HomeMy WebLinkAbout2011/01/18 Item 9CITY CCJUNCIL &~
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AGENDA
STATEMENT
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JANUARY 18, 2011,
ITEM TITLE: CONSIDERATION OF AUDITED FINANCIAL STATEMENTS FOR
FISCAL YEAR ENDED JiJNE 30, 2010
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
AGENCY ACCEPTING THE 2009/2010 FISCAL YEAR END
FINANCIAL REPORTS
SUBMITTED BY: DIRECTOR OF FIN N E/TREASURER ~~ ~~ ~~ ~'
REVIEWED BY: CITY MANAGE
ASSISTANT CITY ANAGER Gj~
4/STHS VOTE: YES ~ NO ~X
SUMMARY
Presented for City Council and Redevelopment Agency information and acceptance are the Audited
Financial Statements for the fiscal yeaz ended June 30, 2010, as prepared by the independent audit
firm of Caporicci & Larson. The audit reports submitted for the City and Agency have received
unqualified (clean) opinions from the independent audit firm.
The Chula Vista Redevelopment Agency is required to prepare an Annual Report for
consideration by its Board per California State Health and Safety Code Section 33080.1. The
reports provide detailed information regazding the activities of the Redevelopment Agency, and
aze required to be presented to the legislative body at this time.
Additionally, California State Health and Safety Code Section 33334.3(d) and (e) authorize
agencies to charge costs of planning and administering affordable housing programs to their Low
and Moderate Income Housing Fund (Housing Fund). Agencies must annually determine that
planning and administrative chazges are necessary for the production, improvement, or preservation
of affordable housing. The findings aze presented in this report for approval.
ENVIRONMENTAL REVIEW
The Environmental Review Coordinator has reviewed the proposed activity for compliance with the
California Environmental Quality Act (CEQA) and has determined that filing of the audited
financial statements is not a "Project" as defined under Section 15378 of the State CEQA
Guidelines because it will not result in a physical change to the environment; therefore, pursuant to
Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA.
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January 18, 2011 Item
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RECOMMENDATION
Council and Agency accept the fiscal year 2009-2010 Financial Statements. --
The Agency adopt the resolution.
BOARDS/COMMISSION RECOMMENDATION
On December 9, 2010, the CVRC board recommended the Redevelopment Agency accept the
report.
DISCUSSION
Pursuant to the City Charter Section 1017, an annual audit is performed of the City's financial
records by an independent accounting firm. The report is included as Attachment 1. The firm of
Caporicci & Larson has examined the general purpose financial statements of the City of Chula
Vista and the Redevelopment Agency and has issued their opinion that those statements "present
fairly, in all material respects, the financial position of the City as of June 30, 2010 and the results of
its operations and cash flows for the year then ended in conformity with generally accepted
accounting principles".
The audit did not result in any material adjustments to previously reported year-end figures for the
General Fund. The General Fund available fund balance was verified to be $10.2 million as of June
3Q, 2010. The $10.2 million available fund balance is an increase from the amount reported for the
prior year ending balance. This reserve level represents 7.3 percent of the operating budget.
In order to form a basis for their opinion, Caporicci & Larson, evaluated the internal control
procedures of the City and found no reportable conditions.
This was Caporicci & Lazson's second yeaz serving as the City's auditors. The audit firm was very
professional and efficient in their work, and provided insights and ideas that were incorporated into
the City's Consolidated Annual Financial Report (CAFR).
Independent Financial Audit Report
Pursuant to the City Charter and California State Health and Safety Code, an annual audit is
performed of the Redevelopment Agency's financial records by an independent accounting firm.
The report is included as Attachment 2. The firm of Caporicci & Larson has examined the
general purpose financial statements of the Redevelopment Agency of the City of Chula Vista,
and issued their opinion that those statements "present fairly, in all material respects, the
financial position of the Agency as of June 30, 2010, and the results of its operations and cash
flows for the year then ended in conformity with generally accepted accounting principles." The
audit did not result in any material adjustments to previously reported yeaz-end figures.
In order to form a basis for their opinion, Caporicci & Larson, evaluated the internal control
procedures of the Agency and found no material weaknesses.
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Januazy 18, 2011 Item
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Report of Financial Transactions of Community Redevelopment Agencies
The Report of Financial Transactions of Community Redevelopment Agencies (State
Controller's Report), included as Attachment 3, provides a summary of the financial transactions
of the Redevelopment Agency during FY 2009/2010. Additionally, the Agency must provide a
description of the properties that it owns, a summary of Agency expenditures in the previous
fiscal year that have contributed to alleviating blight, and a list and status of all loans made by
the Agency that aze in default or out of compliance.
State Department of Housing and Community Development Schedules A-E
Provided as Attachment 4 aze the HCD schedules which report on the status and use of the Low
and Moderate Income Housing Funds and housing activities for FY 2009/2010.
Annual Administrative Expenditures
Low and Moderate Income Housing Fund administrative expenses for FY 2009/2010 total
$697,488. This dollar amount includes the following expenses:
• City staff costs with benefits and Citywide overhead,
• General office expenses, such as copier leasing and supplies,
Professional Services such as legal and audit,
• Outside consultants such as the administrator of the Regional Mortgage Credit
Certificate (MCC) Program, and
• Project specific oversight, such as staff and outside counsel work on The
Landings II
State code allows for Housing Funds to be spent on agency planning and administration. City
staff that work on Housing programs and projects track their time in a Project Accounting
system, and charge to various sources according to the type of work, program and/or project.
Only costs attributable to the Housing Fund have been included for reimbursement. Housing
Fund expenditures for planning and administration are necessary for the production,
improvement or preservation of affordable housing. Such a finding is necessary, and is included
in the attached Resolution.
DECISION MAKER CONFLICT
Staff has determined that the action contemplated by this item is ministerial, secretarial, manual,
or clerical in nature and does not require the City 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.).
CURRENT YEAR FISCAL IMPACT
There is no fiscal impact to the City or Agency from this action. The contract for audit services
totaled $95,000 for the year reported.
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January 18, 2011 Item
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The administrative costs of $697,488 have already been paid directly by or transferred from the
Housing Fund.
ON GOING FISC-AL IMPACT
"There is no fiscal impact in future years.
ATTACHMENTS
1. Fiscal Year 2009-10 Comprehensive Annual Financial Report
2. Fiscal Year 2009-10 Redevelopment Agency, Basic Financial Statements and Auditor's Report
3. Report of Financial Transactions of Community Redevelopment Agencies;
4. State Department of Housing and Community Development Schedules A-E
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CHI
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Comprehensive Annual
Financial Report
For The Fiscal Year Ended
June 30, 2010
Compiled under the direction of
Maria Kachadoorian
Director of Finance/Treasurer
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City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2010
Table of Contents
Pace
INTRODUCTORY SECTION
Table of Contents ....................................................................................................................................................i
Letter of Transmittal ..............................................................................................................................................v
Principal Officials ...................................................................................................................................................xiv
Organization Chart .................................................................................................................................................xv
Certificate of Achievement for Excellence in Financial Reporting - GFOA ...................................................xvi
FINANCIAL SECTION
Independent Auditors' Report ............................................................................................................................1
Managements Discussion and Analysis (Required Supplementary Information) .................................3
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets ............................................................................................................................18
Statement of Activities and Changes in Net Assets ..............................................................................20
Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ........................................................................................................................ ..............26
Reconciliation of the Governmental Funds Balance Sheet
to the Govemment-Wide Statement of Net Assets .................................................... ..............29
Statement of Revenues, Expenditures and Changes in Fund Balances ........................ ..............30
Reconciliation of the Governmental Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government-Wide
Statement of Activities and Changes in Net Assets .................................................. ..............32
Proprietary Fund Financial Statements:
Statement of Net Assets ....................................................................................................... ..............36
Statement of Revenues, Expenses and Changes in Net Assets ...................................... ..............37
Statement of Cash Flows ...................................................................................................... ..............38
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Assets ..................................................................................... ..............40
Notes to Basic Financial Statements ............................................................................................................41
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City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2010
Table of Contents, Continued
Page
Required Supplementary Information:
Budgetary Information ....................................................................................................................................94
Budgetary Comparison Schedules:
General Fund ..............................................................................................................................................95
Sundry Grants Special Revenue Fund ....................................................................................................96
Redevelopment Agency Special Revenue Fund ...................................................................................97
Schedules of Funding Progress:
PERS ............................................................................................................................................................98
Other Postemployment Benefits ..............................................................................................................98
Supplementary Information:
Non-Major Governmental Funds
Combining Balance Sheet .............................................................................................. ...........................104
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances ..................................................................................................... ............................108
Statement of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual Schedules:
Redevelopment Agency Debt Service Fund ....................................................... ............................113
City Debt Service Fund .......................................................................................... ............................114
Transportation Grants Special Revenue Fund .................................................... ............................115
Parking Meter Special Revenue Fund .................................................................. ............................116
Traffic Safety Special Revenue Fund .................................................................... ............................117
Town Centre I Special Revenue Fund .................................................................. ............................118
Open Space Districts Special Revenue Fund ...................................................... ............................119
Housing Programs Special Revenue Fund .......................................................... ............................120
Traffic Signals Special Revenue Fund .................................................................. ............................121
Transportation Sales Tax Special Revenue Fund ............................................... ............................122
Storm Drain Special Revenue Fund ..................................................................... ............................123
Housing Authority Special Revenue Fund ......................................................... ............................124
Public Financing Authority Debt Service Fund .................................................. ............................125
1994 POB Debt Service Fund ................................................................................. ............................126
Notes Payable Debt Service Fund ........................................................................ ............................127
Lease Payable Debt Service Fund ......................................................................... ............................128
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City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2010
Table of Contents, Continued
Pace
Supplementary Information, Continued:
Non-major Enterprise Funds:
Combining Statement of Net Assets .......................................................................................................130
Combining Statement of Activities and Changes in Net Assets .........................................................131
Combining Statement of Cash Flows .....................................................................................................132
Internal Service Funds
Combining Statement of Net Assets .......................................................................................................134
Combining Statement of Activities and Changes in Net Assets .........................................................135
Combining Statement of Cash Flows .....................................................................................................136
Fiduciary Funds:
Statement of Changes in Assets and Liabilities .....................................................................................138
STATISTICAL SECTION
Table of Contents ....................................................................................................................................................139
Financial Trends
Net Assets by Component -Last Nine Fiscal Years ...................................................................................140
Changes in Net Assets -Last Nine Fiscal Years ..........................................................................................141
Fund Balances of Governmental Funds -Last Nine Fiscal Years .............................................................143
Changes in Fund Balance of Governmental Fund -Last Nine Fiscal Years ...........................................144
Revenue Capacity
Assessed Value and Estimated Actual Value of Taxable Property -Last Ten Fiscal Years ..................145
Direct and Overlapping Property Tax Rates -Last Ten Fiscal Year .........................................................146
Principal Property Taxpayers -Current and Nine Years Ago ..................................................................147
Property Tax Levies and Collections -Last Ten Fiscal Years ....................................................................148
Debt Capacity
Ratios of Outstanding Debt by Type -Last Ten Fiscal Years ....................................................................149
Ratios of General Bonded Debt Outstanding -Last Ten Fiscal Years ......................................................150
Direct and Overlapping Debt .........................................................................................................................151
Legal Debt Margin -Last Ten Fiscal Years ..................................................................................................152
Pledged-Revenue Coverage -Last Ten Fiscal Years ..................................................................................154
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City of Chula Vista
Comprehensive Annual Financial Report
For the year ended June 30, 2010
Table of Contents, Continued
Page
STATISTICAL SECTION. Continued
Demographic and Economic Information:
Demographic and Economic Statistics -Last Ten Calendar Years ...........................................................156
Principal Employers -Current and Nine Years Ago ..................................................................................158
Operating Information:
Full-Time and Part-Time City Employees by Function -Last Ten Fiscal Years .....................................159
Operating Indicators by Function -Last Ten Fiscal Years .........................................................................160
Capital Assets Statistics by Function -Last Ten Fiscal Years ....................................................................161
Independent Auditors' Report on Internal Control Over Financial Reporting
And On Compliance and Other Matters Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards .....................................163
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CHUL~AVISiA Finance Department
January 12, 2011
To the Honorable Mayor, Members of the City Council
And Citizens of the City of Chula Vista, California
The Annual Financial Report (the Report) of the City of Chula Vista for the fiscal year ended June
30, 2010 is hereby submitted in accordance with City Charter section 1017 and section 25253 of
the Government Code of the State of California.
Purpose and Management Responsibility. This report consists of management's representations
concerning the finances of the City of Chula Vista (City). Consequently, management assumes full
responsibility for the completeness and reliability of all of the information presented in this report.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft or misuse and to compile sufficient reliable information for the
preparation of the City's financial statements inconformity with U.S. generally accepted accounting
principles (GAAP).
Because the cost of internal controls should not outweigh their benefits, the City's comprehensive
framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management,
we assert that, to the best of our knowledge and belief, this financial report is complete and reliable
in all material respects.
Audited Financial Statements. The City's financial statements have been audited by Caporicci
and Larson, a firm of licensed certified public accountants. The goal of the independent auditwas
to provide reasonable assurance that the financial statements of the City for the fiscal year ended
June 30, 2010 are free of material misstatement. The independent audit involved examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements; assessing
the overall accounting principles used and significant estimates made by management; and
evaluating the overall financial statement presentation.
The independent auditor concluded, based upon the audit, that there was a reasonable basis for
rendering an unqualified opinion ("clean") that the City's financial statements for the fiscal year
ended June 30, 2010, are fairly presented in conformity with GAAP. The independent auditors'
report is presented as the first component of the financial section of this report. The
professionalism and knowledge exhibited by Caporicci and Larson during their audit work is greatly
appreciated.
276 Foarth :venue, Chula Vista, CA 91970 ~ www.chulavistaca.gov ~ (619) 641-5290 ~ Pax (519) 585-5685
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Organization. This report is presented in three sections: introductory, financial and statistical.
1. The Introductory section includes this transmittal memorandum and other information to
familiarize the reader with the City: a directory of officials and the City's organization chart.
2. The Financial section consists of five parts: the independent auditors' report; management's
discussion and analysis; the basic financial statements; required supplementary information;
non-major governmental funds and agency funds.
3. Lastly, the Statistical section includes selected financial and demographic information, generally
presented on a multi-year basis.
GAAP require that management provide a narrative introduction, overview and analysis to
accompany the basic financial statements in the form of Management's Discussion and Analysis
(MD&A). As noted above, the MD&A appears in the Financial Section. This letter of transmittal is
designed to complement MD&A and should be read in conjunction with it.
Single Audit for Federal Grant Programs
The independent audit of the financial statements of the City was part of a broader, federally
mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The
standards governing Single Audit engagements require the independent auditor to report not only
on the fair presentation of the financial statements, but also on the audited government's internal
controls and compliance with legal requirements, with special emphasis on internal controls and
legal requirements involving the administration of federal awards. This separately prepared report
is available from the Finance Department upon request.
GOVERNMENT
Chula Vista was incorporated in 1911, and functions under a City Charter with aCouncil/Manager
form of government. The City is governed by a four member Council and a Mayor, who serve four
year overlapping terms, and are elected on a citywide basis. The City Council appoints the City
Manager, City Attorney and City Clerk. Municipal services provided include police, fire, parks,
recreation, libraries, planning & building, housing programs, street and drainage construction &
maintenance, sewer services, etc.
THE REPORTING ENTITY
(Activities included in the Report)
The Report includes all activities carried out by the City as a legal entity, and also includes the
activities of certain other entities for which the City Council is financially accountable as determined
underthe guidelines of the Governmental Accounting Standards Board. Although legally separate
entities, these so called "component units' are under the City's umbrella of accountability, and
therefore, their financial position and results of operations are reflected in the Report.
The component units included in the Report are:
The Redevelopment Agency of the City of Chula Vista
The Chula Vista Industrial Development Authority
The Chula Vista Public Financing Authority
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ACCOUNTING SYSTEMS AND BUDGETARY CONTROL
The basic financial statements are presented on an "economic resources' measurement focus and
the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital
assets as well as infrastructure assets and long-term liabilities, are included in the accompanying
Statement of Net Assets. The Statement of Activities presents changes in net assets.
Under the accrual basis of accounting, revenues are recognized in the period in which they are
earned while expenses are recognized in the period in which the liability is incurred. All
governmental funds are accounted for on a spending or "currentfinancial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the balance sheet. The Statement of Revenues, Expenditures and
Changes in Fund Balances present increases (revenue and other financing sources) and decreases
(expenditures and other financing uses) in net current assets. Under the modified accrual basis of
accounting, revenues are recognized in the accounting period in which they become both
measurable and available to finance expenditures of the current period.
In administering the City's accounting systems, primary consideration is given to the adequacy of
internal accounting controls, which include an array of administrative procedures. These controls
are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of
assets against loss from unauthorized use or disposition, as well as the reliability of financial
records for accurate and fair presentation of financial reports. The concept of reasonable
assurance recognizes that the cost of specific controls should not exceed the benefits likely to be
derived from exercising the controls, and that this evaluation necessarily involves estimates and
judgments by management. It is believed that the City's internal accounting controls adequately
safeguard City assets and provide reasonable assurance of proper recording of financial
transactions.
The City Charter assigns the Director of Finance with the responsibility to supervise and be
responsible for the disbursement of all monies and have control over all expenditures to ensure that
budget appropriations are not exceeded. The level of budgetary control, that is, the level at which
expenditures are not to exceed Council approved appropriations, is established by department at
the category level. An encumbrance (commitment) accounting system is utilized as a technique to
enhance budgetary control during the year. Appropriations encumbered (committed) at year end
are carried forward if authorized and are available to be used for those commitments during the
subsequent year while unspent, unencumbered appropriations lapse at year end and become
generally available for re-appropriation the following year.
The City Council adopts the formal budget before the beginning of each fiscal year and may amend
it throughout the year as necessary. Expenditures may not exceed budgeted figures at the
category level (Personnel, Supplies and Services, Other Expenses, Capital) by department.
Financial status reports summarizing the year to date General Fund revenues and expenditures are
presented to the City Council on a quarterly basis.
LOCAL ECONOMY AND PROSPECTS FOR THE FUTURE
The City of Chula Vista, incorporated in 1911, is a city of great diversity, both geographically and
demographically. It is a community of many choices and opportunities. The City of Chula Vista is
located eight miles south of the City of San Diego and seven miles north of the Mexico border.
Chula Vista's city limits cover approximately 50 square miles, which spans from the beautiful
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shoreline of San Diego Bay to the breathtaking mountain views in the eastern section of the city.
Chula Vista residents enjoy all the benefits of a major city along with small town friendliness,
affordable housing and near perfect weather. The most recent data available from the San Diego
Association of Governments (SANDAG) estimates that the median income in Chula Vista is
$74, 881.
The City of Chula Vista, with a population of approximately 237,595, is the second largest
community in San Diego County. SANDAG projects that the City of Chula Vista will reach a
population of approximately 316,445 by the year 2030. The California State Department of Finance
reports that from 2009 to 2010 the City added 3,903 new residents reflecting a 1.56 percent rate of
growth. SANDAG's 2030 Growth Forecast indicates that the South County sub region will continue
to host a substantial amount of the region's projected growth over the next 20 years, primarily
through new development in the eastern portion of the City.
The number of residential units built hit an all time high during calendar years 1999-2004. Due to
the significant slow down in the housing market, those numbers have dramatically dropped
beginning in 2005. Thefollowing graph shows the actual number of housing units completed during
the last 10 calendar years.
Residential Building Units
Fiscal Years 2000101 to 2009/10
®Single Family ^Multi-Family
Propertv TBXBS:
Under State law since 1979, property taxes for general government purposes are limited to one
percent of the market value of the property assessed. Property tax is the City's largest revenue
source, representing 19.3 percent of the General Fund revenue in fiscal year 2010.
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1/13/2011
Property Tax Revenue
Fiscal Years 2000101 to 2009/10
(in millions) --
The chart illustrates the significant increases in property tax revenue the City has received as a
result of the rapid development in the east. Property tax revenue has almost quadrupled over the
ten-year period. This increase in property tax revenue is of course driven by like increases in the
assessed values in the City. The City's assessed values have grown at historical rates until
recently with the largest percentage increase of 20 percent occurring in fiscal year 2006. Based on
the most recent County Assessor Annual Valuation Report, the assessed values in Chula Vista
have decreased by 3.76 percent. The City is anticipating a further decline in assessed values due
to a number of factors such as the drop in housing prices, foreclosures and Proposition 8
reassessments. However the City does expect development to return at moderate levels at some
point in the future.
Assessed Values
Fiscal Years 1999/2000 to 2010111
~ i I ~ ~ 20%
_ $25
m 15%
$20
' 10%
$15 5%
$10 0%
-5%
$5
-10%
$0 -15%
2000 20012002 2003 2004 2005 2006 2007 2008 2009 2010 2011
f~ Assessed Value -~-% Growth CV -~% Growth County
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2070
1/13/2011
Sales Taxes:
The City receives 1 percent in sales and use tax revenue from all taxable retail sales occurring
within City limits. These funds are collected by the State along with their 7.5 percent component of
the sales and use tax and 0.25 percent designated for transportation for a total sales tax rate within
San Diego County of 8.75 percent. Sales and use tax revenue is the City's second largest General
Fund revenue source. In fiscal year 2010, sales taxes represented 17.8 percent of total General
Fund revenues.
Sales Tax Revenues
Fiscal Years 2000101 to 2009/10
(in millions)
The growth in retail operators has made significant contributions to Chula Vista's sales tax base.
Over aten-year period between 2000-2009, Chula Vista's sales tax revenues have grown
approximately 51 percent (in current dollars) with most of that growth occurring after fiscal year
1997. Due to the recession's effects the City's sales tax revenues have dropped by -7.4 percent
from the previous year. It is anticipated that sales tax revenues will continue to grow at some point
in the future, however that growth may not occur for several years due to the state of the national
and local economies.
Lono-Term Financial Plannin
As previously discussed the City is currently experiencing significant economic hardships. Long-
term, the City is in a position to benefit from a vibrant and growing San Diego area economy. The
City considers it essential to fund its financial reserves at a level that can endure a limited economic
recession without impacting service levels and capital maintenance programs. The Council's
General Fund minimum reserve level policy of 8 percent, which became effective in 1996, was
established to prudently protect the fiscal solvency of the City. Reserves are important in order to
mitigate the negative impact on revenues from economic fluctuations, to withstand State budget
grabs and to fund unforeseen expenditure requirements.
However, the prolonged recession has impacted the City's development revenues, sales tax and
property taxes significantly. The City took immediate action by implementing a hiring freeze and
across the board cuts and by doing so was able to mitigate any impacts to General Fund reserves.
As a result the City's General Fund reserve increased from 6.7 percent to 7.3 as of June 30, 2010
due to one-time revenues related to Proposition 42 (transportation revenue) staff time
reimbursements.
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On November 5, 2009, the City Council approved a revised General Fund reserve policy. This new
policy increases the desired reserve level to a minimum of 23 percent of General Fund operating
expenditures and is composed of the following three components:
General Fund Operating Reserve (15 %). The operating reserve will ensure that the City's
finances are managed in a manner which will (1) continue to provide for the delivery of quality
services, (2) maintain and enhance service delivery as the community grows in accordance with
the General Plan, (3) minimize or eliminate the need to raise taxes and fees because of
temporary revenue shortfalls, and (4) establish the reserves necessary to meet known and
unknown future obligations and ability to respond to unexpected opportunities.
2. Economic Contingency Reserve (5%). The economic contingency reserve represents monies
set aside to mitigate service impacts during a significant downturn in the economy which
impacts City revenues such as sales tax, property tax, business license tax and other revenues.
3. Catastrophic Event Reserves (3%). This reserve will set aside funds for unanticipated
expenditures related to a major natural disaster in the City.
The new General Fund Reserve policy of 23 percent is a long-term goal to be achieved within the
next ten years.
During fiscal year 2011, the Finance Department updated the General Fund Five Year Financial
Forecast to assess the General Fund's ability over the next five years to continue current service
levels based on anticipated growth. The forecast anticipated minimal to no growth for the next five
years and identified a structural imbalance that resulted in budgetary cuts citywide. The Finance
Department will continue to update the five-year forecast, as projections are refined. This forecast
will serve as the foundation for the City's Long Term Financial Plan, which is in process. The
Government Finance Officers Association (GFOA) recognizes the importance of combining the
forecasting of revenues and expenditures into a single financial forecast. The GFOA also
recommends that a government should have a financial planning process that assesses long-term
financial implications of current and proposed policies, programs, and assumptions that develop
appropriate strategies to achieve its goals.
CASH MANAGEMENT POLICIES
In order to maximize investment leverage, it is the City's practice to "pool" available cash from all
Funds for investment purposes. In accordance with the adopted investment policy, available cash
is invested with the goal of safety, meaning protection of principal, as the first priority, ensuring
adequate liquidity as the second priority, and maximizing yield as the third priority. The average
yield on the pooled investment portfolio during the fiscal year ending June 30, 2010 was 1.63
percent, a decrease from the prior year yield of 3.2 percent due to a decreasing interest rate
environment.
RISK MANAGEMENT
The City isself-insured for the first $500,000 per occurrence for its general liability losses including
personal injury, property damage, errors and omission, automobile liability and employment
practices liability. For those losses between $500,000 and $2,000,000 per occurrence, the City
pools its liabilities through its membership in the San Diego Pooled Insurance Program Authority
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(SANDPIPA). Insurance for losses in excess of the $2,000,000 up to $45,000,000 is purchased on
a group basis by the member cities.
SANDPIPA is a joint powers authority comprised of twelve San Diego County cities. The Board of
Directors consists of one staff representative (and an alternative) from each of the member cities as
designated by the city's governing body. Each member city has equal representation on the Board
of Directors. The Board of Directors is liable for all actions of SANDPIPA.
The City is self-insured for the first $1.0 million per occurrence for worker's compensation liabilities.
Excess workers' compensation coverage is obtained through participation in the CSAC Excess
Insurance Authority's Excess Workers' Compensation Program. As of June 30, 2010, there is 160-
memberentities participating in the program that offers per occurrence coverage up to $5.0 million
through pooled resources and from $5.0 million to statutory limits via group purchased excess
insurance policies.
The probable amounts of loss as estimated by the City's Risk Manager and Attorney, including an
estimate ofincurred-but-not reported losses, have been recorded as liabilities in the basic financial
statements. There were no reductions in insurance coverage from the prior year and there were no
insurance settlements, which exceeded coverage in each of the past three years. Additional
information on the City's risk management activity can be found under note disclosure 10 to the
financial statements.
FINANCIAL HIGHLIGHTS
The following presents supplemental information to the MD&A. Since fiscal year 2007, the City of
Chula Vista's revenue base has been significantly reduced. The prolonged economic recession
has impacted the City's major revenue sources -Property Tax, Sales Tax, and Motor Vehicle
License Fees. During this time, the City Council has been proactive in addressing the financial
issues facing the City -they have approved several budget balancing plans in an effort to keep
expenditures in line with revenues. Unfortunately, during fiscal year 2009-10 the City continued to
see declines in its revenue base.
In the development of the fiscal year 2010-11 budget, the City Manager recommended, and the
Council approved, closing the deficit through the application of one time revenues in order to avoid
additional service level impacts and employee layoffs. The use of one-time revenues affords the
City the opportunity to continue to monitor economic trends and come forward in the future with
adjustments based on additional months of economic data. While these solutions resulted in a
balanced budget and minimal service impacts, they did not resolve the underlying structural
problem.
Based on current economic trends, the Five-Year Financial Forecast indicates that the City is facing
a deficit of $18.1 million in fiscal year 2011-12 as the City continues to struggle with the impacts of a
declining revenue base. Given the magnitude of the projected deficit, the City Manager has started
the fiscal year 2011-12 budget process early in order to explore several options for balancing the
budget.
In order to mitigate the projected budget gap, the City Manager proposed a plan to the City's
bargaining groups and unrepresented employees. The plan includes a combination of layoffs and
for all employees to pick up their share of pension costs and to forego all raises for the remainder of
the various memorandum of understanding with the bargaining groups. In addition, there will be a
9-x1;8
1/13/2011
second tier retirement plan that will have reduced retirement benefits for future hires. It is
anticipated that all bargaining groups will accept the plan and the City will be able to present a
balanced budget to City Council for fiscal year 2011-12.
AWARD
The Government Finance Officers' Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Chula Vista for its
comprehensive annual financial report for the fiscal year ended June 30, 2009. In order to be
awarded a Certificate of Achievement, a government must publish an easily readable and efficiently
organized comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current
comprehensive annual financial report continuesto meet the Certificate ofAchievement Program's
requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.
ACKNOWLEDGMENTS
Preparation of the Report and more importantly, maintaining the City's accounting records in a
manner sufficient to earn the aforementioned auditors opinion is only accomplished with the
continuous concerted effort of each and every staff member in the Finance Department. As such, I
express my sincere appreciation for their dedicated service. 1 would also like to thank the City
Council for their continued support in achieving excellence in financial management.
Respectfully submitted,
James Sandoval Maria Kachadoorian, CPA, MPA
City Manager Director of Finance/Treasurer
9 ~1u9
1/13/2011
City of Chula Vista
List of City Officials
June 30, 2010
City Council
Cheryl Cox Mayor
Rudy Ramirez Deputy Mayor
Pamela Bensoussan Councilmember
Steve Castaneda Councilmember
John McCann Councilmember
Administration
James Sandoval
Gary Halbert
Scott Tulloch
Bart Miesfeld
Donna Norris
Depar
City Manager
Assistant City Manager
Assistant City Manager
City Attorney
City Clerk
tment Heads
Kelley Bacon Director of Human Resources
David Bejarano Chief of Police
Gary Halbert Director of Development Services
Dave Hanneman Fire Chief
Richard Hopkins Director of Public Works
Maria Kachadoorian Director of Finance/Treasurer
Margaret Kazmer Director of Library
Buck Martin Director of Recreation
Michael Meacham Director of Conservation and Environmental
Services
Louie Vignapiano Director of Information Technology Services.
9~
1/13/2011
City Manager
Communications
Fire ~~ Police
Assistant City
Manager
Assistant City
Manager
Human Resources
Information 8
`Tech. Services
Public Works
Finance
Library
Recreation &'
Nature Center
Vacant
Deputy City Manager
Development
r Services
Planning
Building
Housing
Code Enforcement
Economic
Development
Engineering &
Land Development
Redevelopment
Intergovernmental
Affairs
_...
-- -- --- -
Environmental Svs
~',t
Animal Care
City of Chula Vista
Organizational Chart
2010
* Darker color denotes departments
revised6/912010
9 ~1
1/13/2011
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chula Vista
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Associaflon of the United States and Canada to
government milts and public employee retirement
systems whose comprehensive annual fmancial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
~E Wpj
+y 'SRS
pioA` ..~1~~^
~*~ President
~~ ~'~
Executive Director
9-z~i2
1/13/2011
C&L
Caporicci & Lazson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
of the City of Chula Vista
Chula Vista, California
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Chula Vista, California (City), as of and for the year ended June 30, 2010, which
collectively comprise the City's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the City's management. Our responsibility is
to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate under the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the City's internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each
major fund, and the aggregate remaining fund information of the City as of June 30, 2010, and
the respective changes in financial position and cash flows, where applicable, thereof for the
year then ended in conformity with accounting principles generally accepted in the United
States of America.
In accordance with Government Auditng Standards, we have also issued our report dated
January 12, 2011, on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and
not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
vmwcdcpa.com
9-23
1/13/2011
To the Honorable Mayor and Members of the City Council
of the City of Chula Vista
Chula Vista, California
Page 2
The accompanying Required Supplementary Information, such as Management's Discussion
and Analysis, budgetary information, budgetary comparison schedules and other information
as listed in the table of contents, is not a required part of the basic financial statements but is
supplementary information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the Required
Supplementary Information. However, we did not audit the information and express no
opinion on the Required Supplementary Information.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying Supplementary
Information is presented for purpose of additional analysis and is not a required part of the
basic financial statements. The Supplementary Information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is fairly
stated in all material respects in relation to the financial statements taken as a whole. The
Introductory and Statistical Sections have not been subjected to the auditing procedures applied
in the audit of the basic financial statements and, accordingly, we express no opinion on the
Introduction and Statistical Sections.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
January 12, 2011
9-~4
1/13/2011
MANAGEMENT'S DISCUSSION AND ANALYSIS
Management of the City of Chula Vista (the "City") provides this Management Discussion and Analysis of
the Cit}~s Comprehensive Annual Financial Report (CAFR) for readers of the City's financial statements.
This narrative overview and analysis of the financial activities of the City is for the fiscal year ended June
30, 2010. We encourage readers to consider this information in conjunction with the additional information
that is furnished in the letter of transmittal, which can be found preceding this narrative, and with the
City's financial statements, which follow.
Financial Highlights
The following outlines financial highlights for the year:
1. The assets of the City exceeded its liabilities at June 30, 2010 by $984.3 million (net assets). Of this
amount, $148.3 million was reported as "unrestricted net assets" and may be used to meet the
government's ongoing obligations to citizens and creditors.
2. Total unrestricted net assets are $5.8 million lower than last fiscal year, a decrease of 3.8%.
3. The City's total net assets increased by $14.1 million in fiscal year 2010. Net assets of governmental
activities increased by $0.4 mIllion, while net assets of the business type activities increased by $13.7
million. The specifics of the changes in net assets will be discussed in later sections of this document.
4. The City's governmental funds reported combined ending fund balances of $124.7 million, a decrease of
$8.3 million from the prior year due to the economic recession and the lack of housing development.
Approximately, 65% of this total amount ($81.3 million) is reserved to indicate that it is not available for
new spending because it has already been committed to liquidate contracts ($17.7 million), pay debt
service ($21.9 million) and reserved amounts for loans receivable and advances ($41.8 million).
5. Total citywide liabilities increased by $9.3 million or 3.7%. Liabilities for governmental activities
increased by $10.1 million or 4.0% and decreased by $0.7 million or 32.0% for business-type activities.
6. The City's total long-term debt obligations had a net increase of $4.7 million or 2.4% during fiscal year
2010. During the 2010 fiscal year, the City issued the 2010 Certificates of Participation ($29.4 million) to
refinance the 2000 Certificates of Participation ($16.7 million) and to reimburse the Public Facilities
Development Impact Fee Fund for $9.3 million in expenditures Phase III of the Civic Center remodel.
Reductions in the liabilities are composed of debt retirement ($16.7 million), repayments of bond
principal ($6.4 million), repayments on loans/notes payable ($0.5 million) and lease payments ($0.4
million). See Note 6 in the financial statements for further detail.
7. The unreserved fund balance of the General Fund on June 30, 2010 was $13.7 million, an increase of $1.3
million from the prior year. Included in these figures is $1.5 million of unreserved fund balance
accounted for in funds, such as the Public Liability Reserve Fund, which are considered general fund
type funds for financial reporting purposes. Excluding these other general fund type funds, the
available General Fund balance is $10.2 million or 7.3% of operating expenditures.
9-~5
1/13/2011
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City's basic financial statements.
The City's basic financial statements are comprised of three components: 1) government-wide financial
statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains required supplementary information (RSI) as well as other supplemental financial
information.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private-sector business. They are comprised of the Statement of Net
Assets and Statement of Acrivifies.
The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference
between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating. This statement
combines and consolidates governmental fund's current financial resources with capital assets and long-
term obligations.
The Statement of Activities presents information showing how the government's net assets changed during
the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of the related cash flows. Thus revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected
taxes and earned but unused vacation leave).
Both of the above financial statements have separate sections for three different types. of programs or
activities. These three types of activities are:
Governmental Activities -The activities in this section are mostly supported by taxes and charges for services.
The governmental activities of the City include General Government, Public Safety, Public Works, Parks
and Recreation and Library.
Business-Type Activities -These functions normally are intended to recover all or a significant portion of
their costs through user fees and charges to external users of goods and services. The business-type
activities of the City include the Sewer Funds and Transit Operations.
Discretely Presented Component Units -The City of Chula Vista has no discretely presented component units
to report upon.
The government-wide financial statements can be found on pages 18 through 21 of this report.
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds
of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary
funds.
9-~6
1/13/2011
The fund financial statements provide detailed information about each of the City's most significant funds,
called Major Funds. The concept of Major Funds, and the determination of which are major funds, was
established by GASB Statement 34 and replaces the concept of combining like funds and presenting them in
total. Instead, each Major Fund is presented individually, with all Non-major Funds summarized and
presented in a single column. Further detail on the Non-major funds is presented on pages 101 through 128
of this report.
Governmental Funds -Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government-wide financial statements. However, unlike the government-
wide financial statements, governmental fund financial statements focus on near-term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government's near-term financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the government's near-term financing decisions.
Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures,
and changes in fund balances provide a reconciliation to facilitate this comparison between governmental
funds and governmental activities. These reconciliations are presented on the page immediately following
each governmental fund financial statement.
The City has thirty-three governmental funds, of which seven are considered major funds for presentation
purposes. Each major fund is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures, and changes in fund balances. The City's
remaining governmental funds are combined into a single, aggregated presentation. The basic
governmental fund financial statements can be found on pages 26 through 33 of this report. Individual
fund data for each of these non-major governmental funds is provided in the form of combining statements
on pages 101 through 111 of this report.
Proprietary Funds -The City maintains two different types of proprietary funds -enterprise funds and
internal service funds. Enterprise funds are used to report the same functions presented as business-type
activities in the govemment-wide financial statements. The City uses an enterprise fund to account for its
Sewer and Transit activities. Internal service funds are used to accumulate and allocate costs internally
among the City's various functions. The City uses internal service funds to account for its fleet of vehicles
and its information systems and equipment replacement program. Because these services predominantly
benefit governmental rather than business-type functions, they have been included within governmental
activities in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only
in more detail. Like the government-wide financial statements, proprietary fund financial statements use
the accrual basis of accounting. There is no reconciliation needed between the government-wide financial
statements for business-type activities and the proprietary fund financial statements.
The basic proprietary fund financial statements can be found on pages 36 through 38 of this report.
Fiduciary Funds -Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government-wide financial statements because the
resources of those funds are not available to support the City's own programs.
9-~7
1/13/2011
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in
the government-wide and fund financial statements. The notes to the financial statements can be found on
pages 42 through 91 of this report.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information providing a budgetary comparison statement for the general fund and
sewer fund. Required supplementary information can be found on pages 94 though 98 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government's financial position.
In the case of the City of Chula Vista, combined net assets (government and business type activities) totaled
$984.3 million at the close of the fiscal year ending June 30, 2010.
By far the largest portion of the City's net assets (79.9%) reflects its investment in capital assets (e.g. land,
streets, sewers, buildings, machinery, and equipment), less any related debt used to acquire those assets
that are still outstanding. The City uses these capital assets to provide services to citizens; consequently,
these assets are not available for future spending. Although the Cit}~s investment in its capital assets is
reported net of related debt, it should be noted that the resources needed to repay this debt must be
provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
City of Chula Vista
Net Assets
Fiscal Year Ending June 30
Governmental Activities Business-T eActivities Total
2070 2009 2010 2009 2010 2009
Current Assets 177,208,836 182,439,255 $ 62,055,570 $ 53,515,983 $ 239,264,406 $ 235,955,238
Non-Current Assets 138,230,560 25,688,321 15,974,429 13,566,824 154,204,989 39,255,145
Capital Assets 705,261,368 802,106,573 150,251,657 148,237,562 855,513,025 950,344,135
Total Assets 1,020,700,764 1,010,234,149 228,281,656 215,320,369 1,248,982,420 1,225,554,518
Current Liabilities 36,924,808 36,455,307 1,511,585 2,222,229 38,436,393 38,677,536
Long-Term Liabilities 226,288,362 216,703,054 226,288,362 216,703,054
Total Liabilities 263,213,170 253,158,361 1,511,585 2,222,229 264,724,755 255,380,590
Investments in Capital
Net of Related Debt 634,377,842 623,938,515 152,384,420 148,237,562 786,762,262 772,176,077
Restricted 49,193,256 43,901,854 49,193,256 43,901,854
Unrestrictetl 73,916,496 89,235,419 74,385,651 64,860,578 148,302,147 154,095,997
Total Net Assets $ 757,487,594 $ 757,075,788 $ 226,770,071 $ 213,098,140 $ 984,257,555 $ 970,173,928
Additional portions of the City's net assets are restricted ($49.2 million or 4.9%) and represent resources
that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net
assets of $148.3 million may be used to meet the governments ongoing obligations to citizens and creditors.
At the end of fiscal year 2009-10 the City is able to report positive balances in all three categories of net
assets, both for the government as a whole, as well as for its separate governmental and business-type
activities. The same situation held true for the prior fiscal year.
9-~8
1/13/2011
There was an increase of $5.3 million in restricted net assets reported in connection with the City's
governmental activities. The increase is due to the City receiving more grant funding as part of the
American Recovery and Reinvestment Act. The grants are for spending on specific activities therefore the
funds are designated as "restricted".
Changes in Net Assets
The City's net assets have increased by $14.1 million or 1.5%, from the prior fiscal year. The business-type
activities account for 13.7 million or 97% of the increase in total net assets. An increase in sewer fees for the
year resulted in a $5.2 million increase in charges for services from the prior year revenues. The rest of the
increase is due to an $8.7 million contribution of developer-constructed infrastructure for the City's sewer
funds. Governmental activities provided a modest increase in net assets of $0.4 million. However,
considering the current economic conditions an increase in net assets demonstrates the conservative budget
and spending that the City has had to adopt in order to not use reserves to plug deficits in revenues.
Further analysis is provided within the governmental and business-type activity sections below.
Governmental Activities
Governmental activities increased the City's net assets by $0.4 million thereby accounting for a small
portion of the City's increase in net assets. A comparison of the cost of services by function for the City's
governmental acivities is shown in the table below, along with the revenues used to cover the net expenses
of the governmental activities. Key elements of this increase are as follows:
• Program revenues as a whole increased
by $6.3 million due to a number of
American Recovery and Reinvestment
Act grants received for infrastructure
improvements in the City.
• General revenues as a whole decreased
by $3.6 million due to the economic
recession and the high unemployment
rates that have effectively curbed
discretionary spending in the City.
• Due to the anticipated decrease in
general revenues, the City reduced
expenditures for governmental activities
by $9.7 million from the prior fiscal year.
Total governmental activity type expenses
were $218.6 million in fiscal year 2010. The
largest expenses were incurred for Public
Safety, Public Works and General
Government. These three activities
combined account for 89.1% of all general
activity expenses. These expenses do not
include capital outlays, which are reflected
in the City's capital assets.
6cpenses and Program Revenues
Governmental Activities
$so
u,
` $~o
o $so
$so
$ao
$30
$20 ~ - -
$to
$-
General Parks antl Public Sate(y Library FLblic Works Interest on
Govemrrent Recreation long-term
tlebt
^ Expenditures ~ Rogram Revenues
Governmental Expenses by Activity
Interest on
Public Works long-term debt
32% 50
General
Library
Government
2%
23%
Parks and
Public Safety Recreation
34% 4%
9 -'~9
1/13/2011
City of Chula Vista
Summary of Changes in Net Assets
Fiscal Year Ending June 30
Governmental Activities Business-T eActivities Total
2070 2009 2010 2009 2010 2009
Revenues: -
Program Revenues:
Charges for Services 73,079,200 72,808,623 $ 39,785,718 $ 34,958,377 $ 112,864,918 $ 107,768,994
Operating Grants & Contributions 17,984,120 18,957,467 3,357,566 3,390,228 21,341,686 22,347,695
Capital Grants 8 Contributions 23,771,994 16 754,583 - 23,711,994 16,754,583
General Revenues:
Property Taxes 40,489,662 43,319,156 40,489,682 43,319,156
Sales Taxes 23,674,601 26,263,317 23,674,601 26,263,317
Franchise Taxes 8,465,199 9,379,964 8,465,199 9,379,964
Utility User Taxes 9,059,302 7,848,557 9,059,302 7,848,557
Business License Taxes 1,177,539 1,212,126 1,177,539 1,212,126
Transient Occupancy Taxes 2,036,377 2,302,412 2,038,377 2,302,412
Property Transfer Taxes 893,116 856,658 893,116 856,656
Construction Taxes 296,144 43,649 296,144 43,649
Investment Earnings 5,744,616 12,67fi,922 1,785,660 2,090,317 7,530,276 14,787,233
Miscellaneous 8,890,689 355,175 9,249,893 3,215,264 18,140,582 3,570,439
Total Revenues 215,502,579 212,778,609 54,178,837 43,654,174 269,681,416 256,432,783
Expenses
General Government $ 51,136,412 $ 49,216,220 $ 51,136,412 49,216,220
Public Safety 74,008,767 76,097,546 74,008,767 76,097,546
Public WOrks 69,524,903 72,509,779 69,524,903 72,509,779
Parks and Recreation 7,849,907 9,805,893 7,649,907 9,805,893
Library 4,826,602 7,617,286 4,826,602 7,617,286
Interest on Long-Tenn Debt 11,217,753 13,064,138 11,217,753 13,064,138
Sewer Funds 29,240,616 23,528,217 29,240,676 23,528,217
Non-Major Enterprise Funds 7,792,719 8,446,884 7,792,719 8,446,884
Total Expenses 218,564,344 228,310,862 37,033,335 31,975,101 255,597,679 260,285,963
Increase/(Decrease) in
Net Assets Betore Transfers (3,061,765) (15,532,253) 17,145,502 11,679,073 14,083,737 (3,853,180)
Transfers 3,473,571 3,880,097 3473,571 3,880,097
Change in Assets 411,806 (11,652,162) 13,671,931 7,798,982 14,083,737 (3,853,180)
Net Assets, Be innin of Year 757,075,788 768,727,950 213,098,140 205,299,158 970,173,928 974,027,108
Net Assets, End of Year $757,487,594 $ 757,075,788 $ 226,770,071 $ 213,098,140 $ 984,257,665 $ 970,173,928
Total program revenues from governmental activities were $114.8 million in fiscal year 2010. Per GASB 34,
program revenues are derived directly from the program itself or from parties outside the reporting
government's taxpayers or citizenry. They reduce the net cost of the function to be financed from the
eovernment's ;'eneral revenues.
As reflected in the pie chart, $73.1 million or
34% of the governmental program revenues
came from Charges for Services, which
includes licenses and permits, plan checking
fees, developer fees, special assessments and
several other fee for service type revenues.
Program revenues under the Operating
Grants and Contributions category totaled
$18.0 million or 8% and include restricted
revenues such as Gas Tax, Transportation
Sales Tax, Asset Seizure Funds and Federal
and State Grants. Capital
Revenues by Source -Governmental Activities
Sales Taxes
Other Taxes
11% 10%
O
r
Property Taxes ~o
19 % °~
~ ~:
Capital Grants 8
Contributions
11%
Charges far
Operating Grants Seances
B Contributions 34%
6%
Capital Grants and Contributions are primarily derived from contributed capital from developers for
infrastructure. Capital Grants and Contributions totaled $23.7 million or 11% of which $17.0 million or 72%
is related to roadways funded by developers and received by the City after completion.
9-~0
1/13/2011
General revenues are all other revenues not
categorized as program revenues such as
property taxes, sales taxes and investment
earnings. Total general revenues from
governmental activities were $100.7 million in
fiscal year 2010. The largest percentage of
general revenues received during fiscal year
2010 for governmental activities were taxes of
$86.1 million, which included Property Taxes
of $40.5 million and Sales Taxes of $23.7
million. A percentage breakdown of all
general revenues is shown in the pie chart
Govemmental Activities -General Revenues
Mscellaneous Construction Taxes
S.8% 0.3%
Roperty Taxes Investirent
40.2% Eammgs
5.7%
RopeM Transfer Franchise Taxes
Taxes B 4
0.9% Business License
Transient Taxes
Occupancy Tax 1.2 %
Sales Tazes
2 0 ~ T
xes
Utilit
U
y
ser
a
235%
9.0%
above.
Business Type Activities
Net assets for business-type activities were $226.8 million, an increase of $13.7 million from the prior fiscal
year. This increase in net assets for business-type acttvities was the primary reason for the City's total net
asset growth of $14.1 million for all funds. The change in the net assets is attributable to sewer
infrastructure donations of $9.2 million, a net operating gain of 2.8 million for all business-type activities
and $1.8 million of investment earnings on the $57.1 million in total cash balances for the business-type
funds.
Total program revenues for business-type activities
were $43.1 million that were for various sewer fees
($36.3 million) and bus fares ($3.3 million) and state
grants (buses $3.3 million) from the Metropolitan
Transit System whom the City contracts with to
provide transit service. Total expenses for the
business-type activities were $37.0 million and were
for expenses related to Sewer ($29.2 million) and
Transit Operations ($7.8 million).
FINANCIAL ANALYSIS OF INDIVIDUAL FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the City's financial capacity. In
particular, unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
As of the end of fiscal year 2010, the City's governmental funds reported combined ending fund balances of
$124.7 million. Approximately, $43.4 million of this amount constitutes unreserved and undesignated fund
balance. The remainder of fund balance is reserved to indicate that it is not available for spending because it
has already been legally committed.
9-$1
1/13/2011
General Fund -Included as part of the general fund category for financial reporting purposes is the
General Fund, which includes the primary operating fund of the City, the Workers Compensation Fund,
Flexible Spending Account Fund and the Public Liability Reserve Fund, which are considered general fund
type funds for financial reporting purposes.
At the end of the current fiscal year, unreserved fund balance of the general fund was $13.7 million, while
total fund balance is $33.2 million. As a measure of the general fund's liquidity, it may be useful to
compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund
balance represents 10.3% of total general fund expenditures including transfers out, while total fund
balance represents 24.9% of that same amount.
During the current year, unreserved fund balance of the general fund, excluding the other general fund
type funds is $10.2 million and represents an increase of $0.9 million from the prior year. The available
fund balance represents 7.3% of the general fund operating budget for fiscal year 2010.
On November 5, 2009, the City Council approved a revised General Fund operating reserve policy setting a
long-term goal of building the reserves to 15%. In addition, the Council approved the establishment of two
additional reserves, the Economic Contingency Reserve and Catastrophic Event Reserves at 5% and 3%
respectively. The additional reserve categories were established to provide for greater distinction,
increased security and accountability in the use of reserves. It is a long-term goal of the City Council to
build the reserves to the policy level within 10 years of passing the new reserve policy.
There is no discussion of any significant budgetary variations between original and final budget amounts
and between final budget amounts and actual results because significant variances have already been
discussed in this document. Management considers a variance of 10% or greater as significant.
Sundry Grants. Fund -This fund is to account for miscellaneous grants/revenues such as: Supplemental
Law Enforcement Services, California Library Services Act, Public Library Act, Asset Seizure, Local Law
Enforcement Block Grants, federal library grants, waste management and recycling, energy conservation,
parks and recreation social service grants, G. McCandliss memorial cultural arts, federal assistance, CDBG
Section 108 loan, CDBG program income project, HOME project, and Community Development Block
grants.
The ending total fund balance for fiscal year 2010 was $10.9 million, which is an increase of $0.7 million or
6.9% over the prior year. The unreserved portion of the total fund balance is $1.5 million. Unreserved fund
balance represents 11.6% of total fund expenditures including transfers out, while total fund balance
represents 84.5% of that same amount.
Redevelopment Agency -This fund accounts for revenue received from tax increment within the
redevelopment project areas and is used to fund the Low and Moderate Income Housing fund operating
expenditures and Community Housing Improvement Program loans.
The ending total fund balance for fiscal year 2010 was $14.2 million, which is an increase of $2.3 million or
19.3% over the prior year due to reduced expenditures for affordable housing projects. Typically, funds are
accumulated for several years before providing assistance to affordable housing developers. The
unreserved portion of the total fund balance is $8.5 million.
9-1b2
1/13/2011
Development Impact Fund -This fund was established as a depository for various development impact
fees. The fees are levied against all new development in the City in order to pay for the construction or
improvement of public facilities as a result of City growth. At the end of fiscal year 2010, the unreserved
fund balance was $21.6 million, which is a decrease of $4.2 million from the previous fiscal year due to a
combination of factors. On the revenue side, large-scale development has stopped in the City therefore a
minimal amount of fees are being collected. Due to the lack of revenue, expenditures are limited to the
payment of debt service. Since these funds are collected for construction or improvements of public
facilities, they have been fully designated for specific projects.
Park Acquisition Development -This fund was established as a depository for fees collected from property
developers for the purpose of providing park and recreational facilities directly benefiting and serving
residents of the regulated subdivision. This in-lieu fee was adopted by the City to acquire neighborhood
and community parkland and to construct parks and recreational facilities.
The Park Acquisition and Development fee was increased in October 2009 from $9,428 to $9,574 for Areas
West of I-805 and $17,110 to $17,256 for Areas East of I-805. At the end of fiscal year 2010, the unreserved
fund balance was $29.9 million, which is a decrease of $2.3 million due to construction of San Miguel
Community Park and All Seasons Park. Since these funds are collected for providing parks and
recreational facilities, they have been fully designated for specific projects.
Redevelopment Agency Debt Service Fund -This fund was established to account for tax levies, rentals,
other revenues and payments of principal and interest on Redevelopment Agency loans and outstanding
bonds. The deficit fund balance decreased by $0.5 million from $-29.3 million to $-29.8 million. The
decrease is due to payment of debt service obligations of $4.5 million and a new loan from the Low and
Moderate Housing Income Fund to the Redevelopment Agency in order to make its $4.1 million payment to
the State for Education Revenue Augmentation Fund (State raid on property taxes to pay to schools).
City Debt Service Fund -This fund was established to account for the principal and interest payments on
the City's long-term debt. The unreserved fund balance deficit increased by -$5.7 million from $-20.7 to $-
26.4 million for the fiscal year. The deficit increase is due to an interfund loan during the fiscal year. The
Transportation Development Impact Fee fund made a loan to the Public Facilities Development Impact Fee
fund in the amount of 5.3 million.
Proprietary Funds
The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail. .
Sewer Fund- The Sewer Fund is used to account for a variety of sewer service related revenues and
expenses. The net assets for the fund increased $14.6 million to $216.7 million. The fund's Investments in
capital assets (i.e. sewer system infrastructure) account for $146.9 million or 67.8% of the net assets of the
fund.
Sewer Fund operating revenues increased by $5.2 million over the prior fiscal year. An increase in sewer
fees accounts for the increase. Total operating expenses for the Sewer Fund increased by $5.7 million
compared to the last fiscal year. All of the increase is in operations and administration expense and is
related to the City's contract with the City of San Diego. The City contracts with the City of San Diego to
treat its sewage through San Diego's treatment plant. Contractual services with the City of San Diego were
decreased in fiscal year 2009-10 from the previous year because the City of San Diego did a reallocation of
its charges to all participating agencies that contract with the San Diego. This resulted in refunds that were
used to offset the City of San Diego billings to Chula Vista during fiscal year 2008-09.
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GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended general fund budget totaled $135.0 million, including $982,290 in budget amendments to
the originally adopted budget and encumbrances of $1.0 million, which will fund contractual obligations
and outstanding purchase orders. The General Fund's net cost budget amendments of $293,682 are
summarized as follows:
• $-114,000 for services provided by the County of San Diego Registrar of Voters.
• $-130,031 reduction in revenues for reduced City overhead in certain funds.
• $-59,740 from the General Fund to the Waste Management and Recycling Fund for the transfer of
grant revenues that were incorrectly posted to the General Fund in the prior fiscal year.
• $10,089 increase in revenues for an undercover police grant related to drug enforcement activities.
Of the $982,290 in mid-year appropriations, $688,608 was covered by specific funding sources. As discussed
previously, the available fund balance of the General Fund, excludine the other general fund type funds,
increased $0.9 million from the prior fiscal year to $10.2 million or 7.3% of operating expenditures.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's investment in capital assets for its governmental and business type activifies as of June 30, 2010,
amounts to $969.6 million, net of accumulated depreciation of $375.1 million. This investment in capital
assets includes land, buildings, improvements, machinery and equipment, infrastructure and construction
in progress. Infrastructure assets are items that are normally immovable and of value only to the City such
as roads, bridges, streets and sidewalks, drainage systems, lighting systems and similar items. The total
additions to the City's investment in capital assets for the current fiscal year was $19.3 million, net of
accumulated depreciation.
Major capital asset additions during the current fiscal year are discussed in the City Highlights section of
this document.
Additional information on the City's capital assets can be found in Note 5a of the notes to the financial
statements.
Debt Administration
Long Term Debt - At the end of the 2010 fiscal year, the City had $200.6 million in debt outstanding
compared to the $195.9 million last year, a 2.4% net increase. During the 2010 fiscal year, the Public
Financing Authority issued refunding certificate of participation bonds in the amount of $29.4 million. The
bonds refunded the 2000 certificates of participation. The refunding provided temporary relief for the
Public Facilities Development Impact Fee fund (PFDIF) which has been receiving significantly less revenue
due to the lack of housing development in the City. The PFDIF fund is the primary source of funds used to
service the debt of the certificates of participation.
The City has no outstanding general obligation debt. The City has maintained an "A--" rating by Standard &
Poors for Certificates of Participation, which represents a "stable outlook.
The Redevelopment Agency was upgraded from an "A" to an "A+" rating from Standard &Poors for Tax
Allocation Bonds. Additional information on the City's long-term debt obligations can be found in Note 6 of
the notes to the financial statements.
9-t~4
1/13/2011
ECONOMIC CLIMATE
Chula Vista, the second largest City in San Diego County, is a town in transition. Once known as a bedroom
community with a sirong collection of small businesses, Chula Vista is now attracting multi-national
corporations. High tech companies likeHitachi, DNP America and Leviton have opened new facilities in
Chula Vista during the past few years. These companies find the area a good location from which to
manage their manufacturing and distribution operations both in the United States and in Mexico.
The San Diego regional economy has undergone a remarkable transformation over the past decade. The
severe recession in the first half of the 1990s was the longest and deepest of the past 60 years. The
downturn, subsequent recovery and expansion were not mere business or cyclical adjustments, but an
extensive overhauling and restructuring of the region's basic economic drivers.
From an economy largely dominated by defense and military expenditures, San Diego industries
transformed into a diversified mix of high-technology commercial endeavors. Some of these sectors were
by-products of defense-based efforts, as well as capitalization of highly educated and skilled workers.
Emerging growth areas include telecommunications, electronics, computers, software, and biotechnology.
International trade also contributed to the local economic recovery and dynamic performance in recent
years. Crass border trade and interactions with Mexico provide tremendous economic advantages and
opportunities, becoming an increasingly important facet of the local region s economic fortunes.
Mexico and Canada, U.S. partners under the North American Free Trade Agreement (NAFTA), dominate
San Diego's export markets by far, accounting for more than one-half (55 percent) of all export production.
San Diego clearly benefits from NAFTA, not only because the agreement further opened up the markets of
our two largest customers, but also because Tijuana and Baja California, our border and economic partner,
was greatly benefited and stimulated by heightened trade and dollars flowing to the region.
As discussed in the transmittal letter, the City has been hard hit by the lack of residential development, the
sub-prime mortgage debacle, and one of the highest foreclosure rates in the county. These factors have
reduced the growth in assessed values within the city from 20% in 2006 to -3.76% in 2010.
The City's two largest sources of discretionary General Fund revenue are property and sales taxes. The
housing factors coupled with increasing unemployment of city residents has led to a third year decline in
property tax revenues and a decline in sales tax revenues from fiscal year 2009. This trend is expected to
continue until at least 2012. As a result of these revenue declines the City has acted quickly to reduce
expenditures to bring them more in line with revenues. The City reduced the General Fund operational
budget from $142.3 million in fiscal year 2009 to $133.0 million in fiscal year 2010.
The City's growth and development is expected to continue but not until the housing market has been
corrected. The San Diego Association of Governments' most recent forecast for growth estimates the City to
add over 80,000 new residents to the community over the next 20 years.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City's finances for all of its citizens,
taxpayers, customers, investors and creditors. Questions concerning any of the information provided in
this report or requests for additional information should be addressed to the City of Chula Vista, Finance
Department, 276 Fourth Avenue, Chula Vista, CA 91910.
9-t35
1/13/2011
9-~6
1/13/2011
BASIC FINANCIAL STATEMENTS
9-~ 7
1/13/2011
9 II8
1/13/2011
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
s-~ s
1/13/2011
City of Chula Vista
Statement of Net Assets
June 30, 2010
Primary Government
ASSETS
Current assets:
Cash and investments
Receivables:
Accounts
Taxes
Interest
Other
Due from other governments
Inventories and prepaid items
Total current assets
Noncurrent assets:
Restricted cash and investments:
Held by City
Held by fiscal agent
Loans Receivable
Internal balances
Deferred charges, net
Net pension assets
Non-depreciable capital assets
Depreciable capital assets, net
Total noncurrent assets
Total assets
See accompanying Notes to Basic Financial Statements.
-- Governmental Business-Type
Activities Activities
$ 127,540,924 $
Total
57,138,238 $ 184,679,162
677,718 4,753,468 5,431,186
10,713,724 - 10,713,724
405,063 162,452 567,515
890,726 1,412 892,138
6,238,871 - 6,238,871
6,192 - 6,192
146,473,218 62,055,570 208,528,758
11,958,657 - 11,958,657
18,776,961 - 18,776,961
33,254,130 - 33,254,130
(13,841,666) 13,841,666 -
1,249,868 - 1,249,868
5,601,547 - 5,601,547
111,966,681 2,132,763 114,099,444
705,261,368 150,251,657 855,513,025
874,227,546 166,226,086 1,040,453,632
1,020,700,764 228,281,656 1,248,982,420
s~ao
1/13/2011.
City of Chula Vista
Statement of Net Assets, Continued
June 30, 2010
Primary Government
- Governmental Business-Type
Activities Activities Total
LIABILITIES
-- Current liabilities:
Accounts payable and accrued liabilities 10,947,648 640,091 11,587,739
Interest payable 2,885,493 - 2,885,493
Unearned revenue 7,086,068 871,494 7,957,562
Compensated absences -due within one year 4,000,000 - 4,000,000
Claims payable -due within one year 4,200,000 - 4,200,000
Long-term debt- due within one year 7,805,599 - 7,805,599
Total current liabilities 36,924,808 1,511,585 38,436,393
Noncurrent liabilities:
Retention payable
1,399,747
-
1,399,747
Developer deposits 11,578,040 - 11,578,040
Pollution Remediation Obligation 650,000 - 650,000
Arbitrage liability
24,426
-
24,426
Net OPEB Eability 2,549,000 - 2,549,000
Compensated absences -due in more than one year 2,725,937 - 2,725,937
Claims payable -due in more than one year 14,601,604 - 14,601,604
Long-term debt- due in more than one year 192,759,608 - 192,759,608
Total noncurrent liabilities 226,288,362 - 226,288,362
Total liabilities 263,213,170 1,511,585 264,724,755
NET ASSETS
Invested in capital assets, net of related debt 634,377,842 152,384,420 786,762,262
Restricted:
Community development 19,431,229 - 19,431,229
Debt service 21,894,084 - 21,894,084
Capital projects
7,867,943
-
7,867,943
Total restricted - 49,193,256 - 49,193,256
Unrestricted 73,916,496 74,385,651 148,302,147
Total net assets $ 757,487,594 $ 226,770,071 $ 984,257,665
See accompanying Notes to Basic Financial Statements.
9-141
1/13/2011
City of Chula Vista
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2010
Revenues
Operating Capital Total
Charges for Grants and Grants and Program
Functions/Programs Expenses Services Contributions Contributions Revenues
Primary government:
Governmental activities:
General government $ 51,136,412 $ 32,419,505 $ 4,186,454 $ 340,645 $ 36,946,604
Public safety 74,008,767 8,833,813 8,041,068 - 16,874,881
Public works 69,524,903 28,761,170 5,719,718 73,178,242 57,659,130
Parks and recreation 7,849,907 2,559,668 14,645 193,107 2,767,420
Library 4,826,602 505,044 22,235 - 527,279
Interest on long-term debt 11,217,T3 - - - -
Tota] governmental activities 218,564,344 73,079,200 17,984,120 23,711,994 114,775,314
Business-type activities:
Sewer 29,240,616 36,284,081 - - 36,284,081
Transit 7,571,898 3,335,334 3,264,832 - 6,600,166
Bayfront Trolley Station 94,802 - 92,734 - 92'734
Sewer DIFS 126,019 166,303 - - 166,303
Tota] business-type activities 37,033,335 39,785,718 3,357,566 - 43,143,284
Total primary government $ 255,597,679 $ 112,864,918 $ 21,341,686 $ 23,711,994 $ 157,918,598
General revenues:
Taxes:
Property taxes
Sales taxes
Propertytransfer taxes
Franchise taxes
Utilities user taxes
Business license taxes
Transient occupancy taxes
Constmction taxes
Total taxes
Investment earnings -
Miscellaneous
Transfers
Total general revenues and transfers
Change in net assets
Net assets -beginning of yeaz
Net assets -end of year
See accompanying Notes to Basic Financial Statements.
902
1/13/2011
Ne[ (Expense) Revenue and
_. - Changes in Net Assets
Primary Government
Governmental Business-type
Activities Actvites Total
$ (14,1&9,808) $ - $ (14,189,808)
(57,133,8&6) - (57,133,586)
(11,865,773) - (11,865,773)
(5,082,487) - (5,082,487)
(4,299,323) - (4,299,323)
(11,217,753) - (11,217,753)
(103,789,030) - (103,789,030)
- 7,043,465 7,043,465
- (971,732) (971,732)
- (2,068) (2,068)
- 40,284 40,284
- 6,109,949 6,109,949
(103,789,030) 6,109,949 (97,679,081)
41,798,577 - 41,798,577
23,674,601 - 23,674,601
893,116 - 893,116
8,465,199 - 8,465,199
9,059,302 - 9,059,302
1,177,539 - 1,177,539
2,036,377 - 2,036,377
296,144 - 296,144
87,400,855 - 57,400,855
5,744,616 1,785,660 7,530,276
7,581,794 9,249,893 16,831,687
3,473,571 (3,473,571) -
104,200,536 7,561,982 111,762,518
411,806 13,671,931 14,083,737
757,075,788 213,098,140 970,173,928
$ 757,487,594 $ 226,770,071 $ 984,257,665
943
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944
1/13/2011
FUND FINANCIAL STATEMENTS
9-u45
1/13/2011
9~6
1/13/2011
GOVERNMENTAL FUND
FINANCIAL STATEMENTS
s~4,
1/13/2011
City of Chula Vista
Balance Sheet
Governmental Funds
June 30, 2010
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Interest
Loans
Other
Due from other funds
Due from other governments
Advances to other funds
Inventories and prepaid items
Restricted cash and investments:
Held by City
Held by fiscal agent
Total assets
LIABILTITES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Due to other funds
Retention payable
Advances from other funds
Developer deposits
Deferred revenue
Total liabilities
Fund Balances:
Reserved:
Encumbrances
Long-term receivable and advances
Debt service
Inventories and prepaid items
Total reserved
Unreserved:
Designated for:
General Fund
Special revenue funds
Capital projects funds
Undesignated:
General fund
Special revenue
Debt service
Total unreserved
Total fund balances -
Total liabilities and fund balances
Major Funds
Sundry Grants RDA RDA City
Genera] Specia] Revenue Specia] Revenue Debt Service Debt Service
Fund Fund Fund Fund Fund
$ 9,949,021 $ 2,073,685 $ 3,110,992 $
592,391 6,834
9,284,601 101,262 -
- 8,576 18,163
106,250 12,680,489 19,882,659
373,601 5,329 183
259,666 - 733,302
770,676 3,072,922 -
25,805,005 - 4,164,850
6,192 - -
- 7,327,707 4,629,509
3,879 $ -
988 -
- 3,573,718 -
$ 47,147,403 $ 25,276,804 $ 32,539,658 $ 3,578,585 $ -
$ 5,711,419 $ 915,860 $ 11,792 $ - $ -
- 1,016,471 - - -
4,069 23,078 - - -
_ - - 33,420,868 26,438,435
8,210,115 12,470,069 18,346,691 - -
13,965,603 14,425,478 18,358,483 33,420,868 26,438,435
733,798 6,855,910 7,247 - -
1$738,506 2,472,996 5,700,818 - -
6,192 -
19,478,496 9,328,906 5,708,065 - -
3,269,899
28,371
10,433,405 - - -
- 1,494,049 8,473,110 - -
- (29,842,283) (26,438,435)
13,703,304 1,522,420 8,473,110 (29,842,283) (26,438,435)
33,181,800 10,851,326 14,181,175 (29,842,283) (26,438,435)
$ 47,147,403 $ 25,276,804 $ 32,539,658 $ 3,578,585 $ -
See accompanying Notes to Basic Financial Statements.
948
1/13/2011
Major Funds
Park Acquisition Other Total
Development Development Govemmental Governmental
Impact Fund Fund Funds Funds
$ 25,766,597 $ 32,797,169 $ 52,049,849 $ 125,751,192
- 78,493 677,718
_ - 1,327,861 10,713,724
154,022 105,809 112,981 400,539
_ - 584,732 33,254,130
474,002 - 717 553,832
_ - 1,403,543 2,396,511
_ - 2,395,273 6,238,871
11,094,216 - 4,953,566 46,017,637
_ _ - 6,192
_ - 1,441 11,958,657
_ 15,203,243 18,776,961
$ 37,488,837 S 32,902,978 $ 78,111,699 $ 257,045,964
$ 4,029 $ 378,195 $ 3,547,483 $ 10,608,778
_ - 1,380,040 2,396,511
- 925,084 447,516 1,399,747
_ _ _ 59,859,303
_ - 11,578,040 11,578,040
2,091,714 - 5,402,076 46,520,665
2,095,743 1,303,279 22,355,155 132,363,044
3,079,024 1,685,510 5,289,713 17,651,504
10,680,000 - 4,186,800 41,779,120
_ - 21,894,084 21,894,084
6,192
13,759,024 1,685,810 31,370,599 81,330,900
_ _ - 3,269,899
21,634,070 - - 21,662,441
- 29,913,889 7,842,382 37,756,271
_
_ _
- -
16,543,563 10,433,405
26,510,722
(56,280,718)
21,634,070 29,913,889 24,385,945 43,352,020
35,393,094 31,599,699 55,756,544 124,682,920
$ 37,485,837 $ 32,902,978 $ 78,111,699 $ 257,045,964
9~9
1/13/2011
9~s0
1/13/2011
City of Chula Vista
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30, 2010
Total Fund Balances -Total Governmental Funds
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Deferred charges, such as bond issuance costs, were expenditures in the fund financial statements but were defected and
subjxt to capitalization and amortization on the Government-Wide Statement of Net Assets.
Net pension assets were not available to pay for current period expenditures and therefore were not recorded in the
governmental funds.
Capital assets used in governmental activities were not financial resources and therefore were not reported in governmental
funds.
Government-Wide Financial Statements
Less: Internal Service Funds' Capita] Assets
Total capita] assets
124,682,920
1,249,868
5,601,547
817,228,049
(1,371,663)
815,856,386
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable was not reported as
a liability in Governmental Punds Balance Sheet. (2,885,493)
Long-term liabilities were not due and payable in the current period and therefore were not reported in the governmental
funds.
Amount reported in Government-Wide Statement of Net Assets
Compensated absences -due within one year (4,000,000)
Compensated absences - due m more than one year (2,725,937)
Claims payable -due within one year (4,200,000)
Claims payable -due in more than one year (14,601,604)
Long-term debt -due within one year (7,805,599)
Long-term debt -due in more than one year (192,759,608)
Pollution Remediation Obligation (650,000)
Arbitrage liability (24,426)
Net OPEB Lability (2,549,000)
Less: Amount reported in Internal Service Funds
Compensated absences -due in more than one year 63,966
Total long-term liabilities (229,252,208)
Deferred revenues recorded in governmental fund financial statements resulting from activities in which revenues were
earned but funds were not available were recognized as revenues in the Government-Wide Financial Statements.
Amounts reported mGovernment-Wide Statement of Net Assets (7,086,068)
Amounts reported in Governmental Fund Financial Statements 46,520,665
Total adjustments on deferred revenues 39,434,597
Internal service funds were used by management to charge the costs of certain activities [o individual funds. The assets and
liabilities of the internal service funds were included in governmental activities in the Government-Wide Statement of Net
Assets. 2,799,977
Net Assets of Governmental Activities $ 757,487,594
See accompanying Notes to Basic Financial Statements.
9~1
1/13/2011
City of Chula Vista
Statement of Revenues, Expenditures and Changes in Fund Balance
Governmental Funds
For the year ended June 30, 2010
Major Funds
Sundry Grants RDA RDA. City
General Special Revenue Special Revenue Debt Service Debt Service
Fund Fund Fund Fund Fund
REVENUES:
Taxes $ 71,911,179 $ - $ - $ - $ -
Intergovernmenta] 20,092,610 11,639,303 - - -
Licenses and permits 2,193,524 - - - -
Developerfees - - - - -
Charges for services 9,928,213 1,026,245 - - -
Finesand forfeitures 2,311,527 - - - -
Use of money and property 3,079,142 134,573 183,259 101,356 -
Other 19,903,642 407,628 1,213 698 -
Totalrevenues 129,419,837 13,207,749 184,472 102,054 -
EXPENDrIURES:
Current:
General government 30,663,963 2,737,643 470,404 7,855 -
Public safety 63,793,509 5,293,083 - - -
Public works 26,706,211 2,061,427 - - -
Parks and recreation 5,255,812 - - - -
Library 4,563,849 - - - -
Capital outlay 454,786 1,828,078 - - -
Debtservice:
Principal - - - 1,065,000 -
Interestand fiscal charges - - - 3,254,487 834,415
Bond issuance costs - - - - -
Totalexpenditures 133,438,130 11,920,231 470,404 4,327,342 834,415
REVENUES OVER
(UNDER) EXPENDITURES (4,018,293) 1,287,518 (285,932) (4,225,288) (834,415)
OTHER FINANCING SOURCES (USES):
Issuance of debt - 207,372 - - -
Bond discount - - - - -
Refunding bond issued - - - - -
Payment to refunded bond escrow agent - - - - -
Transfersin 10,403,068 158,260 2,776,928 4,534,122 398,157
Transfers out (6,352,496) (1,015,664) (232,172) (4,160,694) (5,300,000) -
Total other financing sources (uses) 4,050,572 (650,032) 2,544,756 373,428 (4,901,843)
NET CHANGE IN FUND BALANCES 32,279 637,486 2,258,824 (3,851,860) (5,736,258)
FUND BALANCE (DEFICIT):
Beginning of year 33,149,521 10,213,840 11,922,351 (25,990,423) (20,702,177)
End of year $ 33,181,800 $ 10,851,326 $ 14,181,175 $ (29,842,283) $ (26,438,435)
See accompanying Notes to Basic Financial Statements.
9~2
1/13/2011
Major Funds
Park Acquisition _ Other Total
Development Development Governmental Governrental
Impact Fund Fund Funds Funds
$ - $ - $ 15,352,755 $ 87,263,934
- - - 10,233,683 41,965,596
- - 81,440 2,274,964
2,238,417 4,772 9,457,802 11,700,991
- - 923,305 11,877,763
- - 812,494 3,124,021
582,380 697,797 1,521,088 6,299,595
8,384 5,113 11,591,630 31,918,308
2,829,181 707,682 49,974,197 196,425,172
- - 12,087,069 45,966,934
- - 994,198 72,080,790
234,824 - 16,776,203 45,775,665
_ _ - 5,255,812
_ - - 4,563,849
723,211 4,571,795 20,050,278 27,628,148
6,236,362 7,301,362
7,496,914 11,185,816
955,035 4,571,795 63,641,024 220,161,376
1,871,146 (3,564,113) (13,666,827) (23,736,204)
_ _ - 207,372
- - (925,872) (925,872)
- - 29,355,000 29,353,000
- - (16,710,000) (16,710,000)
6,702,000 - 36,324,399 61,296,934
(4,995,429) - (35,759,526) (57,815,9&1)
1,706,571 - 12,284,001 15,407,453
3577,717 (3,864,113) (1,382,826) (8,328,751)
31,815,377 35,463,812 57,139,370 133,011,671
$ 35,393,094 $ 31,599,699 $ 55,756,544 $ 124,682,920
9-s53
1/13/2011
City of Chula Vista
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund
Balances to the Government-Wide Statement of Activities and Changes in Net Assets
For the year ended June 30, 2010
Net Change in Fund Balances -Total Governmental Funds
Amounts reported for govemmental activities in the Statement of Activities were different because:
Governmental funds reported capital outlay as expenditures. However, in the Govemment-Wide Statement of Activities and
Changes in Net Assets, the cost of those assets was allocated over their estimated useful lives as depreciation expense. This
was the amount of capital assets recorded in the current period (net of $278,979 reported in internal service funds).
Capita] outlay expendimres reported in the governmental funds
Less: capital outlay expenditures for repairs and maintenance
Total
Depreciation expense on capital assets was reported in the Govemment-Wide Statement of Activities and Changes m Net
Assets, but they did not require the use of current financial resources. Therefore, depreciation expense was not reported as
expenditures in the Governmental Funds. This amount did not include the depreciation expense for Internal Service Funds in
the amount of $684,755.
Capital assets contributed by developers were recognized as revenue on the government-wide statement of activities.
However those assets did not provide for current financial resources and therefore were not recognized as revenue on the
governmental funds statement.
The net effect of various misce0aneous transactions involving capital assets (i.e. sales, trade-ins, and donations) decreased net
assets.
The issuance of long-term liabilities provided current financial resources to govemmental funds, but issuing deb[ in¢eased
long-term liabiities in the Govemment-Wide Statement of Net Assets. Repayment of long-term liabiBHes was an
expenditures in governmental funds, but the repayment reduced long-term liabilities in the Govemment-Wide Statement of
Net Assets.
Issuance of long-term debt
Refunding bond issued
Principal payment of long-term debt
Payment to refunded bond escrow agent
Governmental funds reported bond discount as an expenditure. However, in the Government-Wide Statement of Activities
and Changes in Net Assets, the bond discount was allocated over the lives of the bonds.
Bond discount
Amortization expenses were reported in the Government-Wide Statement of Activities and Changes in Net Assets, but they
did not require the use of current financial resources. Therefore, amortization expenses were not reported as expenditures in
the Governmental Funds.
Bond premium and discount
Deferred charges
Net pension assets
Balance carried forward
(8,328,751)
27,628,148
(4,561,461)
23,066,687
(24,550,548)
17,026,225
(15,112)
(207,372)
(29,355,000)
7,301,362
16,710,000
925,872
(57,011)
(34,690)
(2,073,326)
408,336
See accompanying Notes to Basic Financial Statements.
954
1/13/2011
City of Chula Vista
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes in Fund
Balances to the Government-Wide Statement of Activities and Changes in Net Assets, Continued
For the year ended June 30, 2010
Balance carried over 408,336
Certain long-term liabilities were reported in the Government-Wide Statement of Activities and Changes in Net Assets, bu[
they did not require the use of current financial resources. Therefore, long-term liabilities were not reported as expenditures
in governmental funds. These amounts represented the changes in long-term liabilities from prior year.
Changes in Compensated Absences (458,151)
Changes in Claims Liabilities (931,656)
Changes in Arbitrage Liabilities 38,580
Changes in Net OPEB Liabilities (795,792)
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes m Net Assets,
but it did not require the use of current financial resources. This amount represented the change in accmed interest from
prior year. 421,184
Interest earned on long-term receivables did not provide current financial resources were not reported as revenues in the
Governmental Funds. 2,015,245
Internal service funds were used by management to charge the costs of certain activities to individual funds. The net revenue
of internal service funds was reported with governmental activities. (286,540)
Change in Net Assets of Governmental Activities S 411,806
See accompanying Notes to Basic Financial Statements.
9~s5
1/13/2011
9-1~6
1/13/2011
PROPRIETARY FUND
FINANCIAL STATEMENTS
s~~
1/13/2011
City of Chula Vista
Statement of Net Assets
Proprietary Funds
June 30, 2010
Governmental
Major Fund Activities
Sewer Nonmajor Internal
Fund Enterprise Funds Total Service Funds
ASSETS
Current assets
Cash and investments $ 47,440,060 $ 9,698,178 $ 57,138,238 $ 1,789,732
Receivables:
Accounts 4,753,468 - 4,753,468 -
Interest 129,597 32,855 162,452 4,524
Other 1,201 211 1,412 36,894
Total current assets 52,324,326 9,731,244 62,055,570 1,831,150
Noncurrent assets
Advances to other funds 17,818,182 - 17,818,182 -
Capitalassets, net 146,943,475 5,440,945 152,384,420 1,371,663
Total noncurrent assets 164,761,657 5,440,945 170,202,602 1,371,663
Total assets 217,085,983 15,172,189 232,258,172 3,202,813
LIABILITIES AND
NET ASSETS
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 434,542 205,549 640,091 338,870
Unearned revenue - 871,494 871,494 -
TotalcurrentEabIlities 434,542 1,077,043 1,511,585 338,870
Noncurrent liabilities:
Advances from other funds - 3,976,516 3,976,516 -
Compensated absences - - - 63,966
Total noncurrent liabilities - 3,976,516 3,976,516 63,966
Total liabilities 434,542 5,053,559 5,488,101 402,836
Net Assets:
Invested in capital assets 146,943,475 5,440,945 152,384,420 1,371,663
Unrestricted 69,707,966 4,677,685 74,385,651 1,428,314
Total net assets $ 216,651,441 $ 10,118,630 $ 226,770,071 $ 2,799,977
See accompanying Notes to Basic Financial Statements.
9~$
1/13/2011
City of Chula Vista
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the year ended June 30, 2010
Govemmental
Major Fund Acfivities
Sewer Nonmajor Internal
Fund Enterprise Funds Total Service Funds
OPERATING REVENUES:
Charges for services $ 36,284,081 $ 3,501,637 $ 39,785,718 $ 3,730,823
Other 9,133,384 116,509 9,249,893 22,369
Total operating revenues 45,417,465 3,618,146 49,035,611 3,753,192
OPERATING EXPENSES
Operations and adminisfration
Maintenance
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Interest income
Interest expenses
Gain (loss) on disposal of capital assets
Total nonoperating revenues (expenses)
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS:
Transfers out
Total transfers
CHANGE IN NET ASSETS
NET ASSETS:
Beginning of }'ear
End of year
23,193,302 6,808,278 30,001,580 3,475,442
640,617 13,510 654,127 -
5,424,824 908,003 6,332,827 684,755
29,258,743 7,729,791 36,988,534 4,160,197
16,158,722 (4,111,645) 12,047,077 (407,005)
- 3,357,566 3,357,566 -
1,570,003 215,657 1,785,660 35,937
- (62,928) (62,928) -
18,127 - 18,127 91,910
1,588,130 3,510,295 5,098,425 127,847
17,746,852 (601,350) 17,145,502 (279,158)
(3,141,574) (331,997) (3,473,571) (7,382)
(3,141,574) (331,997) (3,473,571) (7,382)
14,605,278 (933,347) 13,671,931 (286,540)
202,046,163 11,051,977 213,098,140 3,086,517
$ 216,651,441 $ 10,118,630 $ 226,770,071 $ 2,799,977
See accompanying Notes to Basic Financial Statements.
9~9
1/13/2011
City of Chula Vista
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2010
CASH FLOWS FROM OPERATING ACTIVTTIES:
Cash received from customers
Cash received from (payments to) other funds
Cash payments [o supplier and employees for goods and services
Other operating revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPFCAL AND RELATED FINANCING ACTIVTTIES:
Governmental
Major Fund Nonmajor Activities
Sewer Enterprise Internal _
Fund Fund Total Service Funds
$ 35,708,147 $ 2,891,166 $ 38,599,313 $ -
(337,769) 62,927 (274,542) 3,733,106
(24,045,172) (6,648,786) (30,693,958) (3,458,196)
9,133,354 116,509 9,249,893 22,369
20,458,590 (3,578,184) 16,880,406 297,279
Acquisition of capita] assets (10,497,890) 18,205 (10,479,685) (278,979)
Proceeds received from disposal of capital assets 18,127 - 18,127 91,910
Net cash provided (used) by capital and related financing activities (10,479,763) 18,205 (10,461,558) (187,069)
CASH FLOWS FROM NONCAPITAL FINANCING ACTNITIES:
Intergovernmental
Interest expenses
Transfers (out)
Net cash provided (used) by noncapital financing activities
- 3,357,566 3,357,566 -
- (62,928) (62,928) -
(3,141,574) (331,997) (3,473,571) (7,382)
(3,141,574) 2,962,641 (178,933) (7,382)
CASH FLOWS FROM INVESTING ACTNITIES:
Interest revenue
Net cash provided (used) by investing activifies
1,594,529 240,424 1,834,953 37,418
1,594,529 240,424 1,834,953 37,418
Net increase (decrease) in cash and cash investments
8,431,782 (356,914) 8,074,868 140,246
CASH AND CASH EQUIVALENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTNFTIES:
Operating income (loss)
Adjustments to reconcile operating loss to
net cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Aaomts receivable
Other receivable
Advances to other funds
Accounts payable and accrued liabilities
Unearned revenue
Advances from other funds
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
39,008,278 10,055,092 49,063,370 1,649,486
$ 47,440,060 $ 9,698,178 $ 57,138,238 $ 1,789,732
$ lb,ls8,7zz $ (4,u1,64s> $ lz,o47,077 $ (4o7,oos)
5,424,824 908,003 6,332,827 684,755
(574,733) - (574,733) -
(1,201) 61,922 60,721 2,283
(337,769) - (337,769) -
(211,253) 173,002 (38,251) 12,413
- (672,393) (672,393) -
- 62,927 62,927 -
- - - 4,833
4,299,868 533,461 4,833,329 704,284
$ 20,458,590 $ (3,578,184) $ 16,880,406 $ 297,279
See accompanying Notes to Basic Financial Statements.
9~0
1/13/2011
FIDUCIARY FUND
FINANCIAL STATEMENTS
s-~1
1/13/2011
City of Chula Vista
Statement of Fiduciary Net Assets
Agency Fund
June 30, 2010
_-- ASSETS
Cash and investmentr $ 7,692,794
Restricted cash and investments:
Held by fiscal agents 103,558,862
Total assets $ 111,251,656
LIABILITIES
Due to bondholders $ 111,251,656
Total liabilities $ 111,251,656
See attompanying Notes to Basic Financial Statements.
9-~2
1/13/2011
NOTES TO BASIC
FINANCIAL STATEMENTS
9-~3
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Chula Vista, California have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental
Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles. The more significant of the City's accounting policies are
described below.
A. Financial Reporting Entity
The City of Chula Vista, California (City), incorporated in 1911, was recognized as a city in the State of
California by election in 1949. The City operates under an elected Council and appointed City Manager
form of government and provides the following services as authorized by its charter: public safety,
community services, engineering services, planning services, public works, general administrative
services and capital improvements.
These basic financial statements present the City and its component units, entities for which the City is
considered to be financially accountable. The City is considered to be financially accountable for an
organization if the City appoints a voting majority of that organizatiori s governing body and either the
City is able to impose its will on that organization or there is a potential for that organization to provide
financial benefits to or impose specific financial burdens on the City. The City is also considered to be
financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to
adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City).
In certain cases, other organizations are included as component units if the nature and significance of
their relationship with the City are such that their exclusion would cause the City's financial statements
to be misleading or incomplete. Blended component units, although legally separate entities are, in
substance, part of the City's operations and data from these units are combined with data of the City.
Each blended component unit has a June 30 year-end. The following entities are reported component
units:
Blended Component Units
The Redevelopment Agenc~of the Cit~of Chula Vista (Agency)
The Agency was created by the City of Chula Vista City Council (City Council) in October 1972. It was
established pursuant to the State of California Health and Safety Code, Section 33000 entitled
"Community Redevelopment Law." Its purpose is to prepare and carry out plans for improvement,
rehabilitafion, and redevelopment of blighted areas within the territorial limits of the City of Chula
Vista. The Agency has been included in the accompanying basic financial statements since the City
Council acts as the Agency's governing board and exerts significant influence over its operations. The
Agency's operations are governmental in nature and, as such, have been included in the special
revenue, capital projects, and debt service funds. The financial statements of the Agency can be
obtained at the Finance Department or online at the City's website at www.ci.chula-vista.ca.us.
9-~4
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the yeaz ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
A. Financial Reporting Entity, Continued
The Chula Vista Industrial Development Authority (Development Aufhori
The Development Authority was formed in February 1982 for the purpose of promoting and
developing commercial, industrial and manufacturing enterprises and encouraging employment. The
governing body of the Development Authority is comprised of the members of the City Council. The
Development Authority's financial data and transactions are included within the capital projects fund
type. The City does not produce separate financial statements for the Development Authority.
The Chula Vista Public Facilities Financier Authority (Financing Authority)
The Financing Authority was established by ordinance, pursuant to the City Charter and Constitution
of the State of California, as a public body, to serve the public purposes of the City. The ordinance was
adopted on April 4, 1995. The governing body of the Financing Authority is comprised of the
consenting members of the City Council. The Financing Authority is authorized to borrow money for
the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of
making loans to the City and/or to refinance outstanding obligations of the City. The financial
statements of the Financing Authority can be obtained at the Finance Department or online at the City's
website at www.ci.chula-vista.ca.us.
The Chula Vista Housing Authority (Housing Authori
The Housing Authority was created by the City of Chula Vista City Council (City Council) in March
1993 to centrally coordinate and administer the City's programs for promoting balanced housing for
families of all income levels. It was established pursuant to the State of California Health and Safety
Code, Section 34200. It is empowered to develop, finance and own low income housing within the
territorial limits of the City of Chula Vista. It uses a variety of local, state, and federal funding sources
to administer and finance these programs. It is also the financing vehicle for the issuance of bonds for
housing programs and services. The Housing Authority's financial data and transactions are included
within the special revenue fund type. The City does not produce separate financial statements for the
Housing Authority.
B. Basis of Presentation, Measurement Focus and Basis of Accounting
The accounts of the City are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for by providing a separate set of self-
balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or
expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is
used to aid management in demonstrating compliance with finance-related legal and contractual
provisions. The minimum number of funds is maintained consistent with legal and managerial
requirements.
Government-Wide Financial Statements
The City's Government-Wide Financial Statements include a Statement of Net Assets and a Statement of
Activities and Changes in Net Assets. These statements present summaries of governmental activities and
business-type activities for the City, the primary government, accompanied by a total column. Fiduciary
activities of the City are not included in these statements.
9-~a5
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Government-Wide Financial Statements, Continued
These basic financial statements aze presented on an "economic resources" measurement focus and the
accrual basis of_ accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as
well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net
Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting,
revenues are recognized in the period in which they are earned while expenses aze recognized in the period
in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
• Charges for services
• Operating grants and contributions
Capital grants and contributions
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. All internal balances in the Statement of Net Assets have been
eliminated except those representing balances between the governmental activities and the business-
type activities, which are presented as internal balances and eliminated in the total primary
government column. In the Statement of Activities, internal service fund transactions have been
eliminated; however, those transactions between governmental and business-type activities have not
been eliminated. The following interfund activities have been eliminated:
Due to, Due from other funds
• Advances to, Advances from other funds
Transfers in, Transfers out
The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations
currently in effect) as well as the following pronouncements issued on or before November 30,1989, unless
those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards
Board (FASB) Statements and Interpretations, Accounting Principles Boazd (APB) Opiruons, and
Accounting Research Bulletins (ARB) of the committee on Accounting Procedure. The City applies all
applicable FASB Statements and Interpretations issued before November 30, 1989, except those that conflict
with or contradict GASB pronouncements.
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds
aggregated. An accompanying schedule is presented to reconcile and explain the differences in net
assets as presented in these statements to the net assets presented in the government-wide financial
statements. The City has presented all major funds that met those qualifications.
9-~6
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Governmental Fund Financial Statements, Continued
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the balance sheets. The Statement of Revenues, Expenditures and Changes in
Fund Balances present increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in net current assets. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available
to finance expenditures of the current period.
Revenues are recorded when received in cash, except revenues subject to accrual (up to 7 months after
year-end) are recognized when due. The primary revenue sources, which have been treated as
susceptible to accrual by the City, are property tax, sales tax, special assessments, intergovernmental
revenues, other taxes, interest revenue, rental revenue and certain charges for services. Expenditures
are recorded in the accounting period in which the related fund liability is incurred.
Unearned revenues arise when potential revenues do not meet both the "measurable' and "available'
criteria for recognition in the current period. Unearned revenues also arise when the government
receives resources before it has a legal claim to them, as when grant monies are received prior to
incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are
met or when the government has a legal claim to the resources, the unearned revenue is removed from
the balance sheet and revenue is recognized.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
The City reports the following major governmental funds
General Fund -This is the primary operating fund of the City. It is used to account for all revenues
and expenditures that are not required to be accounted for in another fund.
Sundry Grants Special Revenue Fund -This fund consists of miscellaneous grants/revenues such as:
supplemental law enforcement services, CBAG, California Library Services Act, asset seizure, local
law enforcement block grants, California Recreation grants, Public Safety grants, ARRA grants,
waste management and recycling, energy conservation, emergency shelter program, HOME
program, CDBG program income project, and Community Development Block grants.
Redevelopment Agency Special Revenue Fund -This fund was established to account for the 20% of the
revenue received from tax increment within the redevelopment project areas and is used to fund
low and moderate income housing and related expenditures.
Redevelopment Agency Debt Service Fund -This fund was established to account for debt levies,
rentals, other revenues and payments of principal and interest on Redevelopment loans and
outstanding bonds.
9 ~7
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued -
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Governmental Fund Financial Statements, Continued
City Debt Seroice Fund -This fund was established to account for principal and interest payments on
the City's long-term loans.
Development Impact Capital Projects Fund -This fund was established as a depository of various
development impact fees. The fees are levied against all new development in the City in order to
pay for the construction or improvement of public facIlities as a result of City growth.
Park Acquisition Development Capital Projects Fund -This fund is a depository for fees collected from
property developers for the purpose of providing park, and recreational facilities directly benefifing
and serving residents of the regulated subdivision being developed. This in-lieu fee was adopted
by the City to acquire neighborhood and Community Parkland and to construct parks and
recreational facilities.
Proprietary Fund Financial Statements
Proprietary fund financial statements include a Statement of Net Assets, a Statement of Revenues,
Expenses and Change in Net Assets, and a Statement of Cash Flows for all proprietary funds.
Column representing internal service funds is also presented in these statements. However, internal
service balances and activities have been combined with the governmental activities in the government-
wide financial statements. The City's internal service funds include two individual funds which
provide services directly to other City funds. These areas of service include Fleet and Vehicle
Maintenance and Information Technology Replacement.
Proprietary funds are accounted for using the "economic resources' measurement focus and the accrual
basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included
on the Statement of Net Assets. The Statement of Revenues, Expenses and Change in Fund Net Assets
presents increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
recognized in the period in which liability is incurred.
Operating revenues in the proprietary funds are those revenues that are generated from the primary
operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses
are those expenses that are essential to the primary operations of the fund. All other expenses are
reported as non-operating expenses.
The City reports the following major proprietary funds:
Sewer Enterprise Fund -This fund consists of several funds that are used to account for sewer
activities:
The Sewer Income Fund is a depository for all monies collected to cover the cost of connecting
properties to the City's public sewer system. All monies received may be used only for the
acquisition, construcflon, reconstruction, maintenance and operation of sanitation or sewerage
facilities.
9-,~8
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Presentation, Measurement Focus and Basis of Accounting, Continued
Proprietary Fund Financial Statements, Continued
The Special Sewer Fund is used to account for the sale of the city's excess Metropolitan Sewerage
System capacity. Use of monies in this fund is determined by the City Council.
The Trunk Sewer Capital Reserve Fund is used to account for sewerage facility participation fee
received from owner or person making application for a permit to develop or modify use of any
residential, commercial, industrial or other property, which increases the volume of flow into the
City sewer system. All monies received shall be used for the enlargement of sewer facilities of
the City so as to enhance efficiency of utilization and/or adequacy of capacity and for plam~ing
and/or evaluating any future proposals for area wide sewage treatment and/or water
reclamation systems or facilities.
The Sewer Service Revenue Fund is a depository for all monies collected from the monthly sewer
service charge. Monies in this fund may be used for construction, maintenance, or operation of
sewer.
The Internal Service Funds are funds used to charge other City funds for fleet management and
technology replacement services provided.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Assets. The City's fiduciary funds
represent agency funds. Agency funds are custodial in nature (assets equal liabilities) and do not
involve measurement of results of operations. The agency funds are accounted for on the accrual basis
of accounting as are the Proprietary funds explained above.
Fiduciary fund types are accounted for according to the nature of the fund. The City has only agency
funds, which are purely custodial in nature (assets equal liabilities), and thus do not involve
measurement of results of operations.
These funds are used to account for money and property held by the City as trustee or custodian. They
are also used to account for various assessment districts for which the City acts as an agent for debt
service activities.
C. Use of Restricted and Unrestricted Net Assets
When an expense is incurred for purposes for which both restricted and unrestricted net assets are
available, the City's policy is to apply restricted net assets first.
D. Encumbrances
Formal budgetary integration is employed as a management control device. Encumbrance accounting,
under which purchase orders, contracts and other commitments for the expenditure of monies are
recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of
formal budgetary integration. Encumbrances outstanding at year-end are reported as reservations of
fund balances and do not constitute GAAP basis expenditures or liabilities because the commitments
will be honored during the subsequent year.
9 ~9
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
E. Cash, Cash Equivalents and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and
investment amounts, with original maturities of three months or less, to be cash equivalents.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments
and for External Investmeni-Pools, highly liquid market investments with maturities of one year or less at
time of purchase are stated at amortized cost. All other investments are stated at fair value. Market
value is used as fair value for those securities for which market quotations are readily available. The
City reported its investments at fair value and the unrealized losses on investments amounted to $615,471
for the fiscal year ended June 30, 2010.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF) which has invested a portion of the pool funds in Structured Notes and Asset-
backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State
of California collateralizing these investments. In addition, these Structured Notes and Asset-backed
Securities are subject to market risk as to change in interest rates.
The statement of cash flows requires presentation of "cash and cash equivalents'. For the purposes of
the statement of cash flows, the City considers all proprietary fund pooled cash and investments as
"cash and cash equivalents", as such funds are available to the various funds as needed.
In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (An amendment of GASB
Statement No. 3), certain disclosure requirements, if applicable, for Deposits and Investment Risks in the
following areas:
Interest Rate Risk
~ Credit Risk
- Overall
- Custodial Credit Risk
- Concentration of Credit Risk
Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and
investments, highly sensitive investments, credit quality at year-end and other disclosures.
F. Inventories and Prepaid items
Inventories are valued on an average-cost basis which are adjusted to annual physical counts or
estimates under the consumption method of accounting and are recorded in the internal service fund.
Prepaid items are items the City has paid in advance and will receive future benefit from. They are
recorded in the General Fund.
G. Restricted Assets
Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of long-term
debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds,
certificate of participation or tax allocation bonds and have been invested only as permitted by specific
State statutes or applicable City ordinance, resolution or bond indenture.
9-~0
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
H. CapitalAsssts
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not
available. Donated fixed assets are valued at their estimated fair market value on the date donated.
City policy has set the capitalization threshold for reporting capital assets at $5,000 for equipment and
$100,000 for infrastructure. Depreciation is recorded on a straight-line basis over estimated useful lives
of the assets as follows:
Buildings 50 years
Improvements other than buildings 50 years
Machinery and equipment 5-12 years
Infrastructure 30-75 years
In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which
requires the inclusion of infrastructure capital assets in local governments' basic financial statements.
In accordance with GASB Statement No. 34, the City has included all infrastructures.
The City defines infrastructure as the basic physical assets that allow the City to function. The assets
include streets, sewer, and park lands. Each major infrastructure system can be divided into
subsystems. For example the street system can be subdivided into pavement, curb and gutters,
sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the
basic financial statements. The appropriate operating department maintains information regarding the
subsystems.
Interest accrued during capital assets construction, if any, is capitalized for the business-type funds as
part of the asset cost.
For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement
No. 34 for infrastructure reporting. The City commissioned an appraisal of City awned infrastructure
and property as of June 30, 2001. This appraisal determined the original cost, which is defined as the
actual cost to acquire new property in accordance with market prices at the time of first
construction/acquisition.
Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs
appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of
the price increase from the construction/acquisition date to the current date. The accumulated
depreciation, defined as the total depreciafion from the date of construction/acquisition to the current
date on a straight line, unrecovered cost method was computed using industry accepted life
expectancies for each infrastructure subsystem. The book value was then computed by deducting the
accumulated depreciation from the original cost.
9 ~1
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued -
I. Compensated Absences
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as expenses and
liabilities as incurred.
Fund Financial Statements
For governmental funds, compensated absences are recorded as expenditures in the years paid, as it is
the City's policy to liquidate any unpaid compensated absences at June 30 from future resources, rather
than currently available financial resources. The General Fund is typically used to liquidate
compensated absences. In proprietary funds, compensated absences are expensed to the various funds
in the period they are earned, and such fund's share of the unpaid liability is recorded as a long-term
liability of the fund.
J. Long-Term Debt
Government-Wide Financial Statements
Long-term debt and other financial obligations are reported as liabilities in the appropriate funds.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of the applicable premium or
discount. Issuance costs are reported as deferred charges.
Fund Financial Statements
The fund financial statements do not present long-term debt but are shown in the Reconciliation of the
Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets.
K Property Taxes
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1
of each year. Property taxes become delinquent on December 10 and April 10, for the first and second
installments, respectively. The lien date is January 1. The County of San Diego, California (County)
bills and collects property taxes and remits them to the City according to a payment schedule
established by the County.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and
can increase the property tax rate no more than 2% per year or the current CPI, whichever is less. The
City receives a share of this basic tax levy proportionate to what it received during the years 1980-1981.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the
taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date
are not considered available as a resource that can be used to finance the current year operations of the
City and, therefore, are not recorded as revenue unfil collected.
No allowance for doubtful accounts was considered necessary
9-~2
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
L. Use of Estimates
The preparation of basic financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts
and disclosures. Actual results could differ from these estimates and assumptions.
M. Public Facilities Financing
Interest costs incurred from the date of borrowing to the completion of the improvement project(s) are
capitalized, net of interest earnings, on all proprietary fund assets acquired with tax-exempt debt.
N. NetAssets/Fund Balances
Government-Wide Financial Statements
Net assets are categorized as follows:
Invested in Capital Assets, Net of Related Debt -This amount consists of capital assets net of
accumulated depreciation and reduced by outstanding debt that attributed to the acquisition,
construction, or improvement of the assets.
Restricted Net Assets -This amount is restricted by external creditors, grantors, contributors, or laws
or regulations of other governments.
Unrestricted Nef Assets -This amount is all net assets that do not meet the definition of "invested in
capital assets, net of related debt" or "restricted net assets:'
Fund Financial Statements
Reservations of fund balances of governmental funds and retained earnings of proprietary funds are
created to either satisfy legal covenants, including State laws, that require a portion of the fund equity
be segregated or identify the portion of the fund equity not available for future expenditures.
O. GASB Statement No. 51 Implementation
In June 2007, GASB issued Statement No. 51, Accounting and Financial Reporting for Intangible Assets.
This Statement requires that al intangible assets not specifically excluded by its scope provisions be
classified as capital assets. Accordingly, existing authoritative guidance related to the accounting and
financial reporting for capital assets should be applied to these intangible assets, as applicable. This
Statement also provides authoritative guidance that specifically addresses the nature of these intangible
assets. Such guidance should be applied in addition to the existing authoritative guidance for capital
assets. Management evaluated the criteria and determined that the adoption of GASB Statement No. 51
did not have any on the financial position, results of operations or cash flows of the City.
9-~3
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS
The following is a summary of pooled cash and investments, including restricted cash and investments at
June 30, 2010:
Government-Wide Statement of Net Assets Fiduciary Funds
Gwemmental Busiress Type Statement of
Activities Activities Total Net Assets Total
Cash and Investments $ 127,540,924 $ 57,138,238 $ 184,679,162 $ 7,692,'A4 $ 192371,956
Restricted Gsh and Investments:
Held by Gty $ 11,958,657 $ - $ 11,958b57 $ - $ 11,958,657
Held by fiscal agents 18,776,961 - 18,776,961 103,558,862 122,335,823
Total restricted cash and investments $ 30,735,618 S - $ 30,733b18 $ 103,558,862 $ 134,294,480
Total cash and investments $ 158,D6,542 $ 37,138,218 $ 215,414,780 $ 111,211,656 $ 326,666,336
Cash, cash equivalents, and investments consisted of the following at June 30, 2010:
Petty cash $ 5,259
Deports with fmamal institutirn 15,445,199
InveslRtents 185,ffi0,141
Inveshnentsheldbybmd tnutee 122,335,ffi7
Total cash and immstmenls $ 3,666,316
A. Cash Deposits
The carrying amount of the City's cash deposits were $18,445,199 at June 30, 2010. Bank balances before
reconciling items were $18,116,633 at that date, the total amount of which was insured or collateralized with
securities held by the pledging financial institutions in the City's name as discussed below.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be
held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and
investments is allocated on an accounting period basis to the various funds based on the period-end cash
and investment balances. Interest income from cash and investments with fiscal agents is credited directly
to the related fund.
9-s~4
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
B. Investments
As of June 30, 2010, the City had the following investments and maturities:
Investment Type
LAff
Time L~posits
San Diego County Irrvest Paol
CalTrustShort Term Fund
Corporate Bonds
Federal Home Lean Bank
Federal National Mortgage Assn
Federal Home Loan Mort Corp
Federal Farm Credit Rank
Held by bond iruslee:
US. Treasury
Investment Agreements
Mutual Funds
Total
Investment Mahsities (in years)
Fair Value lyeaz orfecver lto2yeazs 2to3 years 3to4years 4to5years OverS years
$ 41,784b33 $ 41,781,633 $ - $ - $ - $ - $ -
185,041 185,044 _ _ _ - _
SA00,323 5,000,323 _ _ - _ _
lAl1SS9 1,011,589 - - - - -
4,118,780 - 4,118,7&1 - - - -
49,351,875 - 32,170,314 17,181,561 - -
3~A64,125 - 4A03,750 6,016,875 7A41,875 3,005,625 -
39,209,145 - 10,041,250 11,056,610 15A74,235 3,037,050 -
25,1.`,0,627 - - 13,037,189 12A53,438 - -
40551,843 31,477,758 - 6,932,705 2,144,3 _ _
x,166,334 10,265,501 - 1,132,000 - - 13,765,830
S6b14,650 %614,650 _ _ _ _ _
$ 3,215,963 $ 196,342,501 $ 18,163,780 $ 70,405,693 $ 53,495,489 $ 6,042,675 $ 13,765,830
Investments Authorized by the California Government Code and the City's Investments Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies
certain provisions of the California Government Code (or the City's invesiment policy, where more
restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does
not address investments of debt proceeds held by bond trustee that are governed by the provisions of
debt agreements of the City, rather than the general provisions of the California Government Code or
the City's investment policy.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio* One Issuer
Bankers' Acceptances 180 days 40 % 30
Negotiable Certificates of Deposit 5 years 30 % None
Commercial Paper 270 days 25 % 10°5
State and Local Agency Bond Issues 5 years None None
U.S. Treasury Obligations 5 years None None
U.S. Agency Securifies - 5 yeazs None None
Repurchase Agreement 90 days None None
Reverse-Repurchase Agreements 90 days 20 % None
Medium-Term Corporate Notes 5 years 30 % None
Time Certificates of Deposit 3 years None None
Money Market Funds 5 years 15 % None
Local Agency Investment Fund (LAIF) N/A None $40 Million
* Excluding amounts held by bond trustee that are not subject to California Government Code restritlion
9-~5
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
- 2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
B. Investments, Continued
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement,
rather than the general provisions of the California Government Code or the City's investment policy.
The table below identifies certain provisions of these debt agreements that address interest rate risk,
credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio One Issuer
U.S. Treasury Obligations None None None
Federal Home Loan Mortgage Corporafion None None None
Farm Credit Banks None None None
Federal Home Loan Banks None None None
Federal National Mortgage Association None None None
Student Loan Marketing Association None None None
Financing Corporafion (FICO) None None None
Resolution Funding Corporafion None None None
Certificates of Deposits, Time Deposits
and Bankers' Acceptances 30 Days None None
Commercial Paper 270 Days None None
Money Market Funds N/A None None
State Obligations None None None
Municipal Obligations None None None
Repurchase Agreements None None None
Investment Agreements None None None
Local Agency Investment Fund (LAIF) None None None
C. Risk Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest rates, the City's
investment policy provides that final maturities of securities cannot exceed five years. Specific
maturities of investments depend on liquidity needs. As of June 30, 2010, the City's pooled cash and
investments had the following maturities:
Maturity Percentage of Investment
Less than one year 26%
One to two years 10%
Two to three years 34%
Three to four years 27%
Four to five years 3°k
The weighted average maturity of the portfolio was 2.17 years.
9~6
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS; Continued
C. Risk Disclosures, Continued
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. To be eligible to receive City money, a bank, savings association, federal
association, or federally insured industrial loan company shall have received an overall rating of not
less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory
agency of its record of meeting the credit needs of California's communities, including low- and
moderate-income neighborhoods.
The City's investments are rated by the nationally recognized statistical rating organizations as follows:
Standard
Investment Type Fair Value Moody's & Poor's
State of California -Local Agency Investment Fund $ 41,784,633 Not Rated Not Rated
Time Deposits 185,044 Not Rated Not Rated
San Diego County Investment Pool 5,000,323 Not Rated Not Rated
CalTrust Short Term Fund 1,011,589 Sl+ Aaf
Corporate Bonds 4,118,780 Aaa AAA
Federal Home Loan Bank 49,351,875 Aaa AAA
Federal National Mortgage Association 20,068,125 Aaa AAA
Federal Home Loan Mortgage Corporation 39,209,145 Aaa AAA
Federal Farm Credit Bank 25,150,627 Aaa AAA
$ 185,880,141
Custodial Credit Risk
Demand Deposits:
The California Government Code requires California banks and savings and loan associations to secure the
City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the City's name.
The market value of pledged securities must equal at least 110% of the City's cash deposits. California
law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a
value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash
deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City,
however, has not waived the collateralization requirements.
Investments:
For an investment, custodial credit risk is the risk that, in the event of the failure of the counter party,
the City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All securities, with the exception of LAIF and other pooled investments,
are held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal
Reserve Bank.
9-5~~
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH, CASH EQUIVALENTS AND INVESTMENTS, Continued
C. Risk Disclosures, Continued
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. Investments in any one issuer that represent
5% or more of total City's investments are as follows:
Issuer Investment Tyoe Fair Value
Federal Home Loan Bank Federal Agency Securities $ 49,351,877
Federal Nafional Mortgage Associafion Federal Agency Securities 20,068,123
Federal Home Loan Mortgage Corporation Federal Agency Securities 39,209,145
Federal Farm Credit Bank Federal Agency Securities 25,150,627
D. Investments in Local Agency Investment Fund
The City invests in the Local Agency Investment Fund (LAIF), a State of California investment pool.
LAIF determines fair value on its investment portfolio based on market quotations for those securities
where market quotations are readily available and based on amortized cost or best estimate for those
securities where market value is not readily available.
The City valued its investments in LAIF as of June 30, 2010, at amortized cost which approximate the
fair value. The fair value is calculated by multiplying the account balance with LAIF times a fair value
factor of 1.001643776 which is determined by LAIF. This fair value factor was determined by dividing
all LAIF participants' total aggregate amortized cost by total aggregate fair value.
The Cit}~s investments with Local Agency Investment Funds (LAIF) at June 30, 2010, included a portion of
the pooled funds invested in Structured Notes and Asset-Backed Securities. These investments included
the following:
Structured Notes are debt securities (other than asset-backed securities) whose cash flow
characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more
indices and/or that have embedded forwards or opfions.
• Asset-Backed Securities, the bulls of which are mortgage-backed securities, entitle their purchasers
to receive a share of the cash flows from a pool of assets such as principal and interest repayments
from a pool of mortgages (such as CMO) or credit cazd receivables.
As of June 30, 2010, the City had $41,784,633 invested in LAIF, which had invested 5.42% of the pool
investment funds in Structured Notes and Asset-Backed Securities.
9-s~8
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. RECEIVABLES
A. Accounts Receivable
At June 30, 2010, the City had the following accounts and other receivable:
Governmental Business-Type
Activities Activities
Storm drain fees $ 78,493 $ -
Sewerservice fees - 4,753,468
Staff time reimbursement 592,391 -
Miscellazreous 6,834 -
Total $ 677,718 $ 4,753,468
B. Taxes Receivable
At June 30, 2010, the City had the following taxes receivable:
Governmental
Activities
Sales Tax $ 6,056,653
Highway Users Tax 347,910
Property Tax 1,517,598
Utility Users Tax 870,499
Transient Occupancy Tax 258,121
FrancMse Fee Tax 1,662,943
Total $ 10,713,724
C. Loans Receivable
Total
$ 75,493
4,753,468
592,391
6,834
$ 5,431,186
At June 30, 2010, the City had the following loans receivable, including principal and accrued interest:
Governmental Activities
Prmdpal
South Bay Community Services $ 3,510,084
Heritage (South Bay Community Villas L.P.) 4,400,000
Girls and Boys Club Conshvction Loan 106,250
Rancho Vista Housing (Chelsea Investment Corporation) 1,500,000
St Regis Park (Chelsea Investment Corp) 1,387,152
Chula Vista Rehabilitation CHIl' Loans 2,119,864
Park Village Apts (Civic Center Barrio Housing Corporation) 210,934
Mobile Home Assistanm Progams 55,952
Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000
Main Plaza (Alpha IIl [kvelopment Inc.) 1,800,000
Seniors on Broadway (MAAC Projat) 3511,194
The landings (Chelsea Investment Corp) 1,100,000
First Time Home Buyers Progam 599,654
Neighborhood Stabilization First Time Home Buyer Progam 607,300
NSPRental Housing Progam 1,000,000
Total $ 27,588,3&2
Deferred Interest Total
$ 1,810,157 $ 5,320,241
1,129,710 SS29,710
- 106,250
263,220 1,763,220
834,185 2,221,337
170A88 2,289,952
- 210,934
- 55,952
669,937 6,349,937
282,813 2,082,813
437,114 3,998,308
68,522 1,166522
599,654
607,300
1,000,000
$ 5,665,746 $ 33;254,130
9~~9
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. RECEIVABLES, Continued
C. Loans Receivable, Continued
South Bau Community Services
In 1998, the Agency entered into several loan agreements with South Bay Community Services, a
California non-profit public benefit corporation. Prior years' loan was made to South Bay Community
Services for the purpose of purchasing a 14-unit apartment building. In fiscal year 1998, a loan to fund
the Trolley Terrace 13-unit project and the Cordova Village 40-unit project were made. These projects
are to provide housing to very low-income families. The funds were made available to the City through
a drawdown from the U.S. Department of Housing and Urban Development. Included in the current
year balance is the $887,995 loaned by the Agency. Deed of trusts and assignment of rents secure the
notes. Principal and interest are payable annually out of any and all residual receipts derived from the
property and/or operation of the property. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund and in the Agency's Low & Moderate Housing Fund. Interest accrues annually
on the unpaid balance from rates ranging from 3% to 6%. At June 30, 2010, the outstanding balance of
the loan was $5,320,241 which included deferred interest accrual of $1,810,157.
Heritage (South Ba~ommunitu Villas, L.P.)
In 2002, the Agency entered into a loan agreement with South Bay Community Villas, L.P. for the
development of the Heritage Town Center multi-family rental housing project. The Redevelopment
Agency's (Agency) assistance is in the form of residual receipt loan secured by a promissory note and
deed of trust. The outstanding principal and interest on the loan will be repaid over fifty five years and
accrues interest at 3% per annum. Payment of principal and interest on the Agency loan shall be made
on an annual basis, out of a fund equal to fifty percent of the net cash flow of the project (residual
receipts) after debt service on bonds, payment of deferred developers fee, and reasonable operating
expense have been paid. Fund balance has been reserved in the Low and Moderate Income Housing
Fund. At June 30, 2010, the outstanding balance of the loan was $5,529,710 which included deferred
interest accrual of $1,129,710.
Girls and Bous Club Construction Loan
The City has made a loan of $250,000 for construction of a new facility for the Boys and Girls Club. The
loan is interest free and will be repaid with equal annual payments over 20 years, starting in February
1999. Fund balance has been reserved in the General Fund. At June 30, 2010, the outstanding balance of
the loan was $106,250.
Rancho Vista Housing (Chelsea Investment Cor-yoration
In 2000, the City and Agency loaned $1,500,000 to CIC Eastlake, L.P. for the development and operation
of Rancho Vista Housing project, a multifamily affordable housing project. The loan is secured by
promissory notes and deed of trust. The outstanding principal and interest amount of the loan is to be
repaid over-fifty-five (55) years and accrues at the simple interest rate of three (3%) percent per annum.
Payment of principal and interest, or portions thereof, on the loan is made on an annual basis, out of a
fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2010, the outstanding
balance of the loan was $1,763,220 which included deferred interest accrual of $263,220.
9~0
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. RECEIVABLES, Continued
C. Loans Receivable, Continued
St. Regis Park (Chelsea Investment Corporafion)
In 2000, the Agency entered into a loan agreement with Chelsea Investment Corporation for the
acquisition and rehabilitation of the 119-unit Pear Tree Apartments at 1025 Broadway. All units will be
affordable to low-income households. The loan is secured by a Deed of Trust and will accrue 6%
interest for 52 years. Payment of principal and interest is made on an annual basis out of a fund equal
to 90% of the residual receipts. At June 30, 2010, the outstanding balance of the loan was $2,221,337
which included deferred interest accrual of $834,185.
Chula Vista Rehaln'litation CHIP Loans
The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the direct
control of the Agency. CHIP offers deferred and low interest rate home improvement loans to qualified
borrowers residing within a target area. Loan repayments are re-deposited into the program cash
accounts and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund and in the Agency's Low & Moderate Housing Fund. At June 30, 2010, the
outstanding balance of the loan was $2,289,952 which included deferred interest accrual of $170,088.
Park Village Apartments (Civic Center Barrio Housing Corporation)
In 1991, the Agency entered into a loan agreement with the Civic Center Barrio Housing Corporation, a
California non-profit public benefit corporation. The loan was made for the purchase of land and the
development of a 28-unit low-income housing project. During 1992, the loan was assigned to Park
VIllage Apartments Ltd., a California limited partnership in which Civic Center Barrio Housing
Corporation is the managing general partner. The loan is secured by a deed of trust on the property
and assignment of rents. Principal and interest are payable monthly. Interest accrues annually at 5% of
the unpaid principal balance of the note. Fund balance has been reserved in the Redevelopment
Agency Special Revenue Fund. At June 30, 2010, the outstanding balance of the loan was $210,934.
Mobile Home Assistance Programs
The Agency entered into agreements with eligible residents of the Orange Tree Mobile home Park,
whereby the Agency loaned $250,030 as permanent financing assistance to residents for the purpose of
purchasing certain mobile home property. The loans are secured by deeds of trust on the property and
mature in 2017 or when the property is sold. Contingent interest will be charged based on calculations
specified in the agreement. Fund balance has been reserved in the Redevelopment Agency Special
Revenue Fund. At June 30, 2010, the outstanding balance of the loan was $55,952.
9-~1
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010 '
3. RECEIVABLES, Continued
C. Loans Receivable, Continued
Los Vecinos (Wakeland Housing and Develotiment Corooration
In 2008, the Agency entered into a loan agreement with Wakeland Housing and Development
Corporation to assist the borrower in constructing 41 affordable multifamily units for occupancy by
extremely low, very low and lower income households. The loan amount of $5,680,000 was funded by
the Agency's Low & Moderate Income Housing Fund. The loan bears an interest rate of 5% per annum.
Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the
"Residual Receipts' for years 1-30, 75% of the Residual Receipts' for years 31-54, unti155 years from the
date the Improvement are Placed in Service, at which time all principal and unpaid interest is due and
payable. The improvements were placed in service on February 7, 2008. At June 30, 2010, the
outstanding balance of the loan was $6,349,937 which included deferred interest accrual of $669,937.
Main Plaza (Alpha III DevelopmentlncJ
In 2003, the Agency entered into a loan agreement with Main Plaza, LP (Borrower) to assist the
borrower in acquiring and improving certain real property for occupancy by very low, lower and low
and moderate income households. The loan bears an interest rate of 3% per annum. The loan is due
and payable on the date that is 55 years from the date of the Agency's issuance of the Certificate of
Completion, which is in 2061. At June 30, 2010, the outstanding balance of the loan was $2,082,813
which included deferred interest accrual of $282,813.
Seniors on Broadway (MAAC Project
The Agency entered into a loan agreement with Seniors on Broadway Limited Partnership to assist the
borrower in acquiring and improving certain real property for occupancy by very low, lower and low
and moderate income households. The loan bears an interest rate of 3% per annum. The loan is due
and payable on the date that is 55 years from the date of the Agency's issuance of the Certificate of
Completion. At June 30, 2010, the outstanding balance of the loan was $3,948,308 which included
deferred interest accrual of $437,114.
The Landis (Chelsea Investment Corporation)
The Agency entered into a loan agreement with CIC Landings, L.P. to assist the borrower in
constructing 92 affordable multifamily apartment units for occupancy by extremely low, very low and
lower income households. The loan bears an interest rate of 3% per annum. The loan is due and
payable each and every year commencing with the first anniversary of the issuance of the Certificate of
Completion by the City in an amount equal to 50% of the residual receipts. At June 30, 2010, the
outstanding balance of the loan was $1,168,522 which included deferred interest accrual of $68,522.
9-~2
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. RECEIVABLES, Continued
C. Loans Receivable
First Time Home Buuers program
The Chula Vista First-Time Homebuyer Program is under the direct control of the Housing Authority
and funded through U.S. Department of Housing and Urban Development HOME funds. Currently
administered by Community HousingWorks, the Program offers equity share deferred home gap
financing loans to qualified borrowers. Loan repayments are re-deposited into the program cash
accounts and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund. At June 30, 2010, the outstanding balance of the loan was $599,654.
Neighborhood Stabilization First Time Home Burrs program
The Chula Vista Neighborhood Stabilization First-Time Homebuyer Program (NS FTHB) and
Neighborhood StabIlization Resale Program (NSRP) are under the direct control of the Agency and
funded through U.S. Department of Housing and Urban Development Neighborhood Stabilization
funds. Currently administered by Community HousingWorks, the Program offers equity share
deferred home gap financing loans to qualified borrowers and an acquisition, rehabilitation, and resale
option to those qualifying in targeted areas. Loan repayments are re-deposited into the program cash
accounts and are redistributed as future loans. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund. At June 30, 2010, the outstanding balance of the loan was $607,300.
NSP Rental Housing program
The Agency entered into a loan agreement with San Diego Community Housing Corporation to acquire
and rehabilitate rental housing for very low income households. The loan is secured by promissory
notes and deed of trust. The outstanding principal and interest amount of the loan will be repaid over
fifty-five (55) years and shall accrue at the simple interest rate of three (3%) percent per annum.
Principal and interest are payable annually out of a fund equal to 50% of residual receipts derived from
the property and/or operation of the property. Fund balance has been reserved in the Sundry Grants
Special Revenue Fund. At June 30, 2010, the outstanding balance of the loan was $1,000,000.
9-~3
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. INTERFUND TRAiQSACTIONS
A. Government-Wide Financial Statements
Internal Balance
At June 30, 2010, the City had the following internal balances:
8
w
Busiress-type Activities
Total
Advances to
Governmental
Activities Total
$ 13,841,666 $ 13,841,666
$ 13,841,666 $ 13,841b66
Transfers
At June 30, 2010, the City had the following transfers:
.C,
.".
w
Business-type Activities
~"' Total
Transfers Out
Governmental
Activities Total
$ 3,473,571 $ 3,473,571
$ 3,473,571 $ 3,473,571
B. Fund Financial Statements
Due To, Due From
As of June 30, 2010, balances were as follows:
3
w
m
~ Geneml Fund
'~ RDA Spec ial Revenue Funds
~ Non-major Governmental Funds
Total
Payable Fund
Grants -
Special Non-major
Revenue Governmental
Funds Funds Total
$ 259,666 $ - $ 259,666
733,302 - 733,302
23,503 1,380,040 1,403,543
$ 1,016,471 $ 1,380,040 $ 2,396511
The amounts of due to and due from for all funds represent one day loans which were made to cover
negative cash situations that resulted from reimbursements not being received as of June 30, 2010.
9-~4
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. INTERFUND TRANSACTIONS, Continued -
B. Fund Financial Statements, Continued
Long-Term Advances
As of June 30, 2010, balances were as follows:
Fi
it
w
N
e Nortn>ajor Enterprise Funds
~ RDA Debt ~rvice Fund
C Gty Debt Service Fund
Total
Advarses to
Development
Impact
General Redevelopment Capital
Fund Agency Projects
- $ - $ -
Non-major SewEr
Goverruuartal Enterprise
Funds Funds Total
$ 3,976516 $ 3,976,516
24,302,452 4,164,850 - 4,953,566 - 33,420,868
1502,553 - 11,091,216 - 13,541,666 26,438,435
$ 25,805,005 $ 4,164,550 $ 11,094,216 $ 4,953,566 $ 17,818,182 $ 63,835,819
The Agency has entered into reimbursement agreements with the City to reimburse the City for certain
lease payments made by the City under various lease agreements. The balance as of June 30, 2010, was
$23,041,067.
The City Council authorized various loans to the Agency for operating purposes. The terms of the loans
are indefinite. The balance as of June 30, 2010, is $1,261,385.
The City Council authorized loans to Public Facilities DIF for $12,412,390 and Western TDIF for
$184,379. The Public Facilities DIF loan for $5,200,000 is due and payable in 13 years, with the first
payment due in fiscal year 2012/2013 at an interest rate of 3.80% based on the pooled investment rate.
The Public Facilities DIF loan for $5,300,000 is due and payable in 13 years, with the first payment due
in fiscal year 2012/2013 at an interest rate of .56% based on the pooled investment rate.
The Redevelopment Agency Capital Projects Fund advanced funds in the amount of $4,953,566 to
Redevelopment Agency Debt Service Fund for capital improvement projects and operating expenses
and the Redevelopment Agency Special Revenue Fund advanced $4,164,850 to pay the ERAF obligation.
The terms of the advances are indefinite. The balance was $9,118,416 at June 30, 2010.
The City Council authorized loans with indefinite terms from Trunk Sewer fund to Special Assessment
District Improvement Funds for $3,826, Salt Creek for $16,191,407, Storm Drain fund for $876,832, and
$746,177 from Sewer Facility fund. The Assessment District loans are due and payable in 10 years, with
the first payment due upon completion of the project.
9-~5
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. INTERFUND TRANSAC 1TONS, Continued
B. Fund Financial Statements, Continued
Transfers
Transfers for the year ended June 30, 2010, were as follows:
Tnnsfe+s (Nt
Soceia]Revenue Funds Deb Service Funds Development Non-major Sewer Nomnajor Inremal
Sundry Impact Gov't Enterpriss Enterprise Service
General Grants RDA RDA Cirv Fund Fonds Funds Funds Fund Total
S - 1'93 8 -
8 240 8 - 8 - 8 6,931,922 $ e,U1,94 8 81,991 8 ],382 $ 10,903,068
General ,
Sundry Gants
Spxial Revenue 154,260 - - - - - - - - - 158260
Redevelopment Agenry
- ]16
928 -
- - 2 - - 2,]]6,928
Special Revenue - - - ,
,
RDA Debt Service - - - - - - 4,284,122 - 250,OW - 9.534,122
City Debe Service - - - - - - 3A,1>7 - - 39849
Development Impact
Capital Projects - - - - 5,300,000 - 1,4@,000 - - - 6,]02,030
Non-major
Governmental Funds fi194.236 995,491 252,192 4.1 W.694 - 4.995,429 19,966,391 - 'b324399
Total 8 6,352,496 8 1,015,669 8 D2,ll2 8 4,160,694 8 5,300,000 $ 4,995,429 835,]59526 8 3,141,194 S 331,991 8 ]382 861,296,934
General Fund -Operating support to reimburse the General Fund for City staff services and equipment.
Total amount of reimbursement was $10,403,068.
Redeveloyment A~encu Syecial Revenue Fund -transferring 20 % of gross tax increment per Health and
Safety Code 33334.2 in the amount of $916,007 from Bayfront Town Center I and $1,860,921 from
Merged Capital Project.
Sundru Grants Special Revenue Fund- transferring the inmate welfare fund in the amount of $63,944,
waste management and recycling in the amount of $59,740 and matching the federal grant in the
amount of $34,576.
RDA Debt Service -Funding the debt services fund for repayment of various long-term obligations
amounted to $4,534,122.
Citu Debt Service -Funding debt service funds for repayment of various long-term obligations amounted
to $398,157.
9-~6
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. INTERFUND TRANSACTIONS, Continued --
B. Fund Financial Statements, Continued
Transfers, Continued
Development Impact Capital Projects -Funding the infrastructure improvements and borrowing the funds
in the amount of $5,300,000 from the Transportation Development Impact Fee and refunding $1,402,000
from the Other Transportation Program funds to the Transportation Development Impact Fee for
capital projects.
Non-major Governmental Funds -Funding debt service funds for repayment of various long-term
obligations and to fund various capital improvement projects amounted to $36,324,399. Other transfers
were for operating support and staff services in the amount of $7,000 from Home Program, $34,000
from CDBG, $115,569 from Low and Moderate Income Housing, and $116,603 from RDA Housing
Program to Chula Vista Housing Authority.
5. CAPITAL ASSETS
Government-Wide Financial Statements
The following is a summary of capital assets for governmental activities for the year ended June 30, 2010:
Balance C[P Balance
July 1, 2009 Additions Deletions Transfers June 30, 2010
Non-depreciable assets:
Land $ 83,775,771 $ - $ - $ - $ 83,775,771
Construction in progress 6,349$41 22,348,774 - (507,405) 28,190,910
Total nondepreciable assets 90,125,312 22,348,774 - (507,405) 111,966,681
Depreciable assets:
Buildings 213,263,262 - - 367,820 213,631,082
Improvements other than buildings 119b31S77 - - 139585 119,771,162
Machinery and equipment 35,159,495 996,892 (1A45$02) - 34,710585
Infrastructure 605,093,087 17,026,275 - - 622,119,312
Subtotal 973,147A21 _ 18,023,117 (1,445,802) 507,405 990,232,141
Less accumulated depreciation:
Buildings (31,669,104) (4,268,957) - - (35,938,061)
Improvements other than buildings (31,021552) (2,366,431) - - (33,387,983)
Machinery and equipment (29,751,141) (1,833,998) 1A30,690 - (30,154,449)
Infrastructure (168,724,363) (16,765,917) - - (185,490,280)
Total accumulated depreciation (261,166,160) (25,235,303) 1,430,690 - (284,970,773)
Total depreciable assets, net 711,981,261 (7,212,186) (15,112) 507,405 705,261,368
Total governmental acfivities $ 802,105573 $ 15,136588 $ (15,112) $ - $ 817,228,049
9 ~7
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
5. CAPITAL ASSETS, Continued-
Government-Wide Financial Statements, Continued
During the fiscal year ended June 30, 2010, developers donated some infrastructure assets to the City. The
following is a summary of those infrastructure assets donated which were included in the additions
column on the schedule above:
Infrastructure $ 17,026,225
Governmental activities depreciation expenses for capital assets for the year ended June 30, 2010 are as
follows:
General government $ 1,369,012
Public safety 2,323,722
Public works 15,096,199
Parks and recreation 2,535,542
Library 226,073
Internal service ~ 684,755
Total depreciation expense $ 25,235,303
The following is a summary of capital assets for business-type activities:
Non-depreciable assets:
Construction in progress
Total nondepreciable assets
Depreciable assets:
Machinery and equipment
Infrastructure
Subtotal
Less accumulated depreciation:
Machinery and equipment
Infrastructure
Total accumulated depreciation
Total depreciable assets, net
Total business-type activities
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
$ 983,145 $ 1,149,618 $ - $ 2,132,763
983,145 1,149,618 - 2,132,763
13,781,711 650,848 (719,427) 13,713,132
217,889,710 ~ 8,736,488 - 226,626,198
231,671,421 9,387,336 (719,427) 240,339,330
(8,730,280) (1,175,566) 662,159 (9,243,687)
(75,686,725) (5,157,261) - (80,843,986)
(84,417,005) (6,332,827) 662,159 (90,087,673)
147,254,416 3,054,509 (57,268) 150,251,657
$ 148,237,561 S 4,204,127 $ (57,268) $ 152,384,420
Depreciation expenses for business-type activities for the year ended June 30, 2010 are as follows:
Sewer $ 5,424,824
Transit - 848,003
Sewer DIFS 60,000
Total depreciation expense $ 6,332,827
9-~a
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT
Governmental Activities Long-Term Debt
Summary of changes in governmental activities long-term debt for the year ended June 30, 2010 was as
follows:
Balar~e Debt Debt Balance Due in Due in more
July 1, 2009 Issued Retired June 30, 2010 ore year Bran one year
Tax allocation bonds $ 45,830,000 $ - $ (905,000) $ 44,925,000 $ 940,000 $ 43,985,000
Pension obligation bonds 7,000,000 - (2,020,000) 4,980,000 2,325,000 2,655,000
Certifica~ofpartidpation 130,580,000 29,355,000 (20,235,OOD) 139,700,000 3,640,000 136,060,000
ERAFLoan 1,215,000 - (160,000) 1,055,000 170,000 885,000
Section 108 loan 9,500,000 - (287,000) 9,213,000 302,000 8,911,000
Notes payable 861,023 207,372 (33,157) 1,005,238 37,513 997,725
Capital leases 1,859,595 - (371,205) 1,488,390 391,086 1,097,304
Bond premiums 29,531 - (1,181) 28,350 - 28,350
Bond discount (992,091) (425,872) 58,192 (1,859,771) - (1,859,771)
Total $ 195,583,058 $ 28,636,500 $ (23,954,351) $ 200,565,207 $ 7,805,599 $ 192,759,608
A. Tax Allocation Bonds
Balance Debt Debt Balance Due within Due inmore
July 1, 2009 Issued Retired Jure 30, 2010 one year than one yeaz
2006 Senior Tax Allocation
Refunding Bonds, Series A $ 12,580,000 $ - $ (480,000) $ 12,100,000 $ 500,000 $ 11,600,000
2006 Subordinate Tax Allocation
Refunding Bonds,SeriesB 11,625,000 - (425,000) 11,200,000 440,000 10,760,000
2008 Tax Allocation
Refunding Bonds 21,625,000 - - 21,625,000 - 21,625,000
Total $ 45,830,000 $ - $ (905,000) $ 44,925,000 $ 940,000 $ 4'3,985,000
9-~ 9
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued -
A. Tax Allocation Bonds, Continued
2006 Senior Tax Allocation Re ndi~ Bonds, Series A
In July 2006, the Agency issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount
of $13,435,000 to refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project
1994 Senior Tax Allocation Refunding Bonds, Series A, and to satisfy the reserve requirement for the
Bonds and provide for the costs of issuing the Bonds. The original bond proceeds were used in the
acquisition of property, demolition, relocation, public improvements and funding the Low and Mod
Income Housing Project. The bonds consist of serial bonds which mature in 2028. Interest is payable
semiannually on March 1 and September 1 at interest rates ranging from 4.00% to 4.60%. The bonds are
subject to optional redemption on any interest payment date on or after September 1, 2012, at various
redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency and
other funds held under the indenture. The balance outstanding at June 30, 2010 was $12,100,000.
The annual debt service requirements for the 2006 Senior Tax Allocation Refunding Bonds, Series A
outstanding at June 30, 2010 were as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 500,000 $ 517,945 $ 1,017,945
2012 520,000 497,545 1,017,545
2013 540,000 474,995 1,014,995
2014 565,000 450,133 1,015,133
2015 590,000 424,145 1,014,145
2016-2020 3,335,000 1,723,626 5,058,626
2021-2025 4,110,000 922,676 5,032,676
2026-2028 1,940,000 114,540 2,054,540
Total $ 12,100,000 $ 5,125,604 $ 17,225,604
9-~0
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
A. Tax Allocation Bonds, Continued
2006 Subordinate Tax Allocation Refunding Bonds, Series B
In July 2006, the Agency issued $12,325,000 2006 Subordinate Tax Allocation Refunding Bonds, Series B
to refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax
Allocation Refunding Bonds, Series C and D, and to satisfy the reserve requirement for the Bonds and
provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of
property, demolition, relocation, public improvements and funding the Low and Mod Income Housing
Project. The bonds consist of $7,995,000 serial bonds which mature from 2007 to 2021 in amounts
ranging from $290,000 to $735,000 and term bonds of $4,330,000 which mature in 2028. Interest is
payable semiannually on April 1 and October 1 at interest rates ranging from 4.00% to 6.00%. The
bonds are subject to optional redemption on any interest payment date on or after October 1, 2012, at
various redemption prices. The bonds are payable solely from certain tax increment revenues of the
Agency and other funds held under the indenture. The balance outstanding at June 30, 2010 was
$11,200,000.
The annual debt service requirements for the 2006 Subordinate Tax Allocation Refunding Bonds, Series
B outstanding at June 30, 2010 were as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 440,000 $ 551,084 $ 991,084
2012 460,000 531,384 991,384
2013 480,000 510,234 990,234
2014 500,000 487,934 987,934
2015 525,000 464,096 989,096
2016-2020 3,030,000 1,899,161 4,929,161
2021-2025 3,885,000 1,022,503 4,907,503
2026-2028 1,880,000 126,788 2,006,788
Total $ 11,200,000 $ 5,593,184 $ 16,793,184
9-t81
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
A. Tax Allocation Bonds, Continued
2008 Tax Allocation Re nding Bonds
In July 2008, the Agency issued the 2008 Tax Allocation Refunding Bonds in the amount of $21,625,000
to refinance the Agency's outstanding Merged Redevelopment Project 2000 Tax Allocation-Bonds, to
satisfy the reserve requirement for the Bonds, to provide for the costs of issuing the Bonds, and to
provide funds to finance or refinance redevelopment activities. The bonds consist of $11,570,000 serial
bonds which mature from 2014 to 2028 in amounts ranging from $575,000 to $1,020,000 and term bonds
of $3,345,000 and $6,710,000 which mature in 2031 and 2036 respectively. Interest is payable
semiannually on March 1 and September 1 at interest rates ranging from 4.00% to 4.94%. The bonds are
subject to optional redemption on any interest payment date on or after September 1, 2019, at various
redemption prices. The bonds are payable solely from certain tax increment revenues of the Agency
and other funds held under the indenture. The balance outstanding at June 30, 2010 was $21,625,000.
The annual debt service requirements for the 2008 Tax Allocation Refunding Bonds outstanding at
June 30, 2010 were as follows:
Year Ending
June 30, Principal Interest Total
2011 $ - $ 963,636 $ 963,636
2012 - 963,636 963,636
2013 - 963,636 963,636
2014 - 963,636 963,636
2015 575,000 952,136 1,527,136
2016-2020 3,235,000 4,389,681 7,624,681
2021-2025 3,940,000 3,662,660 7,602,660
2026-2030 4,885,000 2,698,901 7,583,901
2031-2035 6,120,000 1,432,331 7,552,331
2036-2037 2,870,000 137,988 3,007,988
Total $ 21,625,000 $ 17,128,241 $ 38,753,241
9-~2
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
A. Tax Allocation Bonds, Continued
Pledged Revenues
The Agency has pledged tax revenues to the repayment of the Agency's debts through the final
maturity of the Bonds, or early retirement of the Bonds, whichever comes first.
Tax revenues consist of tax increment revenues allocated to the Agency's project areas pursuant to
Section 33670 of the Redevelopment Law excluding that portion of such tax increment revenues
required to be paid under Tax-Sharing Agreements unless the payment of such amounts has been
subordinated to payment of debt services on the Bonds. Tax increment received in 2009-2010 was
$13,884,638 and total debt service of all Tax Allocation Bonds paid was $2,975,381. The Bonds required
21% of net revenues. In future years, annual principal and interest payments on the Tax Allocation
Bonds are expected to require 25% of tax increment revenues.
B. Pension Obligation Bonds
Balance Debt
July 1, 2009 Issued Debt
Retired Balance
June 30, 2010 Due in
one year Due m more
than one year
POB 1994 Series $ 7,000,000 $ - $ (2,020,000) $ 4,950,000 $ 2,325,000 $ 2,655,000
Total $ 7,000,000 $ - $ (2,020,000) $ 4,980,000 $ 2,325,000 $ 2,655,000
1994 Pension Obligation Bonds
The Pension Obligation Bonds, Series 1994 were issued by the City to pay the obligations from the City
to the California Public Employees Retirement System for the City's unfunded pension liability. The
total issue is comprised of the following: (1) Current Interest Bonds with original amount due of
$7,415,000. These bonds mature in amounts ranging from $310,000 in 1996 to $1,820,000 in 2009.
Interest is payable semi-annually on February 1 and August 1, beginning February 1, 1996, at interest
rates ranging from 6.05% to 7.875% annually; (2) $7,000,000 Term Bonds are due August 1, 2011, with a
stated annual interest rate of 8.15% and are reflected in the annual debt service schedule below; (3)
Capital Appreciation Bonds, with original amount due of $2, 371,532 matured in 2006.
These bonds mature in the initial principal amounts ranging from $800,000 in 2002 to $1,095,000 in 2005
and $480,036 in 2006. The effective annual yield on these bonds ranges from 7.690% to 8.34%. The
bonds are not limited as to payment to any special source of funds of the City. The accredited value of
the Pension Obligation Bonds at June 30, 2010 was $4,980,000.
The annual debt service requirements for the Pension Obligation Bonds outstanding at June 30, 2010 are
as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 2,325,000 $ 310,172 $ 2,635,172
2012 2,655,000 107,559 2,762,859
Total $ 4,980,000 $ 415,031 $ 5,398,031
9-~i3
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
C. Certificates of Participation
Balmtce Balance Due within Due in more
July 1, 2009 Additions Deletions June 30, 2010 one yeaz than one year
2000 COP, Series A $ 16,710,000 $ - $ (16,710,000) $ - $ - $ -
2002COP Police Fadlity 55,420,000 - (1,290,000) 54,130,000 1,340,000 52'N0,000
2003 Refunding COP 4,145,000 - (940,000) 3,205,000 965,000 2240,000
2701 COP Gvic Ctr Ph 1 34,865,000 - (830,000) 34,031,000 855,000 33,180,000
2006 COP Gvic Ctr Ph 2 19,440,000 (465,000) 18,975,000 480,000 1$495,000
2010 Refunding COP Coop Yazd 29,355,000 29,355,000 - 29,355,000
Total $ 130,580,000 $ 29,355,000 $ (37,235,000) $ 139,700p00 $ 3b40,000 $ 136,060,000
2000 COP, Series A
In October 2000, the Chula Vista Public Financing Authority (Financing Authority) issued $25,255,000 in
2000 Certificates of Participation, Series A, to provide funds to improve the City's S00 Megahertz
emergency communications system, improve the City's Corporation Yard, finance a reserve account for
the certificates, and pay the costs of issuance incurred in connection with the execution and delivery of
the certificates. The source of the repayments of the certificates is the lease payments to be made by the
City to the Authority. The certificates mature in amounts ranging from $855,000 in 2001 to $1,790,000 in
2020. Interest is payable semi-annually on March 1 and September 1, at interest rates ranging from
4.25% to 5.25%. The certificates maturing after September 1, 2010, are subject to redemption at
premiums ranging from zero to 2%. The outstanding balance at June 30, 2010 was $0. This was
refunded by 2010 Certificate of Participation.
2002 COP
In June 2002, the Chula Vista Public Financing Authority issued $60,145,000 in 2002 Certificates of
Participation to provide funds to construct the City's Police Headquarters, finance the reserve account of
the certificates, to capitalize interest during construction and to pay the cost of issuance of the
certificates. The source of repayment of the certificates is the lease payments to be made by the City to
the Authority. Interest is payable semiannually on February 1 and August 1 of each year commencing
February 1, 2003. The certificates mature in 2032 and principal is payable on August 1 each year
commencing August 1, 2005. As of June 30, 2010 the outstanding balance is $54,130,000.
9-~4
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
-6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
2002 COP, Continued
The annual debt service requirements for the 2002 Certificates of Participation outstanding at June 30,
2010 were as follows: -
Year Ending
June 30, Principal Interest Total
2011 $ 1,340,000 $ 2,568,146 $ 3,908,146
2012 1,400,000 2,513,346 3,913,346
2013 1,460,b00 2,456,146 3,916,146
2014 1,520,000 2,396,546 3,916,546
2015 1,585,000 2,332,465 3,917,465
2016-2020 9,110,000 10,508,248 19,618,245
2021-2025 11,640,000 8,031,438 19,671,438
2026-2030 15,030,000 4,716,750 19,746,750
2031-2033 11,045,000 847,125 11,892,125
Total $ 54,130,000 $ 36,370,210 $ 90,500,210
2003 Refunding COP
In May 2003, the Chula Vista Public Financing Authority (Authority) issued its 2003 Refunding
Certificates of Participation to defease the 1993 Certificates, reimburse the City far amounts it has
advanced to prepay the equipment lease, finance a reserve account and pay for the cost of issuance of
the Certificates. The Certificates are to be repaid from lease payments made by the City to the Authority
for leasing certain property. Interest is payable semiannually on March 1 and September 1 of each year
commencing September 1, 2003. The certificates mature in 2013 and principal is payable on September 1
each year commencing September 1, 2003. As of June 30, 2010 the outstanding balance is $3,205,000.
The annual debt service requirements for the 2003 Refunding Certificates of Participation outstanding at
June 30, 2010 were as follows:
Year Ending
June 30, Principal Interest
2011 $ 965,000 $ 84,880
2012 990,000 56,273
2013 1,030,000 24,438
2014 220,000 3,850
Total $ 3,205,000 $ 169,441
Total
$ 1,049,880
1,046,273
1,054,438
223,850
$ 3,374,441
9-~5
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
2004 Civic Center Project Phase I COP, Continued
In September 2004, the Chula Vista Public Financing Authority (Authority) issued $37,240,000 in 2004
_ Certificates of Participation to provide funding for the fist phase of the reconstruction, renovation, and
equipping of the City's Civic Center Complex. Proceeds will also be used to finance the reserve account
of the certificates, to capitalize interest during construction and to pay the cost of issuance of the
certificates. The source of repayment of the certificates is the lease payments to be made by the City to
the Authority. Interest is payable semiannually on March 1 and September 1 of each year commencing
March 1, 2006. The certificates mature in 2034 and principal is payable on September 1 each year
commencing September 1, 2006. As of June 30, 2010 the outstanding balance is $34,035,000.
The annual debt service requirements for the 2004 Certificates of Participation Civic Center Project Phase
I outstanding at June 30, 2010 were as follows:
Year Ending
June 30, Principal
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2034
Total
2006 Civic Center Project Phase II COP
855,000
885,000
915,000
950,000
985,000
5,555,000
6,840,000
8,565,000
Interest
1,536,218
1,507,361
1,476,386
1,442,074
1,406,449
6,415,671
5,124,209
3,400,775
8,485,000 1,086,500
$ 34,035,OW $ 23,395,643
Total
$ 2,391,218
2,392,361
2,391,386
2,392,074
2,391,449
11,970,671
11,964,209
11,965,775
9,571,500
$ 57,430,643
In March 2006, the Chula Vista Public Financing Authority (Authority) issued $20,325,000 in 2006
Certificates of Participation to provide funds for the construction and equipping of certain
improvements to the Civic Center Complex of the City of Chula Vista and other existing City facilities,
fund capitalized interest, fund a reserve fund, and pay the cost s incurred in connection with the
execution and delivery of the Certificates. The source of repayment of the certificates is the lease
payments to be made by the City to the Authority. Interest is payable semiannually on March 1 and
September 1 of each year commencing September 1, 2006. The certificates mature in 2036 and principal
is payable on March 1 each year commencing March 1, 2008. As of June 30, 2010 the outstanding balance
is $18,975,000.
9-~6
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
2006 Civic Center Protect Phase II COP, Continued
The. annual debt service requirements for the 2006 Certificates of Participation Civic Center Project Phase
II outstanding at June 30, 2010 were as follows:
Year Ending
June 30, Principal
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2035
2036
Total
2010 Re nding COP
480,000
495,000
510,000
530,000
550,000
3,070,000
3,740,000
3,900,000
4,640,000
Interest
791,389
775,069
758,239
740,389
721,309
3,279,856
2,611,076
1,788,224
882,063
Total
$ 1,271,389
1,270,069
1,268,239
1,270,389
1,271,309
6,349,856
6,351,076
5,688,224
5,522,063
1,060,000 47,700 1,107,700
$ 18,975,000 $ 12,395,314 $ 31,370,314
In February 2010, the Chula Vista Public Financing Authority (Authority) issued $29,355,000 in 2010
Certificates of Participation to provide funds for the construction, reconstruction, modernization and
equipping of Phase 3 of the Civic Center Complex of the City of Chula Vista, to refinance the City's
outstanding Certificates of Participation Series A of 2000 (2000 Financing Project), fund capitalized
interest, fund a reserve fund, and pay the cost s incurred in connection with the execution and delivery
of the Certificates. The source of repayment of the certificates is the lease payments to be made by the
City to the Authority. Interest is payable semiannually on March 1 and September 1 of each year
commencing September 1, 2010. The certificates mature in 2033 and principal is payable on March 1
each year commencing March Ol, 2014. As of June 30, 2010 the outstanding balance is $ 29,355,000.
The annual debt service requirements for the 2010 Certificates of Participation Civic Center Project Phase
II outstanding at June 30, 2010 were as follows:
June 30, Princpal Interest Total _
2011 $ - $ 1,505,930 $ 1,505,930
2012 - 1,477,206 1,477,206
2013 - 1,477,206 1,477,206
2014 1,015,000 1,477,206 2,492,206
2015 1,055,000 1,436,606 2,491,606
2016-2020 5,920,000 6,536,406 12,456,406
2021-2025 7,510,000 4,943,531 12,453,531
2026-2030 9,655,000 2,797,394 12,452,394
2031-2033 4,200,000 392,975 4,592,975
Total $ 29,355,000 $ 22,044,461 $ 51,399,461
9-~7
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
C. Certificates of Participation, Continued
De{easance o~Certificate of Participation
In February 2010, the City refunded the 2000 Certificate of Participation (COP) in the amount of
_$16,710,000 with the $29,355,000 2010 Certificate of Participation. The net proceeds of $28,429,128 were
used to pay off the 2000 Certificate of Participation, provide funds for the construction, reconstruction,
modernization and equipping of Phase 3 of the Civic Center Complex of the City of Chula Vista,
reimbursed the Public Facilities Development Impact Fee funds, fund capitalized interest, fund a
reserve fund, and pay the costs incurred in connection with the execution and delivery of the
Certificates. At June 30, 2010, the outstandu1g balance of the 2000 Certificate of Participation was $0.
The aggregate difference in debt service between the 2000 COP and the 2010 COP is $7,602,193. The
economic loss on this transaction is $850,436 at present value using the arbitrage yield. The economic
loss is due to the term being extended from 10 to 21 years.
D. ERAF Loan
Balance Debt
July 1, 2009 Issued Debt
Retired Balance
June 30, 2010 Due in
one year Due in more
than one year
2005 ERAF $ 505,000 $ - $ (75,000) $ 430,000 $ 80,000 $ 350,000
2006 ERAF 710,000 - (85,000) 625,000 90,000 535,000
Total $ 1,215,000 $ - $ (160,000) $ 1,055,000 $ 170,000 $ 885,000
2005 ERAF
In May 2005, the Agency participated in a $765,000 Loan Agreement with the California Statewide
Communities Development Authority to finance their 2005 share of ERAF Payments to the County
Auditor. The annual debt service payments are:
Year Ending
June 30, Principal Interest Total
2011 $ 80,000 $ 22,118 $ 102,118
2012 80,000 18,354 95,354
- 2013 85,000 14,526 99,526
2014 90,000 10,356 100,356
2015 95,000 5,880 100,580
Total $ 430,000 $ 71,234 $ 501,234
9-~d8
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
D. ERAF Loan, Continued
2006 ERAF
In May 2006, the Agency participated in a $930,000 Loan Agreement with the California Statewide
Communities Development Authority to finance their 2006 share of ERAF Payments to the County
Auditor. The annual debt service payments are:
Year Ending
June 30, Principal Interest Total
2011 $ 90,000 $ 35,996 $ 125,996
2012 95,000 31,052 126,052
2013 100,000 25,784 125,784
2014 105,000 20,188 125,188
2015 115,000 14,282 129,282
2016 120,000 7,792 127,792
Total $ 625,000 $ 135,094 $ 760,094
E. Section 108 Loan
Balance Debt Debt Balance Due in Due in more
July 1, 2009 Issssed Retired June 30, 2010 one year than one year
Section 1O81oan $ 9,500,000 $ - $ (287,000) $ 9,213,000 $ 302,000 $ 8,911,000
Total $ 9,500,000 $ - $ (287,000) $ 9,213,000 $ 302,000 $ 8,911,000
In June 2008, the City entered into a Contract for Loan Guarantee Assistance with the US Department of
Housing and Urban Development (HUD) as part of the Section 108 Loan Program in the amount of
$9,500,000. The Section 108 Loan is an "advance" of future CDBG entitlement funds and, as such, is
repaid with a portion of the City's annual entitlement. Proceeds of the loan will be used to fund
multiple capital improvement projects. Debt service payments will be made with future CDBG
entitlements for the next 20 years, interest payment beginning with fiscal year 2008/2009. As of June 30,
2010, the outstanding balance is $9,213,000. The annual debt service payments are as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 302,000 $ 439,015 $ 741,015
2012 317,000 428,866 745,866
2013 332,000 417,073 749,073
2014 349,000 403,752 752,752
2015 367,000 389,175 756,175
2016-2020 2,128,000 1,678,771 3,806,771
2021-2025 2,716,000 1,059,660 3,805,660
2026-2029 2,702,000 299,818 3,001,818
Total $ 9,213,000 $ 5,146,130 $ 14,359,130
9~9
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6, LONG-TERM DEBT, Continued
F. Notes Payable
Balance Debt Debt Balance Due in Due in more
July 1, 2009 Lssued Retired June 30, 2010 one year than one year
Parking Structure Note $ 195,139 $ - $ (33,157) $ 161,982 $ 37,513 $ 124,469
California Energy Comntison Loan 665,884 207,372 - 873,256 - 873,256
Total $ 861,023 $ 207,372 $ (33,15'1) $ 1,035,235 $ 37,513 $ 997,725
Parking Structure Note
In January 1994, the City entered into a note payable with a private party in order to purchase certain
land and improvements for the ultimate purpose of constructing athree-level parking structure. The
note calls for 240 monthly payments of principal and interest, commencing in April 1994 in the initial
amount of $2,548 and increasing 3% percent annually. The annual interest rate is 8.29%. As of June 30,
2010, the outstanding balance is $161,982.
The annual debt service payments are as follows:
Yeaz Ending
June 30, Principal Interest Total
2011 $ 37,513 $ 12,043 $ 49,556
2012 42,289 8,753 51,042
2013 47,523 5,051 52,574
2014 34,657 1,086 35,743
Total $ 161,982 $ 26,933 $ 188,915
Cali ornia Energetl Commission Loan
On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the City's
participation in the California Energy Commission (CEC) and the SDG&E On-Bill Financing program.
The loans would bridge the financial gap between energy conservation project capital costs and the
available rebates for energy conservation equipment. As of June 30, 2010, the outstanding balance is
$873,256. The debt service payment will be computed after the projects have been completed.
G. Capital Leases
July 1, 2009 Issued Retired June 30, 2010 one year than one yeaz
SD County Regional Comm. System $ 1,257,685 $ - $ (224,675) $ 1,033,010 $ 237,369 $ 795,641
Medical Resuscitation Equipment 601,910 - (146,530) 455,380 153,717 301,663
Total $ 1,859,595 $ - $ (371,205) $ 1,488,390 $ 391,086 $ 1,097,304
9-bDO
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERNS-DEBT, Continued
G. Capital Leases, Continued
SD Countt~ReQional Communication S sit tem
The City has participated in the San Diego County Regional Communications System (RCS). The City
financed its share of the RCS network infrastructure over 14 years in the amount of $2,809,405. The
agreement with the County provided the City with full partnership in the RCS. AS of June 30, 2010, the
outstanding balance is $1,033,010.
The future minimum lease obligation and the net present value of these minimum lease payments as of
June 30, 2010, were as follows:
Year Ending
June 30, Principal Interest Total
2011 S 237,369 $ 58,365 $ 295,734
2012 250,780 44,954 295,734
2013 264,948 30,785 295,733
2014 279,913 15,815 295,728
Total $ 1,033,010 $ 149,919 $ 1,182,929
Medical Resuscitation Equipment
On April 16, 2008 the City entered into a five year lease purchase agreement for the acquisition of
medical resuscitation equipment manufactured by Zoll Medical Corporation for use by the Fire
Department financed by Kansas State Bank of Manhattan in the amount of $764,224. The medical
equipment replaced the existing equipment that is beyond its useful performance life. This lease
agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the
present value of the future minimum lease payments at the inception date.
The assets acquired through capital lease are as follows:
Assets:
Machinery and equipment $ 764,224
Less:
Accumulated depreciation (127,370)
Total $ 636,854
The future minimum lease obligation and the net present value of these minimum lease payments as of
June 30, 2010, were as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 153,717 $ 18,499 $ 172,216
2012 161,257 10,959 172, 216
2013 140,406 3,106 143,512
Total $ 455,380 $ 32,564 $ 487,944
9-b411
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT, Continued
H. Special Assessment Debt-Non-City Obligations
Bonds issued to finance public improvements projects in certain assessment districts are liabilities of the
property owners and are secured by liens against the assessed property. The City acts as an agent for
collection of principal and interest payments by the property owners and remittance of such monies to
the bondholders.
The City has no obligation or duty to pay any delinquency out of any available funds of the City.
Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds.
Therefore, none of the following obligations are included in the accompanying basic financial
statements.
At June 30, 2010, the total special assessment debt outstanding was as follows:
CFD 06-1A Eastlake Woods, Vista, Land Swap
CFD 06-1B Eastlake Woods, Vista, Land Swap
CFD 01-2 McMillin Otay Valley Ranch Village 6
CFD OS-I Otay Ranch Village
CFD 07-I Otay Ranch VBlage II
CFD 12-I McMillin Otay Ranch Village 7
CFD 2001-1B San Miguel Ranch 2005 Improvement
CFD 13-I McMillin Otay Ranch Village 7
CFD 07-I McMillin Otay Ranch Village I
2005 Revenue Refunding Bonds
AD 94-I Eastlake Greens Phase II
RAD 2001-I Refunding Revenue Bonds Residential
RAD 2001-2 Refunding Revenue Bonds Commercial
Industrial Development Revenue Bonds, 1992 Series A-D
Industrial Development Revenue Bonds, 1996 Series A-B
Industrial Development Revenue Bonds, 1997 Series A
Industrial Development Revenue Bonds, 2004 Series A-F
Industrial Development Revenue Bonds, 2006 Series A
Total
Original Outstanding
Amount June 30, 2010
$ 39,000,000 $ 35,225,000
7,880,000 7,240,000
10,250,000 9,225,000
21,655,000 19,715,000
28,050,000 24,780,000
22,565,000 20,955,000
12,230,000 11,625,000
16,620,000 14,460,000
16,950,000 15,490,000
93,930,000 83,550,000
7,464,474 3,295,000
20,445,000 13,875,000
9,705,000 2,270,000
250,000,000 150,000,000
98,900,000 98,900,000
25,000,000 25,000,000
251,265,000 251,265,000
161,240,000 161,240,000
$ 1,093,149,474 $ 945,110,000
9-1302
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. LONG-TERM DEBT; Continued-
I. Multi-Family Housing Bonds -Non -City Obligations
Bonds issued to finance public improvement and/or affordable multifamily housing projects are
liabilities of the developers and are secured by liens against the assessed property. The City has no
obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith,
credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore, none of the
following obligations are included in the accompanying basic financial statements.
As of June 30, 2010, the total multifamily housing bonds outstanding were as follows:
1998 A Gateway Town Center
1998 B Gateway Town Center
2000 A Pear Tree Manor Project
1999 A Villa Serena Project
1999 B Villa Serena Project
2007 A Oxford Terrace Apartments
2007 B Oxford Terrace Apartments
2006 A Teresina Apartment Project
2007 C The Landings Apartment
Total
J. Tax and Revenue Anticipation Notes
Original Outstanding
Amount June 30, 2010
$ 36,020,000 $ -
4,625,000 -
5,779,000 4,864,000
5,566,500 5,470,000
786,000 -
2,276,000 2,031,000
2,363,000 2,363,000
37,940,000 37,940,000
16,670,000 5,956,071
$ 112,025,500 $ 58,624,071
The City did not issue Tax and Revenue Anticipation Notes in FY10.
K. Debt Compliance
At June 30, 2010, City management believes that the City has complied with all requirements of its
various debt agreements.
7. UNEARNED/DEFERRED REVENUE
A. Government-Wide Financial Statements
At June 30, 2010, unearned revenue was reported as follows:
Total
Public Facilities Development Impact fee Prepayment $ 1,203,496
Grants 5,882,572
Totaluneamedrevenue $ 7,086,068
9-lifl3
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. UNEARNED/DEFERRED REVENUE, Continued
B. Fund Financial Statements
At June 30, 2010, deferred revenue was reported as follows:
Total
-Interest Receivable on:
Advances to Other funds
Loans Receivable:
South Bay Community Services
South Bay Community Villas, L.P.
St. Regis Park
Los Vecinos (Wakeland Housing & Development)
Seniors on Broadway (MAAC Project)
Rancho Vista Housing (Chelsea Invest Corp.)
Alpha III Development (Main Plaza)
The Landings (Chelsea Invest. Corp)
Long-term receivable
Public Facilifies DIF
Grants
Total
S. COMPENSATED ABSENCES
Government-Wide Financial Statements
$ 13,143,999
3,510,084
4,400,000
1,387,152
5,650,000
3,511,194
1,500,000
1,800,000
1,100,000
3,402,168
1,203,496
5,882,572
$ 46,520,665
Summary of changes in governmental activities compensated absences for the year ended June 30, 2010 was
as follows:
Balance Balance Due ht Due in more
July 1, 2009 Additions Deletions June 30, 2010 one year than one year
Compensatedabsences $ 6,262,953 $ 4,659,054 $ (4,196,070) $ 6,725,937 $ 4,000,000 $ 2,725,937
Total $ 6,262,953 $ 4,659,054 $ (4,196,070) $ 6,725,937 $ 4p00,000 $ 2,725,937
The City's liability for vested and unpaid compensated absences (accrued vacation) has been accrued and
amounts to $6,725,937 at June 30, 2010. For the governmental activities claims and judgments and
compensated absences are generally liquidated by the general fund. In business-type funds, the liabilities
are reported in the fund as the benefits vest and are earned.
Compensated absences at June 30, 2010 were obligations of the following funds:
Governmental Funds
Fleet Matugement
Total
$ 6,661,969
63,968
$ 6,725,937
9-~fl4
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
9. OTHER REQUIRED FUND DISCLOSURES
A. Deficit Fund Balances
At June 30, 2010, the following funds had deficit fund equity:
Debt Service Funds:
Redwelopment Agency $ (29,842,283) __
City Debt Service $ (26,~h38,435)
The Redevelopment Agency and City Debt Service funds have a deficit fund balance due to the funds
booking their long term advances within each respective fund. The City expects to repay the advances
via property tax increment and transfers from other funds for the Redevelopment Agency and City
Debt Service funds, respectively.
10. SELF-INSURANCE ACCRUED LIABILITIES
The City is self-insured for the first $500,000 per occurrence for its general liability losses including personal
injury, property damage, errors and omissions, automobile liability and employment practices liability. For
those losses between $500,000 and $2,000,000 per occurrence the City pools its liabilities through its
membership in the San Diego Pooled Insurance Program Authority (SANDPIPA). Insurance for losses in
excess of the $2,000,000 up to $45,000,000 is purchased on a group basis by the member cities.
SANDPIPA is a joint powers authority comprised of twelve San Diego County cities. The Board of
Directors consists of one staff representative (and an alternate) from each of the member cities as designated
by the city's governing body. Each member city has equal representation on the Board of Directors. The
Board of Directors is liable for all actions of SANDPIPA.
The SANDPIPA Board of Directors establishes an Executive Committee that is responsible for the
administration and operation of the risk management programs of SANDPIPA, subject to the control of the
Board. The Executive Committee consists of the Board President, Vice-President, Treasurer and a member
at-large nominated by the Board President and approved by a vote of the Board. The Executive Committee
is responsible for the oversight of all SANDPIPA operations, including preparation and submittal of the
Pool's annual budget to the Board for its review and approval.
Annual pool premiums and assessments are approved by the Board of Directors and are adjusted annually
based on the member city's incurred losses; the member's share of such losses and other expenses as a
proportion of all member's losses; historical contributions to reserves (including reserves for IBNR losses);
the cost to purchase excess liability insurance and other coverage and a proportionate share of
administrative expenses.
9-115
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
10. SELF-INSURANCE ACCRUED LIABILITIES, Continued
The City is self-insured for the first $1,000,000 per occurrence for workers' compensation liabilities. Excess
workers' compensation coverage is obtained through participation in the CSAC Excess Insurance
Authority's Excess Workers' Compensation Program. As of June 30, 2010, there are 160 member entities
participating in the program that offers per occurrence coverage up to $5,000,000 through pooled resources
and from $5,000,000 to statutory limits via group purchased excess insurance policies.
Only the probable amounts of loss as estimated by the City's Risk Manager and Attorney, including an
estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic
financial statements. There were no reductions in insurance from the prior year and there were no
insurance settlements that exceeded coverage in each of the past three years.
The aggregate change in the balance of claims payable as recorded in the Governmental Activities were as
follows:
Beginning of Claims and Balance at
Fiscal Year Changes in Claim Fiscal Year
Liability Estimates Payments End
2007-2008 $ 13,879,589 $ 5,394,212 $ (3,605,920) $ 15,667,881
2008-2009 15,667,881 6,298,675 (4,096,607) 17,869,949
2009-2010 17,869,949 4,554,348 (3,622,693) 18,801,604
The liabilities for claims and judgments typically will be liquidated from the General Fund.
11. PENSION PLANS
A. California Public Employees' Retirement Plan
Plan Description
The City contributes to the California Public Employees' Retirement System (PERS), an agent multiple-
employer public employee defined benefit pension plan. PERS provides retirement and disability
benefits, azutual cost-of-living adjustments, and death benefits to plan members and beneficiaries. PERS
acts as a common investment and administrative agent for participating public entities within the State
of California. Benefit provisions and all other requirements are established by State statute and City
ordinance. Copies of PERS' annual financial report may be obtained from their Executive Office located
at 400 P Street, Sacramento, California 95814.
Readers of this document are advised to refer directly to the full disclosure of actuarial and funding
practices of the multi-employer Ca1PERS system, which this agency does not control. Ca1PERS may
employ actuarial techniques such as extended smoothing and amortization periods that would result in
future increases in required employer contributions which are not reflected in these financial
statements, particularly in the event of any future changes in govemmental financial reporting
standards and system-wide funding practices. Further information on its financial practices should be
requested from Ca1PERS.
9-i%p6
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
11. PENSION PLANS, Continued-
A. California Public Employees' Retirement Plan, Continued
Funding Policu
Active plan members are required by State statute to contribute 8% for miscellaneous and 9% for safety
employees of their annual covered salary. The City employer makes the contributions required of City
employees on their behalf and for their account, which amounted to $6,705,758 for the year ended
June 30, 2010. The City employer is required to contribute at an actuarial determined rate of 18.152% of
annual covered payroll for miscellaneous employees and 23.228% of annual covered payroll for safety
employees for the fiscal year ended June 30, 2010.
Annual Pension Cost
For 2009-2010, the City's annual pension cost of $17,865,618 for PERS was equal to the City's required
and actual contributions. The required contribution was determined as part of the June 30, 2007,
actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions
included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary
increases range from 3.25% to 14.45% for miscellaneous employees and 3.25% to 13.19% for safety
employees depending on age, service, and type of employment, and (c) 3.25% per year cost-of-living
adjustments. Both (a) and (b) included an inflation component of 3%. The actuarial value of PERS
assets was determined using techniques that smooth the effects of short-term volatility in the market
value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus)
for both miscellaneous and safety employees are being amortized as a level percentage of projected
payrolls over a closed 20-year period for prior and current service unfunded liability.
THREE-YEAR TREND INFORMATION FOR PERS
Miscellaneous Safety
Employees Employees Total
Annual Annual Annual Percentage of
Pension Co st Pension Cost Pension Cost APC Net Pension
Fiscal Year (AP(~ (APC) (APC) Contributed Obligation
6/30/08 $ 10,790,994 $ 8,321,982 $ 19,112,976 100% $ -
6/30/09 9,822,760 9,115,682 15,938,442 100% -
6/30/10 9,082,303 5,783,315 17,865,618 100% -
The City's changes in net pension asset for the year ended June 30, 2010, were as follows:
Annual required contribution
Interest on net pension asset
Adjustment to the annual required contribution
Annual pensioncost
Contribution made
Decrease in net pension asset
Net pension asset, beginning of the year
Net pension asset, end of yeaz
2010 2009 2008
$ (1s,792,292) $ (17,153,120) $ (17,573,973)
594,803 733,165 852,438
(2,668,129) (2,518,487) (2,391,442)
(17,865,618) (18,938,442) (19,112,977)
15, 792,292 17,153,120 17,573,973
(2,073,326) (1,785,322) (1,539,004)
7,674,873 9,460,195 10,999,199
$ 5,601,547 $ 7,674,873 $ 9,460,195
9-1397
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
11. PENSION PLANS, Continued -
A. California Public Employees' Retirement Plan, Continued
Most Recent Actuarial Study - Schedule o Funding Progress
Overfunded
(Unfunded) Actuarial
Entry Age Overfunded Liability as
Actuarial Actuarial Actuaz-ial Actuarial Percentage of
Valuation Asset Accrued Accrued Funded Covered Coveted
Date Value Liability Liability Ratio Payroll PayroIl
Miscellaneous:
6/30/2009 $ 258,234,202 $ 337,496,425 $ ('A,2b2,223) 76.51% $ 45,211,544 (1'15.31)%
Safety:
6/30/2009 $ 240,935,156 $ 279,516,735 $ (38,581,579) 86.20% $ 34,149,134 (1]2.98)%
B. Defined Contribution Pension Plan
The City provides pension plan benefits for all of its part-time employees through a defined
contribution plan (Public Agency Retirement Plan). In a defined contribution plan, benefits depend
solely on amounts contributed to the plan plus investment earnings. The plan is administered by Phase
II Systems. All part-time employees are eligible to participate from the date of employment. Federal
legislation requires contributions of at least 7.5% to a retirement plan, and City Council resolved to
match the employees' contributions of 3.75%. The City's contributions for each employee (and interest
earned by the accounts) are fully vested immediately.
For the year ended June 30, 2010, the City's total payroll and covered payroll was $1,477,168. The City
made employer contributions of $55,394 (3.75% of current covered payroll), and employees contributed
$55,394 (3.75% of current covered payroll).
12. OTHER POSTEMPLOYMENT BENEFITS
Plan Description
The City provides a Retiree Healthcare Plan, a single employer defined benefit plan, which allows retirees
to purchase healthcare coverage under the City's medical plan. Retirees pay 100% of the premiums.
Retirees not eligible for Medicare pay the same healthcare premiums as active employees, even though
retiree's healthcare costs are greater than that of active employees. This results in an implied subsidy of
retiree's healthcare costs by the City. The postemployment benefit is asingle-employer plan. The plan has
not been audited and therefore, there is no audited GAAP-basis postemployment benefit plan report
available.
9-1;08
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
12. OTHER POSTEMPLOYMENT BENEFITS, Continued
Plan Description, Conrinued
On April 22, 2008 the City CouncIl approved a medical incentive program for early retirement, the City
offered to pay the employees single premium until December 31, 2009 if the employee retired between May
5, 2008 to June 5, 2008. On December 16, 2008, the City Council approved a third resolution to pay the
employees single premium until December 31, 2010 and December 31, 2009 if the employee.retired between
January 1, 2009 to March 27, 2009 and March 28, 2009 to June 26, 2009 respectively.
Eli 'bili
Employees are eligible for retiree health benefits if they refired from the City on or after age 50 (unless
disabled) and are eligible for PERS pension. The benefits are available only to employees who retired from
the City. Membership of the plan consisted of the following at June 30, 2010:
Police Fire Miscellaneous 'Total
Eligible active employee 227 172 616 965
Enrolled eligible retirees 29 20 154 203
The above does not reflect current retirees not enrolled in the healthcare plan that are eligible to enroll in
the plan at a later date.
Funding PolicU
The City offers an implied subsidy benefit paid from the City's general fund. The City's contribution is
based on pay as-you-go. The retirees pay 100% of their individual premium except for the retirees who
retired under the incentive plan. The City is contributing amounts between $379 and $676 in premiums on
behalf of the employees who retired under the incentive plan.
Annual Other Postem~loument Bene~tts (OPEB) Cost and Net OPEB Obligations
The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual
required contribution of the employer (ARC), an amount actuarially determined in accordance with the
parameters of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis,
is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) not to exceed thirty years.
The following table shows the components of the City's annual OPEB cost for the year, the amount actually
contributed to the plan, and changes in the City's net OPEB obligation:
Beginning
Balance Annual
Net OPEB Required Actual
Obligation Contributions Contributions
2007-2005 $ - $ 1,363,000
2008-2009 638,752 1,407,000
2009-2010 1,753,808 1,423,000
Accmed
Interest
(724,248) $ -
(320,685) 28,744
(702,598) 74,790
Ending
Balance
Net OPEB
Obligation
$ 638,752
1,753,808
2,549,000
9-~~19
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
12. OTHER POSTEMPLOYMENT BENEFITS, Continued
Annual Other Postem~loumenf Benefits (OPEB) Cost and Net OPEB Obligations, Continued
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB
obligation for 2008, 2009 and 2010 were as follows:
- Percerdage of Increase in
Annual AnnuaIOPEB NetOPEB NetOPEB
Fiscal Year OPEB Cost Cost Contributed Obligation Obligation
6/30/08 $ 1,363,000 53% $ 633,752 $ 638,752
6/30/09 1,435,744 22% 1,115,056 1,753,808
6/30/10 1,498,000 47% 7,192 2549,000
Funding Status and Progress
As of June 30, 2009, the most recent actuarial valuation date, the plan was not funded in its initial year of
implementation. The actuarial accrued liability for benefits was $11,885,000, and the actuarial value of
assets was $0, resulting in an unfunded actuarial liability (UAAL) of $11,885,000 and a funded ratio
(actuarial value of assets as a percentage of the actuarial liability) of 0 percent.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about the future employment, mortality and the healthcare cost trend. Amounts determined
regarding the funded status of the plan and the annual required contributions of the employer are subject to
continual revision as actual results are compared with past expectations and new estimates are made about
the future. The schedule of funding progress, presented as required supplementary information following
the notes to financial statements, presents multi-year trend information about whether the actuarial value of
plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for the benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purpose are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefits costs between employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are designed
to reduce the effects of short-term volatility in actuarial liabilities and the actuarial assets, consistent with
the long-term respective of the calculations.
The actuarial cost method used for determining the benefit obligation is the Entry Age Normal Cost
Method. The actuarial assumptions included a 4.25% discount rate, the inflation rate for HMO's starts at
9.7% (the increase in 2010 premiums over 2009) and grades down to 4.5% (2017 premiums over 2016) and
remains at 4.5% into the future. This assumption means healthcare is assumed to increase, on the average,
7.1% for HMO's and 7.5% for PPO's a year for the next 8 years after 2009. The general inflation assumption
rate is 3% and is assumed that healthcare will level off at 1.5% over general inflation. The UAAL is being
amortized as a level percentage of projected payroll over 30 years.
9-'~~ 0
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
12. OTHER POSTEMPLOYMENT BENEFITS, Continued
Most Recent Actuarial StudU - Schedule o Funding Progress
Actuarial Actuarial
Valuation Asset
Date Value
6/30/2009 $
(Unhanded)
Entry Age Overfunded
Actuarial Actuarial
Accrued Accrued
Liability Liability
- $ 11,585,000 $ (11,SS5,000)
13. POLLUTION REMEDIATION OBLIGATIONS
Overfunded
(Unfunded)
Actuarial
Liability as
Percentage of
Funded Covered Covered
Ratio Payroll Payroll
0.00% $ 69,OS7,000 (17.20)%
In accordance with GASB Statement No. 49, Accounting and Financial Reporting for Pollution Remediation
Obligations, the City is required to estimate the components of expected pollution remediation outlays and
determine whether outlays for those components should be accrued as a liabilities or, if appropriate,
capitalized when goods and services are acquired if one of the following five specified obligating events
occurs:
• The City is compelled to take pollution remediation action because of an imminent endangerment;
• The City violates a pollution prevention-related permit or license;
• The City is named, or evidence indicates that it wIll be named, by a regulator as a responsible party
or potentially responsible party for remediation, or as a government responsible for sharing costs;
• The City is named, or evidence indicates that it will be named, in a lawsuit to compel participation
in pollution remediation;
• The City commences or legally obligates itself to commence pollution remediation.
At June 30, 2010, the City identified the following sites which met one of the above obligating events:
Ota, Vit alleu
The City is preparing a remedial action plan for the County of San Diego for approval. The estimate
clean-up cost for two foot cap of clean fill material and monitoring is approximately $500,000.
Corp Yard
The estimate installation costs of groundwater monitoring wells and monitoring activity is
approximately $150,000. The intent is to monitor for natural attenuation, however, the City believes
that after another round of monitoring, the site will be closed.
The City purchases pollution and remediation legal liability insurance to cover pollution legal liability,
remediation legal liability, legal defense expense and contingent transportation coverage in the amount of
$10,000,000 per occurrence up to $50,000,000 with aself-insured retention amount of $100,000 per
occurrence. At June 30, 2010, the City recorded polluiion remediation obligations in the amount of $650,000
on the Government-Wide Statement of Net Assets and allocated the total amount to General Government
on the Government-Wide Statement of Activities and Changes in Net Assets.- Management expects these
amounts to be recovered by insurance.
9-~~ 1
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
14. COMMITMENTS AND CONTINGENCIES
The City is presently involved in certain matters of litigation that have arisen in the normal course of
conducting City business. City managemenYbelieves, based upon consultation with the City Attorney, that
these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City.
Additionally, City management believes that the City's insurance programs are sufficient to cover any
potential losses should an unfavorable outcome materialize.
The City participates in a number of federally assisted grant programs, including those from the U.S.
Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Treasury,
U.S. Department of Transportation, and the U.S. Department of Education. Receipts from these grant
programs are subject to audit to determine if the monies were expended in accordance with appropriate
statues, grant terms and regulations. The City believes no significant liabilities will result.
The General Fund has loaned a cumulative amount of $807,264 to the Agency for unreimbursed services
rendered by City staff. It is anticipated that the Agency will repay this loan from tax increment revenues.
Currently, tax increment revenues are used to pay for related debt service expenditures and possible future
debt issuance. As a result, the Agency is uncertain if the amount will be repaid to the City's General Fund.
Accordingly, this contingent payable has not been reported in accompanying basic financial statements. The
Agency will record the contingent payable when payment is assured.
15. PROPOSITION lA BORROWING BY THE STATE OF CALIFORNIA
Under the provisions of Proposition lA and as part of the 2009-10 budget package passed by the California
state legislature on July 28, 2009, the State of California borrowed 8% of the amount of property tax
revenue, including those property taxes associated with the in-lieu motor vehicle license fee, the triple flip
in lieu of sales tax, and supplemental property tax, apportioned to cities, counties and special districts
(excluding redevelopment agencies). The state is required to repay this borrowing plus interest by June 30,
2013. After repayment of this initial borrowing, the California legislature may consider only one additional
borrowing within aten-year period. The amount of this borrowing pertaining to the City of Chula Vista
was $4,488,610.
Authorized with the 2009-10 State budget package, the Proposition lA Securitization Program was
instituted by the California Statewide Communities Development Authority ("California Communities°), a
joint power authority sponsored by the California State Association of Counties and the League of
California Cities, to enable local governments to sell their Proposition lA receivables to California
Communities. Under the Securitization Program, California Communities simultaneously purchased the
Proposition 1A receivables and issued bonds ("Prop lA Bonds') to provide local agencies with cash
proceeds in two equal installments, on January 15, 2010 and May 3, 2010. The purchase price paid to the
local agencies equaled 100% of the amount of the property tax reduction. All transaction costs of issuance
and interest were paid by the State of Califonua. Participating local agencies have no obligation on the
bonds and no credit exposure to the State. The City participated in the securitization program and
accordingly property taxes have been recorded in the same manner as if the State had not exercised its
rights under Proposition lA. The receivable sale proceeds were equal to the book value and, as a result, no
gain or loss was recorded.
s-~a z
1/13/2011
City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
16. SUBSEQUENT EVENTS
In 2009, the State enacted legislation authorizing atwo-year takeaway of Redevelopment Agency funds.
The fiscal year 2009-2010 payment was $4,160,694 and it is anticipated another $855,797 would need to be
submitted for the fiscal year 2010-2011. This action was litigated by the California Redevelopment
Association and other parfies. This lawsuit challenges the constitutionality of ABX 4-26 and seeks to
prevent the State from taking redevelopment funds for non-development purposes. As of the date of this
report, the court's decision is currently being appealed and the results have not yet been determined. -
Management has evaluated subsequent events to determine if events or transactions through the date the
financial statements were available to be issued, require adjustment to, or disclosure in the financial
statements.
9-1~i13
1/13/2011
9->~~ 4
1/13/2011
REQUIRED
SUPPLEMENTARY INFORMATION
9-13~ 5
1/13/2011
City of Chula Vista
Required Supplementary Information
For the year ended June 30, 2010
1. BUDGETARY INFORMATION
An annual budget is adopted by the City Council prior to the first day of the fiscal year. The budget
process includes submittal of each department's budget request for the next fiscal year, a detailed review of
each department's proposed budget by the City Manager, and a final City Manager recommended budget
that is transmitted to the City Council for its review before the required date of adoption. Once transmitted
to the City Council, the proposed budget is made available for public inspection. A public hearing is held
to give the public the opportunity to comment upon the proposed budget. Notice of such public hearing is
given in a newspaper of general circulation.
The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of
budgetary control is at the department level. Any budget modification, which would result in an
appropriation increase, requires City Council approval. The City Manager and Finance Director are jointly
authorized to transfer appropriations up to $15,000 within a departmental budget. Any appropriation
transfers between departments or greater than $15,000 require City Council approval.
Reported budget figures are as originally adopted or subsequently amended plus prior year continuing
appropriations. Such budget amendments during the year, including those related to supplemental
appropriations, did not cause these reported budget amounts to be significantly different than the originally
adopted budget amounts. All appropriations which are not obligated, encumbered or expended at the end
of the fiscal year lapse and become a part of the unreserved fund balance which may be appropriated for
the next fiscal year.
An annual budget for the year ended June 30, 2010, was adopted and approved by the City Council for the
general, special revenue and debt service funds except for the Developer's Deposit Special Revenue fund,
which is used to account for various developer deposit for development projects and is used to fund staff
costs and other costs related to specific projects. These budgets are prepared on the modified accrual basis
of accounting. The budgets of the capital projects funds are primarily long-term budgets, which emphasize
major programs and capital outlay plans extending over a number of years. Because of the long-term
nature of these projects, annual budget comparisons are not considered meaningful, and accordingly, no
budgetary information for capital projects funds is included in the accompanying basic financial statements.
9-k~ 6
1/13/2011
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
BudPetarv Comtiarison Schedule, General Fund
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues:
Taxes $ 76,543,205 $ 74,543,205 $ 71,911,179 $ (2,632,026)
Intergovernmental 20,059,763 20,289,568 20,092,610 (196,958)
Licenses and permits 1,965,674 1,965,674 2,193,524 227,850
Charges for services 11,067,288 11,177,659 9,928,213 (1,249,446)
Fines and forfeitures 2,379,692 2,379,692 2,311,527 (68,165)
Use of money and property 1,780,322 7,834,368 3,079,142 1,244,774
Other 15,458,393 17,805,026 19,903,642 2,098,616
Total revenues 129,254,337 129,995,192 129,419,837 (575,355)
Expenditures:
Current:
General government
City council 1,218A63 1,218,463 1,117,458 107,005
Boards and Commissions 14,736 14,736 3,324 11,412
City clerks 1,051,554 1,165,554 896,412 269,142
City attorney 1,971,380 2,039,268 1,905,323 133,945
Administration 1,727,479 1,727,479 1,724,397 3,082
Management and information 3,145,.149 3,213,636 3,048,752 164,884
Human resources 7,627,135 7,592,135 6,189,837 1,402,298
Finance 3,164,019 3,261 ?61 3,023,702 237,559
Planning and building 8,859,256 8,889,770 8,565,391 324,379
Total general government 28,779,571 29,122,302 26,468,596 2.653,706
Public safety:
Police 44,032,525 44,052,664 43,700,489 352,175
Fire 21,055,584 21,467,309 22,093,020 (625,711)
Total public safety 65,088,109 fi5,519,973 65,793,509 (273,536)
Public works
Engineering 4,591,278 4,591,278 4,390,927 200,351
General Services 24,207,823 24,251,739 22,315,284 1,936,455
Total public works 28,799,101 28,843,017 26,706,211 2,136,806
Pazks and recreation 4,835,080 5,367,426 5,255,812 111,614
Library 5,136,312 5,174,425 4,563,849 610,576
Furlough and pension obligation bonds 1,787,674 3,542,233 4,195,367 (653,134)
Capita outlay - 741,737 454,786 286,951
Interest and fiscal charges - -
Totalexpenditures 134,425,847 138,311,113 133,438,130 4,872,983
REVENUES OVER
(UNDER) EXPENDITURES (5,171,510) (8,315,921) (4,018,293) 4,297,628
Other Financing Sources (Uses)
Transfers in 11,282,095 13,157,921 10,403,068 (2,754,853)
Transfers out (6,720,767) (6,780,507) (6,352,496) 428,011
Tota] other financing sources (uses) 4,561,328 6,377,414 4,050,572 (2,326,842)
Net change in fund balance $ (610,182) $ (1,938,507) 32,279 $ 1,970,786
Fund baance: -
Beginning of year 33,149,521
End of year $ 33,181,800
9-'h~ 7
1/13/2011
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budgetaru Comparison Schedule Sundrif Grants Special Revenue Fund
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues:
Intergovernmental $ 10,117,114 $ 21,591,329 $ 11,639,303 $ (9,952,026)
Charges for services 962,000 962,000 1,026,245 64,245
Use of money and property 20,000 20,000 134,573 114,573
Other 215,900 215,900 407,628 191,728
Total revenues 11,315,014 22,789,229 13,207,749 (9,581,480)
Expenditures:
Current:
General government 2,043,172 7,158,707 2,737,643 4,421,064
PubBc Safety 4,126,321 9,636,142 5,293,083 4,343,059
Public works 2,753,249 4,974,525 2,061,427 2,913,098
Pazks and recreation 1,600 1,600 - 1,600
Capital outlay 1,302,566 11,008,770 1,828,078 9,180,692
Total expenditures 10,226,908 32,779,744 11,920,231 20,859,513
REVENUES OVER
(UNDER) EXPENDITURES 1,088,106 (9,990,515) 1,287,518 11,278,033
Other Financing Sources (Uses)
Issuance of debt - 90,497 207,372 116,875
Transfers in 98,623 158,363 158,260 (103)
Transfers out (1,015,692) (1,015,664) (1,015,664) -
Total other financing sources (uses) (917,069) (766,804) (650,032) 116,772
Net change in fund balance $ 171,037 $ (10,757,319) 637,486 $ 11,394,805
Fund balance:
Beginning of year
End of yeaz
10,213,840
$ 10,851,326
9-;618
1/13/2011
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued
Budgetaru Co~arison Schedule Redevelopment AgenclLpecial Revenue Fund
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues:
Use of money and property $ 18,636 $ 18,636 $ 183,259 $ 164,623
Other - - 1,213 1,213
Total revenues 18,636 18,636 184,472 165,836
Expenditures:
Current
General government 1,425,861 1,475,348 470,404 1,004,944
Total expenditures 1,425,861 1,475,348 470,404 1,004,944
REVENUES OVER
(UNDER) EXPENDITURES (1,407,225) (1,456,712) (285,932) 1,170,780
Other Financing Sources (Uses)
Transfers in 2,945,077 2,945,077 2,776,928 (168,149)
Transters out (232,172) (232,172) (232,172) -
Total other finandng sources (uses) 2,712,905 2,712,905 2,544,756 (168,149)
Net change in fund balance $ 1,305,680 $ 1,256,193 2,258,824 $ 1,002,631
Fund balance:
Beginning of yeaz
End of year
11,922,351
$ 14,181,175
9-1~~ 9
1/13/2011
City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2010
- PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS)
SCHEDULE OF FUNDING PROGRESS
Miscellaneous Emblouees
Overfunded
(Unfunded) Actuarial
Entry Age Overfunded - Liability as
Actuarial Actuarial Actuazial Actuarial Permntage of
Valuation Asset Accrued Accrued Funded Covered Covered
Date Value Liability Liability Ratio Payroll PayroIl
6/?0/2007 $ 222787,140 $ 281,675,066 $ (54,887,926) 79.09% $ 58,318509 (lOD.98)
6/?0/2003 245,863,607 308,462,529 (62,593,922) 79.71% 49,459,253 (12Ci.56)%
6/30/2009 258,234,202 337,496,425 ('A,262,223) 76.51°k 45,211544 (175.31)%
Sa~tu Emplouees
Overfunded
(Unfunded) Actuarial
Fntry Age Overfunded Liability as
Actuarial Actuarial Actuazial Actuarial Percentage of
Valuation Asset Accrued Acwed Funded Covered Covered
Date Value Liability Liability Ratio Payroll PayroIl
6/30/2007 $ 208,978,683 $ 239,978,002 $ (31,049,319) 87.06% $ 34,665,240 (83.57)%
6/?0/20CS 226,791,902 255S48A74 (28,756,172) 88.75% 33,931,276 (84.75)%
6/30/2009 240,935,156 279516,735 (38,581,579) 8620% 34,149,134 (112.98)%
OTHER POST EMPLOYMENT BENEFITS
SCHEDULE OF FUNDING PROGRESS
Overfunded
(Unfunded) Actuarial
Fntry Age Overfunded Liability as
Actuarial Actuarial Actuazial Actuarial Percentage of
Valuation Asset Acaued Acaued Funded Covered Covemd
Dam Value Liability Liability Ratio Payroll Payroll
6/?0/2007 $ - $ - 9,608,000 $ (9,606,000) Q00°~ $ 93,172,648 (10.31)
6/°0/2009 $ - $ 11,885,000 $ (11,885,000) 000°/ $ 69,87,000 (17.20)
OPEB information is not available in earlier years as the City adopted GASB Statement No. 45 in 2008.
9-130
1/13/2011
SUPPLEMENTARY INFORMATION
s-~~1
1/13/2011
9-1~2
1/13/2011
NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Transportation Grants -This fund is used to account for revenues and expenditures received from the State
under the Street and Safety Code Sections 2106, 2107 and 2107.5. The allocations must be spent for street
maintenance or construction and a limited amount for engineering.
Parking Meter -This fund is used to account for revenues from on/off street parking and issued parking
citations within the parking district. The funds derived must be expended for a purpose substationally
connected with the problem of traffic regulation and control in the parking district.
Traffic Safety -This fund is a depository for all monies derived from vehicle code fines (excluding parking
violations). The fines are collected through the County court system and remitted to the City monthly.
These monies may be expended only for traffic control devices and equipment and maintenance thereof or
for the maintenance, improvement or construction of public streets.
Town Centre I -This fund is used to account for revenues from an in lieu parking fee. The in lieu parking
fee applies to any developer of a new commercial building or addition to an existing commercial building
within the Downtown Parking district. Use of monies in this fund is restricted for the purchase or
development of parking sites.
Developer Deposits -This fund is used to account for revenues received from various developers for
development projects and is used to fund staff costs, and other costs related to specific projects.
Open Space Districts -This fund is a depository for all monies received for all flat rate property tax
assessments levied against benefiting property owners for the maintenance of open space areas.
Housing Programs -This fund is for federal housing rehabIlitation monies held in trust by Bank of America
for issuance of housing rehab loans to qualified low and moderate income recipients.
Traffic Signals - This fund accounts for fees from developers for all new traffic signal construction.
Transportation Sales Tax -This fund was established for the receipt and disbursement of all transportation
sales tax revenues for the City.
Stnrm Drain -This fund is a depository for all monies collected from the monthly storm drain service
charge. Monies in this fund may be used for storm drain purposes.
Housing Authority -This fund is used to account for revenues and expenditures received from Local, State
and Federal governments for the City's program in promoting balanced housing for families of all income
levels.
9-tbP3
1/13/2011
NON-MAJOR
GOVERNMENTAL FUNDS
DEBT SERVICE FUNDS:
Public Financing Authority -This fund is used to account for financing the acquisition of bonds, notes and
other obligations of, or for the purpose of making loans to the City and / or to refinance outstanding
obligations of the City.
1994 POB -This fund receives payments from the City for payment of principal and interest due on 1994
taxable pension obligation bonds.
Notes Payable -This fund is used for the payment of principal and interest on various notes payable.
Lease Payable -This fund is used to account for the City's portion of the infrastructure and financing costs
of the San Diego County regional communications systems (RCS) and lease purchase of the Fire
Department's medical resuscitation equipment.
CAPITAL PROTECTS FUNDS:
Residential Construction Tax -This fund is a depository for fees levied for the construction, replacement or
conversion of all dwelling units within the City including hotels and motels.
Highway Safety -This fund is depository for the revenues received from State per Proposition 1B. Funds
must be spent for transportation projects to relieve congestion, improve the movement of goods, improve air
quality and security of the transportation system.
Bicycle Facility -This fund was established as a depository for local Transportation Development Act funds
(Article 3.0) received from the County for the purpose of bicycle related programs.
Industrial Development Authority -This fund was established to account for staff costs in assisting in the
issuance of industrial development bonds. A fee of 1/8 of 1% is charged to reimburse costs incurred.
Redevelopment Capital Projects -This fund was established to account for capital improvement projects
related to various redevelopment areas.
Assessment District Improvements -This fund was established as a depository for monies received from
issuance of bonds for various assessment districts. The monies are used to finance the construction of public
works improvements in the related districts.
Capital Improvement Program -This fund was established to set aside monies for capital improvement
projects. This fund does not generate revenues from any source except by transfer from other funds and
interest earned on monies in the fund. Monies transferred to the fund are expended for budgeted capital
improvement projects and monies remaining after completion of a project are transferred back to the fund
from which the project was originally financed.
9-bq4
1/13/2011
NON-MAJOR
GOVERNMENTAL FUNDS
CAPITAL PROTECTS FUNDS, Continued:
Transportation Partnership -This fund is a depository for the revenues received from the State and Local
Transportation Partnership Program. Funds must be spent for street purposes.
Other Transportation Program -This fund is a depository for the revenues received from the Federal
Highway Safety Improvement Program. Funds must be spent for street, public highway bridges and other
regional surface transportation programs.
Transportation Equity Act -This fund was established to account for reimbursable capital improvement
program such as highway safety, transit, and other surface transportation programs from FY98 through
FY2003 as required by PL 105-178.
Traffic Congestion Relief -This fund is a depository for the revenues received from Traffic Congestion Relief
Fund as required by AB2928. The monies must be spent for street or road maintenance or reconstruction.
9-b85
1/13/2011
City of Chula Vista
Combining Balance Sheet
Non-Major Governmental Funds
June 30, 2010
Revenue
Transportation Parking Traffic Town Developer Open Space
Grants Meter Safety Centre I Deposits Districts
ASSETS
Cash and investments $ 131,854 $ 324,585 $ 467,235 $ 49,803 $ 11,919,995 $ 12,186,917
Receivables:
Accounts - - - - -
Taxes 347,910 - - - - 91,490
Interest 242 824 2,108 151 - 33,034
Loans _ _ _ - _
Other - - - -
Due from other funds - - - - - 16,701
Due from other governments - - - - - -
Advances to other funds - - - - - -
Restrictedcash and investments:
Held by City - - - - - -
Held by fiscal agent - - - - - -
Totalassets $ 480,006 $ 325,409 $ 469,343 $ 49,954 $ 11,919,995 $ 12,328,142
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ 34,255 $ - $ - $ 441,955 $ 269,593
Due to other (ands - - - - - 16,701
Retention payable - - - - - -
Developer deposits - - - - 11,478,040 -
Deferred revenue - - - ~ - -
TotalBabilities - 34,255 - - 11,919,995 286,294
Fund Balances:
Reserved for:
Encumbrances - - -
Long-term receivable and advances - - - - - -
Debt service - - - - -
Inventoriesand prepaid items - - - - -
Tota] reserved - - - - - -
Unreserved: -
Designated for:
Contingency 31,994 106,028 - - - -
Capital projects - - - - - 657,016
Undesignated:
Special revenue 448,012 185,126 469,343 49,954 - 11,384,832
Debt service - - - - - -
Capita] projects - - - - - -
Totalunreserved 480,006 291,154 469,343 49,954 - 12,041,848
Total fund balances 480,006 291,154 469,343 49,954 - 12,041,848
Total liabilities and fund balances $ 480,006 $ 325,409 $ 469,343 $ 49,954 $ 11,919,995 $ 12,328,142
9-90Y 6
1/13/2011
Special Revenue
Housing Traffic Transportation
Programs Signals Sales Taz
$ 3,263 $ 3,691,922 $ 926,947 $
- 11,937 18,877
584,732 - -
169 - -
45,133 - -
Deht Service
Storm Drain
Housing
Authority Public
Financing 1994
Authority POB
31,607 $ 2,660,378 $ 10,236,160 $
78,493 - -
948 - -
254 3,022 11,102
- 55 -
- 67,821 -
Notes
Payahle
1 $ 97,395
- 133
1,441 - _ _ _ _ _ -
_ _ _ _ - 11,549,109 - -
$ 634,738 $ 3,703,859 $ 945,824 $ 111,302 $ 2,731,276 $ 21,796,371 $ 1 $ 97,528
$ 9,600 $ - $ 128,076 $ 2,298 $ 51,484 $ - $ - $ -
44,317 - - - - - - -
- - 212,217 - - - - -
- _ _ _ 100,000 - - -
4,148 - - - - - - -
58,065 - 340,293 2,298 151,484 - - -
26,313 59,618 2,902,046
580,584 - -
606,899 59,618 2,902,046
- 21,796,371 1 97,528
21,796,371 1 97,528
(30,226) 3,644,241 (2,296,515) 109,004 2,579,792 - - -
(30,226) 3,644,241 (2,296,515) 109,004 2,579,792 - - -
576,673 3,703,859 605,531 109,004 2,579,792 21,796,371 1 97,528
$ 634,738 $ 3,703,859 $ 945,824 $ 111,302 $ 2,731,276 $ 21,796,371 $ 1 $ 97,528
9-9087 (Continued)
1/13/2011
City of Chula Vista
Combining Balance Sheet
Non-Major Governmental Funds, Continued
June 30, 2010
ASSETS
Cash and investments
Receivables:
Accounts
Taxes
Interest
Loans
Other
Due from other funds
Due from other governments
Advances to other funds
Restricted cash and investments:
Held by City
Held by fiscal agent
Total assets
Debt Service Capita] Projects
Industrial Redevelopment
Lease Residential Highway Bicycle Development Capital
Payable Construction Tax Safety Facility Authority Projects
$ 184 $ 770,300 $ 2,584,670 $
$ 10,481 $ 3,344,109
- 2,598 9,593
- - 1,319,021
- - 887,011
236 30 8,957
_ - 493
- - 4,95x3,566
_ _ _ - - 3,6.14,134
$ 184 $ 772,898 $ 3,913,284 $ 236 $ 10,511 $ 12,848,270
LIABILITIES AND
FUNDBALANCES
Liabilities:
Accounts payable and accrued liabilities $ - $ - $ 24,298 $ - $ - $ 2,.117,930
Due to other funds - - - - -
Retention payable - - 133,24s - - 102,054
Developer deposits - - - - -
Deferredrevenue - - 3,385,408 236 - 1,347,350
Total liabilities - - 3,542,951 236 - 3,967,334
Fund Balances:
Reserved for:
Encumbrances - - 354,625 - - 278,295
Loans receivables and advances - - - - - 3,606,216
Debt service 184 - - -
Inventories and prepaid items - - - - -
Totalreserved 184 - 354,625 - - 3,884,511
Unreserved:
Desigiated foe:
Contingency - - - -
Capital projects - 772,898 15,708 - 10,511 4,996,425
Undesignated:
Special revenue - - - - -
Debt service - - - - -
Capital projects - - - -
Totalunreserved - 772,898 15,708 - 10,511 4,996,425
Total fund balances 184 772,898 370,333 - 10,511 8,880,936
Total liabilities and fund balances $ 184 $ 772,898 $ 3,913,284 $ 236 $ 10,511 $ 12,848,270
9-108
1/13/2011
Capital Projects
Assessment Other Traffic Tota]
District Capital Transportation Transportation Transportation Congestion Other
Improvement Improvement Partnership Program Equity Relief Governmental
Funds Program Fund Fund Act Fund Funds
$ 2,538,771 $ - $ 37,568 $ - $ - $ 35,704 $ 52,049,849
_ _ - _ - 78,493
502 - - - - - 1,327,861
7,037 - 121 - - 2,725 112,981
_ _ - - _ - 584,732
_ _ _ - _ - 717
_ _ _ - 1,403,543
_ _ - 1,515,456 239,672 595,012 2,395,273
_ _ - 4,953,566
_ _ - _ - _ 1,441
_ _ _ _ - 15,203,243
$ 2,546,310 $ - $ 37,689 $ 1,515,456 $ 239,672 $ 633,441 $ 75,111,699
$ _ $ $ - $ 67,994 $ - $ - $ 3,547,483
_ _ - 1,079,350 239,672 - 1,380,040
_ _ _ _ _ _ 447,516
_ _ - - 11,578,040
_ - 31,493 - 633,441 5,402,076
_ _ - 1,178,837 239,672 633,441 22,355,155
_ _ - 1,668,816 - - 5,289,715
_ _ - - _ - 4,186,500
_ _ _ - 21,894,084
- - 1,668,816 - - 31,370,599
- _ _ _ - 138,022
2,546,310 - 37,689 (1,332,197) - - 7,704,360
_ - _ - - 16,543,563
2,546,310 - 37,689 (1,332,197) - - 24,385,945
2,546,310 - 37,689 336,619 - - 55,756,544
$ 2,546,310 $ $ 37,689 $ 1,515,456 $ 239,672 $ 633,441 $ 78,111,699
(Concluded)
9-7039
1/13/2011
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds
For the year ended June 30, 2010
Revenue
Transportation Parking Traffic Town Developer Open Space
Grants Meter Safety Centre I Deposits Districts
REVENUES:
Taxes $ - $
Intergovernmental 3,831,534
Licenses and permits -
Developer fees -
Charges for services -
Fines and forfeitures -
Use of money and property 2,005
Other 2,310
Total revenues 3,835,849
EXPENDITURES:
Curren[:
General government -
Public safety -
Public works -
Cepitaloutlay 41,686
Debt Service:
Principal -
In[erestand fiscal charges - _
Total expenditures 41,686
REVENUES OVER
(UNDER) EXPENDITURES 3,794,163
OTFIER FINANCING SOURCES (USES):
Bond discount -
Re(undingbond issued -
Payment of refunded bond -
Transfers in -
Transfers out - (3,869,200)
Total other financing sources (uses) (3,869,200)
NET CHANGE IN FUND BALANCES (75,037)
EUND BALANCES:
32,533 - - - -
_ _ - 7,457,802 -
89,833 715,686 - - -
391,984 13,256 1,039 70,059 224,205
g58 - - - 9,651,585
515,208 728,942 1,039 7,527,861 9,875,790
425,923 561,118 - - -
_ _ - 7,527,861 8,893,937
25,784 - - - -
451,707 561,118 - 7,527,861 8,893,937
63,501 167,824 1,039 - 981,853
- (534,140) - - -
(534,140) - - -
63,501 (366,316) 1,039 - 981,853
Beginning of year 555,043 227,653 835,659 48,915 - 11,059,995
End of year $ 480,006 $ 291,154 $ 469,343 $ 49,954 $ - $ 12,041,848
9-lb$ 0
1/13/2011
Debt Service
Housing
Programs
Traffic
Signals
Transportation
Sales Tax
Storm Drain
Housing
Authority Public
Financing 1994
Authority POB
Notes
Payable
214,704 - - - - - - 96,432
- - - 48,907 - - - -
- - - - 2,000,000 - - -
- 113,132 - 158,443 251,730 - - -
- - - 6,975 - - - -
974 80,473 85,809 1,647 23,984 430,666 - 1,094
124,966 - 7,979 - 824,147 25,000 - -
340,644 193,605 93,788 615,972 3,099,861 455,666 - 97,526
141,520 - - - 854,009 14,388 2,475 -
- - - - - 7,157 - -
- 20,886 - 333,519 - - - -
- 374,645 10,783,915 - - - - -
- - - - - 3,525,000 2,020,000 320,157
- - - - - 6,451,055 486,687 462,427
141,520 395,531 10,783,915 333,519 854,009 9,997,600 2,509,162 782,584
199,124 (201,926) (10,690,127) 282,453 2,245,852 (9,541,934) (2,509,162) (685,058)
- - - - - (925,872) - -
- - - - - 29,355,000 - -
- - - - 273,172 28,130,002 2,508,569 782,584
- - (1,429) (290,463) (192,899) - (18,279,767) - -
- - (1,429) (290,463) 80,273 21,569,363 2,508,569 782,584
199,124 (201,926) (10,691,556) (8,010) 2,326,125 12,027,429 (593) 97,x26
377,549 3,905,785 11,297,087 117,014 253,667 9,768,942 594 2
$ 576,673 $ 3,703,859 $ 605,531 $ 109,004 $ 2,579,792 $ 21,796,371 $ 1 $ 97,528
(Continued)
9-9031
1/13/2011
City of Chula Vista
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Governmental Funds, Continued
For the year ended June 30, 2010
Debt Service Capital Projects
Industrial Redevelopment
Lease Residential Highway Bicycle Development Capital
Payable Construction Taz Safety FacIlity Authority Projects
REVENUES -
Tazes $ - $ 159,220 $ - $ - $ - $ 15,193,535
Intergovernmental - - - 178,203 - -
Lirenses and permits - - - - - -
Developer tees - - - - -
Charges for services - - - - -
- Fines and forfeitures - - -
Use of money and property 4 14,399 62,631 1,219 211 67,026
Other - 136,924 - - - 787,510
Total revenues 4 310,543 62,631 179,422 211 16,048,071
EXPENDITURES:
Current
General government _ - - - - - 9'781'6''8
Public safety - - - - -
Publicworks - - - - -
Capital outlay - 17,894 3,063,931 180,851 - 1,612,273
Deb[ Service:
Principal 371,205 - - - - -
Interestand fiscal charges 96,745 - - - - -
Totalexpenditures 467,950 17,894 3,063,931 180,851 - 11,393,931
REVENUES OVER
(UNDER) E7CPENDTFURES (467,946) 292,649 (3,001,300) (1,429) 211 4,654,140
OTHER FINANCING SOURCES (USES):
Bond discount - - - - -
Refunding bond issued - - - - -
Payment of refunded bond - - - - -
Transfersin 467,949 - - 1,429 - 4,160,694
Transfers out - - (646,681) - - - (8,438,437)
Total other financing sources (uses) 467,949 (646,681) - 1,429 - (4,277,743)
NET CHANGE IN PUND BALANCES 3 (3.x1,032) (3,001,300) - 211 376,397
FUND BALANCES:
Beginning of year, as restated 181 1,126,930 3,371,633 - 10,300 8,504,539
End of year $ 184 $ 772,898 $ 370,333 $ - $ 10,511 $ 8,880,936
9-182
1/13/2011
Assessment Other -- Traffic Total
District Capital Transportation Transportation Transportation Congestion Other
Improvement Improvement Partnership Program Equity Relief Governmental
Funds Program Fund Fund Act Fund Funds
$ - $ - $ - $ - $ - $ - $ 15,352,755
- - - 2,910,334 183,272 2,819,204 10,233,683
_ _ - - - - 81,440
- - - - - - 9,457,802
_ - - - - - 923,305
_ - - - - - 812,494
48,237 2 803 (20,545) - 19,906 1,521,088
30,351 - - - - - 11,591,630
78,585 2 803 2,589,789 183,272 2,839,110 49,974,197
- 1,293,019 - - - - 12,087,069
- - - - - - 994,198
_ _ _ - _ - 16,776,203
- - 4,217 2,922,700 183,272 839,110 20,050,278
_ - - - - - 6,736,362
_ _ - _ - - 7,496,914
- 1,293,019 4,217 2,922,700 183,272 839,110 63,641,024
78,588 (1,293,017) (3,414) (32,911)
2,000,000 (13,666,827)
(925,872)
_ _ _ _ _ - 29,355,000
_ _ _ _ - - (16,710,000)
- - - - - - 36,324,399
(3,554) (100,656) - (1,402,000) - (2,000000) (35,759,526)
(3,854) (100,656) - (1,402,000) - (2,000,000) 12,284,001
74,734 (1,393,673) (3,414) (1,434,911) - - (1,382,826)
2,471,576 1,393,673 41,103 1,771,530 - - 57,139,370
$ 2,546310 $ - $ 37,689 $ 336,619 $ - $ - $ 55,756,544
(Concluded)
9-h33
1/13/2011
9-~54
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
RDA Debt Service Fund -Major Governmental Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal
Interest and fiscal charges
Bond issuance cost
Total expenditures
REVENUES OVER
(UNDER) EXPENDTTURES
Other Financing Sources (Uses)
Bond discount
Refunding bond issued
Payments to escrow agent trust
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
_$
Actual Variance with
Amounts Final Budget
$ 101,356 $ 101,356
698 698
102,054 102,054
10,000 7,855 2,145
1,064,999 1,065,000 (1)
3,643,582 3,254,487 389,095
4,718,581 4,327,342 391,239
(4,718,581) (4,225,288) 493,293
5,984,423 4,534,122 (1,450,301)
(6,943,336) (4,160,694) 2,782,642
(958,913) 373,428 1,332,341
$ (5,677,494) (3,851,860) $ 1,825,634
(25,990,423)
$ (29,842,283)
9-135
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
City Debt Service Fund -Major Governmental Fund
For the year ended June 30, 2010
Expenditures:
Debt service:
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ 300,000 $ 834,415 $ (534,415)
300,000 834,415 (534,415)
(300,000) (534,415) (534,415)
5,607,534 395,157 (5,209,377)
(5,300,000) (5,300,000) -
307,534 (4,901,843) (5,209,377)
$ 7,534 (5,736,258) $ (5,743,792)
(20,702,177)
$ (26,438,435)
9-71136
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Transportation Grants Special Revenue Fund
For the year ended June 30, 2010
Revenues:
Intergovernmental
Use of money and property
Other
Total revenues
Expenditures:
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ 3,742,716 $ 3,831,534 $ 88,818
- 2,005 2,005
- 2,310 2,310
3,742,716 3,835,549 93,133
41,688 41,686 2
41,688 41,686 2
3,701,028 3,794,163 93,135
(3,869,200) (3,869,200) -
(3,869,200) (3,869,200) -
$ (168,172) (75,03'1) $ 93,135
555,043
$ 480,006
9-~1~
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Parking Meter Special Revenue Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Licenses and permitr
Fines and forfeitures
Use of money and property
Other
Total revenues
Expenditures:
Current:
Public safety
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDFIURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Actual Variance with
Amounts Final Budget
38,000 $ 32,533 $ (5,467)
134,126 89,833 (44,293)
396,000 391,984 (4,016)
- 858 858
568,126 515,208 (52,918)
428,127 425,923 2,204
209,273 25,784 183,489
637,400 451,707 185,693
(69,274) 63,501 132,775
(69,274) 63,501 $ 132,775
227,653
$ 291,154
s-1><as
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Traffic Safety Special Revenue Fund
For the year ended June 30, 2010
Revenues:
Fines and forfeitures
Use of money and property
Total revenues
Expenditures:
Current:
Public safety
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ 534,140 $ 715,686 $ 181,546
- 13,256 13,256
534,140 728,942 194,802
466,700
466,700
67,440
561,118 (94,418)
561,118 (94,418)
167,824 100,384
(534,140) (534,140)
(534,140) (534,140)
$ (466,700) (366,316)
835,659
$ 469,343
$ 100,384
9-11$9
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Town Centre I Special Revenue Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Charges for services
Use of money and property
Total revenues
Expenditures:
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
Fund balance:
Beginning of year
End of year
Actual
Amounts
Variance with
Final Budget
$ - $ - $
- 1,039 1,039
- 1,039 1,039
10,433 - 10,433
10,433 - 10,433
(10,433) 1,039 11,472
$ (10,433) 1,039 $ 11,472
45,915
$ 49,954
9-]1140
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Open Space Districts Special Revenue Fund
For the year ended June 30, 2010
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
Public works
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Net change in fund balance
Fund balance:
Begiruung of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ - $ 224,205 $ 224,205
11,866,649 9,651,585 (2,215,064)
11,866,649 9,875,790 (1,990,859)
11,874,682
11,874,682
(8,033)
$ (8,033)
8,893,937 2,980,745
8,893,937 2,980,745
981,853 989,886
981,853 $ 989,886
11,059,995
$ 12,041,848
9-h41
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Housing Programs Special Revenue Fund
For the year ended June 30, 2010
Final
Budget
Actual
Amounts
Variance with
Final Budget
Revenues:
Intergovernmental $ 547,400 $ 214,704 $ (332,696)
Use of money and property - 974 974
Other - 124,966 124,966
Total revenues 547,400 340,644 (206,756)
Expenditures:
Current:
General governments 572,820 141,520 431,300
Total expenditures 572,820 141,520 431,300
REVENUES OVER
(UNDER) EXPENDITURES (25,420) 199,124 224,544
Net change in fund balance $ (25,420) 199,124 $ 224,544
Fund balance:
Beginning of year 377,549
End of year $ 576,673
9-}z~ 2
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Traffic Signals Special Revenue Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Charges for services
Use of money and property
Total revenues
Expenditures:
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Actual Variance with
Amounts Final Budget
$ 250,000 $ 113,132 $
- 80,473
250,000
(136,868)
80,473
193,605 (56,395)
31,990 20,886 11,104
2,835,163 374,645 2,460,518
2,867,153 395,531 2,471,622
(2,617,153) (201,926) 2,415,227
$ (2,617,153) (201,926) $ 2,415,227
3,905,785
$ 3,703,859
9-9243
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Transportation Sales Tax Special Revenue Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Taxes
Use of money and property
Other
Total revenues
Expenditures:
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Actual
Amounts
Variance with
Final Budget
$ 11,827,65$ $ - $ (11,827,655)
- 85,809 85,809
- 7,979 7,979
11,827,655 93,788 (11,733,867)
20,406,799 10,783,915 9,622,884
20,406,799 10,783,915 9,622,884
(8,579,144) (10,690,127) (2,110,983)
(1,429) (1,429) -
(1,429) (1,429) -
$ (8,580,573) (10,691,556) $ (2,110,983)
11,297,087
$ 605,531
9->k44
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Storm Drain Special Revenue Fund
For the year ended June 30, 2010
Final Actual Variance with
Budget Amounts Final Budget
Revenues:
Licenses and permits $ 25,000 $ 48,907 $ 23,907
Charges for services 500,000 558,443 58,443
Fines and forfeitures - 6,975 6,975
Use of money and property - 1,647 1,647
Total revenues 525,000 615,972 90,972
Expenditures:
Current:
Public works
Capital outlay
Total expenditures
REVENUES OVER
(UNDER) EXPENDTTURES
Other Financing Sources (Uses)
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Begintting of year
End of year
257,655 333,519 (75,864)
33,367 - 33,367
291,022 333,519 (42,497)
233,978 282,453 48,475
(290,463) (290,463) -
(290,463) (290,463) -
$ (56,485) (8,010) $ 48,475
117,014
$ 109,004
9-9245
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Housing Authority Special Revenue Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Developer fees
Charges for services
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
$ 2,000,000 $
63,442
1,016,341
3,079,783
2,871,661
2,871,661
208,122
854,009 2,017,652
2,245,852 2,037,730
273,172 273,172 -
(192,899) (192,899) -
80,273 80,273 -
$ 288,395 2,326,125 $ 2,037,730
253,667
Actual Variance with
Amounts Final Budget
2,000,000 $
251,730 188,288
23,984 23,984
824,147 (192,194)
3,099,861 20,078
854,009 2,017,652
$ 2,579,792
9-1h46
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Public Financing Authority Debt Service Fund
For the year ended June 30, 2010
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current
General government
Public safety
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Bond discount
Refunding bond issued
Payment of refunded bond
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ - $ 430,666 $ 430,666
- 25,000 25,000
- 455,666 455,666
16,000 14,388 1,612
10,700 7,157 3,543
3,540,000 3,525,000 15,000
5,891,650 6,451,055 (559,405)
9,458,350 9,997,600 (539,250)
(9,458,350) (9,541,934) (83,584)
- (925,872) (925,872)
- 29,355,000 29,355,000
(1,070,000) (16,710,000) (15,640,000)
10,412,178 28,130,002 17,717,824
- (18,279,767) (18,279,767)
9,342,178 21,569,363 12,227,185
$ (116,172) 12,027,429 $ 12,143,601
9,768,942
$ 21,796,371
9-1247
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
1994 POB Debt Service Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Use of money and property
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
2,500
2,020,000
486,688
2,509,188
Actual Variance with
Amounts Final Budget
$ - $
2,475 25
2,020,000 -
486,687 1
2,509,162 26
(2,509,188) (2,509,162)
2,509,188
2,509,188
26
2,508,569 (619)
2,508,569 (619)
(593) $ (593)
594
$ 1
9-~ 8
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Notes Payable Debt Setvice Fund
For the year ended June 30, 2010
Final Actual Variance with
Budget Amounts Final Budget
Revenues:
Intergovernmental $ - $ 96,432 $ 96,432
Use of money and property - 1,094 1,094
Total revenues - 97,526 97,526
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
$ 585,870 $
390,714
976,584
320,157 $ 265,713
462,427 (71,713)
782,584 194,000
(976,584) (685,058)
291,526
976,584 782,584 (194,000)
976,584 782,584 (194,000)
- 97,526 $ 97,526
2
$ 97,528
9-12A9
1/13/2011
City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Lease Payable Debt Service Fund
For the year ended June 30, 2010
Final
Budget
Revenues:
Use of money and property
Total revenues
Expenditures:
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Total other financing sources (uses)
Net change infund balance
Fund balance:
Beginning of year
End of year
Actual
Amounts
Variance with
Final Budget
$ - $ 4 $ 4
- 4 4
371,205 371,205 -
96,745 96,745 -
467,950 467,950 -
(467,950) (467,946) 4
467,950 467,949 (1)
467,950 467,949 (1)
$ - 3 $ 3
181
$ 184
9-112 0
1/13/2011
NONMAJOR
ENTERPRISE FUNDS
Transit Fund -This fund is used to account for the maintenance and development of the transit related
-- projects.
Bayfront Trolley Fund - This fund is used to account for the maintenance and development of the Bayfront
Trolley Station. --
Sewer DIFS Fund -This fund is a depository for a portion of the revenue derived from the monthly sewer
service charge. Monies in this fund shall be used solely for the purpose of refurbishment and/or
replacement of sewerage facilities including related evaluation, engineering and utility modification costs.
9-9251
1/13/2011
City of Chula Vista
Combining Statement of Net Assets
Nonmajor Enterprise Funds
June 30, 2010
Bayfront
Transit Trolley Sewer
Fund Starion DIFS Fnnd Total
ASSETS
Current assets:
Cash and investments
Receivables:
Interest
Other
Total current assets
Noncurrent assets:
Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
Unearned revenues
Total current liabilities
Noncurrent liabilities:
Advances from other funds
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets
Unrestricted
Total net assets
$ 1,210;098 $ 9,871 $ 8,478,209 $ 9,698,178
6,389 - 26,466 32,855
211 - - 211
1,216,698 9,871 8,504,675 9,731,244
3,159,558 - 2,281,387 5,440,945
3,159,SSS - 2,281,387 5,440,945
4,376,256 9,871 10,786,062 15,172,189
204,320 1,229 - 205,549
862,852 8,642 - 871,494
1,067,172 9,871 - 1,077,043
- - 3,976,516 3,976,516
- - 3,976,516 3,976,516
1,067,172 9,871 3,976,516 5,053,559
3,159,558 - 2,281,387 5,440,945
149,526 - 4,528,159 4,677,685
$ 3,309,084 $ - $ 6,809,546 $ 10,118,630
9-x352
1/13/2011
City of Chula Vista
Combining Statement of Revenues, Expenses, and Changes in Net Assets
Nonmajor Enterprise Funds
For the year ended June 30, 2010
Bayfront
Transit Trolley Sewer
_ Fund Station DIFS Fund Total
OPERATING REVENUES:
Charges for services
Other-
Total operating revenues
OPERATING EXPENSES:
Operation and administration
Maintenance
Depreciation
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES:
Intergovernmental
Interest revenue
Interest expenses
Total nonoperating revenues
Income (loss) before transfers
TRANSFERS:
Transfers out
Total transfers
Net increase (decrease)in net assets
NET ASSETS:
Beginning of year
End of year
$ 3,335,334 $
116,509
3,451,843
- $ 166,303 $ 3,501,637
- 116,509
- 166,303 3,618,146
6,710,857 94,802
13,038 -
848,003 -
7,571,898 94,802
(4,120,055) (94,802)
2,619 6,808,278
472 13,510
60,000 908,003
63,091 7,729,791
103,212 (4,111,645)
3,264,832 92,734 - 3,357,566
37,664 - 177,993 215,657
_ - (62,928) (62,928)
3,302,496 92,734 115,065 3,510,295
(817,559) (2,068) 218,277 (601,350)
(81,997) - (250,000) (331,997)
(81,997) - (250,000) (331,997)
(899,556) (2,068) (31,723) (933,347)
4,208,640 2,068 6,841,269 11,051,977
$ 3,309,084 $ - $ 6,809,546 $ 10,118,630
9-1353
1/13/2011
City of Chula Vista
Combining Statement of Cash Flows
Nonmajor Enterprise Funds
For the year ended June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received Erom customers
Cash received from other funds
Cash payments to suppliers and employees Eor goods and services
Other operating revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets
Net cash provided by noncapital financing activities
CASH FLOWS FROM NONCAPTTAL AND RELATED FINANCING ACTIVITIES:
Intergovernmental
Interest expenses
Transfers (out)
Net cash provided (used) by noncapital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue
Net cash used by investing activities
Net increase (decease) in cash and investments
CASH AND INVESTMENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating loss to
net cash provided (used) by operating activities:
Depreciafion
Changes in operating assets and liabilities:
Other receivable
Accounts payable and accrued liabilities
Unearned revenue
Advances from other funds
Total adjustments
Net cash provided (used) by operating activities
Bayfront
_Transit Trolley Sewer
Fund Station DIFS Fund Total
$ 2,721,589 $ 3,274 $ 166,303 $ 2,891,166
- - 62,927 62,927
(6,531,225) (96,370) (21,191) (6,648,786)
116,509 - - 116,509
(3,693,127) (93,096) 208,039 (3,578,184)
57,269 - (39,064) 18,205
57,269 - (39,064) 18,205
3,264,832 92,734 - 3,357,566
- - (62,928) (62,928)
(81,997) - (250,000) (331,997)
3,182,835 92,734 (312,928) 2,962,641
45,530 284 194,610 240,424
45,530 284 194,610 240,424
(407,493) (78) 50,657 (356,914)
1,617,591 9,949 8,427,552 10,055,092
$ 1,210,098 $ 9,871 $ 8,478,209 $ 9,698,178
$ (4,120,055) $ (94,802) $ 103,212 $ (4,111,645)
848,003
60,000 908,003
61,922 - - 61,922
192,670 (1,568) (18,100) 173,002
(675,667) 3,274 - (672,393)
- - 62,927 62,927
426,928 1,706 104,827 533,461
$ (3,693,127) $ (93,096) $ 208,039 $ (3,578,184)
9-9x54
1/13/2011
INTERNAL SERVICE FUNDS
Internal Service Funds are used to finance and account for special activities and services performed by a
designatecLCity department for other departments on a cost reimbursement basis.
Fleet Management - This fund was established to account for vehicle and equipment services
provided to City departments. Revenue accruing to this fund comes from charges to City
departments benefiting from services provided.
Technology Replacement - This fund was established to account for computer and other
technology services provided to City departments. Revenue accruing to this fund comes from
charges to city departments benefiting from services provided.
9-]355
1/13/201 1
City of Chula Vista
Combining Statement of Net Assets
All Internal Service Funds
June 30, 2010
Fleet Tectmology
Management Replacement Total
ASSETS
Current assets:
Cash and investments
Receivables:
Interest
Other
Total current assets
Noncurrent assets:
Capital assets, net
Total noncurrent assets
Total assets
LIABILITIES
Current liabilifies:
Accounts payable and accrued liabilities
Total current liabilities
Noncurrent liabilities:
Compensated absences
Total noncurrent liabilities
Tota] liabilities
NET ASSETS
Invested in capital assets
Unrestricted
Total net assets
$ 1,79,544 $ 10,188 $ 1,789,732
4,524 - 4,524
36,894 - 36,894
1,820,962 10,188 1,831,150
1,371,663 - 1,371,663
1,371,663 - 1,371,663
3,192,625 10,188 3,202,813
338,264 606 338,870
338,264 606 338,870
63,966 - 63,966
63,966 - 63,966
402,230 606 402,836
1,371,663 - 1,371,663
1,418,732 9,582 1,428,314
$ 2,790,395 $ 9,582 $ 2,799,977
9-1356
1/13/2011
City of Chula Vista
Combining Statement of Revenues, Expenses, and Changes in Net Assets
All Internal Service Funds
For the yeaz ended June 30, 2010
- Fleet Technology
-- Management Replacement Total
OPERATING REVENUES:
Charges for services $ 3,730,823 $ - $ 3,730,823
Other - 22,369 - 22,369
Total operating revenues 3,753,192 - 3,753,192
OPERATING EXPENSES:
Operation and administration 3,470,185 5,257 3,475,442
Depreciafion 684,755 - 684,755
Total operating expenses 4,154,940 5,257 4,160,197
Operating income (loss) (401,748) (5,257) (407,005)
NONOPERATING REVENUES:
Interest revenue 36,158 - (221) 35,937
Gain on disposal of capital assets 91,910 - 91,910
Total nonoperafing revenues - 128,068 (221) 127,847
Income (loss) before transfers (273,680) (5,478) (279,158)
TRANSFERS:
Transfers in - - -
Transfers out - (7,382) (7,382)
Total transfers - (7,352) (7,382)
Net increase (decrease)in net assets (273,680) (12,860) (286,540)
NET ASSETS:
Begitming of year - 3,064,075 22,442 3,086;517
End of year $ 2,790,395 $ 9,582 $ 2,799,977
9-~ 7
1/13/2011
City of Chula Vista
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2010
Pleet Technology
Management Replacement Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from other funds
Cash payments to suppliers and employees for goods and services
Other operating revenues
Net cash provided (used) by operating activities
CASH FLOWS FROM CAPTTAL AND RELATED FINANCING ACTIVTTIES:
Acquisition of capital assets
Proceeds received from disposal of capital assets
Net cash provided by noncapital financing actvities
CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES:
Transfers (out)
Net cash provided (used) by noncapital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest revenue
Net cash used by investing activities
Net inaease (decease) in cash and investments
CASH AND INVESTMENTS:
Beginning of year
End of year
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVH)ED (USED) BY OPERATING ACTIVITIES:
Operating income (loss)
Adjustments to reconcile operating loss to
net cash provided (used) by operating activities:
Depreciation
Changes in operating assets and liabilities:
Other receivable
Accounts payable and accrued liabilities
Compensated absences
Total adjustments
Net cash provided (used) by operating activities
$ 3,733,106 $ - S 3,733,106
(3,453,267) (4,929) (3,458,196)
22,369 - 22,369
302,208 (4,929) 297,279
(278,979) - (278,979)
91,910 - 91,910
(187,069) - (187,069)
- (7,382) (7,382)
- (7,382) (7,382)
37,418 - 37,418
37,418 - 37,418
152,557 (12,311) 140,246
1,626,987 22,499 1,649,486
$ 1,779,544 $ 10,188 $ 1,789,732
$ (4o1,74s) $ (s,zs7) $ (4o7,oos)
684,755 - 684,755
2,283 - _ 2,283
12,085 328 12,413
4,833 - 4,833
703,956 328 704,284
$ 302,208 $ (4,929) $ 297,279
9-1368
1/13/2011
FIDUCIARY FUND
AGENCY FUND
The Agency Fund is used to account for assets held by the City in a trustee capacity for individuals, private
organizations, other governments, and/or other funds.
Special Assessment District -This fund accounts for all money collected to pay for debt services
of the various assessment districts for which the City acts as paying agent but has no legal
commitment or obligation.
9-~59
1/13/2011
City of Chula Vista
Statement of Changes in Assets and Liabilities
Agency Fund
For the year ended June 30, 2010
Balance Balance
July 1, 2009 Additions Deletions June 30, 2010
Soecia] Assessment Disfrict
Assets:
Cash and investments $ 7,983,983 $ 26,346,483 $ {26,637,672) $ 7,692,794
Restricted cash and investments:
Held by fiscal agents 136,102,877 16,165,955 (48,709,970) 103,558,862
Total assets $ 144,086,860 $ 42,512,438 $ (75,347,642) $ 111,251,656
Liabilities:
Due to bondholders $ 144,086,860 $ 42,512,438 $ (75,347,642) $ 111,251,656
Total liabilities $ 144,086,860 $ 42,512,438 $ (75,347,642) $ 111,251,656
9-itrfi0
1/13/2011
CITY OF CHULA VISTA
Statistical Section
June 30, 2010
This part of the City of Chula Vista's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the city's overall financial health.
Table of Contents
Pace No.
Financial Trends 140-144
These schedules contain information to help the reader understand how
the city's financial performance and well-being have changed over
time.
Revenue Capacity 145-148
These schedules contain information to help the reader assess the factors
affecting the city's ability to generate its property and sales taxes.
Debt Capacity 149-154
These schedules present information to help the reader assess the
affordability of the city's current levels of outstanding debt and the city's
ability to issue additional debt in the future.
Demographic and Economic Information 156-158
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the city's financial
activities take place and to help make comparisons over time and with
other governments.
Operating Information 159-161
These schedules contain information about the city's operations and
resources to help the reader understand how the city's financial
information relates to the services the city provides and the activities
it performs.
9->h~ 1
1/13/2011
City of Chula Vista
Net Assets by Component
Last Nine Fiscal Years
(accrual basis of accounting)
2002 2003 2004 2005 2006 2007 2008 2009 2010
Govenvnental activities:
Invested in capital azsets,
net of related debt $382,552,076 $456,096,957 $537,716,998 $600.317,974 $662,230,041 $715,090,836 $621,876,119 $623,938,515 $634,377,892
Restricted 27,640,955 55,203,919 55,283,141 72,468,247 75,916,972 69,516,915 55,166,660 43,901,854 49,193,256
Unrestricted 77,110,077 103,843,928 110,825,189 111,498,751 95,782,921 126,026,156 91,683,171 89,735,419 73,916,496
Total governmental activities net assets 487,303,108 615,144,804 703,825,328 764,234,972 833,929,934 910,633,909 768,727,950 757,075,788 757,487,594
Business-Tyye activities:
Invested in capital assets,
net of related debt 7,951,380 7,156,534 6,217,348 7,423,479 6,540,514 5,656,433 750,004,170 146,237,562 152,364,420
Restricted - - - - - - - -
Unrestricted 1,424,557 362007 361,697 580,735 500,299 335,824 55,294,988 64,860,578 74,385,651
Total business-type activifies net assets 9,375,937 7,516,541 6,599,045 $004,214 7,040,813 5,994,257 205,299,158 213,098,140 226,770,071
Primary government
Invested in capital assets,
net of related debt 390,763,961 463,253,491 543,934,346 607,741,453 666,770,555 720,749,271 771,882,269 772,176,077 786,762,262
Restricted 27,640,955 55,203,919 55,283,141 72,468,297 75,916,972 69,516,931 55,166,660 43,901,854 49,193,256
Unrestricted 70,214,464 104,205,935 111,206,886 112,029,986 96,283,220 126,361,960 146,978,159 154,095,997 746,302,147
Total primary government net assets $488,619,384 $622,663,345 $710,424,373 $792,239,166 $840,970,747 $916,626,166 $974,027,108 $970,173,928 5984,257,665
The City of Chula Vista implemented GASB 34 for the fiscal year ended June 30, 2002. Infor mation prior to the implenrentakon of GASB 34 is not
available. Sewer funds were conx~erted to an enterprise fund in fiscal year 2008.
9-1962
1/13/2011
City of Chula Vista
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
2002 2003 2004 2005 2006 2007 2008 2009 2010
Expenses:
Governmental activities:
General government $ 36,021,946 $ 36,112,144 $ 37,542,162 $ 42,591,851 $ 53,566,425 $ 45,249,650 $ 51,609,403 $ 49,216,220 $ 51,136,912
Public safety 44,097,317 46,795,935 54,974,182 63,368,815 72,887,220 77,136,782 78,633,467 76,097,546 74,008,767
Public works 60,089,674 60,981,126 71,482,668 79,]23,829 102,122,564 103,117,608 86,410,062 72,509,T/9 69,524,903
Parks and recreation 8,976,959 7,213,329 5,854,495 7,757,251 8,085,160 9,353,280 9,650,399 9,805,893 7,849,907
Library 7,205,111 8,110,316 8,845,277 8,890,126 10,412,973 10,320,817 8$32,621 7,617,286 4,826,602
Interest on long-term debt 10,938,706 9,322,963 12,827,332 12,656,986 12,263,808 12,032,833 13,656,534 13,064,138 11,217,753
ToW governmental activities expenses 166,7]6,713 168,535,373 191,526,116 214,988,853 259,338,150 257,210,970 248,492,506 228,310,862 218,564,344
Business-type acfivkies:
Transit 7,073,358 7,797,769 7,257,T22 7,475,184 7,947,393 7,330,560 8,301,081 8,147,424 7,571,898
Bayfront Trolley Station 102,583 79,593 85,567 98,900 86,595 103,691 98,406 98,800 94,802
Sewer funds - - 30,323,015 23,528,217 29,240,616
Sewer DIPS - - - - - - 203,500 200,660 126,0]9
Interest on long-term debt 62,927 -
To[albusiness-type activities expenses 7,175,94] 7,BT7,362 7,343,289 7,574,084 7,533,986 7,434,251 38,988,929 31,975,101 37,033,335
Total primary government expetues 173,952,654 176,412,675 198,869,405 222,562,937 266,872,138 264,645,221 287,481,435 260,285,963 25a97,b79
Program revenues:
Governmental actvities:
Charges for services:
General government 23,990,385 29,530,624 35,075,023 37,464,481 52,310,629 45,255,716 38,563,065 35,959,181 32,419,505
Public safety 4,465,958 5,003,310 9,991,565 9,555,756 11,598,587 7,311,907 8,198,817 7,954,060 8,833,813
Public works 31,651,057 34,193,401 46,862,521 40,020,387 52,749,415 45,520,978 23,112,265 25,793,234 28,761,170
Parks and recreation 1,559,120 1,534,116 25,000]48 15,702,515 26,935,981 19,106,017 11,881,197 2,T76,032 2,59,668
Library 290,393 603,136 2,751,059 2,220,368 2,693,087 818,285 561,948 326,116 505,044
Operating grants and contributions 24,516,560 23,272,659 17,426,794 22,226,690 19,464,389 16,646,713 34,498,639 18,957,467 17,989,120
Capital grants and contributions 1,627,819 2,190,909 1,783,068 79,419,189 57,074,361 85,608,765 50,632,109 16,754,583 23,711,994
Total governmental activitles
program revenues 88,101,292 96,328,15 138,890,728 206,609,386 222,826,469 220,267,881 167,398,010 108,520,673 11yT/5,316
easiness-type activitles:
Charges for services:
Transit 2.289,591 2,319,322 2,525,349 2,425,531 2526,987 2,433,008 1,660,821 3,679,761 3,335,334
Sewer funds - - - - - - 29,138,449 31,046,180 36,284,081
Sewer Dffs - - - - - - 539,136 232,430 166,303
Operating grants and conMbutions 2,621,995 3,610,307 3,805,056 4,731,445 - - 5,378,518 3,390,228 3,357,566
Capital grants and contributions 3,248,226 - - 1,971,311 - - -
Totalbusiness-type activitles
812
8
159 629
5
929 6,33Q405 8,628,287 2,526,987 2,933,008 36,716,924 38,348,599 43,143,284
program revenues ,
, ,
,
Total primary government
program revenues 96,261,104 102,257,784 195,221,133 2]5,237,673 225,352,956 222,700,889 204,114,934 146,869,272 ]57,918,598
9-~3
1/13/2011
City of Chula Vista
Changes in Net Assets
Last Nine Fiscal Years
(accrual basis of accounting)
2002 2003 2004 2085 2006 2007 2008 2009 2010
Nel revenues (expenses):
Covemmental activities (78,675,421) (72,207,158) (52,635,388) (8,379,967) (36,511,681) (36,993,089) (81,099,996) (119,790,189) (103,789,030)
Business-type activitfes 983,671 (1,947,733) (1p12,884) 1,054,203 (5,007,501) (5,001,243) (2272,005) 6,373,498 6,109,949
To[al net revenues (expenses) (77.691,550) (74,154,891) (53,648,28) (7,325,264) (41,519,182) (41,944,332) (83,366,501) (113916,691) (97,679,081)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes
Sales tax
OtMr taxes
Investment income
(kher geveml revenues
Transfers
Total govennnental activates
easiness-type activities:
Investment income
Miscellaneous
Transfers
Total business-type activities
total primary government
Changes in net assets
Govemmental activities
Business-type activities
Total primary govenment
20,101,086 22,4]2,649 26,674,527 27,074,211 32,597,672 38,882,122 43,388,013 43,319,156 40,489,682
18,812,328 19,612,779 21,421,090 23,600,000 30,91'0,515 32,817,351 29,062,355 26,263,317 23,674,601
24,892,617 14,844,449 25,826,828 73,373,]49 22,218,942 21,400,%1 21,922,357 21,643,366 21,927,677
18,215,420 14,38,650 5,651,048 11,678,930 10,196,710 13,386,88 8,663,014 12,676,922 5,744,616
18,188,635 155,683,692 56,912,431 9,887,989 5,261,428 7,137,140 8,343,946 355,175 8,89Q,689
45,626 45,626 42,876 34,900 122,586 22,618 5,594,536 3,880,091 3,473,571
100,205,712 ZY7,031,845 138,528,800 90,649,279 101,311,855 113,647,064 116,974,231 108,138,027 ]04,200,836
316,569 118,056 20,715 56,485 78,605 167,734 6,740,155 2,090,311 1,785,660
(6,423) 17,907 115,549 329,381 4,088,083 3,809,571 670,170 3,215,264 9,249,893
(45,626) (45,626) (42,876) (34,900) Q22,588) (22,618) (5,594,536) (3,880,091) (3,473,571)
264,520 90,337 93,388 350,966 4,049,100 3,954,687 1,815,789 1,425,484 7,561,982
100,470,232 227,122,182 138,622,188 91,000,245 105,355,955 117,601,751 118,790,020 109,563,511 111,]62,818
21,530,291 154,824,667 85,893,412 82,269,812 64,800,174 76,703,975 35,879,735 (11,652,162) 411,806
1,298,391 (1,857,396) (919,496) 1,405,169 (%3,401) (1,096,556) (456,216) 7,798,982 13,67],931
$ 22,778,682 $ 152,%7,291 $ 89,973,916 $ 83,674,981 $ 63b36,T/3 $ 75,657,419 $ 35,473,519 $ 3,853,180 $ 14,083,737
Tfie City of Owla Visfa implen>ented GASB 34 for fire fiscal year ended tune 30, 2002. Information prior to tl>e implen+entation of GA56 34
is not available. Sea+erfunds were wnrrerted to an enterpdsefund infiscat year 2008.
9-1964
1/13/2011
City of Chula Vista
Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Fiscal Yeaz
2002 2003 2004 2005 2006 2007 2008 2009 2010
General fund:
Reserved S 21,978,726 $ 21,358,332 $ 20,096,238 $ 22,214,965 $ 21,771,010 $22,249,346 $ 22,258,951 $ 20,732,416 $ 19,478,496
Unreserved 34,340,826 28,694,894 ?5,191,333 19,287,213 18,114,943 13,252,911 11,817,191 12,417,105 13,703,304
Total general fund 56,319,552 50,053,226 45,287,571 41,502,178 39,865,953 35,502.257 34,076,142 33,149,521 33,181,800
All other govecnsental funds:
Reserved 73,298,604 106,439,367 98,145,262 98,226,224 64,859,111 65,710,720 26,305,432 33,197,517 63,199,754
Unreserved, reported im
Debt service funds (41,639,285) (26,318,787) (39,676,141) (40,817,036) (92,861,708) (44,404,278) (43,496,817) (46,692,600) (56,280,718)
Capital projects funds 129,796,298 73,977,363 81,760,701 94,472,902 113,659,937 92093,271 79,153,680 71,448,413 59,252,319
Special revenue funds 46,650,553 38,423,739 47,395,612 48,967,258 57,893,321 69,643,662 48,033,398 41,908,820 25,329,765
Total all other govemsental funds $206,106,170 $190,521,682 $181,623,434 $200,869,346 $193,550,667 $178,243,395 $109,995,643 $ 99,862,150 $ 91,501,120
71re City of Grula Vista implemented GASB 34 for fhe fiscal year ended Jwve 30, 2002. Infarmafion prior fo the implementation of GASB 34 is
nat a[~aila6le. Seiner funds were converted to an enterprise fund in fisra! year 2008.
9->1~~ 5
1/13/2011
City of Chula Vista
Changes in Fund Balances of Governmental Funds
Last Nine Fiscal Years
(modified accrual basis of accounting)
Revenues:
Taxes
Licenses and permits
Fines and forfeitures
Investment income
Developer fees
]ntergovemmental
Chazges for services
Other
Total revenues
Expenditures
Current:
General government
Public safety
Public works
Parks and recreation
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Bond issuance cost
Total expenditures
Excess (defidenry) of
revenues over (under)
expenditures
Other financng sources (uses):
Transfers m
Transfers out
Proceeds from long-term debt
Proceeds from bond sale
Payment to esaow agent trust
Bond premium/(bond discount)
Proceeds from sale of capital assets
Total other financing
sources (uses)
Extraordinary item
Forgiveness of debt
Total extraordinary item
Net change N fund balances
Debt service as a percentage of
non<apital expenditures
2002 2003 2004 2005 2006 2007 2008 2009 2010
$ 64,314,781 $ 58,729,862 $72,842,579 $ 61,190,971 $ 66,109,678 $ 92,621,711 $103,543,735 $ 91,770,846 $ 85,955,039
3,464,799 4,596,975 5,533,743 3,946,733 3,441,613 2,870,424 2,767,650 2,041,721 2,274,964
1,412,879 1507,652 1,566,565 1,396,146 1,724,862 2,226,822 2,671,545 3,317,666 3,124,021
20,519,51] 13,679,221 5,113,371 10,199,902 ],946,878 13570,315 10,890,132 10,103,986 --6,299,595
10,639,125 25,613,027 44,032,302 22,625,331 50,551,528 24,058,397 17,318,134 9,252,547 11,700,991
31,307,984 31,866,289 24,600,541 43,647,460 41,847,938 36,385,796 43,962,635 39,497,983 91,965,596
35,194,542 36,994,T78 44,940,117 41,850,292 43,823,866 52,694,312 15,679,753 12,435,955 11,877,763
22,812,525 21,862,659 25,318,879 28,232,712 30,012,125 23,567,613 30,427,119 29,404,421 33,22],203
189,726,152 197,047,483 223,950,117 233,091,547 265,858,508 248,195,390 227,261,103 197,824,925 196,425,172
34,084,001 35,367,904 39,549,614
43,070,016 45,634,970 53,447,068
51,025,428 52,376,940 57,703,733
7,270,041 5,027,661 4,860,965
6,901,814 7,792,119 7,606,262
41,437,695 63,530,242 50,420,966
45,868,944
61,668,963
63,576,777
5,574,607
6,536,917
54,162,012
52,922,011
68,645,444
24,444,271
7,803,561
10,004,164
114,952,136
43,843,021 49,547,974
72,796,523 74,734,225
62,618,040 69,084,386
7,801,802 7,433,055
10,011,458 8,272,341
32,736,956 17,714,432
94,182,313
72,341,413
53,800,872
7,265,099
7,261,003
11,159,711
46,331,377
71,106,06E
50,787,48'
5,375,041
4,657,52:
73,066,661
4,516,942 7,046,207 13,362,073 4,936,247 6,054,616 30,892,802 7,684,493 7,666,525 7,301,362
10,217,834 9,817,072 10,910,758 12,059,211 12,260,244 12,289,908 12,224,973 12,576,939 11,585,816
514,994 34,465 844,584
198,523,471 226,793,113 237,861,461 256,405,678 297,066,469 293,205,504 246,930,364 217,136,459 220,161,377
(6,797,319) (29,745,632) (13,931,344) (23,314,131) (37,227,961) (45,010,114) (19,669,261) (19,313,534) (23,736,204)
44,485,937 43,317,265 26,894,272 84,773,947 55,698,112
(44,357,179) (43,178,867) (26,789,382) (84,676,601) (52,132,246)
_ _ _ 765,000 -
60,145,000 11,320,000 - 37,240,000 21,255,000
- 35,254
162,551 639,050
53,900,545 26,104,914 50502.425
(53,835509) (20,400,837) (46,589,803)
- 665,884
25,760,000 10,264,224 21,625,000
- - (15,110,000)
(505,684) - (579,161)
61,296,934
(57,815,981)
29,355,000
207,372
(16,710,000)
(925,672)
60,273,752 11,458,398 267,441 38,774,650 24,820,866 25,319,152 15,968,301 10,514,345 15,407,453
(5,635,850) - - - -
(5,635,650) - - -
$ 51,476,433 $ 73( 923.064) $ 13,663,903 $ 15,460,519 $ 6( 407,095) $ 19,690,962 $ 3,700,960 $ 8( 799,189) $ 8( 326,751)
9.4% 10.3% 12.9% 6.4% 10.1% 16.5% 8.8% 9.8% 9.6%
The Gty ofOmla Vista implemented GASB 34 for Utefiswl year ended )une 30, 2002. [nfumiarion prior to du inrylententaEon o(GASB 34 is
not aaaila6le. Seurerfunds were converted fo an enterprise fund in fiscal year 2008.
9-1466
1/13/2011
City of Chula Vista
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
City Redevelopment Agency
Fiscal Yeaz Taxable Taxable Total
Ended Less: Assessed Less: Assessed Duect Tax
June 30 Secured Unsecured Exemptions Valuet Secured Unsecured Exemptions Value Rate
2001 $812,610,702 326,184,542 (296,831,109) 6,842,004,135 486,277,371 72,978,911 559,256,282 0.149%
2002 9,948,410,767 442,676,336 (262,190,235) 10,128,896,868 420,217,884 165,288,557 585,506,441 0.194%
2003 11,489,756,820 359,527,956 (303,902,966) 11,545,381,810 578,332,766 92744,520 671,077,266 0.144%
2004 13,186,377,450 367,657,132 (349,913,333) 13,224,121,249 548,945,714 84,234,008 633,179,722 0.149%
2005 15,390,029,359 402,366,184 (426,140,493) 11,366,255,050 617,179,700 82,759,507 699,939,207 0.194%
2006 18,461,902,606 442,863,514 (452,332,435) 18,472,433,685 735,529,197 82,956,175 817,985,322 0.144%
2007 21,254,352,374 562,720,155 (496,479,594) 21,340,592,935 646,124,571 202,760,284 1,048,884,855 0.149%
2008 24,361,647,068 544,113,016 (167,257,524) 24,358,502,560 1,058,205,677 94,614,761 1,152620,436 0.194%
2009 24,861,548,900 565,347,815 (603,.100,966) 24,823,395,749 1,061,746,125 105,702,620 1,167,448,745 0.144%
2010 22,166,954,872 610,945,054 (662,909,923) 22096,990,003 1,094,004,250 131,944,885 1,225,949,135 0.144%
' Includes redevelopment incremental valuation
`Redevelopment Agency exemptions aze included m Gty exempfion data as they are not reported separately
NOTE:
In 1978 the voters of the State of California passed Propositlon 13 which limited property taxes to a total vraximum rate of 1% based upon the assessed value of Hre property
being taxed. Each yeay the assessed value of property maybe imreased by an "inflation factor" (limited to a maximum increase of 2%). With few excepfions, property is
only re-assessed at the time that it ta sold to a new owner. At that point, the new assessed value ta reassessed at the purchase pace of the property sold. The assessed
valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described
above.
Source: County of San Diego Property lax Services
9-h67
1/13/2011
City of Chula Vista
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
Last Ten Fiscal Years
City Direct Rates:
_ City basic rate
Overlapping Rates:
Chula Vista Elementary School
District Bonds
Sweetwater Union High School
District Bonds
Southwestern Community
College Bonds
MWD D/S Remainder of
SDCWA 15019999
CWA South Bay Irrigation
Debt Service
County of San Diego
Total Direct Rate
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
0.144 0.144 0.144 0.144 0.144 0.144 0.144 0.144 0.144 0.144.
0.025 0.024 0.026 0.027 0.028 0.027 0.027 0.020 0.018 0.025
0.025 0.022 0.020 0.018 0.023 0.020 0.047 0.046 0.056
- 0.015 0.013 0.007 0.013 0.015 0.014 0.013 0.013 0.034
0.009 0.008 0.007 0.006 0.006 0.005 0.005 0.005 0.0043 0.0043
0.001 0.001 0.001 0.001 - -
1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000
1.035 1.073 1.069 1.061 1.065 1.070 1.066 1.084 1.081 1.120
NOTE:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00 b fined amount. This L00% is shared by all taxing agencies
for which the subject property resides within. In addifion to the 1.00% fixed amount property owners are charged taxes as a percentage of assessed
property values for the payment of school bonds and other debt service. Overlapping rates may vary by tax rate area. The data listed in this table is
representative of tax rate area 001001.
Source: County of San Diego Property Tax Services
s-~4aa
1/13/2011
City of Chula Vista
Principal Property Tax Payers
Current Yeaz and Nine Years Ago
zolo
Percent of
Total City
Taxable Taxable Taxable
Assessed Assessed Assessed
Taxpayer Value Rank Value Value
San Diego Expressway Limited $ 434,520,000 1
JPB Development 401,928,247 2
Equity Residential 181,729,244 3
GGP-Otay Ranch LP 181,516,663 4
Rohr Inc. 171,999,853 5
Village II of Otay HB S U B 135,600,000 6
Regulo Place Apartments Investor 116,184,212 7
Roman Catholic Bishop of San Diego 79,625,737 8
Shea Homes Ltd Partnership 76,373,000 9
Chula Vista Center LLC 71,74Q345 10
Duke Energy South Bay LLC -
Scripps Health -
Price Rei[ Inc. -
Rancho Del Rey LLC -
Bre Properties [nc. -
Gateway Town Center LP -
United States Olympic Committee -
1.97%
1.82%
0.82%
0.82%
0.78 %
0.61
0.53 %
0.36%
0.35%
0.32%
170,441,618
35,125,714
59,546,806
- 268,612,145
- 70,528,461
- 47,333,541
- 40,416,329
- 37,871,942
- 36,697,000
27,616,283
$ 1,851,217,301 8.38 % 794,229,839
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Source: County of San Diego Property Tax Services
zoos
Percent of
Total City
Taxable
Assessed
Rank Value
2
9
4
1
3
5
6
7
8
10
1.93
0.40%
0.67 %
3.04 %
0.80
0.54%
0.46 %
0.43
0.42%
0.31 %
8.98%
9-469
1/13/2011
City of Chula Vista
Property Tax Levies and Collections
Last Ten Fiscal Years
-" Collected within the
Fiscal Taxes Levied Fiscal Year of Levy Collecfions in _
Year Ended for the Percent Subsequent
June 30 Fiscal Year 1 Amount of Levy Years z
2001 11,254,079 11,069,156 96.36% 125,706 $
2002 12,806,109 12,597,591 98.37% 96,550
2003 14,293,880 14,061,319 98.37% 112,257
2004 16,200,005 15,959,723 98.52% 116,784
2005 18,652,193 18,324,623 98.24% 106,497
2006 72,096,604 21,617,022 97.83% 162,806
2007 25,159,692 24,409,063 97.02% 209,442
2008 28,641,734 27,506,299 96.04% 460,875
2009 29,304,771 28,147,698 96.05% 765,703
2010 26,246,478 25,313,706 96.45 % 538,429
Levy amounts do not include supplemental taxes.
Collection amounts represent delinquen cies collected for all prior years during the current tax year.
Source: County of San Diego Property Tax Services
Total Collections to Date
Amoun[ Percent
of Levy
11,194,861 99.47
12,694,141 99.13%
14,173,576 99.16 %
16,076,507 99.24 %
18,431,120 98.81
21,779,829 98x'7%
24,618,505 97.85
27,967,173 9264
28,913,402 98.66
25,852,135 98.50%
9-t41<0
1/13/2011
City of Chula Vista
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
Pension
Obligation
Bonds Governmental Activities
Tax
Allocation
Bonds loans
Certificates of
Participation
Total
Governmental
Activities
Percentage
of Personal
1
Income
Debt
Per
l
Capita
2001 15,971,354 43,855,000 55,689,108 37,240,000 152,755,462 2.23 % 880
2002 15,456,449 43,330,000 10,397,443 95,245,000 164,428,892 2.34% 905
2003 14,799,025 42,750,000 7,462,105 104,225,000 169,236,530 2.31 % 885
2004 13,985,870 42,125,000 7,315,971 92,920,000 156,346,841 2.06% 779
2005 12,991,962 41,240,000 8,193,481 127,599,251 190,024,698 2.34 % 909
2006 11,795,000 40,295,000 9,811,786 144,240,000 206,141,786 2.45 % 948
2007 10,415,000 41,275,000 9,573,012 139,845,000 201,108,012 2.35 % 898
2008 8,820,000 40,185,000 19,304,342 135,045,000 203,354,342 2.27% 592
2009 7,000,000 45,830,000 18,736,012 130,580,000 202,146,012 2.26 % 874
2010 4,980,000 44,925,000 17,686,144 139,700,000 207,291,144 2.30% 586
' These ratios are calculated using personal income and population for the prior calendar year
Notes: Details regarding the City's outstanding debt can be found in the notes to the
financial statements.
9-h~ 1
1/13/2011
City of Chula Vista
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(In Thousands, except Per Capita)
_.
Fiscal Year
Ended
-June 30 Outstandin
Pension
Obligation
Bonds g General Bonded Debt
Tax
Allocation
Bonds
otal
2001 $ 15,971 $ 43,555 $ 59,826
2002 15,456 43,330 58,786
2003 14,799 42,750 57,549
2004 13,986 42,125 56,111
2005 12,992 41,240 '04,232
2006 11,793 40,295 52,090
2007 10,415 41,275 51,690
2008 8,820 40,185 49,005
2009 7,000 45,830 52,830
2010 4,980 44,925 49,905
Genera] bonded debt is debt payable with governmental fund resources and general
obligarion bonds recorded in enterprise funds (of which, the City has none).
r Assessed value has been used because the actual value of taxable property is not
readily available in the State of California.
Percent of
Assessed
Value 1
Per
Capita
0.68% 345
0.58 % 324
0.50% 301
0.42 % 279
0.35 % 259
0.28 % 239
0.24% 231
0.20 % 215
0.21 % 229
023% 213
s-~a2
1/13/2011
City of Chula Vista
Direct and Overlapping Debt
June 30, 2010
2009-10 Assessed Valuation:
Redevelopment Incremental Valuation:
Adjusted Assessed Valuation:
OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Otay Municipal Water District, LD. No. 27
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
City of Chula Vista Community Facilities Districts
Sweetwater Union High School District Community FacOities Districts
Chula Vista City School District Community FatIlities Districts
City of Chula Vista 1915 Act Bonds
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations
San Diego County Pension Obligations
San Diego County Superintendent of Schools Obligations
Southwestern Community College District Certificates of Participation
Sweetwater Union High School District Certificates of Participation
Chula Vista City School District Certificates of Participation
City of Chula Vista Certificates of Participation
City of Chula Vista Pension Obligations
Otay Municipal Water District Certificates of Participation
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT
Less: Otay Municipal Water District Certificates of Participation
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
$ 22,096,990,003
1,125,949,135
$ 20,871,040,868
Total Debt
6 3U~ 10 % Applicable (11
$ 264,220,000 L152%
7,780,000 99.995
181,958,656 54.155
343,709,415 64.831
78,430,000 87.080
231,885,000 100.
190,875,131 3.978-100.
6,430,000 100.
31,827,351 100.
$ 415,240,000 5.994%
853,514,739 5.994
21,187,500 5.994
1,625,000 54.155
10,480,000 64.831
143,025,000 87.080
139,700,000 100.
4,980,000 100.
61,890,000 63440
City's Share of
Debt 6/30/10
$ 3,043,814
7,779,611
98,539,710
222,830,251
68,296,844
231,885,000
177,508,463
6,430,000
31,827,351
$ 848,141,044
$ 24,889,486
51,159,673
1,269,979
880,019
6,794,289
124,546,170
139,700,000
4,980,000
39,263,016
$ 393,482,632
39,263,016
$ 354,219,616
$ 1,241,623,676 (2)
$ 1,202,360,660
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital
lease obligations. Qualified Zone Academy Bonds are included based on principal due at maturity.
Ratios to 2009-10 Assessed Valuation:
Total Overlapping Tax and Assessment Debt .............................. 3.84
Ratios to Adjusted Assessed Valuation:
Combined Duect Debt ($144,680,000) .................................. 0.69°/a
Gross Combined Total Debt ........................................_........ 5.95
Net Combined Total Debt ....................................................... 5.76 %
STATE SCHOOL BUILDING AID REPAYABLE AS OF 06/30/10: $0
Source: California Municipal Statistics, Inc.
9-~t73
1/13/2011
City of Chula Vista
Legal Debt Margin Information
Last Ten Fiscal Yeazs
Fiscal Year
Assessed valuation
Conversion percentage
Adjusted assessed valuation
Debt limit percentage
Debt limit
Total net debt applicable to limit
Pension obligation bands
Legal debt margin
2001 2002 2003 2004
$ 8,842,004,135 $ 10,128,8%,888 $ 11,545,381,810 $ 13,224,121,249
25 % ZS % 25 % 25
2,210,501,034 2,532,224,222 2,886,345,453 3,306,030,312
15% IS% 15% 15%
331,575,155 379,833,633 432,951,818 495,904,547
15,971,354 15,456,449 14,799,025 13,985,870
$ 315,603,801 $ 364,377,184 $ 418,112,793 $ 481,918,677
Total debt applicable to the lintit
as a percentage of debt limit 4.8 %
The Government Code of the State of Califomia provides for a legal debt limit of
15 % of gross assessed valuation. However, this provision was enacted when
assessed valuation was based upon 25% of market value. Effective with the 1981-82
fiscal year, each parcel is now assessed at 100% of market value (as of the most
recent change in ownership for that parcel). The computations shown above reflect
a conversion of assessed valuation data for each fiscal year from the current full
valuation perspective to the 25% level that was in effect a[ the time that the legal
debt margin was enacted by the State of California for local governments located
within the state.
Source: City Finance Department
County of San Diego Property Tax Services
9-ffi74
4.1% 3.4% 2.8%
1 /13/2011
Fiscal Yeax
2005 2006 2007 2008 2009 2010
$ 15,366,255,050 $ 18,472,433,685 $ 21,340,592,935 $ 24,358,502,560 $ 24,823,395,749 $ 22,096,990,003
25°k 25% 25 % 25 % 25l 25 %
3,841,563,763 4,618,108,421 5,335,148,234 6,089,625,640 6,205,848,937 5,524,247,501
15% 15% 15% 15% 15% 15%
576,234,564 692,716,263 800,272,235 913,443,846 930,877,341 828,637,125
12,991,962 11,795,000 10,415,000 5,820,000 7,000,000 4,980,000
242
602 $
$ 563 680,921,263 $ 789,557,235 $ 904,623,846 $ 923,877,341 $ 823,657,125
,
,
2.3 % 1.7 % 1.3 % 1.0 % 0.8 % 0.6 %
9-1'35
1/13/2011
City of Chula Vista
Pledged-Revenue Coverage
Last Ten Fiscal Years
Tax Allocation Bonds
Fiscal Year
Ended Tax Debt Service
June 30 Increment Principal Interest Coverage
2001 7,590,243 400,000 2,477,730 2.64
2002 -- 7,032,187 525,000 2,980,373 2.01
2003 7,822,428 580,000 2,943,058 222
2004 10,317,573 625,000 2,902,851 2.92
2005 8,939,444 885,000 2,855,288 2.39
2006 10,404,880 945,000 2,797,726 2.78
2007 11,935,618 995,000 2,735,150 3.20
2008 13,793,329 1,090,000 1,965,103 4.51
2009 13,781,683 870,000 1,728,722 5.30
2010 13,884,637 905,000 2,070,381 4.67
Note: Details regarding the city's outstanding debt can be found in the notes to
the financial statements.
9-1G~7 6
1/13/2011
9-~~7
1/13/2011
City of Chula Vista
Demographic and Economic Statistics
Last Ten Calendar Years
Pct. of S.D. P<t. Change
Total County from Previous Median
Year Population Population Year Age
2000 173,556 6.2 % ~.7 % 33.0
2001 181,613 6.3 % 4.6 % 32.8
2002 191,220 6.5 % 5.3 % 32.8
2003 200,798 6.8% 5.0% 32.9
2004 208,997 6.9 % 4.1 % 33.0
2005 217,512 7.2 % 4.1 % 33.2
2006 224,006 7.3 % 3.0 % 33.4
2007 227,850 7.4 % 1.7 % 33.4
2008 231,157 7.4 % 1.5 % 33.3
2009 234,011 7.3% 1.2% 33.3
Sources: SANDAG, Current Estimates (Aug. 2010)
California Department of Finance
Cal$ornia Employment Development Department
U.S. Census Bureau, Census 2000 and American Community Survey
U.S. Bureau of Economic Analysis
Note: Dollar values are inflation-adjusted to 2009
Avg.
Household
Size
2.99
3.00
2.99
3.09
3.03
3.04
3.08
3.12
3.20
3.26
.9-~~8
1/13/2011
Educational Attainment
% Bachelor's -__.
% High School Degree or Pct. Below Unemployment Personal Income
Graduate Higher Poverty Rate (In Thousands)
Per
Capita
Personal
Inwme
79.0% 22.0% 11.0% 4.6% 6,863,700 39,550
n/a n/a n/a 4.9% 7,023,700 38,670
n/a n/a n/a 6.1% 7,315,600 38,260
n/a n/a n/a 6.1% 7,592,400 37,810
n/a n/a n/a 5.6% 8,106,500 38,790
79,0 % 25.0 % 9.1 % 5.1% 8,418,000 38,700
82.0 % 24.0 % 11.0 % 4.7 % 8,562,800 38,230
80.0 % 25.0 % 9.1 % 5.3 % 8,956,000 39,310
81.0% 26.0% 8.5% 7.0% 8,962,100 38,770
80.0% 26.0% 11.5% 11.3% 8,999,500 38,460
9-~79
1/13/2011
City of Chula Vista
Principal Employers
Current Year and Nine Years Ago
zolo
Employer
Sweetwater Union High School District
Chula Vista Elementary School District
Rohr Inc/Goodrich Aerospace
Sharp Chula Vista Medical Center
Southwestern Community College
City of Chula Vista
Scripps Mexcy Hospital Chula Vista
Wal-Mart
Vons
Target
' 2001 data is not available
Percent of
Number of Total
Employees Employment
4,364 10.19%
2,616 6.11
1,903 4.44 %
1,&10 4.23
zoos'
Percent of
Number of Total
Employees Employment
n/a n/a
n/a n/a
n/a n/a
n/a n/a
1,682 2.84% n/a n/a
1,215 3.93% n/a n/a
993 2.32% n/a n/a
950 2.22°k n/a n/a
621 1.45 % n/a n/a
604 1.41% n/a n/a
"Total Employment" as used above represents the total employment of all employers located
within City limits.
Source: State Employment Development Department
City Finance Department
Sweetwater Union High School District Human Resources Department
Chula Vista Elementary School District Human Resources Department
Southwestern Community College Human Resources Department
9'x580
1/13/2011
City of Chula Vista
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Full-Time and Part-time Employees as of June 30
Function 2001 t 20021 2003 2004 z 2005 2006 2007 2008 2009 2010
General government 105 98 225 465 193 380 324 302 272 273
Public safety 327 362 413 480 528 518 548 504 476 468
Public works/engr 249 269 295 249 335 198 237 188 181 175
Parks and recreation 529 559 162 - 175 230 242 223 169 164
Library - - 216 182 217 252 227 196 189 73
Planning and building 84 92 92 99 91 97 83 68 63 62
Total 1,294 1,380 1,403 1,475 1,539 1,675 1,661 1,481 1,350 1,215
' Library employee count included in Parks and Recreation count
~ Parks and Recreation employee count included ¢r General Government count
Source: City Finance Department
9-A~~ 1
1/13/2011
City of Chula Vista
Operating Indicators
by Function
Last Ten Fiscal Years
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Police:
Citizen-initiated calls for service 73,977 71,859 71,268 71,000 74,106 73,075 74,277 74,192 70,051 68,601
Fire:
Number of emergency calls' 7,128 7,626 8,088 8,420 9,907 n/a 14,853 14,548 14,983 11,490
Inspecfions n/a n/a n/a n/a n/a 1,780 2,119 n/a 3,676 2,898
Public works:
Street resurfacing/maintenance ' 307,620 151,577 218,632 252,789 142,864 230,.198 157,903 77,507 lOS,745 84,276
(square feet)
Parks and recreation:
Number of recreation classes 1,136 1,126 2,261 1,819 1,709 1,821 2,231 2,575 2,149 2,301
Number of facility rentals 762 1,096 897 402 680 610 855 1,217 969 1,175
Library:
Circulation 1,192,670 1,268,587 1,308,148 1,308,709 1,414,295 1,467,799 1,344,115 1,265,720 1,160,139 985,157
Attendance 1,209,986 1,009,061 1,044,755 1,070,560 1,121,119 1,170,168 1,148,024 1,296,245 820,243 605,979
Sewer:
New corrections 2,314 2,464 2,652 2,480 1,934 488 529 165 468 469
Average daily sewage treatment 15.0 15.2 16.3 15.8 17.0 16.9 17.0 16.8 16.5 16.2
(millions of gallons)
~ Figuxe Eor 2005 represents the calendar year instead of fiscal year.
'Excludes filling of potholes and crack sealing.
Note: Data is not available for the fiscal years marked as n/a.
Source: City of Chula Vista
9-1~&2
1/13/2011
City of Chula Vista
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Police
Stations 1 1 1 1 1 1 1 1 1 1
Fire:
Fire stations 6 7 7 7 8 9 9 9 9 9
Public works:
Streets (miles) n/a 356.2 358.8 370.9 373.8 387.3 403.3 416.9 421.0 429.5
Streetlights n/a 7,107 7,147 8,047 8,368 8,501 8,953 9,013 9,026 9,052
Traffic signals 152 161 170 188 199 220 238 253 267 267
Parks and recreation:
Community parks 6 6 6 6 6 9 9 9 9 9
Recreation facilities 8 8 9 9 9 12 12 12 11 11
Library:
Libraries 2 2 2 2 2 2 2 2 2 2
Sewer:
Sewer pipes (miles) n/a 338.6 428.2 448.1 455.8 471.3 484.2 493.8 496.5 505.0
Storm drains (mIles) n/a 173.0 182.3 191.9 219.9 228.6 234.0 244.7 245.3 248.9
Maximum daily treatment capacity 19.8 19.8 19.8 19.8 20.9 20.9 20.9 20.9 20.9 20.9
(mIllions of gallons)
Note: Data is not available for the fiscal years marked as n/a
Source: City of Chula Vista
9-~83
1/13/2011
9-~@4
1/13/2011
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certafted Public Accountants
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN
AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and Members of City CouncIl
of the City of Chula Vista
Chula Vista, California
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the
City of Chula Vista, California (City), as of and for the year ended June 30, 2010, which
collectively comprise the City's basic financial; and have issued our report thereon dated January
12, 2011. We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reportin¢
In planning and performing our audit, we considered the City's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our
opinion on the basic financial statements, but not for the purpose of expressing an opinion on
the effectiveness of the City's internal control over financial reporting. Accordingly, we do not
express an opinion on the effectiveness's of the City's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to
prevent or detect misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the City's financial statements will not be prevented, or detected and
corrected on a timely basis.
Our. consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies
in the intemal control over financial reporting that might be deficiencies, significant
deficiencies, or material weaknesses. We did not identify any deficiencies in internal control
over financial reporting that we consider to be material weaknesses, as defined above.
anvw. c-ICpa.com
9-185
1/13/2011
To the Honorable Mayor and Members of City Council
of the City of Chula Vista
Chula Vista, California
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Cites basic financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a duect and
material effect on the determination of basic financial statement amounts. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly we
do not express such an opinion. The results of our tests disclosed no instance of noncompliance
or other matters that are required to be reported under Government Audifing Standards.
This report is intended solely for the information and use of the City Council, management,
federal awarding agencies, and pass-through entities and is not intended to be and should not
be used by anyone other than these specified parties. However, this report is a matter of public
record and its distribution is not limited.
Cap/oricci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
January 12, 2011
9-~6
REDEVELOPMENT AGENCY.
BASIC FINANCIAL STATEMENTS
INDEPENDENT AUDITOR'S REPORTS
~~
9-188
Redevelopment Agency of the City of Chula Vista
Basic Financial Statements
For the year ended June 30, 2010
Table of Contents
Page
FINANCIAL SECTION
Independent Auditors' Report ..........................................................................................................................1
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Assets ..........................................................................................................................6
Statement of Activities and Changes in Net Assets ............................................................................7
Fund Financial Statements:
Governmental Funds:
Balance Sheet ...................................................................................................................................10
Reconciliation of the Governmental Funds Balance Sheet to the Government-wide
Statement of Net Assets .............................................................................................................13
Statement of Revenues, Expenditures and Changes in Fund Balances ..................................14
Reconciliation of the Governmental Statement of Revenues, Expenditures
and Changes in Fund Balances to the Government-Wide Statement of Activities
and Changes in Net Assets ........................................................................................................16
Notes to the Basic Financial Statements ...................................................................................................17
Required Supplementary Information:
Budgetary Information .........................................................................................................................40
Budget Comparison Schedules
Low & Mod Income Housing Special Revenue Fund ...............................................................41
RDA Housing Program Special Revenue Fund ..........................................................................42
Supplementary Information:
Statement of Revenues, Expenditures and Changes in
Fund Balances -Budget and Actual Schedules:
Bayfront/Town Centre I Debt Service Fund ........................................................................45
Town Centre II Otay Valley Southwest Merged Projects Debt Service Fund .................46
Report on Compliance and Other Matters and on Internal Control over
Financial Reporting and on Compliance and Other Matters Based
on an Audit of Basic Financial Statements Performed in Accordance
with Government Auditing Standards .................................................................................................... 47
9-189
9-190
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista -
Chula Vista, California
We have audited the accompanying financial statements of the government activities and each
major fund of the Redevelopment Agency of the City of Chula Vista (Agency), a component
unit of the City of Chula Vista, California (City), as of and for the year ended June 30, 2010,
which collectively comprise the Agency's basic financial statements as listed in the foregoing
table of contents. These financial statements are the responsibility of the Agency's management.
Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
consideration of internal control over financial reporting as a basis for designing audit
procedures that are appropriate under the circumstances but not for the purpose of expressing
an opinion on the effectiveness of the Agency's internal control over financial reporting.
Accordingly, we express no such opinion. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities and each major fund of the
Agency as of June 30, 2010, and the respective changes in financial position for the fiscal year
then ended in conformity with accounting principles generally accepted in the United States of
America.
In accordance with Government Auditing Standards, we have also issued our report dated
December 22, 2010, on our consideration of the Agency's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing,
and not to provide an opinion on the internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
omwc-Icpa.com
9-191
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
Page 2
The Agency has not presented the Management's Discussion and Analysis that the
Governmental Accounting Standards Board has determined is necessary to supplement,
although not required to be part of the basic financial statements.
The accompanying Required Supplementary Information, such as budgetary information, as
listed in the table of contents, is not a required part of the basic financial statements, but is
supplementary information required by the Governmental Accounting Standards Board. We
have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the Required
Supplementary Information. However, we did not audit the information and express no
opinion on the Required Supplementary Information.
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Agency's basic financial statements. The accompanying
Supplementary Information is presented for purpose of additional analysis and is not a
required part of the basic financial statements. The Supplementary Information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 22, 2010
9-h92
BASIC FINANCIAL STATEMENTS
9-t~93
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9-~94
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
9-~95
Redevelopment Agency of the City of Chula Vista
Statement of Net Assets
June 30, 2010
ASSETS
Current assets:
Cash and investments
Receivables:
Taxes
Interest
Other
Due from City of Chula Vista
Total current assets
Noncurrent assets:
Restricted cash and investments:
Held by City
Held by fiscal agents
Loans receivable
Deferred charges, net
Capita] Assets:
Nondepreciable assets
Depreciable assets, net
Total capital assets
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable and acemed liabilities
Interest payable
Long-term debt -due within one year
Total current liabilities
Long-term liabilities:
Long-teen debt -due in more than a year
Total long-term liabilities
Total liabilities
NET ASSETS
Investments in capita] assets
Restricted for:
Capital projects
Debt service
Community development
Total restricted
Unrestricted (deficit)
Total net assets (deficit)
Governmental
Activities
$ 6,458,980
887,011
28,107
676
733,302
8,108,076
4,629,509
7,227,852
19,882,6.18
1,193,066
9,790,977
1,370,823
11,161,800
44,094,885
52,202,961
2,631,776
595,039
1,110,000
4,336,815
68,225,137
68,225,137
72,561,952
11,161,800
8,880,935
3,578,585
14,181,174
26,640,694
(58,161,485)
$ (20,358,991)
See accompanying notes to basic financial statements. y [~ C
9- Pr7 U
Redevelopment Agency of the City of Chula vista
Statement of Activities and Changes in Net Assets
For the year ended June 30, 2010
Functions/Programs Expenses
Primary government:
Govemmental activities:
General government $ 11,919,913
Interest on long-term debt 3,356,469
Total governmental activitles
Net (Expense)
Revenue and
Changes in
Program Revenues Net Assets
Operating Capital Total
Charges for Grants and Grants and Program Govemmental
Services Contributions Contributions Revenues Activities
$ - $ - $ - $
$ 15,276,382 $ - $ - $ - $ -
General revenues:
Taxes:
Propertytaxes
Investment earnings
Miscellaneous
Transfers to City of Chula Vista
Total general revenues and transfers
Change in net assets
Net assets (deficit) - beginning of yeaz
Net assets (deficit) - end of yeaz
$ (11,919,913)
(3,%6,469)
(15,276,382)
15,193,533
748,206
789,416
(1,359,558)
15,371,597
95,215
(20,414,206)
$ (20,358,991)
See attompanying notes to basic financial statements.
9-T~97
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9-~98
FUND FINANCIAL STATEMENTS
9-~99
Redevelopment Agency of the City of Chula Vista
Balance Sheet
Governmental Funds
June 30, 2010
Funds
ASSETS
Cash and investments
Receivables:
Taxes
Interest
Loans
Other
Due from City of Chula Vista
Advances to other funds
Restricted cash and investments:
Held by City
Held by fiscal agent
Total assets
LIABILITIES AND
FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Advances from other funds
Deferzed revenue
Total liabilities
Fund Balances:
Fund Balances:
Reserved:
Encumbrances
Long-term receivables and advances
Debt service
Total reserved
Unreserved:
Designated
Undesignated
Total unreserved
Total fund balances
Total liabilities and fund balances
See accompanying notes to basic financial statements.
Low & Mod RDA Housing
Income Housing Program
Special Revenue Special Revenue
Bayfront/
Town Centre I
Debt service
Town Centre II
Otay Valley
Southwest
Merged Projects
Debt Service
$ 3,110,992 $ - $ 2,325 $ 1,555
18,163 - 262 725
19,882,658 - - -
183 - - -
733,302 - - -
4,164,850 - - -
4,629,509 - - -
- - 2,032,906 1,540,812
$ 32,539,657 $ $ 2,035,493 $ 1,543,092
$ 11,792
18,346,691
18,358,483
7,248
5,700,817
5,708,065
- $ $
- 1,384,321
- 1,384,321
7,734,094
7,734,094
2,035,493 1,543,092
2,035,493 1643,092
8,473,109 - (1,384,321) (7,734,094)
8,473,109 - (1,384,321) (7,734,094)
14,181,174 - 651,172 (6,191,002)
$ 32,539,657 $ - $ 2,035,493 $ 1,543,092
9-~~
Major Funds
Town Centre II
Otay Valley
Bayfront/ Southwest
Town Centre I Merged
Capital Projects Capital Projects Total
$ 581,932 $ 2,762,176 $ 6,458,980
44,112 842,899 887,011
97 8,860 28,107
_ - 19,882,658
- 493 676
_ - 733,302
4,953,565 - 9,118,415
_ - 4,629,509
- 3,654,134 7,227,852
$ 5,579,706 $ 7,268,562 $ 48,966,510
$ 424,560 $
1,347,349
1,771,909
2,195,424 $ 2,631,776
- 9,118,415
- 19,694,040
2,195,424 31,444,231
31,639 246,656 285,543
3,606,216 - 9,307,033
_ - 3,578,585
3,637,855 246,656 13,171,161
169,942 4,826,482 4,996,424
_ - (645,306)
169,942 4,826,482 4,351,118
3,807,797 5,073,138 17,522,279
$ 5,579,706 $ 7,268,562 $ 48,966,510
9-~
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9-gfl2
Redevelopment Agency of the City of Chula Vista
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Assets
June 30, 2010
Total Fund Balances -Total Governmental Funds
Amounts reported for governmental activities in the Statement of Net Assets were different because:
Deferred charges, such as bonds issuance costs from issuing debt, were expenditures in the fund financial
statements but were deferred and subject to capitalization and amortization on the Government-Wide
Statement of Net Assets.
Capital assets used in governmental activities were not financial resources and therefore were not
reported in governmental funds.
Nondepreciable
Depreciable, net
Total capital assets, net
Interest payable on long-term debt did not require current financial resources. Therefore, interest payable
was not reported as a liabIlity in Governmental Funds Balance Sheet.
Long-teen liabilities were not due and payable in the current period. Therefore, were not reported in the
Govenunental Funds Balance Sheet. The long-term liabilities were adjusted as follows:
Long-term liabilities -due within one year
Long-term liabIlities -due in more than one year
Total long-tens liabilities
Deferred revenues recorded in governmental fund financial statements resulting from activities in which
revenues were earned but funds were not available were recognized as revenues in the Government-Wide
Financial Statements.
Net Assets (deficit) of Governmental Activities
See accompanying notes to basic financial statements.
$ 17,522,279
1,193,066
9,790,977
1,370,823
11,161,800
(595,039)
(1,110,000)
(68,225,137)
(69,335,137)
19,694,040
$ (20,358,991)
9-7D3
Redevelopment Agency of the City of Chula Vista
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the year ended June 30, 2010
REVENUES:
Taxes
Use of money and property
Other
Total revenues
EXPENDITURES:
Current:
General government
Capital outlay
Debt Service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds from advances from City of Chula Vista
Repayment of advances from City of Chula Vista
Transfers to City of Chula Vista
Transfers in
Transfers out
Total other financing sources
NET CHANGE IN FUND BALANCES
FUND BALANCE (DEFICIT):
Beginning of year
End of year
See accompanying notes to basic financial statements.
Major Funds
_ _ Town Centre II
Otay Valley
Low & Mod RDA Housing BayEront/ Southwest
Income Housing Program Town Centre I Merged Projects
Special Revenue Specia] Revenue Debt service Debt Service
$ - $ - $ - $ -
172,372 10,888 98,362 2,994
1,163 49 384 314
173,535 10,937 98,746 3,308
470,183
470,183
(296,648)
222 5,382 2,471
- 996,585 68,415
- 1,323,805 1,930,681
222 2,325,772 2,001,571
10,715 (2,227,026) (1,998,263)
- - 175,718 696,462
_ - (472,955) (2,309,887)
(115,569) (116,603) - -
8,125,866 65 1,724,390 2,809,733
(65) (5,348,938) (1,336,430) (2,824,264)
8,010,232 (5,465,476) 90,723 (1,627,956)
7,713,584 (5,454,761) (2,136,303) (3,626,219)
6,467,590 5,454,761 2,787,475 (2,564,783)
$ 14,181,174 $ - $ 651,172 $ (6,191,002)
9-Y~4
Major Funds
Town Centre II
Otay Valley
Bayfront/ Southwest
Town Centre I Merged
Capital Projects Capital Projects
Total
$ 4,580,034 $ 10,613,499 $ 15,193,533
11,277 55,750 351,643
4,928 782,578 789,416
4,596,239 11,451,827 16,334,592
2,242,425 7,539,229 10,259,916
93,887 1518,386 1,612,273
- - 1,065,000
- - 3,254,486
2,336,312 9,057,615 16,191,675
2,259,927 2,394,212 142,917
- - 872,180
- - (2,782,842)
- (1,127,386) (1,359,558)
1,336,430 2,824,264 16,820,748
(2,606,870) (4,704,181) (16,820,748)
(1,270,440) (3,007,303) (3,270,220)
989,487 (613,091) (3,127,303)
2,818,310 5,686,229 20,649,582
$ 3,807,797 $ 5,073,138 $ 17,522,279
9-8~5
Redevelopment Agency of the City of Chula Vista
Reconciliation of the Governmental Statement of Revenues, Expenditures, and Changes
in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets
June 30, 2010
Net Change in Fund Balances -Total Governmental Funds $ (3,127,303)
Amounts reported for governmental activities in the Statement of Activities were different because:
Depreciation expense on capital assets was reported m the Government-Wide Statement of Activities and
Changes th Net Assets, but they did not require the use of current financial resources. Therefore,
depreciaflon expense was not reported as expenditures in the Governmental Funds. (47,724)
The issuance of long-term liabilities provided current financial resources to governmental funds, but
issuing debt increased long-term liabilities m the Government-Wide Statement of Net Assets. Repayment
of long-term liabilities was an expenditures in governmental funds, but the repayment reduced long-term
liabilities in the Government-Wide Statement of Net Assets.
Principal payment of long-term debt 1,065,000
Proceeds from advances from City of Chula Vista (872,180)
Repayment of advances from City of Chula Vista 2,782,842
Amortization expense was reported in the Government-Wide Statement of Acfivities and Changes in Net
Assets, but did not require the use of current financial resources. Therefore, amortization expense was not
reported as an expenditure in the Governmental Funds.
Bond discount (~•~4)
Deferred charges (58,732)
Interest earned on long-term receivables did not provide current financial resources and was not reported
as revenue in the Governmental Funds. 396,563
Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and
Changes in Net Assets, but it did not require the use of current financial resources. This amount
represented the change in accrued interest from prior year. 1,523
Change in Net Assets of Governmental Activities $ 95,215
See accompanying notes to basic financial statements.
9-g®6
NOTES TO BASIC
FINANCIAL STATEMENTS
9-?~7
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the Redevelopment Agency of the City of Chula Vista (Agency), a
component unit of the City of Chula Vista, California, (City) have been prepared in conformity with
generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental
Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles. The more significant of the City's accounting policies are
described below.
A. Reporting Entity
The Agency is considered a blended component unit of the City. The Agency was created by the City of
Chula Vista City Council (City Council) in October 1972. The City Manager acts as the Agency's
Executive Director and the City Council acts as the governing commission, which exerts significant
influence over its operations. The primary purpose of the Agency is to eliminate blighted areas by
encouraging the development of residential, commercial, industrial, recreational and public facilities.
The Bayfront/Town Centre I Project encompasses approximately 775 acres; its general objective is to
redevelop the Bayfront area and the central business district. The goal of the Town Centre II Project,
which consists of approximately 212.5 acres in the central area of Chula Vista, is to revitalize the area
into a principal regional shopping center. The Otay Valley Road Project area, comprising
approximately 770 acres, was created to establish and upgrade infrastructure capital improvements for
the promotion of industrial development. The Southwest Project area, comprising approximately 1,100
acres, was created to upgrade the commercial, industrial, residential properties and rights-of-way at a
more rapid pace than would occur without a redevelopment plan.
Funds for redevelopment projects are provided from various sources, including incremental property
tax revenues, tax allocation bonds, and advances from the City.
B. Basis of Accounting and Measurement Focus
The accounts of the Agency are organized on the basis of funds, each of which is considered a separate
accounting entity with its own self-balancing accounts that comprise its assets, liabilities, fund balance,
revenues and expenditures. These funds are established for the purpose of carrying out specific
activities or certain objectives in accordance wide specific regulations, restrictions or limitations.
Government resources are allocated to and accounted for in individual funds based upon the purpose
for which they are to be spent and the means by which spending activities are controlled.
Government -Wide Financial Statements
The Agency's Government-Wide Financial Statements include a Statement of Net Assets and a
Statement of Activities and Changes in Net Assets. These statements present summaries of
governmental activities for the Agency accompanied by a total column. The Agency does not have any
business-type activities, therefore only governmental activities are reported.
9-Y>D8
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Government -Wide Financial Statements, Continued
These basic financial statements are presented on an "economic resources" measurement focus and the
accrual basis of accounting. Accordingly, all of the Agency's assets and liabilities, including capital
assets and long-term liabilities, are included in the accompanying Statement of Net Assets. The
Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues
are recognized in the period in which they are earned while expenses are recognized in the period in
which the liability is incurred.
Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund
activities, payables and receivables. The following interfund activities have been eliminated:
Advances to and from other funds
Transfers in and out
Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues,
Expenditures and Changes in Fund Balances.
All governmental funds are accounted for on a spending or "current financial resources" measurement
focus and the modified accrual basis of accounting. Accordingly, only current assets and current
liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in
Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures
and other financing uses) in net current assets. Under the modified accrual basis of accounting,
revenues are recognized in the accounting period in which they become both measurable and available
to finance expenditures of the current period.
Revenues are recorded when received in cash, except that revenues subject to accrual (generally 60 days
after year-end) are recognized when due. The primary revenue sources, which have been treated as
susceptible to accrual by the Agency, are increment property taxes, intergovernmental revenues, other
taxes, interest revenue, rental revenue and certain charges for services. Expenditures are recorded in the
accounting period in which the related fund liability is incurred.
Deferred revenues arise when potential revenues do not meet both the "measurable' and "available"
criteria for recognition in the current period. Deferred revenues also arise when the government
receives resources before it has a legal claim to them, as when grant monies are received prior to
incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are
met or when the government has a legal claim to the resources, the deferred revenue is removed from
the balance sheet and revenue is recognized.
The reconciliations of the Fund Financial Statements to the Government-Wide Financial Statements are
provided to explain the differences created by the integrated approach of GASB Statement No. 34.
s-ass
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
B. Basis of Accounting and Measurement Focus, Continued
Governmental Fund Financial Statements, Continued
The Agency reports the following major governmental funds:
Low & Moderate Income Housing Special Revenue Fund is used to account for the 20% portion of
the Agency's tax increment revenue that is required to be set aside for low and moderate income
housing and related expenditures.
RDA Housing Pro rg am Special Revenue Fund is used to account for housing and related
expenditures other than those in the Low & Moderate Income Housing fund. This fund was closed
out in 2010.
Bavfront/Town Centre I Debt Service Fund is used to account for the repayment of interest and
principal on long-term debt, and the accumulation of resources thereof associated with the Bayfront
and Town Centre I Project Areas.
Town Centre II/Ota~y/Southwest Mer eg d Projects Debt Service Fund is used to account for
the payment of interest and principal on long-term debt, and the accumulation of resources thereof
associated with the Town Centre II, Otay Valley Road, and Southwest Merged Project Areas.
Bavfront/Town Centre I Capital Projects Fund is used to account for the financial resources used in
developing the Bayfront and Town Centre I Project Areas.
Town Centre II/Otay Valley/Southwest Merged Projects Capital Projects Fund is used to account
for the financial resources used in developing the Town Centre II, Otay Valley Road, and Southwest
Merged Project Areas.
C. Cash and Investments
The Agency maintains its cash with the City, which pools cash resources from all funds in order to
facilitate the management of cash and achieve the goal of obtaining the highest yield with the greatest
safety and least risk. Cash in excess of current requirements is invested in various interest-bearing
accounts and other investments for varying terms.
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments
and for External Investment Pools, highly liquid money market investments with maturities of one year or
less at time of purchase are stated at amortized cost. All other investments are stated at fair value.
Market value is used as fair value for those securities for which market quotations are readily available.
The City participates in an investment pool managed by the State of California titled Local Agency
Investment Fund (LAIF) which has invested a portion of the pooled funds in structured notes and asset-
backed securities. LAIF determines fair value on its investment portfolio based on market quotations
for those securities where market quotations are readily available and based on amortized cost or best
estimate for those securities where market value is not readily available. LAIF's investments are subject
to credit risk with the full faith and credit of the State of California collateralizing these investments. In
addition, these investments aze subject to market risk as to change in interest rates.
9-$010
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
C. Cash and Investments, Continued
Cash equivalents are considered amounts in demand deposits and short-term investments with a
maturity date within three months of the date acquired by the Agency and are presented as "Cash and
Investments" in the accompanying basic financial statements.
In accordance with GASB Statement No. 40, Deposit and Investment Risk Disclosures (an amendment of
GASB Statement No.3), certain disclosure requirements, if applicable, for deposit and investment risks
are specified for the following areas:
~ Interest Rate Risk
Credit Risk
• Overall
• Custodial Credit Risk
• Concentration of Credit Risk
Foreign Currency Risk
D. Cash and Investments with Fiscal Agents
Cash and investments with fiscal agents are restricted for the redemption of bonded debt and for
acquisition and construction of capital projects.
E. Capital Assets
The Agency's assets are capitalized at historical cost or estimated historical cost. Agency policy has set
the capitalization threshold for reporting capital assets at $5,000. Gifts or contributions of capital assets
are recorded at fair market value when received. Depreciation is recorded on a straight-line basis over
the useful lives of the assets as follows:
Buildings 25 years
Improvements other than buildings 15 years
Machinery and equipment 5-20 years
The Agency had no infrastructure assets included in capital assets at June 30, 2010.
E Long-Term Debt _
Government-Wide Financial Statements
Long-term debt and other financed obligations are reported as liabilities in the Government-Wide
Financial Statements.
Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the
bonds using the effective interest method. Bonds payable are reported net of applicable premium or
discount.
9-8il 1
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued
F. Long-Term Debt, Continued
Fund Financial Statements
The Fund Financial Statements do not present long-term debt. Consequently, long-term debt is shown
as a reconciling item in the Reconciliation of the Governmental Funds Balance Sheet to the Government-
Wide Statement of Net Assets.
G. Property Tax Revenues
Incremental property tax revenues represent property taxes in each project area arising from increased
assessed valuations over base valuations established at the inception of the project area. Incremental
property taxes from each project area accrue to the Agency until all liabilities and commitments of the
project area have been repaid (including cumulative funds provided or committed by the Agency).
After all such indebtedness has been repaid; all property taxes from the project area revert back to the
various taxing authorities.
Property taxes are levied on March 1 and are payable in two installments: November 1 and February 1
of each year. Property taxes become delinquent on December 10 and April 10, for the first and second
installments, respectively. The lien date is March 1. The County of San Diego, California (County) bIlls
and collects property taxes and remits them to the Agency according to a payment schedule established
by the County.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and
can increase the property tax rate no more than 2% per year. The District receives a share of this basic
tax levy proportionate to what it received during the years 1976-1978.
Property tax revenues are recognized in the fiscal year for which the taxes have been levied
No allowance for doubtful accounts was considered necessary.
H. Low and Moderate Income Housing
The California Health and Safety Code requires Agency project areas to deposit 20% of allocated
incremental property tax revenues (or 20% of net bond proceeds plus 20% of tax incremental revenues
in excess of debt service payments on the bond) into a Low and Moderate Income Housing Fund. This
money is restricted for the purpose of increasing or improving the community's supply of low and
moderate income housing. The Agency accounts for these revenues in a special revenue fund.
9-~] 2
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued -
I. Net Assets
In the Government-Wide Financial Statements, net assets are classified in the following categories:
Invested in Capital Assets -This amount consists of capital assets net of accumulated depreciation.
Restricted Net Assets -This amount is restricted by external creditors, grantors, contributors, or laws
or regulations imposed by other governments.
Unrestricted Net Assets -This amount represents the remaining net assets that do not meet the
definition of "invested in capital assets, net of related debt" or "restricted net assets"
J. Fund Balance
In the Fund Financial Statements, reservations of fund balance of governmental funds are created to
either satisfy legal covenants, including State laws, that require a portion of the fund balance be
segregated or identify the portion of the fund balance not available for future expenditures.
K. Use of Restricted/Llnrestricted Net Assets
When an expense is incurred for purposes for which both restricted and unrestricted resources are
available, the Agency's policy is to apply restricted resources first.
L. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenues and expenses. Actual results could differ from those estimates.
2. CASH AND INVESTMENTS
The following is a summary of pooled cash and investments and restricted cash and investments at June 30,
2010:
Local Agency Investment Fund $ 6,458,980
Restricted cash and investments
Held by Agency 4,629,509
Held by fiscal agent 7,227,852
Total cash and investments $ 18,316,341
9-213
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH AND INVESTMENTS, Continued
The Agency has pooled its cash and investments with the City in order to achieve a higher return on
investment. Certain restricted funds, which are held and invested by independent outside custodians
through contractual agreements, are not pooled. These restricted funds include cash with fiscal agents.
Where applicable, the Agency follows the City's investment policy.
Cash and investments consisted of the following at June 30, 2010: _
Cash:
Demand deposits with finandal institufion $ 4,629,509
Total cash 4,629,509
Investments:
Local Agency Investment Fund 6,458,980
Investments held by fiscal agent:
Money market fund 2,032,906
US Treasury obligations 5,194,946
Total investments 13,686,832
Total cash and investments $ 18,316,341
Investments Authorized by the CitS/s Investment Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also identifies certain
provisions of the California Government Code (or the City's investment policy, where more restrictive) that
address interest rate risk, credit risk, and concentration of credit risk. This table does not address
investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements
of the City, rather than the general provisions of the Califomia Government Code or the City's investment
policy.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio* One Issuer
Bankers'Acceptances 180 days 40% 30%
Negotiable Certficates of Deposits 5 years 30% None
Commercial Paper 270 days 25% 10%
State and Local Agency Bond Issues 5 years None None
U.S. Treasury Obhgafions 5 years None None
U.S. Agency Securities 5 yeazs None None
Repurchase Agreement 90 days None None
Reverse-Purchase Agreements 90 days 20 % None
Medium-Term Corporate Notes 5 yeazs 30 % None
Time Certificates of Deposits 3 years None None
Money Market Funds 5 years 15 % None
Local Agency Investment Fund (LAIF) N/A None $40 MBlion**
* Excluding amounts held by bond trustee that aze not subject to California Government Code restriction.
** Maxium is $40 million per account.
9-~~ 4
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
2. CASH AND INVESTMENTS, Continued
Investments Authorized by Debt Agreement
Investment of debt proceeds held by bond trustees are governed by provisions of the debt agreement,
rather than the general provisions of the California Government Code or the City's investment policy. The
table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk,
and concentration of credit risk. _.
Maximum Maximum
Authorized Maximum Percentage of Investment in
Investment Type Maturity Portfolio` One Issuer
U.S. Treasury Obligations None None None
Federal Home Loan Mortgage Corporation None None None
Farm Credit Banks None None None
Federal Home Loan Banks None None None
Federal National Mortgage Association None None None
Student Loan Marketing Association None None None
Financing Corporation None None None
Resolution Funding Corporafion None None None
Certificates of Deposit, Tune Deposits and Bankers' Acceptance 30 days None None
Commercial Paper 270 days None None
Money Market Funds None None None
State Obligations None None None
Municipal Obligations None None None
Repurchase Agreeements None None None
Investment Agreements None None None
Local Agency Investment Fund None None None
Local Agency Investment Fund (LAIF)
The Agency invests in the Local Agency Investment Fund (LAIF), a State of California investment pool.
LAIF determines fair value on its investment portfolio based on market quotations for those securities
where market quotations are readily available and based on amortized cost or best estimate for those
securities where market value is not readily available.
The Agency valued its investments in LAIF as of June 30, 2010, at amortized cost which approximate the
fair value. The fair value is calculated by multiplying the account balance with LAIF times a fair value
factor of 1.001643776 which is determined by LAIF. This fair value factor was determined by dividing all
LAIF participants' total aggregate amortized cost by total aggregate fair value.
The Agency's investments with Local Agency Investment Funds (LAIF) at June 30, 2010, included a portion of
the pooled funds invested in Structured Notes and Asset-Backed Securities.
9-~s15
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the yeaz ended June 30, 2010
2. CASH AND INVESTMENTS, Continued
Local Agency Investment Fund (LAIF), Continued
These investments included the following:
Structured Notes are debt securities (other than asset-backed securities) whose cash-flow characteristics
(coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that
have embedded forwards or options.
Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to
receive a share of the cash flows from pool of assets such as principal and interest repayments from a
pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.
As of June 30, 2010, the Agency had $6,458,980 invested in LAIF, which had invested 5.42% of the pool
investment funds in Medium-Term and Short-Term Structured Notes and Asset-Backed Securities.
Risk Disclosures
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rate will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to
changes in market interest rates. One of the ways that the Agency manages its exposure to interest rate risk is
by purchasing a combination of shorter term and longer term investments and by timing cash flows from
maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as
necessary to provide the cash flows and liquidity needed for operations. Information about the sensitivity of
the fair values of the Agenc}/s investments and those held by bond trustees to market interest rate fluctuations
is provided by the following table that shows the distribution of the Agency's investments by maturity:
Remaining Maturity
12 Months
Investment Type Totals or Fewer
Local Agency Investment Fund $ 6,958,980 $ 6,458,980
Held by fiscal agents: - -
MoneyMarketFunds 2,032,906 2,032,906
US Treasury obligations 5,194,946 5,194,946
Totals $ 13,686,832 $ 13,686,832
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating
organization. To be eligible to receive Agency money, a bank, savings association, federal association, or
federally insured industrial loan company has received an overall rating of not less than "satisfactory" in its
most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the
credit needs of California's communities, including low- and moderate-income neighborhoods.
9-~~ 6
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
- 2. CASH AND INVESTMENTS, Continued
Credit Risk, Continued
Agency investments are rated by the nationally recognized statistical rating organizations as follows:
Standard
Investment Type Fair Value Moody's & Poor's
State of Califoaila -Local Agency Investment Fund -- $ 6,458,980 Not Rated Not Rated
Moneymarketfunds 2,032,906 Aaa AAA
US Treasury obligations 5,194,946 Aaa AAA
$ 13,686,832
Custodial Credit Risk
Demand Deposits:
The California Govemment Code requires California banks and savings and loan associations to secure the
Agency's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this
manner shall have the effect of perfecting a security interest in such collateral superior to those of a general
creditor. Thus, collateral for cash deposits is considered to be held in the Agency's name.
The market value of pledged securities must equal at least 110% of the Agency's pooled cash deposits.
California law also allows institutions to secure Agency deposits by pledging first trust deed mortgage
notes having a value of 150% of the Agency's total cash deposits. The Agency may waive collateral
requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance
Corporation. The Agency, however, has not waived the collateralization requirements.
Investments:
For an investment, custodial credit risk is the risk that, in the event of the failure of the counter party, the
Agency will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are
held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve
Bank.
Concentration of Credit Risk
The investment policy of the City contains limitations on the amount that can be invested in any one issuer
beyond that stipulated by the California Government Code. Investments in any one issuer that represent
5% or more of total Agency's investments are as follows:
Investments Amount
Invested Percentage of
Investments
Local Agency Investment Fund $ 6,458,980 47.19%
Money Mazket Funds 2,032,906 14.85%
US Treasury obligations 5,194,946 37.96%
Total $ 13,686,832 lUU.UU%
9-717
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. LOANS RECEIVABLE
At June 30, 2010, the Agency had the following loans receivable:
Governmental Activities
South Bay Community Services
Heritage (South Bay Community Villas L.P.)
Chula Vista Rehabilitation CHIP Loans
Park Village Apts (Civic Center Barrio Housing Corporation)
Rancho Buena Vista Housing (Chelsea Investment Corporation)
Mobile Home Assistance Programs
SL Regis Park (Chelsea Investment Corporation)
Main Plaza (Alpha III Development Inc.)
Los Vecinos (Wakeland Housing and Development Corporation)
total
Principal Deferred Interest Total
$ 887,994 $ 279,067 $ 1,167,061
4,400,000 1,129,710 5,529,710
1,273,?38 164,352 1,437,590
210,934 - 210,934
1,000,000 162,658 1,162,658
55,952 - 55,952
1,387,152 834,185 2,221,337
1,500,000 247,479 1,747,479
1,680,000 669,937 6,349,937
$ 16,395,269 $ 3,487,389 $ 19,882,658
South Bau Cammunitu Seroices
In 1998, the Agency entered into a loan agreement with South Bay Community Services, a California non-
profit public benefit corporation. The loan amount of $478,200 was made to enable South Bay Community
Services to develop a 40-unit affordable multi-family housing rental project to provide housing to low
income families. The note is secured by a deed of trust on certain property and assignments of rents.
Interest accrues annually at 3% of the unpaid principal balance of the note. At June 30, 2010, the
outstanding balance of the loan was $478,200 and interest of $142,641 has been deferred.
In 1998, the Agency entered into a loan agreement with South Bay Community Services for the acquisition
of property located at 1536 Concord Way for a domestic violence shelter site, other transitional living
programs or housing for very low income families. The loan is secured by a deed of trust and a promissory
note for the properties on behalf of the Agency. Repayment of the loan is limited to annual payment based
on residual receipts. At June 30, 2010, the outstanding balance of the loan was $36,794 and interest of
$25,554 has been deferred.
In 1999, the Agency entered into a $300,000 loan agreement with South Bay Community Services for the
acquisition of a real property at 746 ADA Street, and improving it with amulti-family residential project
consisting of 11 units. These units, called the Trolley Trestle, will provide affordable housing for low
income young adults who have completed the County of San Diego Foster Care program. The loan is
secured by a Deed of Trust and Security Agreement and will accrue 3% interest. Payment of principal and
interest will be made from 50% of residual receipts for 55 years. At June 30, 2010, the outstanding balance
of the loan was $373,000 and interest of $110,872 has been deferred.
9-~ 8
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3.-LOANS RECEIVABLE, Continued
Heritage (South Bau Communitu Villas L.P
In 2002, the City entered into a loan agreement with South Bay Community Villas, L.P. for the development
of the Heritage Town Center multi-family rental housing project. Agency assistance is in the form of
residual receipt loan secured by a promissory note and deed of trust. The outstanding principal and
interest on the loan will be repaid over fifty five years and accrues interest at 3% per annum. Payment of
principal and interest on the Agency loan shall be made on an annual basis, out of a fund equal to fifty
percent of the net cash flow of the project (residual receipts) after debt service on bonds, payment of
deferred developers fee, and reasonable operating expense have been paid. At June 30, 2010, the
outstanding balance of the loan was $4,400,000 and interest of $1,129,710 has been deferred.
Chula Vista Rehabilitation CHIP Loans
The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the direct
control of the Agency. CHIP offers deferred and low interest rate home improvement loans to qualified
borrowers residing within a target area. Loan repayments are re-deposited into the program cash accounts
and are redistributed as future loans. At June 30, 2010, the outstanding balance of the loan was $1,273,238
and interest of $164,352 has been deferred.
Park Village Apartments (Civic Center Barrio Housing Corooration
In 1991, the Agency entered into a loan agreement with the Civic Center Barrio Housing Corporafion, a
California non-profit public benefit corporation. The loan was made for the purchase of land and the
development of a 28-unit low income housing project. During 1992, the loan was assigned to Park Village
Apartments Ltd., a California limited partnership in which Civic Center Barrio Housing Corporation is the
managing general partner. The loan is secured by a deed of trust on the property and assignment of rents.
Principal and interest are payable monthly. Interest accrues annually at 5% of the unpaid principal balance
of the note. At June 30, 2010, the outstanding balance of the loan was $210,934.
Rancho Buena Vista Housing (Chelsea Investment Corporation)
In 2000, the Agency loaned $1,000,000 to CIC Eastlake, L.P. for the development and operation of Rancho
Vista Housing project, a multifamily affordable housing project. The loan will be secured by promissory
notes and deeds of trust. The outstanding principal and interest amount of the loan will be repaid over
fifty-five (55) years and accrues interest at the simple interest rate of three (3%) percent per annum.
Payment of principal and interest, or porfions thereof, on the loan are made on an annual basis, out of a
fund equal to fifty (50%) percent of the net cash flow of the project. At June 30, 2010, the outstanding
balance of the loan was $1,000,000 and interest of $162,658 has been deferred.
Mobile Home Assistance Programs
The Agency entered into agreements with eligible residents of the Orange Tree Mobile Home Park,
whereby the Agency loaned $250,030 as permanent financing assistance to residents for the purpose of
purchasing certain mobile home property. The loans are secured by deeds of trust on the property and
mature in 2017 or when the property is sold. Contingent interest will be charged based on calculations
specified in the agreement. At June 30, 2010, the outstanding balance of the loan was $55,952.
9-~s19
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
3. LOANS RECEIVABLE, Continued -
St Regis Park (Chelsea Investment Corporation/Sunbow Services Co., LLC)
In 2000, the Agency entered into a loan agreement with Chelsea Investment Corporation for the acquisition
and rehabilitation of the 119-unit Pear Tree Apartments at 1025 Broadway. All units are affordable to low
income households. The loan is secured by a deed of trust and accrues 6% interest for 52 years. Payment of
-principal and interest is made on an annual basis out of a fund equal to 90% of the residual receipts. At -
June 30, 2010, the outstanding balance of the loan was $1,387,152 and interest of $834,185 has been deferred.
Main Plaza (Alpha III Development Inc.)
In 2003, the Agency entered into a loan agreement with Main Plaza, LP (Borrower) to assist the borrower in
acquiring and improving certain real property for occupation by very low, lower and low and moderate
income households. The total loan amount is $1,500,000 and bears an interest rate of 3% per annum. The
loan is due and payable on the date that is 55 years from the date of the Agency's issuance of the Certificate
of Completion, which is in 2061. At June 30, 2010, the outstanding balance of the loan was $1,500,000 and
interest of $247,479 has been deferred.
Los Vecinos (Wakeland Housing and Development Corporation)
In 2008, the Agency entered into a loan agreement with Wakeland Housing and Development Corporation
to assist the borrower in constructing 41 affordable multi-family apartment units for occupancy by
extremely low, very low and lower income households. The loan was funded by the Agency's Low and
Moderate Income Housing Special Revenue Fund. The loan bears an interest rate of 5% per annum.
Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the residual
receipts for years 1-30, 75% of the residual receipts for years 31-54, until 55 years from the date the
improvements are placed in service, at which time all principal and unpaid interest shall be due and
payable. The improvements were placed in service on February 7, 2008. At June 30, 2010, the outstanding
balance of the loan was $5,680,000 and interest of $669,937 has been deferred.
s-aao
Redevelopment E` gency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
4. INTERFUND TRANSACTIONS
A. Advances To and Advances From Other Funds
As of June 30, 2010, Interfund balances were as follows:
Advance from other funds
Town Centre II
Otay Valley
Bayfront/ Southwest
Town Centre I Merged Projects
Advance to other funds Debt Service Debt Service Total
Governmental Activities:
Bayfront/Town Centre I Capital Projects $ 46,556 $ 4,907,009 $ 4,953,565
Low & Moderate Income Housing Fund 1,337,765 2,827,085 4,164,850
Total $ 1,384,321 $ 7,734,094 $ 9,118,415
B. Transfers In and Out
As of June 30, 2010, transfers were as follows:
Low dr Moderate Income Housing
RDA Housing Program
Bayfront/Town Centre I Debt Service
Town Centre II Otay Valley SW Merged
Projects Debt Service
Bayront/Town Centre [Capital Projects
Town Centre II Otay Valley SW Merged
Projects Capital &ojects
Total
Transfers In
Moderate Otay Valley Town Centre I]
Income RDA Housing Southwest Ota}'VaRey
Housing Program Bayfront/ Merged Bayfront/ Southwest
Spedal Spedal Towncenlre I Projects Debt Towncentre ] Merged Capital
Revenue Revenue Debt Service Service Capital Projects Projects Total
5,348,938 - - -
- - - 1,336,930
916,007 - 1,690,863 -
1,860,921 - 33,527 2,809,733 - - 4,704,181
$ 8,125,866 $ 65 $ 1,724,390 $ 2,809,733 $ 1,336,430 $ 2829,264 $ 16,820,748
$ 65
5,348,938
1,336,430
2,624,264 2,824,264
- 2,606,870
5. DUE FROM THE CITY OF CHULA VISTA
At June 30, 2010, the Agency had amounts due from the City of Chula Vista of $733,302. This amount
represents a one day loan which was made to cover cash overdraws from reimbursements not received
as of June 30, 2010.
9-231
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
6. CAPITAL ASSETS
A. Government-Wide Financial Statements
Changes in capital assets during the year ended June 30, 2010, were as follows:
Balance Balance
July 1, 2009 Additions Delefions June 30, 2010
Governmental activities:
Capital assets, not being depreciated`.
Land $ 9,790,977 $ - $ - $ 9,790,977
Total capital assets, not being depreciated 9,790,977 - - 9,790,977
Capital assets, being depreciated:
Buildings and improvements
Machinery and equipment
Total capital assetr, being depreciated
Less accumulated depreciation
Net capital assets, being depreciated
Total capital assets, net
2,356,218 - - 2,386,218
12,000 - - 12,000
2,398,218 - - 2,398,218
(979,671) (47,724) - (1,027,395)
1,418,547 (47,724) - 1,370,823
$ 11,209,524 $ (47,724) $ - $ 11,161,800
Depreciation expense of the Agency for the year ended June 30, 2010, was $47,724 and was charged
entirely to the general government function of the Agency.
7. LONG-TERM DEBT
Long-term debt consisted of the following at June 30, 2010:
Classification
Balance Balance Due in Due in more
July 1, 2009 Additions Deletions June 30, 2010 one yeaz than one year
ERAF Loans
2005 _ $ 505,000 $ - $ (T,000) $ 430,000 $ 80,000 $ 350,000
2006 710,000 - (85,000) 625,000 90,000 535,000
Advances from City of Chula Vista 26,213,116 872,180 (2,782,842) 24,302,454 - 24,302,454
Tax Allocation Bonds
2006 Senior TAB SeriesA 12,580,000 - (480,000) 12,100,000 500,000 11,600,000
20065ubordinate TAB Series6 11,625,000 - (425,000) 11,200,000 440,000 10,760,000
2008 TAB Refunding 21,625,000 - - 21,625,000 - 21,625,000
Less: bond discounts (992,091) - 44,774 (947,317) - (947,317)
Total $ 72,266,025 $ 872,180 $ (3,803,068) $ 69,335,137 $ 1,110,000 $ 68,225,137
9-~~2
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. LONG-TERM DEBT, Continued
ERAF Loans
ERAF Loan - 2005
In May 2005, the Agency entered into a loan agreement with the California Statewide Communities
Development Authority in the amount of $765,000 to finance -their 2005 share of ERAF payments to the
County Auditor. Interest is payable semi-annually on February 1 and August 1 at interest rates ranging
from 3.87% to 5.01%.
The annual debt service requirements for the ERAF Loan - 2005 is as follows:
Year Ending
June 30,
2011
2012
2013
2014
2ols
Total
Princiual
$ 80,000
80,000
85,000
90,000
95,000
$ 430,000
Interest
$ 22,115
18,354
14,526
10,356
s,sso
$ 71,234
Total
ERAF Loan - 2006
$ 102,118
98,354
99,526
100,356
loo,sso
$ 501,234
In May 2006, the Agency entered into a loan agreement with the California Statewide Communities
Development Authority in the amount of $930,000 to finance their 2006 share of ERAF payments to the
County Auditor. Interest is payable semi-annually on February 1 and August 1 at interest rates ranging
from 5.28% to 5.67%.
The annual debt service requirements for the ERAF Loan - 2006 is as follows:
Year Ending
June 30, Principal Interest Total
2011 $ 90,000 $ 35,996 $ 125,996
2012 95,000 31,052 126,052
2013 100,000 25,784 125,754
2014 105,000 20,158 125,1SS
2015 115,000 14,252 129,282
2016 120,000 7,792 127,792
Total $ 625,000 $ 135,094 $ 760,094
Advances from the City of Chula Vista
At June 30, 2010, the outstanding balance of the Advances from the City of Chula Vista was $24,302,453.
The proceeds of the advances were to fund projects and debt service payments. There are no set repayment
terms in relation to these advances. Payments will be made as tax increment revenues are available for the
repayment of the loans. Interest is calculated based on the LAIF average annual yield at the time the
advance is made.
9-~23
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the yeaz ended June 30, 2010
LONG-TERM DEBT, Continued --
Tax Allocation Bonds
2006 Senior Tax Allocation Re nding Bonds, Senes A
In July 2006, the Agency issued the 2006 Senior Tax Allocation Refunding Bonds, Series A in the amount of
$13,435,000 to refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994
Senior Tax Allocation Refunding Bonds, Series A, and to satisfy the reserve requirement for the Bonds and
provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of
property, demolition, relocation, public improvements and funding the Low and Mod Income Housing
Project. The bonds consist of serial bonds which mature in 2028. Interest is payable semiannually on March
1 and September 1 at interest rates ranging from 4.00% to 4.60%. The bonds are subject to optional
redemption on any interest payment date on or after September 1, 2012, at various redemption prices. The
bonds are payable solely from certain tax increment revenues of the Agency and other funds held under the
indenture. The balance outstanding at June 30, 2010 was $12,100,000.
The annual debt service requirements for the 2006 Senior Tax Allocation Refunding Bonds, Series A
outstanding at June 30, 2010 were as follows:
Year Ending
June 30, Pruxipal Interest Total
2011 $ 500,000 $ 517,945 $ 1,017,945
2012 520,000 497,545 1,017,545
2013 540,000 474,995 1,014,995
2014 565,000 450,133 1,015,133
2015 590,000 424,145 1,014,145
2016-2020 3,335,000 1,723,626 5,OSS,626
2021-2025 4,110,000 922,676 5,032,676
2026-2028 1,940,000 114,540 2,054,540
Total $ 12,100,000 $ 5,125,604 $ 17,225,604
2006 Subordinate Tax Allocation Refunding Bonds, Series B
In July 2006, the Agency issued $12,325,000 2006 Subordinate Tax Allocation Refunding Bonds, Series B to
refinance the Agency's outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax
Allocation Refunding Bonds, Series C and D, and to satisfy the reserve requirement for the Bonds and
provide for the costs of issuing the Bonds. The original bond proceeds were used in the acquisition of
property, demolition, relocation, public improvements and funding the Low and Mod Income Housing
Project. The bonds consist of $7,995,000 serial bonds which mature from 2007 to 2021 in amounts ranging
from $290,000 to $735,000 and term bonds of $4,330,000 which mature in 2025. Interest is payable
semiannually on April l and October 1 at interest rates ranging from 4.00% to 6.00%. The bonds are subject
to optional redemption on any interest payment date on or after October 1, 2012, at various redemption
prices. The bonds are payable solely from certain tax increment revenues of the Agency and other funds
held under the indenture. The balance outstanding at June 30, 2010 was $11,200,000.
9-~4
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. LONG-TERM DEBT, Continued
Tax Allocation Bonds, Continued
2006 Subordinate Tax Allocation Bonds, Series B
The annual debt service requirements for the 2006 Subordinate Tax Allocation Refunding Bonds, Series B
outstanding at June 30, 2010 were as follows: -
Year Ending
June 30, Principal Interest Total
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2028
Total
2008 Tax Allocation Re nding Bonds
$ 440,000 $ 551,084 $ 991,084
460,000 531,384 991,384
480,000 510,234 990,234
500,000 487,934 987,934
525,000 464,096 989,096
3,030,000 1,899,161 4,929,161
3,885,000 1,022,503 4,907,503
1,880,000 126,788 2,006,788
$ 11,200,000 $ 5,593,184 $ 16,793,184
In July 2008, the Agency issued the 2008 Tax Allocation Refunding Bonds in the amount of $21,625,000 to
refinance the Agency's outstanding Merged Redevelopment Project 2000 Tax Allocation Bonds, to satisfy
the reserve requirement for the Bonds, to provide for the costs of issuing the Bonds, and to provide funds to
finance or refinance redevelopment activities. The bonds consist of $11,570,000 serial bonds which mature
from 2014 to 2028 in amounts ranging from $575,000 to $1,020,000 and term bonds of $3,345,000 and
$6,710,000 which mature in 2031 and 2036 respectively. Interest is payable semiannually on March 1 and
September 1 at interest rates ranging from 4.00% to 4.94%. The bonds are subject to optional redemption on
any interest payment date on or after September 1, 2019, at various redemption prices. The bonds are
payable solely from certain tax increment revenues of the Agency and other funds held under the
indenture. The balance outstanding at June 30, 2010 was $21,625,000.
s-ass
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2010
7. LONG-TERM DEBT, Continued -"
Tax Allocation Bonds, Continued
2008 Tax Allocation Re nding Bonds, Conrinued
The annual debt service requirements for the 2008 Tax Allocation Refunding Bonds outstanding at June 30,
2010 were as follows:
Year Ending
June 30, Principal Interest Total
2011 $ - $ 963,636 $ 963,636
2012 - 963,636 963,636
2013 - 963,636 963,636
2014 - 963,636 963,636
2015 575,000 952,136 1,527,136
2016-2020 3,235,000 4,389,681 7,624,681
2021-2025 3,940,000 3,662,660 7,602,660
2026-2030 4,885,000 2,698,901 7,583,901
2031-2035 6,120,000 1,432,331 7,552,331
2036-2037 2,870,000 137,988 3,007,988
Total $ 21,625,000 $ 17,128,241 $ 38,753,241
Pledged Revenues
The Agency has pledged tax revenues to the repayment of the Agency's debts through the final maturity of
the Bonds, or early retirement of the Bonds, whichever comes first.
Tax revenues consist of tax increment revenues allocated to the Agency's project areas pursuant to Section
33670 of the Redevelopment Law excluding that portion of such tax increment revenues required to be paid
under Tax-Sharing Agreements unless the payment of such amounts has been subordinated to payment of
debt services on the Bonds. Tax increment received in 2009-2010 was $13,884,638 and total debt service of all
Tax Allocation Bonds paid was $2,975,381. The Bonds required 21% of net revenues. In future years,
annual principal and interest payments on the Tax Allocation Bonds are expected to require approximately
30% of tax increment revenues.
9-3x26
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
8. DEFERRED REVENUES
A. Fund Financial Statements
Deferred revenue as of June 30, 2010 was reported as follows:
Principal Interest Total
Loans receivable:
South Bay Community Services $ 887,994 $ 279,068 $ 1,167,062
Heritage (South Bay Community Villas L.P.) 4,400,000 1,129,710 5,529,710
Chula Vista Rehabilitation CHIP Loans - 164,352 164,352
Rancho Buena Vista Housing (Chelsea Investment Corporation) 1,000,000 162,658 1,162,658
St. Regis Park (Chelsea Investment Corporation) 1,387,152 834,185 2,221,337
Main Plaza (Alpha QI Development Inc.) 1,500,000 247,479 1,747,479
Los Vecinos (4Vakeland Housing and Development Corporation) 5,680,000 669,937 6,349,937
Advances to other Eunds - 1,351,505 1,351,505
Total $ 14,855,146 $ 4,838,894 $ 19,694,040
9. COMMITMENTS AND CONTINGENCIES
A. Litigation
In addition, the Agency is a defendant in certain legal actions arising in the normal course of operations.
In the opinion of management, any liabilities resulting from actions, except for those already disclosed,
will not have a material adverse effect on the Agency's financial position.
B. Commitment to the City's General Fund
The City's General Fund has spent a cumulative amount of $807,264 on unreimbursed City staff time
rendered on behalf of the Agency. It is anticipated, however, not assured, that the Agency will repay
this amount from tax increment revenues. Currently, tax increment revenues are used to pay for related
debt service expenditures and possible future debt issuance. As a result, the Agency is uncertain if the
amount wIll be repaid to the City's General Fund. Accordingly, this contingent payable has not been
reported in accompanying basic financial statements.
10. RISK MANAGEMENT AND SELF INSURANCE PROGRAMS
The Agency participates in aself-insurance program for workers' compensation and general-liability
coverage, which is administered by the City. The Agency pays an amount to the City representing an
estimate of amounts to be paid for reported claims incurred and unreported claims based upon past
experience, modified for current trends and information.
Wtlfle the ultimate losses incurred through June 30, 2010, are dependent upon future developments, the
Agency's management believes that amounts paid are sufficient to cover such losses. Premiums paid by the
Agency far the year ended Jure 30, 2010, were $16,798.
Citywide information concerning risks, insurance policy limits, deductible and designation of general fund
balance for the year ended June 30, 2010, may be found in the notes of the City's basic financial statements.
9-2~7
Redevelopment Agency of the City of Chula Vista
Notes to Basic Financial Statements, Continued
For the year ended June 30, 2009
11. DEFICIT FUND BALANCE
At June 30, 2010, the following funds had fund balance deficits:
Fund
Debt Service Fund
Fund Type Defirit
Major Governmental Fund S (6,191,002)
Debt Service Fund -The Debt Service Fund for the Merged Project Area had an accumulated deficit of
$(6,191,002), which resulted from insufficient revenues and transfers to the City for repayments of other
advances.
12. UNRESTRICTED NET ASSET (DEFICIT)
The unrestricted net assets (deficit) of $(58,161,485) is expected to be recovered from future tax increment.
The Agency, under State Law, is required to maintain certain indebtedness in order to be eligible to receive
tax increment.
13. SUBSEQUENT EVENT
State Bud etp Crisis
In 2009, the State enacted legislation authorizing atwo-year takeaway of Redevelopment Agency funds.
The payment was $4,160,694 in 2009-2010 and another $855,797 is anticipated for 2010-2011. These amounts
were assumed in the 2009-2011 Budgets. This action was litigated by the California Redevelopment
Association and other parties. This lawsuit challenges the constitutionality of ABX 4-26 and seeks to
prevent the State from taking redevelopment funds for non-development purposes. As of the date of this
report, the court's decision is currently being appealed and the results have not yet been determined.
9-~~$
REQUIRED SUPPLEMENTARY
INFORMATION
9-~s~9
Redevelopment Agency of the City of Chula Vista
Required Supplementary Information
For the year ended June 30, 2010
1. BUDGETARY INFORMATION -
An annual budget is adopted by the Board of Directors prior to the first day of the fiscal year. The budget
process includes submittal of each departments budget request for the next fiscal year, a detailed review of
each department's proposed budget by ti1e Executive Director, and a final Executive Director recommended
budget that is transmitted to the Board of Directors for its review before the required date of adoption.
Once transmitted to the Board of Directors, the proposed budget is made available for public inspection. A
public hearing is held to give the public the opportunity to comment upon the proposed budget. Notice of
such public hearing is given in a newspaper of general circulation.
The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of
budgetary control is at the department level. Any budget modification, which would result in an
appropriation increase, requires Board of Directors approval. The Executive Director and Finance Director
are jointly authorized to transfer appropriations within a departmental budget. Any appropriation
transfers between departments require Board of Directors approval.
Reported budget figures are as originally adopted or subsequently amended plus prior year continuing
appropriations. Such budget amendments during the year, including those related to supplemental
appropriations, did not cause these reported budget amounts to be significantly different than the originally
adopted budget amounts. All appropriations which are not obligated, encumbered or expended at the end
of the fiscal year lapse become a part of the unreserved fund balance which may be appropriated for the
next fiscal year.
An annual budget for the year ended June 30, 2010, was adopted and approved by the Board of Directors
for the special revenue and debt service funds. These budgets are prepared on the modified accrual basis of
accounting except that encumbrances outstanding at year-end are considered as expenditures. The budgets
of the capital projects funds are primarily long-term budgets, which emphasize major programs and capital
outlay plans extending over a number of years. Because of the long-term nature of these projects, annual
budget comparisons are not considered meaningful, and accordingly, no budgetary information for capital
projects funds is included in the accompanying basic financial statements.
9-$c30
Redevelopment Agency of the City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATIdN, Continued
Budgetar~Comparison Schedule, Low-Moderate Income Housing Special Revenue Fund
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current
General government
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
$ 18,636 $
18,636
18,636 $ 172,372 $ 153,736
- 1,163 1,163
18,636 173,535 154,899
Fund balance:
Beginning of year
End of year
1,425,861 1,435,349 470,183 965,166
1,425,861 1,435,349 470,183 965,166
(1,407,225) (1,416,713) (296,648) 1,120,065
6,748,474 6,748,474 8,125,866 1,377,392
(115,569) (115,569) (115,634) (65)
6,632,905 6,632,905 8,010,232 1,377,327
$ 5,225,680 $ 5,216,192 7,713,584 $ 2,497,392
6,467,590
$ 14,181,174
9-$131
Redevelopment Agency of the City of Chula Vista
Required Supplementary Information, Continued
For the year ended June 30, 2010
1. BUDGETARY INFORMATION, Continued -
Budgetaru Comparison Schedule, RDA Housin, Pro r9 am Special Reaenue Fund
Budgeted Amounts Actual Variance with
Original Final Amounts Final Budget
Revenues: --
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Transfers in
Transfers out
Total other financbtg sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
$ - $ - $ 10,888 $ 10,888
- - 49 49
- - 10,937 10,937
- 39,999 222 39,777
39,999 222 39,777
- (39,999) 10,715 50,714
- - 65 65
(3,920,000) (3,920,000) (5,465,541) (1,545,541)
(3,920,000) (3,920,000) (5,465,476) (1,545,476)
$ (3,920,000) $ (3,959,999) (5,454,761) $ (1,494,762)
5,454,761
$ -
s-a~2
SUPPLEMENTARY INFORMATION
9-253
This page intentionally left blank
9-~fi4
Redevelopment Agency of the City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Bayfront/Town Centre I Debt Service Fund
For the year ended June 30, 2010
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current:
General government
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDTTURES
Other Financing Sources (Uses)
Proceeds from advances from City of Chula Vista
Repayment of advances from City of Chula Vista
Transfers in
Transfers out
Total other financutg sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final Actual Variance with
Budget Amounts Final Budget
$ - $ 98,362 $ 98,362
- 384 384
- 98,746 98,746
10,000 5,382 4,618
996,584 996,585 (1)
1,369,643 1,323,805 45,838
2,376,227 2,325,772 50,455
(2,376,227) (2,227,026) 149,201
- 175,718 175,718
- - (472,955) (472,955)
2,614,861 1,724,390 (890,471)
(1,336,430) (1,336,430) -
1,278,431 90,723 (1,187,708)
$ (1,097,796) (2,136,303) $ (1,038,507)
2,787,475
$ 651,172
9-2`$5
Redevelopment Agency of the City of Chula Vista
Schedule of Revenues, Expenditures and Changes in Fund Balances -Budget and Actual
Town Centre II Otay Valley Southwest Merged Projects Debt Service Fund
For the year ended June 30, 2010
Revenues:
Use of money and property
Other
Total revenues
Expenditures:
Current-.
General government
Debt service:
Principal
Interest and fiscal charges
Total expenditures
REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Proceeds from advances from City of Chula Vista
Repayment of advances from City of Chula Vista
Transfers in
Transfers out
Total other financing sources (uses)
Net change in fund balance
Fund balance:
Beginning of year
End of year
Final
Budget
Actual Variance with
Amounts Final Budget
$ 2,994 $ 2,994
314 314
3,308 3,308
2,475
68,415
2,171,939
2,240,354
68,415
1,930,681
2,001,571
(2,240,354) (1,998,263)
(2,475)
241,258
238,783
242,091
- 696,462 696,462
- (2,309,887) (2,309,887)
3,369,562 2,809,733 (559,829)
(2,824,264) (2,824,264) -
545,295 (1,627,956) (2,173,254)
$ (1,695,056) (3,626,219) $ (1,931,163)
(2,564,783)
$ (6,191,002)
s-~6
C&L
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certifted Public Accountants
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND OTHER MATTERS AND
_ ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
We have audited the basic financial statements of the Redevelopment Agency of the City of Chula
Vista (Agency), a component unit of the City of Chula Vista, California (City), as of and for the year
ended June 30, 2010, and have issued our report thereon dated December 22, 2010. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Agency's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinion on
the financial statements but not for the purpose of expressing an opinion on the effectiveness of the
Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the
effectiveness of the Agency's internal control over financial reporting.
A control deficiency exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A material weakness is a deficiency; or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the
Agency's financial statements will not be prevented, or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose
described in the first paragraph of this section and was not designed to identify all deficiencies in the
Agency's internal control over financial reporting that might be deficiencies, significant deficiencies,
or material weaknesses. We did not identify any deficiencies in internal control over financial
reporting that we consider to be material weaknesses, as defined above.
nww.o-lcpa.com
9-237
To the Board of Directors
of the Redevelopment Agency of the City of Chula Vista
Chula Vista, California
Page 2
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Agency's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. Such provisions included those
provisions of laws identified in the Guidelines for Compliance Audits of California Redevelopment Agencies,
issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing
Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and
Auditing Committee of the California Society of Certified Public Accountants. However, providing
an opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The result of our tests disclosed no instances of noncompliance or
other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use of management, the Board of Directors of
the Agency, others within the entity, and the State Controller and is not intended to be and should not
be used by anyone other than these specified parties. However, this report is a matter of public record
and its distribution is not limited.
~~ ~ ~ ~C.
Caporicci & Larson, Inc.
A Subsidiary of Marcum LLP
Certified Public Accountants
San Diego, California
December 22, 2010
9-~38
~ a
~ ~aenera'I Ihfotlf;~tivn
CD
I
N
w
cc
Fiscal Year ,2670E
Last Name
~ ,_:.; . ~. ~ ~
> First Nerve
,~ lnitiaY :'.
.
.-.::
Chairpersont' ~Coz
.
. Cheryl
, ~
lgelntrer ,- Ramirez __ Rudy
'I
]Aember Castaneda .--
Steve
McMber iBensoussan Pamela
Member McCann John
Ma{dber ~~
Nl'emtiet' ~ . ~
Menibery
N1e(naer ' ~N,'
Member '
y~i i ,~ ~ ~~
Street 1 ;276 Fourth Avenue
Street 2 '
CIty (Chula Vista ~ State :CA Zip 91910-
Phone (619) 691-5051 ®Is Address Changed?
FiilnuName
last`.!
Fdrst"~' .
MfdQleinlh~t ,;
sit '
LSry>
State]
Zip GLGa '.
Phone;
Last Name,
Halbert j
Kachadoorian ~
CroGCett
((619) 409-5916
First Name Middle
Gary _ ~ (619) 691-5031
Maria __ ~ ~ (619)691-5051
Eric ~ (679)476-5341
Pun
Kenneth
C
4225 Executive Square, Sude 1070 'i
San Diego
CA
92037-
~858) 228-5005
CD
I
N
O
Was the Report Prepared from Audited Financial Data,
and Did You Submit a Copy of the Audit?
Indicate Financial Audit Opinion
If Financial Audit is not yet Completetl, What is the
Expected Completion Date?
If the AudH Opinion was Other than Unqualifed, State
Briefly the Reason Given
Was a Compllanrs AudR Performed in Accordance with
Health and Safety Code Section 33080.1 and the State
ConVOller's Guitlelines for Compliance Audits, and Did
You Submit a Copy of the Audit?
Indicate Compliance Autlit Opinion
If Compliance Audit is not yet Completed, What is the
Expected Completion Dafe?
Yes
Unqualified)
Yes
'i,UnqualiFied
0
i ' ,,Alfil(iln~4rt~a{ion~ ;, ~ ~ ,~
..._..._.,, _,.2 . , i ~ ~.....,_ _. ., ~, , .~ u:u .:o .. ~ .. ~ .... ii .._. ,~-. .k ....~ t, .. y .,.
Fiscal Year ' ,-" '2010!
If Compliance opinion includes exceptions,
stale the areas of non-compliance, and
describe the agency's efforts to correct.
CO
I
N
f
Actlwty~ReporU ?i
the primary focus in this project _
area is to further the redevelopment --
of the Chula Vista Bayfront. A
Settlement Agreement with the San '
Diego Unified Port District and the
Bay Front Coalition was approved,
and the Certified Environmental
Impact Report was adopted. The
RDA also entered into a Cooperative
Remetliation Agreement with
Goodrtch Aerospace Structures for
the funding of remediation and
retrofitting of their existing
manufacturing facility located in the
Bayfront. Alang Third Avenue, in the
Town Centre I Project Area, the
Agency continues to fund the
development of the Third Avenue -
Streetscape Master Plen. The
construction drawings for that Master '
Plan were completed and
construction is effected to begin in
February 2011.
P =Standard Project Area Report
L =Low and Moderate Income Housing Fund
O =Other Miscellaneous Funds or Programs
Does the Plan Include Tax Increment Provisions?
Date Project Area was Established (MM-OD-YY)
Most Recent Dale Project Area was Amended
Did this Amendment Add New Territory?
Mosl Recenl Date Project Area was Merged
Will this Project Area be Carried Forward to Next Year?
A =Administrative Fund
M =Mortgage Revenue Bond Program
5 =Proposed (Survey) Project Area
Yes,
7/7/1974!,
7I28I2006!.
-..__-._ NO_
4/22/1966!.
Yes
Established Time Limit
Repayment of Indebtedness (Year Only) 2039
EBectiveness of Plan (Year On/y) 2029;
New Indebtedness (Year Only) ~ 2029':
Size of Project Area in Acres 7.174 ~
Percentage of land Vacant at the Inception of the Project Area 3.O
Health and Safety Code Section 33320.1 (xx.x%)
Percentage of Land Developed at the Inception of the Project Area '9 OI
Health and Safety Code Section 33320.1 (xx.x%)
Objectives of the Project Area as Set Forth in the Project Area Plan ' RICPO
(Enter the Appropriate Code(s) in Sequence as Shown)
R=Residential I= Industrtal C=Commercial P=Public O =Other
Please Provide a Briei Description of
the Activities for this Project Area
During the Reporting Year. Forwarded from Prior Year 7 - ~~ s
Enter Code for Type of Project Area Report
CO
I
N
N
Please Provide a Brief Description of
the Activities for th is Project Area
During the Reporting Year.
"Qchmty,Retior6" [:
infrastructure improvements,
development, streamlining and the
promotion of a transparent and
inclusive public input process in the
Merged Project Area. Its economic
development program included
provided funding and assistance to
its storefront renovation program
assisting several commercial and
retail husinesses along the
Broadway wrridor. The Agency also
continued its funding for the
preparation of a comprehensive
Main Street Streetscape Master
Plan, and it approved the Eighth
Amendment to the Disposition and
Development Agreement with
Gateway LLC for the development of
an additional 150,000 sq. ft. of Class
A office space. In the policy arena,
a new public participation plan was
adopted, along whh the Five-Year
Implementation Plan.
ForwaNed from Prior Year?
Enter Cade for Type of Projed Area Report
P =Standard Project Area Repod
L =Low and Moderate Income Housing Fund
O =Other Miscellaneous Funds or Progrems
Does the Plan Include Tax Increment Provisions?
Date Project Area was Established (MM-0D-YY)
Most Recent Date Projed Area was Amended
Did this Amendment Add New Territory?
Most Recent Date Project Area was Mergetl
Will this Project Area be Canied Forward to Next YeaA
Established Time Llmit:
Repayment of Indebtedness (Year On/y)
Effectiveness of Plan (Year Only)
New Indebtedness (Year Only)
Size of Project Area in Acres
pi
A =Administrative Fund
M =Mortgage Revenue Bond Program
S =Proposed (Survey) Project Area
I Yesl
8/13/1978!
7/25/20061
Nol
---- ---wvzooo~
Yes'
Percentage of Land Vacant at the Inception of the Project Area
Health and Safety Cade Section 33320.1 (xx.xy)
Percentage of Land Developed a[ the Inception of the Project Area
Health and Safety Code Section 33320.1 (xx.x%)
Objectives of the Project Area as Set Fodh in the Project Area Plan
(Enter the Appropriate Code(s) in Sequence as Shown)
20491
' 2034
2034
j 2,456
! 72.0
28.0
RICPO~
R=Residential I=Industrial C=Commercial P=Public O =Other
CO
IV
W
.ks _..... . , G , '. , .: ' . ~ k's~sesswrd V;~Iba~On I)a1a,~ , t ' ~ ; , , ,
Fiscal Year 2010
Project Area Name
Frozen Base Assessed Valuation
Increment Assessed ValuaBOn
Total Assessed Valuation
Town Canter IBayfront Project Area
252,585,488'
309,796,651
~ 562,382,1391
CD
N
~_ . pssiisseu Ya~tattun'oata' 4 '
Fiscal Year 2010
Project Area Name
Frozen Base Assessed Valuation
Increment Assessed Valuation
Total Assessed Valuation
Mown Center II, Otay valley, Southwest Merged
'Project Areas
702,901,853
.... _...567
...... _. _925 ,13... . _ ... ;
1,628,033,420
CO
I
N
Project Area Name Town Center I/Bayfront Project Area
Tax Increment Pass Through Detail Other Payments
Amounts Paid To Taxing H & S Code H & S Code H & S Code Total H S S Cade H & S Code
Agencies Pursuant To: Secton 33401 Section 33676 Section 33607 Section 33445 Secton 33445.5
County ! 116,755 $116,755
Cities i, - 81,483 - $81,483._,
School Districts 211 205 $211 205
Community College DistdU 22 353 $22 353 I
'Special Districts 11,063 $1.1.,063 _
Total Paid to Taxing __ __ , $0 __ _,___ $0 __. $442,859_.._ ,
___ _.. $442,859 ..,_,,,.,,,., $0,__,. ,, , $0. _._:
._..,.
Agencies
Net Amount to Ageney -.. _ __.,,.,,,,$4,137,175_.,x_.
Gross Tax Increment 4,580,034'.
Generated
to am -~ n s v ~°s~ -, z
'Pass-+"6~r`tSttg~ f ~~ao[ ~IStFaot~Asbi~~nte i ~ ,~. ,} ~ ,
,..~~..., ~ ~ ., .r ". ~ ,,~, .~,~. ~,
Fiscal Year 2010
Project Area Name Town Center II, Otay Valley, Southwest Merged Project Areas
Tax Increment Pass Through Detail Other Payments
Amounts Paid To Taxing H & S Code H 8 S Coda H & S Code Total H & S Code H & S Code
Agencies Pursuant To: Section 33401 Section 33676 Sedian 336117 Section 33445 Section 33445.b
t0
1
N
Ja
01
County 614,640 177,770 ,, ,,,,,,.,.,_ $791,810 _._
Cdies 139,847 $139,847 _,
School Districts ~ ~ 628 862 371 456 $1 000 318
Community College District 66 5661 39 125 $105,691
Special Districts 35,415'• 25,094 $60,509
Total Paid to Taxing ,.$1345,483....._,
_. ,,,,_,,.,,,,$0 __.__$752,692,,,.
.... $2098,175 ,,,,. $D __ „_$0
Agencles
Net Amount to Agency ~ ._ _,...,_,$7~?~~429 .:
Gross Tax Increment 9,304,604
Generated
_. _~ .. _ ._ ,PSSS=7Jtrough~Sohool~st~t~t:4ssistanca ., .
Fiscal Year 2010
~ ~~ r s , ~ ~ ~ ~ ' .~.: rJA1MtS~8~~4~~f7Bw~~teltieII~l~b1'.~tl'l'~O~fQr~~P.9~fOfeC.~~°~'1~'d iti ~ ~~ r i r ijU
r/i r la,. le ~,~-~~. . ,. iU~d Amoy
Fiscal Year ,' :20M0 -
tD
I
N
A
J
Project Area Name
Tax Allocafion Bond Debt 34,018,787
Revenue Bonds 0
Other Long Term Debt - 733,246
City/County Debt 5,177,566
Low and Moderate Income Housing Fund 14,482,659
Other 16,020,825
Tofal $70,433,083
Available Revenues 4,708,613
Net Tax Increment Requirements $65,724,470 '.
-, Sutnprary of the, ~'ie#e"m'ent of ~ndeYS'ELttrie5s PmJ$Ot Atea ,
Fiscal Year ~~~2010 I_
c0
IV
A
Protect Area Name
Tax Allocation Bond Debt
Revenue Bonds
Other Long Term Debt
City/County DeM
Low and Moderate Income Housing Funtl
Other
Total
Available Revenues
Net Tax Increment Requirements
e~
38,753,242
j`~L~ ~~~~ ~" i'~ ~''-~l'~9 '1r~d ~ ~ 8+~y, a ~', xhv a' = ~~qw „r;° ~.Y :ey. lfi" d~y`t~-`~~'~1 ~i~ '~'~~~°j i~„~ c
~?S ,,, ~. 6 . }; 3. ~,,g', ad ~ ~,~*`~ 7~~s t?:'3, t P ~~~.,1 ~ +~ t~n~: 3: _~.
Agency Long-Term Dabt
tD
1
N
A
CO
Fiscal Year 2010 I
Project Area Name Town Center I/Bavfront Project Area
Forward from Pdor Year
Bond Type
Year of Authorization
Princpal Amount Authorized
Principal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
Principal Amount Unmatured Beglnning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Princpal
Principal Amount Issued Dudng Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmaturetl End of Fiscal Year
Principal Amount In Default
Interest In Default
City/County Debt
ts7a
4,996,970
4,996,970
Operations
1974
2024
$4,996,970 ~..
_,__ 175,718
~_
~ 472, 9472, 5655
I I
$4,699,733
I~
i
Bond Types Allowed:
Tax Allocation Bands; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authodty Bonds; City/County Debt; US;State;
Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Omer
- ~ ~'~
- ~,
~.,,_. rte d <_ ~,' ,',
Agency Long-Term Debt
CO
I
N
O
Fiscal Year
Project Area Name
Forward from Prior Year
Bond Type
Year of Authorization
Principal Amount Authorized
Prinripal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
1.2070 ^I
Town Center II Otav Vallev Southwest Mercted Project Areas
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made Dudng Year
Adjustment F~cplanation
Interest Added [o Pdncipal
Principal Amount Issued Dudng Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interns[ In Default
Bond Types Allowed:
Tax Allocation Bonds; Revenue Bonds; Certifiptes of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State;
Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensagon; Other
2,309,88)
~~
.__ $19,602,721
._ -._._
';Cityl000n[y Debt
1978
61,469,934
61,489,934'
~s°j RM atL ~ M~ ~~ "f4'~ ~
i
~ 4da$F~ 8~e or~Si `~Ap ti
' `
`
~'
~ 3t
?"~
ems
Z~~ ~ lb»q(' ~.~~ ..r,id~~
-d -~ 4 F 1 i ,.~ Ci qy tf tt ~ ~e v .~.~ -'V6~
t`
!x
~d
l
,
¢
f~ :
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~
~/
~
~ ' 4
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>
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Py ~ Ill `mil
b 1 ~S di
µ, 1T9
~ ~~y 3i~
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. 5 _ ~N 14 ~~~ia 4....
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Agency Long-Tenn t~bt
CD
I
N
Fiscal Year
Project Area Name
Forward from Prior Year
Bond Type
Year of Authorization
Principal Amount Authorized
Principal Amount Issued
Purpose of Issue
010
own Center UBa front Project Area
Maturity Date Beginning Year
Maturity Date Ending Year
Loans
2005
307,161,
To Fund FY 04-05 ERAF Payment to [he
!County of San Diego
$255,601 '.
I ~
I __
37,950
$217,651
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued Dudng Fiscal Year
Principal Amount Matured During Fiscal Year
PrincipalAmount Defeasetl Dunng Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest In Default
Bond Types Allowed:
Tax Allocation Bonds; Revenue Bonds; Certificates of Panicipation; Tax Allocation Notes; Financing Authodty Bands; City/County Dabt; US;State;
Loans; Lease Oblgadons; Notes; Deferred Pass-Throughs; Deferred Compensation; O[her
I
Agency Long-Term Debt
Fiscal Year 2010
Project Area Name Town Center II. Otav Vallev Southwest Merfaed Project Areas
CD
I
N
fn
N
Forxard from Prior Year ~1~".
Bond Type Loans
Year of Authorization I 2005
Principal Amount Authorized 377,839
Principal Amount Issued ~ 377,839
Purpose of Issue o Fund FY 04-05 ERAF Payment to the
County of San Diego !
Maturity Date Beginning Year 2005
Maturity Date Ending Year ~ 2015
Principal Amount Unmatured Beginning of Fiscal Year ~_ , $249,398
Adjustment Made During Year I
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued During Fiscal Year C~
Principal Amount Matured During Fiscal Year 37,050
Principal Amount Defeased During Fiscal Year 0
Principal Amount Unmatured End of Fiscal Year $212,348
Principal Amount In Default 0
Interest in Default
Bond Types Allowed:
Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State;
Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; O[her
~~a~~'~ * i 1
Agency Long-Term Debt
CD
N
W
Fiscal Year
Project Area Name
Forward from Pnor Year
Band Type
Year of Authorizatlon
Principal Amount Authodzed
Principal Amount Issued
Purpose of Issue
2010
Town Center I/Bayfront Project Area
Matudty Date Beginning Year
Maturely Data Ending Year
Loans
To Fund FY 05-06 ERAF Payment to the
County of San Diego
$44e.gto
63,635
._. $394,375 _.,
0
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issuetl During Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest In Default
Bond?ypes Allowed:
Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authortty Bonds; Ciry/County Debt; US;State; ~
Loans; Lease Obligations; Notes; Defened Pass-Throughs; Deferred Compensation; Other
s d
, t 9' P
4a k~ ~ ! 'a:T xNihtT' .. ~ n n u.w. .. w. ~ w x. u- ~ Pe .-iF u. '~+». ~~ ,
~~~ .±F _
Agency Long-Tenn Debt
Fiscal Year 2010
Project Area Name Town Center II Ota Valle Southwest Merged Protect Areas _
Forward from Prior Year
Bond Type Loans j
Year of Authorization 20061
Principal Amount Authorized 343,170
Principal Amount Issued 343,170
Purpose of Issue To Fund FY 05-06 ERAF Payment to the
o
County of San Dieg
Maturity Date Beginning Year 200
Maturity Date Ending Year 2016
Principal Amount Unmatured Beginning of Fiscal Year $261,990
~ Adjustment MadeDudng Year
N Adjustment Explanation
N
~' Interest Added to Principal 0
Pdncipal Amoun[ Issued During Fiscal Year 0
Principal Amount Matured During Fiscal Year 31,365
Principal Amount Defeased During Fiscal Year
Prnnclpal Amount Unmatured End of Fiscal Year $230,625
Principal Amount In Default j
Interest In Default ~~i
Bond Types Allowed:
Tax Allocation Bonds; Revenue Bontls; Certificates of Panicipation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; U$;Stafe;
Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other
y
~
t 5 ~
rt. ~ .. ~t.+ .. ~ m ,9
eq t
~~f ~,~~iA.i. ~.
Agency Long-Term Debt
CD
N
rrl
Fiscal Year
Project Area Name
Forward from Pdor Year
Band Type
Year of Authorization
Principal Amount Authorized
Principal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Data Ending Year
Izo~o
Town Center 1/Ba front Pro'ect Area
Principal Amount Unmatured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal -
PrincipalAmount Issued Dudng Fiscal Year
Princpal Amount Matured During Fiscal Year
Princpal Amount Defeesed During Fiscal Year
Principal Amount Unmatured Entl of Fiscal Year
Principal Amount In Default
Interest In DefauH
Bond Types Allowed:
Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; City/County Debt; US;State;
Loans; Lease Obligations; Notes: Deferred Pass-Throughs; Deferred Compensation; Other
~, s~5z~ ti~°,~~
Sfax Allocation eontls
2006
13,435,000
13,435,000
o refinance the 199a Tax Allocation
Bonds Sedes A
i
~Op
I
$72,100,,000
~I
5 1~.._ i ~:~4`~~r'',c dF~"~IS_~~E~~r~~~i trl§"~~~ ~~ »{a~r~~~-x "' ?'x_, K x~, '~ ~ ~~ 9._`~
. ~„ . ~~'t A4'S° _ ~~_
,yy~ s '
a8~~3?t5. xiefx3~'~'~$~s"e,'yY~~~~~~.,.,.u, ~ ~ ~ ~,,.,., `~ a~~rsrladv~'4:
Agency Long-Term Debt
fD
I
N
O)
Fiscal Year
Project Area Name
Forward from Prior Year
Bond Type
Year of Authorization
Principal Amount Authorized
Principal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
•2010
own Center UBa ront Proiect Area
Principal Amount Unmafured Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued Dudng Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest In Default
Bond Types Allowed:
Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Authority Bonds; CitylCounty Deht; US;State;
Loans; Lease Obligations; Notes; Deferred Pass-Throughs; Defened Compensation; Other
Tax Allocation Bonds
2006
12,325,000
12,325,000
&oDrefund 94 Tax Allocation Bands Ser C
~ 200T
2027;
$77,625,000
I
425,000
$11,200,000 '~
~~
~`-Li ~MAHl3TAV9YFF49.fim $ 3 _ n.u ~ o a w. -e - I.. . - x tk~ ~.
Agency Long-Term Debt
f0
I
N
rJl
J
Fiscal Year
Project Area Name
Forward from Pdor Year
Bond Type
Year of Authorization
Principal Amount Authorized
Pdncipal Amount Issued
Purpose of Issue
Maturity Date Beginning Year
Maturity Date Ending Year
2010
Town Center II Ota Valle Southwest Mer ed Pro ect Areas
Principal Amount Unmaturrrd Beginning of Fiscal Year
Adjustment Made During Year
Adjustment Explanation
Interest Added to Principal
Principal Amount Issued During Fiscal Year
Principal Amount Matured During Fiscal Year
Principal Amount Defeased During Fiscal Year
Principal Amount Unmatured End of Fiscal Year
Principal Amount In Default
Interest in Default
Bond types Allowed: ',
Tax Allocation Bonds; Revenue Bonds; Certificates of Participation; Tax Allocation Notes; Financing Author6y Bonds; City/County Debt; US;State; ~~'
Loans; Lease 061igations; Notes; Deferred Pass-Throughs; Deferred Compensation; Other I,
ITax Allocation Bonds
i 2006
21,625,000
~- 21,625,000
rro refund the 2000 Tax Allocation Bonds
014
2036
$21625,000 !
$21,625,00_0
0
Low/Moderate Special
Capital Project Debt Service Income Housing RevenuelOther
Funds Funds Funds Funds Total
fD
I
N
fJt
DD
Tax Increment Gross
(Include All Apportionments)
Specal Supplemental Subvention
Property Assessments
Sales and Use Tax
Transient Occupancy Tax
Interest Income
Rental Income
Lease Income
Sale of Real Estate
Gain on Land Held for Resale
Federal Grants
Grants from Other Agencies
Bond Administrative Faes
Other Revenues
Total Revenues
~ 4 580,034 _ $4 580,034
Fiscal Year '2010 ____._,
Proiect Area Name Town Center IlBavfront Proiect Area
$4,596,239 $98,746 ~ $1&4,473 $0 $4,879,458
Low/Moderate Special
Capital Project Debt Service Income Housing Revenue/Other
Funds Funds Funds Funds Total
c0
N
N
cC
Tax Increment Grass
(Indude All Apportionments)
Special Supplemental Subvention
Property Assessments
Sales and Use Tax
Transient Occupancy Tax
Interest Income
Rental Income
Lease Income
Sale of Real Estate
Gain on Land Held for Resale
Federel Grants
Grants from Other Agencies
Bond Administrative Fees
Other Revenues
Total Revenues
9,304,604 $9,304,604
Fiscal Year 2010
Protect Area Name Town Center II, OWy Valley, Southwest Mersted Protect Areas
$10,112,932 $3,308 $0 - $0 $10,116,240 '.
Capital Projeet Debt Service LowlModerate Special
Funtls Funtls Income Housing RevenuelOther Total
rD
I
N
T
O
Administration Costs
Professional Services
Planning, Survey, and Design
Real Estate Purchases
Acquisition 6epense
Operation of Acquired Property
Relocation Costs
Relocation Payments
Site Clearance Costs
Project Improvement / ConsWUion Costs
Disposal Costs
Loss on Disposition of Land Held for
Resale
237 777 407 577 _ _ $645,354 -;
213 032 5 381 157,739 $276,152 -.
r
I ~~.:
_ $0
0,,
..____w___.._...$ __
5,089 $5 089.
_..... _...._.._....a ...,
$0
12,327 __ _ _ _ 512,327 _
-
$0
--
I 93 887 $93,887
~ $p
,
_
$0
S£atertlenM,oj{f4S'o, ma en`'Q t<itpeDditutps ~XPand+~~ ` ~ ' a , i~r P(19~!a~+ ~ ~ r wi r ~i ~~ i o ~ 1Pl'IY205II.
.:~[I: ~ v~._,.~C •.~i ..m ~,,..,. -...,~ ., ... ~1~~ ~w..:... _.. a .wuvu J. ~_ „~,_.~ ..~...,....~'~.~a r.. ,.•wN ., ,.L _w..-..~...•. 't>
°~• ~: ' ,r S ' r i ; i $fafemetYt k)f {rye, '@ attld,EXp'en(~ltu~~S ~0~1„~IR'e5 i ~; '+ •~ , i.
Fiscal Year j2010
Project Area Name own Center I/Ba ront Pro ect Area
Capital Project Debt Service LowlModerate Special
Funds Funds Incomo Housing RevenuelOther Total
fO
I
N
T
J
Decline in Value of Land Held for Resale I '. $0
Rehabilitation Costs i $0 '
Rehabil@adon Grants 'I I $0 '.
Interest Expense ~ ~ 1,323,805 ~' $1,323,805
Fixed Asset AcquisRions I $0,_,
Subsidies to Low and Moderate Income $0
...._.__.. _..__. . _.....
Housing
Debt Issuance Costs $0 i
Other Expenditures Including Pass- 1,779,289 $1,779 289
Through Payment(s)
Debt Principal Payments:
Tax Allocation Bonds and Noles 905,000 $905,000 '.
Revenue Bonds, Certificates of I _ _ _ $0 _'
Participation, Financing Authority
Bonds
CitylCounty Advances and Loans 472,955 _ _, .$472,955 _::
All Other Long-Term Debt :. 91,585 ,$91,585.,
Total Expendltures .$2_336 312 _ __ __.$2 798 726. _ $47D 405. _ $0_: _ $5,605,443
Excess (Deficiency) Revenues over . , ,,,,, $2 259 927 .. . ($2 699 980)_. ($285 932)„ _ , _-.. $0 ($725,985)._...
(under) Expenditures
$t8~e({4eDkotlrScPfnararrd ExpeadljG2$ ~S",e}lditwes !, r Pa~e!2 ` " ,. ' ! ri ~ ~;, ~ 12hIMUID
.~,1~ .. ~i .~... r.4 t ,..u e~ emu. Jul s 1..~., -~.c,. a.w w. _ ~ ... ..aw u.. ,a~.._.~> ~. i_ ~ ~~. ~.~ r.. i. u.~u , .. _.. ,..
r
`°~n ~ Stater~H~6f"Iricrittlieai+er(~^+yPendttt~~;T~"ikpOrlfC1`itufes~ ~ "` ~ ' I '~
_ . ... ..... ... .~, ~, .~...,,;-,~. ~ w~. f ~- ~~..~.. „ W.i . ,s ~~ . , ..
Fiscal Year j2O1O u,
Project Area Name 'Town Center ItBavfront Proiect Area
Capital Project Deht Service LowlModerate Special
Funds Funds Income Housing RevenuelOther Total
_
Administration Costs 1082915 _..._
$1,082,915
Professional Services 194,984 2,475 _. $197,459.__..,
Planning, Survey, and Design ~ ~~. _$~
Real Esta[e Purchases .. __ ,_ $~
tp Acquisition F~cpense i ~ _ _.__ SO '
N Operation of Acquired Property t -~-~ SO _
~ Relocation Costs
N
$D _
Relocation Payments $0 '
Site Clearance Costs $~
ProjeU Improvement I ConstruUion Costs ' 1 518 386 $1,518,386
Disposal Costs - SO '
Loss on Disposition of Land Held for $0
Resale
$Eat@meittQf jnGPRrd'dnd~F~p'@ndrtgT65; ;'ddduie$' ;j ' PaJe,~3 ~ %~ ,, i2/1)20t0 :i
+ i I l 1 U ' 1~ IYf Al (:~~
~• ' ~ ~ i,~ ~ nS~}t~nl~n~'O# {~1F.Q~t}e~artd~kt.??~dTtPfe~ EX~T1C}i#lYfe54 ` . ~} t . . 7 ~ .. ~
., it7 i _ ... ..' '' ~. ._ ., .._ .,.., ...~ t ..~.._ , .', ,.
Fiscal Year 2010
Project Area Name Town Center II Ota Valle Southwest Me ed Project Areas
Capital Project Debt Service LowlMOderate Special
Funds Funds Income Housing Revenue/Other Total
c0
I
N
01
W
Decline in Value of Land Held for Resale $0
Rehabilitation Costs
Rehabilitation Grants
Interest Expanse
Fixed Asset Acquisitions
Subsidies to Low and Moderate Income
Housing
Debt Issuance Costs
Other 6cpanditures Inclutling Pass-
Through Payment(s)
Debt Principal Payments:
Tax Allocation Bonds and Notes
Revenue Bonds, Certificates of
Participation, Financing Authority
Bonds
City/County Advances and Loans
All Other Long-Term Debt
Total Expenditures
Excess (Deficiency) Revenues over
(under) Expenditures
$0
1,930,681 ~----~Y$1,930,681
$0
$0
i i _..._..._......__._. $Q_".
4,922,440 $4,922,440
$0
~ ~ $0_,
2,309,687 $2,30_9,887
68,415 $68,415 '.
$7,718725 $4311458__, ,,. _,,.,,,,._._ $0 ,_____, „$0__ $12,030,183„_,
_ $2,394,207 .,.,.,,,($4,308150).... __ _. $0 $0 ($1,913,943) _
~ l
gte~emtlp'4bf14~cpjdc~ntkbXp2pditbtes EXjtehdBNres ~ PaO2rj +`~ ~ ~ ' 92!1{2010,!
i
~: i .,., e..,__, ,. ...__~~ .~t .._., a -,-, .. _,. .. ~. ,, i6 _n~ .i,. ~.,, ~ ur ,.. ice . ... ... ... .. ..... .
~,
- ,,~ sr~_+ker~erl~~FAn~,m~~~~~~a~,~adu~m ~?~~~~es ~ r
~. , ~. . ~~ -... ~. ~ ~.~~ _~u ,. .
Fiscal Year 12070 ~^
Project Area Nama Town Center II Otav Valley Sotrthwest Merged Protect Areas
Capital Protect Debt Service Low/Moderate Special
Funds Funds Income Housing RavenuelOther Total
Proceeds of Long-Term Debt ~ _ 1 _ _.. $4
~
Proceeds of Refunding Bontls ~ $0
Payment to Refunded Bond Escrow Agent $0~
Advances from City/County ~ 175 718 $175,718
Sale of Fbred Assets ' $0
~ Miscellanecus Financing Sources (Uses) 33,527 -232,172 ($198,645)
pN1 Operating Transfers In 1 336 430 ~ 1,690,863 $3 027,293
~ Tax Increment Transfers In ~ ~ 816,007 ~ „ $916 007 _'
Operating Transfers Out 1,690,863 1,336,430 i ,$3,027 293 _
Tax Increment Transfers Out 916,007 - _ $916 007 .',
{To fhe Low and Moderate Income Housing Fund)
Total Other Financing Sources(Uses) ,,,,, ,..($1270440)_, _,.$563,678, _.__ $683835 ~. ,_.._._ SO __, ($22x927),.
.. ''~tatemertt~ofincom~atd~~>fa`isnrltfuts~~°'btkie'nf3rranran9`Sdr~rces
Fiscal Year 2010
Project Area Name Town Center I/Ba front Project Area
Project Area Name Town Center I/Bayfront Proiect Area
CapitalProJect Debt Service Low/Moderete Special
Funds Funds Income Housing Revenue/Other Total
N
07
Excess (Deficiency) of Revenues and _ . _ _ $989 487 - ($2,136,302) . _ . $397,903 $0 . ($748,972) '.
Orher Financing Sources over
Expenditures and Other Financing Uses
Equity, Beginning of Period ,,,,,,,,,,,,,$2 818,304,,,,,. $2,787,474 _ „ ,,...,. $4 639 871 __ _ ,_ _„ _, ,., $0_ , , _$10,245 649_„
Prior Period Adjustments 0'
Residual Equtty Transfers i $0
Equity, End of Period
,,,.,__$3,807791._.. $651,172 ___5,037,774 $0 $9,496,737_...
Fiscal Year 2010
tD
I
N
Ot
T
Project Area Name Town Center II Ota Valle Southwest Mer ed Pro ect Areas
Capital Project Debt Service Low/Moderate Special
Funds Funds Income Housing ftevenue/Other Total
Proceeds of Long-Term Debt i ~ $0
Proceeds of Refunding Bonds ~ $0
Payment to Refunded Bond Escrow Agent ~ _I,, _,.,$0.
Advances from City/County 696,462 $696,462.
Sale of Fixed Assets ~ _ $0
Miscellaneous Financing Sources (Uses) -1,127,386 -33,527 „ _., ($1,160,913),
Operating Transfers In 4,163,160 I 2,843,260 _ $7 006,420
Tax Increment Transfers In ~-1,860,92 _$1,860,921
Operating Trensfers Out 4,182,156 ~I 2,824,264 ! $7,006,420
Tax Increment Transfers Out 18fi0,921 „$1860,921 _.
(To the Low and Moderate Income Housing Fund)
TotalOther Financing Sources (Uses) --
.._._,($3007,303)
_ $681,931
$1860,921
$0 _.,_ .($464451)__:
,m. _ _
, rt- n
' Statement of incomesand Fxpendi~ures ~3th~~' Ffr(aiicing Sources
Fiscal Year .2010
Project Area Name (Town Center II, Otav Vallev, Southwest Merged Project Areas
Capital Project Debt Service Low/Moderate 3peclal
Funds Funds Income Housing RevenuelOther Total
r0
I
N
J
Ezcess {Deflciency)of Revenues and ,,....,_._($613,096)_, ($3,626,219] ,,,__$1860,921.,.,. _ _..__ $0 ,,.,,..,,,($2378,394)_.:
Other Financing Sources over
Expenditures and Other Financing Uses
Equity, Beginning of Period _.,,.. $5 686,238,_..: _. ($2,564,783) _...,$7.282 479 .....,_ $0 ,$10,403 934
P[ior Pariod Atljustments j _ _ $0 '.
Residual Equity Transters ~ $0
Equity, End of Period
..,,,,..__,$5073,142_ ,.._.($6:191002) _, $9,143,400_,.., _______ $0 .___$6,025,540
cp
I
N
T
Fiscal Year 2010
Capital Projects
Funds Low/Moderate
Debt Service Income Housing
Funds Funds Speclal
RevenuelOther General Long- Gene21 Fixed
Funds Term Debt Assets
Total
Assets and Other Debits
Cash and lmprest Cash ,,,,,_, $0 _~.
Cash with Fiscal Agent 3 654,134 3,573,718 614,769 $7,842 621 -.
Tax Increments Receivable 887,011 $887,011
Acccunts Receivable 493 163 $678 -:
Accrued Interest Receivable 8957 987 18,163 $26,107 ;
Loans Receivable - ~ 4.953,565 ~ 24,780,810 n $29,734,375 ;
Contracts Receivable j ~ ~ _, ._ ,. ~ ___ $0,_,,.
Lease Payments Receivable ~ "-' $0 '
Unearned Finance Charge ' $0
Due from Capital Pmjects Fund I ~ $0 _..
Due from Debt Service Fund ~ ''~ I ~ s~ $0
Due from LowlModerate I ~I .~-,. $0
Income Housing Fund
Due from Special ~ ~ __ _ $0_,,,,
Revenue/Other Funds
' r $slaneeSheat='.~sets~antlQthe~~ebtfs '
~~t~nee 9hee4 -;.{Asses and`Dther Dalvts
LowlMOderete Special
Fiscal Year 2010 CaPitai Projects Debt Service Income Housing RevenuelOther General Long- General Fixed
Funds Funds Funds Funds Tenn Debt Assets To[al
Investments 3,344,108 ~ 3,880 ~ 7,125,732 ~ w -, ~ $10,473,720 I,
Other Assets ~ $0.
Investments: Land Held for
~ $0
~
Resale ~"
Allowance for Decline In $0
~
-
Value of Land Held for Resale ~-----------
CO Fixetl Assets: Lantl, I 12,177,195 $12,177,195
I Structures, and Improvements '
N '
~ Equipment
cO 11,999 $11,999
~
Amount Available In Debt 5,098,617 $5,098,617 -:
Service Fund ___. __...___.___.._._.
Amount to be Provided for 65,183,836 $65183 836
--~
Payment of Long-Term Debt
Total Assets and Other $72,848,268 $3,578,585 ~ $32,539,657 $0 $70,282,453
._..... ........ $12,189,194 $131,x38,157
.. _...
DebHs
(Must Equal Total Liabilities,
Other Credits, end Equities)
- LowlModerate Spacial
Fiscal Year 2010 Capital Projects Debt Service Income Housing Revenue/i?ther General Long- General Fixed
Funds Funds Funds Funds Term Debt Assets Total
Liabilities and Other Credits
Accounts Payable
Interest Payable
Tax Anticipation Notes Payable
Loans Payable
Other Liabilitles
Due to Capital Projecs Fund
Dua to Debt Service Fund
Due to LowlAAoderate
(D Income Housing Fund
I
IV Due to Special
J Revenue/Other Funds
O
Tax Allocation Bonds Payable
Lease Revenue, Certificates of
Participation Payable,
Financing Authority Bonds
All Other Long-Term Debt
Total Liabilities and Other
Credits
~ i [ a e n t w x u ~e ~ th i ~~a n ~~ , ~ li
I $0
44,925,000 $44,925,000
$0
CD
I
N
J
J
Fiscal Year 2010
Equities
Investment In General Fixed
Assets
Fund Balance Reserved
Fund Balance
U preserved-Designated
Fund Balance
Unreserved-U ndesignated
Total Equities
Total LlablliUes,
Other Credits, and
Equities
Low/Moderate Special
Capital Projects Debt Service Income Housing RevenuelOther General Long• Generel Fixed
Funds Funds Funds Funds Term Debt Assets Total
12,189,194 $12,189,194 '.
~ 3,884,511 3,578,585 5,708,065 $13,171,161 '.
3 810 275 ' i 8 473 109 ~- "r` '" $12 283 384
1,186,1471 -9,718,415, _,.($7,932,268)_'.
__,_$8,880,933. ($5,539,830) _$14,181,174 .,,__.50__ $12,189,194 529,711471 ___
$12,848,268 $3,578,585 $32,539,657 $0 $70,282,453 $12,189,194 $131,438,157
;' ` BZI('~tjG~ Sheet 1,st5t~1~1~8 a1htl;bttl~C~CT r4'~t~ , . r~ ?; ~ ;1, ~,
Fiscal Year ,,..,, , '-:'~
. , ...~....,..,.... b~
Operating Transfers In
Tax Incremern Transfers In
Operating Transfers Out
Tax Increment Transfers Out
$10,033,713 '.
$_2,776,928 '
$10 033 713 ,~:
._.........,52_776928 __!
Fiscal Year ' ~ , -~
Operating Trerrsfers In
Tax Increment Transfers In
CD
I Operating Transfers Out
N
v Tax Increment Transfers Out
N
$10,033,713 '~-
$2 776 928
_.. $10,033,713_,y
,._ __$2776,928 f
Fiscal Year ~-„ s 20'id~'i
Operating Transfers In $10 033,713
.._
Tax Increment Transfers In _ 52,776,928 S
Ope2ting Transfers Out _$10,033,713_.;
Tax Increment Transfers Out _„ _52776,928 - ~~
FISw1 Year .1 ~ 12070E
Operating Transfers In
Tax Increment Transfers In
Operating Transfers Out
___ _
$10,033,713 ':I
_ __,_$2,776,928 ~~.
$10,033713 '[
_....,~......_.......s....,,m.,.
California Redevelopment Agencies -Fiscal Year 2 0 0 912 01 0
Status of Low and Moderate Income Housing Funds
Sch C Agency Financial Summary
CHULA VISTA
r0
N
J
W
Adjusted Project Agency Net Other Total `Unen- Unen- ~ Unen-
Beginning Area Other Total Resources Housing Housing Encum- cumbered cumbered cumbered
Balance Receipts Revenue Expenses Available Fund Assets Fund Assets brances Balance Designated Not Dsgntd
$10,271,808 $3,064,573 $0 $4,863,271 $8,473,110 ;6,342,909 514,816,079 $7,248. ;8,465,862 $4,000,000 $4,465,862
Expenses
2009/201 C
Housing Other Planning and Property Transfers Out of Total
Construction Administration Acquisition Agency
Costs
$15,520 $4,160,694 $565,365 $5,089 $116,603 $4,863,271
`The Unencumbered Balance is equal to Net Resources Available minus Encumbrances
Nate: Print this report in Landscape Orientation (Use the Print Icon just above, then Properties then Landscape)
Page 1 of 1
12120/10
California Redevelopment Agencies - Fiscal Year 2009/2010
Status of Low and Moderate Income Housing Funds
Sch C Agency Financial and Program Detail
CHULA VISTA
- Beginning Balance
Adjustment to Beginning Balance
Adjusted Beginning Balance
Total Tax Increment From PA(sl $2,776,926 Total Receipts from PA(s)
Other Revenues not reported on Schedule A
- Sum of Beginning Balance and Revenues
$10,228,516
$43,290
$10,271,608
$3,064,573
$0
$13,336,381
Expenditure
Item Subitem
Housing Construction
Subtotal of Housing Construction
Other
Subtotal of Other
Planning and Adminlstratlon Costs
Administration Costs
Professional Services
Subtotal of Planning and Administration Costs
Property Acquisition
Operation of Acquired Property -
Subtotal of Property Acquisition
Transfers Out of Agency
Amount Remark
$15,520
$15,520
$4,160,694 Loan to
Redevelopment
Agency forFY0914
payment of ERAF
ShIR (H&S 33690).
$4,164,694
$519,579
$45,786
$565,365
$5,089
$5,989
Page t of 3
12/20M 0
9-274
California Redevelopment Agencies - Fiscal Year 2 0 0 912 01 0
Status of Law and Moderate Income Houstng Funds
Sch C Agency Financial and Program Detail
CHULA VISTA
Expenditure
Item Subitem Amount Remark
Transfers Out of Agency
Other $116,603 To correct a loan
repayment
erroneously deposite
to the Low &
Moderate Income
Housing Fund.
Subtotal of Transfers Out of Agency $116,603
Total Expenditures $4,863,271
Net Resources Available $8,473,110
Indebtedness For Setasides Deferred $634,844
Other Housing Fund Assets
Cateaorv Amount Remark
ERAF Loans Receivable(all years) $4,160,694
Loan Receivahle for Housing Activftles $1,484,171
her $7,248 Restricted Cash.
Residual Reeelpt Loans $55,952
Total Other Housing Fund Assets $5,708,065
Total Fund Equity $14,816,019
2005/2006 $t988228
2006/2007 $2294709 sum of 4 Prevlous Years' Prior Year Ending Excess Surplus for
2007/2008 $2758666 Taxlncrementfor2009/2010 Unencumbered Balance 200912010
2008/2009 $2756337 $9777940 $10,177,981 $400,041
Sum of Current and 3 Previous Years' Tax Increments
Adjusted Balance
Excess Surplus for next year
Net Resources Avallable
Unencumbered Designated
Unencumbered Undesignated
Page 2 of 3 12120/t0
$10,586,640
$8,465,862
$0
$8,473,110
$4,000,000
$4,485,862
9-275
California Redevelopment Agencies - Fiscal Year 2009I2o10
Status of Low and Moderate Income Housing Funds
Sch C Agency Financial and Program Detail
CHULA VISTA
_ Total Encumbrances
Unencumbered Balance
Unencumbered Balance Adjusted for Debt Proceeds
Unencumbered Balance Adjusted for Land Sales
Excess Surplus Expenditure Plan
- Excess Surplus Plan Adoption Date
$7,248
$8,485,862
$0
$0
No
Site Improvement Activities Benefiting Households
Income Level Low Verv Low Moderate Total
Land Held for Future Development
Site Name Num Of Zoning Purchase Estimated
Acres Daie Start Date Remark
Use of the Housing Fund to Assist Mortgagors
Income Adjustment Factors ~ Requirements Com Pleted
Home ~ Hope
Non Housing Redevelopment
Funds Usage
Resource Needs
LMIHF DepositslWlthdrawls
Document Document Custodian Custodian CoPV
Name Data Name Phone Source
Achievements
Description
Page 3 of 3 72120/10
9-276
California Redevelopment Agencies-Fiscal Year 2 0 0 912 01 0
Project Area Contrihutions to Low and Moderate Income Housing Funds
Sch A Protect Area Summary Report -
- CHULA VISTA
Tax Incr. Percent Total
Project Area 100°h of Tax 20%Set Aside Tax Increment Amount Amount Deposited to of Tax Repayment Other Deposited to
Increment Requirement Allocated Exempted Deferred Hsng Fund Incr Dep Deferrals Income Housing
BAYFRONT TOWN CENTER 1 $4,580,034 $916,007 $916,007 $0 $0 $916,007 20.00% $0 $287,645 $1,203,652
MERGED PROJECT AREA $9,304,604 $1,860,921 $1,860,921 $0 $0 $1,860,921 20.00% $0 $~0 $1,860,921
Agency Totals: $13,884,638 $2,776,928 $2,776,928 $0 $0 $2,776,928 20.00%
CD
N
J
v Note: Print this report in Landscape Orientation (Use the Print Icon Just above, then Properties then Landscape)
$0 b287,645 $3,064,573
Page 1 of 1 12/01/10
California Redevelopment Agencies-Fiscal Year 2 0 0912 01 0
Protect Area Contributions to Low and Moderate Income Housing Fund
Sch A Project Area Financial Information
Agency CHULAVISTA
Address 276 FOURTH AVENUE -
CHULAVISTA CA 91910 __
Project Area BAYFRONT TOWN CENTER I
- -- - - - -
- --------_-_-------------------_-----
-- TYPe: Inside Protect Area -~- _------ Status: Active-~-_~
Plan Adoption: 1974 Plan Expiration Year: 2029
Gross Tax Calculated Amount Amount Amount Total % Cumulative
Increment Deposit Allocated Exempted Deferred Deposited Def.
$4,580,034 $916,007 $916,007 $0 $0 $916,007 20.00% $0
Repayment $0
Cateoory
Interest Income $165,375
Loan Repayments $103,772
Other Revenue $1,213
RentalfLease Income $17,885
Total Additional Revenue $287,645
Total Housing Fund Deposits for Protect Area $1,203,652
~rojectArea MERGED PROJECT AREA
Type: Inside ProJecl Area Status: Active
Plan Adoption: 1978 Plan Expiration Year: 2034
Gross Tax Calculated Amount Amount Amount
Increment De osit Allocated Exempted Deferred
$9,304,604 $1,860,921 $1,860,921 $0 $0
Repayment
Category
Total Additional Revenue
Total Housing Fund Deposits for Protect Area
Total % Cumulat[ve
Deposited Def.
$1,860,921 20.00% $0
$0
$0
$1,860,921
Agency Totals For All Project Areas:
Gross Tax Calculated Amount Amount Amount Total % Cumulative
Increment D¢pOSit Allocated Exempted Deferred Deposited Def.
$13,884,838 $2,776,927.6 $2,776,928 $D $0 $2,778,928 20% $0
Page 1 of 2
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9-278
California Redevelopment Agencies- Fiscal Year 200912010
Project Area Contributions tv Low and Moderate Income Housing Fund
Sch A Project Area Financial Information
Total Additional Revenue from Projee Areas: $287,645
Total Deferral Repayments: $0
Total Deposit to Housing Fund from Project Areas: $3,064,573
Page 2 of 2 72/01/70
9-279
California Redevelopment Agencies - Fiscai Year 2009!2010
Sch AIB Protect Area Program Information
CHULA VISTA
eject Area: OUTSIDE PROJECT AREA
FUTURE UNIT CONSTRUCTION------------- -- - ----------- - -- - -- - - -------- ------------- ----------
.-- Estimated
Execution Completion
Contract Name Date Date Verv Low Low Moderate _ Total
CIC Landings II 06/09/D9 06/30/10 143 0 0 143
SBCS-Trenton 03/23/10 02!15/11 7 0 0 7
SD Housing Corp-Colorado 03/30/10 10/01/10 2 0 0 2
SD Housing Corp-Glover 04/05!10 10/01/10 4 0 D 4
Page 1 of 1
12101/10
9-280
California Redevelopment Agencies -Fiscal Year 2 0 0 912 01 0
Sch D General Project Information
CHULA VISTA
Project Area Name: OUTSIDE PROJECT AREA
Project Name: Community Housing Improvement Program (CHIP)
Address: 276 Fourth Avenue Chula Vtsta 91910
UNIT INVENTORY -- ---------------------------- --------------- -
Verv Low Low Moderate Above Mod Beeame Total
Inellalhle
Other Provided without LMIHF
Unit
Mobilehome Owner, Resident
Non-Agency Owner Elderly 6 7 3 0 0 16
Unit Total 6 7 3 0 0 16
ROJECT FUNDING SOURCE ----'-'""' ------
Fundinm Source Amount
Federal Funds $157,000
Project Name: Homebuyer Program
Address: City Wide Chula 91910
UNIT INVENTORY
Verv Low Low Moderate Above Mod Became Total
Inellaible
Other Provided without LMIHF
Unit
Acquisition Only
Non-Agency Owner Non-Elderly 0 0 2 0 0 2
Unit Total 0 0 2 0 - 0 2
PROJECT FUNDING SOURCE -------
Funding Source Amount
Federal Funds $111,750
Page 1 of 2 72101/10
9-281
California Redevelopment Agencies -Fiscal Year 200912010
Sch D General Protect Information
CHULA VISTA
Page 2 of 2 12/01110
s-2e2
SCHEDULE HCD E
CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES
(This Form is Information Onty: Actual Obligation is based on Implementation Plan)
Report Year: 2009/2010
Agency: CHULA VISTA
NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units
from forms HCD-D7 which are developed in a project area by any entity (agency or non-agencyj.
PARTI
[H & SC Secllcn 33413(b)(S)I
AGENCY DEVELOPED
1. New Units 0
2. Substantially Rehabilitated Units 0
3. Subtotal -Baseline of Units (add line 1 & 2) 0
4. Subtotal of Inclusionary Obligation Accrued this Year for Units (line 3 x 30%) 0
5. Subtotal of Inclusionary Obligation Accrued this year for Verv-Low Income Units (line 4 x 50%)
0
PART II
[H 8 SC Section 33413(6x2)]
NON-AGENCY DEVELOPED UNITS
6. New Units 0
7. Substantially Rehabilitated Units 0
8. Subtotal -Baseline of Units (add lines 6 & 7) 0
9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%)
0
10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%)
0
PART ill
TOTALS
11 . Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 0
12 . Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0
Calif°mia Re°evebpment Aganuee-metal Year 2009/2010
SGredule E (11N1)
'Tdela mey be Impacted by r°unding
Page 1 of 1
1 2/0112 0 1 0
9-2$3
SCHEDULE HCD E7
CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES
(This Form is Information Only: Actual Obligation is based on Implementation Plan)
Report Year: 2009/2010
Agency: CHULA VISTA
Project Area: MERGED PROJECT AREA
Project: COMMUNITY HOUSING IMPROVEMENT PROGRAM (CHIP)
NOTE: This form is a summary of the totals of afl new construction or substantial rehabilitation units
from forms HCD-D7 which are developed in a project area by any entity (agency or nonagency).
PART1 -
[H 8 SC Section 33413(b)(1)]
AGENCY DEVELOPED
1. New Units 0
2. Substantally Rehabilitated Units 0
3. Subtotal -Baseline of Units (add line 1 & 2) 0
4. Subtotal of Inclusiona Obli atlon Accrued this Year for Units line 3 x 30%) 0
5. Subtotal of Inclusionary Obligation Accrued this year for Verv-Low Income Units (line 4 x 50%) D
PART II
[H 8 SC Section 33473(bx2)]
NON-AGENCY DEVELOPED UNITS
6. New Units 0
7. Substantially Rehabilitated Units. 0
8. Subtotal -Baseline of Units (add lines 6 & 7) 0
9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0
10. Subtotal of Inclusionary Obligation Accrued this year far Very Low Income Units (line 9 x 40°/D) 0
PART III
TOTALS
11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 0
12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0
Califwnla Pe°avelopmantAgencea-Flety Vear 20092010
SchaOala E (11101)
Tomis may De impadaU Dy raun,]ing
Page 1 of 4
1 210112 0 1 0
9-284
SCHEDULE HCD E1
CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES
(This Form is Information Only: Actual Obllgation Is based on Implementation Plan)
Report Year: 2009/2010
Agency: CHULA VISTA
ProjedArea: MERGED PROJECT AREA
Project: LOS VECINOS
NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units
from forms HCD-DT which are developed in a project area by any entity (agency ornon-agency).
PARTI
(H 8 SC Section 33413(6)(1)]
AGENCY DEVELOPED
1. New Units 0
2. Substantially Rehabilitated Units 0
3. Subtotal -Baseline of Units (add line 1 & 2) 0
4. Subtotal of Inclusions Obllgation Accrued this Year for Units (line 3 x 30%) 0
5. Subtotal of Inclusionary Obligation Accrued this year for Verv-Low Income Units (line 4 x 50%) 0
PART II
(H 8 SC Section 33413(6)(2)]
NON-AGENCY DEVELOPED UNITS
6. New Units 0
7. Substantially Rehabilitated Units 0
8. Subtotal - Baseline of Units (add lines 6 8 7) 0
9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0
10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0
PART III
TOTALS
11. Total Increase in Inclusionary Obligations During Thls Fiscal Year (add line 4 & 9) 0
12. Total Increase in Very Low Income Units Inclusionary Obligations During This Fiscal Year (add line 5 & 10) 0
Calif°Ma R°tlevelopment Agenries-Fiscal Yaer 2(1092010
ScheEUle E (11/pt)
Tolals may be impacletl by mantling
Page 2 of 4
12/01/2010
9-285
SCHEDULE HCD E1
CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES
(This Form is Information Only: Actual Obligation is based on Implementation Planj
Report Year: 2009!2010
Agency: CHULA VISTA
ProjectArea: MERGED PROJECT AREA
Project: MAIN PLAZA
NOTE: This form is a summary of the totals of all new construction or substantial rehabilitation units
from forms HCD-D7 which are developed in a project area by any entity (agency ornon-agency).
PART!
[H & SC Secflon 33413(6)(1)]
AGENCY DEVELOPED
1. New Units 0
2. Substantially Rehabilitated Units 0
3. Subtotal -Baseline of Units (add line 1 & 2) 0
4. Subtotal of Inclusionary Obli anon Accrued this Year for Units (line 3 x 30%) 0
5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0
PART II
(H 8 SC Section 33413(6x2)1
NON-AGENCY DEVELOPED UNITS
6. New Units 0
7. Substantially Rehabiltated Units 0
8. Subtotal -Baseline of Units (add lines 6 & 7) 0
9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0
10. Subtotal of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0
PART III
TOTALS
11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 0
12. Total Increase In Very Low Income Units Inclusionary Obligations During Thls Fiscal Year (add line 5 & 10) 0
California R°Eevelopmanl Agencee-Fiacel Yeer 20092010
Schetlule E (11A01)
'TOlalc may be impacleE by munEing
Page 3 of 4
12/01/2010
9-296
SCHEDULE HCD E1
CALCULATION OF INCREASE IN AGENCY'S INCLUSIONARY OBLIGATION FOR ACTIVITIES
(This Form is Information Only: Actual Obligation is based on Implementation Plan)
Report Year: 200912010
Agency: CHULA VISTA
Project Area: MERGED PROJECT AREA
Project: SENIORS ON BROADWAY
NOTE This form is a summary of the totals of all new construction or substantial rehabilitation units
from forms HCD-D7 which are developed in a project area by any entity (agency ornon-agency).
PARTI
jH 8 SC Section 33413(b)(1)]
AGENCY DEVELOPED
1. New Units 0
2. Substantially Rehabilitated Units 0
3. Subtotal -Baseline of Units (add line 1 & 2) 0
4. Subtotal of Inclusions Obli ation Accrued this Year for Units line 3 x 30% 0
5. Subtotal of Inclusionary Obligation Accrued this year for Very-Low Income Units (line 4 x 50%) 0
PART II
[H & SC Section 33413(b)(2)]
NON-AGENCY DEVELOPED UNITS
6. New Units 0
7. Substantially Rehabilitated Units 0
8. Subtotal -Baseline of Units (add liries 6 & 7) 0
9. Subtotal of Inclusionary Obligation Accrued this year for Units (line 8 x 15%) 0
10. Subfotai of Inclusionary Obligation Accrued this year for Very Low Income Units (line 9 x 40%) 0
PART III
TOTALS
11. Total Increase in Inclusionary Obligations During This Fiscal Year (add line 4 & 9) 0
12. Total Increase In Very Low Income Units Inclusionary Obligations During Thls Fiscal Year (add Ilne 5 & 10) 0
CelHomle Ratleval°pmaM Aganciae~Farel Year 200&2010
ScFredule E (71/01)
'Totals maY be Impacmtl by mantling
Page 4 of 4
12!01/2010
9-287
RDA RESOLUTION NO. 2010-
RESOLUTION OF THE CHULA VISTA REDEVELOPMENT
AGENCY ACCEPTING THE 2009/2010 FISCAL YEAR END
FINANCIAL REPORTS
WHEREAS, California State Health and Safety Code Section 33080.1 requires
redevelopment agencies to prepare an Annual Report for consideration by its Board; and
WHEREAS, the report must include an independent financial audit report and opinion
regarding the Agency's compliance with applicable regulations; the Report of Financial
Transactions of Community Redevelopment Agencies (State Controller's Report); and the State
Department of Housing and Community Development Schedules A-E; and
WHEREAS, California State Health and Safety Code Section 33334.3(d) and (e)
authorize agencies to charge costs of planning and administering affordable housing programs to
their Low and Moderate Income Housing Fund (Housing Fund); and
WHEREAS, California State Health and Safety Code Section 33334.3(d) requires
agencies to determine annually that the planning and administrative expenses paid by the
Housing Fund are necessary for the production, improvement or preservation of low and
moderate income housing; and
WHEREAS, City staff that work on Housing programs and projects track their time in a
Project Accounting system, and only costs attributable to the Housing Fund have been included
for reimbursement; and
WHEREAS, Housing Fund expenditures for planning and administration are necessary
for the production, improvement or preservation of low and moderate income housing.
NOW, THEREFORE, BE IT RESOLVED that the Redevelopment Agency of the City of
Chula Vista does hereby accept the Fiscal Year 2009/2010 Year End Financial Reports as
presented.
Presented by: Approved as to form by:
Maria Kachadoorian
Director of Finance/Treasurer
~~
Glen R. Googins
City Attorney
9-288