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2012/06/30 Comprehensive Annual Financial Report
City of Rancho Cucamonga, Cafifornia Comprehensive A nnuaC qFinanciaC Report Tear Endedjune 3 0, 2012 City of Rancho Cucamonga, California Comprehensive Annual Financial Report Year Ended June 30, 2012 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, 2012 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 AUDITORS' REPORT............................................................................................... 1 MANAGEMENT'S DISCUSSION AND ANALYSIS ............................................................................. 3 BASIC FINANCIAL STATEMENTS Government-Wide Financial Statements: Statementof Net Assets ........................................................................................................ 17 Statementof Activities............................................................................................................ 18 Fund Financial Statements: Balance Sheet- Governmental Funds................................................................................... 20 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets .............................................................................................. 24 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds ........................................................................................... 26 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statementof Activities............................................................................................................ 28 Budgetary Comparison Statement (Budgetary Basis) - General Fund.................................. 29 Budgetary Comparison Statement (Budgetary Basis - City Infrastructure Improvement...... 30 Budgetary Comparison Statement (Budgetary Basis) - Fire District ..................................... 31 Statement of Net Assets - Proprietary Funds ........................................................................ 32 Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds.............................................................................................. 33 Statement of Cash Flows - Proprietary Funds....................................................................... 34 Statement of Fiduciary Net Assets - Fiduciary Funds............................................................ 35 Statement of Changes in Fiduciary Net Assets ..................................................................... 36 Notes to Financial Statements...................................................................................................... 37 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Page Number COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES Combining Balance Sheet- Nonmajor Governmental Funds...................................................... 90 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds................................................................... 106 Budgetary Comparison Schedules (Budgetary Basis) - Special Revenue Funds: GasTax................................................................................................................................. 122 Recreation............................................................................................................................. 123 ParkDevelopment................................................................................................................. 124 Beautification......................................................................................................................... 125 LightingDistricts.................................................................................................................... 126 Landscape Maintenance Districts......................................................................................... 127 Transportation....................................................................................................................... 128 Community Development Block Grant.................................................................................. 129 AssessmentAdministration................................................................................................... 130 San Sevaine/Etiwanda Drainage.......................................................................................... 131 AirQuality Improvement........................................................................................................ 132 SouthEtiwanda Drainage ..................................................................................................... 133 Lower Etiwanda Drainage..................................................................................................... 134 Masi Commerce Center........................................................................................................ 135 MeasureI .............................................................................................................................. 136 LibraryServices .................................................................................................................... 137 California Literacy Program .................................................................................................. 138 Proposition 84— Park Bond Act............................................................................................ 139 AssetForfeiture .................................................................................................................... 140 UsedOil Recycling Grant...................................................................................................... 141 COPSProgram Grant........................................................................................................... 142 DrainageFacilities................................................................................................................. 143 CAState Library.................................................................................................................... 144 Library Services &Technologies Act.................................................................................... 145 Litter Reduction Grant........................................................................................................... 146 Energy Efficient & Conservation Block Grant....................................................................... 147 SeniorOutreach Grant.......................................................................................................... 148 UndergroundUtilities............................................................................................................. 149 Safe Routes to School Program ........................................................................................... 150 Foothill Blvd. Maintenance.................................................................................................... 151 COPS Secure our School Grant........................................................................................... 152 CA State Library Staff Innovation Fund Grant...................................................................... 153 The Big Read Library Grant.................................................................................................. 154 Department of Homeland Security Grant.............................................................................. 155 Public Resource Grants........................................................................................................ 156 Proposition1 B....................................................................................................................... 157 Integrated Waste Management............................................................................................. 158 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 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 ..................................................................... 159 Justice Assistance Program.................................................................................................. 160 Homeland Security Grant 2005............................................................................................. 161 Budgetary Comparison Schedules (Budgetary Basis) - Capital Project Funds: Assessment District 82-1 ...................................................................................................... 162 Assessment District 84-1 ...................................................................................................... 163 CFD 2000-01 South Etiwanda .............................................................................................. 164 CFD 2000-02 Rancho Cucamonga Corporate Park............................................................. 165 CFD 2000-03 Rancho Summit.............................................................................................. 166 CFD2001-01......................................................................................................................... 167 CFD 2003-01 Project Fund................................................................................................... 168 Public Library Bond Act—2000............................................................................................. 169 CFD 2004-01 Rancho Etiwanda ........................................................................................... 170 CFD 2003-01 Cultural Center............................................................................................... 171 CFD 2006-01 Vintner's Grove............................................................................................... 172 CFD 2006-02 Amador on Route 66 ...................................................................................... 173 Redevelopment Agency- Capital Project............................................................................. 174 Budget Comparison Schedule (Budgetary Basis)— Debt Service Fund: Redevelopment Agency- Debt Service................................................................................ 175 Combining Statement of Net Assets - Internal Service Funds.................................................... 178 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Internal Service Funds................................................................................... 179 Combining Statement of Cash Flows - Internal Service Funds................................................... 180 Combining Balance Sheet-All Agency Funds............................................................................ 184 Combining Statement of Changes in Assets and Liabilities - AIIAgency Funds......................................................................................................................... 190 CITY OF RANCHO CUCAMONGA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2012 TABLE OF CONTENTS Page Number STATISTICAL SECTION Financial Trends: Net Assets by Component— Last Ten Fiscal Years............................................................. 198 Statement of Activities (Condensed)— Last Ten Fiscal Years.............................................. 199 Fund Balances of Governmental Funds— Last Ten Fiscal Years ........................................ 201 Changes in Fund Balances of Governmental Funds - LastTen Fiscal Years ........................................................................................................... 202 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property...................................... 203 Direct and Overlapping Property Tax Rates—Last Ten Fiscal Years.................................. 204 Principal Property Taxpayers—Current Year and Nine Years Ago...................................... 205 Property Tax Levies and Collections— Last Ten Fiscal Years ............................................. 206 Principal Sales Tax Remitters—Current Year and Nine Years Ago..................................... 207 Debt Capacity: Ratios of Outstanding Debt by Type— Last Ten Fiscal Years.............................................. 208 Ratios of General Bonded Debt Outstanding — Last Ten Fiscal Years ................................ 210 Direct and Overlapping Debt................................................................................................. 211 Legal Debt Margin Information —Last Ten Fiscal Years....................................................... 212 Pledged-Revenue Coverage—Last Ten Fiscal Years.......................................................... 214 Demographic and Economic Information: Demographic and Economic Statistics—Last Ten Calendar Years..................................... 215 Principal Employers—Current Year and Nine Years Ago.................................................... 216 Operating Information: Full-Time and Part-Time City Employees by Function — Last Eight Fiscal Years ................ 217 Operating Indicators by Function — Last Eight Fiscal Years................................................. 218 Capital Asset Statistics by Function — Last Eight Fiscal Years............................................. 219 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2012 Introductory Section THIS PAGE INTENTIONALLY LEFT BLANK Mayor L. DENNIS MICHAEL•Mayor Pro Tem SAM SPAGNOLO Council Members WILLI.AM J.ALEXANDER, MARC STEINORTH, DIANE WILLLAMS City Manager JOHN R.GILLISON i THE CITY OF RANCHO CUCAMONGA RANCHO CUCAMONGA .February 26, 2013 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, 2012. 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 Iist of principal officials. The financial section includes the independent auditors' report, management's discussion and analysis (MD&A),the basic financial statements, notes to the financial statements, and combining and individual fund statements and schedules. The statistical section sets forth relevant financial and non-financial data depicting the City's historical trends and other significant facts. This report consists of management's representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management has established a comprehensive internal control framework that is designed both to protect the City's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City's financial statements in conformity with generally accepted accounting principles (GAAP). As management, we assert that, to the best of our knowledge and belief,this financial report is complete and reliable in all material respects. The City of Rancho Cucamonga's financial statements have been audited by Lance, Soll and Lunghard, LLP, Certified Public Accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Rancho Cucamonga for the fiscal year ended June 30, 2012, 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, 2012, 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 report not only on the fair presentation of the financial statements, but also on the audited 10500 Civic Center Dr. •P.O.Box 807•Rancho Cucamonga, CA 91729-0807•Tel(909)477-2700 • Fax(909) 477-2849 •www.CityofRC.us February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. L PROFILE OF THE CITY OF RANCHO CUCAMONGA General Information: The City of Rancho Cucamonga currently has an estimated population of 169,498 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 County of San Bernardino and other specialized agencies. The City provides building safety ii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. Until February 1, 2012, the Rancho Cucamonga Redevelopment Agency administered 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 had 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. In January 2011, Governor Brown announced that as a means of balancing the State's budget he was proposing the elimination of redevelopment. In June 2011, the California State legislature passed AB X1 26 and 27 which put in place the process for eliminating redevelopment. Subsequently, litigation was filed and in December 2011, the California State Supreme Court upheld the legislation and established February 1, 2012 as the date for redevelopment activities to begin winding down. See Note 15 for more information on the January 31, 2012 dissolution of the Redevelopment Agency. 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: The City is starting to recover from past revenue declines. Slow and gradual revenue growth continues to occur. Key elements contributing to this growth include the following: • Unemployment levels continue to improve within Rancho Cucamonga at a faster level and are more favorable than the County overall; • Small but steady increases in taxable sales of general merchandise; and • The housing market continues to recover with prices increasing, supply being at record lows, and strong demand occurring. 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. iii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga With the elimination of redevelopment, and its economic development programs, the City will be working with the business and real estate communities to maintain and rebuild our economic development activities in order to promote private investment and job retention and growth. 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 services; operations and maintenance; capital outlay; debt service; and transfer out. 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. Revenues are also estimated annually in the adoption of the annual budget. Revenues and expenditures are monitored throughout the year with quarterly updates provided to the City Council. 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 2012/13 total $47,073,731. The CIP includes improvements to paseo lighting retrofits and water conservation/landscape renovations for LMD 4R; installation of a Master Plan storm drain on Hellman Avenue and beginning of survey and design for a storm drain on Hermosa Avenue; expansion and remodel of the Public Works Services building, as well as design and plan review for the Jersey Station Training Facility; construction of a pavilion at Central Park and design and environmental reviews for the Southwest Cucamonga Park; undergrounding of utilities on two of the City's main thoroughfares; Base Line Road at 1-15 Interchange capital improvements and Iocal street pavement at various locations. Funding comes from multiple sources including Beautification funds, Drainage funds, Park Development funds, Transportation funds, 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. The objective of the investment portfolio is to meet the short and long term cash flow demands of the City. To achieve this objective, the portfolio is structured to provide safety of principal and liquidity, while then providing a reasonable return on investments. 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. As of June 30, 2012, the City of Rancho Cucamonga does not have any bonded indebtedness. iv February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Risk Management: During Fiscal Year 2011/12, 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, safety programs and employee hazardous identification programs have been implemented to minimize accident-related losses and exposure by the public. The City of Rancho Cucamonga is self-funded for the first $500,000 of loss for general liability claims and purchases coverage for losses ranging from $500,000 to $20 million. For workers' compensation claims, the City is self-funded for the first $250,000 and purchases coverage for losses ranging from $250,000 to $50 million. Additionally, the City is self-funded for the first $250,000 for employment practices liability claims and purchases coverage for losses ranging from$250,000 to $35 million. Pension Benefits: The City provides pension benefits for all employees through a statewide plan managed by the California Public Employees Retirement System (CalPERS). The City has no obligation in connection with employee benefits offered through this plan beyond its annual contractual payments to CalPERS. Additional information on the plan can be found in Note 9 in the notes to the financial statements. II. HIGHLIGHTS OF FISCAL YEAR 2011/12 Redevelopment Agency: On February 1, 2012, the Successor Agency to the Rancho Cucamonga Redevelopment Agency was formed as a result of the State's action to eliminate Redevelopment Agencies in California. The Successor Agency assumed all of the duties and responsibilities of the former Redevelopment Agency and is tasked with winding down the Agency's activities. Since June 2011, the Agency has been restricted from entering into any new contract. As a result of the elimination of redevelopment, the Agency has worked this past year to successfully complete existing projects and to maintain one affordable housing program. Economic Development The Community Development Group has become the lead for pursuing economic development programs and opportunities. Community Development currently provides all follow up with companies and real estate professionals regarding site inquiries and business expansion. Also, within Community Development is the Rancho Cucamonga Municipal Utility (RCMU). The utility this past year has also played a role in economic development by creating an economic development rate that targets high electric users that are also Iarge, employers. v February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Affordable Housinz Due to the elimination of redevelopment, the Agency has limited affordable housing resources going forward and has had to make difficult decisions involving the termination of many of its successful programs. Home Ownership: Ctywide First-Time Homebuyers Proms: This program has been eliminated. Prior to elimination the Agency had provided loans up to $80,000 in the form of a silent second mortgage to qualifying low and moderate-income families. To date, the program had assisted over 117 families. Northtown Home Ownership Program: This program has been eliminated. In past years the Redevelopment Agency had partnered with the Northtown Development Corporation to implement a home ownership program, which had assisted 48 families in their pursuit to become home owners. Family/Senior Housing Rental Opportunities: Housing that is affordable to families who want to Iive 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. On a go forward basis there will be limited resources available to address affordable housing needs. A portion of the loan between the City and the former Redevelopment Agency, as well as proceeds from housing bond funds, are the two primary sources of revenue available for housing programs and projects. These potential funding sources are significantly less than what the Agency has had access to in the past. Also, these sources are one time money and therefore can not be used for on-going programs. Prior to the elimination of redevelopment, the following accomplishments were achieved. 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 vi February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Additional Housing Programs/Activities The Agency has developed or participated in a number of other housing related programs which are listed below. At this time, the only program which the State is allowing to continue is the Mobile Home Rental Assistance Program. It should be noted that the funds for this program are provided every six months and the State has the opportunity to reject the funding of this program at any time in the future. This program provides up to $100 in assistance for the space rental payment for mobile home owners. The program operates in all 8 of the mobile home parks Iocated in the City and assists more than 120 families. Several other Housing Programs or Activities that remain ongoing are: • Workforce Housing Marketing Strategy • San Bernardino County Homeless Partnership • Foreclosure Prevention Workshops Capital Improvements In the upcoming fiscal year, the Successor Agency will continue to fund capital improvement projects utilizing the bond proceeds of the former Redevelopment Agency. Projects that will continue with this funding include the completion of the Public Works Service Center facility,the I-15 Interchange at Base Line Road improvements, and, depending on funding, potential improvements to the westerly portion of Foothill Boulevard. Prior to the elimination of redevelopment, the Agency was 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 funded this past year include: • Upper Cucamonga Storm Drain and Hellman Avenue Widening Improvements • East Avenue Master Plan Storm Drain • Foothill Boulevard Improvements • EtiwandalSan Sevaine Regional Storm Drain • I-151Base Line Interchange • Pacific Electric Trail • Corporate Yard Expansion • Demens Basin/HeIlman Fire Station Site Preparation In the future the bond proceeds that remain from the Agency's resources will be used to complete the Base Line and I-15 interchange; the Public Works Service Center; and, if possible, the street widening improvements to the west end of Foothill Boulevard. 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. vii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Engineering Administration Section In addition to overseeing the operations of the Engineering Services Department's full-time, part- time and contract employees and $37 million in combined operating and capital budgets, the Engineering Administration Section managed several significant initiatives and projects this year, Key items this year included updating the City's comprehensive Capital Improvement Program document, a ribbon-cutting ceremony for the completion of the Pacific Electric Trail within City limits, a solar feasibility study at all City facilities, and an analysis of costs associated with the Rancho Cucamonga Metrolink station. Capital Improvements Section The Capital Improvements Section is responsible for the development and implementation of the City's Capital Improvement Program and the design, inspection and contract administration of various City-funded public improvement projects including paving, curb and gutter, sidewalks, landscape and irrigation, storm drains,traffic signals, City buildings, and park facilities. A major accomplishment for the Capital Improvements Section this year was the completion of the Pacific Electric Trail within City limits. The Trail is a 7-mile stretch throughout the City that includes a decomposed granite path and a concrete walkway for pedestrians, cyclists and equestrians to enjoy. The City utilized Federal, State, Local and Redevelopment Agency Funds to finance this spectacular project. A continued priority for the Section has been maintaining the Annual Comprehensive Capital Improvement Program document which gives a five-year forecast for each active capital endeavor budgeted by the City. A total of 26 Capital Improvement Projects amounting to over$18.7 million dollars were completed during Fiscal Year 2011/12. The following are other key capital projects that were completed during Fiscal Year 2011/12: • Hermosa Avenue Community Trail and Parkway Landscaping from Lemon Avenue to Manzanita Drive, and trail fencing along Archibald Avenue • Local Street Pavement Overlay and Slurry Seal • Arrow Route Pavement Rehabilitation from Rochester Avenue to Juneberry Drive. • Storm Drain Lift Station Maintenance Projects on Etiwanda Avenue and Archibald Avenue • Hellman Avenue Pavement Rehabilitation from 19th Street to Hillside Drive • Church Street at Hermosa Avenue Traffic Signal and Signal Interconnect on Haven Avenue from Alta Loma Drive to Wilson Avenue • 4th Street and Etiwanda Avenue Sidewalk Improvements • Hellman Avenue Fire Station No. 177 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. The Transportation Development Section continues to coordinate with SANBAG on Tiers 1-4 of the Traffic Signal Synchronization Project. This regional project involves several cities in the San Bernardino Valley Region. The goal of the project-is to reduce travel times and number of stops, and to increase average speeds viii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga along the coordinated routes, while also providing enhanced access to freeway interchanges. Transportation staff also made progress on the construction of five traffic signals. Land Development Section The Land Development Section 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. 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 provided project management for the Civic Center Generator Project and HVAC upgrade; two major undertakings at City Hall this year. Other noteworthy endeavors for this year have been participating in the review of the land management software upgrade and issuing permits for new parking permit districts. Section staff also assisted the Planning Department in the Development Code update. 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 include the implementation of a food waste composting pilot program, beginning construction of the new Household Hazardous Waste Collection Facility, implementation of mandatory commercial recycling program, and the development of an Illicit Discharge Detection and Elimination Program (an NPDES permit requirement). Municipal Utility Section The Rancho Cucamonga Municipal Utility (the Utility) functions as a "spot utility" providing electric service to a limited number of commercial developments including the Victoria Gardens Regional Center as well as surrounding retail and commercial developments that were built within RCMU's service territory. This fiscal year, the Utility began a program called AutoPay, which allows customers who enroll to automatically debit their credit or bank debit card each month for the amount of their electric bill at no additional cost to the customer. This program not only provides a convenience for the customer, it also ensures that the Utility receives prompt payment for its customers' electric consumption. The Utility also established a Capital Replacement Fund this fiscal year to set aside funds in anticipation of future capital infrastructure replacement needs. Public Works Services: The Public Works Services Department is the steward of the City's ever 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 Division which is charged with the management of three subordinate divisions: 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 2011/12: ix February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Administration Division • Construction of the new Public Works Services Center began in July 2011 and will be completed in February 2013. This expansion will provide the space greatly needed to accommodate the City shifting from a growth period to a maintenance mode. The Public Works Services Center will incorporate several "green" features such as California native/drought tolerant landscaping, subterranean and drip irrigation, large windows and light wells taking full advantage of natural lighting and allowing for daylight harvesting, LED parking lot lights, pervious pavement, and the use of sustainable finishes throughout the building; solar panels will cover 50% of the roofline for the generation of electricity, and a smaller solar panel system will supplement the heating of water. • In addition to the Public Works Services building, a new Household Hazardous Waste (HHW) collection facility will be constructed along the northeast corner of the site and will also be completed in February 2013. This facility will also have drought tolerant landscaping, solar lighting, and sky lights incorporated into its construction. The new HHW collection facility will provide temporary storage of household hazardous materials collected from residents and will improve operations and customer service by reducing the number of severe weather closures by providing a workspace protected from weather conditions; increased storage space; and drive approach designed to handle a large volume of participants. Facilities Maintenance Division • 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 (14% reduction in energy consumption), but it will also result in fewer ballast changes each year. The City also received an energy efficient rebate in the amount of$2,613,20. The project began after the baseball season in September 2011 and was completed in February 2012. • Ceiling Replacement at City Hall: The spline ceiling system in the Tri-Communities Room and the Main Lobby at City Hall had reached their life expectancy(20+years) and needed to be removed and replaced with a new "T-bar" ceiling system. The existing spline ceiling was no longer being manufactured and replacing the ceiling system will allow Facilities to have one standard ceiling the for City Hall, thus expediting repairs, reducing stock expenses, improving sound efficiency and overall aesthetics. • City Hall Entry Lobby Lighting Replacement: This project consisted of the removal of the original existing high intensity discharge and incandescent lighting and replacing with high efficient induction lighting. The project was completed in June 2012. A new lighting control system was also installed as part of the project, which now allows the lights to operate only when necessary. As part of the project,the City was able to reduce the energy consumption by over 90% while increasing the lighting quality in the lobby. This has also resulted in a decrease in maintenance costs due to the increased longevity x February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga of the new fixtures. The City also submitted and received an energy efficient rebate in the amount of$1,062.45. • Many smaller projects were completed during FY 2011/12 including: Public Safety locker room carpet replacement, Public Safety rolling gate replacement, and the design of Etiwanda Creek Sports Lighting replacement. Streets, Fleet, and Storm Drain.Maintenance Division • The Illuminated Street Name Sign Replacement program continued into FY 2011/12. The scope of work included retrofitting Illuminated Street Name Signs with LED lighting, replacement of damaged signs and/or individual sign panels, and relocation of complete illuminated street name signs from mast arm mounting to sign davit arm mounting. This project promotes energy efficiency by continuing to retrofit the illuminated street name signs with more energy efficient LED lighting. The intersections completed during FY 2011/12 were on Base Line Road. • Continuation of the Street Name Sign Replacement Program: Street name sign replacements completed during this fiscal year were predominately located between Etiwanda Avenue and the east city limits from. Whittram Avenue on the south to the northern city limits. The street name sign replacement program has been on-going since 2003 and has been well received by the community and emergency response agencies. • Fleet Shop Modifications: The City currently has 18 CNG vehicles (six sweepers, ten pickup trucks, three dump trucks, one asphalt truck, one clam truck, one passenger van and one Honda sedan) in our City fleet. During FY 2009/10, Public Works Services received a $117,500 grant from the South Coast Air Quality Management District (SCAQMD) toward the fleet shop modifications to accommodate the repair and maintenance of CNG vehicles at the Public Works Services Center. Design was completed during early FY 2010/11 and modifications were completed in December 2011. • As mentioned above, during FY 2011/12, City Council approved the purchase of one CNG powered asphalt patch truck and one CNG powered tree maintenance truck; both were funded from the AB2766 Air Quality Improvement Fund as well grant funding of $30,000 each from the Mobile Source Air Pollution Reduction Review Committee (MSRC). The MSRC provides funds for the purchase of alternative fuel vehicles and infrastructure projects that reduce air pollution from motor vehicles within the South Coast Air District in Southern California pursuant to air quality and provisions of the California Clean Air Act AB 2766, Over the past few years, the City has been successful in obtaining funding for projects such as the Compressed Natural Gas (CNG) station, Fleet Shop Modification and the purchase of several new CNG vehicles. To date, we have received $399,500 in MSRC grant funding. xi February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Also during FY 2011/12, bids were received to install new pumps at the storm drain lift stations at Archibald Avenue and south of Devon Street and at Etiwanda Avenue and south of Arrow Route. Parks and Landscape Maintenance Section • For the 23rd year, 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. • Recycled Water Update: During FY 2011/12, Red Hill Park was retrofitted for recycled water and is awaiting the final transfer of water to the recycled system which is estimated to be done in January 2013. Twenty parkway and median islands sites in various landscape maintenance districts and two park sites (Victoria Arbors Park and the Adult Sports Complex)have already been connected to the recycled water system. • 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 staff and the City's waste haul vendor 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. • In October 2011, bids were solicited for the replacement of several park lattice shade shelters at Red Hill, Heritage and East Beryl Parks. These shade shelters were twenty year old structures that were exhibiting significant water and termite decay. In addition, the wood lattices were deteriorating and unattractive. This project removed and installed new lattices that will provide a structurally sound and aesthetically pleasing shade shelter. • In January 2011, staff applied for and was subsequently awarded a $35,187 competitive grant being offered by The California Department of Forestry and Fire Protection ("CAL FIRE") for a project consisting of planting a total of 115 (15 gallon size) California native trees (California Sycamore and Valley Oak) in clusters along the PE Trail. The community-involved event took place February 11, 2012 and approximately 146 volunteers from 9 volunteer groups participated. • Playground Rubberized Surface Repairs/Replacement: The City utilizes playground rubberized resilient surfacing at several park playgrounds throughout the City. Due to normal wear and tear, the playground surfaces at several parks throughout the City were repaired by removing worn and aged areas and replacing them with new rubberized material. At Central Park, the sand area around the tot lot was replaced with a resilient playground surface. xii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Tennis Court Resurfacing: Tennis courts at Lions East Park, Beryl Park and Day Creek Park were resurfaced during FY 2011/12. This project resurfaced the courts by stripping away the old existing paint, grinding any high points and repainting the courts. Planning: The Planning Department processed a wide variety of projects during the 2011/12 fiscal year. The following are the highlights of those activities. Current Planning In Current Planning, a number of major development projects, permit entitlements and special projects were processed including the production of the final draft of the comprehensive Development Code Update. Some of the activities in this section for FY 2011/12 include: • The City Council approved the comprehensive update to the Development Code. This project was a significant undertaking by staff and a consultant for more than a year. Major changes included a replacement of the entire Development Code with modifications to the Historic Preservation section and other clarifying amendments to the City of Rancho Cucamonga Municipal Code as well as a proposed addendum to the General Plan Final Program Environmental Impact Report(FPEIR). • Biane Business Park has re-designed and resubmitted their proposal for construction of a 122,304 square foot industrial warehouse building on 6.51 acres located on 8 h Street, west of Hermosa Avenue. The new design proposes to preserve contributing features of the Biane Winery, which eliminated the requirement for an Environmental Impact Report. • A redevelopment opportunity was realized at 10598 Base Line Road on the northeast corner of Haven Avenue and Base Line Road, demolishing an existing retail building of 6,600 square feet. In its place, Chase Bank is constructing a building of 4,207 square feet with remote drive-thru ATM kiosks. • Following a presentation and workshop conducted by staff in conjunction with the City of Ontario, and after Planning Commission review as well as final adoption by the City Council, two key actions took place to prepare the City of Rancho Cucamonga for future flight service and compliance with the LA/Ontario International Airport Land Use Compatibility Plan. The actions included the adoption of the Land Use Compatibility Plan and an amendment to the Development Code with respect to building height limits. • The City Council approved an amendment to extend the Development Agreement term an additional 5 years (May 16, 2017) for an approved project of 632 single-family units on approximately 248 acres of land generally located north of Wilson Avenue, east of Day Creek Boulevard and west of Etiwanda Avenue. • The Planning Department also reviewed and approved 9 various requests to either construct, refurbish, enhance and/or modify cell sites. This reflects a continued emphasis to improve technological infrastructure in the City. xiii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Advance Planning The Advance Planning section was involved in the following special projects: • The kickoff meeting for the Compass Blueprint Demonstration Project (Foothill Boulevard Bus Rapid Transit Study)was in May 2012. Staff has worked with consultants to obtain all of the necessary documents and data for the project. Two public workshops were held at Central Park in October 2012. Hundreds of survey forms have been distributed to residents, business- owners and bus riders to solicit their input. The consultants are currently conducting stakeholder interviews. A joint public meeting with the City Council and Planning Commission scheduled for December 18, 2012 will solicit feedback on the feasibility of a BRT along Foothill Boulevard in the city of Rancho Cucamonga. • Staff has been invited to participate and provide feedback to several regional transportation efforts currently taking place. These include: Update to the Omnitrans' Transit Design Guidelines, Omnitrans' Alternatives Analysis of Route 61 (Holt Boulevard/San Bernardino Avenue) Corridor, SANBAG and SCAG's Integrated Transit and Land Use Planning for the Foothill Boulevard/5th Street Transit Corridor. • Staff worked with the City Manager's Office staff to complete the application for the Sustainable Communities Planning Grant and Incentive Program. The proposal was to improve the long term sustainable development of the North Town community in Southwest Rancho Cucamonga by using grant funds to prepare a Specific/Master Plan for the area. The plan would promote historic preservation, guide infill development, reduce greenhouse gas emissions, and encourage sustainable practices such as implementing pedestrian-friendly, walkable neighborhoods in North Town. We were not awarded the grant, but it opened up the potential for other grant funding opportunities. • The City is participating (along with 20 other local jurisdictions) in the San Bernardino County Regional Greenhouse Gas Reduction Plan sponsored by SANBAG. The GHG Reduction Plan addresses the requirements of AB32 and SB375 and could be used in the development of a local climate action plan. The Draft Regional Plan and Draft EIR should be available for public review in December 2012/January 2013, with the anticipated release of the final Regional Plan in February 2013. • The 2013 Housing Element update is currently being prepared by staff. This Housing Element update will focus on updating changed circumstances and revised data and submitting the document to the California Department of Housing and Community Development by the October 15, 2013 deadline. Historic Preservation Historic Preservation activities included the following: • Historic Preservation Month for 2012 was celebrated throughout the month of May and consisted of activities such as the annual "Mother's Day Tea" frosted by the Etiwanda Historical Society; a proclamation was presented to the Sam Maloof Foundation in recognition of Preservation Month; informational historic booth displays at the City's xiv February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga "Cucamonga Challenge" 5K Run/Walk event; 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 18, 2012. This year's theme was "Discover Rancho Cucamonga's Hidden Gems" and showcased the Sam Maloof legacy as the highlight of the exhibit. The City was invited by the Maloof Foundation Board of Directors to participate in the nomination process as a co-sponsor for the submission to the National Advisory Council for Historic Preservation (ACHP) for the Relocation of the Sam and AIfreda Maloof Compound as one of its successful Section 106 stories. The success of the Section 106 process depends on the collaboration of actions and involvement of many key players, such as the public, elected officials, federal and local agencies and preservation partners. Co-sponsoring can include in-kind services in staff time or contribution of voluntary efforts. Staff worked with the Board to send them critical information needed to complete their application. 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 16,452 inspections, responded to over 650 complaints and investigations, and issued almost 2,400 permits during the 2011/12 fiscal year. Administration Services The Administration Services Section 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. An additional service provided by this division is the administration of the Mobile Home Accord Agreement program. The division works with the eight (8) mobile home park owners and managers to ensure rent stabilization for mobile home residents on fixed incomes. The Department also 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. xv February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga PIan 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. Grading Services Our Grading Services 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 2011/12, 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 February 26,2013 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 120 residents and collecting approximately 16- tons of garbage, and 1-ton of e-waste. 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 3,886 complaints in response to nuisance abatement, 16 cases of abandoned homes and more than 259 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. Another vital program for seniors, the Silver Fox Express Senior Transportation Service, provides essential transportation to the seniors in Rancho Cucamonga. The 18 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. Cultural and Performing Arts The Lewis Family Playhouse at the Victoria Gardens Cultural Center completed its sixth 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, and Broadway-style musicals. The Rancho Cucamonga Community Theatre brought three delightful new productions to the stage this year: Rumors, A Christmas Carol and Annie. The City's own theatre company, MainStreet Theatre Company produced three shows including Honus and Me, Sleeping Beauty: The Time-Traveler, and A Wrinkle in Time. Special Events and Special Proiects Last year over 30,000 community members attended the Department's major community-wide special events. July 2011 saw the return of the 4`h of July Fireworks Spectacular after a one year hiatus. Last year's special events also included: Movies and Concerts in the Park, World Music Concerts, Founders Festival Community Parade, Veteran's Day Celebration and Community Picnic, Cinco de Mayo Celebration, Cucamonga Challenge and Celebration of National Physical Fitness Month, and Springtime Movies in Town Square at Victoria Gardens. xvii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Contract Classes 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 1,696 classes were offered during the past year with a focus on supporting a Healthy RC lifestyle. Sports The Sports Division provides 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. Our `Learn to Swim' aquatics program taught over 2,000 participants new swimming skills. 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, continues to provide recreation and sports activities in a safe environment to the residents in this portion of the city. Youth and Family The Community Services Department's PIayschool program is for children ages one through five. Over 750 children attended classes focusing on building children's self esteem, attention span and social development. Playcamp is the summer version of our Playschool program with over 1,000 children attending this past summer. The Teen Center is located inside Lions West Community Center and provides a place for local teens to participate in activities, workshops, and special events after school and during the summer months. The Teen Recreation Activity Club (TRAC) is a year round volunteer/leadership club providing teens an opportunity- to get involved in their community and make a difference. RC Family Resource Center The RC Family Resource Center provides a link to over 40 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. Once a month the Resource Center hosts `Family Fun Night', with games, movies, food and more, with the goal of strengthening the family unit by creating an atmosphere of fun. Park Development Projects completed as of June 30, 2012 include: Y Adding rubber surfacing to the Playground at Central Park; r Replacement of play equipment and surfacing at Victoria Groves and Ellena Parks; and Y Installation of a large LED marquee at the Victoria Gardens Cultural Center. xviii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Projects awarded and/or started in Fiscal Year 2011112 include: ➢ Americans With Disability Act improvements at Beryl Park West and Lions Park; Replacement of play equipment and surfacing at Lions and Etiwanda Creek Parks; and ➢ Re-design and replacement of the parking lot at Etiwanda Creek Park. ➢ Freedom Courtyard at Central Park, a monument to Veterans and the Armed Forces, completed in January 2013, includes the installation of five granite slabs with military emblems, a fountain, five additional flag poles and removal and replacement of existing landscape and hardscape. 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 60,000 hours of volunteer services were provided by the Department's volunteer core. Providing opportunities for citizen involvement is an important aspect of the philosophy of the City and the Department. The Rancho Cucamonga Epicenter is home to the highest attendance ranked Southern California team in the Single `A' Baseball League, the Rancho Cucamonga Quakes. The team is a California Affiliate of the Los Angeles Dodgers. Quakes' baseball is played on the Stadium field between April and September each year. On non-game days and during the off-season,the facility is available for rent. Police Department: The City of Rancho Cucamonga contracts with the San Bernardino County Sheriffs Department for general law enforcement services. During FY 2011/12, the Police Department had 135 sworn officers, 39 general employees and 96 volunteers which include Reserves, Citizen Patrol, Equestrian Patrol and Explorers. An additional grant-funded Deputy position was added to the contract in October 2012. 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 2012, the following programs and projects highlight the inter-department collaboration and community support that justifies such high ratings: I See RC The I See RC program is a cooperative effort between the Police Department and entities such as the Rancho Cucamonga City workers. The program encourages City workers to report suspicious xlx February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga activities as they drive around the city. The program adds several more pairs of eyes looking for crime. The program hopes to expand to other workers who work in the neighborhoods. Look,Look, Look California leads the nation in accidents involving pedestrians. Nationally, the numbers are even more serious. According to the National Highway Transportation Safety Board, 12 people are killed every day of the year in pedestrian/vehicle accidents and almost 200 are injured. Older pedestrians and children are most at risk because it takes them longer to cross the street. Male pedestrians are involved in 69 percent of all fatal pedestrian/vehicle accidents. The highest risk group is children under the age of 16. The worst time of day is dusk and early evening, 5pm to 9pm. The City of Rancho Cucamonga is actively working to change the statistics. The "Look, Look, Look— Stay Alert, ,Stay Alive" program kicked off with the City Council declaring the month of March as Pedestrian and Traffic Safety Month and launching a new campaign to reach out to the community to increase awareness of the dangers posed by busy streets and distracted walking, cycling, and driving. Materials include innovative pavement markings and pole wraps with the "Look, Look, Look" campaign slogan aimed at walkers, bicyclists, and drivers are posted at key intersections throughout the city and at locations where the Pacific Electric Trail crosses major streets. Billboards, posters and postcards with the same campaign slogans promoting safety for cyclists,walkers,and drivers have been deployed community wide. Out of Sight Out of Mind Out of Sight Out of Mind is a vehicle burglary prevention brochure describing the criminal mindset, commonly stolen items, vehicle burglary prevention tips, equipment identification, and suspicious activities and how to report them. Grant Vehicles The Police Department purchased the following vehicles with grant funds (no cost the city): Mobile Command Post, two utility terrain vehicles, enclosed trailer for the utility terrain vehicles, a Tahoe SW hybrid and a Chevrolet Silverado hybrid pick-up truck. The vehicles will augment the current police fleet and enhance the ability to deliver emergency personnel and equipment to ensure the operation and security of critical infrastructure. Critical infrastructure areas are commonly in locations that cannot be reached by regular patrol vehicles. The vehicles will also be available during natural disasters such as earthquakes or wild fires. The vehicles will supplement tools available to the Police and Fire Departments as well as support regional needs. Public Safety Video Network The City of Rancho Cucamonga will continue progressing towards the implementation of a public safety video network for the purpose of creating a safer environment for all those who live, work and visit the city. These cameras will be used for detecting and deterring crimes, helping to safeguard against potential threats to the public, and managing emergency response situations during natural and manmade disasters. The cameras will be placed in strategic public locations around the city in a multi-phase project. xx February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga Fire Department: The Rancho Cucamonga Fire Protection District (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 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 District emergency response platform consists of seven paramedic-staffed engine companies and two Iadder companies operating out of 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 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 2011/12 fiscal year, District staff accomplished the following to maintain and improve existing services levels in accordance with Council approved goals: • Completed construction of the Hellman Fire Station and opened for service in January of 2012. • Began Architectural work for major Capital Maintenance Projects at the Jersey, Banyan, Amethyst and San Bernardino fire stations and the Fire Maintenance Facility. • Purchased and received a crew cab 4WD pickup truck and an enclosed trailer that houses a Polaris Ranger side-by-side vehicle. Units are equipped with all the gear necessary to perform advanced roper rescue and provide advance life support care to the victim. • Hazardous Materials (HazMat) Program - Improved partnerships with local business community and surrounding public agencies, saving the City over$250,000. • Fire Corps volunteer program established to assist with community outreach efforts and various administrative support functions. • Completed second year of weed abatement since taking over the County's program with the assistance of volunteers conducting inspections. • Emergency Management Program -In December, the City Council proclaimed a local emergency after damaging winds tore through the City. As a direct result of this proclamation, the City was able to receive disaster assistance for residents affected by the windstorm from the Small Business Administration(SBA). • Four new firefighters completed the 15't' New-Recruit Fire Academy, completing 10 weeks of training instructed by District personnel. xxi February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • Continued to develop and monitor new operational procedures as a result of the 2009 move to the ConFire Dispatch Center in Rialto. Library Services: The Library Services Department was once again very busy in Fiscal Year 2011/12. In the past fiscal year, the Department checked out over 1.15 million books, DVDs, CDs and magazines, and issued over 15,000 new library cards. Over 150,000 people used a library computer or our Wi-Fi network, and over 36,000 youngsters attended a Iibrary program. Currently 215,000 borrowers own a Rancho Cucamonga library card and enjoy a collection of over 275,000 titles, 320 magazine and newspaper subscriptions and free access to over 70 PCs through"The Three Amazing Libraries" of Rancho Cucamonga. Other Library highlights include: Children's Services: • More than 36,000 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 5,500 children and teens (a record year) 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. 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 free, hands-on computer classes. xxii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga • The Library has added the Archibald Library as a certified US Department of State Passport Acceptance Agency so that our passport acceptance service can grow in the coming year which in turn will add an addition revenue stream for the Library. • The Library successfully implemented the "Staff Innovation Fund", a program funded by a grant from the California State Library. This grant not only funded a structured continuing education and training program for Library and City staff, but also funded 6 grant projects that were of benefit to both the community and other City departments. Literacy Services: • Over fifty active literacy tutors and learner pairs call the Library their home to improve literacy skills. The continuation of this program is possible due to on-going support from the State Library, Community Development Block Grant funds, corporate and private donations. Volunteer Services: • Between the Friends of the Library and the regular volunteers, over 17,000 hours of volunteer time were donated in Fiscal Year 2011/12. • 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. The Friends Bookstores raised over$120,000 for the Library in Fiscal Year 2011/12. Library Foundation Highlights: • In the past year, the Library Foundation donated over $50,000 towards various library programs. Matching grants the Library received this year were used for supplemental funds to the"Staff Innovation Fund"and for more "Play and Learn IslandsTM,,. • The "Play and Learn IslandsTM" were recently designated a `Bright Idea" by Harvard University's Ash School of Government for innovation in government. Goals for Next Year • The Library will continue to aggressively pursue grant funds from numerous agencies. • The Library is working with the California State Library on potentially expanding the "Staff Innovation Fund" program to make it available on a statewide basis. Library staff would act as consultants for this project, and oversee its implementation. 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. xxiii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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: • Over $900,000 secured in federal, state, and private/foundational funds for Healthy RC programs. • Three policies (two ordinances and one administrative policy) were approved by the City Council that directly address employee and resident health. • Safe Routes to School program expanded into five additional schools. • Bringing Health Home program assisted 252 low-income families make more than $12,000 in purchases of fresh produce at local farmer's markets in the City. • Healthy RC Youth Leaders was active in policy development and conducted more than 100 surveys to help develop the nutrition standards policy that was adopted. 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. Staff has identified efforts to minimize the City operation's and the community's environmental impacts from City operations in the areas of water conservation, greenhouse gas reduction, energy efficiency, waste reduction, and transportation.. The focus in FY 2011/12 was to continue identifying and implementing environmentally sustainable initiatives in City operations, establishing and leveraging partnerships, and encouraging Rancho Cucamonga residents and businesses to be more environmentally conscious. Some of the accomplishments under this initiative include: • Seven public electric vehicle charging stations were strategically installed at key locations throughout the City. • The City was recognized for its electric vehicle friendly initiatives with Southern California Edison's EV Champion City award, with Rancho Cucamonga being only one of five cities to receive the award and the first Inland Empire city to do so. • The City joined the Institute for Local Government's Beacon Award Program and received two interim accomplishment awards for its progress in a number of environmentally sustainable efforts. • The Green Business Recognition Program was launched and four local businesses have joined the program • The City formed a partnership with local non-profits to launch the Partnership for a Greener Northtown which provided energy efficient home improvements to low-income Northtown homeowners. xxiv February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga 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. 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 2012 Legislative Session was especially busy with the City tracking 39 state and federal bills and sending dozens of letters to state and federal legislators and the Governor advocating our position on certain legislation and issues. This legislative session also saw for the first time the City as a major sponsor for a legislative bill: SB 986 (Dutton) which would allow redevelopment bond proceeds to be used for the projects that originally intended for. 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, SLAG, 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 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 FIOS 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 xxv February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga resolve customer service issues and ensure the very best possible service to Rancho Cucamonga citizens. Animal Care and Services: As an open admission municipal Animal Center, the Animal Care and Services Department (AC&SD) provides care, shelter, and adoption services for more than 5,700 homeless, abandoned, and abused animals each year. The Department, which began operating in May 2006, relies on the support of the community to work towards achieving their mission of building a community in which every adoptable pet finds a responsible home. The Animal Care and Services Department is also committed to protecting the health, safety and welfare of the community. The Field Services Department responds to more than 6,700 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 2417 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. Volunteers The Department offers a wide variety of volunteer opportunities in areas such as dog walking, cat socialization, basic dog training, bathing and grooming, as well as traditional opportunities such as computer services, clerical and cleaning. Volunteers make an important contribution to the success of our programs. Some programs, such as dog walking and our foster care programs are run entirely with volunteers. They have contributed over 9,000 hours of service in FY 2011/12. Increasing Adoptions The Department increased adoption promotions using both value-added and price point strategies. The Department ran several adoption promotions including Home for the Holidays, Me and My Shadow, Find Some Bunny to Love and incentive adoptions like tickets to local community events with an adoption of one of the Center's pets. The Department also hosted onsite adoption events, like monthly Yappy Hours, and partnered with community businesses and organizations for offsite adoption events. Additionally, Animal Care and Adoptions Services continued its relationship with PetSmart by having dogs and cats available for adoption in three PetSmart stores and the Department increased its marketing of animals through photography, videos and networking via the website and social media. Medical Services The Center's veterinarian continued to expand the types of surgeries able to be performed (including orthopedic surgeries) and the types of critically injured or sick patients the Center is Xxvi February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga able to care for. The Department's surgical program averages about 55 to 60 spay and neuters a week plus restoration and corrective surgeries. To help with the work load without increasing costs, the Center's veterinarian has formed partnerships with the following educational institutions to provide students to help in the surgical and medical areas at no cost to the Department: • Western University—4th year veterinary students • Fontana Unified School District—ROP Students • Platt College—RVT students • Cambridge College—RVT Students The Department has 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. They hosted their third annual Furry Friends Festival and Pet Walk-A- Thon which included over 148 dog walkers, 40 vendors and grossed over $23,000. Those funds will go directly back into more community programs in the upcoming Fiscal Year. In March of 2012, the Animal Center was awarded a grant through the California State Library as part of the staff innovation fund to collaborate with the Rancho Cucamonga Library and develop and implement a reading and humane education program called Puppy Rhymes and Storey Times. The program gave children an opportunity to read to a Therapy Dog and improve their literacy skills while Iearning how to be humane and compassionate towards animals. Puppy Rhymes and Storey Times was very successful and is going to be implemented as an on going summer program. Prouam Growth The Department continues to expand community programs that will contribute to placement of animals in new homes and reducing the number of animals that enter the Center annually. With a grant through PetSmart Charities, 89 pit bulls were spayed and neutered at no cost to the residents. In June, the Department launched its first annual free microchip and vaccination clinic with funds raised through fundraising events. Another program which is important to the placement of adoptable pets is the Department's rescue program. This program is a partnership with private, nonprofit groups who take pets from the Center and place them into suitable homes. The Department continues to expand its rescue and adoption partnerships with local and out of state Animal Shelters. This year, to help address the problem of high number of small dogs that enter the Center, the Department partnered with an Animal Shelter in Maine that does not receive many small dogs and was able to send some of the Center's small dogs to them for adoption. Administrative Services Group: The Departments and Divisions of the Administrative Services Group are unique in comparison to other City departments, in that it is a "staff' department as opposed to a "line" department. xxvii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga While line departments typically provide services only to the public, the Administrative Services Group 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 group'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 Group continued making progress on projects that were started during the previous fiscal year as well as some new projects initiated during the 2011/12 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, improve employee communication efforts, and improve leadership through focused coaching and strategic goal setting efforts. The Division will also begin to plan for the long-term fiscal sustainability of the City's landscape maintenance and street lighting districts, working with the GIS/Special Districts Division and Public Works Services Department. Finance Department: The Finance Department of the Administrative Services Group 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. The Finance Department applied for and received its 24th consecutive Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting (Certificate of Achievement). The Certificate of Achievement is an award designed to recognize and encourage excellence in financial reporting by state and local governments. It is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. The Department also submitted a newly designed budget document to the GFOA's Distinguished Budget Awards Program. The Department first submitted the budget in 2011 as a trial run, with the goal of receiving feedback. This year, the FY 2012/13 budget was fine-tuned based on that feedback, and submitted again in anticipation of receiving the award. As previously noted, Finance has played a critical role in the wind-down of the City's Redevelopment Agency that was initiated by the State in January 2012. This process has resulted in a cascade of audits and other financial reviews, as well as the administration of a new entity, the RDA Successor Agency, with its own separate and new accounting needs. The Finance Department team has shouldered this additional responsibility while at the same time seeing the loss of one full-time and one part-time position as part of the RDA loss. This speaks to the professionalism and commitment of the staff who have stepped up to the plate during this very unusual and unfortunate time. xxviii February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga The Finance Department's Business License Division ensures compliance with City codes as they relate to business licenses,transient occupancy and admission taxes. During Fiscal Year 2011/12 staff processed approximately 9,619 business license applications (7,436 renewals and 2,183 new filings), inspected 968 businesses, and collected revenues totaling$2,141,863. Human Resources Department: The Human Resources Department is responsible for managing a broad range of employment related services including employee recruitment, selection, classification, compensation, employee development and Iabor relations. In addition, the department provides risk management services including worker's compensation and general liability programs, employee wellness and safety. Key accomplishments this year include the following: • In the wake of the dissolution of RDA and the resulting layoffs that became necessary, Human Resources staff handled this difficult circumstance with sensitivity and compassion, working with each employee to help therm through the process. The Department also managed an early retirement incentive program that helped encourage some employees to retire early, which meant that fewer layoffs were ultimately needed. • New two-year memoranda of understanding were negotiated for all three City labor groups. These negotiations culminated in agreements that provided no salary increases through June of 2014, and additional contributions to retirement costs by City employees. Together with the adoption of a second retirement tier that was negotiated in 2011, these agreements will provide substantial long term savings. Geographic Information Systems/Special Districts Division.: The Geographic Information Systems/Special Districts Division of the Administrative Services Group manages all the City's special assessment districts and provides geographical mapping and application development for all City departments. Division highlights this year include the following: • The RC2GO mobile application for iPhone was launched in Spring 2012, along with the Android and Blackberry versions later in the year. RC2GO provides residents with simplified access to city information, news alerts, and service request reporting. • GIS continues to update the speed limits for all streets that are used by Dispatch to determine the closest Fire engine or truck to an incident location. • GIS has also worked with Fire, Engineering and adjacent cities to renumber the light poles on the Pacific Electric Trail. This information is now included in the Computer Aided Dispatch (CAD) system at ConFire that assists with response when a call originates from the trail. • In support of the Police Department, the Division has worked to improve and add new and updated features to the "active shooter" mapping application that will be used for emergency situations in schools in the City. • GIS provided mapping for the Healthy RC Kids project that identified locations including the Southwest area, businesses such as grocery, corner stores and fast food restaurants, and xxiX February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga potential locations for a Farmer's Market and Community Gardens in the area of interest and in the City. • Working with Business License staff, the Division identified various individuals and businesses without city business licenses but filing taxes as businesses. With about 1,800 letters sent out, $62,000 was received between business licenses and planning for new licenses and permits as a result of these efforts. With regard to Special Districts Administration, the Division managed the refinancing of several bond issues in Community Facilities Districts 2000-01, 2000-02, 2001-01 A and 2001-01 B in order to take advantage of interest rate savings without extending out the life of the bonds. These savings went right back to the property owners in these districts, lowering their assessments beginning with the December 2012 tax bill payments. Information Services Division: The Information Services Division of the Administrative Services Group 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. In FY 2011/12, Information Services replaced aged equipment and upgraded applications to maintain reliable and progressive services for our staff and community. Animal Care and Services, CLASS activities registration, Laserfiche document imaging, Fleet Maintenance, Box Office, Dynix Library management, and Fire District Records Management services were upgraded, along with network equipment at City Hall and the adjoining Police Department facility. Purchasing Division: The Purchasing Division of the Administrative Services Group 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. Division highlights this year include the following: • In May of 2012, the Purchasing Division submitted an application for the 2012 Achievement of Excellence in Procurement(AEP) award. Each year the criteria changes in order to keep up with innovations and best practices in public procurement. The Purchasing Division has once again received the award for the fourth year in a row. • The City Council adopted an ordinance removing the requirement to advertise bids in the newspaper, and replacing it with the electronic process as defined in the automated bid management system. This simple change has resulted in thousands of dollars in cost savings, as well as an increase in staff efficiency, while still casting a wide net for interested bidders. xxx February 26,2013 To the Honorable Mayor,Members of the City Council and Citizens of the City of Rancho Cucamonga In cooperation with the Risk Management Division, the Purchasing Division has proactively standardized the City's current Professional Services Agreements (PSAs) and related insurance requirements for use across all departments. The new versions have replaced all contracts being utilized throughout City departments, resulting in standardized contract Ianguage that better protects the City's interests. 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-parry 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, 2011. 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-four consecutive years. We believe that our current comprehensive annual report continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report could not have been accomplished without the efficient and dedicated service of the entire staff of the Finance Department and the administrative staff of the Administrative Services Department. We appreciate and would like to commend all the City departments who assisted and contributed material to this document. We also recognize and would like to acknowledge the Mayor and members of the City Council for their interest, dedication, and constant support in'planning and conducting the financial operations of the City in a responsible and progressive manner. Res ectfully submitted John R. Gillison Tamara L. Layne City Manager Finance Director xxxi CITY OF RANCHO CUCAMONGA CITY OFFICIALS JUNE 30, 2012 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 John R. Gillison Assistant City Manager Linda Daniels Deputy City Manager/Administrative Services Lori Sassoon Deputy City Manager/Economic and Community Development Vacant City Attorney James 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 Veronica Fincher Building and Safety Official Trang Huynh Community Services Director Nettie Nielsen 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(Contract) Jeff Bloom Police Chief Mike Newcombe Public Works Services Director Bill Wittkopf xxxi i CITY OF RANCHO CUCAMONGA ORGANIZATION CHART Citizens of Rancho Cucamonga City Clerk City Council City Treasurer City Attorney City Manager Administrative Animal Care Police Economic and Services and Services Department Community AdminlGlsas]Purch/Spec Dist Development Community Fire Finance Services District Library Human Services Resources Building and Engineering Public Works Safety Services Planning 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, 2011 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. lr 0 �C� •�'4F Thf ' • UMED STATES 11Ay f w KNO u, CA.WA President �, 1>�Ar►a�v Executive Director xxxiv City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2012 Financial Section THIS PAGE INTENTIONALLY LEFT BLANK LS •000 •so• •• CERTIFIED PUBLIC ACCOUNTANTS David E.Hale,CPA,CFP Donald G.Slater,CPA Richard K.Kikuchi,CPA Susan F.Matz,CPA Shelly K.Jackley,CPA Bryan S.Gruber,CPA Deborah A.Harper,CPA Brandon W.Burrows,CPA,Retired INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Rancho Cucamonga, California We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rancho Cucamonga, California ("City"), as of and for the year ended June 30, 2012, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of City's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes 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 the 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 opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2012, and the respective changes in financial position, and cash flows, where applicable, thereof and the respective budgetary comparison for the General Fund, Citywide Infrastructure Improvement Fund and the Fire District 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 — "Successor Agency Trust for Assets of Former Redevelopment Agency". The note provides information on the dissolution of the Redevelopment Agency and the new formed Successor Agency. In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2013, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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.lslcpas.com Orange County Temecula Valley Silicon Valley LSE CERTIFIED PUBLIC ACCOUNTANTS To the Honorable Mayor and Members of 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 budgetary schedules, 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 and schedules 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. Brea, California February 26, 2013 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, 2012. 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 ninth consecutive year that the City has issued financial statements pursuant to Statement No. 34 of the Governmental Accounting Standards Board (GASB 34). Comparative data on the government-wide financial statements are only presented in the MD&A. Overview of the Financial Statements The City is required to present its financial statements in accordance with Generally Accepted Accounting Principles (GAAP), which includes complying with the Governmental Accounting Standards Board (GASB) pronouncements. In 2003, the City was required to implement GASB Statement No. 34 (GASB 34) which required the City to add new financial reports with a new format to the existing published Comprehensive Annual Financial Report (CAFR). The new financial reporting format includes the Government-wide Financial Statements, which are comprised of the Statement of Net Assets and the Statement of Activities (explained below), and the original reporting format, which is the Fund Financial Statements (explained on page 4), combined into a single unified format. These two statements combined with the notes to the financial statements comprise the City's basic financial statements. This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. This report also contains certain supplementary information to the basic financial statements. Government-wide Financial Statements Government-wide financial statements include the City and its component units. As stated in Note 1.a. of the notes to the financial statements, the inclusion of an organization within the scope of the reporting entity of the City of Rancho Cucamonga, as either blended or separately shown, is based on the provisions of GASB Statement No. 14 The Financial Reporting Entity. Although legally separate, component units function for all practical purposes as departments of the City and, therefore, have been blended as part of the primary government. The City's component units are the Rancho Cucamonga Redevelopment Agency, the Rancho Cucamonga Public Improvement Corporation, the Rancho Cucamonga Fire Protection District, the Rancho Cucamonga Library, and the Rancho Cucamonga Public Financing Authority. These statements are designed to provide information about the activities of the City as a whole and present a longer-term view of the City's finances. This longer-term view is intended to illustrate the City's ability to continue functioning as a viable entity well beyond the next fiscal year's operations. The statements are prepared using the accrual basis of accounting. The accrual basis of accounting considers money available when earned and considers money spent when a liability is incurred. As such, this basis of accounting focuses on measuring economic resources that are available to the City regardless of the timing of the availability of those resources. For example, grant revenue may have been earned as of fiscal year end but may not be received until several months subsequent to fiscal year end. Under the accrual basis of accounting, this revenue would be recognized as a resource available to the City as of fiscal year end, even though the actual cash is not received for several months. An example related to expenditures would be the City's accrued interest liability. This liability is recognized as a usage of the City's resources as of fiscal year end, even though the actual cash payment will occur over an extended period of time. The accrual basis of accounting is similar to that used by most private sector companies. Accordingly, all of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. Additionally, these statements reflect the capitalization and depreciation of infrastructure and other capital assets (e.g., buildings, vehicles, furniture and fixtures, etc.) as well as the recognition of various long-term liabilities (e.g., bonds payable, accrued employee benefits, claims and judgments payable, etc.). 3 The government-wide financial statements distinguish functions of the City that are principally supported by taxes, intergovernmental and use of money and property revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City include general government, public safety- police, public safety - fire protection, public safety — animal center, community development, community services, and engineering and public works. The City's business-type activities include the Sports Complex and Municipal Utility operations. The statement of net assets presents information on all of the City's assets and liabilities, with the excess of assets over liabilities reported as net assets. This statement includes changes in "capitalized and depreciated" capital assets. The purpose behind the statement of net assets is that, over time, increases or decreases in the net assets are one potential useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows (both positive and negative) in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both the governmental activities and the business-type activities are presented on the accrual basis of accounting. Proprietary funds, discussed below, also follow the accrual basis of accounting. The government-wide financial statements can be found on pages 17 through 19 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. The fund financial statements provide detailed information about the most significant funds and other funds — not the City as a whole. Some funds are required by state law and by bond covenants. In addition, in order to meet legal responsibilities for using certain taxes, grants, and other resources, prudent fiscal management requires the establishment of other funds to help control and manage money. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. By contrast to the government-wide financial statements, the governmental fund financial statements, a part of the Fund Financial Statements, use the modified accrual basis of accounting which considers money available when it is collectible within the current period or soon enough thereafter (60 days after the end of the current fiscal period) 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 24 and 28 of this report). The City maintains 67 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 Citywide Infrastructure Improvement Special Revenue Fund, the Housing Special Revenue Fund, the Fire District Special Revenue Fund, the Redevelopment 4 Agency Capital Project Fund, and the Redevelopment Agency Debt Service Fund, all of which are considered major funds. Major funds determination is based on guidelines established by GASB 34. Data for the other 61 governmental funds are combined into a single, aggregated presentation. The basic governmental fund financial statements can be found on pages 20 through 27 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 90 through 121 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 29 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 177 through 180 in this report. The basic proprietary fund financial statements can be found on pages 32 through 34 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held in a trustee or agency capacity for others and therefore cannot be used to support the government's own programs. Activities reported in this category include special deposits, assessment districts, and the Successor Agency of the Former Redevelopment Agency. As of February 1, 2012, the City elected to serve as the Successor Agency of its former Redevelopment Agency which was dissolved by state law (see Notes 15 and 16 to the financial statements). The Successor Agency activity is accounted for in a private purpose trust fund. In these cases, the City has a fiduciary responsibility and is acting as a trustee. The other activities reported in this category are accounted for in an agency fund. An agency fund is used to report resources held by the City in a purely custodial capacity. 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 35 of this report. Individual fund data for each agency funds is provided in the form of combining statements found on pages 184 through 196 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 37 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 J une 30,2012 Governmental Business-Type Activities Activities Total 2012 2011 2012 2011 2012 2011 Current and other assets $ 393,632 $ 747,119 $ 7,229 $ 4,368 $ 400,861 $ 751,487 Capital assets,net 683,207 730,624 27,166 28,436 710,373 759,060 TOTAL ASSETS 1,076,839 1,477,743 34,395 32,804 1,111,234 1,510,547 Longterm liabilities outstanding 15,554 430,209 - - 15,554 430,209 Other liabilities 12,232 22,055 905 918 13,137 22,973 TOTAL LIABILITIES 27,786 452,264 905 918 28,691 453,182 Net assets: Invested in capital assets, net of related debt 683,207 392,183 27,166 28,436 710,373 420,619 Restricted 283,890 551,039 19 19 283,909 551,058 Unrestricted 81,956 82,257 6,305 3,431 88,261 85,688 TOTAL NET ASSETS $ 1,049,053 $ 1,025,479 $ 33,490 $ 31,886 $ 1,082,543 $ 1,057,365 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 include 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 64% represents net capital assets of the City, including infrastructure) exceeded total liabilities by $1,082,543,163 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 $24,414,613, or 2.3%, during the current fiscal year, reflecting positive changes in both governmental activities of $22,810,381 and business-type activities of $1,604,232. 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.) decreased by $48,687,151, net of accumulated depreciation. The decrease in capital assets was primarily due to the transfer of the former Redevelopment Agency's capital assets to the Successor Agency Trust Fund in the amount of $53,347,084. This transfer was offset with an increase in the City's capital assets due to the completion of various construction projects and infrastructure improvements to the City's trail, road and storm drain systems in the amount of $22,149,939 offset by depreciation in the amount of $17,490,006. 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.) decreased by $350,626,459. This decrease was primarily due to the transfer of assets to the Successor Agency Trust Fund. • Long-term debt outstanding (e.g., bonds, Agency loans, claims and judgments payable, and accrued employee benefits) decreased by $414,654,493. This decrease was due to debt service payments during the year in the amount of$9,884,677 and the transfer of the former Redevelopment Agency's outstanding debt to the Successor Agency Trust Fund in the amount of $405,503,154. These decreases were offset by a reclassification of prior year advances payable to long-term debt due to the Successor Agency in the amount of $3,953,624 combined with current year additional accrued interest for a developer loan in the amount of $57,242, a net increase in claims and judgments payable in the amount of $1,235,672, and a net decrease in accrued employee benefits in the amount of$83,527. • Other liabilities (e.g., accounts payable, accrued interest, due to other governments, etc.) decreased by $9,836,880. The decrease in other liabilities was primarily due to the transfer of the former Redevelopment Agency's other liabilities such as accrued interest on debt service payments of $6,688,357 that are now reported to the Successor Agency Trust Fund. 7 TABLE 2 CHANGES IN NET ASSETS (IN THOUSANDS) Year ended June 30, 2012 Governmental Business-Type Activities Activity Total 2012 2011 2012 2011 2012 2011 REVENUES: Program Revenues: Charges for services $ 14,422 $ 13,167 $ 11,851 $ 11,903 $ 26,273 $ 25,070 Operating grants and contributions 9,858 7,865 - - 9,858 7,865 Capital grants and contributions 4,501 6,121 - - 4,501 6,121 General Revenues: Taxes: Property taxes 112,749 143,094 - - 112,749 143,094 Admissions taxes 11 - 70 7 81 7 Transient occupancy taxes 1,928 1,827 - - 1,928 1,827 Sales taxes 25,548 22,751 - - 25,548 22,751 Franchise taxes 5,813 5,643 - - 5,813 5,643 Intergovernmental 88 813 - - 88 813 Use of money and property 20,205 17,024 310 334 20,515 17,358 Other 4,752 5,094 11 9 4,763 5,103 TOTAL REVENUES 199,875 223,399 12,242 12,253 212,117 235,652 EXPENSES: General government 38,659 49,581 - - 38,659 49,581 Public safety-police 28,117 28,035 - - 28,117 28,035 Public safety-fire protection 33,196 24,550 - - 33,196 24,550 Public safety-animal center 2,532 2,493 - - 2,532 2,493 Community development 16,244 19,074 - - 16,244 19,074 Community services 12,452 12,715 - - 12,452 12,715 Engineering and public works 30,000 30,466 - - 30,000 30,466 Interest on long-term debt 4,403 28,465 - - 4,403 28,465 Sports Complex - - 2,357 2,253 2,357 2,253 Municipal Utility - - 8,447 11,388 8,447 11,388 TOTAL EXPENSES 165,603 195,379 10,804 13,641 176,407 209,020 INCREASE (DECREASE) IN NET ASSETS BEFORE TRANSFERS AND EXTRAORDINARY GAIN/(LOSS)ON DISSOLUTION OF REDEVELOPMENT AGENCY 34,272 28,020 1,438 (1,388) 35,710 26,632 TRANSFERS (166) (23) 166 23 - - EXTRAORDINARY GAIN/(LOSS)ON DISSOLUTION OF REDEVELOPMENT AGENCY (11,296) - - - (11,296) - INCREASE (DECREASE) IN NET ASSETS 22,810 27,997 1,604 (1,365) 24,414 26,632 Change in Net Assets from Prior Year $ 22,810 $ 27,997 $ 1,604 $ (1,365) $ 24,414 $ 26,632 8 The condensed statement of activities of the City's governmental and business-type operations for the period ended June 30, 2012 shows total net assets increased by $24,414,613. Governmental activities increased the City of Rancho Cucamonga's net assets by $22,810,381, accounting for almost 94% of the total growth in net assets, paired with an increase of $1,604,232 in the Business-Type activities' net assets. Due to the dissolution of the former Redevelopment Agency, revenues and expenditures that used to be associated with the former Agency were accounted for in the Successor Agency effective February 1, 2012 and were no longer part of the City's financial statements. In order of total dollar amount of change, the most significant changes in revenue were in the categories of property taxes; use of money and property; and sales taxes. • The decrease in property taxes in the amount of$30,345,293 is primarily due to the dissolution of the former Redevelopment Agency; tax increment revenues that used to be accounted for in the former Redevelopment Agency are no longer part of the City's financial statements as of February 1, 2012. • The increase in use of money and property in the amount of $3,181,028 is a combination of a decrease in interest earnings due to the dissolution of the former Redevelopment Agency in the amount of $2,680,000, a decrease in interest earnings and valuations as a continued result of the economic downturn which began in December 2008 in the amount of $296,000, and an offsetting increase in interest earnings due to the recognition of deferred revenue from the Housing Fund's loans receivable in the amount $5,988,950, primarily due to loans for the First Time Homebuyer Program which weren't recognized in the prior year's financial statements.. • Sales tax revenues increased this fiscal year by $2,796,998, or 12.29%, from previous year to $25,547,933. This is the second consecutive growth year since Fiscal Year 2005/06, before the recession began, and is a strong indicator of the improving local economy. The most significant changes in expenses were in interest on long-term debt, extraordinary loss on dissolution of redevelopment agency, general government, public safety — fire protection, and community development. • Interest on long-term debt decreased by $24,062,241 from previous year due to the elimination of the former Redevelopment Agency debt service payments as a result of the dissolution. • The City recognized an extraordinary loss in the amount of$11,296,301 as a result of the dissolution of the former Redevelopment Agency. The assets and liabilities reported in the governmental activities as of January 31, 2012 were transferred to a fiduciary fund that accounts for activities of the Successor Agency. Among the transferred amounts, $405,503,154 represented long-term debt of the former Rancho Cucamonga Redevelopment Agency which was netted against the assets of the former Agency in the amount of $421,143,829. The transfer resulted in an extraordinary loss of $11,296,301 on the government-wide statement of activities. For additional information on the dissolution of the Redevelopment Agency and the impact to the City's financial statements, see Notes 15 and 16 to the financial statements. • General government expenses decreased by $10,922,387 from the previous year due to the elimination of the former Redevelopment Agency activities as a result of the dissolution beginning February 1, 2012. • Public safety - fire protection increased by $8,645,728 from the previous year primarily due to the prepayment of the District's side fund liability with CalPERS in the amount of$7,080,038. A portion of the funding for this prepayment came from an advance from the City to the Fire District in the amount of $4,556,198. This advance combined with the District's own resources provided the funding for the prepayment to CalPERS. The prepayment will result in a decrease in the District's employer contribution rate to CalPERS and will reduce the interest rate incurred on the side fund liability with CalPERS to a lower interest rate for the advance from the City. 9 • Community development decreased by $2,829,295 from the previous year due to a decrease in the Community Development Block Grant expenditures in the amount of $1,323,600, the elimination of the former Redevelopment Agency activities as a result of the dissolution in the amount of$830,000, a decrease in the General Fund's Community Development divisions in the amount of $222,000, costs for a Fire District capital project in the amount of $201,000 not recurring in the current year, and a decrease in the Energy Efficient and Conservation Block Grant in the amount of$80,000. The most significant change for the business-type activities is the Municipal Utility which, net of revenues and expenses, had an increase in net assets of $2,923,783 due to the non-recurring prior year expenditure for an exit fee payment made to the Southern California Edison in the amount of$2,400,000. The following presents the cost of each of the City's eight 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. Revenues generated by these programs consist 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 (In Thousands) Total Cost Net Cost of Services of Services 2012 2011 2012 2011 General govemment $ 38,659 $ 49,581 $ (34,563) $ (45,769) Publicsafety -police 28,117 28,036 (26,831) (26,573) Public safety -fire protection 33,196 24,550 (29,289) (23,523) Public safety -animal center 2,532 2,493 (2,333) (2,282) Community development 16,244 19,073 (13,562) (15,665) Community services 12,452 12,715 (8,384) (8,402) Engineering and public works 30,000 30,466 (17,458) (17,547) Interest on long-term debt 4,403 28,465 (4,402) (28,465) Total $ 165,603 $ 195,379 $ (136,822) $ (168,226) 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 20 - 23, the governmental funds balance sheet is shown. The combined fund balance of $317,287,067 decreased by$311,088,211 or 49%. This is a result of a combination of the following: 10 • An increase to fund balance in the amount of $3,953,624 due to a restatement of beginning fund balance resulting from advances to other funds being reclassified as long-term debt payable to the Successor Agency as a result of the dissolution of the Redevelopment Agency. The source of repayment for the advances will be developers who complete improvements in the CFD; payments are not anticipated toward the advances over the next year resulting in the advances being considered long-term debt. • A decrease to fund balance in the amount of $315,804,995 due to the extraordinary loss on dissolution of redevelopment agency. The combined fund balance of $317,287,067 represents the starting point for the reconciliation of the balance sheet of governmental funds to the statement of net assets detailed on page 17 of this report. This total includes the General Fund balance of$73,704,945, which increased by $1,694,891 from the prior year. Of the total General Fund balance, $15,006,552 or 20.36% constitutes nonspendable reserves, which means that these reserves must be maintained intact; $1,331,926 or 1.81% are restricted fund balances which are the result of external limitations on spending; $52,707,232 or 71.51% are committed fund balances which have resulted in internally-imposed limitations placed upon the funds by the City Council; the assigned reserves of $4,659,235 or 6.32% 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 for the General Fund 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 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 25% 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. 11 The balance sheet presents five other major funds, the Citywide Infrastructure Improvement Special Revenue Fund, the Housing Special Revenue Fund, the Fire District Special Revenue Fund, the Redevelopment Agency Capital Project Fund, and the Redevelopment Agency Debt Service Fund. The Citywide Infrastructure Improvement Special Revenue Fund has a fund balance of $8,650,021 which increased by $2,738,862 from the prior year. The purpose of this fund is to account for capital improvement reimbursements from other governments such as from the San Bernardino Associated Governments (SANBAG). The funds will be used for general infrastructure improvements throughout the City. The Housing Special Revenue Fund has a fund balance of $122,213,009. The City became the Housing Successor during the current year after the dissolution of the former Redevelopment Agency. As a result, an extraordinary gain is reported in the amount of$121,053,159 within the 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 $15,564,086 which increased by $1,478,809 from the prior year. Revenues received were greater than the expenditures incurred by the District. Comparing current and prior year revenues and expenses, the District's revenues and expenses increased by $10,257,910 and $6,415,814, respectively. Revenue increased due to a combination of an increase in property tax revenues from CFD 85-1 and a shift of property tax revenues that used to be received by the former Redevelopment Agency and is now directly received by the Fire District in accordance with a pass-through agreement. Expenditures increased mainly due to the prepayment of the District's side fund liability with CaIPERS which was discussed in more detail above. It should be noted that the total fund balance for the Fire District Special Revenue Fund of $15,564,086 is $4,556,197 less than the total fund balance per the District's component unit financial statements of $20,120,283. This is due to differences in the reporting of the advance from the City to the District on the City's financial statements versus the District's component unit financial statements. On the City's financial statements, the advance is treated as an interfund liability since the District is basically viewed as one of the departments of the City. (There is an offsetting interfund asset (advances to other funds) in the General Fund). In order to reflect this liability on the District's balance sheet, resources must be allocated from the District's fund balance to provide funding for the liability for reporting purposes only. On the Fire District's component unit financial statements, the advance is treated as a long-term liability and does not require the allocation of fund balance to fund the liability. For the entity-wide financial statements, the advances to and from other funds are eliminated against each other as they both relate to the City as a whole. The former Redevelopment Agency's Capital Project Fund balance decreased by $285,343,315, bringing it down to zero, as a result of the elimination of the former Redevelopment Agency. The former Redevelopment Agency's Debt Service Fund balance decreased by $148,689,804, bringing it down to zero, as a result of the elimination of the former Redevelopment Agency. 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 48 special revenue funds and 13 capital project funds. These funds have a combined fund balance of $97,155,006, which has increased by $3,703,047 from the prior year, primarily due to the reclassification of prior year advances payable to long-term debt due to the Successor Agency in the amount of $3,953,624. Of the total combined fund balance, $1,149,429 is nonspendable, $96,626,307 is restricted, and the remaining $620,730 negative 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 $33,490,301 of which $27,166,018 represents the amount invested in capital assets and $19,230 is restricted for the purpose of public benefit. Unrestricted net assets amount to 12 $6,305,053. The increase in net assets for the enterprise funds is $1,604,232, due mainly to a one-time payment to Southern California Edison for departing load charges made in the prior fiscal year as discussed earlier. Net assets for the internal service funds are $14,321,697, of which $3,341,853 represents the amount invested in capital assets. Unrestricted net assets amount to $10,979,844, which will be used to cover future vehicle and equipment and computer equipment/technology replacements. Total net assets decreased for these funds by$304,947 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$71,379,152 were $8,661,542 more than the final budgeted revenues of$62,717,610. This positive variance was due to a partial repayment of a long-term loan from the City to the Redevelopment Agency. The General Fund's actual ending expenditures of$70,389,375 were $235,755 less than the final budget of $70,625,130. The main contributor to the savings is the decrease in Personnel Overhead of the City's contribution to the Public Agency Retirement System (PARS). The contribution rate decreased from 5% to 3.4% beginning August 2011. Other savings continued across the departments from the City's attrition management program that combined 60 furlough hours for all City employees. Capital Assets and Debt Administration Capital Assets As stated in the Overview of the Financial Statements, the 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 $710,372,946 net of depreciation invested in a broad range of capital assets (see Table 3 below). This amount represents a net decrease (including additions and deductions)of$48,687,151. 13 TABLE 3 CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION, IN THOUSANDS) For the year ended June 30, 2012 Governmental Business-Type Activities Activities Total 2012 2011 2012 2011 2012 2011 Land $ 74,543 $ 83,646 $ 5,451 $ 5,451 $ 79,994 $ 89,097 Right-of-way 231,932 231,932 - - 231,932 231,932 Construction in progress 33,015 32,641 - - 33,015 32,641 Buildings and improvements 82,800 119,793 9,130 9,750 91,930 129,543 Equipment and vehicles 5,055 9,149 57 30 5,112 9,179 Furniture and fixtures 99 913 40 45 139 958 Infrastructure 255,136 251,807 12,480 13,149 267,616 264,956 Intangible 627 743 8 11 635 754 TOTALS $ 683,207 $ 730,624 $ 27,166 $ 28,436 $ 710,373 $ 759,060 The most significant change in capital assets for governmental activities is the decrease in net capital assets of the former Redevelopment Agency in the amount of $53,347,084 as a result of the dissolution of the Redevelopment Agency. Capital assets of the former Redevelopment Agency were transferred to the Successor Agency. See Note 16 to the financial statements for the analysis of capital assets of the Successor Agency Trust for Assets of Former Redevelopment Agency. The most significant change for business-type activities is the depreciation of the various fixed assets in the amount of$1,304,527. Additional information on the City's capital assets can be found in Note 5 in the financial statements. Debt Administration At year end, the City's governmental activities had total debt outstanding in the amount of $15,554,021 for advances from Successor Agency, claims and judgments payable, and accrued employee benefits compared to $430,208,514 in the prior year, a decrease of$414,654,493 (See Table 4 below). As discussed earlier, this decrease was primarily due to the transfer of the former Redevelopment Agency's debt to the Successor Agency Trust Fund as well as debt service payments which occurred during the year. These decreases were offset by a reclassification of advances payable to increase long term debt due to the Successor Agency as discussed earlier combined with increases/decreases in current year additional accrued interest for a developer loan, claims and judgments, and accrued employee benefits. 14 TABLE 4 OUTSTANDING DEBT,AT YEAR END (IN THOUSANDS) For the year ended June 30, 2012 Governmental Business-Type Activities Activities Total 2012 2011 2012 2011 2012 2011 Tax Allocation Bonds $ - $ 395,920 $ - $ - $ - $ 395,920 Developer Loans - 19,239 - - - 19,239 Capital Lease - 10 - - - 10 CVWD- Payment Deferral - 162 - - - 162 Advances from Successor Agency 3,954 3,954 - Claims and Judgments Payable 4,077 2,842 - - 4,077 2,842 Accrued Employee Benefits 7,523 7,606 - - 7,523 7,606 Unamortized Bond Premium - 4,430 - - - 4,430 TOTALS $ 15,554 $ 430,209 $ - $ - $ 15,554 $ 430,209 Additional information on the City's outstanding debts can be found in the Note 7 to the financial statements of this report. Economic Factors and Next Year's Budgets In its fourth and final quarterly report of 2012, the UCLA Anderson Forecast calls for"modest growth" in U.S. gross domestic product (GDP), housing and employment. GDP is anticipated to grow at an annual rate of less than two percent through mid-2013 but will then accelerate and exceed three percent for most of 2014 due to the increase in housing activity. Economists predict that the nation's unemployment will remain close to the current 7.9 percent rate in 2013 but will fall to 7.2 percent by the end of 2014. The California forecast reads similarly, with slow growth until the end of 2013. The forecast sees slow growth in employment, with employment growth of 1.3% and 2.4% expected in 2013 and 2014, respectively. Locally, Rancho Cucamonga is experiencing slow growth. Expected trends prepared for the City by its contracted economist suggest that, recently, the City's housing prices have stabilized and increased slightly. Based upon a Consensus forecast, housing prices, according to the most probable scenario, are expected to increase by 2.9% - 3.4% per year during 2013-2015 and then by 4.3% in 2016. Employment growth will, in turn, generate demand for housing; prices should stabilize and start to rise as the excess inventory of duress properties continues to decline. The Fiscal Year 2012/13 General Fund Budget of $63,414,270 was adopted without the use of reserves to fund recurring operations. It represents a slight increase from the prior year of $311,240 or 0.49% due to unavoidable operating cost increases such as fuel, utilities, contract services and labor-related costs such as healthcare. The Fiscal Year 2012/13 Adopted Budget includes the continued implementation of furloughs for City staff, new labor agreements to restructure benefits, facility operation reductions, program operation reductions and certain program eliminations 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 2012/13 Adopted Budget should be directed to the Finance Department at the address below. 15 Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City of Rancho Cucamonga's finances and to show the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Department at the City of Rancho Cucamonga, 10500 Civic Center Drive, Rancho Cucamonga, CA 91730. 16 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS JUNE 30, 2012 Primary Government Governmental Business-Type Activities Activities Total Assets: Cash and investments $ 188,954,466 $ 5,785,069 $ 194,739,535 Receivables: Accounts 11,120,370 1,409,559 12,529,929 Taxes 13,478,001 20,000 13,498,001 Notes and loans 134,034,761 6,768 134,041,529 Accrued interest 143,048 4,091 147,139 Deferred loans 1,120,012 - 1,120,012 Grants 650,501 - 650,501 Internal balances 2,186 (2,186) - Prepaid costs 739,166 5,945 745,111 Deposits 31,922 - 31,922 Due from external parties/outside agencies 113,273 - 113,273 Due from Successor Agency 730,040 - 730,040 Advances to Successor Agency 9,521,227 - 9,521,227 Prepaid other post employment benefits 17,311,033 - 17,311,033 Prepaid PARS retirement enhancement plan 8,390,120 - 8,390,120 Land held for resale 4,550,043 - 4,550,043 Restricted assets: Cash with fiscal agent 2,741,281 - 2,741,281 Capital assets not being depreciated 339,489,505 5,451,015 344,940,520 Capital assets, net of depreciation 343,717,423 21,715,003 365,432,426 Total Assets 1,076,838,378 34,395,264 1,111,233,642 Liabilities: Accounts payable 8,195,804 718,333 8,914,137 Accrued liabilities 2,068,672 38,514 2,107,186 Unearned revenue 688,758 - 688,758 Deposits payable 42,959 148,116 191,075 Due to other governments 1,120,012 - 1,120,012 Due to Successor Agency 115,290 - 115,290 Noncurrent liabilities: Due within one year 5,878,426 - 5,878,426 Due in more than one year 9,675,595 - 9,675,595 Total Liabilities 27,785,516 904,963 28,690,479 Net Assets: Invested in capital assets 683,206,928 27,166,018 710,372,946 Restricted for: Community development projects 139,426,645 - 139,426,645 Public safety 6,577,340 - 6,577,340 Fire protection 15,581,114 - 15,581,114 Public works 4,558,918 - 4,558,918 Community services 11,995,282 - 11,995,282 Capital projects 106,514,098 - 106,514,098 Public benefit- Municipal Utility - 19,230 19,230 Unrestricted 81,192,537 6,305,053 87,497,590 Total Net Assets $ 1,049,052,862 $ 33,490,301 $ 1,082,543,163 See Notes to Financial Statements 17 CITY OF RANCHO CUCAMONGA STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2012 Program Revenues Operating Capital Charges for Contributions Contributions Expenses Services and Grants and Grants Functions/Programs Primary Government: Governmental Activities: General government $ 38,658,739 $ 4,005,944 $ 89,810 $ - Public safety- police 28,116,587 999,851 285,815 - Public safety-fire protection 33,196,194 1,817,225 1,968,320 121,159 Public safety-animal center 2,532,280 199,778 - - Community development 16,244,217 236,334 1,667,042 779,286 Community services 12,452,334 3,254,444 813,836 - Engineering and public works 29,999,633 3,908,462 5,033,073 3,600,427 Interest on long-term debt 4,402,503 - - - Total Governmental Activities 165,602,487 14,422,038 9,857,896 4,500,872 Business-Type Activities: Sports Complex 2,357,022 327,490 - - Municipal Utility 8,447,347 11,523,731 - - Total Business-Type Activities 10,804,369 11,851,221 - - Total Primary Government $ 176,406,856 $ 26,273,259 $ 9,857,896 $ 4,500,872 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 Extraordinary gain/(loss)on dissolution of redevelopment agency(Note 16) Transfers Total General Revenues, Extraordinary Items and Transfers Change in Net Assets Net Assets at Beginning of Year Net Assets at End of Year See Notes to Financial Statements 18 Net(Expenses) Revenues and Changes in Net Assets Primary Government Governmental Business-Type Activities Activities Total $ (34,562,985) $ - $ (34,562,985) (26,830,921) - (26,830,921) (29,289,490) - (29,289,490) (2,332,502) - (2,332,502) (13,561,555) - (13,561,555) (8,384,054) - (8,384,054) (17,457,671) - (17,457,671) (4,402,503) - (4,402,503) (136,821,681) - (136,821,681) (2,029,532) (2,029,532) 3,076,384 3,076,384 1,046,852 1,046,852 (136,821,681) 1,046,852 (135,774,829) 112,748,776 - 112,748,776 11,649 69,581 81,230 1,927,812 - 1,927,812 25,547,933 - 25,547,933 5,812,817 - 5,812,817 88,508 - 88,508 20,205,266 310,237 20,515,503 4,751,712 11,452 4,763,164 (11,296,301) - (11,296,301) (166,110) 166,110 - 159,632,062 557,380 160,189,442 22,810,381 1,604,232 24,414,613 1,025,479,331 31,886,069 1,057,365,400 $ 1,049,052,862 $ 33,490,301 $ 1,082,543,163 See Notes to Financial Statements 19 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Citywide Infrastructure General Improvement Housing Fire District Assets: Cash and investments $ 55,935,109 $ 8,546,462 $ 396,700 $ 15,200,034 Receivables: Accounts 1,079,145 8,068,185 - 1,279,075 Taxes 7,076,867 - - 5,000,124 Notes - - 134,034,761 - Accrued interest 49,650 6,716 - 8,224 Deferred loans - - - - Grants - - - - Prepaid costs 609,127 - - 68,743 Deposits 20,000 - - - Due from other funds 2,067,479 - - - Due from Successor Agency 722,108 - - 7,932 Due from external parties/outside agencies 113,273 - - - Advances to other funds 4,856,198 - - - Advances to Successor Agency 9,521,227 - - - Land and buildings held for resale - - 3,473,832 - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 82,050,183 $ 16,621,363 $ 137,905,293 $ 21,564,132 Liabilities and Fund Balances: Liabilities: Accounts payable $ 3,869,486 $ 500 $ - $ 728,105 Accrued liabilities 1,262,522 - - 433,956 Deferred revenues 3,158,160 7,970,842 15,692,284 - Unearned revenues - - - - Deposits payable 42,959 - - - Due to other governments - - - - Due to other funds - - - 276,613 Due to Successor Agency 12,111 - - 5,174 Advances from other funds - - - 4,556,198 Total Liabilities 8,345,238 7,971,342 15,692,284 6,000,046 See Notes to Financial Statements 20 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Capital Project Debt Service Fund Funds Other Total Redevelopment Redevelopment Governmental Governmental Agency Agency Funds Funds Assets: Cash and investments $ - $ - $ 97,784,969 $ 177,863,274 Receivables: Accounts - - 693,965 11,120,370 Taxes - - 1,401,010 13,478,001 Notes - - - 134,034,761 Accrued interest - - 71,055 135,645 Deferred loans - - 1,120,012 1,120,012 Grants - - 650,501 650,501 Prepaid costs - - 61,296 739,166 Deposits - - 11,922 31,922 Due from other funds - - - 2,067,479 Due from Successor Agency - - - 730,040 Due from external parties/outside agencies - - - 113,273 Advances to other funds - - - 4,856,198 Advances to Successor Agency - - - 9,521,227 Land and buildings held for resale - - 1,076,211 4,550,043 Restricted assets: Cash and investments with fiscal agents - - 2,741,281 2,741,281 Total Assets $ - $ - $ 105,612,222 $ 363,753,193 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 3,478,962 $ 8,077,053 Accrued liabilities - - 372,194 2,068,672 Deferred revenues - - 610,605 27,431,891 Unearned revenues - - 688,758 688,758 Deposits payable - - - 42,959 Due to other governments - - 1,120,012 1,120,012 Due to other funds - - 1,788,680 2,065,293 Due to Successor Agency - - 98,005 115,290 Advances from other funds - - 300,000 4,856,198 Total Liabilities - - 8,457,216 46,466,126 See Notes to Financial Statements 21 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Citywide Infrastructure General Improvement Housing Fire District Fund Balances: Nonspendable Prepaid costs 609,127 - - 68,743 Deposits 20,000 - - - Notes and loans - - 118,342,477 - Land held for resale - - 3,473,832 - Advances to other funds 14,377,425 - - - Restricted Public safety-police - - - - Community development projects - - 396,700 - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Information technology 637,113 - - - General plan update 76,639 - - - Contractual obligation 376,996 - - 206,311 Capital improvement projects 241,178 - - 360,057 Committed Capital improvement projects - 8,650,021 - - Employee leave payouts 5,633,570 - - 2,340,112 Vehicle and equipment replacement - - - 4,662,250 PERS rate stabilization - - - 1,376,394 Capital facilities repair - - - 1,123,956 Working capital 3,170,714 - - 2,647,267 Self insurance 7,583,333 - - - Booking fees 1,391,059 - - - City facilities'capital repair 15,899,958 - - - Changes in economic circumstances 14,609,816 - - 1,101,192 Law enforcement 4,418,782 - - - Assigned Radio system acquisition 361,722 - - - Communications - - - 150,000 Dispatch system acquisition - - - 455,139 Capital projects 1,550,000 - - 1,016,112 Contract development services 1,111,350 - - - Sphere of influence 695,710 - - - Multi-Species Habitat Plan 200,000 - - - Spay/neuter program 249,332 - - - Mobile home park program 57,189 - - - Continuing operations 433,932 - - 56,553 Unassigned - - - - Total Fund Balances 73,704,945 8,650,021 122,213,009 15,564,086 Total Liabilities and Fund Balances $ 82,050,183 $ 16,621,363 $ 137,905,293 $ 21,564,132 See Notes to Financial Statements 22 CITY OF RANCHO CUCAMONGA BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2012 Capital Project Debt Service Fund Funds Other Total Redevelopment Redevelopment Governmental Governmental Agency Agency Funds Funds Fund Balances: Nonspendable Prepaid costs - - 61,296 739,166 Deposits - - 11,922 31,922 Notes and loans - - - 118,342,477 Land held for resale - - 1,076,211 4,550,043 Advances to other funds - - - 14,377,425 Restricted Public safety-police - - 767,499 767,499 Community development projects - - 12,797,327 13,194,027 Parks and recreation - - 1,882,365 1,882,365 Engineering and public works - - 40,029,248 40,029,248 Capital improvement projects - - 5,336,248 5,336,248 Street lighting - - 5,621,257 5,621,257 Landscape maintenance - - 12,810,261 12,810,261 Library services - - 6,691,884 6,691,884 Underground utilities - - 10,690,218 10,690,218 Information technology - - - 637,113 General plan update - - - 76,639 Contractual obligation - - - 583,307 Capital improvement projects - - - 601,235 Committed Capital improvement projects - - - 8,650,021 Employee leave payouts - - - 7,973,682 Vehicle and equipment replacement - - - 4,662,250 PERS rate stabilization - - - 1,376,394 Capital facilities repair - - - 1,123,956 Working capital - - - 5,817,981 Self insurance - - - 7,583,333 Booking fees - - - 1,391,059 City facilities'capital repair - - - 15,899,958 Changes in economic circumstances - - - 15,711,008 Law enforcement - - - 4,418,782 Assigned Radio system acquisition - - - 361,722 Communications - - - 150,000 Dispatch system acquisition - - - 455,139 Capital projects - - - 2,566,112 Contract development services - - - 1,111,350 Sphere of influence - - - 695,710 Multi-Species Habitat Plan - - - 200,000 Spay/neuter program - - - 249,332 Mobile home park program - - - 57,189 Continuing operations - - - 490,485 Unassigned - - (620,730) (620,730) Total Fund Balances - - 97,155,006 317,287,067 Total Liabilities and Fund Balances $ - $ - $ 105,612,222 $ 363,753,193 See Notes to Financial Statements 23 CITY OF RANCHO CUCAMONGA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS JUNE 30, 2012 Fund balances of governmental funds $ 317,287,067 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. 679,865,075 Long-term debt and compensated absences that have not been included in the governmental fund activity: Advances from Successor Agency $ (3,953,624) Claims and judgments (4,077,504) Compensated absences (7,522,893) (15,554,021) Governmental funds report all OPEB contributions as expenditures, however in the statement of net assets any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC)are recorded as an asset or liability. 17,311,033 Governmental funds report all PARS contributions as expenditures, however in the statement of net assets any excesses or deficiencies in contributions in relation to the Annual Required Contribution (ARC)are recorded as a asset or liability. 8,390,120 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. 27,431,891 Internal service funds are used by management to charge the costs of certain activities, such as equipment management to individual funds. The assets and liabilities of the internal service funds must be added to the statement of net assets. 14,321,697 Net assets of governmental activities $1,049,052,862 See Notes to Financial Statements 24 THIS PAGE INTENTIONALLY LEFT BLANK 25 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds Citywide Infrastructure General Improvement Housing Fire District Revenues: Taxes $ 51,224,465 $ - $ - $ 30,539,146 Licenses and permits 3,209,362 - - 666,982 Intergovernmental 542,635 2,621,419 - - Charges for services 2,254,688 - - 22,834 Use of money and property 8,435,647 125,923 396,700 167,240 Fines and forfeitures 999,847 - - 73,465 Contributions 36,224 - - 1,968,320 Developer participation - - - - Miscellaneous 3,690,129 - - 956,189 Total Revenues 70,392,997 2,747,342 396,700 34,394,176 Expenditures: Current: General government 12,988,353 - - - Public safety-police 27,323,091 - - - Public safety-fire protection - - - 31,771,293 Public safety-animal center 2,532,280 - - - Community development 4,838,993 - - - Community services 4,001,217 - - - Engineering and public works 10,988,379 - - - Capital outlay 3,769,053 8,980 - 1,321,998 Debt service: Principal retirement 161,780 - - - Interest and fiscal charges - - - - Pass-through agreement payments - - - - Total Expenditures 66,603,146 8,980 - 33,093,291 Excess(Deficiency)of Revenues Over(Under) Expenditures 3,789,851 2,738,362 396,700 1,300,885 Other Financing Sources(Uses): Transfers in 942,400 - - 168,860 Transfers out (3,081,115) - - - Other debts issued - - - - Proceeds from sale of capital asset 43,755 - - 9,064 Total Other Financing Sources (Uses) (2,094,960) - - 177,924 Extraordinary gain/(loss)on dissolution of redevelopment agency(Note 16) - - 121,053,159 - Net Change in Fund Balances 1,694,891 2,738,362 121,449,859 1,478,809 Fund Balances: Beginning of year, as originally reported 72,010,054 5,911,659 - 14,085,277 Restatements - - 763,150 - Beginning of year, as restated 72,010,054 5,911,659 763,150 14,085,277 Net Change in Fund Balances 1,694,891 2,738,362 121,449,859 1,478,809 End of Year $ 73,704,945 $ 8,650,021 $ 122,213,009 $ 15,564,086 See Notes to Financial Statements 26 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS YEAR ENDED JUNE 30, 2012 Capital Projects Debt Service Fund Fund Other Total Redevelopment Redevelopment Governmental Governmental Agency Agency Funds Funds Revenues: Taxes $ 9,715,853 $ 38,863,410 $ 14,917,835 $ 145,260,709 Licenses and permits - - 925 3,877,269 Intergovernmental - - 11,369,373 14,533,427 Charges for services - - 4,664,256 6,941,778 Use of money and property 2,521,619 252,101 2,202,931 14,102,161 Fines and forfeitures - - - 1,073,312 Contributions - - 719,571 2,724,115 Developer participation - - 2,197,474 2,197,474 Miscellaneous - - 1,093,635 5,739,953 Total Revenues 12,237,472 39,115,511 37,166,000 196,450,198 Expenditures: Current: General government 2,206,263 14,067,829 3,448,855 32,711,300 Public safety-police - - 333,484 27,656,575 Public safety-fire protection - - 129,786 31,901,079 Public safety-animal center - - - 2,532,280 Community development 102,320 - 10,083,518 15,024,831 Community services - - 8,149,786 12,151,003 Engineering and public works - - 5,928,678 16,917,057 Capital outlay 7,807,127 857,519 9,098,961 22,863,638 Debt service: Principal retirement 2,982,900 6,730,000 9,997 9,884,677 Interest and fiscal charges 4,552,549 6,247,721 291,777 11,092,047 Pass-through agreement payments - 3,030,962 - 3,030,962 Total Expenditures 17,651,159 30,934,031 37,474,842 185,765,449 Excess (Deficiency)of Revenues Over(Under) Expenditures (5,413,687) 8,181,480 (308,842) 10,684,749 Other Financing Sources(Uses): Transfers in 26,858 - 141,955 1,280,073 Transfers out - (26,858) (83,690) (3,191,663) Other debts issued - 57,242 - 57,242 Proceeds from sale of capital asset - - - 52,819 Total Other Financing Sources (Uses) 26,858 30,384 58,265 (1,801,529) Extraordinary gain/(loss)on dissolution of redevelopment agency(Note 16) (279,956,486) (156,901,668) - (315,804,995) Net Change in Fund Balances (285,343,315) (148,689,804) (250,577) (306,921,775) Fund Balances: Beginning of year, as originally reported 285,343,315 148,689,804 93,451,959 619,492,068 Restatements - - 3,953,624 4,716,774 Beginning of year, as restated 285,343,315 148,689,804 97,405,583 624,208,842 Net Change in Fund Balances (285,343,315) (148,689,804) (250,577) (306,921,775) End of Year $ - $ - $ 97,155,006 $ 317,287,067 See Notes to Financial Statements 27 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, 2012 Net change in fund balances-total governmental funds $ (306,921,775) 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. Capital outlay $ 21,495,310 Depreciation (14,649,853) 6,845,457 Repayment of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. Principal repayments: Tax allocation bonds 9,520,000 Developer loans 192,900 Capital lease 9,997 Payment deferral 161,780 Increase in developer loans (57,242) Change in claims and judgments payable (1,235,672) Amortization of bond premiums/discounts 85,299 8,677,062 Debt issuance costs are expenditures in governmental funds, but these costs are capitalized on the statement of net assets. (145,845) Accrued interest for long-term liabilities. This is the net change in accrued interest for the current period. 6,750,090 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. 83,527 Governmental funds report all contributions in relation to the annual required contribution (ARC)for OPEB as expenditures, however in the statement of activities only the ARC is an expense. 417,614 Governmental funds report all contributions in relation to the annual required contribution (ARC)for PARS as expenditures, however in the statement of activities only the ARC is an expense. (357,222) 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. 3,257,726 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. (304,947) Extraordinary gains and losses relating to capital assets and long term liabilities transferred to the Successor Agency are reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported in the governmental funds. Capital assets (53,347,085) Unamortized bond issuance costs (5,330,449) Long-term liabilities 409,847,528 Deferred revenue (46,661,300) 304,508,694 Change in net assets of governmental activities $ 22,810,381 See Notes to Financial Statements 28 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) GENERALFUND YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance,July 1 $ 72,010,054 $ 72,010,054 $ 72,010,054 $ - Resources(Inflows): Taxes 48,753,510 49,509,680 51,224,465 1,714,785 Licenses and permits 3,495,350 3,364,900 3,209,362 (155,538) Intergovernmental 1,071,940 536,030 542,635 6,605 Charges for services 3,240,040 2,587,650 2,254,688 (332,962) Use of money and property 1,073,900 936,070 8,435,647 7,499,577 Fines and forfeitures 1,085,220 896,220 999,847 103,627 Contributions 35,000 35,000 36,224 1,224 Miscellaneous 3,637,550 3,849,320 3,690,129 (159,191) Transfers in 1,142,060 942,400 942,400 - Proceeds from sale of capital asset 67,790 60,340 43,755 (16,585) Amounts Available for Appropriation 135,612,414 134,727,664 143,389,206 8,661,542 Charges to Appropriation(Outflow): General government General overhead 3,084,240 3,036,580 2,981,252 55,328 Personnel overhead 182,770 1,591,690 1,254,992 336,698 City council 143,630 161,940 155,596 6,344 City manager 1,209,440 949,220 919,380 29,840 City clerk 2,810 2,840 2,686 154 Administrative services 226,260 266,780 269,827 (3,047) Business licenses 347,120 339,880 334,960 4,920 City facilities 2,124,520 2,128,690 2,082,132 46,558 Finance 1,115,200 1,097,890 1,083,857 14,033 Geographic information systems 298,900 269,260 269,705 (445) Management information services 2,655,050 2,669,860 2,587,847 82,013 Personnel 341,010 363,260 328,167 35,093 Purchasing 398,350 401,340 396,671 4,669 Risk management 208,340 211,190 189,969 21,221 Treasury management 6,210 7,630 6,350 1,280 Records Management 454,670 419,860 422,548 (2,688) Public safety-police Sheriff contract services 442,840 27,366,440 27,336,142 30,298 Public safety-animal center Animal center 2,570,490 2,573,770 2,532,280 41,490 Community development Planning 1,887,690 1,611,970 1,539,911 72,059 Planning commission 4,297,200 11,150 10,889 261 Code enforcement 866,210 894,180 893,196 984 Administration 244,860 408,950 390,599 18,351 Building and safety 2,153,210 2,090,180 2,059,801 30,379 Community services Administration 4,438,860 4,241,480 3,998,518 242,962 Park and recreation commission 27,388,800 3,080 2,823 257 Engineering and public works Construction management 471,510 455,130 437,477 17,653 Development management 659,110 612,560 567,410 45,150 NPDES 505,940 461,410 433,501 27,909 Project management 169,710 161,630 174,147 (12,517) Traffic management 185,650 506,860 492,619 14,241 Street and park maintenance 86,680 4,510,430 4,269,118 241,312 Vehicle and equipment maintenance 1,309,710 1,280,630 1,250,264 30,366 Facilities Maintenance 3,929,770 3,877,350 3,461,614 415,736 Capital outlay 599,500 4,066,990 4,010,232 56,758 Debt service: - Principal retirement - - 161,780 (161,780) Transfers out 1,704,000 1,573,030 3,081,115 (1,508,085) Total Charges to Appropriations 66,710,260 70,625,130 70,389,375 235,755 Budgetary Fund Balance,June 30(Budgetary Basis) $ 68,902,154 $ 64,102,534 72,999,831 $ 8,897,297 Encumbrances 705,114 Budgetary Fund Balance,June 30(GAAP Basis) $ 73,704,945 See Notes to Financial Statements 29 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) CITYWIDE INFRASTRUCTURE IMPROVEMENT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 5,911,659 $ 5,911,659 $5,911,659 $ - Resources (Inflows): Intergovernmental 3,700,000 2,500,000 2,621,419 121,419 Use of money and property 65,680 86,500 125,923 39,423 Amounts Available for Appropriation 9,677,339 8,498,159 8,659,001 160,842 Charges to Appropriation (Outflow): Capital outlay - 6,233,000 6,212,212 20,788 Total Charges to Appropriation - 6,233,000 6,212,212 20,788 Budgetary Fund Balance,June 30(Budgetary Basis) $ 9,677,339 $ 2,265,159 2,446,789 $ 181,630 Encumbrances 6,203,232 Budgetary Fund Balance,June 30 (GAAP Basis) $8,650,021 See Notes to Financial Statements 30 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON STATEMENT(BUDGETARY BASIS) FIRE DISTRICT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $14,085,277 $ 14,085,277 $14,085,277 $ - Resources (Inflows): Taxes 21,430,970 21,434,200 30,539,146 9,104,946 Licenses and permits 627,170 662,460 666,982 4,522 Charges for services 42,540 42,000 22,834 (19,166) Use of money and property 199,190 161,680 167,240 5,560 Fines and forfeitures 24,200 53,370 73,465 20,095 Contributions 1,968,320 1,968,320 1,968,320 - Miscellaneous 708,740 927,340 956,189 28,849 Transfers in 172,840 170,750 168,860 (1,890) Proceeds from sale of capital asset - - 9,064 9,064 Amounts Available for Appropriation 39,259,247 39,505,397 48,657,377 9,151,980 Charges to Appropriation (Outflow): Public safety-fire protection 25,269,460 32,562,448 32,019,078 543,370 Capital outlay 943,110 2,300,590 1,682,055 618,535 Total Charges to Appropriation 26,212,570 34,863,038 33,701,133 1,161,905 Budgetary Fund Balance,June 30 (Budgetary Basis) $13,046,677 $ 4,642,359 14,956,244 $ 10,313,885 Encumbrances 607,842 Budgetary Fund Balance,June 30 (GAAP Basis) $15,564,086 See Notes to Financial Statements 31 CITY OF RANCHO CUCAMONGA STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2012 Business-Type Activities-Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Total Service Funds Assets: Current: Cash and investments $ 8,964 $ 5,776,105 $ 5,785,069 $ 11,091,192 Receivables: Accounts 28,040 1,381,519 1,409,559 - Taxes 20,000 - 20,000 - Notes and loans - 6,768 6,768 - Accrued interest - 4,091 4,091 7,403 Prepaid costs - 5,945 5,945 - Total Current Assets 57,004 7,174,428 7,231,432 11,098,595 Noncurrent: Capital assets-net of accumulated depreciation 14,583,915 12,582,103 27,166,018 3,341,853 Total Noncurrent Assets 14,583,915 12,582,103 27,166,018 3,341,853 Total Assets $ 14,640,919 $ 19,756,531 $ 34,397,450 $ 14,440,448 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 61,589 $ 656,744 $ 718,333 $ 118,751 Accrued liabilities 28,303 10,211 38,514 - Deposits payable - 148,116 148,116 - Due to other funds 2,186 - 2,186 - Total Current Liabilities 92,078 815,071 907,149 118,751 Total Liabilities 92,078 815,071 907,149 118,751 Net Assets: Invested in capital assets 14,583,915 12,582,103 27,166,018 3,341,853 Restricted for public benefit-Municipal Utility - 19,230 19,230 - Unrestricted (35,074) 6,340,127 6,305,053 10,979,844 Total Net Assets 14,548,841 18,941,460 33,490,301 14,321,697 Total Liabilities and Net Assets $ 14,640,919 $ 19,756,531 $ 34,397,450 $ 14,440,448 See Notes to Financial Statements 32 CITY OF RANCHO CUCAMONGA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2012 Business-Type Activities-Enterprise Funds Governmental Activities- Sports Municipal Internal Complex Utility Total Service Funds Operating Revenues: Sales and service charges $ 327,490 $ 11,523,731 $ 11,851,221 $ 590 Rent 223,317 - 223,317 - Miscellaneous 11,073 379 11,452 - Total Operating Revenues 561,880 11,524,110 12,085,990 590 Operating Expenses: Salaries and benefits 977,957 402,788 1,380,745 - Maintenance and operations 491,114 6,882,602 7,373,716 591,232 Contractual services 264,268 481,113 745,381 - Depreciation expense 623,683 680,844 1,304,527 1,574,321 Total Operating Expenses 2,357,022 8,447,347 10,804,369 2,165,553 Operating Income(Loss) (1,795,142) 3,076,763 1,281,621 (2,164,963) Nonoperating Revenues(Expenses): Admission tax 69,581 - 69,581 - Interest revenue (54) 86,974 86,920 114,536 Total Nonoperating Revenues(Expenses) 69,527 86,974 156,501 114,536 Income(Loss)Before Transfers (1,725,615) 3,163,737 1,438,122 (2,050,427) Transfers in 1,108,510 - 1,108,510 1,745,480 Transfers out - (942,400) (942,400) - Changes in Net Assets (617,105) 2,221,337 1,604,232 (304,947) Net Assets: Beginning of Year 15,165,946 16,720,123 31,886,069 14,626,644 End of Fiscal Year $ 14,548,841 $ 18,941,460 $ 33,490,301 $ 14,321,697 See Notes to Financial Statements 33 CITY OF RANCHO CUCAMONGA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2012 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 $ 564,417 $ 11,522,900 $ 12,087,317 $ 590 Cash paid to suppliers for goods and services (754,890) (7,395,783) (8,150,673) (600,340) Cash paid to employees for services (968,194) (400,157) (1,368,351)Net Cash Provided(Used) by Operating Activities (1,158,667) 3,726,960 2,568,293 (599,750) Cash Flows from Non-Capital Financing Activities: Cash transfers in 1,108,510 - 1,108,510 1,745,480 Cash transfers out - (942,400) (942,400) - Amounts received from other funds 2,186 - 2,186 - Admission tax received 49,581 - 49,581 - Net Cash Provided(Used) by Non-Capital Financing Activities 1,160,277 (942,400) 217,877 1,745,480 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets - (34,915) (34,915) (658,410) Net Cash Provided(Used) by Capital and Related Financing Activities - (34,915) (34,915) (658,410) Cash Flows from Investing Activities: Interest received (54) 84,650 84,596 113,384 Net Cash Provided(Used) by Investing Activities (54) 84,650 84,596 113,384 Net Increase(Decrease) in Cash and Cash Equivalents 1,556 2,834,295 2,835,851 600,704 Cash and Cash Equivalents at Beginning of Year 7,408 2,941,810 2,949,218 10,490,488 Cash and Cash Equivalents at End of Year $ 8,964 $ 5,776,105 $ 5,785,069 $ 11,091,192 Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (1,795,142) $ 3,076,763 $ 1,281,621 $ (2,164,963) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 623,683 680,844 1,304,527 1,574,321 (Increase)decrease in accounts receivable 2,537 (4,706) (2,169) - (Increase)decrease in notes and loans receivable - 3,496 3,496 - (Increase)decrease in prepaid expense - (5,945) (5,945) - Increase(decrease)in accounts payable 492 (6,879) (6,387) (9,108) Increase(decrease)in accrued liabilities 9,763 2,631 12,394 - Increase(decrease)in deposits payable - (19,244) (19,244) - Total Adjustments 636,475 650,197 1,286,672 1,565,213 Net Cash Provided(Used) by Operating Activities $ (1,158,667) $ 3,726,960 $ 2,568,293 $ (599,750) Non-Cash Investing, Capital, and Financing Activities: During fiscal year 2011-2012,there was no noncash investing, capital or financing activities. See Notes to Financial Statements 34 CITY OF RANCHO CUCAMONGA STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2012 Private-Purpose Trust Fund Successor Agency Agency of the Funds Former RDA Assets: Cash and investments $ 24,198,977 $ 340,188,934 Receivables: Accounts 1,500 3,803 Taxes 75,077 - Accrued interest 10,895 826,240 Deferred loans - 13,000,000 Prepaid costs - 10,940 Due from City - 115,290 Advances to City - 3,953,624 Land held for resale - 937,997 Deferred charges - 5,226,274 Restricted assets: Cash and investments with fiscal agents 9,296,321 20,313,946 Capital assets: Capital assets, not being depreciated - 14,293,153 Capital assets, net of accumulated depreciation - 39,595,589 Total Assets $ 33,582,770 438,465,790 Liabilities: Accounts payable $ 66,795 13,486,380 Accrued liabilities 25,370 26,551 Accrued interest - 6,688,357 Deposits payable 7,682,234 - Due to City - 730,040 Payable to trustee 25,744,774 - Due to external parties/other agencies 63,597 - Long-term liabilities: Due within one year - 10,419,644 Due in more than one year - 408,874,526 Total Liabilities $ 33,582,770 440,225,498 Net Assets: Held in trust for other purposes (1,759,708) Total Net Assets $ (1,759,708) See Notes to Financial Statements 35 CITY OF RANCHO CUCAMONGA STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS YEAR ENDED JUNE 30,2012 Private-Purpose Trust Fund Successor Agency of the Former RDA Additions: Taxes $ 20,827,777 Interest and change in fair value of investments 1,222,660 Miscellaneous 2,605,023 Total Additions 24,655,460 Deductions: Administrative expenses 87,401 Contractual services 5,198,463 Interest expense 20,008,251 Depreciation expense 840,271 Contributions to other governments 385,680 Reimbursement of prior taxes to County 11,191,403 Total Deductions 37,711,469 Extraordinary gain/(loss)on dissolution of redevelopment agency(Note 16) 11,296,301 Changes in Net Assets (1,759,708) Net Assets- Beginning of the Year Net Assets-End of the Year $ (1,759,708) See Notes to Financial Statements 36 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 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. The Redevelopment Agency was dissolved as of January 31, 2012 through the Supreme Court decision on Assembly Bill 1X 26. See Note 15 for more information on the dissolution. Separate financial statements are not available for 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. 37 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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. 38 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 funds consist of agency funds and a private purpose trust fund. 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. Private purpose trust fund funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred 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 Citywide Infrastructure Improvement Fund accounts for capital improvement reimbursements from the San Bernardino Associated Governments (SANBAG). The funds will be used for general infrastructure improvements throughout the City. • The Housing Fund accounts for the assets of the former Redevelopment Agency's Low and Moderate Income Housing 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. 39 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) • 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 Redevelopment Agency was dissolved as of January 31, 2012 through the Supreme Court decision on Assembly Bill 1X 26. See Note 15 for more information. • 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 Redevelopment Agency was dissolved as of January 31, 2012 through the Supreme Court decision on Assembly Bill 1X 26. See Note 15 for more information. The City reports the following major proprietary funds: • The Sports Complex Fund accounts for personnel and operating costs directly associated with the operation of the baseball facility, which is the home of the Rancho Cucamonga Quakes. • The Municipal Utility Fund accounts for the costs of labor and materials used in the operation, maintenance, construction and consumption of electric services to certain major commercial /industrial developments within the City. 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. • Agency funds are custodial in nature and do not involve the measurement of results of operations. 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-purpose trust funds are used to account for the assets and liabilities of the former Redevelopment Agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former Redevelopment Agency are paid in full and assets have been liquidated. 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. 40 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Amounts reported as program revenues include: 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the Enterprise Funds and of the Internal Service Funds are charges to customers for sales and services. Operating expenses for Enterprises Funds and Internal Service Funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, and then unrestricted resources as they are needed. d. Assets, Liabilities and Net Assets or Equity Cash and Investments All cash and investments, except those that are held by fiscal agents, are held in a City pool. These pooled funds are available upon demand and therefore are considered cash and cash equivalents for purposes of the statement of cash flows. Investments held by fiscal agents with an original maturity of three months or less are 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. 41 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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. 42 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1:Organization and Summary of Significant Accounting Policies (Continued) 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 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. 43 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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 adoption of 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. City Council action to commit fund balance needs to occur within the fiscal reporting period; however the amount can be determined subsequently. Council. Fund balance commitments were as follows: Changes in Economic Circumstances The City's General Fund balance committed for changes in economic circumstances is established at a goal of a six month reserve, or 50% of the City General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for changes in economic circumstances is established at a goal of a six month reserve, or 50% of the Fire District's operating budget for the upcoming fiscal year. As defined in the resolution establishing this commitment, the specific uses are listed as the declaration of a state or federal state of emergency or a local emergency as defined in Rancho Cucamonga Municipal Code Section 2.36.020; or a change in economic circumstances in a given fiscal year that results in revenues to the City/Fire District being insufficient to cover expenditures for one or more fiscal years. The City Council/Fire Board may, by the affirming vote of three members, change the amount of this commitment and/or the specific uses of these monies. City Facilities Capital Repair The City's General Fund balance committed for City facilities capital repair is established at a minimum goal of 25% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for governmental activities. Fire District Facilities Capital Repair The Fire District's fund balance committed for the Fire District facilities capital repair is hereby committed to a minimum goal of 50% of capital assets value comprised of construction in progress (excluding infrastructure), building improvements, and improvements other than building for public safety-fire activities. 44 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Working Capital The City's General Fund balance committed for Working Capital is established at a goal of a minimum of 5% of the City's General Fund operating budget for the upcoming fiscal year. The Fire District's fund balance committed for Working Capital is established at a goal of a minimum of 10% of the District's operating budget for the upcoming fiscal year. Self-Insurance The City's General Fund balance committed 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 is established at a minimum goal of three times the City's total yearly SIR for all types of insurance coverage. Employee Leave Payouts The City's General Fund balance and the Fire District's fund balance committed for employee leave payouts as valued in accordance with the City's labor contracts as of the last day of the fiscal year. PERS Rate Stabilization The City's General Fund and Fire District's fund balance committed to offset projected rate increases identified in the respective annual CalPERS actuarial valuation for two fiscal years after the year of financial reporting. Booking Fees The City's General Fund balance committed to provide funding for an increase in the booking fees charged to the City by the County of San Bernardino not readily determinable at the time of budget adoption due to the delay in the adoption of the State of California's budget. Vehicle and Equipment Replacement The Fire District's fund balance committed for the replacement of fire safety vehicles and equipment as determined based on the District's replacement criteria is established at a minimum goal of 50% of District vehicle and equipment replacement value. Law Enforcement The City's General Fund balance committed for public safety purposes. Contract Development Services The City's General Fund balance committed for contract development services. 45 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) 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. 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. 46 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (Continued) Functional Classifications Expenditures of the governmental funds are classified by function. Functional classifications are defined as follows: • General Government includes legislative activities, City Clerk, City Attorney, City Manager as well as management or supportive services across more than one functional area. • Public Safety- Police includes those activities which involve police protection. • Public Safety - Fire Protection includes activities of the fire protection district which involved in the protection of people and property from fire as well as emergency preparedness. • Public Safety - Animal Center includes those activities which involve animal care and services. • Community Development includes those activities which involve planning and redevelopment, as well as building and safety. • Community Services includes activities which provide recreation, cultural and educational services. • Engineering and Public Works includes all maintenance, engineering and capital improvements which relate to streets, parks, flood control and other public facilities. 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. 47 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 2: Stewardship, Compliance and Accountability(Continued) Basis of Budgeting Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles (GAAP) except that for budgeting purposes only encumbrances are treated as expenditures. A reconciliation has been provided on the applicable schedule when the basis of budgeting differs from GAAP. For the fiscal year 2011-2012, the following funds had no adopted annual budgets: Housing Fund SB 140 Drive, Drink, Lose Grant Henderson/Wardman Drainage Federal Grant Fund — Drier OTS 2005 Seatbelt Grant Senior Transportation Service Used Oil Recylcing Program Assessment District 86-2 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 nonmajor funds have a deficit at June 30, 2012: Special Revenue Funds: California Literacy Program $ 8,202 Proposition 84- Park Bond Act 4,400 Senior Outreach Grant 3,240 Safe Routes to School Program 39,558 Department of Homeland Security Grant 11,128 Homeland Security Grant 2005 73,036 Capital Projects Funds: Assessment District 86-2 41,128 The City expects to eliminate these deficits with anticipated future revenues from grants, deferred payments and reimbursements. 48 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 III. DETAILED NOTES ON ALL FUNDS Note 3: Cash and Investments As of June 30, 2012, cash and investments were reported in the accompanying financial statements as follows: Governmental activities $ 191,695,747 Business-type activities 5,785,069 Fiduciary funds 393,998,178 Total Cash and Investments $ 591,478,994 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, 2012, the carrying amount of the City's deposits was $195,851,732 and the bank balance was $196,975,182. The $1,123,450 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. A provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act provides temporary unlimited deposit insurance coverage for noninterest-bearing transaction account at all FDIC-insured institutions. This provision was effective from December 31, 2010 and will remain effective until December 31, 2012. Noninterest- bearing transaction accounts is defined as an account (1)with respect to which interest is neither accrued nor paid; (2) on which the depositor or account holder is permitted to make withdrawals by negotiable or transferable instrument, payment orders of withdrawal, telephone or other electronic media transfers, or other similar items for the purpose of making payments or transfers to third parties or others; and (3) on which the FDIC-insured depository institutions does not reserve the right to require advance notice of an intended withdrawal. As of June 30, 2012, the City maintains cash deposits that are temporarily covered by this provision. 49 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) Investments Under provision of the City's investment policy, and in accordance with the California Government Code, the following investments are authorized: • U.S. Government Agency Securities • Certificates of Deposit(or Time Deposits) • Negotiable Certificates of Deposit • Banker's Acceptances • Commercial Paper • Local Agency Investment Fund (State Pool) • Deposit of Funds • Repurchase and Investment Agreements Investments Authorized by Debt Agreements The above investments do not address investment of debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. LAIF is overseen by the Local Agency Investment Advisory Board, which consists of five members, in accordance with State statute. The State Treasurer's Office audits the fund annually. The fair value of the position in the investment pool is the same as the value of the pool shares. GASB Statement No. 31 The City adopted GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, as of July 1, 1997. GASB Statement No. 31 establishes fair value standards for investments in participating interest earning investment contracts, external investment pools, equity securities, option contracts, stock warrants and stock rights that have readily determinable fair values. Accordingly, the City reports its investments at fair value in the balance sheet. All investment income, including changes in the fair value of investments, is recognized as revenue in the operating statement. 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, 2012, 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, 2012. All securities were investment grade and were legal under State and City law. As of June 30, 2012, the City's investments in external investment pools and money market mutual funds are unrated. 50 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) 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. As of June 30, 2012, 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, 2012, 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 13.3% Federal Home Loan Bank 13.6% Federal Home Loan Mortgage Corporation 9.2% Federal National Mortgage Association 9.3% 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. 51 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 3: Cash and Investments (Continued) As of June 30, 2012, the City had the following investments and original maturities: Investment Maturities (in Years) 6 months 6 months to 1 year to 3 Years to or less 1 year 3 years 5 years Fair Value Investments: Local Agency Investment Fund $ 54,170,539 $ $ - $ - $ 54,170,539 US Treasury 7,199,862 - - 7,199,862 Federal Governmental Agencies Federal Farm Credit Bank 5,033,900 22,316,140 11,340,300 40,186,769 78,877,109 Federal Home Loan Bank 8,105,840 11,644,035 22,024,355 38,946,338 80,720,568 Federal Home Loan Mortgage Corp. - - 7,033,510 47,272,200 54,305,710 Federal National Mortgage Assoc. - 6,003,840 48,779,881 54,783,721 Municipal Bonds - - 5,173,900 - 5,173,900 Commercial Paper - 1,496,088 - - 1,496,088 Money Market Mutual Funds 26,548,217 - - 26,548,217 Investments with Fiscal Agents: Money Market Mutual Funds 32,351,548 - - - 32,351,548 $ 133,409,906 $ 35,456,263 $ 51,575,905 $ 175,185,188 $ 395,627,262 Note 4: Notes and Loans Receivables Notes and loans receivables consist of the following at June 30, 2012: 1. 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, 2012, the outstanding balance amounts to $3,795,281, including accrued interest of$705,281. Accrued interest is offset by deferred revenue. 2. 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, 2012, the advances paid against this line of credit amount to $40,457,658 and accrued interest amounts to $1,448,961 for a total of $41,906,619. Accrued interest is offset by deferred revenue. 3. 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 52 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 4: Notes and Loans Receivables (Continued) of 56 years (2062). In addition to the extent there are Residual Receipts, the Developer shall pay to the Agency 50% of the Residual Receipts from the preceding year. As of June 30, 2012, advances paid against this line of credit amounts to $21,638,113 and accrued interest amounts to $2,444,132 for a total balance of $24,082,245. Accrued interest is offset by deferred revenue. 4. 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, 2012, the advances paid against this line of credit amounted to $9,000,000 and accrued interest amounts to $1,585,616 for a total of $10,585,616. Accrued interest is offset by deferred revenue. 5. 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, 2012, the advances paid against this line of credit amounted to $6,499,910 and accrued interest amounts to $378,922 for a total of$6,878,832. Accrued interest is offset by deferred revenue. 6. 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, 2012, the advances paid against this line of credit amounted to $1,328,937 and accrued interest amounts to $46,788, for a total of$1,375,725. Accrued interest is offset by deferred revenue. 53 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 4: Notes and Loans Receivables (Continued) 7. 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, 2012, the advances paid against this line of credit amounted to $25,868,857, and accrued interest amounts to $1,773,855, for a total of$27,642,712. 8. 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, 2012, the outstanding balance amounts to $8,953,064, including accrued interest of $3,023,883. Accrued interest is offset by deferred revenue. 9. 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, 2012, the outstanding balance amounts to $4,529,819. 10. First-time homebuyer loans represents the loans made under the First Time Homebuyer's Program. The payment of the loan is not due until the property is sold. As of June 30, 2012, the outstanding balance amounts to $4,284,848. Total loans receivables for governmental activities at June 30, 2012, including accrued interest of$11,407,438, amounted to $134,034,761. 54 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 5: Capital Assets Capital asset activity for the year ended June 30, 2012, was as follows: Transfer to Beginning Successor Ending Balance Increases Decreases Transfers Agency* Balance Governmental Activities: Capital assets,not being depreciated: Land $ 83,645,679 $ $ $ $ (9,103,104) $ 74,542,575 Right of way 231,931,613 231,931,613 Construction-in-progress 32,641,391 22,890,978 (4,124,289) (13,153,837) (5,238,926) 33,015,317 Total Capital Assets, Not Being Depreciated 348,218,683 22,890,978 (4,124,289) (13,153,837) (14,342,030) 339,489,505 Capital assets,being depreciated: Building Improvements 143,558,241 1,645,906 (40,592,574) 104,611,573 Improvement other than buildings 12,564,581 620,812 (492,505) 12,692,888 Equipment and vehicles 35,242,054 1,334,645 (55,955) (10,073,651) 26,447,093 Furniture and fixtures 3,011,131 - (1,393,069) 1,618,062 Infrastructure 425,934,501 (197,073) 13,153,837 - 438,891,265 Intangible 1,372,589 - - (51,974) 1,320,615 Total Capital Assets, Being Depreciated 621,683,097 3,601,363 (253,028) 13,153,837 (52,603,773) 585,581,496 Less accumulated depreciation: Building improvements 28,929,230 3,007,085 - (5,149,819) 26,786,496 Improvement other than buildings 7,400,395 376,861 (58,502) 7,718,754 Equipment and vehicles 26,092,847 2,766,189 (38,540) (7,467,109) 21,353,387 Furniture and fixtures 2,098,182 307,142 (886,798) 1,518,526 Infrastructure 174,127,009 9,665,493 - 183,792,502 Intangible 629,650 101,404 (155) (36,491) 694,408 Total Accumulated Depreciation 239,277,313 16,224,174 (38,695) - (13,598,719) 241,864,073 Total Capital Assets, Being Depreciated,Net 382,405,784 (12,622,811) (214,333) 13,153,837 (39,005,054) 343,717,423 Governmental Activities Capital Assets,Net $ 730,624,467 $ 10,268,167 $ (4,338,622) $ - $ (53,347,084) $ 683,206,928 *As a result of the dissolution of the Redevelopment Agency, capital assets of the former Redevelopment Agency were transferred to the Successor Agency. See Note 16 for disclosures of capital assets of the Successor Agency. 55 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Governmental Activities: General government $ 1,596,639 Public safety-police 454,635 Public safety-fire protection 660,445 Engineering and public works 10,255,319 Community development 1,222,491 Community services 460,324 Vehicle Replacement Fund 1,331,442 Computer Equip./Technology Replacement Fund 242,879 Total Governmental Activities $ 16,224,174 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 382,814 34,915 - 417,729 Furniture and fixtures 82,374 - - 82,374 Infrastructure 16,747,060 - 16,747,060 Intangible 25,856 - - 25,856 Total Capital Assets, Being Depreciated 38,238,991 34,915 - 38,273,906 Less accumulated depreciation: Building improvements 7,753,914 430,073 8,183,987 Improvement other than buildings 3,496,786 189,871 3,686,657 Equipment and vehicles 352,715 7,604 360,319 Furniture and fixtures 38,111 4,511 42,622 Infrastructure 3,597,817 669,882 4,267,699 Intangible 15,033 2,586 17,619 Total Accumulated Depreciation 15,254,376 1,304,527 16,558,903 Total Capital Assets, Being Depreciated, Net 22,984,615 (1,269,612) 21,715,003 Business-Type Activities Capital Assets,Net $ 28,435,630 $ (1,269,612) $ $ 27,166,018 56 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 5: Capital Assets (Continued) Depreciation expense was charged to functions/programs of the primary government as follows: Business-Type Activities: Sports Complex $ 623,683 Municipal Utility 680,844 Total Business-Type Activities $ 1,304,527 Note 6: Interfund Receivable, Payable and Transfers The composition of interfund balances as of June 30, 2012, was as follows: Due To/From Other Funds Due to Other Funds Nonmajor Fire Sports Governmental Funds District Complex Funds Total Due From Other Funds: General Fund $ 276,613 $ 2,186 $ 1,788,680 $ 2,067,479 Due to/from other funds were the results of routine interfund transactions not cleared prior to the end of the fiscal year and were also made to cover negative cash balance at June 30, 2012. Advances To/From Other Funds Advances from Other Funds Nonmajor Fire Governmental Funds District Funds Total Advances to Other Funds: General $ 4,556,198 $ 300,000 $ 4,856,198 The $4,556,198 advance from the General Fund to the Fire District was approved and authorized by the City Council and Board of Directors on June 21,2012. The disbursement occurred on June 25, 2012. The advance was to provide funding for the prepayment of the Fire District's side fund liability with CalPERS. The advance bears interest at 4.5% and is payable in monthly installments of$33,332. The final payment will occur in July 2028. 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). 57 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 6: Interfund Receivable, Payable and Transfers (Continued) Interfund Transfers Transfers Out: Redevelopment Nonmajor General Agency Municipal Governmental Funds Fund Debt Service Utility Funds Total Transfers in: General Fund $ - $ $ 942,400 $ $ 942,400 Fire District 168,860 - 168,860 Redevelopment Agency- Capital Projects - 26,858 26,858 Sport Complex 1,108,510 - 1,108,510 Internal Service Funds 1,745,480 1,745,480 Nonmajor Funds 58,265 - - 83,690 141,955 Total $ 3,081,115 $ 26,858 $ 942,400 $ 83,690 $ 4,134,063 The General Fund transferred $1,108,510 to the Sports Complex to cover the budgeted amount and $168,860 to the Fire District to fund the emergency preparedness program. The Rancho Cucamonga Redevelopment Agency Debt Service Fund transferred $26,858 to the Rancho Cucamonga Redevelopment Agency Capital Project Fund. The Municipal Utility transferred $942,400 to the General Fund to cover the cost of operations. 58 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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, 2012: Adjusted Transfer to Balance Balance Successor Outstanding Due Within July 1,2011 Adjustments— July 1,2009 Additions Repayments Agency" June 30,2012 One Year Bonds: Tax Allocation Refunding Bonds-1999 Issue $ 33,450,000 $ $ 33,450,000 $ $ 2,645,000 $ (30,805,000) $ - $ Tax Allocation Bonds 20011ssue 71,775,000 71,775,000 15,000 (71,760,000) Tax Allocation Bonds 20041ssue 144,810,000 144,810,000 4,070,000 (140,740,000) Tax Allocation Bonds 2007 Issue A&B 145,885,000 145,885,000 2,790,000 (143,095,000) Total Bonds 395,920,000 395,920,000 9,520,000 (386,400,000) Developer Loans: Price Club/Costco 7,687,549 7,687,549 57,242 - (7,744,791) Bank of New York 11,551,263 11,551,263 - 192,900 (11,358,363) Total Developer Loans 19,238,812 19,238,812 57,242 192,900 (19,103,154) Capital Lease 9,997 9,997 - 9,997 Cucamonga Valley Water District-Payment Deferral 161,780 161,780 161,780 - Advances from Successor Agency - 3,953,624 3,953,624 - 3,953,624 Claims and judgments payable 2,841,832 - 2,841,832 2,365,660 1,129,988 4,077,504 1,571,350 Accrued employee benefits 7,606,420 - 7,606,420 4,254,005 4,337,532 7,522,893 4,307,076 Total $ 425,778,841 $ 3,953,624 $ 429,732,465 $ 6,676,907 $15,352,197 $ (405,503,154) $15,554,021 $ 5,878,426 As a result of the dissolution of the Redevelopment Agency, indebtedness of the former redevelopment agency was transferred to the Successor Agency. See Note 16 for disclosures for indebtedness. '"As a result of the dissolution of the Redevelopment Agency, advances to other funds have been reclassified as long term debt due to the Successor Agency. A description of individual components of long-term debt outstanding as of June 30, 2012, is as follows: 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, 2012, the lease was paid off. 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 59 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 7: Long-Term Debt Obligations (Continued) 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 became due and was paid April 30, 2012. As of June 30, 2012, there is no outstanding deferred amount due. Advances from the Successor Agency 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, 2012, the advance was $3,953,624. 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 by the General Fund and the Fire District Fund as it becomes due. 60 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 State of California or any political subdivision thereof, is pledged for the payment of these bonds. The outstanding amounts at June 30, 2012, were as follows: Outstanding Amount at June 30, 2012 City of Rancho Cucamonga: Reassessment District 1999-1 $ 300,000 Assessment District 93-1 1,870,000 Community Facilities District No. 93-3 2,580,000 Community Facilities District No. 88-2 1,575,000 Community Facilities District No.2000-01 658,000 Community Facilities District No.2000-02 5,407,000 Community Facilities District No.2000-03 9,020,000 Community Facilities District No.2001-01 Series A 9,093,000 Community Facilities District No.2001-01 Series B 812,000 Community Facilities District No. 2003-01 Series A 14,345,000 Community Facilities District No.2003-01 Series B 2,790,000 Community Facilities District No.2004-01 38,880,000 Community Facilities District No.2006-01 5,385,000 Community Facilities District No.2006-02 2,755,000 Rancho Cucamonga Redevelopment Agency: Multi-Family Housing Revenue Bond: Series 1997A 2,822,592 Total $ 98,292,592 61 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 12.968%. 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, 2012, the City's annual pension cost of $5,946,465 was equal to the City's required and actual contributions. The required contribution was determined as part of the June 30, 2011, 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, 2011 Actuarial Cost Method Entry Age Normal Cost Method Amortization Method Level Percent of Payroll Average Remaining Period 25 years as of the Valuation Date (Closed Period) Asset Valuation Method 15-Year Smoothed Market Actuarial Assumptions: Investment Rate of Return 7.50% (net of administrative expenses) Projected Salary Increases 3.30% to 14.45% depending on age, service and type of employment Inflation 2.75% Payroll Growth 3.00% Individual Salary Growth A merit scale varying by duration of employment coupled with an assumed annual inflation component of 2.75% and an annual production growth of 0.25%. 62 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 CalPERS. Subsequent plan amendments are amortized as a level percent of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a rolling period, which results in an amortization of about 6% of unamortized gains and losses each year. If the Plan's accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30-year amortization period. Three-Year Trend Information for PERS-City (Amounts in Thousands) Annual Percentage Pension Cost of APC Net Pension Fiscal Year (APC) Contributed Obligations 6/30/2010 $ 5,084 100% $ - 6/30/2011 5,115 100% - 6/30/2012 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 6/30/2009 $ 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 % 6/30/2011 121,597 138,584 (16,987) 87.7 % 27,988 60.7 % 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 16.000% for the non-safety employees and 29.497% for safety employees. The contribution requirements of plan members and the City are established and may be amended by PERS. 63 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 9: Pension Plan Obligations (Continued) Annual Pension Cost(APC) For the year ended June 30, 2012, the Fire District's annual pension cost for the miscellaneous and safety employees of $4,096,982 was equal to the Fire District's required and actual contributions. The required contribution was determined as part of the June 30, 2011, 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 6/30/2010 $ 3,533 100% $ - 6/30/2011 3,603 100% - 6/30/2012 4,097 100% - 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. 64 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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, 2012, the City's annual required contribution was $990,000. The City actually contributed $942,093 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 year period. Annual required contribution (ARC) $ 990,000 Interest in net PARS asset (306,157) Adjustment to ARC 615,472 Annual PARS cost 1,299,315 Contribution made 942,093 Decrease/(Increase) in net PARS asset 357,222 Net PARS obligation (asset) June 30, 2011 (8,747,342) Net PARS obligation (asset)June 30, 2012 $ (8,390,120) The following table provides 3 years of historical information of the Annual Pension Cost: Three-Year Trend Information - PARS Annual Pension Net Pension Cost(APC) Percentage of Obligation (Asset) Year Ending (in Thousands) APC Contributed (in Thousands) 6/30/2010 $ 1,389 100% $ - 6/30/2011 10,201 702% (8,747) 6/30/2012 942 95% (8,390) 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 07/01/2008 $ 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% 07/01/2012 21,930 19,447 (2,483) 112.8% 25,078 -9.9% Actuarial valuation is performed every other year. 65 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 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 CaIPERS 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 2011-2012, premium payments for retiree insurance in the total amount of$817,882 were made to CaIPERS 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) $ 173,000 Interest on net OPEB asset (1,098,072) Adjustment to ARC 1,325,340 Annual OPEB cost 400,268 Contributions made 817,882 Decrease/(Increase) in Net OPEB asset (417,614) Net OPEB obligation (asset)June 30, 2010 (16,893,419) Net OPEB obligation (asset)June 30, 2011 $ (17,311,033) The contribution rate of 1.8% is based on the ARC of $173,000, 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. 66 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 11: Other Post-Employment Benefits (Continued) Three Year Trend Information-OPEB Fiscal Annual Actual Percentage of Net OPEB Year OPEB Contribution Annual OPEB Obligation End Cost (NetofAdjustments) Cost Contributed (Asset) 6/30/2010 $ 1,310,481 $ 15,803,290 1205.9% $ (16,492,809) 6/30/2011 333,749 734,359 220.0% (16,893,419) 6/30/2012 400,268 817,882 204.3% (17,311,033) 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 Actuarial 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, an inflation rate of 3%, projected salary increase of 3.25% 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. 67 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 12: Summary Disclosure of Self-Insurance Contingencies City Disclosure of Self-Insurance Contingencies The City is self-insured for the first $500,000 on each general liability claim and for the first $250,000 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 $20,000,000 and $50,000,000 for general liability and workers' compensation, respectively. Additionally, the City is self-funded for the first $250,000 for employment practices liability claims and purchases coverage for losses ranging from &250,000 to $35,000,000. 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, 2012, 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, 2012, 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. 68 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 12: Summary Disclosure of Self-Insurance Contingencies (Continued) CSAC-EIA publishes its own financial report for the year ended June 30, 2012, 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 2010-2011 $ 2,509,075 $ 1,209,591 $ (876,834) $ 2,841,832 2011-2012 2,841,832 2,365,660 (1,129,988) 4,077,504 Note 13: Commitments and Contingencies The following schedule summarizes the major contractual commitments by funds as of June 30, 2012: General Fund $ 705,114 Citywide Infrastructure Improvement 6,203,232 Fire District 607,842 Nonmajor Governmental Funds 4,958,830 Total $ 12,475,018 Note 14: Fund Balance Restatement Beginning fund balances of the CFD 2001-01 and CFD 2003-01 capital project funds have been restated to reclassify the advances received in prior years from the Redevelopment Agency as a long-term debt of the City due to the Successor Agency. 69 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 15: California Redevelopment Agency Dissolution 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, AB 1X 26 and 27 (California Redevelopment Association v. Matosantos). AB 1X 26 dissolves redevelopment agencies effective October 1, 2011. AB 1X 27 gave 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 amounted to a state-wide total of $1.7 billion. In 2012-13 and subsequent years, the payments totaled $400 million, annually. Each city or county's share of these payments was determined based on its proportionate share of state-wide tax increment. On August 17, 2011 the Supreme Court issued a stay of the implementation of AB 1X 26 and 27 which allowed a redevelopment agency to continue if it adopted an AB 1X 27 ordinance. However, because of the effect of the stay order, the authority for the Redevelopment Agency to engage in most activities was suspended. The Supreme Court heard oral arguments on November 10, 2011 and on December 29, 2011 announced its decision in California Redevelopment Association v. Matosantos. The court upheld AB 1X 26 which dissolves redevelopment agencies, but invalidated in its entirety AB 1X 27 which allowed redevelopment agencies to continue as long as they made the required payments. AB 1X 26 established deadlines for the process of Redevelopment Agency dissolution and the handling of existing obligations. The full text of AB 1X 26 may be obtained from the California legislative information website maintained by the Legislative Counsel of the State of California at: http://www.leginfo.ca.gov/bilinfo.html. As of January 31, 2012 the Redevelopment Agency has been dissolved and the City of Rancho Cucamonga has elected to become the Successor Agency. In conjunction, the Housing fund was designated to receive the transfer of all housing assets and perform the housing functions previously performed by the Redevelopment Agency. The Successor Agency will be responsible for winding down the remaining activities of the dissolved Redevelopment Agency. Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 ("the Bill") that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Rancho Cucamonga that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit. The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "successor agency" to hold the assets until they are distributed to other units of state and local government. On January 11, 2012, the City elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 12-001. After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obligations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments). 70 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of the former redevelopment agency until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The City's position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that would resolve this issue unfavorably to the City. In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the governmental funds of the City. After the date of dissolution, the assets and activities of the dissolved redevelopment agency are reported in a fiduciary fund (private-purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of January 31, 2012 was reported in the private-purpose trust fund as an extraordinary gain (or loss). Because of the different measurement focus of the governmental funds (current financial resources measurement focus) and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements. 71 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled as follows: Total extraordinary loss reported in the governmental funds-increase to net assets of the Succesory Agency Trust Fund $ 315,804,995 Capital assets recorded in the government-wide financial statements- increase to net assets of the Successor Agency Trust Fund 53,347,085 Deferred cost on bond issuance reported in the government-wide financial statements- increase to net assets of the Successor Agency Trust Fund 5,330,449 Disallowed accrued interest of the advances from the City-increase to net assets of the Successor Agency Trust Fund 46,661,300 Long-term debt reported in the government-wide financial statements- decrease to net assets of the Successor Agency Trust Fund (409,847,528) Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers(equal to amount of extraordinary gain reported in the government-wide financial statements of the City) $ 11,296,301 a. Cash and investments Cash and investments reported in the accompanying financial statements consisted of the following: Cash and investments pooled with the City $ 340,188,934 Cash and investments with fiscal agent 20,313,946 $ 360,502,880 b. Loans Receivable Notes and loans receivables consist of the following at June 30, 2012: 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, 2012, no payments have been required, with the outstanding balance remaining at$13,000,000. 72 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) c. Capital Assets An analysis of capital assets as of June 30, 2012, follows: Transferred from former Beginning Redevelopment Balance Agency` Increases Decreases Transfers Ending Balance Capital assets, not being depreciated: Land $ $ 9,103,104 $ - $ $ - $ 9,103,104 Construction-in-progress 5,238,926 1,266,778 (1,315,655) 5,190,049 Total Capital Assets, Not Being Depreciated 14,342,030 1,266,778 (1,315,655) 14,293,153 Capital assets, being depreciated: Building improvements 40,592,574 - 1,315,655 41,908,229 Improvements other than buildings 492,505 - - 492,505 Equipment and vehicles 10,073,651 115,150 10,188,801 Furniture and fixtures 1,393,069 - 1,393,069 Intangible 51,974 - 51,974 Total Capital Assets 52,603,773 115,150 1,315,655 54,034,578 Less Accumulated Depreciation Building improvements 5,149,819 428,740 - 5,578,559 Improvements other than buildings 58,502 10,261 68,763 Equipment and vehicles 7,467,109 295,668 7,762,777 Furniture and fixtures 886,798 102,136 988,934 Intangible 36,491 3,465 39,956 Total Accumulated Depreciation 13,598,719 840,270 - 14,438,989 Total Capital Assets, Being Depreciated 39,005,054 (725,120) 1,315,655 39,595,589 Successor Agency Capital Assets, Net $ $ 53,347,084 $ 541,658 $ $ - $ 53,888,742 *As a result of the dissolution of the Redevelopment Agency, capital assets of the former Redevelopment Agency were transferred to the Successor Agency.See Note 5. 73 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) d. Long-Term Debt The following debts were transferred from the former Redevelopment Agency to the Successor Agency as of February 1, 2012 as a result of the dissolution. A description of long-term debt outstanding (excluding defeased debt) of the Successor Agency as of June 30, 2012, follows: Transferred from the former Balance Redevelopment Outstanding Due Within July 1,2011 Agency" Additions Repayments June 30,2012 One Year Bonds: Tax Allocation Refunding Bonds-1999 Issue $ $ 30,805,000 $ $ $ 30,805,000 $ 2,785,000 Tax Allocation Bonds 2001 Issue 71,760,000 71,760,000 10,000 Tax Allocation Bonds 20041ssue 140,740,000 140,740,000 4,270,000 Tax Allocation Bonds 2007 Issue A&B 143,095,000 143,095,000 2,925,000 Total Bonds 386,400,000 386,400,000 9,990,000 Developer Loans: Price Club/Costco 7,744,791 322,734 135,023 7,932,502 - Bank of New York 11,358,363 - 201,368 11,156,995 429,644 Total Developer Loans 19,103,154 322,734 336,391 19,089,497 429,644 Advances from City 9,521,227 - - 9,521,227 - Total $ $ 415,024,381 $ 322,734 $ 336,391 415,010,724 $ 10,419,644 Unamortized bond premium 4,283,446 Total $ 419,294,170 "As a result of the dissolution of the Redevelopment Agency, long term debts of the former Redevelopment Agency were transferred to the Successor Agency.See Note 7. 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%. 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. 74 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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, 2012, amounted to $30,805,000. The following schedule illustrates the debt service requirements to maturity for the 1999 Tax Allocation Refunding Bonds as of June 30, 2012: Principal Interest 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 2016-2017 3,385,000 899,719 2018-2022 15,445,000 1,673,831 Total $ 30,805,000 $ 7,796,726 75 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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. 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, 2012, amounted to$71,760,000. 76 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) The following schedule illustrates the debt service requirements to maturity for the 2001 Tax Allocation Bonds as of June 30, 2012: Principal Interest 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 2016-2017 15,000 3,716,119 2018-2022 645,000 18,554,344 2023-2027 28,160,000 16,063,528 2028-2032 42,890,000 4,533,831 Total $ 71,760,000 $ 57,739,298 3. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, 2004 Tax Allocation Bonds, $165,680,000. These bonds are dated March 1, 2004, and were issued in order a.) to refund and defease the Agency's $52,225,000 outstanding principal amount Rancho Redevelopment Project 1994 Tax Allocation Refunding Bonds, and b.) to fund redevelopment activities. The issue consists of $109,690,000 Serial Bonds with maturities beginning September 1, 2005 through September 1, 2025, $12,210,000 Term Bonds due September 1, 2028, bearing interest at 4.45% per annum and $43,780,000 Term Bonds due September 1, 2032, bearing interest at 4.50% per annum. Interest is payable semi-annually on March 1 and September 1 of each year commencing September 1, 2004. The Serial Bonds mature in annual installments ranging from $2,950,000 to $10,955,000 starting September 1, 2005 to September 1, 2025, and bearing interest ranging from 2.00% to 5.00%. Bonds maturing on or before September 1, 2014, are not subject to call and redemption prior to their stated maturities. Bonds maturing on or after September 1, 2015, are subject, at the option of the Agency, to redemption in whole or in part, prior to their stated maturities on any date, commencing September 1, 2014. The bonds maturing on September 1, 2028 and September 1, 2032, are subject to mandatory redemption in part from sinking account installments on September 1, 2026 and September 1, 2029, respectively, and on each September 1 thereafter, at a redemption price equal to 100% of the principal amount plus accrued interest, if any, to the redemption date, without premium. The Agency has pledged for the repayment of the Bonds the Tax Revenues which constitute all taxes allocated to the Agency with respect to the Project, pursuant to Article 6 of Chapter 6 (commending with Section 33670) of the Law and Section 16 of Article XVI of the Constitution of the State, or pursuant to other applicable state laws, and as provided in the Redevelopment Plan. Pledged Tax Revenues also do not include that portion of tax revenues derived from the Project Area which are required to be used by the Agency in accordance with the provisions of certain agreements entered into by the Agency. 77 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) The Agency has entered into cooperative agreements with taxing agencies affected by the Redevelopment Project. Such agreements have been entered into with a.) the Chino Basin Municipal Water District, b.) the County of San Bernardino on behalf of the County Free Library and the San Bernardino County Flood Control District, c.) the Cucamonga County Water District, d.)the Foothill Fire Protection District, and e.) various school districts located within the project area. Under the terms of these agreements, the Agency has agreed that certain tax revenues attributable to those areas and which are allocated to the Agency pursuant to Section 33670 (b), shall be pledged by the Agency to make certain cash payments or in lieu of contributions to each affected taxing agency. Such payments are to be made from tax revenues allocated to the Agency. Pledged Tax Revenues also do not include interest income on various funds and accounts created by the series resolutions. Any such investment income is available to the Agency to meet debt service payments on the bonds but is not specifically pledged therefore. The bonds are further secured by a financial guarantee insurance policy in the event of nonpayment of principal and/or interest. The balance at June 30, 2012, amounted to $140,740, plus unamortized bond premium of$3,528,507. The following schedule illustrates the debt service requirements to maturity for the 2004 Tax Allocation Bonds as of June 30, 2012: Principal Interest 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 2016-2017 5,100,000 5,205,490 2018-2022 32,745,000 22,531,163 2023-2027 32,640,000 14,371,845 2028-2032 34,360,000 9,031,570 2033-2037 17,740,000 399,150 Total $ 140,740,000 $ 74,693,603 4. Rancho Cucamonga Redevelopment Agency, Rancho Redevelopment Project, Housing Set-aside Tax Allocation Bonds, Tax Exempt Series 2007A and Taxable Series 2007B. $155,620,000. In November 2007, the Rancho Cucamonga Redevelopment Agency issued $73,305,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Tax-Exempt Series 2007A and $82,315,000 Rancho Redevelopment Project Housing Set-Aside Tax Allocation Bonds Taxable series 2007B to (a) refund and redeem the Agency's outstanding Rancho Redevelopment Project 1996 Housing Set-Aside Tax Allocation Bonds, (b) provide for the refunding and defeasance of the California Statewide Communities Development Authority Multifamily Housing Revenue Bonds, (c) extend set-aside and affordability restriction on 558 units within four apartment projects located in the City of Rancho Cucamonga pursuant to an Extended Affordability Agreement, and (d) finance other low and moderate income housing projects in or of benefit to the Project Area. 78 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) The Series A issue consists of$29,950,000 in Serial bonds with maturities beginning September 1, 2008 through September 1, 2026, bearing interest ranging from 3.25% through 5.0%; and $43,355,000 in Term bonds due September 1, 2034, bearing interest at 5%. The Series B issue consists of $19,675,000 Term bonds due September 1, 2017, bearing interest at 5.529%; and $62,640,000 Term bonds due September 1, 2031, bearing interest at 6.262%. Interest on both Series A and B bonds is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2008. The Series A Bonds maturing on or before September 1, 2017, are not subject to call and redemption prior to maturity. The Series A Bonds maturing on or after September 1, 2018, will be subject to call and redemption prior to maturity at the option of the Agency, on or after September 1, 2017. The Taxable Series B Bonds are subject to optional redemption, on any date prior to their maturity. The 2007 bonds are secured and payable from Tax Revenues on a subordinate basis with respect to a Loan Agreement dated as of December 15, 1997, between the Agency, Northtown Housing Development Corporation and Pacific Life Insurance Company (Loan Payable-Bank of New York) —the Senior Loan. The Indenture does not permit additional senior obligations. The Agency is permitted under the Indenture to incur additional obligations— Parity Bonds—secured by a pledge of Tax Revenues on a parity basis with the pledge of Tax Revenues to the 2007 Bonds. Tax Revenues which secure the 2007 Bonds consist solely of the Housing Set-Aside. The balance at June 30, 2012, amounted to $143,095,000 plus unamortized bond premium of$754,939. Principal Interest 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 2016-2017 3,565,000 7,375,282 2018-2022 20,935,000 32,759,020 2023-2027 27,640,000 26,143,916 2028-2032 44,895,000 15,055,746 2033-2037 33,445,000 2,508,601 Total $ 143,095,000 $ 114,445,092 Developer Loans Payable 1. 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 79 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) 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, 2012, amounted to$7,932,502. 2. 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, 2012, amounted to $11,156,995. The following schedule illustrates the debt service requirements to maturity as of June 30, 2012: Principal Interest 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 2018-2022 3,949,158 3,050,842 2023-2027 4,637,940 962,060 Total $ 11,156,995 $ 8,443,005 Advances from the City During the prior fiscal years, the City of Rancho Cucamonga loaned the Rancho Cucamonga Redevelopment Agency funds for use in financing various projects with interest at 12% per annum. At June 30, 2012, the principal balance on these loans amount to $9,521,227. Pledged Revenue The City pledged, as security for bonds issued, either directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate Income Housing set-aside and pass through allocations) that it receives. The bonds issued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defease previously issued bonds. Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to 80 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the indebtedness incurred by the dissolved redevelopment agency. Total principal and interest remaining on the debt is $641,074,719 with annual debt service requirements as indicated above. For the current year, the total property tax revenue recognized by the City for the payment of indebtedness incurred by the dissolved redevelopment agency was $48,579,263 and the debt service obligation on the bonds was $29,026,336. On June 14, 2012, Moody's Investors Service ("Moody's") downgraded all California tax allocation bonds rated `Baa3' and above. As such, the Bonds' insured rating was downgraded from `A3' to `Ba1' and underlying rating was downgraded from `A3' to `Ba1'. According to Moody's, all California tax allocation bond ratings remain on review for possible withdrawal. e. Insurance The Successor Agency is covered under the City of Rancho Cucamonga's insurance policies. Therefore, the limitation and self-insured retentions applicable to the City also apply to the Successor Agency. Additional information as to coverage and self-insured retentions can be found in Note12. f. Commitments and Contingencies At June 30, 2012, the Successor Agency was involved as a defendant in several lawsuits arising out of the ordinary conduct of its affairs. It is the opinion of management that settlements of these lawsuits, including losses for claims that are incurred but not reported, if any, will not have a material effect on the financial position of the Successor Agency. g. 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, 2012, the Agency made payments totaling $432,266. h. Subsequent Events Assembly Bill 1484 established a requirement for the successor agency to remit to the County auditor-controller three payments as determined by the auditor-controller which consist of a payment to be made in July 2012 for taxing entities' share of December 2011 property tax distribution to redevelopment agency/successor agency, a payment to be made in November 2012 related to Low-Moderate Income Housing Fund Due Diligence 81 CITY OF RANCHO CUCAMONGA NOTES TO FINANCIAL STATEMENTS (CONTINUED) JUNE 30, 2012 Note 16: Successor Agency Trust For Assets of Former Redevelopment Agency(Continued) Review for unencumbered cash, and a payment to be made in April 2013 related to the other Redevelopment Funds Due Diligence Review for unencumbered cash. As of the date of the report, no payment was made in July 2012. In addition, the Low-Moderate Income Housing Due Diligence Review resulted in an amount due of$4,497,473 and the other Redevelopment Funds Due Diligence Review resulted in an amount due of $162,072,431, neither of which have been confirmed by the Department of Finance. Note 17: Subsequent Events Subsequent to June 30, 2012, the City entered into a lease agreement for replacing the City's land management software (Accela) in the amount of approximately$2 million to be paid over five years. The City also entered into capital leases to aquire a Dell blade servers and Xerox copiers. 82 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. Community Development Block Grant Fund - Established to account for grants received from the Department of Housing and Urban Development. These revenues must be expended to accomplish one of the following objectives: elimination of slum or blight; or benefit to low and moderate income persons by providing loans and grants to owner-occupants and rental property owners to rehabilitate residential properties. Assessment Administration Fund - Established to account for the revenue and disbursement of administration of assessment districts. San Sevaine/Etiwanda Drainage Fund — Established to account for Development Impact fees collected in the San Sevaine/Etiwanda Drainage Assessment District for the construction of regional and mainline flood control projects in that district. SIB 140 Fund - Established to account for the revenue and disbursement of State matching funds for the construction of eligible street construction projects. 83 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. Proposition 84 — Park Bond Act Fund- Prop 84 provides state funding, on a competitive basis, to local governments for the creation of new parks and recreation opportunities. The Statewide Park Program legislation requires projects to meet six eligibility requirements. The fund was established to account for the financial activities associated with the design and construction of the neighborhood park in southwest Rancho Cucamonga. Asset Forfeiture Fund - Established to account for the funds received from the Federal and State government for the equitable transfer of forfeited property and cash in which the City directly participates in the law enforcement efforts leading to the seizure and forfeiture of the property. Used Oil Recycling Grant Fund - In 1991, the Legislature passed AB 2076, the California Oil Recovery Enhancement Act. The act requires oil manufacturers to pay $0.04 to the California Integrated Waste Management Board for each quart of lubricating oil sold in the State of California. These grant funds are available to governmental agencies, based on population, for the purpose of establishing and administering used oil collection programs. These funds must be used expressly for oil recycling collection and educational programs. COPS Program Grant Fund - Established to account for a grant awarded as the result of the approval of State Assembly Bill 3229. The grant is a one-year award with no matching fund requirements. 84 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. 85 CITY OF RANCHO CUCAMONGA Non-Major Governmental Funds Special Revenue Funds (Continued) 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. CA State Library Staff Innovation Grant Fund —This fund was established to account for the grant money awarded by California State Library. The purpose of the grant is to provide training for innovative writing skills for future grant writers. 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 SecuritV 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. 86 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. Used Oil Recycling Program - The California Integrated Waste Management allocates funding to governmental agencies on a population basis. The fund was established to administer the used oil collection programs. The fund must be used specifically for oil recycling collection and educational programs. 87 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. 88 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. 89 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Park Gas Tax Recreation Development Beautification Assets: Cash and investments $ 5,154,330 $ 2,337,155 $ 11,508,273 $ 1,007,026 Receivables: Accounts 490,829 12,381 - - Taxes - - - - Accrued interest 3,779 1,739 9,078 788 Deferred loans - - - - Grants - - - - Prepaid costs - 16,479 - - Deposits - 11,922 - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,648,938 $ 2,379,676 $ 11,517,351 $ 1,007,814 Liabilities and Fund Balances: Liabilities: Accounts payable $ 80,915 $ 311,447 $ 257,286 $ 21,264 Accrued liabilities 29,662 94,713 3,099 937 Deferred revenues - - - - Unearned revenues - 62,893 - 93,407 Due to other governments - - - - Due to other funds - - - - Due to Successor Agency - - - - Advances from other funds - - 300,000 - Total Liabilities 110,577 469,053 560,385 115,608 Fund Balances: Nonspendable: Prepaid costs - 16,479 - - Deposits - 11,922 - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - 10,956,966 - Parks and recreation - 1,882,222 - - Engineering and public works 5,538,361 - - 892,206 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 5,538,361 1,910,623 10,956,966 892,206 Total Liabilities and Fund Balances $ 5,6489938 $ 2,379,676 $ 11,517,351 $ 1,007,814 90 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Assets: Cash and investments $ 5,989,638 $ 13,289,994 $ 17,956,430 $ - Receivables: Accounts 65 7,042 - - Taxes 19,384 86,498 - - Accrued interest 4,723 10,586 14,120 - Deferred loans - - - - Grants - - - - Prepaid costs - 63 - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 6,013,810 $ 13,394,183 $ 17,970,550 $ - Liabilities and Fund Balances: Liabilities: Accounts payable $ 298,331 $ 500,873 $ 192,412 $ - Accrued liabilities 6,760 82,986 6,887 - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds 87,462 - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 392,553 583,859 199,299 - Fund Balances: Nonspendable: Prepaid costs - 63 - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - 17,771,251 - Capital improvement projects - - - - Street lighting 5,621,257 - - - Landscape maintenance - 12,810,261 - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 5,621,257 12,810,324 17,771,251 - Total Liabilities and Fund Balances $ 6,0139810 $ 13,394,183 $ 17,970,550 $ - 91 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Assets: Cash and investments $ 91,939 $ 1,130,814 $ 1,176,706 $ 36,905 Receivables: Accounts - 38 - - Taxes - - - - Accrued interest - 914 920 - Deferred loans 653,492 - - - Grants 451,587 - - - Prepaid costs - - - - Deposits - - - - Land held for resale 1,076,211 - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,273,229 $ 1,131,766 $ 1,177,626 $ 36,905 Liabilities and Fund Balances: Liabilities: Accounts payable $ 41,027 $ 10,074 $ - $ - Accrued liabilities 7,265 17,262 - - Deferred revenues 451,587 - - - Unearned revenues - - - - Due to other governments 653,492 - - - Due to other funds 483,685 - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 1,637,056 27,336 - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale 1,076,211 - - - Restricted for: Public safety-police - - - - Community development projects - 1,104,430 - - Parks and recreation - - - - Engineering and public works - - - 36,905 Capital improvement projects - - 1,177,626 - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned (440,038) - - - Total Fund Balances 636,173 1,104,430 1,177,626 36,905 Total Liabilities and Fund Balances $ 2,273,229 $ 1,131,766 $ 1,177,626 $ 36,905 92 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Assets: Cash and investments $ 630,112 $ 301,970 $ 482,182 $ 9,549 Receivables: Accounts - - - - Taxes - - - - Accrued interest 536 237 381 971 Deferred loans - - - - Grants 52,077 - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - 290,293 Total Assets $ 682,725 $ 302,207 $ 482,563 $ 300,813 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 2,109 $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues 37,114 - - - Due to other governments - - - - Due to other funds - - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 37,114 - 2,109 - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects 645,611 - - - Parks and recreation - - - - Engineering and public works - 302,207 480,454 - Capital improvement projects - - - 300,813 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 645,611 302,207 480,454 300,813 Total Liabilities and Fund Balances $ 682,725 $ 302,207 $ 482,563 $ 300,813 93 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds California Proprosition Library Literacy 84-Park Bond Measure I Services Program Act Assets: Cash and investments $ 5,337,155 $ 5,781,983 $ - $ - Receivables: Accounts 166,202 - - - Taxes - 1,044,297 - - Accrued interest 4,010 4,654 - - Deferred loans - - - - Grants - - - - Prepaid costs - 44,754 - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 5,507,367 $ 6,875,688 $ - $ - Liabilities and Fund Balances: Liabilities: Accounts payable $ 288,279 $ 57,286 $ 14 $ - Accrued liabilities 5,623 76,651 713 - Deferred revenues - 326 - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - 7,475 4,400 Due to Successor Agency - 98,005 - - Advances from other funds - - - - Total Liabilities 293,902 232,268 8,202 4,400 Fund Balances: Nonspendable: Prepaid costs - 44,754 - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works 5,213,465 - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - 6,598,666 - - Underground utilities - - - - Unassigned - - (8,202) (4,400) Total Fund Balances 5,213,465 6,643,420 (8,202) (4,400) Total Liabilities and Fund Balances $ 5,507,367 $ 6,875,688 $ - $ - 94 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds Used Oil Asset Recycling COPS Drainage Forfeiture Grant Program Grant Facilities Assets: Cash and investments $ 564,739 $ 50,993 $ 192,957 $ 5,220,802 Receivables: Accounts - - - - Taxes - - - - Accrued interest 117 - - 4,104 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 564,856 $ 50,993 $ 192,957 $ 5,224,906 Liabilities and Fund Balances: Liabilities: Accounts payable $ 1,936 $ - $ - $ 658,515 Accrued liabilities - - - 2,895 Deferred revenues - - - - Unearned revenues - 50,850 - 5,102 Due to other governments - - - - Due to other funds - - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 1,936 50,850 - 666,512 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police 562,920 - 192,957 - Community development projects - - - - Parks and recreation - - - - Engineering and public works - 143 - 4,558,394 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 562,920 143 192,957 4,558,394 Total Liabilities and Fund Balances $ 564,856 $ 50,993 $ 192,957 $ 5,224,906 95 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Library Energy Services & Litter Efficient& CA State Technologies Reduction Conservation Library Act Grant Block Grant Assets: Cash and investments $ 21,076 $ 47,777 $ 77,246 $ 36,129 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - - Deferred loans - - - 466,520 Grants - - - 2,523 Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 21,076 $ 47,777 $ 77,246 $ 505,172 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 806 $ - Accrued liabilities 1,480 1,261 - 765 Deferred revenues - - - 2,523 Unearned revenues - - 75,987 - Due to other governments - - - 466,520 Due to other funds - - - 28,971 Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 1,480 1,261 76,793 498,779 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - 453 6,393 Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services 19,596 46,516 - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 19,596 46,516 453 6,393 Total Liabilities and Fund Balances $ 21,076 $ 47,777 $ 77,246 $ 505,172 96 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds Senior Safe Routes to Outreach Undergound School Foothill Blvd. Grant Utilities Program Maintenance Assets: Cash and investments $ - $ 10,686,157 $ - $ 53,445 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 4,061 - - Deferred loans - - - - Grants 3,240 - 39,054 - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 3,240 $ 10,690,218 $ 39,054 $ 53,445 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 1,932 $ - Accrued liabilities - - 1,437 731 Deferred revenues 3,240 - 39,054 - Unearned revenues - - - - Due to other governments - - - - Due to other funds 3,240 - 36,189 - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 6,480 - 78,612 731 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - 52,714 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - 10,690,218 - - Unassigned (3,240) - (39,558) - Total Fund Balances (3,240) 10,690,218 (39,558) 52,714 Total Liabilities and Fund Balances $ 3,240 $ 10,690,218 $ 39,054 $ 53,445 97 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds CA State COPS Secure Library Staff our School Innovation The Big Read Drink, Drive, Grant Fund Grant Library Grant Lose Grant Assets: Cash and investments $ 58,945 $ 95,231 $ 14,425 $ 15,441 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 82 - - Deferred loans - - - - Grants 4,671 - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 63,616 $ 95,313 $ 14,425 $ 15,441 Liabilities and Fund Balances: Liabilities: Accounts payable $ 4,683 $ 6,540 $ - $ - Accrued liabilities - 1,311 120 - Deferred revenues - - - - Unearned revenues 2,986 70,434 4,227 13,574 Due to other governments - - - - Due to other funds 55,267 - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 62,936 78,285 4,347 13,574 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police 680 - - 1,867 Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - 17,028 10,078 - Underground utilities - - - - Unassigned - - - - Total Fund Balances 680 17,028 10,078 1,867 Total Liabilities and Fund Balances $ 63,616 $ 95,313 $ 14,425 $ 15,441 98 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds Department of Public Henderson/ Homeland Resource Proposition Wardman Security Grant Grants 1 B Drainage Assets: Cash and investments $ - $ 105,415 $ 232,702 $ 812,938 Receivables: Accounts - 17,358 - - Taxes - - - - Accrued interest - - 183 - Deferred loans - - - - Grants 11,082 13,197 - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 11,082 $ 135,970 $ 232,885 $ 812,938 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 17,404 $ - $ - Accrued liabilities 429 5,369 - - Deferred revenues 11,082 29,723 - - Unearned revenues - - - - Due to other governments - - - - Due to other funds 10,699 - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 22,210 52,496 - - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - 83,474 - - Parks and recreation - - - - Engineering and public works - - 232,885 812,938 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned (11,128) - - - Total Fund Balances (11,128) 83,474 232,885 812,938 Total Liabilities and Fund Balances $ 11,082 $ 135,970 $ 232,885 $ 812,938 99 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Special Revenue Funds Proposition 42 Integrated -Traffic Justice Waste Federal Grant Congestion Assistance Management Fund -Dreier Relief Grant Assets: Cash and investments $ 2,695,818 $ 13,624 $ 1,869,990 $ 254,466 Receivables: Accounts 50 - - - Taxes 250,831 - - - Accrued interest 2,208 - 1,474 134 Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 2,948,907 $ 13,624 $ 1,871,464 $ 254,600 Liabilities and Fund Balances: Liabilities: Accounts payable $ 198,508 $ 13,545 $ 462,392 $ - Accrued liabilities 22,527 - - - Deferred revenues - - - - Unearned revenues - - - 245,559 Due to other governments - - - - Due to other funds - - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 221,035 13,545 462,392 245,559 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - 9,041 Community development projects - - - - Parks and recreation - 79 - - Engineering and public works 2,727,872 - 1,409,072 - Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 2,727,872 79 1,409,072 9,041 Total Liabilities and Fund Balances $ 2,948,907 $ 13,624 $ 1,871,464 $ 254,600 100 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Special Revenue Funds OTS 2005 Senior Homeland Used Oil State Seatbelt Transportation Security Grant Recycling Grant Service 2005 Program Assets: Cash and investments $ 34 $ 64 $ - $ 16,085 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - - 16 Deferred loans - - - - Grants - - 73,070 - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 34 $ 64 $ 73,070 $ 16,101 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ 79 $ 14,310 Accrued liabilities - - - 1,311 Deferred revenues - - 73,070 - Unearned revenues - - - 99 Due to other governments - - - - Due to other funds - - 72,957 - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities - - 146,106 15,720 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police 34 - - - Community development projects - - - - Parks and recreation - 64 - - Engineering and public works - - - 381 Capital improvement projects - - - - Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - (73,036) - Total Fund Balances 34 64 (73,036) 381 Total Liabilities and Fund Balances $ 34 $ 64 $ 73,070 $ 16,101 101 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Capital Projects Funds CFD 2000-01 Assessment Assessment Assessment South District 82-1 District 84-1 District 86-2 Etiwanda Assets: Cash and investments $ 12,638 $ 1,080,640 $ - $ 63 Receivables: Accounts - - - - Taxes - - - - Accrued interest 9 850 - - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 12,647 $ 1,081,490 $ - $ 63 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - 41,128 - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities - - 41,128 - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 12,647 1,081,490 - 63 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - (41,128) - Total Fund Balances 12,647 1,081,490 (41,128) 63 Total Liabilities and Fund Balances $ 12,647 $ 1,081,490 $ - $ 63 102 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 (Continued) Capital Projects Funds CFD 2000-02 Rancho CFD 2000-03 Cucamonga Rancho CFD 2003-01 Corporate Park Summit CFD 2001-01 Project Fund Assets: Cash and investments $ - $ 19,200 $ 476,603 $ 5,604 Receivables: Accounts - - - - Taxes - - - - Accrued interest - - 374 - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents 399,964 143,876 - 169,301 Total Assets $ 399,964 $ 163,076 $ 476,977 $ 174,905 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ - $ - $ 26,019 Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues - - - - Due to other governments - - - - Due to other funds - - - - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities - - - 26,019 Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 399,964 163,076 476,977 148,886 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 399,964 163,076 476,977 148,886 Total Liabilities and Fund Balances $ 399,964 $ 163,076 $ 476,977 $ 174,905 103 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Capital Projects Funds Public Library CFD 2004-01 CFD 2006-01 Bond Act- Rancho CFD 2003-01 Vintner's 2000 Etiwanda Cultural Center Grove Assets: Cash and investments $ 818,993 $ 4,908 $ - $ 1,806 Receivables: Accounts - - - - Taxes - - - - Accrued interest - 3 - - Deferred loans - - - - Grants - - - - Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted assets: Cash and investments with fiscal agents - 944,553 184,643 606,688 Total Assets $ 818,993 $ 949,464 $ 184,643 $ 608,494 Liabilities and Fund Balances: Liabilities: Accounts payable $ 6,128 $ - $ 4,848 $ - Accrued liabilities - - - - Deferred revenues - - - - Unearned revenues 26,526 - - - Due to other governments - - - - Due to other funds 781,424 - 175,783 - Due to Successor Agency - - - - Advances from other funds - - - - Total Liabilities 814,078 - 180,631 - Fund Balances: Nonspendable: Prepaid costs - - - - Deposits - - - - Land held for resale - - - - Restricted for: Public safety-police - - - - Community development projects - - - - Parks and recreation - - - - Engineering and public works - - - - Capital improvement projects 4,915 949,464 4,012 608,494 Street lighting - - - - Landscape maintenance - - - - Library services - - - - Underground utilities - - - - Unassigned - - - - Total Fund Balances 4,915 949,464 4,012 608,494 Total Liabilities and Fund Balances $ 818,993 $ 949,464 $ 184,643 $ 608,494 104 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2012 Capital Projects Fund CFD 2006-02 Total Nonmajor Amador on Governmental Route 66 Funds Assets: Cash and investments $ 5,854 $ 97,784,969 Receivables: Accounts - 693,965 Taxes - 1,401,010 Accrued interest 4 71,055 Deferred loans - 1,120,012 Grants - 650,501 Prepaid costs - 61,296 Deposits - 11,922 Land held for resale - 1,076,211 Restricted assets: Cash and investments with fiscal agents 1,963 2,741,281 Total Assets $ 7,821 $ 105,612,222 Liabilities and Fund Balances: Liabilities: Accounts payable $ - $ 3,478,962 Accrued liabilities - 372,194 Deferred revenues - 610,605 Unearned revenues - 688,758 Due to other governments - 1,120,012 Due to other funds - 1,788,680 Due to Successor Agency - 98,005 Advances from other funds - 300,000 Total Liabilities - 8,457,216 Fund Balances: Nonspendable: Prepaid costs - 61,296 Deposits - 11,922 Land held for resale - 1,076,211 Restricted for: Public safety-police - 767,499 Community development projects - 12,797,327 Parks and recreation - 1,882,365 Engineering and public works - 40,029,248 Capital improvement projects 7,821 5,336,248 Street lighting - 5,621,257 Landscape maintenance - 12,810,261 Library services - 6,691,884 Underground utilities - 10,690,218 Unassigned - (620,730) Total Fund Balances 7,821 97,155,006 Total Liabilities and Fund Balances $ 7,821 $ 105,612,222 105 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds Park Gas Tax Recreation Development Beautification Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 4,952,710 15,000 - - Charges for services - 2,817,880 - - Use of money and property 72,962 866,222 142,946 12,463 Contributions - 452,079 - - Developer participation - - 235,953 60,078 Miscellaneous 5,568 150,527 - - Total Revenues 5,031,240 4,301,708 378,899 72,541 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - 202,432 - Community services - 4,152,477 - - Engineering and public works 2,395,100 - - 70,864 Capital outlay 1,129,435 - 793,162 40,841 Debt service: Principal retirement 9,997 - - - Interest and fiscal charges 241 - - - Total Expenditures 3,534,773 4,152,477 995,594 111,705 Excess(Deficiency)of Revenues Over(Under) Expenditures 1,496,467 149,231 (616,695) (39,164) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 1,496,467 149,231 (616,695) (39,164) Fund Balances: Beginning of year, as originally reported 4,041,894 1,761,392 11,573,661 931,370 Restatements - - - - Beginning of year, as restated 4,041,894 1,761,392 11,573,661 931,370 Net Change in Fund Balances 1,496,467 149,231 (616,695) (39,164) End of Year $ 5,538,361 $ 1,910,623 $ 10,956,966 $ 892,206 106 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Special Revenue Funds Landscape Lighting Maintenance Pedestrian Districts Districts Transportation Grant Revenues: Taxes $ 2,104,650 $ 9,932,718 $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Use of money and property 75,539 226,117 223,382 (861) Contributions - - - - Developer participation 2,931 - 1,047,378 - Miscellaneous - 1,256 - - Total Revenues 2,183,120 10,160,091 1,270,760 (861) Expenditures: Current: General government 2,296,621 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - 9,394,514 - - Community services - - - - Engineering and public works - - 925,341 - Capital outlay 402,608 95,325 708,767 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,699,229 9,489,839 1,634,108 - Excess(Deficiency)of Revenues Over(Under) Expenditures (516,109) 670,252 (363,348) (861) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (516,109) 670,252 (363,348) (861) Fund Balances: Beginning of year, as originally reported 6,137,366 12,140,072 18,134,599 861 Restatements - - - - Beginning of year, as restated 6,137,366 12,140,072 18,134,599 861 Net Change in Fund Balances (516,109) 670,252 (363,348) (861) End of Year $ 5,621,257 $ 12,810,324 $ 17,771,251 $ - 107 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds Community San Sevaine/ Development Assessment Etiwanda Block Grant Administration Drainage SB 140 Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 1,133,101 - - - Charges for services - - -Use of money and property 533 15,104 15,835 (18) Contributions - - - - Developer participation - - 128,793 - Miscellaneous 16,780 856,770 - - Total Revenues 1,150,414 871,874 144,628 (18) Expenditures: Current: General government - 875,790 - - Public safety-police - - - - Public safety-fire protection - - - - Community development 418,286 - - - Community services - - - - Engineering and public works - - - - Capital outlay 797,432 - 57,750 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,215,718 875,790 57,750 - Excess(Deficiency)of Revenues Over(Under) Expenditures (65,304) (3,916) 86,878 (18) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (65,304) (3,916) 86,878 (18) Fund Balances: Beginning of year, as originally reported 701,477 1,108,346 1,090,748 36,923 Restatements - - - - Beginning of year, as restated 701,477 1,108,346 1,090,748 36,923 Net Change in Fund Balances (65,304) (3,916) 86,878 (18) End of Year $ 636,173 $ 1,104,430 $ 1,177,626 $ 36,905 108 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Special Revenue Funds South Lower Masi Air Quality Etiwanda Etiwanda Commerce Improvement Drainage Drainage Center Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 279,694 - - - Charges for services - - - - Use of money and property 8,700 3,624 6,073 159 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 288,394 3,624 6,073 159 Expenditures: Current: General government 133,134 - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay 146,696 45,670 16,241 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 279,830 45,670 16,241 - Excess(Deficiency)of Revenues Over(Under) Expenditures 8,564 (42,046) (10,168) 159 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 8,564 (42,046) (10,168) 159 Fund Balances: Beginning of year, as originally reported 637,047 344,253 490,622 300,654 Restatements - - - - Beginning of year, as restated 637,047 344,253 490,622 300,654 Net Change in Fund Balances 8,564 (42,046) (10,168) 159 End of Year $ 645,611 $ 302,207 $ 480,454 $ 300,813 109 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds California Proprosition Library Literacy 84-Park Bond Measure I Services Program Act Revenues: Taxes $ - $ 2,880,454 $ - $ - Licenses and permits - - - - Intergovernmental 2,272,270 7,038 - - Charges for services - 395,334 - - Use of money and property 67,932 78,353 (21) (23) Contributions - 125,000 15,000 - Developer participation - - - - Miscellaneous - 53,489 - - Total Revenues 2,340,202 3,539,668 14,979 (23) Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - 3,727,057 100,625 - Engineering and public works 1,171,703 - - - Capital outlay 717,547 - - 4,377 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 1,889,250 3,727,057 100,625 4,377 Excess(Deficiency)of Revenues Over(Under) Expenditures 450,952 (187,389) (85,646) (4,400) Other Financing Sources(Uses): Transfers in - - 83,690 - Transfers out - (83,690) - - Total Other Financing Sources (Uses) - (83,690) 83,690 - Net Change in Fund Balances 450,952 (271,079) (1,956) (4,400) Fund Balances: Beginning of year, as originally reported 4,762,513 6,914,499 (6,246) - Restatements - - - - Beginning of year, as restated 4,762,513 6,914,499 (6,246)Net Change in Fund Balances 450,952 (271,079) (1,956) (4,400) End of Year $ 5,213,465 $ 6,643,420 $ (8,202) $ (4,400) 110 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Special Revenue Funds Used Oil Asset Recycling COPS Drainage Forfeiture Grant Program Grant Facilities Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 64,990 12,520 167,091 - Charges for services - - - - Use of money and property 1,731 38 (547) 70,301 Contributions - - - - Developer participation - - - 722,341 Miscellaneous - - - - Total Revenues 66,721 12,558 166,544 792,642 Expenditures: Current: General government - - - - Public safety-police 43,962 - 170,019 - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - 12,520 - 240,729 Capital outlay 33,182 - - 809,800 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 77,144 12,520 170,019 1,050,529 Excess(Deficiency)of Revenues Over(Under) Expenditures (10,423) 38 (3,475) (257,887) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (10,423) 38 (3,475) (257,887) Fund Balances: Beginning of year, as originally reported 573,343 105 196,432 4,816,281 Restatements - - - - Beginning of year, as restated 573,343 105 196,432 4,816,281 Net Change in Fund Balances (10,423) 38 (3,475) (257,887) End of Year $ 562,920 $ 143 $ 192,957 $ 4,558,394 111 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds Library Energy Services& Litter Efficient& CA State Technologies Reduction Conservation Library Act Grant Block Grant Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 39,858 32,450 23,221 1,179,356 Charges for services - - - - Use of money and property (426) 133 409 214 Contributions - 10,000 - - Developer participation - - - - Miscellaneous - - - 8,798 Total Revenues 39,432 42,583 23,630 1,188,368 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - 19,510 Community services 61,887 19,748 - - Engineering and public works - - 23,221 - Capital outlay - - - 1,133,606 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 61,887 19,748 23,221 1,153,116 Excess(Deficiency)of Revenues Over(Under) Expenditures (22,455) 22,835 409 35,252 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (22,455) 22,835 409 35,252 Fund Balances: Beginning of year, as originally reported 42,051 23,681 44 (28,859) Restatements - - - - Beginning of year, as restated 42,051 23,681 44 (28,859) Net Change in Fund Balances (22,455) 22,835 409 35,252 End of Year $ 19,596 $ 46,516 $ 453 $ 6,393 112 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Special Revenue Funds Senior Safe Routes to Outreach Undergound School Foothill Blvd. Grant Utilities Program Maintenance Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 4,084 - - - Charges for services - 344,549 - - Use of money and property - 233,652 (215) (280) Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 4,084 578,201 (215) (280) Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services 6,129 - - - Engineering and public works - 31,850 39,022 37,447 Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 6,129 31,850 39,022 37,447 Excess(Deficiency)of Revenues Over(Under) Expenditures (2,045) 546,351 (39,237) (37,727) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (2,045) 546,351 (39,237) (37,727) Fund Balances: Beginning of year, as originally reported (1,195) 10,143,867 (321) 90,441 Restatements - - - - Beginning of year, as restated (1,195) 10,143,867 (321) 90,441 Net Change in Fund Balances (2,045) 546,351 (39,237) (37,727) End of Year $ (3,240) $ 10,690,218 $ (39,558) $ 52,714 113 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds CA State COPS Secure Library Staff our School Innovation The Big Read Drink, Drive, Grant Fund Grant Library Grant Lose Grant Revenues: Taxes $ - $ 13 $ - $ - Licenses and permits - - - - Intergovernmental 67,314 103,776 1,049 - Charges for services - - -Use of money and property 679 2,053 (19) (7) Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 67,993 105,842 1,030 (7) Expenditures: Current: General government - - - - Public safety-police 116,528 - - - Public safety-fire protection - - - - Community development - - - - Community services - 80,814 1,049 - Engineering and public works - - - - Capital outlay - 8,000 - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 116,528 88,814 1,049 - Excess(Deficiency)of Revenues Over(Under) Expenditures (48,535) 17,028 (19) (7) Other Financing Sources(Uses): Transfers in 58,265 - - - Transfers out - - - - Total Other Financing Sources (Uses) 58,265 - - - Net Change in Fund Balances 9,730 17,028 (19) (7) Fund Balances: Beginning of year, as originally reported (9,050) - 10,097 1,874 Restatements - - - - Beginning of year, as restated (9,050) - 10,097 1,874 Net Change in Fund Balances 9,730 17,028 (19) (7) End of Year $ 680 $ 17,028 $ 10,078 $ 1,867 114 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Special Revenue Funds Department of Public Henderson/ Homeland Resource Proposition Wardman Security Grant Grants 1 B Drainage Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 121,159 1,000 - - Charges for services - - - - Use of money and property (47) (205) 2,796 (256) Contributions - 117,492 - - Developer participation - - - - Miscellaneous - 447 - - Total Revenues 121,112 118,734 2,796 (256) Expenditures: Current: General government - 143,310 - - Public safety-police - - - - Public safety-fire protection 129,786 - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - - - - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 129,786 143,310 - - Excess(Deficiency)of Revenues Over(Under) Expenditures (8,674) (24,576) 2,796 (256) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (8,674) (24,576) 2,796 (256) Fund Balances: Beginning of year, as originally reported (2,454) 108,050 230,089 813,194 Restatements - - - - Beginning of year, as restated (2,454) 108,050 230,089 813,194 Net Change in Fund Balances (8,674) (24,576) 2,796 (256) End of Year $ (11,128) $ 83,474 $ 232,885 $ 812,938 115 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Special Revenue Funds Proposition 42 Integrated -Traffic Justice Waste Federal Grant Congestion Assistance Management Fund -Dreier Relief Grant Revenues: Taxes $ - $ - $ - $ - Licenses and permits 925 - - - Intergovernmental - - - - Charges for services 1,106,493 - -Use of money and property 28,964 (7) 21,291 2,497 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 1,136,382 (7) 21,291 2,497 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works 980,881 - - - Capital outlay 1,262,748 - 623,506 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures 2,243,629 - 623,506 - Excess(Deficiency)of Revenues Over(Under) Expenditures (1,107,247) (7) (602,215) 2,497 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (1,107,247) (7) (602,215) 2,497 Fund Balances: Beginning of year, as originally reported 3,835,119 86 2,011,287 6,544 Restatements - - - - Beginning of year, as restated 3,835,119 86 2,011,287 6,544 Net Change in Fund Balances (1,107,247) (7) (602,215) 2,497 End of Year $ 2,727,872 $ 79 $ 1,409,072 $ 9,041 116 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Special Revenue Funds OTS 2005 Senior Homeland Used Oil State Seatbelt Transportation Security Grant Recycling Grant Service 2005 Program Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 5,952 - 56,348 56,776 Charges for services - - - - Use of money and property 34 - 35 381 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 5,986 - 56,383 57,157 Expenditures: Current: General government - - - - Public safety-police - - 2,975 - Public safety-fire protection - - - - Community development - - - 48,776 Community services - - - - Engineering and public works - - - - Capital outlay - - 51,503 8,000 Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - - 54,478 56,776 Excess(Deficiency)of Revenues Over(Under) Expenditures 5,986 - 1,905 381 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 5,986 - 1,905 381 Fund Balances: Beginning of year, as originally reported (5,952) 64 (74,941) - Restatements - - - - Beginning of year, as restated (5,952) 64 (74,941)Net Change in Fund Balances 5,986 - 1,905 - End of Year $ 34 $ 64 $ (73,036) $ 381 117 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Capital Projects Funds CFD 2000-01 Assessment Assessment Assessment South District 82-1 District 84-1 District 86-2 Etiwanda Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - -Use of money and property 140 14,162 - 3 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 140 14,162 - 3 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 - - - 91,958 Total Expenditures - - - 91,958 Excess(Deficiency)of Revenues Over(Under) Expenditures 140 14,162 - (91,955) Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 140 14,162 - (91,955) Fund Balances: Beginning of year, as originally reported 12,507 1,067,328 (41,128) 92,018 Restatements - - - - Beginning of year, as restated 12,507 1,067,328 (41,128) 92,018 Net Change in Fund Balances 140 14,162 - (91,955) End of Year $ 12,647 $ 1,081,490 $ (41,128) $ 63 118 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 (Continued) Capital Projects Funds CFD 2000-02 Rancho CFD 2000-03 Cucamonga Rancho CFD 2003-01 Corporate Park Summit CFD 2001-01 Project Fund Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental - - - - Charges for services - - - - Use of money and property - 9 6,252 8 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues - 9 6,252 8 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 181,427 - 18,151 - Total Expenditures 181,427 - 18,151 - Excess(Deficiency)of Revenues Over(Under) Expenditures (181,427) 9 (11,899) 8 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances (181,427) 9 (11,899) 8 Fund Balances: Beginning of year, as originally reported 581,391 163,067 (2,071,532) (1,244,338) Restatements - - 2,560,408 1,393,216 Beginning of year, as restated 581,391 163,067 488,876 148,878 Net Change in Fund Balances (181,427) 9 (11,899) 8 End of Year $ 399,964 $ 163,076 $ 476,977 $ 148,886 119 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Capital Projects Funds Public Library CFD 2004-01 CFD 2006-01 Bond Act- Rancho CFD 2003-01 Vintner's 2000 Etiwanda Cultural Center Grove Revenues: Taxes $ - $ - $ - $ - Licenses and permits - - - - Intergovernmental 772,616 - - - Charges for services - - -Use of money and property 4,908 144 (1,040) 52 Contributions - - - - Developer participation - - - - Miscellaneous - - - - Total Revenues 777,524 144 (1,040) 52 Expenditures: Current: General government - - - - Public safety-police - - - - Public safety-fire protection - - - - Community development - - - - Community services - - - - Engineering and public works - - - - Capital outlay - 38,703 174,062 - Debt service: Principal retirement - - - - Interest and fiscal charges - - - - Total Expenditures - 38,703 174,062 - Excess(Deficiency)of Revenues Over(Under) Expenditures 777,524 (38,559) (175,102) 52 Other Financing Sources(Uses): Transfers in - - - - Transfers out - - - - Total Other Financing Sources (Uses) - - - - Net Change in Fund Balances 777,524 (38,559) (175,102) 52 Fund Balances: Beginning of year, as originally reported (772,609) 988,023 179,114 608,442 Restatements - - - - Beginning of year, as restated (772,609) 988,023 179,114 608,442 Net Change in Fund Balances 777,524 (38,559) (175,102) 52 End of Year $ 4,915 $ 949,464 $ 4,012 $ 608,494 120 CITY OF RANCHO CUCAMONGA COMBINING STATEMENTG OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2012 Capital Projects Fund CFD 2006-02 Total Amador on Governmental Route 66 Funds Revenues: Taxes $ - $ 14,917,835 Licenses and permits - 925 Intergovernmental - 11,369,373 Charges for services - 4,664,256 Use of money and property 73 2,202,931 Contributions - 719,571 Developer participation - 2,197,474 Miscellaneous - 1,093,635 Total Revenues 73 37,166,000 Expenditures: Current: General government - 3,448,855 Public safety-police - 333,484 Public safety-fire protection - 129,786 Community development - 10,083,518 Community services - 8,149,786 Engineering and public works - 5,928,678 Capital outlay - 9,098,961 Debt service: Principal retirement - 9,997 Interest and fiscal charges - 291,777 Total Expenditures - 37,474,842 Excess(Deficiency)of Revenues Over(Under) Expenditures 73 (308,842) Other Financing Sources(Uses): Transfers in - 141,955 Transfers out - (83,690) Total Other Financing Sources (Uses) - 58,265 Net Change in Fund Balances 73 (250,577) Fund Balances: Beginning of year, as originally reported 7,748 93,451,959 Restatements - 3,953,624 Beginning of year, as restated 7,748 97,405,583 Net Change in Fund Balances 73 (250,577) End of Year $ 7,821 $ 97,155,006 121 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) GAS TAX YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $4,041,894 $ 4,041,894 $4,041,894 $ - Resources (Inflows): Intergovernmental 4,779,900 4,600,240 4,952,710 352,470 Use of money and property 27,550 51,320 72,962 21,642 Miscellaneous - 3,830 5,568 1,738 Amounts Available for Appropriation 8,849,344 8,697,284 9,073,134 375,850 Charges to Appropriation (Outflow): Engineering and public works 2,730,520 2,610,860 2,504,107 106,753 Capital outlay 1,250,000 1,260,240 1,129,795 130,445 Debt service: Principal retirement - - 9,997 (9,997) Interest and fiscal charges - - 241 (241) Total Charges to Appropriation 3,980,520 3,871,100 3,644,140 226,960 Budgetary Fund Balance,June 30 (Budgetary Basis) $4,868,824 $ 4,826,184 5,428,994 $ 602,810 Encumbrances 109,367 Budgetary Fund Balance,June 30 (GAAP Basis) $5,538,361 122 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) RECREATION YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,761,392 $ 1,761,392 $ 1,761,392 $ - Resources (Inflows): Intergovernmental - - 15,000 15,000 Charges for services 2,987,360 2,948,710 2,817,880 (130,830) Use of money and property 937,720 939,850 866,222 (73,628) Contributions 474,750 466,650 452,079 (14,571) Miscellaneous 129,330 123,080 150,527 27,447 Amounts Available for Appropriation 6,290,552 6,239,682 6,063,100 (176,582) Charges to Appropriation (Outflow): Community services 4,707,680 4,545,850 4,157,026 388,824 Total Charges to Appropriation 4,707,680 4,545,850 4,157,026 388,824 Budgetary Fund Balance,June 30 (Budgetary Basis) $1,582,872 $ 1,693,832 1,906,074 $ 212,242 Encumbrances 4,549 Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,910,623 123 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PARK DEVELOPMENT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $11,573,661 $11,573,661 $11,573,661 $ - Resources (Inflows): Use of money and property 193,850 162,150 142,946 (19,204) Developer participation 89,000 89,000 235,953 146,953 Amounts Available for Appropriation 11,856,511 11,824,811 11,952,560 127,749 Charges to Appropriation (Outflow): Community development 237,740 229,890 202,432 27,458 Capital outlay 1,045,000 1,629,110 1,227,329 401,781 Total Charges to Appropriation 1,282,740 1,859,000 1,429,761 429,239 Budgetary Fund Balance,June 30 (Budgetary Basis) $10,573,771 $ 9,965,811 10,522,799 $ 556,988 Encumbrances 434,167 Budgetary Fund Balance,June 30 (GAAP Basis) $10,956,966 124 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) BEAUTIFICATION YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 931,370 $ 931,370 $ 931,370 $ - Resources (Inflows): Use of money and property 20,070 14,360 12,463 (1,897) Developer participation 15,000 25,000 60,078 35,078 Amounts Available for Appropriation 966,440 970,730 1,003,911 33,181 Charges to Appropriation (Outflow): Engineering and public works 79,630 87,850 70,864 16,986 Capital outlay 14,850 649,810 40,841 608,969 Total Charges to Appropriation 94,480 737,660 111,705 625,955 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 871,960 $ 233,070 892,206 $ 659,136 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 892,206 125 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIGHTING DISTRICTS YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $6,137,366 $ 6,137,366 $6,137,366 $ - Resources (Inflows): Taxes 1,882,130 1,997,490 2,104,650 107,160 Use of money and property 98,540 81,560 75,539 (6,021) Developer participation 2,900 2,900 2,931 31 Amounts Available for Appropriation 8,120,936 8,219,316 8,320,486 101,170 Charges to Appropriation (Outflow): General government 2,797,080 2,342,210 2,296,621 45,589 Capital outlay - 522,180 450,162 72,018 Total Charges to Appropriation 2,797,080 2,864,390 2,746,783 117,607 Budgetary Fund Balance,June 30 (Budgetary Basis) $5,323,856 $ 5,354,926 5,573,703 $ 218,777 Encumbrances 47,554 Budgetary Fund Balance,June 30 (GAAP Basis) $5,621,257 126 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LANDSCAPE MAINTENANCE DISTRICTS YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $12,140,072 $12,140,072 $12,140,072 $ - Resources (Inflows): Taxes 9,095,560 9,530,990 9,932,718 401,728 Use of money and property 159,890 165,930 226,117 60,187 Miscellaneous 730 200 1,256 1,056 Amounts Available for Appropriation 21,396,252 21,837,192 22,300,163 462,971 Charges to Appropriation (Outflow): Community development 10,212,340 10,042,870 9,590,452 452,418 Capital outlay 728,880 114,130 95,325 18,805 Total Charges to Appropriation 10,941,220 10,157,000 9,685,777 471,223 Budgetary Fund Balance,June 30 (Budgetary Basis) $10,455,032 $11,680,192 12,614,386 $ 934,194 Encumbrances 195,938 Budgetary Fund Balance,June 30 (GAAP Basis) $12,810,324 127 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) TRANSPORTATION YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $18,134,599 $18,134,599 $18,134,599 $ - Resources (Inflows): Use of money and property 280,300 250,090 223,382 (26,708) Developer participation 371,000 636,500 1,047,378 410,878 Amounts Available for Appropriation 18,785,899 19,021,189 19,405,359 384,170 Charges to Appropriation (Outflow): General government 600 - - - Engineering and public works 1,037,020 1,003,250 925,341 77,909 Capital outlay 3,895,000 4,638,890 1,165,923 3,472,967 Total Charges to Appropriation 4,932,620 5,642,140 2,091,264 3,550,876 Budgetary Fund Balance,June 30 (Budgetary Basis) $13,853,279 $13,379,049 17,314,095 $ 3,935,046 Encumbrances 457,156 Budgetary Fund Balance,June 30 (GAAP Basis) $17,771,251 128 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COMMUNITY DEVELOPMENT BLOCK GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 701,477 $ 701,477 $ 701,477 $ - Resources (Inflows): Intergovernmental 1,941,730 1,198,450 1,133,101 (65,349) Use of money and property - - 533 533 Miscellaneous 90,000 90,000 16,780 (73,220) Amounts Available for Appropriation 2,733,207 1,989,927 1,851,891 (138,036) Charges to Appropriation (Outflow): Community development 466,280 446,700 418,286 28,414 Capital outlay 1,565,450 841,750 800,428 41,322 Total Charges to Appropriation 2,031,730 1,288,450 1,218,714 69,736 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 701,477 $ 701,477 633,177 $ (68,300) Encumbrances 2,996 Budgetary Fund Balance,June 30 (GAAP Basis) $ 636,173 129 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSESSMENT ADMINISTRATION YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,108,346 $ 1,108,346 $ 1,108,346 $ - Resources (Inflows): Use of money and property 18,830 15,040 15,104 64 Miscellaneous 901,810 901,810 856,770 (45,040) Amounts Available for Appropriation 2,028,986 2,025,196 1,980,220 (44,976) Charges to Appropriation (Outflow): General government 907,710 902,300 875,790 26,510 Total Charges to Appropriation 907,710 902,400 875,790 26,610 Budgetary Fund Balance,June 30 (Budgetary Basis) $1,121,276 $ 1,122,796 1,104,430 $ (18,366) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,104,430 130 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAN SEVAINE/ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $1,090,748 $ 1,090,748 $ 1,090,748 $ - Resources (Inflows): Use of money and property 14,360 14,850 15,835 985 Developer participation 30,000 26,000 128,793 102,793 Amounts Available for Appropriation 1,135,108 1,131,598 1,235,376 103,778 Charges to Appropriation (Outflow): Capital outlay 495,000 552,760 57,750 495,010 Total Charges to Appropriation 495,000 552,760 57,750 495,010 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 640,108 $ 578,838 1,177,626 $ 598,788 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,177,626 131 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) AIR QUALITY IMPROVEMENT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 637,047 $ 637,047 $ 637,047 $ - Resources (Inflows): Intergovernmental 203,320 203,320 279,694 76,374 Use of money and property 5,080 8,870 8,700 (170) Amounts Available for Appropriation 845,447 849,237 925,441 76,204 Charges to Appropriation (Outflow): General government 149,610 144,220 134,634 9,586 Capital outlay 512,000 704,340 665,474 38,866 Total Charges to Appropriation 661,610 848,560 800,108 48,452 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 183,837 $ 677 125,333 $ 124,656 Encumbrances 520,278 Budgetary Fund Balance,June 30 (GAAP Basis) $ 645,611 132 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SOUTH DRAINAGE ETIWANDA YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 344,253 $ 344,253 $ 344,253 $ - Resources (Inflows): Use of money and property 2,750 4,640 3,624 (1,016) Amounts Available for Appropriation 347,003 348,893 347,877 (1,016) Charges to Appropriation (Outflow): Capital outlay - 49,170 45,670 3,500 Total Charges to Appropriation - 49,170 45,670 3,500 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 347,003 $ 299,723 302,207 $ 2,484 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 302,207 133 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LOWER ETIWANDA DRAINAGE YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 490,622 $ 490,622 $ 490,622 $ - Resources (Inflows): Use of money and property 9,040 6,890 6,073 (817) Amounts Available for Appropriation 499,662 497,512 496,695 (817) Charges to Appropriation (Outflow): Capital outlay 50,000 50,000 49,961 39 Total Charges to Appropriation 50,000 50,000 49,961 39 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 449,662 $ 447,512 446,734 $ (778) Encumbrances 33,720 Budgetary Fund Balance,June 30 (GAAP Basis) $ 480,454 134 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MASI COMMERCE CENTER YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 300,654 $ 300,654 $ 300,654 $ - Resources (Inflows): Use of money and property 160 130 159 29 Amounts Available for Appropriation 300,814 300,784 300,813 29 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 300,814 $ 300,784 300,813 $ 29 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 300,813 135 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) MEASUREI YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $4,762,513 $ 4,762,513 $4,762,513 $ - Resources (Inflows): Intergovernmental 2,183,730 2,179,230 2,272,270 93,040 Use of money and property 68,110 65,700 67,932 2,232 Amounts Available for Appropriation 7,014,353 7,007,443 7,102,715 95,272 Charges to Appropriation (Outflow): Engineering and public works 1,325,910 1,337,810 1,228,975 108,835 Capital outlay 1,538,200 1,496,980 870,860 626,120 Total Charges to Appropriation 2,864,110 2,834,790 2,099,835 734,955 Budgetary Fund Balance,June 30 (Budgetary Basis) $4,150,243 $ 4,172,653 5,002,880 $ 830,227 Encumbrances 210,585 Budgetary Fund Balance,June 30 (GAAP Basis) $5,213,465 136 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIBRARY SERVICES YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $6,914,499 $ 6,914,499 $6,914,499 $ - Resources (Inflows): Taxes 3,226,270 2,983,850 2,880,454 (103,396) Intergovernmental - 8,750 7,038 (1,712) Charges for services 350,500 351,200 395,334 44,134 Use of money and property 91,970 71,810 78,353 6,543 Contributions 125,000 130,000 125,000 (5,000) Miscellaneous - 53,730 53,489 (241) Amounts Available for Appropriation 10,708,239 10,513,839 10,454,167 (59,672) Charges to Appropriation (Outflow): Community services 3,890,520 3,957,850 3,747,240 210,610 Transfers out 83,690 95,610 83,690 11,920 Total Charges to Appropriation 3,974,210 4,053,460 3,830,930 222,530 Budgetary Fund Balance,June 30 (Budgetary Basis) $6,734,029 $ 6,460,379 6,623,237 $ 162,858 Encumbrances 20,183 Budgetary Fund Balance,June 30 (GAAP Basis) $6,643,420 137 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CALIFORNIA LITERACY PROGRAM YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (6,246) $ (6,246) $ (6,246) $ - Resources (Inflows): Use of money and property - - (21) (21) Contributions 15,000 15,000 15,000 - Transfers in 83,000 95,610 83,690 (11,920) Amounts Available for Appropriation 91,754 104,364 92,423 (11,941) Charges to Appropriation (Outflow): Community services 105,250 104,360 100,636 3,724 Total Charges to Appropriation 105,250 104,360 100,636 3,724 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (13,496) $ 4 (8,213) $ (8,217) Encumbrances 11 Budgetary Fund Balance,June 30 (GAAP Basis) $ (8,202) 138 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 84-PARK BOND ACT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ $ - $ - $ - Resources (Inflows): Intergovernmental - 45,114 - (45,114) Use of money and property - (23) (23) Amounts Available for Appropriation - 45,114 (23) (45,137) Charges to Appropriation (Outflow): Capital outlay 22,560 4,377 18,183 Total Charges to Appropriation - 22,560 4,377 18,183 Budgetary Fund Balance,June 30 (Budgetary Basis) $ - $ 22,554 (4,400) $ (26,954) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (4,400) 139 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ASSET FORFEITURE YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 573,343 $ 573,343 $ 573,343 $ - Resources (Inflows): Intergovernmental - - 64,990 64,990 Use of money and property 1,700 1,590 1,731 141 Amounts Available for Appropriation 575,043 574,933 640,064 65,131 Charges to Appropriation (Outflow): Public safety-Police - 43,970 43,962 8 Capital outlay - 31,080 33,182 (2,102) Total Charges to Appropriation - 75,050 77,144 (2,094) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 575,043 $ 499,883 562,920 $ 63,037 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 562,920 140 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) USED OIL RECYCLING GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 105 $ 105 $ 105 $ - Resources (Inflows): Intergovernmental 20,900 20,900 12,520 (8,380) Use of money and property - - 38 38 Amounts Available for Appropriation 21,005 21,005 12,663 (8,342) Charges to Appropriation (Outflow): Engineering and public works 20,500 12,520 12,520 - Total Charges to Appropriation 20,500 12,520 12,520 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 505 $ 8,485 143 $ (8,342) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 143 141 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS PROGRAM GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 196,432 $ 196,432 $ 196,432 $ - Resources (Inflows): Intergovernmental 200,000 319,150 167,091 (152,059) Use of money and property - - (547) (547) Amounts Available for Appropriation 396,432 515,582 362,976 (152,606) Charges to Appropriation (Outflow): Public safety- Police 400,000 319,150 170,019 149,131 Total Charges to Appropriation 400,000 319,150 170,019 149,131 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (3,568) $ 196,432 192,957 $ (3,475) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 192,957 142 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) DRAINAGE FACILITIES YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $4,816,281 $ 4,816,281 $4,816,281 $ - Resources (Inflows): Use of money and property 78,710 69,810 70,301 491 Developer participation 260,000 640,000 722,341 82,341 Amounts Available for Appropriation 5,154,991 5,526,091 5,608,923 82,832 Charges to Appropriation (Outflow): Engineering and public works 249,310 244,640 240,729 3,911 Capital outlay 1,868,000 2,240,580 2,218,095 22,485 Total Charges to Appropriation 2,117,310 2,485,220 2,458,824 26,396 Budgetary Fund Balance,June 30 (Budgetary Basis) $3,037,681 $ 3,040,871 3,150,099 $ 109,228 Encumbrances 1,408,295 Budgetary Fund Balance,June 30 (GAAP Basis) $4,558,394 143 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 42,051 $ 42,051 $ 42,051 $ - Resources (Inflows): Intergovernmental - 21,450 39,858 18,408 Use of money and property - - (426) (426) Amounts Available for Appropriation 42,051 63,501 81,483 17,982 Charges to Appropriation (Outflow): Community services 48,980 70,880 61,887 8,993 Total Charges to Appropriation 48,980 70,880 61,887 8,993 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (6,929) $ (7,379) 19,596 $ 26,975 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 19,596 144 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LIBRARY SERVICES&TECHNOLOGIES ACT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 23,681 $ 23,681 $ 23,681 $ - Resources (Inflows): Intergovernmental - 34,950 32,450 (2,500) Use of money and property - - 133 133 Contributions - 10,000 10,000 - Amounts Available for Appropriation 23,681 68,631 66,264 (2,367) Charges to Appropriation (Outflow): Community services - 33,620 19,748 13,872 Total Charges to Appropriation - 33,620 19,748 13,872 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 23,681 $ 35,011 46,516 $ 11,505 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 46,516 145 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) LITTER REDUCTION GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 44 $ 44 $ 44 $ - Resources (Inflows): Intergovernmental - 53,930 23,221 (30,709) Use of money and property - - 409 409 Amounts Available for Appropriation 44 53,974 23,674 (30,300) Charges to Appropriation (Outflow): Engineering and public works 22,000 53,930 23,221 30,709 Total Charges to Appropriation 22,000 53,930 23,221 30,709 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (21,956) $ 44 453 $ 409 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 453 146 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) ENERGY EFFICIENT&CONSERVATION BLOCK GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (28,859) $ (28,859) $ (28,859) $ - Resources (Inflows): Intergovernmental 18,480 18,480 1,179,356 1,160,876 Use of money and property - - 214 214 Miscellaneous - - 8,798 8,798 Amounts Available for Appropriation (10,379) (10,379) 1,159,509 1,169,888 Charges to Appropriation (Outflow): Community development 18,480 18,480 19,510 (1,030) Capital outlay - 1,172,050 1,133,606 38,444 Total Charges to Appropriation 18,480 1,190,530 1,153,116 37,414 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (28,859) $(1,200,909) 6,393 $ 1,207,302 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 6,393 147 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SENIOR OUTREACH GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (1,195) $ (1,195) $ (1,195) $ - Resources (Inflows): Intergovernmental 7,500 6,000 4,084 (1,916) Amounts Available for Appropriation 6,305 4,805 2,889 (1,916) Charges to Appropriation (Outflow): Parks and recreation 7,500 6,000 6,129 (129) Total Charges to Appropriation 7,500 6,000 6,129 (129) Budgetary Fund Balance,June 30 (Budgetary Basis) $ (1,195) $ (1,195) (3,240) $ (2,045) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (3,240) 148 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) UNDERGROUND UTILITIES YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $10,143,867 $ 10,143,867 $10,143,867 $ - Resources (Inflows): Charges for services 100,000 117,180 344,549 227,369 Use of money and property 133,480 107,130 233,652 126,522 Amounts Available for Appropriation 10,377,347 10,368,177 10,722,068 353,891 Charges to Appropriation (Outflow): Engineering and public works 31,850 31,850 31,850 - Total Charges to Appropriation 1,305,780 31,850 31,850 - Budgetary Fund Balance,June 30 (Budgetary Basis) $ 9,071,567 $ 10,336,327 10,690,218 $ 353,891 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $10,690,218 149 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) SAFE ROUTES TO SCHOOL PROGRAM YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (321) $ (321) $ (321) $ - Resources (Inflows): Use of money and property - - (215) (215) Amounts Available for Appropriation (321) (321) (536) (215) Charges to Appropriation (Outflow): Engineering and public works 114,800 118,190 42,822 75,368 Total Charges to Appropriation 114,800 118,190 42,822 75,368 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (115,121) $ (118,511) (43,358) $ 75,153 Encumbrances 3,800 Budgetary Fund Balance,June 30 (GAAP Basis) $ (39,558) 150 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) FOOTHILL BLVD. MAINTNENANCE YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 90,441 $ 90,441 $ 90,441 $ - Resources (Inflows): Use of money and property - - (280) (280) Amounts Available for Appropriation 90,441 90,441 90,161 (280) Charges to Appropriation (Outflow): Engineering and public works 73,590 40,280 37,447 2,833 Total Charges to Appropriation 73,590 40,280 37,447 2,833 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 16,851 $ 50,161 52,714 $ 2,553 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 52,714 151 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) COPS SECURE OUR SCHOOL GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (9,050) $ (9,050) $ (9,050) $ - Resources (Inflows): Intergovernmental 130,430 51,890 67,314 15,424 Use of money and property - - 679 679 Transfers in 130,430 54,000 58,265 4,265 Amounts Available for Appropriation 251,810 96,840 117,208 20,368 Charges to Appropriation (Outflow): Public safety-Police 98,860 173,300 119,509 53,791 Capital outlay 10,000 10,000 6,137 3,863 Total Charges to Appropriation 108,860 183,300 125,646 57,654 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 142,950 $ (86,460) (8,438) $ 78,022 Encumbrances 9,118 Budgetary Fund Balance,June 30 (GAAP Basis) $ 680 152 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CA STATE LIBRARY STAFF INNOVATION FUND GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ - $ - $ - $ - Resources (Inflows): Taxes - - 13 13 Intergovernmental - 112,620 103,776 (8,844) Use of money and property - - 2,053 2,053 Amounts Available for Appropriation - 112,620 105,842 (6,778) Charges to Appropriation (Outflow): Parks and recreation - 89,030 80,814 8,216 Capital outlay - 284,560 8,000 276,560 Total Charges to Appropriations - 373,590 88,814 284,776 Budgetary Fund Balance,June 30 (Budgetary Basis) $ - $ (260,970) 17,028 $ 277,998 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 17,028 153 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) THE BIG READ LIBRARY GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 10,097 $ 10,097 $ 10,097 $ - Resources (Inflows): Intergovernmental - 5,270 1,049 (4,221) Use of money and property - - (19) (19) Amounts Available for Appropriation 10,097 15,367 11,127 (4,240) Charges to Appropriation (Outflow): Parks and recreation - 5,270 1,049 4,221 Total Charges to Appropriation - 5,270 1,049 4,221 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 10,097 $ 10,097 10,078 $ (19) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 10,078 154 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) DEPARTMENT OF HOMELAND SECURITY GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (2,454) $ (2,454) $ (2,454) $ - Resources (Inflows): Intergovernmental 37,940 37,940 121,159 83,219 Use of money and property - - (47) (47) Amounts Available for Appropriation 35,486 35,486 118,658 83,172 Charges to Appropriation (Outflow): Public safety-fire protection 37,940 151,010 129,786 21,224 Total Charges to Appropriation 37,940 151,010 129,786 21,224 Budgetary Fund Balance,June 30 (Budgetary Basis) $ (2,454) $ (115,524) (11,128) $ 104,396 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ (11,128) 155 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PUBLIC RESOURCE GRANTS YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 108,050 $ 108,050 $ 108,050 $ - Resources (Inflows): Intergovernmental - - 1,000 1,000 Use of money and property - - (205) (205) Contributions 90,000 90,000 117,492 27,492 Miscellaneous - - 447 447 Amounts Available for Appropriation 198,050 198,050 226,784 28,734 Charges to Appropriation (Outflow): General government 129,370 152,640 143,310 9,330 Total Charges to Appropriation 129,370 152,640 143,310 9,330 Budgetary Fund Balance,June 30 (Budgetary Basis) $ 68,680 $ 45,410 83,474 $ 38,064 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 83,474 156 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 113 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 230,089 $ 230,089 $ 230,089 $ - Resources (Inflows): Use of money and property 7,670 3,250 2,796 (454) Amounts Available for Appropriation 237,759 233,339 232,885 (454) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 237,759 $ 233,339 232,885 $ (454) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 232,885 157 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) INTEGRATED WASTE MANAGEMENT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $3,835,119 $ 3,835,119 $3,835,119 $ - Resources (Inflows): Licenses and permits - - 925 925 Charges for services 1,048,320 1,048,320 1,106,493 58,173 Use of money and property 60,470 45,050 28,964 (16,086) Amounts Available for Appropriation 4,943,909 4,928,489 4,971,501 43,012 Charges to Appropriation (Outflow): Engineering and public works 1,131,610 1,088,450 980,881 107,569 Capital outlay 17,000 2,409,120 2,370,399 38,721 Total Charges to Appropriation 1,148,610 3,497,570 3,351,280 146,290 Budgetary Fund Balance,June 30 (Budgetary Basis) $3,795,299 $ 1,430,919 1,620,221 $ 189,302 Encumbrances 1,107,651 Budgetary Fund Balance,June 30 (GAAP Basis) $2,727,872 158 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) PROPOSITION 42-TRAFFIC CONGESTION MITIGATION YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $2,011,287 $ 2,011,287 $2,011,287 $ - Resources (Inflows): Use of money and property 34,640 27,510 21,291 (6,219) Amounts Available for Appropriation 2,045,927 2,038,797 2,032,578 (6,219) Charges to Appropriation (Outflow): Engineering and public works - 157,000 - 157,000 Capital outlay 733,700 967,800 831,478 136,322 Total Charges to Appropriation 733,700 1,124,800 831,478 293,322 Budgetary Fund Balance,June 30 (Budgetary Basis) $1,312,227 $ 913,997 1,201,100 $ 287,103 Encumbrances 207,972 Budgetary Fund Balance,June 30 (GAAP Basis) $ 1,409,072 159 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) JUSTICE ASSISTANCE GRANT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 6,544 $ 6,544 $ 6,544 $ - Resources (Inflows): Intergovernmental 40,000 40,000 - (40,000) Use of money and property 2,340 1,920 2,497 577 Amounts Available for Appropriation 48,884 48,464 9,041 (39,423) Budgetary Fund Balance,June 30 (Budgetary Basis) $ 48,884 $ 48,464 9,041 $ (39,423) Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 9,041 160 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) HOMELAND SECURITY GRANT 2005 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (74,941) $ (74,941) $ (74,941) $ - Intergovernmental - - 56,348 56,348 Amounts Available for Appropriation (74,941) (74,941) (18,558) 56,383 Charges to Appropriation (Outflow): Public safety - 3,060 2,975 85 Capital outlay - 76,830 99,100 (22,270) Total Charges to Appropriation - 79,890 102,075 (22,185) Budgetary Fund Balance,June 30 (Budgetary Basis) $ (74,941) $ (154,831) (120,633) $ 34,198 Encumbrances 47,597 Budgetary Fund Balance,June 30 (GAAP Basis) $ (73,036) 161 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 82-1 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 12,507 $ 12,507 $ 12,507 $ - Resources(Inflows): Use of money and property 210 170 140 (30) Amounts Available for Appropriation 12,717 12,677 12,647 (30) Budgetary Fund Balance,June 30(Budgetary Basis) $ 12,717 $ 12,677 12,647 $ (30) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 12,647 162 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) ASSESSMENT DISTRICT 84-1 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 1,067,328 $ 1,067,328 $ 1,067,328 $ - Resources(Inflows): Use of money and property 18,330 14,840 14,162 (678) Amounts Available for Appropriation 1,085,658 1,082,168 1,081,490 (678) Budgetary Fund Balance,June 30(Budgetary Basis) $1,085,658 $ 1,082,168 1,081,490 $ (678) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 1,081,490 163 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-01 SOUTH ETIWANDA YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 92,018 $ 92,018 $ 92,018 $ - Resources(Inflows): Use of money and property 20 10 3 (7) Amounts Available for Appropriation 92,038 92,028 92,021 (7) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges - - 91,958 (91,958) Total Charges to Appropriation - - 91,958 (91,958) Budgetary Fund Balance,June 30(Budgetary Basis) $ 92,038 $ 92,028 63 $ (91,965) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 63 164 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-02 RANCHO CUCAMONGA CORPORATE PARK YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 581,391 $ 581,391 $ 581,391 $ - Resources(Inflows): Use of money and property 60 60 - (60) Amounts Available for Appropriation 581,451 581,451 581,391 (60) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges - - 181,427 (181,427) Total Charges to Appropriation - - 181,427 (181,427) Budgetary Fund Balance,June 30(Budgetary Basis) $ 581,451 $ 581,451 399,964 $ (181,487) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 399,964 165 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2000-03 RANCHO SUMMIT YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 163,067 $ 163,067 $ 163,067 $ - Resources(Inflows): Use of money and property 1,200 1,190 9 (1,181) Amounts Available for Appropriation 164,267 164,257 163,076 (1,181) Budgetary Fund Balance,June 30(Budgetary Basis) $ 164,267 $ 164,257 163,076 $ (1,181) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 163,076 166 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2001-01 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 488,876 $ 488,876 $ 488,876 $ - Resources(Inflows): Use of money and property 8,100 6,550 6,252 (298) Amounts Available for Appropriation 496,976 495,426 495,128 (298) Charges to Appropriation (Outflow): Debt service: Interest and fiscal charges - - 18,151 (18,151) Total Charges to Appropriation - - 18,151 (18,151) Budgetary Fund Balance,June 30(Budgetary Basis) $ 496,976 $ 495,426 476,977 $ (18,449) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 476,977 167 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2003-01 PROJECT FUND YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 148,878 $ 148,878 $ 148,878 $ - Resources(Inflows): Use of money and property 100 100 8 (92) Amounts Available for Appropriation 148,978 148,978 148,886 (92) Budgetary Fund Balance,June 30(Budgetary Basis) $ 148,978 $ 148,978 148,886 $ (92) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 148,886 168 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) PUBLIC LIBRARY BOND ACT-2000 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ (772,609) $ (772,609) $ (772,609) $ - Resources(Inflows): Intergovernmental - - 772,616 772,616 Use of money and property - - 4,908 4,908 Amounts Available for Appropriation (772,609) (772,609) 4,915 777,524 Budgetary Fund Balance,June 30(Budgetary Basis) $ (772,609) $ (772,609) 4,915 $ 777,524 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 4,915 169 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE (BUDGETARY BASIS) CFD 2004-01 RANCHO ETIWANDA YEAR ENDED JUNE 30, 2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 988,023 $ 988,023 $ 988,023 $ - Resources (Inflows): Use of money and property 390 190 144 (46) Amounts Available for Appropriation 988,413 988,213 988,167 (46) Charges to Appropriation (Outflow): Capital outlay 500,000 500,000 38,703 461,297 Total Charges to Appropriation 500,000 500,000 38,703 461,297 Budgetary Fund Balance,June 30(Budgetary Basis) $ 488,413 $ 488,213 949,464 $ 461,251 Encumbrances - Budgetary Fund Balance,June 30 (GAAP Basis) $ 949,464 170 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2003-01 CULTURAL CENTER YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 179,114 $ 179,114 $ 179,114 $ - Resources(Inflows): Use of money and property 130 120 (1,040) (1,160) Amounts Available for Appropriation 179,244 179,234 178,074 (1,160) Charges to Appropriation (Outflow): Capital outlay - 175,000 174,062 938 Total Charges to Appropriation - 175,000 174,062 938 Budgetary Fund Balance,June 30(Budgetary Basis) $ 179,244 $ 4,234 4,012 $ (222) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 4,012 171 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-01 VINTNER'S GROVE YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 608,442 $ 608,442 $ 608,442 $ - Resources(Inflows): Use of money and property 330 320 52 (268) Amounts Available for Appropriation 608,772 608,762 608,494 (268) Charges to Appropriation (Outflow): Capital outlay 100,000 100,000 - 100,000 Total Charges to Appropriation 100,000 100,000 - 100,000 Budgetary Fund Balance,June 30(Budgetary Basis) $ 508,772 $ 508,762 608,494 $ 99,732 Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 608,494 172 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) CFD 2006-02 AMADOR ON ROUTE 66 YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 7,748 $ 7,748 $ 7,748 $ - Resources(Inflows): Use of money and property 220 200 73 (127) Amounts Available for Appropriation 7,968 7,948 7,821 (127) Budgetary Fund Balance,June 30(Budgetary Basis) $ 7,968 $ 7,948 7,821 $ (127) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ 7,821 173 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) REDEVELOPMENT AGENCY-CAPITAL PROJECT FUND YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $285,343,315 $285,343,315 $285,343,315 $ - Resources (Inflows): Taxes 20,000,000 9,715,860 9,715,853 (7) Use of money and property 4,854,023 4,900,110 2,521,619 (2,378,491) Transfers in 35,810 85,810 26,858 (58,952) Amounts Available for Appropriation 310,233,148 300,045,095 297,607,645 (2,437,450) Charges to Appropriation (Outflow): General government 2,722,800 2,737,160 2,206,263 530,897 Community development 150,000 150,000 102,320 47,680 Capital outlay 35,124,130 19,347,839 7,807,127 11,540,712 Debt service: Principal retirement 3,167,690 3,184,270 2,982,900 201,370 Interest and fiscal charges 9,028,350 12,577,820 4,552,549 8,025,271 Extraordinary gain/(loss)on dissolution of redevelopment agency(Note 16) - - 279,956,486 (279,956,486) Total Charges to Appropriation 50,192,970 37,997,089 297,607,645 (259,610,556) Budgetary Fund Balance,June 30(Budgetary Basis) $260,040,178 $262,048,006 - $ (262,048,006) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 174 CITY OF RANCHO CUCAMONGA BUDGETARY COMPARISON SCHEDULE(BUDGETARY BASIS) REDEVELOPMENT AGENCY-DEBT SERVICE FUND YEAR ENDED JUNE 30,2012 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 $ 148,689,804 $ 148,689,804 $ 148,689,804 $ - Resources (Inflows): Taxes 80,000,000 38,863,420 38,863,410 (10) Use of money and property 859,000 868,230 252,101 (616,129) Notes and loans issued - - 57,242 57,242 Amounts Available for Appropriation 229,548,804 188,421,454 187,862,557 (558,897) Charges to Appropriation (Outflow): General government 22,886,070 24,870,850 14,067,829 10,803,021 Capital outlay 4,670,430 2,608,967 857,519 1,751,448 Debt service: Principal retirement 14,230,000 14,230,000 6,730,000 7,500,000 Interest and fiscal charges 12,241,010 12,241,010 6,247,721 5,993,289 Pass-through agreement payments 21,002,760 21,002,760 3,030,962 17,971,798 Transfers out 35,810 18,110 26,858 (8,748) Extraordinary gain/(loss)on dissolution of redevelopment agency(Note 16) - - 156,901,668 (156,901,668) Total Charges to Appropriations 75,066,080 74,971,697 187,862,557 (112,890,860) Budgetary Fund Balance,June 30(Budgetary Basis) $ 154,482,724 $ 113,449,757 - $ (113,449,757) Encumbrances - Budgetary Fund Balance,June 30(GAAP Basis) $ - 175 THIS PAGE INTENTIONALLY LEFT BLANK 176 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. 177 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS JUNE 30, 2012 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Assets: Current: Cash and investments $ 7,957,129 $ 3,134,063 $ 11,091,192 Receivables: Accrued interest 5,833 1,570 7,403 Total Current Assets 7,962,962 3,135,633 11,098,595 Noncurrent: Capital assets-net of accumulated depreciation 2,495,488 846,365 3,341,853 Total Noncurrent Assets 2,495,488 846,365 3,341,853 Total Assets $ 10,458,450 $ 3,981,998 $ 14,440,448 Liabilities and Net Assets: Liabilities: Current: Accounts payable $ 39,689 $ 79,062 $ 118,751 Total Current Liabilities 39,689 79,062 118,751 Total Liabilities 39,689 79,062 118,751 Net Assets: Invested in capital assets 2,495,488 846,365 3,341,853 Unrestricted 7,923,273 3,056,571 10,979,844 Total Net Assets 10,418,761 3,902,936 14,321,697 Total Liabilities and Net Assets $ 10,458,450 $ 3,981,998 $ 14,440,448 178 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2012 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Operating Revenues: Sales and service charges $ - $ 590 $ 590 Total Operating Revenues - 590 590 Operating Expenses: Maintenance and operations 352,954 238,278 591,232 Depreciation 1,331,442 242,879 1,574,321 Total Operating Expenses 1,684,396 481,157 2,165,553 Operating Income(Loss) (1,684,396) (480,567) (2,164,963) Nonoperating Revenues(Expenses): Interest revenue 91,061 23,475 114,536 Total Nonoperating Revenues(Expenses) 91,061 23,475 114,536 Income(Loss)Before Transfers (1,593,335) (457,092) (2,050,427) Transfers in 600,360 1,145,120 1,745,480 Changes in Net Assets (992,975) 688,028 (304,947) Net Assets: Beginning of Year 11,411,736 3,214,908 14,626,644 End of Fiscal Year $ 10,418,761 $ 3,902,936 $ 14,321,697 179 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS YEAR ENDED JUNE 30,2012 Computer Equipment Equipment/ and Vehicle Technology Replacement Replacement Total Cash Flows from Operating Activities: Cash received from customers and users $ - $ 590 $ 590 Cash paid to suppliers for goods and services (409,194) (191,146) (600,340) Net Cash Provided(Used) by Operating Activities (409,194) (190,556) (599,750) Cash Flows from Non-Capital Financing Activities: Due from Cash transfers in 600,360 1,145,120 1,745,480 Net Cash Provided(Used) by Non-Capital Financing Activities 600,360 1,145,120 1,745,480 Cash Flows from Capital and Related Financing Activities: Acquisition and construction of capital assets (465,472) (192,938) (658,410) Net Cash Provided(Used) by Capital and Related Financing Activities (465,472) (192,938) (658,410) Cash Flows from Investing Activities: Interest received 90,078 23,306 113,384 Net Cash Provided(Used) by Investing Activities 90,078 23,306 113,384 Net Increase(Decrease) in Cash and Cash Equivalents (184,228) 784,932 600,704 Cash and Cash Equivalents at Beginning of Year 8,141,357 2,349,131 10,490,488 Cash and Cash Equivalents at End of Year $ 7,957,129 $ 3,134,063 $ 11,091,192 Reconciliation of Operating Income to Net Cash Provided(Used) by Operating Activities: Operating income(loss) $ (1,684,396) $ (480,567) $ (2,164,963) Adjustments to reconcile operating income(loss) net cash provided (used) by operating activities: Depreciation 1,331,442 242,879 1,574,321 Increase(decrease)in accounts payable (56,240) 47,132 (9,108) Total Adjustments 1,275,202 290,011 1,565,213 Net Cash Provided (Used) by Operating Activities $ (409,194) $ (190,556) $ (599,750) Non-Cash Investing, Capital, and Financing Activities: During fiscal year 2011-2012,there was no noncash investing, capital or financing activities. 180 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. 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. 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. 181 CITY OF RANCHO CUCAMONGA Agency Funds (Continued) Community Facilities District No. 2001-01 Special Tax Bonds, Series 2001-A Fund - Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District No. 2001-01 Special Tax Bonds, Series 2001-B Fund - Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2003-01 Series A Fund - This fund is used for the Community Facilities District 2003-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2003-01 Series B Fund - This fund is used for the Community Facilities District 2003-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-03 Rancho Summit Redemption Fund - Established to account for assessments received under the Mello-Roos Community Facilities Act of 1982. Assessments received are restricted for payment of principal, interest and penalties thereon, upon presentation of proper coupons. Community Facilities District 2000-03 Rancho Summit Reserve Fund - Established to account for the reserve fund held by the trustee. Community Facilities District 2004-01 Fund - This fund is used for the Community Facilities District 2004-01 bond redemption process. The Bond Redemption fund is a short-term rotating fund, generally used to consolidate the collections received from the payments of the property owners upon payment of their annual assessments at the time of payment of their tax bills. Furthermore, the monies in this fund are used to meet the annual principal and semiannual interest payment on the bonds. Community Facilities District 2000-03 Park Maintenance Fund - This fund is used for the maintenance of parks and parkways located within the Community Facilities District No. 2000-03. The District is located south of Summit Avenue on the east and west sides of Wardman Bullock Road. Community Facilities District 2006-01 Redemption Fund - This fund was established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Community Facilities District 2006-02 Redemption Fund - This fund was established to account for monies deposited by developers for initial consulting and administrative costs and expenses related to a proposed public financing district. Employee Deduction Account Fund - Established to account for the contribution by City employees towards specific employee-paid benefits. 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. 182 THIS PAGE INTENTIONALLY LEFT BLANK 183 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 Special Assessment Assessment Assessment Deposits District 82-1 District 84-2 District 85-PD Assets: Cash and investments $ 7,693,676 $ 46 $ 46 $ 1,525,747 Receivables: Accounts 1,500 - - - Taxes - - - 12,110 Accrued interest - - - 1,233 Restricted assets: Cash and investments with fiscal agents - - - - Total Assets $ 7,695,176 $ 46 $ 46 $ 1,539,090 Liabilities: Accounts payable $ 12,942 $ - $ - $ 49,602 Accrued liabilities - - - 17,860 Deposits payable 7,682,234 - - - Payable to trustee - 46 46 1,471,628 Due to external parties/other agencies - - - - Total Liabilities $ 7,695,176 $ 46 $ 46 $ 1,539,090 184 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 (Continued) Assessment Assessment CFD 88-2 District 91-2 CFD 93-3 District 99-1 Assets: Cash and investments $ 5,094,391 $ 143,298 $ 746,190 $ 610,571 Receivables: Accounts - - - - Taxes 3,290 139 - 233 Accrued interest 2,752 113 585 480 Restricted assets: Cash and investments with fiscal agents 4,651 - 7,764 1,706,893 Total Assets $ 5,105,084 $ 143,550 $ 754,539 $ 2,318,177 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - 1,004 - - Deposits payable - - - - Payable to trustee 5,105,084 142,546 754,539 2,318,177 Due to external parties/other agencies - - - - Total Liabilities $ 5,105,084 $ 143,550 $ 754,539 $ 2,318,177 185 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 CFD 2000-02 Rancho CFD 2000-01 Cucamonga AD 93-1 Masi South Corporate Commerce CFD 2001-01 Etiwanda Park Center Series A Assets: Cash and investments $ 106,860 $ 391,303 $ 473,463 $ 979,439 Receivables: Accounts - - - - Taxes 250 5,462 - 14,246 Accrued interest 85 307 371 1 Restricted assets: Cash and investments with fiscal agents 90,299 540,839 242,500 888,799 Total Assets $ 197,494 $ 937,911 $ 716,334 $ 1,882,485 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 197,494 937,911 716,334 1,882,485 Due to external parties/other agencies - - - - Total Liabilities $ 197,494 $ 937,911 $ 716,334 $ 1,882,485 186 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 (Continued) CFD 2000-03 Rancho CFD 2001-01 CFD 2003-01 CFD 2003-01 Summit Series B Series A Series B Redemption Assets: Cash and investments $ 26,016 $ 1,068,327 $ 165,176 $ 1,064,810 Receivables: Accounts - - - - Taxes - 996 - - Accrued interest - 838 130 835 Restricted assets: Cash and investments with fiscal agents - 1,464,501 292,974 63 Total Assets $ 26,016 $ 2,534,662 $ 458,280 $ 1,065,708 Liabilities: Accounts payable $ - $ - $ - $ - Accrued liabilities - - - - Deposits payable - - - - Payable to trustee 26,016 2,534,662 458,280 1,065,708 Due to external parties/other agencies - - - - Total Liabilities $ 26,016 $ 2,534,662 $ 458,280 $ 1,065,708 187 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 CFD 2000-03 Rancho CFD 2000-03 Summit Park CFD 2006-01 Reserve CFD 2004-01 Maintenance Redemption Assets: Cash and investments $ - $ 2,375,193 $ 868,416 $ 529,384 Receivables: Accounts - - - - Taxes - 25,907 5,565 2,774 Accrued interest - 1,844 694 414 Restricted assets: Cash and investments with fiscal agents 665,452 2,814,147 - 379,647 Total Assets $ 665,452 $ 5,217,091 $ 874,675 $ 912,219 Liabilities: Accounts payable $ - $ 474 $ 3,055 $ - Accrued liabilities - - 6,506 - Deposits payable - - - - Payable to trustee 665,452 5,216,617 865,114 912,219 Due to external parties/other agencies - - - - Total Liabilities $ 665,452 $ 5,217,091 $ 874,675 $ 912,219 188 CITY OF RANCHO CUCAMONGA COMBINING BALANCE SHEET ALL AGENCY FUNDS JUNE 30, 2012 Employee CFD 2006-02 Deduction Assessment Redemption Account District 82-2 Totals Assets: Cash and investments $ 272,301 $ 64,319 $ 5 $ 24,198,977 Receivables: Accounts - - - 1,500 Taxes 4,105 - - 75,077 Accrued interest 213 - - 10,895 Restricted assets: Cash and investments with fiscal agents 197,792 - - 9,296,321 Total Assets $ 474,411 $ 64,319 $ 5 $ 33,582,770 Liabilities: Accounts payable $ - $ 722 $ - $ 66,795 Accrued liabilities - - - 25,370 Deposits payable - - - 7,682,234 Payable to trustee 474,411 - 5 25,744,774 Due to external parties/other agencies - 63,597 - 63,597 Total Liabilities $ 474,411 $ 64,319 $ 5 $ 33,582,770 189 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 Balance Balance 7/1/2011 Additions Deductions 6/30/2012 Special Deposits Assets: Cash and investments $ 7,469,062 $ 883,578 $ 658,964 $ 7,693,676 Receivables: Accounts 1,500 - - 1,500 Taxes 34,431 - 34,431 - Total Assets $ 7,504,993 $ 883,578 $ 693,395 $ 7,695,176 Liabilities: Accounts payable $ 6,629 $ 638,901 $ 632,588 $ 12,942 Deposits payable 7,498,364 1,045,269 861,399 7,682,234 Total Liabilities $ 7,504,993 $ 1,684,170 $ 1,493,987 $ 7,695,176 Assessment District 82-1 Assets: Cash and investments $ 46 $ - $ - $ 46 Total Assets $ 46 $ - $ - $ 46 Liabilities: Payable to trustee $ 46 $ - $ - $ 46 Total Liabilities $ 46 $ - $ - $ 46 Assessment District 84-2 Assets: Cash and investments $ 46 $ - $ - $ 46 Total Assets $ 46 $ - $ - $ 46 Liabilities: Payable to trustee $ 46 $ - $ - $ 46 Total Liabilities $ 46 $ - $ - $ 46 Assessment District 85-PD Assets: Cash and investments $ 1,834,117 $ 1,228,733 $ 1,537,103 $ 1,525,747 Receivables: Taxes 10,479 12,110 10,479 12,110 Accrued interest 1,113 1,233 1,113 1,233 Total Assets $ 1,845,709 $ 1,242,076 $ 1,548,695 $ 1,539,090 Liabilities: Accounts payable $ 37,316 $ 505,263 $ 492,977 $ 49,602 Accrued liabilities 21,033 17,860 21,033 17,860 Payable to trustee 1,787,360 1,268,767 1,584,499 1,471,628 Total Liabilities $ 1,845,709 $ 1,791,890 $ 2,098,509 $ 1,539,090 190 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 (Continued) Balance Balance 7/1/2011 Additions Deductions 6/30/2012 CFD 88-2 Assets: Cash and investments $ 4,813,429 $ 3,616,031 $ 3,335,069 $ 5,094,391 Receivables: Taxes 6,078 3,290 6,078 3,290 Accrued interest 1,910 2,752 1,910 2,752 Restricted assets: Cash and investments with fiscal agents 164,867 4,655 164,871 4,651 Total Assets $ 4,986,284 $ 3,626,728 $ 3,507,928 $ 5,105,084 Liabilities: Payable to trustee $ 4,986,284 $ 455,278 $ 336,478 $ 5,105,084 Total Liabilities $ 4,986,284 $ 455,278 $ 336,478 $ 5,105,084 Assessment District 91-2 Assets: Cash and investments $ 169,630 $ 37,005 $ 63,337 $ 143,298 Receivables: Taxes 729 139 729 139 Accrued interest 98 113 98 113 Total Assets $ 170,457 $ 37,257 $ 64,164 $ 143,550 Liabilities: Accrued liabilities $ 853 $ 1,004 $ 853 $ 1,004 Payable to trustee 169,604 56,969 84,027 142,546 Total Liabilities $ 170,457 $ 57,973 $ 84,880 $ 143,550 CFD 93-3 Assets: Cash and investments $ 472,020 $ 438,759 $ 164,589 $ 746,190 Receivables: Accrued interest 280 585 280 585 Restricted assets: Cash and investments with fiscal agents 267,481 7,770 267,487 7,764 Total Assets $ 739,781 $ 447,114 $ 432,356 $ 754,539 Liabilities: Payable to trustee $ 739,781 $ 450,506 $ 435,748 $ 754,539 Total Liabilities $ 739,781 $ 450,506 $ 435,748 $ 754,539 191 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 Balance Balance 7/1/2011 Additions Deductions 6/30/2012 Assessment District 99-1 Assets: Cash and investments $ 703,158 $ 173,999 $ 266,586 $ 610,571 Receivables: Taxes - 233 - 233 Accrued interest 418 480 418 480 Restricted assets: Cash and investments with fiscal agents 1,750,775 20,705 64,587 1,706,893 Total Assets $ 2,454,351 $ 195,417 $ 331,591 $ 2,318,177 Liabilities: Payable to trustee $ 2,454,351 $ 568,230 $ 704,404 $ 2,318,177 Total Liabilities $ 2,454,351 $ 568,230 $ 704,404 $ 2,318,177 CFD 2000-01 South Etiwanda Assets: Cash and investments $ 326,043 $ 137,247 $ 356,430 $ 106,860 Receivables: Taxes 988 250 988 250 Accrued interest 194 85 194 85 Restricted assets: Cash and investments with fiscal agents 111,425 1,120,962 1,142,088 90,299 Total Assets $ 438,650 $ 1,258,544 $ 1,499,700 $ 197,494 Liabilities: Payable to trustee $ 438,650 $ 1,262,217 $ 1,503,373 $ 197,494 Total Liabilities $ 438,650 $ 1,262,217 $ 1,503,373 $ 197,494 CFD 2000-02 Rancho Cucamonga Corporate Park Assets: Cash and investments $ 483,824 $ 566,155 $ 658,676 $ 391,303 Receivables: Taxes 296 5,462 296 5,462 Accrued interest 288 307 288 307 Restricted assets: Cash and investments with fiscal agents 680,348 6,461,561 6,601,070 540,839 Total Assets $ 1,164,756 $ 7,033,485 $ 7,260,330 $ 937,911 Liabilities: Payable to trustee $ 1,164,756 $ 7,037,954 $ 7,264,799 $ 937,911 Total Liabilities $ 1,164,756 $ 7,037,954 $ 7,264,799 $ 937,911 192 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 (Continued) Balance Balance 7/1/2011 Additions Deductions 6/30/2012 AD 93-1 Masi Commerce Center Assets: Cash and investments $ 461,625 $ 257,806 $ 245,968 $ 473,463 Receivables: Accrued interest 274 371 274 371 Restricted assets: Cash and investments with fiscal agents 242,510 29 39 242,500 Total Assets $ 704,409 $ 258,206 $ 246,281 $ 716,334 Liabilities: Payable to trustee $ 704,409 $ 263,248 $ 251,323 $ 716,334 Total Liabilities $ 704,409 $ 263,248 $ 251,323 $ 716,334 CFD 2001-01 Series A Assets: Cash and investments $ 1,951,259 $ 1,292,840 $ 2,264,660 $ 979,439 Receivables: Taxes 13,706 14,246 13,706 14,246 Accrued interest 2 1 2 1 Restricted assets: Cash and investments with fiscal agents 3,217,220 12,704,414 15,032,835 888,799 Total Assets $ 5,182,187 $ 14,011,501 $ 17,311,203 $ 1,882,485 Liabilities: Payable to trustee $ 5,182,187 $ 14,027,250 $ 17,326,952 $ 1,882,485 Total Liabilities $ 5,182,187 $ 14,027,250 $ 17,326,952 $ 1,882,485 CFD 2001-01 Series B Assets: Cash and investments $ 46,192 $ 66,051 $ 86,227 $ 26,016 Restricted assets: Cash and investments with fiscal agents 110,884 - 110,884 - Total Assets $ 157,076 $ 66,051 $ 197,111 $ 26,016 Liabilities: Payable to trustee $ 157,076 $ 69,626 $ 200,686 $ 26,016 Total Liabilities $ 157,076 $ 69,626 $ 200,686 $ 26,016 193 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 Balance Balance 7/1/2011 Additions Deductions 6/30/2012 CFD 2003-01 Series A Assets: Cash and investments $ 1,065,453 $ 1,078,055 $ 1,075,181 $ 1,068,327 Receivables: Taxes 627 996 627 996 Accrued interest 633 838 633 838 Restricted assets: Cash and investments with fiscal agents 1,464,561 177 237 1,464,501 Total Assets $ 2,531,274 $ 1,080,066 $ 1,076,678 $ 2,534,662 Liabilities: Payable to trustee $ 2,531,274 $ 1,089,625 $ 1,086,237 $ 2,534,662 Total Liabilities $ 2,531,274 $ 1,089,625 $ 1,086,237 $ 2,534,662 CFD 2003-01 Series B Assets: Cash and investments $ 163,787 $ 208,355 $ 206,966 $ 165,176 Receivables: Accrued interest 97 130 97 130 Restricted assets: Cash and investments with fiscal agents 292,939 35 - 292,974 Total Assets $ 456,823 $ 208,520 $ 207,063 $ 458,280 Liabilities: Payable to trustee $ 456,823 $ 212,924 $ 211,467 $ 458,280 Total Liabilities $ 456,823 $ 212,924 $ 211,467 $ 458,280 CFD 2000-03 Rancho Summit Redemption Assets: Cash and investments $ 926,936 $ 804,488 $ 666,614 $ 1,064,810 Receivables: Taxes 8,582 - 8,582 - Accrued interest 550 835 550 835 Restricted assets: Cash and investments with fiscal agents 51,219 1,392 52,548 63 Total Assets $ 987,287 $ 806,715 $ 728,294 $ 1,065,708 Liabilities: Payable to trustee $ 987,287 $ 813,900 $ 735,479 $ 1,065,708 Total Liabilities $ 987,287 $ 813,900 $ 735,479 $ 1,065,708 194 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 (Continued) Balance Balance 7/1/2011 Additions Deductions 6/30/2012 CFD 2000-03 Rancho Summit Reserve Assets: Restricted assets: Cash and investments with fiscal agents $ 666,762 $ 33 $ 1,343 $ 665,452 Total Assets $ 666,762 $ 33 $ 1,343 $ 665,452 Liabilities: Payable to trustee $ 666,762 $ 80 $ 1,390 $ 665,452 Total Liabilities $ 666,762 $ 80 $ 1,390 $ 665,452 CFD 2004-01 Assets: Cash and investments $ 2,481,656 $ 3,394,607 $ 3,501,070 $ 2,375,193 Receivables: Taxes 13,441 25,907 13,441 25,907 Accrued interest 1,417 1,844 1,417 1,844 Restricted assets: Cash and investments with fiscal agents 2,856,627 41,598 122,679 2,775,546 Total Assets $ 5,353,141 $ 3,463,956 $ 3,638,607 $ 5,178,490 Liabilities: Accounts payable $ 2,551 $ 25,497 $ 27,574 $ 474 Payable to trustee 5,350,590 4,278,311 4,450,885 5,178,016 Total Liabilities $ 5,353,141 $ 4,303,808 $ 4,478,459 $ 5,178,490 CFD 2000-03 Park Maintenance Assets: Cash and investments $ 859,458 $ 398,335 $ 389,377 $ 868,416 Receivables: Taxes 3,783 5,565 3,783 5,565 Accrued interest 517 694 517 694 Total Assets $ 863,758 $ 404,594 $ 393,677 $ 874,675 Liabilities: Accounts payable $ 5,891 $ 88,770 $ 91,606 $ 3,055 Accrued liabilities - 6,506 - 6,506 Payable to trustee 857,867 411,343 404,096 865,114 Total Liabilities $ 863,758 $ 506,619 $ 495,702 $ 874,675 CFD 2006-01 Redemption Assets: Cash and investments $ 449,999 $ 487,955 $ 408,570 $ 529,384 Receivables: Taxes 1,844 2,774 1,844 2,774 Accrued interest 267 414 267 414 Restricted assets: Cash and investments with fiscal agents 379,650 41 44 379,647 Total Assets $ 831,760 $ 491,184 $ 410,725 $ 912,219 Liabilities: Payable to trustee $ 831,760 $ 497,149 $ 416,690 $ 912,219 Total Liabilities $ 831,760 $ 497,149 $ 416,690 $ 912,219 195 CITY OF RANCHO CUCAMONGA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS YEAR ENDED JUNE 30,2012 Balance Balance 7/1/2011 Additions Deductions 6/30/2012 CFD 2006-02 Redemption Assets: Cash and investments $ 234,197 $ 264,811 $ 226,707 $ 272,301 Receivables: Taxes - 4,105 - 4,105 Accrued interest 139 213 139 213 Restricted assets: Cash and investments with fiscal agents 197,782 22 12 197,792 Total Assets $ 432,118 $ 269,151 $ 226,858 $ 474,411 Liabilities: Payable to trustee $ 432,118 $ 273,915 $ 231,622 $ 474,411 Total Liabilities $ 432,118 $ 273,915 $ 231,622 $ 474,411 Employee Deduction Account Assets: Cash and investments $ 60,121 $ 312,869 $ 308,671 $ 64,319 Total Assets $ 60,121 $ 312,869 $ 308,671 $ 64,319 Liabilities: Accounts payable $ - $ 4,778 $ 4,056 $ 722 Due to external parties/other agencies 60,121 156,356 152,880 63,597 Total Liabilities $ 60,121 $ 161,134 $ 156,936 $ 64,319 Assessment District 82-2 Assets: Cash and investments $ 5 $ - $ - $ 5 Total Assets $ 5 $ - $ - $ 5 Liabilities: Payable to trustee $ 5 $ - $ - $ 5 Total Liabilities $ 5 $ - $ - $ 5 Totals-All Agency Funds Assets: Cash and investments $24,972,063 $ 15,647,679 $ 16,420,765 $ 24,198,977 Receivables: Accounts 1,500 - - 1,500 Taxes 94,984 75,077 94,984 75,077 Accrued interest 8,197 10,895 8,197 10,895 Restricted assets: - - - Cash and investments with fiscal agents 12,455,050 20,363,394 23,560,724 9,257,720 Total Assets $ 37,531,794 $ 36,097,045 $ 40,084,670 $ 33,544,169 Liabilities: Accounts payable $ 52,387 $ 1,263,209 $ 1,248,801 $ 66,795 Accrued liabilities 21,886 25,370 21,886 25,370 Deposits payable 7,498,364 1,045,269 861,399 7,682,234 Payable to trustee 29,899,036 33,037,292 37,230,155 25,706,173 Due to external parties/other agencies 60,121 156,356 152,880 63,597 Total Liabilities $ 37,531,794 $ 35,527,496 $ 39,515,121 $ 33,544,169 196 City of Rancho Cucamonga Comprehensive Annual Financial Report June 30, 2012 Statistical Section Certain schedules recommended for inclusion in Comprehensive Annual Financial Reports of Municipalities by the government Finance Officers Association have been omitted from this report. 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O N N U � o F"O "O 3 0 0 a c l a s t a o c Q y 0 m _ CDU) @ C N a) (6 N r 0 0: a) O "' E O O 0 x n _0 M a 3 > a °) m m w cc m R O. a� m@ c o 0) > Q H O o o .a as m > r`To a a) a v°) c aN m m 0 as U �° CO: E m a G a o s OIm °c m U 8 Q 00 LO d O OL Q y T L.. -0 3 -O Yaa)) c m y a) 6 cttn U > y > @ O w c c) m cn O c m a o a°i a a) EU) w o6 w £ d' `o N w as o m c LlJ t O m j m o a) w ° c d °' cam) .F m � 3 2 n o t cn 0) EW V = � � `- ru U > o 1 0 (�E a>i m e CO,-.o -0 0 j G c r n N o c !� c fn N r a) m a) O 0 wN . nO O M w N L L i NCCL0 rtl UUU2O 0 . o a0 nU N F O- M a a) z o 204 CITY OF RANCHO CUCAMONGA Principal Property Taxpayers Current Year and Nine Years Ago 2012 2003 Percent of Percent of Total City Total City Assessed Assessed Assessed Assessed Taxpayer Value Value Value Value Victoria Gardens Mall LLC $ 238,513,828 1.23% $ - 0.00% Homecoming I at Terra Vista LLC 118,951,269 0.61% - 0.00% T Napf Meritage Ownership LLC 117,364,505 0.60% - 0.00% Catellus Development Corporation 101,216,200 0.52% 63,238,561 0.64% EQR-Fanwell 2007 LP 95,229,844 0.49% - 0.00% Knickerbocker Properties Inc XLVII 83,117,847 0.43% - 0.00% PPF MF 9200 Milliken Ave LP 77,757,982 0.40% - 0.00% UDR Rancho Cucamonga LP 76,567,075 0.39% - 0.00% ARI-AOB 29 LLC 70,938,548 0.36% - 0.00% YTC Investments LLC 70,065,100 0.36% - 0.00% Western Land Properties - 0.00% 95,843,601 0.97% Recot, Inc. - 0.00% 81,828,866 0.83% Tamco Steel Subsidiary, Inc - 0.00% 62,224,036 0.63% West Coast Liquidators, Inc. - 0.00% 55,701,013 0.56% Mountain Vista Power Generation - 0.00% 53,990,037 0.55% LDC Cougar LLC - 0.00% 53,017,355 0.54% Schlosser Forge Company - 0.00% 45,122,188 0.46% Rancho Cucamonga 11, Inc. - 0.00% 45,029,599 0.46% Steelscape - 0.00% 38,427,445 0.39% $1,049,722,198 5.41% $594,422,701 6.02% Source: San Bernardino County Assessor 2002/03 and 2011/12 Combined Tax Rolls and the SBE Non Unitary Tax Roll; HdL, Coren & Cone 205 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 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% 2012 93,318,030 86,742,369 92.95% N/A 86,742,369 92.95% Note: Data provided by the San Bernardino County Auditor-Controller 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 Auditor-Controller/Treasurer/Tax Collector 206 CITY OF RANCHO CUCAMONGA Principal Sales Tax Remitters Current Year and Nine Years Ago 2012 2003 Business Name Business Category Business Name Business Cateaory Ameron International Contractors Albertsons Grocery Stores Liquor Apple Computer Electronics/Appliance Stores Albertsons Grocery Stores Liquor Bass Pro Shops Outdoor Worlc Sporting Goods/Bike Stores American Building Supply Contractors Best Buy Electronics/Appliance Stores Ameron International Contractors Chevron-Gasoline Sales Service Stations Ameron Steel Pipe Contractors Circle K Service Stations Best Buy Electronics/Appliance Stores Costco W/Gas Discount Department Stores Chevron -Gasoline Sales Service Stations Day Creek AM PM Service Stations Circle K Service Stations Day Creek Shell Service Stations Circuit City Electronics/Appliance Stores Home Depot Lumber/Building Materials Costco 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 Monoprice Office Supplies/Furniture Proficient Food Food Manufacturing NIC Partners Electrical Equipment Rancho Mobil Service Stations Novartis Animal Health Medical/Biotech Ross Family Apparel Rancho Mobil Service Stations Shell/Texaco Service Stations Sears Grand Department Stores Stater Bros. Grocery Stores Liquor Sharp Electronics Corp Electron ics/Appl ica nce Stores Tamco Heavy Industrial Shell-Gasoline Sales Service Stations Target Discount Department Stores Southwire Company Energy/Utilities Vineyard Mobil Service Stations 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 207 CITY OF RANCHO CUCAMONGA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year General Tax Total Ended Obligation Allocation Governmental June 30 Bonds Bonds 1 Loans Activities 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 2012 3 - - - - 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. 3 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, indebtedness was transferred to the Successor Agency. 208 Business-type Activities Utility Total Total Percentage Debt Revenue Certificates of Business-type Primary of Personal Per Bonds Participation Activities Government Income 2 Capita 2 - - - 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 7.67% 2,438 - - - 415,158,811 7.15% 2,336 - - 0.00% - 209 CITY OF RANCHO CUCAMONGA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Outstanding General Bonded Debt Fiscal Year General Tax Percent of Percentage Ended Obligation Allocation Assessed of Personal Per June 30 Bonds Bonds Total Value 1 Income 2 Capita 2 2003 - 210,555 210,555 2.13% 5.90% 1,536 2004 - 320,180 320,180 2.88% 8.17% 2,183 2005 - 317,135 317,135 2.53% 7.32% 2,049 2006 - 311,005 311,005 2.11% 6.46% 1,922 2007 - 304,685 304,685 1.74% 5.96% 1,787 2008 - 424,060 424,060 2.16% 7.81% 2,461 2009 - 413,655 413,655 2.00% 7.47% 2,373 2010 - 404,990 404,990 2.04% 6.98% 2,279 2011 - 395,920 395,920 2.03% 7.30% 2,213 2012 ' - - - 0.00% 0.00% - 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 2012 per capita personal income was not available as of the CAFR publication date. 3 As a result of the dissolution of the Redevelopment Agency on January 31, 2012, indebtedness was transferred to the Successor Agency. 210 CITY OF RANCHO CUCAMONGA Direct and Overlapping Debt June 30,2012 City Assessed Valuation $ 19,457,000 Redevelopment Agency Incremental Valuation 8,803,730 Adjusted Assessed Valuation $ 10,653,270 City Percentage Total Share of Applicable Debt 6/30/12 Debt Overlapping Tax and Assessment Debt: Metropolitan Water District 0.591% $ 196,545,000 1,161,581 Chaffey Community College District 19.538% 145,842,855 28,494,777 Chaffey Joint Union High School District 40.301% 86,055,000 34,681,026 Alta Loma School District 98.581% 16,588,941 16,353,544 Central School District 96.488% 21,041,415 20,302,441 Etiwanda School District CFD Nos. 1,2&3,2004-2&2007-1 100.000% 6,600,000 6,600,000 Etiwanda School District CFD No.7 21.530% 13,550,000 2,917,315 Etiwanda School District CFD No.8 68.006% 7,045,000 4,791,023 Etiwanda School District CFD No.9 70.844% 9,715,000 6,882,495 Etiwanda School District CFD Nos. 2004-2&2007-1 100.000% 15,245,000 15,245,000 Etiwanda School District Rancho Etiwanda Public Facilities Authority CFD No. 1 90.690% 19,115,000 17,335,394 Fontana Unified School District 0.927% 282,321,988 2,617,125 Upland Unified School District 0.419% 89,620,142 375,508 City of Rancho Cucamonga CFDs 100.000% 93,300,000 93,300,000 City of Rancho Cucamonga 1915 Act Bonds 100.000% 2,170,000 2,170,000 Total overlapping tax and assessment debt 1,004,755,341 253,227,229 Direct and Overlapping General Fund Debt San Bernardino County General Fund Obligations 9.360% 613,235,000 57,398,796 San Bernardino County Pension Obligations 9.360% 547,885,591 51,282,091 San Bernardino County Flood Control Dist General Fund Oblig 9.360% 108,210,000 10,128,456 Chaffey Community College District General Fund Obligations 19.538% 12,275,666 2,398,420 Cucamonga School District Certificates of Participation 28.993% 10,805,000 3,132,694 Fontana Unified School District Certificates of Participation 0.927% 49,910,000 462,666 Upland Unified School District General Fund Obligations 0.419% 830,000 3,478 City of Rancho Cucamonga General Fund Obligations 100.000% - - West Valley Vector Control District Certificates of Participation 25.327% 3,375,000 854,786 Total gross direct and overlapping general fund debt 1,346,526,257 125,661,387 Total net direct and overlapping general fund debt 125,661,387 Total overlapping debt $ 2,351,281,598 378,888,616 City direct debt - Total direct and overlapping debt $ 378,888,616 Notes: For debt repaid with property taxes,the percentage of overlapping debt applicable is estimated using taxable assesse 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 resident 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 211 CITY OF RANCHO CUCAMONGA Legal Debt Margin Information Last Ten Fiscal Years 2012 2011 2010 2009 Debt limit $ 399,497,598 $ 392,269,488 $ 396,560,873 $ 427,275,583 Total net debt applicable to limit - - - - Legal debt margin $ 399,497,598 $ 392,269,488 $ 396,560,873 $ 427,275,583 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 2012: 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 212 Fiscal Year 2008 2007 2006 2005 2004 2003 $ 414,196,025 $ 370,340,380 $ 321,072,427 $ 280,523,308 $ 247,538,676 $ 222,613,544 $ 414,196,025 $ 370,340,380 $ 321,072,427 $ 280,523,308 $ 247,538,676 $ 222,613,544 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% $ 10,653,269,276 399,497,598 $ 399,497,598 213 CITY OF RANCHO CUCAMONGA Pledged-Revenue Coverage Last Ten Fiscal Years (In Thousands) Tax Allocation Bonds Fiscal Year Ended Tax Debt Service June 30 Increment ' Principal Interest Coverage 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 2012 51,609 9,520 9,950 2.65 Notes: Details regarding the city's outstanding debt can be found in the notes to the financial statements. As a result of the dissolution of the Redevelopment Agency on January 31, indebtedness was transferred to the Successor Agency. Tax increment figures are net of related pass-through payments. 214 CITY OF RANCHO CUCAMONGA Demographic and Economic Statistics Last Ten Calendar Years Per Personal Capita Income' Personal Unemployment Calendar Population (in thousands) Income' Rate Year (1) (2) (2) (3) 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 170,479 5,110,790 29,979 2.8% 2007 172,331 5,431,528 31,518 3.9% 2008 174,308 5,540,903 31,788 5.1% 2009 177,736 5,804,680 32,659 8.6% 2010 178,904 5,423,296 30,314 9.4% 2011 168,181 - - 8.7% NOTES: 12011 Personal Income unavailable as of the CAFR publication date. Sources: (1) State Department of Finance (2) American Community Survey, Census Bureau 2010, Economics & Politics, Inc. (3) State of California Employment Development Department 215 CITY OF RANCHO CUCAMONGA Principal Employers Current Year and Nine Years Ago* 2012 2003 Percent of Percent of Number of Total Number of Total Employer Employees, Rank Employment Employees, Rank Employment Chaffey Community College 1,674 1 2.38% 475 8 0.87% Etiwanda School District 1,298 2 1.84% 933 1 1.71% City of Rancho Cucamonga 839 3 1.19% 850 3 1.55% Alta Loma School District 740 4 1.05% 705 2 1.29% Macy's 500 5 0.71% n/a n/a n/a Central School District 500 6 0.71% 520 7 0.95% Bass Pro Shops 472 7 0.67% n/a n/a n/a Schlosser Forge Company 348 8 0.49% n/a n/a n/a Wal-Mart Stores, Inc 339 9 0.48% 445 10 0.81% Nong Shim 330 10 0.47% n/a n/a n/a Mission Foods n/a n/a n/a 573 5 1.05% C. W. Construction n/a n/a n/a 550 6 1.01% Southern California Edison n/a n/a n/a 450 9 0.82% Frito-Lay, Inc. n/a n/a n/a 600 4 1.10% Note: "Total Employment"as used above represents the total employment of all employers located within City limits. 'Includes full-time and part-time employees. *Only the top ten employers for each year presented have data displayed. If a company did not rank in the top ten employers for both years presented, then one of the two years will state "n/a". **Data for prior year is only shown from the date of the City's implementation of GASB 34 forward. 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