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AGENDA
JOINT REGULAR MEETING
OF THE SAN JACINTO CITY COUNCIL AND THE SUCCESSOR AGENCY TO
THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY
January 21, 2014, 6:30 p.m.
625 South Pico Avenue
San Jacinto Community Center, San Jacinto, CA 92583
1. ORGANIZATION
1.1 Call to Order
1.2 Roll Call
1.3 Invocation
1.4 Pledge of Allegiance
1.5 Special Presentations
1.6 MAYOR/COUNCIL MEMBER REPORTS/DISCUSSIONS
2. PUBLIC COMMENTS
Now is the time for the public to address the Council on any subject within the jurisdiction of the City
Council not listed on the agenda. A limitation of three (3) minutes shall be set for each person desiring
to address the City Council.
3. JOINT CONSENT CALENDARS (SECTIONS 3A AND 3B)
The matters listed under Consent Calendars are considered routine and will be enacted by one motion
by City Council Members in the form listed. There will be no separate discussion on these items prior to
the motion unless members of the City Council, staff or the public requests a specified item be removed
and/or discussed. If an item is pulled, it will be heard after the balance of the Consent Calendar has
been voted on.
3A CONSENT CALENDAR - CITY COUNCIL
3A.1 Continuance of the Proclamation of the Local State of Emergency due to
the Severe Winter Storms that began on December 17, 2010 / Approve
/ City Clerk, City Attorney
3A.2 Waiver of Full Reading of Ordinance(s), and Reading by Title Only /
Approve / City Clerk, City Attorney
3A.3 Participation in the Riverside County Mortgage Credit Certificate
City Council Agenda
January 21, 2014
Page 2 of 3
Program / Approve / Management Analyst
3A.4 Warrants and Disbursements - December 2013 / Approve / Finance
Director
3A.5 Minutes of January 7, 2014 - Regular Meeting / Approve / City Clerk
3A.6 Independent Accountants' Report on Agreed-Upon Procedures Applied
to Appropriations Limit Worksheets for the Year Ended June 30, 2013 /
Approve / Finance Director
3A.7 Approval of Supplemental Law Enforcement Service Account (SLESA)
Grant Spending Plan (FY 2013-2014) / Approve / Police Chief
3B CONSENT CALENDAR - SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO
4. PUBLIC HEARING
4.1 Resolution Authorizing the Annex of Territory into Community Facilities District
No. 2003-1 and Declaring the Results of a Special Annexation Landowner
Election and Directing the Recording of an Amended Notice of Special Tax
Lien / Approve / City Manager, City Attorney
5. STAFF REPORTS
At the end of the scheduled City Department items, anyone wishing to discuss a consent calendar item
should come forward upon invitation of the Mayor; state their name, address, and the consent calendar
item number pulled. Speakers should limit comments to three (3) minutes.
5.1 Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal Year
Ended June 30, 2013 / Approve / Finance Director
5.2 Approval of Supplemental Law Enforcement Service Fund (SLESF) Grant
Spending Plan (FY 2012-2013) / Approve / Police Chief
6. CLOSED SESSION
6.1 CLOSED SESSION - CITY COUNCIL
6.1.1 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Case: United States of America v. City of San Jacinto; Case No.
EDCV12-1966
6.1.2 CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
City Council Agenda
January 21, 2014
Page 3 of 3
(Paragraph (1) of subdivision (d) of Section 54956.9)
Case: Bilal-Varney, et al. v. City of San Jacinto; Case No. EDCV12-
02191
6.2 CLOSED SESSION - SUCCESSOR AGENCY TO THE REDEVELOPMENT
AGENCY OF THE CITY OF SAN JACINTO
7. ADJOURNMENT
If you challenge any action of the City Council in court, you may be limited to raising only those issues you or
someone else raised at the public hearing described in this notice, or in written correspondence delivered to
the City Council (c/o the City Clerk) at, or prior to, the public hearing.
CHALLENGE TO LAND USE DECISIONS: Any person seeking to challenge a decision regarding land use
made by the City Council as a result of a proceeding in which by law a hearing is required to be given, shall
be required to commence that action 90 days following the date on which the decision of the City Council
becomes final as provided in Code of Civil Procedure Section 1094.6. Please refer to Code of Civil Procedure
Section 1094.6 to determine how to calculate when a decision becomes final.
It is the intention of the City of San Jacinto to comply with the Americans with Disabilities Act (ADA) in all
respects. If, as an attendee or a participant at this meeting, or in meetings on a regular basis, you will need
special assistance beyond what is normally provided, the City will attempt to accommodate you in every
reasonable manner. Please contact City Hall at (951) 537-6358, at least 48 hours prior to the meeting to
inform us of your particular needs and to determine if accommodation is feasible.
Any writing related to an agenda item for an open session of a regular meeting of the City Council that is
distributed less than 72 hours prior to the meeting will be made available for public inspection at the City
Clerk's office, located at 595 South San Jacinto Avenue, San Jacinto, California, and at the regular meeting
location - City of San Jacinto Community Center, 625 South Pico Avenue, San Jacinto, California - at the time
the writing is distributed to a majority of the City Council
DOCUMENTS RELATED TO OPEN SESSION AGENDAS (SB 343) -- Any public record,
relating to an open session agenda item, that is distributed within 72 hours prior to the
meeting is available for public inspection at the public counter located in the Administration
Building of City Hall, 595 S San Jacinto Avenue, San Jacinto, CA 92583
I, Richard Miller, City Clerk of the City of San Jacinto, do hereby certify that I caused to be posted the foregoing
agenda this January 16, 2014, as required by law.
Richard Miller, City Clerk
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Tim Hults, City Manager
SUBJECT: Continuance of the Proclamation of the Local State of Emergency due to
the Severe Winter Storms that began on December 17, 2010
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve to the continuance of the
Proclamation of the Local State of Emergency due to the Severe Winter Storms that
began on December 17, 2010.
DISCUSSION:
On December 22, 2010, the Director of Emergency Services/City Manager proclaimed the
existence of a local emergency resulting from the severe and damaging winter storms that
began on or about 12:00 a.m. (midnight) on December 17, 2010. Government Code
section 8630 requires the City Council to ratify any local emergency proclaimed by a local
official such as the Director of Emergency Services/City Manager within seven days.
Thereafter, the City Council shall at least once every 30 review the need for continuing the
local emergency.
ALTERNATIVES:
1) Consent to the continuance of the Proclamation of the Local State of Emergency
(Staff Recommendation).
2) Do Not Consent to the continuance.
FISCAL IMPACT:
The City’s ability to obtain or continue to receive federal, state or regional
disaster/emergency relief funding may be impacted if the City Council does not Consent
to continue the proclamation of the local state of emergency. Substantial budgetary
impacts are apparent for recovery efforts to include substantial employee overtime
salaries; purchases of materials, supplies and equipment; use of private
contractors/force labor; and other repairs to city right-of-way facilities (Preliminary
estimates range from thirty five to fifty thousand dollars). Budgetary assistance and
PACKET PAGE: 1
AGENDA ITEM 3A.1
reimbursement is available from Federal Emergency Management Agency (F.E.M.A.)
for related costs for limited recovery efforts to critical infrastructure including: electrical,
power, telecommunications, water supply, public safety, and transportation.
ATTACHMENTS:
· Copy of Resolution Number 3352
PACKET PAGE: 2
AGENDA ITEM 3A.1
STATE OF CALIFORNIA) RESOLUTION NO. 3352
COUNTY OF RIVERSIDE )ss
CITY OF SAN JACINTO
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JACINTO CONFIRMING THE CITY
MANAGER/DIRECTOR OF EMERGENCY SERVICES,
PROCLAMATION OF THE EXISTENCE OF A LOCAL
EMERGENCY
WHEREAS, section 2,36.060(A)(1) of the San Jacinto Municipal Code
empowers the Director of Emergency Services/City Manager to proclaim a local
emergency if the City Council is not in session and requires that the City Council shall
take action to ratify the proclamation within seven days thereafter; and
WHEREAS, on December 17, 2010, a series of winter storms began in Southern
California, bringing high winds and significant amounts of precipitation statewide, and
continued for several days; and
WHEREAS, these storms have caused injuries, flooding, and heavy rain
throughout Southern California; and
WHEREAS, these storms have caused power outages for several thousand
customers throughout Southern California; and
WHEREAS, homes and other property have been damaged by the severe
weather; and
WHEREAS, flooding has interfered with transportation throughout Southern
California; and
WHEREAS, conditions of extreme peril to the safety of persons and property
have arisen within the City of San Jacinto, as a result of severe and long lasting rains,
which began on or about 12:00 am. (midnight) on the 17th day of December, 2010, at
which time the City Council of the City of San Jacinto was not in session; and
WHEREAS, these conditions are or are likely to be beyond the control of the
services, personnel, equipment, and facilities of the City of San Jacinto; and
WHEREAS, on December 21, 2010, the County of Riverside declared a local
emergency: and
WHEREAS, the City does hereby find that the above described conditions of
extreme peril did warrant and necessitate the proclamation of the existing of a local
emergency within the City of San Jacinto; and
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AGENDA ITEM 3A.1
WHEREAS, the City Council of the City of San Jacinto was not in session on
December 22, 2010, and could not immediately be called into session; and
WHEREAS, the City Manager acting as the Director of Emergency Services did
proclaim the existence of a local emergency within the City of San Jacinto on the 22nd
of December 2010.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of San
Jacinto that the Proclamation of Existence of a Local Emergency, as issued by the
Director of Emergency Services/City Manager on December 22, 2010, is hereby ratified
and confirmed.
BE IT FURTHER RESOLVED that the local emergency shall be deemed to
continue to exist until its termination is proclaimed by the City Council of the City of San
Jacinto, and that until such time, the City Council shall review, at each of its regularly
scheduled meetings until the local emergency is terminated, the need for continuing the
local emergency.
BE IT FURTHER RESOLVED that City staff is hereby authorized and directed to
take any action that may be necessary or convenient to assist in obtaining federal, state
or regional disaster/ emergency relief funding.
BE IT FURTHER RESOLVED that the City Manager or his designee is hereby
designated as the authorized representative of the City of San Jacinto for the purpose of
receipt, processing and coordination of all inquiries and requirements necessary to
obtain county, state and federal relief assistance, and;
BE IT FURTHER RESOLVED that the City Clerk shall forward a copy of this
resolution to the Governor, to the State Office of Emergency Services, to the Riverside
County Emergency Services Division, and to all other appropriate county, state and
federal agencies with an interest therein; and
ADOPTED by the City Council of the City of San Jacinto at a special /
emergency meeting of said Council held on the 28th day of December 2010, by the
following vote:
Ayes: Bartel, Di Memmo, Ledezma, Miller
Nays: None
Absent: Kotyuk
Abstain: None
City of San Jacinto
\4'n6,)V7
Scott Miller, Mayor
2
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AGENDA ITEM 3A.1
ATTEST:
Rick Miller, City Clerk
APPROVED AS TO FORM:
BEST, BEST & KRIEGER LLP
3
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AGENDA ITEM 3A.1
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Rick Miller, City Clerk
Jeff Ballinger, City Attorney
SUBJECT: Waiver of Full Reading of Ordinance(s), and Reading by Title Only
RECOMMENDATION:
Staff recommends that the City Council, by motion, waive the full reading of any and all
ordinances on this meeting’s agenda, and authorize their reading by title only.
BACKGROUND:
Government Code Section 36934 requires that all ordinances shall be read in full either
at the time of their introduction or their passage. However, Government Code Section
36934 allows the waiver of this requirement by regular motion adopted by majority vote
if the title of the ordinance is read.
This waiver can be accomplished at the time of each ordinance action, or as a standing
waiver, accomplished as a consent calendar motion. In order to stream-line the process
for the passage of ordinances, the City Attorney and staff propose the second option,
which is the waiver of any and all ordinances on this agenda.
ALTERNATIVES:
Approval: Approve the addition of the attached language to all future agendas of the
City Council, thus waiving the full reading of all future ordinances.
Denial: Do not approve the agenda language and, instead, before the passage of any
ordinance and after the reading of its title, make a motion that must be adopted by
majority vote that allows a waiver of the full reading.
FISCAL IMPACT:
None
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AGENDA ITEM 3A.2
Page 1 of 2
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: David Clayton, Management Analyst
SUBJECT: Participation in the Riverside County Mortgage Credit Certificate
Program
RECOMMENDATION:
Adopt Resolution 3493 approving the City of San Jacinto’s participation in the
Riverside County Mortgage Credit Certificate Program.
DISCUSSION:
The Riverside County Board of Supervisors has authorized the Economic
Development Agency (EDA) to apply to the California Debit Limit Allocation
Committee for an allocation of Mortgage Credit Certificates (MCC). As in prior
fiscal years, the EDA has extended an invitation to the City of San Jacinto to
continue participation in the County’s MCC Program. As a participating city,
lenders are able to make mortgage loans available to MCC eligible low to
moderate income, first-time homebuyers purchasing a home in San Jacinto.
Adopting the attached Resolution is necessary for the City to participate in the
County MCC Program.
The MCC Program entitles qualified homebuyers (“borrower”) to reduce the
amount of their Federal income tax liability by an amount equal to fifteen percent
of the interest paid during the year on their home mortgage loan. Since the taxes
that are paid by the borrowers are reduced, their annual take-home pay is
effectively increased. The borrowers can still deduct the remaining portion of the
interest paid as a standard deduction. When underwriting a loan, the lender
takes the potential increase into consideration, which allows the borrower to
qualify for a larger mortgage loan.
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AGENDA ITEM 3A.3
Page 2 of 2
The following table illustrates how an MCC increases a borrower’s "effective
home buying power":
Effective Home Buying Power With and Without an MCC
Without MCC With MCC
First Mortgage Amount $300,000 $300,000
Mortgage Interest Rate 7% 7%
Monthly Mortgage
(Principal & Interest Only) $1,996 $1,996
MCC Rate N/A 15%
Monthly Credit Amount N/A $262.25
"Effective" Monthly
Mortgage Payment $1,996 $1,733.75
Annual Income Needed * $85,542 $74,304
* Annual Income Needed is based on monthly Principal and Interest
(P&I) not exceeding 28% of monthly income.
In the last three years the Riverside County Economic Development Agency has
issued a total of twelve Mortgage Credit Certificates to San Jacinto families.
Although only one Mortgage Credit Certificate was issued in fiscal year
2012/2013, it is expected that additional households will take advantage of this
program before the allocation period ends in December 2014. All types of
ownership are eligible for the MCC Program including foreclosures, new and
resale single family, manufactured, and condominium homes. Participation in the
MCC Program provides another tool for qualified homebuyers to purchase a
home in San Jacinto.
FISCAL IMPACT:
No impact to the City budget. Potential buyers qualify through the first mortgage
lender to receive the MCC from the County.
ALTERNATIVES:
1. Support the continued participation in the Riverside County Mortgage
Credit Certificate Program.
2. Do not participate in the Riverside County Mortgage Credit Certificate
Program
ATTACHMENTS:
● Resolution 3493
● Attachment K – Housing Element Certification Form
PACKET PAGE: 10
AGENDA ITEM 3A.3
STATE OF CALIFORNIA ) RESOLUTION NO. 3493
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY OF SAN JACINTO, CALIFORNIA
PARTICIPATING WITH THE COUNTY OF RIVERSIDE
MORTGAGE CREDIT CERTIFICATE (MCC) PROGRAM.
WHEREAS, THE Tax Reform Act of 1986 established the Mortgage Credit Certificate
Program (“MCC Program”) as a means of assisting qualified individuals with the
acquisition of new and existing single family housing; and
WHEREAS, pursuant to Division 31, Part 1, Chapter 3.5, Article 3.4 of the California
Health and Safety Code Sections 50197 et seq, local issuers are authorized to issue
Mortgage Credit Certificates (“Certificates”) and administer MCC Program; and
WHEREAS, the Board of Supervisors of the County of Riverside adopted Resolution No
87-564 on December 22, 1987 establishing a Mortgage Credit Certificate Program; and
WHEREAS, the Board of Supervisors of the County of Riverside has authorized the
Riverside County Economic Development Agency (“EDA”) to administer the MCC
Program; pursuant to the applicable federal, state and local policies and procedures,
and to enter into those agreements necessary for efficient administration of the MCC
program; and
WHEREAS, the County of Riverside (“County”) will be applying to the California Debit
Limit Allocation Committee (“CDLAC”) for a mortgage credit certificate allocation in July
16, 2014 or thereabouts; and
WHEREAS, the City of San Jacinto (‘City”) wishes to participate in the MCC Program
administered by the EDA in connection with mortgage loans it will make available for the
acquisition of new and existing single-family housing in Riverside County; and
WHEREAS, the adoption of this resolution is necessary to include the City of San
Jacinto as a participating unit of general government under County’s MCC program; and
WHEREAS, the City agrees to cooperate with the County of Riverside to undertake the
MCC program within the City jurisdiction to assist persons or households of limited
income to purchase new and existing single family residences located in the city; and
WHEREAS, the City by adopting this Resolution, hereby gives notice of its election to
participate in the Riverside County MCC program.
PACKET PAGE: 11
AGENDA ITEM 3A.3
NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of San Jacinto
as follows:
The City of San Jacinto agrees
1. to participate in the MCC Program administered by the EDA in connection with
mortgage loans it will make available for the acquisition of new and existing
single-family housing in Riverside County;
2. to assist the County of Riverside to market the MCC Program within the city’s
jurisdictional boundary by publishing a general public notice in the local
newspaper at least twice a year.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City of San Jacinto,
City Council on the 21th day of January, 2014 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
City of San Jacinto
_______________________
Alonso Ledezma, Mayor
ATTEST:
______________________________
Richard Miller, City Clerk
PACKET PAGE: 12
AGENDA ITEM 3A.3
ATTACHMENT K
HOUSING ELEMENT CERTIFICATION FORM
FOR APPLICATION FOR AN ALLOCATION OF QUALIFIED PRIVATE ACTIVITY
BONDS FOR A SINGLE FAMILY HOUSING MORTGAGE CREDIT CERTIFICATE
PROGRAM
Note: To be completed by each participating jurisdiction.
Certification of the City of San Jacinto (Participating Jurisdiction)
In connection with the following Qualified Private Activity Bond Application:
APPLICANT: County of Riverside Economic Development Agency for a Mortgage Credit
Certificate Program.
The undersigned officer of the City of San Jacinto (Participating Jurisdiction) hereby certifies as
follows:
1. I, Timothy Hults (name), am the City Manager (Title) of the City of San Jacinto (Participating
Jurisdiction); which is a participating jurisdiction of the proposed Single Family Housing
Mortgage Credit Certificate program.
2. The proposed Single Family Housing Program is consistent with the adopted housing element for
the City of San Jacinto (Participating Jurisdiction) in which the proposed program will operate,
pursuant to Section 5267 of the California Debt Limit Allocation Committee Regulations.
___________________________________ Timothy Hults
Signature of Senior Official Print or Type Name
City Manager
Title Date
PACKET PAGE: 13
AGENDA ITEM 3A.3
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Thomas Prill, Finance Director
SUBJECT: Warrants and Disbursements – December 2013
RECOMMENDATION:
Staff recommends that the City Council review and approve Warrants and Disbursements for
the period of December 1 through December 31, 2013 in the amount of $ 3,158,695.02.
DISCUSSION:
The City Council in its oversight role formally reviews disbursements of City funds made by
Accounts Payable warrants, bi-weekly payrolls and electronic funds (wire) transfers. The
following information is provided for such review and approval:
Warrants/Wire Pay Date Amount
Accounts Payable: # 107310-107567 Various $ 2,927,140.73
Payroll: Pay Period # 25 # 21712-21728 12/12/2013 $ 114,681.25
Includes Warrants, Direct Deposits, Taxes, Garnishments
Payroll: Pay Period # 26 # 21729-21746 12/26/2013 $ 114,873.04
Includes Warrants, Direct Deposits, Taxes, Garnishments
Electronic Funds Various $ 2,000.00
Total Disbursements – Period of December 1-31, 2013 $ 3,158,695.02
Prepared by: Judy Kelley, Account Clerk II
Known Councilmember Conflicts: Check #’s 107404, 107511.
FISCAL IMPACT:
Expenditures by warrant, payroll direct deposit and electronic funds (wire) transfers have been
appropriated in the adjusted FY 2013-14 budget.
ATTACHMENTS:
Accounts Payable Warrant Report – December 1-31, 2013
Electronic Funds Transfer Report – December 1-31, 2013
Note: Payroll information is on file in the Finance Department.
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January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Rick Miller, City Clerk
SUBJECT: Minutes of January 7, 2014 - Regular Meeting
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve the minutes of January 7,
2014, Regular Meeting
ATTACHMENTS
· Draft Minutes of January 7, 2014 – Regular Meeting
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AGENDA ITEM 3A.5
ACTION MINUTES
JOINT REGULAR MEETING
OF THE SAN JACINTO CITY COUNCIL AND THE SUCCESSOR AGENCY TO
THE CITY OF SAN JACINTO REDEVELOPMENT AGENCY
January 7, 2014
6:30 p.m.
625 S. Pico Ave
San Jacinto Community Center, San Jacinto, CA 92583
1. ORGANIZATION
1.1 Call to Order
Mayor Alonso Ledezma called the regular meeting of the San Jacinto City
Council and the successor agency to the City of San Jacinto
Redevelopment Agency to order at 6:32 p.m.
1.2 Roll Call
Present: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Absent: None
1.3 Invocation
Pastor Gene Leavell gave the invocation.
1.4 Pledge of Allegiance
Mayor Pro Tem Crystal Ruiz led the Pledge of Allegiance
1.5 Special Presentations
1.5.1 Recognition of Cathy Bechtel
As Cathy Bechtel was not available to attend the meeting the
presentation will be scheduled for a later date depending on her
availability.
1.6 Council Reports were heard at this time
Members of the council gave their reports.
2. PUBLIC COMMENTS:
Public Speakers:
PACKET PAGE: 55
AGENDA ITEM 3A.5
Action Minutes
January 7, 2014
____________________________________________________________________________________Page 2 of 6
· Jerry L. Nuno
· Jim Pangrazzi
· Linda Nunez
2.1 City Manager’s Report on previous month’s public comments
City Manager Tim Hults gave his report on the previous months comments.
3. CONSENT CALENDAR
3A CONSENT CALENDAR - CITY COUNCIL
3A.1 Continuance of the Proclamation of the Local State of
Emergency due to the Severe Winter Storms that
began on December 17, 2010 / Approve / City Clerk,
City Attorney
3A.2 Waiver of Full Reading of Ordinance(s), and Reading
by Title Only / Approve / City Clerk, City Attorney
3A.3 Minutes of December 17, 2013 - Regular Meeting /
Approve / City Clerk
3A.4 Treasurer's Report at November 30, 2013 / Approve /
City Treasurer
3A.5 Authorization for the Mayor, Councilmember and One
Member of Staff to attend the Annual US Conference
of Mayors in Washington DC January 22-24, 2014 /
Approve / Assistant City Manager
3B CONSENT CALENDAR - SUCCESSOR AGENCY TO
REDEVELOPMENT AGENCY OF CITY OF SAN JACINTO
Item 3.A.4
Council Member Kotyuk requested to have both investment firms come to a
Council Meeting for an update in the future.
Item 3.A.5
Public Speakers:
· Jim Pangrazzi
· Michael Fred Allen (donated his 3 minutes to Mr. Pangrazzi)
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AGENDA ITEM 3A.5
Action Minutes
January 7, 2014
____________________________________________________________________________________Page 3 of 6
M/S/C (Miller/Kotyuk) moved to approve the Consent Calendar. Motion carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
4. PUBLIC HEARING
4.1 Resolution Authorizing the Annex of Territory into Community
Facilities District No. 2003-1 and Declaring the Results of a Special
Annexation Landowner Election and Directing the Recording of an
Amended Notice of Special Tax Lien
City Manager Hults presented the staff report.
Mayor Ledezma Opened the Public Hearing at 7:12 pm
The vote from the property owner was a NO vote.
Mayor Ledezma Closed the Public Hearing at 7:13 pm
M/S/C (Kotyuk/Ruiz) to continue Item 4.1 to the next Regular City Council Meeting
of January 21, 2014. Motion carried 5/0
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Abstain: None
Absent: None
4.2 Second Reading and Adoption of Ordinance No. 13-07 approving
the 2013 California Building Standards Code and the 2013
California Fire Code
City Manager Hults presented the staff report.
Mayor Ledezma Opened Public Hearing at 7:16 pm
Public Speakers
· Jim Pangrazzi (Michael Fred Allen gave his 3 minutes)
Mayor Ledezma closed the Public Hearing at 7:22 pm
M/S/C (Miller/Ruiz) moved to approve the Item 4.2 as presented. Motion carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
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AGENDA ITEM 3A.5
Action Minutes
January 7, 2014
____________________________________________________________________________________Page 4 of 6
Absent: None
Abstain: None
5. STAFF REPORTS
5.1 2014 Special Events Schedule
Assistant City Manager Mike Emberton presented the staff report.
Public Speakers:
· Jim Pangrazzi
· Michael Fred Allen
· Linda Nunez
M/S/C Miller/Ruiz) moved to approve the Item 5.1 as presented. Motion carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
5.2 City Council Orientation Handbook Update
City Attorney Ballinger presented the staff report.
Public Speakers:
· Jim Pangrazzi
Council Member Ruiz requested that the population be upgraded to 44,600.
Council Member Miller requested that the last sentence in the 3rd paragraph
on page 137 be changed to reflect a change to read – Estudillo decided to
found a town in 1970 and was incorporated in 1888.
City Attorney Ballinger added language to the Orientation Handbook as
follows:
The Mayor or City Clerk shall publicly report any action taken and the vote
or abstention on that action of each member present for the action. Such
report may be made by roll call, identification of the members voting
yes/no/abstaining, reference to the electronic voting board, or any other
manner that allows verification of the vote of each Councilmember. This
information should also be noted in the minutes.
PACKET PAGE: 58
AGENDA ITEM 3A.5
Action Minutes
January 7, 2014
____________________________________________________________________________________Page 5 of 6
M/S/C (Kotyuk/Ruiz) moved to approve the Item 5.2 with modifications. Motion carried
5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
5.3 Set Public Hearing for Water Rate Surcharge for Soboba Tribe
Settlement Agreement
Assistant Manager Mike Emberton presented the staff report and
introduced Public Works Director Lynn Merrill who gave a brief
presentation.
M/S/C (Kotyuk/Ruiz) moved to approve a March 4, 2014 date for the Public Hearing
and for Alternative #1. Motion carried 5/0.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
6. MAYOR / COUNCIL MEMBER REPORTS / DISCUSSIONS
The Council Members gave their reports previously during 1.6
7. CLOSED SESSION
7A CLOSED SESSION - CITY COUNCIL
7B CLOSED SESSION - SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY OF THE CITY OF SAN JACINTO
8. ADJOURNMENT
With no further business before the City Council, Mayor Ledezma adjourned
the Regular Meeting of the City Council at 8:20 p.m. There was no Closed
Session
City of San Jacinto
______________________
Alonso Ledezma, Mayor
PACKET PAGE: 59
AGENDA ITEM 3A.5
Action Minutes
January 7, 2014
____________________________________________________________________________________Page 6 of 6
ATTEST:
___________________
Richard Miller, City Clerk
Approved as read: ________
Approved as amended: ____
PACKET PAGE: 60
AGENDA ITEM 3A.5
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Thomas Prill, Finance Director
SUBJECT: Independent Accountants’ Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets for the Year Ended June 30, 2013
RECOMMENDATION:
Staff recommends that the City Council, by motion, receive and file the Independent
Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations Limit
Worksheets for the year ended June 30, 2013.
BACKGROUND:
The City of San Jacinto performs an annual Appropriations Limit calculation, as required
by Article XIII-B of the California Constitution. This calculation is approved by the City
Council as a resolution annually, usually as a part of the budgeting process. The
accounting firm of Rogers, Anderson, Malody & Scott, LLP applied agreed-upon
procedures to the calculation for the year ended June 30, 2013.
DISCUSSION:
Acceptance of the report is formal public notification that an annual review of the
calculation was completed and the subsequent report was presented to the City
Council.
FISCAL IMPACT:
This action has no fiscal impact.
ATTACHMENTS:
Independent Accountants’ Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets
PACKET PAGE: 61
AGENDA ITEM 3A.6
PACKET PAGE: 63
AGENDA ITEM 3A.6
The City Council Page 2
City of San Jacinto, California
3. We agreed the current year information presented in the accompanying Appropriations
Limit worksheet to the other documents referenced in #1 above.
Finding: No exceptions were noted as a result of our procedures.
4. We agreed the prior year appropriations limit presented in the accompanying
Appropriations Limit worksheet to the prior year appropriations limit adopted by the City
Council during the prior year.
Finding: No exceptions were noted as a result of our procedures.
We were not engaged to, and did not, perform an examination, the objective of which would be
the expression of an opinion on the accompanying Appropriations Limit worksheet. Accordingly,
we do not express such an opinion. Had we performed additional procedures, other matters
might have come to our attention that would have been reported to you. No procedures have
been performed with respect to the determination of the appropriation limit for the base year, as
defined by the League publication entitled Article XIII-B of the California Constitution.
This report is intended solely for the information and use of the City Council and management of
the City of San Jacinto, California and is not intended to be and should not be used by anyone
other than these specified parties. However, this report is a matter of public record and its
distribution is not limited.
January 9, 2014
San Bernardino, CA
PACKET PAGE: 64
AGENDA ITEM 3A.6
CITY OF SAN JACINTO
APPROPRIATIONS LIMIT COMPUTATION
2012 – 2013
2012 - 2013
Per Capita Personal Income Change 3.77%
Population Change
County Population Growth 0.99%
CPI Change Converted to a Ratio 1.0377
Population Change Converted to a Ratio 1.0099
Calculation of Growth Factor 1.0480
2011 – 2012 Limit $ 36,240,968
2012 – 2013 Appropriations Limit
(36,240,968 X 1.0480) $ 37,980,534
PACKET PAGE: 65
AGENDA ITEM 3A.6
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Steve Mike, Police Chief
SUBJECT: Approval of Supplemental Law Enforcement Service Account (SLESA)
Grant Spending Plan (FY 2013-2014)
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve the proposed spending
plan for the Supplemental Law Enforcement Services Fund (SLESF) for Fiscal Years
2013-2014.
BACKGROUND:
The Supplemental Law Enforcement Services Grant funding is received from the State
of California’s Citizen’s Option for Public Safety Programs via the County of Riverside.
The program began in 1997 and continues to be funded. The use of SLESA funds are
only for front-line law enforcement services. The countywide spending plan is approved
by the Supplemental Law Enforcement Oversight Committee that is chaired by the
Sheriff of Riverside County. Once the plan has been approved and submitted, the
funding should occur in March 2014.
DETAILS:
The San Jacinto Police Department proposes that the 2013-2014 Supplemental Law
Enforcement Services funding be spent on the following categories:
EQUIPMENT:
A. Mobile Command Post Trailer– Members of the San Jacinto Police Department are
often called to the field on extensive investigation’s requiring a lengthy amount of time
being spent at the scene of the incident. Often, these investigations require on-site
support from Mobile Data computers, local, state, and federal database inquires, and
electronic communication associated with these from the scene. In addition, on critical
incidents, officers require a base station to maintain a centralized command from the
field. Examples of usage are as follows: Crime scene command (homicide, fatal
collision, abduction,) DUI checkpoints: San Jacinto Police Department has received
three grants through the Office of Traffic Safety for this fiscal year ( OTS Checkpoint,
STEP, and AVOID the 30) totaling in excess of 140,000.00 in grant funds and
generating approximately 10 stationary checkpoints within the city. Officers at these
checkpoints need facilities to evaluate suspected intoxicated offenders, and house
checkpoint supplies and equipment. Finally, another use of the mobile command post
PACKET PAGE: 67
AGENDA ITEM 3A.7
is community outreach. Oftentimes the San Jacinto Police Department participates in
community events to increase the bond between the Department and citizens, as well
as for citizen volunteers and explorers.
Estimated Cost: $40,000.00
B. Mobile Command Post Truck – In order to facilitate the transportation of the Mobile
Command Post, a heavy duty pick-up truck is required. Studies show that traditional
class-A type command posts have a higher maintenance cost than a truck and trailer
combination. In addition, the truck and trailer combination is more versatile for overall
law enforcement needs. For instance, the truck will be outfitted with open top lids to
assist in transportation of equipment for various response needs. The mobile command
post truck can be utilized separately as a traffic collision reconstruction vehicle for
incidents which require extensive investigation and traffic collision scene reconstruction.
The mobile command post truck could also be utilized to move the Police Department’s
radar trailer, and equipment trailer. Finally, the mobile command truck could be utilized
as a covert surveillance vehicle if the circumstances required.
Estimated Cost: $40,000.00
C. Audio-Video equipment – The San Jacinto Police Department’s video monitoring
system is extremely outdated and requires extensive repair and upgrades. The video
recordings of incident interviews are very important to the San Jacinto Police
Department. Successful audio and video retention is paramount in prosecution of
criminals.
Estimated Cost: $20,000.00
Total Proposed Expenditures: $100,000.00
The amounts that are presented above are estimates based on current information
received. Expenditures will be adjusted if prices change, in order to keep expenses
within the allotted fund amount.
ALTERNATIVES:
1. By motion, approve and authorize the spending plan as presented.
2. Provide staff with further direction.
FISCAL IMPACT:
This stand-alone expenditure plan of $100,000.00 is strictly from grant funds, the
revenue and expenditure of which have already been budgeted.
ATTACHMENTS:
None.
PACKET PAGE: 68
AGENDA ITEM 3A.7
January 7, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Tim Hults, City Manager
Jeff Ballinger, City Attorney
SUBJECT: Resolution Authorizing the Annex of Territory into Community Facilities
District No. 2003-1 and Declaring the Results of a Special Annexation
Landowner Election and Directing the Recording of an Amended Notice of
Special Tax Lien
RECOMMENDATION:
This item has been agendized because it was continued to this meeting by the
City Council at the January 7, 2014 meeting. City staff, the consultant and the
City Attorney are evaluating options that may be available to the City Council.
City staff will bring back an item when that evaluation is complete.
Staff recommends that the City Council adopt the Resolution Authorizing the Annex of
Territory into Community Facilities District No. 2003-1 and Declaring the Results of a
Special Annexation Landowner Election and Directing the Recording of an Amended
Notice of Special Tax Lien.
DISCUSSION:
The City Council and Planning Commission have identified the need for additional
funding sources for police protection and fire protection and suppression services,
especially those services that are created by new development within the City. In
response to the need for additional funding for such services, the City Council formed
Community Facilities District 2003-1 (the "CFD”) and the levy of special taxes therein.
The City has been utilizing the CFD as a tool to assess new residential development for
the direct costs associated with providing police protection and fire protection and
suppression services. The use of the CFD provides additional funds to mitigate the
added cost of providing public safety services for new residential development. The
adoption of the Resolution Authorizing the Annexation of Territory to CFD 2003-1 and
authoring the Levy of a Special Tax and submitting the levy of Special Tax to qualified
electors is required to annex the territory into the CFD. The Resolution of Intention
approves the CFD annexation boundaries, and set the Public Hearing date for January
PACKET PAGE: 69
AGENDA ITEM 4.1
7, 2014 during a regularly scheduled City Council meeting. A ballot was mailed to the
property owner within the annexation territory, to vote for or against the annexation.
FISCAL IMPACT:
The annexation of the territory into the CFD will have a beneficial impact to the City's
budget in that, upon implementation of the proposed annexation, would assist in the
funding of police protection and fire protection and suppression services.
ATTACHMENTS:
1. Resolution of Certifying Election Results No._____
2. Resolution of Annexation and Calling for a Special Election
PACKET PAGE: 70
AGENDA ITEM 4.1
Page 1 of 3
STATE OF CALIFORNIA ) RESOLUTION NO.
COUNTY OF RIVERSIDE )ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JACINTO, DECLARING THE RESULTS OF A SPECIAL
ANNEXATION LANDOWNER ELECTION AND DIRECTING
THE RECORDING OF AN AMENDED NOTICE OF SPECIAL
TAX LIEN
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 54
RESOLVED by the City Council (the “Council”) of the City of San Jacinto (the “City”), County of
Riverside, State of California, that:
WHEREAS, the City Council of the City has previously formed a Community Facilities District
pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and
following, California Government Code; hereafter referred to as the “Act”). The existing Community
Facilities District being designated as Community Facilities District No. 2003-1 (the “CFD”); and
WHEREAS, in proceedings heretofore conducted by the Council pursuant to the Act, the Council
has heretofore adopted a resolution calling a special election of the qualified landowner electors in the
territory of the land proposed to be annexed to the CFD.
WHEREAS, pursuant to the terms of the resolution of the Council entitled “A Resolution of the City
Council of San Jacinto, Authorizing the Annexation of Territory to Community Facilities District No. 2003-1
and Authorizing the Levy of a Special Tax and Submitting the Levy of Special Tax to Qualified Electors”
(the “Resolution of Annexation and Election”), adopted by the Council on this date, which is hereby
incorporated herein by this reference, the special election has been held and the City Clerk has on file a
Canvass and Statement Result of Election (the “Canvass”), a copy of which is attached hereto as Exhibit
A; and
WHEREAS, this Council has reviewed the Canvass and hereby approves said Canvass.
NOW, THEREFORE, it is hereby RESOLVED, DETERMINED AND ORDERED by the City
Council of the City of San Jacinto as follows:
SECTION 1. Recitals. The foregoing recitals are true and correct.
PACKET PAGE: 71
AGENDA ITEM 4.1
Page 2 of 3
SECTION 2. Issues Presented. The issues presented at the special election were (i) the
annexation of territory to the CFD; and (ii) the levy of a special tax within the
territory annexed to the CFD.
SECTION 3. Measure Approved. Pursuant to the Canvass, the issues presented at the special
election were approved by the landowners of the territory proposed for the
annexation to the CFD by more than two-thirds of the votes received at the special
election.
SECTION 4. Declaration of Annexation. The Council does hereby determine and declare that
the annexed territory is now added to and becomes a part of the CFD. The
Council, acting as the City Council of the CFD, is hereby empowered to levy the
authorized special tax within the annexation territory.
SECTION 5. Authority to Levy. Pursuant to the voter approval, this Council may levy special
taxes in the territory in the captioned annexation according to the rate and method
of apportionment specified in the resolution of this Council entitled “A Resolution
of the City Council of San Jacinto Declaring its Intention to Annex Territory into
Community Facilities District No. 2003-1 and to Authorize the Levy of Special
Taxes Therein” adopted on November 19, 2013.
SECTION 6. Prior Proceedings. It is hereby found that all prior proceedings and actions taken
by this Council with respect to the CFD and the territory annexed thereto were
valid and in conformity with the Act.
SECTION 7. Amendment to Notice of Lien. The City Clerk is hereby directed to complete,
execute and cause to be recorded in the office of the County Recorder of the
County of Riverside an amendment to the Notice of Special Tax Lien in the form
required by the Act, such recording to occur no later than fifteen (15) days
following adoption of this Resolution by the Council.
SECTION 8. This Resolution shall take effect upon its adoption.
PACKET PAGE: 72
AGENDA ITEM 4.1
Page 3 of 3
ADOPTED, SIGNED AND APPROVED this this 7th day of January, 2014, by the following vote:
Ayes:
Nays:
Absent:
Abstained:
City of San Jacinto
By,
Alonso Ledezma, Mayor
ATTEST:
Rick Miller, City Clerk
APPROVED AS TO FORM:
City Attorney, City of San Jacinto
Best, Best & Krieger, LLP
PACKET PAGE: 73
AGENDA ITEM 4.1
A-1
EXHIBIT A
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 54
CANVASS AND STATEMENT OF RESULT OF ELECTION
I hereby certify that on January 7, 2014, I canvassed the returns of the election held on January
7, 2014, for the City of San Jacinto Community Facilities District No. 2003-1 Annexation No. 54
and the total number of ballots cast in such election and the total number of votes cast for and
against the measure are as follows and the totals as shown for and against the measure are full,
true and correct:
Qualified
Landowner
Votes
Votes
Cast
Votes
YES
Votes
NO
City of San Jacinto Community Facilities
District No. 2003-1 Annexation No. 54
Special Tax Election, January 7, 2014 __4__ _____ _____ _____
BALLOT MEASURE: Shall the City of San Jacinto, by and for its
Community Facilities District No. 2003-1 (the “CFD”), be authorized to
annually levy a special tax within the territory identified as Annexation
No. 54 to the CFD in accordance with the rate and method of
apportionment described in Resolution No. 3484 adopted by the Council
of the City of San Jacinto on November 19, 2013?
Yes: __________
No: __________
IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND on January 7, 2014.
By:
Rick Miller, City Clerk
City of San Jacinto
PACKET PAGE: 74
AGENDA ITEM 4.1
Page 1 of 4
STATE OF CALIFORNIA ) RESOLUTION NO.
COUNTY OF RIVERSIDE )ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF SAN JACINTO,
AUTHORIZING THE ANNEXATION OF TERRITORY TO
COMMUNITY FACILITIES DISTRICT NO. 2003-1 AND
AUTHORIZING THE LEVY OF A SPECIAL TAX AND
SUBMITTING THE LEVY OF SPECIAL TAX TO QUALIFIED
ELECTORS
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 54
RESOLVED by the City Council (the “Council”) of the City of San Jacinto (the “City”), County of
Riverside, State of California, that:
WHEREAS, on November 19, 2013 the Council adopted Resolution No. 3484 entitled “A
Resolution of the City Council of San Jacinto Declaring its Intention to Annex Territory into Community
Facilities District No. 2003-1 and to Authorize the Levy of Special Taxes Therein” (“Resolution of Intention
to Annex”), stating its intention to annex certain territory into Community Facilities District No. 2003-1 (the
“CFD”) pursuant to the Mello Roos Community Facilities Act of 1982, Section 53311, and following of the
California Government Code (the “Act”); and
WHEREAS, a copy of the Resolution of Intention to Annex, incorporating a description and map of
the proposed boundaries of the annexation territory (“Annexation No. 54”), stating the services to be
provided, and the rate and method of special tax to be levied within the annexation territory to pay for the
services, is on file with the City Clerk, and the provisions thereof are fully incorporated herein by reference;
and
WHEREAS, on the date hereof, the Council held a noticed public hearing as required by the Act
and the Resolution of Intention to Annex relative to the proposed annexation territory to the CFD and the
levy of special taxes in the annexation territory; and
WHEREAS, at such hearing all interested persons desiring to be heard an all matters pertaining to
the annexation territory to the CFD and the levy of special taxes within the annexation territory were heard
and full and fair hearing was held; and
WHEREAS, prior to the time fixed for the hearing, written protests have not been filed against the
proposed annexation of territory to the CFD by (i) 50% or more of the registered voters, or six registered
PACKET PAGE: 75
AGENDA ITEM 4.1
Page 2 of 4
voters, whichever is more, residing in the existing CFD; or (ii) 50% or more of the registered voters, or six
registered voters, whichever is more, residing in the territory proposed to be annexed; or (iii) owners of
one-half or more of the area of land in the existing CFD; or (iv) owners of one-half or more of the area of
land in the territory proposed to be annexed.
WHEREAS, the annexation map of Annexation No. 54 has been filed with the County Recorder of
Riverside County, which map shows the territory to be annexed in these proceedings, and a copy of the
map is on file with the City Clerk.
NOW, THEREFORE, it is hereby RESOLVED, DETERMINED AND ORDERED by the City
Council of the City of San Jacinto as follows:
SECTION 1. Recitals. The foregoing recitals are true and correct.
SECTION 2. Prior Proceedings. All prior proceedings taken by this Council with respect to the
CFD and the proposed annexation territory have been duly considered and are
hereby determined to be valid an in conformity with the Act, and the CFD has
been validly established pursuant to the Act.
SECTION 3. Prior Resolutions. The provision of the Resolution of Intention previously adopted
by the Council for the CFD are by referenced incorporated herein.
SECTION 4. Boundaries. The boundaries of the territory to be annexed to the CFD, as
described in Annexation Map No. 54, is on file with the City Clerk and heretofore
recorded in the Riverside County Recorder’s Office on November 21, 2013, in
Book 76 at Page 55 of Maps of Assessment and Community Facilities Districts,
Instrument No. 2013-0549962, is hereby approved, and incorporated herein by
this reference, and shall be included within the boundaries of the CFD, and said
territory is hereby ordered annexed to the CFD, subject to voter approval of the
levy of special taxes therein as provided.
SECTION 5. Voter Approval. Pursuant to the provision of the Act, the propositions of (i) the
annexation of the annexation territory, and (ii) the levy of special taxes within the
annexation territory shall be submitted to the voters of the annexation territory at
an election called therefore as hereinafter provided.
SECTION 6. Electors Determined. The Council hereby finds that fewer than 12 persons have
been registered to vote within the territory proposed to be annexed for each of the
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AGENDA ITEM 4.1
Page 3 of 4
90 days preceding the close of the hearing heretofore conducted and concluded
by the Council for the purpose of these annexation proceedings. Accordingly, and
pursuant to Section 53326 of the Act, the Council finds that for purposes of these
proceedings the qualified electors are the landowners within the annexation
territory and that the vote shall be by said landowners, each having one vote for
each acre or portion thereof such landowner owns in the annexation territory.
SECTION 7. Applicable Laws. Pursuant to the Act, the election shall be conducted by mail
ballot under section 4000 of the California Elections Code, provided, however, that
for the purposes of setting the date for the election, Sections 53326 and 53327 of
the Act shall govern.
SECTION 8. Special Election Called. This Council hereby calls a special election to consider
the measure described in the ballot referred to in Exhibit A hereto, which form is
hereby approved. The special election shall be held in the meeting room of the
Council immediately following adoption of this Resolution. The Council hereby
further finds that the provision of the Act requiring a minimum of 90 days to elapse
before said election is for the protection of the voters, and the voters have waived
such requirement and the date for the election herein is established accordingly.
SECTION 9. Election Official. The City Clerk is hereby designated as the official to conduct
said election. It is hereby acknowledged that the City Clerk has on file the
Resolution of Intention, a certified map of the proposed boundaries of the territory
to be annexed to the CFD, and a sufficient description to allow the City Clerk to
determine the boundaries of the territory to be annexed to the CFD. The voted
ballot shall be returned to the City Clerk no later then immediately following the
adoption of this Resolution, and when the qualified elector has voted the election
shall be closed. This Council acknowledges that the City Clerk has caused to be
delivered to the sole qualified elector of the CFD a ballot in the form set forth in
Exhibit A hereto. The ballot indicated the numbers of votes to be voted by the
landowner, and was accompanied by all supplies and written instructions for the
use and return of the ballot.
SECTION 10. Effective. This resolution shall take effect upon its adoption.
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AGENDA ITEM 4.1
Page 4 of 4
ADOPTED, SIGNED AND APPROVED this this 7th day of January, 2014, by the following vote:
Ayes:
Nays:
Absent:
Abstained:
City of San Jacinto
By,
Alonso Ledezma, Mayor
ATTEST:
Rick Miller, City Clerk
APPROVED AS TO FORM:
City Attorney, City of San Jacinto
Best, Best & Krieger, LLP
PACKET PAGE: 78
AGENDA ITEM 4.1
A-1
EXHIBIT A
City of San Jacinto
Community Facilities District No. 2003-1
Annexation No. 54
OFFICIAL BALLOT
SPECIAL TAX ELECTION
This ballot is for a special, landowner election. You must return this ballot in the enclosed
postage paid envelope to the office of the City Clerk of the City of San Jacinto no later than 6:30
p.m. on Tuesday, January 7, 2014, either by mail or in person. The Clerk’s office is located at
595 S. San Jacinto Avenue, Building B, San Jacinto, California, 92583.
To vote, mark a cross (X) on the voting line after the word “YES” or after the word “NO”. All
marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot
void.
If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of San
Jacinto and obtain another.
BALLOT MEASURE: Shall the City of San Jacinto, by and for its
Community Facilities District No. 2003-1 (the “CFD”), be authorized to
annually levy a special tax within the territory identified as Annexation No.
54 to the CFD in accordance with the rate and method of apportionment
described in Resolution No. 3484 adopted by the Council of the City of
San Jacinto on November 19, 2013?
Yes: __________
No: __________
By execution in the space provided below, you also confirm your written waiver of the time limit
pertaining to the conduct of the election and any requirement for analysis and arguments with
respect to the ballot measure as such waivers are described and permitted by Section 53326(a)
and 53327(b) of the California Government Code.
Number of Votes: 4
Assessor’s Parcel Number: 432-270-010
Property Owner: Monique McKay
By:
PACKET PAGE: 79
AGENDA ITEM 4.1
January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Thomas Prill, Finance Director
SUBJECT: Annual Financial Report, SAS 114 Report and GAS Report for the Fiscal
Year Ended June 30, 2013
RECOMMENDATION:
Staff recommends that the City Council receive and file the Annual Financial Report of
the City of San Jacinto for the fiscal year ended June 30, 2013, as well as the “SAS
114” Report and the “GAS” Report.
BACKGROUND:
An audit of financial transactions and internal controls is both legally required and
mandated under bond covenants. Audit activities were conducted by the firm Rogers,
Anderson, Malody & Scott, LLP (RAMS) at various times in July and November 2013.
Finance staff performed an extensive review and analysis of the report in December
2013 and completed the Management Discussion and Analysis section (MD&A).
A Single Audit Report for the period ending June 30, 2013 was not required since
federally funded expenditures did not total more than $500,000.
DISCUSSION:
RAMS has rendered an unqualified opinion that the general purpose financial
statements, present fairly, in all material respects, the financial position of the City of
San Jacinto at June 30, 2013, and the changes in financial position for the year then
ended in conformity with accounting principles generally accepted in the United States
of America.
RAMS is also required by professional standards to provide certain information
regarding the audit process and their responsibilities under generally accepted auditing
standards and Government Auditing Standards. The attached “SAS 114” report
communicates this information.
RAMS is also required by professional standards to provide a report on internal control
over financial reporting and on compliance and other matters based on an audit of
financial statements performed in accordance with Government Auditing Standards.
Accordingly, the “GAS” report is also presented.
PACKET PAGE: 81
AGENDA ITEM 5.1
Once received and filed, a copy of the Annual Financial Report will be available for
download on the City’s website.
FISCAL IMPACT:
This action has no fiscal impact.
ATTACHMENTS:
City of San Jacinto Annual Financial Report for the Year Ended June 30, 2013
SAS 114 Report for the Year Ended June 30, 2013
GAS Report for the Year Ended June 30, 2013
PACKET PAGE: 82
AGENDA ITEM 5.1
CITY OF SAN JACINTO, CALIFORNIA
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2013
PACKET PAGE: 83
AGENDA ITEM 5.1
City of San Jacinto
Annual Financial Report
For the Year Ended June 30, 2013
Table of Contents
PAGE
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position 14
Statement of Activities 15
Fund Financial Statements
Governmental Funds
Balance Sheet 17
Reconciliation of the Balance Sheet of Governmental Funds to the
Statement of Net Position 19
Statement of Revenues, Expenditures and Changes in Fund Balances 20
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities 22
Proprietary Funds
Statement of Net Position 23
Statement of Revenues, Expenses and Changes in Net Position 25
Statement of Cash Flows 27
Fiduciary Funds
Statement of Fiduciary Net Position 31
Statement of Changes in Fiduciary Net Position 32
Notes to the Basic Financial Statements 33
Required Supplementary Information
Budgetary Comparison Schedule
General Fund 66
Community Facilities District 2003 Fund
LLPD #2 Fund
67
68
Non-Major Governmental Funds
Combining Balance Sheet
Special Revenue Funds 69
Capital Projects and Debt Service Funds 74
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances
Special Revenue Funds 76
Capital Projects and Debt Service Funds 81
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AGENDA ITEM 5.1
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AGENDA ITEM 5.1
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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the City, as of June 30, 2013, and the respective changes in financial position,
and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis and budgetary comparison information, as listed in the accompanying table of contents,
be presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The combining and individual nonmajor fund financial
statements, are presented for purposes of additional analysis and are not a required part of the basic financial
statements.
The combining and individual nonmajor fund financial statements are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in the audit of the
basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements or to the 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 combining and
individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic
financial statements as a whole.
Implementation of New Pronouncement
As discussed in Note 1 of the financial statements, the City adopted the provisions of GASB Statement No. 63,
Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position.
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AGENDA ITEM 5.1
-3-
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 9, 2014 on
our consideration of the City’s internal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance.
That report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City’s internal control over financial reporting and compliance.
San Bernardino, CA
January 9, 2014
PACKET PAGE: 87
AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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This is management’s discussion and analysis of the financial performance of the City of San Jacinto
for the fiscal year ended June 30, 2013. Please read this in conjunction with the City’s financial
statements, which follow this discussion.
FINANCIAL HIGHLIGHTS
On the government-wide basis, the City’s total net position decreased over the course of the
fiscal year by $5,335,101 to $161,122,859. The net position of governmental activities
decreased by $4,851,492, or 3 percent, and the net position of business-type activities
decreased by $483,609, or 4 percent.
The general fund, on the fund financial statements basis, reported a deficiency of revenue under
expenditures and other financing sources and uses of $1,682,408. The deficiency was a result
of the continuing economic downturn.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report consists of four parts – management’s discussion and analysis (this portion), the
basic financial statements, required supplementary information, and optional combining statements for
non-major governmental funds. The basic financial statements include two kinds of statements that
present different views of the City.
The government-wide financial statements provide both long-term and short-term information
about the City’s overall financial status, in a manner similar to private sector business.
Fund financial statements focus on individual parts of the City, reporting the City’s operations in
more detail than the government-wide financial statements.
Governmental fund statements tell how general government services, such as community
development, were financed in the short-term as well as what remains for future spending.
Proprietary fund statements offer short-term and long-term financial information about the
activities the City operates like businesses, such as utility services.
Fiduciary fund statements provide information about financial relationships in which the City
acts solely as a trustee or agent for the benefit of others, to whom the resources belong.
FinancialFinancial
Analysis
Basic
Statements
Management'sDiscussionand
Components of the Financial Section
Statements
FinancialStatements Statements
DetailSummary
RequiredSupplementaryInformation
Notesto theGovernment-wide Fund
Financial
PACKET PAGE: 88
AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
-5-
The financial statements also include notes that explain some of the information in the financial
statements and provide more detailed data. The statements are followed by a comparison of actual
results with the original and final amended budget for the general fund and each major special revenue
fund with an annually adopted budget. In addition to these required elements, we have included
combining statements that provide details about our non-major governmental funds, which are
presented in total in a column in the basic financial statements.
Government-wide Financial Statements
The government-wide statements report information about the City as a whole using accounting
methods similar to those used by private-sector companies. The statement of net position includes all
of the City’s assets and liabilities. All current year revenues and expenses are reported in the
statement of activities regardless of when cash is received or paid.
The two government-wide statements report the City’s net position and how they have changed during
the fiscal year. Over time, increases or decreases in net position may serve as a useful indicator of
whether the financial health of the City is improving or deteriorating.
The government-wide financial statements of the City are divided as follows:
Governmental activities – All of the City’s basic services are included here, such as police, fire,
engineering, streets, parks and recreation, history preservation, community development,
redevelopment and general government. Taxes and state and federal grants finance most of
these activities.
Business-type activities – The City’s utility services provided are funded by customer fees.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. Fund financial statements provide more detailed
information about the City’s largest funds, not the City as a whole.
The City has three types of funds:
Governmental funds – All of the City’s basic services are included in governmental funds, which
focus on (1) short-term inflows and outflows of spendable resources, and (2) the remaining
year-end balances available for spending. Because this information does not encompass the
additional long-term focus of the government-wide statements, reconciliations that explain the
relationship (or differences) between governmental funds and governmental activities follow
each of the governmental funds statements.
Proprietary funds – Services for which customer fees are intended to finance the costs of
operations are generally reported in proprietary funds. Proprietary funds financial statements,
like the government-wide statements, provide both long-term and short-term financial
information.
Enterprise funds are used to report the same functions presented as business-type activities
in the government-wide financial statements.
Internal service funds report activities that provide services for the City’s other programs and
activities, such as the City’s self-insurance arrangements.
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AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
-6-
Fiduciary funds – The City is the trustee for certain assessment and community facilities district
funds. It is also responsible for other trust account assets, which because of trust agreements,
can be used only for the trust beneficiaries. The City is responsible for ensuring that the assets
reported in these funds are used for their intended purposes. All of the City’s fiduciary activities
are reported in a separate statement of fiduciary net position. We exclude these activities from
the City’s government-wide financial statements because the City cannot use these assets to
finance its operations.
FINANCIAL ANALYSIS OF THE GOVERNMENT-WIDE STATEMENTS
The government-wide financial statements provide long-term and short-term information about the
City’s overall financial condition. This analysis addresses the financial statements of the City as a
whole.
City of San Jacinto
Government-wide Financial Statements - Summary of Net Position
As of June 30, 2013 and 2012
(in thousands)
2013 2012 2013 2012 2013 2012
Cash and investments 40,679$ 44,664$ 2,197$ 1,955$ 42,876$ 46,619$ (8.0)%
Current and other assets 9,917 8,997 1,394 1,640 11,311 10,637 6.3%
Capital assets, net 109,349 111,328 11,338 11,644 120,687 122,972 (1.9)%
Total assets 159,945 164,989 14,929 15,239 174,874 180,228 (3.0)%
Long-term liabilities 2,556 2,711 2,580 2,930 5,136 5,641 (9.0)%
Other liabilities 7,157 7,195 1,458 934 8,615 8,129 6.0%
Total liabilities 9,713 9,906 4,038 3,864 13,751 13,770 (0.1)%
Net position:
Net investment in capital assets 109,349 111,328 8,408 8,380 117,757 119,708 (1.6)%
Restricted 23,791 18,513 - - 23,791 18,513 28.5%
Unrestricted 17,092 25,242 2,483 2,995 19,575 28,237 (30.7)%
Total net position 150,232$ 155,083$ 10,891$ 11,375$ 161,123$ 166,458$ (3.2)%
Governmental Activities Business-type
Activities
Total Primary
Government Total
Percent
Change
Net position represents the difference between the City’s resources and its obligations. At June 30,
2013, the largest portion of the City’s total net position, approximately 73 percent, reflects the
investment in capital assets less related debt outstanding used to acquire the capital assets. These
capital assets are used by the City to provide services to the citizens. Additional capital asset
information can be found in the Capital Asset and Debt Administration section of the MD&A. Restricted
net position represents amounts that must be used in accordance with external restrictions. The
unrestricted balance of net position may be used at the City’s discretion.
The net position of our business-type activities decreased by 4 percent to $10,891,332, and the City
generally can only use this net position to finance the continuing operations of the business-type
activities.
PACKET PAGE: 90
AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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City of San Jacinto
Government-wide Financial Statements - Changes in Net Position
For the fiscal year ended June 30, 2013 and 2012
(in thousands)
Total
Percent
2013 2012 2013 2012 2013 2012 Change
Revenues
Program revenues:
Charges for services 3,613$ 3,122$ 6,456$ 6,887$ 10,069$ 10,009$ 0.6%
Operating grants and
contributions 6,141 6,379 - - 6,141 6,379 (3.7)%
Capital grants and contributions 4,081 5,425 - - 4,081 5,425 (24.8)%
General revenues:
Property taxes 2,262 1,681 - - 2,262 1,681 34.6%
Redevelopment tax increment - 2,293 - - - 2,293 (100.0)%
Transient occupancy taxes 20 18 20 18 11.1%
Franchise taxes 1,983 1,483 - - 1,983 1,483 33.7%
Sales taxes 2,289 2,197 - - 2,289 2,197 4.2%
Motor vehicle in lieu taxes 2,445 2,505 - - 2,445 2,505 (2.4)%
Other taxes 198 156 - - 198 156 26.9%
Other 157 190 (191) 27 (34) 217 (115.7)%
Gain on dissolution of
Redevelopment Agency - 2,846 - - - 2,846 100.0%
Total revenues 23,189 28,295 6,265 6,914 29,454 32,363 (9.0)%
Expenses
Governmental activities:
General government 3,350 2,325 - - 3,350 2,325 44.1%
Public safety 11,745 10,582 - - 11,745 10,582 11.0%
Public works 5,436 5,895 - - 5,436 5,895 (7.8)%
Community development 6,568 5,534 - - 6,568 5,534 18.7%
Culture and leisure 925 854 - - 925 854 8.3%
Interest on long-term debt 16 51 - - 16 51 (68.6)%
Business-type activities:
Water - - 3,711 3,955 3,711 3,955 (6.2)%
Solid waste - - 2,354 2,723 2,354 2,723 (13.6)%
Sewer - - 684 708 684 708 (3.4)%
Total expenses 28,040 25,241 6,749 7,386 34,789 32,627 6.6%
Increase (decrease) in net position (4,851)$ 3,054$ (484)$ (472)$ (5,335)$ (264)$ 1,920.8%
Governmental Business-type Total Primary
Activities Activities Government
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AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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Revenue
The City’s total revenue was $29,453,275 for the year ended June 30, 2013. Revenue from
governmental activities totaled $23,188,272 and revenue from business-type activities totaled
$6,265,003. During 2013, capital contributions and grants, restricted to the construction of capital
assets, comprised 14 percent of the total revenue of the City, taxes and other general revenues
provided 31 percent of the total revenue of the City, and charges for services and operating
contributions and grants provided 55 percent of the total revenue of the City.
Most of the revenues remained stable from 2012 to 2013, except for the elimination of redevelopment
tax increment as well as the gain recognized in the previous year with the dissolution of the
Redevelopment Agency.
Expenses
The City’s expenses totaled $34,788,376 for the year. Governmental activity expenses totaled
$28,039,764, or 81 percent of total expenses. Business-type activities incurred $6,748,612 of
expenses during the year, or 19 percent of total expenses.
The majority of the increase in general government, public safety and community development relates
to operational increases.
Governmental Activities
The following table shows the cost of each of the City’s major programs and the net cost of the
programs. Net cost is the total cost less fees and other direct revenue generated by the activities, and
reflects the financial burden that was placed on the City’s taxpayers by each of the programs.
City of San Jacinto
Government-wide Financial Statements - Net Cost of Governmental Activities
For the fiscal year ended June 30, 2013 and 2012
(in thousands)
Percent Percent
2013 2012 Change 2013 2012 Change
General government 3,350$ 2,325$ 44.1% 392$ 174$ 125.3%
Public safety 11,745 10,582 11.0% 8,484 7,417 14.4%
Public works 5,436 5,895 (7.8%) 2,515 1,464 71.8%
Community development 6,568 5,534 18.7% 1,873 356 426.1%
Culture and leisure 925 854 8.3% 925 854 8.3%
Total $28,024 $25,190 11.3% $14,189 $10,265 38.2%
Total Cost
of Services
Net Cost
of Services
The cost for all governmental activities this year was $28,023,651. The City’s taxpayers paid for
approximately 33 percent of these costs. Fees, grants and contributions funded the balance of the
costs of governmental activities.
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AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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Business-type Activities
Charges for services of the City’s business-type activities totaled $6,455,505. Expenses of business-
type activities were $6,748,612. Capital grants and contributions were not received in the water, solid
waste and sewer activities to finance capital improvements. The costs of capital improvements are
reported as capital assets in the statement of net position, rather than as expenses in the statement of
activities.
FINANCIAL ANALYSIS OF THE FUND STATEMENTS
The City uses fund accounting to assure and demonstrate compliance with finance-related legal
requirements. The fund financial statements focus on individual parts of the City’s government,
reporting the City’s operations in more detail than the government-wide financial statements.
The City’s governmental funds provide information on near-term inflows, outflows and balances of
spendable resources. The City’s governmental funds reported combined fund balances at June 30,
2013 of $38,792,082, a decrease of $3,421,366 from the previous fiscal year. Within the change of
combined fund balances, the General Fund decreased by $1,682,408, related to the continued
economic downturn and the loss of redevelopment.
PACKET PAGE: 93
AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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City of San Jacinto
Fund Financial Statements - Fund Balances
As of June 30, 2013 and 2012
(in thousands)
Percent
2013 2012 Change
Nonspendable:
Prepaids $ 116 $ 73 58.9%
Advances receivable 11,788 12,417 (5.1)%
Land held for resale 293 954 (69.3)%
Total nonspendable fund balances 12,197 13,444 (9.3)%
Restricted:
Special revenue funds 14,136 13,928 1.5%
Total restricted fund balances 14,136 13,928 1.5%
Assigned:
Capital projects funds 1,133 1,314 (13.8)%
Total assigned fund balances 1,133 1,314 (13.8)%
Unassigned:
General fund 16,634 17,100 (2.7)%
Debt service funds (443) (441)0.5%
Special revenue funds (3,859) (3,118)23.8%
Capital projects funds (1,006) (14)7085.7%
Total unassigned fund balances 11,326 13,527 (16.3)%
Total fund balance 38,792 42,213 (8.1)%
PACKET PAGE: 94
AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
-11-
General Fund Budgetary Highlights
Over the course of the year, the City revised the City budget with adjustments for revenue and
expenditure appropriations approved after the original budget was adopted.
Certain capital project appropriations originally budgeted but not expended in fiscal year 2012 were re-
appropriated in 2013 as part of the City’s capital budget.
After taking into account these adjustments, actual expenditures were $125,604 higher than final
budget amounts, attributable to increases in general government and community development costs,
offset by some savings from public safety contract services.
Resources available for appropriation were $1,403,876 higher than the final budgeted amount. The
following significant revenue sources were different than anticipated:
Total taxes were approximately 16 percent over budget.
Other revenues were approximately 17 percent over budget.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2013, the City had invested $120,687,306 in a broad range of capital assets, including
police and fire equipment, buildings, parks and park improvements, roads, bridges, and water, solid
waste and sewer utility systems.
City of San Jacinto
Capital Assets
As of June 30, 2013 and 2012
(net of depreciation, in thousands)
2013 2012 2013 2012 2013 2012
Capital assets not being depreciated:
Land and improvements 4,231$ 4,231$ 55$ 55$ 4,286$ 4,286$
Construction in progress 12,491 10,542 1,577 1,553 14,068 12,095
Depreciable capital assets, net of
accumulated depreciation:
Buildings and system 5,730 5,908 4,518 4,654 10,248 10,562
Machinery and equipment 551 906 659 760 1,210 1,666
Improvements other than buildings 1,557 1,654 4,529 4,622 6,086 6,276
Infrastructure 84,789 88,087 - - 84,789 88,087
Total 109,349$ 111,328$ 11,338$ 11,644$ 120,687$ 122,972$
Governmental Business-type
Activities Activities Total
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AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
-12-
This year’s major capital asset additions included:
Government-wide, governmental activities:
One road improvement project and two traffic signalization projects completed at a final cost of
$771,864.
Developer contributions of street and drainage improvements in one development at a total cost
of $359,497.
More detailed information about the City’s capital assets is presented in Note 3 to the financial
statements.
Long-term Debt
At June 30, 2013, the City had $6,841,580 in long-term debt outstanding. More detailed information
about the City’s total long-term liabilities is presented in Note 6 to the financial statements.
City of San Jacinto
Outstanding Debt
As of June 30, 2013 and 2012
(in thousands)
2013 2012 2013 2012 2013 2012
Revenue and other bonds, net -$ -$ 2,930$ 3,265$ 2,930$ 3,265$
Special assessment debt with
government commitment,
including unpaid interest 1,633 1,633 - - 1,633 1,633
Loans payable - - - - - -
Capital leases 49 214 - - 49 214
Unfunded pension liability 1,757 1,941 - - 1,757 1,941
Claims and judgments 275 142 - - 275 142
Compensated absences 198 194 - - 198 194
Total 3,912$ 4,124$ 2,930$ 3,265$ 6,842$ 7,389$
Governmental Business-type
Activities Activities Total
The following are the ratings at the date of bond issuance as determined by Moody’s Investors Service,
Standard and Poors and Fitch rating agencies.
Moody’s S & P Fitch
Insured Issues:
1997 Water Revenue Bonds AAA AA- Not rated
2002 Water Refunding Revenue Bonds Not rated BBB Not rated
PACKET PAGE: 96
AGENDA ITEM 5.1
CITY OF SAN JACINTO
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
-13-
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City is facing significant financial challenges in the years ahead. Developments and home sales
have dropped drastically compared to several years ago. The City is focusing on potential commercial
growth, as well as several possible revenue measures to fund additional public safety services and
ongoing operational costs.
The General Fund budget for 2013-2014 appropriates $19,486,493, an increase of 9.5 percent from the
prior year.
City utility rates for water were last increased by 5% in July 2009, and sewer rates were increased 3%
in July 2011. In March 2013, the City’s solid waste enterprise was taken over by the franchised
operator.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors
with a general overview of the City’s finances, and to demonstrate the City’s accountability for the
money it receives. If you have questions about this report or need additional financial information,
contact the City of San Jacinto Department of Finance, Accounting Division, PO Box 488, San Jacinto,
California 92583, or visit the City’s web page at www.ci.san-jacinto.ca.us/.
PACKET PAGE: 97
AGENDA ITEM 5.1
Basic Financial Statements
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Government-Wide Financial Statements
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AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
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City of San Jacinto
Statement of Net Position
June 30, 2013
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 40,678,738$ 2,197,336$ 42,876,074$
Cash and investments with fiscal agents - 3 3
Receivables:
Accounts 1,420,300 848,858 2,269,158
Interest 218,501 - 218,501
Taxes 2,281,384 - 2,281,384
Notes receivable 3,600,839 4,975 3,605,814
Due from other governments 1,806,092 - 1,806,092
Deposits with others 511,572 - 511,572
Prepaids 116,326 5,946 122,272
Internal balances (330,477) 330,477 -
Inventories - 38,979 38,979
Land held for resale 292,859 - 292,859
Deferred charges - 164,500 164,500
Capital assets:
Land and construction in progress 16,721,763 1,632,397 18,354,160
Other capital assets, net of depreciation 92,627,129 9,706,017 102,333,146
Total Assets 159,945,026 14,929,488 174,874,514
LIABILITIES
Accounts payable and accrued liabilities 3,690,374 739,709 4,430,083
Accrued wages 149,283 65,343 214,626
Accrued interest payable 990 39,084 40,074
Due to other governments 259,385 - 259,385
Retention payable 68,396 - 68,396
Unearned revenues 1,633,491 - 1,633,491
Deposits payable - 264,020 264,020
Noncurrent liabilities:
Due within one year 1,355,785 350,000 1,705,785
Due in more than one year 2,555,795 2,580,000 5,135,795
Total Liabilities 9,713,499 4,038,156 13,751,655
NET POSITION
Net investment in capital assets 109,348,892 8,408,414 117,757,306
Restricted for:
Public safety 1,420,960 - 1,420,960
Public works 11,945,329 - 11,945,329
Community development 10,347,592 - 10,347,592
Culture and leisure 76,721 - 76,721
Unrestricted 17,092,033 2,482,918 19,574,951
Total Net Position 150,231,527$ 10,891,332$ 161,122,859$
Primary Government
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AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-15-
City of San Jacinto
Statement of Activities
For the Year Ended June 30, 2013
Operating Capital
Charges for Contributions Contributions
Functions/Programs Expenses Services and Grants and Grants
Primary Government
Governmental Activities:
General government 3,349,739$ -$ 2,894,940$ 63,010$
Public safety 11,744,607 2,752,400 508,139 -
Public works 5,436,451 66,610 1,759,679 1,094,678
Community development 6,567,720 793,702 978,239 2,923,144
Culture and leisure 925,134 - - -
Interest on long-term debt 16,113 - - -
Total Governmental Activities 28,039,764 3,612,712 6,140,997 4,080,832
Business-Type Activities:
Water 3,710,998 3,400,416 - -
Solid waste 2,354,262 2,228,901 - -
Sewer 683,352 826,188 - -
Total Business-Type Activities 6,748,612 6,455,505 - -
Total 34,788,376$ 10,068,217$ 6,140,997$ 4,080,832$
General Revenues:
Taxes:
Property tax, levied for general purpose
Transient occupancy taxes
Franchise tax
Sales tax
Motor vehicle in lieu tax
Other taxes
Unrestricted investment earnings
Other
Transfers
Total General Revenues
Change in Net Position
Net Position, Beginning of Year
Net Position, End of Year
Program Revenues
PACKET PAGE: 103
AGENDA ITEM 5.1
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Governmental Business-Type
Activities Activities Total
(391,789)$ -$ (391,789)$
(8,484,068) - (8,484,068)
(2,515,484) - (2,515,484)
(1,872,635) - (1,872,635)
(925,134) - (925,134)
(16,113) - (16,113)
(14,205,223) - (14,205,223)
- (310,582) (310,582)
- (125,361) (125,361)
- 142,836 142,836
- (293,107) (293,107)
(14,205,223)$ (293,107)$ (14,498,330)$
2,261,785 - 2,261,785
20,157 - 20,157
1,983,237 - 1,983,237
2,289,342 - 2,289,342
2,444,772 - 2,444,772
198,126 - 198,126
(83,474) 40,681 (42,793)
8,603 - 8,603
231,183 (231,183) -
9,353,731 (190,502) 9,163,229
(4,851,492) (483,609) (5,335,101)
155,083,019 11,374,941 166,457,960
150,231,527$ 10,891,332$ 161,122,859$
Net Revenue (Expense) and Change in Net Position
Primary Government
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AGENDA ITEM 5.1
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PACKET PAGE: 105
AGENDA ITEM 5.1
Fund Financial Statements
PACKET PAGE: 106
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-17-
City of San Jacinto
Governmental Funds
Balance Sheet
June 30, 2013
Capital Projects Special Revenue
City Community
Capital Facilities
General Projects District 2003
ASSETS
Cash and investments 14,996,695$ 10,110,792$ -$
Receivables:
Accounts 835,433 - -
Interest 112,177 - -
Taxes and assessments 411,631 - 55,376
Prepaids 116,326 - -
Due from other governments 1,064,654 - -
Due from other funds 1,844,171 - -
Notes receivable - - -
Advances receivable 3,513,447 - -
Land held for resale - - -
Total Assets 22,894,534$ 10,110,792$ 55,376$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 1,921,423$ 1,049,512$ 506,756$
Accrued payroll 142,529 - -
Retention payable - 68,396 -
Due to other funds - - -
Due to other governments - 115,257 -
Deferred revenue 566,575 - -
Advances payable - 8,877,627 3,240,405
Total Liabilities 2,630,527 10,110,792 3,747,161
Fund Balances:
Nonspendable 3,629,773 - -
Restricted - - -
Assigned - - -
Unassigned 16,634,234 - (3,691,785)
Total Fund Balances (deficit) 20,264,007 - (3,691,785)
Total Liabilities and Fund Balances 22,894,534$ 10,110,792$ 55,376$
PACKET PAGE: 107
AGENDA ITEM 5.1
-18-
Successor Total Non-Major Total
Housing Governmental Governmental
Authority LLPD #2 Funds Funds
-$ 7,614,526$ 7,684,442$ 40,406,455$
444,639 - 74,315 1,354,387
106,324 - - 218,501
- 159,116 1,655,261 2,281,384
- - - 116,326
- - 741,438 1,806,092
- - - 1,844,171
3,600,839 - - 3,600,839
- - 8,274,108 11,787,555
292,859 - - 292,859
4,444,661$ 7,773,642$ 18,429,564$ 63,708,569$
-$ 104,936$ 82,497$ 3,665,124$
- - 6,754 149,283
- - - 68,396
- 5,939 1,838,232 1,844,171
- - 144,128 259,385
4,151,802 - 2,093,719 6,812,096
- - - 12,118,032
4,151,802 110,875 4,165,330 24,916,487
292,859 - 8,274,108 12,196,740
- 7,662,767 6,473,612 14,136,379
- - 1,133,344 1,133,344
- - (1,616,830) 11,325,619
292,859 7,662,767 14,264,234 38,792,082
4,444,661$ 7,773,642$ 18,429,564$ 63,708,569$
Special Revenue
PACKET PAGE: 108
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-19-
City of San Jacinto
Reconciliation of the Balance Sheet of
Governmental Funds to the Statement of Net Position
June 30, 2013
Fund Balance of Governmental Funds 38,792,082$
Amounts reported for governmental activities in
the Statement of Net Position are different because:
Net investment in capital assets have not been included
as financial resources in governmental funds.
Capital assets not being depreciated 16,721,763
Capital assets being depreciated 175,879,462
Accumulated depreciation (83,252,333)
Long-term liabilities applicable to governmental activities are not due and payable
in the current period and, accordingly, are not reported as governmental fund
liabilities. All liabilities (both current and long-term) are reported in the Statement
of Net Position.
Compensated absences (197,507)
Special assessment debt and unmatured interest (1,633,491)
Unfunded pension liability (1,756,600)
Capital leases (49,163)
Accrued interest payable (990)
Deferred revenue balances relating to certain accounts and loans receivable are not
reported as deferred revenue in the Statement of Net Position since recognition is
not based upon measurable and available criteria.
Low and moderate housing loans receivable 3,600,839
Accrued interest on low and moderate housing loans 106,324
Due from other governments 1,471,442
Internal Service Funds are used by management to charge costs of certain
activities on individual funds. The assets and liabilities of the Internal Service
Funds must be added to the Statement of Net Position since revenue recognition
is not based upon measurable and available criteria.
Fund Net Position of Internal Service Funds 549,699
Net Position of Governmental Activities 150,231,527$
PACKET PAGE: 109
AGENDA ITEM 5.1
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PACKET PAGE: 110
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-20-
City of San Jacinto
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
For the Year Ended June 30, 2013
Capital Projects Special Revenue
City Community
Capital Facilities
General Projects District 2003
REVENUES
Taxes 6,554,521$ -$ -$
Assessments - - 1,871,184
Licenses and permits 553,816 - -
Fines and forfeitures 409,323 - -
Development fees - - -
Intergovernmental 2,782,361 - -
Charges for services 216,179 - -
Investment earnings (31,969) - -
Other 3,442,349 - -
Total Revenues 13,926,580 - 1,871,184
EXPENDITURES
Current:
General government 2,679,394 - 25,038
Public safety 9,382,113 - 2,495,328
Public works 253,428 - -
Community development 3,407,153 - -
Culture and leisure 265,268 - -
Debt service:
Principal 66,243 - -
Interest 4,087 - 9,453
Capital outlay 22,494 3,030,373 -
Total Expenditures 16,080,180 3,030,373 2,529,819
Excess (Deficiency) of Revenues
Over (Under) Expenditures (2,153,600) (3,030,373) (658,635)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property 19,870 - -
Transfers in 986,069 3,030,373 -
Transfers out (534,747) - -
Total Other Financing Sources
(Uses) 471,192 3,030,373 -
Net Change in Fund Balances (1,682,408) - (658,635)
Fund Balances (Deficit), Beginning of Year 21,946,415 - (3,033,150)
Fund Balances (Deficit), End of Year 20,264,007$ -$ (3,691,785)$
PACKET PAGE: 111
AGENDA ITEM 5.1
-21-
Successor Total Non-Major Total
Housing Governmental Governmental
Authority LLPD #2 Funds Funds
-$ -$ 221,602$ 6,776,123$
- 2,102,258 1,181,902 5,155,344
- - - 553,816
- - 85,305 494,628
- 21,382 18,818 40,200
- - 2,842,761 5,625,122
- - - 216,179
- 81,079 158,005 207,115
- 49,386 333,818 3,825,553
- 2,254,105 4,842,211 22,894,080
- - 1,550 2,705,982
- - 78,233 11,955,674
- - 1,053,477 1,306,905
- 2,925,481 320,267 6,652,901
- - 679,036 944,304
- - 99,520 165,763
- - 5,899 19,439
- 29,303 39,249 3,121,419
- 2,954,784 2,277,231 26,872,387
- (700,679) 2,564,980 (3,978,307)
- - 63,009 82,879
- 17,238 194,563 4,228,243
- - (3,219,434) (3,754,181)
- 17,238 (2,961,862) 556,941
- (683,441) (396,882) (3,421,366)
292,859 8,346,208 14,661,116 42,213,448
292,859$ 7,662,767$ 14,264,234$ 38,792,082$
Special Revenue
PACKET PAGE: 112
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-22-
City of San Jacinto
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
For the Year Ended June 30, 2013
Net Change in Fund Balances - Total Governmental Funds (3,421,366)$
Amounts reported for governmental activities in the Statement of Activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
Statement of Activities the cost of those assets is allocated over their estimated
useful lives as depreciation expense or allocated to the appropriate functional
expense when the cost is below the capitalization threshold. Additionally, capital
contributions are reported as program revenues in the Statement of Activities.
This activity is reconciled as follows:
Cost of assets capitalized less disposals 2,792,626
Depreciation expense (5,073,598)
Loss on disposal of assets (19,866)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the fund. 483,154
Long-term debt proceeds provide current financial resources to Governmental
Funds, but issuing debt increases long-term liabilities in the Government-Wide
Statement of Net Position. Principal repayments of long-term debt are
expenditures/uses in the Governmental Funds, but they reduce long-term
liabilities in the Government-Wide Statement of Net Position.
Repayments:
Unfunded pension liability 184,110
Capital leases 165,763
Some expenses reported in the Statement of Activities do not require the use of
current financial resources, and therefore, are not reported as expenditures in the
governmental funds.
Compensated absences (3,937)
Accrued interest payable 990
Internal Service Funds are used by management to charge the cost of insurance
to individual funds. The net revenue of the Internal Service Funds are reported
with governmental activities. 40,632
Change in Net Position of Governmental Activities (4,851,492)$
PACKET PAGE: 113
AGENDA ITEM 5.1
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PACKET PAGE: 114
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-23-
City of San Jacinto
Statement of Net Position
Proprietary Funds
June 30, 2013
Water Solid Waste
ASSETS
Current Assets:
Cash and investments 958,935$ 5,490$
Cash and investments with fiscal agents 3 -
Receivables, net:
Accounts 578,620 49,773
Prepaid expenses 2,977 -
Deposits with others - -
Inventories 38,979 -
Total Current Assets 1,579,514 55,263
Non-Current Assets:
Notes Receivable - -
Deferred charges 164,500 -
Advances receivable 211,921 -
Capital assets:
Land 55,222 -
Construction in progress 1,194,716 -
Building and system 6,747,489 -
Machinery and equipment 2,405,165 -
Improvements other than buildings 3,286,536 -
Less accumulated depreciation (5,222,023) -
Total Non-Current Assets 8,843,526 -
Total Assets 10,423,040 55,263
LIABILITIES
Current Liabilities:
Accounts payable 555,539 55,263
Accrued wages 45,868 -
Accrued interest 39,084 -
Deposits payable 264,020 -
Bonds payable - current 350,000 -
Total Current Liabilities 1,254,511 55,263
Noncurrent liabilities:
Advances payable 405,381 -
Claims payable - -
Bonds payable 2,580,000 -
Total Non-Current Liabilities 2,985,381 -
Total Liabilities 4,239,892 55,263
NET POSITION
Net investment in capital assets 5,537,105 -
Unrestricted 646,043 -
Total Net Position 6,183,148$ -$
Business-type Activities
Enterprise Funds
PACKET PAGE: 115
AGENDA ITEM 5.1
-24-
Governmental
Activities -
Internal
Sewer Total Service Fund
1,232,911$ 2,197,336$ 272,283$
- 3 -
220,465 848,858 65,913
2,969 5,946 -
- - 511,572
- 38,979 -
1,456,345 3,091,122 849,768
4,975 4,975 -
- 164,500 -
523,937 735,858 -
- 55,222 -
382,459 1,577,175 -
31,301 6,778,790 -
455,307 2,860,472 -
3,327,133 6,613,669 -
(1,324,891) (6,546,914) -
3,400,221 12,243,747 -
4,856,566 15,334,869 849,768
128,907 739,709 25,250
19,475 65,343 -
- 39,084 -
- 264,020 -
- 350,000 -
148,382 1,458,156 25,250
- 405,381 -
- - 274,819
- 2,580,000 -
- 2,985,381 274,819
148,382 4,443,537 300,069
2,871,309 8,408,414 -
1,836,875 2,482,918 549,699
4,708,184$ 10,891,332$ 549,699$
Business-type Activities
Enterprise Funds
PACKET PAGE: 116
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-25-
City of San Jacinto
Statement of Revenues, Expenses and Changes in Net Position
Proprietary Funds
For the Year Ended June 30, 2013
Water Solid Waste
OPERATING REVENUES
Sales and charges for services 3,393,829$ 2,106,632$
Miscellaneous 6,587 122,269
Total Operating Revenues 3,400,416 2,228,901
OPERATING EXPENSES
Personnel services 407,501 30,094
Employee benefits 253,917 18,355
Office expense 182,239 448
Depreciation 414,169 -
Outside services 118,076 1,936,896
Repairs and maintenance 234,021 -
Utilities 309,103 57
Franchise - 364,352
Overhead allocations 491,664 4,060
Claims and judgements - -
Total Operating Expenses 2,410,690 2,354,262
Operating Income (Loss) 989,726 (125,361)
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 16,605 2,663
Watermaster charges (1,106,648) -
Interest and fiscal charges (183,618) -
Other revenues (expenses) (10,042) -
Total Non-Operating Revenues
(Expenses) (1,283,703) 2,663
Other income before transfers (293,977) (122,698)
Transfers in - -
Transfers out - (231,183)
Change in Net Position (293,977) (353,881)
Net Position, Beginning of Year 6,477,125 353,881
Net Position, End of Year 6,183,148$ -$
Business-type Activities
Enterprise Funds
PACKET PAGE: 117
AGENDA ITEM 5.1
-26-
Governmental
Activities -
Internal
Sewer Total Service Fund
803,493$ 6,303,954$ 473,211$
22,695 151,551 25,264
826,188 6,455,505 498,475
196,240 633,835 -
128,879 401,151 -
22,423 205,110 -
150,586 564,755 -
27,148 2,082,120 143,039
38,715 272,736 82,942
2,433 311,593 -
- 364,352 -
105,278 601,002 -
- - 318,281
671,702 5,436,654 544,262
154,486 1,018,851 (45,787)
21,413 40,681 5,155
- (1,106,648) -
- (183,618) -
(11,650) (21,692) -
9,763 (1,271,277) 5,155
164,249 (252,426) (40,632)
- - 56,800
- (231,183) (299,679)
164,249 (483,609) (283,511)
4,543,935 11,374,941 833,210
4,708,184$ 10,891,332$ 549,699$
Business-type Activities
Enterprise Funds
PACKET PAGE: 118
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-27-
City of San Jacinto
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2013
Water Solid Waste
Cash Flows from Operating Activities:
Cash received from customers 3,506,184$ 2,574,376$
Cash payments to suppliers (884,288) (2,417,225)
Cash payments to employees for services (673,739) (53,549)
Net Cash Provided By (Used for)
Operating Activities 1,948,157 103,602
Cash Flows from Non-Capital Financing Activities:
Transfers to (from) other funds - (231,183)
Advances (to) from other funds (186,754) -
Due (to) from other funds - -
Net Cash Provided By (Used for)
Non-Capital Financing Activities (186,754) (231,183)
Cash Flows from Capital and Related Financing Activities:
Acquisition or construction of capital assets (223,017) -
Miscellaneous 10,268 -
Bond principal paid (335,000) -
Watermaster charges paid (1,106,648) -
Interest and fiscal charges paid (188,065) -
Net Cash Provided by (Used for)
Capital and Related Financing Activities (1,842,462) -
Cash Flows from Investing Activities:
Interest income received 16,605 2,663
Due from others - -
Net Cash Provided By (Used for)
Investing Activities 16,605 2,663
Net Increase (Decrease) in
Cash and Cash Equivalents (64,454) (124,918)
Cash and Cash Equivalents at Beginning of Year 1,023,392 130,408
Cash and Cash Equivalents at End of Year 958,938$ 5,490$
Reconciliation of cash and cash equivalents to amounts
reported on the statement of net position:
Reported on the statement of net position:
Cash and investments 958,935$ 5,490$
Cash and investments with fiscal agents 3 -
Totals 958,938$ 5,490$
Business-type Activities -
Enterprise Funds
PACKET PAGE: 119
AGENDA ITEM 5.1
-28-
Governmental
Activities -
Internal
Sewer Total Service Fund
696,751$ 6,777,311$ 497,407$
(81,132) (3,382,645) (443,812)
(322,279) (1,049,567) -
293,340 2,345,099 53,595
- (231,183) (242,879)
169,333 (17,421) -
- - (50,958)
169,333 (248,604) (293,837)
(35,558) (258,575) -
(11,650) (1,382) -
- (335,000) -
- (1,106,648) -
- (188,065) -
(47,208) (1,889,670) -
21,413 40,681 5,155
(4,975) (4,975) -
16,438 35,706 5,155
431,903 242,531 (235,087)
801,008 1,954,808 507,370
1,232,911$ 2,197,339$ 272,283$
1,232,911$ 2,197,336$ 272,283$
- 3 -
1,232,911$ 2,197,339$ 272,283$
Business-type Activities -
Enterprise Funds
PACKET PAGE: 120
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-29-
Continued
City of San Jacinto
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2013
Water Solid Waste
Reconciliation of operating income (loss) to net cash
provided by (used for) operating activities:
Operating income (loss): 989,726$ (125,361)$
Adjustments to reconcile operating income (loss) to
net cash provided by (used for) operating activities:
Depreciation 414,169 -
(Increase) decrease in assets:
Accounts receivable 40,841 345,475
Inventories (2,503) -
Prepaid expenses (2,977) -
Deposits with others - -
Increase (decrease) in liabilities:
Accounts payable 456,295 (111,412)
Accrued wages 6,383 (5,100)
Deposits payable 46,223 -
Claims payable - -
Total Adjustments 958,431 228,963
Net Cash Provided By (Used for) Operating Activities 1,948,157$ 103,602$
Enterprise Funds
Business-type Activities -
PACKET PAGE: 121
AGENDA ITEM 5.1
-30-
Governmental
Activities -
Internal
Sewer Total Service Fund
154,486$ 1,018,851$ (45,787)$
150,586 564,755 -
(129,437) 256,879 (1,068)
- (2,503) -
(2,969) (5,946) -
- - (37,240)
117,834 462,717 4,432
2,840 4,123 -
- 46,223 -
- - 133,258
138,854 1,326,248 99,382
293,340$ 2,345,099$ 53,595$
Enterprise Funds
Business-type Activities -
PACKET PAGE: 122
AGENDA ITEM 5.1
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PACKET PAGE: 123
AGENDA ITEM 5.1
Fiduciary Funds
PACKET PAGE: 124
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-31-
City of San Jacinto
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2013
Private
Purpose
Trust Fund Agency
ASSETS
Cash and investments 4,091,780$ 4,946,089$
Cash and investments with fiscal agents 5 1,697,247
Receivables:
Accounts 27,928 161,882
Due from other governments 349,304 5
Property held for resale 708,200 -
Capital assets not being depreciated:
Land 792,616 -
Total Assets 5,969,833$ 6,805,223$
LIABILITIES
Accounts payable and accrued liabilities 4,073,435$ 97,901$
Deposits payable - 3,251,486
Due to others 600,000 132,570
Due to bond holders - 3,323,266
Deferred revenue 117,846 -
Long-term liabilities:
Due within one year 229,507 -
Due in more than one year 7,782,300 -
Total Liabilities 12,803,088 6,805,223$
NET POSITION
Net position (deficit) held for dissolution of Redevelopment Agency (6,833,255)$
PACKET PAGE: 125
AGENDA ITEM 5.1
The accompanying notes are an integral part of these financial statements.
-32-
City of San Jacinto
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the Year Ended to June 30, 2013
Private
Purpose
Trust Fund
ADDITIONS
Property taxes 359,138$
Investment earnings 46,185
Other revenue 761,460
Total additions 1,166,783
DEDUCTIONS
Administrative payments 120,111
Contributions to other governments 4,837,016
Debt service:
Interest expense 356,320
Total deductions 5,313,447
Change in net position (4,146,664)
Net Position, Beginning of year (2,686,591)
Net Position, End of year (6,833,255)$
PACKET PAGE: 126
AGENDA ITEM 5.1
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AGENDA ITEM 5.1
Notes to the Basic Financial Statements
PACKET PAGE: 128
AGENDA ITEM 5.1
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AGENDA ITEM 5.1
-33-
City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
I. SIGNIFICANT ACCOUNTING POLICIES
Note 1: Summary of significant accounting policies
a. Reporting entity
The City of San Jacinto (City) was incorporated on April 20, 1888 under the laws of the State of
California and enjoys all the rights and privileges applicable to a general law city. It is governed by
an elected five-member board. As required by generally accepted accounting principles, these
financial statements present the City of San Jacinto (the primary government) and its component
units. The component units discussed below are included in the reporting entity because of their
operational or financial relationships with the City of San Jacinto.
Blended Component Units
San Jacinto Financing Authority
The Authority is a joint exercise of powers authority organized and existing under and by virtue of
the Joint Exercise of Powers Act. The City and the Agency formed the Authority by the execution
of a joint exercise of powers agreement dated as of May 25, 1993, and amended and restated in
its entirety on May 19, 1997 by and between the City and the Agency. Pursuant to the Joint
Powers Act, the Authority is authorized to issue revenue bonds to provide funds to make loans to
public entities; such revenue bonds are to be repaid from the repayments of such loans. The
Authority is governed by a five-member Board which consists of all members of the City Council.
The Mayor of the City is the Chairperson of the Authority.
The City Manager acts as the Executive Director, the City Clerk acts as the Secretary and the
Finance Director of the City acts as the Treasurer of the Authority.
Industrial Development Authority
The Industrial Development Authority of the City of San Jacinto was activated by the City Council
of the City of San Jacinto. The purpose of the Industrial Development Authority is to assist the
community in industry development by providing a financing mechanism to encourage such
development in the City.
b. Government-wide and fund financial statements
The government-wide financial statements include a statement of net position and a statement of
activities. These statements present summaries of governmental and business-type activities for
the City accompanied by a total column. Fiduciary activities of the City are not included in these
statements. Certain eliminations have been made as prescribed by GASB Statement No. 34 in
regard to interfund activities, payables, and receivables. All internal balances in the statement of
net position have been eliminated except those representing balances between the governmental
activities and the business-type activities, which are presented as internal balances and eliminated
in the total primary government column. 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 user fees and charges for support.
PACKET PAGE: 130
AGENDA ITEM 5.1
-34-
City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
b. Government-wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct and indirect expenses of a
given function or segment are offset by program revenues. Direct expenses are those that 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, including
special assessments, 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
revenue are reported instead as general revenues. In the statement of activities, Internal Service
Fund transactions have been eliminated; however, those transactions between the governmental
and business-type activities have not been eliminated.
Separate financial statements are provided for governmental, proprietary, and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate
columns in the fund financial statements.
c. Measurement focus, basis of accounting, and financial statement presentation
The government-wide statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of the cash flows. Accordingly, all of the City's assets and
liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are
included in the accompanying statement of net position. The statement of activities presents
changes in net position. Under the accrual basis of accounting, revenues are recognized in the
period in which they are earned while expenses are recognized in the period in which the liability
is incurred. The types of transactions reported as program revenues for the City are reported in
three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital
grants and contributions.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified-accrual basis of accounting. Under the modified-accrual
basis of accounting, revenues are recognized in these funds when susceptible to accrual (i.e.
when they are both measurable and available). "Measurable" means the amount of the
transaction can be determined and "available" means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current period. For this purpose, the City
considers property taxes collected after year-end, as available if they are collected within 60 days
of the end of the current fiscal period. Other revenues susceptible to accrual include sales tax,
state gasoline taxes, utility users tax, investment income, and certain other intergovernmental
revenues. Expenditures in the governmental funds are generally recognized in the accounting
period in which the related fund liability is incurred, if measurable, except for unmatured principal
and interest on general long-term debt, as well as compensated absences and claims and
judgments, which are recognized when due.
PACKET PAGE: 131
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
c. Measurement focus, basis of accounting, and financial statement presentation (continued)
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another fund.
The City Capital Projects Fund is used to account for construction from various sources.
The Community Facilities District 2003 Fund is used to account for the funding of increased public
safety services in the District.
The Successor Housing Authority Fund is used to account for the City's housing-related activities.
The fund was established as the Housing Successor of the former Agency’s Low and Moderate
Housing fund which was eliminated as of February 1, 2012.
The LLPD #2 Special Revenue Fund is used to account for special assessment tax revenue
activity in the City’s Districts, restricted for maintenance and service to District facilities.
The City reports the following major proprietary funds:
The Water Fund is used to account for the provision of water services to the residences and
businesses of the City.
The Solid Waste Fund is used to account for the provision of solid waste services to the
residences and businesses of the City.
The Sewer Fund is used to account for the revenues and expenses in connection with the
operation and improvement of the City's sewer system.
Additionally, the City reports the following fund types:
The Internal Service Funds are used to account for the resources, goods, and services that are
provided by one department to other departments or agencies of the City on a cost-reimbursement
basis. The City’s Internal Service Fund accounts for Workers Compensation and General Liability
Insurance services.
The Agency Funds are used to account for the resources held by the City in a fiduciary capacity.
The Private Purpose Trust Fund is used to account for the activities of the Successor Agency to
the Redevelopment Agency to the City of San Jacinto. The fund's primary purpose is to expedite
the dissolution of the former Agency's net position (except for the low and moderate income
housing funds non-cash assets) in accordance with AB X1 26 and AB 1484.
PACKET PAGE: 132
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
c. Measurement focus, basis of accounting, and financial statement presentation (continued)
GASB No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-
November 30, 1989 FASB and AICPA Pronouncements established accounting and financial
reporting standards for the financial statements of state and local governments. The standard
incorporates into the GASB’s authoritative literature the applicable guidance previously only found
in certain FASB and AICPA pronouncements issued before November 30, 1989.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund's principal ongoing operations. The
principal operating revenues for the Enterprise Funds are charges for goods and services.
Operating expenses for these same Enterprise Funds include the cost of sales and services,
administration expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
The City's fiduciary funds include Agency Funds, which are custodial in nature (assets equal
liabilities) and do not involve measurement of results of operations.
d. Accounting for encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable appropriation,
is employed in the governmental fund types.
e. Cash and investments
For the purpose of the statement of cash flows, the City considers cash and cash equivalents as
short term, highly liquid investments that are both readily convertible to known amounts of cash
and so near their maturity that they present insignificant risk of changes in value because of
changes in interest rates. The City follows the practice of pooling cash and investments of all
funds. Since cash and investments are pooled the City utilizes the assumption that cash and
investments in the Enterprise and Internal Service Funds are cash and cash equivalents.
PACKET PAGE: 133
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
f. Restricted cash and investments
Cash and investments restricted as to their use either by bond resolution or by the funding source
to a specific purpose are classified as restricted cash and investments.
g. Inventories
Inventories of materials and supplies are valued at cost using the first-in, first-out basis. The City
uses the consumption method of accounting for inventories.
h. Property held for resale
The Successor Housing Authority Fund has property held for resale with a net realizable value of
$292,859 to be used to redevelop blighted properties within the City.
i. Judgments and claims
The City utilizes its internal service funds to account for judgments and claims. Self-insurance
claims payable of $220,813 and $54,006, respectively, are recorded in the Workers’
Compensation and Liability Insurance funds.
j. Compensated absences
In accordance with GASB Statement No. 16, a liability is recorded for unused vacation and similar
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 payments upon termination or retirement.
Under GASB Statement No. 16, a liability is recorded for unused sick leave balances only to the
extent that it is probable that the unused balances will result in termination payments. Other
amounts of unused sick leave are excluded from the liability since their payment is contingent
solely upon the occurrence of a future event (illness) which is outside the control of the City and
the employee.
In governmental funds, compensated absences (unpaid vacation and sick leave) are recorded as
expenditures in the year they are paid. The balance of unpaid vacation and vested sick leave at
year end is recorded in the government-wide financial statements as these amounts will be
liquidated from future resources.
Sick leave is payable when an employee is unable to work because of illness. Employees may
accrue sick leave up to a maximum of 960 hours. However, this accrual is not paid to employees
upon termination. No liability is accrued at June 30, 2013 for sick leave.
PACKET PAGE: 134
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
k. Interfund advances
The City Capital Projects Fund accounts for the City capital projects expenditures. It is the City’s
policy and practice to transfer cash (advance funds), even if not yet received, to the City Capital
Projects Fund at the time of project commitment. Advances payable from the City Capital Projects
Fund and receivable to the advancing fund, are recorded to reflect the outstanding amounts
advanced at June 30, 2013. When funds are expended at the City’s Capital Projects Fund a
transfer is recorded between the two funds and the advance is respectively relieved.
l. Use of restricted resources
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, and then unrestricted resources as they are needed.
m. Use of estimates in the preparation of financial statements
The financial statements have been prepared in accordance with generally accepted accounting
principles and necessarily include amounts based on estimates and assumptions by management.
Actual results could differ from those amounts.
n. Capital assets
Capital assets, which include property, plant and equipment, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. Capital assets (excluding
infrastructure) are defined by the City as assets with an initial, individual cost of more than $5,000
and an estimated useful life in excess of two years. Infrastructure assets are defined by the City
as assets with an initial, individual cost of more than $50,000 and an estimated useful life in
excess of two years. Such assets are capitalized at historical cost or estimated historical cost if
purchased or constructed. Donated capital assets are recorded at estimated fair market value at
the date of donation.
Property, plant and equipment of the City is depreciated using the straight-line method over the
following useful lives:
Buildings - 40 years
Improvements - 40 years
Equipment - 5 to 7 years
Infrastructure - 20 to 80 years
PACKET PAGE: 135
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
o. Property tax calendar
In 1978, a state constitutional amendment (Proposition 13) provided that the property tax rate be
generally limited to 1% of market value, levied only by the county and shared with all other
jurisdictions. The County of Riverside collects property taxes for the City. Tax liens attach
annually as of 12:01 A.M. on the first day in March preceding the fiscal year for which the taxes
are levied. The tax levy covers the fiscal period July 1st to June 30th. All secured personal
property taxes and one-half of the taxes on real property are due November 1st; the second
installment is due February 1st. All taxes are delinquent, if unpaid, on December 10th and April 10th
respectively. Unsecured personal property taxes become due on the first of March each year and
are delinquent, if unpaid, on August 31st. For governmental funds, City property tax revenues are
recognized when levied to the extent that they result in current receivables collectible within 60
days. In the government-wide statements, revenues are recognized in the year taxes are levied.
p. Pension plan
All permanent City employees are members of the State of California Public Employees'
Retirement System (PERS). The City funds substantially all pension costs as determined annually
by a PERS actuary (see Note 5).
q. Fund balance
Fund balance is classified in accordance with GASB Statement No. 54, which classifies fund
balance into five different components. The components are nonspendable, restricted, committed,
assigned, and unassigned.
Nonspendable - resources that are not in spendable form or required to be maintained intact
such as an endowment.
Restricted - resources that are subject to externally enforceable legal restrictions; these
restrictions are either externally imposed by creditors, grantors, contributors, or laws or
regulations of other governments or imposed by law through constitutional provisions or
enabling legislation.
Committed - resources that are constrained to specific purposes by a formal action of the City
Council such as an ordinance or resolution, whichever is the higher level of constraint. The
constraint remains binding unless removed in the same formal manner by the City Council.
Council action to commit fund balance must occur within the fiscal reporting period while the
amount committed may be determined subsequently.
Assigned - resources that are constrained by the City’s intent to be used for specific purposes,
but are neither restricted nor committed.
Unassigned - within the General Fund, the residual resources, either positive or negative, in
excess of what can be properly classified in one of the other four fund balance categories.
Within all other governmental funds, any negative residual resources.
PACKET PAGE: 136
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
q. Fund balance (continued)
When expenditures are incurred for purposes for which both restricted and unrestricted
(committed, assigned, or unassigned) fund balances are available, the City’s policy is to first apply
restricted fund balance. When expenditures are incurred for purposes for which committed,
assigned or unassigned fund balances are available, the City’s policy is to first apply committed
fund balance, then assigned fund balance, and finally unassigned fund balance.
Those charged with governance approved the Finance Director to have authority to assign
unrestricted fund balance amounts where the City’s intent is for those amounts to be used for
specific purposes. This delegation of authority is for the sole purpose of reporting these amounts
in the annual financial statements.
r. Implementation of new pronouncements
Beginning with the current fiscal year, the City implemented GASB No. 63, Financial Reporting of
Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. This statement
is designed to improve financial reporting by standardizing the presentation of deferred outflows of
resources and deferred inflows of resources and their effects on the government’s net position.
Deferred outflows of resources are transactions that result in the consumption of net position in
one period that are applicable to future periods and are not considered assets as described by the
statement. Deferred outflows of resources are required to be presented separately after assets on
the statement of net position.
Deferred inflows of resources are transaction that result in the acquisition of net position in one
period that are applicable to future periods and are not considered to be liabilities as described by
the statement. Deferred outflows of resources are required to be presented separately after
liabilities on the statement of net position.
The statement defines net position as the residual of all other elements presented in a statement
of financial position. It is the difference between (a) assets and deferred outflows of resources and
(b) liabilities and deferred inflows of resources.
For the period covered by these financial statements the City has no transactions classified as
deferred inflows or outflows of resources.
PACKET PAGE: 137
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
II. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
a. Budgetary principles
General budget policies
The City Council approves each year’s budget submitted by the City Manager prior to the
beginning of the new fiscal year. Public hearings are conducted prior to its adoption by the
Council. Supplemental appropriations, where required during the period, are also approved by the
Council. Several supplemental appropriations were made during the year. Intrafund budget
changes are approved by the City Manager. In most cases, expenditures may not exceed
appropriations at the department level. At fiscal year-end all unencumbered operating budget
appropriations lapse with the exception of continuing appropriations.
General Fund expenditures may not legally exceed budgeted appropriations. Budgeted revenue
amounts, as presented in the accompanying basic financial statements, represent the original
budget as modified by adjustments during the year for those items which were contingent upon
new or additional revenue sources. Budgeted expenditure amounts represent original
appropriations adjusted for supplemental appropriations during the year.
b. Excess of expenditures over appropriations
Excess of expenditures over appropriations by department in individual funds are as follows:
Final
Budget Expenditures Excess
General Fund by Function:
General government 2,558,886$ 2,679,394$ (120,508)$
Community development 3,088,444 3,407,153 (318,709)
Culture and leisure 223,619 265,268 (41,649)
Capital outlay - 22,494 (22,494)
Special Revenue Funds:
LLPD #1 654,000 662,860 (8,860)
AB 1600 6,357 7,217 (860)
Developer Impact Fees 32,776 36,525 (3,749)
Governmental Funds - Major Fund
Governmental Funds - Non-Major Funds
PACKET PAGE: 138
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 1: Summary of significant accounting policies (continued)
c. Negative fund balance and other disclosures
The following funds had negative fund balances at June 30, 2013:
Amount
Special Revenue:
Community Facilities District 2003 (3,691,785)$
Special Revenue:
CSA 152 (66,692)
SB 621 Gaming Impact Grants (34,247)
CDBG (20,869)
Capital Projects:
TUMF Capital Projects (1,005,927)
-
Debt Service:
Assessment District 87-1 (443,007)
Governmental Funds - Major Funds
Governmental Funds - Non-Major Funds
The City plans to eliminate negative fund balance in the Community Facilities District 2003 fund
(currently covered by a loan from the General Fund) with increased revenues from future growth,
decreased future expenditures, and possibly a new per-parcel tax that would eliminate this CFD
and pay off the loan from the General Fund. The City plans to eliminate negative fund balance in
the CSA 152 fund with revenue that was received in September 2013. The City plans to eliminate
negative fund balance in the SB 621 Gaming Impact Grants fund with future investment earnings
or a transfer from the General Fund. The City plans to eliminate negative fund balance in the
Assessment District 87-1 fund with possible acceptance of a Bond Tender offer and a transfer
from the General Fund.
PACKET PAGE: 139
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
III. DETAIL NOTES ON ALL FUNDS
Note 2: Cash and investments
Cash and investments as of June 30, 2013 are classified in the accompanying financial statements as
follows:
Statement of Net Position
Governmental Activities:
Cash and investments 40,678,738$
Business-Type Activities:
Cash and investments 2,197,336
Cash and investments with fiscal agents 3
Total 42,876,077
Statement of Fiduciary Net Position:
Cash and investments 9,037,869
Cash and investments with fiscal agents 1,697,252
Total 10,735,121
Total Cash and Investments 53,611,198$
Cash and investments are comprised of the following:
Demand accounts/money market account 20,861,028$
Cash on hand 5,850
Investments 32,744,320
Total 53,611,198$
The City follows the practice of pooling cash and investments for all funds except for funds required to
be held by outside fiscal agents under the provisions of bond indentures.
Interest income earned on pooled cash and investments is allocated monthly by the City to the
various funds based on the month-end cash balance. Interest income from cash and investments
with fiscal agent is credited directly to the related fund.
Investments authorized by the California Government Code and the City’s investment policy
The table on the following page identifies the investment types that are authorized for the City’s
investment policy. The table also identifies certain provisions of the City’s investment policy that
address interest rate risk, credit risk and concentration of credit risk. This table does not address
investments of debt proceeds held by bond trustees 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.
PACKET PAGE: 140
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 2: Cash and investments (continued)
Maximum Maximum
Investment Types Maximum Percentage Investment
Authorized by State Law Maturity Allowed* in One Issuer
U.S. Treasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Commercial Paper 270 days 15% 10%
Negotiable Certificates of Deposit 5 years 10% None
Repurchase Agreements 1 year 10% None
Medium-Term Corporate Notes 5 years 20% None
Money Market Mutual Funds N/A 20% None
Mutual Funds N/A 18% None
Time Deposits N/A 30% None
Local Agency Investment Fund (LAIF) N/A 90% $50,000,000
California Asset Management Program N/A 50% None
*Based on state law requirements or investment policy requirements, whichever is more restrictive.
Investments authorized by debt agreements
Provisions of the debt agreements, rather than the general provisions of the California Government
Code or the City’s investment policy govern investment of debt proceeds held by bond trustees. The
table below identifies the investment types that are authorized for investments held by bond trustees.
The table also identifies certain provisions of these debt agreements that address interest rate risk,
credit risk, and concentration of credit risk.
Authorized Maximum Percentage Investment
Investment Type Maturity Allowed in One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Investment Agreements None None None
Certificates of Deposit, Savings Account None None None
Municipal Obligations None None None
Repurchase Agreements None None None
Local Agency Investment Fund (LAIF) None None $50,000,000
PACKET PAGE: 141
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 2: Cash and investments (continued)
Disclosures relating to interest rate risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. One of the ways that the City manages its exposure to
interest rate risk is by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held
by bond trustees) to market interest rate fluctuations is provided by the following table that shows the
distribution of the City’s investments by maturity:
Investment Type Totals 12 or Less 13 to 24 25 to 60 More than 60
Local Agency Investment Fund (LAIF) 5,928,386$ 5,928,386 -$ -$ -$
Certificates of Deposit 5,210,708 5,210,708 - - -
U.S. Treasury Obligations 6,063,652 777,665 2,606,917 2,679,070 -
U.S. Agency Securities 9,383,730 2,692,546 2,658,117 4,033,067 -
Commercial Paper 45,932 45,932 - - -
Medium-Term Corporate Notes 4,414,657 607,365 1,699,693 2,107,599 -
Held by Bond Trustees:
Certificates of Deposit 750,005 - - 750,005 -
Money Market Funds 947,250 947,250 - - -
Total 32,744,320$ 16,209,852$ 6,964,727$ 9,569,741$ -$
Remaining Maturity (In Months)
PACKET PAGE: 142
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 2: Cash and investments (continued)
Disclosures relating to credit risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the minimum rating required by (where applicable)
the City’s investment policy or debt agreements, and the actual rating as of year-end for each
investment type.
Minimum
Investment Type Totals legal rating AAA to AA- A+ to A Not rated
Local Agency Investment Fund (LAIF) 5,928,386$ N/A -$ -$ 5,928,386$
Certificates of Deposit 5,210,708 N/A - - 5,210,708
U.S. Treasury Obligations 6,063,652 N/A 1,604,475 - 4,459,177
U.S. Agency Securities 9,383,730 N/A 6,087,193 - 3,296,525
Commercial Paper 45,932 N/A - - 45,932
Medium-Term Corporate Notes 4,414,657 N/A 932,418 1,332,649 2,149,590
Held by Bond Trustees:
Certificates of Deposit 750,005 N/A - - 750,005
Money Market Funds 947,250 AAA 947,250 - -
Total 32,744,320$ 9,571,336$ 1,332,649$ 21,840,323$
Rating as of year end
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. At June 30, 2013, the City held
certificates of deposit with two financial institutions comprising 9.7 percent of total City funds.
Issuer: Amount
Bank of Hemet 2,609,455$
Rabobank 2,601,253
PACKET PAGE: 143
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 2: Cash and investments (continued)
Custodial credit risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover collateral
securities that are in the possession of an outside party. The custodial credit risk for investments is
the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a
government will not be able to recover the value of its investment or collateral securities that are in the
possession of another party. The California Government Code and the City’s investment policy do not
contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits
or investments, other than the following provision for deposits: The California Government Code
requires that a financial institution secure deposits made by state or local governmental units by
pledging securities in an undivided collateral pool held by a depository regulated under state law
(unless so waived by the governmental unit). The market value of the pledged securities in the
collateral pool must equal at least 110% of the total amount deposited by the public agencies.
California law also allows financial institutions to secure City deposits by pledging first trust deed
mortgage notes having a value of 150 percent of the secured public deposits, and other eligible
securities as defined by Government Code Sections 53651 and 53652. At June 30, 2013, the City's
deposits held in the financial institutions (Bank of Hemet and Rabobank) were $10,586,721 and
$15,459,780, respectively.
With respect to investments, custodial credit risk generally applies only to direct investments in
marketable securities. Custodial credit risk does not apply to a local government's indirect investment
in securities through the use of mutual funds or government investment pools, including LAIF.
Pursuant to the agreement with financial institutions where certificates of deposit are held, the
securities pledged are consistent with the collateral as noted in the previous paragraph held by the
financial institutions custodian but not in the City’s name.
Investment in investment pools
The City is a voluntary participant in LAIF which is regulated by the California Government Code
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.
LAIF is a governmental investment pool managed and directed by the California State Treasurer and
is not registered with the Securities and Exchange Commission. An oversight committee comprised of
California State officials and various participants provide oversight to the management of the fund.
The daily operations and responsibilities of LAIF fall under the auspices of the State Treasurer's
office. The City is a voluntary participant in the investment pool.
PACKET PAGE: 144
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 2: Cash and investments (continued)
Fair value of investments
GASB Statement No. 31 establishes fair value standards for investments; accordingly, the City reports
its investments at fair value, or amortized cost in the balance sheet. All investment income, including
changes in the fair value of investments, is recognized, as revenue in the operating statement.
Note 3: Capital assets
Capital asset activity for the year ended June 30, 2013 was as follows:
Balance at Balance at
June 30, 2012 Additions Deletions June 30, 2013
Governmental Activities:
Capital Assets Not Being Depreciated:
Land 4,230,760$ -$ -$ 4,230,760$
Construction in progress 10,542,175 2,704,712 (755,884) 12,491,003
Total Capital Assets Not
Being Depreciated 14,772,935 2,704,712 (755,884) 16,721,763
Capital Assets Being Depreciated:
Building and system 7,348,298 - - 7,348,298
Machinery and equipment 5,282,889 79,244 (345,015) 5,017,118
Improvements other than building 2,951,157 8,933 - 2,960,090
Infrastructure 159,453,320 1,100,636 - 160,553,956
Total Capital Assets
Being Depreciated 175,035,664 1,188,813 (345,015) 175,879,462
Less Accumulated Depreciation For:
Building and system (1,440,703) (176,999) - (1,617,702)
Machinery and equipment (4,376,540) (391,706) 301,941 (4,466,305)
Improvements other than building (1,296,694) (106,553) - (1,403,247)
Infrastructure (71,366,739) (4,398,340) - (75,765,079)
Total Accumulated Depreciation (78,480,676) (5,073,598) 301,941 (83,252,333)
Total Capital Assets Being Depreciated, Net 96,554,988 (3,884,785) (43,074) 92,627,129
Governmental Activities Capital Assets, Net 111,327,923$ (1,180,073)$ (798,958)$ 109,348,892$
PACKET PAGE: 145
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 3: Capital assets (continued)
Balance at Balance at
Business-Type Activities: June 30, 2012 Additions Deletions June 30, 2013
Capital Assets Not Being Depreciated
Land 55,222$ -$ -$ 55,222$
Construction in progress 1,553,107 24,068 - 1,577,175
Total Capital Assets Not
Being Depreciated 1,608,329 24,068 - 1,632,397
Capital Assets Being Depreciated:
Building and system 6,778,790 - - 6,778,790
Machinery and equipment 2,819,664 65,914 (25,106) 2,860,472
Improvements other than building 6,445,075 168,593 - 6,613,668
Total Capital Assets
Being Depreciated 16,043,529 234,507 (25,106) 16,252,930
Less Accumulated Depreciation For:
Building and system (2,124,140) (136,475) - (2,260,615)
Machinery and equipment (2,060,070) (166,961) 25,106 (2,201,925)
Improvements other than building (1,823,054) (261,319) - (2,084,373)
Total Accumulated Depreciation (6,007,264) (564,755) 25,106 (6,546,913)
Total Capital Assets Being Depreciated, Net 10,036,265 (330,248) - 9,706,017
Business-Type Activities Capital Assets, Net 11,644,594$ (306,180)$ -$ 11,338,414$
Depreciation expense was charged to functions/programs of the primary government as follows:
Governmental Activities:
General government 231,182$
Public safety 247,664
Public works 4,544,878
Community development 49,874
Total Depreciation Expense - Governmental Activities 5,073,598$
Business-Type Activities:
Water 414,169$
Sewer 150,586
Total Depreciation Expense - Business-Type Activities 564,755$
PACKET PAGE: 146
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 4: Other assets
Notes receivable Balance at
June 30, 2013
a) In FY 2006-2007 and FY 2007-2008 the Agency made a loan to a developer
for a low and moderate income housing project. Amounts provided to the
developer were for $1,238,225 and $1,061,775 in fiscal years 2007 and
2008, respectively. There are no annual set or structured payments. The
promissory note will accrue interest at the rate of one percent per year
simple interest and shall be repaid from the cash flow of the project and shall
be due and payable by the expiration or termination of the affordability
covenants which is 55 years from the completion of the project. The project
was completed on October 2, 2008. Pursuant to AB XI 26, the
Redevelopment Agency of the City of San Jacinto was dissolved and this
asset was transferred to the City's Successor Housing Authority Fund.
$ 2,300,000
b) The Agency operates various loan and grant programs to assist residents
who meet certain qualifications for the purpose of providing home
rehabilitation and home ownership assistance to low and moderate income
households. The loans are secured by a deed of trust and no monthly
payments are required. At the end of the 45-year term, the loans are forgiven
unless the following occurs during the grant term: 1) property is sold or
transferred or 2) property is no longer owner-occupied, at which time full
repayment would be required. Pursuant to AB XI 26, the Redevelopment
Agency of the City of San Jacinto was dissolved and this asset was
transferred to the City's Successor Housing Authority Fund. Additionally, the
asset has been formally recognized on the balance sheet, whereas in the
past it has only been referenced by note disclosure.
1,300,839
Loans total
Accrued interest on note receivable - a) above
3,600,839
106,324
Loans receivable total $ 3,707,163
Note 5: Retirement 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 adjustments, and death benefits to plan members and
beneficiaries. PERS acts as a common investment and administrative agent for participating public
entities within the State of California. Benefit provisions and all other requirements are established by
State statute and City ordinance. Copies of PERS’ annual financial report may be obtained from their
executive office: 400 “P” Street, Sacramento, California 95814.
PACKET PAGE: 147
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 5: Retirement plan (continued)
Funding policy
The City of San Jacinto is required to contribute the actuarially determined remaining amounts
necessary to fund the benefits for its members. The actuarial methods and assumptions used are
those adopted by the CalPERS Board of Administration. The contractually required employer
contribution rate for fiscal year 2012 - 2013 was 21.636% for non-safety which was determined by an
actuarial valuation of the plan as of June 30, 2010. The contribution requirements of the plan
members are established by State statute and the employer contribution rate is established and may
be amended by CalPERS. Benefit provisions and all other requirements are established by state
statute and town contract with employee bargaining groups.
Annual pension cost
For 2013, the City’s annual pension cost of $700,265 for PERS was equal to the City’s required and
actual contributions. The required contribution was determined as part of the June 30, 2010, actuarial
valuation using the entry age normal actuarial cost method.
Annual Pension Cost
Fiscal Year (Employer Contribution) Percentage of Net Pension
Ending (in thousands) APC Contributed Obligation
06/30/2010 667$ 100% -$
06/30/2011 665$ 100% -$
06/30/2012 700$ 100% -$
Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of entry
into CalPERS Risk Pool. Subsequent plan amendments are amortized as a level percentage of pay
over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized
over a rolling period, which results in an amortization of 10 percent of unamortized gains and losses
each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the
amortization payment on the total unfunded liability may not be lower than the payment calculated
over a 30 year amortization period. Each year, a single amortization base is created, using the net
period for the multiple bases.
PACKET PAGE: 148
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 5: Retirement plan (continued)
A summary of principle assumptions and methods used to determine the annual required contribution
is shown below:
Valuation date June 30, 2010
Actuarial cost method Entry Age Actuarial Cost Method
Amortization method Level Percent of Payroll
Average remaining period 19 years of the Valuation Date
Asset valuation method 15 years Smoothed Market
Actuarial assumptions:
Investment rate of return 7.75% (net of administrative expenses)
Projected salary increases 3.55% to 14.45% depending on age, service and
type of employment
Inflation 3.00%
Payroll growth 3.25%
Individual salary growth A merit scale varying by duration of employment
coupled with an assumed annual inflation
component of 3.00% and an annual production
growth of .25%.
New risk pool and future contributions
At the time of joining a risk pool (valuation of June 30, 2003), a side fund was created to account for
the difference between the funded status of the pool and funded status of the City's plan.
The side fund will be credited, on an annual basis, with the actuarial investment return assumption.
This assumption is currently 7.75%. The negative Side Fund will cause the City’s required employer
contribution rate to be increased by the Amortization of the Side Fund. In the absence of subsequent
contract amendments or funding changes, the Side Fund will disappear at the end of the amortization
period. The amortization period remaining as of June 30, 2013, was 7 years for the Miscellaneous
Plan.
PACKET PAGE: 149
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 6: Long-term debt
A description of long-term debt outstanding as of June 30, 2013 follows:
a. Special assessment debt with government commitment
$1,415,000 Assessment District 87-1 Bonds, Series 1987 A, dated March 19, 1987, were issued
to finance certain improvements pursuant to the Improvement Bond Act of 1915. The payment of
the bonds is secured by assessment liens upon certain lands as described in said assessment
and are not direct liabilities of the City. The City may, however, from time to time, when due and
delinquent, advance available funds to pay the amount of any succeeding installment of the
assessment on said land and the interest thereon on the 1915 bonds. Prior to the fiscal year
ended June 30, 1995, the City of San Jacinto advanced funds for said delinquencies. During the
fiscal year ended June 30, 1995 the City did not advance further amounts to the reserve fund and
had commenced foreclosure proceedings. The City has since entered judicial foreclosure and the
related property has been placed for sale. A reserve fund of $141,500 was established out of the
original bond proceeds. At June 30, 2013 the reserve fund balance was zero due to the default of
property owners.
In accordance with GASB Statement No. 6 “Special Assessments,” the special assessment debt
has been reflected in the accompanying financial statements at June 30, 2013 as “Special
Assessment Debt with Government Commitment” in the amount of $1,633,491. This includes an
amount of matured unpaid principal of $1,125,000. Matured unpaid interest on these bonds is
also reported for interest payments due but not paid as of June 30, 2013, in the amount of
$508,491. These balances have been outstanding for several years and as such, the City has
recorded the corresponding taxes receivable of $1,633,491 in addition to unearned revenue in the
same amount on the Statement of Net Positions and Governmental Funds Balance Sheet.
PACKET PAGE: 150
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 6: Long-term debt (continued)
b. Revenue bonds
1997 Revenue Bonds
On August 1, 1997, the San Jacinto Financing Authority issued $4,500,000 of Revenue Bonds,
Series 1997, to finance the acquisition and construction of improvements to the water enterprise
system of the City of San Jacinto. The Bonds consist of $1,575,000 of serial bonds and
$2,925,000 of term bonds. The serial bonds accrue interest at rates between 3.9 percent and 4.9
percent and the principal amounts mature between October 1, 1998 and October 1, 2007 in
amounts ranging from $130,000 to $190,000. The term bonds accrue interest at 5.5 percent and
mature October 1, 2018. The bonds and interest are payable from installment payments
established by an installment purchase agreement established pursuant to the trust indenture.
The City’s obligation to make installment payments and interest is a special obligation of the City
payable solely from net revenues of the City’s Water Enterprise. The outstanding principal
balance at June 30, 2013 is $1,805,000.
2002 Refunding Revenue Bonds
On March 15, 2002, the San Jacinto Financing Authority issued $2,730,000 of Refunding
Revenue Bonds, Series 2002, to prepay the 1993 Certificates of Participation of the City of San
Jacinto and a lease obligation of the City of San Jacinto, each of which financed improvements to
the City's Water Enterprise. The Bonds consist of $1,695,000 of serial bonds and $1,035,000 of
term bonds. The serial bonds accrue interest at rates between 1.75 percent and 4.75 percent and
the principal amounts mature between April 1, 2003 and April 1, 2014 in amounts ranging from
$75,000 to $190,000. The term bonds accrue interest at 5.10 percent and mature April 1, 2023.
The bonds and interest are payable from installment payments established by an amended and
restated installment purchase agreement established pursuant to the trust indenture. The City's
obligation to make installment payments and interest is a special obligation of the City payable
solely from net revenues of the City's Water Enterprise. The outstanding principal balance at June
30, 2013 is $1,125,000. The payment of installment purchase payments is on parity with the
City's obligation to pay debt service on the 1997 Revenue Bonds.
PACKET PAGE: 151
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 6: Long-term debt (continued)
The annual debt service requirements to maturity for the revenue bonds payable are as follows:
Fiscal Year Ending
June 30, Principal Interest Principal Interest
2014 90,000$ 57,060$ 260,000$ 92,125$
2015 90,000 52,785 275,000 77,413
2016 100,000 48,195 290,000 61,875
2017 105,000 43,095 310,000 45,375
2018 105,000 37,740 670,000 37,400
2019-2022 495,000 93,330 - -
2023 140,000 7,140 - -
Totals 1,125,000$ 339,345$ 1,805,000$ 314,188$
2002 Refunding Revenue Bonds 1997 Revenue Bonds
The City has pledged Water Enterprise revenues to repay the 1997 $4.5M Revenue Bonds and
the 2002 $2.7M Refunding Revenue Bonds. Total principal and interest remaining on the bonds
are $2,119,188 and $1,464,345 payable through 2019 and 2023, respectively. For the current
year, principal and interest paid was $356,150 for the 1997 Bonds and $146,098 for the 2002
Bonds, and total water enterprise operating revenues received by the City totaled $3,400,416.
c. Unfunded pension liability - Inactive Safety Plan
On June 1, 2004, the City disbanded its police department and subsequently contracted with the
Riverside County Sheriff’s Department for policing services. At that time, the City’s previously
established pension fund through the California Public Employee’s Retirement System (CalPERS)
became inactive.
At the time of joining the mandatory new risk pool, a side fund was created to account for the
difference between the funded status of the pool and the funded status of the plan (see Note 5 for
additional details on the new risk pool). The balance of the side fund for the inactive Safety Plan
was $2,798,322 at the time the police department disbanded in June 2004. As such, the City was
obligated to pay the remaining balance over a period of 14 years. The balance at June 30, 2013 is
$1,756,600 and is scheduled for repayment as follows:
Fiscal year Total
ending June 30, Principal Interest Payment
2014 198,378$ 123,882$ 322,260$
2015 213,752 108,508 322,260
2016 230,318 91,942 322,260
2017 248,168 74,092 322,260
2018 267,401 54,859 322,260
2019-2020 598,583 45,937 644,520
Total 1,756,600$ 499,220$ 2,255,820$
PACKET PAGE: 152
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 6: Long-term debt (continued)
d. Capital lease payable
On July 20, 2007 the City entered into two lease agreements for the purchase of 1) a Vactor Truck
and a Street Sweeper and 2) Various Trucks in the amount of $457,000 and $318,000,
respectively, and with an accumulated depreciation to date of $413,297 and $242,909,
respectively. In January 2013, the Street Sweeper was sold, the lease was paid off, and $249,926
and $212,437 of vehicle cost and depreciation, respectively, was removed. Principal and interest
payments are paid semi-annually on January 20th and July 20th. The annual interest rates
applicable to the leases are 4.53 percent and 4.46 percent respectively. The combined
outstanding balance at June 30, 2013 for both leases is $49,163 and is scheduled for repayment
as follows:
Fiscal year Total
ending June 30, Principal Interest Payment
2014 32,407$ 1,864$ 34,271$
2015 16,756 380 17,136
Total 49,163$ 2,244$ 51,407$
e. Changes in long-term liabilities
Changes in long-term liabilities during the year ended June 30, 2013 were as follows:
Balance at Balance at Due within
June 30, 2012 Additions Deletions June 30, 2013 one year
Governmental Activities
Special assessment debt with
governmental commitment 1,125,000$ -$ -$ 1,125,000$ 1,125,000$
Matured unpaid interest on special
assessment debt with government
commitment 508,491 - - 508,491 -
Loans Payable:
Unfunded pension liability-
inactive safety plan 1,940,710 - (184,110) 1,756,600 198,378
Lease payable 214,926 - (165,763) 49,163 32,407
Claims and judgment 141,561 133,258 - 274,819 -
Compensated absences 193,570 3,937 - 197,507 -
Governmental Activities
Long-Term Liabilities 4,124,258$ 137,195$ (349,873)$ 3,911,580$ 1,355,785$
Business-Type Activities
Bonds Payable:
1997 Revenue Bonds 2,055,000$ -$ (250,000)$ 1,805,000$ 260,000$
2002 Revenue Bonds 1,210,000 - (85,000) 1,125,000 90,000
Business-Type Activities
Long-Term Liabilities 3,265,000$ -$ (335,000)$ 2,930,000$ 350,000$
PACKET PAGE: 153
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 6: Long-term debt (continued)
f. Debt issued without government commitment
Refinancing of $26,000,000 Community Facilities District No. 2 Special Tax Bonds
$26,000,000 of special tax bonds were issued on May 1, 1989 (1989 issue) to finance the
acquisition and construction of certain "backbone" infrastructure facilities necessary for further
development in Community Facilities District No. 2 (CFD No. 2). The 1989 issue was secured by
special taxes levied by the City on property within the boundaries of CFD No. 2, and was not a
debt of the City of San Jacinto. Due to the large number of delinquent, undeveloped parcels in the
CFD No. 2, CFD No. 2 was unable to meet its debt obligations since 1997 and therefore, there
was a default with respect to the payment of the principal and interest on the 1989 issue.
In September 2002, a Memorandum of Understanding (MOU) was entered into with the majority
bondholder to set forth numerous objectives, but primarily focused on refinancing the 1989 Issue,
keeping the tax exempt status of any new bonds, foreclosing on the delinquent property owners,
protecting current property owners, as well as the minority bondholders. As a result, a number of
complex interrelated actions have occurred as follows:
1. On or about September 10, 2002; the City foreclosed on certain delinquent, undeveloped
parcels in CFD No. 2 using a credit bid procedure and caused the transfer of the parcels to a
land owner capable of developing the parcels for residential purposes, formed CFD No. 2002-
1 on the foreclosed parcels and established a new Rate and Method of Apportionment (RMA)
for CFD 2002-1, and authorized bonded indebtedness to repay new bonds to be issued by
CFD No. 2002-1 in order to eliminate the lien of the CFD No. 2 special tax on the foreclosed
parcels.
2. On October 10, 2002, $9,360,000 CFD No. 2 City of San Jacinto Special Tax Refunding
Bonds, 2002, Series A (the “A Bonds”), were issued for the purpose of advance refunding in
part and current refunding in part a portion of the outstanding 1989 issue and to fund a bond
reserve fund. These bonds were sold to the investing public. The principal outstanding at June
30, 2013 is $2,050,000.
3. Concurrently, $18,267,762 CFD No. 2 City of San Jacinto Special Tax Refunding Bonds,
Subordinate Series B (the “B Bonds”), were issued for the purpose of redeeming the balance
of the 1989 issue on a current basis. The Bonds were delivered to the majority bond owner in
exchange for the 1989 issue that was not prepaid by the A Bonds. The principal outstanding at
June 30, 2013 is $88,869.
PACKET PAGE: 154
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 6: Long-term debt (continued)
h. Debt issued without government commitment (continued)
4. Concurrently, $17,841,416 CFD No. 2002-1 City of San Jacinto Special Tax Bonds, 2002
Series A (the “2002 Bonds”), were issued, which, pursuant to a bond exchange agreement
with the majority bondholder of the "1989 issue," would be delivered by the City to the San
Jacinto Financing Authority in exchange for the B Bonds, as further described below. Upon the
exchange all of the B Bonds, except the amount of $138,627, were cancelled and the lien of
special taxes of CFD No. 2 on the foreclosed parcels was also cancelled. This issue is
currently owned by the San Jacinto Financing Authority. These bonds are intended to be
resold only to sophisticated investors. The outstanding balance at June 30, 2013 is
$19,344,999.
5. Concurrently, $17,841,416 San Jacinto Financing Authority 2002 Local Agency Revenue
Bonds, Series A (the “SJFA Bonds”), were issued for the purpose of exchanging the SJFA
Bonds with the B Bonds owned by the majority bond owner and then concurrently exchanging
the B Bonds (except the amount of $138,627) for the 2002-1 Bonds, as described above. The
SJFA owns the 2002-1 Bonds and the outstanding B Bonds. This is a private placement issue.
The balance at June 30, 2013 is $20,059,817.
All bonds represent special limited obligations of the City, payable solely from special taxes levied
within CFD No. 2 or CFD No. 2002-1, as applicable, and are not an obligation of the General Fund
of the City of San Jacinto. The City has covenanted to annually levy the special tax and, in the
event of any delinquency in payment to the City of the special tax, the City may order action to
foreclose on any property liens.
Note 7: Short-term/long-term interfund borrowings
Interfund transactions - Due to/due from other funds
Individual fund interfund receivable and payable balances at June 30, 2013 were as follows:
Receivable Fund
General
Payable Fund Fund
LLPD #2 5,939$
Non-Major Governmental Funds 1,838,232
Total 1,844,171$
The interfund payables represent temporary loans to cover negative cash balances.
PACKET PAGE: 155
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 7: Short-term/long-term interfund borrowings (continued)
Interfund transactions - Advances
Individual fund interfund advances to and from balances at June 30, 2013 were as follows:
Non-Major Enterprise - Enterprise -
General Governmental Water Sewer
Payable Fund Fund Funds Fund Fund Totals
City Capital Projects Fund 186,644$ 8,274,108$ 211,921$ 204,954$ 8,877,627$
Community Facilities District 2003 Fund 3,240,405 - - - 3,240,405
Enterprise - Water Fund 86,398 - - 318,983 405,381
Total 3,513,447$ 8,274,108$ 211,921$ 523,937$ 12,523,413$
Receivable Fund
> Advances between the City Capital Projects Fund and other City funds are for cash advanced
to the City Capital Projects Fund for expected project costs. Also, see Note 1.
> The General Fund has advanced cash to the Community Facilities District 2003 Fund to cover
costs.
> Advances to the Water Fund from the General Fund and the Sewer Fund represent loans from
those respective funds to the Water Fund.
Note 8: Transfers in and out
Individual fund transfers in and transfers out activity as of June 30, 2013 were as follows:
Non-Major Internal Solid
General Governmental Service Waste
Transfers-In Fund Funds Funds Fund Totals
General Fund -$ 455,207$ 299,679$ 231,183$ 986,069$
City Capital Projects Fund 318,278 2,712,095 - - 3,030,373
LLPD #2 17,238 - - - 17,238
Non-Major Governmental Funds 142,431 52,132 - - 194,563
Internal Service Funds 56,800 - - - 56,800
Total 534,747$ 3,219,434$ 299,679$ 231,183$ 4,285,043$
Transfers-Out
> Transfers to the General Fund from non-major governmental funds represent reimbursement
for costs of public safety services and a capital project, and from Internal Service funds for
equipment replacement reserve.
> Transfers to the City Capital Projects Fund from all other City funds are to fund various capital
projects of the City. Also, see Note 1.
PACKET PAGE: 156
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 8: Transfers in and out (continued)
> Transfers to the LLPD #2 Fund from the General Fund are for the payment of utility costs for a
specific park, as agreed upon.
> Transfers to non-major governmental funds from the General Fund is for operating transfers to
cover ongoing negative cash balances, and from non-major governmental funds for
reimbursement of capital project costs.
> Transfers to Internal Service funds from the General Fund are to reimburse costs of
replacement equipment.
Note 9: Deferred revenue
The following is a summary of amounts deferred at the Governmental Funds Balance Sheet as of
June 30, 2013:
General Fund 566,575$ (b)
Successor Housing Authority 4,151,802 (c)
Non-Major Governmental Funds
SB 621 Gaming Impacts Grants 407,131 (b)
Vandalism & Graffiti Reward Fund 53,097 (b)
Assessment District 87-1 1,633,491 (a)
2,093,719
Total 6,812,096$
(a) As discussed in Note 6, this amount represents uncollected special assessments which have
been outstanding for several years and is the reason for the deferral of these amounts on the
Statement of Net Position.
(b) These amounts are deferred at the fund level as they have not been either earned or collected
within the City's period of availability.
(c) As discussed in Note 4, this amount is comprised of notes receivable plus accrued interest
from a developer.
PACKET PAGE: 157
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
IV. OTHER DISCLOSURES
Note 10: Risk management
The City adopted a self-insured workers’ compensation program which is administered by a service
agent. The City is self-insured for the first $250,000 on each claim. Insurance coverage in excess of
the self-insured amount is provided by Public Entity Risk Management Authority (PERMA) up to
statutory limits for workers’ compensation.
Effective July 1, 2002, the City elected to reduce self-insured liability claim coverage from $125,000 to
$50,000 on each general liability claim against the City. The Insurance coverage in excess of the self-
insured amount is provided by PERMA up to a limit of $50,000,000.
Claims, expenditures and liabilities are reported when it is probable that a loss has occurred and the
amount of that loss can be reasonably estimated. These losses include an estimate of claims that
have been incurred but not reported. At June 30, 2013, the amount of these liabilities was $274,819.
This amount represents an estimate of $247,337 for reported claims through June 30, 2013 and
$27,482 of estimated incurred but not reported claims. These claims are recorded as claims payable
in the Workers’ Compensation Fund and Liability Insurance Fund. This liability is the City’s best
estimate based on available information. Changes in the reported liability are as follows:
Change In
Liability at Claim Liability at
Year Beginning of Year Payable End of Year
2010-2011 341,870$ 7,778$ 349,648$
2011-2012 349,648 (208,087) 141,561
2012-2013 141,561 133,258 274,819
Effective July 1, 1986 the City became a member of PERMA, a public entity risk pool, currently
operating as a common risk management and insurance program for 17 California cities and 8
Special District/Agencies. The City pays an annual premium to the pool for its excess general liability
insurance coverage. The agreement for formation of PERMA provides that the pool will be self-
sustaining through member premiums. The City continues to carry commercial companies for all
other risks of loss, including property insurance, earthquake and flood, auto physical damage
insurance and TULIP/special events insurance.
PERMA has published its own financial report for the year ended June 30, 2013, which can be
obtained from Public Entity Risk Management Authority, 77-670 Springfield Land, Suite 1A, Palm
Desert, CA 92211.
PACKET PAGE: 158
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 11: Commitments and contingencies
a. Construction commitments
The City has entered into various commitments for construction and/or capital projects. As of June
30, 2013, the City had outstanding contracts commitments of $722,804.
b. Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures
which may be disallowed by the grantor cannot be determined at this time although the City
expects such amounts, if any, to be immaterial.
c. Other
The City is involved as a defendant in various legal proceedings. While it is not feasible to predict
or determine the outcome in these cases, it is the opinion of the City that the outcome of the
majority of these cases will have no material adverse effect on the financial position of the City.
Note 12: Fund balance reservations/designations
The City’s Government Fund balances are detailed below:
City Community Successor Non-Major Total
Capital Facilities Housing Governmental Governmental
General Projects District 2003 Authority LLPD #2 Funds Funds
Nonspendable:
Prepaids 116,326$ -$ -$ -$ -$ -$ 116,326$
Advances receivable 3,513,447 - - - - 8,274,108 11,787,555
Land held for resale - - - 292,859 - - 292,859
Total Nonspendable 3,629,773 - - 292,859 - 8,274,108 12,196,740
Restricted:
Lighting and landscape - - - - 7,662,767 - 7,662,767
Other government restrictions - - - - - 6,473,612 6,473,612
Total Restricted - - - - 7,662,767 6,473,612 14,136,379
Assigned: - - - - - 1,133,344 1,133,344
Unassigned: 16,634,234 - (3,691,785) - - (1,616,830) 11,325,619
Total Fund Balances 20,264,007$ -$ (3,691,785)$ 292,859$ 7,662,767$ 14,264,234$ 38,792,082$
The City has established a minimum fund balance policy for the General Fund Contingency Reserve.
The City Council stipulates that the Contingency Reserve must be a minimum of 15 percent of the
upcoming fiscal year's General Fund annual budgeted operating expenditures. At fiscal year-end the
Reserve for Contingency balance was $3,355,635, 19.38 percent of fiscal year June 30, 2014
budgeted General Fund operating expenditures. This reserve has been reported as unassigned in the
General Fund.
PACKET PAGE: 159
AGENDA ITEM 5.1
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City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 13: Dissolution of California redevelopment agencies
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (Bill) that provides
for the dissolution of all redevelopment agencies in the State of California. Most cities in California had
established a redevelopment agency that was included in the reporting entity of the City as a blended
component unit (since the City council, in many cases, also served as the governing board for those
agencies).
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on
December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased
to operate as a legal entity as of February 1, 2012.
In accordance with the provisions of ABX 1 26 (Bill) and the California Supreme Court’s decision to
uphold the Bill, the obligations of the former redevelopment agency became vested with the funds
established for the successor agency upon the date of dissolution, February 1, 2012. Former tax
increment revenues pledged to fund the debts of the former redevelopment agency will be distributed
to the Successor Agency subject to the reapportionment of such revenues as provided by the Bill.
The debt of the Successor Agency as of June 30, 2013 is as follows:
Balance
transferred from
Redevelopment Balance at Due within
Agency Additions Deletions June 30, 2013 one year
Successor Agency
Loans Payable:
EMWD 21,591$ -$ (1,270)$ 20,321$ 1,270$
Bonds Payable:
2005 Tax Allocation Bonds 8,230,000 - (220,000) 8,010,000 230,000
Less deferred loss on refunding (20,277) - 1,763 (18,514) (1,763)
Total long-term liabilities 8,231,314$ -$ (219,507)$ 8,011,807$ 229,507$
The annual debt service requirements to maturity for the loan payable are as follows:
Fiscal year
ending June 30, EMWD Loan
2014 1,270$
2015 1,270
2016 1,270
2017 1,270
2018 1,270
2019-2022 5,080
2023-2027 6,350
2028-2029 2,541
Totals 20,321$
PACKET PAGE: 160
AGENDA ITEM 5.1
-64-
City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 13: Dissolution of California redevelopment agencies (continued)
Future debt service requirements for the bonds payable are as follows:
Fiscal Year Ending
June 30, Principal Interest
2014 230,000$ 349,890$
2015 235,000 341,635
2016 245,000 332,872
2017 255,000 323,495
2018 265,000 313,483
2019-2022 1,170,000 1,135,473
2023-2027 1,780,000 1,091,400
2028-2032 2,225,000 634,225
2033-2035 1,605,000 112,745
Totals 8,010,000$ 4,635,218$
2005 Tax Allocation Bonds
Note 14: Risks and uncertainties
Grants
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the
applicable funds. The amount, if any, of expenditures that may be disallowed by the grantor cannot
be determined at this time, although the government expects such amounts, if any, to be immaterial.
Successor Agency
Deductions (expenses) incurred by the Successor Agency for the year ended June 30, 2013 (and
subsequent years in which the Successor Agency is in operation) are subject to review by various
State agencies and the County in which the Successor Agency resides. If any expenses incurred by
the Successor Agency are disallowed by the State agencies or County, the City, acting as the
Successor Agency could be liable for the repayment of the disallowed costs from either its own funds
or by the State withholding remittances normally paid to the City. The amount, if any, of expenses
that may be disallowed by the State agencies or County cannot be determined at this time, although
the Successor Agency expects such amounts, if any, to be immaterial.
PACKET PAGE: 161
AGENDA ITEM 5.1
-65-
City of San Jacinto
Notes to the Basic Financial Statements
June 30, 2013
Note 15: Subsequent event
In August 2013, the City signed an installment sale agreement with Zions Bank in the amount of
$3,084,793. The amount was to be used to refinance the outstanding 1997 Water Revenue Bonds
and 2002 Water Revenue Bonds. In October 2013, the City refinanced the outstanding 1997 Water
Revenue Bonds and 2002 Water Revenue Bonds in the amounts of $1,805,000 and $1,125,000,
respectively. Interest was also paid in the amounts of $49,638 and $28,530, respectively. There was
an optional redemption fee of $5,625 for the 2002 bonds, but nothing for the 1997 bonds.
PACKET PAGE: 162
AGENDA ITEM 5.1
Required Supplementary Information
PACKET PAGE: 163
AGENDA ITEM 5.1
-66-
Required Supplementary Information
City of San Jacinto
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2013
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Taxes 5,634,809$ 5,634,809$ 6,554,521$ 919,712$
Licenses and permits 383,800 383,800 553,816 170,016
Fines and forfeitures 350,100 350,100 409,323 59,223
Intergovernmental 2,734,739 2,734,739 2,782,361 47,622
Charges for services 247,200 247,200 216,179 (31,021)
Investment earnings 231,200 231,200 (31,969) (263,169)
Other 2,940,856 2,940,856 3,442,349 501,493
Total Revenues 12,522,704 12,522,704 13,926,580 1,403,876
EXPENDITURES
Current:
General government 2,549,112 2,558,886 2,679,394 (120,508)
Public safety 9,706,039 9,680,929 9,382,113 298,816
Public works 332,368 332,368 253,428 78,940
Community development 3,079,613 3,088,444 3,407,153 (318,709)
Culture and leisure 223,619 223,619 265,268 (41,649)
Debt service:
Principal 66,243 66,243 66,243 -
Interest 4,087 4,087 4,087 -
Capital outlay - - 22,494 (22,494)
Total Expenditures 15,961,081 15,954,576 16,080,180 (125,604)
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,438,377) (3,431,872) (2,153,600) 1,278,272
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property - - 19,870 19,870
Transfers in 723,633 723,633 986,069 262,436
Transfers out (1,962,710) (1,230,576) (534,747) 695,829
Total Other Financing Sources (Uses) (1,239,077) (506,943) 471,192 978,135
Net Change in Fund Balance (4,677,454) (3,938,815) (1,682,408) 2,256,407
Fund Balance, Beginning of Year 21,946,415 21,946,415 21,946,415 -
Fund Balance, End of Year 17,268,961$ 18,007,600$ 20,264,007$ 2,256,407$
Budgeted Amounts
PACKET PAGE: 164
AGENDA ITEM 5.1
-67-
Required Supplementary Information
City of San Jacinto
Budgetary Comparison Schedule - Community Facilities District 2003 Fund
For the Year Ended June 30, 2013
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Assessments 1,750,000$ 1,750,000$ 1,871,184$ 121,184$
Total Revenues 1,750,000 1,750,000 1,871,184 121,184
EXPENDITURES
Current:
General government 29,000 29,000 25,038 3,962
Public safety 2,812,369 2,780,369 2,495,328 285,041
Debt service:
Interest 8,000 8,000 9,453 (1,453)
Total Expenditures 2,849,369 2,817,369 2,529,819 287,550
Net Change in Fund Balance (1,099,369) (1,067,369) (658,635) 408,734
Fund Balance, Beginning of Year (3,033,150) (3,033,150) (3,033,150) -
Fund Balance, End of Year (4,132,519)$ (4,100,519)$ (3,691,785)$ 408,734$
Budgeted Amounts
PACKET PAGE: 165
AGENDA ITEM 5.1
-68-
Required Supplementary Information
City of San Jacinto
Budgetary Comparison Schedule - LLPD #2 Fund
For the Year Ended June 30, 2013
Actual Variance with
Original Final Amounts Final Budget
REVENUES
Assessments 1,779,509$ 1,779,509$ 2,102,258$ 322,749$
Development fees 14,024 14,024 21,382 7,358
Investment earnings 57,050 57,050 81,079 24,029
Other - - 49,386 49,386
Total Revenues 1,850,583 1,850,583 2,254,105 403,522
EXPENDITURES
Current:
Community development 5,166,232 5,166,232 2,925,481 2,240,751
Capital outlay - - 29,303 (29,303)
Total Expenditures 5,166,232 5,166,232 2,954,784 2,211,448
Excess (Deficiency) of Revenues
Over (Under) Expenditures (3,315,649) (3,315,649) (700,679) 2,614,970
OTHER FINANCING SOURCES (USES)
Transfers in 16,563 16,563 17,238 675
Transfers out - - - -
Total Other Financing Sources (Uses) 16,563 16,563 17,238 675
Net Change in Fund Balance (3,299,086) (3,299,086) (683,441) 2,615,645
Fund Balance, Beginning of Year 8,346,208 8,346,208 8,346,208 -
Fund Balance, End of Year 5,047,122$ 5,047,122$ 7,662,767$ 2,615,645$
Budgeted Amounts
PACKET PAGE: 166
AGENDA ITEM 5.1
Non-Major Governmental Funds
PACKET PAGE: 167
AGENDA ITEM 5.1
-69-
City of San Jacinto
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2013
Community
Facilities
Gas Tax Measure A Traffic Safety District #2
ASSETS
Cash and investments 333,184$ 634,203$ 72,379$ -$
Receivables:
Accounts - - - -
Taxes and assessments - - - -
Due from other governments 25,248 116,304 15,247 -
Advances receivable 473,941 2,194,234 199,506 -
Total Assets 832,373$ 2,944,741$ 287,132$ -$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 7,050$ -$
Accrued payroll - - - -
Due to other funds - - - -
Deferred revenue - - - -
Total Liabilities - - 7,050 -
Fund Balance:
Nonspendable 473,941 2,194,234 199,506 -
Restricted 358,432 750,507 80,576 -
Unassigned - - - -
Total Fund Balances 832,373 2,944,741 280,082 -
Total Liabilities and Fund Balances 832,373$ 2,944,741$ 287,132$ -$
Special Revenue Funds
PACKET PAGE: 168
AGENDA ITEM 5.1
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CFD #2010-1
Administrative Parkway Public Safety
Fund LLPD #1 Development CSA 152 Bus Shelter Sales Tax
-$ 30,018$ 48,746$ -$ 403$ -$
- - - - - -
- 13,255 - - - -
- - - - - 17,221
- - 27,975 - - -
-$ 43,273$ 76,721$ -$ 403$ 17,221$
-$ 43,273 -$ 184$ 7$ -$
- - - 1,825 396 -
- - - 64,683 - -
- - - - - -
- 43,273 - 66,692 403 -
- - 27,975 - - -
- - 48,746 - - 17,221
- - - (66,692) - -
- - 76,721 (66,692) - 17,221
-$ 43,273$ 76,721$ -$ 403$ 17,221$
Special Revenue Funds
PACKET PAGE: 169
AGENDA ITEM 5.1
-71-
Continued
City of San Jacinto
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2013
SB 621
AB3229 Gaming
Air Quality COPS Fire Impact
Improvement Program Mitigation Grants
ASSETS
Cash and investments 147,102$ 200,763$ 569,649$ 340,177$
Receivables:
Accounts - - - -
Taxes and assessments - - - -
Due from other governments 14,152 - - -
Advances receivable - - - 46,088
Total Assets 161,254$ 200,763$ 569,649$ 386,265$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ 777$ -$ 13,381$
Accrued payroll - - - -
Due to other funds - - - -
Deferred revenue - - - 407,131
Total Liabilities - 777 - 420,512
Fund Balance:
Nonspendable - - - 46,088
Restricted 161,254 199,986 569,649 -
Unassigned - - - (80,335)
Total Fund Balances 161,254 199,986 569,649 (34,247)
Total Liabilities and Fund Balances 161,254$ 200,763$ 569,649$ 386,265$
Special Revenue Funds
PACKET PAGE: 170
AGENDA ITEM 5.1
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Developer
Special District Asset Assessment Impact
AB1600 Administration Seizure District 2003-01 SB 821 Fees
4,776$ 138,264$ 231,560$ 2,268,134$ -$ 1,613,519$
- 20,000 - - - -
- - - 8,515 - -
- - - - - -
487,620 - - - - 1,250,375
492,396$ 158,264$ 231,560$ 2,276,649$ -$ 2,863,894$
150$ 1,500$ -$ -$ -$ 16,175$
- 4,533 - - - -
- - - - - 1,602
- - - - - -
150 6,033 - - - 17,777
487,620 - - - - 1,250,375
4,626 152,231 231,560 2,276,649 - 1,595,742
- - - - - -
492,246 152,231 231,560 2,276,649 - 2,846,117
492,396$ 158,264$ 231,560$ 2,276,649$ -$ 2,863,894$
Special Revenue Funds
PACKET PAGE: 171
AGENDA ITEM 5.1
-73-
Continued
City of San Jacinto
Combining Balance Sheet
Non-Major Special Revenue Funds
June 30, 2013
Vandalism Total
& Graffiti Special Revenue
Reward CDBG Funds
ASSETS
Cash and investments 25,215$ -$ 6,658,092$
Receivables:
Accounts 54,315 - 74,315
Taxes and assessments - - 21,770
Due from other governments - - 188,172
Advances receivable - - 4,679,739
Total Assets 79,530$ -$ 11,622,088$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ 82,497$
Accrued payroll - - 6,754
Due to other funds - 20,869 87,154
Deferred revenue 53,097 - 460,228
Total Liabilities 53,097 20,869 636,633
Fund Balance:
Nonspendable - - 4,679,739
Restricted 26,433 ‐ 6,473,612
Unassigned - (20,869) (167,896)
Total Fund Balances 26,433 (20,869) 10,985,455
Total Liabilities and Fund Balances 79,530$ -$ 11,622,088$
Special Revenue Funds
PACKET PAGE: 172
AGENDA ITEM 5.1
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PACKET PAGE: 173
AGENDA ITEM 5.1
-74-
City of San Jacinto
Combining Balance Sheet
Non-Major Capital Projects and Debt Service Funds
June 30, 2013
TUMF Capital Underground Flood Traffic
Projects Utility Control Signalization
ASSETS
Cash and investments -$ 968,050$ -$ 6,329$
Receivables:
Accounts - - - -
Taxes and assessments - - - -
Due from other governments 446,272 - 106,994 -
Advances receivable - - 2,799,081 294,839
Total Assets 446,272$ 968,050$ 2,906,075$ 301,168$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable -$ -$ -$ -$
Accrued payroll - - - -
Due to other funds 1,452,199 - - -
Due to other governments - - - -
Deferred revenue - - - -
Total Liabilities 1,452,199 - - -
Fund Balance:
Nonspendable - - 2,799,081 294,839
Restricted - - - -
Assigned ‐ 968,050 106,994 6,329
Unassigned (1,005,927) - - -
Total Fund Balances (1,005,927) 968,050 2,906,075 301,168
Total Liabilities and Fund Balances 446,272$ 968,050$ 2,906,075$ 301,168$
Capital Projects
PACKET PAGE: 174
AGENDA ITEM 5.1
-75-
Capital Projects Debt Service Total
Highway 79 Total Assessment Total Non-Major
Capital Capital Projects District 87-1 Debt Governmental
Projects Funds Debt Service Service Funds
51,971$ 1,026,350$ -$ -$ 7,684,442$
- - - - 74,315
- - 1,633,491 1,633,491 1,655,261
- 553,266 - - 741,438
500,449 3,594,369 - - 8,274,108
552,420$ 5,173,985$ 1,633,491$ 1,633,491$ 18,429,564$
-$ -$ -$ -$ 82,497$
- - - - 6,754
- 1,452,199 298,879 298,879 1,838,232
- - 144,128 144,128 144,128
- - 1,633,491 1,633,491 2,093,719
- 1,452,199 2,076,498 2,076,498 4,165,330
500,449 3,594,369 - - 8,274,108
- - - - 6,473,612
51,971 1,133,344 - - 1,133,344
- (1,005,927) (443,007) (443,007) (1,616,830)
552,420 3,721,786 (443,007) (443,007) 14,264,234
552,420$ 5,173,985$ 1,633,491$ 1,633,491$ 18,429,564$
PACKET PAGE: 175
AGENDA ITEM 5.1
-76-
City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Special Revenue Funds
For the Year Ended June 30, 2013
Community
Facilities
Gas Tax Measure A Traffic Safety District #2
REVENUES
Taxes -$ -$ -$ -$
Assessments - - - -
Fines and forfeitures - - 85,305 -
Development fees - - - -
Intergovernmental 1,034,644 696,259 1 -
Investment earnings - 27,699 2,927 -
Other - - - -
Total Revenues 1,034,644 723,958 88,233 -
EXPENDITURES
Current:
Public safety - - 75,382 -
Public works 786,808 42,580 22,884 -
Community development - - - -
Culture and leisure - - - -
Debt service:
Principal - - - -
Interest - - - -
Capital outlay - - - -
Total Expenditures 786,808 42,580 98,266 -
Excess (Deficiency) of Revenues
Over (Under) Expenditures 247,836 681,378 (10,033) -
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property - - - -
Transfers in - 52,132 - -
Transfers out (26,059) (213,385) (1,602) (12,765)
Total Other Financing Sources (Uses) (26,059) (161,253) (1,602) (12,765)
Net Change in Fund Balances 221,777 520,125 (11,635) (12,765)
Fund Balances, Beginning of Year 610,596 2,424,616 291,717 12,765
Fund Balances, End of Year 832,373$ 2,944,741$ 280,082$ -$
Special Revenue Funds
PACKET PAGE: 176
AGENDA ITEM 5.1
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CFD #2010-1
Administrative Parkway Public Safety
Fund LLPD #1 Development CSA 152 Bus Shelter Sales Tax
-$ -$ -$ -$ -$ 221,602$
- 662,860 - - - -
- - - - - -
- - - - - -
- - - 66,610 - -
- - 1,076 - - 259
- - - - 24,400 -
- 662,860 1,076 66,610 24,400 221,861
- - - - - -
- - - 62,997 - -
- - - - 33,048 -
- 662,860 - - - -
- - - 99,520 - -
- - - 5,899 - -
- - - - - -
- 662,860 - 168,416 33,048 -
- - 1,076 (101,806) (8,648) 221,861
- - - 63,009 - -
13,059 - - 41,920 9,047 -
- - (27,025) - - (220,656)
13,059 - (27,025) 104,929 9,047 (220,656)
13,059 - (25,949) 3,123 399 1,205
(13,059) - 102,670 (69,815) (399) 16,016
-$ -$ 76,721$ (66,692)$ -$ 17,221$
Special Revenue Funds
PACKET PAGE: 177
AGENDA ITEM 5.1
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Continued
City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Special Revenue Funds
For the Year Ended June 30, 2013
SB 621
AB3229 Gaming
Air Quality COPS Fire Impact
Improvement Program Mitigation Grants
REVENUES
Taxes -$ -$ -$ -$
Assessments - - - -
Fines and forfeitures - - - -
Development fees - - 1,740 -
Intergovernmental 54,047 75,000 - 199,011
Investment earnings 1,292 1,429 6,056 3,043
Other - - - -
Total Revenues 55,339 76,429 7,796 202,054
EXPENDITURES
Current:
Public safety - 500 - 2,351
Public works 2,025 - - -
Community development - - - -
Culture and leisure - - - -
Debt service:
Principal - - - -
Interest - - - -
Capital outlay - 1,081 - 31,918
Total Expenditures 2,025 1,581 - 34,269
Excess (Deficiency) of Revenues
Over (Under) Expenditures 53,314 74,848 7,796 167,785
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property - - - -
Transfers in - - - -
Transfers out - - - (200,546)
Total Other Financing Sources (Uses) - - - (200,546)
Net Change in Fund Balances 53,314 74,848 7,796 (32,761)
Fund Balances, Beginning of Year 107,940 125,138 561,853 (1,486)
Fund Balances, End of Year 161,254$ 199,986$ 569,649$ (34,247)$
Special Revenue Funds
PACKET PAGE: 178
AGENDA ITEM 5.1
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Developer
Special District Asset Assessment Impact
AB1600 Administration Seizure District 2003-01 SB 821 Fees
-$ -$ -$ -$ -$ -$
- - - 519,042 - -
- - - - - -
9,881 - - - - -
- - 231,550 - 39,367 -
5,382 1,739 - 20,755 - 33,116
- 297,772 - - - -
15,263 299,511 231,550 539,797 39,367 33,116
- - - - - -
- - - 47,511 - 14,099
7,217 280,002 - - - -
- - - - - 16,176
- - - - - -
- - - - - -
- - - - - 6,250
7,217 280,002 - 47,511 - 36,525
8,046 19,509 231,550 492,286 39,367 (3,409)
- - - - - -
78,405 - - - - -
(85,480) (33,743) - - (39,367) (306,371)
(7,075) (33,743) - - (39,367) (306,371)
971 (14,234) 231,550 492,286 - (309,780)
491,275 166,465 10 1,784,363 - 3,155,897
492,246$ 152,231$ 231,560$ 2,276,649$ -$ 2,846,117$
Special Revenue Funds
PACKET PAGE: 179
AGENDA ITEM 5.1
-80-
Continued
City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Special Revenue Funds
For the Year Ended June 30, 2013
Vandalism Total
& Graffiti Special Revenue
Reward CDBG Funds
REVENUES
Taxes -$ -$ 221,602$
Assessments - - 1,181,902
Fines and forfeitures - - 85,305
Development fees - - 11,621
Intergovernmental - - 2,396,489
Investment earnings 271 - 105,044
Other 3,043 - 325,215
Total Revenues 3,314 - 4,327,178
EXPENDITURES
Current:
Public safety - - 78,233
Public works - - 978,904
Community development - - 320,267
Culture and leisure - - 679,036
Debt service:
Principal - - 99,520
Interest - - 5,899
Capital outlay - - 39,249
Total Expenditures - - 2,201,108
Excess (Deficiency) of Revenues
Over (Under) Expenditures 3,314 - 2,126,070
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property - - 63,009
Transfers in - - 194,563
Transfers out - (20,869) (1,187,868)
Total Other Financing Sources (Uses) - (20,869) (930,296)
Net Change in Fund Balances 3,314 (20,869) 1,195,774
Fund Balances, Beginning of Year 23,119 - 9,789,681
Fund Balances, End of Year 26,433$ (20,869)$ 10,985,455$
Special Revenue Funds
PACKET PAGE: 180
AGENDA ITEM 5.1
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PACKET PAGE: 181
AGENDA ITEM 5.1
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City of San Jacinto
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Non-Major Capital Projects and Debt Service Funds
For the Year Ended June 30, 2013
TUMF Capital Underground Flood Traffic
Projects Utility Control Signalization
REVENUES
Taxes -$ -$ -$ -$
Assessments - - - -
Fines and forfeitures - - - -
Development fees - - 7,197 -
Intergovernmental 446,272 - - -
Investment earnings - 10,244 33,290 3,248
Other - 8,603 - -
Total Revenues 446,272 18,847 40,487 3,248
EXPENDITURES
Current:
General government - - - -
Public safety - - - -
Public works - - 70,029 4,544
Community development - - - -
Culture and leisure - - - -
Debt service:
Principal - - - -
Interest - - - -
Capital outlay - - - -
Total Expenditures - - 70,029 4,544
Excess (Deficiency) of Revenues
Over (Under) Expenditures 446,272 18,847 (29,542) (1,296)
OTHER FINANCING SOURCES (USES)
Proceeds from sale of property - - - -
Transfers in - - - -
Transfers out (1,535,645) - (464,870) (4,954)
Total Other Financing Sources (Uses) (1,535,645) - (464,870) (4,954)
Net Change in Fund Balances (1,089,373) 18,847 (494,412) (6,250)
Fund Balances, Beginning of Year 83,446 949,203 3,400,487 307,418
Fund Balances, End of Year (1,005,927)$ 968,050$ 2,906,075$ 301,168$
Capital Projects
PACKET PAGE: 182
AGENDA ITEM 5.1
-82-
Capital Projects Debt Service Total
Highway 79 Total Assessment Total Non-Major
Capital Capital Projects District 87-1 Debt Governmental
Projects Funds Debt Service Service Funds
-$ -$ -$ -$ 221,602$
- - - - 1,181,902
- - - - 85,305
- 7,197 - - 18,818
- 446,272 - - 2,842,761
6,179 52,961 - - 158,005
- 8,603 - - 333,818
6,179 515,033 - - 4,842,211
- - 1,550 1,550 1,550
- - - - 78,233
- 74,573 - - 1,053,477
- - - - 320,267
- - - - 679,036
- - - - 99,520
- - - - 5,899
- - - - 39,249
- 74,573 1,550 1,550 2,277,231
6,179 440,460 (1,550) (1,550) 2,564,980
- - - - 63,009
- - - - 194,563
(26,097) (2,031,566) - - (3,219,434)
(26,097) (2,031,566) - - (2,961,862)
(19,918) (1,591,106) (1,550) (1,550) (396,882)
572,338 5,312,892 (441,457) (441,457) 14,661,116
552,420$ 3,721,786$ (443,007)$ (443,007)$ 14,264,234$
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The City Council Page 2
City of San Jacinto
Management’s estimate of the fair value of investments is based on information
provided by financial institutions. We evaluated the key factors and assumptions
used to develop the fair value of investments in determining that it is reasonable
in relation to the financial statements taken as a whole.
Management’s estimate of depreciation expense and accumulated depreciation
are based on the allocation of capital assets costs over the estimated useful life
of the assets. We evaluated the key factors and assumptions used to develop the
depreciation expense and accumulated depreciation in determining that they are
reasonable in relation to the financial statements taken as a whole. We also
evaluated the useful lives of assets employed by the City, and they appeared
reasonable based on the asset classes in service.
Certain financial statement disclosures are particularly sensitive because of their significance to
financial statement users. The most sensitive disclosure affecting the financial statements was:
The disclosure of pension benefit obligations in Note 5 to the financial statements
is based on actuarial assumptions. The City is part of a cost sharing risk pool for
retirement benefits and actual future liabilities will vary from estimates.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and
completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified
during the audit, other than those that are clearly trivial, and communicate them to the
appropriate level of management. No such misstatements were noted as part of our audit
procedures.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting,
or auditing matter, whether or not resolved to our satisfaction, that could be significant to the
financial statements or the auditor’s report. We are pleased to report that no such
disagreements arose during the course of our audit.
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The City Council Page 3
City of San Jacinto
Management Representations
We have requested certain representations from management that are included in the
management representation letter dated January 9, 2014.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and
accounting matters, similar to obtaining a “second opinion” on certain situations. If a
consultation involves application of an accounting principle to the governmental unit’s financial
statements or a determination of the type of auditor’s opinion that may be expressed on those
statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such
consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and
auditing standards, with management each year prior to retention as the governmental unit’s
auditors. However, these discussions occurred in the normal course of our professional
relationship and our responses were not a condition to our retention.
Other Matters
With respect to the supplementary information accompanying the financial statements, we made
certain inquiries of management and evaluated the form, content, and methods of preparing the
information to determine that the information complies with accounting principles generally
accepted in the United States of America, the method of preparing it has not changed from the
prior period, and the information is appropriate and complete in relation to our audit of the
financial statements. We compared and reconciled the supplementary information to the
underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
This information is intended solely for the use of City Council and management of the City of
San Jacinto and is not intended to be, and should not be, used by anyone other than these
specified parties.
Very truly yours,
Rogers, Anderson, Malody & Scott, LLP
San Bernardino, CA
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January 21, 2014
TO: The Honorable Mayor and Members of the City Council
FROM: Steve Mike, Police Chief
SUBJECT: Amendment of Previously Approved Supplemental Law Enforcement
Service Fund (SLESF) Grant Spending Plan (FY 2012-2013)
RECOMMENDATION:
Staff recommends that the City Council, by motion, approve the Amended proposed
spending plan for the Supplemental Law Enforcement Services Fund (SLESF) for Fiscal
Years 2012-2013.
BACKGROUND:
The Supplemental Law Enforcement Services Grant funding is received from the State
of California’s Citizen’s Option for Public Safety Programs via the County of Riverside.
The program began in 1997 and continues to be funded. The use of SLESA funds are
only for front-line law enforcement services. The countywide spending plan is approved
by the Supplemental Law Enforcement Oversight Committee that is chaired by the
Sheriff of Riverside County.
The previous spending plan had been approved by the City Council and submitted in
January 2013. The complete funding has been received since that time. No
expenditures of those funds have yet occurred. A revised spending plan for those funds
is being proposed here.
The San Jacinto Police Department proposes that the 2012-2013 Supplemental Law
Enforcement Services funding be spent on the following categories:
EQUIPMENT:
A. Spike Strips – (5) Spike strips. This equipment necessary to safely terminate a police
pursuit by deploying a strip of spikes in front of the fleeing suspect vehicle. The existing
spike strip(s) are damaged and outdated in need of replacement.
Estimated Cost: $3,500.00
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B. Logistics Supplies – Replacement AR-15 magazines (30), as the current magazines
have exceeded their lifespan and have the possibility of malfunctioning, due to worn out
springs and metal fatigue.
Estimated Cost: $1,000.00
C. Logistics Supplies – Night vision equipment and binoculars (2) are needed in order to
improve special enforcement and patrol operations.
Estimated Cost: $8,000.00
D. Logistics Supplies – Outdoor mobile folding room dividers (2), to be used for critical
incidents.
Estimated Cost: $2,000.00
E. Specialty Patrol Items – Equip two (2) mountain bikes with lights, siren and misc.
equipment to identify bikes as “Police” bikes, for specialized patrol programs. This
expenditure includes annual maintenance of bikes for three (3) years.
Estimated Cost: $4,000.00
F. Police Station – Four (5) Color LaserJet printers, and (6) Scanners. The station
currently has two color printers, which are used by all staff members. Both printers
have either met or exceeded their lifespan and one is currently non-operational. This
expenditure includes color ink cartridges. Scanners in lieu of color printers will save on
maintenance costs and will more efficiently allow supervisors to electronically save data
files.
Estimated Cost: $7,500.00
G. Crime Prevention Promotional Items – Update and replace Crime Prevention items
in order to continue and expand the existing crime prevention and neighborhood watch
programs.
Estimated Cost: $3,000.00
H. Office Supplies - Desk partitions for clerical bureau.
Estimated Cost: $1,700.00
I. Computer Equipment – Six (6) Apple iPads for supervisors. This technology would
provide each supervisor with the capability of instant internet and WI-FI access to
enable the supervisor to pull up maps to coordinate road closures, perimeters for
outstanding suspects, instant communication on critical incidents, etc. The purchase
includes internet data package for three (3) years.
Estimated Cost: $11,700.00
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J. Police Station – Parking Lot Expansion Secured Evidence Section– Previous
requests for expenditure of funds that have been allocated to expand the Police
Departments parking facility were granted. After completion of the parking lot
expansion, room was obtained to open a secured evidence section. This will drastically
reduce costs associated with extended vehicle impound fees from private tow facilities
and improve the chain of custody on evidentiary tows.
Estimated Cost: $7,600.00
K. Audio-Video Equipment – The San Jacinto Police department’s video monitoring
system is extremely outdated and requires extensive repair and upgrades. The video
recordings of incident interviews are very important to the San Jacinto Police
Department, and specifically, retention is paramount in prosecution of criminals. The
purchase includes additional service contract with the vendor for three (3) years.
Estimated Cost: $50,000.00
Total Proposed Expenditures: $100,000.00
The amounts that are presented above are estimates based on current information
received. Expenditures will be adjusted if prices change, in order to keep expenses
within the allotted fund amount.
ALTERNATIVES:
1. By motion, approve and authorize the spending plan as presented.
2. Provide staff with further direction.
FISCAL IMPACT:
This stand-alone expenditure plan of $100,000.00 is strictly from grant funds and no
additional funds are required. The funds have already been received.
ATTACHMENTS:
None.
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