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HomeMy WebLinkAbout2011/06/30 Comprehensive Annual Financial Report City of � Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2011 City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2011 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, 2011 TABLE OF CONTENTS Page Number INTRODUCTORY SECTION Letterof Transmittal ..............................................................................................................................i CityOfficials.......................................................................................................................................xxxii OrganizationChart............................................................................................................................ xxxiii Certificate of Achievement for Excellence in Financial Reporting .................................................... xxxiv FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT............................................................................................... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................. 3 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statementof Net Assets ........................................................................................................ 15 Statementof Activities............................................................................................................ 16 Fund Financial Statements: Balance Sheet- Governmental Funds................................................................................... 18 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets.............................................................................................. 23 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................... 24 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statementof Activities............................................................................................................ 26 Budgetary Comparison Statement (Budgetary Basis) - General Fund..................................27 Budgetary Comparison Statement (Budgetary Basis) - Fire District ..................................... 28 Statement of Net Assets - Proprietary Funds ........................................................................ 29 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds.............................................................................................. 30 Statement of Cash Flows - Proprietary Funds....................................................................... 31 Statement of Fiduciary Net Assets- Fiduciary Funds............................................................ 32 Notes to Financial Statements...................................................................................................... 33 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet- Nonmajor Governmental Funds...................................................... 80 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds.................................................................... 96 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax................................................................................................................................. 112 Recreation............................................................................................................................. 113 ParkDevelopment................................................................................................................. 114 Beautification......................................................................................................................... 115 LightingDistricts.................................................................................................................... 116 Landscape Maintenance Districts......................................................................................... 117 Transportation....................................................................................................................... 118 PedestrianGrant................................................................................................................... 119 Community Development Block Grant.................................................................................. 120 Assessment Administration................................................................................................... 121 San Sevaine/Etiwanda Drainage.......................................................................................... 122 AirQuality Improvement........................................................................................................ 123 SouthEtiwanda Drainage..................................................................................................... 124 Lower Etiwanda Drainage..................................................................................................... 125 Masi Commerce Center........................................................................................................ 126 MeasureI .............................................................................................................................. 127 LibraryServices .................................................................................................................... 128 California Literacy Program .................................................................................................. 129 AssetForfeiture .................................................................................................................... 130 UsedOil Recycling Grant...................................................................................................... 131 COPSProgram Grant........................................................................................................... 132 DrainageFacilities................................................................................................................. 133 CAState Library.................................................................................................................... 134 Library Services & Technologies Act.................................................................................... 135 Litter Reduction Grant........................................................................................................... 136 Energy Efficient& Conservation Block Grant....................................................................... 137 Senior Outreach Grant.......................................................................................................... 138 UndergroundUtilities............................................................................................................. 139 Safe Routes to School Program ........................................................................................... 140 Foothill Blvd. Maintenance.................................................................................................... 141 Citywide Infrastructure Improvement.................................................................................... 142 COPS Secure our School Grant........................................................................................... 143 The Big Read Library Grant.................................................................................................. 144 Department of Homeland Security Grant.............................................................................. 145 Public Resource Grants........................................................................................................ 146 Proposition1B....................................................................................................................... 147 Integrated Waste Management............................................................................................. 148 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES (Continued) Budgetary Comparison Schedules (Budgetary Basis)- Special Revenue Funds (Continued): Proposition 42—Traffic Congestion Mitigation ..................................................................... 149 Justice Assistance Program.................................................................................................. 150 Senior Transportation Service .............................................................................................. 151 Homeland Security Grant 2005............................................................................................. 152 Budgetary Comparison Schedules (Budgetary Basis)- Capital Project Funds: Assessment District 82-1 ...................................................................................................... 153 Assessment District 84-1 ...................................................................................................... 154 CFD 2000-01 South Etiwanda .............................................................................................. 155 CFD 2000-02 Rancho Cucamonga Corporate Park............................................................. 156 CFD 2000-03 Rancho Summit.............................................................................................. 157 CFD2001-01......................................................................................................................... 158 CFD 2003-01 Project Fund................................................................................................... 159 Public Library Bond Act—2000............................................................................................. 160 CFD 2004-01 Rancho Etiwanda ........................................................................................... 161 CFD 2003-01 Cultural Center............................................................................................... 162 CFD 2006-01 Vintner's Grove............................................................................................... 163 CFD 2006-02 Amador on Route 66...................................................................................... 164 Redevelopment Agency- Capital Project............................................................................. 165 Budget Comparison Schedule (Budgetary Basis)—Debt Service Fund: Redevelopment Agency- Debt Service................................................................................ 166 Combining Statement of Net Assets - Internal Service Funds.................................................... 168 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds................................................................................... 169 Combining Statement of Cash Flows - Internal Service Funds................................................... 170 Combining Balance Sheet-All Agency Funds............................................................................ 174 Combining Statement of Changes in Assets and Liabilities - AIIAgency Funds......................................................................................................................... 182 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2011 TABLE OF CONTENTS Page Number STATISTICAL SECTION Financial Trends: Net Assets by Component— Last Nine Fiscal Years............................................................ 191 Statement of Activities (Condensed)— Last Nine Fiscal Years ............................................ 192 Fund Balances of Governmental Funds— Last Nine Fiscal Years....................................... 194 Changes in Fund Balances of Governmental Funds - LastNine Fiscal Years.......................................................................................................... 195 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property...................................... 196 Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years.................................. 197 Principal Property Taxpayers—Current Year and Nine Years Ago...................................... 198 Property Tax Levies and Collections— Last Ten Fiscal Years............................................. 199 Principal Sales Tax Remitters—Current Year and Nine Years Ago..................................... 200 Debt Capacity: Ratios of Outstanding Debt by Type— Last Ten Fiscal Years.............................................. 202 Ratios of General Bonded Debt Outstanding—Last Ten Fiscal Years ................................ 204 Directand Overlapping Debt................................................................................................. 205 Legal Debt Margin Information— Last Ten Fiscal Years.......................................................206 Pledged-Revenue Coverage—Last Ten Fiscal Years..........................................................208 Demographic and Economic Information: Demographic and Economic Statistics—Last Ten Calendar Years..................................... 209 Principal Employers—Current Year and Seven Years Ago................................................. 210 Operating Information: Full-Time and Part-Time City Employees by Function—Last Seven Fiscal Years .............. 211 Operating Indicators by Function—Last Seven Fiscal Years............................................... 212 Capital Asset Statistics by Function— Last Seven Fiscal Years........................................... 213 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2011 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor L. DENNIS MICHAEL•Mayor Pro Tem SAM SPAGNOLO Council Members WILLIAM J.ALEXANDEP, CHUCK BUQUET, DIANE WILLIAMS -. City Manage'JOHN R.GILLISON THE CITY OF RANCHO CUCAMONGA r — RANCHO C,,UCAMONGA December 21, 2011 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, 2011. 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 fixed 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, 2011, 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, 2011, 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•www.CityofRC.us December 21,2011 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 168,181 and encompasses approximately 40.2 square miles. It is located between the cities of Upland to the west, Ontario to the south, Fontana to the east and is in the western section of San Bernardino County which is in the southern part of the State of California. The local economy includes a diverse business base of office, light manufacturing and distribution, and retail which emphasizes the City's efforts at attracting and retaining sales tax generating businesses to help provide a stable financial base. Government: The City of Rancho Cucamonga (the City) was incorporated in 1977 as a general law city under the provisions of the Government Code of the State of California, and operates under the Council- Manager form of city government. The City officials elected at large include a Mayor and four City Council members, a City Clerk and a City Treasurer. The Mayor and Council members are elected on a staggered basis for a term of four years. There is no limit on the number of terms an individual can serve as Mayor or as Council members. The Mayor and City Council appoint the City Manager and City Attorney. Reporting Entity and Its Services: The City has included within its reporting entity for financial reporting purposes all agencies for which the City is financially accountable. These agencies include the Rancho Cucamonga Redevelopment Agency, the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District,the Rancho Cucamonga Library and the Rancho Cucamonga Public Financing Authority. The City provides accounting services to all these agencies. Additional information on these agencies can be found in Note La. in the notes to the financial statements. The City of Rancho Cucamonga is a general law city governed by the State of California Government Code and local ordinances and provides quality service by blending the talents of City staff and utilizing other agencies. Certain services necessary to continue the high quality of life in Rancho Cucamonga such as water, sanitation(i.e., sewage) and police are furnished by the ii December 21,2011 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: From an economic perspective,the United States is out of the recession that has ailed it these past few years. Growth is projected to pick up during the second half of 2012. Although California is leading the recovery, issues with the State budget as well as a stagnant housing market will continue to be a drag on the growth experienced statewide as well as locally. Historically, Rancho Cucamonga's economic base has been one of the Inland Empire's strongest. Job and payroll growth have far exceeded regional and California rates since 1990. The city's competitive lease rates, transportation network and community amenities continue to attract businesses of all types. In addition to its manufacturing and distribution sectors, the city's commercial office sector has grown and many new Class A facilities were constructed in the last few years to accommodate future growth. Rancho Cucamonga has also seen a migration of highly educated technicians,professionals and executives over the past few years and many of the City's resident workers have jobs in management,professional, and technical occupations. Budgetary Control: The City adopts an annual budget where each department's budgeted appropriations are controlled at the character of expense level. These levels are defined as personnel, operations, capital outlay, capital improvement projects and transfers. Although the budget is monitored at the character of expense level, the legal level of budgetary control, that is the level at which expenditures cannot exceed appropriations, is the department level within the General Fund and at the function level for the Special Revenue, Debt Service and Capital Projects Funds. Budgetary control is further maintained by the use of an encumbrance system. Encumbrances at year end are reported as a reservation of fund balance. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored throughout the year. iii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 2011/12 total $49,546,380. The CIP includes improvements to sidewalks and landscaping, drainage improvements, construction of a replacement City Maintenance Yard crew facility, design and plan review for the Banyan Fire Station Expansion and the Jersey Fire Station Training Facility, the undergrounding of utilities on two of the City's main thoroughfares, playground improvements and parking lot renovation at two of the City's parks, design and plan review for the Etiwanda Avenue grade separation at the Metrolink tracks, construction of the Base Line Road at I-15 Interchange improvements, and pavement rehabilitation at various locations. 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 2010/11, 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. iv December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga The City of Rancho Cucamonga is self-funded for the first $350,000 of loss for general liability claims and purchases coverage for losses ranging from $350,000 to $20 million. Additionally, the City is self-funded for the first $150,000 of loss for workers' compensation claims and purchases coverage for losses ranging from$150,000 to $50 million. Pension Benefits: The City provides pension benefits for all employees through a statewide plan managed by the California Public Employees Retirement System (Ca1PERS). The City has no obligation in connection with employee benefits offered through this plan beyond its annual contractual 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 2010/11 Redevelopment Agency: Economic Development The Redevelopment Agency's economic development goals continue to focus on creating high- end wage-earning jobs; business attraction, retention and expansion; improving the quality of life for residents and businesses; increasing the City's tax base; and providing opportunities for public and private partnerships, including private investment in the community. The Redevelopment Agency (the Agency) implements programs and activities that will achieve these goals, thereby adding to the growth and expansion of the local business community. Some of the efforts undertaken include: Business Development: During the past year— despite the economic downturn — approximately 940 new businesses began operation in Rancho Cucamonga. Local and Regional Business Development and Outreach Programs: The Agency provides a number of programs to assist companies that are considering locating to Rancho Cucamonga or with the expansion of existing business. Agency programs that are include:: • Site selection and relocation assistance • Rancho Advantage pre-submittal planning • Electrical certification rebate program • Business consulting and workshops • Job referral/applicant screening services • International trade assistance • Business resource center • Business Appreciation Week • Business and Broker Visitations • Business communications and resources (website, newsletters, e-bulletins, tourism profiles) • Business marketing programs v December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Tourism: As part of its economic development efforts, the Agency continues to promote tourism opportunities advancing its "Gateway to a Southern California Adventure," theme. Rancho Cucamonga continues to receive recognition in travel and tourism magazines, and through regional and statewide internet travel and tourism websites. Affordable Housing The Redevelopment Agency offers a number of programs which provide permanent affordable workforce housing. Home Ownership: Citywide 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 117 families. Northtown Home Ownership Program: The Redevelopment Agency partnered with the Northtown Development Corporation to implement a home ownership program, which has assisted 48 families in their pursuit to become home owners. Family/Senior Housing Rental Opportunities: Housing that is affordable to families who want to live and work in Rancho Cucamonga continues to be a challenge. Affordable rents for family and senior housing range from $352- $604 for a studio apartment; $357-$662 for a one-bedroom unit; and $424-$811 for a two- bedroom unit. The following is a summary of the accomplishments of the Agency to date. Family Housing • Las Casitas Apartments— 14 units • Rancho Verde Apartments— 104 units • Mountainside Apartments— 188 units • Sycamore Springs Apartments—96 units • Monterey Village Apartments— 110 units • Villa del Norte Apartments—88 units • Pepperwood Apartments—228 units • Sunset Heights Apartments— 116 units • Rancho Verde East Expansion—40 units • Villaggio at Route 66-131 units • San Sevaine Villas—225 units Senior Housing • Heritage Pointe Apartments—48 units • Olen Jones Apartments—96 units • Villa Pacifica Apartments— 158 units Additional Housing Programs/Activities The Agency has developed or participated in a number of other housing related programs including: • Mobile Home Rental Assistance Program vi December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Workforce Housing Marketing Strategy • San Bernardino County Homeless Partnership • Foreclosure Prevention Workshops Capital Improvements The Redevelopment Agency is responsible for funding capital improvement projects to assist in the elimination of blighted conditions within the community and to encourage additional investment by the private sector. The more significant projects the Agency has funded this year include: • Upper Cucamonga Storm Drain and Hellman Avenue Widening Improvements • East Avenue Master Plan Storm Drain • Foothill Boulevard Improvements • Etiwanda/San Sevaine Regional Storm Drain • 1-15Base Line Interchange • Pacific Electric Trail • Corporate Yard Expansion • Demens Basin/Hellman Fire Station Site Preparation Although the Redevelopment Agency was able to assist in funding several projects to improve transportation corridors and protect businesses and residents through flood control improvements, other projects were not able to be funded due to the State of California's takeaway of$32 million in redevelopment funds. Future projects may also be in jeopardy if the State continues to take money designated for projects that support Rancho Cucamonga. Engineering Services: The Department is comprised of one lead section, the Engineering Administration Section, headed by the Director of Engineering Services/City Engineer, and five subordinate sections. The following provides highlights of the major accomplishments achieved during the reporting period and a description of the major capital projects completed. En ing eerina Administration Section In addition to overseeing the operations of the Engineering Services Department's full-time and contract employees and $24 million combined operating and capital budgets, the Engineering Administration Section managed several significant initiatives and projects this year. Key items this year included continued streamlining and improvements to the operating policies and procedures of the Municipal Utility, updating the City's comprehensive Capital Improvement Program document, groundbreaking ceremony for the Foothill Boulevard street improvements, Pacific Electric Trail and Route 66 Trailhead, and continued design of several multi-year capital projects of citywide/regional significance, such as the Foothill Boulevard Widening Project (Grove Avenue to Vineyard Avenue),the Hellman Avenue Storm Drain Project, and Base Line/1- 15 Interchange Improvements. vii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Capital Improvements Section The Capital Improvements Section is responsible for the development and implementation of the City's Capital Improvement Program and the design, inspection and contract administration of various City-funded public improvement projects including paving, curb and gutter, sidewalks, landscape and irrigation, storm drains, traffic signals, City buildings, and park facilities. A major accomplishment for the Capital Improvements Section this year was performing the first ever bridge removal in the City. The old Southern Pacific Railroad Bridge over Foothill Boulevard was removed Summer 2010; the bridge was 105-feet long, 17-feet wide and weighed over 200 tons. The Capital Improvements Section also completed Phase I of the Hellman Avenue Storm Drain Project this year. And a continued priority for the Section has been maintaining the Annual Comprehensive Capital Improvement Program document which gives a 5-year forecast for each active capital endeavor budgeted by the City. A total of 15 Capital Improvement Projects amounting to over$18.5 million dollars were completed during Fiscal Year 2010/11. The following are some of the key capital projects that were completed during Fiscal Year 2010/11: • Removal of the old Southern Pacific Railroad Bridge over Foothill Boulevard • Directional Guide Sign Project • Citywide Bridge Deck Maintenance,Phase 2 • Phase I of the Hellman Avenue Storm Drain Project • Haven Avenue Pavement Rehabilitation from 4th Street to Foothill Boulevard • Hillside Road Pavement Rehabilitation from Beryl Street to Archibald Avenue • Beryl Street Pavement Rehabilitation from Sunflower to North City Limit • Wilson Avenue Pavement Rehabilitation from Carnelian Street easterly 1400' • Calle Vejar Street Improvements from approximately 150' west of Avenida Leon to Avenida Castro and Avenida Leon Street Improvements from Arrow Route to Calle Vejar • Highland Avenue Sidewalk Improvements from Rochester Avenue to east of Day Creek Channel • Church Street Parkway Landscape from Rochester Avenue to Hyssop Drive Project • Acoustic Panels and Window Shades at Paul A. Biane Library Project 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 participating in a multi-city interconnection project that, when completed, will synchronize all of the intersections along Arrow Route, Carnelian Street/Vineyard Avenue, Archibald Avenue and Milliken Avenue throughout the entire city limits. Transportation Development staff also completed the synchronization of 8 intersections along Haven Avenue, added a new traffic signal at Hermosa Avenue and Church Street, and received a Federal grant to implement the Safe Routes to School program. viii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Land Development Section Land Development is responsible for the review and conditioning of proposed developments, as well as the technical plan check, permit issuance, and construction inspection of developer- funded public improvements such as paving, curb and gutter, sidewalks, landscape and irrigation, storm drains, traffic signals, and park facilities. This year, a major priority for the Section has been continuing its efforts toward utilizing staff resources more heavily, rather than relying on consultants' services, due to the slow down in the economy. To this effort, staff project managed the Civic Center Generator Project; a major undertaking at City Hall this year. Other noteworthy endeavors for this year have been continuing to assist the Inland Empire Utility Agency in processing construction permits for installation of their reclaimed waterlines, issuing permits for residential curb house number painting, and issuing permits for the new parking permit districts. Section staff also assisted the Planning Department in streamlining the Development Review Process. Environmental Programs Section The Environmental Programs Section is charged with administering the City's environmental programs which aim to encourage the preservation of natural resources and prevent stormwater pollution, thereby ensuring compliance with state and federal mandates such as AB 939 and the National Pollutant Discharge Elimination System (NPDES). Highlights for this year included updating the mandatory refuse payment ordinance; providing two mulch giveaway events for residents; and the completion of the NPDES Local Implementation Plan. The Local Implementation Plan is a requirement and was completed entirely by staff, saving the City an estimated$7000 in consultant fees. Municipal Utility Section The Rancho Cucamonga Municipal Utility (the Utility) functions as a "spot utility" providing electric service to a limited number of newer commercial developments including and surrounding the Victoria Gardens Regional Center. Beginning January 2011, the Utility became its own Scheduling Coordinator (SC) with the CAISO to schedule and account for all power flows through the CAISO. The City has contracted out with Riverside Public Utilities (RPU) to become its SC Agent on the Utility's behalf. The Utility has had notable advances in its Energy Efficiency Program this year. The Utility brought its first net metering (solar) customer on the grid,which allows the customer to be virtually self-sustaining—energy wise—and also allows for the capacity to provide excess energy back to the Utility. The Utility also issued energy efficiency lighting rebates to 3 customers. The Utility rolled out a Quarterly Customer Newsletter aimed at educating customers and providing them information about Utility programs as well as energy efficiency tips and current initiatives. Finally,the Utility was recognized by the American Public Power Association (APPA) for its outstanding safety practices, and received the Electric Utility Safety Award for Safe Operating Practices. Public Works Services: The Public Works Services Department is the steward of the City's growing infrastructure of buildings, streets, storm drains, parks and landscape improvements. To fulfill its broad mandate, the Public Works Services Department is headed up by the Public Works Administration Group ix December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 2010/11: Administration Section • The design process for the Public Works Service Center expansion was completed and construction began in July 2011. This expansion will provide the space greatly needed to accommodate the City shifting from a growth period to a maintenance mode. The building will be constructed with sustainable, environmentally-friendly materials and will feature California native landscaping as well as solar panels to lower our demand for water and electricity. The construction is anticipated to be completed in late Fall of 2012. Facilities Maintenance Section • Epicenter and Adult Sports Park Sports Lighting Replacement Project: As a part of the replacement of sports lighting at the Epicenter and Adult Sports Park, 3 softball and 2 soccer fields will have more energy efficient lamps installed. New technology in the ballasts will allow the replacement of 1,500 watt lamps with 1,000 watt lamps on these fields which will result in a savings in electricity, but it will also result in fewer ballast changes each year. Specifications will be completed during FY 2010/11 and the project will start after the baseball season in September 2011 and will be completed in December 2011. • EECBG Stimulus Package: In FY 2009/10 the Public Works Services received approximately $1.3 million from the Energy Efficiency and Conservation Block Grant (EECBG) funding for the replacement of the variable air volume (VAV) boxes and HVAC control system. The installation of new digitally controlled VAV boxes and an advanced HVAC control system will provide an estimated 15-20% greater efficiency in controlling air conditioning and heating for significantly improved climate control and comfort for the building occupants. The system will compare real-time space temperature, outside air conditions, and equipment capabilities so the equipment can be turned on at an appropriate time to ensure maximum comfort and efficiency. The specifications for this project are complete and went out to bid in March 2011. The project was awarded in May 2011 and will continue through FY 2011/12. • In addition to the HVAC work at the Civic Center, construction began on a new emergency generator enclosure at the southeast corner of the north parking lot of City Hall that will house two emergency standby generators that will provide emergency power to City Hall during power failures. The project was awarded in October 2010 and was completed in June 2011. • Many smaller projects were completed during FY 2010/11 including: Floor tile replacement at the RC Family Sports Center, Stadium locker room carpet replacement, and Corporate Yard roof repairs. x December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Streets,Fleet, and Storm Drain Maintenance Section • Fleet Shop Modifications: We currently have 10 CNG vehicles (6 sweepers, 3 dump trucks and 1 Honda sedan) in our City fleet. During FY 2009/10, Public Works Services received a grant from the South Coast Air Quality Management District (SCAQMD) via the Mobile Source Air Pollution Reduction Review Committee (MSRC) for $117,500 toward the fleet shop modifications to accommodate the repair and maintenance of CNG vehicles at the Public Works Services Center. This is the latest of several grants we have received from SCAQMD for alternative fuel vehicles/projects. Design was completed during early FY 2010/11 and modifications will be completed by December 2011. • Street Name Sign Replacement Program: Street names signs completed during this fiscal year were predominantly located between Day Creek Blvd. and Etiwanda Avenue from Church Street on the south to the northern city limit. The new street name signs are constructed of highly retroreflective materials and have been well received by the community and emergency response agencies. • Bridge Deck Maintenance: As part of the Caltrans bridge deck inspection program, the City receives a bi-annual report on the general condition of our bridge decks. From this report and inspections by our contractor, a maintenance plan is created. Phase I of the maintenance was completed in May 2010. Phase II of the maintenance project started in October 2010 and was complete in Spring 2011. Parks and Landscape Maintenance Section • The City of Rancho Cucamonga was recognized by the Department of Forestry and Fire Protection for effectively managing public tree resources throughout the past year. The Tree City USA award was presented at a tree planting ceremony during the Arbor Day Festivity in May. • Red Hill Park: Staff completed the Red Hill Park Cobblestone project to stop erosion into the lake. • Recycled Water Update: Phase Il of the recycled water project is well under way and is ready to come on line. 10 parkway and median islands sites in various landscape maintenance districts and 2 park sites (Victoria Arbors Park and the Adult Sports Complex)was connected to the recycled water system at the end of November 2010. • Park and Landscape Update: Staff continues to increase the use of mulch to create an environment for healthier plants and lower water usage. Park crews along with NPDES and Burrtec have set up a program where the City's wood waste is being recycled and reused throughout the city as mulch. Mulch helps to reduce soil moisture evaporation, cools the soil and allowing beneficial micro-organisms to thrive and creates a weed barrier. The use of mulch is not only aesthetically appealing and improves the beauty of the landscape,but also helps in reducing the cost of plant material,water and labor. Planning: The Planning Department processed a wide variety of projects during the 2010/11 fiscal year. The following are the highlights of those activities. xi December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Current Planniniz In Current Planning, a number of major development projects, permit entitlements and special projects were processed including the start of the comprehensive Development Code Update. Approximately 1,580 construction plan checks and 187 rechecks were completed. Some of the major development projects that were processed and/or inspected were: • Lazy Dawg, a casual dining restaurant, is currently constructing a free-standing building of over 9,300 square feet on Fourth Street between Buffalo Street and Richmond Avenue. One of their well-known features is the outdoor patio that will accommodate pets for dining with their owners. They have publicly commented that they have gotten their construction approvals for this restaurant faster than many other cities have processed their restaurants that have not required construction. • Farrell's Ice Cream Parlour is currently renovating the old "Macaroni Grill" site on Foothill Boulevard in the Terra Vista Town Center. This highly anticipated "retro" restaurant is planning to open before the end of 2011. • 99 Ranch Grocery Store opened on the southeast corner of Archibald Avenue and Base Line Road. This has been a very popular shopping destination providing a variety of food products for our residents' shopping experience. • A Development Review for Ryland Homes was approved by the Planning Commission for 70 single-family lots on 30.93 acres of land in the Low Residential District (2-4 dwelling units per acre) in the Etiwanda North Specific Plan, located on the north side of Day Creek Boulevard, east of the Southern California Edison Corridor. • Five Guys Restaurant has opened in the Terra Vista Shopping Center on Haven Avenue north of the CVS Pharmacy and Foothill Boulevard. They have been rated "Number One" of all hamburgers and our residents have proved that it is a very popular choice of places to eat. • RaPour Restaurant is currently under construction at 7900 Kew Avenue within the Victoria Gardens Lifestyle Center. This high-end restaurant and bar will provide a unique dining and entertainment experience that is currently experienced in the downtown Los Angeles area. • Richmond American Homes is completing the last of the building of single-family homes within the Victoria Arbors Master Plan with the design review of 31 single-family lots on 8.79 acres of land in the Mixed Use District located on the northwest corner of Victoria Park Lane and Long Meadow Drive. • Hobby Lobby, a craft-style store that includes floral, fabric, hobby equipment, seasonal d6cor and party supplies, has remodeled the old "Mervyn's Department Store" space on Foothill Boulevard in the Terra Vista Town Center, occupying approximately 73,000 square feet. Their Grand Opening was held in October 2011. • Nongshim Holdings is adding 73,454 square feet to an existing 265,676 square foot industrial building for additional production lines located at 12155 Sixth Street. xii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Toby Keith's "I Love This Bar and Grill" received approval from the Planning Commission in summer of 2010, and interior construction began in the late fall at the Victoria Gardens Lifestyle Center. This new addition to Victoria Gardens will occupy the former West Elm furniture store, a subsidiary of Williams-Sonoma, which closed in 2009. Toby Keith's will occupy a lease space of nearly 16,000 square feet and will also include a 770 square foot covered outdoor dining area. The bar area will be unique, encompassing over 1,100 square feet and featuring over 70 bar stools. Patrons will also be able to dance to live bands performing on a 750 square foot raised platform located inside the building. ■ An industrial/warehouse complex comprised of 12 buildings and 12 parcels was approved by the Planning Commission in November 2010 consisting of a triangular shaped property of approximately 904,000 square feet (20.7 acres) located about 640 feet west of Hellman Avenue on the south side of 8th Street and the south and north sides of 7th Street. ■ A new Baker's Drive-thru Restaurant of approximately 2,300 square feet is currently under construction in the Victoria Commons Shopping Center on the southeast corner of Foothill Boulevard and Rochester Avenue. ■ A new Taco Bell fast food drive-thru restaurant of 2,432 square feet was constructed at 9709 Base Line Road within an existing shopping center in the Neighborhood Commercial (NC) District at the southeast corner of Base Line Road and Archibald Avenue. ■ The K. Hovnanian housing tract is currently under construction. The project consists of 79 single-family homes on 34.1 acres of land in the northeast corner of the City in the housing development of Rancho Etiwanda Estates. ■ Lewis Apartment Communities is currently constructing a multi-family housing development consisting of 192 units on 11.15 acres of land within the Residential High (H) Development District (24-31 d/u per acre) of the Terra Vista Community Plan on the south side of Church Street between Elm Avenue and Spruce Avenue. ■ The first comprehensive Development Code Update since 1983 is currently underway and is expected to be completed by the end of Fiscal Year 2011. Advance Planning The Advance Planning section was involved in the following special projects: • Staff applied for the Compass Blueprint Demonstration Project, a Southern California Association of Governments (SCAG) project, on October 21, 2010 for the review of Foothill Boulevard Transit Oriented Development and Bus Rapid Transit possibilities. This year staff was contacted by SCAG and informed of the award of up to $125,000 for the proposal. • The continued implementation of the Neighborhood Stabilization Program (NSP). In 2008 the City received $2.1 million in Housing and Urban Development Funds to stabilize neighborhoods with high foreclosure rates. A total of 12 properties were acquired, this includes 6 by homeowners using down payment assistance and 6 by the City for reuse/resale. Of the 6 properties acquired by the City, 3 were under the Acquisition/Rehabilitation and Reuse activity and 3 were under the Acquisition/Rehabilitation and Resale activity. In July 2011, 2 of the properties acquired under the Reuse activity were transferred to the House of xiii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Ruth and the third will be transferred to the Pomona Valley Habitat for Humanity soon. The 3 properties acquired under the Resale activity will be rehabilitated and sold to income eligible homebuyers to create first time home ownership opportunities. • The continued implementation of the Energy Efficiency and Conservation Strategy (EECS), which includes the Civic Center HVAC activity (which is currently in process), Energy Efficient Revolving Loan (10 loans processed), Energy Efficient Appliances Rebate (126 rebates processed), and Energy Efficiency Coordinator activities. Historic Preservation Historic Preservation activities included the following: • Historic Preservation Month for 2011 was celebrated throughout the month of May and consisted of activities such as the Annual "Mother's Day Tea" hosted by the Etiwanda Historical Society; a proclamation was presented to the City Council in recognition of Preservation Month; informational historic booth displays at the Biane Library; and a "Local History Night" that was an evening event for the public that was hosted by the Library Services Department and the Planning Department on May 20, 2011. • At the May 20, 2011 "Local History Night", the City launched the new Historic Preservation Website as part of a joint effort with the Library staff and through the procurement of an $80,000 grant through the State Library Fund. • Planning staff continues to work with the Library Services staff on the Local History 2.0 grant awarded in 2009. • Chaffey-Isle House - Continued monitoring of construction activity on the restoration of the Chaffey-Isle House. • The Pacific Electric Train Depot was placed on the National Register of Historic Places by the United States Department of the Interior. National Register designation will allow the City to apply for additional funding and grant opportunities. • The City successfully purchased the Pacific Electric Train Depot and approximately 1 acre of property from SANBAG as well as approving an amended lease agreement for the remaining approximately 3 acres of property. Depot and site improvements are on hold awaiting resolution of the ability to encumber RDA funds. • The Historic Preservation Ordinance was adopted by the City Council on June 1,2011. • A development/design review application is being processed for the property adjacent to the Cucamonga Service Station. • Continue working with library staff on the Local History Digital Resources Project. The third batch of materials was sent to the digital consultant along with the inputting of data into the CONTENTdm software. xiv December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • A Mills Act contract was processed for the Nosenzo-Smiderle House on 8068 Archibald Avenue. • Archive Center—updating and cataloging continues to be an ongoing task. • Staff is currently processing the Johnson House map and Landmark Designation. • Restoration was completed on the historical trellis by the Solid Ground Brethren Church at the historic Goerlitz property located at 6558 Hermosa Avenue. • A Mills Act contract was processed for the Bartholow House at 12920 Bartholow Drive. • A request to designate the Pearson House as a Designated Local Landmark District located at 6956 Etiwanda Avenue was approved. • A Mills Act contract was processed for the Emery House located at 7403 Archibald Avenue. 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 14,514 inspections, responded to over 1200 complaints and investigations, and issued almost 1,866 permits during the 2010/11 fiscal year. The Department continues to improve communication with customers by enhancing public relations through website development, providing user friendly forms online, creation and design of an informative department brochure, revision and updating forms and handouts, and the publication of a quarterly newsletter. The Department continues to work on updating the current fee study and anticipates taking the new fees to the City Council in December for a formal adoption. Building Inspection The Building Inspection Section has assumed the enforcement responsibilities of mobile home parks and has been working with the parks to discuss outstanding issues and concerns, while assigning an Inspector to the parks that is responsible for ensuring 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. Additionally, this section provides support to the Fire Department and Engineering staff for inspection services for the new fire station on Hellman Avenue. xv December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Plan Check and Support Services The Plan Check and Permit Section continue to address the reduction of projects by keeping all projects in-house for plan review and inspection services. Additionally, the Building Inspectors have enhanced their customer service to include over the counter plan review. 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 performs Wildland Interface reviews within the Very High Fire Hazard Severity Zones, and they continue 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, and Grading Services Our Grading section provides review and approval of rough and precise grading plans for construction of residential and commercial projects. This section meets with developers, neighborhood groups and local residents to discuss plans and proposed projects, along with investigates complaints regarding a wide variety of building and construction. Additionally, this section continues to provide cross department support to the Engineering and Planning Departments, with project review during the entitlement process, performing reviews of the Storm Water Quality documents, and acting as the City Land Surveyor for the Engineering Services department. Code Enforcement This section continues to provide services for enforcing requirements of municipal code,property maintenance standards, zoning related issues, and promoting and educating the general public to maintain healthy, safe, and clean living and working environments. Code Enforcement receives requests for service each year on certain areas of the Municipal Code, such as property maintenance and health and safety concerns. This section has a comprehensive program which protects a property owner's investment, promotes public health and welfare, and enhances the quality of neighborhoods. It is an integral part of the City's commitment to neighborhood preservation. When homes and businesses are properly maintained, it has a positive effect on the appearance of our community. During FY 2010/11, Code Enforcement continued to promote the volunteer program and had three (3) very active individuals who assisted staff with a variety of tasks. A Shopping Cart Retrieval Ordinance was adopted which required business owners to retrieve their carts within 48 xvi December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga hours of being removed from their premises. In addition, they continued their successful neighborhood clean-up efforts by assisting over 180 residents and collecting approximately 16- tons of garbage. Finally, this section is responsible for enforcing municipal codes against owners who have abandoned or vacated their properties. During this year, Code Enforcement handled over 3,800 complaints in response to nuisance abatement for 31 cases of abandoned homes and more than 150 registered vacant homes. Community Services: Senior Services The motto of the James L. Brulte Senior Center is Stay Healthy, Live Longer. Thousands of seniors in Rancho Cucamonga have embraced this philosophy for life and are active participants at our dynamic Senior Center. Offering a variety of recreation, education, fitness, cultural, nutrition, health and wellness programs and services, the Senior Center continues to be the focal point for older adult services in Rancho Cucamonga. The Senior Center is a place where senior adults can spend the best years of their lives! At the core of the Senior Center's expansive program is the daily lunch program which provides inexpensive hot meals to over 190 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 Service, provides essential transportation to the seniors in Rancho Cucamonga. The 17 member Senior Advisory Committee had one of its most productive years to date. Boasting several accomplishments and a successful year of fundraising for the Silver Fox Express, the Committee hopes to continue to build on past successes. The Senior Center has addressed many challenges over the past year in meeting the needs of older adults throughout our community. The Center continues to be a treasured community resource that is an essential link in the aging network, offering a broad range of services and activities and access to many other community resources. The James L. Brulte Senior Center is the place "For the Best Years of Your Life." Cultural and Performing Arts The Lewis Family Playhouse at the Victoria Gardens Cultural Center completed its fifth season presenting a wide variety of performances for all ages and interests, offering a great menu of entertainment options including music, dance, comedy, family theatre, Broadway-style musicals and even documentary films. The Rancho Cucamonga Community Theatre also brought three delightful new productions to the stage this year: Lilly's Purple Plastic Purse, The Gingerbread Man, and Anne of Green Gables. xvii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Special Events and Special Projects Last year over 27,200 community members attended the Department's major community-wide special events. Last year's special events included: Movies and Concerts in the Park, Founders Festival, Cinco de Mayo Celebration, and Springtime Movies in Town Square. 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 Summer Sports Camp at Alta Loma High School was again offered this year for the community's youth. Campers participated in a structured camp filled with sports, games, swimming, board games, crafts and movies. A wide variety of Adult Sports Leagues and Tournaments were available for adult community members as well. Finally, the Northtown Partnership, a collaboration between the City of Rancho Cucamonga Community Services Department and The Northtown Housing and Development Corporation, continued to provide recreation and sports activities in a safe environment to the residents in this portion of the city. The City has currently added a new Healthy Cooking class as well as a Gardening class to the residents of Northtown. Most programs are open to youth and adults. Youth and Family The Community Services Department has the largest contract class program in San Bernardino County. This year the program offered a variety of recreational, leisure time classes such as: Music, Dance, Fitness, Dog Obedience, Child Development, and Arts & Crafts. Classes were offered at City Facilities and local studios. A total of 1,152 classes were offered during the past year with a focus on supporting a Healthy RC lifestyle. RC Family Resource Center The RC Family Resource Center provides a link to over 58 non-profit/social service organizations providing emergency food and clothing, counseling, General Education Development (GED) preparation, case management, family crisis intervention, domestic counseling, adult and youth life skill classes,parenting classes, support groups and much more. Additional Department Activities Volunteer opportunities continued to grow and expand this past year as staff continued to find new ways to utilize volunteers throughout the City. During the last year volunteers worked at numerous events and activities. Last year over 50,000 hours of volunteer services were provided by the Department's volunteer core. Providing opportunities for citizen involvement is an important aspect of the philosophy of the City and the Department. The Rancho Cucamonga Epicenter is home to the highest attendance ranked Southern California team in the Single `A' Baseball League, the Rancho Cucamonga Quakes. The team is a California Affiliate of the Los Angeles Dodgers. Quakes' baseball is played on the Stadium field between April and September each year. On non-game days and during the off-season,the facility is available for rent. xviii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Police Department: The City of Rancho Cucamonga contracts with the San Bernardino County Sheriff's Department for general law enforcement services. The Police Department has 135 sworn officers, 39 general employees and 96 volunteers which include Reserves, Citizen Patrol, Equestrian Patrol and Explorers. In addition to basic patrol services the Rancho Cucamonga Police Department also provides the following: School Resource Officers; Bicycle Enforcement Team; Multiple Enforcement Team; Traffic Enforcement; Detective Unit; Alcohol Compliance Team; and a Retail Theft Team. The City of Rancho Cucamonga continues to hold a reputation as the premier city in the Inland Empire. According to the CQ Press, the City of Rancho Cucamonga is rated year after year as one of the `safest' cities in the United States of America with a population over 75,000. The City of Rancho Cucamonga and its Police Department share a great deal of pride in this accomplishment and enjoy a great working relationship. Together, they provide residents and business owners with the type of safe community other cities envy. In 2011, the following programs and projects highlight the inter-department collaboration and community support that justifies such high ratings: The Public Safety Video Network(PSVN) The PSVN is intended to leverage police resources as a"force multiplier" and provide a safe and secure environment for those living or visiting the City of Rancho Cucamonga. It began with a proof of concept and a presentation made to the City Manager's Office to approve the PSVN policy,which will eventually go before the Mayor and Members of City Council in early 2012. Initially, the city will focus on enhancing public safety in and around Victoria Gardens. Our medium and long term goals are to include many strategic areas within the city. The initial funding will result in little to no cost to the city and will be funded through Justice Assistance Grants awarded by the Office of Justice Programs. As part of this collaborative effort, the Police Department will work closely with other city departments to implement the PSVN with cameras and/or supporting infrastructure installed in each indentified location. The PSVN command and control center will be located at the Police Department. Crime Prevention Unit As a result of necessary cuts to the Police Department's budget, the Crime Prevention Unit was largely affected. Being reduced from five (5) positions to one (1), the unit was left virtually ineffective. The Police Department has begun to rebuild the unit, however, with significant changes. The unit is now being managed by a deputy sheriff who is auditing current programs, adopting new ideas and implementing alternative methods of public information distribution. Additionally, the unit will build a strategic plan for the future as the station regains personnel numbers in coming years. The focus of the "new" Crime Prevention Unit, or possibly the Information Exchange Unit, is to be much more communicative with the residents of the city xix December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga about what is trending and how they can best protect themselves and stay current with vital information. Public Service Messages The Police Department organized a working group comprised of police department and city staff to invent a campaign aimed at educating the community about traffic safety. In Rancho Cucamonga, like many other jurisdictions throughout the state, there has been a notable increase in traffic related deaths; specifically vehicle versus pedestrian. Year to date totals in the City of Rancho Cucamonga reflect 11 fatalities, 6 of which were pedestrians. The city plans to work with an outside marketing firm interview the working group and submit design and logo's that will best target the demographic identified. It is a great approach and a good step toward learning how to push quality and timely information out to the community. CopBook CopBook is a network similar to FaceBook; however, is controlled to only allow a specific group of users to join. Users can create profiles, list details of current investigations, contact information, and other investigative information. Users can communicate with other users through messages and a chat feature and share real time critical information; information is power. Although new, this concept is currently being used by other police department's and is proving to be a valuable tool in the fight against crime. 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. The Fire District emphasizes a risk reduction strategy to educate the community and enforce life safety regulations that are designed to protect natural resources, secure the economic vitality of the community and improve the quality of life for its citizens. The Fire District emergency response platform is seven paramedic-staffed engine companies and two ladder companies operating out of six, soon to be seven fire stations. These crews are trained and equipped to handle a variety of emergency situations. They are strategically deployed throughout the City to ensure a rapid and effective response designed to quickly assess the emergency situation and initiate actions that will stop its escalation and bring it under control. In this way Fire District members save lives, reduce the impacts of injury and illness, preserve property and protect the environment. Working in conjunction with other providers such as the San Bernardino County Sheriff Department's Rancho Cucamonga Station, the Fire District has been a vital partner in public safety in the community since the formation of the Alta Loma Fire District in 1931. The District continues this tradition of service by constantly reviewing and refining its administrative and operational procedures and policies in order to ensure its resources are maximized in this effort. During the 2010/11 fiscal year,District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: xx December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Began construction of the new Hellman Avenue Fire Station(177). • Purchased and received firefighting gel units for use on structures threatened by approaching wildfires as budgeted for in the FY 2009/10 Adopted Budget. • Reduced staffing on a daily basis by one on-duty firefighter as a cost-savings measure. • Developed an organizational framework and adjusted the planning process accordingly. This included aligning the internal planning process to a fiscal year basis. Also, reorganized the operating budget document to accurately reflect and account for the direct and support service activities performed by the Fire District. District program managers must validate their resource allocation requests through managed and sustainable objectives • Implemented comprehensive weed and fire hazard abatement program. Assumed control of this program from the County. Performed weed and fire hazard abatement inspections on trail systems in the high fire hazard areas. Also issued seasonal abatement notices to vacant parcel owners. Procured services weed abatement contractors. Sent out 192 notices for non-compliance.Utilized District contractors to abate weeds on 71 parcels. • Continued the public education Risk WatchTM injury prevention program in a dozen preschools across the City. The comprehensive injury prevention program targeted eight major risk areas that result in serious injury or death for children under the age of five. More than 50 teachers and 1,200 students participated in the program. • Conducted first annual Junior Firefighter Camp. 25 children ages 9-13 participated in week-long activities themed around the firefighting career and fire safety in the home. • The combined efforts of Public Education and Fire Prevention to reduce the use of fireworks in the City continue to show results. After logging a steep reduction in the number of fireworks complaints from 2005 to 2009, the District determined that evening patrols could be scaled back. While we acknowledge that there remains some illegal use of fireworks, most residents are complying with the City's fireworks laws. The ability to reduce the evening patrols has helped to reduce overtime expenses incurred by the Fire District Prevention Bureau. • Emergency Management Program. Re-introduced the Community Emergency Response Team training. Conducted eight classes for over 120 students providing hands on skills and increased awareness of actions that can be taken before, during and after disasters as a means of increasing the community's disaster resiliency. Continued to develop and monitor new operational procedures as a result of the 2009 move to the Confire Dispatch Center in Rialto. Library Services: Library services in Rancho Cucamonga continued to be very busy in Fiscal Year 2010/11. In the past fiscal year we checked out over 1.2 million books, DVDs, CDs and magazines, issued over 18,000 new library cards. Over 150,000 people used a library computer or our Wi-Fi network, and over 40,000 youngsters attended a library program. Currently 215,000 borrowers own a Rancho Cucamonga library card and enjoy a collection of over 275,000 xxi December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 40,000 youngsters came to our libraries to enjoy the popular story time programs. Offered eighteen times each week at our two locations,the preschool,toddler, school-aged and teen programs offer something for children of every age. • The Summer Reading Program had over 4,500 children and teens maintaining their reading skills during the summer months. • The "Back to Basics" Children's Literacy Program served another class of 150 youngsters, improving the reading level of each child and promoting reading and literacy as a pathway to success. • The popular "Kidsmobile" bookmobile provides service to elementary schools. Stocked with books that kids love, our distinctly-designed bookmobile visits children at their school sites. The "Kidsmobile" checked out almost 50,000 items to children during this past fiscal year. Senior Services: • The Library's "Housecalls" outreach program delivers library materials via volunteers to community members who cannot come to the library. This service reaches more than 70 Rancho Cucamonga residents, and we deliver library materials ranging from books to DVDs to recorded books on CD. Information and Virtual Library 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 150,000 library customers used our free,public access computers or Wi-Fi network to search for jobs, send email, create resumes, type up school reports or just surf the Internet, while over 1,500 children, teens and adults took advantage of hands-on computer classes. Literacy Services: • Over fifty active literacy tutors and learner pairs call the Library their home to improve literacy skills. The continuation of this program is possible due to on-going support from the State Library, Community Development Block Grant funds, corporate and private donations. xxii December 21,2011 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 2010/11. • 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 2010/11. Library Foundation Highlights: • In the past year, the Library Foundation donated over $75,000 towards various library programs. Matching grants the Library received this year were used for the creation of a local history web site and for more"Play and Learn Islands". Goals for Next Year • The Library will continue to aggressively pursue grant funds from numerous agencies. The Library hopes to successfully grow the passport acceptance agency service in the coming year since it serves as an addition revenue stream for the Library. 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 an innovative Healthy RC program. The program is unique in its holistic approach in encouraging residents, businesses, and our own organization to adopt healthy, active and sustainable lifestyles and practices. This approach brings together both new and existing efforts of each City Department with the goal of improving of the quality of life in our community. Healthy RC highlights include: • Rancho Cucamonga was one of 41 sites nationwide awarded a grant in the amount of $360,000 from the Robert Wood Johnson Foundation (RWJF) to improve opportunities for physical activity and access to affordable healthy food for children and families throughout the city. xxiii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • The City was awarded a California Obesity Prevention Program grant from the California Department of Public Health to implement policy and environmental change strategies to advance obesity prevention. • The City has integrated a leadership training program into its obesity-prevention work called "Campeones para la Comunidad" (Community Champions), designed to equip residents with the skills they need to meaningfully participate in the policymaking process and build their capacity to change their environments to promote health. • In partnership with the County of San Bernardino Department of Public Health, the City implemented the Healthy RC Kids Safe Routes to School Program at 3 schools in the city to improve safety and encourage all children to walk and bicycle to school. • The City offered a free bilingual healthy eating/cooking program(CASA) to educate and support families to prepare healthier and more nutritious food, as a strategy to prevent diabetes and obesity. • The City offered a container gardening program(GROW)to educate and support families to grow their own produce and learn to prepare healthier and more nutritious meals. • As a result of an extensive community outreach process, the City adopted Farmers' Markets and Community Gardens Ordinances to facilitate access to healthy food, especially in under-resourced areas of the city. Green Sustainability The City Manager's Office has led the citywide green sustainability efforts. The Healthy Earth program strives towards a greener, cleaner Rancho Cucamonga. Identified efforts to minimize the city operation's and the community's environmental impacts from city operations and the community are in the areas of water conservation, greenhouse gas reduction, energy efficiency, waste reduction, and transportation. The focus in FY 10/11 was to continue identifying and implementing environmentally sustainable initiatives in city operations and encouraging Rancho Cucamonga residents and businesses to be more environmentally conscious. Some of the accomplishments under this initiative include: • Utilizing Energy Efficiency Block Grant funding,completed energy efficiency retrofits to 10 homes and provided 110 rebates for homeowners that purchased Energy Star appliances. • Participated in the grant-funded California Reconnect program to install public electric vehicle charging stations at various city destinations. • Launched the CTRL Tree paper waste reduction campaign in order to reduce the amount of paper consumed by city departments. • Awarded the Home Depot Healthy Communities Grant to plant new trees at Church Street Park. • Recipient of the Frontier Project's 2010 Environmental Steward Award. • Ongoing education and promotions such as Employee Earth Day event,pledge boards, and newsletter articles encouraging sustainable practices. 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. Learning&Development xxiv December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Teams have been created out of employees drawn from a cross-section of the City and representing all levels of the organization. The job of each team is to develop specific strategies that will enable us to achieve measurable, meaningful progress in the development of our organization and further build a tradition of excellence. Community Information Program The City Manager's Office oversees the citywide Community Information Program. The mission of the Community Information Program is to provide accurate,open and comprehensive information about the City of Rancho Cucamonga and its programs,policies, services, and future plans in a timely manner to those who live,work and play in the city. It produces the quarterly community newsletter Rancho Reporter;prepares and distributes news releases; answers media inquiries; oversees all programming on the City's Government Access Channel RCTV-3; produces brochures, flyers, and other literature;promotes special events; and provides media relations and public relations counsel to City departments. The City Manager's Office ensures Rancho Cucamonga citizens stay up-to-date with City news and encourages residents to use a variety of communication tools available on the City website that connect residents with the City of Rancho Cucamonga easily 24-hours a day, 7-days a week from any location. In 2010,the City launched a new website under the theme"Discover My Rancho @ www.CityofRC.us."This was the first comprehensive overhaul to the City website since 2003 and takes advantage of recent technological leaps. The website includes a number of powerful new tools to provide excellent,highly responsive service to the citizens of the community.Under the"My Rancho"feature, for example,you can create an account and customize your Rancho Cucamonga website experience. "Rancho Responds"is another new and powerful component of the site where visitors can submit and track requests on a full range of issues facing City residents. Legislative Affairs 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. The 2011 Legislative Session was especially busy with the City tracking 72 state and federal bills and sending 31 letters to state and federal legislators and the Governor advocating our position on certain legislation and issues. In particular,the City of Rancho Cucamonga was actively involved in opposing the state's actions to eliminate redevelopment agencies and was also actively involved in advocating for the City's interests during the Redistricting process. Additionally, as the City Council actively participates in regional agencies and boards, the City Manager's Office provides assistance and support. The inter-governmental agencies the City of Rancho Cucamonga participates in include SANBAG, Omnitrans, SCAG, and Metrolink. City officials are also actively involved, including assuming leadership positions, in the League of California Cities, a statewide association that advocates for cities' interests. The City Manager's xxv December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Office regularly coordinates regional meetings, providing topics and speakers that are of interest to city officials throughout the Inland Empire. 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. Cable Television Franchise Administration The City Manager's Office oversees the non-exclusive cable television franchises through enforcement of the State-issued franchise agreements, with an emphasis on citizen concerns. Charter Communications, Time Warner Cable, and Verizon FIGS TV provide cable TV service in the city of Rancho Cucamonga under state franchise agreements from the California Public Utilities Commission (CPUC). The City Manager's Office works with the cable companies to resolve customer service issues and ensures the very best possible service to Rancho Cucamonga citizens. Animal Care and Services: The Animal Care and Services Department (AC&SD) provides care, shelter, and adoption services for homeless, abandoned, and abused animals and also protects the public health, safety, and welfare of the community. This Department, which began operating in May 2006, is committed to building a community in which every adoptable pet finds a responsible home. Animal Care and Services also provides Field Services that handles requests for service on a priority response basis such as vicious/aggressive animals, injured animals, confined strays, and the pick-up of stray deceased animals. Animal Services Officers are also empowered to investigate complaints such as nuisance animals, leash law violations, and inhumane conditions. The Department provides emergency services for injured or sick stray pets, vicious/aggressive animals, and police and fire assistance on a 24/7 basis. Community involvement is an important component for the Animal Care and Services Department. This includes the development of a strong volunteer program, a foster care program, working with rescue groups and other Centers, attending community events, and adoption promotions. As a result of the Department's various programs discussed below, the Department was able to increase placement by 3%(4,134 in FY 2010/11 and 4,026 in FY 2009/10). Volunteers The Department offers a wide variety of volunteer opportunities in areas such as dog walking, cat socialization, basic dog training, bathing and grooming, as well as traditional opportunities such as computer services, clerical and cleaning. Volunteers make an important contribution to the xxvi December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga success of our programs. Some programs, such as dog walking and our pit promotions are run entirely with volunteers. They have contributed 9,625 hours of service in FY 2010/11. Adoption Promotion/Increasing Adoptability The Department increased adoption promotions using both value-added and price point strategies. Since they are the most difficult breed type to place, our initial focus was on pit bulls, running several promotions this year. The Department received a grant to further efforts to adopt pit bulls from Best Friends Animal Sanctuary. In addition to promoting adoptions, the Department instituted several promotions to make our pets more appealing to the public including obedience classes for our pit bulls; upgrading the training for our dog walking volunteers; and creating a program that focuses on pets that have been at the Center for over 4 months. This program included videos on our websites, increased publicity and more outreach exposure. Medical Services Our veterinarian has expanded the types of surgeries we are able to perform to include orthopedic surgeries. In addition to the x-ray machine which was installed as part of the phase two construction, we have acquired additional surgical instruments and our veterinarian has received training in some orthopedic techniques. Because these procedures are expensive, previously we were limited in the number we could fund. 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 We have also recruited additional part time, contract veterinarians. Community Resources The Department sponsored several fundraising events this year and continued attempts to reach out to the community. The Department has increased professional involvement with the Animal Center currently partnering with a trainer,two groomers, and a multiservice facility. Program Growth The Department is doing more outreach to the community by taking adoptable pets to more locations, at least one every weekend, including areas outside the City such as Glendora and Fontana. We have added new partners such as PetsMart locations, cat shows, and pet expos. These activities show our adoptable pets to a broader audience than would be able to see them at the Center. xxvii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Another program which is important to our placement of adoptable pets are our rescue program. This 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 rescue program by 36.5%. 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 2010/11 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, and also continued to revamp the new employee orientation. For the upcoming fiscal year, efforts will be focused on supporting the City Manager's Office initiatives to develop mid-managers, enhance employee recognition, improve employee communication efforts, and improve leadership through focused coaching and strategic goal setting efforts. Business License Division: The Business License Division of the Administrative Services Department ensures compliance with City codes as they relate to business licenses, transient occupancy and admission taxes. During Fiscal Year 2010/11 staff processed approximately 9,383 business license applications (6,969 renewals and 2,414 new filings), inspected 1,063 businesses, and collected revenues totaling $2,048,907. Finance Division: The Finance Division of the Administrative Services Department provides for the administration of financial activities such as payroll, accounts payable, accounts receivable, audits, preparation and monitoring of the budget, revenue recording and tracking, preparation of financial statements, and the establishment and maintenance of a fixed asset inventory. Finance is also responsible for business licensing and treasury management. During Fiscal Year 2010/11, the Finance Division was notified that the City received its twenty- third 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 xxviii December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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 continued to work with the Police Department to improve and add additional features to the mapping application that will be used for emergency situations in schools in the City. The Division also continued to support the mobile field application developed to assist the weed abatement inspector track parcels that were not in compliance; provided mapping for the Healthy RC Kids project that identified locations including the Southwest are, businesses such as grocery, corner stores, and fast food restaurants, and potential locations for a Farmer's Market and Community Garden in the area of interest and in the City; and created and continued to update the comprehensive Special Districts Internet Page that offers descriptions of the Districts, Engineer's Reports, Resolutions, maps and other useful special districts links. GIS, working with CyberTech, Inc., started working on a mobile application for the city. This application will provide residents and visitors with various information including shopping, dining, city facilities, school districts, property services, and report issues in the community. The application has the ability to notify residents instantly during special events and emergencies. GIS also developed a Road Closures web-based application that will allow users to view information about planned projects that affect road conditions. The application is currently being tested by Engineering staff. 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 27 full-time and 29 part-time recruitments during the 2010/11 fiscal year. The Division began the implementation of the Infinity HR system during this period. This system provides for 24-hour access by employees to important information regarding their benefits and certain employment records. Employees can update information regarding beneficiaries and dependents at their convenience. In addition, the program automates the annual open enrollment process providing more efficiency. The new system was utilized during open enrollment in November 2011. The Division also worked with the city's insurance broker to negotiate new life and disability insurance rates providing savings of over$150,000 annually. 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 collaborated with other City departments to implement Rancho Responds, a web-based Citizen Relationship Management (CRM) system to allow citizens to submit and track requests for service, submit comments, and search frequently asked questions. The Division also collaborated with other departments on the design and installation of technology services for Fire Station 177 and continued to work with the Finance xxix December 21,2011 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Division to expand the use of electronic timecards by City staff to improve efficiency by Payroll staff and staff in the various City departments. 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 Purchasing Institute's (NPI) "Achievement of Excellence in Procurement (AEP)" award for 2010, the third consecutive year the Division has received this award. As a result, the Purchasing Division is nationally recognized as an organization that practices excellence in innovation, professionalism, productivity, e-procurement and leadership. Some of the major projects that the Division worked on during the year were an upgrade of the City's phone system; a request for bid for City and Fire District fuel supply; and a request for proposal for the Fire District that would remove and replace an obsolete station alerting system from each station. 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. The Division continually monitors the various services provided by it financial institution to ensure that the City is receiving the most comprehensive services for the most economical price. 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, 2010. 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. 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-three 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. xxx December 21, 2011 To the Honorable Mayor, Members of the City Council and Citizens of the City of Rancho Cucamonga 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, John illison Tamara L. Layne City Manager Finance Director xxxi CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUKE 30, 2011 City Council Name Term Expires L. Dennis Michael Mayor 2014 Sam Spagnolo Mayor Pro-Tem 2012 William J. Alexander Council Member 2014 Chuck Buquet Council Member 2012 Diane Williams Council Member 2014 Administration and Department Heads City Manager and Executive Director of the Rancho Cucamonga Redevelopment Agency Jack Lam Assistant City Manager John Gillison Deputy City Manager/Administrative Services (acting) John Gillison Deputy City Manager/Economic and Community DevelopmentlRDA Director (acting) Linda Daniels City and Redevelopment Agency Attorney Jaynes L. Markman Treasurer (term expires 2012) James Frost City Clerk (term expires 2012) Janice C. Reynolds Assistant City Clerk/Records Manager Debra McNay Animal Services Director Joe Pulcinella Building and Safety Official Trang Huynh Community Services Director Kevin McArdie Engineering Services Director/City Engineer Mark Steuer Finance Director Tamara L. Layne Fire Chief Mike Bell Human Resources Director Chris Paxton Library Director Robert Karatsu Planning Director James Troyer Police Chief Joe Cusimano Public Works Services Director Bill Wittkopf xxxii CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk City Council City Treasurer City Attorney City Manager Administrative Community Fire Police Services Services H I District Department Animal Care Community Library Redevelopment and Services Development Services Agency Services Building and Engineering Plann Public Works ing Safety Services Services xxxiii 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 30,2010 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. • lift 4&04*-j UMV STAi g Ah a . Coto N President SEA , , Executive Director xxxiv City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2011 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LS •000 •000 •• CERTIFIED PUBLIC ACCOUNTANTS Brandon W.Burrows,CPA David E.Hale,CPA,CFP A Professional Corporation Donald G.Slater,CPA Richard K.Kikuchi,CPA Susan F.Matz,CPA Shelly K.Jackley,CPA Bryan S.Gruber,CPA INDEPENDENT AUDITOR'S 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, 2011, 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, 2011, 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. We would like to draw the reader's attention to Note 15 — "California Redevelopment Agency Uncertainty". The note provides information on two bills passed, AB1X26 and 27 which dissolve redevelopment agencies effective October 1, 2011 and provide an option to avoid dissolution by making certain defined payments In accordance with Government Auditing Standards, we have also issued our report dated December 21, 2011, 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. 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 • CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California Accounting principles generally accepted in the United States of America require that the management's discussion and analysis as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's financial statements as a whole. The introductory section, combining and individual nonmajor fund financial statements, and statistical section, are presented for purposes of additional analysis and are not a required part of the financial statements. The combining and individual nonmajor fund financial statements are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. *4 9,-e , Voo Brea, California December 21, 2011 2 CITY OF RANCHO CUCAMONGA MANAGEMENT'S DISCUSSION AND ANALYSIS As management of the City of Rancho Cucamonga ("City"), we provide for the City's financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2011. 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 eighth consecutive year that the City has issued financial statements pursuant to Statement No. 34 of the Governmental Accounting Standards Board (GASB 34). Comparative data on the government-wide financial statements are only presented in the MD&A. Overview of the Financial Statements The City is required to present its financial statements in accordance with Generally Accepted Accounting Principles (GAAP), which includes complying with the Governmental Accounting Standards Board (GASB) pronouncements. In 2003, the City was required to implement GASB Statement No. 34 (GASB 34) which required the City to add new financial reports with a new format to the existing published Comprehensive Annual Financial Report (CAFR). The new financial reporting format includes the Government-wide Financial Statements, which are comprised of the Statement of Net Assets and the Statement of Activities (explained below), and the original reporting format, which is the Fund Financial Statements (explained on page 4), combined into a single unified format. These two statements combined with the notes to the financial statements comprise the City's basic financial statements. This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. This report also contains certain supplementary information to the basic financial statements. Government-wide Financial Statements Government-wide financial statements include the City and its component units. As stated in Note 1.a. of the notes to the financial statements, the inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga, as either blended or separately shown, is based on the provisions of GASB Statement No. 14 The Financial Reporting Entity. Although legally separate, component units function for all practical purposes as departments of the City and, therefore, have been blended as part of the primary government. The City's component units are the Rancho Cucamonga Redevelopment Agency, the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. These statements are designed to provide information about the activities of the City as a whole and present a longer-term view of the City's finances. This longer-term view is intended to illustrate the City's ability to continue functioning as a viable entity well beyond the next fiscal year's operations. The statements are prepared using the accrual basis of accounting. The accrual basis of accounting considers money available when earned and considers money spent when a liability is incurred. As such, this basis of accounting focuses on measuring economic resources that are available to the City regardless of the timing of the availability of those resources. For example, grant revenue may have been earned as of fiscal year end but may not be received until several months subsequent to fiscal year end. Under the accrual basis of accounting, this revenue would be recognized as a resource available to the City as of fiscal year end, even though the actual cash is not received for several months. An example related to expenditures would be the City's accrued interest liability. This liability is recognized as a usage of the City's resources as of fiscal year end, even though the actual cash payment will occur over an extended period of time. The accrual basis of accounting is similar to that used by most private sector companies. Accordingly, all of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, these statements reflect the capitalization and depreciation of infrastructure and other capital assets (e.g., buildings, vehicles, furniture and fixtures, etc.) as well as the recognition of various long-term liabilities (e.g., bonds payable, accrued employee benefits, claims and judgments payable, etc.). 3 The government-wide financial statements distinguish functions of the City that are principally supported by taxes, intergovernmental and use of money and property revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety- police, public safety - fire protection, public safety — animal center, community development, community services, and engineering and public works. The City's business-type activities include the Sports Complex and Municipal Utility operations. The statement of net assets presents information on all of the City's assets and liabilities, with the excess of assets over liabilities reported as net assets. This statement includes changes in "capitalized and depreciated" capital assets. The purpose behind the statement of net assets is that, over time, increases or decreases in the net assets are one potential useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows (both positive and negative) in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both the governmental activities and the business-type activities are presented on the accrual basis of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting. The government-wide financial statements can be found on pages 15 through 17 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) to pay liabilities of the current period. Expenses are recorded when a liability is incurred. Debt service, claims and judgments, and accrued employee leave benefits are not recorded as liabilities, they are expensed at the time a payment is due. Note 1.c. of the notes to the Financial Statements more fully describes each basis of accounting. Governmental funds. Most of the City's basic services are reported in governmental funds, which focus on how money flows in and out of those funds and the balances left at year-end that are available for spending. The governmental fund financial statements provide a detailed short-term view of the City's general government operations and the basic services it provides. Governmental fund information helps determine whether there are more or fewer financial resources that can be spent in the near future to finance the City's programs. The differences between the results in the governmental fund financial statements and those in the government-wide financial statements are explained in a reconciliation following each governmental fund financial statement (see pages 23 and 26 of this report). The City maintains 64 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 4 considered major funds. Major funds determination is based on guidelines established by GASB 34. Data for the other 60 governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 18 through 26 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 80 through 111 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 168 through 170 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 174 through 188 of this report. 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. 5 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 30,2011 Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Current and other assets $ 747,119 $ 739,189 $ 4,368 $ 4,489 $ 751,487 $ 743,678 Capital assets, net 730,624 721,567 28,436 29,733 759,060 751,300 TOTAL ASSETS 1,477,743 1,460,756 32,804 34,222 1,510,547 1,494,978 Long-term liabilities outstanding 430,209 439,835 - - 430,209 439,835 Other liabilities 22,055 23,439 918 1,038 22,973 24,477 TOTAL LIABILITIES 452,264 463,274 918 1,038 453,182 464,312 Net assets: Invested in capital assets, net of related debt 392,183 402,124 28,436 29,733 420,619 431,857 Restricted 551,039 473,381 19 1,318 551,058 474,699 Unrestricted 82,257 121,977 3,431 2,134 85,688 124,111 TOTAL NET ASSETS $ 1,025,479 $ 997,482 $ 31,886 $ 33,185 $ 1,057,365 $ 1,030,667 Net assets, the difference between a government's assets and its liabilities, may serve over time as one potential useful indicator of a government's financial position. Net assets includes the City's capital assets, cash balances, amounts receivable from other entities, and other similar resources offset by payments due to vendors, interest payable, long-term debt, and other similar obligations. In the case of the City, total assets (of which 50% represents capital assets of the City, including infrastructure) exceeded total liabilities by$1,057,365,401 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 $26,698,756, or 2.6%, during the current fiscal year, reflecting positive change in the governmental activities of $27,997,338 and a negative change in the business-type activities of$1,298,582. 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 $7,760,207, net of accumulated depreciation. The increase in capital assets is due to the addition of capital construction project and infrastructure improvement to 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 $7,808,193. This increase is due to an increase in notes and loans receivable of approximately$10.4 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. The City also fully paid its unfunded actuarial accrued liability for the PARS retirement enhancement plan, resulting in an $8.7 million prepaid asset as of June 30, 2011 (additional information can be found in Note 10 in the financial statements). Both of these increases were offset with corresponding decreases in cash and investments of $7.2 million (primarily due to the prepayment noted above), combined with the accounts and grants receivable of$5.6 million from the receipt on previous outstanding accounts. • Long-term debt outstanding (e.g., bonds, Agency loans, claims and judgments payable, and accrued employee benefits) decreased by $9,626,372. This decrease was due primarily to principal payments on outstanding debt in the amount of$10,538,219. This decrease was offset by additional accrued interest for a developer loan and other deferred payment in the amount of $827,803, a net increase in claims and judgments in the amount of $332,757, and a net decrease in accrued employee benefits in the amount of $44,081. The remaining change is due to the amortization of bond premiums. • Other liabilities (e.g., accounts payable, accrued interest, due to other governments, etc.) decreased by$1,503,984, primarily in accrued liabilities, due to timing of payments at year end. 7 TABLE 2 CHANGES IN NET ASSETS (IN THOUSANDS) Year ended June 30, 2011 Governmental Business-Type Activities Activity Total 2011 2010 2011 2010 2011 2010 REVENUES: Program Revenues: Charges for services $ 13,167 $ 14,628 $ 11,903 $ 11,518 $ 25,070 $ 26,146 Operating grants and contributions 7,865 6,276 - - 7,865 6,276 Capital grants and contributions 6,121 59,877 - - 6,121 59,877 General Revenues: Taxes: Property taxes 143,094 152,193 - - 143,094 152,193 Admissions taxes 7 12 7 12 Transient occupancy taxes 1,827 1,587 - - 1,827 1,587 Sales taxes 22,751 21,586 - - 22,751 21,586 Franchise taxes 5,643 5,708 - - 5,643 5,708 Intergovernmental 813 522 - - 813 522 Use of money and property 17,024 21,379 334 384 17,358 21,763 Other 5,094 5,054 9 33 5,103 5,087 TOTAL REVENUES 223,399 288,810 12,253 11,947 235,652 300,757 EXPENSES: General government 49,581 81,893 - - 49,581 81,893 Public safety-police 28,028 27,425 - - 28,028 27,425 Public safety-fire protection 24,550 26,526 - - 24,550 26,526 Public safety-animal center 2,493 2,476 - - 2,493 2,476 Community development 19,132 22,444 - - 19,132 22,444 Community services 12,703 13,066 - - 12,703 13,066 Engineering and public works 30,427 33,091 - - 30,427 33,091 Interest on long term debt 28,465 28,387 - - 28,465 28,387 Sports Complex - - 2,253 2,088 2,253 2,088 Municipal Utility - - 11,388 9,778 11,388 9,778 TOTAL EXPENSES 195,379 235,308 13,641 11,866 209,020 247,174 INCREASE (DECREASE) IN NET ASSETS BEFORE TRANSFERS 28,020 53,502 (1,388) 81 26,632 53,583 TRANSFERS (23) 67 23 (67) - - INCREASE (DECREASE) IN NET ASSETS 27,997 53,569 (1,365) 14 26,632 53,583 Restatement of Net Assets(See Note 12) - 476 - 476 - 952 Change in Net Assets from Prior Year $ 27,997 $ 54,045 $ (1,365) $ 490 $ 26,632 $ 54,535 8 The above condensed statement of activities of the City's governmental and business-type operations for the period ended June 30, 2011 shows total net assets increased by $26,632,094. Governmental activities increased the City of Rancho Cucamonga's net assets by $27,997,338, accounting for 105.7% of the total growth in net assets. This increase is offset by the decrease of$1,365,244 in the Business-Type activities' net assets. In order of total dollar amount of change, the most significant changes in revenue were in the categories of capital grants and contributions; property taxes; and use of money and property. • The decrease in capital contributions and grants of $54,986,472 is primarily due to various non- recurring activities which occurred in the prior fiscal year: the capitalization of infrastructure in the amount of approximately $23.36 million contributed by developers; a $13.86 million intergovernmental reimbursement received for the Haven Avenue Grade Separation project with an additional $2.56 million being recognized for other infrastructure improvements; also revenues in the amount of $10.08 million were recognized to move funds to be utilized for undergrounding utilities from an agency fund to a special revenue fund. No similar transaction occurred in the current fiscal year. • The decrease in property taxes of$9,098,918 is due primarily to property tax assessments adjusting to the broader real estate market decline. Almost all the decrease in general property taxes is property tax increment revenue 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 decrease in use of money and property of $4,403,899 is a continued result of the economic downturn which began in December 2008. Interest rates have continued to decline and many of the City's higher yielding longer-term investments have either matured or have been called. Additionally, as noted above, the City's cash and investments decreased by$7.2 million from the prior year which further contributed to the decrease in interest earnings. The most significant change in expenses was in general government. • General government expenses decreased $32,418,209 because in the prior fiscal year, the City paid $32 million to the County of San Bernardino (County) Supplemental Educational Revenue Augmentation Fund (SERAF) in accordance with SB 26. The current year SERAF payment is $6,610,857 which is about a $25.4 million decrease from the prior year. 9 The following presents the cost of each of the City's seven governmental activities— general government, public safety— police, public safety—fire protection, public safety — animal center, community development, community services, engineering and public works, and interest on long-term debt. Revenue generated by these programs consists of charges for services, operating contributions and grants, and capital contributions and grants. Expenses consist of the total expenses for the governmental activities which include expenses unrelated to program revenues. The net cost of services (total cost less revenues generated by the activities) is the amount that was paid from general revenues, i.e., revenues not related to a specific function or program. Governmental Activities (I n Thousands) Total Cost Net Cost of Services of Services 2011 2010 2011 2010 General government $ 49,581 $ 81,999 $ (45,769) $ (78,944) Public safety-police 28,036 27,425 (26,573) (25,919) Public safety-fire protection 24,550 26,525 (23,523) (25,020) Public safety-animal center 2,493 2,476 (2,282) (2,024) Community development 19,073 22,444 (15,665) (18,493) Community services 12,715 13,066 (8,402) (8,752) Engineering and public works 30,466 32,985 (17,547) 33,013 Interest on long-term debt 28,465 28,387 (28,465) (28,387) Total $ 195,379 $ 235,307 $ (168,226) $ (154,526) 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, assigned and unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. On pages 18 - 21, the governmental funds balance sheet is shown. The combined fund balance of $619,492,068 increased $5,918,154 or 0.96%. The combined fund balance of represents the beginning point for the reconciliation of the balance sheet of governmental funds to the statement of net assets detailed on page 15 of this report. This total includes the General Fund balance of$72,010,054, which decreased by $1,353,413 from the prior year. Of the total General Fund balance, $10,409,332 or 14.46% constitutes nonspendable reserves, which means that these reserves must be maintained intact; $4,743,201 or 6.59% are restricted fund balances which are the result of external limitations on spending; $52,252,923 or 72.56% are committed fund balances which have resulted in internally-imposed limitations placed upon the funds by the City Council; the assigned reserves of$4,604,598 or 6.39% are intended by the City Council for specific purposes, but are neither restricted nor committed, in accordance with City's policy. The committed fund balances noted above are in accordance with the City's Fund Balance Policy. This policy ensures a prudent level of protection for the finances of the City in times of emergencies, revenue declines, and other unforeseen events. Certain committed funds enable the organization to operate in a business-like structure to address future liabilities while certain other committed funds help to support the 10 City's credit rating which is also important to promote fiscal excellence. A brief description of the committed fund balances follows: • Committed for changes in economic circumstances: The fund balance committed 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. • Committed 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. • Committed for self-insurance: The fund balance commitment for self-insurance is for payment of general liability claims primarily through the use of interest earnings on the reserve but not limited to such in the event of an unfavorable interest rate environment. • Committed for working capital: The fund balance committed for working capital 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 commitment has been established by the City Council at 5% of the City's General Fund budget for the upcoming fiscal year. • Committed for employee leave payouts: This commitment sets aside funding for future employee leave payouts such as sick leave, vacation, etc., and is separate from recurring personnel costs. • Committed for law enforcement: This commitment represents Police Department fund balance used to facilitate unexpected equipment, facilities, or other law enforcement needs within the community. • Committed for booking fees: This commitment is to provide funding for an increase in the fees that the County of San Bernardino charges the City for the booking of prisoners. The amount of the increase was not readily determinable at the time of budget adoption due to the delay in the adoption of the State of California's budget. The balance sheet presents three other major funds, the Fire District Special Revenue Fund, the Redevelopment Agency Capital Project Fund and the Redevelopment Agency Debt Service Fund. The Fire District Special Revenue Fund (inclusive of the Fire District's General Fund, Community Facilities District (CFD) 85-1 Fund, and Community Facilities District (CFD) 88-1 Fund) has a fund balance of $14,085,277 which decreased by $2,363,287 from the prior year. This was primarily due to the Fire District beginning the construction of a new fire station, which increased the current year expenditures and at the same time decreased the fund balance by $2 million. The Fire District has nonspendable reserves of $61,341. The remaining fund balance is committed or assigned for specific purposes. The Redevelopment Agency's Capital Project Fund has a fund balance of$285,343,315 which decreased by $4,473,644 from the prior year. The decrease is mainly due to a decline in the Agency's property tax revenue which is the result of the economic downturn. The Redevelopment Agency's capital project fund balance has nonspendable reserves of $138,960,819. The remaining fund balance is restricted to fund community development projects. The Redevelopment Agency's Debt Service Fund has a fund balance of$148,689,804, which has increased by $6,426,450 from the prior year. The increase is due to the elimination of the SERAF payment to the County, offset with the decline in Agency's cash and investment and property taxes revenue. The Redevelopment Agency's debt service fund balance is fully restricted to fund future debt service payments. 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 47 special revenue funds and 13 capital project funds. 11 These funds have a combined fund balance of $99,363,618, which has increased by $7,682,048 from the prior year, primarily due to the City receiving more pre-funded grant revenue than expensing the funds in the current fiscal year. Of the total combined fund balance, $1,127,327 is nonspendable, $81,997,843 is restricted and $20,871,807 is assigned for specific purposes. The remaining fund balance is unassigned. 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 $31,886,069 of which $28,435,630 represents the amount invested in capital assets and $18,984 is restricted for the purpose of public benefit. Unrestricted net assets amount to $3,431,455. The decrease in net assets for the enterprise funds is $1,365,244, due mainly to a one-time payment for departing load charges in the current fiscal year. Net assets for the internal service funds are $14,626,644, of which $4,257,764 represents the amount invested in capital assets. Unrestricted net assets amount to $10,368,880, which will be used to cover future vehicle and equipment and computer equipment/technology replacements. Total net assets decreased for these funds by$2,276,866 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$70,125,487 were $7,229,637 more than the final budgeted revenues of $62,895,850. This positive variance was due to a one-time partial repayment of a long-term loan from the City to the Redevelopment Agency. While this transaction occurs on an annual basis with a corresponding reborrowing from the Agency, the City's need to reduce its unfunded pension liabilities was a higher priority than the Agency's need to incur debt as of fiscal year end. The General Fund's actual ending expenditures of $75,820,624 were $3,550,666 less than the final budget of $79,371,290. The main contributor to the savings across the departments was the City's attrition management program combined with 40 furlough hours for all City employees. This combined approach rendered salary and benefits savings among all departments, yet ensured the least amount of internal organizational disruption. There was also savings of $375,987 in public safety — police, primarily due to vacancies not being filled at the County Sheriff level which resulted in contract savings to the City. Community development — planning had a positive budget variance of $431,977 due to delay or postponement of certain projects in the current fiscal year. Other savings occurred in areas of contract services and part-time salaries across most General Fund departments. 12 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 $759,060,097 invested in a broad range of capital assets (see Table 3 below). This amount represents a net increase (including additions and deductions) of $37,492,742. TABLE 3 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION, IN THOUSANDS) For the year ended June 30,2011 Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Land $ 83,646 $ 83,403 $ 5,451 $ 5,451 $ 89,097 $ 88,854 Right-of-way 231,932 223,219 - - 231,932 223,219 Construction in progress 32,641 33,695 - - 32,641 33,695 Buildings and improvements 119,793 122,701 9,750 10,370 129,543 133,071 Equipment and vehicles 9,149 10,268 30 38 9,179 10,306 Furniture and fixtures 913 1,372 45 45 958 1,417 Infrastructure 251,807 246,297 13,149 13,814 264,956 260,111 Intangible 743 612 11 14 754 626 TOTALS $ 730,624 $ 721,567 $ 28,436 $ 29,732 $ 759,060 $ 751,299 The most significant change in capital assets for governmental activities is the increase in infrastructure of $21,877,187. The increases in infrastructure related to the acquisition of right of ways for streets and horse trails throughout the City, improvements to the City's streets and storm drains, traffic signal controller replacement, and library material additions. The most significant change for business-type activities is the depreciation of the various fixed assets. Additional information on the City's capital assets can be found Note 5 to in the financial statements. Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of$430,208,513 for bonds (RDA), loans (RDA), capital lease, claims and judgments payable, and accrued employee benefits compared to $439,834,885 in the prior year, a decrease of$9,626,372. (See Table 4 below). The decrease was primarily due to principal payments on outstanding debt and the amortization of bond premiums. This decrease was partially offset by an increase in the City's claims and judgments payable and its employee benefits liability. 13 TABLE 4 OUTSTANDING DEBT,AT YEAR END (IN THOUSANDS) For the year ended June 30, 2011 Governmental Business-Type Activities Activities Total 2011 2010 2011 2010 2011 2010 Tax Allocation Bonds $ 395,920 $ 404,990 $ - $ - $ 395,920 $ 404,990 Developer Loans 19,239 20,005 - - 19,239 20,005 Capital Lease 10 29 - - 10 29 CVWD- Payment Deferral 162 17 - - 162 17 Claims and Judgments Payable 2,842 2,509 - - 2,842 2,509 Accrued Employee Benefits 7,606 7,650 - - 7,606 7,650 Unamortized Bond Premium 4,430 4,634 - - 4,430 4,634 TOTALS $ 430,209 $ 439,834 $ - $ - $ 430,209 $ 439,834 Standard & Poor's Corporation and Moody's Investors Service have assigned, respectively, the tax allocation bonds ratings of"AAA" and "Aaa" upon their issuance. Additional information on the City's outstanding debts can be found in the financial statements note 7 of this report. Economic Factors and Next Year's Budgets In its third quarterly report of 2014, the UCLA Anderson Forecast calls for economic growth to gradually rebound in mid-2012 with the economy advancing at a modest 2.5% to 3% rate. Employment growth will become more meaningful with gains averaging about 150 thousand jobs per month and the unemployment rate falling to 8.6% by the end of 2013. The California forecast calls for slow growth until the end of 2012. The forecast sees virtually no growth in employment, with employment growth of 0.7% and 2.1% expected in 2012 and 2013, respectively. Locally, Rancho Cucamonga is experiencing growth; however, a stagnant housing market and high unemployment rates will continue to be a drag on growth experienced statewide as well as locally. The Fiscal Year 2011/12 General Fund Budget of $63,507,030 was adopted without the use of reserves to fund recurring operations. It represents a slight increase from the prior year of 1.14%, principally as a result of projected growth in property taxes, sales tax, and development fees. The FY 2011/12 Budget includes the continued implementation of furloughs for City staff in order to sustain core services while eliminating the need to use reserves. The City's fiscal discipline and team approach to solving its budget crisis will enable the City to continue to thrive into the future. Questions or requests for information regarding the City of Rancho Cucamonga's Fiscal Year 2011/12 budget should be directed to the Finance Department at the address below. Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. 14 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS JUNE 30, 2011 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 521,177,536 $ 2,949,218 $ 524,126,754 Receivables: Accounts 13,260,732 1,407,390 14,668,122 Taxes 8,742,205 - 8,742,205 Notes and loans 140,282,660 10,264 140,292,924 Accrued interest 462,151 1,767 463,918 Deferred loans 726,378 - 726,378 Grants 1,657,062 - 1,657,062 Prepaid costs 674,834 - 674,834 Deposits 41,568 - 41,568 Due to external parties/outside agencies 100,258 - 100,258 Deferred charges 5,476,294 - 5,476,294 Prepaid other post employment benefits 16,893,419 - 16,893,419 Prepaid PARS retirement enhancement plan 8,747,342 - 8,747,342 Land held for resale 5,488,040 - 5,488,040 Restricted assets: Cash with fiscal agent 23,388,037 - 23,388,037 Capital assets not being depreciated 348,218,683 5,451,015 353,669,698 Capital assets, net of depreciation 382,405,784 22,984,615 405,390,399 Total Assets 1,477,742,983 32,804,269 1,510,547,252 Liabilities: Accounts payable 12,436,364 724,720 13,161,084 Accrued liabilities 1,656,441 26,120 1,682,561 Accrued interest 6,750,090 - 6,750,090 Unearned revenue 442,906 - 442,906 Deposits payable 42,959 167,360 210,319 Due to other governments 726,378 - 726,378 Noncurrent liabilities: Due within one year 15,670,045 - 15,670,045 Due in more than one year 414,538,469 - 414,538,469 Total Liabilities 452,263,652 918,200 453,181,852 Net Assets: Invested in capital assets, net of related debt 392,183,411 28,435,630 420,619,041 Restricted for: Community development projects 16,690,657 - 16,690,657 Public safety 778,193 - 778,193 Fire protection 14,026,438 - 14,026,438 Community services 12,586,903 - 12,586,903 Capital projects 338,037,998 - 338,037,998 Debt service 148,689,804 148,689,804 Other 7 752,469 - 752,469 Other 8 3,641,903 - 3,641,903 Other 9 363,751 - 363,751 Public benefit- Municipal Utility - 18,984 18,984 Unrestricted 82,767,656 3,431,455 86,199,111 Total Net Assets $ 1,025,479,331 $ 31,886,069 $ 1,057,365,400 See Notes to Financial Statements 15 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30,2011 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 49,581,126 $ 3,588,085 $ 223,555 $ - Public safety- police 28,035,606 1,131,794 253,652 77,395 Public safety-fire protection 24,550,466 1,000,930 300 26,279 Public safety-animal center 2,492,725 210,948 - - Community development 19,073,512 150,473 2,707,776 550,041 Community services 12,715,076 3,248,668 214,334 850,189 Engineering and public works 30,466,021 3,836,372 4,465,363 4,617,488 Interest on long-term debt 28,464,744 - - - Total Governmental Activities 195,379,276 13,167,270 7,864,980 6,121,392 Business-Type Activities: Sports Complex 2,253,407 362,708 - - Municipal Utility 11,387,582 11,540,183 - - Total Business-Type Activities 13,640,989 11,902,891 - - Total Primary Government $ 209,020,265 $ 25,070,161 $ 7,864,980 $ 6,121,392 General Revenues: Taxes: Property taxes, levied for general purpose Admission 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 Net Assets at End of Year See Notes to Financial Statements 16 Net(Expenses) Revenues and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (45,769,486) $ - $ (45,769,486) (26,572,765) - (26,572,765) (23,522,957) - (23,522,957) (2,281,777) - (2,281,777) (15,665,222) - (15,665,222) (8,401,885) - (8,401,885) (17,546,798) - (17,546,798) (28,464,744) - (28,464,744) (168,225,634) - (168,225,634) (1,890,699) (1,890,699) - 152,601 152,601 (1,738,098) (1,738,098) (168,225,634) (1,738,098) (169,963,732) 143,094,069 - 143,094,069 - 6,594 6,594 1,827,439 - 1,827,439 22,750,935 - 22,750,935 5,642,811 - 5,642,811 812,616 - 812,616 17,024,238 334,044 17,358,282 5,093,895 9,184 5,103,079 (23,032) 23,032 - 196,222,971 372,854 196,595,825 27,997,337 (1,365,244) 26,632,093 997,481,994 33,251,313 1,030,733,307 $ 1,025,479,331 $ 31,886,069 $ 1,057,365,400 See Notes to Financial Statements 17 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2011 Special Capital Project Revenue Fund Fund Redevelopment General Fire District Agency Assets: Cash and investments $ 56,886,085 $ 14,455,557 $ 203,670,262 Receivables: Accounts 1,538,408 226,498 1,221 Taxes 5,892,188 297,440 158,449 Notes - - 140,282,660 Accrued interest 32,758 9,559 300,572 Deferred loans - - - Grants - - - Prepaid costs 556,599 61,341 16,040 Deposits 31,306 - - Due from other funds 1,895,260 - 230,051 Advances to other funds 56,482,527 - 3,953,624 Due from external parties/outside agencies 100,258 - - Land and buildings held for resale - - 4,411,829 Restricted assets: Cash and investments with fiscal agents - - 60 Total Assets $ 123,415,389 $ 15,050,395 $ 353,024,768 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,341,914 $ 328,702 $ 1,449,008 Accrued liabilities 974,265 317,988 33,530 Deferred revenues 49,046,197 - 9,703,334 Unearned revenues - - - Deposits payable 42,959 - - Due to other governments - - - Due to other funds - 318,428 313,054 Advances from other funds - - 56,182,527 Total Liabilities 51,405,335 965,118 67,681,453 See Notes to Financial Statements 18 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2011 (Continued) Debt Service Funds Other Total Redevelopment Governmental Governmental Agency Funds Funds Assets: Cash and investments $ 133,953,843 $ 101,721,301 $ 510,687,048 Receivables: - Accounts - 11,494,605 13,260,732 Taxes 612,952 1,781,176 8,742,205 Notes - - 140,282,660 Accrued interest 57,360 55,651 455,900 Deferred loans - 726,378 726,378 Grants - 1,657,062 1,657,062 Prepaid costs - 40,854 674,834 Deposits - 10,262 41,568 Due from other funds - 244,994 2,370,305 Advances to other funds - - 60,436,151 Due from external parties/outside agencies - - 100,258 Land and buildings held for resale - 1,076,211 5,488,040 Restricted assets: Cash and investments with fiscal agents 20,316,739 3,071,238 23,388,037 Total Assets $ 154,940,894 $ 121,879,732 $ 768,311,178 Liabilities and Fund Balances: Liabilities: Accounts payable $ 6,251,090 $ 2,937,791 $ 12,308,505 Accrued liabilities - 330,658 1,656,441 Deferred revenues - 12,085,934 70,835,465 Unearned revenues - 442,906 442,906 Deposits payable - - 42,959 Due to other governments - 726,378 726,378 Due to other funds - 1,738,823 2,370,305 Advances from other funds - 4,253,624 60,436,151 Total Liabilities 6,251,090 22,516,114 148,819,110 See Notes to Financial Statements 19 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2011 Special Capital Project Revenue Fund Fund Redevelopment General Fire District Agency Fund Balances: Nonspendable Prepaid costs 556,599 61,341 16,040 Deposits 31,306 - - Notes and loans - - 130,579,326 Land held for resale - - 4,411,829 Advances to other funds 9,821,227 - 3,953,624 Restricted Public safety-police - - - Community development projects - - 146,382,496 Parks and recreation - - - Engineering and public works - - - Capital improvement projects - 1,672,271 - Debt service - - - Street lighting - - - Landscape maintenance - - - Library services - - - Underground utilities - - - Information technology 349,234 - - General plan update 58,434 - - Contractual obligation 693,630 58,839 - Capital improvement projects 3,641,903 - - Committed Capital improvement projects - - - Employee leave payouts 5,338,341 2,268,079 - Vehicle and equipment replacement - 1,234,213 - PERS rate stabilization - 2,606,569 - Capital facilities repair - 1,696,679 - Working capital 3,175,352 2,580,781 - Self insurance 7,583,333 - - Booking fees 1,391,059 - - City facilities'capital repair 16,600,600 - - Changes in economic circumstances 13,745,456 - - Law enforcement 4,418,782 - - Assigned Radio system acquisition 361,722 - - Communications - 150,000 - Dispatch system acquisition - 322,395 - Capital projects 1,550,000 1,417,383 - Contract development services 1,143,475 - - Sphere of influence 695,710 - - Multi-Species Habitat Plan 200,000 - - Spay/neuter program 249,332 - - Mobile home park program 40,808 - - Continuing operations 363,751 16,727 - Unassigned - - - Total Fund Balances 72,010,054 14,085,277 285,343,315 Total Liabilities and Fund Balances $ 123,415,389 $ 15,050,395 $ 353,024,768 See Notes to Financial Statements 20 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2011 (Continued) Debt Service Funds Other Total Redevelopment Governmental Governmental Agency Funds Funds Fund Balances: Nonspendable Prepaid costs - 40,854 674,834 Deposits - 10,262 41,568 Notes and loans - - 130,579,326 Land held for resale - 1,076,211 5,488,040 Advances to other funds - - 13,774,851 Restricted Public safety-police - 778,193 778,193 Community development projects - 13,427,253 159,809,749 Parks and recreation - 1,710,426 1,710,426 Engineering and public works - 40,539,446 40,539,446 Capital improvement projects - 5,091,040 6,763,311 Debt service 148,689,804 - 148,689,804 Street lighting - 6,137,366 6,137,366 Landscape maintenance - 12,140,072 12,140,072 Library services - 6,990,328 6,990,328 Underground utilities - 10,143,867 10,143,867 Information technology - - 349,234 General plan update - - 58,434 Contractual obligation - - 752,469 Capital improvement projects - - 3,641,903 Committed Capital improvement projects - 5,911,659 5,911,659 Employee leave payouts - - 7,606,420 Vehicle and equipment replacement - - 1,234,213 PERS rate stabilization - - 2,606,569 Capital facilities repair - - 1,696,679 Working capital - - 5,756,133 Self insurance - - 7,583,333 Booking fees - - 1,391,059 City facilities'capital repair - - 16,600,600 Changes in economic circumstances - - 13,745,456 Law enforcement - - 4,418,782 Assigned Radio system acquisition - - 361,722 Communications - - 150,000 Dispatch system acquisition - - 322,395 Capital projects - - 2,967,383 Contract development services - - 1,143,475 Sphere of influence - - 695,710 Multi-Species Habitat Plan - - 200,000 Spay/neuter program - - 249,332 Mobile home park program - - 40,808 Continuing operations - - 380,478 Unassigned - (4,633,359) (4,633,359) Total Fund Balances 148,689,804 99,363,618 619,492,068 Total Liabilities and Fund Balances $ 154,940,894 $ 121,879,732 $ 768,311,178 See Notes to Financial Statements 21 THIS PAGE INTENTIONALLY LEFT BLANK 22 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2011 Fund balances of governmental funds $ 619,492,068 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 726,366,703 Bond issuance cost is an expenditure in the governmental funds, but it is a deferred charge in the statement of net assets 5,476,294 Long-term debt and compensated absences that have not been included in the governmental fund activity: Long-term liabilities (422,602,094) Compensated Absences (7,606,420) Governmental funds report pension contributions as expenditure, however in the Statement of Net Assets, any excesses of contributions over the annual required contribution (ARC)are recorded as an asset. Other post employment benefits 16,893,419 PARS retirement enhancement plan 8,747,342 Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds (6,750,090) 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. 70,835,465 Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance, to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net assets 14,626,644 Net assets of governmental activities $1,025,479,331 See Notes to Financial Statements 23 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Capital Projects Fund Fund Redevelopment General Fire District Agency Revenues: Taxes $ 48,328,889 $ 21,047,793 $ 17,560,825 Licenses and permits 3,035,648 694,084 - Intergovernmental 1,283,219 - 79,597 Charges for services 2,819,732 58,576 - Use of money and property 8,322,596 191,837 4,887,710 Fines and forfeitures 1,135,861 19,855 - Contributions 22,019 300 - Developer participation - - - Miscellaneous 4,089,271 175,195 17,814 Total Revenues 69,037,235 22,187,640 22,545,946 Expenditures: Current: General government 21,211,226 - 3,742,067 Public safety-police 27,201,778 - - Public safety-fire protection - 24,047,022 - Public safety-animal center 2,492,725 - - Community development 4,617,206 - 830,366 Community services 4,059,984 - - Engineering and public works 10,605,414 - - Capital outlay 195,580 2,630,455 10,868,008 Debt service: Principal retirement - - 3,021,803 Interest and fiscal charges - - 16,015,576 Total Expenditures 70,383,913 26,677,477 34,477,820 Excess(Deficiency)of Revenues Over(Under) Expenditures (1,346,678) (4,489,837) (11,931,874) Other Financing Sources(Uses): Transfers in 942,400 2,105,090 7,535,810 Transfers out (1,094,987) - (77,580) Other debts issued - - - Proceeds from sale of capital assets 145,852 21,460 - Total Other Financing Sources (Uses) (6,735) 2,126,550 7,458,230 Net Change in Fund Balances (1,353,413) (2,363,287) (4,473,644) Fund Balances Beginning of year 73,363,467 16,448,564 289,816,959 End of year $ 72,010,054 $ 14,085,277 $ 285,343,315 See Notes to Financial Statements 24 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Debt Service Fund Other Total Redevelopment Governmental Governmental Agency Funds Funds Revenues: Taxes $ 70,243,299 $ 15,699,116 $ 172,879,922 Licenses and permits - - 3,729,732 Intergovernmental - 16,442,770 17,805,586 Charges for services - 4,394,054 7,272,362 Use of money and property 565,180 2,096,407 16,063,730 Fines and forfeitures - - 1,155,716 Contributions - 839,587 861,906 Developer participation - 2,233,351 2,233,351 Miscellaneous - 1,043,355 5,325,635 Total Revenues 70,808,479 42,748,640 227,327,940 Expenditures: Current: General government 26,580,609 3,980,783 55,514,685 Public safety-police - 343,906 27,545,684 Public safety-fire protection - 28,733 24,075,755 Public safety-animal center - - 2,492,725 Community development - 11,558,189 17,005,761 Community services - 8,119,598 12,179,582 Engineering and public works - 7,834,624 18,440,038 Capital outlay 8,886,504 3,305,971 25,886,518 Debt service: Principal retirement 7,479,887 19,290 10,520,980 Interest and fiscal charges 12,632,271 1,186 28,649,033 Total Expenditures 55,579,271 35,192,280 222,310,761 Excess(Deficiency)of Revenues Over(Under) Expenditures 15,229,208 7,556,360 5,017,179 Other Financing Sources(Uses): Transfers in - 183,748 10,767,048 Transfers out (9,468,060) (58,060) (10,698,687) Other debts issued 665,302 - 665,302 Proceeds from sale of capital assets - - 167,312 Total Other Financing Sources (Uses) (8,802,758) 125,688 900,975 Net Change in Fund Balances 6,426,450 7,682,048 5,918,154 Fund Balances Beginning of year 142,263,354 91,681,570 613,573,914 End of year $ 148,689,804 $ 99,363,618 $ 619,492,068 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 YEAR ENDED JUNE 30,2011 Net change in fund balances-total governmental funds $ 5,918,154 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 9,719,194 Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets 9,332,272 Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 229,676 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 44,080 Governmental funds report pension contributions as expenditures, however excess of contributions over the actuarial required contributions(ARC)are capitalized and amortized in the government-wide financial statement. Other post employment benefits 400,610 PARS retirement enhancement plan 8,747,342 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. (4,050,462) Internal service funds are used by management to charge the costs of certain activities, such as equipment management and self-insurance,to individual funds. The net revenues(expenses)of the internal service funds is reported with governmental activities (2,343,528) Change in net assets of governmental activities $ 27,997,338 See Notes to Financial Statements 26 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30,2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 73,363,467 $ 73,363,467 $73,363,467 $ - Resources(Inflows): Taxes 47,604,810 48,160,620 48,328,889 168,269 Licenses and permits 3,406,600 3,124,020 3,035,648 (88,372) Intergovernmental 996,910 1,153,860 1,283,219 129,359 Charges for services 2,767,410 3,070,600 2,819,732 (250,868) Use of money and property 1,075,650 1,060,880 8,322,596 7,261,716 Fines and forfeitures 1,089,100 1,109,120 1,135,861 26,741 Contributions 30,000 35,000 22,019 (12,981) Miscellaneous 4,048,390 4,096,130 4,089,271 (6,859) Transfers in 1,341,230 942,400 942,400 - Proceeds from sale of capital asset 20,000 143,220 145,852 2,632 Amounts Available for Appropriation 135,743,567 136,259,317 143,488,954 7,229,637 Charges to Appropriation(Outflow): General government General overhead 3,169,270 11,886,150 11,772,678 113,472 Personnel overhead 415,600 1,151,470 723,951 427,519 City council 145,270 137,910 130,928 6,982 City manager 1,097,860 1,129,600 1,099,602 29,998 City clerk 2,810 2,830 2,665 165 Administrative services 208,330 208,240 205,704 2,536 Business licenses 339,160 342,820 335,610 7,210 City facilities 2,201,120 2,133,380 1,975,775 157,605 Finance 950,970 955,380 953,948 1,432 Geographic information systems 304,490 304,640 302,376 2,264 Management information services 2,642,210 2,713,160 2,588,045 125,115 Personnel 371,620 340,070 309,608 30,462 Purchasing 519,850 529,240 466,462 62,778 Risk Management 196,160 203,400 188,828 14,572 Treasury management 6,050 6,230 5,035 1,195 Records Management 591,530 519,640 503,568 16,072 Public safety-police Sheriff contract services 27,597,070 27,578,450 27,202,463 375,987 Public safety-animal control Animal control 2,517,710 2,570,020 2,505,877 64,143 Community development Planning 1,924,200 1,940,390 1,508,413 431,977 Planning commission 11,070 11,140 9,355 1,785 Code enforcement 863,540 876,000 834,654 41,346 Administration 207,460 581,330 507,927 73,403 Building and Safety 2,096,260 2,098,420 1,998,230 100,190 Parks and recreation Administration 4,436,210 4,347,010 4,057,216 289,794 Park and recreation commission 3,030 3,030 2,768 262 Public works Engineering-Construction Mgmi 654,810 594,960 562,247 32,713 Development management 731,720 734,680 677,397 57,283 Engineering-NPDES 504,560 507,300 441,500 65,800 Project management 126,790 115,840 90,051 25,789 Traffic management 236,620 217,910 196,032 21,878 Street and park maintenance 4,281,170 4,214,320 3,973,325 240,995 Vehicle and equipment maintenance 1,206,920 1,181,870 1,057,850 124,020 Facilities Maintenance 3,870,450 3,958,860 3,698,066 260,794 Capital outlay 4,073,310 4,038,510 3,837,483 201,027 Transfers out 959,850 1,237,090 1,094,987 142,103 Total Charges to Appropriations 69,465,050 79,371,290 75,820,624 3,550,666 Budgetary Fund Balance,June 30(Budgetary Basis) $ 66,278,517 $ 56,888,027 67,668,330 $ 10,780,303 Encumbrances 4,341,724 Budgetary Fund Balance,June 30(GAAP Basis) $72,010,054 See Notes to Financial Statements 27 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $16,448,564 $ 16,448,564 $16,448,564 $ - Resources(Inflows): Taxes 21,268,610 21,081,460 21,047,793 (33,667) Licenses and permits 333,970 627,170 694,084 66,914 Charges for services 77,550 42,540 58,576 16,036 Use of money and property 274,130 221,900 191,837 (30,063) Fines and forfeitures 6,300 24,110 19,855 (4,255) Contributions 3,500 1,750 300 (1,450) Miscellaneous 83,500 179,330 175,195 (4,135) Transfers in 2,105,090 2,105,090 2,105,090 - Proceeds from sale of capital asset - - 21,460 21,460 Amounts Available for Appropriation 40,601,214 40,731,914 40,762,754 30,840 Charges to Appropriation (Outflow): Public safety-fire protection 24,641,630 24,864,570 24,150,015 714,555 Capital outlay 384,800 4,293,810 4,264,666 29,144 Total Charges to Appropriations 25,026,430 29,158,380 28,414,681 743,699 Budgetary Fund Balance,June 30 (Budgetary Basis) $15,574,784 $ 11,573,534 12,348,073 $ 774,539 Encumbrances 1,737,204 Budgetary Fund Balance,June 30(GAAP Basis) $14,085,277 See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2011 Business-Type Activities-Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Total Service Funds Assets: Current: Cash and investments $ 7,408 $ 2,941,810 $ 2,949,218 $ 10,490,488 Receivables: Accounts 30,577 1,376,813 1,407,390 - Notes and loans - 10,264 10,264 - Accrued interest - 1,767 1,767 6,251 Total Current Assets 37,985 4,330,654 4,368,639 10,496,739 Noncurrent: Capital assets-net of accumulated depreciation 15,207,598 13,228,032 28,435,630 4,257,764 Total Noncurrent Assets 15,207,598 13,228,032 28,435,630 4,257,764 Total Assets $ 15,245,583 $ 17,558,686 $ 32,804,269 $ 14,754,503 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 61,097 $ 663,623 $ 724,720 $ 127,859 Accrued liabilities 18,540 7,580 26,120 - Deposits payable - 167,360 167,360 - Total Current Liabilities 79,637 838,563 918,200 127,859 Total Liabilities 79,637 838,563 918,200 127,859 Net Assets: Invested in capital assets, net of related debt 15,207,598 13,228,032 28,435,630 4,257,764 Restricted for public benefit-Municipal Utility - 18,984 18,984 - Unrestricted (41,652) 3,473,107 3,431,455 10,368,880 Total Net Assets 15,165,946 16,720,123 31,886,069 14,626,644 Total Liabilities and Net Assets $ 15,245,583 $ 17,558,686 $ 32,804,269 $ 14,754,503 See Notes to Financial Statements 29 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2011 Business-Type Activities-Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Total Service Funds Operating Revenues: Sales and service charges $ 362,708 $ 11,540,183 $ 11,902,891 $ 590 Rent 287,399 - 287,399 - Miscellaneous 9,184 - 9,184 10,216 Total Operating Revenues 659,291 11,540,183 12,199,474 10,806 Operating Expenses: Salaries and benefits 854,065 279,413 1,133,478 - Maintenance and operations 474,448 10,004,571 10,479,019 586,109 Contractual services 233,917 426,011 659,928 - Depreciation expense 624,315 677,587 1,301,902 1,781,562 Total Operating Expenses 2,186,745 11,387,582 13,574,327 2,367,671 Operating Income(Loss) (1,527,454) 152,601 (1,374,853) (2,356,865) Nonoperating Revenues(Expenses): Admission tax 6,594 - 6,594 - Interest revenue (380) 47,025 46,645 122,167 Gain (loss)on disposal of capital assets - - - (17,437) Total Nonoperating Revenues(Expenses) 6,214 47,025 53,239 104,730 Income(Loss)Before Transfers (1,521,240) 199,626 (1,321,614) (2,252,135) Transfers in 898,770 - 898,770 - Transfers out - (942,400) (942,400) (24,731) Changes in Net Assets (622,470) (742,774) (1,365,244) (2,276,866) Net Assets: Beginning of Year 15,788,416 17,462,897 33,251,313 16,903,510 End of Fiscal Year $ 15,165,946 $ 16,720,123 $ 31,886,069 $ 14,626,644 See Notes to Financial Statements 30 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2011 Business-Type Activities -Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Total Service Funds Cash Flows from Operating Activities: Cash received from customers and users $ 658,885 $ 11,763,109 $ 12,421,994 $ 10,806 Cash paid to suppliers for goods and services (716,893) (10,528,131) (11,245,024) (779,058) Cash paid to employees for services (868,679) (278,337) (1,147,016)Net Cash Provided(Used) by Operating Activities (926,687) 956,641 29,954 (768,252) Cash Flows from Non-Capital Financing Activities: Cash transfers in 898,770 - 898,770 - Cash transfers out - (942,400) (942,400) (24,731) Admission tax received 6,594 - 6,594 Net Cash Provided(Used) by Non-Capital Financing Activities 905,364 (942,400) (37,036) (24,731) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets - (4,998) (4,998) (1,136,917) Net Cash Provided(Used) by Capital and Related Financing Activities - (4,998) (4,998) (1,136,917) Cash Flows from Investing Activities: Interest received (379) 47,665 47,286 128,817 Net Cash Provided(Used) by Investing Activities (379) 47,665 47,286 128,817 Net Increase(Decrease) in Cash and Cash Equivalents (21,702) 56,908 35,206 (1,801,083) Cash and Cash Equivalents at Beginning of Year 29,110 2,884,902 2,914,012 12,291,571 Cash and Cash Equivalents at End of Year $ 7,408 $ 2,941,810 $ 2,949,218 $ 10,490,488 Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (1,527,454) $ 152,601 $ (1,374,853) $ (2,356,865) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 624,315 677,587 1,301,902 1,781,562 (Increase)decrease in accounts receivable (406) 219,653 219,247 - (Increase)decrease in notes and loans receivable - 3,273 3,273 - Increase(decrease)in accounts payable (8,528) (109,632) (118,160) (192,949) Increase(decrease)in accrued liabilities (14,614) 1,076 (13,538) - Increase(decrease)in deposits payable - 12,083 12,083 - Total Adjustments 600,767 804,040 1,404,807 1,588,613 Net Cash Provided (Used) by Operating Activities $ (926,687) $ 956,641 $ 29,954 $ (768,252) Non-Cash Investing,Capital, and Financing Activities: During fiscal year 2010-2011,there was no noncash investing, capital or financing activities. See Notes to Financial Statements 31 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2011 Agency Funds Assets: Cash and investments $ 24,972,063 Receivables: Accounts 1,500 Taxes 94,984 Interest 8,197 Restricted assets: Cash and investments with fiscal agents 12,455,050 Total Assets $ 37,531,794 Liabilities: Accounts payable $ 52,387 Accrued liabilities 22,015 Deposits payable 7,498,364 Payable to trustee 29,899,036 Due to external parties/other agencies 59,992 Total Liabilities $ 37,531,794 See Notes to Financial Statements 32 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2011 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and Summary of Significant Accounting Policies a. Description of Entity The City of Rancho Cucamonga was incorporated on November 30, 1977, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected five-member board. As required by accounting principles generally accepted in the United States of America, these financial statements present the City of Rancho Cucamonga (the City) and its component units, entities for which the City is considered financially accountable. The inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga is based on the provisions of GASB Statement No. 14. The blended component units discussed below, although legally separate entities, are in substance part of the government operation and so data from these component units has been combined herein. The following criteria were used in the determination of the blended component units: 1. The members of the City Council also act as the governing body of the Rancho Cucamonga Redevelopment Agency (the Agency), the Rancho Cucamonga Public Improvement Corporation (the Improvement Corporation), the Rancho Cucamonga Fire Protection District (the Fire District), the Rancho Cucamonga Library (the Library) and the Rancho Cucamonga Public Financing Authority (the Financing Authority). 2. The Agency, the Improvement Corporation, the Fire District, the Library and the Public Financing Authority are managed by employees of the City. A portion of the City's personnel costs is allocated to these component units each year. 3. The City, the Agency, the Improvement Corporation, the District, the Library and the Financing Authority are financially interdependent. They provide financial benefit/burden to the City. Blended Component Units The Rancho Cucamonga Redevelopment Agency was established on May 20, 1981, pursuant to the State of California Health and Safety Code, Section 33000. Its purpose is to prepare and carry out plans for the improvement, rehabilitation and development of blighted areas within the territorial limits of the City of Rancho Cucamonga. Separate financial statements may be obtained from the Agency. The Rancho Cucamonga Public Improvement Corporation was incorporated on November 14, 1988, under the Non-Profit Public Benefit Corporation Law of the State of California. The Corporation was established for charitable purposes including rendering financial assistance to the City by financing, acquiring, constructing, improving and leasing public improvements for the benefit of residents of the City and the surrounding area. Separate financial statements are not available for the Corporation. 33 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The Rancho Cucamonga Fire Protection District (formerly, Foothill Fire Protection District) was a special district formed by the County of San Bernardino for the purpose of fire suppression within its boundaries. Effective July 1, 1989, operations of this district were taken over by the City of Rancho Cucamonga. The district still operates as a separate special district; however, now it is under the control of the City of Rancho Cucamonga instead of the County of San Bernardino. Separate financial statements are available for the District. The Rancho Cucamonga Library was part of the San Bernardino County Library System in which the City of Rancho Cucamonga participated. Effective July 1, 1994, and pursuant to California Code Section 19104, the City withdrew from the County Library System. As of this date, the library operates as a separate entity under the control of the City. Separate financial statements are not available for the Library. The Rancho Cucamonga Public Financing Authority was established on April 21, 1999, pursuant to Article I (commencing with Section 6500) of Chapter 5 of Division 7 of Title I of the California Government Code. Its purpose is to facilitate the financing and the refinancing of construction, expansion, upgrading and improvement of the public capital facilities necessary to support the rehabilitation and construction of residential and economic development within the City. Separate financial statements are not available for the Public Financing Authority. b. Government-Wide and Fund Financial Statements The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment is offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include: 1) charges to customers or applicants who purchase, use or directly benefit from goods, services or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. c. Measurement Focus, Basis of Accounting and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. 34 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. The City's fiduciary fund financial statements only report agency funds. Agency funds are used to account for situations where the government's role is purely custodial. All assets reported in an agency fund are offset by a liability to the party on whose behalf they are held. Agency funds have no measurement focus. Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when the government receives cash. The City reports the following major governmental funds: • The General Fund is the general operating fund of the City. All general tax receipts and fee revenue not allocated by law, Council policy or contractual agreement to other funds are accounted for in the General Fund. General Fund expenditures include operations traditionally associated with activities, which are not required to be accounted for or paid by another fund. • The Fire District Fund accounts for the revenue and disbursement of funds received by the Rancho Cucamonga Fire Protection District in the course of that agency's fire protection services. • The Rancho Cucamonga Redevelopment Agency Capital Project Fund accounts for the acquisition and construction of major facilities within the Rancho Cucamonga Redevelopment Project Area. • The Rancho Cucamonga Redevelopment Agency Debt Service Fund accounts for the accumulation of resources for the payment of interest and principal on long-term debt of the Agency. The City reports the following major proprietary funds: • The Sports Complex Fund accounts for personnel and operating costs directly associated with the operation of the baseball facility, which is the home of the Rancho Cucamonga Quakes. 35 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain major commercial / industrial developments within the City. Additionally, the City reports the following fund types: • Internal service funds account for the financial transactions related to repair, replacement and maintenance of City-owned vehicles and equipment and the City's general information systems and telecommunications hardware and software. • Fiduciary funds account for assets held by the City in a purely custodial capacity. The fiduciary fund type the City maintains is an agency fund. The City's agency funds account for deposits held by the City in its fiduciary capacity and assessments received for various purposes which are restricted for payment of principal, interest and penalties on special obligation bonds. Private-sector standards of accounting and financial reporting issued prior to December 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance. As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are charges between the government's proprietary funds functions and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the Internal Service Funds are charges to customers for sales and services. Operating expenses for Enterprises Funds and Internal Service Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed. 36 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) d. Assets, Liabilities and Net Assets or Equity Cash and Investments All cash and investments, except those that are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are also considered cash equivalents and are shown as restricted assets for financial statement presentation purposes. Investments for the City, as well as for its component units, are reported at fair value. The City's policy is generally to hold investments until maturity. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." 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. 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. 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, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. The City defines capital assets as assets with an initial, individual cost of more than $5,000 (amount not rounded) and an estimated useful life in excess of one year. Such assets are recorded at historical cost when purchased or constructed. Donated capital assets are recorded at estimated fair market value at the date of donation. 37 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The costs of normal maintenance and repairs that do not add to the value of the assets or materially extend assets lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, equipment, and infrastructure of the primary government, as well as its component units, are depreciated using the straight-line method over the following estimated useful lives: Assets Years Building improvements 10-50 Improvements other than buildings 10-40 Computer equipment and software 3-15 Equipment and vehicles 3-20 Furniture and fixtures 3-20 Infrastructure 10-75 Accrued Employee Benefits The City's policy permits employees to accumulate earned but unused vacation and sick pay benefits. The total amount of liability for unused vacation and sick pay benefits is accrued when incurred in the government-wide financial statements. The City utilizes the General Fund and the Fire District Special Revenue Fund in the governmental fund financial statements to account for the short-term portion of its liability. The short-term portion is the unused reimbursable leave still outstanding following an employee's resignation or retirement. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Fire District employees cannot accrue more than one and one-half times their regular annual entitlement. Sick leave is payable when an employee is unable to work because of illness. For City employees, those who terminate their employment after five years of continuous service and have at least 50% of five years sick leave accrued on the books upon termination may be paid for 120 hours of the accrued leave. 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) JUNE 30, 2011 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 Fund balance is essentially the difference between the assets and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent. • Non-spendable fund balance (inherently non-spendable) • Restricted fund balance (externally enforceable limitations on use) • Committed fund balance (self-imposed limitations on use) •Assigned fund balance (limitation resulting from intended use) • Unassigned fund balance (residual net resources) The City Council, as the City's highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints imposed by formal actions taken, such as an ordinance or resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assigned fund balance. The City Council has given the authority to assign amounts to be used for specific purposes to the City Manager and/or Finance Director for the purpose of reporting these amounts in the annual financial statements. 39 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) The City consider restricted fund balance to have been spent first when an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available. Similarly, when an expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balance could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts. 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. 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. 40 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 compensated absences have not been included in the governmental fund activity." The detail of the $422,602,093 long-term debt difference is as follows: Long-term debt: Tax allocation bonds payable $ 395,920,000 Unamortized bond premium 4,429,672 Loans payable 19,238,812 Capital leases payable 9,997 Claims and judgments payable 2,841,832 Payment deferral 161,780 Net adjustment to reduce fund balance of total governmental funds to arrive at net assets of governmental activities $ 422,602,093 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 $9,719,194 difference are as follows: Capital outlay $ 25,875,528 Depreciation expense (15,429,637) Loss from disposition of capital assets (726,697) Net adjustment to increase net changes in fund balances of total governmental funds to arrive at changes in net assets of governmental activities $ 9,719,194 41 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Another element of that reconciliation states that"the issuance of long-term debt (e.g. bonds, leases and loans) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds." The details of this $9,332,272 difference are as follows: Issuance of long-term debt: Loans payable $ (665,302) Payment deferral (162,501) Principal repayments: Tax allocation bonds 9,070,000 Loans payable 1,431,690 Lease payable 19,290 Payment deferral 17,238 Amortization of bond premium and cost of issuance 204,634 Amortization of cost of issuance (250,020) Net changes in claims and judgments liability (332,757) Net adjustment to increase net changes in fund balance of total governmental funds to arrive at changes in net assets of governmental activities. $ 9,332,272 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, also approves supplemental appropriations. There were several supplemental appropriations required during the year. A detailed mid-year review was conducted at which time a revised budget was adopted. There were no significant non-budgeted financial activities during the year. The City Council may transfer funds between funds or activities set forth in the budget. The City Manager may transfer funds between line items within an appropriation as set forth in the budget and may transfer appropriations between activities within any fund. The level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is established at the department level within the General Fund and at the function level for Special Revenue, Capital Project Funds and Debt Service Funds. Basis of Budgeting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP. 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 2: Stewardship, Compliance and Accountability(Continued) For the fiscal year 2010-2011, the following funds had no adopted annual budgets: • SB 140 • Department of Transportation Grant—ARRA • Drive, Drink, Lose Grant • Henderson/Wardman Drainage • Federal Grant Fund — Drier • OTS 2005 Seatbelt Grant These funds had no adopted budget due to the timing of the usage of these grants and capital project funds. Money will be budgeted as needed based on specific projects. b. Encumbrances Encumbrances are estimations of costs related to unperformed contracts for goods and services. 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. c. Deficit Fund Balances or Net Assets The following funds have a deficit at June 30, 2011: Special Revenue Funds: California Literacy Program $ (6,246) Energy Efficient& Conservation Block Grant (28,859) Senior Outreach Grant (1,195) Safe Routes to School Program (321) COPS Secure our School Grant (9,050) Department of Homeland Security Grant (2,454) OTS 2005 State Seatbelt Grant (5,952) Homeland Security Grant 2005 (74,941) Capital Projects Funds: Assessment District 86-2 (41,128) C F D 2001-01 (2,071,532) CFD 2003-01 Project Fund (1,244,338) Public Library Bond Act-2000 (772,609) The City expects to eliminate these deficits with anticipated future revenues from grants, deferred payments and reimbursements. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2011, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 544,565,573 Business-type activities 2,949,218 Fiduciary funds 37,427,113 Total Cash and Investments $ 584,941,904 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, 2011, the carrying amount of the City's deposits was $11,667,988 and the bank balance was $15,924,631. The $4,256,643 difference represents outstanding checks and other reconciling items. The California Government Code requires California banks and savings and loan associations to secure a City's deposits by pledging government securities with a value of 110% of a City's deposits. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of a City's total deposits. The City Treasurer may waive the collateral requirement for deposits which are fully insured up to $250,000 by the FDIC. The collateral for deposits in federal and state chartered banks is held in safekeeping by an authorized Agent of Depository recognized by the State of California Department of Banking. The collateral for deposits with savings and loan associations is generally held in safekeeping by the Federal Home Loan Bank in San Francisco, California as an Agent of Depository. These securities are physically held in an undivided pool for all California public agency depositors. Under Government Code Section 53655, the placement of securities by a bank or savings and loan association with an "Agent of Depository" has the effect of perfecting the security interest in the name of the local governmental agency. Accordingly, all collateral held by California Agents of Depository are considered to be held for, and in the name of, the local governmental agency. Investments Under provision of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized: • 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 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 3: Cash and Investments (Continued) Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. Credit Risk The City's investment policy limits investments in medium-term notes (MTN's) in short- term rating of at least 'A' or 'A1/P1' and a long-term rating of 'A' is required. As of June 30, 2011, 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, 2011. All securities were investment grade and were legal under State and City law. As of June 30, 2011, the City's investments in external investment pools and money market mutual funds are unrated. On August 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit rating on the United States of America to AA+ from AAA. As a result, on August 8, 2011, Standard & Poor's Ratings Services lowered its issuer credit ratings and related issue ratings on various Federal Home Loan Bank, Federal Farm Credit Bank, Fannie Mae and Freddie Mac to AA+ from AAA. The City also invests in LAIF which invests in various underlying securities, including the federal agency securities listed above. While LAIF is not rated, the federal agency securities are, and these have been affected by this rating change as well. 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. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 3: Cash and Investments (Continued) As of June 30, 2011, 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, 2011, in accordance with GASB Statement No. 40, if the City has invested more than 5% of its total investments in any one issuer then it is exposed to credit risk. The following investments are considered exposed to credit risk: Federal Farm Credit Bank 17% Federal Home Loan Bank 14% Federal Home Loan Mortgage Corporation 18% Federal National Mortgage Association 16% Investments guaranteed by the U.S. government and investments in mutual funds and external investment pools are excluded from this. Interest Rate Risk The City's investment policy limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The City's investment policy establishes a maximum maturity of 180 days for Banker's Acceptances, 270 days for Commercial Papers, one year for Repurchase Agreements and five years for all other individual investments. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk. As of June 30, 2011, the City had the following investments and original maturities: Investment Maturities (in Years) 180 days or 180 days to 270 days to 3 less 270 days years 3 to 5years Fair Value Investments: Local Agency Investment Fund $ 95,329,181 $ $ - $ $ 95,329,181 US Treasury 10,043,360 - 5,065,235 - 15,108,595 Federal Governmental Agencies - - - - - Federal Farm Credit Bank 1,010,009 4,068,404 37,824,208 48,284,281 91,186,902 Federal Home Loan Bank 2,036,840 10,049,200 39,395,454 47,819,869 99,301,363 Federal Home Loan Mortgage Corp. - - 18,027,785 78,385,113 96,412,898 Federal National Mortgage Assoc. - 8,161,184 15,073,514 71,878,530 95,113,228 Certificates of Deposits 1,603,876 - 2,200,000 - 3,803,876 Municipal Bonds - 11,499,551 5,185,500 16,685,051 Government Managed Rate Accounts - - - - Commercial Paper - 1,507,805 - 1,507,805 Money Market Mutual Funds 22,981,930 - - - 22,981,930 Investments with Fiscal Agents: Money Market Mutual Funds 35,843,087 - - - 35,843,087 $ 168,848,283 $ 35,286,144 $ 122,771,696 $ 246,367,793 $ 573,273,916 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 4: Notes and Loans Receivables Notes and loans receivables consist of the following at June 30, 2011: 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, 2011, the loan was paid off. 2. In January 1997, the Agency entered into an agreement to loan Villa Pacifica Associates, a California Limited Partnership, up to $3,090,000 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, 2011, the outstanding balance amounts to $3,965,110, including accrued interest of$875,110. Accrued interest is offset by deferred revenue. 3. On September 1, 2005, the Agency entered into a loan agreement with Northtown Housing Development Corporation for the purchase of undeveloped real property and the development of an apartment complex (San Sevaine)which will increase the supply of affordable housing to low and moderate income households for a period of ninety-nine (99) years. This loan is a line of credit not-to-exceed $40,700,000 with simple interest accruing at 1% per annum from the date of disbursement for a term of 55 years (2060), as modified on May 6, 2009, with Amendment #2. As of June 30, 2011, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $1,044,384 for a total of $41,502,042. Accrued interest is offset by deferred revenue. 4. On July 21, 2003, the 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, 2011, no payments have been required, with the outstanding balance remaining at$13,000,000. 5. On April 19, 2006, the Agency entered into a loan agreement with LINC-Pepperwood Housing Investors, LP to provide financial assistance from the Low and Moderate Housing Set-aside Fund to purchase and rehabilitate the Pepperwood Apartment Homes, which will increase the supply of affordable housing to low and moderate income households, for not less than ninety-nine (99) years. The loan is in the form of a line of credit not-to-exceed $21,638,113, which includes the rollover of the BLT Partnership No. 1 loan of$2,350. 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 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 4: Notes and Loans Receivables (Continued) Developer shall pay to the Agency 50% of the Residual Receipts from the preceding year. As of June 30, 2011, advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to $2,060,473 for a total balance of $23,698,586. Accrued interest is offset by deferred revenue. 6. On September 1, 2005, the Agency entered into a loan agreement with HB Housing Partners, L.P. to provide financial assistance from the Low and Moderate Housing Set-aside Fund to purchase and rehabilitate the Woodhaven Manor Apartments, which will increase the supply of affordable housing to low and moderate income households for not less than ninety-nine (99) years. The loan is in the form of a line of credit not-to-exceed $9,000,000. Simple interest accrues on the advances as follows: 1) 3% per annum from the date of disbursement through and including the date immediately prior to September 21, 2022; and 2) 2% per annum from September 21, 2002 through September 21, 2060. In addition, to the extent there are Residual Receipts, the Developer shall pay to the Agency either 33% or 50% of the Residual Receipts from the preceding year. As of June 30, 2011, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $1,378,350 for a total of $10,378,350. Accrued interest is offset by deferred revenue. 7. On March 9, 2006, the Agency entered into a loan agreement with The Southern California Housing Development Corporation for the acquisition, construction and operation of affordable housing apartments, referred to as the Rancho Verde Expansion project, 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, 2011, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $281,423 for a total of$6,781,333. Accrued interest is offset by deferred revenue. 8. On December 1, 2001, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $4,000,000 with Malvern Housing Partners, L.P. 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 advances 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, 2011, the advances paid against this line of credit amounted to $565,788 and accrued interest amounts to $28,078, for a total of$593,866. Accrued interest is offset by deferred revenue. 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 4: Notes and Loans Receivables (Continued) 9. On September 1, 2008, the Agency entered into a residual receipts promissory note loan agreement in the form of a line of credit not-to-exceed $27,565,000 with Rancho Workforce Housing, L.P. for the acquisition, construction and development of a 166-unit rental housing development, including 131 residential units for low and moderate income residents. This loan bears simple interest of 2.386% compounded annually from the date of disbursement, with a term commencing on the date of this agreement and continuing for fifty-five (55) years from the date of the recordation of the Certificate of Completion. Commencing after Borrower's fiscal year first ending after the completion of construction of the development, Borrower shall make repayments to the Agency equal to 50% of the Residual Receipts. As of June 30, 2011, the advances paid against this line of credit amounted to $25,868,857, and accrued interest amounts to $1,189,509, for a total of$27,058,366. 10. On September 26, 1994, the Agency entered into a Disposition and Development Agreement (DDA) and loan agreement (as modified on March 22, 1996) for $5,929,181 with North Town Housing Partners for the acquisition of the 88-unit multifamily rental Del Norte housing project for low and moderate income households. The term of the loan is 40 years, with simple interest accruing at 3% per annum on the outstanding principal balance. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. As of June 30, 2011, the outstanding balance amounts to $8,775,189, including accrued interest of $2,846,007. Accrued interest is offset by deferred revenue. 11. On June 6, 2001, the Agency entered into a loan agreement (as updated on December 1, 2002) for $4,700,000 with Northtown Housing Development Corp. for the development of the Olen Jones Senior Apartments. The term of the loan is 55 years, with zero interest accruing for the first 15 years, then accruing simple interest at 3% per annum for the remainder of the term. Payments of principal and interest on the loan are due and payable only to the extent that net annual cash flow from the development is available. As of June 30, 2011, the outstanding balance amounts to $4,529,818. Total loans receivables for governmental activities at June 30, 2011, including accrued interest of$9,703,334, amounted to $140,282,660. 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 5: Capital Assets Capital asset activity for the year ended June 30, 2011, was as follows: Adjusted Beginning Beginning Ending Balance Adjustments* Balance Increases Decreases Transfers Balance Governmental Activities: Capital assets,not being depreciated: Land $ 83,403,323 $ - $ 83,403,323 $ 242,356 $ $ $ 83,645,679 Right of way 223,219,486 8,078,855 231,298,341 633,272 231,931,613 Construction-in-progress 33,694,645 - 33,694,645 21,834,748 (22,888,002) 32,641,391 Total Capital Assets, Not Being Depreciated 340,317,454 8,078,855 348,396,309 22,710,376 (22,888,002) 348,218,683 Capital assets,being depreciated: Building Improvements 142,574,641 - 142,574,641 865,318 118,282 143,558,241 Improvement other than buildings 12,432,336 12,432,336 48,490 83,755 12,564,581 Equipment and vehicles 33,722,978 33,722,978 2,562,330 1,043,254 - 35,242,054 Furniture and fixtures 2,987,471 2,987,471 23,660 - - 3,011,131 Infrastructure 412,136,169 (8,078,855) 404,057,314 689,121 1,497,899 22,685,965 425,934,501 Intangible 1,145,958 1,145,958 280,462 53,831 - 1,372,589 Total Capital Assets, Being Depreciated 604,999,553 (8,078,855) 596,920,698 4,469,381 2,594,984 22,888,002 621,683,097 Less accumulated depreciation: Building improvements 25,533,185 25,533,185 3,396,045 - - 28,929,230 Improvement other than buildings 6,773,042 6,773,042 627,353 - 7,400,395 Equipment and vehicles 23,454,869 23,454,869 3,543,873 905,895 26,092,847 Furniture and fixtures 1,615,155 1,615,155 483,027 - 2,098,182 Infrastructure 165,838,843 165,838,843 9,058,856 770,690 174,127,009 Intangible 534,558 534,558 102,045 6,953 629,650 Total Accumulated Depreciation 223,749,652 223,749,652 17,211,199 1,683,538 239,277,313 Total Capital Assets, Being Depreciated,Net 381,249,901 (8,078,855) 373,171,046 (12,741,818) 911,446 22,888,002 382,405,784 Governmental Activities Capital Assets,Net $ 721,567,355 $ - $ 721,567,355 $ 9,968,558 $ 911,446 $ - $ 730,624,467 Adjustment was made to reclassify right of way. 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 1,681,258 Public safety- police 490,435 Public safety-fire protection 716,826 Engineering and public works 9,958,906 Community development 2,071,207 Community services 511,005 Vehicle Replacement Fund 1,382,699 Computer Equip./Technology Replacement Fund 398,863 Total Governmental Activities $ 17,211,199 Beginning Ending Balance Increases Decreases Balance Business-Type Activities: Capital assets,not being depreciated: Land $ 5,451,015 $ $ $ 5,451,015 Total Capital Assets, Not Being Depreciated 5,451,015 5,451,015 Capital assets,being depreciated: Building improvements 17,203,473 17,203,473 Improvement other than buildings 3,797,414 3,797,414 Equipment and vehicles 419,113 36,299 382,814 Furniture and fixtures 82,374 - 82,374 Infrastructure 16,742,063 4,997 16,747,060 Intangible 25,856 - 25,856 Total Capital Assets, Being Depreciated 38,270,293 4,997 36,299 38,238,991 Less accumulated depreciation: Building improvements 7,323,842 430,072 - 7,753,914 Improvement other than buildings 3,306,915 189,871 - 3,496,786 Equipment and vehicles 380,778 8,236 36,299 352,715 Furniture and fixtures 36,755 1,356 - 38,111 Infrastructure 2,928,036 669,781 3,597,817 Intangible 12,447 2,586 15,033 Total Accumulated Depreciation 13,988,773 1,301,902 36,299 15,254,376 Total Capital Assets, Being Depreciated,Net 24,281,520 (1,296,905) - 22,984,615 Business-Type Activities Capital Assets, Net $ 29,732,535 $ (1,296,905) $ $ 28,435,630 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Business-Type Activities: Sports Complex $ 624,315 Municipal Utility 677,587 Total Business-Type Activites $ 1,301,902 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2011, was as follows: Due To/From Other Funds Due to Other Funds Fire District Redevelopment Nonmajor Special Agency Governmental Funds Revenue Fund Capital Projects Funds Total Due From Other Funds: General $ 318,428 $ 68,060 $ 1,508,772 $ 1,895,260 Redevelopment Agency- Capital Projects - - 230,051 230,051 Nonmajor Funds - 244,994 - 244,994 Total $ 318,428 $ 313,054 $ 1,738,823 $ 2,370,305 Due to/from other funds were made to cover negative cash balance at June 30, 2011. Advances To/From Other Funds Advances from Other Funds Redevelopment Nonmajor Agency Governmental Funds Capital Projects Funds Total Advances to Other Funds: General $ 56,182,527 $ 300,000 $ 56,482,527 Redevelopment Agency- Capital Projects - 3,953,624 3,953,624 Total $ 56,182,527 $ 4,253,624 $ 60,436,151 During the current and previous fiscal years, the City of Rancho Cucamonga has made loans to the Rancho Cucamonga Redevelopment Agency. These loans which amount to $56,182,527 as of June 30, 2011, 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. As of June 30, 2011, accrued unpaid interest on these loans was $46,661,300. 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 6: Interfund Receivable, Payable and Transfers (Continued) 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). 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, 2011, the advance was $3,953,624. Interfund Transfers Transfers Out: Redevelopment Redevelopment Internal General Agency Agency Municipal Service Nonmajor Funds Fund Capital Projects Debt Service Utility Funds Funds Total Transfers In: General $ - $ $ - $ 942,400 $ $ $ 942,400 Fire District 172,840 1,932,250 - 2,105,090 Redevelopment Agency- Capital Projects - 7,535,810 - 7,535,810 Sports Complex 898,770 - - 898,770 Nonmajor Funds 23,377 77,580 - 24,731 58,060 183,748 Total $ 1,094,987 $ 77,580 $ 9,468,060 $ 942,400 $ 24,731 $ 58,060 $ 11,665,818 The General Fund transferred $898,770 to the Sports Complex to cover the budgeted amount and $172,840 to the Fire District to fund the emergency preparedness program. The Rancho Cucamonga Redevelopment Agency Debt Service Fund transferred $7,535,810 to the Rancho Cucamonga Redevelopment Agency Capital Project Fund and $1,932,250 to the Fire District to cover the cost of operations and capital projects. The Municipal Utility transferred $942,400 to the General Fund to cover the cost of operations. 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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, 2011: Balance Outstanding Due Within July 1,2010 Additions Repayments June 30,2011 One Year Bonds: Tax Allocation Refunding Bonds-1999 Issue $ 35,980,000 $ $ 2,530,000 $ 33,450,000 $ 2,645,000 Tax Allocation Bonds 20011ssue 71,785,000 10,000 71,775,000 15,000 Tax Allocation Bonds 20041ssue 148,680,000 3,870,000 144,810,000 4,070,000 Tax Allocation Bonds 2007 Issue A&B 148,545,000 2,660,000 145,885,000 2,790,000 Total Bonds 404,990,000 9,070,000 395,920,000 9,520,000 Developer Loans: Federal Bureau of Reclamation 546,842 546,842 - - Price Club/Costco 7,545,292 665,302 523,045 7,687,549 - Bank of New York 11,913,066 - 361,803 11,551,263 394,268 Total Developer Loans 20,005,200 665,302 1,431,690 19,238,812 394,268 Capital Lease 29,287 - 19,290 9,997 9,997 Cucamonga Valley Water District-Payment Deferral 16,517 162,501 17,238 161,780 161,780 Claims and judgments payable 2,509,075 1,209,591 876,834 2,841,832 997,000 Accrued employee benefits 7,650,501 4,568,222 4,612,303 7,606,420 4,587,000 Total $ 435,200,580 $ 6,605,616 $ 16,027,355 425,778,841 $ 15,670,045 Unamortized bond premium 4,429,673 $ 430,208,514 A description of individual components of long-term debt outstanding as of June 30, 2011, is as follows: Tax Allocation Bonds 1. Rancho Cucamonga Redevelopment Agency, Rancho Development Project, 1999 Tax Allocation Refunding Bonds, $54,945,000. These bonds are dated August 30, 1999, and were issued in order to finance a portion of the Agency's Rancho Development Project, to currently refund the outstanding principal balance of $47,715,000 of the Rancho Development Project 1990 Tax Allocation Bonds and to fund redevelopment activities. Interest is payable semi-annually on March 1 and September 1, of each year commencing March 1, 2000. The bonds mature in annual installments ranging from $1,880,000 to $4,165,000 starting September 1, 2000 to September 1, 2020, and bear interest ranging from 4.25% to 5.25%. 54 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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, 2011, 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 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, 2011, amounted to $33,450,000. The following schedule illustrates the debt service requirements to maturity for the 1999 Tax Allocation Refunding Bonds as of June 30, 2011: 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 7: Long-Term Debt Obligations (Continued) Principal Interest 2011-2012 $ 2,645,000 $ 1,664,540 2012-2013 2,785,000 1,528,790 2013-2014 2,915,000 1,386,290 2014-2015 3,065,000 1,235,258 2015-2016 3,210,000 1,072,838 2016-2020 18,830,000 2,573,550 Total $ 33,450,000 $ 9,461,266 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 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. 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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, 2011, amounted to $71,775,000. The following schedule illustrates the debt service requirements to maturity for the 2001 Tax Allocation Bonds as of June 30, 2011: Principal Interest 2011-2012 $ 15,000 $ 3,719,369 2012-2013 10,000 3,718,744 2013-2014 10,000 3,718,244 2014-2015 15,000 3,717,619 2015-2016 15,000 3,716,869 2016-2021 85,000 18,572,594 2021-2026 19,285,000 17,321,128 2026-2030 52,340,000 6,974,100 Total $ 71,775,000 $ 61,458,667 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. 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 7: Long-Term Debt Obligations (Continued) Pledged Tax Revenues also do not include that portion of tax revenues derived from the Project Area which are required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. The Agency has entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with a.) the Chino Basin Municipal Water District, b.) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c.) the Cucamonga County Water District, d.)the Foothill Fire Protection District, and e.) various school districts located within the project area. Under the terms of these agreements, the Agency has agreed that certain tax revenues attributable to those areas and which are allocated to the Agency pursuant to Section 33670 (b), shall be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments are to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also do not include interest income on various funds and accounts created by the series resolutions. Any such investment income is available to the Agency to meet debt service payments on the bonds but is not specifically pledged therefore. The bonds are further secured by a financial guarantee insurance policy in the event of nonpayment of principal and/or interest. The balance at June 30, 2011, amounted to $144,810,000, plus unamortized bond premium of$3,640,683. The following schedule illustrates the debt service requirements to maturity for the 2004 Tax Allocation Bonds as of June 30, 2011: Principal Interest 2011-2012 $ 4,070,000 $ 6,257,090 2012-2013 4,270,000 6,091,290 2013-2014 4,405,000 5,917,115 2014-2015 4,620,000 5,691,490 2015-2016 4,860,000 5,454,490 2016-2021 27,770,000 23,775,128 2021-2026 38,825,000 15,906,478 2026-2031 21,275,000 10,278,225 2031-2036 34,715,000 1,579,388 Total $ 144,810,000 $ 80,950,694 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 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 7: Long-Term Debt Obligations (Continued) affordability restriction on 558 units within four apartment projects located in the City of Rancho Cucamonga pursuant to an Extended Affordability Agreement, and (d) finance other low and moderate income housing projects in or of benefit to the Project Area. The Series A issue consists of$29,950,000 in Serial bonds with maturities beginning September 1, 2008 through September 1, 2026, bearing interest ranging from 3.25% through 5.0%; and $43,355,000 in Term bonds due September 1, 2034, bearing interest at 5%. The Series B issue consists of $19,675,000 Term bonds due September 1, 2017, bearing interest at 5.529%; and $62,640,000 Term bonds due September 1, 2031, bearing interest at 6.262%. Interest on both Series A and B bonds is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2008. The Series A Bonds maturing on or before September 1, 2017, are not subject to call and redemption prior to maturity. The Series A Bonds maturing on or after September 1, 2018, will be subject to call and redemption prior to maturity at the option of the Agency, on or after September 1, 2017. The Taxable Series B Bonds are subject to optional redemption, on any date prior to their maturity. The 2007 bonds are secured and payable from Tax Revenues on a subordinate basis with respect to a Loan Agreement dated as of December 15, 1997, between the Agency, Northtown Housing Development Corporation and Pacific Life Insurance Company (Loan Payable-Bank of New York) —the Senior Loan. The Indenture does not permit additional senior obligations. The Agency is permitted under the Indenture to incur additional obligations— Parity Bonds—secured by a pledge of Tax Revenues on a parity basis with the pledge of Tax Revenues to the 2007 Bonds. Tax Revenues which secure the 2007 Bonds consist solely of the Housing Set-Aside. The balance at June 30, 2011, amounted to $145,885,000 plus unamortized bond premium of$788,990. Principal Interest 2011-2012 $ 2,790,000 $ 7,865,337 2012-2013 2,925,000 8,043,262 2013-2014 3,070,000 7,578,586 2014-2015 3,230,000 7,727,206 2015-2016 3,390,000 7,253,473 2016-2021 19,845,000 34,188,096 2021-2026 26,130,000 27,398,326 2026-2031 40,955,000 17,967,245 2031-2036 43,550,000 4,288,899 Total $ 145,885,000 $ 122,310,430 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). AS of June 30, 2011, the loan has been paid off. 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 7: Long-Term Debt Obligations (Continued) 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, 2011, amounted to $7,687,548. 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, 2011, amounted to $11,551,263. The following schedule illustrates the debt service requirements to maturity as of June 30, 2011: Principal Interest 2011-2012 $ 394,268 $ 1,005,732 2012-2013 429,644 970,356 2013-2014 468,194 931,806 2014-2015 510,204 889,796 2015-2016 555,984 844,016 2016-2017 605,871 794,129 2017-2021 3,473,639 2,826,361 2022-2026 5,113,459 1,186,541 Total $ 11,551,263 $ 9,448,737 60 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 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, 2011, the outstanding balance on the lease was $9,997. The following schedule illustrates the debt service requirements as of June 30, 2011: For the Year Ending: Total 2012 $ 10,238 Net Minimum Lease Payments 10,238 Less:Amount Representing Interest (241) Present Value of Net Minimum Lease Payments $ 9,997 Cucamonga Valley Water District— Payment Deferral On May 20, 2011, the City entered into an installment agreement with Cucamonga Valley Water District for the deferred payment of increased rates and charges adopted by the District. Specifically, the City's Interruptible Government Rate discount of 10% was eliminated, the Bimonthly Service Charge will be increased incrementally over the next 5 years, and the MWD Surcharge Rate will be applied as a pass-through rate for a 5 year period ending July 1, 2014. Beginning on the Commencement Date of May 1, 2010, until the end of the first year, the City shall only be required to pay 90% of the full amount due and owing for the Water Service Charges imposed during Year One. The remaining balance due of 10% can be accrued up to a maximum amount of $275,000. Beginning on the anniversary date of the Commencement Date and until the end of the second year, the City shall make payments for the entire amount due and owing for the current Water Service Charges imposed during Year Two. In addition on a monthly basis in Year Two, the City shall make an additional payment equal to 1/12 of the Installment Amount accrued at the end of Year One. The unpaid Installment Amount principal will bear interest in the amount of$2,200 which uses an assumed interest rate of .80%. The final payment shall become due and owing no later than April 30, 2012. The deferred amount outstanding as of June 30, 2011 is $161,780. Claims and Judgments Payable The City's liability regarding self insurance is described in Note 12 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. 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 7: Long-Term Debt Obligations (Continued) 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 $670, 213 634 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 $69,583,434 and the debt service obligation on the bonds was $29,192,680. Note 8: Other Special Obligations The following issues of Residential Mortgage Revenue Bonds, Special Assessment District Bonds, and Community Facility District Bonds are not reflected in the Statement of Net Assets because these are special obligations payable solely from and secured by specific revenue sources described in the resolutions and official statements of the respective issues. Neither the faith and credit nor the taxing power of the City, the Redevelopment Agency, the State of California or any political subdivision thereof, is pledged for the payment of these bonds. The outstanding amounts at June 30, 2011, were as follows: Outstanding Amount at June 30, 2011 City of Rancho Cucamonga: Reassessment District 1999-1 $ 505,000 Assessment District 93-1 1,985,000 Community Facilities District No. 93-3 2,795,000 Community Facilities District No. 88-2 1,705,000 Community Facilities District No. 2000-01 1,045,000 Community Facilities District No. 2000-02 5,765,000 Community Facilities District No. 2000-03 9,230,000 Community Facilities District No. 2001-01 Series A 12,460,000 Community Facilities District No. 2001-01 Series B 835,000 Community Facilities District No. 2003-01 Series A 14,450,000 Community Facilities District No. 2003-01 Series B 2,810,000 Community Facilities District No. 2004-01 39,723,950 Community Facilities District No. 2006-01 5,495,000 Community Facilities District No. 2006-02 2,815,000 Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 2,880,457 Total $ 104,499,407 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 IV. OTHER INFORMATION Note 9: Pension Plan Obligations a. City Miscellaneous Plan Plan Description The City of Rancho Cucamonga contributes to the California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS' annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814. Funding Policy Participants are required to contribute 8% of their annual covered salary. The City makes the contributions required of employees on their behalf and for their account. The City is required to contribute at an actuarially determined rate; the current rate as a percentage of annual covered payroll is 10.268%. 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, 2011, the City's annual pension cost of $5,593,491 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2010, 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, 2010 Actuarial Cost Method Entry Age Actuarial Cost Method Amortization Method Level Percent of Payroll Average Remaining Period 23 years as of the Valuation Date Asset Valuation Method 15-Year Smoothed Market Actuarial Assumptions: Investment Rate of Return 7.75% (net of administrative expenses) Projected Salary Increases 3.55% to 14.45% depending on age, service and type of employment Inflation 3.00% Payroll Growth 3.25% Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation component of 3.00% and an annual production growth of 0.25%. 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 9: Pension Plan Obligations (Continued) Initial unfunded liabilities are amortized over a closed period that depends on the Plan's date of entry into CaIPERS. 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 6/30/2009 $ 5,084 100% $ - 6/30/2010 5,115 100% - 6/30/2011 5,593 100% - Schedule of Funding Progress for PERS Miscellaneous Plan of the City of Rancho Cucamonga (Amounts in Thousands) Actuarial Accrued UAAL as Actuarial Actuarial Liability Unfunded a%of Valuation Value of (AAL)Entry AAL Funded Covered Covered Date Assets Age (UAAL) Ratio Payroll Payroll 6/30/2008 $ 95,434 $ 101,840 $ (6,406) 93.7 % $ 27,683 23.1 % 6/30/2009 103,495 120,906 (17,411) 85.6 % 28,689 60.7 % 6/30/2010 112,066 128,533 (16,467) 87.2 % 28,569 57.6 % The information above is the most recent information available. b. Fire District's Miscellaneous and Safety Plan Plan Description The Fire District contributes to the California Public Employees Retirement System (PERS), a cost-sharing multiple-employer defined benefit pension plan. PERS provides retirement, disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS annual financial report may be obtained from their executive office: 400 P Street, Sacramento, CA 95814. Funding Policy Participants are required to contribute 8% (9% for safety employees) of their annual covered salary. The Fire District makes the contributions required of employees on their behalf and for their account. The Fire District is required to contribute at an actuarially determined rate; the current rate as a percentage of annual covered payroll is 12.992% for the non-safety employees and 24.557% for safety employees. The contribution requirements of plan members and the City are established and may be amended by PERS. 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 9: Pension Plan Obligations (Continued) Annual Pension Cost (APC) For the year ended June 30, 2011, the Fire District's annual pension cost for the miscellaneous and safety employees of $3,603,476 was equal to the Fire District's required and actual contributions. The required contribution was determined as part of the June 30, 2009, actuarial valuation using the entry age normal actuarial cost method. Three-Year Trend Information for PERS- Fire District Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APC) Contributed Obligations 6/30/2009 $ 3,591 100% $ - 6/30/2010 3,533 100% - 6/30/2011 3,603 100% - Note 10: PARS Retirement Enhancement Plan Plan Description The City of Rancho Cucamonga sponsors the PARS Retirement Enhancement Plan, a agent multiple-employer defined benefit pension plan. The Plan provides pension benefits to miscellaneous members (Tier 1) and city council members (Tier 2). Benefits are equal to a percentage of highest pay multiplied by years of service, with the percentage varying by retirement age based on a 3% at 60 target offset by CalPERS 2.5% at 55 formula. Sample rates are as follows: Age Tier 1 55 0.000% 56 0.100 57 0.200 58 0.300 59 0.400 60+ 0.500 The City and the Fire District have the right to amend, modify or terminate the plan at any time. Separate audited financial statements are not prepared. Benefits are increased by a 2% annual cost of living adjustment after retirement. There are no employee contributions for either tier. Funding Policy The City's funding policy is to contribute the annual required contribution. The annual required contribution equals the sum of: • normal cost, and • amortization of the unfunded actuarial accrued liability. 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 10: PARS Retirement Enhancement Plan (Continued) Annual Pension Cost(APC) Government Accounting Standards Board Statement No. 27 (Statement 27) requires that the City determine the plan's annual pension cost based on the most recent actuarial valuation. The annual pension cost equals the plan's annual required contribution, adjusted for historical differences between the annual required contribution and amounts contributed. The actuary has determined the City's annual required contribution equal to the sum of (a) normal cost, and (b) amortization of the unfunded actuarial accrued liability. For the year ending June 30, 2011, the City's annual required contribution was $1,454,000. The City actually contributed $10,201,342 to fund the annual required contribution (ARC) and the unfunded actuarial accrued liability. The required contribution was based on the June 30, 2010, actuarial valuation using the entry age normal (level percentage of pay) actuarial cost method. The actuarial assumptions included 6.5% investment return (net of administrative expenses) and a general inflation rate of 3%. The prepaid PARS obligation is being amortized over a 20 years period. Annual required contribution (ARC) $ 1,454,000 Interest in net PARS asset - Adjustment to ARC - Annual PARS cost 1,454,000 Contribution made 10,201,342 Decrease/(Increase) in net PARS asset (8,747,342) Net PARS obligation (asset)June 30, 2010 Net PARS obligation (asset)June 30, 2011 $ (8,747,342) The following table provides 3 years of historical information of the Annual Pension Cost: Annual Pension Net Pension Cost(APC) Percentage of Obligation Year Ending (in Thousands) APC Contributed Asset 6/30/2009 $ 1,483 100% $ - 6/30/2010 1,389 100% - 6/30/2011 10,201 1425% (8,747) Schedule of Funding Progress PARS Retirement Enhancement Plan (Amounts in Thousands) Unfunded Actuarial Actuarial Actuarial Actuarial UAAL as a % Valuation Value of Accrued Accrued Funded Covered of Covered Date Assets Liability Liability Ratio Payroll Payroll 07/01/2006 $ 3,830 $ 10,144 $ 6,314 37.8% $ 20,767 30.4% 07/01/2008 6,652 13,118 6,466 50.7% 27,185 23.8% 07/01/2010 9,052 17,961 8,909 50.4% * 27,663 32.2% Actuarial valuation is performed every other year. *The projected funded ratio as of 07/01/2011 is 100%due to the contributions made during the 2010/11 fiscal year. 66 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 11: Other Post-Employment 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 post-employment benefits (OPEB) through the California Employers' Retiree Benefit Fund (CERBT), an agent multiple- employer defined benefit healthcare plan administered by the California Public Employees' Retirement System (CaIPERS). For Tier 1 employees, the Fire District pays 100% of the medical insurance premium for the participant and their family. For Tier 2 employees, the Fire District contributes a predetermined monthly maximum of $97-$101 for each eligible retiree towards health insurance. These benefits are provided per contract between the Fire District and the employee associations. Separate financial statements for the CERBT may be obtained by writing to CalPERS at Lincoln Plaza North 400 Q Street, Sacramento, CA 95814 or by visiting the CalPERS website at www.calpers.ca.gov. Funding Policy The contribution requirements of plan members and the Fire District are established and may be amended by the Fire District, City Council and/or the employee associations. Currently, contributions are not required from plan members. During fiscal year 2010-2011, premium payments for retiree insurance in the total amount of$734,359 were made to CalPERS for PEMHCA Health Benefits. The following table shows the components of the Fire District's annual OPEB cost for the year, the amount actually contributed to the plan, and the change in the net OPEB obligation (asset): Annual required contribution (ARC) $ 168,000 Interest on net OPEB asset (1,278,193) Adjustment to ARC 1,443,942 Annual OPEB cost 333,749 Contributions made 734,359 Decrease/(Increase) in Net OPEB asset (400,610) Net OPEB obligation (asset)June 30, 2009 (16,492,809) Net OPEB obligation (asset)June 30, 2010 $ (16,893,419) The contribution rate of 1.8% is based on the ARC of $168,000, 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) The City implemented the provision of GASB Statement 45 in fiscal year ended June 30, 2009. Information on the annual OPEB cost, percentage of annual OPEB cost contributed, and net OPEB obligation is available for the fiscal year ended June 30, 2009, and thereafter. 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 11: Other Post-Employment Benefits (Continued) 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 $ 3,382,000 244.7% $ (2,000,000) 6/30/2010 1,292,000 15,803,290 1223.2% (16,492,809) 6/30/2011 333,749 734,359 220.0% (16,893,419) 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. Schedule of Funding Progress Other Post-Employment Benefits (Amounts in Thousands) Unfunded UAAL as a Actuarial Actuarial Acturial Actuarial Percent of Valuation Value of Accrued Accrued Funded Covered Covered Date Assets Liability Liability Ratio Payroll Payroll 6/30/2007 $ - $ 16,515 $ 16,515 0.0% $ 7,769 212.6% 6/30/2009 2,798 17,561 14,763 15.9% 8,021 184.1% 6/30/2011 21,547 22,544 997 95.6% 8,601 11.6% 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, 2011 actuarial valuation, the entry age normal level percentage of pay actuarial cost method was used. The actuarial assumptions include a 6.50% discount 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 9.3%. 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 over a 26-year fixed (closed) period for initial UAAL from June 30, 2012 (fresh start). The number of active and retiree participants is 99 and 51 respectively. 68 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 12: Summary Disclosure of Self-Insurance Contingencies City Disclosure of Self-Insurance Contingencies The City is self-insured for the first $350,000 on each general liability claim and for the first $150,000 on each workers' compensation claim. The insurance coverage in excess of the self-insured amount is provided by the Public Agency Risk Sharing Authority of California (PARSAC) up to a limit of $650,000 and $350,000 for general liability and workers' compensation respectively. Claims expenditures and liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported. The City funds all claims payable, including those incurred but not reported, in the yearly deposit it pays to PARSAC. Effective June 1, 1986, the City became a member of the PARSAC, a public entity risk pool currently operating as a common risk management and insurance program for 36 California cities. The City pays an annual premium to the pool for its excess general liability insurance coverage. The agreement for information of the PARSAC provides that the pool will be self-sustaining through member premiums. The PARSAC will publish its own financial report for the year ended June 30, 2011, 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. 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, 2011, 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. 69 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 12: Summary Disclosure of Self-Insurance Contingencies (Continued) CSAC-EIA publishes its own financial report for the year ended June 30, 2011, 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$2,841,832 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 2009-2010 $ 2,405,819 $ 1,298,443 $ (1,195,187) $ 2,509,075 2010-2011 2,509,075 1,209,591 (876,834) 2,841,832 Note 13: 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, 2011, the Agency made payments totaling $478,791. 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 14: Transactions with the State of California SERAF Shift for fiscal year 2010-2011 On July 23, 2009, the State adopted legislation, requiring a shift of monies during fiscal years 2009-2010 and 2010-2011 to be deposited into the County "Supplemental" Educational Revenue Augmentation Fund (SERAF). These monies were to be distributed to meet the State's Prop 98 obligations to schools. The California Redevelopment Association (CRA) and its member agencies filed a legal action in an attempt to stop these amounts from having to be paid; however, in May 2010 the Sacramento Superior Court upheld the legislation. The payment of the SERAF was due on May 10, 2011 for fiscal year 2010-2011 and was made in the amount of $6,610,857. The legislation allowed this payment to be made from any available monies present in any project area(s). Subsequent legislation was passed which even allowed the funding for this payment to be borrowed from the Low and Moderate Income Housing Fund with appropriate findings from its legislative body. Any amounts borrowed from Low and Moderate Income Housing (including any suspended set-aside amounts) are to be repaid by June 30, 2015. If those amounts are not repaid, by that date, then the set-aside percentage to Low and Moderate Income Housing will increase from 20%to 25%for the remainder of the life of the Agency. To accomplish the payment, the Agency utilized $6,610,857 from its available resources in the Tax Increment Debt Service Fund. In the accompanying financial statements, the amount paid to the County has been reported as a use of current year resources. Note 15: California Redevelopment Agency Uncertainty On July 18, 2011, the California Redevelopment Association ("CRA") and the League of California Cities ("League") filed a petition for writ of mandate with the California Supreme Court, requesting the Court to declare unconstitutional two bills that were passed as part of the 2011-12 State Budget, AB1X 26 and 27. AB1X 26 dissolves redevelopment agencies effective October 1, 2011. AB1X 27, give redevelopment agencies an option to avoid dissolution if it commits to making defined payments for the benefit of the State, school districts and certain special districts. In 2011-12, these payments amount to a state-wide total of$1.7 billion. In 2012-13 and subsequent years, the payments total $400 million, annually. Each city or county's share of these payments is determined based on its proportionate share of state-wide tax increment. CRA and the League contend that AB1X 26 and 27 are unconstitutional because they violate Proposition 22 which was passed by the voters in November 2010. The effect of the legislation is to achieve a possible unconstitutional result, the use of redevelopment agencies' tax increment funds to benefit the State and other units of local government, by way of threatening of the dissolution of redevelopment agencies. Therefore, the CRA and the League have requested that the Court issue a stay, suspending the effectiveness of AB1X 26 and 27 until the Court can rule on its constitutionality. CRA and the League also asked the Court to expedite the briefing and hearing of the case so that a decision can be rendered by the Court before January 15, 2012, when the first payments are due. On August 11th, the California Supreme Court agreed to hear the case and granted a partial stay which was subsequently clarified. 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2011 Note 15: California Redevelopment Agency Uncertainty(Continued) As of the time of the issuance of this report, the outcome of AB1X 26 and 27 upon the Agency is unknown and consequently the status and even future existence of the Agency is uncertain as such. In accordance with AB1X 27, the Agency has passed a resolution of intent to continue and will be required to make a payment to the State in the estimated amount of$26,866,857 by January 15, 2012 to avoid dissolution. 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. 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. CommunitV 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. SIB 140 Fund - Established to account for the revenue and disbursement of State matching funds for the construction of eligible street construction projects. 73 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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. California Literacy Program Fund - The California Literacy Campaign Grant is administered by the State Library of California for the purpose of promoting literacy. Asset Forfeiture Fund - Established to account for the funds received from the Federal and State government for the equitable transfer of forfeited property and cash in which the City directly participates in the law enforcement efforts leading to the seizure and forfeiture of the property. Used Oil Recycling Grant Fund - In 1991, the Legislature passed AB 2076, the California Oil Recovery Enhancement Act. The act requires oil manufacturers to pay $0.04 to the California Integrated Waste Management Board for each quart of lubricating oil sold in the State of California. These grant funds are available to governmental agencies, based on population, for the purpose of establishing and administering used oil collection programs. These funds must be used expressly for oil recycling collection and educational programs. Department of Transportation Grant Fund —ARRA—This fund was established to account for the grant money received through the American Recovery and Reinvestment Act of 2009, for the construction and expansion of City streets and highways which provide additional capacity and safety. 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. 74 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Drainage Facilities Fund - Established to account for fees charged developers for purposes of defraying the actual or estimated costs of constructing planned drainage or sewer facilities that are in the subdivision. CA State Library Fund - This "Family Place" training grant from the California State Library provided funding for two Library staff to attend a one-week training that will enable them to develop special programs at the Biane Library and the Family Resource Center. This grant has no matching requirements. Library Services and Technologies Act Fund - In fiscal year 1994/95, the City began providing library services to the residents of Rancho Cucamonga. In the fall of 1994, the City opened the interim municipal library facility with a 70,000 piece collection consisting of books, audio, video and reference materials. The 22,000 square foot facility doubled the amount of space previously available through the County system. The City's library collection and programs are designed to meet the needs of adults, young adults and children of Rancho Cucamonga. Funding for the library system comes from current taxes that are collected by the County for library services. The City's library system continues to operate from these same tax dollars and does not receive any additional funding from the City's general fund. Litter Reduction Grant Fund - Established to account for a grant from the State Department of Conservation. This grant will fund a program that will emphasize the collection and recycling of beverage containers at large venues, public areas, residential communities or schools. Energy Efficient and Conservation Block Grant (EECBG) Fund — Through the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy issued formula-based grants under the EECBG program. The grant funds received by the City funded the following activities: 1) Civic Center Phase I — Replacement of HVAC Controls; 2) Home Improvement Program Energy Efficiency Revolving Loan; 3) Energy Efficient Appliances, Electrical, and Mechanical Equipment Program; and 4) partial funding for an Energy Efficiency Coordinator to oversee the City's efforts to reduce energy consumption and conduct a public outreach campaign to promote energy efficiency. Senior Outreach Grant Fund — This fund was established to account for funds passed through the San Bernardino County Department of Aging and Adult Services from the California Department of Aging to provide free recreation classes and programs for senior citizens in the City of Rancho Cucamonga. These recreation activities focused on physical, social, psychological, educational, and recreational needs of older persons. The City provided an in-kind match of $1,200 in the form of marketing, staff oversight, and supplies. Underground Utilities Fund —This fund was established to account for fees collected from developers for future undergrounding of overhead utilities. Safe Routes to School Program - The Safe Routes to School Program fund is a grant fund for monies provided by the State of California. The state funds are administered through Caltrans as part of the California Department of Health Services" "Safe Routes to School Program" and are available for transportation projects that increase the safety of pedestrians and bicyclists. Foothill Boulevard Maintenance Fund - This fund was established to account for funding provided by Cal Trans as part of their relinquishment of Foothill Boulevard to the City of Rancho Cucamonga. This limited funding source will be utilized to repair and maintain portions of Foothill Boulevard. 75 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Citywide Infrastructure Improvement Fund - This fund was established to account for capital improvement reimbursements from the San Bernardino Associated Governments (SANBAG). The funds will be used for general infrastructure improvements throughout the City. COPS Secure our School Grant Fund —This fund was established to account for the grant money use in partnership with public schools to improve school safety. The Big Read Library Grant Fund —This fund was established to account for the grant money receiving from the National Endowment for the Arts. The purpose of the grant is to emphasize a city wide media campaign through guest lectures, group discussions, film showings, and a community theater performance of a designated book. Drink, Drive, Lose Grant Fund -This grant was awarded by the State of California Office of Traffic Safety to provide supplementary funding for overtime costs incurred during sobriety checkpoints. The overall goal of the project is to reduce the number of victims killed and injured as a result of alcohol-involved crashes. Department of Homeland Security Grant Fund - This grant from the State Homeland Security Grant Program is administered by the San Bernardino County Office of Emergency Services. The grant is funded by the Federal Department of Homeland Security. The funds will be utilized to purchase terrorism and weapons of mass destruction (WMDs) response equipment and supplies in conjunction with an appropriate level of training cost funding for national security. There are no matching funds required for this grant. Public Resource Grants Fund - The City had received and will continue to receive from various funding sources for the Healthy Cities concept, which was adopted by the Council in March 2008, as a means of integrating health concerns into a holistic approach to improving the overall quality of life in the community." Proposition 1 B Fund - Proposition 1 B (Prop 1 B) provides state funding to cities and counties to fund the maintenance and improvement of local transportation facilities. The funding is allocated based on population. Henderson/Wardman Drainage Fund -The Henderson/Wardman Drainage fund is a developer impact fee supported fund for the construction of storm drain improvements in the Henderson/Wardman drainage area. Integrated Waste Management Fund — Established to account for AB939 recycling fee revenues from the City's refuse haulers and can only be used for the City's Household Hazardous Waste Disposal program. Assembly Bill 939 is a law that was passed by the State of California that mandates that all cities divert a specified percentage of their solid waste from their landfills in accordance with established deadlines. 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. 76 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) Proposition 42 - Traffic Congestion Relief Fund - This fund was established to account for gasoline sales tax revenue received from the State of California for transportation purposes, including city and county street and road repairs and maintenance. Proposition 42, a legislative constitutional amendment, permanently dedicated revenues from this sales tax on gasoline to transportation infrastructure needs. Justice Assistance Grant Fund - Two Justice Assistance Grants (JAG) were awarded to the Police Department by the United States Department of Justice. The first was in 2005 in the amount of $30,833.00 to purchase police related equipment and technology. The second JAG grant was awarded in 2006 in the amount of $19,514.00. This grant will be used to purchase 14 radar guns for the Police Department's traffic division. This fund accounts for the revenues and expenditures associated with the JAG grants. OTS 2005 State Seatbelt Grant Fund - This fund was established to account for the revenues and expenditures associated with the State of California's Office of Traffic Safety (OTS) Seat Belt Compliance Campaign grant. The grant provided funding for overtime for the Police Department to conduct a twenty- one day seat belt enforcement operation. Senior Transportation Service Fund - Through funding from the County of San Bernardino/Department of Aging and Adult Services, the Senior Transportation Program provides funding for the continuation/enhancement of senior transportation services to homebound senior citizens in the community. Specifically, the program will bring homebound seniors to the James L. Brulte Senior Center (the Center) for the hot lunch program and will allow senior citizens to participate in classes, programs, and other activities at the Center that they may not have been able to participate in due to transportation needs. Funding provided by the County allows for the continuation of our current program, an expansion of services, or the purchase of vehicles, depending upon City needs. Homeland Security Grant 2005 Fund - The City was awarded a $147,776 grant from the State Homeland Security Grant Program administered by the San Bernardino County Office of Emergency Services. The grant is funded by the Federal Department of Homeland Security. The funds will be utilized to purchase terrorism and weapons of mass destruction (WMD's) response equipment and supplies in conjunction with an appropriate level of training costs funding for national security. There are no matching funds required for this grant. 77 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 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. 78 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Capital Projects Funds (Continued) Public Library Bond Act 2000 Fund — This grant is from funds made available by the California Reading and Literacy Improvement and Public Library Construction and Renovation Bond Act of 2000 for the construction of the Victoria Gardens Library. Community Facilities District 2004-01 Rancho Etiwanda Fund — Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to the proposed public financing district. Financing was provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2003-01 Cultural Center Fund - Established to account for the portion of the costs associated with the development of the City's Cultural Arts Center that is being funded by Community Facilities District (CFD) 2003-01. Financing for the CFD will be provided by the sale of bonds under the Mello-Roos Community Facilities Act of 1982. Community Facilities District 2006-01 Vintner's Grove Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006-02 Amador on Route 66 Fund - Established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. 79 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Special Revenue Funds Park Gas Tax Recreation Development Beautification Assets: Cash and investments $ 3,644,215 $ 2,215,102 $ 11,869,132 $ 1,094,361 Receivables: Accounts 524,649 15,308 - - Taxes - - - - Accrued interest 2,005 1,165 7,045 635 Deferred loans - - - - Grants - - - - Prepaid costs - 40,854 - - Deposits - 10,262 - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 4,170,869 $ 2,282,691 $ 11,876,177 $ 1,094,996 Liabilities and Fund Balances: Liabilities: Accounts payable $ 95,612 $ 378,139 $ 30 $ 69,399 Accrued liabilities 33,363 87,102 2,486 820 Deferred revenues - - - - Unearned revenues - 56,058 - 93,407 Due to other governments - - - - Due to other funds - - - - Advances from other funds - - 300,000 - Total Liabilities 128,975 521,299 302,516 163,626 Fund Balances: Nonspendable: Prepaid costs - 40,854 - - Land held for resale - - - - Deposits - 10,262 - - Restricted for: Public safety-police - - - - Community development projects - - 11,573,661 - Parks and recreation - 1,710,276 - - Engineering and public works 4,041,894 - - 931,370 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - - Total Fund Balances 4,041,894 1,761,392 11,573,661 931,370 Total Liabilities and Fund Balances $ 4,170,869 $ 2,282,691 $ 11,876,177 $ 1,094,996 80 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Special Revenue Funds Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Assets: Cash and investments $ 6,363,222 $ 12,643,886 $ 18,370,124 $ 132,411 Receivables: Accounts - - - - Taxes 19,474 98,906 - - Accrued interest 3,856 7,632 10,724 - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 6,386,552 $ 12,750,424 $ 18,380,848 $ 132,411 Liabilities and Fund Balances: Liabilities: Accounts payable $ 155,572 $ 540,881 $ 240,251 $ 131,550 Accrued liabilities 6,152 69,471 5,998 - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds 87,462 - - - Advances from other funds - - - - Total Liabilities 249,186 610,352 246,249 131,550 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - 18,134,599 861 Capital improvement projects - - - - Street lighting 6,137,366 - - - Landscape maintenance - 12,140,072 - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - - Total Fund Balances 6,137,366 12,140,072 18,134,599 861 Total Liabilities and Fund Balances $ 6,386,552 $ 12,750,424 $ 18,380,848 $ 132,411 81 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Assets: Cash and investments $ 123 $ 1,139,316 $ 1,090,102 $ 36,923 Receivables: Accounts - 38 - - Taxes - - - - Accrued interest - 690 646 - Deferred loans 646,000 - - - Grants 517,780 - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale 1,076,211 - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,240,114 $ 1,140,044 $ 1,090,748 $ 36,923 Liabilities and Fund Balances: Liabilities: Accounts payable $ 27,225 $ 15,527 $ - $ - Accrued liabilities 8,936 16,171 - - Deferred revenues 372,791 - - - Unearned revenues - - - - Due to other governments 646,000 - - - Due to other funds 483,685 - - - Advances from other funds - - - - Total Liabilities 1,538,637 31,698 - - Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale 1,076,211 - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - 1,108,346 - - Parks and recreation - - - - Engineering and public works - - - 36,923 Capital improvement projects - - 1,090,748 - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned (374,734) - - - Total Fund Balances 701,477 1,108,346 1,090,748 36,923 Total Liabilities and Fund Balances $ 2,240,114 $ 1,140,044 $ 1,090,748 $ 36,923 82 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Special Revenue Funds South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Assets: Cash and investments $ 675,919 $ 344,049 $ 517,465 $ 9,426 Receivables: Accounts - - - - Taxes - - - - Accrued interest 392 204 307 970 Deferred loans - - - - Grants 43,390 - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 290,258 Total Assets $ 719,701 $ 344,253 $ 517,772 $ 300,654 Liabilities and Fund Balances: Liabilities: Accounts payable $ 38,394 $ - $ 27,150 $ - Accrued liabilities 870 - - - Deferred revenues 43,390 - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 82,654 - 27,150 - Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects 637,047 - - - Parks and recreation - - - - Engineering and public works - 344,253 490,622 - Capital improvement projects - - - 300,654 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - - Total Fund Balances 637,047 344,253 490,622 300,654 Total Liabilities and Fund Balances $ 719,701 $ 344,253 $ 517,772 $ 300,654 83 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Special Revenue Funds California Library Literacy Asset Measure I Services Program Forfeiture Assets: Cash and investments $ 5,105,608 $ 5,587,560 $ - $ 576,398 Receivables: Accounts 128,967 25,000 - - Taxes - 1,433,253 - - Accrued interest 2,935 3,486 - 96 Deferred loans - - - - Grants - - 6,245 7,521 Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,237,510 $ 7,049,299 $ 6,245 $ 584,015 Liabilities and Fund Balances: Liabilities: Accounts payable $ 470,683 $ 70,116 $ 417 $ 10,672 Accrued liabilities 4,314 64,684 3,125 - Deferred revenues - - 6,245 - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - 2,704 - Advances from other funds - - - - Total Liabilities 474,997 134,800 12,491 10,672 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - 573,343 Community development projects - - - - Parks and recreation - - - - Engineering and public works 4,762,513 - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - 6,914,499 - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - (6,246) - Total Fund Balances 4,762,513 6,914,499 (6,246) 573,343 Total Liabilities and Fund Balances $ 5,237,510 $ 7,049,299 $ 6,245 $ 584,015 84 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Special Revenue Funds Used Oil Department of Recycling Transportation COPS Program Drainage Grant Grant-ARRA Grant Facilities Assets: Cash and investments $ 42,330 $ - $ 110,011 $ 4,884,974 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - 2,899 Deferred loans - - - - Grants - - 86,421 - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 42,330 $ - $ 196,432 $ 4,887,873 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 64,426 Accrued liabilities - - - 2,064 Deferred revenues - - - - Unearned revenues 42,225 - - 5,102 Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 42,225 - - 71,592 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - 196,432 - Community development projects 105 - - - Parks and recreation - - - - Engineering and public works - - - 4,816,281 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - - Total Fund Balances 105 - 196,432 4,816,281 Total Liabilities and Fund Balances $ 42,330 $ - $ 196,432 $ 4,887,873 85 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Special Revenue Funds Library Energy Services& Litter Efficient& CA State Technologies Reduction Conservation Library Act Grant Block Grant Assets: Cash and investments $ 87,688 $ 23,835 $ 7,037 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - 80,378 Grants - - - 39,998 Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 87,688 $ 23,835 $ 7,037 $ 120,376 Liabilities and Fund Balances: Liabilities: Accounts payable $ 26,466 $ 154 $ - $ 9,674 Accrued liabilities 763 - - 1,354 Deferred revenues - - - 28,858 Unearned revenues 18,408 - 6,993 - Due to other governments - - - 80,378 Due to other funds - - - 28,971 Advances from other funds - - - - Total Liabilities 45,637 154 6,993 149,235 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - 44 - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services 42,051 23,681 - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - (28,859) Total Fund Balances 42,051 23,681 44 (28,859) Total Liabilities and Fund Balances $ 87,688 $ 23,835 $ 7,037 $ 120,376 86 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Special Revenue Funds Safe Routes to Senior Undergound School Foothill Blvd. Outreach Grant Utilities Program Maintenance Assets: Cash and investments $ - $ 10,143,213 $ - $ 94,425 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 654 - - Deferred loans - - - - Grants 2,400 - 322 - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,400 $ 10,143,867 $ 322 $ 94,425 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 309 $ 3,367 Accrued liabilities - - - 617 Deferred revenues 1,195 - 322 - Unearned revenues - - - - Due to other governments - - - - Due to other funds 2,400 - 12 - Advances from other funds - - - - Total Liabilities 3,595 - 643 3,984 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - 90,441 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - 10,143,867 - - Committed to: Capital Projects - - - - Unassigned (1,195) - (321) - Total Fund Balances (1,195) 10,143,867 (321) 90,441 Total Liabilities and Fund Balances $ 2,400 $ 10,143,867 $ 322 $ 94,425 87 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Special Revenue Funds Citywide COPS Secure Infrastructure our School The Big Read Drink, Drive, Improvement Grant Library Grant Lose Grant Assets: Cash and investments $ 5,796,307 $ - $ 15,372 $ 15,448 Receivables: Accounts 10,800,643 - - - Taxes - - - - Accrued interest 4,313 - - - Deferred loans - - - - Grants - 18,505 - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 16,601,263 $ 18,505 $ 15,372 $ 15,448 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 15,947 $ - $ - Accrued liabilities - 175 - - Deferred revenues 10,689,604 9,049 - - Unearned revenues - - 5,275 13,574 Due to other governments - - - - Due to other funds - 2,384 - - Advances from other funds - - - - Total Liabilities 10,689,604 27,555 5,275 13,574 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - 1,874 Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - 10,097 - Underground utilities - - - - Committed to: Capital Projects 5,911,659 - - - Unassigned - (9,050) - - Total Fund Balances 5,911,659 (9,050) 10,097 1,874 Total Liabilities and Fund Balances $ 16,601,263 $ 18,505 $ 15,372 $ 15,448 88 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Special Revenue Funds Department of Public Henderson/ Homeland Resource Wardman Security Grant Grants Proposition 1 B Drainage Assets: Cash and investments $ - $ 122,268 $ 249,187 $ 813,194 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 245 - Deferred loans - - - - Grants 2,454 - 944 - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,454 $ 122,268 $ 250,376 $ 813,194 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 13,038 $ 19,343 $ - Accrued liabilities - 1,180 - - Deferred revenues 2,454 - 944 - Unearned revenues - - - - Due to other governments - - - - Due to other funds 2,454 - - - Advances from other funds - - - - Total Liabilities 4,908 14,218 20,287 - Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - 108,050 - - Parks and recreation - - - - Engineering and public works - - 230,089 813,194 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned (2,454) - - - Total Fund Balances (2,454) 108,050 230,089 813,194 Total Liabilities and Fund Balances $ 2,454 $ 122,268 $ 250,376 $ 813,194 89 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Special Revenue Funds Proposition 42- Integrated Traffic Justice Waste Federal Grant Congestion Assistance Management Fund -Dreier Relief Grant Assets: Cash and investments $ 3,781,916 $ 13,631 $ 2,308,468 $ 208,326 Receivables: Accounts - - - - Taxes 229,543 - - - Accrued interest 2,272 - 1,472 82 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 4,013,731 $ 13,631 $ 2,309,940 $ 208,408 Liabilities and Fund Balances: Liabilities: Accounts payable $ 159,212 $ 13,545 $ 298,653 $ - Accrued liabilities 19,400 - - - Deferred revenues - - - - Unearned revenues - - - 201,864 Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities 178,612 13,545 298,653 201,864 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - 6,544 Community development projects - - - - Parks and recreation - 86 - - Engineering and public works 3,835,119 - 2,011,287 - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - - Total Fund Balances 3,835,119 86 2,011,287 6,544 Total Liabilities and Fund Balances $ 4,013,731 $ 13,631 $ 2,309,940 $ 208,408 90 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Capital Special Revenue Funds Projects Funds Senior Homeland OTS 2005 State Transportation Security Grant Assessment Seatbelt Grant Service 2005 District 82-1 Assets: Cash and investments $ - $ 64 $ - $ 12,500 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - 7 Deferred loans - - - - Grants 5,952 - 74,941 - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,952 $ 64 $ 74,941 $ 12,507 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 3,132 $ - Accrued liabilities - - 1,613 - Deferred revenues 5,952 - 74,941 - Unearned revenues - - - - Due to other governments - - - - Due to other funds 5,952 - 70,196 - Advances from other funds - - - - Total Liabilities 11,904 - 149,882 - Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - 64 - - Engineering and public works - - - - Capital improvement projects - - - 12,507 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned (5,952) - (74,941) - Total Fund Balances (5,952) 64 (74,941) 12,507 Total Liabilities and Fund Balances $ 5,952 $ 64 $ 74,941 $ 12,507 91 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Capital Projects Funds CFD 2000-02 Rancho Assessment Assessment CFD 2000-01 Cucamonga District 84-1 District 86-2 South Etiwanda Corporate Park Assets: Cash and investments $ 1,066,695 $ - $ 63 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest 633 - - - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - 91,955 581,391 Total Assets $ 1,067,328 $ - $ 92,018 $ 581,391 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - 41,128 - - Advances from other funds - - - - Total Liabilities - 41,128 - - Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 1,067,328 - 92,018 581,391 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - (41,128) - - Total Fund Balances 1,067,328 (41,128) 92,018 581,391 Total Liabilities and Fund Balances $ 1,067,328 $ - $ 92,018 $ 581,391 92 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 (Continued) Capital Projects Funds CFD 2000-03 Rancho CFD 2003-01 Public Library Summit CFD 2001-01 Project Fund Bond Act-2000 Assets: Cash and investments $ 19,208 $ 470,465 $ 5,616 $ - Receivables: Accounts - - - - Taxes - - - - Accrued interest - 279 - - Deferred loans - - - - Grants - - - 850,189 Prepaid costs - - - - Deposits - - - - Due from other funds - - - 244,994 Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents 143,859 18,132 169,281 - Total Assets $ 163,067 $ 488,876 $ 174,897 $ 1,095,183 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 26,019 $ 6,128 Accrued liabilities - - - - Deferred revenues - - - 850,189 Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - 1,011,475 Advances from other funds - 2,560,408 1,393,216 - Total Liabilities - 2,560,408 1,419,235 1,867,792 Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 163,067 - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - (2,071,532) (1,244,338) (772,609) Total Fund Balances 163,067 (2,071,532) (1,244,338) (772,609) Total Liabilities and Fund Balances $ 163,067 $ 488,876 $ 174,897 $ 1,095,183 93 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Capital Projects Funds CFD 2004-01 CFD 2006-02 Rancho CFD 2003-01 CFD 2006-01 Amador on Etiwanda Cultural Center Vintner's Grove Route 66 Assets: Cash and investments $ 4,866 $ 1,253 $ 1,817 $ 5,782 Receivables: Accounts - - - - Taxes - - - - Accrued interest 3 - 1 3 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Due from other funds - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents 983,154 184,621 606,624 1,963 Total Assets $ 988,023 $ 185,874 $ 608,442 $ 7,748 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 6,760 $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Advances from other funds - - - - Total Liabilities - 6,760 - - Fund Balances: Nonspendable: Prepaid costs - - - - Land held for resale - - - - Deposits - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 988,023 179,114 608,442 7,748 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Committed to: Capital Projects - - - - Unassigned - - - - Total Fund Balances 988,023 179,114 608,442 7,748 Total Liabilities and Fund Balances $ 988,023 $ 185,874 $ 608,442 $ 7,748 94 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2011 Total Nonmajor Governmental Funds Assets: Cash and investments $ 101,721,301 Receivables: Accounts 11,494,605 Taxes 1,781,176 Accrued interest 55,651 Deferred loans 726,378 Grants 1,657,062 Prepaid costs 40,854 Deposits 10,262 Due from other funds 244,994 Land held for resale 1,076,211 Restricted assets: Cash and investments with fiscal agents 3,071,238 Total Assets $ 121,879,732 Liabilities and Fund Balances: Liabilities: Accounts payable $ 2,937,791 Accrued liabilities 330,658 Deferred revenues 12,085,934 Unearned revenues 442,906 Due to other governments 726,378 Due to other funds 1,738,823 Advances from other funds 4,253,624 Total Liabilities 22,516,114 Fund Balances: Nonspendable: Prepaid costs 40,854 Land held for resale 1,076,211 Deposits 10,262 Restricted for: Public safety-police 778,193 Community development projects 13,427,253 Parks and recreation 1,710,426 Engineering and public works 40,539,446 Capital improvement projects 5,091,040 Street lighting 6,137,366 Landscape maintenance 12,140,072 Library services 6,990,328 Underground utilities 10,143,867 Committed to: Capital Projects 5,911,659 Unassigned (4,633,359) Total Fund Balances 99,363,618 Total Liabilities and Fund Balances $ 121,879,732 95 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Funds Park Gas Tax Recreation Development Beautification Revenues: Taxes $ - $ - $ - $ - Intergovernmental 4,417,010 - - - Charges for services - 2,767,449 - - Use of money and property 34,191 866,535 147,821 13,585 Contributions - 388,243 - - Developer participation - - 132,973 86,872 Miscellaneous 5,762 129,541 - - Total Revenues 4,456,963 4,151,768 280,794 100,457 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 202,803 - Community services - 4,169,872 - - Engineering and public works 2,467,699 - - 108,845 Capital outlay - - 18,552 266,254 Debt service: Principal retirement 19,290 - - - Interest and fiscal charges 1,186 - - - Total Expenditures 2,488,175 4,169,872 221,355 375,099 Excess(Deficiency)of Revenues Over(Under) Expenditures 1,968,788 (18,104) 59,439 (274,642) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 1,968,788 (18,104) 59,439 (274,642) Fund Balances, Beginning of Year 2,073,106 1,779,496 11,514,222 1,206,012 Fund Balances, End of Year $ 4,041,894 $ 1,761,392 $ 11,573,661 $ 931,370 96 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (Continued) Special Revenue Funds Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Revenues: Taxes $ 2,088,967 $ 10,333,584 $ - $ - Intergovernmental - - - 1,411,393 Charges for services - - - - Use of money and property 70,581 155,918 220,534 861 Contributions - - - - Developer participation 2,892 - 1,465,557 - Miscellaneous - 1,598 - 5,628 Total Revenues 2,162,440 10,491,100 1,686,091 1,417,882 Expenditures: Current: General government 2,448,396 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - 9,318,854 - (5,628) Community services - - - - Engineering and public works - - 1,778,771 - Capital outlay 18,182 97,801 851,320 5,628 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,466,578 9,416,655 2,630,091 - Excess(Deficiency)of Revenues Over(Under) Expenditures (304,138) 1,074,445 (944,000) 1,417,882 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (304,138) 1,074,445 (944,000) 1,417,882 Fund Balances, Beginning of Year 6,441,504 11,065,627 19,078,599 (1,417,021) Fund Balances, End of Year $ 6,137,366 $ 12,140,072 $ 18,134,599 $ 861 97 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Revenues: Taxes $ - $ - $ - $ - Intergovernmental 3,110,098 - - - Charges for services - - -Use of money and property - 13,905 14,318 (277) Contributions - - - - Developer participation - - 43,793 - Miscellaneous - 853,393 - - Total Revenues 3,110,098 867,298 58,111 (277) Expenditures: Current: General government - 892,311 - - Public safety-police - - - - Public safety-fire protection - - - - Community development 1,740,898 - - - Community services - - - - Engineering and public works - - - - Capital outlay 183,961 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,924,859 892,311 - - Excess(Deficiency)of Revenues Over(Under) Expenditures 1,185,239 (25,013) 58,111 (277) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 1,185,239 (25,013) 58,111 (277) Fund Balances, Beginning of Year (483,762) 1,133,359 1,032,637 37,200 Fund Balances, End of Year $ 701,477 $ 1,108,346 $ 1,090,748 $ 36,923 98 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (Continued) Special Revenue Funds South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Revenues: Taxes $ - $ - $ - $ - Intergovernmental 153,513 - - - Charges for services - - -Use of money and property 7,219 3,850 6,552 168 Contributions - - - - Developer participation - 181,500 - - Miscellaneous - - - 1,500 Total Revenues 160,732 185,350 6,552 1,668 Expenditures: Current: General government 61,815 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - 27,150 - Capital outlay 156,237 - 32,275 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 218,052 - 59,425 - Excess(Deficiency)of Revenues Over(Under) Expenditures (57,320) 185,350 (52,873) 1,668 Other Financing Sources(Uses): Transfers in 24,731 - - - Transfers out - - - - Total Other Financing Sources (Uses) 24,731 - - - Net Change in Fund Balances (32,589) 185,350 (52,873) 1,668 Fund Balances, Beginning of Year 669,636 158,903 543,495 298,986 Fund Balances, End of Year $ 637,047 $ 344,253 $ 490,622 $ 300,654 99 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Funds California Library Literacy Asset Measure I Services Program Forfeiture Revenues: Taxes $ - $ 3,276,565 $ - $ - Intergovernmental 2,286,614 1,386 29,880 74,839 Charges for services - 413,836 - - Use of money and property 57,761 55,842 - (2,645) Contributions - 216,194 15,000 - Developer participation - - - - Miscellaneous - 44,441 - - Total Revenues 2,344,375 4,008,264 44,880 72,194 Expenditures: Current: General government - - - - Public safety-police - - - 162,640 Public safety-fire protection - - - - Community development - - - - Community services - 3,569,810 100,326 - Engineering and public works 1,211,506 - - - Capital outlay 545,780 - - 11,375 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,757,286 3,569,810 100,326 174,015 Excess(Deficiency)of Revenues Over(Under) Expenditures 587,089 438,454 (55,446) (101,821) Other Financing Sources(Uses): Transfers in - - 58,060 - Transfers out - (58,060) - - Total Other Financing Sources (Uses) - (58,060) 58,060 - Net Change in Fund Balances 587,089 380,394 2,614 (101,821) Fund Balances, Beginning of Year 4,175,424 6,534,105 (8,860) 675,164 Fund Balances, End of Year $ 4,762,513 $ 6,914,499 $ (6,246) $ 573,343 100 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (Continued) Special Revenue Funds Used Oil Department of Recycling Transportation COPS Drainage Grant Grant-ARRA Program Grant Facilities Revenues: Taxes $ - $ - $ - $ - Intergovernmental 35,025 100,000 175,210 - Charges for services - - -Use of money and property 268 - 45 57,782 Contributions - - - - Developer participation - - - 319,764 Miscellaneous - - - 233 Total Revenues 35,293 100,000 175,255 377,779 Expenditures: Current: General government - - - - Public safety-police - - 111,670 - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 26,063 - - 358,071 Capital outlay - 100,000 - 703,272 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 26,063 100,000 111,670 1,061,343 Excess(Deficiency)of Revenues Over(Under) Expenditures 9,230 - 63,585 (683,564) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 9,230 - 63,585 (683,564) Fund Balances, Beginning of Year (9,125) - 132,847 5,499,845 Fund Balances, End of Year $ 105 $ - $ 196,432 $ 4,816,281 101 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Funds Library Energy Services& Litter Efficient& CA State Technologies Reduction Conservation Library Act Grant Block Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental 197,899 94,050 16,703 211,020 Charges for services - - - - Use of money and property 496 (208) 16 - Contributions 41,500 13,500 - - Developer participation - - - - Miscellaneous - - - - Total Revenues 239,895 107,342 16,719 211,020 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - 100,206 Community services 160,656 105,201 - - Engineering and public works - - 16,675 - Capital outlay 37,188 - - 76,101 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 197,844 105,201 16,675 176,307 Excess(Deficiency)of Revenues Over(Under) Expenditures 42,051 2,141 44 34,713 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 42,051 2,141 44 34,713 Fund Balances, Beginning of Year - 21,540 - (63,572) Fund Balances, End of Year $ 42,051 $ 23,681 $ 44 $ (28,859) 102 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (Continued) Special Revenue Funds Senior Safe Routes to Outreach Undergound School Foothill Blvd. Grant Utilities Program Maintenance Revenues: Taxes $ - $ - $ - $ - Intergovernmental 6,320 - - - Charges for services - 201,206 -Use of money and property - 167,548 - (1,629) Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 6,320 368,754 - (1,629) Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services 7,515 - - - Engineering and public works - 325,950 309 68,995 Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 7,515 325,950 309 68,995 Excess(Deficiency)of Revenues Over(Under) Expenditures (1,195) 42,804 (309) (70,624) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (1,195) 42,804 (309) (70,624) Fund Balances, Beginning of Year - 10,101,063 (12) 161,065 Fund Balances, End of Year $ (1,195) $ 10,143,867 $ (321) $ 90,441 103 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Funds Citywide COPS Secure Infrastructure our School The Big Read Drink, Drive, Improvement Grant Library Grant Lose Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental 3,200,357 14,328 - - Charges for services - - -Use of money and property 104,265 - (33) (116) Contributions - - - - Developer participation - - - - Miscellaneous - - 714 - Total Revenues 3,304,622 14,328 681 (116) Expenditures: Current: General government - - - - Public safety-police - 30,966 - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - 15,789 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 46,755 - - Excess(Deficiency)of Revenues Over(Under) Expenditures 3,304,622 (32,427) 681 (116) Other Financing Sources(Uses): Transfers in - 23,377 - - Transfers out - - - - Total Other Financing Sources (Uses) - 23,377 - - Net Change in Fund Balances 3,304,622 (9,050) 681 (116) Fund Balances, Beginning of Year 2,607,037 - 9,416 1,990 Fund Balances, End of Year $ 5,911,659 $ (9,050) $ 10,097 $ 1,874 104 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (Continued) Special Revenue Funds Department of Public Henderson/ Homeland Resource Proposition Wardman Security Grant Grants 1 B Drainage Revenues: Taxes $ - $ - $ - $ - Intergovernmental 45,471 - 200,111 - Charges for services - - -Use of money and property - 10 3,717 (6,096) Contributions - 165,150 - - Developer participation - - - - Miscellaneous - 545 - - Total Revenues 45,471 165,705 203,828 (6,096) Expenditures: Current: General government - 109,817 - - Public safety-police - - - - Public safety-fire protection 28,733 - - - Community development - - 201,056 - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 28,733 109,817 201,056 - Excess(Deficiency)of Revenues Over(Under) Expenditures 16,738 55,888 2,772 (6,096) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 16,738 55,888 2,772 (6,096) Fund Balances, Beginning of Year (19,192) 52,162 227,317 819,290 Fund Balances, End of Year $ (2,454) $ 108,050 $ 230,089 $ 813,194 105 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Special Revenue Funds Proposition 42 Integrated -Traffic Justice Waste Federal Grant Congestion Assistance Management Fund -Dreier Relief Grant Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - 13,690 Charges for services 1,011,563 - - - Use of money and property 46,818 (102) 35,450 1,752 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 1,058,381 (102) 35,450 15,442 Expenditures: Current: General government - - - - Public safety-police - - - 11,346 Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 935,306 - 509,284 - Capital outlay 151,083 - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,086,389 - 509,284 11,346 Excess(Deficiency)of Revenues Over(Under) Expenditures (28,008) (102) (473,834) 4,096 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (28,008) (102) (473,834) 4,096 Fund Balances, Beginning of Year 3,863,127 188 2,485,121 2,448 Fund Balances, End of Year $ 3,835,119 $ 86 $ 2,011,287 $ 6,544 106 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (Continued) Capital Special Revenue Funds Projects Funds OTS 2005 Senior Homeland State Seatbelt Transportation Security Grant Assessment Grant Service 2005 District 82-1 Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - - - Use of money and property - (342) - 159 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues - (342) - 159 Expenditures: Current: General government - - - - Public safety-police 5,952 - 21,332 - Public safety-fire protection - - - - Community development - - - - Community services - 6,218 - - Engineering and public works - - - - Capital outlay - - 28,199 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 5,952 6,218 49,531 - Excess(Deficiency)of Revenues Over(Under) Expenditures (5,952) (6,560) (49,531) 159 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (5,952) (6,560) (49,531) 159 Fund Balances, Beginning of Year - 6,624 (25,410) 12,348 Fund Balances, End of Year $ (5,952) $ 64 $ (74,941) $ 12,507 107 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Capital Projects Funds CFD 2000-02 CFD 2000-01 Rancho Assessment Assessment South Cucamonga District 84-1 District 86-2 Etiwanda Corporate Park Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - - - Use of money and property 13,606 - 9 58 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 13,606 - 9 58 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - - - Excess(Deficiency)of Revenues Over(Under) Expenditures 13,606 - 9 58 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 13,606 - 9 58 Fund Balances, Beginning of Year 1,053,722 (41,128) 92,009 581,333 Fund Balances, End of Year $ 1,067,328 $ (41,128) $ 92,018 $ 581,391 108 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 (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 - - - 647,853 Charges for services - - - - Use of money and property (126) 6,002 (22) - Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues (126) 6,002 (22) 647,853 Expenditures: Current: General government 8 - - - 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 8 - - - Excess(Deficiency)of Revenues Over(Under) Expenditures (134) 6,002 (22) 647,853 Other Financing Sources(Uses): Transfers in - - - 77,580 Transfers out - - - - Total Other Financing Sources (Uses) - - - 77,580 Net Change in Fund Balances (134) 6,002 (22) 725,433 Fund Balances, Beginning of Year 163,201 (2,077,534) (1,244,316) (1,498,042) Fund Balances, End of Year $ 163,067 $ (2,071,532) $ (1,244,338) $ (772,609) 109 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Capital Projects Funds CFD 2004-01 CFD 2006-01 CFD 2006-02 Rancho CFD 2003-01 Vintner's Amador on Etiwanda Cultural Center Grove Route 66 Revenues: Taxes $ - $ - $ - $ - Intergovernmental - - - - Charges for services - - - - Use of money and property 168 32 88 73 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 168 32 88 73 Expenditures: Current: General government 105,741 - 362,695 - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - 6,974 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 105,741 6,974 362,695 - Excess(Deficiency)of Revenues Over(Under) Expenditures (105,573) (6,942) (362,607) 73 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (105,573) (6,942) (362,607) 73 Fund Balances, Beginning of Year 1,093,596 186,056 971,049 7,675 Fund Balances, End of Year $ 988,023 $ 179,114 $ 608,442 $ 7,748 110 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2011 Total Nonmajor Governmental Funds Revenues: Taxes $ 15,699,116 Intergovernmental 16,442,770 Charges for services 4,394,054 Use of money and property 2,096,407 Contributions 839,587 Developer participation 2,233,351 Miscellaneous 1,043,355 Total Revenues 42,748,640 Expenditures: Current: General government 3,980,783 Public safety-police 343,906 Public safety-fire protection 28,733 Community development 11,558,189 Community services 8,119,598 Engineering and public works 7,834,624 Capital outlay 3,305,971 Debt service: Principal retirement 19,290 Interest and fiscal charges 1,186 Total Expenditures 35,192,280 Excess(Deficiency)of Revenues Over(Under) Expenditures 7,556,360 Other Financing Sources(Uses): Transfers in 183,748 Transfers out (58,060) Total Other Financing Sources (Uses) 125,688 Net Change in Fund Balances 7,682,048 Fund Balances, Beginning of Year 91,681,570 Fund Balances, End of Year $ 99,363,618 111 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $2,073,106 $ 2,073,106 $ 2,073,106 $ - Resources(Inflows): Intergovernmental 2,739,700 4,644,730 4,417,010 (227,720) Use of money and property 16,520 23,780 34,191 10,411 Miscellaneous - - 5,762 5,762 Amounts Available for Appropriation 4,829,326 6,741,616 6,530,069 (211,547) Charges to Appropriation(Outflow): Engineering and public works 2,369,090 2,652,530 2,577,821 74,709 Debt service: Principal retirement 19,290 19,290 19,290 - Interest and fiscal charges 1,190 1,190 1,186 4 Total Charges to Appropriations 2,389,570 2,673,010 2,598,297 74,713 Budgetary Fund Balance,June 30(Budgetary Basis) $2,439,756 $ 4,068,606 3,931,772 $ (136,834) Encumbrances 110,122 Budgetary Fund Balance, June 30(GAAP Basis) $ 4,041,894 112 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,779,496 $ 1,779,496 $ 1,779,496 $ - Resources(Inflows): Charges for services 2,873,770 2,836,090 2,767,449 (68,641) Use of money and property 837,120 883,690 866,535 (17,155) Contributions 398,060 437,060 388,243 (48,817) Miscellaneous 136,170 124,400 129,541 5,141 Amounts Available for Appropriation 6,024,616 6,060,736 5,931,264 (129,472) Charges to Appropriation (Outflow): Parks and recreation 4,728,810 4,682,110 4,181,270 500,840 Total Charges to Appropriations 4,728,810 4,682,110 4,181,270 500,840 Budgetary Fund Balance,June 30(Budgetary Basis) $1,295,806 $ 1,378,626 1,749,994 $ 371,368 Encumbrances 11,398 Budgetary Fund Balance, June 30(GAAP Basis) $ 1,761,392 113 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PARK DEVELOPMENT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 11,514,222 $11,514,222 $11,514,222 $ - Resources(Inflows): Use of money and property 203,260 202,520 147,821 (54,699) Developer participation 89,000 91,890 132,973 41,083 Amounts Available for Appropriation 11,806,482 11,808,632 11,795,016 (13,616) Charges to Appropriation(Outflow): Community development 235,910 227,470 202,803 24,667 Capital outlay 561,800 539,600 541,915 (2,315) Total Charges to Appropriations 797,710 767,070 744,718 22,352 Budgetary Fund Balance,June 30(Budgetary Basis) $11,008,772 $11,041,562 11,050,298 $ 8,736 Encumbrances 523,363 Budgetary Fund Balance, June 30(GAAP Basis) $11,573,661 114 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,206,012 $ 1,206,012 $ 1,206,012 $ - Resources(Inflows): Intergovernmental 100,000 100,000 - (100,000) Use of money and property 24,540 22,200 13,585 (8,615) Developer participation 15,000 17,710 86,872 69,162 Amounts Available for Appropriation 1,345,552 1,345,922 1,306,469 (39,453) Charges to Appropriation(Outflow): Engineering and public works 97,260 97,680 108,845 (11,165) Capital outlay 817,940 388,430 302,872 85,558 Total Charges to Appropriations 915,200 486,110 411,717 74,393 Budgetary Fund Balance, June 30(Budgetary Basis) $ 430,352 $ 859,812 894,752 $ 34,940 Encumbrances 36,618 Budgetary Fund Balance, June 30(GAAP Basis) $ 931,370 115 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $6,441,504 $ 6,441,504 $ 6,441,504 $ - Resources(Inflows): Taxes 1,897,890 1,969,160 2,088,967 119,807 Use of money and property 105,900 106,300 70,581 (35,719) Developer participation 2,850 1,400 2,892 1,492 Amounts Available for Appropriation 8,448,144 8,518,364 8,603,944 85,580 Charges to Appropriation (Outflow): General government 2,595,390 2,586,840 2,448,396 138,444 Capital outlay 471,000 479,850 467,854 11,996 Total Charges to Appropriations 3,066,390 3,066,690 2,916,250 150,440 Budgetary Fund Balance,June 30(Budgetary Basis) $5,381,754 $ 5,451,674 5,687,694 $ 236,020 Encumbrances 449,672 Budgetary Fund Balance, June 30(GAAP Basis) $ 6,137,366 116 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 11,065,627 $ 11,065,627 $11,065,627 $ - Resources(Inflows): Taxes 9,329,040 9,668,021 10,333,584 665,563 Use of money and property 179,690 181,730 155,918 (25,812) Miscellaneous 1,290 1,290 1,598 308 Amounts Available for Appropriation 20,575,647 20,916,668 21,556,727 640,059 Charges to Appropriation (Outflow): Community development 10,373,760 9,689,930 9,396,429 293,501 Capital outlay 510,000 97,880 97,801 79 Total Charges to Appropriations 10,883,760 9,787,810 9,494,230 293,580 Budgetary Fund Balance,June 30(Budgetary Basis) $ 9,691,887 $11,128,858 12,062,497 $ 933,639 Encumbrances 77,575 Budgetary Fund Balance, June 30(GAAP Basis) $12,140,072 117 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) TRANSPORTATION YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 19,078,599 $19,078,599 $19,078,599 $ - Resources(Inflows): Use of money and property 295,680 320,030 220,534 (99,496) Developer participation 1,093,460 444,230 1,465,557 1,021,327 Amounts Available for Appropriation 20,467,739 19,842,859 20,764,690 921,831 Charges to Appropriation(Outflow): Engineering and public works 1,264,000 1,432,800 1,779,297 (346,497) Capital outlay 4,400,000 3,873,370 1,910,192 1,963,178 Total Charges to Appropriations 5,664,000 5,306,170 3,689,489 1,616,681 Budgetary Fund Balance,June 30(Budgetary Basis) $14,803,739 $14,536,689 17,075,201 $ 2,538,512 Encumbrances 1,059,398 Budgetary Fund Balance, June 30(GAAP Basis) $18,134,599 118 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PEDESTRIAN GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $(1,417,021) $ (1,417,021) $ (1,417,021) $ - Resources(Inflows): Intergovernmental - 3,000 1,411,393 1,408,393 Use of money and property - - 861 861 Miscellaneous - - 5,628 5,628 Amounts Available for Appropriation (1,417,021) (1,414,021) 861 1,414,882 Budgetary Fund Balance,June 30(Budgetary Basis) $(1,417,021) $ (1,414,021) 861 $ 1,414,882 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 861 119 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (483,762) $ (483,762) $ (483,762) $ - Resources(Inflows): Intergovernmental 2,267,040 3,270,610 3,110,098 (160,512) Miscellaneous 90,000 90,000 - (90,000) Amounts Available for Appropriation 1,873,278 2,876,848 2,626,336 (250,512) Charges to Appropriation(Outflow): Community development 353,550 451,210 1,740,898 (1,289,688) Capital outlay 2,003,490 2,909,400 242,883 2,666,517 Total Charges to Appropriations 2,357,040 3,360,610 1,983,781 1,376,829 Budgetary Fund Balance, June 30(Budgetary Basis) $ (483,762) $ (483,762) 642,555 $ 1,126,317 Encumbrances 58,922 Budgetary Fund Balance,June 30(GAAP Basis) $ 701,477 120 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,133,359 $ 1,133,359 $ 1,133,359 $ - Resources(Inflows): Use of money and property 16,840 18,720 13,905 (4,815) Miscellaneous 899,210 899,210 853,393 (45,817) Amounts Available for Appropriation 2,049,409 2,051,289 2,000,657 (50,632) Charges to Appropriation(Outflow): General government 906,020 954,460 893,360 61,100 Total Charges to Appropriations 906,020 954,460 893,360 61,100 Budgetary Fund Balance,June 30(Budgetary Basis) $1,143,389 $ 1,096,829 1,107,297 $ 10,468 Encumbrances 1,049 Budgetary Fund Balance,June 30(GAAP Basis) $ 1,108,346 121 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAN SEVAINE/ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,032,637 $ 1,032,637 $ 1,032,637 $ - Resources(Inflows): Use of money and property 14,880 18,310 14,318 (3,992) Developer participation - 40,000 43,793 3,793 Amounts Available for Appropriation 1,047,517 1,090,947 1,090,748 (199) Charges to Appropriation(Outflow): Engineering and public works 495,000 - - - Total Charges to Appropriations 495,000 - - - Budgetary Fund Balance, June 30(Budgetary Basis) $ 552,517 $ 1,090,947 1,090,748 $ (199) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,090,748 122 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 669,636 $ 669,636 $ 669,636 $ - Resources(Inflows): Intergovernmental 203,320 203,320 153,513 (49,807) Use of money and property 6,630 9,030 7,219 (1,811) Transfers in - 24,730 24,731 1 Amounts Available for Appropriation 879,586 906,716 855,099 (51,617) Charges to Appropriation(Outflow): General government 81,220 67,790 63,315 4,475 Capital outlay 60,000 220,000 218,766 1,234 Total Charges to Appropriations 141,220 287,790 282,081 5,709 Budgetary Fund Balance, June 30(Budgetary Basis) $ 738,366 $ 618,926 573,018 $ (45,908) Encumbrances 64,029 Budgetary Fund Balance, June 30(GAAP Basis) $ 637,047 123 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SOUTH DRAINAGE ETIWANDA YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 158,903 $ 158,903 $ 158,903 $ - Resources(Inflows): Use of money and property 1,680 2,740 3,850 1,110 Developer participation - - 181,500 181,500 Amounts Available for Appropriation 160,583 161,643 344,253 182,610 Charges to Appropriation(Outflow): Capital outlay 35,000 49,170 49,170 - Total Charges to Appropriations 35,000 49,170 49,170 - Budgetary Fund Balance, June 30(Budgetary Basis) $ 125,583 $ 112,473 295,083 $ 182,610 Encumbrances 49,170 Budgetary Fund Balance,June 30(GAAP Basis) $ 344,253 124 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 543,495 $ 543,495 $ 543,495 $ - Resources(Inflows): Use of money and property 12,240 9,370 6,552 (2,818) Amounts Available for Appropriation 555,735 552,865 550,047 (2,818) Charges to Appropriation (Outflow): Engineering and public works - 27,150 27,150 - Capital outlay - 32,280 32,275 5 Total Charges to Appropriations - 59,430 59,425 5 Budgetary Fund Balance, June 30(Budgetary Basis) $ 555,735 $ 493,435 490,622 $ (2,813) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 490,622 125 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 298,986 $ 298,986 $ 298,986 $ - Resources(Inflows): Use of money and property 340 150 168 18 Miscellaneous - - 1,500 1,500 Amounts Available for Appropriation 299,326 299,136 300,654 1,518 Budgetary Fund Balance,June 30(Budgetary Basis) $ 299,326 $ 299,136 300,654 $ 1,518 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 300,654 126 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $4,175,424 $ 4,175,424 $ 4,175,424 $ - Resources(Inflows): Intergovernmental 1,981,250 2,145,120 2,286,614 141,494 Use of money and property 70,870 75,220 57,761 (17,459) Amounts Available for Appropriation 6,227,544 6,395,764 6,519,799 124,035 Charges to Appropriation(Outflow): Engineering and public works 1,325,980 1,284,840 1,211,506 73,334 Capital outlay 1,659,000 1,167,090 628,054 539,036 Total Charges to Appropriations 2,984,980 2,451,930 1,839,560 612,370 Budgetary Fund Balance,June 30(Budgetary Basis) $3,242,564 $ 3,943,834 4,680,239 $ 736,405 Encumbrances 82,274 Budgetary Fund Balance, June 30(GAAP Basis) $ 4,762,513 127 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $6,534,105 $ 6,534,105 $ 6,534,105 $ - Resources(Inflows): Taxes 3,275,880 3,186,660 3,276,565 89,905 Intergovernmental - - 1,386 1,386 Charges for services 293,300 322,530 413,836 91,306 Use of money and property 84,950 93,550 55,842 (37,708) Contributions 162,000 167,000 216,194 49,194 Miscellaneous 70,000 70,000 44,441 (25,559) Amounts Available for Appropriation 10,420,235 10,373,845 10,542,369 168,524 Charges to Appropriation(Outflow): Parks and recreation 3,990,690 4,084,510 3,573,025 511,485 Transfers out 58,060 58,060 58,060 - Total Charges to Appropriations 4,048,750 4,142,570 3,631,085 511,485 Budgetary Fund Balance,June 30(Budgetary Basis) $6,371,485 $ 6,231,275 6,911,284 $ 680,009 Encumbrances 3,215 Budgetary Fund Balance, June 30(GAAP Basis) $ 6,914,499 128 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CALIFORNIA LITERACY PROGRAM YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (8,860) $ (8,860) $ (8,860) $ - Resources(Inflows): Intergovernmental 29,440 29,880 29,880 - Contributions 15,000 15,000 15,000 - Transfers in 58,060 58,060 58,060 - Amounts Available for Appropriation 93,640 94,080 94,080 - Charges to Appropriation (Outflow): Parks and recreation 102,500 103,480 100,390 3,090 Total Charges to Appropriations 102,500 103,480 100,390 3,090 Budgetary Fund Balance, June 30(Budgetary Basis) $ (8,860) $ (9,400) (6,310) $ 3,090 Encumbrances 64 Budgetary Fund Balance, June 30(GAAP Basis) $ (6,246) 129 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSET FORFEITURE YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 675,164 $ 675,164 $ 675,164 $ - Resources(Inflows): Intergovernmental - 60,670 74,839 14,169 Use of money and property - 1,700 (2,645) (4,345) Amounts Available for Appropriation 675,164 737,534 747,358 9,824 Charges to Appropriation(Outflow): Public safety - 152,890 162,640 (9,750) Capital outlay - 11,420 11,375 45 Total Charges to Appropriations - 164,310 174,015 (9,705) Budgetary Fund Balance, June 30(Budgetary Basis) $ 675,164 $ 573,224 573,343 $ 119 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 573,343 130 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) USED OIL RECYCLING GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (9,125) $ (9,125) $ (9,125) $ - Resources(Inflows): Intergovernmental 20,900 25,900 35,025 9,125 Use of money and property - - 268 268 Amounts Available for Appropriation 11,775 16,775 26,168 9,393 Charges to Appropriation(Outflow): Engineering and public works 20,900 25,900 26,063 (163) Total Charges to Appropriations 20,900 25,900 26,063 (163) Budgetary Fund Balance, June 30(Budgetary Basis) $ (9,125) $ (9,125) 105 $ 9,230 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 105 131 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COPS PROGRAM GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 132,847 $ 132,847 $ 132,847 $ - Resources(Inflows): Intergovernmental - 215,140 175,210 (39,930) Use of money and property - - 45 45 Amounts Available for Appropriation 132,847 347,987 308,102 (39,885) Charges to Appropriation(Outflow): Public safety 187,170 148,000 111,670 36,330 Total Charges to Appropriations 187,170 148,000 111,670 36,330 Budgetary Fund Balance, June 30(Budgetary Basis) $ (54,323) $ 199,987 196,432 $ (3,555) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 196,432 132 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DRAINAGE FACILITIES YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $5,499,845 $ 5,499,845 $ 5,499,845 $ - Resources(Inflows): Use of money and property 110,380 94,000 57,782 (36,218) Developer participation 260,000 291,820 319,764 27,944 Miscellaneous - - 233 233 Amounts Available for Appropriation 5,870,225 5,885,665 5,877,624 (8,041) Charges to Appropriation(Outflow): Engineering and public works 243,230 242,510 358,071 (115,561) Capital outlay 40,000 1,111,480 783,353 328,127 Total Charges to Appropriations 283,230 1,353,990 1,141,424 212,566 Budgetary Fund Balance,June 30(Budgetary Basis) $5,586,995 $ 4,531,675 4,736,200 $ 204,525 Encumbrances 80,081 Budgetary Fund Balance, June 30(GAAP Basis) $ 4,816,281 133 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CA STATE LIBRARY YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 347,440 197,899 (149,541) Use of money and property - - 496 496 Contributions - 41,500 41,500 - Amounts Available for Appropriation - 388,940 239,895 (149,045) Charges to Appropriation(Outflow): Parks and recreation - 303,220 214,492 88,728 Capital outlay - 36,740 37,188 (448) Total Charges to Appropriations - 339,960 251,680 88,280 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ 48,980 (11,785) $ (60,765) Encumbrances 53,836 Budgetary Fund Balance, June 30(GAAP Basis) $ 42,051 134 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LIBRARY SERVICES&TECHNOLOGIES ACT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 21,540 $ 21,540 $ 21,540 $ - Resources(Inflows): Intergovernmental - 99,500 94,050 (5,450) Use of money and property - - (208) (208) Contributions - 13,500 13,500 - Amounts Available for Appropriation 21,540 134,540 128,882 (5,658) Charges to Appropriation (Outflow): Parks and recreation - 113,000 105,288 7,712 Total Charges to Appropriations - 113,000 105,288 7,712 Budgetary Fund Balance, June 30(Budgetary Basis) $ 21,540 $ 21,540 23,594 $ 2,054 Encumbrances 87 Budgetary Fund Balance,June 30(GAAP Basis) $ 23,681 135 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental 22,000 22,000 16,703 (5,297) Use of money and property - - 16 16 Amounts Available for Appropriation 22,000 22,000 16,719 (5,281) Charges to Appropriation(Outflow): Engineering and public works 22,000 22,000 16,675 5,325 Total Charges to Appropriations 22,000 22,000 16,675 5,325 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - 44 $ 44 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 44 136 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ENERGY EFFICIENT&CONSERVATION BLOCK GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (63,572) $ (63,572) $ (63,572) $ - Resources(Inflows): Intergovernmental 1,144,530 1,226,900 211,020 (1,015,880) Amounts Available for Appropriation 1,080,958 1,163,328 147,448 (1,015,880) Charges to Appropriation(Outflow): Community development - 22,970 100,206 (77,236) Capital outlay 1,144,530 1,203,930 1,229,665 (25,735) Total Charges to Appropriations 1,144,530 1,226,900 1,329,871 (102,971) Budgetary Fund Balance, June 30(Budgetary Basis) $ (63,572) $ (63,572) (1,182,423) $ (1,118,851) Encumbrances 1,153,564 Budgetary Fund Balance,June 30(GAAP Basis) $ (28,859) 137 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SENIOR OUTREACH GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental 7,500 7,500 6,320 (1,180) Amounts Available for Appropriation 7,500 7,500 6,320 (1,180) Charges to Appropriation(Outflow): Parks and recreation 7,500 7,500 7,515 (15) Total Charges to Appropriations 7,500 7,500 7,515 (15) Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ - (1,195) $ (1,195) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (1,195) 138 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 10,101,063 $ 10,101,063 $10,101,063 $ - Resources(Inflows): Charges for services - 320,000 201,206 (118,794) Use of money and property - 159,230 167,548 8,318 Amounts Available for Appropriation 10,101,063 10,580,293 10,469,817 (110,476) Charges to Appropriation(Outflow): Public works 1,305,780 375,410 325,950 49,460 Total Charges to Appropriations 1,305,780 375,410 325,950 49,460 Budgetary Fund Balance,June 30(Budgetary Basis) $ 8,795,283 $ 10,204,883 10,143,867 $ (61,016) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $10,143,867 139 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (12) $ (12) $ (12) $ - Resources(Inflows): Intergovernmental 340,790 340,790 - (340,790) Amounts Available for Appropriation 340,778 340,778 (12) (340,790) Charges to Appropriation(Outflow): Public works 114,800 114,800 309 114,491 Capital outlay 225,990 225,990 - 225,990 Total Charges to Appropriations 340,790 340,790 309 340,481 Budgetary Fund Balance,June 30(Budgetary Basis) $ (12) $ (12) (321) $ (309) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (321) 140 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) FOOTHILL BLVD. MAINTNENANCE YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 161,065 $ 161,065 $ 161,065 $ - Resources(Inflows): Use of money and property - - (1,629) (1,629) Amounts Available for Appropriation 161,065 161,065 159,436 (1,629) Charges to Appropriation(Outflow): Public works 72,910 72,900 68,995 3,905 Total Charges to Appropriations 72,910 72,900 68,995 3,905 Budgetary Fund Balance, June 30(Budgetary Basis) $ 88,155 $ 88,165 90,441 $ 2,276 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 90,441 141 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,607,037 $ 2,607,037 $ 2,607,037 $ - Resources(Inflows): Intergovernmental 3,700,000 4,566,420 3,200,357 (1,366,063) Use of money and property - 65,680 104,265 38,585 Amounts Available for Appropriation 6,307,037 7,239,137 5,911,659 (1,327,478) Budgetary Fund Balance,June 30(Budgetary Basis) $ 6,307,037 $ 7,239,137 5,911,659 $ (1,327,478) Encumbrances - Budgetary Fund Balance, June 30(GAAP Basis) $ 5,911,659 142 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) COPS SECURE OUR SCHOOL GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources(Inflows): Intergovernmental - 70,080 14,328 (55,752) Transfers in - 70,080 23,377 (46,703) Amounts Available for Appropriation - 140,160 37,705 (102,455) Charges to Appropriation(Outflow): Public safety - 120,150 34,760 85,390 Capital outlay - 20,000 15,789 4,211 Total Charges to Appropriations - 140,150 50,549 89,601 Budgetary Fund Balance,June 30(Budgetary Basis) $ - $ 10 (12,844) $ (12,854) Encumbrances 3,794 Budgetary Fund Balance,June 30(GAAP Basis) $ (9,050) 143 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) THE BIG READ LIBRARY GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 9,416 $ 9,416 $ 9,416 $ - Resources(Inflows): Intergovernmental 20,000 20,000 - (20,000) Use of money and property - - (33) (33) Miscellaneous - - 714 714 Amounts Available for Appropriation 29,416 29,416 10,097 (19,319) Charges to Appropriation(Outflow): Parks and recreation 20,000 20,000 - 20,000 Total Charges to Appropriations 20,000 20,000 - 20,000 Budgetary Fund Balance, June 30(Budgetary Basis) $ 9,416 $ 9,416 10,097 $ 681 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 10,097 144 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) DEPARTMENT OF HOMELAND SECURITY GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (19,192) $ (19,192) $ (19,192) $ - Resources(Inflows): Intergovernmental - - 45,471 45,471 Amounts Available for Appropriation (19,192) (19,192) 26,279 45,471 Charges to Appropriation(Outflow): Other 1 - 29,380 28,733 647 Total Charges to Appropriations - 29,380 28,733 647 Budgetary Fund Balance, June 30(Budgetary Basis) $ (19,192) $ (48,572) (2,454) $ 46,118 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (2,454) 145 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 52,162 $ 52,162 $ 52,162 $ - Resources(Inflows): Use of money and property - - 10 10 Contributions 91,910 165,170 165,150 (20) Miscellaneous - 270 545 275 Amounts Available for Appropriation 144,072 217,602 217,867 265 Charges to Appropriation(Outflow): General government 123,700 131,550 117,743 13,807 Total Charges to Appropriations 123,700 131,550 117,743 13,807 Budgetary Fund Balance, June 30(Budgetary Basis) $ 20,372 $ 86,052 100,124 $ 14,072 Encumbrances 7,926 Budgetary Fund Balance,June 30(GAAP Basis) $ 108,050 146 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 1 B YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 227,317 $ 227,317 $ 227,317 $ - Resources(Inflows): Intergovernmental - - 200,111 200,111 Use of money and property 37,480 7,340 3,717 (3,623) Amounts Available for Appropriation 264,797 234,657 431,145 196,488 Charges to Appropriation(Outflow): Community development - 203,730 201,056 2,674 Total Charges to Appropriations - 203,730 201,056 2,674 Budgetary Fund Balance, June 30(Budgetary Basis) $ 264,797 $ 30,927 230,089 $ 199,162 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 230,089 147 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $3,863,127 $ 3,863,127 $ 3,863,127 $ - Resources(Inflows): Charges for services 1,064,060 1,041,850 1,011,563 (30,287) Use of money and property 38,550 60,880 46,818 (14,062) Amounts Available for Appropriation 4,965,737 4,965,857 4,921,508 (44,349) Charges to Appropriation(Outflow): Public works 1,029,190 1,068,800 937,460 131,340 Capital outlay 2,325,000 2,477,000 2,448,642 28,358 Total Charges to Appropriations 3,354,190 3,545,800 3,386,102 159,698 Budgetary Fund Balance,June 30(Budgetary Basis) $1,611,547 $ 1,420,057 1,535,406 $ 115,349 Encumbrances 2,299,713 Budgetary Fund Balance,June 30(GAAP Basis) $ 3,835,119 148 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PROPOSITION 42-TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $2,485,121 $ 2,485,121 $ 2,485,121 $ - Resources(Inflows): Use of money and property 27,490 42,440 35,450 (6,990) Amounts Available for Appropriation 2,512,611 2,527,561 2,520,571 (6,990) Charges to Appropriation(Outflow): Public works 509,284 509,284 509,284 - Capital outlay 170,716 183,106 168,707 14,399 Total Charges to Appropriations 680,000 692,390 677,991 14,399 Budgetary Fund Balance,June 30(Budgetary Basis) $1,832,611 $ 1,835,171 1,842,580 $ 7,409 Encumbrances 168,707 Budgetary Fund Balance,June 30(GAAP Basis) $ 2,011,287 149 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 2,448 $ 2,448 $ 2,448 $ - Resources(Inflows): Intergovernmental - 40,000 13,690 (26,310) Use of money and property - 2,340 1,752 (588) Amounts Available for Appropriation 2,448 44,788 17,890 (26,898) Charges to Appropriation(Outflow): Public safety - 52,160 11,346 40,814 Total Charges to Appropriations - 52,160 11,346 40,814 Budgetary Fund Balance, June 30(Budgetary Basis) $ 2,448 $ (7,372) 6,544 $ 13,916 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 6,544 150 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) SENIOR TRANSPORTATION SERVICE YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,624 $ 6,624 $ 6,624 $ - Resources(Inflows): Use of money and property - - (342) (342) Amounts Available for Appropriation 6,624 6,624 6,282 (342) Charges to Appropriation(Outflow): Parks and recreation - 6,220 6,218 2 Total Charges to Appropriations - 6,220 6,218 2 Budgetary Fund Balance, June 30(Budgetary Basis) $ 6,624 $ 404 64 $ (340) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 64 151 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) HOMELAND SECURITY GRANT 2005 YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (25,410) $ (25,410) $ (25,410) $ - Intergovernmental - 57,350 - (57,350) Amounts Available for Appropriation (25,410) 31,940 (25,410) (57,350) Charges to Appropriation (Outflow): Public safety - 29,660 21,332 8,328 Capital outlay - 27,690 28,199 (509) Total Charges to Appropriations - 57,350 49,531 7,819 Budgetary Fund Balance, June 30(Budgetary Basis) $ (25,410) $ (25,410) (74,941) $ (49,531) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (74,941) 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 82-1 YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12,348 $ 12,348 $ 12,348 $ - Resources(Inflows): Use of money and property 210 210 159 (51) Amounts Available for Appropriation 12,558 12,558 12,507 (51) Budgetary Fund Balance, June 30(Budgetary Basis) $ 12,558 $ 12,558 12,507 $ (51) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 12,507 153 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 84-1 YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,053,722 $ 1,053,722 $ 1,053,722 $ - Resources(Inflows): Use of money and property 18,460 18,170 13,606 (4,564) Amounts Available for Appropriation 1,072,182 1,071,892 1,067,328 (4,564) Budgetary Fund Balance,June 30(Budgetary Basis) $1,072,182 $ 1,071,892 1,067,328 $ (4,564) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,067,328 154 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-01 SOUTH ETIWANDA YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 92,009 $ 92,009 $ 92,009 $ - Resources(Inflows): Use of money and property 20 10 9 (1) Amounts Available for Appropriation 92,029 92,019 92,018 (1) Budgetary Fund Balance, June 30(Budgetary Basis) $ 92,029 $ 92,019 92,018 $ (1) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 92,018 155 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-02 RANCHO CUCAMONGA CORPORATE PARK YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 581,333 $ 581,333 $ 581,333 $ - Resources(Inflows): Use of money and property 140 60 58 (2) Amounts Available for Appropriation 581,473 581,393 581,391 (2) Budgetary Fund Balance, June 30(Budgetary Basis) $ 581,473 $ 581,393 581,391 $ (2) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 581,391 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-03 RANCHO SUMMIT YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 163,201 $ 163,201 $ 163,201 $ - Resources(Inflows): Use of money and property 1,460 1,190 (126) (1,316) Amounts Available for Appropriation 164,661 164,391 163,075 (1,316) Charges to Appropriation (Outflow): General government - - 8 (8) Total Charges to Appropriations - - 8 (8) Budgetary Fund Balance,June 30(Budgetary Basis) $ 164,661 $ 164,391 163,067 $ (1,324) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 163,067 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2001-01 YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $(2,077,534) $ (2,077,534) $(2,077,534) $ - Resources(Inflows): Use of money and property 8,150 8,020 6,002 (2,018) Amounts Available for Appropriation (2,069,384) (2,069,514) (2,071,532) (2,018) Budgetary Fund Balance,June 30(Budgetary Basis) $(2,069,384) $ (2,069,514) (2,071,532) $ (2,018) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $(2,071,532) 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2003-01 PROJECT FUND YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $(1,244,316) $ (1,244,316) $(1,244,316) $ - Resources(Inflows): Use of money and property 110 100 (22) (122) Amounts Available for Appropriation (1,244,206) (1,244,216) (1,244,338) (122) Budgetary Fund Balance,June 30(Budgetary Basis) $(1,244,206) $ (1,244,216) (1,244,338) $ (122) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $(1,244,338) 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC LIBRARY BOND ACT-2000 YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $(1,498,042) $ (1,498,042) $(1,498,042) $ - Resources(Inflows): Intergovernmental - - 647,853 647,853 Transfers in - 77,580 77,580 - Amounts Available for Appropriation (1,498,042) (1,420,462) (772,609) 647,853 Budgetary Fund Balance,June 30(Budgetary Basis) $(1,498,042) $ (1,420,462) (772,609) $ 647,853 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ (772,609) 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2004-01 RANCHO ETIWANDA YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,093,596 $ 1,093,596 $ 1,093,596 $ - Resources(Inflows): Use of money and property 390 200 168 (32) Amounts Available for Appropriation 1,093,986 1,093,796 1,093,764 (32) Charges to Appropriation (Outflow): General government 1,058,470 100,740 105,741 (5,001) Total Charges to Appropriations 1,058,470 100,740 105,741 (5,001) Budgetary Fund Balance,June 30(Budgetary Basis) $ 35,516 $ 993,056 988,023 $ (5,033) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 988,023 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2003-01 CULTURAL CENTER YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 186,056 $ 186,056 $ 186,056 $ - Resources(Inflows): Use of money and property 150 130 32 (98) Amounts Available for Appropriation 186,206 186,186 186,088 (98) Charges to Appropriation(Outflow): Capital outlay 175,000 175,000 6,974 168,026 Total Charges to Appropriations 175,000 175,000 6,974 168,026 Budgetary Fund Balance,June 30(Budgetary Basis) $ 11,206 $ 11,186 179,114 $ 167,928 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 179,114 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-01 VINTNER'S GROVE YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 971,049 $ 971,049 $ 971,049 $ - Resources(Inflows): Use of money and property 860 330 88 (242) Amounts Available for Appropriation 971,909 971,379 971,137 (242) Charges to Appropriation (Outflow): General government 800,060 362,700 362,695 5 Total Charges to Appropriations 800,060 362,700 362,695 5 Budgetary Fund Balance,June 30(Budgetary Basis) $ 171,849 $ 608,679 608,442 $ (237) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 608,442 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 7,675 $ 7,675 $ 7,675 $ - Resources(Inflows): Use of money and property 340 220 73 (147) Amounts Available for Appropriation 8,015 7,895 7,748 (147) Budgetary Fund Balance, June 30(Budgetary Basis) $ 8,015 $ 7,895 7,748 $ (147) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 7,748 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) REDEVELOPMENT AGENCY-CAPITAL PROJECT FUND YEAR ENDED JUNE 30, 2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $289,816,959 $289,816,959 $289,816,959 $ - Resources(Inflows): Taxes 19,020,930 19,020,930 17,560,825 (1,460,105) Intergovernmental - - 79,597 79,597 Use of money and property 5,166,230 5,166,230 4,887,710 (278,520) Miscellaneous 58,000 58,000 17,814 (40,186) Transfers in 35,810 35,810 7,535,810 7,500,000 Amounts Available for Appropriation 314,097,929 314,097,929 319,898,715 5,800,786 Charges to Appropriation (Outflow): General government 4,592,020 4,796,180 3,870,850 925,330 Community development 3,856,000 5,640,840 830,366 4,810,474 Capital outlay 43,577,570 32,031,947 26,352,262 5,679,685 Debt service: Principal retirement 3,021,810 3,021,810 3,021,803 7 Interest and fiscal charges 9,194,120 9,194,120 16,015,576 (6,821,456) Transfers out - 77,580 77,580 - Total Charges to Appropriations 64,241,520 54,762,477 50,168,437 4,594,040 Budgetary Fund Balance, June 30(Budgetary Basis) $249,856,409 $259,335,452 269,730,278 $ 10,394,826 Encumbrances 15,613,037 Budgetary Fund Balance,June 30(GAAP Basis) $285,343,315 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) REDEVELOPMENT AGENCY-DEBT SERVICE FUND YEAR ENDED JUNE 30,2011 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 142,263,354 $ 142,263,354 $142,263,354 $ - Resources (Inflows): Taxes 76,083,690 76,083,690 70,243,299 (5,840,391) Use of money and property 2,458,140 2,458,140 565,180 (1,892,960) Other debts issued - - 665,302 665,302 Amounts Available for Appropriation 220,805,184 220,805,184 213,737,135 (7,068,049) Charges to Appropriation (Outflow): General government 32,662,920 28,682,529 26,636,796 2,045,733 Capital outlay 35,039,250 27,612,230 17,618,889 9,993,341 Debt service: Principal retirement 14,456,850 14,456,850 7,479,887 6,976,963 Interest and fiscal charges 12,566,960 12,567,440 12,632,271 (64,831) Transfers out 9,475,219 9,475,689 9,468,060 7,629 Total Charges to Appropriations 104,201,199 92,794,738 73,835,903 18,958,835 Budgetary Fund Balance,June 30(Budgetary Basis) $ 116,603,985 $ 128,010,446 139,901,232 $ 11,890,786 Encumbrances 8,788,572 Budgetary Fund Balance,June 30(GAAP Basis) $148,689,804 166 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. 167 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2011 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 8,141,357 $ 2,349,131 $ 10,490,488 Receivables: Accrued interest 4,850 1,401 6,251 Total Current Assets 8,146,207 2,350,532 10,496,739 Noncurrent: Capital assets-net of accumulated depreciation 3,361,458 896,306 4,257,764 Total Noncurrent Assets 3,361,458 896,306 4,257,764 Total Assets $ 11,507,665 $ 3,246,838 $ 14,754,503 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 95,929 $ 31,930 $ 127,859 Total Current Liabilities 95,929 31,930 127,859 Total Liabilities 95,929 31,930 127,859 Net Assets: Invested in capital assets, net of related debt 3,361,458 896,306 4,257,764 Unrestricted 8,050,278 2,318,602 10,368,880 Total Net Assets 11,411,736 3,214,908 14,626,644 Total Liabilities and Net Assets $ 11,507,665 $ 3,246,838 $ 14,754,503 168 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2011 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 590 $ 590 Miscellaneous 10,216 - 10,216 Total Operating Revenues 10,216 590 10,806 Operating Expenses: Maintenance and operations 363,677 222,432 586,109 Depreciation 1,382,699 398,863 1,781,562 Total Operating Expenses 1,746,376 621,295 2,367,671 Operating Income(Loss) (1,736,160) (620,705) (2,356,865) Nonoperating Revenues(Expenses): Interest revenue 97,669 24,498 122,167 Gain (loss)on disposal of capital assets (17,437) - (17,437) Total Nonoperating Revenues(Expenses) 80,232 24,498 104,730 Income(Loss)Before Transfers (1,655,928) (596,207) (2,252,135) Transfers out (24,731) - (24,731) Changes in Net Assets (1,680,659) (596,207) (2,276,866) Net Assets: Beginning of Year 13,092,395 3,811,115 16,903,510 End of Fiscal Year $ 11,411,736 $ 3,214,908 $ 14,626,644 169 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2011 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from customers and users $ 10,216 $ 590 $ 10,806 Cash paid to suppliers for goods and services (356,848) (422,210) (779,058) Net Cash Provided (Used) by Operating Activities (346,632) (421,620) (768,252) Cash Flows from Non-Capital Financing Activities: Cash transfers out (24,731) - (24,731) Net Cash Provided(Used) by Non-Capital Financing Activities (24,731) - (24,731) Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (741,573) (395,344) (1,136,917) Net Cash Provided(Used) by Capital and Related Financing Activities (741,573) (395,344) (1,136,917) Cash Flows from Investing Activities: Interest received 102,416 26,401 128,817 Net Cash Provided(Used) by Investing Activities 102,416 26,401 128,817 Net Increase(Decrease) in Cash and Cash Equivalents (1,010,520) (790,563) (1,801,083) Cash and Cash Equivalents at Beginning of Year 9,151,877 3,139,694 12,291,571 Cash and Cash Equivalents at End of Year $ 8,141,357 $ 2,349,131 $ 10,490,488 Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (1,736,160) $ (620,705) $ (2,356,865) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 1,382,699 398,863 1,781,562 Increase(decrease)in accounts payable 6,829 (199,778) (192,949) Total Adjustments 1,389,528 199,085 1,588,613 Net Cash Provided (Used) by Operating Activities $ (346,632) $ (421,620) $ (768,252) Non-Cash Investing, Capital, and Financing Activities: During fiscal year 2010-2011,there was no noncash investing, capital or financing activities. 170 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. CommunitV Facilities District 84-1 Fund - This fund is used for the CFD 84-1 bond redemption process. The Bond Redemption fund is a short-term rotation fund, generally used to consolidate the collections received from the property owners upon payment of their annual assessments at the time of payment of their tax bills, along with contributions from the Redevelopment Agency. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payments on the bonds. Assessment District 84-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 85-PD Fund - Established to account for assessments received under the Refunding Act of 1984 for 1915 Improvement Act Bonds and Landscape/Lighting Act of 1972. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 88-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 91-2 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 93-3 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Assessment District 99-1 Fund - Established to account for assessments received under the Improvement Bond Act of 1915. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000-01 South Etiwanda Fund — Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000-02 Rancho Cucamonga Corporate Park Fund— Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. 171 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. CommunitV 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. CommunitV 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. Assessment District No. 82-2 - 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. 172 THIS PAGE INTENTIONALLY LEFT BLANK 173 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 Special Assessment Assessment Deposits District 82-1 CFD 84-1 District 84-2 Assets: Cash and investments $ 7,469,062 $ 46 $ - $ 46 Receivables: Accounts 1,500 - - - Taxes 34,431 - - - Interest - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 7,504,993 $ 46 $ - $ 46 Liabilities: Accounts payable $ 6,629 $ - $ - $ - Accrued liabilities - - - - Deposits payable 7,498,364 - - - Payable to trustee - 46 - 46 Due to external parties/other agencies - - - - Total Liabilities $ 7,504,993 $ 46 $ - $ 46 174 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 (Continued) Assessment Assessment District 85-PD CFD 88-2 District 91-2 CFD 93-3 Assets: Cash and investments $ 1,834,117 $ 4,813,429 $ 169,630 $ 472,020 Receivables: Accounts - - - - Taxes 10,479 6,078 729 - Interest 1,113 1,910 98 280 Restricted assets: Cash and investments with fiscal agents - 164,867 - 267,481 Total Assets $ 1,845,709 $ 4,986,284 $ 170,457 $ 739,781 Liabilities: Accounts payable $ 37,316 $ - $ - $ - Accrued liabilities 21,033 - 853 - Deposits payable - - - - Payable to trustee 1,787,360 4,986,284 169,604 739,781 Due to external parties/other agencies - - - - Total Liabilities $ 1,845,709 $ 4,986,284 $ 170,457 $ 739,781 175 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 CFD 2000-02 CFD 2000-01 Rancho AD 93-1 Masi Assessment South Cucamonga Commerce District 99-1 Etiwanda Corporate Park Center Assets: Cash and investments $ 703,158 $ 326,043 $ 483,824 $ 461,625 Receivables: Accounts - - - - Taxes - 988 296 - Interest 418 194 288 274 Restricted assets: Cash and investments with fiscal agents 1,750,775 111,425 680,348 242,510 Total Assets $ 2,454,351 $ 438,650 $ 1,164,756 $ 704,409 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 2,454,351 438,650 1,164,756 704,409 Due to external parties/other agencies - - - - Total Liabilities $ 2,454,351 $ 438,650 $ 1,164,756 $ 704,409 176 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 (Continued) CFD 2001-01 CFD 2001-01 CFD 2003-01 CFD 2003-01 Series A Series B Series A Series B Assets: Cash and investments $ 1,951,259 $ 46,192 $ 1,065,453 $ 163,787 Receivables: Accounts - - - - Taxes 13,706 - 627 - Interest 2 - 633 97 Restricted assets: Cash and investments with fiscal agents 3,217,220 110,884 1,464,561 292,939 Total Assets $ 5,182,187 $ 157,076 $ 2,531,274 $ 456,823 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 5,182,187 157,076 2,531,274 456,823 Due to external parties/other agencies - - - - Total Liabilities $ 5,182,187 $ 157,076 $ 2,531,274 $ 456,823 177 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 CFD 2000-03 CFD 2000-03 Rancho Rancho CFD 2000-03 Summit Summit Park Redemption Reserve CFD 2004-01 Maintenance Assets: Cash and investments $ 926,936 $ - $ 2,481,656 $ 859,458 Receivables: Accounts - - - - Taxes 8,582 - 13,441 3,783 Interest 550 - 1,417 517 Restricted assets: Cash and investments with fiscal agents 51,219 666,762 2,856,627 - Total Assets $ 987,287 $ 666,762 $ 5,353,141 $ 863,758 Liabilities: Accounts payable $ - $ - $ 2,551 $ 5,891 Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 987,287 666,762 5,350,590 857,867 Due to external parties/other agencies - - - - Total Liabilities $ 987,287 $ 666,762 $ 5,353,141 $ 863,758 178 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 (Continued) Employee CFD 2006-01 CFD 2006-02 Deduction Assessment Redemption Redemption Account District 82-2 Assets: Cash and investments $ 449,999 $ 234,197 $ 60,121 $ 5 Receivables: Accounts - - - - Taxes 1,844 - - - Interest 267 139 - - Restricted assets: Cash and investments with fiscal agents 379,650 197,782 - - Total Assets $ 831,760 $ 432,118 $ 60,121 $ 5 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - 129 - Deposits payable - - - - Payable to trustee 831,760 432,118 - 5 Due to external parties/other agencies - - 59,992 - Total Liabilities $ 831,760 $ 432,118 $ 60,121 $ 5 179 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2011 Totals Assets: Cash and investments $ 24,972,063 Receivables: Accounts 1,500 Taxes 94,984 Interest 8,197 Restricted assets: Cash and investments with fiscal agents 12,455,050 Total Assets $ 37,531,794 Liabilities: Accounts payable $ 52,387 Accrued liabilities 22,015 Deposits payable 7,498,364 Payable to trustee 29,899,036 Due to external parties/other agencies 59,992 Total Liabilities $ 37,531,794 180 THIS PAGE INTENTIONALLY LEFT BLANK 181 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 Balance Balance 7/1/2010 Additions Deductions 6/30/2011 Assessment District 85-PD Assets: Cash and investments $ 2,118,441 $ 1,246,517 $ 1,530,841 $ 1,834,117 Receivables: Accounts 1,322 - 1,322 - Taxes 14,114 10,479 14,114 10,479 Accrued interest 2,213 1,113 2,213 1,113 Total Assets $ 2,136,090 $ 1,258,109 $ 1,548,490 $ 1,845,709 Liabilities: Accounts payable $ 61,775 $ 434,456 $ 458,915 $ 37,316 Accrued liabilities 35,298 24,695 38,960 21,033 Payable to trustee 2,039,017 798,958 1,050,615 1,787,360 Total Liabilities $ 2,136,090 $ 1,258,109 $ 1,548,490 $ 1,845,709 CFD 88-2 Assets: Cash and investments $ 4,709,294 $ 377,723 $ 273,588 $ 4,813,429 Receivables: Taxes 4,653 6,078 4,653 6,078 Accrued interest 3,257 1,904 3,251 1,910 Restricted assets: Cash and investments with fiscal agents 96,732 68,913 778 164,867 Total Assets $ 4,813,936 $ 454,618 $ 282,270 $ 4,986,284 Liabilities: Payable to trustee $ 4,813,936 $ 454,618 $ 282,270 $ 4,986,284 Total Liabilities $ 4,813,936 $ 454,618 $ 282,270 $ 4,986,284 Assessment District 91-2 Assets: Cash and investments $ 196,144 $ 44,171 $ 70,685 $ 169,630 Receivables: Taxes 601 729 601 729 Accrued interest 208 98 208 98 Total Assets $ 196,953 $ 44,998 $ 71,494 $ 170,457 Liabilities: Accrued liabilities $ 2,367 $ 853 $ 2,367 $ 853 Payable to trustee 194,586 44,145 69,127 169,604 Total Liabilities $ 196,953 $ 44,998 $ 71,494 $ 170,457 182 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 (Continued) Balance Balance 7/1/2010 Additions Deductions 6/30/2011 CFD 93-3 Assets: Cash and investments $ 382,554 $ 432,255 $ 342,789 $ 472,020 Receivables: Accrued interest 400 280 400 280 Restricted assets: Cash and investments with fiscal agents 159,012 110,925 2,456 267,481 Total Assets $ 541,966 $ 543,460 $ 345,645 $ 739,781 Liabilities: Payable to trustee $ 541,966 $ 543,460 $ 345,645 $ 739,781 Total Liabilities $ 541,966 $ 543,460 $ 345,645 $ 739,781 Assessment District 99-1 Assets: Cash and investments $ 666,692 $ 341,662 $ 305,196 $ 703,158 Receivables: Accrued interest 730 418 730 418 Restricted assets: Cash and investments with fiscal agents 2,077,685 39,254 366,164 1,750,775 Total Assets 2,745,107 381,334 672,090 2,454,351 Liabilities: Payable to trustee $ 2,745,107 $ 381,334 $ 672,090 $ 2,454,351 Total Liabilities $ 2,745,107 $ 381,334 $ 672,090 $ 2,454,351 CFD 2000-01 South Etiwanda Assets: Cash and investments $ 320,226 $ 138,072 $ 132,255 $ 326,043 Receivables: Taxes 2,066 988 2,066 988 Accrued interest 335 194 335 194 Restricted assets: Cash and investments with fiscal agents 111,425 - - 111,425 Total Assets $ 434,052 $ 139,254 $ 134,656 $ 438,650 Liabilities: Payable to trustee $ 434,052 $ 139,254 $ 134,656 $ 438,650 Total Liabilities $ 434,052 $ 139,254 $ 134,656 $ 438,650 183 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 Balance Balance 7/1/2010 Additions Deductions 6/30/2011 CFD 2000-02 Rancho Cucamonga Corporate Park Assets: Cash and investments $ 497,588 $ 577,984 $ 591,748 $ 483,824 Receivables: Taxes - 296 - 296 Accrued interest 544 288 544 288 Restricted assets: Cash and investments with fiscal agents 680,348 - - 680,348 Total Assets $ 1,178,480 $ 578,568 $ 592,292 $ 1,164,756 Liabilities: Payable to trustee $ 1,178,480 $ 578,568 $ 592,292 $ 1,164,756 Total Liabilities $ 1,178,480 $ 578,568 $ 592,292 $ 1,164,756 AD 93-1 Masi Commerce Center Assets: Cash and investments $ 456,715 $ 255,858 $ 250,948 $ 461,625 Receivables: Accrued interest 478 274 478 274 Restricted assets: Cash and investments with fiscal agents 242,510 - - 242,510 Total Assets $ 699,703 $ 256,132 $ 251,426 $ 704,409 Liabilities: Payable to trustee $ 699,703 $ 256,132 $ 251,426 $ 704,409 Total Liabilities $ 699,703 $ 256,132 $ 251,426 $ 704,409 CFD 2001-01 Series A Assets: Cash and investments $ 1,706,872 $ 1,828,982 $ 1,584,595 $ 1,951,259 Receivables: Taxes 45,296 13,706 45,296 13,706 Accrued interest 3 2 3 2 Restricted assets: Cash and investments with fiscal agents 3,216,957 50,830 50,567 3,217,220 Total Assets $ 4,969,128 $ 1,893,520 $ 1,680,461 $ 5,182,187 Liabilities: Payable to trustee $ 4,969,128 $ 1,893,520 $ 1,680,461 $ 5,182,187 Total Liabilities $ 4,969,128 $ 1,893,520 $ 1,680,461 $ 5,182,187 184 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 (Continued) Balance Balance 7/1/2010 Additions Deductions 6/30/2011 CFD 2001-01 Series B Assets: Cash and investments $ 66,621 $ 77,699 $ 98,128 $ 46,192 Restricted assets: Cash and investments with fiscal agents 100,881 10,003 - 110,884 Total Assets $ 167,502 $ 87,702 $ 98,128 $ 157,076 Liabilities: Payable to trustee $ 167,502 $ 87,702 $ 98,128 $ 157,076 Total Liabilities $ 167,502 $ 87,702 $ 98,128 $ 157,076 CFD 2003-01 Series A Assets: Cash and investments $ 1,048,007 $ 1,079,803 $ 1,062,357 $ 1,065,453 Receivables: Taxes 800 627 800 627 Accrued interest 1,097 633 1,097 633 Restricted assets: Cash and investments with fiscal agents 1,464,561 - - 1,464,561 Total Assets $ 2,514,465 $ 1,081,063 $ 1,064,254 $ 2,531,274 Liabilities: Payable to trustee $ 2,514,465 $ 1,081,063 $ 1,064,254 $ 2,531,274 Total Liabilities $ 2,514,465 $ 1,081,063 $ 1,064,254 $ 2,531,274 CFD 2003-01 Series B Assets: Cash and investments $ 159,417 $ 208,325 $ 203,955 $ 163,787 Receivables: Accrued interest 167 97 167 97 Restricted assets: Cash and investments with fiscal agents 292,902 37 - 292,939 Total Assets $ 452,486 $ 208,459 $ 204,122 $ 456,823 Liabilities: Payable to trustee $ 452,486 $ 208,459 $ 204,122 $ 456,823 Total Liabilities $ 452,486 $ 208,459 $ 204,122 $ 456,823 CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments $ 878,736 $ 775,082 $ 726,882 $ 926,936 Receivables: Taxes 7,776 8,582 7,776 8,582 Accrued interest 919 550 919 550 Restricted assets: Cash and investments with fiscal agents - 51,219 - 51,219 Total Assets $ 887,431 $ 835,433 $ 735,577 $ 987,287 Liabilities: Payable to trustee $ 887,431 $ 835,433 $ 735,577 $ 987,287 Total Liabilities $ 887,431 $ 835,433 $ 735,577 $ 987,287 185 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 Balance Balance 7/1/2010 Additions Deductions 6/30/2011 CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 717,891 $ 36 $ 51,165 $ 666,762 Total Assets $ 717,891 $ 36 $ 51,165 $ 666,762 Liabilities: Payable to trustee $ 717,891 $ 36 $ 51,165 $ 666,762 Total Liabilities $ 717,891 $ 36 $ 51,165 $ 666,762 CFD 2004-01 Assets: Cash and investments $ 2,613,241 $ 4,229,403 $ 4,360,988 $ 2,481,656 Receivables: Taxes 39,087 13,441 39,087 13,441 Accrued interest 2,588 1,417 2,588 1,417 Restricted assets: Cash and investments with fiscal agents 2,982,821 16,954 143,148 2,856,627 Total Assets $ 5,637,737 $ 4,261,215 $ 4,545,811 $ 5,353,141 Liabilities: Accounts payable $ 1,813 $ 15,811 $ 15,073 $ 2,551 Payable to trustee 5,635,924 4,245,404 4,530,738 5,350,590 Total Liabilities $ 5,637,737 $ 4,261,215 $ 4,545,811 $ 5,353,141 CFD 2000-03 Park Maintenance Assets: Cash and investments $ 830,856 $ 819,630 $ 791,028 $ 859,458 Receivables: Taxes 3,643 3,783 3,643 3,783 Accrued interest 876 517 876 517 Total Assets $ 835,375 $ 823,930 $ 795,547 $ 863,758 Liabilities: Accounts payable $ 5,720 $ 81,639 $ 81,468 $ 5,891 Payable to trustee 829,655 742,291 714,079 857,867 Total Liabilities $ 835,375 $ 823,930 $ 795,547 $ 863,758 CFD 2006-01 Redemption Assets: Cash and investments $ 392,741 $ 466,076 $ 408,818 $ 449,999 Receivables: Taxes 11,215 1,844 11,215 1,844 Accrued interest 411 267 411 267 Restricted assets: Cash and investments with fiscal agents 381,212 1,563 3,125 379,650 Total Assets $ 785,579 $ 469,750 $ 423,569 $ 831,760 Liabilities: Payable to trustee $ 785,579 $ 469,750 $ 423,569 $ 831,760 Total Liabilities $ 785,579 $ 469,750 $ 423,569 $ 831,760 186 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 (Continued) Balance Balance 7/1/2010 Additions Deductions 6/30/2011 CFD 2006-02 Redemption Assets: Cash and investments $ 204,958 $ 254,553 $ 225,314 $ 234,197 Receivables: Taxes 3,877 - 3,877 - Accrued interest 215 139 215 139 Restricted assets: Cash and investments with fiscal agents 197,782 - - 197,782 Total Assets $ 406,832 $ 254,692 $ 229,406 $ 432,118 Liabilities: Payable to trustee $ 406,832 $ 254,692 $ 229,406 $ 432,118 Total Liabilities $ 406,832 $ 254,692 $ 229,406 $ 432,118 Employee Deduction Account Assets: Cash and investments $ 22,609 $ 352,544 $ 315,032 $ 60,121 Receivables: Accounts 3,051 - 3,051 - Total Assets $ 25,660 $ 352,544 $ 318,083 $ 60,121 Liabilities: Accounts payable $ 487 $ 3,020 $ 3,507 $ - Accrued liabilities - 130,620 130,491 129 Due to external parties/outside agencies 25,173 59,992 25,173 59,992 Total Liabilities $ 25,660 $ 193,632 $ 159,171 $ 60,121 Assessment District 82-2 Assets: Cash and investments $ 5 $ - $ - $ 5 Total Assets $ 5 $ - $ - $ 5 Liabilities: Payable to trustee $ 5 $ - $ - $ 5 Total Liabilities $ 5 $ - $ - $ 5 187 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2011 Balance Balance 7/1/2010 Additions Deductions 6/30/2011 Totals-All Agency Funds Assets: Cash and investments $ 24,854,233 $ 15,096,728 $ 14,978,898 $ 24,972,063 Receivables: Accounts 46,186 500 45,186 1,500 Taxes 170,524 94,984 170,524 94,984 Accrued interest 14,441 8,191 14,435 8,197 Restricted assets: Cash and investments with fiscal agents 12,722,719 349,734 617,403 12,455,050 Total Assets $ 37,808,103 $ 15,550,137 $ 15,826,446 $ 37,531,794 Liabilities: Accounts payable $ 71,721 $ 1,485,857 $ 1,505,191 $ 52,387 Accrued liabilities 37,665 156,168 171,818 22,015 Deposits payable 7,619,360 674,388 795,384 7,498,364 Payable to trustee 30,013,838 13,014,820 13,129,622 29,899,036 Due to external parties/outside agencies 65,519 59,992 65,519 59,992 Total Liabilities $ 37,808,103 $ 15,391,225 $ 15,667,534 $ 37,531,794 188 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2011 Statistical Section Certain schedules recommended for inclusion in Comprehensive Annual Financial Reports of Municipalities by the Government Finance Officers Association have been omitted from this report. The omission of such schedules was made only after careful consideration of the merits of each recommended schedule by City management. 189 This part of the City of Rancho Cucamonga's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health. Contents Page(s) Financial Trends These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. 191 - 195 Revenue Capacity These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. 196 -200 Debt Capacity These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. 202 -208 Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments. 209 -210 Operating Information These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs. 211 -213 Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 190 O O M ('4 O) ' M N O LO Cl) 7 CO N I� O M N (O O cD (D V N 00 M cD M M Cl) Il- O N CO (14 O V r- r- O) O 7 N Cl) O O) O O Cl) N -It O O (O M O O) N M 00 O N I- N O LO 00 00 LO 00 O) V M � � M M r M N LO N LO EA LO LO I- r- O ' LO LO 00 M I.- U) co (D O N N I- Lf) LO co M LO M 00 (O 7 (O LO O N V O M t (D O co CO CO O LO LO O O co I-- V N LO O O) (O 00 Ln O N M O (D M N co h co O Il- N O) (D I- co m O O O O N N N O O N M co M (D (f) O O (O ' M O co O O) It co -It LO Il- M (O LO V rn v (D o M v M rn LO co co o v v LO of - co(o m O 7 6) N co co M M O M co O O O O O O O O O) - N co h r- M M N N M O r- 0000 M co (O N co w h LO 00 co Ln 7 00 V O N (O N CD co N co LO Lf) � N 00 co V N O O N O) co Ih M N c0 Ih LO co (0 (MOM O� M LMO (O LO rl- 00 M � O N 0 00 m 00 � (O Ln M N O) L() Lf) O (D co N M r- O N N N O co � (r0 NO LO U' N M h N M � O M co O LO O I.- O Ln r LO 00 O O O (D h Il- O O 00 Il co co G (O O M O 00 O (O LO Lr O O (O 0) O 7 co O N 00 00 O) N_ N U') O (p CO LO I- N NU') I-- O I- N 0) M N O Ln O Lf7 O) N (D LO " Q } N W N � co N M O N OM (O U N I co M I M N lL (f) EA EFT K3 (f} EA O Z ) CO N O LO LO 00 (D O M O (D V i 0 C C � I� LO I- M O M r O 0 0) i O} U oM O O O O) O Q O co M Q W L OO C\l CY) O O 0 M EU 0 ) (D .� 0 Co co N M (O (O O M V Cl) 6) LO M m U U N LO 00 Cl) Cl) N LO N O > O O = Q N (f} EA EA 64 (f} EA U U) o 'N Z z m (O O) (O N 00 co M Cl) N O M Q co Z cD V N O O O O cD N N O 2' N N (O M (D M (O Cl) I- 7 N 7 O LL Q N i O M M M (O LO O M V M d N O N 0 a) f-- LO O M LO 00 LO O N M (D Z J M M �(9 � LO co V (O O) O U N V V O cviO M LO C) 04 O) 3 7 a) _ a � O 0) M V I- Lf7 M M V O M (O O O O O L M Mll O) (O N V O Il- N M M V M co O co O N M O) co M � W M (D � (MD O 0 CO r- (D N N M It V N co U h EA EA ER EA EA EA CD N O) N O LO O) CO V (D LO C`') Cl) 00 LO co V V l O 7 r- M (O O) "t O O W N " d. co m (O O LO M (0 O cO OO LO co M co to I` M M 00 LO 00 (D m 0 O N "t oc M O (O M N C LO rl- M) 11� M N N M M NNJ- 11� co LO (� 61) 6 a c m N N E m (6 O N N C C co � U) d O N O a) 0) C U) w > N C U in Co 10 U 3 o 0 a�i m °� m a) m (D c U c c � E a � � E a ,c 2 -6 ( N C c � � (D 0) CO o c T o �' o .� m > � m o S z m 27 c o o m c O U) > y � O '� m 'y O O •L d o d `c 0) a) > c aa)i c m > c a) D U > s � � m N � � m c s � � m m 0 191 O O 0) ' (o Lo (o Il O V V V 0) M ' W 0) 0) V OD O O LO N Co O I— 1�-LO LP) 7 7 O M O N (O OD 00 r 7 1 0 Ci C , LO cv V 00 M � � M 00 N M V 0) CO OD OD co Cl) LO NI-- LO C)O LO C) O LO OD 0) LO Co LO N 00 O LC) (o (0 N c 00 O N O (O Cl) V O I- O O Cl) I- I� 0 0 O 0) N V V Ih — N M V Co 0 N 7 0 N M N 00 co M (O LO M LO LO 0 C NC') N M N I- N r` N N d1 N N OD I-- (O N N V O 't O ' M O O ml co O I-- r I C)I co 't O ' N 0 7 (D 0) LO 00 C) N N 00 f� (O O (0 0) 00 N 00 O O O 00 CO O M N O N O N CD CO M C) 00 N (D M c V CO O 0 O N N 0 cO W 0) 1. h cc LO C'o O O O LO d) OD LO O 00 N LO V I� Mr- Co 0 0 I` O N N CD O LO V CO Co O O M O O I-- 7 "t I-- "T N V 0) N N CO N V (O V 00 O I- (O 't Cl) N V V Co LO LO M OD M c'M L!)h M N CO L() N O 0 N 00 0) CO N M M N LO LO O N ' O 00 (o O I� I-- 0) col col LO (O OD ' (O O � co LO N I� O 0 Cl) 0 0 0 C)O N O '�t LP) 0 LO I- LO 00 (D C') N LO O Co N Co l3i N M M O N (O (O Q) O N f� C'41 VI V w06 I— r (D LO m 0 � r- 0 � (O 0) m 00 ; LO r O 00 (M O LO CD N O V I- N V 00 N 0 Co M I-- � O O � -Itm 0 N O (O O O O 00 00 M I� c V 7 00 M — LO O N M LO -It CO I� N V d2 I: Ln V O 00 N V (M N N 00 0)OD N Ch V (O Cl) M N V l!) 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M V 00 00 Lo N m 00 M 00 M (o V 00 O � 127 (o a) mr- LO M h m M (O m O O n � n LO O LO m 0 r r O (O cM eM m r m p CD m M N M Ln M LO � LO U-) N U-) CD0 (D O 0) 0 � 00 LO n O 00 m U r P- N Cl n CD O (o M N N 7 1- m 0 7 00 N 7 (o m (o (0 0 0 CO n r y r W N O r W N M M m Ln C V C r V W LO (o M O � O (o r m m y N ^ M n (O r N LO N LO N N N h N a0 N O N N Lr) 0 0 LO r r r N r r r r N C ` a> V3 V3 x @ O O y E m o m 0 m o (0 0 CL 3 U ° O h a> -0 O a a a m G U _N d N O a) y cu 0 y a 0N O «� O y N m 2 U p0 t ' U N N U O O N O E E a0 O U - of m >v a) N (6 a) 0) C y L y °) O m N U) y n y 4 U E ° E ° °_ °- o m > w o c y m E (o) D a c y c a w as > Z E o y y c ^y ° r Co c Y o ° a o ° ._ o v y 2 y p as as c a) c o U Z 7 > ° y !31 - -p 7 U w 0 a m y C r E y c o d d d c > c ax> y c c o f a) E o m ° c otf C C p C w O �- LO N N N N 7 7 N U N @ (0 a) > X °) C p ? C t N N N N m o a d m c w y 0 0 E E o ° o x �' o c E m m w ° E o c) U y U) p D) E of 1D O m 7 O m 7 7 7 O O C�0 N N ~ w @ w w Ll y 0 0 O N N U m ° X aci as a> (O f- U t1 t1 t1 U U W1. tl c c c m (oi y H Z y C. H S U LL U Li Q U U H F m d p N LY w O c LL ti 195 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 2002 8,152,244 717,858 - 8,870,102 0.42442% 2003 9,111,167 753,737 - 9,864,904 0.43161% 2004 10,307,843 793,418 - 11,101,261 0.43815% 2005 11,771,189 765,065 - 12,536,254 0.43603% 2006 13,934,150 900,275 112,415 14,722,010 0.45051% 2007 16,618,860 1,004,845 133,237 17,490,468 0.46645% 2008 18,775,907 1,071,551 212,319 19,635,139 0.46829% 2009 19,737,213 1,184,333 216,211 20,705,335 0.47994% 2010 18,971,363 1,222,978 295,403 19,898,938 0.49807% 2011 18,600,617 1,157,436 287,662 19,470,391 0.49229% NOTES: 1. In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based upon the assessed value of the property being taxed. Each year, assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 2. Prior to the fiscal year ended June 30, 2006, the assessed value figures are net of exemptions. Data Source: San Bernardino County Assessor; HdL Coren & Cone 196 O O O O O O O O O O O N O V O CD N o r— h Cl) O) h N O N Ll- O) LO lh LC) LO r V O O V O O O) O M — O N O 0 0 O O O O O M O O V N 0 0 0 0 0 0 O r O O O O O O O O O O O O O M O ti "t M M lh I� n O I— CO O CD co CD LC) O CDt O O "t 0 � CDM O 0 0 0 0 ID O O M O O N 0 0 0 0 0 0 0 0 O 0 0 0 0 0 O O_ O O O O Q CDco It It M 0) coO (O M LO O co co O M MN M CD Co LO CD co CDO O O O O O IDO N O O V N — 0 0 0 0 0 0 0 — O — O O O O O O O O O O O O CO O O O M � M M Ln M O co O Ln p O co co p co O Ln O co ON O O O O O O O O N O O 0 0 0 0 O O 0 O O da) N U Ln O O O O O O_ O O_ O O O O a7 N N O O co O m co M LO N LUf) � O LN O f6 6 0 V I- N N CO O N M m Ln O LO O O O 0 0 0 0 0 O O O O N O O V Cn f6 N 0 0 0 0 0 0 0 0 O O X a) co N y6 O) — O O O Cc: N L6 N O O O O O O O O O O O O Lo Q o U O I- co L— M 't � N O N O) N LL � 0 h LO co O) O) V N h M CO a Y O N O O M Lf) O O N N O Ln O CO O ° a O O O O O O O O N O O m N Q N O O O O ' 0 0 o O O O U) co .3 00 O CD x a) aNi m ° Z m a cxo O > L O o000 00000 0 o m CD O M O N CY) V LO V Cl) d1 LO N O N Q N N M O LC) O M U, � N Mq M O �- o Q O O O M LO O O N n Lo O CO Ul a O 0 0 0 0 0 O O O N O O V -E L X O U a co N 0 0 0 0 0 0 0 0 O O � U co O L) -O f6 O _2 O L.L ° ° .. 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G1 O N O ._>, Q (6 p CO Q Lb QUUUUL.L2DDH Z < 0 197 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2011 2002 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Victoria Gardens Mall LLC $ 239,019,743 1.23% $ - 0.00% T Napf Meritage Ownership LLC 154,860,309 0.80% - 0.00% Catellus Development Corporation 140,795,745 0.72% 45,625,163 0.51% YTC Investments LLC 128,313,168 0.66% - 0.00% Homecoming I at Terra Vista LLC 117,864,489 0.61% - 0.00% EQR-Fanwell 2007 LP 95,229,844 0.49% - 0.00% Knickerbocker Properties Inc XLVII 85,744,058 0.44% - 0.00% Walmart Stores Inc 82,279,161 0.42% - 0.00% Rreef America Reit II Corporation TTTT 78,095,000 0.40% - 0.00% PPF MF 9200 Milliken Ave LP 77,239,636 0.40% - 0.00% Western Land Properties - 0 90,008,832 1.01% Recot, Inc. - 0 81,038,871 0.91% LDC Cougar LLC - 0 59,321,349 0.67% West Coast Liquidators, Inc. - 0 57,329,739 0.65% Tamco Steel Subsidiary, Inc - 0 54,118,882 0.61% Schlosser Forge Company - 0 46,770,971 0.53% Mountain Vista Power Generation - 0 39,142,329 0.44% Graham Packaging Company GPLLC - 0 37,166,413 0.42% TBC Rancho Cucamonga I, Inc - 0 36,300,387 0.41% $ 1,199,441,153 6.17% $546,822,936 6.16% Source: San Bernardino County Assessor; HdL, Coren &Cone 198 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 2002 37,044,883 36,209,613 97.75% N/A 36,209,613 97.75% 2003 41,370,392 41,367,297 99.99% N/A 41,367,297 99.99% 2004 48,523,843 47,534,048 97.96% N/A 47,534,048 97.96% 2005 54,730,054 53,435,838 97.64% N/A 53,435,838 97.64% 2006 66,676,852 65,853,106 98.76% N/A 65,853,106 98.76% 2007 80,690,744 80,591,967 99.88% N/A 80,591,967 99.88% 2008 91,354,251 90,692,622 99.28% N/A 90,692,622 99.28% 2009 98,855,469 95,515,265 96.62% N/A 95,515,265 96.62% 2010 98,181,404 95,149,733 96.91% N/A 95,149,733 96.91% 2011 95,051,899 89,513,493 94.17% N/A 89,513,493 94.17% 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 199 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2011 2002 Business Name Business Category Business Name Business Category Albertsons Grocery Stores Liquor Albertsons Grocery Stores Liquor Ameron International Contractors AM PM Mini Mart Service Stations Apple Computer Electronics/Appliance Stores Ameron International Contractors Bass Pro Shops Outdoor World Sporting Goods/Bike Stores Ameron Steel Pipe Contractors Best Buy Electronics/Appliance Stores Best Buy Electronics/Appliance Stores Chevron-Gasoline Sales Service Stations Chevron-Gasoline Sales Service Stations Costco W/Gas Discount Department Stores Circle K Grocery Stores Beer/Wine Day Creek AM PM Service Stations Circuit City Electronics/Appliance Stores Day Creek Shell Service Stations Costco Discount Department Stores Home Depot Lumber/Building Materials Costco W/Gas Discount Department Stores JC Penney Department Stores Home Depot Lumber/Building Materials Living Spaces Furniture Home Furnishings Lowes Lumber/Building Materials Lowes Lumber/Building Materials Mervyns Department Stores Macys Department Stores Novartis Animal Health Medical/Biotech Main Electric Supply Plumbing/Electrical Supplies Office Max Office Supplies/Furniture Novartis Animal Health Medical/Biotech Proficient Food Food Manufacturing Ralphs Grocery Stores Liquor Ross Family Apparel Rancho Mobil Service Stations S W School Supply Office Supplies/Furniture Sears Grand Department Stores Shell/Texaco Service Stations Shell-Gasoline Sales Service Stations Stater Bros. Grocery Stores Liquor Southwire Company Light Industrial/Printers Tamco Heavy Industrial Stater Bros. Grocery Stores Liquor Target Discount Department Stores Target Discount Department Stores Vons Grocery Stores Liquor Walmart Discount Department Stores Walmart Discount Department Stores Walters Wholesale Electric Plumbing/Electrical Supplies West End Material Supply Lumber/Building Materials Firms listed alphabetically 200 THIS PAGE INTENTIONALLY LEFT BLANK 201 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 2002 - 214,140,000 24,696,887 238,836,887 2003 - 210,555,000 21,865,499 232,420,499 2004 - 320,180,000 20,342,137 340,522,137 2005 - 317,135,000 18,740,549 335,875,549 2006 - 311,005,000 17,212,452 328,217,452 2007 - 304,685,000 23,102,037 327,787,037 2008 - 424,060,000 21,705,050 445,765,050 2009 - 413,655,000 20,754,833 434,409,833 2010 - 404,990,000 20,005,200 424,995,200 2011 - 395,920,000 19,238,811 415,158,811 NOTES: Details regarding the City's outstanding debt can be found in the notes to the financial statements The City issued over$155 million of new tax allocation bonds in 2008, 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. 2 This ratio is calculated using personal income and population for the prior calendar year. 202 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 - - - 238,836,887 7.26% 1,902 - - - 232,420,499 6.92% 1,752 - - - 340,522,137 9.55% 2,483 - - - 335,875,549 8.57% 2,290 - - - 328,217,452 7.58% 2,121 - - - 327,787,037 6.81% 2,026 - - - 445,765,050 8.63% 2,587 - - - 434,409,833 7.91% 2,492 - - - 424,995,200 7.52% 2,391 - - - 415,158,811 7.11% 2,321 203 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 2002 - 214,140 214,140 1.61% 6.38% 1,614 2003 - 210,555 210,555 1.43% 5.90% 1,536 2004 - 320,180 320,180 1.95% 8.17% 2,183 2005 - 317,135 317,135 1.74% 7.32% 2,049 2006 - 311,005 311,005 1.49% 6.46% 1,922 2007 - 304,685 304,685 1.29% 5.90% 1,768 2008 - 424,060 424,060 1.65% 7.72% 2,433 2009 - 413,655 413,655 2.00% 7.32% 2,327 2010 - 404,990 404,990 2.04% 6.93% 2,264 2011 - 395,920 395,920 2.03% - 2,354 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 2011 per capita personal income was not available as of the CAFR publication date. 204 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30, 2011 City Assessed Valuation $ 19,470,391 Redevelopment Agency Incremental Valuation 9,009,872 Adjusted Assessed Valuation $ 10,460,519 City Percentage Total Share of Applicable Debt 6/30/11 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.587% $ 227,670,000 1,336,423 Chaffey Community College District 19.331% 150,208,960 29,036,894 Chaffey Joint Union High School District 40.032% 93,260,000 37,333,843 Alta Loma School District 98.555% 17,660,201 17,405,011 Central School District 96.554% 22,450,210 21,676,576 Etiwanda School District CFD Nos. 1, 2 &3, 2004-2 &2007-1 100.000% 7,555,000 7,555,000 Etiwanda School District CFD No. 7 21.530% 13,800,000 2,971,140 Etiwanda School District CFD No. 8 68.006% 7,155,000 4,865,829 Etiwanda School District CFD No. 9 70.844% 9,800,000 6,942,712 Etiwanda School District CFD Nos. 2004-2&2007-1 100.000% 15,255,000 15,255,000 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 90.690% 19,550,000 17,729,895 Fontana Unified School District 0.958% 286,293,342 2,742,690 Upland Unified School District 0.426% 91,783,182 390,996 City of Rancho Cucamonga CFDs 100.000% 99,095,000 99,095,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 2,565,000 2,565,000 Total overlapping tax and assessment debt 1,064,100,895 266,902,009 Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations 9.181% 649,325,000 59,614,528 San Bernardino County Pension Obligations 9.181% 601,765,591 55,248,099 San Bernardino County Flood Control Dist General Fund Oblig 9.181% 111,555,000 10,241,865 Chaffey Community College District General Fund Obligations 19.331% 12,440,666 2,404,905 Cucamonga School District Certificates of Participation 29.959% 11,270,000 3,376,379 Fontana Unified School District Certificates of Participation 0.958% 51,075,000 489,299 Upland Unified School District General Fund Obligations 0.426% 1,075,000 4,580 City of Rancho Cucamonga General Fund Obligations 100.000% - - West Valley Vector Control District Certificates of Participation 25.053% 3,450,000 864,329 Total gross direct and overlapping general fund debt 1,441,956,257 132,243,984 Total net direct and overlapping general fund debt 132,243,984 Total overlapping debt $ 2,506,057,152 399,145,993 City direct debt 415,158,811 Total direct and overlapping debt $ 814,304,804 Notes: For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessec 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 residents 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. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government. Source: California Municipal Statistics, Inc., The HdL Companies 205 CITY OF RANCHO CUCAMONGA Legal Debt Margin Information Last Ten Fiscal Years 2011 2010 2009 2008 Debt limit $ 392,269,488 $ 396,560,873 $ 427,275,583 $ 414,196,025 Total net debt applicable to limit - - - - Legal debt margin $ 392,269,488 $ 396,560,873 $ 427,275,583 $ 414,196,025 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 2011: Assessed value Debt limit(3.75% of assessed value) Debt applicable to limit: General obligation bonds Legal debt margin 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 206 Fiscal Year 2007 2006 2005 2004 2003 2002 $ 370,340,380 $ 321,072,427 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 203,025,995 $ 370,340,380 $ 321,072,427 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 203,025,995 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $ 10,460,519,688 392,269,488 $ 392,269,488 207 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 2002 31,907 2,990 9,216 2.61 2003 36,139 3,585 10,878 2.50 2004 40,922 3,830 10,728 2.81 2005 45,909 3,045 14,397 2.63 2006 59,003 6,130 14,814 2.82 2007 71,985 6,320 14,577 3.44 2008 77,319 6,600 15,600 3.48 2009 77,581 10,405 20,994 2.47 2010 77,255 8,665 20,547 2.64 2011 69,583 9,070 20,122 2.38 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. 208 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) 2001 132,663 3,358,231 25,314 3.3% 2002 137,119 3,566,054 26,007 3.7% 2003 146,666 3,920,529 26,731 3.5% 2004 154,780 4,330,435 27,978 3.2% 2005 161,830 4,814,281 29,749 2.8% 2006 172,331 5,166,311 29,979 2.8% 2007 174,308 5,493,840 31,518 3.9% 2008 177,736 5,649,872 31,788 5.1% 2009 178,904 5,842,826 32,659 8.6% 2010 168,181 - - 9.4% NOTES: 12010 Personal Income unavailable as of the CAFR publication date. Sources: (1) State Department of Finance (2) Redevelopment Agency (3) State of California Employment Development Department 209 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Seven Years Ago* 2011 2004 Percent of Percent of Number of Total Number of Total Employer Employees Rank Employment Employees Rank Employment Etiwanda School District 1,312 1 1.86% 933 1 1.71% Chaffey Community College 1,300 2 1.85% 475 8 0.87% Amphastar Pharmaceuticals 999 3 1.42% - - - City of Rancho Cucamonga 880 4 1.25% 850 3 1.55% Alta Loma School District 783 5 1.11% 705 2 1.29% Macy's 750 6 1.07% - - 0.00% Central School District 680 7 0.97% 520 7 0.95% West Valley Detention Center 668 8 0.95% - - - Western Liquidators/Big Lots 521 9 0.74% - - - Mercury Insurance Company 509 10 0.72% - - - Mission Foods - - - 573 5 1.05% C. W. Construction - - - 550 6 1.01% Wal-Mart Stores, Inc - - - 445 10 0.81% Southern California Edison - - - 450 9 0.82% Frito-Lay, Inc. - - - 600 4 1.10% "Total Employment" as used above represents the total employment of all employers located within City limits. *Data for prior year is only shown from the date of the City's implementation of GASB 34 forward. 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