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HomeMy WebLinkAbout2009/06/30 Comprehensive Annual Financial Report y� a I RANCHO ('UCAMONGA CITY OF RANCHO CUCAMONGA, CALIFORNIA Comprehensive Annual Financial Report Year Ended June 30, 2009 City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2009 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, 2009 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal ..............................................................................................................................i CityOfficials...................................................................................................................................... xxviii OrganizationChart.............................................................................................................................xxix Certificate of Achievement for Excellence in Financial Reporting ......................................................xxx 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..................................................................................................... 22 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, 2009 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................................................................................................................................. 118 SB325 .................................................................................................................................. 119 Recreation............................................................................................................................. 120 ParkDevelopment................................................................................................................. 121 Beautification......................................................................................................................... 122 LightingDistricts.................................................................................................................... 123 Landscape Maintenance Districts......................................................................................... 124 Transportation....................................................................................................................... 125 PedestrianGrant................................................................................................................... 126 Community Development Block Grant.................................................................................. 127 Assessment Administration................................................................................................... 128 San Sevaine/Etiwanda Drainage.......................................................................................... 129 AirQuality Improvement........................................................................................................ 130 SouthEtiwanda Drainage ..................................................................................................... 131 Lower Etiwanda Drainage..................................................................................................... 132 Masi Commerce Center........................................................................................................ 133 MeasureI .............................................................................................................................. 134 LibraryServices .................................................................................................................... 135 Metrolink................................................................................................................................ 136 California Literacy Program .................................................................................................. 137 AssetForfeiture .................................................................................................................... 138 UsedOil Recycling Grant...................................................................................................... 139 DrainageFacilities................................................................................................................. 140 COPSProgram Grant........................................................................................................... 141 Library Services & Technologies Act.................................................................................... 142 AB 2928 Traffic Congestion Relief........................................................................................ 143 Litter Reduction Grant........................................................................................................... 144 CongestionMitigation............................................................................................................ 145 Foothill Blvd. Maintenance.................................................................................................... 146 The Big Read Library Grant.................................................................................................. 147 Department of Homeland Security Grant.............................................................................. 148 Public Resource Grants........................................................................................................ 149 Proposition1 B....................................................................................................................... 150 IntegratedWaste Management............................................................................................. 151 Proposition 42—Traffic Congestion Mitigation ..................................................................... 152 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds (Continued): Justice Assistance Program.................................................................................................. 153 OTS 2005 State Seatbelt Grant............................................................................................ 154 Senior Transportation Service .............................................................................................. 155 Homeland Security Grant 2005............................................................................................. 156 Bicycle Transportation Account Grant.................................................................................. 157 Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: Assessment District 84-1 ...................................................................................................... 158 CFD 2000-01 South Etiwanda.............................................................................................. 159 CFD 2000-02 Rancho Cucamonga Corporate Park............................................................. 160 CFD 2000-03 Rancho Summit.............................................................................................. 161 CFD2001-01......................................................................................................................... 162 CFD 2003-01 Project Fund................................................................................................... 163 Public Library Bond Act—2000............................................................................................. 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......................................................................................................................... 185 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS Page Number STATISTICAL SECTION Financial Trends: Net Assets by Component— Last Seven Fiscal Years ....................................................... 195 Statement of Activities (Condensed)— Last Seven Fiscal Years........................................ 196 Fund Balances of Governmental Funds— Last Seven Fiscal Years .................................. 198 Changes in Fund Balances of Governmental Funds- Last Seven Fiscal Years...................................................................................................... 199 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property .................................... 200 Direct and Overlapping Property Tax Rates— Last Ten Fiscal Years................................ 201 Principal Property Taxpayers—Current Year and Nine Years Ago.................................... 202 Property Tax Levies and Collections— Last Ten Fiscal Years............................................ 203 Principal Sales Tax Remitters—Current Year and Nine Years Ago................................... 204 Debt Capacity: Ratios of Outstanding Debt by Type— Last Ten Fiscal Years............................................ 206 Ratios of General Bonded Debt Outstanding— Last Ten Fiscal Years............................... 208 Direct and Overlapping Debt............................................................................................... 209 Legal Debt Margin Information— Last Ten Fiscal Years..................................................... 210 Pledged-Revenue Coverage— Last Ten Fiscal Years........................................................ 212 Demographic and Economic Information: Demographic and Economic Statistics— Last Ten Calendar Years ...................................213 Principal Employers—Current Year and Six Years Ago.....................................................214 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2009 TABLE OF CONTENTS Page Number STATISTICAL SECTION (Continued) Operating Information: Full-Time and Part-Time City Employees by Function— Last Five Fiscal Years................ 215 Operating Indicators by Function —Last Five Fiscal Years.................................................216 Capital Asset Statistics by Function — Last Five Fiscal Years.............................................217 THIS PAGE INTENTIONALLY LEFT BLANK City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2009 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor DONALD J. KURTH, M.D. Mayor Pro Teri L. DENNIS MICHAEL Counrelmembers REX GUTIERREZ SAM SPAGNOLO _ DIANE WILLIAMS City Manager THE CITY OF RANCHO CUCAMONGA PACK LAM,AICP RANCHO CUCAMONGA December 10,2009 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, 2009. 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, 2009, 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 91729-0807•Tel 909-477-2700■Fax 909-477-2849■wwwcityofrc.us December 10,2009 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 177,736 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 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 10,2009 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 an 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 geographic, cost and infrastructure advantages make it well situated to ride the inland region's competitive advantages. This situation, combined with a low vacancy rate,has created the opportunity for significant near-term industrial real estate development. The city's base of office buildings has grown substantially and once the current housing downturn ends, it will be well situated for the next round of migration of office firms. Rancho Cucamonga has seen a surge in the migration of technicians, professionals and executives to the city's prosperous neighborhoods with 40.0% of the increase in the city's resident workers having jobs in management and the professions. 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 2009/10 total $36,691,300. The CIP includes improvements to community trails and parkway, drainage improvements, iii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga expansion/remodeling of the City Maintenance Yard, construction of the Hellman Fire Station and a new Fire Headquarters, Pacific Electric Trail phases IVa and IVb, and completion of the Haven Avenue grade separation project. 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 2008/09, 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 $250,000 of loss for general liability claims and purchases coverage for losses ranging from $250,000 to $10 million. Additionally, the City is self-funded for the first $100,000 of loss for workers' compensation claims and purchases coverage for losses ranging from$100,000 to$10 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 iv December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga connection with employee benefits offered through this plan beyond its annual contractual 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 2008/09 Redevelopment Agency: Economic Development The 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 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: Victoria Gardens Regional Town Center: Victoria Gardens currently offers more than 170 retailers, restaurants and office uses in approximately 1.2 million square feet. Agency staff has begun working with the developer to begin the second phase of this multi-year project, which may include additional office,residential and retail uses. Business Development: During the past year— despite the economic downturn — approximately 1,205 new businesses began operation in Rancho Cucamonga. Local and Regional Business Development and Outreach Programs: 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: • Inland Empire Economic Partnership • Small Business Development Center • Business Appreciation Week • Business and Broker Visitations • Print and Electronic Communications(website,newsletters, e-bulletins,tourism profiles) • Business Connection Network(BCN)—Chamber of Commerce • Third Party Electrical Certification Program • International Council of Shopping Centers(ICSC)Trade Show and Leasing Mall • ICSC Western Division Conference and Deal Making Program • CoreNet • NAIOP 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. The Agency has also begun attending the International Pow Wow tourism show in Anaheim, California. v December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Affordable Housing The Redevelopment Agency offers a number of programs which provide permanent affordable workforce housing. 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; $368-$680 for a one-bedroom unit; and $410-$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— 112 units • Villa del Norte Apartments—88 units • Pepperwood Apartments—228 units • Woodhaven Apartments— 105 units Senior Housing • Heritage Pointe Apartments—48 units • Olen Jones Apartments—96 units • Villa Pacifica Apartments— 158 units Near Future—New Project Development • Rancho Verde East Expansion—40 units • San Sevaine Villas—225 units • Villaggio at Route 66— 131 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 vi December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 • Foothill Boulevard Improvements • Etiwanda/San Sevaine Regional Storm Drain • I-15/Base Line Interchange • Haven Avenue Railroad Underpass/Grade Separation • Pacific Electric Trail Engineering Services: The Department is comprised of one lead section, the Engineering Administration Section, headed by the Director of Engineering Services/City Engineer, and six subordinate sections. The following provides highlights of the major accomplishments achieved during the reporting period and a description of the major capital projects completed. En ing eering Administration Section In addition to overseeing the operations of the Engineering Services Department's full-time,part- time, and contract employees and $39 million combined operating and capital budgets, the Engineering Administration Section managed several significant initiatives and projects this year. Key items this year included the creation of the City's first comprehensive Capital Improvement Program document, streamlining and improvements to the operating policies and procedures of the Municipal Utility, groundbreaking for the Haven Avenue Grade Separation Project, opening of the Maloof Greenbelt, completion of Phase IV of the Pacific Electric Trail, completion and opening of Garcia Park, and continued environmental review/design of several multi-year capital projects of city-wide/regional significance, such as the Foothill Boulevard Widening Project (Grove Avenue to Vineyard Avenue), and Base Line/I-15 Interchange Improvements. Capital Improvements Section The Capital Improvements Section is responsible for 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 Sections was the successful creation of the first Annual Comprehensive Capital Improvement Program that gives a 5-year forecast for each active capital endeavor budgeted by the City. A total of 32 Capital Improvement Projects amounting to over $34 million dollars were accepted by the City Council as complete during Fiscal Year 2008/09. vii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga The following are some of the key capital projects that were completed during Fiscal Year 2008/09: • Pacific Electric Trail Phase IV • Valle Vista School Sidewalk Project • Garcia Park • Banyan Community Trail Improvements from Amethyst to Archibald • Beryl Street Storm Drain and Pavement Rehabilitation • Terra Vista Parkway Improvement Rehabilitation • Milliken Avenue Pavement Rehabilitation from 7th to Arrow Route • Bluegrass and Wilson Landscape Improvements 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 completion of the Traffic Congestion Study and the Red Hill Traffic Study, and successful submission of a Safe Routes to School Grant Application for the Deer Creek Channel Improvements to benefit students attending Victoria Groves Elementary. Park Development Section The Park Development Section oversees the design and construction of the City's parks and recreational facilities, administers the Americans with Disabilities Act(ADA) Transition Plan and administers park and recreation related grants. This year's accomplishments include the completion of Garcia Park, and the rehabilitation of Old Towne Park and the Red Hill Park North Tot Lot. 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. Noteworthy accomplishments for this year include the assumption of responsibility for oversize load permit issuance, assistance with the creation and implementation of the Development Impact Fee Deferral Program, reviewing annexation and development agreement information for the future Carrari Ranch Project, and amendment of the City's Newsrack Ordinance. Integrated Waste/NPDES Section The Integrated Waste/NPDES Section is charged with administering the City's environmental programs that aim to encourage the preservation of natural resources and prevent stormwater pollution, thereby ensuring compliance with the NPDES (National Pollutant Discharge Elimination System) and AB 939 (Recycling Bill) mandates. Highlights for this year include completion of preliminary site plans for the future Household Hazardous Waste Facility, renewal viii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga of the City's waste hauling contract with Burrtec, and successful submission and completion of a grant application for recycling containers at the Adult Sports Complex/Epicenter. Municipal Utility Section The Rancho Cucamonga Municipal Utility (the Utility) functions as a "spot utility" providing electric service to a limited number of new commercial developments including and surrounding the Victoria Gardens Regional Center. The Utility completed negotiations with Southern California Edison on the New Municipal Departing Load agreement, successfully completed an operational audit of the utility's policies and practices, retained Nannette Sanders as its bankruptcy counsel for assistance in handling Chapter 7, 11, and 13 account issues related to rate payers and delinquent bills, and completed a comprehensive audit of customer accounts to diagnose and correct collections and billing discrepancies. The Utility also implemented new customer initiatives this year including Experian credit checks, bill payments via credit card, new customer account deposits, mandatory disconnections for non-payment, and collections noticing and processing in partnership with the City's Finance Department. It also began providing electrical service to the Civic Center and the Adult Sports Complex/Epicenter. Public Works Services: In July 2008, Public Works Services became a separate department. 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 Section which is charged with the management of three subordinate sections: Facilities Maintenance, Streets and Storm Drains Maintenance, and Parks and Landscaping Maintenance. The following are the highlights within the Public Works Services Department during Fiscal Year 2008/09: Administration Section: The design process has begun for the Public Works Service Center expansion. This expansion will provide the space greatly needed to accommodate the City's shift from a growth period to a maintenance mode. It is anticipated that this project will be ready to go to the Design Review Committee by March 2010, with construction commencing in September 2010 and construction completed in December 2011. 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$50,000 toward the purchase of two CNG dump trucks. Facilities Maintenance Section: The primary areas of focus this year included several projects at the Rancho Cucamonga Epicenter including: outfield fence replacement and padding installation, cross aisle waterproofing,replacing ice machines, switch gear replacement, seat replacements and additional handrails installed on the upper level. In addition, the security system at Lions East was upgraded, the repair and resealing of the Civic Center planter and parking deck was begun, and the Metrolink Station railing was repainted. Streets, Fleet, and Storm Drain Maintenance Section: This group completed several important projects including the completion of phase 6 of the Street Name Sign Replacement Program; the ix December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga improvements to CDBG-Hellman Drainage (Hellman North of Arrow on West Side); the continuation of replacement/upgrade of City LED traffic lights; AQMD-mandated retrofits of the diesel fleet; the replacement of several vehicles with "green" fuel technology; inspection of several bridges; and the expansion of the Graffiti Abatement Program to include private property removals. In addition, the construction of above ground storage tanks and a Compressed Natural Gas(CNG) station were completed at the end of FY 2008/09. 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. Other noteworthy accomplishments include retrofit drip irrigation projects in various locations; improvement of the concrete drainage located in various locations in LMD 1; Calsense irrigation water management retrofits; and completion of the Red Hill pedestrian paseo design. Planning: The Planning Department processed a wide variety of projects during the 2008/09 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 1,436 construction plan checks and 179 rechecks were completed. Some of the major development projects that were processed and/or inspected were: • Biane Business Park - Located on the current Biane Winery site, the EIR for this project is currently being prepared by a consultant. Additionally, a revised project description has been submitted for the project that will be reviewed in conjunction with an addendum to the project's Cultural Study. • Victoria Gardens Master Plan(VGMP) Amendments—A series of related amendments to the planning documents that govern the development of the Victoria Gardens Regional Mixed Use Lifestyle Center were requested by the respective developer. The Victoria Gardens Master Plan currently allows for approximately 2.45 million square feet of retail, office, and civic uses as well as up to 600 previously approved multiple-family residential units on the subject property. Approximately 52% of the approved residential dwelling units and 57% of the approved commercial, office, and civic uses included in the Victoria Gardens Master Plan have already been completed. The requested amendments are intended to allow the developer greater flexibility to construct the remaining number of dwelling units and undeveloped commercial office/retail space and to allow for the most efficient use of available land area within the VGMP project area. The amendments would also allow for creative and distinctive building design solutions in achieving these goals, such as increasing the building height to allow for the development of medium-rise (4-12 levels) office, residential or mixed-use buildings. x December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Completion and opening of the Victoria Promenade Hospitality Center at the northeast corner of Foothill and Rochester, which includes the four-story Four Points Sheraton. The hotel includes 112 rooms and is the latest building at the Victoria Promenade Center, located at the northeast corner of Foothill Boulevard and Rochester. Early reviews by travelers rate it high for cleanliness, friendly staff, and close proximity to Victoria Gardens. The Current Planning section was also involved in the following special projects: • The General Plan consultant and staff held a Community Fair on May 16, 2009 at Central Park and focused on possible land use alternatives that could be considered for future development. A number of booths and information, as well as an ongoing presentation by the City's consultant focused on possible land uses with respect to historic preservation, Healthy RC, A sustainable community, the hillsides, Victoria Gardens and vicinity, the Foothill Boulevard corridor, the south Haven Avenue corridor, the Haven Avenue/4th Street gateway, and southwest Rancho Cucamonga. • Historic Preservation Month was celebrated throughout the month of May and consisted of activities such as: Proclamations presented by the City Council in recognition to both historic societies; Mother's Day Tea hosted by Etiwanda Historical Society; Historical displays booths at Biane Library; a children's coloring activity distributed to both libraries; and residents, community-leaders, and stakeholders posed for pictures in front of their favorite historic places with "THIS PLACE MATTERS" signs that were then posted on a display board showcased at the May 27th reception. • The Planning Department staff conducted Sign Ordinance workshops to address concerns and questions from business owners, property managers, and sign contractors/companies in regards to the Sign Ordinance. • The City commissioned a consultant to conduct a community telephone survey to produce objective, reliable measures of resident's opinions on various issues that will be addressed in the General Plan Update. Some of the findings from the survey were as follows: 0 48.4% residents reported a "Good" quality of life in Rancho Cucamonga and 43.7%reported"Excellent" o Recreation, open spaces and low crime/public safety are what people like most about Rancho Cucamonga 0 49.6% support mixed use development 0 85% of residents are very or somewhat satisfied with the City's efforts to communicate with them o Residents were generally forward thinking on Economic Development initiatives, Redevelopment of Foothill Blvd, Bus Rapid Transit, Sustainability, and Healthy RC Advance Planning The Advance Planning section was involved in the following special projects: • Neighborhood Stabilization Program(NSP1)—The City received an allocation of$2,133,397 in Federal CDBG Stimulus funds to implement its foreclosed and abandoned properties/first- time buyer program pursuant to previous Council direction. xi December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Neighborhood Stabilization Program (NSP2) — The City applied for an additional allocation of$10,000,000 in Federal Stimulus funding to further address the residential foreclosures in the City. • Energy Efficiency and Conservation Block Grant(EECBG)—The City received an allocation of$1,597,700 in Federal Stimulus funds from the Department of Energy to address public and private energy efficiency improvements. This program is being implemented pursuant to Council direction. • Green Building Ordinance — A voluntary, incentive-based green building program was developed by staff in 2008. Because of potential concerns from the Attorney General's office opposing voluntary ordinances, staff is developing new minimum green building thresholds for commercial, industrial, residential and public projects and anticipates presenting this to City Council in the first quarter of 2010. • Census 2010—The Planning Department has been working closely with Census Bureau staff during the past 12 months to prepare for Census 2010. The City will begin utilizing funds received for participation in the LUCA program to purchase promotional items for events that will promote the 2010 Census update. Local activities are in the planning stages with the bulk of activity to occur between the months of January to April 2010. Historic Preservation Historic Preservation activities included the following: • Chaffey-Isle House - Continued monitoring of construction activity on the restoration of the Chaffey-Isle House. • Historic Pacific Electric Depot — The Registration Form for the designation of the Pacific Electric Etiwanda Depot is now complete. It will be sent to the State for their approval and forwarded to the United States Department of the Interior, National Park Service, for consideration of National Register Designation. If approved, National Register designation will allow the City the opportunity to apply for additional grant money for rehabilitation of the depot. • Working toward the adoption of the Historic Preservation Ordinance through Planning Commission and City Council. • Two Landmark Alterations are being processed(Nosenzo-Smiderle House&Toews House). • Two Conditional Use Permits were processed and finalized for historic homes (Stoebe House and Roberds' House) • Designated two Local Landmarks: Cucamonga Service Station&G. Edgar Frost House • Enacted 1 Mills Act contract: G. Edgar Frost House • General Plan Update — working with consultant in reviewing drafts of documents (historic contexts,Policy Options, Surveys,Methodology, etc.) • Initiated process for a General Plan and Development District Amendment for a non- conforming historic house on 7403 Archibald Avenue(Emery House). • Historic Preservation Subcommittee—In August the Planning staff joined Cucamonga Valley Water District staff along with the historic preservation consultants on a tour of the historic water channels in the northern portion of the City • Archive Center—ongoing updating and cataloging. • Mills Act annual inspections —Staff completed conducting the annual Mills Act inspections for 2009 to ensure property owners are complying with their Mills Act contract. xii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 23,000 inspections and issued almost 4,100 permits during the 2008/09 fiscal year. Building and Safety 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, and the publication of a quarterly newsletter. Building Inspection The Building Inspection Section assumed the enforcement responsibilities of mobile home parks from the County and designated one Inspector to work with the Inspection Supervisor to ensure the properties are maintained. In addition, this unit works with Code Enforcement to abate properties that are vacant and abandoned due to foreclosed residential and commercial properties. 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. xiii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. During FY 2008/09, 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 210 residents and collecting approximately 36-tons of garbage. Finally,this section is responsible for enforcing municipal codes against owners who have abandoned or vacated their properties. Community Services: Senior Services The James L. Brulte Senior Center functions with one goal in mind: improve the quality of life for all seniors in our community. At the core of the Senior Center's expansive program is the daily lunch program which provides inexpensive hot meals to over 250 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 two 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 their important work to raise funds for the homebound meal program to ensure that over 100 seniors per day receive a hot meal. The Senior Center has addressed many challenges over the past year in meeting the needs of older adults throughout our community. Additionally, the Center has established itself as 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 third 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 produced three completely different theatrical offerings to please audiences with their productions of Smokey Joe's Cafe, Noises Off, and Steel Magnolias, in addition to the 2008 Summer Family Musical, Joseph and the Amazing Technicolor Dreamcoat. Broadway at the Gardens was the newest theatre program to be offered at the Lewis Family Playhouse with its inaugural production of Stephen Sondheim's Sweeney Todd, the Demon Barber of Fleet Street. The Bank of America Imagination Courtyard hosted a variety of free events and concerts, including the Bank of America Family Festivals, Snowflake Festival and the new World Music Concert Series. Celebration Hall at the Victoria Gardens Cultural Center was xiv December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga also a very active space being home to the RC Theatre Arts Academy, used for Library programs and classes and playing host to a wide variety of rental events. Special Events and Special Proiects Last year over 40,000 community members attended the Department's major community-wide special events. Last year's special events included: 4th of July Fireworks Spectacular,Movies and Concerts in the Park, a Volunteer Recognition, the Maloof Greenbelt Dedication, Founders Festival, Snowflake Festival, Cinco de Mayo Celebration and Springtime Movies in the Park. Sports 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 our residents. A number of Summer Camps were offered for the community's youth, including: RC Family Sports Center Summer Camp, CMS Summer Sports Camp and a Winter Sports Camp. The Department's Pee Wee Sports Program continued to offer children ages 3-5 the opportunity to play basketball,baseball and soccer in a fun and friendly environment,where they were taught the basics of the sport in a team-oriented setting. The 2008 summer "Learn to Swim" Aquatics Program completed another successful season. The summer consisted of five two-week sessions of swim lessons, nine weekends of semi-private lessons and pool parties, and ten weeks of recreational swim. 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,Teens and Family The Department offered over 1,000 recreation classes, programs and workshops during the past year for all ages. Last year, over 6,000 participants were enrolled in the Department's recreation classes. Youth programs and activities included the very popular Playschool program, summer camps and special event 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 Colleges Fair, Career Fair,trips and opportunities to give back to their community, including beach clean-ups,the LINUS program and volunteering at Loma Linda Children's Hospital. The RC Family Resource Center provides a link to over 30 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 55,000 hours of volunteer services were provided by the xv December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 Angels of Anaheim. 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 143 sworn officers, 44 general employees and over 100 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; and a Retail Theft Team. 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 100,000. 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 2009, 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 made up 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 in an event of a school tragedy. 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 xvi December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 j aywalking. 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 the rules of the road. In conducting both educational programs and targeted enforcement the department has seen a 23 percent drop in the number of accidents involving pedestrians and bicyclists. 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 2008/09 fiscal year, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • Completed the Dirt Relocation Project on Hellman Avenue for a new fire station site. • Fleet Maintenance placed Medic Engine 177 in service on a reserve pumper; plans to purchase a new Engine are budgeted for the 09/10 Fiscal Year. • Purchased property to relocate and rebuild San Bernardino Rd. Station (172) which is over 50 years old. • Initiated a new Dispatch Services Contract with CONFIRE (Comm. Center). With the transition will come the addition of an advanced level 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. • Cooperative efforts with the fire alarm industry to reduce false alarms, a program developed by the Fire District in 2006, continue to reduce responses to unwanted, nuisance, and false alarms. Fiscal Year 2007/08 saw a 12% reduction in these alarms compared to the number of alarms logged during FY 2006/07. This year's reduction was even more dramatic. At the conclusion of FY 2008/09,unwanted alarms were down 28% from the total for FY 2007/08. In total, unwanted alarm responses are now down 36% xvii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga from the number of responses logged through the end of FY 2006/07. In actual numbers, responses to unwanted alarms have decreased by 270 calls per year. • Continued the public education "trading card" program in conjunction with Burrtec, Costco and the Rancho Cucamonga Professional Firefighters Association. The objective of this program is to educate children and their parents to reduce injuries and possible home fires. The donations received help defray the cost of the trading cards. • As a result of improved mutual-aid agreements with USFS and OES, the District recovered 99%of billed cost recovery invoices. • Five-year Fireworks Education and Enforcement program. The goal of this program is to educate the public and prevent injuries and fires through a program focusing on the dangers of fireworks and emphasizing that such devices are not permitted in the District. 2009 saw a 74% reduction in the number of fireworks complaints since 2005. The program includes the annual deployment of high visibility banners. Post cards are mailed to the homes in areas with a documented high use of fireworks and focused patrols are utilized by the District and the Sheriff's Department. This program will continue into the future with the aim of further reducing the use of fireworks and increasing public safety. • Wildland High Hazard Warning Signs Program(Archibald, Haven, and Skyline streets at hillside areas). The objective of the new signs at the entrance to the hillside areas is to educate the public on the hazards of dangerous behaviors (fireworks, open flame, smoking) and reduce the number and significance of fires. The District is receiving fewer calls from residents reporting dangerous activities and unauthorized fires as a result of these warning signs. The District is exploring installing two additional signs at other critical access points to the very high fire hazard area. • Emergency Management Program. Coordinated a comprehensive revision to the City of Rancho Cucamonga Emergency Operations Plan; completed a reconfiguration of the Emergency Operations Center (EOC) following NIMS compliance guidelines; and recovered approximately$26,000 worth of funds for the Foxborough Fire incident. Library Services: Library services in Rancho Cucamonga were more popular than ever in Fiscal Year 2008/09. As the Library celebrated its 15th anniversary, in the past fiscal year we checked out over 1.1 million books, DVDs, CDs and magazines, issued over 17,000 new library cards, 100,000 people used a library computer or our Wi-Fi networks, 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: 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. xviii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • The Summer Reading Program had over 2,500 youngsters maintaining their reading skills during the summer months. • The "Back to Basics" Children's Literacy Program served another class of 100 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 busy 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. Library Partnerships: • The Library formed many exciting partnerships in the past fiscal year. Working in concert with other agencies, some of these partnerships included working with the City Manager's Office on the "Healthy RC" program, in particular taking the lead on the "Healthy Mind" component, working with the Environmental Programs division on a large-scale Earth Day celebration, with the Geographic Information Systems (GIS) division on an innovative program with teens using GIS software, and with the Community Services Department on numerous programs promoting the "Page to the Stage"at the Lewis Family Playhouse. • Two notable partnerships with agencies outside of the City included working the AAA Speedway to bring 2009 Daytona 500 winner Matt Kenseth to the Biane Library for a special story time program, and with the National Endowment for the Arts to bring award-winning actor and community activist Edward James Olmos to the Lewis Family Playhouse to deliver the keynote address for our Hispanic Heritage Month celebration. 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: • Fifty tutor student pairs call the Library their home and their inspiration to keep reading. 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. xix December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Volunteer Services: • Between the Friends of the Library and the regular volunteers, over 17,000 hours of volunteer time were donated in Fiscal Year 2008/09. • 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 2008/09. Library Foundation Highlights: • 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 and towards a local history project. The Foundation also produced the successful 2009 "Library Telethon," raising over $93,000 in these challenging economic times. Goals for Next Year • By receiving another grant from the California State Library, the planning process to determine how to best expand library services to the second floor of the Paul A. Biane Library will continue. "Proof of concept" prototypes are in the process of being built, and will soon be tested in both libraries. This process will continue into Fiscal Year 2010/11, creating a detailed building program based on the feasibility study. The Library will continue to aggressively pursue grants in many areas. 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 additional planning and programming grants. The Library will also apply to the NEA to continue the popular "Big Read" program, and to the California State Library for additional funding for our new local history project. 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 xx December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. Through the Healthy RC initiative, a number of significant accomplishments have been realized. A few include: ■ Received a number of grants to implement Healthy RC related programs and policies including the prestigious Robert Woods Johnson grant. ■ Implemented the CASA program which provided bilingual healthy cooking classes to the predominantly Hispanic Northtown area of the City. ■ Incorporated policies into the City's General Plan Update that emphasize and encourage a healthy and active lifestyle for the community. ■ Implemented a variety of healthy programs, activities, walking clubs, etc. for the community. ■ Launched the Healthy RC website providing health-related information, tips, and resources to residents and businesses. 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: ■ Adoption of the City's first Sustainability Action Matrix ■ Working towards adoption of a Green Building Ordinance ■ Providing recycled water for irrigation at a number of landscaping sites ■ Retrofitting municipal buildings to maximize energy efficiency ■ Implementing energy efficiency revolving loan program for homeowners to complete energy retrofits at their home. RCTV-3 Upgrade: This past year, the City Manager's Office completed a much-needed upgrade of the equipment related to the City's Government Access Channel, RCTV-3. This upgrade replaced the control room's outdated equipment and technology with new, reliable equipment and allows staff to utilize the newest technology and practices related to running a government access channel. The new equipment allows staff to more easily manage — and increase—the programming and content that is currently offered on this channel. 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. Three employee learning groups were developed to pursue different initiatives. These groups are Ideal Culture,Practical Vision,and Employee Orientation. Federal Stimulus Tracking: The City Manager's Office led an aggressive effort to track all possible funding opportunities from the American Recovery and Reinvestment Act 2009 (ARRA). A multi-departmental committee was established to review each funding opportunity and assess its applicability for Rancho Cucamonga. The City has applied for a number of ARRA- funded grants,with some success. xxi December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Secondhand Smoke: The City Manager's Office continues to manage the City's evaluation of expanding its smoke-free policies to minimize the exposure and harmful effects of secondhand smoke. After prohibiting smoking at all city property and facilities, the City is also exploring prohibiting smoking in other public areas where the public is exposed to secondhand smoke. 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. 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 SAN-BAG, Omintrans, 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 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 xxii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. During FY 2008/09, Field Services received 5,593 requests for services. 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. 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 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. xxiii December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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—4t`year veterinary students • Mt. Sac RVT program—RVT students • 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 2008/09 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 xxiv December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 2008/09 staff processed approximately 10,530 business license applications (8,263 renewals and 2,267 new filings), inspected 1,787 businesses, and collected revenues totaling$2,149,406. 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. During Fiscal Year 2008/09, the Finance Division was notified that the City received its twenty- first 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. 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 assumed the lead role in the AVL pilot project; created an informational website for residents which allows them to view which Landscape Maintenance District (LMD) their property is located in and also view pertinent information about the LMDs; provided mapping support for the planning, design, and implementation of the City's Wayfinding Signage Program; and celebrated GIS Day 2009 at the Biane Library by organizing an event for students from local high schools to spend the day learning about geography,GIS and its many applications, and using GPS with GIS. 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 22 full-time and 36 part-time recruitments during the 2008/09 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 installed a public kiosk out side of the entrance to City Hall; implemented online renewal of pet licenses;replaced aged/obsolete printers and network equipment at City facilities; expanded secure (private) and public wireless internet services; and redesigned network services for the public to improve the management of public xxv December 10,2009 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga computers, including Wi-Fi services. Future planned enhancements include an online citizen relationship management system to allow the public to submit requests for service, improve internal/external tracking, and enhance customer satisfaction; electronic requisition services to streamline the purchasing process and reduce the use of paper forms; electronic time and attendance services to improve payroll processing efficiency and reduce the use of paper forms; and web services redesign. 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 2008. 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 the upgrade of the City's voicemail system; initiation and use of online auctioning of surplus property; reconfiguration of work and office space at City facilities; and the implementation of electronic requisition services in concert with the Information Services Division. 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. Toward the end of this fiscal year, the Division began the process to solicit 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. It is anticipated that the process will be concluded in December 2009. 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, 2008. 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. xxvi December 10,2009 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-one 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 financial operations of the City in a responsible and progressive manner. Respectfully submitted, Jack Lam,AICP Tamara L. Layne City Manager Finance Director xxvii CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUKE 30, 2009 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 Pam Easter Deputy City Manager/Administrative Services John Gillison Deputy City Manager/Community Development Vacant 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 Peter Bryan Library Director Robert Karatsu Planning Director James Troyer Police Chief Joe Cusimano Public Works Services Director Bill Wittkopf Redevelopment Agency Director Linda Daniels xxviii c m Q u o c m � m U U � d � E a a d 0 Q = o Q- m a V O � (n c y cRyf L U p W O Q V w •?` c m 0 0) z U m h m U U � m � � a � •c c � Q m H V � cn a Q XXIX 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. 41 . �L4 k1 Oi THE �As w "TH ITAM ORATION Presidcnt I� � KEAL ulCFTA Executive Director xxx City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2009 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LS •000 •000 •• CERTIFIED PUBLIC ACCOUNTANTS • Brandon W.Burrows,CYA • Donald L.Parker,C.P.A • Michael K.Chu,C.P.A • David E.Hale,C.P.A,C.F.P. A Professional Corporation • Donald G.Slater,C.P.A Richard K.Kikuchi,C.P.A Susan F.Matz,C.P.A. 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, 2009, 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, 2009, 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 November 24, 2009, 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,Soil&Lunghard,LLP 203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331 www.islepas.com 41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940 LSL • CEOTIFIEO PUBLIC 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. 9-, , November 24, 2009 2 CITY OF RANCHO CUCAMONGA MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Rancho Cucamonga ("City"), we offer readers of the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2009. 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.) 3 as well as the recognition of various long-term liabilities (e.g., bonds payable, accrued employee benefits, claims and judgments payable, etc.). 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 120 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 4 statements and those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement(see pages 22 and 26 of this report). The City maintains 73 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 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 69 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 117 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 193 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 30,2009 Governmental Business-Type Activities Activities Total 2009 2008 2009 2008 2009 2008 Current and other assets $ 731,600 $ 717,250 $ 3,184 $ 5,642 $ 734,784 $ 722,892 Capital assets, net 690,992 647,236 30,555 30,588 721,547 677,824 TOTALASSETS 1,422,592 1,364,486 33,739 36,230 1,456,331 1,400,716 Long-term liabilities outstanding 449,229 460,930 - - 449,229 460,930 Other liabilities 29,927 29,463 1,044 1,716 30,971 31,179 TOTAL LIABILITI ES 479,156 490,393 1,044 1,716 480,200 492,109 Net assets: Invested in capital assets, net of related debt 421,374 386,174 30,555 30,588 451,929 416,762 Restricted 401,458 372,602 680 3,924 402,138 376,526 Unrestricted 120,604 115,317 1,459 2 122,063 115,319 TOTAL NET ASSETS $ 943,436 $ 874,093 $ 32,694 $ 34,514 $ 976,130 $ 908,607 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 $976,130,429 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 $67,523,355, or 7.4%, during the current fiscal year, reflecting positive changes in the governmental activities of $56,122,719 and negative changes in the business-type activities of$2,210,304. Net assets were also increased by $13,610,940 ($13,219,952 for governmental activities and $390,988 for business-type activities) as a result of certain restatements related primarily to loans receivable and construction in progress at the beginning of the fiscal year (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 $43,723,102, 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 $14,349,801. This increase is due to an increase in notes and loans receivable of approximately $29.8 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 $2 million increase which represents an OPEB asset due to the partial prefunding of the Fire District's OPEB liability. The total increase is offset with the following decreases: 1) a $2.2 million decrease in deferred charges related to the cost of issuance for a new bond issuance in the prior fiscal year; 2) an $8.1 million decrease in land held for resale which represented land sold for affordable housing projects; and 3) cash and investments with fiscal agent decreased $4.8 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 $11,700,546. This decrease was due primarily to principal payments on outstanding debt in the amount of $11,849,923 and a net decrease in claims and judgments in the amount of $635,402. These decreases were offset by additional accrued interest for a developer loan in the amount of $618,392, and a net increase in accrued employee benefits in the amount of $512,243. A prior period adjustment in the amount of $(141,222) has been reflected in the financial statements to correct the prior year's ending balance on a developer loan. The remaining change is due to the amortization of bond premiums. • Other liabilities (e.g., accounts payable, accrued interest, due to other governments, etc.) increased slightly by $463,751. Accounts payable and accrued liabilities increased $1.2 million combined due to the timing of payments at year end. This is offset by a decrease of$493,303 in unearned revenue due to more grants receivable being collected within 60 days of year end as compared to the prior year. Also, interest payable decreased by $238,891 due to normal amortization of loans outstanding. 7 TABLE 2 CHANGES IN NET ASSETS (IN THOUSANDS) Year ended June 30,2009 Governmental Business-Type Activities Activity Total 2009 2008 2009 2008 2009 2008 REVENUES: Program Revenues: Charges for services $ 14,412 $ 16,103 $ 9,564 $ 9,155 $ 23,976 $ 25,258 Operating grants and contributions 6,220 5,827 - - 6,220 5,827 Capital grants and contributions 14,736 25,559 - - 14,736 25,559 General Revenues: Taxes: Property taxes 155,631 150,978 - - 155,631 150,978 Admissions taxes - - 18 2 18 2 Transient occupancy taxes 1,694 1,762 - - 1,694 1,762 Sales taxes 23,208 25,579 - - 23,208 25,579 Franchise taxes 7,392 6,589 - - 7,392 6,589 Intergovernmental 640 689 - - 640 689 Use of money and property 27,729 30,785 489 458 28,218 31,243 Other 5,074 4,730 19 18 5,093 4,748 Gain on sale of capital assets - 16 - - - 16 TOTAL REVENUES 256,736 268,617 10,090 9,633 266,826 278,250 EXPENSES: General government 54,218 47,392 - - 54,218 47,392 Public safety-police 28,253 28,031 - - 28,253 28,031 Public safety-fire protection 24,669 23,197 - - 24,669 23,197 Public safety-animal center 2,612 2,731 - - 2,612 2,731 Community development 20,986 60,637 - - 20,986 60,637 Community services 14,446 13,743 - - 14,446 13,743 Engineering and public works 31,016 34,718 - - 31,016 34,718 Interest on long term debt 23,945 23,870 - - 23,945 23,870 Sports Complex - 1,968 2,052 1,968 2,052 Municipal Utility - 10,800 7,269 10,800 7,269 TOTAL EXPENSES 200,145 234,319 12,768 9,321 212,913 243,640 INCREASE(DECREASE) IN NET ASSETS BEFORE TRANSFERS 56,591 34,298 (2,678) 312 53,913 34,610 TRANSFERS (468) (83) 468 83 - - INCREASE(DECREASE) IN NET ASSETS $ 56,123 $ 34,215 $ (2,210) $ 395 $ 53,913 $ 34,610 Restatement of Net Assets(See Note 12) $ 13,220 $ 7,777 $ 391 $ 1,159 $ 13,611 $ 8,936 Change in Net Assets from Prior Year $ 69,343 $ 41,992 $ (1,819) $ 1,554 $ 67,524 $ 43,546 8 The above condensed statement of activities of the City's governmental and business-type operations for the period ended June 30, 2009 shows total net assets increased by $67,523,355. Governmental activities increased the City of Rancho Cucamonga's net assets by$56,122,719, accounting for 104.09% of the total growth in net assets. This increase was offset by a decrease in business-type activities of $2,210,304. In addition to the current year's activities, net assets were further increased by $13,610,940 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 $34,610,606 based on the results of operations and were increased by$8,516,808 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 charges for services, capital grants and contributions, property taxes, sales taxes and use of money and propety. • The decrease in capital contributions and grants of $10,822,518 is primarily due the one-time capitalization of right of ways in approximately $8.2 million contributed by developers in the prior fiscal year. No similar transaction occurred in the current fiscal year. • The increase in property taxes of $4,652,881 is due primarily to increased assessed valuations throughout the City along with new housing developments. Included in the growth in general property taxes is property tax increment revenue ($2.9 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 growth in general property taxes relates primarily to the Fire District and the City's General Fund, as property tax assessments in FY 2008/09 had not yet adjusted to the broader real estate market decline. • The decrease in charges for services ($1.7 million), sales taxes ($2.4 million) and use of money and property ($3 million) are all a result of the economic downturn which began in December 2008. The slowdown in development activity resulted in a reduction in charges for services. Sales tax revenue declined as consumer resources became scarce. Significantly less interest revenue was earned on the City's pooled cash and investment compared to prior fiscal year due to plummeting interest rates. The most significant changes in expenses were in general government, engineering and public works, community development, and interest on long term debt. • General government expenses increased $6,825,887 primarily due to an increase of approximately $2.5 million in pass-thru payments from the Redevelopment Agency, and a $3 million increase in project improvement costs related to the function of community development. • Community development expenses decreased by $39,651,161 primarily due to prior year expenses related to the issuance of the 2007 Housing Set-Aside bonds for the security of affordability covenants in perpetuity on low-mod property and to add another 60 units in various projects over a five year period. No new bonds were issued in the current year. 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. 9 Governmental Activities (In Thousands) Total Cost Net Cost of Services of Services 2009 2008 2009 2008 General government $ 54,218 $ 47,392 $ (55,634) $ (45,316) Public safety-police 28,253 28,031 (26,078) (26,353) Public safety-fire protection 24,669 23,197 (23,490) (22,204) Public safety-animal center 2,612 2,732 (2,181) (2,289) Community development 20,986 60,637 (18,646) (40,793) Community services 14,446 13,743 (9,921) (9,416) Engineering and public works 31,016 34,718 (10,367) (19,843) Interest on long-term debt 23,945 23,870 (23,945) (23,870) Total $ 200,145 $ 234,320 $ (170,262) $ (190,084) 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 page 20 & 21, the governmental funds balance sheet is shown. The combined fund balance of $634,730,270 increased $9,310,326 or 1.5%, after restatements of $6,510,047 (see Note 12 to the financial statements for further detail of the restatements). The combined fund balance of$634,730,270 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 $92,315,232, which decreased by $2,695,539 from the prior year, net of a $1,072,653 restatement. The City's General Fund balance has reserves of $12,807,973 of which $9,821,226 is for advances, $2,780,015 is for encumbrances, $186,732 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. $79,507,259 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. 10 • 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. • 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 projects: 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 gain on investments: This designation offsets the valuation allowance recorded at fiscal year end to mark the City's investment portfolio to market value. 11 • 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 has a fund balance of $16,689,731, which increased by $2,134,091 from the prior year. The Fire District's General Fund contributed $1.13 million to fund balance due to higher than anticipated fire permit revenues, salary savings, workers compensation insurance savings, and less than anticipated costs for fuel. The Fire District's Community Facilities District (CFD) 85-1 contributed approximately $1.0 million to fund balance due to higher than anticipated assessment revenues, workers compensation insurance savings, and program savings in fire safety and personnel development. The Fire District Special Revenue Fund fund balance has reserves of $444,015, of which $392,505 is for encumbrances and $51,510 is for prepaid costs. There is also $16,245,716 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, vehicle and equipment replacement, employee leave payouts, land acquisition, working capital, workers compensation claims, and OPEB ARC. The Redevelopment Agency's Capital Project Fund has a fund balance of $294,432,099, which decreased by $2,435,972 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 $107,781,740 of which $16,479,312 is for encumbrances, $4,411,829 is for land held for resale, $86,887,268 is for long-term notes and loans receivable, and $3,331 is for prepaid costs. It also has $186,650,359 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 $149,083,142, which has increased by $22,223,278 from the prior year. The increase is due to property tax increment growth along with the deferral of a capital project. The Redevelopment Agency's debt service fund balance has reserves of$3,510,045 for encumbrances. It also has designated fund balance of$1,888,321 for vehicle and equipment replacement, $142,613,044 for debt service, and $1,071,732 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 54 special revenue funds and 15 capital project funds. These funds have a combined fund balance of$82,210,066, which has decreased by$24,471,172 from the prior year, after restatements of $(3,561) (see Note 12 to the financial statements for further detail of the restatements). The other governmental funds have a reserved fund balance of$7,432,631, of which $7,417,320 is for encumbrances and $15,311 is for prepaid costs. While the special revenue funds have a combined unreserved/undesignated fund balance of $71,387,708, and the capital project funds have a combined unreserved/undesignated fund balance of $3,389,727, 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 such as the new Public Works Maintenance Facility budgeted in FY 2009/10. 12 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 $32,760,965 of which $30,555,102 represents the amount invested in capital assets and $680,598 represents the amount for public benefit. Unrestricted net assets amount to $1,525,265. The decrease in net assets for the enterprise funds is $1,797,591, after restatements of $390,988 (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 $18,596,126, of which $4,418,788 represents the amount invested in capital assets. Unrestricted net assets amount to $14,177,338, which will be used to cover future vehicle and equipment and computer equipment/technology replacements. Total net assets decreased for these funds by $1,725,639 due to replacement needs exceeding current year user charges. 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$67,683,439 were $144,171 less than the final budgeted revenues of $67,827,610. This negative variance was primarily due to less than anticipated tax revenue and charges for services as a result of the economic downturn, which is offset by the effects of GASB 31 (fair value of investments) netting to a positive adjustment. The remaining difference is due to offsetting variances within other line items. The General Fund's actual ending expenditures of $74,231,646 were $3,850,998 less than the final budget of $78,082,644. 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 $667,218 in public safety — police, primarily due to vacancies not being filled at the County Sheriff level which resulted in contract savings to the City. Capital outlay expenditures had a positive budget variance of $285,376 due to the deferral of a chiller upgrade, less than anticipated expenditures on planned capital projects, and the shifting of certain expenditures that were budgeted as capital projects to operating expenditures for financial reporting purposes as these items ultimately did not meet the City's threshold for capitalization. Transfers out were $368,237 less than budgeted due to the Sports Complex requiring less than anticipated supplementary funding for the year. City facilities expenditures were $236,886 less than anticipated due primarily to savings in electricity costs as a result of the switchover from Southern California Edison to the Municipal Utility for key City facilities. Savings in fuel costs of$145,418 were also realized during the year along with various savings in contract services across departments. 13 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 $721,547,307 invested in a broad range of capital assets (see Table 3 below). This amount represents a net increase (including additions and deductions) of $43,723,102. TABLE 3 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION, IN THOUSANDS) For the year ended June 30,2009 Governmental Business-Type Activities Activities Total 2009 2008 2009 2008 2009 2008 Land $ 83,196 $ 75,904 $ 5,451 $ 5,451 $ 88,647 $ 81,355 Right-of-way 223,219 217,734 - - 223,219 217,734 Construction in progress 20,973 19,165 - 4,092 20,973 23,257 Buildings and improvements 121,400 116,893 10,990 20,847 132,390 137,740 Equipment and vehicles 11,389 11,187 47 198 11,436 11,385 Furniture and fixtures 1,683 1,260 53 - 1,736 1,260 Infrastructure 229,132 205,093 14,014 - 243,146 205,093 TOTALS $ 690,992 $ 647,236 $ 30,555 $ 30,588 $ 721,547 $ 677,824 The most significant change in capital assets for governmental activities is the increase in infrastructure of $24,039,282. It was largely the result of the completion of the Pacific Electric Trail phases I, II, III and V. The most significant change for business-type activities is the recategorization of assets from building and improvements to infrastructure. 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 $449,229,380 for bonds (RDA), loans (RDA), capital lease, claims and judgments payable, and accrued employee benefits compared to $460,929,926 in the prior year, a decrease of $11,700,546. (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 employee benefits liability. 14 TABLE 4 OUTSTANDING DEBT,ATYEAR END (IN THOUSANDS) Fort he year ended June 30,2009 Governmental Business-Type Activities Activities Total 29L4 ZM2 ZLU Tax Allocation Bonds $ 413,655 $ 424,060 $ $ - $ 413,655 $ 424,060 Developer Loans 20,755 21,705 - 20,755 21,705 Capital Lease 47 65 - 47 65 Claims and Judgments Payable 2,406 3,041 - 2,406 3,041 Accrued Employee Benefits 7,527 7,015 - 7,527 7,015 Unamortized Bond Premium 4,839 5,044 - 4,839 5,044 TOTALS $ 449,229 $ 460,930 $ $ - $ 449,229 $ 460,930 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 Fiscal Year 2008/09 will represent a year of economic challenges as the City, like all other state and local governments throughout the nation, adjusts to the direct and ancillary effects of the collapse of the housing market and the growing sub-prime mortgage default crisis in the county. Some of the major revenue impacts on the operating budget include a decline in development fee revenues; declining property tax, franchise fee, and sales tax revenues; and a reduction in State funding. Some of the major cost challenges addressed in the operating budget include an increase in the police contract; final year of labor contracts; increased utility and fuel costs; increased building and facilities capital maintenance and other fixed costs; and increased fees charged by other agencies. The Operating Budget for Fiscal Year 2008/09 is balanced within the constraints of the above noted fixed cost increases and revenue declines caused by the economic downturn, with a planned usage of $463,360 in reserves to fully fund current City services. The City will continue to provide the highest level of service to the community within the City's financial constraints while remaining consistent with the City Council's goals and objectives. The General Fund budget for Fiscal Year 2008/09 is $69,651,570 representing a $437,420 decrease from the prior year. Questions or requests for information regarding the City of Rancho Cucamonga's Fiscal Year 2009/10 budget should be directed to the Finance Department at the address below. 15 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, 2009 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 580,185,007 $ 1,719,610 $ 581,904,617 Receivables: Accounts 2,129,907 1,526,320 3,656,227 Taxes 9,110,598 485 9,111,083 Notes and loans 93,301,945 - 93,301,945 Accrued interest 2,608,221 1,905 2,610,126 Deferred loans 384,480 - 384,480 Grants 2,955,346 - 2,955,346 Internal balances 66,662 (66,662) - Prepaid costs 256,884 525 257,409 Deposits 20,000 1,477 21,477 Due to external parties/outside agencies 73,465 - 73,465 Deferred charges 5,976,334 - 5,976,334 Land held for resale 4,411,829 - 4,411,829 Restricted assets: Cash and investments with fiscal agent 28,119,344 - 28,119,344 OPEB asset 2,000,000 - 2,000,000 Capital assets not being depreciated 327,388,465 5,451,015 332,839,480 Capital assets, net of depreciation 363,603,740 25,104,087 388,707,827 Total Assets 1,422,592,227 33,738,762 1,456,330,989 Liabilities: Accounts payable 16,104,204 896,012 17,000,216 Accrued liabilities 3,023,127 54,171 3,077,298 Accrued interest 7,049,738 - 7,049,738 Unearned revenue 3,318,324 - 3,318,324 Deposits payable 46,237 94,276 140,513 Due to other governments 385,091 - 385,091 Noncurrent liabilities: Due within one year 13,518,684 - 13,518,684 Due in more than one year 435,710,696 - 435,710,696 Total Liabilities 479,156,101 1,044,459 480,200,560 Net Assets: Invested in capital assets, net of related debt 421,373,661 30,555,102 451,928,763 Restricted for: Other post employment benefits 2,000,000 - 2,000,000 Community development projects 20,914,807 - 20,914,807 Public safety 117,384 - 117,384 Community services 13,033,730 - 13,033,730 Capital projects 219,941,041 - 219,941,041 Debt service 128,762,153 - 128,762,153 Fire protection 16,689,731 - 16,689,731 Public benefit- Municipal Utility - 680,598 680,598 Unrestricted 120,603,619 1,458,603 122,062,222 Total Net Assets $ 943,436,126 $ 32,694,303 $ 976,130,429 See Notes to Financial Statements 17 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2009 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 54,217,684 $ 2,680,824 $ 146,832 $ - Public safety- police 28,253,507 1,154,126 1,021,733 - Public safety-fire protection 24,668,576 1,080,125 27,292 70,860 Public safety-animal center 2,611,744 430,649 - - Community development 20,986,288 1,425,759 907,265 3,873 Community services 14,445,691 3,233,081 1,283,318 8,095 Engineering and public works 31,015,846 4,407,074 2,833,332 14,653,540 Interest on long-term debt 23,945,249 - - - Total Governmental Activities 200,144,585 14,411,638 6,219,772 14,736,368 Business-Type Activities: Sports Complex 1,968,331 482,633 - - Municipal Utility 10,799,700 9,080,824 - - Total Business-Type Activities 12,768,031 9,563,457 - - Total Primary Government $ 212,912,616 $ 23,975,095 $ 6,219,772 $ 14,736,368 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 $ (51,390,028) $ - $ (51,390,028) (26,077,648) - (26,077,648) (23,490,299) - (23,490,299) (2,181,095) - (2,181,095) (18,649,391) - (18,649,391) (9,921,197) - (9,921,197) (9,121,900) - (9,121,900) (23,945,249) - (23,945,249) (164,776,807) - (164,776,807) (1,485,698) (1,485,698) (1,718,876) (1,718,876) (3,204,574) (3,204,574) (164,776,807) (3,204,574) (167,981,381) 155,631,274 - 155,631,274 - 18,156 18,156 1,694,489 - 1,694,489 23,207,504 - 23,207,504 7,391,564 - 7,391,564 640,046 - 640,046 27,728,809 488,998 28,217,807 5,073,973 18,983 5,092,956 (468,133) 468,133 - 220,899,526 994,270 221,893,796 56,122,719 (2,210,304) 53,912,415 874,093,455 34,513,619 908,607,074 13,219,952 390,988 13,610,940 $ 943,436,126 $ 32,694,303 $ 976,130,429 See Notes to Financial Statements 19 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30,2009 Special Capital Projects Revenue Funds Funds Redevelopment General Fire District Agency Assets: Cash and investments $ 76,801,086 $ 16,966,090 $ 252,856,811 Receivables: Accounts 1,154,837 241,851 825 Taxes 5,044,768 533,547 324,639 Notes and loans - - 93,301,945 Accrued interest 1,247,635 29,535 1,123,157 Deferred loans - - - Grants - - - Prepaid costs 186,732 51,510 3,331 Deposits 20,000 - - Due from other funds 2,787,882 230,051 Advances to other funds 51,068,802 3,953,624 Due from external parties/outside agencies 73,465 - Land held for resale - 4,411,829 Restricted assets: Cash and investments with fiscal agents - - 49,523 Total Assets $ 138,385,207 $ 17,822,533 $ 356,255,735 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,824,237 $ 205,856 $ 4,259,669 Accrued liabilities 1,388,288 926,946 67,434 Deferred revenues 42,815,077 - 6,414,677 Unearned revenues - - Deposits payable 42,373 Due to other governments - - Due to other funds 313,054 Advances from other funds - - 50,768,802 Total Liabilities 46,069,975 1,132,802 61,823,636 Fund Balances: Reserved: Reserved for encumbrances 2,780,015 392,505 16,479,312 Reserved for prepaid costs 186,732 51,510 3,331 Reserved for land held for resale - - 4,411,829 Reserved for notes and loans - 86,887,268 Reserved for advances to other funds 9,821,226 - Reserved for deposits 20,000 Unreserved: Unreserved, reported in nonmajor: Special revenue funds - Capital projects funds - - Designated for self-insurance 8,401,532 966,806 Designated for working capital 3,321,226 2,331,784 - Designated for capital improvement projects 1,550,000 3,994,215 185,376,273 Designated for changes in economic circumstances 14,696,894 - - Designated for debt service - - Designated for land acquisition - 1,364,545 Designated for City facilities'capital repair 20,330,495 - Designated for information technology 444,000 - Designated for radio system acquisition 361,722 150,000 Designated for dispatch system acquisition - 322,395 Designated for vehicle and equipment replacement - 3,894,162 Designated for employee leave payouts 4,488,977 2,291,679 Designated for booking fees 1,391,059 - Designated for law enforcement 4,487,858 - Designated for contract development services 1,584,285 14,293 Designated for sphere of influence 695,710 - Designated for general plan update 17,779 Designated for guaranteed investment contracts 16,738,580 Designated for multi-species habitat plan 200,000 Designated for spay/neuter program 266,812 - - Designated for unrealized gain on investments 522,023 127,923 1,274,086 Designated for other post employment benefits - 787,914 - Designated for mobile home park program 8,307 - - Total Fund Balances 92,315,232 16,689,731 294,432,099 Total Liabilities and Fund Balances $ 138,385,207 $ 17,822,533 $ 356,255,735 See Notes to Financial Statements 20 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30,2009 Debt Service Funds Other Total Redevelopment Governmental Governmental Agency Funds Funds Assets: Cash and investments $ 132,829,440 $ 86,275,866 $ 565,729,293 Receivables: Accounts - 732,394 2,129,907 Taxes 1,259,227 1,948,417 9,110,598 Notes and loans - - 93,301,945 Accrued interest 105,482 86,917 2,592,726 Deferred loans - 384,480 384,480 Grants 2,955,346 2,955,346 Prepaid costs 15,311 256,884 Deposits - 20,000 Due from other funds 244,994 3,262,927 Advances to other funds - 55,022,426 Due from external parties/outside agencies 73,465 Land held for resale - - 4,411,829 Restricted assets: Cash and investments with fiscal agents 20,320,989 7,748,832 28,119,344 Total Assets $ 154,515,138 $ 100,392,557 $ 767,371,170 Liabilities and Fund Balances: Liabilities: Accounts payable $ 5,431,385 $ 4,089,186 $ 15,810,333 Accrued liabilities - 640,459 3,023,127 Deferred revenues 2,542,681 51,772,435 Unearned revenues 3,318,324 3,318,324 Deposits payable - 3,864 46,237 Due to other governments 611 384,480 385,091 Due to other funds - 2,949,873 3,262,927 Advances from other funds - 4,253,624 55,022,426 Total Liabilities 5,431,996 18,182,491 132,640,900 Fund Balances: Reserved: Reserved for encumbrances 3,510,045 7,417,320 30,579,197 Reserved for prepaid costs - 15,311 256,884 Reserved for land held for resale - - 4,411,829 Reserved for notes and loans - 86,887,268 Reserved for advances to other funds - 9,821,226 Reserved for deposits - - 20,000 Unreserved: Unreserved, reported in nonmajor: Special revenue funds - 71,387,708 71,387,708 Capital projects funds - 3,389,727 3,389,727 Designated for self-insurance - - 9,368,338 Designated for working capital - 5,653,010 Designated for capital improvement projects - - 190,920,488 Designated for changes in economic circumstances - - 14,696,894 Designated for debt service 142,613,044 - 142,613,044 Designated for land acquisition - - 1,364,545 Designated for City facilities'capital repair - 20,330,495 Designated for information technology - 444,000 Designated for radio system acquisition - 511,722 Designated for dispatch system acquisition - - 322,395 Designated for vehicle and equipment replacement 1,888,321 - 5,782,483 Designated for employee leave payouts - - 6,780,656 Designated for booking fees - 1,391,059 Designated for law enforcement - 4,487,858 Designated for contract development services - 1,598,578 Designated for sphere of influence - 695,710 Designated for general plan update - 17,779 Designated for guaranteed investment contracts - 16,738,580 Designated for multi-species habitat plan - 200,000 Designated for spay/neuter program - - 266,812 Designated for unrealized gain on investments 1,071,732 - 2,995,764 Designated for other post employment benefits - - 787,914 Designated for mobile home park program - - 8,307 Total Fund Balances 149,083,142 82,210,066 634,730,270 Total Liabilities and Fund Balances $ 154,515,138 $ 100,392,557 $ 767,371,170 See Notes to Financial Statements 21 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2009 Fund balances of governmental funds $ 634,730,270 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. 686,573,417 Bond issuance cost is an expenditure in the governmental funds, but it is a deferred charge in the Statement of Net Assets. 5,976,334 Long-term liabilities and accrued employee benefits that have not been included in the governmental fund activity: Long-term liabilities (441,702,272) Accrued employee benefits (7,527,108) Accrued interest payable for the current portion of interest due on long-term liabilities has not been reported in the governmental funds. (7,049,738) 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. 51,772,435 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. 18,662,788 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. 2,000,000 Net assets of governmental activities $ 943,436,126 See Notes to Financial Statements 22 THIS PAGE INTENTIONALLY LEFT BLANK 23 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2009 Special Capital Revenue Funds Projects Funds Redevelopment General Fire District AgencV Revenues: Taxes $ 52,430,365 $ 22,433,547 $ 19,576,638 Licenses and permits 3,156,830 523,916 - Intergovernmental 1,172,644 19,390 - Charges for services 2,217,042 65,766 - Use of money and property 2,977,402 674,934 10,595,920 Fines and forfeitures 1,161,880 10,594 - Contributions 127,318 7,022 - Developer participation - - - Miscellaneous 3,705,542 431,316 296,891 Total Revenues 66,949,023 24,166,485 30,469,449 Expenditures: Current: General government 12,707,942 - 4,570,915 Public safety-police 27,283,591 - - Public safety-fire protection - 25,705,746 - Public safety-animal center 2,608,654 - - Community development 6,574,067 - 2,770,227 Community services 4,539,710 - - Engineering and public works 13,651,309 - - Capital outlay 1,581,815 233,675 20,913,348 Debt service: Principal retirement - - 4,844,676 Interest and fiscal charges - - 10,977,640 Total Expenditures 68,947,088 25,939,421 44,076,806 Excess(Deficiency)of Revenues Over(Under) Expenditures (1,998,065) (1,772,936) (13,607,357) Other Financing Sources(Uses): Transfers in 525,466 4,004,180 7,717,594 Transfers out (2,504,543) - (4,568,190) Long-term debt issued - - - Proceeds from sale of capital asset 208,950 - - Total Other Financing Sources (Uses) (1,770,127) 4,004,180 3,149,404 Net Change in Fund Balances (3,768,192) 2,231,244 (10,457,953) Fund Balances: Beginning of year, as originally reported 95,010,771 14,555,640 296,868,071 Restatements 1,072,653 (97,153) 8,021,981 Beginning of year, as restated 96,083,424 14,458,487 304,890,052 Net Change in Fund Balances (3,768,192) - (10,457,953) End of Year $ 92,315,232 $ 16,689,731 $ 294,432,099 See Notes to Financial Statements 24 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30,2009 Debt Service Funds Other Total Redevelopment Governmental Governmental Agency Funds Funds Revenues: Taxes $ 78,306,551 $ 15,406,657 $ 188,153,758 Licenses and permits - - 3,680,746 Intergovernmental - 12,659,430 13,851,464 Charges for services - 4,469,726 6,752,534 Use of money and property 3,477,112 4,188,926 21,914,294 Fines and forfeitures - - 1,172,474 Contributions - 649,984 784,324 Developer participation - 3,694,404 3,694,404 Miscellaneous - 1,211,116 5,644,865 Total Revenues 81,783,663 42,280,243 245,648,863 Expenditures: Current: General government 25,278,156 7,863,686 50,420,699 Public safety-police - 421,181 27,704,772 Public safety-fire protection - 45,783 25,751,529 Public safety-animal center - - 2,608,654 Community development 57,483 11,460,421 20,862,198 Community services - 9,194,920 13,734,630 Engineering and public works - 12,621,380 26,272,689 Capital outlay 2,801,721 14,333,386 39,863,945 Debt service: Principal retirement 6,987,711 17,536 11,849,923 Interest and fiscal charges 13,158,173 2,941 24,138,754 Total Expenditures 48,283,244 55,961,234 243,207,793 Excess(Deficiency)of Revenues Over(Under) Expenditures 33,500,419 (13,680,991) 2,441,070 Other Financing Sources(Uses): Transfers in - 4,059,146 16,306,386 Transfers out (9,411,660) (290,126) (16,774,519) Long-term debt issued 618,392 - 618,392 Proceeds from sale of capital asset - - 208,950 Total Other Financing Sources (Uses) (8,793,268) 3,769,020 359,209 Net Change in Fund Balances 24,707,151 (9,911,971) 2,800,279 Fund Balances: Beginning of year, as originally reported 126,859,864 92,125,598 625,419,944 Restatements (2,483,873) (3,561) 6,510,047 Beginning of year, as restated 124,375,991 92,122,037 631,929,991 Net Change in Fund Balances 24,707,151 (9,911,971) 2,800,279 End of Year $ 149,083,142 $ 82,210,066 $ 634,730,270 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 JUNE 30, 2009 Net change in fund balances-total governmental funds $ 2,800,279 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. 36,518,427 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. 11,821,547 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. 238,891 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. 2,000,000 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. (512,243) 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. 4,959,732 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. (1,703,914) Change in net assets of governmental activities $ 56,122,719 See Notes to Financial Statements 26 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 as restated $ 96,083,424 $ 96,083,424 $ 96,083,424 $ - Resources(Inflows): Taxes 55,237,370 52,969,000 52,430,365 (538,635) Licenses and permits 3,554,590 3,073,600 3,156,830 83,230 Intergovernmental 1,369,840 987,420 1,172,644 185,224 Charges for services 2,870,090 2,741,590 2,217,042 (524,548) Use of money and property 2,366,470 2,485,790 2,977,402 491,612 Fines and forfeitures 1,168,150 937,310 1,161,880 224,570 Contributions 22,160 113,840 127,318 13,478 Miscellaneous 2,969,440 3,807,630 3,705,542 (102,088) Transfers in 500,000 500,000 525,466 25,466 Proceeds from sale of capital asset 20,000 211,430 208,950 (2,480) Amounts Available for Appropriation 166,161,534 163,911,034 163,766,863 (144,171) Charges to Appropriation(Outflow): General government General overhead 3,864,842 3,719,480 3,528,582 190,898 Personnel overhead 397,048 642,980 (28,581) 671,561 City council 139,660 138,020 135,035 2,985 City manager 1,135,960 1,164,170 1,145,658 18,512 City clerk 2,650 2,030 1,933 97 Administrative services 328,880 303,230 297,710 5,520 Business licenses 319,160 316,910 311,997 4,913 City facilities 1,891,249 1,945,240 1,708,354 236,886 Finance 970,600 957,850 952,811 5,039 Geographic information systems 363,810 373,550 369,366 4,184 Management information services 3,015,739 2,869,970 2,748,829 121,141 Personnel 503,110 486,670 433,534 53,136 Purchasing 523,880 544,770 533,571 11,199 Risk management 214,750 197,150 187,634 9,516 Treasury management 7,590 4,390 4,264 126 Records management 784,380 716,680 692,929 23,751 Public safety-police Sheriff contract services 28,537,610 27,957,130 27,289,912 667,218 Public safety-animal center Animal care and services 2,578,395 2,675,659 2,675,659 - Community development Planning 2,677,270 2,752,770 2,704,868 47,902 Planning commission 17,610 17,710 12,480 5,230 Code enforcement 792,250 764,210 760,760 3,450 Administration 1,625,738 1,587,600 1,503,814 83,786 Building and safety 3,084,330 2,895,400 2,748,160 147,240 Community Services Administration 4,763,970 4,679,980 4,535,818 144,162 Park and recreation commission 4,180 5,020 3,892 1,128 Engineering and Public Works Engineering administration 780,568 846,490 818,590 27,900 Development management 1,412,350 1,452,580 1,385,633 66,947 Engineering-NPDES 543,500 509,400 423,368 86,032 Project management 767,720 708,180 708,042 138 Traffic management 272,760 284,510 280,680 3,830 Street and park maintenance 5,024,572 4,991,340 4,726,850 264,490 Vehicle and equipment maintenance 1,522,490 1,364,090 1,187,577 176,513 Facilities maintenance 4,395,673 4,413,990 4,302,035 111,955 Capital outlay 10,393,057 2,920,715 2,635,339 285,376 Transfers out 1,021,170 2,872,780 2,504,543 368,237 Total Charges to Appropriations 84,678,521 78,082,644 74,231,646 3,850,998 Budgetary Fund Balance,June 30(Budgetary Basis) $ 81,483,013 $ 85,828,390 89,535,217 $ 3,706,827 Encumbrances 2,780,015 Budgetary Fund Balance,June 30(GAAP Basis) $ 92,315,232 See Notes to Financial Statements 27 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated $ 14,458,487 $ 14,458,487 $ 14,458,487 $ - Resources(Inflows): Taxes 22,121,520 21,669,620 22,433,547 763,927 Licenses and permits 352,300 317,430 523,916 206,486 Intergovernmental 18,930 19,390 19,390 - Charges for services 136,230 73,580 65,766 (7,814) Use of money and property 360,930 441,970 674,934 232,964 Fines and forfeitures 25,000 7,750 10,594 2,844 Contributions 43,380 44,420 7,022 (37,398) Miscellaneous 109,550 359,750 431,316 71,566 Transfers in 2,735,550 4,601,340 4,004,180 (597,160) Proceeds from sale of capital asset 20,000 20,000 - (20,000) Amounts Available for Appropriation 40,381,877 42,013,737 42,629,152 615,415 Charges to Appropriation (Outflow): Public safety-fire protection 25,400,735 27,038,404 25,758,699 1,279,705 Capital outlay 3,157,001 625,090 573,227 51,863 Transfers out 727,720 597,160 - 597,160 Total Charges to Appropriations 29,285,456 28,260,654 26,331,926 1,928,728 Budgetary Fund Balance,June 30(Budgetary Basis) $ 11,096,421 $ 13,753,083 16,297,226 $ 2,544,143 Encumbrances 392,505 Budgetary Fund Balance,June 30(GAAP Basis) $ 16,689,731 See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30,2009 Business-Type Activities -Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Totals Service Funds Assets: Current: Cash and investments $ - $ 1,719,610 $ 1,719,610 $ 14,455,714 Receivables: Accounts 89,653 1,436,667 1,526,320 - Taxes 485 - 485 - Accrued interest - 1,905 1,905 15,495 Prepaid costs - 525 525 - Deposits - 1,477 1,477 - Total Current Assets 90,138 3,160,184 3,250,322 14,471,209 Noncurrent: Capital assets-net of accumulated depreciation 16,459,554 14,095,548 30,555,102 4,418,788 Total Noncurrent Assets 16,459,554 14,095,548 30,555,102 4,418,788 Total Assets $ 16,549,692 $ 17,255,732 $33,805,424 $ 18,889,997 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 67,394 $ 828,618 $ 896,012 $ 293,871 Accrued liabilities 43,104 11,067 54,171 - Deposits payable - 94,276 94,276 - Total Current Liabilities 110,498 933,961 1,044,459 293,871 Total Liabilities 110,498 933,961 1,044,459 293,871 Net Assets: Invested in capital assets 16,459,554 14,095,548 30,555,102 4,418,788 Restricted for public benefit- Municipal Utility - 680,598 680,598 - Unrestricted (20,360) 1,545,625 1,525,265 14,177,338 Total Net Assets 16,439,194 16,321,771 32,760,965 18,596,126 Total Liabilities and Net Assets $ 16,549,692 $ 17,255,732 $33,805,424 $ 18,889,997 Reconciliation of Net Assets to the Statement of Net Assets Net Assets per Statement of Net Assets- Proprietary Funds $32,760,965 Prior years'accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds (44,937) Current years'adjustments to reflect the consolidation of internal service activities related to enterprise funds (21,725) Net Assets per Statement of Net Assets $32,694,303 See Notes to Financial Statements 29 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS JUNE 30, 2009 Business-Type Activities -Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Totals Service Funds Operating Revenues: Sales and service charges $ 482,633 $ 9,080,824 $ 9,563,457 $ 13,590 Rents 377,832 - 377,832 - Miscellaneous 16,561 2,422 18,983 6,669 Total Operating Revenues 877,026 9,083,246 9,960,272 20,259 Operating Expenses: Salaries and benefits 739,096 187,157 926,253 - Maintenance and operations 444,722 9,065,860 9,510,582 1,008,446 Contractual services 154,380 952,668 1,107,048 - Depreciation expense 630,133 572,290 1,202,423 1,378,685 Total Operating Expenses 1,968,331 10,777,975 12,746,306 2,387,131 Operating Income(Loss) (1,091,305) (1,694,729) (2,786,034) (2,366,872) Nonoperating Revenues (Expenses): Admissions tax 18,156 - 18,156 - Interest revenue (100) 111,266 111,166 641,233 Total Nonoperating Revenues(Expenses) 18,056 111,266 129,322 641,233 Income(Loss)Before Transfers (1,073,249) (1,583,463) (2,656,712) (1,725,639) Transfers in 376,213 591,920 968,133 - Transfers out - (500,000) (500,000) - Changes in Net Assets $ (L 036) $ (1,491,543) $ (2,188,579) $ (1,725,639) Net Assets: Beginning of year $ 17,136,230 $ 17,422,326 $ 34,558,556 $ 20,321,765 Restatements - 390,988 390,988 - Beginning of year, as restated 17,136,230 17,813,314 34,949,544 20,321,765 Changes in Net Assets (697,036) (1,491,543) (2,188,579) (1,725,639) End of Fiscal Year $ 16,439,194 $ 16,321,771 $ 32,760,965 $ 18,596,126 Reconciliation of Changes in Net Assets to the Statement of Activities: Changes in Net Assets, per the Statement of Revenues, Expenses and Changes in Fund Net Assets-Proprietary Funds $ (2,188,579) Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds (21,725) Changes in Net Assets of Business-Type Activities per Statement of Activities $ (2,210,304) See Notes to Financial Statements 30 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2009 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 $ 833,816 $ 9,312,994 $ 10,146,810 $ 20,259 Cash paid to supplies for goods and services (566,892) (10,852,141) (11,419,033) (1,670,138) Cash paid to employees for services (711,883) (179,239) (891,122) - Net Cash Provided(Used) by Operating Activities (444,959) (1,718,386) (2,163,345) (1,649,879) Cash Flows from Non-Capital Financing Activities: Cash transfers out - (500,000) (500,000) - Cash transfers in 376,213 591,920 968,133 - Admissions tax received 17,671 - 17,671 Net Cash Provided (Used) by Non-Capital Financing Activities 393,884 91,920 485,804 - Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets - (778,462) (778,462) (2,047,650) Net Cash Provided(Used) by Capital and Related Financing Activities - (778,462) (778,462) (2,047,650) Cash Flows from Investing Activities: Interest received (100) 114,482 114,382 649,071 Net Cash Provided(Used) by Investing Activities (100) 114,482 114,382 649,071 Net Increase(Decrease) in Cash and Cash Equivalents (51,175) (2,290,446) (2,341,621) (3,048,458) Cash and Cash Equivalents at Beginning of Year 51,175 4,010,056 4,061,231 17,504,172 Cash and Cash Equivalents at End of Year $ - $ 1,719,610 $ 1,719,610 $ 14,455,714 Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (1,091,305) $ (1,694,729) $ (2,786,034) $ (2,366,872) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 630,133 572,290 1,202,423 1,378,685 (Increase)decrease in accounts receivable (43,210) 137,100 93,890 - (Increase)decrease in deposits receivable - (1,477) (1,477) - (Increase)decrease in prepaid costs - 44 44 2,734 Increase(decrease)in accounts payable 32,210 (832,180) (799,970) (664,426) Increase(decrease)in accrued liabilities 27,213 7,918 35,131 - Increase(decrease)in deposits payable - 92,648 92,648 - Total Adjustments 646,346 (23,657) 622,689 716,993 Net Cash Provided(Used) by Operating Activities $ (444,959) $ (1,718,386) $ (2,163,345) $ (1,649,879) Non-Cash Investing, Capital, and Financing Activities: None. See Notes to Financial Statements 31 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2009 Agency Funds Assets: Cash and investments $ 34,268,311 Receivables: Accounts 1,971 Taxes 214,310 Interest 14,208 Restricted assets: Cash and investments with fiscal agents 12,681,899 Total Assets $ 47,180,699 Liabilities: Accounts payable $ 80,491 Accrued liabilities 23,759 Deposits payable 18,415,277 Due to external parties/outside agencies 32,301 Payable to trustee 28,628,871 Total Liabilities $ 47,180,699 See Notes to Financial Statements 32 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2009 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) 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. 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. 34 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 120 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. • 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. 35 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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 36 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. Capital Assets Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items), 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 37 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) donation. In accordance with GASB Statement No. 34, the City has reported its general infrastructure assets. 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 3-8 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. 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 38 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 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. 39 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 $(441,702,272) long-term debt difference is as follows: Long-term debt: Tax allocation bonds payable $ (413,655,000) Unamortized bond premium (4,838,940) Loans payable (20,754,833) Leases payable (47,680) Claims and judgments payable (2,405,819) Net adjustment to reduce fund balance of total governmental funds to arrive at net assets of governmental activities $ (441,702,272) 40 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 $36,518,427 difference are as follows: Capital outlay $ 47,179,908 Capital contributions 5,485,609 Depreciation expense (14,042,897) Loss from disposition of capital assets (2,104,193) Net adjustment to increase net changes in fund balances of total governmental funds to arrive at changes in net assets of governmental activities $ 36,518,427 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 $11,821,547 difference are as follows: Issuance of long-term debt: Loans payable $ (618,392) Principal repayments: Tax allocation bonds 10,405,000 Loans payable 1,427,387 Lease payable 17,536 Amortization of bond premium and cost of issuance (45,386) Net changes in claims and judgments liability 635,402 Net adjustment to increase net changes in fund balance of total governmental funds to arrive at changes in net assets of governmental activities. $ 11,821,547 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. 41 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 2: Stewardship, Compliance and Accountability (Continued) 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 2008-2009, the following funds had no adopted annual budgets: • Transportation Enhancement Act • SB 140 • Families for Literacy Grant • Local Law Enforcement Block Grant • COPS in School Grant • Signal Coordination Grant • Teen Connection Program Grant • Code Enforcement Grant Program • Youth Enrichment Grant Program • Drink, Drive, Lose Grant • Henderson/Wardman Drainage • Federal Grant Fund —Drier • OTS Countdown Pedestrian Signals • Biane County Library Grant • Assessment District 82-1 • Assessment District 84-2 • Assessment District 86-2 • Proposition 12— Park Bond Act 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, 2009, amounted to $30,579,197. 42 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 2: Stewardship, Compliance and Accountability (Continued) c. Deficit Fund Balances or Net Assets The following funds have a deficit at June 30, 2009: Special Revenue Funds: Pedestrian Grant $ (98,787) Transportation Enhancement Act (530,912) Community Development Block Grant (198,245) California Literacy Campaign (43,245) COPS in Schools Grant (45,837) Department of Homeland Security Grant (70,860) OTS 2005 State Seat Belt Grant (51,208) Homeland Security Grant 2005 (25,410) Bicycle Transportation Acct. Grant (25,324) Capital Projects Funds: Assessment District 84-2 (3,785) Assessment District 86-2 (41,128) CFD 2001-01 (2,089,699) CFD 2003-01 Project Fund (1,244,402) 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. III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2009, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 608,304,351 Business-type activities 1,719,610 Fiduciary funds 46,950,210 Total Cash and Investments $ 656,974,171 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, 2009, the carrying amount of the City's deposits was $22,076,826 and the bank balance was $23,524,781. The $1,447,955 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 43 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 3: Cash and Investments (Continued) 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: • 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. 44 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 3: Cash and Investments (Continued) 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, 2009, 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, 2009. 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, 2009, the City's investments in external investment pools and money market mutual funds are unrated. 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, 2009, 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, 2009, 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 20% Federal Home Loan Bank 17% Federal Home Loan Mortgage Corporation 13% Federal National Mortgage Association 15% 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. 45 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 3: Cash and Investments (Continued) As of June 30, 2009, 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 $ 94,801,627 $ - $ - $ - $ 94,801,627 US Treasury 2,400,000 - - - 2,400,000 Federal Governmental Agencies Federal Farm Credit Bank - 5,064,065 62,187,512 57,332,516 124,584,093 Federal Home Loan Bank - - 68,512,953 38,785,670 107,298,623 Federal Home Loan Mortgage Corp. - - 57,522,028 26,000,875 83,522,903 Federal National Mortgage Assoc. - - 55,177,113 43,127,201 98,304,314 Certificates of Deposits 7,522,217 - 1,564,272 - 9,086,489 Investment Agreements 15,600,000 - - - 15,600,000 Money Market Mutual Funds 58,498,053 - - - 58,498,053 Investments with Fiscal Agents: Money Market Mutual Funds 40,801,243 - - - 40,801,243 $219,623,140 $ 5,064,065 $244,963,878 $165,246,262 $634,897,345 Note 4: Notes and Loans Receivables Notes and loans receivables consist of the following at June 30, 2009: 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, 2009, the loan receivable amounted to $300,220. 2. In September 1993, the Rancho Cucamonga Redevelopment Agency loaned $4,888,500 to the Southern California Housing Development Corporation (SCHDC) to enable the Corporation to purchase an apartment complex in which 42% of the units will be provided for low and moderate housing. The loan bears no interest. Principal payments of $162,950 begin September 1, 1994, and continue yearly until the maturity date of September 1, 2023, at which time all remaining amounts shall be paid. On an annual basis, the Agency can allow a credit equal to the payment, that would otherwise be due as long as all the terms of the note have been followed. The Agency loaned an additional $322,500 to SCHDC in March 1995, to assist with the down payment on property. If the revenues are in excess of the operating expenses, the excess will repay the note. It was not expected that the $322,500 would be repaid; therefore, an allowance account was set up for $322,500. The loan was nullified in August 2007, however the entry was not recorded until fiscal year ended June 30, 2009, as a fund balance restatement. The net balance at June 30, 2009, is zero. 3. 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, 2009, the outstanding balance remaining of $4,245,082, including accrued interest of $1,155,082. Accrued interest is offset by deferred revenue. 46 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 4: Notes and Loans Receivables (Continued) 4. 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. As of June 30, 2009, the advances paid against this line of credit amount to $8,300,099 and accrued interest amounts to $242,479 for a total of$8,542,578. Accrued interest is offset by deferred revenue. 5. 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, 2009, no payments have been required, with the outstanding balance remaining at$13,000,000. 6. 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, 2009, amounted to $21,638,113 and accrued interest amounts to $1,194,949, for a total balance of $22,833,062. Accrued interest is offset by deferred revenue. 7. 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, 2009, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to$875,214 for a total of$9,875,214. Accrued interest is offset by deferred revenue. 47 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 4: Notes and Loans Receivables (Continued) 8. 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, 2009, the advances paid against this line of credit amounted to $3,557,467 and accrued interest amounts to $117,794 for a total of $3,675,261. Accrued interest is offset by deferred revenue. 9. 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, 2009, the advances paid against this line of credit amounted to $565,788 and accrued interest amounts to $16,762, for a total of$582,550. Accrued interest is offset by deferred revenue. 10. 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 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, 2009, the advances paid against this line of credit amounted to $16,806,399, and accrued interest amounts to $322,141, for a total of$17,128,540. 11. 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, 2009, the outstanding balance amounts to $8,419,438, including accrued interest of $2,490,256. Accrued interest is offset by deferred revenue. 48 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 4: Notes and Loans Receivables (Continued) 12. 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, 2009, the outstanding balance amounts to $4,700,000. Total loans receivables at June 30, 2009, including accrued interest of $6,414,677, amounted to$93,301,945. Note 5: Capital Assets Capital asset activity for the year ended June 30, 2009, was as follows: Adjusted Beginning Beginning Ending Balance Adjustments* Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets,not being depreciated: Land $ 75,904,008 $ 1,366,335 $ 77,270,343 $ 5,926,000 $ $ $ 83,196,343 Right of way 217,733,877 - 217,733,877 5,485,609 223,219,486 Construction-in-progress 19,164,856 5,202,348 24,367,204 25,293,685 (28,688,253) 20,972,636 Total Capital Assets, Not Being Depreciated 312,802,741 6,568,683 319,371,424 36,705,294 (28,688,253) 327,388,465 Capital assets,being depreciated: Building Improvements 134,837,974 - 134,837,974 1,118,353 4,809,397 140,765,724 Improvement other than buildings 7,531,658 7,531,658 40,449 - 1,865,909 9,438,016 Equipment and vehicles 35,988,437 35,988,437 3,742,837 2,292,878 - 37,438,396 Furniture and fixtures 2,435,295 2,435,295 933,968 172,101 - 3,197,162 Infrastructure 355,296,553 355,296,553 12,202,251 2,938,196 22,012,947 386,573,555 Total Capital Assets, Being Depreciated 536,089,917 536,089,917 18,037,858 5,403,175 28,688,253 577,412,853 Less accumulated depreciation: Building improvements 19,527,764 19,527,764 3,047,047 - - 22,574,811 Improvement other than buildings 5,948,982 5,948,982 279,598 - 6,228,580 Equipment and vehicles 24,800,865 24,800,865 3,470,069 2,221,345 26,049,589 Furniture and fixtures 1,174,971 1,174,971 469,968 130,474 1,514,465 Infrastructure 150,203,948 150,203,948 8,185,555 947,835 157,441,668 Total Accumulated Depreciation 201,656,530 201,656,530 15,452,237 3,299,654 213,809,113 Total Capital Assets, Being Depreciated,Net 334,433,387 334,433,387 2,585,621 2,103,521 28,688,253 363,603,740 Governmental Activities Capital Assets,Net $ 647,236,128 $ 6,568,683 $ 653,804,811 $ 39,290,915 $2,103,521 $ - $ 690,992,205 *Adjustments were made to correct prior year land and construction-in-progress. 49 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Government Activities: General government $ 3,382,032 Public safety-police 543,931 Public safety-fire protection 693,941 Engineering and public works 8,763,322 Community development 49,696 Community services 609,975 Vehicle Replacement Fund 1,011,301 Computer Equip./Technology Replacement Fund 398,039 Total Governmental Activities $ 15,452,237 Adjusted Beginning Beginning Ending Balance Adjustments* Balance Increases Decreases Transfers Balance Business-Type Activities: Capital assets,not being depreciated: Land $ 5,451,015 $ $ 5,451,015 $ $ - $ $ 5,451,015 Construction-in-progress 4,092,313 4,092,313 - (4,092,313) - Total Capital Assets, Not Being Depreciated 9,543,328 9,543,328 - - (4,092,313) 5,451,015 Capital assets,being depreciated: Building improvements 26,452,533 (9,249,060) 17,203,473 - 17,203,473 Improvement other than buildings 4,741,621 (944,207) 3,797,414 - 3,797,414 Equipment and vehicles 683,034 (211,042) 471,992 25,807 - 497,799 Furniture and fixtures 6,003 92,556 98,559 - - 98,559 Infrastructure - 11,877,646 11,877,646 752,655 - 4,092,313 16,722,614 Total Capital Assets, Being Depreciated 31,883,191 1,565,893 33,449,084 778,462 - 4,092,313 38,319,859 Less accumulated depreciation: Building improvements 7,332,417 (868,722) 6,463,695 430,073 - - 6,893,768 Improvement other than buildings 3,015,355 (88,181) 2,927,174 189,871 - 3,117,045 Equipment and vehicles 484,935 (48,127) 436,808 13,735 - 450,543 Furniture and fixtures 5,737 39,816 45,553 266 - 45,819 Furniture and fixtures - 2,140,119 2,140,119 568,478 - 2,708,597 Total Accumulated Depreciation 10,838,444 1,174,905 12,013,349 1,202,423 - - 13,215,772 Total Capital Assets, Being Depreciated, Net 21,044,747 390,988 21,435,735 (423,961) - 4,092,313 25,104,087 Business-Type Activities Capital Assets, Net $ 30,588,075 $ 390,988 $ 30,979,063 $ (423,961) $ - $ - $ 30,555,102 *Adjustments were to restate capital assets at July 1, 2008 based on an asset count performed during the fiscal year. 50 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Business-Type Activities: Sports Complex $ 630,133 Municipal Utility 572,290 Total Business-Type Activites $ 1,202,423 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2009, was as follows: Due To/From Other Funds Due to Other Funds Redevelopment Nonmajor Agency Governmental Funds Capital Projects Funds Total Due From Other Funds: General $ 68,060 $ 2,719,822 $ 2,787,882 Redevelopment Agency- Capital Projects - 230,051 230,051 Nonmajor Funds 244,994 - 244,994 Total $ 313,054 $ 2,949,873 $ 3,262,927 Due to/from other funds were made to cover negative cash balance at June 30, 2009. Advances To/From Other Funds Advances from Other Funds Redevelopment Nonmajor Agency Governmental Funds Capital Projects Funds Total Advances to Other Funds: General $ 50,768,802 $ 300,000 $ 51,068,802 Redevelopment Agency- Capital Projects - 3,953,624 3,953,624 Total $ 50,768,802 $ 4,253,624 $ 55,022,426 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 $50,768,802 as of June 30, 2009, 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, 2009, accrued unpaid interest on these loans was $41,247,576. 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). 51 City of Rancho Cucamonga Notes to Financial Statements (Continued) 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, 2009, 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 $ - $ $ - $ 500,000 $ 25,466 $ 525,466 Fire District 2,128,330 - 1,875,850 - - 4,004,180 Redevelopment Agency- Capital Projects - 7,535,810 181,784 7,717,594 Sports Complex 376,213 - - - 376,213 Municipal Utility - 591,920 - - 591,920 Nonmajor Funds - 3,976,270 - 82,876 4,059,146 Total $ 2,504,543 $ 4,568,190 $ 9,411,660 $ 500,000 $ 290,126 $ 17,274,519 The General Fund transferred $376,513 to the Sports Complex to cover the budgeted amount and $2,128,330 to the Fire District to prefund the District's OPEB liability and to cover budgeted amounts. The Rancho Cucamonga Redevelopment Agency Debt Service Fund transferred $7,535,810 to the Rancho Cucamonga Redevelopment Agency Capital Project Fund and $1,875,850 to non- major funds to cover the cost of operations and capital projects. The Municipal Utility transferred $500,000 to the General Fund to cover the cost of operations. The Rancho Cucamonga Redevelopment Agency Capital Project Fund transferred $591,920 to the Rancho Cucamonga Redevelopment Agency Debt Service Fund to cover principal and interest payments on long-term debt and $3,976,270 to non-major funds to cover the cost of operation and capital projects. 52 City of Rancho Cucamonga Notes to Financial Statements (Continued) 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, 2009: Adjusted Balance Balance Outstanding Due Within July 1,2008 Adjustments` July 1,2008 Additions Repayments June 30,2009 One Year Bonds: Tax Allocation Refunding Bonds-1999 Issue $ 40,710,000 $ $ 40,710,000 $ $ 2,310,000 $ 38,400,000 $ 2,420,000 Tax Allocation Bonds 20011ssue 71,805,000 71,805,000 10,000 71,795,000 10,000 Tax Allocation Bonds 20041ssue 155,925,000 155,925,000 3,545,000 152,380,000 3,700,000 Tax Allocation Bonds 2007 Issue A&B 155,620,000 155,620,000 4,540,000 151,080,000 2,535,000 Total Bonds 424,060,000 424,060,000 10,405,000 413,655,000 8,665,000 Developer Loans: Federal Bureau of Reclamation 1,909,472 1,909,472 681,315 1,228,157 681,315 Price Club/Costco 7,245,823 (141,222) 7,104,601 618,392 441,396 7,281,597 - Bank of New York 12,549,755 - 12,549,755 - 304,676 12,245,079 332,013 Total Developer Loans 21,705,050 (141,222) 21,563,828 618,392 1,427,387 20,754,833 1,013,328 Capital Lease 65,216 65,216 - 17,536 47,680 18,393 Claims and judgments payable 3,041,221 3,041,221 521,360 1,156,762 2,405,819 540,537 Accrued employee benefits 7,014,865 7,014,865 3,573,412 3,061,169 7,527,108 3,281,426 Total $ 455,886,352 $ (141,222) $ 455,745,130 $ 4,713,164 $ 16,067,854 444,390,440 $ 13,518,684 Unamortized bond premium 4,838,940 $ 449,229,380 Adjustments were made to correct the loan balance as of July 1,2008. A description of individual components of long-term debt outstanding as of June 30, 2009, 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%. 53 City of Rancho Cucamonga Notes to Financial Statements (Continued) 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, 2009, amounted to$38,400,000. The following schedule illustrates the debt service requirements to maturity for the 1999 Tax Allocation Refunding Bonds as of June 30, 2009: 54 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 7: Long-Term Debt Obligations (Continued) Principal Interest 2009-2010 $ 2,420,000 $ 1,909,580 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 2014-2019 16,985,000 4,449,833 2019-2024 8,120,000 431,813 Total $ 38,400,000 $ 13,162,231 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 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. 55 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 7: Long-Term Debt Obligations (Continued) 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, 2009, amounted to $71,795,000. The following schedule illustrates the debt service requirements to maturity for the 2001 Tax Allocation Bonds as of June 30, 2009: Principal Interest 2009-2010 $ 10,000 $ 3,720,494 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 2014-2019 75,000 18,580,594 2019-2024 1,840,000 18,430,719 2024-2029 47,305,000 12,122,497 2029-2034 22,520,000 1,168,500 Total $ 71,795,000 $ 68,899,155 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. 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. 56 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 7: Long-Term Debt Obligations (Continued) 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, 2009, amounted to $152,380,000, plus unamortized bond premium of$3,981,851. The following schedule illustrates the debt service requirements to maturity for the 2004 Tax Allocation Bonds as of June 30, 2009: Principal Interest 2009-2010 $ 3,700,000 $ 6,635,590 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 2014-2019 25,480,000 26,089,065 2019-2024 43,305,000 19,388,241 2024-2029 19,500,000 12,091,616 2029-2034 43,780,000 5,116,275 Total $ 152,380,000 $ 94,041,872 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 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. 57 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 7: Long-Term Debt Obligations (Continued) 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, 2009, amounted to $151,080,000, plus unamortized bond premium of$857,089. Principal Interest 2009-2010 $ 2,535,000 $ 8,125,383 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 2014-2019 17,890,000 36,208,170 2019-2024 23,365,000 30,252,858 2024-2029 33,845,000 22,522,991 2029-2034 50,305,000 9,614,126 2034-2039 11,695,000 225,101 Total $ 151,080,000 $ 138,752,274 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, 2009 amounted to $1,228,157. 58 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 7: Long-Term Debt Obligations (Continued) The following schedule illustrates the debt service requirements to maturity as of June 30, 2009: Principal 2009-2010 $ 681,315 2010-2011 546,842 Total $ 1,228,157 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, 2009, amounted to $7,281,597. 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, 2009, amounted to$12,245,079. The following schedule illustrates the debt service requirements to maturity as of June 30, 2009: Principal Interest 2009-2010 $ 332,013 $ 1,067,987 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 2014-2019 3,051,767 3,948,233 2019-2024 4,689,645 2,310,355 2024-2029 2,517,745 282,255 Total $ 12,245,079 $ 11,554,921 59 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 7: Long-Term Debt Obligations (Continued) 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, 2009, the outstanding balance on the lease was $47,680. The following schedule illustrates the debt service requirements as of June 30, 2009: For the Year Ending: Total 2010 $ 20,476 2011 20,476 2012 10,236 Net Minimum Lease Payments 51,188 Less:Amount Representing Interest (3,508) Present Value of Net Minimum Lease Payments $ 47,680 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 $728,510,532 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 $97,883,189 and the debt service obligation on the bonds was $31,508,842. 60 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 8: Other Special Obligations The following issues of Residential Mortgage Revenue Bonds, Special Assessment District Bonds, Senior Lien Bonds and Subordinate Lien Bonds are not reflected in the Statement on 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, 2009, were as follows: Outstanding Amount at June 30, 2009 City of Rancho Cucamonga: Reassessment District 1999-1 $ 1,085,000 Assessment District 93-1 2,200,000 Community Facilities District No. 93-3 3,185,000 Community Facilities District No. 88-2 1,940,000 Community Facilities District No. 2000-01 1,130,000 Community Facilities District No. 2000-02 6,100,000 Community Facilities District No. 2001-01 Series A 9,635,000 Community Facilities District No. 2001-01 Series B 13,035,000 Community Facilities District No. 2003-01 Series 2003-A 865,000 Community Facilities District No. 2003-01 Series 2003-B 14,590,000 Community Facilities District No. 2000-03 2,840,000 Community Facilities District No. 2004-01 42,650,000 Community Facilities District No. 2006-01 5,700,000 Community Facilities District No. 2006-02 2,925,000 Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 3,101,290 Total $ 110,981,290 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. 61 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 9: Pension Plan Obligations (Continued) 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 9.816%. 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, 2009, the City's annual pension cost of $5,084,381 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2006, 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, 2007 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 3.25% 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 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 6/30/2007 $ 4,296 100% $ - 6/30/2008 4,670 100% 6/30/2009 5,084 100% 62 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 9: Pension Plan Obligations (Continued) 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 6/30/2005 $ 67,629 $ 72,000 $ (4,371) 93.9 % $ 18,977 23.0 % 6/30/2006 76,040 80,467 (4,427) 94.5 % 22,184 20.0 % 6/30/2007 85,947 90,860 (4,913) 94.6 % 25,435 19.3 % The informatiion above is based on 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 14.697% for the non-safety employees and 23.866% for safety employees. The contribution requirements of plan members and the City are established and may be amended by PERS. Annual Pension Cost(APC) For the year ended June 30, 2009, the Fire District's annual pension cost for the miscellaneous and safety employees of $3,591,096 was equal to the Fire District's required and actual contributions. The required contribution was determined as part of the June 30, 2006, 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 6/30/2007 $ 2,859 100% $ - 6/30/2008 3,331 100% - 6/30/2009 3,591 100% - 63 City of Rancho Cucamonga Notes to Financial Statements (Continued) 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. 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, 2009, the City's annual required contribution is $1,482,583. The City's actual contribution was $1,482,583. The required contribution was based on the June 30, 2006, 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. 64 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 10: PARS Retirement Enhancement Plan (Continued) 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 6/30/2007 $ 1,187 100% $ - 6/30/2008 1,325 100% - 6/30/2009 1,483 100% - Schedule Of Funding Progress (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 07/01/2004 $ 1,640 $ 7,999 $ 6,359 20.5% $ 17,031 37.3% 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. 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 (CalPERS). 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 $3,382,000 were made during the 2008-2009 fiscal year to cover the required contribution rate of 17.8% of annual covered payroll (annual payroll of active employees covered by the plan) and to prefund benefits. 65 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 11: Other Post-Retirement Benefits (Continued) As a result, the Fire District calculated and recorded a Net OPEB Asset, representing the difference between the Annual Required Contribution (ARC) and actual contributions, as presented below: Annual required contribution (ARC) $ 1,382,000 Adjustment to ARC - Annual OPEB cost 1,382,000 Contributions made (3,382,000) (Decrease) increase in Net OPEB asset (2,000,000) Net OPEB obligation (asset)June 30, 2008 Net OPEB obligation (asset)June 30, 2009 $ (2,000,000) The contribution rate of 17.8% is based on the ARC of$1,382,000, 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 2008-2009, the Fire District's annual OPEB cost (expense) of $1,382,000 was equal to the ARC. Since this fiscal year is the transition year, information on the annual OPEB cost, percentage of annual OPEB cost contributed, and net OPEB obligation is only available for the current fiscal year, as presented below: 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) 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. Unfunded UAAL as a Actuarial Actuarial Actuarial Percent of Type of Valuation Value of Accrued Funded Covered Covered Interest Valuation Date Assets Liability Ratio Payroll Payroll Rate Actual 6/30/2007 $ - $ 16,515,000 0.0% $ 7,769,000 212.6% 7.75% 66 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 11: Other Post-Retirement Benefits (Continued) 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, 2007 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, 2009, was twenty-eight years. The number of active participants is 140. Note 12: Fund Equity and Net Assets Restatement Beginning fund balances have be restated as follows: Major governmental funds: General Fund To correct pass-through payments relating to prior years $ 1,229,492 To correct expenses relating to prior years (156,839) Fire District To correct property tax administration fees relating to prior years (97,153) Redevelopment Agency-Capital Project Fund To record loans receivable not properly recorded in prior years 8,021,981 Redevelopment Agency- Debt Service Fund To correct pass-through payments relating to prior years (2,483,873) Non-major governmental fund: Transportation To correct developer fees collected in the prior years (3,561) Total Fund Balance Restatements $ 6,510,047 Major Proprietary Funds: Municipal Utility To correct the balance of capital assets at July 1, 2008 based on an asset count performed during the fiscal year. $ 390,988 67 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 12: Fund Equity and Net Assets Restatement (Continued) Beginning net assets have be restated as follows: Governmental Activities: To correct pass-through payments relating to prior years $ (1,254,381) To correct expenses relating to prior years (156,839) To correct property tax administration fees relating to prior years (97,153) To record loans receivable not properly recorded in prior years 8,021,981 To correct developer fees relating to prior years (3,561) To correct developer loan payable balance at July 1, 2008 141,222 To record capital assets not properly recorded in prior years 6,568,683 Total Governmental Activities 13,219,952 Business-type Activities: To correct the balance of capital assets at July 1, 2008 based on an asset count performed during the fiscal year 390,988 Total Business-type Activities Total Net Asset Restatements $ 13,610,940 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 $750,000 and $400,000 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, 2009, 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. 68 City of Rancho Cucamonga Notes to Financial Statements (Continued) 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, 2009, 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, 2008, 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$9,368,338 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 2007-2008 $ 2,658,017 $ 1,287,449 $ (904,245) $ 3,041,221 2008-2009 3,041,221 (48,515) (586,887) 2,405,819 69 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 14: West End Communications Financing Authority The West End Communications Financing Authority (WECFA)was formed by a joint exercise of powers agreement dated February 21, 1990, and amended February 7, 1991, pursuant to the Joint Exercise of Powers Law of the State of California. It was established for the purpose of financing public improvements through the acquisition, construction and improvement thereof by the WECFA. Separate financial statements may be obtained from the WECFA. The Authority's membership consists of the City of Chino, the City of Ontario, the City of Rancho Cucamonga, the City of Montclair, the City of Upland, the Chino Valley Fire District, the Cucamonga County Water District, Ontario International Airport and the Rancho Cucamonga Fire Protection District. The City of Rancho Cucamonga's share of participation and ownership is 10.8% and 11.79%, respectively. The Fire District's share of participation and ownership is 4.7% and 5.5%, respectively. The Board of Directors is comprised of the Chief Executive Officer and Finance Director of each member agency. Each Director has one vote over budgeting and financial matters, except for the Cucamonga County Water District and Ontario International Airport, who have chosen not to participate on the Board of Directors. The WECFA is a public entity separate from the agencies, and is not included in the financial statements of those entities. The City of Rancho Cucamonga does not have an equity interest in the WECFA. Note 15: 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, 2009, the Agency made payments totaling $528,055. Note 16: Subsequent Events Local Government Revenues Withheld by the State of California On July 24, 2009, the legislation approved the "borrowing" of up to 8 percent of the local property tax under Proposition 1A (2004). The City and Fire District are participants in the Proposition 1A Securitization Program offered by California Communities, a joint powers authority sponsored by the League of California Cities and California State Association of Counties. California Communities sold bonds on November 10, 2009 securitizing the future payments by the State and will remit the proceeds of the bonds to the local governments who opt to participate in the program. The purchase price paid on the sale of the City's and Fire District's receivable is 100% or $2,217,049 and $1,203.062, respectively. Participants of the Securitization program have no obligation on the bonds and no credit exposure to the State. Distribution of the proceeds to the participants is expected 50% on January 15, 2010 and 50% on May 3, 2010. 70 City of Rancho Cucamonga Notes to Financial Statements (Continued) Note 16: Subsequent Events (Continued) SERAF Tax Increment Revenue Shift for fiscal year 2009-2010 On July 23, 2009, the California Legislature passed SB 26, requiring a shift in tax increment revenues during fiscal years 2009-2010 and 2010-2011 to be deposited into the county"Supplemental" Educational Revenue Augmentation Fund (SERAF)and which is to be distributed to meet the State's Prop 98 obligations to schools. It is estimated that the Agency's share of the SERAF shift for fiscal year 2009-2010 and 2010-2011 will amount to approximately $32,079,051 and $6,604,511, respectively. In October 2009, the California Redevelopment Association and its member agencies filed a legal action in an attempt to stop these amounts from having to be paid. As of the date of this report, no legal determination has been made by the courts on that action. 71 THIS PAGE INTENTIONALLY LEFT BLANK 72 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 of 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. 73 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; however, full implementation of City library services did not begin until September 1994. Metrolink Fund - Established to account for the commuter rail project (Metrolink Station) being funded by a combined source of State Proposition 108 (Passenger Rail & Clean Air Bond Act of 1990) and San Bernardino County Measure I revenues allotted to the City through an agreement with San Bernardino Associated Governments (SANBAG). California Literacy Program Fund - The California Literacy Campaign Grant is administered by the State Library of California for the purpose of promoting literacy. Families for Literacy Grant Fund - Funded by the California State Library through a competitive grant process, the Families for Literacy Program provides monies to staff programs targeting 0 through 5 year old youngsters of illiterate parents. The emphasis on this program is to break the cycle of illiteracy by creating 'reading ready" youngsters by the time they enter the school system. The applying agencies must have an existing Adult Literacy Program. No other matching funds are required 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. 74 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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. Local Law Enforcement Block Grant Fund - Established to account for one-time federal grants awarded by the Bureau of Justice Assistance in 2000, 2001, and 2002. The total grant awards were $84,172, $83,118, and $64,121, respectively, and had matching requirements ranging from 9% to 11%. The funds were used to purchase radios for the County-wide network system (Motorola MTS 2000 portable radios), to purchase pre-emptive devices and thermal imaging cameras, and for construction of a helipad on the roof of the Public Safety Building. 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. 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. 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. AB2928 Traffic Congestion Relief Fund - Established to account for the revenue and disbursement of State AB 2928 funds allocated for transportation purposes. 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. 75 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Signal Coordination Grant Fund — The Signal Coordination Grant fund is comprised of grant monies received from the San Manuel Band of Mission Indians for traffic congestion relief projects. The monies received represent a one-time discretionary grant of funds to various municipalities within San Bernardino County for construction of transportation related projects. Congestion Mitigation Fund — Established to account for monies provided by the Federal Highway Administration as part of its Congestion Mitigation and Air Quality (CMAQ) Improvement Program. The federal funds are administered by the California Department of Transportation and are available for surface transportation and other related projects that contribute to air quality improvements and reduce congestion. 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. Code Enforcement Grant Program Fund - This grant was awarded by the State of California Department of Housing to purchase various equipment and contract services to improve current Code Enforcement staff equipment, services to the community and staff safety. There are no matching funds required for this grant. Youth Enrichment Grant Program Fund - The Youth Enrichment Services (YES) program is a three-year operational grant addressing the delivery of programs and services to families with children ages 0-5. It will focus on four main service areas at three new locations. Year 1 will focus on the Mulberry Learning Center, Year 2-Lions East Community Center and Year 3-the proposed Etiwanda Learning Center. The YES program is funded by the Children and Families Commission for San Bernardino County. The current year's budget reflects funding for Year 2. 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." 76 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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. 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. OTS Countdown Pedestrian Signals Fund - This project utilizes State of California Office of Traffic Safety grant funds to obtain countdown pedestrian signals for installation at approximately 13 signalized intersections (not on the Federal Aid Highway System). A portion of these funds may also be utilized by staff to attend traffic and transportation related conferences. 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 for the 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. Biane County Library Grant - The Biane County Library Grant fund consists of allocations received from County Supervisor Paul Biane through County Supervisor discretionary funds. The allocations are used for the enhancement of library services at Rancho Cucamonga Public Library, which are available to all San Bernardino County residents. The amount varies from year to year, as does the specific project the funds are contracted to provide. 77 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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. 78 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. 79 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. Proposition 12 - Park Bond Act Fund — The Block Grant Program funds are for the acquisition and/or development of high priority projects that satisfy the most urgent park and recreation needs, with emphasis on unmet needs in the most heavily populated and more economically disadvantaged areas within each jurisdiction. These funds are allocated on the basis of population. The Program requires a minimum local match of 30% and will be used for the development of Central Park. The Per Capita Program is intended to meet the urgent need for safe, open and accessible local park and recreational facilities for increased recreational opportunities that provide positive alternatives to social problems. These funds are allocated on the basis of population. There are no matching requirements under this Program. 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. 80 THIS PAGE INTENTIONALLY LEFT BLANK 81 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Park Gas Tax SB 325 Recreation Development Assets: Cash and investments $ 1,972,013 $ 102 $ 2,275,530 $ 11,548,192 Receivables: Accounts 222,575 - 73,306 15,702 Taxes - - 12 - Accrued interest 1,889 7 2,176 12,417 Deferred loans - - - - Grants - - - - Prepaid costs - - 14,911 - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,196,477 $ 109 $ 2,365,935 $ 11,576,311 Liabilities and Fund Balances: Liabilities: Accounts payable $ 280,294 $ - $ 179,446 $ 170,734 Accrued liabilities 82,199 - 143,896 5,161 Deferred revenues - - - - Unearned revenues - - 135,033 1,095 Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - 300,000 Total Liabilities 362,493 - 458,375 476,990 Fund Balances: Reserved: Reserved for encumbrances 4,273 - - 1,879,321 Reserved for prepaid costs - - 14,911 - Unreserved: Designated for capital projects 20,480 - - 2,556,247 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 7,792 - 19,294 98,067 Undesignated 698,174 109 1,873,355 6,565,686 Total Fund Balances 1,833,984 109 1,907,560 11,099,321 Total Liabilities and Fund Balances $ 2,196,477 $ 109 $ 2,365,935 $ 11,576,311 82 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds Landscape Lighting Maintenance Beautification Districts Districts Transportation Assets: Cash and investments $ 1,633,135 $ 6,677,564 $ 11,356,786 $ 19,404,749 Receivables: Accounts - - - 129,519 Taxes - 44,045 169,232 - Accrued interest - 7,236 12,460 18,734 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,633,135 $ 6,728,845 $ 11,538,478 $ 19,553,002 Liabilities and Fund Balances: Liabilities: Accounts payable $ 23,304 $ 155,071 $ 544,490 $ 300,962 Accrued liabilities - - 149,749 25,738 Deferred revenues - - - - Unearned revenues 93,407 - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - 85,802 - - Advances from other funds - - - - Total Liabilities 116,711 240,873 694,239 326,700 Fund Balances: Reserved: Reserved for encumbrances 202,648 - 120,105 2,050,498 Reserved for prepaid costs - - - - Unreserved: Designated for capital projects 809,088 - - 3,746,542 Designated for vehicle and equipment replacement - - - - Designated for working capital - 1,294,510 5,117,375 - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 13,868 56,587 88,301 164,786 Undesignated 490,820 5,136,875 5,518,458 13,264,476 Total Fund Balances 1,516,424 6,487,972 10,844,239 19,226,302 Total Liabilities and Fund Balances $ 1,633,135 $ 6,728,845 $ 11,538,478 $ 19,553,002 83 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Transportation Community Pedestrian Enhancement Development Assessment Grant Act Block Grant Administration Assets: Cash and investments $ - $ - $ - $ 1,092,252 Receivables: Accounts - - - 46 Taxes - - - - Accrued interest - - - 1,121 Deferred loans - - 384,480 - Grants 98,787 530,912 196,301 - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 98,787 $ 530,912 $ 580,781 $ 1,093,419 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 51,872 $ 8,288 Accrued liabilities - - 14,921 32,282 Deferred revenues 98,787 530,912 196,301 - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - 384,480 - Due to other funds 98,787 530,912 131,452 - Advances from other funds - - - - Total Liabilities 197,574 1,061,824 779,026 40,570 Fund Balances: Reserved: Reserved for encumbrances 70,081 - 61,096 - Reserved for prepaid costs - - - - 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 - - - 9,277 Undesignated (168,868) (530,912) (259,341) 1,043,572 Total Fund Balances (98,787) (530,912) (198,245) 1,052,849 Total Liabilities and Fund Balances $ 98,787 $ 530,912 $ 580,781 $ 1,093,419 84 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds San Sevaine/ South Etiwanda Air Quality Etiwanda Drainage SB 140 Improvement Drainage Assets: Cash and investments $ 1,117,586 $ 37,004 $ 390,568 $ 18,358 Receivables: Accounts - - - - Taxes - - - - Accrued interest 1,198 - 456 20 Deferred loans - - - - Grants - - 54,493 - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,118,784 $ 37,004 $ 445,517 $ 18,378 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 20,013 $ - Accrued liabilities - - 1,340 - Deferred revenues - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 21,353 - Fund Balances: Reserved: Reserved for encumbrances - - 1,500 - Reserved for prepaid costs - - - - Unreserved: Designated for capital projects - - 216,000 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments 9,490 314 3,318 156 Undesignated 1,109,294 36,690 203,346 18,222 Total Fund Balances 1,118,784 37,004 424,164 18,378 Total Liabilities and Fund Balances $ 1,118,784 $ 37,004 $ 445,517 $ 18,378 85 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Lower Masi Etiwanda Commerce Library Drainage Center Measure I Services Assets: Cash and investments $ 579,718 $ 8,526 $ 4,304,892 $ 4,707,967 Receivables: Accounts - - 234,394 50,265 Taxes - - - 1,480,483 Accrued interest 621 9 4,615 5,073 Deferred loans - - - - Grants - - - - Prepaid costs - - - 400 Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - 290,125 - - Total Assets $ 580,339 $ 298,660 $ 4,543,901 $ 6,244,188 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 161,650 $ 113,187 Accrued liabilities - - 9,793 130,400 Deferred revenues - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 171,443 243,587 Fund Balances: Reserved: Reserved for encumbrances 85,250 - 259,983 22,311 Reserved for prepaid costs - - - 400 Unreserved: Designated for capital projects 5,000 - 1,209,935 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - 224,470 Designated for C&D waste programs - - - - Designated for unrealized gain on investments 4,923 72 36,558 39,976 Undesignated 485,166 298,588 2,865,982 5,713,444 Total Fund Balances 580,339 298,660 4,372,458 6,000,601 Total Liabilities and Fund Balances $ 580,339 $ 298,660 $ 4,543,901 $ 6,244,188 86 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds California Literacy Families for Asset Metrolink Program Literacy Grant Forfeiture Assets: Cash and investments $ - $ - $ - $ 672,270 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - 235 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ - $ - $ - $ 672,505 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 308 $ - $ 35,000 Accrued liabilities - 5,071 - - Deferred revenues - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - 37,866 - - Advances from other funds - - - - Total Liabilities - 43,245 - 35,000 Fund Balances: Reserved: Reserved for encumbrances - 58 - - Reserved for prepaid costs - - - - 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 - - - 5,708 Undesignated - (43,303) - 631,797 Total Fund Balances - (43,245) - 637,505 Total Liabilities and Fund Balances $ - $ - $ - $ 672,505 87 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Used Oil Local Law Teen Recycling Enforcement COPS Connection Grant Block Grant Program Grant Program Grant Assets: Cash and investments $ 5,354 $ - $ 170,550 $ 427 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 290 - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,354 $ - $ 170,840 $ 427 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,018 $ - $ - $ - Accrued liabilities 2,135 - - - Deferred revenues - - - - Unearned revenues 2,154 - 53,995 - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 5,307 - 53,995 - Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - 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 46 - 1,448 427 Undesignated 1 - 115,397 - Total Fund Balances 47 - 116,845 427 Total Liabilities and Fund Balances $ 5,354 $ - $ 170,840 $ 427 88 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds Library AB 2928 Services& Traffic COPS in Drainage Technologies Congestion School Grant Facilities Act Relief Assets: Cash and investments $ - $ 6,304,147 $ 34,791 $ - Receivables: Accounts - 5,160 - - Taxes - - - - Accrued interest - 6,734 - - Deferred loans - - - - Grants 45,837 - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 45,837 $ 6,316,041 $ 34,791 $ - Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 149,725 $ 20,115 $ - Accrued liabilities - 4,227 - - Deferred revenues 45,837 - - - Unearned revenues - 5,102 - - Deposits payable - - - - Due to other governments - - - - Due to other funds 45,837 - - - Advances from other funds - - - - Total Liabilities 91,674 159,054 20,115 - Fund Balances: Reserved: Reserved for encumbrances - 647,277 - - Reserved for prepaid costs - - - - Unreserved: Designated for capital projects - 2,978,777 - - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs - - - - Designated for unrealized gain on investments - 53,534 295 - Undesignated (45,837) 2,477,399 14,381 - Total Fund Balances (45,837) 6,156,987 14,676 - Total Liabilities and Fund Balances $ 45,837 $ 6,316,041 $ 34,791 $ - 89 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Litter Signal Reduction Coordination Congestion Foothill Blvd. Grant Grant Mitigation Maintenance Assets: Cash and investments $ 22,863 $ - $ - $ 235,643 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 22,863 $ - $ - $ 235,643 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 12,642 Accrued liabilities - - - 1,226 Deferred revenues - - - - Unearned revenues 22,716 - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 22,716 - - 13,868 Fund Balances: Reserved: Reserved for encumbrances - - - 1,325 Reserved for prepaid costs - - - - 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 147 - - 2,002 Undesignated - - - 218,448 Total Fund Balances 147 - - 221,775 Total Liabilities and Fund Balances $ 22,863 $ - $ - $ 235,643 90 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds Code Youth Enforcement Enrichment The Big Read Drink, Drive, Grant Program Grant Program Library Grant Lose Grant Assets: Cash and investments $ - $ - $ 11,745 $ 15,483 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ - $ - $ 11,745 $ 15,483 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - 1,645 15,383 Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - - 1,645 15,383 Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - 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 - - 100 100 Undesignated - - 10,000 - Total Fund Balances - - 10,100 100 Total Liabilities and Fund Balances $ - $ - $ 11,745 $ 15,483 91 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Department of Public Henderson/ Homeland Resource Proposition Wardman Security Grant Grants 1 B Drainage Assets: Cash and investments $ - $ 16,641 $ 4,826,909 $ 814,985 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 5,183 - Deferred loans - - - - Grants 70,860 - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 70,860 $ 16,641 $ 4,832,092 $ 814,985 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,057 $ 16,500 $ 1,779,465 $ - Accrued liabilities - - - - Deferred revenues 70,860 - - - Unearned revenues - 34 2,820,672 - Deposits payable - - - - Due to other governments - - - - Due to other funds 69,803 - - - Advances from other funds - - - - Total Liabilities 141,720 16,534 4,600,137 - Fund Balances: Reserved: Reserved for encumbrances - - 2,011,594 - Reserved for prepaid costs - - - - 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 - 107 - 6,921 Undesignated (70,860) - (1,779,639) 808,064 Total Fund Balances (70,860) 107 231,955 814,985 Total Liabilities and Fund Balances $ 70,860 $ 16,641 $ 4,832,092 $ 814,985 92 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds Proposition 42 OTS Integrated -Traffic Countdown Waste Federal Grant Congestion Pedestrian Management Fund -Dreier Relief Signals Assets: Cash and investments $ 3,423,292 $ 13,661 $ 877,935 $ - Receivables: Accounts 1,427 - - - Taxes 254,645 - - - Accrued interest 3,659 - 941 - Deferred loans - - - - Grants - - 358,172 - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 3,683,023 $ 13,661 $ 1,237,048 $ - Liabilities and Fund Balances: Liabilities: Accounts payable $ 3,679 $ 13,545 $ - $ - Accrued liabilities 32,321 - - - Deferred revenues - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 36,000 13,545 - - Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - Unreserved: Designated for capital projects 100,000 - 450,000 - Designated for vehicle and equipment replacement - - - - Designated for working capital - - - - Designated for C&D waste programs 77,694 - - - Designated for unrealized gain on investments 35,035 116 7,456 - Undesignated 3,434,294 - 779,592 - Total Fund Balances 3,647,023 116 1,237,048 - Total Liabilities and Fund Balances $ 3,683,023 $ 13,661 $ 1,237,048 $ - 93 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Special Revenue Funds Justice OTS 2005 Senior Assistance State Seatbelt Biane County Transportation Grant Grant Library Grant Service Assets: Cash and investments $ 1,909 $ - $ - $ 180,827 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - 202 Deferred loans - - - - Grants - 51,208 - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 1,909 $ 51,208 $ - $ 181,029 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 14,674 Accrued liabilities - - - - Deferred revenues - 51,208 - - Unearned revenues 1,897 - - 165,191 Deposits payable - - - - Due to other governments - - - - Due to other funds - 51,208 - - Advances from other funds - - - - Total Liabilities 1,897 102,416 - 179,865 Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - 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 12 - - 1,164 Undesignated - (51,208) - - Total Fund Balances 12 (51,208) - 1,164 Total Liabilities and Fund Balances $ 1,909 $ 51,208 $ - $ 181,029 94 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) Special Revenue Funds Capital Projects Funds Homeland Bicycle Security Grant Transportation Assessment Assessment 2005 Acct. Grant District 82-1 District 84-1 Assets: Cash and investments $ - $ - $ 12,012 $ 1,025,057 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 13 1,099 Deferred loans - - - - Grants 25,410 25,324 - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 25,410 $ 25,324 $ 12,025 $ 1,026,156 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues 25,410 25,324 - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds 25,410 25,324 - - Advances from other funds - - - - Total Liabilities 50,820 50,648 - - Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - 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 - - 102 8,705 Undesignated (25,410) (25,324) 11,923 1,017,451 Total Fund Balances (25,410) (25,324) 12,025 1,026,156 Total Liabilities and Fund Balances $ 25,410 $ 25,324 $ 12,025 $ 1,026,156 95 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Capital Projects 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 $ 79 $ - $ 63 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - - 91,935 581,274 Total Assets $ 79 $ - $ 91,998 $ 581,274 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Deposits payable 3,864 - - - Due to other governments - - - - Due to other funds - 41,128 - 22,730 Advances from other funds - - - - Total Liabilities 3,864 41,128 - 22,730 Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - 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 (3,785) (41,128) 91,998 558,544 Total Fund Balances (3,785) (41,128) 91,998 558,544 Total Liabilities and Fund Balances $ 79 $ - $ 91,998 $ 581,274 96 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 (Continued) 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 $ 19,250 $ 452,100 $ 5,629 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - 485 - - Deferred loans - - - - Grants - - - 1,498,042 Prepaid costs - - - - Due from other funds - - - 244,994 Restricted assets: Cash and investments with fiscal agents 2,231,192 18,124 169,204 - Total Assets $ 2,250,442 $ 470,709 $ 174,833 $ 1,743,036 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 26,019 $ 6,128 Accrued liabilities - - - - Deferred revenues - - - 1,498,042 Unearned revenues - - - - Deposits payable - - - - 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 - - - - Reserved for prepaid costs - - - - 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 163 - - - Undesignated 2,250,279 (2,089,699) (1,244,402) (1,498,042) Total Fund Balances 2,250,442 (2,089,699) (1,244,402) (1,498,042) Total Liabilities and Fund Balances $ 2,250,442 $ 470,709 $ 174,833 $ 1,743,036 97 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Capital Projects Funds Proposition 12 CFD 2004-01 CFD 2006-01 -Park Bond Rancho CFD 2003-01 Vintner's Act Etiwanda Cultural Center Grove Assets: Cash and investments $ - $ - $ - $ 1,746 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 36 - 2 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Due from other funds - - - - Restricted assets: Cash and investments with fiscal agents - 1,157,685 221,350 2,976,869 Total Assets $ - $ 1,157,721 $ 221,350 $ 2,978,617 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Deposits payable - - - - Due to other governments - - - - Due to other funds - 28,869 17,837 - Advances from other funds - - - - Total Liabilities - 28,869 17,837 - Fund Balances: Reserved: Reserved for encumbrances - - - - Reserved for prepaid costs - - - - 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 - 40 - 15 Undesignated - 1,128,812 203,513 2,978,602 Total Fund Balances - 1,128,852 203,513 2,978,617 Total Liabilities and Fund Balances $ - $ 1,157,721 $ 221,350 $ 2,978,617 98 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2009 Capital Projects Funds CFD 2006-02 Total Nonmajor Amador on Governmental Route 66 Funds Assets: Cash and investments $ 5,556 $ 86,275,866 Receivables: Accounts - 732,394 Taxes - 1,948,417 Accrued interest 6 86,917 Deferred loans - 384,480 Grants - 2,955,346 Prepaid costs - 15,311 Due from other funds - 244,994 Restricted assets: Cash and investments with fiscal agents 11,074 7,748,832 Total Assets $ 16,636 $ 100,392,557 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 4,089,186 Accrued liabilities - 640,459 Deferred revenues - 2,542,681 Unearned revenues - 3,318,324 Deposits payable - 3,864 Due to other governments - 384,480 Due to other funds - 2,949,873 Advances from other funds - 4,253,624 Total Liabilities - 18,182,491 Fund Balances: Reserved: Reserved for encumbrances - 7,417,320 Reserved for prepaid costs - 15,311 Unreserved: Designated for capital projects - 12,092,069 Designated for vehicle and equipment replacement - 1,103,265 Designated for working capital - 6,636,355 Designated for C&D waste programs - 77,694 Designated for unrealized gain on investments 47 676,469 Undesignated 16,589 54,191,583 Total Fund Balances 16,636 82,210,066 Total Liabilities and Fund Balances $ 16,636 $ 100,392,557 99 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Park Gas Tax SB 325 Recreation Development Revenues: Taxes $ - $ - $ - $ - Intergovernmental 2,770,630 - - - Charges for services - - 2,809,464 - Use of money and property 59,275 220 814,559 507,120 Contributions - - 430,635 - Developer participation - - - 818,250 Miscellaneous - - 156,924 - Total Revenues 2,829,905 220 4,211,582 1,325,370 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - 310,662 Community services - - 4,771,604 - Engineering and public works 3,091,625 - - - Capital outlay - - - 2,448,877 Debt service: Principal retirement 17,536 - - - Interest and fiscal charges 2,941 - - - Total Expenditures 3,112,102 - 4,771,604 2,759,539 Excess (Deficiency)of Revenues Over(Under) Expenditures (282,197) 220 (560,022) (1,434,169) Other Financing Sources (Uses): Transfers in - - 234 - Transfers out - (6,440) (17) - Total Other Financing Sources (Uses) - (6,440) 217 - Net Change in Fund Balances (282,197) (6,220) (559,805) (1,434,169) Fund Balances Beginning of year, as originally reported 2,116,181 6,329 2,467,365 12,533,490 Restatements - - - - Beginning of year, as restated 2,116,181 6,329 2,467,365 12,533,490 Net Change in Fund Balances (282,197) (6,220) (559,805) (1,434,169) End of Year $ 1,833,984 $ 109 $ 1,907,560 $11,099,321 100 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds Landscape Lighting Maintenance Beautification Districts Districts Transportation Revenues: Taxes $ - $ 2,288,862 $ 9,389,725 $ - Intergovernmental - 44,966 - 256,211 Charges for services - - - - Use of money and property 55,707 267,847 432,615 722,934 Contributions - - - - Developer participation 88,079 2,809 - 1,569,074 Miscellaneous - - 19,461 - Total Revenues 143,786 2,604,484 9,841,801 2,548,219 Expenditures: Current: General government - 2,325,749 - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 10,267,492 - Community services - - - - Engineering and public works 49,152 - - 3,353,065 Capital outlay 342,523 - 781,914 3,369,365 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 391,675 2,325,749 11,049,406 6,722,430 Excess(Deficiency)of Revenues Over(Under) Expenditures (247,889) 278,735 (1,207,605) (4,174,211) Other Financing Sources(Uses): Transfers in - - 19,276 3,979,248 Transfers out - (7,974) - - Total Other Financing Sources (Uses) - (7,974) 19,276 3,979,248 Net Change in Fund Balances (247,889) 270,761 (1,188,329) (194,963) Fund Balances Beginning of year, as originally reported 1,764,313 6,217,211 12,032,568 19,424,826 Restatements - - - (3,561) Beginning of year, as restated 1,764,313 6,217,211 12,032,568 19,421,265 Net Change in Fund Balances (247,889) 270,761 (1,188,329) (194,963) End of Year $ 1,516,424 $ 6,487,972 $ 10,844,239 $ 19,226,302 101 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Transportation Community Pedestrian Enhancement Development Assessment Grant Act Block Grant Administration Revenues: Taxes $ - $ - $ - $ - Intergovernmental - 442,378 680,964 - Charges for services - - - - Use of money and property - - - 42,867 Contributions - - - - Developer participation - - - - Miscellaneous - - 30,000 895,153 Total Revenues - 442,378 710,964 938,020 Expenditures: Current: General government - - - 881,682 Public safety-police - - - - Public safety-fire protection - - - - Community development - - 882,267 - Community services - - - - Engineering and public works - - - - Capital outlay 98,787 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 98,787 - 882,267 881,682 Excess(Deficiency)of Revenues Over(Under) Expenditures (98,787) 442,378 (171,303) 56,338 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (98,787) 442,378 (171,303) 56,338 Fund Balances Beginning of year, as originally reported - (973,290) (26,942) 996,511 Restatements - - - - Beginning of year, as restated - (973,290) (26,942) 996,511 Net Change in Fund Balances (98,787) 442,378 (171,303) 56,338 End of Year $ (98,787) $ (530,912) $ (198,245) $ 1,052,849 102 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds San Sevaine/ South Etiwanda Air Quality Etiwanda Drainage SB 140 Improvement Drainage Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - 328,854 - Charges for services - - - - Use of money and property 46,618 313 17,122 767 Contributions - - - - Developer participation 8,188 - - - Miscellaneous - - - - Total Revenues 54,806 313 345,976 767 Expenditures: Current: General government - - 94,665 - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 11,250 - - - Capital outlay - - 322,110 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 11,250 - 416,775 - Excess(Deficiency)of Revenues Over(Under) Expenditures 43,556 313 (70,799) 767 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 43,556 313 (70,799) 767 Fund Balances Beginning of year, as originally reported 1,075,228 36,691 494,963 17,611 Restatements - - - - Beginning of year, as restated 1,075,228 36,691 494,963 17,611 Net Change in Fund Balances 43,556 313 (70,799) 767 End of Year $ 1,118,784 $ 37,004 $ 424,164 $ 18,378 103 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Lower Masi Etiwanda Commerce Library Drainage Center Measure I Services Revenues: Taxes $ - $ - $ - $ 3,728,070 Intergovernmental - - 2,202,478 50,585 Charges for services - - - 331,570 Use of money and property 24,189 1,863 202,220 187,702 Contributions - - - 159,349 Developer participation - - - - Miscellaneous - - - 109,292 Total Revenues 24,189 1,863 2,404,698 4,566,568 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - 4,030,324 Engineering and public works - - 1,340,539 - Capital outlay - - 2,341,409 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - 3,681,948 4,030,324 Excess(Deficiency)of Revenues Over(Under) Expenditures 24,189 1,863 (1,277,250) 536,244 Other Financing Sources(Uses): Transfers in - - 14,414 - Transfers out - - (537) (45,420) Total Other Financing Sources (Uses) - - 13,877 (45,420) Net Change in Fund Balances 24,189 1,863 (1,263,373) 490,824 Fund Balances Beginning of year, as originally reported 556,150 296,797 5,635,831 5,509,777 Restatements - - - - Beginning of year, as restated 556,150 296,797 5,635,831 5,509,777 Net Change in Fund Balances 24,189 1,863 (1,263,373) 490,824 End of Year $ 580,339 $ 298,660 $ 4,372,458 $ 6,000,601 104 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds California Literacy Families for Asset Metrolink Program Literacy Grant Forfeiture Revenues: Taxes $ - $ - $ - $ - Intergovernmental - 29,065 - 772,962 Charges for services - - - - Use of money and property 28 - (17) 9,487 Contributions - 15,000 - - Developer participation - - - - Miscellaneous - - - - Total Revenues 28 44,065 (17) 782,449 Expenditures: Current: General government - - - - Public safety-police - - - 84,671 Public safety-fire protection - - - - Community development - - - - Community services - 97,212 - - Engineering and public works - - - - Capital outlay - - - 60,273 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 97,212 - 144,944 Excess(Deficiency)of Revenues Over(Under) Expenditures 28 (53,147) (17) 637,505 Other Financing Sources(Uses): Transfers in - 45,420 17 - Transfers out (22,240) - - - Total Other Financing Sources (Uses) (22,240) 45,420 17 - Net Change in Fund Balances (22,212) (7,727) - 637,505 Fund Balances Beginning of year, as originally reported 22,212 (35,518) - - Restatements - - - - Beginning of year, as restated 22,212 (35,518) - - Net Change in Fund Balances (22,212) (7,727) - 637,505 End of Year $ - $ (43,245) $ - $ 637,505 105 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Used Oil Local Law Teen Recycling Enforcement COPS Connection Grant Block Grant Program Grant Program Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental 13,627 - 111,763 - Charges for services - - - - Use of money and property 16 7 4,307 427 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 13,643 7 116,070 427 Expenditures: Current: General government - - - - Public safety-police - - 260,600 - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 13,596 - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 13,596 - 260,600 - Excess(Deficiency)of Revenues Over(Under) Expenditures 47 7 (144,530) 427 Other Financing Sources(Uses): Transfers in - - - - Transfers out - (3,735) - - Total Other Financing Sources (Uses) - (3,735) - - Net Change in Fund Balances 47 (3,728) (144,530) 427 Fund Balances Beginning of year, as originally reported - 3,728 261,375 - Restatements - - - - Beginning of year, as restated - 3,728 261,375 - Net Change in Fund Balances 47 (3,728) (144,530) 427 End of Year $ 47 $ - $ 116,845 $ 427 106 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds Library AB 2928 Services& Traffic COPS in Drainage Technologies Congestion School Grant Facilities Act Relief Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - 57,381 - Charges for services - - - - Use of money and property - 290,316 257 (5) Contributions - - 40,000 - Developer participation - 1,208,004 - - Miscellaneous - - - - Total Revenues - 1,498,320 97,638 (5) Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - 90,000 - Engineering and public works - 368,303 - - Capital outlay - 2,963,709 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 3,332,012 90,000 - Excess(Deficiency)of Revenues Over(Under) Expenditures - (1,833,692) 7,638 (5) Other Financing Sources(Uses): Transfers in - - - 537 Transfers out - - - - Total Other Financing Sources (Uses) - - - 537 Net Change in Fund Balances - (1,833,692) 7,638 532 Fund Balances Beginning of year, as originally reported (45,837) 7,990,679 7,038 (532) Restatements - - - - Beginning of year, as restated (45,837) 7,990,679 7,038 (532) Net Change in Fund Balances - (1,833,692) 7,638 532 End of Year $ (45,837) $ 6,156,987 $ 14,676 $ - 107 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Litter Signal Reduction Coordination Congestion Foothill Blvd. Grant Grant Mitigation Maintenance Revenues: Taxes $ - $ - $ - $ - Intergovernmental 49,054 4,104 - - Charges for services - - - - Use of money and property 91 (14) - 1,444 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 49,145 4,090 - 1,444 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 48,998 - - 64,372 Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 48,998 - - 64,372 Excess(Deficiency)of Revenues Over(Under) Expenditures 147 4,090 - (62,928) Other Financing Sources(Uses): Transfers in - - - - Transfers out - (4,090) (32) - Total Other Financing Sources (Uses) - (4,090) (32) - Net Change in Fund Balances 147 - (32) (62,928) Fund Balances Beginning of year, as originally reported - - 32 284,703 Restatements - - - - Beginning of year, as restated - - 32 284,703 Net Change in Fund Balances 147 - (32) (62,928) End of Year $ 147 $ - $ - $ 221,775 108 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds Code Youth Enforcement Enrichment The Big Read Drink, Drive, Grant Program Grant Program Library Grant Lose Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental 3,873 23,147 18,355 50 Charges for services - - - - Use of money and property (8) (45) 92 50 Contributions - - 5,000 - Developer participation - - - - Miscellaneous - 286 - - Total Revenues 3,865 23,388 23,447 100 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - 23,376 17,819 - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 23,376 17,819 - Excess(Deficiency)of Revenues Over(Under) Expenditures 3,865 12 5,628 100 Other Financing Sources(Uses): Transfers in - - - - Transfers out (3,865) (12) - - Total Other Financing Sources (Uses) (3,865) (12) - - Net Change in Fund Balances - - 5,628 100 Fund Balances Beginning of year, as originally reported - - 4,472 - Restatements - - - - Beginning of year, as restated - - 4,472 - Net Change in Fund Balances - - 5,628 100 End of Year $ - $ - $ 10,100 $ 100 109 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Department of Public Henderson/ Homeland Resource Proposition Wardman Security Grant Grants 1 B Drainage Revenues: Taxes $ - $ - $ - $ - Intergovernmental - 33,000 2,513,086 - Charges for services - - -Use of money and property - 42 177,165 5,341 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues - 33,042 2,690,251 5,341 Expenditures: Current: General government - 33,000 - - Public safety-police - - - - Public safety-fire protection 45,783 - - - Community development - - - - Community services - - - - Engineering and public works - - 1,808,086 - Capital outlay 18,419 - 705,000 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 64,202 33,000 2,513,086 - Excess(Deficiency)of Revenues Over(Under) Expenditures (64,202) 42 177,165 5,341 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (64,202) 42 177,165 5,341 Fund Balances Beginning of year, as originally reported (6,658) 65 54,790 809,644 Restatements - - - - Beginning of year, as restated (6,658) 65 54,790 809,644 Net Change in Fund Balances (64,202) - 177,165 5,341 End of Year $ (70,860) $ 107 $ 231,955 $ 814,985 110 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds Proposition 42 OTS Integrated -Traffic Countdown Waste Federal Grant Congestion Pedestrian Management Fund -Dreier Relief Signals Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - 1,481,766 21 Charges for services 1,328,692 - - - Use of money and property 135,237 90 33,598 - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 1,463,929 90 1,515,364 21 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 892,115 - 1,480,644 - Capital outlay - - 295,000 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 892,115 - 1,775,644 - Excess(Deficiency)of Revenues Over(Under) Expenditures 571,814 90 (260,280) 21 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - (21) Total Other Financing Sources (Uses) - - - (21) Net Change in Fund Balances 571,814 90 (260,280) - Fund Balances Beginning of year, as originally reported 3,075,209 26 1,497,328 - Restatements - - - - Beginning of year, as restated 3,075,209 26 1,497,328 - Net Change in Fund Balances 571,814 90 (260,280) - End of Year $ 3,647,023 $ 116 $ 1,237,048 $ - 111 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Special Revenue Funds Justice OTS 2005 Senior Assistance State Seatbelt Biane County Transportation Grant Grant Library Grant Service Revenues: Taxes $ - $ - $ - $ - Intergovernmental 14,503 4,684 8,095 157,828 Charges for services - - - - Use of money and property (46) (2) - 7,921 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 14,457 4,682 8,095 165,749 Expenditures: Current: General government - - - - Public safety-police 14,445 51,206 - - Public safety-fire protection - - - - Community development - - - - Community services - - - 164,585 Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 14,445 51,206 - 164,585 Excess(Deficiency)of Revenues Over(Under) Expenditures 12 (46,524) 8,095 1,164 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - (222) - Total Other Financing Sources (Uses) - - (222) - Net Change in Fund Balances 12 (46,524) 7,873 1,164 Fund Balances Beginning of year, as originally reported - (4,684) (7,873) - Restatements - - - - Beginning of year, as restated - (4,684) (7,873) - Net Change in Fund Balances 12 (46,524) 7,873 1,164 End of Year $ 12 $ (51,208) $ - $ 1,164 112 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Special Revenue Funds Capital Projects Funds Homeland Bicycle Security Grant Transportation Assessment Assessment 2005 Acct. Grant District 82-1 District 84-1 Revenues: Taxes $ - $ - $ - $ - Intergovernmental - 586,000 - - Charges for services - - - - Use of money and property - - 503 42,770 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues - 586,000 503 42,770 Expenditures: Current: General government - - - - Public safety-police 10,259 - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - 586,000 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 10,259 586,000 - - Excess(Deficiency)of Revenues Over(Under) Expenditures (10,259) - 503 42,770 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (10,259) - 503 42,770 Fund Balances Beginning of year, as originally reported (15,151) (25,324) 11,522 983,386 Restatements - - - - Beginning of year, as restated (15,151) (25,324) 11,522 983,386 Net Change in Fund Balances (10,259) - 503 42,770 End of Year $ (25,410) $ (25,324) $ 12,025 $ 1,026,156 113 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 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 3 - 759 4,801 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 3 - 759 4,801 Expenditures: Current: General government - - - 63 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 - - - 63 Excess(Deficiency)of Revenues Over(Under) Expenditures 3 - 759 4,738 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 3 - 759 4,738 Fund Balances Beginning of year, as originally reported (3,788) (41,128) 91,239 553,806 Restatements - - - - Beginning of year, as restated (3,788) (41,128) 91,239 553,806 Net Change in Fund Balances 3 - 759 4,738 End of Year $ (3,785) $ (41,128) $ 91,998 $ 558,544 114 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 (Continued) 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 15,803 18,958 917 - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 15,803 18,958 917 - Expenditures: Current: General government 2,315,120 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - 99,635 - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,315,120 - 99,635 - Excess(Deficiency)of Revenues Over(Under) Expenditures (2,299,317) 18,958 (98,718) - Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - (181,785) Total Other Financing Sources (Uses) - - - (181,785) Net Change in Fund Balances (2,299,317) 18,958 (98,718) (181,785) Fund Balances Beginning of year, as originally reported 4,549,759 (2,108,657) (1,145,684) (1,316,257) Restatements - - - - Beginning of year, as restated 4,549,759 (2,108,657) (1,145,684) (1,316,257) Net Change in Fund Balances (2,299,317) 18,958 (98,718) (181,785) End of Year $ 2,250,442 $ (2,089,699) $ (1,244,402) $ (1,498,042) 115 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Capital Projects Funds Proposition 12 CFD 2004-01 CFD 2006-01 -Park Bond Rancho CFD 2003-01 Vintner's Act Etiwanda Cultural Center Grove Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - -Use of money and property (27) 12,649 1,148 33,686 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues (27) 12,649 1,148 33,686 Expenditures: Current: General government - 464,290 8,109 568,785 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 - 464,290 8,109 568,785 Excess(Deficiency)of Revenues Over(Under) Expenditures (27) (451,641) (6,961) (535,099) Other Financing Sources(Uses): Transfers in - - - - Transfers out (13,736) - - - Total Other Financing Sources (Uses) (13,736) - - - Net Change in Fund Balances (13,763) (451,641) (6,961) (535,099) Fund Balances Beginning of year, as originally reported 13,763 1,580,493 210,474 3,513,716 Restatements - - - - Beginning of year, as restated 13,763 1,580,493 210,474 3,513,716 Net Change in Fund Balances (13,763) (451,641) (6,961) (535,099) End of Year $ - $ 1,128,852 $ 203,513 $ 2,978,617 116 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2009 Capital Projects Funds CFD 2006-02 Total Nonmajor Amador on Governmental Route 66 Funds Revenues: Taxes $ - $ 15,406,657 Intergovernmental - 12,659,430 Charges for services - 4,469,726 Use of money and property 7,239 4,188,926 Contributions - 649,984 Developer participation - 3,694,404 Miscellaneous - 1,211,116 Total Revenues 7,239 42,280,243 Expenditures: Current: General government 1,172,223 7,863,686 Public safety-police - 421,181 Public safety-fire protection - 45,783 Community development - 11,460,421 Community services - 9,194,920 Engineering and public works - 12,621,380 Capital outlay - 14,333,386 Debt service: Principal retirement - 17,536 Interest and fiscal charges - 2,941 Total Expenditures 1,172,223 55,961,234 Excess(Deficiency)of Revenues Over(Under) Expenditures (1,164,984) (13,680,991) Other Financing Sources(Uses): Transfers in - 4,059,146 Transfers out - (290,126) Total Other Financing Sources (Uses) - 3,769,020 Net Change in Fund Balances (1,164,984) (9,911,971) Fund Balances Beginning of year, as originally reported 1,181,620 92,125,598 Restatements - (3,561) Beginning of year, as restated 1,181,620 92,122,037 Net Change in Fund Balances (1,164,984) (9,911,971) End of Year $ 16,636 $ 82,210,066 117 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE GAS TAX YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,116,181 $ 2,116,181 $ 2,116,181 $ - Resources (Inflows): Intergovernmental 3,226,850 2,834,400 2,770,630 (63,770) Use of money and property 55,130 32,370 59,275 26,905 Amounts Available for Appropriation 5,398,161 4,982,951 4,946,086 (36,865) Charges to Appropriation (Outflow): Engineering and public works 4,363,649 3,224,010 3,095,898 128,112 Capital outlay 29,380 29,380 - 29,380 Debt service: Principal retirement - - 17,536 (17,536) Interest and fiscal charges - - 2,941 (2,941) Total Charges to Appropriations 4,393,029 3,253,390 3,116,375 137,015 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,005,132 $ 1,729,561 1,829,711 $ 100,150 Encumbrances 4,273 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,833,984 118 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE SB 325 YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,329 $ 6,329 $ 6,329 $ - Resources (Inflows): Use of money and property 190 220 220 - Amounts Available for Appropriation 6,519 6,549 6,549 - Charges to Appropriation (Outflow): Transfers out - 6,440 6,440 - Total Charges to Appropriations - 6,440 6,440 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,519 $ 109 109 $ - Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 109 119 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE RECREATION YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,467,365 $ 2,467,365 $ 2,467,365 $ - Resources (Inflows): Charges for services 3,428,960 2,894,490 2,809,464 (85,026) Use of money and property 931,410 883,710 814,559 (69,151) Contributions 409,830 469,400 430,635 (38,765) Miscellaneous 105,650 123,630 156,924 33,294 Transfers in - - 234 234 Amounts Available for Appropriation 7,343,215 6,838,595 6,679,181 (159,414) Charges to Appropriation (Outflow): Community services 5,594,140 5,176,030 4,771,604 404,426 Transfers out - - 17 (17) Total Charges to Appropriations 5,594,140 5,176,030 4,771,621 404,409 Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,749,075 $ 1,662,565 1,907,560 $ 244,995 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,907,560 120 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE PARK DEVELOPMENT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12,533,490 $ 12,533,490 $ 12,533,490 $ - Resources (Inflows): Use of money and property 359,130 440,900 507,120 66,220 Developer participation 500,000 671,000 818,250 147,250 Amounts Available for Appropriation 13,392,620 13,645,390 13,858,860 213,470 Charges to Appropriation (Outflow): Community development 371,450 287,710 310,934 (23,224) Capital outlay 7,386,875 6,302,770 4,327,926 1,974,844 Total Charges to Appropriations 7,758,325 6,590,480 4,638,860 1,951,620 Budgetary Fund Balance,June 30(Budgetary Basis) $ 5,634,295 $ 7,054,910 9,220,000 $ 2,165,090 Encumbrances 1,879,321 Budgetary Fund Balance,June 30(GAAP Basis) $ 11,099,321 121 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE BEAUTIFICATION YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,764,313 $ 1,764,313 $ 1,764,313 $ - Resources (Inflows): Use of money and property 86,530 64,110 55,707 (8,403) Developer participation 80,000 70,000 88,079 18,079 Amounts Available for Appropriation 1,930,843 1,898,423 1,908,099 9,676 Charges to Appropriation (Outflow): Engineering and public works 98,640 12,000 49,152 (37,152) Capital outlay 953,346 1,048,200 545,171 503,029 Total Charges to Appropriations 1,051,986 1,060,200 594,323 465,877 Budgetary Fund Balance,June 30(Budgetary Basis) $ 878,857 $ 838,223 1,313,776 $ 475,553 Encumbrances 202,648 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,516,424 122 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE LIGHTING DISTRICTS YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,217,211 $ 6,217,211 $ 6,217,211 $ - Resources (Inflows): Taxes 2,172,420 2,132,900 2,288,862 155,962 Intergovernmental - - 44,966 44,966 Use of money and property 171,420 215,670 267,847 52,177 Developer participation 4,850 1,400 2,809 1,409 Amounts Available for Appropriation 8,565,901 8,567,181 8,821,695 254,514 Charges to Appropriation (Outflow): General government 1,757,670 2,719,480 2,325,749 393,731 Transfers out - 7,980 7,974 6 Total Charges to Appropriations 1,757,670 2,727,460 2,333,723 393,737 Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,808,231 $ 5,839,721 6,487,972 $ 648,251 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 6,487,972 123 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12,032,568 $ 12,032,568 $ 12,032,568 $ - Resources (Inflows): Taxes 8,720,250 8,460,630 9,389,725 929,095 Use of money and property 355,660 328,630 432,615 103,985 Miscellaneous 21,360 15,000 19,461 4,461 Transfers in - 3,500 19,276 15,776 Amounts Available for Appropriation 21,129,838 20,840,328 21,893,645 1,053,317 Charges to Appropriation (Outflow): Community development 11,252,950 11,410,570 10,364,541 1,046,029 Capital outlay 750,024 806,950 804,970 1,980 Total Charges to Appropriations 12,002,974 12,217,520 11,169,511 1,048,009 Budgetary Fund Balance,June 30(Budgetary Basis) $ 9,126,864 $ 8,622,808 10,724,134 $ 2,101,326 Encumbrances 120,105 Budgetary Fund Balance,June 30(GAAP Basis) $ 10,844,239 124 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE TRANSPORTATION YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated $ 19,421,265 $ 19,421,265 $ 19,421,265 $ - Resources (Inflows): Intergovernmental - - 256,211 256,211 Use of money and property 488,920 608,120 722,934 114,814 Developer participation 2,500,000 1,900,000 1,569,074 (330,926) Transfers in - 3,979,240 3,979,248 8 Amounts Available for Appropriation 22,410,185 25,908,625 25,948,732 40,107 Charges to Appropriation (Outflow): Engineering and public works 1,703,164 1,716,940 3,367,271 (1,650,331) Capital outlay 12,213,099 9,139,703 5,405,657 3,734,046 Total Charges to Appropriations 13,916,263 10,856,643 8,772,928 2,083,715 Budgetary Fund Balance,June 30(Budgetary Basis) $ 8,493,922 $ 15,051,982 17,175,804 $ 2,123,822 Encumbrances 2,050,498 Budgetary Fund Balance,June 30(GAAP Basis) $ 19,226,302 125 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE PEDESTRIAN GRANT YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ $ $ Resources (Inflows): - - - - Amounts Available for Appropriation - - - - Charges to Appropriation (Outflow): Capital outlay 1,445,491 3,017,680 168,868 2,848,812 Total Charges to Appropriations 1,445,491 3,017,680 168,868 2,848,812 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (1,445,491) $ (3,017,680) (168,868) $ 2,848,812 Encumbrances 70,081 Budgetary Fund Balance,June 30 (GAAP Basis) $ (98,787) 126 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (26,942) $ (26,942) $ (26,942) $ - Resources (Inflows): Intergovernmental 1,286,070 1,286,070 680,964 (605,106) Miscellaneous 90,000 60,000 30,000 (30,000) Amounts Available for Appropriation 1,349,128 1,319,128 684,022 (635,106) Charges to Appropriation (Outflow): Community development 345,670 345,670 882,267 (536,597) Capital outlay 1,028,375 895,810 61,096 834,714 Total Charges to Appropriations 1,374,045 1,241,480 943,363 298,117 Budgetary Fund Balance,June 30(Budgetary Basis) $ (24,917) $ 77,648 (259,341) $ (336,989) Encumbrances 61,096 Budgetary Fund Balance,June 30(GAAP Basis) $ (198,245) 127 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 996,511 $ 996,511 $ 996,511 $ - Resources (Inflows): Use of money and property 20,300 31,890 42,867 10,977 Miscellaneous 834,620 834,620 895,153 60,533 Amounts Available for Appropriation 1,851,431 1,863,021 1,934,531 71,510 Charges to Appropriation (Outflow): General government 889,500 916,680 881,682 34,998 Total Charges to Appropriations 889,500 916,680 881,682 34,998 Budgetary Fund Balance,June 30(Budgetary Basis) $ 961,931 $ 946,341 1,052,849 $ 106,508 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,052,849 128 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE SAN SEVAINE/ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,075,228 $ 1,075,228 $ 1,075,228 $ - Resources (Inflows): Use of money and property 48,280 20,620 46,618 25,998 Developer participation 75,000 8,180 8,188 8 Amounts Available for Appropriation 1,198,508 1,104,028 1,130,034 26,006 Charges to Appropriation (Outflow): Engineering and public works 11,250 11,250 11,250 - Total Charges to Appropriations 11,250 11,250 11,250 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,187,258 $ 1,092,778 1,118,784 $ 26,006 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,118,784 129 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 494,963 $ 494,963 $ 494,963 $ - Resources (Inflows): Intergovernmental 203,320 203,320 328,854 125,534 Use of money and property 13,300 14,700 17,122 2,422 Amounts Available for Appropriation 711,583 712,983 840,939 127,956 Charges to Appropriation (Outflow): General government 109,010 127,980 96,165 31,815 Capital outlay 256,800 260,040 322,110 (62,070) Total Charges to Appropriations 365,810 388,020 418,275 (30,255) Budgetary Fund Balance,June 30(Budgetary Basis) $ 345,773 $ 324,963 422,664 $ 97,701 Encumbrances 1,500 Budgetary Fund Balance,June 30(GAAP Basis) $ 424,164 130 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE SOUTH ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 17,611 $ 17,611 $ 17,611 $ - Resources (Inflows): Use of money and property 540 610 767 157 Amounts Available for Appropriation 18,151 18,221 18,378 157 Charges to Appropriation (Outflow): - - - - Total Charges to Appropriations - - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ 18,151 $ 18,221 18,378 $ 157 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 18,378 131 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 556,150 $ 556,150 $ 556,150 $ - Resources (Inflows): Use of money and property 45,920 19,400 24,189 4,789 Amounts Available for Appropriation 602,070 575,550 580,339 4,789 Charges to Appropriation (Outflow): Capital outlay 92,562 92,570 85,250 7,320 Total Charges to Appropriations 92,562 92,570 85,250 7,320 Budgetary Fund Balance,June 30(Budgetary Basis) $ 509,508 $ 482,980 495,089 $ 12,109 Encumbrances 85,250 Budgetary Fund Balance,June 30(GAAP Basis) $ 580,339 132 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE MASI COMMERCE CENTER YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 296,797 $ 296,797 $ 296,797 $ - Resources (Inflows): Use of money and property - 2,900 1,863 (1,037) Amounts Available for Appropriation 296,797 299,697 298,660 (1,037) Charges to Appropriation (Outflow): - - - - Total Charges to Appropriations - - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ 296,797 $ 299,697 298,660 $ (1,037) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 298,660 133 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE MEASUREI YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 5,635,831 $ 5,635,831 $ 5,635,831 $ - Resources (Inflows): Intergovernmental 2,611,700 2,105,600 2,202,478 96,878 Use of money and property 189,970 191,910 202,220 10,310 Transfers in - 14,420 14,414 (6) Amounts Available for Appropriation 8,437,501 7,947,761 8,054,943 107,182 Charges to Appropriation (Outflow): Engineering and public works 1,104,330 801,420 1,340,539 (539,119) Capital outlay 4,851,509 4,242,492 2,601,392 1,641,100 Transfers out - 540 537 3 Total Charges to Appropriations 5,955,839 5,044,452 3,942,468 1,101,984 Budgetary Fund Balance,June 30(Budgetary Basis) $ 2,481,662 $ 2,903,309 4,112,475 $ 1,209,166 Encumbrances 259,983 Budgetary Fund Balance,June 30(GAAP Basis) $ 4,372,458 134 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE LIBRARY SERVICES YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 5,509,777 $ 5,509,777 $ 5,509,777 $ - Resources (Inflows): Taxes 3,591,610 3,637,800 3,728,070 90,270 Intergovernmental 42,000 39,000 50,585 11,585 Charges for services 350,300 278,500 331,570 53,070 Use of money and property 118,120 147,400 187,702 40,302 Contributions 265,000 224,350 159,349 (65,001) Miscellaneous 90,000 60,000 109,292 49,292 Amounts Available for Appropriation 9,966,807 9,896,827 10,076,345 179,518 Charges to Appropriation (Outflow): Community services 4,509,765 4,387,960 4,052,635 335,325 Transfers out 45,420 50,420 45,420 5,000 Total Charges to Appropriations 4,555,185 4,438,380 4,098,055 340,325 Budgetary Fund Balance,June 30(Budgetary Basis) $ 5,411,622 $ 5,458,447 5,978,290 $ 519,843 Encumbrances 22,311 Budgetary Fund Balance,June 30(GAAP Basis) $ 6,000,601 135 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE METROLINK YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 22,212 $ 22,212 $ 22,212 $ - Resources (Inflows): Use of money and property 230 100 28 (72) Amounts Available for Appropriation 22,442 22,312 22,240 (72) Charges to Appropriation (Outflow): Transfers out - 22,210 22,240 (30) Total Charges to Appropriations - 22,210 22,240 (30) Budgetary Fund Balance,June 30(Budgetary Basis) $ 22,442 $ 102 - $ (102) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 136 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CALIFORNIA LITERACY PROGRAM YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (35,518) $ (35,518) $ (35,518) $ - Resources (Inflows): Intergovernmental 36,400 36,400 29,065 (7,335) Contributions 15,000 15,000 15,000 - Transfers in 45,420 50,420 45,420 (5,000) Amounts Available for Appropriation 61,302 66,302 53,967 (12,335) Charges to Appropriation (Outflow): Community services 96,820 101,020 97,270 3,750 Total Charges to Appropriations 96,820 101,020 97,270 3,750 Budgetary Fund Balance,June 30(Budgetary Basis) $ (35,518) $ (34,718) (43,303) $ (8,585) Encumbrances 58 Budgetary Fund Balance,June 30(GAAP Basis) $ (43,245) 137 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ASSET FORFEITURE YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental - - 772,962 772,962 Use of money and property - - 9,487 9,487 Amounts Available for Appropriation - - 782,449 782,449 Charges to Appropriation (Outflow): Public safety - 84,680 84,671 9 Capital outlay - 60,280 60,273 7 Total Charges to Appropriations - 144,960 144,944 16 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ (144,960) 637,505 $ 782,465 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 637,505 138 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE USED OIL RECYCLING GRANT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 40,000 44,000 13,627 (30,373) Use of money and property - - 16 16 Amounts Available for Appropriation 40,000 44,000 13,643 (30,357) Charges to Appropriation (Outflow): Engineering and public works 40,000 43,800 13,596 30,204 Total Charges to Appropriations 40,000 43,800 13,596 30,204 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ 200 47 $ (153) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 47 139 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE DRAINAGE FACILITIES YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 7,990,679 $ 7,990,679 $ 7,990,679 $ - Resources (Inflows): Use of money and property 251,090 260,870 290,316 29,446 Developer participation 800,000 1,173,000 1,208,004 35,004 Amounts Available for Appropriation 9,041,769 9,424,549 9,488,999 64,450 Charges to Appropriation (Outflow): Engineering and public works 329,160 232,310 368,303 (135,993) Capital outlay 4,031,622 4,040,380 3,610,986 429,394 Total Charges to Appropriations 4,360,782 4,272,690 3,979,289 293,401 Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,680,987 $ 5,151,859 5,509,710 $ 357,851 Encumbrances 647,277 Budgetary Fund Balance,June 30(GAAP Basis) $ 6,156,987 140 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE COPS PROGRAM GRANT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 261,375 $ 261,375 $ 261,375 $ - Resources (Inflows): Intergovernmental - 182,000 111,763 (70,237) Use of money and property 1,650 - 4,307 4,307 Amounts Available for Appropriation 263,025 443,375 377,445 (65,930) Charges to Appropriation (Outflow): Public safety-police 205,340 320,600 260,600 60,000 Total Charges to Appropriations 205,340 320,600 260,600 60,000 Budgetary Fund Balance,June 30(Budgetary Basis) $ 57,685 $ 122,775 116,845 $ (5,930) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 116,845 141 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE LIBRARY SERVICES&TECHNOLOGIES ACT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 7,038 $ 7,038 $ 7,038 $ - Resources (Inflows): Intergovernmental 50,000 50,000 57,381 7,381 Use of money and property - - 257 257 Contributions - 40,000 40,000 - Amounts Available for Appropriation 57,038 97,038 104,676 7,638 Charges to Appropriation (Outflow): Community services 90,000 90,000 90,000 - Total Charges to Appropriations 90,000 90,000 90,000 - Budgetary Fund Balance,June 30(Budgetary Basis) $ (32,962) $ 7,038 14,676 $ 7,638 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 14,676 142 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE AB 2928 TRAFFIC CONGESTION RELIEF YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (532) $ (532) $ (532) $ - Resources (Inflows): Use of money and property 130 - (5) (5) Transfers in - 540 537 (3) Amounts Available for Appropriation (402) 8 - (8) Charges to Appropriation (Outflow): - - - - Total Charges to Appropriations - - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ (402) $ 8 - $ (8) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ - 143 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE LITTER REDUCTION GRANT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Intergovernmental 44,000 45,000 49,054 4,054 Use of money and property - - 91 91 Amounts Available for Appropriation 44,000 45,000 49,145 4,145 Charges to Appropriation (Outflow): Engineering and public works 56,141 51,950 48,998 2,952 Total Charges to Appropriations 56,141 51,950 48,998 2,952 Budgetary Fund Balance,June 30(Budgetary Basis) $ (12,141) $ (6,950) 147 $ 7,097 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 147 144 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CONGESTION MITIGATION YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 32 $ 32 $ 32 $ - Resources(Inflows): - - - - Amounts Available for Appropriation 32 32 32 - Charges to Appropriation (Outflow): Transfers out - 40 32 8 Total Charges to Appropriations - 40 32 8 Budgetary Fund Balance,June 30(Budgetary Basis) $ 32 $ (8) - $ 8 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 145 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE FOOTHILL BLVD. MAINTENANCE YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 284,703 $ 284,703 $ 284,703 $ - Resources(Inflows): Use of money and property - - 1,444 1,444 Amounts Available for Appropriation 284,703 284,703 286,147 1,444 Charges to Appropriation (Outflow): Engineering and public works 60,850 71,140 65,697 5,443 Total Charges to Appropriations 60,850 71,140 65,697 5,443 Budgetary Fund Balance, June 30(Budgetary Basis) $ 223,853 $ 213,563 220,450 $ 6,887 Encumbrances 1,325 Budgetary Fund Balance,June 30(GAAP Basis) $ 221,775 146 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE THE BIG READ LIBRARY GRANT YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 4,472 $ 4,472 $ 4,472 $ - Resources(Inflows): Intergovernmental 20,000 20,000 18,355 (1,645) Use of money and property - - 92 92 Contributions 5,000 5,000 5,000 - Amounts Available for Appropriation 29,472 29,472 27,919 (1,553) Charges to Appropriation (Outflow): Community services 25,000 17,830 17,819 11 Total Charges to Appropriations 25,000 17,830 17,819 11 Budgetary Fund Balance, June 30(Budgetary Basis) $ 4,472 $ 11,642 10,100 $ (1,542) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 10,100 147 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE DEPARTMENT OF HOMELAND SECURITY GRANT YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (6,658) $ (6,658) $ (6,658) $ - Resources(Inflows): Intergovernmental 57,900 57,900 - (57,900) Amounts Available for Appropriation 51,242 51,242 (6,658) (57,900) Charges to Appropriation(Outflow): Public safety-fire protection 47,900 43,500 45,783 (2,283) Capital outlay 10,000 14,400 18,419 (4,019) Total Charges to Appropriations 57,900 57,900 64,202 (6,302) Budgetary Fund Balance, June 30(Budgetary Basis) $ (6,658) $ (6,658) (70,860) $ (64,202) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (70,860) 148 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 65 $ 65 $ 65 $ - Resources(Inflows): Intergovernmental - - 33,000 33,000 Use of money and property - - 42 42 Amounts Available for Appropriation 65 65 33,107 33,042 Charges to Appropriation (Outflow): General government - 33,000 33,000 - Total Charges to Appropriations - 33,000 33,000 - Budgetary Fund Balance,June 30(Budgetary Basis) $ 65 $ (32,935) 107 $ 33,042 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 107 149 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE PROPOSITION 1 B YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 54,790 $ 54,790 $ 54,790 $ - Resources(Inflows): Intergovernmental - 5,333,940 2,513,086 (2,820,854) Use of money and property 45,000 116,360 177,165 60,805 Amounts Available for Appropriation 99,790 5,505,090 2,745,041 (2,760,049) Charges to Appropriation (Outflow): Engineering and public works - - 1,808,086 (1,808,086) Capital outlay 4,182,000 5,743,750 2,716,594 3,027,156 Total Charges to Appropriations 4,182,000 5,743,750 4,524,680 1,219,070 Budgetary Fund Balance,June 30(Budgetary Basis) $ (4,082,210) $ (238,660) (1,779,639) $ (1,540,979) Encumbrances 2,011,594 Budgetary Fund Balance,June 30(GAAP Basis) $ 231,955 150 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 3,075,209 $ 3,075,209 $ 3,075,209 $ - Resources(Inflows): Charges for services 1,107,690 1,065,000 1,328,692 263,692 Use of money and property 78,590 103,250 135,237 31,987 Amounts Available for Appropriation 4,261,489 4,243,459 4,539,138 295,679 Charges to Appropriation(Outflow): Engineering and public works 977,160 978,320 892,115 86,205 Capital outlay 215,527 136,940 - 136,940 Total Charges to Appropriations 1,192,687 1,115,260 892,115 223,145 Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,068,802 $ 3,128,199 3,647,023 $ 518,824 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 3,647,023 151 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE PROPOSITION 42-TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,497,328 $ 1,497,328 $ 1,497,328 $ - Resources(Inflows): Intergovernmental 1,658,960 1,123,590 1,481,766 358,176 Use of money and property 68,520 31,850 33,598 1,748 Amounts Available for Appropriation 3,224,808 2,652,768 3,012,692 359,924 Charges to Appropriation(Outflow): Engineering and public works - - 1,480,644 (1,480,644) Capital outlay 2,424,959 1,779,960 295,000 1,484,960 Total Charges to Appropriations 2,424,959 1,779,960 1,775,644 4,316 Budgetary Fund Balance, June 30(Budgetary Basis) $ 799,849 $ 872,808 1,237,048 $ 364,240 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 1,237,048 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE JUSTICE ASSISTANCE PROGRAM YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 11,720 14,503 2,783 Use of money and property 410 - (46) (46) Amounts Available for Appropriation 410 11,720 14,457 2,737 Charges to Appropriation (Outflow): Public safety-police - 26,170 14,445 11,725 Total Charges to Appropriations - 26,170 14,445 11,725 Budgetary Fund Balance,June 30(Budgetary Basis) $ 410 $ (14,450) 12 $ 14,462 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 12 153 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE OTS 2005 STATE SEATBELT GRANT YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (4,684) $ (4,684) $ (4,684) $ - Resources(Inflows): Intergovernmental - 60,530 4,684 (55,846) Use of money and property - - (2) (2) Amounts Available for Appropriation (4,684) 55,846 (2) (55,848) Charges to Appropriation (Outflow): Public safety - 60,530 51,206 9,324 Total Charges to Appropriations - 60,530 51,206 9,324 Budgetary Fund Balance, June 30(Budgetary Basis) $ (4,684) $ (4,684) (51,208) $ (46,524) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (51,208) 154 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE SENIOR TRANSPORTATION SERVICE YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental 100,000 100,000 157,828 57,828 Use of money and property 7,180 6,710 7,921 1,211 Amounts Available for Appropriation 107,180 106,710 165,749 59,039 Charges to Appropriation(Outflow): Community services 100,000 175,000 164,585 10,415 Total Charges to Appropriations 100,000 175,000 164,585 10,415 Budgetary Fund Balance, June 30(Budgetary Basis) $ 7,180 $ (68,290) 1,164 $ 69,454 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,164 155 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE HOMELAND SECURITY GRANT 2005 YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (15,151) $ (15,151) $ (15,151) $ - Resources(Inflows): - - - - Amounts Available for Appropriation (15,151) (15,151) (15,151) - Charges to Appropriation (Outflow): Public safety-police 2,000 12,260 10,259 2,001 Total Charges to Appropriations 2,000 12,260 10,259 2,001 Budgetary Fund Balance,June 30(Budgetary Basis) $ (17,151) $ (27,411) (25,410) $ 2,001 Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ (25,410) 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE BICYCLE TRANSPORTATION ACCT. GRANT YEAR ENDED JUNE 30, 2009 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 586,000 611,330 586,000 (25,330) Amounts Available for Appropriation 560,676 586,006 560,676 (25,330) Charges to Appropriation (Outflow): Capital outlay 2,835,000 586,000 586,000 - Total Charges to Appropriations 2,835,000 586,000 586,000 - Budgetary Fund Balance,June 30(Budgetary Basis) $ (2,274,324) $ 6 (25,324) $ (25,330) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (25,324) 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE ASSESSMENT DISTRICT 84-1 YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 983,386 $ 983,386 $ 983,386 $ - Resources (Inflows): Use of money and property 30,410 34,300 42,770 8,470 Amounts Available for Appropriation 1,013,796 1,017,686 1,026,156 8,470 Charges to Appropriation (Outflow): - - - - Total Charges to Appropriations - - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,013,796 $ 1,017,686 1,026,156 $ 8,470 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,026,156 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2000-01 SOUTH ETIWANDA YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 91,239 $ 91,239 $ 91,239 $ - Resources (Inflows): Use of money and property - 1,400 759 (641) Amounts Available for Appropriation 91,239 92,639 91,998 (641) Charges to Appropriation (Outflow): - - - - Total Charges to Appropriations - - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ 91,239 $ 92,639 $ 91,998 $ (641) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 91,998 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2000-02 RANCHO CUCAMONGA CORPORATE PARK YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 553,806 $ 553,806 $ 553,806 $ - Resources (Inflows): Use of money and property - 9,000 4,801 (4,199) Amounts Available for Appropriation 553,806 562,806 558,607 (4,199) Charges to Appropriation (Outflow): General government - - 63 (63) Total Charges to Appropriations - - 63 (63) Budgetary Fund Balance,June 30(Budgetary Basis) $ 553,806 $ 562,806 558,544 $ (4,262) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 558,544 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2000-03 RANCHO SUMMIT YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 4,549,759 $ 4,549,759 $ 4,549,759 $ - Resources (Inflows): Use of money and property - 30,000 15,803 (14,197) Amounts Available for Appropriation 4,549,759 4,579,759 4,565,562 (14,197) Charges to Appropriation (Outflow): General government - - 2,315,120 (2,315,120) Capital outlay - 2,202,250 - 2,202,250 Total Charges to Appropriations - 2,202,250 2,315,120 (112,870) Budgetary Fund Balance,June 30(Budgetary Basis) $ 4,549,759 $ 2,377,509 2,250,442 $ (127,067) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 2,250,442 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2001-01 YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (2,108,657) $ (2,108,657) $ (2,108,657) $ - Resources (Inflows): Use of money and property 10,000 15,130 18,958 3,828 Amounts Available for Appropriation (2,098,657) (2,093,527) (2,089,699) 3,828 Charges to Appropriation (Outflow): - - - - Total Charges to Appropriations - - - - Budgetary Fund Balance,June 30(Budgetary Basis) $ (2,098,657) $ (2,093,527) (2,089,699) $ 3,828 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (2,089,699) 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2003-01 PROJECT FUND YEAR ENDED JUNE 30, 2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,145,684) $ (1,145,684) $ (1,145,684) $ - Resources (Inflows): Use of money and property - 1,700 917 (783) Amounts Available for Appropriation (1,145,684) (1,143,984) (1,144,767) (783) Charges to Appropriation (Outflow): Public works - 99,635 (99,635) Total Charges to Appropriations - - 99,635 (99,635) Budgetary Fund Balance,June 30 (Budgetary Basis) $ (1,145,684) $ (1,143,984) (1,244,402) $ (100,418) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (1,244,402) 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE PUBLIC LIBRARY BOND ACT-2000 YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,316,257) $ (1,316,257) $ (1,316,257) $ - Resources (Inflows): Amounts Available for Appropriation (1,316,257) (1,316,257) (1,316,257) - Charges to Appropriation (Outflow): Transfers out - 181,790 181,785 5 Total Charges to Appropriations - 181,790 181,785 5 Budgetary Fund Balance,June 30(Budgetary Basis) $ (1,316,257) $ (1,498,047) (1,498,042) $ 5 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (1,498,042) 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2004-01 RANCHO ETIWANDA YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,580,493 $ 1,580,493 $ 1,580,493 $ - Resources (Inflows): Use of money and property - 21,000 12,649 (8,351) Amounts Available for Appropriation 1,580,493 1,601,493 1,593,142 (8,351) Charges to Appropriation (Outflow): General government - 364,040 464,290 (100,250) Total Charges to Appropriations - 364,040 464,290 (100,250) Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,580,493 $ 1,237,453 1,128,852 $ (108,601) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,128,852 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2003-01 CULTURAL CENTER YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 210,474 $ 210,474 $ 210,474 $ - Resources (Inflows): Use of money and property - 2,200 1,148 (1,052) Amounts Available for Appropriation 210,474 212,674 211,622 (1,052) Charges to Appropriation (Outflow): General government - - 8,109 (8,109) Capital outlay 294,120 210,470 - 210,470 Total Charges to Appropriations 294,120 210,470 8,109 202,361 Budgetary Fund Balance,June 30(Budgetary Basis) $ (83,646) $ 2,204 203,513 $ 201,309 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 203,513 166 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2006-01 VINTNER'S GROVE YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 3,513,716 $ 3,513,716 $ 3,513,716 $ - Resources (Inflows): Use of money and property - 59,000 33,686 (25,314) Amounts Available for Appropriation 3,513,716 3,572,716 3,547,402 (25,314) Charges to Appropriation (Outflow): General government - - 568,785 (568,785) Total Charges to Appropriations - - 568,785 (568,785) Budgetary Fund Balance,June 30(Budgetary Basis) $ 3,513,716 $ 3,572,716 2,978,617 $ (594,099) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 2,978,617 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE CFD 2006-02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,181,620 $ 1,181,620 $ 1,181,620 $ - Resources (Inflows): Use of money and property - 14,000 7,239 (6,761) Amounts Available for Appropriation 1,181,620 1,195,620 1,188,859 (6,761) Charges to Appropriation (Outflow): General government - - 1,172,223 (1,172,223) Capital outlay - 1,097,230 - 1,097,230 Total Charges to Appropriations - 1,097,230 1,172,223 (74,993) Budgetary Fund Balance,June 30(Budgetary Basis) $ 1,181,620 $ 98,390 16,636 $ (81,754) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 16,636 168 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY-CAPITAL PROJECT FUND YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 as restated $ 304,890,052 $ 304,890,052 $ 304,890,052 $ - Resources(Inflows): Taxes 19,834,227 20,000,000 19,576,638 (423,362) Use of money and property 9,257,200 5,444,390 10,595,920 5,151,530 Contributions 500,000 - - - Miscellaneous 58,000 58,000 296,891 238,891 Transfers in 85,810 268,510 7,717,594 7,449,084 Amounts Available for Appropriation 334,625,289 330,660,952 343,077,095 12,416,143 Charges to Appropriation (Outflow): General government 4,907,544 4,735,826 4,800,045 (64,219) Community development 73,933 83,940 2,795,227 (2,711,287) Capital outlay 128,473,994 71,232,678 37,138,530 34,094,148 Debt service: Principal retirement 4,819,590 4,844,680 4,844,676 4 Interest and fiscal charges 9,574,820 9,549,730 10,977,640 (1,427,910) Transfers out 50,000 4,619,100 4,568,190 50,910 Total Charges to Appropriations 147,899,881 95,065,954 65,124,308 29,941,646 Budgetary Fund Balance,June 30(Budgetary Basis) $ 186,725,408 $235,594,998 277,952,787 $ 42,357,789 Encumbrances 16,479,312 Budgetary Fund Balance,June 30(GAAP Basis) $ 294,432,099 169 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY-DEBT SERVICE FUND YEAR ENDED JUNE 30,2009 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1, as restated $ 124,375,991 $ 124,375,991 $124,375,991 $ - Resources (Inflows): Taxes 79,336,905 73,395,490 78,306,551 4,911,061 Use of money and property 1,591,810 2,614,200 3,477,112 862,912 Transfers in 18,404,790 70,385,210 - (70,385,210) Other debts issued - - 618,392 618,392 Amounts Available for Appropriation 223,709,496 270,770,891 206,778,046 (63,992,845) Charges to Appropriation (Outflow): General government 25,930,953 24,752,750 25,627,034 (874,284) Community development 100,500 100,500 100,983 (483) Capital outlay 87,899,284 8,751,710 5,919,388 2,832,322 Debt service: Principal retirement 7,356,320 6,546,320 6,987,711 (441,391) Interest and fiscal charges 12,539,790 13,139,800 13,158,173 (18,373) Transfers out 60,130,620 59,530,630 9,411,660 50,118,970 Total Charges to Appropriations 193,957,467 112,821,710 61,204,949 51,616,761 Budgetary Fund Balance,June 30(Budgetary Basis) $ 29,752,029 $ 157,949,181 145,573,097 $ (12,376,084) Encumbrances 3,510,045 Budgetary Fund Balance,June 30(GAAP Basis) $149,083,142 170 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, 2009 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 10,687,709 $ 3,768,005 $ 14,455,714 Receivables: Accrued interest 11,445 4,050 15,495 Total Current Assets 10,699,154 3,772,055 14,471,209 Noncurrent: Capital assets-net of accumulated depreciation 3,862,478 556,310 4,418,788 Total Noncurrent Assets 3,862,478 556,310 4,418,788 Total Assets $ 14,561,632 $ 4,328,365 $ 18,889,997 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 140,423 $ 153,448 $ 293,871 Total Current Liabilities 140,423 153,448 293,871 Total Liabilities 140,423 153,448 293,871 Net Assets: Invested in capital assets 3,862,478 556,310 4,418,788 Unrestricted 10,558,731 3,618,607 14,177,338 Total Net Assets 14,421,209 4,174,917 18,596,126 Total Liabilities and Net Assets $ 14,561,632 $ 4,328,365 $ 18,889,997 172 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2009 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 13,590 $ 13,590 Miscellaneous 6,669 - 6,669 Total Operating Revenues 6,669 13,590 20,259 Operating Expenses: Maintenance and operations 506,733 501,713 1,008,446 Depreciation expense 1,000,723 377,962 1,378,685 Total Operating Expenses 1,507,456 879,675 2,387,131 Operating Income(Loss) (1,500,787) (866,085) (2,366,872) Nonoperating Revenues(Expenses): Interest revenue 477,784 163,449 641,233 Total Nonoperating Revenues(Expenses) 477,784 163,449 641,233 Changes in Net Assets (1,023,003) (702,636) (1,725,639) Net Assets: Beginning of Year 15,444,212 4,877,553 20,321,765 End of Fiscal Year $ 14,421,209 $ 4,174,917 $ 18,596,126 173 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2009 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from customers and users $ 6,669 $ 13,590 $ 20,259 Cash paid to supplies for goods and services (752,887) (917,251) (1,670,138) Net Cash Provided(Used) by Operating Activities (746,218) (903,661) (1,649,879) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (1,914,473) (133,177) (2,047,650) Net Cash Provided(Used) by Capital and Related Financing Activities (1,914,473) (133,177) (2,047,650) Cash Flows from Investing Activities: Interest received 483,391 165,680 649,071 Net Cash Provided(Used) by Investing Activities 483,391 165,680 649,071 Net Increase(Decrease) in Cash and Cash Equivalents (2,177,300) (871,158) (3,048,458) Cash and Cash Equivalents at Beginning of Year 12,865,009 4,639,163 17,504,172 Cash and Cash Equivalents at End of Year $ 10,687,709 $ 3,768,005 $ 14,455,714 Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Activities: Operating income(loss) $ (1,500,787) $ (866,085) $ (2,366,872) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 1,000,723 377,962 1,378,685 (Increase)decrease in prepaid costs - 2,734 2,734 Increase(decrease)in accounts payable (246,154) (418,272) (664,426) Total Adjustments 754,569 (37,576) 716,993 Net Cash Provided(Used) by Operating Activities $ (746,218) $ (903,661) $ (1,649,879) Non-Cash Investing, Capital, and Financing Activities: None. 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 86-2 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, 2009 Special Assessment Assessment Deposits District 82-1 CFD 84-1 District 84-2 Assets: Cash and investments $ 18,435,603 $ 43 $ - $ 46 Receivables: Accounts - - - - Taxes - - - - Interest - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 18,435,603 $ 43 $ - $ 46 Liabilities: Accounts payable $ 20,326 $ - $ - $ - Accrued liabilities - - - - Deposits payable 18,415,277 - - - Due to external parties/outside agencies - - - - Payable to trustee - 43 - 46 Total Liabilities $ 18,435,603 $ 43 $ - $ 46 178 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2009 (Continued) Assessment Assessment Assessment District 86-2 District 85-PD CFD 88-2 District 91-2 Assets: Cash and investments $ - $ 2,513,673 $ 4,630,629 $ 216,172 Receivables: Accounts - 1,298 - - Taxes - 21,020 4,717 521 Interest - 2,715 3,253 232 Restricted assets: Cash and investments with fiscal agents - - 16 - Total Assets $ - $ 2,538,706 $ 4,638,615 $ 216,925 Liabilities: Accounts payable $ - $ 52,206 $ - $ - Accrued liabilities - 22,203 - 1,556 Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee - 2,464,297 4,638,615 215,369 Total Liabilities $ - $ 2,538,706 $ 4,638,615 $ 216,925 179 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2009 CFD 2000-02 CFD 2000-01 Rancho Assessment South Cucamonga CFD 93-3 District 99-1 Etiwanda Corporate Park Assets: Cash and investments $ 375,601 $ 673,247 $ 303,808 $ 514,696 Receivables: Accounts - - - - Taxes - - 2,114 - Interest 403 688 326 552 Restricted assets: Cash and investments with fiscal agents 26 2,319,052 111,430 680,370 Total Assets $ 376,030 $ 2,992,987 $ 417,678 $ 1,195,618 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - 32,301 - - Payable to trustee 376,030 2,960,686 417,678 1,195,618 Total Liabilities $ 376,030 $ 2,992,987 $ 417,678 $ 1,195,618 180 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2009 (Continued) AD 93-1 Masi Commerce CFD 2001-01 CFD 2001-01 CFD 2003-01 Center Series A Series B Series A Assets: Cash and investments $ 445,629 $ 1,413,507 $ 27,468 $ 1,007,214 Receivables: Accounts - - - - Taxes 184 92,498 - 390 Interest 478 3 30 1,081 Restricted assets: Cash and investments with fiscal agents 242,510 3,198,083 90,879 1,464,566 Total Assets $ 688,801 $ 4,704,091 $ 118,377 $ 2,473,251 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 688,801 4,704,091 118,377 2,473,251 Total Liabilities $ 688,801 $ 4,704,091 $ 118,377 $ 2,473,251 181 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2009 CFD 2000-03 CFD 2000-03 Rancho Rancho CFD 2003-01 Summit Summit Series B Redemption Reserve CFD 2004-01 Assets: Cash and investments $ 153,871 $ 761,581 $ - $ 1,656,051 Receivables: Accounts - - - - Taxes - 24,453 - 51,157 Interest 165 817 - 1,779 Restricted assets: Cash and investments with fiscal agents 292,806 15 717,653 2,985,078 Total Assets $ 446,842 $ 786,866 $ 717,653 $ 4,694,065 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 446,842 786,866 717,653 4,694,065 Total Liabilities $ 446,842 $ 786,866 $ 717,653 $ 4,694,065 182 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2009 (Continued) CFD 2000-03 Employee Park CFD 2006-01 CFD 2006-02 Deduction Maintenance Redemption Redemption Account Assets: Cash and investments $ 634,379 $ 331,324 $ 173,764 $ - Receivables: Accounts - - - 673 Taxes 11,491 4,416 1,349 - Interest 1,143 356 187 - Restricted assets: Cash and investments with fiscal agents - 381,488 197,927 - Total Assets $ 647,013 $ 717,584 $ 373,227 $ 673 Liabilities: Accounts payable $ 7,589 $ - $ - $ 370 Accrued liabilities - - - - Deposits payable - - - - Due to external parties/outside agencies - - - - Payable to trustee 639,424 717,584 373,227 303 Total Liabilities $ 647,013 $ 717,584 $ 373,227 $ 673 183 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2009 Assessment District 82-2 Total Assets: Cash and investments $ 5 $ 34,268,311 Receivables: Accounts - 1,971 Taxes - 214,310 Interest - 14,208 Restricted assets: Cash and investments with fiscal agents - 12,681,899 Total Assets $ 5 $ 47,180,699 Liabilities: Accounts payable $ - $ 80,491 Accrued liabilities - 23,759 Deposits payable - 18,415,277 Due to external parties/outside agencies - 32,301 Payable to trustee 5 28,628,871 Total Liabilities $ 5 $ 47,180,699 184 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Balance Balance July 1, 2008 Additions Deductions June 30, 2009 Special Deposits Assets: Cash and investments $ 18,901,762 $ 3,120,849 $ 3,587,008 $ 18,435,603 Receivables: Accounts 370,298 - 370,298 - Taxes 3,597 - 3,597 - Total Assets $ 19,275,657 $ 3,120,849 $ 3,960,903 $ 18,435,603 Liabilities: Accounts payable $ 94,238 $ 2,054,958 $ 2,128,870 $ 20,326 Deposits payable 19,181,419 3,397,467 4,163,609 18,415,277 Total Liabilities $ 19,275,657 $ 5,452,425 $ 6,292,479 $ 18,435,603 Assessment District 82-1 Assets: Cash and investments $ 42 $ 1 $ - $ 43 Total Assets $ 42 $ 1 $ - $ 43 Liabilities: Payable to trustee $ 42 $ 1 $ - $ 43 Total Liabilities $ 42 $ 1 $ - $ 43 CFD 84-1 Assets: Cash and investments $ 121 $ 40,592 $ 40,713 $ - Receivables: Taxes 20 - 20 - Total Assets $ 141 $ 40,592 $ 40,733 $ - Liabilities: Due to other funds $ 40,713 $ - $ 40,713 $ - Due to external parties/other agencies 40,572 - 40,572 - Total Liabilities $ 81,285 $ - $ 81,285 $ - Assessment District 84-2 Assets: Cash and investments $ 46 $ - $ - $ 46 Total Assets $ 46 $ - $ - $ 46 Liabilities: Payable to trustee $ 46 $ - $ - $ 46 Total Liabilities $ 46 $ - $ - $ 46 185 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 Balance Balance July 1, 2008 Additions Deductions June 30, 2009 Assessment District 86-2 Assets: Cash and investments $ - $ - $ - $ - Total Assets $ - $ - $ - $ - Liabilities: Payable to trustee $ - $ - $ - $ - Total Liabilities $ - $ - $ - $ - Assessment District 85-PD Assets: Cash and investments $ 2,571,018 $ 1,296,633 $ 1,353,978 $ 2,513,673 Receivables: Accounts 1,311 1,298 1,311 1,298 Taxes 22,083 21,020 22,083 21,020 Interest 3,450 2,709 3,444 2,715 Total Assets $ 2,597,862 $ 1,321,660 $ 1,380,816 $ 2,538,706 Liabilities: Accounts payable $ 66,680 $ 479,305 $ 493,779 $ 52,206 Accrued liabilities 7,729 22,203 7,729 22,203 Payable to trustee 2,523,453 1,495,463 1,554,619 2,464,297 Total Liabilities $ 2,597,862 $ 1,996,971 $ 2,056,127 $ 2,538,706 CFD 88-2 Assets: Cash and investments $ 4,430,413 $ 4,348,830 $ 4,148,614 $ 4,630,629 Receivables: Taxes 2,696 4,717 2,696 4,717 Interest 3,798 3,253 3,798 3,253 Restricted assets: Cash and investments with fiscal agents 60 - 44 16 Total Assets $ 4,436,967 $ 4,356,800 $ 4,155,152 $ 4,638,615 Liabilities: Payable to trustee $ 4,436,967 $ 1,188,565 $ 986,917 $ 4,638,615 Total Liabilities $ 4,436,967 $ 1,188,565 $ 986,917 $ 4,638,615 186 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Balance Balance July 1, 2008 Additions Deductions June 30, 2009 Assessment District 91-2 Assets: Cash and investments $ 215,201 $ 42,898 $ 41,927 $ 216,172 Receivables: Taxes 776 521 776 521 Interest 282 232 282 232 Total Assets $ 216,259 $ 43,651 $ 42,985 $ 216,925 Liabilities: Accrued liabilities $ 309 $ 1,556 $ 309 $ 1,556 Payable to trustee 215,950 43,898 44,479 215,369 Total Liabilities $ 216,259 $ 45,454 $ 44,788 $ 216,925 CFD 93-3 Assets: Cash and investments $ 365,261 $ 436,352 $ 426,012 $ 375,601 Receivables: Interest 486 403 486 403 Restricted assets: Cash and investments with fiscal agents 149 - 123 26 Total Assets $ 365,896 $ 436,755 $ 426,621 $ 376,030 Liabilities: Payable to trustee $ 365,896 $ 436,394 $ 426,260 $ 376,030 Total Liabilities $ 365,896 $ 436,394 $ 426,260 $ 376,030 Assessment District 99-1 Assets: Cash and investments $ 602,278 $ 414,944 $ 343,975 $ 673,247 Receivables: Interest 800 688 800 688 Restricted assets: Cash and investments with fiscal agents 2,296,669 55,699 33,316 2,319,052 Total Assets $ 2,899,747 $ 471,331 $ 378,091 $ 2,992,987 Liabilities: Due to external parties/outside agencies $ - $ 32,301 $ - $ 32,301 Payable to trustee 2,899,747 1,365,056 1,304,117 2,960,686 Total Liabilities $ 2,899,747 $ 1,397,357 $ 1,304,117 $ 2,992,987 187 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 Balance Balance July 1, 2008 Additions Deductions June 30, 2009 CFD 2000-01 South Etiwanda Assets: Cash and investments $ 284,575 $ 146,481 $ 127,248 $ 303,808 Receivables: Taxes 2,806 2,114 2,806 2,114 Interest 378 326 378 326 Restricted assets: Cash and investments with fiscal agents 112,297 - 867 111,430 Total Assets $ 400,056 $ 148,921 $ 131,299 $ 417,678 Liabilities: Payable to trustee $ 400,056 $ 172,774 $ 155,152 $ 417,678 Total Liabilities $ 400,056 $ 172,774 $ 155,152 $ 417,678 CFD 2000-02 Rancho Cucamonga Corporate Park Assets: Cash and investments $ 498,719 $ 581,601 $ 565,624 $ 514,696 Receivables: Interest 664 552 664 552 Restricted assets: Cash and investments with fiscal agents 685,727 - 5,357 680,370 Total Assets $ 1,185,110 $ 582,153 $ 571,645 $ 1,195,618 Liabilities: Payable to trustee $ 1,185,110 $ 588,770 $ 578,262 $ 1,195,618 Total Liabilities $ 1,185,110 $ 588,770 $ 578,262 $ 1,195,618 AD 93-1 Masi Commerce Center Assets: Cash and investments $ 425,133 $ 266,334 $ 245,838 $ 445,629 Receivables: Taxes 687 184 687 184 Interest 565 478 565 478 Restricted assets: Cash and investments with fiscal agents 244,408 - 1,898 242,510 Total Assets $ 670,793 $ 266,996 $ 248,988 $ 688,801 Liabilities: Payable to trustee $ 670,793 $ 267,815 $ 249,807 $ 688,801 Total Liabilities $ 670,793 $ 267,815 $ 249,807 $ 688,801 188 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Balance Balance July 1, 2008 Additions Deductions June 30, 2009 CFD 2001-01 Series A Assets: Cash and investments $ 1,122,224 $ 1,340,281 $ 1,048,998 $ 1,413,507 Receivables: Taxes 42,872 92,498 42,872 92,498 Interest 4 - 1 3 Restricted assets: Cash and investments with fiscal agents 3,323,031 - 124,948 3,198,083 Total Assets $ 4,488,131 $ 1,432,779 $ 1,216,819 $ 4,704,091 Liabilities: Payable to trustee $ 4,488,131 $ 1,405,732 $ 1,189,772 $ 4,704,091 Total Liabilities $ 4,488,131 $ 1,405,732 $ 1,189,772 $ 4,704,091 CFD 2001-01 Series B Assets: Cash and investments $ 39,360 $ 73,358 $ 85,250 $ 27,468 Receivables: Interest 14 30 14 30 Restricted assets: Cash and investments with fiscal agents 91,433 - 554 90,879 Total Assets $ 130,807 $ 73,388 $ 85,818 $ 118,377 Liabilities: Payable to trustee $ 130,807 $ 74,471 $ 86,901 $ 118,377 Total Liabilities $ 130,807 $ 74,471 $ 86,901 $ 118,377 CFD 2003-01 Series A Assets: Cash and investments $ 912,036 $ 1,088,794 $ 993,616 $ 1,007,214 Receivables: Taxes - 390 - 390 Interest 1,193 1,081 1,193 1,081 Restricted assets: Cash and investments with fiscal agents 1,476,037 - 11,471 1,464,566 Total Assets $ 2,389,266 $ 1,090,265 $ 1,006,280 $ 2,473,251 Liabilities: Payable to trustee $ 2,389,266 $ 1,096,546 $ 1,012,561 $ 2,473,251 Total Liabilities $ 2,389,266 $ 1,096,546 $ 1,012,561 $ 2,473,251 189 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 Balance Balance July 1, 2008 Additions Deductions June 30, 2009 CFD 2003-01 Series B Assets: Cash and investments $ 142,310 $ 210,116 $ 198,555 $ 153,871 Receivables: Interest 190 165 190 165 Restricted assets: Cash and investments with fiscal agents 291,366 1,523 83 292,806 Total Assets $ 433,866 $ 211,804 $ 198,828 $ 446,842 Liabilities: Payable to trustee $ 433,866 $ 211,653 $ 198,677 $ 446,842 Total Liabilities $ 433,866 $ 211,653 $ 198,677 $ 446,842 CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments $ 567,579 $ 819,314 $ 625,312 $ 761,581 Receivables: Taxes 36,611 24,453 36,611 24,453 Interest 755 817 755 817 Restricted assets: Cash and investments with fiscal agents 107 - 92 15 Total Assets $ 605,052 $ 844,584 $ 662,770 $ 786,866 Liabilities: Payable to trustee $ 605,052 $ 853,816 $ 672,002 $ 786,866 Total Liabilities $ 605,052 $ 853,816 $ 672,002 $ 786,866 CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 713,922 $ 3,731 $ - $ 717,653 Total Assets $ 713,922 $ 3,731 $ - $ 717,653 Liabilities: Payable to trustee $ 713,922 $ 3,731 $ - $ 717,653 Total Liabilities $ 713,922 $ 3,731 $ - $ 717,653 190 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 (Continued) Balance Balance July 1, 2008 Additions Deductions June 30, 2009 CFD 2004-01 Assets: Cash and investments $ 1,449,979 $ 2,712,500 $ 2,506,428 $ 1,656,051 Receivables: Taxes 40,171 51,157 40,171 51,157 Interest 1,933 1,779 1,933 1,779 Restricted assets: Cash and investments with fiscal agents 3,195,638 238,557 449,117 2,985,078 Total Assets $ 4,687,721 $ 3,003,993 $ 2,997,649 $ 4,694,065 Liabilities: Payable to trustee $ 4,687,721 $ 3,497,835 $ 3,491,491 $ 4,694,065 Total Liabilities $ 4,687,721 $ 3,497,835 $ 3,491,491 $ 4,694,065 CFD 2000-03 Park Maintenance Assets: Cash and investments $ 314,796 $ 840,582 $ 520,999 $ 634,379 Receivables: Taxes 17,118 11,491 17,118 11,491 Interest 421 1,143 421 1,143 Total Assets $ 332,335 $ 853,216 $ 538,538 $ 647,013 Liabilities: Accounts payable $ 12,657 $ 82,720 $ 87,788 $ 7,589 Payable to trustee 319,678 853,152 533,406 639,424 Total Liabilities $ 332,335 $ 935,872 $ 621,194 $ 647,013 CFD 2006-01 Redemption Assets: Cash and investments $ 263,027 $ 469,722 $ 401,425 $ 331,324 Receivables: Taxes - 4,416 - 4,416 Interest 351 356 351 356 Restricted assets: Cash and investments with fiscal agents 385,640 - 4,152 381,488 Total Assets $ 649,018 $ 474,494 $ 405,928 $ 717,584 Liabilities: Payable to trustee $ 649,018 $ 477,879 $ 409,313 $ 717,584 Total Liabilities $ 649,018 $ 477,879 $ 409,313 $ 717,584 191 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 Balance Balance July 1, 2008 Additions Deductions June 30, 2009 CFD 2006-02 Redemption Assets: Cash and investments $ 136,278 $ 259,384 $ 221,898 $ 173,764 Receivables: Taxes - 1,349 - 1,349 Interest 182 187 182 187 Restricted assets: Cash and investments with fiscal agents 201,614 - 3,687 197,927 Total Assets $ 338,074 $ 260, 220 $ 225,767 $ 373,227 Liabilities: Payable to trustee $ 338,074 $ 266,101 $ 230,948 $ 373,227 Total Liabilities $ 338,074 $ 266,101 $ 230,948 $ 373,227 Employee Deduction Account Assets: Cash and investments $ 83,740 $ 3,212,929 $ 3,296,669 $ - Receivables: Accounts - 673 - 673 Total Assets $ 83,740 $ 3,213,602 $ 3,296,669 $ 673 Liabilities: Accounts payable $ 970 $ 2,240 $ 2,840 $ 370 Accrued liabilities 1,139 94,965 96,104 - Deposits payable (600) 600 - - Due to other funds 82,220 - 82,220 - Payable to trustee 11 707 415 303 Total Liabilities $ 83,740 $ 98,512 $ 181,579 $ 673 Assessment District 82-2 Assets: Cash and investments $ 5 $ - $ - $ 5 Total Assets $ 5 $ - $ - $ 5 Liabilities: Payable to trustee $ 5 $ - $ - $ 5 Total Liabilities $ 5 $ - $ - $ 5 192 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30, 2009 Balance Balance July 1, 2008 Additions Deductions June 30, 2009 Totals -All A-gency Funds Assets: Cash and investments $ 33,325,903 $ 21,722,495 $ 20,780,087 $ 34,268,311 Receivables: Accounts 371,609 1,971 371,609 1,971 Taxes 169,437 214,310 169,437 214,310 Interest 15,466 14,199 15,457 14,208 Restricted assets: Cash and investments with fiscal agents 13,018,098 299,510 635,709 12,681,899 Total Assets $ 46,900,513 $ 22,252,485 $ 21,972,299 $ 47,180,699 Liabilities: Accounts payable $ 174,545 $ 2,619,223 $ 2,713,277 $ 80,491 Accrued liabilities 9,177 118,724 104,142 23,759 Deposits payable 19,180,819 3,398,067 4,163,609 18,415,277 Due to other funds 122,933 - 122,933 - Due to external parties/outside agencies - 32,301 - 32,301 Payable to trustee 27,494,183 14,300,359 13,165,671 28,628,871 Total Liabilities $ 46,981,657 $ 20,468,674 $ 20,269,632 $ 47,180,699 193 THIS PAGE INTENTIONALLY LEFT BLANK 194 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2009 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. 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I-- O LO O C CDr (o W � O r F- O O O q � (C W N W CO r N V Cl f- O N M M @ O @ N CO M M (fl Ilir M LO LO O LO N O M W 0) r �t Cl) N to (D N O i U OO r N N LO N N N r N CO r N N r v N C >, 69 VT O- N x (D a) @ 0) C � O 0 3 w o >, y @ w o 0 "" o a m m .+ U a) @ (0 N () co a) @ U y Y U) N U a) a) U 2) ° C m '°,OF @ O N O) m o ° E t �� N x° rn o o Ei c wOx Q mE > (D n E ay m a E o n @ m a) N c w (D °o d o m -0 E xa) v E ° E a) Eoo � �) m E°- O @@@ @a @ > O a) LaCn @ U(wGC 7 7 ELN f q ° c ° x E (D E m (D Em ` o N W U ma) E E a) 43) N O O yNc 43) ° Na° @ U W t Z oX UN@ U N O a) O o C D @ CD p O N 2 p to I 0 2 U 0 0HJ m J Ca) a O a) W O c LL I- 199 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 2000 6,951,429 683,934 - 7,635,363 0.41094% 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% 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 1999/2000-2008/09; HdL, Coren & Cone 200 0 0 o O O O o C 0 O O O v O o 0) LL0 rnp) ooco000 1 rn 0') o_ O O Ln N N 0 0 0 0 Lf! Ln O O O O r O O O O O M O O V N r 0 0 0 0 0 0 0 0 O r O O O O O O O C) O O C, O O O (O _ 0 M W Lo r N C) co 00 00 M 0) 00 C)O N r 00 M r Cl) 00 00 7 N 00 O) O O Lo r N C) O O O CD 7 w Ln O O O O r O O O O O O M C) O I:N r 0 0 0 0 0 0 O O 0 O r O O O O O O O O O O O O O (14 N 0 � 0 (o N Il- I- h � O 0) 1- 7 O 00 Ih 0') Ln I- h M M I- V O O ' r O O 0) O C) Cl) N Ln O N O O C) r O O O O O O M O O V N 0 0 0 0 0 0 0 0 O r O O O O O O O O O O O O O 0 00 M rl- 0 m O Ln Cl) CO (O (C) N 0') O � O O Lo O r O O C, 7 co Ln O M O O C) r 0 0 C) O O O M C) O V N 0 0 0 0 0 0 0 0 - O r O 0 (O 0) It (D O 0 O 0) O Ln 0 0 � Cl) 0') Ln CO (O - (O 00 O O M 00 N 00 O C, M O) L17 O Cl) O O O O O O O O C) C) N C) O V 'aj y N N 0 0 0 0 0 0 0 CD C) r C) N N O VO N } m cu O w M UUj 0 0 0 0 O C) O O O CD C, O Cl) X N N LL O CD 00 It 00 Co 00 LO - 0) co C) p O � O (O r O (O Ln Ln L27 C) n (N LO O O � W r N 1l- O C, Cl) 00 Ln O M - O O O C) O C) O O O O O N C) O N N - 0 0 0 0 0 0 0 O - O r O S U U U � 0) 0) Q ^ 0 C a X N O O O_ O O C) O O O O O O 0-,)L N L-• 00 Z L6 0 00 Co CO N N � h 0) N Ln N .3 0) O H N co O 0) N 00 Lo Lo Lo I.- Lo O sn N > i O O ; Ih N N (O O O Cl) h Ln O L0 O O7 O � O O C) O O O C) O O O N O O V o O UQ- N 0 0 0 0 O O O C) r C, r O 00 j O OL 03 } r N O7 p- U a y m L m2l , 0 O oo Ln 0 0000 O000 . O o o Ln - Q Il 0 1h M 1-- M 7 I- h N 0) M 0) Ih 7 _ O U O'O >= O M In C) O O N N C1 Ln O (O O m O7 M rn 0) Z N O O O O O O O r 0 0 0 0 N O O V 7 c y O 00 � ~ N 0 0 0 0 0 C 0 0 0 O r O N u E U n n3 c m e m x3 o O_ CuN O } rY v OJ O O O O O O O O O O C, O O 0) w y N p O f6 W 0 00 O N O) 7 LO Lo 't 00 0) Lo N o L U O � LQ 0) (O LO V V N_ (O CO 00 p_ L N U U O O CO In O O O N h Ln O (O O O C J O O O O O O r 0 0 0 0 N O O V p- 3 E > O -O Q CN 0 0 0 0 0 C 0 0 0 CDr CD - N _ C U. N 6 0 N E 0 T L N E ,2 Q co O CD O O O_ O O O CD O V (m c0 T�0 'DO O mN M M 00 N 00 M O O O O (O CDO V V co 'IT1- Ln mX N c�XO C O w m O M Lo N 0 0 0 N co T 1- 0 h X E 2' N O O O O O r 0 0 0 0 N r O Tw -� Eo 0 X r 0 0 0 0 0 0 0 0 0 O r O O.O 2. a N C W N y y 0) 0: 0 C)L... a ) 0 N pO s y Q C p O L .0 O O m O O N O F O -O p N > N 3 m n m a rn m rn � C Q y _ N rn N � 16 T ON7 0, C >, LO p O L p U X (an, a N C', (6 Cl) O 3 >. o m (6 rn Q Q O i '� X C 0) Q 01 j � "O C C a c6 ptl' . � w am Lo 0 m 0 m o Q cTi cTi `m N r E m a m U - E C C N .a C * Q O) T L 03 > '- O 0) 0) C * am w O C U (n m � 00E to > d N o a'- w -p 3 p +�+ Q Q L (D m < .2 O- N > C N C d i > w > U J O O 2 0 o p m co c m b o o g m * w E E .3 m m ' c c a+ O £ Ln Q. w N U > CD NL > N LO -CVF EE ( > r o inO O -C a) N Q p O UUU0 W 220Do o U d' H c o nUof wF Z . < . + 201 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2009 2000 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Victoria Gardens Mall LLC $ 232,159,799 1.12% $ - 0.00% T Napf Meritage Ownership 152,184,510 0.74% - 0.00% Catellus Development Corporation 138,869,412 0.67% - 0.00% PK Sale LLC 119,198,220 0.58% - 0.00% Rreef America Reit II Corporation TTTT 97,017,300 0.47% - 0.00% Homecoming I at Terra Vista 96,254,228 0.46% - 0.00% EQR-Fanwell 2007 LP 94,055,253 0.45% - 0.00% Knickerbocker Properties Inc XLVII 92,427,300 0.45% - 0.00% PPF MF 9200 Milliken Ave LP 74,979,599 0.36% - 0.00% UDR Rancho Cucamonga LP 74,658,163 0.36% - 0.00% Western Land Properties - 0.00% 106,372,606 1.39% Recot, Inc. - 0.00% 72,562,251 0.95% Gruma Corporation Lessee - 0.00% 70,167,834 0.92% BHP Coated Steel Corporation - 0.00% 67,884,680 0.89% LDC Cougar LLC - 0.00% 54,040,523 0.71% West Coast Liquidators - 0.00% 53,560,579 0.70% Tamco - 0.00% 48,988,666 0.64% General Dynamics Properties, Inc - 0.00% 40,517,687 0.53% TBC Rancho Cucamonga I, Inc. - 0.00% 34,928,350 0.46% Schlosser Forge Company - 0.00% 32,195,438 0.42% $1,171,803,784 5.66% $581,218,614 7.61% Source: San Bernardino County Assessor; HdL Coren & Cone 202 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 2000 30,520,742 29,018,459 95.08% N/A 29,018,459 95.08% 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 47,952,098 46,980,688 97.97% N/A 46,980,688 97.97% 2005 54,127,529 52,957,183 97.84% N/A 52,957,183 97.84% 2006 66,040,919 65,275,661 98.84% N/A 65,275,661 98.84% 2007 80,026,153 79,931,681 99.88% N/A 79,931,681 99.88% 2008 90,046,762 90,684,532 100.71% N/A 90,684,532 100.71% 2009 94,882,654 98,200,893 103.50% N/A 98,200,893 103.50% 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 203 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2009 2000 Business Name Business Category Business Name Business Category Active Sporting Goods/Bike Stores Albertsons Grocery Stores Liquor Ameron International Contractors Am Pm Mini Mart Service Stations Apple Computer Electronics/Appliance Stores Ameron International Contractors Bass Pro Shops Sporting Goods/Bike Stores Ameron Steel Pipe Contractors Best Buy Electronics/Appliance Stores Autonation U S A Used Automotive Dealers Chevron Service Stations Best Buy Electronics/Appliance Stores Circuit City Electronics/Appliance Stores Circle K Grocery Stores Beer/Wine Convenience Retailers Service Stations Circuit City Electronics/Appliance Stores Costco Discount Department Stores Claim Jumper Restaurants Liquor Day Creek AM PM Service Stations Costco Discount Department Stores Home Depot Lumber/Building Materials Gulf South Medical Supply Light Industrial/Printers JC Penney Department Stores Home Depot Lumber/Building Materials Living Spaces Furniture Home Furnishings Mervyns Department Stores Lowes Lumber/Building Materials Montgomery Ward Department Stores Macys Department Stores Office Depot Office Supplies/Furniture Novartis Animal Health Health/Medical Proficient Food Farm Products/Equipment Paul S TV Electronics/Appliance Stores Rancho Mobil Service Stations Rancho Mobil Service Stations S W School Supply Office Supplies/Furniture Sears Grand Department Stores Stater Bros. Grocery Stores Liquor Southwire Company Light Industrial/Printers Tamco Heavy Industrial Tamco Heavy Industrial Target Discount Department Stores Target Discount Department Stores Volt Information Sciences Light Industrial/Printers Wal Mart Discount Department Stores Vons Grocery Stores Liquor Walters Wholesale Electric Plumbing/Electrical Supplies Wal Mart Discount Department Stores West End Material Supply Lumber/Building Materials West End Material Supply Lumber/Building Materials Source: Hinderliter, de Llamas&Associates; State Board of Equalization 204 THIS PAGE INTENTIONALLY LEFT BLANK 205 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 2000 - 146,875,000 13,475,928 160,350,928 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 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. 206 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 - - 160,350,928 5.34% 1,354 - - 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% 2,492 207 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 2000 - 146,875 146,875 1.28% 4.62% 1,205 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% - 2,327 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 2008 per capita personal income was not available as of the CAFR publication date. 208 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2009 City Assessed Valuation $ 20,705,335 Redevelopment Agency Incremental Valuation 9,311,320 Adjusted Assessed Valuation $ 11,394,015 City Percentage Total Share of Applicable ' Debt 6/30/08 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.618% $ 293,425,000 1,813,367 Chaffey Community College District 19.801% 166,392,310 32,947,341 Chaffey Joint Union High School District 40.721% 101,360,000 41,274,806 Alta Loma School District 98.693% 20,944,873 20,671,124 Central School District 96.437% 10,720,755 10,338,774 Etiwanda School District CFD Nos. 1, 2 &3, 2004-2&2007-1 100.000% 26,755,000 26,755,000 Etiwanda School District CFD No. 7 21.530% 14,225,000 3,062,643 Etiwanda School District CFD No. 8 68.006% 7,345,000 4,995,041 Etiwanda School District CFD No. 9 70.844% 9,925,000 7,031,267 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 90.690% 20,300,000 18,410,070 Fontana Unified School District 0.701% 200,845,251 1,407,925 Upland Unified School District 0.417% 57,241,250 238,696 City of Rancho Cucamonga CFD's 100.000% 104,595,000 104,595,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 3,270,000 3,270,000 Total overlapping tax and assessment debt 1,037,344,439 276,811,054 Direct and Overlappinq General Fund Debt San Bernardino County General Fund Obligations 9.039% 741,470,000 67,021,473 San Bernardino County Pension Obligations 9.039% 688,325,591 62,217,750 San Bernardino County Flood Control Dist General Fund Oblig 9.039% 117,495,000 10,620,373 Chaffey Community College District General Fund Obligations 19.801% 12,630,666 2,500,998 Cucamonga School District Certificates of Participation 31.106% 12,140,000 3,776,268 Fontana School District Certificates of Participation 0.701% 53,225,000 373,107 Upland Unified School District General Fund Obligations 0.417% 1,530,000 6,380 City of Rancho Cucamonga General Fund Debt 100.000% - - West Valley Vector Control District Certificates of Participation 25.873% 3,785,000 979,293 Total gross direct and overlapping general fund debt 1,630,601,257 147,495,642 Less: Fontana Unified School Dist QZABs supported by investment fund 14,220 Total net direct and overlapping general fund debt 147,481,422 Total overlapping debt $ 2,667,945,696 424,306,696 City direct debt 445,765,050 Total direct and overlapping debt $ 870,071,746 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.; HdL, Coren &Cone 209 CITY OF RANCHO CUCAMONGA Legal Debt Margin Information Last Ten Fiscal Years 2009 2008 2007 2006 Debt limit $ 427,275,583 $ 414,196,025 $ 370,340,380 $ 321,072,427 Total net debt applicable to limit - - - - Legal debt margin $ 427,275,583 $ 414,196,025 $ 370,340,380 $ 321,072,427 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 $ 11,394,015,547 Debt limit (3.75% of assessed value) 427,275,583 Debt applicable to limit: General obligation bonds - Legal debt margin $ 427,275,583 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 210 Fiscal Year 2005 2004 2003 2002 2001 2000 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 203,025,995 $ 187,893,846 $ 179,356,402 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 203,025,995 $ 187,893,846 $ 179,356,402 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 211 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 2000 24,848 1,865 4,853 3.70 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 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. 212 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) 1998 118,432 3,001,896 25,347 N/A 1999 121,840 3,179,658 26,097 N/A 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 - - 6.5% NOTES: 12008 Personal Income unavailable as of the CAFR publication date. 2The unemployment rates for the City of Rancho Cucamonga was not available prior to calendar year 2000. Unemployment rates for San Bernardino County were available for this period of time. However, management believes it would be misleading to mix County data with City data. Sources: (1) State Department of Finance (2) Redevelopment Agency (3) State of California Employment Development Department 213 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 Chaffey Community College 1,300 1 1.68% 475 8 0.87% Etiwanda School District 1,267 2 1.63% 933 1 1.71% Alta Loma School District 923 3 1.19% 705 2 1.29% City of Rancho Cucamonga 908 4 1.17% 850 3 1.55% Amphastar Pharmaceuticals 880 5 1.13% - - - Southern California Edison 800 6 1.03% 450 9 0.82% Mercury Insurance Company 550 7 0.71% - - - West Coast Liquidators 521 8 0.67% - - - Frito-Lay, Inc. 561 9 0.72% 600 4 1.10% CIVIC Steel Fabricators 517 10 0.67% - - - 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% "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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