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HomeMy WebLinkAboutItem No. 3 AttachementCITY OF LAKE ELSINORE, CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT WITH REPORT ON AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS FOR THE YEAR ENDED JUNE 30, 2012 Prepared By: Department of Administrative Services CITY OF LADE ELSINORE, CALIFORNIA TABLE OF CONTENTS For the year ended June 30, 2012 Page Number INTRODUCTORY SECTION: Letter of lTansmittal i - v Organization Chart vi Directory of Officials vii 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 Fiduciary Funds: Statement of Fiduciary Net Assets 25 Statement of Change in Fiduciary Net Assets 26 Notes to Basic Financial Statements 27-98 Required Supplementary Information: 99 Schedule of Funding Progress 100 Budgetary Comparison Schedule: General Fund 101 Note to Required Supplementary Information 102 CITY OF LAKE ELSINORE, CALIFORNIA TABLE, OF CONTENTS (CONTINUED) For the year ended June 30, 2012 Page Number FINANCIAL SECTION (CONTINUED): Supplementary Information: 103 Other Governmental Funds: 105 Combining Balance Sheet 106 Combining Statement of Revenues, Expenditures and Changes in fund Balances 107 Other Special Revenue Funds: 108- 109 Combining Balance Sheet 110 - 113 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 114- 117 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Supplemental Law Enforcement Service Special Revenue Fund 118 Justice Assistance Grant Program Special Revenue Fund 119 Office of Traffic and Safety Special Revenue Fund 120 Traffic Offender Special Revenue Fund 121 Gas Tax Special Revenue Fund 122 Transportation - Measure A Special Revenue Fund 123 Traffic Safety Special Revenue Fund 124 City -Wide Lighting and Landscaping Special Revenue Fund 125 L.L.M.D. No. 1 Special Revenue Fund 126 Geothermal Special Revenue Fund 127 AB 2766 Air Pollution Special Revenue Fund 128 C.D.B.G. Special Revenue Fund 129 Developer Agreement Revenue /Trust Special Revenue Fund 130 Affordable Housing In Lieu Special Revenue Fund 131 City Hall /Public Works Special Revenue Fund 132 Community Center Special Revenue Fund 133 Lake Side Facilities Special Revenue Fund 134 Animal Shelter Special Revenue Fund 135 Camino Del Norte Special Revenue Fund 136 Miscellaneous Grants Special Revenue Fund 137 N.P.D.E.S. Special Revenue Fund 138 PEG Grant Special Revenue Fund 139 CITY OF LAKE ELSINORE, CALIFORNIA TABLE OF CONTENDS (CONTINUED) For the year ended June 30, 2012 Page Number FINANCIAL SECTION (CONTINUED): Supplementary Information (Continued): Other Capital Projects Funds: 141 Combining Balance Sheet 142- 143 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 144- 145 Schedules of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Miscellaneous General Project Capital Projects Fund 146 Park Improvement and Development Capital Prgjects Fund 147 Street Capital Improvements Capital Projects Fund 148 Storm Drain Capital Pro jects Fund 149 Library Capital Improvement Capital Projects Fund 150 Signalization Improvement Capital Projects Fund 151 Traffic Improvements Capital Projects Fund 152 City Fire Protection Capital Projects Fund 153 Public Improvement In -Lieu Capital Projects Fund 154 TUMF Capital Projects Fund 155 Boat Launch Capital Projects Fund 156 Assessment Districts Capital Projects Fund 157 Permanent Fund: 159 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Endowment'Drust Permanent Fund 160 Agency Funds: 161 Combining Statement ofAssets and Liabilities 162 Combining Statement of Changes in Assets and Liabilities 163 - 164 Capital Assets: 165 Capital Assets Used in the Operation of Governmental Funds Schedule by Source 166 CITY OF LAKE ELSINORE, CALIFORNIA "TABLE OF CONTENTS (CONTINUED) For the year ended June 30, 2012 STATISTICAL SECTION: Page Number Description of Statistical Section Contents 167 Financial Trends Net Assets by Component - Last Ten Fiscal Years 168-169 Changes in Net Assets - Expenses and Program Revenues - Last Ten Fiscal Years 170- 171 Changes in Net Assets - General Revenues - Last Ten Fiscal Years 172- 173 Fund Balances of Governmental Funds - Last Ten Fiscal Years 174- 175 Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years 176- 177 Revenue Capacity Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 179 Principal Property Taxpayers - Current Year and Nine Years Ago 180 Property Tax Levies and Collections - Last Ten Fiscal Years 181 Assessed Value and Estimated Actual Value ofTaxable Property - Last Ten Fiscal Years 182- 183 Debt Capacity Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 184- 185 Ratio of General Bonded Debt Outstanding - Last Ten Fiscal Years 186 Direct and Overlapping Debt 187 Legal Debt Margin Information - Last Ten Fiscal Years 188- 189 Pledged Revenue Coverage - Last "fen Fiscal Years 190 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Fiscal Years 191 Principal Employers - Current Year and Nine Years Ago 192 Operating Information: Full= Time and Part -Time City Employees by Function - Last Ten Fiscal Years 193 Operating Indicators by Function - Last Ten Fiscal Years 194- 195 Capital Asset Statistics by Function - Last Ten Fiscal Years 196 INTRODUCTORY SUCTION Crry of LADE L S I NORX �� DaE.n�[Xr�zenne. March 27, 2013 Honorable Mayor and City Council Lake Elsinore, California Submitted for your information and consideration is the .June 30, 2012 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 ofthe 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 ccrtified 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, White Nelson Diehl Evans, 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 for the seven months ended January 31, 2012, 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. Honorable Mayor and City Council March 27, 2013 Services Provided The City provides a wide range of municipal services for its citizens, including police, fire services, parks, community services, planning and development, sweet 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 find 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. Honorable Mayor and City Council March 27, 2013 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 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, Special Revenue Funds and certain Capital Project Funds. The level of budgetary control is maintained at the expenditure object level for fixed assets. Schedules of acquisitions of fixed assets at a cost of $5,000 or more and infrastructure at a cost of $50,000 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. Honorable Mayor and City Council March 27, 2013 General Government Operations Revenue for the governmental fund types totaled $54.3 million for fiscal year 2011-12. This was a decrease of $9.7 million or 15.1% from the 2010 -11 fiscal year. The primary explanation for this decrease is related to the dissolution Of the Lake Elsinore Redevelopment Agency in .January 2012. The City elected to serve as the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore on .January 24, 2012. The activity of the former Lake Elsinore Redevelopment through January 31, 2012 is reported in the governmental funds of the City. After the date of dissolution, the housing assets, obligations, and activities ofthe former Redevelopment Agency were transferred to, and are reported in a special revenue fund in the financial statements of the City. All other assets, obligations, and activities of the former Redevelopment Agency were transferred to, and are reported in a fiduciary fund (private- purpose trust fund) in the financial statements of the City. Expenditures for governmental purposes totaled $62.8 million for fiscal year 2011 -12. This was a decrease of $17.7 million or 22.0% from fiscal year 2010-11. As noted above under revenues, the primary explanation for this decrease is related to the dissolution of the Lake Elsinore Redevelopment Agency in ,January 2012. Cash Management' Cash temporarily idle during the year was invested in 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 and workers compensation. 'The Authority utilizes a staff of risk managers to assist member agencies in all aspects of coverage and safety issues. Debt Administration The City of Lake Elsinore, not including the component units, has no outstanding bond debt as of June 30, 2012. 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- - iv - Honorable Mayor and City Council March 27, 2613 Roos Local Bond Pooling Act of 1985. Major Initiatives for the Year and Prospects for the Future The City Council's budgetary and legislative priorities continue to be public safety and transportation. 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 White Nelson Diehl Evans, LLP was selected by the City Council and has just finished their seventh 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. 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 J" s R. Riley, CPA ector of Administrative Servic v- _yj_ CITY OF LAKE ELSINORE DIRECTORY OF OFFICIALS* .tune 30, 2012 ELECTED OFFICIALS Brian Tisdale Mayor Daryl Hickman Mayor Pro Tern Robert E. Magee Councilmember Melissa A. Melendez Councilmember Peter Weber Councilmember Allen Baldwin Treasurer ADMINISTRATION Thomas Evans Interim City Manager Virginia J. Bloom City Clerk Barbara Leibold City Attorney Pat Kilroy Director of Lake, Parks & Recreation James R. Riley Director of Administrative Services Ken Seumalo Director of Public Works Warren Morelion Acting Director of Community Development *At elate of issuanee vii - FINANCIAL SECTION INDEPENDENTAUDITORS' REPORT City Council Members City of Lake Elsinore Lake Elsinore, California 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, 2012, 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. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Lake Elsinore, as of June 30, 2012, 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. As explained further in Note 20, the California State Legislature has enacted legislation that provided for the dissolution of redevelopment agencies in the State of California. In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2013, on our consideration of the City of Lake Elsinore's internal control over financial reporting and on our tests of its compliance with certain laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. -I- 2875 Michelle Drive, Suite 300, I»+iuc, CA 92606 • Tel: 774.978.7300 • Fax: 774.978.7893 (Vices loraled in Omnge ,md San Dm o CoiniliP1 The management's discussion and analysis, the schedule of funding progress and budgetary comparison schedule, as listed in the table of contents as required supplementary information, 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 schedule 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 of the City of Lake Elsinore 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 information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was made for the propose of forming opinions on the financial statements that collectively comprise the City's basic financial statements as a whole. The introductory section, supplementary information and statistical section, as listed in the table of contents, are presented for purposes of additional analysis and are not a required part of the basic financial statements of the City. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic 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 of the City 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 out- opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Li fie >LIY LTA (�%G2 t P Irvine, California March 27, 2013 -2- CITY OF LAKF, ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 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, 2012. 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 $228.1 million (net assets). • The government's total net assets increased by $62.4 million. This increase was generated by total revenues of governmental activities of $116.9 million ($13.7 million in program revenues, $41.5 million in general revenues, and $61.7 million in extraordinary gain from the dissolution of the former Lake Elsinore Redevelopment Agency), offset by $54.5 million in total costs of governmental activities. • As of June 30, 2012, the City of Lake Elsinore's governmental funds reported combined ending fund balances of $180.9 million, an increase of $3.2 million from the prior fiscal year ended June 30, 2011. Approximately $141.6 million, or 62.1 % of total fund balance, are restricted or non - spendable. • As of June 30, 2012, total unassigned or unrestricted fund balance was reported at $9.8 million. Approximately $5.8 million or 59.2% of this amount has been designated for Economic Uncertainty. • The City of Lake Elsinore's total long -term debt decreased by a net $65.7 million during the current fiscal year. This decrease was primarily due to the former Redevelopment Agency's debt being transferred to the Successor Agency Trust Fund. The amount of the transfer was $63.0 million. • The City of Lake Elsinore recognized an extraordinary gain in the amount of $61.7 million on its government -wide financial statements. This was a direct result of the dissolution of the former Lake Elsinore Redevelopment Agency as of January 31, 2012. The City elected to serve as the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore on January 24, 2012. The activity of the former Lake Elsinore Redevelopment through January 31, 2012 is reported in the governmental funds of the City. After the date of dissolution, the housing assets, obligations, and activities of the former Redevelopment Agency were transferred to, and are reported in a special revenue fund in the financial statements of the City. All other assets, obligations, and activities of the former Redevelopment Agency were transferred to, and are reported in a fiduciary fund (private - propose trust fund) in the financial statements of the City. See independent auditors' report. - 3 - CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 OVERVIEW OF THE FINANCIAL STATEMENTS ']'his 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. Government -wide Financial Statements The government- ulide, 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 cash flows. 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 government -wide financial statement presents information about the functions of the City of Lake Elsinore that is principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City of Lake Elsinore include general government, public safety, community development, public services and comnnmity 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, Tike 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. See independent auditors' report. -4- CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) .tune 30, 2012 Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. Ioowever, unlike the government -wide financial statements, governmental funds financial statements focus on near -term bgflows and omjJlom's of spendable resources, as well as on bolonces of spmndable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. 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, the Public Financing Authority Debt Service Fund, the Assessment Districts Capital Projects Fund and the Redevelopment Agency Capital Projects 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 pages 25 - 26 of this report. See independent auditors' report. - 5 - CITY OF LAKE' ELSINORE, CALIFORNIA MANAGEMEN 'I'S DISCUSSION AND ANALYSIS (CONTINUED) Rine 30, 2012 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 27 - 98 ofthis report. 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 99 of this report. The combining statements referred to earlier in connecting with other governmental fiords are presented immediately following the required supplementary information. Combining and individual fund statements and schedules can be found on pages 103 - 166 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 $228.1 million at the close of the most recent fiscal year. Condensed Statements ofNet Assets See independent auditors' report. -6- Governmental Activities 2012 2011 Assets: Current and other assets $ 167,729,202 $ 175,249,935 Capital assets 147,951,102 154,792,875 Total Assets 315,680,304 330,042,810 Liabilities: Long -term debt outstanding 79,928,929 145,591,908 Other liabilities 7,679,761 18,819,221 Total Liabilities 87,608,690 164,411,129 Net Assets: Invested in capital assets, net of related debt 134,976,102 141,427,875 Restricted 141,619,986 134,777,767 Unrestricted (48,524,474) (110,573,961) Total Net Assets 228 071 _ 165 63.1_,68.1. See independent auditors' report. -6- CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) For the City of Lake Elsinore, 59.2% of the net assets reflect its investment in capital assets (e.g., land, buildings, machinery, equipment, and inli-astructure); 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, 62.1 %, represents resources that are subject to external restrictions on how they may be used. The deficit balance of approximately ($48.5) 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 proposes other than capital acquisition. GOVERNMENTAL ACTIVITIES Governmental activities increased the City of Lake Elsinore's total net assets by $62.4 million. Key elements of this change are as follows: See independent auditors' report. -7- CITY OF LAKE I LSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 GOVERNMENTAL. ACTIVITIES (CONTINUED) Condensed Statements of Revenues, Expenses and Changes in Net Assets Expenses General government Governmental Activities 11,079,707 2012 2011 RCVBI1ues: Community development 4,989,313 Program Revenues: Public services 9,834,764 Charges for services $ 5,860,759 $ 6,262,474 Operating grants and contributions 3,306,452 3,292,972 Capital grants and contributions 4,539,293 6,573,426 General Revenues: Change in net assets, before Extraordinary 'faxes: Item 739,617 Property taxes 14,698,032 24,237,023 Sales taxes 7,444,947 7,190,695 Franchise taxes 2,002,550 1,913,807 Other taxes 538,402 483,556 Fines, forfeitures and penalties 1,850,398 97'1457 Investment income 8,031,256 7,782,639 Miscellaneous 6,992,813 5,705,412 Total Revenues 55,264,902 64,414,461 Expenses General government 11,944,507 11,079,707 Public safety 11,911,363 11,212,605 Community development 4,989,313 16,060,065 Public services 9,834,764 8,145,956 Community services 7,010,026 4,704,242 Interest on long -term debt 8,835,312 7,674,342 Total Expenses 54,525,285 58,876,917 Change in net assets, before Extraordinary Item 739,617 5,537,544 Extraordinary Item- Gain on Dissolution of Redevelopment Agency 61,700,316 - Net assets at beginning of year, as restated 165,631,681 160,094,137 Net assets at end of year $ 228.071 ,614 $ 165.631.681 See independent auditors' report. -8- CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 Expenses and Program Revenues — Governmental Activities $30,1100,0110 - N25,000,000 820,000,000 S15,OIIt1,0110 T 10,000004) gg,006,0i10 C;,wtM £u411rtiakly Conuouoily Pohlir Comnnutlty 1111elolnn Go,-ruuaenl Ilvcrinpmrnl tirn9res tierrlrry rro;! -b•nn dr4r1 � G�pnytsex � Pru�run l:rcenueg Revenues by Sources — Governmental Activities ?.lisacinniO11x Charles t „rsenlce> B,n�l Vii, 1 ire 1 "nns., lurletlwr> nudprn;ilti: "s I �5?)39N ;90 I "!u IYzgId1 ctz,x ^ il(1'_. iill See independent auditors' report. -9- CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 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, unassignc(l fi nd 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 fiord balances of $180.9 million, an increase of$3.2 million in comparison with the prior year. Of the $180.9 million ending fund balance, a net $9.8 million constitutes unassigned fund balance, which is available for spending at the government's discretion. The remainder of fund balance is either nonapendable, $79.2 million; reslricterl, $79.3 million; or assigned, $12.6 million to indicate that it is not available for new spending because it has already been committed. The General Fund is the chief operating fund of the City of Lake Elsinore. At the end of the current fiscal year, unassigned fund balance of the General Fund was $10.8 million, while total fiord balance was $13.3 million. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total fund expenditures. Unassigned general fund balance represents 43.8% of total General Fund expenditures, while total fund balance represents 53.9% of that same amount. See independent auditors' report. -10- CITY OP LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS (CONTINUED) The fund balance of the City of Lake Elsinore's General Fund decreased by $1.5 million during the current fiscal year. Key factors in this decrease are as follows: • $1.0 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 $50,000. Expenditures were greater than revenues of approximately $0.5 million. GENERAL FUND BUDGETARY HIGHLIGHTS The difference between the original budget and the final amended budget reflects a $2.0 million net increase in appropriations, including transfers out and can be briefly summarized as follows: $323,755 increase in general government activities $ 63,768 decrease for public safety $126,746 increase in community development • $ 29,495 increase in public services $755,288 increase to community services $826,005 increase in transfers out for one -time capital items. See independent auditors' report. CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT "S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 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, 2012 amounts to $148.0 million (net of accumulated depreciation). This investment in capital assets included land, buildings, improvements, machinery and equipment, and infrastrucune. The total decrease in the City of Lake Elsinore's investment in capital assets for the current fiscal year was 4% and is primarily due to the transfer of capital assets of the former Lake Elsinore Redevelopment Agency to the Successor Agency fiduciary fund. Major or notable capital asset events during the current fiscal year included the following: Completion of the La Laguna Boat Launch improvements. Completion of the Historic Downtown Riverwalk & Nature trail. Improvements to the Lake Elsinore Campgrounds. Other improvements and maintenance of City -owned streets Capital Assets at Year -End (Net of Depreciation) Additional information on the City of Lake Elsinore's capital assets can be found in note 4 of this report. See independent auditors' report. -12- Governmental Activities 2012 2011 Land $ 2,926,422 $ 5,352,814 Construction in progress 12,063,686 2,561,733 Buildings and structures 12,607,406 21,768,556 Improvements other than buildings 31288,347 3,703,028 Machinery and equipment 590,598 710,419 Furniture and fixtures 167,293 115,583 Automotive equipment 158,739 425,789 Infrastructure 1 16,148,61 1 120,154,953 Totals X147 95� $ 154,722 875. Additional information on the City of Lake Elsinore's capital assets can be found in note 4 of this report. See independent auditors' report. -12- CITY OF LAKE ELSINORE, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 CAPITAL ASSETS AND DEBT ADMINISTRATION (CONTINUED) Long -Term Debt At fiscal year -end, the City had long -term debt of $79.9 million. These issues include $61.8 million of local agency revenue bonds, $13.0 million of revenue refunding bonds, $0.6 million in compensated absences, $(0?) million in deferred amounts and $4.7 in OPEI3 obligation. Miring the current fiscal year, long -term debt decreased approximately $65.7 million primarily due to the transfer of long -term debt of the former Lake Elsinore Redevelopment Agency to the Successor Agency fiduciary fund. Outstanding Debt Local agency revenue bonds Tax allocation bonds Subordinate tax allocation bonds Deferred amounts Revenue refunding bonds Disposition and development agreements Owner participation agreements Loans payable Other post - employment benefit obligation Compensated absences Totals Governmental Activities 2012 2011 $ 61,835,000 (232,523) 12,975,000 4,706,761 644,691 $ _79 9283929 $ 64,220,000 60,080,000 4,610,000 (3,444,372) 13,365,000 2,656,593 414,172 204,046 2,877,575 608,894 $. 145,591,908 - Additional information on the City of Lake Elsinore's long -term debt can be found in Notes 7 through 8 and Note 16 of this report. See independent auditors' report. - 13 - CITY OF LAKE ELSIN012E, CALIFORNIA MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED) June 30, 2012 ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES • Property taxes are estimated to increase slightly for the next fiscal year due primarily to anticipated growth as the housing market improves and assessed property values increase. • The retail sales trends increased each quarter in fiscal year 2012 and the projections are expecting this growth to continue during the next year. • Construction activity is beginning to increase and building permits issued are expected to rise. "These factors were considered in preparing the City of Lake Hsinore's budget for fiscal year 2012 -13. 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, jrile�J,lake-elsinore.ore. See independent auditors' report. -14- BASIC FINANCIAL STATEMENTS -15- Cll'Y OF I,AKE ELSINORI::_ CALIFORNIA STA'I'1;M13N'I OP NI- I ASSETS June 30 2012 "I'OTAL ASST I Governmental LIABILITIES: Activities ASSETS: 5,717,318 Cash and investments (Note 2) $ 36.727.235 Accounts receivable 723,406 Accrued interest receivable 1,170.395 Notes receivable (Note 3) 11,837,000 Interest receivable on notes (Note 3) 443,471 Due from other governments 6.627.987 Prepaid expense 1,070,606 Lend held tom resale (Note 5) 48.368 Deferred charges 3,256,587 Restricted assets (Note 2): Cash and investments with fiscal agents 66,852,464 Due from Successor Agency (Notes 9 and 13) 38,971,683 Capital assets, not depreciated (Note 4) 14,990,109 Capital assets. depreciated, net (Note 4) 132,960,994 "I'OTAL ASST I 315,680,304 LIABILITIES: Accounts payable 5,717,318 Accrued liabilities 153,050 Other payroll liabilities 12,919 Deposits and other liabilities 9,512 bucrest payable 989,421 lhtearned revenue 797,541 Noncurrent liabilities (Note 7): Due within one year 3,339,469 Due in more than one year 76,589.460 TO "FAL LIABILITIES 87,608,690 NI; "I ASSETS: Invested in capital assets, net of related debt 134,976,102 Restricted for: Debt service 69,929,108 Specific programs 56,717.693 Specific capital projects 14,973,185 Unrestricted (deficit) (48,524,474) TOTAL NE "f ASSETS $ 228,071,614 See independent auditors' report and notes to basic financial statements. -16- CITY OF LAKE ELSINORI;. CALIFORNIA STA FEMENl-017 ACTIVITIES Poo the year ended June 30. 2012 Functions /programs Expenses Governmental activities: Net (Expense) General government $ 11,944,507 public safety 11,911,363 Community development 4,989,313 Public services 9,834,764 Community services 7,010,026 Interest oil long -term debt 8. 835,312 Pout] governmental activities $ 54525,285 $ 5,860 -759 $ 3306A52 $ 4,539,293 (40,8 18,78 1 General revenues: Tuxes: PI Opel taxes Sales taxes Franchise taxes Other taxes Pines, forfeitures and penalties Investment income Miscellaneous Total general revenues Change in net assets, before extraordinary itch Extraordinary item - Gain on dissolution of redevelopment agency (Note 20) Change in net assets NI-I' ASSETS - BEGINNING 017 YEAR NE I' ASSETS - F.ND OF YEAR See independent auditors' report and notes to basic financial statements. -17- 14,698,032 7,444.947 2.002,550 538,402 1,850.398 8,03 1,256 6,992,813 41.558.398 739,617 61,700,316 62,439,933 165,631,681 $ 228,071,614 Net (Expense) Revenue and Changes in Plaeram 12cvcnues Nut Assets Charges Operating Capital for Chants and Grants and Govel ollental Services Contributions Contributions Activities $ 3,035,324 $ 128,322 $ - $ (8,780,861) - 252,178 - (11,659,185) 1,247,117 - - (3,742,196) - 2,925,952 3,318,109 (3,590,703) 1,578,318 - 1,221,184 (4,210,524) - - - (8,835,312) Pout] governmental activities $ 54525,285 $ 5,860 -759 $ 3306A52 $ 4,539,293 (40,8 18,78 1 General revenues: Tuxes: PI Opel taxes Sales taxes Franchise taxes Other taxes Pines, forfeitures and penalties Investment income Miscellaneous Total general revenues Change in net assets, before extraordinary itch Extraordinary item - Gain on dissolution of redevelopment agency (Note 20) Change in net assets NI-I' ASSETS - BEGINNING 017 YEAR NE I' ASSETS - F.ND OF YEAR See independent auditors' report and notes to basic financial statements. -17- 14,698,032 7,444.947 2.002,550 538,402 1,850.398 8,03 1,256 6,992,813 41.558.398 739,617 61,700,316 62,439,933 165,631,681 $ 228,071,614 CI "IY OF LAKE ELSINORI., CALIFORNIA I W,ANCb: 511131sT GOV ERNM EN I At, FUNDS .June 30, 2612 Special Revenue Fund Low and Moderate 6enclal Income Housing ASSL'IS Fund Asset Cash and invcsuncnls 12,306,799 441,253 Cash and investments with fiscal agents - _ Accounts receivable 723,406 - ACCILied interest receivable 2,526 - Loans receivable from Successor Agency (Note 6) - _ Notes receivable 1,000,0110 10,83700(1 Interest receivable on notes 60,000 383,471 Due li om other finds (Note 12) 612,986 - Due Gonr other governments 1,206,915 - Due Tom Successor Agency (Note 12) 434,897 38,536.786 Prepaid items 1,070,606 - Land held lot resale - 48,368 '1°0MLASS] IS S 17;118,135 $ 5(1.246,878 LIAI311.11 ]FS AND FUND BAT ANC'P.S I..IAMITIT FS2 Accounts payable $ 2,877 426 $ 537308 Accrued liabilities 105,782 1.793 Olhel pavroll liabilities 12,919 - Depositsandolhet liabilities - - Due to other funds (Note 12) _ Delta ted revenue: merest on advance to other timds - 16,746346 Property tax - 1750,000 Notes receivable - 10,837,000 Interest on notes receivable 393,471 Other deferred revenue 1 089,620 - TO'IAL LIABILITIES 4,085,747 32,255,918 FUND BALANCES: Nonspendable: Due from Successor Agency 434,897 18,040,440 Prepaid items 1 070,606 - Land held lot resale - 48,368 Loans receivable 1000,000 - Endowment principal - _ Restricted for Debt service - _ Low and moderate income housing - _ General government - _ Public safety - _ Public services - _ Community services - _ Capital projects - _ Assigned to. Capital projects funds - - Sclu larships _ _ Unassigned al: General fund 10,826,885 - Special revenue finds - (97,848) Debt service finds - _ TOTAL FUND BALANCES 13,332,388 17,990,960 1'01-AL LIABILITIES AND FUND BALANCES $ 17,418,135 R 50,246,878 See independent auditors' report and notes to basic financial statements. -18_ Debt Service Funds 15,475,337 - - Public Other 'Dotal Redevelopment Financing Govenmientnl Governmental Agcno, A tit Ilot IIV Funds Funds 511,944 23,467,239 7 -30,727235 - (;6,149,396 703,068 66,852,464 - - - 723,406 - 290 16,464 19,280 - 58,580,1100 - 58,580,000 - - - 11.837,000 - - - 443.471 - - - 612,986 - 3,111,520 1,558,691 5,877,126 - - - 38,971,683 - - - 1.070.606 48.368 $ - $ 128,353,150 A 25745,462 $ 221,763,625 2,302,584 $ 5,717,318 - - 45,475 153,050 - 12,919 - - 9,512 9,512 - 5,737 607,249 612,986 - - - 16- 746,346 - - - 3,750.000 - - - 10,837,000 - - - 383,471 - - 1,57(5,(589 2,666,309 - 5,737 4,541,509 40,888,911 - - 15,475,337 - - 1,070.606 - - 48.368 58,580,0(1(1 - 59,580.000 - 20,003 20,003 69,767,413 2,341 69,769,754 - 67,349 67,349 - 352,026 352,026 - 4,910,991 4,910,991 - 1,756,863 1,756,863 - 2,435,730 2,435,730 - 11537,455 12,537,455 - 10,948 10,948 - - 10,826,885 - (871,507) (969,355) - (18,246) (18,246) 128,347,413 21,203,953 180,874,714 $ 128,353,150 $ 25,745,462 $ 221,763,625 - 19- THIS PAGE, INTENTIONALLY LEFT BLANK -20- Cl FY OF LAKE ELSINORE. CALIFORNIA RECONCILIATION OF "fH' GOVERNMENTAL. FUNDS BALANCI SIIP.P: I' TO'f1II: STA FFMFN'1 0E NE F ASSLIS June 30, 2012 Fund balances for governmental funds .$ 180,874,714 Amounts reported for govcrnmcntal activities in the Statement ofNet Assets ate diffcrent because: Intel fund loans receivable not repoi led in the Statement of Net Assets. (58,580,000) Capital assets used in governmental activities are not financial resources and. theicibic, Lite not reported in the funds. 147,951,102 Long -term liabilities applicable to the City govcrnmcntal activities are not due and payable in the current period and accordingly ere not reported as fund liabilities. Interest on long -term liahilities is not accrued in governmental fends, but rather is recognized as an expenditures when duc. Unamottlzed bond issuance costs arc not current financial resources and tie not reported in the funds lonb lean 10,837,000 liabilities and unainiatized discount reported in the Statement of Net Assets are; 3,750,000 Deferred charges $ 3,256,587 Deflated amount on refunding 407,900 Bond premium (175,377) Intcrest puyable (9897421) Lome term liabilities (80,161,452) (77,661,763) Long -teen assets arc not available to pay for current period expenditures and, therefore, arc deferred in the fund financial statements Interest receivable $ 1,151,115 Due from other governments 2,619,629 3,770,744 Note and other receivables, interest on inteafund loans reported in the special revenue funds arc not available soon enough to pay lot curem- period expenditures, and therefore they are reported as deferred revenue in the funds. The receivables and interest are: Notes receivable $ 10,837,000 Other receivable 3,750,000 Interest on notes receivable 383,471 ]merest on interfund loans 16,746,346 31,716,817 Net assets of governmental activities $ 228,071,614 See independent auditors' report and notes to basic financial statements. 21 - CI 'I Y OF LAKE IZLSINORB. CAT AFORNIA St A'I'P,MEN F OF R VENUI. S. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAI. FUNDS For the year ended .June 30, 2012 EXPENDYRJR I'S : Special Revenue BEFORE EXTRAORDINARY ITEM General government Fund Public safety 11,306,665 - Low and Moderate 1,486,755 - Gene nl Income )lousing RP.VIr.NUES. Fund Asset Propeny taxes A 5,287.580 A - Othertases 9,911,400 - Licenses, permits and lees 1,660,973 _ - In Let revenues 128,322 - Cltargeslitrsemces 1,374,351 - Fines, fhrl'einues and penalties 1,530,221 Investment Income 242,769 - Special assessments - _ Contribution tiom property owners - Miscellaneous 4,063,339 - '10'FAL IT] VENUES 24,198955 - EXPENDYRJR I'S : C [IT Cat BEFORE EXTRAORDINARY ITEM General government 6,300,767 - Public safety 11,306,665 - Community development 1,486,755 - Public services 1,393,247 - Community services 4,257,888 - Pass- tbrcugh payments _ - Capnal outlay - Debt set vice: $ 13,332,388 S Bond issuance costs See independent auditors' report and notes to basic financial statements. Principal retirement _ - Interest and fiscal charges - 96,055 TOTAL I XPENDIITIRES 24,745,322 96,055 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (546,367) (96,055) O'FIIPR FINANCING SOURCES (USES), Refunding bonds issued _ Payment to refunding bond escrow agent Discount on bonds _ T'ransters in 50.000 Transfers out (987,026) T0 'I Al. 0 T1117.R FINANCING SOURCES (USES) (937,026) N , (I IANGE IN FUND BALANCES. BEFORE EXTRAORDINARY ITEM (1,483,393) (96,055) EXTRAORDINARY IIEM: Gain (loss) from dissolution of Redevelopment Agency (Note 20) - 18,087,015 F C I CIiANGE IN FUND BALANCES (1,483,393) 17,990,960 FUND BALANCES (DEFICIT) - BEGINNING OF YEAR 14,815,781 - FUND BALANCES (DEFIC'.IT)- I =ND OF YEAR $ 13,332,388 S 17,990 -960 See independent auditors' report and notes to basic financial statements. -22- Dcbt service Ponds Public Other Total Redevelopment Financing, 6overn ill cntill (iovernmcnNl ABcncv Authority Funds FundS $ 2451.004 $ - $ - $ 14,738.584 - - 9,911,400 - - 1,247,118 2,908,091 - - 6,065,455 6,193,777 - - - 1,374,351 - - 320,177 1,850,398 212,552 6,328,028 396,669 7,180,018 - - 1,579.318 1,578,318 - - 1,221,184 1,221,184 1,915,594 425,465 980,351 7,384,749 11,579,150 6753493 11,809,272 54,340,870 771,339 169,296 227,353 7,467,755 - - 604,699 11,911,364 - - 122.027 1608,782 - - 6,406,848 7,800 095 - - 1,705,985 5')63,973 3,542,473 - - 3,542,473 7,479 - 10 261,274 10,268,753 - 238,290 - 238,290 1,081,578 3,945,000 1,065,000 6,091,579 1,686,439 5,853,817 315,660 7,951 971 7,089,308 10,205,403 20,708,846 62,84a 934 4,489,842 (3,451,910) (8,899,574) (8,504,064) - 1,405,000 - 1,405,000 - (1,345,000) - (1,345,000) - (30,000) - (30,000) - - 2,459,613 2,509,613 (684,405) - (838,182) (2,509,613) (684,405) 30,000 1,621,431 30,000 3,805,437 (3,421,910) (7,278,143) (8,474,064) 20,922,587 - (27,300,611) 11,708,991 24,728,024 (3,421,910) (34,579,754) 3,234,927 (24,728,024) 131769,323 55,782,707 177,639,797 $ - $ 128,347,413 .$ 21,203,953 ,X 180,874,714 _23_ CITY OP LAKI ELSINORI- CALIFORNIA RECONCILIATION OF'1'1IE GOVERNMENTAL FUNDS STATEMENT OF RGVI N11GS, GXPLiNDITURI3S AND C1fANGGS IN FUND (3ALANCI�S "fO "Ilil: S'hA'FLM GN9' OF ACl'IVIII L'.S For the vear ended .June 30- 2012 Net change in fund balances - tot al,, oven ill cat wl funds $ 3,234,927 Amounts reported fill governmental activities in the S Late ill ent oCActw ill es are dilfeent because. Governmental binds report capital oullays as an expenditure io the full amount its current financial resources are used. Howevei, in the Statement of Activities the cost of these assets is allocated over the estimated useful life as depreciation expense. Capital outlay $ 10,222,252 Depreciation expense (5,555,742) 4,666,510 'Ilse issuance oflong teen debt provides anrcnt financial resources to governmental funds, while the repayment of tile principal ol'long tcmn -debt consumes the curtent financial resources of govemmenlal ftmds. Neither transaction, however; has any effect on net assets. These amounts are the ncl effect of these differences in the trcatnnenl of long -term debt. Long -term debt principal payments $ 6234783 Refunding bonds issued (1A 05,000) Payment to refunding bond escrow agent 1,345,000 Deferred annount on reloading 177,787 Issuance costs 238,290 6,590,860 Some expenses reported in the Statement of Activities do not require the use of current financial resources and are not repotted as governmental fund expendittues. Amortization bond issuance costs $ (356.449) Annorti-rnlion bond premium 21 )22 Amortization of deRrred amount on refunding (116,186) Amortization of bond discount (27,255) Tamest and fiscal charges (696,367) Other post - employment benefit obligation (1,829,186) Compensated absences 35,797 (2,967,724) Sonne revenues reported in the Statement of Activities are not considered to be available to finance current expenditures and therefore are riot reported as revenues in governmental funds: Investment income $ 851,238 Taxes and intergovernmental revenue 464,731 Licenses, permits, fees and other revenue (391,934) 924,035 'I he City of Lalce Elsinore Redevelopment Agency was dissolved as of February I, 2012 pursuant to Assembly Hill Ix26 and 1484. Assets and liabilities of dissolved Agency as of February I, 2012 were transferred to the Successor Agency: Tt ansfer ofcapital assets, net of accumulated depreciation $ (11,508,283) Transfer of unammtized deferred amount on refunding and issuance premium (2,540,340) Transfer ofunanortized bond deferred changes (2,699,312) Transfer ofbond discounts (727,777) Transfer of interest payable 1,154,658 'I7ansfcr of Interfund loans to the Successor Agency 58,580,000 Transfer oflong -tern debt to the Successor Agency 7,732,379 49,991,325 Change in net assets ofgovemmental activities $ 62,439,933 See independent auditors' report and notes to basic financial statements. -24- CITY OP LAKE; FLSINORE, CALIFORNIA S'fA l'I'M]',N'f OF EIDt1CIAI2Y NIT ASSN'S FIDUCIARY FUNDS June 30, 2012 ASSETS Cash and investments Cash and investments with fiscal agents lnterest I cceivahle Due from other governments Land held for resale Defencd Charges Capital assets, not depreciated Capital assets, deprecialat. net I -OTAL ASSF.I'S LIABILITILS Accounts payable Deposits and other liabilities Due to other governments Loans payable to the City of lake l;lsinore Loans payable to the Low and Moderate Income Housing Asset Special Revenue Fetid Due to bondholders Interest payable Long -term liabilities: Due within one year Duc in more than one year 1-0'VAL LIABILITIES NET ASSETS (DEFICIT) I -IELD IN TRUST See independent auditors' report and notes to basic financial statements -25- Successor Agency to the City of Lake Fisinore Redevelopment Agency 'total Private Purpose Agency Trust Fund Funds $ 25,544,920 $ 3,143,039 5,274,137 41,307,883 496 364 - 409.183 6,088,480 - 2,63L926 - 2,426392 - 8,924379 - 50,890,730 $ 44,860469 1,624,306 $ 438,940 490789 1- 809,784 4.387,840 3,201,420 434,897 - 38,536,786 39,410,325 923,727 2,719,487 - 60,221,044 - 109,338,876 $ 44,860,469 $ (58,448,146) CITY OF LAKI I LSINORF:. CALIFORNIA STATEMEN't OF CHANGES IN FIMICIARY NJ-t ASSN "iS FIDUCIARY FUNDS For the period February I, 2012 ro June 30, 2012 See independent auditors' report and notes to basic financial statements. -26- Successor Agency to the City of Lake Elsinore Redevelopment Agency Private Purpose Tntst Fund ADDITIONS: Fax increment $ 5,246,477 Investment income 45.758 Other income 157,380 TOTAL, ADDITIONS 5,449,615 DEDUCTIONS: Contract services 547,434 Project Costs Debt Service: Principal retirenlent Interest 1,492,499 Depreciation expense 157.512 "TOTAL DEDUC'f1ONS 2, 197,445 CHANGE IN NE'f ASS] I'S BEFORE, EXTRAORDINARY ITEM 3252170 EXTRAORDINARY ITEM: Loss on dissolution of former Redevelopment Agency (Note 15) (61,700,316) CFIANG7 IN NET ASSII'S (58.448,146) NE "TASSI TS- FEBRUARY 1. 2012 - NEF ASSETS (DEFICIT) - END OF YEAR $ (58,448,146) See independent auditors' report and notes to basic financial statements. -26- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENT'S June 30, 2012 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) through the date of dissolution of February I, 2012, the Lake Elsinore Public Financing Authority (Authority) and the Lake Elsinore Recreation Authority (Recreation Authority). 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 ofthe 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 fi•om 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, except for the Agency which was dissolved February 1, 2012, has a June 30, 2012 year end. The following is a brief review of each component unit included in the primary government's reporting entity. See independent auditors' report. -27- CITY OF LAKE ELSINORF, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 1. REPORTING ENTITY AND SIGNIFICANTACCOUNTING 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 was 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 and a capital projects fund. The Agency was dissolved effective February I, 2012, as a result of California Assembly Bill Ix 26 (the Dissolution Act). See Note 20 for additional information. The Agency's financial transactions for the seven -month period from July 1, 2011 through January 31, 2012 are included in these financial statements. 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 fi-om 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. '1'be 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 fi-om 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 tinancial statement for each component unit previously described tray be obtained at 130 South Main Street, Lake Elsinore, California 92530. See independent auditors' report. -28- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO 13ASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIFS (CON 'FINUED): 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 fi-om 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 systern 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 fron the government -wide financial statements represents private purpose trust funds and agency funds. See independent auditors' report. -29- CITY OF LAKE ELSINORE', CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 I. REPORTING ENTITY AND SIGN IFICANTACCOUNTING 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 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. 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 reported under the nonspendable fund balance category. 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 propose, 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. See independent auditors' report. -30- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUE'D) June 30, 2012 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued): 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. The City's Fiduciary Funds consists of private purpose trust funds which are reported using the economic resources measurement focus and the agency funds which have no measurement focus, but utilizes the accrual basis for reporting its assets and liabilities. 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 Low and Moderate Income Housing Asset Special Revenue Fund is used to account for funds to be used for low and moderate income projects. Expenditures for this fund are restricted to low and moderate income housing 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 111 project areas. The Agency was dissolved effective February 1, 2012. 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. See independent auditors' report. - 31 - CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 I. REPORTING ENTITY AND SIGNIFICANTACCOUNTING POLICIES (CONTINUED): D. Fund Classifications (Continued): Major Governmental Funds (Continued): Additionally, the City reports the fallowing fund types: The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted by law or external agreements 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 Proiects Funds are used to account for financial resources to be used for the acquisition or construction of redevelopment projects and administrative expenses. The private Purpose Trust Fund is used to account for the activities of the Successor Agency to the Lake Elsinore Redevelopment Agency. The Agency Punds 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 $180,874,714 differs from "net assets" of governmental activities $228,071,614 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 Successor Agency (58 580.000) See independent auditors' report. -32- CITY OF LAKE ELSINORI, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 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. I lowever, the Statement of Net Assets allocates these capital assets as financial resources over their estimated useful life. Capital assets, net o1'depreciation Bond Issuance Costs 147 951 102 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 $ 3,451,311 Amortization (194,724) Unamortized bond issuance costs —3 256 587 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 $ (989,421) Long -term liabilities (80,161,452) Deferred amounts on refunding 407,900 Bond premium (175,377) Long -term debt transactions 80 918 350) See independent auditors' report. - 33 - CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 1. REPORTING ENTITY AND STGNIPICANT ACCOUNTING POLICIES (CONTINUED): E. Explanation of Differences between the Governmental Funds Balance Sheet and the Statement ofNet 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 $ 1,151,115 Due from other governments 2,619,629 Long—term receivables 3 770 Notes Receivable, Other Receivables and Interest Notes receivable, other receivables and interest on amounts due from the Successor Agency 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. Notes receivable $ 10,837,000 Other receivables 3,750,000 Interest on interfund loans 16,746,346 Interest on notes receivable 383,471 $_ 31.716,817 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. -34- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL S'rATEMENTS (CONTINUED) June 30, 2012 1. REPORTING EN'I'I`IY AND SI(iNIFICANT 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 $3,234,927 differs From the "change in net assets" for governmental activities $62,439,933 reported in the Statement of Activities. The differences arise primarily from the long -term economic focus of the statement ofactivities 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 $ 10,222,252 Depreciation expense (5,555,742) ..... _._4 6.66,510 Lang -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 Refunding bonds issued Payment to reftnnding bond escrow agent Deferred amount on refunding Issuance costs Total long -term debt transactions See independent auditors' report. -35- $ 6,234,783 (1,405,000) 1,345,000 177,787 238,290 $ 6.590.860 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS ( CONTINUED) .tune 30. 2012 1. REPORTING ENTITY AND SIGNIF'1CANT 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 ofbond issuance costs 356,449) Braid Premium /Discount Bond premiums /discounts are reported as revenues /expenditures for the fill] 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 (27,255) __L.,3_3.3 ) 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 696 367) Deferred Amount 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 $ (116.186) See independent auditors' report. -36- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 1. REPORTING ENTITY AND SIGN IF[ CANT 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. Oilier post - employment benefit obligation $ (1,829,186) Compensated absences 35,797 S (_1,793,33 Interest on Long -Teem Receivables Interest on the long -term receivables from the Successor Agency to the City is not reported on the Statement of Activities. However, these revenues are reported as governmental fund revenues. Investment income $ 915,646 Interest on Investments in Local Obligations 'file 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 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 -$L-71M 797 See independent auditors' report. -37- CITY OF LAKE ELSINORE, CALIFORNIA NO "fES TO BASIC FINANCIAL, STATEMENTS (CONTINUED) Lune 30, 2012 1. REPORTING ENTITY AND SIGNIFICANTACCOUNTING 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): Dissolution of Redevelopment Agency The City of Lake Elsinore Redevelopment Agency was dissolved as of February I, 2012 pursuant to Assembly Bill 1x26 and 1484. Assets and liabilities of the dissolved Agency as of February 1, 2012 were transferred to the Successor Agency. Total amount transferred to the Successor Agency $49,991,325 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. 11. Investments: Investments are reported at fair value, except for the 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. See independent auditors' report. - 38 - CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL. STATEMENTS (CONTINUED) June 30, 2012 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): I. Ewployee 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 .tune 30, 2012 was $644,691. J. Interfund Activity: Activity between funds that are representative of lending /borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to /from other lands" (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 nonspendable fund balance 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. -39- CITY OF LADE FLSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL, STATEMENTS (CONTINUED) June 30, 2012 1. REPORTING ENTITY AND SIGNIFICANTACCOUNTING 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 I % of frill 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 ofJanuary 1. Taxes are levied on July 1, and are payable in two installments on November 1 and February 1. Such taxes becone delinquent on December 10 and April 10, respectively. See independent auditors' report. -40- CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 I. REPORTING ENTITY AND SIGN IFICANT 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. 2. CASH AND INVESTMENTS: Cash and Investments Cash and investments at June 30, 2012 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 $ 36,727,235 $ 28,687,959 $ 65,415,194 66,852,464 46,582,020 113,434,484 103.579.699 &__75.269.979 1178.849,678 Cash and investments at June 30, 2012 consisted of the following: Cash on hand Deposits with financial institutions Investments Total Cash and Investments See independent auditors' report. -41 - $ 1,300 6,658,285 172,190,093 $ 178,849,678 CITY OF LAKE ELSINORE', CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 2. CASH AND INVESTMENTS (CON'1'INUF.D): 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. Authorized Investment Type United States Treasury Obligations United States Government Sponsored Agency Securities State and Local Agency Obligations Banker's Acceptances Insured or Collateralized Time Certificate of Deposits Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements Reverse Repurchase Agreements Medium -berm Corporate Notes Local Agency Investment Fund (LAIF) California Asset Management Program (CAMP) Money Market Fund N/A - Not Applicable Maximum — Maturity 5 years 5 years 5 years 180 days Maximum Percentage of Portfolio* None None None 40% Maximum Investment in One Issuer None 40% None 10% 5 years None None 270 days 25% 10% 5 years 30% None 30 days None None 92 days 10% None 5 years 30% None N/A None $ 50,000,000 N/A None None 5 years 20% None * - Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. See independent auditors' report. -42- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 2. CASH AND INVESTMENTS (CONTINUED): 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 Agency 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. 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 Agency Securitics United States Treasury Notes United States Treasury Securitics Sate and Local Government Series Calitoi ma Asset Management Program Pool (CAMP) Mutual Funds See independent auditors' report. Remaining Maturitv fin Months) 12 Months 13 -24 25-60 More'llmn or Less Months Months 60 Months Total_ $ M7K694 $ - $ - S - $ 14,710,694 2,671,742 1947,064 11,669,252 40,932403 58,225,461 - 1,051,808 6,276,987 - 7,328,795 914,087 9,488,567 15,393,093 - 1,524,492 9,298,191 7,285 13,892 41,225 97,692 25,795,747 10,822,683 2,611,208 2,673,610 92692 52,535,411 52 535,411 7 Q,230 AI $ 15 025,82, $4L677 $ 43.548 611 :'172 19QM -43- CITY OF LAKE ELSINOIZE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 2. CASH AND INVESTMENTS (CON 'fINUED): 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 tl)e 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. ']'he 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. N/A - Not Applicable See independent auditors' report. mmimmll Not Legal Required to Racine _ AAA AA ..__other Ilnmted beRated N/A $ N/A AA N/A N/A N/A - s - S14710694 5 - 58,225,461 - 7,329,795 - - 25,795,747 - - - - - - 1(!_822683 2,673,610 N/A 97,692 AAA 52535411 - - - __5,7)SZ7 $_7,3�87U 32,43{_755 $ 1349 {�?9j $ _ 52633 103 03 � ° _ � ` _ _ -44- Tmal as of Invest, le n' m c htne 30 -,2012 Local Agency Invcsmtan Pend $ 14,710.fi94 Local Obl"a ion Bonds 5$225,461 Ccalxeae Notes 7,328,705 Called Slates 6 m sponsored Agency Securities 25,795,747 thilwd Slates 1) easuly Notes 10,822,683 Unilcd slates Treasury seanitles stale and Local Govemmcnl series 2,673,610 Cal i1'oram Asset Munagomcal Program Pool (CAMP) 97692 Mutual Fnnds 52535411 Total $_ 373,190093 N/A - Not Applicable See independent auditors' report. mmimmll Not Legal Required to Racine _ AAA AA ..__other Ilnmted beRated N/A $ N/A AA N/A N/A N/A - s - S14710694 5 - 58,225,461 - 7,329,795 - - 25,795,747 - - - - - - 1(!_822683 2,673,610 N/A 97,692 AAA 52535411 - - - __5,7)SZ7 $_7,3�87U 32,43{_755 $ 1349 {�?9j $ _ 52633 103 03 � ° _ � ` _ _ -44- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL, STATEMENTS (CONTINUED) June 30, 2012 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Credit Risk (Continued) The actual ratings for the Corporate Notes are as follows: Other AA+ $ 711,796 AA 180,508 AA- 1,273,805 Ad- 1,051,808 A 4.110.878 $_ 7,328,795 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: Community Facilities District 88 -3 West Lake Elsinore Community Facilities District 98 -1 Bonds Custodial Credit Risk Reported Investment Type Amount Local Obligation Bond $ 18,600,000 Local Obligation Bond 17,440,000 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. See independent auditors' report. -45- CITY OF LAKE F1SINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 2. CASH AND INVESTMENTS (CONTINUED) Custodial Credit Risk (Continued) 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 I50% of the secured public deposits. At June 30, 2012, City deposits (bank balances) were fully insured by the Federal Depository Insurance Corporation. 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. Investment in California Asset Management Program The California Asset Management Program (the CAMP) is a public joint powers authority which provides California Public Agencies with investment management services for surplus funds and comprehensive investment management, accounting and arbitrage rebate calculation services for proceeds of tax - exempt financings. The CAMP currently offers the Cash Reserve Portfolio, a short -term investment portfolio, as a means for Public Agencies to invest these finds. Public Agencies that invest in the Pool (Participants) purchase shares of beneficial interest. Participants may also establish individual, professionally managed investment accounts (Individual Portfolios) by separate agreement with the Investment Advisor. The City has a separate account with the Investment Advisor to manage part of the CAMP portfolio. Investments in the Pools and Individual Portfolios are made only in investments in which Public Agencies generally are permitted by California statute. The CAMP may reject any investment and may limit the size of a Participant's account. The Pool seeks to maintain, but does not guarantee, a constant net asset value of $1.00 per share. A Participant may withdraw funds from its Pool accounts at any time by check or wire transfers. Requests for wire transfers must be made by 9:00 a.rrn. that day. Fair value of the Pool is determined by the fair value per share of the Pool's underlying portfolio. See independent auditors' report. -46- CITY OF LANG ELSINORF., CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 2. CASH AND INVESTMENTS (CONTINUED): Cash and Investment by Entity: Cash and investments held by entity at June 30, 2012 are as follows: Deposits at carrying amount (I) Petty cash and change drawer Local Agency Investment Fund Local Obligation Bonds Corporate Notes United States Government Sponsored Agency Securities United States Treasury Notes United States Treasury Securities Slate and Local Government Serics California Asset Management Program Pool (CAMP) Mutual Funds Total Cash and Investments City of Public Lake Successor Financing Recreation Elsinore Aeeno Authority Authority Total .�; 571,099 $ 5,901,760 9; 185,426 S - $ 6,658,285 1,300 - - - 1,300 9,776,358 4,607,818 326,518 - 14,710,694 - - 58.225,461 - 58.225.461 5.458,264 1,870,531 - - 7:328,795 16336,865 9,458,882 - - 25,795,747 7,168,878 3,0151805 - - 10,822,683 2.673,610 - - - 2,673,610 45,514 51178 - - 97,692 39335.053 5.274.084 7,923,933 2,341 52,535,411 %L£ L 360 ri )41 R 30 819.058 R 66.6C>1 338 1 2341 178 849 67 (I) Net of deposits in transit and outstanding warrants. 3. NOTES RECEIVABLE: The City has a note receivable in the amount of $1,000,000 from Pottery Court Housing Associates, L.P. dated December 9, 2009. The proceeds of the loan assisted with the development of the Pottery Court Affordable Housing Project. This loan was funded with HOPE VI grant funds from the United States Department of Housing and Urban Development. The loan is to be repaid with interest in arrears in annual installments on July 1, commencing on July I in the calendar year immediately following the calendar year in which the deed of trust securing the permanent loan is recorded in the official records of Riverside County. Absent prepayment or acceleration, the Borrower agrees to pay the loan in annual payments equal to 75 percent of the residual receipts as defined in the loan agreement. Notwithstanding any other provision, unless the loan is paid earlier, the outstanding principal and accrued unpaid interest is payable 55 years from the date of recording of the release of construction covenants. As of June 30, 2012, the release of construction covenants has not been recorded. At June 30, 2012, the total outstanding balance of $1,060,000 includes accrued interest of $60,000. See independent auditors' report. -47- CITY OF LAKE ILSINORE, CALIFORNIA NOTES TO BASIC 1=1NANCIA1, STATEMENTS (CONTINUED) June 30, 2012 3. NOTLS RECEIVABLE (CONTINUED): The City's Low and Moderate Income Housing Asset Special Revenue Fund has a note receivable in the amount of $9,737,000 from Pottery Court Housing Associates, L.P. dated March 10, 2011. The proceeds of the loan assisted with the acquisition of property and development of the Pottery Court Affordable Housing Project. The loan is to be repaid with interest in arrears in annual installments on July 1, commencing on July I in the calendar year immediately following the calendar year in which the deed of trust securing the permanent loan is recorded in the official records of Riverside County. Absent prepayment or acceleration, the Borrower agrees to pay the loan in annual payments equal to 67.5 percent of the residual receipts as defined in the loan agreement. Notwithstanding any other provision, unless the loan is paid earlier, the outstanding principal and accrued unpaid interest is payable 55 years from the date of recording of the release of construction covenants. As of June 30, 2012, the release of construction covenants has not been recorded. At June 30, 2012, the total outstanding balance of $10,102,138 includes interest of $365,138. The City's Low and Moderate Income housing Asset Special Revenue Fund has a note receivable in the amount of $1,100,000 from LMV 11 Affordable, LP dated October 12, 2010. The proceeds of the loan assisted with the rehabilitation of 64 units of affordable housing for families of the Lakeview II Affordable Housing Project. The loan is to be repaid with interest in arrears in annual installments on July I, commencing on July I in the calendar year immediately following the calendar year in which the deed of trust securing the second permanent loan is recorded in the official records of Riverside County. Absent prepayment or acceleration, the Borrower agrees to pay the loan in annual payments equal to 30 percent of the residual receipts as defined in the loan agreement. Notwithstanding any other provision, unless the loan is paid earlier, the outstanding principal and accrued unpaid interest is payable 55 years from the date of recording of the release of construction covenants evidencing completion of the rehabilitation. As of June 30, 2012, the release of construction covenants has not been recorded. At June 30, 2012, the total outstanding balance of $1, 1 18,333 includes accrued interest of $18,333. See independent auditors' report. -48- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 4. CAPITALASSETS: A summary of changes in the Governmental Activities capital assets at June 30, 2012 is as follows: Capital assets, not depreciated: Land Construction in progress Total capital asses, not depreciated Capital assets, depreciated: Building and structures Improvements other than buildings Machinery and equipment Furniture and fixtures Automotive equipment I n fi astructurc 'total capital assets, depreciated Less accumulated depreciation tor: Building and structures Improvements other than buildings Machinery and equipment Furniture and fixtures Automotive equipment Initastructure Total accumulated depreciation Total capital assets, depreciated, net 'Total Governmental Activities capital assets, net l3alance at Balance at June 30, Transfers June 30, 2011 Additions Deletions (a) 2012 $ 5,352,814 $ - $ 2,561933 _.. 9.501 953 _ 7 914 547 9501.953 30,605,918 310,284 8,310,251 - 3,390 939 20,541 625,898 90,234 2,009,465 - 182.261.982 380.481 $ (2,426,392) $ 1926,422 12.063.686 (2.426392) 14.990.108 - (14,251,444) 16,664,778 - (349,940) 7,960,311 (61,050) (972,376) 2,378,054 (996) 715,136 (20,188) - 1,989,277 - 181642.463 227.204.473 810.540 (81.238) 1( 5,574 7, 56) 212.350,019 (8,837,382) (555,477) - 5335,487 (4,057,372) (4,607,223) (248,747) - 184,006 (4,671,964) (2,1180520) (139,246) 59,934 972,376 (1,787,456) (510,315) (38,524) - 996 (547,843) (1,583,676) (267,050) 20,188 - (1,830,538) (62.107.029) (4 386,823) - - (66.493 852) (80.326.145) (5.635,867) 80.122 6.492,865 (79,389,025) 146.878.328 (4.834.327) (I 116) _(9.081,891) 132,900994 $1 S4,792_875 8.___4,667626 (1,1,10 �1150b'83) $147951102 (a) The net transfer of $11,508,283 relates to the transfer of capital assets to the successor agency from the former redevelopment agency. See Notes 20 and 21 for additional information. See independent auditors' report. -49- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO 13ASIC FINANCIAL STATEMENI'S (CONTINUED) June 30, 2012 4. CAPITAL ASSETS (CONTINUED): Depreciation expense was charged to functions /programs in the Statement of Activities as follows: Governmental Activities: General government $ 2,555,045 Public services 2,034,669 Community services 1,046,153 Total depreciation expense y C35 867 5. LAND HELD FOR RESALE: The former Redevelopment Agency of the City of Lakc Elsinore ( "Agency ") acquired land for development. As a result of the dissolution of the Agency, $6,088,480 in land held for resale was transferred to the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore's private - purpose fiduciary trust fund and $48,368 was retained by the City and reported in the Low and Moderate Income Housing Asset Special Revenue Fund. The land is being carried at the lower of cost or net realizable value. See Note 20 for additional information regarding the dissolution of the Agency. 6. LOANS RECEIVABLE: The Lake Elsinore Public Financing Authority ( "Authority ") entered into loan agreements with the former Redevelopment Agency of the City of Lake Elsinore ( "Agency ") whereby the Authority loaned the proceeds of the 2010 Series A, B and C Tax Allocation Revenue Bonds and the 2011 Series A Tax Allocation Bonds issued by the Authority to the Agency to retire debt and provide funds for certain public improvements in Agency project areas. As a result of the dissolution of the Agency, the obligation to pay the loans to the Authority was transferred to the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore ( "Successor Agency "). The principal and interest are payable in installment payments payable not less than three days prior to the due date on the related bonds payable. (See Note 8). These loans are recorded as a receivable in the Authority's Debt Service Fund on the Governmental Fund Balance Sheet. For the Government -Wide financial statements, the loan receivable is eliminated. See independent auditors' report. -50- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 6. LOANS RECEIVABLE (CONTINUED): The following table represents the outstanding balance of loans receivable from the Successor Agency at June 30, 2012: The loans have not been challenged as enforceable obligations of the Successor Agency by the California Department of Finance. The Authority expects repayment of these loans from property tax revenues allocated to the Successor Agency. See Note 20 for additional information related to the dissolution of the former Redevelopment Agency. 7. LONG-TERM LIABIL,ITIIS: Local Agency Revenue Bonds: 1996 Series P. 1999 Series G 2003 Series 1 -1 2008 Series A 2008 Series B 2010 Series A 2011 Series A 2011 Series B Fax Allocation Revenue Bonds: 2010 Series A 2010 Series B 2010 Series C 2011 Series A Date ol- Loans Tax Allocation Receivable Revenue Bonds Balance 2010 Series A Issue $ 14,450,000 2010 Series B Issue 9,795,000 2010 Series C Issue 28,785,000 2011 Series A Issue 5,550,000 Total $ 58,580,000 The loans have not been challenged as enforceable obligations of the Successor Agency by the California Department of Finance. The Authority expects repayment of these loans from property tax revenues allocated to the Successor Agency. See Note 20 for additional information related to the dissolution of the former Redevelopment Agency. 7. LONG-TERM LIABIL,ITIIS: Local Agency Revenue Bonds: 1996 Series P. 1999 Series G 2003 Series 1 -1 2008 Series A 2008 Series B 2010 Series A 2011 Series A 2011 Series B Fax Allocation Revenue Bonds: 2010 Series A 2010 Series B 2010 Series C 2011 Series A Date ol- Years of Rate of Amount Issue Mutm_ity__ Interest Authorized 10,855,000 11/10 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% -430% 22,295,000 3/08 2008 -2038 4.5 %- 6.875% 1265,000 11 /10 2013 -2040 3.25% -6.25% 7,430,000 6/11 2012 -2038 3.00 % - 6.125% 5,365,000 11 /11 2012 -2026 1.75"U-5.50% 1,405000 See independent auditors' report. 2/10 2010 -2033 200% -5.25% 15,435,000 5/10 2010 -2025 2.00 % -4.75% 10,855,000 11/10 2011 -2030 2.00% -5.00% 29,435,000 1/11 2012 -2021 4.00% -6.00% 5,550,000 51- CITY OF LAKE F.LSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS ((.-,ONTINUED) June 30. 2012 7. LONG -TERM LIABILITIES (CONTINUED): Date of Ycars of Rate of Amount Issue Maturity Interest Authorized Subordinate 'Pax Variable Allocation Revenue 1995 -2012 Bonds: 2,200,000 2011 Series Project Area 11 4/11 2011 Serics Project Area III 4/11 Revenue Refunding 2,140,000 Bonds: 2.70% -6.00% 2000 Series A 7/00 Developer Agreements: Wal -Mart Stores, Inc. 3/93 Oak Grove Equities 3/93 Outlet Center 12/89 Loans Payable: EVMWD Amber Ridge 2/95 2011 -2033 3.60 % - 7.65°/ 3,260,000 2011 -2038 160% - 7.65% 1350.000 2005 -2032 Variable 15,660,000 1995 -2012 7.00% 2,200,000 1996 -2016 7.00% 1,800,000 1996 -2015 N/A 2,140,000 1995 -2014 2.70% -6.00% 867,574 See independent auditors' report. -52- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATLMLNTS (CONTINUED) June 30, 2012 7. LONG-TERM LIABILITIES (CONTINUED): See independent auditors' report. -53- Outslandmg outstanding DuC June 30, 1Tanste's June 30, Within 2011 Additions Retirements In) 2012 One Yea, Local Agency Revenue Bonds_ 1996 Scrics F $ 1,345,000 $ - .A ( 1,345,000) - 1999 Set es G 1,440 000 - (255,000) - 1,185,000 275,000 2003 Series 11 27,290,000 - (850,00(1) - 26,440,000 940,000 2008 Se," A 18,085,000 - (1,340,000) - 16,745,000 1,425,000 2008 Series 13 3,265,000 - - - 3,265,000 5,000 2010 Series A 7,430,000 - - - 7,43(1,(100 - 2011 Sale., A 5,36.,5,000 - - - 5,365,000 135,000 201 I SC,,Cs 13 - 1405,000 - - 1405,000 85000 la, Allocation Revenuc Bonds. 2010 Scrics A 14,755,000 - (30i000) (14,450,000) - - 2010 Series 11 10,340,000 - (545,0(0) (9,795,000) - - 2010 Series C 20,435,000 - (650,00(1) f28,785,000) - - 2011 Series A 5,55(1,000 - (5,550000) - - SuNuclinateTaeAllocation Roads: 2011 Series Project Area II 3,260,000 - - (3,260,000) - - 2011SeriesProlectArealll 1350000 - _ -_. _(1350000) _ — ..__.._. -- 128,910000 1,405,000 (5,2911,0110) (63,190,000) 61,835,000 2,865,000 Add (less) dcl'eoed funnunts: Rondprmium 197,299 - (21,922) - 175,377 On retunding (2,886,639) (177,787) 116,186 2,540,340 (407,900) - Discount on bonds _ 1755.032) - 27,255 727,777 125,465,628 1,227,213 (5,168,481) (59,921,883) 61 602,477 2,865,000 Revenue Refunding (3ouds: 2000 Series A 13,365 000 - (390,000) - 12 975 (100 410,000 Developer Agreements: Wal -Mart scores, Inc. 263,362 - (203,142) (60,220) - - Oak Grove Equities 2,393,231 104,146 - (2,497,377) - - Outlet Center 414,172 - - (414,172) - - Loan Payable: EVMWD Amber Ridge 204,046 - (53,436) (150,610) - - Other post - employment benefit obligation (Note 17) 2,877,575 2,256,753 (427,567) - 4,706,761 - Compensated absences 609,894 35 797 - - 644,691 64,46 A 145 591 908 $ _3,623 909 (6 04 ,G) A _ _(6' 044 2(,521 79 928 929 __3.339,46 (a) The transfers relate to the transfer of long -term liabilities to the Successor Agency from the former the redevelopment Agency. See Notes 20 and 21 for additional information. See independent auditors' report. -53- CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 7. 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 former Redevelopment 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 froth October 1, 1997 through October I, 2026; interest at 5.25% to 7.50 %. ']'he bonds maturing on or before October 1, 2005, are not subject to optional redemption prior to maturity. The bonds maturing on or after October I, 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 I, 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. The 1996 Series E Local Agency Revenue Bonds were refunded by the 2011 Series B Local Agency Revenue Bonds in November 2011 and retired in December 2011. See independent auditors' report. -54- CITY OF LAKE ELSINORE3, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUUM June 30, 2012 7. 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 G. 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, 2012, the Agency has a cash reserve balance for debt service of $118,517, which is sufficient to cover the Bond Indenture Reserve Requirement of $118,500. Future debt requirements for the 1999 Series G Local Agency Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 Totals Principal Interest $ 275,000 285,000 305,000 320,000 60,755 44,515 27,405 9,280 $ 1,185,000 $ 141,955- See independent auditors' report. - 55 - Tota I 335,755 329,515 332,405 329,280 1,326,955 CITY OF LAKE F.LSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL. STATEMENTS (CONTINUED) June 30, 2012 7. LONG -PERM 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 I, 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 I, 2014 in the case of bonds maturing October I, 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 I, 2027 in the case of bonds maturing October I, 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, 2012, the Authority has a cash reserve balance for debt service of $2,636,785, which is sufficient to cover the Bond Indenture Reserve Requirement of $2,636,508. Future debt requirements for the 2003 Series II Local Agency Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018-2022 2023 -2027 2028-2032 2033 -2034 Totals See independent auditors' report. Principal $ 940,000 1,055,000 1,160,000 1,280,000 1,165,000 6,660,000 4,055,000 6,580,000 3,545 000 I__ 26.440 ,000 -56- Interest Total $ 1,583,519 1,531,737 1,472,144 1,405,044 1,334,894 5,431,900 3,915,000 2,253,562 230,934 $ 19.158.734 $ x,523,519 2,586,737 2,632,144 2,685,044 2,499,894 12,091,900 7,970,000 8,833,562 3,775,934 $ 45.598.734 CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 7. 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 I, 2008 through September 1, 2020; interest at 3.5% to 43 %. The bonds are subject to call and redemption prior to their stated maturity commencing September 1, 2008 at specified redemption prices. At .June 30, 2012, the Authority has a cash reserve balance for debt service of $1,114,940, which is sutlicient to cover the Bond Indenture Reserve Requirement of $1,114,750. Future debt requirements for the 2008 Series A Local Agency Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018 -2021 Totals See independent auditors' report. Principal $ 1,425,000 1,515,000 1,620,000 1,720,000 1.830,000 8,635,000 Interest Total $ 643,948 588,710 526,010 459,210 388,210 731.215 $ 1 6.745._0.00 $ 3.337 303 -57- $ 2,068,948 2,1 03,710 2,146,010 2,179,210 2,218,210 9,366,215 X29.082,303 CITY OF LAKE, ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATE,ME,NTS (CONTINUED) June 30, 2012 7. 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 I, 2012 through September 1, 2038. Interest payments ranging from 4.5% to 6.875% are due from September 1, 2008 through September 1, 2038. The bonds are subject to call and redemption prior to their stated maturity commencing September 1, 2008 at specified redemption prices. At June 30, 2012, the Authority has a cash reserve balance for debt service of $308,896, 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, 2013 2014 2015 2016 2017 2018 -2022 2023 -2027 2028-2032 2033 -2037 2038-2039 Totals See independent auditors' report. PrinciDul Interest Total $ 5,000 10.000 15,000 20,000 30,000 245,000 490,000 795,000 1,100,000 555,000 9 _3 265 000 -58- 220,374 220,024 219,430 21 8,573 217,308 1,052,947 935,000 712,766 390,156 38.672 $ 4.225.250 $ 225,374 230,024 234,430 238,573 247,308 1,297,947 1,425, 000 1,507,766 1,490,156 593,672 $ 7,490,250 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 7. LONG -TERM LIABILITIES (CONTINUED): A. Local Agency Revenue Bonds (Continued): 2010 Series A In November 2010, $7,430,000 principal amount of 2010 Local Agency Revenue Bonds, Series A, was issued in accordance with the indenture described above. The bonds are due in annual installments of $10,000 to $735,000 from September 1, 2013 through September 1, 2040; interest at 3.25% to 6.25 %. The bonds are subject to call and redemption prior to their stated maturity commencing September 1, 2013 at specified redemption prices. At June 30, 2012, the Authority has a cash reserve balance for debt service of $743,126, which is sufficient to cover the Bond Indenture Reserve Requirement of $743,000. Future debt requirements for the 2010 Series A Local Agency Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018-2022 2023 -2027 2028-2032 2033 -2037 2038-2041 Totals Principal Interest Total 10,000 20.000 25,000 40,000 380,000 780,000 1,365,000 2,210,000 2,600,000 _7 430 000 See independent auditors' report. -59- $ 447,138 446,975 446,463 445,644 444,375 2,180,450 2,032,522 1,727,491 1,182,812 342,187 �.._..__ 9.696.057 $ 447,138 456,975 466,463 470,644 484,375 2,560,450 2,812,522 3,092,491 3,392,812 ._ 2,942,187 17 126 057 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 7. LONG -TERM LIABILITIES (CONTINUED): A. Local Agency Revenue Bonds (Continued): 2011 Series A In June 2011, $5,365,000 principal amount of 2011 Local Agency Revenue Bonds, Series A, was issued in accordance with the indenture described above. The bonds are due in annual installments of $135,000 to $370,000 from September I, 2012 through September 1, 2038; interest at 3.0% to 6.125%. The bonds are subject to call and redemption on and after their stated maturity commencing September 1, 2016 at redemption price equal to principal amount. At June 30, 2012, the Authority has a cash reserve balance for debt service of $427,588, which is sufficient to cover the Bond Indenture Reserve Requirement of $427,175. Future debt requirements for the 2011 Series A Local Agency Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018 -2022 2023 -2027 2028-2032 2033 -2037 2038 -2039 Totals See independent auditors' report. Principal Interest Total $ 135,000 140,000 145,000 145,000 155,000 865,000 1,100, 000 1,470,000 995,000 215,000 !=======565000 -60- $ 285,925 281,800 277,525 273,175 268,287 1,234,969 972,662 596,463 169,209 13,322 $ 4.373.337 $ 420,925 421,800 422,525 418,175 423,287 2,099,969 2,072,662 2,066,463 1,164,209 228,322 $ M38.337 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 7. LONG -TERM LIABILITIES (CONTINUED): A. Local Agency Revenue Bonds (Continued): 2011 Series 13 In November2011, $1,405,000 principal amount of 2011 Local Agency Revenue Bonds, Series B, was issued in accordance with the indenture described above. The bonds are due in annual installments of $75,000 to $120,000 from October, 2012 through October, 2026; interest at 1.75% to 5.50 %. The bonds are subject to call and redemption on and after their stated maturity commencing October 1, 2018 at redemption price equal to principal amount. At June 30, 2012, the Authority has a cash reserve balance for debt service of $139,113, which is sufficient to cover the Bond Indenture Reserve Requirement of $139,113. Future debt requirements for the 2011 Series A Local Agency Revenue Bonds are as follows: Year Ending .tune 30, 2013 2014 2015 2016 2017 2018 -2022 2023 -2027 Totals See independent auditors' report. Principal Interest Total $ 85,000 75,000 80,000 75,000 80,000 460,000 550,000 $ 61,594 59,912 57,874 55,556 52,838 207,031 76,738 146,594 134,912 137,874 130,556 132,838 667,031 626,738 1— 14405.000 S_ ._571 543 $ 1.976.543 -61 - CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 7. LONG -TERM LIABILITIES (CONTINUED): B. 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 ("it), 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 I, 2032; interest is variable. The bonds are subject to call and redemption prior to their stated maturity commencing February I, 2002, at specified redemption prices. Future debt requirements for the 2000 Series A Revenue Refunding Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018-2022 2023 -2027 2028-2032 Totals Principal Interest * $ 410,000 430,000 450,000 470,000 490,000 2,805,000 3,515,000 4.405,000 � 12 975,000 $ 9,083 8,795 8,495 8,179 7,851 33,792 23,026 9,524 ..__..._ 108,745 'Total $ 419,083 438,795 458,495 478,179 497,851 2,838,792 3,538,026 4,414,524 $-- 13.083.745 * 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, 2012 of 0.07% was used to calculate the future interest payments. See independent auditors' report. -62- CITY OF LAKE ELSINORE. CAIAJ'ORNIA NOTES TO BASIC FINANCIAL STATEMFNfS (CONTINUED) June 30, 2012 7. LONG -TERM LIABILITIES (CONTINUED): C. 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. D. Compensated Absences: Compensated absences are liquidated by the General Fund and are reported as a liability of the governmental activities. 8. LOANS PAYABLE TO PUBLIC FINANCING AUTHORITY: The City of Lake Elsinore's Public Financing Authority (the "Authority ") periodically issued Tax Allocation Revenue Bonds to finance projects of the former Redevelopment Agency of the City of Lake Elsinore ( "Agency ") and to provide funds for the various debt obligations of the Agency. The proceeds of the bonds were loaned to the former Agency pursuant to loan agreements with the Authority in the principal amount of the bonds. Principal and interest are payable in installment payments not less than three business days prior to the due date on the bonds. As a result of the dissolution of the Agency, the obligation to pay these loans was transferred to the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore ( "Successor Agency "). The loans made from proceeds of the tax allocation bonds issued by the Public Financing Authority are shown as debt of the Successor Agency. Redevelopment agency property tax increment was pledged for payment of the debt issued. The Department of Finance has not objected to these loans as enforceable obligations of the Successor Agency. Redevelopment property tax trust fund monies (formerly known as property tax increment) continues to be distributed to the Successor Agency to pay the debt service on these bonds. The loans payable to the Authority and the corresponding loan receivable in the Public Financing Authority Debt Service Fund are eliminated for the government wide financial statements. At June 30, 2012, outstanding principal under loan agreements between the Successor Agency and Authority totaled $58,580,000 based on 2010 Series A, Series B and Series C Tax Allocation Revenue Bonds and the 2011 Series A Tax Allocation Revenue Bonds as described below. Note 20 has additional information on recent changes affecting California Redevelopment Agencies. See independent auditors' report. -63- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 8. LOANS PAYABLE TO PUBLIC FINANCING AUT11ORITY (CONTINUED): 2010 Series A In February 2010, $15,435,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued by the Authority. Concurrently with the issuance of the bonds, 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 I, 2033; interest at 2.00% to 5.25 %. The loan balance at June 30, 2012 is $14,450,000. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $1,472,165 which is sufficient to cover the Bond Indenture Reserve Requirement. 2010 Series B In May 2010, $10,855,000 principal amount of Tax Allocation Revenue Bonds, Series B, was issued by the Authority. Concurrently with the issuance of the bonds, the principal amount was loaned to the Agency. The proceeds were used to advance refund $10,065,000 of outstanding 1995 SeriesA Tax Allocation Revenue Bonds. The advance refunding resulted in an economic gain of $757,319 and a decrease in cash flow expenditures 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 Series B loan is payable in annual installments of $515,000 to $895,000 from September 1, 2010 through September 1, 2025, and bears interest at 2.00% to 4.75 %. The loan balance at .tune 30, 2012 is $9,795,000. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $939,698 which is sufficient to cover the Bond Indenture Reserve Requirement. 2010 Series C In November 2010, $29,435,000 principal amount of Tax Allocation Revenue Bonds, Series C, was issued by the Authority. Concurrently with the bond issuance, the principal amount was loaned to the Agency. The proceeds were used to advance refund $27,495,000 of outstanding 1999 Series A Tax Allocation Revenue Bonds. Tax revenues from Project Areas I and 2 are pledged for the repayment of the loan. In the event that tax revenues are not sufficient from Project Areas I and 2, the Agency covenanted to make interfimd loans from Project Area 3 and the Low and Moderate Income Housing Fund to make the loan payment. The loan is payable in annual installments of $650,000 to $2,115,000 from September 1, 2011 through September 1, 2030, and bears interest at 2.00% to 5.00 %. The loan balance at June 30, 2012 is $28,785,000. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $2,222,773 which is sufficient to cover the Bond Indenture Reserve Requirement. See independent auditors' report. -64- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) ,tune 30, 2012 8. LOANS PAYABLE TO PUBLIC FINANCING AUTHORITY (CON "1'INUED): 2010 Series C (Continued) The advance refunding resulted in an economic gain of $1,653,015 and a decrease in cash flow expenditures of $2,252,722. Proceeds thorn the 2010 Series C 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 A bonds are legally defeased and are no longer a liability o1'the Agency. 2011 Series A In January 2011, $5.550,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued by the Authority. Concurrently with the bond issuance, the principal amount was loaned to the Agency. The proceeds were used to provide funding for a boat launch ramp project benefitting Project Area 1. Tax revenues from Project Area 1 are pledged for repayment of the loan. In the event that tax revenues are not sufficient front Project Area I, the Agency covenanted to make interfund loans from Project Areas 2 and 3 to make the loan payment. The pledge of Project Area 1 revenues to the loan is on a subordinate basis with respect to the 2010 Series C loan and on a parity basis with the 2010 Series A loan. The loan is payable in annual installments of $445,000 to $700,000 fi-om September 1, 2012 through September 1, 2021, bearing interest at 4.00% to 6.00 %. The loan balance at June 30, 2012 is $5,550,000. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $539,715 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, 2013 2014 2015 2016 2017 2018-2022 2023 -2027 2028-2032 2033 - 2036 Totals Principal $ 2,455,000 2,520,000 2,590,000 2,660,000 2,745.000 15,260,000 13,835,000 13,145,000 3,370,000 58,_580,000 See independent auditors' report. -65- Interest 2,402,558 2,333,745 2,262,351 2,187,611 2,105,426 8,868,563 5,655,348 2,602,269 177,712 $ 28,595,583 Total $ 4,857,558 4,853,745 4,852,351 4,847,611 4,850,426 24,128,563 19,490,348 15,747,269 3,547,712 175 CITY OP LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 9. SPECIALA SSESSMENT DISTRICT BONDS: 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 .tune 30, 2012, for which the City has no liability or commitment, follows: Assessment District No. 86 -1 Improvement Bonds Assessment District No. 90 -1 A Improvement Bonds Assessment District No. 93 -1 Refunding Improvement Bonds, Series 2000 Total Assessment District Bonds 10. COMMUNITY FACILITIES DISTRICT BONDS: Original Bonds Issue Outstanding at Amount June 30, 2012 $ 3,390,514 $ 1,283,058 1,780,000 795,000 19, 875,000 16,650,000 S 18.728.058. 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. See independent auditors' report. -66- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 10. COMMUNITY FACILITIES DISTRICT BONDS (CONTINUED): A summary of Mello -Roos Bonds outstanding at June 30, 2012 follows: See independent auditor' repot. -67- Original Bonds Issue Outstanding at Amount June 30, 2012 Community Facilities District 90 -2 Tuscany Hills Public Improvements 2002 Series $ 14,470,000 $ 6,465,000 Community Facilities District 95 -1 Lake Elsinore City Center Public Improvements 1,600,000 1,375,000 Community Facilities District 98 -1 Summerhill Public Improvements 17,660,000 17,440,000 Community Facilities District 2003 -2 Canyon Hills 2004 Series A 12,235,000 11,735,000 Community Facilities District 2004 -3 Rosetta Canyon 2005 Series A 22,635,000 22,055,000 Community Facilities District 2005 -1 Serenity 2006 Series A 9,180,000 8,770,000 Community Facilities District 2005 -2 Alberhill Ranch 2005 Series A 24,680,000 24,355,000 Community Facilities District 2005 -6 City Center Townhomes 2006 Series A 3,525,000 3,475,000 Community Facilities District 90 -2 Tuscany Hills Public Improvement 2007 Series A 7,340,000 7,340,000 Community Facilities District 2003 -2 Canyon I Tills 2006 Series A 20,570,000 20,180,000 Community Facilities District 2004 -3 Rosetta Canyon 2006 Series A 23,460,000 23,185,000 Community Facilities District 2006 -2 Viscaya 2006 Series A 7,290,000 7,185,000 Community Facilities District 88 -3 2008 Series A 24,670,000 18,600,000 Community Facilities District 88 -3 2008 Series A - Subordinate 7,175,000 6,325,000 Community Facilities District 2005 Wasson Canyon 2008 Series B 3,265,000 3,265,000 Community Facilities District 2003 -2 Canyon Ifills 2010 Series 7,430,000 7,430,000 Total Community Facilities District Bonds 189,180.000 See independent auditor' repot. -67- CITY OF' LAKE E ,SINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 11. MORTGAGE REVENUE BONDS: 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. Lakeside Village Project - Due January I, 2031 Original Bonds Issue Outstanding at Amount June 30, 2012 $ 5.000.000 $ 4.043M66 12. INTL=RFUND 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 /From Due to and from other funds at June 30, 2012 are as follows: Receivable Fund General Fund ___ Payable Fund Public Financing Authority Debt Service Fund Other Governmental Funds Amount 5,737 607,249 $ 612,986 The General Fund loaned the Public Financing Authority Debt Service Fund and Other Governmental Funds $5,737 and $607,249, respectively and the loans were used to provide cash Plows for expenditures. See independent auditors' report. -68- CITY OF LAKE ELSINORE, CALIFORNIA N07'ES'1'0 BASIC FINANCIAL STATEMENTS (CONTINUED) ,tune 30, 2012 12. INTERFUND RECEIVABLES /PAYABLES AND TRANSFERS (CONTINUED): Transfers In /Out The compositions of-tile City's interfund transfer balances as of June 30, 2012 are as follows: Transfers In Transfers Out Amount General Fund Other Governmental Funds $ 50,000 Other Governmental Funds General Fund 987,026 Redevelopment Agency Debt Service Fund 684,405 Other Governmental Funds 788,182 $_._...2,509,_61 The transfers between the General Fund and the Other Governmental Funds were made to provide cash flows for expenditures. The transfer of $684,405 between Oilier Governmental Funds and the Redevelopment Agency Debt Service Fund was made to fund operational and capital projects costs. 13. GOVERNMENTAL FUND BALANCE CLASSIFICATIONS: The Fund balances reported on the fund statements consist of the following categories: Nonspendable - This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact. Restricted -This classification includes amounts that can be spent only for specific purposes stipulated by constitution, external resource providers or through enabling legislation. Committed - This classification includes amounts that can be used only for the specific purposes determined by a formal action of the government's highest level of decision - malting authority, which is the City Council. Assigned - This classification includes amounts to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds, other than the general fund, assigned find balance represents the remaining amount that is not restricted or committed. Unassigned - This classification includes the residual balance for the government's general fund and includes all spendable amounts not contained in other classifications. In other funds, the unassigned classification is used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed or assigned. See independent auditors' repot. -69- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL, STATEMENTS (CONTINUED) .Tune 30, 2012 13. GOVERNMENTAL FUND BALANCE CLASSIFICATIONS (CONTINUED): When an expenditure is incurred for purposes for which both restricted and unrestricted fund balances are available, the City's policy is to apply restricted fund balance first. When an expenditure is incurred for purposes for which committed, assigned or unassigned fund balances are available, the City's policy is to apply committed find balance first, then assigned fund balance, and finally unassigned fund balance. 14. 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: The following funds had a deficit fund balance at June 30, 2012. These deficits are expected to be eliminated through future revenues and transfers. Amount Other Governmental Funds: Justice Assistance Grant Program Special Revenue Fund $ 13,126 Office of Traffic and Safety Special Revenue Fund 19,198 Miscellaneous Grants Special Revenue Fund 815,129 N.P.D.E.S. Special Revenue Fetid 24,054 Recreation Authority Debt Service Fund 15,905 See independent auditors' report. -70- Expenditures Appropriations Major Fund: General Fund - General government $ 6,300,767 $ 6,017,268 Other Governmental Funds: City -Wide Lighting and Landscaping Special Revenue Fund 1,496,163 1,275,000 Developer Agreement Revenue/Trust Special Revenue Fund 460 368 Community Center Special Revenue Fund 47,507 32,202 Developer Agreement Special Revenue Fund 460 368 Park Improvement and Development Capital Projects Fund 2,325 - Public Improvement In -Lieu Capital Projects Fund 10,213 The following funds had a deficit fund balance at June 30, 2012. These deficits are expected to be eliminated through future revenues and transfers. Amount Other Governmental Funds: Justice Assistance Grant Program Special Revenue Fund $ 13,126 Office of Traffic and Safety Special Revenue Fund 19,198 Miscellaneous Grants Special Revenue Fund 815,129 N.P.D.E.S. Special Revenue Fetid 24,054 Recreation Authority Debt Service Fund 15,905 See independent auditors' report. -70- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 15. PENSION PLAN: Plan Description The City contributes to the California Public Employees Retirement System (PERS), a cost sharing multiple- employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual cost -of living ad,jusUnents, 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 I, 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. Effective December 7, 201 I, employees are eligible for retirement at the age of 60 and are entitled to a monthly benefit of 2.01/0 based on average monthly compensations earned during the final three years of employment. 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 Wa eg s 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. -71 - CITY OF LAKE ELSINORE, CALIFORNIA NOTLS TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 15. 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, 2012, 2011 and 2010 were $20.148 %, 16.465% and 16.485 %, respectively. The City's contributions to CalPERS for the years ended June 30, 2012, 2011 and 2010 were $1,060,893, $922,645 and $1,022,973, respectively, and were equal to required contributions for each year. 16. 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 fi-om plan members. Contributions are funded on a pay -as- you -go basis. During the fiscal year ended June 30, 2012, the City elected to fund $427,567 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 GAS13 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 2011-12 was $1,709,128. See independent auditors' report. -72- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 16. OTHER POSI=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 Adjustment to OPEB Increase in net OPEB obligation Net OPEB Obligation - beginning of year Net OPEB Obligation - end of year Three -Year Trend Information $ 1,709,128 122,297 1,831,425 (427,567) 425,328 1,829,186 2,877,575 - 4746761 For fiscal year 2012, the City's annual OPEB cost (expense) of $1,709,128 was equal to the ARC. Information on the annual OPEB cost, percentage of Annual OPEB cost contributed, and Net OPEB Obligation is presented below: Fiscal Year Ended 6/30/10 6/30/11 6/30/12 Annual OPEB Cost $ 1356,199 1,170,664 1,831,425 Funded Status and Funding Progress Actual Contributions (Net of Adjustments $ 317,810 379,875 427,567 Percentage of Annual OPEB Cost Contributed 23.43% 32.45% 23.35% Net OPEB Obligation ion $ 2,086,786 2,877,575 4,706,761 As of July I, 2011, the second actuarial valuation date, the plan was zero percent funded. The actuarial accrued liability for benefits was $14,095,692 and the actuarial value of assets was zero, resulting in an unfunded actuarial accrued liability (UAAL.) of $14,095,692. The covered payroll (annual payroll of active employees covered by the plan) was $4,220,232 and the ratio of the UAAL to the covered payroll was 334.01%. See independent auditors' report. -73- CITY OF LAKE Ef,SINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 16. OTHER POST - EMPLOYMENT BENEFITS ((.',ONTINUED): 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, 2011 actuarial valuation, the frozen entry age method was used. The actuarial assumptions included a rate of return on assets of 4.25% per annum and a medical cost trend rates ranging from 5.0% to 9.5% 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. 17. 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. -74- CITY OF LAKE ELSINORE, CALIFORNIA NOTEIS TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 17. 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. 18. LIABILITY, PROPERTY AND PROTECTION: Description Self - insurance Pool Pursuant to Joint Powers Agreement The City is a member of the California Joint Powers Insurance Authority (Insurance Authority). The Insurance Authority is composed of 123 California public entities and is organized under a Joint powers agreement pursuant to California Government Code §6500 et scq. 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 lot- property and other lines of coverage. 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 Each member pays an annual contribution (formerly called the primary deposit) to cover estimated losses for the coverage period. This initial funding is paid at the beginning of the coverage period. After the close of the coverage period, outstanding claims are valued. A retrospective deposit computation is then conducted annually thereafter until all claims incurred during the coverage period are closed on a pool -wide basis. " ['his subsequent cost re- allocation among members based on actual claim development can result in adjustments of either refunds or additional deposits required. The total funding requirement for self - insurance programs is estimated using actuarial models and pre - funded through the annual contribution. Costs are allocated to individual agencies based on exposure (payroll) and experience (claims) relative to other members of the risk- sharing pool. Additional information regarding the cost allocation methodology is provided below. See independent auditors' report. -75- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 18. LIABILITY, PROPERTY AND PROTECTION (CONTINUED): Self-Insurance Programs of the Insurance Authority (Continued) General Liability Insurance - In the liability program claims are pooled separately between police and non - police exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $30,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $30,000 to $750,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $750,000 up to the reinsurance attachment point of $5 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $5 million to $10million are paid under a reinsurance contract subject to a $2.5 million annual aggregate deductible. Costs of covered claims from $10million to $15 million are paid under two reinsurance contracts subject to a combined $3 million annual aggregate deductible. On a cumulative basis for all 2011 -12 reinsurance contracts the annual aggregate deductible is $5.5 million. (6) Costs of covered claims from $15 million up to $50 million are covered through excess insurance policies. The overall coverage limit for each member including all layers of coverage is $50 million per occurrence. Costs of covered claims for subsidence losses are paid by reinsurance and excess insurance with a pooled sub -limit of $35 million per occurrence. This $35 million subsidence sub -limit is composed of (a) $5 million retained within the pool's SIR, (b) $10 million in reinsurance and (c) $20 million in excess insurance. The excess insurance layer has a $20 million annual aggregate. Workers' Compensation - In the workers' compensation program claims are pooled separately between public safety (police and fire) and non- public safety exposures. (1) The payroll of each member is evaluated relative to the payroll of other members. A variable credibility factor is determined for each member, which establishes the weight applied to payroll and the weight applied to losses within the formula. (2) The first layer of losses includes incurred costs up to $50,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the first layer. (3) The second layer of losses includes incurred costs from $50,000 to $100,000 for each occurrence and is evaluated as a percentage of the pool's total incurred costs within the second layer. (4) Incurred costs in excess of $100,000 up to the reinsurance attachment point of $2 million are distributed based on the outcome of cost allocation within the first and second loss layers. (5) Costs of covered claims from $2 million up to statutory limits are paid under a reinsurance policy. Protection is provided per statutory liability under California Workers' Compensation Law. See independent auditors' report. -76- CITY OF LAKE ELSINORF, CALIFORNIA NOTES TO 13ASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 18. LIABILITY, PROPERTY AND PROTECTION (CONTINUED): Self - Insurance Programs of the Insurance Authority (Continued) Workers' Compensation (Continued) Employer's Liability losses are pooled among members to $2 million. Coverage from $2 million to $5 million is purchased as part of a reinsurance policy, and lanployer's Liability losses fi-om $5 million to $10 million are pooled among members. Purchased Insurance Prouerk._ 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 $37,073,451. 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 o'f $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 years, none of the above programs of protection experienced settlements orjudgments that exceeded pooled or insured coverage. There were also no significant reductions in pooled or insured liability coverage in 2011-2012. 19. 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. -77- CITY OF LAKE FLSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) Lune 30, 2012 20. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES: On June 29, 2011, Assembly Bills Ix 26 (the "Dissolution Act ") and Ix 27 were enacted as part of the fiscal year 2011 -12 state budget package. The Dissolution Act required each California redevelopment agency to suspend nearly all activities except to implement existing contracts, meet already - incurred obligations, preserve its assets and prepare for dissolution. Assembly Bill Ix 27 provided a means for redevelopment agencies to continue to exist and operate by means of a Voluntary Alternative Redevelopment Program. The League of California Cities and the California Redevelopment Association (CRA) fled a lawsuit on July 18, 2011 on behalf of cities, counties and redevelopment agencies petitioning the California Supreme Court to overturn the Dissolution Act and Assembly Bill Ix 27 on the grounds that these bills violate the California Constitution. On December 29, 201 I, the California Supreme Court upheld the Dissolution Act and struck down Assembly Bill Is 27, resulting in the dissolution of all redevelopment agencies on January 31, 2012. On June 27, 2012, as part of the fiscal year 2012 -13 state budget package, the Legislature passed and the Governor signed AB 1484, which made technical and substantive amendments to the Dissolution Act. Under the Dissolution Act, each California redevelopment agency (each "Dissolved RDA ") was dissolved, and the sponsoring community that formed the Dissolved RDA or a designated local authority became the "Successor Agency" to the Dissolved RDA effective as of February 1, 2012. Each Successor Agency is required to wind down the affairs of the Dissolved RDA. On January 24, 2012, the City elected to serve as the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore. The Dissolution Act also created oversight boards which monitor the activities of the successor agencies. The roles of the successor agencies and oversight boards is to administer the wind down of each Dissolved RDA, including making payments due on enforceable obligations, disposing of the assets (other than housing assets) and remitting the unencumbered balances of the Dissolved RDAs to the County Auditor - Controller for distribution to the affected taxing entities. See independent auditors' report. -78- ary OP LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 20. RECENT CHANGF_S IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMI:;N 'I' AGENCIES (CONTINUED): The Dissolution Act allowed the sponsoring community that formed the Dissolved RDA to elect to assume the housing functions and take over the certain housing assets of the Dissolved RDA. if the sponsoring community did not elect to become the Successor Housing Agency and assume the Dissolved RDA's housing functions, such housing functions and all related housing assets were transferred to the local housing authority in thejurisdiction. AB 1484 modified and provided some clarifications on the treatment of housing assets under the Dissolution Act. The City elected on January 24, 2012 to serve as the 1lousing Successor Agency. The activity of the Agency through January 31, 2012 is reported in the governmental funds of the City. After the date of dissolution, the housing assets, obligations, and activities of the Agency have been transferred to, and are reported in a special revenue fund in the financial statements of the City. All other assets, obligations, and activities of the Agency have been transferred to, and are reported in a fiduciary fund (private - purpose trust fund) in the financial statements of the City. The transfer of the assets and liabilities of the Agency as of February 1, 2012 (except for certain assets of the former Low and Moderate Income Housing Fund, which were transferred to the Low and Moderate Income Housing Asset Special Revenue Fund) to the fiduciary fund is reported in the governmental funds as an extraordinary loss (or gain) in the governmental fund financial statements. The receipt of these assets and liabilities as of February 1, 2012 was also reported in the fiduciary fund as an extraordinary gain (or loss). Because of the different measurement focus of the governmental funds (eurreni financial resources measurement focus) and the measurement focus of the fiduciary private - purpose trust fund (econorniC resources measurement ,focus), the extraordinary loss (gain) recognized in the governmental funds was not the same amount as the extraordinary gain (loss) that was recognized in the fiduciary fund financial statements. See independent auditors' report. -79- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 20. RECENT CHANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES (CONTINUED): The difference between the extraordinary gain recognized in the fiord financial statements and the extraordinary gain recognized in the fiduciary fund financial statements is reconciled as follows: "Total extraordinary gain reported in governmental funds - increase to net assets of the Successor Agency Trust Fund $ 11,708,991 Deferred bond issue costs reported in the government -wide financial statements - increase to net assets of the Successor Agency Trust Fund (2,699,312) Capital assets reported in the government -wide financial statements - increase to net assets of the Successor Agency]) ust Fund (11,508,283) Accrued bond interest reported in the government -wide financial statements - decrease to net assets of the Successor Agency Trust Fund 1,154,658 Long -term debt including deferred amount on refunding and bond discounts reported in the government -wide financial statements - decrease to the net assets of the Successor Agency ]'rust Fund 63,044,262 Net decrease to net assets of the Successor Agency Trust Fund as a result of initial transfers (equal to amount of extraordinary gain reported in the government -wide financial statements of the City) t61 The Dissolution Act and AB 1484 also establish roles for the County Auditor - Controller, the California Department of Finance ("DOE") and the California State Controller's office in the dissolution process and the satisfaction of enforceable obligations of the Dissolved RDAs. The County Auditor - Controller is charged with establishing a Redevelopment Property Tax Trust Fund (the "RPTTF ") for each Successor Agency and depositing into the RPTTF for each six -month period the amount of property taxes that would have been redevelopment property tax increment had the Dissolved RDA not been dissolved. The deposit in the RPTTF fund is to be used to distribute to the Successor Agency funds required to pay the amounts due on the Successor Agency's enforceable obligations for the upcoming six -month period. See independent auditors' report. -80- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO I3ASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 20. RECENT CI IANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIF,S (CONTINUED): The Successor Agency is required to prepare a recognized obligation payment schedule ( "ROPS ") approved by the oversight board setting forth the amounts due for each enforceable obligation during each six month period covered by the ROPS (January through June and July through December). The ROPS is submitted to the DOF for approval. Once approved by DOT, the County Auditor - Controller will make disbursements to the Successor Agency from the RPTTF fund based on the ROPS amount approved by the DOF. The Successor Agency received $5,403,857 from the County Auditor - Controller on June 8, 2012 for the ROPS for the period July 1, 2012 to December 31, 2012. Under the Dissolution Act, as amended by AB 1484, the process of malcing RPTTF deposits to be used to pay enforceable obligations of the Agency will continue for so long as the Agency would have been entitled to collect tax increment. For the period January 1, 2011 through January 31, 2012, the Agency transferred $441,253 in cash and $49,437,544 in assets from the Low and Moderate Income Housing Fund to the City's Low and Moderate Income Housing Asset Special Revenue Fund in accordance with AB 1484 and Health and Safety Code Section 34176(x)(2). For the period January 1, 2011 through January 31, 2012, the Agency transferred assets of $12,073,008 from all other funds (excluding the low and moderate income housing fund) to the City of Lake Elsinore other than for payments for goods and services in accordance with applicable law and pursuant to enforceable obligations. For the period February I, 2012 through June 30, 2012, the Successor Agency transferred assets of $3,382,492 from all other funds (excluding the low and moderate income housing fund) to the City of Lake Elsinore other than for payments for goods and services pursuant to enforceable obligations listed on the ROPS and approved by DOF. AB 1484 required each Successor Agency to perform due diligence reviews to compute the amount of funds held by the Successor Agency which were not needed to pay for enforceable obligations and remit the amounts to the County of Riverside for disbursement to the taxing agencies. The due diligence reviews were performed separately for Low Income Housing Fund and for All Other Funds. The Low Income Housing Fund due diligence review resulted in $5,650,042 due to the County of Riverside which was paid on November 16, 2012. The Successor Agency's due diligence review for All Other Funds showed no balance due to the County of Riverside. DOE approved All Other Funds Due Diligence Review on February 26, 2013, and no funds were required to be transferred to the County of Riverside. See independent auditors' report. -81- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 20. RECENT CI IANGES IN LEGISLATION AFFECTING CALIFORNIA REDEVELOPMENT AGENCIES (CONTINUED): The California State Controller has been directed to review the propriety of airy transfers of assets between a Dissolved RDA and other public bodies that occurred after January I, 2011. If the transfers were not made pursuant to an enforceable obligation and the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency. The State Controller has not yet performed such review with respect to the City and the Agency. 21. SUCCESSOR AGENCY DISCLOSURES: The non - housing assets and liabilities of the former Redevelopment Agency of the City of Lake Elsinore ( "Agency ") were transferred to the Successor Agency to the Redevelopment Agency of the City of'Lake Elsinore ( "Successor Agency ") on February 1, 2012 as a result of the dissolution of the former Redevelopment Agency. The City is acting in a fiduciary capacity for the assets and liabilities. Disclosure related to these transactions is as follows: Loans Payable To City of Lake Elsinore Loans payable by the Successor Agency at June 30, 2012 are as follows: Receivable Fund General Fund Low and Moderate Income Housing Asset Special Revenue Fund Payable Fund Amount Successor Agency Private Purpose Trust Fund $ 434,897 Successor Agency Private Purpose Trust Fund 38,536,786 ,9_38 971 683 See independent auditors" report. -82- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC" FINANCIAL STA'T'EMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED) Loans Payable To City of Lake Elsinore (Continued) 1995 Loan From Housing Fund As of June 30, 2012, the Successor Agency owed the City, in its capacity as housing successor agency, $34,786,786. The loans were made from the Low and Moderate income Housing Asset Special Revenue Fund from the 1995 Series A and 1999 Series C bond proceeds pursuant to that certain Housing Fund Loan Agreement dated December 1, 1995. The loan proceeds were deposited into the Rancho Laguna Special Revenue Fund, and then subsequently loaned to each of the three project areas as interfund loans in accordance with the loan agreement. 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 loans payable include an original principal amount of $18,040,438 and accrued interest of $16,746,348. The loans from the Low and Moderate Income Housing Asset Special Revenue Fund are repayable from all available revenues of the Successor Agency after payment of senior indebtedness in accordance with the governing loan agreement. The issuer of the bonds sought court validation of the actions taken in connection with the 1995 Bonds under Code of Civil Procedure section 869, et seq. On November 14, 1995, the Superior Court of the State of California in and for the County of Riverside validated the 1995 bond issues and the interfund and housing fund loan agreements relating to payment of the bond debt. DOF has audited the 1995 Loan From Housing Fund as part of its review of the ROPS, and has not objected to the Successor Agency's repayment of the loan in accordance with the approved ROPS and applicable loan agreement. SERAF Advances Advances due to the City, in its capacity as housing successor agency, include the amount of $3,750,000 loaned a result of the suspension of a portion of the 20% set aside requirement to assist in the payment of the SERAF obligation for fiscal year 2010. This advance is to be repaid in installments beginning fiscal year 2014 -2015. Repayment of the SERAF advances are limited by a formula set forth in AB 1484, have a priority over repayment of certain other advances, and shall not be made prior to the 2013 -2014 fiscal year. See independent auditors' report. -83- CITY OF LAKE FL,SINORF, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Loans Payable To City of Lake Elsinore (Continued) City Bond Debt Service Advances Of the $434,897 due to the City General Fund, $146,069 constitutes advances made pursuant to an Agreement Regarding Advances dated as of July I, 2000 between the Agency and the City. Payments are payable from all available surplus revenues of the Successor Agency after scheduled debt service on bonded indebtedness of the Successor Agency in accordance with the Agreement Regarding Advances. DOE has audited the City Bond Debt Service Advances as part of its review of the ROPS, and has not objected to the Successor Agency's repayment of the loan in accordance with the approved ROPS and applicable loan agreement. Management believes, in consultation with legal counsel, that the obligations of the Dissolved RDA due to the City are valid enforceable obligations payable by the Successor Agency under the requirements of the Dissolution Act and AB 1484. Accordingly, the City has not recorded an allowance for uncollectible advances. DOE has audited the 1995 Loan From Housing Fund and the City Bond Debt Service Advances as part of its review of the ROPS, and has not objected to the Successor Agency's repayment of those loans in accordance with the approved ROPS and applicable loan agreements. See independent auditors' report. -84- CITY OF LAKE FILSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Capital Assets Capital asset activity for the period from February 1, 2012 through June 30, 2012 was as follows: Capital assets, not depreciated: Land Construction in progress Total capital assets, not depreciated Capital assets, depreciated '1'ranslcis (a) Balance at Fcb. I. 2012 Additions Deletions June 30, 2012 _ $ 2,426392 $ - $ - h 2,426392 2_426.392 - 2.426.392 Building and structures 14,251,444 - - 14,251,444 Improvements other than buildings 349.940 - - 349,940 Machinery end equipment 972376 - - 972,376 Fur 11MI C and fixtures 996 996 Total capital assets, depreciated 15.574,756 - - 15.574.756 Less accumulated depreciation for: Building and structures Improvements other than buildings Machinery and equipment Furniture and fixtures Toted accumulated depreciation (5,335487) (151,680) (184.006) (5,832) (97237(1) (6,492 865.) (157,512) (5,487,167) (189,838) (972,376) 996) (6,650, 377 Total capital assets, depreciated, net 9081.991 (157.512) - 8.924 ,379 Capital assets, net $ 11,508,283 (157,a12) _ - 1_1 50,771 (a) The transfers relate to the transfer of capital assets from the former Lake Elsinore Redevelopment Agency to the Successor Agency. See Note 20 for additional information. See independent auditors' report. - 85 - CITY OF LAKE F.LSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities See independent auditors' report. 86- Date of Years of Rate of Amount Issue Maturity Interest Authorized 'I ax Allocation Revenue Bonds: 2010 Series A 2/10 2010 -2033 2.00% - 5.25% $ 15.435.000 2010 Series 5110 2010 -2025 2.00 % - 4.75% 10,855,000 2010 series 10 /10 2011 -2030 2.00 % - 5.00 %, 29,435.000 201 1 Series A 1 / 1 1 20 12-202 1 4.00 % - 6.00 ° /) 5.550.000 Subordinatc],ax Allocation Revenue Bonds: 2011 Series Project Area 11 4/11 2011 -2038 various 3,260,000 2011 Series Project Area 111 4/11 201 1 -2038 various 1,350,000 Developer Agreements: Wal -Mart Stores, Inc. 3/93 1995 -2014 7.00% 2,200,000 Oak Grove Equities 3/93 1995 -2014 7.00% 1,800,000 Outlet Center 12/89 1996 -2015 N/A 2,140.000 Loans Payable: EVMWDAmberRidge 2/95 1999 -2014 2.70% -6.00% 867,574 See independent auditors' report. 86- CITY OF LADE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) Long -tern liability activity for the period from February I, 2012 through June 30, 2012 was as follows: Developer Agreements Wal -Mart stores, Ls. 60,320 - (60,220) Outstanding Due Due in 2,497,377 Transfers (a) 2,497.377 - .June 30, Within More Than - (119,075) Pell 1 2012 Additions Retirements 2012 -_, , - -, One year One Year 'I'as Allocalmn Revenue 13nnds_ FVMWD Ambcr Ridge 150,610 _._ - _ - ___„_- ,1-0610 55412 2010 S ell esA A 14,450,000 A - S - $ 14,450,000 $ 310,000 .R 14,140,000 2010 $cries 8 9,795,006 - - 9,795,000 560,000 9,235,000 2010 series C 28,795,000 - - 28,785,000 1,140,000 27,64i.000 2011 Seri el, A 5,550,000 - - 5,550,000 445,000 5,105,000 Subordinate Tax Allocation Roc (is 2011 Scrics Pmiect A rea IT 3,260,000 - - 3,260,000 70,000 3,190,000 2011 Series Project Area III 135000( 1350000 _20000 _ 1330000 63,190,000 - - 63,190,000 2,545,000 60,645,000 Add (less) deterred amounts: On refunding (2,540,340) - 56,095 (2484,245) - (2,484,245) Discount on honds (727777) - 19469 T70309) - (708308) 59,921,893 - 75,564 59,997,447 2,545,000 57,452,447 Developer Agreements Wal -Mart stores, Ls. 60,320 - (60,220) - - - Oak Glove talumcs 2,497,377 - - 2,497.377 - 2,497,377 Outlet Center 414,172 - (119,075) 295,097 119,075 176,022 Loan Payable_ FVMWD Ambcr Ridge 150,610 _._ - _ - ___„_- ,1-0610 55412 95,198 'f! .. =N (IA4, G2 I _ _- 4 _ — I 103 7 3 1 1 A 62 940 531 $;2_719.07 4. 07 22J�<L (a) The transfers relate to the transfer of long -term liabilities from the former the redevelopment agency. The Successor Agency of the Lake Elsinore Redevelopment Agency has assumed these liabilities as a result of the dissolution of the Redevelopment Agency. See Note 20 for additional information. See independent auditors' report. -87- CITY OF LARI ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL. STATEMENTS (CONTINUED) ,June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) A. Tax Allocation Revenue Bonds: 2010 Series A In February 2010, $15,435,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued. The term bonds are due in annual installments of $305,000 to $2,910,000 from September I, 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 I, 2024, at specified redemption prices. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $1,472,165, which is sufficient to cover the Bond Indenture Reserve Requirement of $1,459,146. Future debt requirements for the 2010 Series A Tax Allocation Revenue Bonds are as follows: Year Ending .tune 30. 2013 2014 2015 2016 2017 2018-2022 2023-2027 2028-2032 2033 Totals See independent auditors' report. Principal Interest $ 31000 315,000 325,000 330,000 345,000 1,895,000 2,330,000 5,230,000 3,370,000 14,45.0 000 - 88 - $ 679,081 669,707 660,106 651,106 641,806 3,019,578 2,566,963 1,823,062 177,713 $ 10.889.122 Total $ 989,081 984,707 985,106 981,106 986,806 4,914,578 4,896,963 7,053,062 3,547,713 $ 25.339,122 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) Jane 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) A. 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. The term bonds are due in annual installments of $515,000 to $895,000 from September I, 2010 through September I, 2025; interest at 2.00% to 4.75 %. The bonds are subject to call and redemption prior to their stated maturity commencing September I, 2019, at specified redemption prices. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $939,698, 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 30, 2013 2014 2015 2016 2017 2018-2022 2023 -2026 Totals Principal $ 560,000 575,000 590,000 610,000 630,000 3,475,000 3,355,000 $ 9.795 000 See independent auditors' report. -89- Interest Total $ 371,050 354,025 336,550 318,550 299,950 1,141,387 320,175 $ 931,050 929,025 926,550 928,550 929,950 4,616,387 3,675,175 $ . 0-87 $ 12.936,687 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) A. Tax Allocation Revenue Bonds (Continued): 2010 Series C In October 2010, $29,435,000 principal amount of Tax Allocation Revenue Bonds, Series C, was issued. The term bonds are due in annual installments of $650,000 to $2,115,000 from September 1, 2011 through September 1, 2030; interest at 2.00% to 5.00 %. The bonds are subject to call and redemption on or after their stated maturity commencing September 1, 2020, at redemption price equal to principal amount. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $2,222,773, which is sufficient to cover the Bond Indenture Reserve Requirement of $2,2223395. Future debt requirements for the 2010 Series C Tax Allocation Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018-2022 2023-2027 2028-2031 Totals Principal $ 1,140,000 1,165,000 1,190,000 1,215,000 1,240,000 6,770,000 8,150,000 7,915,000 $ 28.785,000 See independent auditors' report. -90- Interest "Total $ 1,065,814 1,042,764 1,019,214 994,404 965,995 4,219,084 2,768,211 779,206 $ 12.854 692 $ 2,205,814 2,207,764 2,209,214 2,209,404 2,205,995 10,989,084 10,918,211 8,694,206 $ 41,639.692 CITY OF LAKE E.LSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) ,Tune 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) A. Tax Allocation Revenue Bonds (Continued): 2011 Series A In January 2011, $5,550,000 principal amount of Tax Allocation Revenue Bonds, Series A, was issued. The term bonds are due in annual installments of $445,000 to $700,000 from September 1, 2012 through September 1, 2021; interest at 4.00% to 6.00 %. The bonds are subject to call and redemption on and after their stated maturity commencing September I, 2016, at redemption price equal to principal amount. At June 30, 2012, the Successor Agency has a cash reserve balance for debt service of $539,715, which is sufficient to cover the Bond Indenture Reserve Requirement of $539,623. Future debt requirements for the 2011 Series A Tax Allocation Revenue Bonds are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018-2022 Totals Principal $ 445,000 465,000 485,000 505,000 530,000 3,120,000 Interest Total $ 286,613 267,250 246,481 223,550 197,675 488,512 $ 5,550,000 $ 1.71 _0 08 t See independent auditors' report. -91 - $ 731,613 732,150 731,481 728,550 727,675 3,608,512 $ 7, 260,081 CITY OF LAKE ELSINORI, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) B. Subordinate Tax Allocation Revenue Bonds: 2011 Series Project Area It In April 2011, $3,260,000 principal amount of Subordinate Tax Allocation Revenue Bonds, Series 2011 Project Area 11 was issued to reimburse infrastructure costs to McMillin Summerly LLP under an Amended and Restated Disposition and Development Agreement dated March 8, 2011. The bonds were issued as a private placement offering to the developer. In connection with the bonds, the Agency has entered into a loan agreement with the Lake Elsinore Public Financing Authority to provide for funds for the Agency to purchase the bonds held by the developer. The term bonds are due in annual installments of $70,000 to $285,000 from September 1, 2012 through September 1, 2033; interest at 3.60% to 7.65 %. The bonds are subject to call and redemption prior to their stated maturity at specified redemption prices. Future debt requirements for the Subordinate Tax Allocation Revenue Bonds Series 2011 Project Area If are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2018-2022 2023 -2027 2028-2032 2033 -2034 Totals See independent auditors' report. Principal $ 70,000 75,000 80,000 80,000 85,000 520,000 735,000 1,065,000 550,000 3.260.00.0 -92- Interest Total $ 234,055 231,107 227,380 223,180 218,597 995,125 767,104 425,914 42,840 3365302 $ 304,055 306,107 307,380 303,180 303,597 1,515,125 1,502J04 1,490,914 592,840 $ 6 625.302 CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATIWENfS (CONTINUED) .Tune 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) B. Subordinate "Fax Allocation Revenue Bonds (Continued): 2011 Series Project Area III In April 2011, $1,350,000 principal amount of Subordinate Tax Allocation Revenue Bonds, Series 2011 Project Area 111 was issued to reimburse infrastructure costs to McMillin Summerly LLP under an Amended and Restated Disposition and Development Agreement dated March 8, 2011. The bonds were issued as a private placement offering to the developer. In connection with the bonds, the Agency has entered into a loan agreement with the Lake Elsinore Public Financing Authority to provide for funds for the Agency to purchase the bonds held by the developer. The term bonds are due in annual installments of $20,000 to $110,000 from September I, 2012 through September 1, 2038; interest at 3.60% to 7.75 %. The bonds are subject to call and redemption prior to their stated maturity at specified redemption prices. Future debt requirements for the Subordinate Tax Allocation Revenue Bonds Series 2011 Project Area III are as follows: Year Ending June 30, 2013 2014 2015 2016 2017 2019-2022 2023 -2027 2029-2032 2033 -2037 2038-2039 Totals Principal $ 20,000 20,000 20,000 20,000 25,000 140,000 195,000 285,000 410,000 215,000 $ 1,350,000 See independent auditors' report. -93- Interest Total $ 99,597 98,788 97,827 96,778 95,525 450,613 389,681 298,646 167,640 16.856 S- 1,811,951 $ 119,597 118,788 117,827 116,778 120,525 590,613 584,681 583,646 577,640 231,856 $ 3,161.951 CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) C. Developer Agreements: The former Redevelopment Agency of the City of Lake Elsinore ( "Agency ") 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 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 made each year on January 30`' 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. The obligation was paid in full as ofJune 30, 2012. Oak Grove Equities On March 12, 1993, the Agency entered into an Owner Participation Agreement with Oak Grove Equities. The Agency 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 30 °i for approximately 20 years, continuing 19 years after the first installment date. Installment payments are calculated to be (I) 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, 2012, the Successor Agency has set aside $2,497,377 for payment to Oak Grove Equities in accordance with the Agreement, which amount is included in long -term obligations. Any unpaid obligation on the 20'x' payment date, which is January 31, 2016, is to be forgiven and discharged. See independent auditors' report. -94- CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) .tune 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long'rerm Liabilities (Continued) C. Developer Agreements ((..ontinued): 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 -I. 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, 2012, the Successor Agency has set aside $295,097 for payment in accordance with the Agreement, which is included in long -term obligations. McMillin Summerly LLC On or about December 26, 2002, the Agency entered into a Disposition and Development Agreement (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 located in Project Areas II and 111. As a result of the bankruptcy of the managing member of Laing CP Lake Elsinore LLC, Bank of America foreclosed on the property subject to the DDA. Subsequently, Bank of America transferred the ownership of the property subject to DDA to McMillin Summerly LLC, who assumed the rights and obligations of the developer under the DDA pursuant to an Amended and Restated DDA entered into as of March 8, 201 I . In the DDA, the Agency pledged 100% of the net tax increment generated by the property subject to the DDA to the developer and master developer, excluding, without limitation, moneys to be set aside in the former low and moderate income housing fund and funds payable under pass through agreements. As of June 30, 2012, the Successor Agency has set aside $1,027,826 for payment to the developer and master developer when due pursuant to the terms of the DDA. These liabilities are presented as part of accounts payable in the Successor Agency Private Purpose Trust Fund. A portion of the tax increment pledge reimburses the developer for construction of certain extraordinary infrastructure associated with the project. Developer's reimbursement for construction of certain extraordinary infrastructure is limited to $19,000,000, as adjusted in accordance with the terms of the DDA. The Agency issued two subordinate tax allocation bonds 2011 Series totaling $4,610,000, the proceeds of which are used to reimburse the developer for construction of certain extraordinary infrastructure. Any unpaid reimbursement of extraordinary infrastructure is to be forgiven upon the expiration of the Agency's right to receive tax increment under its Redevelopment Plans for Project Areas 11 and HE The DDA prohibits further bonded indebtedness secured by tax increment generated by the project site, other than for specified project purposes. See independent auditors' report. -95- CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) ,Tune 30, 2012 21. SUCCESSOR AGENCY DISCLOSURES (CONTINUED): Long Term Liabilities (Continued) D. 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 agreed to reimburse 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 I, 1999 to July 1, 2014, and includes interest calculated from 2.70% to 6.00 %. Future debt requirements for the loans are as follows: Year Ending June 30 Principal Interest Total 2013 $ 55,412 $ 5,328 $ 60,740 2014 57,474 3,266 60,740 2015 37,724 1,113 38,837 Totals $ 0. 15 610 $ 9.707 -$- 160.317 Commitments and Con till gel) cies The Successor Agency has succeeded to the rights and obligations of the former Redevelopment Agency. The following represents the Successor Agency's significant commitments: Lake Elsinore Stadium The Successor Agency has succeeded to the Agency as the owner of Diamond Stadium. Diamond Stadium will require significant capital maintenance in future years. In addition, the Successor Agency will incur costs to operate and regularly maintain the Stadium. The cost of ongoing operation and maintenance of the Stadium will vary based on how long the Successor Agency owns the Stadium, how much costs to operate and maintain the Stadium vary over time, and what kind of capital outlay is required over time to maintain the Stadium in its current condition. Capital expenses could be substantial and cannot be estimated at this time. See independent auditors' report. -96- CITY OF LAKE ELSINORE. CALIFORNIA NOTES TO BASIC FINANCIAL STATEMCNTS (CONTINUED) June 30, 2012 22. JOINT POWERS AGREEMENTS: a. On March 28, 2000, the City agreed to enter into a join[ 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 Sam Jacinto Watersheds Authority lake water quality. As of June 30, 2012, the Authority had minimal activity and according to the criteria in Note I A, the Authority is not included in these financial statements. b. In November 2010, the City agreed to enter into a joint powers agreement with the County of Riverside, City of Canyon Lakc, City of Murrieta, City of Temecula and City of Wildomar to form the Southwest Communities Financing Authority (the Authority) to provide animal shelter services. The City contributes a prorated share ofthe Authority's debt service payments, costs of administrative services and operation of animal shelter- The City does not have measurable equity interest in the Authority. According to criteria in Note I A, the Authority is not included in these financial statements. c. In January 2004, the City entered into a joint powers agreement with the County of Riverside, the Cities of Banning, Beaumont, Calimesa, Canyon Lake, Corona, Hemel, Moreno Valley, Murrieta, Norco, Perris, Riverside, San Jacinto and Temecula to form the Western Riverside County Regional Conservation Authority (the Conservation Authority). The purposes of the Conservation Authority are to acquire, administer, operate and maintain land and facilities for ecosystem conservation and habitat reserve for certain endangered species. The City's contributions to the Conservation Authority consist of a development mitigation fee imposed on all new development. The City does not have measurable equity interest in the Conservation Authority. According to criteria in Note IA, the Conservation Authority is not included in these financial statements. See independent auditors' report. _97_ CITY OF LAKE ELSINORE, CALIFORNIA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2012 23. SUBSEQUENT EVENTS: In preparing these financial statements, the City has evaluated events and transactions for potential recognition or disclosure through March 27, 2013, the date the financial statements were available to be issued. In December 2012, the Lake Elsinore Public Financing Authority issued $5,345,000 Local Agency Revenue Bonds to acquire local obligations to acquire the City of Lake Elsinore Community Facilities District No. 2003 -02 (Canyon Ifills) Special Tax Bonds, 2012 Series to be issued by the City of Lake Elsinore Community Facilities District No. 2003 -2 for the benefit of Improvement Area C. The bonds bear interest at 2.0% to 4.75% with bonds maturing annually on September I annually through 2042. In November 2012, the Lake Elsinore Public Financing Authority issued $15,435,000 Local Agency Revenue Bonds to acquire local obligations to acquire the City of Lake Elsinore Assessment District 93 -1 (Assessment District 93 -1) Limited Obligation Refunding Improvement Bonds, 2012 Series A issued by the Assessment District 93 -1 to refund the 2000 Assessment District 93- (Bonds outstanding in the amount of $16,650,000.. The bonds bear interest at 2.0% to 5.125% with bonds maturing annually on September I annually through 2030. In July 2012, the Lake Elsinore Public Financing Authority issued $3,450,000 Local Agency Revenue Bonds to acquire the City of Lake Elsinore Community Facilities District (Villages at Wasson Canyon) 2005 -5 (CFD 2005 -5) Special Tax Bonds, 2012 Series A issued by the CFD 2005 -5 to redeem the CFD 2005 -5 2008 Series B Bonds outstanding in the amount of $3,265,000. The bonds bear interest at 1.5% to 5.25% with bonds maturing annually on September I annually through 2038. See independent auditors' report. -98- REQUIRED SUPPLEMENTARY INFORMATION _99_ CITY OF LAKE. HLSINORI" SCHEDULE OF FUNDING PROGRESS For the year ended Junc 30, 2012 OTHER POST - EMPLOYMENT BENEFITS PLAN See independent auditors' report. - 100- Actuarial Actuarial UAAL as a Accrued Value Of Unfunded Annual %of Actuarial Liability Assets AAL Funded Covered Covered Valuation (AAI,) (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% $ 5,280,551 166.490/(, 7/1/2011 $ 14,095,692 $ - $ 14,095,692 0.00% $ 4,220,232 334.00% See independent auditors' report. - 100- CITY OF LAKE 1 LSINORE. CALIFORNIA BUDGEFARY COMPARISON SCI- IBUDLE, REVENUES: Property taxes Other taxes Licenses, permits and fees Intergovermnental revenues Charges for services Fines. F01'ICitUI "es and penalties Investment income Miscellaneous " FOTAL REVENUES BXPENDI"IUR S: Current General government Public safety Commmnity development Public services Community services TOTAL FXPENDI'FIJRES EXCFSS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (tJSES): Transfers in Transfers out TOTAL OTHER FIANCING SOURCES (USES) NE`F CHANGE IN FUND BALANCE FUND BALANCE - BEGINNING OF YEAR FUND BALANCE - ENDOFYEAR GENERAL FUND For the year ended June 30. 2012 Vm"iance with Final Budget Budgeted Amounts Actual Positive Original Final Amounts (Negative) $ 5,745,000 $ 5,541,737 S 5,287,580 S (254,157) 9,377,000 9,510,000 9,911,400 401;400 1,665,050 1,608,027 1,6W973 52.946 284,307 125,457 128,322 2,865 1,601,490 1,640,058 1374351 (265,707) 4627000 1,312,000 1,530,221 218221 267,375 267,375 241769 (24,606) 3,508.600 3,669.700 4,063,339 393,639 22,91022 23,674354 24,198,955 524,601 5,693,513 6,017,268 6,30M67 (281499) 11,696,567 11,632799 11,306,665 326,134 1.469,004 1,595,747 1,486,755 108,992 1,551,514 1,581,009 1,393,247 187,762 3.865,402 4,620,690 0.257,888 362.802 24. 276,000 25,447,513 24.745322 702.191 (1,365,178) (1,773,159) (546367) 1,2267792 50,000 406,080 50,000 (356,080) - (826,005) (987,026) (161,021) 50,000 (419,925) (937,026) (517,101) (1,315,178) (2,193,084) (1,483,393) 709,691 14,815,781 14,815,781 14.815.781 - $ 13,500,603 $ 12,622.697 $ 13,332,388 $ 709.691 See independent auditors' report and note to required supplementary infonnation. - 101 - CITY OF LAKE ELSINORF, CALIFORNIA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2012 I. 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 I. 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. - 102- SUPPLEMENTARY INFORMATION -103- THIS PAGE INTENTIONALLY LEFT BLANK -104- CITY OF LAKE ELSINORE, CALIFORNIA OTHER GOVERNMENTAL FUNDS June 30, 2012 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. 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. PERMANENT FUND - ENDOWMENT TRUST is used to account for receipts used for payment of high school scholarships. - 105- CI "IY OP LAKE ELSINORE- CALIFORNIA COMBINING BALANCE SJIEE;F 01-HER GOVERNMENTAL FUNDS June 30, 2012 LIABILI'IIE.S Debt Set vice hcl'inallent total Accounts payable Special Fund Capital Fund Other Accrued babllitlCS Revenue Recreation rn>jects Endowment Governmental Deposits and other liabilities Funds Authunty Funds Trust Funds ASSETS 589,679 17,570 - - 607,249 Cash and investments $ 9,636,164 ,$ - $ 14,800,126 $ 30,949 $ 23,467,239 Cash and investments with fiscal agents - 2,341 700.727 - 703,068 Accrued receivable 13,760 - 2.702 2 16,464 Due lion) other govemments 1,558,317 - 374 - 1,558,691 TOTAL ASSETS $ 10,208,241 $ 2,341 $ 15,503,929 $ 30,951 $ 25.745,462 LIABILITIES AND FUND BALANCES - 2,341 - - 2.341 LIABILI'IIE.S Accounts payable $ 1,772,787 $ 676 $ 529 -121 .$ - $ 2,302,584 Accrued babllitlCS 43,852 - 1,623 - 45,475 Deposits and other liabilities 9,512 - - - 9,512 Due to other lilnds 589,679 17,570 - - 607,249 Deferred revenue 1,576,689 - - - 1.576,689 'DOTAL LIABILITIES 3,992,519 18,246 530,744 4- 541,509 FUND BALANCES (DEFICITS)_ Nonspendable. Endowment principal - - - 20003 20_,003 Restricted lot. Debt set vices - 2,341 - - 2.341 General government 67,349 - - - 67,349 Public safety 352,026 - - - 352,026 Public services 4,910,991 - - - 4,910,991 Community services 1,756,863 - - - 1,756,863 Capital projects - - 2,435,730 - 2,435,730 Assigned to: Scholarships - - - 10,948 10,948 Capital projects - - 12,537,455 - 12,537,455 Unassigned (871,507) (18,246) - - (889,753) TOTAL ITUND BALANCES(DEFICI) 6,215,722 (15,905) 14,973,185 30,951 21,203953 TOTAL LIABILITIES AND FUND BALANCES $ 10,208,241 $ 2,341 $ 15,503,929 .$ 30,951 $ 25.745.462 See independent auditors' report. 106- CITY O1 LAKE GI,SINOIil'.. CAl,li'ORNIA COMBINING SfA "I'l -WEN'h OF RFVF:N(JES. VXPL:NDI LURE'S. AND (l IANGE.S IN FUND BALANCES - 0 F l6R GOVERNMENTAL FUNDS For the year ended June 30. 2012 REVENUES Licenses, permits and fees Intel&oVermnental revenues Pines, forfeitures and penalties Investment income Special assessments Contribution from properly owncros MISCCIIalle016 TOTAL REVENUES I %XPF.NDITURES Current. General govcrnnlent Public sulcty Community development Public services Community services Capital outlay Debt sm ices_ Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES). 'I ransfers in 9Yansfers out 'I01 -AL OTHFR FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES, BEFORE EXTRAORDINARY ITEMS 103,391 Debt Service 119,980 Panwnent Total Special Fund Capital Pend Other Revenue Recreation Projects Eudowmcnt Govemmental Funds Aullnod(y funds Trust Funds 5,177,365 - 5,083,909 - 10,261,274 675,000 596,564 $ - $ 65M54 $ - $ 1,247,118 6,065 455 - - - 6,065,455 320,177 - - - 320,177 182,578 - 213,868 223 396,669 1,578,318 - - - 1,578,318 - - 1,22 1,184 - 1,221,184 22.457 409,066 548.828 - 990,351 8,765,549 409.066 2634,434 223 11,809272 103,391 3,982 119,980 - 227,353 604,699 - - - 604,699 122,027 - - - 122,027 1418,018 - 3,988,830 - 6,406,848 1,125,314 - 580,671 - 1,705985 5,177,365 - 5,083,909 - 10,261,274 675,000 390,000 - - 1,065,000 296,594 19,066 - - 315,660 10521408 413,048 9,773,390 - 20,708,846 (1,756,859) (3982) (7,138,956) 223 (8,899,574) 221,182 - 2,238,431 - 2,459,613 (817,028) - (21,154) - (838,182) (595.846) - 2,217,277 - 1,621,431 (2,352,705) (3,982) (4,921,679) 223 (7,278,143) EXTRAORDINARY ITEM: Loss on dissolution of Redevelopment Agency (25,398,018) - (1,902,593) - (27,300,611) NI'f CHANGE IN FUND BALANCES (27,750,723) (3,982) (6,824,272) 223 (34,578,754) FUND BALANCES (DEI--ICI'I ) - BEGINNING OF YEAR 33,966,445 (11.923) 21,797 457 30,728 55,782707 FUND BALANCES (DEFICIT) - END OFYEAR $ 6,215,722 $ (15,905) $ 14.973,185 $ 30.951 $ 21.203,953 See independent auditors' report. -107- CITY OF LAKE ELSINORE, CALIFORNIA OTHER SPECIAL REVENUE_ FUNDS ,tune 30, 2012 Supplemental Law Enforcement Service - to account for receipts and expenditures of money related to the citizens option for public safety grant. Justice Assistance Grant (J.A.G.) Program - to account for grant monies received from the U.S. Department of Justice Grant. Expenditures for this fund are restricted to local law enforcement. Office of'fraffic. 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 - Measure A - to account for revenues derived firom halt =cent sales tax and for expenditures to improve the City's transportation system in response to traffic congestion. TDA Article 3, SB821 Pedestrian Sidewalk - to account for expenditures financed by the Local Transportation Commission Article 3 grant program and use on bicycle and pedestrian facility projects. 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. City -wide Li >hting 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 within the District. Geothermal - to account for cash bond held by the City, as required by the State, for the City owned geothermal well. Interest earned is available for City use. AB2766 Air Pollution Reduction - to account for South Coast Air Quality Board receipts representing revenues collected by the Department of Motor Vehicles. The City is committed to spend revenues to reduce air pollution from mobile sources. sfffflm CITY OF LAKE ELSINORE, CALIFORNIA OTHER SPECIAL REVENUE FUNDS (CONTINUED) June 30, 2012 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 fiends. Cost Recovery System - to account for receipts of deposits. Deposits may be paid by developers used for plans and permits or by citizens for facility rentals. Developer A reement Revenue /Trust - to account for development fees based on developer agreements. Affordable housing in Lieu - to account for collection of fees assessed to developers and for expenditures made on affordable housing projects. City Ilall /Public Woks - to account for collection of fees assessed to developers and for expenditures made on City Hall and Public Woks facilities projects. Community Center - to account for collection offees 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 lot' collection of fees assessed to developers and for expenditures made on animal shelter facilities projects. Camino del Note - to account for fees assessed to developers and for expenditures made on the Camino del Note projects. Miscellaneous Grants - to account for miscellaneous Federal. State and County grants requiring segregated fund accounting. National Pollutant Discharge System (N.P.D.E.S.) - to account for fees assessed to property owners for the N.P.D.E.S., which is mandated by the federal government. This requires cities to clean up storm water runoff. PEG Grant - to account for public access cable channel grant revenue provided by cable franchisees based on subscribers. Funds are used for PEG access equipment, production equipment, as well as renovation or construction of PEG access facilities. Successor Agency of the Redevelopment A =enc - 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 Agency was dissolved effective February I, 2012. _ 109 _ CITY OF LAKE ELSINORF„ CALIFORNIA COMBINING BALANCL SI-IBL'F OTHER SPBCIAL RBVBNUG FUNDS June 30,2012 Supplemental Justice. 011loa °of Law Ass,slancc Ilalnl I_n ()mC�nent 6,am and 'I "laf o Gas SCNIce P, og, n, .Saoly Offender la\ A SSF IS Ca,It and invcsnn cues S 96,582 S 1,273 S 2,722 S 154,606 S 1,879,643 Accrued rcce,vabl, 38 - - 32 467 Duefmm other gavcnuunnts 25,000 29,804 - 101 AL ASSFIS S 121,620 S 1.273 S 32.526 S 154,638 ,S 1,880,110 LIA131LI'I IES AND FUND RAI_AN( 'E.S I.IART1,11-TES: Accounts payable S 27,733 S - S - S 7,579 S 560,415 Awned liabilities - - 208 - 13,759 Deposits and ocher li abilities - - _ _ - Docloolhcrlimds - 14,399 37,729 - - Deterred revenue - 13,787 - 'I "(II "AL LIARILIIIFS 27,733 )4,399 51,724 7,579 574,174 FUND RALANCES (DEFICITS) Resinctcd for General eovemmem - - - _ _ Public safely 93,887 - - 147,059 Public scrvica - - - - 1,305,936 Conunon.TV services - - - _ _ Unassigned (13,126) (14198) 10 1 At FUND BALANCES (DE19CI'I S) 93,887 (13,126) (19,198) 147,059 1,305,936 - TOTAL LIABILI'1II IS AND FUND BALANCES (DI-FICI I IS) S 121,620 S 1,273 S 32,526 S 154,638 $ 1,880,110 See independent auditors report. 110- S 101,215 .S - S 21,020 .S 152,788 S 3,481 S - S 4,136 S - - - 1,959 - - - - 7,812 - - - 1,700 - - - - - 60.761 89,417 101,215 97,229 22,979 112,799 3,481 1,700 4,136 60.761 19,808 111.080 784,452 22591 - 1,890 179,986 - 213,912 78,208 784,452 22,591 111,080 1,890 179,986 19,808 213,912 78,208 $ 885,667 $ 119,820 $ 134,059 S - 154,678 S 183,467 S 21,508 $ 218,048 S 138,969 (Continued) 'I -DA Anidc 3, Cily,,& 5138211 Lighting AR 2766 1 nnsportmion - Pedestrian P a lie and 1 1_M D. Air Measm,A Sidewalk Safely Landsenping No l (kwhennal Pollmion C.D,13,G. 732,714 S 119,820 S 105,447 S 134,133 S 181,441 S 21,508 S 201,754 S 20,054 181 - 27 - 35 - 39 7 152,772 - 28,585 20,545 1,991 - 16,255 118,908 S 885,667 S 119,820 S 134,059 S 154,678 S 183,467 S 21,508 .S 218,048 S 138,969 S 101,215 .S - S 21,020 .S 152,788 S 3,481 S - S 4,136 S - - - 1,959 - - - - 7,812 - - - 1,700 - - - - - 60.761 89,417 101,215 97,229 22,979 112,799 3,481 1,700 4,136 60.761 19,808 111.080 784,452 22591 - 1,890 179,986 - 213,912 78,208 784,452 22,591 111,080 1,890 179,986 19,808 213,912 78,208 $ 885,667 $ 119,820 $ 134,059 S - 154,678 S 183,467 S 21,508 $ 218,048 S 138,969 (Continued) CITY OF LAKE; ELSINORE, CALIFORNIA COMBINING BALANCE SHFT�I- 01 HER SPECIAL. REVENUE, FUNDS (CONTINUED) June 30, 2012 See independent auditors' report. -112- Cost Developer A0,,,dablc Recovery Agreen)ent Housing City Nall/ Commmnity System Revcnuc /'17ust In -Lieu Public works center ASSETS Cash and nvestmcnci S 730,274 S 1,131006 S 1,232,880 S 1, 07,199 % 106,943 Acmtu d rccci)zblc - 71_ 250 238 18 Due It other govcrnmcnts - _ 'I- O'FN_ASSL'1'S S 730,274 $ 1,131078 $ 1233,130 $ 1,157,436 $ 106,961 LIAHILI'I IF'S AND FUND BALANCES LIA1311A I TS. Accotmts payable $ 28,691 % - S - .$ - 5 114 AeQ ned habI m,s Dgx)SIt, :md nth" hal'thuC4 Due to other hinds Delvrrcd revenue 701,583 - 101 AL I. IABILI'IIFS 730,274 - 114 FUND BALANCES (DEFICITS)_ Restricted for. Gcnel'al Public safely Public services - 1,131078 - 1,157,436 - Con m unity scrviccs - - 1,233,130 - 106,847 I)IlatiflgnCd - '1- 01ALFUND BALANCES (DEFICITS) 1,131,078 1,233,130 1,157,436 106,847 '10'1'AL LIABILI "D15.S AND FUND BALANCES(DEFICITIS) S 730,274 $ 1,131,078 S 1,233,130 S 1,157,436 $ 106,961 See independent auditors' report. -112- S 17,670 S 333 $ - S 947,329 S 284 S - S Successor Total - - - 3 293 - - 43,852 A�oncy Other Lake - _ _ 9.512 OI th, spwal Side Aniaml Camino Misccllancous Pcg Redevelopment Rcvcnuc I'acililics Sheller del Norte Giants N P.D_I? S_ Gran) Aucncy Punds 42,303 333 1979,586 24,054 95,957 3992519 S 2 14,1 02 b 245,326 S 31495 5 - S - S 131,243 S - S 8636,164 45 49 7 - - 12,255 - 13,760 - - 1,164,457 - - 1,558_317 - - - 4,910,991 171,844 24S 042 - - - $ 214,147 .S 245,375 S 35502 S 1,164457 .S S 143,498 S - .S 10,208241 S 17,670 S 333 $ - S 947,329 S 284 S - S - S 1,772,787 24,633 - - - 3 293 - - 43,852 - - - - - _ _ 9.512 - - 456313 20,477 - - 589679 - 675,945 - 95.957 1,576,689 42,303 333 1979,586 24,054 95,957 3992519 _ _ - - - 47,541 - 67,349 - - 352,026 - - 35,502 - - - - 4,910,991 171,844 24S 042 - - - - - 1,756,863 - (815,129) (24,054) - (871.507) 171,844 245,042 35,502 (815,129) (24,054) 47,541 S 214,147 S 245,375 S 35,502 S 1,164,457 $ S 143,498 ,8 113 - 6,215,722 S 10,208241 CITY OF LAKE LLSINORF. CALIFORNIA COMBINING S'I- A'iIMEN "I -OP RL:VI >NIJES_ IiXPENDII'IJRIS AND CIIANGBS 1N PIJND I3ALANCIS OTHER SPECIAL REVENUE FUNDS For the year ended June 311, 2012 Supplcmantul Justice 011icc nl - Lae' Assismncc Trxl'lic Enlinccmm�l Glans and EaBlc Gas Service Program Safely 011cndcr Tan RI VENUES_ Licenses, pcnniLS mtd lees 8 - S - $ - S 57,500 S - Intergovernmental revenues 100,000 7,295 59,787 - 1,456,178 Fines, Forfeitures and pennlocs - - - - - Invesmienlincome 2,457 - - 2,686 40,162 Special asse5smen LS - - - - - Miscellanaous - - 2,053 - 10 '1- AI. REVENUES 102,457 7,285 59,787 60,186 1,498393 EXPENDITURES'. Cin ec"t Gcncral govcmmcut - - - Publicsafcty 144,304 20,771 57,604 54,638 - Gnnnnmlly devclopmcnl - - - - - Peblicscrvices - - - - 1055,856 Conmmnav services - Capital ouday 885,095 _ Debt scivice_ Principal lnterest and fiscal charges - 'f0 "1-Al, EXPEND1"1MRI'S 144,394 20,771 57,604 54,638 1,940,951 EXCESS OF REVENUES OVER (UNDER) EXPENDFI URFS (41937) (13 -486) 2,183 5,548 (442,558) 0'111FR FINANCING SOURCES (ESE .S) I7anslcrs in - - - - - 'fransfcrsoul - - (705,874) TOTAL 01-1 IER FINANCING SOURCES (USES) (705,874) NET CI- IAN(JE. IN FUND BALANCES, - BEFORE ExI- RAORDINARY ITEM (41,937) (13986) 2,183 M48 (1,148,432) - GX I RAORDINARY ITEM: Loss from dissolution W Redevelopment Agency - NI-. r CHANGE IN FUND BALANCES (41,937) (13,486) 2,183 5,548 (1,148,432) FUND BALANCES (DI FICI IS)- BEGINNING OF YEAR 135,824 360 (2I 761) 141,511 2954,368 FUND BALANCES (DEFICITS) - END 01 "YEAR S 93.887 S (13,126) S (19,198) S 147,059 S 1,305,936 See independent auditors' report - 114- 278,054 - - 400.215 1 -937 36,740 028,367 57,817 - - 867,796 60,465 409 -160 78,121 - - - 32,710 95,000 127.206 809,375 'I DA Anicic 3, 314794 City -widc 118,282 32,710 222,206 118,082 22,591 (31,829) SB8211 118,082 Lighting 8,171 11 5,066) AB 2766 142,909 "I- ansportation - Ndcstrian lhallk and 1_I -.M.D. 21,154 Air 115,000 Mc-, aww A SWmalk S'Aw, Landscaping No l Gcolhcnnal Yullution C0.N G. 19,808 s 213,912 s 78,208 21,154 (40,000) 95,000 (30000) .'S $ - s - .s - 5 118,082 22- -591 - 913,840 80,058 - - - - 65,847 410,029 - - 320,177 - - - - - 11,553 1;137 2.788 7090 1,799 358 2,972 254 - - - 1,361,007 217,311 - - - 2,064 - - 13,000 5,000 927,457 81495 322,965 1,381,097 224,110 358 (8.819 410,283 278,054 - - 400.215 1 -937 36,740 028,367 57,817 - - 867,796 60,465 409 -160 78,121 - - - 32,710 95,000 127.206 809,375 811,058 314794 1,496,163 118,282 32,710 222,206 118,082 22,591 (31,829) (20,066) 118,082 1,437 8,171 11 5,066) 105,828 358 36,109 188077 142,909 21956 104,158 19,450 177,803 21,154 21,154 - 115,000 - - - - (21,154) - (40,000) (20000) (30,000) - 1,890 s 179,986 s 19,808 s 213,912 s 78,208 21,154 (40,000) 95,000 (30000) 118,082 22- -591 (31,829) (2,066) 75,828 358 36,109 188,077 (Continued) 115- 118,082 22,591 (31,829) (20,066) 75,828 358 36,109 188,077 666,370 142,909 21956 104,158 19,450 177,803 (109,869) $ 784,452 $ 22,591 5 111,080 s 1,890 s 179,986 s 19,808 s 213,912 s 78,208 (Continued) 115- CITY OF LAKE EISINORE. CALIFORNIA COMBINING S'I-A 'ItiMY:N'I' OF R[ VBNUFS, I'_XP6NDl l'URGS AND CIIANGI S IN I'UND IIAI,ANCI ',S OIIIIR SPFCIAI. RBVI�NUI: FUNDS WON 'IINUGD) For the year ended June 30, 2012 REVENUES'. Licenses, pennies and fees Intcrgovenmrental eve...es Fines, forfeitures and pm dfits Invesln ent income Special as...Smcm3 Miscellaneous MI A], REVEN(114S EYPENDI IU2E S C""ent Gen, r,A govcrmnenl Public safety Commumiv dcvdopmnne Public scrvicts Cummm�ity serviees Capital outlay Debt service Principal retirement Interest and fiscal charges -1 Ol AT, E:XPE.NDI "IFIRES EXCESS OI' REVIiINI II IS OVER IUNDHR) EXPENDITURE'S 0'11 -IER FINANCING SOUP CIIS (USES)'. I ansfers in 'I "renslca nut TOTAL 0'1 "1TER FINANCING SOURCES (USES) NI I CHANGES IN FUND BALANCES, BEFORE E:X'IRAORDINARY FFF.M EXIRAORDINARY ITEM. Loss Il'onl dissolution of Redevelopment Agency NET CI IANGE IN FUND BALANCES FUND BALANCES (DEFICITS) - BI GINNING OF YEAR FUND BALANCES (DF_FICFFS)- END 01: YEAR See independent auditors' report Cast Developer Allordable 12wwcv v Agrcemall Huusing CayIlaIV Conmrtinay System Revenue/I Ium h,hctl Public Works Cmter $ - S 87,000 S 110566 S 63,059 S 41,965 - 5,955 19,603 19,203 1,741 100 93,055 130,169 82,262 43,706 460 12,659 26,081 31,426 460 - 12,659 47,507 92.595 130,169 69,603 (3,801) 92,595 130,169 69,603 (3,801) 92,595 130,169 69,603 (3,801) 1,038,483 1,102,961 1,087,833 110,648 S S 1,131,078 S 1,233,130 $ 1,157,436 S 106,847 -I1G- 117 - - - 6,380 - Su,.,ssor Total 103,301 - - - 49,238 Agency Olh" Iake 604 -699 - - - of th, Special Sid, Aninml Camino Miscllmtemis - Peg 12 edevelopment R,V,na, Fac,hiles Shcllcr del Nor(e Gams NJ'DPS. Grim Avcsrncv Funds 78,586 - - - 1,125714 - 85882 S 59,983 S 26,796 S - .S - S 101,906 S 47,789 .S - S 596,564 - - - 2,972,431 - - - 6,065,455 - - - - - - - 320,177 3,597 4972 603 1,986 - - 51,362 182578 - - - - - - - 1,578,318 (1,044,030) (1,756,859) - - - - 240 22.457 63,580 31,768 603 2974,417 101,906 47,789 51,602 8,765549 117 - - - 6,380 - - 97,011 103,301 - - - 49,238 - - - 604 -699 - - - - - - 271027 122.027 - - - 31,017 159.992 248 - 2418,018 92,386 - - 78,586 - - - 1,125714 - 85882 - 3,570,475 - - - 5.177,365 - - - - - - 675,000 675,0011 - - - - 296,594 296,594 92,386 85,882 - 3,735,696 159,992 248 1,095,632 10,522,408 (28,806) (54,114) 603 (761,279) (58,086) 47,541 (1,044,030) (1,756,859) - - - 18,874 45,000 - - 221,182 - - - (817,028) - 18,874 45,000 - (595,846) (28,806) (54,114) 603 (742;105) (13,086) 47,541 (1,044,030) (2,352,705) - - (25,398,018) (25,398,018) (28,806) (54,114) 603 (742,405) (13,086) 47,541 (26,441,04 9) (27,750,723) 200.650 299,156 34,899 (72,724) (10,9(,8) 26,442,048 33.966,445 $ 171,844 $ 245,042 S 35,502 $ (815,129) $ (24,054) $ 47,541 S - S 6,215,722 117 CPfY OP LAKE 1:1 SINOR11, CALIFORNIA SCIiBUIJLE OP RI VISl1L S. EXPENUI'FIJRI:S AND CHANGES IN FUND BALANCE - I3U D(il F AND ACTUAL SUPPLEMEN'fAl, LAW ENFORCE MENT SF,RVICE SPECIAL REVENUE PIJND I'm the veer ended lime 30, 7_011 REVENUES: lnteigovernmental revenues Investment income "1-O 1'AL REVENUES EXIIENDI I'URES: CwrcnC Public safety P.XCI3SS 017 REVENUES S OVER (UNDER) EXPENDITURES FUND BALANCE - 13E0INNING OF YEAR FUND BALANCE- END OF YEAR See independent auditors' report. Variance With Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 100,000 S 100.000 $ - - 2,457 2,457 100,000 102,457 1457 - 160,000 144,394 15,606 (60.000) (4L937) 18,063 135.824 135,824 135.824 - $ 135,824 $ 75.824 S 93,887 $ 18.063 118 - CITY OF LAKE ELSINORE. CA] PORNIA SCIIFDULE OF RI;VI�NtI] S, EXPEND11 -URES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL JUS'I'10.. ASSISIANCE GRANT PROGRAM SPECIAL REVENUE FUND For the year ended June 30, 2012 Valiance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Intergovernmental revenues $ - $ 14,760 S 7,285 $ (7,475) EX PENDI TURFS: CurrenC Public saPcq, 7,700 22 -460 20771 1,689 EACi:SS OF RF.VBNUES OVER (UNDE=R) EXPBNDI HIRES (7,700) (7,700) (13.486) (5,786) FUND BALANCE - BEGINNING 01' YEAR 360 360 360 - FUND BALANCE(DEFICI T- ) - ENDOFYEAR S (7,340) $ (7,340) $ (13,126) S (5,786) See independent auditors' report. 119- CI "IY OF LAKE ELSINORF:. CALIFORNIA SCHEDULE OF REVENUE: S. EXPENDI'PURES AND CHANGES IN FUND BALANCE: BUDGE I' AND ACTUAL OFFICE OF TRAFFIC AND SAFETY SPECIAL, REVENUE FUND For the year ended .June 30, 2012 See independent auditors' report. - 120- Variance with Final Budget Budgeted Am0u11l.S Positive Original Final Actual (Negative) RE V ENt1IS: Intergovemmental revenues $ 65,000 $ 126,300 $ 59.787 $ (66,513) EXPENUTTURES: Current: Public safety 4302 62,702 57.604 5,098 EXCESS OF RFVENUFS OVER (UNDER) EXPENDI LURES 60,698 63,598 1183 (61,415) FUND BALANCE - BEGINNING 01: YEAR (21,381) (21,381) (21.381) - FUND BALANCE (DEFICIT) - END 01: YEAR $ 39317 $ 42,217 s (19.198) $ (61,415) See independent auditors' report. - 120- CI FY OF LAKE: ELSINORE, CALIFORNIA SCI- IEDULE OF RI-A`FNIA IS, EXPENDITI310 ES ANT) CHANGES IN FUND BALANCE- BTIDGE F AND ACTUAL TRAFFIC OFFENDER SPECIAL RI:VLNUF FUND For the year ended .June 30. 2012 RIVINUIS: Licenses, permits and tees Investment income "I-O'FAL REVENUES EXPENDFPUR S: Current Public safety EXCESS OF REVLNUtS OVER (IINDEIO E(XPENDI FURES FUND BALANCE - BEGINNING OF YLAR FUND BALANCE - END OI' Y1 AR See independent auditors' repot. Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 72,000 $ 72,000 $ 57,500 $ (14,500) - - 2.686 2.686 72,000 72,000 60,186 (11,814) 35 -000 58,651 54.638 4,013 37,000 13,349 5,548 (7,801) 141 511 141.511 141.511 - $ 178.511 $ 154.860 147.059 $ (7,801) 121- See independent auditors' report. - 122- CITY OF LAKE ELS1NORI:, CALIFORNIA SCHEDULE OF REVENUES, EXPI.ND1lURL'S AND CHANGES IN FUND BALANCE - BUD6171' AND ACTUAL - GAS'fAX SPECIAL, REVENUI FUND For die Year ended June 30, 2012 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) RIM, ,NIUS: Intergovernmental revenues S 1,366,790 $ 1,366,790 $ 1,456,178 $ 89,388 Investment income - - 4(1,162 40,162 Miscellaneous - - 2,053 2053 'DOTAL REVENUES 1,366,790 1,366,790 1,498,393 131,603 I XPI >NDl'I(JRES: Cut lent Public Set VICCS 828,176 847,060 1.055.856 (208,796) Capital outlay 1,359.560 1,845,371 885,095 960,276 TOTAL, EXPENDI "LURES 2.187.736 2,692431 1,940.951 751,480 EXCESS OF RIVBNIJES OVER (UNDER) EXPENDI HJRFS (820,946) (1,325,641) (442558) 883,083 OTHER FINANCING USFS: Transfers out - - (705.874) (705,874) NG'I CHANGE: IN FUND BALANCES (820,946) (1,325,641) (1,148,432) 177,209 FUND BALANCE - BEGINNING OF YEAR 2.454,368 2,454.368 2.454,368 - FUND BALANCE - END OF YEAR $ 1.633,422 $ 1,128,727 $ 1.305.936 $ 177.209 See independent auditors' report. - 122- CITY OF LAKE ELSINORE. CALIFORNIA SCI 11 DULE OF REVENUES, EXPENDI HIRES AND CI IANGES IN FUND BALANCE:- BUDGIsI' AND ACTUAL TRANSPORTATION - MEASURE A SPECIAL REVENUE FUND For the year ended June 30, 2012 REVl NIJES: hricrgovemmenial revenues Investment income Miscellaneous l'O'I'Al. REVENUES EXPEND1lURES: Current: Public services Capital outlay TOl'Al. EXPENDITURES EXCESS 017 REVENUES OVER (tJNDER) EXPENDIlURFS O'lIiBR FINANCING SOURCES (USFS): Transfers in Transfers out NEF 01I1EIZ FINANCING SOURCES (USFS) 21,154 21,154 (21.154) (21,154) NE'F CI -IANGE 1N FUND BAI,ANCI3S (552,390) (795,180) Variance with 913,262 FUND BALANCE - BEGINNING OF YEAR 666.370 Final Budget Budgeted Amounts FUND BALANCE'-, -END OF YEAR Positive Original Final Actual (Negative) S 786,000 S 786,000 S 913,840 $ 127,840 - - 11,553 11,553 - - 2.064 2.064 786900 786,000 927.457 141,457 76,963 77,853 400.215 (322,362) 1,261.427 JJ03327 409,160 1,094,167 1.338390 1.581.180 809375 771 -805 (552,390) (795,180) 118,082 913,262 21,154 21,154 (21.154) (21,154) NE'F CI -IANGE 1N FUND BAI,ANCI3S (552,390) (795,180) 118,082 913,262 FUND BALANCE - BEGINNING OF YEAR 666.370 666,370 666,370 - FUND BALANCE'-, -END OF YEAR 113,980 (128.810) 784,452 913,262 See independent auditois' report. 123- C'IY OI LAKI? ELSINORE. CALIFORNIA SCI IEDULE 01= RI;VINUI S. EXPENDITl1RBS ANU Cl- IANGI:S IN FUND BALANCE - BUDGE'P AND ACTUAL TRAFFIC SAI-T I'Y SERVICE SPECIAL REVENUE FUND For the year ended June 30, 2012 See independent auditors' report. - 124- Variance with Final Budget RUd,geted Amounts Positive Original Final Actual (Negative) RI',VF.NU6S: Fines, lbrfcitmesandpenalties $ 303,900 $ 303,900 $ 320,177 $ 1(1277 Investment income - - 2.788 2,788 1'0 'I'AI, REVENIII:'S 303.900 303.900 322,965 19,065 EXPENDITURES: Cunene Public salety 290,400 290,400 278.054 12,346 Public services 40.000 40,000 361740 3.260 TOTAL EXPENDI TLJRES 330.400 330A00 314.794 15,606 FXCI'.SS OF REVEN 11ES OVER (UNDER) EXPENDITURES (26,500) (26,500) 8,171 34,671 OTHER FINANCING USES: It ansfers out - - (40,000) (40800) N1A CI -IANGE IN FUND BALANCES (26,500) (26,500) (31,829) (5,329) FUND BALANCE - BEGINNING OF YEAR 142.909 142,909 141909 - FUND BALANCE - END OF YEAR $ 116,409 $ 116,409 $ 111.090 $ (5,329) See independent auditors' report. - 124- CITY OT' LAKE ELSINORE. CALIFORNIA SCHEDULE OF REVFNUI. S. EXPENDITURFS AND CHANGES IN FUND BALANCL, - HUDGI- 1 AND ACTUAL CITY -WIDE LROITING AND LANDSCAPING SPECIAL REVENUE FUND For the year ended .Anne 30, 2012 See independent auditors' report. 125 - Valiance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Special assessments $ 1,350,000 $ 1.350,000 $ 1,361,007 $ 11,(107 Investment income 4.000 4,000 7,090 3,090 Miscellaneous - - 13.000 13.000 TO "IAA. RI'VENUE,S 1354 -000 1,354,000 138L097 27,097 LX PEN DI I t1RES: Cwrcnc Public services 498,500 498,500 628.367 (129,867) Co 1111111111 i 13' services 776.500 776,500 867 -796 (91,296) TOTAL EXPENDI IURES 1,275.000 1275.000 1,496,163 (221.163) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 79,000 79,000 (115,066) (194,066) OT HER FINANCING SOURCES (USES): Ttan.sters in - - 115,000 115,O0() 'Franslcrs out (20.000) (20.000) (2(1.0(10) - TO 1AL OTHER FINANCING SO1112CFS (I ISLS) (20000) (20,000) 95,000 115,000 NI- ;]'('I IANGE IN FUND BALANCES 59,000 59,000 (20,066) (79,066) FUND BALANCE - BEGINNING OF YEAR 21,956 21,956 2L956 - FI IND BALANCE, - END OF WAR $ 80,956 $ 80.956 $ 1,890 $ (79,066) See independent auditors' report. 125 - CITY OF LAKE ELSINORI.. CALIFORNIA SCIiEDULE OF RBVENUFS, EXPP:NOII'URI'S AND Cl- IANGES IN FUND BALANCE- BUDGE I AND ACTUAL L.L.M.D, NQ I SPECIAL REVENU7: FI IND For the year ended .June 30, 2012 See independent auditois' report. 126- Variance with Final Midget Budecled Amounts Positive Original final Actual (Negative) REVENUE'S Special assessments $ 213,000 $ 213,000 $ 217,311 $ 4,311 Investment income - - 1,799 1.799 Miscellaneous 3.000 3.000 5.000 2,000 '1'01 'At. R I'VENUES 216.000 216.000 224,110 8.110 EXPENDITI IRF,S CnrrenC Public selvices 40 -000 40,000 52817 (17,817) Community services 140,000 140,000 60A65 79,535 1'0 ]'AL EXPENDITURES 180.000 184000 118,282 61,718 EXCESS 017 REVENUES OVF,R (UNDER) EXPENDI HIRES 36.000 36,000 105,828 69,828 OTHER FINANCING USES: 'I'i anst cis out (30,000) (30,000) (30,000) - NF f CI IANGE IN FUND BALANCES 6,000 6,000 75,828 69,828 FUND BALANCE - BEGINNING OF YEAR 104.158 104,158 104,158 - FUND BALANCE; - END OF YEAR S 110,158 $ 1 I (1,158 $ 179.986 $ 69,828 See independent auditois' report. 126- CITY OF LAKF LI.SINORF., CALIFORNIA SCHEDULE OF REVENUES, EXPENDI'FURFS AND CI IANGES IN FUND BALANCE - BUDGE l— AND ACFUAL GEOTHERMAL SPECIAL REVENUE FUND For the year ended June 30, 2012 Variance with Final Budget 73udeeted Amounts Positive Original Final Actual (Negative) REVENUES: Investment income $ 245 A 245 $ 358 s 113 FUND BALANCI - BEGINNING 01 YEAR 19.450 19,450 19.450 - FUND BALANCE- END OF YEAR S 19,695 .S 19,695 $ 19.808 $ 113 See independent auditors' report. -127- CLIP 01' LAKE, ELSINORE. CALIFORNIA SCHEDULE OF REVENUE S, EXPENDITURES AND CHANGES IN 171JND BALANCE- BUDGE "L AND ACTUAL ' Ala 2766 AIR POLLUTION SPECIAL REVENUE FUND For the year ended June 30 2012 Variance with Final Budget L3udgeted Amounts Positive Original Final Actual (Negative) RI'VENUES: Intergovernmental revenues $ 50,000 $ 50,000 $ 65,847 $ 15,847 Investment income - - 2.972 2.972 l'O Mt, REVENUES 50-(100 50.000 68-819 18.819 EXPEND] "LURES: Current: Public safety - - 32.710 (32,710) Capital outlay 43,743 43,743 - 43,743 "LOYAL EXPENDI PURLS 43.743 43,743 31710 11.033 EXCESS OP REVENUES OVER (UNDER) EXPENDITURLS 6,257 6,257 36,109 29,852 FUND BALANCE BEGINNING 017 YEAR 177.803 177,803 177,803 - YUND BALANCE- END OF YEAR $ 184.060 $ 184060 $ 213.912 $ 29,852 See independent auditors' report. - 128- CITY OF LAKE tT.SINORL, CALIFORNIA SCI IBDULEI OF REVENUI. S. I XPENDI HIRES AND CI- IANGES IN FUND BALANCE - BUDG1� I' AND ACTUAL C.D.B.G, SPECIAL REVENUE FUND For the year ended June 30, 2012 Budgeted Amounts Original Final ACWaI Variance with Final Budget Positive (Negative) REVI NI IES: lntergovemmental revenucs $ 150,000 $ 150,000 $ 410,029 $ 260,029 Investment income - - 254 254 POTAI. RFVF.NULS 150.000 150.000 410.283 260,283 I'XPLNDI'I'URLS: Current Community development 75,000 95,000 95.000 - Capital outlay 275,798 275,798 127,206 148,592 TOTAL EXPENDI I'URI S 350,798 370,798 222.206 148,592 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (200,798) (220,798) 188,077 408,875 FUND BALANCE (DEFICIT) - BEGINNINGOFYEAR (109,869) (109.869) (109.869) - FUND BALANCE -END OF YEAR $ (310,667) $ (330,667) $ 78,208 $ 408,875 See independent auditors' report. - 129- CITY OF LAKE I?.LSINORE. CALIFORNIA SCI IEDULE OF REVENUES, EXPI NDI'PURIIS AND CIIANGES IN FUND BALANCI. - BUDGEP AND ACl'UAI, DEVELOPER AGREI>MLNT REVENIII /TRUST SPECIAL RI'VI'NIIF FUND For the year ended June 30, 2012 See independent auditors' report. - 130- Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) RIVENI.JIS: Licenses, permits and Pecs $ - $ - $ 87.000 $ 87.000 Investment income 24,000 24,000 5.955 (18,045) Miscellaneous - - 100 100 'DOTAL REVENUES 24,000 24,000 93.055 69.055 EXPENDI'l 11RF.S: Cun ent: Public services - 368 460 (92) EXCESS OF 12F:VIr:Nt1ES OVER (UNDER) EXPENDITURES 24.000 23.632 92.595 68.963 FUND BALANCE - BEGINNING OP YEAR 1,038,483 1,038,483 1.038,483 - FUND BALANCE -END01 :YEAR $ 1,062.483 $ 1,062,115 $ 1.13L078 $ 68.963 See independent auditors' report. - 130- CITY OF LAKE FILSINORti_ CALIFORNIA SCHEDULE OF RI'_VENLILS, EXPENDITURES ANT) CHANGES IN FUND BALANCE - BUDGET AND ACTUAL AFFORDABLE I1OLISING IN LIEU SPECIAL RL:VF,NL1E FUND For the year ended ,Tune A 2012 See independent auditors' report. 131 - Variance with Final Midget Budwed AITlnnntS Positive Original Final Actual (Negative) RF,VENUIS: Licenses, permits and fees $ 10,000 $ Io,000 $ 1 8566 $ 100,566 Investment income 12,000 12,000 19.603 7.603 TOTAL REVENUES 22,000 21000 130,169 108,169 FUND BALANCE - BEGINNING OF YEAR 1,102,961 1,102961 1.102961 - FUND BALANCli- END OF YEAR $ 1,124,961 $ 1,124,961 $ 1,233.130 $ 108,169 See independent auditors' report. 131 - Cl rY OF LAKE? I- LSINORE:, CALIFORNIA S('11EDtJLE OF REVENUES, EXPEND] ITRES AND ('IIANGPS IN FUND BALANCL - BUDGET AND ACTUAL CITY BALL /PUBLIC WORKS SPECIAL REVENUE FUND For the Year ended June 30. 2012 See independent auditors' report. 132- Val iance With Final Budgct Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Licenses, permits and tees $ 56,000 $ 56,000 $ 63,059 $ 7,059 Investment income - - 19203 19.203 'FOI At, REVENUES 56,000 56M00 82,262 26262 EXPENDI TIJRFIS: CurrenC Public services - 101,800 12059 89,141 Capital outlay - 460,422 - 460,422 "I'O "I'AL EXPENT)l TURFS - 562.222 12.659 549 -563 EXCESS OF REVENUES OVER (UNDER) EXPENDi'FURES 56,000 (506,222) 69.603 575,825 FUND BALANCE- BEGINNING OFYFAR 1,087,833 1,087,833 1,087.833 - FUND BALANCE - END OFYEAR $ 1,143.833 $ 581.611 $ 1,157.436 $ 575,825 See independent auditors' report. 132- CITY OE LAKE ELSINORE, CALIFORNIA SCHEDULE OF RENI:NUE S, EXPENDITURES AND Cl IANGES IN FUND BALANCE - BUDGET AND ACTUAL, COMMUNITY CENTER SPECIAL, REVENUE FUND For the year ended Junc 30, 2012 Budgeted Amounts Original Filial Actual Variance with Final Budget Positive (Negative) REVENUES: Licenses, permits and fees $ 32,000 $ 32,000 S 41,965 $ 9,965 Investment income - - 1,741 1,741 'I'OI'AL REVENUES 32,000 32,000 43,706 11-706 FAIT MATURES: CurrenC Community services - - 26,081 (26,081) Capital outlay 32202 32 -202 21,420 10,776 TO TAI, 1APE,NDITURES 31202 32,202 47507 (15305) EXCESS OF REVENUES OVER (UNDER) L XPENDI TURFS (202) (202) (3,801) (3,599) PUND BALANCE - BEGINNING OP YEAR 110,648 110,648 110,648 - FUND BALANCE - END OP YEAR $ 110.446 S 110,446 $ 106,847 $ (3,599) See independent auditors' report. 133 - CI "IY OF LAKE. ELSINORE_ CALIFORNIA SCHEDULE. OF REVENUES, EXPENDI'IVRES AND CI- IANGI;S IN FUND BALANCE- I3UDGI1F AND ACHJAL LAKE, SIDE FACILITIES SPECIAL REVENUE FUND For the year ended .June 30, 2012 See independent auditors' report. 134- Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Licenses, permits and fees .$ 49,900 $ 49,900 $ 59,983 $ 10,083 Investment income - - 3,597 3,597 "POPAL REVENUES 42900 49,900 63.580 13,680 EXPENDITURES: Currcne Community services - 63,035 92,386 (29,351) Capital outlay 42.326 57,326 - 57,326 1'01 AL EXPEND] URES 42.326 120 361 92,386 27,975 EXCESS OE REVENUES OVER (UNDER) EXPENDITURIS 7,574 (70461) (28,806) 41,655 FUND BALANCE - BEGINNING OF YEAR 200,650 200,650 200.650 - FUND BALANCE. - END OF YEAR $ 208.224 $ 130,189 $ 171.844 $ 41,655 See independent auditors' report. 134- CITY OP LAKIF. USINORF.. CALIFORNIA SCHEDULE' OF REV ENUI S, EXPENDITURES AND CI IANGBS IN FUND BALANCE - BUDGET AND AC "I IJAL ANIMAL. SIJEf:IER SPECIAL REVENUE FUND For the year ended June 30, 2012 Original Amounts Final Actual Variance with Final Budget Positive (Negative) REVENUES: Licenses, permits and lets $ 31,000 $ 31,000 $ 26,796 $ (4,204) Investment income - - 4,972 4972 1'0 TAL REVENUES 31,000 31,000 31,768 768 EXPENDITURES: Capital outlay 150,000 150,000 85,882 64,118 EXCESS OF Rl Vl NLJI S OVER (UNDER) I PLNDITURIS (119,()00) (119,000) (54,114) 647886 FUND BALANCE - BEGINNING OF YEAR 299,156 299.156 299 -156 - FUND BALANCE - ENDOFYIAR $ 180,156 S 180,156 $ 245 -042 $ 64,886 See independent auditors' report. -135- CITY OP LAKE ELSINORE. CALIFORNIA SCI -IEDUL F OF RI VENUES. EXPENDITURES AND CI- IAN(iFS IN FUND BALANCE- BUDGII I' AND ACTUAL CAMINO DFd. NORTE. SPECIAL REVENUE: FUND For the year ended June 30, 2012 See independent auditors' repots. 136- Variance with Final Budget Budgeted Amounts Positive Original f=inal Actual (Negative) REVENUES: Licenses, permits and lees $ 370 $ 370 $ - $ (370) hrvestmcnt income - - 603 603 TOTAL REVENUES 370 370 603 233 FUND BALANCE - BEGINNING OF YEAR 34,899 34.899 34,899 - FUND BALANCE - END Ol' YEAR $ 35269 $ 35.269 $ 35.502 $ 233 See independent auditors' repots. 136- CIIY OF LAKE ELSINORI ( AL,IFORNIA SCI IE.DI OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL, MISCELLANEOUS GRANTS SPECIAL REVENUE, FUND RFVFN1 it's Intergovernmental revenucs Investment income 1'OJ'AL REVENUES EXPENDI "LURES: Current: General government Puhlic safct3 Public selvices Community Scrviccs Capital outlay V0 ]'AT. EXPF.N D ITL1 RI -S EXCESS OF REVENUES OVER (UNDER) P;XPENDIT11RES For the year ended June 30, 2012 Variance with Final Budget 13udceted Amounts Positive Original Final Actual (Negative) S 129,595 $ 129,595 $ 2,972.431 S 2,842,836 - - 1.986 1.986 129,595 129,595 2,974,417 1844.822 - 6.380 - 49,238 - 31,017 - - 78,586 4252338 4,351.934 3,570,475 4,252,338 4.351,934 3.735,696 (6,380) (49,238) (31,(117) (78,586) 781,459 616,238 (4,122,743) (4,222,339) (761.279) 3461,060 OUTER FINANCING SOURCES: 'Lransl8rs in - - 18.874 18,874 NE'F CHANGE IN FUND BALANCES (4,121743) (4,222,339) (742,405) 3,479,934 FUND BALANCE (DEFICEL) - BEGINNING OF YEAR (72,724) (72,724) (72,724) - FUND BALANCE (DEFICI F) - END OF YEAR $ (4,195467) $ (4295.063) $ (815,129) $ 3.479,934 See independent auditors' report. 137- CI'I Y OP LAKE ELSINORF:. CALIFORNIA SCIIEDULE OF REVENUES. EXPE:NDI IURES ANT) CHANGES IN FUND BALANCE,- 13UDGF;F AND ACTUAL N.P.D.E.S. SPECIAL. REVENUE 171 JND For the year ended June 30, 2012 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES Licenses, permits and fees $ 175,309 $ 175,309 $ 101,906 $ (73,403) EXPENDI1URIS: CLU rent: Public services 214(161 225,587 159,992 65.595 EXCESS OF REVENUES OVER (TINDER) EXPENDITURES (38,752) (50,278) (58,086) (7,808) OTHER FINANCING SOURCES: Transfers in - - 45.000 45,000 NISI IT IANGE IN FUND BALANCES (38,752) (50,278) (13,086) 37,192 FUND BALANCE (DEFICIT) - BEXANNINGOFYEAR (10,968) (10968) (10,968) - FUND BALANCE (DEFICIT) - END OF YEAR $ (49,720) $ (61,246) $ (24,054) $ 37,192 See independent audaors' report - 138- C) 'FY OP LAID: ELSINORE- CALIFORNIA SCHEDULE OP REVI NUL S, I-APENDI'IURES AND CHANGES IN FUND BALANCF - lit IDGI I' AND ACTUAL PEG GRANT SPECIAL REVENUE, FUND For the yetu ended June 30, 2012 See independent auditors' report. 139- Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) RI VENUES: licenses, permits and fees $ - $ - $ 47,789 $ 47.789 EXPBNDI'HIRES* Current: Public services - - 248 (248) Capital OULIHy 60,000 60.000 - 60,000 TOTAL F.XPF.NDI'PURES 60,000 60,000 248 59,752 EXCESS OF REVENUES OVER (UNDER) FXPENDI'rmu -'s (60,000) (60,000) 47.541 107,541 FUND BALANCE. - BEGINNING OF YEAR - - - - FUND BALANCE - END OI' YEAR $ (60,000) $ (60-000) S 47541 $ 107541 See independent auditors' report. 139- TIIIS PAGE INTENTIONALLY LEFT BLANK - 140- CITY OF LAKE ELSINORE, CALIFORNIA OTHER CAPITAL PROJECTS FUNDS June 30, 2012 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. Stone Drain - to account for the capital improvements of-upgrading the storm drains within the City that are financed by development fees. Library Capital Improvement - to account for general capital improvements necessary for the upgrade and maintenance of the Public Libraries within the City. Financed by development fees, upgrades include the purchase of reading material. Signalization Improvement - to account for general improvements and repairs to signal lights within the City that are financed by development fees. Traffic improvements - to account for projects related to traffic improvements, financed by development fees. City Fire Protection - to account for the construction of fire facilities, financed by development fees. Public Improvement In -Lieu - to account for special designated improvements to City property, financed by development fees. Fire Station - to account for deposits and expenditures related to the Fire Station construction. Transportation Uniform Mitigation Fee (TUMF) - to account for multi - jurisdictional development impact fee paid for by new development to provide the transportation infrastructure necessary to accommodate new development. Boat Launch Construction - to account for proceeds and expenditures related to the construction of a new City boat launch. Assessment Districts - to account for transactions related to proceeds from assessment bonds and other resources used to acquire and construct certain capital facilities. Successor Agency of the 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 1, Rancho Laguna 11 and Rancho Laguna 11 project areas. The Agency was dissolved effective February 1, 2012. - 141 - CITY OF LAKE L SINORI , CALIFORNIA COMBINING BALANCE S11EE 1- 0 [I IER CAPITAL PROJECTS FUNDS June 30, 2012 See independent auditors' report 142- Park Miscellaneous Intprovemaa Sum Library General and Capital Stnmi Capital S,pahzalion Project Development Impmvaments Drain Improvement Improvement A.SSF1S Cash andmvestmcntc ,S 1,111,729 S 370,100 S 13,848 S 5,331,282 5 1429,108 .S 151,487 Cash and invasUnents "nth fiscal agent - _ _ _ _ - Acaued internst mccivable 235 72 3 1,094 294 31 Duc from other governments - _ _ TONAL ASSL'IS ,S 1115,964 S 370,172 $ 13,851 .S 5,332,376 $ 1,429402 S 151,518 HABRA PIGS AND FUND BALANCES JABILI'IIES. Accounts payable $ 99,718 $ - .S S - $ 5,577 S - Aeemed liabilities - _ _ 101AL LIABILITIES 99,718 5,577 FUND BALANCES. Renrietcd for. Capital projects - 370,172 13,851 - - - Assigncd To Capital projects 1,016,246 5,332376 1,423,825 151,518 '1- O'1 -AL FUND BALANCES 1016,246 370,172 13,851 5,332,376 7423 -825 151,518 101 A], LIABILITIES AND FUND BALANCES S 1,115,964 S 370,172 S 13,851 S 5,332,376 S 1,429,402 s 151,518 See independent auditors' report 142- S 423,826 S - S - S 529,121 1,623 - - 1.623 - - 425,449 530,744 _ - - - 579,667 643,063 829,977 - 2,435,730 3,419,615 333,836 860,020 19 - Suacsmr 3,419,615 333,836 860020 19 579,667 643,063 825,977 14,973,185 Agency S 3,419,615 S 331836 5 860,020 S 19 S 579,667 5 1,068,512 S 828,977 S - S 15,503,929 of the 'Iblal City Public Boat Redevelop- Other '1,ailk FGe Impmvemenl F"e Launch Assessment menl Capital Improvements Rolec6on IndL a Station TI7MF ConslmOon DL9rlets Agency Prgjoea Funds .5 3,418,913 S 333,770 S 859,841 5 19 L 579,293 S 1069,512 S 128,224 5 - S 14,800,126 - - - - - 700,727 _ 700,727 702 66 179 - - - 26 - 2,702 - 374 374 $ 3,419,615 S 333,836 S 860,020 S 19 S 579,667 S 1,068,512 .S 828977 S - S 15,503,929 S 423,826 S - S - S 529,121 1,623 - - 1.623 - - 425,449 530,744 _ - - - 579,667 643,063 829,977 - 2,435,730 3,419,615 333,836 860,020 19 - 12,537,455 3,419,615 333,836 860020 19 579,667 643,063 825,977 14,973,185 S 3,419,615 S 331836 5 860,020 S 19 S 579,667 5 1,068,512 S 828,977 S - S 15,503,929 -143- CITY OF LAKE: I':ISINORE- CALIFORNIA COMBINING S'I'A'I- I;MGNI- OF RI Vl,NL)I.S, Y,XITNDI- I -URES AND Cl- IANGGS IN FUND BALANCES OTI I R CAPITAL PROJECTS FUNDS For the year ended .June 30, 2012 Pad+ Miscellaneous Improvement Street Library Gcncml and Cnptial Sloan Ca pi la Si gnalizm i on Projecl Development hnprovemmnrs Drain Improvemenl Improvement RI -V[ NIJFS: 72,475 '_36 Currem hcenscs, pcnmu and Ices S _ S 69,306 S - .S 102,508 S 24,750 5 - Investmmn income 10,927 5,494 236 89,806 24,393 2,580 Contribution from property owners - - - - _ - Mtsedlaneous 130,184 - 370,172 S '1'0'1 AT, EXPEND] I ORES 420,814 2.325 '101 'A]. RBVFNUES 141.111 7400 236 192.314 49,143 2,580 I XPGNOT I URl S. 72,475 '_36 Currem 21,992 2,580 General government 111.980 - - Nublicscnviccs 5,003 - - Comm. imay sovia,.s 42,069 2,325 - Cap ml omlay 253,762 - FUND BALANCES 370,172 S '1'0'1 AT, EXPEND] I ORES 420,814 2.325 151,518 BEGINNING 01' YEAR I XCLSS OF RI VENUES OVER FUND BALANCES - (UNDER) FXPENDI I U PIES (279,703) 72,475 236 O'I HER FINANCES SOURCES (USES)_ I ran,sfers in 923,157 - - Transfers cut - - NI I- CI4ANGEIN TRANSFERS 923,152 - NFf CHANGIAN FUND 72,475 '_36 BALANCIS,BEFORe 21,992 2,580 EXIRAORDINAI2YITEM 643,449 13.615 FX I RAORDINARY ITEM: 1,401833 148,938 Dissolution of Redevelopment Agency Ne; F CI4ANGF IN FUND BALANCES 370,172 S 13,851 FUND BALANCES - 1 423,825 S 151,518 BEGINNING 01' YEAR FUND BALANCES - END OF YFAR 27,151 - 27,151 192,314 21992 2,580 72,475 236 192,314 21,992 2,580 643,449 72,475 '_36 192,314 21,992 2,580 372.797 297,697 13.615 5,140,062 1,401833 148,938 5 1016,24fi S 370,172 S 13,851 S 5,332,376 S 1 423,825 S 151,518 See independent auditors' report. - 144 - - - - - - - - - 119,990 Successor - - - 3,973,61 4 - 3,988.930 - - - - - Agency - - 580,671 25,768 3,817,179 - of tile 'I -oral - - 10,213 City Public 3973,614 Bout 9.773.390 Red cvclolr 00'e, 'IYaffie fire Improvanent File Launch Assessment ',Mt Capital Im 1) mvemnenl5 Protection In -Lieu Station 'IUMP Conslmctinn Districts Agency Projects Funds (21,154) 630,874 - - 684,405 2,217 -277 S 87,617 S 48,572 $ 239,620 S S 78,181 $ - 5 - S - $ 650,554 57,305 5,109 14,411 1 - - 3,576 30 213,968 - - - - - - 1 221,1 94 - 1,221,184 - - 419,644 548,828 144,922 53,681 254,031 1 78,181 - 1,224,760 419,674 2,634434 - - - - - - - - 119,990 - - 10,213 - - - 3,973,61 4 - 3,988.930 - - - - - 509,126 - - 580,671 25,768 3,817,179 - 987,20() 5,083,909 - - 10,213 25,768 4326305 3973,614 987200 9.773.390 144,92 53,681 243,819 1 52,413 (4.326.305) (2,749,854) (568.526) (7,139,956) - - - - 630,874 - - 694,405 2,238,431 (21,154) (21,154) (21,154) 630,874 - - 684,405 2,217 -277 144,922 53,681 222,664 1 693,287 (4,326305) (2,749,854) 115,879 (4,921,679) - - - (I 902,593) (1,902,593) 144,922 53,681 222,664 1 683,287 (4,326,305) (2,748,854) (1,786,714) (6,824,272) 3,274,693 280,155 637,356 IS (103,620) 4,969,368 3577,831 1786,714 21,797457 $ 3,419,615 S 333,836 S 860,020 $ 19 $ 579,667 S 643,063 S 828,977 S - $ 14-973,185 145- CITY OP LAKE ELSINORE. CALIFORNIA SCHEDULF OF REVENUES, EXPENDI'IURIIS AND CIIANGES IN FUND 13Al,ANCC 13UDGt' f AND AC HJAI, MISCITLANFOUS GENERAL PROJECT CAPITAL PROJECTS FUND For the vear ended June 30. 2012 See independent auditors' report. - 146- Val'ianee With Final Budget Budeeted Amounts Positive Original Final Actual (Negative) REVENUES: Investment income $ - $ - $ M927 $ 10,927 MISCCI1anCOnS - - 130.184 130,184 "1'0TAL REVENUES - - 141,111 141,111 EXPFNDITURFS: Current: General government 61,233 61,233 119,980 (58,747) Public services - - 5.003 (5,003) Community sorvices - 315,120 42069 273,051 Capital outlay 700,201 1.217,922 253.762 964,160 1'01"AL EXPFNDI HIRES 761,434 1,594,275 420.814 1.173,461 EXCESS OP REVENUE'S OVER (UNDER) EXPENDI RJRES (761,434) (1 .594,275) (279.703) 1,314,572 OTHER FINANCING SOURCES: Ti ansfers in - 69L005 923,152 232.147 NET CHANGE IN FUND BALANCE (761,434) (903,270) 643,449 1,546,719 FUND BALANCE. - BEGINNING OF YEAR 372,797 372.797 372,797 - FUND BALANCE - END OF YEAR $ (388,637) $ (534473) $ I,o 16.246 $ 1,546,719 See independent auditors' report. - 146- CITY OP LAKE ELSINORE. CALIFORNIA SCI IEDULE OF REVENUES, EXPENDITURIS AND CIJANCiES IN FUND BALANCE - BUDGE']' AND ACTUAL PARK IMPROVEMEN "L AND DEVELOPMEN'E CAPITAL, PROJECTS FUND For the year ended June 30, 2012 See independent auditors' report. -147- Variance with Penal Budget Budected Amounts Positive Original Final Actual (Negative) REVENUES: 1_icenscs, permits and Ices $ 125,000 $ 125,000 $ 69,306 $ (55,694) Investment income IQ000 I0.000 5,494 (4,506) TOTAL REVENUES 135,000 135,000 74,800 (60,200) EXPI NDITURES: Current Community services - - 2,325 (2,325) EXCESS OF REVENUES OVER (UNDER) FIXIIFNDI TURES 135,(100 135,000 71475 (62,525) FUND BALANCE - BEGINNING OF Yl.AR 297,697 297,697 297,697 - FUND BALANCE - ENDOFYEAR $ 432.697 $ 431697 $ 370.172 $ (62,525) See independent auditors' report. -147- CI I OI' LAKE BI: SINORF. CALIFORNIA SCI 1I'DULE OF REVENUE S. EXPENDITURES AND CI- IANGF,S IN FUND BALANCE - BUD61 I AND ACTUAL STREET CAPITAL IMPROVEMENTS CAPITAL PROJECTS FUND For the year ended June 30, 2012 See independent auditors' report. 148- Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Investment income $ 250 $ 250 $ 236 $ (14) FUND BALANCE - BEGINNING OI' YEAR 13.615 13.615 13.615 - FUND BALANCE -END OF YEAR $ 13,865 $ 13,865 $ 13.851 $ (14) See independent auditors' report. 148- CITY OF LAKI-: ELSINORF, CALIFORNIA SCI IFI)IJLE 017 RBVI NUFS, I.XPI-:NDITURFS AND CHANGES IN FUND BALANCE- BUDGEF AND AC7IJAI, STORM DRAIN CAPITAL PROJECTS FUND RLVENUE:S: Licenses_ permits and tees Investment income IUTAl, REVENUES EXPFNDh1URFS: Capital outlay EXCESS OF RINIMI S OVER (UNDFJO FXPENDI TURFS FUND BALANCF. - BI:7.GINNING OF YEAR FUND BALANCE- END OF YEAR See independent auditors' report. For the year ended June 30, 2012 65,000 65,000 65,000 50,000 50,000 192314 Variance with 5.140062 5.1407062 5,140.062 E mal Budget Budgeted Amounts S 5332.376 Positive Original Final Actual (Negative) $ 20,000 .R 20.000 $ 102,508 A 92,568 95,000 95,000 89,806 (5,194) 115,000 115,000 192,314 77,314 65,000 65,000 65,000 50,000 50,000 192314 142,314 5.140062 5.1407062 5,140.062 - $ 5,190,062 $ 5,190,062 S 5332.376 $ 142,314 -149- CITY OF LAKE ELSINORE. CALIFORNIA SCI IEDULE OF REVENUFS, EXPEND] I ORES AND CI- IANGES IN FUND BALANCE - BUDGET AND ACTUAL LIBRARY CAPITAL IMPROVEMENT CAPITAL PROJECTS FUND For the year ended June 30, 2012 See independent auditors' report. 150 - Variance with Final Budget Budgeted AmountS Positive Original Final Actual (Negative) REVENUES: Licenses, permits and tees $ 30,000 $ 30,000 A 24,750 $ (5,250) Investment income 15 000 15.000 24393 9,393 1'0 I'AL REVENUES 45,000 45,000 49,143 4,143 EXPENDIORES: C urenC Community sevice.s 32000 38.778 27,151 11,627 EX(TSS 01: REVENIIFS OVER (UNDER) EXPENDITURES 15,000 6,222 21,992 15,770 FUND BALANCE - BEGINNING 017 YEAR 1.401 833 1.401.833 1,401.833 - FUND BALANCE - END OF YEAR $ 1.416.833 $ 1.408.055 $ 1,421825 $ 1 5.770 See independent auditors' report. 150 - CITY OF LAKE ELSINORE. CALIFORNIA SCHEDULE OF REVENUES, EXPENDITURES AND Cl- IANGES IN FUND BALANCE - BUDGET AND ACTUAL. SIGNALI %ATION IMPROVEMEN "I' CAPITAL PRO.BCTS FUND For the yew- ended June 30. 2012 REVENUES Investment income EXPENDITURES: Capital outlay EXCESS OF REVENUES OVER (UNDER) EXPLNDI'FURFS PIJND BALANCE- BEGINNING OF YEAR FUND BALANCE - END OF YEAR See independent auditors' report. Budeeted Amounts Original Final Variance with Final Budget Positive Actual (Negative) $ 2,000 $ 2,000 $ 2,580 $ 580 148,234 148,234 148,234 (146,234) (146.234) 2,580 148,814 148,938 148,938 148,938 - $ 2,704 $ 2,704 $ 151,518 $ 148,814 - 151 - CITY OF LAKE, I LSINORE. CALIFORNIA SCI IEDUL OF REVENUES, EXPENDITURES AND CEIANGES IN FUND BALANCE- BUDGET AND ACTUAL 'I'12APFIC IMPROVF.MI:N'B CAPITAL, PROIEC "IS FUND For the year ended lune 30, 2012 See independent auditor s'report. 152- Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Licenses, permits and tees $ 25,000 $ 25,000 $ 87,617 $ 627617 Investment income 35,000 35.000 57.305 22,305 I'O'fAI, REVENUES 60,000 60,000 144;922 84,922 FUND BALANCE- BEGINNING OP YEAR 3174.693 3,274.693 3274,693 - FUND BALANCE - FND OP YEAR $ 3334,693 $ 3.334.693 $ 3,419.615 $ 84,922 See independent auditor s'report. 152- CITY 01= LAKE ELSINORI:- CALIFORNIA SCI- IFDULE OF REVENLIL S. EXPFNDI'IURES AND CIIAN(iFS IN FUND BALANCE - BODGFF AND ACTUAL CITY FIRI, PROTECFION CAPITAL PROIFCI -S FUND For the year ended June 30, 2012 RI VENT WS: Licenses, permits and fees Investment income '1'0 'I'AL REVFNLIES EXPEND] TURFS: Capital outlay FXCFSS OF R VF:NUF.S OVER (UNDER) EXPEND] 11RES FUND BALANCE - BEGINNING OF YEAR FUND BALANCE - FND OF YEAR See independent auditors' report. 30,000 30.000 53,000 23,000 53,681 Valiance With 28(L155 280,155 280.155 Final Budget Budgeted Amounts $ 333 -836 S Positive Original Final Actual (Negative) $ 40,000 .9; 40,000 $ 48,572 A 8,572 13 -000 13.000 5 -109 (7.891) 53,000 53,000 53,681 681 30,000 30.000 53,000 23,000 53,681 30,681 28(L155 280,155 280.155 - $ 333,155 $ 303,155 $ 333 -836 S 30,681 153 - CITY OF LAKE ELSINORF. CALIFORNIA SCHEDULE OF REVENUES, EXPEND] TURI: "S AND CHANGES IN FUND BALANCE - BUD(il' I' AND ACTUAI, PUBLIC IMPROVl:MI'N I' IN -LIEU CAT'] I AT, PROJECTS FUND For the vew ended June 30, 2012 RFVFNUES: Licenses, permits and tees Investment income TOTAL REVENUES EXPENDII'URI S: CurrenC Public services t:XC1 SS OF REVENUFS OVER (UNDFR) EXPENDITURES 0 I IER FINANCING USES: Transfers out NE F CHANGE IN FUND BAI,ANCE 171 IND BALANCE- BEGINNING OF YFAR FUND BALANCE, - END OF YEAR See independent auditors' report. 154- Variance with Final Bodges Budgeted Amounts Positive Onginal Final Actual (Negative) S 20,000 $ 20,000 .S 239.620 S 219,620 6.000 6,000 14.411 8.411 26,000 26,000 254,031 228.031 - - 10,213 (10,213) 26,(1(10 26,000 243,818 217,818 - - (21,154) (21.154) 26,000 26,000 222,664 196,664 637,356 637,356 637,356 - S 663,356 $ 663,356 $ 860,020 $ 196,664 154- CIRY OP LAKE ELSINORE. CALIFORNIA SC'HEDULF, OF REVENUES, EXPGNDIRUI2ES AND CHANGES IN FUND BALANCE; - BUD6I'1 AND AC I UAL RUMP CAPIRAI, PROJECTS FUND For the year ended June 30, 2012 REVENUES Licenses, permits and lees EXPE;NDIRURFS: Capital outlay EXCESS OR REVENUES OVER (UNDER) 1;XPI NDI "ftJRI;S O'FI IER FINANCING SOIJRCISS 'I'ransici's in NE F Cl IANGE. IN FUND BALANCE: FUND BALANCE (DEPICI -1') - BEGINNING OP YEAR PUND BALANCE - END OF YEAR See independent auditors' report. Budgeted Amounts Original Final Actual Variance with Final Budget Positive (Negative) $ 390,654 $ 390,654 $ 78,181 $ (312,473) 390.654 390,654 25,768 364.886 52,413 52,413 630,874 630,874 683,287 683,287 (103,620) (101620) (103,620) - $ (103.620) $ (103,620) $ 579,607 $ 683,287 155 - CITY OF LAKE I LSINORE. CALIFORNIA S(AIEDULF OF RLVENUIS, EXPENDI'TURE'S AND CHANGES IN FUND BALANCE - BUDOET AND ACTUAL BOAT LAUNCH CONSTRUCT ION CAPITAL PROJL(7IS FUND For the year ended June 30, 2012 See independent auditors' report. 156- Vat 'I Once With Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES EXPEND)TURES: Culrent Convnunity services - - 509,126 (509,126) Capital outlay 4,528,453 4,528,453 3,817,179 711.274 TOTAL EXPENDI'FIJRI S 4528,453 4,528,453 4,326,305 202,148 EXCESS OF REVENITS OVER (UNDGIO I XPIZNDITURFS (4,528,453) (4,528,453) (4,326,305) 202,148 FUND BALANCE - BEGINNING OF YEAR 4,969.368 4.969368 4,969.368 - FUND BALANCE - LND OP YLAR $ 440,915 $ 440,915 $ 643,063 $ 202.148 See independent auditors' report. 156- CITY Ol' I,AKF ELSINORE, CALIFORNIA SCI - IEDULL OP REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE-- BLIDGI >I AND ACTUAL ASSESSMENT' DISTRICTS CAPITAL PROJGCIS FUND For the year ended June 30. 2012 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Contribution Irom property owners A - $ - $ 1,221,184 $ 1,221,184 Investment income 2,000 2.000 3576 1,576 TO "I'AL REVENUES 1000 2,000 1.224,760 1,222,760 EXPENDITURLS: Cul Lents Public ScnviceS - - 3.973,6 14 (3.973,614) Capital outlay 130.000 130,000 - 130,000 TOTAL EXPI-,NDI I URES 130.000 130,000 3,973.614 (3.843,614) FXCESSOFRI VENUES OVER (t1NDla2) IJXPENDI'TURIS (128,0(10) (128,000) (2748,854) (2,620,854) FUND BALANCE - BEGINNING OF YEAR 3,577,831 3,577,831 3.577.831 - FUND BALANCE - I: ;ND OF YEAR $ 3,449,831 $ 3,449,831 $ 828.977 $ (2,620,854) See independent auditors' report. 157- THIS PAGE INTENTIONALLY LEFT BLANK - 158 - CITY OF LAKE ELSINORE, CALIFORNIA PERMANENT FUND June 30,201 -1 Endowment Trust - to account for assets held by the City as a trustee capacity for the Adolph Korn Estate. Money is held for the purpose of building a nurses home for a proposed hospital within the City. Until that time, interest earnings from the estate are used as a scholarship fund for college tuition for students seeking a degree in the nursing field. -159- CITY OF LAKI. IiLSINORE. CALIFORNIA SCIII DULY OF RI-;VI-,NUGS. EXPENDITURE'S AND CI- IANGI:S IN FUND BALANCE- 13UD(il; "f AND ACTUAL ENDOWMI N'i TRt1S "I - PFIZMAN1 'N'I17UND For the year ended .lune 30, 2012 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Investment income $ 400 $ 400 $ 223 $ (177) FUND 13ALANCI:? - BEGINNING OF YEAR X728 30,728 30,728 - FUND BALANCE - END OF YEAR 6 31,128 $ 31.128 $ 30,951 .$ (177) See independent auditors' report. 160- CITY OF LAKE ELSINORE, CALIFORNIA AGENCY FUNDS June 30, 2012 Kangaroo Rat - to account for receipts of Kangaroo Rat fees collected from developers for the habitat Conservation Plan administered by the Riverside County Habitat Conservation Agency ( RCHCA). Pees forwarded by RCHCA are intended to be used to address severe economic impacts on the Stephens' kangaroo rat that is listed as an endangered species. 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 tojointly fiord 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 in the lake. - 161 - CI I-Y OF LAKF ELSINORE. CALIFORNIA COMBINING S']-ATEMEN I OF ASSFI'S AND L.IABIL (TIES AGENCY FUNDS .tune 30, 2012 LIABILITIES Accounts payable $ 2,496 $ 9,708 $ 426.736 $ - $ - $ 438.940 Deposits and other liabilities - 1,022,925 65.000 647,647 74,212 1,809,784 Due to other governments - - 3,201,420 - - 3,201,420 Due to bondholders - - 39,410.325 - - 39,410.325 TOTAL. LIABILITIE'S $ 2,496 $L032,633 $43,103.481 $ 647.647 $ 74,212 $44,860,469 See independent auditors''report. -162- Develope'I Destl'atificat0n Votal Kangaroo Deposit Assessment Lal<e Equipment Agency Rat 97ust Districts Maintenance Replacement Funds ASSETS Cash and investments $ 2,496 $ 1.032,633 $ 2,062031 $ - $ 40,879 $ 3,143,039 Cash and investments with fiscal agents - - 40,660,236 647,647 - 41,307,883 Accrued interest receivable - - 364 - - 364 Due from other governments - - 375.850 - 33,313 409.183 TOTAL. ASSETS $ 2496 $ 1.032,633 $43.103.481 $ 647.647 $ 74,212 $44,860.469 LIABILITIES Accounts payable $ 2,496 $ 9,708 $ 426.736 $ - $ - $ 438.940 Deposits and other liabilities - 1,022,925 65.000 647,647 74,212 1,809,784 Due to other governments - - 3,201,420 - - 3,201,420 Due to bondholders - - 39,410.325 - - 39,410.325 TOTAL. LIABILITIE'S $ 2,496 $L032,633 $43,103.481 $ 647.647 $ 74,212 $44,860,469 See independent auditors''report. -162- CITY OF LAKE E SINORE. CALIFORNIA COMBINING S ATBMBN1' OI' CI IANGES IN ASS] FS AND LIABILI'IILS AGENCY FUNDS KANGAROO RAT ASSETS: Cash and investments LIABILFFIFS: Accounts payable DEVELOPER DEPOSIT TRUST ASSL I IS Cash and investments LIABIL191ES: Accounts payable Deposits and other liabilities TOTAL LIABILITIES ASSESSMENT DISTRICTS For the year ended .June 30. 2012 Balance Balance ,July I- 2011 Additions Deletions June 30, 2012 $ - $ 2.496 S - $ 2,496 $ - $ 2.496 $ - .$ 2,496 $ 1,622,068 $ - $ 582435 S 1,032.633 $ 1,000 $ 8,708 $ - S 9,708 1,621,068 - 598,143 1,022,925 $ 1,622,068 $ 8,708 $ 598,143 $ 1,032,633 ASSETS: Cash and investments $ 1202,959 $ - $ 135,928 $ 2,067,031 Cash and investments with fiscal agents 39.590,510 1,069,726 - 40,660,236 Accrued interest receivable 723 - 359 364 Due from other governments 563.056 - 187.206 375,850 TOTAL ASSETS $ 42,357,248 S 1. 069,726 $ 323,493 $ 43,103,481 LIABILITIES: Accounts payable $ 535,948 $ - $ 109,212 $ 426,736 Deposits and other liabilities 65,000 - - 65,000 Due to other governments 3,199,003 1417 - 3,201,420 Due to bondholders 38,557,297 853.028 - 39.410,325 TOTAL LIABILITIES $ 42,357,248 $ 855.445 $ 109,212 S 43,103,481 (Continued) See independent auditors' report. 163- CITY OF LAKE IL.SINORI.. CALIFORNIA COMBINING STA'LEMEN "I OF CHANGES IN ASSETS AND EIABILITIES AGENCY FUNDS (CONTINUED) For the year ended .June 30. 2012 Balance Balance July I. 2011 Additions Deletions June 30. 2012 LAKL. MAIN'T'ENANCE ASSETS Cash and investments with fiscal agent $ 431.122 $ 216.525 $ - $ 647,647 ILABIIl'f1ES: Deposits and other liabilities $ 431,122 $ 216.525 $ - $ 647,647 DG STRATIFICATION EQUIPMENT ASSE "I'S Cash and invcsunentS $ 147,011 $ - $ 106,132 $ 40,879 Duc 0-om other govenuncnts 41,307,883 - 723 33,333 - 364 33,333 10 1 AL ASS]" I'S $ 147,011 $ 33333 $ 106,132 $ 74,212 LIABIILFIES: Accounts payable $ 2,481 $ - $ 2,481 $ - Deposits and other liabilities 144,530 - 70,318 74,212 '10LAL LIABIIffIF:S $ 14Z011 S - $ 71799 $ 74,212 TOTAL - ALL AGENCY FUNDS ASSEI'S Cash and investments $ 3,972,038 $ 2,496 $ 831.495 $ 3,143,039 Cash and investments with fiscal agents 40,021,632 1,286.251 - 41,307,883 Accrued interest receivable 723 - 359 364 Due from other governments 563,056 33,333 187,206 409,183 TOTAL ASSETS S 44.557,449 $ 1322,080 $ 1,019.060 $ 44.860,469 LIABILI'PIFS Accounts payable $ 539,429 $ 11,204 S 111,693 $ 438,940 Deposits and other liabilities 2,261,720 216,525 668,461 1,809,784 Due to other governments 3,199,003 2,417 - 1201.420 Due to bondholders 38.557.297 853,028 - 39,410,325 TO TAI_ LIABlurn.s $ 44.557,449 $ 1,083,174 $ 780,154 $ 44,860,469 See independent auditors' report. - 164- CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS - 165 - CITY OF LAKE ELSINORE, CALIFORNIA CAPITAL ASSETS USED IN OPERATION OI' GOVERNMENTAL ITNDS SCHE IN TE BY SOURCE For the vear ended June 30,201-1 GOVT RNMEN'FAL FUNDS CAN -At, ASSEI'S: Land $ 2,926.422 Ruilding and structures 16,664.777 Improvements other than buildings 7.960311 Machinery and equipment 2,378,054 1'tuniturc and tistures 715,135 Automotive 1982275 1 n Gastructurc 182.642.462 Construction hn progress 12,063,686 I'O'I AL GOVERNME:N I'AL FUNDS CAPITAL ASSETS $ 227.340.123 INVESTMENTS IN GOVERNME U N "['At, FUNDS CAPITAL ASSETS BY SORCE: General Fund $ 109,104,503 Supplemental LnW Enforcement Service Special Revenue Fund 102,366 Justice Assistance Grant Program Special Revenue Fund 37.775 Office of F,aflic and Safety Special Revenue Fund 672.037 Fiaffic Offender Special Revenue Fund 149,633 Gas fax Special Revenue Fund 2,904.003 Transportation - Measme A Special Revenue Fund 3.525.807 'I aft is Safety Special Revenue Fund 5.959 City -Wide Lighting and Landscaping Special Revenue Fund 57.059 Air Pollution Special Revenue Fmnd 239.059 C.D.B.G. Special Revenue Fund 1,702,901 Developer Agreement Revenue /Tnnst Special Revenue Fund 1_,835.917 City Hall /Public Works Special Revenue Fund 165.611 Community Center Special Revenue Fund 55,001 Lakeside Facilities Special Revenue Fund 643.609 Miscellaneous Grants Special Revenue Fund 5,296.404 N.P.D.F.S. Special Revenue Fund 132736 SR821 Pedestrian Sidewalk Special Revenue Fund 80,058 Miscellaneous Geneal Projects Capital hojects Fund 27221,120 Park improvement and Development Capital Projects Fend 11384,830 Fire Station Capital Projects Fund 170,990 Street Capital Improvements Capital Projects Rind 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 Improvement In -Lieu Capital Projects Fund 393,064 TUMF Capital Projects Fund 1,616,233 Boat Launch Capital Projects Fund 4,326.306 Assessment Districts Capital Projects Fund 59,70(1,935 I'OTAL INVDSTMFN1 :S IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE $ 227.340,123 See independent auditors' report. 166- STATISTICAL. SECTION DESCRIPTION OF STATISTICAL SECTION CONTENDS .tune 30, 2012 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: Pa[;es 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. 168- 177 Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 179- 183 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. 184- 190 Demoraphic 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. 191 - 192 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. 193 - 196 - 167- CI FY 01: LA KE 8ISIN ORES NE Y ASSETS BY COMPONENT Last Ten Fiscal Years (accrual bases of acconnling) Source: City Finance Department 168- Fiscal Yeal' 2003 2004 2005 2066 Governmental activities: Invested in capital assets, act of related debt $ 78979,255 $ 76,438,068 $ 79,194,299 $ 86,605,543 Restricted 64.336,191 64,509,263 76,616,021 135,197,478 Unrestricted (11 1.687,867) (107,107,310) (103,129,508) (93,977,441) Total governmental activities net assets: .$ 31,427,579 $ 33,840.021 $ 52,680,812 $ 127.825,580 Source: City Finance Department 168- 2007 2008 2009 2011 2012 $ 97,369,896 .$ 125,539,928 $ 141,5501858 $ 142,968,348 $ 141.427,875 134,976,102 173307,658 151.937522 122,099,858 110,984,917 134,777.767 141,619.986 (92,504,071) (96.242481) (96,792,528) (93,859,128) (110,573961) (48.524,474) 178.173.483 $ 181.236,969 $ 166.858,188 $ 160,094,137 $ 165.631.681 $ 228,071,614 - 169- CI FY OP LAKE IiLSINORE CI IANGBS IN NI�f ASSIa :S EXPENSES AND PROGRAM RFVl NUBS LastTen Fiscal Years (accnral basis of accounting) Seat cc: City Finance Department 170- Fiscal Year 2.003 2004 2005 2006 Expenses: Governmental activities: General government Sh 10,884,758 $ 9,938,841 12.208,992 $ 12,700,900 Public .safety F602,363 5,707,203 7,375,602 8,369,753 Community development 2,146,985 3,534,782 3,083,947 12. I I Public scrvices 6,165,477 5,833,376 8,404,675 ,009,E 8,739,770 Community set vices 3,819,864 4,008,347 3,994,151 3,519,545 Interest on long -term debt 14,205,151 10,935.104 11,077,433 11,146,325 Total governmental activities expenses 41,824,598 39,957,653 46.144.800 56,485,904 Progrmn revenues: Governmental activities: Charges for services; General government 6,474,617 5,874,918 10,081.980 12,199,668 Public safety 184,242 25,259 "19,824 44.919 Community development 1,923,284 1,880,802 4,864,686 11,334,631 Public set vices 4,920,172 92,933 70,631 73,260 Community services 577,152 1,624,467 1.658,146 1,677,140 Operating grants and contributions 387,815 3,807,619 3,586,701 2,600,374 Capital grants and contributions 709,009 - 4,332,067 49,777,269 Total governmental activities program revenues 15,176,291 13,305998 24.634035 77,707,261 Net revenues (expenses): Governmental activities (26.648,307) (26,651,655) (21510,765) 21,221,357 Total net revenues (expenses) $ (26,648307) $ (26,651,655) $ (21 j10,7(5) $ 21,221,357 Seat cc: City Finance Department 170- Fiscal Year 2007 2008 2009 2010 2011 2012 $ 10.4 14,729 $ 8.195,897 $ 10562,122 $ 10251727 $ 11.079,707 $ 11,944,507 11686.158 14,293269 13,139,389 11.022,531 1 1,212,605 1 1,91 1.363 21,514,552 32,342,175 31,976,146 15,842532 16,060,065 4,989,313 9,867.133 10,861,673 14,123,738 14,812.199 8,145;956 9,834.764 6.801.741 6,013,006 4,737856 4.295.7 11) 4,704,242 7,010.026 11,531.570 10.145.830 10,168,917 10,509.806 7.674,342 8.835,312 71.815.883 81,851.950 84,708.168 66,740,514 58,876,917 54,525.285 9.204.517 6.885.167 4.828.438 3,181,706 3,167,346 3,035324 4,362,650 3,960,353 1,064,036 924,493 1,508,526 1,247,117 1,364,513 1,422,754 1,482,146 1,578,779 1,586,602 1,578,318 5,043,547 4,109.188 6,482,888 4,561,669 3,292,972 3,306.452 42.085.516 2,159998 - - 6,573,426 4,532293 61060,743 18,537,260 13,857,508 10,246.647 16,128,872 13,706.504 (9,755,140) (633 14,590) (70,850.660) (56,493,867) (42,748,045) (40,818,781) $ (9,755,140) $ (63,314.590) $ (70,850,660) $ (56693.867) $ (42,748,045) $ (40,818,781) 171 - CI IY OP LAKII I:!LSINORII CI IANGI'S IN NIT ASSLfS GP,N6RAL REVENUES LastTen Fiscal Ycais (accrual basis of accountine) Source: City Finance Department 172- Fiscal Ycal' 2003 2004 2005 2006 Genclal revenues and other changes in net as'scts: Govemtnental activities: Taxes: Properly taxes $ 11,218,220 $ 10,891,618 $ 16,521,561 n 23,190,099 Sales taxes 5,084,099 5,2741927 6,133,299 6,367,466 Fianchise taxes 884,455 996,394 1,138,484 1,473,018 Other taxes 124,292 515,018 731.100 1,093,484 Pines, Forfcitmes and Penalties 365,803 377.262 427,975 481,065 Investment Income 7,061,692 7,735,043 8.230,698 11,217,026 Miscellaneous 1,300,198 2,147,938 3,400,243 4,852,432 Gain on Defeasance of Bonds 8.588.374 - - - Special Item- Revenue from Forgiveness of Debt 324,678 - - - Special 1tclil- Gain oil Settlement ofLong- tenmDebt 6,724,591 - - - Special heal - I-xtraortlinary Gain on Dissolution ofthe Redevelopment Agency - - - - "hotal governmental activities 41.676 -402 27,93li.200 36,589360 48- 674,590 Changes in net assets Govemnlental activities 15,028.095 1,286,545 15,078,595 69,895,947 1 -otal fit maiy governmenl $ 15,028.095 $ 1.286,545 $ 15,078,595 $ 69.895,947 Source: City Finance Department 172- Fiscal Yeal 2007 2008 2009 2010 2011 2012 26.685,369 $ 33,307,785 $ 31,590,868 $ 25,904,948 $ 24,237,023 $ 14,698,032 7,836,334 8,148,355 6,414,419 6,236.748 7,190,695 7,444947 1,688,010 1,768,178 1,824,890 1,792,699 1,913,807 2,002,550 1,02M88 770;024 751,794 519.001 483,556 538,402 599.894 918.619 937.506 731792 972,457 1,850,398 17.220,975 14,271,312 9,334,141 7,470.635 7,782,639 8,031,256 5,839,608 7193.803 5,768,257 6,661.239 5,705;112 6,992,813 - - - - - 61,700.316 60,890978 66378.076 56,021,875 49,319,062 48.285.589 103,258714 51.135,838 3,063,486 (14,228,785) (7.174,805) 5,537544 62,432933 $ 51.135,838 $ 3,063,486 $ (14,228,785) $ (7.174.805) 5.537.544 $ 62,439,933 173 - CITY OF I,AKF ELSINORE FUND BALANCES OFGOVFRNMF.N'FAL FUNDS Last Ten f=iscal Years (modified accrual basis ofaceounting) General kind: Nonspendable Unassigned focal general fund All other goveinmental funds Nonspendable Restricted fm- Debt service Capital projects Other Assigned to: Capital projects funds - _ Unassigned in: Special revenue funds - - Debt service funds - _ Capital projects funds - - lbtal all other governmental funds Note: 6ASR 54 was implemented in 2011, prior years have no comparable data. Source: City Finance Department -174- 2003 2004 2005 2006 General fund: Reserved $ 10.603.350 $ 9,607.894 $ 9,744,980 $ 8,796,782 Unreserved 5,115.310 5.174923 8,067,151 15.829.308 Total general fund $ 15,718,660 $ 14,782.817 $ 17,812.131 $ 24.626.090 All olltcrgovernmcntal funds: Reserved $ 124,515,734 $ 122.139124 $ 126.093,490 $ 185,264,579 Unreserved. reported in: Special revenue funds 4894,111 7,686,320 5,010,728 6382,838 Debt service funds (3,523,760) (8.665,854 (7,503,643) (11,915,554) Capital projects funds (5,395,439) (50.687) 7,608,315 9,141,046 "focal all other governmental fonds $ 120.490.646 S 121,108.903 $ 131,208,890 $ I88.872,909 General kind: Nonspendable Unassigned focal general fund All other goveinmental funds Nonspendable Restricted fm- Debt service Capital projects Other Assigned to: Capital projects funds - _ Unassigned in: Special revenue funds - - Debt service funds - _ Capital projects funds - - lbtal all other governmental funds Note: 6ASR 54 was implemented in 2011, prior years have no comparable data. Source: City Finance Department -174- Fiscal Year 2007 2008 2009 2010 201 - 175- 9,936,8Y9 I 9,4Y6,3» y 8. 80.684 $ 8,Y 93, 16 $ $ 10,496.356 9,285 492 8.762,248 6,323.801 - - 20,431215 $ 18.761.847 $ 17342932 $ 14,917,319 $ 215,008,475 $ 188,270,868 $ 163,563,859 $ 161,473,544 7.921 A15 10,731.428 5,241,416 6,999,090 - - (10,006,673) (5,375,005) (3,841,954) (28,305.645) - - 13,041,510 8,824174 2,966 973 5.497.137 - - $ 225.964.727 $ 202,451,565 $ 167.929,594 .$ 145,664,126 4,027,179 $ 2,505,503 - - - - 10.788.602 10,826.885 14.815,781 $ 13,332,388 84,348,929 $ 76.688.811 - - - - 81,289,209 69,769,754 - - - - 9,352,394 2,435.730 - - - - 14,639,940 7,087229 - - - - 11255,852 12,548,403 - - - - (214,942) (969,355) - - - - - (31948,107) (18,246) - - - - (4,899,269) - 162,824.006 $ 167.542.326 - 175- CITY OF LAKE GL SWORE CIIANGGS IN FUND BALANCE'S OF GOVERNMENTAL FUNDS LastTen Fiscal Years (modified accrual basis oFaccotmti I g) Fiscal Year 2003 2004 2005 2006 Revenues: ]'I opeity taxes $ 1O,960,120 $ 10,891,618 S 16,521,561 $ 23,190,099 Othertaxcs 6350.946 6,786,339 7.192,270 9,265,130 Licenses. permits and fees 4.784,007 4,888,957 9,133,887 18,047,742 Inteigovenmicntal cvenues 4,685- 876 3,807 -619 3,586,701 2.600.374 Charges for services 3,082.673 3,1 13,391 6,019,081 5. 712,480 Fines, forleiwres and penalties 365,803 377;262 427,975 481,065 Investment income 7.350,982 7.793,901 8,302,080 11,290,353 Special assessments 1379A09 1 X196,031 1.562,300 1,569,396 Contributions from properly owners - - - 49,777,269 Miscellaneous 3.338.771 2,147938 3.400,242 4,852,433 Total revenues 41298587 41303,056 56,146,097 126.786,341 Fx bendimres ('I]] I'cut: General government 5,514,205 3,993,019 6,673,543 5,319,941 Public safety 4,527,765 5,650,526 7,375,602 8,369,753 Community development 2.146.985 3.469.142 1083,947 5,853,938 Public services 4,837,013 4.465,356 7,067,549 7,385,171 Community services 3,138,577 3.310,108 3,306,649 1823,109 Pass - through payments 2,801,592 3,033,654 3,957,978 5,671,146 Set aside suspension - - - - SE'RAP payments - - - - Capital outlay 2.228 -982 2,649,498 2,055,243 17,094,933 Debt service: Payment to refunding bond escow agent - - - - 13ond issuance costs - - - - Principal retirement 2,786,033 3,853.166 3,828,484 4,023,167 Interest and fiscal charges 10,678,462 11,254.303 11,008,078 11,097,091 Debt issuance costs 2,484,161 3.500 - - Total expendimres 41,143,775 41.682.272 48. 357.073 67,638,249 Fxcess (deficiency) of revenues over (under) expenditures 1,154,812 (379,216) 7.789,024 59.148,092 Other financing sources (uses): I)ansfmin 501,913 26,486,109 5.423,965 1,823,891 Transfers out (501,913) (26,486,109) (5,423,965) (1,823,891) Settlement (1,250,000) - - - Contribution to RDA (1,947,000) - - - Pioceedsofrefundingbonds 31,570,000 - - - Debt issuance - - 391,811 81,065 Loans issued - - - - Icail payments - - - - Premium on bonds - - - - Bond discount - - - - Refunding and tax allocation bonds issued - _ - Capital debt issued - - - - Payment to refunded bond escrow agent (31,666,626) - - - 'Fetal other financing sources (uses) (3,293.626) - 391,811 81,065 Net change in fund balances $ (2,138.814) $ (379,216) $ 8.180.835 $ 59,229,157 Debt service as a percentage of noncapital expenditures 41.0 °GI 38.7% 32.0% 29.9% Sconce: City Finance Department - 176- Fiscal Ycm 2007 2008 2009 2010 2011 2012 $ 26,685369 $ 33,307,785 $ 31,590,868 $ 25,429,344 $ 24,443,046 $ 14,738,584 10,503,108 10. 741,363 2071,246 8,517.826 9,552873 9.911.400 7,775,477 6,266.086 2,267,568 2,587.918 3,291,938 2,908.091 2.700,185 4,109,188 3,630,144 7,322,908 4,680.095 6,193.777 5,791,690 4,579,433 3,548413 1,594,774 1,383,934 1,374,351 599,894 918,619 937,506 733,792 972,457 1,850,398 12268,845 14,237,891 9,445,099 7,928,611 7,147,497 7,180.018 1,364,513 1422.754 1,482,146 1,578.779 1,586,602 1.578.318 42,085.516 2,159,798 - - 5,352,614 1,221.184 5,839.008 7,193.803 5,768,257 6,910,516 5.608,837 7,384,749 120.614.205 84,936,720 67.741247 62,604,468 64.024.893 54.340.870 8,548,606 6,190,346 6,479,795 6,797,320 8,904,165 7,467,755 1 1,68(1,158 14,293,269 13,139,389 11,021531 11,212,605 1 1,91 1,364 3.481,278 4,549,297 4.662,003 3,049501 18,805,484 1608.782 8,431,702 9,321.939 12,202,971 12,901,064 6,221,286 7,800.095 6.063,747 5.221,331 3,750,267 3,313.082 3,714,646 5,963.873 7.006_.699 9_.878_.294 9,647,322 7,782,513 7,655,170 3,542,473 - - - 3,750,000 - - - - - 6,976,853 1,43(1,411 - 25.236,661 49,056.332 38,113,875 4394.834 2,931,038 10,268.753 - - - 1,982745 1,832,080 - - 1.213.789 - 1,584,965 1,874,527 238,290 4,970674 3,872,984 5,469,538 6,037,770 6,928,822 6,091,578 11.492,802 10,132,679 10,066,977 10318.720 9,046,095 7,951,971 86,927.327 113,730,260 103.532,137 79,916,898 80562329 62,844,934 33,686,878 (28,793,540) (35,790,890) (17.312,430) (16,537,436) (8.504,064) 2089,415 6,412,891 4,386,162 4,500,694 6,186,205 2,508613 (7,089,415) (6,412.891) (4.386, 162) (4,500,694) (6,186,205) (2,509,613) - - - 26,290,000 47,780,000 - - - - (23,235,000) (27,495,000) - - 274926 - - - - - (37117) - (166,785) (621,302) (3(1,000) - 22,295,000 - 26,290000 39,595,000 1,405,000 - 3,265.000 - - - - - (22,221.899) - (22,082,648) (25,662,920) (1345,000) - 3,609,010 - 7,095,567 33,595,778 30,000 $ 33,686,878 $ (25)84,530) $ (35.790,890) $ (10216,863) $ 17.058342 $ (8,474,064) 26.7% 23.5% 23.7% 26.0% 25.0% 27.0% 177- THIS PAGE INTENTIONALLY LEFT BLANK 178- CITY OF LAU, F-LSINORI DIRECT AND OVERLAPPING PROPER'IY'hAX RMFS Last'fen Fiscal Years (rate per $100 of taxable value) Penis Union Nigh School 0.01748 00156 001194 011235 0,03222 00211 0.02031 0,112686 003126 003429 Total Diect and Overlapping'' Tax Rales 1 02418 1 .04287 103397 1 .04305 1 .04270 1 .06108 L0772_s 108855 1.08915 1.09268 City's Share of 1% Levy Par flop 13' 0.17415 017415 0.1746 017415 0.17415 0.1740 0.17415 0.17415 017415 0.17415 General Obligation Debt Rate RDA basic talc' 100670 100610 1.00580 104520 1.00470 100450 1.00430 1.00430 100370 1.00370 food Direct Rate' 0.63470 061268 058827 057653 053996 031615 451762 0.53493 0.53269 0.53269 Notes: IIn 1978, the voters of the State of California passed Proposition 13 which set the property tax rate at it 100% fixed amount. '['[its 1.00% is shared by all taxing agencies 101 Which the subject property resides within. In addition to the 1.00% fixed amount, properly 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. 'City'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. 1-'RAP general food tax shifts may not be included in tax ratio figures. 'Redevelopment Agency (RDA) rate is based on the largest RDA lax rate area (PRA) and includes only ratc(s) front indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property, values 'Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. Source: Riverside County Assessor 2002/03 - 2011112 "fax Rate fable and Annual I'm Increment Tables -179- Fiscal Year Agency 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 ('try Basic Levy' 1.00000 1.00000 1.00000 100000 1.00000 1.00000 100000 1110000 1 0000 1.00000 Fast Municipal water 0 00000 000000 0 00000 0 00000 0.00000 0.00000 0.00000 0.00000 0 00000 0.00000 Mend ee School Disu'ict 0,00000 0 021 17 001625 0 01435 0.00578 0.00549 0.02370 0.03254 003436 0.113486 Metropolitan water District 0.00670 0.00610 0.00580 0.00520 0.00470 0.00450 000430 0.00430 0.00370 0.00370 perils School Disuict 0. 00000 0.00000 0.00000 0.00o00 0.00000 0.02999 0.02894 0.02485 001983 001983 Penis Union Nigh School 0.01748 00156 001194 011235 0,03222 00211 0.02031 0,112686 003126 003429 Total Diect and Overlapping'' Tax Rales 1 02418 1 .04287 103397 1 .04305 1 .04270 1 .06108 L0772_s 108855 1.08915 1.09268 City's Share of 1% Levy Par flop 13' 0.17415 017415 0.1746 017415 0.17415 0.1740 0.17415 0.17415 017415 0.17415 General Obligation Debt Rate RDA basic talc' 100670 100610 1.00580 104520 1.00470 100450 1.00430 1.00430 100370 1.00370 food Direct Rate' 0.63470 061268 058827 057653 053996 031615 451762 0.53493 0.53269 0.53269 Notes: IIn 1978, the voters of the State of California passed Proposition 13 which set the property tax rate at it 100% fixed amount. '['[its 1.00% is shared by all taxing agencies 101 Which the subject property resides within. In addition to the 1.00% fixed amount, properly 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. 'City'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. 1-'RAP general food tax shifts may not be included in tax ratio figures. 'Redevelopment Agency (RDA) rate is based on the largest RDA lax rate area (PRA) and includes only ratc(s) front indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property, values 'Total Direct Rate is the weighted average of all individual direct rates applied by the government preparing the statistical section information. Source: Riverside County Assessor 2002/03 - 2011112 "fax Rate fable and Annual I'm Increment Tables -179- CITY OP LAKE; ELSINORE PRINCIPAL PROITH I'Y FAX PAYERS Current Year and Nine Years Ago 1'nxpnver 100 East Wisconsin Avenue JV Pacific Agcregates, Inc. Mohr Affinity, LLC Castle and Cooke. Lake E.Isinroe West JPMCC 2006 -LDP6 Lake Idsinore Broadstone 12ivm:s Edge Pacific Clay Products, Inc Richmond American Homes of Mapland Elsinore Valley Witter and Sewer Facilities Costco Wholesale MCO Outlet Ccnters 1,11 Albertsons, Inc. Wares Delaware Coiporation Oak Grove Equates Pardee Grossman Cottonwood Canyon KB Home Coastal, Inc. Richmond American Construction Co. California Harbor LP Louis P. DePasquale Comcast of California VII, tire, (1) 2011 -12 Local Secured Assessed Valuation: (2) 2002 -03 Local Secured Assessed Valuation: 2012 2( Percent of 'Dotal City "taxable Taxable I'axable Assessed Assessed Assessed Value Value (1) Value $ 50,629,808 1.29% - 47,953,485 1.220N) - 44,325,390 1.13 %. - 38,998,877 0.99% - 25.034,201 0.64% - 19.000,000 0.48% - 18,722,325 OA8% - 17,725,422 0.45 %, - 16,880,642 0.431% - 16,845,438 OA3% - - 0.00°/ $ 77,845,179 - 0.00% 15,120,701 - 0.00% 14,258,094 - 0.00% 12,077,104 - 0.00% 11,949,903 - 400% 10,087,029 - 0.00°/11 10,087,029 - 0.00% 9,492,447 - 0.00% 8,632,935 - 0.00% 8,594,017 $ 296.115,648 7.55% $ 178,144,438 $ 3,923,526,176 $ 1,653,495,209 Source: Riverside County Assessor 2002/03 - 2011/12 Combined Tax Rolls. - 180- 103 Percent of Total City Taxable Assessed Value (2) 0.00% 0.00% 0.00% 0.000/1, 0.00% 0.00% 0.00% 0.00`9. 0.00% 0.000 /,l 4.71% 0.91% 0.86% 0.730GU 0.72% 0.61% 0,61% 457% 0.52% 0.52% 10.77% CI I'Y OF LAKI: USINORE PROPHRI'Y TAX LEVIIS AND COLUCIIONS Last Ten Fiscal Years Note: The amounts presented include City of Lake F.Isinore property trues only (excludes Redevelopment Agency taxes). (I) Collections Ieccivcd through Januory 31, 2013. Sources: County of Riverside, Auditor - Controller City ofLake P;Isinore Finance Department 181 - Collected within the Fiscal "taxes Levicd Fiscal Year of Levy Collections in Total Collections to Date Yearinded lot the Percent Subsequent Percent June 30 Fiscal Year Amount of Levy Years Amount ofLcvy 2003 $ 1,035,888 $ 1,193,908 115,25% $ 12.436 $ 1,206,344 116.46% 2004 1,091,168 1,129.675 10353% 99,982 1,229,657 112.69% 2005 1.327.699 1A05.509 105.860/,, 313,819 1,719,328 129.50%, 2006 1.446,320 1,742,413 120.47% 227,007 1,969,420 136.17% 2007 1,714,890 2,131,576 114.30% 212,538 2,344,114 136.69% 2008 2.208.181 2,313,581 104.770/4 143,942 2,457,523 111.29% 2009 2,230,658 2254,961 10I.091Yo 74,601 2329,562 104.430M, 2010 1.894.552 1.958,553 103.38% 138,415 2,096,968 110.68% 2011 1900,256 1,797,763 94.61% 113,784 1,911,547 100.59% 2012 1_874,319 1,770,492 94.46% 64,528 (1) 1,835,020 97.90% Note: The amounts presented include City of Lake F.Isinore property trues only (excludes Redevelopment Agency taxes). (I) Collections Ieccivcd through Januory 31, 2013. Sources: County of Riverside, Auditor - Controller City ofLake P;Isinore Finance Department 181 - CH Y OF LAKE LSINORE ASSESSED VALUE AND ESTIMATED ACTUAL. VALUIi OFTAXABLE PROPERTY Last Ten Fiscal Years Fiscal Year Ended June 30 Secured Unsecured 2003 $ 158,974.975 $ 63,785,234 2004 1,866,612,714 71,494,000 2005 2.182.647.610 93.461.511 2006 2,782,774,310 88,651,279 2007 3,586,255.450 84,367,728 2008 4.805.775.656 119.981,392 2009 4,813,256,755 114,151,249 2010 3,957,220,879 104,899,011 2011 3.780,32 1,503 148.430.445 2012 1777.595,058 145.931,118 Notes: Exemptions at netted directly against the individual property categories. n/a =not avai lab lc Assessed Value 222.760,209 1,938,106,714 2.276, 109,121 2,871,425,589 3.670_623,1 78 4,925,757,048 4,927,408,004 4.062.1 19,890 3,928.751 M8 3.923,526,176 In 1978 the votei:s of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of I °/ 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 anew owner. At that point, the new assessed value is reassessed at the purchase price of the properly sold. (lie 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. Sourcc: Riverside County Auditor - Controller 2002/03 - 2011/12 Combined Tax Rolls - 182- 183 - Redevelopment ALcilcy Taxable total Assessed Ditect Tax Seemed 1)a SCCLII C(I Value Rate $ 1,061,846,886 $ 61,221,639 $ 1,123,068,525 0.63470 °/, n/a n/a n/a 0.61269% 1,309.466,152 88,347,530 1,397,813,682 0.58827% 1,614,383,654 81665,786 1,697,049,440 0.57653% 1,917.886.856 79,195,924 1.997.082.780 0.53996°/ 2393,710,398 100,647,142 2,494,357,540 0.516151/. 2,411,198,603 91,268,375 2,502,466,978 0.51762'% 2.077.411999 83,367.167 2.160.779,166 0,53493% 1,998.889.644 79,994,003 2,078,883,647 0.53269% 1.955.649.172 78,927,893 2,034,577,065 0.52091% 183 - CI "I'Y 0121 AKE ITSINORF, RATIOS OF OUTSTANDIN6 DER I' BY 'fYPF Last Ten Fiscal Years Notes: Details regarding I ic City's ouutanding debt can be Ibund in the notes to the financial statements. Source: City Finance Department: California State Department of Finance - 184- (ioyeinntental Activities Fiscal Yell Local Tax Subordl [late Revenue/ Devc1opet/ Ended Agency Allocation Tax RBVCnuC Refunding Owner June 30 12evcnue Bonds Bonds Bonds Bonds Agreements 2003 $ 60,375,0(10 $ 59,290000 $ - $ 15,660,(100 .fi 3,098,473 2004 593 15,000 58310 -000 - 75,660.000 2,704.814 2005 58,285;000 57,320,000 - 1?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 1263;574 2011 64,220000 60,080,000 4,610000 13,365,000 3,074763 2012 61,835,000 58,580.000 4,610,000 12,975,000 2,790,191 Notes: Details regarding I ic City's ouutanding debt can be Ibund in the notes to the financial statements. Source: City Finance Department: California State Department of Finance - 184- - 185- Governmental Activities (Continued) Insurance Total Percentage Debt Notes /I,oans Capitalized Prcmium OPE13 Governmental of Personol per Pavable Lease Deposit Pavable Obligation Activities Income Capita $ 1,710,407 $ 28,185 .$ - $ - $ 140,162,065 26.82% 4,489 1270,901 57,992 - - 137,318,707 23.85% 4,109 1,055,676 306,398 - - 137.060.084 20.93% 3,817 1,012,501 234.021 - - 134,157,982 18.28% 3,513 403,126 166,532 - - 130.283,308 15.30% 3,165 356,589 93,478 - - 131.285,324 12.75% 2,760 307,542 20,316 537,869 1,048,397 128,980,165 11.90% 2,604 256,760 - 518,521 2086;786 128,135,641 12,03% 1546 204,046 - - 2,877.575 148.427384 15A8 %n 2,911 115,336 - - 4,706,761 145.612.288 1354% 2,746 - 185- Fiscal Year Ended June 30 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 CFFY OP LAKI GLSINOI21 lZAI'10 OF (31 NB12AL BONDED DI313i OUTSTANDING Last] ell Fiscal Years Outstanding General Bonded Debt Pax Allocation Bonds Total 59,290,000 58,310,000 57,320,000 56,280,000 55,175,000 54,010,000 52,785.000 54,545,000 W080000 58,580000 59,290,000 58,31OMOO 57,320,000 56,280000 55,175, 000 54,010,000 52,785.000 54,545,000 60,080,000 58,580,000 Percent of Assessed Value 26.62% 3.01% 2.52% 1.96% 1.50°/ 1.10% L07% 1.34 °No 1.53'7, 1.49'Yn General bonded debt is debt payable with governmental Iund resources and general obligat ion bonds recorded in enterprise ILnds (ofwhich, the City has none). Source: City Finance Department 186- Per Capita 1,899 1,745 1,596 1,474 1,340 1.135 1,066 1,084 1,178 1,105 CH 01: LAKE LLSI NOR F_ DIRIV I' AND OVERLAPPING DI 131 .[true 30.2012 2011 -13A ssessed Valuation 1.430% S 3,9275'_6,176 12edevelopmcnl Ageno, Incrcmeurd Valuation 1.430% 2 -,034 577065 Adjusted Assessed Valuation 1.43090 S 5,958,103,241 Mount San Jacinto Connnunity College District Gcncral Fund Obligations .3.789% Percentage Outstanding 29.140% Applicable (1) 1Ma6 /30/12 Qyerlappi ne'fart and Assessment D bl. 30,675 000 Man, fee and Perris School Districl Certificates of Peracipa6on Rivcrsitic County Flood Control District Zone No 3 Bend it Assessment District 48.156 °,0 11 2380,000 Metropolitan Water Distnct 00971 196 545,000 Parris Union High School Dist, ct L 119 ",0 53,032,260 Mendre Union Sdtool Distnct 1.70790 44,933922 Perris Schcol District 0.392% 7,364,571 Lake Elsinoic ifinfied School District Communi ty Facilities Dimurts 100000 °0 24347,327 City of Lake Elsinore Community Facilities District No 88 -3 10000090 25,610,000 Cie., .1 Lokc 1-kn n e Community Facilities District No 90 - -2 100000% 13,805,000 Cty of Lake Ekstrom Community Facilities District No 95-1 100_000% 1,405,000 Clay of Like I Isinnre Community Facilities Disurr No 98 -1 10000010 17,440,000 City of lake Elsinn e Community I acilifics Distort No 2003 -2 100000 °10 31 915,000 City of Lake Elsinne Community I: militias District No 2004 -3 100000% 45,240,000 City of I A, I lanorc Community Facilities District No 2005 -1 10000091. 8, 7711,0(1(1 City of Lake Fdsinore Community Facilities District No 2005-2 100_000% 24355,000 city ofl_alce1-kinore Connor ... ty Facilities District No. 2005-5 10000090 3,265,000 City of hake His lnomCom fairly I aches Disomt No 0005 -6 100.00096 3,475.000 CovofLske 6l sin are Community Facilities District No, 1006-2 100000"0 7,185,000 City of Like I2.Isinae 1915 Act Bonds 100.000% 18638,058 "Focal overlapping lax and assessment debt Daect and Oveu�rlano- General )'and Del, Riverside County Gencrul Fund Obligations 1.430% S 655,042,180 Riverside County Pension Obligations 1.430% 357540,000 Riverside County Board of Education Cea revues of Pauicipmion 1.43090 5,055,000 Mount San Jacinto Connnunity College District Gcncral Fund Obligations .3.789% 11,950,000 Lake Elsinore Unified School Districl Cerulicates of Partictpanon 29.140% 37,670,000 Perris Union High School Districl General 17und Obligations 1 119% 30,675 000 Man, fee and Perris School Districl Certificates of Peracipa6on 1 707 & 0392 % 14,345,000 City .1 ].like Elsinore General Ivnd Obligations 100.000% 12,975,000 Flsina'e Water District CerGGeates of Participation 4x067% 183,319 Ortega frail Recreation and Park District Certificates of Pau, patioa 36.62.3% 75,000 Total gross direct and overlapping general fond debt Less: Riverside County Gcncral Fund self - supporting obligations 'fntal nd direct and overlappurg general land debt Gross combined total debt (2) Net total direct and overlapping debt Notes: (I )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, catclprise 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 City. ']'his 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, tire entire debt burden bonze by the residents and businesses should be taken into account. However, Ills does not imply that every taxpayer is a resident, and flue efore responsible for repaying the debt, of each overlapping government Source: California Municipal Statistics - 187 - City's Share of Overlapping Debt 6/30/12 S 1,146,113 190,649 593,431 767,022 28,869 24,347,327 25,610 000 13,805,000 1,405,000 17,440 000 31,915,000 45,240,000 8,770 000 24 355,000 3265,000 3,475,000 7,185,000 1$638,058 S 228,176,468 9,367,103 5,112,822 72,287 457,786 10,977,038 343,253 134,475 12,975,000 88,116 2-7.467 39,550,347 177 261 s 39,373,086 S 267,726,814 S 267,549,553 Assessed valuation Conversion percentage Adjusted assessed valuation Debt limit percentage Debt limit Focal net debt applicable to limitation Legal debt margin Total debt applicable to the limit as a percentage of debt limit CITY OF LAKE ELSINORE I TGAL DEBT MARGIN INFORMATION Last "fen Fiscal Years Fiscal Yell 2003 2004 2005 2006 $ 1_626,026,872 $ 1, 907367.963 $ 2,243,178,491 11 2,851,510,537 25% 25' %, 25 %, 25% 406506,718 476,841,991 560,794,623 712,877,634 15% 15% 15% 150/1, 60976,008 71,526,299 84,119,193 106,931,645 $ 60.976.008 $ 71- 526299 S 84.119,193 $ 106.931,645 0.0% 0.01%) 0.019u 0.0% The Government Code of the State of California provides for a legal debt limit of 15 %of gross assessed 1- lowever, this provision was enacted when assessed valuation was based upon 251% of market value. Effective with the 1981 -82 fiscal year, each parcel is now assessed at 100IN, 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 stair,_ Sources: Rivet side County Assessot's Office City Finance Department 188- I-'iscal Ycar 2007 2008 2009 2010 2011 2012 $ 3,648,621,060 $ 4,887,272,022 $ 4,886,172664 $ 4,019,961,300 $ 4.062,119,890 $ 3,923,526.176 25% 25 %4 25% 25'74 25% 25% 912.155.265 1,221,818.006 1,221544.416 1, 004,990,325 1,015,529,973 980.881.544 15% 15 %, 15% 1541,, 15% 15'74 136,823,290 181271701 183,231,662 150,748,549 152,329,496 147,132,232 $ 136,823290 $ 183.272.701 $ 183.231.662 $ 150.748.549 $ 152329.496 $ 147,132.232 0.0'74 0.0 %, 0.0% 0_0% (MM 0.0'74 189- CITY 01: LAKI'" I LSINORt PLEDGED -RBVI NU6 COVERAGI, Last ]'ell Fiscal Years Notes: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Source: City Finance Department - 190- Successor Fiscal Ycar Redevelopment Tax Gnded Tax Increment Debt Service Allocation June 30 Revenue Principal Interest Coverage Bonds 2003 $ 9,824,602 9; 1,372603 $ 3,992.473 1.83 $ 59,290.000 2004 9,749,507 1.413940 3.635.594 1.93 58,310,000 2005 13,136,081 1,300,793 3,629,620 2.66 57320,000 2006 18,500,277 1,932,704 1888298 3.18 56,280,000 2007 21,112,545 2307,832 4,108,847 3.29 55,175.000 2008 26,484,367 1M8,978 3.663,448 4.95 54,010.000 2009 24,892,412 1,761.323 3558.405 4.68 52,785.000 2010 19,877,054 1,295,000 3,304,802 4.32 54,545,000 2011 19,004,495 1,195,000 2.315,314 5A1 60,080,000 2012 9,451,004 1,500,000 1,071,681 3.68 58580,000 Notes: Details regarding the City's outstanding debt can be found in the notes to the basic financial statements. Source: City Finance Department - 190- CI IY OF LAKE ELSINORI I DEMOGRAPHIC. AND ECONOMIC S['A FIST ICS Last "fen Fiscal Years Sources: (1) State Department ofFinance (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 urnds in the population are extracted from a variety, of data sources. (4) California State Employment Development Department - 191 - Personal Per Fiscal Year Income Capita Unemployment Ended Population (In Thousands Personal Rate June 30 (1) (2) Income (3) (4) 2003 31,225 $ 522,538 .$ 16,735 630%. 2004 33.423 575,658 17 223 630% 2005 35,905 654,965 18,242 5.80 04. 2006 38,185 734,050 19,224 5.20% 2007 41.164 851,375 20,683 4.90'% 2008 47567 1.029,928 21.652 5.80'%. 2009 49.528 1.083,488 21,876 820% 2010 50,324 1,065,544 21,174 13.20 °G. 2011 50M3 984,074 19.302 14.30% 2012 53,024 1M75,380 20.281 13.20% Sources: (1) State Department ofFinance (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 urnds in the population are extracted from a variety, of data sources. (4) California State Employment Development Department - 191 - Stater Rios (3 stores today) Walmart Costco E. V. M. W. D. Target Villa Siena Aparlments Lowe's Home Depot Golden Slate Concessions Alberlson's Inc. Cardenas Market Aerofoam Indusuies Lake Chevrolet Like Elsinore Storm /Golden State Concession CITY OF LAKE ELSINORE PRINCIPAL EMPLOYERS Current Year and Nine Yeats Ago 2012 2003 '"Dotal Rmployto en t" as used above represents the total employment of all employees located within City limits. Sources: City GIS Department California Employment Development Department -192- Percent of Pereelli of Numberot Total Numberof Total Employees fanployment Employees P.mployment 318 1.87% 140 1.40% 219 129% 250 2.50"% 172 1.01% - 0.001Y. 166 0,98°% 164 L64"% 144 0.85' %, - OA00% 128 0.75% 126 126% 121 0.71'% - 0,00"% 120 0.71'70 - 0.0006, 120 0.71'70 120 1.20%, 102 0.60% 210 2.10 " /0 88 0.52'/1 - 0.00% 68 0.40°% - 0.110'70 67 0.39% 109 1.090/. 63 0.37% 50 0.50"% '"Dotal Rmployto en t" as used above represents the total employment of all employees located within City limits. Sources: City GIS Department California Employment Development Department -192- Function General govenvnent Community Services ( includes Public works) Convnunity development Total CI PY OF LARD FLSINORF: FUI.I. IIMI AND PART -I IMF CI I-M1,0YFES RY FUNCTION Last'1'en Fiscal Yems Note: Police and Fire services at provided by the County of Riverside. Soul-cc: City Finance Deparunent 193- Fiscal Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 17 19 18 21 26 26 20 20 17 24 34 37 36 41 52 52 41 42 47 42 17 18 17 20 23 23 21 14 II 10 68 74 71 82 101 101 82 76 75 76 Note: Police and Fire services at provided by the County of Riverside. Soul-cc: City Finance Deparunent 193- CITY OI' LAKG L1.SINORI:I OP6RA'IING INDICATORS BY FUNC4ION Last Ten Fiscal Yews Function Police: Lake related boating enforcement citations I a-rardous ual'f is violations DUI a]Iests fire: (.ally Fire suppression equipment Public works: Centerline miles of paved surface sweets maintained Centerline miles of (lilt surface streets maintained Weed abatement -lots cleaned Community Development: Constntction permits issued Property value per permits (estimated in 000'3) New home building permits issued Parks and recreation: Daily lake use passes sold n/a- not available Source: City of Lake G,Isinorc, Various Departments - 194- Fiscal Yem 2003 2004 2005 2006 1,091 800 703 808 519 1,533 1.500 2,376 n/a ❑/a n/a n/a n/a 1120 3.391 3,610 n/a 3 3 3 135 140 140 140 21 21 21 13 860 890 552 706 1,838 2,361 3,516 4,260 $ 159,346 $ 153,186 $ 242.988 $ 462,204 550 766 1,317 1,355 26,550 28,500 26,530 34,835 2008 625 100 2,500 5,000 n/a n/a Fiscal Ycai 2009 2010 2011 2012 n/a 444 244 384 n/a 1,561 1,200 1.358 n/a 261 n/a 241 3,567 3,778 3.876 4,007 3,950 3944 3 3 3 3 3 3 143 155 174 173 173 174 12 10 9 9 9 9 700 581 390 365 470 452 2527 1.604 505 771 829 760 $ 153,013 $ 78,680 $ 21.474 $ 42,848 $ 50,899 $ 43,381 450 74 43 211 223 210 32,018 36,000 25,230 23,765 19,577 20.702 195- CITY OF LAID, ELSINORE CAPI'I-AL ASST I SFA HSTICS BY FIJNC "PION I..ast 1'en Fiscal Years Fiscal )'eat' Function 2003 2004 2005 2006 2007 2009 2009 2010 2011 2012 Police Stations I I I I I i I I I I File: Fie stations 2 2 _ 11 3 3 3 3 1 3 3 Public works: Strecl (miles) 1533 153.3 153.3 156 157 157 159 157 157 157 Lakcshote (miles) 105 10.5 10.5 10.5 10.5 10.5 105 10 5 10.5 10.5 Parks and remalion: Parks 12 12 12 12 15 15 IS 16 16 16 Beaches and Recreation Facilities 8 9 9 8 8 8 9 10 10 10 Ltbt al les 1 1 2 2 2 2 2 2 2 2 Stadium (Amphithealcr sous) 6,600 6,600 6,600 6,600 6,600 6,600 6.600 6,600 6,600 6.600 Lake (surface aces) 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 3,300 n/a =not available Source: City of Lake Elsinore, Various Depar0nents - 196-