL REVENUES (348,129)$ (41,873)$ -$ -$ NET FUND ACTIVITY (87,651)$ 39,689$ 69,290$ -$ ȋͷͲǦͷͳͺȌ 123 274 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 507-Otay Valley Rd AD 90-2 Impvt - - 2,500 - 508-Assessment District 97-2 193,711 76,066 - - 511-OV Rd Fee Recovery District 434 428 - - 512-EL Greens II AD 94-1 Imprvmnt 834 1,068 - - 517-AD2004-1 Dixon Drive - 1,000 31,600 - 518-AD2005-1 Tobias Drive 65,499 3,000 35,190 - TOTAL EXPENDITURES 260,478$ 81,562$ 69,290$ -$ REVENUES 507-Otay Valley Rd AD 90-2 Impvt (1,421) (276) - - 508-Assessment District 97-2 (287,815) (25,002) - - 511-OV Rd Fee Recovery District (19,569) (3,087) - - 512-EL Greens II AD 94-1 Imprvmnt (19,352) (3,799) - - 515-Twin Oaks Ave AD 96-1 Imprvmnt (371) (79) - - 516-Oxford St AD 97-1 Improvement (78) (11) - - 517-AD2004-1 Dixon Drive (9,773) (102) - - 518-AD2005-1 Tobias Drive (9,750) (9,517) - - TOTAL REVENUES (348,129)$ (41,873)$ -$ -$ NET FUND ACTIVITY (87,651)$ 39,689$ 69,290$ -$ ȋͷͲǦͷͳͺȌ 124 275 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 23,862 25,835 56,900 55,300 Other Expenses 588,510 323,187 905,000 916,000 Transfers Out 7,711,770 5,078,179 6,537,308 7,737,472 CIP Project Expenditures 1,814,117 3,145,212 3,708,499 919,044 TOTAL EXPENDITURES 10,138,259$ 8,572,413$ 11,207,707$ 9,627,816$ REVENUES Use of Money and Property (629,398) 10,509 - (9,000) Charges for Services (8,638,052) (8,523,275) (7,236,600) (7,236,600) Other Revenue (225) - - - Transfers In (2,609,582) (13,485) (1,035,000) (1,035,000) TOTAL REVENUES (11,877,257)$ (8,526,251)$ (8,271,600)$ (8,280,600)$ NET FUND ACTIVITY (1,738,998)$ 46,162$ 2,936,107$ 1,347,216$ 125 276 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 542-Drainage DIF 773,634 77,621 10,000 10,000 560-Public Facilities DIF 7,830,107 5,225,708 6,843,408 8,053,772 580-Pedestrian Bridge DIFs 12,087 3,950 110,000 110,000 590-Transportation DIFs 1,522,431 3,265,134 4,244,299 1,454,044 TOTAL EXPENDITURES 10,138,259$ 8,572,413$ 11,207,707$ 9,627,816$ REVENUES 542-Drainage DIF (76,056) (13,531) - - 560-Public Facilities DIF (6,752,137) (4,428,277) (5,300,000) (5,300,000) 580-Pedestrian Bridge DIFs (327,418) (300,613) (145,000) (145,000) 590-Transportation DIFs (4,721,646) (3,783,830) (2,826,600) (2,835,600) TOTAL REVENUES (11,877,257)$ (8,526,251)$ (8,271,600)$ (8,280,600)$ NET FUND ACTIVITY (1,738,998)$ 46,162$ 2,936,107$ 1,347,216$ 126 277 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 21,137 78,832 65,000 65,000 Transfers Out - 6,400 - - CIP Project Expenditures 3,279,735 3,521,525 8,002,203 2,176,107 TOTAL EXPENDITURES 3,300,872$ 3,606,757$ 8,067,203$ 2,241,107$ REVENUES Use of Money and Property (1,269) (121) - - Revenue from Other Agencies (3,300,874) (3,365,897) (8,067,203) (2,241,107) TOTAL REVENUES (3,302,143)$ (3,366,018)$ (8,067,203)$ (2,241,107)$ NET FUND ACTIVITY (1,271)$ 240,739$ -$ -$ 127 278 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 723-Bicycle Facilities Fund 21,137 78,832 65,000 65,000 735-Transportation Partnership - 29,755 - - 736-Other Transportation Program 3,279,735 3,452,120 8,002,203 2,176,107 741-Prop 1B Highway Safety - 46,050 - - TOTAL EXPENDITURES 3,300,872$ 3,606,757$ 8,067,203$ 2,241,107$ REVENUES 723-Bicycle Facilities Fund (21,137) (74,372) (65,000) (65,000) 735-Transportation Partnership (492) (49) - - 736-Other Transportation Program (3,279,737) (3,291,525) (8,002,203) (2,176,107) 741-Prop 1B Highway Safety (777) (72) - - TOTAL REVENUES (3,302,143)$ (3,366,018)$ (8,067,203)$ (2,241,107)$ NET FUND ACTIVITY (1,271)$ 240,739$ -$ -$ 128 279 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 14,772 14,581 50,000 50,000 Other Expenses 8,297 888,946 60,000 71,000 Transfers Out 1,329,160 742,149 718,278 717,776 CIP Project Expenditures 531,778 345,159 - 2,100,620 TOTAL EXPENDITURES 1,884,007$ 1,990,835$ 828,278$ 2,939,396$ REVENUES Taxes (185,625) (416,050) (325,505) (325,505) Use of Money and Property (479,343) (109,677) - 11,000 Charges for Services (3,203,613) (470,567) (700,000) (700,000) Other Revenue (445,508) - - (2,100,620) Transfers In (1,133,837) (370,286) (460,396) (50,000) TOTAL REVENUES (5,447,926)$ (1,366,580)$ (1,485,901)$ (3,165,125)$ NET FUND ACTIVITY (3,563,919)$ 624,255$ (657,623)$ (225,729)$ 129 280 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 713-Capital Improvement Projects 507,025 331,013 - 2,100,620 715-Parkland Acquisition & DevFees 47,863 917,673 85,000 85,000 716-Western-Park Acquisition & Dev 805,000 80,000 75,000 86,000 717-Residential Construction Tax 524,119 662,149 668,278 667,776 TOTAL EXPENDITURES 1,884,007$ 1,990,835$ 828,278$ 2,939,396$ REVENUES 713-Capital Improvement Projects (448,861) (15,444) - (2,100,620) 715-Parkland Acquisition & DevFees (4,381,959) (592,957) (650,000) (639,000) 716-Western-Park Acquisition & Dev (96,162) (354) (100,000) (100,000) 717-Residential Construction Tax (520,944) (757,824) (735,901) (325,505) 725-Industrial Development Auth. - 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ƚŚĞŝƚLJƚŽĨŝŶĂŶĐĞĂǁŝĚĞǀĂƌŝĞƚLJŽĨƉƌŽũĞĐƚƐ͕ŝŶĐůƵĚŝŶŐ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ŽĨ ƚŚĞ WƵďůŝĐ tŽƌŬƐ ĞŶƚĞƌ ĂŶĚ ƚŚĞ WŽůŝĐĞ &ĂĐŝůŝƚLJ͕ ƉĂƌŬŝŶŐ ĨĂĐŝůŝƚŝĞƐ͕ ƌĞĨƵƌďŝƐŚŵĞŶƚ ŽĨ ƚŚĞ ŚƵůĂ sŝƐƚĂ ^ŚŽƉƉŝŶŐ DĂůů͕ ƉƌŽƉĞƌƚLJ ĂĐƋƵŝƐŝƚŝŽŶƐ͕ ďƵŝůĚŝŶŐ ƌĞŵŽĚĞůŝŶŐ͕ ĂŶĚ ĞƋƵŝƉŵĞŶƚ ĂŶĚ ƐŽĨƚǁĂƌĞ ĂĐƋƵŝƐŝƚŝŽŶ͘ ŶŶƵĂůĚĞďƚƐĞƌǀŝĐĞĐŽƐƚƐĂƌĞĨƵŶĚĞĚďLJƚŚĞ'ĞŶĞƌĂů &ƵŶĚ ĂŶĚ WƵďůŝĐ &ĂĐŝůŝƚŝĞƐ ĞǀĞůŽƉŵĞŶƚ /ŵƉĂĐƚ &ĞĞ &ƵŶĚ͘ d^ Zs/ ʹ/dz&hE Ğďƚ^ĞƌǀŝĐĞĨŽƌŝƚLJ&ƵŶĚĂĐĐŽƵŶƚƐĨŽƌƚŚĞĂĐƚŝǀŝƚŝĞƐŽĨ ƚŚĞŝƚLJ͛ƐďŽŶĚƐ;ŶŽƚŝƐƐƵĞĚďLJƚŚĞsWƵďůŝĐ&ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ Žƌ ƚŚĞ s DƵŶŝĐŝƉĂů &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJͿ͕ ŶŽƚĞƐĂŶĚĐĂƉŝƚĂůůĞĂƐĞƐ͘ĞďƚƐĞƌǀŝĐĞĞdžƉĞŶĚŝƚƵƌĞƐĨŽƌ ƚŚĞŝƚLJ&ƵŶĚĂƌĞĂƉƉƌŽdžŝŵĂƚĞůLJΨϭ͘ϵŵŝůůŝŽŶŽĨĨƐĞƚďLJ ƌĞǀĞŶƵĞƐŽĨΨϭ͘ϵŵŝůůŝŽŶ͘dŽĨŽůůŽǁŝƐĂďƌŝĞĨĚĞƐĐƌŝƉƚŝŽŶ ŽĨƚŚĞŝƚLJ&ƵŶĚͲĚĞďƚƐĞƌǀŝĐĞĨƵŶĚƐ͘ x&ƵŶĚϰϰϮ͗'^ĞĐƚŝŽŶϭϬϴ>ŽĂŶ /Ŷ:ƵŶĞŽĨϮϬϬϴ͕ƚŚĞŝƚLJƌĞĐĞŝǀĞĚĂůŽĂŶŽĨΨϵ͘ϱ ŵŝůůŝŽŶĨƌŽŵƚŚĞh͘^͘ĞƉĂƌƚŵĞŶƚŽĨ,ŽƵƐŝŶŐĂŶĚ hƌďĂŶĞǀĞůŽƉŵĞŶƚ;,hͿ͕ƵŶĚĞƌƚŚĞ^ĞĐƚŝŽŶϭϬϴ ƉƌŽŐƌĂŵ͘dŚĞƐĞĨƵŶĚƐǁŝůůďĞƌĞƉĂŝĚǁŝƚŚĂƉŽƌƚŝŽŶ ŽĨƚŚĞŝƚLJ͛ƐĂŶŶƵĂů'ĂůůŽĐĂƚŝŽŶ͕ŽǀĞƌƚŚĞŶĞdžƚ ϮϬLJĞĂƌƐ͘dŚĞĨƵŶĚƐǁŝůůďĞƵƐĞĚĨŽƌƚŚĞ͚ĂƐƚůĞWĂƌŬ 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ŽŵŵŝƐƐŝŽŶ ƚŽ ĨƵŶĚ ǀĂƌŝŽƵƐ ĞŶĞƌŐLJ ĐŽŶƐĞƌǀĂƚŝŽŶĐĂƉŝƚĂůƉƌŽũĞĐƚƐ͘ KŶ:ƵůLJϮϯ͕ϮϬϭϯ͕ƚŚĞŝƚLJŽƵŶĐŝůĂƵƚŚŽƌŝnjĞĚĂϭϲ LJĞĂƌ ůĞĂƐĞ ƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚ ǁŝƚŚ ĂŶĐ ŽĨ ŵĞƌŝĐĂƚŽĨƵŶĚǀĂƌŝŽƵƐƐŽůĂƌĞŶĞƌŐLJƉƌŽũĞĐƚƐĨŽƌ ŝƚLJĨĂĐŝůŝƚŝĞƐ͘dŚĞŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞůŽĂŶǁĂƐ ΨϮ͕ϭϮϭ͕ϱϬϬ ĂŶĚ ǁŝůů ďĞ ƌĞƉĂŝĚ ƚŚƌŽƵŐŚ ĨƵƚƵƌĞ ĞŶĞƌŐLJƐĂǀŝŶŐƐ͘ d^ Zs/ ʹ,h>s/^dWh>/&/EE/E' hd,KZ/dz dŚĞŚƵůĂsŝƐƚĂWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ;W&ͿĨŽƌŵĞĚ ŝŶ Ɖƌŝů ϭϵϵϱ ƚŽ ƉƌŽǀŝĚĞ ĨŽƌ ĨŝŶĂŶĐŝŶŐ ŽĨ ĂĐƋƵŝƐŝƚŝŽŶ͕ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂŶĚ ŝŵƉƌŽǀĞŵĞŶƚ ŽĨ ƉƵďůŝĐ ĐĂƉŝƚĂů ŝŵƉƌŽǀĞŵĞŶƚƐ͘ dŚĞ W& ŚĂƐ ďĞĞŶ ƵƐĞĚ ƚŽ ŝƐƐƵĞ ĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶŽŶďĞŚĂůĨŽĨƚŚĞŝƚLJ͘ 133 284 ʹͲͳͻ Ğďƚ ƐĞƌǀŝĐĞ ĞdžƉĞŶĚŝƚƵƌĞƐ ĨŽƌ ƚŚĞ W& ĂƌĞ ĂƉƉƌŽdžŝŵĂƚĞůLJΨϲ͘ϴŵŝůůŝŽŶǁŝƚŚŽĨĨƐĞƚƚŝŶŐƌĞǀĞŶƵĞƐŽĨ Ψϲ͘ϴŵŝůůŝŽŶ͘dŽĨŽůůŽǁŝƐĂďƌŝĞĨĚĞƐĐƌŝƉƚŝŽŶŽĨƚŚĞŚƵůĂ sŝƐƚĂW&ͲĚĞďƚƐĞƌǀŝĐĞĨƵŶĚƐ͘ x&ƵŶĚϰϳϮ͗ϮϬϬϰĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶʹŝǀŝĐ ĞŶƚĞƌWƌŽũĞĐƚʹWŚĂƐĞ/ /Ŷ ƵŐƵƐƚ ϮϬϬϰ͕ ƚŚĞ WƵďůŝĐ &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚƚŚĞϮϬϬϰKWŝŶƚŚĞĂŵŽƵŶƚŽĨΨϯϳ͕ϮϰϬ͕ϬϬϬ ƚŽ ĨŝŶĂŶĐĞ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂŶĚ ĞƋƵŝƉƉŝŶŐ ŽĨ ĐĞƌƚĂŝŶŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚŚĞŝǀŝĐĞŶƚĞƌĐŽŵƉůĞdž ĂŶĚ ƚŽ ƉƌŽǀŝĚĞ ĨƵŶĚƐ ĨŽƌ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ŝŵƉƌŽǀĞŵĞŶƚƐŝŶǁĞƐƚĞƌŶŚƵůĂsŝƐƚĂ͘dŚĞƐŽƵƌĐĞ ŽĨ ƌĞƉĂLJŵĞŶƚ ŽĨ ƚŚĞ ĐĞƌƚŝĨŝĐĂƚĞƐ ŝƐ ƚŚĞ ůĞĂƐĞ ƉĂLJŵĞŶƚƐ ƚŽ ďĞ ŵĂĚĞ ďLJ ƚŚĞ 'ĞŶĞƌĂů &ƵŶĚ ĂŶĚ W&/&ƚŽƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ͘dŚĞϮϬϬϰ KWƐǁĞƌĞƌĞĨƵŶĚĞĚŝŶ^ĞƉƚĞŵďĞƌϮϬϭϱ͘ x&ƵŶĚϰϳϯ͗ϮϬϬϲĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶʹŝǀŝĐ ĞŶƚĞƌWƌŽũĞĐƚʹWŚĂƐĞ// /ŶDĂƌĐŚϮϬϬϲ͕ƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚƚŚĞϮϬϬϲKWŝŶƚŚĞĂŵŽƵŶƚŽĨΨϮϬ͕ϯϮϱ͕ϬϬϬ ƚŽ ĨŝŶĂŶĐĞ ƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂŶĚ ĞƋƵŝƉƉŝŶŐ ŽĨ ĂĚĚŝƚŝŽŶĂů ŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽ ƚŚĞ ŝǀŝĐ ĞŶƚĞƌ ĐŽŵƉůĞdžĂŶĚĨŽƌƚŚĞƌĞŶŽǀĂƚŝŽŶŽĨƚŚĞŝƚLJ͛ƐEĂƚƵƌĞ ĞŶƚĞƌ͘dŚĞϮϬϬϲKWƐǁĞƌĞƌĞĨƵŶĚĞĚŝŶ:ƵůLJϮϬϭϲ͘ x&ƵŶĚϰϳϰ͗ϮϬϭϬKWZĞĨŝŶĂŶĐĞʹŽƌƉŽƌĂƚŝŽŶzĂƌĚ ĂŶĚŝǀŝĐĞŶƚĞƌWŚĂƐĞ/// /Ŷ &ĞďƌƵĂƌLJ ϮϬϭϬ͕ ƚŚĞ WƵďůŝĐ &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚƚŚĞϮϬϭϬKWŝŶƚŚĞĂŵŽƵŶƚŽĨΨϮϵ͕ϯϱϱ͕ϬϬϬ ƚŽƌĞĨŝŶĂŶĐĞƚŚĞŽƵƚƐƚĂŶĚŝŶŐΨϭϱ͕ϲϰϬ͕ϬϬϬƉƌŝŶĐŝƉĂů ďĂůĂŶĐĞŽĨƚŚĞϮϬϬϬĞƌƚŝĨŝĐĂƚĞŽĨWĂƌƚŝĐŝƉĂƚŝŽŶĂŶĚ ƚŽĨŝŶĂŶĐĞĐĞƌƚĂŝŶĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƉƌŽũĞĐƚƐ͘ dŚĞƐŽƵƌĐĞŽĨƌĞƉĂLJŵĞŶƚŽĨƚŚĞĐĞƌƚŝĨŝĐĂƚĞƐŝƐƚŚĞ ůĞĂƐĞƉĂLJŵĞŶƚƐƚŽďĞŵĂĚĞďLJƚŚĞ'ĞŶĞƌĂů&ƵŶĚ ĂŶĚ W&/& ƚŽ ƚŚĞ WƵďůŝĐ &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ͘ dŚĞ ϮϬϭϬKWƐǁĞƌĞƌĞĨƵŶĚĞĚŝŶ:ƵůLJϮϬϭϲ͘ x&ƵŶĚ ϰϳϱ͗ ϮϬϭϰ ZĞĨƵŶĚŝŶŐ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ /ŶDĂƌĐŚϮϬϭϰ͕ƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚƚŚĞϮϬϭϰKWŝŶƚŚĞĂŵŽƵŶƚŽĨΨϰϱ͕ϵϮϬ͕ϬϬϬ ƚŽƌĞĨŝŶĂŶĐĞƚŚĞŽƵƚƐƚĂŶĚŝŶŐƉƌŝŶĐŝƉĂůďĂůĂŶĐĞŽĨ ƚŚĞϮϬϬϮĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶ͘dŚĞƐŽƵƌĐĞŽĨ ƌĞƉĂLJŵĞŶƚŽĨƚŚĞĐĞƌƚŝĨŝĐĂƚĞƐŝƐƚŚĞůĞĂƐĞƉĂLJŵĞŶƚƐ ƚŽďĞŵĂĚĞďLJƚŚĞ'ĞŶĞƌĂů&ƵŶĚĂŶĚW&/&ƚŽƚŚĞ WƵďůŝĐ &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ͘ dŚĞ ƚĞƌŵ ŽĨ ƚŚĞ ĐĞƌƚŝĨŝĐĂƚĞƐŝƐƚŚƌŽƵŐŚĐĂůĞŶĚĂƌLJĞĂƌϮϬϯϮ͘ x&ƵŶĚ ϰϳϲ͗ ϮϬϭϱ ZĞĨƵŶĚŝŶŐ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ /Ŷ^ĞƉƚĞŵďĞƌϮϬϭϱ͕ƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚƚŚĞϮϬϭϱKWŝŶƚŚĞĂŵŽƵŶƚŽĨΨϯϰ͕ϯϯϬ͕ϬϬϬ ƚŽƌĞĨŝŶĂŶĐĞƚŚĞŽƵƚƐƚĂŶĚŝŶŐƉƌŝŶĐŝƉĂůďĂůĂŶĐĞŽĨ ƚŚĞ ϮϬϬϰ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ ĂŶĚ ƚŽ ƌĞĨŝŶĂŶĐĞƉĂƌƚŽĨƚŚĞŽƵƚƐƚĂŶĚŝŶŐƉƌŝŶĐŝƉĂůďĂůĂŶĐĞ ŽĨƚŚĞϮϬϬϲĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶ͘dŚĞƐŽƵƌĐĞ ŽĨ ƌĞƉĂLJŵĞŶƚ ŽĨ ƚŚĞ ĐĞƌƚŝĨŝĐĂƚĞƐ ŝƐ ƚŚĞ ůĞĂƐĞ ƉĂLJŵĞŶƚƐƚŽďĞŵĂĚĞďLJ'ĞŶĞƌĂů&ƵŶĚĂŶĚW&/& ƚŽƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ͘dŚĞƚĞƌŵŽĨƚŚĞ ĐĞƌƚŝĨŝĐĂƚĞƐŝƐƚŚƌŽƵŐŚĐĂůĞŶĚĂƌLJĞĂƌϮϬϯϰ͘ x&ƵŶĚ ϰϳϳ͗ ϮϬϭϲ ZĞĨƵŶĚŝŶŐ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ /Ŷ:ƵůLJϮϬϭϲ͕ƚŚĞWƵďůŝĐ&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJŝƐƐƵĞĚ ƚŚĞ ϮϬϭϲ KW ŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ Ψϴ͕ϲϬϬ͕ϬϬϬ ƚŽ ƌĞĨŝŶĂŶĐĞƚŚĞŽƵƚƐƚĂŶĚŝŶŐƉƌŝŶĐŝƉĂůďĂůĂŶĐĞŽĨƚŚĞ ϮϬϬϲ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ͘ dŚĞ ƐŽƵƌĐĞ ŽĨ ƌĞƉĂLJŵĞŶƚŽĨƚŚĞĐĞƌƚŝĨŝĐĂƚĞƐŝƐƚŚĞůĞĂƐĞƉĂLJŵĞŶƚƐ ƚŽ ďĞ ŵĂĚĞ ďLJ 'ĞŶĞƌĂů &ƵŶĚ ĂŶĚ W&/& ƚŽ ƚŚĞ WƵďůŝĐ &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ͘ dŚĞ ƚĞƌŵ ŽĨ ƚŚĞ ĐĞƌƚŝĨŝĐĂƚĞƐŝƐƚŚƌŽƵŐŚĐĂůĞŶĚĂƌLJĞĂƌϮϬϯϲ͘ d^ Zs/ ʹ,h>s/^dDhE//W> &/EE/E'hd,KZ/dz dŚĞ ŚƵůĂ sŝƐƚĂ DƵŶŝĐŝƉĂů &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ ;W&Ϳ ĨŽƌŵĞĚŝŶ:ƵŶĞϮϬϭϯƚŽƉƌŽǀŝĚĞĨŽƌĨŝŶĂŶĐŝŶŐŽƌ ƌĞĨŝŶĂŶĐŝŶŐ ĨŽƌ ƚŚĞ ĂĐƋƵŝƐŝƚŝŽŶ͕ ĐŽŶƐƚƌƵĐƚŝŽŶ ĂŶĚ ŝŵƉƌŽǀĞŵĞŶƚŽĨƉƵďůŝĐĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƐ͘dŚĞD& ŚĂƐďĞĞŶƵƐĞĚƚŽŝƐƐƵĞ>ĞĂƐĞZĞǀĞŶƵĞZĞĨƵŶĚŝŶŐŽŶĚƐ ŽŶďĞŚĂůĨŽĨƚŚĞŝƚLJ͘ Ğďƚ ƐĞƌǀŝĐĞ ĞdžƉĞŶĚŝƚƵƌĞƐ ĨŽƌ ƚŚĞ D& ĂƌĞ ĂƉƉƌŽdžŝŵĂƚĞůLJΨϮ͘ϳŵŝůůŝŽŶǁŝƚŚŽĨĨƐĞƚƚŝŶŐƌĞǀĞŶƵĞƐŽĨ ΨϮ͘ϳŵŝůůŝŽŶ͘dŽĨŽůůŽǁŝƐĂďƌŝĞĨĚĞƐĐƌŝƉƚŝŽŶŽĨƚŚĞŚƵůĂ sŝƐƚĂD&ͲĚĞďƚƐĞƌǀŝĐĞĨƵŶĚ͘ x&ƵŶĚϰϳϴ͗ϮϬϭϲ>ĞĂƐĞZĞǀĞŶƵĞZĞĨƵŶĚŝŶŐŽŶĚƐ /Ŷ :ƵůLJ ϮϬϭϲ͕ ƚŚĞ DƵŶŝĐŝƉĂů &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚƚŚĞϮϬϭϲ>ZZŝŶƚŚĞĂŵŽƵŶƚŽĨΨϮϱ͕ϴϴϱ͕ϬϬϬ ƚŽƌĞĨŝŶĂŶĐĞƚŚĞŽƵƚƐƚĂŶĚŝŶŐƉƌŝŶĐŝƉĂůďĂůĂŶĐĞŽĨ ƚŚĞϮϬϭϬĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶ͘dŚĞƐŽƵƌĐĞ ŽĨƌĞƉĂLJŵĞŶƚŽĨƚŚĞ>ZZƐŝƐƚŚĞůĞĂƐĞƉĂLJŵĞŶƚƐƚŽ ďĞŵĂĚĞďLJ'ĞŶĞƌĂů&ƵŶĚĂŶĚW&/&ƚŽƚŚĞ DƵŶŝĐŝƉĂů &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJ͘ dŚĞ ƚĞƌŵ ŽĨ ƚŚĞ ůĞĂƐĞŝƐƚŚƌŽƵŐŚĐĂůĞŶĚĂƌLJĞĂƌϮϬϯϯ͘ 134 285 ʹͲͳͻ x&ƵŶĚ ϰϳϵ͗ >ĞĂƐĞ ZĞǀĞŶƵĞ ŽŶĚƐ ^ĞƌŝĞƐ ϮϬϭϳ Θ ^ĞƌŝĞƐϮϬϭϳ /Ŷ ĞĐĞŵďĞƌ ϮϬϭϳ͕ ƚŚĞ DƵŶŝĐŝƉĂů &ŝŶĂŶĐŝŶŐ ƵƚŚŽƌŝƚLJŝƐƐƵĞĚƚŚĞϮϬϭϳ>Z^ĞƌŝĞƐŝŶƚŚĞ ĂŵŽƵŶƚŽĨΨϭϮ͕Ϭϰϱ͕ϬϬϬĂŶĚƚŚĞϮϬϭϳ>Z^ĞƌŝĞƐ ŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ Ψϭ͕Ϭϴϱ͕ϬϬϬ ƚŽ ĨŝŶĂŶĐĞ ƉŚŽƚŽǀŽůƚĂŝĐ ĞŶĞƌŐLJ ƐLJƐƚĞŵƐ Ăƚ ǀĂƌŝŽƵƐ ŝƚLJ ĨĂĐŝůŝƚŝĞƐ͘dŚĞƐŽƵƌĐĞŽĨƌĞƉĂLJŵĞŶƚŽĨƚŚĞ>ZŝƐƚŚĞ ůĞĂƐĞƉĂLJŵĞŶƚƐƚŽďĞŵĂĚĞďLJƚŚĞ'ĞŶĞƌĂů&ƵŶĚƚŽ ƚŚĞDƵŶŝĐŝƉĂů&ŝŶĂŶĐŝŶŐƵƚŚŽƌŝƚLJ͘dŚĞƚĞƌŵŽĨƚŚĞ ^ĞƌŝĞƐϮϬϭϳůĞĂƐĞŝƐƚŚƌŽƵŐŚĐĂůĞŶĚĂƌLJĞĂƌϮϬϰϴ ĂŶĚƚŚĞƚĞƌŵŽĨƚŚĞ^ĞƌŝĞƐϮϬϭϳůĞĂƐĞŝƐƚŚƌŽƵŐŚ ĐĂůĞŶĚĂƌLJĞĂƌϮϬϮϴ͘ 135 286 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Other Expenses 1,669,044 2,019,635 1,995,140 1,914,000 Transfers Out 4,115,118 22,320 1,385,000 - TOTAL EXPENDITURES 5,784,162$ 2,041,955$ 3,380,140$ 1,914,000$ REVENUES Use of Money and Property (9,378) (1,860) -- Other Revenue (197,016) (410,010) (168,000) (292,000) Transfers In (5,415,614) (2,100,021) (3,212,140) (1,635,600) TOTAL REVENUES (5,622,008)$ (2,511,891)$ (3,380,140)$ (1,927,600)$ NET FUND ACTIVITY 162,154$ (469,936)$ -$ (13,600)$ Ǧ ȋͶͶʹǦͶͷ͵Ȍ 136 287 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 442-CDBG Section 108 Loan 758,243 759,858 762,200 764,000 451-Long Term Debt - City of CV 3,778,863 22,320 1,385,000 - 452-Equipment Lease Fund 435,207 599,484 594,540 590,400 453-Energy Conservation Loans 811,849 660,293 638,400 559,600 TOTAL EXPENDITURES 5,784,162$ 2,041,955$ 3,380,140$ 1,914,000$ REVENUES 442-CDBG Section 108 Loan (758,243) (759,858) (762,200) (764,000) 451-Long Term Debt - City of CV (3,678,423) (290,000) (1,385,000) - 452-Equipment Lease Fund (351,363) (563,964) (594,540) (346,000) 453-Energy Conservation Loans (833,979) (898,069) (638,400) (817,600) TOTAL REVENUES (5,622,008)$ (2,511,891)$ (3,380,140)$ (1,927,600)$ NET FUND ACTIVITY 162,154$ (469,936)$ -$ (13,600)$ Ǧ ȋͶͶʹǦͶͷ͵Ȍ 137 288 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 11,725 10,300 21,000 21,001 Other Expenses 46,971,130 48,819,213 8,950,700 9,490,130 Transfers Out 40,051,517 35,919,450 - - TOTAL EXPENDITURES 87,034,372$ 84,748,963$ 8,971,700$ 9,511,131$ REVENUES Use of Money and Property (685,149) (43,860) - - Other Revenue (36,592,493) (37,321,273) - (314,139) Transfers In (49,358,973) (44,701,968) (8,971,700) (9,175,817) TOTAL REVENUES (86,636,615)$ (82,067,101)$ (8,971,700)$ (9,489,956)$ NET FUND ACTIVITY 397,757$ 2,681,862$ -$ 21,175$ Ǧ ȋͶʹǦͶͺȌ 138 289 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 472-2004 COP Civ Ctr Proj Phase I 33,291,613 30 - - 473-2006 COP Civ Ctr Proj Phase 2 8,545,361 8,957,945 - - 474-2010 COP Refinance 2,490,319 30,638,511 - - 475-2014 COP Refunding 3,611,381 3,603,231 3,603,500 3,608,000 476-2015 Refunding COP 39,095,698 2,921,214 2,931,200 2,929,000 477-2016 Ref COP Civic Ctr/Nature - 8,079,752 288,000 288,000 478-2016 LRRB PFDIF/COP - 30,548,280 2,149,000 2,158,000 479-2017 CREBs LRBs - - - 528,131 TOTAL EXPENDITURES 87,034,372$ 84,748,963$ 8,971,700$ 9,511,131$ REVENUES 472-2004 COP Civ Ctr Proj Phase I (30,828,149) - - - 473-2006 COP Civ Ctr Proj Phase 2 (8,394,974) (7,791,170) - - 474-2010 COP Refinance (2,487,869) (28,091,733) - - 475-2014 COP Refunding (3,607,949) (3,600,437) (3,603,500) (3,608,000) 476-2015 Refunding COP (41,317,674) (2,920,897) (2,931,200) (2,929,000) 477-2016 Ref COP Civic Ctr/Nature - (9,089,691) (288,000) (288,000) 478-2016 LRRB PFDIF/COP - (30,573,173) (2,149,000) (2,158,000) 479-2017 CREBs LRBs - - - (506,956) TOTAL REVENUES (86,636,615)$ (82,067,101)$ (8,971,700)$ (9,489,956)$ NET FUND ACTIVITY 397,757$ 2,681,862$ -$ 21,175$ Ǧ ȋͶʹǦͶͺȌ 139 290 140 291 ʹͲͳͻ 141 292 142 293 FY2019 City of Chula Vista Proposed Budget The funds included in this section include miscellaneous Special Revenue and Internal Service funds. Special Revenue Funds are used to account for proceeds derived from various revenue sources, which are legally restricted to expenditures for specific purposes. Internal Service Funds are used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. Internal Service Funds account for the activities of worker’s compensation, insurance, and technology replacement. To follow is a brief description of special revenue funds. TRANSPORTATION FUNDS Included in this group are the following funds: x Fund 221: Gas Tax This fund accounts for the receipt and expenditure of all monies received from the State under Street and Highway Code Sections 2103, 2105, 2106, 2107, 2107.5, and the Road Repair and Accountability Act of 2017 (Senate Bill 1). The allocations must be spent for street maintenance or construction and a limited amount for engineering. Historically, these monies were deemed highly restrictive insofar as expenditure, but with adoption of AB1502 effective January 1, 1978 most of the money can be used for any street purpose. x Fund 227: Transportation Sales Tax This fund was established to account for the receipt and disbursement of all transportation sales tax (TransNet) revenues for the City. In November 1987, San Diego County voters first approved the Transportation Program (TransNet). In November of 2004, voters approved a 40-year extension of the program, which funds transportation improvements throughout the region via a half-cent local sales tax. The City’s allocation of regional funds is based upon population and the number of local street and road miles maintained by the City. PARKING FUNDS Included as part of this group are the following funds: x Fund 241:Parking Meter Parking Meter Fund revenues are generated through two sources: coin deposits from parking meters located in the downtown area, and parking citation payments for expired meter violations. These funds pay for the coin collection and maintenance of the meters, the parking enforcement staff that monitors the downtown area, and general upkeep and signage of the downtown parking lots. x Fund 243: Town Center I Parking This fund is used to account for revenues from an in- lieu parking fee. This in-lieu parking fee applies to any developer of a new commercial building or addition to an existing commercial building within the Downtown Parking District. Use of monies in this fund is restricted to the purchase or development of parking sites. PUBLIC SAFETY FUNDS Included in this group are the following funds: x Fund 245: Traffic Safety This fund is a depository for all monies derived from vehicle code fines, excluding parking violations. The fines are collected through the County court system and remitted to the City monthly. These monies may be expended only for traffic control devices and equipment and maintenance thereof or for the maintenance, improvement or construction of public streets. x Fund 256: Asset Seizure This fund is a depository for assets seized under Federal statutes through the process of “equitable sharing” of drug money and real property. By law these funds may only be used for law enforcement purposes and are intended to supplement, not supplant, existing funds. LIBRARY/CULTURAL ARTS FUNDS Included in this group are the following funds: x Fund 267: Permanent Endowments Fund The Permanent Endowments Fund was established from a contribution from Gayle McCandliss in 1991 shortly after she passed away. Consistent with her 143 294 FY2019 City of Chula Vista Proposed Budget wishes, it was established as a perpetual fund to recognize and provide monetary support or recognition to individuals or groups who make substantial contribution to the arts in the City of Chula Vista. SUNDRY GRANT & MISCELLANEOUS FUNDS Included as part of this group are the following funds: x Fund 223: Telephone Users Tax (TUT) Common Fund This fund is used to account for funds in accordance with a 2014 settlement agreement that resolved a class action lawsuit challenging the City’s collection of Telephone Users’ Taxes from wireless customers. x Fund 269: Other Grant Fund The Other Grants Fund was established to account for all grants other than Federal and State grants such as: San Diego Neighborhood Reinvestment Program and Be the Change grants. x Fund 270: Mobile Home Rent Review Program Fund This fund is a depository for monies collected for the Mobile Home Administrative Fee. This fee was established in July 2011 to ensure a consistent funding source for administration and implementation of Chula Vista Municipal Code 9.50 – Mobile Home Park Space Rent Review. x Fund 271: Local Grants This fund was established to account for the receipt and disbursement of local grant funds received by the City (non-Federal or State Grants). x Fund 272: Federal Grants Fund This fund was established to account for the receipt and disbursement of all Federal Grants received by the City. x Fund 273: State Grants Fund This fund was established to account for the receipt and disbursement of all State Grants received by the City (excluding Recreation related grants). ENVIRONMENTAL SERVICES AND CONSERVATION FUNDS Included as part of this group are the following funds: x Fund 282: Environmental Services The Environmental Services fund is a depository for revenue that is generated primarily by a 5% surcharge (AB 939 fees) applied to the refuse rates for residential and commercial customers. The surcharge is authorized by the State to recover the costs of developing and implementing source reduction, recycling, and composting programs that are implemented to meet the State mandate to divert 50% of all waste generated annually in the City from landfills. The fund also includes two annual flat fees paid by the franchise hauler under the franchise agreement to cover litter container costs and to support the programs public education and enforcement service costs. STORM DRAIN FUND Storm Drain Revenue (Fund 301) – In accordance with Chapter 14.16 of the Chula Vista Municipal Code all proceeds of the storm drain fee are deposited into the Storm Drain Revenue Fund. Monies in this fund may only be used for storm drain purposes. The monthly storm drain service charge is included on the sewer bill. COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING PROGRAM FUND The overall CDBG entitlement funds are now budgeted in Fund 272 Federal Grants. x 311: CDBG Housing Program These funds are depositories of grant entitlement monies received from the Department of Housing and Urban Development for the Housing Program. The purpose of these monies is for community development projects; eligible activities include those that: x Benefit low and moderate income people. x Eliminate slums and blight. x Alleviate conditions posing a serious health and/or safety hazard. OPEN SPACE DISTRICT FUNDS These funds are a depository for all monies received for all flat rate property tax assessments levied against benefiting property owners for all maintenance of open space areas. Included in this group are funds 342 through 389. The total assessment amount for each Open Space District is calculated each year based upon the cost of providing services within the district. This assessment 144 295 FY2019 City of Chula Vista Proposed Budget rate is limited to the prior year’s amount, increased by the lesser of two local indexes. In recent years the indexed increases were not effectively keeping pace with the actual costs of providing these services to the property owners. In fiscal year 2007-08 staff went through the Proposition 218 process on seven districts/zones, in order to bring revenues in line with actual maintenance costs. Only one of the seven districts was approved for an increase in assessment. As a result a concentrated effort has been made to reduce expenditures to within available resources. MISCELLANEOUS SPECIAL REVENUE FUNDS Included in this grouping are the following fund: x Fund 316: Public Educational & Government Fee Fund This fund accounts for funds received through State Video Franchise Fees to support Public, Education, and Governmental (PEG) access channel facilities. These funds are restricted. The funds will be used to replace presentation and broadcasting equipment. INTERNAL SERVICE FUNDS Included as part of this group are the following funds: x Fund 234: Advanced Life Support (ALS) Fund This fund accounts for the receipt of pass-through revenue from ambulance services to fund First Responder Advanced Life Support program. x Fund 235: Legislative Counsel Fund This fund accounts for the expenditures and revenues used to fund outside legal counsel services as necessary to implement Proposition C. x Fund 341: Public Liability Trust Fund This fund is a depository for contributions made from the General Fund to provide an appropriate reserve level to pay for uninsured and deductibles for public liability losses. The City is self-insured for amounts up to $250,000 per claim. x Fund 393: Technology Replacement Fund The Technology Replacement Fund is an internal service function that provides for the replacement of computers and related technology equipment. Funds from departments’ operating budgets are transferred to the Technology Replacement Fund for future replacement of equipment included in the program. Due to economic reasons, the program has not been funded for several years. Computer replacement has been included in various funds based on available resources. x Fund 398: Workers Compensation This fund is a depository for contributions made from all funds, which have personnel allocated to them, to pay for annual costs related to workers’ compensation liabilities including the provision of an appropriate reserve to pay uninsured claims costs. The City is self-insured for amounts up to $1.0 million per claim. The amount of the reserve and the required annual transfer is determined by the Director of Finance, based on experience and consultation with the Risk Manager. OTHER ENTERPRISE FUNDS Included as part of this group are the following funds: x Fund 406: Chula Vista Municipal Golf Course This fund is used to account for revenues and expenditures related to the operation of the Chula Vista Municipal Golf Course. x Fund 409: Chula Vista Elite Athlete Training Center This fund accounts for the revenues and expenditures related to the management of the Chula Vista Elite Athlete Training Center. 145 296 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 6,279 2,644 - - Other Expenses 4,120 2,712 - - Transfers Out 4,259,428 4,265,447 4,259,428 4,364,371 CIP Project Expenditures 11,388,913 9,149,869 8,418,612 14,439,251 Non-CIP Project Expenditures 391,919 325 - - TOTAL EXPENDITURES 16,050,659$ 13,420,997$ 12,678,040$ 18,803,622$ REVENUES Taxes (2,535,464) (7,643,598) (6,087,000) (6,087,000) Use of Money and Property (97,061) 682 - - Revenue from Other Agencies (6,622,809) (5,415,335) (5,537,543) (11,267,850) Other Revenue (114,182) (62,358) - - Transfers In - (44,922) - - TOTAL REVENUES (9,369,516)$ (13,165,531)$ (11,624,543)$ (17,354,850)$ NET FUND ACTIVITY 6,681,143$ 255,466$ 1,053,497$ 1,448,772$ Ǧ ȋʹʹͳǦʹʹȌ 146 297 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 221-Transportation Grants-Gas Tax 8,713,800 6,051,376 5,877,428 12,384,583 227-Transportation Sales Tax 7,336,859 7,369,621 6,800,612 6,419,039 TOTAL EXPENDITURES 16,050,659$ 13,420,997$ 12,678,040$ 18,803,622$ REVENUES 221-Transportation Grants-Gas Tax (5,707,250) (5,081,811) (5,537,543) (11,267,850) 227-Transportation Sales Tax (3,662,266) (8,083,720) (6,087,000) (6,087,000) TOTAL REVENUES (9,369,516)$ (13,165,531)$ (11,624,543)$ (17,354,850)$ NET FUND ACTIVITY 6,681,143$ 255,466$ 1,053,497$ 1,448,772$ Ǧ ȋʹʹͳǦʹʹȌ 147 298 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 245,040 279,505 345,700 360,700 Other Expenses 132,934 158,964 163,500 198,500 Utilities 9,949 9,964 13,070 13,070 CIP Project Expenditures 55 37,601 - 250,000 TOTAL EXPENDITURES 387,978$ 486,034$ 522,270$ 822,270$ REVENUES Licenses & Permits (26,777) (24,082) (25,000) (25,000) Fines and Penalties (173,317) (194,376) (200,000) (200,000) Use of Money and Property (381,381) (327,148) (365,000) (365,000) TOTAL REVENUES (581,475)$ (545,606)$ (590,000)$ (590,000)$ NET FUND ACTIVITY (193,497)$ (59,572)$ (67,730)$ 232,270$ Ǧ ȋʹͶͳǦʹͶ͵Ȍ 148 299 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 241-Parking Meter 387,978 486,034 522,270 822,270 TOTAL EXPENDITURES 387,978$ 486,034$ 522,270$ 822,270$ REVENUES 241-Parking Meter (580,610) (545,424) (590,000) (590,000) 243-Town Center I Parking District (865) (182) - - TOTAL REVENUES (581,475)$ (545,606)$ (590,000)$ (590,000)$ NET FUND ACTIVITY (193,497)$ (59,572)$ (67,730)$ 232,270$ Ǧ ȋʹͶͳǦʹͶ͵Ȍ 149 300 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 23,013 24,296 163,452 68,500 Transfers Out 399,140 399,140 399,140 399,140 TOTAL EXPENDITURES 422,153$ 423,436$ 562,592$ 467,640$ REVENUES Fines and Penalties (508,082) (483,114) (437,640) (437,640) Use of Money and Property (1,675) (458) - - Revenue from Other Agencies - - (10,000) (10,000) Other Revenue - - (20,000) (20,000) TOTAL REVENUES (509,757)$ (483,572)$ (467,640)$ (467,640)$ NET FUND ACTIVITY (87,604)$ (60,136)$ 94,952$ -$ BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 245-Traffic Safety 422,153 423,436 437,640 437,640 256-Asset Seizure - - 124,952 30,000 TOTAL EXPENDITURES 422,153$ 423,436$ 562,592$ 467,640$ REVENUES 245-Traffic Safety (509,757) (483,572) (437,640) (437,640) 256-Asset Seizure - - (30,000) (30,000) TOTAL REVENUES (509,757)$ (483,572)$ (467,640)$ (467,640)$ NET FUND ACTIVITY (87,604)$ (60,136)$ 94,952$ -$ Ǧ Ǧ 150 301 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services - - 400 400 Other Expenses 500 1,500 1,200 1,200 TOTAL EXPENDITURES 500$ 1,500$ 1,600$ 1,600$ REVENUES Use of Money and Property (215) (49) - - TOTAL REVENUES (215)$ (49)$ -$ -$ NET FUND ACTIVITY 285$ 1,451$ 1,600$ 1,600$ Ǧ ȋʹȌ 151 302 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 5,843,906 6,468,662 6,963,502 7,273,275 Supplies & Services 2,822,914 2,671,789 1,949,089 1,900,893 Other Expenses 1,581,346 1,441,585 1,209,507 2,852,130 Other Capital 933,972 705,485 228,063 215,933 Utilities - 1,102 8,530 10,660 Internal Service Charges - - - 9,505 Transfers Out 794,756 880,100 783,713 1,682,027 CIP Project Expenditures 199,763 1,499,931 350,000 2,474,016 Non-CIP Project Expenditures 1,096,285 1,660,761 50,100 632,517 TOTAL EXPENDITURES 13,272,942$ 15,329,415$ 11,542,504$ 17,050,956$ REVENUES Use of Money and Property (170,307) (102,069) (99,000) (113,000) Revenue from Other Agencies (11,413,928) (12,683,124) (10,540,428) (15,916,911) Charges for Services (209,631) (199,247) (205,296) (205,296) Other Revenue (367,935) (230,105) (42,333) (42,333) Transfers In (138,759) (266,017) (294,884) (165,305) TOTAL REVENUES (12,300,560)$ (13,480,562)$ (11,181,941)$ (16,442,845)$ NET FUND ACTIVITY 972,382$ 1,848,853$ 360,563$ 608,111$ Ǧ Ƭ 152 303 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 223-Utility Tax Settlement 991,125 646,886 - - 269-Other Grants 928,519 1,051,441 1,787,928 1,716,262 270-Mobile Park Fee 33,021 50,707 65,000 65,000 271-Local Grants 270,094 229,370 134,776 136,087 272-Federal Grants 9,834,629 11,182,149 8,727,099 12,908,965 273-State Grants 1,215,554 2,168,862 827,701 2,224,642 TOTAL EXPENDITURES 13,272,942$ 15,329,415$ 11,542,504$ 17,050,956$ REVENUES 223-Utility Tax Settlement (27,314) (2,511) - - 269-Other Grants (957,624) (720,533) (1,787,928) (1,787,928) 270-Mobile Park Fee (88,931) (68,120) (65,000) (65,000) 271-Local Grants (223,955) (339,451) (92,426) (92,426) 272-Federal Grants (9,593,032) (10,621,651) (8,408,886) (12,272,574) 273-State Grants (1,409,704) (1,728,296) (827,701) (2,224,917) TOTAL REVENUES (12,300,560)$ (13,480,562)$ (11,181,941)$ (16,442,845)$ NET FUND ACTIVITY 972,382$ 1,848,853$ 360,563$ 608,111$ Ǧ Ƭ 153 304 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 657,298 599,232 741,914 777,863 Supplies & Services 646,505 577,732 864,678 858,352 Other Expenses 45,828 230,733 218,351 218,351 Other Capital 137 49,975 64,600 64,600 Utilities 4,494 7,858 10,355 10,355 Internal Service Charges - - - 7,254 Transfers Out 107,585 107,585 107,585 107,585 Non-CIP Project Expenditures - 3,877 - - TOTAL EXPENDITURES 1,461,847$ 1,576,992$ 2,007,483$ 2,044,360$ REVENUES Use of Money and Property (21,595) (4,364) - - Charges for Services (1,161,539) (1,192,848) (1,262,279) (1,262,279) Other Revenue (313,684) (310,954) (139,726) (139,726) TOTAL REVENUES (1,496,818)$ (1,508,166)$ (1,402,005)$ (1,402,005)$ NET FUND ACTIVITY (34,971)$ 68,826$ 605,478$ 642,355$ Ǧ ȋʹͺͳȌ 154 305 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 238,069 236,641 348,100 348,100 Other Expenses - 20 - - Utilities - - 840 840 Transfers Out 697,599 210,000 - - TOTAL EXPENDITURES 935,668$ 446,661$ 348,940$ 348,940$ REVENUES Licenses & Permits - - (23,750) (23,750) Fines and Penalties (11,800) (5,008) (5,000) (5,000) Use of Money and Property (3,482) (1,192) - - Charges for Services (605,207) (619,708) (555,500) (555,500) Other Revenue (1,393) (1,818) - - TOTAL REVENUES (621,882)$ (627,726)$ (584,250)$ (584,250)$ NET FUND ACTIVITY 313,786$ (181,065)$ (235,310)$ (235,310)$ Ǧ ȋ͵ͲͳȌ 155 306 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services - 16 5,100 5,100 Other Expenses 34,025 12,553 46,000 46,000 Non-CIP Project Expenditures - 17,000 - - TOTAL EXPENDITURES 34,025$ 29,569$ 51,100$ 51,100$ REVENUES Revenue from Other Agencies - (26,352) (51,100) (51,100) Other Revenue (4,175) (29,365) - - TOTAL REVENUES (4,175)$ (55,717)$ (51,100)$ (51,100)$ NET FUND ACTIVITY 29,850$ (26,148)$ -$ -$ Ǧ ȋ͵ͳͳȌ 156 307 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 6,486,597 6,450,845 7,101,254 7,285,073 Other Expenses 1,816,940 1,941,195 2,184,759 2,184,759 Other Capital 38,464 - 100,002 100,002 Utilities 2,198,014 2,122,253 2,982,435 3,059,279 Transfers Out - - - 67,823 CIP Project Expenditures 16,313 175,739 - - TOTAL EXPENDITURES 10,556,328$ 10,690,032$ 12,368,450$ 12,696,936$ REVENUES Use of Money and Property (227,663) (48,920) - - Other Revenue (11,450,924) (13,423,105) (14,513,404) (15,367,743) Transfers In - - - (67,823) TOTAL REVENUES (11,678,587)$ (13,472,025)$ (14,513,404)$ (15,435,566)$ NET FUND ACTIVITY (1,122,259)$ (2,781,993)$ (2,144,954)$ (2,738,630)$ Ǧ ȋ͵ͶʹǦ͵ͺͻȌ 157 308 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 342-CFD 11-M Rolling Hills McM 122,176 120,445 152,496 166,443 343-CFD 12-M Otay Ranch Village 7 310,541 304,756 365,547 365,647 344-CFD 13-M Otay Ranch Village 2 145,752 173,632 232,968 232,968 345-CFD 12M Village 7 Otay Ranch 344,795 382,473 497,287 503,544 346-CFD 14M-A-EUC Millenia 2,508 12,886 158,124 231,062 347-CFD 14M-B-EUC Millenia - - 61,503 116,831 348-CFD 18M Village 3 Otay Ranch - - 5,000 5,000 349-CFD 19M Freeway Commercial 2 - - 59,616 59,616 352-Bay Blvd Landscape District 3,598 4,945 12,500 12,500 353-Eastlake Maintenance Dist I 348,733 303,060 332,054 330,026 354-Open Space District #01 97,028 86,684 85,441 85,441 355-Open Space District #02 18,504 14,633 14,917 14,917 356-Open Space District #03 60,957 62,523 52,602 53,094 357-Open Space District #04 102,828 88,444 91,867 92,021 358-Open Space District #05 51,721 48,286 52,045 51,296 359-Open Space District #06 31,189 27,504 34,178 34,178 361-Open Space District #07 4,669 4,001 14,736 17,472 362-Open Space District #08 87,263 73,016 74,058 77,196 363-Open Space District #09 95,802 78,672 73,459 74,742 364-Open Space District #10 95,675 84,020 84,563 86,547 365-Open Space District #11 172,128 179,246 172,143 183,894 367-Open Space District #14 384,591 325,507 361,460 365,806 368-Open Space District #15 38,203 25,821 22,905 23,610 369-Open Space District #17 10,084 5,144 8,848 8,646 371-Open Space District #18 149,790 151,442 177,836 178,315 372-Open Space District #20 1,444,371 1,377,093 1,477,100 1,531,662 373-Open Space District #23 37,477 41,142 49,966 51,676 374-Open Space District #24 42,602 32,606 31,150 31,150 375-Open Space District #26 14,633 11,098 11,613 11,612 376-Open Space District #31 130,023 123,362 178,339 173,895 378-CFD 07M Eastlake Woods & Vista 585,709 584,101 685,373 686,966 379-CFD 08M Vlg 6 McMillin & OR 771,748 856,131 1,019,508 1,033,508 380-CFD 09M ORV II Brookfield-Shea 738,156 850,119 1,005,296 1,018,766 382-CFD 99-2 Otay Ranch Vlg 1 West 777,204 729,002 792,483 792,483 386-Otay Ranch Preserve 495,083 621,650 602,500 602,500 387-CFD 98-3 Sunbow 2 811,689 829,982 915,889 930,489 388-CFD 97-1 Otay Ranch 2,026,756 2,075,607 2,401,080 2,461,417 389-Otay Ranch Village 1,2,6,7,12 2,342 999 - - TOTAL EXPENDITURES 10,556,328$ 10,690,032$ 12,368,450$ 12,696,936$ Ǧ ȋ͵ͶʹǦ͵ͺͻȌ 158 309 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED REVENUES 342-CFD 11-M Rolling Hills McM (99,279) (168,191) (169,681) (180,505) 343-CFD 12-M Otay Ranch Village 7 (202,245) (359,333) (365,547) (511,707) 344-CFD 13-M Otay Ranch Village 2 (197,185) (333,375) (340,796) (474,860) 345-CFD 12M Village 7 Otay Ranch (459,001) (496,659) (503,247) (538,749) 346-CFD 14M-A-EUC Millenia (285,162) (221,301) (224,334) (231,062) 347-CFD 14M-B-EUC Millenia - - (67,823) (193,665) 348-CFD 18M Village 3 Otay Ranch - - (657,277) (33,298) 349-CFD 19M Freeway Commercial 2 - - (130,546) (133,157) 351-Town Center Landscape Dist I (419) (74) - - 352-Bay Blvd Landscape District (698) (10,719) (12,500) (12,875) 353-Eastlake Maintenance Dist I (303,037) (333,678) (351,035) (361,567) 354-Open Space District #01 (84,586) (83,961) (85,441) (88,004) 355-Open Space District #02 (14,530) (14,636) (15,063) (15,515) 356-Open Space District #03 (50,352) (53,906) (52,602) (54,180) 357-Open Space District #04 (89,499) (98,558) (91,867) (94,623) 358-Open Space District #05 (52,892) (51,189) (52,045) (53,606) 359-Open Space District #06 (33,555) (33,425) (34,178) (35,203) 361-Open Space District #07 (3,796) (8,925) (14,736) (15,178) 362-Open Space District #08 (71,325) (75,901) (74,058) (76,280) 363-Open Space District #09 (72,088) (72,003) (73,459) (75,663) 364-Open Space District #10 (82,773) (83,213) (84,563) (87,100) 365-Open Space District #11 (169,488) (169,239) (172,143) (177,307) 366-Open Space District #13 (5) (6) - - 367-Open Space District #14 (348,891) (355,109) (361,460) (372,304) 368-Open Space District #15 (22,104) (22,123) (22,905) (23,592) 369-Open Space District #17 (8,658) (8,694) (8,848) (9,113) 371-Open Space District #18 (174,721) (177,524) (177,836) (183,171) 372-Open Space District #20 (1,398,633) (1,456,167) (1,479,914) (1,524,326) 373-Open Space District #23 (52,097) (50,268) (49,966) (52,483) 374-Open Space District #24 (30,567) (30,495) (31,150) (32,085) 375-Open Space District #26 (11,217) (11,377) (11,613) (11,961) 376-Open Space District #31 (175,316) (186,557) (189,419) (195,121) 378-CFD 07M Eastlake Woods & Vista (284,689) (678,029) (686,876) (889,417) 379-CFD 08M Vlg 6 McMillin & OR (1,115,153) (1,299,406) (1,317,286) (1,496,836) 380-CFD 09M ORV II Brookfield-Shea (961,696) (1,107,075) (1,122,910) (1,314,802) 382-CFD 99-2 Otay Ranch Vlg 1 West (773,549) (876,249) (887,430) (1,006,630) 383-Town Ctr Business Improv Dist 2,289 (203) - - 386-Otay Ranch Preserve (670,716) (735,323) (743,651) (765,961) 387-CFD 98-3 Sunbow 2 (848,662) (981,809) (998,072) (1,027,986) 388-CFD 97-1 Otay Ranch (2,529,517) (2,826,779) (2,851,127) (3,085,674) 389-Otay Ranch Village 1,2,6,7,12 (2,775) (546) - - TOTAL REVENUES (11,678,587)$ (13,472,025)$ (14,513,404)$ (15,435,566)$ NET FUND ACTIVITY (1,122,259)$ (2,781,993)$ (2,144,954)$ (2,738,630)$ Ǧ ȋ͵ͶʹǦ͵ͺͻȌ 159 310 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services 157,842 226,333 300,000 300,000 Other Expenses 265 478 - - Other Capital 204,160 60,109 300,000 300,000 TOTAL EXPENDITURES 362,267$ 286,920$ 600,000$ 600,000$ REVENUES Taxes (664,470) (599,685) (600,000) (600,000) Use of Money and Property (17,109) (4,350) - - TOTAL REVENUES (681,579)$ (604,035)$ (600,000)$ (600,000)$ NET FUND ACTIVITY (319,312)$ (317,115)$ -$ -$ Ǧ Ƭ Ǥ ȋ͵ͳȌ 160 311 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Personnel Services 280,948 309,752 212,824 217,422 Supplies & Services 1,155,962 2,287,430 1,394,444 1,387,704 Other Expenses 5,573,926 6,108,701 4,521,934 4,521,934 Other Capital 197,893 - 193,469 193,469 Internal Service Charges - - - 3,478 Transfers Out 862,144 1,009,932 972,453 972,453 TOTAL EXPENDITURES 8,070,873$ 9,715,815$ 7,295,124$ 7,296,460$ REVENUES Revenue from Other Agencies (1,476,315) (1,549,195) (1,556,923) (1,556,923) Other Revenue (4,437,087) (5,753,926) (5,029,123) (5,029,123) Transfers In (1,004,027) (2,811,474) (1,284,078) (1,284,078) TOTAL REVENUES (6,917,429)$ (10,114,595)$ (7,870,124)$ (7,870,124)$ NET FUND ACTIVITY 1,153,444$ (398,780)$ (575,000)$ (573,664)$ BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 234-Advanced Life Support Program 1,435,274 1,438,292 1,556,923 1,560,013 235-Legislative Counsel Fund 33,950 41,050 5,000 - 341-Public Liability Trust 1,178,696 4,383,415 1,204,078 1,204,078 393-Technology Replacement 12,125 127,349 - - 398-Workers Compensation Fund 5,410,828 3,725,709 4,529,123 4,532,369 TOTAL EXPENDITURES 8,070,873$ 9,715,815$ 7,295,124$ 7,296,460$ REVENUES 234-Advanced Life Support Program (1,476,315) (1,549,287) (1,556,923) (1,556,923) 341-Public Liability Trust (500,681) (3,470,080) (1,284,078) (1,284,078) 398-Workers Compensation Fund (4,940,433) (5,095,228) (5,029,123) (5,029,123) TOTAL REVENUES (6,917,429)$ (10,114,595)$ (7,870,124)$ (7,870,124)$ NET FUND ACTIVITY 1,153,444$ (398,780)$ (575,000)$ (573,664)$ Ǧ Ǧ 161 312 BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES Supplies & Services - 36,915 5,280 125,300 Other Expenses - - - 63,200 Other Capital - 93,960 - - Utilities - 137,989 339,263 - Transfers Out - - 132,580 132,580 TOTAL EXPENDITURES -$ 268,864$ 477,123$ 321,080$ REVENUES Use of Money and Property - - (132,580) (132,580) Revenue from Other Agencies - - (339,263) (68,500) Transfers In - (154,370) (20,000) (120,000) TOTAL REVENUES -$ (154,370)$ (491,843)$ (321,080)$ NET FUND ACTIVITY -$ 114,494$ (14,720)$ -$ BUDGET CATEGORY FY 2016 ACTUAL FY 2017 ACTUAL FY 2018 ADOPTED FY 2019 PROPOSED EXPENDITURES 406-Chula Vista Muni Golf Course - 27,092 132,580 132,580 409-CV Elite Athlete Training Ctr - 241,772 344,543 188,500 TOTAL EXPENDITURES -$ 268,864$ 477,123$ 321,080$ REVENUES 406-Chula Vista Muni Golf Course - - (132,580) (132,580) 409-CV Elite Athlete Training Ctr - (154,370) (359,263) (188,500) TOTAL REVENUES -$ (154,370)$ (491,843)$ (321,080)$ NET FUND ACTIVITY -$ 114,494$ (14,720)$ -$ Ǧ ȋͶͲǦͶͲͻȌ Ǧ ȋͶͲǦͶͲͻȌ 162 313 ʹͲͳͻ ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ^ƵŵŵĂƌLJ /WZĞǀĞŶƵĞ^ƵŵŵĂƌLJ /W džƉĞŶĚŝƚƵƌĞ^ƵŵŵĂƌLJ ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽũĞĐƚƐ^ƵŵŵĂƌLJ &ŝǀĞͲzĞĂƌ/WWƌŽũĞĐƚ^ƵŵŵĂƌLJ^ĐŚĞĚƵůĞ 163 314 164 315 ʹͲͳͻ dŚĞĨŽůůŽǁŝŶŐŝƐĂŶŽǀĞƌǀŝĞǁŽĨƚŚĞĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚƵĚŐĞƚWƌŽŐƌĂŵ͘dŚĞŐŽĂůŽĨƚŚĞĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚ WƌŽŐƌĂŵ ;/WͿ ŝƐ ƚŽ ƉƌŽǀŝĚĞ ĨŽƌ ƚŚĞ ƐƵƐƚĂŝŶĂďůĞ ƉƌĞƐĞƌǀĂƚŝŽŶ ŽĨ ŝƚLJͲŽǁŶĞĚ ĂƐƐĞƚƐ Ăƚ ƚŚĞ ůŽǁĞƐƚ ĐŽƐƚ ĂŶĚ ƚŽ ůĞǀĞƌĂŐĞ ĨŝŶĂŶĐŝĂů ƐƚƌĂƚĞŐŝĞƐ ƚŽ ĂĚĚƌĞƐƐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ŶĞĞĚƐ ǁŝƚŚŝŶ Ă ƉƌŝŽƌŝƚŝnjĞĚ ĨƌĂŵĞǁŽƌŬ͕ǁŚŝĐŚŝŶĐůƵĚĞƐĂŶĂƐƐĞƐƐŵĞŶƚŽĨƚŚĞĂƐƐĞƚ͛Ɛ ĐŽŶĚŝƚŝŽŶ͕ ĐĂƉĂĐŝƚLJ ƚŽ ŵĞĞƚ ƐĞƌǀŝĐĞ ĚĞŵĂŶĚƐ͕ ƉƌŽďĂďŝůŝƚLJ ŽĨ ĨĂŝůƵƌĞ͕ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ƉƌĞƐĞƌǀĂƚŝŽŶ ƐƚƌĂƚĞŐŝĞƐ͕ĂŶĚĨƵŶĚŝŶŐĂǀĂŝůĂďŝůŝƚLJ͘dŚĞ/WŝƐĂůŝǀŝŶŐ ĚŽĐƵŵĞŶƚ ƵƐĞĚ ƚŽ ŝĚĞŶƚŝĨLJ ĐƵƌƌĞŶƚ ĂŶĚ ĨƵƚƵƌĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ĂŶĚ ƚŚĞ ďĂƐŝƐ ĨŽƌ ĚĞƚĞƌŵŝŶŝŶŐ ĂŶŶƵĂů ĐĂƉŝƚĂůďƵĚŐĞƚĞdžƉĞŶĚŝƚƵƌĞƐ͘dŚĞ/WĚŽĐƵŵĞŶƚĐĂŶďĞ ĨŽƵŶĚŝŶŝƚƐĞŶƚŝƌĞƚLJŽŶƚŚĞŝƚLJ͛ƐǁĞďƐŝƚĞ͘dŽĨŽůůŽǁŝƐĂ ƐƵŵŵĂƌLJŽĨƚŚĞĚŽĐƵŵĞŶƚ͘ ĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚ WƌŽũĞĐƚƐ ĂƌĞ ĚĞĨŝŶĞĚ ĂƐ ĐĂƉŝƚĂů ŝŶǀĞƐƚŵĞŶƚƐǁŝƚŚĂǀĂůƵĞŽĨΨϱϬ͕ϬϬϬŽƌŵŽƌĞĂŶĚĂ ŵŝŶŝŵƵŵ ƵƐĞĨƵů ůŝĨĞ ŽĨ ϱ LJĞĂƌƐ Ăƚ Ă ĨŝdžĞĚ ůŽĐĂƚŝŽŶ͘ ƋƵŝƉŵĞŶƚ͕ ŽƉĞƌĂƚŝŶŐ ĂŶĚ ŵĂŝŶƚĞŶĂŶĐĞ ĐŽƐƚƐ ĂƌĞ ďƵĚŐĞƚĞĚ ŝŶ ƚŚĞ ŝƚLJ͛Ɛ ŽƉĞƌĂƚŝŶŐ ďƵĚŐĞƚ͘ EĞǁ ŵĂŝŶƚĞŶĂŶĐĞĐŽƐƚƐĂƌĞŝŶĐůƵĚĞĚŝŶƚŚĞ/WďƵĚŐĞƚĂŶĚ ĂƉƉƌŽƉƌŝĂƚĞĚŝŶĨƵƚƵƌĞŽƉĞƌĂƚŝŶŐďƵĚŐĞƚĐLJĐůĞƐ͘ dŚĞ/WĚŽĐƵŵĞŶƚƉƌŽǀŝĚĞƐƚŚĞĐĂƉŝƚĂůƉƌŽũĞĐƚďƵĚŐĞƚ ĚĞƚĂŝů ĂŶĚ ƌĞƉŽƌƚŝŶŐ ďLJ ĂƐƐĞƚ ŵĂŶĂŐĞŵĞŶƚ ĐĂƚĞŐŽƌLJ͕ ĨƵŶĚŝŶŐ͕ ĂŶĚ ůŽĐĂƚŝŽŶ͘ dŚŝƐ ĨŽƌŵĂƚ ďĞƚƚĞƌ ĂŝĚƐ ƚŚĞ ĚĞĐŝƐŝŽŶͲŵĂŬŝŶŐƉƌŽĐĞƐƐĂƐŝƚĂůůŽǁƐƚŚĞŝƚLJŽƵŶĐŝůƚŽ ƌĞǀŝĞǁ ƉƌŽũĞĐƚƐ ƌĞĐŽŵŵĞŶĚĞĚ ŝŶ ĞĂĐŚ ĂƐƐĞƚ ŵĂŶĂŐĞŵĞŶƚ ƐLJƐƚĞŵ͕ ŐĂŝŶ ĂŶ ƵŶĚĞƌƐƚĂŶĚŝŶŐ ŽĨ ƚŚĞ ĐŽŶĚŝƚŝŽŶŽĨƚŚĞĂƐƐĞƚŝŶƌĞůĂƚŝŽŶƚŽƚŚĞŽǀĞƌĂůůƐLJƐƚĞŵ ĂŶĚƚŚĞďĂƐŝƐĨŽƌƚŚĞƌĞĐŽŵŵĞŶĚĂƚŝŽŶ͕ĂƐǁĞůůĂƐƚŚĞ ĂǀĂŝůĂďŝůŝƚLJŽĨĨƵŶĚŝŶŐƐŽƵƌĐĞƐ͘dŚĞƉƌŽƉŽƐĞĚƉƌŽũĞĐƚƐ͛ ĚĞƚĂŝů ƐŚĞĞƚƐ ǁŝƚŚŝŶ ĞĂĐŚ ĂƐƐĞƚ ŵĂŶĂŐĞŵĞŶƚ ƐLJƐƚĞŵ ƉƌŽǀŝĚĞƐĂĚĞƐĐƌŝƉƚŝŽŶ͕ůŽĐĂƚŝŽŶ͕ƉƌŽũĞĐƚŝŶƚĞŶƚ͕ƚLJƉĞŽĨ ƉƌŽũĞĐƚ͕ ůŝŶŬ ƚŽ ƚŚĞ ƐƚƌĂƚĞŐŝĐ ŐŽĂůƐ͕ ĂŶĚ ĨƵŶĚŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐŽǀĞƌƚŚĞůŝĨĞŽĨƚŚĞƉƌŽũĞĐƚ͘ /WWZK ^^ dŚĞ ŶŐŝŶĞĞƌŝŶŐ ĂŶĚ ĂƉŝƚĂů WƌŽũĞĐƚ ĞƉĂƌƚŵĞŶƚ ĂŶŶƵĂůůLJ ƉƌĞƉĂƌĞƐ Ă ĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚ ƵĚŐĞƚ ĨŽƌ ƚŚĞŝƚLJŽƵŶĐŝů͛ƐĂƉƉƌŽǀĂů͘dŚĞ/WďƵĚŐĞƚŝŶĐůƵĚĞƐĂŶ ĞƐƚŝŵĂƚĞĚĨŝǀĞͲLJĞĂƌĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ͘dŚĞ ŝƚLJŝƐĨĂĐĞĚǁŝƚŚƚŚĞĐŚĂůůĞŶŐĞŽĨŵĂŶĂŐŝŶŐĂƌĂŶŐĞŽĨ ĂŐŝŶŐ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ĂƐƐĞƚƐ ƚŚĂƚ ĂƌĞ ĐƌŝƚŝĐĂů ƚŽ ŵĂŝŶƚĂŝŶŝŶŐ ĂŶ ĂŐŝŶŐ ŝƚLJ ĂŶĚ ƐĞƌǀŝŶŐ ŶĞǁ ĚĞǀĞůŽƉŵĞŶƚ͘ DĂŬŝŶŐ ƐŽƵŶĚ ĚĞĐŝƐŝŽŶƐ ĂďŽƵƚ ĂƐƐĞƚ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ƌĞƉůĂĐĞŵĞŶƚ ƌĞƋƵŝƌĞƐ ŝŶĨŽƌŵĂƚŝŽŶ ĂďŽƵƚƚŚĞĂƐƐĞƚΖƐƉƌŽďĂďŝůŝƚLJŽĨĨĂŝůƵƌĞĂŶĚĐĂƉĂĐŝƚLJƚŽ ŵĞĞƚƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐŽĨƚŚĞƐLJƐƚĞŵ͘ KŶĂĐŽŶƚŝŶƵŽƵƐďĂƐŝƐ͕ƉƌŽũĞĐƚƉƌŽƉŽƐĂůƐĂƌĞĂĚĚĞĚƚŽ ƚŚĞ ŝƚLJ͛Ɛ ĐĂƉŝƚĂů ŝŵƉƌŽǀĞŵĞŶƚ ďƵĚŐĞƚ ĂŶĚ ƉƌŽũĞĐƚ ŵĂŶĂŐĞŵĞŶƚ ĚĂƚĂďĂƐĞ ;/W Ϳ ĨŽůůŽǁŝŶŐ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ĨƌŽŵ ŐƵŝĚŝŶŐ ĚŽĐƵŵĞŶƚƐ ;ƐĞĞ ůŝƐƚ ďĞůŽǁͿ ĂĚŽƉƚĞĚ ďLJ ƚŚĞ ŝƚLJ ŽƵŶĐŝů ĂŶĚ ĐŽŶĚŝƚŝŽŶ ĂƐƐĞƐƐŵĞŶƚƐ ƉĞƌĨŽƌŵĞĚ ďLJ ŶŐŝŶĞĞƌŝŶŐ Θ ĂƉŝƚĂů WƌŽũĞĐƚƐĂŶĚWƵďůŝĐtŽƌŬƐKƉĞƌĂƚŝŽŶƐƐƚĂĨĨ͘dŚŝƐLJĞĂƌ͛Ɛ /WƉƌŽĐĞƐƐŝŶĐůƵĚĞƐƚŚĞƉƌŽĐĞƐƐŽĨƌĂŶŬŝŶŐƉƌŽũĞĐƚƐĂŶĚ ƐĞƚƚŝŶŐ ĨƵŶĚŝŶŐ ƉƌŝŽƌŝƚŝĞƐ͘ &ƵŶĚŝŶŐ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ĂƌĞ ďĂƐĞĚ ŽŶ ƚŚĞ ĞǀĂůƵĂƚŝŽŶ ŽĨ ƚŚĞ ƉƌŽƉŽƐĞĚ ĂƐƐĞƚ͚Ɛ ƉƌŽďĂďŝůŝƚLJ ŽĨ ĨĂŝůƵƌĞ͕ ĐĂƉĂĐŝƚLJ͕ ĂŶĚ ůĞǀĞů ŽĨ ƐĞƌǀŝĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ ŝŶĐůƵĚŝŶŐ ĞĨĨŝĐŝĞŶĐLJ ŝŵƉƌŽǀĞŵĞŶƚƐ ŐĂŝŶĞĚ͘ ŶŽƚŚĞƌƚŽŽůƵƐĞĚŝŶƌĂŶŬŝŶŐĂŶĚĨŽƌŵƵůĂƚŝŶŐƚŚĞ/W ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐĂƌĞ'ƵŝĚŝŶŐŽĐƵŵĞŶƚƐĂƉƉƌŽǀĞĚďLJ ƚŚĞŝƚLJŽƵŶĐŝů͘dŚĞŝƚLJƵƚŝůŝnjĞƐ͞ŐƵŝĚŝŶŐĚŽĐƵŵĞŶƚƐ͟ ƚŽ ĞŶƐƵƌĞ ƉƌŽƉŽƐĞĚ /W ƉƌŽũĞĐƚƐ ĂƌĞ ĐŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ĞƐƚĂďůŝƐŚĞĚƉƌŽŐƌĂŵƉƌŝŽƌŝƚŝĞƐ͘dŚĞĨŽůůŽǁŝŶŐŝƐĂƉĂƌƚŝĂů ůŝƐƚŽĨŐƵŝĚŝŶŐĚŽĐƵŵĞŶƚƐ͕ǁŚŝĐŚŚĂǀĞŝŶĐůƵĚĞĚƉƵďůŝĐ 165 316 ʹͲͳͻ ŝŶƉƵƚ ĨƌŽŵ ŵƵůƚŝƉůĞ ƐƚĂŬĞŚŽůĚĞƌƐ ŝŶ ƚŚĞ ĐŽŵŵƵŶŝƚLJ͘ ĚĚŝƚŝŽŶĂůůLJ͕ ƉƌŽƉŽƐĞĚ /W ƉƌŽũĞĐƚƐ ĂƌĞ ƌĞǀŝĞǁĞĚ ĨŽƌ ĐŽŶƐŝƐƚĞŶĐLJ ǁŝƚŚ ƚŚĞ ŝƚLJ͛Ɛ 'ĞŶĞƌĂů WůĂŶ ĂŶĚ ƐƉĞĐŝĨŝĐ ƉůĂŶĂŶĚŝƚLJƉŽůŝĐŝĞƐ͘ x'ĞŶĞƌĂůWůĂŶ xZĞŐŝŽŶĂůdƌĂŶƐƉŽƌƚĂƚŝŽŶWƌŽŐƌĂŵ xŝŬĞǁĂLJDĂƐƚĞƌWůĂŶ x^ƚƌĞĞƚ^ĂǀĞƌŽŶĚŝƚŝŽŶ/ŶĚĞdžĂƚĂďĂƐĞ xƌĂŝŶĂŐĞDĂƐƚĞƌWůĂŶ xtĂƐƚĞǁĂƚĞƌDĂƐƚĞƌWůĂŶ x&ŝƌĞDĂƐƚĞƌWůĂŶ xƐƐĞƚDĂŶĂŐĞŵĞŶƚWůĂŶ xWĂƌŬƐDĂƐƚĞƌWůĂŶ xWĞĚĞƐƚƌŝĂŶDĂƐƚĞƌWůĂŶͬ^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽů xZĞĚĞǀĞůŽƉŵĞŶƚ/ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶ x^ŽƵƚŚǁĞƐƚhŶŝƚĞĚŝŶĐƚŝŽŶ^ƵƌǀĞLJZĞƐƵůƚƐ xdŚŝƌĚǀĞŶƵĞ^ƚƌĞĞƚƐĐĂƉĞDĂƐƚĞƌWůĂŶ x ŶǀŝƌŽŶŵĞŶƚĂůDŝƚŝŐĂƚŝŽŶWƌŽŐƌĂŵ xtĞƐƚĞƌŶd/&WƌŽŐƌĂŵ xd/&WƌŽŐƌĂŵ xZĞĚĞǀĞůŽƉŵĞŶƚ/ŵƉůĞŵĞŶƚĂƚŝŽŶWůĂŶ xdƌĂĨĨŝĐDŽŶŝƚŽƌŝŶŐWƌŽŐƌĂŵ x'ƌŽǁƚŚDĂŶĂŐĞŵĞŶƚKǀĞƌƐŝŐŚƚŽŵŵŝƚƚĞĞŶŶƵĂů ZĞƉŽƌƚ xKƚŚĞƌ^ƉĞĐŝĨŝĐWůĂŶƐ;Ğ͘Ő͘hƌďĂŶŽƌĞ^ƉĞĐŝĨŝĐWůĂŶ͕ WĂůŽŵĂƌ͕ĂLJĨƌŽŶƚĂŶĚDĂŝŶ^ƚƌĞĞƚ^ƉĞĐŝĨŝĐWůĂŶƐ h' d s >KWD Ed ůƚŚŽƵŐŚĂĐŽŵƉŽŶĞŶƚŽĨƚŚĞŝƚLJDĂŶĂŐĞƌ͛ƐŽǀĞƌĂůů ďƵĚŐĞƚ͕ ƚŚĞ /W ďƵĚŐĞƚ ŝƐ ĚĞǀĞůŽƉĞĚ ƐĞƉĂƌĂƚĞůLJ ďLJ ŶŐŝŶĞĞƌŝŶŐ ĂŶĚ ĂƉŝƚĂů WƌŽũĞĐƚƐ ƐƚĂĨĨ ŽŶ ĂŶ ĂŶŶƵĂů ďĂƐŝƐ͘ dŚĞ /W ďƵĚŐĞƚ ƉƌŽĐĞƐƐ ƌƵŶƐ ƉĂƌĂůůĞů ƚŽ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚƉƌŽĐĞƐƐĨŽƌƚŚĞŝƚLJ͛ƐŽƉĞƌĂƚŝŶŐďƵĚŐĞƚ͕ ĂŶĚƚŚĞLJĂƌĞƐƵďƐĞƋƵĞŶƚůLJƉƌĞƐĞŶƚĞĚƚŽŐĞƚŚĞƌĨŽƌŝƚLJ ŽƵŶĐŝůĂƉƉƌŽǀĂů͘ 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^ĞǁĞƌ^ĞƌǀŝĐĞZĞǀĞŶƵĞ d/& dƌĂĨĨŝĐ^ŝŐŶĂů dƌĂŶƐEĞƚ zŽƵƚŚ^ŽĐĐĞƌ'ƌĂŶƚ 167 318 ʹͲͳͻ dŚĞĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚƵĚŐĞƚŝƐƉƌŝŵĂƌŝůLJƐƵƉƉŽƌƚĞĚ ďLJ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ^ĂůĞƐ dĂdž ;dƌĂŶƐEĞƚͿ͕ 'ĂƐ dĂdž͕ DĞĂƐƵƌĞ W ĨƵŶĚƐ͕ ĂŶĚ ƌĞǀĞŶƵĞƐ ĨƌŽŵ ƚŚĞ ,ŝŐŚǁĂLJ ƌŝĚŐĞWƌŽŐƌĂŵ;,WͿĨŽƌtŝůůŽǁ^ƚƌĞĞƚĂŶĚ,ĞƌŝƚĂŐĞ ƌŝĚŐĞƐ͘ŚƵůĂsŝƐƚĂǀŽƚĞƌƐĂƉƉƌŽǀĞĚDĞĂƐƵƌĞWʹĂ ƚĞŵƉŽƌĂƌLJ͕ ϭϬͲLJĞĂƌ͕ ŚĂůĨͲĐĞŶƚ ƐĂůĞƐ ƚĂdž ƚŽ ĨƵŶĚ ŚŝŐŚ ƉƌŝŽƌŝƚLJ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ŶĞĞĚƐ͘ dƌĂŶƐEĞƚ ŝƐ ƚŚĞ ůĂƌŐĞƐƚ ƐƚĂďůĞ ƐŽƵƌĐĞ ŽĨ ƌĞǀĞŶƵĞƐ ĨŽƌ ĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚ ƉƌŽũĞĐƚƐ͘ůŽŶŐǁŝƚŚdƌĂŶƐEĞƚ͕'ĂƐdĂdžĨƵŶĚƐĐŽŶƚŝŶƵĞ ƚŽƉƌŽǀŝĚĞĂƐƚĞĂĚLJƐŽƵƌĐĞŽĨƌĞǀĞŶƵĞĨŽƌƐƚƌĞĞƚƌĞůĂƚĞĚ ƉƌŽũĞĐƚƐ͘ dŚĞ ,W ŝƐ Ă ƐĂĨĞƚLJ ƉƌŽŐƌĂŵ ƚŚĂƚ ƉƌŽǀŝĚĞƐ ĨĞĚĞƌĂůͲĂŝĚƚŽůŽĐĂůĂŐĞŶĐŝĞƐƚŽƌĞƉůĂĐĞĂŶĚƌĞŚĂďŝůŝƚĂƚĞ ĚĞĨŝĐŝĞŶƚůŽĐĂůůLJŽǁŶĞĚƉƵďůŝĐŚŝŐŚǁĂLJďƌŝĚŐĞƐ͘KƚŚĞƌ ŵĂũŽƌ ƌĞǀĞŶƵĞƐ ŝŶ ƚŚŝƐ LJĞĂƌ͛Ɛ ďƵĚŐĞƚ ŝŶĐůƵĚĞ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ĞǀĞůŽƉŵĞŶƚ /ŵƉĂĐƚ &ĞĞƐ ĨŽƌ ƐƚƌĞĞƚ ƌĞůĂƚĞĚƉƌŽũĞĐƚƐĂŶĚ^ĞǁĞƌ&ĂĐŝůŝƚLJZĞƉůĂĐĞŵĞŶƚĨƵŶĚƐ ĨŽƌŽŶŐŽŝŶŐƐĞǁĞƌƌĞŚĂďŝůŝƚĂƚŝŽŶƉƌŽũĞĐƚƐ͘ŽŵƉĞƚŝƚŝǀĞ ŐƌĂŶƚ ƌĞǀĞŶƵĞ ƐŽƵƌĐĞƐ ƌĞŵĂŝŶ ƐƚĞĂĚLJ ǁŝƚŚ ŐƌĂŶƚ ƌĞǀĞŶƵĞŐƌŽǁƚŚŽƉƉŽƌƚƵŶŝƚŝĞƐŝŶƚŚĞŝŵŵŝŶĞŶƚĨƵƚƵƌĞ͘ dƌĂŶƐƉŽƌƚĂƚŝŽŶŐƌĂŶƚƐŝŶĐůƵĚĞƚŚĞĐƚŝǀĞdƌĂŶƐƉŽƌƚĂƚŝŽŶ WƌŽŐƌĂŵ ĂŶĚ &ĞĚĞƌĂů ,ŝŐŚǁĂLJ ^ĂĨĞƚLJ /ŵƉƌŽǀĞŵĞŶƚ WƌŽŐƌĂŵ͘ZĞǀĞŶƵĞĚĞĐƌĞĂƐĞƐŝŶĐůƵĚĞƚŚĞĞŶĚŽĨĨƵŶĚƐ ĂǀĂŝůĂďůĞĨƌŽŵWƌŽƉŽƐŝƚŝŽŶϭ͘ dŚĞ ĨŽůůŽǁŝŶŐ ŝƐ Ă ďƌŝĞĨ ĚĞƐĐƌŝƉƚŝŽŶ ŽĨ ŬĞLJ ĨƵŶĚŝŶŐ ƐŽƵƌĐĞƐ ǁŚŝĐŚ ƐƵƉƉŽƌƚ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ ĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚƵĚŐĞƚ͗ s >KWD Ed/DWd& ^ dƌĂĨĨŝĐ^ŝŐŶĂů&ĞĞ dŚĞ dƌĂĨĨŝĐ ^ŝŐŶĂů &ĞĞ ŝƐ Ă ƚƌŝƉͲďĂƐĞĚ ĚĞǀĞůŽƉŵĞŶƚ ŝŵƉĂĐƚĨĞĞƚŚĂƚŝƐĐŚĂƌŐĞĚǁŝƚŚƚŚĞŝƐƐƵĂŶĐĞŽĨďƵŝůĚŝŶŐ ƉĞƌŵŝƚƐĨŽƌŶĞǁĐŽŶƐƚƌƵĐƚŝŽŶ͘dŚĞĨĞĞĐĂŶďĞƵƚŝůŝnjĞĚ ĨŽƌ ƚŚĞ ŝŶƐƚĂůůĂƚŝŽŶ ĂŶĚ ƵƉŐƌĂĚĞ ŽĨ ƚƌĂĨĨŝĐ ƐŝŐŶĂůƐ ƚŚƌŽƵŐŚŽƵƚƚŚĞŝƚLJ͘ƚŽƚĂůŽĨΨϭϯ͕ϰϴϲŝƐƉƌŽŐƌĂŵŵĞĚ ŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϵĨŽƌƚƌĂĨĨŝĐƐŝŐŶĂůŵŽĚŝĨŝĐĂƚŝŽŶƐĂŶĚ ƉĞĚĞƐƚƌŝĂŶŝŵƉƌŽǀĞŵĞŶƚƐ͘ dƌĂŶƐƉŽƌƚĂƚŝŽŶĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ;d/&Ϳ dŚĞŝƚLJ͛Ɛd/&WƌŽŐƌĂŵǁĂƐĞƐƚĂďůŝƐŚĞĚŽŶ:ĂŶƵĂƌLJϭϮ͕ ϭϵϴϴ͕ďLJKƌĚŝŶĂŶĐĞϮϮϱϭĨŽƌƚŚĞĐŽůůĞĐƚŝŽŶŽĨ ĚĞǀĞůŽƉŵĞŶƚ ŝŵƉĂĐƚ ĨĞĞƐ ƚŽ ďĞ ƵƐĞĚ ƚŽ ĐŽŶƐƚƌƵĐƚ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ĨĂĐŝůŝƚŝĞƐ ƚŽ ĂĐĐŽŵŵŽĚĂƚĞ ŝŶĐƌĞĂƐĞĚ ƚƌĂĨĨŝĐŐĞŶĞƌĂƚĞĚďLJŶĞǁĚĞǀĞůŽƉŵĞŶƚǁŝƚŚŝŶƚŚĞŝƚLJΖƐ ĞĂƐƚĞƌŶƚĞƌƌŝƚŽƌŝĞƐ͘ƚŽƚĂůŽĨΨϲϬϱ͕ϱϱϴŝƐƉƌŽŐƌĂŵŵĞĚ ĂƐƉĂƌƚŽĨƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ tĞƐƚĞƌŶ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ĞǀĞůŽƉŵĞŶƚ /ŵƉĂĐƚ &ĞĞ ;td/&Ϳ dŚĞŝƚLJ͛Ɛ td/& WƌŽŐƌĂŵǁĂƐ ĞƐƚĂďůŝƐŚĞĚ ŽŶDĂƌĐŚ ϭϴ͕ ϮϬϬϴ͕ ďLJ KƌĚŝŶĂŶĐĞƐ ϯϭϬϲ ƚŚƌŽƵŐŚ ϯϭϭϬ͘ dŚŝƐ ƉƌŽŐƌĂŵ ŝƐ ƐŝŵŝůĂƌ ƚŽ ƚŚĞ ĂƐƚĞƌŶ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ĞǀĞůŽƉŵĞŶƚ /ŵƉĂĐƚ &ĞĞ ;d/&Ϳ WƌŽŐƌĂŵ͕ ǁŚŝĐŚ ǁĂƐ ĞƐƚĂďůŝƐŚĞĚ ŽŶ :ĂŶƵĂƌLJ ϭϮ͕ ϭϵϴϴ͘ /Ŷ ϮϬϭϰ͕ ŝƚ ǁĂƐ ĚĞƚĞƌŵŝŶĞĚ ƚŚĂƚ ƚŚĞ ĂLJĨƌŽŶƚ͕ ƉƌĞǀŝŽƵƐůLJ ŝŶĐůƵĚĞĚ ŝŶ ƚŚĞtd/&͕ďĞƌĞŵŽǀĞĚĂŶĚĂŶĞǁ/&ĂƌĞĂĐŽǀĞƌŝŶŐ ŽŶůLJ ƚŚĞ ĂLJĨƌŽŶƚ ďĞ ĞƐƚĂďůŝƐŚĞĚ͘ EŽ td/& ŝƐ ƉƌŽŐƌĂŵŵĞĚĂƐƉĂƌƚŽĨƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ dĞůĞŐƌĂƉŚĂŶLJŽŶĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ dŚĞ ŝƚLJ͛Ɛ dĞůĞŐƌĂƉŚ ĂŶLJŽŶ /& ǁĂƐ ĞƐƚĂďůŝƐŚĞĚ ŽŶ ƵŐƵƐƚϳ͕ϭϵϵϬ͕ďLJKƌĚŝŶĂŶĐĞϮϯϴϰĨŽƌĐŽůůĞĐƚŝŽŶŽĨ ĚĞǀĞůŽƉŵĞŶƚ ŝŵƉĂĐƚ ĨĞĞƐ ƚŽ ďĞ ƵƐĞĚ ƚŽ ĐŽŶƐƚƌƵĐƚ ĚƌĂŝŶĂŐĞĂŶĚĐŚĂŶŶĞůŝŵƉƌŽǀĞŵĞŶƚƐĨŽƌƚŚĞdĞůĞŐƌĂƉŚ ĂŶLJŽŶ ĂƐŝŶ͘ EŽ dĞůĞŐƌĂƉŚ ĂŶLJŽŶ /& ĨƵŶĚƐ ĂĞ ƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ ^ĂůƚƌĞĞŬ^ĞǁĞƌ/& dŚĞŝƚLJ͛Ɛ^ĂůƚƌĞĞŬ^ĞǁĞƌ/&ǁĂƐĞƐƚĂďůŝƐŚĞĚŝŶϭϵϵϰ ďLJKƌĚŝŶĂŶĐĞϮϲϭϳƚŽĨŝŶĂŶĐĞƚŚĞƐĞǁĞƌŝŵƉƌŽǀĞŵĞŶƚƐ ǁŝƚŚŝŶƚŚĞ^ĂůƚƌĞĞŬ^ĞǁĞƌĂƐŝŶ͘EŽ^ĂůƚƌĞĞŬ^ĞǁĞƌ ĂƐŝŶĨƵŶĚƐĂƌĞƉƌŽŐƌĂŵŵĞĚĂƐƉĂƌƚŽĨƚŚĞĨŝƐĐĂůLJĞĂƌ ϮϬϭϵ/W͘ 'ZEd^ ĐƚŝǀĞdƌĂŶƐƉŽƌƚĂƚŝŽŶ'ƌĂŶƚWƌŽŐƌĂŵ dŚĞ >ĞŐŝƐůĂƚƵƌĞ ĐƌĞĂƚĞĚ ƚŚĞ ĐƚŝǀĞ dƌĂŶƐƉŽƌƚĂƚŝŽŶ WƌŽŐƌĂŵ;dWͿŝŶϮϬϭϯƚŽĞŶĐŽƵƌĂŐĞŝŶĐƌĞĂƐĞĚƵƐĞŽĨ ĂĐƚŝǀĞŵŽĚĞƐŽĨƚƌĂŶƐƉŽƌƚĂƚŝŽŶ͕ƐƵĐŚĂƐďŝŬŝŶŐĂŶĚ ǁĂůŬŝŶŐ͘ dŚĞ dW ĐŽŶƐŽůŝĚĂƚĞƐ ǀĂƌŝŽƵƐ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ƉƌŽŐƌĂŵƐ Ͳ ŝŶĐůƵĚŝŶŐ ƚŚĞ ĨĞĚĞƌĂů dƌĂŶƐƉŽƌƚĂƚŝŽŶ ůƚĞƌŶĂƚŝǀĞƐ WƌŽŐƌĂŵ͕ ƐƚĂƚĞ ŝĐLJĐůĞ dƌĂŶƐƉŽƌƚĂƚŝŽŶ ĐĐŽƵŶƚ͕ĂŶĚĨĞĚĞƌĂůĂŶĚƐƚĂƚĞ^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽů ƉƌŽŐƌĂŵƐ Ͳ ŝŶƚŽ Ă ƐŝŶŐůĞ ƉƌŽŐƌĂŵ ǁŝƚŚ ƌŽƵŐŚůLJ ΨϭϮϯ ŵŝůůŝŽŶƉĞƌLJĞĂƌĂǀĂŝůĂďůĞĨŽƌƉƌŽũĞĐƚƐĐŚŽƐĞŶƚŚƌŽƵŐŚĂ ĐŽŵƉĞƚŝƚŝǀĞƉƌŽŐƌĂŵĂĚŵŝŶŝƐƚĞƌĞĚďLJƚŚĞŽŵŵŝƐƐŝŽŶ͘ ^ ϭ ĚŝƌĞĐƚƐ ΨϭϬϬ ŵŝůůŝŽŶ ĂŶŶƵĂůůLJ ĨƌŽŵ ƚŚĞ ZŽĂĚ DĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ZĞŚĂďŝůŝƚĂƚŝŽŶ ĐĐŽƵŶƚ ƚŽ ƚŚĞ dW͕ ƐŝŐŶŝĨŝĐĂŶƚůLJĂƵŐŵĞŶƚŝŶŐƚŚĞĂǀĂŝůĂďůĞĨƵŶĚŝŶŐĨŽƌƚŚŝƐ ƉŽƉƵůĂƌƉƌŽŐƌĂŵ͘KŶ:ƵŶĞϮϴ͕ϮϬϭϳ͕ƚŚĞŽŵŵŝƐƐŝŽŶ ĂĚŽƉƚĞĚĂŶĂŵĞŶĚŵĞŶƚƚŽƚŚĞϮϬϭϳdW'ƵŝĚĞůŝŶĞƐĨŽƌ ƚŚĞĂƵŐŵĞŶƚĂƚŝŽŶŽĨƚŚĞƉƌŽŐƌĂŵǁŝƚŚĨƵŶĚƐĚĞƌŝǀĞĚ ĨƌŽŵ ^ ϭ͘ ^ƉĞĐŝĨŝĐĂůůLJ͕ ƚŚĞ dW ƵŐŵĞŶƚĂƚŝŽŶ 'ƵŝĚĞůŝŶĞƐƐĞƚĨŽƌƚŚƚŚĞƉƌŽĐĞƐƐƚŽĂƵŐŵĞŶƚƚŚĞϮϬϭϳ dWĨŽƌĨƵŶĚƐŵĂĚĞĂǀĂŝůĂďůĞĨŽƌĨŝƐĐĂůLJĞĂƌƐϮϬϭϴĂŶĚ ϮϬϭϵ͘ƚŽƚĂůŽĨΨϳϰϳ͕ϮϭϲŝƐƉƌŽŐƌĂŵŵĞĚĂƐƉĂƌƚŽĨƚŚĞ ĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ 168 319 ʹͲͳͻ ŝĐLJĐůĞdƌĂŶƐƉŽƌƚĂƚŝŽŶĐĐŽƵŶƚ dŚĞŝĐLJĐůĞdƌĂŶƐƉŽƌƚĂƚŝŽŶĐĐŽƵŶƚ;dͿŝƐĂŶĂŶŶƵĂů ƉƌŽŐƌĂŵ ƉƌŽǀŝĚŝŶŐ ƐƚĂƚĞ ĨƵŶĚƐ ĨŽƌ ĐŝƚLJ ĂŶĚ ĐŽƵŶƚLJ ƉƌŽũĞĐƚƐ ƚŚĂƚ ŝŵƉƌŽǀĞ ƐĂĨĞƚLJ ĂŶĚ ĐŽŶǀĞŶŝĞŶĐĞ ĨŽƌ ďŝĐLJĐůĞ ĐŽŵŵƵƚĞƌƐ͘ WƌŽũĞĐƚƐ ŵƵƐƚ ďĞ ĚĞƐŝŐŶĞĚ ĂŶĚ ĚĞǀĞůŽƉĞĚƚŽĂĐŚŝĞǀĞƚŚĞĨƵŶĐƚŝŽŶĂůĐŽŵŵƵƚŝŶŐŶĞĞĚƐ ĂŶĚƉŚLJƐŝĐĂůƐĂĨĞƚLJŽĨĂůůďŝĐLJĐůŝƐƚƐ͘EŽdWƌŽŐƌĂŵĂůů ĨŽƌWƌŽũĞĐƚƐŚĂƐďĞĞŶĂŶŶŽƵŶĐĞĚĨŽƌĨŝƐĐĂůLJĞĂƌϮϬϭϵ͘ dŚĞƌĞĨŽƌĞ͕ŶŽdĨƵŶĚƐĂƌĞƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞĨŝƐĐĂů LJĞĂƌϮϬϭϵ/W͘ ŽŵŵƵŶŝƚLJĞǀĞůŽƉŵĞŶƚůŽĐŬ'ƌĂŶƚ&ƵŶĚƐ ĂĐŚLJĞĂƌ͕ƚŚĞŝƚLJƌĞĐĞŝǀĞƐĂƉƉƌŽdžŝŵĂƚĞůLJΨϭ͘ϳŵŝůůŝŽŶ ŝŶŽŵŵƵŶŝƚLJĞǀĞůŽƉŵĞŶƚůŽĐŬ'ƌĂŶƚ;'ͿĨƵŶĚƐ͘ KĨƚŚŝƐĂŵŽƵŶƚĂƉƉƌŽdžŝŵĂƚĞůLJΨϭ͘ϯŵŝůůŝŽŶŝƐĂǀĂŝůĂďůĞ ĨŽƌ ĐŽŵŵƵŶŝƚLJ ĚĞǀĞůŽƉŵĞŶƚ ĂĐƚŝǀŝƚŝĞƐ͕ ǁŚŝĐŚ ŝŶĐůƵĚĞ ĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƉƌŽũĞĐƚƐ͘/ŶϮϬϬϲ͕ƚŚĞŝƚLJŽĨŚƵůĂ sŝƐƚĂƌĞĐĞŝǀĞĚĂ'^ĞĐƚŝŽŶϭϬϴůŽĂŶŝŶƚŚĞĂŵŽƵŶƚ ŽĨΨϵ͘ϱŵŝůůŝŽŶĨŽƌƚŚĞĐŽŵƉůĞƚŝŽŶŽĨƚŚĞĂƐƚůĞWĂƌŬ /ŶĨƌĂƐƚƌƵĐƚƵƌĞ WƌŽũĞĐƚƐ͘ dŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ƉĂLJŵĞŶƚ ŝƐ ƉĂŝĚ ďĂĐŬ ĨƌŽŵ ƚŚĞ ŝƚLJ͛Ɛ ĂŶŶƵĂů ĂůůŽƚŵĞŶƚ ŽĨ ' ĨƵŶĚƐ;ĂƉƉƌŽdžŝŵĂƚĞůLJΨϳϱϬ͕ϬϬϬĂŶŶƵĂůůLJͿ͘dŚŝƐƌĞĚƵĐĞƐ ƚŚĞĂŵŽƵŶƚŽĨ'ĨƵŶĚƐĂǀĂŝůĂďůĞĨŽƌŽƚŚĞƌĐĂƉŝƚĂů ƉƌŽũĞĐƚƐƚŽĂƉƉƌŽdžŝŵĂƚĞůLJΨϬ͘ϯͲϬ͘ϱŵŝůůŝŽŶĂŶŶƵĂůůLJĨŽƌ ĂƚŽƚĂůŽĨϭϬLJĞĂƌƐ͘ƚŽƚĂůŽĨΨϳϮϲ͕ϴϬϬŝŶ'ĨƵŶĚƐ ŚĂƐ ďĞĞŶ ƉƌŽŐƌĂŵŵĞĚ ŝŶ ƚŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϵ /W WƌŽŐƌĂŵ͘ ,ŝŐŚǁĂLJƌŝĚŐĞWƌŽŐƌĂŵ /ŶĐůƵĚĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚ WƌŽŐƌĂŵ ĂƌĞ ƚǁŽ ŵĂũŽƌ ďƌŝĚŐĞ ƌĞƉůĂĐĞŵĞŶƚ ƉƌŽũĞĐƚƐ͗ ^d>ͲϮϲϭ͕ ͞tŝůůŽǁ ^ƚƌĞĞƚ ƌŝĚŐĞ tŝĚĞŶŝŶŐ͕͟ Ăƚ ƚŚĞ ^ǁĞĞƚǁĂƚĞƌZŝǀĞƌĂŶĚ^dDͲϯϴϲ͕͞,ĞƌŝƚĂŐĞZŽĂĚƌŝĚŐĞ ZĞƉůĂĐĞŵĞŶƚ͕͟ĂƚƚŚĞKƚĂLJZŝǀĞƌ͘ŽƚŚƉƌŽũĞĐƚƐǁŝůůďĞ ĚĞƐŝŐŶĞĚ ĂŶĚ ĐŽŶƐƚƌƵĐƚĞĚ ƉƌŝŵĂƌŝůLJ ƵƐŝŶŐ &ĞĚĞƌĂů ,ŝŐŚǁĂLJ ƌŝĚŐĞ WƌŽŐƌĂŵ ;,WͿ ĨƵŶĚƐ ƚŽƚĂůŝŶŐ ĂƉƉƌŽdžŝŵĂƚĞůLJΨϰϯ͘ϯŵŝůůŝŽŶ͕ůĞǀĞƌĂŐĞĚǁŝƚŚĂƌĞůĂƚŝǀĞůLJ ƐŵĂůůůŽĐĂůd/&ĐŽŶƚƌŝďƵƚŝŽŶŽĨĂďŽƵƚΨϲ͘ϳŵŝůůŝŽŶ͘dŚĞ ĞŶǀŝƌŽŶŵĞŶƚĂůĚŽĐƵŵĞŶƚĂƚŝŽŶĂŶĚĞŶŐŝŶĞĞƌŝŶŐĚĞƐŝŐŶ ĨŽƌ ^dDͲϯϲϰ ǁĂƐ ƉĂƌƚŝĂůůLJ ĨƵŶĚĞĚ ďLJ Ă ΨϮ͘ϱ ŵŝůůŝŽŶ ^& d Ͳ>hŐƌĂŶƚ͘ dŚĞ,ŝŐŚǁĂLJƌŝĚŐĞWƌŽŐƌĂŵ;,WͿƉƌŽǀŝĚĞƐĨƵŶĚŝŶŐƚŽ ĞŶĂďůĞƐƚĂƚĞƐƚŽŝŵƉƌŽǀĞƚŚĞĐŽŶĚŝƚŝŽŶŽĨƚŚĞŝƌŚŝŐŚǁĂLJ ďƌŝĚŐĞƐ ƚŚƌŽƵŐŚ ƌĞƉůĂĐĞŵĞŶƚ͕ ƌĞŚĂďŝůŝƚĂƚŝŽŶ͕ ĂŶĚ ƐLJƐƚĞŵĂƚŝĐƉƌĞǀĞŶƚŝǀĞŵĂŝŶƚĞŶĂŶĐĞŽĨĚĞĨŝĐŝĞŶƚďƌŝĚŐĞƐ͘ dŚĞĞdžŝƐƚŝŶŐďƌŝĚŐĞĂƚtŝůůŽǁ^ƚƌĞĞƚǁĂƐĐŽŶƐƚƌƵĐƚĞĚŝŶ ϭϵϰϬĂŶĚ͕ƚŚƌŽƵŐŚĂƐĞƌŝĞƐŽĨƐƚƵĚŝĞƐ͕ǁĂƐĚĞƚĞƌŵŝŶĞĚ ƚŚĂƚŝƚǁĂƐŶŽƚƉƌĂĐƚŝĐĂůƚŽƌĞŚĂďŝůŝƚĂƚĞƚŚĞďƌŝĚŐĞĂŶĚ ĨƵŶĚŝŶŐ ĨŽƌ ĨƵůů ƌĞƉůĂĐĞŵĞŶƚ ǁĂƐ ƐƵďƐĞƋƵĞŶƚůLJ ĂƉƉƌŽǀĞĚ ďLJ ƚŚĞ &ĞĚĞƌĂů ,ŝŐŚǁĂLJ ĚŵŝŶŝƐƚƌĂƚŝŽŶ ;&,tͿĂŶĚĂůƚƌĂŶƐ͕ǁŚŝĐŚĂĚŵŝŶŝƐƚĞƌƐƚŚĞ,W'ƌĂŶƚ WƌŽŐƌĂŵŝŶĂůŝĨŽƌŶŝĂ͘dŚĞĞdžŝƐƚŝŶŐďƌŝĚŐĞĂƚ,ĞƌŝƚĂŐĞ ZŽĂĚǁĂƐďƵŝůƚĂƐĂŶŝŶƚĞƌŝŵĨĂĐŝůŝƚLJŝŶϭϵϵϯǁŚĞŶŚĞĂǀLJ ĨůŽŽĚǁĂƚĞƌƐĚĞƐƚƌŽLJĞĚƚŚĞƌŝǀĞƌĐƌŽƐƐŝŶŐ͖ƚŚŝƐŝŶƚĞƌŝŵ ďƌŝĚŐĞǁĂƐƌĞĐĞŶƚůLJĂƉƉƌŽǀĞĚďLJ&,tĂŶĚĂůƚƌĂŶƐĨŽƌ ƌĞƉůĂĐĞŵĞŶƚďĞĐĂƵƐĞŝƚŝƐŝŶĂĚĞƋƵĂƚĞĨŽƌƉĞĂŬƚƌĂĨĨŝĐ ǀŽůƵŵĞƐ͕ ĚŽĞƐ ŶŽƚ ĂĐĐŽŵŵŽĚĂƚĞ ƉĞĚĞƐƚƌŝĂŶƐ͕ ĂŶĚ ŝƐ ƵŶĂďůĞ ƚŽ ĐŽŶǀĞLJ ƚŚĞ ϱϬͲLJĞĂƌ ƐƚŽƌŵ ǁŝƚŚŽƵƚ ďĞŝŶŐ ŽǀĞƌƚŽƉƉĞĚ͘ƉƉƌŽdžŝŵĂƚĞůLJΨϭ͘ϲŵŝůůŝŽŶŝŶ,WĨƵŶĚƐŝƐ ƉƌŽŐƌĂŵŵĞĚĂƐƉĂƌƚŽĨƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ ,ŝŐŚǁĂLJ^ĂĨĞƚLJ/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ dŚĞ,ŝŐŚǁĂLJ^ĂĨĞƚLJ/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ;,^/WͿǁĂƐ ĞƐƚĂďůŝƐŚĞĚ ƚŽ ĂƚƚĂŝŶ Ă ƐŝŐŶŝĨŝĐĂŶƚ ƌĞĚƵĐƚŝŽŶ ŝŶ ƚƌĂĨĨŝĐ ĨĂƚĂůŝƚŝĞƐĂŶĚƐĞƌŝŽƵƐŝŶũƵƌŝĞƐŽŶĂůůƉƵďůŝĐƌŽĂĚƐƚŚƌŽƵŐŚ ƚŚĞ ŝŵƉůĞŵĞŶƚĂƚŝŽŶ ŽĨ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞͲƌĞůĂƚĞĚ ŚŝŐŚǁĂLJ ƐĂĨĞƚLJŝŵƉƌŽǀĞŵĞŶƚƐ͘ƚŽƚĂůŽĨΨϭϯϱ͕ϱϴϵŝŶ,^/W ĨƵŶĚŝŶŐŚĂƐďĞĞŶƉƌŽŐƌĂŵŵĞĚĂƐƉĂƌƚŽĨƚŚĞĨŝƐĐĂůLJĞĂƌ ϮϬϭϵ/W͘ EĞŝŐŚďŽƌŚŽŽĚZĞŝŶǀĞƐƚŵĞŶƚWƌŽŐƌĂŵ dŚĞ EĞŝŐŚďŽƌŚŽŽĚ ZĞŝŶǀĞƐƚŵĞŶƚ WƌŽŐƌĂŵ ;E WͿ ƉƌŽǀŝĚĞƐ ŐƌĂŶƚ ĨƵŶĚƐ ƚŽ ŽƵŶƚLJ ĚĞƉĂƌƚŵĞŶƚƐ͕ ƉƵďůŝĐ ĂŐĞŶĐŝĞƐ͕ ĂŶĚ ƚŽ ŶŽŶͲƉƌŽĨŝƚ ĐŽŵŵƵŶŝƚLJ ŽƌŐĂŶŝnjĂƚŝŽŶƐ ĨŽƌ ŽŶĞͲƚŝŵĞ ĐŽŵŵƵŶŝƚLJ͕ ƐŽĐŝĂů͕ ĞŶǀŝƌŽŶŵĞŶƚĂů͕ ĞĚƵĐĂƚŝŽŶĂů͕ ĐƵůƚƵƌĂů Žƌ ƌĞĐƌĞĂƚŝŽŶĂů ŶĞĞĚƐ͘ EŽ E W ĨƵŶĚƐĂƌĞƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ ^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽů dŚĞ^ƚĂƚĞ^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽů;^ZϮƐͿƉƌŽŐƌĂŵŐŽĂůŝƐ ƚŽƌĞĚƵĐĞŝŶũƵƌŝĞƐĂŶĚĨĂƚĂůŝƚŝĞƐƚŽƐĐŚŽŽůĐŚŝůĚƌĞŶĂŶĚƚŽ ĞŶĐŽƵƌĂŐĞ ŝŶĐƌĞĂƐĞĚ ǁĂůŬŝŶŐ ĂŶĚ ďŝĐLJĐůŝŶŐ ĂŵŽŶŐ ƐƚƵĚĞŶƚƐ͘ ŽŵƉĞƚŝƚŝǀĞ ŐƌĂŶƚƐ ĂƌĞ ĂǀĂŝůĂďůĞ ƚŽ ůŽĐĂů ŐŽǀĞƌŶŵĞŶƚĂŐĞŶĐŝĞƐĨŽƌĐŽŶƐƚƌƵĐƚŝŽŶŽĨĨĂĐŝůŝƚŝĞƐƚŚĂƚ ĞŶŚĂŶĐĞƐĂĨĞƚLJĨŽƌƉĞĚĞƐƚƌŝĂŶƐĂŶĚďŝĐLJĐůŝƐƚƐ͕ƉƌŝŵĂƌŝůLJ ƐƚƵĚĞŶƚƐŝŶŐƌĂĚĞƐ<ͲϭϮǁŚŽǁĂůŬŽƌďŝĐLJĐůĞƚŽƐĐŚŽŽů͘ EŽ^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽůĨƵŶĚƐĂƌĞƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞ ĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘dŚĞĐƚŝǀĞdƌĂŶƐƉŽƌƚĂƚŝŽŶWƌŽŐƌĂŵ ;dWͿĐŽŶƐŽůŝĚĂƚĞĚƚŚĞ^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽůWƌŽŐƌĂŵ ĂůŽŶŐǁŝƚŚĂŶƵŵďĞƌŽĨŽƚŚĞƌƉƌŽŐƌĂŵƐŝŶƚŽŽŶĞ ƉƌŽŐƌĂŵ͘ ^ŵĂƌƚ'ƌŽǁƚŚ/ŶĐĞŶƚŝǀĞ'ƌĂŶƚ dŚĞdƌĂŶƐEĞƚ^ŵĂƌƚ'ƌŽǁƚŚ/ŶŝƚŝĂƚŝǀĞWƌŽŐƌĂŵ;^'/WͿ ĨƵŶĚƐ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ƌĞůĂƚĞĚ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ ŝŵƉƌŽǀĞŵĞŶƚƐĂŶĚƉůĂŶŶŝŶŐĞĨĨŽƌƚƐƚŚĂƚƐƵƉƉŽƌƚƐŵĂƌƚ ŐƌŽǁƚŚĚĞǀĞůŽƉŵĞŶƚ͘dŚĞ^'/WǁŝůůĂǁĂƌĚƚǁŽƉĞƌĐĞŶƚ ŽĨƚŚĞĂŶŶƵĂůdƌĂŶƐEĞƚƌĞǀĞŶƵĞƐĨŽƌƚŚĞŶĞdžƚϰϬLJĞĂƌƐ ƚŽůŽĐĂůŐŽǀĞƌŶŵĞŶƚƐƚŚƌŽƵŐŚĂĐŽŵƉĞƚŝƚŝǀĞŐƌĂŶƚ 169 320 ʹͲͳͻ ƉƌŽŐƌĂŵ ƚŽ ƐƵƉƉŽƌƚ ƉƌŽũĞĐƚƐ ƚŚĂƚ ǁŝůů ŚĞůƉ ďĞƚƚĞƌ ĐŽŽƌĚŝŶĂƚĞƚƌĂŶƐƉŽƌƚĂƚŝŽŶĂŶĚůĂŶĚƵƐĞŝŶƚŚĞ^ĂŶŝĞŐŽ ƌĞŐŝŽŶ͘ /ƚ ŝƐ ĂŶƚŝĐŝƉĂƚĞĚ ƚŚĂƚ ^E' ǁŝůů ƌĞůĞĂƐĞ Ă EŽƚŝĐĞŽĨ&ƵŶĚŝŶŐǀĂŝůĂďŝůŝƚLJĚƵƌŝŶŐĨŝƐĐĂůLJĞĂƌϮϬϭϴĨŽƌ ƚŚĞ ^'/W͘ ^ƚĂĨĨ ǁŝůů ďĞ ƐƵďŵŝƚƚŝŶŐ ĨŽƌ ĂŶ ĐƚŝǀĞ ^'/W ŐƌĂŶƚĨŽƌƚŚĞdŚŝƌĚǀĞŶƵĞ^ƚƌĞĞƚƐĐĂƉĞ/ŵƉƌŽǀĞŵĞŶƚ WƌŽũĞĐƚWŚĂƐĞ///ĨƌŽŵ͞&͟^ƚƌĞĞƚƚŽ͞ ͟^ƚƌĞĞƚ͘EŽ^'/W ĨƵŶĚƐĂƌĞƉƌŽŐƌĂŵŵĞĚĂƐƉĂƌƚŽĨƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ /W͘ ZƵďďĞƌŝnjĞĚWĂǀĞŵĞŶƚ;dZWͿ'ƌĂŶƚ dŚĞĞƉĂƌƚŵĞŶƚŽĨZĞƐŽƵƌĐĞƐZĞĐLJĐůŝŶŐĂŶĚZĞĐŽǀĞƌLJ ;ĂůZĞĐLJĐůĞͿŽĨĨĞƌƐĨƵŶĚŝŶŐŽƉƉŽƌƚƵŶŝƚŝĞƐĂƵƚŚŽƌŝnjĞĚďLJ ůĞŐŝƐůĂƚŝŽŶ ƚŽ ĂƐƐŝƐƚ ƉƵďůŝĐ ĂŶĚ ƉƌŝǀĂƚĞ ĞŶƚŝƚŝĞƐ ŝŶ ƚŚĞ ƐĂĨĞĂŶĚĞĨĨĞĐƚŝǀĞŵĂŶĂŐĞŵĞŶƚŽĨƚŚĞǁĂƐƚĞƐƚƌĞĂŵ͘ ĂůZĞĐLJĐůĞ͛Ɛ ƚŝƌĞ ŐƌĂŶƚ ƉƌŽŐƌĂŵƐ ĂƌĞ ĚĞƐŝŐŶĞĚ ƚŽ 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ƌĞůĞĂƐĞĚ ŝŶ ůĂƚĞ Ɖƌŝů ϮϬϭϬ ŝŶ ŵŽŶƚŚůLJ ŝŶƐƚĂůůŵĞŶƚƐ͘ƐĂƌĞƐƵůƚ͕ƚŚĞ^ƚĂƚĞƉƌŽǀŝĚĞĚĂŶ ĂĚĚŝƚŝŽŶĂů LJĞĂƌ ŽĨ ĞdžƉĞŶĚŝƚƵƌĞ ĨŽƌ WƌŽƉ ϭ ĨƵŶĚƐ ƌĞĐĞŝǀĞĚŝŶĨŝƐĐĂůLJĞĂƌϮϬϭϬ͘dŚĞŝƚLJƐƉĞŶƚƚŚĞƐĞĐŽŶĚ ĂůůŽĐĂƚŝŽŶŽĨWƌŽƉϭĨƵŶĚƐƉƌŝŽƌƚŽ:ƵŶĞϮϬϭϰ͘ 'ĂƐdĂdž dŚĞƐƚĂƚĞŽĨĂůŝĨŽƌŶŝĂŝŵƉŽƐĞƐƉĞƌͲŐĂůůŽŶĞdžĐŝƐĞƚĂdžĞƐ ŽŶŐĂƐŽůŝŶĞĂŶĚĚŝĞƐĞůĨƵĞů͕ƐĂůĞƐƚĂdžĞƐŽŶŐĂƐŽůŝŶĞĂŶĚ ĚŝĞƐĞůĨƵĞůĂŶĚƌĞŐŝƐƚƌĂƚŝŽŶƚĂdžĞƐŽŶŵŽƚŽƌǀĞŚŝĐůĞƐǁŝƚŚ ĂůůŽĐĂƚŝŽŶƐĚĞĚŝĐĂƚĞĚƚŽƚƌĂŶƐƉŽƌƚĂƚŝŽŶƉƵƌƉŽƐĞƐ͘dŚĞƐĞ 170 321 ʹͲͳͻ ĂůůŽĐĂƚŝŽŶƐĨůŽǁƚŚƌŽƵŐŚƚŚĞ,ŝŐŚǁĂLJhƐĞƌƐdĂdž ĐĐŽƵŶƚ;,hdͿ͕ƚŚĞĨĂŵŝůŝĂƌŐĂƐŽůŝŶĞƚĂdžƌĞǀĞŶƵĞƐƚŚĂƚ ŚĂǀĞďĞĞŶŝŶƉůĂĐĞĨŽƌĚĞĐĂĚĞƐ͕ĂŶĚƚŚĞZŽĂĚ DĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ZĞŚĂďŝůŝƚĂƚŝŽŶ ĐĐŽƵŶƚ ǁŚŝĐŚ ĂůůŽĐĂƚĞƐŵƵĐŚŽƌƚŚĞƌĞǀĞŶƵĞĨƌŽŵƚŚĞZŽĂĚZĞƉĂŝƌ ĂŶĚ ĐĐŽƵŶƚĂďŝůŝƚLJ Đƚ ŽĨ ϮϬϭϳ ;^ϭ ĞĂůůͿ͘ dŚĞ ^ϭ ĞĂůů ŝƐ Ă ƐŝŐŶŝĨŝĐĂŶƚ ŶĞǁ ŝŶǀĞƐƚŵĞŶƚ ŝŶ ĂůŝĨŽƌŶŝĂ͛Ɛ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶ ƐLJƐƚĞŵƐ͘ dŚĞ Đƚ ŝŶĐƌĞĂƐĞƐ ƉĞƌ ŐĂůůŽŶ ĨƵĞů ĞdžĐŝƐĞ ƚĂdžĞƐ͕ ĚŝĞƐĞů ĨƵĞů ƐĂůĞƐ ƚĂdžĞƐ ĂŶĚ ǀĞŚŝĐůĞ ƌĞŐŝƐƚƌĂƚŝŽŶ ƚĂdžĞƐ͕ ƐƚĂďŝůŝnjĞƐ ƚŚĞ ƉƌŽďůĞŵĂƚŝĐ ƉƌŝĐĞͲ ďĂƐĞĚ ĨƵĞů ƚĂdž ƌĂƚĞƐ ĂŶĚ ƉƌŽǀŝĚĞƐ ĨŽƌ ŝŶĨůĂƚŝŽŶĂƌLJ 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ƌĞǀĞŶƵĞ ƐŽƵƌĐĞ ƌĞĐĞŝǀĞĚ ĨƌŽŵ ƚŚĞ ŽǁŶĞƌ Žƌ ƉĞƌƐŽŶĂƉƉůLJŝŶŐĨŽƌĂƉĞƌŵŝƚƚŽĚĞǀĞůŽƉŽƌŵŽĚŝĨLJƚŚĞ ƵƐĞŽĨĂŶLJƌĞƐŝĚĞŶƚŝĂů͕ĐŽŵŵĞƌĐŝĂů͕ŝŶĚƵƐƚƌŝĂůŽƌŽƚŚĞƌ ƉƌŽƉĞƌƚLJƚŚĂƚŵĂLJŝŶĐƌĞĂƐĞƚŚĞǀŽůƵŵĞŽĨĨůŽǁŝŶƚŚĞ ŝƚLJ͛ƐƐĞǁĞƌƐLJƐƚĞŵ͘dŚĞĨƵŶĚƐŵĂLJďĞƵƐĞĚĨŽƌ͗;ϭͿƚŽ ƌĞƉĂŝƌ͕ ƌĞƉůĂĐĞ Žƌ ĞŶůĂƌŐĞ ƚƌƵŶŬ ƐĞǁĞƌ ĨĂĐŝůŝƚŝĞƐ ƚŽ ĞŶŚĂŶĐĞ ĞĨĨŝĐŝĞŶĐLJ ŽĨ ƵƚŝůŝnjĂƚŝŽŶ ĂŶĚͬŽƌ ĂĚĞƋƵĂĐLJ ŽĨ ĐĂƉĂĐŝƚLJƚŽƐĞƌǀĞƚŚĞŶĞĞĚƐŽĨƚŚĞŝƚLJ͕Žƌ;ϮͿƚŽƉůĂŶ ĂŶĚͬŽƌ ĞǀĂůƵĂƚĞ ĂŶLJ ĨƵƚƵƌĞ ƉƌŽƉŽƐĂůƐ ĨŽƌ ĂƌĞĂͲǁŝĚĞ ƐĞǁĂŐĞƚƌĞĂƚŵĞŶƚĂŶĚͬŽƌǁĂƚĞƌƌĞĐůĂŵĂƚŝŽŶƐƐLJƐƚĞŵƐ ĂŶĚĨĂĐŝůŝƚŝĞƐ͘EŽdƌƵĐŬ^ĞǁĞƌĂƉŝƚĂůZĞƐĞƌǀĞĨƵŶĚƐĂƌĞ ƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ ^ĞǁĞƌ&ĂĐŝůŝƚLJZĞƉůĂĐĞŵĞŶƚ&ƵŶĚ dŚĞ ^ĞǁĞƌ &ĂĐŝůŝƚLJ ZĞƉůĂĐĞŵĞŶƚ &ƵŶĚ ŝƐ Ă ĨĞĞ ďĂƐĞĚ ƌĞǀĞŶƵĞƐŽƵƌĐĞƚŚĂƚĂůůƉƌŽƉĞƌƚŝĞƐƉĂLJĞĂĐŚŵŽŶƚŚĂƐ ƉĂƌƚŽĨƚŚĞŝƌƐĞǁĞƌďŝůůƐ͘dŚĞĨƵŶĚƐĐĂŶďĞƵƚŝůŝnjĞĚƚŽ 171 322 ʹͲͳͻ ƌĞƉůĂĐĞ͕ƌĞŚĂďŝůŝƚĂƚĞŽƌƵƉŐƌĂĚĞĞdžŝƐƚŝŶŐƐĞǁĞƌĨĂĐŝůŝƚŝĞƐ͘ ƚŽƚĂůŽĨΨϮ͘ϳŵŝůůŝŽŶŝƐƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌ ϮϬϭϵ/W͘ ^ĞǁĞƌ/ŶĐŽŵĞ&ƵŶĚ dŚŝƐĨƵŶĚŝƐƵƐĞĚƚŽĂĐĐŽƵŶƚĨŽƌĂůůƌĞǀĞŶƵĞƐĐŽůůĞĐƚĞĚ ƚŽ ƌĞĐŽǀĞƌ ƚŚĞ ŝƚLJ͛Ɛ ĐŽƐƚƐ ŝŶĐƵƌƌĞĚ ĐŽŶƐƚƌƵĐƚŝŶŐ ƚŚĞ ƉƵďůŝĐǁĂƐƚĞǁĂƚĞƌƐLJƐƚĞŵ͘dŚĞĨƵŶĚƐĂƌĞĐŽůůĞĐƚĞĚĨƌŽŵ ŶĞǁƉƌŽƉĞƌƚŝĞƐƌĞĐĞŝǀŝŶŐĂƉĞƌŵŝƚƚŽĐŽŶŶĞĐƚƚŽƚŚĞ ŝƚLJ͛ƐǁĂƐƚĞǁĂƚĞƌƐLJƐƚĞŵ͘dŚĞĨƵŶĚƐĐĂŶďĞƵƐĞĚĨŽƌ ƚŚĞ ĂĐƋƵŝƐŝƚŝŽŶ͕ ƌĞĐŽŶƐƚƌƵĐƚŝŽŶ͕ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ŽƉĞƌĂƚŝŽŶŽĨƐĂŶŝƚĂƚŝŽŶŽƌƐĞǁĞƌĂŐĞĨĂĐŝůŝƚŝĞƐ͘ƚŽƚĂůŽĨ ΨϮŵŝůůŝŽŶŝƐƉƌŽŐƌĂŵŵĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϵ/W͘ 172 323 ʹͲͳͻ dŚĞϮϬϭϵͲϮϬϮϯĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ;/WͿŝƐĂ ĨŝǀĞͲLJĞĂƌĞdžƉĞŶĚŝƚƵƌĞƉůĂŶƚŚĂƚƉƌŽǀŝĚĞƐƚŚĞŝƚLJǁŝƚŚĂ ĨŝŶĂŶĐŝĂůƐƚƌĂƚĞŐLJĨŽƌŝŶĨƌĂƐƚƌƵĐƚƵƌĞŝŵƉƌŽǀĞŵĞŶƚƐ͘dŚĞ ĞƐƚŝŵĂƚĞĚĨŝǀĞͲLJĞĂƌƉƌŽũĞĐƚƐƵŵŵĂƌLJƌĞƉŽƌƚŝƐŝŶĐůƵĚĞĚ ĂƚƚŚĞĞŶĚŽĨƚŚŝƐĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ;/WͿ ƐĞĐƚŝŽŶ͘ dŚĞ /W ŝŶĐůƵĚĞƐ ĨƵŶĚŝŶŐ ĨŽƌ ƉƌŽũĞĐƚƐ ĂŶĚ ƉƌŽŐƌĂŵƐŝŶǀĂƌŝŽƵƐŐĞŽŐƌĂƉŚŝĐĂƌĞĂƐŽĨƚŚĞŝƚLJ͘dŚĞ ƉƌŽƉŽƐĞĚĨŝƐĐĂůLJĞĂƌϮϬϭϵĐĂƉŝƚĂůĞdžƉĞŶĚŝƚƵƌĞďƵĚŐĞƚŝƐ ĂƉƉƌŽdžŝŵĂƚĞůLJ ΨϮϵ͘ϯ ŵŝůůŝŽŶ͘ dŚĞ ĨŽƌĞĐĂƐƚĞĚ ĨŝǀĞͲLJĞĂƌ ƉƌŽŐƌĂŵŝƐĞƐƚŝŵĂƚĞĚĂƚΨϵϭŵŝůůŝŽŶ͘dŚĞϮϬϭϵͲϮϬϮϯ/W ƉƌŽŐƌĂŵ ƌĞĨůĞĐƚƐ ƚŚĞ ĂĐƚŝŽŶƐ ƚĂŬĞŶ ďLJ ŽƵŶĐŝů ĂŶĚ ĚĞǀĞůŽƉĞĚŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚŽƵŶĐŝůĂĚŽƉƚĞĚƉŽůŝĐŝĞƐ ĂŶĚŐƵŝĚŝŶŐĚŽĐƵŵĞŶƚƐ;ƐƵĐŚĂƐĂŶĚŶŽƚůŝŵŝƚĞĚƚŽƚŚĞ ŝƚLJ͛Ɛ'ĞŶĞƌĂůWůĂŶ͕DĂƐƚĞƌWůĂŶƐ͕^ƉĞĐŝĨŝĐWůĂŶƐĂŶĚƚŚĞ ZĞŐŝŽŶĂů dƌĂŶƐƉŽƌƚĂƚŝŽŶ WůĂŶͿ ĂƐ ǁĞůů ĂƐ ŐĞŶĞƌĂůůLJ ĂĐĐĞƉƚĞĚ ĂĐĐŽƵŶƚŝŶŐ ƉƌŝŶĐŝƉůĞƐ͘ KǀĞƌĂůů͕ ƚŚĞ ϱͲLJĞĂƌ ƉƌŽŐƌĂŵ ĐŽŶƚŝŶƵĞƐ ƚŽ ƚƌĞŶĚ ĨĂǀŽƌĂďůLJ ĚĞƐƉŝƚĞ ƚŚĞ ĞĐŽŶŽŵLJĂŶĚƚŚĞĨŝƐĐĂůĐŽŶƐƚƌĂŝŶƚƐĨĂĐŝŶŐƚŚĞŝƚLJ͘ WƌŽũĞĐƚƐŝŶƚŚŝƐLJĞĂƌ͛ƐĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚƵĚŐĞƚŚĂǀĞ ďĞĞŶ ƐŽƌƚĞĚ ďLJ ƚŚĞ ŶŝŶĞͲĂƐƐĞƚ ŵĂŶĂŐĞŵĞŶƚ ƐLJƐƚĞŵƐ ŝĚĞŶƚŝĨŝĞĚ ŝŶ ƚŚĞ ŝƚLJ͛Ɛ &ŝƐĐĂů ZĞĐŽǀĞƌLJ WůĂŶ ĂŶĚ ƚŚĞ /ŶĨƌĂƐƚƌƵĐƚƵƌĞ tŽƌŬƐŚŽƉ ǁŝƚŚ ƚŚĞ ŝƚLJ ŽƵŶĐŝů͘ dŚŝƐ ƉƌŽǀŝĚĞƐĂŵĞĐŚĂŶŝƐŵƚŽƚƌĂĐŬ/WĂůůŽĐĂƚŝŽŶƐďLJƐƐĞƚ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;D^Ϳ͘ dŚĞ ŶŝŶĞ D^͛Ɛ ŝŶĐůƵĚĞ ƚŚĞĨŽůůŽǁŝŶŐ͗ xdŚĞ ZŽĂĚǁĂLJ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;ZD^Ϳ ŝƐ ĐŽŵƉƌŝƐĞĚŽĨĂůůŝƚLJͲŽǁŶĞĚĂƐƐĞƚƐŝŶƚŚĞWƵďůŝĐ ZŝŐŚƚͲŽĨͲtĂLJ͘ dŚĞƐĞ ĂƐƐĞƚƐ ŝŶĐůƵĚĞ͗ DĂũŽƌ ĂŶĚ >ŽĐĂů^ƚƌĞĞƚƐ͕^ŝĚĞǁĂůŬƐ͕dƌĂĨĨŝĐ^ŝŐŶĂůƐΘ^ƚƌŝƉŝŶŐ͕ ŝĐLJĐůĞ ĂŶĚ WĞĚĞƐƚƌŝĂŶ ƉĂƚŚƐ͕ ZĂŵƉƐ ĂŶĚ ƵƌďƐĂŶĚ'ƵƚƚĞƌƐ͘ŵĂũŽƌŝƚLJŽĨƚŚĞ/WĨƵŶĚŝŶŐŝƐ ĨŽĐƵƐĞĚŽŶƚŚĞZD^͘ xdŚĞ tĂƐƚĞǁĂƚĞƌ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;tD^Ϳ ŝƐ ĐŽŵƉƌŝƐĞĚŽĨ^ĞǁĞƌWƵŵƉ^ƚĂƚŝŽŶƐ͕ZĞŚĂďŝůŝƚĂƚŝŽŶ ĂŶĚƌĞůĂƚĞĚƉƌŽũĞĐƚƐ͘ xdŚĞ ƌĂŝŶĂŐĞ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;D^Ϳ ŝƐ ĐŽŵƉƌŝƐĞĚŽĨĐŝƚLJǁŝĚĞƐƚŽƌŵĚƌĂŝŶĨĂĐŝůŝƚŝĞƐ͘ xdŚĞ ƵŝůĚŝŶŐ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;D^Ϳ ŝƐ ĐŽŵƉƌŝƐĞĚ ŽĨ ŝƚLJͲŽǁŶĞĚ ĨĂĐŝůŝƚŝĞƐ ŝŶĐůƵĚŝŶŐ ƚŚĞ ŝǀŝĐĞŶƚĞƌ͕&ŝƌĞ^ƚĂƚŝŽŶƐ͕>ŝďƌĂƌŝĞƐ͕WŽůŝĐĞ^ƚĂƚŝŽŶ͕ ZĞĐƌĞĂƚŝŽŶĞŶƚĞƌƐ͕ĂŶĚĐŽŵŵƵŶŝƚLJĨĂĐŝůŝƚŝĞƐƐƵĐŚ ĂƐZŽŚƌDĂŶŽƌĂŶĚƚŚĞtŽŵĂŶ͛ƐůƵď͘ xdŚĞWĂƌŬƐDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ;WD^ͿŝƐĐŽŵƉƌŝƐĞĚ ŽĨƚŚĞĐŝƚLJǁŝĚĞƉĂƌŬƐLJƐƚĞŵ͘ xdŚĞ KƉĞŶ ^ƉĂĐĞ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;KD^Ϳ ŝƐ ĐŽŵƉƌŝƐĞĚ ŽĨ ƚŚĞ KƉĞŶ ^ƉĂĐĞ ŝƐƚƌŝĐƚƐ ĂŶĚ ŽŵŵƵŶŝƚLJ&ĂĐŝůŝƚLJŝƐƚƌŝĐƚƐ;&ƐͿ͘ xdŚĞ&ůĞĞƚDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ;&D^ͿŝƐĐŽŵƉƌŝƐĞĚ ŽĨŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂƐƐŽĐŝĂƚĞĚǁŝƚŚŵĂŝŶƚĂŝŶŝŶŐŝƚLJͲ ŽǁŶĞĚǀĞŚŝĐůĞƐ͘ xdŚĞ 'ĞŶĞƌĂů 'ŽǀĞƌŶŵĞŶƚ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;''D^Ϳ ŝŶĐůƵĚĞƐ ŐĞŶĞƌĂůͲƉƵƌƉŽƐĞ ŝƚĞŵƐ ƐƵĐŚ ĂƐ ƵƚŽŵĂƚŝŽŶ͕ hƚŝůŝƚLJ hŶĚĞƌŐƌŽƵŶĚŝŶŐ ĂŶĚ WĂƌŬŝŶŐ DĞƚĞƌƐ͘ xdŚĞhƌďĂŶ&ŽƌĞƐƚƌLJDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ;hD&^ͿŝƐ ĐŽŵƉƌŝƐĞĚ ŽĨ ŝƚLJͲŽǁŶĞĚ ƐƚƌĞĞƚ ƚƌĞĞƐ͕ ĂŶĚ ƚƌĞĞƐ ǁŝƚŚŝŶWƵďůŝĐZŝŐŚƚͲŽĨͲtĂLJĂŶĚƉĂƌŬƐ͘ dŚĞ ĨŽůůŽǁŝŶŐ ĐŚĂƌƚ ƉƌŽǀŝĚĞƐ ĂŶ ĞdžƉĞŶĚŝƚƵƌĞ ďƌĞĂŬĚŽǁŶ͕ ďLJ ƐƐĞƚ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ͕ ƚŽƚĂůŝŶŐ ĂƉƉƌŽdžŝŵĂƚĞůLJ ΨϮϵ͘ϯ ŵŝůůŝŽŶ ŽĨ ƌĞĐŽŵŵĞŶĚĞĚ ĂƉƉƌŽƉƌŝĂƚŝŽŶƐ͗ 173 324 ʹͲͳͻ &ŝƐĐĂůzĞĂƌϮϬϭϵWƌŽƉŽƐĞĚ/WďLJƐƐĞƚDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ ZKtzDE' D Ed^z^d D;ZD^Ϳ ŵĂũŽƌŝƚLJŽĨƚŚĞ/WĨƵŶĚŝŶŐŝƐĨŽĐƵƐĞĚŽŶƚŚĞZŽĂĚǁĂLJ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;ZD^Ϳ͘ dŚĞ ƚŽƚĂů ĂŵŽƵŶƚ ƉƌŽŐƌĂŵŵĞĚĨŽƌZŽĂĚǁĂLJƉƌŽũĞĐƚƐŝƐΨϭϴŵŝůůŝŽŶ͕ǁŚŝĐŚ ƌĞƉƌĞƐĞŶƚƐϱϵ͘ϬϵйŽĨƚŚĞƉƌŽƉŽƐĞĚ/WďƵĚŐĞƚ͘WƌŽũĞĐƚ ƚLJƉĞƐǁŝƚŚŝŶƚŚĞZD^ĂƌĞDĂũŽƌ^ƚƌĞĞƚƐ͕>ŽĐĂů^ƚƌĞĞƚƐ͕ ĂŶĚdƌĂĨĨŝĐ͘dŚĞĨŽůůŽǁŝŶŐĐŚĂƌƚĂŶĚƚĂďůĞƐƵŵŵĂƌŝnjĞƐ ƚŚĞĨƵŶĚŝŶŐďLJƚŚĞƐĞƉƌŽũĞĐƚƚLJƉĞƐ͘ ZD^WƌŽũĞĐƚƐ xDĂũŽƌ^ƚƌĞĞƚƐ ƉƉƌŽdžŝŵĂƚĞůLJΨϴ͘ϳŵŝůůŝŽŶŝŶĨƵŶĚŝŶŐŝŶĐůƵĚĞƐƚŚĞ WĂǀĞŵĞŶƚDĂũŽƌZĞŚĂďŝůŝƚĂƚŝŽŶWƌŽũĞĐƚ;ĐŝƚLJǁŝĚĞͿ͕ ŝŬĞ>ĂŶĞƐŽŶƌŽĂĚǁĂLJ;ůĂƐƐϮͿƉƌŽũĞĐƚ͕ƐŝĚĞǁĂůŬ ŝŵƉƌŽǀĞŵĞŶƚƐŽŶ ĂƐƚ͞,͟^ƚƌĞĞƚ͕ĂŶĚ,ĞƌŝƚĂŐĞ ZŽĂĚ ďƌŝĚŐĞ ŝŵƉƌŽǀĞŵĞŶƚƐ͘ dŚĞ WĂǀĞŵĞŶƚ DĂũŽƌ ZĞŚĂďŝůŝƚĂƚŝŽŶ WƌŽũĞĐƚ ŝŶĐůƵĚĞƐ ƌĞƐƵƌĨĂĐŝŶŐ ĂŶĚ ƉĂǀĞŵĞŶƚŽǀĞƌůĂLJƐ͕ǁŚŝĐŚŵĂLJĞdžƚĞŶĚƐƚƌĞĞƚůŝĨĞďLJ ƵƉƚŽϭϱLJĞĂƌƐ͘&ĂŝůƵƌĞƚŽĐŽŵƉůĞƚĞƉƌŽĂĐƚŝǀĞƐƚƌĞĞƚ ŵĂŝŶƚĞŶĂŶĐĞ ǁŝůů ůĞĂĚ ƚŽ ƚŚĞ ĂĐĐĞůĞƌĂƚĞĚ ĚĞƚĞƌŝŽƌĂƚŝŽŶŽĨŝƚLJƐƚƌĞĞƚƐ͕ƚŚĞƌĞďLJ͕ĐŽƐƚŝŶŐŵŽƌĞ ƚŽƌĞƉĂŝƌŝŶƚŚĞůŽŶŐͲƚĞƌŵ͘ x>ŽĐĂů^ƚƌĞĞƚƐ ƚŽƚĂů ŽĨ ΨϮ͘Ϯ ŵŝůůŝŽŶ ŚĂƐ ďĞĞŶ ŝĚĞŶƚŝĨŝĞĚ ĂƐ ŵĂƚĐŚŝŶŐĨƵŶĚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚĂƉŽƚĞŶƚŝĂů^ŵĂƌƚ 'ƌŽǁƚŚ/ŶĐĞŶƚŝǀĞWƌŽŐƌĂŵ;^'/WͿ'ƌĂŶƚĨƌŽŵ^ĂŶ ŝĞŐŽ ƐƐŽĐŝĂƚŝŽŶ ŽĨ 'ŽǀĞƌŶŵĞŶƚƐ ;^E'Ϳ ĨŽƌ ƚŚĞdŚŝƌĚǀĞŶƵĞ^ƚƌĞĞƚƐĐĂƉĞ/ŵƉƌŽǀĞŵĞŶƚWƌŽũĞĐƚ WŚĂƐĞϯĨƌŽŵ͞&͟^ƚƌĞĞƚƚŽ͞ ͟^ƚƌĞĞƚ͘ ƉƉƌŽdžŝŵĂƚĞůLJΨϭ͘ϳŵŝůůŝŽŶŝŶĨƵŶĚŝŶŐŝŶĐůƵĚĞƐƚŚĞ ĂŶŶƵĂů WĂǀĞŵĞŶƚ DŝŶŽƌ ZĞŚĂďŝůŝƚĂƚŝŽŶ ĂŶĚ ƌŽƐƐ 'ƵƚƚĞƌZĞŚĂďŝůŝƚĂƚŝŽŶWƌŽŐƌĂŵWƌŽũĞĐƚƐ͘ DŽƌĞ ƚŚĂŶ Ψϭ͘ϲ ŵŝůůŝŽŶ ŝƐ ƉƌŽŐƌĂŵŵĞĚ ĨŽƌ ƚŚĞ tŝůůŽǁ^ƚƌĞĞƚƌŝĚŐĞtŝĚĞŶŝŶŐWƌŽũĞĐƚ͘ ƉƉƌŽdžŝŵĂƚĞůLJ Ψϭ ŵŝůůŝŽŶ ŝƐ ƉƌŽŐƌĂŵŵĞĚ ĨŽƌ ƐŝĚĞǁĂůŬƌĞƉůĂĐĞŵĞŶƚĐŝƚLJǁŝĚĞ͘ xdƌĂĨĨŝĐ ƉƉƌŽdžŝŵĂƚĞůLJ Ψϭ͘ϴ ŵŝůůŝŽŶ ŝŶ ĨƵŶĚŝŶŐ ŚĂƐ ďĞĞŶ ŝŶĐůƵĚĞĚ ĨŽƌ ƚŚĞ dƌĂĨĨŝĐ ĂůŵŝŶŐ WƌŽŐƌĂŵ͕ dƌĂĨĨŝĐ ^ŝŐŶĂů ^LJƐƚĞŵ KƉƚŝŵŝnjĂƚŝŽŶ͕ dƌĂĨĨŝĐ ^ŝŐŶĂů ĂŶĚ ^ƚƌĞĞƚůŝŐŚƚ ^LJƐƚĞŵƐ hƉŐƌĂĚĞ ĂŶĚ DŽĚŝĨŝĐĂƚŝŽŶ WƌŽŐƌĂŵ͕ EĞŝŐŚďŽƌŚŽŽĚ dƌĂĨĨŝĐ ĂŶĚ WĞĚĞƐƚƌŝĂŶ ^ĂĨĞƚLJWƌŽŐƌĂŵ͕ĂŶĚŽƚŚĞƌƚƌĂĨĨŝĐƌĞůĂƚĞĚƉƌŽŐƌĂŵƐ͘ ϭϰ͘ϯϳй ϯ͘ϯϯйϬ͘ϳϳй ϯ͘ϯϯй ϲϬ͘Ϭϴй ϭϴ͘ϭϯй ƵŝůĚŝŶŐƐ ƌĂŝŶĂŐĞ 'ĞŶĞƌĂů'ŽǀΖƚ WĂƌŬƐ ZŽĂĚǁĂLJ tĂƐƚĞǁĂƚĞƌ 3URMHFW7\SH 3HUFHQWDJH $PRXQW /RFDO6WUHHWV 0DMRU6WUHHWV 7UDIILF 7RWDO 174 325 ʹͲͳͻ DŽƌĞƚŚĂŶΨϭŵŝůůŝŽŶŚĂƐďĞĞŶƉƌŽŐƌĂŵŵĞĚĨŽƌƚŚĞ ƌĞƚŝŵŝŶŐŽĨdƌĂĨĨŝĐ^ŝŐŶĂůƐĂŶĚŝŶƐƚĂůůĂƚŝŽŶŽĨ&ŝďĞƌ KƉƚŝĐͬ ƚŚĞƌŶĞƚŽŵŵƵŶŝĐĂƚŝŽŶ^LJƐƚĞŵĂŶĚƚƌĂĨĨŝĐ ƐŝŐŶĂůŵŽĚŝĨŝĐĂƚŝŽŶƐĂŶĚƵƉŐƌĂĚĞƐĐŝƚLJǁŝĚĞ͘ t^d td ZDE' D Ed^z^d D;tD^Ϳ dŚĞĂƉƉƌŽƉƌŝĂƚŝŽŶĨŽƌtĂƐƚĞǁĂƚĞƌDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ ;tD^ͿŝƐΨϱ͘ϰϱŵŝůůŝŽŶ͕ǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐϭϴ͘ϭϯйŽĨƚŚĞ ĂĚŽƉƚĞĚ /W ďƵĚŐĞƚ͘ dŚĞ tD^ ŝƐ ĚŝǀŝĚĞĚ ŝŶƚŽ ƚǁŽ ĐĂƚĞŐŽƌŝĞƐ͗ ^ĞǁĞƌ ZĞŚĂďŝůŝƚĂƚŝŽŶ Θ ^ƉĞĐŝĨŝĐ ^ĞǁĞƌ /ŵƉƌŽǀĞŵĞŶƚƐ͕ ĂŶĚ ^ĞǁĞƌ WƵŵƉ ^ƚĂƚŝŽŶƐ Θ ĐĐĞƐƐ ZŽĂĚƐ͘ ^ĞǁĞƌZĞŚĂďŝůŝƚĂƚŝŽŶΘ^ƉĞĐŝĨŝĐ^ĞǁĞƌ/ŵƉƌŽǀĞŵĞŶƚƐ dŚĞĂŶŶƵĂů^ĞǁĞƌĂŶĚDĂŶŚŽůĞZĞŚĂďŝůŝƚĂƚŝŽŶƉƌŽũĞĐƚ ĐŽŵŵŝƚƐΨϴϬϬ͕ϬϬϬĨŽƌĐŝƚLJǁŝĚĞǁŽƌŬ͘KĨƚŚŝƐĂŵŽƵŶƚ͕ ΨϮϬϬ͕ϬϬϬ ŝƐ ŝŶĐůƵĚĞĚ ƚŽ ĐŽŵƉůĞƚĞ ƐĞǁĞƌ ƉŝƉĞ ŝŵƉƌŽǀĞŵĞŶƚƐ Ăƚ ǀĂƌŝŽƵƐ ůŽĐĂƚŝŽŶƐ͘ &ƵŶĚŝŶŐ ŽĨ ΨϲϬϬ͕ϬϬϬ ŝƐ ŝŶĐůƵĚĞĚ ƚŽ ĐŽŵƉůĞƚĞ ƐĞǁĞƌ ŵĂŶŚŽůĞ ƌĞŚĂďŝůŝƚĂƚŝŽŶ ĞĨĨŽƌƚƐ ĐŝƚLJǁŝĚĞ ĂŶĚ ĐŽŶƚŝŶƵĞ ŵĂŶŚŽůĞ ŝŶƐƉĞĐƚŝŽŶƐƚŽĞƐƚĂďůŝƐŚĂďĂƐĞůŝŶĞĐŽŶĚŝƚŝŽŶŝŶŽƌĚĞƌƚŽ ƉƌĞƐĞƌǀĞĂŶĚĞdžƚĞŶĚƐĞƌǀŝĐĞůŝĨĞĂŶĚĂǀŽŝĚĨĂŝůƵƌĞƐŽĨ ĞdžŝƐƚŝŶŐƐƚƌƵĐƚƵƌĞƐ͘ ^ĞǁĞƌWƵŵƉ^ƚĂƚŝŽŶƐĂŶĚĐĐĞƐƐZŽĂĚƐ &ƵŶĚƐŽĨΨϮ͘ϳϱŵŝůůŝŽŶĂƌĞƉƌŽŐƌĂŵŵĞĚƚŽƵƉŐƌĂĚĞƚŚĞ '^ƚƌĞĞƚWƵŵƉ^ƚĂƚŝŽŶƚŽƉƌŽǀŝĚĞƐƵĨĨŝĐŝĞŶƚĞŵĞƌŐĞŶĐLJ ƐƚŽƌĂŐĞ ĨŽƌ ƚŚĞ ĂLJĨƌŽŶƚ͘ DŽƌĞ ƚŚĂŶ Ψϭ ŵŝůůŝŽŶ ŝƐ ŝŶĐůƵĚĞĚ ƚŽ ĐŽŵƉůĞƚĞ ƵƉŐƌĂĚĞƐ ƚŽ ƚŚĞ WĂƌŬƐŝĚĞ ƌŝǀĞ >ŝĨƚ ^ƚĂƚŝŽŶ͘ ƚŽƚĂů ŽĨ ΨϱϬϬ͕ϬϬϬ ŝƐ ƉƌŽŐƌĂŵŵĞĚ ƚŽ ĐŽŵƉůĞƚĞŝŵƉƌŽǀĞŵĞŶƚƐƚŽƚŚĞ:^ƚƌĞĞƚ^ĞǁĞƌ:ƵŶĐƚŝŽŶ ^ƚƌƵĐƚƵƌĞ͘^ĞǁĞƌĂĐĐĞƐƐƌŽĂĚƐĂƚǀĂƌŝŽƵƐůŽĐĂƚŝŽŶƐǁŝůů ďĞƌĞŚĂďŝůŝƚĂƚĞĚ͕ĂƚĂĐŽƐƚŽĨΨϯϱϬ͕ϬϬϬ͘ Z/E' DE' D Ed^z^d D;D^Ϳ dŚĞ ĂƉƉƌŽƉƌŝĂƚŝŽŶ ĨŽƌ ƌĂŝŶĂŐĞ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;D^ͿƉƌŽũĞĐƚƐŝƐΨϭŵŝůůŝŽŶǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐϯ͘ϯϯйŽĨ ƚŚĞĂĚŽƉƚĞĚ/WďƵĚŐĞƚ͘ D^WƌŽũĞĐƚƐ xƌĂŝŶĂŐĞ &ƵŶĚŝŶŐ ŽĨ Ψϭ ŵŝůůŝŽŶ ŚĂƐ ďĞĞŶ ƉƌŽŐƌĂŵŵĞĚ ĨŽƌ DW ƌĞŚĂďŝůŝƚĂƚŝŽŶ͘ dŚĞ ƌĞŚĂďŝůŝƚĂƚŝŽŶ ŽĨ DW Ăƚ ǀĂƌŝŽƵƐ ůŽĐĂƚŝŽŶƐ ǁŝƚŚŝŶ ƚŚĞ ƌŝŐŚƚͲŽĨͲǁĂLJ ǁŝůů ďĞ ĂĚĚƌĞƐƐĞĚǁŝƚŚƚŚŝƐƉƌŽũĞĐƚ͘ h/>/E'DE' D Ed^z^d D;D^Ϳ dŚĞ ĂƉƉƌŽƉƌŝĂƚŝŽŶ ĨŽƌ ƵŝůĚŝŶŐ DĂŶĂŐĞŵĞŶƚ ^LJƐƚĞŵ ;D^ͿƉƌŽũĞĐƚƐŝƐΨϰ͘ϯŵŝůůŝŽŶ͕ǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐϭϰ͘ϯϳй ŽĨƚŚĞĂĚŽƉƚĞĚ/WďƵĚŐĞƚ͘ DŽƌĞ ƚŚĂŶ ΨϮ͘Ϯ ŵŝůůŝŽŶ ŝŶ DĞĂƐƵƌĞ W ĨƵŶĚƐ ŝƐ ƉƌŽŐƌĂŵŵĞĚƚŽĐŽŵƉůĞƚĞƌĞƉĂŝƌƐĂƚǀĂƌŝŽƵƐĨŝƌĞƐƚĂƚŝŽŶƐ ĂŶĚĨŽƌƌĞƉůĂĐĞŵĞŶƚŽĨ&ŝƌĞ^ƚĂƚŝŽŶƐϱĂŶĚϵ͘dŚĞ&ŝƌĞ ĞƉĂƌƚŵĞŶƚ ĐƵƌƌĞŶƚůLJ ŽƉĞƌĂƚĞƐ ŶŝŶĞ ĨŝƌĞ ƐƚĂƚŝŽŶƐ ƚŽ ƉƌŽǀŝĚĞ Ă ŶĞƚǁŽƌŬ ŽĨ ĞŵĞƌŐĞŶĐLJ ƌĞƐƉŽŶƐĞ ƐĞƌǀŝĐĞ ĚĞůŝǀĞƌLJ͘ ƉƉƌŽdžŝŵĂƚĞůLJΨϮ͘ϭŵŝůůŝŽŶŝƐƉƌŽŐƌĂŵŵĞĚƚŽƐƚĂďŝůŝnjĞ ƚŚĞŽĨĨŝĐĞƐŽŶƚŚĞƐŽƵƚŚƐŝĚĞŽĨƚŚĞWƵďůŝĐtŽƌŬƐĞŶƚĞƌ ƚŽĞůŝŵŝŶĂƚĞĨƵƌƚŚĞƌƐĞƚƚůĞŵĞŶƚ͘ &> dDE' D Ed^z^d D;&D^Ϳ dŚĞƌĞĂƌĞŶŽ/WƉƌŽũĞĐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞƉƵƌĐŚĂƐĞ ŽĨǀĞŚŝĐůĞƐ͘,ŽǁĞǀĞƌ͕ǁŝƚŚĨƵŶĚŝŶŐĨƌŽŵDĞĂƐƵƌĞW͕ƚŚĞ ŝƚLJŚĂƐĂĚĚĞĚĞůĞĐƚƌŝĐĐŚĂƌŐŝŶŐƐƚĂƚŝŽŶƐĂƚƐŽŵĞŝƚLJ ĨĂĐŝůŝƚŝĞƐƚŽĂĐĐŽŵŵŽĚĂƚĞŶĞǁĞůĞĐƚƌŝĐĂůǀĞŚŝĐůĞƐďĞŝŶŐ ĂĚĚĞĚƚŽƚŚĞĨůĞĞƚ͘ WZ<^DE' D Ed^z^d D;WD^Ϳ dŚĞĂƉƉƌŽƉƌŝĂƚŝŽŶĨŽƌWĂƌŬDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ;WD^Ϳ ƉƌŽũĞĐƚƐŝƐΨϭŵŝůůŝŽŶ͕ǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐϯ͘ϯϯйŽĨƚŚĞ ĂĚŽƉƚĞĚ/WďƵĚŐĞƚ͘ dŚĞŝƚLJǁĂƐĂǁĂƌĚĞĚĂzŽƵƚŚ^ŽĐĐĞƌ'ƌĂŶƚĨƌŽŵƚŚĞ ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂĞƉĂƌƚŵĞŶƚŽĨWĂƌŬƐĂŶĚZĞĐƌĞĂƚŝŽŶ KĨĨŝĐĞ ŽĨ 'ƌĂŶƚƐ ĂŶĚ >ŽĐĂů ^ĞƌǀŝĐĞƐ͘ dŚĞ ƉƌŽŐƌĂŵ ƉƌŽǀŝĚĞƐĨƵŶĚŝŶŐĨŽƌĚĞǀĞůŽƉŵĞŶƚƉƌŽũĞĐƚƐƚŚĂƚĐƌĞĂƚĞ ŶĞǁŽƉƉŽƌƚƵŶŝƚŝĞƐĨŽƌLJŽƵƚŚƐŽĐĐĞƌ͕ďĂƐĞďĂůů͕ƐŽĐĐĞƌ͕ ĂŶĚďĂƐŬĞƚďĂůů͖ǁŝƚŚƚŚĞŝŶƚĞŶƚŽĨƚŚĞƉƌŽũĞĐƚƚŽƐĞƌǀĞ ůŽǁͲŝŶĐŽŵĞƵƌďĂŶĂƌĞĂƐǁŝƚŚĂŚŝŐŚLJŽƵƚŚĐƌŝŵĞĂŶĚ ƵŶĞŵƉůŽLJŵĞŶƚƌĂƚĞ͘ĂƐĞĚŽŶĐŽŵŵƵŶŝƚLJŝŶƉƵƚ͕ƐƚĂĨĨ ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ͕ĂŶĚĚĞŵŽŐƌĂƉŚŝĐĚĂƚĂ͕>ĂƵĚĞƌďĂĐŚ WĂƌŬ ǁĂƐ ŝĚĞŶƚŝĨŝĞĚ ĂƐ ƚŚĞ ůŽĐĂƚŝŽŶ ĨŽƌ ƉŽƚĞŶƚŝĂů ĚĞǀĞůŽƉŵĞŶƚŽĨƐƉŽƌƚƐĨĂĐŝůŝƚŝĞƐ͘ƚŽƚĂůŽĨΨϭŵŝůůŝŽŶŝƐ ƉƌŽŐƌĂŵŵĞĚ ĨŽƌ ŝŵƉƌŽǀĞŵĞŶƚƐ ĂƐƐŽĐŝĂƚĞĚ ǁŝƚŚ >ĂƵĚĞƌďĂĐŚWĂƌŬ͘ KW E^W DE' D Ed^z^d D;K^D^Ϳ dŚĞ KƉĞŶ ^ƉĂĐĞ ŝƐƚƌŝĐƚƐ ĂŶĚ ŽŵŵƵŶŝƚLJ &ĂĐŝůŝƚLJ ŝƐƚƌŝĐƚƐ;&͛ƐͿǁĞƌĞĞƐƚĂďůŝƐŚĞĚǁŝƚŚŶĞǁƐƵďĚŝǀŝƐŝŽŶƐ ďĞŐŝŶŶŝŶŐ ŝŶ ƚŚĞ ϭϵϴϬƐ͘ dŚĞƐĞ ĨƵŶĚŝŶŐ ŵĞĐŚĂŶŝƐŵƐ ǁĞƌĞĞƐƚĂďůŝƐŚĞĚƚŽĞŶƐƵƌĞƐƵƐƚĂŝŶĂďůĞŝŵƉƌŽǀĞŵĞŶƚƐ ŝŶƚŚĞŶĂƚƵƌĂůĂŶĚůĂŶĚƐĐĂƉĞĚĂƌĞĂƐŝŶĂŶĚĂƌŽƵŶĚƚŚĞ ŶĞǁ ĚĞǀĞůŽƉŵĞŶƚƐ͘ dŚĞƐĞ ĨĞĞƐ ǁĞƌĞ ƐƚƌƵĐƚƵƌĞĚ ƚŽ ĂůůŽǁŝŶĐƌĞŵĞŶƚĂůĂĚũƵƐƚŵĞŶƚǁŝƚŚŝŶĨůĂƚŝŽŶĂŶĚŚĂǀĞ ŐĞŶĞƌĂůůLJŬĞƉƚƉĂĐĞǁŝƚŚƚŚĞŵĂŝŶƚĞŶĂŶĐĞŶĞĞĚƐŽĨƚŚĞ ĚŝƐƚƌŝĐƚƐ͘ 175 326 ʹͲͳͻ hZE &KZ ^dZz DE' D Ed ^z^d D ;h&D^Ϳ dŚĞhƌďĂŶ&ŽƌĞƐƚƌLJDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵŝƐƌĞƐƉŽŶƐŝďůĞ ĨŽƌŵŽŶŝƚŽƌŝŶŐƚŚĞŽǀĞƌĂůůŚĞĂůƚŚŽĨƚƌĞĞƐƚŚƌŽƵŐŚŽƵƚ ƚŚĞ ŝƚLJ͕ ŝŶĐůƵĚŝŶŐ ƐƚƌĞĞƚ ƚƌĞĞƐ͕ ƉĂƌŬ ƚƌĞĞƐ͕ ĂŶĚ ƚƌĞĞƐ ůŽĐĂƚĞĚŽŶŝƚLJƉƌŽƉĞƌƚLJ͘dŚĞŝƚLJĐŽŶƚŝŶƵĞƐƚŽŵĂŝŶƚĂŝŶ ŝƚLJƐƚƌĞĞƚƚƌĞĞƐŝŶŽƌĚĞƌƚŽ͗ x ŶƐƵƌĞŽŶŐŽŝŶŐƚƌĂĨĨŝĐƐĂĨĞƚLJĂůŽŶŐŝƚLJƐƚƌĞĞƚƐ͖ x ŶŚĂŶĐĞƚŚĞĂƉƉĞĂƌĂŶĐĞĂŶĚŝŵĂŐĞŽĨƚŚĞŝƚLJ͖ x/ŵƉƌŽǀĞ ƚŚĞ Ăŝƌ ƋƵĂůŝƚLJ ĂŶĚ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚ ĨŽƌ ŝƚLJƌĞƐŝĚĞŶƚƐ͖ĂŶĚ xůĞĂƌƌŝŐŚƚͲŽĨͲǁĂLJŽďƐƚƌƵĐƚŝŽŶƐ͘ /ŶĚƵƐƚƌLJƐƚĂŶĚĂƌĚƐĞƚƐƚŚĞŝĚĞĂůƐĐŚĞĚƵůĞĨŽƌƉĞƌŝŽĚŝĐ ƚƌĞĞ ƚƌŝŵŵŝŶŐ ĂƐ ĨŽůůŽǁƐ͗WĂůŵƐ ŶĞĞĚ ƚŽ ďĞ ƚƌŝŵŵĞĚ ĞǀĞƌLJϭŽƌϮLJĞĂƌƐ͘EŽŶͲƉĂůŵƐĂƌĞƌĞĐŽŵŵĞŶĚĞĚƚŽďĞ ƚƌŝŵŵĞĚĞǀĞƌLJϯͲϱLJĞĂƌƐ;ĞƵĐĂůLJƉƚƵƐĂŶĚƉŝŶĞĞǀĞƌLJϮͲϯ ĂŶĚ ďƌŽĂĚůĞĂĨ ĞǀĞƌLJ ϱͲϲͿ͘ ĂƐĞĚ ŽŶ ĂŶ ŝŶǀĞŶƚŽƌLJ ŽĨ ĂďŽƵƚϮϳ͕ϱϬϬƚƌĞĞƐĂŶĚƵƐŝŶŐϱLJĞĂƌƐ͕ƚŚĞĂŶŶƵĂůŐŽĂůŝƐ ƚŽƚƌŝŵϱ͕ϱϬϬƚƌĞĞƐ͘DĂŝŶƚĞŶĂŶĐĞŽĨŝƚLJƚƌĞĞƐŝƐ ƉƌŝŵĂƌŝůLJĨƵŶĚĞĚǀŝĂ'ĂƐdĂdž&ƵŶĚƐ͘ ' E Z>'Ks ZED EdDE' D Ed^z^d D ;''D^Ϳ dŚĞ ĂƉƉƌŽƉƌŝĂƚŝŽŶ ĨŽƌ 'ĞŶĞƌĂů 'ŽǀĞƌŶŵĞŶƚ ^LJƐƚĞŵ ;''^ͿƉƌŽũĞĐƚƐŝƐΨϮϯϬ͕ϬϬϬ͕ǁŚŝĐŚƌĞƉƌĞƐĞŶƚƐϬ͘ϳϳйŽĨ ƚŚĞĂĚŽƉƚĞĚ/WďƵĚŐĞƚ͘ ''D^WƌŽũĞĐƚƐ x'ĞŶĞƌĂů'ŽǀĞƌŶŵĞŶƚ dŚĞŝƚLJŚĂƐĂƉƉƌŽdžŝŵĂƚĞůLJϭϲϰDŝůĞƐŽĨ ĂďŽǀĞŐƌŽƵŶĚ ĞůĞĐƚƌŝĐ ĚŝƐƚƌŝďƵƚŝŽŶ ǁŝƌĞƐ ǁŝƚŚ ĂŶ ĞƐƚŝŵĂƚĞĚ ĐŽƐƚ ƚŽ ƵŶĚĞƌŐƌŽƵŶĚ ŽĨ ΨϮϳϱ ŵŝůůŝŽŶ͘ dŚĞ&ƌĂŶĐŚŝƐĞŐƌĞĞŵĞŶƚǁŝƚŚ^' ůůŽĐĂƚŝŽŶŝƐ ΨϮ ŵŝůůŝŽŶ ƉĞƌ LJĞĂƌ ĨƌŽŵ ϮϬ &ƵŶĚƐ͘ ůŵŽƐƚ ΨϰϬ ŵŝůůŝŽŶ ŚĂƐ ďĞĞŶ ĞdžƉĞŶĚĞĚ ŝŶ ƵŶĚĞƌŐƌŽƵŶĚŝŶŐ ƉƌŽũĞĐƚƐƐŝŶĐĞƚŚĞϭϵϵϬ͛Ɛ͘dŚĞŵŽƐƚƌĞĐĞŶƚ ĐŽŵƉůĞƚĞĚƉƌŽũĞĐƚƐĂƌĞƚŚĞWŚĂƐĞ/ĂLJĨƌŽŶƚƉƌŽũĞĐƚ ĂƚΨϮϬŵŝůůŝŽŶ͕ĂŶĚ&ŽƵƌƚŚǀĞŶƵĞĨƌŽŵ>^ƚƌĞĞƚƚŽ KƌĂŶŐĞ ǀĞŶƵĞ ĂŶĚ > ^ƚƌĞĞƚ ĨƌŽŵ DŽŶƐĞƌĂƚĞ ǀĞŶƵĞ ƚŽ EĂĐŝŽŶ ǀĞŶƵĞ͕ Ăƚ Ψϵ͘ϯ ŵŝůůŝŽŶ͘ dŚĞ ŝƚLJ͛ƐϮϬĨƵŶĚĂůůŽĐĂƚŝŽŶŚĂƐĂƉŽƐŝƚŝǀĞďĂůĂŶĐĞŽĨ ΨϮ͘ϭϯŵŝůůŝŽŶ͘ĐĐŽƌĚŝŶŐƚŽZƵůĞϮϬ͕ŵƵŶŝĐŝƉĂůŝƚŝĞƐ ĐĂŶ ŝŶĐƵƌ ĚĞďƚ ƵƉ ƚŽ ĨŝǀĞ ƚŝŵĞƐ ƚŚĞ ĂŶŶƵĂů ĂůůŽĐĂƚŝŽŶ͘ KŶKĐƚŽďĞƌϭϳ͕ϮϬϭϳ͕ƐƚĂĨĨƉƌĞƐĞŶƚĞĚĂƌĞƉŽƌƚƚŽ ƚŚĞŽƵŶĐŝůĂŶĚƌĞĐŽŵŵĞŶĚĞĚƚŚĂƚƚǁŽŶĞǁhƚŝůŝƚLJ hŶĚĞƌŐƌŽƵŶĚŝŶŐŝƐƚƌŝĐƚƐ;hhͿďĞĞƐƚĂďůŝƐŚĞĚĨŽƌ ƚŚĞ & ^ƚƌĞĞƚ ĐŽƌƌŝĚŽƌ͗ & ^ƚƌĞĞƚ ĨƌŽŵ ĂLJ ůǀĚ͘ ƚŽ ƌŽĂĚǁĂLJ ;hh ηϭϰϭͿ Ͳ Ψϯ ŵŝůůŝŽŶ͕ ĂŶĚ ĨƌŽŵ ƌŽĂĚǁĂLJƚŽ&ŽƵƌƚŚǀĞŶƵĞ;hhηϭϰϮͿͲΨϭ͘ϲ ŵŝůůŝŽŶ͘ KŶ EŽǀĞŵďĞƌ Ϯϭ͕ ϮϬϭϳ͕ ƚŚĞ ŝƚLJ ŽƵŶĐŝů ŚĞůĚ Ă WƵďůŝĐ,ĞĂƌŝŶŐĂŶĚĨŽƌŵĞĚƚŚĞƚǁŽ&^ƚƌĞĞƚhh͛Ɛ͘ ĞƐŝŐŶǁŽƌŬŚĂƐĐŽŵŵĞŶĐĞĚǁŝƚŚ^'Θ ŽŶhh ηϭϰϭ ĂŶĚ ƚŚĞ ƵŶĚĞƌŐƌŽƵŶĚŝŶŐ ŽĨ ƚŚĞ ƵƚŝůŝƚŝĞƐ ǁŝůů ďĞŐŝŶŝŶϮϬϭϵǁŝƚŚƉĂǀĞŵĞŶƚƌĞŚĂďŝůŝƚĂƚŝŽŶǁŽƌŬŝŶ ϮϬϮϬ͘ ƚŽƚĂů ŽĨ Ψϵϱ͕ϬϬϬ ŝƐ ƉƌŽŐƌĂŵŵĞĚ ĨŽƌ ĂĚǀĂŶĐĞ ƉůĂŶŶŝŶŐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞĐŝƚLJǁŝĚĞ/WWƌŽŐƌĂŵ͘ &ƵŶĚŝŶŐŽĨΨϭϯϱ͕ϬϬϬǁŝůůďĞƵƚŝůŝnjĞĚĨŽƌƚŚĞŝƚLJ͛Ɛ ƉĂǀĞŵĞŶƚ ŵĂŶĂŐĞŵĞŶƚ ƐLJƐƚĞŵ͕ ǁŚŝĐŚ ƌĞƋƵŝƌĞƐ ŽŶŐŽŝŶŐ ŵĂŶĂŐĞŵĞŶƚ ĨŽƌ ĐƌŽƐƐͲĚĞƉĂƌƚŵĞŶƚĂů ĐŽŽƌĚŝŶĂƚŝŽŶ͕ ƌĞŐƵůĂƌ ĚĂƚĂ ĂŶĚ ƐLJƐƚĞŵ ƵƉĚĂƚĞƐ͕ ĚĂƚĂĂŶĂůLJƐŝƐŽĨƉĂǀĞŵĞŶƚĐŽŶĚŝƚŝŽŶƐ͕ĂŶĚƉƌŝŽƌŝƚLJ ĚĞǀĞůŽƉŵĞŶƚďĂƐĞĚŽŶŵĂŝŶƚĞŶĂŶĐĞƐƚƌĂƚĞŐŝĞƐ͘ Z '/KE>WZK: d^ dŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ/WŝŶĐůƵĚĞƐĨƵŶĚŝŶŐĨŽƌƐĞǀĞƌĂů ƐƚƵĚŝĞƐƌĞůĂƚĞĚƚŽƌĞŐŝŽŶĂůƉƌŽũĞĐƚƐ͘/ƚĚŽĞƐŶŽƚŝŶĐůƵĚĞ ƚŽƚĂůĐŽƐƚƐŽĨƌĞŐŝŽŶĂůƉƌŽũĞĐƚƐĨƵŶĚĞĚŽƌůĞĚďLJŽƚŚĞƌ ĂŐĞŶĐŝĞƐ ƐƵĐŚ ĂƐ ĂůƚƌĂŶƐ Žƌ ^E'͘ ,ŽǁĞǀĞƌ͕ ŝƚLJ ƐƚĂĨĨŽĨƚĞŶƉĂƌƚŶĞƌƐŽƌŐĞƚƐŝŶǀŽůǀĞĚŝŶƚŚĞĚĞůŝǀĞƌLJŽĨ ƚŚĞƐĞƉƌŽũĞĐƚƐƐŝŶĐĞƚŚĞLJƉƌŽǀŝĚĞĂĚŝƌĞĐƚďĞŶĞĨŝƚƚŽƚŚĞ ĐŽŵŵƵŶŝƚLJ ĂŶĚ ƐƵƐƚĂŝŶĂďůĞ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞ͘ dŚĞ ĨŽůůŽǁŝŶŐŝƐĂƐƵŵŵĂƌLJŽĨǀĂƌŝŽƵƐƉƌŽũĞĐƚƐ͗ x/ŶƚĞƌƐƚĂƚĞͲϱDƵůƚŝͲŵŽĚĂůŽƌƌŝĚŽƌ^ƚƵĚLJ /ŶĂŶĞĨĨŽƌƚƚŽŝĚĞŶƚŝĨLJĂůůƚƌĂŶƐƉŽƌƚĂƚŝŽŶƌĞůĂƚĞĚ ŝŵƉƌŽǀĞŵĞŶƚƐŶĞĞĚĞĚĂůŽŶŐ͕ĂĐƌŽƐƐĂŶĚǁŝƚŚŝŶƚŚĞ ĨŽƵƌͲŵŝůĞůŽŶŐ/ŶƚĞƌƐƚĂƚĞͲϱĂŶĚƌĂŝůĐŽƌƌŝĚŽƌŝŶŚƵůĂ sŝƐƚĂ͕ƚŚĞŝƚLJŚĂƐĐŽŵďŝŶĞĚĞĨĨŽƌƚƐǁŝƚŚĂůƚƌĂŶƐ͕ DĞƚƌŽƉŽůŝƚĂŶdƌĂŶƐŝƚ^LJƐƚĞŵ;Dd^ͿĂŶĚ^E'ƚŽ ƵŶĚĞƌƚĂŬĞ ƚŚŝƐ ƉůĂŶŶŝŶŐ ůĞǀĞů ƐƚƵĚLJ͘ &ƵŶĚŝŶŐ ŝƐ ƉƌŽǀŝĚĞĚ ďLJ Ă ĐŽŵďŝŶĂƚŝŽŶ ŽĨ dƌĂŶƐEĞƚ ĂŶĚ ƚǁŽ &ĞĚĞƌĂů ŐƌĂŶƚƐ͘ dŚĞ ƐƚƵĚLJ ŚĂƐ ƐĞǀĞƌĂů ƉŚĂƐĞƐ ŽĨ ǁŽƌŬ ĂŶĚ ƚŚĞ ĨŝƌƐƚ ƚǁŽ ƉŚĂƐĞƐ ŚĂǀĞ ďĞĞŶ ĐŽŵƉůĞƚĞĚ͘WŚĂƐĞ///ĐŽŵŵĞŶĐĞĚŝŶ&zϮϬϭϰĂŶĚŝƐ ĨŽƌ ƚŚĞ ĞŶǀŝƌŽŶŵĞŶƚĂů ǁŽƌŬ ĂŶĚ ƉƌĞůŝŵŝŶĂƌLJ ĞŶŐŝŶĞĞƌŝŶŐŽĨŐƌĂĚĞͲƐĞƉĂƌĂƚŝŶŐƚŚĞWĂůŽŵĂƌ^ƚƌĞĞƚ ůŝŐŚƚ ƌĂŝů ĐƌŽƐƐŝŶŐ ŶĞĂƌ ƚŚĞ ŝŶƚĞƌƐĞĐƚŝŽŶ ǁŝƚŚ /ŶĚƵƐƚƌŝĂůůǀĚ͘ 176 327 ʹͲͳͻ WŚĂƐĞ / ŝĚĞŶƚŝĨŝĞĚ ĂŶĚ ƉƌŝŽƌŝƚŝnjĞĚ ŶĞĞĚĞĚ ƚƌĂŶƐƉŽƌƚĂƚŝŽŶŝŵƉƌŽǀĞŵĞŶƚƐƚŽŝŵƉƌŽǀĞŵŽďŝůŝƚLJ ĂŶĚ ŐŽŽĚƐ ŵŽǀĞŵĞŶƚ ǁŝƚŚŝŶ ƚŚĞ ƐƚƵĚLJ ĂƌĞĂ ďŽƵŶĚĞĚďLJ^ZͲϱϰĂŶĚDĂŝŶ^ƚƌĞĞƚ͘dŚĞƌĞƐƵůƚƐŽĨ ƚŚĞĨŝƌƐƚƉŚĂƐĞƐƚƵĚLJĐŽŵƉůĞƚĞĚŝŶĞĐĞŵďĞƌϮϬϭϬ ŚĂǀĞĂůƌĞĂĚLJďĞĞŶŝŶĐůƵĚĞĚŝŶƚŚĞϮϬϱϬZĞŐŝŽŶĂů dƌĂŶƐƉŽƌƚĂƚŝŽŶ WůĂŶ ĂĚŽƉƚĞĚ ďLJ ^E' ŝŶ KĐƚŽďĞƌϮϬϭϭ͘dŚŝƐƌĞƉŽƌƚŝƐƵƐĞĚĂƐĂƚĞĐŚŶŝĐĂů ĂƉƉĞŶĚŝdž ƚŽ ƚŚĞ ^E' ϮϬϱϬ ZĞŐŝŽŶĂů dƌĂŶƐƉŽƌƚĂƚŝŽŶ WůĂŶ͘ ZĂŝů ŝŵƉƌŽǀĞŵĞŶƚƐ ǁĞƌĞ ŝĚĞŶƚŝĨŝĞĚĂƐƚŚĞŚŝŐŚĞƐƚŶĞĂƌƚĞƌŵŶĞĞĚ͘ ŚƚƚƉ͗ͬͬǁǁǁ͘ƐĂŶĚĂŐ͘ŽƌŐͬŝŶĚĞdž͘ĂƐƉ͍ƉƌŽũĞĐƚŝĚсϯϴϳΘĨ ƵƐĞĂĐƚŝŽŶсƉƌŽũĞĐƚƐ͘ĚĞƚĂŝů WŚĂƐĞ//͕ƚŚĞŚƵůĂsŝƐƚĂ>ŝŐŚƚZĂŝůŽƌƌŝĚŽƌ /ŵƉƌŽǀĞŵĞŶƚƐWƌŽũĞĐƚ^ƚƵĚLJZĞƉŽƌƚ͕ŝƐĂŐƌĂĚĞ ƐĞƉĂƌĂƚŝŽŶ ƐƚƵĚLJ ĨŽƌ ĞĂĐŚ ŽĨ ƚŚĞ ƚŚƌĞĞ ůŝŐŚƚ ƌĂŝů ƚƌŽůůĞLJƐƚĂƚŝŽŶƐĂƚ ^ƚƌĞĞƚ͕,^ƚƌĞĞƚĂŶĚWĂůŽŵĂƌ ^ƚƌĞĞƚ͘dŚŝƐĚŽĐƵŵĞŶƚ͕ĐŽŵƉůĞƚĞĚŝŶƵŐƵƐƚϮϬϭϮ͕ ŚĂƐ ƉůĂŶŶŝŶŐ ůĞǀĞů ǁŽƌŬ ĨŽƌ ƚŚĞ ƵůƚŝŵĂƚĞ ƌĂŝů ĐŽƌƌŝĚŽƌ ŝŵƉƌŽǀĞŵĞŶƚƐ ŝŶ ŚƵůĂ sŝƐƚĂ͘ &ŝŶĂů ƌĞĐŽŵŵĞŶĚĂƚŝŽŶƐ ĨƌŽŵ ƚŚĞ >Zd /ŵƉƌŽǀĞŵĞŶƚ ƐƚƵĚLJ ĂƌĞ ďĞŝŶŐ ŝŶĐŽƌƉŽƌĂƚĞĚ ŝŶƚŽ ƚŚĞ WŚĂƐĞ /// ĞŶǀŝƌŽŶŵĞŶƚĂůǁŽƌŬĨŽƌƚŚĞWĂůŽŵĂƌ^ƚƌĞĞƚůŽĐĂƚŝŽŶ ĂƐǁĞůůĂƐĨƵƚƵƌĞƌĞŐŝŽŶĂůƉůĂŶƐĂŶĚĂƐŝŶĚŝǀŝĚƵĂů ƉƌŽũĞĐƚƐŝŶƚŽƚŚĞĂLJĨƌŽŶƚĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ WƌŽŐƌĂŵ͕ƚŚĞtĞƐƚĞƌŶdƌĂŶƐƉŽƌƚĂƚŝŽŶĞǀĞůŽƉŵĞŶƚ 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1,297,090 1,555,499 201,173 Other Expenses - 345,261 350,000 8,941,239 Other Capital - 282,328 6,347,440 5,294,500 Transfers Out - - 244,400 - CIP Project Expenditures - 526,174 52,062,653 2,220,238 TOTAL EXPENDITURES -$ 2,450,853$ 60,559,992$ 16,657,150$ REVENUES Other Revenue - - (44,239,992) - Transfers In - (3,906,919) (16,320,000) (18,085,000) TOTAL REVENUES -$ (3,906,919)$ (60,559,992)$ (18,085,000)$ NET FUND ACTIVITY -$ (1,456,066)$ -$ (1,427,850)$ 2016 MEAURE P SALES TAX FUND (220) FUND SUMMARY 189 340 190 341 ʹͲͳͻ &ƵŶĚƉƉƌŽƉƌŝĂƚŝŽŶƐďLJĞƉĂƌƚŵĞŶƚĂŶĚ džƉĞŶĚŝƚƵƌĞĂƚĞŐŽƌLJ ^ĐŚĞĚƵůĞŽĨZĞǀĞŶƵĞƐ ^ĐŚĞĚƵůĞŽĨ/ŶƚĞƌĨƵŶĚdƌĂŶƐĨĞƌƐ ƵƚŚŽƌŝnjĞĚWŽƐŝƚŝŽŶƐďLJĞƉĂƌƚŵĞŶƚ 191 342 192 343 ʹͲͳͻ 193 344 194 345 PERSONNEL SERVICESSUPPLIES & SERVICESUTILTIESOTHER EXPENSESOTHER CAPITALINTERNAL SERVICE CHARGESTRANSFERS OUTCIP PROJECTSNON-CIP PROJECTSTOTAL FY 2019100 General Fund01City Council 1,516,217 105,847 1,307 - 3,190 - - - - 1,626,561 02Boards & Commissions 442 27,341 - - - - - - - 27,783 03City Clerk 707,409 276,350 688 - - - - - - 984,447 04City Attorney 2,732,121 303,300 1,856 - 4,948 - - - - 3,042,225 05Administration 2,067,370 88,812 832 - 3,416 - - - - 2,160,430 06Information Technology 2,367,025 1,251,145 11,907 - 87,890 - - - - 3,717,967 07Human Resources 2,357,100 411,670 1,457 - 9,272 - - - - 2,779,499 08Finance 3,591,162 261,065 2,212 - 15,499 - - - - 3,869,938 09Non-Departmental (2,270,022) 3,503,533 7,645 352,176 - - 23,665,863 - - 25,259,195 10Animal Care Facility 2,493,877 351,949 39,297 4,500 6,282 53,200 - - - 2,949,105 11Economic Development 1,954,839 168,422 2,497 - 1,520 - - - - 2,127,278 12Development Services 2,712,708 148,878 2,375 12,000 500 23,635 - - - 2,900,096 13Engineering/Capital Projects 7,090,732 341,834 867,081 108,500 10,000 144,695 391,000 - - 8,953,842 14Police 52,556,670 2,389,185 388,473 123,243 - 1,000,423 - - - 56,457,994 15Fire 28,312,472 1,316,274 180,529 - - 955,878 62,326 - - 30,827,479 16Public Works 9,331,125 1,543,196 555,619 15,000 75,171 464,748 - - - 11,984,859 17Recreation 7,061,033 983,466 2,461,897 80,500 2,523 326,315 - - - 10,915,734 18Library 3,629,303 201,994 257,704 400 - 3,345 - - - 4,092,746 100GENERAL FUND TOTAL 128,211,583 13,674,261 4,783,376 696,319 220,211 2,972,239 24,119,189 - - 174,677,178 220 2016 Measure P Sales Tax - 201,173 - 8,941,239 5,294,500 - - 2,220,238 - 16,657,150 221 Transportation Grants-Gas Tax - - - - - - 4,364,371 8,020,212 - 12,384,583 227 Transportation Sales Tax - - - - - - - 6,419,039 - 6,419,039 234 Advanced Life Support Program217,422 173,191 - - 193,469 3,478 972,453 - - 1,560,013 241 Parking Meter - 360,700 13,070 198,500 - - - 250,000 - 822,270 245 Traffic Safety - 38,500 - - - - 399,140 - - 437,640 256 Asset Seizure - 30,000 - - - - - - - 30,000 267 Permanent Endowments - 400 - 1,200 - - - - - 1,600 269 Other Grants 340,320 765,354 - 600,787 2,593 7,208 - - - 1,716,262 270 Mobile Park Fee - 28,000 - 37,000 - - - - - 65,000 271 Local Grants 83,087 51,000 - 2,000 - - - - - 136,087 272 Federal Grants 6,821,671 672,882 10,660 2,149,068 213,340 - 1,682,027 726,800 632,517 12,908,965 273 State Grants 28,197 383,657 - 63,275 - 2,297 - 1,747,216 - 2,224,642 282 Environmental Services 777,863 858,352 10,355 218,351 64,600 7,254 107,585 - - 2,044,360 301 Storm Drain - 348,100 840 - - - - - - 348,940 311 CDBG Housing Program - 5,100 - 46,000 - - - - - 51,100 313 Chula Vista Housing Authority 669,801 268,800 1,155 272,500 - - 254,697 - - 1,466,953 316 Public Educational & Govt Fee - 300,000 - - 300,000 - - - - 600,000 318 RDA Successor Agency Fund - 6,000 - 629,000 - - 2,802,925 - - 3,437,925 319 Housing Successor Agency - 63,500 - 4,039,237 6,000 - - - - 4,108,737 341 Public Liability Trust - 384,908 - 819,170 - - - - - 1,204,078 342 CFD 11-M Rolling Hills McM - 98,725 22,836 43,174 1,708 - - - - 166,443 343 CFD 12-M Otay Ranch Village 7 - 160,686 120,847 77,950 6,164 - - - - 365,647 344 CFD 13-M Otay Ranch Village 2 - 111,893 73,290 47,785 - - - - - 232,968 Ȁ DEPT / FUND195 346 PERSONNEL SERVICESSUPPLIES & SERVICESUTILTIESOTHER EXPENSESOTHER CAPITALINTERNAL SERVICE CHARGESTRANSFERS OUTCIP PROJECTSNON-CIP PROJECTSTOTAL FY 2019 Ȁ DEPT / FUND345 CFD 12M Village 7 Otay Ranch - 245,286 173,775 78,269 6,214 - - - - 503,544 346 CFD 14M-A-EUC Millenia - 141,739 10,500 11,000 - - 67,823 - - 231,062 347 CFD 14M-B-EUC Millenia - 84,356 22,475 10,000 - - - - - 116,831 348 CFD 18M Village 3 Otay Ranch - - - 5,000 - - - - - 5,000 349 CFD 19M Freeway Commercial 2 - 43,364 11,252 5,000 - - - - - 59,616 352 Bay Blvd Landscape District - 5,842 3,102 3,556 - - - - - 12,500 353 Eastlake Maintenance Dist I - 178,964 88,887 62,175 - - - - - 330,026 354 Open Space District #01 - 38,314 27,972 19,155 - - - - - 85,441 355 Open Space District #02 - 10,796 4,121 - - - - - - 14,917 356 Open Space District #03 - 29,775 15,900 7,419 - - - - - 53,094 357 Open Space District #04 - 50,730 20,020 21,271 - - - - - 92,021 358 Open Space District #05 - 22,377 17,456 11,463 - - - - - 51,296 359 Open Space District #06 - 13,493 11,550 9,135 - - - - - 34,178 361 Open Space District #07 - 10,784 2,250 4,438 - - - - - 17,472 362 Open Space District #08 - 50,900 16,150 10,146 - - - - - 77,196 363 Open Space District #09 - 39,496 23,928 11,318 - - - - - 74,742 364 Open Space District #10 - 43,749 29,286 13,512 - - - - - 86,547 365 Open Space District #11 - 82,190 66,950 34,754 - - - - - 183,894 367 Open Space District #14 - 157,102 163,596 45,108 - - - - - 365,806 368 Open Space District #15 - 20,141 3,469 - - - - - - 23,610 369 Open Space District #17 - 6,680 - 1,966 - - - - - 8,646 371 Open Space District #18 - 74,049 68,824 35,442 - - - - - 178,315 372 Open Space District #20 - 874,219 404,333 253,110 - - - - - 1,531,662 373 Open Space District #23 - 27,512 8,146 16,018 - - - - - 51,676 374 Open Space District #24 - 17,250 13,900 - - - - - - 31,150 375 Open Space District #26 - 8,851 2,761 - - - - - - 11,612 376 Open Space District #31 - 77,180 46,650 50,065 - - - - - 173,895 378 CFD 07M Eastlake Woods & Vista - 365,600 130,703 182,028 8,635 - - - - 686,966 379 CFD 08M Vlg 6 McMillin & OR - 484,005 302,915 233,903 12,685 - - - - 1,033,508 380 CFD 09M ORV II Brookfield-Shea - 615,366 210,087 180,619 12,694 - - - - 1,018,766 382 CFD 99-2 Otay Ranch Vlg 1 West - 442,912 209,029 130,588 9,954 - - - - 792,483 386 Otay Ranch Preserve - 542,500 - 60,000 - - - - - 602,500 387 CFD 98-3 Sunbow 2 - 562,668 210,970 145,314 11,537 - - - - 930,489 388 CFD 97-1 Otay Ranch - 1,545,579 521,349 364,078 30,411 - - - - 2,461,417 391 Central Garage Fund 982,653 2,288,945 131,090 400 - 21,748 - - - 3,424,836 398 Workers Compensation Fund - 829,605 - 3,702,764 - - - - - 4,532,369 406 Chula Vista Muni Golf Course - - - - - - 132,580 - - 132,580 408 Development Services Fund 7,972,944 823,938 5,650 195,000 85,500 38,622 1,923,648 - - 11,045,302 409 CV Elite Athlete Training Ctr - 125,300 - 63,200 - - - - - 188,500 411 Sewer Income - - - - - - - 2,000,000 - 2,000,000 414 Sewer Service Revenue 4,996,728 28,092,233 331 75,000 1,349,200 316,705 3,298,234 780,000 64,600 38,973,031 428 Sewer Facility Replacement - - - - - - 150,000 2,700,000 - 2,850,000 430 Sewer DIFs - - - 455,000 - - 200,000 - - 655,000 442 CDBG Section 108 Loan - - - 764,000 - - - - - 764,000 452 Equipment Lease Fund - - - 590,400 - - - - - 590,400 453 Energy Conservation Loans - - - 559,600 - - - - - 559,600 196 347 PERSONNEL SERVICESSUPPLIES & SERVICESUTILTIESOTHER EXPENSESOTHER CAPITALINTERNAL SERVICE CHARGESTRANSFERS OUTCIP PROJECTSNON-CIP PROJECTSTOTAL FY 2019 Ȁ DEPT / FUND475 2014 COP Refunding - 5,000 - 3,603,000 - - - - - 3,608,000 476 2015 Refunding COP - 5,001 - 2,923,999 - - - - - 2,929,000 477 2016 Ref COP Civic Ctr/Nature - 5,000 - 283,000 - - - - - 288,000 478 2016 LRRB PFDIF/COP - 6,000 - 2,152,000 - - - - - 2,158,000 479 2017 CREBs LRBs - - - 528,131 - - - - - 528,131 517 AD2004-1 Dixon Drive - - - - - - - - - - 518 AD2005-1 Tobias Drive - - - - - - - - - - 542 Drainage DIF - - - 10,000 - - - - - 10,000 560 Public Facilities DIF - 55,300 - 261,000 - - 7,737,472 - - 8,053,772 580 Pedestrian Bridge DIFs - - - 110,000 - - - - - 110,000 590 Transportation DIFs - - - 535,000 - - - 919,044 - 1,454,044 661 05 ERAF - SA - - - - - - 1,848 - - 1,848 662 06 ERAF - SA - - - - - - 1,861 - - 1,861 666 2016 TARBs - 5,000 - 1,132,925 - - - - - 1,137,925 692 Long-Term Advances DSF-RDA SA - - - 350,000 - - - - - 350,000 713 Capital Improvement Projects - - - - - - - 2,100,620 - 2,100,620 715 Parkland Acquisition & DevFees - 50,000 - 35,000 - - - - - 85,000 716 Western-Park Acquisition & Dev - - - 36,000 - - 50,000 - - 86,000 717 Residential Construction Tax - - - - - - 667,776 - - 667,776 723 Bicycle Facilities Fund - 65,000 - - - - - - - 65,000 736 Other Transportation Program - - - - - - - 2,176,107 - 2,176,107 GRAND TOTAL, ALL FUNDS 151,102,269 58,255,273 8,015,806 39,263,824 7,829,415 3,369,551 48,933,629 30,059,276 697,117 347,526,160 197 348 198 349 ʹͲͳͻ 199 350 200 351 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED 100 General Fund Property Taxes 4001 Current Taxes Secured (28,483,947) (29,743,373) (31,893,915) (33,488,611) 4002 State Secured Unitary (643,468) (621,574) (651,030) (683,582) 4003 Current Taxes Unsecured (914,383) (967,849) (964,181) (1,012,390) 4004 Delinquent Taxes (177,383) (138,896) (111,806) (117,396) 4005 Prop Tax in Lieu (999) (11,877) - - 4006 Property Tax in Lieu of VLF - - - (21,776,942) 4071 Real Property Transfer Tax (1,253,479) (1,057,611) (1,173,550) (1,173,550) Property Taxes Total (31,473,659) (32,541,180) (34,794,482) (58,252,471) Other Local Taxes 4011 Sales and Use Taxes (27,258,426) (32,561,430) (32,935,356) (33,698,020) 4012 Sales Tax Pub Safety Augment (862,876) (887,592) (832,110) (940,600) 4014 Sales Tax in lieu (6,058,954) (684) - - 4015 Sales Tax - Measure P - (3,906,919) (16,320,000) (18,085,000) 4021 Franchise Fees (11,709,977) (11,515,850) (11,968,646) (11,691,841) 4031 Utility Taxes (5,844,248) (5,786,326) (5,860,328) (5,605,396) 4041 Business License Tax (1,492,026) (1,513,240) (1,369,643) (1,369,643) 4042 Business License Tax Penalty (46,569) (45,647) (55,000) (55,000) 4051 Transient Occupancy Taxes (3,827,244) (3,650,442) (4,316,267) (4,102,798) Other Local Taxes Total (57,100,320) (59,868,130) (73,657,350) (75,548,298) Licenses & Permits 4201 Animal Licenses (123,357) (112,308) (175,300) (175,300) 4202 Bicycle Licenses (1,569) (153) - - 4211 Building Permits (135,768) (149,758) (160,489) (160,489) 4215 Utility Permits (157,653) (73,087) (105,966) (105,966) 4225 Temporary Sign Permits - - - - 4221 Fire Permits (341,841) (338,618) (322,030) (572,030) 4222 Security Alarm Permits (194,288) (219,379) (396,847) (230,847) 4223 Housing Permits (345,787) (360,770) (350,000) (350,000) 4224 Parking Permits (980) (12,812) (14,000) (14,000) Licenses & Permits Total (1,301,243) (1,266,885) (1,524,632) (1,608,632) Fines and Penalties 4301 Negligent Veh Impound Proc Fee (242,582) (245,911) (220,423) (220,423) 4302 Code Enforcement Violations (387,552) (171,446) (250,000) (250,000) 4311 Booking Fees (14,561) (16,444) (8,000) (8,000) 4312 False Alarm Penalty (128,065) (253,582) (119,000) (285,000) 4314 Ordinance Violation Fines (89,563) (96,065) (109,000) (109,000) 4315 CVHF Booking Fees (1,390) (2,015) (1,000) (1,000) 4331 Parking Citation (269,453) (236,703) (250,000) (250,000) FUND/ACCOUNT 201 352 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4341 Library Fines (116,291) (100,844) (118,000) (118,000) Fines and Penalties Total (1,249,457) (1,123,010) (1,075,423) (1,241,423) Use of Money & Property 4401 Investment Earnings City Pool (119,945) (43,201) (200,000) (800,000) 4402 Investment Earnings Others 489 (16,820) - (2,000) 4404 Change in Fair Value of Invts (92,982) 25,502 - - 4421 Sale of Other Personal Prop (48,221) (76,697) (8,000) (8,000) 4431 Coin Operated Machine Revenue (37,398) (37,862) (22,922) (18,997) 4432 Rentals Leases of Equipment (4) - - - 4433 Film Video Insurance Charge (18,473) (14,702) (35,850) (35,850) 4441 Pay Phones Revenue - 235 - - 4442 Rental Leases Picnic Shelters (254,738) (294,226) (220,000) (220,000) 4443 Rentals Leases Baseball Fields (106,241) (91,643) (134,325) (129,250) 4446 Rentals Leases Land Space (12) (12) - - 4447 Rental Telecom Site Lic Fee (793,709) (837,993) (772,693) (772,693) 4461 Rental Leases P R Centers (662,203) (694,488) (676,581) (676,581) 4462 Rentals Leases Buildings (746,429) (454,602) (350,744) (289,795) Use of Money & Property Total (2,879,866) (2,536,509) (2,421,115) (2,953,166) Revenue from Other Agencies 4503 PD State Grant RATT (326,615) (312,397) (299,826) (335,000) 4511 State Grant (350,311) (326,918) (292,000) (407,346) 4521 State Hmowners PropTax Relief (223,198) (221,942) (228,246) (228,246) 4531 St Motor Vehicle Licenses (104,094) (118,747) (104,094) (109,299) 4532 St Mtr Veh License in lieu (18,830,562) (19,847,161) (20,739,945) - 4551 Reimb State Mandated Costs (534,300) (420) - - 4552 Reimb Human Services Agen (7,558) (7,351) (7,233) (7,233) 4601 PD Fed Grant-Cops Univ Hiring (250,008) (205,445) (31,251) - 4602 PD Fed Grant - HIDTA (CBAG) (73,536) (121,405) (94,624) (117,084) 4603 PD Fed Grant-HIDTA Task Force (140,033) (164,702) (290,000) (287,000) 4611 Federal Grant - Other (114,455) (67,441) - (56,356) 4621 PD POST Reimb Prog (54,423) (17,162) (35,000) (35,000) 4622 PD STC Reimb Prog (6,760) (5,852) (7,000) (7,000) 4701 Grant - Other Agency (7,465) (11,010) (2,000) (2,000) 4711 Contributions - Other Agencies (665,000) (665,407) (664,000) (664,000) Revenue from Other Agencies Total (21,688,318) (22,093,360) (22,795,219) (2,255,564) Charges for Services 4751 Planning Fees (8,261) (5,367) (40,000) (40,000) 4752 Dev Fees - Deposit Based (1,065,296) (1,293,445) (1,004,664) (1,049,664) 4761 Sale of Maps & Publication (1,475) (3,127) (7,224) (6,724) 4763 Passport Fees (353,850) (533,374) (315,013) (315,013) 202 353 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4764 Lien Release Fees (2,525) (4,125) (5,000) (5,000) 4765 Document Certification Fees (15) (15) - - 4771 Plan Checking Fees (301) (1,050) - (25,000) 4781 Engineering Fees (58,433) (85,780) (66,000) (41,000) 4782 Fire Construction Fees (420,850) (729,186) (419,080) (534,080) 4784 State Mobilehome Park Act Fee (10,930) (11,340) (12,000) (12,000) 4785 Microfilming Fees - (815) - - 4791 Prop Transfer Report Fee (40) - - - 4811 Subdivision Traffic Sign Fees - (50) - - 4901 National City - Impounds (3,159) (8,725) (2,500) (2,500) 4902 Imperial Beach - Impounds (3,979) (5,480) (2,600) (2,600) 4903 Lemon Grove - Impounds (5,675) (6,555) (1,500) (1,500) 4911 Port District Fees (986,625) (1,010,304) (1,010,304) (1,059,364) 4921 Reimb fr Other Agencies-Jail (1,378,146) (1,450,482) (1,400,993) (1,477,634) 4951 Swimming Pool Fees (253,690) (174,640) (253,190) (253,190) 4952 Recreation Program Fees (646,960) (644,955) (724,888) (724,888) 4953 Other Recreation Fees (49,926) (38,193) (55,233) (55,233) 4955 Norman Park Ctr Prog Fees - (83) - - 4961 Special Interest Class Fees (401,740) (376,244) (437,875) (437,875) 4971 Tow Referral Fee (207,597) (136,609) (138,277) (128,659) 5061 Special Police Department Serv (68,874) (62,320) (53,150) (53,150) 5062 Police Reimbursements (1,433,653) (1,652,271) (1,692,675) (1,699,593) 5064 Witness Fee (6,600) (6,325) (5,000) (5,000) 5065 City Staff Time & Cost Recover (120,435) (274,160) (283,889) (203,889) 5066 Live Scan Services (33,465) (33,933) (30,000) (30,000) 5201 Animal Shelter Fees (243,680) (205,590) (273,200) (273,200) 5220 Measure P Reimbursements - - - 50,000 5231 Traffic Control Plan Fee (7,770) (4,831) (6,200) (6,200) 5241 Distressed Property Mgt Fee (7,910) (3,710) (9,800) (9,800) 5251 Special Event Fees (4,500) (4,200) (3,000) (3,000) 5252 Block Party Fees (400) (400) (500) (500) 5253 Professional Filming Fees (1,050) (1,050) (1,500) (1,500) Charges for Services Total (7,787,810) (8,768,734) (8,255,255) (8,407,756) Other Revenue 5301 Reimb - DIF (203,429) (55,109) (163,975) (163,975) 5331 Reimb - RDA Housing (4,975) (27) - - 5332 Reimb - CHIP (585) - (1,800) (1,800) 5341 Reimb - Open Space Dist (1,553,427) (1,574,631) (1,581,271) (1,437,349) 5342 Reimb - Assessment Dist (34,821) (19,866) (35,499) (35,499) 5343 Reimb - Comm Fac Distr (384,448) (483,191) (394,933) (394,933) 5351 Reimb - CIP Projects (3,937,318) (3,745,884) (4,475,271) (4,600,271) 5352 Reimb - DIF CIP (496,829) (507,453) - - 203 354 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 5361 Reimb - CDBG Admin (3,794) (3,932) (6,000) (6,000) 5362 Reimb - HOME Prog (3,637) (2,686) (4,000) (4,000) 5363 Reimb - CDBG CIP (36,805) (11,732) - - 5364 Reimb - CDBG Others (50,242) (50,095) (50,100) (50,100) 5365 Reimb - ESG Program - (884) - - 5371 Reimb - Other (2,918,536) (8,356,811) (1,679,304) (1,525,684) 5372 Reimb - Other City Funds (761,828) (1,251,164) (1,379,313) (1,379,313) 5373 Reimb - Parking Meter (51,570) (70,872) (51,749) (50,000) 5451 Proceeds of Long Term Debt (377,487) (1,285,053) - - 5453 Loan Repayments (1,304) (1,320) - - 5462 Gain on Disposal of Property (506) - (1,200) (1,200) 5463 Recoveries on Damaged Property (126,275) (202,086) (70,000) (70,000) 5481 Entertainment Facility Contrib (538,703) (610,997) (576,270) (576,270) 5491 P.Y. Revenue (314,314) (37,623) - - 5492 Cash Overage (902) (27,786) - - 5501 Donations (115,294) (55,722) (119,351) (98,251) 5502 Donated Assets (3) - - - 5511 Rebates/Refunds (233,491) (118,253) (72,214) (72,214) 5521 Miscellaneous Revenues (20,656) (54,980) - (8,000) 5522 Litigation Recovery (12,806) - - - 5523 City Administration Fee (75,167) (125,630) (82,380) (127,780) 5601 District Assessments (36,939) - (30,000) (30,000) 5651 Service Charge - A/R (65,485) (59,670) (75,000) (75,000) 5652 Past Due A/R - General (196) - - - 5653 Past Due A/R - Library - (10) - - 5656 Service Chg - Returned Cks (3,315) (4,181) (5,000) (5,000) 5702 Sales - Food/Beverage (1,708) (1,176) (2,400) (2,400) 5703 Sales - Supplies - - (250) (250) Other Revenue Total (12,366,795) (18,718,824) (10,857,280) (10,715,289) Transfers In 5999 Transfers In (9,837,957) (10,581,715) (11,206,503) (13,694,581) Transfers In Total (9,837,957) (10,581,715) (11,206,503) (13,694,581) 100 GENERAL FUND TOTAL (145,685,425) (157,498,347) (166,587,259) (174,677,180) 220 2016 Measure P Sales Tax 5452 Proceeds from Bond Sale - - (44,239,992) - 5999 Transfers In - (3,906,919) (16,320,000) (18,085,000) 220 2016 Measure P Sales Tax Total - (3,906,919) (60,559,992) (18,085,000) 221 Transportation Grants-Gas Tax 4401 Investment Earnings City Pool (42,291) (30,737) - - 204 355 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4404 Change in Fair Value of Invts (32,600) 22,439 - - 4522 St Gas Tax Section 2105 (1,448,479) (1,489,407) (1,540,653) (1,542,471) 4523 St Gas Tax Section 2106 (962,483) (978,295) (935,307) (993,995) 4524 St Gas Tax Section 2107 (1,886,118) (1,888,326) (1,990,300) (1,913,750) 4525 St Gas Tax Section 2107 5 (10,000) (10,000) (10,000) (10,000) 4526 St Gas Tax Section 2103 (1,325,279) (707,485) (1,061,283) (2,054,016) 4527 St Gas Tax RMRA - - - (4,449,043) 4528 St Gas Tax SB-1 Loan Repayment - - - (304,575) 221 Transportation Grants-Gas Tax Total (5,707,250) (5,081,811) (5,537,543) (11,267,850) 223 Utility Tax Settlement 4401 Investment Earnings City Pool (15,422) (9,307) - - 4404 Change in Fair Value of Invts (11,892) 6,796 - - 223 Utility Tax Settlement Total (27,314) (2,511) - - 227 Transportation Sales Tax 4013 Sales Tax for Transportation (2,535,464) (7,643,598) (6,087,000) (6,087,000) 4401 Investment Earnings City Pool (12,518) 8,980 - - 4404 Change in Fair Value of Invts (9,652) - - - 4701 Grant - Other Agency (990,450) (341,822) - - 5371 Reimb - Other (114,182) (62,358) - - 5999 Transfers In - (44,922) - - 227 Transportation Sales Tax Total (3,662,266) (8,083,720) (6,087,000) (6,087,000) 234 Advanced Life Support Program 4711 Contributions - Other Agencies (1,476,315) (1,549,195) (1,556,923) (1,556,923) 5511 Rebates/Refunds - (92) - - 234 Advanced Life Support Program Total (1,476,315) (1,549,287) (1,556,923) (1,556,923) 241 Parking Meter 4231 Parking Permits Space Rental (26,777) (24,082) (25,000) (25,000) 4331 Parking Citation (173,317) (194,376) (200,000) (200,000) 4401 Investment Earnings City Pool (12,408) (17,215) - - 4404 Change in Fair Value of Invts (9,563) 12,579 - - 4444 Parking Meters On Street (209,596) (193,782) (220,000) (220,000) 4445 Parking Meters Off Street (148,949) (128,548) (145,000) (145,000) 241 Parking Meter Total (580,610) (545,424) (590,000) (590,000) 243 Town Center I Parking District 4401 Investment Earnings City Pool (492) (635) - - 4404 Change in Fair Value of Invts (373) 453 - - 243 Town Center I Parking District Total (865) (182) - - 205 356 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 245 Traffic Safety 4313 Vehicle Code Fines (508,082) (483,114) (437,640) (437,640) 4401 Investment Earnings City Pool (946) (1,688) - - 4404 Change in Fair Value of Invts (729) 1,230 - - 245 Traffic Safety Total (509,757) (483,572) (437,640) (437,640) 256 Asset Seizure 4711 Contributions - Other Agencies - - (10,000) (10,000) 5524 Confiscated Funds - - (20,000) (20,000) 256 Asset Seizure Total - - (30,000) (30,000) 267 Permanent Endowments 4401 Investment Earnings City Pool (126) (157) - - 4404 Change in Fair Value of Invts (89) 108 - - 267 Permanent Endowments Total (215) (49) - - 269 Other Grants 4701 Grant - Other Agency (856,480) (576,902) (1,685,595) (1,685,595) 4711 Contributions - Other Agencies (56,140) (60,271) (30,000) (30,000) 5371 Reimb - Other (1,026) (4,540) - - 5453 Loan Repayments (43,891) (20,340) (22,333) (22,333) 5501 Donations - (8,405) - - 5521 Miscellaneous Revenues (87) (75) - - 5999 Transfers In - (50,000) (50,000) (50,000) 269 Other Grants Total (957,624) (720,533) (1,787,928) (1,787,928) 270 Mobile Park Fee 4401 Investment Earnings City Pool (1,772) (2,630) - - 4404 Change in Fair Value of Invts (1,369) 1,920 - - 5065 City Staff Time & Cost Recover (85,790) (67,410) (65,000) (65,000) 270 Mobile Park Fee Total (88,931) (68,120) (65,000) (65,000) 271 Local Grants 4401 Investment Earnings City Pool (709) (1,334) - - 4404 Change in Fair Value of Invts (551) 971 - - 4441 Pay Phones Revenue (24,079) (47,142) (20,000) (20,000) 4711 Contributions - Other Agencies (144,009) (218,641) (52,426) (52,426) 5492 Cash Overage - (5) - - 5524 Confiscated Funds (14,710) (36,081) - - 5701 Sales - Sundries (39,897) (37,219) (20,000) (20,000) 271 Local Grants Total (223,955) (339,451) (92,426) (92,426) 272 Federal Grants 206 357 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4401 Investment Earnings City Pool (18,574) (18,756) - - 4402 Investment Earnings Others (5,349) (118) - - 4403 Trustee Investment Earnings (39) (51) - - 4404 Change in Fair Value of Invts (14,310) 13,464 - - 4446 Rentals Leases Land Space (76,233) (44,862) (79,000) (93,000) 4501 State Grant SLESF (462,392) (526,474) (401,014) (401,014) 4503 PD State Grant RATT (1) - - - 4602 PD Fed Grant - HIDTA (CBAG) (2,274,892) (2,511,240) (2,541,856) (2,541,856) 4604 PD Fed Grant - OTS (440,375) (363,855) (75,168) (75,168) 4611 Federal Grant - Other (5,139,482) (6,452,168) (4,746,668) (8,725,935) 4612 PD DOJ (83,080) (153,181) (170,000) (170,000) 4613 PD Treasury (165,768) (10,469) (10,000) (10,000) 4701 Grant - Other Agency (383,554) (82,647) - - 5062 Police Reimbursements (123,841) (131,837) (140,296) (140,296) 5364 Reimb - CDBG Others (14,000) - - - 5371 Reimb - Other - (800) - - 5453 Loan Repayments (252,383) (122,640) - - 5999 Transfers In (138,759) (216,017) (244,884) (115,305) 272 Federal Grants Total (9,593,032) (10,621,651) (8,408,886) (12,272,574) 273 State Grants 4401 Investment Earnings City Pool 170 (3,803) - - 4404 Change in Fair Value of Invts (178) 2,783 - - 4511 State Grant (1,272,755) (1,727,276) (753,426) (2,150,642) 4701 Grant - Other Agency (135,000) - (74,275) (74,275) 5371 Reimb - Other (1,941) - - - 273 State Grants Total (1,409,704) (1,728,296) (827,701) (2,224,917) 282 Environmental Services 4401 Investment Earnings City Pool (12,192) (16,166) - - 4404 Change in Fair Value of Invts (9,403) 11,802 - - 4752 Dev Fees - Deposit Based (171) (1,202) - - 4953 Other Recreation Fees (264) - - - 5065 City Staff Time & Cost Recover (1,330) (1,060) - - 5221 Trash/Recyc AB939 Admin Fee (1,159,774) (1,190,586) (1,262,279) (1,262,279) 5371 Reimb - Other (267,368) (262,132) (110,000) (110,000) 5372 Reimb - Other City Funds (46,316) (48,822) (29,726) (29,726) 282 Environmental Services Total (1,496,818) (1,508,166) (1,402,005) (1,402,005) 301 Storm Drain 4211 Building Permits - - (23,750) (23,750) 4321 Storm Drain Ord Violation Fee (11,800) (5,008) (5,000) (5,000) 4401 Investment Earnings City Pool (1,971) (4,407) - - 207 358 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4404 Change in Fair Value of Invts (1,511) 3,215 - - 5011 Storm Drain Fees (605,207) (619,708) (555,500) (555,500) 5651 Service Charge - A/R (1,393) (1,818) - - 301 Storm Drain Total (621,882) (627,726) (584,250) (584,250) 311 CDBG Housing Program 4611 Federal Grant - Other - (26,352) (51,100) (51,100) 5453 Loan Repayments (4,175) (29,365) - - 311 CDBG Housing Program Total (4,175) (55,717) (51,100) (51,100) 313 Chula Vista Housing Authority 4401 Investment Earnings City Pool (9,278) (13,834) - - 4402 Investment Earnings Others - (15,643) - - 4404 Change in Fair Value of Invts (7,146) 10,097 - - 4752 Dev Fees - Deposit Based (592) (4,854) - - 4801 Dev Fees - Others - (919,228) - - 5065 City Staff Time & Cost Recover (1,000) - - - 5242 Bond Administrative Fees (193,524) (199,396) (100,000) (100,000) 5301 Reimb - DIF - (5,613) - - 5331 Reimb - RDA Housing (93,995) (115,713) (717,483) (385,937) 5332 Reimb - CHIP (8,878) (11,512) (35,000) (35,000) 5361 Reimb - CDBG Admin (300,976) (337,837) - (417,827) 5362 Reimb - HOME Prog (61,074) (81,624) (64,500) (91,814) 5364 Reimb - CDBG Others (84,538) (39,788) (50,000) (50,000) 5365 Reimb - ESG Program (16,926) (11,060) - (13,482) 5371 Reimb - Other (31,488) (18,000) (30,000) (30,000) 5372 Reimb - Other City Funds (53,802) (142,320) (98,000) (80,000) 5453 Loan Repayments (8,310) (192,651) - - 313 Chula Vista Housing Authority Total (871,527) (2,098,976) (1,094,983) (1,204,060) 316 Public Educational & Govt Fee 4022 Public Educational & Govt. Fee (664,470) (599,685) (600,000) (600,000) 4401 Investment Earnings City Pool (9,661) (16,152) - - 4404 Change in Fair Value of Invts (7,448) 11,802 - - 316 Public Educational & Govt Fee Total (681,579) (604,035) (600,000) (600,000) 318 RDA Successor Agency Fund 4005 Prop Tax in Lieu (271,708) (281,541) - - 4081 Property Tax Increment TCI (1,050,470) (698,332) (1,206,866) (1,206,866) 4082 Property Tax Increment Bayfron (834,987) (548,161) (1,343,080) (1,343,080) 4083 Prop Tax Increment Southwest (912,540) (725,885) (666,328) (666,328) 4084 Property Tax Increment TC II (516,640) (369,321) (480,043) (480,043) 4085 Property Tax Increment Otay Vl (849,504) (617,319) (697,538) (697,538) 208 359 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4086 Prop Tax Increment Merged Proj (878,838) (630,324) (573,295) (573,295) 4401 Investment Earnings City Pool (23,895) (22,338) - - 4404 Change in Fair Value of Invts (18,415) 16,311 - - 5999 Transfers In - (3,706) (3,709) (3,709) 318 RDA Successor Agency Fund Total (5,356,997) (3,880,616) (4,970,859) (4,970,859) 319 Housing Successor Agency 4401 Investment Earnings City Pool (54,895) (79,184) - - 4402 Investment Earnings Others (900,442) (444,970) (200,000) (200,000) 4404 Change in Fair Value of Invts (42,323) 57,823 - - 4446 Rentals Leases Land Space (11,628) (14,070) (15,000) (15,000) 5065 City Staff Time & Cost Recover (6,208) (12,000) - - 5453 Loan Repayments (629,292) (688,573) (200,000) (255,000) 319 Housing Successor Agency Total (1,644,788) (1,180,974) (415,000) (470,000) 341 Public Liability Trust 5371 Reimb - Other - (2,158,606) - - 5999 Transfers In (500,681) (1,311,474) (1,284,078) (1,284,078) 341 Public Liability Trust Total (500,681) (3,470,080) (1,284,078) (1,284,078) 342 CFD 11-M Rolling Hills McM 4401 Investment Earnings City Pool (2,126) (2,707) - - 4404 Change in Fair Value of Invts (1,635) 1,985 - - 5601 District Assessments (95,518) (167,469) (169,681) (180,505) 342 CFD 11-M Rolling Hills McM Total (99,279) (168,191) (169,681) (180,505) 343 CFD 12-M Otay Ranch Village 7 4401 Investment Earnings City Pool (4,152) (4,582) - - 4404 Change in Fair Value of Invts (3,200) 3,344 - - 5601 District Assessments (194,893) (358,095) (365,547) (511,707) 343 CFD 12-M Otay Ranch Village 7 Total (202,245) (359,333) (365,547) (511,707) 344 CFD 13-M Otay Ranch Village 2 4401 Investment Earnings City Pool (3,832) (5,865) - - 4404 Change in Fair Value of Invts (2,951) 4,272 - - 5601 District Assessments (190,402) (331,782) (340,796) (474,860) 344 CFD 13-M Otay Ranch Village 2 Total (197,185) (333,375) (340,796) (474,860) 345 CFD 12M Village 7 Otay Ranch 4401 Investment Earnings City Pool (5,233) (7,970) - - 4404 Change in Fair Value of Invts (4,035) 5,825 - - 5601 District Assessments (449,733) (494,514) (503,247) (538,749) 345 CFD 12M Village 7 Otay Ranch Total (459,001) (496,659) (503,247) (538,749) 209 360 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 346 CFD 14M-A-EUC Millenia 4401 Investment Earnings City Pool (1,255) (4,421) - - 4404 Change in Fair Value of Invts (960) 3,236 - - 5601 District Assessments (282,947) (220,116) (224,334) (231,062) 346 CFD 14M-A-EUC Millenia Total (285,162) (221,301) (224,334) (231,062) 347 CFD 14M-B-EUC Millenia 5601 District Assessments - - (67,823) (125,842) 5999 Transfers In - - - (67,823) 347 CFD 14M-B-EUC Millenia Total - - (67,823) (125,842) 348 CFD 18M Village 3 Otay Ranch 5601 District Assessments - - (657,277) (33,298) 348 CFD 18M Village 3 Otay Ranch Total - - (657,277) (33,298) 349 CFD 19M Freeway Commercial 2 5601 District Assessments - - (130,546) (133,157) 349 CFD 19M Freeway Commercial 2 Total - - (130,546) (133,157) 351 Town Center Landscape Dist I 4401 Investment Earnings City Pool (241) (311) - - 4404 Change in Fair Value of Invts (178) 237 - - 351 Town Center Landscape Dist I Total (419) (74) - - 352 Bay Blvd Landscape District 4401 Investment Earnings City Pool (396) (505) - - 4404 Change in Fair Value of Invts (302) 367 - - 5601 District Assessments - (10,581) (12,500) (12,875) 352 Bay Blvd Landscape District Total (698) (10,719) (12,500) (12,875) 353 Eastlake Maintenance Dist I 4401 Investment Earnings City Pool (3,394) (4,121) - - 4404 Change in Fair Value of Invts (2,613) 2,999 - - 5511 Rebates/Refunds (20,544) - - - 5601 District Assessments (276,486) (332,556) (351,035) (361,567) 353 Eastlake Maintenance Dist I Total (303,037) (333,678) (351,035) (361,567) 354 Open Space District #01 4401 Investment Earnings City Pool (675) (695) - - 4404 Change in Fair Value of Invts (515) 518 - - 5601 District Assessments (83,396) (83,784) (85,441) (88,004) 354 Open Space District #01 Total (84,586) (83,961) (85,441) (88,004) 210 361 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 355 Open Space District #02 4401 Investment Earnings City Pool 19 66 - - 5601 District Assessments (14,549) (14,702) (15,063) (15,515) 355 Open Space District #02 Total (14,530) (14,636) (15,063) (15,515) 356 Open Space District #03 4401 Investment Earnings City Pool (316) (317) - - 4404 Change in Fair Value of Invts (249) 237 - - 5601 District Assessments (49,787) (53,826) (52,602) (54,180) 356 Open Space District #03 Total (50,352) (53,906) (52,602) (54,180) 357 Open Space District #04 4401 Investment Earnings City Pool (866) (1,079) - - 4404 Change in Fair Value of Invts (675) 798 - - 5601 District Assessments (87,958) (98,277) (91,867) (94,623) 357 Open Space District #04 Total (89,499) (98,558) (91,867) (94,623) 358 Open Space District #05 4401 Investment Earnings City Pool (393) (503) - - 4404 Change in Fair Value of Invts (302) 367 - - 5601 District Assessments (52,197) (51,053) (52,045) (53,606) 358 Open Space District #05 Total (52,892) (51,189) (52,045) (53,606) 359 Open Space District #06 4401 Investment Earnings City Pool (328) (439) - - 4404 Change in Fair Value of Invts (249) 324 - - 5601 District Assessments (32,978) (33,310) (34,178) (35,203) 359 Open Space District #06 Total (33,555) (33,425) (34,178) (35,203) 361 Open Space District #07 4401 Investment Earnings City Pool (234) (298) - - 4404 Change in Fair Value of Invts (178) 216 - - 5601 District Assessments (3,384) (8,843) (14,736) (15,178) 361 Open Space District #07 Total (3,796) (8,925) (14,736) (15,178) 362 Open Space District #08 4401 Investment Earnings City Pool (461) (458) - - 4404 Change in Fair Value of Invts (356) 324 - - 5601 District Assessments (70,508) (75,767) (74,058) (76,280) 362 Open Space District #08 Total (71,325) (75,901) (74,058) (76,280) 363 Open Space District #09 211 362 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4401 Investment Earnings City Pool (347) (214) - - 4404 Change in Fair Value of Invts (267) 151 - - 5601 District Assessments (71,474) (71,940) (73,459) (75,663) 363 Open Space District #09 Total (72,088) (72,003) (73,459) (75,663) 364 Open Space District #10 4401 Investment Earnings City Pool (777) (865) - - 4404 Change in Fair Value of Invts (604) 626 - - 5601 District Assessments (81,392) (82,974) (84,563) (87,100) 364 Open Space District #10 Total (82,773) (83,213) (84,563) (87,100) 365 Open Space District #11 4401 Investment Earnings City Pool (1,651) (2,058) - - 4404 Change in Fair Value of Invts (1,280) 1,510 - - 5601 District Assessments (166,557) (168,691) (172,143) (177,307) 365 Open Space District #11 Total (169,488) (169,239) (172,143) (177,307) 366 Open Space District #13 4401 Investment Earnings City Pool (5) (6) - - 366 Open Space District #13 Total (5) (6) - - 367 Open Space District #14 4401 Investment Earnings City Pool (217) (32) - - 4404 Change in Fair Value of Invts (160) 22 - - 5601 District Assessments (348,514) (355,099) (361,460) (372,304) 367 Open Space District #14 Total (348,891) (355,109) (361,460) (372,304) 368 Open Space District #15 4401 Investment Earnings City Pool 2 149 - - 5601 District Assessments (22,106) (22,272) (22,905) (23,592) 368 Open Space District #15 Total (22,104) (22,123) (22,905) (23,592) 369 Open Space District #17 4401 Investment Earnings City Pool (68) (82) - - 4404 Change in Fair Value of Invts (53) 65 - - 5601 District Assessments (8,537) (8,677) (8,848) (9,113) 369 Open Space District #17 Total (8,658) (8,694) (8,848) (9,113) 371 Open Space District #18 4401 Investment Earnings City Pool (1,740) (2,621) - - 4404 Change in Fair Value of Invts (1,333) 1,920 - - 5601 District Assessments (171,648) (176,823) (177,836) (183,171) 371 Open Space District #18 Total (174,721) (177,524) (177,836) (183,171) 212 363 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 372 Open Space District #20 4401 Investment Earnings City Pool (14,257) (17,804) - - 4404 Change in Fair Value of Invts (10,985) 13,010 - - 5601 District Assessments (1,373,391) (1,451,373) (1,479,914) (1,524,326) 372 Open Space District #20 Total (1,398,633) (1,456,167) (1,479,914) (1,524,326) 373 Open Space District #23 4401 Investment Earnings City Pool (652) (988) - - 4404 Change in Fair Value of Invts (498) 712 - - 5601 District Assessments (50,947) (49,992) (49,966) (52,483) 373 Open Space District #23 Total (52,097) (50,268) (49,966) (52,483) 374 Open Space District #24 4401 Investment Earnings City Pool (36) 65 - - 4404 Change in Fair Value of Invts (36) - - - 5601 District Assessments (30,495) (30,560) (31,150) (32,085) 374 Open Space District #24 Total (30,567) (30,495) (31,150) (32,085) 375 Open Space District #26 4401 Investment Earnings City Pool (8) 15 - - 5601 District Assessments (11,209) (11,392) (11,613) (11,961) 375 Open Space District #26 Total (11,217) (11,377) (11,613) (11,961) 376 Open Space District #31 4401 Investment Earnings City Pool (1,505) (2,622) - - 4404 Change in Fair Value of Invts (1,155) 1,920 - - 5601 District Assessments (172,656) (185,855) (189,419) (195,121) 376 Open Space District #31 Total (175,316) (186,557) (189,419) (195,121) 378 CFD 07M Eastlake Woods & Vista 4401 Investment Earnings City Pool (6,487) (6,270) - - 4404 Change in Fair Value of Invts (4,995) 4,574 - - 5601 District Assessments (273,207) (676,333) (686,876) (889,417) 378 CFD 07M Eastlake Woods & Vista Tota (284,689) (678,029) (686,876) (889,417) 379 CFD 08M Vlg 6 McMillin & OR 4401 Investment Earnings City Pool (14,284) (22,562) - - 4404 Change in Fair Value of Invts (11,021) 16,484 - - 5601 District Assessments (1,089,848) (1,293,328) (1,317,286) (1,496,836) 379 CFD 08M Vlg 6 McMillin & OR Total (1,115,153) (1,299,406) (1,317,286) (1,496,836) 380 CFD 09M ORV II Brookfield-Shea 213 364 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4401 Investment Earnings City Pool (8,723) (13,867) - - 4404 Change in Fair Value of Invts (6,719) 10,119 - - 5601 District Assessments (946,254) (1,103,327) (1,122,910) (1,314,802) 380 CFD 09M ORV II Brookfield-Shea Total (961,696) (1,107,075) (1,122,910) (1,314,802) 382 CFD 99-2 Otay Ranch Vlg 1 West 4401 Investment Earnings City Pool (8,751) (11,641) - - 4404 Change in Fair Value of Invts (6,755) 8,501 - - 5601 District Assessments (758,043) (873,109) (887,430) (1,006,630) 382 CFD 99-2 Otay Ranch Vlg 1 West Total (773,549) (876,249) (887,430) (1,006,630) 383 Town Ctr Business Improv Dist 4401 Investment Earnings City Pool (399) (786) - - 4404 Change in Fair Value of Invts (302) 583 - - 5601 District Assessments 2,990 - - - 383 Town Ctr Business Improv Dist Total 2,289 (203) - - 386 Otay Ranch Preserve 4401 Investment Earnings City Pool (4,364) (7,455) - - 4404 Change in Fair Value of Invts (3,360) 5,437 - - 5601 District Assessments (662,992) (733,305) (743,651) (765,961) 386 Otay Ranch Preserve Total (670,716) (735,323) (743,651) (765,961) 387 CFD 98-3 Sunbow 2 4401 Investment Earnings City Pool (7,317) (9,775) - - 4404 Change in Fair Value of Invts (5,635) 7,142 - - 5601 District Assessments (835,710) (979,176) (998,072) (1,027,986) 387 CFD 98-3 Sunbow 2 Total (848,662) (981,809) (998,072) (1,027,986) 388 CFD 97-1 Otay Ranch 4401 Investment Earnings City Pool (31,547) (46,621) - - 4404 Change in Fair Value of Invts (24,316) 34,046 - - 5601 District Assessments (2,473,654) (2,814,204) (2,851,127) (3,085,674) 388 CFD 97-1 Otay Ranch Total (2,529,517) (2,826,779) (2,851,127) (3,085,674) 389 Otay Ranch Village 1,2,6,7,12 4401 Investment Earnings City Pool (1,566) (1,992) - - 4404 Change in Fair Value of Invts (1,209) 1,446 - - 389 Otay Ranch Village 1,2,6,7,12 Total (2,775) (546) - - 391 Central Garage Fund 5065 City Staff Time & Cost Recover (67,419) (97,624) (35,000) (35,000) 5463 Recoveries on Damaged Property (16,854) (20,462) (20,168) (20,168) 214 365 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 5471 Billings to Other Departments (3,439,074) (3,108,681) (3,364,108) (3,369,667) 5511 Rebates/Refunds (334) (1,947) - - 5999 Transfers In - - (85,267) - 391 Central Garage Fund Total (3,523,681) (3,228,714) (3,504,543) (3,424,835) 392 Equipment Vehicle Replacement 4401 Investment Earnings City Pool (8,490) (14,448) - - 4404 Change in Fair Value of Invts (6,541) 10,550 - - 4421 Sale of Other Personal Prop (3,600) (14,770) - - 5462 Gain on Disposal of Property (36,094) (8,970) - - 5463 Recoveries on Damaged Property (234,731) (6,029) - - 5999 Transfers In (340,035) - - - 392 Equipment Vehicle Replacement Total (629,491) (33,667) - - 398 Workers Compensation Fund 5371 Reimb - Other (1,189,728) - (25,000) (25,000) 5461 Recoveries on Lien & W/C Overp (130,230) (200,513) (100,000) (100,000) 5471 Billings to Other Departments (3,117,129) (3,394,715) (4,904,123) (4,904,123) 5999 Transfers In (503,346) (1,500,000) - - 398 Workers Compensation Fund Total (4,940,433) (5,095,228) (5,029,123) (5,029,123) 401 Bayfront Trolley Station 4401 Investment Earnings City Pool (778) (1,005) - - 4404 Change in Fair Value of Invts (604) 734 - - 5343 Reimb - Comm Fac Distr - (257) - - 401 Bayfront Trolley Station Total (1,382) (528) - - 402 Chula Vista Transit 4401 Investment Earnings City Pool 842 1,848 - - 4421 Sale of Other Personal Prop (18,362) - - - 5521 Miscellaneous Revenues (16,429) - - - 402 Chula Vista Transit Total (33,949) 1,848 - - 403 Transit Capital Projects 4401 Investment Earnings City Pool (4,041) (4,902) - - 4404 Change in Fair Value of Invts (3,111) 3,582 - - 403 Transit Capital Projects Total (7,152) (1,320) - - 406 Chula Vista Muni Golf Course 4462 Rentals Leases Buildings - - (132,580) (132,580) 406 Chula Vista Muni Golf Course Total - - (132,580) (132,580) 408 Development Services Fund 215 366 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4101 State Fee SB1186 (8,114) (8,359) (7,000) (7,000) 4211 Building Permits (1,591,437) (2,109,476) (1,539,399) (3,225,405) 4212 Plumbing Permits (292,560) (286,936) (333,785) (333,785) 4213 Electrical Permits (113,751) (121,977) (146,745) (82,115) 4214 Sewer Connection Permits (20,553) (33,144) (15,000) (30,000) 4215 Utility Permits (52,598) (32,348) (27,700) (27,700) 4751 Planning Fees (258,262) (228,562) (118,884) (245,884) 4752 Dev Fees - Deposit Based (1,896,871) (2,021,181) (2,916,943) (3,388,935) 4761 Sale of Maps & Publication (220) (397) (500) (500) 4771 Plan Checking Fees (1,801,080) (1,871,614) (2,504,755) (2,136,755) 4781 Engineering Fees (22,813) (27,181) (119,040) (49,040) 4783 Strong Motion Instrument Prog (33,250) (44,818) (35,000) (35,000) 4813 Certificate of Occupancy Fee - - (2,000) (2,000) 5065 City Staff Time & Cost Recover (250) (275) - - 5301 Reimb - DIF (42,264) (240,809) (489,407) (76,000) 5332 Reimb - CHIP - (171) - - 5343 Reimb - Comm Fac Distr (4,660) (25,602) (175,000) (100,000) 5351 Reimb - CIP Projects (136,602) (145,105) (510,255) (179,979) 5352 Reimb - DIF CIP (11,536) (20,117) - - 5363 Reimb - CDBG CIP (2,038) - - - 5372 Reimb - Other City Funds (258,076) (72,836) (34,485) (34,485) 5463 Recoveries on Damaged Property (13,200) - - - 5491 P.Y. Revenue (3,634) (1,620) - - 5999 Transfers In (626,616) (841,760) (863,791) (463,791) 408 Development Services Fund Total (7,190,385) (8,134,288) (9,839,689) (10,418,374) 409 CV Elite Athlete Training Ctr 4711 Contributions - Other Agencies - - (339,263) (68,500) 5999 Transfers In - (154,370) (20,000) (120,000) 409 CV Elite Athlete Training Ctr Total - (154,370) (359,263) (188,500) 411 Sewer Income 4401 Investment Earnings City Pool (19,264) (24,850) - - 4404 Change in Fair Value of Invts (14,860) 18,145 - - 5005 Sewer Income Assessments (1,200) - - - 411 Sewer Income Total (35,324) (6,705) - - 412 Special Sewer 4401 Investment Earnings City Pool (4) (5) - - 412 Special Sewer Total (4) (5) - - 414 Sewer Service Revenue 4214 Sewer Connection Permits (40,502) (38,756) (40,000) (40,000) 216 367 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 4401 Investment Earnings City Pool (309,260) (447,760) - - 4404 Change in Fair Value of Invts (238,455) 326,956 - - 4421 Sale of Other Personal Prop - (119,699) - - 4752 Dev Fees - Deposit Based (36,706) (64,931) (18,500) (18,500) 5001 Sewer Service Charges (28,622,255) (28,980,176) (27,112,322) (27,112,322) 5006 Montgomery Sewer Charges (3,115,699) (3,235,804) (3,695,377) (3,695,377) 5051 Pump Sta Maintenance (58,202) (68,881) - - 5065 City Staff Time & Cost Recover (4,615) (9,512) - - 5341 Reimb - Open Space Dist (1,621) (1,306) - - 5343 Reimb - Comm Fac Distr - (33,333) - - 5351 Reimb - CIP Projects (64,231) (72,439) (15,000) (15,000) 5352 Reimb - DIF CIP - (587) - - 5372 Reimb - Other City Funds - (703) - - 5462 Gain on Disposal of Property (4,196) (115,702) - - 5491 P.Y. Revenue (28,991) - - - 5511 Rebates/Refunds - (658,626) - - 5601 District Assessments (246) (490) - - 5651 Service Charge - A/R (167,052) (129,359) (100,000) (100,000) 5652 Past Due A/R - General (265,834) (304,462) (300,000) (300,000) 5999 Transfers In (150,000) (150,000) (150,000) (150,000) 414 Sewer Service Revenue Total (33,107,865) (34,105,570) (31,431,199) (31,431,199) 428 Sewer Facility Replacement 4401 Investment Earnings City Pool (110,898) (143,266) - - 4402 Investment Earnings Others 4,488 - (51,726) (51,726) 4404 Change in Fair Value of Invts (85,499) 104,620 - - 5003 Sewer Facility Replacement Fee (1,378,090) (1,454,576) (1,405,000) (1,405,000) 5371 Reimb - Other (352,545) - - - 5521 Miscellaneous Revenues (568) - - - 5651 Service Charge - A/R (6,349) (7,591) - - 5999 Transfers In (326,596) (349) - - 428 Sewer Facility Replacement Total (2,256,057) (1,501,162) (1,456,726) (1,456,726) 430 Sewer DIFs 4401 Investment Earnings City Pool (424,571) (573,703) - - 4402 Investment Earnings Others 175,050 - (250,000) (227,000) 4404 Change in Fair Value of Invts (326,976) 418,675 - - 5002 Sewerage Facility Participatn (2,093,172) (2,208,737) (1,000,000) (1,000,000) 5004 Sewer Connection Fees (6,290) - - - 5501 Donations (306,884) - - - 5792 DIF - Swr Basin Salt Creek (175,320) (11,559) (380,000) (380,000) 5793 DIF - Swr Basin Poggi Cyn (63,823) (100,348) (20,000) (20,000) 5999 Transfers In (7,964,912) (22,627) (200,000) (200,000) 217 368 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 430 Sewer DIFs Total (11,186,898) (2,498,299) (1,850,000) (1,827,000) 442 CDBG Section 108 Loan 5999 Transfers In (758,243) (759,858) (762,200) (764,000) 442 CDBG Section 108 Loan Total (758,243) (759,858) (762,200) (764,000) 451 Long Term Debt - City of CV 5999 Transfers In (3,678,423) (290,000) (1,385,000) - 451 Long Term Debt - City of CV Total (3,678,423) (290,000) (1,385,000) - 452 Equipment Lease Fund 4401 Investment Earnings City Pool (1,811) (2,360) - - 4404 Change in Fair Value of Invts (1,404) 1,726 - - 5371 Reimb - Other (52,048) (45,168) (39,000) (34,000) 5999 Transfers In (296,100) (518,162) (555,540) (312,000) 452 Equipment Lease Fund Total (351,363) (563,964) (594,540) (346,000) 453 Energy Conservation Loans 4401 Investment Earnings City Pool (3,479) (4,570) - - 4404 Change in Fair Value of Invts (2,684) 3,344 - - 5371 Reimb - Other (144,968) (364,842) (129,000) (258,000) 5999 Transfers In (682,848) (532,001) (509,400) (559,600) 453 Energy Conservation Loans Total (833,979) (898,069) (638,400) (817,600) 472 2004 COP Civ Ctr Proj Phase I 4401 Investment Earnings City Pool (12) - - - 4403 Trustee Investment Earnings (546,503) - - - 4404 Change in Fair Value of Invts (18) - - - 5999 Transfers In (30,281,616) - - - 472 2004 COP Civ Ctr Proj Phase I Total (30,828,149) - - - 473 2006 COP Civ Ctr Proj Phase 2 4401 Investment Earnings City Pool 356 (48) - - 4403 Trustee Investment Earnings (59,438) (22,686) - - 4404 Change in Fair Value of Invts - 43 - - 5999 Transfers In (8,335,892) (7,768,479) - - 473 2006 COP Civ Ctr Proj Phase 2 Total (8,394,974) (7,791,170) - - 474 2010 COP Refinance 4401 Investment Earnings City Pool 936 (331) - - 4403 Trustee Investment Earnings (1,768) (637) - - 4404 Change in Fair Value of Invts - 237 - - 5999 Transfers In (2,487,037) (28,091,002) - - 218 369 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 474 2010 COP Refinance Total (2,487,869) (28,091,733) - - 475 2014 COP Refunding 4403 Trustee Investment Earnings (1,061) (2,601) - - 5999 Transfers In (3,606,888) (3,597,836) (3,603,500) (3,608,000) 475 2014 COP Refunding Total (3,607,949) (3,600,437) (3,603,500) (3,608,000) 476 2015 Refunding COP 4401 Investment Earnings City Pool 35 (13,576) - - 4403 Trustee Investment Earnings (77,676) (3,000) - - 5452 Proceeds from Bond Sale (34,330,000) - - - 5454 Bond Premium (2,262,493) - - - 5999 Transfers In (4,647,540) (2,904,321) (2,931,200) (2,929,000) 476 2015 Refunding COP Total (41,317,674) (2,920,897) (2,931,200) (2,929,000) 477 2016 Ref COP Civic Ctr/Nature 4403 Trustee Investment Earnings - (1,150) - - 5452 Proceeds from Bond Sale - (7,681,520) - - 5454 Bond Premium - (1,238,132) - - 5999 Transfers In - (168,889) (288,000) (288,000) 477 2016 Ref COP Civic Ctr/Nature Total - (9,089,691) (288,000) (288,000) 478 2016 LRRB PFDIF/COP 4403 Trustee Investment Earnings - (111) - - 5452 Proceeds from Bond Sale - (25,885,000) - - 5454 Bond Premium - (2,516,621) - - 5999 Transfers In - (2,171,441) (2,149,000) (2,158,000) 478 2016 LRRB PFDIF/COP Total - (30,573,173) (2,149,000) (2,158,000) 479 2017 CREBs LRBs 5371 Reimb - Other - - - (314,139) 5999 Transfers In - - - (192,817) 479 2017 CREBs LRBs Total - - - (506,956) 507 Otay Valley Rd AD 90-2 Impvt 4401 Investment Earnings City Pool (799) (1,031) - - 4404 Change in Fair Value of Invts (622) 755 - - 507 Otay Valley Rd AD 90-2 Impvt Total (1,421) (276) - - 508 Assessment District 97-2 4401 Investment Earnings City Pool (1,141) (505) - - 4404 Change in Fair Value of Invts (871) 367 - - 5999 Transfers In (285,803) (24,864) - - 219 370 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 508 Assessment District 97-2 Total (287,815) (25,002) - - 511 OV Rd Fee Recovery District 4401 Investment Earnings City Pool (8,865) (11,458) - - 4404 Change in Fair Value of Invts (6,843) 8,371 - - 5782 Thoroughfare Fee (Recov Dist) (3,861) - - - 511 OV Rd Fee Recovery District Total (19,569) (3,087) - - 512 EL Greens II AD 94-1 Imprvmnt 4401 Investment Earnings City Pool (10,927) (14,091) - - 4404 Change in Fair Value of Invts (8,425) 10,292 - - 512 EL Greens II AD 94-1 Imprvmnt Total (19,352) (3,799) - - 515 Twin Oaks Ave AD 96-1 Imprvmnt 4401 Investment Earnings City Pool (211) (273) - - 4404 Change in Fair Value of Invts (160) 194 - - 515 Twin Oaks Ave AD 96-1 Imprvmnt Tota (371) (79) - - 516 Oxford St AD 97-1 Improvement 4401 Investment Earnings City Pool (42) (54) - - 4404 Change in Fair Value of Invts (36) 43 - - 516 Oxford St AD 97-1 Improvement Total (78) (11) - - 517 AD2004-1 Dixon Drive 4401 Investment Earnings City Pool (236) (382) - - 4404 Change in Fair Value of Invts (178) 280 - - 5602 Special Assessment Receipts (9,359) - - - 517 AD2004-1 Dixon Drive Total (9,773) (102) - - 518 AD2005-1 Tobias Drive 4401 Investment Earnings City Pool (181) (347) - - 4404 Change in Fair Value of Invts (142) 259 - - 5602 Special Assessment Receipts (9,427) (9,429) - - 518 AD2005-1 Tobias Drive Total (9,750) (9,517) - - 542 Drainage DIF 4401 Investment Earnings City Pool (42,941) (50,166) - - 4404 Change in Fair Value of Invts (33,115) 36,635 - - 542 Drainage DIF Total (76,056) (13,531) - - 560 Public Facilities DIF 4401 Investment Earnings City Pool (92,563) (114,506) - - 4404 Change in Fair Value of Invts (182,906) 215,885 - - 220 371 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 5521 Miscellaneous Revenues (225) - - - 5751 DIF PF - Admin (400,211) (335,837) (400,000) (400,000) 5752 DIF PF - Civic Ctr Expansion (1,863,467) (739,229) (760,000) (760,000) 5753 DIF PF - Police Fac Remodel (1,251,452) (996,554) (1,360,000) (1,360,000) 5754 DIF PF - Corp Yard Relocation (293,095) (224,922) (260,000) (260,000) 5755 DIF PF - Libraries-East Terr (1,097,335) (921,107) (1,190,000) (1,190,000) 5756 DIF PF - Fire Supp Sys Exp (735,374) (612,534) (780,000) (780,000) 5771 DIF PF - Recreation Facilities (832,957) (699,473) (550,000) (550,000) 5999 Transfers In (2,552) - - - 560 Public Facilities DIF Total (6,752,137) (4,428,277) (5,300,000) (5,300,000) 580 Pedestrian Bridge DIFs 4401 Investment Earnings City Pool (41,726) (57,518) - - 4404 Change in Fair Value of Invts (32,155) 42,007 - - 5811 DIF - Ped Bridge - Otay Ranch (253,537) (285,102) (145,000) (145,000) 580 Pedestrian Bridge DIFs Total (327,418) (300,613) (145,000) (145,000) 590 Transportation DIFs 4401 Investment Earnings City Pool (156,885) (229,190) - - 4402 Investment Earnings Others 73,872 - - (9,000) 4404 Change in Fair Value of Invts (120,979) 167,362 - - 4812 Traffic Signal Fee (184,401) (183,663) (200,000) (200,000) 5781 DIF - Transportation (1,726,223) (3,524,854) (1,591,600) (1,591,600) 5999 Transfers In (2,607,030) (13,485) (1,035,000) (1,035,000) 590 Transportation DIFs Total (4,721,646) (3,783,830) (2,826,600) (2,835,600) 661 05 ERAF - SA 4401 Investment Earnings City Pool (15) (22) - - 4404 Change in Fair Value of Invts (18) 22 - - 5371 Reimb - Other (800) - - - 661 05 ERAF - SA Total (833) - - - 662 06 ERAF - SA 4401 Investment Earnings City Pool 7 (21) - - 4404 Change in Fair Value of Invts - - - - 5371 Reimb - Other - (625) - - 5999 Transfers In (127,792) - - - 662 06 ERAF - SA Total (127,785) (646) - - 663 06 TABs Series A - SA 4401 Investment Earnings City Pool 164 (56) - - 4403 Trustee Investment Earnings (662) (207) - - 4404 Change in Fair Value of Invts - 43 - - 221 372 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 5999 Transfers In (1,027,241) (9,730,142) - - 663 06 TABs Series A - SA Total (1,027,739) (9,730,362) - - 664 06 TABs Series B - SA 4401 Investment Earnings City Pool 344 (23) - - 4403 Trustee Investment Earnings (51,225) (344,414) - - 5999 Transfers In (944,843) (9,111,657) - - 664 06 TABs Series B - SA Total (995,724) (9,456,094) - - 665 08 TABs - SA 4401 Investment Earnings City Pool 351 175 - - 4403 Trustee Investment Earnings (1,015) (314) - - 5999 Transfers In (1,540,424) (21,842,454) - - 665 08 TABs - SA Total (1,541,088) (21,842,593) - - 666 2016 TARBs 4403 Trustee Investment Earnings - (79) - - 5454 Bond Premium - (4,453,409) - - 5999 Transfers In - (7,185,979) (2,563,000) (2,802,925) 666 2016 TARBs Total - (11,639,467) (2,563,000) (2,802,925) 692 Long-Term Advances DSF-RDA SA 5999 Transfers In (1,422,675) (791,419) - - 692 Long-Term Advances DSF-RDA SA Tota (1,422,675) (791,419) - - 713 Capital Improvement Projects 4401 Investment Earnings City Pool (1,895) 150 - - 4404 Change in Fair Value of Invts (1,458) - - - 5371 Reimb - Other (445,508) - - (2,100,620) 5999 Transfers In - (15,594) - - 713 Capital Improvement Projects Total (448,861) (15,444) - (2,100,620) 715 Parkland Acquisition & DevFees 4401 Investment Earnings City Pool (302,161) (413,666) - - 4402 Investment Earnings Others 72,200 - - 11,000 4404 Change in Fair Value of Invts (232,980) 302,058 - - 5801 Park Dedication Fee (3,114,018) (470,567) (600,000) (600,000) 5999 Transfers In (805,000) (10,782) (50,000) (50,000) 715 Parkland Acquisition & DevFees Total (4,381,959) (592,957) (650,000) (639,000) 716 Western-Park Acquisition & Dev 4401 Investment Earnings City Pool (3,705) (1,282) - - 4404 Change in Fair Value of Invts (2,862) 928 - - 222 373 FY 2016 ACTUALS FY 2017 ACTUALS FY 2018 ADOPTED FY 2019 PROPOSED FUND/ACCOUNT 5801 Park Dedication Fee (89,595) - (100,000) (100,000) 716 Western-Park Acquisition & Dev Total (96,162) (354) (100,000) (100,000) 717 Residential Construction Tax 4061 Residential Construction Tax (185,625) (416,050) (325,505) (325,505) 4401 Investment Earnings City Pool (3,656) 2,136 - - 4404 Change in Fair Value of Invts (2,826) - - - 5999 Transfers In (328,837) (343,910) (410,396) - 717 Residential Construction Tax Total (520,944) (757,824) (735,901) (325,505) 723 Bicycle Facilities Fund 4701 Grant - Other Agency (21,137) (74,372) (65,000) (65,000) 723 Bicycle Facilities Fund Total (21,137) (74,372) (65,000) (65,000) 725 Industrial Development Auth. 4401 Investment Earnings City Pool - (1) - - 725 Industrial Development Auth. Total - (1) - - 735 Transportation Partnership 4401 Investment Earnings City Pool (279) (222) - - 4404 Change in Fair Value of Invts (213) 173 - - 735 Transportation Partnership Total (492) (49) - - 736 Other Transportation Program 4511 State Grant - 6,400 - - 4611 Federal Grant - Other (3,256,871) (3,146,676) (8,002,203) (2,176,107) 4701 Grant - Other Agency (22,866) (151,249) - - 736 Other Transportation Program Total (3,279,737) (3,291,525) (8,002,203) (2,176,107) 741 Prop 1B Highway Safety 4401 Investment Earnings City Pool (439) (266) - - 4404 Change in Fair Value of Invts (338) 194 - - 741 Prop 1B Highway Safety Total (777) (72) - - GRAND TOTAL, ALL FUNDS (374,042,840) (423,626,491) (363,826,644) (336,992,006) 223 374 224 375 ʹͲͳͻ 225 376 226 377 FUND/ACCOUNT DESCRIPTION FY 2019 Proposed 100 GENERAL FUND 221 Gas Tax Reimbursement for street related staff time, materials, and utilities 4,364,371$ 234 Advanced Life Support Fund Staff time reimbursement 972,453$ 245 Traffic Safety Reimbursement for Police fleet maintenance costs 399,140$ 272 Federal Grants Fund Staff time reimbursement 918,027$ 282 Environmental Services Reimbursement for allocated overhead costs 107,585$ 313 CV Housing Authority Fund Reimbursement for allocated overhead costs 181,572$ 406 Chula Vista Municipal Golf Course City's share of golf course operational revenues 132,580$ 408 Development Services Reimbursement for allocated overhead costs 1,923,648$ 414 Sewer Service Revenue Reimbursement for Sewer related staff time and materials 3,202,097$ 451 Long-term Advances DSF - City Interfund loan payment 1,493,108$ TOTAL TRANSFERS IN - 100 GENERAL FUND 13,694,581$ 201 MEASURE P SALES TAX FUND 100 General Fund Transfer Measure P Sales Tax from General Fund 18,085,000$ TOTAL TRANSFERS IN - 201 18,085,000$ 269 Other Grant Funds 100 General Fund General Fund match for grant 50,000$ TOTAL TRANSFERS IN - 269 50,000$ 272 FEDERAL GRANTS FUND 100 General Fund General Fund match for grant 115,305$ TOTAL TRANSFERS IN - 272 115,305$ 318 Redevelopment Obligation Retirement 661 05 ERAF - SA Transfer to close out 05 ERAF 1,848$ 662 06 ERAF - SA Transfer to close out 06 ERAF 1,861$ TOTAL TRANSFERS IN - 318 3,709$ 341 PUBLIC LIABILITY TRUST 100 General Fund General Fund transfer for public liability expenses 1,204,078$ 414 Sewer Service Revenue Sewer Fund transfer for public liability expenses 80,000$ TOTAL TRANSFERS IN - 341 1,284,078$ 347 CFD 14M-B-EUC Millenia 346 CFD 14M- A - EUC Millenia Reimbursement for operational costs 67,823$ TOTAL TRANSFERS IN - 347 67,823$ 408 DEVELOPMENT SERVICES FUND 100 General Fund Staff time and Accela reimbursement 374,529$ 313 CV Housing Authority Fund Reimbursement for allocated overhead costs 73,125$ 414 Sewer Service Revenue Staff time reimbursement 16,137$ TOTAL TRANSFERS IN - 408 463,791$ 409 CV Elite Athlete Center 100 General Fund Transfer cell site tower lease revenue 120,000$ TOTAL TRANSFERS IN - 409 120,000$ 430 SEWER DIF 430 Sewer DIF Interfund loan payment 200,000$ TOTAL TRANSFERS IN - 413 200,000$ SCHEDULE OF INTERFUND TRANSFERS IN 227 378 FUND/ACCOUNT DESCRIPTION FY 2019 Proposed SCHEDULE OF INTERFUND TRANSFERS IN 414 SEWER SERVICE REVENUE 428 Sewer Facility Replacement Staff time reimbursement 150,000$ TOTAL TRANSFERS IN - 414 150,000$ 442 CDBG SECTION 108 LOAN 272 Federal Grants Fund Debt service payment - Section 108 loan 764,000$ TOTAL TRANSFERS IN - 442 764,000$ 452 EQUIPMENT LEASE FUND 100 General Fund Debt service payment - Mobile data computers & QECB 312,000$ TOTAL TRANSFERS IN - 452 312,000$ 453 ENERGY LOAN REPAYMENTS 100 General Fund Debt service payment - California Energy Commission loan 559,600$ TOTAL TRANSFERS IN - 453 559,600$ 475 2014 REFUNDING COP 100 General Fund Debt Service Payment - 2002 COP Refunding - Police Facility 2,007,852$ 573 Police Facilities Remodel Debt Service Payment - 2002 COP Refunding - Police Facility 1,600,148$ TOTAL TRANSFERS IN - 475 3,608,000$ 476 2015 REFUNDING COP 100 General Fund Debt Service Payment 425,428$ 572 PFDIF - Civic Center Expansion Debt Service Payment 1,835,796$ 717 Resid. Construction/Conversion Debt Service Payment - 2015 Refunding COP 667,776$ TOTAL TRANSFERS IN - 476 2,929,000$ 477 2016 REF COP CIVIC CENTER/NATURE CNTR 100 General Fund Debt service payment 58,232$ 572 PFDIF - Civic Center Expansion Debt service payment 229,768$ TOTAL TRANSFERS IN - 477 288,000$ 478 2016 LRRB PFDIF/COP 100 General Fund Debt service payment 614,348$ 572 PFDIF - Civic Center Expansion Debt service payment 814,686$ 574 Corporation Yard Relocation Debt service payment 728,966$ TOTAL TRANSFERS IN - 478 2,158,000$ 479 2017 CREBs LRBs 100 General Fund Debt service payment 192,817$ TOTAL TRANSFERS IN - 478 192,817$ 591 TRANSPORTATION DIF 451 Long-term Advances DSF - City Interfund loan payment 1,035,000$ TOTAL TRANSFERS IN - 591 1,035,000$ 666 2016 TARBS 318 Redevelopment Obligation Retirement Fund Debt service payments 2,802,925$ TOTAL TRANSFERS IN - 666 2,802,925$ 715 PARK ACQUISITION & DEVELOPMENT 451 Long-term Advances DSF - City Interfund loan payment 50,000$ TOTAL TRANSFERS IN - 715 50,000$ 228 379 FUND/ACCOUNT DESCRIPTION FY 2019 Proposed SCHEDULE OF INTERFUND TRANSFERS IN GRAND TOTAL ALL FUNDS 48,933,629$ 229 380 FUND/ACCOUNT DESCRIPTION FY 2019 Proposed 100 GENERAL FUND 201 Measure P Sales Tax Transfer Measure P Sales Tax from General Fund 18,085,000$ 269 Other Grant Fund General Fund match for grant 50,000$ 272 Federal Grants Fund General Fund match for grant 115,305$ 341 Public Liability Trust General Fund transfer for public liability expenses 1,204,078$ 408 Development Services Staff time reimbursement 374,529$ 409 CV Elite Athlete Center Transfer cell site tower lease revenue 120,000$ 452 Equipment Lease Fund Debt service payment - Mobile data computers & QECB 312,000$ 453 Energy Loan Repayments Debt service payment - California Energy Commission loan 559,600$ 475 2014 Refunding COP Debt Service Payment - 2002 COP Refunding - Police Facility 2,007,852$ 476 2015 Refunding COP Debt Service Payment - 2015 Refunding COP 425,428$ 477 2016 Refunding COP Debt Service 58,232$ 478 2016 Refunding COP Debt Service 614,348$ 479 2017 CREBs LRBs Debt Service 192,817$ TOTAL TRANSFERS OUT - 100 24,119,189$ 221 GAS TAX FUND 100 General Fund Reimbursement for street related staff time, materials, and utilities 4,364,371$ TOTAL TRANSFERS OUT - 221 4,364,371$ 234 ADVANCED LIFE SUPPORT FUND 100 General Fund Staff time reimbursement 972,453$ TOTAL TRANSFERS OUT - 234 972,453$ 245 TRAFFIC SAFETY 100 General Fund Reimbursement for Police fleet maintenance costs 399,140$ TOTAL TRANSFERS OUT - 245 399,140$ 272 FEDERAL GRANTS FUND 272 Federal Grants Fund Funding for personnel costs 919,827$ 442 CDBG Section 108 Loan Project cost reimbursement from AD 762,200$ TOTAL TRANSFERS OUT - 272 1,682,027$ 282 ENVIRONMENTAL SERVICES 100 General Fund Reimbursement for allocated overhead costs 107,585$ TOTAL TRANSFERS OUT - 282 107,585$ 313 CV HOUSING AUTHORITY 100 General Fund Reimbursement for allocated overhead costs 181,572$ 408 Development Services Reimbursement for allocated overhead costs 73,125$ TOTAL TRANSFERS OUT - 313 254,697$ 318 Redevelopment Obligation Retirement Fund 666 2016 TARBs Debt service payment 2,802,925$ TOTAL TRANSFERS OUT - 318 2,802,925$ 346 CFD 14M-A-EUC Millenia 347 CFD 14M-B-EUC Millenia Project cost reimbursement from AD 67,823$ TOTAL TRANSFERS OUT - 333 67,823$ 406 CV MUNICPAL GOLF COURSE 100 General Fund City's share of golf course operational revenues 132,580$ TOTAL TRANSFERS OUT - 406 132,580$ SCHEDULE OF INTERFUND TRANSFERS OUT 230 381 FUND/ACCOUNT DESCRIPTION FY 2019 Proposed SCHEDULE OF INTERFUND TRANSFERS OUT 408 DEVELOPMENT SERVICES 100 General Fund Reimbursement for allocated overhead costs 1,923,648$ TOTAL TRANSFERS OUT - 408 1,923,648$ 414 SEWER SERVICE REVENUE 100 General Fund Reimbursement for Sewer related staff time and materials 3,202,097$ 341 Public Liability Trust Sewer Fund transfer for public liability expenses 80,000$ 408 Development Services Staff time reimbursement 16,137$ TOTAL TRANSFERS OUT - 414 3,298,234$ 428 SEWER FACILITY REPLACEMENT 414 Sewer Service Revenue Staff time reimbursement 150,000$ TOTAL TRANSFERS OUT - 428 150,000$ 430 SEWER DIF 413 Trunk Sewer Capital Reserve Interfund loan payment - Trunk Sewer Capl Res-FY00-01 Budget Reso 200,000$ TOTAL TRANSFERS OUT - 433 200,000$ 560 PFDIF - CIVIC CENTER EXPANSION 451 Long-term Advances DSF - City Interfund loan payment 1,493,108$ 476 2015 Refunding COP Debt Service Payment - 2015 Refunding COP 1,835,796$ 477 2016 Ref COP Civic Center/Nature Center Debt Service Payment 229,768$ 478 2016 LRRB PFDIF/COP Debt Service Payment 814,686$ TOTAL TRANSFERS OUT - 572 4,373,358$ 573 POLICE FACILITIES REMODEL 475 2014 Refunding COP Debt Service Payment - 2002 COP Refunding - Police Facility 1,600,148$ TOTAL TRANSFERS OUT - 573 1,600,148$ 574 CORP YARD RELOCATION 478 2016 LRRB PFDIF/COP Debt Service Payment 728,966$ TOTAL TRANSFERS OUT - 574 728,966$ 576 FIRE SUPPRESSION SYS EXPANSION 451 Long-term Advances DSF - City Interfund loan payment 1,035,000$ TOTAL TRANSFERS OUT - 576 1,035,000$ 661 05 ERAF - SA 318 Redevelopment Obligation Retirement Fund Transfer to close out 05 ERAF 1,848$ TOTAL TRANSFERS OUT - 661 1,848$ 662 06 ERAF - SA 318 Redevelopment Obligation Retirement Fund Transfer to close out 06 ERAF 1,861$ TOTAL TRANSFERS OUT - 662 1,861$ 716 WESTERN - PARK ACQUISITION & DEV 451 Long-term Advances DSF - City Interfund loan payment 49,498$ TOTAL TRANSFERS OUT - 716 49,498$ 717 RESID. CONSTRUCTION/CONVERSION 476 2015 Refunding COP Debt Service Payment - 2015 Refunding COP 668,278$ TOTAL TRANSFERS OUT - 717 668,278$ GRAND TOTAL ALL FUNDS 48,933,629$ 231 382 232 383 ʹͲͳͻ 233 384 234 385 CLASSIFICATION FY 2018 ADOPTED BUDGET FY 2018 MIDYEAR CHANGES FY 2019 PROPOSED CHANGES FY 2019 PROPOSED BUDGET ADMINISTRATION ASST CITY MANAGER/ADMIN 1.00 0.00 0.00 1.00 CITY MANAGER 1.00 0.00 0.00 1.00 DEPUTY CITY MANAGER 1.00 0.00 0.00 1.00 DEPUTY CITY MANAGER - FROZEN/UNFUNDED 1.00 0.00 0.00 1.00 EXECUTIVE SECRETARY 1.00 0.00 0.00 1.00 MARKETING & COMMUNICATIONS MGR 1.00 0.00 0.00 1.00 PUBLIC INFORMATION SPECIALIST 1.00 0.00 0.00 1.00 SPECIAL EVENTS COORDINATOR 1.00 0.00 0.00 1.00 SR GRAPHIC DESIGNER 1.00 0.00 0.00 1.00 SR WEBMASTER 1.00 0.00 0.00 1.00 ADMINISTRATION TOTAL 10.00 0.00 0.00 10.00 ANIMAL CARE FACILITY ANIMAL ADOPTION COUNSELOR 1.00 0.00 0.00 1.00 ANIMAL CARE FAC ADMINISTRATOR 1.00 0.00 0.00 1.00 ANIMAL CARE SPECIALIST 6.00 (1.00)0.00 5.00 ANIMAL CARE SUPERVISOR 1.00 0.00 0.00 1.00 ANIMAL CONTROL OFFICER 2.00 0.50 0.00 2.50 ANIMAL CTRL OFFICER SUPERVISOR 1.00 0.00 0.00 1.00 OFFICE SPECIALIST 0.50 0.00 0.00 0.50 REGISTERED VETERINARY TECH 3.50 0.00 0.00 3.50 SR ANIMAL CARE SPECIALIST 2.00 0.00 0.00 2.00 SR FISCAL OFFICE SPECIALIST 1.00 0.00 0.00 1.00 SR OFFICE SPECIALIST 1.00 0.00 0.00 1.00 VETERINARIAN (PERMITTED)1.75 0.00 0.00 1.75 ANIMAL CARE FACILITY TOTAL 21.75 (0.50)0.00 21.25 CITY ATTORNEY ASST CITY ATTORNEY 1.00 0.00 0.00 1.00 CITY ATTORNEY (ELECTED)1.00 0.00 0.00 1.00 DEPUTY CITY ATTORNEY II 3.00 0.00 0.00 3.00 DEPUTY CITY ATTORNEY III 3.00 0.00 0.00 3.00 LAW OFFICE MANAGER 1.00 0.00 0.00 1.00 LEGAL ASSISTANT 2.00 0.00 0.00 2.00 SR ASST CITY ATTORNEY 1.00 0.00 0.00 1.00 SR LEGAL ASSISTANT 1.00 0.00 0.00 1.00 SR RISK MANAGEMENT SPECIALIST 1.00 0.00 0.00 1.00 CITY ATTORNEY TOTAL 14.00 0.00 0.00 14.00 CITY CLERK ASSISTANT CITY CLERK 1.00 0.00 0.00 1.00 CITY CLERK 1.00 0.00 0.00 1.00 235 386 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ 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^ZK&&/ ^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZW>EE/E'd ,//E ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ s >KWD Ed^ Zs/ ^Ͳ'&dKd> ϮϬ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϮϬ͘ϬϬ KEKD/ s >KWD Ed D/E/^dZd/s ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ,/ &^h^d/E/>/dzK&&/ Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ KE^ Zsd/KE^W />/^d// ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ h>dhZ>Zd^WZK'ZDD'Z ϭ͘ϬϬ Ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ /ZK& KE s >KWD Ed ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ KEKD/ s >KWD Ed^W / ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Es/ZKED Ed>^ Zs/ ^D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Z >WZKW ZdzDE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZKE^ Zsd/KE^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z KEKD/ s^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ 236 387 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d ^Z&/^>K&&/ ^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ KEKD/ s >KWD EddKd> ϭϱ͘ϬϬ Ϭ͘ϬϬ ;ϭ͘ϬϬͿ ϭϰ͘ϬϬ E'/E Z/E'EW/d>WZK: d D/E/^dZd/s ^ Zs/ ^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^^K E'/E Z ϭϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϭ͘ϬϬ ^^K>E^hZs zKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /ZK& E'/E Z/E' ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ E'/E Z/E'd ,// Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ Es/ZKED Ed>,>d,^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ DE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>/s/> E'/E Z ϰ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ ϯ͘ϬϬ WZ/E/W>dZ&&/ E'/E Z Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/tKZ<^/E^W// ϲ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϲ͘ϬϬ ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZD/E/^dZd/s ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z/s/> E'/E Z ϲ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ ϱ͘ϬϬ ^Z E'/E Z/E'd ,E//E Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^ZWh>/tKZ<^/E^W Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^dKZDtd ZWZK'ZDDE' Z Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^hZs zd ,E//E// ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ dZ&&/ s/ ^d , ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ dZ&&/ s/ ^d ,^hWs ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ E'/E Z/E'EW/d>WZK: ddKd> ϰϲ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰϲ͘ϬϬ &/EE KhEdEd ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ KhEd/E'^^/^dEd ϲ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϲ͘ϬϬ KhEd/E'd ,E//E ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ KhEd^Wz> ^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^^K/d KhEdEd Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^^d/ZK&&/EE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ h' dΘE>z^/^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ h^/E ^^>/ E^ Z W ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ K>> d/KE^^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /Z dKZK&&/EE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/EE ΘWhZ,^/E'D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/^>ΘDE' D EdE>z^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ &/^>ΘDE' D EdE>z^dͲ&ZK EͬhE&hE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/^> dD'DdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/^>K&&/^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZKhZ D Ed^ Zs/ ^E>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZKhZ D Ed^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZKhEdEd Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^ZDE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ 237 388 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d &/EE dKd>Ϯϴ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯϴ͘ϬϬ &/Z Whdz&/Z ,/ & ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/>/dzΘ^hWW>z^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z dd>/KE,/ &;ϭϭϮ,ZͿ ϲ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϲ͘ϬϬ &/Z dd>/KE,/ &;ϴϬ,ZͿ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z Wd/E;ϭϭϮ,ZͿ ϯϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯϯ͘ϬϬ &/Z Wd/E;ϴϬ,ZͿ Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ &/Z ,/ & ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z /s/^/KE,/ & ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z E'/E Z;ϭϭϮ,ZͿ ϯϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯϯ͘ϬϬ &/Z E'/E Z;ϴϬ,ZͿ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z /E^Wͬ/Es ^d/ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z /E^Wͬ/Es ^d// ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ &/Z WZ s E'ͬ/Es ^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z WZ s Ed/KE/ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z &/',d Z;ϭϭϮ,ZͿ ϵ͘ϬϬ ϭϮ͘ϬϬ Ϭ͘ϬϬ Ϯϭ͘ϬϬ &/Z &/',d ZͬWZD /;ϭϭϮ,ZͿ ϯϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯϯ͘ϬϬ WZ/E//W>DE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/^& dzE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZD/E/^dZd/s ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z&/Z /E^Wͬ/Es ^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZK&&/ ^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ dZ/E/E'WZK'ZD^^W ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z dKd>ϭϯϲ͘ϬϬ ϭϮ͘ϬϬ Ϭ͘ϬϬ ϭϰϴ͘ϬϬ ,hDEZ ^KhZ ^ E &/d^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /ZK&,hDEZ ^KhZ ^ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ,ZE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ,Zd ,E//E ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ ,hDEZ ^KhZ ^KW^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ W Z&KZDE ΘKZ' sD'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z&/^>K&&/ ^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^Z,ZE>z^d ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ ^ZZ/^<DE' D Ed^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ,hDEZ ^KhZ ^dKd>ϭϲ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϲ͘ϬϬ /E&KZDd/KEd ,EK>K'z^Zs^ /ZK&/E&Kd ,^Zs^ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ '/^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ '/^^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ /E&Kd ,^hWWKZd^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /E&Kd ,EK>K'zd ,E//E ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ 238 389 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d /E&Kd ,EK>K'zd ,E//EͲ&ZK EͬhE&hE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /E&KZDd/KEd ,EK>K'zDE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ KW^Θd > KDD'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZWW>/d/KE^hWWKZd^W ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z/E&Kd ,^hWWKZd^W ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ ^ZWZK'ZDD ZE>z^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ d > KDDhE/d/KE^^W />/^dͲ&ZK EͬhE&hE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /E&KZDd/KEd ,EK>K'z^Zs^dKd> ϭϳ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϳ͘ϬϬ >/ZZz /dz>/ZZ/E Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ h>dhZ>Zd^WZK'ZDD'Z Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϬϬ /Z dKZK&KDDhE/dz^ Zs/ ^Ϭ͘ϬϬ Ϭ͘ϱϬ Ϭ͘ϬϬ Ϭ͘ϱϬ /ZK&>/ZZz ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ >/ZZ/E/ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ >/ZZ/E// ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ >/ZZ/E/// Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ >/ZZz^^K/d ϳ͘ϱϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϳ͘ϱϬ >/ZZz/'/d>^ Zs/ ^D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ DE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>>/ZZ/E ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z>/ZZ/E ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ >/ZZzdKd>ϮϮ͘ϱϬ Ϭ͘ϱϬ ϭ͘ϬϬ Ϯϰ͘ϬϬ WK>/ hdKDd &/E' ZWZ/Edd , Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ,/ &K&WK>/ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /s/>/E<'ZKhE/Es ^d/'dZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ KDDhE/dz^ Zs/ K&&/ Z ϴ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϴ͘ϬϬ Z/D >KZdKZzDE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ d Ed/KE&/>/dzDE' ZͲ&ZK EͬhE&hE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/>/dzΘ^hWW>z^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/^>K&&/ ^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &KZ E^/^^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ >d EdWZ/Ed yD/E Z Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ WZ</E' E&KZ D EdK&&/ Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ W K&&/ Z ϭϰϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ ϭϰϲ͘ϬϬ W K&&/ ZͲ&ZK EͬhE&hE ϭϮ͘ϬϬ Ϭ͘ϬϬ ;ϱ͘ϬϬͿ ϳ͘ϬϬ WK>/ D/E^s^D/E/^dZdKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ ' Ed ϰϴ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰϴ͘ϬϬ WK>/ Wd/E ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ WK>/ KDD^z^d D^DE' ZͲ&ZK EͬhE&hE ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ /^Wd, Z Ϯϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯϭ͘ϬϬ WK>/ /^Wd, Z^hW Zs/^KZ ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ WK>/ >/ hd EEd ϭϬ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϬ͘ϬϬ 239 390 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d WK>/ Z KZ^^W />/^d ϭϬ͘ϱϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϬ͘ϱϬ WK>/ ^ Z' Ed Ϯϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯϱ͘ϬϬ WK>/ ^ Zs/ ^K&&/ Z ϭϬ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϬ͘ϬϬ WK>/ ^hWWKZd^ Zs/ ^D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ ^s^K&&/ Z^hW Zs/^KZ Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ WK>/ d ,EK>K'zDE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ d ,EK>K'z^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>DE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/^& dzE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ Z dZz ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ ^ZD/E/^dZd/s ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z&/^>K&&/ ^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z>d EdWZ/Ed yD/E Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZK&&/ ^W />/^d ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ ^ZWK>/ Z KZ^^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZWZKWΘ s/ E ^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^ZWh>/^& dzE>z^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^hWsWh>/^& dzE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ dZ/E/E'WZK'ZD^^W ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ dKd>ϯϯϮ͘ϱϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯϯϮ͘ϱϬ Wh>/tKZ<^ D/E/^dZd/s ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^^d/ZK&Wh>/tKZ<^ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ h/>/E'^ Zs/ ^^hW Zs/^KZ Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ KE^dZhd/KEΘZ W/Z^hWs^Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ h^dK/>^hW Zs/^KZ Ϯ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ ϭ͘ϬϬ h^dK/E ϭϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭϭ͘ϬϬ /ZK&Wh>/tKZ<^ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ > dZ//E Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ Yh/WD EdKW ZdKZ Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ &/>/d/ ^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/^>K&&/ ^W />/^d Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϬϬ 'Z E Z// ϮϮ͘ϬϬ Ϭ͘ϬϬ ;ϮϮ͘ϬϬͿ Ϭ͘ϬϬ 'Z&&/d/d D EdKKZ/EdKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ,sd ,E//E Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ > h^dK/E ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ >K<^D/d, Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ D/Ed EE tKZ< Z/ ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ D/Ed EE tKZ< Z// ϵ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭϬ͘ϬϬ DE' D EdE>z^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ KW E^W /E^W dKZ ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ KW E^W DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ<ZE' Z^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ WZ<^DE' Z Ϭ͘ϬϬ ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ 240 391 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d WZ<^KW Zd/KE^DE' Z ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ WZ<^^hW Zs/^KZ ϰ͘ϬϬ Ϭ͘ϬϬ ;ϰ͘ϬϬͿ Ϭ͘ϬϬ W>hD Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>DE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/tKZ<^DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/tKZ<^^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/tKZ<^^hW Z/Ed E Ed Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϬϬ Wh>/tKZ<^^hW Zs/^KZ Ϯ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ WhDWD/Ed EE d ,E//E ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ WhDWD/Ed EE ^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^/'E/E'Θ^dZ/W/E'^hW Zs/^KZ ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ ^Z > dZKE/^d , ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z&/^>K&&/ ^W />/^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^Z'Z E Z ϵ͘ϬϬ Ϭ͘ϬϬ ;ϵ͘ϬϬͿ Ϭ͘ϬϬ ^Z,sd ,E//E ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z>E^W /E^W dKZ ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ ^ZD/Ed EE tKZ< Z ϴ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϴ͘ϬϬ ^ZKW E^W /E^W dKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZWZ<ZE' Z ϭ͘ϬϬ Ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ dZ dZ/DD Z^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ t^d td Zͬ^dZDtdZKW^D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Wh>/tKZ<^dKd>ϭϭϲ͘ϬϬ ;ϭ͘ϬϬͿ ;ϯϲ͘ϬϬͿ ϳϵ͘ϬϬ Z Z d/KE /Z dKZK&KDDhE/dz^ Zs/ ^Ϭ͘ϬϬ Ϭ͘ϱϬ Ϭ͘ϬϬ Ϭ͘ϱϬ D/E/^dZd/s ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ D/E/^dZd/s d ,E//E Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Yhd/^hWs// Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ Yhd/^hWs/// ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ /Z dKZK&Z Z d/KE ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ 'Z E Z// Ϭ͘ϬϬ Ϭ͘ϬϬ ϮϮ͘ϬϬ ϮϮ͘ϬϬ DE' D EdE>z^d ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ WZ<ZE' Z^hW Zs/^KZ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϬϬ WZ<^ΘZ Z d/KED/E/^dZdKZ Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ<^DE' Z Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϬϬ WZ<^^hW Zs/^KZ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ ϰ͘ϬϬ WZ/E/W>Z Z d/KEDE' Z Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ Z Z d/KE^hW Zs/^KZ/// ϴ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϴ͘ϬϬ ^Z'Z E Z Ϭ͘ϬϬ Ϭ͘ϬϬ ϵ͘ϬϬ ϵ͘ϬϬ ^ZWZ<ZE' Z Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϭ͘ϬϬ ^ZZ Z d/KED'Z ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ Ϭ͘ϬϬ Z Z d/KEdKd>ϭϳ͘ϬϬ ;Ϭ͘ϱϬͿ ϯϴ͘ϬϬ ϱϰ͘ϱϬ ' E Z>&hE^hdKd> ϴϯϭ͘ϳϱ ϭϬ͘ϱϬ ϰ͘ϬϬ ϴϰϲ͘Ϯϱ 241 392 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d sE >/& ^hWWKZdWZK'ZD D^EhZ^ KKZ/EdKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ sE >/& ^hWWKZdWZK'ZDdKd> ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ s,Kh^/E'hd,KZ/dz&hE ,Kh^/E'DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZDE' D EdE>z^d Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^ZWZK: dKKZ/EdKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ s,Kh^/E'hd,KZ/dz&hEdKd> ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ s >KWD Ed^ Zs/ ^&hE ^^K E'/E Z ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ ^^KW>E, < E'/E Z ϯ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ϰ͘ϬϬ ^^K/d W>EE Z ϱ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ h/>/E'/E^W d/KED'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ h/>/E'/E^W dKZ// ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ h/>/E'/E^W dKZ/// Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ h/>/E'K&&ͬK E&D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ s >KWD Ed^ Zs/ ^d ,/ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ s >KWD Ed^ Zs/ ^d ,// ϯ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ s >KWD Ed^ Zs/ ^d ,/// Ϯ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ s >KWD Ed^ Zs/ ^KhEd ZD'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ E'/E Z/E'd ,// ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ >E^W Z,/d d ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ DE' D EdE>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ W>E, <^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ W>EE/E'DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>/s/> E'/E Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>>E^W Z,/d d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WZ/E/W>W>EE Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Zh/>/E'/E^W dKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z/s/> E'/E Z Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ ^Z E'/E Z/E'd ,E//E ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z>E^W /E^W dKZ Ϭ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZW>E, <d ,E//E ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^ZW>EE Z ϰ͘ϬϬ ϭ͘ϬϬ Ϭ͘ϬϬ ϱ͘ϬϬ ^ZWZK: dKKZ/EdKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ dZE^WKZdd/KE E'/E Ztͬ Zd ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ s >KWD Ed^ Zs/ ^&hEdKd> ϱϬ͘ϬϬ ϰ͘ϬϬ ϭ͘ϬϬ ϱϱ͘ϬϬ Es/ZKED Ed>^ Zs/ ^ Z z>/E'^W />/^d/ ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ Z z>/E'^W />/^d// ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ 242 393 >^^/&/d/KE &zϮϬϭϴ KWd h' d &zϮϬϭϴ D/z Z ,E' ^ &zϮϬϭϵ WZKWK^ ,E' ^ &zϮϬϭϵ WZKWK^ h' d ^ZZ z>/E'^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ Es/ZKED Ed>^ Zs/ ^dKd> ϳ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϳ͘ϬϬ & Z>'ZEd^&hE D Z' Ez^s^KKZ/EdKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ '/^^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ & Z>'ZEd^&hEdKd>Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ &> dDE' D Ed Yh/WD EdD ,E/ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ &/Z WWZdh^D , Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ &/^>K&&/ ^W />/^d ϭ͘ϬϬ Ϭ͘ϬϬ ;ϭ͘ϬϬͿ Ϭ͘ϬϬ &> d/Es EdKZzKEdZK>^W ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &> dDE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ ^Z Yh/WD EdD ,E/ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &> dDE' D EddKd>ϵ͘ϬϬ Ϭ͘ϬϬ ;ϭ͘ϬϬͿ ϴ͘ϬϬ WK>/ Wd'ZEd^&hE &E>z^d ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ & Whdz/Z dKZ^> Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ & Whdz y hd/s /Z dKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Z dKZK&^> ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &&/EE/>DE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &' K^Wd/>/Ed >E>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &'ZW,/ ^/'E Zͬt D^d Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/E&K^ hZ/dzWZK'ZDD'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/Ed >>/' E E>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &/sͲ> y /Z dKZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &> /dDE' Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &E dtKZ<D/E/^dZdKZ// ϰ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰ͘ϬϬ &WZK'^^d^hW Zs/^KZ ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &WZK'ZD^^/^dEd ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &WhWZsdWZd y ZWZ'D'Z ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &Z&>E dtKZ< E'/E Z Ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ Ϯ͘ϬϬ &^Z&/EE/>E>z^d ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &^Z/Ed >>/' E E>z^d ϵ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϵ͘ϬϬ &^ZWZK'ZD^^/^dEd ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &^Z^ Z dZz ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ &^hWs/Ed >>/' E E>z^d ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ W K&&/ Z ϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϯ͘ϬϬ WK>/ KDDZ >d/KE^^W ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ ^ Z' Ed ϭ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϭ͘ϬϬ WK>/ Wd'ZEd^&hEdKd> ϰϯ͘ϬϬ Ϭ͘ϬϬ Ϭ͘ϬϬ ϰϯ͘ϬϬ ^ t Z&hE^ 243 394 CLASSIFICATION FY 2018 ADOPTED BUDGET FY 2018 MIDYEAR CHANGES FY 2019 PROPOSED CHANGES FY 2019 PROPOSED BUDGET ASSOC ENGINEER 2.00 0.00 0.00 2.00 ENGINEERING TECH II 2.00 0.00 0.00 2.00 EQUIPMENT OPERATOR 3.00 0.00 0.00 3.00 MAINTENANCE WORKER II 18.00 0.00 0.00 18.00 PUBLIC WORKS SPECIALIST 1.00 0.00 0.00 1.00 PUBLIC WORKS SUPERVISOR 4.00 0.00 0.00 4.00 SR CIVIL ENGINEER 1.00 0.00 0.00 1.00 SR FISCAL OFFICE SPECIALIST 1.00 0.00 0.00 1.00 SR MAINTENANCE WORKER 14.00 0.00 0.00 14.00 SEWER FUNDS TOTAL 46.00 0.00 0.00 46.00 NON-GENERAL FUND SUBTOTAL 162.00 4.00 0.00 166.00 TOTAL AUTHORIZED POSITIONS 993.75 14.50 2.00 1010.25 244 395 ʹͲͳͻ &ŝƐĐĂůWŽůŝĐŝĞƐ /ŶǀĞƐƚŵĞŶƚWŽůŝĐŝĞƐ ĞďƚĚŵŝŶŝƐƚƌĂƚŝŽŶ 'EEƉƉƌŽƉƌŝĂƚŝŽŶƐ>ŝŵŝƚ >ĞŐĂůĞďƚDĂƌŐŝŶ ĐĐŽƵŶƚŝŶŐ^LJƐƚĞŵƐĂŶĚƵĚŐĞƚĂƌLJŽŶƚƌŽů >ŝƐƚŽĨĐƌŽŶLJŵƐ 'ůŽƐƐĂƌLJ 245 396 246 397 ʹͲͳͻ 247 398 248 399 ʹͲͳͻ dŚŝƐ ƐĞĐƚŝŽŶ ŽĨ ƚŚĞ ďƵĚŐĞƚ ĚŽĐƵŵĞŶƚ ƌĞŝƚĞƌĂƚĞƐ ƚŚĞ ĨŝƐĐĂů ƉŽůŝĐŝĞƐ ƚŚĂƚ ǁĞƌĞ ƌĞǀŝĞǁĞĚ͕ ĂĐŬŶŽǁůĞĚŐĞĚ͕ Žƌ ĂƉƉƌŽǀĞĚͬĂĚŽƉƚĞĚďLJƚŚĞŝƚLJŽƵŶĐŝů͘dŚĞƐĞƉŽůŝĐŝĞƐ ĨŽƌŵƚŚĞŽǀĞƌĂůůĨƌĂŵĞǁŽƌŬǁŝƚŚŝŶǁŚŝĐŚƚŚĞŽƉĞƌĂƚŝŶŐ ďƵĚŐĞƚ ǁĂƐ ĨŽƌŵƵůĂƚĞĚ͘ dŚĞ ĨŝƐĐĂů ƉŽůŝĐŝĞƐ͕ ŵŽƐƚ ŽĨ ǁŚŝĐŚĂƌĞĂůƌĞĂĚLJĐŽĚŝĨŝĞĚŝŶŽŶĞĨŽƌŵŽƌĂŶŽƚŚĞƌ͕ĂƌĞ ŶŽƚ ĐŽŶƐŝĚĞƌĞĚ ŶĞǁ Žƌ ĐŽŶƚƌŽǀĞƌƐŝĂů͕ ďƵƚ ĂƌĞ ƐƵŵŵĂƌŝnjĞĚŚĞƌĞƚŽĂƐƐŝƐƚLJŽƵƚŽďĞƚƚĞƌƵŶĚĞƌƐƚĂŶĚƚŚĞ ďĂƐŝƐ ĨŽƌ ƚŚĞ ƌĞƐŽƵƌĐĞ ĂůůŽĐĂƚŝŽŶ ĚĞĐŝƐŝŽŶƐ ƚŚĂƚ ǁĞƌĞ ŵĂĚĞ͘ 'ĞŶĞƌĂů ϭ͘dŚĞŝƚLJ͛ƐĨŝŶĂŶĐŝĂůĂƐƐĞƚƐǁŝůůďĞŵĂŶĂŐĞĚŝŶĂ ƐŽƵŶĚ ĂŶĚ ƉƌƵĚĞŶƚ ŵĂŶŶĞƌ ŝŶ ŽƌĚĞƌ ƚŽĞŶƐƵƌĞ ƚŚĞĐŽŶƚŝŶƵĞĚǀŝĂďŝůŝƚLJŽĨƚŚĞŽƌŐĂŶŝnjĂƚŝŽŶ͘ Ϯ͘ ĐŽŵƉƌĞŚĞŶƐŝǀĞ ŽƉĞƌĂƚŝŶŐ ĂŶĚ ĐĂƉŝƚĂů ďƵĚŐĞƚ ĨŽƌĂůůŝƚLJĨƵŶĚƐǁŝůůďĞĚĞǀĞůŽƉĞĚĂŶŶƵĂůůLJĂŶĚ ƉƌĞƐĞŶƚĞĚƚŽƚŚĞŝƚLJŽƵŶĐŝůĨŽƌĂƉƉƌŽǀĂů͘dŚĞ ƉƵƌƉŽƐĞŽĨƚŚĞĂŶŶƵĂůďƵĚŐĞƚǁŝƚŚďĞƚŽ͗ Ă͘/ĚĞŶƚŝĨLJĐŽŵŵƵŶŝƚLJŶĞĞĚƐĨŽƌĞƐƐĞŶƚŝĂů ƐĞƌǀŝĐĞƐ͘ ď͘/ĚĞŶƚŝĨLJƚŚĞƉƌŽŐƌĂŵƐĂŶĚƐƉĞĐŝĨŝĐĂĐƚŝǀŝƚŝĞƐ ƌĞƋƵŝƌĞĚƚŽƉƌŽǀŝĚĞƚŚĞƐĞĞƐƐĞŶƚŝĂůƐĞƌǀŝĐĞƐ͘ Đ͘ ƐƚĂďůŝƐŚ ƉƌŽŐƌĂŵ ƉŽůŝĐŝĞƐ ĂŶĚ ŐŽĂůƐ ƚŚĂƚ ĚĞĨŝŶĞ ƚŚĞ ŶĂƚƵƌĞ ĂŶĚ ůĞǀĞů ŽĨ ƉƌŽŐƌĂŵ ƐĞƌǀŝĐĞƐƌĞƋƵŝƌĞĚ͘ Ě͘/ĚĞŶƚŝĨLJ ĂůƚĞƌŶĂƚŝǀĞƐ ĨŽƌ ŝŵƉƌŽǀŝŶŐ ƚŚĞ ĚĞůŝǀĞƌLJŽĨƉƌŽŐƌĂŵƐĞƌǀŝĐĞƐ͘ Ğ͘/ĚĞŶƚŝĨLJ ƚŚĞ ƌĞƐŽƵƌĐĞƐ ƌĞƋƵŝƌĞĚ ƚŽ ĨƵŶĚ ŝĚĞŶƚŝĨŝĞĚ ƉƌŽŐƌĂŵƐ ĂŶĚ ĂĐƚŝǀŝƚŝĞƐ͕ ĂŶĚ ĞŶĂďůĞ ĂĐĐŽŵƉůŝƐŚŵĞŶƚ ŽĨ ƉƌŽŐƌĂŵ ŽďũĞĐƚŝǀĞƐ͘ Ĩ͘^ĞƚƐƚĂŶĚĂƌĚƐƚŽĨĂĐŝůŝƚĂƚĞƚŚĞŵĞĂƐƵƌĞŵĞŶƚ ĂŶĚĞǀĂůƵĂƚŝŽŶŽĨƉƌŽŐƌĂŵƉĞƌĨŽƌŵĂŶĐĞ͘ ϯ͘dŚĞŝƚLJ͛ƐĂŶŶƵĂůŽƉĞƌĂƚŝŶŐďƵĚŐĞƚǁŝůůďĞ ďĂůĂŶĐĞĚǁŚĞƌĞďLJƉůĂŶŶĞĚĞdžƉĞŶĚŝƚƵƌĞƐĚŽŶŽƚ ĞdžĐĞĞĚĂŶƚŝĐŝƉĂƚĞĚƌĞǀĞŶƵĞƐ͘ ϰ͘ZĞĐƵƌƌŝŶŐ ƌĞǀĞŶƵĞƐ ǁŝůů ĨƵŶĚ ƌĞĐƵƌƌŝŶŐ ĞdžƉĞŶĚŝƚƵƌĞƐ͘ KŶĞͲƚŝŵĞ ƌĞǀĞŶƵĞƐ ǁŝůů ďĞ ƵƐĞĚ ĨŽƌĐĂƉŝƚĂů͕ƌĞƐĞƌǀĞĂƵŐŵĞŶƚĂƚŝŽŶ͕ŽƌŽƚŚĞƌŶŽŶͲ ƌĞĐƵƌƌŝŶŐĞdžƉĞŶĚŝƚƵƌĞƐ͘ ϱ͘ĐĐŽƵŶƚŝŶŐƐLJƐƚĞŵƐǁŝůůďĞŵĂŝŶƚĂŝŶĞĚŝŶ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚ'ĞŶĞƌĂůůLJĐĐĞƉƚĞĚĐĐŽƵŶƚŝŶŐ WƌŝŶĐŝƉůĞƐ͘ ϲ͘/ŶǀĞƐƚŵĞŶƚ ƉŽůŝĐLJ ĂŶĚ ƉƌĂĐƚŝĐĞ ǁŝůů ďĞ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ^ƚĂƚĞ ƐƚĂƚƵĞƐ ƚŚĂƚ ĞŵƉŚĂƐŝnjĞ ƐĂĨĞƚLJĂŶĚůŝƋƵŝĚŝƚLJŽǀĞƌLJŝĞůĚ͕ŝŶĐůƵĚŝŶŐƋƵĂƌƚĞƌůLJ ƐƚĂƚƵƐƌĞƉŽƌƚƐƚŽƚŚĞŝƚLJŽƵŶĐŝů͘;ŽƵŶĐŝůWŽůŝĐLJͿ ϳ͘ŝƚLJ ŽƉĞƌĂƚŝŽŶƐ ǁŝůů ďĞ ŵĂŶĂŐĞĚ ĂŶĚ ďƵĚŐĞƚƐ ƉƌĞƉĂƌĞĚ ǁŝƚŚ ƚŚĞ ŐŽĂů ŽĨ ŵĂŝŶƚĂŝŶŝŶŐ ĂŶ ĂǀĂŝůĂďůĞĨƵŶĚďĂůĂŶĐĞŝŶƚŚĞ'ĞŶĞƌĂů&ƵŶĚŽĨŶŽ ůĞƐƐ ƚŚĂŶ ĨŝĨƚĞĞŶ ƉĞƌĐĞŶƚ ŽĨ ƚŚĞ 'ĞŶĞƌĂů &ƵŶĚ ŽƉĞƌĂƚŝŶŐďƵĚŐĞƚ͘;ŽƵŶĐŝůWŽůŝĐLJͿ ϴ͘'ĞŶĞƌĂů &ƵŶĚ ĨŝƐĐĂů ƐƚĂƚƵƐ ƌĞƉŽƌƚƐ ƌĞĨůĞĐƚŝŶŐ ĐŽŵƉĂƌŝƐŽŶƐ ŽĨ ĂĐƚƵĂů ĂŶĚ ƉƌŽũĞĐƚĞĚ ƉĞƌĨŽƌŵĂŶĐĞ ǁŝƚŚ ďƵĚŐĞƚ ĂůůŽĐĂƚŝŽŶƐ ĨŽƌ ďŽƚŚ ƌĞǀĞŶƵĞĂŶĚĞdžƉĞŶĚŝƚƵƌĞƐǁŝůůďĞƉƌĞƐĞŶƚĞĚƚŽ ƚŚĞŝƚLJŽƵŶĐŝůŽŶĂƋƵĂƌƚĞƌůLJďĂƐŝƐ͘;ŝƚLJ ŚĂƌƚĞƌͿ ZĞǀĞŶƵĞ ϭ͘dŚĞŝƚLJǁŝůůĞŶĚĞĂǀŽƌƚŽŵĂŝŶƚĂŝŶĂĚŝǀĞƌƐŝĨŝĞĚ ĂŶĚƐƚĂďůĞƌĞǀĞŶƵĞďĂƐĞŝŶŽƌĚĞƌƚŽŵŝŶŝŵŝnjĞƚŚĞ ŝŵƉĂĐƚ ƚŽ ƉƌŽŐƌĂŵƐ ĨƌŽŵ ƐŚŽƌƚͲƚĞƌŵ ĞĐŽŶŽŵŝĐ ĨůƵĐƚƵĂƚŝŽŶƐ͘ Ϯ͘ZĞǀĞŶƵĞƉƌŽũĞĐƚŝŽŶƐǁŝůůďĞŵĂŝŶƚĂŝŶĞĚĨŽƌƚŚĞ ĐƵƌƌĞŶƚ LJĞĂƌ ĂŶĚ ĨŽƵƌ ĨƵƚƵƌĞ ĨŝƐĐĂů LJĞĂƌƐ͕ ĂŶĚ ĞƐƚŝŵĂƚĞƐ ǁŝůů ďĞ ďĂƐĞĚ ŽŶ Ă ĐŽŶƐĞƌǀĂƚŝǀĞ͕ ĂŶĂůLJƚŝĐĂů͕ĂŶĚŽďũĞĐƚŝǀĞƉƌŽĐĞƐƐ͘ ϯ͘/ŶŽƌĚĞƌƚŽŵĂŝŶƚĂŝŶĨůĞdžŝďŝůŝƚLJ͕ĞdžĐĞƉƚĂƐƌĞƋƵŝƌĞĚ ďLJ ůĂǁ Žƌ ĨƵŶĚŝŶŐ ƐŽƵƌĐĞ͕ ƚŚĞ ŝƚLJ ǁŝůů ĂǀŽŝĚ ĞĂƌŵĂƌŬŝŶŐĂŶLJƌĞƐƚƌŝĐƚĞĚƌĞǀĞŶƵĞƐĨŽƌƐƉĞĐŝĨŝĐ ƉƵƌƉŽƐĞŽƌƉƌŽŐƌĂŵ͘ ϰ͘dŚĞŝƚLJŚĂƐĞƐƚĂďůŝƐŚĞĚƵƐĞƌĨĞĞƐƚŽďĞƐƚĞŶƐƵƌĞ ƚŚĂƚƚŚŽƐĞǁŚŽƵƐĞĂƉƌŽƉƌŝĞƚĂƌLJƐĞƌǀŝĐĞƉĂLJĨŽƌ ƚŚĂƚƐĞƌǀŝĐĞŝŶƉƌŽƉŽƌƚŝŽŶƚŽƚŚĞďĞŶĞĨŝƚƐ ƌĞĐĞŝǀĞĚ͘tŝƚŚĨĞǁĞdžĐĞƉƚŝŽŶƐ͕ƐƵĐŚĂƐƚŚŽƐĞ ƐĞƌǀŝĐĞƐƉƌŽǀŝĚĞĚĨŽƌůŽǁͲŝŶĐŽŵĞƌĞƐŝĚĞŶƚƐ͕ĨĞĞƐ ŚĂǀĞďĞĞŶƐĞƚƚŽĞŶĂďůĞƚŚĞŝƚLJƚŽƌĞĐŽǀĞƌƚŚĞ ĨƵůů ĐŽƐƚ ŽĨ ƉƌŽǀŝĚŝŶŐ ƚŚŽƐĞ ƐĞƌǀŝĐĞƐ͘;ŝƚLJǁŝĚĞ 249 400 ʹͲͳͻ ŽƐƚZĞĐŽǀĞƌLJWŽůŝĐLJ͕ŽƵŶĐŝůWŽůŝĐLJEƵŵďĞƌϭϱϵͲ ϬϯͿ ϱ͘hƐĞƌ ĨĞĞƐ ǁŝůů ďĞ ƌĞǀŝĞǁĞĚ ĂŶĚ ƵƉĚĂƚĞĚŽŶ ĂŶ ŽŶŐŽŝŶŐ ďĂƐŝƐ ƚŽ ĞŶƐƵƌĞ ƚŚĂƚ ƉƌŽŐƌĂŵ ĐŽƐƚƐ ĐŽŶƚŝŶƵĞƚŽďĞƌĞĐŽǀĞƌĞĚĂŶĚƚŚĂƚƚŚĞĨĞĞƐ ƌĞĨůĞĐƚ ĐŚĂŶŐĞƐ ŝŶ ůĞǀĞůƐ ŽĨ ƐĞƌǀŝĐĞ ĚĞůŝǀĞƌLJ͘ ;DĂƐƚĞƌ&ĞĞ^ĐŚĞĚƵůĞͿ ϲ͘dŚĞŝƚLJǁŝůůƌĞĐŽǀĞƌƚŚĞĐŽƐƚŽĨŶĞǁĨĂĐŝůŝƚŝĞƐĂŶĚ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞŶĞĐĞƐƐŝƚĂƚĞĚďLJŶĞǁĚĞǀĞůŽƉŵĞŶƚ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚ^ƚĂƚĞůĂǁĂŶĚƚŚĞŝƚLJ͛Ɛ'ƌŽǁƚŚ DĂŶĂŐĞŵĞŶƚ WƌŽŐƌĂŵ͘ ĞǀĞůŽƉŵĞŶƚ /ŵƉĂĐƚ &ĞĞƐ ǁŝůů ďĞ ĐůŽƐĞůLJŵŽŶŝƚŽƌĞĚ ĂŶĚ ƵƉĚĂƚĞĚ ƚŽ ĞŶƐƵƌĞ ƚŚĂƚ ƚŚĞLJ ĂƌĞ ŵĂŝŶƚĂŝŶĞĚ Ăƚ Ă ůĞǀĞů ĂĚĞƋƵĂƚĞƚŽƌĞĐŽǀĞƌĐŽƐƚƐ͘;'DKKƌĚŝŶĂŶĐĞͿ ϳ͘tŚĞŶ ĐŽŶƐŝĚĞƌŝŶŐ ŶĞǁ ĚĞǀĞůŽƉŵĞŶƚ ĂůƚĞƌŶĂƚŝǀĞƐ͕ƚŚĞŝƚLJǁŝůůĂƚƚĞŵƉƚƚŽĚĞƚĞƌŵŝŶĞ ƚŚĞ ĨŝƐĐĂů ŝŵƉĂĐƚ ŽĨ ƉƌŽƉŽƐĞĚ ƉƌŽũĞĐƚƐ͕ ĂŶŶĞdžĂƚŝŽŶƐ͕ ĞƚĐ͘ ĂŶĚ ĞŶƐƵƌĞ ƚŚĂƚ ŵĞĐŚĂŶŝƐŵƐ ĂƌĞ ƉƵƚ ŝŶ ƉůĂĐĞ ƚŽ ƉƌŽǀŝĚĞ ĨƵŶĚŝŶŐ ĨŽƌ ĂŶLJ ƉƌŽũĞĐƚĞĚ ŶĞŐĂƚŝǀĞ ŝŵƉĂĐƚƐ ŽŶ ŝƚLJ ŽƉĞƌĂƚŝŽŶƐ͘ ;'DKKƌĚŝŶĂŶĐĞͿ džƉĞŶĚŝƚƵƌĞƐ ϭ͘ƵĚŐĞƚĂƌLJ ĐŽŶƚƌŽů ǁŝůů ďĞ ĞdžĞƌĐŝƐĞĚ Ăƚ ƚŚĞ ĞƉĂƌƚŵĞŶƚͬĐĂƚĞŐŽƌLJ ůĞǀĞů͕ ŵĞĂŶŝŶŐ ƚŚĂƚ ĞĂĐŚ ĚĞƉĂƌƚŵĞŶƚ ŝƐ ĂƵƚŚŽƌŝnjĞĚ ƚŽ ƐƉĞŶĚ ƵƉ ƚŽ ƚŚĞ ƚŽƚĂůĂŵŽƵŶƚĂƉƉƌŽƉƌŝĂƚĞĚĨŽƌƚŚĂƚĚĞƉĂƌƚŵĞŶƚ ǁŝƚŚŝŶƚŚĞĞdžƉĞŶĚŝƚƵƌĞĐĂƚĞŐŽƌŝĞƐŽĨWĞƌƐŽŶŶĞů ŽƐƚƐ͕ ^ƵƉƉůŝĞƐ Θ ^ĞƌǀŝĐĞƐ͕ KƚŚĞƌ ŚĂƌŐĞƐ͕ hƚŝůŝƚŝĞƐ͕ĂŶĚĂƉŝƚĂů͘dƌĂŶƐĨĞƌƐŽĨĂƉƉƌŽƉƌŝĂƚŝŽŶƐ ďĞƚǁĞĞŶĞdžƉĞŶĚŝƚƵƌĞĐĂƚĞŐŽƌŝĞƐŽĨƵƉƚŽΨϭϱ͕ϬϬϬ ŵĂLJďĞĂƉƉƌŽǀĞĚďLJƚŚĞŝƚLJDĂŶĂŐĞƌ͘dƌĂŶƐĨĞƌƐ ŽĨ ĂƉƉƌŽƉƌŝĂƚŝŽŶƐ ďĞƚǁĞĞŶ ĞdžƉĞŶĚŝƚƵƌĞ ĐĂƚĞŐŽƌŝĞƐ ŝŶ ĞdžĐĞƐƐ ŽĨ Ψϭϱ͕ϬϬϬ͕ ďĞƚǁĞĞŶ ĚĞƉĂƌƚŵĞŶƚƐ͕ ĂŶĚ ƚƌĂŶƐĨĞƌƐ ĨƌŽŵ /W ƉƌŽũĞĐƚƐ ƌĞƋƵŝƌĞ ŝƚLJ ŽƵŶĐŝů ĂƉƉƌŽǀĂů͘;ŝƚLJ ŚĂƌƚĞƌ Θ ŽƵŶĐŝůWŽůŝĐLJͿ Ϯ͘ƉƉƌŽƉƌŝĂƚŝŽŶƐ͕ ŽƚŚĞƌ ƚŚĂŶ ĨŽƌ ĐĂƉŝƚĂů ƉƌŽũĞĐƚƐ͕ ƌĞŵĂŝŶŝŶŐƵŶƐƉĞŶƚĂƚƚŚĞĞŶĚŽĨĂŶLJĨŝƐĐĂůLJĞĂƌ ǁŝůůďĞĐĂŶĐĞůůĞĚĂŶĚƌĞƚƵƌŶĞĚƚŽǀĂŝůĂďůĞ&ƵŶĚ ĂůĂŶĐĞǁŝƚŚƚŚĞĞdžĐĞƉƚŝŽŶŽĨĂŶLJĂƉƉƌŽƉƌŝĂƚŝŽŶƐ ĞŶĐƵŵďĞƌĞĚ ĂƐ ƚŚĞ ƌĞƐƵůƚ ŽĨ Ă ǀĂůŝĚ ƉƵƌĐŚĂƐĞ ŽƌĚĞƌ Žƌ ĂƐ ĂƉƉƌŽǀĞĚ ĨŽƌ Ă ƐƉĞĐŝĨŝĐ ƉƌŽũĞĐƚ Žƌ ƉƵƌƉŽƐĞďLJƚŚĞŝƚLJŽƵŶĐŝůŽƌƚŚĞŝƚLJDĂŶĂŐĞƌ͘ ƉƉƌŽƉƌŝĂƚŝŽŶƐ ĨŽƌ ĐĂƉŝƚĂů ƉƌŽũĞĐƚƐ ǁŝůů ŶĞĐĞƐƐĂƌŝůLJ ďĞ ĐĂƌƌŝĞĚ ŽǀĞƌ ĨƌŽŵ LJĞĂƌ ƚŽ LJĞĂƌ ƵŶƚŝů ƚŚĞ ƉƌŽũĞĐƚ ŝƐ ĚĞĞŵĞĚ ƚŽ ďĞ ĐŽŵƉůĞƚĞ͘ ;ŽƵŶĐŝůWŽůŝĐLJͿ ϯ͘dŚĞŝƚLJǁŝůůĞƐƚĂďůŝƐŚĂŶĚŵĂŝŶƚĂŝŶĞƋƵŝƉŵĞŶƚ ƌĞƉůĂĐĞŵĞŶƚ ĂŶĚ ĨĂĐŝůŝƚLJ ŵĂŝŶƚĞŶĂŶĐĞ ĨƵŶĚƐ ĂƐ ĚĞĞŵĞĚŶĞĐĞƐƐĂƌLJƚŽĞŶƐƵƌĞƚŚĂƚŵŽŶŝĞƐĂƌĞƐĞƚ ĂƐŝĚĞĂŶĚĂǀĂŝůĂďůĞƚŽĨƵŶĚŽŶŐŽŝŶŐƌĞƉůĂĐĞŵĞŶƚ ŶĞĞĚƐ͘ ϰ͘dŚĞŝƚLJǁŝůůĂƚƚĞŵƉƚƚŽĐŽŵƉĞŶƐĂƚĞŶŽŶͲƐĂĨĞƚLJ ĞŵƉůŽLJĞĞƐĂƚƌĂƚĞƐĂďŽǀĞƚŚĞŵŝĚĚůĞŽĨƚŚĞůĂďŽƌ ŵĂƌŬĞƚ ĂƐ ŵĞĂƐƵƌĞĚ ďLJ ƚŚĞ ŵĞĚŝĂŶ ƌĂƚĞ ĨŽƌ ƐŝŵŝůĂƌũƵƌŝƐĚŝĐƚŝŽŶƐ͘;ŽƵŶĐŝůWŽůŝĐLJͿ ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ;/WͿ ϭ͘DĂũŽƌĐĂƉŝƚĂůƉƌŽũĞĐƚƐǁŝůůďĞŝŶĐůƵĚĞĚŝŶĂ/W ƵĚŐĞƚ ƌĞĨůĞĐƚŝŶŐ Ă ĨŝǀĞͲLJĞĂƌ ƉĞƌŝŽĚ͘ dŚĞ /W ďƵĚŐĞƚǁŝůůďĞƵƉĚĂƚĞĚĂŶŶƵĂůůLJĂŶĚƉƌĞƐĞŶƚĞĚ ƚŽŝƚLJŽƵŶĐŝůĨŽƌĂƉƉƌŽǀĂů͘ZĞƐŽƵƌĐĞƐǁŝůůďĞ ĨŽƌŵĂůůLJĂƉƉƌŽƉƌŝĂƚĞĚ;ďƵĚŐĞƚĞĚͿĨŽƌƚŚĞǀĂƌŝŽƵƐ ƉƌŽũĞĐƚƐŽŶĂŶĂŶŶƵĂůďĂƐŝƐŝŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚ ƚŚĞĨŝǀĞͲLJĞĂƌƉůĂŶ͘ ŝƚLJĞďƚWŽůŝĐLJΘĞďƚDĂŶĂŐĞŵĞŶƚ ϭ͘dŚĞŝƚLJǁŝůůĐŽŶƐŝĚĞƌƚŚĞƵƐĞŽĨĚĞďƚĨŝŶĂŶĐŝŶŐ ƉƌŝŵĂƌŝůLJĨŽƌĐĂƉŝƚĂůŝŵƉƌŽǀĞŵĞŶƚƉƌŽũĞĐƚƐ;/WͿ ǁŚĞŶ ƚŚĞ ƉƌŽũĞĐƚ͛Ɛ ƵƐĞĨƵů ůŝĨĞ ǁŝůů ĞdžĐĞĞĚ ƚŚĞ ƚĞƌŵ ŽĨ ƚŚĞ ĨŝŶĂŶĐŝŶŐ ĂŶĚ ǁŚĞŶ ƌĞƐŽƵƌĐĞƐ ĂƌĞ ŝĚĞŶƚŝĨŝĞĚ ƐƵĨĨŝĐŝĞŶƚ ƚŽ ĨƵŶĚ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ͘^ŽŵĞĞdžĐĞƉƚŝŽŶƐƚŽƚŚŝƐ/WĚƌŝǀĞŶ ĨŽĐƵƐĂƌĞƚŚĞŝƐƐƵĂŶĐĞŽĨĚĞďƚƐƵĐŚĂƐWĞŶƐŝŽŶ KďůŝŐĂƚŝŽŶ ŽŶĚƐ͕ ǁŚĞƌĞ ƚŚĞ ĨŝŶĂŶĐŝĂů ďĞŶĞĨŝƚƐ ĂƌĞƐŝŐŶŝĨŝĐĂŶƚůLJŐƌĞĂƚĞƌƚŚĂŶƚŚĞĐŽƐƚƐĂŶĚǁŚĞƌĞ ƚŚĞďĞŶĞĨŝƚƐĂƌĞĚĞƚĞƌŵŝŶĞĚƚŽďĞĂĨŝŶĂŶĐŝĂůůLJ ƉƌƵĚĞŶƚŽƉƚŝŽŶ͖ĂŶĚƐŚŽƌƚͲƚĞƌŵŝŶƐƚƌƵŵĞŶƚƐƐƵĐŚ ĂƐƚĂdžĂŶĚƌĞǀĞŶƵĞĂŶƚŝĐŝƉĂƚŝŽŶŶŽƚĞƐ͕ǁŚŝĐŚĂƌĞ ƚŽďĞƵƐĞĚĨŽƌƉƌƵĚĞŶƚĐĂƐŚŵĂŶĂŐĞŵĞŶƚ ƉƵƌƉŽƐĞƐ͘ŽŶĚĞĚĚĞďƚƐŚŽƵůĚŶŽƚďĞŝƐƐƵĞĚĨŽƌ ƉƌŽũĞĐƚƐǁŝƚŚŵŝŶŝŵĂůƉƵďůŝĐďĞŶĞĨŝƚŽƌƐƵƉƉŽƌƚ͕ Žƌ ƚŽ ĨŝŶĂŶĐĞ ŶŽƌŵĂů ŽƉĞƌĂƚŝŶŐ ĞdžƉĞŶƐĞƐ͘ ;ŽƵŶĐŝůWŽůŝĐLJͿ /Ĩ Ă ĚĞƉĂƌƚŵĞŶƚ ŚĂƐ ĂŶLJ ƉƌŽũĞĐƚ ǁŚŝĐŚ ŝƐ ĞdžƉĞĐƚĞĚƚŽƵƐĞĚĞďƚĨŝŶĂŶĐŝŶŐ͕ƚŚĞĚĞƉĂƌƚŵĞŶƚ ĚŝƌĞĐƚŽƌŝƐƌĞƐƉŽŶƐŝďůĞĨŽƌĞdžƉĞĚŝƚŝŽƵƐůLJƉƌŽǀŝĚŝŶŐ ƚŚĞ &ŝŶĂŶĐĞ ĞƉĂƌƚŵĞŶƚ ǁŝƚŚ ƌĞĂƐŽŶĂďůĞ ĐŽƐƚ 250 401 ʹͲͳͻ ĞƐƚŝŵĂƚĞƐ͕ ŝŶĐůƵĚŝŶŐ ƐƉĞĐŝĨŝĐ ƌĞǀĞŶƵĞ ĂĐĐŽƵŶƚƐ ƚŚĂƚǁŝůůƉƌŽǀŝĚĞƉĂLJŵĞŶƚĨŽƌƚŚĞĚĞďƚƐĞƌǀŝĐĞ͘ dŚŝƐǁŝůůĂůůŽǁƚŚĞ&ŝŶĂŶĐĞĞƉĂƌƚŵĞŶƚƚŽĚŽĂŶ ĂŶĂůLJƐŝƐŽĨƚŚĞƉƌŽũĞĐƚ͛ƐƉŽƚĞŶƚŝĂůŝŵƉĂĐƚŽŶƚŚĞ ŝƚLJ͛Ɛ ĚĞďƚ ĐĂƉĂĐŝƚLJ ĂŶĚ ůŝŵŝƚĂƚŝŽŶƐ͘;ŽƵŶĐŝů WŽůŝĐLJͿ Ϯ͘Ğďƚ ĐĂƉĂĐŝƚLJ ĂŶĚ ĂĨĨŽƌĚĂďŝůŝƚLJ ǁŝůů ďĞ ĚĞƚĞƌŵŝŶĞĚďLJĐŽŶĚƵĐƚŝŶŐǀĂƌŝŽƵƐĂŶĂůLJƐĞƐƉƌŝŽƌ ƚŽƚŚĞŝƐƐƵĂŶĐĞŽĨďŽŶĚƐ͘dŚĞĂŶĂůLJƐŝƐŽĨĚĞďƚ ĐĂƉĂĐŝƚLJƐŚŽƵůĚĐŽǀĞƌĂďƌŽĂĚƌĂŶŐĞŽĨĨĂĐƚŽƌƐ ŝŶĐůƵĚŝŶŐďƵƚůŝŵŝƚĞĚƚŽƚŚĞĨŽůůŽǁŝŶŐ͗ x^ƚĂƚƵƚŽƌLJ Žƌ ĐŽŶƐƚŝƚƵƚŝŽŶĂů ůŝŵŝƚĂƚŝŽŶƐ ĂĨĨĞĐƚŝŶŐ ƚŚĞ ĂŵŽƵŶƚ ƚŚĂƚ ĐĂŶ ďĞ ŝƐƐƵĞĚ͕ ƐƵĐŚĂƐůĞŐĂůůLJĂƵƚŚŽƌŝnjĞĚĚĞďƚůŝŵŝƚƐĂŶĚƚĂdž ŽƌĞdžƉĞŶĚŝƚƵƌĞĐĞŝůŝŶŐƐ xKƚŚĞƌ ůĞŐĂů ůŝŵŝƚĂƚŝŽŶƐ͕ ƐƵĐŚ ĂƐ ĐŽǀĞƌĂŐĞ ƌĞƋƵŝƌĞŵĞŶƚƐ Žƌ ĂĚĚŝƚŝŽŶĂů ďŽŶĚƐ ƚĞƐƚƐ ŝŵƉŽƐĞĚďLJďŽŶĚĐŽǀĞŶĂŶƚƐ x ǀĂůƵĂƚŝŽŶ ŽĨ ƚƌĞŶĚƐ ƌĞůĂƚŝŶŐ ƚŽ ƚŚĞ ŐŽǀĞƌŶŵĞŶƚ͛ƐĨŝŶĂŶĐŝĂůƉĞƌĨŽƌŵĂŶĐĞ͕ƐƵĐŚĂƐ ƌĞǀĞŶƵĞƐĂŶĚĞdžƉĞŶĚŝƚƵƌĞƐ͕ŶĞƚƌĞǀĞŶƵĞƐ ĂǀĂŝůĂďůĞ ĂĨƚĞƌ ŵĞĞƚŝŶŐ ŽƉĞƌĂƚŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ͕ ƌĞůŝĂďŝůŝƚLJ ŽĨ ƌĞǀĞŶƵĞƐ ĞdžƉĞĐƚĞĚƚŽƉĂLJĚĞďƚƐĞƌǀŝĐĞĂŶĚƵŶƌĞƐĞƌǀĞĚ ĨƵŶĚďĂůĂŶĐĞůĞǀĞůƐ xĞďƚƐĞƌǀŝĐĞĂƐĂƉĞƌĐĞŶƚĂŐĞŽĨƚŽƚĂů'ĞŶĞƌĂů &ƵŶĚZĞǀĞŶƵĞƐ dŚĞŝƚLJǁŝůůĂƚƚĞŵƉƚƚŽůŝŵŝƚƚŚĞƚŽƚĂůĂŵŽƵŶƚŽĨ ĂŶŶƵĂů ĚĞďƚ ƐĞƌǀŝĐĞ ƉĂLJŵĞŶƚƐ ƉĂLJĂďůĞ ďLJ ƚŚĞ 'ĞŶĞƌĂů&ƵŶĚƚŽŶŽŵŽƌĞƚŚĂŶϭϬйŽĨĞƐƚŝŵĂƚĞĚ ƚŽƚĂů'ĞŶĞƌĂů&ƵŶĚƌĞǀĞŶƵĞƐ͘hŶĚĞƌ^ƚĂƚĞ>Ăǁ͕ ŐĞŶĞƌĂůŽďůŝŐĂƚŝŽŶďŽŶĚƐƐŚĂůůŶŽƚĞdžĐĞĞĚϭϱйŽĨ ƚŽƚĂůĂƐƐĞƐƐĞĚǀĂůƵĂƚŝŽŶǁŝƚŚŝŶƚŚĞŝƚLJ͘ Ŷ ĂŶĂůLJƐŝƐ ƵƐŝŶŐ ĐƵƌƌĞŶƚ ŵĂƌŬĞƚ ƌĂƚĞƐ ĂŶĚ ĐŽŶƐĞƌǀĂƚŝǀĞ ƉƌŽũĞĐƚŝŽŶƐ ƐŚŽǁŝŶŐ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚƚŚĞĚĞďƚĂĨĨŽƌĚĂďŝůŝƚLJůŝŵŝƚĂƚŝŽŶƐŝŶĐůƵĚĞĚŝŶ ƚŚŝƐ ĞďƚWŽůŝĐLJƐŚĂůů ďĞĐŽŶĚƵĐƚĞĚ ďĞĨŽƌĞ ƚŚĞ ŝƐƐƵĂŶĐĞŽĨĂŶLJĚĞďƚǁŝƚŚĂŵĂƚƵƌŝƚLJůŽŶŐĞƌƚŚĂŶ ƚǁŽLJĞĂƌƐĨƌŽŵĚĂƚĞŽĨŝƐƐƵĞ͘ ĂƚĂƐŚŽǁŝŶŐĚŝƌĞĐƚĂŶĚŽǀĞƌůĂƉƉŝŶŐĚĞďƚůĞǀĞůƐ ĨŽƌ ƚŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ĂŶĚ ƐƵƌƌŽƵŶĚŝŶŐ ĂŐĞŶĐŝĞƐƚŚĂƚĂĨĨĞĐƚƚŚĞƌĞƐŝĚĞŶƚƐŽĨƚŚĞŝƚLJƐŚĂůů ďĞĐŽŵƉŝůĞĚĨŽƌŝŶĐůƵƐŝŽŶŝŶƚŚĞŽŵƉƌĞŚĞŶƐŝǀĞ ŶŶƵĂů &ŝŶĂŶĐŝĂů ZĞƉŽƌƚ ;&ZͿ ŽĨ ƚŚĞ ŝƚLJ͘ ;ŽƵŶĐŝůWŽůŝĐLJͿ ϯ͘/ŶŽƌĚĞƌƚŽŵĂdžŝŵŝnjĞƚŚĞĨŝŶĂŶĐŝĂůŽƉƚŝŽŶƐ ĂǀĂŝůĂďůĞƚŽďĞŶĞĨŝƚƚŚĞƉƵďůŝĐ͕ŝƚŝƐƚŚĞƉŽůŝĐLJŽĨ ƚŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ƚŽ ĂůůŽǁ ĨŽƌ ƚŚĞ ĐŽŶƐŝĚĞƌĂƚŝŽŶ ŽĨ ŝƐƐƵŝŶŐ Ăůů ŐĞŶĞƌĂůůLJ ĂĐĐĞƉƚĞĚ ƚLJƉĞƐŽĨĚĞďƚ͕ŝŶĐůƵĚŝŶŐ͕ďƵƚŶŽƚĞdžĐůƵƐŝǀĞƚŽƚŚĞ ĨŽůůŽǁŝŶŐ͗ x'ĞŶĞƌĂů KďůŝŐĂƚŝŽŶ ;'KͿ ŽŶĚƐ͗ 'ĞŶĞƌĂů KďůŝŐĂƚŝŽŶŽŶĚƐĂƌĞƐƵŝƚĂďůĞĨŽƌƵƐĞŝŶƚŚĞ ĐŽŶƐƚƌƵĐƚŝŽŶŽƌĂĐƋƵŝƐŝƚŝŽŶŽĨŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽƌĞĂůƉƌŽƉĞƌƚLJƚŚĂƚďĞŶĞĨŝƚƚŚĞƉƵďůŝĐĂƚ ůĂƌŐĞ͘ džĂŵƉůĞƐŽĨƉƌŽũĞĐƚƐŝŶĐůƵĚĞůŝďƌĂƌŝĞƐ͕ ƉĂƌŬƐ͕ ĂŶĚ ƉƵďůŝĐ ƐĂĨĞƚLJ ĨĂĐŝůŝƚŝĞƐ͘ ůů 'K ďŽŶĚƐƌĞƋƵŝƌĞĂϮͬϯǀŽƚĞŝŶŽƌĚĞƌƚŽƉĂƐƐ͘ xZĞǀĞŶƵĞŽŶĚƐ͗ZĞǀĞŶƵĞŽŶĚƐĂƌĞůŝŵŝƚĞĚͲ ůŝĂďŝůŝƚLJ ŽďůŝŐĂƚŝŽŶƐ ƚŝĞĚ ƚŽ Ă ƐƉĞĐŝĨŝĐ ĞŶƚĞƌƉƌŝƐĞ ƌĞǀĞŶƵĞ ƐƚƌĞĂŵ ǁŚĞƌĞ ƚŚĞ ƉƌŽũĞĐƚƐĨŝŶĂŶĐĞĚĐůĞĂƌůLJďĞŶĞĨŝƚŽƌƌĞůĂƚĞƚŽ ƚŚĞĞŶƚĞƌƉƌŝƐĞ͘ŶĞdžĂŵƉůĞŽĨƉƌŽũĞĐƚƐƚŚĂƚ ǁŽƵůĚďĞĨŝŶĂŶĐĞĚďLJĂZĞǀĞŶƵĞŽŶĚǁŽƵůĚ ďĞ ŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽ ƚŚĞ ƐĞǁĞƌ ƐLJƐƚĞŵ͕ ǁŚŝĐŚǁŽƵůĚďĞƉĂŝĚďĂĐŬǁŝƚŚŵŽŶĞLJƌĂŝƐĞĚ ĨƌŽŵ ƚŚĞ ƉƌŽƉĞƌƚLJ ŽǁŶĞƌ͛Ɛ ƐĞǁĞƌ ďŝůůƐ͘ 'ĞŶĞƌĂůůLJ͕ ŶŽ ǀŽƚĞƌ ĂƉƉƌŽǀĂů ŝƐ ƌĞƋƵŝƌĞĚ ƚŽ ŝƐƐƵĞƚŚŝƐƚLJƉĞŽĨŽďůŝŐĂƚŝŽŶďƵƚŵƵƐƚĐŽŵƉůLJ ǁŝƚŚ ƉƌŽƉŽƐŝƚŝŽŶ Ϯϭϴ ƌĞŐĂƌĚŝŶŐ ƌĂƚĞ ĂĚũƵƐƚŵĞŶƚƐ͘ x>ĞĂƐĞͲĂĐŬĞĚ ĞďƚͬĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ;KWͿ͗/ƐƐƵĂŶĐĞŽĨKWĚĞďƚŝƐĂ ĐŽŵŵŽŶůLJƵƐĞĚĨŽƌŵŽĨĚĞďƚƚŚĂƚĂůůŽǁƐĂ ŝƚLJ ƚŽ ĨŝŶĂŶĐĞ ƉƌŽũĞĐƚƐ ǁŚĞƌĞ ƚŚĞ ĚĞďƚ ƐĞƌǀŝĐĞŝƐƐĞĐƵƌĞĚǀŝĂĂůĞĂƐĞŽƌŝŶƐƚĂůůŵĞŶƚ ĂŐƌĞĞŵĞŶƚ ĂŶĚ ǁŚĞƌĞ ƚŚĞ ƉĂLJŵĞŶƚƐ ĂƌĞ ďƵĚŐĞƚĞĚŝŶƚŚĞĂŶŶƵĂůďƵĚŐĞƚĂƉƉƌŽƉƌŝĂƚŝŽŶ ďLJ ƚŚĞ ŝƚLJ ĨƌŽŵ ƚŚĞ ŐĞŶĞƌĂů ĨƵŶĚ͘ >ĞĂƐĞͲ ĂĐŬĞĚ ĚĞďƚ ĚŽĞƐ ŶŽƚ ĐŽŶƐƚŝƚƵƚĞ ŝŶĚĞďƚĞĚŶĞƐƐ ƵŶĚĞƌ ƚŚĞ ƐƚĂƚĞ Žƌ ƚŚĞ ŝƚLJ͛Ɛ ĐŽŶƐƚŝƚƵƚŝŽŶĂů ĚĞďƚ ůŝŵŝƚ ĂŶĚ ĚŽĞƐ ŶŽƚ ƌĞƋƵŝƌĞǀŽƚĞƌĂƉƉƌŽǀĂů͘ x^ƉĞĐŝĂůƐƐĞƐƐŵĞŶƚͬ^ƉĞĐŝĂůŝƐƚƌŝĐƚĞďƚ͗ƚŚĞ ŝƚLJǁŝůůĐŽŶƐŝĚĞƌƌĞƋƵĞƐƚƐĨƌŽŵĚĞǀĞůŽƉĞƌƐ ĨŽƌ ƚŚĞ ƵƐĞ ŽĨ ĚĞďƚ ĨŝŶĂŶĐŝŶŐ ƐĞĐƵƌĞĚ ďLJ ƉƌŽƉĞƌƚLJďĂƐĞĚĂƐƐĞƐƐŵĞŶƚƐŽƌƐƉĞĐŝĂůƚĂdžĞƐ ŝŶ ŽƌĚĞƌ ƚŽ ƉƌŽǀŝĚĞ ĨŽƌ ŶĞĐĞƐƐĂƌLJ ŝŶĨƌĂƐƚƌƵĐƚƵƌĞĨŽƌŶĞǁĚĞǀĞůŽƉŵĞŶƚŽŶůLJ ƵŶĚĞƌ ƐƚƌŝĐƚ ŐƵŝĚĞůŝŶĞƐ ĂĚŽƉƚĞĚ ďLJ ŝƚLJ 251 402 ʹͲͳͻ ŽƵŶĐŝů͕ǁŚŝĐŚŵĂLJŝŶĐůƵĚĞŵŝŶŝŵƵŵǀĂůƵĞͲ ƚŽͲůŝĞŶ ƌĂƚŝŽƐ ĂŶĚ ŵĂdžŝŵƵŵ ƚĂdž ďƵƌĚĞŶƐ͘ džĂŵƉůĞƐŽĨƚŚŝƐƚLJƉĞŽĨĚĞďƚĂƌĞƐƐĞƐƐŵĞŶƚ ŝƐƚƌŝĐƚƐ ;Ϳ ĂŶĚ ŽŵŵƵŶŝƚLJ &ĂĐŝůŝƚŝĞƐ ŝƐƚƌŝĐƚƐ;&ͿŽƌŵŽƌĞĐŽŵŵŽŶůLJŬŶŽǁŶĂƐ DĞůůŽͲZŽŽƐ ŝƐƚƌŝĐƚƐ͘ /Ŷ ŽƌĚĞƌ ƚŽ ƉƌŽƚĞĐƚ ďŽŶĚŚŽůĚĞƌƐ ĂƐ ǁĞůů ĂƐ ƚŚĞ ŝƚLJ͛Ɛ ĐƌĞĚŝƚ ƌĂƚŝŶŐ͕ Ăůů ZĂƚĞ 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xWƵƌĐŚĂƐŝŶŐďŽŶĚŝŶƐƵƌĂŶĐĞŽƌƚĂŬŝŶŐĂĐƚŝŽŶ ƚŽ ƵƉŐƌĂĚĞ ƚŚĞ ŝƚLJ͛Ɛ ĐƵƌƌĞŶƚ ĐƌĞĚŝƚ ƌĂƚŝŶŐ ;ŽƵŶĐŝůWŽůŝĐLJͿ ϱ͘dŚĞŝƚLJǁŝůůĐŽŵƉůLJǁŝƚŚZƵůĞϭϱ;ĐͿϮͲϭϮŽĨƚŚĞ ^ĞĐƵƌŝƚŝĞƐ džĐŚĂŶŐĞŽŵŵŝƐƐŝŽŶ;^ ͿĂŶĚ ƉƌŽǀŝĚĞƚŝŵĞůLJĚŝƐĐůŽƐƵƌĞŽĨƌĞůĞǀĂŶƚŝŶĨŽƌŵĂƚŝŽŶ 252 403 ʹͲͳͻ ŽŶĂŶĂŶŶƵĂůďĂƐŝƐĂƐǁĞůůĂƐĂŶLJŵĂƚĞƌŝĂůĞǀĞŶƚ ŶŽƚŝĐĞƐĂƐƌĞƋƵŝƌĞĚ͘;ŽƵŶĐŝůWŽůŝĐLJͿ ϲ͘/ŶĂĚĚŝƚŝŽŶƚŽĞdžƚĞƌŶĂůůLJĨŝŶĂŶĐĞĚĚĞďƚ͕ƚŚĞŝƚLJ ƵƚŝůŝnjĞƐ ŝŶƚĞƌͲĨƵŶĚ ůŽĂŶƐ ǁŚĞŶĞǀĞƌ ƉŽƐƐŝďůĞ ƚŽ ƌĞĚƵĐĞ ďŽƌƌŽǁŝŶŐ ĐŽƐƚƐ Žƌ ƉƌŽǀŝĚĞ ĨŽƌ ƐŚŽƌƚĞƌ ƚĞƌŵůŽĂŶƐ͘tŚĞŶŝŶƚĞƌĞƐƚŝƐĐŚĂƌŐĞĚŽŶŝŶƚĞƌŶĂů ůŽĂŶƐ͕ŝƚŝƐĚŽŶĞĂƚƚŚĞƐĂŵĞƌĂƚĞƚŚĞŝƚLJĞĂƌŶƐ ĨƌŽŵŝƚƐƉŽŽůĞĚŝŶǀĞƐƚŵĞŶƚƐ͘ ^ĞǁĞƌ^ĞƌǀŝĐĞZĞǀĞŶƵĞ&ƵŶĚZĞƐĞƌǀĞWŽůŝĐLJ ϭ͘tŽƌŬŝŶŐĂƉŝƚĂůĂŶĚZĂƚĞ^ƚĂďŝůŝnjĂƚŝŽŶZĞƐĞƌǀĞ tŽƌŬŝŶŐĂƉŝƚĂůĂŶĚZĂƚĞ^ƚĂďŝůŝnjĂƚŝŽŶƌĞƐĞƌǀĞƐ ŝŶ ƚŚĞ ^ĞǁĞƌ ^ĞƌǀŝĐĞ ZĞǀĞŶƵĞ &ƵŶĚ ǁŝůů ďĞ ƌĞƐƚƌŝĐƚĞĚ ƚŽ ŵĂŝŶƚĂŝŶŝŶŐ ŽƉĞƌĂƚŝŶŐ ƚŚĞ ǁĂƐƚĞǁĂƚĞƌ ĐŽůůĞĐƚŝŽŶ ƐLJƐƚĞŵ ĂŶĚ ƉĂLJŝŶŐ ƚƌĞĂƚŵĞŶƚ ĐŚĂƌŐĞƐ ƚŽ ŝƚLJ ŽĨ ^ĂŶ ŝĞŐŽ DĞƚƌŽƉŽůŝƚĂŶtĂƐƚĞǁĂƚĞƌ;͞DĞƚƌŽ͟Ϳ͘dŚĞƌĞƐĞƌǀĞ ǁŝůůďĞĨƵŶĚĞĚĨƌŽŵƌĞǀĞŶƵĞƐĂĐĐƵŵƵůĂƚĞĚŝŶƚŚĞ ^ĞǁĞƌ ^ĞƌǀŝĐĞ ZĞǀĞŶƵĞ &ƵŶĚ͘ /d ŝƐ ŝŶƚĞŶĚĞĚ ƚŽ ĂĐĐŽŵŵŽĚĂƚĞĂŶLJŶĂƚƵƌĂůǀĂƌŝĂďŝůŝƚLJŝŶƌĞǀĞŶƵĞƐ ĂŶĚĞdžƉĞŶĚŝƚƵƌĞƐ͕ŝŶĐůƵĚŝŶŐƉŽƚĞŶƚŝĂůĚŝƐƌƵƉƚŝŽŶƐ ŽĨĐĂƐŚĨůŽǁƐĚƵĞƚŽǀĂƌŝĞĚďŝůůŝŶŐŵĞƚŚŽĚŽůŽŐLJ͕ ƐŚŽƌƚ ƚĞƌŵ ĨůƵĐƚƵĂƚŝŽŶƐ ĂŶĚ ĂŶŶƵĂů ĐLJĐůĞƐ͘ dŚĞ ƌĞƐĞƌǀĞ ǁŝůů ĂůƐŽ ĂƐƐŝƐƚ ŝŶ ĂĚĚƌĞƐƐŝŶŐ ƐŚŽƌƚĨĂůůƐ ǁŚŝĐŚ ŵĂLJ ŽĐĐƵƌ ĚƵĞ ƚŽ ƵŶĂŶƚŝĐŝƉĂƚĞĚ ĐŽƐƚ ŝŶĐƌĞĂƐĞƐ ŝŶ ůĂďŽƌ Žƌ ĞŶĞƌŐLJ ĂŶĚ ŽƚŚĞƌ ĐŽŶƐƵŵƉƚŝŽŶďĂƐĞĚŐŽŽĚƐĂŶĚƐĞƌǀŝĐĞƐ͕ƐƵĐŚĂƐ ǁĂƐƚĞǁĂƚĞƌ ƚƌĞĂƚŵĞŶƚ ƐĞƌǀŝĐĞƐ ƉƌŽǀŝĚĞĚ ďLJ DĞƚƌŽ͘ dŚĞ ƌĞƐĞƌǀĞƐ ƌĞƉƌĞƐĞŶƚ ƵŶƌĞƐƚƌŝĐƚĞĚ ƌĞƐŽƵƌĐĞƐĂǀĂŝůĂďůĞĨŽƌĂƉƉƌŽƉƌŝĂƚŝŽŶďLJƚŚĞŝƚLJ ŽƵŶĐŝůĂĚĚƌĞƐƐŝŶŐƵŶĨŽƌĞƐĞĞŶŶĞĞĚƐĨŽƌƐĞǁĞƌ ƐĞƌǀŝĐĞƐ͘ dŚĞ tŽƌŬŝŶŐ ĂƉŝƚĂů ĂŶĚ ZĂƚĞ ^ƚĂďŝůŝnjĂƚŝŽŶ ZĞƐĞƌǀĞƐ ǁŝůů ĂƐƐŝƐƚ ƚŚĞ ŝƚLJ ŝŶ ĂĚĚƌĞƐƐŝŶŐ ƚŚĞ ĨŽůůŽǁŝŶŐŝƚĞŵƐ͗ xZĂƚĞ ^ƚĂďŝůŝnjĂƚŝŽŶ ʹ ƚŚĞ ƌĞƐĞƌǀĞƐ ǁŝůů ĂůůŽǁ ƚŚĞŝƚLJƚŚĞĨůĞdžŝďŝůŝƚLJƚŽ͞ƐŵŽŽƚŚ͟ƌĂƚĞƐĂŶĚ ƉŚĂƐĞŝŶĐƌĞĂƐĞƐŝŶŽǀĞƌŵƵůƚŝƉůĞLJĞĂƌƐ͕ǁŚŝĐŚ ŝƐ ƉƌƵĚĞŶƚ ŐŝǀĞŶ ƚŚĞ ƉŽƚĞŶƚŝĂů ǀĂƌŝĂďŝůŝƚLJ ŝŶ ƚŚĞŝƚLJ͛ƐƉĂLJŵĞŶƚƐƚŽDĞƚƌŽ͘ xZĞǀĞŶƵĞ ŽůůĞĐƚŝŽŶ &ůƵĐƚƵĂƚŝŽŶƐ ʹ ƚŚĞ ƌĞƐĞƌǀĞƐǁŝůůďĞƵƐĞĚƚŽƉƌŽƚĞĐƚƚŚĞŝƚLJĨƌŽŵ ŶĂƚƵƌĂů ĨůƵĐƚƵĂƚŝŽŶƐ ŝŶ ƌĞǀĞŶƵĞ ĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞ ĐLJĐůĞƐ ǁŚŝĐŚ ŝƐ ƉƌƵĚĞŶƚ 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WWĞƌŵŝƚ ZĞŶĞǁĂů>ŝĂďŝůŝƚLJZĞƐĞƌǀĞǁŝůůĂĐĐŽƵŶƚĨŽƌŵŽŶŝĞƐ ƐĞƚĂƐŝĚĞƚŽĨƵŶĚƚŚĞŝƚLJŽĨ^ĂŶŝĞŐŽ DĞƚƌŽƉŽůŝƚĂŶ tĂƐƚĞǁĂƚĞƌ ĐŽƐƚƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ƉŽƚĞŶƚŝĂůƵƉŐƌĂĚĞŽĨƚŚĞWŽŝŶƚ>ŽŵĂtĂƐƚĞǁĂƚĞƌ dƌĞĂƚŵĞŶƚWůĂŶƚ;W>tdWͿŽƌŽƚŚĞƌĂůƚĞƌŶĂƚŝǀĞĨŽƌ ƐĞĐŽŶĚĂƌLJƚƌĞĂƚŵĞŶƚ͘dŚĞƌĞƐĞƌǀĞǁŝůůďĞĨƵŶĚĞĚ ĨƌŽŵƌĞǀĞŶƵĞƐĂĐĐƵŵƵůĂƚĞĚŝŶƚŚĞ^ĞǁĞƌ^ĞƌǀŝĐĞ ZĞǀĞŶƵĞ&ƵŶĚ͘ DĞƚƌŽ͛Ɛ h^ W ǁĂŝǀĞƌ ĞdžƉŝƌĞƐ ŝŶ &z ϮϬϭϱ ĂŶĚ ŵĂLJ ŶŽƚ ďĞ ƌĞŶĞǁĞĚ͘ /Ĩ ĚĞŶŝĞĚ͕ DĞƚƌŽ ǁŽƵůĚ ŶĞĞĚƚŽĚĞǀĞůŽƉĂŶĚŝŵƉůĞŵĞŶƚŝŵƉƌŽǀĞŵĞŶƚƐ ƚŽĂĐŚŝĞǀĞƐĞĐŽŶĚĂƌLJƚƌĞĂƚŵĞŶƚůĞǀĞůĂƚW>tdW͘ ƵƌƌĞŶƚĐŽƐƚĞƐƚŝŵĂƚĞƐƚŽĞƐƚĂďůŝƐŚĨƵůůƐĞĐŽŶĚĂƌLJ ƚƌĞĂƚŵĞŶƚ Ăƚ W>tdW ĂƐ ǁĞůů ĂƐ ƉŽƐƐŝďůĞ ĂůƚĞƌŶĂƚŝǀĞƐĂƌĞĂůůƐŝŐŶŝĨŝĐĂŶƚ;хΨϭŝůůŝŽŶͿ͘ƐĂ ĐŽŶƚƌŝďƵƚŝŶŐŵĞŵďĞƌƚŽƚŚĞƌĞŐŝŽŶĂůƚƌĞĂƚŵĞŶƚ ƉůĂŶƚ͕ƚŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ͛ƐƐŚĂƌĞŝŶƚŚĞĐŽƐƚ ŽĨ ĂŶLJ ƵƉŐƌĂĚĞ ǁŽƵůĚ ďĞ ĂƉƉƌŽdžŝŵĂƚĞůLJ ϭϬ ƉĞƌĐĞŶƚ ĨŽƌ ƚŚĞ ĐĂƉŝƚĂů ŝŵƉƌŽǀĞŵĞŶƚƐ ĂŶĚ ĂŶLJ ŝŶĐƌĞĂƐĞ ŝŶ ƚŚĞ ŽǀĞƌĂůů ƚƌĞĂƚŵĞŶƚ ĐŽƐƚ͘ /ƚ ŝƐ ĞdžƉĞĐƚĞĚƚŚĂƚDĞƚƌŽǁŝůůŚĂǀĞϭϬLJĞĂƌƐĂĨƚĞƌƚŚĞ ĞdžƉŝƌĂƚŝŽŶ ŽĨ ƚŚĞ h^ W ǁĂŝǀĞƌ ƚŽ ŝŶƐƚŝƚƵƚĞ ƐĞĐŽŶĚĂƌLJƚƌĞĂƚŵĞŶƚŽƌĂůƚĞƌŶĂƚŝǀĞ͘dŚŝƐƌĞƐĞƌǀĞ ĞƐƚĂďůŝƐŚĞƐ Ă ĚĞĚŝĐĂƚĞĚ ĨƵŶĚ ƚŚĂƚ ǁŝůů 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ĂůƚĞƌŶĂƚŝǀĞĂƌĞůĞƐƐƚŚĂŶĂŶƚŝĐŝƉĂƚĞĚ͕ĂŶLJƵŶƐƉĞŶƚ ƌĞƐĞƌǀĞƐǁŝůůďĞƌŽůůĞĚŝŶƚŽƚŚĞtŽƌŬŝŶŐĂƉŝƚĂů ĂŶĚ ZĂƚĞ ^ƚĂďŝůŝnjĂƚŝŽŶ ZĞƐĞƌǀĞ ĂŶĚ ƵƚŝůŝnjĞĚ ƚŽ ĨƵŶĚ ŝƚLJ ƐĞǁĞƌ ƉƌŽŐƌĂŵƐ͕ ŝŶĐůƵĚŝŶŐ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ĞdžƉĂŶƐŝŽŶ ŽĨ ƚŚĞ ŝƚLJ͛Ɛ ĐŽŶǀĞLJĂŶĐĞ ƐLJƐƚĞŵ ĂŶĚ ƉĂLJŵĞŶƚ ŽĨ ^ĂŶ ŝĞŐŽ DĞƚƌŽ ǁĂƐƚĞǁĂƚĞƌ ƚƌĞĂƚŵĞŶƚ ĐŽƐƚƐ͘;ŽƵŶĐŝů WŽůŝĐLJͿ 254 405 ʹͲͳͻ 255 406 256 407 ʹͲͳͻ ϭ͘ϬWƵƌƉŽƐĞ dŚŝƐ ͞/ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ ĂŶĚ 'ƵŝĚĞůŝŶĞƐ͟ ;ƚŚĞ ͞/ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ͟Ϳ WŽůŝĐLJ ŝƐ ŝŶƚĞŶĚĞĚ ƚŽ ƉƌŽǀŝĚĞ ŐƵŝĚĞůŝŶĞƐĨŽƌƚŚĞƉƌƵĚĞŶƚŝŶǀĞƐƚŵĞŶƚŽĨƚŚĞŝƚLJŽĨ ŚƵůĂsŝƐƚĂ͛Ɛ;ƚŚĞ͞ŝƚLJ͟ͿĐĂƐŚďĂůĂŶĐĞƐ͕ĂŶĚŽƵƚůŝŶĞ ƉŽůŝĐŝĞƐƚŽĂƐƐŝƐƚŝŶŵĂdžŝŵŝnjŝŶŐƚŚĞĞĨĨŝĐŝĞŶĐLJŽĨƚŚĞ ŝƚLJ͛ƐĐĂƐŚŵĂŶĂŐĞŵĞŶƚƐLJƐƚĞŵ͕ǁŚŝůĞŵĞĞƚŝŶŐƚŚĞ ĚĂŝůLJĐĂƐŚĨůŽǁĚĞŵĂŶĚƐŽĨƚŚĞŝƚLJ͘ Ϯ͘ϬWŽůŝĐLJ dŚĞŝŶǀĞƐƚŵĞŶƚƉƌĂĐƚŝĐĞƐĂŶĚƉŽůŝĐŝĞƐŽĨƚŚĞŝƚLJŽĨ ŚƵůĂsŝƐƚĂĂƌĞďĂƐĞĚƵƉŽŶƐƚĂƚĞůĂǁĂŶĚƉƌƵĚĞŶƚ ŵŽŶĞLJŵĂŶĂŐĞŵĞŶƚ͘ ϯ͘Ϭ^ĐŽƉĞ dŚŝƐ/ŶǀĞƐƚŵĞŶƚWŽůŝĐLJĂƉƉůŝĞƐƚŽĂůůĨŝŶĂŶĐŝĂůĂƐƐĞƚƐ ŽĨƚŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ͕ĂƐŝŶĚŝĐĂƚĞĚŝŶϯ͘ϭďĞůŽǁ͘ dŚĞƐĞ ĨƵŶĚƐ ĂƌĞ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ŝŶ ƚŚĞ ŝƚLJ͛Ɛ ŽŵƉƌĞŚĞŶƐŝǀĞŶŶƵĂů&ŝŶĂŶĐŝĂůZĞƉŽƌƚ͘ ϯ͘ϭ&ƵŶĚƐ 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ƉĞƌĐĞŶƚĂŐĞ ůŝŵŝƚĂƚŝŽŶƐ ůŝƐƚĞĚ ĞůƐĞǁŚĞƌĞ ŝŶ ƚŚŝƐ WŽůŝĐLJĚŽŶŽƚĂƉƉůLJƚŽďŽŶĚƉƌŽĐĞĞĚƐ͘ ϰ͘ϬWƌƵĚĞŶĐĞ dŚĞƐƚĂŶĚĂƌĚŽĨƉƌƵĚĞŶĐĞƚŽďĞƵƐĞĚďLJƚŚĞŝƌĞĐƚŽƌ ŽĨ&ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌƐŚĂůůďĞƚŚĞ͞ƉƌƵĚĞŶƚŝŶǀĞƐƚŽƌ ƐƚĂŶĚĂƌĚ͘͟ dŚŝƐ ƐŚĂůů ďĞ ĂƉƉůŝĞĚ ŝŶ ƚŚĞ ĐŽŶƚĞdžƚ ŽĨ ŵĂŶĂŐŝŶŐĂŶŽǀĞƌĂůůƉŽƌƚĨŽůŝŽ͘dŚĞ͞ƉƌƵĚĞŶƚŝŶǀĞƐƚŽƌ ƐƚĂŶĚĂƌĚ͟ŝƐĂƉƉůŝĞĚƚŽůŽĐĂůĂŐĞŶĐŝĞƐ͕ƉƵƌƐƵĂŶƚƚŽ ĂůŝĨŽƌŶŝĂ'ŽǀĞƌŶŵĞŶƚŽĚĞ^ĞĐƚŝŽŶϱϯϲϬϬ͘ϯǁŚŝĐŚ ƉƌŽǀŝĚĞƐ͕ŝŶƉĞƌƚŝŶĞŶƚƉĂƌƚ͗ ͞ ͙ Ăůů ŐŽǀĞƌŶŝŶŐ ďŽĚŝĞƐ ŽĨ ůŽĐĂů ĂŐĞŶĐŝĞƐ Žƌ ƉĞƌƐŽŶƐ ĂƵƚŚŽƌŝnjĞĚ ƚŽ ŵĂŬĞ ŝŶǀĞƐƚŵĞŶƚ ĚĞĐŝƐŝŽŶƐ ŽŶ ďĞŚĂůĨ ŽĨ ƚŚŽƐĞ ůŽĐĂů ĂŐĞŶĐŝĞƐ ŝŶǀĞƐƚŝŶŐ ƉƵďůŝĐ ĨƵŶĚƐ ƉƵƌƐƵĂŶƚ ƚŽƚŚŝƐ ĐŚĂƉƚĞƌ ĂƌĞƚƌƵƐƚĞĞƐĂŶĚƚŚĞƌĞĨŽƌĞĨŝĚƵĐŝĂƌŝĞƐƐƵďũĞĐƚƚŽ ƚŚĞƉƌƵĚĞŶƚŝŶǀĞƐƚŽƌƐƚĂŶĚĂƌĚ͘tŚĞŶŝŶǀĞƐƚŝŶŐ͕ ƌĞŝŶǀĞƐƚŝŶŐ͕ ƉƵƌĐŚĂƐŝŶŐ͕ ĂĐƋƵŝƌŝŶŐ͕ ĞdžĐŚĂŶŐŝŶŐ͕ ƐĞůůŝŶŐ͕ŽƌŵĂŶĂŐŝŶŐƉƵďůŝĐĨƵŶĚƐ͕ĂƚƌƵƐƚĞĞƐŚĂůů ĂĐƚǁŝƚŚĐĂƌĞ͕ƐŬŝůů͕ƉƌƵĚĞŶĐĞ͕ĂŶĚĚŝůŝŐĞŶĐĞƵŶĚĞƌ ƚŚĞĐŝƌĐƵŵƐƚĂŶĐĞƐƚŚĞŶƉƌĞǀĂŝůŝŶŐ͕ŝŶĐůƵĚŝŶŐ͕ďƵƚ ŶŽƚůŝŵŝƚĞĚƚŽ͕ƚŚĞŐĞŶĞƌĂůĞĐŽŶŽŵŝĐĐŽŶĚŝƚŝŽŶƐ ĂŶĚƚŚĞĂŶƚŝĐŝƉĂƚĞĚŶĞĞĚƐŽĨƚŚĞĂŐĞŶĐLJ͕ƚŚĂƚĂ ƉƌƵĚĞŶƚ ƉĞƌƐŽŶ ĂĐƚŝŶŐ ŝŶ Ă ůŝŬĞ ĐĂƉĂĐŝƚLJ ĂŶĚ ĨĂŵŝůŝĂƌŝƚLJǁŝƚŚƚŚŽƐĞŵĂƚƚĞƌƐǁŽƵůĚƵƐĞŝŶƚŚĞ ĐŽŶĚƵĐƚŽĨĨƵŶĚƐŽĨĂůŝŬĞĐŚĂƌĂĐƚĞƌĂŶĚǁŝƚŚůŝŬĞ ĂŝŵƐ͕ƚŽƐĂĨĞŐƵĂƌĚƚŚĞƉƌŝŶĐŝƉĂůĂŶĚŵĂŝŶƚĂŝŶƚŚĞ ůŝƋƵŝĚŝƚLJŶĞĞĚƐŽĨƚŚĞĂŐĞŶĐLJ͙͟ ϰ͘ϭWĞƌƐŽŶĂůZĞƐƉŽŶƐŝďŝůŝƚLJ dŚĞŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ͕ƐƐŝƐƚĂŶƚŝƌĞĐƚŽƌ ŽĨ&ŝŶĂŶĐĞ͕dƌĞĂƐƵƌLJDĂŶĂŐĞƌĂŶĚ&ŝŶĂŶĐĞDĂŶĂŐĞƌ ĂƐ ŝŶǀĞƐƚŵĞŶƚ ŽĨĨŝĐĞƌƐ ĂĐƚŝŶŐ ŝŶ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ǁƌŝƚƚĞŶ ƉƌŽĐĞĚƵƌĞƐ ĂŶĚ ƚŚĞ /ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ ĂŶĚ ĞdžĞƌĐŝƐŝŶŐĚƵĞĚŝůŝŐĞŶĐĞ͕ƐŚĂůůďĞƌĞůŝĞǀĞĚŽĨƉĞƌƐŽŶĂů ƌĞƐƉŽŶƐŝďŝůŝƚLJĨŽƌĂŶŝŶĚŝǀŝĚƵĂůƐĞĐƵƌŝƚLJ͛ƐĐƌĞĚŝƚƌŝƐŬŽƌ ŵĂƌŬĞƚ ƉƌŝĐĞ ĐŚĂŶŐĞƐ͕ ƉƌŽǀŝĚĞĚ ĚĞǀŝĂƚŝŽŶƐ ĨƌŽŵ ĞdžƉĞĐƚĂƚŝŽŶƐ ĂƌĞ ƌĞƉŽƌƚĞĚ ƚŽ ƚŚĞ ŝƚLJ ŽƵŶĐŝů ŝŶ Ă 257 408 ʹͲͳͻ ƚŝŵĞůLJ ĨĂƐŚŝŽŶ ĂŶĚ ĂƉƉƌŽƉƌŝĂƚĞ ĂĐƚŝŽŶ ŝƐ ƚĂŬĞŶ ƚŽ ĐŽŶƚƌŽůĂĚǀĞƌƐĞĚĞǀĞůŽƉŵĞŶƚƐ͘ ϱ͘ϬKďũĞĐƚŝǀĞ ŽŶƐŝƐƚĞŶƚ ǁŝƚŚ ƚŚŝƐ Ăŝŵ͕ ŝŶǀĞƐƚŵĞŶƚƐ ĂƌĞ ŵĂĚĞ ƵŶĚĞƌ ƚŚĞ ƚĞƌŵƐ ĂŶĚ ĐŽŶĚŝƚŝŽŶƐ ŽĨ ĂůŝĨŽƌŶŝĂ 'ŽǀĞƌŶŵĞŶƚŽĚĞ^ĞĐƚŝŽŶϱϯϲϬϬ͕ĞƚƐĞƋ͘ƌŝƚĞƌŝĂĨŽƌ ƐĞůĞĐƚŝŶŐ ŝŶǀĞƐƚŵĞŶƚƐ ĂŶĚ ƚŚĞ ĂďƐŽůƵƚĞ ŽƌĚĞƌ ŽĨ ƉƌŝŽƌŝƚLJĂƌĞ͗ ϱ͘ϭ^ĂĨĞƚLJ ^ĂĨĞƚLJŽĨƉƌŝŶĐŝƉĂůŝƐƚŚĞĨŽƌĞŵŽƐƚŽďũĞĐƚŝǀĞŽĨƚŚĞ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽŐƌĂŵ͘ /ŶǀĞƐƚŵĞŶƚƐ ŽĨ ƚŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ƐŚĂůů ďĞ ƵŶĚĞƌƚĂŬĞŶ ŝŶ Ă ŵĂŶŶĞƌ ƚŚĂƚ ƐĞĞŬƐ ƚŽ ĞŶƐƵƌĞ ƚŚĞ ƉƌĞƐĞƌǀĂƚŝŽŶ ŽĨ ĐĂƉŝƚĂů ŝŶ ƚŚĞ ŽǀĞƌĂůů ƉŽƌƚĨŽůŝŽ͘ dŽ ĂƚƚĂŝŶ ƚŚŝƐ ŽďũĞĐƚŝǀĞ͕ ĚŝǀĞƌƐŝĨŝĐĂƚŝŽŶ ŝƐ ƌĞƋƵŝƌĞĚ ŝŶ ŽƌĚĞƌ ƚŚĂƚ ƉŽƚĞŶƚŝĂů ůŽƐƐĞƐ ŽŶ ŝŶĚŝǀŝĚƵĂů ƐĞĐƵƌŝƚŝĞƐ ĚŽ ŶŽƚ ĞdžĐĞĞĚ ƚŚĞ ŝŶĐŽŵĞ ŐĞŶĞƌĂƚĞĚ ĨƌŽŵ ƚŚĞ ƌĞŵĂŝŶĚĞƌ ŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ͘ ϱ͘Ϯ>ŝƋƵŝĚŝƚLJ dŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ͛Ɛ ŝŶǀĞƐƚŵĞŶƚ ƉŽƌƚĨŽůŝŽ ǁŝůů ƌĞŵĂŝŶƐƵĨĨŝĐŝĞŶƚůLJůŝƋƵŝĚƚŽĞŶĂďůĞƚŚĞŝƚLJƚŽŵĞĞƚ Ăůů ŽƉĞƌĂƚŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ ǁŚŝĐŚ ŵŝŐŚƚ ďĞ ƌĞĂƐŽŶĂďůLJĂŶƚŝĐŝƉĂƚĞĚĂŶĚƚŽŵĂŝŶƚĂŝŶĐŽŵƉůŝĂŶĐĞ ǁŝƚŚĂŶLJŝŶĚĞŶƚƵƌĞĂŐƌĞĞŵĞŶƚ͕ĂƐĂƉƉůŝĐĂďůĞ͘ >ŝƋƵŝĚŝƚLJŝƐĞƐƐĞŶƚŝĂůƚŽƚŚĞƐĂĨĞƚLJŽĨƉƌŝŶĐŝƉĂů͘ ϱ͘ϯZĞƚƵƌŶŽŶ/ŶǀĞƐƚŵĞŶƚƐ dŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ͛ƐŝŶǀĞƐƚŵĞŶƚƉŽƌƚĨŽůŝŽƐŚĂůůďĞ ĚĞƐŝŐŶĞĚ ǁŝƚŚ ƚŚĞ ŽďũĞĐƚŝǀĞ ŽĨ ĂƚƚĂŝŶŝŶŐ Ă ŵĂƌŬĞƚͲ ĂǀĞƌĂŐĞ ƌĂƚĞ ŽĨ ƌĞƚƵƌŶ ƚŚƌŽƵŐŚŽƵƚ ďƵĚŐĞƚĂƌLJ ĂŶĚ ĞĐŽŶŽŵŝĐĐLJĐůĞƐ;ŵĂƌŬĞƚŝŶƚĞƌĞƐƚƌĂƚĞƐͿ͕ǁŝƚŚŝŶƚŚĞ ŝƚLJ͛Ɛ /ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ͛Ɛ ƌŝƐŬ ƉĂƌĂŵĞƚĞƌƐ ĂŶĚ ƚŚĞ ŝƚLJ͛ƐĐĂƐŚĨůŽǁŶĞĞĚƐ͘^ĞĞĂůƐŽ^ĞĐƚŝŽŶϭϲ͘Ϭ͘ ϲ͘ϬĞůĞŐĂƚŝŽŶŽĨƵƚŚŽƌŝƚLJ dŚĞ ŝƚLJ ŽƵŶĐŝů ĚĞůĞŐĂƚĞƐ ƌĞƐƉŽŶƐŝďŝůŝƚLJ ĨŽƌ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽŐƌĂŵ ƚŽ ƚŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌĨŽƌĂƉĞƌŝŽĚŽĨŽŶĞLJĞĂƌ͘^ƵďũĞĐƚ ƚŽƌĞǀŝĞǁ͕ƚŚĞŝƚLJŽƵŶĐŝůŵĂLJƌĞŶĞǁƚŚĞĚĞůĞŐĂƚŝŽŶ ŽĨ ĂƵƚŚŽƌŝƚLJ ĞĂĐŚ LJĞĂƌ͘ dŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ƐŚĂůů ďĞ ƌĞƐƉŽŶƐŝďůĞ ĨŽƌ Ăůů ƚƌĂŶƐĂĐƚŝŽŶƐƵŶĚĞƌƚĂŬĞŶĂŶĚƐŚĂůůĞƐƚĂďůŝƐŚĂƐLJƐƚĞŵ ŽĨĐŽŶƚƌŽůƐĂŶĚǁƌŝƚƚĞŶƉƌŽĐĞĚƵƌĞƐƚŽƌĞŐƵůĂƚĞƚŚĞ ĂĐƚŝǀŝƚŝĞƐŽĨƐƵďŽƌĚŝŶĂƚĞŽĨĨŝĐŝĂůƐ͘dŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJ ĨŽƌƚŚĞĚĂLJͲƚŽͲĚĂLJŝŶǀĞƐƚŵĞŶƚŽĨŝƚLJĨƵŶĚƐǁŝůůďĞ ĚĞůĞŐĂƚĞĚƚŽƚŚĞƐƐŝƐƚĂŶƚŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞŽƌ ƚŚĞŝƌ ĚĞƐŝŐŶĞĞ͘ dŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ŵĂLJĚĞůĞŐĂƚĞĚĂLJͲƚŽͲĚĂLJŝŶǀĞƐƚŵĞŶƚĚĞĐŝƐŝŽŶŵĂŬŝŶŐ ĂŶĚ ĞdžĞĐƵƚŝŽŶ ĂƵƚŚŽƌŝƚLJ ƚŽ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ĂĚǀŝƐŽƌ͘ dŚĞ ĂĚǀŝƐŽƌ ƐŚĂůů ĨŽůůŽǁƚŚĞ /ŶǀĞƐƚŵĞŶƚWŽůŝĐLJ ĂŶĚ ƐƵĐŚŽƚŚĞƌǁƌŝƚƚĞŶŝŶƐƚƌƵĐƚŝŽŶƐĂƐĂƌĞƉƌŽǀŝĚĞĚ͘ ϳ͘Ϭ ƚŚŝĐƐĂŶĚŽŶĨůŝĐƚƐŽĨ/ŶƚĞƌĞƐƚ /Ŷ ĂĚĚŝƚŝŽŶ ƚŽ ƐƚĂƚĞ ĂŶĚ ůŽĐĂů ƐƚĂƚƵƚĞƐ ƌĞůĂƚŝŶŐ ƚŽ ĐŽŶĨůŝĐƚƐ ŽĨ ŝŶƚĞƌĞƐƚ͕ Ăůů ƉĞƌƐŽŶƐ ŝŶǀŽůǀĞĚ ŝŶ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽĐĞƐƐ ƐŚĂůů ƌĞĨƌĂŝŶ ĨƌŽŵ ƉĞƌƐŽŶĂů ďƵƐŝŶĞƐƐ ĂĐƚŝǀŝƚLJ ƚŚĂƚ ĐŽƵůĚ ĐŽŶĨůŝĐƚ ǁŝƚŚ ƉƌŽƉĞƌ ĞdžĞĐƵƚŝŽŶŽĨƚŚĞŝŶǀĞƐƚŵĞŶƚƉƌŽŐƌĂŵ͕ŽƌǁŚŝĐŚĐŽƵůĚ ŝŵƉĂŝƌ ƚŚĞŝƌ ĂďŝůŝƚLJ ƚŽ ŵĂŬĞ ŝŵƉĂƌƚŝĂů ŝŶǀĞƐƚŵĞŶƚ ĚĞĐŝƐŝŽŶƐ͘ ŵƉůŽLJĞĞƐ ĂŶĚ ŝŶǀĞƐƚŵĞŶƚ ŽĨĨŝĐĞƌƐ͕ ŝŶĐůƵĚŝŶŐ ŝŶǀĞƐƚŵĞŶƚ ĂĚǀŝƐŽƌƐ͕ ĂƌĞ ƌĞƋƵŝƌĞĚ ƚŽ ĨŝůĞ ĂŶŶƵĂůĚŝƐĐůŽƐƵƌĞƐƚĂƚĞŵĞŶƚƐĂƐƌĞƋƵŝƌĞĚĨŽƌ͞ƉƵďůŝĐ ŽĨĨŝĐŝĂůƐǁŚŽŵĂŶĂŐĞƉƵďůŝĐŝŶǀĞƐƚŵĞŶƚƐ͟ĂƐĚĞĨŝŶĞĚ ĂŶĚƌĞƋƵŝƌĞĚďLJƚŚĞWŽůŝƚŝĐĂůZĞĨŽƌŵĐƚĂŶĚƌĞůĂƚĞĚ ƌĞŐƵůĂƚŝŽŶƐ͕ ŝŶĐůƵĚŝŶŐ 'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶƐ ϴϭϬϬϬ͕ Ğƚ ƐĞƋ͕͘ ĂŶĚ ƚŚĞ ƌƵůĞƐ͕ ƌĞŐƵůĂƚŝŽŶƐ ĂŶĚ ŐƵŝĚĞůŝŶĞƐ ƉƌŽŵƵůŐĂƚĞĚ ďLJ ĂůŝĨŽƌŶŝĂ͛Ɛ &Ăŝƌ WŽůŝƚŝĐĂů WƌĂĐƚŝĐĞƐŽŵŵŝƐƐŝŽŶ;&WWͿ͘ ϴ͘ϬƵƚŚŽƌŝnjĞĚ&ŝŶĂŶĐŝĂůĞĂůĞƌƐĂŶĚ/ŶƐƚŝƚƵƚŝŽŶƐ &ŽƌĂŶLJƚƌĂŶƐĂĐƚŝŽŶƐĞdžĞĐƵƚĞĚďLJƚŚĞŝƚLJ͕ƚŚĞŝƚLJ͛Ɛ ŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌǁŝůůŵĂŝŶƚĂŝŶĂůŝƐƚŽĨ ƚŚĞ ĨŝŶĂŶĐŝĂů ŝŶƐƚŝƚƵƚŝŽŶƐ ĂŶĚ ďƌŽŬĞƌƐͬĚĞĂůĞƌƐ ĂƵƚŚŽƌŝnjĞĚ ƚŽ ƉƌŽǀŝĚĞ ŝŶǀĞƐƚŵĞŶƚ ĂŶĚ ĚĞƉŽƐŝƚŽƌLJ ƐĞƌǀŝĐĞƐ ĂŶĚ ǁŝůů ƉĞƌĨŽƌŵ ĂŶ ĂŶŶƵĂů ƌĞǀŝĞǁ ŽĨ ƚŚĞ ĨŝŶĂŶĐŝĂů ĐŽŶĚŝƚŝŽŶ ĂŶĚ ƌĞŐŝƐƚƌĂƚŝŽŶƐ ŽĨ ƋƵĂůŝĨŝĞĚ ďŝĚĚĞƌƐ ĂŶĚ ƌĞƋƵŝƌĞ ĂŶŶƵĂů ĂƵĚŝƚĞĚ ĨŝŶĂŶĐŝĂů ƐƚĂƚĞŵĞŶƚƐƚŽďĞŽŶĨŝůĞĨŽƌĞĂĐŚĐŽŵƉĂŶLJ͘dŚĞŝƚLJ ǁŝůůƵƚŝůŝnjĞDŽŽĚLJ͛Ɛ^ĞĐƵƌŝƚŝĞƐŽƌŽƚŚĞƌƐƵĐŚƐĞƌǀŝĐĞƐ ƚŽ ĚĞƚĞƌŵŝŶĞ ĨŝŶĂŶĐŝĂůůLJ ƐŽƵŶĚ ŝŶƐƚŝƚƵƚŝŽŶƐ ǁŝƚŚ ǁŚŝĐŚƚŽĚŽďƵƐŝŶĞƐƐ͘dŚĞŝƚLJƐŚĂůůĂŶŶƵĂůůLJƐĞŶĚĂ ĐŽƉLJŽĨƚŚĞĐƵƌƌĞŶƚ/ŶǀĞƐƚŵĞŶƚWŽůŝĐLJƚŽĂůůĨŝŶĂŶĐŝĂů ŝŶƐƚŝƚƵƚŝŽŶƐ ĂŶĚ ďƌŽŬĞƌƐͬĚĞĂůĞƌƐ ĂƉƉƌŽǀĞĚ ƚŽ ĚŽ ďƵƐŝŶĞƐƐǁŝƚŚƚŚĞŝƚLJ͘ ƐĨĂƌĂƐƉŽƐƐŝďůĞ͕ĂůůŵŽŶĞLJďĞůŽŶŐŝŶŐƚŽ͕ŽƌŝŶƚŚĞ ĐƵƐƚŽĚLJŽĨ͕ĂůŽĐĂůĂŐĞŶĐLJ͕ŝŶĐůƵĚŝŶŐŵŽŶĞLJƉĂŝĚƚŽ ƚŚĞ ŝƚLJ͛Ɛ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ Žƌ ŽƚŚĞƌ ŽĨĨŝĐŝĂůƚŽƉĂLJƚŚĞƉƌŝŶĐŝƉĂů͕ŝŶƚĞƌĞƐƚ͕ŽƌƉĞŶĂůƚŝĞƐŽĨ ďŽŶĚƐ͕ƐŚĂůůďĞĚĞƉŽƐŝƚĞĚĨŽƌƐĂĨĞŬĞĞƉŝŶŐŝŶƐƚĂƚĞŽƌ ŶĂƚŝŽŶĂů ďĂŶŬƐ͕ ƐĂǀŝŶŐƐ ĂƐƐŽĐŝĂƚŝŽŶƐ͕ ĨĞĚĞƌĂů ĂƐƐŽĐŝĂƚŝŽŶƐ͕ ĐƌĞĚŝƚ ƵŶŝŽŶƐ͕ Žƌ ĨĞĚĞƌĂůůLJ ŝŶƐƵƌĞĚ 258 409 ʹͲͳͻ ŝŶĚƵƐƚƌŝĂů ůŽĂŶ ĐŽŵƉĂŶŝĞƐ ŝŶ ƚŚŝƐ ƐƚĂƚĞ ƐĞůĞĐƚĞĚ ďLJ ƚŚĞŝƚLJ͛ƐŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ͖ŽƌŵĂLJďĞ ŝŶǀĞƐƚĞĚŝŶƚŚĞŝŶǀĞƐƚŵĞŶƚƐƐĞƚĨŽƌƚŚŝŶ^ĞĐƚŝŽŶϵ͘Ϭ͘ dŽďĞĞůŝŐŝďůĞƚŽƌĞĐĞŝǀĞůŽĐĂůĂŐĞŶĐLJŵŽŶĞLJ͕ĂďĂŶŬ͕ ƐĂǀŝŶŐƐĂƐƐŽĐŝĂƚŝŽŶ͕ĨĞĚĞƌĂůĂƐƐŽĐŝĂƚŝŽŶ͕ŽƌĨĞĚĞƌĂůůLJ ŝŶƐƵƌĞĚŝŶĚƵƐƚƌŝĂůůŽĂŶĐŽŵƉĂŶLJƐŚĂůůŚĂǀĞƌĞĐĞŝǀĞĚ ĂŶŽǀĞƌĂůůƌĂƚŝŶŐŽĨŶŽƚůĞƐƐƚŚĂŶ͞ƐĂƚŝƐĨĂĐƚŽƌLJ͟ŝŶŝƚƐ ŵŽƐƚ ƌĞĐĞŶƚ ĞǀĂůƵĂƚŝŽŶ ďLJƚŚĞ ĂƉƉƌŽƉƌŝĂƚĞ ĨĞĚĞƌĂů ĨŝŶĂŶĐŝĂůƐƵƉĞƌǀŝƐŽƌLJĂŐĞŶĐLJŽĨŝƚƐƌĞĐŽƌĚŽĨŵĞĞƚŝŶŐ ƚŚĞ ĐƌĞĚŝƚ ŶĞĞĚƐ ŽĨ ĂůŝĨŽƌŶŝĂ͛Ɛ ĐŽŵŵƵŶŝƚŝĞƐ͕ ŝŶĐůƵĚŝŶŐůŽǁͲĂŶĚŵŽĚĞƌĂƚĞͲŝŶĐŽŵĞŶĞŝŐŚďŽƌŚŽŽĚƐ͘ dŽƉƌŽǀŝĚĞĨŽƌƚŚĞŽƉƚŝŵƵŵLJŝĞůĚŝŶƚŚĞŝŶǀĞƐƚŵĞŶƚ ŽĨŝƚLJĨƵŶĚƐ͕ƚŚĞŝƚLJ͛ƐŝŶǀĞƐƚŵĞŶƚƉƌŽĐĞĚƵƌĞƐƐŚĂůů ĞŶĐŽƵƌĂŐĞĐŽŵƉĞƚŝƚŝǀĞďŝĚĚŝŶŐŽŶƚƌĂŶƐĂĐƚŝŽŶƐ͘ŶLJ ƚƌĂŶƐĂĐƚŝŽŶƐ ŶŽƚ ĞdžĞĐƵƚĞĚ ĚŝƌĞĐƚůLJ ǁŝƚŚ ƚŚĞ ŝƐƐƵĞƌ ƐŚĂůůďĞŵĂĚĞǁŝƚŚĂƉƉƌŽǀĞĚďƌŽŬĞƌƐͬĚĞĂůĞƌƐ͘/Ŷ ŽƌĚĞƌƚŽďĞĂƉƉƌŽǀĞĚďLJƚŚĞŝƚLJ͕ƚŚĞďƌŽŬĞƌͬĚĞĂůĞƌ ŵƵƐƚŵĞĞƚƚŚĞĨŽůůŽǁŝŶŐĐƌŝƚĞƌŝĂ͗;ŝͿƚŚĞĚĞĂůĞƌŵƵƐƚ ďĞĂ͞ƉƌŝŵĂƌLJ͟ĚĞĂůĞƌŽƌƌĞŐŝŽŶĂůďƌŽŬĞƌͬĚĞĂůĞƌƚŚĂƚ ƋƵĂůŝĨŝĞƐƵŶĚĞƌ^ĞĐƵƌŝƚŝĞƐĂŶĚ džĐŚĂŶŐĞŽŵŵŝƐƐŝŽŶ ZƵůĞϭϱϯͲϭ;hŶŝĨŽƌŵEĞƚĂƉŝƚĂůZƵůĞͿ͖;ŝŝͿƚŚĞ ďƌŽŬĞƌͬĚĞĂůĞƌ͛Ɛ ŝŶƐƚŝƚƵƚŝŽŶ ŵƵƐƚ ŚĂǀĞ ĂŶ ŽĨĨŝĐĞ ŝŶ ĂůŝĨŽƌŶŝĂ͖ ;ŝŝŝͿ ƚŚĞ ĚĞĂůĞƌ ŵƵƐƚ ďĞ ĞdžƉĞƌŝĞŶĐĞĚ ŝŶ ŝŶƐƚŝƚƵƚŝŽŶĂůƚƌĂĚŝŶŐƉƌĂĐƚŝĐĞƐĂŶĚĨĂŵŝůŝĂƌǁŝƚŚƚŚĞ ĂůŝĨŽƌŶŝĂ 'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ĂƐ ƌĞůĂƚĞĚ ƚŽ ŝŶǀĞƐƚŵĞŶƚƐ ĂƉƉƌŽƉƌŝĂƚĞ ĨŽƌ ƚŚĞ ŝƚLJ͖ ĂŶĚ ;ŝǀͿ Ăůů ŽƚŚĞƌĂƉƉůŝĐĂďůĞĐƌŝƚĞƌŝĂ͕ĂƐŵĂLJďĞĞƐƚĂďůŝƐŚĞĚŝŶƚŚĞ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽĐĞĚƵƌĞƐ͘ ůů ďƌŽŬĞƌƐͬĚĞĂůĞƌƐ ĂŶĚ ĨŝŶĂŶĐŝĂůŝŶƐƚŝƚƵƚŝŽŶƐǁŚŽĚĞƐŝƌĞƚŽďĞĐŽŵĞƋƵĂůŝĨŝĞĚ ďŝĚĚĞƌƐ ĨŽƌ ŝŶǀĞƐƚŵĞŶƚ ƚƌĂŶƐĂĐƚŝŽŶƐŵƵƐƚ ƐƵďŵŝƚ Ă ͞ƌŽŬĞƌͬĞĂůĞƌƉƉůŝĐĂƚŝŽŶ͟ĂŶĚƌĞůĂƚĞĚĚŽĐƵŵĞŶƚƐ ƌĞůĂƚŝǀĞ ƚŽ ĞůŝŐŝďŝůŝƚLJ ŝŶĐůƵĚŝŶŐ Ă ĐƵƌƌĞŶƚ ĂƵĚŝƚĞĚ ĂŶŶƵĂůĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚ͕hϰĨŽƌŵĨŽƌƚŚĞďƌŽŬĞƌ͕ ƉƌŽŽĨŽĨƐƚĂƚĞƌĞŐŝƐƚƌĂƚŝŽŶ͕ƉƌŽŽĨŽĨ&ŝŶĂŶĐŝĂů/ŶĚƵƐƚƌLJ ZĞŐƵůĂƚŽƌLJƵƚŚŽƌŝƚLJ;&/EZͿĐĞƌƚŝĨŝĐĂƚŝŽŶĂŶĚĂ ĐĞƌƚŝĨŝĐĂƚŝŽŶŽĨŚĂǀŝŶŐƌĞĂĚĂŶĚƵŶĚĞƌƐƚŽŽĚƚŚĞŝƚLJ͛Ɛ /ŶǀĞƐƚŵĞŶƚWŽůŝĐLJĂŶĚĂŐƌĞĞŝŶŐƚŽĐŽŵƉůLJǁŝƚŚƚŚĞ /ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ͘ dŚĞ ŝƚLJ͛Ɛ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ƐŚĂůů ĚĞƚĞƌŵŝŶĞ ŝĨ ƚŚĞLJ ĂƌĞ ĂĚĞƋƵĂƚĞůLJ ĐĂƉŝƚĂůŝnjĞĚ ;ŝ͘Ğ͘ ŵŝŶŝŵƵŵ ĐĂƉŝƚĂů ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ΨϭϬ͕ϬϬϬ͕ϬϬϬ ĂŶĚ ĨŝǀĞ LJĞĂƌƐ ŽĨ ŽƉĞƌĂƚŝŽŶͿ͘ /ĨƚŚĞŝƚLJŚĂƐĂŶŝŶǀĞƐƚŵĞŶƚĂĚǀŝƐŽƌ͕ƚŚĞŝŶǀĞƐƚŵĞŶƚ ĂĚǀŝƐŽƌŵĂLJƵƐĞŝƚƐŽǁŶůŝƐƚŽĨĂƵƚŚŽƌŝnjĞĚŝƐƐƵĞƌƐĂŶĚ ďƌŽŬĞƌͬĚĞĂůĞƌƐƚŽĐŽŶĚƵĐƚƚƌĂŶƐĂĐƚŝŽŶƐŽŶďĞŚĂůĨŽĨ ƚŚĞŝƚLJ͘ ϵ͘ϬƵƚŚŽƌŝnjĞĚΘ^ƵŝƚĂďůĞ/ŶǀĞƐƚŵĞŶƚƐ dŚĞŝƚLJŝƐĂƵƚŚŽƌŝnjĞĚďLJĂůŝĨŽƌŶŝĂ'ŽǀĞƌŶŵĞŶƚŽĚĞ ^ĞĐƚŝŽŶϱϯϲϬϬ͕Ğƚ͘ƐĞƋ͕͘ƚŽŝŶǀĞƐƚŝŶƐƉĞĐŝĨŝĐƚLJƉĞƐŽĨ ƐĞĐƵƌŝƚŝĞƐ͘tŚĞƌĞƚŚŝƐƐĞĐƚŝŽŶƐƉĞĐŝĨŝĞƐĂƉĞƌĐĞŶƚĂŐĞ ůŝŵŝƚĂƚŝŽŶ ĨŽƌ Ă ƉĂƌƚŝĐƵůĂƌ ƐĞĐƵƌŝƚLJ ƚLJƉĞ͕ ƚŚĂƚ ƉĞƌĐĞŶƚĂŐĞŝƐĂƉƉůŝĐĂďůĞŽŶůLJŽŶƚŚĞĚĂƚĞŽĨ ƉƵƌĐŚĂƐĞ͘ƌĞĚŝƚĐƌŝƚĞƌŝĂůŝƐƚĞĚŝŶƚŚŝƐƐĞĐƚŝŽŶƌĞĨĞƌƐƚŽ ƚŚĞ ĐƌĞĚŝƚ ƌĂƚŝŶŐ Ăƚ ƚŚĞ ƚŝŵĞ ƚŚĞ ƐĞĐƵƌŝƚLJ ŝƐ ƉƵƌĐŚĂƐĞĚ͘/ĨĂŶŝŶǀĞƐƚŵĞŶƚ͛ƐĐƌĞĚŝƚƌĂƚŝŶŐĨĂůůƐďĞůŽǁ ƚŚĞ ŵŝŶŝŵƵŵ ƌĂƚŝŶŐ ƌĞƋƵŝƌĞĚ Ăƚ ƚŚĞ ƚŝŵĞ ŽĨ ƉƵƌĐŚĂƐĞ͕ ƚŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ǁŝůů ƉĞƌĨŽƌŵĂƚŝŵĞůLJƌĞǀŝĞǁĂŶĚĚĞĐŝĚĞǁŚĞƚŚĞƌƚŽƐĞůů ŽƌŚŽůĚƚŚĞŝŶǀĞƐƚŵĞŶƚ͘ /ŶǀĞƐƚŵĞŶƚƐŶŽƚƐƉĞĐŝĨŝĐĂůůLJůŝƐƚĞĚďĞůŽǁĂƌĞĚĞĞŵĞĚ ŝŶĂƉƉƌŽƉƌŝĂƚĞĂŶĚƉƌŽŚŝďŝƚĞĚ͗ ͘E< Z^͛ WdE ^͘ŵĂdžŝŵƵŵŽĨϰϬйŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ŵĂLJ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ďĂŶŬĞƌƐ͛ ĂĐĐĞƉƚĂŶĐĞƐ͘dŚĞŵĂdžŝŵƵŵŵĂƚƵƌŝƚLJŝƐϭϴϬĚĂLJƐ͘ ůŝŐŝďůĞ ďĂŶŬĞƌƐ͛ ĂĐĐĞƉƚĂŶĐĞƐ ƐŚĂůů ŚĂǀĞ ƚŚĞ ŚŝŐŚĞƐƚƌĂŶŬŝŶŐŽƌƚŚĞŚŝŐŚĞƐƚůĞƚƚĞƌĂŶĚŶƵŵďĞƌ ƌĂƚŝŶŐ ŝŶ Ă ƌĂƚŝŶŐ ĐĂƚĞŐŽƌLJ ĂƐ ƉƌŽǀŝĚĞĚ ďLJ Ă ŶĂƚŝŽŶĂůůLJ ƌĞĐŽŐŶŝnjĞĚ ƐƚĂƚŝƐƚŝĐĂů ƌĂƚŝŶŐ ŽƌŐĂŶŝnjĂƚŝŽŶ;EZ^ZKͿ͘ ͘E 'Kd/> Zd/&/d ^K& WK^/d͘ ŵĂdžŝŵƵŵ ŽĨ ϯϬй ŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ŵĂLJ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ŶĞŐŽƚŝĂďůĞ ĐĞƌƚŝĨŝĐĂƚĞƐ ŽĨ ĚĞƉŽƐŝƚ ;E͛ƐͿ͘dŚĞŵĂdžŝŵƵŵŵĂƚƵƌŝƚLJŽĨĂEŝƐƐƵĞ ƐŚĂůůďĞϱLJĞĂƌƐ͘dŚĞƐĞĂƌĞŝƐƐƵĞĚďLJĐŽŵŵĞƌĐŝĂů ďĂŶŬƐ ĂŶĚ ƚŚƌŝĨƚ ŝŶƐƚŝƚƵƚŝŽŶƐ ĂŐĂŝŶƐƚ ĨƵŶĚƐ ĚĞƉŽƐŝƚĞĚĨŽƌƐƉĞĐŝĨŝĞĚƉĞƌŝŽĚƐŽĨƚŝŵĞĂŶĚĞĂƌŶ ƐƉĞĐŝĨŝĞĚŽƌǀĂƌŝĂďůĞƌĂƚĞƐŽĨŝŶƚĞƌĞƐƚ͘EĞŐŽƚŝĂďůĞ ĐĞƌƚŝĨŝĐĂƚĞƐŽĨĚĞƉŽƐŝƚ;E͛ƐͿĚŝĨĨĞƌĨƌŽŵŽƚŚĞƌ ĐĞƌƚŝĨŝĐĂƚĞƐ ŽĨ ĚĞƉŽƐŝƚ ďLJ ƚŚĞŝƌ ůŝƋƵŝĚŝƚLJ͘ E͛Ɛ ĂƌĞƚƌĂĚĞĚĂĐƚŝǀĞůLJŝŶƐĞĐŽŶĚĂƌLJŵĂƌŬĞƚƐ͘E͛Ɛ ǁŝƚŚŵĂƚƵƌŝƚŝĞƐƵŶĚĞƌŽŶĞLJĞĂƌŵƵƐƚďĞƌĂƚĞĚŝŶ Ă ƌĂƚŝŶŐ ĐĂƚĞŐŽƌLJ ŽĨ ͞Ͳϭ͕͟ ŝƚƐ ĞƋƵŝǀĂůĞŶƚ͕ Žƌ ďĞƚƚĞƌ ďLJ Ă EZ^ZK͘ E͛Ɛ ǁŝƚŚ ŵĂƚƵƌŝƚŝĞƐ ŝŶ ĞdžĐĞƐƐ ŽĨ ŽŶĞ LJĞĂƌ ŵƵƐƚ ďĞ ƌĂƚĞĚ ŝŶ Ă ƌĂƚŝŶŐ ĐĂƚĞŐŽƌLJŽĨ͕͟͞ŝƚƐĞƋƵŝǀĂůĞŶƚŽƌďĞƚƚĞƌďLJĂ EZ^ZK͘ ͘KDD Z/>WW Z͘ŵĂdžŝŵƵŵŽĨϮϱйŽĨƚŚĞ ƉŽƌƚĨŽůŝŽŵĂLJďĞŝŶǀĞƐƚĞĚŝŶĐŽŵŵĞƌĐŝĂůƉĂƉĞƌ͘ dŚĞŵĂdžŝŵƵŵŵĂƚƵƌŝƚLJŝƐϮϳϬĚĂLJƐ͘ŽŵŵĞƌĐŝĂů ƉĂƉĞƌŽĨƉƌŝŵĞƋƵĂůŝƚLJŽĨƚŚĞŚŝŐŚĞƐƚƌĂŶŬŝŶŐŽƌ 259 410 ʹͲͳͻ ŽĨ ƚŚĞ ŚŝŐŚĞƐƚ ůĞƚƚĞƌ ĂŶĚ ŶƵŵďĞƌ ƌĂƚŝŶŐ ĂƐ ƉƌŽǀŝĚĞĚĨŽƌďLJĂEZ^ZK͘dŚĞĞŶƚŝƚLJƚŚĂƚŝƐƐƵĞƐ ƚŚĞ ĐŽŵŵĞƌĐŝĂů ƉĂƉĞƌ ƐŚĂůů ŵĞĞƚ Ăůů ŽĨ ƚŚĞ ĨŽůůŽǁŝŶŐ ĐŽŶĚŝƚŝŽŶƐ ŝŶ ĞŝƚŚĞƌ ƉĂƌĂŐƌĂƉŚ ;ϭͿ Žƌ ƉĂƌĂŐƌĂƉŚ;ϮͿ͗ ϭͿdŚĞĞŶƚŝƚLJŵĞĞƚƐƚŚĞĨŽůůŽǁŝŶŐĐƌŝƚĞƌŝĂ͗ Ă͘/Ɛ ŽƌŐĂŶŝnjĞĚ ĂŶĚ ŽƉĞƌĂƚŝŶŐ ŝŶ ƚŚĞ hŶŝƚĞĚ^ƚĂƚĞƐĂƐĂŐĞŶĞƌĂůĐŽƌƉŽƌĂƚŝŽŶ͘ ď͘,ĂƐ ƚŽƚĂů ĂƐƐĞƚƐ ŝŶ ĞdžĐĞƐƐ ŽĨ ĨŝǀĞ ŚƵŶĚƌĞĚ ŵŝůůŝŽŶ ĚŽůůĂƌƐ ;ΨϱϬϬ͕ϬϬϬ͕ϬϬϬͿ͘ Đ͘,ĂƐĚĞďƚŽƚŚĞƌƚŚĂŶĐŽŵŵĞƌĐŝĂůƉĂƉĞƌ͕ ŝĨĂŶLJ͕ƚŚĂƚŝƐƌĂƚĞĚŝŶĂƌĂƚŝŶŐĐĂƚĞŐŽƌLJ ŽĨ͟͞ŽƌŚŝŐŚĞƌ͕ŽƌƚŚĞĞƋƵŝǀĂůĞŶƚ͕ďLJĂ EZ^ZK͘ ϮͿdŚĞĞŶƚŝƚLJŵĞĞƚƐƚŚĞĨŽůůŽǁŝŶŐĐƌŝƚĞƌŝĂ͗ Ă͘/Ɛ ŽƌŐĂŶŝnjĞĚ ǁŝƚŚŝŶ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ ĂƐĂƐƉĞĐŝĂůƉƵƌƉŽƐĞĐŽƌƉŽƌĂƚŝŽŶ͕ƚƌƵƐƚ͕ ŽƌůŝŵŝƚĞĚůŝĂďŝůŝƚLJĐŽŵƉĂŶLJ͘ ď͘,ĂƐ ƉƌŽŐƌĂŵ ǁŝĚĞ ĐƌĞĚŝƚ ĞŶŚĂŶĐĞŵĞŶƚƐ ŝŶĐůƵĚŝŶŐ͕ ďƵƚ ŶŽƚ ůŝŵŝƚĞĚ ƚŽ͕ ŽǀĞƌ ĐŽůůĂƚĞƌĂůŝnjĂƚŝŽŶ͕ ůĞƚƚĞƌƐŽĨĐƌĞĚŝƚ͕ŽƌƐƵƌĞƚLJďŽŶĚ͘ Đ͘,ĂƐĐŽŵŵĞƌĐŝĂůƉĂƉĞƌƚŚĂƚŝƐƌĂƚĞĚŝŶĂ ƌĂƚŝŶŐĐĂƚĞŐŽƌLJŽĨ͞Ͳϭ͟ŽƌŚŝŐŚĞƌ͕Žƌ ƚŚĞĞƋƵŝǀĂůĞŶƚ͕ďLJĂEZ^ZK͘ ͘KE^ /^^h z d, /dz KZ Ez >K> ' Ez t/d,/E d, ^dd K& >/&KZE/͘ ŽŶĚƐŵƵƐƚŚĂǀĞĂƌĂƚŝŶŐŝŶĂƌĂƚŝŶŐĐĂƚĞŐŽƌLJŽĨ ͕͟͞ŝƚƐĞƋƵŝǀĂůĞŶƚŽƌďĞƚƚĞƌĨƌŽŵĂEZ^ZK͘dŚĞƌĞ ŝƐŶŽůŝŵŝƚŽŶƚŚĞƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞƉŽƌƚĨŽůŝŽƚŚĂƚ ĐĂŶďĞŝŶǀĞƐƚĞĚŝŶƚŚŝƐĐĂƚĞŐŽƌLJ͘ ͘K>/'d/KE^K&d, hE/d ^dd ^dZ ^hZz͘ hŶŝƚĞĚ ^ƚĂƚĞƐ dƌĞĂƐƵƌLJ EŽƚĞƐ͕ ďŽŶĚƐ͕ ďŝůůƐ Žƌ ĐĞƌƚŝĨŝĐĂƚĞƐŽĨŝŶĚĞďƚĞĚŶĞƐƐ͕ŽƌƚŚŽƐĞĨŽƌǁŚŝĐŚ ƚŚĞ ĨĂŝƚŚ ĂŶĚ ĐƌĞĚŝƚ ŽĨ ƚŚĞ hŶŝƚĞĚ ^ƚĂƚĞƐ ĂƌĞ ƉůĞĚŐĞĚ ĨŽƌ ƚŚĞ ƉĂLJŵĞŶƚ ŽĨ ƉƌŝŶĐŝƉĂů ĂŶĚ ŝŶƚĞƌĞƐƚ͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞƉĞƌĐĞŶƚĂŐĞŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ƚŚĂƚ ĐĂŶ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ƚŚŝƐ ĐĂƚĞŐŽƌLJ͘ &͘& Z> ' E/ ^͘ &ĞĚĞƌĂů ĂŐĞŶĐLJ Žƌ hŶŝƚĞĚ ^ƚĂƚĞƐ ŐŽǀĞƌŶŵĞŶƚͲƐƉŽŶƐŽƌĞĚ ĞŶƚĞƌƉƌŝƐĞ ŽďůŝŐĂƚŝŽŶƐ͕ƉĂƌƚŝĐŝƉĂƚŝŽŶƐ͕ŽƌŽƚŚĞƌŝŶƐƚƌƵŵĞŶƚƐ͕ ŝŶĐůƵĚŝŶŐƚŚŽƐĞŝƐƐƵĞĚďLJŽƌĨƵůůLJŐƵĂƌĂŶƚĞĞĚĂƐ ƚŽƉƌŝŶĐŝƉĂůĂŶĚŝŶƚĞƌĞƐƚďLJĨĞĚĞƌĂůĂŐĞŶĐŝĞƐŽƌ hŶŝƚĞĚ ^ƚĂƚĞƐ ŐŽǀĞƌŶŵĞŶƚͲƐƉŽŶƐŽƌĞĚ ĞŶƚĞƌƉƌŝƐĞƐ͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞƉĞƌĐĞŶƚĂŐĞ ŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ƚŚĂƚ ĐĂŶ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ƚŚŝƐ ĐĂƚĞŐŽƌLJ͘ '͘Z WhZ,^ 'Z D Ed͕ ŵĂdžŝŵƵŵ ƚĞƌŵ ϯ ŵŽŶƚŚƐ͘/ŶǀĞƐƚŵĞŶƚƐŝŶƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚƐ ŵĂLJďĞŵĂĚĞ͕ŽŶĂŶLJŝŶǀĞƐƚŵĞŶƚĂƵƚŚŽƌŝnjĞĚŝŶ ƚŚŝƐƐĞĐƚŝŽŶ͕ǁŚĞŶƚŚĞƚĞƌŵŽĨƚŚĞĂŐƌĞĞŵĞŶƚ ĚŽĞƐŶŽƚĞdžĐĞĞĚϯŵŽŶƚŚƐ͘DĂƐƚĞƌZĞƉƵƌĐŚĂƐĞ ŐƌĞĞŵĞŶƚ ŵƵƐƚ ďĞ ƐŝŐŶĞĚ ǁŝƚŚ ƚŚĞ ďĂŶŬ Žƌ ďƌŽŬĞƌͬĚĞĂůĞƌǁŚŽŝƐƐĞůůŝŶŐƚŚĞƐĞĐƵƌŝƚŝĞƐƚŽƚŚĞ ŝƚLJ͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞ ƉŽƌƚĨŽůŝŽƚŚĂƚĐĂŶďĞŝŶǀĞƐƚĞĚŝŶƚŚŝƐĐĂƚĞŐŽƌLJ͘ ,͘Z s Z^ ͲZ WhZ,^ 'Z D Ed^ ;ZĞƋƵŝƌĞƐ ŽƵŶĐŝůĂƉƉƌŽǀĂůĨŽƌĞĂĐŚƚƌĂŶƐĂĐƚŝŽŶͿ͘ZĞǀĞƌƐĞ ƌĞƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚƐ Žƌ ƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚƐŵĂLJďĞƵƚŝůŝnjĞĚŽŶůLJǁŚĞŶĂůůŽĨƚŚĞ ĨŽůůŽǁŝŶŐĐŽŶĚŝƚŝŽŶƐĂƌĞŵĞƚ͗ ϭͿdŚĞƐĞĐƵƌŝƚLJƚŽďĞƐŽůĚŽŶƌĞǀĞƌƐĞ ƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚŽƌƐĞĐƵƌŝƚŝĞƐůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚŚĂƐďĞĞŶŽǁŶĞĚĂŶĚĨƵůůLJƉĂŝĚ ĨŽƌďLJƚŚĞůŽĐĂůĂŐĞŶĐLJĨŽƌĂŵŝŶŝŵƵŵŽĨϯϬ ĚĂLJƐƉƌŝŽƌƚŽƐĂůĞ͘ ϮͿdŚĞ ƚŽƚĂů ŽĨ Ăůů ƌĞǀĞƌƐĞ ƌĞƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚƐ ĂŶĚ ƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚƐŽŶŝŶǀĞƐƚŵĞŶƚƐŽǁŶĞĚďLJƚŚĞ ůŽĐĂů ĂŐĞŶĐLJ ĚŽĞƐ ŶŽƚ ĞdžĐĞĞĚ ϮϬй ŽĨ ƚŚĞ ďĂƐĞǀĂůƵĞŽĨƚŚĞƉŽƌƚĨŽůŝŽ͘ ϯͿdŚĞĂŐƌĞĞŵĞŶƚĚŽĞƐŶŽƚĞdžĐĞĞĚĂƚĞƌŵŽĨ ϵϮ ĚĂLJƐ͕ ƵŶůĞƐƐ ƚŚĞ ĂŐƌĞĞŵĞŶƚ ŝŶĐůƵĚĞƐ Ă ǁƌŝƚƚĞŶ ĐŽĚŝĐŝů ŐƵĂƌĂŶƚĞĞŝŶŐ Ă ŵŝŶŝŵƵŵ ĞĂƌŶŝŶŐ Žƌ ƐƉƌĞĂĚ ĨŽƌ ƚŚĞ ĞŶƚŝƌĞ ƉĞƌŝŽĚ ďĞƚǁĞĞŶ ƚŚĞ ƐĂůĞ ŽĨ Ă ƐĞĐƵƌŝƚLJ ƵƐŝŶŐ Ă ƌĞǀĞƌƐĞƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚŽƌƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚ ĂŶĚ ƚŚĞ ĨŝŶĂů ŵĂƚƵƌŝƚLJ ĚĂƚĞŽĨƚŚĞƐĂŵĞƐĞĐƵƌŝƚLJ ϰͿ&ƵŶĚƐŽďƚĂŝŶĞĚŽƌĨƵŶĚƐǁŝƚŚŝŶƚŚĞƉŽŽůŽĨ ĂŶĞƋƵŝǀĂůĞŶƚĂŵŽƵŶƚƚŽƚŚĂƚŽďƚĂŝŶĞĚĨƌŽŵ ƐĞůůŝŶŐĂƐĞĐƵƌŝƚLJƚŽĂĐŽƵŶƚĞƌƉĂƌƚLJďLJǁĂLJ ŽĨĂƌĞǀĞƌƐĞƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚŽƌ ƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚ͕ ƐŚĂůů ŶŽƚ ďĞ 260 411 ʹͲͳͻ ƵƐĞĚ ƚŽ ƉƵƌĐŚĂƐĞ ĂŶŽƚŚĞƌ ƐĞĐƵƌŝƚLJ ǁŝƚŚ Ă ŵĂƚƵƌŝƚLJůŽŶŐĞƌƚŚĂŶϵϮĚĂLJƐĨƌŽŵƚŚĞŝŶŝƚŝĂů ƐĞƚƚůĞŵĞŶƚĚĂƚĞŽĨƚŚĞƌĞǀĞƌƐĞƌĞƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚŽƌƐĞĐƵƌŝƚŝĞƐůĞŶĚŝŶŐĂŐƌĞĞŵĞŶƚ͕ ƵŶůĞƐƐƚŚĞƌĞǀĞƌƐĞƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚŽƌ ƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚ ŝŶĐůƵĚĞƐ Ă ǁƌŝƚƚĞŶ ĐŽĚŝĐŝů ŐƵĂƌĂŶƚĞĞŝŶŐ Ă ŵŝŶŝŵƵŵ ĞĂƌŶŝŶŐ Žƌ ƐƉƌĞĂĚ ĨŽƌ ƚŚĞ ĞŶƚŝƌĞ ƉĞƌŝŽĚ ďĞƚǁĞĞŶ ƚŚĞ ƐĂůĞ ŽĨ Ă ƐĞĐƵƌŝƚLJ ƵƐŝŶŐ Ă ƌĞǀĞƌƐĞƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚŽƌƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐ ĂŐƌĞĞŵĞŶƚ ĂŶĚ ƚŚĞ ĨŝŶĂů ŵĂƚƵƌŝƚLJ ĚĂƚĞŽĨƚŚĞƐĂŵĞƐĞĐƵƌŝƚLJ͘/ŶǀĞƐƚŵĞŶƚƐŝŶ ƌĞǀĞƌƐĞ ƌĞƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚƐ͕ ƐĞĐƵƌŝƚŝĞƐ ůĞŶĚŝŶŐĂŐƌĞĞŵĞŶƚƐ͕ŽƌƐŝŵŝůĂƌŝŶǀĞƐƚŵĞŶƚƐ ŝŶ ǁŚŝĐŚ ƚŚĞ ůŽĐĂů ĂŐĞŶĐLJ ƐĞůůƐ ƐĞĐƵƌŝƚŝĞƐ ƉƌŝŽƌ ƚŽ ƉƵƌĐŚĂƐĞ ǁŝƚŚ Ă ƐŝŵƵůƚĂŶĞŽƵƐ ĂŐƌĞĞŵĞŶƚƚŽƌĞƉƵƌĐŚĂƐĞƚŚĞƐĞĐƵƌŝƚLJƐŚĂůů ŽŶůLJďĞŵĂĚĞǁŝƚŚƉƌŝŵĂƌLJĚĞĂůĞƌƐŽĨƚŚĞ &ĞĚĞƌĂůZĞƐĞƌǀĞĂŶŬŽĨEĞǁzŽƌŬŽƌǁŝƚŚĂ ŶĂƚŝŽŶĂůůLJŽƌƐƚĂƚĞͲĐŚĂƌƚĞƌĞĚďĂŶŬƚŚĂƚŚĂƐ ŽƌŚĂƐŚĂĚĂƐŝŐŶŝĨŝĐĂŶƚďĂŶŬŝŶŐƌĞůĂƚŝŽŶƐŚŝƉ ǁŝƚŚĂůŽĐĂůĂŐĞŶĐLJ͘ ϱͿ&Žƌ ƉƵƌƉŽƐĞƐ ŽĨ ƚŚŝƐ ƉŽůŝĐLJ͕ ͞ƐŝŐŶŝĨŝĐĂŶƚ ďĂŶŬŝŶŐ ƌĞůĂƚŝŽŶƐŚŝƉ͟ ŵĞĂŶƐ ĂŶLJ ŽĨ ƚŚĞ ĨŽůůŽǁŝŶŐĂĐƚŝǀŝƚŝĞƐŽĨĂďĂŶŬ͗ Ă͘/ŶǀŽůǀĞŵĞŶƚŝŶƚŚĞĐƌĞĂƚŝŽŶ͕ƐĂůĞ͕ ƉƵƌĐŚĂƐĞ͕ Žƌ ƌĞƚŝƌĞŵĞŶƚ ŽĨ Ă ůŽĐĂů ĂŐĞŶĐLJ͛ƐďŽŶĚƐ͕ǁĂƌƌĂŶƚƐ͕ŶŽƚĞƐ͕ŽƌŽƚŚĞƌ ĞǀŝĚĞŶĐĞŽĨŝŶĚĞďƚĞĚŶĞƐƐ͘ ď͘&ŝŶĂŶĐŝŶŐŽĨĂůŽĐĂůĂŐĞŶĐLJ͛ƐĂĐƚŝǀŝƚŝĞƐ͘ Đ͘ĐĐĞƉƚĂŶĐĞŽĨĂůŽĐĂůĂŐĞŶĐLJ͛ƐƐĞĐƵƌŝƚŝĞƐ ŽƌĨƵŶĚƐĂƐĚĞƉŽƐŝƚƐ͘ /͘D /hDͲd ZDKZWKZd EKd ^͘ŵĂdžŝŵƵŵ ŽĨ ϯϬй ŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ŵĂLJ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ŵĞĚŝƵŵͲƚĞƌŵĐŽƌƉŽƌĂƚĞŶŽƚĞƐ͕ǁŝƚŚĂŵĂdžŝŵƵŵ ƌĞŵĂŝŶŝŶŐŵĂƚƵƌŝƚLJŽĨĨŝǀĞLJĞĂƌƐŽƌůĞƐƐ͘EŽƚĞƐ ĞůŝŐŝďůĞĨŽƌŝŶǀĞƐƚŵĞŶƚƐŚĂůůďĞƌĂƚĞĚŝŶĂƌĂƚŝŶŐ ĐĂƚĞŐŽƌLJŽĨ͕͟͞ŝƚƐĞƋƵŝǀĂůĞŶƚŽƌďĞƚƚĞƌďLJĂ EZ^ZK͘ :͘d/D WK^/d^Ͳ Zd/&/d ^K& WK^/d;ŶŽŶͲ ŶĞŐŽƚŝĂďůĞĐĞƌƚŝĨŝĐĂƚĞƐŽĨĚĞƉŽƐŝƚͿ͘dŚĞŵĂdžŝŵƵŵ ŵĂƚƵƌŝƚLJŝƐϯLJĞĂƌƐ͘ĞƌƚŝĨŝĐĂƚĞƐŽĨĚĞƉŽƐŝƚĂƌĞ ƌĞƋƵŝƌĞĚƚŽďĞĐŽůůĂƚĞƌĂůŝnjĞĚĂƐƐƉĞĐŝĨŝĞĚƵŶĚĞƌ 'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶ ϱϯϲϯϬ Ğƚ ƐĞƋ͘ dŚĞ ŝƚLJ͕ Ăƚ ŝƚƐ ĚŝƐĐƌĞƚŝŽŶ͕ ŵĂLJ ǁĂŝǀĞ ƚŚĞ ĐŽůůĂƚĞƌĂůŝnjĂƚŝŽŶ ƌĞƋƵŝƌĞŵĞŶƚƐ ĨŽƌ ĂŶLJ ƉŽƌƚŝŽŶ ƚŚĂƚŝƐĐŽǀĞƌĞĚďLJ&ĞĚĞƌĂůĞƉŽƐŝƚ/ŶƐƵƌĂŶĐĞ ŽƌƉŽƌĂƚŝŽŶ;&/ͿŝŶƐƵƌĂŶĐĞ͘dŚĞŝƚLJƐŚĂůůŚĂǀĞ Ă ƐŝŐŶĞĚ ĂŐƌĞĞŵĞŶƚ ǁŝƚŚ ĂŶLJ ĚĞƉŽƐŝƚŽƌLJ ĂĐĐĞƉƚŝŶŐ ŝƚLJ ĨƵŶĚƐ ƉĞƌ 'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶϱϯϲϰϵ͘EŽĚĞƉŽƐŝƚƐƐŚĂůůďĞŵĂĚĞĂƚĂŶLJ ƚŝŵĞŝŶĐĞƌƚŝĨŝĐĂƚĞƐŽĨĚĞƉŽƐŝƚŝƐƐƵĞĚďLJĂƐƚĂƚĞŽƌ ĨĞĚĞƌĂů ĐƌĞĚŝƚ ƵŶŝŽŶ ŝĨ Ă ŵĞŵďĞƌ ŽĨ ƚŚĞ ŝƚLJ ŽƵŶĐŝůŽƌƚŚĞŚŝĞĨ&ŝŶĂŶĐŝĂůKĨĨŝĐĞƌƐĞƌǀĞƐŽŶ ƚŚĞ ďŽĂƌĚ ŽĨ ĚŝƌĞĐƚŽƌƐ Žƌ ĂŶLJ ĐŽŵŵŝƚƚĞĞ ĂƉƉŽŝŶƚĞĚďLJƚŚĞďŽĂƌĚŽĨĚŝƌĞĐƚŽƌƐŽĨƚŚĞĐƌĞĚŝƚ ƵŶŝŽŶ͘ /Ŷ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ 'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶϱϯϲϯϴ͕ĂŶLJĚĞƉŽƐŝƚƐŚĂůůŶŽƚĞdžĐĞĞĚƚŚĂƚ ƚŽƚĂů ƐŚĂƌĞŚŽůĚĞƌ͛Ɛ ĞƋƵŝƚLJ ŽĨ ĂŶLJ ĚĞƉŽƐŝƚŽƌLJ ďĂŶŬ͕ŶŽƌƐŚĂůůƚŚĞĚĞƉŽƐŝƚĞdžĐĞĞĚƚŚĞƚŽƚĂůŶĞƚ ǁŽƌƚŚŽĨĂŶLJŝŶƐƚŝƚƵƚŝŽŶ͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞ ƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞƉŽƌƚĨŽůŝŽƚŚĂƚĐĂŶďĞŝŶǀĞƐƚĞĚ ŝŶƚŚŝƐĐĂƚĞŐŽƌLJ͘ <͘K>/'d/KE^ K& d, ^dd K& >/&KZE/͘ /ŶĐůƵĚŝŶŐďŽŶĚƐƉĂLJĂďůĞƐŽůĞůLJŽƵƚŽĨƌĞǀĞŶƵĞƐ ĨƌŽŵĂƌĞǀĞŶƵĞƉƌŽĚƵĐŝŶŐƉƌŽƉĞƌƚLJŽǁŶĞĚ͕ ĐŽŶƚƌŽůůĞĚ Žƌ ŽƉĞƌĂƚĞĚ ďLJ ƚŚĞ ƐƚĂƚĞ͕ Žƌ ďLJ Ă ĚĞƉĂƌƚŵĞŶƚ͕ ďŽĂƌĚ͕ ĂŐĞŶĐLJ Žƌ ĂƵƚŚŽƌŝƚLJ ŽĨ ƚŚĞ ƐƚĂƚĞ͘ KďůŝŐĂƚŝŽŶƐ ŵƵƐƚ ďĞ ƌĂƚĞĚ ŝŶ Ă ƌĂƚŝŶŐ ĐĂƚĞŐŽƌLJŽĨ͕͟͞ŝƚƐĞƋƵŝǀĂůĞŶƚŽƌďĞƚƚĞƌďLJĂ EZ^ZK͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞƉĞƌĐĞŶƚĂŐĞŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ƚŚĂƚ ĐĂŶ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ƚŚŝƐ ĐĂƚĞŐŽƌLJ͘ >͘K>/'d/KE^ K& d, Kd, Z ϰϵ ^dd ^͘ /ŶĐůƵĚŝŶŐďŽŶĚƐƉĂLJĂďůĞƐŽůĞůLJŽƵƚŽĨƌĞǀĞŶƵĞƐ ĨƌŽŵĂƌĞǀĞŶƵĞƉƌŽĚƵĐŝŶŐƉƌŽƉĞƌƚLJŽǁŶĞĚ͕ ĐŽŶƚƌŽůůĞĚŽƌŽƉĞƌĂƚĞĚďLJĂŶLJŽĨƚŚĞƐĞƐƚĂƚĞƐ͕Žƌ ďLJĂĚĞƉĂƌƚŵĞŶƚ͕ďŽĂƌĚ͕ĂŐĞŶĐLJŽƌĂƵƚŚŽƌŝƚLJŽĨ ƚŚĞƐƚĂƚĞ͘KďůŝŐĂƚŝŽŶƐŵƵƐƚďĞƌĂƚĞĚŝŶĂƌĂƚŝŶŐ ĐĂƚĞŐŽƌLJŽĨ͕͟͞ŝƚƐĞƋƵŝǀĂůĞŶƚŽƌďĞƚƚĞƌďLJĂ EZ^ZK͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞƉĞƌĐĞŶƚĂŐĞŽĨ ƚŚĞ ƉŽƌƚĨŽůŝŽ ƚŚĂƚ ĐĂŶ ďĞ ŝŶǀĞƐƚĞĚ ŝŶ ƚŚŝƐ ĐĂƚĞŐŽƌLJ͘ D͘DKE zDZ< d&hE^͘ŵĂdžŝŵƵŵŽĨϮϬйŽĨ ƚŚĞƉŽƌƚĨŽůŝŽŵĂLJďĞŝŶǀĞƐƚĞĚŝŶŵŽŶĞLJŵĂƌŬĞƚ ĨƵŶĚƐ͘>ŽĐĂůĂŐĞŶĐŝĞƐŵĂLJŝŶǀĞƐƚŝŶ͞ƐŚĂƌĞƐŽĨ ďĞŶĞĨŝĐŝĂů ŝŶƚĞƌĞƐƚ͟ ŝƐƐƵĞĚ ďLJ ĚŝǀĞƌƐŝĨŝĞĚ ŵĂŶĂŐĞŵĞŶƚ ĐŽŵƉĂŶŝĞƐ ǁŚŝĐŚ ŝŶǀĞƐƚ ŽŶůLJ ŝŶ ĚŝƌĞĐƚŽďůŝŐĂƚŝŽŶƐŝŶh͘^͘dƌĞĂƐƵƌLJďŝůůƐ͕ŶŽƚĞƐĂŶĚ ďŽŶĚƐ͕ĂŶĚƌĞƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚƐĐŽůůĂƚĞƌĂůŝnjĞĚ 261 412 ʹͲͳͻ ǁŝƚŚh͘^͘dƌĞĂƐƵƌŝĞƐǁŝƚŚĂǁĞŝŐŚƚĞĚĂǀĞƌĂŐĞŽĨ ϲϬ ĚĂLJƐ Žƌ ůĞƐƐ͘ dŚĞLJ ŵƵƐƚ ŚĂǀĞ ƚŚĞ ŚŝŐŚĞƐƚ ƌĂƚŝŶŐ ĨƌŽŵ ƚǁŽ EZ^ZK͛Ɛ Žƌ ŚĂǀĞ ƌĞƚĂŝŶĞĚ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ĂĚǀŝƐŽƌ ƌĞŐŝƐƚĞƌĞĚ Žƌ ĞdžĞŵƉƚ ĨƌŽŵ ƌĞŐŝƐƚƌĂƚŝŽŶ ǁŝƚŚ ƚŚĞ ^ĞĐƵƌŝƚŝĞƐ ĂŶĚ džĐŚĂŶŐĞ ŽŵŵŝƐƐŝŽŶ ǁŝƚŚ ŶŽƚ ůĞƐƐ ƚŚĂŶ ĨŝǀĞ LJĞĂƌƐ ŽĨ ĞdžƉĞƌŝĞŶĐĞ ŵĂŶĂŐŝŶŐ ŵŽŶĞLJ ŵĂƌŬĞƚ ŵƵƚƵĂů ĨƵŶĚƐ ĂŶĚ ǁŝƚŚ ĂƐƐĞƚƐ ƵŶĚĞƌ ŵĂŶĂŐĞŵĞŶƚ ŝŶ ĞdžĐĞƐƐ ŽĨ ΨϱϬϬ͕ϬϬϬ͕ϬϬϬ͘ dŚĞ ƉƵƌĐŚĂƐĞ ƉƌŝĐĞ ŽĨ ƚŚĞƐŚĂƌĞƐŵĂLJŶŽƚŝŶĐůƵĚĞĐŽŵŵŝƐƐŝŽŶ͘ E͘^E / 'K KhEdz dZ ^hZ Z͛^ WKK> DKE z&hE͘ůƐŽŬŶŽǁŶĂƐƚŚĞ^ĂŶŝĞŐŽ ŽƵŶƚLJ/ŶǀĞƐƚŵĞŶƚWŽŽů͕ƚŚĞƉŽŽůŝƐĂůŽĐĂů ŐŽǀĞƌŶŵĞŶƚŵŽŶĞLJĨƵŶĚĐƌĞĂƚĞĚƚŽŝŶǀĞƐƚƚŚĞ ĂƐƐĞƚƐŽĨƚŚĞŽƵŶƚLJŽĨ^ĂŶŝĞŐŽĂŶĚŽƚŚĞƌ ƉƵďůŝĐĂŐĞŶĐŝĞƐůŽĐĂƚĞĚǁŝƚŚŝŶƚŚĞŽƵŶƚLJ͘dŚĞ ƚŚƌĞĞƉƌŝŵĂƌLJŽďũĞĐƚŝǀĞƐŽĨƚŚĞŽƵŶƚLJWŽŽůĂƌĞ ƚŽƐĂĨĞŐƵĂƌĚƉƌŝŶĐŝƉĂů͖ƚŽŵĞĞƚůŝƋƵŝĚŝƚLJŶĞĞĚƐŽĨ WŽŽůƉĂƌƚŝĐŝƉĂŶƚƐ͖ĂŶĚƚŽĂĐŚŝĞǀĞĂŶŝŶǀĞƐƚŵĞŶƚ ƌĞƚƵƌŶ ŽŶ ƚŚĞ ĨƵŶĚƐ ǁŝƚŚŝŶ ƚŚĞ ŐƵŝĚĞůŝŶĞƐ ŽĨ ƉƌƵĚĞŶƚ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ͘ /ŶǀĞƐƚŵĞŶƚ ŝŶ ƚŚĞ ŽƵŶƚLJ WŽŽů ŝƐ ŚŝŐŚůLJ ůŝƋƵŝĚ ĂŶĚ ƚŚĞ ŝƚLJ ŵĂLJ ŝŶǀĞƐƚǁŝƚŚŶŽƉŽƌƚĨŽůŝŽƉĞƌĐĞŶƚĂŐĞůŝŵŝƚ͘ K͘d, >K> ' Ez /Es ^dD Ed &hE ;>/&Ϳ͘ >/& ŝƐ Ă ƐƉĞĐŝĂů ĨƵŶĚ ŽĨ ƚŚĞ ĂůŝĨŽƌŶŝĂ ^ƚĂƚĞ dƌĞĂƐƵƌLJƚŚƌŽƵŐŚǁŚŝĐŚĂŶLJůŽĐĂůŐŽǀĞƌŶŵĞŶƚ ŵĂLJƉŽŽůŝŶǀĞƐƚŵĞŶƚƐ͘dŚĞŝƚLJŵĂLJŝŶǀĞƐƚƵƉƚŽ ΨϱϬŵŝůůŝŽŶŝŶƚŚŝƐĨƵŶĚ͘ /ŶǀĞƐƚŵĞŶƚƐŝŶ>/&ĂƌĞ ŚŝŐŚůLJ ůŝƋƵŝĚ ĂŶĚ ŵĂLJ ďĞ ĐŽŶǀĞƌƚĞĚ ƚŽ ĐĂƐŚ ǁŝƚŚŝŶϮϰŚŽƵƌƐ͘ W͘^,Z ^ K& E &//> /Ed Z ^d /^^h z :K/Ed WKt Z^ hd,KZ/dz ;>ŽĐĂů 'ŽǀĞƌŶŵĞŶƚ /ŶǀĞƐƚŵĞŶƚWŽŽůƐ>'/WͿ͘dŚĞƌĞŝƐŶŽůŝŵŝƚŽŶƚŚĞ ƉĞƌĐĞŶƚĂŐĞŽĨƚŚĞƉŽƌƚĨŽůŝŽƚŚĂƚĐĂŶďĞŝŶǀĞƐƚĞĚ ŝŶ ƚŚŝƐ ĐĂƚĞŐŽƌLJ͘ >'/W͛Ɛ ŽƌŐĂŶŝnjĞĚ ƉƵƌƐƵĂŶƚ ƚŽ 'ŽǀĞƌŶŵĞŶƚŽĚĞ^ĞĐƚŝŽŶϲϱϬϵ͘ϳƚŚĂƚŝŶǀĞƐƚƐŝŶ ƚŚĞ ƐĞĐƵƌŝƚŝĞƐ ĂŶĚ ŽďůŝŐĂƚŝŽŶƐ ĂƵƚŚŽƌŝnjĞĚ ŝŶ ƐƵďĚŝǀŝƐŝŽŶƐ;ĂͿƚŽ;ƋͿŽĨĂůŝĨŽƌŶŝĂ'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶ ϱϯϲϬϭ͕ ŝŶĐůƵƐŝǀĞ͘ ĂĐŚ ƐŚĂƌĞ ǁŝůů ƌĞƉƌĞƐĞŶƚĂŶĞƋƵĂůƉƌŽƉŽƌƚŝŽŶĂůŝŶƚĞƌĞƐƚŝŶƚŚĞ ƵŶĚĞƌůLJŝŶŐƉŽŽůŽĨƐĞĐƵƌŝƚŝĞƐŽǁŶĞĚďLJƚŚĞũŽŝŶƚ ƉŽǁĞƌƐ ĂƵƚŚŽƌŝƚLJ͘ dŽ ďĞ ĞůŝŐŝďůĞ ƵŶĚĞƌ ƚŚŝƐ ƐĞĐƚŝŽŶ ƚŚĞ ũŽŝŶƚ ƉŽǁĞƌƐ ĂƵƚŚŽƌŝƚLJ ŝƐƐƵŝŶŐ ƚŚĞ ƐŚĂƌĞƐǁŝůůŚĂǀĞƌĞƚĂŝŶĞĚĂŶŝŶǀĞƐƚŵĞŶƚĂĚǀŝƐĞƌ ƚŚĂƚŵĞĞƚƐĂůůŽĨƚŚĞĨŽůůŽǁŝŶŐĐƌŝƚĞƌŝĂ͗ dŚĞ ĂĚǀŝƐĞƌ ŝƐ 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ĂƌĞƌĞƋƵŝƌĞĚƚŽƐĞĐƵƌĞƚŚĞŝƚLJ͛ƐĚĞƉŽƐŝƚƐďLJƉůĞĚŐŝŶŐ ůĞƚƚĞƌƐŽĨĐƌĞĚŝƚŝƐƐƵĞĚďLJƚŚĞ&ĞĚĞƌĂů,ŽŵĞ>ŽĂŶ ĂŶŬŽĨ^ĂŶ&ƌĂŶĐŝƐĐŽǁŝƚŚĂǀĂůƵĞŽĨϭϬϱйŽĨƚŚĞ ƉƌŝŶĐŝƉĂůĂŶĚĂĐĐƌƵĞĚŝŶƚĞƌĞƐƚ͕ŐŽǀĞƌŶŵĞŶƚƐĞĐƵƌŝƚŝĞƐ ǁŝƚŚĂǀĂůƵĞŽĨϭϭϬйŽĨƉƌŝŶĐŝƉĂůĂŶĚĂĐĐƌƵĞĚ ŝŶƚĞƌĞƐƚŽƌĨŝƌƐƚƚƌƵƐƚĚĞĞĚŵŽƌƚŐĂŐĞŶŽƚĞƐŚĂǀŝŶŐĂ ǀĂůƵĞŽĨϭϱϬйŽĨƚŚĞŝƚLJ͛ƐƚŽƚĂůĚĞƉŽƐŝƚƐ͘ŽůůĂƚĞƌĂů ǁŝůů ďĞ ŚĂŶĚůĞĚ ĂƐ ƌĞƋƵŝƌĞĚ ďLJ ƚŚĞ ĂůŝĨŽƌŶŝĂ 'ŽǀĞƌŶŵĞŶƚŽĚĞ͘dŚĞŝƌĞĐƚŽƌŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ͕ Ăƚ ŚŝƐ Žƌ ŚĞƌ ĚŝƐĐƌĞƚŝŽŶ͕ ŵĂLJ ǁĂŝǀĞ ƚŚĞ ĐŽůůĂƚĞƌĂů ƌĞƋƵŝƌĞŵĞŶƚ ĨŽƌ ĚĞƉŽƐŝƚƐ ƚŚĂƚ ĂƌĞĨƵůůLJŝŶƐƵƌĞĚƵƉƚŽΨϮϱϬ͕ϬϬϬďLJƚŚĞ&ĞĚĞƌĂů ĞƉŽƐŝƚ/ŶƐƵƌĂŶĐĞŽƌƉŽƌĂƚŝŽŶ͘ dŚĞ ŵĂƌŬĞƚ ǀĂůƵĞ ŽĨ ƐĞĐƵƌŝƚŝĞƐ ƚŚĂƚ ƵŶĚĞƌůĂLJ Ă ƌĞƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚ ƐŚĂůů ďĞ ǀĂůƵĞĚ Ăƚ ϭϬϮй Žƌ ŐƌĞĂƚĞƌ ŽĨ ƚŚĞ ĨƵŶĚƐ ďŽƌƌŽǁĞĚ ĂŐĂŝŶƐƚ ƚŚŽƐĞ ƐĞĐƵƌŝƚŝĞƐ ĂŶĚ ƚŚĞ ǀĂůƵĞ ƐŚĂůů ďĞ ĂĚũƵƐƚĞĚ ŶŽ ůĞƐƐ ƚŚĂŶ ƋƵĂƌƚĞƌůLJ͘ ^ŝŶĐĞ ƚŚĞ ŵĂƌŬĞƚ ǀĂůƵĞ ŽĨ ƚŚĞ ƵŶĚĞƌůLJŝŶŐ ƐĞĐƵƌŝƚŝĞƐ ŝƐ ƐƵďũĞĐƚ ƚŽ ĚĂŝůLJ ŵĂƌŬĞƚ ĨůƵĐƚƵĂƚŝŽŶƐ͕ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚƐ ŝŶ ƌĞƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚƐƐŚĂůůďĞŝŶĐŽŵƉůŝĂŶĐĞŝĨƚŚĞǀĂůƵĞŽĨƚŚĞ ƵŶĚĞƌůLJŝŶŐƐĞĐƵƌŝƚŝĞƐŝƐďƌŽƵŐŚƚďĂĐŬƵƉƚŽϭϬϮйŶŽ ůĂƚĞƌ ƚŚĂŶ ƚŚĞ ŶĞdžƚ ďƵƐŝŶĞƐƐ ĚĂLJ͘ ŽůůĂƚĞƌĂů ǁŝůů ĂůǁĂLJƐďĞŚĞůĚďLJĂŶŝŶĚĞƉĞŶĚĞŶƚƚŚŝƌĚƉĂƌƚLJ͘ ĐůĞĂƌůLJŵĂƌŬĞĚĞǀŝĚĞŶĐĞŽĨŽǁŶĞƌƐŚŝƉ;ƐĂĨĞŬĞĞƉŝŶŐ ƌĞĐĞŝƉƚͿŵƵƐƚďĞƐƵƉƉůŝĞĚƚŽƚŚĞŝƚLJĂŶĚƌĞƚĂŝŶĞĚ͘ dŚĞƌŝŐŚƚŽĨĐŽůůĂƚĞƌĂůƐƵďƐƚŝƚƵƚŝŽŶŝƐŐƌĂŶƚĞĚ͘ ϭϮ͘Ϭ^ĂĨĞŬĞĞƉŝŶŐĂŶĚƵƐƚŽĚLJ ůůŝƚLJŝŶǀĞƐƚŵĞŶƚƐƐŚĂůůŝĚĞŶƚŝĨLJƚŚĞŝƚLJŽĨŚƵůĂ sŝƐƚĂĂƐƚŚĞƌĞŐŝƐƚĞƌĞĚŽǁŶĞƌ͕ĂŶĚĂůůŝŶƚĞƌĞƐƚĂŶĚ ƉƌŝŶĐŝƉĂů ƉĂLJŵĞŶƚƐ ĂŶĚ ǁŝƚŚĚƌĂǁĂůƐ ƐŚĂůů ŝŶĚŝĐĂƚĞ ƚŚĞ ŝƚLJŽĨ ŚƵůĂ sŝƐƚĂ ĂƐ ƚŚĞ ƉĂLJĞĞ͘ ůů ƐĞĐƵƌŝƚŝĞƐ ƐŚĂůůďĞƐĂĨĞŬĞƉƚǁŝƚŚƚŚĞŝƚLJŝƚƐĞůĨŽƌǁŝƚŚĂ ƋƵĂůŝĨŝĞĚĨŝŶĂŶĐŝĂůŝŶƐƚŝƚƵƚŝŽŶ͕ĐŽŶƚƌĂĐƚĞĚďLJƚŚĞŝƚLJ ĂƐĂƚŚŝƌĚƉĂƌƚLJ͘ůůĂŐƌĞĞŵĞŶƚƐĂŶĚƐƚĂƚĞŵĞŶƚƐǁŝůů ďĞƐƵďũĞĐƚƚŽƌĞǀŝĞǁĂŶŶƵĂůůLJďLJĞdžƚĞƌŶĂůĂƵĚŝƚŽƌƐŝŶ ĐŽŶũƵŶĐƚŝŽŶǁŝƚŚƚŚĞŝƌĂƵĚŝƚ͘/ŶƚŚĞĞǀĞŶƚƚŚĂƚƚŚĞ ŝƚLJŚĂƐĂĨŝŶĂŶĐŝĂůŝŶƐƚŝƚƵƚŝŽŶŚŽůĚƚŚĞƐĞĐƵƌŝƚŝĞƐ͕Ă ƐĞƉĂƌĂƚĞĐƵƐƚŽĚŝĂůĂŐƌĞĞŵĞŶƚƐŚĂůůďĞƌĞƋƵŝƌĞĚ͘ůů ĚĞůŝǀĞƌĂďůĞ ƐĞĐƵƌŝƚŝĞƐ ƐŚĂůů ďĞ ĂĐƋƵŝƌĞĚ ďLJ ƚŚĞ ƐĂĨĞŬĞĞƉŝŶŐ ŝŶƐƚŝƚƵƚŝŽŶ ŽŶ Ă ͞ĞůŝǀĞƌLJͲsƐͲWĂLJŵĞŶƚ͟ ;sWͿ ďĂƐŝƐ͘ &Žƌ ZĞƉƵƌĐŚĂƐĞ ŐƌĞĞŵĞŶƚƐ͕ ƚŚĞ ƉƵƌĐŚĂƐĞŵĂLJďĞĚĞůŝǀĞƌĞĚďLJŬĞŶƚƌLJ͕ƉŚLJƐŝĐĂů ĚĞůŝǀĞƌLJ Žƌ ďLJ ƚŚŝƌĚͲƉĂƌƚLJ ĐƵƐƚŽĚŝĂů ĂŐƌĞĞŵĞŶƚ ĐŽŶƐŝƐƚĞŶƚǁŝƚŚƚŚĞ'ŽǀĞƌŶŵĞŶƚŽĚĞ͘dŚĞƚƌĂŶƐĨĞƌ ŽĨƐĞĐƵƌŝƚŝĞƐƚŽƚŚĞĐŽƵŶƚĞƌƉĂƌƚLJďĂŶŬ͛ƐĐƵƐƚŽŵĞƌ ŬĞŶƚƌLJĂĐĐŽƵŶƚŵĂLJďĞƵƐĞĚĨŽƌŬĞŶƚƌLJ ĚĞůŝǀĞƌLJ͘ ϭϯ͘ϬŝǀĞƌƐŝĨŝĐĂƚŝŽŶ dŚĞŝƚLJ͛ƐŝŶǀĞƐƚŵĞŶƚƉŽƌƚĨŽůŝŽǁŝůůďĞĚŝǀĞƌƐŝĨŝĞĚƚŽ ĂǀŽŝĚ ŝŶĐƵƌƌŝŶŐ ƵŶƌĞĂƐŽŶĂďůĞ ĂŶĚ ĂǀŽŝĚĂďůĞ ƌŝƐŬƐ ĂƐƐŽĐŝĂƚĞĚǁŝƚŚĐŽŶĐĞŶƚƌĂƚŝŶŐŝŶǀĞƐƚŵĞŶƚƐŝŶƐƉĞĐŝĨŝĐ ƐĞĐƵƌŝƚLJ ƚLJƉĞƐ͕ ŵĂƚƵƌŝƚLJ ƐĞŐŵĞŶƚ͕ Žƌ ŝŶ ŝŶĚŝǀŝĚƵĂů ĨŝŶĂŶĐŝĂů ŝŶƐƚŝƚƵƚŝŽŶƐ͘ EŽ ŵŽƌĞ ƚŚĂŶ ϱй ŽĨ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚƉŽƌƚĨŽůŝŽƐŚĂůůďĞŝŶƐĞĐƵƌŝƚŝĞƐŽĨĂŶLJŽŶĞ ŝƐƐƵĞƌĞdžĐĞƉƚĨŽƌh͘^͘dƌĞĂƐƵƌŝĞƐ͕h͘^͘'ŽǀĞƌŶŵĞŶƚ ŐĞŶĐLJ ŝƐƐƵĞƐ͕ ĂŶĚ ŝŶǀĞƐƚŵĞŶƚ ƉŽŽůƐ ƐƵĐŚ ĂƐ >/&͕ ƚŚĞ^ĂŶŝĞŐŽŽƵŶƚLJWŽŽů͕ŵŽŶĞLJŵĂƌŬĞƚĨƵŶĚƐ͕ĂŶĚ ůŽĐĂůŐŽǀĞƌŶŵĞŶƚŝŶǀĞƐƚŵĞŶƚƉŽŽůƐ;>'/W͛ƐͿ͘ 263 414 ʹͲͳͻ ͘ƌĞĚŝƚƌŝƐŬ͕ĚĞĨŝŶĞĚĂƐƚŚĞƌŝƐŬŽĨůŽƐƐĚƵĞƚŽ ĨĂŝůƵƌĞ ŽĨ ƚŚĞ ŝŶƐƵƌĞƌ ŽĨ Ă ƐĞĐƵƌŝƚLJ͕ ƐŚĂůů ďĞ ŵŝƚŝŐĂƚĞĚďLJŝŶǀĞƐƚŝŶŐŝŶƚŚŽƐĞƐĞĐƵƌŝƚŝĞƐǁŝƚŚĂŶ ͟͞ Žƌ ĂďŽǀĞ ƌĂƚŝŶŐ ĂŶĚ ĂƉƉƌŽǀĞĚ ŝŶ ƚŚĞ /ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ ĂŶĚ ďLJ ĚŝǀĞƌƐŝĨLJŝŶŐ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚƉŽƌƚĨŽůŝŽƐŽƚŚĂƚƚŚĞĨĂŝůƵƌĞŽĨĂŶLJ ŽŶĞŝƐƐƵĞƌǁŽƵůĚŶŽƚƵŶĚƵůLJŚĂƌŵƚŚĞŝƚLJ͛ƐĐĂƐŚ ĨůŽǁ͘ ͘DĂƌŬĞƚƌŝƐŬ͕ĚĞĨŝŶĞĚĂƐƚŚĞƌŝƐŬŽĨŵĂƌŬĞƚǀĂůƵĞ ĨůƵĐƚƵĂƚŝŽŶƐĚƵĞƚŽŽǀĞƌĂůůĐŚĂŶŐĞƐŝŶƚŚĞŐĞŶĞƌĂů ůĞǀĞů ŽĨ ŝŶƚĞƌĞƐƚ ƌĂƚĞƐ͕ ƐŚĂůů ďĞ ŵŝƚŝŐĂƚĞĚ ďLJ ŝŵƉůĞŵĞŶƚŝŶŐ Ă ůŽŶŐͲƚĞƌŵ ŝŶǀĞƐƚŵĞŶƚ ƐƚƌĂƚĞŐLJ͘ /ƚŝƐĞdžƉůŝĐŝƚůLJƌĞĐŽŐŶŝnjĞĚŚĞƌĞŝŶ͕ŚŽǁĞǀĞƌ͕ƚŚĂƚŝŶ Ă ĚŝǀĞƌƐŝĨŝĞĚ ƉŽƌƚĨŽůŝŽ͕ ŽĐĐĂƐŝŽŶĂů ŵĞĂƐƵƌĞĚ ůŽƐƐĞƐ ĂƌĞ ŝŶĞǀŝƚĂďůĞ ĂŶĚ ŵƵƐƚ ďĞ ĐŽŶƐŝĚĞƌĞĚ ǁŝƚŚŝŶƚŚĞĐŽŶƚĞdžƚŽĨŽǀĞƌĂůůŝŶǀĞƐƚŵĞŶƚƌĞƚƵƌŶ͘ dŚĞ ŝƚLJ͛Ɛ ŝŶǀĞƐƚŵĞŶƚ ƉŽƌƚĨŽůŝŽ ǁŝůů ƌĞŵĂŝŶ ƐƵĨĨŝĐŝĞŶƚůLJůŝƋƵŝĚƚŽĞŶĂďůĞƚŚĞŝƚLJƚŽŵĞĞƚĂůů ŽƉĞƌĂƚŝŶŐ ƌĞƋƵŝƌĞŵĞŶƚƐ ǁŚŝĐŚ ŵŝŐŚƚ ďĞ ƌĞĂƐŽŶĂďůLJĂŶƚŝĐŝƉĂƚĞĚ͘ ϭϰ͘ϬDĂdžŝŵƵŵDĂƚƵƌŝƚŝĞƐ dŽƚŚĞĞdžƚĞŶƚƉŽƐƐŝďůĞ͕ƚŚĞŝƚLJǁŝůůĂƚƚĞŵƉƚƚŽŵĂƚĐŚ ŝƚƐ ŝŶǀĞƐƚŵĞŶƚƐ ǁŝƚŚ ĂŶƚŝĐŝƉĂƚĞĚ ĐĂƐŚ ĨůŽǁ ƌĞƋƵŝƌĞŵĞŶƚƐ͘ dŚĞ ŝƚLJ ǁŝůů ŶŽƚ ĚŝƌĞĐƚůLJ ŝŶǀĞƐƚ ŝŶ ƐĞĐƵƌŝƚŝĞƐŵĂƚƵƌŝŶŐŵŽƌĞƚŚĂŶĨŝǀĞ;ϱͿLJĞĂƌƐĨƌŽŵƚŚĞ ĚĂƚĞ ŽĨ ƉƵƌĐŚĂƐĞ͕ ƵŶůĞƐƐ͕ ƚŚĞ ůĞŐŝƐůĂƚŝǀĞ ďŽĚLJ ŚĂƐ ŐƌĂŶƚĞĚĞdžƉƌĞƐƐĂƵƚŚŽƌŝƚLJƚŽŵĂŬĞƚŚĂƚŝŶǀĞƐƚŵĞŶƚ ĞŝƚŚĞƌ ƐƉĞĐŝĨŝĐĂůůLJ͕ Žƌ ĂƐ Ă ƉĂƌƚ ŽĨ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ƉƌŽŐƌĂŵĂƉƉƌŽǀĞĚďLJƚŚĞŝƚLJŽƵŶĐŝůĂƚůĞĂƐƚƚŚƌĞĞ ;ϯͿŵŽŶƚŚƐƉƌŝŽƌƚŽƚŚĞŝŶǀĞƐƚŵĞŶƚ͘ ϭϱ͘Ϭ/ŶƚĞƌŶĂůŽŶƚƌŽů dŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ƐŚĂůů ĞƐƚĂďůŝƐŚ Ă ƐLJƐƚĞŵŽĨŝŶƚĞƌŶĂůĐŽŶƚƌŽůƐĚĞƐŝŐŶĞĚƚŽƉƌĞǀĞŶƚůŽƐƐ ŽĨ ƉƵďůŝĐ ĨƵŶĚƐ ĚƵĞ ƚŽ ĨƌĂƵĚ͕ ĞŵƉůŽLJĞĞ ĞƌƌŽƌ͕ Žƌ ŵŝƐƌĞƉƌĞƐĞŶƚĂƚŝŽŶ ďLJ ƚŚŝƌĚ ƉĂƌƚŝĞƐ͘ EŽ ŝŶǀĞƐƚŵĞŶƚ ƉĞƌƐŽŶŶĞů͕ ŝŶĐůƵĚŝŶŐ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ĂĚǀŝƐŽƌ͕ ŵĂLJ ĞŶŐĂŐĞ ŝŶ ĂŶ ŝŶǀĞƐƚŵĞŶƚ ƚƌĂŶƐĂĐƚŝŽŶ ĞdžĐĞƉƚ ĂƐ ƉƌŽǀŝĚĞĚ ĨŽƌ ƵŶĚĞƌ ƚŚĞ ƚĞƌŵƐ ŽĨ ƚŚŝƐ /ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJĂŶĚƚŚĞƉƌŽĐĞĚƵƌĞĞƐƚĂďůŝƐŚĞĚďLJƚŚĞŝƌĞĐƚŽƌ ŽĨ&ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ͘ dŚĞ ĞdžƚĞƌŶĂů ĂƵĚŝƚŽƌƐ ƐŚĂůů ĂŶŶƵĂůůLJ ƌĞǀŝĞǁ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚƐǁŝƚŚƌĞƐƉĞĐƚƚŽƚŚĞ/ŶǀĞƐƚŵĞŶƚWŽůŝĐLJ͘ dŚŝƐƌĞǀŝĞǁǁŝůůƉƌŽǀŝĚĞŝŶƚĞƌŶĂůĐŽŶƚƌŽůďLJĂƐƐƵƌŝŶŐ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƉŽůŝĐŝĞƐ ĂŶĚ ƉƌŽĐĞĚƵƌĞƐ ĨŽƌ ƚŚĞ ŝŶǀĞƐƚŵĞŶƚƐ ƚŚĂƚ ĂƌĞ ƐĞůĞĐƚĞĚ ĨŽƌ ƚĞƐƚŝŶŐ͘ ĚĚŝƚŝŽŶĂůůLJ͕ ĂĐĐŽƵŶƚ ƌĞĐŽŶĐŝůŝĂƚŝŽŶ ĂŶĚ ǀĞƌŝĨŝĐĂƚŝŽŶ ŽĨŐĞŶĞƌĂůůĞĚŐĞƌďĂůĂŶĐĞƐƌĞůĂƚŝŶŐƚŽƚŚĞƉƵƌĐŚĂƐŝŶŐ Žƌ ŵĂƚƵƌŝŶŐ ŽĨ ŝŶǀĞƐƚŵĞŶƚƐ ĂŶĚ ĂůůŽĐĂƚŝŽŶ ŽĨ ŝŶǀĞƐƚŵĞŶƚƐƚŽĨƵŶĚďĂůĂŶĐĞƐƐŚĂůůďĞƉĞƌĨŽƌŵĞĚďLJ ƚŚĞ &ŝŶĂŶĐĞ ĞƉĂƌƚŵĞŶƚ ĂŶĚ ĂƉƉƌŽǀĞĚ ďLJ ƚŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ͘ dŽ ƉƌŽǀŝĚĞ ĨƵƌƚŚĞƌ ƉƌŽƚĞĐƚŝŽŶŽĨŝƚLJĨƵŶĚƐ͕ǁƌŝƚƚĞŶƉƌŽĐĞĚƵƌĞƐƉƌŽŚŝďŝƚ ƚŚĞ ǁŝƌŝŶŐ ŽĨ ĂŶLJ ŝƚLJ ĨƵŶĚƐ ǁŝƚŚŽƵƚ ƚŚĞ ĂƵƚŚŽƌŝnjĂƚŝŽŶŽĨ Ăƚ ůĞĂƐƚƚǁŽŽĨ ƚŚĞ ĨŽůůŽǁŝŶŐ ĨŽƵƌ ĚĞƐŝŐŶĂƚĞĚŝƚLJƐƚĂĨĨ͗ ϭ͘ŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ Ϯ͘ƐƐŝƐƚĂŶƚŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞ ϯ͘dƌĞĂƐƵƌLJDĂŶĂŐĞƌ ϰ͘&ŝŶĂŶĐĞDĂŶĂŐĞƌ ϭϲ͘ϬWĞƌĨŽƌŵĂŶĐĞ^ƚĂŶĚĂƌĚƐ dŚĞŝŶǀĞƐƚŵĞŶƚƉŽƌƚĨŽůŝŽƐŚĂůůďĞŵĂŶĂŐĞĚƚŽĂƚƚĂŝŶ Ă ŵĂƌŬĞƚͲĂǀĞƌĂŐĞ ƌĂƚĞ ŽĨ ƌĞƚƵƌŶ ƚŚƌŽƵŐŚŽƵƚ ďƵĚŐĞƚĂƌLJĂŶĚĞĐŽŶŽŵŝĐĐLJĐůĞƐ͕ƚĂŬŝŶŐŝŶƚŽĂĐĐŽƵŶƚ ƚŚĞŝƚLJ͛ƐŝŶǀĞƐƚŵĞŶƚƌŝƐŬĐŽŶƐƚƌĂŝŶƚƐĂŶĚĐĂƐŚĨůŽǁ͘ /ŶǀĞƐƚŵĞŶƚ ƌĞƚƵƌŶ ďĞĐŽŵĞƐ Ă ĐŽŶƐŝĚĞƌĂƚŝŽŶ ŽŶůLJ ĂĨƚĞƌ ƚŚĞ ďĂƐŝĐ ƌĞƋƵŝƌĞŵĞŶƚƐ ŽĨ ŝŶǀĞƐƚŵĞŶƚ ƐĂĨĞƚLJ ĂŶĚ ůŝƋƵŝĚŝƚLJ ŚĂǀĞ ďĞĞŶ ŵĞƚ͘ /Ŷ ĞǀĂůƵĂƚŝŶŐ ƚŚĞ ƉĞƌĨŽƌŵĂŶĐĞŽĨƚŚĞŝƚLJ͛ƐƉŽƌƚĨŽůŝŽŝŶĐŽŵƉůLJŝŶŐǁŝƚŚ ƚŚŝƐ ƉŽůŝĐLJ͕ ƚŚĞ ŝƚLJ ƐŚĂůů ĞƐƚĂďůŝƐŚ ĂŶ ĂƉƉƌŽƉƌŝĂƚĞ ƉĞƌĨŽƌŵĂŶĐĞďĞŶĐŚŵĂƌŬĂŶĚĐŽŵƉĂƌĞƚŚĞƌĞƚƵƌŶŽĨ ŝƚƐƉŽƌƚĨŽůŝŽƚŽƚŚĞƌĞƚƵƌŶŽĨƚŚĞďĞŶĐŚŵĂƌŬ͘ ϭϳ͘ϬZĞƉŽƌƚŝŶŐ dŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ƐŚĂůů ƐƵďŵŝƚ Ă ƋƵĂƌƚĞƌůLJŝŶǀĞƐƚŵĞŶƚƌĞƉŽƌƚƚŽƚŚĞŝƚLJŽƵŶĐŝůĂŶĚ ŝƚLJDĂŶĂŐĞƌĨŽůůŽǁŝŶŐƚŚĞĞŶĚŽĨĞĂĐŚƋƵĂƌƚĞƌ͘dŚŝƐ ƌĞƉŽƌƚǁŝůůŝŶĐůƵĚĞƚŚĞĨŽůůŽǁŝŶŐĞůĞŵĞŶƚƐ͗ xdLJƉĞŽĨŝŶǀĞƐƚŵĞŶƚ x/ŶƐƚŝƚƵƚŝŽŶĂůŝƐƐƵĞƌ xWƵƌĐŚĂƐĞĚĂƚĞ xĂƚĞŽĨŵĂƚƵƌŝƚLJ xŵŽƵŶƚŽĨĚĞƉŽƐŝƚŽƌĐŽƐƚŽĨƚŚĞŝŶǀĞƐƚŵĞŶƚ x&ĂĐĞǀĂůƵĞŽĨƚŚĞŝŶǀĞƐƚŵĞŶƚ xƵƌƌĞŶƚ ŵĂƌŬĞƚ ǀĂůƵĞ ŽĨ ƐĞĐƵƌŝƚŝĞƐ ĂŶĚ ƐŽƵƌĐĞŽĨǀĂůƵĂƚŝŽŶ xZĂƚĞŽĨŝŶƚĞƌĞƐƚ x/ŶƚĞƌĞƐƚĞĂƌŶŝŶŐƐ x^ƚĂƚĞŵĞŶƚ ƌĞůĂƚŝŶŐ ƚŚĞ ƌĞƉŽƌƚ ƚŽ ŝƚƐ 264 415 ʹͲͳͻ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƚŚĞ ^ƚĂƚĞŵĞŶƚ ŽĨ /ŶǀĞƐƚŵĞŶƚWŽůŝĐLJŽƌƚŚĞŵĂŶŶĞƌŝŶǁŚŝĐŚ ƚŚĞƉŽƌƚĨŽůŝŽŝƐŶŽƚŝŶĐŽŵƉůŝĂŶĐĞ x^ƚĂƚĞŵĞŶƚ ŽŶ ĂǀĂŝůĂďŝůŝƚLJ ŽĨ ĨƵŶĚƐ ƚŽ ŵĞĞƚ ƚŚĞŶĞdžƚƐŝdžŵŽŶƚŚ͛ƐŽďůŝŐĂƚŝŽŶƐ xDŽŶƚŚůLJ ĂŶĚ LJĞĂƌͲƚŽͲĚĂƚĞ ďƵĚŐĞƚ ĂŵŽƵŶƚƐ ĨŽƌŝŶƚĞƌĞƐƚŝŶĐŽŵĞ xWĞƌĐĞŶƚĂŐĞŽĨƉŽƌƚĨŽůŝŽďLJŝŶǀĞƐƚŵĞŶƚƚLJƉĞ xĂLJƐƚŽŵĂƚƵƌŝƚLJĨŽƌĂůůŝŶǀĞƐƚŵĞŶƚƐ xŽŵƉĂƌĂƚŝǀĞƌĞƉŽƌƚŽŶŵŽŶƚŚůLJŝŶǀĞƐƚŵĞŶƚ ďĂůĂŶĐĞƐΘŝŶƚĞƌĞƐƚLJŝĞůĚƐ xDŽŶƚŚůLJƚƌĂŶƐĂĐƚŝŽŶƐ xŽŵƉĂƌĞ ƉŽƌƚĨŽůŝŽ ƚŽƚĂů ƌĞƚƵƌŶ ƚŽ ŵĂƌŬĞƚ ďĞŶĐŚŵĂƌŬƚŽƚĂůƌĞƚƵƌŶ /Ŷ ĂĚĚŝƚŝŽŶ͕ Ă ĐŽŵŵĞŶƚĂƌLJ ŽŶ ĐĂƉŝƚĂů ŵĂƌŬĞƚƐ ĂŶĚ ĞĐŽŶŽŵŝĐ ĐŽŶĚŝƚŝŽŶƐ ŵĂLJ ďĞ ŝŶĐůƵĚĞĚ ǁŝƚŚ ƚŚĞ ƌĞƉŽƌƚ͘ ϭϴ͘Ϭ/ŶǀĞƐƚŵĞŶƚWŽůŝĐLJZĞǀŝĞǁĂŶĚĚŽƉƚŝŽŶ dŚŝƐ /ŶǀĞƐƚŵĞŶƚ WŽůŝĐLJ ƐŚĂůů ďĞ ƌĞǀŝĞǁĞĚ Ăƚ ůĞĂƐƚ ĂŶŶƵĂůůLJ ďLJ ƚŚĞ ŝƌĞĐƚŽƌ ŽĨ &ŝŶĂŶĐĞͬdƌĞĂƐƵƌĞƌ ƚŽ ĞŶƐƵƌĞŝƚƐĐŽŶƐŝƐƚĞŶĐLJǁŝƚŚƚŚĞŽǀĞƌĂůůŽďũĞĐƚŝǀĞŽĨ ƉƌĞƐĞƌǀĂƚŝŽŶŽĨƉƌŝŶĐŝƉĂů͕ůŝƋƵŝĚŝƚLJ͕ĂŶĚƌĞƚƵƌŶ͕ĂŶĚŝƚƐ ƌĞůĞǀĂŶĐĞƚŽĐƵƌƌĞŶƚůĂǁĂŶĚĨŝŶĂŶĐŝĂůĂŶĚĞĐŽŶŽŵŝĐ ƚƌĞŶĚƐ͘ ĂĐŚ ĨŝƐĐĂů LJĞĂƌ͕ ƚŚĞ &ŝŶĂŶĐĞ ŝƌĞĐƚŽƌ ƐŚĂůů ƉƌŽǀŝĚĞĂĐŽƉLJŽĨƚŚĞŝƚLJ͛ƐĐƵƌƌĞŶƚ/ŶǀĞƐƚŵĞŶƚWŽůŝĐLJ ĂŶĚ 'ƵŝĚĞůŝŶĞƐ ƚŽ ƚŚĞ ŝƚLJ ŽƵŶĐŝů͘ LJ ǀŝƌƚƵĞ ŽĨ Ă ƌĞƐŽůƵƚŝŽŶ ŽĨ ƚŚĞ ŝƚLJ ŽƵŶĐŝů ŽĨ ƚŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ͕ƚŚĞŽƵŶĐŝůƐŚĂůůĂĐŬŶŽǁůĞĚŐĞƚŚĞƌĞĐĞŝƉƚŽĨ ƚŚĞWŽůŝĐLJĨŽƌƚŚĞƌĞƐƉĞĐƚŝǀĞĨŝƐĐĂůLJĞĂƌ͘ ŽƵŶĐŝůWŽůŝĐLJϮϮϬͲϬϭ͕>ĂƐƚƵƉĚĂƚĞĚDĂLJϮϯ͕ϮϬϭϳǀŝĂ ŽƵŶĐŝůZĞƐŽůƵƚŝŽŶϮϬϭϳͲϬϳϴ 265 416 266 417 ʹͲͳͻ 267 418 268 419 ʹͲͳͻ ĂƐĞĚŽŶƚŚĞŵŽƐƚƌĞĐĞŶƚĂƵĚŝƚĞĚĨŝŶĂŶĐŝĂůƐƚĂƚĞŵĞŶƚƐ͕ ǁŚŝĐŚǁĞƌĞĨŽƌƚŚĞLJĞĂƌĞŶĚĞĚ:ƵŶĞϯϬ͕ϮϬϭϳ͕ƚŚĞŝƚLJ ĂŶĚ ƚŚĞ ĨŽƌŵĞƌ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ ;ŐĞŶĐLJͿ ďŽƌƌŽǁĞĚĨƵŶĚƐƚŚƌŽƵŐŚƐĞǀĞƌĂůůŽŶŐͲƚĞƌŵĚĞďƚŝƐƐƵĞƐ ĂŶĚŚĞůĚŽƚŚĞƌŽďůŝŐĂƚŝŽŶƐǁŚŝĐŚĂƌĞƚŽďĞĨƵŶĚĞĚŽǀĞƌ ĂƉĞƌŝŽĚŽĨƚŝŵĞůŽŶŐĞƌƚŚĂŶŽŶĞLJĞĂƌ͕ĂƌĞĐĂƚĞŐŽƌŝnjĞĚ ĂƐĨŽůůŽǁƐ͗ ĞƐĐƌŝƉƚŝŽŶ WƌŝŶĐŝƉĂů KƵƚƐƚĂŶĚŝŶŐ /ŶƚĞƌĞƐƚ KƵƚƐƚĂŶĚŝŶŐ dŽƚĂůĞďƚ KƵƚƐƚĂŶĚŝŶŐ dĂdžůůŽĐĂƚŝŽŶŽŶĚƐ Ϯϵ͕ϯϭϱ͕ϬϬϬΨ ϭϭ͕ϰϯϬ͕ϯϬϬΨ ϰϬ͕ϳϰϱ͕ϯϬϬΨ ĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶ ϭϬϲ͕ϬϮϱ͕ϬϬϬΨ ϯϵ͕ϲϰϭ͕ϭϲϳΨ ϭϰϱ͕ϲϲϲ͕ϭϲϳΨ ŽŶĚWƌĞŵŝƵŵ ϭϮ͕Ϭϱϲ͕ϴϵϳΨ ͲΨ ϭϮ͕Ϭϱϲ͕ϴϵϳΨ ŽŶĚŝƐĐŽƵŶƚ ͲΨ ͲΨ ͲΨ ĂƉŝƚĂů>ĞĂƐĞƐ ϯ͕Ϯϳϵ͕ϳϬϯΨ ϲϴϲ͕ϭϮϳΨ ϯ͕ϵϲϱ͕ϴϯϬΨ EŽƚĞƐͬ>ŽĂŶƐWĂLJĂďůĞ ϯ͕ϴϬϱ͕ϱϴϲΨ ϰϲϯ͕ϯϲϰΨ ϰ͕Ϯϲϴ͕ϵϱϬΨ '^ĞĐƚŝŽŶϭϬϴ>ŽĂŶ ϲ͕ϳϱϳ͕ϬϬϬΨ Ϯ͕ϯϯϵ͕ϭϰϵΨ ϵ͕Ϭϵϲ͕ϭϰϵΨ DŝƐĐĞůůĂŶĞŽƵƐůĂŝŵƐWĂLJĂďůĞ ϮϮ͕ϯϬϱ͕ϳϮϵΨ ͲΨ ϮϮ͕ϯϬϱ͕ϳϮϵΨ ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐ; ŵƉůŽLJĞĞ>ĞĂǀĞͿ ϳ͕ϯϰϰ͕ϳϵϴΨ ͲΨ ϳ͕ϯϰϰ͕ϳϵϴΨ ^ƵďƚŽƚĂů ϭϵϬ͕ϴϴϵ͕ϳϭϯΨ ϱϰ͕ϱϲϬ͕ϭϬϳΨ Ϯϰϱ͕ϰϰϵ͕ϴϮϬΨ ĚǀĂŶĐĞƐĨƌŽŵKƚŚĞƌ&ƵŶĚƐ ϰϳ͕ϵϲϴ͕ϮϵϬΨ ͲΨ ϰϳ͕ϵϲϴ͕ϮϵϬΨ dKd>>KE'd ZD d Ϯϯϴ͕ϴϱϴ͕ϬϬϯΨ ϱϰ͕ϱϲϬ͕ϭϬϳΨ Ϯϵϯ͕ϰϭϴ͕ϭϭϬΨ 269 420 ʹͲͳͻ dŚŝƐ ƐĞĐƚŝŽŶ ĚŝƐĐƵƐƐĞƐ ƚŚĞ ǀĂƌŝŽƵƐ ƚLJƉĞƐ ŽĨ ůŽŶŐͲƚĞƌŵ ĚĞďƚƚŚĂƚƚŚĞŝƚLJŚĂƐŝŶĐƵƌƌĞĚ͘ŽŶĚĨŝŶĂŶĐŝŶŐƐ͕ŶŽƚĞƐ ƉĂLJĂďůĞ͕ĐĂƉŝƚĂůůĞĂƐĞƐĂŶĚĂĚǀĂŶĐĞƐĨƌŽŵŽƚŚĞƌĨƵŶĚƐ ĂƌĞƚŚĞƚƌĂĚŝƚŝŽŶĂůĨŽƌŵƐŽĨůŽŶŐͲƚĞƌŵĚĞďƚƚŚĂƚƚŚĞŝƚLJ ŚĂƐŝŶĐƵƌƌĞĚ͘,ŽǁĞǀĞƌ͕ĂůƐŽĐĂƉƚƵƌĞĚŝŶƚŚŝƐƐĞĐƚŝŽŶĂƌĞ ƉƌŽĨĞƐƐŝŽŶĂů ĞƐƚŝŵĂƚĞƐ ĚĞƌŝǀĞĚ ĨƌŽŵ ĂĐƚƵĂƌŝĂů ƐƚƵĚŝĞƐ ĨŽƌǁŽƌŬĞƌƐĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚŐĞŶĞƌĂůůŝĂďŝůŝƚLJĐůĂŝŵƐ͘ /Ŷ ĂĚĚŝƚŝŽŶ͕ ƚŚĞ &ŝŶĂŶĐĞ ĞƉĂƌƚŵĞŶƚ ƉƌŽǀŝĚĞƐ ĂŶ ĞƐƚŝŵĂƚĞ ŽĨ ƚŚĞ ŝƚLJ͛Ɛ ůŝĂďŝůŝƚLJ ĨŽƌ ĐŽŵƉĞŶƐĂƚĞĚ ĂďƐĞŶĐĞƐĂƐŽĨƚŚĞĞŶĚŽĨĞĂĐŚĨŝƐĐĂůLJĞĂƌ͘dŚĞĨŽůůŽǁŝŶŐ ƐĞĐƚŝŽŶƐĚŝƐĐƵƐƐƚŚĞĚĞƚĂŝůƐŽĨƚŚĞŝƚLJ͛ƐůŽŶŐͲƚĞƌŵĚĞďƚ͘ dĂdžůůŽĐĂƚŝŽŶŽŶĚƐ;ΨϮϵ͘ϯŵŝůůŝŽŶͿ dĂdžůůŽĐĂƚŝŽŶŽŶĚƐ;d^ͿĂƌĞŝƐƐƵĞĚďLJƚŚĞŐĞŶĐLJ ĂŶĚ ƵƚŝůŝnjĞ ƚĂdž ŝŶĐƌĞŵĞŶƚ ƌĞǀĞŶƵĞ ĨŽƌ ĚĞďƚ ƐĞƌǀŝĐĞ͘ dŚĞϮϬϭϲdĂdžůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐǁĞƌĞŝƐƐƵĞĚ ƚŽ ƌĞĨƵŶĚ ƚŚĞ ϮϬϬϲ ^ĞŶŝŽƌ dĂdž ůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ͕^ĞƌŝĞƐ͕ƚŚĞϮϬϬϲ^ƵďŽƌĚŝŶĂƚĞdĂdžůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ͕^ĞƌŝĞƐĂŶĚƚŚĞϮϬϬϴdĂdžůůŽĐĂƚŝŽŶ ZĞĨƵŶĚŝŶŐŽŶĚƐ͘ ĞƌƚŝĨŝĐĂƚĞƐŽĨWĂƌƚŝĐŝƉĂƚŝŽŶ;ΨϭϬϲ͘ϬŵŝůůŝŽŶͿ ƐŽĨ:ƵŶĞϯϬ͕ϮϬϭϳ͕ƚŚĞŝƚLJĐƵƌƌĞŶƚůLJŚĂƐĨŽƵƌ ŽƵƚƐƚĂŶĚŝŶŐ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ͘ /Ŷ &ĞďƌƵĂƌLJ ϮϬϭϰ͕ƚŚĞĂƵƚŚŽƌŝƚLJŝƐƐƵĞĚƚŚĞϮϬϭϰKWƚŽƌĞĨƵŶĚƚŚĞ ϮϬϬϮKW;WŽůŝĐĞ&ĂĐŝůŝƚLJWƌŽũĞĐƚͿ͕ĨƵŶĚĂƌĞƐĞƌǀĞĨƵŶĚ͕ ĂŶĚ ƉĂLJ ƚŚĞ ĐŽƐƚƐ ŝŶĐƵƌƌĞĚ ŝŶ ĐŽŶŶĞĐƚŝŽŶ ǁŝƚŚ ƚŚĞ ĞdžĞĐƵƚŝŽŶĂŶĚĚĞůŝǀĞƌLJŽĨƚŚĞĞƌƚŝĨŝĐĂƚĞƐ͘/Ŷ^ĞƉƚĞŵďĞƌ ϮϬϭϱ͕ƚŚĞĂƵƚŚŽƌŝƚLJŝƐƐƵĞĚƚŚĞϮϬϭϱKWƚŽƌĞĨƵŶĚƚŚĞ ϮϬϬϰKW;ŝǀŝĐĞŶƚĞƌWƌŽũĞĐƚWŚĂƐĞ/ͿĂŶĚƉĂƌƚŝĂůůLJ ƌĞĨƵŶĚ ƚŚĞ ϮϬϬϲ KW ;ŝǀŝĐ ĞŶƚĞƌ WƌŽũĞĐƚ WŚĂƐĞ //Ϳ͕ ĨƵŶĚ Ă ƌĞƐĞƌǀĞ ĨƵŶĚ͕ ĂŶĚ ƉĂLJ ƚŚĞ ĐŽƐƚƐ ŝŶĐƵƌƌĞĚ ŝŶ ĐŽŶŶĞĐƚŝŽŶ ǁŝƚŚ ƚŚĞ ĞdžĞĐƵƚŝŽŶ ĂŶĚ ĚĞůŝǀĞƌLJ ŽĨ ƚŚĞ ĞƌƚŝĨŝĐĂƚĞƐ͘/Ŷ:ƵůLJϮϬϭϲ͕ƚŚĞĂƵƚŚŽƌŝƚLJŝƐƐƵĞĚƚŚĞϮϬϭϲ KWƚŽƌĞĨƵŶĚƚŚĞƌĞŵĂŝŶŝŶŐϮϬϬϲKW;ŝǀŝĐĞŶƚĞƌ WƌŽũĞĐƚWŚĂƐĞ//Ϳ͕ĨƵŶĚĂƌĞƐĞƌǀĞĨƵŶĚĂŶĚƚŽƉĂLJƚŚĞ ĐŽƐƚƐ ŝŶĐƵƌƌĞĚ ŝŶ ĐŽŶŶĞĐƚŝŽŶ ǁŝƚŚ ƚŚĞ ĞdžĞĐƵƚŝŽŶ ĂŶĚ ĚĞůŝǀĞƌLJŽĨƚŚĞĞƌƚŝĨŝĐĂƚĞƐ͘/Ŷ:ƵůLJϮϬϭϲ͕ƚŚĞĂƵƚŚŽƌŝƚLJ ŝƐƐƵĞĚ ƚŚĞ ϮϬϭϲ >ĞĂƐĞ ZĞǀĞŶƵĞ ZĞĨƵŶĚŝŶŐ ŽŶĚƐ ƚŽ ƌĞĨƵŶĚ ƚŚĞ ϮϬϭϬ KW ;ĂƉŝƚĂů &ĂĐŝůŝƚŝĞƐ ZĞĨƵŶĚŝŶŐ WƌŽũĞĐƚƐͿĂŶĚƚŽĨƵŶĚĂƌĞƐĞƌǀĞĨƵŶĚ͘ ŽŶĚWƌĞŵŝƵŵ;ΨϭϮ͘ϭŵŝůůŝŽŶͿ dŚĞƉƌĞŵŝƵŵŝƐĐŽŵƉŽƐĞĚŽĨĨŝǀĞďŽŶĚŝƐƐƵĂŶĐĞƐ͘KŶĞ ƉƌĞŵŝƵŵŝƐŝŶĐŽŶŶĞĐƚŝŽŶǁŝƚŚƚŚĞϮϬϭϰKWƌĞĨƵŶĚŝŶŐ ďŽŶĚƐ͘ dŚĞ ŽƌŝŐŝŶĂů ĂŵŽƵŶƚ ŽĨ ƚŚĞ ƉƌĞŵŝƵŵ ŝƐ Ψϯ͕ϱϯϳ͕ϭϭϭĂŶĚǁŝůůďĞĂŵŽƌƚŝnjĞĚŽǀĞƌƚŚĞůŝĨĞŽĨƚŚĞ ďŽŶĚƐ͘dŚĞƐĞĐŽŶĚƉƌĞŵŝƵŵŝƐƌĞůĂƚĞĚƚŽƚŚĞϮϬϭϱKW ƌĞĨƵŶĚŝŶŐďŽŶĚƐ͘dŚĞŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞƉƌĞŵŝƵŵŝƐ ΨϮ͕ϮϲϮ͕ϰϵϯĂŶĚǁŝůůďĞĂŵŽƌƚŝnjĞĚŽǀĞƌƚŚĞůŝĨĞŽĨƚŚĞ ďŽŶĚƐ͘dŚĞƚŚŝƌĚƉƌĞŵŝƵŵŝƐƌĞůĂƚĞĚƚŽƚŚĞϮϬϭϲKW ƌĞĨƵŶĚŝŶŐďŽŶĚƐ͘dŚĞŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞƉƌĞŵŝƵŵŝƐ Ψϯϭϵ͕ϲϱϮ ĂŶĚ ǁŝůů ďĞ ĂŵŽƌƚŝnjĞĚ ŽǀĞƌ ƚŚĞ ůŝĨĞ ŽĨ ƚŚĞ ďŽŶĚƐ͘dŚĞĨŽƵƌƚŚƉƌĞŵŝƵŵŝƐƌĞůĂƚĞĚƚŽƚŚĞϮϬϭϲ>ZZ͘ dŚĞŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞƉƌĞŵŝƵŵŝƐΨϮ͕ϱϭϲ͕ϲϮϭĂŶĚ ǁŝůůďĞĂŵŽƌƚŝnjĞĚŽǀĞƌƚŚĞůŝĨĞŽĨƚŚĞďŽŶĚƐ͘dŚĞĨŝĨƚŚ ƉƌĞŵŝƵŵ ŝƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ϮϬϭϲ dZƐ͘ dŚĞ ŽƌŝŐŝŶĂů ĂŵŽƵŶƚ ŽĨ ƚŚĞ ƉƌĞŵŝƵŵ ŝƐ Ψϰ͕ϲϴϳ͕ϳϵϵ ĂŶĚ ǁŝůů ďĞ ĂŵŽƌƚŝnjĞĚŽǀĞƌƚŚĞůŝĨĞŽĨƚŚĞďŽŶĚƐ͘ ĂƉŝƚĂů>ĞĂƐĞƐ;Ψϯ͘ϯŵŝůůŝŽŶͿ /Ŷ:ƵůLJϮϬϭϯ͕ƚŚĞŝƚLJŽƵŶĐŝůĂƵƚŚŽƌŝnjĞĚĂϭϲLJĞĂƌůĞĂƐĞ ƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚ ǁŝƚŚ ĂŶĐ ŽĨ ŵĞƌŝĐĂ ƚŽ ĨƵŶĚ ǀĂƌŝŽƵƐ ƐŽůĂƌ ĞŶĞƌŐLJ ƉƌŽũĞĐƚƐ ĨŽƌ ŝƚLJ ĨĂĐŝůŝƚŝĞƐ͘ dŚĞ ŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞůŽĂŶǁĂƐΨϮ͕ϭϮϭ͕ϱϬϬĂŶĚǁŝůůďĞ ƌĞƉĂŝĚƚŚƌŽƵŐŚĨƵƚƵƌĞĞŶĞƌŐLJƐĂǀŝŶŐƐ͘ /Ŷ^ĞƉƚĞŵďĞƌϮϬϭϯ͕ƚŚĞŝƚLJĞŶƚĞƌĞĚŝŶƚŽĂůĞĂƐĞ ƉƵƌĐŚĂƐĞ ĂŐƌĞĞŵĞŶƚ ǁŝƚŚ KƐŚ <ŽƐŚ ĂƉŝƚĂů ĨŽƌ ƚŚĞ ĂĐƋƵŝƐŝƚŝŽŶŽĨĂWŝĞƌĐĞƌƌŽǁyddƌŝƉůĞŽŵďŝŶĂƚŝŽŶ WƵŵƉĞƌ&ŝƌĞ ŶŐŝŶĞ͘dŚĞŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞůŽĂŶ ǁĂƐΨϱϳϴ͕ϮϮϰ͘ /ŶDĂƌĐŚϮϬϭϱ͕ƚŚĞŝƚLJĞŶƚĞƌĞĚŝŶƚŽĂůĞĂƐĞĂŐƌĞĞŵĞŶƚ ǁŝƚŚDĂƌůŝŶ>ĞĂƐŝŶŐŽƌƉŽƌĂƚŝŽŶĨŽƌƚŚĞĂĐƋƵŝƐŝƚŝŽŶŽĨ DŽďŝůĞ ĂƚĂ ŽŵƉƵƚĞƌƐ͘ dŚĞ ŽƌŝŐŝŶĂů ĂŵŽƵŶƚ ŽĨ ƚŚĞ ůŽĂŶǁĂƐΨϯϳϳ͕ϰϴϳ͘ /ŶEŽǀĞŵďĞƌϮϬϭϱ͕ƚŚĞŝƚLJĞŶƚĞƌĞĚŝŶƚŽĂĐĂƉŝƚĂůůĞĂƐĞ ĂŐƌĞĞŵĞŶƚǁŝƚŚWE ƋƵŝƉŵĞŶƚ&ŝŶĂŶĐĞĨŽƌƚŚĞ ĂĐƋƵŝƐŝƚŝŽŶŽĨƚǁŽWŝĞƌĐĞƌƌŽǁyddƌŝƉďůĞŽŵďŝŶĂƚŝŽŶ WƵŵƉĞƌͬ&ŝƌĞ ŶŐŝŶĞƐ͘dŚĞŽƌŝŐŝŶĂůĂŵŽƵŶƚŽĨƚŚĞůĞĂƐĞ ŝƐΨϭ͕Ϯϴϱ͕Ϭϱϯ͘ EŽƚĞƐͬ>ŽĂŶƐWĂLJĂďůĞ;Ψϯ͘ϴŵŝůůŝŽŶͿ /Ŷ ^ĞƉƚĞŵďĞƌ ϮϬϬϳ͕ ƚŚĞ ŝƚLJ ŽƵŶĐŝů ĂƵƚŚŽƌŝnjĞĚ ƚŚĞ ŝƚLJ͛ƐƉĂƌƚŝĐŝƉĂƚŝŽŶŝŶƚŚĞĂůŝĨŽƌŶŝĂ ŶĞƌŐLJŽŵŵŝƐƐŝŽŶ ĂŶĚ ^ĂŶ ŝĞŐŽ 'ĂƐ ĂŶĚ ůĞĐƚƌŝĐ KŶͲŝůů &ŝŶĂŶĐŝŶŐ ƉƌŽŐƌĂŵ͘ dŚĞ ůŽĂŶƐ ǁĞƌĞ ƚŽ ďƌŝĚŐĞ ƚŚĞ ĨŝŶĂŶĐŝĂů ŐĂƉ ďĞƚǁĞĞŶĞŶĞƌŐLJĐŽŶƐĞƌǀĂƚŝŽŶƉƌŽũĞĐƚĐĂƉŝƚĂůĐŽƐƚƐĂŶĚ ĂǀĂŝůĂďůĞ ƌĞďĂƚĞƐ ĨŽƌĞŶĞƌŐLJ ĐŽŶƐĞƌǀĂƚŝŽŶ ĞƋƵŝƉŵĞŶƚ͘ dŚĞŽƌŝŐŝŶĂůůŽĂŶĂŵŽƵŶƚǁĂƐΨϲϲϱ͕ϴϴϰĨŽƌƚŚĞKŶͲŝůů &ŝŶĂŶĐŝŶŐƉƌŽŐƌĂŵ͘/ŶĨŝƐĐĂůLJĞĂƌϮϬϭϮĂĚĚŝƚŝŽŶĂůůŽĂŶƐ ǁĞƌĞĞŶƚĞƌĞĚŝŶƚŽǁŝƚŚƚŚĞĂůŝĨŽƌŶŝĂ ŶĞƌŐLJ ŽŵŵŝƐƐŝŽŶ;Ψϯ͘ϳŵŝůůŝŽŶͿĂŶĚ^ĂŶŝĞŐŽ'ĂƐΘ ůĞĐƚƌŝĐ KŶͲŝůů&ŝŶĂŶĐŝŶŐWƌŽŐƌĂŵ;ΨϮϱϲ͕ϯϬϮͿ͘ /Ŷ ĞĐĞŵďĞƌ ϮϬϭϮ͕ ƚŚĞ ŝƚLJ ĞŶƚĞƌĞĚ ŝŶƚŽ Ă ůĞĂƐĞ ƉƵƌĐŚĂƐĞĂŐƌĞĞŵĞŶƚǁŝƚŚĂŶŬŽĨŵĞƌŝĐĂƚŽƉƵƌĐŚĂƐĞ ĐĞƌƚĂŝŶĞŶĞƌŐLJĐŽŶƐĞƌǀĂƚŝŽŶĞƋƵŝƉŵĞŶƚ͘dŚĞĂŐƌĞĞŵĞŶƚ 270 421 ʹͲͳͻ ǁŽƵůĚďƌŝĚŐĞƚŚĞĨŝŶĂŶĐŝĂůŐĂƉďĞƚǁĞĞŶƚŚĞDƵŶŝĐŝƉĂů ^ƚƌĞĞƚůŝŐŚƚ ZĞƚƌŽĨŝƚ WƌŽũĞĐƚ ĐĂƉŝƚĂů ĐŽƐƚƐ ĂŶĚ ƚŚĞ ĂǀĂŝůĂďůĞ ƌĞďĂƚĞƐ ĨŽƌĞŶĞƌŐLJ ĐŽŶƐĞƌǀĂƚŝŽŶ ĞƋƵŝƉŵĞŶƚ͘ Ɛ ŽĨ :ƵŶĞ ϯϬ͕ ϮϬϭϳ ƚŚĞ ŽƵƚƐƚĂŶĚŝŶŐ ďĂůĂŶĐĞ ŝƐ Ψϭ͕ϰϱϬ͕Ϭϯϰ͘ '^ĞĐƚŝŽŶϭϬϴ>ŽĂŶ;Ψϲ͘ϴŵŝůůŝŽŶͿ dŚĞ ŝƚLJ ĞŶƚĞƌĞĚ ŝŶƚŽ Ă ĐŽŶƚƌĂĐƚ ĨŽƌ >ŽĂŶ 'ƵĂƌĂŶƚĞĞ ƐƐŝƐƚĂŶĐĞǁŝƚŚƚŚĞh͘^͘ĞƉĂƌƚŵĞŶƚŽĨ,ŽƵƐŝŶŐĂŶĚ hƌďĂŶĞǀĞůŽƉŵĞŶƚ;,hͿĂƐƉĂƌƚŽĨƚŚĞ^ĞĐƚŝŽŶϭϬϴ >ŽĂŶ WƌŽŐƌĂŵ ŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ Ψϵ͕ϱϬϬ͕ϬϬϬ ŝŶ :ƵŶĞ ϮϬϬϴ͘dŚĞ^ĞĐƚŝŽŶϭϬϴ>ŽĂŶŝƐĂŶ͞ĂĚǀĂŶĐĞ͟ŽĨĨƵƚƵƌĞ 'ĞŶƚŝƚůĞŵĞŶƚĨƵŶĚƐĂŶĚĂƐƐƵĐŚŝƐƌĞƉĂŝĚǁŝƚŚĂ ƉŽƌƚŝŽŶ ŽĨ ƚŚĞ ŝƚLJ͛Ɛ ĂŶŶƵĂů ĞŶƚŝƚůĞŵĞŶƚ͘ WƌŽĐĞĞĚƐ ŽĨ ƚŚĞ ůŽĂŶ ǁŝůů ďĞ ƵƐĞĚ ƚŽ ĨƵŶĚ ŵƵůƚŝƉůĞ ĐĂƉŝƚĂů ŝŵƉƌŽǀĞŵĞŶƚƉƌŽũĞĐƚƐ͘ĞďƚƐĞƌǀŝĐĞƉĂLJŵĞŶƚƐǁŝůůďĞ ŵĂĚĞǁŝƚŚĨƵƚƵƌĞ'ĞŶƚŝƚůĞŵĞŶƚƐĨŽƌϮϬLJĞĂƌƐ͘ DŝƐĐĞůůĂŶĞŽƵƐůĂŝŵƐWĂLJĂďůĞ;ΨϮϮ͘ϯŵŝůůŝŽŶͿ dŚĞ DŝƐĐĞůůĂŶĞŽƵƐ ůĂŝŵƐ WĂLJĂďůĞ ƌĞƉƌĞƐĞŶƚƐ ƚŚĞ ƉƌŽďĂďůĞĂŵŽƵŶƚŽĨůŽƐƐĂƐĞƐƚŝŵĂƚĞĚďLJůĞŐĂůĐŽƵŶƐĞů ĂŶĚ ƌŝƐŬ ŵĂŶĂŐĞŵĞŶƚ ƐƚĂĨĨ ĚƵĞ ƚŽ ǁŽƌŬĞƌ͛Ɛ ĐŽŵƉĞŶƐĂƚŝŽŶĂŶĚŐĞŶĞƌĂůůŝĂďŝůŝƚLJĐůĂŝŵƐĨŝůĞĚĂŐĂŝŶƐƚ ƚŚĞŝƚLJ͘ ŽŵƉĞŶƐĂƚĞĚďƐĞŶĐĞƐ;Ψϳ͘ϯŵŝůůŝŽŶͿ dŚĞ ŽďůŝŐĂƚŝŽŶ ĨŽƌ ŽŵƉĞŶƐĂƚĞĚ ďƐĞŶĐĞƐ ƌĞƉƌĞƐĞŶƚƐ ƚŚĞĐƵƌƌĞŶƚĚŽůůĂƌǀĂůƵĞŽĨĂĐĐƵŵƵůĂƚĞĚůĞĂǀĞďĂůĂŶĐĞƐ͕ ƉƌŝŵĂƌŝůLJ ǀĂĐĂƚŝŽŶ ůĞĂǀĞ͕ ĨŽƌ ĞŵƉůŽLJĞĞƐ ƚŚĂƚ ǁŽƵůĚ ŚĂǀĞƚŽďĞƉĂŝĚŽĨĨŝĨĂůůƉĞƌŵĂŶĞŶƚĞŵƉůŽLJĞĞƐǁĞƌĞ ƚĞƌŵŝŶĂƚĞĚĂƐŽĨ:ƵŶĞϯϬ͕ϮϬϭϳ͘ ĚǀĂŶĐĞƐ&ƌŽŵKƚŚĞƌ&ƵŶĚƐ;Ψϰϴ͘ϬŵŝůůŝŽŶͿ dŚĞ^ƵĐĐĞƐƐŽƌŐĞŶĐLJŚĂƐĞŶƚĞƌĞĚŝŶƚŽƌĞŝŵďƵƌƐĞŵĞŶƚ ĂŐƌĞĞŵĞŶƚƐǁŝƚŚƚŚĞŝƚLJƚŽƌĞŝŵďƵƌƐĞƚŚĞŝƚLJĨŽƌ ĐĞƌƚĂŝŶůĞĂƐĞƉĂLJŵĞŶƚƐŵĂĚĞďLJƚŚĞŝƚLJƵŶĚĞƌǀĂƌŝŽƵƐ ůĞĂƐĞĂŐƌĞĞŵĞŶƚƐ͘dŚĞďĂůĂŶĐĞĂƐŽĨ:ƵŶĞϯϬ͕ϮϬϭϳ͕ǁĂƐ Ψϵ͘ϲŵŝůůŝŽŶ ŝƚLJŽƵŶĐŝůĂƵƚŚŽƌŝnjĞĚůŽĂŶƐƚŽƚŚĞWƵďůŝĐ&ĂĐŝůŝƚŝĞƐ/& ŝŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ Ψϭ͕ϱϮϴ͕ϵϲϵ ƚŽ ŚĞůƉ ĨƵŶĚ ƚŚĞ ŝǀŝĐ ĞŶƚĞƌ ĞdžƉĂŶƐŝŽŶ͘ dŚĞ ůŽĂŶ ǁŝůů ďĞ ƌĞƉĂŝĚ ĂƐ ĨƵŶĚƐ ďĞĐŽŵĞĂǀĂŝůĂďůĞ͕ƚŚƌŽƵŐŚƚŚĞƉĂLJŵĞŶƚŽĨ/&ĨĞĞƐďLJ ĚĞǀĞůŽƉĞƌƐ͘ dŚĞ ďĂůĂŶĐĞ ǁĂƐ Ψϭ͕ϰϴϵ͕ϵϵϱ Ăƚ :ƵŶĞ ϯϬ͕ ϮϬϭϳ͘ /Ŷ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ŽƵŶĐŝů WŽůŝĐLJ EŽ͘ ϮϮϬͲϬϲ͕ ĂƉƉƌŽǀĞĚǀŝĂZĞƐŽůƵƚŝŽŶϮϬϭϱͲϬϮϴ͕ƚŚĞĨŝŶĂŶĐŝŶŐĐŽƐƚƐ ƐŚĂůůďĞĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞŝƚLJΖƐƉŽŽůĞĚŝŶǀĞƐƚŵĞŶƚ ĞĂƌŶŝŶŐƌĂƚĞŽŶĂƋƵĂƌƚĞƌůLJďĂƐŝƐ͘ WĞƌZĞƐŽůƵƚŝŽŶϮϬϭϱͲϬϯϱŽĨƚŚĞŝƚLJŽƵŶĐŝů͕ŝŶƚĞƌĨƵŶĚ ůŽĂŶƐĨƌŽŵƚŚĞdƌĂŶƐƉŽƌƚĂƚŝŽŶĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ ƚŽƚŚĞ&ŝƌĞ^ƵƉƉƌĞƐƐŝŽŶ^LJƐƚĞŵĞdžƉĂŶƐŝŽŶĐŽŵƉŽŶĞŶƚ ŽĨƚŚĞWƵďůŝĐĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞǁĞƌĞ ĐŽŶƐŽůŝĚĂƚĞĚ ŝŶƚŽ ŽŶĞ ůŽĂŶ ƚŽƚĂůŝŶŐ ΨϭϬ͕ϱϬϬ͕ϬϬϬ͘ dŚĞ ďĂůĂŶĐĞĨŽƌƚŚĞůŽĂŶǁĂƐΨϴ͕ϭϲϬ͕ϯϮϯĂƚ:ƵŶĞϯϬ͕ϮϬϭϳ͘ /ŶĂĐĐŽƌĚĂŶĐĞǁŝƚŚŽƵŶĐŝůWŽůŝĐLJEŽ͘ϮϮϬͲϬϲ͕ĂƉƉƌŽǀĞĚ ǀŝĂZĞƐŽůƵƚŝŽŶϮϬϭϱͲϬϮϴ͕ƚŚĞĨŝŶĂŶĐŝŶŐĐŽƐƚƐƐŚĂůůďĞ ĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞŝƚLJΖƐƉŽŽůĞĚŝŶǀĞƐƚŵĞŶƚĞĂƌŶŝŶŐ ƌĂƚĞŽŶĂƋƵĂƌƚĞƌůLJďĂƐŝƐ͘ ŝƚLJŽƵŶĐŝůĂƵƚŚŽƌŝnjĞĚĂůŽĂŶƚŽtĞƐƚĞƌŶWĨƌŽŵ ĂƐƚĞƌŶWŝŶƚŚĞĂŵŽƵŶƚŽĨΨϵ͕ϲϯϬ͕ϬϬϬƚŽĂĐƋƵŝƌĞƚŚĞ ϭϰ͘ϰϭĂĐƌĞƐŝƚĞůŽĐĂƚĞĚŝŶƚŚĞůŽǁĞƌ^ǁĞĞƚǁĂƚĞƌsĂůůĞLJ ŽǁŶĞĚďLJƚŚĞZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJĂŶĚΨϯϭϬ͕ϬϬϬƚŽ ĂĐƋƵŝƌĞƚŚĞϭ͘ϴϵĂĐƌĞƐŝƚĞůŽĐĂƚĞĚĂƚƵƚŽWĂƌŬWůĂĐĞ͕ ŚƵůĂ sŝƐƚĂ͘ WĞƌ ZĞƐŽůƵƚŝŽŶ ϮϬϭϱͲϬϯϱ ŽĨ ƚŚĞ ŝƚLJ ŽƵŶĐŝů͕ƚŚĞƐĞůŽĂŶƐǁĞƌĞĐŽŶƐŽůŝĚĂƚĞĚ͘dŚĞůŽĂŶǁŝůůďĞ ƌĞƉĂŝĚĂƐĨƵŶĚƐďĞĐŽŵĞĂǀĂŝůĂďůĞ͕ĞŝƚŚĞƌĂƐĂƌĞƐƵůƚŽĨ ĐƌĞĚŝƚ ĂĐƋƵŝƐŝƚŝŽŶƐ ďLJ ƚŚĞ ŐĞŶĐLJ Žƌ ƚŚĞ ƉĂLJŵĞŶƚ ŽĨ W ĨĞĞƐ ďLJ ĚĞǀĞůŽƉĞƌƐ ŝŶ ǁĞƐƚĞƌŶ ŚƵůĂ sŝƐƚĂ͖ ŝŶ ĐŽŶũƵŶĐƚŝŽŶ ǁŝƚŚ ŽƵŶĐŝů WŽůŝĐLJ EŽ ϮϬϬͲϬϲ͕ ĂƉƉƌŽǀĞĚ ǀŝĂZĞƐŽůƵƚŝŽŶϮϬϭϱͲϬϮϴ͕ƚŚĞĨŝŶĂŶĐŝŶŐĐŽƐƚƐƐŚĂůůďĞ ĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞŝƚLJΖƐƉŽŽůĞĚŝŶǀĞƐƚŵĞŶƚĞĂƌŶŝŶŐ ƌĂƚĞŽŶĂƋƵĂƌƚĞƌůLJďĂƐŝƐ͘dŚĞďĂůĂŶĐĞǁĂƐΨϵ͕Ϯϭϵ͕Ϯϯϴ Ăƚ:ƵŶĞϯϬ͕ϮϬϭϳ͘dŚĞŐĞŶĐLJǁŝůůĞŶƐƵƌĞƚŚĂƚWĨƵŶĚƐ ĂƌĞƌĞƉĂŝĚƚŽĨƵůůLJĨƵŶĚƚŚĞĚĞǀĞůŽƉŵĞŶƚŽĨƚŚĞƉĂƌŬĨŽƌ ǁŚŝĐŚƚŚĞLJǁĞƌĞŽƌŝŐŝŶĂůůLJĐŽůůĞĐƚĞĚ͘ dŚĞ ŝƚLJ ŽƵŶĐŝů ĂƵƚŚŽƌŝnjĞĚ ĂŶĚ ƐĞƚ ƚĞƌŵƐ ĨŽƌ ůŽĂŶƐ ĨƌŽŵ ƚŚĞ dƌƵŶŬ ^ĞǁĞƌ ĨƵŶĚ ƚŽ ^Ăůƚ ƌĞĞŬ ĨŽƌ Ψϭϲ͕ϴϰϴ͕ϯϴϭ͕ƚŽƚŚĞ^ƚŽƌŵƌĂŝŶĨƵŶĚĨŽƌΨϳϰϰ͕ϲϭϮ͕ĂŶĚ ΨϴϬϯ͕ϯϯϭ ĨƌŽŵ ƚŚĞ ^ĞǁĞƌ &ĂĐŝůŝƚLJ ĨƵŶĚ ĨŽƌ ĐĂƉŝƚĂů ŝŵƉƌŽǀĞŵĞŶƚ ƉƌŽũĞĐƚƐ͕ ǀŝĂ ZĞƐŽůƵƚŝŽŶ ϮϬϭϱͲϬϯϱ͘ /Ŷ ĂĐĐŽƌĚĂŶĐĞǁŝƚŚ ŽƵŶĐŝů WŽůŝĐLJ EŽ͘ϮϮϬͲϬϲ͕ ĂƉƉƌŽǀĞĚ ǀŝĂZĞƐŽůƵƚŝŽŶϮϬϭϱͲϬϮϴ͕ƚŚĞĨŝŶĂŶĐŝŶŐĐŽƐƚƐƐŚĂůůďĞ ĐĂůĐƵůĂƚĞĚƵƐŝŶŐƚŚĞŝƚLJΖƐƉŽŽůĞĚŝŶǀĞƐƚŵĞŶƚĞĂƌŶŝŶŐ ƌĂƚĞŽŶĂƋƵĂƌƚĞƌůLJďĂƐŝƐ͘dŚĞďĂůĂŶĐĞǁĂƐΨϭϵ͕ϱϬϳ͕ϬϳϮ Ăƚ:ƵŶĞϯϬ͕ϮϬϭϳ͘ 'ĞŶĞƌĂů&ƵŶĚ>ŽŶŐͲdĞƌŵĞďƚĨŽƌ&ŝƐĐĂůzĞĂƌϮϬϭϵ dŚĞ'ĞŶĞƌĂů&ƵŶĚ͛ƐĂŶŶƵĂůĚĞďƚƐĞƌǀŝĐĞ͞ĐŽŵŵŝƚŵĞŶƚ͟ ĨŽƌ ƚŚĞ ĞƌƚŝĨŝĐĂƚĞƐ ŽĨ WĂƌƚŝĐŝƉĂƚŝŽŶ ĂŶĚ ƚŚĞ >ĞĂƐĞ ZĞǀĞŶƵĞ ZĞĨƵŶĚŝŶŐ ŽŶĚ ŝŶ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϴͲϭϵ ŝƐ ĂƉƉƌŽdžŝŵĂƚĞůLJΨϵ͘ϱŵŝůůŝŽŶ͕Žƌϱ͘ϰйŽĨƚŚĞ'ĞŶĞƌĂů&ƵŶĚ ŽƉĞƌĂƚŝŶŐ ďƵĚŐĞƚ͘ ,ŽǁĞǀĞƌ͕ ŝƚ ŵƵƐƚ ďĞ ŶŽƚĞĚ ƚŚĂƚ ĂůƚŚŽƵŐŚ ƚŚŝƐ ĂŵŽƵŶƚ ŝƐ ƚƌƵůLJ Ă 'ĞŶĞƌĂů &ƵŶĚ ĐŽŵŵŝƚŵĞŶƚ͕ ŽŶůLJ Ψϯ͘ϲ ŵŝůůŝŽŶ ǁŝůů ĂĐƚƵĂůůLJ ďĞ ƉĂŝĚ ĨƌŽŵ 'ĞŶĞƌĂů &ƵŶĚ ƌĞƐŽƵƌĐĞƐ͕ ǁŝƚŚ ƚŚĞ ƌĞŵĂŝŶŝŶŐ ĂŵŽƵŶƚƉĂŝĚĨƌŽŵĂǀĂŝůĂďůĞĚĞǀĞůŽƉŵĞŶƚŝŵƉĂĐƚĨĞĞƐ 271 422 ʹͲͳͻ ĂŶĚ ƌĞƐŝĚĞŶƚŝĂů ĐŽŶƐƚƌƵĐƚŝŽŶ ƚĂdž͘ dŚĞ Ψϯ͘ϲ ŵŝůůŝŽŶ ƌĞƉƌĞƐĞŶƚƐ ĂƉƉƌŽdžŝŵĂƚĞůLJ Ϯ͘ϭй ŽĨ ƚŚĞ 'ĞŶĞƌĂů &ƵŶĚ ŽƉĞƌĂƚŝŶŐďƵĚŐĞƚ͘dŚĞΨϵ͘ϱŵŝůůŝŽŶƌĞƉƌĞƐĞŶƚƐŽŶŐŽŝŶŐ ůĞǀĞůĚĞďƚƐĞƌǀŝĐĞƉĂLJŵĞŶƚƐĂƐĚĞƉŝĐƚĞĚŝŶƚŚĞĨŽůůŽǁŝŶŐ ĐŚĂƌƚ͘ ŶŶƵĂůĞďƚ^ĞƌǀŝĐĞKďůŝŐĂƚŝŽŶŽĨƚŚĞ'ĞŶĞƌĂů&ƵŶĚ &ŝƐĐĂůzĞĂƌƐϮϬϬϲͲϬϳƚŚƌŽƵŐŚϮϬϯϱͲϯϲ EŽƚĞ͗ ϭͿĐƚƵĂůƉĂLJŵĞŶƚƐĂƌĞĨƵŶĚĞĚďLJƚŚĞ'ĞŶĞƌĂů&ƵŶĚ͕ĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ&ƵŶĚƐĂŶĚƌĞƐŝĚĞŶƚŝĂůĐŽŶƐƚƌƵĐƚŝŽŶƚĂdžŚŽǁĞǀĞƌĂůůĚĞďƚƐĞƌǀŝĐĞ ŽďůŝŐĂƚŝŽŶƐĂƌĞďĂĐŬĞĚďLJƚŚĞ'ĞŶĞƌĂů&ƵŶĚ͘ ϮͿdŚĞϮϬϬϮKWǁĂƐƌĞĨƵŶĚĞĚŝŶ&zϮϬϭϯĂŶĚďĞĐĂŵĞƚŚĞϮϬϭϰZĞĨƵŶĚŝŶŐKW͘dŚĞϮϬϬϰKWǁĂƐƌĞĨƵŶĚĞĚĂŶĚƚŚĞϮϬϬϲǁĂƐƉĂƌƚŝĂůůLJƌĞĨƵŶĚĞĚ ĂŶĚďĞĐĂŵĞƚŚĞϮϬϭϱZĞĨƵŶĚŝŶŐKW͘dŚĞϮϬϬϲKWǁĂƐƌĞĨƵŶĚĞĚĂŶĚďĞĐĂŵĞƚŚĞϮϬϭϲZĞĨƵŶĚŝŶŐKW͘dŚĞϮϬϭϬKWǁĂƐƌĞĨƵŶĚĞĚĂŶĚ ďĞĐĂŵĞƚŚĞϮϬϭϲ>ĞĂƐĞZĞǀĞŶƵĞZĞĨƵŶĚŝŶŐŽŶĚƐ͘ 272 423 ʹͲͳͻ 273 424 274 425 ʹͲͳͻ ƌƚŝĐůĞy///ŽĨƚŚĞĂůŝĨŽƌŶŝĂŽŶƐƚŝƚƵƚŝŽŶ͕ĂƉƉƌŽǀĞĚďLJ ƚŚĞǀŽƚĞƌƐŝŶϭϵϳϵ͕ŝŵƉŽƐĞĚƚŚĞĐŽŶĐĞƉƚŽĨƐƉĞŶĚŝŶŐ ůŝŵŝƚƐ ŽŶ ůŽĐĂů ŐŽǀĞƌŶŵĞŶƚƐ͘ dŚŝƐ ŽŶƐƚŝƚƵƚŝŽŶĂů ƉƌŽǀŝƐŝŽŶĂŶĚƌĞůĂƚĞĚŝŵƉůĞŵĞŶƚŝŶŐůĞŐŝƐůĂƚŝŽŶƐƉĞĐŝĨŝĞƐ ƚŚĂƚĂŶŶƵĂůŝŶĐƌĞĂƐĞƐŝŶĂƉƉƌŽƉƌŝĂƚŝŽŶƐĨŝŶĂŶĐĞĚĨƌŽŵ ΗWƌŽĐĞĞĚƐŽĨdĂdžĞƐΗĂƌĞůŝŵŝƚĞĚƚŽĂďĂƐĞLJĞĂƌ;ϭϵϳϴͲ ϳϵͿ ĂŵŽƵŶƚ ŝŶĐƌĞĂƐĞĚ ĂŶŶƵĂůůLJ ďLJ ĂŶ ŝŶĨůĂƚŝŽŶ ĨĂĐƚŽƌ ĐŽŵƉƌŝƐĞĚ ŽĨ ƚŚĞ ĐŚĂŶŐĞ ŝŶ ƉŽƉƵůĂƚŝŽŶ ŽĨ ƚŚĞ ŝƚLJ ĐŽŵďŝŶĞĚǁŝƚŚƚŚĞŐƌĞĂƚĞƌŽĨƚŚĞĐŚĂŶŐĞŝŶŶĞǁŶŽŶͲ ƌĞƐŝĚĞŶƚŝĂůĐŽŶƐƚƌƵĐƚŝŽŶŽƌƚŚĞĐŚĂŶŐĞŝŶƚŚĞĂůŝĨŽƌŶŝĂ ƉĞƌĐĂƉŝƚĂƉĞƌƐŽŶĂůŝŶĐŽŵĞ͘LJĚĞĨŝŶŝƚŝŽŶ͕ΗWƌŽĐĞĞĚƐŽĨ dĂdžĞƐΗŝŶĐůƵĚĞƐƐƵĐŚƌĞǀĞŶƵĞƐĂƐƉƌŽƉĞƌƚLJƚĂdžĞƐ͕ƐĂůĞƐ ĂŶĚƵƐĞƚĂdžĞƐ͕ƵƚŝůŝƚLJƵƐĞƌƐƚĂdžĞƐ͕ƚƌĂŶƐŝĞŶƚŽĐĐƵƉĂŶĐLJ ƚĂdžĞƐ͕ ĂŶĚ ƐƚĂƚĞ ƐƵďǀĞŶƚŝŽŶƐ͘ ZĞǀĞŶƵĞƐ ĨƌŽŵ ŽƚŚĞƌ ƐŽƵƌĐĞƐ ůŝŬĞ ĨĞĞƐͬĐŚĂƌŐĞƐ ĂŶĚ ĨĞĚĞƌĂů ŐƌĂŶƚƐ ĂƌĞ ĐŽŶƐŝĚĞƌĞĚ ΗEŽŶͲWƌŽĐĞĞĚƐ ŽĨ dĂdžĞƐΗ ĂŶĚ ĂƌĞ ŶŽƚ ƐƵďũĞĐƚƚŽƚŚĞĂŶŶƵĂůƐƉĞŶĚŝŶŐůŝŵŝƚ͘dŚŝƐĐĂůĐƵůĂƚŝŽŶ ŚĂƐĂůǁĂLJƐďĞĞŶƉĞƌĨƵŶĐƚŽƌLJĨŽƌƚŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ͕ ƐŝŶĐĞƚŚĞƉƌŽĐĞĞĚƐŽĨƚĂdžĞƐĨŽƌƚŚĞŝƚLJĂƌĞĨĂƌůĞƐƐƚŚĂŶ ƚŚĞƐƚĂƚƵƚŽƌLJĂƉƉƌŽƉƌŝĂƚŝŽŶƐůŝŵŝƚ͘ dŚĞ ^ƚĂƚĞ ĞƉĂƌƚŵĞŶƚ ŽĨ &ŝŶĂŶĐĞ ĂŶĚ ƚŚĞ ^ĂŶ ŝĞŐŽ ŽƵŶƚLJƐƐĞƐƐŽƌΖƐKĨĨŝĐĞĂƌĞĐŚĂƌŐĞĚǁŝƚŚƉƌŽǀŝĚŝŶŐƚŚĞ ĚĂƚĂŶĞĐĞƐƐĂƌLJĨŽƌůŽĐĂůũƵƌŝƐĚŝĐƚŝŽŶƐƚŽĞƐƚĂďůŝƐŚƚŚĞŝƌ ĂƉƉƌŽƉƌŝĂƚŝŽŶƐ ůŝŵŝƚ͘ ĐĐŽƌĚŝŶŐ ƚŽ ƚŚĞƐĞ ƐŽƵƌĐĞƐ͕ ĨŽƌ ƉƵƌƉŽƐĞƐŽĨƚŚĞĨŝƐĐĂůLJĞĂƌϮϬϭϳͲϮϬϭϴĐĂůĐƵůĂƚŝŽŶ͕ƚŚĞ ƉŽƉƵůĂƚŝŽŶ ŝŶĐƌĞĂƐĞĚ ϭ͘ϭϰй͘ ĂůŝĨŽƌŶŝĂ ƉĞƌ ĐĂƉŝƚĂ ƉĞƌƐŽŶĂů ŝŶĐŽŵĞ ŝŶĐƌĞĂƐĞĚ ďLJ ϯ͘ϲϵй ĂŶĚ ŶĞǁ ŶŽŶͲ ƌĞƐŝĚĞŶƚŝĂů ĐŽŶƐƚƌƵĐƚŝŽŶ ŝŶĐƌĞĂƐĞĚ ďLJ Ϯ͘ϴϴй͘ ŽŶƐĞƋƵĞŶƚůLJ͕ƚŚĞĂůŝĨŽƌŶŝĂƉĞƌĐĂƉŝƚĂƉĞƌƐŽŶĂůŝŶĐŽŵĞ ǁĂƐƵƐĞĚŝŶƚŚĞĨŽƌŵƵůĂƚŽĐŽŵƉƵƚĞƚŚĞůŝŵŝƚƐŝŶĐĞƚŚŝƐ ŝŶĐƌĞĂƐĞŝƐƚŚĞŐƌĞĂƚĞƌŽĨƚŚĞƚǁŽĂŵŽƵŶƚƐ͘ &ŝƐĐĂůzĞĂƌϮϬϭϳͲϭϴƉƉƌŽƉƌŝĂƚŝŽŶƐ>ŝŵŝƚ dŚĞ ĨŝƐĐĂů LJĞĂƌ ϮϬϭϳͲϭϴ ƉƉƌŽƉƌŝĂƚŝŽŶƐ >ŝŵŝƚ ŚĂƐ ďĞĞŶĐĂůĐƵůĂƚĞĚĂƐĨŽůůŽǁƐ͗ &ŝƐĐĂůzĞĂƌϮϬϭϲͲϭϳƉƉƌŽƉƌŝĂƚŝŽŶƐ>ŝŵŝƚ ϴϭϭ͕ϳϲϬ͕ϳϰϲΨ /ŶĐƌĞĂƐĞĚ ďLJ ĂŶ ŝŶĨůĂƚŝŽŶ ĨĂĐƚŽƌ ĐŽŵƉŽƐĞĚ ŽĨ ƚŚĞ ŝŶĐƌĞĂƐĞƐ ŝŶ ƉŽƉƵůĂƚŝŽŶĂŶĚƉĞƌĐĂƉŝƚĂŝŶĐŽŵĞĐŚĂŶŐĞ džϭ͘ϬϰϴϳϮϭ &/^>z ZϮϬϭϳͲϭϴWWZKWZ/d/KE^>/D/d ϴϱϭ͕ϯϭϬ͕ϮϲϲΨ &ŝƐĐĂůzĞĂƌϮϬϭϳͲϭϴƉƉƌŽƉƌŝĂƚŝŽŶ>ŝŵŝƚ 275 426 ʹͲͳͻ WƌŽĐĞĞĚƐŽĨdĂdžĞƐ dŚĞΗWƌŽĐĞĞĚƐŽĨdĂdžĞƐΗĂƐŝŶĐůƵĚĞĚŝŶƚŚĞĨŝƐĐĂůLJĞĂƌ ϮϬϭϳͲϭϴ ĚŽƉƚĞĚ ƵĚŐĞƚ ƚŚĂƚ ĂƌĞ ƐƵďũĞĐƚ ƚŽ ƚŚĞ ĂƉƉƌŽƉƌŝĂƚŝŽŶƐůŝŵŝƚĂƌĞĞƐƚŝŵĂƚĞĚƚŽďĞ Ψϭϭϳ͕ϱϱϱ͕ϰϳϭ͘ dŚĞƌĞĨŽƌĞ ƚŚĞ ŝƚLJ ŚĂƐ ǁŚĂƚ ŝƐ ƌĞĨĞƌƌĞĚ ƚŽ ĂƐ ĂŶ ĂƉƉƌŽƉƌŝĂƚŝŽŶ ΗŐĂƉΗ ŽĨ Ψϳϯϯ͕ϳϱϰ͕ϳϵϱ;Ψϴϱϭ͕ϯϭϬ͕ϮϲϲͲΨϭϭϳ͕ϱϱϱ͕ϰϳϭͿ͘^ŝŵƉůLJ ƐƚĂƚĞĚ͕ƚŚŝƐŵĞĂŶƐƚŚĂƚƚŚĞŝƚLJĐŽƵůĚĐŽůůĞĐƚĂŶĚ ƐƉĞŶĚƵƉƚŽΨϳϯϯ͕ϳϱϰ͕ϳϵϱŵŽƌĞŝŶƚĂdžĞƐĚƵƌŝŶŐ&ŝƐĐĂů zĞĂƌϮϬϭϳͲϮϬϭϴǁŝƚŚŽƵƚĞdžĐĞĞĚŝŶŐƚŚĞŽŶƐƚŝƚƵƚŝŽŶĂů ůŝŵŝƚ͘ WƌŽĐĞĞĚƐŽĨdĂdžĞƐŽŵƉĂƌĞĚƚŽ>ĞŐĂů^ƉĞŶĚŝŶŐ>ŝŵŝƚ ΨϬ ΨϭϬϬ ΨϮϬϬ ΨϯϬϬ ΨϰϬϬ ΨϱϬϬ ΨϲϬϬ ΨϳϬϬ ΨϴϬϬ ΨϵϬϬ &zϮϬϭϯͲϮϬϭϰ &zϮϬϭϰͲϮϬϭϱ &zϮϬϭϱͲϮϬϭϲ &zϮϬϭϲͲϮϬϭϳ &zϮϬϭϳͲϮϬϭϴDŝůůŝŽŶƐ WƌŽĐĞĞĚƐŽĨdĂdžĞƐ ƉƉƌŽƉƌŝĂƚŝŽŶƐ>ŝŵŝƚ 276 427 ʹͲͳͻ 277 428 278 429 ʹͲͳͻ hŶĚĞƌ^ƚĂƚĞůĂǁ͕ƚŚĞŝƚLJŚĂƐĂůĞŐĂůĚĞďƚůŝŵŝƚĂƚŝŽŶŶŽƚ ƚŽĞdžĐĞĞĚϭϱйŽĨƚŚĞƚŽƚĂůĂƐƐĞƐƐĞĚǀĂůƵĂƚŝŽŶŽĨƚĂdžĂďůĞ ƉƌŽƉĞƌƚLJǁŝƚŚŝŶŝƚLJďŽƵŶĚĂƌŝĞƐ͘ƐŽĨ:ƵŶĞϯϬ͕ϮϬϭϳ ƚŚĞ ŝƚLJ͛Ɛ ůĞŐĂů ĚĞďƚ ůŝŵŝƚ ŝƐ Ψϵϲϲ͕ϲϬϮ͕ϳϵϰ͘ /Ŷ ĂĐĐŽƌĚĂŶĐĞ ǁŝƚŚ ĂůŝĨŽƌŶŝĂ 'ŽǀĞƌŶŵĞŶƚ ŽĚĞ ^ĞĐƚŝŽŶ ϰϯϲϬϱ͕ ŽŶůLJ ƚŚĞ ŝƚLJ͛Ɛ ŐĞŶĞƌĂů ŽďůŝŐĂƚŝŽŶ ďŽŶĚƐ ĂƌĞ ƐƵďũĞĐƚ ƚŽ ƚŚŝƐ ůŝŵŝƚ͘ dŚĞ ŝƚLJ ŽĨ ŚƵůĂ sŝƐƚĂ ŚĂƐ ŶŽ ŽƵƚƐƚĂŶĚŝŶŐ'ĞŶĞƌĂůKďůŝŐĂƚŝŽŶŽŶĚƐ͘dŚĞƚĂďůĞďĞůŽǁ ƐƵŵŵĂƌŝnjĞƐƚŚĞŝƚLJ͛ƐĚĞďƚůŝŵŝƚŵĂƌŐŝŶ͘ ŽŵƉƵƚĂƚŝŽŶŽĨĞďƚ>ŝŵŝƚDĂƌŐŝŶ &ŝƐĐĂůzĞĂƌƐ ŶĚĞĚϮϬϭϱƚŚƌŽƵŐŚϮϬϭϳ :ƵŶĞϯϬ͕ϮϬϭϱ :ƵŶĞϯϬ͕ϮϬϭϲ :ƵŶĞϯϬ͕ϮϬϭϳ dŽƚĂůƐƐĞƐƐĞĚsĂůƵĂƚŝŽŶ Ϯϯ͕ϬϵϬ͕ϰϰϬ͕ϯϱϯΨ Ϯϰ͕ϰϱϱ͕ϵϵϴ͕ϲϰϭΨ Ϯϱ͕ϳϳϲ͕Ϭϳϰ͕ϱϬϵΨ ŽŶǀĞƌƐŝŽŶWĞƌĐĞŶƚĂŐĞ Ϯϱй Ϯϱй Ϯϱй ĚũƵƐƚĞĚƐƐĞƐƐĞĚsĂůƵĂƚŝŽŶ ϱ͕ϳϳϮ͕ϲϭϬ͕ϬϴϴΨ ϲ͕ϭϭϯ͕ϵϵϵ͕ϲϲϬΨ ϲ͕ϰϰϰ͕Ϭϭϴ͕ϲϮϳΨ Ğďƚ>ŝŵŝƚĂƚŝŽŶWĞƌĐĞŶƚĂŐĞ ϭϱй ϭϱй ϭϱй Ğďƚ>ŝŵŝƚ ϴϲϱ͕ϴϵϭ͕ϱϭϯΨ ϵϭϳ͕Ϭϵϵ͕ϵϰϵΨ ϵϲϲ͕ϲϬϮ͕ϳϵϰΨ dŽƚĂůĞďƚƉƉůŝĐĂďůĞƚŽ>ŝŵŝƚ͗ WĞŶƐŝŽŶKďůŝŐĂƚŝŽŶŽŶĚƐ ͲΨ ͲΨ ͲΨ >ĞŐĂůĞďƚDĂƌŐŝŶ ϴϲϱ͕ϴϵϭ͕ϱϭϯΨ ϵϭϳ͕Ϭϵϵ͕ϵϰϵΨ ϵϲϲ͕ϲϬϮ͕ϳϵϰΨ dŚĞ'ŽǀĞƌŶŵĞŶƚŽĚĞŽĨƚŚĞ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂƉƌŽǀŝĚĞƐĨŽƌĂůĞŐĂůĚĞďƚůŝŵŝƚŽĨϭϱйŽĨŐƌŽƐƐĂƐƐĞƐƐĞĚǀĂůƵĂƚŝŽŶ͘,ŽǁĞǀĞƌ͕ƚŚŝƐƉƌŽǀŝƐŝŽŶǁĂƐ ĞŶĂĐƚĞĚǁŚĞŶĂƐƐĞƐƐĞĚǀĂůƵĂƚŝŽŶǁĂƐďĂƐĞĚƵƉŽŶϮϱйŽĨŵĂƌŬĞƚǀĂůƵĞ͘ ĨĨĞĐƚŝǀĞǁŝƚŚƚŚĞϭϵϴϭͲϴϮĨŝƐĐĂůLJĞĂƌ͕ĞĂĐŚƉĂƌĐĞůŝƐŶŽǁĂƐƐĞƐƐĞĚĂƚϭϬϬй ŽĨŵĂƌŬĞƚǀĂůƵĞ;ĂƐŽĨƚŚĞŵŽƐƚƌĞĐĞŶƚĐŚĂŶŐĞŝŶŽǁŶĞƌƐŚŝƉĨŽƌƚŚĂƚƉĂƌĐĞůͿ͘dŚĞĐŽŵƉƵƚĂƚŝŽŶƐƐŚŽǁŶĂďŽǀĞƌĞĨůĞĐƚĂĐŽŶǀĞƌƐŝŽŶŽĨĂƐƐĞƐƐĞĚ ǀĂůƵĂƚŝŽŶĚĂƚĂĨŽƌĞĂĐŚĨŝƐĐĂůLJĞĂƌĨƌŽŵƚŚĞĐƵƌƌĞŶƚĨƵůůǀĂůƵĂƚŝŽŶƉĞƌƐƉĞĐƚŝǀĞƚŽƚŚĞϮϱйůĞǀĞůƚŚĂƚǁĂƐŝŶĞĨĨĞĐƚĂƚƚŚĞƚŝŵĞƚŚĂƚƚŚĞůĞŐĂůĚĞďƚŵĂƌŐŝŶ ǁĂƐĞŶĂĐƚĞĚďLJƚŚĞ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂĨŽƌůŽĐĂůŐŽǀĞƌŶŵĞŶƚƐůŽĐĂƚĞĚǁŝƚŚŝŶƚŚĞ^ƚĂƚĞ͘ 279 430 280 431 ʹͲͳͻ 281 432 282 433 ʹͲͳͻ dŚĞŝƚLJŽĨŚƵůĂsŝƐƚĂ͛ƐďƵĚŐĞƚƉƌŽǀŝĚĞƐĂŶŽǀĞƌǀŝĞǁŽĨ ƚŚĞĨŝƐĐĂůĂŶĚŽƉĞƌĂƚŝŽŶĂůƐƚĂƚƵƐŽĨƚŚĞŝƚLJ͖ŚŝŐŚůŝŐŚƚŝŶŐ ƉŽůŝĐLJ ŝƐƐƵĞƐ͕ ĚĞĐŝƐŝŽŶƐ͕ ĂŶĚ ƉƌŽƉŽƐĞĚ ĐŚĂŶŐĞƐ ŝŶ ƐĞƌǀŝĐĞůĞǀĞůƐ͘dŚĞďƵĚŐĞƚŝƐĐŽŵƉƌŝƐĞĚŽĨĂƐĞƌŝĞƐŽĨ ĨƵŶĚƐƵƐĞĚƚŽĂĐĐŽƵŶƚĨŽƌƌĞǀĞŶƵĞƐĂŶĚĞdžƉĞŶĚŝƚƵƌĞƐ͘ dŚĞƐĞĨƵŶĚƐĂƌĞŐĞŶĞƌĂůůLJĐĂƚĞŐŽƌŝnjĞĚĂƐŐŽǀĞƌŶŵĞŶƚĂů ŽƌƉƌŽƉƌŝĞƚĂƌLJĨƵŶĚƐ͘ 'ŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐŝŶĐůƵĚĞĂĐƚŝǀŝƚŝĞƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ƚŚĞ ŽƉĞƌĂƚŝŽŶƐ ŽĨ ƚŚĞ ŝƚLJ ƐƵĐŚ ĂƐ ƚŚĞ ƉƌŽǀŝƐŝŽŶ ŽĨ ůŝďƌĂƌLJ͕ ƌĞĐƌĞĂƚŝŽŶ͕ ĂŶĚ ƉƵďůŝĐ ƐĂĨĞƚLJ ƐĞƌǀŝĐĞƐ͘ ^ƉĞĐŝĂů ƌĞǀĞŶƵĞ ĨƵŶĚƐ͕ ĐĂƉŝƚĂů ƉƌŽũĞĐƚ ĨƵŶĚƐ͕ ĚĞďƚ ƐĞƌǀŝĐĞ ĨƵŶĚƐ͕ĂŶĚƚŚĞŝƚLJ͛ƐŐĞŶĞƌĂůĨƵŶĚĂƌĞĚŝĨĨĞƌĞŶƚƚLJƉĞƐŽĨ ŐŽǀĞƌŶŵĞŶƚĂůĨƵŶĚƐ͘ WƌŽƉƌŝĞƚĂƌLJ ĨƵŶĚƐ ĂƌĞ ƵƐĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ ĂĐƚŝǀŝƚŝĞƐ ŽĨƚĞŶ ĨŽƵŶĚ ŝŶ ƚŚĞ ƉƌŝǀĂƚĞ ƐĞĐƚŽƌ ŝŶĐůƵĚŝŶŐ ƚǁŽ ĨƵŶĚ ƚLJƉĞƐ͗ ĞŶƚĞƌƉƌŝƐĞ ĨƵŶĚƐ ĂŶĚ ŝŶƚĞƌŶĂů ƐĞƌǀŝĐĞ ĨƵŶĚƐ͘ KƉĞƌĂƚŝŽŶƐ ŽĨ ƚŚĞ ĚĞǀĞůŽƉŵĞŶƚ ƐĞƌǀŝĐĞ ĂŶĚ ƐĞǁĞƌ ƐLJƐƚĞŵƐ ĂƌĞ ĂĐĐŽƵŶƚĞĚ ĨŽƌ ĂƐ ĞŶƚĞƌƉƌŝƐĞ ĨƵŶĚƐ͘ džĂŵƉůĞƐŽĨĨƵŶĐƚŝŽŶƐĂĐĐŽƵŶƚĞĚĨŽƌďLJŝŶƚĞƌŶĂůƐĞƌǀŝĐĞ ĨƵŶĚƐ ŝŶĐůƵĚĞ ĨůĞĞƚ ŵĂŶĂŐĞŵĞŶƚ ĂŶĚ ǁŽƌŬĞƌ͛Ɛ ĐŽŵƉĞŶƐĂƚŝŽŶ͘ dŚĞďƵĚŐĞƚĚŽĐƵŵĞŶƚŝƐŽƌŐĂŶŝnjĞĚĂƌŽƵŶĚƚŚĞĨŽůůŽǁŝŶŐ ŵĂũŽƌ ĨƵŶĚƐ ʹ 'ĞŶĞƌĂů &ƵŶĚ͕ ZĞĚĞǀĞůŽƉŵĞŶƚ ZĞƚŝƌĞŵĞŶƚ KďůŝŐĂƚŝŽŶ &ƵŶĚ ĂŶĚ ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJ ƚŽ ƚŚĞZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJ&ƵŶĚƐ͕^ĞǁĞƌ&ƵŶĚƐ͕&ůĞĞƚ ^ĞƌǀŝĐĞ &ƵŶĚƐ͕ ĂƉŝƚĂů WƌŽũĞĐƚƐ &ƵŶĚƐ͕ Ğďƚ ^ĞƌǀŝĐĞ &ƵŶĚƐ͕ĂŶĚKƚŚĞƌ&ƵŶĚƐ͘ĞƚĂŝůƐĂďŽƵƚĞĂĐŚŽĨƚŚĞƐĞ ĨƵŶĚƐĐĂŶďĞĨŽƵŶĚŝŶƚŚĞĐŽƌƌĞƐƉŽŶĚŝŶŐƐĞĐƚŝŽŶƐŽĨƚŚĞ ĚŽĐƵŵĞŶƚ͘ ŝƚLJŽĨŚƵůĂsŝƐƚĂ&ƵŶĚ^ƚƌƵĐƚƵƌĞ ƵĚŐĞƚĂƌLJ&ƵŶĚƐ 'ŽǀĞƌŶŵĞŶƚĂů&ƵŶĚƐ 'ĞŶĞƌĂů&ƵŶĚ Ğďƚ^ĞƌǀŝĐĞ&ƵŶĚƐ ĂƉŝƚĂůWƌŽũĞĐƚ &ƵŶĚƐ ^ƉĞĐŝĂůZĞǀĞŶƵĞ &ƵŶĚƐ ZĞĚĞǀĞůŽƉŵĞŶƚ ZĞƚŝƌĞŵĞŶƚKďůŝŐĂƚŝŽŶ &ƵŶĚĂŶĚ^ƵĐĐĞƐƐŽƌ ŐĞŶĐLJƚŽƚŚĞ ZĞĚĞǀĞůŽƉŵĞŶƚ ŐĞŶĐLJ&ƵŶĚƐ WƌŽƉƌŝĞƚĂƌLJ&ƵŶĚƐ ŶƚĞƌƉƌŝƐĞ&ƵŶĚƐ ^ĞǁĞƌ&ƵŶĚƐ ĞǀĞůŽƉŵĞŶƚ^ĞƌǀŝĐĞ &ƵŶĚ /ŶƚĞƌŶĂů^ĞƌǀŝĐĞ &ƵŶĚƐ 283 434 ʹͲͳͻ ĂĐŚ ĨƵŶĚ ŝƐ ĐŽŶƐŝĚĞƌĞĚ ĂŶ ĂƵƚŽŶŽŵŽƵƐ ĂĐĐŽƵŶƚŝŶŐ ĞŶƚŝƚLJ͘&ƵŶĚƐĂƌĞƵƐĞĚƚŽƐĞƉĂƌĂƚĞƚŚĞǀĂƌŝŽƵƐĨŝŶĂŶĐŝĂů ĂĐƚŝǀŝƚŝĞƐ ŽĨ ƚŚĞ ŝƚLJ ĂŶĚ ƚŽ ĚĞŵŽŶƐƚƌĂƚĞ ĐŽŵƉůŝĂŶĐĞ ǁŝƚŚ ƐƉĞĐŝĨŝĐ ƌĞŐƵůĂƚŝŽŶƐ͕ ƌĞƐƚƌŝĐƚŝŽŶƐ͕ Žƌ ůŝŵŝƚĂƚŝŽŶƐ͘ dŚŝƐŵĂLJŝŶĐůƵĚĞĚĞŵŽŶƐƚƌĂƚŝŶŐƚŚĂƚƌĞƐƚƌŝĐƚĞĚ ƌĞǀĞŶƵĞƐĂƌĞƐƉĞŶƚŽŶůLJĨŽƌĂůůŽǁĞĚƉƵƌƉŽƐĞƐ͘ dŚĞŝƚLJ͛ƐĂĐĐŽƵŶƚŝŶŐƌĞĐŽƌĚƐĂŶĚďƵĚŐĞƚĂƌĞƉƌĞƉĂƌĞĚ ĂŶĚ ŵĂŝŶƚĂŝŶĞĚ ƵƐŝŶŐ Ă ŵŽĚŝĨŝĞĚ ĂĐĐƌƵĂů ďĂƐŝƐ ŽĨ ĂĐĐŽƵŶƚŝŶŐ͕ǁŚŝĐŚĨŽůůŽǁƐƚŚĞĂĐĐŽƵŶƚŝŶŐƉƌĂĐƚŝĐĞƐĨŽƌ ŐŽǀĞƌŶŵĞŶƚĂů ƵŶŝƚƐ ĂƐ ƌĞĐŽŵŵĞŶĚĞĚ ďLJ ƚŚĞ 'ŽǀĞƌŶŵĞŶƚĂůĐĐŽƵŶƚŝŶŐ^ƚĂŶĚĂƌĚƐŽĂƌĚ͘ĂƐŝĐŝƚLJ ŽƉĞƌĂƚŝŽŶƐĂƌĞĂĐĐŽƵŶƚĞĚĨŽƌŝŶƚŚĞŝƚLJ͛Ɛ'ĞŶĞƌĂů&ƵŶĚ͕ ǁŝƚŚŽƚŚĞƌĂĐƚŝǀŝƚŝĞƐĂĐĐŽƵŶƚĞĚĨŽƌŝŶƐĞƉĂƌĂƚĞĨƵŶĚƐĂƐ ƌĞƋƵŝƌĞĚ ďLJ ůĂǁ Žƌ ĚĞƚĞƌŵŝŶĞĚ ďLJ ŵĂŶĂŐĞŵĞŶƚ ĚŝƐĐƌĞƚŝŽŶ͘ 'ĞŶĞƌĂůůLJ͕ ƌĞǀĞŶƵĞƐ ĂƌĞ ƌĞĐŽƌĚĞĚ ǁŚĞŶ ŵĞĂƐƵƌĂďůĞĂŶĚĂǀĂŝůĂďůĞ͕ĂŶĚůŝĂďŝůŝƚŝĞƐĂƌĞƌĞĐŽƌĚĞĚ ǁŚĞŶŝŶĐƵƌƌĞĚ͘ /ŶĂĚŵŝŶŝƐƚĞƌŝŶŐƚŚĞŝƚLJ͛ƐĂĐĐŽƵŶƚŝŶŐƐLJƐƚĞŵƐ͕ƉƌŝŵĂƌLJ ĐŽŶƐŝĚĞƌĂƚŝŽŶ ŝƐ ŐŝǀĞŶ ƚŽ ƚŚĞ ĂĚĞƋƵĂĐLJ ŽĨ ŝŶƚĞƌŶĂů ĂĐĐŽƵŶƚŝŶŐ ĐŽŶƚƌŽůƐ͕ ǁŚŝĐŚ ŝŶĐůƵĚĞ ĂŶ ĂƌƌĂLJ ŽĨ ĂĚŵŝŶŝƐƚƌĂƚŝǀĞƉƌŽĐĞĚƵƌĞƐ͘dŚĞƐĞĐŽŶƚƌŽůƐĂƌĞĚĞƐŝŐŶĞĚ ƚŽ ƉƌŽǀŝĚĞ ƌĞĂƐŽŶĂďůĞ͕ ďƵƚ ŶŽƚ ĂďƐŽůƵƚĞ͕ ĂƐƐƵƌĂŶĐĞ ƌĞŐĂƌĚŝŶŐƚŚĞƐĂĨĞŐƵĂƌĚŝŶŐŽĨĂƐƐĞƚƐĂŐĂŝŶƐƚůŽƐƐĨƌŽŵ ƵŶĂƵƚŚŽƌŝnjĞĚƵƐĞŽƌĚŝƐƉŽƐŝƚŝŽŶ͕ĂƐǁĞůůĂƐƚŚĞƌĞůŝĂďŝůŝƚLJ ŽĨĨŝŶĂŶĐŝĂůƌĞĐŽƌĚƐĨŽƌĂĐĐƵƌĂƚĞĂŶĚĨĂŝƌƉƌĞƐĞŶƚĂƚŝŽŶŽĨ ĨŝŶĂŶĐŝĂůƌĞƉŽƌƚƐ͘dŚĞĐŽŶĐĞƉƚŽĨƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞ ƌĞĐŽŐŶŝnjĞƐƚŚĂƚƚŚĞĐŽƐƚŽĨƐƉĞĐŝĨŝĐĐŽŶƚƌŽůƐƐŚŽƵůĚŶŽƚ ĞdžĐĞĞĚƚŚĞďĞŶĞĨŝƚƐůŝŬĞůLJƚŽďĞĚĞƌŝǀĞĚĨƌŽŵĞdžĞƌĐŝƐŝŶŐ ƚŚĞ ĐŽŶƚƌŽůƐ͕ ĂŶĚ ƚŚĂƚ ƚŚŝƐ ĞǀĂůƵĂƚŝŽŶ ŶĞĐĞƐƐĂƌŝůLJ ŝŶǀŽůǀĞƐĞƐƚŝŵĂƚĞƐĂŶĚũƵĚŐŵĞŶƚƐďLJŵĂŶĂŐĞŵĞŶƚ͘/ƚŝƐ ďĞůŝĞǀĞĚ ƚŚĂƚ ƚŚĞ ŝƚLJ͛Ɛ ŝŶƚĞƌŶĂů ĂĐĐŽƵŶƚŝŶŐ ĐŽŶƚƌŽůƐ ĂĚĞƋƵĂƚĞůLJ ƐĂĨĞŐƵĂƌĚ ŝƚLJ ĂƐƐĞƚƐ ĂŶĚ ƉƌŽǀŝĚĞ ƌĞĂƐŽŶĂďůĞĂƐƐƵƌĂŶĐĞŽĨƉƌŽƉĞƌƌĞĐŽƌĚŝŶŐŽĨĨŝŶĂŶĐŝĂů ƚƌĂŶƐĂĐƚŝŽŶƐ͘ dŚĞŝƚLJŚĂƌƚĞƌĐŚĂƌŐĞƐƚŚĞŝƌĞĐƚŽƌŽĨ&ŝŶĂŶĐĞǁŝƚŚ ƚŚĞƌĞƐƉŽŶƐŝďŝůŝƚLJƚŽƐƵƉĞƌǀŝƐĞĂŶĚďĞƌĞƐƉŽŶƐŝďůĞĨŽƌ ƚŚĞĚŝƐďƵƌƐĞŵĞŶƚŽĨĂůůŵŽŶŝĞƐĂŶĚŚĂǀĞĐŽŶƚƌŽůŽǀĞƌ ĂůůĞdžƉĞŶĚŝƚƵƌĞƐƚŽĞŶƐƵƌĞƚŚĂƚďƵĚŐĞƚĂƉƉƌŽƉƌŝĂƚŝŽŶƐ ĂƌĞŶŽƚĞdžĐĞĞĚĞĚ͘dŚĞůĞǀĞůŽĨďƵĚŐĞƚĂƌLJĐŽŶƚƌŽů͕ƚŚĂƚ ŝƐ ƚŚĞ ůĞǀĞů ĂƚǁŚŝĐŚ ĞdžƉĞŶĚŝƚƵƌĞƐ ĂƌĞ ŶŽƚ ƚŽ ĞdžĐĞĞĚ ŽƵŶĐŝůĂƉƉƌŽǀĞĚĂƉƉƌŽƉƌŝĂƚŝŽŶƐ͕ŝƐĞƐƚĂďůŝƐŚĞĚĂƚƚŚĞ ĚĞƉĂƌƚŵĞŶƚ ĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞ ĐĂƚĞŐŽƌLJ ůĞǀĞů ;Ğ͘Ő͕͘ 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sW͗ĞůŝǀĞƌLJsĞƌƐƵƐWĂLJŵĞŶƚ '͗ ŶĞƌŐLJ ĨĨŝĐŝĞŶĐLJůŽĐŬ'ƌĂŶƚ K͗ ŵĞƌŐĞŶĐLJKƉĞƌĂƚŝŽŶĞŶƚĞƌ Z&͗ ĚƵĐĂƚŝŽŶĂůZĞǀĞŶƵĞƵŐŵĞŶƚĂƚŝŽŶ&ƵŶĚ 287 438 ʹͲͳͻ h͗ ĂƐƚĞƌŶhƌďĂŶĞŶƚĞƌ & &/W͗&ŝƌĞŽŵƉĂŶLJ/ŶƐƉĞĐƚŝŽŶWƌŽŐƌĂŵ &/͗&ĞĚĞƌĂůĞƉŽƐŝƚ/ŶƐƵƌĂŶĐĞŽƌƉŽƌĂƚŝŽŶ &&͗&ŝƌĞĨŝŐŚƚĞƌƐ &,>͗&ĞĚĞƌĂů,ŽŵĞ>ŽĂŶĂŶŬ &,>D͗&ĞĚĞƌĂů,ŽŵĞ>ŽĂŶDŽƌƚŐĂŐĞŽƌƉŽƌĂƚŝŽŶ &,t͗&ĞĚĞƌĂů,ŝŐŚǁĂLJĚŵŝŶŝƐƚƌĂƚŝŽŶ &/͗&ĞĚĞƌĂů/ŶƚĞƌŵĞĚŝĂƚĞƌĞĚŝƚĂŶŬ &>͗&ĞĚĞƌĂů>ĂŶĚĂŶŬ &>^͗&Ăŝƌ>ĂďŽƌ^ƚĂŶĚĂƌĚƐĐƚ &D^͗&ůĞĞƚDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ &ED͗&ĞĚĞƌĂůEĂƚŝŽŶĂůDŽƌƚŐĂŐĞƐƐŽĐŝĂƚŝŽŶ &WW͗&ĂŝƌWŽůŝƚŝĐĂůWƌĂĐƚŝĐĞƐŽŵŵŝƐƐŝŽŶ &Z ͗&ƌĞĞZĞƐŽƵƌĐĞ ŶĞƌŐLJƵƐŝŶĞƐƐ ǀĂůƵĂƚŝŽŶ &^ ͗&ŝƌĞ^ĂĨĞƚLJ ŶŐŝŶĞĞƌŝŶŐ &d͗&ĞĚĞƌĂůdƌĂŶƐŝƚĚŵŝŶŝƐƚƌĂƚŝŽŶ &d ͗&ƵůůͲdŝŵĞ ƋƵŝǀĂůĞŶƚ &z͗&ŝƐĐĂůzĞĂƌ ' 'W͗'ĞŶĞƌĂůůLJĐĐĞƉƚĞĚĐĐŽƵŶƚŝŶŐWƌŝŶĐŝƉůĞƐ 'W͗'ƌŽƐƐŽŵĞƐƚŝĐWƌŽĚƵĐƚ '&K͗'ŽǀĞƌŶŵĞŶƚ&ŝŶĂŶĐĞKĨĨŝĐĞƌƐŽĨŵĞƌŝĐĂ ''D^͗'ĞŶĞƌĂů'ŽǀĞƌŶŵĞŶƚDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ '/^͗'ĞŽŐƌĂƉŚŝĐ/ŶĨŽƌŵĂƚŝŽŶ^LJƐƚĞŵ 'DK͗'ƌŽǁƚŚDĂŶĂŐĞŵĞŶƚKǀĞƌƐŝŐŚƚŽŵŵŝƚƚĞĞ 'ED͗'ŽǀĞƌŶŵĞŶƚEĂƚŝŽŶĂůDŽƌƚŐĂŐĞƐƐŽĐŝĂƚŝŽŶ 'h͗'ĞŶĞƌĂůhƐĞĞƌƚŝĨŝĐĂƚĞƐ , ,W͗,ŝŐŚǁĂLJƌŝĚŐĞWƌŽŐƌĂŵ ,Ks͗,ŝŐŚKĐĐƵƉĂŶĐLJsĞŚŝĐůĞ ,Z͗,ƵŵĂŶZĞƐŽƵƌĐĞƐ ,^/W͗,ŝŐŚǁĂLJ^ĂĨĞƚLJ/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ ,h͗,ŽƵƐŝŶŐĂŶĚhƌďĂŶĞǀĞůŽƉŵĞŶƚ ,s͗,ĞĂƚŝŶŐͰsĞŶƚŝůĂƚŝŽŶͰŝƌŽŶĚŝƚŝŽŶŝŶŐ / /&&͗/ŶƚĞƌŶĂƚŝŽŶĂůƐƐŽĐŝĂƚŝŽŶŽĨ&ŝƌĞĨŝŐŚƚĞƌƐ /d^͗/ŶĨŽƌŵĂƚŝŽŶĂŶĚdĞĐŚŶŽůŽŐLJ^ĞƌǀŝĐĞƐ > >/&͗>ŽĐĂůŐĞŶĐLJ/ŶǀĞƐƚŵĞŶƚ&ƵŶĚ >E͗>ŽĐĂůƌĞĂEĞƚǁŽƌŬ >Zd͗>ŝŐŚƚZĂŝůdƌŽůůĞLJ D D'͗DŝůůŝŽŶ'ĂůůŽŶƐƉĞƌĂLJ D,͗DĞŐĂŚĞƌƚnj D/^͗DĂŶĂŐĞŵĞŶƚĂŶĚ/ŶĨŽƌŵĂƚŝŽŶ^LJƐƚĞŵƐͰ^ĞƌǀŝĐĞƐ D>͗DĂƐƚĞƌ>ĞĂƐĞŐƌĞĞŵĞŶƚ DKh͗DĞŵŽƌĂŶĚƵŵŽĨhŶĚĞƌƐƚĂŶĚŝŶŐ D^W͗DƵůƚŝƉůĞ^ƉĞĐŝĞƐŽŶƐĞƌǀĂƚŝŽŶWůĂŶ Dd͗DĞƚƌŽƉŽůŝƚĂŶdƌĂŶƐŝƚĞǀĞůŽƉŵĞŶƚŽĂƌĚ Dd^͗DĞƚƌŽƉŽůŝƚĂŶdƌĂŶƐŝƚ^LJƐƚĞŵ 288 439 ʹͲͳͻ E E͗EĞŐŽƚŝĂďůĞĞƌƚŝĨŝĐĂƚĞŽĨĞƉŽƐŝƚ E W͗EĞŝŐŚďŽƌŚŽŽĚZĞŝŶǀĞƐƚŵĞŶƚWƌŽŐƌĂŵ E&W͗EĂƚŝŽŶĂů&ŝƌĞWƌŽƚĞĐƚŝŽŶƐƐŽĐŝĂƚŝŽŶ K K^D^͗KƉĞŶ^ƉĂĐĞDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ W W ͗WĂƌĐĞůƐƐĞƐƐĞĚůĞĂŶ ŶĞƌŐLJ W͗WĂƌŬĐƋƵŝƐŝƚŝŽŶĂŶĚĞǀĞůŽƉŵĞŶƚ W/͗WĂǀĞŵĞŶƚŽŶĚŝƚŝŽŶ/ŶĚĞdž W&/&͗WƵďůŝĐ&ĂĐŝůŝƚŝĞƐĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞƐ W>&͗WƵďůŝĐ>ŝďƌĂƌLJ&ŽƵŶĚĂƚŝŽŶĐƚ W>dW͗WŽŝŶƚ>ŽŵĂdƌĞĂƚŵĞŶƚWůĂŶƚ WD^͗WĂƌŬƐDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ WK͗WŽůŝĐĞKĨĨŝĐĞƌ͛ƐƐƐŽĐŝĂƚŝŽŶ Wh͗WƵďůŝĐhƚŝůŝƚŝĞƐŽŵŵŝƐƐŝŽŶ Z Z^͗ZĞŐŝŽŶĂůŽŵŵƵŶŝĐĂƚŝŽŶƐ^LJƐƚĞŵ Zd͗ZĞƐŝĚĞŶƚŝĂůŽŶƐƚƌƵĐƚŝŽŶdĂdž Z͗ZĞĚĞǀĞůŽƉŵĞŶƚŐĞŶĐLJ Z&W͗ZĞƋƵĞƐƚĨŽƌWƌŽƉŽƐĂůƐ ZD^͗ZŽĂĚǁĂLJDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ Zd/W͗ZĞŐŝŽŶĂůdƌĂŶƐƉŽƌƚĂƚŝŽŶ/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵ ZtY͗ZĞŐŝŽŶĂůtĂƚĞƌYƵĂůŝƚLJŽŶƚƌŽůŽĂƌĚ ^ ^E'͗^ĂŶŝĞŐŽƐƐŽĐŝĂƚŝŽŶŽĨ'ŽǀĞƌŶŵĞŶƚƐ ^EW/W͗^ĂŶŝĞŐŽWŽŽůĞĚ/ŶƐƵƌĂŶĐĞWŽůŝĐLJ ƐƐŽĐŝĂƚŝŽŶ ^͗^ŵĂůůƵƐŝŶĞƐƐƐƐŽĐŝĂƚŝŽŶ ^Zd͗^ŽƵƚŚĂLJƵƐZĂƉŝĚdƌĂŶƐŝƚ ^'/W͗^ŵĂƌƚ'ƌŽǁƚŚ/ŶŝƚŝĂƚŝǀĞWƌŽŐƌĂŵ ^,KWW͗ ^ƚĂƚĞ ,ŝŐŚǁĂLJ KƉĞƌĂƚŝŽŶƐ ĂŶĚ WƌŽƚĞĐƚŝŽŶ WƌŽŐƌĂŵ ^>D͗^ƚƵĚĞŶƚ>ŽĂŶDĂƌŬĞƚŝŶŐƐƐŽĐŝĂƚŝŽŶ ^ZϮƐ͗^ĂĨĞZŽƵƚĞƐƚŽ^ĐŚŽŽů ^ZK͗^ĐŚŽŽůZĞƐŽƵƌĐĞKĨĨŝĐĞƌ ^dZ d,͗^ĂĨĞdŝŵĞ&ŽƌZĞĐƌĞĂƚŝŽŶ͕ ŶƌŝĐŚŵĞŶƚŶĚ dƵƚŽƌŝŶŐ ^tD>͗ ^ŽƵƚŚǁĞƐƚ ŽƌĚĞƌŶƚŝͲDŽŶĞLJ >ĂƵŶĚĞƌŝŶŐ ůůŝĂŶĐĞ d d^͗dĂdžůůŽĐĂƚŝŽŶŽŶĚƐ dZ^͗dĂdžůůŽĐĂƚŝŽŶZĞĨƵŶĚŝŶŐŽŶĚƐ d͗dƌĂŶƐƉŽƌƚĂƚŝŽŶĞǀĞůŽƉŵĞŶƚĐƚ d/&͗dƌĂŶƐƉŽƌƚĂƚŝŽŶĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ&ĞĞ dKd͗dƌĂŶƐŝĞŶƚKĐĐƵƉĂŶĐLJdĂdž dhd͗dĞůĞƉŚŽŶĞhƐĞƌƐ͛dĂdž ds͗dĞŶŶĞƐƐĞĞsĂůůĞLJƵƚŚŽƌŝƚŝĞƐ h hhd͗hƚŝůŝƚLJhƐĞƌƐdĂdž 289 440 ʹͲͳͻ s s>&͗sĞŚŝĐůĞ>ŝĐĞŶƐĞ&ĞĞ t t ͗tĞƐƚĞƌŶŽƵŶĐŝůŽĨ ŶŐŝŶĞĞƌƐ tD^͗tĂƐƚĞǁĂƚĞƌDĂŶĂŐĞŵĞŶƚ^LJƐƚĞŵ tͲd/&͗tĞƐƚĞƌŶdƌĂŶƐƉŽƌƚĂƚŝŽŶĞǀĞůŽƉŵĞŶƚ/ŵƉĂĐƚ &ĞĞ 290 441 ʹͲͳͻ 291 442 292 443 ʹͲͳͻ ĐĐƌƵĂůĂƐŝƐŽĨĐĐŽƵŶƚŝŶŐʹŵĞƚŚŽĚŽĨĂĐĐŽƵŶƚŝŶŐ ďLJǁŚŝĐŚƚƌĂŶƐĂĐƚŝŽŶƐĂƌĞƌĞĐŽŐŶŝnjĞĚǁŚĞŶƚŚĞLJŽĐĐƵƌ͕ ƌĞŐĂƌĚůĞƐƐŽĨƚŚĞƚŝŵŝŶŐŽĨĐĂƐŚƌĞĐĞŝƉƚƐĂŶĚ ĚŝƐďƵƌƐĞŵĞŶƚƐ͘ ĐĐŽƵŶƚŝŶŐ^LJƐƚĞŵʹdŚĞĐŽůůĞĐƚŝǀĞƐĞƚŽĨƌĞĐŽƌĚƐĂŶĚ ƉƌŽĐĞĚƵƌĞƐ ƵƐĞĚ ƚŽ ƌĞĐŽƌĚ͕ ĐůĂƐƐŝĨLJ͕ ĂŶĚ ƌĞƉŽƌƚ ŝŶĨŽƌŵĂƚŝŽŶŽŶƚŚĞĨŝŶĂŶĐŝĂůƐƚĂƚƵƐĂŶĚŽƉĞƌĂƚŝŽŶƐ ŽĨ ƚŚĞŝƚLJ͘ ĐĐŽƵŶƚƐ WĂLJĂďůĞ ʹ ŵŽƵŶƚƐ ŽǁĞĚ ďLJ ƚŚĞ ŝƚLJ ƚŽ ĞdžƚĞƌŶĂůĞŶƚŝƚŝĞƐĨŽƌŐŽŽĚƐĂŶĚƐĞƌǀŝĐĞƐƌĞĐĞŝǀĞĚ͘ ĐĐŽƵŶƚƐZĞĐĞŝǀĂďůĞʹŵŽƵŶƚƐĚƵĞƚŽƚŚĞŝƚLJĨƌŽŵ ĞdžƚĞƌŶĂůĞŶƚŝƚŝĞƐĨŽƌŐŽŽĚƐĂŶĚƐĞƌǀŝĐĞƐĨƵƌŶŝƐŚĞĚ͘ ĚŽƉƚĞĚƵĚŐĞƚʹdŚĞƚŝƚůĞŽĨƚŚĞďƵĚŐĞƚĨŽůůŽǁŝŶŐŝƚƐ ĨŽƌŵĂůĂĚŽƉƚŝŽŶďLJƌĞƐŽůƵƚŝŽŶŽĨƚŚĞŝƚLJŽƵŶĐŝů͘ ĚsĂůŽƌĞŵʹ/ŶƉƌŽƉŽƌƚŝŽŶƚŽǀĂůƵĞ͕ĂďĂƐŝƐĨŽƌůĞǀLJŽĨ ƚĂdžĞƐŽŶƉƌŽƉĞƌƚLJ͘ ŵĞŶĚĞĚƵĚŐĞƚʹdŚĞƚŝƚůĞŽĨƚŚĞďƵĚŐĞƚǀĞƌƐŝŽŶƚŚĂƚ ŝŶĐůƵĚĞƐ Ăůů ĂŵĞŶĚŵĞŶƚƐ ƚŽ ƚŚĞ ĚŽƉƚĞĚ ƵĚŐĞƚ ĂƉƉƌŽǀĞĚďLJŽƵŶĐŝůƚŚƌŽƵŐŚŽƵƚƚŚĞĨŝƐĐĂůLJĞĂƌ͘ ƉƉƌŽƉƌŝĂƚŝŽŶʹůĞŐŝƐůĂƚŝǀĞĂĐƚďLJƚŚĞŝƚLJŽƵŶĐŝů ĂƵƚŚŽƌŝnjŝŶŐƚŚĞĞdžƉĞŶĚŝƚƵƌĞŽĨĂĚĞƐŝŐŶĂƚĞĚĂŵŽƵŶƚŽĨ ƉƵďůŝĐĨƵŶĚƐĨŽƌĂƐƉĞĐŝĨŝĐƉƵƌƉŽƐĞ͘ ƵĚŝƚʹŶĞdžĂŵŝŶĂƚŝŽŶŽĨŝƚLJƌĞĐŽƌĚƐĂŶĚĂĐĐŽƵŶƚƐďLJ ĂŶĞdžƚĞƌŶĂůƐŽƵƌĐĞƚŽĐŚĞĐŬƚŚĞŝƌǀĂůŝĚŝƚLJĂŶĚĂĐĐƵƌĂĐLJ͘ ĂůĂŶĐĞĚ ƵĚŐĞƚ ʹ dŚĞ ĂŵŽƵŶƚ ŽĨ ďƵĚŐĞƚĞĚ ĞdžƉĞŶĚŝƚƵƌĞƐ ŝƐ ĞƋƵĂů ƚŽ Žƌ ůĞƐƐ ƚŚĂŶ ƚŚĞ ĂŵŽƵŶƚ ŽĨ ďƵĚŐĞƚĞĚ ƌĞǀĞŶƵĞƐ ƉůƵƐ ŽƚŚĞƌ ĂǀĂŝůĂďůĞ ƐŽƵƌĐĞƐ͘&Žƌ ďƵĚŐĞƚŝŶŐƉƵƌƉŽƐĞƐ͕ƚŚĞƵƐĞŽĨĐŽŶƚŝŶŐĞŶĐLJƌĞƐĞƌǀĞƐ ŽƌƵƐĞŽĨĨƵŶĚďĂůĂŶĐĞǁŝůůďĞĐŽŶƐŝĚĞƌĞĚƌĞǀĞŶƵĞŝŶ ĚĞĨŝŶŝŶŐĂďĂůĂŶĐĞĚďƵĚŐĞƚ͘ ŽŶĚʹĐĞƌƚŝĨŝĐĂƚĞŽĨĚĞďƚŝƐƐƵĞĚďLJĂŐŽǀĞƌŶŵĞŶƚŽƌ ĐŽƌƉŽƌĂƚŝŽŶ ŐƵĂƌĂŶƚĞĞŝŶŐ ƉĂLJŵĞŶƚ ŽĨ ƚŚĞ ŽƌŝŐŝŶĂů ŝŶǀĞƐƚŵĞŶƚƉůƵƐŝŶƚĞƌĞƐƚďLJĂƐƉĞĐŝĨŝĞĚĨƵƚƵƌĞĚĂƚĞ͘ ƵĚŐĞƚʹƐƉĞŶĚŝŶŐƉůĂŶĂŶĚƉŽůŝĐLJŐƵŝĚĞĐŽŵƉƌŝƐĞĚŽĨ ĂŶ ŝƚĞŵŝnjĞĚ ƐƵŵŵĂƌLJ ŽĨ ƚŚĞ ŝƚLJ͛Ɛ ƉƌŽďĂďůĞ ĞdžƉĞŶĚŝƚƵƌĞƐĂŶĚƌĞǀĞŶƵĞƐĨŽƌĂŐŝǀĞŶĨŝƐĐĂůLJĞĂƌ͘ ĂůĞŶĚĂƌ zĞĂƌ ;zͿʹdŚĞϭϮͲŵŽŶƚŚƉĞƌŝŽĚĨƌŽŵ :ĂŶƵĂƌLJƚŚƌŽƵŐŚĞĐĞŵďĞƌ͘ ĂƉŝƚĂů džƉĞŶĚŝƚƵƌĞƐʹƐƉĞĐŝĨŝĐƵŶĚĞƌƚĂŬŝŶŐŝŶǀŽůǀŝŶŐ ƉƌŽĐƵƌĞŵĞŶƚ͕ĐŽŶƐƚƌƵĐƚŝŽŶŽƌŝŶƐƚĂůůĂƚŝŽŶŽĨĨĂĐŝůŝƚŝĞƐŽƌ ƌĞůĂƚĞĚ ĞƋƵŝƉŵĞŶƚ ǁŚŝĐŚ ŝŵƉƌŽǀĞƐ͕ ƉƌĞƐĞƌǀĞƐ͕ ĞŶŚĂŶĐĞƐ Žƌ ŵŽĚĞƌŶŝnjĞƐ ƚŚĞ ŝƚLJ͛Ɛ ƉƌŽǀŝƐŝŽŶ ŽĨ ŵƵŶŝĐŝƉĂůƐĞƌǀŝĐĞƐ͕ŚĂƐĂƵƐĞĨƵůůŝĨĞŽĨĂƚůĞĂƐƚĨŝǀĞLJĞĂƌƐ͕ ĂŶĚĐŽƐƚƐŝŶĞdžĐĞƐƐŽĨΨϭϬ͕ϬϬϬ͘ ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽŐƌĂŵʹŶŽŶŐŽŝŶŐĨŝǀĞͲLJĞĂƌ ƉůĂŶ ŽĨ ƐŝŶŐůĞ ĂŶĚ ŵƵůƚŝƉůĞͲLJĞĂƌ ĐĂƉŝƚĂů ĞdžƉĞŶĚŝƚƵƌĞƐ ǁŚŝĐŚŝƐƵƉĚĂƚĞĚĂŶŶƵĂůůLJ͘ ĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽũĞĐƚ;/WͿʹŶLJŵĂũŽƌĐĂƉŝƚĂů ŝŶǀĞƐƚŵĞŶƚǁŝƚŚĂǀĂůƵĞŽĨΨϱϬ͕ϬϬϬŽƌŵŽƌĞĂŶĚĂ ŵŝŶŝŵƵŵ ƵƐĞĨƵů ůŝĨĞ ŽĨĨŝǀĞ LJĞĂƌƐ Ăƚ Ă ĨŝdžĞĚ ůŽĐĂƚŝŽŶ͘ /WƐŵĂLJŝŶĐůƵĚĞĐŽŶƐƚƌƵĐƚŝŽŶŽƌŵĂũŽƌƌĞƉĂŝƌŽĨŝƚLJ ďƵŝůĚŝŶŐƐ ĂŶĚ ĨĂĐŝůŝƚŝĞƐ ƐƵĐŚ ĂƐ ƐƚƌĞĞƚƐ͕ ƌŽĂĚƐ͕ ƐƚŽƌŵ ĚƌĂŝŶƐ͕ƚƌĂĨĨŝĐƐŝŐŶĂůƐ͕ƉĂƌŬƐ͕ĐŽŵŵƵŶŝƚLJĐĞŶƚĞƌƐ͕ĞƚĐ͘ ĂƉŝƚĂů WƌŽũĞĐƚ &ƵŶĚƐ ʹ &ƵŶĚƐ ƚŚĂƚ ĂƌĞ ƵƚŝůŝnjĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ ƌĞƐŽƵƌĐĞƐ ƵƐĞĚ ĨŽƌ ƚŚĞ ĂĐƋƵŝƐŝƚŝŽŶ ĂŶĚ ĐŽŶƐƚƌƵĐƚŝŽŶ ŽĨ ĐĂƉŝƚĂů ĨĂĐŝůŝƚŝĞƐ ďLJ ƚŚĞ ŝƚLJ͕ ǁŝƚŚ ƚŚĞ ĞdžĐĞƉƚŝŽŶ ŽĨ ƚŚŽƐĞ ĂƐƐĞƚƐ ĨŝŶĂŶĐĞĚ ďLJ ƉƌŽƉƌŝĞƚĂƌLJ ĨƵŶĚƐ͘ ůĞĂŶZĞŶĞǁĂďůĞ ŶĞƌŐLJŽŶĚƐ;Z ƐͿʹĐĞƌƚŝĨŝĐĂƚĞ ŽĨĚĞďƚŝƐƐƵĞĚďLJĂŐŽǀĞƌŶŵĞŶƚƚŽĨŝŶĂŶĐĞƌĞŶĞǁĂďůĞ ĞŶĞƌŐLJƉƌŽũĞĐƚƐ͘ ŽŵŵƵŶŝƚLJĞǀĞůŽƉŵĞŶƚůŽĐŬ'ƌĂŶƚ;'Ϳ&ƵŶĚƐʹ &ƵŶĚƐ ƌĞĐĞŝǀĞĚ ĨƌŽŵ ƚŚĞ ĨĞĚĞƌĂů ŐŽǀĞƌŶŵĞŶƚ ĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞƐ ĂƐ ƉƌĞƐĐƌŝďĞĚ ƵŶĚĞƌ ƚŚĞ ŽŵŵƵŶŝƚLJ ĞǀĞůŽƉŵĞŶƚ'ƌĂŶƚWƌŽŐƌĂŵ͘ Ğďƚ ^ĞƌǀŝĐĞ &ƵŶĚƐʹ&ƵŶĚƐƵƐĞĚĨŽƌƉĂLJŵĞŶƚŽĨ ŝŶƚĞƌĞƐƚĂŶĚƉƌŝŶĐŝƉĂůƚŽŚŽůĚĞƌƐŽĨƚŚĞŝƚLJ͛ƐǀĂƌŝŽƵƐ ĚĞďƚŝŶƐƚƌƵŵĞŶƚƐ͘ 293 444 ʹͲͳͻ ĞĨĞƌƌĞĚDĂŝŶƚĞŶĂŶĐĞʹďĂĐŬůŽŐŽĨŶĞĞĚĞĚƌĞƉĂŝƌƐƚŽ ŝƚLJ ĨĂĐŝůŝƚŝĞƐ ŝŶĐůƵĚŝŶŐ ĨĂĐŝůŝƚLJ ŵĂŝŶƚĞŶĂŶĐĞ͕ ƉĂŝŶƚŝŶŐ ĂŶĚƐƚƌƵĐƚƵƌĂůƌĞƉĂŝƌƐ͘ ĞƉƌĞĐŝĂƚŝŽŶʹdŚĞĞdžƉĞŶƐĞŝŶĐƵƌƌĞĚǁŝƚŚƚŚĞ ĞdžƉŝƌĂƚŝŽŶŽĨĂĐĂƉŝƚĂůĂƐƐĞƚ͘ ŝƌĞĐƚŽƐƚƐʹKƉĞƌĂƚŝŽŶĂůĞdžƉĞŶĚŝƚƵƌĞƐĞdžĐůƵƐŝǀĞƚŽĂ ƐƉĞĐŝĨŝĐƐĞƌǀŝĐĞŽƌƉƌŽŐƌĂŵ͘ ŝƐĐƌĞƚŝŽŶĂƌLJZĞǀĞŶƵĞʹZĞǀĞŶƵĞƐƚŚĂƚĂƌĞŐĞŶĞƌĂƚĞĚ ďLJŐĞŶĞƌĂůŽƌƐƉĞĐŝĨŝĐƚĂdžŝŶŐĂƵƚŚŽƌŝƚLJƐƵĐŚĂƐWƌŽƉĞƌƚLJ Žƌ^ĂůĞƐdĂdžĞƐ͘ ŶĐƵŵďƌĂŶĐĞʹdŚĞĚĞƐŝŐŶĂƚŝŽŶŽƌƌĞƐĞƌǀŝŶŐŽĨĨƵŶĚƐƚŽ ďƵLJĂŶŝƚĞŵŽƌƐĞƌǀŝĐĞ͘ ŶƚĞƌƉƌŝƐĞ &ƵŶĚƐ ʹ &ƵŶĚƐ ĞƐƚĂďůŝƐŚĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ ƐƉĞĐŝĨŝĐƐĞƌǀŝĐĞƐĨƵŶĚĞĚĚŝƌĞĐƚůLJďLJĨĞĞƐĂŶĚĐŚĂƌŐĞƐƚŽ ƵƐĞƌƐƐƵĐŚĂƐƐĞǁĞƌƐĞƌǀŝĐĞƐ͘dŚĞƐĞĨƵŶĚƐĂƌĞŝŶƚĞŶĚĞĚ ƚŽďĞƐĞůĨͲƐƵƉƉŽƌƚŝŶŐ͘ džƉĞŶĚŝƚƵƌĞʹdŚĞĂĐƚƵĂůŽƵƚůĂLJŽĨŵŽŶŝĞƐƐĞƚĂƐŝĚĞďLJ ĂƉƉƌŽƉƌŝĂƚŝŽŶĨŽƌŝĚĞŶƚŝĨŝĞĚŐŽŽĚƐĂŶĚƐĞƌǀŝĐĞƐ͘ & &ŝƐĐĂůzĞĂƌ;&zͿʹdŚĞƚǁĞůǀĞͲŵŽŶƚŚƉĞƌŝŽĚďĞŐŝŶŶŝŶŐ :ƵůLJ ϭƐƚ ĂŶĚ ĞŶĚŝŶŐ :ƵŶĞ ϯϬƚŚ ŽĨ ƚŚĞ ƐƵďƐĞƋƵĞŶƚ ĐĂůĞŶĚĂƌLJĞĂƌ͘ &ŝdžĞĚƐƐĞƚƐʹŶĂƐƐĞƚǁŝƚŚĂƵƐĞĨƵůůŝĨĞŐƌĞĂƚĞƌƚŚĂŶ ƚŚƌĞĞLJĞĂƌƐ͘ &ƌŝŶŐĞĞŶĞĨŝƚƐʹdŚŝƐĐŽŶƐŝƐƚƐŽĨƚŚĞĐŽƐƚƐƚŽƉƌŽǀŝĚĞ ĞŵƉůŽLJĞĞ ďĞŶĞĨŝƚƐ ƚŚĂƚ ŝŶĐůƵĚĞ ƚŚĞ ĨůĞdžŝďůĞ ďĞŶĞĨŝƚ ƉƌŽŐƌĂŵ͕ŝŶƐƵƌĂŶĐĞ͕ĂŶĚƌĞƚŝƌĞŵĞŶƚ͘ &ƵůůͲƚŝŵĞ ƋƵŝǀĂůĞŶƚWŽƐŝƚŝŽŶƐ;&d ͿʹdŚĞĐŽŶǀĞƌƐŝŽŶ ŽĨ ƉĂƌƚͲƚŝŵĞ͕ ƚĞŵƉŽƌĂƌLJ͕ Žƌ ǀŽůƵŶƚĞĞƌ ƉŽƐŝƚŝŽŶƐ ƚŽ Ă ĚĞĐŝŵĂůĞƋƵŝǀĂůĞŶƚŽĨĂĨƵůůͲƚŝŵĞƉŽƐŝƚŝŽŶďĂƐĞĚŽŶĂŶ ĂŶŶƵĂůĂŵŽƵŶƚŽĨϮ͕ϬϴϬŚŽƵƌƐǁŽƌŬĞĚ͘ &ƵŶĚʹƐĞƚŽĨŝŶƚĞƌƌĞůĂƚĞĚĂĐĐŽƵŶƚƐƚŽƌĞĐŽƌĚ ƌĞǀĞŶƵĞƐĂŶĚĞdžƉĞŶĚŝƚƵƌĞƐ͘ &ƵŶĚĂůĂŶĐĞʹdŚĞĞdžĐĞƐƐŽĨĂŶĞŶƚŝƚLJ͛ƐĂƐƐĞƚƐŽǀĞƌŝƚƐ ůŝĂďŝůŝƚŝĞƐ͘ ŶĞŐĂƚŝǀĞ ĨƵŶĚ ďĂůĂŶĐĞ ŝƐ ƐŽŵĞƚŝŵĞƐ ƌĞĨĞƌƌĞĚƚŽĂƐĂĚĞĨŝĐŝƚ͘ ' 'ĞŶĞƌĂůůLJĐĐĞƉƚĞĚĐĐŽƵŶƚŝŶŐWƌŝŶĐŝƉůĞƐʹƵŶŝĨŽƌŵ ƐĞƚ ŽĨ ŵŝŶŝŵƵŵ ƐƚĂŶĚĂƌĚƐ ĨŽƌ ĞdžƚĞƌŶĂů ĨŝŶĂŶĐŝĂů ĂĐĐŽƵŶƚŝŶŐĂŶĚƌĞƉŽƌƚŝŶŐ͘ 'ĂŶŶ ƉƉƌŽƉƌŝĂƚŝŽŶ >ŝŵŝƚʹ^ƚĂƚĞŽĨĂůŝĨŽƌŶŝĂ ŵĂŶĚĂƚĞĚ ĂƉƉƌŽƉƌŝĂƚŝŽŶ ůŝŵŝƚ ŝŵƉŽƐĞĚ ŽŶ ůŽĐĂů ũƵƌŝƐĚŝĐƚŝŽŶƐ͘ 'ĞŶĞƌĂů&ƵŶĚʹdŚĞŝƚLJ͛ƐŵĂŝŶŽƉĞƌĂƚŝŶŐĨƵŶĚƚŚĂƚŝƐ ƵƐĞĚƚŽƉĂLJĨŽƌŝƚLJƐĞƌǀŝĐĞƐ͘ 'ĞŶĞƌĂůWůĂŶʹdŚĞĨƵŶĚĂŵĞŶƚĂůƉŽůŝĐLJĚŽĐƵŵĞŶƚƚŚĂƚ ŐƵŝĚĞƐƚŚĞŝƚLJ͛ƐĨƵƚƵƌĞŐƌŽǁƚŚĂŶĚĚĞǀĞůŽƉŵĞŶƚ͘ 'ĞŶĞƌĂůZĞǀĞŶƵĞʹ^ĞĞŝƐĐƌĞƚŝŽŶĂƌLJZĞǀĞŶƵĞƐ͘ 'ŽǀĞƌŶŵĞŶƚĂů&ƵŶĚƐʹ&ƵŶĚƐƚŚĂƚĂƌĞƚLJƉŝĐĂůůLJƵƐĞĚƚŽ ĂĐĐŽƵŶƚĨŽƌƚĂdžͲƐƵƉƉŽƌƚĞĚĂĐƚŝǀŝƚŝĞƐ͘dŚĞƐĞŝŶĐůƵĚĞƚŚĞ ŐĞŶĞƌĂůĨƵŶĚ͕ƐƉĞĐŝĂůƌĞǀĞŶƵĞĨƵŶĚƐ͕ĚĞďƚƐĞƌǀŝĐĞĨƵŶĚƐ͕ ĂŶĚĐĂƉŝƚĂůƉƌŽũĞĐƚĨƵŶĚƐ͘ 'ƌĂŶƚƐʹ ĐŽŶƚƌŝďƵƚŝŽŶ ďLJ Ă ŐŽǀĞƌŶŵĞŶƚ Žƌ ŽƚŚĞƌ ŽƌŐĂŶŝnjĂƚŝŽŶƚŽƉƌŽǀŝĚĞĨƵŶĚŝŶŐĨŽƌĂƐƉĞĐŝĨŝĐƉƌŽũĞĐƚ͘ 'ƌĂŶƚƐĐĂŶĞŝƚŚĞƌďĞĐůĂƐƐŝĨŝĞĚĂƐĐĂƉŝƚĂůƉƌŽũĞĐƚƐŽƌ ƉƌŽŐƌĂŵŵĂƚŝĐ͕ĚĞƉĞŶĚŝŶŐŽŶƚŚĞŐƌĂŶƚ͘ / /ŶĚŝƌĞĐƚŽƐƚʹŽƐƚƐƚŚĂƚĂƌĞĞƐƐĞŶƚŝĂůƚŽƚŚĞŽƉĞƌĂƚŝŽŶ ŽĨƚŚĞŝƚLJďƵƚŶŽƚĞdžĐůƵƐŝǀĞƚŽĂŶLJƐƉĞĐŝĨŝĐƐĞƌǀŝĐĞŽƌ ƉƌŽŐƌĂŵ͘/ŶĚŝƌĞĐƚĐŽƐƚƐĂƌĞƉƌŝŵĂƌŝůLJĂƐƐŽĐŝĂƚĞĚǁŝƚŚ ƐƵƉƉŽƌƚĚĞƉĂƌƚŵĞŶƚƐƐƵĐŚĂƐŝƚLJůĞƌŬ͕ŝƚLJƚƚŽƌŶĞLJ͕ ĚŵŝŶŝƐƚƌĂƚŝŽŶ͕ DĂŶĂŐĞŵĞŶƚ /ŶĨŽƌŵĂƚŝŽŶ ^LJƐƚĞŵƐ ;D/^Ϳ͕,ƵŵĂŶZĞƐŽƵƌĐĞƐ͕ĂŶĚ&ŝŶĂŶĐĞ͘ /ŶĨƌĂƐƚƌƵĐƚƵƌĞʹĂƐŝĐƉŚLJƐŝĐĂůĂƐƐĞƚƐƐƵĐŚĂƐďƵŝůĚŝŶŐƐ͕ ƐƚƌĞĞƚƐ͕ƐĞǁĞƌƐ͕ĂŶĚƉĂƌŬƐ͘ /ŶƚĞƌĞƐƚ džƉĞŶƐĞʹ/ŶƚĞƌĞƐƚĐŽƐƚƐƉĂŝĚďLJŚƵůĂsŝƐƚĂŽŶ ůŽĂŶƐĂŶĚďŽŶĚƐ͘ /ŶƚĞƌŶĂů^ĞƌǀŝĐĞ&ƵŶĚƐʹ&ƵŶĚƐƚŚĂƚĂƌĞƵƐĞĚƚŽĨŝŶĂŶĐĞ ĂŶĚĂĐĐŽƵŶƚĨŽƌŐŽŽĚƐ͕ƐƉĞĐŝĂůĂĐƚŝǀŝƚŝĞƐ͕ĂŶĚƐĞƌǀŝĐĞƐ ƉĞƌĨŽƌŵĞĚ ďLJ ŽŶĞ ŝƚLJ ĚĞƉĂƌƚŵĞŶƚ ĨŽƌ ŽƚŚĞƌ ŝƚLJ ĚĞƉĂƌƚŵĞŶƚƐŽŶĂĐŽƐƚƌĞŝŵďƵƌƐĞŵĞŶƚďĂƐŝƐ͘ 294 445 ʹͲͳͻ > >ĞǀLJʹdŽŝŵƉŽƐĞŽĨĐŽůůĞĐƚĂƚĂdž͕ƐƉĞĐŝĂůĂƐƐĞƐƐŵĞŶƚƐ͕ ŽƌĐŚĂƌŐĞƐĨŽƌƚŚĞƐƵƉƉŽƌƚŽĨŝƚLJƐĞƌǀŝĐĞƐ͘ >ŝĂďŝůŝƚLJʹĞďƚŽƌŽƚŚĞƌůĞŐĂůŽďůŝŐĂƚŝŽŶƐĂƌŝƐŝŶŐŽƵƚŽĨ ƉĂƐƚƚƌĂŶƐĂĐƚŝŽŶƐƚŚĂƚǁŝůůďĞůŝƋƵŝĚĂƚĞĚ͕ƌĞŶĞǁĞĚ͕Žƌ ƌĞĨƵŶĚĞĚĂƚƐŽŵĞĨƵƚƵƌĞĚĂƚĞ͘ D DĞŵŽƌĂŶĚƵŵ ŽĨ hŶĚĞƌƐƚĂŶĚŝŶŐʹĚŽĐƵŵĞŶƚ ĚĞƚĂŝůŝŶŐƚŚĞŽƵƚĐŽŵĞƐŽĨůĂďŽƌŶĞŐŽƚŝĂƚŝŽŶƐďĞƚǁĞĞŶ ƚŚĞŝƚLJĂŶĚŝƚƐǀĂƌŝŽƵƐďĂƌŐĂŝŶŝŶŐƵŶŝƚƐ͘ DŽĚŝĨŝĞĚĐĐƌƵĂůĂƐŝƐŽĨĐĐŽƵŶƚŝŶŐʹŵĞƚŚŽĚŽĨ ĂĐĐŽƵŶƚŝŶŐ ŝŶ ǁŚŝĐŚ ƌĞǀĞŶƵĞƐ ĂƌĞ ƌĞĐŽŐŶŝnjĞĚ ŝŶ ƚŚĞ ƉĞƌŝŽĚ ƚŚĞLJ ďĞĐŽŵĞ ĂǀĂŝůĂďůĞ ĂŶĚ ŵĞĂƐƵƌĂďůĞ͕ ĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞƐ ĂƌĞ ƌĞĐŽŐŶŝnjĞĚ ŝŶ ƚŚĞ ƉĞƌŝŽĚ ƚŚĞ ĂƐƐŽĐŝĂƚĞĚůŝĂďŝůŝƚLJŝƐŝŶĐƵƌƌĞĚ͘ DƵŶŝĐŝƉĂůŽĚĞʹĐŽůůĞĐƚŝŽŶŽĨŽƌĚŝŶĂŶĐĞƐĂƉƉƌŽǀĞĚ ďLJŝƚLJŽƵŶĐŝů͘ E EŽŶͲĂƉŝƚĂů /ŵƉƌŽǀĞŵĞŶƚ WƌŽũĞĐƚ džƉĞŶĚŝƚƵƌĞƐʹ džƉĞŶĚŝƚƵƌĞƐŝŶƚŚŝƐĐĂƚĞŐŽƌLJĂƌĞĨŽƌůĂƌŐĞŵĂŝŶƚĞŶĂŶĐĞ ĐŽƐƚƐ͕ ƐƚƵĚŝĞƐ ĂŶĚ ǀĂƌŝŽƵƐ ĐŽŵŵƵŶŝƚLJ ŽƵƚƌĞĂĐŚ ƉƌŽŐƌĂŵƐ͘LJƚŚĞŝƌŶĂƚƵƌĞƚŚĞƐĞŵĂŝŶƚĞŶĂŶĐĞƵƉŬĞĞƉƐ ĂŶĚƉƌŽŐƌĂŵƐĂƌĞĞdžƉĞŶĚĞĚďĞLJŽŶĚĂŽŶĞLJĞĂƌƉĞƌŝŽĚ͘ ZĞĐŽƌĚŝŶŐƚŚĞƐĞƚLJƉĞƐŽĨĞdžƉĞŶĚŝƚƵƌĞƐŝŶĂŶŽƉĞƌĂƚŝŶŐ ƚLJƉĞ ďƵĚŐĞƚ ǁŽƵůĚ ƐŬĞǁ ƚŚĞ ĐŽŵƉĂƌŝƐŽŶ ŽĨ ďƵĚŐĞƚƐ ĨƌŽŵLJĞĂƌƚŽLJĞĂƌ͕ďĞĐĂƵƐĞŽĨƚŚŝƐ͕ƚŚĞŝƚLJĨŝŶĚƐŝƚŵŽƌĞ ĞĨĨŝĐŝĞŶƚƚŽƌĞĐŽƌĚƚŚĞƐĞƚLJƉĞƐŽĨĞdžƉĞŶĚŝƚƵƌĞƐŝŶƚŚĞ EŽŶͲĂƉŝƚĂů/ŵƉƌŽǀĞŵĞŶƚWƌŽũĞĐƚĐĂƚĞŐŽƌLJ͘ K KƉĞƌĂƚŝŶŐƵĚŐĞƚʹŽƐƚƐĂƐƐŽĐŝĂƚĞĚǁŝƚŚƚŚĞŽŶͲŐŽŝŶŐ ŵƵŶŝĐŝƉĂůƐĞƌǀŝĐĞƐ͘ KƌĚŝŶĂŶĐĞʹĨŽƌŵĂůůĞŐŝƐůĂƚŝǀĞĞŶĂĐƚŵĞŶƚďLJƚŚĞŝƚLJ ŽƵŶĐŝů͘ KƚŚĞƌ džƉĞŶĚŝƚƵƌĞƐʹůůďƵĚŐĞƚĞĚĞdžƉĞŶĚŝƚƵƌĞƐƚŚĂƚ ĚŽ ŶŽƚ ĨĂůů ŝŶƚŽ ŽŶĞ ŽĨ ƚŚĞ ĨŽůůŽǁŝŶŐ ƉƌŝŵĂƌLJ ĞdžƉĞŶĚŝƚƵƌĞ ĐĂƚĞŐŽƌŝĞƐ͗ WĞƌƐŽŶŶĞů͕ ^ƵƉƉůŝĞƐ ĂŶĚ ^ĞƌǀŝĐĞƐ͕ hƚŝůŝƚŝĞƐ͕ dƌĂŶƐĨĞƌƐ KƵƚ͕ /W ĂŶĚ EŽŶͲ/W WƌŽũĞĐƚƐ͕ĂŶĚĂƉŝƚĂů͘ W WĞƌƐŽŶŶĞů^ĞƌǀŝĐĞƐ džƉĞŶĚŝƚƵƌĞƐʹ džƉĞŶƐĞƐƌĞůĂƚĞĚƚŽ ĞŵƉůŽLJĞĞĐŽŵƉĞŶƐĂƚŝŽŶŝŶĐůƵĚŝŶŐƐĂůĂƌŝĞƐ͕ǁĂŐĞƐ͕ĂŶĚ ďĞŶĞĨŝƚƐ͘ WƌŽŐƌĂŵ ZĞǀĞŶƵĞ ʹ ZĞǀĞŶƵĞƐ ŐĞŶĞƌĂƚĞĚ ďLJ Ă ŐŝǀĞŶ ĂĐƚŝǀŝƚLJ͘ WƌŽƉŽƐĞĚƵĚŐĞƚʹdŚĞƚŝƚůĞŽĨƚŚĞďƵĚŐĞƚƉƌŝŽƌƚŽŝƚƐ ĨŽƌŵĂůĂĚŽƉƚŝŽŶďLJƌĞƐŽůƵƚŝŽŶŽĨƚŚĞŝƚLJŽƵŶĐŝů͘ WƌŽƉƌŝĞƚĂƌLJ &ƵŶĚƐʹ &ƵŶĚƐ ƵƐĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ Ă ŐŽǀĞƌŶŵĞŶƚ͛Ɛ ďƵƐŝŶĞƐƐͲƚLJƉĞ ĂĐƚŝǀŝƚŝĞƐ͕ ǁŚŝĐŚ ĂƌĞ ƐƵƉƉŽƌƚĞĚ͕ĂƚůĞĂƐƚŝŶƉĂƌƚ͕ďLJĨĞĞƐŽƌĐŚĂƌŐĞƐ͘ Z ZĞƐĞƌǀĞƐʹdŚĞƉŽƌƚŝŽŶŽĨƚŚĞ'ĞŶĞƌĂů&ƵŶĚďĂůĂŶĐĞƐĞƚ ĂƐŝĚĞĨŽƌĐŽŶƚŝŶŐĞŶĐŝĞƐ͘ ZĞƐŽůƵƚŝŽŶʹƐƉĞĐŝĂůŽƌĚĞƌŽĨƚŚĞŝƚLJŽƵŶĐŝůƚŚĂƚ ƌĞƋƵŝƌĞƐůĞƐƐůĞŐĂůĨŽƌŵĂůŝƚLJƚŚĂŶĂŶKƌĚŝŶĂŶĐĞ͘ ZĞǀĞŶƵĞ ʹ &ƵŶĚƐ ƌĞĐĞŝǀĞĚ ĨƌŽŵ ǀĂƌŝŽƵƐ ƐŽƵƌĐĞƐ ƚŽ ĨŝŶĂŶĐĞĞdžƉĞŶĚŝƚƵƌĞƐ͘ ^ ^ĞǁĞƌ &ƵŶĚƐʹ &ƵŶĚƐ ƚŚĂƚ ĂĐĐŽƵŶƚ ĨŽƌ ƌĞǀĞŶƵĞƐ ĂŶĚ ĞdžƉĞŶĚŝƚƵƌĞƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ŝƚLJ͛Ɛ ƐĞǁĞƌ ƉƌŽŐƌĂŵƐ͕ ŝŶĐůƵĚŝŶŐ ŵĂŝŶƚĞŶĂŶĐĞ ĂŶĚ ĞdžƉĂŶƐŝŽŶ ŽĨ ƚŚĞ ŝƚLJ͛Ɛ ĐŽŶǀĞLJĂŶĐĞ ƐLJƐƚĞŵ ĂŶĚ ƉĂLJŵĞŶƚ ŽĨ DĞƚƌŽ ^ĞǁĞƌ ƚƌĞĂƚŵĞŶƚĐŽƐƚƐ͘ ^ƉĞĐŝĂů ZĞǀĞŶƵĞ &ƵŶĚƐ ʹ &ƵŶĚƐ ƚŚĂƚ ĂƌĞ ƵƐĞĚ ƚŽ ĂĐĐŽƵŶƚ ĨŽƌ ƉƌŽĐĞĞĚƐ ĚĞƌŝǀĞĚ ĨƌŽŵ ƐƉĞĐŝĨŝĐ ƌĞǀĞŶƵĞƐ ƐŽƵƌĐĞƐ͕ǁŚŝĐŚĂƌĞůĞŐĂůůLJƌĞƐƚƌŝĐƚĞĚƚŽĞdžƉĞŶĚŝƚƵƌĞƐĨŽƌ ƐƉĞĐŝĂů ƉƵƌƉŽƐĞƐ͘ ;Ğ͘Ő͘ dƌĂŶƐƉŽƌƚĂƚŝŽŶ &ƵŶĚƐ͕ ƉĂƌŬŝŶŐ &ƵŶĚƐ͕WƵďůŝĐ^ĂĨĞƚLJ&ƵŶĚƐͿ ^ƉĞŶĚŝŶŐ WůĂŶ ʹ ƉƌĞůŝŵŝŶĂƌLJ ďƵĚŐĞƚ ĂƉƉƌŽǀĞĚ ďLJ ŽƵŶĐŝů ĐŽŶƚŝŶŐĞŶƚ ƵƉŽŶ ƐƵďƐĞƋƵĞŶƚ ĂĚŽƉƚŝŽŶ ŽĨ ĂƉƉƌŽƉƌŝĂƚŝŽŶƐ͘ ^ƵƉƉůŝĞƐĂŶĚ^ĞƌǀŝĐĞƐ džƉĞŶĚŝƚƵƌĞƐʹ džƉĞŶĚŝƚƵƌĞƐĨŽƌ ƐƵƉƉůŝĞƐƌĞƋƵŝƌĞĚĨŽƌƚŚĞĚĂŝůLJŽƉĞƌĂƚŝŽŶŽĨƚŚĞŝƚLJĂŶĚ ĨŽƌĐŽŶƚƌĂĐƚƵĂůĂŶĚƉƌŽĨĞƐƐŝŽŶĂůƐĞƌǀŝĐĞƐ͘ 295 446 ʹͲͳͻ d dƌĂŶƐĨĞƌƐ KƵƚ džƉĞŶĚŝƚƵƌĞƐʹ džƉĞŶĚŝƚƵƌĞƐŝŶƚŚŝƐ ĐĂƚĞŐŽƌLJĂƌĞƚŚĞĂƵƚŚŽƌŝnjĞĚĞdžĐŚĂŶŐĞƐŽĨĐĂƐŚ͕ ƉŽƐŝƚŝŽŶƐ͕ Žƌ ŽƚŚĞƌ ƌĞƐŽƵƌĐĞƐ ďĞƚǁĞĞŶ ŽƌŐĂŶŝnjĂƚŝŽŶĂů ƵŶŝƚƐ͘ h hƚŝůŝƚŝĞƐ džƉĞŶĚŝƚƵƌĞƐ ʹ džƉĞŶƐĞƐ ƌĞůĂƚĞĚ ƚŽ ƚŚĞ ĐŽŶƐƵŵƉƚŝŽŶ ŽĨ ƐĞƌǀŝĐĞƐ ŝŶĐůƵĚŝŶŐ ĞůĞĐƚƌŝĐŝƚLJ͕ ŶĂƚƵƌĂů ŐĂƐ͕ǁĂƚĞƌ͕ĂŶĚƚĞůĞƉŚŽŶĞƐĞƌǀŝĐĞƐ͘ z zŝĞůĚʹdŚĞƌĂƚĞŽĨƌĞƚƵƌŶĞĂƌŶĞĚŽŶĂŶŝŶǀĞƐƚŵĞŶƚ ďĂƐĞĚŽŶƚŚĞƉƌŝĐĞƉĂŝĚ͘ 296 447 City of Chula Vista Staff Report File#:18-0220, Item#: 8. REPORT REGARDING STATUS OF EXCLUSIVE NEGOTIATING AGREEMENT (ENA)WITH THE UNIVERSITY OF SAINT KATHERINE AND REQUEST FOR INPUT FROM CITY COUNCIL ON CITY MANGER’S PENDING NINETY (90) DAY EXTENSION OF THE ENA City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 448 449 450 451 452 453 454 455 456 457 458 City of Chula Vista Staff Report File#:18-0223, Item#: 9. CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING THE TAX FAIRNESS, TRANSPARENCY AND ACCOUNTABILITY ACT OF 2018 City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 459 RESOLUTION NO. 2018- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING THE TAX FAIRNESS, TRANSPARENCY AND ACCOUNTABILITY ACT OF 2018 WHEREAS, California's cities, counties and special districts follow strict guidelines and existing state law regarding the establishment of reasonable fees and the required voter approval of all local taxes;and WHEREAS, there is a signature-gathering campaign for a state ballot measure currently sponsored by the California Business Roundtable that would severely harm the ability of local governments to continue to provide quality services by imposing onerous roadblocks to raising local revenue to address community needs, services and infrastructure improvements; and WHEREAS, it is important for local community members, in concert with their duly- elected officials—rather than a special interest group in Sacramento--to determine the services and funding levels appropriate for their own cities; and WHEREAS, the proposed ballot measure would allow businesses to escape from their existing obligations to pay the full cost of services that they request and receive from local agencies and from which they benefit; and WHEREAS, the proposed ballot measure would shift the burden of these uncovered costs from business interests to local general funds supported by taxpayers, and thereby reduce general funds available to support police, fire, park, planning, and other community services. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that: SECTION 1. It opposes the Tax Fairness, Transparency and Accountability Act of 2018 sponsored by the California Business Roundtable on the grounds that the measure would harm the City’s ability to adequately fund services and would impede on its Charter authority;and SECTION 2.The City Clerk is hereby authorized and directed to email a copy of this resolution to the League of California Cities at cityletters@cacities.org Presented by Approved as to form by Gary Halbert Glen R. Googins City Manager City Attorney 460 City of Chula Vista Staff Report File#:18-0224, Item#: 10. CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING NEW OR EXPANDED OFFSHORE OIL AND GAS LEASES IN THE PACIFIC OCEAN AND SUPPORTING RELATED MEASURES TO PROHIBIT THE DISCHARGE OF POLLUTANTS INTO THE OCEAN City of Chula Vista Printed on 5/17/2018Page 1 of 1 powered by Legistar™ 461 RESOLUTION NO._______ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING NEW OR EXPANDED OFFSHORE OIL AND GAS LEASES IN THE PACIFIC OCEAN AND SUPPORTING RELATED MEASURES TO PROHIBIT THE DISCHARGE OF POLLUTANTS INTO THE OCEAN WHEREAS, the City values our State's ocean waters and coasts, which provide habitat to a vast array of wildlife which depend on a healthy and clean environment; and WHEREAS, the City's residents and visitors enjoy our ocean, beaches, mountains and abundance of diverse resources for recreation, exploration, and relaxation; and WHEREAS, our City's economy is reliant on a healthy ocean for our residents, visitors, and maritime professionals; and WHEREAS, the City has a long history of caring for our coastal waters, bay, and environment by adopting City policies and practicing environmental stewardship; and WHEREAS, the City is a member of the Port of San Diego, which includes two maritime cargo terminals, two cruise ship terminals, 22 public parks and hundreds of businesses around San Diego Bay; and WHEREAS, the City is home to over 500 acres of coastal property along the Pacific coast, which includes a marina, bayfront parks, and the Living Coast Discovery Center, a part of the San Diego Bay National Wildlife Refuge; and WHEREAS, the City’s bayfront is the subject of the Chula Vista Bayfront Master Plan, which contemplates recreational and residential development, along with the establishment of ecological buffers to protect wildlife habitat, species and other coastal resources; and WHEREAS, there is a growing body of evidence confirming that intense sound produced by human generated noise such as acoustic testing used in oil and gas exploration negatively impacts marine mammals, fish, squid, and crab; and WHEREAS, in 1969, a well failure off the coast of Santa Barbara fouled coastal waters with an estimated 100,000 barrels of crude oil and caused catastrophic environmental damage, helping launch the modern environmental movement; and WHEREAS, in 1970, with bipartisan support, President Nixon signed the National Environmental Policy Act on January 2nd, delivered a call to make "the 1970's a historic period when, by conscious choice (we) transform our land into what we want it to become" in his State of the Union Address, and ended the year with the creation of the Environmental Protection Agency an independent agency to regulate the environment; and 462 WHEREAS, oil drilling presents a clear and ever-present danger to the health and safety of residents, businesses and economies, with the threat of an oil spill potentially wreaking havoc on ecosystems, human health, and economic activities; and WHEREAS, the 2010 BP Deep Water Horizon disaster spilled an estimated 4.9 million barrels of crude oil into the Gulf of Mexico and shores of the Gulf Coast of the United States; and WHEREAS, in 2015, a pipeline servicing offshore oil platforms burst and fouled the coast north of Santa Barbara with an estimated 3,400 barrels of crude oil, damaging wildlife and coastal recreation; and WHEREAS, there have been no new offshore oil and gas leases in California since the 1969 disaster; and WHEREAS, in December 2016, President Obama signed an executive order that banned any new oil and gas drilling off the coast of California under Section 12(a) of the Outer Continental Shelf Lands Act; and WHEREAS, On April 28, 2017, President Trump issued an Executive Order called Implementing an America-First Offshore Energy Strategy, which establishes a policy to encourage energy exploration and production on the outer Continental Shelf (OCS) and restarts the 2017-2022 five year lease program potentially opening up Arctic waters and millions of coastal acres off U.S. shores to oil and gas drilling, fracking, and other well-stimulation, putting California' s coastal resources at risk of more oil spills, increased greenhouse gas emissions, dependence on fossil fuels, and a delay in the movement toward greater reliance on renewable energy; and WHEREAS, the City’s residents and visitors enjoy California’s beaches and the Pacific Ocean for recreational, commercial, and educational activities, all of which support our local economy; and WHEREAS, our residents value our state’s ocean and coastal waters, which provide habitat to a vast array of wildlife, including fish, whales, sea turtles, and birds that depend on a healthy and clean environment; and, WHEREAS, offshore oil and gas drilling and exploration off the Pacific coast puts these coastal resources, and the communities and industries that depend on them, at risk from oil spills and other damage; and, WHEREAS, significant efforts to maintain the quality of our coastal waters amidst multiplicative impacts from sewage, industrial uses, and climatic impacts are being enacted by City; and WHEREAS, the Administration has proposed an expansion of offshore oil and gas leasing to new areas which have largely been off-limits to new federal leasing, including the Pacific Coast; and 463 Resolution No. Page 3 WHEREAS, new federal offshore oil and gas leases have not been granted off the coast of California since 1984 waters due to the unacceptably high risk of damage and disruption to the marine environment; and WHEREAS, the U.S. Department of Interior’s 2017-2022 Five-Year Outer Continental Shelf (OCS) Leasing Program adopted as of November 18, 2016 contained no proposed offshore drilling along the Pacific Coast, and; WHEREAS, the Interior Department’s Bureau of Ocean Energy Management (BOEM) is considering an expanded Five-Year OCS Leasing Program for the years 2019-2024, in response to which this resolution is hereby submitted, and; WHEREAS, the City is opposed to inclusion of any offshore drilling tracts in any OCS Planning Area on the Pacific Coast in the pending 2019-2024 DPP and any other future National Programs, and WHEREAS, the Governor of California, the Attorney General, the State Senate, the State Lands Commission, the Coastal Commission, the Fish and Game Commission, along with a growing number of cities, have taken a stand against new federal offshore oil and gas leases in the Pacific Ocean; and WHEREAS, opening new areas off California’s coast to offshore drilling will deepen the state’s dependence on fossil fuels and undermine its efforts to address climate change. NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Chula Vista hereby supports, with respect to all State and Federal waters in the Pacific Ocean bordering the United States: 1) a ban on new drilling, fracking, and related techniques, 2) a prohibition on new or expanded oil and gas leases; 3) a phase-out of all oil and gas extraction, and 3) a framework for responsible renewable energy development. The City Clerk shall forward a copy of this Resolution to Secretary Ryan Zinke, U.S. Department of Interior. Presented by Approved as to form by Gary Halbert Glen R. Googins City Manager City Attorney 464 465 466