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HomeMy WebLinkAbout2010/06/30 Comprehensive Annual Financial Report City of Rancho Cucamonga, California RANCHO CUCAMONGA Comprehensive Annual Financial. Report Year, Ended, June 30,, 2010 City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2010 Prepared by the City of Rancho Cucamonga Finance Department Tamara L. Layne Finance Director THIS PAGE INTENTIONALLY LEFT BLANK CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal ..............................................................................................................................i CityOfficials.......................................................................................................................................xxxi OrganizationChart.............................................................................................................................xxxii Certificate of Achievement for Excellence in Financial Reporting .................................................... xxxiii FINANCIAL SECTION INDEPENDENT AUDITORS' REPORT............................................................................................... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................. 3 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statementof Net Assets............................................................................................................... 17 Statementof Activities.................................................................................................................. 18 Fund Financial Statements: Balance Sheet- Governmental Funds......................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets..................................................................................................... 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds..................................................................................................24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statementof Activities.................................................................................................................. 26 Budgetary Comparison Statement (Budgetary Basis) - General Fund........................................ 27 Budgetary Comparison Statement (Budgetary Basis) - Fire District............................................ 28 Statement of Net Assets - Proprietary Funds............................................................................... 29 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds.................................................................................................... 30 Statement of Cash Flows - Proprietary Funds............................................................................. 31 Statement of Fiduciary Net Assets - Fiduciary Funds.................................................................. 32 Notes to Financial Statements......................................................................................................... 33 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet- Nonmajor Governmental Funds...................................................... 82 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds................................................................... 100 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax................................................................................................................................. 117 SB325 .................................................................................................................................. 118 Recreation............................................................................................................................. 119 ParkDevelopment................................................................................................................. 120 Beautification......................................................................................................................... 121 LightingDistricts.................................................................................................................... 122 Landscape Maintenance Districts......................................................................................... 123 Transportation....................................................................................................................... 124 PedestrianGrant................................................................................................................... 125 Community Development Block Grant.................................................................................. 126 Assessment Administration................................................................................................... 127 San Sevaine/Etiwanda Drainage.......................................................................................... 128 AirQuality Improvement........................................................................................................ 129 SouthEtiwanda Drainage ..................................................................................................... 130 Lower Etiwanda Drainage..................................................................................................... 131 Masi Commerce Center........................................................................................................ 132 MeasureI .............................................................................................................................. 133 LibraryServices .................................................................................................................... 134 California Literacy Program .................................................................................................. 135 AssetForfeiture .................................................................................................................... 136 UsedOil Recycling Grant...................................................................................................... 137 COPSProgram Grant........................................................................................................... 138 DrainageFacilities................................................................................................................. 139 CAState Library.................................................................................................................... 140 Library Services & Technologies Act.................................................................................... 141 Litter Reduction Grant........................................................................................................... 142 Energy Efficient& Conservation Block Grant....................................................................... 143 Senior Outreach Grant.......................................................................................................... 144 Safe Routes to School Program ........................................................................................... 145 Foothill Blvd. Maintenance.................................................................................................... 146 Citywide Infrastructure Improvement.................................................................................... 147 The Big Read Library Grant.................................................................................................. 148 Drink, Drive, Lose Grant........................................................................................................ 149 Department of Homeland Security Grant.............................................................................. 150 Public Resource Grants........................................................................................................ 151 Proposition1B....................................................................................................................... 152 Integrated Waste Management............................................................................................. 153 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis)- Special Revenue Funds (Continued): Proposition 42—Traffic Congestion Mitigation ..................................................................... 154 Justice Assistance Program.................................................................................................. 155 Senior Transportation Service .............................................................................................. 156 Bicycle Transportation Acct. Grant ....................................................................................... 157 Budgetary Comparison Schedules (Budgetary Basis)- Capital Project Funds: Assessment District 82-1 ...................................................................................................... 158 Assessment District 84-1 ...................................................................................................... 159 CFD 2000-01 South Etiwanda .............................................................................................. 160 CFD 2000-02 Rancho Cucamonga Corporate Park............................................................. 161 CFD 2000-03 Rancho Summit.............................................................................................. 162 CFD2001-01......................................................................................................................... 163 CFD2003-01 Project Fund................................................................................................... 164 CFD 2004-01 Rancho Etiwanda........................................................................................... 165 CFD 2003-01 Cultural Center............................................................................................... 166 CFD 2006-01 Vintner's Grove............................................................................................... 167 CFD 2006-02 Amador on Route 66...................................................................................... 168 Redevelopment Agency- Capital Project............................................................................. 169 Budget Comparison Schedule (Budgetary Basis)—Debt Service Fund: Redevelopment Agency- Debt Service................................................................................ 170 Combining Statement of Net Assets - Internal Service Funds.................................................... 172 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds................................................................................... 173 Combining Statement of Cash Flows - Internal Service Funds................................................... 174 Combining Balance Sheet-All Agency Funds............................................................................ 178 Combining Statement of Changes in Assets and Liabilities - AIIAgency Funds......................................................................................................................... 186 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS Page Number STATISTICAL SECTION Financial Trends: Net Assets by Component— Last Eight Fiscal Years........................................................... 197 Statement of Activities (Condensed)— Last Eight Fiscal Years............................................ 198 Fund Balances of Governmental Funds— Last Eight Fiscal Years...................................... 200 Changes in Fund Balances of Governmental Funds - LastEight Fiscal Years ......................................................................................................... 201 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property...................................... 202 Direct and Overlapping Property Tax Rates— Last Ten Fiscal Years.................................. 203 Principal Property Taxpayers—Current Year and Nine Years Ago...................................... 204 Property Tax Levies and Collections— Last Ten Fiscal Years............................................. 205 Principal Sales Tax Remitters—Current Year and Nine Years Ago..................................... 206 Debt Capacity: Ratios of Outstanding Debt by Type— Last Ten Fiscal Years.............................................. 208 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years ................................ 210 Directand Overlapping Debt................................................................................................. 211 Legal Debt Margin Information — Last Ten Fiscal Years.......................................................212 Pledged-Revenue Coverage— Last Ten Fiscal Years..........................................................214 Demographic and Economic Information: Demographic and Economic Statistics— Last Ten Calendar Years..................................... 215 Principal Employers—Current Year and Six Years Ago....................................................... 216 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2010 TABLE OF CONTENTS Page Number STATISTICAL SECTION (Continued) Operating Information: Full-Time and Part-Time City Employees by Function — Last Six Fiscal Years.................... 217 Operating Indicators by Function — Last Six Fiscal Years....................................................218 Capital Asset Statistics by Function— Last Six Fiscal Years................................................219 THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2010 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor DONALD J.KURTH,M.D. Mayor ProTem L.DENNIS MICHAEL CoundImembers REX GUTIERREZ SAM SPAGNOLO _ DIANE WILLIAMs 1 CITY MANAGER JACK LAM,AICP RANCHO CUCAMONGA December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga: It is with great pleasure that we present to you the City of Rancho Cucamonga's Comprehensive Annual Financial Report for the fiscal year ended June 30, 2010. The Comprehensive Annual Financial Report consists of three sections: introductory, financial and statistical. The introductory section includes this transmittal letter, the City's organizational chart and a list of principal officials. The financial section includes the independent auditors'report, management's discussion and analysis (MD&A),the basic financial statements,notes to the financial statements, and combining and individual fund statements and schedules. The statistical section sets forth relevant financial and non-financial data depicting the City's historical trends and other significant facts. This report consists of management's representations concerning the finances of the 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 has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with generally accepted accounting principles (GAAP). As management, we assert that, to the best of our knowledge and belief,this financial report is complete and reliable in all material respects. The City of Rancho Cucamonga's financial statements have been audited by Lance, Soll and Lunghard, LLP, Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Rancho Cucamonga 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 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 that the City of Rancho Cucamonga's financial statements for the fiscal year ended June 30, 2009, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The independent audit of the financial statements of the City of Rancho Cucamonga 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 10500 Civic Center Dr.•P.O.Box 807•Rancho Cucamonga,CA 91729•Tel 909 477-2700• Fax 909 477-2849•www.ci.rancho-cucamonga.ca.us December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. These reports are available in the City of Rancho Cucamonga's separately issued Single Audit Report. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of Rancho Cucamonga's MD&A can be found immediately following the report of the independent auditors. I. PROFILE OF THE CITY OF RANCHO CUCAMONGA General Information: The City of Rancho Cucamonga currently has an estimated population of 178,904 and encompasses approximately 40.2 square miles. It is located between the cities of Upland to the west, Ontario to the south, Fontana to the east and is in the western section of San Bernardino County which is in the southern part of the State of California. The local economy includes a diverse business base of office, light manufacturing and distribution, and retail which emphasizes the City's efforts at attracting and retaining sales tax generating businesses to help provide a stable financial base. Government: The City of Rancho Cucamonga (the City) was incorporated in 1977 as a general law city under the provisions of the Government Code of the State of California,and operates under the Council- Manager form of city government. The City officials elected at large include a Mayor and four City Council members, a City Clerk and a City Treasurer. The Mayor and Council members are elected on a staggered basis for a term of four years. There is no limit on the number of terms an individual can serve as Mayor or as Council members. The Mayor and City Council appoint the City Manager and City Attorney. Reporting Entity and Its Services: The City has included within its reporting entity for financial reporting purposes all agencies for which the City is financially accountable. These agencies include the Rancho Cucamonga Redevelopment Agency, the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District,the Rancho Cucamonga Library and the Rancho Cucamonga Public Financing Authority. The City provides accounting services to all these agencies. Additional information on these agencies can be found in Note La. in the notes to the financial statements. The City of Rancho Cucamonga is a general law city governed by the State of California Government Code and local ordinances and provides quality service by blending the talents of City staff and utilizing other agencies. Certain services necessary to continue the high quality of life in Rancho Cucamonga such as water, sanitation(i.e., sewage) and police are furnished by the ii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga County of San Bernardino and other specialized agencies. The City provides building safety regulation and inspection, street lighting and beautification, land use planning and zoning, housing and community development services, maintenance and improvement of streets and related structures, traffic safety maintenance and improvement, and a full range of recreational and cultural programs for citizen participation. The Rancho Cucamonga Redevelopment Agency administers a variety of economic development, redevelopment, and housing-related programs that support businesses and residents in the City of Rancho Cucamonga. Established in 1981, the Agency has assisted in the elimination of blighted conditions, resulting in the development of new public facilities and affordable housing projects, improved infrastructure, and in the creation of a strong local economy through business attraction and retention, workforce development, and tourism efforts. The Rancho Cucamonga Library provides current information, formal education support, independent learning opportunities and life enrichment materials to the residents of the City. The Rancho Cucamonga Public Financing Authority was established to facilitate the financing and the refinancing of construction, expansion, upgrading and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. Local Economy: Although there is currently a nationwide economic downturn, Rancho Cucamonga's economic base has historically been one of the Inland Empire's strongest. Job and payroll growth have far exceeded regional and California rates since 1990. The city's competitive lease rates, transportation network and community amenities continue to attract businesses of all types. In addition to its manufacturing and distribution sectors, the city's commercial office sector has grown substantially and many new Class A facilities were constructed in the last few years to accommodate future growth. Rancho Cucamonga has also seen a migration of highly educated technicians, professionals and executives over the past few years and many of the City's resident workers have jobs in management,professional,and technical occupations. Budgetary Control: The City adopts an annual budget where each department's budgeted appropriations are controlled at the character of expense level. These levels are defined as personnel, operations, capital outlay, capital improvement projects and transfers. Although the budget is monitored at the character of expense level, the legal level of budgetary control, that is the level at which expenditures cannot exceed appropriations, is the department level within the General Fund and at the function level for the Special Revenue, Debt Service and Capital Projects Funds. Budgetary control is further maintained by the use of an encumbrance system. Encumbrances at year end are reported as a reservation of fund balance. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored throughout the year. Long-term Financial Planning: Annually, the City updates a five-year Capital Improvement Program (CIP). Planned capital expenditures from special, non-operational funds for FY 2010/11 total $86,249,160. The CIP includes improvements to community trails and parkways, drainage improvements, construction of a replacement City Maintenance Yard crew facility, construction of a new Fire Station and a iii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Household Hazardous Waste Building, playground improvements at two of the City's parks, and installation of new traffic signals at three locations within the City. Funding comes from multiple sources including Beautification funds,Drainage funds,Park Development funds,Redevelopment bond proceeds, and various grants. Cash Management Policies and Practices: Cash not immediately needed to finance City operations during the year was invested in securities of the U.S. Government, or its agencies, e.g., bonds and notes of the Federal government and Federally-sponsored agencies, in accordance with State laws governing deposit of public funds. The City invests in time deposits from 14 to 720 days maturity, issues of federal agencies, the State of California's Local Agency Investment Fund (LAIF) and, on occasion, bankers acceptances. It is the objective of staff to attain a greater percentage of invested funds, while maintaining the necessary reserves needed to fund City services. However, it should be noted that all investment decisions are made by considering safety first,liquidity second and yield third. Debt Administration: The City of Rancho Cucamonga, as a general law city, is restricted from incurring general obligation bonded indebtedness that would exceed 3.75% of the total assessed valuation of all real and personal property. The City of Rancho Cucamonga does not have any general obligation debt. The Redevelopment Agency does have various tax allocation bond issues as well as developer loans outstanding. Note 7 of the Notes to the Financial Statements,under the Financial Section of this report,presents more detailed information about these issues. Risk Management: During Fiscal Year 2009/10, the City of Rancho Cucamonga continued its commitment to risk management programs for safety, general liability, workers' compensation and loss prevention. Aggressive claims handling and a strong litigation stance have assisted in maintaining an appropriate reserve for current and future claims payments. The City has minimized its reliance on its third party administrator by processing and administering small claims in-house, resulting in an estimated cost savings of more than $10,000 a year. In addition, various risk control techniques, including employee accident prevention training, employee wellness seminars and fairs, loss control techniques, loss control through safety programs and employee hazardous identification programs have been implemented to minimize accident-related losses and exposure by the public. The City of Rancho Cucamonga is self-funded for the first $350,000 of loss for general liability claims and purchases coverage for losses ranging from $350,000 to $20 million. Additionally, the City is self-funded for the first $150,000 of loss for workers' compensation claims and purchases coverage for losses ranging from$150,000 to $50 million. Pension Benefits: The City provides pension benefits for all employees through a statewide plan managed by the California Public Employees Retirement System (Ca1PERS). The City has no obligation in connection with employee benefits offered through this plan beyond its annual contractual iv December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga payments to Ca1PERS. Additional information on the plan can be found in Note 9 in the notes to the financial statements. II. HIGHLIGHTS OF FISCAL YEAR 2009/10 Redevelopment Agency: Economic Development The Redevelopment Agency's economic development goals continue to focus on creating high end wage earning jobs; business attraction, retention and expansion; improving the quality of life for residents and businesses; increasing the City's tax base; and providing opportunities for public and private partnerships, including private investment in the community. The Redevelopment Agency (the Agency) implements programs and activities that will achieve these goals, thereby adding to the growth and expansion of the local business community. Some of the efforts undertaken include: Business Development: During the past year— despite the economic downturn — approximately 1,010 new businesses began operation in Rancho Cucamonga. Local and Regional Business Development and Outreach Pro rg ams: The Agency provides a number of programs to reach out to companies that are considering Rancho Cucamonga as a location, or expansion of their business. Programs that are included in the Agency's outreach efforts are the following: • Site selection and relocation assistance • Rancho Advantage pre-submittal planning • Electrical certification rebate program • Business consulting and workshops • Job referral/applicant screening services • International trade assistance • Business resource center • Business Appreciation Week • Business and Broker Visitations • Business communications and resources(website,newsletters,e-bulletins,tourism profiles) • Business marketing programs Tourism: As part of its economic development efforts, the Agency continues to promote tourism opportunities advancing its "Gateway to a Southern California Adventure," theme. Rancho Cucamonga continues to receive recognition in travel and tourism magazines, and through regional and statewide internet travel and tourism websites. Affordable Housing The Redevelopment Agency offers a number of programs which provide permanent affordable workforce housing. v December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Home Ownership: First-Time Homebuyers Program: The Redevelopment Agency provides up to $80,000 in funding for down payment assistance in the form of a silent second mortgage to qualifying low and moderate-income families. To date,the program has assisted over 89 families. Family/Senior Housing Rental Opportunities: Housing that is affordable to families who want to live and work in Rancho Cucamonga continues to be a challenge. Affordable rents for family and senior housing range from $352- $604 for a studio apartment; $357-$662 for a one-bedroom unit; and $424-$811 for a two- bedroom unit. The following is a summary of the accomplishments of the Agency to date. Family Housing • Las Casitas Apartments— 14 units • Rancho Verde Apartments- 104 units • Mountainside Apartments— 188 units • Sycamore Springs Apartments—96 units • Monterey Village Apartments— 110 units • Villa del Norte Apartments—88 units • Pepperwood Apartments—228 units • Sunset Heights Apartments— 116 units • Rancho Verde East Expansion—40 units • Villaggio at Route 66-131 units • San Sevaine Villas—225 units Senior Housing • Heritage Pointe Apartments—48 units • Olen Jones Apartments—96 units • Villa Pacifica Apartments— 158 units Additional Housing Programs/Activities The Agency has developed or participated in a number of other housing related programs including: • Mobile Home Rental Assistance Program • Workforce Housing Marketing Strategy • San Bernardino County Homeless Partnership • Foreclosure Prevention Workshops Capital Improvements The Redevelopment Agency is responsible for funding capital improvement projects to assist in the elimination of blighted conditions within the community and to encourage additional investment by the private sector. The more significant projects the Agency has funded this year include: • Upper Cucamonga Storm Drain and Hellman Avenue Widening Improvements • East Avenue Master Plan Storm Drain vi December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Foothill Boulevard Improvements • Etiwanda/San Sevaine Regional Storm Drain • I-15/Base Line Interchange • Haven Avenue Railroad Underpass/Grade Separation • Pacific Electric Trail Although the Redevelopment Agency was able to assist in funding several projects to improve transportation corridors and protect businesses and residents through flood control improvements, other projects were not able to be funded due to the State of California's takeaway of$32 million in redevelopment funds. Engineering Services: The Department is comprised of one lead section, the Engineering Administration Section, headed by the Director of Engineering Services/City Engineer, and five subordinate sections. The following provides highlights of the major accomplishments achieved during the reporting period and a description of the major capital projects completed. Engineering Administration Section In addition to overseeing the operations of the Engineering Services Department's full-time,part- time, and contract employees and $26.5 million combined operating and capital budgets, the Engineering Administration Section managed several significant initiatives and projects this year. Key items this year included continued streamlining and improvements to the operating policies and procedures of the Municipal Utility, updating the City's comprehensive Capital Improvement Program document, ribbon-cutting for the Haven Avenue Grade Separation Project, and continued design of several multi-year capital projects of citywide/regional significance, such as the Foothill Boulevard Widening Project (Grove Avenue to Vineyard Avenue), the Hellman Avenue Storm Drain Project, and Base Line/1-15 Interchange Improvements. Capital Improvements Section The Capital Improvements Section is responsible for the development and implementation of the City's Capital Improvement Program and the design, inspection and contract administration of various City-funded public improvement projects including paving, curb and gutter, sidewalks, landscape and irrigation, storm drains,traffic signals, City buildings, and park facilities. A major accomplishment for the Capital Improvements Section this year was the completion of the Haven Avenue Grade Separation Project, a project that was completed ahead of schedule and under budget, and that has subsequently received four awards in Engineering Excellence. A continued priority for the Section has been maintaining the Annual Comprehensive Capital Improvement Program document which gives a 5-year forecast for each active capital endeavor budgeted by the City. A total of 34 Capital Improvement Projects amounting to over $24 million dollars were completed during Fiscal Year 2009/10. The following are some of the key capital projects that were completed during Fiscal Year 2009/10: vii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Haven Avenue Grade Separation Project • Base Line Road at I-15 Freeway Southbound On-Ramp Improvement • Foothill Boulevard at I-15 Freeway Southbound On-Ramp Improvement • Etiwanda Avenue and Rochester Avenue Pavement Rehabilitation from Arrow Route to Foothill Boulevard • London Avenue and Carrari Street Slope Renovation and Erosion Control • Valle Vista Drive Sidewalk Project • Vineyard Avenue Pavement Rehabilitation Project from 81h Street to Foothill Boulevard • Banyan Street Pavement Rehabilitation from West City Limits to Beryl Street • Foothill Boulevard and Etiwanda Avenue Sidewalk and Block Wall Improvements • Above Ground Fuel Tank Improvements at the City Maintenance Yard • Compressed Natural Gas Improvements at the City Maintenance Yard • Demens Basin Fill Improvements in preparation of the new Fire Station • Foothill Boulevard Traffic Controller Replacement Project • Beryl Street Community Trail from Banyan Street to Wilson Avenue Transportation Development Section The Transportation Development Section oversees the design, installation, and operation of the City's traffic circulation and traffic control facilities, traffic studies, traffic counts, traffic permit issuance, and investigation of citizen concerns. Significant accomplishments this year included the completion of a project to replace 18 traffic signal controllers on Foothill Boulevard which then allowed the signals to be synchronized, the installation of new traffic signals at 19`h Street and Jasper Street, and Foothill Boulevard and East Avenue, and the preparation of a report recommending approval of permit parking districts for two neighborhoods. Land Development Section Land Development is responsible for the review and conditioning of proposed developments, as well as the technical plan check, permit issuance, and construction inspection of developer- funded public improvements such as paving, curb and gutter, sidewalks, landscape and irrigation, storm drains, traffic signals, and park facilities. This year, a major priority for the Section has been continuing its efforts toward the reorganization of consultants' services and utilizing staff resources more heavily due to the slow down in the economy. Other noteworthy endeavors for this year have been assisting the Inland Empire Utility Agency in processing construction permits for installation of their reclaimed waterlines, implementing and enforcing the permit process for residential curb house number painting, issuing permits for the new parking permit districts, and processing an agreement with a telecommunications company for the leasing of spare City conduits. Environmental Programs Section The Environmental Programs Section is charged with administering the City's environmental programs which aim to encourage the preservation of natural resources and prevent stormwater pollution, thereby ensuring compliance with state and federal mandates such as AB 939 and the National Pollutant Discharge Elimination System (NPDES). Highlights for this year included a successful collaboration with the Cucamonga Valley Water District to conduct water and environmental education field trips at its Environmental Learning Center for first to sixth grade viii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga students where City staff taught lessons about the environment that complemented the existing curriculum. Also of note, this Section helped to set up a program that converts tree trimmings and wood debris, collected throughout the City and through the construction industry, into mulch used at City parks and landscapes. This program has resulted in over $30,000 in cost savings to the City from not having to purchase mulch. Municipal Utility Section The Rancho Cucamonga Municipal Utility (the Utility) functions as a "spot utility" providing electric service to a limited number of newer commercial developments including and surrounding the Victoria Gardens Regional Center. Of note this year, the Utility began an overhaul of its Energy Efficiency Program. This program is now being administered in-house and incentive rebates have been updated and are now inclusive of an"other" category for energy efficient upgrades that may not have previously been incentivized, with the hopes of getting Utility-served customers to think outside the box when aiming to become more energy efficient. Public Works Services: The Public Works Services Department is the steward of the City's growing infrastructure of buildings, streets, storm drains, parks and landscape improvements. To fulfill its broad mandate, the Public Works Services Department is headed up by the Public Works Administration Group which is charged with the management of three subordinate sections: Facilities Maintenance; Streets, Fleet, and Storm Drains Maintenance; and Parks and Landscaping Maintenance. The following are the highlights within the Public Works Services Department during Fiscal Year 2009/10: Administration Section • The design process for the Public Works Service Center expansion is now complete and has been submitted to Building and Safety for review and approval. This expansion will provide the space greatly needed to accommodate the City shifting from a growth period to a maintenance mode. The building will be constructed with sustainable, environmentally- friendly materials and will feature California native landscaping as well as solar panels to lower our demand for water and electricity. The construction of the new building is anticipated to commence in May 2011 and construction completed in the fall of 2012. Facilities Maintenance Section • Bike Lockers at Metrolink: As part of the Healthy RC living program, staff has installed 10 new bike lockers at the Metrolink Station. These new, self-serve bike lockers not only provide citizens with a secure storage area,they also protect the bike from the elements. • Epicenter and Adult Sports Park Sports Lighting Replacement Project: As a part of the replacement of sports lighting at the Epicenter and Adult Sports Park, three softball and two soccer fields will have more energy efficient lamps installed. New technology in the ballasts will allow the replacement of 1,500 watt lamps with 1,000 watt lamps on these fields which will result in a savings in electricity, but it will also result in fewer ballast changes each year. ix December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Specifications have been completed and the project will start in January 2011 with an estimated completion of June 2011. • Civic Center Underground Parking Lighting Fixture Replacements: Also during the past year, the RCMU funded the replacement of the underground parking lot light fixtures with more energy efficient fixtures. 100 watt High Pressure Sodium fixtures were replaced with 40 watt Induction fixtures which require less on-going maintenance and reduce energy consumption. 33 light fixtures were replaced, saving 1,980 watts of energy. These lights are on 24 hours a day, 7 days a week and projected payback is less than 1.5 years. • EECBG Stimulus Package: In FY 2009/10 the Public Works Services received approximately $1.3 million from the Energy Efficiency and Conservation Block Grant(EECBG)funding for the replacement of the variable air volume (VAV) boxes and HVAC control system. The installation of new digitally controlled VAV boxes and an advanced HVAC control system will provide an estimated 15-20% greater efficiency in controlling air conditioning and heating for significantly improved climate control and comfort for the building occupants. The system will compare real-time space temperature, outside air conditions, and equipment capabilities so the equipment can be turned on at an appropriate time to ensure maximum comfort and efficiency. The specifications for this project are complete and will go out to bid in December. The project is expected to start in January 2011 and completed in June 2011. • Facility "Mini-Makeovers" at the RC Family Sports Center (RCFSC), Central Park and the Epicenter: During FY 2009/10, the Facilities section continued to update the heavily used areas at the RCFSC as well as Central Park and the Epicenter to keep their appearances at premier status. At the RCFSC, the basketball court areas were re-painted, floors refinished, court lines were re-painted and new padding was installed. At Central Park, the wood casework throughout the building was refinished as well as the main stage in the David Dreier Hall and the wooden classroom floors; exterior entrance lighting was installed; class and conference rooms were painted; an electronic informational marquee was installed above the main counters of the community and senior centers; and wiring was installed for an intercom/paging system and an audio system. At the Epicenter, the skybox was remodeled, carpeting was replaced in all of the 3rd floor suites and offices and the locker room shower tile was replaced. Streets,Fleet,and Storm Drain Maintenance Section • Fleet Shop Modifications: We currently have 10 CNG vehicles (6 sweepers, 3 dump trucks and 1 Honda sedan)in our city fleet. During the year,Public Works Services received a grant from the South Coast Air Quality Management District (SCAQMD) via the Mobile Source Air Pollution Reduction Review Committee (MSRC) for $117,500 toward the fleet shop modifications to accommodate the repair and maintenance of CNG vehicles at the Public Works Services Center. This is the latest of several grants we have received from SCAQMD for alternative fuel vehicles/projects. Design plans have been submitted to the Building and Safety Department for approval and construction is anticipated to begin in early 2011. • Vehicle Purchases: As part of the Healthy RC living program and the Council's continuing effort to promote the use of alternative fuels in the City's vehicle replacement program, 5 hybrid vehicles and 1 CNG sedan were purchased and received during the past year. We currently have 29 electric hybrid vehicles in our fleet in addition to the 10 CNG vehicles. We also have 12 diesel vehicles that have been retrofitted with particulate traps which make them compliant with current CARB and SCAQMD regulations and allow us to keep them in operation until they can be replaced. x December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Street Name Sign Replacement Program: Completed phase 7 of the Street Name Sign Replacement Program. • Bridge Deck Maintenance: As part of the Caltrans bridge deck inspection program, the City receives a bi-annual report on the general condition of our bridge decks. From this report and inspections by our contractor, a maintenance plan is created. Phase I of the maintenance was completed in May 2010. Phase II of the maintenance project started in October 2010 and will be complete in spring 2011. Parks and Landscape Maintenance Section • The City of Rancho Cucamonga was recognized by the Department of Forestry and Fire Protection for effectively managing public tree resources throughout the past year. The Tree City USA award was presented at a tree planting ceremony during the Arbor Day Festivity in May. • Red Hill Park: Staff completed the Red Hill Park Cobblestone project to stop erosion into the lake. • Recycled Water Update: Phase II of the recycled water project is well under way and is ready to come on line. 10 parkway and median islands sites in various landscape maintenance districts and 2 park sites (Victoria Arbors Park and the Adult Sports Complex) should be connected to the recycled water system by the end of November 2010. • Park and Landscape Update: Staff has increased the use of mulch to create an environment for healthier plants and lower water usage. Park crews along with NPDES and Burrtec have set up a program where the City's wood waste is being recycled and reused throughout the city as mulch. Mulch helps to reduce soil moisture evaporation, cools the soil and allowing beneficial micro-organisms to thrive and creates a weed barrier. The use of mulch is not only aesthetically appealing and improves the beauty of the landscape, but also helps in reducing the cost of plant material,water and labor. Planning: The Planning Department processed a wide variety of projects during the 2009/10 fiscal year. The following are the highlights of those activities. Current Planning In Current Planning, a number of major development projects, permit entitlements and special projects were processed ranging from the General Plan Update and Amendments to Home Occupation Permits. Approximately 1,718 construction plan checks and 113 rechecks were completed. Some of the major development projects that were processed and/or inspected were: • Vintner's Grove Office Park - Located on west side of Haven from Arrow to 26th Street, the first phase was completed, a 2 - 3 Office buildings of 121,530 square feet. The Vintners Grove Office Park is a phased project with a 3 lot office condominium map. The Development consists of 9 buildings, with 3 of the buildings being 3 stories tall along Haven xi December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Avenue and the remaining 6 buildings single story along the west side of the property near the center. • Vintner's Grove Residential Project — An innovative mixed use, modified zero lot line development was completed on 20.54 acres of land with 78 single-family detached homes and 78 attached condominium units in a gated community, located on the east side Center Avenue, between Arrow Route and 26th Street. The Development has a strong residential themed architecture,high quality amenities with recreational facilities and landscaping. • Toby Keith's "I Love This Bar and Grill" received approval from the Planning Commission in summer of 2010, and interior construction began in the late fall at the Victoria Gardens Lifestyle Center. This new addition to Victoria Gardens will occupy the former West Elm furniture store, a subsidiary of Williams-Sonoma, which closed in 2009. Toby Keith's will occupy a lease space of nearly 16,000 square feet and will also include a 770 square foot covered outdoor dining area. The bar area will be unique, encompassing over 1,100 square feet and featuring over 70 bar stools. Patrons will also be able to dance to live bands performing on a 750 square foot raised platform located inside the building. ■ A proposal to develop an industrial/warehouse complex comprised of 12 buildings and 13 parcels on a triangular shaped property of approximately 904,000 square feet (20.7 acres) in the General Industrial (GI) District, Subarea 3 located about 640 feet west of Hellman Avenue at the south side of 8th Street and the south and north sides of 7th Street ■ A request to construct two office/professional buildings of about 27,000 square feet on three vacant parcels with a combined area of 2.5 acres in the Office/Professional (OP) District located at the northwest corner of Archibald Avenue and Arrow Route ■ A proposal to demolish an existing 5,489 square foot building that was formerly used as a bank located at 9709 Base Line Road and construct a Taco Bell fast food restaurant with drive-thru of 2,432 square feet at an existing shopping center in the Neighborhood Commercial (NC)District at the southeast corner of Base Line Road and Archibald Avenue ■ The K. Hovnanian housing tract went through development review this year. The project consisted of the plotting and design review of 79 homes on 34.1 acres of land in the north east corner of the city in the housing development of Rancho Etiwanda Estates ■ The General Plan was adopted and the Environmental Impact Report was certified by the City Council in May 2010 ■ Staff is processing a request by Lewis Apartment Communities to construct a multi-family housing development consisting of 192 units on 11.15 acres of land within the Residential High (H) Development District (24-31 d/u per acre) of the Terra Vista Community Plan on the south side of Church Street between Elm Avenue and Spruce Avenue scheduled for Planning Commission December 8, 2010 for approval. The Current Planning section was also involved in the following special projects: • Historic Preservation Month for 2010 was celebrated throughout the month of May and consisted of activities such as: the Annual "Mother's Day Tea" hosted by the Etiwanda xii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Historical Society; a proclamation presented by the City Council to the Historic Preservation Commission in recognition of Preservation Month; informational historic booth displays showcased at the Biane Library. The display boards, local history, and "Old is the New Green" concept was the main focus of the showcase display; the Historical Preservation Association hosted it's first "Historic Home Tour" on May 23rd; and finally, "Local History Night"was an evening event hosted by the Library on June 4th. Advance Planning The Advance Planning section was involved in the following special projects: • Staff applied for the Compass Blueprint Demonstration Project, a Southern California Association of Governments (SCAG) project, on October 21, 2010 for the review of Foothill Boulevard and is waiting on response from SCAG. • Development Code: Various amendments to zoning regulations and standards • The City secured $2.1 million in Housing and Urban Development Funds for Neighborhood Stabilization Program in 2009. Staff worked with RDA on the disposition of acquired properties (3 properties under the Acquisition/Rehabilitation and Reuse activity and 3 properties under the Acquisition/Rehabilitation and Resale activity) and conduct associated rehab work through Home Improvement Program to create first time home ownership opportunities. • The continued implementation of the Energy Efficiency and Conservation Strategy (EELS), which includes the Civic Center HVAC activity, Energy Efficient Revolving Loan(processed 8 loans),Energy Efficient Appliances Rebate, and Energy Efficiency Coordinator activities. Historic Preservation Historic Preservation activities included the following: • Chaffey-Isle House - Continued monitoring of construction activity on the restoration of the Chaffey-Isle House. • Staff continued working with SANBAG on the acquisition for the Historic Pacific Electric Depot and on October 6, 2010 the City Council approved the amended lease agreement and purchase agreement for the Depot structure. • Working toward the adoption of the Historic Preservation Ordinance through Planning Commission and City Council. City attorney reviewed and revised draft. Staff held 3rd stakeholder meeting on December 1, 2010. The committee would like another stakeholder meeting with the Water Board,prior to 1st reading at City Council. • A Landmark Alteration Permit is being processed for the Hippard Ranch House in Etiwanda. • A development/design review application is being processed for the property adjacent to the Cucamonga Service Station. xiii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Continue working with library staff on the Local History Digital Resources Project. The second batch of materials will be sent to the digital consultant along with the inputting of data into the CONTENTdm software. • Consideration is currently being given to landmark the Hellman Avenue trees. • A Mills Act contract was processed for the Nosenzo-Smiderle House on 8068 Archibald Avenue. • Advance planning staff held a General Plan/Historic Preservation training event for the Historic Preservation Commission. • Adoption of the General Plan Update — implementation of the Historic Preservation policies will be ongoing. • Archive Center—updating and cataloging will be an ongoing task. Building and Safety: The Building and Safety Department provides plan checking, inspection and permit activities for construction projects to meet State Model Codes including building, fire, ADA, energy, grading, plumbing, mechanical and electrical codes. The department also provides code enforcement of municipal code and property maintenance standards in a coordinated environment. Building and Safety continues to enhance the use of permit software that helps to expand its use to on-line permit processing of fee payments. It also provides an interactive voice response system which allows customers to access permit and inspection information 24 hours a day, 7 days a week. The department conducted over 21,000 inspections and issued almost 2,400 permits during the 2009/10 fiscal year. The Department continues to improve communication with customers by enhancing public relations through website development,providing user friendly forms online, creation and design of an informative department brochure, revision and updating forms and handouts, and the publication of a quarterly newsletter. Building and Safety received$57,000 from the American Recovery Reinvestment Act(ARRA)to help implement an Energy Efficiency Rebate Program and provide Green Building Standard certification for staff. We provided reimbursements to over 110 residents for purchasing and installing energy efficiency appliances, and we have certified three staff in Green Building and two are pending certification. Building Inspection The Building Inspection Section has assumed the enforcement responsibilities of mobile home parks and has been working with the parks to discuss outstanding issues and concerns, while assigning an Inspector to the parks who is responsible for ensuring the properties are maintained. xiv December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga In addition, this unit works with Code Enforcement to abate properties that are vacant and abandoned due to foreclosed residential and commercial properties. Additionally, this section provides support to the Fire Department and Engineering staff for inspection services for the new fire station on Hellman Avenue. Plan Check and Support Services The Permit Section has addressed the reduction of projects by limiting the use of outside consultants and cross training Inspectors to assist with plan check and over the counter questions. Fire Construction Services Unique to Rancho Cucamonga is the Fire Construction Services section located within Building and Safety. On behalf of the Rancho Cucamonga Fire Protection District, Fire Construction Services performs all development and technical review related to fire codes and standards for new proposed projects, plan review and permit issuance of all fire protection systems (automatic fire sprinklers, fire alarms/monitoring systems and hood suppression systems) and the section provides all fire inspections for new construction. Additionally,this section continues to work diligently with the Fire District to help local business come into compliance with the current fire codes while minimizing the potential disruption to their business. Code Enforcement This section continues to provide services for enforcing requirements of municipal code,property maintenance standards, zoning related issues, and promoting and educating the general public to maintain healthy, safe, and clean living and working environments. Code Enforcement receives requests for service each year on certain areas of the Municipal Code, such as property maintenance and health and safety concerns. This section has a comprehensive program which protects a property owner's investment, promotes public health and welfare, and enhances the quality of neighborhoods. It is an integral part of the City's commitment to neighborhood preservation. When homes and businesses are properly maintained,it has a positive effect on the appearance of our community. During FY 2009/10, Code Enforcement continued to promote the volunteer and shopping cart retrieval programs. In addition, they continued their successful neighborhood clean-up efforts by assisting over 120 residents and collecting approximately 20-tons of garbage. Finally,this section is responsible for enforcing municipal codes against owners who have abandoned or vacated their properties. During this year, Code Enforcement worked on 260 cases of abandoned homes and more than 750 vacant homes registered with the City for future contacts to abate the nuisances. In addition, Code Enforcement staff handled almost 4,000 cases of violations. This equates to an approximate 10%increase in the number of cases from the prior fiscal year. xv December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Community Services: Senior Services The motto of the James L. Brulte Senior Center is Stay Healthy, Live Longer. Thousands of seniors in Rancho Cucamonga have embraced this philosophy for life and are active participants at our dynamic Senior Center. Offering a variety of recreation, education, fitness, cultural, nutrition, health and wellness programs and services, the Senior Center continues to be the focal point for older adult services in Rancho Cucamonga. The Senior Center is a place where senior adults can spend the best years of their lives! At the core of the Senior Center's expansive program is the daily lunch program which provides inexpensive hot meals to over 150 seniors at the Center and in their homes. The Senior Center also provides a wide selection of activities, classes, events and services. Another vital program for seniors, the Silver Fox Express Senior Transportation Program has now been in operation for three years providing essential transportation to the seniors in Rancho Cucamonga. This last year saw the 20 member Senior Advisory Committee address many significant issues and needs of seniors in the community. On the top of that list was to raise funds for the Silver Fox Express Senior Transportation program to ensure that otherwise homebound seniors would continue to have access to the Senior Center. The Senior Center has addressed many opportunities and challenges over the past year in meeting the needs of older adults throughout our community. The Center continues to be a vital social institution that is an essential link in the aging network, offering a broad range of services and activities and access to many other community resources. Cultural and Performing Arts The Lewis Family Playhouse at the Victoria Gardens Cultural Center completed its fourth season presenting a wide variety of performances for all ages and interests, offering a great menu of entertainment options including music, dance, comedy, family theatre, Broadway-style musicals and even documentary films. The Rancho Cucamonga Community Theatre also brought three theatrical treasures to the stage this year to celebrate the seasons. In fall, The Crucible, in winter,A Christmas Carol, and in the spring, Grease. Special Events and Special Projects Last year over 31,800 community members attended the Department's major community-wide special events. Last year's special events included: 4th of July Fireworks Spectacular (2009), Movies and Concerts in the Park, Founders Festival, Metrolink Toy Express, Cinco de Mayo Celebration,and Springtime Movies in the Park. Snorts The Sports Division continued to follow the Community Services Department motto of "Touching Every Life" by providing a wide variety of Pee Wee, Youth and Adult activities for xvi December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga our residents. A Summer Sports Camp at the R.C. Family Sports Center as well as a Cucamonga Middle School Summer Sports Camp were again offered this year for the community's youth. Finally, the Northtown Partnership is collaboration between the City of Rancho Cucamonga Community Services Department, The Northtown Housing and Development Corporation and the Cucamonga School District. The purpose of this partnership is to provide recreation and sports activities in a safe environment to the residents in this portion of the City.A wide variety of Adult Sports Leagues and Tournaments were available for adult community members as well. Youth and Family The Department offered over 1,070 recreation classes, programs and workshops during the past year for all ages. Last year, over 43,280 participants were enrolled in the Department's recreation classes. Youth programs and activities included the very popular Playschool program, summer camps and special events just for kids! Teens also had a variety of activities to choose from including attending the Department's Teen Center housed at the RC Family Sports Center, or participating in the popular Teen Recreation Activity Club (TRAC), Volunteen Program, safety and educational workshops,the College Fair, Career Fair, and trips and opportunities to give back to their community. The RC Family Resource Center provides a link to over 58 non-profit/social service organizations providing emergency food and clothing, counseling, adult ESL classes, GED preparation, case management, family crisis intervention, domestic counseling, adult and youth life skill classes,parenting classes, support groups and much more. Additional Department Activities Volunteer opportunities continued to grow and expand this past year as staff continued to find new ways to utilize volunteers throughout the City. During the last year volunteers worked at numerous events and activities. Last year over 50,000 hours of volunteer services were provided by the Department's volunteer core. Providing opportunities for citizen involvement is an important aspect of the philosophy of the City and the Department. The Rancho Cucamonga Epicenter is home to the highest attendance ranked Southern California team in the Single `A' Baseball League, the Rancho Cucamonga Quakes. The team is a California Affiliate of the Los Angeles Dodgers. Quakes' baseball is played on the Stadium field between April and September each year. On non-game days and during the off-season,the facility is available for rent. Police Department: The City of Rancho Cucamonga contracts with the San Bernardino County Sheriff's Department for general law enforcement services. The Police Department has 135 sworn officers, 39 general employees and 96 volunteers which include Reserves, Citizen Patrol, Equestrian Patrol and Explorers. In addition to basic patrol services the Rancho Cucamonga Police Department also provides the following: Solution Oriented Policing Team; Crime Prevention Unit; School Resource Officers; Bicycle Enforcement Team; Multiple Enforcement Team; Traffic Enforcement; Detective Unit;Alcohol Compliance Team; and a Retail Theft Team. xvii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga According to the CQ Press, the City of Rancho Cucamonga is rated year after year as one of the `safest' cities in the United States of America with a population over 75,000. The City of Rancho Cucamonga and its Police Department share a great deal of pride in this accomplishment and enjoy a great working relationship as well. Together, they provide residents and business owners with the type of safe community other cities envy. In 2010,the following four programs highlight the inter-department collaboration and community support that justifies such high ratings: First Responders Preparedness An Executive Board was created and comprised of members from the Police Department, Fire Department, School Administrators and City personnel to enhance the response and preparedness for an active shooter situation in our local schools. Workshops and training were provided to all stakeholders. This includes practical scenarios set up at schools for responders to practice building searches, communication skills and life saving techniques. The City's Geographic Information Systems Division worked with police personnel to photograph school campuses providing the first responder the ability to view, in car, photographs of the school with new and sophisticated"visual tour"technology, thus, giving the responding officer the ability to be better prepared prior to entering an active shooter situation. Crime Free Multi-Housing Team Due to the success of the Crime Free Multi-Housing Program, the Police Department implemented the Crime Free Hotel/Motel Program. This program provides Hotel/Motel Management the tools to recognize when crimes are occurring on their properties. This allows them to work with law enforcement in preventing criminal activity from occurring. The team meets with management staff and completes a Crime Prevention Through Environmental Design (OPTED) inspection and certifies them as a property which assists with providing a safe property for guests and employees. Signage is provided to each property identifying them as a participant of the Crime Free Hotel/Motel Program. The team regularly conducts follow up meetings with management and their staff to educate them on trends involving criminal activity occurring at Hotels/Motels. Any time a crime occurs the case is followed up by the team and statistical data is maintained to monitor the success of the program. Pedestrian/Bicycle Involved Collisions Task Force Over the past two years the Police Department had noticed an increase in the number of pedestrian and bicycle traffic in the city. With this increase in traffic came an increase in the number of traffic related accidents involving pedestrians and bicycles. It was found that most of these accidents occurred due to the pedestrian or bicyclist failing to follow safe rules of the road. This would include walking or riding in traffic lanes, failing to yield to on-coming vehicles, failure to wait for pedestrian signals and jaywalking. The department targeted enforcement in known problem areas to include schools, Pacific Electric Trail, bus stops, and business areas. The Traffic Division took the lead role and conducted educational programs in the schools and community, to include the annual Ron Ives Bicycle Rodeo. They also took zero tolerance enforcement action citing individuals for failing to follow xviii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga the rules of the road. In conducting both educational programs and targeted enforcement the department has seen a reduction in the number of accidents involving pedestrians and bicyclists. Alcohol Compliance Team(ACT) In an effort to support the efforts of the Planning Department and the California Alcohol Beverage Control Department, the Police Department created the Alcohol Compliance Team (ACT). This team of deputies is specially trained in education, compliance and enforcement of alcohol business-related issues. They regularly support the Planning Department, Code Enforcement, and the Fire Department to ensure that alcohol businesses are complying with state law and local conditional use permits. Since the inception of the Alcohol Compliance Team, there has been a dramatic reduction in alcohol-related criminal behavior to include driving under the influence; assault and battery; drunk in public; and other violent crimes. There has also been a pro-active effort to monitor conditional use permits and ensure the businesses are complying with their provisions. This project has been proven to be a great success and will continue into 2011. Fire Department: The Rancho Cucamonga Fire Protection District is responsible for fire prevention, fire protection, and life safety services. District personnel are dedicated to the preservation of life and property in service to the community. The continuous goal is to deliver these services in an effective, efficient and professional manner,reflecting improved fire and life safety. During the 2009/10 fiscal year, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • Completed a successful Dispatch Project transition to CONFIRE (Comm. Center) in December 2009, including implementation of Emergency Medical Dispatch (EMD). This service will result in the appropriate resources being dispatched to emergencies, while life-saving instructions are provided to the 9-1-1 caller by specially trained dispatchers. • Completed the construction contract bid for the new Hellman Avenue Fire Station(177). • Purchased and received the new Hellman Station Medic Engine 177 as budgeted for in the FY 2009/10 Adopted Budget. • Efforts to reduce false alarms, and the unnecessary responses, continue to have success. When first identified in early 2006 as a significant problem that needed a concentrated improvement effort, the District made 742 responses to false alarms. Through cooperative efforts of District Fire Inspectors, Fire Investigators and the fire alarm industry, as well as the commitment from local businesses to repair problematic systems, false alarms in FY 2009/10 fell to 265. This is a reduction of 64% or 477 calls per year. As a result of this dramatic reduction, the District eliminated the requirement for owners of fire alarm systems to maintain third party certification of their alarms. This change in policy will save Rancho Cucamonga businesses hundreds, and in some cases thousands, of dollars each year. xix December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Continued the public education Risk WatchTM injury prevention program in a dozen preschools across the City. The comprehensive injury prevention program targeted eight major risk areas that result in serious injury or death for children under the age of five. More than 50 teachers and 1,200 students participated in the program. At the end of the school year, all participants were invited to a Risk WatchTM Celebration event where students,teachers and some parents took part in hands-on activities and workshops. • The combined efforts of Public Education and Fire Prevention to reduce the use of fireworks in the City continue to show results. After logging a 74% reduction in the number of fireworks complaints from 2005 to 2009, the District determined that evening patrols could be scaled back. On July 4th of this year, the District did not receive any fireworks complaints through the Dispatch Center and received only two calls to the Administration Office. While we acknowledge that there remains some illegal use of fireworks, most residents are complying with the City's fireworks laws. The ability to reduce the evening patrols has helped to reduce overtime expenses incurred by the Fire District Prevention Bureau. • The Emergency Medical Services Program traded in the PhysioControl LifePakl2 (LP12) cardiac monitor/defibrillators previously used to upgrade to the PhysioControl model LP15s. LP15s, in addition to the basic cardiac monitoring, defibrillation and performing 12 lead EKGs, give medics the ability to monitor CO levels and capnography. These additional tools provide more information pertaining to the patient's condition and help the medic to better manage/treat patients with cardiac illnesses, airway management and/or manage issues with oxygenation levels. Also added was the use of CPAP devices (Continuous Positive Airway Pressure), which are utilized as one of the treatments for patients in respiratory distress. • Emergency Management Program. Coordinated a Public Education campaign regarding the danger of H1N1 Influenza and the need for vaccination; facilitated delivery of two public H1N1 vaccination clinics at Epicenter Stadium in conjunction with San Bernardino County Public Health and internal departments; facilitated acquisition, implementation and training of web-based incident management software (WebEOC) for EOC/DOC/Field responders to provide a common operating picture and enhanced response during catastrophic incidents; and participated in disaster drills with local public schools to provide pre-disaster coordination of resources and enhance response during a catastrophic incident. Library Services: Library services in Rancho Cucamonga were more popular than ever in Fiscal Year 2009/10. In the past fiscal year we checked out over 1.22 million books, DVDs, CDs and magazines, issued over 17,000 new library cards. 100,000 people used a library computer or our Wi-Fi network, and 35,000 youngsters attended a library program. Currently 200,000 borrowers own a library card and enjoy a collection of over 275,000 titles, 320 magazine and newspaper subscriptions and free access to over 70 PCs through "The Three Amazing Libraries" of Rancho Cucamonga. Other Library highlights include: xx December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Children's Services: • More than 35,000 youngsters came to our libraries to enjoy the popular story time programs. Offered eighteen times each week at our two locations,the preschool,toddler, school-aged and teen programs offer something for children of every age. • The Summer Reading Program had over 3,800 children and teens maintaining their reading skills during the summer months. • The "Back to Basics" Children's Literacy Program served another class of 150 youngsters, improving the reading level of each child and promoting reading and literacy as a pathway to success. • The popular "Kidsmobile" provides service to elementary schools. Stocked with books that kids love, our distinctly-designed bookmobile visits children at their school sites. The Kidsmobile checked out almost 50,000 items to children during this past fiscal year. Senior Services: • The Library's "Housecalls" outreach program delivers library materials via volunteers to community members who cannot come to the library. This service reaches more than 50 Rancho Cucamonga residents, and we deliver library materials ranging from books to DVDs to recorded books on CD. Information and Cyber Services: • Between the Adult and Children's Information Service desk and our Virtual Library, over 170,000 information questions were answered during the past fiscal year. • Over 100,000 library customers used our free,public access computers or Wi-Fi network to search for jobs, send email, create resumes, type up school reports or just surf the Internet, while over 1,500 children, teens and adults took advantage of hands-on computer classes. Literacy Services: • Over fifty active literacy tutors and learner pairs call the Library their home to improve literacy skills. The continuation of this program is possible due to on-going support from the State Library, Community Development Block Grant funds, corporate and private donations. Volunteer Services: • Between the Friends of the Library and the regular volunteers, over 17,000 hours of volunteer time were donated in Fiscal Year 2009/10. • The Friends of the Library volunteers accounted for 8,500 hours of volunteer time for sorting, staffing and managing the Friends Bookstore at both libraries. Open seven days a week,the Friends Store raised over$120,000 for the Library in Fiscal Year 2009/10. xxi December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Library Foundation Highlights: • In the past year, the Library Foundation donated over $90,000 towards various library programs, matching grants the Library received for building "proof of concept" prototypes for the second floor of the Biane Library, for the creation of a local history room, and for the"Healthy RC"project. Goals for Next Year • The Library will continue to aggressively pursue grants. For funding additional work on the second floor of the Biane Library, the Library will look at the Library Services and Technology Act (LSTA) and the Institute of Museums and Library Services (IMLS) for planning and programming grants. • For a new revenue source, the Library was recently certified as a passport acceptance agency by the United States Department of State. The Library hopes to successfully grow this service in the coming year. City Manager's Office: As the administrative head of city government,the City Manager is appointed by the City Council to enforce municipal laws, direct daily operations of the City, make recommendations to the Council, prepare and monitor the municipal budget, appoint and supervise all City department heads and employees, and supervise the operation of all City departments. The City Manager is responsible for implementing policies adopted by the City Council; preparing and submitting the annual budget and administering the day-to-day operations of the City. As part of these responsibilities, the City Manager's Office oversees various citywide and interdepartmental projects and efforts. These include: Healthy RC Under the leadership of the City Manager's Office, Rancho Cucamonga has developed a strong Healthy RC program. The program is unique in its holistic approach in encouraging residents, businesses, and our own organization to adopt healthy, active and sustainable lifestyles and practices. This approach brings together both new and existing efforts of each City Department with the goal of improving of the quality of life in our community. The City of Rancho Cucamonga was awarded a $360,000 grant from the Robert Wood Johnson Foundation (RWJF) to improve opportunities for physical activity and access to affordable healthy foods for children and families throughout the city. Rancho Cucamonga is one of 41 sites nationwide selected for the RWJF Healthy Kids, Healthy Communities initiative to advance community-based solutions that will help reverse the childhood obesity epidemic. Through the Healthy RC Kids Partnership, the City of Rancho Cucamonga will work to change community systems to make the healthy choice, the easy choice by developing common and complementary policies across the major youth-serving institutions in the community and significantly improving opportunities for active living and healthy eating for children and families. xxii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga The City hosted four healthy cooking classes for youth and adults in the Northtown area of the City during the year. Each class lasted six weeks and had 25 to 30 participants in each session. At the end of each session, a group dinner was held where the participants were given the opportunity to show off their new culinary skills. Green Sustainability The City Manager's Office has led the citywide green sustainability efforts. An interdepartmental "Green" Team was established to lead the City's efforts toward making our operations and business practices environmentally friendly and encouraging the community to adopt sustainable practices. A Sustainability Action Matrix was developed which serves as a framework for implementing the "Healthy Earth" component of the Healthy RC program. Some of the accomplishments under this initiative include: • Utilizing EECBG funding,assisted 110 homeowners purchase and install energy efficient appliances through Energy Efficient Appliances Rebate Program • Completed energy efficient retrofits to 10 homes in the community • Getting ready to start energy efficiency retrofits of Civic Center HVAC and lighting systems. • Partnered with CVWD to provide sustainability-related education programs for school children visiting the Environmental Learning Center • Library received grant to encourage sustainability through light bulb exchange,purchase of Kill O Watts (electricity usage monitors) for checkout, and children's environmental sustainability program series • Launched paper waste reduction campaign Workforce Development The City Manager's Office continues to provide oversight for the Team RC Workforce Development Program. This initiative assists in employee development, fostering an ideal culture, and preparing the next generation of public service employees. Community Information Program The goal of the Community Information Program is to inform and educate the community on service, projects, and programs provided by the City of Rancho Cucamonga. The City's active Community Information Program includes the quarterly publication of the Rancho Cucamonga Reporter, the Annual Report, related special publications, and the RCTV-3 government channel and Community Information Bulletin Board. The City Manager's Office also assists with media and press relations, as well as all informational news releases. Legislative Program The City Manager's Office coordinates a very active legislative program focused on protecting the interests of our community and identifying resources available to enhance City services and programs. Legislative efforts include researching and monitoring federal and state bills,preparing position papers and letters in response to proposed legislation, and working with legislative representatives and their staff to promote the interests of the community. xxiii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Additionally, as the City Council actively participates in regional agencies and boards, the City Manager's Office provides assistance and support. The inter-governmental agencies the City of Rancho Cucamonga participates in include SANBAG, Omnitrans, SCAG, and Metrolink. Ombudsman The City Manager's Office strives to ensure that the City provides the highest level of customer service. The City Manager's Office is available to assist residents with any city-related issue. The staff in the City Manager's Office helps residents in person, over the phone, or via email through the City's General Information Email Account, CityInfo@cityofrc.us. Cable Television Franchise Administration The City Manager's Office serves as the Franchise Administrator for cable television franchise agreements. There are two cable companies operating in Rancho Cucamonga: Charter Communications provides service to a majority of Rancho Cucamonga residents, and Time Warner Cable provides service to a limited portion of the City. Should residents experience difficulty contacting one of the cable television providers, or encounter a customer service issue, they may contact the City Manager's Office for assistance. Animal Care and Services: The Animal Care and Services Department (AC&SD) provides care, shelter, and adoption services for homeless, abandoned, and abused animals and also protects the public health, safety, and welfare of the community. This Department, which began operating in May 2006, is committed to building a community in which every adoptable pet finds a responsible home. Animal Care and Services also provides Field Services that handles requests for service on a priority response basis such as vicious/aggressive animals, injured animals, confined strays, and the pick-up of stray deceased animals. Animal Services Officers are also empowered to investigate complaints such as nuisance animals, leash law violations, and inhumane conditions. The Department provides emergency services for injured or sick stray pets, vicious/aggressive animals, and police and fire assistance on a 24/7 basis. Community involvement is an important component for the Animal Care and Services Department. This includes the development of a strong volunteer program, a foster care program, working with rescue groups and other Centers, attending community events, and adoption promotions. Because of the state of the economy, the AC&SD cared for elevated numbers of homeless pets again this year with 5,531 homeless pets needing the Department's services. As a comparison, in the City`s first full year of operation in FY 2007/08, the Department received 4,975 homeless pets. Despite the increase in intake, as a result of the Department's various programs discussed below, the Department was able to increase adoptions by 21% (2,584 in FY 2009/10 up from 2,143 in FY 2008/09), increase overall placements by 1% (4,191 in FY 2009/10 up from 4,144 in FY 2008/09), and reduce euthanasia by 21% (863 in FY 2009/10 down from 1,094 in FY xxiv December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 2008/09). Because of the economy most other animal services organizations have seen decreased adoptions and increased euthanasia. Volunteers The Department offers a wide variety of volunteer opportunities in areas such as dog walking, cat socialization, basic dog training, bathing and grooming, as well as traditional opportunities such as computer services, clerical and cleaning. Volunteers make an important contribution to the success of our programs. Some programs, such as dog walking and our pit promotions, are run entirely with volunteers. They have contributed 10,961 hours of service in 2009/10. Adoption Promotion/Increasing Adoptability The Department increased adoption promotions using both value-added and price point strategies. Since they are the most difficult breed type to place our initial focus was on pit bulls, running several promotions this year. The Pit Idol Promotion was carried by two national organizations on their websites and raised funding from as far away as Minnesota. It also helped the Department to qualify for a grant to further efforts to adopt pit bulls which will be received in this fiscal year. The Department also took part in a national ad campaign sponsored by the Ad Council which ran ads in national media promoting shelter adoptions and increased the number of rescue partners. In addition to promoting adoptions, the Department instituted several promotions to make our pets more appealing to the public including obedience classes for our pit bulls; upgrading the training for our dog walking volunteers; and increasing the pets in foster care by 18%. Medical Services Our veterinarian has expanded the types of surgeries we are able to perform to include orthopedic surgeries. In addition to the x-ray machine which was installed as part of the phase two construction, we have acquired additional surgical instruments and our veterinarian has received training in some orthopedic techniques. Because these procedures are expensive, previously we were limited in the number we could fund. Community Resources The Department sponsored several fundraising events this year and continued attempts to reach out to the community. The Department has increased professional involvement with the Animal Center currently partnering with a trainer,two groomers, and a multiservice facility. Program Growth The Department is doing more outreach to the community by taking adoptable pets to more locations, at least one every weekend, including areas outside the City such as Glendora and Fontana. We have added new partners such as PetsMart locations, cat shows, and pet expos. These activities show our adoptable pets to a broader audience than would be able to see them at the Center. One of our goals this year was to increase educational programs aimed at children under 12. In cooperation with Victoria Gardens, we are members of the VG Kidz Club which gives us the xxv December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga opportunity to participate in child oriented educational programs at Victoria Gardens. In partnership with the RC Library, Tales to Tails Program, we are bringing dogs from the Center to help children with reading problems. Reading to a pet helps children to improve reading skills and builds bonds between children and pets. Two additional programs which are important to our placement of adoptable pets are our foster and rescue programs. Our foster program takes pets such as kittens which are too young for adoption and places them in temporary homes until they are able to be adopted. Our rescue program is a partnership with private, nonprofit groups who take pets from the center and place them in suitable homes. The Department has increased our foster program by 7% and our rescue program by 25%. Field Services In November we initiated an Educational Outreach Program in which Department employees go door to door to educate citizens on licensing, spaying and neutering, and Animal Care and Services Department programs. As mentioned previously, this program enables employees to have one on one conversations stressing the importance of such topics as identification, spaying and neutering, and what to do when a pet is lost. Additionally, all city residents will be given a brochure with the Department's services, hours of operation, and contact information. In addition to education,this will increase the department's visibility. Because we are one of the newest City departments we still find that many citizens are not aware of us and the services we provide. Additionally, we have partnered with Northtown Housing Development Corporation in the Northtown and Los Amigos areas. In the past year our return to owner rates for stray dogs has increased by 23%. We attribute this to our increased outreach,publicity, and internet presence where stray pets can be seen 24/7. Spay and Neuter Program In conjunction with our Educational Outreach Program, the Department partnered with two local veterinarians to offer very reduced price spay and neuter surgeries targeted to areas that, due to economic conditions, would have price as the major deterrent to having pets spayed or neutered. This was in addition to our voucher program which is offered to all city residents and it reduces the price of spaying and neutering pets. By pairing this program with our Educational Outreach Program, our employees can have one on one conversations with the owners of dogs who are not spayed or neutered and inform them of the benefits for the owner such as reduced license fees and healthier pets which are safer, less expensive to keep, and easier to handle. Increased Medical Program Resources Our surgical program has quickly reached capacity, averaging about 55 to 60 spay and neuters a week plus restoration and corrective surgeries. To help with the work load without increasing costs, our veterinarian has formed partnerships with the following educational institutions to provide students to help in the surgical and medical areas at no cost to the Department: • Western University—4th year veterinary students • Mt. Sac RVT program—RVT students xxvi December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Western Health Sciences ROP program—RVT students • Volunteer Veterinarians from the community looking to increase surgical skills Administrative Services: Administrative Services is unique in comparison to other City departments in that it is a "staff' department as opposed to a "line" department. While line departments typically provide services only to the public, the Administrative Services Department provides services and support primarily to internal staff (including the City Council, the City Manager, the various City departments and employees) with some service areas crossing over into the public arena. The department's major service areas are: Administration,Finance, Treasury Management,Personnel, Risk Management, Purchasing, Business Licenses, Special District Administration, Geographical Information Systems, and Information Services. The Administrative Services Department continued making progress on projects that were started during the previous fiscal year as well as some new projects initiated during the 2009/10 fiscal year. A summary of each of these projects by division follows. Administration Division: One of the responsibilities of the Administration Division is to facilitate and coordinate intra- and inter-departmental programs. During this fiscal year, the Division facilitated numerous training programs including the Leadership Academy and the Supervisory Training Program, continued to revamp the new employee orientation, facilitated the installation of an informational kiosk outside of City Hall, and facilitated the implementation of an Automated Vehicle Locator (AVL) System to ensure the City's resources are allocated in the most efficient, effective, and safe manner as possible. For the upcoming fiscal year, efforts will be focused on supporting the City Manager's Office initiatives to develop mid-managers, enhance employee recognition, improve employee communication efforts, and improve leadership through focused coaching and strategic goal setting efforts. Business License Division: The Business License Division of the Administrative Services Department ensures compliance with City codes as they relate to business licenses, transient occupancy and admission taxes. During Fiscal Year 2009/10 staff processed approximately 10,530 business license applications (8,263 renewals and 2,267 new filings), inspected 2,369 businesses, and collected revenues totaling$2,193,712. Finance Division: The Finance Division of the Administrative Services Department provides for the administration of financial activities such as payroll, accounts payable, accounts receivable, audits, preparation and monitoring of the budget, revenue recording and tracking, preparation of financial statements, and the establishment and maintenance of a fixed asset inventory. Finance is also responsible for business licensing and treasury management. During Fiscal Year 2009/10, the Finance Division was notified that the City received its twenty- second consecutive Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting. See additional discussion of this prestigious award under section III.Awards and Acknowledgements. xxvii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Geographic Information Systems/Special Districts Division: The Geographic Information Systems/Special Districts Division of the Administrative Services Department manages all the City's special assessment districts and provides geographical mapping of all City functions including engineering,planning and building and safety. During this period, the GIS/Special Districts Division worked with the Police Department to improve and add additional features to the mapping application that will be used for emergency situations in schools in the City; provided mapping for the Healthy RC Kids project that identified locations including the Southwest are, businesses such as grocery, corner stores, and fast food restaurants, and potential locations for a Farmer's Market and Community Garden in the area of interest and in the City; developed a mobile field application to assist the weed abatement inspector track parcels that were not in compliance; and created a comprehensive Special Districts Internet Webpage that offers descriptions of the Districts, Engineer's Reports, Resolutions,maps and other useful special districts links. The City of Rancho Cucamonga was honored on July 14, 2010 at the annual ESRI International Users Conference in San Diego with a Special Achievement in GIS (SAG) Award for The Rancho Cucamonga Geographic Information System (REGIS). This award is given to organizations for embracing GIS technology and using it to improve our world and set new precedents throughout the GIS Community. The award ceremony is presided over by Jack Dangermond, the president and founder of ESRI. Recipients of the Special Achievement in GIS award are submitted by ESRI staff from thousands of organizations worldwide, then personally reviewed and selected by Jack. The Rancho Enterprise Geographic Information System (REGIS) is an enterprise system designed to centralize the various geospatial data collected by the departments in a central repository, where updated data, critical to departments, could be maintained and shared to ensure data integrity. The other intent for REGIS is to provide mapping support and data analysis to all city departments to aid in their daily operations. The capabilities of REGIS are made available to all the city departments in a series of Web service applications and map books. Human Resources Division: The Human Resources Division is responsible for recruitment and retention of quality employees and administration of a comprehensive employee benefit program. The Division facilitated 15 full-time and 39 part-time recruitments during the 2009/10 fiscal year. Information Services Division: The Information Services Division of the Administrative Services Department provides research and development in client server computer and personal computer applications. The Information Services Division continues to strive to be on the cutting edge of technology, thus increasing the productivity and service levels to the City users and patrons. The advances described are designed to progressively build upon the City's technology base to improve, expand and respond to the demands of the public for vital services in police, fire, safe roads, youth and adult recreation, tax and financial transactions, community and home development and many more. During this period, the Information Services Division assisted the Fire District with the transition of dispatch related services from the City of Ontario to CONFIRE; collaborated to re-design our public internet web sites to provide enhanced navigation and improved services to the public, creating a virtual City Hall; and participated in the automation of computer-based weed abatement services to assist in the transition of these functions from the County of San xxviii December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Bernardino; and worked with the Finance Division to expand the use of electronic timecards by City staff to improve efficiency by Payroll staff and staff in the various City departments. On- going projects include implementation of Citizen Relations Management services; and a Virtual Desktop Infrastructure (VDI) pilot to evaluate a complementary approach to our traditional desktop computer lifecycle strategy. Purchasing Division: The Purchasing Division of the Administrative Services Department is authorized to procure services or goods at the best price, from the most responsive and responsible vendor. It acts as the City's centralized procurement agent and authorizes all City purchases by ordinance requirements. It is also charged with the disposition of surplus or obsolete property as well as responsibility for the City's telecommunication needs. During this period, the Purchasing Division was awarded the annual National Purchsing Institute's (NPI) "Achievement of Excellence in Procurement(AEP)" award for 2009, the second consecutive year the Division has received this award. As a result, the Purchasing Division is nationally recognized as an organization that practices excellence in innovation,professionalism, productivity, e-procurement and leadership. Some of the major projects that the Division worked on during the year were a Request for Bid for Landscape Maintenance Districts 1, 2, 4, and 5 which ultimately resulted in an annual savings of approximately $300,000 per year for the next five years; and a vendor outreach event in January of 2010 to educate the business community on how to do business with the City. Risk Management Division: The Risk Management Division is responsible for ensuring employee safety, the prompt and fair delivery of workers compensation benefits, risk assessment and cost effective risk transfer when appropriate, litigation management, and the fair and fiscally responsible analysis of third-party claims. Treasury Management Division: The Treasury Management Division, in accordance with the "Prudent Person Rule," invests and monitors all idle funds to maximize and safeguard taxpayer dollars. During the 2009/10 fiscal year, the Division completed the process of soliciting authorized broker/dealers to be added to the City's current approved list for the City's pooled investment services. Expanding the approved list will enable Treasury Management staff to explore an added value of services and cause brokers to be more competitive. III. AWARDS AND ACKNOWLEDGEMENTS 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 Rancho Cucamonga for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2009. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. 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. xxlx December 20,2010 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga A Certificate of Achievement is valid for a period of one year only. The City of Rancho Cucamonga has received a Certificate of Achievement for the last twenty-two consecutive years. We believe that our current comprehensive annual report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not have been accomplished without the efficient and dedicated service of the entire staff of the Finance Department and the administrative staff of the Administrative Services Department. We appreciate and would like to commend all the City departments who assisted and contributed material to this document. We also recognize and would like to acknowledge the Mayor and members of the City Council for their interest, dedication, and constant support in planning and conducting the fmancial operations of the City in a responsible and progressive manner. Respectfully submitted, Jack Lain, A1CP Tamara L. Layne City Manager Finance Director xxx CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUKE 30,2010 CITY COUNCIL Name Term Expires Donald J. Kurth,M.D. Mayor 2010 L. Dennis Michael Mayor Pro-Tem 2012 Rex Guitierrez Council Member 2010 Sam Spagnolo Council Member 2012 Diane Williams Council Member 2010 ADMINISTRATION AND DEPARTMENT HEADS City Manager and Executive Director of the Rancho Cucamonga Redevelopment Agency Jack Lam Assistant City Manager John Gillison Deputy City Manager/Administrative Services Vacant Deputy City Manager/Economic and Community Development Linda Daniels City and Redevelopment Agency Attorney James L. Markman Treasurer(term expires 2012) James Frost City Clerk(term expires 2012) Janice C. Reynolds Animal Services Director Joe Pulcinella Building and Safety Official Trang Huynh Community Services Director Kevin McArdle Engineering Services Director/City Engineer Mark Steuer Finance Director Tamara L. Layne Fire Chief Mike Bell Library Director Robert Karatsu Planning Director James Troyer Police Chief Joe Cusimano Public Works Services Director Bill Wittkopf xxxi c a � o � mQ V V d d v � a � aQi ° Y _ m a � � V +-� V) _ _ w � o � ay U m i ayi i •= a y a � co 1� N .V V � � a a xxxii Certificate of Achievement for Excellence in Financial Reporting Presented to City of Rancho Cucamonga California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2008 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports(CAFRs)achieve the highest standards in government accounting and financial reporting. 4 PNGF.OF,rjC 5 . - Q� UNiT EAO TN ,pT = y W u+STATES o H 6 `""A°A President fARP0.RAT��M� SEAL [NtCA4o ,Q Executive Director Xxxiii THIS PAGE INTENTIONALLY LEFT BLANK xxxiv City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2010 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LS •000 •000 •• CERTIFIED PUBLIC ACCOUNTANTS Brandon W.Burrows,CPA Donald L.Parker,CPA Michael K.Chu,CPA David E.Hale,CPA,CFP A Professional Corporation Donald G.Slater,CPA Richard K.Kikuchi,CPA Susan F.Matz,CPA Shelly K.Jackley,CPA INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, 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 Rancho Cucamonga, California, 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 of Rancho Cucamonga'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 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, the business-type activities, each major fund and the aggregate remaining fund information of the City of Rancho Cucamonga as of June 30, 2010, and the respective changes in financial position and cash flows where applicable thereof, and the respective budgetary comparison for the General Fund and Fire District Special Revenue Fund for the 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 21, 2010, on our consideration of the City of Rancho Cucamonga's internal control over financial reporting and our tests of its compliance with certain laws, regulations, contracts, 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. The management's discussion and analysis and the budgetary comparisons are not required parts of the basic financial statements but are 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 it. Lance,Sall&Lunghard,LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.lslepas.com 41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940 LSL 0 CEOTIFIEO PNBUG ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California 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 introductory section, the combining and individual fund statements, schedules and statistical tables are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements, and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. The accompanying introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. December 21, 2010 2 CITY OF RANCHO CUCAMONGA MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Rancho Cucamonga ("City"), we provide for the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2010. Since the Management's Discussion and Analysis (MD&A) is designed to focus on the current year's activities, resulting changes and currently known facts, we encourage the readers to consider the information presented here in conjunction with additional information furnished in the Letter of Transmittal and the accompanying basic financial statements. This is the seventh consecutive year that the City has issued financial statements pursuant to Statement No. 34 of the Governmental Accounting Standards Board (GASB 34). Comparative data on the government-wide financial statements are only presented in the MD&A. Overview of the Financial Statements The City is required to present its financial statements in accordance with Generally Accepted Accounting Principles (GAAP), which includes complying with the Governmental Accounting Standards Board (GASB) pronouncements. In 2003, the City was required to implement GASB Statement No. 34 (GASB 34) which required the City to add new financial reports with a new format to the existing published Comprehensive Annual Financial Report (CAFR). The new financial reporting format includes the Government-wide Financial Statements, which are comprised of the Statement of Net Assets and the Statement of Activities (explained below), and the original reporting format, which is the Fund Financial Statements (explained on page 4), combined into a single unified format. These two statements combined with the notes to the financial statements comprise the City's basic financial statements. This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. This report also contains certain supplementary information to the basic financial statements. Government-wide Financial Statements Government-wide financial statements include the City and its component units. As stated in Note 1.a. of the notes to the financial statements, the inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga, as either blended or separately shown, is based on the provisions of GASB Statement No. 14 The Financial Reporting Entity. Although legally separate, component units function for all practical purposes as departments of the City and, therefore, have been blended as part of the primary government. The City's component units are the Rancho Cucamonga Redevelopment Agency, the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. These statements are designed to provide information about the activities of the City as a whole and present a longer-term view of the City's finances. This longer-term view is intended to illustrate the City's ability to continue functioning as a viable entity well beyond the next fiscal year's operations. The statements are prepared using the accrual basis of accounting. The accrual basis of accounting considers money available when earned and considers money spent when a liability is incurred. As such, this basis of accounting focuses on measuring economic resources that are available to the City regardless of the timing of the availability of those resources. For example, grant revenue may have been earned as of fiscal year end but may not be received until several months subsequent to fiscal year end. Under the accrual basis of accounting, this revenue would be recognized as a resource available to the City as of fiscal year end, even though the actual cash is not received for several months. An example related to expenditures would be the City's accrued interest liability. This liability is recognized as a usage of the City's resources as of fiscal year end, even though the actual cash payment will occur over an extended period of time. The accrual basis of accounting is similar to that used by most private sector companies. Accordingly, all of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, these statements reflect the capitalization and depreciation of infrastructure and other capital assets (e.g., buildings, vehicles, furniture and fixtures, etc.) as well as the recognition of various long-term liabilities (e.g., bonds payable, accrued employee benefits, claims and judgments payable, etc.). 3 The government-wide financial statements distinguish functions of the City that are principally supported by taxes, intergovernmental and use of money and property revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety- police, public safety - fire protection, public safety — animal center, community development, community services, and engineering and public works. The City's business-type activities include the Sports Complex and Municipal Utility operations. The statement of net assets presents information on all of the City's assets and liabilities, with the excess of assets over liabilities reported as net assets. This statement includes changes in "capitalized and depreciated" capital assets. The purpose behind the statement of net assets is that, over time, increases or decreases in the net assets are one potential useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent 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 related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows (both positive and negative) in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both the governmental activities and the business-type activities are presented on the accrual basis of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting. The government-wide financial statements can be found on pages 17 through 19 of this report. Fund 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. The fund financial statements provide detailed information about the most significant funds and other funds — not the City as a whole. Some funds are required by state law and by bond covenants. In addition, in order to meet legal responsibilities for using certain taxes, grants, and other resources, prudent fiscal management requires the establishment of other funds to help control and manage money. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. By contrast to the government-wide financial statements, the governmental fund financial statements, a part of the Fund Financial Statements, use the modified accrual basis of accounting which considers money available when it is collectible within the current period or soon enough thereafter (60 days after the end of the current fiscal period, with the exception of certain intergovernmental revenues which is 310 days) to pay liabilities of the current period. Expenses are recorded when a liability is incurred. Debt service, claims and judgments, and accrued employee leave benefits are not recorded as liabilities, they are expensed at the time a payment is due. Note 1.c. of the notes to the Financial Statements more fully describes each basis of accounting. Governmental funds. Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. The governmental fund financial statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences between the results in the governmental fund financial statements and those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement (see pages 23 and 26 of this report). The City maintains 68 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, the Fire District Special Revenue Fund, the Redevelopment 4 Agency Capital Project Fund, and the Redevelopment Agency Debt Service Fund, all of which are considered major funds. Major funds determination is based on guidelines established by GASB 34. Data for the other 64 governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 20 through 25 of this report. Individual fund data for each of the non-major governmental funds is provided in the form of combining statements and can be found on pages 82 through 116 in this report. The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided to demonstrate compliance with this budget. This comparison can be found on page 27 of this report. Proprietary funds. When the City charges customers fees to cover the cost of the services it provides, these services are generally reported in proprietary funds. The City maintains two different types of proprietary funds: enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. "Enterprise" refers to the fund type while `business-type" refers to the activity type. The City uses enterprise funds to account for its Sports Complex and Municipal Utility operations. Internal service funds by contrast are an accounting mechanism used to accumulate and allocate costs internally among the City's various functions. The City uses internal service funds to account for vehicle/equipment replacement and computer equipment/technology replacement. Because these services predominantly involve governmental rather than business-type activities, this fund type has been included within governmental activities in the government-wide financial statements. Internal service funds are presented as proprietary funds because both enterprise and internal service funds follow the accrual basis of accounting. In the fund financial statements section, proprietary funds provide similar information to that contained in the business-type activities in the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Sports Complex and Municipal Utility operations, both of which are considered to be major funds of the City. All internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements and can be found on pages 172 through 174 in this report. The basic proprietary fund financial statements can be found on pages 29 through 31 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. In these cases, the City has a fiduciary responsibility and is acting as a trustee. Fiduciary funds are not reflected in the government-wide financial statements because the resources of these funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets on page 32 of this report. The fiduciary fund type that the City maintains is an agency fund. An agency fund is a fund used to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/or other funds. Individual fund data for each of these agency funds is provided in the form of combining statements found on pages 178 through 194 of this report. 5 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 begin on page 33 of this report. Government-wide Financial Analysis Our analysis focuses on the City's net assets (Table 1) and the changes in net assets (Table 2) as a result of the City's activities. Comparative total data for the prior year has been presented. An analysis of the significant increases/decreases from the prior year is provided after each table. TABLE 1 NET ASSETS (IN THOUSANDS) As of June 30 Governmental Business-Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Current and other assets $ 739,189 $ 731,600 $ 4,489 $ 3,184 $ 743,678 $ 734,784 Capital assets,net 721,567 690,992 29,733 30,555 751,300 721,547 TOTAL ASSETS 1,460,756 1,422,592 34,222 33,739 1,494,978 1,456,331 Long-term liabilities outstanding 439,835 449,229 - - 439,835 449,229 Other liabilities 23,439 29,927 1,038 1,044 24,477 30,971 TOTAL LIABILITIES 463,274 479,156 1,038 1,044 464,312 480,200 Net assets: Invested in capital assets, net of related debt 402,124 291,593 29,733 30,555 431,857 322,148 Restricted 473,381 530,011 1,318 680 474,699 530,691 Unrestricted 121,977 121,832 2,134 1,459 124,111 123,291 TOTAL NET ASSETS $ 997,482 $ 943,436 $ 33,185 $ 32,694 $ 1,030,667 $ 976,130 Net assets, the difference between a government's assets and its liabilities, may serve over time as one potential useful indicator of a government's financial position. Net assets includes the City's capital assets, cash balances, amounts receivable from other entities, and other similar resources offset by payments due to vendors, interest payable, long-term debt, and other similar obligations. In the case of the City, total assets (of which 50% represents capital assets of the City, including infrastructure) exceeded total liabilities by$1,030,666,645 at the close of the most recent fiscal year. The assets of both the governmental and the business-type activities at year end exceeded liabilities. A more detailed discussion of these results will be discussed in the following sections for both governmental and business-type activities. 6 The government's total net assets increased by $54,536,216, or 5.6%, during the current fiscal year, reflecting positive changes in both the governmental activities and the business-type activities of $54,045,868 and $490,348, respectively. Net assets were also increased by $476,377 for business-type activities as a result of a restatement related to accumulated depreciation for the Municipal Utility's capital assets (see Note 12 to the financial statements for additional information). The following is an explanation of the major changes: • Capital assets (e.g., infrastructure and other capital assets such as buildings, vehicles, furniture and fixtures, etc.) increased by $29,752,583, net of accumulated depreciation. The increase in capital assets is due to capital construction projects and infrastructure improvements such as major increases in the City's trail, road and storm drain systems. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. • Current and other assets (e.g., cash and investments, receivables, prepaid costs, cash with fiscal agent, etc.) increased by $8,895,280. This increase is due to an increase in notes and loans receivable of approximately$36.6 million to finance new and continuing redevelopment area projects and the accrual of interest for the various loan agreements entered into by the Redevelopment Agency to provide funding for affordable housing. There is also a $14.49 million increase which represents an OPEB asset due to the prefunding of the Fire District's OPEB liability. Both of these increases were offset with corresponding decreases in cash and investments. Additional activity contributing to the increase in current and other assets are: 1)accounts receivable increased $14.43 million due to anticipated reimbursement from SANBAG for the Haven Avenue Grade Separation project; and 2) cash and investments with fiscal agent decreased $4.18 million due to drawdowns on various Community Facilities District bond funds for capital improvements during the current year. • Long-term debt outstanding (e.g., bonds, Agency loans, claims and judgments payable, and accrued employee benefits) decreased by $9,394,495. This decrease was due primarily to principal payments on outstanding debt in the amount of$10,133,562. This decrease was offset by additional accrued interest for a developer loan in the amount of $700,536, a net increase in claims and judgments in the amount of $103,256, and a net increase in accrued employee benefits in the amount of$123,392. The remaining change is due to the amortization of bond premiums. • Other liabilities (e.g., accounts payable, accrued interest, due to other governments, etc.) decreased by $6,494,858. Accounts payable and accrued liabilities decreased $3.79 million combined due to the timing of payments at year end. 7 TABLE 2 CHANGES IN NET ASSETS (IN THOUSANDS) Year ended June 30 Governmental Business-Type Activities Activity Total 2010 2009 2010 2009 2010 2009 REVENUES: Program Revenues: Charges for services $ 14,628 $ 14,412 $ 11,518 $ 9,564 $ 26,146 $ 23,976 Operating grants and contributions 6,276 6,220 - 6,276 6,220 Capital grants and contributions 59,877 14,736 - 59,877 14,736 General Revenues: Taxes: Property taxes 152,193 155,631 - 152,193 155,631 Admissions taxes - - 12 18 12 18 Transient occupancy taxes 1,587 1,694 - 1,587 1,694 Sales taxes 21,586 23,208 - 21,586 23,208 Franchise taxes 5,708 7,392 - 5,708 7,392 Intergovernmental 522 640 - 522 640 Use of money and property 21,379 27,729 384 489 21,763 28,218 Other 5,054 5,074 33 19 5,087 5,093 TOTAL REVENUES 288,810 256,736 11,947 10,090 300,757 266,826 EXPENSES: General government 81,999 54,218 - 81,999 54,218 Public safety-police 27,425 28,253 - 27,425 28,253 Public safety-fire protection 26,526 24,669 - 26,526 24,669 Public safety-animal center 2,476 2,612 - 2,476 2,612 Community development 22,444 20,986 - 22,444 20,986 Community services 13,066 14,446 - 13,066 14,446 Engineering and public works 32,985 31,016 - 32,985 31,016 Interest on long term debt 28,387 23,945 - 28,387 23,945 Sports Complex - - 2,088 1,968 2,088 1,968 Municipal Utility - - 9,778 10,800 9,778 10,800 TOTAL EXPENSES 235,308 200,145 11,866 12,768 247,174 212,913 INCREASE (DECREASE) IN NET ASSETS BEFORE TRANSFERS 53,502 56,591 81 (2,678) 53,583 53,913 TRANSFERS 67 (468) (67) 468 - - INCREASE(DECREASE) IN NET ASSETS 53,569 56,123 14 (2,210) 53,583 53,913 Restatement of Net Assets(See Note 12) 476 13,220 476 391 952 13,611 Change in Net Assets from Prior Year $ 54,045 $ 69,343 $ 490 $ (1,819) $ 54,535 $ 67,524 8 The above condensed statement of activities of the City's governmental and business-type operations for the period ended June 30, 2010 shows total net assets increased by $53,583,440. Governmental activities increased the City of Rancho Cucamonga's net assets by $53,569,469, accounting for 99.97% of the total growth in net assets. In addition to the current year's activities, net assets were further increased by $952,776 as a result of required accounting adjustments occurring at the beginning of the fiscal year (see Note 12 to the financial statements for additional information). Net assets in the prior fiscal year increased by $53,912,415 based on the results of operations and were increased by $13,610,940 as a result of required accounting adjustments. In order of total dollar amount of change, the most significant changes in revenue were in the categories of capital grants and contributions; use of money and property; property taxes; charges for services; franchise taxes; and sales taxes. • The increase in capital contributions and grants of$45,141,015 is primarily due to the capitalization of right of ways in the amount of approximately $23.36 million contributed by developers. This was a $17.87 million increase in this type of transaction over the prior year. Additionally, a $13.856 million intergovernmental reimbursement was recognized in the current year for the Haven Avenue Grade Separation project with an additional $2.56 million being recognized for other infrastructure improvements. Revenues in the amount of $10.087 million were recognized to move funds to be utilized for undergrounding utilities from an agency fund to a special revenue fund. • The decrease in property taxes of$3,438,287 is due primarily to property tax assessments adjusting to the broader real estate market decline. Included in the decrease in general property taxes is property tax increment revenue ($1.0 million)which is received by the Redevelopment Agency and is restricted as to its use because 20% must pay for affordable housing and 80% must pay for debt service. The remaining decrease in general property taxes relates primarily to the Fire District and the City's General Fund. • The increase in charges for services ($2.17 million) is primarily due to a $1.29 million increase in wholesale energy sales due to a more favorable market in 2010. Additionally, charges for services grew$627,960 due to increased commodity fees being charged by the Municipal Utility. • The decrease in use of money and property ($6.35 million), sales taxes ($1.62 million), and franchise taxes ($1.68 million) are all a result of the economic downturn which began in December 2008. Interest rates have continued to decline and many of the City's higher yielding longer-term investments have either matured or have been called. Sales tax revenue continued to decline due to the scarcity of consumer resources. Franchise taxes declined primarily in the area of natural gas ($902,550 of the decrease) due to reduced consumption by a local power plant with the remaining decline being primarily in commercial refuse ($371,300)and electricity($212,190). The most significant changes in expenses were in general government, engineering and public works, public safety—fire protection, community development, community services, and interest on long term debt. • General government expenses increased $27,781,651 primarily due to the required $32,109,879 payment to the County of San Bernardino (County) Supplemental Educational Revenue Augmentation Fund (SERAF) in accordance with SB 26. The funds were distributed to meet the State's Prop 98 obligations to schools. This increase was offset by a $2,455,676 decrease due to the prior year Etiwanda/San Sevaine Storm Drain project costs not recurring in the current year. Additionally, depreciation expense was $1.7 million lower in the current year than in the prior year. • Engineering and public works expenses increased $1,968,949 due to a $924,256 increase in depreciation expense and due to certain capital expenditures being reclassified from capital outlay to engineering and public works as a result of not meeting capitalization criteria. • Public safety — fire protection expenses increased $1,857,115 due to the following: 1) increased costs of approximately $509,800 incurred to fund the District's OPEB liability, primarily related to the 9 annual required contribution (ARC); a $312,250 increase in the District's claims and judgments liability; and 3) personnel, contract services, and operations and maintenance savings throughout the District's various divisions. The increase in the District's ARC will not recur in the next fiscal year, due to the District's prefunding of its OPEB liability during the current and most recent fiscal year. • Community development expenses increased $1,458,067 primarily due to a $1,933,818 increase in depreciation expense offset by savings in contract services for the City's various Landscape Maintenance Districts and attrition management savings. • Community services expenditures decreased $1,379,963 due to a $409,755 decrease in contract services for Cultural Center programs as a result of different shows being offered from the prior year, the winding down of the replacement of dated material at the Archibald Library, and attrition management savings. • Interest on long-term debt expenses increased $4,441,514 which represents a net increase in the interest charged on an interfund loan offset by decreasing interest payments on other long-term debt outstanding. The following presents the cost of each of the City's seven governmental activities— general government, public safety— police, public safety—fire protection, public safety— animal center, community development, community services, engineering and public works, and interest on long-term debt. Revenue generated by these programs consists of charges for services, operating contributions and grants, and capital contributions and grants. Expenses consist of the total expenses for the governmental activities which include expenses unrelated to program revenues. The net cost of services (total cost less revenues generated by the activities) is the amount that was paid from general revenues, i.e., revenues not related to a specific function or program. Governmental Activities (I n Thousands) Total Cost Net Cost of Services of Services 2010 2009 2010 2009 General government $ 81,999 $ 54,218 $ (78,944) $ (55,634) Publicsafety-police 27,425 28,253 (25,919) (26,078) Publicsafety-fire protection 26,526 24,669 (25,020) (23,490) Publicsafety-animal center 2,476 2,612 (2,024) (2,181) Community development 22,444 20,986 (18,493) (18,646) Community services 13,066 14,446 (8,752) (9,921) Engineering and public works 32,985 31,016 33,013 (10,367) Intereston long-term debt 28,387 23,945 (28,387) (23,945) Total $ 235,308 $ 200,145 $ (154,526) $ (170,262) 10 Financial Analysis of the Government's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The following financial analysis is performed only for the governmental and proprietary funds. The fiduciary funds are excluded from this analysis as they do not represent resources available to the City. 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 financing requirements. In particular, designated and 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. On pages 20 and 21, the governmental funds balance sheet is shown. The combined fund balance of $613,573,914 decreased $21,156,356 or 3.3%. The combined fund balance of $613,573,914 represents the beginning point for the reconciliation of the balance sheet of governmental funds to the statement of net assets detailed on page 17 of this report. This total includes the General Fund balance of $73,363,467, which decreased by $18,951,765 from the prior year. The City's General Fund balance has reserves of $10,779,783 of which $9,821,226 is for advances, $934,207 is for encumbrances, $4,350 is for prepaid costs, and $20,000 is for deposits. Funds that are categorized as reserved are not available as spendable resources or they are legally segregated for a specific use. $62,583,684 has been designated in the General Fund indicating the City Council's plans for the future usage of City resources, according to the policies enumerated below: These policies ensure a prudent level of protection for the finances of the City in times of emergencies, revenue declines, and other unforeseen events. Certain designated funds enable the organization to operate in a business-like structure to address future liabilities while certain other designated funds help to support the City's credit rating which is also important to promote fiscal excellence. • Designated for changes in economic circumstances: The designation for changes in economic circumstances is the reserve that is often referred to by the general public when a reference is made as to the amount of a City's reserve. This is the "savings account" of non-recurring revenue that would be utilized should an economic downturn or an emergency occur, and it is one of the major factors that rating agencies consider when rating a city's fiscal health. • Designated for City facilities'capital repair: The City facilities' capital repair funding goal mirrors the industry standard of 15% of capital asset value. All capital repairs for all City facilities and buildings are funded independently of the General Fund, which only pays for routine annual operational maintenance. • Designated for self-insurance: This designation is fully funded with all current claims generally being paid from interest earnings on the fund. As such, the fund is basically self-funding. General liability claims, therefore, do not impact the General Fund, which only budgets for major loss insurance premiums. • Designated for working capital: The working capital designation is intended to provide sufficient liquidity for the City's day-to-day operations so that fluctuations in revenue receipts throughout the year will not disrupt the City's investment portfolio. Thus, the City is able to avoid having to borrow for operations. The funding level for this reserve has been established by the City Council at 5% of the City's General Fund budget for the upcoming fiscal year. • Designated for long-term employee leave payouts: This designation sets aside funding for the long-term portion of future employee leave payouts such as sick leave, vacation, etc., and is separate from recurring personnel costs. • Designated for law enforcement: This designation represents Police Department fund balance used to facilitate unexpected equipment, facilities, or other law enforcement needs within the community. 11 • Designated for contract development services: This designation is comprised of AB 1600 development fees that can only be used annually for development processing services and must be segregated to ensure compliance with AB 1600. • Designated for booking fees: This designation represents funds set aside to offset future anticipated cost increases in the fees that the County of San Bernardino charges the City for the booking of prisoners. • Designated for sphere of influence and multi-species habitat plan: These designations provide funding to enable the City to meet our commitment for processing these two important programs in partnership with the County. Council actions have created the City's involvement with these two policy areas. • Designated for -guaranteed investment contract: This designation represents funds that were invested in a Guaranteed Investment Contract (GIC) in order to generate an interest revenue flow to assist in funding contractual labor agreements during a time period in which the City's budgeted revenue was experiencing unusual fluctuation. These funds are not available for withdrawal until FY 2009/10 and have already been committed by the City Council to fully fund the Fire District's GASB 45 liability at that time. • Designated for information technology: This designation is comprised of the net of Information Technology Fee revenues which are governed by AB1600 and the related expenditures to enhance technology for the Community Development departments. • Designated for capital proiects: This designation represents funds set aside by the City Council to complete specific capital projects. • Designated for-general plan update: This designation is comprised of General Plan Update Fee revenues which are governed by AB1600. The revenues will be accumulated for the eventual funding of the next General Plan update for the City. • Designated for spay/neuter program: This designation is comprised of funding set aside to provide future enhancements to the Animal Center's spay and neuter program. • Designated for unrealized pain on investments: This designation offsets the valuation allowance recorded at fiscal year end to mark the City's investment portfolio to market value. • Designed for radio system acquisition: This designation represents funds set aside for the replacement of the City's 800 MHZ radio equipment. • Designed for mobile home park program: This designation is comprised of the net of Mobile Home Lot Fees and the related expenditures to enforce California Health and Safety Codes pertaining to the eight mobile home parks in the City of Rancho Cucamonga. The balance sheet presents three other major funds, the Fire District Special Revenue Fund, the Redevelopment Agency Capital Project Fund and the Redevelopment Agency Debt Service Fund. The Fire District Special Revenue Fund (inclusive of the Fire District's General Fund, Community Facilities District (CFD) 85-1 Fund, and Community Facilities District (CFD) 88-1 Fund) has a fund balance of $16,448,564, which decreased by $241,167 from the prior year. The Fire District's General Fund utilized $399,350 of fund balance due to less than anticipated property tax revenues and interest earnings offset by higher than anticipated fire permit revenues, salary savings, contract services savings, and less than anticipated costs for fuel and utilities. The Fire District's CFD 85-1 contributed approximately $179,912 to fund balance due to savings in contact services and slightly higher than anticipated assessment revenues. The Fire District Special Revenue Fund fund balance has reserves of $750,478, of which $691,292 is for encumbrances and $59,186 is for prepaid costs. There is also $15,698,086 designated in the Fire District Special Revenue Fund indicating the City Council's plans for the future usage of the District's resources for capital projects (including construction of Station 7), vehicle and equipment replacement, employee leave payouts, land acquisition, working capital, and PIERS rate stabilization. 12 The Redevelopment Agency's Capital Project Fund has a fund balance of $289,816,959, which decreased by $4,615,140 from the prior year. The decrease is mainly due to declining interest earnings on the Agency's cash and investment. The Redevelopment Agency's capital project fund balance has reserves of $141,758,201 of which $11,684,357 is for encumbrances, $4,441,829 is for land held for resale, $121,707,916 is for long-term notes and loans receivable, $3,953,624 is for advances to other funds, and $475 is for prepaid costs. It also has $148,058,758 designated for continuing projects related to affordable housing and the usage of bond proceeds. The Redevelopment Agency's Debt Service Fund has a fund balance of$142,263,354, which has decreased by $6,819,788 from the prior year. The decrease is due to the $32,109,879 SERAF payment to the County noted earlier offset by property tax increment exceeding general government and debt service expenditures. The Redevelopment Agency's debt service fund balance has reserves of $6,679,267 for encumbrances. It also has designated fund balance of $2,088,321 for vehicle and equipment replacement, $131,830,102 for debt service, and $1,665,664 for unrealized gain on investments. None of these funds has an unreserved/undesignated fund balance. The other governmental funds are what make up the remainder of the combined fund balance for all governmental funds. These funds consist of the City's 50 special revenue funds and 14 capital project funds. These funds have a combined fund balance of $91,681,570, which has increased by $9,471,504 from the prior year, primarily due to the $10.087 million of revenues that were recognized to move funds to be utilized for undergrounding utilities from an agency fund to a special revenue fund. The other governmental funds have a reserved fund balance of$1,979,790 for encumbrances. While the special revenue funds have a combined unreserved/undesignated fund balance of $90,401,811, and the capital project funds have a combined unreserved/undesignated fund balance of ($700,031), it should be noted that unreserved/undesignated fund balances in special revenue and capital project funds must be utilized for specific purposes and are not available for general City operations. Most such funds are accumulated over time until they are sufficient to pay for planned capital and infrastructure projects. Proprietary Funds. The City's proprietary funds consist of two major enterprise funds and two internal service funds. The two major enterprise funds are the Sports Complex Fund, which accounts for the activities of the Sports Complex, and the Municipal Utility Fund, which accounts for the City's electric utility operations. The internal service funds are the Vehicle and Equipment Replacement Fund and the Computer Equipment/Technology Replacement Fund. Net assets for the enterprise funds are $33,251,313 of which $29,732,535 represents the amount invested in capital assets and $1,318,141 represents the amount for public benefit. Unrestricted net assets amount to $2,200,637. The increase in net assets for the enterprise funds is $490,348, after restatements of$476,377 (see Note 12 to the financial statements for further detail of the restatements), as a result of routine operations and services from the Municipal Utility. Net assets for the internal service funds are $16,903,510, of which $4,919,846 represents the amount invested in capital assets. Unrestricted net assets amount to $11,983,664, which will be used to cover future vehicle and equipment and computer equipment/technology replacements. Total net assets decreased for these funds by$1,692,616 due to replacement needs exceeding current year user charges. 13 General Fund Budgetary Highlights During the year, with the recommendation from the City's staff, the City Council may revise the City's budget as needed. Adjustments were made periodically as additional appropriations were necessary to cover the cost of projects that either had required change orders for additional work, or the estimated cost at the beginning of the project changed due to external factors. Adjustments were also made through increases or decreases to budgets in order to maintain the current level of services. For example, increased development activity may result in the need to utilize additional contract inspector services to handle the additional workload. All amendments that either increase or decrease appropriations are approved by the City Council. For the City's General Fund, ending revenues of $61,947,831 were $625,249 less than the final budgeted revenues of $62,573,080. This negative variance was primarily due to less than anticipated tax revenue, charges for services, and interest earnings as a result of the economic downturn, which is offset by the effects of GASB 31 (fair value of investments). The remaining difference is due to offsetting variances within other line items. The General Fund's actual ending expenditures of $81,833,803 were $2,768,457 less than the final budget of $84,602,260. The main contributor to the savings across the departments was the City's attrition management program in which all vacant positions were reviewed and determined whether to be refilled or to remain vacant. The program resulted in most vacant positions not being filled in the current year. The program rendered salary and benefits savings among all departments, yet ensured the least amount of internal organizational disruption. There was also savings of$431,958 in public safety—police, primarily due to vacancies not being filled at the County Sheriff level which resulted in contract savings to the City. Community development— planning had a positive budget variance of$416,164 due to less than anticipated requests for contract inspections. There were also savings in contract services across departments. Capital Assets and Debt Administration Capital Assets As stated in the Overview of the Financial Statements, the new financial statement format required by GASB 34 reflects the capitalization and depreciation of infrastructure and other capital assets (e.g., buildings, vehicles, furniture and fixtures, etc.). At the end of the fiscal year, the City had $751,299,890 invested in a broad range of capital assets (see Table 3 below). This amount represents a net increase (including additions and deductions) of $29,752,581. 14 TABLE 3 CAPITAL ASSETS ATYEAR-END (NET OF DEPRECIATION,IN THOUSANDS) For the year ended June 30 Governmental Business-Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Land $ 83,403 $ 83,196 $ 5,451 $ 5,451 $ 88,854 $ 88,647 Right-of-way 223,219 223,219 - - 223,219 223,219 Construction in progress 33,695 20,973 - - 33,695 20,973 Buildings and improvements 122,701 121,400 10,370 10,990 133,071 132,390 Equipment and vehicles 10,268 11,389 38 47 10,306 11,436 Furniture and fixtures 1,372 1,683 45 53 1,417 1,736 Infrastructure 246,297 229,132 13,814 14,014 260,111 243,146 Intangible 612 - 14 626 - TOTALS $ 721,567 $ 690,992 $ 29,732 $ 30,555 $ 751,299 $ 721,547 The most significant change in capital assets for governmental activities is the increase in infrastructure of $17,165,439. The increases in infrastructure related to the acquisition of right of ways for streets and horse trails throughout the City, improvements to the City's streets and storm drains, traffic signal controller replacement, and library material additions. The most significant change for business-type activities is the depreciation of the various fixed assets. Additional information on the City's capital assets can be found Note 5 to in the financial statements. Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of$439,834,885 for bonds (RDA), loans (RDA), capital lease, claims and judgments payable, and accrued employee benefits compared to $449,229,380 in the prior year, a decrease of$9,394,495. (See Table 4 below). The decrease was primarily due to principal payments on outstanding debt and the amortization of bond premiums. This decrease was partially offset by an increase in the City's claims and judgments payable and its employee benefits liability. TABLE 4 OUTSTANDING DEBT,AT YEAR END (IN THOUSANDS) For the year ended June 30 Governmental Business-Type Activities Activities Total 2010 2009 2010 2009 2010 2009 Tax Allocation Bonds $ 404,990 $ 413,655 $ - $ - $ 404,990 $ 413,655 Developer Loans 20,005 20,755 - - 20,005 20,755 Capital Lease 29 47 - - 29 47 CVWD-Payment Deferral 17 - - - 17 - ClaimsandJudgments Payable 2,509 2,406 - - 2,509 2,406 Accrued Employee Benefits 7,650 7,527 - - 7,650 7,527 Unamortized Bond Premium 4,634 4,839 - - 4,634 4,839 TOTALS $ 439,834 $ 449,229 $ - $ - $ 439,834 $ 449,229 15 Standard & Poor's Corporation and Moody's Investors Service have assigned, respectively, the tax allocation bonds ratings of"AAA" and "Aaa" upon their issuance. Additional information on the City's outstanding debts can be found in the financial statements note 7 of this report. Economic Factors and Next Year's Budgets In its fourth quarterly report of 2010, the UCLA Anderson Forecast calls for"modest growth and distressingly high unemployment" for most of 2011, with an acceleration of growth late next year that will gradually lower the unemployment rate. The California forecast reads similarly, with slow growth expected until the end of next year. The Los Angeles County projections appear slightly more optimistic as 2010's high unemployment rates begin to gradually descend early next year. All three forecasts are brighter for 2012 as the economies grow more rapidly and unemployment rates continue to drop. The Fiscal Year 2010/11 General Fund Budget of$62,794,080 was adopted with a planned use of$942,400 of reserves. It represents a reduction from the prior year of 5.5%, principally as a result of a projected reduction in property taxes, sales tax, and franchise fees. The FY 2010/11 Budget required difficult decisions and collaborative efforts throughout the organization. It also included sacrifices to help the City meet its service obligations yet still retain fiscal responsibility. The budget preserves core services and continues its priority on public safety. While the FY 2010/11 Budget reflects significantly reduced revenues, the City's dedicated employees remain committed to providing the community with the best services possible utilizing the resources available during these difficult times. Questions or requests for information regarding the City of Rancho Cucamonga's Fiscal Year 2010/11 budget should be directed to the Finance Department at the address below. Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. 16 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS JUNE 30, 2010 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 528,459,394 $ 2,914,012 $ 531,373,406 Receivables: Accounts 16,559,045 1,626,637 18,185,682 Taxes 8,506,302 - 8,506,302 Notes and loans 129,894,377 13,537 129,907,914 Accrued interest 824,094 2,407 826,501 Deferred loans 443,049 - 443,049 Grants 3,715,833 - 3,715,833 Internal balances 66,662 (66,662) - Prepaid costs 64,011 - 64,011 Deposits 20,000 - 20,000 Due to external parties/outside agencies 65,519 - 65,519 Deferred charges 5,726,314 - 5,726,314 Prepaid other post employment benefits 16,492,809 - 16,492,809 Land held for resale 4,411,829 - 4,411,829 Restricted assets: Cash and investments with fiscal agent 23,939,793 - 23,939,793 Capital assets not being depreciated 340,317,454 5,451,015 345,768,469 Capital assets, net of depreciation 381,249,901 24,281,520 405,531,421 Total Assets 1,460,756,386 34,222,466 1,494,978,852 Liabilities: Accounts payable 12,472,929 842,880 13,315,809 Accrued liabilities 2,930,718 39,658 2,970,376 Accrued interest 6,979,766 - 6,979,766 Unearned revenue 542,455 - 542,455 Deposits payable 70,590 155,277 225,867 Due to other governments 443,049 - 443,049 Noncurrent liabilities: Due within one year 14,472,937 - 14,472,937 Due in more than one year 425,361,948 - 425,361,948 Total Liabilities 463,274,392 1,037,815 464,312,207 Net Assets: Invested in capital assets, net of related debt 402,124,347 29,732,535 431,856,882 Restricted for: Other post employment benefits 16,492,809 - 16,492,809 Community development projects 20,676,912 - 20,676,912 Public safety 137,285 - 137,285 Community services 13,708,950 - 13,708,950 Capital projects 284,121,587 - 284,121,587 Debt service 121,794,538 - 121,794,538 Fire protection 16,448,564 - 16,448,564 Public benefit- Municipal Utility - 1,318,141 1,318,141 Unrestricted 121,977,002 2,133,975 124,110,977 Total Net Assets $ 997,481,994 $ 33,184,651 $ 1,030,666,645 See Notes to Financial Statements 17 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2010 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 81,999,335 $ 2,955,830 $ 99,185 $ - Public safety- police 27,424,940 1,258,742 247,505 - Public safety-fire protection 26,525,691 1,420,881 6,855 77,613 Public safety-animal center 2,475,862 451,383 - - Community development 22,444,355 1,933,934 1,821,282 195,810 Community services 13,065,728 3,211,238 1,102,891 - Engineering and public works 32,984,795 3,396,052 2,997,896 59,603,960 Interest on long-term debt 28,386,763 - - - Total Governmental Activities 235,307,469 14,628,060 6,275,614 59,877,383 Business-Type Activities: Sports Complex 2,087,757 447,079 - - Municipal Utility 9,777,796 11,071,047 - - Total Business-Type Activities 11,865,553 11,518,126 - - Total Primary Government $ 247,173,022 $ 26,146,186 $ 6,275,614 $ 59,877,383 General Revenues: Taxes: Property taxes, levied for general purpose Admissions tax Transient occupancy taxes Sales taxes Franchise taxes Motor vehicle in lieu-unrestricted Use of money and property Other Transfers Total General Revenues and Transfers Change in Net Assets Net Assets at Beginning of Year Restatement of Net Assets Net Assets at End of Year See Notes to Financial Statements 18 Net(Expenses) Revenues and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (78,944,320) $ - $ (78,944,320) (25,918,693) - (25,918,693) (25,020,342) - (25,020,342) (2,024,479) - (2,024,479) (18,493,329) - (18,493,329) (8,751,599) - (8,751,599) 33,013,113 - 33,013,113 (28,386,763) - (28,386,763) (154,526,412) - (154,526,412) (1,640,678) (1,640,678) 1,293,251 1,293,251 (347,427) (347,427) (154,526,412) (347,427) (154,873,839) 152,192,987 - 152,192,987 - 11,638 11,638 1,586,652 - 1,586,652 21,586,138 - 21,586,138 5,708,397 - 5,708,397 522,294 - 522,294 21,378,598 383,583 21,762,181 5,053,904 33,088 5,086,992 66,911 (66,911) - 208,095,881 361,398 208,457,279 53,569,469 13,971 53,583,440 943,436,126 32,694,303 976,130,429 476,399 476,377 952,776 $ 997,481,994 $ 33,184,651 $ 1,030,666,645 See Notes to Financial Statements 19 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2010 Special Capital Projects Revenue Funds Funds Redevelopment General Fire District Agency Assets: Cash and investments $ 55,397,000 $ 17,019,819 $ 220,291,207 Receivables: Accounts 1,288,677 293,886 - Taxes 5,434,106 446,226 431,515 Notes and loans - - 129,894,377 Accrued interest 65,263 16,645 534,950 Deferred loans - - - Grants - - - Prepaid costs 4,350 59,186 475 Deposits 20,000 - - Due from other funds 6,118,412 230,051 Advances to other funds 57,161,058 3,953,624 Due from external parties/outside agencies 65,519 - Land held for resale - 4,411,829 Restricted assets: Cash and investments with fiscal agents - - 48,379 Total Assets $ 125,554,385 $ 17,835,762 $ 359,796,407 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,442,365 $ 206,734 $ 2,077,945 Accrued liabilities 1,362,139 862,036 60,930 Deferred revenues 49,315,824 - 8,186,461 Unearned revenues - - - Deposits payable 70,590 - Due to other governments - - - Due to other funds 318,428 2,793,054 Advances from other funds - - 56,861,058 Total Liabilities 52,190,918 1,387,198 69,979,448 Fund Balances: Reserved: Reserved for encumbrances 934,207 691,292 11,684,357 Reserved for prepaid costs 4,350 59,186 475 Reserved for land held for resale - - 4,411,829 Reserved for notes and loans - - 121,707,916 Reserved for advances to other funds 9,821,226 - 3,953,624 Reserved for deposits 20,000 - - Unreserved: Unreserved,reported in nonmajor: Special revenue funds - - - Capital projects funds - Designated for self-insurance 8,401,532 - - Designated for employee leave payouts 5,372,560 2,277,940 - Designated for PERS rate stabilization - 2,598,840 - Designated for information technology 444,000 - - Designated for dispatch system acquisition - 322,394 - Designated for radio system acquisition 361,722 - - Designated for communication - 150,000 - Designated for booking fees 1,391,059 - - Designated for City facilities'capital repair 20,121,111 - - Designated for capital facilities repair - 1,367,333 - Designated for vehicle and equipment replacement 1,907,954 - Designated for paramedic equipment replacement - 28,456 - Designated for changes in economic circumstances 13,745,456 - Designated for law enforcement 4,487,858 - Designated for contract development services 1,584,285 - Designated for Sphere of Influence 695,710 - Designated for Multi-Species Habitat Plan 200,000 - Designated for working capital 3,139,704 2,496,457 Designated for spay/neuter program 266,812 - - Designated for unrealized gain on investments 758,023 27,583 1,874,113 Designated for general plan update 39,139 - - Designated for capital improvement projects 1,550,000 4,521,129 146,184,645 Designated for mobile home park program 24,713 - - Designated for debt service - - - Total Fund Balances 73,363,467 16,448,564 289,816,959 Total Liabilities and Fund Balances $ 125,554,385 $ 17,835,762 $ 359,796,407 See Notes to Financial Statements 20 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTALFUNDS JUNE 30,2010 Debt Service Funds Other Total Redevelopment Governmental Governmental Agency Funds Funds Assets: Cash and investments $ 125,167,691 $ 98,292,106 $ 516,167,823 Receivables: Accounts 15,095 14,961,387 16,559,045 Taxes 1,673,921 520,534 8,506,302 Notes and loans - - 129,894,377 Accrued interest 104,395 89,940 811,193 Deferred loans - 443,049 443,049 Grants 3,715,833 3,715,833 Prepaid costs - 64,011 Deposits - 20,000 Due from other funds 244,994 6,593,457 Advances to other funds - 61,114,682 Due from external parties/outside agencies 65,519 Land held for resale - - 4,411,829 Restricted assets: Cash and investments with fiscal agents 20,315,248 3,576,166 23,939,793 Total Assets $ 147,276,350 $ 121,844,009 $ 772,3069913 Liabilities and Fund Balances: Liabilities: Accounts payable $ 5,012,980 $ 3,412,097 $ 12,152,121 Accrued liabilities 16 645,597 2,930,718 Deferred revenues - 17,383,642 74,885,927 Unearned revenues 542,455 542,455 Deposits payable - 70,590 Due to other governments 443,049 443,049 Due to other funds 3,481,975 6,593,457 Advances from other funds - 4,253,624 61,114,682 Total Liabilities 5,0129996 30,162,439 158,732,999 Fund Balances: Reserved: Reserved for encumbrances 6,679,267 1,979,790 21,968,913 Reserved for prepaid costs - - 64,011 Reserved for land held for resale 4,411,829 Reserved for notes and loans 121,707,916 Reserved for advances to other funds 13,774,850 Reserved for deposits - 20,000 Unreserved: Unreserved,reported in nonmajor: Special revenue funds 90,401,811 90,401,811 Capital projects funds (700,031) (700,031) Designated for self-insurance 8,401,532 Designated for employee leave payouts 7,650,500 Designated for PERS rate stabilization 2,598,840 Designated for information technology 444,000 Designated for dispatch system acquisition 322,394 Designated for radio system acquisition 361,722 Designated for communication 150,000 Designated for booking fees 1,391,059 Designated for City facilities'capital repair 20,121,111 Designated for capital facilities repair - 1,367,333 Designated for vehicle and equipment replacement 2,088,321 3,996,275 Designated for paramedic equipment replacement - 28,456 Designated for changes in economic circumstances 13,745,456 Designated for law enforcement 4,487,858 Designated for contract development services 1,584,285 Designated for Sphere of Influence 695,710 Designated for Multi-Species Habitat Plan 200,000 Designated for working capital 5,636,161 Designated for spay/neuter program - 266,812 Designated for unrealized gain on investments 1,665,664 4,325,383 Designated for general plan update - 39,139 Designated for capital improvement projects 152,255,774 Designated for mobile home park program - 24,713 Designated for debt service 131,830,102 - 131,830,102 Total Fund Balances 142,263,354 91,681,570 613,573,914 Total Liabilities and Fund Balances $ 147,276,350 $ 121,844,009 $ 772,306,913 See Notes to Financial Statements 21 THIS PAGE INTENTIONALLY LEFT BLANK 22 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2010 Fund balances of governmental funds $ 613,573,914 Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 716,647,509 Bond issuance cost is an expenditure in the governmental funds, but it is a deferred charge in the Statement of Net Assets. 5,726,314 Long-term liabilities and accrued employee benefits that have not been included in the governmental fund activity: Long-term liabilities (432,184,385) Accrued employee benefits (7,650,500) Accrued interest payable for the current portion of interest due on long-term liabilities has not been reported in the governmental funds. (6,979,766) Revenues reported as deferred revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. 74,885,927 Internal service funds are used by management to charge the costs of certain activities, such as equipment replacement, to individual funds. The assets and liabilities of the internal service funds must be added to the Statement of Net Assets. 16,970,172 Governmental funds report all contributions in relation to the Annual Required Contribution (ARC)for OPEB as expenditures, but in the Statement of Net Assets any excess or deficiencies in relation to the ARC are recorded as an asset or a liability. 16,492,809 Net assets of governmental activities $ 997,481,994 See Notes to Financial Statements 23 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED JUNE 30, 2010 Special Capital Revenue Funds Projects Funds Redevelopment General Fire District Agency Revenues: Taxes $ 47,418,524 $ 21,299,543 $ 19,376,233 Licenses and permits 3,419,014 627,172 - Intergovernmental 908,234 2,000 - Charges for services 2,175,274 85,377 - Use of money and property 1,676,173 266,871 6,044,859 Fines and forfeitures 1,396,037 20,663 - Contributions 49,188 4,525 - Developer participation - - - Miscellaneous 3,997,927 514,305 27,497 Total Revenues 61,040,371 22,820,456 25,448,589 Expenditures: Current: General government 12,201,631 - 3,923,642 Public safety- police 26,741,834 - - Public safety-fire protection - 39,938,206 - Public safety-animal center 2,475,862 - - Community development 6,075,153 - 105,813 Community services 4,196,787 - - Engineering and public works 12,278,473 - - Capital outlay 978,517 361,311 14,728,970 Debt service: Principal retirement - - 2,867,013 Interest and fiscal charges - - 15,443,065 Total Expenditures 64,948,257 40,299,517 37,068,503 Excess (Deficiency)of Revenues Over(Under) Expenditures (3,907,886) (17,479,061) (11,619,914) Other Financing Sources (Uses): Transfers in 692,504 17,231,500 7,535,810 Transfers out (15,951,339) - (531,036) Long-term debt issued - - - Proceeds from sale of capital asset 214,956 6,394 - Total Other Financing Sources (Uses) (15,043,879) 17,237,894 7,004,774 Net Change in Fund Balances (18,951,765) (241,167) (4,615,140) Fund Balances: Beginning of year 92,315,232 16,689,731 294,432,099 End of Year $ 73,363,467 $ 16,448,564 $ 289,816,959 See Notes to Financial Statements 24 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED JUNE 30, 2010 Debt Service Funds Other Total Redevelopment Governmental Governmental Agency Funds Funds Revenues: Taxes $ 77,504,933 $ 15,107,892 $ 180,707,125 Licenses and permits - - 4,046,186 Intergovernmental - 14,772,653 15,682,887 Charges for services - 4,183,749 6,444,400 Use of money and property 2,122,594 3,084,891 13,195,388 Fines and forfeitures - - 1,416,700 Contributions - 728,538 782,251 Developer participation - 3,925,926 3,925,926 Miscellaneous 10,706 11,229,281 15,779,716 Total Revenues 79,638,233 53,032,930 241,980,579 Expenditures: Current: General government 54,934,158 7,524,516 78,583,947 Public safety- police - 145,365 26,887,199 Public safety-fire protection - 77,613 40,015,819 Public safety-animal center - - 2,475,862 Community development - 13,994,715 20,175,681 Community services - 8,295,474 12,492,261 Engineering and public works - 8,578,403 20,856,876 Capital outlay 2,551,383 5,472,995 24,093,176 Debt service: Principal retirement 7,248,156 18,393 10,133,562 Interest and fiscal charges 12,966,200 2,084 28,411,349 Total Expenditures 77,699,897 44,109,558 264,125,732 Excess (Deficiency)of Revenues Over(Under) Expenditures 1,938,336 8,923,372 (22,145,153) Other Financing Sources (Uses): Transfers in - 686,883 26,146,697 Transfers out (9,458,660) (138,751) (26,079,786) Long-term debt issued 700,536 - 700,536 Proceeds from sale of capital asset - - 221,350 Total Other Financing Sources (Uses) (8,758,124) 548,132 988,797 Net Change in Fund Balances (6,819,788) 9,471,504 (21,156,356) Fund Balances: Beginning of year 149,083,142 82,210,066 634,730,270 End of Year $ 142,263,354 $ 91,681,570 $ 613,573,914 See Notes to Financial Statements 25 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2010 Net change in fund balances-total governmental funds $ (21,156,356) Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 30,074,092 The issuance of long-term liabilities (e.g. bonds, leases and loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term liabilities consumes the current financial resources of governmental funds. 9,267,867 Accrued interest for long-term liabilities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds. This is the net change in accrued interest for the current period. 69,972 Governmental funds report all contributions in relation to the Annual Required Contribution (ARC)for OPEB as expenditures, however in the Statement of Activities only the ARC is an expense. 15,803,290 Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,433,873) Certain revenues were measurable but not available and, therefore, could not be reported as revenues on the modified accrual basis, but are considered revenues for the Statement of Activities. 23,113,492 Internal service funds are used by management to charge the costs of certain activities, such as equipment replacement, to individual funds. The net revenues (expenses)of the internal service funds is reported with governmental activities. (2,169,015) Change in net assets of governmental activities $ 53,569,469 See Notes to Financial Statements 26 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) GENERALFUND FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 92,315,232 $ 92,315,232 $ 92,315,232 $ Resources(Inflows): Taxes 51,569,350 47,796,300 47,418,524 (377,776) Licenses and permits 3,174,840 3,362,090 3,419,014 56,924 Intergovernmental 522,870 1,005,860 908,234 (97,626) Charges for services 2,636,120 2,663,230 2,175,274 (487,956) Use of money and property 1,712,180 1,544,040 1,676,173 132,133 Fines and forfeitures 1,081,290 1,201,480 1,396,037 194,557 Contributions 41,900 61,870 49,188 (12,682) Miscellaneous 4,243,780 4,049,940 3,997,927 (52,013) Transfers in 500,000 692,400 692,504 104 Proceeds from sale of capital asset - 195,870 214,956 19,086 Amounts Available for Appropriation 157,797,562 154,888,312 154,263,063 (625,249) Charges to Appropriation(Outflow): General government General overhead 3,454,440 3,040,696 3,014,307 26,389 Personnel overhead 635,600 890,730 491,819 398,911 City council 143,590 140,920 134,166 6,754 City manager 1,097,230 1,130,330 1,112,167 18,163 City clerk 2,650 2,660 2,655 5 Administrative services 282,930 244,300 240,497 3,803 Business licenses 332,390 332,530 327,627 4,903 City facilities 1,886,710 2,108,390 1,858,096 250,294 Finance 961,710 965,770 962,897 2,873 Geographic information systems 350,220 348,590 342,818 5,772 Management information services 2,726,560 2,621,230 2,553,855 67,375 Personnel 466,600 371,480 344,331 27,149 Purchasing 519,430 519,790 494,986 24,804 Risk management 203,250 179,080 172,221 6,859 Treasury management 6,940 6,060 5,070 990 Records management 460,640 459,820 454,598 5,222 Public safety-police Sheriff contract services 28,174,670 27,173,790 26,741,834 431,956 Public safety-animal center Animal care and services 2,537,530 2,528,070 2,526,057 2,013 Community development Planning 2,338,110 2,615,250 2,199,086 416,164 Planning commission 12,520 9,470 9,147 323 Code enforcement 860,660 847,180 845,996 1,184 Administration 415,170 1,065,640 999,700 65,940 Building and safety 2,448,140 2,317,010 2,306,270 10,740 Community Services Administration 4,513,350 4,452,950 4,192,770 260,180 Park and recreation commission 4,220 4,230 4,017 213 Engineering and Public Works Engineering administration 769,540 749,760 730,818 18,942 Development management 1,190,100 1,095,926 1,065,815 30,111 Engineering-NPDES 516,990 511,064 398,706 112,358 Project management 729,060 717,160 709,821 7,339 Traffic management 279,040 284,910 279,724 5,186 Street and park maintenance 4,472,060 4,361,850 4,090,090 271,760 Vehicle and equipment maintenance 1,382,070 1,222,030 1,100,907 121,123 Facilities maintenance 4,112,910 4,074,810 3,944,375 130,435 Capital outlay 3,911,340 1,248,604 1,225,221 23,383 Transfers out 935,300 15,960,180 15,951,339 8,841 Total Charges to Appropriations 73,133,670 84,602,260 81,833,803 2,768,457 Budgetary Fund Balance,June 30(Budgetary Basis) $ 84,663,892 $ 70,286,052 72,429,260 $ 2,143,208 Encumbrances 934,207 Budgetary Fund Balance,June 30(GAAP Basis) $ 73,363,467 See Notes to Financial Statements 27 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) FIRE DISTRICT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 16,689,731 $ 16,689,731 $ 16,689,731 $ - Resources(Inflows): Taxes 21,099,410 21,731,780 21,299,543 (432,237) Licenses and permits 317,430 333,970 627,172 293,202 Intergovernmental - 2,000 2,000 - Charges for services 73,580 77,550 85,377 7,827 Use of money and property 429,430 344,130 266,871 (77,259) Fines and forfeitures 10,250 6,270 20,663 14,393 Contributions 23,440 4,520 4,525 5 Miscellaneous 72,550 501,010 514,305 13,295 Transfers in 2,084,500 17,194,760 17,231,500 36,740 Proceeds from sale of capital asset - 10,000 6,394 (3,606) Amounts Available for Appropriation 40,800,321 56,895,721 56,748,081 (147,640) Charges to Appropriation (Outflow): Public safety-fire protection 25,394,700 41,436,900 40,048,623 1,388,277 Capital outlay 3,714,000 3,927,400 942,186 2,985,214 Total Charges to Appropriations 29,108,700 45,364,300 40,990,809 4,373,491 Budgetary Fund Balance,June 30(Budgetary Basis) $ 11,691,621 $ 11,531,421 15,757,272 $ 4,225,851 Encumbrances 691,292 Budgetary Fund Balance,June 30(GAAP Basis) $ 16,448,564 See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30,2010 Business-Type Activities-Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Totals Service Funds Assets: Current: Cash and investments $ 29,110 $ 2,884,902 $ 2,914,012 $ 12,291,571 Receivables: Accounts 30,171 1,596,466 1,626,637 - Notes and loans - 13,537 13,537 - Accrued interest - 2,407 2,407 12,901 Total Current Assets 59,281 4,497,312 4,556,593 12,304,472 Noncurrent: Capital assets-net of accumulated depreciation 15,831,914 13,900,621 29,732,535 4,919,846 Total Noncurrent Assets 15,831,914 13,900,621 29,732,535 4,919,846 Total Assets $ 15,891,195 $ 18,397,933 $34,289,128 $ 17,224,318 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 69,625 $ 773,255 $ 842,880 $ 320,808 Accrued liabilities 33,154 6,504 39,658 - Deposits payable - 155,277 155,277 - Total Current Liabilities 102,779 935,036 1,037,815 320,808 Total Liabilities 102,779 935,036 1,037,815 320,808 Net Assets: Invested in capital assets 15,831,914 13,900,621 29,732,535 4,919,846 Restricted for public benefit- Municipal Utility - 1,318,141 1,318,141 - Unrestricted (43,498) 2,244,135 2,200,637 11,983,664 Total Net Assets 15,788,416 17,462,897 33,251,313 16,903,510 Total Liabilities and Net Assets $ 15,891,195 $ 18,397,933 $34,289,128 $ 17,224,318 Reconciliation of Net Assets to the Statement of Net Assets Net Assets per Statement of Net Assets- Proprietary Funds $33,251,313 Prior years'accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (66,662) Net Assets per Statement of Net Assets $33,184,651 See Notes to Financial Statements 29 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2010 Business-Type Activities -Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Totals Service Funds Operating Revenues: Sales and service charges $ 447,079 $ 11,071,047 $ 11,518,126 $ 4,270 Rents 320,845 - 320,845 - Miscellaneous 32,093 995 33,088 1,500 Total Operating Revenues 800,017 11,072,042 11,872,059 5,770 Operating Expenses: Salaries and benefits 713,642 187,197 900,839 - Maintenance and operations 577,475 8,402,742 8,980,217 796,492 Contractual services 169,563 496,542 666,105 - Depreciation expense 627,077 685,898 1,312,975 1,687,300 Total Operating Expenses 2,087,757 9,772,379 11,860,136 2,483,792 Operating Income(Loss) (1,287,740) 1,299,663 11,923 (2,478,022) Nonoperating Revenues(Expenses): Admissions tax 11,638 - 11,638 - Interest revenue 399 62,339 62,738 319,570 Contributions - - - 36,766 Gain (loss)on disposal of fixed assets (564) (4,853) (5,417) (47,329) Total Nonoperating Revenues(Expenses) 11,473 57,486 68,959 309,007 Income(Loss)Before Transfers (1,276,267) 1,357,149 80,882 (2,169,015) Transfers in 625,489 - 625,489 - Transfers out - (692,400) (692,400) - Changes in Net Assets $ (650,778) $ 664,749 $ 13,971 $ (2,169,015) Net Assets: Beginning of year, as originally reported $ 16,439,194 $ 16,321,771 $ 32,760,965 $ 18,596,126 Restatements - 476,377 476,377 476,399 Beginning of year, as restated 16,439,194 16,798,148 33,237,342 19,072,525 Changes in Net Assets (650,778) 664,749 13,971 (2,169,015) End of Fiscal Year $ 15,788,416 $ 17,462,897 $ 33,251,313 $ 16,903,510 See Notes to Financial Statements 30 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2010 Business-Type Activities-Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Totals Service Funds Cash Flows from Operating Activities: Cash received from customers and users $ 859,499 $ 10,959,707 $ 11,819,206 $ 5,770 Cash paid to supplies for goods and services (744,807) (8,952,645) (9,697,452) (769,555) Cash paid to employees for services (723,592) (191,760) (915,352)Net Cash Provided (Used) by Operating Activities (608,900) 1,815,302 1,206,402 (763,785) Cash Flows from Non-Capital Financing Activities: Cash transfers out - (692,400) (692,400) - Cash transfers in 625,489 - 625,489 - Admissions tax received 12,123 - 12,123 - Net Cash Provided (Used) by Non-Capital Financing Activities 637,612 (692,400) (54,788) - Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets - (19,446) (19,446) (1,675,193) Proceeds from the sale of capital assets - - - (47,329) Net Cash Provided (Used) by Capital and Related Financing Activities - (19,446) (19,446) (1,722,522) Cash Flows from Investing Activities: Interest received 398 61,836 62,234 322,164 Net Cash Provided (Used) by Investing Activities 398 61,836 62,234 322,164 Net Increase(Decrease) in Cash and Cash Equivalents 29,110 1,165,292 1,194,402 (2,164,143) Cash and Cash Equivalents at Beginning of Year - 1,719,610 1,719,610 14,455,714 Cash and Cash Equivalents at End of Year $ 29,110 $ 2,884,902 $ 2,914,012 $ 12,291,571 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income(loss) $ (1,287,740) $ 1,299,663 $ 11,923 $ (2,478,022) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 627,077 685,898 1,312,975 1,687,300 (Increase)decrease in accounts receivable 59,482 (159,799) (100,317) - (Increase)decrease in deposits receivable - 1,477 1,477 - (Increase)decrease in notes and loans receivable - (13,537) (13,537) - (Increase)decrease in prepaid costs - 525 525 - Increase(decrease) in accounts payable 2,231 (55,363) (53,132) 26,937 Increase(decrease) in accrued liabilities (9,950) (4,563) (14,513) - Increase(decrease) in deposits payable - 61,001 61,001 - Total Adjustments 678,840 515,639 1,194,479 1,714,237 Net Cash Provided (Used) by Operating Activities $ (608,900) $ 1,815,302 $ 1,206,402 $ (763,785) Non-Cash Investing, Capital, and Financing Activities: Contributions from governmental funds $ - $ - $ - $ 36,766 See Notes to Financial Statements 31 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2010 Agency Funds Assets: Cash and investments $ 24,854,233 Receivables: Accounts 46,186 Taxes 170,524 Interest 14,441 Restricted assets: Cash and investments with fiscal agents 12,722,719 Total Assets $ 37,808,103 Liabilities: Accounts payable $ 71,721 Accrued liabilities 37,665 Deposits payable 7,619,360 Due to external parties/outside agencies 25,173 Payable to trustee 30,054,184 Total Liabilities $ 37,808,103 See Notes to Financial Statements 32 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2010 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five-member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Rancho Cucamonga (the City) and its component units, entities for which the City is considered financially accountable. The inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component units: 1. The members of the City Council also act as the governing body of the Rancho Cucamonga Redevelopment Agency (the Agency), the Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation), the Rancho Cucamonga Fire Protection District (the Fire District), the Rancho Cucamonga Library (the Library) and the Rancho Cucamonga Public Financing Authority (the Financing Authority). 2. The Agency, the Improvement Corporation, the Fire District, the Library and the Public Financing Authority are managed by employees of the City. A portion of the City's personnel costs is allocated to these component units each year. 3. The City, the Agency, the Improvement Corporation, the District, the Library and the Financing Authority are financially interdependent. They provide financial benefit/burden to the City. Blended Component Units The Rancho Cucamonga Redevelopment Agency was established on May 20, 1981, pursuant to the State of California Health and Safety Code, Section 33000. Its purpose is to prepare and carry out plans for the improvement, rehabilitation and development of blighted areas within the territorial limits of the City of Rancho Cucamonga. Separate financial statements may be obtained from the Agency. The Rancho Cucamonga Public Improvement Corporation was incorporated on November 14, 1988, under the Non-Profit Public Benefit Corporation Law of the State of California. The Corporation was established for charitable purposes including rendering financial assistance to the City by financing, acquiring, constructing, improving and leasing public improvements for the benefit of residents of the City and the surrounding area. Separate financial statements are not available for the Corporation. 33 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The Rancho Cucamonga Fire Protection District (formerly, Foothill Fire Protection District) was a special district formed by the County of San Bernardino for the purpose of fire suppression within its boundaries. Effective July 1, 1989, operations of this district were taken over by the City of Rancho Cucamonga. The district still operates as a separate special district; however, now it is under the control of the City of Rancho Cucamonga instead of the County of San Bernardino. Separate financial statements are available for the District. The Rancho Cucamonga Library was part of the San Bernardino County Library System in which the City of Rancho Cucamonga participated. Effective July 1, 1994, and pursuant to California Code Section 19104, the City withdrew from the County Library System. As of this date, the library operates as a separate entity under the control of the City. Separate financial statements are not available for the Library. The Rancho Cucamonga Public Financing Authority was established on April 21, 1999, pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the California Government Code. Its purpose is to facilitate the financing and the refinancing of construction, expansion, upgrading and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. Separate financial statements are not available for the Public Financing Authority. b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. 34 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period, with the exception of certain intergovernmental revenues which is 310 days. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City's fiduciary fund financial statements only report agency funds. Agency funds are used to account for situations where the government's role is purely custodial. All assets reported in an agency fund are offset by a liability to the party on whose behalf they are held. Agency funds have no measurement focus. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when the government receives cash. The City reports the following major governmental funds: • The General Fund is the general operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities, which are not required to be accounted for or paid by another fund. • The Fire District Fund accounts for the revenue and disbursement of funds received by the Rancho Cucamonga Fire Protection District in the course of that agency's fire protection services. • The Rancho Cucamonga Redevelopment Agency Capital Project Fund accounts for the acquisition and construction of major facilities within the Rancho Cucamonga Redevelopment Project Area. • The Rancho Cucamonga Redevelopment Agency Debt Service Fund accounts for the accumulation of resources for the payment of interest and principal on long-term debt of the Agency. The City reports the following major proprietary funds: • The Sports Complex Fund accounts for personnel and operating costs directly associated with the operation of the baseball facility, which is the home of the Rancho Cucamonga Quakes. 35 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain major commercial / industrial developments within the City. Additionally, the City reports the following fund types: • Internal service funds account for the financial transactions related to repair, replacement and maintenance of City-owned vehicles and equipment and the City's general information systems and telecommunications hardware and software. • Fiduciary funds account for assets held by the City in a purely custodial capacity. The fiduciary fund type the City maintains is an agency fund. The City's agency funds are used to account for deposits held by the City in its fiduciary capacity and to account for assessments received for various purposes which are restricted for payment of principal, interest and penalties on special obligation bonds. Private-sector standards of accounting and financial reporting issued prior to December 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the Internal Service Funds are charges to customers for sales and services. Operating expenses for Enterprises Funds and Internal Service Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed. 36 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) d. Assets, Liabilities and Net Assets or Equity Cash and Investments All cash and investments, except those that are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents and are shown as restricted assets for financial statement presentation purposes. Investments for the City, as well as for its component units, are reported at fair value. The City's policy is generally to hold investments until maturity. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. All trade and property tax receivables are shown net of allowance for uncollectibles. Prepaid Costs Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. The fund balances in the governmental fund types have been reserved for amounts equal to the prepaid items in the fund-level statements, since these amounts are not available for appropriation. Land Held for Resale Land purchased for resale is capitalized as inventory at acquisition costs as the City expects to sell this land with no decline in value. The fund balances in the governmental fund types have been reserved for amounts equal to the land held for resale in the fund-level statements, since these amounts are not available for appropriation. Restricted Assets Certain proceeds of debt issues, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. 37 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Capital Assets Capital assets, which include property, plant, equipment, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost when purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, equipment, and infrastructure of the primary government, as well as its component units, are depreciated using the straight-line method over the following estimated useful lives: Assets Years Building improvements 10-50 Improvements other than buildings 10-40 Computer equipment and software 3-15 Equipment and vehicles 3-20 Furniture and fixtures 3-20 Infrastructure 10-75 Accrued Employee Benefits The City's policy permits employees to accumulate earned but unused vacation and sick pay benefits. The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government-wide financial statements. The City utilizes the General Fund and the Fire District Special Revenue Fund in the governmental fund financial statements to account for the short-term portion of its liability. The short-term portion is the unused reimbursable leave still outstanding following an employee's resignation or retirement. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Fire District employees cannot accrue more than one and one-half times their regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. For City employees, those who terminate their employment after five years of continuous service and have at least 50% of five years sick leave accrued on the books upon termination may be paid for 120 hours of the accrued leave. 38 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) For Fire District employees, sick leave may be accumulated indefinitely or an employee with ten or more years of service is eligible to convert unused sick leave to vacation in accordance with the following and with any remainder of hours to still remain unused sick time: Accumulated Sick Employee Leave Balance Vacation Type Prior Calendar Year Conversion Rate shift 108 - 144 hours one-half shift 72 - 108 hours one-fourth 40-hour 90 - 120 hours one-half 40-hour 60 -90 hours one-fourth Upon service retirement of a public safety employee, the option exists to sell back up to one-half of total accumulated sick time or have the time credited toward service in accordance with the Public Retirement Law. All unused sick leave is forfeited upon termination, other than for normal retirement. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net assets. 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 bond premium or discount. Bond issuance cost are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent the City Council's plans for the future usage of City resources. Property Tax Property tax revenue is recognized on the modified accrual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be 39 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Tax liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are levied. Taxes are levied on both real and personal property as it exists on that date. The tax levy covers the fiscal period July 1 to June 30. All secured personal property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent, if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first of March each year and are delinquent, if unpaid, on August 31. Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area. • Public Safety—Police includes those activities which involve police protection. • Public Safety - Fire Protection includes activities of the fire protection district which involved in the protection of people and property from fire as well as emergency preparedness. • Public Safety—Animal Center includes those activities which involve animal care and services. • Community Development includes those activities which involve planning and redevelopment, as well as building and safety. • Community Services includes activities which provide recreation, cultural and educational services. • Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets, parks, flood control and other public facilities. e. Reconciliation of Government-Wide and Fund Financial Statements Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net assets: The governmental fund balance sheet includes reconciliation between fund balance - governmental funds and net assets of governmental activities as reported in the government-wide statement of net assets. One element of that reconciliation explains that "long-term debt and accrued employee benefits have not been included in the governmental fund activity." The detail of the ($432,184,385) long-term debt difference is as follows: 40 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Long-term debt: Tax allocation bonds payable $ (404,990,000) Unamortized bond premium (4,634,306) Loans payable (20,005,200) Leases payable (29,287) Claims and judgments payable (2,509,075) Payment deferral (16,517) Net adjustment to reduce fund balance of total governmental funds to arrive at net assets of governmental activities $ (432,184,385) Explanation of certain differences between the governmental fund statement of revenues, expenditures and changes in fund balances and the government-wide statement of activities: The governmental fund statement of revenues, expenditures and changes in fund balances includes reconciliation between net change in fund balances of total governmental funds and change in net assets of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense." The details of this $30,074,092 difference are as follows: Capital outlay $ 47,012,506 Depreciation expense (15,083,968) Loss from disposition of capital assets (1,854,446) Net adjustment to increase net changes in fund balances of total governmental funds to arrive at changes in net assets of governmental activities $ 30,074,092 Another element of that reconciliation states that "the issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds." The details of this $9,267,867 difference are as follows: 41 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Issuance of long-term debt: Loans payable $ (700,536) Payment deferral (16,517) Principal repayments: Tax allocation bonds 8,665,000 Loans payable 1,450,169 Lease payable 18,393 Amortization of bond premium and cost of issuance (250,020) Amortization of cost of issuance 204,634 Net changes in claims and judgments liability (103,256) Net adjustment to increase net changes in fund balance of total governmental funds to arrive at changes in net assets of governmental activities. $ 9,267,867 II. STEWARDSHIP Note 2: Stewardship, Compliance and Accountability a. General Budget Policies The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. The City Council approves each year's budget submitted by the City Manager prior to the beginning of the new fiscal year. The Council conducts public hearings prior to its adoption, and when required during the period, and also approves supplemental appropriations. There were several supplemental appropriations required during the year. A detailed mid-year review was conducted at which time a revised budget was adopted. There were no significant non-budgeted financial activities during the year. The City Council may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between line items within an appropriation as set forth in the budget and may transfer appropriations between activities within any fund. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the General Fund and at the function level for Special Revenue, Capital Project Funds and Debt Service Funds. Basis of Budgeting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP. For the fiscal year 2009-2010, the following funds had no adopted annual budgets: 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 2: Stewardship, Compliance and Accountability(Continued) • Transportation Enhancement Act • SB 140 • Teen Connection Program Grant • COPS in School Grant • Underground Utilities • Henderson/Wardman Drainage • Federal Grant Fund — Drier • OTS 2005 Seatbelt Grant • Homeland Security Grant 2005 • Assessment District 84-2 • Assessment District 86-2 • Public Library Bond Act-2000 These funds had no adopted budget due to the timing of the usage of these grant and capital project funds. Money will be budgeted as needed based on specific projects to be completed with these funds. b. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. Encumbrances outstanding at year-end are reported as a reservation of fund balance. They represent the estimated amount of the expenditure ultimately to result if unperformed contracts in progress at year-end are completed. They do not constitute expenditures or estimated liabilities. Encumbrances outstanding at June 30, 2010, amounted to $21,968,913. c. Deficit Fund Balances or Net Assets The following funds have a deficit at June 30, 2010: Special Revenue Funds: Pedestrian Grant $ (1,417,021) Community Development Block Grant (483,762) California Literacy Campaign (8,860) Used Oil Recycling (9,125) Energy Efficient&Conservation Block Grant (63,572) Safe Routes to School Program (12) Department of Homeland Security Grant (19,192) Homeland Security Grant 2005 (25,410) Capital Projects Funds: Assessment District 86-2 (41,128) CFD 2001-01 (2,077,534) CFD 2003-01 Project Fund (1,244,316) Public Library Bond Act-2000 (1,498,042) The City expects to eliminate these deficits with anticipated future revenues from grants, deferred payments and reimbursements. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2010, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 552,398,237 Business-type activities 2,914,012 Fiduciary funds 37,576,952 Total Cash and Investments $ 592,889,201 The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated quarterly to the various funds based on average daily cash balances. Interest Income from cash and investments with fiscal agents is credited directly to the related fund. Deposits At June 30, 2010, the carrying amount of the City's deposits was $8,417,171 and the bank balance was $8,618,627. The $201,456 difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Under provision of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized: 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 3: Cash and Investments (Continued) • U.S. Government Agency Securities • Certificates of Deposit (or Time Deposits) • Negotiable Certificates of Deposit • Banker's Acceptances • Commercial Paper • Local Agency Investment Fund (State Pool) • Deposit of Funds • Repurchase and Investment Agreements Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. Credit Risk The City's investment policy limits investments in medium-term notes (MTN's) in short- term rating of at least 'A' or 'A1/P1' and a long-term rating of 'A' is required. As of June 30, 2010, the City invested in Federal Farm Credit Bank, Federal Home Loan Bank, Federal Home Loan Mortgage Corp. and Federal National Mortgage Association which were all rated "AAA" by Moody's and by S&P at June 30, 2010. All securities were investment grade and were legal under state and City law. Investments in U.S. government securities are not considered to have credit risk and, therefore, their credit quality is not disclosed. As of June 30, 2010, the City's investments in external investment pools and money market mutual funds are unrated. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 3: Cash and Investments (Continued) Custodial Credit Risk The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty to a transaction, a government will not be able to recover the value of investment or collateral securities that are in the possession of an outside party. As of June 30, 2010, none of the City's deposits or investments were exposed to custodial credit risk. Concentration of Credit Risk The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. As of June 30, 2010, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer then it is exposed to credit risk. The following investments are considered exposed to credit risk. Federal Farm Credit Bank 17% Federal Home Loan Bank 14% Federal Home Loan Mortgage Corporation 18% Federal National Mortgage Association 16% Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this. Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy establishes a maximum maturity of 180 days for Banker's Acceptances, 270 days for Commercial Papers, one year for Repurchase Agreements and five years for all other individual investments. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 3: Cash and Investments (Continued) As of June 30, 2010, the City had the following investments and original maturities: Investment Maturities (in Years) 180 days 180 days to 270 days to 3-5 Fair or less 270 days 3 years years Value Investments Local Agency Investment Fund $ 109,466,891 $ - $ - $ - $ 109,466,891 US Treasury - - 13,127,661 - 13,127,661 Federal Governmental Agencies Federal Farm Credit Bank 7,203,375 7,288,750 39,933,751 42,016,875 96,442,751 Federal Home Loan Bank - - 18,388,750 19,713,906 78,927,812 Federal Home Loan Mortgage Corp. 6,567,834 - 51,833,542 49,392,475 107,793,851 Federal National Mortgage Assoc. - - 63,588,406 31,370,781 94,959,187 Certificates of Deposits - 6,655,923 - - 6,655,923 Municipal Bonds - - - 5,107,050 5,107,050 Government Managed Rate Accounts 3,430,629 - - - 3,430,629 Commercial Paper 14,996,615 - 1,506,485 - 16,503,100 Money Market Mutual Funds 15,394,663 - - - 15,394,663 Investments with Fiscal Agents: Money Market Mutual Funds 36,662,512 - - - 36,662,512 $ 193,722,519 $ 13,944,673 $ 188,378,595 $147,601,087 $584,472,030 Note 4: Notes and Loans Receivables Notes and loans receivables consist of the following at June 30, 2010: 1. On October 16, 1991, the Rancho Cucamonga Redevelopment Agency and Forrest L. and Lilionne M. Perry entered into a loan agreement, whereby the Agency loaned Perry $408,000 for the purpose of upgrading and refurbishing a certain business. The loan is secured by an unsubordinated Leasehold Deed of Trust. As of June 30, 2010, the loan receivable amounted to $287,866. 2. In January 1997, the Agency entered into an agreement to loan Villa Pacifica Associates, a California Limited Partnership, up to $3,080,000 to develop senior rental housing for low and moderate income households. The term of the loan is 40 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payments of principal and interest on the loan are due and payable only to the extent that 50% of the net annual cash flow from the development is available. As of June 30, 2010, the outstanding balance remaining of $4,169,176, including accrued interest of$1,175,994. Accrued interest is offset by deferred revenue. 3. On September 1, 2005, the Agency entered into a loan agreement with Northtown Housing Development Corporation for the purchase of undeveloped real property and the development of an apartment complex (San Sevaine)which will increase the supply of affordable housing to low and moderate income households for a period of ninety-nine (99) years. This loan is a line of credit not-to-exceed $40,700,000 with simple interest accruing at 1% per annum from the date of disbursement for a term of 55 years (2060), as modified on May 6, 2009 with Amendment#2. 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 4: Notes and Loans Receivables (Continued) As of June 30, 2010, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $639,807 for a total of $41,097,465. Accrued interest is offset by deferred revenue. 4. On July 21, 2003, the Rancho Cucamonga Redevelopment Agency entered into a Disposition and Developer Agreement with Victoria Gardens, LLC. The Agency conveyed 147 acres generally located north of Foothill Boulevard, west of the 1-15 Freeway and east of Day Creek Road in the City of Rancho Cucamonga in order for the Developer to construct an open air mixed use complex. The Agency conveyed the site to the Developer upon the execution of a promissory note to pay a cumulative sum of $13,000,000 to the Agency over a term of thirty (30) years. The note stipulates the following payment structure: (1) the Developer shall make annual payments to the Agency equal to the amount required to amortize the excess return at the Agency's cost of funds; (2) the Developer shall pay the Agency fifteen percent (15%) of the difference between the net sale proceeds and the higher of the project cost, or the initial gross proceeds of any loan; and (3) the Developer shall pay the Agency fifteen percent (15%) of any positive net refinance proceeds. As of June 30, 2010, no payments have been required, with the outstanding balance remaining at$13,000,000. 5. On April 19, 2006, the Agency entered into a loan agreement with LINC-Pepperwood Housing Investors, LP to provide financial assistance from the Low and Moderate Housing Set-aside Fund to purchase and rehabilitate the Pepperwood Apartment Homes, which will increase the supply of affordable housing to low and moderate income households, for not less than ninety-nine (99) years. The loan is in the form of a line of credit not-to-exceed $21,638,113, which includes the rollover of the BLT Partnership No. 1 loan of $2,350,000 and an amendment and increase during fiscal year 2006-2007 of $1,288,113. The outstanding principal balance of the loan will accrue simple interest at 2% per annum from the date of disbursement for a term of 56 years (2062). In addition, to the extent there are Residual Receipts, the Developer shall pay to the Agency 50% of the Residual Receipts from the preceding year. The advances paid against this line of credit as of June 30, 2010, amounted to $21,638,113 and accrued interest amounts to $1,627,711, for a total balance of $23,265,824. Accrued interest is offset by deferred revenue. 6. On September 1, 2005, the Agency entered into a loan agreement with HB Housing Partners, L.P. to provide financial assistance from the Low and Moderate Housing Set-aside Fund to purchase and rehabilitate the Woodhaven Manor Apartments, which will increase the supply of affordable housing to low and moderate income households for not less than ninety-nine (99) years. The loan is in the form of a line of credit not-to-exceed $9,000,000. Simple interest accrues on the advances as follows: 1) 3% per annum from the date of disbursement through and including the date immediately prior to September 21, 2022; and 2) 2% per annum from September 21, 2002 through September 21, 2060. In addition, to the extent there are Residual Receipts, the Developer shall pay to the Agency either 33% or 50% of the Residual Receipts from the preceding year. As of June 30, 2010, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $1,145,214 for a total of $10,145,214. Accrued interest is offset by deferred revenue. 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 4: Notes and Loans Receivables (Continued) 7. On March 9, 2006, the Agency entered into a loan agreement with The Southern California Housing Development Corporation for the acquisition, construction and operation of affordable housing apartments which will increase the supply of very- low, low and moderate income households. This loan is a line of credit not-to-exceed $6,500,000 with simple interest accruing at 1.5% per annum until June 27, 2035, and 2% per annum thereafter and payable without demand or notice on June 27, 2060. As of June 30, 2010, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $183,924 for a total of $6,683,834. Accrued interest is offset by deferred revenue. 8. On December 1, 2001, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $4,000,000 with Malvern Housing Partners, LP and Southern California Housing Development Corporation for the acquisition, construction and operation of a 49-unit senior multifamily apartment project, known as Heritage Pointe Senior Apartments. A portion of the necessary funding will be provided from proceeds of a $4,000,000 bond issue by Southern California Housing Development Corporation. Funding provided by the Agency is in the form of semi-annual principal payments toward these bonds from the Agency's low and moderate income housing fund. As payments are made by the Agency, beginning April 1, 2003, these amounts shall be added to and become the principal balance of this Residual Receipts Note, and will accrue simple interest at 1% per annum from the date of payment through December 2056. Annual payments of principal and accrued interest shall not commence until the operation of the project has generated residual receipts. As of June 30, 2010, the advances paid against this line of credit amounted to $565,788 and accrued interest amounts to $22,420, for a total of$588,208. Accrued interest is offset by deferred revenue. 9. On September 1, 2008, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $27,565,000 with Rancho Workforce Housing, L.P. for the acquisition, construction and development of a 166- unit rental housing development, including 131 residential units for low and moderate income residents. This loan bears simple interest of 2.386% compounded annually from the date of disbursement, with a term commencing on the date of this agreement and continuing for fifty-five (55) years from the date of the recordation of the Certificate of Completion. Commencing after Borrower's fiscal year first ending after the completion of construction of the development, Borrower shall make repayments to the Agency equal to 50% of the Residual Receipts. As of June 30, 2010, the advances paid against this line of credit amounted to $16,806,399, and accrued interest amounts to $723,260, for a total of$17,529,659. 10. On September 26, 1994, the Agency entered into a Disposition and Development Agreement (DDA) and loan agreement (as modified on March 22, 1996) for $5,929,181 with North Town Housing Partners for the acquisition of the 88-unit multifamily rental Del Norte housing project for low and moderate income households. The term of the loan is 40 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. As of June 30, 2010, the outstanding balance amounts to $8,597,313, including accrued interest of $2,668,132. Accrued interest is offset by deferred revenue. 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 4: Notes and Loans Receivables (Continued) 11. On June 6, 2001, the Agency entered into a loan agreement (as updated on December 1, 2002) for $4,700,000 with Northtown Housing Development Corp. for the development of the Olen Jones Senior Apartments. The term of the loan is 55 years, with zero interest accruing for the first 15 years, then accruing simple interest at 3% per annum for the remainder of the term. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. As of June 30, 2010, the outstanding balance amounts to $4,529,818. Total loans receivables at June 30, 2010, including accrued interest of $8,186,462, amounted to $129,894,377. Note 5: Capital Assets Capital asset activity for the year ended June 30, 2010, was as follows: Adjusted Beginning Beginning Ending Balance Adjustments* Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets,not being depreciated: Land $ 83,196,344 $ $ 83,196,344 $ 206,979 $ $ $ 83,403,323 Right of way 223,219,486 223,219,486 - 223,219,486 Construction-in-progress 20,972,637 20,972,637 19,301,025 478,526 (6,100,491) 33,694,645 Total Capital Assets, Not Being Depreciated 327,388,467 327,388,467 19,508,004 478,526 (6,100,491) 340,317,454 Capital assets,being depreciated: Building Improvements 140,765,724 140,765,724 872,723 545,960 1,482,154 142,574,641 Improvement other than buildings 9,438,016 9,438,016 568,792 122,256 2,547,784 12,432,336 Equipment and vehicles 37,438,396 37,438,396 2,548,299 6,263,717 - 33,722,978 Furniture and fixtures 3,197,162 3,197,162 330,360 540,051 - 2,987,471 Infrastructure 386,573,555 386,573,555 24,579,725 1,087,664 2,070,553 412,136,169 Intangible - 829,399 829,399 316,559 - - 1,145,958 Total Capital Assets, Being Depreciated 577,412,853 829,399 578,242,252 29,216,458 8,559,648 6,100,491 604,999,553 Less accumulated depreciation: Building improvements 22,574,810 - 22,574,810 3,289,999 331,624 - 25,533,185 Improvement other than buildings 6,228,580 6,228,580 665,140 120,678 6,773,042 Equipment and vehicles 26,049,589 26,049,589 3,407,196 6,001,916 23,454,869 Furniture and fixtures 1,514,465 1,514,465 496,974 396,284 1,615,155 Infrastructure 157,441,668 - 157,441,668 8,730,401 333,226 165,838,843 Intangible - 353,000 353,000 181,558 - 534,558 Total Accumulated Depreciation 213,809,112 353,000 214,162,112 16,771,268 7,183,728 - 223,749,652 Total Capital Assets, Being Depreciated,Net 363,603,741 476,399 364,080,140 12,445,190 1,375,920 6,100,491 381,249,901 Governmental Activities Capital Assets,Net $ 690,992,208 $ 476,399 $ 691,468,607 $ 31,953,194 $ 1,854,446 $ - $ 721,567,355 *Adjustments were made to implement the provisions GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets. 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Government Activities: General government $ 1,666,878 Public safety-police 507,686 Public safety-fire protection 670,023 Engineering and public works 9,687,578 Community development 1,983,787 Community services 568,016 Vehicle Replacement Fund 1,259,241 Computer Equip./Technology Replacement Fund 428,059 Total Governmental Activities $ 16,771,268 Adjusted Beginning Beginning Ending Balance Adjustments* Balance Increases Decreases Balance Business-Type Activities: Capital assets,not being depreciated: Land $ 5,451,015 $ $ 5,451,015 $ $ $ 5,451,015 Total Capital Assets, Not Being Depreciated 5,451,015 5,451,015 5,451,015 Capital assets,being depreciated: Building improvements 17,203,473 17,203,473 - 17,203,473 Improvement other than buildings 3,797,414 3,797,414 3,797,414 Equipment and vehicles 497,797 497,797 78,684 419,113 Furniture and fixtures 98,559 98,559 16,185 82,374 Infrastructure 16,722,614 16,722,614 19,449 - 16,742,063 Intangible - 25,856 25,856 - - 25,856 Total Capital Assets, Being Depreciated 38,319,857 25,856 38,345,713 19,449 94,869 38,270,293 Less accumulated depreciation: Building improvements 6,893,768 - 6,893,768 430,074 - 7,323,842 Improvement other than buildings 3,117,045 - 3,117,045 189,870 - 3,306,915 Equipment and vehicles 450,542 (2,640) 447,902 10,998 78,122 380,778 Furniture and fixtures 45,819 (7,888) 37,931 10,154 11,330 36,755 Infrastructure 2,708,597 (449,854) 2,258,743 669,293 - 2,928,036 Intangible - 9,861 9,861 2,586 - 12,447 Total Accumulated Depreciation 13,215,771 (450,521) 12,765,250 1,312,975 89,452 13,988,773 Total Capital Assets, Being Depreciated, Net 25,104,086 476,377 25,580,463 (1,293,526) 5,417 24,281,520 Business-Type Activities Capital Assets, Net $ 30,555,101 $ 476,377 $ 31,031,478 $ (1,293,526) $ 5,417 $ 29,732,535 *Adjustments were made to implement the provisions GASB Statement No. 51, Accounting and Financial Reporting for Intangible Assets. 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Business-Type Activities: Sports Complex $ 627,077 Municipal Utility 685,898 Total Business-Type Activites $ 1,312,975 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2010, was as follows: Due To/From Other Funds Due to Other Funds Fire District Redevelopment Nonmajor Special Agency Governmental Funds Revenue Fund Capital Projects Funds Total Due From Other Funds: General $ 318,428 $ 2,548,060 $ 3,251,924 $ 6,118,412 Redevelopment Agency- Capital Projects - - 230,051 230,051 Nonmajor Funds - 244,994 - 244,994 Total $ 318,428 $ 2,793,054 $ 3,481,975 $ 6,593,457 Due to/from other funds were made to cover negative cash balance at June 30, 2010. Advances To/From Other Funds Advances from Other Funds Redevelopment Nonmajor Agency Governmental Funds Capital Projects Funds Total Advances to Other Funds: General $ 56,861,058 $ 300,000 $ 57,161,058 Redevelopment Agency- Capital Projects - 3,953,624 3,953,624 Total $ 56,861,058 $ 4,253,624 $ 61,114,682 During the current and previous fiscal years, the City of Rancho Cucamonga has made loans to the Rancho Cucamonga Redevelopment Agency. These loans which amount to $56,861,058 as of June 30, 2010, bear interest at rates up to 12% per annum depending upon when the loan was initiated. The City may demand payment of all or a portion of the principal balance at any time as funds become available; however, such demands are not anticipated with the next fiscal year. As of June 30, 2010, accrued unpaid interest on these loans was$47,339,832. The $300,000 advance from the General Fund to the Park Development Fund was done on March 5, 1996, based upon Council approval. The advance was to provide funding of Phase I for the Northeast Community Park and is to be repaid in the future (no specific date). 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 6: Interfund Receivable, Payable and Transfers (Continued) During the formation of Community Facilities District CFD 2000-01 (District), a number of meetings were held with property owners within the proposed boundaries to discuss participation in the District and benefits to their property. As a result of those meetings, the approved boundary map was modified at the landowners' request to exclude certain properties from the District boundaries. Property owners that were excluded from the District boundaries, but will be receiving direct benefit from the improvements constructed by CFD 2001-01, were advised that reimbursement would be required when their properties are developed. The Redevelopment Agency advanced the pro-rata share for properties that will receive benefit from the improvements, but are not participating in the District. At June 30, 2010, the advance was $3,953,624. Interfund Transfers Transfers Out: Redevelopment Redevelopment General Agency Agency Municipal Nonmajor Funds Fund Capital Projects Debt Service Utility Funds Total Transfers In: General $ - $ $ - $ 692,400 $ 104 $ 692,504 Fire District 15,308,650 - 1,922,850 - - 17,231,500 Redevelopment Agency- Capital Projects - - 7,535,810 - 7,535,810 Sports Complex 625,489 - - - - 625,489 Nonmajor Funds 17,200 531,036 - - 138,647 686,883 Total $ 15,951,339 $ 531,036 $ 9,458,660 $ 692,400 $ 138,751 $ 26,772,186 The General Fund transferred $625,489 to the Sports Complex to cover the budgeted amount and $15,308,650 to the Fire District primarily to prefund the District's OPEB liability. The Rancho Cucamonga Redevelopment Agency Debt Service Fund transferred $7,535,810 to the Rancho Cucamonga Redevelopment Agency Capital Project Fund and $1,922,850 to the Fire District to cover the cost of operations and capital projects. The Municipal Utility transferred $692,400 to the General Fund to cover the cost of operations. 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations a. Long-Term Debt—Governmental Activities The following is a schedule of changes in governmental activities long-term debt for the fiscal year ended June 30, 2010: July 1,2009 Additions Repayments June 30,2010 One Year Bonds: Tax Allocation Refunding Bonds-1999 Issue $ 38,400,000 $ $ 2,420,000 $ 35,980,000 $ 2,530,000 Tax Allocation Bonds 20011ssue 71,795,000 10,000 71,785,000 10,000 Tax Allocation Bonds 20041ssue 152,380,000 3,700,000 148,680,000 3,870,000 Tax Allocation Bonds 2007 Issue A&B 151,080,000 2,535,000 148,545,000 2,660,000 Total Bonds 413,655,000 8,665,000 404,990,000 9,070,000 Developer Loans: Federal Bureau of Reclamation 1,228,157 681,315 546,842 546,842 Price Club/Costco 7,281,597 700,536 436,841 7,545,292 - Bank of New York 12,245,079 - 332,013 11,913,066 361,803 Total Developer Loans 20,754,833 700,536 1,450,169 20,005,200 908,645 Capital Lease 47,680 - 18,393 29,287 19,292 Cucamonga Valley Water District-Payment Deferral - 16,517 - 16,517 - Claims and judgments payable 2,405,819 1,341,964 1,238,708 2,509,075 1,401,000 Accrued employee benefits 7,527,108 3,158,864 3,035,472 7,650,500 3,074,000 Total $ 444,390,440 $ 5,217,881 $ 14,407,742 435,200,579 $ 14,472,937 Unamortized bond premium 4,634,306 $ 439,834,885 A description of individual components of long-term debt outstanding as of June 30, 2010, is as follows: Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Development Project, 1999 Tax Allocation Refunding Bonds, $54,945,000. These bonds are dated August 30, 1999, and were issued in order to finance a portion of the Agency's Rancho Development Project, to currently refund the outstanding principal balance of $47,715,000 of the Rancho Development Project 1990 Tax Allocation Bonds and to fund redevelopment activities. Interest is payable semi-annually on March 1 and September 1, of each year commencing March 1, 2000. The bonds mature in annual installments ranging from $1,880,000 to $4,165,000 starting September 1, 2000 to September 1, 2020, and bear interest ranging from 4.25% to 5.25%. 54 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) The bonds maturing before September 1, 2009, are not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 2010, are subject at the option of the Agency, to redemption, in whole or in part, by lot, prior to their stated maturities on any date, commencing September 1, 2009. The bonds maturing on September 1, 2020, are subject to mandatory redemption in part from sinking account installments on September 1, 2015, and on each September 1 thereafter, up to and including September 1, 2020. Tax Revenues, except as provided below, are pledged in their entirety to the payment of principal of, and interest on and redemption premium, if any, on the bonds listed above and are referred to in the applicable series resolutions, as "Pledged Tax Revenues." Pledged Tax Revenues, except for the 1996 Housing Set-Aside Tax Allocation Bonds, do not include that portion of Tax Revenues derived from the Project Area which are required by Section 33334.2 of the Redevelopment Law to be set aside by the Agency in a separate low and moderate income housing fund and be used for the purpose of increasing and improving the community's supply of low and moderate income housing. Pledged Tax Revenues also do not include that portion of tax revenues derived from the Project Area which are required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency has entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with: a) the Chino Basin Municipal Water District, b) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c) the Cucamonga County Water District, d) the Foothill Fire Protection District, and e) various school districts located within the project area. Under the terms of these agreements, the Agency has agreed that certain tax revenues attributable to those areas and which are allocated to the Agency pursuant to Section 33670(b), shall be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments are to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also do not include interest income on the various funds and accounts created by the series resolutions. Any such investment income is available to the Agency to meet debt service payments on the bonds but is not specifically pledged therefore. In addition to providing for the pass-through of tax revenue to the County Free Library and the San Bernardino County Flood Control District, the agreement between the Agency and the County of San Bernardino also provides that tax revenues, which would have been allocated to the County had not the Redevelopment Plan been adopted, will be fully allocated to the Agency until fiscal year 1998-1999. The agreement, however, further provides that the Agency must use such tax revenues for the development of certain regional facilities, as agreed to between the County and the Agency. The Agency anticipates satisfying this regional facilities requirement with certain previously received bond proceeds. The balance at June 30, 2010, amounted to $35,980,000. The following schedule illustrates the debt service requirements to maturity for the 1999 Tax Allocation Refunding Bonds as of June 30, 2010: 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) Principal Interest 2010-2011 $ 2,530,000 $ 1,791,385 2011-2012 2,645,000 1,664,540 2012-2013 2,785,000 1,528,790 2013-2014 2,915,000 1,386,290 2014-2015 3,065,000 1,235,258 2015-2020 17,875,000 3,537,056 2020-2025 4,165,000 109,331 Total $ 35,980,000 $ 11,252,650 2. Rancho Cucamonga Redevelopment Agency, Rancho Development Project, 2001 Tax Allocation Bonds, $74,080,000. These bonds are dated August 7, 2001, and were issued in order to finance a portion of the Agency's Rancho Development Project and to pay certain costs of issuance of the bonds. Interest is payable semi- annually on March 1 and September 1 of each year commencing March 1, 2002. The bonds mature in annual installments from $10,000 to $11,540,000 from September 1, 2002 to September 1, 2030, and bear interest ranging from 3.000% to 5.125%. The bonds maturing before September 1, 2011, are not subject to call and redemption prior to their stated maturities. The bonds maturing on or after September 1, 2012, are subject, at the option of the Agency to redemption, in whole or in part, by lot, prior to their stated maturities on any date, commencing September 1, 2011, among maturities at the discretion of the Agency and by lot within a maturity upon payment, from any source of funds available, of the principal amount and accrued interest payable thereon, without premium. Tax Revenues, except as provided below, are pledged in their entirety to the payment of principal, interest and redemption premium, if any, on the bonds listed above and are referred to in the applicable series resolutions as "Pledged Tax Revenues." Pledged Tax Revenues, except for the 1996 Housing Set-Aside Tax Allocation Bonds, do not include that portion of Tax Revenues derived from the Project Area which are required by Section 33334.2 of the Redevelopment Law to be set aside by the Agency in a separate low and moderate income housing fund and be used for the purpose of increasing and improving the community's supply of low and moderate income housing. Pledged Tax Revenues also do not include that portion of tax revenues derived from the Project Area which are required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency has entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with: a) the Chino Basin Municipal Water District, b) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c) the Cucamonga County Water District, d) the Foothill Fire Protection District, and e) various school districts located within the project area. Under the terms of these agreements, the Agency has agreed that certain tax revenues attributable to those 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) areas and which are allocated to the Agency pursuant to Section 33670(b), shall be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments are to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also do not include interest income on various funds and accounts created by the series resolutions. Any such investment income is available to the Agency to meet debt service payments on the bonds, but is not specifically pledged therefore. The balance at June 30, 2010, amounted to $71,785,000. The following schedule illustrates the debt service requirements to maturity for the 2001 Tax Allocation Bonds as of June 30, 2010: Principal Interest 2010-2011 $ 10,000 $ 3,719,994 2011-2012 15,000 3,719,369 2012-2013 10,000 3,718,744 2013-2014 10,000 3,718,244 2014-2015 15,000 3,717,619 2015-2020 80,000 18,576,719 2020-2025 10,335,000 18,110,378 2025-2030 49,770,000 9,601,881 2030-2035 11,540,000 295,713 Total $ 71,785,000 $ 65,178,661 3. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, 2004 Tax Allocation Bonds, $165,680,000. These bonds are dated March 1, 2004, and were issued in order a.)to refund and defease the Agency's $52,225,000 outstanding principal amount Rancho Redevelopment Project 1994 Tax Allocation Refunding Bonds, and b.) to fund redevelopment activities. The issue consists of $109,690,000 Serial Bonds with maturities beginning September 1, 2005 through September 1, 2025, $12,210,000 Term Bonds due September 1, 2028, bearing interest at 4.45% per annum and $43,780,000 Term Bonds due September 1, 2032, bearing interest at 4.50% per annum. Interest is payable semi-annually on March 1 and September 1 of each year commencing September 1, 2004. The Serial Bonds mature in annual installments ranging from $2,950,000 to $10,955,000 starting September 1, 2005 to September 1, 2025, and bearing interest ranging from 2.00% to 5.00%. Bonds maturing on or before September 1, 2014, are not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 2015, are subject, at the option of the Agency, to redemption in whole or in part, prior to their stated maturities on any date, commencing September 1, 2014. The bonds maturing on September 1, 2028 and September 1, 2032, are subject to mandatory redemption in part from sinking account installments on September 1, 2026 and September 1, 2029, respectively, and on each September 1 thereafter, at a redemption price equal to 100% of the principal amount plus accrued interest, if any, to the redemption date, without premium. 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) The Agency has pledged for the repayment of the Bonds the Tax Revenues which constitute all taxes allocated to the Agency with respect to the Project, pursuant to Article 6 of Chapter 6 (commending with Section 33670)of the Law and Section 16 of Article XVI of the Constitution of the State, or pursuant to other applicable state laws, and as provided in the Redevelopment Plan. Pledged Tax Revenues also do not include that portion of tax revenues derived from the Project Area which are required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency has entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with a.) the Chino Basin Municipal Water District, b.) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c.)the Cucamonga County Water District, d.)the Foothill Fire Protection District, and e.) various school districts located within the project area. Under the terms of these agreements, the Agency has agreed that certain tax revenues attributable to those areas and which are allocated to the Agency pursuant to Section 33670 (b), shall be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments are to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also do not include interest income on various funds and accounts created by the series resolutions. Any such investment income is available to the Agency to meet debt service payments on the bonds but is not specifically pledged therefore. The bonds are further secured by a financial guarantee insurance policy in the event of nonpayment of principal and/or interest. The balance at June 30, 2010, amounted to $148,680,000, plus unamortized bond premium of$3,811,267. The following schedule illustrates the debt service requirements to maturity for the 2004 Tax Allocation Bonds as of June 30, 2010: Principal Interest 2010-2011 $ 3,870,000 $ 6,455,590 2011-2012 4,070,000 6,257,090 2012-2013 4,270,000 6,091,290 2013-2014 4,405,000 5,917,115 2014-2015 4,620,000 5,691,490 2015-2020 26,630,000 24,933,518 2020-2025 41,100,000 17,607,183 2025-2030 20,365,000 11,207,158 2030-2035 39,350,000 3,245,850 Total $ 148,680,000 $ 87,406,284 4. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, Housing Set-aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) Housing Set-Aside Tax Allocation Bonds Tax-Exempt Series 2007A and $82,315,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Taxable series 2007B to (a) refund and redeem the Agency's outstanding Rancho Redevelopment Project 1996 Housing Set-Aside Tax Allocation Bonds, (b) provide for the refunding and defeasance of the California Statewide Communities Development Authority Multifamily Housing Revenue Bonds, (c) extend set-aside and affordability restriction on 558 units within four apartment projects located in the City of Rancho Cucamonga pursuant to an Extended Affordability Agreement, and (d) finance other low and moderate income housing projects in or of benefit to the Project Area. The Series A issue consists of$29,950,000 in Serial bonds with maturities beginning September 1, 2008 through September 1, 2026, bearing interest ranging from 3.25% through 5.0%; and $43,355,000 in Term bonds due September 1, 2034, bearing interest at 5%. The Series B issue consists of $19,675,000 Term bonds due September 1, 2017, bearing interest at 5.529%; and $62,640,000 Term bonds due September 1, 2031, bearing interest at 6.262%. Interest on both Series A and B bonds is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2008. The Series A Bonds maturing on or before September 1, 2017, are not subject to call and redemption prior to maturity. The Series A Bonds maturing on or after September 1, 2018, will be subject to call and redemption prior to maturity at the option of the Agency, on or after September 1, 2017. The Taxable Series B Bonds are subject to optional redemption, on any date prior to their maturity. The 2007 bonds are secured and payable from Tax Revenues on a subordinate basis with respect to a Loan Agreement dated as of December 15, 1997, between the Agency, Northtown Housing Development Corporation and Pacific Life Insurance Company (Loan Payable-Bank of New York) —the Senior Loan. The Indenture does not permit additional senior obligations. The Agency is permitted under the Indenture to incur additional obligations— Parity Bonds—secured by a pledge of Tax Revenues on a parity basis with the pledge of Tax Revenues to the 2007 Bonds. Tax Revenues which secure the 2007 Bonds consist solely of the Housing Set-Aside. The balance at June 30, 2010, amounted to $148,545,000 plus unamortized bond premium of$823,039. Principal Interest 2010-2011 $ 2,660,000 $ 8,316,460 2011-2012 2,790,000 7,865,337 2012-2013 2,925,000 8,043,262 2013-2014 3,070,000 7,578,586 2014-2015 3,230,000 7,727,206 2015-2020 18,835,000 34,934,939 2020-2025 24,700,000 29,165,552 2025-2030 37,280,000 20,127,025 2030-2035 53,055,000 6,868,523 Total $ 148,545,000 $ 130,626,890 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) Developer Loans Payable 1. During fiscal year 1988-1989, the Rancho Cucamonga Redevelopment Agency obtained a loan from the Federal Bureau of Reclamation in connection with the Day Creek Water Project. The original debt amounted to $13,400,000 and, in accordance with the terms of the agreement, annual payments of $681,315 have been made to the County of San Bernardino (acting as lead agency for the Federal Government). Future interest payment cannot be reasonably estimated. The balance at June 30, 2010, amounted to $546,842. The following schedule illustrates the debt service requirements to maturity as of June 30, 2010: Principal 2010-2011 $ 546,842 2. In December 1990, the Rancho Cucamonga Redevelopment Agency entered into a Disposition and Development Agreement with The Price Company (Developer). In accordance with this agreement the Agency executed a 23-year note in the amount of $3,756,615. The note was issued to provide financing of certain redevelopment activities that included the acquisition of approximately 13 acres of land. The note bears interest of 9% per annum. The Agency shall pay the Developer quarterly payments amounting to 50% of taxes derived from the imposition of the Bradley Burns Uniform Local Sales and Use Tax Law commencing with Section 7200 of the revenue and Taxation Code of the State of California, as amended, arising from all businesses and activities conducted on the Costco Parcel. The Note was renegotiated on July 18, 2002, as the Costco Note. The new loan principal of $6,347,171 included accrued interest through that date, however the new principal was not recorded on the books until fiscal year 2006 - 2007. In the event that the debt service payments are insufficient to fully discharge the principal and interest on this note with the 23 note years, then, in such event, the unpaid balance of principal and accrued interest, if any, shall be deemed forgiven. The balance at June 30, 2010, amounted to $7,545,292. 3. On August 21, 1996, the Agency executed a note payable to Pacific Life Insurance Company (subsequently assigned to Bank of New York) in the amount of $9,411,477. The proceeds of the note were paid directly to Northtown Housing Development Corporation for the development of the Northtown Housing project. The outstanding principal bears interest at 8.78% compounding semi-annually from the date of the note until paid. Interest was added to the principal on each March 15 and September 15 through March 15, 2002, amounting to $4,210,264 in addition to principal. Commencing on September 15, 2002, both principal and interest shall be due and payable semi-annually on March 15 and September 15, of each year through March 2026. The balance at June 30, 2010, amounted to $11,913,066. The following schedule illustrates the debt service requirements to maturity as of June 30, 2010: 60 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) Principal Interest 2010-2011 $ 361,803 $ 1,038,197 2011-2012 394,268 1,005,732 2012-2013 429,644 970,356 2013-2014 468,194 931,806 2014-2015 510,204 889,796 2015-2020 3,325,593 3,674,407 2020-2025 5,110,435 1,889,565 2025-2030 1,312,925 87,075 Total $ 11,913,066 $ 10,486,934 Capital Leases Payable On November 1, 2006, the City entered into a capital lease agreement with LaSalle Bank National Association to acquire an asphalt grinding machine for $90,000. The agreement requires semi annual payments of $10,238 due in May and November of each year with the final payment due in November 2011. At June 30, 2010, the outstanding balance on the lease was $29,287. The following schedule illustrates the debt service requirements as of June 30, 2010: For the Year Ending: Total 2011 $ 20,476 2012 10,238 Net Minimum Lease Payments 30,714 Less:Amount Representing Interest (1,427) Present Value of Net Minimum Lease Payments $ 29,287 Cucamonga Valley Water District— Payment Deferral On May 20, 2010, the City entered into an installment agreement with Cucamonga Valley Water District for the deferred payment of increased rates and charges adopted by the District. Specifically, the City's Interruptible Government Rate discount of 10% was eliminated, the Bimonthly Service Charge will be increased incrementally over the next 5 years, and the MWD Surcharge Rate will be applied as a pass-through rate for a 5 year period ending July 1, 2014. Beginning on the Commencement Date of May 1, 2010, until the end of the first year, the City shall only be required to pay 90% of the full amount due and owing for the Water Service Charges imposed during Year One. The remaining balance due of 10% can be accrued up to a maximum amount of $275,000. Beginning on the anniversary date of the Commencement Date and until the end of the second year, the City shall make payments for the entire amount due and owing for the current Water Service Charges imposed during Year Two. In addition on a monthly basis in Year Two, the City shall make an additional payment equal to 1/12 of the Installment Amount accrued at the end of Year One. The unpaid Installment Amount principal will bear interest in the 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 7: Long-Term Debt Obligations (Continued) amount of $2,200 which uses an assumed interest rate of .80%. The final payment shall become due and owing no later than April 30, 2012. The deferred amount outstanding as of June 30, 2010 is $16,517. Claims and Judgments Payable The City's liability regarding self insurance is described in Note 13 of the Notes to Financial Statements. The liability will be paid as it becomes due by the General Fund and the Fire District Fund. Accrued Employee Benefits The City's policies relating to compensated absences are described in Note 1 of the Notes to Financial Statements. The liability will be paid in future years as it becomes due by the General Fund and the Fire District Fund. Debt Service Requirements As previously discussed, the City has pledged, as security for bonds it has issued, either directly or through the Financing Authority, a portion of the tax increment revenue (including Low and Moderate Income Housing set-aside) that it receives. These bonds were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. The City has committed to appropriate each year, from these resources amounts sufficient to cover the principal and interest requirements on the debt. Total principal and interest remaining on the debt is $722,353,159 with annual debt service requirements as indicated above. For the current year, the total tax increment revenue, net of pass through payments, recognized by the Agency was $77,254,954 and the debt service obligation on the bonds was $30,456,047. 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 8: Other Special Obligations The following issues of Residential Mortgage Revenue Bonds, Special Assessment District Bonds, and Community Facility District Bonds are not reflected in the Statement of Net Assets because these are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Redevelopment Agency, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. The outstanding amounts at June 30, 2010, were as follows: Outstanding Amount at June 30, 2010 City of Rancho Cucamonga: Reassessment District 1999-1 $ 800,000 Assessment District 93-1 2,095,000 Community Facilities District No. 93-3 3,000,000 Community Facilities District No. 88-2 1,825,000 Community Facilities District No. 2000-01 1,090,000 Community Facilities District No. 2000-02 5,940,000 Community Facilities District No. 2001-01 Series A 12,755,000 Community Facilities District No. 2001-01 Series B 850,000 Community Facilities District No. 2003-01 Series 2003-A 14,530,000 Community Facilities District No. 2003-01 Series 2003-B 2,825,000 Community Facilities District No. 2000-03 9,435,000 Community Facilities District No. 2004-01 41,903,950 Community Facilities District No. 2006-01 5,600,000 Community Facilities District No. 2006-02 2,870,000 Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 2,992,959 Total $ 108,511,909 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 IV. OTHER INFORMATION Note 9: Pension Plan Obligations a. City Miscellaneous Plan Plan Description The City of Rancho Cucamonga 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, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS' annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814. Funding Policy Participants are required to contribute 8% of their annual covered salary. The City makes the contributions required of employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate as a percentage of annual covered payroll is 9.876%. The contribution requirements of plan members and the City are established and may be amended by PERS. Annual Pension Cost (APC) and Net Pension Obligation For the year ended June 30, 2010, the City's annual pension cost of $5,115,158 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. A summary of principle assumptions and methods used to determine the APC is shown below: Valuation Date June 30, 2009 Actuarial Cost Method Entry Age Actuarial Cost Method Amortization Method Level Percent of Payroll Average Remaining Period 24 years as of the Valuation Date Asset Valuation Method 15-Year Smoothed Market Actuarial Assumptions: Investment Rate of Return 7.75% (net of administrative expenses) Projected Salary Increases 3.55% to 14.45% depending on age, service and type of employment Inflation 3.00% Payroll Growth 3.25% Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation component of 3.00% and an annual production growth of 0.25%. Initial unfunded liabilities are amortized over a closed period that depends on the Plan's date of entry into CalPERS. Subsequent plan amendments are amortized as a level percent of pay over a closed 20-year period. Gains and losses that occur in the operation 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 9: Pension Plan Obligations (Continued) of the plan are amortized over a rolling period, which results in an amortization of about 6% of unamortized gains and losses each year. If the Plan's accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30-year amortization period. Three-Year Trend Information for PERS-City Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APC) Contributed Obligations 6/30/2008 $ 4,670 100% - 6/30/2009 5,084 100% - 6/30/2010 5,115 100% - Schedule of Funding Progress for PERS Miscellaneous Plan of the City of Rancho Cucamonga (Amounts in Thousands) Actuarial Accrued UAAL as Actuarial Actuarial Liability Unfunded a%of Valuation Value of (AAL)Entry AAL Funded Covered Covered Date Assets Age (UAAL) Ratio Payroll Payroll 6/30/2007 $ 85,947 $ 90,860 $ (4,913) 94.6 % $ 25,435 19.3 % 6/30/2008 95,434 101,840 (6,406) 93.7 % 27,683 23.1 % 6/30/2009 103,495 120,906 (17,411) 85.6 % 28,689 60.7 % The information above is the most recent information available. b. Fire District's Miscellaneous and Safety Plan Plan Description The Fire District contributes to the California Public Employees Retirement System (PERS), a cost-sharing multiple-employer defined benefit pension plan. PERS provides retirement, disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814. Funding Policy Participants are required to contribute 8% (9% for safety employees) of their annual covered salary. The Fire District makes the contributions required of employees on their behalf and for their account. The Fire District is required to contribute at an actuarially determined rate; the current rate as a percentage of annual covered payroll is 13.538% for the non-safety employees and 23.862% for safety employees. The contribution requirements of plan members and the City are established and may be amended by PERS. 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 9: Pension Plan Obligations (Continued) Annual Pension Cost (APC) For the year ended June 30, 2010, the Fire District's annual pension cost for the miscellaneous and safety employees of $3,532,584 was equal to the Fire District's required and actual contributions. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. Three-Year Trend Information for PERS - Fire District Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APC) Contributed Obligations 6/30/2008 3,331 100% - 6/30/2009 3,591 100% - 6/30/2010 3,533 100% - Note 10: PARS Retirement Enhancement Plan Plan Description The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, a agent multiple-employer defined benefit pension plan. The Plan provides pension benefits to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal to a percentage of highest pay multiplied by years of service, with the percentage varying by retirement age based on a 3% at 60 target offset by CalPERS 2.5% at 55 formula. Sample rates are as follows: Age Tier 1 55 0.000% 56 0.100 57 0.200 58 0.300 59 0.400 60+ 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. Benefits are increased by a 2% annual cost of living adjustment after retirement. There are no employee contributions for either tier. Funding Policy The City's funding policy is to contribute the annual required contribution. The annual required contribution equals the sum of: • normal cost, and • amortization of the unfunded actuarial accrued liability. 66 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 10: PARS Retirement Enhancement Plan (Continued) Annual Pension Cost (APC) Government Accounting Standards Board Statement No. 27 (Statement 27) requires that the City determine the plan's annual pension cost based on the most recent actuarial valuation. The annual pension cost equals the plan's annual required contribution, adjusted for historical differences between the annual required contribution and amounts contributed. The actuary has determined the City's annual required contribution equal to the sum of (a) normal cost, and (b) amortization of the unfunded actuarial accrued liability. For the year ending June 30, 2010, the City's annual required contribution is $1,389,012. The City's actual contribution was $1,389,012. The required contribution was based on the June 30, 2008, actuarial valuation using the entry age normal (level percentage of pay) actuarial cost method. The actuarial assumptions included (a) 7.0% investment return (net of administrative expenses), (b) CalPERS 1997 — 2002 Experience Study table for Males and Females, (c) projected annual payroll increases of 3.25% a year plus merit, and (d) cost-of-living adjustment of 2% per year. Both (a) and (c) included an inflation component of 3%. The unfunded actuarial accrued liability is being amortized as a level percent of pay over a closed period. The amortization periods are (1) 20 years for initial unfunded accrued liability (from July 1, 2002), (2) 15 years for gains/losses, (3) 20 years for plan amendments, and (4) 20 years for assumption changes. The following table provides 3 years of historical information of the Annual Pension Cost: Annual Pension Cost(APC) Percentage of Net Pension Year Ending (in Thousands) APC Contributed Obligation 6/30/2008 $ 1,325 100% $ - 6/30/2009 1,483 100% - 6/30/2010 1,389 100% - (Amounts in Thousands) Unfunded Actuarial Actuarial Actuarial Actuarial UAAL as a % Valuation Value of Accrued Accrued Funded Covered of Covered Date Assets Liability Liability Ratio Payroll Payroll 07/01/2006 $ 3,830 $ 10,144 $ 6,314 37.8% $ 20,767 30.4% 07/01/2008 6,652 13,118 6,466 50.7% 27,185 23.8% Actuarial valuation is performed every other year. The information above is the most recent information available. 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 11: Other Post-Retirement Benefits Plan Description The City and Redevelopment Agency do not provide post-employment benefits; however, medical coverage is provided to Fire District personnel and their dependents upon retirement under the Rancho Cucamonga Fire Protection District Memorandum of Understanding. The Fire District provides other postemployment benefits (OPEB)through the California Employers' Retiree Benefit Fund (CERBT), an agent multiple-employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CaIPERS). For Tier 1 employees, the Fire District pays 100% of the medical insurance premium for the participant and their family. For Tier 2 employees, the Fire District contributes a predetermined monthly maximum of$97-$101 for each eligible retiree towards health insurance. These benefits are provided per contract between the Fire District and the employee associations. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North 400 Q Street, Sacramento, CA 95814 or by visiting the CalPERS website at www.calpers.ca.gov. Funding Policy The contribution requirements of plan members and the Fire District are established and may be amended by the Fire District, City Council and/or the employee associations. Currently, contributions are not required from plan members. Total contributions of $15,803,290 were made during the 2009-2010 fiscal year to cover the required contribution rate of 16.1% of annual covered payroll (annual payroll of active employees covered by the plan)and to prefund benefits. As a result, the Fire District calculated and recorded a prepaid other post employment benefits asset, representing the difference between the Annual Required Contribution (ARC) and actual contributions made, as presented below: Annual required contribution (ARC) $ 1,292,000 Interest on net OPEB asset (155,000) Adjustment to ARC 173,481 Annual OPEB cost 1,310,481 Contributions made 15,803,290 Decrease/(Increase) in Net OPEB asset (14,492,809) Net OPEB obligation (asset)June 30, 2009 (2,000,000) Net OPEB obligation (asset)June 30, 2010 $ (16,492,809) The contribution rate of 16.1% is based on the ARC of$1,292,000, an amount actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis is projected to cover the annual normal cost and the amortization of unfunded actuarial liabilities (or funding excess)over a thirty year period. Annual OPEB Costs and Net OPEB Obligation (Asset) For the fiscal year 2009-2010, the Fire District made its annual OPEB actuarial required contribution of $1,292,000 and contributed an additional $14,511,290 to prefund its OPEB obligation. The City implemented the provision of GASB Statement 45 in fiscal year ended June 30, 2009, information on the annual OPEB cost, percentage of annual 68 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 11: Other Post-Retirement Benefits (Continued) OPEB cost contributed, and net OPEB obligation is available for the fiscal year ended June 30, 2009, and thereafter. Fiscal Annual Actual Percentage of Net OPEB Year OPEB Contribution Annual OPEB Obligation End Cost (Net of Adjustments) Cost Contributed (Asset) 6/30/2009 $ 1,382,000 $ 3,382,000 245% $ (2,000,000) 6/30/2010 1,292,000 15,803,290 1223% (16,492,809) Funded Status and Funding Progress 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 future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the Fire District 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 below presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Only one year is presented as this is the first year of the plan. Schedule of Funding Progress (Amounts in Thousands) Unfunded UAAL as a Actuarial Actuarial Acturial Actuarial Percent of Valuation Value of Accrued Accrued Funded Covered Covered Date Assets Liability Liability Ratio Payroll Payroll 6/30/2007 $ - $ 16,515 $ 16,515 0.0% $ 7,769 212.6% 6/30/2009 2,798 17,561 14,763 19.0% 8,021 184.1% Actuarial valuation is performed every other year Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes 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 benefit costs between the 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 the actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2009 actuarial valuation, the entry age normal level percentage of pay actuarial cost method was used. The actuarial assumptions include a 7.75% investment rate of return, which is a blended rate of the expected long-term investment return on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, and annual healthcare cost trend rate of between 4.5% and 10.4%. The actuarial value of assets is set equal to the reported market value of assets. The UAAL is being amortized as a level percentage of payroll on an open basis. The remaining amortization period at June 30, 2010, was twenty-seven years. The number of active participants is 149. 69 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 12: Net Assets Restatements Beginning net assets have be restated as follows: Governmental Activities: Internal Service Funds To implement the provisions of GASB Statement no. 51, Accounting and Financial Reporting for Intangible Assets. $ 476,399 Business-Type Activities: Municipal Utility To correct the accumulated depreciation on capital assets based on a valuation performed during the fiscal year. $ 460,383 To implement the provisions of GASB Statement no. 51, Accounting and Financial Reporting for Intangible Assets. 15,994 Total Business-Type Activities 476,377 Total Net Asset Restatements $ 952,776 Note 13: Summary Disclosure of Self-Insurance Contingencies City Disclosure of Self-Insurance Contingencies The City is self-insured for the first $250,000 on each general liability claim and for the first $100,000 on each workers' compensation claim. The insurance coverage in excess of the self-insured amount is provided by the Public Agency Risk Sharing Authority of California (PARSAC) up to a limit of $650,000 and $350,000 for general liability and workers' compensation respectively. Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The City funds all claims payable, including those incurred but not reported, in the yearly deposit it pays to PARSAC. Effective June 1, 1986, the City became a member of the PARSAC, a public entity risk pool currently operating as a common risk management and insurance program for 36 California cities. The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for information of the PARSAC provides that the pool will be self-sustaining through member premiums. The PARSAC will publish its own financial report for the year ended June 30, 2010, which can be obtained from Public Agency Risk Sharing Authority of California, Sacramento, California. Fire District Disclosure of Self Insurance Contingencies For general liability, the Fire District is covered through the Fire Agencies Insurance Risk Authority (FAIRA) on each general liability claim up to $1,000,000. The liability deductible is $0, except $5,000 for Management Liability claims, $1,000 for auto claims and $5,000 for property claims. The insurance coverage in excess of the $1,000,000, up to $10,000,000, is provided by American Alternative Insurance Corporation. 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 13: Summary Disclosure of Self-Insurance Contingencies (Continued) Effective, June 29, 1989, the Fire District became a member of FAIRA, a public entity risk pool currently operating as a common risk management and insurance program for 99 California Fire Protection Districts. The Fire District pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for information of FAIRA provides that the pool will be self-sustaining through member premiums. FAIRA publishes its own financial report for the year ended June 30, 2010, which can be obtained from the Fire Agencies Insurance Risk Authority, Novato, California. For workers compensation, the Fire District is self-insured for the first $300,000 on each workers compensation claim as a member of the Public Agency Self-Insurance System (PASIS) of San Bernardino County. The insurance coverage in excess of the self-insured amount is provided by the California State Association of Counties Excess Insurance Authority (CSAC-EIA). Effective, July 1, 2002, the Fire District became a member of CSAC-EIA, a public entity risk pool currently operating as a common risk management and insurance program for 145 California cities, counties, school districts, municipal services organizations, and joint power authorities. The Fire District pays an annual premium to the pool for its excess workers compensation insurance coverage. The agreement for information of the CSAC-EIA provides that the pool will be self-sustaining through member premiums. CSAC-EIA publishes its own financial report for the year ended June 30, 2010, which can be obtained from the California State Association of Counties Excess Insurance Authority, Moraga, California. Workers compensation claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The Fire District funds all claims payable, including those incurred, but not reported, in the yearly deposit it pays to PASIS. There have been no significant changes in insurance coverage from the prior year. During the past three fiscal years, the amount of settlements has not exceeded the amount of insurance coverage. The City and the Fire District are involved in litigation arising in the normal course of business. Although the legal responsibility and financial impact with respect to such litigation cannot be presently ascertained, based on information from the service agent and others involved with the administration of the programs, the City believes that the self-insurance designation of$8,401,532 is adequate to cover such losses. The following is a summary of the changes in the claims liability over the past two fiscal years for the City and the Fire District combined: Current Year Claims Beginning and Changes in Claim Ending Fiscal Year Balance Estimates Payments Balance 2008-2009 $ 3,041,221 $ (48,515) $ (586,887) $ 2,405,819 2009-2010 2,405,819 1,298,443 (1,195,187) 2,509,075 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 14: Participation Agreements In August 2005, the Agency entered into a real estate tax, sales tax, tax increment and business license tax participation agreement with Bass Outdoor World, LLC (Bass Pro), 80 VGL, LLC and 20 VGL, LLC (80 VGL, LLC and 20 VGL, LLC are collectively referred to as Landlord). Under the terms of the agreement, the Agency is required to make annual payments equal to one hundred percent (100%) of the tax increment revenues, sales tax revenues and business license tax paid during each year. However, Landlord has the priority for reimbursements of real estate taxes paid for each year prior to any payments being made to Bass Pro. The total amount paid to Landlord and Bass Pro shall not exceed $1,100,000 in any given year. The agreement terminates in fiscal year 2032-2033. During the year ended June 30, 2010, the Agency made payments totaling $502,183. Note 15: Transactions with the State of California a. Proposition 1A Borrowing by the State of California Under the provisions of Proposition 1A 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 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 a ten-year period. The amount of this borrowing pertaining to the City of Rancho Cucamonga and the Rancho Cucamonga Fire Protection District was $2,211,348 and $1,203,062, respectively. Authorized with the 2009-10 State budget package, the Proposition 1A Securitization Program was instituted by the California Statewide Communities Development Authority ("California Communities"), a joint powers authority sponsored by the California State Association of Counties and the League of California Cities, to enable local governments to sell their Proposition 1A receivables to California Communities. Under the Securitization Program, California Communities simultaneously purchased the Proposition 1A receivables and issued bonds ("Prop 1A 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 California. 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 1A. The receivable sale proceeds were equal to the book value and, as a result, no gain or loss was recorded. b. Delay of State Gas Tax Payments In March 2010, the State Legislature passed legislation delaying a variety of State payments to local agencies in response to anticipated State cash flow problems in fiscal year 2010-2011. AB5 8x contains provisions to delay a portion (approximately 60%) of the payments of State Gas Tax monies for the first nine months of 2010-2011 (July 2010 through March 2011)to be paid no later than April 28, 2011. 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2010 Note 15: Transactions with the State of California (Continued) c. SERAF Shift for fiscal year 2009-2010 and 2010-2011 On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal years 2009-2010 and 2010-2011 to be deposited into the County "Supplemental" Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed to meet the State's Prop 98 obligations to schools. The California Redevelopment Association (CRA) and its member agencies filed a legal action in an attempt to stop these amounts from having to be paid; however, in May 2010 the Sacramento Superior Court upheld the legislation. This decision is in the process of being appealed by CRA and its member agencies. The payment of the SERAF was due on May 10, 2010, for fiscal year 2009-2010 and was made in the amount of $32,109,879. The legislation allowed this payment to be made from any available monies present in any project area(s). Subsequent legislation was passed which even allowed the funding for this payment to be borrowed from the Low and Moderate Income Housing Fund with appropriate findings from its legislative body. Any amounts borrowed from Low and Moderate Income Housing (including any suspended set-aside amounts) are to be repaid by June 30, 2015. If those amounts are not repaid, by that date, then the set-aside percentage to Low and Moderate Income Housing will increase from 20% to 25%for the remainder of the life of the Agency. To accomplish the payment, the Agency utilized $32,109,879 from its available resources in the Tax Increment Debt Service Fund. In the accompanying financial statements, the amount paid to the County has been reported as a use of current year resources. It is estimated that the Agency's share of the SERAF shift for fiscal year 2010-2011 will amount to approximately $6,604,511 and this amount will be payable in May 2011 if the appeal is not successful. Note 16: Subsequent Event On October 6, 2010, the City of Rancho Cucamonga, acting through the Rancho Cucamonga Municipal Utility (RCMU) and the Rancho Cucamonga Redevelopment Agency have mutually agreed to enter into a promissory note for$350,000 with an option for an additional $150,000, thereby allowing RCMU to pursue the potential acquisition of additional renewable energy resources that would benefit the Redevelopment Project Area. The promissory note has an initial balance of $350,000 which will accrue simple interest with a fixed rate that will be based on prime as of October 6, 2010 plus 2 percent per annum. RCMU will begin repayment of the promissory note in one year, and will make quarterly payments of $94,000, commencing on September 30, 2011. All principal and interest accrued on this promissory note will be due and payable by June 30, 2012, unless extended by mutual consent of both parties. 73 THIS PAGE INTENTIONALLY LEFT BLANK 74 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds Special Revenue Funds account for revenues derived from specific sources which are required by law or administrative regulation to be accounted for in a separated fund. Funds included are: Gas Tax Fund - Established to account for the revenue and disbursement of funds used for road construction and maintenance of the City network system. The City's share of state gasoline taxes provided the financing. SB325 Fund - Established to account for the revenue and disbursement of funds received by extending the statewide sales tax of 1/4 of 1 cent to motor vehicle fuel under the Transportation Development Act. Recreation Fund - Established to account for the wide variety of classes, special events, and activities sponsored by the Community Services Department. Park Development Fund - Established to account for the residential park development fees charged subdividers upon issuance of a building permit for development of future park or recreational sites. Beautification Fund - Established to account for fees collected to provide proper landscaping and irrigation systems after parkway and median improvements are made. Lighting Districts Fund - Established to account for the costs associated with providing street lights. Financing is provided by special assessments levied against the benefiting property owners. Landscape Maintenance Fund - Established to account for the costs associated with providing landscape maintenance. Financing is provided by special assessments levied against the benefiting property owners. Transportation Fund - Established to account for fees charged a subdivider for the construction and expansion of City streets and highways which provide additional capacity and safety. Pedestrian Grant Fund - Established to account for the revenue and disbursement of funds received for the construction of facilities provided for the exclusive use of pedestrians and bicycles. Transportation Enhancement Act Fund - ISTEA (formerly FAU) is a federal grant funding source for the construction of major streets and bridges. The Intermodal Surface Transportation Efficiency Act (ISTEA) is a competitive grant program that the City participates in. Community Development Block Grant Fund - Established to account for grants received from the Department of Housing and Urban Development. These revenues must be expended to accomplish one of the following objectives: elimination of slum or blight; or benefit to low and moderate income persons by providing loans and grants to owner-occupants and rental property owners to rehabilitate residential properties. Assessment Administration Fund - Established to account for the revenue and disbursement of administration of assessment districts. San Sevaine/Etiwanda Drainage Fund — Established to account for Development Impact fees collected in the San Sevaine/Etiwanda Drainage Assessment District for the construction of regional and mainline flood control projects in that district. 75 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) SB 140 Fund - Established to account for the revenue and disbursement of State matching funds for the construction of eligible street construction projects. Air Quality Improvement Fund - Established to account for the revenue and disbursement of funds received as a result of Assembly Bill 2766 which imposed an additional registration fee on motor vehicles. These revenues are to be used to reduce air pollution from motor vehicles and for related planning, monitoring, enforcement, and technical studies (Vehicle Code Section 9250.17 and Health and Safety Code Chapter 7, Part 5 of Division 26, commencing with Section 44220). South Etiwanda Drainage Fund - Established to account for monies deposited by property owners for initial consulting costs related to a possible formation of an assessment district for master planned drainage facilities. Lower Etiwanda Drainage Fund - Established to account for development impact fees collected in the Etiwanda area south of Base Line Road for the construction of master plan storm drain projects. Masi Commerce Center (Assessment District No. 93-1) Fund - Established to acquire the necessary infrastructure from the developer after the completion and acceptance of the approved improvements. Financing was provided by the sale of bonds pursuant to the provisions of the Improvement Act of 1915. Measure I Fund - Established to account for the revenue and disbursement of county/local gasoline tax funds for the construction and maintenance of eligible street projects. Library Services Fund - Established to account for services provided by the City of Rancho Cucamonga Library. Funding for this service is made possible through a transfer of San Bernardino County library tax revenues to the City of Rancho Cucamonga for library purposes. Some start-up costs were incurred during 1993/94-1 however, full implementation of City library services did not begin until September 1994. California Literacy Program Fund - The California Literacy Campaign Grant is administered by the State Library of California for the purpose of promoting literacy. Asset Forfeiture Fund - Established to account for the funds received from the Federal and State government for the equitable transfer of forfeited property and cash in which the City directly participates in the law enforcement efforts leading to the seizure and forfeiture of the property. Used Oil Recycling Grant Fund - In 1991, the Legislature passed AB 2076, the California Oil Recovery Enhancement Act. The act requires oil manufacturers to pay $0.04 to the California Integrated Waste Management Board for each quart of lubricating oil sold in the State of California. These grant funds are available to governmental agencies, based on population, for the purpose of establishing and administering used oil collection programs. These funds must be used expressly for oil recycling collection and educational programs. COPS Program Grant Fund - Established to account for a grant awarded as the result of the approval of State Assembly Bill 3229. The grant is a one-year award with no matching fund requirements. 76 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Teen Connection Program Grant Fund - Established to account for a grant provided through the San Bernardino County Superintendent of Schools by the State of California. The funds will enable the City to serve more youth in the community by expanding its teen services to a new level with the implementation of the Teen Connection Program. This program places a City staff member on high school campuses to share City program information with students; show them how they can earn scholarships to college and participate in an apprentice program for job experience; and feature annual awards and scholarships for those students who best exemplify community service and spirit. COPS In Schools Grant Fund - Established to account for a grant awarded by the Federal Department of Justice to provide supplemental funding of four (4) school resource officer (SRO) deputies at local schools. The total grant award was $500,000 and will be utilized over a three-year period. Drainage Facilities Fund - Established to account for fees charged developers for purposes of defraying the actual or estimated costs of constructing planned drainage or sewer facilities that are in the subdivision. CA State Library Fund - This "Family Place" training grant from the California State Library provided funding for two Library staff to attend a one-week training that will enable them to develop special programs at the Biane Library and the Family Resource Center. This grant has no matching requirements. Library Services and Technologies Act Fund - In fiscal year 1994/95, the City began providing library services to the residents of Rancho Cucamonga. In the fall of 1994, the City opened the interim municipal library facility with a 70,000 piece collection consisting of books, audio, video and reference materials. The 22,000 square foot facility doubled the amount of space previously available through the County system. The City's library collection and programs are designed to meet the needs of adults, young adults and children of Rancho Cucamonga. Funding for the library system comes from current taxes that are collected by the County for library services. The City's library system continues to operate from these same tax dollars and does not receive any additional funding from the City's general fund. Litter Reduction Grant Fund - Established to account for a grant from the State Department of Conservation. This grant will fund a program that will emphasize the collection and recycling of beverage containers at large venues, public areas, residential communities or schools. Energy Efficient and Conservation Block Grant (EECBG) Fund — Through the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy issued formula-based grants under the EECBG program. The grant funds received by the City funded the following activities: 1) Civic Center Phase I — Replacement of HVAC Controls; 2) Home Improvement Program Energy Efficiency Revolving Loan; 3) Energy Efficient Appliances, Electrical, and Mechanical Equipment Program; and 4) partial funding for an Energy Efficiency Coordinator to oversee the City's efforts to reduce energy consumption and conduct a public outreach campaign to promote energy efficiency. Senior Outreach Grant Fund — This fund was established to account for funds passed through the San Bernardino County Department of Aging and Adult Services from the California Department of Aging to provide free recreation classes and programs for senior citizens in the City of Rancho Cucamonga. These recreation activities focused on physical, social, psychological, educational, and recreational needs of older persons. The City provided an in-kind match of$1,200 in the form of marketing, staff oversight, and supplies. 77 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Underground Utilities Fund —This fund was established to account for fees collected from developers for future undergrounding of overhead utilities. Safe Routes to School Program - The Safe Routes to School Program fund is a grant fund for monies provided by the State of California. The state funds are administered through Caltrans as part of the California Department of Health Services" "Safe Routes to School Program" and are available for transportation projects that increase the safety of pedestrians and bicyclists. Foothill Boulevard Maintenance Fund - This fund was established to account for funding provided by Cal Trans as part of their relinquishment of Foothill Boulevard to the City of Rancho Cucamonga. This limited funding source will be utilized to repair and maintain portions of Foothill Boulevard. Citywide Infrastructure Improvement Fund - This fund was established to account for capital improvement reimbursements from the San Bernardino Associated Governments (SANBAG). The funds will be used for general infrastructure improvements throughout the City. The Big Read Library Grant Fund - In April of 2007, the City received a grant from the National Endowment for the Arts to participate in a program called "The Big Read". The program, which included a $20,000 cash grant from the NEA, would promote a community wide read of the book "To Kill a Mockingbird". The program, emphasizing a city wide media campaign featured guest lectures, group discussions, film showings, and a community theater performance of the book. Drink, Drive, Lose Grant Fund - This grant was awarded by the State of California Office of Traffic Safety to provide supplementary funding for overtime costs incurred during sobriety checkpoints. The overall goal of the project is to reduce the number of victims killed and injured as a result of alcohol-involved crashes. Department of Homeland Security Grant Fund - This grant from the State Homeland Security Grant Program is administered by the San Bernardino County Office of Emergency Services. The grant is funded by the Federal Department of Homeland Security. The funds will be utilized to purchase terrorism and weapons of mass destruction (WMDs) response equipment and supplies in conjunction with an appropriate level of training cost funding for national security. There are no matching funds required for this grant. Public Resource Grants Fund - The City had received and will continue to receive from various funding sources for the Healthy Cities concept, which was adopted by the Council in March 2008, as a means of integrating health concerns into a holistic approach to improving the overall quality of life in the community." Proposition 1 B Fund - Proposition 1 B (Prop 1 B) provides state funding to cities and counties to fund the maintenance and improvement of local transportation facilities. The funding is allocated based on population. Henderson/Wardman Drainage Fund -The Henderson/Wardman Drainage fund is a developer impact fee supported fund for the construction of storm drain improvements in the Henderson/Wardman drainage area. Integrated Waste Management Fund — Established to account for AB939 recycling fee revenues from the City's refuse haulers and can only be used for the City's Household Hazardous Waste Disposal program. Assembly Bill 939 is a law that was passed by the State of California that mandates that all cities divert a specified percentage of their solid waste from their landfills in accordance with established deadlines. 78 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Federal Grant Fund — Dreier - Initially, this fund was established to account for a $50,000 grant from Congressman David Dreier. The funds were used to begin the preliminary design process for a new senior center facility in Central Park. During FY 2003/04, the grant was supplemented with an additional $804,000 from Congressman Dreier which will be used in conjunction with other funds to construct the new senior center facility in Central Park. Proposition 42 - Traffic Congestion Relief Fund - This fund was established to account for gasoline sales tax revenue received from the State of California for transportation purposes, including city and county street and road repairs and maintenance. Proposition 42, a legislative constitutional amendment, permanently dedicated revenues from this sales tax on gasoline to transportation infrastructure needs. Justice Assistance Grant Fund - Two Justice Assistance Grants (JAG) were awarded to the Police Department by the United States Department of Justice. The first was in 2005 in the amount of $30,833.00 to purchase police related equipment and technology. The second JAG grant was awarded in 2006 in the amount of $19,514.00. This grant will be used to purchase 14 radar guns for the Police Department's traffic division. This fund accounts for the revenues and expenditures associated with the JAG grants. OTS 2005 State Seatbelt Grant Fund - This fund was established to account for the revenues and expenditures associated with the State of California's Office of Traffic Safety (OTS) Seat Belt Compliance Campaign grant. The grant provided funding for overtime for the Police Department to conduct a twenty- one day seat belt enforcement operation. Senior Transportation Service Fund - Through funding from the County of San Bernardino/Department of Aging and Adult Services, the Senior Transportation Program provides funding for the continuation/enhancement of senior transportation services to homebound senior citizens in the community. Specifically, the program will bring homebound seniors to the James L. Brulte Senior Center (the Center) for the hot lunch program and will allow senior citizens to participate in classes, programs, and other activities at the Center that they may not have been able to participate in due to transportation needs. Funding provided by the County allows for the continuation of our current program, an expansion of services, or the purchase of vehicles, depending upon City needs. Homeland Security Grant 2005 Fund - The City was awarded a $147,776 grant from the State Homeland Security Grant Program administered by the San Bernardino County Office of Emergency Services. The grant is funded by the Federal Department of Homeland Security. The funds will be utilized to purchase terrorism and weapons of mass destruction (WMD's) response equipment and supplies in conjunction with an appropriate level of training costs funding for national security. There are no matching funds required for this grant. Bicycle Transportation Account Grant Fund - The State Bicycle Transportation Account Grant program established an annual funding source for bicycle projects throughout the state of California. This State money only recurs if an entity reapplies for the funds. The City is using these grant funds to construct the Pacific Electric Trail. 79 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Capital Projects Funds Assessment District 82-1 Fund - Established to account for the receipt and disbursement of funds used in the construction of streets, storm drainage and utility improvements within the project area. Financing was provided by the sale of bonds under the Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessment District 84-1 Fund - Established to account for the receipt and disbursement of funds used in the construction and installation of public capital drainage facilities, together with appurtenant work and incidental expenses, to serve and provide drainage protection to property located within Assessment District No. 84-1 (Day Creek Drainage System). Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Assessment District 84-2 Fund - Established to account for the receipt and disbursement of funds used in the construction of certain public works of improvement, together with appurtenances and appurtenant work, including acquisition where appropriate, in Special Assessment District No. 84-2 (Alta Loma Channel Improvement). Financing was provided by sale of bonds under the 1915 Improvement Act Bonds. Assessment District 86-2 Fund - Established to account for the receipt and disbursement of funds used in construction and acquisition of drainage improvements together with appurtenances and appurtenant work, acquisition of real property, if necessary, and incidental expenses within the Assessment District No. 86-2. Financing was provided by the sale of limited obligation bonds under the Improvement Bond Act of 1915. Community Facilities District 2000-01 South Etiwanda Fund — Established to account for the receipt and disbursement of funds used in the acquisition and construction of facilities consisting primarily of storm drain, sewer, water, landscaping, park facilities and improvements. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2000-02 Rancho Cucamonga Corporate Park Fund - Established to account for the receipt and disbursement of funds used in the acquisition and construction of facilities consisting primarily of improvements to Milliken Avenue, Arrow Route, and Foothill Boulevard, and water and sewer improvements to be acquired and operated by Cucamonga County Water District. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2000-03 Rancho Summit Fund — Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2001-01 Fund - This CFD was established to fund the necessary infrastructure (streets, storm drains, sewer, water, landscaping, and traffic signals) integral to the proposed mall located at Foothill Blvd. and the 1-15 Freeway. The improvements are located south of Base Line Rd., primarily north of Foothill Blvd., primarily east of Day Creek Channel, and west of Etiwanda Ave. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities 2003-01 Project Fund — This CFD was established to fund the necessary infrastructure (streets, storm drains, sewer, water, landscaping, and traffic signals) integral to the proposed mall located at Foothill Blvd. and the 1-15 Freeway. The improvements are generally bordered on the north by Church Street, on the east by Interstate 15, on the south by Arrow Route and on the west by a Southern California Edison easement from Arrow Route north to Foothill Boulevard and by Day Creek Boulevard from Foothill Boulevard north to Church Street. Financing will be provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. 80 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Capital Projects Funds (Continued) Public Library Bond Act 2000 Fund — This grant is from funds made available by the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the construction of the Victoria Gardens Library. Community Facilities District 2004-01 Rancho Etiwanda Fund — Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to the proposed public financing district. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2003-01 Cultural Center Fund - Established to account for the portion of the costs associated with the development of the City's Cultural Arts Center that is being funded by Community Facilities District (CFD) 2003-01. Financing for the CFD will be provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2006-01 Vintner's Grove Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006-02 Amador on Route 66 Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. 81 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Park Gas Tax SB 325 Recreation Development Assets: Cash and investments $ 1,999,762 $ - $ 2,262,144 $ 11,958,764 Receivables: Accounts 263,215 - 48,468 - Taxes - - - - Accrued interest 1,839 - 2,190 12,668 Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,264,816 $ - $ 2,312,802 $ 11,971,432 Liabilities and Fund Balances: Liabilities: Accounts payable $ 106,966 $ - $ 349,332 $ 150,759 Accrued liabilities 84,744 - 157,140 6,451 Deferred revenues - - - - Unearned revenues - - 26,834 - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - 300,000 Total Liabilities 191,710 - 533,306 457,210 Fund Balances: Reserved: Reserved for encumbrances 4,650 - - 25,122 Unreserved: Designated for capital projects - - - 561,800 Designated for vehicle and equipment replacement 1,103,265 - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 27,401 - 30,947 163,866 Undesignated 937,790 - 1,748,549 10,763,434 Total Fund Balances 2,073,106 - 1,779,496 11,514,222 Total Liabilities and Fund Balances $ 2,264,816 $ - $ 2,312,802 $ 11,971,432 82 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Special Revenue Funds Landscape Lighting Maintenance Beautification Districts Districts Transportation Assets: Cash and investments $ 1,343,679 $ 6,838,105 $ 11,630,088 $ 19,265,359 Receivables: Accounts - - 3,690 - Taxes - 36,575 170,311 - Accrued interest 1,427 7,157 12,352 20,089 Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,345,106 $ 6,881,837 $ 11,816,441 $ 19,285,448 Liabilities and Fund Balances: Liabilities: Accounts payable $ 43,913 $ 305,398 $ 598,882 $ 185,070 Accrued liabilities 1,774 - 151,932 21,779 Deferred revenues - - - - Unearned revenues 93,407 - - - Due to other governments - - - - Due to other funds - 134,935 - - Advances from other funds - - - - Total Liabilities 139,094 440,333 750,814 206,849 Fund Balances: Reserved: Reserved for encumbrances 36,481 8,843 590 869,461 Unreserved: Designated for capital projects 817,940 - - 4,400,000 Designated for vehicle and equipment replacement - - - - Designated for working capital - 1,294,510 5,117,374 - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 18,504 93,699 159,362 263,985 Undesignated 333,087 5,044,452 5,788,301 13,545,153 Total Fund Balances 1,206,012 6,441,504 11,065,627 19,078,599 Total Liabilities and Fund Balances $ 1,345,106 $ 6,881,837 $ 11,816,441 $ 19,285,448 83 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Transportation Community Pedestrian Enhancement Development Assessment Grant Act Block Grant Administration Assets: Cash and investments $ - $ - $ - $ 1,163,500 Receivables: Accounts - - - 38 Taxes - - - - Accrued interest - - - 1,206 Deferred loans - - 443,049 - Grants 1,417,021 - 481,919 - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,417,021 $ - $ 924,968 $ 1,164,744 Liabilities and Fund Balances: Liabilities: Accounts payable $ 131,550 $ - $ 297,358 $ 4,583 Accrued liabilities - - 14,552 26,802 Deferred revenues 1,417,021 - 481,919 - Unearned revenues - - - - Due to other governments - - 443,049 - Due to other funds 1,285,471 - 171,852 - Advances from other funds - - - - Total Liabilities 2,834,042 - 1,408,730 31,385 Fund Balances: Reserved: Reserved for encumbrances - - 279,269 - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments - - - 15,943 Undesignated (1,417,021) - (763,031) 1,117,416 Total Fund Balances (1,417,021) - (483,762) 1,133,359 Total Liabilities and Fund Balances $ 1,417,021 $ - $ 924,968 $ 1,164,744 84 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Special Revenue Funds San Sevaine/ South Etiwanda Air Quality Etiwanda Drainage SB 140 Improvement Drainage Assets: Cash and investments $ 1,031,558 $ 37,200 $ 621,994 $ 158,737 Receivables: Accounts - - - - Taxes - - - - Accrued interest 1,079 - 659 166 Deferred loans - - - - Grants - - 54,045 - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,032,637 $ 37,200 $ 676,698 $ 158,903 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 5,665 $ - Accrued liabilities - - 1,397 - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 7,062 - Fund Balances: Reserved: Reserved for encumbrances - - 121,068 - Unreserved: Designated for capital projects 495,000 - 60,000 35,000 Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 14,135 510 8,523 2,175 Undesignated 523,502 36,690 480,045 121,728 Total Fund Balances 1,032,637 37,200 669,636 158,903 Total Liabilities and Fund Balances $ 1,032,637 $ 37,200 $ 676,698 $ 158,903 85 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Lower Masi Etiwanda Commerce Library Drainage Center Measure I Services Assets: Cash and investments $ 542,925 $ 8,756 $ 4,715,905 $ 6,616,152 Receivables: Accounts - - 170,478 26,317 Taxes - - - 75,068 Accrued interest 570 9 5,067 6,179 Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - 290,221 - - Total Assets $ 543,495 $ 298,986 $ 4,891,450 $ 6,723,716 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 703,140 $ 69,085 Accrued liabilities - - 12,886 120,526 Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 716,026 189,611 Fund Balances: Reserved: Reserved for encumbrances 32,275 - 249,756 608 Unreserved: Designated for capital projects - - 1,659,000 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - 224,470 Designated for C&D waste programs - - - - Designated for unrealized gain on investments 7,439 120 64,620 90,651 Undesignated 503,781 298,866 2,202,048 6,218,376 Total Fund Balances 543,495 298,986 4,175,424 6,534,105 Total Liabilities and Fund Balances $ 543,495 $ 298,986 $ 4,891,450 $ 6,723,716 86 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Special Revenue Funds California Used Oil Literacy Asset Recycling COPS Program Forfeiture Grant Program Grant Assets: Cash and investments $ - $ 675,002 $ - $ 47,397 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 162 - - Deferred loans - - - - Grants 8,849 - 9,125 85,450 Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 8,849 $ 675,164 $ 9,125 $ 132,847 Liabilities and Fund Balances: Liabilities: Accounts payable $ 16 $ - $ 2,338 $ - Accrued liabilities 4,702 - 1,091 - Deferred revenues 8,849 - 9,125 - Unearned revenues - - - - Due to other governments - - - - Due to other funds 4,142 - 5,696 - Advances from other funds - - - - Total Liabilities 17,709 - 18,250 - Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments - 9,249 - 649 Undesignated (8,860) 665,915 (9,125) 132,198 Total Fund Balances (8,860) 675,164 (9,125) 132,847 Total Liabilities and Fund Balances $ 8,849 $ 675,164 $ 9,125 $ 132,847 87 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Teen Connection COPS in Drainage CA State Program Grant School Grant Facilities Library Assets: Cash and investments $ - $ - $ 5,697,238 $ 4,145 Receivables: Accounts - - 150 - Taxes - - - - Accrued interest - - 5,989 - Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ - $ - $ 5,703,377 $ 4,145 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 193,389 $ 577 Accrued liabilities - - 5,041 312 Deferred revenues - - - - Unearned revenues - - 5,102 3,256 Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 203,532 4,145 Fund Balances: Reserved: Reserved for encumbrances - - 156,943 - Unreserved: Designated for capital projects - - 40,000 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments - - 78,066 - Undesignated - - 5,224,836 - Total Fund Balances - - 5,499,845 - Total Liabilities and Fund Balances $ - $ - $ 5,703,377 $ 4,145 88 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Special Revenue Funds Library Energy Services& Litter Efficient& Senior Technologies Reduction Conservation Outreach Act Grant Block Grant Grant Assets: Cash and investments $ 26,034 $ 2,061 $ - $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - - Grants 4,500 21,635 63,572 800 Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 30,534 $ 23,696 $ 63,572 $ 800 Liabilities and Fund Balances: Liabilities: Accounts payable $ 4,494 $ - $ 62,389 $ - Accrued liabilities - - 1,128 - Deferred revenues 4,500 - 63,572 - Unearned revenues - 23,696 - - Due to other governments - - - - Due to other funds - - 55 800 Advances from other funds - - - - Total Liabilities 8,994 23,696 127,144 800 Fund Balances: Reserved: Reserved for encumbrances 180 - 154,480 - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 357 - - - Undesignated 21,003 - (218,052) - Total Fund Balances 21,540 - (63,572) - Total Liabilities and Fund Balances $ 30,534 $ 23,696 $ 63,572 $ 800 89 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Safe Routes to Citywide Undergound School Foothill Blvd. Infrastructure Utilities Program Maintenance Improvement Assets: Cash and investments $ 10,100,974 $ - $ 162,371 $ 2,459,466 Receivables: Accounts - - - 14,001,000 Taxes - - - - Accrued interest 89 - - 2,571 Deferred loans - - - - Grants - 12 - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 10,101,063 $ 12 $ 162,371 $ 16,463,037 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - 1,306 - Deferred revenues - 12 - 13,856,000 Unearned revenues - - - - Due to other governments - - - - Due to other funds - 12 - - Advances from other funds - - - - Total Liabilities - 24 1,306 13,856,000 Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects 1,273,930 - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 1,331 - 2,225 33,701 Undesignated 8,825,802 (12) 158,840 2,573,336 Total Fund Balances 10,101,063 (12) 161,065 2,607,037 Total Liabilities and Fund Balances $ 10,101,063 $ 12 $ 162,371 $ 16,463,037 90 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Special Revenue Funds Department of Public The Big Read Drink, Drive, Homeland Resource Library Grant Lose Grant Security Grant Grants Assets: Cash and investments $ 9,496 $ 15,564 $ - $ 55,602 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - - Grants - - 45,453 - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 9,496 $ 15,564 $ 45,453 $ 55,602 Liabilities and Fund Balances: Liabilities: Accounts payable $ 80 $ - $ 5,254 $ 2,498 Accrued liabilities - - - 942 Deferred revenues - - 19,192 - Unearned revenues - 13,574 - - Due to other governments - - - - Due to other funds - - 40,199 - Advances from other funds - - - - Total Liabilities 80 13,574 64,645 3,440 Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 130 213 - 762 Undesignated 9,286 1,777 (19,192) 51,400 Total Fund Balances 9,416 1,990 (19,192) 52,162 Total Liabilities and Fund Balances $ 9,496 $ 15,564 $ 45,453 $ 55,602 91 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Henderson/ Integrated Proposition Wardman Waste Federal Grant 113 Drainage Management Fund -Dreier Assets: Cash and investments $ 440,617 $ 819,290 $ 3,654,944 $ 13,733 Receivables: Accounts - - - - Taxes - - 238,580 - Accrued interest 788 - 3,822 - Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 441,405 $ 819,290 $ 3,897,346 $ 13,733 Liabilities and Fund Balances: Liabilities: Accounts payable $ 13,977 $ - $ 3,127 $ 13,545 Accrued liabilities - - 31,092 - Deferred revenues - - - - Unearned revenues 200,111 - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 214,088 - 34,219 13,545 Fund Balances: Reserved: Reserved for encumbrances 9,626 - 6,553 - Unreserved: Designated for capital projects - - 2,325,000 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - 77,694 - Designated for unrealized gain on investments 6,038 11,226 49,959 188 Undesignated 211,653 808,064 1,403,921 - Total Fund Balances 227,317 819,290 3,863,127 188 Total Liabilities and Fund Balances $ 441,405 $ 819,290 $ 3,897,346 $ 13,733 92 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Special Revenue Funds Proposition 42 -Traffic Justice OTS 2005 Senior Congestion Assistance State Seatbelt Transportation Relief Grant Grant Service Assets: Cash and investments $ 2,140,875 $ 178,923 $ - $ 27,155 Receivables: Accounts 448,031 - - - Taxes - - - - Accrued interest 2,215 - - 34 Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,591,121 $ 178,923 $ - $ 27,189 Liabilities and Fund Balances: Liabilities: Accounts payable $ 106,000 $ - $ - $ 20,565 Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - 176,475 - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 106,000 176,475 - 20,565 Fund Balances: Reserved: Reserved for encumbrances 12,388 11,497 - - Unreserved: Designated for capital projects 680,000 - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 29,336 - - 372 Undesignated 1,763,397 (9,049) - 6,252 Total Fund Balances 2,485,121 2,448 - 6,624 Total Liabilities and Fund Balances $ 2,591,121 $ 178,923 $ - $ 27,189 93 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Special Revenue Funds Capital Projects Fund Homeland Bicycle Security Grant Transportation Assessment Assessment 2005 Acct. Grant District 82-1 District 84-1 Assets: Cash and investments $ - $ - $ 12,335 $ 1,052,621 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 13 1,101 Deferred loans - - - - Grants 25,410 - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 25,410 $ - $ 12,348 $ 1,053,722 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues 25,410 - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds 25,410 - - - Advances from other funds - - - - Total Liabilities 50,820 - - - Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments - - 169 14,424 Undesignated (25,410) - 12,179 1,039,298 Total Fund Balances (25,410) - 12,348 1,053,722 Total Liabilities and Fund Balances $ 25,410 $ - $ 12,348 $ 1,053,722 94 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Capital Project Funds CFD 2000-02 CFD 2000-01 Rancho Assessment Assessment South Cucamonga District 84-2 District 86-2 Etiwanda Corporate Park Assets: Cash and investments $ - $ - $ 64 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - 91,945 581,333 Total Assets $ - $ - $ 92,009 $ 581,333 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - 41,128 - - Advances from other funds - - - - Total Liabilities - 41,128 - - Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments - - - - Undesignated - (41,128) 92,009 581,333 Total Fund Balances - (41,128) 92,009 581,333 Total Liabilities and Fund Balances $ - $ - $ 92,009 $ 581,333 95 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Capital Projects Funds CFD 2000-03 Public Library Rancho CFD 2003-01 Bond Act- Summit CFD 2001-01 Project Fund 2000 Assets: Cash and investments $ 19,352 $ 464,258 $ 5,659 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - 486 - - Deferred loans - - - - Grants - - - 1,498,042 Due from other funds - - - 244,994 Restricted assets: Cash and investments with fiscal agents 143,849 18,130 169,260 - Total Assets $ 163,201 $ 482,874 $ 174,919 $ 1,743,036 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 26,019 $ 6,128 Accrued liabilities - - - - Deferred revenues - - - 1,498,042 Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - 1,736,908 Advances from other funds - 2,560,408 1,393,216 - Total Liabilities - 2,560,408 1,419,235 3,241,078 Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects - - - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 265 - - - Undesignated 162,936 (2,077,534) (1,244,316) (1,498,042) Total Fund Balances 163,201 (2,077,534) (1,244,316) (1,498,042) Total Liabilities and Fund Balances $ 163,201 $ 482,874 $ 174,919 $ 1,743,036 96 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 (Continued) Capital Projects Funds CFD 2004-01 CFD 2006-01 CFD 2006-02 Rancho CFD 2003-01 Vintner's Amador on Etiwanda Cultural Center Grove Route 66 Assets: Cash and investments $ 4,802 $ - $ 1,794 $ 5,706 Receivables: Accounts - - - - Taxes - - - - Accrued interest 5 - 2 6 Deferred loans - - - - Grants - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents 1,088,789 221,423 969,253 1,963 Total Assets $ 1,093,596 $ 221,423 $ 971,049 $ 7,675 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - 35,367 - - Advances from other funds - - - - Total Liabilities - 35,367 - - Fund Balances: Reserved: Reserved for encumbrances - - - - Unreserved: Designated for capital projects 1,058,470 175,000 800,060 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 66 - 25 78 Undesignated 35,060 11,056 170,964 7,597 Total Fund Balances 1,093,596 186,056 971,049 7,675 Total Liabilities and Fund Balances $ 1,093,596 $ 221,423 $ 971,049 $ 7,675 97 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2010 Total Nonmajor Governmental Funds Assets: Cash and investments $ 98,292,106 Receivables: Accounts 14,961,387 Taxes 520,534 Accrued interest 89,940 Deferred loans 443,049 Grants 3,715,833 Due from other funds 244,994 Restricted assets: Cash and investments with fiscal agents 3,576,166 Total Assets $ 121,844,009 Liabilities and Fund Balances: Liabilities: Accounts payable $ 3,412,097 Accrued liabilities 645,597 Deferred revenues 17,383,642 Unearned revenues 542,455 Due to other governments 443,049 Due to other funds 3,481,975 Advances from other funds 4,253,624 Total Liabilities 30,162,439 Fund Balances: Reserved: Reserved for encumbrances 1,979,790 Unreserved: Designated for capital projects 14,381,200 Designated for vehicle and equipment replacement 1,103,265 Designated for working capital 6,636,354 Designated for C&D waste programs 77,694 Designated for unrealized gain on investments 1,200,709 Undesignated 66,302,558 Total Fund Balances 91,681,570 Total Liabilities and Fund Balances $ 121,844,009 98 THIS PAGE INTENTIONALLY LEFT BLANK 99 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Park Gas Tax SB 325 Recreation Development Revenues: Taxes $ - $ - $ - $ - Intergovernmental 2,874,450 - - - Charges for services - - 2,749,414 - Use of money and property 31,090 (5) 945,265 316,020 Contributions - - 430,541 - Developer participation - - - 1,098,774 Miscellaneous 2,276 - 139,746 - Total Revenues 2,907,816 (5) 4,264,966 1,414,794 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - 251,453 Community services - - 4,393,030 - Engineering and public works 2,651,697 - - - Capital outlay - - - 748,440 Debt service: Principal retirement 18,393 - - - Interest and fiscal charges 2,084 - - - Total Expenditures 2,672,174 - 4,393,030 999,893 Excess (Deficiency)of Revenues Over(Under) Expenditures 235,642 (5) (128,064) 414,901 Other Financing Sources (Uses): Transfers in 3,480 - - - Transfers out - (104) - - Total Other Financing Sources (Uses) 3,480 (104) - - Net Change in Fund Balances 239,122 (109) (128,064) 414,901 Fund Balances Beginning of year 1,833,984 109 1,907,560 11,099,321 End of Year $ 2,073,106 $ - $ 1,779,496 $ 11,514,222 100 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Special Revenue Funds Landscape Lighting Maintenance Beautification Districts Districts Transportation Revenues: Taxes $ - $ 2,353,062 $ 9,431,725 $ - Intergovernmental - - - 157,471 Charges for services - - - - Use of money and property 37,810 172,267 304,184 501,086 Contributions - - - - Developer participation 183,182 986 - 2,073,810 Miscellaneous - - 9,577 - Total Revenues 220,992 2,526,315 9,745,486 2,732,367 Expenditures: Current: General government - 2,408,966 - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 9,465,985 - Community services - - - - Engineering and public works 48,368 - - 1,870,327 Capital outlay 483,036 163,817 71,833 1,009,743 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 531,404 2,572,783 9,537,818 2,880,070 Excess(Deficiency)of Revenues Over(Under) Expenditures (310,412) (46,468) 207,668 (147,703) Other Financing Sources(Uses): Transfers in - - 17,200 - Transfers out - - (3,480) - Total Other Financing Sources (Uses) - - 13,720 - Net Change in Fund Balances (310,412) (46,468) 221,388 (147,703) Fund Balances Beginning of year 1,516,424 6,487,972 10,844,239 19,226,302 End of Year $ 1,206,012 $ 6,441,504 $ 11,065,627 $ 19,078,599 101 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Transportation Community Pedestrian Enhancement Development Assessment Grant Act Block Grant Administration Revenues: Taxes $ - $ - $ - $ - Intergovernmental 53,040 - 1,449,262 - Charges for services - - - - Use of money and property - - - 29,081 Contributions - - - - Developer participation - - - - Miscellaneous - - 100 871,056 Total Revenues 53,040 - 1,449,362 900,137 Expenditures: Current: General government - - - 819,707 Public safety-police - - - - Public safety-fire protection - - - - Community development - - 1,462,854 - Community services - - - - Engineering and public works - - - - Capital outlay 1,371,274 - 272,025 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,371,274 - 1,734,879 819,707 Excess(Deficiency)of Revenues Over(Under) Expenditures (1,318,234) - (285,517) 80,430 Other Financing Sources(Uses): Transfers in - 530,912 - 80 Transfers out - - - - Total Other Financing Sources (Uses) - 530,912 - 80 Net Change in Fund Balances (1,318,234) 530,912 (285,517) 80,510 Fund Balances Beginning of year (98,787) (530,912) (198,245) 1,052,849 End of Year $ (1,417,021) $ - $ (483,762) $ 1,133,359 102 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Special Revenue Funds San Sevaine/ South Etiwanda Air Quality Etiwanda Drainage SB 140 Improvement Drainage Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - 413,325 - Charges for services - - - - Use of money and property 26,885 196 15,352 4,670 Contributions - - - - Developer participation 24,149 - - 135,855 Miscellaneous - - - - Total Revenues 51,034 196 428,677 140,525 Expenditures: Current: General government - - 138,896 - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 137,181 - - - Capital outlay - - 44,309 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 137,181 - 183,205 - Excess(Deficiency)of Revenues Over(Under) Expenditures (86,147) 196 245,472 140,525 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (86,147) 196 245,472 140,525 Fund Balances Beginning of year 1,118,784 37,004 424,164 18,378 End of Year $ 1,032,637 $ 37,200 $ 669,636 $ 158,903 103 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Lower Masi Etiwanda Commerce Library Drainage Center Measure I Services Revenues: Taxes $ - $ - $ - $ 3,323,105 Intergovernmental - - 1,910,148 12,500 Charges for services - - - 374,236 Use of money and property 16,131 326 124,545 156,965 Contributions - - - 147,952 Developer participation - - - - Miscellaneous - - - 114,513 Total Revenues 16,131 326 2,034,693 4,129,271 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - 3,498,527 Engineering and public works - - 1,834,356 - Capital outlay 52,975 - 397,371 8,000 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 52,975 - 2,231,727 3,506,527 Excess(Deficiency)of Revenues Over(Under) Expenditures (36,844) 326 (197,034) 622,744 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - (89,240) Total Other Financing Sources (Uses) - - - (89,240) Net Change in Fund Balances (36,844) 326 (197,034) 533,504 Fund Balances Beginning of year 580,339 298,660 4,372,458 6,000,601 End of Year $ 543,495 $ 298,986 $ 4,175,424 $ 6,534,105 104 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Special Revenue Funds California Used Oil Literacy Asset Recycling COPS Program Forfeiture Grant Program Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental 29,447 74,287 12,469 176,595 Charges for services - - - - Use of money and property - 7,104 (46) (799) Contributions 15,000 - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 44,447 81,391 12,423 175,796 Expenditures: Current: General government - - - - Public safety-police - - - 113,947 Public safety-fire protection - - - - Community development - - - - Community services 99,302 - - - Engineering and public works - - 21,595 - Capital outlay - 43,732 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 99,302 43,732 21,595 113,947 Excess(Deficiency)of Revenues Over(Under) Expenditures (54,855) 37,659 (9,172) 61,849 Other Financing Sources(Uses): Transfers in 89,240 - - - Transfers out - - - (45,847) Total Other Financing Sources (Uses) 89,240 - - (45,847) Net Change in Fund Balances 34,385 37,659 (9,172) 16,002 Fund Balances Beginning of year (43,245) 637,505 47 116,845 End of Year $ (8,860) $ 675,164 $ (9,125) $ 132,847 105 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Teen Connection COPS in Drainage CA State Program Grant School Grant Facilities Library Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - 21,744 Charges for services - - - - Use of money and property (427) - 150,240 57 Contributions - - - - Developer participation - - 409,170 - Miscellaneous - - 150 - Total Revenues (427) - 559,560 21,801 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - 15,101 Engineering and public works - - 732,605 - Capital outlay - - 484,097 6,700 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - 1,216,702 21,801 Excess(Deficiency)of Revenues Over(Under) Expenditures (427) - (657,142) - Other Financing Sources(Uses): Transfers in - 45,837 - - Transfers out - - - - Total Other Financing Sources (Uses) - 45,837 - - Net Change in Fund Balances (427) 45,837 (657,142) - Fund Balances Beginning of year 427 (45,837) 6,156,987 - End of Year $ - $ - $ 5,499,845 $ - 106 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Special Revenue Funds Library Energy Services& Litter Efficient& Technologies Reduction Conservation Senior Act Grant Block Grant Outreach Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental 45,500 20,608 195,810 7,025 Charges for services - - - - Use of money and property 62 (119) - - Contributions 45,000 - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 90,562 20,489 195,810 7,025 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 193,862 - Community services 83,698 - - 7,025 Engineering and public works - 20,636 - - Capital outlay - - 65,520 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 83,698 20,636 259,382 7,025 Excess(Deficiency)of Revenues Over(Under) Expenditures 6,864 (147) (63,572) - Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 6,864 (147) (63,572) - Fund Balances Beginning of year 14,676 147 - - End of Year $ 21,540 $ - $ (63,572) $ - 107 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Safe Routes to Citywide Undergound School Foothill Blvd. Infrastructure Utilities Program Maintenance Improvement Revenues: Taxes $ - $ - $ - $ - Intergovernmental - 78,968 - 2,558,250 Charges for services - - - - Use of money and property 13,650 - 222 48,787 Contributions - - - - Developer participation - - - - Miscellaneous 10,087,413 - - - Total Revenues 10,101,063 78,968 222 2,607,037 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - 60,932 - Capital outlay - 78,980 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 78,980 60,932 - Excess(Deficiency)of Revenues Over(Under) Expenditures 10,101,063 (12) (60,710) 2,607,037 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 10,101,063 (12) (60,710) 2,607,037 Fund Balances Beginning of year - - 221,775 - End of Year $ 10,101,063 $ (12) $ 161,065 $ 2,607,037 108 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Special Revenue Funds Department of Public The Big Read Drink, Drive, Homeland Resource Library Grant Lose Grant Security Grant Grants Revenues: Taxes $ - $ - $ - $ - Intergovernmental 37,645 1,777 129,281 - Charges for services - - - - Use of money and property 29 113 - 655 Contributions - - - 67,315 Developer participation - - - - Miscellaneous - - - 585 Total Revenues 37,674 1,890 129,281 68,555 Expenditures: Current: General government - - - 16,500 Public safety-police - - - - Public safety-fire protection - - 77,613 - Community development - - - - Community services 38,358 - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 38,358 - 77,613 16,500 Excess(Deficiency)of Revenues Over(Under) Expenditures (684) 1,890 51,668 52,055 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (684) 1,890 51,668 52,055 Fund Balances Beginning of year 10,100 100 (70,860) 107 End of Year $ 9,416 $ 1,990 $ (19,19?1 52,162 109 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Henderson/ Integrated Proposition Wardman Waste Federal Grant 113 Drainage Management Fund -Dreier Revenues: Taxes $ - $ - $ - $ - Intergovernmental 2,620,561 - - - Charges for services - - 1,060,099 - Use of money and property (4,638) 4,305 92,702 72 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 2,615,923 4,305 1,152,801 72 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development 2,620,561 - - - Community services - - - - Engineering and public works - - 898,359 - Capital outlay - - 38,338 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,620,561 - 936,697 - Excess(Deficiency)of Revenues Over(Under) Expenditures (4,638) 4,305 216,104 72 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (4,638) 4,305 216,104 72 Fund Balances Beginning of year 231,955 814,985 3,647,023 116 End of Year $ 227,317 $ 819,290 $ 3,863,127 $ 188 110 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Special Revenue Funds Proposition 42 -Traffic Justice OTS 2005 Senior Congestion Assistance State Seatbelt Transportation Relief Grant Grant Service Revenues: Taxes $ - $ - $ - $ - Intergovernmental 1,610,209 33,200 58,691 165,190 Charges for services - - - - Use of money and property 46,211 2,437 - 703 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 1,656,420 35,637 58,691 165,893 Expenditures: Current: General government - - - - Public safety-police - 23,925 7,493 - Public safety-fire protection - - - - Community development - - - - Community services - - - 160,433 Engineering and public works 302,347 - - - Capital outlay 106,000 9,276 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 408,347 33,201 7,493 160,433 Excess(Deficiency)of Revenues Over(Under) Expenditures 1,248,073 2,436 51,198 5,460 Other Financing Sources(Uses): Transfers in - - 10 - Transfers out - - - - Total Other Financing Sources (Uses) - - 10 - Net Change in Fund Balances 1,248,073 2,436 51,208 5,460 Fund Balances Beginning of year 1,237,048 12 (51,208) 1,164 End of Year $ 2,485,121 $ 2,448 $ - $ 6,624 111 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Special Revenue Funds Capital Projects Fund Homeland Bicycle Security Grant Transportation Assessment Assessment 2005 Acct. Grant District 82-1 District 84-1 Revenues: Taxes $ - $ - $ - $ - Intergovernmental - 25,200 - - Charges for services - - -Use of money and property - - 323 27,566 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues - 25,200 323 27,566 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - - - Excess(Deficiency)of Revenues Over(Under) Expenditures - 25,200 323 27,566 Other Financing Sources(Uses): Transfers in - 124 - - Transfers out - - - - Total Other Financing Sources (Uses) - 124 - - Net Change in Fund Balances - 25,324 323 27,566 Fund Balances Beginning of year (25,410) (25,324) 12,025 1,026,156 End of Year $ (25,410) $ - $ 12,348 $ 1,053,722 112 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Capital Projects Funds CFD 2000-02 CFD 2000-01 Rancho Assessment Assessment South Cucamonga District 84-2 District 86-2 Etiwanda Corporate Park Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - - - Use of money and property - - 11 59 Contributions - - - 22,730 Developer participation - - - - Miscellaneous 3,865 - - - Total Revenues 3,865 - 11 22,789 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - - - Excess(Deficiency)of Revenues Over(Under) Expenditures 3,865 - 11 22,789 Other Financing Sources(Uses): Transfers in - - - - Transfers out (80) - - - Total Other Financing Sources (Uses) (80) - - - Net Change in Fund Balances 3,785 - 11 22,789 Fund Balances Beginning of year (3,785) (41,128) 91,998 558,544 End of Year $ - $ (41,128) $ 92,009 $ 581,333 113 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Capital Projects Funds CFD 2000-03 Public Library Rancho CFD 2003-01 Bond Act- Summit CFD 2001-01 Project Fund 2000 Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - -Use of money and property 764 12,165 86 - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 764 12,165 86 - Expenditures: Current: General government 2,088,005 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,088,005 - - - Excess(Deficiency)of Revenues Over(Under) Expenditures (2,087,241) 12,165 86 - Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (2,087,241) 12,165 86 - Fund Balances Beginning of year 2,250,442 (2,089,699) (1,244,402) (1,498,042) End of Year $ 163,201 $ (2,077,534) $ (1,244,316) $ (1,498,042) 114 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 (Continued) Capital Projects Funds CFD 2004-01 CFD 2006-01 CFD 2006-02 Rancho CFD 2003-01 Vintner's Amador on Etiwanda Cultural Center Grove Route 66 Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - - - Use of money and property 210 72 297 150 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 210 72 297 150 Expenditures: Current: General government 35,466 - 2,007,865 9,111 Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - 17,529 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 35,466 17,529 2,007,865 9,111 Excess(Deficiency)of Revenues Over(Under) Expenditures (35,256) (17,457) (2,007,568) (8,961) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (35,256) (17,457) (2,007,568) (8,961) Fund Balances Beginning of year 1,128,852 203,513 2,978,617 16,636 End of Year $ 1,093,596 $ 186,056 $ 971,049 $ 7,675 115 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2010 Total Nonmajor Governmental Funds Revenues: Taxes $ 15,107,892 Intergovernmental 14,772,653 Charges for services 4,183,749 Use of money and property 3,084,891 Contributions 728,538 Developer participation 3,925,926 Miscellaneous 11,229,281 Total Revenues 53,032,930 Expenditures: Current: General government 7,524,516 Public safety-police 145,365 Public safety-fire protection 77,613 Community development 13,994,715 Community services 8,295,474 Engineering and public works 8,578,403 Capital outlay 5,472,995 Debt service: Principal retirement 18,393 Interest and fiscal charges 2,084 Total Expenditures 44,109,558 Excess(Deficiency)of Revenues Over(Under) Expenditures 8,923,372 Other Financing Sources(Uses): Transfers in 686,883 Transfers out (138,751) Total Other Financing Sources (Uses) 548,132 Net Change in Fund Balances 9,471,504 Fund Balances Beginning of year 82,210,066 End of Year $ 91,681,570 116 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GAS TAX FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,833,984 $ 1,833,984 $ 1,833,984 $ - Resources(Inflows): Intergovernmental 2,485,900 2,752,000 2,874,450 122,450 Use of money and property 35,920 22,040 31,090 9,050 Miscellaneous - - 2,276 2,276 Transfers in - 3,480 3,480 - Amounts Available for Appropriation 4,355,804 4,611,504 4,745,280 133,776 Charges to Appropriation (Outflow): Engineering and public works 2,628,150 2,800,400 2,656,347 144,053 Debt service: Principal retirement 18,393 18,393 18,393 - Interest and fiscal charges 2,087 2,087 2,084 3 Total Charges to Appropriations 2,648,630 2,820,880 2,676,824 144,056 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,707,174 $ 1,790,624 2,068,456 $ 277,832 Encumbrances 4,650 Budgetary Fund Balance,June 30(GAAP Basis) $ 2,073,106 117 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SB 325 FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 109 $ 109 $ 109 $ - Resources(Inflows): Use of money and property 190 10 (5) (15) Amounts Available for Appropriation 299 119 104 (15) Charges to Appropriation (Outflow): Transfers out - - 104 (104) Total Charges to Appropriations - - 104 (104) Budgetary Fund Balance,June 30(Budgetary Basis) $ 299 $ 119 - $ (119) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 118 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) RECREATION FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,907,560 $ 1,907,560 $ 1,907,560 $ - Resources(Inflows): Charges for services 2,997,030 2,830,180 2,749,414 (80,766) Use of money and property 881,600 917,510 945,265 27,755 Contributions 421,040 370,230 430,541 60,311 Miscellaneous 141,630 131,280 139,746 8,466 Amounts Available for Appropriation 6,348,860 6,156,760 6,172,526 15,766 Charges to Appropriation (Outflow): Community services 5,083,540 4,861,130 4,393,030 468,100 Total Charges to Appropriations 5,083,540 4,861,130 4,393,030 468,100 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,265,320 $ 1,295,630 1,779,496 $ 483,866 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,779,496 119 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PARK DEVELOPMENT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 11,099,321 $ 11,099,321 $ 11,099,321 $ - Resources(Inflows): Use of money and property 360,940 263,990 316,020 52,030 Developer participation 89,000 1,030,000 1,098,774 68,774 Amounts Available for Appropriation 11,549,261 12,393,311 12,514,115 120,804 Charges to Appropriation (Outflow): Community development 233,110 283,142 251,453 31,689 Capital outlay 677,200 855,258 773,562 81,696 Total Charges to Appropriations 910,310 1,138,400 1,025,015 113,385 Budgetary Fund Balance,June 30(Budgetary Basis) $ 10,638,951 $ 11,254,911 11,489,100 $ 234,189 Encumbrances 25,122 Budgetary Fund Balance,June 30(GAAP Basis) $ 11,514,222 120 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) BEAUTIFICATION FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,516,424 $ 1,516,424 $ 1,516,424 $ - Resources(Inflows): Intergovernmental - 1,000,000 - (1,000,000) Use of money and property 45,660 34,990 37,810 2,820 Developer participation 15,000 220,000 183,182 (36,818) Amounts Available for Appropriation 1,577,084 2,771,414 1,737,416 (1,033,998) Charges to Appropriation (Outflow): Engineering and public works 8,250 56,726 48,368 8,358 Capital outlay 406,840 566,524 519,517 47,007 Total Charges to Appropriations 415,090 623,250 567,885 55,365 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,161,994 $ 2,148,164 1,169,531 $ (978,633) Encumbrances 36,481 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,206,012 121 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIGHTING DISTRICTS FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,487,972 $ 6,487,972 $ 6,487,972 $ - Resources(Inflows): Taxes 2,114,410 2,227,700 2,353,062 125,362 Use of money and property 177,250 142,630 172,267 29,637 Developer participation 4,850 2,850 986 (1,864) Amounts Available for Appropriation 8,784,482 8,861,152 9,014,287 153,135 Charges to Appropriation (Outflow): General government 2,750,190 2,427,630 2,417,809 9,821 Capital outlay 240,000 200,000 163,817 36,183 Total Charges to Appropriations 2,990,190 2,627,630 2,581,626 46,004 Budgetary Fund Balance,June 30(Budgetary Basis) $ 5,794,292 $ 6,233,522 6,432,661 $ 199,139 Encumbrances 8,843 Budgetary Fund Balance,June 30(GAAP Basis) $ 6,441,504 122 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 10,844,239 $ 10,844,239 $ 10,844,239 $ - Resources (Inflows): Taxes 8,298,670 8,838,460 9,431,725 593,265 Use of money and property 236,710 235,510 304,184 68,674 Miscellaneous 16,100 19,790 9,577 (10,213) Transfers in - 28,180 17,200 (10,980) Amounts Available for Appropriation 19,395,719 19,966,179 20,606,925 640,746 Charges to Appropriation (Outflow): Community development 10,870,030 9,940,340 9,466,575 473,765 Capital outlay 61,000 72,240 71,833 407 Transfers out - 14,460 3,480 10,980 Total Charges to Appropriations 10,931,030 10,027,040 9,541,888 485,152 Budgetary Fund Balance,June 30(Budgetary Basis) $ 8,464,689 $ 9,939,139 11,065,037 $ 1,125,898 Encumbrances 590 Budgetary Fund Balance,June 30(GAAP Basis) $ 11,065,627 123 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) TRANSPORTATION FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 19,226,302 $ 19,226,302 $ 19,226,302 $ - Resources(Inflows): Intergovernmental - 225,000 157,471 (67,529) Use of money and property 472,700 428,570 501,086 72,516 Developer participation 1,215,000 1,811,000 2,073,810 262,810 Amounts Available for Appropriation 20,914,002 21,690,872 21,958,669 267,797 Charges to Appropriation (Outflow): Engineering and public works 1,463,330 2,170,793 1,969,949 200,844 Capital outlay 1,580,000 3,406,237 1,779,582 1,626,655 Total Charges to Appropriations 3,043,330 5,577,030 3,749,531 1,827,499 Budgetary Fund Balance,June 30(Budgetary Basis) $ 17,870,672 $ 16,113,842 18,209,138 $ 2,095,296 Encumbrances 869,461 Budgetary Fund Balance,June 30(GAAP Basis) $ 19,078,599 124 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PEDESTRIAN GRANT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (98,787) $ (98,787) $ (98,787) $ - Resources(Inflows): Intergovernmental 1,602,140 1,368,540 53,040 (1,315,500) Amounts Available for Appropriation 1,503,353 1,269,753 (45,747) (1,315,500) Charges to Appropriation (Outflow): Capital outlay 60,000 1,382,860 1,371,274 11,586 Total Charges to Appropriations 60,000 1,382,860 1,371,274 11,586 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,443,353 $ (113,107) (1,417,021) $ (1,303,914) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (1,417,021) 125 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (198,245) $ (198,245) $ (198,245) $ - Resources(Inflows): Intergovernmental 3,485,050 3,009,630 1,449,262 (1,560,368) Miscellaneous 90,000 90,000 100 (89,900) Amounts Available for Appropriation 3,376,805 2,901,385 1,251,117 (1,650,268) Charges to Appropriation (Outflow): Community development 349,010 1,389,111 1,462,854 (73,743) Capital outlay 3,226,040 1,710,519 551,294 1,159,225 Total Charges to Appropriations 3,575,050 3,099,630 2,014,148 1,085,482 Budgetary Fund Balance,June 30(Budgetary Basis) $ (198,245) $ (198,245) (763,031) $ (564,786) Encumbrances 279,269 Budgetary Fund Balance,June 30(GAAP Basis) $ (483,762) 126 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT ADMINISTRATION FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,052,849 $ 1,052,849 $ 1,052,849 $ - Resources(Inflows): Use of money and property 26,330 22,060 29,081 7,021 Miscellaneous 834,620 834,620 871,056 36,436 Transfers in - - 80 80 Amounts Available for Appropriation 1,913,799 1,909,529 1,953,066 43,537 Charges to Appropriation (Outflow): General government 905,690 885,660 819,707 65,953 Total Charges to Appropriations 905,690 885,660 819,707 65,953 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,008,109 $ 1,023,869 1,133,359 $ 109,490 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,133,359 127 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAN SEVAINE/ETIWANDA DRAINAGE FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,118,784 $ 1,118,784 $ 1,118,784 $ - Resources(Inflows): Use of money and property 19,120 24,490 26,885 2,395 Developer participation - 14,080 24,149 10,069 Amounts Available for Appropriation 1,137,904 1,157,354 1,169,818 12,464 Charges to Appropriation (Outflow): Engineering and public works - 137,190 137,181 9 Total Charges to Appropriations - 137,190 137,181 9 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,137,904 $ 1,020,164 1,032,637 $ 12,473 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,032,637 128 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) AIR QUALITY IMPROVEMENT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 424,164 $ 424,164 $ 424,164 $ - Resources(Inflows): Intergovernmental 203,320 203,320 413,325 210,005 Use of money and property 12,870 8,790 15,352 6,562 Amounts Available for Appropriation 640,354 636,274 852,841 216,567 Charges to Appropriation (Outflow): General government 182,820 142,331 140,396 1,935 Capital outlay 216,000 142,479 163,877 (21,398) Total Charges to Appropriations 398,820 284,810 304,273 (19,463) Budgetary Fund Balance,June 30(Budgetary Basis) $ 241,534 $ 351,464 548,568 $ 197,104 Encumbrances 121,068 Budgetary Fund Balance,June 30(GAAP Basis) $ 669,636 129 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SOUTH ETIWANDA DRAINAGE FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 18,378 $ 18,378 $ 18,378 $ - Resources(Inflows): Use of money and property 540 2,140 4,670 2,530 Developer participation - 135,850 135,855 5 Amounts Available for Appropriation 18,918 156,368 158,903 2,535 Budgetary Fund Balance,June 30(Budgetary Basis) $ 18,918 $ 156,368 158,903 $ 2,535 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 158,903 130 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 580,339 $ 580,339 $ 580,339 $ - Resources(Inflows): Use of money and property 16,510 15,470 16,131 661 Amounts Available for Appropriation 596,849 595,809 596,470 661 Charges to Appropriation (Outflow): Capital outlay 50,000 135,250 85,250 50,000 Total Charges to Appropriations 50,000 135,250 85,250 50,000 Budgetary Fund Balance,June 30(Budgetary Basis) $ 546,849 $ 460,559 511,220 $ 50,661 Encumbrances 32,275 Budgetary Fund Balance,June 30(GAAP Basis) $ 543,495 131 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MASI COMMERCE CENTER FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 298,660 $ 298,660 $ 298,660 $ - Resources(Inflows): Use of money and property 2,900 360 326 (34) Amounts Available for Appropriation 301,560 299,020 298,986 (34) Budgetary Fund Balance,June 30(Budgetary Basis) $ 301,560 $ 299,020 298,986 $ (34) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 298,986 132 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MEASUREI FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 4,372,458 $ 4,372,458 $ 4,372,458 $ - Resources(Inflows): Intergovernmental 2,139,200 1,926,170 1,910,148 (16,022) Use of money and property 145,000 99,670 124,545 24,875 Amounts Available for Appropriation 6,656,658 6,398,298 6,407,151 8,853 Charges to Appropriation (Outflow): Engineering and public works 1,254,370 1,859,480 1,849,831 9,649 Capital outlay 813,000 908,120 631,652 276,468 Total Charges to Appropriations 2,067,370 2,767,600 2,481,483 286,117 Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,589,288 $ 3,630,698 3,925,668 $ 294,970 Encumbrances 249,756 Budgetary Fund Balance,June 30(GAAP Basis) $ 4,175,424 133 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,000,601 $ 6,000,601 $ 6,000,601 $ - Resources(Inflows): Taxes 3,566,450 3,385,470 3,323,105 (62,365) Intergovernmental - 10,000 12,500 2,500 Charges for services 278,500 278,500 374,236 95,736 Use of money and property 125,060 108,840 156,965 48,125 Contributions 210,000 220,000 147,952 (72,048) Miscellaneous 60,000 60,000 114,513 54,513 Amounts Available for Appropriation 10,240,611 10,063,411 10,129,872 66,461 Charges to Appropriation (Outflow): Community services 4,194,590 4,123,270 3,499,135 624,135 Capital outlay - 8,000 8,000 - Transfers out 45,420 89,240 89,240 - Total Charges to Appropriations 4,240,010 4,220,510 3,596,375 624,135 Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,000,601 $ 5,842,901 6,533,497 $ 690,596 Encumbrances 608 Budgetary Fund Balance,June 30(GAAP Basis) $ 6,534,105 134 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CALIFORNIA LITERACY PROGRAM FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (43,245) $ (43,245) $ (43,245) $ - Resources(Inflows): Intergovernmental 36,400 36,400 29,447 (6,953) Contributions 15,000 15,000 15,000 - Transfers in 45,420 89,240 89,240 - Amounts Available for Appropriation 53,575 97,395 90,442 (6,953) Charges to Appropriation (Outflow): Community services 102,500 102,770 99,302 3,468 Total Charges to Appropriations 102,500 102,770 99,302 3,468 Budgetary Fund Balance,June 30(Budgetary Basis) $ (48,925) $ (5,375) (8,860) $ (3,485) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (8,860) 135 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSET FORFEITURE FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 637,505 $ 637,505 $ 637,505 $ - Resources(Inflows): Intergovernmental - - 74,287 74,287 Use of money and property - - 7,104 7,104 Amounts Available for Appropriation 637,505 637,505 718,896 81,391 Charges to Appropriation (Outflow): Capital outlay - 43,760 43,732 28 Total Charges to Appropriations - 43,760 43,732 28 Budgetary Fund Balance,June 30(Budgetary Basis) $ 637,505 $ 593,745 675,164 $ 81,419 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 675,164 136 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) USED OIL RECYCLING GRANT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 47 $ 47 $ 47 $ - Resources(Inflows): Intergovernmental 43,000 32,360 12,469 (19,891) Use of money and property - - (46) (46) Amounts Available for Appropriation 43,047 32,407 12,470 (19,937) Charges to Appropriation (Outflow): Engineering and public works 40,000 32,350 21,595 10,755 Total Charges to Appropriations 40,000 32,350 21,595 10,755 Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,047 $ 57 (9,125) $ (9,182) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (9,125) 137 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COPS PROGRAM GRANT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 116,845 $ 116,845 $ 116,845 $ - Resources(Inflows): Intergovernmental - 79,950 176,595 96,645 Use of money and property - - (799) (799) Amounts Available for Appropriation 116,845 196,795 292,641 95,846 Charges to Appropriation (Outflow): Public safety-police 122,000 122,000 113,947 8,053 Transfers out - - 45,847 (45,847) Total Charges to Appropriations 122,000 122,000 159,794 (37,794) Budgetary Fund Balance,June 30(Budgetary Basis) $ (5,155) $ 74,795 132,847 $ 58,052 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 132,847 138 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DRAINAGE FACILITIES FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,156,987 $ 6,156,987 $ 6,156,987 $ - Resources(Inflows): Use of money and property 176,970 138,400 150,240 11,840 Developer participation 682,000 380,000 409,170 29,170 Miscellaneous - - 150 150 Amounts Available for Appropriation 7,015,957 6,675,387 6,716,547 41,160 Charges to Appropriation (Outflow): Engineering and public works 295,860 735,854 732,605 3,249 Capital outlay 2,191,500 1,566,086 641,040 925,046 Total Charges to Appropriations 2,487,360 2,301,940 1,373,645 928,295 Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,528,597 $ 4,373,447 5,342,902 $ 969,455 Encumbrances 156,943 Budgetary Fund Balance,June 30(GAAP Basis) $ 5,499,845 139 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CA STATE LIBRARY FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 25,000 21,744 (3,256) Use of money and property - - 57 57 Amounts Available for Appropriation - 25,000 21,801 (3,199) Charges to Appropriation (Outflow): Community services - 18,000 15,101 2,899 Capital outlay - 7,000 6,700 300 Total Charges to Appropriations - 25,000 21,801 3,199 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - - $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 140 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES&TECHNOLOGIES ACT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 14,676 $ 14,676 $ 14,676 $ - Resources(Inflows): Intergovernmental - 45,000 45,500 500 Use of money and property - - 62 62 Contributions - 45,000 45,000 - Amounts Available for Appropriation 14,676 104,676 105,238 562 Charges to Appropriation (Outflow): Community services - 90,000 83,878 6,122 Total Charges to Appropriations - 90,000 83,878 6,122 Budgetary Fund Balance,June 30(Budgetary Basis) $ 14,676 $ 14,676 21,360 $ 6,684 Encumbrances 180 Budgetary Fund Balance,June 30(GAAP Basis) $ 21,540 141 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LITTER REDUCTION GRANT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 147 $ 147 $ 147 $ - Resources(Inflows): Intergovernmental 45,000 22,000 20,608 (1,392) Use of money and property - - (119) (119) Amounts Available for Appropriation 45,147 22,147 20,636 (1,511) Charges to Appropriation (Outflow): Engineering and public works 45,000 45,210 20,636 24,574 Total Charges to Appropriations 45,000 45,210 20,636 24,574 Budgetary Fund Balance,June 30(Budgetary Basis) $ 147 $ (23,063) - $ 23,063 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 142 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ENERGY EFFICIENT&CONSERVATION BLOCK GRANT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 453,170 195,810 (257,360) Amounts Available for Appropriation - 453,170 195,810 (257,360) Charges to Appropriation (Outflow): Community development - 77,304 193,862 (116,558) Capital outlay - 375,866 220,000 155,866 Total Charges to Appropriations - 453,170 413,862 39,308 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - (218,052) $ (218,052) Encumbrances 154,480 Budgetary Fund Balance, June 30(GAAP Basis) $ (63,572) 143 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SENIOR OUTREACH GRANT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 7,500 7,025 (475) Amounts Available for Appropriation - 7,500 7,025 (475) Charges to Appropriation (Outflow): Community services - 7,500 7,025 475 Total Charges to Appropriations - 7,500 7,025 475 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - - $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 144 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental 517,000 78,980 78,968 (12) Amounts Available for Appropriation 517,000 78,980 78,968 (12) Charges to Appropriation (Outflow): Engineering and public works 114,800 - - - Capital outlay 517,490 78,980 78,980 - Total Charges to Appropriations 632,290 78,980 78,980 - Budgetary Fund Balance,June 30(Budgetary Basis) $ (115,290) $ - (12) $ (12) Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ (12) 145 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) FOOTHILL BLVD. MAINTENANCE FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 221,775 $ 221,775 $ 221,775 $ - Resources(Inflows): Use of money and property - - 222 222 Amounts Available for Appropriation 221,775 221,775 221,997 222 Charges to Appropriation (Outflow): Engineering and public works 72,240 72,370 60,932 11,438 Total Charges to Appropriations 72,240 72,370 60,932 11,438 Budgetary Fund Balance,June 30(Budgetary Basis) $ 149,535 $ 149,405 161,065 $ 11,660 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 161,065 146 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 2,976,000 2,558,250 (417,750) Use of money and property - - 48,787 48,787 Amounts Available for Appropriation - 2,976,000 2,607,037 (368,963) Budgetary Fund Balance, June 30(Budgetary Basis) $ - $2,976,000 2,607,037 $ (368,963) Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $2,607,037 147 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) THE BIG READ LIBRARY GRANT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 10,100 $ 10,100 $ 10,100 $ - Resources(Inflows): Intergovernmental 40,000 40,000 37,645 (2,355) Use of money and property - - 29 29 Amounts Available for Appropriation 50,100 50,100 47,774 (2,326) Charges to Appropriation (Outflow): Community services 40,000 40,000 38,358 1,642 Total Charges to Appropriations 40,000 40,000 38,358 1,642 Budgetary Fund Balance,June 30(Budgetary Basis) $ 10,100 $ 10,100 9,416 $ (684) Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 9,416 148 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DRINK, DRIVE, LOSE GRANT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 100 $ 100 $ 100 $ - Resources(Inflows): Intergovernmental - - 1,777 1,777 Use of money and property - - 113 113 Amounts Available for Appropriation 100 100 1,990 1,890 Budgetary Fund Balance, June 30(Budgetary Basis) $ 100 $ 100 1,990 $ 1,890 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,990 149 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DEPARTMENT OF HOMELAND SECURITY GRANT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (70,860) $ (70,860) $ (70,860) $ - Resources(Inflows): Intergovernmental 15,000 104,610 129,281 24,671 Amounts Available for Appropriation (55,860) 33,750 58,421 24,671 Charges to Appropriation (Outflow): Public safety-fire protection 15,000 104,610 77,613 26,997 Total Charges to Appropriations 15,000 104,610 77,613 26,997 Budgetary Fund Balance,June 30(Budgetary Basis) $ (70,860) $ (70,860) (19,192) $ 51,668 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ (19,192) 150 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC RESOURCE GRANTS FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 107 $ 107 $ 107 $ - Resources(Inflows): Use of money and property - - 655 655 Contributions - 63,510 67,315 3,805 Miscellaneous - - 585 585 Amounts Available for Appropriation 107 63,617 68,662 5,045 Charges to Appropriation (Outflow): General government - 31,720 16,500 15,220 Total Charges to Appropriations - 31,720 16,500 15,220 Budgetary Fund Balance, June 30(Budgetary Basis) $ 107 $ 31,897 52,162 $ 20,265 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 52,162 151 CITY OF COLTON BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 1 B FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 231,955 $ 231,955 $ 231,955 $ - Resources(Inflows): Intergovernmental - 2,801,450 2,620,561 (180,889) Use of money and property 101,090 47,950 (4,638) (52,588) Amounts Available for Appropriation 333,045 3,081,355 2,847,878 (233,477) Charges to Appropriation (Outflow): Community development - 2,829,660 2,630,187 199,473 Total Charges to Appropriations - 2,829,660 2,630,187 199,473 Budgetary Fund Balance,June 30(Budgetary Basis) $ 333,045 $ 251,695 217,691 $ (34,004) Encumbrances 9,626 Budgetary Fund Balance,June 30(GAAP Basis) $ 227,317 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 3,647,023 $ 3,647,023 $ 3,647,023 $ - Resources(Inflows): Charges for services 1,079,910 1,055,180 1,060,099 4,919 Use of money and property 88,690 74,630 92,702 18,072 Amounts Available for Appropriation 4,815,623 4,776,833 4,799,824 22,991 Charges to Appropriation (Outflow): Engineering and public works 1,049,490 1,026,140 904,912 121,228 Capital outlay 100,000 100,000 38,338 61,662 Total Charges to Appropriations 1,149,490 1,126,140 943,250 182,890 Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,666,133 $ 3,650,693 3,856,574 $ 205,881 Encumbrances 6,553 Budgetary Fund Balance, June 30(GAAP Basis) $ 3,863,127 153 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 42 -TRAFFIC CONGESTION MITIGATION FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,237,048 $ 1,237,048 $ 1,237,048 $ - Resources(Inflows): Intergovernmental - 1,569,470 1,610,209 40,739 Use of money and property 15,860 22,900 46,211 23,311 Amounts Available for Appropriation 1,252,908 2,829,418 2,893,468 64,050 Charges to Appropriation (Outflow): Engineering and public works - 302,347 302,347 - Capital outlay 450,000 147,653 118,388 29,265 Total Charges to Appropriations 450,000 450,000 420,735 29,265 Budgetary Fund Balance,June 30(Budgetary Basis) $ 802,908 $ 2,379,418 2,472,733 $ 93,315 Encumbrances 12,388 Budgetary Fund Balance,June 30(GAAP Basis) $ 2,485,121 154 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) JUSTICE ASSISTANCE PROGRAM FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12 $ 12 $ 12 $ - Resources(Inflows): Intergovernmental - 209,640 33,200 (176,440) Use of money and property - - 2,437 2,437 Amounts Available for Appropriation 12 209,652 35,649 (174,003) Charges to Appropriation (Outflow): Public safety-police - 104,470 35,422 69,048 Capital outlay - 9,280 9,276 4 Total Charges to Appropriations - 113,750 44,698 69,052 Budgetary Fund Balance, June 30(Budgetary Basis) $ 12 $ 95,902 (9,049) $ (104,951) Encumbrances 11,497 Budgetary Fund Balance, June 30(GAAP Basis) $ 2,448 155 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SENIOR TRANSPORTATION SERVICE FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,164 $ 1,164 $ 1,164 $ - Resources(Inflows): Intergovernmental - - 165,190 165,190 Use of money and property 2,070 2,800 703 (2,097) Amounts Available for Appropriation 3,234 3,964 167,057 163,093 Charges to Appropriation (Outflow): Community services 129,720 164,590 160,433 4,157 Total Charges to Appropriations 129,720 164,590 160,433 4,157 Budgetary Fund Balance, June 30(Budgetary Basis) $ (126,486) $ (160,626) 6,624 $ 167,250 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 6,624 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) BICYCLE TRANSPORTATION ACCT. GRANT FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (25,324) $ (25,324) $ (25,324) $ - Resources(Inflows): Intergovernmental 1,270,000 - 25,200 25,200 Transfers in - - 124 124 Amounts Available for Appropriation 1,244,676 (25,324) - 25,324 Charges to Appropriation (Outflow): Capital outlay 1,270,000 - - - Total Charges to Appropriations 1,270,000 - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ (25,324) $ (25,324) - $ 25,324 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 82-1 FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12,025 $ 12,025 $ 12,025 $ - Resources(Inflows): Use of money and property - 270 323 53 Amounts Available for Appropriation 12,025 12,295 12,348 53 Budgetary Fund Balance,June 30(Budgetary Basis) $ 12,025 $ 12,295 12,348 $ 53 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 12,348 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 84-1 FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,026,156 $ 1,026,156 $ 1,026,156 $ - Resources(Inflows): Use of money and property 29,400 23,280 27,566 4,286 Amounts Available for Appropriation 1,055,556 1,049,436 1,053,722 4,286 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,055,556 $ 1,049,436 1,053,722 $ 4,286 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,053,722 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2000-01 SOUTH ETIWANDA FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 91,998 $ 91,998 $ 91,998 $ - Resources (Inflows): Use of money and property 1,400 11 11 Amounts Available for Appropriation 93,398 92,009 92,009 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 93,398 $ 92,009 $ 92,009 $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 92,009 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2000-02 RANCHO CUCAMONGA CORPORATE PARK FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 558,544 $ 558,544 $ 558,544 $ - Resources (Inflows): Use of money and property 9,000 59 59 - Amounts Available for Appropriation 567,544 558,603 581,333 22,730 Budgetary Fund Balance,June 30(Budgetary Basis) $ 567,544 $ 558,603 581,333 $ 22,730 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 581,333 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-03 RANCHO SUMMIT FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,250,442 $ 2,250,442 $ 2,250,442 $ - Resources(Inflows): Use of money and property 30,000 1,190 764 (426) Amounts Available for Appropriation 2,280,442 2,251,632 2,251,206 (426) Charges to Appropriation (Outflow): General government - 2,088,010 2,088,005 5 Total Charges to Appropriations - 2,088,010 2,088,005 5 Budgetary Fund Balance,June 30(Budgetary Basis) $ 2,280,442 $ 163,622 163,201 $ (421) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 163,201 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2001-01 FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (2,089,699) $ (2,089,699) $ (2,089,699) $ - Resources(Inflows): Use of money and property 13,270 10,280 12,165 1,885 Amounts Available for Appropriation (2,076,429) (2,079,419) (2,077,534) 1,885 Budgetary Fund Balance,June 30(Budgetary Basis) $ (2,076,429) $ (2,079,419) (2,077,534) $ 1,885 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (2,077,534) 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2003-01 PROJECT FUND FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,244,402) $ (1,244,402) $ (1,244,402) $ - Resources(Inflows): Use of money and property 1,700 100 86 (14) Amounts Available for Appropriation (1,242,702) (1,244,302) (1,244,316) (14) Budgetary Fund Balance,June 30(Budgetary Basis) $ (1,242,702) $ (1,244,302) (1,244,316) $ (14) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (1,244,316) 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2004-01 RANCHO ETIWANDA FOR THE YEAR ENDED JUNE 30, 2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,128,852 $ 1,128,852 $ 1,128,852 $ - Resources (Inflows): Use of money and property 21,000 230 210 (20) Amounts Available for Appropriation 1,149,852 1,129,082 1,129,062 (20) Charges to Appropriation (Outflow): General government - 69,010 35,466 33,544 Total Charges to Appropriations - 69,010 35,466 33,544 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,149,852 $ 1,060,072 1,093,596 $ 33,524 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,093,596 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2003-01 CULTURAL CENTER FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 203,513 $ 203,513 $ 203,513 $ - Resources(Inflows): Use of money and property 2,200 130 72 (58) Amounts Available for Appropriation 205,713 203,643 203,585 (58) Charges to Appropriation (Outflow): Capital outlay - 30,000 17,529 12,471 Total Charges to Appropriations - 30,000 17,529 12,471 Budgetary Fund Balance,June 30(Budgetary Basis) $ 205,713 $ 173,643 186,056 $ 12,413 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 186,056 166 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-01 VINTNER'S GROVE FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,978,617 $ 2,978,617 $ 2,978,617 $ - Resources(Inflows): Use of money and property 59,000 340 297 (43) Amounts Available for Appropriation 3,037,617 2,978,957 2,978,914 (43) Charges to Appropriation (Outflow): General government - 1,682,550 2,007,865 (325,315) Total Charges to Appropriations - 1,682,550 2,007,865 (325,315) Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,037,617 $ 1,296,407 971,049 $ (325,358) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 971,049 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-02 AMADOR ON ROUTE 66 FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 16,636 $ 16,636 $ 16,636 $ - Resources(Inflows): Use of money and property 14,000 250 150 (100) Amounts Available for Appropriation 30,636 16,886 16,786 (100) Charges to Appropriation (Outflow): General government - 9,120 9,111 9 Total Charges to Appropriations - 9,120 9,111 9 Budgetary Fund Balance,June 30(Budgetary Basis) $ 30,636 $ 7,766 7,675 $ (91) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 7,675 168 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) REDEVELOPMENT AGENCY-CAPITAL PROJECT FUND FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 294,432,099 $ 294,432,099 $ 294,432,099 $ - Resources(Inflows): Taxes 20,000,000 18,647,970 19,376,233 728,263 Use of money and property 5,166,230 5,166,230 6,044,859 878,629 Miscellaneous 58,000 58,000 27,497 (30,503) Transfers in 85,810 85,810 7,535,810 7,450,000 Amounts Available for Appropriation 319,742,139 318,390,109 327,416,498 9,026,389 Charges to Appropriation (Outflow): General government 4,761,290 4,959,119 4,324,362 634,757 Community development 121,000 137,570 105,813 31,757 Capital outlay 51,830,880 75,293,201 26,012,607 49,280,594 Debt service: Principal retirement 2,867,020 2,867,020 2,867,013 7 Interest and fiscal charges 9,350,820 9,350,820 15,443,065 (6,092,245) Transfers out 50,000 50,000 531,036 (481,036) Total Charges to Appropriations 68,981,010 92,657,730 49,283,896 43,373,834 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 250,761,129 $ 225,732,379 278,132,602 $ 52,400,223 Encumbrances 11,684,357 Budgetary Fund Balance,June 30(GAAP Basis) $ 289,816,959 169 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) REDEVELOPMENT AGENCY-DEBT SERVICE FUND FOR THE YEAR ENDED JUNE 30,2010 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 149,083,142 $ 149,083,142 $149,083,142 $ - Resources (Inflows): Taxes 80,000,000 74,591,850 77,504,933 2,913,083 Use of money and property 2,458,140 2,458,140 2,122,594 (335,546) Miscellaneous - - 10,706 10,706 Transfers in 18,395,680 20,365,630 - (20,365,630) Other debts issued - - 700,536 700,536 Amounts Available for Appropriation 249,936,962 246,498,762 229,421,911 (17,076,851) Charges to Appropriation (Outflow): General government 23,085,610 55,186,479 54,979,072 207,407 Capital outlay 28,527,050 12,966,261 9,185,736 3,780,525 Debt service: Principal retirement 6,811,320 6,811,320 7,248,156 (436,836) Interest and fiscal charges 12,265,670 12,865,670 12,966,200 (100,530) Transfers out 28,407,340 29,824,290 9,458,660 20,365,630 Total Charges to Appropriations 99,096,990 117,654,020 93,837,824 23,816,196 Budgetary Fund Balance,June 30(Budgetary Basis) $ 150,839,972 $ 128,844,742 135,584,087 $ 6,739,345 Encumbrances 6,679,267 Budgetary Fund Balance,June 30(GAAP Basis) $142,263,354 170 CITY OF RANCHO CUCAMONGA Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the government and to other government units, on a cost reimbursement basis. Equipment and Vehicle Replacement — Established to account for the accumulation of user charges to various City departments and the costs associated with replacing the City's vehicles. Computer Equipment/Technology Replacement — Established to account for the accumulation of resources and the costs associated with replacing the City's data processing equipment and maintaining current technology. 171 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2010 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 9,151,877 $ 3,139,694 $ 12,291,571 Receivables: Accrued interest 9,597 3,304 12,901 Total Current Assets 9,161,474 3,142,998 12,304,472 Noncurrent: Capital assets-net of accumulated depreciation 4,020,021 899,825 4,919,846 Total Noncurrent Assets 4,020,021 899,825 4,919,846 Total Assets $ 13,181,495 $ 4,042,823 $ 17,224,318 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 89,100 $ 231,708 $ 320,808 Total Current Liabilities 89,100 231,708 320,808 Total Liabilities 89,100 231,708 320,808 Net Assets: Invested in capital assets 4,020,021 899,825 4,919,846 Unrestricted 9,072,374 2,911,290 11,983,664 Total Net Assets 13,092,395 3,811,115 16,903,510 Total Liabilities and Net Assets $ 13,181,495 $ 4,042,823 $ 17,224,318 172 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30,2010 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 4,270 $ 4,270 Miscellaneous 1,500 - 1,500 Total Operating Revenues 1,500 4,270 5,770 Operating Expenses: Maintenance and operations 286,520 509,972 796,492 Depreciation expense 1,259,241 428,059 1,687,300 Total Operating Expenses 1,545,761 938,031 2,483,792 Operating Income(Loss) (1,544,261) (933,761) (2,478,022) Nonoperating Revenues(Expenses): Interest revenue 237,776 81,794 319,570 Contributions 25,000 11,766 36,766 Gain (loss)on disposal of fixed assets (47,329) - (47,329) Total Nonoperating Revenues(Expenses) 215,447 93,560 309,007 Changes in Net Assets $ (1,328,814) $ (840,201) $ (2,169,015) Net Assets: Beginning of Year, as originally reported $ 14,421,209 $ 4,174,917 $ 18,596,126 Restatements - 476,399 476,399 Beginning of Fiscal Year, as restated 14,421,209 4,651,316 19,072,525 Changes in Net Assets (1,328,814) (840,201) (2,169,015) End of Fiscal Year $ 13,092,395 $ 3,811,115 $ 16,903,510 173 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30,2010 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from customers and users $ 1,500 $ 4,270 $ 5,770 Cash paid to supplies for goods and services (337,843) (431,712) (769,555) Net Cash Provided (Used) by Operating Activities (336,343) (427,442) (763,785) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (1,391,784) (283,409) (1,675,193) Proceeds from the sale of capital assets (47,329) - (47,329) Net Cash Provided (Used) by Capital and Related Financing Activities (1,439,113) (283,409) (1,722,522) Cash Flows from Investing Activities: Interest received 239,624 82,540 322,164 Net Cash Provided (Used) by Investing Activities 239,624 82,540 322,164 Net Increase(Decrease) in Cash and Cash Equivalents (1,535,832) (628,311) (2,164,143) Cash and Cash Equivalents at Beginning of Year 10,687,709 3,768,005 14,455,714 Cash and Cash Equivalents at End of Year $ 9,151,877 $ 3,139,694 $ 12,291,571 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income(loss) $ (1,544,261) $ (933,761) $ (2,478,022) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 1,259,241 428,059 1,687,300 Increase(decrease) in accounts payable (51,323) 78,260 26,937 Total Adjustments 1,207,918 506,319 1,714,237 Net Cash Provided (Used) by Operating Activities $ (336,343) $ (427,442) $ (763,785) Non-Cash Investing, Capital, and Financing Activities: Contributions from governmental funds $ 25,000 $ 11,766 $ 36,766 174 CITY OF RANCHO CUCAMONGA Agency Funds Agency funds are used to account for assets held by the City as trustee or agent for individuals, private organizations, or other governmental units, and/or other funds. Special Deposits Fund - Established to account for all deposits held by the City in its fiduciary capacity. Assessment District 82-1 Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation proper coupons. Community Facilities District 84-1 Fund - This fund is used for the CFD 84-1 bond redemption process. The Bond Redemption fund is a short-term rotation fund, generally used to consolidate the collections received from the property owners upon payment of their annual assessments at the time of payment of their tax bills, along with contributions from the Redevelopment Agency. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payments on the bonds. Assessment District 84-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 85-PD Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds and Landscape/Lighting Act of 1972. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 88-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 91-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 93-3 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 99-1 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000-01 South Etiwanda Fund — Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000-02 Rancho Cucamonga Corporate Park Fund — Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. 175 CITY OF RANCHO CUCAMONGA Agency Funds (Continued) Assessment District No. 93-1 Masi Commerce Center Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District No. 2001-01 Special Tax Bonds, Series 2001-A Fund - Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District No. 2001-01 Special Tax Bonds, Series 2001-B Fund - Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2003-01 Series A Fund - This fund is used for the Community Facilities District 2003-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2003-01 Series B Fund - This fund is used for the Community Facilities District 2003-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-03 Rancho Summit Redemption Fund - Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000-03 Rancho Summit Reserve Fund - Established to account for the reserve fund held by the trustee. Community Facilities District 2004-01 Fund - This fund is used for the Community Facilities District 2004-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-03 Park Maintenance Fund - This fund is used for the maintenance of parks and parkways located within the Community Facilities District No. 2000-03. The District is located south of Summit Avenue on the east and west sides of Wardman Bullock Road. Community Facilities District 2006-01 Redemption Fund - This fund was established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006-02 Redemption Fund - This fund was established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Employee Deduction Account Fund - Established to account for the contribution by City employees towards specific employee-paid benefits. 176 THIS PAGE INTENTIONALLY LEFT BLANK 177 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 Special Assessment Assessment Deposits District 82-1 CFD 84-1 District 84-2 Assets: Cash and investments $ 7,582,423 $ 46 $ - $ 47 Receivables: Accounts 1,500 - 40,313 - Taxes 37,363 - 33 - Interest - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 7,621,286 $ 46 $ 40,346 $ 47 Liabilities: Accounts payable $ 1,926 $ - $ - $ - Accrued liabilities - - - - Deposits payable 7,619,360 - - - Due to external parties/outside agencies - - - - Payable to trustee - 46 40,346 47 Total Liabilities $ 7,621,286 $ 46 $ 40,346 $ 47 178 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 (Continued) Assessment Assessment District 85-PD CFD 88-2 District 91-2 CFD 93-3 Assets: Cash and investments $ 2,118,441 $ 4,709,294 $ 196,144 $ 382,554 Receivables: Accounts 1,322 - - - Taxes 14,114 4,653 601 - Interest 2,213 3,257 208 400 Restricted assets: Cash and investments with fiscal agents - 96,732 - 159,012 Total Assets $ 2,136,090 $ 4,813,936 $ 196,953 $ 541,966 Liabilities: Accounts payable $ 61,775 $ - $ - $ - Accrued liabilities 35,298 - 2,367 - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 2,039,017 4,813,936 194,586 541,966 Total Liabilities $ 2,136,090 $ 4,813,936 $ 196,953 $ 541,966 179 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 CFD 2000-02 CFD 2000-01 Rancho AD 93-1 Masi Assessment South Cucamonga Commerce District 99-1 Etiwanda Corporate Park Center Assets: Cash and investments $ 666,692 $ 320,226 $ 497,588 $ 456,715 Receivables: Accounts - - - - Taxes - 2,066 - - Interest 730 335 544 478 Restricted assets: Cash and investments with fiscal agents 2,077,685 111,425 680,348 242,510 Total Assets $ 2,745,107 $ 434,052 $ 1,178,480 $ 699,703 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 2,745,107 434,052 1,178,480 699,703 Total Liabilities $ 2,745,107 $ 434,052 $ 1,178,480 $ 699,703 180 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 (Continued) CFD 2001-01 CFD 2001-01 CFD 2003-01 CFD 2003-01 Series A Series B Series A Series B Assets: Cash and investments $ 1,706,872 $ 66,621 $ 1,048,007 $ 159,417 Receivables: Accounts - - - - Taxes 45,296 - 800 - Interest 3 - 1,097 167 Restricted assets: Cash and investments with fiscal agents 3,216,957 100,881 1,464,561 292,902 Total Assets $ 4,969,128 $ 167,502 $ 2,514,465 $ 452,486 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 4,969,128 167,502 2,514,465 452,486 Total Liabilities $ 4,969,128 $ 167,502 $ 2,514,465 $ 452,486 181 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 CFD 2000-03 CFD 2000-03 Rancho Rancho CFD 2000-03 Summit Summit Park Redemption Reserve CFD 2004-01 Maintenance Assets: Cash and investments $ 878,736 $ - $ 2,613,241 $ 830,856 Receivables: Accounts - - - - Taxes 7,776 - 39,087 3,643 Interest 919 - 2,588 876 Restricted assets: Cash and investments with fiscal agents - 717,891 2,982,821 - Total Assets $ 887,431 $ 717,891 $ 5,637,737 $ 835,375 Liabilities: Accounts payable $ - $ - $ 1,813 $ 5,720 Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 887,431 717,891 5,635,924 829,655 Total Liabilities $ 887,431 $ 717,891 $ 5,637,737 $ 835,375 182 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 (Continued) Employee CFD 2006-01 CFD 2006-02 Deduction Assessment Redemption Redemption Account District 82-2 Assets: Cash and investments $ 392,741 $ 204,958 $ 22,609 $ 5 Receivables: Accounts - - 3,051 - Taxes 11,215 3,877 - - Interest 411 215 - - Restricted assets: Cash and investments with fiscal agents 381,212 197,782 - - Total Assets $ 785,579 $ 406,832 $ 25,660 $ 5 Liabilities: Accounts payable $ - $ - $ 487 $ - Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - 25,173 - Payable to trustee 785,579 406,832 - 5 Total Liabilities $ 785,579 $ 406,832 $ 25,660 $ 5 183 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2010 Total Assets: Cash and investments $ 24,854,233 Receivables: Accounts 46,186 Taxes 170,524 Interest 14,441 Restricted assets: Cash and investments with fiscal agents 12,722,719 Total Assets $ 37,808,103 Liabilities: Accounts payable $ 71,721 Accrued liabilities 37,665 Deposits payable 7,619,360 Due to external parties/outside agencies 25,173 Payable to trustee 30,054,184 Total Liabilities $ 37,808,103 184 THIS PAGE INTENTIONALLY LEFT BLANK 185 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 Balance Balance July 1, 2009 Additions Deductions June 30, 2010 Special Deposits Assets: Cash and investments $ 18,435,603 $ 20,264,485 $ 31,117,665 $ 7,582,423 Receivables: Accounts - 2,840 1,340 1,500 Taxes - 37,363 - 37,363 Total Assets $ 18,435,603 $ 20,304,688 $ 31,119,005 $ 7,621,286 Liabilities: Accounts payable $ 17,692 $ 1,528,592 $ 1,544,358 $ 1,926 Deposits payable 18,417,911 1,904,616 12,703,167 7,619,360 Total Liabilities $ 18,435,603 $ 3,433,208 $ 14,247,525 $ 7,621,286 Assessment District 82-1 Assets: Cash and investments $ 43 $ 3 $ - $ 46 Total Assets $ 43 $ 3 $ - $ 46 Liabilities: Payable to trustee $ 43 $ 3 $ - $ 46 Total Liabilities $ 43 $ 3 $ - $ 46 CFD 84-1 Assets: Cash and investments $ - $ 40,442 $ 40,442 $ - Receivables: Accounts - 40,313 40,313 Taxes - 33 - 33 Total Assets $ - $ 80,788 $ 40,442 $ 40,346 Liabilities: Payable to trustee $ - $ 40,346 $ - $ 40,346 Total Liabilities $ - $ 40,346 $ - $ 40,346 Assessment District 84-2 Assets: Cash and investments $ 46 $ 1 $ - $ 47 Total Assets $ 46 $ 1 $ - $ 47 Liabilities: Payable to trustee $ 46 $ 1 $ - $ 47 Total Liabilities $ 46 $ 1 $ - $ 47 186 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Balance Balance July 1, 2009 Additions Deductions June 30, 2010 Assessment District 85-PD Assets: Cash and investments $ 2,513,673 $ 1,292,223 $ 1,687,455 $ 2,118,441 Receivables: Accounts 1,298 24 - 1,322 Taxes 21,020 14,114 21,020 14,114 Interest 2,715 2,206 2,708 2,213 Total Assets $ 2,538,706 $ 1,308,567 $ 1,711,183 $ 2,136,090 Liabilities: Accounts payable $ 52,206 $ 605,548 $ 595,979 $ 61,775 Accrued liabilities 22,203 39,925 26,830 35,298 Payable to trustee 2,464,297 1,883,401 2,308,681 2,039,017 Total Liabilities $ 2,538,706 $ 2,528,874 $ 2,931,490 $ 2,136,090 CFD 88-2 Assets: Cash and investments $ 4,630,629 $ 394,297 $ 315,632 $ 4,709,294 Receivables: Taxes 4,717 4,652 4,716 4,653 Interest 3,253 3,248 3,244 3,257 Restricted assets: Cash and investments with fiscal agents 16 96,732 16 96,732 Total Assets $ 4,638,615 $ 498,929 $ 323,608 $ 4,813,936 Liabilities: Payable to trustee $ 4,638,615 $ 538,239 $ 362,918 $ 4,813,936 Total Liabilities $ 4,638,615 $ 538,239 $ 362,918 $ 4,813,936 187 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 Balance Balance July 1, 2009 Additions Deductions June 30, 2010 Assessment District 91-2 Assets: Cash and investments $ 216,172 $ 39,494 $ 59,522 $ 196,144 Receivables: Taxes 521 601 521 601 Interest 232 208 232 208 Total Assets $ 216,925 $ 40,303 $ 60,275 $ 196,953 Liabilities: Accrued liabilities $ 1,556 $ 2,367 $ 1,556 $ 2,367 Payable to trustee 215,369 44,339 65,122 194,586 Total Liabilities $ 216,925 $ 46,706 $ 66,678 $ 196,953 CFD 93-3 Assets: Cash and investments $ 375,601 $ 434,006 $ 427,053 $ 382,554 Receivables: Interest 403 400 403 400 Restricted assets: Cash and investments with fiscal agents 26 159,012 26 159,012 Total Assets $ 376,030 $ 593,418 $ 427,482 $ 541,966 Liabilities: Payable to trustee $ 376,030 $ 598,285 $ 432,349 $ 541,966 Total Liabilities $ 376,030 $ 598,285 $ 432,349 $ 541,966 Assessment District 99-1 Assets: Cash and investments $ 673,247 $ 345,577 $ 352,132 $ 666,692 Receivables: Interest 688 730 688 730 Restricted assets: Cash and investments with fiscal agents 2,319,052 75,628 316,995 2,077,685 Total Assets $ 2,992,987 $ 421,935 $ 669,815 $ 2,745,107 Liabilities: Due to external parties/outside agencies $ 32,301 $ - $ 32,301 $ - Payable to trustee 2,960,686 544,659 760,238 2,745,107 Total Liabilities $ 2,992,987 $ 544,659 $ 792,539 $ 2,745,107 188 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Balance Balance July 1, 2009 Additions Deductions June 30, 2010 CFD 2000-01 South Etiwanda Assets: Cash and investments $ 303,808 $ 144,295 $ 127,877 $ 320,226 Receivables: Taxes 2,114 2,066 2,114 2,066 Interest 326 335 326 335 Restricted assets: Cash and investments with fiscal agents 111,430 23 28 111,425 Total Assets $ 417,678 $ 146,719 $ 130,345 $ 434,052 Liabilities: Payable to trustee $ 417,678 $ 150,823 $ 134,449 $ 434,052 Total Liabilities $ 417,678 $ 150,823 $ 134,449 $ 434,052 CFD 2000-02 Rancho Cucamonga Corporate Park Assets: Cash and investments $ 514,696 $ 589,149 $ 606,257 $ 497,588 Receivables: Interest 552 544 552 544 Restricted assets: Cash and investments with fiscal agents 680,370 154 176 680,348 Total Assets $ 1,195,618 $ 589,847 $ 606,985 $ 1,178,480 Liabilities: Payable to trustee $ 1,195,618 $ 593,420 $ 610,558 $ 1,178,480 Total Liabilities $ 1,195,618 $ 593,420 $ 610,558 $ 1,178,480 AD 93-1 Masi Commerce Center Assets: Cash and investments $ 445,629 $ 261,086 $ 250,000 $ 456,715 Receivables: Taxes 184 - 184 - Interest 478 - - 478 Restricted assets: Cash and investments with fiscal agents 242,510 - - 242,510 Total Assets $ 688,801 $ 261,086 $ 250,184 $ 699,703 Liabilities: Payable to trustee $ 688,801 $ 267,426 $ 256,524 $ 699,703 Total Liabilities $ 688,801 $ 267,426 $ 256,524 $ 699,703 189 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 Balance Balance July 1, 2009 Additions Deductions June 30, 2010 CFD 2001-01 Series A Assets: Cash and investments $ 1,413,507 $ 1,454,354 $ 1,160,989 $ 1,706,872 Receivables: Taxes 92,498 45,296 92,498 45,296 Interest 3 - - 3 Restricted assets: Cash and investments with fiscal agents 3,198,083 49,852 30,978 3,216,957 Total Assets $ 4,704,091 $ 1,549,502 $ 1,284,465 $ 4,969,128 Liabilities: Payable to trustee $ 4,704,091 $ 1,575,583 $ 1,310,546 $ 4,969,128 Total Liabilities $ 4,704,091 $ 1,575,583 $ 1,310,546 $ 4,969,128 CFD 2001-01 Series B Assets: Cash and investments $ 27,468 $ 137,633 $ 98,480 $ 66,621 Receivables: Interest 30 - 30 - Restricted assets: Cash and investments with fiscal agents 90,879 10,002 - 100,881 Total Assets $ 118,377 $ 147,635 $ 98,510 $ 167,502 Liabilities: Payable to trustee $ 118,377 $ 148,553 $ 99,428 $ 167,502 Total Liabilities $ 118,377 $ 148,553 $ 99,428 $ 167,502 CFD 2003-01 Series A Assets: Cash and investments $ 1,007,214 $ 1,080,810 $ 1,040,017 $ 1,048,007 Receivables: Taxes 390 800 390 800 Interest 1,081 1,096 1,080 1,097 Restricted assets: Cash and investments with fiscal agents 1,464,566 372 377 1,464,561 Total Assets $ 2,473,251 $ 1,083,078 $ 1,041,864 $ 2,514,465 Liabilities: Payable to trustee $ 2,473,251 $ 1,096,459 $ 1,055,245 $ 2,514,465 Total Liabilities $ 2,473,251 $ 1,096,459 $ 1,055,245 $ 2,514,465 190 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Balance Balance July 1, 2009 Additions Deductions June 30, 2010 CFD 2003-01 Series B Assets: Cash and investments $ 153,871 $ 209,382 $ 203,836 $ 159,417 Receivables: Interest 165 167 165 167 Restricted assets: Cash and investments with fiscal agents 292,806 96 - 292,902 Total Assets $ 446,842 $ 209,645 $ 204,001 $ 452,486 Liabilities: Payable to trustee $ 446,842 $ 211,664 $ 206,020 $ 452,486 Total Liabilities $ 446,842 $ 211,664 $ 206,020 $ 452,486 CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments $ 761,581 $ 841,322 $ 724,167 $ 878,736 Receivables: Taxes 24,453 7,776 24,453 7,776 Interest 817 919 817 919 Restricted assets: Cash and investments with fiscal agents 15 - 15 - Total Assets $ 786,866 $ 850,017 $ 749,452 $ 887,431 Liabilities: Payable to trustee $ 786,866 $ 3,092,279 $ 2,991,714 $ 887,431 Total Liabilities $ 786,866 $ 3,092,279 $ 2,991,714 $ 887,431 CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 717,653 $ 238 $ - $ 717,891 Total Assets $ 717,653 $ 238 $ - $ 717,891 Liabilities: Payable to trustee $ 717,653 $ 238 $ - $ 717,891 Total Liabilities $ 717,653 $ 238 $ - $ 717,891 191 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 Balance Balance July 1, 2009 Additions Deductions June 30, 2010 CFD 2004-01 Assets: Cash and investments $ 1,656,051 $ 4,028,593 $ 3,071,403 $ 2,613,241 Receivables: Taxes 51,157 39,087 51,157 39,087 Interest 1,779 2,588 1,779 2,588 Restricted assets: Cash and investments with fiscal agents 2,985,078 150 2,407 2,982,821 Total Assets $ 4,694,065 $ 4,070,418 $ 3,126,746 $ 5,637,737 Liabilities: Accounts payable $ - $ 16,285 $ 14,472 $ 1,813 Payable to trustee 4,694,065 5,242,221 4,300,362 5,635,924 Total Liabilities $ 4,694,065 $ 5,258,506 $ 4,314,834 $ 5,637,737 CFD 2000-03 Park Maintenance Assets: Cash and investments $ 634,379 $ 418,226 $ 221,749 $ 830,856 Receivables: Taxes 11,491 3,643 11,491 3,643 Interest 1,143 876 1,143 876 Total Assets $ 647,013 $ 422,745 $ 234,383 $ 835,375 Liabilities: Accounts payable $ 7,589 $ 81,486 $ 83,355 $ 5,720 Payable to trustee 639,424 433,355 243,124 829,655 Total Liabilities $ 647,013 $ 514,841 $ 326,479 $ 835,375 CFD 2006-01 Redemption Assets: Cash and investments $ 331,324 $ 468,198 $ 406,781 $ 392,741 Receivables: Taxes 4,416 11,215 4,416 11,215 Interest 356 411 356 411 Restricted assets: Cash and investments with fiscal agents 381,488 10 286 381,212 Total Assets $ 717,584 $ 479,834 $ 411,839 $ 785,579 Liabilities: Payable to trustee $ 717,584 $ 2,967,433 $ 2,899,438 $ 785,579 Total Liabilities $ 717,584 $ 2,967,433 $ 2,899,438 $ 785,579 192 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 (Continued) Balance Balance July 1, 2009 Additions Deductions June 30, 2010 CFD 2006-02 Redemption Assets: Cash and investments $ 173,764 $ 257,307 $ 226,113 $ 204,958 Receivables: Taxes 1,349 3,877 1,349 3,877 Interest 187 215 187 215 Restricted assets: Cash and investments with fiscal agents 197,927 5 150 197,782 Total Assets $ 373,227 $ 261,404 $ 227,799 $ 406,832 Liabilities: Payable to trustee $ 373,227 $ 275,104 $ 241,499 $ 406,832 Total Liabilities $ 373,227 $ 275,104 $ 241,499 $ 406,832 Employee Deduction Account Assets: Cash and investments $ - $ 217,588 $ 194,979 $ 22,609 Receivables: Accounts 673 2,378 - 3,051 Total Assets $ 673 $ 219,966 $ 194,979 $ 25,660 Liabilities: Accounts payable $ 370 $ 2,531 $ 2,414 $ 487 Payable to trustee 303 - 303 - Due to external parties/outside agencies - 25,173 25,173 Total Liabilities $ 673 $ 27,704 $ 2,717 $ 25,660 Assessment District 82-2 Assets: Cash and investments $ 5 $ - $ - $ 5 Total Assets $ 5 $ - $ - $ 5 Liabilities: Payable to trustee $ 5 $ - $ - $ 5 Total Liabilities $ 5 $ - $ - $ 5 193 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2010 Balance Balance July 1, 2009 Additions Deductions June 30, 2010 Totals -All A-gency Funds Assets: Cash and investments $ 34,268,311 $ 32,918,471 $ 42,332,549 $ 24,854,233 Receivables: Accounts 1,971 45,555 1,340 46,186 Taxes 214,310 170,523 214,309 170,524 Interest 14,208 13,943 13,710 14,441 Restricted assets: Cash and investments with fiscal agents 12,681,899 392,274 351,454 12,722,719 Total Assets $ 47,180,699 $ 33,540,766 $ 42,913,362 $ 37,808,103 Liabilities: Accounts payable $ 77,857 $ 2,234,442 $ 2,240,578 $ 71,721 Accrued liabilities 23,759 42,292 28,386 37,665 Deposits payable 18,417,911 1,904,616 12,703,167 7,619,360 Due to external parties/outside agencies 32,301 25,173 32,301 25,173 Payable to trustee 28,628,871 19,703,831 18,278,518 30,054,184 Total Liabilities $ 47,180,699 $ 23,910,354 $ 33,282,950 $ 37,808,103 194 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2010 Statistical Section Certain schedules recommended for inclusion in Comprehensive Annual Financial Reports of Municipalities by the Government Finance Officers Association have been omitted from this report. The omission of such schedules was made only after careful consideration of the merits of each recommended schedule by City management. 195 This part of the City of Rancho Cucamonga'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. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. 197 -201 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. 202 -206 Debt Capacity 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. 208 -214 Demographic and Economic Information 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. 215 -216 Operating Information 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. 217 -219 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 196 0) O Cl) N M ' 00 00 O LL) Cl) O — N f-- M 00 N (O — O (O (O V N 00 Cl) co M M M I-- 0) 00 M N O V � r. 06 O N Cl) O 0) O O M N 'IT O O (O M O 0) — 00 co 00 O N h OCT 06 LI) 00 00 Lf) 00 06 'zi O ti : (O 00 r 00 N Lf) — N LD Efl Lf) L() f— r— O ' Lf) L0 00 00 Oj fl- L() Cl) (0 O N N fl- Ln Lo 00 oc L() i M M Cfl : (C Ln O N O LO() LLr) 6') O (00 � It N LM() Lf) > O 0) CD 00 Li') O N Cl) O (0 00 N M G M O ti N O (fl � (fl 0) O M O M N N M O (o z fA h O 0) (O V fl ' Cl) O (O 0) 0) � 00 — V LL) f� 0) O — LL) c Cl) O1 N (O O f� 00 'It M 0) m Lo (O (O O z Lo M (O (O M C/) O It 0) N (O 00 M M O Cl) (O Q N 0) )O O O M O 00 M (O N N 00 N N O V M h h 00 Cl) N M O I- 00 (O O Cl) (O N Cl) ( O Lf) Lo 00 00 0) Lo 00 O N (0 N O Cl) (0 Lo OD N 00 00 O N O O N O O M (0 f� Ln O (0 O 00 M O M co 1- 00 M H O 00 Ei O L() M fl- M Lo (O Lo O N N O � (fl Li') M N O LC) Lf) O (0 p, N LN[') � M N N (V O � (�0 NO Lo N M fl- N M — f— N � � O } 00 00 m Ln O � O Ln fl- V) 00 O O O (0 f� ti O 0) 00 fl- (o (O U (fl O M O 00 O Cfl Ln Lf) O O (0 i O (o O N 00 00 O N N Lf) m Q I.L 00 L() fl- N N LC) _ f— M f— O N O V O � LC) O N (0 Lf) I OO N 0 0) N N U O O Li') m C C 00 N : Cl) N M O N Cl) (0 a) i N ;1- 00 (M 't — 00 LE UQ } EJ? 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(o N cTi v m a) ° cc ° o 0 0 N s L `) (n L` m 9 m w ° 20 a) 2 °- E v a c ° «� a) a) n a) o L � _ a c n E co m D- 2 .c y c 7o ( 'C > 'Z a (1°) a o a) a)'° c S a) (o C c U) V) c (0 N N .O+ U C y .V- C N d T T (0 a) w a .0. U) O y N C_ N d ° O D" a) a) O m r N c 0 a) a) a) w w C C X y O C O 9 O m V v T y cc, E ° ° m T a) c a) y ° (°)) E ° a) m m o f cw c ° o ° a>i m N Cl) Cl) 7 7 �° c°i m Co m U > X rn c 0 ° c °m w m a o m rn a) ° S a) m e n y c) o o E E c 0 Z ° m o X a) c w w O i L aa) N K a) o m E m a o (-° ° c 9 9 E E 'm a) c m ~ W w w LL c 30 0 ° ° o CQ rn CO rn °' O y _L a) a) N O � � N 7 7 7 0 0 c �0 to � c ca Cn Cn � m o o rn N '� m X m m o ° o c > o y F a C� LL LL LL U U W n c d - m c c a y F Z a) m o w C (a U L Cn c O a) c 7 CO a) w O O a) O (� U N a) J U Z) LL U 0 LL 2 a)U U H F J m0 0 LL J 9 N _ O O W O 0 c LL I- 201 CITY OF RANCHO CUCAMONGA Assessed Value and Estimated Actual Value of Taxable Property' (in thousands of dollars) City Fiscal Year Taxable Total Ended Less: Assessed Direct Tax June 30 Secured Unsecured Exemptions Value Rate 2001 7,387,507 730,449 - 8,117,956 0.41906% 2002 8,152,244 717,858 - 8,870,102 0.42442% 2003 9,111,167 753,737 - 9,864,904 0.43161% 2004 10,307,843 793,418 - 11,101,261 0.43815% 2005 11,771,189 765,065 - 12,536,254 0.43603% 2006 13,934,150 900,275 112,415 14,722,010 0.45051% 2007 16,618,860 1,004,845 133,237 17,490,468 0.46645% 2008 18,775,907 1,071,551 212,319 19,635,139 0.46829% 2009 19,737,213 1,184,333 216,211 20,705,335 0.47994% 2010 18,971,363 1,222,978 295,403 19,898,938 0.49807% NOTES: 1. In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 2. Prior to the fiscal year ended June 30, 2006, the assessed value figures are net of exemptions. Data Source: San Bernardino County Assessor; HdL Coren & Cone 202 0 0 0 0 0 0 0 0 0 00 CD co _ O cm LO Ln N 0 0 00 LO rn 00 0 O N co M M co M 00 CA O O LO N O O CDO L() Lf7 O O 0 0 0 0 0 7 0 O M O O V N 0 0 0 0 0 0 0 0 - O - O O O O O O O O O O O O N N O 0000 a N LO UI LA O � V O O O O 0) 0 M - Lf7 CD N O 0 0 O O O O O M O O V N - 0 0 0 0 0 0 O O O O O O O O_ O O O O CD O M CD O Lf7 coCO CO LO O (fl CO O O LO O O O It Le) Ln CDM O 0 0 0 0 O O O M O O V N 0 0 0 0 0 0 0 O O O Cfl O7 It Cfl Co M O O LP O 'ITco O) LO CO LO CC) 00O O co 00 N 00 O M coL!7 O M O O O O O O O O O N O O V N - 0 0 0 0 0 0 0 O - O O O O O O O O O O O O co O O O 00 � 00 co m M O 00 O O Cfl O cc m m O CO m Co O O W N N 1- O M ti Ln O M N N O O O O O O O O O N O O V O m N 0 0 0 0 0 0 O O O c U Q) a m O w M N 00 W O_ O 0 O O O_ V O CD CD 0 ON Lf7 X a) N CO O O m N M m N m T U) O Zr E O O N N Cfl O N M O Lf7 O m - O O O O O O O O O O O N O O V N w"- V) N 0 0 0 0 0 0 0 0 O O U U U m N X a) O O O O O 0 0 0 O O O O Lo Z m O 1- co h co N cA N CA Ih V y LT m O h LA O O CA It N M V Co N Ln 3 O co U') O O N N O Lf7 O Co O a) 2 i O O O O O O G O O N O O V c O O U a) N 0 0 0 0 0 0 0 0 CD CL j p O m } N N O � -o O O)'5 n O O O O O O O O O_ O O O O F L X = C p U- 0 00 O N O � LO M CA LO N U o U p_O CO O V LO O co Lo It N CO � V 00 'O m Q O c O O CO U) O O N ti LO O Co c Lp m O a) O O C Z O N O O O O O O O O . Cl! O O V O y U Q ER N N O O C7 CD CD 0 0 0 C D O n , LL a) m o Lri } o o_ o 0 0 0_ o 0 0 0 o v w r a) o 0 Lp O M O N M W N Ln C)) co O N a L U CA O O Cfl CDM t` V M V M LO I- m o °_ L c m O O M LO N O O N co O I- O 1 O O > J U O 0 0 0 0 0 - 0 0 0 N - O V O Q 3 E T m a Q N 0 0 0 0 0 0 O O r O O _- m O tY 2 O a O m n m p m a ° > a a E O O O O O O O O O_ O CD` V CO O I N 00 Lo I- I� CA co CD O O 00 co N CO M g 00 CO O U') V co X N x c co: i0 O co LO O N M CD ° d' O O O CD O O O . M O V T'- 'r W. 0 O X 0 0 0 0 0 0 0 0 O O N o�0° w -0- U F CL O U N O 1.2 C a) O 00 w Ln a) cm: O .L.. ° N 2 ON Q) O Q CT m O L O O ° O O O F O O Q C O �2 C C, m Ln a) a) m (D U) L a) O (� X O m �) 'OIn r O 3 T a) N L6 (n _° i E N LO D O) O Q 0 m m Oi 11 on ° ° a c '6 a) LO O a O d a) EIn a) a) m O p C O-p p- N ° U c 0 0) N E m m N U ° U 00 °o a) E o m d N O CL a L ° 3 =2600 T� yLQ N O N N < fl- O >-- c O aa) m.� t U a) LL p > a) o " J 0 ° ° c U o o m 'mU) O c is m o CD 18 ° m >'W aE) o rn co m '2 c c w v O v o o a Q tr y mLLIU2 � �� m0 � �_ O i 6 m a) Ln � J E T T O O m 0 s a) U L TL 0 U 0 (L E E c O.0 0 N > Lb V N (L w CD U) m c coo m c «° m m > ma :a rn $ a Q ° m ° m N L L 7 m p N C 0_ 0 N O N U)Y Q N p Q m QUUUU0LL20D U Q' H :: ° o of nF o — co z < o 203 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2010 2001 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Victoria Gardens Mall LLC $ 240,202,031 1.21% $ - 0.00% Catellus Development Corporation 176,374,833 0.89% - 0.00% PK Sale LLC 122,477,342 0.62% - 0.00% Homecoming I at Terra Vista 119,645,392 0.60% - 0.00% Rreef America Reit 11 Corporation TTTT 98,957,647 0.50% - 0.00% EQR-Fanwell 2007 LP 95,684,574 0.48% - 0.00% Knickerbocker Properties Inc XLVII 94,390,649 0.47% - 0.00% Teachers Insurance and Annuity Association 94,311,240 0.47% - 0.00% T Napf Meritage Ownership 87,447,180 0.44% - 0.00% PPF MF 9200 Milliken Ave LP 77,499,134 0.39% - 0.00% Western Land Properties - 0.00% 111,360,750 1.37% Recot, Inc. - 0.00% 77,642,585 0.96% BHP Coated Steel Corporation - 0.00% 66,151,433 0.81% LDC Cougar LLC - 0.00% 56,989,982 0.70% West Coast Liquidators, Inc. - 0.00% 54,139,771 0.67% Tamco Steel Subsidiary, Inc - 0.00% 52,435,904 0.65% Schlosser Forge Company - 0.00% 44,450,742 0.55% Graham Packaging Company GPLLC - 0.00% 38,864,571 0.48% TBC Rancho Cucamonga I, Inc. - 0.00% 35,607,577 0.44% Gruma Corporation - 0.00% 32,858,316 0.40% $ 1,206,990,022 6.07% $ 570,501,631 7.03% Source: San Bernardino County Assessor; HdL, Coren &Cone 204 CITY OF RANCHO CUCAMONGA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount of Levy 2001 33,362,558 32,401,099 97.12% N/A 32,401,099 97.12% 2002 37,044,883 36,209,613 97.75% N/A 36,209,613 97.75% 2003 41,370,392 41,367,297 99.99% N/A 41,367,297 99.99% 2004 48,523,843 47,534,048 97.96% N/A 47,534,048 97.96% 2005 54,730,054 53,435,838 97.64% N/A 53,435,838 97.64% 2006 66,676,852 65,853,106 98.76% N/A 65,853,106 98.76% 2007 80,690,744 80,591,967 99.88% N/A 80,591,967 99.88% 2008 91,354,251 90,692,622 99.28% N/A 90,692,622 99.28% 2009 98,855,469 95,515,265 96.62% N/A 95,515,265 96.62% 2010 98,181,404 95,149,733 96.91% N/A 95,149,733 96.91% NOTE: The amounts presented include City property taxes and Redevelopment Agency tax increment. This schedule also includes amounts collected by the City and Redevelopment Agency that were passed- through to other agencies. 'Data provided by the San Bernardino County Assessor's Office for collection of prior year taxes does not segregate the information by fiscal year. Therefore, the City is not able to provide this information in the above schedule. Source: San Bernardino County Assessor 205 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2010 2001 Business Name Business Category Business Name Business Category Albertsons Grocery Stores Liquor Albertsons Grocery Stores Liquor American Building Suppy Contractors Ameron International Contractors Ameron International Contractors Ameron Steel Pipe Contractors Apple Computer Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Chevron Service Stations Best Buy Electronics/Appliance Stores Circle K Grocery Stores Beer/Wine Chevron Service Stations Circuit City Electronics/Appliance Stores Circle K Service Station Costco Discount Department Stores Costco Discount Department Stores Graphic Controls Light Industrial/Printers Home Depot Lumber/Building Materials Home Depot Lumber/Building Materials JC Penney Department Stores Lowes Lumber/Building Materials Living Spaces Furniture Home Furnishings Mervyns Department Stores Lowes Lumber/Building Materials Montgomery Ward Department Stores Macys Department Stores Proficient Food Farm Products/Equipment Nic Partners Electrical Equipment Ralphs Grocery Stores Liquor Novartis Animal Health Health/Medical Rancho Mobil Service Stations Orchard Supply Hardware Hardware Stores S W School Supply Office Supplies/Furniture Ralphs Grocery Stores Liquor Shell/Texaco Service Stations Rancho Mobil Service Stations Stater Bros. Grocery Stores Liquor Sears Grand Department Stores Tamco Heavy Industrial Southwire Company Light Industrial/Printers Target Discount Department Stores Stater Bros. Grocery Stores Liquor Vineyard Mobil Service Stations Tamco Heavy Industrial Vons Grocery Stores Liquor Target Discount Department Stores Wal Mart Discount Department Stores Wal Mart Discount Department Stores West End Material Supply Lumber/Building Materials Source: The HdL Companies; State Board of Equalization 206 THIS PAGE INTENTIONALLY LEFT BLANK 207 CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year General Tax Total Ended Obligation Allocation Governmental June 30 Bonds Bonds 1 Loans Activities 2001 - 143,050,000 12,284,935 155,334,935 2002 - 214,140,000 24,696,887 238,836,887 2003 - 210,555,000 21,865,499 232,420,499 2004 - 320,180,000 20,342,137 340,522,137 2005 - 317,135,000 18,740,549 335,875,549 2006 - 311,005,000 17,212,452 328,217,452 2007 - 304,685,000 23,102,037 327,787,037 2008 - 424,060,000 21,705,050 445,765,050 2009 - 413,655,000 20,754,833 434,409,833 2010 - 404,990,000 20,005,200 424,995,200 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements The City issued over$165 million of new tax allocation bonds in 2004, $74 million in 2002 and $54 million in 2000 with a defeasance of$47 million. Additionally, a developer loan in the amount of$13 million was added in 2002. 2 This ratio is calculated using personal income and population for the prior calendar year. 208 Business-type Activities Utility Total Total Percentage Debt Revenue Certificates of Business-type Primary of Personal Per Bonds Participation Activities Government Income 2 Capita 2 - - - 155,334,935 4.89% 1,275 - - - 238,836,887 7.26% 1,902 - - - 232,420,499 6.92% 1,752 - - - 340,522,137 9.55% 2,483 - - - 335,875,549 8.57% 2,290 - - - 328,217,452 7.58% 2,121 - - - 327,787,037 6.81% 2,026 - - - 445,765,050 8.63% 2,587 - - - 434,409,833 7.91% 2,492 - - - 424,995,200 7.52% 2,391 209 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Outstanding General Bonded Debt Fiscal Year General Tax Percent of Percentage Ended Obligation Allocation Assessed of Personal Per June 30 Bonds Bonds Total Value 1 Income 2 Capita 2 2001 - 143,050 143,050 1.16% 4.35% 1,139 2002 - 214,140 214,140 1.61% 6.38% 1,614 2003 - 210,555 210,555 1.43% 5.90% 1,536 2004 - 320,180 320,180 1.95% 8.17% 2,183 2005 - 317,135 317,135 1.74% 7.32% 2,049 2006 - 311,005 311,005 1.49% 6.46% 1,922 2007 - 304,685 304,685 1.29% 5.90% 1,768 2008 - 424,060 424,060 1.65% 7.72% 2,433 2009 - 413,655 413,655 2.00% 7.32% 2,327 2010 - 404,990 404,990 2.04% - 2,264 General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none). Assessed value has been used because the actual value of taxable property is not readily available in the State of California. 2 These ratios are calculated using personal income and population for the prior calendar year. Information for calendar year 2009 per capita personal income was not available as of the CAFR publication date. 210 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2010 City Assessed Valuation $ 19,898,938 Redevelopment Agency Incremental Valuation 9,323,982 Adjusted Assessed Valuation $ 10,574,956 City Percentage Total Share of Applicable ' Debt 6/30/10 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.585% $ 264,220,000 1,545,687 Chaffey Community College District 19.231% 155,391,528 29,883,345 Chaffey Joint Union High School District 39.606% 97,400,000 38,576,244 Alta Loma School District 98.659% 19,324,873 19,065,726 Central School District 96.488% 23,840,777 23,003,489 Etiwanda School District CFD Nos. 1, 2 &3, 2004-2&2007-1 100.000% 25,870,000 25,870,000 Etiwanda School District CFD No. 7 21.530% 14,025,000 3,019,583 Etiwanda School District CFD No. 8 68.006% 7,255,000 4,933,835 Etiwanda School District CFD No. 9 70.844% 9,870,000 6,992,303 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 90.690% 19,945,000 18,088,121 Fontana Unified School District 0.783% 289,902,709 2,269,938 Upland Unified School District 0.416% 68,479,677 284,875 City of Rancho Cucamonga CFDs 100.000% 102,625,000 102,625,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 2,930,000 2,930,000 Total overlapping tax and assessment debt 1,101,079,564 279,088,146 Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations 8.921% 725,835,000 64,751,740 San Bernardino County Pension Obligations 8.921% 648,360,591 57,840,248 San Bernardino County Flood Control Dist General Fund Oblig 8.921% 114,710,000 10,233,279 Chaffey Community College District General Fund Obligations 19.231% 12,565,666 2,416,503 Cucamonga School District Certificates of Participation 29.106% 11,715,000 3,409,768 Fontana School District Certificates of Participation 0.783% 52,180,000 408,569 Upland Unified School District General Fund Obligations 0.416% 1,310,000 5,450 City of Rancho Cucamonga General Fund Obligations 100.000% - - West Valley Vector Control District Certificates of Participation 24.918% 3,625,000 903,278 Total gross direct and overlapping general fund debt 1,570,301,257 139,968,835 Total net direct and overlapping general fund debt 139,968,835 Total overlapping debt $ 2,671,380,821 419,056,981 City direct debt 424,995,200 Total direct and overlapping debt $ 844,052,181 Notes: For debt repaid with property taxes,the percentage of overlapping debt applicable is estimated using taxable assess( property values.Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. Overlapping governments are those that coincide, at least in part,with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residen and businesses of the City. This process recognizes that,when considering the City's ability to issue and repay long-term debt,the entire debt burden borne by the residents and businesses should be taken into account. Howeve this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Source: California Municipal Statistics, Inc., The HdL Companies 211 CITY OF RANCHO CUCAMONGA Legal Debt Margin Information Last Ten Fiscal Years 2010 2009 2008 2007 Debt limit $ 396,560,873 $ 427,275,583 $ 414,196,025 $ 370,340,380 Total net debt applicable to limit - - - - Legal debt margin $ 396,560,873 $ 427,275,583 $ 414,196,025 $ 370,340,380 Total net debt applicable to the limit as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% Legal Debt Margin Calculation for Fiscal Year 2009: Assessed value $ 10,574,956,614 Debt limit (3.75% of assessed value) 396,560,873 Debt applicable to limit: General obligation bonds - Legal debt margin $ 396,560,873 The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proportionately modified to 3.75% (25% of 15%)for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the State's establishment of the limit. Source: California Municipal Statistics, City of Rancho Cucamonga 212 Fiscal Year 2006 2005 2004 2003 2002 2001 $ 321,072,427 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 203,025,995 $ 187,893,846 $ 321,072,427 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 203,025,995 $ 187,893,846 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 213 CITY OF RANCHO CUCAMONGA Pledged-Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment ' Principal Interest Coverage 2001 25,956 3,825 7,371 2.32 2002 31,907 2,990 9,216 2.61 2003 36,139 3,585 10,878 2.50 2004 40,922 3,830 10,728 2.81 2005 45,909 3,045 14,397 2.63 2006 59,003 6,130 14,814 2.82 2007 71,985 6,320 14,577 3.44 2008 77,319 6,600 15,600 3.48 2009 77,581 10,405 20,994 2.47 2010 77,255 8,665 20,547 2.64 Note: Details regarding the city's outstanding debt can be found in the notes to the financial statements. Tax increment figures are net of related pass-through payments. 214 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Per Personal Capita Income' Personal Unemployment Calendar Population (in thousands) Income' Rate Year (1) (2) (2) (3) 2000 125,585 3,291,457 26,209 2.6% 2001 132,663 3,358,231 25,314 3.3% 2002 137,119 3,566,054 26,007 3.7% 2003 146,666 3,920,529 26,731 3.5% 2004 154,780 4,330,435 27,978 3.2% 2005 161,830 4,814,281 29,749 2.8% 2006 172,331 5,166,311 29,979 2.8% 2007 174,308 5,493,840 31,518 3.9% 2008 177,736 5,649,872 31,788 5.1% 2009 178,904 - - 8.6% NOTES: 12009 Personal Income unavailable as of the CAFR publication date. Sources: (1) State Department of Finance (2) Redevelopment Agency (3) State of California Employment Development Department 215 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Six Years Ago* 2009 2003 Percent of Percent of Number of Total Number of Total Employer Employees Rank Employment Employees Rank Employment Amphastar Pharmaceuticals 880 1 1.25% - - - City of Rancho Cucamonga 874 2 1.24% 850 3 1.55% Chaffey Community College 871 3 1.24% 475 8 0.87% Southern California Edison 800 4 1.14% 450 9 0.82% Alta Loma School District 690 5 0.98% 705 2 1.29% Mercury Insurance Company 606 6 0.86% - - - Big Lots 565 7 0.80% - - - Frito-Lay, Inc. 561 8 0.80% 600 4 1.10% West Valley Detention Center 520 9 0.74% - - - Bass Pro Shops 500 10 0.71% Mission Foods - - - 573 5 1.05% C. W. Construction - - - 550 6 1.01% Central School District - - - 520 7 0.95% Wal-Mart Stores, Inc - - - 445 10 0.81% Etiwanda School District - - - 933 1 1.71% "Total Employment" as used above represents the total employment of all employers located within City limits. *Data for prior years is only shown from the date of the City's implementation of GASB 34 forward. 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