HomeMy WebLinkAboutCity CAFR Final 6-30-10 2-16-11CITY OF LAKE ELSINORE, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
WITH REPORT ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
FOR THE YEAR ENDED JUNE 30, 2010
Prepared By: Department of Administrative Services
CITY OF LAKE ELSINORE, CALIFORNIA
TABLE OF CONTENTS
For the year ended June 30, 2010
Page
Number
INTRODUCTORY SECTION:
Letter of Transmittal i - vii
Organization Chart viii
Directory of Officials ix
FINANCIAL SECTION:
Independent Auditors' Report 1 - 2
Management's Discussion and Analysis (Required Supplementary Information) 3-14
Basic Financial Statements: 15
Government -wide Financial Statements:
Statement of Net Assets 16
Statement of Activities 17
Fund Financial Statements:
Governmental Funds:
Balance Sheet 18-19
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Assets 21
Statement of Revenues, Expenditures and Changes in Fund Balances 22-23
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of Activities 24
Agency Funds:
Statement of Fiduciary Assets and Liabilities 25
Notes to Basic Financial Statements 26-82
Required Supplementary Information: 83
Schedule of Funding Progress 84
Budgetary Comparison Schedules:
General Fund 85
Redevelopment Agency Special Revenue Fund 86
Note to Required Supplementary Information 87
CITY OF LAKE ELSINORE, CALIFORNIA
TABLE OF CONTENTS
(CONTINUED)
For the year ended June 30, 2010
Page
Number
FINANCIAL SECTION (CONTINUED):
Supplementary Information: 89
Other Governmental Funds: 91
Combining Balance Sheet 92
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 93
Other Special Revenue Funds:
94-95
Combining Balance Sheet
96-99
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances
100- 103
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Supplemental Law Enforcement Service Special Revenue Fund
104
L.L.E.B.G Program Special Revenue Fund
105
Office of Traffic and Safety Special Revenue Fund
106
Traffic Offender Special Revenue Fund
107
Gas Tax Special Revenue Fund
108
Transportation Special Revenue Fund
109
Traffic Safety Special Revenue Fund
110
Lighting and Landscaping Special Revenue Fund
111
L.L.M.D. No. 1 Special Revenue Fund
112
Air Pollution Special Revenue Fund
113
C.D.B.G Special Revenue Fund
114
Lakeside Facilities Special Revenue Fund
115
N.P.D.E.S. Special Revenue Fund
116
Other Capital Projects Funds: 117
Combining Balance Sheet 118-119
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 120-121
CITY OF LAKE ELSINORE, CALIFORNIA
TABLE OF CONTENTS
(CONTINUED)
For the year ended June 30, 2010
Page
Number
FINANCIAL SECTION (CONTINUED):
Supplementary Information (Continued):
Other Capital Projects Funds (Continued):
Schedules of Revenues, Expenditures and Changes in
Fund Balance - Budget and Actual:
Miscellaneous Grant Project Capital Projects Fund
122
Storm Drain Capital Projects Fund
123
Library Capital Improvement Capital Projects Fund
124
Traffic Improvements Capital Projects Fund
125
TUMF Capital Projects Fund
126
Redevelopment Agency Capital Projects Fund
127
Agency Funds: 129
Combining Statement of Assets and Liabilities 130
Combining Statement of Changes in Assets and Liabilities 131-132
Capital Assets: 133
Capital Assets Used in the Operation of Governmental Funds
Schedule by Source 134
STATISTICAL SECTION:
Description of Statistical Section Contents 135
Financial Trends:
Net Assets by Component - Last Eight Fiscal Years 136-137
Changes in Net Assets - Expenses and Program Revenues - Last Eight Fiscal Years 138-139
Changes in Net Assets - General Revenues - Last Eight Fiscal Years 140-141
Fund Balances of Governmental Funds - Last Eight Fiscal Years 142-143
Changes in Fund Balances of Governmental Funds - Last Eight Fiscal Years 144-145
CITY OF LAKE ELSINORE, CALIFORNIA
TABLE OF CONTENTS
(CONTINUED)
For the year ended June 30, 2010
Page
Number
STATISTICAL SECTION (CONTINUED):
Revenue Capacity:
Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years
147
Principal Property Taxpayers - Current Year and Nine Years Ago
148
Property Tax Levies and Collections - Last Ten Fiscal Years
149
Assessed Value and Estimated Actual Value of Taxable Property -
Last Ten Fiscal Years
150-151
Debt Capacity:
Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 152-153
Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 154
Direct and Overlapping Debt 155
Legal Debt Margin Information - Last Ten Fiscal Years 156- 157
Pledged Revenue Coverage - Last Ten Fiscal Years 158
Demographic and Economic Information:
Demographic and Economic Statistics - Last Ten Fiscal Years 159
Principal Employers - Current Year and Nine Years Ago 160
Operating Information:
Full -Time and Part-Time City Employees by Function - Last Ten Fiscal Years 161
Operating Indicators by Function - Last Ten Fiscal Years 162-163
Capital Asset Statistics by Function - Last Ten Fiscal Years 164
INTRODUCTORY SECTION
February 17, 2011
Honorable Mayor and City Council
Lake Elsinore, California
Submitted for your information and consideration is the June 30, 2010 Comprehensive Annual
Financial Report for the City of Lake Elsinore, California. Responsibility for both the accuracy of
the presented data and the completeness and fairness of the presentation, including all disclosures,
rests with the City. We believe the data, as presented, is accurate in all material aspects; that it is
presented in a manner designed to fairly set forth the financial activity of its various funds; and that
all disclosure necessary to enable the reader to gain an understanding of the City's financial affairs
have been included.
The significant accounting policies of the City are described in the notes to the financial
statements. These accounting policies have been reviewed by the City's independent certified
public accountants and are in conformance with the recommendations of the Governmental
Accounting Standards Board.
The City's Financial Statements have been examined by our independent auditors, Diehl, Evans &
Company, LLP.
The Financial Reporting Entity
For financial reporting purposes, in conformance with the criteria of Governmental Accounting
Standard Board "Defining the Governmental Reporting Entity ", this report includes the operating
statements and statements of financial position of the City of Lake Elsinore, the Lake Elsinore
Redevelopment Agency, the Lake Elsinore Public Financing Authority and the Lake Elsinore
Recreation Authority. While each is a separate legal entity, the City Council, acting as Council
and Board of Directors, exercises oversight responsibility for each. Each was organized for the
benefit of the City and its residents and conducts all activity within its boundaries. They are
therefore shown as blended Component Units. The Redevelopment Agency is reported as a
Special Revenue Fund, a Debt Service Fund and a Capital Project Fund. The Public Financing
Authority is reported as a Debt Service Fund. The Recreation Authority is reported as a Debt
Service Fund.
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Honorable Mayor and City Council
February 17, 2011
Services Provided
The City provides a wide range of municipal services for its citizens, including police, fire
services, parks, community services, planning and development, street lights and improvements
and general administration. Police and fire services are contracted through the County of
Riverside.
Reporting Standards
For reporting purposes, the City has adopted the provisions of Statement No. 1 of the
Governmental Accounting Standards Board (GASB), which established the authoritative status of
the pronouncements of its predecessor, the National Council on Governmental Accounting
(NCGA), and of the accounting and financial reporting guidance contained in the Industry Audit
Guide, Audits of State and Local Governmental Units, issued by the American Institute of
Certified Public Accountants. Through widespread acceptance, pronouncements of the NCGA,
GASB and the AICPA through its Industry Audit Guide, have long been acknowledged as the
primary authoritative statements of GAAP applicable to state and local government.
Financial Statement Format
This report is organized into three sections: introductory, financial and statistical.
The introductory section includes a table of contents, this transmittal letter, the City's principal
officers and its table of organization.
The financial section includes: (1) the Auditors' Report, (2) the MD &A which is intended to
disclose any known significant events or decisions that affect the financial condition of the City,
(3) the basic financial statements comprised of government -wide financial statements and fund
financial statements which provide an overview of the City's financial position and result of
operations, along with "notes" developed to ensure full disclosure and fair presentation,
(4) required supplementary information and (5) combining and individual fund financial statements
and schedules designed to present detailed information on individual funds, to demonstrate
compliance with finance-related legal and contractual requirements and to assure adequate
disclosure at the individual fund entity level.
The statistical section, which is unaudited, provides financial data usually covering more than two
years and other non - accounting data. The tables reflect financial trends, revenue capacity, debt
capacity, demographics, and operating information of the City government.
-u-
Honorable Mayor and City Council
February 17, 2011
Fund Descriptions
The various fund types used by the City and included in this report are as follows:
Fund Category
Governmental Funds
Fiduciary Funds
Fund Type
General Fund
Special Revenue Funds
Debt Service Funds
Capital Project Funds
Agency Funds
A description of these funds is included in the "Notes to the Basic Financial Statements ".
Budgetary Control and Accounting Basis
Budgetary control is maintained at the departmental level. To facilitate reporting, budgetary
control is maintained through computer - generated reports of the financial transactions of all City
funds. These reports allow for timely review and continuous assessment of the City's financial
condition. Capital Project expenditures are controlled at the project level.
The objective of budgetary control is to ensure compliance with legal provisions embodied in the
annual appropriated budget approved by the City Council and various Boards. Budgets are
adopted for the General Fund, certain Special Revenue Funds and certain Capital Project Funds.
The level of budgetary control is maintained at the expenditure object level for capital assets.
Schedules of acquisitions of capital assets at a cost of $5,000 or more are included.
Encumbrance accounting is utilized to assure effective budgetary control; purchase orders and
contracts are reviewed and a determination is made that valid and sufficient appropriations exist for
payment for ordered goods and services. Encumbrances outstanding at year -end do not constitute
expenditures or liabilities. Unencumbered appropriations lapse at year -end, and encumbrances
outstanding at that time are reported as a reserve of fund balance for subsequent year expenditures.
In developing and modifying the City's accounting system, consideration has been given to the
adequacy of internal accounting controls. Internal accounting controls are designed to provide
reasonable, but not absolute, assurance regarding the safeguarding of assets and the reliability of
financial records and maintaining accountability of assets.
The concept of reasonable assurance recognizes that the cost of control should not exceed its
benefits. The evaluation of this cost benefit relationship rests with management.
All internal control evaluations occur within the bounds as described. We believe that the City's
internal accounting controls adequately safeguard assets and provide reasonable assurance of
proper recording of financial transactions.
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Honorable Mayor and City Council
February 17, 2011
General Government Operations
Revenue for the governmental fund types totaled $62,604,468 for fiscal year 2009 -10. The amount
of revenues from various sources is shown in the following tabulation and represents an overall
decrease of $5,136,779 from the 2008 -09 fiscal year.
Significant revenue decreases in the Governmental Fund Types occurred in taxes, charges for
services and interest income. Taxes, primarily property taxes and sales taxes reflect the significant
downturn in the economy that began in 2008. Decreases which occurred in charges for services
and investment income are a result of the continued slowing of new development in the current
year and the decrease of interest rates for investments.
Expenditures for governmental purposes totaled $79,916,907 for fiscal year 2009 -10. Levels of
expenditures for major functions of the City are shown in the following tabulation:
Increase
Percent
Percent
(Decrease)
Of
Revenue Source
Amount
of Total
Prior Year
Change
Taxes
$ 33,947,170
54.2 %$(6,714,944)
$ 317,525
(16.5 %)
Licenses, permits and fees
2,587,918
4.1%
320,350
14.1%
Intergovernmental revenues
7,322,908
11.7%
3,692,764
101.7%
Charges for services
1,594,774
2.6%
(1,953,639)
(55.1 %)
Fines and forfeitures
733,792
1.2%
(203,714)
(21.7 %)
Investment income
7,928,611
12.7%
(1,516,488)
(16.1 %)
Special assessments
1,578,779
2.5%
96,633
6.5%
Other
6,910,516
11.0%
1,142,259
19.8%
TOTAL
&---h2,604 468
(5.136.779)
(7.6 %)
Significant revenue decreases in the Governmental Fund Types occurred in taxes, charges for
services and interest income. Taxes, primarily property taxes and sales taxes reflect the significant
downturn in the economy that began in 2008. Decreases which occurred in charges for services
and investment income are a result of the continued slowing of new development in the current
year and the decrease of interest rates for investments.
Expenditures for governmental purposes totaled $79,916,907 for fiscal year 2009 -10. Levels of
expenditures for major functions of the City are shown in the following tabulation:
-1V-
Increase
Percent
Percent
(Decrease)
Of
Amount
of Total
Prior Year
Change
General government
$ 6,797,320
8.5%
$ 317,525
4.9%
Public safety
11,022,531
13.8%
(2,116,858)
(16.1 %)
Community development
3,049,501
3.8%
(1,612,502)
(34.6 %)
Public services
12,901,064
16.1%
698,093
5.7%
Community services
3,313,082
4.2%
(437,185)
(11.7 %)
Pass - through payments
7,782,513
9.7%
(1,864,809)
(19.3 %)
Set aside suspension
3,750,000:
4.7%
3,750,000
-
SERAF payments
6,976,853
8.7%
6,976,853
-
Capital expenditures
4,394,843
5.5%
(33,719,032)
(88.5 %)
Refunding bond payment
1,987,745
2.5%
1,987,745
-
Bond issue costs
1,584,965
2.0%
1,584,965
-
Debt service and costs
16,356,490
20.5%
819,975
5.3%
TOTAL
79,916.907
123.6152301
(22.8 %)
-1V-
Honorable Mayor and City Council
February 17, 2011
The overall expenditure decrease for the governmental fund types totaled $23,615,230. Increases
in public services (related to special revenue funds), SERAF payment to the County as authorized
by the State and the related set aside suspension for the housing fund and debt service are offset by
decreases in public safety, community development, community services (park and recreation and
lake services), one -time capital project expenditures and pass - through payments.
Other financing sources net of uses is balanced and represents funds transferred for maintenance,
capital and debt services.
Cash Management
Cash temporarily idle during the year was invested in time certificates of deposit, State Local
Agency Investment Fund and Government- backed securities throughout the year.
The City's investment policy continues to rely on safety and liquidity as primary concerns.
Risk Management
The City is a member of the Southern California Joint Powers Insurance Authority which provides
coverage for liability, facility and automobile protection. The Authority utilizes a staff of risk
managers to assist member agencies in all aspects of coverage and safety issues. Workers
compensation coverage is still underwritten by the California State Compensation Corporation.
Debt Administration
The City of Lake Elsinore, not including the component units, has no outstanding bond debt as of
June 30, 2010.
The City's Financing Authority, a joint powers authority between the City and Redevelopment
Agency, was put in place to provide an economical and cost effective pool of funds to acquire
authorized local public obligations.
Certain bonds issued and sold through the Financing Authority were authorized under the
Marks -Roos Local Bond Pooling Act of 1985.
Major Initiatives for the Year and Prospects for the Future
Although the current economic down turn has slowed City growth, the City Council's budgetary
and legislative priorities continue to be public safety and transportation.
-v-
Honorable Mayor and City Council
February 17, 2011
Public Safety
The City Council has made public safety its number one operating budget priority. The public
safety budget decreased $2,116,858 amounting to -16.1% of the total decrease in the governmental
expenditures due to the reduction in tax revenue available.
Transportation
Improving circulation to keep pace with growth is a major City Council goal. The strategies used
by the City Council include partnering with the Riverside County Transportation Commission and
other entities, such as Caltrans, to prioritize transportation projects and funding and updating the
City's General Plan, including the circulation element. Major projects completed during the year
included the State Route 74/ Interstate 15 interim interchange improvements and various
improvements and maintenance of City -owned streets.
Given the City Council's dedication to quality of life, while being committed to preserving our
heritage and improving public safety, the City of Lake Elsinore is a place to dream extreme.
Independent Audit
State statutes require an annual audit by independent certified public accountants. The firm of
Diehl, Evans & Company, LLP was selected by the City Council and has just finished their third
year. Auditing standards generally accepted in the United States of America and the standards set
forth in the General Accounting Office's Government Auditing Standards were used by the
auditors in conducting the engagement. The auditors' report on the basic financial statements is
included in the financial section of this report.
-vi-
Honorable Mayor and City Council
February 17, 2011
Acknowledgments
We wish to express appreciation to all Finance Division staff for their contribution to the
department during this fiscal year. Their efforts are reflected in this report and in other documents
resulting from the annual financial management process.
The Mayor, members of the City Council and Management are to be commended for their interest
and support in conducting financial operations of the City in a responsible and progressive manner.
Respectfully submitted,
CITY OF LAKE ELSINORE
Robert A. Bra
City Manager
Q)a�� 7 1 9&�
J R. Riley, CPA
D' for of Administrative Services
- vii -
CITY OF
LAS LSINOR-E City of Lake Elsinore
-` Dluns, exthrMi
2009 -2010 Organizational Chart
II PUBLIC SAFETY ADVISORY COMMISSION II
II PLANNING COMMISSION II
Manager
June 30, 2010
City Council
Redevelopment Agency
Public Finance
Authority
LE Recreation Authority
(Elected Officials)
CITY MANAGERS OFFICE
CITY ATTORNEY
CITY CLERK
FIRE DEPARTMENT I POLICE DEPARTMENT II II LAKE & AQUATIC RES DEPT I I DEPT
COMMUNITY DEV DEPT 11 IF ADMIN SERVICES DEPT PUBLIC WORKS DEPT
— viii —
CITY OF LAKE ELSINORE
DIRECTORY OF OFFICIALS*
June 30, 2010
ELECTED OFFICIALS
Amy Bhutta
Mayor
Robert E. Magee
Mayor Pro Tern
Daryl Hickman
Councilmember
Melissa A. Melendez
Councilmember
Brian Tisdale
Councilmember
Allen Baldwin Treasurer
ADMINISTRATION
Robert A. Brady
City Manager
Virginia Bloom
City Clerk
Barbara Liebold
City Attorney
Pat Kilroy
Director of Lake, Parks & Recreation
James R. Riley
Director of Administrative Services
Ken Seumalo
Director of Public Works
Vacant
Director of Community Development
*At date of issuance
-ix -
FINANCIAL SECTION
DIEHL, EVANS & COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS
A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS
5 CORPORATE PARK, SUITE 100
IRVINE, CALIFORNIA 92606 -5165
(949) 399 -0600 • FAX (949) 399 -0610
www.diehlevans.com
City Council Members
City of Lake Elsinore
Lake Elsinore, California
MICHAEL R LUDIN, CPA
CRAIG W. SPRAKER, CPA
NITIN P. PATEL, CPA
ROBERT 1, CALLANAN, CPA
*PHILIP H. HOLTKAMP, CPA
*THOMAS M. PERLOWSKI, CPA
*HARVEY J.SCHROEDER,CPA
KENNETH R_ AMES, CPA
WILLIAM C. PENTZ, CPA
February 7, 2011 *A PROFESSIONAL CORPORATION
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of the City of Lake Elsinore, as of and for the year
ended June 30, 2010, which collectively comprise the City's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the City of Lake Elsinore's
management. Our responsibility is to express opinions on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the City's internal control over financial
reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the City of Lake Elsinore, as of June 30, 2010, and the respective
changes in financial position for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
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OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330
CARLSBAD, CALIFORNIA 92008 -2389 ESCONDIDO, CALIFORNIA 92025 -2598
(760) 729 -2343 • FAX (760) 729 -2234 (760) 741 -3141 • FAX (760) 741 -9890
In accordance with Government Auditing Standards, we have also issued our report dated
February 7, 2011 on our consideration of the City of Lake Elsinore's internal control over financial
reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on the internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
The management's discussion and analysis, the schedule of funding progress and budgetary
comparison schedules, identified as required supplementary information in the table of contents, are
not a required part of the basic financial statements but are supplementary information required by the
accounting principles generally accepted in the United States of America. This information is 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
management's discussion and analysis and the schedule of funding progress 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 the audit of the basic financial statements. We do not express an
opinion or provide any assurance on the management's discussion and analysis and the schedule of
funding progress because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance. The budgetary comparison schedules and related note have been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the budgetary comparison schedules and
related note are fairly stated in all material respects in relation to the basic financial statements taken as
a whole.
Our audit was made for the purpose of forming opinions on the financial statements that collectively
comprise the City's basic financial statements. The combining statements and individual fund
schedules are presented for purposes of additional analysis and are not a required part of the basic
financial statements of the City. Such information is the responsibility of management and was
derived from and relates 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 basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare
the basic 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 basic financial
statements taken as a whole.
Our audit was conducted for the purpose of forming an opinion on the basic financial statements of the
City of Lake Elsinore, California as a whole. The introductory section and statistical section are
presented for purposes of additional analysis and are not a required part of the basic financial
statements. Such information has 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. LtP
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CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS
June 30, 2010
As management of the City of Lake Elsinore, we offer readers of the City of Lake Elsinore's financial
statements this narrative overview and analysis of the financial activities of the City of Lake Elsinore
for the fiscal year ended June 30, 2010. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal,
which can be found at the beginning of the Comprehensive Annual Financial Report.
FINANCIAL HIGHLIGHTS
■ The assets of the City of Lake Elsinore exceeded its liabilities at the close of the most recent fiscal
year by $160.1 million (net assets).
■ The government's total net assets decreased by $7.2 million. The decrease is primarily attributable
to significant decreases in property taxes, sales taxes and investment income.
■ At the end of the current fiscal year, unreserved fund balance for the General Fund was
$6.3 million or 26.5 percent of total General Fund expenditures. City Council has designated
$5.7 million of the $6.3 million for future contingencies.
■ The City of Lake Elsinore's total debt had a net decrease of $1.5 million during the current fiscal
year. The net decrease includes $4.3 million of payments on long -term bonds, developer
agreements, loans, deferred amounts, insurance premium deposit payable and capital leases. The
increases included $2.8 million for net increase in tax allocation bonds due to refunding, other post
employment obligations and compensated absences.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City of Lake Elsinore's
basic financial statements. The City of Lake Elsinore's basic financial statements comprise of three
components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the
basic financial statements. This report also contains other supplementary information in addition to the
basic financial statements themselves.
See independent auditors' report.
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CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of
the City of Lake Elsinore's finances, in a manner similar to a private- sector business.
The statement of net assets presents information on all of the City of Lake Elsinore's assets and
liabilities, with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of the City of
Lake Elsinore is improving or deteriorating.
The statement of activities presents information showing how the government'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 cashflows. Thus, revenues
and expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The governmental activities of the City of Lake Elsinore include general government, public safety,
community development, public services and community services.
The government -wide financial statements can be found on pages 16 - 17 of this report.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City of Lake Elsinore, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance- related legal
requirements. All of the funds of the City of Lake Elsinore can be divided into two categories:
governmental funds and fiduciary funds.
Governmental Funds
Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government -wide financial statements. However, unlike the government -wide
financial statements, governmental funds financial statements focus on near -term inflows and outflows
of spendable resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government's near -term financing requirements.
See independent auditors' report.
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CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
Governmental Funds (Continued)
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By
doing so, readers may better understand the long -term impact of the government's near -term financing
decisions. Both the governmental fund balance sheet and the governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental funds and governmental activities. ,
The City of Lake Elsinore maintains various 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 Redevelopment Agency Special
Revenue Fund, the Redevelopment Agency Debt Service Fund and the Public Financing Authority
Debt Service Fund, which are considered to be major funds. Data from other governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these other
governmental funds is provided in the form of combining statements elsewhere in this report.
The City of Lake Elsinore adopts an annual appropriated budget for its General Fund, certain Special
Revenue and certain Capital Projects Funds. A budgetary comparison statement has been provided for
the General Fund and certain Special Revenue Funds to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 18 - 19 and 22 - 23 of this
report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefits of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial statement
because the resources of those funds are not available to support the City of Lake Elsinore's own
programs.
The basic fiduciary fund financial statements can be found on page 25 of this report.
Notes to the Basic 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 basic financial statements can be
found on pages 26 - 82 of this report.
See independent auditors' report.
-5-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
Other Information
In addition to the basic financial statements and accompanying notes, this report also presents certain
required supplementary information. Required supplementary information can be found starting on
page 83 of this report. The combining statements referred to earlier in connecting with other
governmental funds are presented immediately following the required supplementary information.
Combining and individual fund statements and schedules can be found on pages 89 - 134 of this report.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
As noted earlier, net assets may serve over time as a useful indicator of a government's financial
position. In the case of the City of Lake Elsinore, assets exceeded liabilities by $160.1 million at the
close of the most recent fiscal year.
Condensed Statements of Net Assets
Governmental Activities
As Restated
2010 2009
Assets:
Current and other assets
$ 150,421,619
$ 158,466,108
Capital assets
156,708,348
155,645,858
Total Assets
307,129,967
314,111,966
Liabilities:
Long -term debt outstanding
127,709,799
129,225,454
Other liabilities
19,326,031
17,617,570
Total Liabilities
147,035,830
146,843,024
Net Assets:
Invested in capital assets,
net of related debt
142,968,348
141,550,858
Restricted
110,984,917
122,510,612
Unrestricted
(93,859,128)
(96,792,528)
Total Net Assets
160,094,137
167,268,942
See independent auditors' report.
-6-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
For the City of Lake Elsinore, 89.3% of the net assets reflect its investment in capital assets (e.g., land,
buildings, machinery, equipment, and infrastructure); less any related debt used to acquire those assets
that is still outstanding. The City of Lake Elsinore uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the City of Lake
Elsinore's investment in its capital assets is reported net of related debt, it should be noted that the
resources needed to repay this debt must be provided from other sources, since the capital assets
themselves cannot be used to liquidate these liabilities.
An additional portion of the City of Lake Elsinore's net assets (69.3 %) represents resources that are
subject to external restrictions on how they may be used. The deficit balance of approximately
-$93.9 million in unrestricted net assets reflects the fact that governmental activities raise resources
based on when liabilities are expected to be paid, rather than when they are incurred. Most
governments do not have sufficient current resources on hand to cover current and long term liabilities.
The deficit in and of itself should not be considered an economic or financial difficulty; however, it
does measure how far the City has committed the government's future tax revenues for purposes other
than capital acquisition.
The government's total net assets decreased by $7.2 million. The decrease is primarily attributable to
significant decreases in property taxes, sales taxes and investment income.
See independent auditors' report.
-7-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
Condensed Statements of Revenues,
Expenses and Changes in Net Assets
Revenues:
Program Revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General Revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Other taxes
Fines, forfeitures and penalties
Investment income
Miscellaneous
Total Revenues
Expenses:
General government
Public safety
Community development
Public services
Community services
Interest on long -term debt
Total Expenses
Change in net assets
Net assets at beginning of year, as restated
Net assets at end of year
See independent auditors' report.
-8-
Governmental Activities
2010 2009
$ 5,684,978
4,561,669
25,904,948
6,236,748
1,792,699
519,001
733,792
7,470,635
6,661,239
59,565,709
10,252,727
11,022,531
15,847,532
14,812,199
4,295,719
10,509,806
66,740,514
(7,174,805)
167,268,942
160,094,137
$ 7,374,620
6,482,888
31,590,868
6,414,419
1,824,890
751,794
937,506
9,334,141
5,768,257
70,479,383
10,562,122
13,139,389
31,976,146
14,123,738
4,737,856
10,168,917
84,708,168
(14,228,785)
181 ,497,727
$ 167.268.942
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
Expenses and Program Revenues — Governmental Activities
Revenues by Sources — Governmental Activities
Miscellaneous
6,661,239
Charges for services
11 %
5,684,978
Investment income
10% Operating grants
7,470,635
and contributions
13%
4,561,669
Fines, forfeitures
8 ° -0
andpenalties
733,792
1 %
Capital grants and
Othertaxes
contributions
519,001
-
1%
0%
Franchise taxes
1,792,699
3%
Property taxes
Sales taxes
25,904,948
6,236,748
43%
10%
See independent auditors' report.
-9-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
As noted earlier, the City of Lake Elsinore uses fund accounting to ensure and demonstrate compliance
with finance- related legal requirements.
Governmental Funds
The focus of the City of Lake Elsinore'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 of Lake Elsinore's financing requirements. In particular, unreserved fund balance may serve as a
useful measure of a government's net resources available for spending at the end of the fiscal year.
As of the end of the current fiscal year, the City of Lake Elsinore's governmental funds reported
combined ending fund balances of $160.6 million, a decrease of $10.2 million in comparison with the
prior year. Of the $160.6 million ending fund balance, a net -$9.5 million ( -$28.3 million for the
Redevelopment Agency Debt Service Funds, offset by $18.8 million related to all other funds
combined) constitutes unreserved fund balance, which is available for spending at the government's
discretion. The remainder of fund balance is reserved to indicate that it is not available for new
spending because it has already been committed 1) to pay debt service ($65.7 million); 2) to liquidate
contracts and purchase orders of the prior period ($0.7 million); or 3) fund balance reserved for
noncurrent assets, such as loans receivable, prepaid expenditures, advances to other funds, land held
for resale, specific projects and low and moderate income housing ($103.6 million).
The General Fund is the chief operating fund of the City of Lake Elsinore. At the end of the current
fiscal year, unreserved fund balance of the General Fund was $ 6.3 million, while total fund balance
was $14.9 million. As a measure of the General Fund's liquidity, it may be useful to compare both
unreserved fund balance and total fund balance to total fund expenditures. Unreserved general fund
balance represents 26.5% of total General Fund expenditures, while total fund balance represents
62.4% of that same amount.
See independent auditors' report.
-10-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED)
The fund balance of the City of Lake Elsinore's General Fund decreased by $2.4 million during the
current fiscal year. Key factors in this decrease are as follows:
■ $.7 million of non - recurring contributions as transfers out of the General Fund to capital project
funds and special revenue funds.
■ Transfer in from other funds totaled $20,000.
■ Expenditures were greater than revenue of approximately $1.8 million.
GENERAL FUND BUDGETARY HIGHLIGHTS
The difference between the original budget and the final amended budget reflects a $0.2 million net
increase in appropriations, including transfers out and can be briefly summarized as follows:
■ $210,032 increase in general government activities
■ $ 11,516 increase for public safety
■ $ 1,406 increase in community development
■ $278,170 increase in public services
■ $ 31,852 decrease to community services
■ $300,000 in decreases in transfers out for one -time capital items.
See independent auditors' report.
- 11 -
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City of Lake Elsinore's investment in capital assets for its governmental activities as of
June 30, 2010 amounts to $156.7 million (net of accumulated depreciation). This investment in capital
assets included land, buildings, improvements, machinery and equipment, and infrastructure. The total
increase in the City of Lake Elsinore's investment in capital assets for the current fiscal year was I%.
Major or notable capital asset events during the current fiscal year included the following:
■ Machado Park restroom replacement
■ State Route 74/ Interstate 15 interim interchange improvements
■ Other improvements and maintenance of City -owned streets
Capital Assets at Year -End
(Net of Depreciation)
Land
Construction in progress
Buildings and structures
Improvements other than buildings
Machinery and equipment
Furniture and fixtures
Automotive equipment
Infrastructure
Totals
Governmental Activities
2010 2009
$ 5,352,814
14,311,848
14,788,395
3,832,429
737,189
88,450
572,474
117,024,749
156,708,348
$ 5,402,814
10,341,987
15,084,524
3,993,086
652,556
99,642
754,488
119,316,761
155.645.858
Additional information on the City of Lake Elsinore's capital assets can be found in note 3 of this
report.
See independent auditors' report.
-12-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED)
Long -Term Debt
At year -end, the City has a number of debt issues outstanding. These issues include $53.7 million of
local agency revenue bonds, $54.5 million of tax allocation bonds, $13.7 million of revenue refunding
bonds, $2.7 million of disposition and development agreements debt, $0.6 million of owner
participation agreement debt, $0.3 million of loans payable, $0.5 million in insurance premium deposit
payable and $2.1 in OPEB obligation.
Outstanding Debt
Local agency revenue bonds
Tax allocation bonds
Deferred amounts
Revenue refunding bonds
Disposition and development agreements
Owner participation agreements
Loans payable
Capital leases
Insurance premium deposit payable
Other post - employment benefit obligation
Compensated absences
Totals
Governmental Activities
2010 2009
$ 53,725,000
54,545,000
(1,063,668)
13,740,000
2,739,986
523,588
256,720
518,521
2,086,786
637,866
127.709,799
$ 56,475,000
52,785,000
(86,128)
14,095,000
2,807,940
633,101
307,542
20,316
537,869
1,048,397
601,417
129.225.454
Additional information on the City of Lake Elsinore's long -term debt can be found in notes 6
through 8 and note 17 of this report.
See independent auditors' report.
-13-
CITY OF LAKE ELSINORE, CALIFORNIA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
June 30, 2010
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Property taxes are estimated to continue to decrease due primarily to declines in property value
related to reassessments, corrections and appeals. The increase in foreclosures has also
significantly impacted property tax revenue.
The retail sales trends have increased slightly and the projections are expected to continue to
increase slowly during the next year.
■ Investment earnings are estimated to remain low due to declining interest rates.
These factors were considered in preparing the City of Lake Elsinore's budget for fiscal year 2010 -11.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of the City of Lake Elsinore's finances
for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed
to the City of Lake Elsinore, Director of Administrative Services, 130 South Main Street,
Lake Elsinore, California, 92530, jriley_klake- elsinore.org.
See independent auditors' report.
REIR
BASIC FINANCIAL STATEMENTS
-15-
CITY OF LAKE ELSINORE, CALIFORNIA
STATEMENT OF NET ASSETS
June 30, 2010
ASSETS:
Cash and investments (Note 2)
Accounts receivable
Accrued interest receivable
Due from other governments
Prepaid and other assets
Land held for resale (Note 4)
Deferred charges
Restricted assets (Note 2):
Cash and investments with fiscal agents
Capital assets, not depreciated (Note 3)
Capital assets, depreciated, net (Note 3)
TOTAL ASSETS
LIABILITIES:
Accounts payable
Accrued liabilities
Other payroll liabilities
Deposits and other liabilities
Due to other governments
Interest payable
Unearned revenue
Noncurrent liabilities (Note 6):
Due within one year
Due in more than one year
TOTAL LIABILITIES
NET ASSETS:
Invested in capital assets, net of related debt
Restricted for:
Debt service
Specific programs
Specific capital projects
Unrestricted (deficit)
TOTAL NET ASSETS
Governmental
Activities
$ 62,700,797
700,319
1,307,227
8,116,755
875,343
8,803,167
4,406,136
63,511,875
19,664,662
137,043,686
307,129,967
8,237,430
171,258
14,850
7,919
7,253,502
1,683,952
1,957,120
7,103,749
120,606,050
147,035,830
142,968,348
35,637,418
61,086,907
14,260,592
(93,859,128)
$ 160,094,137
See independent auditors' report and notes to basic financial statements.
NVOT
CITY OF LAKE ELSINORE, CALIFORNIA
STATEMENT OF ACTIVITIES
June 30, 2010
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Other taxes
Fines, forfeitures and penalties
Investment income
Miscellaneous
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR,
AS RESTATED (NOTE 14)
See independent auditors' report and notes to basic financial statements.
-17-
25,904,948
6,236,748
1,792,699
519,001
733,792
7,470,635
6,661,239
49,319,062
(7,174,805)
167,268,942
$ 160,094,137
Net (Expense)
Revenue and
Changes in
Program Revenues
Net Assets
Charges
Operating Capital
for
Grants and Grants and
Governmental
Functions /programs
Expenses
Services
Contributions Contributions
Activities
Governmental activities:
General government
$ 10,252,727
$ 3,181,706
$ 195,454 $ -
$ (6,875,567)
Public safety
11,022,531
-
347,129 -
(10,675,402)
Community development
15,847,532
924,493
- -
(14,923,039)
Public services
14,812,199
-
4,019,086 -
(10,793,113)
Community services
4,295,719
1,578,779
- -
(2,716,940)
Interest on long -term debt
10,509,806
-
- -
(10,509,806)
Total governmental
activities
$ 66,740,514
$ 5,684,978
$ 4,561,669 $ -
(56,493,867)
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Other taxes
Fines, forfeitures and penalties
Investment income
Miscellaneous
Total general revenues
Change in net assets
NET ASSETS - BEGINNING OF YEAR,
AS RESTATED (NOTE 14)
See independent auditors' report and notes to basic financial statements.
-17-
25,904,948
6,236,748
1,792,699
519,001
733,792
7,470,635
6,661,239
49,319,062
(7,174,805)
167,268,942
$ 160,094,137
CITY OF LAKE ELSINORE, CALIFORNIA
BALANCESBEET
GOVERNMENTAL FUNDS
June 30, 2010
See independent auditors' report and notes to basic financial statements.
-18-
Redevelopment
Debt Service Funds
Agency
Public
General
Special Revenue
Redevelopment
Financing
ASSETS
Fund
Fund
Agency
Authority
Cash and investments
6,052,485
12,393,459
$ 23,103,587
$ 397,692
Cash and investments with fiscal agents
-
1,461,936
3,325,656
57,444,803
Accounts receivable
609,679
-
-
-
Accrued interest receivable
3,099
27,918
21,312
449
Loans receivable (Note 5)
-
-
-
54,545,000
Due from other funds (Note 12)
1,689,634
-
4,809,388
-
Due from other governments
2,432,663
64,763
31,798
3,111,521
Advances to other funds (Notes 8 and 12)
7,671,235
37,401,756
-
-
Prepaid and other assets
769,235
-
106,108
-
Land held for resale
-
2,714,687
-
-
TOTAL ASSETS
19,228,030
54,064,519
31,397,849
115,499,465
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$ 3,241,502
$ 382,303
$ 3,520,810
$ -
Accrued liabilities
157,318
-
-
-
Other payroll liabilities
14,850
-
-
-
Deposits and other liabilities
6,219
-
-
-
Due to other funds (Note 12)
-
-
1,292,885
5,515
Due to other governments
877,342
-
6,376,160
-
Advances from other funds (Notes 8 and 12)
-
-
45,072,991
-
Deferred revenue
13,480
19,361,317
-
TOTAL LIABILITIES
4,310,711
19,743,620
56,262,846
5,515
FUND BALANCES (DEFICIT):
Reserved (Note 13):
Debt service
-
1,461,936
3,325,656
60,948,950
Encumbrances
23,379
-
-
-
Specific projects
129,669
-
-
-
Loans receivable
-
-
-
54,545,000
Advances to other funds
7,671,235
18,040,439
-
-
Low and moderate income housing
-
12,103,837
-
-
Prepaid and other assets
769,235
-
106,108
-
Land held for resale
-
2,714,687
-
-
Capital placement
-
-
-
-
Unreserved, Reported in:
General fund
6,323,801
-
-
-
Special revenue funds
-
-
-
-
Debt service funds
-
-
(28,296,761)
-
Capital projects funds
-
-
-
-
TOTAL FUND BALANCES (DEFICIT)
14,917,319
34,320,899
(24,864,997)
115,493,950
TOTAL LIABILITIES
AND FUND BALANCES
$ 19,228,030
$ 54,064,519
$ 31,397,849
$ 115,499,465
See independent auditors' report and notes to basic financial statements.
-18-
Other
Total
Governmental
Governmental
Funds
Funds
$ 20,753,574
$ 62,700,797
1,279,480
63,511,875
90,640
700,319
11,213
63,991
-
54,545,000
45,595
6,544,617
1,583,258
7,224,003
-
45,072,991
-
875,343
6,088,480
8,803,167
29,852,240
250,042,103
$ 1,092,815 $ 8,237,430
13,940
171,258
-
14,850
1,700
7,919
5,246,217
6,544,617
-
7,253,502
-
45,072,991
2,783,294
22,158,091
9,137,966
89,460,658
3,065
65,739,607
704,910
728,289
1,412,476
1,542,145
-
54,545,000
-
25,711,674
-
12,103,837
-
875,343
6,088,480
8,803,167
18,000
18,000
-
6,323,801
6,999,090
6,999,090
(8,884)
(28,305,645)
5,497,137
5,497,137
20,714,274
160,5 81,445
$ 29,852,240 $ 250,042,103
-19-
THIS PAGE INTENTIONALLY LEFT BLANK
-20-
CITY OF LAKE ELSINORE, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
June 30, 2010
Fund balances for governmental funds
Amounts reported for governmental activities in the Statement of Net Assets are
different because:
Interfund loans receivable not reported in the Statement of Net Assets.
Capital assets used in governmental activities are not financial resources and,
therefore, are not reported in the funds.
Long -term liabilities applicable to the City governmental activities are not due and
payable in the current period and accordingly are not reported as fund liabilities.
Interest on long -term liabilities is not accrued in governmental funds, but rather is
recognized as an expenditures when due. Unamortized bond issuance costs are
not current financial resources and are not reported in the funds long -term
liabilities and unamortized discount reported in the Statement of Net Assets
are:
Deferred charges
Deferred amount on refunding
Bond discount
Bond premium
Interest payable
Long -term liabilities
Long -term assets are not available to pay for current period expenditures and,
therefore, are deferred in the fund financial statements
Interest receivable
Due from other governments
Interest on interfund loans and other receivables reported in the special revenue
funds are not available soon enough to pay for current- period expenditures,
and therefore they are reported as deferred revenue in the funds.
Balance at June 30, 2010 totaled:
Net assets of governmental activities
See independent auditors' report and notes to basic financial statements.
-21-
$ 4,406,136
1,118,769
164,120
(219,221)
(1,683,952)
(128,773,467)
$ 1,243,236
1.732.406
$ 160,581,445
(54,545,000)
156,708,348
(124,987,615)
2,975,642
19.361.317
$ 160,094,137
CITY OF LAKE ELSINORE, CALIFORNIA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended June 30, 2010
Redevelopment
Debt Service Funds
Agency
Public
General
Special Revenue
Redevelopment
Financing
REVENUES:
Fund
Fund
Agency
Authority
Property taxes
5,552,290
225,411
19,651,643
-
Other taxes
8,517,826
-
-
-
Licenses, permits and fees
1,663,425
-
-
-
Intergovernmental revenues
195,454
-
-
-
Charges for services
1,594,774
-
-
-
Fines, forfeitures and penalties
432,663
-
-
-
Investment income
310,722
133,564
120,876
6,931,548
Special assessments
-
-
-
-
Miscellaneous
3,844,090
717,727
2,159
-
TOTAL REVENUES
22,111,244
1,076,702
19,774,678
6,931,548
EXPENDITURES:
Current:
General government
5,721,152
-
-
7,112
Public safety
11,022,531
-
-
-
Community development
1,814,893
-
1,234,608
-
Public services
2,006,185
-
-
-
Community services
3,313,082
-
-
-
Pass - through payments
-
-
7,782,513
-
Set aside suspension
-
-
3,750,000
-
SERAF payments
-
-
6,976,853
-
Capital outlay
-
1,030,615
-
-
Debt service:
Payment to refunding bond escrow agent
-
1,295,449
692,296
-
Bond issuance costs
-
878,354
706,611
-
Principal retirement
20,316
440,450
1,177,004
4,045,000
Interest and fiscal charges
400
731,062
2,924,884
6,626,786
TOTAL EXPENDITURES
23,898,559
4,375,930
25,244,769
10,678,898
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(1,787,315)
(3,299,228)
(5,470,091)
(3,747,350)
OTHER FINANCING SOURCES (USES):
Discount on bonds
-
(119,642)
(47,143)
-
Refunding bonds issued
-
15,655,000
10,635,000
-
Payment to refunding bond escrow agent
-
(13,228,136)
(8,854,512)
-
Loans issued
-
-
-
26,290,000
Loan payments
-
-
-
(23,235,000)
Transfers in
20,000
-
-
-
Transfers out
(658,298)
-
(2,000,000)
-
TOTAL OTHER FINANCING
SOURCES (USES)
(638,298)
2,307,222
(266,655)
3,055,000
NET CHANGE IN FUND BALANCES
(2,425,613)
(992,006)
(5,736,746)
(692,350)
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR AS RESTATED
17,342,932
35,312,905
(19,128,251)
116,186,300
FUND BALANCES (DEFICIT) - END OF YEAR
$ 14,917,319
$ 34,320,899
$ (24,864,997)
$ 115,493,950
See independent auditors' report and notes to basic financial statements.
-22-
Other
Total
Governmental
Governmental
Funds
Funds
_
$—
25,429,344
-
8,517,826
924,493
2,587,918
7,127,454
7,322,908
-
1,594,774
301,129
733,792
431,901
7,928,611
1,578,779
1,578,779
2,346,540
6,910,516
12,710,296
62,604,468
1,069,056 6,797,320
- 11,022,531
- 3,049,501
10, 894,879 12,901,064
- 3,313,082
- 7,782,513
- 3,750,000
- 6,976,853
3,364,228 4,394,843
1,987,745
- 1,584,965
355,000 6,037,770
35,588 10,318,720
15,718, 751 79, 916,907
(3,008,455) (17,312,439)
(166,785)
- 26,290,000
- (22,082,648)
- 26,290,000
- (23,235,000)
4,480,694 4,500,694
(1,842,396) (4,500,694)
2,638,298 7,095,567
(370,157) (10,216,872)
21,084,431 170,798,317
$ 20,714,274 $ 160,581,445
-23-
CITY OF LAKE ELSINORE, CALIFORNIA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE STATEMENT OF ACTIVITIES
For the year ended June 30, 2010
Net change in fund balances - total governmental funds $ (10,216,872)
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report capital outlays as an expenditure in the full amount as
current financial resources are used. However, in the Statement of Activities the
cost of these assets is allocated over the estimated useful life as depreciation
expense.
Capital outlay
$ 6,356,178
Depreciation expense
(5,293,688)
1,062,490
The issuance of long term debt provides current financial resources to governmental
funds, while the repayment of the principal of long term -debt consumes the current
financial resources of governmental funds. Neither transaction, however, has any
effect on net assets. These amounts are the net effect of these differences in the
treatment of long -term debt.
Long -term debt principal payments
$ 6,037,770
Principal amount added on note payable
(94,166)
Refunding bonds issued
(26,290,000)
Payment to refunding bond escrow agent
24,070,393
Issuance costs
1,584,965
Loans issued
(26,290,000)
Loan payments
23,235,000
Discount on bonds
166,785
2,420,747
Some expenses reported in the Statement of Activities do not require the use
of current financial resources and are not reported as governmental fund
expenditures.
Amortization bond issuance costs
$ (191,734)
Amortization bond premum
21,922
Amortization of deferred amount on refunding
(43,895)
Amortization of bond discount
(2,665)
Interest and fiscal charges
119,452
Insurance premium deposit payable
19,348
Other post - employment benefit obligation
(1,038,389)
Compensated absences
(36,449)
(1,152,410)
Some revenues reported in the Statement of Activities are not considered to be
available to finance current expenditures and therefore are not reported as
revenues in governmental funds:
Investment income
$ (457,976)
Taxes and intergovernmental revenue
1,494,988
Licenses, permits, fees and other revenue
(325,772)
711,240
Change in net assets of governmental activities
$ (7,174,805)
See independent auditors' report and notes to basic financial statements.
11PZ1E
CITY OF LAKE ELSINORE, CALIFORNIA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
June 30, 2010
ASSETS
Cash and investments
Cash and investments with fiscal agents
Accounts receivable
Interest receivable
Due from other governments
TOTAL ASSETS
LIABILITIES
Accounts payable
Deposits and other liabilities
Due to other governments
Due to bondholders
TOTAL LIABILITIES
$ 3,291,362
37,697,610
24,598
99,095
1.459262
$ 42,571,927
$ 20,860
2,983,240
4,685,615
34,882,212
$ 42,571,927
See independent auditors' report and notes to basic financial statements
-25-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES:
A. Description of the Reporting Entity:
The City of Lake Elsinore (City) was incorporated April 23, 1888, under the general laws of the
State of California. The City operates under a Council- Member form of government and
provides the following services: public safety (law enforcement), highways and streets,
cultural recreation, public improvements, planning and zoning, and general administrative
services.
The financial statements of the City of Lake Elsinore include the financial activities of the City,
the Lake Elsinore Redevelopment Agency (Agency), the Lake Elsinore Public Financing
Authority (Authority) and the Lake Elsinore Recreation Authority (Recreation Authority). In
accordance with GASB Statement No. 14, the basic criteria for including an agency, institution,
authority or other organization in a governmental unit's financial reporting entity is financial
accountability. Financial accountability includes, but is not limited to 1) selection of the
governing body, 2) imposition of will, 3) ability to provide a financial benefit to or impose
financial burden on and 4) fiscal dependency.
There may, however, be factors other than financial accountability that are so significant that
exclusion of a particular agency from a reporting entity's financial statements would be
misleading. These other factors include scope of public service and special financing
relationships.
Based upon the application of these criteria, an agency, institution or authority, may be included
as a component unit in the primary government's financial statements. Blended component
units, although legally separate entities, are, in substance, part of the government's operations
and so data from these units are combined with date of the primary government. A discretely
presented component unit, on the other hand, is reported in a separate column in the combined
financial statements to emphasize it is legally separate from the government. There are no
discretely presented component units in these financial statements. Each blended component
unit presented has a June 30, 2010 year end. The following is a brief review of each
component unit included in the primary government's reporting entity.
See independent auditors' report.
-26-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
A. Description of the Reporting Entity (Continued):
The Lake Elsinore Redevelopment Agency
The Agency was established July 15, 1980, pursuant to the State of California Health and
Safety Code, Section 33000 entitled "Community Redevelopment Law ". Its purpose is to
eliminate blighted areas by encouraging the development of residential, commercial, industrial,
recreational and public facilities. The City Council also acts as the governing body of the
Agency. The Agency's activities are blended with those of the City in these financial
statements and reported as a special revenue fund, a debt service fund, a capital projects fund
and an agency fund.
The Lake Elsinore Public Financing Authority
The Authority is a joint exercise of powers between the City and Agency created by a joint
powers agreement dated July 25, 1989. The purpose of the Authority is to provide, through the
issuance of revenue bonds, a financing pool to fund capital improvement projects. These
revenue bonds are to be repaid solely from the revenues of certain public obligations. The
Authority does not have taxing power. The City Council also acts as the governing body of the
Authority. The Authority's activities are blended with those of the City in these financial
statements and are reported as a debt service fund.
The Lake Elsinore Recreation Authority
The Recreation Authority is a joint exercise of powers between the City and Agency created by
a joint powers agreement dated December 1, 1996. The purpose of the Recreation Authority is
to provide, through the issuance of revenue bonds, a financing pool to fund capital
improvement projects. These revenue bonds are to be repaid solely from the revenues of
certain public obligations. The Recreation Authority does not have taxing power. The City
Council also acts as the governing body of the Recreation Authority. The Recreation
Authority's activities are blended with those of the City in these financial statements and are
reported as a debt service fund.
A component unit financial statement for each component unit previously described may be
obtained at 130 South Main Street, Lake Elsinore, California 92530.
See independent auditors' report.
-27-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
B. Government -Wide and Fund Financial Statements:
The government -wide financial statements (i.e., the statement of net assets and the statement of
changes in net assets) report information about the reporting government as a whole, except for
its fiduciary activities. 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. Likewise, the primary government
(including its blended component units) is reported separately from discretely presented
component units for which the primary government is financially accountable. The City has no
business -type activities or discretely presented component units. For the most part, the effect
of interfund activity has been removed from the government -wide financial statements. Direct
payments have not been eliminated from the functional categories. Internal expenses and
internal payments have been eliminated.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment are 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.
The underlying accounting system of the City is organized and operated on the basis of
separate funds, each of which is considered to be a separate accounting entity. The operations
of each fund are accounted for with a separate set of self - balancing accounts that comprise its
assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate.
Governmental resources are allocated to and accounted for in individual funds based upon the
purposes for which they are to be spent and the means by which spending activities are
controlled.
Separate Financial Statements for the government's governmental and fiduciary funds are
presented after the Government -wide Financial Statements. These statements display
information about major funds individually and nonmajor funds in the aggregate for
governmental funds. Fiduciary statements, even though excluded from the government -wide
financial statements includes financial information that primarily represent assets held by the
City in a custodial capacity for other individuals or organizations.
See independent auditors' report.
-28-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
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. Under the economic resources measurement focus, all
assets and liabilities (whether current or noncurrent) associated with their activity are included
on their balance sheets. Operating statements present increases (revenues) and decreases
(expenses) in total net assets. Under the accrual basis of accounting, revenues are recorded
when earned and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Proprietary funds distinguish operating revenues and expenses from
nonoperating 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. Nonexchange transactions, in which the City gives (or receives) value without
directly receiving (or giving) equal value in exchange include grants, entitlements, and
donations. Revenue from grants, entitlements, and donations is recognized in the fiscal year in
which all the eligibility requirements have been satisfied.
When both restricted and unrestricted resources are available for use, it is the government's
policy to use restricted resources first, then unrestricted resources as they are needed.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Under the current financial
resources measurement focus, only current assets and current liabilities are generally included
on their balance sheets. The reported fund balance (net current assets) is considered to be a
measure of "available spendable resources ". Governmental fund operating statements present
increases (revenues and other financing sources) and decreases (expenditures and other
financing uses) in net current assets. Accordingly, they are said to present a summary of
sources and uses of "available spendable resources" during a period. Noncurrent portions of
long -term receivables due to governmental funds are reported on their balance sheets in spite of
their spending measurement focus. However, special reporting treatments are used to indicate
that they should not be considered "available spendable resources" since they do not represent
net current assets. Recognition of governmental fund type revenue represented by noncurrent
receivables is deferred until they become current receivables. Noncurrent portions of other
long -term receivables are offset by fund balance reserve accounts.
See independent auditors' report.
-29-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued):
Under the modified accrual basis of accounting, 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, except for principal and interest on general long -term
liabilities and compensated absences which are recognized as expenditures to the extent they
have matured. General capital asset acquisitions are reported as expenditures in governmental
funds. Proceeds of general long -term liabilities are reported as other financing sources.
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 cash is received
by the government.
All government -wide activities of the City follow FASB Statements and Interpretations issued
on or before November 30, 1989, Accounting Principles Board Opinions and Accounting
Research Bulletins, unless those pronouncements conflict with GASB pronouncements.
D. Fund Classifications:
The funds designated as major funds are determined by a mathematical calculation consistent
with GASB Statement No. 34. The City reports the following major governmental funds:
The General Fund is used to account for all financial resources of the City, except for those
required to be accounted for in another fund.
The Redevelopment Agency Special Revenue Fund is used to account for 20% set -aside for
low and moderate income projects. Expenditures for this fund are restricted to low and
moderate income projects.
The Redevelopment Agency Debt Service Fund is used to account for the accumulation of
resources for, and the payment of, long -term debt principal, interest and related costs within the
Rancho Laguna I, Rancho Laguna II and Rancho Laguna III project areas.
See independent auditors' report.
SWE
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
D. Fund Classifications (Continued):
Major Governmental Funds (Continued):
The Public Financing Authority Debt Service Fund is used to account for the accumulation of
resources for, and the repayment of, long -term debt principal, interest and related costs of the
Authority.
Additionally, the City reports the following fund types:
The Special Revenue Funds are used to account for the proceeds of specific revenue sources
that are restricted by law or City Council resolution to expenditure for specific purposes.
The Debt Service Fund is used to account for debt service transactions including revenue
collections and payments of principal and interest on long -term obligations of the component
unit.
The Capital Projects Funds are used to account for financial resources to be used for the
acquisition or construction of redevelopment projects and administrative expenses.
The Agency Funds are used to account for money received by the City as an agent for
individuals, other governments and other entities.
E. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement
of Net Assets:
The "total fund balances" of the City's governmental funds $160,581,445 differs from "net
assets" of governmental activities $160,094,317 reported in the Statement of Net Assets. This
difference primarily results from the long -term economic focus of the statement of net assets
versus the current financial resources focus of the governmental fund balance sheets.
Loans Receivable
Loans receivable from the Agency to the Authority are not reported in the Statement of Net
Assets. All interfund assets are reported in the funds.
Loan receivable from LERDA $ (54.545.000)
See independent auditors' report.
-31-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
E. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement
of Net Assets (Continued):
Capital Assets
Capital assets are recorded as expenditures in the full amount as current financial resources are
used in the governmental funds. However, the Statement of Net Assets allocates these capital
assets as financial resources over their estimated useful life.
Capital assets, net of depreciation
Bond Issuance Costs
156.708.348
Bond issuance costs are due and payable in the current period and accordingly reported as an
expenditure for the full amount when paid in the governmental funds. However, the Statement
of Net Assets reports an asset for the unamortized portion of these costs over the life of the
bond.
Bond issuance costs $ 4,597,870
Amortization (191,734)
Unamortized bond issuance costs 4.406.136
Long -Term Debt Transactions
Long -term liabilities and related items such as bond premiums, deferred amounts on refunding,
and interest payable on these liabilities applicable to the City's governmental activities are not
due and payable in the current period and accordingly are not reported as fund liabilities. All
liabilities and related items (both current and long -term) are reported in the Statement of Net
Assets. Balances at the end of this fiscal year were:
Interest payable on long -term liabilities $ (1,683,952)
Long -term liabilities (128,773,467)
Deferred amounts on refunding 1,118,769
Bond premium (219,221)
Bond discount 164,120
Long -term debt transactions (129.393.751)
See independent auditors' report.
-32-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
E. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement
of Net Assets (Continued):
Long -Term Assets
Receivables applicable to the City's governmental activities which are not available to pay for
current period expenditures, and are deferred in the fund financial statements. All receivables
(both current and long -term) are reported in the Statement of Net Assets. Balances at the end of
this fiscal year were:
Interest receivable $ 1,243,236
Due from other governments 1,732,406
Long -term receivables $ 2.975.642
Interest and Other Receivables
Interest on interfund loans and other receivables reported in the special revenue funds are not
available soon enough to pay for current- period expenditures, and therefore they are reported as
deferred revenue in the funds.
Interest on interfund loans and other receivables 19,361,317
Reclassification and Eliminations
Interfund balances must generally be eliminated in the government -wide statements, except for
net residual amounts due between governmental activities. Amounts involving fiduciary funds
should be reported as external transactions. Any allocations must reduce the expenses of the
function from which the expenses are being allocated, so that expenses are reported only once,
in the function in which they are allocated.
See independent auditors' report.
-33 -
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
F. Explanation of Differences between the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balances and the Statement of Activities:
The "net change in fund balances" for governmental funds $(10,216,872) differs from the
"change in net assets" for governmental activities $(7,174,805) reported in the Statement of
Activities. The differences arise primarily from the long -term economic focus of the statement
of activities versus the current financial resources focus of the governmental funds. The effect
of the differences is illustrated below.
Depreciation of Capital Assets
Capital assets are reported as expenditures in full in the year of acquisition as current financial
resources are used in governmental funds. However the costs of these capital assets are
allocated over their estimated useful life in the Statement of Activities through depreciation.
Donated assets and disposal of assets are reported only in the Statement of Activities.
Capital outlay $ 6,356,178
Depreciation expense (5,293,688)
1.062.490
Long -Term Debt Transactions
Some revenues and expenditures reported in the Statement of Revenues, Expenditures and
Changes in Fund Balances are included as an addition or deletion of long -term liabilities in the
Statement of Net Assets.
Long -term debt principal payments,
including interfund loans
Refunding bonds issued
Principal added on note payable
Payment to refunding bond escrow agent
Issuance costs
Loans issued
Loan payments
Discount on bonds
Long -term debt transactions
See independent auditors' report.
-34-
$ 6,037,770
(26,290,000)
(94,166)
24,070,393
1,584,965
(26,290,000)
23,235,000
166,785
$ 2,420.747
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
F. Explanation of Differences between the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balances and the Statement of Activities (Continued):
Bond Issuance Costs
Bond issuance costs are due and payable in the current period and accordingly reported as an
expenditure for the full amount when paid in the governmental funds. However, the Statement
of Activities reports an expense for the unamortized portion of these costs over the life of the
bond.
Amortization of bond issuance costs
Bond Premium/Discount
(191,734)
Bond premiums /discounts are reported as revenues /expenditures for the full amount when
bonds are issued in the governmental funds. However, the Statement of Activities reports an
increase /decrease in expense for the unamortized portion of these costs over the life of the
bond.
Amortization of bond premium $ 21,922
Amortization of bond discount (2,665)
19,257
Interest on Long -Term Debt
Interest payable on long -term debt does not require the use of current financial resources and is
not reported as governmental fund expenditures. However, these expenses are reported in the
Statement of Activities.
Interest and fiscal charges
Deferred Amount
$ 119.452
In the governmental funds, proceeds from refunding bonds and related payment to refund bond
escrow agent are reported in the full amount in the year of the refunding. For the Statement of
Activities any gain or loss is deferred and amortized over the shorter period over which
principal is to be paid on the refunded bonds or issued bonds.
Amortization of deferred amount on refunding (43, —
See independent auditors' report.
-35-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
F. Explanation of Differences between the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balances and the Statement of Activities (Continued):
Other Expenses
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and are not reported as governmental fund expenditures.
Insurance premium deposit payable $ 19,348
Other post - employment benefit obligation (1,038,389)
Compensated absences (36,449)
(1,055,490)
Interest on Long -Term Receivables
Interest on the discount of long -term receivables from the Agency to the Authority is not
reported on the Statement of Activities. However, these revenues are reported as governmental
fund revenues.
Investment income (274,241)
Interest on Investments in Local Obligations
The net change in interest receivable on investments in local obligations, which is not available
to pay for current expenditures, is not reported in the Fund Financial Statements.
Interest on investments in local obligations (183, —
Other Revenues
Some revenues reported in the Statement of Activities are not considered to be available to
finance current expenditures, and therefore are not reported as revenues in the governmental
funds.
Taxes, intergovernmental revenue and other revenue 1,169,216
See independent auditors' report.
-36-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
F. Explanation of Differences between the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balances and the Statement of Activities (Continued):
Reclassification and Eliminations
Interfund balances must generally be eliminated in the government -wide financial statements,
except for net residual amounts due between governmental activities. Amounts involving
fiduciary funds should be reported as external transactions. Any allocations must reduce the
expenses of the function from which the expenses are being allocated, so that expenses are
reported only once, in the function in which they are allocated.
G Encumbrances:
Encumbrances represent commitments related to unperformed contracts for goods or services.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for
the expenditure of resources are recorded to reserve that portion of the applicable appropriation,
is employed as an extension of formal budgetary integration in the General Fund, Special
Revenue Funds and Capital Projects Funds. Unexpended and unencumbered appropriations of
the governmental funds automatically lapse at the end of the fiscal year. Encumbrances
outstanding at year end are reported as a reservation of fund balances and do not constitute
expenditures or liabilities because the commitments are reappropriated the following year.
H. Investments:
Investments are reported at fair value, except for the investment contract and investments in
local obligations, which are reported at cost, because the investments are not transferable and
the fair values are not affected by changes in interest rates. Investment income includes interest
earnings, changes in fair value, and any gains or losses related to the liquidation or sale of the
investment.
I. Employee Compensated Absences:
In accordance with GASB Statement No. 16, a liability is recorded for unused vacation, sick,
holiday benefits and compensatory leave balances since the employees' entitlement to these
balances are attributable to services already rendered and it is probable that virtually all of these
balances will be liquidated by either paid time off or payment upon termination or retirement.
The amount recorded in accordance with GASB Statement No. 16 at June 30, 2010 was
$637,866.
See independent auditors' report.
-37-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
J. Interfund Activity:
Activity between funds that are representative of lendingiborrowing 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).
Noncurrent portions of long -term interfund loan receivables are reported as advances and such
amounts are offset equally by a fund balance reserve account which indicates that they do not
constitute expendable available financial resources and therefore are not available for
appropriation.
K. Risk Management:
The City's workers' compensation losses are covered by a policy with the California State
Compensation Board. The City's liability losses are covered under their participation in the
California Joint Powers Insurance Authority (JPIA).
L. Capital Assets:
Capital assets, which include land, structures, equipment, and infrastructure assets, are reported
in the government -wide financial statements. Capital assets are recorded at cost where
historical records are available and at an estimated historical cost where no historical records
exist. Assets purchased in excess of $5,000 are capitalized if they have an expected useful life
of 2 years or more. Infrastructure is capitalized if cost is in excess of $50,000 and it has an
expected useful life of 2 years or more. Capital assets acquired through lease obligations are
valued at the present value of future lease payments at the date acquired. Donated capital
assets are valued at their estimated fair market value at the date of donation. The cost of
normal maintenance and repairs that do not add to the value of the asset's lives are not
capitalized.
See independent auditors' report.
Bill
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
L. Capital Assets (Continued):
Capital assets used in operations are depreciated over their estimated useful lives using the
straight -line method in the government -wide financial statements. Depreciation is charged as
an expense against operations and accumulated depreciation is reported on the Statement of Net
Assets.
The range of lives used for depreciation purposes for each capital asset class is as follows:
Building and structures
40 years
Improvements other than buildings
25 years
Machinery and equipment
5 - 8 years
Furniture and fixtures
5 years
Automotive equipment
5 years
Infrastructure
35 -100 years
M. Property Tax Revenue:
Property tax in California is levied according to Article 13 -A of the California Constitution. The
County of Riverside, California (the County) is permitted by State law (Proposition 13) to levy
taxes at 1% of full market value (at time of purchase) as determined by the County Assessor.
Property taxes are levied by the County and shared with all other political jurisdictions within
the County. These political jurisdictions and the County may levy an additional property tax
override only after two - thirds approval of the jurisdictions' voters.
The County bills and collects the property taxes and remits them to the City in installments
during the year. City property tax revenues are recognized when levied provided that the
revenue is collected during the year or within 60 days of year -end. Property taxes attach as an
enforceable lien on property as of January 1. Taxes are levied on July 1, and are payable in two
installments on November 1 and February 1. Such taxes become delinquent on December 10
and April 10, respectively.
See independent auditors' report.
-39-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):
N. Use of Estimates:
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenditures /expenses during the reporting period. Actual results could differ
from those estimates.
See independent auditors' report.
.1
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. CASH AND INVESTMENTS:
Cash and Investments
Cash and investments at June 30, 2010 are classified in the accompanying financial statements as
follows:
Unrestricted assets:
Cash and investments
Restricted assets:
Cash and investments with fiscal agents
Total Cash and Investments
Government-
Fiduciary
Wide
Fund
Statement of
Statement of
Net Assets
Net Assets Total
$ 62,700,797
$ 3,291,362 $ 65,992,159
63,511,875 37,697,610 101,209,485
126.212,672 40,988,972 167,201,644
Cash and investments at June 30, 2010 consisted of the following:
Cash on hand $ 1,300
Deposits with financial institutions 1,019,271
Investments 166,181,073
Total Cash and Investments $ 167,201,644
Investments Authorized by the California Government Code and the City's Investment
Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code (or the City's investment policy, where more restrictive). The table also
identifies certain provisions of the California Government Code (or the City's investment policy,
where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
This table does not address investments of debt proceeds held by bond trustee that are governed by
the provisions of debt agreements of the City, rather than the general provisions of the California
Government Code or the City's investment policy.
See independent auditors' report.
-41-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. CASH AND INVESTMENTS (CONTINUED):
Investments Authorized by the California Government Code and the City's Investment
Policy (Continued)
Authorized Investment Type
United States Treasury Obligations
United States Government Sponsored
Enterprise Securities
Banker's Acceptances
Time Certificate of Deposits
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium -Term Corporate Notes
Local Agency Investment Fund (LAIF)
N/A - Not Applicable
Maximum
Maturity
5 years
Maximum
Percentage
of Portfolio*
None
Maximum
Investment
in One Issuer
None
5 years
None
40%
180 days
40%
10%
5 years
25%
None
270 days
15%
10%
5 years
30%
None
1 year
None
None
92 days
2%
None
5 years
30%
None
N/A
None $
40,000,000
* - Excluding amounts held by bond trustee that are not subject to California Government Code
restrictions.
Investments Authorized by Debt Agreements
Investments of debt proceeds held by 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 authorized for funds held by bond trustee include, United States
Treasury Obligations, United States Government Sponsored Enterprise Securities, Guaranteed
Investment Contracts, Commercial Paper, Local Agency Bonds, Banker's Acceptance and Money
Market Mutual Funds. There were no limitations on the maximum amount can be invested in one
issuer, maximum percentage allowed or the maximum maturity of an investment, except for the
maturity of Commercial Paper which is limited to 92 days and of Banker's Acceptances which are
limited to one year.
See independent auditors' report.
-42-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. One of the ways that the City manages its
exposure to interest rate risk is by purchasing a combination of shorter term and longer term
investments and by timing cash flows from maturities so that a portion of the portfolio is maturing
or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity
needed for operations.
Information about the sensitivity of the fair values of the City's investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City's investments by maturity:
Investment Type
Local Agency Investment Fund
Local Obligation Bonds
Corporate Notes
United States Government Sponsored
Enterprise Securities
United States Treasury Notes
Mutual Funds
Remaining Maturity (in Months)
12 Months 13-24 25-60 More Than
or Less Months Months 60 Months
$ 53,362,935 $ - $ - $ -
2,114,591 2,325,676
- 1,051,860
47,404,067
8,686,172 38,316,558
3,217,970 -
7,027,634 -
37,023 2,636,587
Total
$ 53,362,935
51,442,997
4,269,830
7,027,634
2,673,610
47,404,067
102.881.593 3.377.536 18.968.799 40.953.145 166.181.073
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where
applicable) the California Government Code, the City's investment policy, or debt agreements, and
the actual rating, by Standard and Poor's as of year end for each investment type.
See independent auditors' report.
-43-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. CASH AND INVESTMENTS (CONTINUED):
Disclosures Relating to Credit Risk (Continued)
The City's investment in local obligation bonds are secured by special assessment taxes on
property owned by the Community Facilities Districts or Special Assessment Districts. Due to the
decline in property values and general economic conditions, there has been an increase in
delinquent special assessment collections, resulting in foreclosures on property secured by the
special assessments. The City may not be able to recover its investment in these local obligations
bonds if collections of special assessments decline and foreclosure proceeds are not adequate to
cover the investment balances.
Total 166.181.073 $ 54.431.701 $ 4.269.830 104.805.932 2.67 3.610
N/A - Not Applicable
See independent auditors' report.
Total
Minimum
Not
as of
Legal
Required to
Investment Type
June 30, 2010
Rating
AAA AA Unrated be Rated
Local Agency
Investment Fund $
53,362,935
N/A
$ - $ - $ 53,362,935 $ -
Local Obligation Bonds
51,442,997
N/A
- - 51,442,997 -
Corporate Notes
4,269,830
AA
- 4,269,830 - -
United States
Government Sponsored
Enterprise Securities
7,027,634
N/A
7,027,634 - - -
United States
Treasury Notes
2,673,610
N/A
- - - 2,673,610
Mutual Funds
47,404,067
A
47,404,067
Total 166.181.073 $ 54.431.701 $ 4.269.830 104.805.932 2.67 3.610
N/A - Not Applicable
See independent auditors' report.
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. CASH AND INVESTMENTS (CONTINUED):
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any
one issuer beyond that stipulated by the California Government Code. Investments in any one
issuer that represent 5% or more of total City's investments are as follows:
Issuer Investment Type
Community Facilities District
88 -3 West Lake Elsinore
Community Facilities District
98 -1 Bonds
Custodial Credit Risk
Local Agency Bond
Local Agency Bond
Reported
Amount
—
$ 21,485,000
17,605,000
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 its 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 (e.g., broker - dealer) to a
transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party.
The California Government Code and the City's investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits or investments,
other than the following provision for deposits: The California Government Code requires that a
financial institution secure deposits made by state or local governmental units by pledging
securities in an undivided collateral pool held by a depository regulated under state law (unless so
waived by the governmental unit). The market value of the pledged securities in the collateral pool
must equal at least 110% of the total amount deposited by the public agencies. California law also
allows financial institutions to secure City deposits by pledging first trust deed mortgage notes
having a value of 150% of the secured public deposits. At June 30, 2010, the City deposits (bank
balances) were insured by the Federal Depository Insurance Corporation up to $250,000 and the
remaining balances were collateralized under California Law.
See independent auditors' report.
-45-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
2. CASH AND INVESTMENTS (CONTINUED):
Investment 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. The fair value of the City's investment in this pool is reported in the accompanying
financial statements at amounts based upon the City's pro -rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis.
Cash and Investment by Entity:
Cash and investments held by entity at June 30, 2010 are as follows:
Deposits at carrying amount (1)
Petty cash and change drawer
Local Agency Investment Fund
Local Obligation Bonds
Corporate Notes
United States Government
Sponsored Enterprise Securities
United States Treasury Notes
Mutual Funds
Total Cash and Investments
City of
Public
Lake
Redevelopment
Financing
Recreation
Elsinore
Agency y
Authority
Authority
Total
$ 617,457
$ 327,283
$ 74,531
$ -
$ 1,019,271
1,300
-
-
-
1,300
17,548,427
35,491,347
323,161
-
53,362,935
-
-
51,442,997
-
51,442,997
4,269,830
-
-
-
4,269,830
7,027,634
-
-
-
7,027,634
2,673,610
-
-
-
2,673,610
32,124,211
9,274,985
6,001,806
3,065
47,404,067
64,262,469
45,093,615
57,842,495
S 3,065
$167,201,644
(1) Net of deposits in transit and outstanding warrants.
See independent auditors' report.
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
3. CAPITAL ASSETS:
A summary of changes in the Governmental Activities capital assets at June 30, 2010 is as follows:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets,
not being depreciated
Capital assets, being depreciated:
Building and structures
Improvements other than buildings
Machinery and equipment
Furniture and fixtures
Automotive equipment
Infrastructure
Total capital assets
being depreciated
Less accumulated depreciation for:
Building and structures
Improvements other than buildings
Machinery and equipment
Furniture and fixtures
Automotive equipment
Infrastructure
Total accumulated depreciation
Total capital assets
being depreciated, net
Total Governmental Activities
capital assets, net
Balance at Balance at
June 30, 2009 Additions Deletions June 30, 2010
$ 5,402,814 $ - $ (50,000) $ 5,352,814
10,341,987 4,856,554 (886,693) 14,311,848
15,744,801 4,856,554 (936,693) 19,664,662
22,916,333
.197,309
- 23,113,642
8,102,805
87,625
- 8,190,430
3,149,567
191,935
- 3,341,502
593,616
26,198
- 619,814
1,992,821
9,182
- 2,002,003
172,942,527
1,924,068
- 174,866,595
(69,796,612)
(5,293,688)
209,697,669
2,436,317
- 212,133,986
(7,831,809)
(493,438)
- (8,325,247)
(4,109,719)
(248,282)
- (4,358,001)
(2,497,011)
(107,302)
- (2,604,313)
(493,974)
(37,390)
- (531,364)
(1,238,333)
(191,196)
- (1,429,529)
(53,625,766)
(4,216,080)
- (57,841,846)
(69,796,612)
(5,293,688)
- (75,090,300)
139,901,057 (2,857,371) - 137,043,686
155.645.858 1,999.183 (936.693) 156.708348
Depreciation expense was charged to functions /programs in the Statement of Activities as follows:
Governmental Activities:
General government $ 2,399,916
Public services 1,911,135
Community services 982,637
Total depreciation expense $ 5,293,688
See independent auditors' report.
-47-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
4. LAND HELD FOR RESALE:
The Agency has acquired land as part of its primary purpose to develop unimproved properties.
The land is being carried in the Redevelopment Agency Special Revenue Fund and Other
Governmental Funds (the Redevelopment Agency Capital Projects Fund) at the lower of cost or
estimated net realizable value. At June 30, 2010, the balance of land held for resale totaled
$8,803,167, with this amount offset by a reservation of fund balance in the Governmental Fund
Balance Sheet.
5. LOANS RECEIVABLE:
The Authority has entered into loan agreements with the Agency whereby the Authority loaned the
proceeds of the 1999 Series A Tax Allocation Revenue Bonds and the 2010 Series A and B Tax
Allocation Revenue Bonds issued by the Authority to the Agency to retire debt and provide funds
for certain public improvements in Agency project areas.
The following table represents the balance of net proceeds loaned to the Agency at June 30, 2010:
Tax Allocation
Revenue Bonds
1999 Series A Issue
2010 Series A Issue
2010 Series B Issue
Total
Principal
$ 28,255,000
15,435,000
10,855,000
$ 54,545,000
Loans
Receivable
Balance
$ 28,255,000
15,435,000
10,855,000
54,545,000
These loans are recorded as a receivable offset by a reservation of fund balance in the Authority's
Debt Service Fund on the Governmental Fund Balance Sheet.
Interfund balances must generally be eliminated in the government -wide statements. Thus this
loan receivable does not appear on the Statement of Net Assets (see Note 1 B).
The principal and interest are payable in installment payments payable not less than three business
days prior to the due date on the bonds (see Note 6).
See independent auditors' report.
-48-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES:
Date of Years of Rate of Amount
Issue Maturity Interest Authorized
Local Agency
Revenue Bonds:
1996 Series E
1999 Series G
2003 Series H
2008 Series A
2008 Series B
Tax Allocation
Revenue Bonds:
1999 Series A
2010 Series A
2010 Series B
Revenue Refunding
Bonds:
2000 Series A
Developer Agreements:
Wal -Mart Stores, Inc.
Oak Grove Equities
Outlet Center
Loans Payable:
EVMWD Amber Ridge
Capital Lease Obligations:
Vehicles and equipment
3/96
1997 -2026
5.25%
- 7.50%
$ 1,750,000
2/99
2000 -2015
5.00%
- 5.80%
4,035,000
2/03
2003 -2033
2.75%
- 6.375%
31,570,000
1/08
2008 -2020
3.5%-4.30%
7.00%
22,295,000
3/08
2008 -2038
4.5% -
6.875%
3,265,000
2/99
2000 -2030
5.00% - 5.50%
33,450,000
2/10
2010 -2033
2.00% - 5.25%
15,435,000
5110
2010 -2025
2.00% - 4.75%
10,855,000
7/00
2005 -2032
Variable
15,660,000
3/93
1995 -2014
7.00%
2,200,000
3/93
1995 -2014
7.00%
1,800,000
12/89
1996 -2015
N/A
2,140,000
2/95
4/05
1999 -2014 2.70% - 6.00%
2005 -2010
See independent auditors' report.
-49-
7.75%
867,574
129,366
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
Add (less) deferred amounts:
Bond premium
Outstanding
-
(21,922)
Outstanding
Due
On refunding
June 30,
(835,393)
43,895
June 30,
Within
Discount on bonds
2009
Additions
Retirements
2010
One Year
Local Agency Revenue Bonds:
109,173,872
25,287,822
(27,255,362)
107,206,332
4,255,000
1996 Series E
$ 1,430,000
$ -
$ (40,000) $
1,390,000
$ 45,000
1999 Series G
1,910,000
-
(230,000)
1,680,000
240,000
2003 Series H
28,720,000
-
(670,000)
28,050,000
760,000
2008 Series A
21,150,000
-
(1,810,000)
19,340,000
1,255,000
2008 Series B
3,265,000
-
-
3,265,000
-
Tax Allocation Revenue Bonds:
633,101
-
(109,513)
523,588
109,513
1995 Series A
10,445,000
-
(10,445,000)
-
-
1999 Series A
28,895,000
-
(640,000)
28,255,000
760,000
1999 Series B
80,000
-
(80,000)
-
-
1999 Series C
13,365,000
-
(13,365,000)
-
-
2010 Series A
-
15,435,000
-
15,435,000
680,000
2010 Series B
537,869
10,855,000
(19,348)
10,855,000
515,000
Other post - employment
109,260,000
26,290,000
(27,280,000)
108,270,000
4,255,000
Add (less) deferred amounts:
Bond premium
241,143
-
(21,922)
219,221
On refunding
(327,271)
(835,393)
43,895
(1,118,769)
-
Discount on bonds
-
(166,785)
2,665
(164,120)
109,173,872
25,287,822
(27,255,362)
107,206,332
4,255,000
Revenue Refunding Bonds:
2000 Series A
14,095,000
-
(355,000)
13,740,000
375,000
Developer Agreements:
Wal -Mart Stores, Inc.
607,214
-
(162,120)
445,094
162,120
Oak Grove Equities
2,200,726
94,166
-
2,294,892
-
Outlet Center
633,101
-
(109,513)
523,588
109,513
Loan Payable:
EVMWD Amber Ridge
307,542
-
(50,822)
256,720
51,543
Capital Lease Obligations:
Vehicles and equipment
20,316
-
(20,316)
-
-
Insurance premium deposit
payable
537,869
(19,348)
518,521
-
Other post - employment
benefit obligation (Note 17)
1,048,397
1,356,199
(317,810)
2,086,786
2,086,786
Compensated absences
601,417
36,449
-
637,866
63,787
129.225.454 26.774.636 (28.290.291) S 127.709.799 7.103.749
See independent auditors' report.
-50-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds:
In February 1990, the Public Financing Authority was authorized to issue $500,000,000 in
revenue bonds for the purpose of enabling the Public Financing Authority to acquire certain
qualified obligations (the Local Obligations) of the City or the Agency for whose benefit the
program has been designed, or of any other local agencies in the State of California, including
Community Facilities District and Special Assessment District (the Local Agencies). The
Bonds were issued to provide funds to finance the acquisition or construction of land,
buildings, equipment and other capital improvements. The Bonds will constitute special
obligations of the Public Financing Authority and will be issued in Series from time to time
pursuant to Supplemental Indentures. These bonds will be payable solely from the repayment
by Local Agencies of their obligations and any available surplus revenues.
1996 Series E
In March 1996, $1,750,000 principal amount of 1996 Local Agency Revenue Bonds, Series E,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $15,000 to $135,000 from October 1, 1997 through October 1, 2026; interest at
5.25% to 7.50 %. The bonds maturing on or before October 1, 2005, are not subject to optional
redemption prior to maturity. The bonds maturing on or after October 1, 2006 are subject to
redemption under certain circumstances, at the option of the Authority, from funds deposited in
the Series E redemption account on or after October 1, 2005, at a specified redemption price
together with accrued interest. The Series E Bonds are also subject to special mandatory
redemption on various specified dates at specified redemption prices under certain
circumstances, as provided in the Bond Indenture Agreement. At June 30, 2010, the Authority
has a cash reserve balance for debt service of $149,877, which is sufficient to cover the Bond
Indenture Reserve Requirement of $149,877.
Future debt requirements for the 1996 Series E Local Agency Revenue Bonds are as follows:
Year Ending
June 30
2011
2012
2013
2014
2015
2016-2020
2021 -2025
2026 -2027
Totals
See independent auditors' report.
Principal
$ 45,000
45,000
50,000
55,000
60,000
355,000
520,000
260,000
1,390,000
-51-
Interest
$ 102,225
99,075
95,625
91,688
87,375
363,562
200,625
19,875
$ 1.060.05.0
Total
$ 147,225
144,075
145,625
146,688
147,375
718,562
720,625
279,875
2.450.050
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
1999 Series G
In February 1999, $4,035,000 principal amount of 1999 Local Agency Revenue Bonds,
Series Q was issued in accordance with the indenture described above. The bonds are due in
annual installments of $165,000 to $370,000 from September 2, 2000 through
September 2, 2015; interest at 5.00% to 5.80 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 2, 2008 at specified redemption prices.
At June 30, 2010, the Agency has a cash reserve balance for debt service of $168,002, which is
sufficient to cover the Bond Indenture Reserve Requirement of $168,000.
Future debt requirements for the 1999 Series G Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2011
2012
2013
2014
2015
2016
Totals
See independent auditors' report.
Principal Interest Total
$ 240,000
255,000
275,000
285,000
305,000
320,000
$ 90,480
76,125
60,755
44,515
27,405
9,280
$ 330,480
331,125
335,755
329,515
332,405
329,280
1.680,000 308,560 $ 1,988.560
-52-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2003 Series H
In February 2003, $31,570,000 principal amount of 2003 Local Agency Revenue Bonds,
Series H, was issued in accordance with the indenture described above. The bonds are due in
annual installments of $375,000 to $1,850,000 from October 1, 2003 through October 1, 2033;
interest at 2.75% to 6.375 %. The bonds are subject to mandatory redemption, without premium,
prior to their maturity dates commencing October 1, 2014 in the case of bonds maturing
October 1, 2015, October 1, 2016 in the case of bonds maturing October 1, 2020,
October 1, 2021 in the case of bonds maturing October 1, 2026, and October 1, 2027 in the case
of bonds maturing October 1, 2033, from Sinking Account payments under the indentures. The
bonds are subject to optional redemption prior to maturity in a manner determined by the
Authority on October 1, 2013, and on any date thereafter at a redemption price equal to the
principal amount thereof, plus accrued interest to the date of redemption, plus a specified
premium. At June 30, 2010, the Authority has a cash reserve balance for debt service of
$2,674,419, which is sufficient to cover the Bond Indenture Reserve Requirement of
$2,674,419.
Future debt requirements for the 2003 Series H Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2034
Totals
Principal Interest Total
$ 760,000
850,000
940,000
1,055,000
1,160,000
6,775,000
4,500,000
5,475,000
6,535,000
28.050.000
See independent auditors' report.
-53-
$ 1,668,156
1,628,856
1,583,519
1,531,737
1,472,144
6,267,469
4,407,650
3,018,538
877,678
22.455.747
$ 2,428,156
2,478,856
2,523,519
2,586,737
2,632,144
13,042,469
8,907,650
8,493,538
7,412,678
$ 50.505.747
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2008 Series A
In January 2008, $22,295,000 principal amount of 2008 Local Agency Revenue Bonds,
Series A, was issued in accordance with the indenture described above. The bonds were issued
to refund the 1997 Local Agency Revenue Bonds. The bonds are due in annual installments of
$940,000 to $2,520,000 from September 1, 2008 through September 1, 2020; interest at 3.5%
to 4.3 %. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2008 at specified redemption prices. At June 30, 2010, the Authority
has a cash reserve balance for debt service of $1,114,776, which is sufficient to cover the Bond
Indenture Reserve Requirement of $967,000.
Future debt requirements for the 2008 Series A Local Agency Revenue Bonds are as follows:
Year Ending
June 30,
2011
2012
2013
2014
2015
2016-2020
2021
Totals
See independent auditors' report.
Principal Interest Total
$ 1,255,000
1,340,000
1,425,000
1,515,000
1,620,000
9,765,000
2,420,000
$ 737,747
692,335
643,948
588,710
526,010
1,530,235
48,400
$ 1,992,747
2,032,335
2,068,948
2,103,710
2,146,010
11,295,235
2,468,400
$ 19.340.000 4.767.385 24.107.385
-54-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
A. Local Agency Revenue Bonds (Continued):
2008 Series B
In March 2008, $3,265,000 principal amount of 2008 Local Agency Revenue Bonds, Series B,
was issued in accordance with the indenture described above. The bonds are due in annual
installments of $5,000 to $285,000 from September 1, 2008 through September 1, 2038;
interest at 4.5% to 6.875 %. The bonds are subject to call and redemption prior to their stated
maturity commencing September 1, 2008 at specified redemption prices. At June 30, 2010, the
Authority has a cash reserve balance for debt service of $308,847, which is sufficient to cover
the Bond Indenture Reserve Requirement of $308,844.
Future debt requirements for the 2008 Series B Local Agency Revenue Bonds are as follows:
Year Ending
June 30
2011
2012
2013
2014
2015
2016-2020
2021 -2025
2026-2030
2031 -2035
2036-2039
Totals
See independent auditors' report.
Principal Interest
5,000
10,000
15,000
175,000
375,000
680,000
965,000
1,040,000
$ 3.265,000
-55-
$ 220,486
220,487
220,374
220,024
219,430
1,076,294
993,987
814,344
531,953
148,843
4.666.222
Total
$ 220,486
220,487
225,374
230,024
234,430
1,251,294
1,368,987
1,494,344
1,496,953
1,188,843
$ 7.931.222
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds:
1995 Series A
In December 1995, $13,345,000 principal amount of Tax Allocation Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The term bonds are due in
annual installments of $235,000 to $925,000 from September 1, 1999 through
September 1, 2025; interest at 4.30% to 5.80 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 1999, at specified redemption prices.
The 1995 Series A Tax Allocation Revenue Bonds were refunded by the 2010 Series B Tax
Allocation Revenue Bonds in April 2010.
1999 Series A
In February 1999, $33,450,000 principal amount of Tax Allocation Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The term bonds are due in
annual installments of $410,000 to $2,175,000 from September 1, 2000 through
September 1, 2030; interest at 5.00% to 5.50 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 2015, at specified redemption prices.
At June 30, 2010, the Agency has a cash reserve balance for debt service of $2,302,769, which
is sufficient to cover the Bond Indenture Reserve Requirement of $2,302,750.
Future debt requirements for the 1999 Series A Tax Allocation Revenue Bonds are as follows:
Year Ending
June 30,
2011
2012
2013
2014
2015
2019-2020
2021-2025
2026-2030
2031
Totals
See independent auditors' report.
Principal
$ 760,000
800,000
840,000
880,000
925,000
5,455,000
7,120,000
9,300,000
2,175,000
$ 28.255.000
-56-
Interest
$ 1,519,738
1,479,567
1,437,337
1,393,048
1,346,569
5,895,587
4,176,700
1,931,600
59,813
$ 19.239.959
Total
$ 2,279,738
2,279,567
2,277,337
2,273,048
2,271,569
11,350,587
11,296,700
11,231,600
2,234,813
47.494.959
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds (Continued):
1999 Series B
In February 1999, $580,000 principal amount of Tax Allocation Revenue Bonds, Series B, was
issued in accordance with the indenture described above. The term bonds are due in annual
installments of $40,000 to $80,000 from September 1, 2000 through September 1, 2009;
interest at 7.25 %. The bonds are subject to call and redemption prior to their stated maturity
commencing September 1, 2000, at specified redemption prices. The 1999 Series B bonds are
covered by the 1999 Series A bonds cash reserve balance for debt service. The final loan
payment was made in fiscal year 2009 -2010.
1999 Series C
In October 1999, $14,180,000 principal amount of Tax Allocation Revenue Bonds, Series C,
was issued in accordance with the indenture described above. The term bonds are due in
annual installments of $145,000 to $1,440,000 from October 1, 2004 through October 1, 2033;
interest at 6.70 %. The 1999 Series C Tax Allocation Revenue Bonds were refunded by the
2010 Series A Tax Allocation Revenue Bonds in February 2010.
See independent auditors' report.
-57-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds (Continued):
2010 Series A
In February 2010, $15,435,000 principal amount of Tax Allocation Revenue Bonds, Series A,
was issued in accordance with the indenture described above. The term bonds are due in
annual installments of $305,000 to $2,910,000 from September 1, 2010 through
September 1, 2033; interest at 2.00% to 5.25 %. The bonds are subject to call and redemption
prior to their stated maturity commencing September 1, 2024, at specified redemption prices.
At June 30, 2010, the Agency has a cash reserve balance for debt service of $1,471,930, which
is sufficient to cover the Bond Indenture Reserve Requirement of $1,471,914.
Future debt requirements for the 2010 Series A Tax Allocation Revenue Bonds are as follows:
Year Ending
June 30.
2011
2012
2013
2014
2015
2019-2020
2021-2025
2026-2030
2031 -2033
Totals
See independent auditors' report.
Principal Interest Total
$ 680,000
305,000
310,000
315,000
325,000
1,770,000
2,130,000
2,695,000
6,905,000
15.43 5.000
-58-
$ 749,389
686,781
679,081
669,707
660,106
3,148,081
2,775,347
2,179,669
777,131
$ 12.325.292
$ 1,429,389
991,781
989,081
984,707
985,106
4,918,081
4,905,347
4,874,669
7,682,131
$ 27.760.292
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
B. Tax Allocation Revenue Bonds (Continued):
2010 Series B
In May 2010, $10,855,000 principal amount of Tax Allocation Revenue Bonds, Series B, was
issued in accordance with the indenture described above. The term bonds are due in annual
installments of $515,000 to $895,000 from September 1, 2010 through September 1, 2025;
interest at 2.00% to 4.75 %. The bonds are subject to call and redemption prior to their stated
maturity commencing September 1, 2019, at specified redemption prices. At June 30, 2010, the
Agency has a cash reserve balance for debt service of $939,541, which is sufficient to cover the
Bond Indenture Reserve Requirement of $939,538.
Future debt requirements for the 2010 Series B Tax Allocation Revenue Bonds are as follows:
Year Ending
June 3 0,
2011
2012
2013
2014
2015
2019-2020
2021 -2025
2026
Totals
See independent auditors' report.
Principal Interest Total
$ 515,000
545,000
560,000
575,000
590,000
3,245,000
3,930,000
895,000
10.855.000
WE
$ 325,386
384,900
371,050
354,025
336,550
1,387,363
671,444
21,256
$ 3.851.974
$ 840,386
929,900
931,050
929,025
926,550
4,632,363
4,601,444
916,256
$ 14,706.974
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
C. Revenue Refunding Bonds:
2000 Series A
In July 2000, $15,660,000 principal amount of Revenue Refunding Bonds, Series A, was issued
in accordance with the indenture to advance refund 1997 Revenue Bonds, Series A, whose
proceeds were to provide funds to finance the Authority's lease of certain City recreation
facilities from the City for lease back to the City. The term bonds are due in annual
installments of $285,000 to $960,000 from February 1, 2005 through February 1, 2032; interest
is variable. The bonds are subject to call and redemption prior to their stated maturity
commencing February 1, 2002, at specified redemption prices.
Future debt requirements for the 2000 Series A Revenue Refunding Bonds are as follows:
Year Ending
June 3 0,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2032
Totals
Principal Interest * Total
$ 375,000
390,000
410,000
430,000
450,000
2,565,000
3,210,000
4,030,000
1,880,000
13.740.000
$ 27,480
26,730
25,950
25,130
24,270
107,040
78,930
43,700
5,680
$ 364.910
$ 402,480
416,730
435,950
455,130
474,270
2,672,040
3,288,930
4,073,700
1,885,680
$ 14.104.910
* Interest on the bonds is payable on the first of each month, so long as the bonds bear
interest at a variable interest rate, and after conversion to a fixed rate, interest will be
payable on February 1 and August 1 of each year. The amount of the payments are not yet
known due to the variable interest rate which is calculated weekly. For purposes of this
schedule, the interest rate at June 30, 2010 of 0.20% was used to calculate the future
interest payments.
See independent auditors' report.
srel e
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
D. Developer Agreements:
The Agency has entered into several developer agreements to attract new business to the City.
The following represents the Agency's significant commitments with certain developers:
Wal -Mart Stores, Inc.
On March 12, 1993, the Agency entered into a Disposition and Development Agreement with
Wal -Mart Stores, Inc. The Agency has agreed to purchase Wal -Mart property through the
payment of a $2,200,000 loan from Wal -Mart Stores, Inc. The $2,200,000 accrues interest at
7.00% per annum. Installment payments are to be made each year on January 30ffi for
approximately 20 years, continuing 19 years after the first installment date. Installment
payments are calculated to be (1) in the amount of 100% of the sales tax in excess of $200,000,
but not to exceed $200,000 and (2) 50% of the amount of any additional sales tax received in
excess of $400,000. Sales tax is not pledged for repayment. The obligation is a general
obligation of the Agency and tax increment is not specifically pledged. As of June 30, 2010,
the Agency owes $445,094 to Wal -Mart Stores, Inc., which has been included in the long -term
obligations.
Oak Grove Equities
On March 12, 1993, the Agency entered into an Owner Participation Agreement with Oak
Grove Equities. The Agency has agreed to reimburse the developer $1,800,000 for certain
public improvements that were installed at the Lake Elsinore City Center. The $1,800,000
accrues interest at 7.00% per annum. Installment payments are to be made each year on
January 30th for approximately 20 years, continuing 19 years after the first installment date.
Installment payments are calculated to be (1) in the amount of 100% of the sales tax in excess
of $200,000, but not to exceed $200,000 and (2) 50% of the amount of any additional sales tax
received in excess of $400,000. Sales tax is not pledged for repayment. The obligation is a
general obligation of the Agency and tax increment is not specifically pledged. As of
June 30, 2010, the Agency owes $2,294,892 to Oak Grove Equities which has been included in
the long -term obligations.
See independent auditors' report.
101M
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
D. Developer Agreements (Continued):
Outlet Center
The Agency entered into an Owner Participation Agreement with NG /Chelsea Lake Elsinore
Limited Partnership pertaining to the development of a factory retail outlet. The factory outlet
center is located in Redevelopment Project Area 1. Pursuant to the Agreement, the Agency is
required to pay the annual special assessment levied by Assessment District 86 -1. The bonds
issued by Assessment District 86 -1 mature in the year 2015 and the annual special assessment
is approximately $108,000. As of June 30, 2010, the Agency owes $523,588 which has been
included in the long -term obligations.
E. Loans Payable:
Elsinore Valley Municipal Water District (EVMWD) - Amber Ridge
In February 1995, the City and the Agency entered into an agreement with the EVMWD
whereby the Agency would reimburse the EVMWD's annual loan payment related to project
costs of the EVMWD and a loan payable to the State Water Resources Control Board. The
Agency's annual installments of $60,740 are due July 1, 1999 to July 1, 2014; interest from
2.70% to 6.00 %.
Future debt requirements for the loans are as follows:
Year Ending
June 30.
2011
2012
2013
2014
2015
Totals
See independent auditors' report.
Principal Interest
$ 51,543
53,436
55,412
57,473
38,856
$ 9,197
7,304
5,328
3,267
1,112
Total
$ 60,740
60,740
60,740
60,740
39,968
$ 256,720 $ 26.208 $ 282,928
-62-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
6. LONG -TERM LIABILITIES (CONTINUED):
E. Insurance Premium Deposit Payable:
The City has a liability to the California Joint Powers Insurance Authority (Insurance
Authority) for retrospective deposit liabilities in the amount of $518,521 at June 30, 2010. The
liabilities are payable in annual installments and reported as a liability of the governmental
activities.
F. Other Post - Employment Benefit Obligation:
Other post - employment benefit obligation is not expected to be funded with current resources
and has been reported as a liability of the governmental activities.
G Compensated Absences:
Compensated absences are liquidated by the General Fund and are reported as a liability of the
governmental activities.
7. LOANS PAYABLE TO PUBLIC FINANCING AUTHORITY.
Periodically the City of Lake Elsinore's Public Financing Authority (the Authority) issues Tax
Allocation Revenue Bonds for financing projects of the Agency and to provide funds for the
various debt obligations of the Agency. The Agency entered into loan agreements with the
Authority which mirrored the bonds issued by the Authority. Concurrent with the execution and
delivery of the loan agreements, the Authority issued the aggregate principal amount of the Tax
Allocation Revenue Bonds to the Agency. The loans were made as an advance for the principal
amount which was made from the proceeds of the bonds on the closing date of the bond. The
principal and interest are payable in installment payments not les than three business days prior to
the due date on the bonds.
At June 30, 2010, loan agreements between the Agency and Authority totaled $54,545,000 based
on 1999 Series A Tax Allocation Revenue Bonds and 2010 Series A and Series B Tax Allocation
Revenue Bonds as described below. Since these loans are interfund activities, they are excluded
from the long -term liabilities schedule on Note 6 and on the Statement of Net Assets.
See independent auditors' report.
-63-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
7. LOANS PAYABLE TO PUBLIC FINANCING AUTHORITY (CONTINUED):
1995 Series A
In December 1995, $13,345,000 principal amount of Tax Allocation Revenue Bonds, Series A, was
issued by the Authority. Concurrent with this issue, the principal amount was loaned to the
Agency. The proceeds of the loan were used to redeem $8,385,000 1995 Series A loan and a
portion of the $9,600,000 1993 Series A loan from the Authority. The bonds were refunded by the
2010 Series A Tax Allocation Bonds in April 2010.
1999 Series A
In February 1999, $33,450,000 principal amount of Tax Allocation Revenue Bonds, Series A, was
issued by the Authority. Concurrent with this issue, the principal amount was loaned to the
Agency. The proceeds of the loan were used to advance refund $34,825,000 of outstanding 1992
Tax Allocation Revenue Bonds and to provide funds for the acquisition and construction of certain
public improvements within the Rancho Laguna Redevelopment Project Areas I and II. The loan is
payable in annual principal installments varying from $410,000 to $2,175,000 through 2030 and
bear interest rates varying from 5.00% to 5.50 %. The loan balance at June 30, 2010 is
$28,255,000. At June 30, 2010, the Agency has a cash reserve fund balance for debt service of
$2,302,769, which is sufficient to cover the Bond Indenture Reserve Requirement of $2,302,750.
1999 Series B
In February 1999, $580,000 principal amount of Tax Allocation Revenue Bonds, Series B, was
issued by the Authority. Concurrent with this issue, the principal amount was loaned to the
Agency. The proceeds of the loan were used to advance refund $34,825,000 of outstanding 1992
Tax Allocation Revenue Bonds and to provide funds for the acquisition and construction of certain
public improvements within the Rancho Laguna Redevelopment Project Area II. The final loan
payment was made in fiscal year 2009 -2010.
1999 Series C
In October 1999, $14,180,000 principal amount of Tax Allocation Revenue Bonds, Series C, was
issued by the Authority. Concurrent with this issue, the principal amount was loaned to the
Agency. The proceeds of the loan were used to advance refund $12,578,000 of outstanding 1993
Tax Allocation Revenue Notes Series A, 1995 Tax Allocation Revenue Bonds Series B and to
provide funds for the acquisition and construction of certain public improvements within the
Rancho Laguna Redevelopment Project Areas I, II and III. In February 2010, the bonds were
refunded by the 2010 Series A Tax Allocation Revenue Bonds.
See independent auditors' report.
-64-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
7. LOANS PAYABLE TO PUBLIC FINANCING AUTHORITY (CONTINUED):
2010 Series A
In February 2010, $15,435,000 principal amount of Tax Allocation Revenue Bonds, Series A, was
issued by the Authority. Concurrent with this issue, the principal amount was loaned to the
Agency. The proceeds were used to advance refund $13,170,000 of outstanding 1999 Series C Tax
Allocation Revenue Bonds. The loan is payable in annual installments of $305,000 to $2,910,000
from September 1, 2010 through September 1, 2033; interest at 2.00% to 5.25 %. The loan balance
at June 30, 2010 is $15,435,000. At June 30, 2010, the Agency has a cash reserve balance for debt
service of $1,471,930 which is sufficient to cover the Bond Indenture Reserve Requirement.
The advance refunding resulted in an economic gain of $1,277,035 and a decrease in cash flows of
$96,017. Proceeds from the 2010 Series A bonds were invested in an escrow fund with a trustee
which together with earnings will pay interest and principal on the bonds until fully retired. The
1999 Series C bonds are legally defeased and are no longer a liability of the Agency.
2010 Series B
In May 2010, $10,855,000 principal amount of Tax Allocation Revenue Bonds, Series B, was
issued by the Authority. Concurrent with this issue, the principal amount was loaned to the
Agency. The proceeds were used to advance refund $10,065,000 of outstanding 1995 Series A Tax
Allocation Revenue Bonds. The advance refunding resulted in an economic gain of $757,319 and
a decrease in cash flows of $893,956. Proceeds from the 2010 Series B bonds were invested in an
escrow fund with a trustee which together with earnings will pay interest and principal on the
bonds until fully retired. The 1995 Series A bonds are legally defeased and are no longer a liability
of the Agency. The loan is payable in annual installments of $515,000 to $895,000 from
September 1, 2010 through September 1, 2025; interest at 2.00% to 4.75 %. The loan balance at
June 30, 2010 is $10,855,000. At June 30, 2010, the Agency has a cash reserve balance for debt
service of $939,541 which is sufficient to cover the Bond Indenture Reserve Requirement.
Future debt requirements for the loans payable to the Public Financing Authority are as follows:
Year Ending
June 30,
2011
2012
2013
2014
2015
2016-2020
2021-2025
2026-2030
2031-2034
Totals
Principal
$ 1,955,000
1,650,000
1,710,000
1,770,000
1,840,000
10,470,000
13,180,000
12,890,000
9,080,000
54,545.000
See independent auditors' report.
-65-
Interest
$ 2,594,512
2,551,249
2,487,469
2,41 6,779
2,343,225
10,531,031
7,623,491
4,132,525
836,943
35,517,224
Total
$ 4,549,512
4,201,249
4,197,469
4,186,779
4,183,225
21,001,031
20,803,491
17,022,525
9,916,943
90.062.224
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
8. ADVANCES PAYABLE:
The General Fund advanced the Agency $8,158,238 from 1997 through 2002 and $903,250 for the
fiscal year ended June 30, 2003. The advances are to cover certain administrative costs and a legal
settlement related to the Agency. Payments of $467,724 are to be made on an annual basis through
fiscal year 2032. Interest is accrued cumulatively on the advances at a rate of 2.715 %.
Future debt requirements for the advances to the Agency are as follows:
Year Ending
June 30
2011
2012
2013
2014
2015
2016-2020
2021 -2025
2026-2030
2031-2032
Totals
Principal
$ 259,430
266,474
273,710
281,141
288,775
1,565,837
1,790,283
2,046,900
898,685
7.671.235
9. SPECIAL ASSESSMENT DISTRICT BONDS:
Interest
$ 208,294
201,250
194,014
186,583
178,949
772,783
548,337
291,720
36,765
$ 2.618.695
Total
$ 467,724
467,724
467,724
467,724
467,724
2,338,620
2,338,620
2,338,620
935,450
$ 10.289.930
The payment of these bonds is secured by valid assessment liens upon certain lands in each district
and are not direct liabilities of the City. Reserves have been established to meet delinquencies
should they occur. Neither the faith and credit nor the taxing power of the City is pledged to the
payment of the bonds. If delinquencies occur beyond the amounts held in those reserves, the City
has no duty to pay those delinquencies out of any other available funds. The City has used the
proceeds of the Local Agency Revenue Bonds to invest in the Special Assessment District Bonds
and acts solely as an agent for those paying assessments and the bondholders.
A summary of Special Assessment Bonds outstanding at June 30, 2010, for which the City has no
liability or commitment, follows:
Original
Issue
Amount
Assessment District No. 86 -1 Improvement Bonds $ 4,712,332
Assessment District No. 90 -1 A Improvement Bonds 1,780,000
Assessment District No. 93 -1 Refunding Improvement
Bonds, Series 2000 19,875,000
Total Assessment District Bonds
See independent auditors' report.
Bonds
Outstanding at
June 30. 2010
$ 1,783,325
1,075,000
17,360,000
20.218.325
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
10. COMMUNITY FACILITIES DISTRICT BONDS:
These bonds are authorized pursuant to the Mello -Roos Community Facilities District Act of 1982
as amended, and are payable from special taxes levied on property within the Community Facility
Districts according to a methodology approved by the voters within the District and by the City
Council of the City of Lake Elsinore. Neither the faith and credit nor taxing power of the City is
pledged to the payment of the bonds. Reserves have been established from the bond proceeds to
meet delinquencies should they occur. If delinquencies occur beyond the amounts held in those
reserves, the City has no duty to pay the delinquency out of any available funds of the City. The
City has used the proceeds of the Local Agency Revenue Bonds to invest in these Community
Facilities District Bonds and acts solely as an agency for those paying taxes levied and the
bondholders. Therefore, the outstaying balances of these bonds are not reflected in these financial
statements. A summary of Mello -Roos Bonds outstanding at June 30, 2010 follows:
Original
Bonds
Issue
Outstanding at
Amount
June 30, 2010
Community Facilities District 90 -2 Tuscany Hills
Public Improvements 2002 Series
$ 14,470,000
$ 8,565,000
Community Facilities District 95 -1 Lake Elsinore
City Center Public Improvements
1,600,000
1,250,000
Community Facilities District 98 -1 Summerhill
Public Improvements
17,660,000
17,605,000
Community Facilities District 2003 -2 Canyon
Hills 2004 Series A
12,235,000
11,975,000
Community Facilities District 2004 -3 Roseta
Canyon 2005 Series A
22,635,000
22,375,000
Community Facilities District 2005 -1 Serenity
2006 Series A
9,180,000
8,975,000
Community Facilities District 2005 -2 Alberhill
Ranch 2005 Series A
24,680,000
24,575,000
Community Facilities District 2005 -6 City
Center Townhomes 2006 Series A
3,525,000
3,510,000
Community Facilities District 90 -2 Tuscany Hills
Public Improvement 2007 Series A
7,340,000
7,340,000
Community Facilities District 2003 -2 Canyon Hills
2006 Series A
20,570,000
20,425,000
Community Facilities District 2004 -3 Roseta
Canyon 2006 Series A
23,460,000
23,375,000
Community Facilities District 2006 -2 Viscaya
2006 Series A
7,290,000
7,255,000
Community Facilities District 88 -3
2008 Series A
24,670,000
21,485,000
Community Facilities District 88 -3
2008 Series A
7,175,000
6,845,000
Community Facilities District 88 -3
2008 Series B
3,265,000
3,265,000
Total Community Facilities District Bonds
$ 188,820.000
See independent auditors' report.
-67-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
The City and Agency have entered into a bond and loan program to assist low and moderate
income homebuyers of multi - family residential developments with the City limits. Although the
City has arranged the financing program, these debts are not payable from any revenues or assets
of the City. Neither the faith and credit nor the taxing power of the City, or any political
subdivision of the City, is pledged to repay the indebtedness. Accordingly, since these debts do not
constitute an obligation of the City, they are not reflected in the accompanying financial statements.
Original Bonds
Issue Outstanding at
Amount June 30, 2010
Lakeside Village Project - Due January 1, 2031 $ 5,000,000 $ 4.353.100
12. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS:
During the course of normal operations, the City entered into numerous transactions between
funds, including expenditures and transfers of resources to provide services, construct assets and
service debt. The accompanying governmental fund financial statements generally reflect such
transactions as operating transfers. Nonrecurring or nonroutine permanent transfers of equity are
reported as residual equity transfers. Interfund transactions and interfund receivables /payables at
year -end are not eliminated in the governmental fund financial statements.
Due to and from other funds at June 30, 2010 are as follows:
Receivable Fund
Payable Fund
Amount
General Fund
Redevelopment Agency
Debt Service Fund
$ 1,292,885
Public Financing Authority
Debt Service Fund
5,515
Other Governmental Funds
391,234
Redevelopment Agency Debt
Service Fund
Other Governmental Funds
4,809,388
Other Governmental Funds
Other Governmental Funds
45.595
$ 6,544.617
The General Fund loaned the Redevelopment Agency Debt Service Fund, the Public Financing
Authority Debt Service Fund and Other Governmental Funds $1,292,885, $5,515 and $391,234,
respectively and the loans were used to provide cash flows for expenditures.
The Redevelopment Agency Debt Service Fund loaned Other Governmental Funds $4,809,388 and
the loan was used to provide cash flows for expenditures.
See independent auditors' report.
Im
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
12. INTERFUND RECEIVABLES/PAYABLES AND TRANSFERS (CONTINUED):
Advances to and from other funds at June 30, 2010 are as follows:
Receivable Fund
General Fund
Redevelopment Agency
Special Revenue Fund
Payable Fund
Redevelopment Agency
Debt Service Fund
Redevelopment Agency
Debt Service Fund
Amount
$ 7,671,235
37,401,756
45.072.991
The General Fund advanced $7,671,235 to the Redevelopment Agency Debt Service Fund to
provide funds to fund Agency projects.
The advances from the Redevelopment Agency Special Revenue Fund to the Redevelopment
Agency Debt Service Fund were made from: (a) the 1995 Series A and 1999 Series C bond
proceeds deposited in the Rancho Laguna Special Revenue Fund. The 1995 Series A and 1999
Series C bonds were refunded in fiscal year 2010 with the issuance of the 2010 Series A and 2010
Series B bonds. The advances payable include an original loan amount of $18,040,439 and
accrued interest of $15,611,317 and (b) advances in the amount of $3,750,000 was a result of
suspending a portion of the 20% set aside requirement to assist in the payment of the SERAF
obligation for fiscal year 2010.
The compositions of the City's interfund transfer balances as of June 30, 2010 are as follows:
Transfers In Transfers Out Amount
General Fund Other Governmental Funds $ 20,000
Other Governmental Funds
General Fund
Redevelopment Agency
Debt Service Fund
Other Governmental Funds
Transfers were made to provide cash flows for expenditures.
See independent auditors' report.
-69-
658,298
2,000,000
1,822,396
4,500694
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
13. FUND BALANCE RESERVES AND DESIGNATIONS:
The various reserves and designations at June 30, 2010 are as follows:
Reserved for Debt Service
This reserve was established for cash restrictions for future debt service in such a manner that they
will not be considered as current available funds.
Reserved for Encumbrances
This reserve was established to represent the portion of purchase orders and contracts awarded for
which goods and services have not yet been received at June 30, 2010, in such a manner that they
will not be considered as current available funds.
See independent auditors' report.
-70-
Redevelopment
Redevelopment
Public Financing
Agency
Agency
Authority
Other
General
Special Revenue
Debt Service
Debt Service
Governmental
Fund
Fund
Fund
Fund
Funds
Reserved:
Debt service $
-
$ 1,461,936
$ 3,325,656
$ 60,948,950
$ 3,065
Encumbrances
23,379
-
-
-
704,910
Specific projects
129,669
-
-
-
1,412,476
Loans receivable
-
-
-
54,545,000
-
Advance to
other funds
7,671,235
18,040,439
-
-
-
Low and moderate
income housing
-
12,103,837
-
-
-
Prepaid and other assets
769,235
-
106,108
-
-
Land held for resale
-
2,714,687
-
-
6,088,480
Capital replacement
-
-
-
-
18,000
Unreserved:
Designated for
future
contingencies
5,673,298
-
-
-
-
Undesignated
650,503
-
(28,296,761)
-
12,487,343
Totals 14,917,319
S 34,320,899
(24,864,9971
115,493,950
20,714,274
Reserved for Debt Service
This reserve was established for cash restrictions for future debt service in such a manner that they
will not be considered as current available funds.
Reserved for Encumbrances
This reserve was established to represent the portion of purchase orders and contracts awarded for
which goods and services have not yet been received at June 30, 2010, in such a manner that they
will not be considered as current available funds.
See independent auditors' report.
-70-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
13. FUND BALANCE RESERVES AND DESIGNATIONS (CONTINUED):
Reserved for Specific Projects
This reserve was established to represent specific projects for which the City has made a
commitment towards completion in such a manner that they will not be considered as current
available funds.
Reserved for Loans Receivable
This reserve was established to reflect the noncurrent portion of loans receivable in such a manner
that they will not be considered as current available funds.
Reserved for Advances to Other Funds
This reserve was established to represent amounts that were advanced to the Rancho Laguna
Redevelopment Projects Areas I and II in such a manner that they will not be considered as current
available funds.
Reserved for Low and Moderate Income Housing
This reserve was established to represent amounts set -aside for low to moderate income housing
for expenditures which benefit low to moderate income families.
Reserved for Prepaid and Other Assets
This reserve was established to represent amounts that were paid prior to June 30, 2010 for fiscal
year 2009 -10 in such a manner that they will not be considered as current available funds.
Reserved for Land Held for Resale
This reserve was established to remove land held for resale from current fund balances in such a
manner that they will not be considered as current available funds.
See independent auditors' report.
-71-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
13. FUND BALANCE RESERVES AND DESIGNATIONS (CONTINUED):
Reserved for Capital Replacement
This reserve was established from fund balances to reserve fund balances for capital replacement.
Designated for Future Contingencies
This designation is for resources from the General Fund for future contingencies.
A. Restatement of Net Assets - Government -wide Financial Statements:
Net assets at the beginning of the year in the government -wide financial statements have been
restated as follows:
Net assets as previously reported
Increase in net assets to record
cash with fiscal agent (1995A bonds)
Decrease in net assets to record
additional redevelopment agency
liabilities
Increase in net assets to correct
expenditures incorrectly charged
in prior years
Net assets as restated
See independent auditors' report.
-72-
Governmental
Activities
$ 166,858,188
1,023,464
(740,192)
127,482
167,268,942
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
14. RESTATEMENT OF NET AS BALANCES (CONTINUED):
B. Restatement of Fund Balances - Governmental Fund Financial Statements:
Fund balances at the beginning of the year in the governmental fund financial statements have
been restated as follows:
Fund balances (deficits) at the beginning of the year,
as previously reported
Adjustment to increase fund balance in special revenue fund
and decrease fund balances in debt service funds to record
interfund loans not reported in prior years
Adjustment to decrease fund balance in special revenue fund
and increase fund balances in debt service funds to correct
recording of debt service payments in the correct funds from
fiscal year 1996 to 2005
Adjustment to decrease fund balance in special revenue fund
and increase fund balances in debt service funds to correct
reporting of debt service payments in the correct funds.
Adjustment to record interest expense (payable) in debt
service funds on loan from special revenue funds from fiscal
year 1996 to 2009
Adjustment to increase fund balance in special revenue fund
to record cash with fiscal agent for 1995A bonds
Adjustment to decrease fund balance for additional liabilities
to developers agreements for the prior years
Fund balance (deficits) at the beginning of year,
as restated
See independent auditors' report.
-73 -
Redevelopment Redevelopment
Agency
Agency
Special
Debt
Revenue
Service
Fund
Fund
$ 34,434,846 $ (3,775,983)
15,040,440 (15,040,440)
(9,929,887) 9,929,887
(5,230,426) 5,230,426
(14,884,963)
1,023,464
(25,532) (587,178)
$ 35,312,905 $ (19,128,251)
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 3 0, 2010
15. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES:
It is the City's intention to seek authority from the City Council to realign the current year's budget
to reflect priority changes in the goals and objectives of the City. This realignment did not take
place in the current year budget; therefore, expenditures exceeded appropriations in the following
funds:
See independent auditors' report.
-74-
Expenditures
Appropriations
Major Fund:
Redevelopment Agency Special Revenue Fund
$ 4,375,930
$ 3,226,769
Other Governmental Funds:
Supplemental Law Enforcement Service
Special Revenue Fund
100,270
100,000
L.L.E.B.G Program Special Revenue Fund
73,745
70,429
Office of Traffic and Safety Special Revenue Fund
213,159
208,625
Gas Tax Special Revenue Fund
783,893
674,658
Lighting and Landscaping Special Revenue Fund
1,320,892
1,313,200
L.L.M.D. No. 1 Special Revenue Fund
180,888
171,000
Storm Drain Capital Projects Fund
771,471
140,915
Traffic Improvements Capital Projects Fund
601,312
2,158
TUMF Capital Projects Fund
1,479,210
1,423,000
The following funds had a deficit fund balance at June 30, 2010. These deficits
are expected to be
eliminated through future revenues and transfers.
Amount
Major Fund:
Redevelopment Agency Debt Service Fund
$ 24,864,997
Other Governmental Funds:
L.L.E.B.G Program Special Revenue Fund
12,313
Office of Traffic and Safety Special Revenue Fund
69,729
Lighting and Landscaping Special Revenue Fund
3,797
C.D.B.G Special Revenue Fund
113,196
N.P.D.E.S. Special Revenue Fund
25,816
Recreation Authority Debt Service Fund
5,819
TUMF Capital Projects Fund
154,879
See independent auditors' report.
-74-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
16. PENSION PLAN:
Plan Description
The City contributes to the California Public Employees Retirement System (PERS), an agent
multiple- employer public employee defined benefit pension plan. PERS provides retirement and
disability benefits, 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. As of July 1, 2005, the City was mandated by the State to
participate in the risk pool. The risk pool combines the assets and liabilities across employers of
the same risk pool to provide a method to spread the risk of uncertain gains and losses over a larger
base of members. 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, California 95814.
All full -time City employees are eligible to participate in PERS. Benefits vest after five (5) years
of credited service. Employees are eligible for retirement at the age of 55 and are entitled to a
monthly benefit of 2.5% of final compensation, the highest average monthly compensation earned
during any period of three consecutive years, for each year of service credit. Retirement may begin
at age 50 with a reduced benefit rate. PERS also provides death and disability benefits. Upon
separation from the plan, members' accumulated contributions are refundable with interest credited
through the date of separation.
Annual Required Contribution
PERS, participants are required to contribute on the basis of a percentage of regular earnings. The
percentages are set by statute and, therefore, generally remain unchanged from year to year.
The present rates are:
Member Rates
As A Percentage
Of Wages
Local Miscellaneous Members 8.00%
For employees who are covered by formulas modified to coordinate with social security, a rate of
zero is charged for the first $133.33 per month.
Also, there is an additional charge for employees covered by the 1959 Survivor Benefit, $2.00 per
covered member per month.
See independent auditors' report.
-75-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 3 0, 2010
16. PENSION PLAN (CONTINUED):
Annual Required Contribution (Continued)
The City is required to contribute the remaining amounts necessary to fund the benefits for its
members, using the actuarial basis recommended by the PERS actuaries and actuarial consultants
and adopted by the Board of Administration. The contribution rates at June 30, 2010, 2009
and 2008 were 16.485 %, 17.50% and 18.35 %, respectively. The City's contributions to Ca1PERS
for the years ended June 30, 2010, 2009 and 2008 were $1,022,973, $1,240,414 and $1,208,104,
respectively, and were equal to required contributions for each year.
17. OTHER POST-EMPLOYMENT BENEFITS:
Plan Description
In addition to providing pension benefits, the City provides post - employment benefits for retired
employees. In accordance with City Resolution 89 -42 dated September 1989, the City provides
health insurance premium costs to qualifying employees. Employees who retire from the City on
or after attaining age 55 with at least 5 years of service with the City, qualify to receive the
post - employment benefit. The City pays 100% of the retirees' and authorized dependents monthly
medical premiums.
Funding Policy
The contribution requirements of plan members and the City are established and may be amended
by the City, the City's City Council, and/or the employee associations. Currently, contributions
are not required from plan members. Contributions are funded on a pay -as- you -go basis. During
the fiscal year ended June 30, 2010, the City elected to fund $317,810 towards the unfunded
accrued liability related to this benefit.
Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated based on the annual required contribution of
the employer (ARC), an amount actuarially determined in accordance with parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected
to cover normal cost each year and to amortize any unfunded liabilities of the plan over a period
not to exceed thirty years. The ARC for fiscal year 2009 -10 was $1,356,199.
See independent auditors' report.
-76-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
17. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
Annual OPEB Cost and Net OPEB Obligation (Continued)
The following table shows the components of the City's annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in the City's net OPEB obligation.
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB cost
Actual contributions made
Increase in net OPEB obligation
Net OPEB Obligation - beginning of year
Net OPEB Obligation - end of year
Three -Year Trend Information
$ 1,356,199
1,356,199
(317,810)
1,038,389
1,048,397
$ 2.086.786
For fiscal year 2010, the City's annual OPEB cost (expense) of $1,356,199 was equal to the ARC.
Since this fiscal year is the second year, information on the annual OPEB cost, percentage of
Annual OPEB cost contributed, and Net OPEB Obligation is only available for the past two fiscal
years, as presented below:
Fiscal
Year
Ended
6/30/09
6/30/10
Annual
OPEB
Cost
$ 1,356,199
1,356,199
Funded Status and Funding Progress
Actual
Contributions
(Net of
Adjustments)
$ 307,802
317,810
Percentage
of Annual
OPEB Cost
Contributed
22.70%
23.43%
Net
OPEB
Obligation
$ 1,048,397
2,086,786
As of July 1, 2008, the first actuarial valuation date, the plan was zero percent funded. The
actuarial accrued liability for benefits was $8,791,806 and the actuarial value of assets was zero,
resulting in an unfunded accrued liability (UAL) of $8,791,806. The covered payroll (annual
payroll of active employees covered by the plan) was $5,280,551 and the ratio of the UAL to the
covered payroll was 166.49 %.
See independent auditors' report.
-77-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
17. OTHER POST-EMPLOYMENT BENEFITS (CONTINUED):
Funded Status and Funding Progress (Continued)
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 City
are subject to continual revision as actual results are compared with past expectations and new
estimates are made about the future. The schedule of funding progress, presented as required
supplementary information following the notes to basic financial statements, presents multi -year
trend information about whether the actuarial value of plan assets is increasing or decreasing over
time relative to the actuarial accrued liabilities for benefits.
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 actuarial accrued
liabilities and the actuarial value of assets, consistent with the long -term perspective of the
calculations.
In the July 1, 2008 actuarial valuation, the frozen entry age method was used. The actuarial
assumptions included a rate of return on assets of 7.75% per annum and a medical cost trend rates
ranging from 5.5% to 9% for the first four years and an ultimate rate of 5.0% after four years,
dental cost trend is 4% per year. The City's unfunded actuarial accrued liability is being amortized
by level dollar contributions over twenty years as a level dollar amount.
18. DEFERRED COMPENSATION:
The City offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. On August 20, 1996 the provisions of Internal Revenue Code (IRC)
Section 457 were amended to require new plans to place all assets and income of the plans in trust
for the exclusive benefit of participants and their beneficiaries. Plans in existence as of the date of
this change must place the Plan assets and income in trust by January 1, 1999. Once the assets and
income are placed in trust the City no longer owns the amounts deferred by employees and related
income. Prior to this IRC Section 457 Amendment, the deferred amounts and related income
remained as property of the City until withdrawn by the employee.
See independent auditors' report.
-78-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
18. DEFERRED COMPENSATION (CONTINUED):
During the 1997 -98 fiscal year, the City placed its Deferred Compensation Plan assets and related
income in trust as allowed by IRC Section 457 and as a result the asset and corresponding liability
are no longer presented in these financial statements. This change had no impact on the City's fund
equity.
19. LIABILITY, PROPERTY AND PROTECTION:
The City is a member of the California Joint Powers Insurance Authority (Insurance Authority).
The Insurance Authority is composed of 122 California public entities and is organized under a
joint powers agreement pursuant to California Government Code Section 6500 et. seq. The
purpose of the Insurance Authority is to arrange and administer programs for the pooling of
self - insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased
insurance for property and other coverages. The Insurance Authority's pool began covering claims
of its members in 1978. Each member government has an elected official as its representative on
the Board of Directors. The Board operates through a 9- member Executive Committee.
Self- Insurance Programs of the Insurance Authority
General Liability Insurance
Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims
year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit
computation is then made for each open claims year. Claims are pooled separately between police
and non - police. Costs are allocated to members by the following methods within each of the four
layers of coverage: (1) the first $30,000 of each occurrence is charged directly to the member's
primary deposit; (2) costs from $30,000 to $750,000 and the loss development reserves associated
with losses up to $750,000 are pooled based on the member's share of losses under $30,000;
(3) losses from $750,000 to $2,000,000 and the associated loss development reserves are pooled
based on payroll; (4a) costs of covered claims from $2,000,000 to $50,000,000 are paid under
reinsurance and excess insurance policies; (4b) subject to a $3,000,000 annual aggregate
deductible; (4c) and a quota - sharing agreement whereby the Insurance Authority is financially
responsible for 40% of losses occurring within the $2,000,000 to $10,000,000 layer. The costs
associated with 4a -c are estimated using actuarial models and pre - funded as part of the primary and
retrospective deposits.
The overall policy limit for each member including all layers of coverage is $50,000,000 per
occurrence. Costs of covered claims for subsidence losses are paid by excess insurance with the
following sub - limits per member: $25,000,000 per occurrence with a $15,000,000 annual
aggregate.
See independent auditors' report.
-79-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
19. LIABILITY, PROPERTY AND PROTECTION (CONTINUED):
Purchased Insurance:
Property Insurance
The City participates in the all -risk property protection program of the Insurance Authority. This
insurance protection is underwritten by several insurance companies. The City's property is
currently insured according to a schedule of covered property submitted by the City to the
Insurance Authority. The City's property currently has all -risk property insurance protection in the
amount of $34,672,957. There is a $5,000 deductible per occurrence except for non - emergency
vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and
are not subject to retroactive adjustments.
Crime Insurance
The City purchases crime insurance coverage in the amount of $1,000,000 with a $2,500
deductible. The fidelity coverage is provided through the Insurance Authority. Premiums are paid
annually and are not subject to retroactive adjustments.
Adequacy of Protection
During the past three fiscal (claims) years, none of the above programs of protection have had
settlements or judgments that exceeded pooled or insured coverage. There have been no significant
reductions in pooled or insured liability coverage from coverage in the prior year.
The aforementioned information is not included in the accompanying financial statements.
Complete financial statements for the Insurance Authority may be obtained at their administrative
office located at 8081 Moody Street, La Palma, California 90623.
20. LITIGATION:
The City is a defendant in several other pending lawsuits of a nature common to many similar
jurisdictions. City management estimates that the potential claims against the City not covered by
insurance resulting from such litigation would not materially affect the basic financial statements of
the City.
See independent auditors' report.
-80-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
21. COMMITMENTS AND CONTINGENCIES:
The Agency has entered into several developer agreements to attract new business to the City. The
following represents the Agency's significant commitments with certain developers:
Laing Elsinore LLC
The Agency has entered into a Disposition and Development Agreement (the DDA) with Laing -CP
Lake Elsinore LLC and Civic Partners- Elsinore LLC, as developer and master developer,
respectively, covering an area of approximately 3,000 acres. As a result of the bankruptcy of the
managing member of Laing -CP Lake Elsinore LLC, Bank of America has foreclosed on and now
owns the property subject to the DDA. The Agency has pledged 100% of the net tax increment,
excluding moneys to be set aside in the low and moderate income housing fund and existing
pass - through agreements, pursuant to the DDA. The DDA prohibits any further bonded
indebtedness secured by tax increment generated by the project site, other than for specified project
purposes. The Agency has accrued tax increment due under the DDA for payment when due
pursuant to the terms of the DDA.
Supplemental Education Revenue Augmentation Fund (SERAF)
Pursuant to AB 26 4x, a budget trailer bill, California redevelopment agencies were required to
make Supplemental Education Revenue Augmentation Fund (SERAF) contributions totaling
$1.7 billion for the fiscal year 2009 -2010 and $350 million for the fiscal year 2010 -2011. Under
AB 26 4x, agencies may borrow a portion of the required contributions from their low and
moderate income housing fund. Alternatively, sponsoring governmental agencies (the cities or
counties) may elect to pay the SERAF contributions on behalf of their redevelopment agencies. On
October 20, 2009, the California Redevelopment Association filed a class action lawsuit on behalf
of all California redevelopment agencies, again challenging the SERAF obligations as
unconstitutional. The court ruled that the SERAF obligations were not unconstitutional.
The Agency's SERAF contributions for the fiscal year 2009 -2010 was $6,976,853. The Agency
paid $3,226,853 from non - housing funds and the balance of $3,750,000 was from suspending a
portion of the 20% set aside amount for fiscal year 2010 as allowed by the legislation.
The Agency's SERAF contributions for the fiscal year 2010 -2011 will be $1,435,054.
See independent auditors' report.
-81-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTES TO BASIC FINANCIAL STATEMENTS
(CONTINUED)
June 30, 2010
21. COMMITMENTS AND CONTINGENCIES (CONTINUED):
Disposition and Development Agreement
The Redevelopment Agency has entered into a disposition and development agreement with
Pottery Court Housing Associates, L.P. to provide a loan in an amount not to exceed $4,061,000
from the housing fund. The interest on the loan is to be paid at a rate of 3 percent per year with
payments due annually on July 1. The payment on the loan will be based on annual payments equal
to 75% of the Agency's share of the residual receipts as defined in the DDA agreement
commencing on July 1 in the calendar year immediately following the calendar year in which the
deed of trust evidencing the loan is recorded in the official records of Riverside County. The loan
with accrued interest is payable in full on the date which is 55 years from the date of recording of
the release of construction covenants. As of June 30, 2010, the Agency has purchased land from
various property owners, including the City at a cost of $3,271,097 to provide the developer the
property for this project. The land has not been transferred to the developer and therefore no loan
balance due under this agreement is reported on the balance sheet of the housing fund.
22. JOINT POWERS AGREEMENT:
On March 28, 2000, the City agreed to enter into a joint powers agreement under Proposition 13
with Elsinore Valley Municipal Water District and the Santa Ana Watersheds Project Authority to
form the Lake Elsinore and San Jacinto Watersheds Authority. The Authority is due to receive
$15 million in Proposition 13 water bond proceeds to improve the Lake Elsinore and San Jacinto
Watersheds Authority lake water quality. As of June 30, 2010, the Authority had minimal activity
and according to the criteria in Note lA, the Authority is not included in these financial statements.
23. SUBSEQUENT EVENTS:
Issuance of Tax Allocation Revenue Bonds 2010 Series C
In November 2010, Lake Elsinore Public Financing Authority issued Tax Allocation Revenue
Bonds 2010 Series C in the aggregate principal amount of $29,435,000. The proceeds were loaned
to the Redevelopment Agency to refund the 1999 Series A Bonds.
Issuance of Local Agency Revenue Bonds 2010 Series A
In November 2010, Lake Elsinore Public Financing Authority issued Local Agency Revenue
Bonds 2010 Series A in the aggregate principal amount of $7,430,000. The proceeds were used to
acquire local obligation bonds.
Issuance of Tax Allocation Revenue Bonds 2011 Series A
In January 2011, Lake Elsinore Public Financing Authority issued Tax Allocation Revenue Bonds
(Launch Ramp Project) 2011 Series A in the aggregate principal amount of $5,550,000. The
proceeds were loaned to the Redevelopment Agency to finance certain public facility projects in
Redevelopment Project No. I.
See independent auditors' report.
-82-
REQUIRED SUPPLEMENTARY INFORMATION
- 83 -
CITY OF LAKE ELSINORE
SCHEDULE OF FUNDING PROGRESS
For the year ended June 30, 2010
OTHER POST - EMPLOYMENT BENEFITS PLAN
See independent auditors' report.
-84-
Actuarial
Actuarial
UAAL as a
Accrued
Value of
Unfunded
Annual
% of
Actuarial
Liability
Assets
AAL
Funded
Covered
Covered
Valuation
(AAL)
(AVA)
(UAAL)
Ratio
Payroll
Payroll
Date
(a)
(b)
(a) - (b)
(b) /(a)
(c)
[(a)- (b)] /(c)
7/1/2008
$ 8,791,806
$ -
$ 8,791,806
0.00%
$ 5,280,551
166.49%
See independent auditors' report.
-84-
CITY OF LAKE ELSINORE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
REVENUES:
Property taxes
Other taxes
Licenses, permits and fees
Intergovernmental revenues
Charges for services
Fines, forfeitures and penalties
Investment income
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public safety
Community development
Public services
Community services
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER
FINANCING SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
GENERALFUND
For the year ended June 30, 2010
Budgeted Amounts
Original Final
Actual
Variance with
Final Budget
Positive
(Negative)
$ 6,446,700
$ 5,610,000
$ 5,552,290
$ (57,710)
8,684,000
8,671,437
8,517,826
(153,611)
1,078,200
1,178,200
1,663,425
485,225
221,100
221,100
195,454
(25,646)
1,889,600
1,675,880
1,594,774
(81,106)
479,000
486,869
432,663
(54,206)
450,000
450,000
310,722
(139,278)
4,035,100
3,841,832
3,844,090
2,258
23,283,700
22,135,318
22,111,244
(24,074)
5,394,722
5,604,754
5,721,152
(116,398)
11,439,296
11,450,812
11,022,531
428,281
1,792,749
1,794,155
1,814,893
(20,738)
1,627,346
1,905,516
2,006,185
(100,669)
3,637,171
3,605,319
3,313,082
292,237
20,316
20,316
20,316
-
400
400
400
-
23,912,000
24,381,272
23,898,559
482,713
(628,300) (2,245,954) (1,787,315) 458,639
20,000 20,000 20,000 -
(316,700) (16,700) (658,298) (641,598)
(296,700) 3,300 (638,298) (641,598)
(925,000) (2,242,654) (2,425,613) (182,959)
17,342,932 17,342,932 17,342,932 -
$ 16,417,932 $ 15,100,278 $ 14,917,319 $ (182,959)
See independent auditors' report and note to required supplementary information.
-85-
CITY OF LAKE ELSINORE, CALIFORNIA
BUDGETARY COMPARISON SCHEDULE
ra:103:MWI ti]U35RI 10 I: [ef2) � [WWUZia)MaR:00)►Leia1MWt
REVENUES:
Property taxes
Investment income
Miscellaneous income
TOTAL REVENUES
EXPENDITURES:
Capital outlay
Debt services:
Payment to refunding bond escrow agent
Bond issuance costs
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Discount on bonds
Refunding bonds issued
Payment to refunding bond escrow agent
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR,
AS RESTATED
FUND BALANCE - END OF YEAR
For the year ended June 30, 2010
1,153,381 (2,596,619) (3,299,228) (702,609)
- (119,642) (119,642)
- 15,655,000 15,655,000
- (13,228,136) (13,228,136)
2,307,222 2,307,222
1,153,381 (2,596,619) (992,006) 1,604,613
35,312,905 35,312,905 35,312,905 -
$ 36,466,286 $ 32,716,286 $ 34,320,899 $ 1,604,613
See independent auditors' report and note to required supplementary information.
-86-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 4,003,506
$ 253,506
$ 225,411
$ (28,095)
376,644
376,644
133,564
(243,080)
-
-
717,727
717,727
4,380,150
630,150
1,076,702
446,552
1,890,350
1,890,350
1,030,615
859,735
-
-
1,295,449
1,295,449
-
-
878,354
878,354
-
-
440,450
440,450
1,336,419
1,336,419
731,062
(605,357)
3,226,769
3,226,769
4,375,930
(1,149,161)
1,153,381 (2,596,619) (3,299,228) (702,609)
- (119,642) (119,642)
- 15,655,000 15,655,000
- (13,228,136) (13,228,136)
2,307,222 2,307,222
1,153,381 (2,596,619) (992,006) 1,604,613
35,312,905 35,312,905 35,312,905 -
$ 36,466,286 $ 32,716,286 $ 34,320,899 $ 1,604,613
See independent auditors' report and note to required supplementary information.
-86-
CITY OF LAKE ELSINORE, CALIFORNIA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
June 30, 2010
1. BUDGETS AND BUDGETARY ACCOUNTING:
The City follows these procedures in establishing the budgetary data reflected in the financial
statements:
1) In May, the City Manager submits to the City Council a proposed operating budget for the
fiscal year commencing July 1. The operating budget includes proposed expenditures and
estimated revenues and other means of financing.
2) Public hearings are conducted at City Council meetings to obtain public input.
3) Prior to July 1, the budget is adopted by Council action.
4) The City Manager is authorized to transfer funds appropriated with respect to those
classifications designated as other services and material and supplies within the same
department. The City Manager may transfer appropriated funds from any classification within
other expenditure categories to the capital outlay classification within the same department
only. For budgeting purposes, the General Fund is composed of several departments while all
other budgeted funds are considered a single department. Revenues are budgeted on a line item
basis.
5) The legal level of budgetary control is maintained at the departmental level. Formal budgetary
integration is employed as a management control device during the year for the General and
Special Revenue Fund types to assist in controlling expenditures and enforcing revenue
provisions. Capital Projects Fund types are budgeted on a project by project basis. All
appropriations lapse at the end of the fiscal year, except for capital projects which are carried
forward until such time as the project is completed or terminated.
6) Budgets for the General, certain Special Revenue and certain Capital Projects Funds are
adopted on a basis consistent with accounting principles generally accepted in the United States
of America. Budgeted amounts are as originally adopted and as further amended by the City
Council.
7) Budget information is presented for the General, certain Special Revenue and certain Capital
Projects Fund types. Formal budgeting policies are not required for the Debt Service Fund and,
therefore, the financial statement of this fund is not included in the Schedule of Revenues,
Expenditures and Changes in Fund Balances - Budget and Actual.
See independent auditors' report.
-87-
THIS PAGE INTENTIONALLY LEFT BLANK
SUPPLEMENTARY INFORMATION
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF LAKE ELSINORE, CALIFORNIA
OTHER GOVERNMENTAL FUNDS
June 30, 2010
SPECIAL REVENUE FUNDS are used to account for the proceeds of specific revenue sources (other
than expendable and nonexpendable trusts) that are restricted by law or City Council resolution to
expenditure for specific purposes.
DEBT SERVICE RECREATION AUTHORITY FUND is used to account for debt service
transactions including revenue collections and payments of principal and interest on long -term
obligations of the component unit.
CAPITAL PROJECTS FUNDS are used to account for financial resources to be used for the
acquisition or construction of redevelopment projects and administrative expenses.
-91-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING BALANCE SHEET
OTHER GOVERNMENTAL FUNDS
ASSETS
Cash and investments
Cash and investments with fiscal agents
Accounts receivable
Accrued interest receivable
Due from other funds
Due from other governments
Land held for resale
TOTAL ASSETS
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
Accrued liabilities
Deposits and other liabilities
Due to other funds
Deferred revenue
TOTAL LIABILITIES
FUND BALANCES (DEFICIT):
Reserved for:
Debt service
Encumbrances
Specific projects
Land held for resale
Capital replacement
Unreserved:
Undesignated
TOTAL FUND BALANCES (DEFICIT)
TOTAL LIABILITIES
AND FUND BALANCES
See independent auditors' report.
June 30, 2010
$ 730,852 $
Debt Service
$ 361,963
Total
Special
Fund
Capital
Other
Revenue
Recreation
Projects
Governmental
Funds
Authority
Funds
Funds
$ 9,647,765
$ -
$ 11,105,809
$ 20,753,574
-
3,065
1,276,415
1,279,480
37,179
-
53,461
90,640
4,741
-
6,472
11,213
-
-
45,595
45,595
687,746
-
895,512
1,583,258
-
-
6,088,480
6,088,480
$ 10,377,431
$ 3,065
$ 19,471,744
$ 29,852,240
$ 730,852 $
-
$ 361,963
$ 1,092,815
13,940
-
-
13,940
1,700
-
-
1,700
297,411
8,884
4,939,922
5,246,217
2,047,853
-
735,441
2,783,294
3,091,756
8,884
6,037,326
9,137,966
-
3,065
-
3,065
268,585
-
436,325
704,910
-
-
1,412,476
1,412,476
-
-
6,088,480
6,088,480
18,000
-
-
18,000
6,999,090
(8,884)
5,497,137
12,487,343
7,285,675
(5,819)
13,434,418
20,714,274
$ 10,377,431 $
3,065
$ 19,471,744
$ 29,852,240
-92-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER GOVERNMENTAL FUNDS
For the year ended June 30, 2010
REVENUES:
Licenses, permits and fees
Intergovernmental revenues
Fines, forfeitures and penalties
Investment income
Special assessments
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public services
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
699,154 - 369,902 1,069,056
7,112,333 - 3,782,546 10,894,879
569,879 - 2,794,349 3,364,228
- 355,000 - 355,000
35,588 - 35,588
8,381,366 390,588 6,946,797 15,718,751
468,900 (3,337) (3,474,018) (3,008,455)
597,018 - 3,883,676 4,480,694
(682,310) - (1,160,086) (1,842,396)
(85,292) - 2,723,590 2,638,298
383,608 (3,337) (750,428) (370,157)
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR, AS RESTATED 6,902,067 (2,482) 14,184,846 21,084,431
FUND BALANCES (DEFICIT) - END OF YEAR $ 7,285,675 $ (5,819) $ 13,434,418 $ 20,714,274
See independent auditors' report.
-93-
Debt Service
Total
Special
Fund
Capital
Other
Revenue
Recreation
Projects
Governmental
Funds
Authority
Funds
Funds
$ 600,742
$ -
$ 323,751
$ 924,493
4,740,492
-
2,386,962
7,127,454
301,129
-
-
301,129
170,226
-
261,675
431,901
1,578,779
-
-
1,578,779
1,458,898
387,251
500,391
2,346,540
8,850,266
387,251
3,472,779
12,710,296
699,154 - 369,902 1,069,056
7,112,333 - 3,782,546 10,894,879
569,879 - 2,794,349 3,364,228
- 355,000 - 355,000
35,588 - 35,588
8,381,366 390,588 6,946,797 15,718,751
468,900 (3,337) (3,474,018) (3,008,455)
597,018 - 3,883,676 4,480,694
(682,310) - (1,160,086) (1,842,396)
(85,292) - 2,723,590 2,638,298
383,608 (3,337) (750,428) (370,157)
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR, AS RESTATED 6,902,067 (2,482) 14,184,846 21,084,431
FUND BALANCES (DEFICIT) - END OF YEAR $ 7,285,675 $ (5,819) $ 13,434,418 $ 20,714,274
See independent auditors' report.
-93-
CITY OF LAKE ELSINORE, CALIFORNIA
OTHER SPECIAL REVENUE FUNDS
June 30, 2010
Supplemental Law Enforcement Service - to account for receipts and expenditures of money related to
the citizens option for public safety grant.
L.L.E.B.G Prog am - to account for grant monies received from the U.S. Department of Justice.
Expenditures for this fund are restricted to local law enforcement.
Office of Traffic and Safety - to account for monies received under federal and state programs to
enforce traffic safety laws.
Traffic Offender - to account for administrative fees generated from charges to drivers who have been
arrested for DUI, who are driving on suspended/revoked licenses, or have never been issued a drivers
license. These funds may only be used to further the traffic safety goals of the City and are subject to
OTS audit.
Gas Tax - to account for receipts and expenditures of money apportioned under the Street and
Highway Code of the State of California.
Transportation - to account for the collection of fees assessed to developers and for expenditures made
to improve the City's transportation system.
Traffic Safety - to account for expenditures financed by revenue generated from enforcement of
California vehicle codes and city ordinances. These restricted funds may be used only for traffic
signals, school crossing guards, and other related traffic safety expenditures.
Lighting and Landscape - to account for revenues derived from annual assessments which are used to
pay the costs incurred by the City for landscape maintenance and street light maintenance.
Lighting and Landscape Maintenance District (L.L.M.D.) No. 1 - to account for revenues derived from
annual assessments which are used to pay the costs incurred by the City for landscape maintenance and
street light maintenance.
Geothermal - to account for state grant monies used to maintain hot water wells owned by the City.
Air Pollution - to account for South Coast Air Quality Board receipts used to develop systems to
reduce air pollution.
Community Development Block Grant (C.D.B.G.) - to account for grant monies received from a
federal pass - through agency not accounted for in the other funds.
ILSE
CITY OF LAKE ELSINORE, CALIFORNIA
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
June 30, 2010
Endowment Trust Fund - to account for receipts used for payment of high school scholarships.
Cost Recovery System - to account for receipts of deposits paid by developers used to pay for plans
and permits.
Developer Agreement - to account for developer lot fees.
Affordable Housing in Lieu - to account for collection of fees assessed to developers and for
expenditures made on affordable housing projects.
City Hall/Public Works - to account for collection of fees assessed to developers and for expenditures
made on City Hall and Public Works facilities projects.
Community Center - to account for collection of fees assessed to developers and for expenditures made
on Community Center facilities projects.
Lake Side Facilities - to account for collection of fees assessed to developers and for expenditure made
on Lake Side facilities projects.
Animal Shelter - to account for collection of fees assessed to developers and for expenditures made on
Animal Shelter facilities projects.
Camino del Norte - to account for fees assessed to developers and for expenditures made on the
Camino del Norte projects.
Miscellaneous Grants - to account for miscellaneous Federal, State and County grants requiring
segregated fund accounting.
N.P.D.E.S. - to account for fees assessed to property owners for the National Pollutant Discharge
System (N.P.D.E.S.), which is mandated by the federal government. This requires cities to clean up
storm water runoff.
-95-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
June 30, 2010
See independent auditors' report.
-96-
Supplemental
Office of
Law
Traffic
Enforcement
L.L.E.B.G.
and
Traffic
Gas
Service
Program
Safety
Offender
Tax
ASSETS
Cash and investments
$ 89,657
$
-
$
-
$ 93,179
$ 2,167,031
Accounts receivable
-
-
-
-
-
Accrued interest receivable
56
-
-
54
1,184
Due from other governments
25,773
23,421
2,448
750
127,677
TOTAL ASSETS
$ 115,486
$
23,421
$
2,448
$ 93,983
$ 2,295,892
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$ 6,891
$
15,141
$
2,243
$ 717
$ 7,284
Accrued liabilities
1,364
-
-
10,118
Deposits and other liabilities
-
-
-
-
-
Due to other funds
-
19,229
69,934
-
-
Deferred revenue
-
-
-
-
-
TOTAL LIABILITIES
6,891
35,734
72,177
717
17,402
FUND BALANCES (DEFICITS):
Reserved for:
Encumbrances
-
-
-
-
-
Capital replacement
-
-
-
-
-
Unreserved:
Undesignated
108,595
(12,313)
(69,729)
93,266
2,278,490
TOTAL FUND
BALANCES (DEFICITS)
108,595
(12,313)
(69,729)
93,266
2,278,490
TOTAL LIABILITIES
AND FUND BALANCES
$ 115,486
$
23,421
$
2,448
$ 93,983
$ 2,295,892
See independent auditors' report.
-96-
$ 537,865 $ - $ 91,269 $ 2,998 $ - $ 4,407 $ 266
64 - - - - - -
- - - - 1,700 - -
- - - - - - 187,930
537,929 - 91,269 2,998 1,700 4,407 188,196
15,994 - - -
- - - 18,000 - - -
1,024,695 55,881 (3,797) 18,885 19,078 128,381 (113,196)
1,024,695 55,881 (3,797) 52,879 19,078 128,381 (113,196)
$ 1,562,624 $ 55,881 $ 87,472 $ 55,877 $ 20,778 $ 132,788 $ 75,000
(Continued)
-97-
Lighting
Traffic
and
L.L.M.D.
Air
Transportation
Safety
Landscaping
No.1
Geothermal
Pollution C.D.B.G.
$ 1,263,519
$ 31,508
$ 52,101
$ 51,890
$ 20,767
$ 117,442 $ 75,000
1,265
68
-
184
11
61 -
297,840
24,305
35,371
3,803
-
15,285 -
$ 1,562,624
$ 55,881
$ 87,472
$ 55,877
$ 20,778
$ 132,788 $ 75,000
$ 537,865 $ - $ 91,269 $ 2,998 $ - $ 4,407 $ 266
64 - - - - - -
- - - - 1,700 - -
- - - - - - 187,930
537,929 - 91,269 2,998 1,700 4,407 188,196
15,994 - - -
- - - 18,000 - - -
1,024,695 55,881 (3,797) 18,885 19,078 128,381 (113,196)
1,024,695 55,881 (3,797) 52,879 19,078 128,381 (113,196)
$ 1,562,624 $ 55,881 $ 87,472 $ 55,877 $ 20,778 $ 132,788 $ 75,000
(Continued)
-97-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING BALANCE SHEET
OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
June 30, 2010
See independent auditors' repot.
-98-
Endowment
Cost
Affordable
Trust
Recovery
Developer
Housing
Fund
System
Agreement
in Lieu
ASSETS
Cash and investments
$
35,454
$ 1,268,944
$ 923,769
$ 1,074,977
Accounts receivable
-
9,170
-
-
Accrued interest receivable
9
-
233
630
Due from other governments
-
-
-
-
TOTAL ASSETS
$
35,463
$ 1,278,114
$ 924,002
$ 1,075,607
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$
-
$ 44,510
$ 14,135
$ -
Accrued liabilities
-
-
-
-
Deposits and other liabilities
-
-
-
-
Due to other funds
-
-
-
-
Deferred revenue
-
1,233,604
-
-
TOTAL LIABILITIES
-
1,278,114
14,135
-
FUND BALANCES (DEFICITS):
Reserved for:
Encumbrances
-
-
6,449
-
Capital replacement
-
-
-
-
Unreserved:
Undesignated
35,463
-
903,418
1,075,607
TOTAL FUND
BALANCES (DEFICITS)
35,463
-
909,867
1,075,607
TOTAL LIABILITIES
AND FUND BALANCES
$
35,463
$ 1,278,114
$ 924,002
$ 1,075,607
See independent auditors' repot.
-98-
209,071 -
$ 22 $ 3,104 $ 730,852
- 2,394 13,940
- 1,700
- 20,318 297,411
814,249 - 2,047,853
814,271 25,816 3,091,756
25,545 11,526 268,585
- - 18,000
998,239 69,988 (36,608) 449,011 34,246 (21,168) (37,342)
998,239 69,988 172,463 449,011 34,246 4,377 (25,816) 7,285,675
$ 998,239 $ 69,988 $ 172,463 $ 449,011 $ 34,246 $ 818,648 $ - $ 10,377,431
-99-
Total
Lake
Other
City Hall/
Community
Side
Animal
Camino
Miscellaneous
Special
Public Works
Center
Facilities
Shelter
del Norte
Grants N.P.D.E.S.
Revenue Funds
$ 991,188
$ 65,593 $
166,138
$ 445,968
$ 34,226
$ 679,414 $ -
$ 9,647,765
6,472
4,360
6,232
2,784
-
8,161 -
37,179
579
35
93
259
20
- -
4,741
-
-
-
-
-
131,073 -
687,746
$ 998,239
$ 69,988 $
172,463
$ 449,011
$ 34,246
$ 818,648 $ -
$ 10,377,431
209,071 -
$ 22 $ 3,104 $ 730,852
- 2,394 13,940
- 1,700
- 20,318 297,411
814,249 - 2,047,853
814,271 25,816 3,091,756
25,545 11,526 268,585
- - 18,000
998,239 69,988 (36,608) 449,011 34,246 (21,168) (37,342)
998,239 69,988 172,463 449,011 34,246 4,377 (25,816) 7,285,675
$ 998,239 $ 69,988 $ 172,463 $ 449,011 $ 34,246 $ 818,648 $ - $ 10,377,431
-99-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
For the year ended June 30, 2010
See independent auditors' report.
-100-
Supplemental
Office of
Law
Traffic
Enforcement
L.L.E.B.G.
and
Traffic
Gas
Service
Program
Safety
Offender
Tax
REVENUES:
Licenses, permits and fees
$ -
$ -
$ - $
90,586
$ -
Intergovernmental revenues
100,773
50,066
196,290
-
1,260,027
Fines, forfeitures and penalties
-
-
-
-
-
Investment income
2,146
-
-
1,319
38,550
Special assessments
-
-
-
-
-
Miscellaneous
-
-
-
-
-
TOTAL REVENUES
102,919
50,066
196,290
91,905
1,298,577
EXPENDITURES:
Current:
General government
-
27,331
1,525
-
519,226
Public services
100,270
31,732
211,634
20,171
261,466
Capital outlay
-
14,682
-
-
3,201
TOTAL EXPENDITURES
100,270
73,745
213,159
20,171
783,893
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
2,649
(23,679)
(16,869)
71,734
514,684
OTHER FINANCING SOURCES (USES):
Transfers in
-
-
-
-
-
Transfers out
-
-
-
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
-
-
-
-
-
NET CHANGE IN FUND BALANCES
2,649
(23,679)
(16,869)
71,734
514,684
FUND BALANCES (DEFICITS) -
BEGINNING OF YEAR
105,946
11,366
(52,860)
21,532
1,763,806
FUND BALANCES (DEFICITS) -
END OF YEAR
$ 108,595
$ (12,313)
$ (69,729) $
93,266
$ 2,278,490
See independent auditors' report.
-100-
Lighting
Traffic and L.L.M.D.
Transportation Safety Landscaping No.1
2,850,661 - - -
- 301,129 - -
27,691 1,525 - 5,035
- - 1,366,197 212,582
100 - 16,542 -
2,878,452 302,654 1,382,739 217,617
Air
Geothermal Pollution C.D.B.G.
210,802
436 3,562 -
56,916 -
436 60,478 210,802
7,439
-
900
-
-
1,775
66,053
1,437,759
305,751
1,319,992
180,888
-
10,359
48,708
264,239
-
-
-
-
122,593
87,992
1,709,437
305,751
1,320,892
180,888
-
134,727
202,753
1,169,015
(3,097)
61,847
36,729
436
(74,249)
8,049
-
-
597,018
-
-
-
-
(500,292)
-
-
(182,018)
-
-
-
(500,292)
-
597,018
(182,018)
-
-
-
668,723
(3,097)
658,865
(145,289)
436
(74,249)
8,049
355,972
58,978
(662,662)
198,168
18,642
202,630
(121,245)
$ 1,024,695
$ 55,881
$ (3,797)
$ 52,879
$ 19,078
$ 128,381
$ (113,196)
(Continued)
-101-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS
(CONTINUED)
For the year ended June 30, 2010
REVENUES:
Licenses, permits and fees
Intergovernmental revenues
Fines, forfeitures and penalties
Investment income
Special assessments
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public services
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCES
FUND BALANCES (DEFICITS) -
BEGINNING OF YEAR
FUND BALANCES (DEFICITS) -
END OF YEAR
See independent auditors' report
Endowment Cost Affordable
Trust Recovery Developer Housing
Fund System Agreement in Lieu
$ - $ 185,520 $ 9,708
572 - 28,633 22,425
1,325,000 -
572 - 1,539,153 32,133
- - 27,712 -
2,100 - 2,722,737 -
- - 525 -
2,100 - 2,750,974 -
(1,528) - (1,211,821) 32,133
(1,528) - (1,211,821) 32,133
36,991 - 2,121,688 1,043,474
$ 35,463 $ - $ 909,867 $ 1,075,607
0I10AP
121 - - -
4,477 112,600 172,979 -
4,598 112,600 172,979 -
73,260 (71,285) (112,234) 33,847
- 267
46,805
699,154
- 118,062
50,648
7,112,333
Total
67,140
569,879
Lake
164,593
8,381,366
718 4,377
Other
City Hall/
Community
Side
Animal
Camino
Miscellaneous
Special
Public Works
Center
Facilities
Shelter
del Norte
Grants N.P.D.E.S.
Revenue Funds
$ 57,439
$ 38,695
$ 55,309
$ 24,708
$ -
$ - $ 138,777
$ 600,742
-
-
-
-
-
71,873 -
4,740,492
-
-
-
-
-
- -
301,129
20,419
2,620
5,436
9,139
718
- -
170,226
-
-
-
-
-
- -
1,578,779
-
-
-
-
-
60,340 -
1,458,898
77,858
41,315
60,745
33,847
718
132,213 138,777
8,850,266
121 - - -
4,477 112,600 172,979 -
4,598 112,600 172,979 -
73,260 (71,285) (112,234) 33,847
- 267
46,805
699,154
- 118,062
50,648
7,112,333
- 9,507
67,140
569,879
- 127,836
164,593
8,381,366
718 4,377
(25,816)
468,900
597,018
(682,310)
- - - - - - - (85,292)
73,260 (71,285) (112,234) 33,847 718 4,377 (25,816) 383,608
924,979
141,273
284,697
415,164
33,528
- - 6,902,067
$ 998,239
$ 69,988
$ 172,463
$ 449,011 $
34,246 $
4,377 $ (25,816) $ 7,285,675
-103-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
SUPPLEMENTAL LAW ENFORCEMENT SERVICE SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Intergovernmental revenues
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public services
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 100,000 $ 100,000 $ 100,773 $ 773
- 2,146 2,146
100,000 100,000 102,919 2,919
100,000 100,000 100,270 (270)
- - 2,649 2,649
105,946 105,946 105,946 -
$ 105,946 $ 105,946 $ 108,595 $ 2,649
-104-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
L.L.E.B.G. PROGRAM SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Intergovernmental revenues
EXPENDITURES:
Current:
General government
Public services
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 70,475 $ 70,475
Variance with
Final Budget
Positive
Actual (Negative)
$ 50,066 $ (20,409)
31,954
31,954
27,331
4,623
38,475
38,475
31,732
6,743
-
-
14,682
(14,682)
70,429
70,429
73,745
(3,316)
46
46
(23,679)
(23,725)
11,366
11,366
11,366
-
$ 11,412 $
11,412
$ (12,313) $
(23,725)
N[IRE
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
OFFICE OF TRAFFIC AND SAFETY SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Intergovernmental revenues
EXPENDITURES:
Current:
General government
Public services
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
Variance with
Final Budget
Positive
Actual (Negative)
$ 196,290 $ (12,335)
- - 1,525 (1,525)
208,625 208,625 211,634 (3,009)
208,625 208,625 213,159 (4,534)
(16,869) (16,869)
(52,860) (52,860) (52,860) -
$ (52,860) $ (52,860) $ (69,729) $ (16,869)
-106-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC OFFENDER SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Licenses, permits and fees
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public services
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
-107-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
$ 28,000
$ 28,000
$ 90,586
$ 62,586
-
-
1,319
1,319
28,000
28,000
91,905
63,905
28,000
28,000
20,171
7,829
-
-
71,734
71,734
21,532
21,532
21,532
-
$ 21,532
$ 21,532
$ 93,266
$ 71,734
-107-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REVENUES:
Intergovernmental revenues
Investment income
1C911KI 321TWWRI
EXPENDITURES:
Current:
General government
Public services
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
For the year ended June 30, 2010
509,056 509,056 519,226 (10,170)
155,602 155,602 261,466 (105,864)
10,000 10,000 3,201 6,799
674,658 674,658 783,893 (109,235)
(12,658) (12,658) 514,684 527,342
1,763,806 1,763,806 1,763,806 -
$ 1,751,148 $ 1,751,148 $ 2,278,490 $ 527,342
-108-
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
$ 662,000 $ 662,000
$ 1,260,027
$ 598,027
- -
38,550
38,550
662,000 662,000
1,298,577
636,577
509,056 509,056 519,226 (10,170)
155,602 155,602 261,466 (105,864)
10,000 10,000 3,201 6,799
674,658 674,658 783,893 (109,235)
(12,658) (12,658) 514,684 527,342
1,763,806 1,763,806 1,763,806 -
$ 1,751,148 $ 1,751,148 $ 2,278,490 $ 527,342
-108-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRANSPORTATION SPECIAL REVENUE FUND
For the year ended June 30, 2010
See independent auditors' report.
-109-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenues
$ 1,610,881
$ 1,610,881
$ 2,850,661
$ 1,239,780
Investment income
-
-
27,691
27,691
Miscellaneous
2,000,000
2,000,000
100
(1,999,900)
TOTAL REVENUES
3,610,881
3,610,881
2,878,452
(732,429)
EXPENDITURES:
Current:
General government
73,118
73,118
7,439
65,679
Public services
211,991
211,991
1,437,759
(1,225,768)
Capital outlay
1,616,881
1,616,881
264,239
1,352,642
TOTAL EXPENDITURES
1,901,990
1,901,990
1,709,437
192,553
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
1,708,891
1,708,891
1,169,015
(539,876)
OTHER FINANCING USES:
Transfers out
-
-
(500,292)
(500,292)
NET CHANGE IN FUND BALANCE
1,708,891
1,708,891
668,723
(1,040,168)
FUND BALANCE - BEGINNING OF YEAR
355,972
355,972
355,972
-
FUND BALANCE - END OF YEAR
$ 2,064,863
$ 2,064,863
$ 1,024,695
$ (1,040,168)
See independent auditors' report.
-109-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC SAFETY SPECIAL REVENUE FUND
For the year ended June 30, 2010
See independent auditors' report.
-110-
Variance with
Final Budget
Budgeted Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Fines, forfeitures and penalties
$ 330,000
$ 330,000
$ 301,129
$ (28,871)
Investment income
-
-
1,525
1,525
TOTAL REVENUES
330,000
330,000
302,654
(27,346)
EXPENDITURES:
Current:
General government
66,924
66,924
-
66,924
Public services
263,929
263,929
305,751
(41,822)
TOTAL EXPENDITURES
330,853
330,853
305,751
25,102
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(853)
(853)
(3,097)
(2,244)
FUND BALANCE - BEGINNING OF YEAR
58,978
58,978
58,978
-
FUND BALANCE - END OF YEAR
$ 58,125
$ 58,125
$ 55,881
$ (2,244)
See independent auditors' report.
-110-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LIGHTING AND LANDSCAPING SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Special assessments
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public services
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES:
Transfers in
NET CHANGE IN FUND BALANCE
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
- - 900 (900)
1,313,200 1,313,200 1,319,992 (6,792)
1,313,200 1,313,200 1,320,892 (7,692)
(700) (700) 61,847 62,547
- 597,018 597,018
(700) (700) 658,865 659,565
(662,662) (662,662) (662,662) -
$ (663,362) $ (663,362) $ (3,797) $ 659,565
- 111 -
Variance with
Final Budget
Budgeted Amounts
Positive
Original Final
Actual
(Negative)
$ 1,300,000 $ 1,300,000
$ 1,366,197
$ 66,197
12,500 12,500
16,542
4,042
1,312,500 1,312,500
1,382,739
70,239
- - 900 (900)
1,313,200 1,313,200 1,319,992 (6,792)
1,313,200 1,313,200 1,320,892 (7,692)
(700) (700) 61,847 62,547
- 597,018 597,018
(700) (700) 658,865 659,565
(662,662) (662,662) (662,662) -
$ (663,362) $ (663,362) $ (3,797) $ 659,565
- 111 -
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
L.L.M.D. NO. 1 SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Investment income
Special assessments
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Current:
Public services
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING USES:
Transfers out
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original
Final
$ 1,000
$ 1,000
202,000
202,000
2,000
2,000
$ 4,035
205,000
205,000
34,000 34,000
180,888 (9,888)
36,729 2,729
- - (182,018) (182,018)
34,000 34,000 (145,289) (179,289)
198,168 198,168 198,168 -
$ 232,168 $ 232,168 $ 52,879 $ (179,289)
-112-
Variance with
Final Budget
Positive
Actual
(Negative)
$ 5,035
$ 4,035
212,582
10,582
-
(2,000)
217,617
12,617
180,888 (9,888)
36,729 2,729
- - (182,018) (182,018)
34,000 34,000 (145,289) (179,289)
198,168 198,168 198,168 -
$ 232,168 $ 232,168 $ 52,879 $ (179,289)
-112-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
AIR POLLUTION SPECIAL REVENUE FUND
REVENUES:
Investment income
NEscellanoues
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public services
Capital outlay
TOTAL EXPENDITURES
For the year ended June 30, 2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ - $ - $ 3,562 $ 3,562
56,916 56,916
60,478 60,478
1,775 (1,775)
- - 10,359 (10,359)
306,637 306,637 122,593 184,044
306,637 306,637 134,727 171,910
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (306,637) (306,637) (74,249) 232,388
FUND BALANCE - BEGINNING OF YEAR 202,630 202,630 202,630 -
FUND BALANCE - END OF YEAR $ (104,007) $ (104,007) $ 128,381 $ 232,388
See independent auditors' report.
-113-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
C.D.B.G. SPECIAL REVENUE FUND
For the year ended June 30, 2010
REVENUES:
Intergovernmental revenues
EXPENDITURES:
Current:
General government
Public services
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
$ 215,321 $ 215,321
Variance with
Final Budget
Positive
Actual (Negative)
$ 210,802 $ (4,519)
87,586
87,586
66,053
21,533
18,018
18,018
48,708
(30,690)
300,324
300,324
87,992
212,332
405,928
405,928
202,753
203,175
(190,607)
(190,607)
8,049
198,656
(121,245) (121,245) (121,245) -
$ (311,852) $ (311,852) $ (113,196) $ 198,656
-114-
REVENUES:
Licenses, permits and fees
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public services
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LAKESIDE FACILITIES SPECIAL REVENUE FUND
For the year ended June 30, 2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ - $ - $ 55,309 $ 55,309
5,436 5,436
60,745 60,745
209,071 209,071 172,979 36,092
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (209,071) (209,071) (112,234) 96,837
FUND BALANCE - BEGINNING OF YEAR 284,697 284,697 284,697 -
FUND BALANCE - END OF YEAR $ 75,626 $ 75,626 $ 172,463 $ 96,837
See independent auditors' report.
MINE
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
104Na913M11 y=yMa411ZIM 1ill 1 /1:)IIIL:1DI
For the year ended June 30, 2010
REVENUES:
Licenses, permits and fees
EXPENDITURES:
Current:
General government
Public services
Capital outlay
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
FUND BALANCE - BEGINNING OF YEAR
FUND BALANCE (DEFICIT) - END OF YEAR
See independent auditors' report.
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ 158,000 $ 158,000 $ 138,777 $ (19,223)
89,559
89,559
46,805
42,754
30,000
30,000
50,648
(20,648)
65,188
65,188
67,140
(1,952)
184,747
184,747
164,593
20,154
(26,747)
(26,747)
(25,816)
931
$ (26,747) $ (26,747) $ (25,816) $ 931
-116-
CITY OF LAKE ELSINORE, CALIFORNIA
OTHER CAPITAL PROJECTS FUNDS
June 30, 2010
OTHER FUNDS:
Miscellaneous General Project - to account for miscellaneous general projects of the City.
Park Improvement and Development - to account for the improvement and development of parks that
are financed by developer fees.
Street Capital Improvements - to account for general capital improvements of streets within the City
that are financed by development fees.
Storm Drain - to account for the capital improvements of upgrading the storm drains within the City.
Library Capital Improvement - to account for general capital improvements necessary for the
maintenance of the Public Library.
Signalization Improvement - to account for general improvements and repairs to signal lights within
the City.
Traffic Improvements - to account for projects related to traffic improvements.
City Fire Protection - to account for the construction of fire facilities at the Cottonwood Canyon
Development.
Public Improvements - to account for special designated improvements to City property.
Fire Station - to account for deposits and expenditures related to the Fire Station construction.
TUMF - to account for multi jurisdictional development impact fee paid for by new development to
provide the transportation infrastructure necessary to accommodate new development.
Assessment Districts - to account for transactions related to proceeds from assessment bonds and other
resources used to acquire and construct certain capital facilities.
Redevelopment Agency - to account for financial resources to be used for the acquisition or
construction of redevelopment projects and administrative expenses within the Rancho Laguna I,
Rancho Laguna II and Rancho Laguna II project areas.
- 117 -
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING BALANCE SHEET
OTHER CAPITAL PROJECTS FUNDS
June 30, 2010
See independent auditors' report.
- 118-
Park
Miscellaneous
Improvement
Street
Library
General
and
Capital
Storm
Capital
Project
Development
Improvements
Drain
Improvement
ASSETS
Cash and investments
$
261,567
$ 149,219
$
13,352
$
4,939,722
$
1,361,488
Cash and investments with fiscal agents
-
-
-
-
-
Accounts receivable
-
12,800
-
17,801
1,200
Accrued interest receivable
-
87
8
2,957
796
Due from other funds
45,595
-
-
-
-
Due from other governments
-
-
-
-
Land held for resale
-
-
-
-
-
TOTAL ASSETS
$
307,162
$ 162,106
$
13,360
$
4,960,480
$
1,363,484
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts payable
$
6,362
$ -
$
-
$
-
$
13,503
Due to other funds
-
-
-
-
Deferred revenue
-
-
-
TOTAL LIABILITIES
6,362
-
-
13,503
FUND BALANCES (DEFICIT):
Reserved for:
Encumbrances
33,533
-
-
Specific projects
-
-
-
-
Land held for resale
-
-
-
-
-
Unreserved:
Undesignated
267,267
162,106
13,360
4,960,480
1,349,981
TOTAL FUND
BALANCES (DEFICIT)
300,800
162,106
13,360
4,960,480
1,349,981
TOTAL LIABILITIES
AND FUND BALANCES
$
307,162
$ 162,106
$
13,360
$
4,960,480
$
1,363,484
See independent auditors' report.
- 118-
$ - $ 39,397 $ - $ - $ - $ 76 $ - $ 302,625 $ 361,963
237,703 4,702,219 4,939,922
735,441 - 735,441
39,397 - - - 973,220 - 5,004,844 6,037,326
- - - - 402,792 - - 436,325
- 1,412,476 - 1,412,476
- 6,088,480 6,088,480
146,158
3,003,430
169,281
584,117
17
(557,671) -
Total
5,497,137
City
146,158
Other
Signalization
Traffic
Fire
Public Fire
Assessment
Redevelopment
Capital
Improvement
Improvements
Protection
Improvements Station TUMF
Districts
Agency
Projects Funds
$ 146,072
$ 3,030,230
$ 162,795
$ 583,781 $ 17 $ -
$ 135,982
$ 321,584
$ 11,105,809
-
-
-
- -
1,276,415
-
1,276,415
-
10,952
6,008
- -
-
4,700
53,461
86
1,645
478
336 - -
79
-
6,472
-
-
-
-
-
-
45,595
-
-
-
- - 818,341
-
77,171
895,512
-
-
- - -
-
6,088,480
6,088,480
$ 146,158
$ 3,042,827
$ 169,281
$ 584,117 $ 17 $ 818,341
$ 1,412,476
$ 6,491,935
$ 19,471,744
$ - $ 39,397 $ - $ - $ - $ 76 $ - $ 302,625 $ 361,963
237,703 4,702,219 4,939,922
735,441 - 735,441
39,397 - - - 973,220 - 5,004,844 6,037,326
- - - - 402,792 - - 436,325
- 1,412,476 - 1,412,476
- 6,088,480 6,088,480
146,158
3,003,430
169,281
584,117
17
(557,671) -
(4,601,389)
5,497,137
146,158
3,003,430
169,281
584,117
17
(154,879) 1,412,476
1,487,091
13,434,418
$ 146,158 $ 3,042,827 $ 169,281 $ 584,117 $ 17 $ 818,341 $ 1,412,476 $ 6,491,935 $ 19,471,744
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - OTHER CAPITAL PROJECTS FUNDS
For the year ended June 30, 2010
FUND BALANCES (DEFICIT) -
END OF YEAR $ 300,800 $ 162,106 $ 13,360 $ 4,960,480 $ 1,349,981
See independent auditors' report.
-120-
Park
Miscellaneous
Improvement
Street
Library
General
and
Capital
Storm
Capital
Project
Development
Improvements
Drain
Improvement
REVENUES:
Licenses, permits and fees
$ -
$ 123,200
$ -
$ 50,971
$ 31,050
Intergovernmental revenue
62,631
-
-
-
Investment income
-
15,148
280
116,026
28,333
Miscellaneous
166,727
-
-
-
-
TOTAL REVENUES
229,358
138,348
280
166,997
59,383
EXPENDITURES:
Current:
General government
5,004
-
-
-
-
Public services
911,544
346
-
771,471
20,579
Capital outlay
-
-
-
-
-
TOTAL EXPENDITURES
916,548
346
-
771,471
20,579
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(687,190)
138,002
280
(604,474)
38,804
OTHER FINANCING SOURCES (USES):
Transfers in
1,747,678
-
-
-
-
Transfers out
-
(24,088)
-
-
TOTAL OTHER FINANCING
SOURCES (USES)
1,747,678
(24,088)
-
-
NET CHANGE IN
FUND BALANCES
1,060,488
113,914
280
(604,474)
38,804
FUND BALANCES (DEFICIT) -
BEGINNING OF YEAR, AS RESTATED
(759,688)
48,192
13,080
5,564,954
1,311,177
FUND BALANCES (DEFICIT) -
END OF YEAR $ 300,800 $ 162,106 $ 13,360 $ 4,960,480 $ 1,349,981
See independent auditors' report.
-120-
MINE
1,916
-
-
- -
362,982
Total
369,902
City
-
-
- 1,479,210
Other
Signalization
Traffic
Fire
Public Fire
Assessment
Redevelopment
Capital
Improvement
Improvements
Protection
Improvements Station
TUMF Districts
Agency
Projects Funds
-
$ -
$ 32,856
$ 55,121
$ 30,553 $ -
$ $ -
$ -
$ 323,751
_
_
-
_ -
2,324,331 -
2,386,962
3,065
66,269
16,764
11,892 -
- 3,644
254
261,675
-
-
-
- -
- 120
333,544
500,391
3,065
99,125
71,885
42,445 -
2,324,331 3,764
333,798
3,472,779
MINE
1,916
-
-
- -
362,982
-
369,902
599,396
-
-
- 1,479,210
-
-
3,782,546
-
660,000
-
- -
816,170
1,318,179
2,794,349
-
601,312
660,000
-
- 1,479,210
1,179,152
1,318,179
6,946,797
3,065
(502,187)
(588,115)
42,445
- 845,121
(1,175,388)
(984,381)
(3,474,018)
-
-
-
-
- -
-
2,135,998
3,883,676
-
-
- (1,000,000)
-
(135,998)
(1,160,086)
-
-
-
- (1,000,000)
-
2,000,000
2,723,590
3,065
(502,187)
(588,115)
42,445
- (154,879)
(1,175,388)
1,015,619
(750,428)
143,093
3,505,617
757,396
541,672
17 -
2,587,864
471,472
14,184,846
$ 146,158
$ 3,003,430
$ 169,281
$ 584,117 $
17 $ (154,879)
$ 1,412,476
$ 1,487,091
$ 13,434,418
MINE
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
MISCELLANEOUS GENERAL PROJECT CAPITAL PROJECTS FUND
For the year ended June 30, 2010
See independent auditors' report.
-122-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental
$ 5,190,269
$ 5,190,269
$ 62,631
$ (5,127,638)
Miscellaneous
-
-
166,727
166,727
TOTALREVENUES
5,190,269
5,190,269
229,358
(4,960,911)
EXPENDITURES:
Current:
General government
-
-
5,004
(5,004)
Public services
3,617,461
3,617,461
911,544
2,705,917
Capital outlay
5,656,169
5,656,169
-
5,656,169
TOTAL EXPENDITURES
9,273,630
9,273,630
916,548
8,357,082
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(4,083,361)
(4,083,361)
(687,190)
3,396,171
OTHER FINANCING SOURCES:
Transfers in
140,103
140,103
1,747,678
1,607,575
NET CHANGE IN FUND BALANCE
(3,943,258)
(3,943,258)
1,060,488
5,003,746
FUND BALANCE (DEFICIT) -
BEGINNING OF YEAR, AS RESTATED
(759,688)
(759,688)
(759,688)
-
FUND BALANCE - END OF YEAR
$ (4,702,946)
$ (4,702,946)
$ 300,800
$ 5,003,746
See independent auditors' report.
-122-
REVENUES:
Licenses, permits and fees
Investment income
TOTAL REVENUES
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
STORM DRAIN CAPITAL PROJECTS FUND
For the year ended June 30, 2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ - $ - $ 50,971 $ 50,971
116,026 116,026
166,997 166,997
EXPENDITURES:
Current:
Public services 75,915 75,915 771,471 (695,556)
Capital outlay 65,000 65,000 - 65,000
TOTAL EXPENDITURES 140,915 140,915 771,471 (630,556)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (140,915) (140,915) (604,474) (463,559)
FUND BALANCE - BEGINNING OF YEAR 5,564,954 5,564,954 5,564,954 -
FUND BALANCE - END OF YEAR $ 5,424,039 $ 5,424,039 $ 4,960,480 $ (463,559)
See independent auditors' report.
-123-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
LIBRARY CAPITAL rOPROVEMENTS CAPITAL PROJECTS FUND
REVENUES:
Licenses, permits and fees
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
Public services
Capital outlay
TOTAL EXPENDITURES
For the year ended June 30, 2010
Variance with
Final Budget
Budgeted Amounts Positive
Original Final Actual (Negative)
$ - $ - $ 31,050 $ 31,050
28,333 28,333
59,383 59,383
6,825
6,825
20,579 (13,754)
50,000
50,000
- 50,000
56,825
56,825
20,579 36,246
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (56,825) (56,825) 38,804 95,629
FUND BALANCE - BEGINNING OF YEAR 1,311,177 1,311,177 1,311,177 -
FUND BALANCE - END OF YEAR $ 1,254,352 $ 1,254,352 $ 1,349,981 $ 95,629
See independent auditors' report.
-124-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TRAFFIC IMPROVEMENTS CAPITAL PROJECTS FUND
For the year ended June 30, 2010
REVENUES:
Licenses, permits and fees
Investment income
TOTAL REVENUES
EXPENDITURES:
Current:
General government
Public services
TOTAL EXPENDITURES
Budgeted Amounts
Original Final
Actual
$ 32,856
66,269
99,125
Variance with
Final Budget
Positive
(Negative)
$ 32,856
66,269
99,125
- - 1,916 (1,916)
2,158 2,158 599,396 (597,238)
2,158 2,158 601,312 (599,154)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (2,158) (2,158) (502,187) (500,029)
FUND BALANCE - BEGINNING OF YEAR 3,505,617 3,505,617 3,505,617 -
FUND BALANCE - END OF YEAR $ 3,503,459 $ 3,503,459 $ 3,003,430 $ (500,029)
See independent auditors' report.
-125-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
TUMF CAPITAL PROJECTS FUND
For the year ended June 30, 2010
See independent auditors' report.
-126-
Variance with
Final Budget
Budgeted
Amounts
Positive
Original
Final
Actual
(Negative)
REVENUES:
Intergovernmental revenue
$ -
$ -
$ 2,324,331
$ 2,324,331
Investment income
1,423,000
1,423,000
-
(1,423,000)
TOTAL REVENUES
1,423,000
1,423,000
2,324,331
901,331
EXPENDITURES:
Current:
Public services
1,423,000
1,423,000
1,479,210
(56,210)
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
-
-
845,121
845,121
OTHER FINANCING USES:
Transfers out
-
-
(1,000,000)
(1,000,000)
NET CHANGE IN FUND BALANCE
-
-
(154,879)
(154,879)
FUND BALANCE - BEGINNING OF YEAR
-
-
-
-
FUND BALANCE (DEFICIT) - END OF YEAR
$ -
$ -
$ (154,879)
$ (154,879)
See independent auditors' report.
-126-
CITY OF LAKE ELSINORE, CALIFORNIA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCE - BUDGET AND ACTUAL
REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND
For the year ended June 30, 2010
REVENUES:
Investment income
Miscellaneous
TOTAL REVENUES
EXPENDITURES:
Capital outlay
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES):
Transfers in
Transfers out
TOTAL OTHER FINANCING
SOURCES (USES)
NET CHANGE IN FUND BALANCE
FUND BALANCE - BEGINNING OF YEAR,
AS RESTATED
FUND BALANCE - END OF YEAR
See independent auditors' report.
Budgeted Amounts
Original Final
Variance with
Final Budget
Positive
Actual (Negative)
254 $ 254
333,544 333,544
333,798 333,798
1,885,367
1,885,367
1,318,179
567,188
(1,885,367)
(1,885,367)
(984,381)
900,986
2,643,533
2,643,533
2,135,998
(507,535)
-
-
(135,998)
(135,998)
2,643,533
2,643,533
2,000,000
(643,533)
758,166
758,166
1,015,619
257,453
471,472
471,472
471,472
-
$ 1,229,638
$ 1,229,638
$ 1,487,091
$ 257,453
-127-
THIS PAGE INTENTIONALLY LEFT BLANK
-128-
CITY OF LAKE ELSINORE, CALIFORNIA
AGENCY FUNDS
June 30, 2010
Kangaroo Rat - to account for receipts of Kangaroo Rat fees.
Developer Deposit Trust - to account for receipts of deposits paid by developers.
Assessment Districts - to account for receipts of special assessments and taxes that will be used to pay
interest and principal on the bonds.
Lake Maintenance - to account for receipts made by Elsinore Valley Municipal Water District and City
to jointly fund the purchase of water to keep the lake level stabilized.
Destratification Equipment Replacement Fund - to account for receipts made by Elsinore Valley
Municipal Water District, Riverside County and the City to replace equipment for the axial flow pump
destratification system.
-129-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF ASSETS AND LIABILITIES
AGENCY FUNDS
June 30, 2010
TOTAL LIABILITIES $ 4,198 $1,074,831 $ 39,649,200 $ 1,731,273 $ 112,425 $ 42,571,927
See independent auditors' report.
-130-
Developer
Destratification
Total
Kangaroo
Deposit
Assessment
Lake
Equipment
Agency
Rat
Trust
Districts
Maintenance
Replacement
Funds
ASSETS
Cash and investments
$ 4,198
$1,074,831
$ 2,099,908
$ -
$ 112,425
$ 3,291,362
Cash and investments
with fiscal agents
-
-
35,966,337
1,731,273
-
37,697,610
Accounts receivable
-
-
24,598
-
-
24,598
Accrued interest receivable
-
-
99,095
-
-
99,095
Due from other governments
-
-
1,459,262
-
-
1,459,262
TOTAL ASSETS
$ 4,198
$1,074,831
$ 39,649,200
$ 1,731,273
$ 112,425
$ 42,571,927
LIABILITIES
Accounts payable
$ 4,198
$ -
$ 16,373
$ -
$ 289
$ 20,860
Deposits and other liabilities
-
1,074,831
65,000
1,731,273
112,136
2,983,240
Due to other governments
-
-
4,685,615
-
-
4,685,615
Due to bondholders
-
-
34,882,212
-
-
34,882,212
TOTAL LIABILITIES $ 4,198 $1,074,831 $ 39,649,200 $ 1,731,273 $ 112,425 $ 42,571,927
See independent auditors' report.
-130-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
For the year ended June 30, 2010
Balance Balance
July 1, June 30,
KANGAROO RAT
ASSETS:
Cash and investments $ 87 $ 4,111 $ - $ 4,198
LIABILITIES:
Accounts payable $ - $ 4,198 $ - $ 4,198
Deposits and other liabilities 87 - 87 -
TOTAL LIABILITIES $ 87 $ 4,198 $ 87 $ 4,198
DEVELOPER DEPOSIT TRUST
ASSETS:
Cash and investments $ 967,155 $ 107,676 $ - $ 1,074,831
LIABILITIES:
Accounts payable
$ 3,541
$
-
$
3,541 $ -
Deposits and other liabilities
963,440
- 4,685,615
111,391
30,936,825 3,945,387
- 1,074,831
Due to other governments
174
81,481 $ 39,649,200
-
174 -
TOTAL LIABILITIES
$ 967,155
$
111,391
$
3,715 $ 1,074,831
ASSESSMENT DISTRICTS
ASSETS:
Cash and investments
$ 984,189
$
1,115,719
$
- $ 2,099,908
Cash and investments with fiscal agents
32,794,652
3,171,685
- 35,966,337
Accounts receivable
3,770
20,828
- 24,598
Accrued interest receivable
6,443
92,652
- 99,095
Due from other governments
917,306
541,956
- 1,459,262
TOTAL ASSETS
$ 34,706,360
$
4,942,840
$
- $ 39,649,200
LIABILITIES:
Accounts payable
$ 97,854 $ - $
81,481 $ 16,373
Deposits and other liabilities
65,000 -
- 65,000
Due to other governments
3,606,681 1,078,934
- 4,685,615
Due to bondholders
30,936,825 3,945,387
- 34,882,212
TOTAL LIABILITIES
$ 34,706,360 $ 5,024,321 $
81,481 $ 39,649,200
(Continued)
See independent auditors' report.
-131-
CITY OF LAKE ELSINORE, CALIFORNIA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
(CONTINUED)
For the year ended June 30, 2010
Balance Balance
July 1, June 30,
LAKE MAINTENANCE
ASSETS:
Cash and investments with fiscal agents $ 3,268,062 $ - $ 1,536,789 $ 1,731,273
LIABILITIES:
Deposits and other liabilities $ 3,268,062 $ - $ 1,536,789 $ 1,731,273
DESTRATIFICATION EQUIPMENT
REPLACEMENT
ASSETS:
Cash and investments $ 100,000 $ 12,425 $ - $ 112,425
LIABILITIES:
Accounts payable
$ -
$
289
$
-
$ 289
Deposits and other liabilities
100,000
12,136
-
112,136
TOTAL LIABILITIES
$ 100,000
$
12,425
$
-
$ 112,425
TOTAL - ALL AGENCY FUNDS
ASSETS:
Cash and investments
$ 2,051,431
$
1,239,931
$
-
$ 3,291,362
Cash and investments with fiscal agents
36,062,714
3,171,685
1,536,789
37,697,610
Accounts receivable
3,770
20,828
-
24,598
Accrued interest receivable
6,443
92,652
-
99,095
Due from other governments
917,306
541,956
-
1,459,262
TOTAL ASSETS
$ 39,041,664
$
5,067,052
$
1,536,789
$ 42,571,927
LIABILITIES:
Accounts payable
$ 101,395
$
4,487
$
85,022
$ 20,860
Deposits and other liabilities
4,396,589
123,527
1,536,876
2,983,240
Due to other governments
3,606,855
1,078,934
174
4,685,615
Due to bondholders
30,936,825
3,945,387
-
34,882,212
TOTAL LIABILITIES
$ 39,041,664
$
5,152,335
$
1,622,072
$ 42,571,927
See independent auditors' report.
-132-
CAPITAL ASSETS USED IN THE
OPERATION OF GOVERNMENTAL FUNDS
-133-
CITY OF LAKE ELSINORE, CALIFORNIA
CAPITAL ASSETS USED IN OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY SOURCE
June 30, 2010
GOVERNMENTAL FUNDS CAPITAL ASSETS:
Land $ 5,352,814
Building and structures 23,113,642
Improvements other than buildings 8,190,430
Machinery and equipment 3,341,502
Furniture and fixtures 619,814
Automotive 2,002,003
Infrastructure 174,866,595
Construction in progress 14,311,848
TOTAL GOVERNMENTAL FUNDS CAPITAL ASSETS $ 231,798,648
INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE:
General Fund
$ 109,273,668
Redevelopment Agency Special Revenue Fund
17,795,119
Supplemental Law Enforcement Service Special Revenue Fund
102,366
L.L.E.B.G. Special Revenue Fund
14,682
Office of Traffic and Safety Special Revenue Fund
672,037
Traffic Offender Special Revenue Fund
149,633
Gas Tax Special Revenue Fund
1,991,742
Transportation Special Revenue Fund
2,587,063
Traffic Safety Special Revenue Fund
5,959
Lighting and Landscaping Special Revenue Fund
57,059
Air Pollution Special Revenue Fund
220,177
C.D.B.G. Special Revenue Fund
1,575,676
Developer Agreement Special Revenue Fund
1,804,976
City Hall/Public Works Special Revenue Fund
148,353
Lakeside Facilities Special Revenue Fund
531,963
Miscellaneous Grants Special Revenue Fund
18,534
N.P.D.E.S. Special Revenue Fund
65,537
Assessment Districts Capital Projects Fund
59,171,964
Miscellaneous General Projects Capital Projects Fund
26,458,819
Park Improvement and Development Capital Projects Fund
1,263,147
Street Capital Improvements Projects Fund
231,454
Storm Drain Capital Projects Fund
133
Signalization Improvement Capital Projects Fund
224,718
Traffic Improvements Capital Projects Fund
4,571,000
City Fire Protection Capital Projects Fund
782,902
Public Improvements Capital Projects Fund
393,064
Fire Station Capital Projects Fund
170,990
TUNE Capital Projects Fund
1,515,913
TOTAL INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE $ 231,798,648
See independent auditors' report.
-134-
STATISTICAL SECTION
DESCRIPTION OF STATISTICAL SECTION CONTENTS
June 30, 2010
This part of the City of Lake Elsinore's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information say about the government's overall financial
health.
Contents:
Pages
Financial Trends theses schedules contain trend information to help the reader
understand how the City's financial performance and well -being have changed
over time. 136- 145
Revenue Capacity these schedules contain information to help the reader
assess the City's most significant local revenue source, the property tax. 147-151
Debt Capacity these schedules present information to help the reader assess
the affordability of the City's current levels of outstanding debt and the City's
ability to issue additional debt in the future. 152-158
Demographic and Economic Information these schedules offer demographic
and economic indicators to help the reader understand the environment within
which the City's financial activities take place. 159-160
Operating; Information these schedules contain service and infrastructure data
to help the reader understand how the information in the City's financial
report relates to the services the City provides and the activities it performs. 161-164
-135-
Governmental activities:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total governmental activities net assets:
CITY OF LAKE ELSINORE
NET ASSETS BY COMPONENT
Last Eight Fiscal Years
(accrual bases of accounting)
Fiscal Year
2003 2004 2005 2006
$ 78,779,255 $ 76,438,068 $ 79,194,299 $ 86,605,543
64,336,191 64,509,263 76,616,021 135,197,478
(111,687,867) (107,107,310) (103,129,508) (93,977,441)
$ 31,427,579 $ 33,840,021 $ 52,680,812 $ 127,825,580
GASB 34 was implemented for the fiscal year ended June 30, 2003.
Information prior to implementation of GASB 34 is not available.
Source: City Finance Department
- 136-
Fisal Year
2007 2008 2009 2010
$ 97,369,896 $ 125,539,928 $ 141,550,858 $ 142,968,348
173,307,658 1 51,937,522 122,099,858 110,984,917
(92,504,071) (96,240,481) (96,792,528) (93,859,128)
$ 178,173,483 $ 181,236,969 $ 166,858,188 $ 160,094,137
-137-
CITY OF LAKE ELSINORE
CHANGES IN NET ASSETS
EXPENSES AND PROGRAM REVENUES
Expenses:
Governmental activities:
General government
Public safety
Community development
Public services
Community services
Interest on long -term debt
Total governmental activities expenses
Program revenues:
Governmental activities:
Charges for services:
General government
Public safety
Community development
Public services
Community services
Operating grants and contributions
Capital grants and contributions
Total governmental activities
program revenues
Net revenues (expenses):
Governmental activities
Total net revenues (expenses)
Last Eight Fiscal Years
(accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
$ 10,884,758
4,602,363
2,146,985
6,165,477
3,819,864
14,205,151
41,824,598
$ 9,938,841
5,707,203
3,534,782
5,833,376
4,008,347
10,935,104
39,957,653
$ 12,208,992
7,375,602
3,083,947
8,404,675
3,994,151
11,077,433
46,144,800
$ 12,700,900
8,369,753
12,009,611
8,739,770
3,519,545
11,146,325
56,485,904
6,474,617
5,874,918
10,081,980
12,199,668
184,242
25,259
39,824
44,919
1,923,284
1,880,802
4,864,686
11,334,631
4,920,172
92,933
70,631
73,260
577,152
1,624,467
1,658,146
1,677,140
387,815
3,807,619
3,586,701
2,600,374
709,009
-
4,332,067
49,777,269
15,176,291
13,305,998
24,634,035
77,707,261
(26,648,307) (26,651,655) (21,510,765) 21,221,357
$ (26,648,307) $ (26,651,655) $ (21,510,765) $ 21,221,357
GASB 34 was implemented for the fiscal year ended June 30, 2003.
Information prior to implementation of GASB 34 is not available.
Source: City Finance Department
-138-
Fiscal Year
2007 2008 2009 2010
$ 10,414,729
$ 8,195,897
$ 10,562,122
$ 10,252,727
11,686,158
14,293,269
13,139,389
11,022,531
21,514,552
32,342,175
31,976,146
15,847,532
9,867,133
10,861,673
14,123,738
14,812,199
6,801,741
6,013,006
4,737,856
4,295,719
11,531,570
10,145,830
10,168,917
10,509,806
71,815,883
81,851,850
84,708,168
66,740,514
9,204,517
6,885,167
4,828,438
3,181,706
4,362,650
3,960,353
1,064,036
924,493
1,364,513
1,422,754
1,482,146
1,578,779
5,043,547
4,109,188
6,482,888
4,561,669
42,085,516
2,159,798
-
-
62,060,743
18, 53 7,260
13, 857,508
10,246,647
(9,755,140) (63,314,590) (70,850,660) (56,493,867)
$ (9,755,140) $ (63,314,590) $ (70,850,660) $ (56,493,867)
-139-
General revenues and other changes
in net assets:
Governmental activities:
Taxes:
Property taxes
Sales taxes
Franchise taxes
Othertaxes
Fines, Forfeitures and Penalties
Investment Income
Miscellaneous
Gain on Defeasance of Bonds
Special Item- Revenue from
Forgiveness of Debt
Special Item- Gain on Settlement
of Long -term Debt
Total governmental activities
Changes in net assets
Governmental activities
Total primary government
CITY OF LAKE ELSINORE
CHANGES IN NET ASSETS
GENERAL REVENUES
Last Eight Fiscal Years
(accrual basis of accounting)
2003
2004
Fiscal Year
2005 2006
$ 11,218,220
$ 10,891,618
$ 16,521,561
$ 23,190,099
5,084,099
5,274,927
6,133,299
6,367,466
884,455
996,394
1,138,484
1,473,018
124,292
515,018
731,100
1,093,484
365,803
377,262
427,975
481,065
7,061,692
7,735,043
8,236,698
11,217,026
1,300,198
2,147,938
3,400,243
4,852,432
8,588,374
-
-
-
324,678
-
-
-
6,724,591
-
-
-
41,676,402
27,938,200
36,589,360
48,674,590
15,028,095
1,286,545
15,078,595
69,895,947
$ 15,028,095
$ 1,286,545
$ 15,078,595
$ 69,895,947
GASB 34 was implemented for the fiscal year ended June 30, 2003.
Information prior to implementation of GASB 34 is not available.
Source: City Finance Department
WE1110
Fiscal Year
2007 2008 2009 2010
$ 26,685,369
$ 33,307,785
$ 31,590,868
$ 25,904,948
7,836,334
8,148,355
6,414,419
6,236,748
1,688,010
1,768,178
1,824,890
1,792,699
1,020,788
770,024
751,794
519,001
599,894
918,619
937,506
733,792
17,220,975
14,271,312
9,334,141
7,470,635
5,839,608
7,193,803
5,768,257
6,661,239
60,890,978 66,378,076 56,621,875 49,319,062
51,135,838 3,063,486 (14,228,785) (7,174,805)
$ 51,135,838 $ 3,063,486 $ (14,228,785) $ (7,174,805)
-141-
General fund:
Reserved
Unreserved
Total general fund
All other governmental funds:
Reserved
Unreserved, reported in:
Special revenue funds
Debt service funds
Capital projects funds
Total all other governmental funds
CITY OF LAKE ELSINORE
FUND BALANCES OF GOVERNMENTAL FUNDS
Last Eight Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003 2004 2005 2006
$
10,603,350
$
9,607,894
$
9,744,980
$
8,796,782
5,115,310
5,174,923
8,067,151
15,829,308
$
15,718,660
$
14,782,817
$
17,812,131
$
24,626,090
$
124,515,734
$
122,139,124
$
126,093,490
$
185,264,579
4,894,111
7,686,320
5,010,728
6,382,838
(3,523,760)
(8,665,854)
(7,503,643)
(11,915,554)
(5,395,439)
(50,687)
7,608,315
9,141,046
$
120,490,646
$
121,108,903
$
131,208,890
$
188,872,909
The City of Lake Elsinore has elected to show only eight years of data for this schedule.
Source: City Finance Department
-142-
Fiscal Year
2007 2008 2009 2010
$ 9,936,859
$ 9,476,355
$ 8,580,684
$ 8,593,518
10,496,356
9,285,492
8,762,248
6,323,801
$ 20,433,215
$ 18,761,847
$ 17,342,932
$ 14,917,319
$ 215,008,475 $ 188,270,868 $ 163,563,859 $ 161,473,544
7,921,415
10,731,428
5,241,416
6,999,090
(10,006,673)
(5,375,005)
(3,841,954)
(28,305,645)
13,041,510
8,824,274
2,966,273
5,497,137
$ 225,964,727
$ 202,451,565
$ 167,929,594
$ 145,664,126
-143-
CITY OF LAKE ELSINORE
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
Revenues:
Property taxes
Other taxes
Licenses, permits and fees
Intergovernmental revenues
Charges for services
Fines, forfeitures and penalties
Investment income
Special assessments
Contributions from property owners
Miscellaneous
Total revenues
Expenditures
Current:
General government
Public safety
Community development
Public services
Community services
Pass - through payments
Set aside suspension
SERAF payments
Capital outlay
Debt service:
Payment to refunding bond escrow agent
Bond issuance costs
Principal retirement
Interest and fiscal charges
Debt issuance costs
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers out
Settlement
Contribution to RDA
Proceeds of refunding bonds
Debt issuance
Loans issued
Loan payments
Premium on bonds
Bond discount
Refunding bonds issued
Capital debt issued
Payment to refunded bond escrow agent
Total other financing sources (uses)
Net change in fund balances
Last Eight Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
2003
2004
2005
2006
$ 10,960,120
$ 10,891,618
$ 16,521,561
$ 23,190,099
6,350,946
6,786,339
7,192,270
9,265,130
4,784,007
4,888,957
9,133,887
18,047,742
4,685,876
3,807,619
3,586,701
2,600,374
3,082,673
3,113,391
6,019,081
5,712,480
365,803
377,262
427,975
481,065
7,350,982
7,793,901
8,302,080
11,290,353
1,3 79,409
1,496,031
1,562,3 00
1,569,3 96
-
-
-
49,777,269
3,338,771
2,147,938
3,400,242
4,852,433
42,298,587
41,303,056
56,146,097
126,786,341
5,514,205
3,993,019
6,673,543
5,319,941
4,527,765
5,650,526
7,375,602
8,369,753
2,146,985
3,469,142
3,083,947
5,853,938
4,837,013
4,465,356
7,067,549
7,385,171
3,138,577
3,310,108
3,306,649
2,823,109
2,801,592
3,033,654
3,957,978
5,671,146
2,228,982
2,649,498
2,055,243
17,094,933
2,786,033
3,853,166
3,828,484
4,023,167
10,678,462
11 ,254,303
11,008,078
11 ,097,091
2,484,161
3,500
-
-
41,143,775
41,682,272
48,357,073
67,638,249
1,154,812 (379,216) 7,789,024 59,148,092
501,913 26,486,109 5,423,965 1,823,891
(501,913) (26,486,109) (5,423,965) (1,823,891)
(1,250,000) - - -
(1,947,000) - - -
31,570,000 - - -
- - 391,811 81,065
(31,666,626) - - -
(3,293,626) - 391,811 81,065
$ (2,138,814) $ (379,216) $ 8,180,835 $ 59,229,157
Debt service as a percentage of
noncapital expenditures 41.0% 38.7%
The City of Lake Elsinore has elected to show only eight years of data for this schedule.
Source: City Finance Department
-144-
32.0% 29.9%
Fiscal Year
2007 2008 2009 2010
$ 26,685,369 $ 33,307,785
10,503,108
10,741,363
7,775,477
6,266,086
2,700,185
4,109,188
5,791,690
4,579,433
599,894
918,619
17,268,845
14,237, 891
1,364,513
1,422,754
42,085,516
2,159,798
5,839,608
7,193,803
120,614,205
84,936,720
$ 31,590,868
9,071,246
2,267,568
3,630,144
3,548,413
937,506
9,445,099
1,482,146
$ 25,429,344
8,517,826
2,587,918
7,322,908
1,594,774
733,792
7,928,611
1,578,779
5,768,257 6,910,516
67,741,247 62,604,468
8,548,606
6,190,346
6,479,795
6,797,320
11,686,158
14,293,269
13,139,3 89
11,022,531
3,481,278
4,549,297
4,662,003
3,049,501
8,431,702
9,321,939
12,202,971
12,901,064
6,063,747
5,221,331
3,750,267
3,313,082
7,006,699
9,878,294
9,647,322
7,782,513
-
-
-
3,750,000
-
-
-
6,976,853
25,236,661
49,056,332
38,113,875
4,394,834
-
-
-
1,987,745
-
1,213,789
-
1,584,965
4,979,674
3,872,984
5,469,538
6,037,770
11,492,802
10,132,679
10,066,977
10,318,720
86,927,327
113,730,260
103,532,137
79,916,898
33,686,878 (28,793,540) (35,790,890) (17,312,430)
7,089,415 6,412,891
4,386,162 4,500,694
(7,089,415) (6,412,891)
(4,386,162) (4,500,694)
- -
- 26,290,000
- -
- (23,235,000)
- 274,026
- -
- (3,117)
- (166,785)
- 22,295,000
- 26,290,000
- 3,265,000
- -
- (22,221,899)
- (22,082,648)
- 3,609,010
- 7,095,567
$ 33,686,878 $ (25,184,530) $ (35,790,890) $ (10,216,863)
26.7% 21.7% 18.7% 27.5%
M[RM
THIS PAGE INTENTIONALLY LEFT BLANK
-146-
CITY OF LAKE ELSINORE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Fiscal Years
(rate per $100 of taxable value)
Fiscal Year
Agency
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
City Basic Levy'
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
1.00000
East Municipal
Water
0.00300
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
Menifee School
District
0.00000
0.00000
0.00000
0.02117
0.01625
0.01435
0.00578
0.00549
0.02370
0.03254
Metropolitan
Water District
0.00880
0.00770
0.00670
0.00610
0.00580
0.00520
0.00470
0.00450
0.00430
0.00430
Perris School
District 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.02999 0.02894 0.02485
Perris Union
High School 0.01742 0.01696 0.01748 0.0156 0.01192 0.0235 0.03222 0.0211 0.02031 0.02686
Total Direct and
Overlapping,
Tax Rates 1.02922 1.02466 1.02418 1.04287 1.03397 1.04305 1.04270 1.06108 1.07725 1.08855
City's Share of 1%
Levy Per Prop 133 0.17415 0.17415 0.17415 0.17415 0.17415 0.17415 0.17415 0.17415 0.17415 0.17415
General Obligation
Debt Rate:
RDA basic rate 1.00880 1.00770 1.00670 1.00610 1.00580 1.00520 1.00470 1.00450 1.00430 1.00430
Total Direct Rates 0.60829 0.63574 0.63470 0.61268 0.58827 0.57653 0.53996 0.51615 0.51762 0.53493
Notes:
'In 1978, the voters of the State of California passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% iE
shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are
charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
,Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates
apply to all city property owners.
3City's Share of 1% Levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the city.
ERAF general fund tax shifts may not be included in tax ratio figures.
4Redevelopment Agency (RDA) rate is based on the largest RDA tax rate area (TRA) and includes only rate(s) from indebtedness
adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values
5Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section
information.
Source: Riverside County Assessor 2000/01 - 2009/10 Tax Rate Table and Annual Tax Increment Tables
-147-
CITY OF LAKE ELSINORE
PRINCIPAL PROPERTY TAX PAYERS
Current Year and Nine Years Ago
(1) 2009 -10 Local Secured Assessed Valuation: $ 4,062,119,890
(2) 2000 -01 Local Secured Assessed Valuation: $ 1,371,273,848
Source: Riverside County Assessore 2000/01 - 2009/10 Combined Tax Rolls.
-148-
2010
2001
Percent of
Percent of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Value (1)
Value
Value (2)
Fairfield Ramsgate
$ 50,680,569
1.25%
-
0.00%
Castle and Cooke, Lake Elsinore Outlet
43,214,483
1.06%
-
0.00%
Castle and Cooke, Lake Elsinore West
38,596,665
0.95%
-
0.00%
Centex Homes
33,611,677
0.83%
-
0.00%
Castle and Cooke, Alberhill Ranch
30,216,161
0.74%
-
0.00%
Broadstone Rivers Edge
28,109,172
0.69%
-
0.00%
Harbor Grand Apartments Investment
24,923,963
0.61%
-
0.00%
Pardee Homes
20,375,351
0.50%
-
0.00%
Deutsche Bank National Trust Company
19,076,900
0.47%
-
0.00%
Laing CP Lake Elsinore
17,998,123
0.44%
-
0.00%
MCG Outlet Centers LP
-
0.00%
$ 34,817,166
2.54%
King Vedeocable Company
-
0.00%
23,351,114
1.70%
North Peak Partners
-
0.00%
13,909,855
1.01%
Wares Delaware Corporation
-
0.00%
13,003,891
0.95%
Oak Grove Equities
-
0.00%
11,495,055
0.84%
Albertson's
-
0.00 %
11,328,701
0.83%
Pardee Grossman Cottonwood Canyon
-
0.00%
10,719,689
0.78%
Louis F. DePasquale
-
0.00%
10,533,104
0.77%
Elsinore 98
-
0.00%
9,429,701
0.69%
White Rock Acquisition Company
-
0.00%
7,968,373
0.58%
$ 306,803,064
7.55%
$ 146,556,649
10.69%
(1) 2009 -10 Local Secured Assessed Valuation: $ 4,062,119,890
(2) 2000 -01 Local Secured Assessed Valuation: $ 1,371,273,848
Source: Riverside County Assessore 2000/01 - 2009/10 Combined Tax Rolls.
-148-
CITY OF LAKE ELSINORE
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Fiscal Years
Collections in T
Total Collections to Date
Collected within the
Fiscal
Taxes Levied
Fiscal Year of Levy
Year Ended
for the
Percent
June 30
Fiscal Year
Amount
of Levy
2001
$ 1,004,347
$ 986,591
98.23%
2002
1,006,982
1,027, 863
102.07%
2003
1,035,888
1,193,908
115.25%
2004
1,091,168
1,129,675
103.53%
2005
1,327,699
1,405,509
105.86%
2006
1,446,320
1,742,413
120.47%
2007
1,714,890
2,131,576
124.30%
2008
2,208,181
2,313,581
104.77%
2009
2,230,658
2,254,961
101.09%
2010
1,894,552
1,958,553
103.38%
Collections in T
Total Collections to Date
Subsequent P
Percent
Years A
Amount o
of Levy
Note:
The amounts presented include City of Lake Elsinore property taxes only (excludes Redevelopment Agency taxes).
(1) Collections received through March 1, 2011.
Sources: County of Riverside, Auditor - Controller
City of Lake Elsinore Finance Department
-149-
CITY OF LAKE ELSINORE
ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY
Last Ten Fiscal Years
Notes:
Exemption information not available for the fiscal years ended June 30, 2000 to June 30, 2002. Exemptions are netted directly
against the individual property categories.
n/a =not available
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%
based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by
an "inflation factor" (limited to a maximum increase of 2 %). With few exceptions, property is only reassessed at the time that
it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold.
The assessed valuation data shown above represents the only data currently available with respect to the actual market
value of taxable property and is subject to the limitations described above.
Source: Riverside County Auditor - Controller
- 150-
City
Fiscal Year
Taxable
Ended
Less:
Assessed
June 30
Secured
Unsecured
Exemptions
Value
2001
$ 1,285,384,000
$ 61,516,000
$ -
$ 1,346,900,000
2002
1,455,116,000
70,676,000
-
1,525,792,000
2003
1,589,704,975
63,790,757
27,463,860
1,626,031,872
2004
1,866,148,691
71,494,000
31,263, 886
1,906,378,805
2005
2,197,921,536
92,924,768
32,978,771
2,257, 867,533
2006
2,797,749,314
88,651,279
34,890,056
2,851,510,537
2007
3,600,113,159
84,367,728
35,859,827
3,648,621,060
2008
4,805,770,856
119,981,392
38,480,226
4,887,272,022
2009
4,813,251,955
114,151,249
41,225,540
4,886,177,664
2010
3,957,216,079
104,899,011
42,153,790
4,019,961,300
Notes:
Exemption information not available for the fiscal years ended June 30, 2000 to June 30, 2002. Exemptions are netted directly
against the individual property categories.
n/a =not available
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1%
based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by
an "inflation factor" (limited to a maximum increase of 2 %). With few exceptions, property is only reassessed at the time that
it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold.
The assessed valuation data shown above represents the only data currently available with respect to the actual market
value of taxable property and is subject to the limitations described above.
Source: Riverside County Auditor - Controller
- 150-
ONE
Redevelopment Agency
Taxable
Total
Less:
Assessed
Direct Tax
Secured
Unsecured
Exemptions
Value
Rate
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1,061,846,886
61,221,639
16,181,794
1,106,886,731
0.410%
n/a
n/a
n/a
n/a
n/a
1,309,466,152
88,347,530
18,419,220
1,379,394,462
0.454%
1,614,383,654
82,665,786
18,747,059
1,678,302,381
0.512%
1,917,886,856
79,195,924
18,939,103
1,978,143,677
0.474%
2,393,710,398
100,647,142
19,160,534
2,475,197,006
0.452%
2,411,198,603
91,268,375
19,499,200
2,482,967,778
0.429%
2,077,411,999
83,367,167
19,152,000
2,141,627,166
0.000%
ONE
CITY OF LAKE ELSINORE
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Fiscal Years
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: City Finance Department; California State Department of Finance
-152-
Governmental Activities
Fiscal Year
Local
Tax
Revenue/
Developer/
Ended
Agency
Allocation
Revenue Refunding
Owner
June 30
Revenue Bonds
Bonds
Bonds
Agreements
2001
$ 70,420,000
$ 60,955,000
$ 15,660,000
$ 5,213,032
2002
69,610,000
60,220,000
15,660,000
4,819,657
2003
60,375,000
59,290,000
15,660,000
3,098,473
2004
59,315,000
58,310,000
15,660,000
2,704,814
2005
58,285,000
57,320,000
15,375,000
4,718,010
2006
57,160,000
56,280,000
15,075,000
4,396,460
2007
55,845,000
55,175,000
14,760,000
3,933,650
2008
58,755,000
54,010,000
14,435,000
3,635,257
2009
56,745,000
52,785,000
14,095,000
3,441,041
2010
53,725,000
54,545,000
13,740,000
3,263,574
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Source: City Finance Department; California State Department of Finance
-152-
Governmental Activities (Continued
- 153 -
Percentage
Debt
Insurance
per
Total
Notes/ Loans
Capitalized
Premium
OPEB
Governmental
Payable
Lease
Deposit Payable
Obligation
Activities
$ 9,378,766
$ 66,753
$ -
$ -
$ 161,693,551
8,787,427
44,682
-
-
159,141,766
1,710,407
28,185
-
-
140,162,065
1,270,901
57,992
-
-
137,318,707
1,055,676
306,398
-
-
137,060,084
1,012,501
234,021
-
-
134,157,982
403,126
166,532
-
-
130,283,308
356,589
93,478
-
-
131,285,324
307,542
20,316
537,869
1,048,397
128,980,165
256,760
-
518,521
2,086,786
128,135,641
- 153 -
Percentage
Debt
of Personal
per
Income
Capita
34.06%
5,589
31.81% 5,300
26.82% 4,489
23.85% 4,109
20.93% 3,817
18.28% 3,513
15.30% 3,165
12.75% 2,760
11.90% 2,604
12.03% 2,546
Fiscal Year
Ended
June 30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
CITY OF LAKE ELSINORE
RATIO OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Outstanding General Bonded Debt
Tax Percent of
Allocation Assessed
Bonds Total Value
60,955,000
60,220,000
59,290,000
58,310,000
57,320,000
56,280,000
55,175,000
54,010,000
52,785,000
54,545,000
60,955,000
60,220,000
59,290,000
58,310,000
57,320,000
56,280,000
55,175,000
54,010,000
52,785,000
54,545,000
4.53%
3.95%
3.65%
3.06%
2.54%
1.97%
1.51%
1.11%
1.08%
1.36%
General bonded debt is debt payable with governmental fund resources and general obligation
bonds recorded in enterprise funds (of which, the City has none).
Source: City Finance Department
-154-
Per
Capita
$ 2,107
2,006
1,899
1,745
1,596
1,474
1,340
1,135
1,066
1,084
CITY OF LAKE ELSINORE
DIRECT AND OVERLAPPING DEBT
June 30, 2010
City Assessed Valuation
Redevelopment Agency Incremental Valuation
Total Assessed Valuation
Overlapping Tax and Assessment Debt:
Riverside County Flood Control District, Zone No. 3 Benefit Assessment District
Metropolitan Water District
Perris Union High School District
Menifee Union School District
Perris School District
Lake Elsinore Unified School District Community Facilities Districts
City of Lake Elsinore Community Facilities District No. 88 -3
City of Lake Elsinore Community Facilities District No. 90 -2
City of Lake Elsinore Community Facilities District No. 95 -1
City of Lake Elsinore Community Facilities District No. 98 -1
City of Lake Elsinore Community Facilities District No. 2003 -2
City of Lake Elsinore Community Facilities District No. 2004 -3
City of Lake Elsinore Community Facilities District No. 2005 -1
City of Lake Elsinore Community Facilities District No. 2005 -2
City of Lake Elsinore Community Facilities District No. 2005 -5
City of Lake Elsinore Community Facilities District No. 2005 -6
City of Lake Elsinore Community Facilities District No. 2006 -2
City of Lake Elsinore 1915 Act Bonds
Total overlapping tax and assessment debt
Direct and Overlapping General Fund Debt:
Riverside County General Fund Obligations
Riverside County Pension Obligations
Riverside County Board of Education Certificates of Participation
Mount San Jacinto Community College District General Fund Obligations
Lake Elsinore Unified School District Certificates of Participation
Perris Union High School District General Fund Obligations
Menifee and Perris School District Certificates of Participation
City of Lake Elsinore General Fund Obligations
Elsinore Water District Certificates of Participation
Ortega Trail Recreation and Park District Certificates of Participation
Total gross direct and overlapping general fund debt
Less: Riverside County General Fund self - supporting obligations
Total net direct and overlapping general fund debt
Gross combined total debt (2)
Net total direct and overlapping debt
$ 4,062,115,090
$ 237,349,511
1.374%
2,160,779,166
10,118,517
1.374%
$ 6,222,894,256
5,153,874
1.374%
7,240,000
City's
3.614%
12,470,000
Share of
Percentage
Outstanding
Overlapping
Applicable (1)
Debt 6/30/10
Debt 6/30/10
47.104%
$ 2,965,000
$ 1,396,634
0.097%
264,220,000
256,293
0.763%
56,172,260
428,594
1.133%
45,408,922
514,483
0.385%
7,494,571
28,854
100.000%
24,891,327
24,891,327
100.000%
29,125,000
29,125,000
100.000%
15,905,000
15,905,000
100.000%
1,250,000
1,250,000
100.000%
17,605,000
17,605,000
100.000%
32,400,000
32,400,000
100.000%
45,750,000
45,750,000
100.000%
8,975,000
8,975,000
100.000%
24,575,000
24,575,000
100.000%
3,265,000
3,265,000
100.000%
3,510,000
3,510,000
100.000%
7,255,000
7,255,000
100.000%
20,218,325
20,218,325
$ 237,349,511
1.374%
$ 736,427,761
10,118,517
1.374%
375,100,000
5,153,874
1.374%
7,240,000
99,478
3.614%
12,470,000
450,666
28.196%
38,895,000
10,966,834
0.763%
32,440,000
247,517
1.133 & 0.385 %
15,315,000
108,331
100.000%
13,740,000
13,740,000
47.570%
283,874
135,039
38.771%
210,000
81,419
41,101,675
207,783
40,893,892
Notes:
(1) For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed
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.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and
non - bonded capital lease obligations.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This
schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents
and businesses of the City. This process recognizes that, when considering the City's ability to issue and repay
long -term debt, the entire debt burden borne by the residents and businesses should be taken into account. However,
this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping
government.
Source: California Municipal Statistics
-155-
$ 278,451,186
$ 278,243,403
CITY OF LAKE ELSINORE
LEGAL DEBT MARGIN INFORMATION
Last Ten Fiscal Years
Fiscal Year
2001 2002 2003
2004
Assessed valuation $ 1,346,900,000 $ 1,525,792,000 $ 1,626,026,872
$ 1,907,367,963
Conversion percentage 25% 25% 25%
25%
Adjusted assessed valuation 336,725,000 381,448,000 406,506,718
476,841,991
Debt limit percentage 15% 15% 15%
15%
Debt limit 50,508,750 57,217,200 60,976,008
71,526,299
Total net debt applicable to limitation - - -
-
Legal debt margin $ 50,508,750 $ 57,217,200 $ 60,976,008
$ 71,526,299
Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0%
0.0%
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed
However, this provision was enacted when assessed valuation was based upon 25% of market value.
Effective with the 1981 -82 fiscal year, each parcel is now assessed at 100% of market value (as of the
most recent change in ownership for that parcel). The computations shown above reflect a conversion
of assessed valuation data for each fiscal year that was in effect at the time that the legal debt margin
was enacted by the State of California for local governments located within the state.
Sources: Riverside County Assessor's Office
City Finance Department
-156-
Fiscal Year
2005
2006
2007
2008
2009
2010
$ 2,243,178,491
$ 2,851,510,537
$ 3,648,621,060
$ 4,887,272,022
$ 4,886,177,664
$ 4,019,961,300
25%
25%
25%
25%
25%
25%
560,794,623
712,877,634
912,155,265
1,221,818,006
1,221,544,416
1,004,990,325
15%
15%
15%
15%
15%
15%
84,119,193
106,931,645
136,823,290
183,272,701
183,231,662
150,748,549
$ 84,119,193
$ 106,931,645
$ 136,823,290
$ 183,272,701
$ 183,231,662
$ 150,748,549
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
-157-
Fiscal Year
Ended
June 30
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Redevelopment
Tax Increment
Revenue
$ 7,564,231
8,400,465
9,824,602
9,749,507
13,136,081
18,500,277
21,112,545
26,484,367
24,892,412
19,877,054
CITY OF LAKE ELSINORE
PLEDGED - REVENUE COVERAGE
Last Ten Fiscal Years
Debt Service
Principal
$ 1,364,959
1,365,504
1,377,603
1,413,940
1,300,793
1,932,704
2,307,832
1,688,978
1,761,323
1,295,000
Interest
3,694,508
3,663,230
3,992,473
3,635,594
3,629,620
3,888,298
4,108,847
3,663,448
3,558,405
3,304,802
Coverage
1.50
1.67
1.83
1.93
2.66
3.18
3.29
4.95
4.68
4.32
Tax
Allocation
Bonds
$ 60,955,000
60,220,000
59,290,000
58,310,000
57,320,000
56,280,000
55,175,000
54,010,000
52,785,000
54,545,000
Notes: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements.
Source: City Finance Department
-158-
CITY OF LAKE ELSINORE
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Fiscal Years
Sources:
(1) State Department of Finance
(2, 3 *) Income Data: ESRI - Demographic Estimates are based on the last available Census. Projections
are developed by incorporating all of the prior census dta relased to date. Post census trends in
the population are extracted from a variety of data sources.
(4) California State Employment Development Department
-159-
Personal
Per
Fiscal Year
Income
Capita
Unemployment
Ended
Population
(In Thousands
Personal
Rate
June 30
(1)
(2)
Income (3) *
(4)
2001
28,930
$ 474,681
$ 16,408
5.20%
2002
30,027
500,294
16,661
5.30%
2003
31,225
522,538
16,735
6.30%
2004
33,423
575,658
17,223
6.30%
2005
35,905
654,965
18,242
5.80%
2006
38,185
734,050
19,224
5.20%
2007
41,164
851,375
20,683
4.90%
2008
47,567
1,029,928
21,652
5.80%
2009
49,528
1,083,488
21,876
8.20%
2010
50,324
1,065,544
21,174
13.20%
Sources:
(1) State Department of Finance
(2, 3 *) Income Data: ESRI - Demographic Estimates are based on the last available Census. Projections
are developed by incorporating all of the prior census dta relased to date. Post census trends in
the population are extracted from a variety of data sources.
(4) California State Employment Development Department
-159-
CITY OF LAKE ELSINORE
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
2010
2001
"Total Employment" as used above represents the total employment of all employers located within City limits.
Sources: City GIS Department
California Employment Development Department
- 160-
Percent of
Percent of
Number of
Total
Number of
Total
Employer
Employees
Employment
Employees
Employment
Lake Elsinore Unified School District
1,060
6.34%
-
0.00%
Walmart
200
1.20%
245
2.45%
Costco
200
1.20%
-
0.00%
Lake Elsinore Storm Baseball
200
1.20%
250
2.50%
Shirt WERX / Innovative Merchandising
160
0.96%
-
0.00%
Home Depot
160
0.96%
-
0.00%
Target
160
0.96%
-
0.00%
Riverside Public Social Service
160
0.96%
-
0.00%
Lake Elsinore Hotel & Casino
150
0.90%
200
2.00%
State Bros Markets
140
0.84%
136
1.36%
Elsinore Valley Water District
120
0.72%
-
0.00%
Lake Chevrolet
116
0.69%
46
0.46%
Pacific Clay Products, Inc.
101
0.60%
130
1.30%
Lake Elsinore Ford
101
0.60%
60
0.60%
Lowe's
100
0.60%
-
0.00%
"Total Employment" as used above represents the total employment of all employers located within City limits.
Sources: City GIS Department
California Employment Development Department
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Function
General government
Community Services
( includes Public works)
Community development
Total
CITY OF LAKE ELSINORE
FULL -TIME AND PART -TIME CITY EMPLOYEES
BY FUNCTION
Last Ten Fiscal Years
Note: Police and Fire services are provided by the County of Riverside.
Source: City Finance Department
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Fiscal Year
2001
2002
2003
2004
2005 2006
2007
2008
2009
2010
17
18
17
19
18 21
26
26
20
20
34
36
34
37
36 41
52
52
41
42
16
17
17
18
17 20
23
23
21
14
67
71
68
74
71 82
101
101
82
76
Note: Police and Fire services are provided by the County of Riverside.
Source: City Finance Department
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CITY OF LAKE ELSINORE
OPERATING INDICATORS
BY FUNCTION
Last Ten Fiscal Years
Function
Police:
Lake related boating enforcement citations
Hazardous traffic violations
DUI arrests
Fire:
Calls
Fire suppression equipment
Public works:
Centerline miles of paved surface streets maintained
Centerline miles of dirt surface streets maintained
Weed abatement -lots cleaned
Community Development:
Construction permits issued
Property value per permits (estimated in 000's)
New home building permits issued
Parks and recreation:
Daily lake use passes sold
n/a =not available
Source: City of Lake Elsinore, Various Departments
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Fiscal Year
2001
2002
2003
2004
1,160
1,048
1,091
800
n/a
597
519
1,533
n/a
n/a
n/a
n/a
n/a
n/a
n/a
3,120
n/a
n/a
n/a
3
129
129
135
140
n/a
n/a
21
21
936
890
860
890
989
1,549
1,838
2,361
$ 68,503
$ 126,600
$ 159,346
$ 153,186
301
844
550
766
36,714 35,700 26,550 28,500
Fiscal Year
2005
2006
2007
2008
2009
2010
703
808
625
100
n/a
444
1,500
2,376
2,500
5,000
n/a
1,561
n/a
n/a
n/a
n/a
n/a
261
3,391
3,610
3,567
3,778
3,876
n/a
3
3
3
3
3
n/a
140
140
143
155
174
173
21
13
12
10
9
9
552
706
700
581
390
365
3,516
4,260
2,527
1,604
505
771
$ 242,988
$ 462,204
$ 153,013
$ 78,680
$ 21,474
$ 42,848
1,317
1,355
450
74
43
211
26,530 34,835 32,018 36,000 25,230 23,765
SIMM
Function
Police:
Stations
Fire:
Fire stations
Public works:
Street (miles)
Lakeshore (miles)
Parks and recreation:
Parks
Beaches and Recreation
Facilities
Libraries
Stadium (Amphitheater
seats)
Lake (surface acres)
n/a =not available
CITY OF LAKE ELSINORE
CAPITAL ASSET STATISTICS
BY FUNCTION
Last Ten Fiscal Years
Fiscal Year
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
1
1
1
1
1
1
1
1
1
1
1
1
2
2
3
3
3
3
3
3
153.3
153.3
153.3
153.3
153.3
156
157
157
157
157
10.5
10.5
10.5
10.5
10.5
10.5
10.5
10.5
10.5
10.5
12
12
12
12
12
12
15
15
15
15
n/a
n/a
8
8
8
8
8
8
8
8
1
1
1
1
2
2
2
2
2
2
6,600
6,600
6,600
6,600
6,600
6,600
6,600
6,600
6,600
6,600
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
3,300
Source: City of Lake Elsinore, Various Departments
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