The URL can be used to link to this page

12/10/2013 C� JL OF,�1Ji R� TESL�:JL ill �i i./E• - _ ', ., AGENDA & STAFF.REPORTS FOR THE, ; REGULAR MEETING OF-THE CITY"COUNCIL,ANDJHE CITY'COUNCIL AS THE-:S000ESSOR'.AGENCY TO THE COMMUNITY REDEVELOPMENT'AGENCY-&,THE,GRAND TERRACE 1HOUSIN'G•AUTHORITY TU-ESDAY, -December. ;10;_2013 . :6:0.0 ;P.M. :Regular Meeting' C. " �J' COUNCIL CHAMBERS, - GRAND TERRACE-CIVIC.CENTER='22.79S.BARTON=.ROAD•GRAND TERR'ACE;:CA 92313 Walt Stanckio' itz, Mayor Bernardo•Sandoval, Mayor P,ro.Tem Darcy McNa'bo.e, Coundmember _ Jackie Mitchell'; Councilmeenber -Sylvia Robles;Councilmember BOtsy-Adarhs-'City Manager_ Richard L. Adams.,'Uty Attorney Cyrithia,Fortune, Finance Manager Richard Shields, Commuriity Development Director Tracev Martinez,-CIVIC, City Clerk -The Grand Terrace City Council rneets on the'Second.'and:Fourth Tuesday of.each,morith'at-,6:60,p�m.- 4� .� . CITY OF GRAND TERRACE CITY COUNCIL AGENDA • DECEMBER 10, 2013 Council Chambers Regular Meeting 6:00 PM Grand Terrace Civic Center• 22795 Barton Road The City of Grand Terrace complies with the Americans with Disabilities Act of 1990. If you require r-_• special assistance to participate in this meeting, please call the City Clerk's office at (909) 824-6621 at _ f least 48 hours prior to the meeting. If you desire to address the City Council during the meeting, please complete a request to speak form available at the entrance and present it to the City Clerk. Speakers will be called upon by the Mayor at the appropriate time. Any documents provided to a majority of the City Council regarding any item on this agenda will be made available for public inspection in the City Clerk's office at.city hall located at 22795 Barton Road during normal business hours. In addition, such documents will be posted on the City's website at www.cityofgrandterrace.org 'CALL TO ORDER Convene City Council .arid City Council as the Successor Agency to the Community Redevelopment Agency - ,1 Invocation Pledge.of Allegiance Roll Call Attende `IPfesent�' 'M6y6rWalt;Stanckiewitz 0 ❑ 0 Mayor Pro Tem Bernardo Sandoval .❑ p El Council Member'Darcy McNaboe ❑ ❑ 0 Council Member Jackie Mitchell ❑ ❑ ❑ Council Member Sylvia Robles. ❑ ❑ ❑ 1. ITEMS TO DELETE 2. SPECIAL,PRESENTATIONS A. Special Recognition -JoAnn Johnson ,,B. Special Recognition -_Rick McClintock C. Updates by Legislative Representatives(Federal, State&County) City of Grand Terrace Page 1 Updated 41412013 11:29 AM Agenda Grand Terrace City Council December 10, 2013 3. CONSENT CALENDAR The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the Council at one time without discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion. A. Waive Full Reading of Full Ordinances on Agenda B Oversight Board Resignation/Appointment C. Declaration.of Results for the November 5, 2013 Special Consolidated Election D. Annual Financial Report and Related Documents for Year Ended June 30, 2012 E. Approve Historical and Cultural Activities Committee Minutes of November 4, 2013 F. Approval of Check Register No. 12-10-2013 4. PUBLIC COMMENT This,is the opportunity-for members of the public to comment on any items not appearing on the regular agenda. .Because of restrictions contained in California Law, the City Council may not discuss or act on any. item 'hot.:66 the agenda,'.bui may,briefly respond. -to statements made ;or ;ask a question for clarification'. The Mayor may,al'so'request a brief.response from staff to-questions-raised during public comment o.r.may request a matter belagendized for a future meeting. 5. COUNCIL REPORTS - 6. PUBLIC HEARINGS 7.' UNFINISHEDbUSINESS A. Reconsideration of Scheduled'Budget Reductions 8. NEW BUSINESS, A. Council Ad HmCommittee on Redevelopment"Dissolution r 9. -ITEMS.•F.,OR POSSIBLE CONSIDERATION RELATED TO COUNCIL'.DIRECTRED BUDGET REDUCTIONS A. Twenty-First Amendment to Law Enforcement Services Contract B. City Provided•Health Insurance Benefit for City Hall Employees C. An Ordinance of.the City Council to Repeal and Replace Chapter 2.16-(Planning Commission);of Title 2 of the Grand Ter'race'Municipal Code D. Resolution Ameriaing the Meeting Times for City Council, Planning Commission,, mergency Operations Committee and,Historical and Cultural Activities Committee ,I City of Grand Terrace Pale 2 Updated 41412613 11:29 AM Agenda Grand Terrace City Council December 10, 2013 10. CLOSED SESSION A. Conference with Labor Negotiators - Pursuant to Government Code 54957.6 - City Representatives: Betsy Adams, City Manager and Richard L. Adams II, City Attorney - Unrepresented Employees: All Unrepresented Employees, Including City Manager B. Public Employee Appointment-Pursuant to Government Code 54957 (b) (1)-Title: City Manager _ ADJOURN t � The Next Regular City Council Meeting will be held on Tuesday, January 14, 2014 at 6:00 PM. Agenda item requests must be submitted in writing to the City Clerk's office no later than 14 calendar days preceding the meeting. City of Grand Terrace Page 3 Updated 4/4/2013 11:29 AM IRZF qG,p��A QW : - N"' PORT , A RE MEET11.1 DATE: Debb M,b6r 10.42613 Council Item TITLE: Ovbf b t,Board Re§!gnau0n/Appp!nt ment PRESENTED BY: Tracey iM6rfin62,,.,0- ENDATION: Aocepttgrq�i resignation pf-R_ iEil�_J Rt_:C0MM-'_ jdb6i�&86 d's from-the'Oversi'dht 5,6at.' df the'jSuccessor- A" n6.y"of the fbrM'er' Grand"Community P Appoint.... .. . _ fd�"bft_�6 att V1l:irz'to thef-,versig_''_hibpir theb sor Agevdt�jght 1.0 ' ' ra bt Grand , Terrace - rp"mr- qn, ity R044VO[oprn n Agekq " 6 Anpn&'MP'&1U6h"2 012-47 PP M, -,'j E -jir.Z.,gith- appointment p. j Q Ws 0APNkId"10,000 ;h8'8tfib-a'UthdhV itd-a iW` f n,.,,j , n ,,th&'AOVMr 8i T;r',h,.b 1 rg " Q "bAa�Pu ;SM v 6 e ,566A16 4" P- §fgw A M 2 -e e _TI Or _ _90 AMeK,WO h'dy-. °w d ti iffe#---., T a-secon-appotp't- �b th iffi-s6if 'Thi"M c�Wdr�'Jdbbjrd t-h 6 f b .to"? pppiml �11-_ _e _ y: r.,gypr q, e ;a _ pprese tiVej`of h" p- I ire_s.-�_46fQ,A_7_ 'e. fo pT j _d e ppmoh t %gahby .. , 76 y " U a" 7"ffi — y Y or 4,dedde . P Inf ( ib6o ffih Jnd or PYC ' , " " 1 , , V L'hjjPqgitioh- As-"- quire&6 t e p� gy "Novi ,9bjU 4"2671bhmfit " h1 3 2012 C , 1 's"p q epAce - y Powers Reff Q, iCi Gf1nd-qbt dd,aM ite16 .6 if, h ad, rnn U-n om�--Pmj, g 8 Vst,2 " _ DISCUSS ION 4n ecem 3 20*111, Aidh4d -.Iji- -&-Aft- d iion to`:the '2. ",r,�,717'", e--M �7 -.86 iolds, n h' A-d6t 6f te 6 -n- B` d "'K 'j,"66ch R U1, ty mt h f, d"' ig, � I g c f of A G TsQan; q, , , S 7 ,.G7!o-7AVVb,fWh-,br Ts. ran qOd ovwer-tofI vacancies on n�PYepjtgffif j �h nn,ppder Q, jprepejr.V6' ft "h* 'UM6 __this'b 'ha's 6 9, seats . R p ;,,,pni y,to �1' , ody. Ah- MpyorL,, V% p P ha&ffi, 1f _'T h7 .Ma J I 'W""' M ft -Anal` Fit,B d d66idbdAd rw R, PPPITITAIP'," Spw for § oin 0 y'li, -bu bil!h I ointments g,4 -4 A '!,.!�U�-_!Cl,dd d" K"lilf, T yw�,IqxiA sy- ,q jp U§K'" 66MI-66b",id t r y 'f6116WiG Ahb-f.NOt-Aff�Jq '' Id' fiffi-Qt' d W t-ft-ft- R b- p@-( _yrC o OPTOV, ,ethe ,C a 61h D),,ratifymg the Mayors appotntrnent -am tt W a -C-Od"O"4 00,6'- t tftr`.. -w _0 u-�k:(Attachment r i the -q -09 )M Maq:@=BfPg�M41i FISCAL IMPACT: There is no fiscal impact with amending Resolution 2012-47, ratifying the Mayor's appointment of Matt Wirz to the Oversight Board. ATTACHMENTS: • Attachment A_ Resolution 2012-17 • Attachment B_Resolution 2012-47 • Attachment C_Letter of Resignation • Attachment D Amended Resolution APPROVALS: Tracey Martinez Completed 12/03/20,13 4:49 PM Finance Completed 12/04/20;13 3:10 PM City Attorney Completed 12/04/20'13 3:31 PM City Manager Completed 12/04/20' 3 3:34 PM City Council Pending I i t ! I i i I i 1 I I f - I i i ;Packe rn, 't_�Pg 5�• JIMM. �•_ - • .RESOLUTION.'NOt' ':2012=17 c - - -A :RESOLUTION =OF THE C TY COUNCIL OF1GRAND - a Str"tlitn;xS, _ sa=: TERRACE: 'TO :RATIFY t n o-,. AND :iQ►PPROVE-s= THE; ✓.r-t,^.:;:'..yiir` r 3i 'A r_ .st- -y .-4Y,..•:3.1:L'.�J� - [: a.:•. .F rn.::< _ - Q' �APPOINTMEHT =BY`'TH • 1 -� r= E� MAY,OR:��QF�;tiTHE�r ?:L•L;-x::FC':i"5?eYy.__AXe"��- `5:.-.;:5ti-t:9.Y:' ':L^.^.^,.r5.., y. -.,y:::a,.S.J,.,:r:.-•-!t.i- .',P+•,rt•e:¢::�y-.:i;i',>-• ..� :GRAND" ;::TERRACE,.:OF ' ':TWO::s I1�lEMBERS==``T04: 'THE; - s ;OVERSIGHT BOARD' THE =SUC:CES,SQ.R- AGENCY 77 f 4ri o : J ;-THELL:;" :kFORMEW'-"FOR"' -;_ - `REDEVELOPMENT,AGENCY PkU�R_ SU_ANT"TO HEALTH.'& � 'SAFET1f CODE'SECTION 34179.. _ _ = 'E 142,WHEREAS ABX1 260` :eratedfo dssolreall edeveh ` '`"`"' ' P.: _ r op.rnentagencies`in O S-:-ABX WHEREA1:°26'-allowsah,::ei�.,� - -pty';that autf:oried_tfe4cieaton�ofa .>= :_y.J;�:.� "-Y:'l. - = i i�i•y r..dev ment`a "e'nc, :f' 'ec' e. '"p.. g y o;b_ - om .asuccessor.;a`'enc' toIhat.red'evelo went a Jenc:' , .WHEREAS SA ' .y ..}_BX1;._,6:creaatesrovei�si��ti't-.tioards-"to:o�e�see:fhe�activities'of succes or-a ..encies� 9._ - ,:1! i:,•il,;:•. - - .i,., r:ti+�: •t.,;s - �'^ su'w-.F:"u" k: :i,::/-;s.�i •:..,-_$..•�• _ ' .t.-`'&.;'r,.�.`"_�' s';a:;;•' , Whit , AS,.ttre`Z '<ofJ:Grand Tec�aee�i�as o'to `��o E s..F.pl.. .. �:�'...,,,. tY, �» �P, d become:thesuecessor" q.. ,a.:.,. `�.;^ t:ya._ >rnr•J'Y4•:•„w� .<a.. u,_ ;-•^,3y�__G: •'hG.e-t?r..- Yt'r.;'�•. t;,.,�a>:r�..;�"-<:•>w-�;.G „{«.,..-,y Y.',+:!�:i. �':�^`- ;the'rGrand:°Te`-grace. Redevelo " ent:Ar'enc s n s 's'" y „.. p,rr. g.. Y;ra,d;;ther�efor,.,e,�an,.,oersi,"ht; •C� t. :i - sLt%-:Wr�,`i�..'fN•^.:f,' . j' `a:Yb,yJYak:f rµ. .'y:,,,.:1..i_.Fti:�f,'.w.. 3'H:r�� `:,K.. _-FJ„ r .,?'. s: . _ .,Lr.,,ti,..r ?L�_ .e F .:�,i. i.�:�i3:. ••c:..r..v� �•:..�•"+:�ti:<.`'' .:.i :S'iJ�i{!"•.ai n,;.�:'t__;e rJ�'-r,-.,.h: -_: :�oard� xists,':fo:r the du_ccesso a e.nc,� Idlher.Grdh` Terra `'' �r Ir. g.Y�- ,,y..,. _ ce,,Re`develo "menu-A- enc:` _ _ e S - ti { _ '`:.':;'R.c'F-ice :1"• _e r. t.:S. , - - 'ri� r-�� ;WHEREAS +.He"I`h =a a t ,&;Safe Code,Section 341.79^a 2 rovides, :o .a. ,4.;,.:: h- (:..)(-.) I?,x ha ,the:Mayor a .: ,.. - - yyi ::�i. .i=J:qi, _.4" •`i r:8..:..;•�:-j•. .`.':S .Y i'JK• �-�,':,j~�:a-r. .y:.. i.� :- .yy'r "'r. _ If �':,,.s`' rr - sex _...:.��£,;<.^;�'�a=Ts.�.•r=. _ :! •. ;of the-ci ,:�ttiat-authoij tFfiedcreation ofra,redevelo' rnent a en tY,., �"r k h.'. :.::.P.. 9 'c,X:rnaYappoint •-:r,. .<<,.:�, , - -ic r.•• :+F:.,,��;;; ,:# :n ,oa- e'+2:,...a.E;r..,Jx M:. la""r'a`memtie to;the:Ave�si 'iatiB` the: '; ,..:g. g oagf:; cSuccesso�AQ:enc ao.fihe,former, Y v:,';L'^9 • .<u�- i .Yr...,.a Y .ir..`.x::..•.. ..<t: �VJ redevelopment`agency u<J, ZKs �t c 4 WMEREAS,.Health.&:Safee `Core section, r`,,l ty{ 4:179:a: 7; `"rovides,aFiat#heMa'. or . ,:s•:':.tY «:sf r ,.i.- „P .°r7:o ac::.a z.n;• - rem .V ~y V, Q ;of the c thatiauttionetlY'tFe=c�eationof retl a,. evelo "ieni a enc:,,:ma, ;a :oi"t'one s �,:w -_ �ii'.-�:'.�^. v'i��+^.`.':..r:4:-z:%;•'�_'»;:i",'lf,.ia y�r�.::41. ...y: member.fo.ytfe°O'v".ecsi' h't�;Boadof=the SuceessorA'°'enc to',re rese P.;: n#:employees:ofthe' :r°s�; •„'.�-":.5=� .1+5:.".":: �A'"?i« formerrredevelo'rnent-a WHEREAS= Government Code'Sectio06 ..r,,,.J. _ �,. _-05;requires tlat,.an. _a omtmenf-b, :o a the;Ma,,or-rnustabea' :roved°ib"'::the:'C' F.Cowncil •.. io " d i .� W TH REFORE�=-'�THE�� TY��C�� C - �,_ - ,,. ,O.UN, ILA:OF�GRAND��TERRACEDOES. -:«�ha._..r':.�.i:�'..•.:.1'+}^y.r__a': �5'- -"- s:F•:,w'.i.a4:�^•.G.-.�i...Yt 4�.�._:..._•.-.^'��''-' '-'ram - •':�, . 'RESQLVE DETERMINE'-FIND.-AND ORDER�AS FOLLOINS:F:-' �'r94 '>rb ''S'E TION 1 `i' r �'Tle:',Ci Cou`Heil.hereb'`'• ratifesanda" 'rovesttieMa:'or's-`. —a y. '. nii., � a poii tmen .fof, ., . n, s pp t :Mayor:VlYaltrStanckiewitz-tothe.O.versi ht Board'of;the:°Successor_ ' ll -ssi'..:� :_Sv .4w .:3,- ,.`i.- %yi;R .:d'• - ,i.^.L:f .•arti.�;9.- :Z�- - {-<• - - sy�!. ets1:-'w '{ .i�r :�u1-.s..i.. :•'�A`- - :?6i. `.'-- _ -.�•.?'-i.;w"" A enc. 'eto3the"Grand=TerraceR'edevelo rnent}A enc ;` ursuant m' g" - ,�9 ealth��°�}Safe v �Sectonz341`79(a 2). - , =: E - t� ", - Paekef fig.6 77 r ea n N:"l. The°'Ci Council:a�so';tie�eb;' �at`fes,ar�d'a � . .- _ ; !.` Y, pproves'aheM:a or's ,v_ ,.. Y_.. _ _' -t, f o:",ce Powers , the Pvew h`t p, _ - _ _,. _ Ya:� _ ,Board cftfe��Successo�'-A• enc`��to.:the' Gr antl T`� err�� de�elo�'mentrA� - ene� ''ursuanv .{ ;a cfiieEC , , . tBoaareN Pii ` #o be o effeT P o v immediately; c `SECTION`4:'The C :Clerk shall'=.certi =to the assa a aritl "PRY yfy., p ;g atlo"it, :.of tFis _ ; f�etreo otl 0'S. r E PAS$ED,; 4PPROVED AND',ADOPTED':this_13tfi`da .of-;March,;201:2: . "i m :. IMaygt:;of the"Ci of Grand Teace " , =E - wP�t ,, -ty rk,a `tFie- - i{{((��//��=o#<Gran TeRace F rl.• AAA+++ .•+.' Vie•' r, :q�Y t'- �: ("TRACE 1`Fl_s. 1(:R;. MARTINI'.CITY..CLERK:of`?the-Ci of.Gran . 'e"" >F r• h Y tY d;,T trace;;do:fie�et ?1 _ `F`:. +..t•i:4�':r.M A'�tA c rt that the::foce'"`oin 'Resolu ion.w--fy+, t asantroducedand°ado ted,-afi'a°:re''ul` r rnee i _ i fhe,Ci� �:Co c,uricil,of�tte.�C � 'of.G� `nd Terrace held:o� j(�y� .ty, ri ,:, ;;Counc ]membe=s I�icHoe ;Sand' ogal":and�::Ha� I�a��:o='•;Pro.•Tem��Garcia:. C3Ild';M$ Orr c'stBIICld eiFtZ" Tracey:;F atine C. tflg `., :�APPROUED=_AS�,TOFORM `co 'C;ityAtorney` i � , R'ESOLU_TION~NO. 2_o =2=4.7. ,`.fib = 5, v) `'1l - `'t^ - - - - A. R SOLU.TIONy OF:°THE:;CITY:':iCO N F _ HE IT` :OF':-GRAND: w TER.., `sa.,_> - aJv ,L.. - _`-;' - `ram;�''`�°-_ _ - - '�y;:::% ..�4'::. _, ;:=- ._ RACE= ::C 'LIF�Ow IA '..,:'AMENDING.'. RESOL'UTLO 20� %2`-11 A:a. . •,-RMt:.�. ..,u=, -� '�,:. .,N: o •5•.:,�, .,?,�- - - - �;+'� ..,�x�.,• ,-s•4.>': Q' . TIFYING'aAND yeAP'PROVING'THE'�nPP.OINTMENT��BYv°.THE>`MAV'O.R tA _ a v:N� - i .`:Y^.5- F�{tA'J'!S IVIE Yt c. OF; THE` DITK �.OF. `'.;GRAND` °TERRAC.E�"--ONE``=iMEMBER- PTO =THE- `<'^^i. .U�.u"r '.R:f:' �•�vnyr?i:,".Wit. :a"a. •v;7 •�:� t?�";a,:,. "-3•�3F;t n:,_?f-�• ,C OUERSi'GHT:t B0`A'RD "';OF` 'THE` :.SUCCESSOR :.'AGEN' Y;':'FO:R`:'THE ..,+iT,t>y'u .,s�,r..e :.U".�:V:, ro:.,;,r ,5:., ., - 'Tek,;c.'Jx:�_..: 'te,,::g� :.h: •.�[ _ ,L,:lry.,r�,- ,:. �V , "F.ORMER�•• :GRAND:::. ERRACE.� .R'EDEUELOP:MENT• �=AGENCY - , _�PURSU'ANT�`TOHEALTH:&:'SioF.ET�Y'�CODESEC- �_ION��34.17.9• � UNHEREAS AB`X�1 2'6 ;o ;e°gated" to :diss`olve gall rede'elo 'me'nt a envies- m E :Califoria a�ntl• - �� - � WHEREAS 'ABX'I 26 `?all:ows tithe_ ci �,fhat, `bJJ horize' h" cc iY t d t e. :creation of :a o r'.` e a"' ed velo` 'meet. env: `to,t`ecore.tfe successor;a env j to-efhaf: ed'evel'o'ment • :and` ., - :. .. • `;� • . 5 � '� . E 0 - N WHEREAS`'fh of-'Gran er` ce "a'"ty d T ra fig, q=_ted -t9becoine •:the'-successor 'S. L' #o afne 'Gr""and' Te.�cace` Red"`velo' 'e LD e. 'gym nt�A` ,en:c`�"�and��'��the�efo�e=��an._.,oversi�'ht;. .tf.: J`• til. ,}itl ..<:. .f. '>..-�:: a7....5, .2. •.y � -jr,.. -�.�i.:...,r,...:r,_;r -�-v..:a: _ --board'.exits4:for-Ahe';�:`U&cessor-A enc` ,t6.1h'e':Grand':Terrace' 'j t' - :g. : ..Y,, . _.�., Redeeloprnent:>Agenc" :IQ '1. aidIQ v' , , = Co�� e :e,c.i..o. .n_ s•�':4;.1UVHE�REAS=:;Hte . , >e'ahme_Ma& afet- , ;a Oe*t ce. o >of:a deuelo`mee oioz 1' ,io- '� na :dity that4id ttedAh & nre agec a nne o Oem tIar e s to ees: e' tta of-fhe`form`e °retl` �e`o`men a"e�. I t�a eric' . nd' :!?-x - -.9: . H :Y' 1N ER Telcace C J;Council:,=a 'roved' _2G ti x'�.c'�i�: t;?'::�:- 7^ :}'',"ter`w>"Y`i"r 5� "} Resoluti.o.n>r201.2_17_:rati '`in Rand`=a rosin -tle'.Ma. o _•sya" `o n - :�.�_ <_'� :.,_ �• -.fY'.-9�•:r�. .,pp- ..�...g �. .Y._�. �_ pp i,tme"nt�of..Mai,org.�lNalf�.,: •'6�- :'4•• -.:l.s✓.- :.:.F:.i.> •.�{ ,i N`• (i-•`i jt �Y....?� ..r..��! ..5�5:�:.�3n.f ~•'i'4:�. 'yi3:.4J�'..- - '.ry �"�•'_�;s.... .:fA 'J- '.'i�'s -- a ',• irk; `Y•:'�, - -Stanckiewhe:`O'`a si,r_ ht6'oard`•'xof.�the',Successor.: /�enc;` to, ,the..:Grand:`�Te�cace ` .icy,. - szui' A.rr 5..:1..• :1•.s :.-.�:_• `+'S,4 .�,L,:�...':a:: ^.S�• `7_,' _»Y:'`_•:.:t.t.. ,5 t. r<,..r,.. .: :.:s., " rcti'� :i.. :t4� ',)Y., :::Y..;Lr _ -it 1'ii F�s'r,u+`., .h: F ,::t;v-+," - '7- Z4,•.a-,. :C:'� •� :-r'�i"'" v r:.,Y' •rr;; - .✓,f_; _ ' ;Y,- =a =Ro ve :� ; MI Io' ent:Q' env`' ur' vant to..Health;&,:Safe -`Cotle Section..MI ._ .:P g. Y..p_ { tY,,. _.{ yf• „r w a� a�`or �a�` `o'ntmen �':o hJ:o� �<'ow�'"rs•�`oA� �•�M y._ } m� f f. ;ce=P, e ,f the q :esi` t B`oardof: he:Success'or:A env` �..>,. ,pP,:.�ti." „a~�,. .;.Y_ -:.�' -a?:� .:. ..,".ar{+',.,T.x.„ .,vy+,;-.�.. 9.�: ��Y'1 .� fo tfe Redeelo "n'A 'c nr` ;< N 'me.t,. en .0 s'uant..to��Healtl `�&��Safe' .Cod.e�S:ec�ti:o-n�;3�-17.9•a' << s . t. o :WHEREAS'i :Jo. ;ce.:P.owers aubmiited:Fer. letter'r of;,resr nation>to;jtfe' ti iiesi Board=on.;Au`ust 1' -20}12"sand - sa' _^r HEREA' S" I`n ortler.to;-:P`..,_eseive:the Git`Y,..s. o•I'? y,i.t. _. ... _, os.eats /Mav porunit �fohew' o tkiis". =r'=1s;;:u.�q�..u' •r.F�- .i-r.:.w-,,`•�r<;'..�:;�,'.'.r3;'' ;t�;::�:.• .''::r_is�s:'+'. Ti3� "bod the,,Ma='or shall.,a oint one..at=lar'a member to.#h'6,00y-si``fit Boar .c Y;. Y.. PP g. . h, d :._e l ry('� :1!: :: •,, - - -i r r- •;fh.-•-SFr - ru `'._;.- ..t:r;, .,L.,:�. •>s,-acing,' Jo :ce,P;ower_`sM> e"resentin=Kem to'.ee's�J'WIN"�forrnerfr<edevelo mentKa Y.,-...,. ,_.. ,P 9_ : .Pu Y Pne ,i. e❑ y; ands` " RE ' 0 �riusta etCco4o c tdS eF :o.r�n, be;:a roped b: t(a'e Ci` C0"uricL w :. p Wt Sxt � - y `: ;NOW- THEREF.013E`. - O ca THE' CITY':C.OUNCIL O THE.:GITY`,O.F'GRAND DOE ,_ F:,:: S-,, Y•i« _ - - - - - ``x^:^.p:tti` "1:1�. ir-::- '.t':• iy.:n :41:jrYn .; •{`:?` a�- .A-'t ., �,..,... ..•.. C' t, RES;O4M. DET=RMIN'°,FIND AND'ORDER:AS FOLLFOVII ^ _ ��S•- i ection 1`: h.e, ''Ci Council'. 1•., hereb:`; 4 at fie.'s and La roves fhe aMa_ or''s ,s. Q.'. �a o I tinent�'o - •'i" '-`n f:R c;ard��Sf 'elds,�to:tie`��Owersi h -.Bo r•_ _ t'.� a dsof;tfe�S:u cesso��'A erie'...fo.��the• �. 'Gi rid'.Terra'c a e�� e` elo:�R ''m nt enc 'u�rsu�ant��to: _ .,,:. _ _•R. .HealtF��an;d'Safet" •�C:ode��Sectorr 34179'ayf7; ye"'lace .Jo `ce=P:owers: - - '. {_ -o d ;Section2.. Tf i`e' aforerientione • a' ointment>to':tlie pp �effective'ari:medi_af'ely. - ' • ;' --- � '=� The' :City"-'JOIA' sh`a I e i •to "' '`' ' r do 3 y _ ,I .c rt'fy. the. 'assa a-sand °'ado 'tioit of tit"' a:gip. :9. .,• P: :reso ution'an i k f resol,utions,'+ M d'enter t into the boo o _ t , C PASSED A1VD 'oAOPTED tfis:POED 47 ..- - _ - •' - . _ -,,of�>the:f,Ci �Co`uncil.thereof� ' . - • � �°-�•``°'�:�'• :ATTEST:` AM rCt'�:Ci'eck the,. °=i ,;ofG:an" ::3 :e' ra;ce` y he r r_e b �:c_er a,fJ .. I:N Z��C C te'�CiouceGd�`anrdid T �ree8C=_' atli.forneiadlaoA �a jeoutonwdt r he',f e� n t : i Sy - "e a .� i�L.�/I Cou�ncih o';the`.C.i '•of;G-rand_Te�rrace'.h:el�d'`on�'th-e,28-�h�da'.�.of'.-�u•: i /(,�.R,�.,'\- - a♦;-.,� _ „l{::Yf,, e.•v-. .....+. - ':Y:•� ___'i..- x.w, �,- ..J..�_ �-.,9=..*��.1 .� �,. ,ollowi� -� 4 AYES. c'u ,4 o. n'clmember- H-a`s S'andov'al :and McNaboe:� - - , • 4NOES , ':None - 1 - . N s _ABSENT -Norte „ Y= =AB'STAIN::� sNorie ,.c `' ts'; Appo °ed:as tg ifo�m - -" - - {; :Cia =Attorie Ct'-=Clerk - n E °R'icfia�d Sl;elds' � �. :1364.Grote.r:. Drive 'o Riveside CA92507 - Q ~December=2; 20'1:,3 0 . agave.de.cided to'retire from:.:9:or..vernm,�en.xt.: eY' cre:Api[m . _ . -,. b-te r O 2►y� Wit• .fin Y• e ent'and' a":�mei�ber of:.the-,Owersi"'lit =Board 'c�� -51:' '�y.J'+ ��„ ." - ,P,.. ,.9,,,�. _ 'fo��•�the��S.0 .cessor� - i�4'��t �S o t:r fi�eAC` of�:Grand=Ter• "ce-,• effective,at:th'eend;=:of::tfe�da:':��D:ece�nb'e�--3�1.:201�.: w MY�Iasf:wo�King;da`��.will��b�e!Decemb�e��17-,�20'i:3., - Retlnn firom:the:.Cl ..of :'Terrace`-was. n g .. tY.. Grand, ot=�aii:eas":decis>gn:, .M 'tearswith`tFe SAY:+'- {2: - ;.C.. ;;3_ :�::: - �.. ..h 'Sx:,.-.._- w` • .: CI v e3 - ='ha a been: otfi'' - =<t p _ ersonalL` ,and:: rofessionallrewardin"„wantl -sP.. .Y.�•. ..� R ..�.:�9,�..,,.. ,s..- _:' re' .r - "!r?; .e?: T•'ti':'6�a 'taav';rs.:,>j�: �� .t ,v s?.`..z.3.% :�.!I✓' - +'.i4'-Y' :fY 'r. Interest .outhave.. '3 "�` shown,.i:nam"'"caree =slnce `ou;came='on'boacd. .I:wlsh>the;Cl ':oni"' pY«: rv.. Y .:, s tS -MSnce6el" - - y' T•J:.tn:�` ,�+'Y; _ --J_: ,-yy if 'Yh..e f1 .- .- , - ^,.'s. s� iy,�W Packet Pam.61 .;M- w w RESOLUTION NO. A RESOLUTION OF THE CITY ,COUNCIL OF THE CITY OF GRAND = TERRACE; CALIFORNIA, - AM�END'ING RESOLUTION 201:2-47 0 RATIFYING AND APPROVING THE APPOINTMENT',BY THE =MAY.OR • Q OF THE CITY .OF' GRAND TERRACE ONE MEMBER TO THE c OVERSLGHT BOARD OF THE SUCCESSOR AGENCY � FOR THE FORMER GRAND TERRACE REDEVELOPMENT � AGENCY N PURSUANT TO HEALTH & SAFETY CODE SECTION 34179 ' WHEREAS, ABX1 26 operated to dissolve all redevelopment agencies in a California; and c WHEREAS, ABX1 26 allows the city that authorized t e creation of a o redevelopment agency to become the successor agency to that redevelopment agency; r and 0 WHEREAS, ,the City of Grand Terrace has opted to .become the successor agency to,-=the. Grand Terrace Redevelopment Agency and, therefore, an oyersight board>:exists for'the successor agency to ,the Graritl Terrace Redeveloprrient Agency; y and _ WHEREAS; .Health & Safety Code Section 34.179(.a)(2) provides that the.Mayor of the,city;that authorized- the;creation•of a 'redevelopment agency mayvappointone at= large member toy the Oversight,Boa`rd of the Successor Agency to"represent employees :° of the former-redevelopment agency; and WHEREAS, on March_ 13, 2012, •the Grand Terrace CityCouncil clops".oved :Y�. Resolution..�2`012=17�ratis in and a rovin` the ".Mao xQ: ;.u. ;r .. ! .19 ;. I?P ;.9 :..Y .r s,. appointment of Mayor.Walt Stdnckiewitz:=to the �Oversignt`Jlaoam -of 'the Successor'- ency-to,the Gland' Terrace Q Redevelopment Agency pursuant to'Health & Safety:Code Section 34179(a)(2),ana the -- Mayors'ap'pointment,.of Joyce'.Powers to the Oversight Board of,the 'Successor Agency o to the Redevelopment Agency pursuant to Health & Safety Code Section 34179(a)(7); and N WHEREAS, Joyce Powers submitted her letter of resignatio I to the Oversight Board on.August 14, 2012; and E WHEREAS,, on August 28, '2013, 'the. Grand Terrace Cityy Council accepted ,the M•, f r resignation .of'Joyce Powers and approved Resolution `20.12.471 rat'fying ,tlie``Mayor's : appointment of'Richar`d,Shields to the Oversight;Board of.the Successor Agency;to the Redevelopment Agency pursuant to Health & Safety Gode'Section 34170.(a)(7); and • Q WHEREAS, Richard Shields submitted 'his letter of resignation to the Oversight Board on December 3, 2013-. and E i Resolution 2013- WHEREAS, In order to preserve the City's opportunity to have two seats on this body, the Mayor shall appoint one at;large.member to the Oversight Board, replacing Joyce Powers, representing employees of the former redevelopment agency; and _ '0, WHEREAS, Government Code Section 40605 requires that any appointment by the Mayor must be approved by the City Council. c NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND DOES RESOLVE, DETERMIN, FIND AND ORDER AS FOLLOWS: Section 1. The City Council hereby ratifies and approves the Mayor's appointment of Matt Wirz to the Oversight Board of the Successor Agency to the.Grand Terrace Redevelopment Agency pursuant to Health and Safety Code Section 34179(a)(7), replacing Richard Shields. m 0 Secti6n,2. The aforementioned_ appointment to the Oversight Board is to be effective immediately. o Section 3. The,City,' CI_erk .shall certify to the passage and adoption of this resolution`antl-enter it Tinto;the book of-resolutions. _. r� PASSED-,AP.PROVEp AND ADOPTED this 10th day of'D'ece,mber, 2013. s2=' c, ,o Mayor'of the City of Grand Terrace and of th`e City C.ouhbil'thereof _ ATTEST: - -city City Clerk of.the Cify of Grand Terrace . o .o I TRACEY R. MARTINEZ, City Clerk of the City of Grand,Terrace, California, do il hereby certify that the foregoing resolution' Was ,intro_ duced and adopted at a 'regular meeting bf the City Council of the City of Grand Terrace held on the 28th .day Of Ad _= by the'following vote: ,E. AYES: Yoi NOES: .E t ABSENT: ='a ABSTAIN: s r Q 2 _ C� D D o o m n. CD CD o m 0 o' 0 o W m t - +-oyl ip�r t wp• Y.�K�.i trrt !'Ea l Attacfiment:.Attachment D Amended Resolution_-(AcceptResignatior Richard,Sliields from the OB and Amen !solution-.Appointing:Matt ``. 77 T AG.E=N DA RE-POvRT +M;FETING DATE: teEernbet 1-0.;2013 Council Item ,. .. h . TITLE: Decfaration :of Results -for the Noven6er 5, 2013 Special Consolidated Election PRESENTED BY: Tracey-Martinez, CM.C-, City Cierk RECOMMENDATION: Adopt..,a Resolutionaeclarigg the.results of Ahe Novetnber 5, 2013 Special'�Consolidated Election;as-cerfifed by the San ,gpthbrdino County f-'A sfrar;-of Voters BACKGROu_N;.: On :November 5, 2013 a 8pecial'Consolidak d-iflection was held in ithe City:of Grand Tei"race for the voters to.consider a Utility Users' Tax, also known as iMeasure,-C The Special` Election was consolidated with;, =the,. County of °San: Bernardino :2013 Co'risol'ldatetl Election. .In ;accordance with the 4Elecfions Code, .the San. Bernardino x County Registrar of.Voters completed the:official_,canvass .and .has issuetl:;they certified `p s Accotdirig to the certifed'election.''res'ults.;'.Measue:C#ailed. DIP USSI:ON' The Elections `Code re,'�uires ;ttae.'bit . Couny l�tito. ado. :t ,a resolution r,-it --ah:e ffa-t,of q._ Y b P 9 ;the election and deelare.':the resuits. .Adopt on of tl"e'attached_ Resolution will_$btisfy'`thb re,qui Ad.de6166e thib.i su`Its.' FI$CAL IMPACT: None A TTACHMENTS; :Resolution{= Election Results 2013 APPROVAL°S: ed Tracey;Martinez Comp`L"et 12%Q3%20�1_`3'S0_.1 'PM e r.. - i.,"'':•_.- "is 4 , ?Finance Completed `12IQ:4%201.3:3"0$ P-M: �:.._, Citq_::Attor=:ney Corn erdp 2104 20_ 3.-3 4' City Manager Con;pleted 1.2%04%20`1'.3=349 PM City Council P.endin'g � Pack fPg: 4v - f RESOLUTION NO. 20-13- i ' A :RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND s.. T,EARACE, :CALIFORNiA, RECITING THE-FACT OF THE .SPECIAL s.G„ . MUNICIPAL ELECTION HELD,ON _NOVEMBER 5, 2013, D�CLARING - . - - v e gam,-v; : THE RESULT AND SUCH-OTHER-MATTE -1 AS PROUIDEDI BY LAW WHEREAS,"a Special, Election under'was held 'and conducted in the City of Grand Terrace, California, on Tuesday, November 5, 2013, as required by law; and N WHEREAS, ,notice of the election was given in time, fornj and manner as -provided"by law; 'that voting precincts were properly established; :that election officers c were appointed and that 'in all respects the election was held a'nd conducted and the ' votes were cast, .reviewed and canvassed and the returns made and declared in time, w form and manner as required 'by the provisions of the Elections Code of the State of California for the holding-of elections,in general law cities; and '10) WHEREAS., pursuant to Resolution,,2013-36, adopted:July,23, 2013, the San o Bernardino County Registrar of,Voters canvassed the:returns of the"election. and has ,N certifed,,the results to this;City Council, the:results are received, 'aftached_ and made a part he`reofras'"Exhibit A." - E NOW; THEREFORE, THE CITY ;COUNCIL OF TH,.6"CITY OF GRAND :Z TERRACE; CALIF05RNIA, DOES RESOLVE,' DECLARE, DETERMI:NE AND ORDER AS"FOLLOWS: .t J o =.N SECTION'1..The whole,number of votes cast in the-bit was 1,,8,85- y SECTION 2.=The Measure,voted upon at election is:as follows:, c lVleasureC Utility;UserTax Response ' Vote w To ensure Grand Terrace,has the,funds"necessary to remain 1 . an indepencieiit city and able t6p'rovide essential services to ,.,i.". residents Tincluding rapid response to.,9-1=1 `emergencies, es _Yd maintenance%r@pair,of local streets, adequate police services, and;mainfaining parks and 'public facilities, shall the City:of` Grand Terrace establish"a=utility usersaax of`5%o-for six years only wifih''independent citizen oversight, :all :money staying No local, and an:exemikon for low-income seniors? SECTION`°3. The number".of votes given in the City for and against the measure -is listed,in'the attacfa`ed Exhibit"A" SECTION 4. The.City-Council does;declare and.determine th as a result of the election, a majority of the voters voting on the measure 'relating to a Utility User's Tax i UPacketP`"'1:5 Wig;:, did not vote in favor of it, and that the measure was not carried, and shall not be deemed adopted and ratified. SECTION 5,: The City Clerk shall enter on the records of the City Council of the City of :.Grand Terrace, a statement of the 'result of'tiie election .showing` the whole number of votes cast and the whole number of votes given for and against the, measure. SECTION 6. The City Clerk shall certify the adoption of this Resolution and enter it into the Book of Resolutions. r N PASSED, APPROVED AND ADOPTED this 10th day of December, 2012. c 2 d w Mayor of the City of Grand Terrace 2 ATTEST: a Cn M T N, City Clerk of the City of Grand-Terrace .L. .E I, TRACEY R.-.MARTINEZ, CITY CLERK of the City.of Grand Terrace, °do-,f`ereby 'o certjity'cou' nb,il. that h;e;foregoing Resolution-was introduced and adopted`at a'regular meeting'of M th,e of�the City'of Grand Terrace held on the'10th.day of December, 201.3 by o the following vote: N w I' N AYES: NOES: a� w ABSENT: .2 o ABSTAIN: w d E Tracey R.'Martinez, City Clerk Z. APPROVED AS TO FORM: City Attorney 2 •f� _ �� ;CoiJntyatifSan`Be:rna�di'n'o. �777-Eastl2ialtoAveriu, - �� -�' a :, � CoinmiJnity-Seniices'Group_ Sari Berra'r"dXONSO in0,CA924:;1:5` n }Elctiwon. e- e, , • :I?tiorie;909 3878300'`. Fax 99.q 387=Z02_- Re' ist6W. f,M"tiers- ; :r,'S rC y �.T .' AR of s, 4.7 ;,ry x= !v�iv�iw.sb_countyelectonscom i 1lictinet'J L'sii .1:.,;:)�-M' t.�:3as:-� '=,.aes?:::�1;��' :='s:e� �- •?•�,;.,,.�..,-, _ e,,�._ -. c.__ -.-�-r•�,-� . .., +•cC:7. _- -. - a-raSa-tF-�;. :'s„ -, cFs-'d•:. =.a-:r,^i.r .:>.:x;.;-v,✓...; _ --- •.:�-. .TATENEiNT=OF:CERTIFICATION OF`EIE:CTIOl -RESULTS yj 2013'CONSOLIDATED.EIsECTION N STATE OF CALIFORNIA C CQUNTY OF SAN BERNARDINO ) w - y .Q s � GZ M O I;•mclh-el j e'llo ,Sari'Bernardino;Co%int Re istrar:of Voters .dol—A certi that- `�' 'iirsuarf t', t o h ovis oris oft1ie;CaTfomia;Elections.`Code, :1`5�0.0<et'se' I.did_canvass the '-:rettiiris�of=the.v'o�e c--`'s= ' id 2 j t'rt Q1�3'Corisolidafed.Election:he�ld,ori•-Novernber•�S_�iri�Sari ^-3 I�t , • ;;Be,: "dtn noun'= '--ana�� '�at.the'.•::er:�1,e, -�le� t �w ,i� ,lu�,.,,�..•a�t: .e: rear- i, o ty uth C .t f_d�E c�on.Resulfs o ,h cl�.t s.St em rit-is?attacfied,• .• o • show-'' �e�ot ".urilier.•��v •er.; ''n�� ,•B�m "1- r��h'� '.e sth t al<n .of,,ot s'cast i .San. ,e ardino County ;and._tha"t:theaota s�as's o:wn�ar .; • 'fill;-`ti�%e;;�an�;�correet. , ,. ., .'. ,, .`--. . - . _ .� ri U) 'Witness:my lurid and,off vial'seal:this:l3th.day',of November: s W sa Scarp" o., Registrar of Voters t ° � C -3 � � 5 'ro1+'.-i�.:!y-``e-.'.fir•:. !_,:P"" r,s.• n _:_j.:1[ti4x:Tlµ✓`-,\� '�y rr - - 'BOARDOF.SUPERVISORS ROBERL;/4 LOVINGOODcFirst.Distrlcf"%'JANfCE RUTHERFORD $ ori"d Vistrtct:':,SAMES'RAMOS,:ThIiE DlshicQ:GARYG Ovm Faurtt-Cct:6frl JOSlgGONZA m+• ,-_... _:, ,. _ - y' -- - .- '`GREGOR$CPDEVEREAUX;a]ilet Executive Otlit;er , Packet�P,g�°17 *e+ - - vfi.". •s . =..Canso' ate flectirri-: - ., ;m��`=�-�•-�� '�''- 4, ^'� _ -;Tip _,.�,•. . '' '.. Ot IMma ,e ort , - . _ - '-Sa?�'Be�narifino;.Count�► ., r�' :Registration&;Turnout. ;507.130 vote s; " , PreCi ct Tumoutn _ _ , 8 985' -1 7A Vote,byMail Tuinout a "96, -7,i08/o- M ,� �; :. � � - • ., Total. ?;44'890`- ' `8.85% � " ` ..CFiaffe`;kC`oniri�:Colie`eiDistrict,- - s:3951395.; "100�Q0%;- •- ,. ;, - .-. _.- .- .-. � •` 3=',^._ `tea' ItATMLEE "KATHY"BRl1GGER • 12"39 3644%. ZAFA S AN M- 8 278:: %24 KATIERQBERTS,Y 12;883'` y n38.701% 7 ; :Total. ;33 292 .700'80% N - BakerValfey USD_. - - - :-MI.GH ELi;JAKE'tGOOD AN _ r3 1:3:08ofo RAN�DY,'GOODMM' NATHAN CRANMER :32; 13 5.0 ° _GREG SEIFERT, 31 1;3'08%'' w R'D000HERTY-SH�RLEY: MARIA RAMQND 2$. -.r.,...-*N, DART ENE;BRACKEN sad, ttlsow: t- u ANN,:PR1�E.r `c36. 42:66% _ _ N ;55`, Total.a ti237,. OOia. •., ,ROM°:GLARK'. "NORMAN'"C._,ORFi9LL 170'' •i144,81/1' CRAIG=J:RSCHNf=IDE R 6;24 r %0 a308 Z 1._ . TtMOTHY;SMITH . Total:•:;. , =1a17AN 4: 1,00.00,9 DAN-WHALEN" :603y ;t;30,/o•q A AL:•MQ RRISSE T E T . 1',21:24°0,,. ,MARISF'OBEFjTS+' >§80- .49 Rq 'GATFYRACEg. A630, �2. 20°f' _v :GHE1F l fE'J.QHNSON ,7, . ITZ400'- W' Ti 2,971 -1QOOQ"/o' _ p� id ;Bi horn=besert:Y ew W 88AM J;LARR�!;COULOMBE 125 i22'36?k JU�DX,K.:;CORL=LOR,QNQ: 2326,/0 J DE~NNIS STALEY 153 27 37%; TERRY,BUR�KRXRT•' =1;51 27 Ot% Totai 559` 'Cr@sttirieSamtadan-Dis'trict-,�; ,,,- �;,,�,:;�..__�,��._-:.�,• - x> 1% a IKf�RENEi1MESSNE•r `�255;." `•23;iQ:1•/q` 4 ;JACKr P:;WINS, EW= ;326., :a30:T0°la.. r :r. . a. _.:. . KEN:NELSEN' �. v TOt3l.. 10§2 100 00%: = ' _ = ' 'S_ariaBe[nar'dino3G««"''3U5Dr _ �;-230T230` __'10000%' '' - ;>_- <f<AISARAHMED 3868" DANkY _ „;. TILIMAN 6322:, 2024"/0 SO'NIA F�ERNANDEZ BA.RBARA FLORES INS .fiJOIEWr=V�4RR0.,' .,.>::;=:n,:,,::; ABIGAILIf1 DINA65 . Noverritier,1:3;201:3 2 OS.RM. pa9. PaCke . 18 �i i1lovetnbe S,,2093. fir; - . Suirsmar Report ' ---- iS.a�i�Beenactlireo'Countji � 'Siirroma #5- iY. - San:Becnardino�CityyUSD,.(continued:;:} _- ,.! ;. _ • -230%230 %'I00006/0 ° JUDI PENMAN' ro Totalj S9.Cityr_NAayo�_ - - 1`Bfi%166� 10Q:00% "'� RICHARgT_.GASTRO o %:DRAYMOND';'DFL4Y".<.GRAINFORD 5 74Ai - :76�% �- MATT:,KO,RNER26 i J RICK`AVIIA. 1:4:93k 1161:%0 yi CAREY DAVIS o :3023 H:.1N-NICKEL ° O J WEN DY, `mcCAMMAP. V 303 i 24A3'/o_ KARMEL ROE. 288 224?0 W RIKKE°VAN JO m6N Total 92863i d0000°/q' as Za M IN SB.City.Ward ity Council__, 10000% Hf M JOHN J ABADzA 237 21 35"(0 0 :M1 i�_r,.,. _ ,tI VIRGINIA:HIARQUEZ fi25 "56:31% L _ • :Total:',,., '1,1:10 >�100:00'/° � ,• - .E ;y SB Gity,VVa�ii 2CityyCO,unciL' ":14/,14�. 100d0°Io jBENITOJ B%•1RRIOS � ,.. .-. - - ,: .. .. .-. - _. _ ., :i-::_ ,.�::_�...... _ 'O i ;ROBERTJENKINS. ' `0 ' Tota!: 11'36' -�i0000% N 1,s St3:City 1Nad 4 Gfy;Ciui%cil 36/,36j,' 100.`0%, y s = FS .FRED'SHORtETT± - s 4JA.YQ FINEGAR 11,571. sANlH'ONY'JQNES_ p :;9851 3:1dO6,Io _ C Total 3y171. 4]00:00%, SB Cify`'Rei alt•Jarnes:F:Penman Question _ 1661.1.66, 100,0 %0, W YES 7 730, 60 66% 3 ;. r 5Q13'{ ; 9;34% Total,.. 42 743i 100;009I9 ' :S_,B_.:Citl=To35ucceed James F.Pengian 1"6.61.1:661 100;QQ%O, I :GARYD'SAENZ` . 5;77) 5¢AO%u _A, IM`pR '4535, i00°! • - Total,: 10306� 100:00% � .v '� SBCitytYdard:3=RecalhJohn Veidivia'.Question .a, - - ,26%26.� �1OO;D06/° � Q i,� .YES; 42fi.. -37.6704 `T 100 00% SB-Gity„Wa�d:3=;To.Succeed John Valdivia, _2.6%26• . :10000% ROXANNE=tNIlL1AMS' - u 577 i 100 00% ' Total:. 577•� 10000'(c 4 ,SB City lFlaEd.7=Recalt.W®ndy A dbdim iiackbui`tion 1;71;tZ 100:00'/o y;_. 5;460 58 56 November 1:3;:20ti'3.;2:Q3 I?M. Pa _ PacketjPg;V1;9"` '=a `6hii dated Election [ ovembbt.,5 20`3 S`uiitnaty.Repot :' Sari;.B&riSrdino'Coun'ty Suriimary#5 ' pL 5B,City'Vl!a[d7 Recall,V1lendy:J,McCarsiMack'.Question,•:;(con#inued. ) , ;17(1:7• 9QQ;00%. �J 033 'NO. Total'. 2;493 A00i0b0° < , SB City.Wa�d 7�To Succeed Wendy:J:-�ItcCamiriack10000%_ 4 x..; c KNICK:GONZAL'EZ 1345- JQSHUA=D,`.WILLIAMSQN 162 765%°. 'MI,CHAEL"MIKE"THOMAS N ti FAIIL-W."SAN8012N 329 95:53% t :JIWi,MULVIfiILL 875 WesE Valley,WD 70/70 100 Total ;11NDA ,LYN-D`k,'GWPiZALEZ :981` t30;]B%p W J"CKIE'COX i572 17{•9'4% ' , . , DON MINCER. ;72$ ":�_• m : CLIFF..ORD YOUNG ;908 28.AT/a, ;pco tu, `total 3;1.89 .100 00% co f O ; Measure,C.;City of Geand"Ter'Sace,. ;8/8:• 100.000A. N °5932 �-39:421°='' =?Na r1 432 i60'58%o Total,.:: 2r364 ;City gt:Cfiino;. '• ;::_u.:;.. .j "YES' ;188`5 `is976"/0, ! t :NQ �817 30'24'%?' r' Total,: •?2 Z02 _100,'00W W e 0 , y EPJ _m (7 Novembey 1$:201.3;2:03 PM •fir,�.o -�- -- ; :�,_ �. Pf > ENDA-"'fNiEP:O=RT T. MEETING'DATE. Deeernber 101,201- Council&$uccessorAgency Item TITLE: Annual' F,nancial:, Report .and Related Documents .for Year Ended'June 30,'2012 PRES'ENTED'BY: Cynthia:Fortune,.Finance Manager RECOMMENDATION: Receive..and,fle the Annual financie l_Report and related do'curnents for the year ended June 30,'2012. BACKGROUND: Each,-:,Ot the City has an:independent audit,conducted,of,its fnancial`statements and related internal control procedures. The.audit-':for the year ended June 30, 2012 was delayetl due :to°a,turnover of,Finance ,17,e4pvart tent personnel in:date$2012 ;and°:ensuing challengo-,in closing the books. The audit has �now'tieen;completed and the Annual Fnk inancial 'Report'issued by the City's,auditor„=Rogers, Anderson.;a;4Malody & Scott, LLP. The various reports'are'dated jOctoter';1,; 2013., which represents the tlate Ythe audit workY;was completetl': . , - - "' f DISCUSSION: One `of tf a eke, as``acts ;of any annual,'friancial. audit is-;,tt e, Ind:e en4"'M Auditor's Y. P Y ; P Reporrt, which st=,provided on , age 1 of the Annual;Audit Report (Exhibit A} The Independei tu;Aud to Report 'provides."is ',:opinion ,on whether or not "thee fnancial statements fairly present;'in all rnate�ial.res`pects,'the respective financial position of the overnmentalacti�ites 'the` ;b;usiness a acfivi`ties each£ ma or fund and tl'e :a, "re'"ate rern`ainin �fund'.infor'66 fion'.as'of the'end,:'ofjafh`e;fsca'I eaf :and the<res`s active than es' in ifinancial ; ;osit'ion.g!.- ';cash flows+': where a ' licable,-�`,in:`confo�rrian'ce with 3, _ _£�, ; ,,,, • r� ` ,.-` ` P, re"ul in i'`i"General) Acre fed' A:ccopntin Prnc les GAA Th;e s t o n on I Y P 9 P`.. t ) 9 -p, either unqua"lifietl:or quahfietl ;The"opinion letter" resceived;by the`City for pits_financial s`taibments for tt :e period ended June 30, 2012As ll, uriquah6" :lh`tl sting, 3that the fnancial' statements afairly represent 'the City s fnancial position m' actor'dance with GAAF. :In,-addition,Ito.athe,Annual.finan,cial:'Report, a 61'' epeR,,ent auditor. ssues:otk e�=relatetl documents,,which aye sumMarged°Tbelow 7 Audit:Overview Lefler Exhib'it�B' 'Disco"s'`s`esLifihe auditor's:<res onsif ilitie_s under..Governin6n .A'uditin Standards '- and s n'ifcant issues enco'unteed dunri` ;the °audit'that warrant disclosure: Y.-.,g. ,. •- 9 Thee were°r%one, • fntefnal Control &:Com;plian.ce Report'(Exhibit4;C) 3•'J P cck Pg:�21= e T' '4 v h Identifies any material internal control deficiencies that impact the financial statements. None were identified. • Internal Contro.'I Recomme.ndations (Exhibit D) Provides . recommendations for strengthening or enhancing .internal controls. Three_(3) recommendations were made, which are summarized below along with the,related management response: Recommendation 1: Update the employee manual, includingf the establishment of a forrnal fraud risk policy. Management Response: Updates to the employee manual have been in progress over, the past several years and are nearing completion. However, given the current staffing transition and related change in employee work schedules, benefits, etc., as well as the potential shift to contract services,: this project will be put on hold until a new staffing plan is implemented. Final updates to the employee manual, if applicable, will include a formal fraud risk assessment policy. Recomrnendotf—',2: .Reconcile all bank accounts on a'monthly basis, including a secondary=review process. I Management Response: Due to limited staffing,and other work priorities, bank accounts were';not consistently reconciled'on a monthly basis during the fiscal year beijng audited,-and ;the process did `not include a secondary review. This is.sue:hasa:been=corrected with bank statements currently being reconciled to.the, g'eneral'ledger montfily`and includingt a-secondary review with the reconciliation being,.prepare'd by the Accountant'and reviewed by the:Finance Manager. i V ice.. Recommendation. 3: Establish a formal, written "policy concerning uneashed clecks:based'on`current State escheat laws. Management Response: A draft•policy has been developed and is currently under staff review. 'It is expected to be finalized by the end of the month for review and,approval by COU*nc I early next year. • Appropriations Limit Agreed-Upon Procedures (Exhibit E) identifies s,any 'exceptions to the Appropriation .(Gann) Limit .calculations. No exceptions were noted. FISCAL IMPACT: There is no fiscal impact associated with the receipt of the Annual Financial Report and related=document's for�the year,ended June 30, 2012. - :�Packet�P{ga22_ ATTACHMENTS: • Exhibit A_Annual Financial Report_6-30-12 • Exhibit B_Audit Overview Letter • Exhibit C Internal Control & Compliance Report • Exhibit D_Internal Control Recommendations • Exhibit E Appropriations Limit Agreed-Upon Procedures APPROVALS: z Cynthia Fortune Completed 12/04/2013 3:12 PM Finance Completed 12/04/2013 3:13 PM City Attorney Completed 12/04/2013 3:23 PM City Manager Completed 12/04/2013 3:37 PM City Council Pending �J PacketyP,g:<_`23' i l CITY OF GRAND TERRACE , CALIFORNIA w L i 0 Q. I ANNUAL FINANCIAL REPORT Year E n d e.d J u ne 30 2,012 o I I L4 a, a I ;x w �I c I s `R:OGE SPAN . j_ E=RS;OtV'=; �GlO D TT; LLP:. `CE:RTIF[-ED`PU:BLIC AC:CSJ:U:NTAN7 SINCE 1948� . } 5 I f•, _ City of Grand Terrace Annual-Financial Report For the year ended June 30, 2012 Table of Contents PAGE N .` Independent Auditor's ReportCO 1 Management's'Discussi,on and Analysis 3 w Basic Financial Statements � m GoVernment-Wide Financial Statements ' Statement of Net Assets 14 a Statement of Activities 15- Fund Financial Statements Governmental Funds Balance.Sheet 17IE Reconciliation of the Balance Sheet of Governmental Funds,to"the :.� 'Statement'-of Net'Assets 19 Statement of Revenues,Expenditures,'and Changes iriFund-Balances 20 ;¢: Reconciliation ofi a Statement of Revenue's, Expenditures; and Changes K} in Fund 13616nces,,of Governmental Funds to ih"e Statement of Activities 22 c 1 ;M Proprietary Fund Statement of Net Assets 23 c c. Statement of Revenues,'Expenses, and Changes in Fund Net Assets " 24 Statement of Cash Flows' 25 Fiduciary Fund U! Statement of Fiduciary:Net Assets 26 Statement'of Changes in Fiduciary Net Assets 27 �. Q Notes to Financial Statements 28 :5 .Required Supplementary Information Budgeta y'Compa'rison Schedule General.Fund 59 E Street Improvement Fund' ;60 . Re,evelpment:Agency Low-Mod Housing Fund 61 a 0- Nonni'. jor Goverritnerital;Funds Cor bininw alahce'Sheet 62 Combining Statement of Revenues, Expenditures, and Changes in Fund Balance's 65 '`Pacliet�Pg 25� OFR'SQN;::K.AL9pYA_,S,_C-_qT &,p T. 'G �4lt- 19.48, ERTI FIED:PU B'LIC ACCOQNTANT�,tl,A 7351t:1C.arnWe S lik 4.60, W.., 902 889 53VM IF ramscpai,etT -H--on he+, Wrabletity-'Cou,nbif h' `_ ' - 'City _ - ,Of,t Grand Terrace GraPARTNERS hd Si-bnda'L Odle,CPA,MST z Terry-P,'Shea,CPA LU Kirk-A.Franks.-CPA InddoenderitAuditpritRepblit Ma';t h6w'B.Wilsoh,CPA,MSA.CGMA Scott W,Ma!ItI6.CPA,C -MA EOptl Sh.-AVVIAg.CPA.MST;CGMA Jay H.Z&clier.60A(Pzirzn6r&n.eriws) W '--d'tL-d ;the accompahYing filhahbial -staterrieh'tt of. the 0 e, have. CL Phillip H,W.511.e,,-CPA(PIrOer Ernqrhds) us'ini.' vftigtekh:ma�or;fund, and 1,govefrnties I be-ss-tylibbbb fund 'i dpft�n remaining"MANAGERS. STAFF the aggregate Ot(Oh of-the City of Grand rh i 6 -'d J Ndicy&Raffei-ry.tPA.M.BA C-51ft "(0ay. as of an-,d for tfi6- year �ende prib 30, .. P - , ' '201-2 v, h _qfe-d Welebte, fPA MB� collectively I YS asIQAit- listed"n-Abb fennyL 'PA- S U- tdbI6-bf,,.b...6.fif6hts. Thptb.finandials_ta,teM p, tibilit.y.bf_th"e P�p�•Mitar`Tliaw CPA A J ' " UQyz vanageh h OLr'rp5pp-responsibility is _pXprqss!ppjpJqn _pp� thppp y.C_0A n b ed fik r addit, sp6ng-HydLA'Lft-4,`C6,MBA �Doti CPA�4 � _ --b6d dur dudif-fl:a -0ditin :pjhd'af-ds,b' t 1� tTtqnl. qqqr.,.,ppce with .6 g�gt hd-Llk' d d b5 Y4k.Eajig.CPA Dan let f.Tlirii ek.CPA,M5A' -idliab pqrht4in6d '11'ssUbd-b y cable to %'Va-C-PA.M�T fin --.c diti o vo rh n 0'01 ,A��0 S 'id D He%wqbod.'CPA Y_n I II& ;of "it d"S' "" -6-- -t D.6 IhO --Gb "P:i Gi�nbtdl IK67-Uh tat6§� Th__. � "', - , , V,'I - - -- 0 equiro 6�'0,14ftqn �pelprm,,th i, p-ditl-16, bt-j th d &�al qt_ CL A P material �M heft An Wheth 6'�',financial ;s %qt�nghts are free audit includes ;examining RKi-` 1, on- b test lo� evidence' suppgrtng: the nd asis, 'Ovic E j l en s. �,, n ,aillbUhl ;disclosure4-,16' --th-6 -`061400of -ktO m-4 h-_�`i it 4!sb 'T ,in ias assessing .the, ;za n-d-4he' significant " s m ie .made by management, as well as abh-g, .:the pVotalj 'LL • financial.statement presentation. 1Ne :believe :that .,UT ..audit 0!§ ;prof .reasb�q 4rv6dt-bpihi6r, tht fnancial'atatements';referred to above,present,fairly,in a all material ,,"respects; ancia pqsi ion-d the.governmental" iffiijm6ffal' the gOVq f_ .4X business *n �,,an e �e i ,app,fu ,c V b - `0 adtiviti e*kc�h, m activities, h 'a- '--t bi-n-ginhi,hg:fLfhd 5f-Ahb W a r m Magid;p _,gg r� MEMBERS u Arneriifivk'ills fitu tp--6 f -h a CeftfNed-Public Accoijnrp�nl:s flows E. a pees:rfle Ailt'PA Allf6nce b n p lfPA piriiis A6 discussed in Nbtei 1 'M there i%, fth� - - fbb§ftt 6hah�es in egis at'io hL df&dI fh' Rd I ,agencies- _ ' in e California.liforrfa Society of 4 -6 ,of 0alifofta wbldh require, ;of " d- eIow .CPrOIfidd Ru tic-Accoui ah agencies as.;of February 1r,2012. Including Redevelopment jqy"QA Gr avid Terrace. § .Y A ��51'W C �Z TRUST_ In accordance with Government Auditing Standards, we have also issued our report dated October 1, 2013 on our consideration of the City's internal .control over financial reporting and on our-tests-of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of£that report;is to describe the "scope of our testing of internal control over financial reporting and compliance and-the results of that'testing, and not to provide an opinion on internal'control•over financial reporting or:on compliance. That�re' port is an integral part of an audit performed in accordance with Government Auditing Standards and CMshould be'considered in assessing the results of ouraudit. 0 _^ M J Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary-comparison information, as listed on the table of contents, be presented to supplement the basic financial statements. Such information, w although hot! 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 y placing the basic financial statements in an appropriate operational, economic, or historical context We have applied certain limited procedures to the required supplementary information Q in accordance with auditingstandards generally accepted in the United States of America, which consisted of inquiries of management abbut-the methods of preparing.the information and comparing the 'information for consistency With management's responses to our inquiries, the 'C basic financial statements; and other knowledge we obtained during our audit of ;the �b'asic financial statements.We'do not expres's.an opinion or provide any assurance on-the,information ;i% because;tle limited,procedures,tlo not provide us withaufficierit'evidence�,to exprMess an'op.non �s or.pr'ovide any assurance. _ 'Our audit was cohducted ;for the purpose of forrning opinions on the`•'financial statements-that N collectively comprise the City's financial-statements as.'a whole.•The combining nonimajor fund c financial -statements are presented 'for purposes of additional analysis and are not a required part of the financial stateih'e s'. The combining ,nonmajor,fund financial statements are the responsibility of management and, were derived from aynd relate dirddtly to the �U,hderlying a accounting and other records used ;to"prepare ,the financial statements. The information "has been;subjected to-the,auditing procedures applied in the audit of-the'financial-statements and certain ,additional 'procedures, ;including comparing :and` Oconciilrig such!inform atioh-direetly to '� b 'c the,und'erlying'accounting another records used-to,prepare the'financiai_'�stat6 rients or"to the financial statements themselves, and other additional>procedures in accordance with auditing standards generally accepted in the United States of America.•.in our opinion; the information is fairly stated in all material respects in relation to fhe financial statements as a whole. C . Qi ��.ut,eJ �t'n cL4,t,a o�. -:�c�rorl y t So�T C�i� • x W San-Bernardino, California c October-', 2013 0 r � a -2- r'Packet.Pg27' . r-- Management's Discussion and Analysis The following discussion and analysis of the financial performance of -the ,City of Grand Terrace provides. an overview of the City's financial activities for the fiscal year ended June 30, 2012. The, information presented herein should be considered in conjunction with the City's financial statements identified in the accompanying table of contents. Using the Accompanying Financial Statements 0 Included in the accompanying report are fund financial statements. For governmental activities, the fund financial statements tell how these services were financed in the short term as well as what remains for future spending. Fund financial statements also report the City's operations in more detail W than the government-wide statements by providing information about the City's,most significant funds. R d Overview of the Financial Statements 0 CL The annual report consists of four parts - management's discussion and analysis (this section), the basic financial statements, required supplementary information and an optional section that presents combining statements for nonmajor governmental funds. The basic financial ;statements include two kinds of statements that present different views of the City: 0 ii ■ The first two statements are,'government-wide financial statements that provide both long-term �a and short-term'information about the City's overall financial status. _ Q ■ Tke ;remaining statements are fund financial statements that focus on individual parts of the - City government, reporting -the City's operations in more detail than the government-wide statements. •; c� i • The governmental funds statements tell how general government services like public 0 safety were financed in the short teem as well as what remains for future spending. • Proprietary`funds statements offer short and long-term financial information about the activities the government operates like a business. ii • Fiduciary fund statements provide information about the fiduciary,relationships - like the �. agency funds of the City'- in which the City acts solely as agent or trustee for the benefit of = others, to whom the resources in question belong. ¢� The financial statements also include notes that explain some of the information in the financial B statements and provide more detailed data. The statements are followed by a section of required x supplementary spreadsheets that provide additional financial and budgetary information. w Reporting the City as a Whole 4E - t The, accompanying government-wide financial statements include two statements that present a financial data for the City as a, whole. The Statement of Net Assets and the Statement of Activities report information about'the-.City as a whole and about its activities. These,statements include all assets and liabilities using the accrual basis of accounting, which is similar'to the accounting used by most private-sector companies. All of the current year's revenues and expenses are_taken into account regardless of when cash is received or paid. -3- ,Packet �3Da These two statements report the City's net assets and changes in them. The City's net assets - the difference between assets and liabilities - are one way to measure the City's financial health, or financial position. Over time, increases and decreases in the City's net assets are;one indicator of whether its financial health is improving or deteriorating. You will need to consider,other.:nonfinancial factors,'however, such as changes,in the City's property tax or sales tax base ah-d,the condition of th`e City's roads,to assess the overall health of the City. The Statement of Net Assets and the Statement of Activities are divided into two kinds of activities: r o M ■ Governmental activities - Most of the City's basic services such as public safety, streets and roads, 'economic development and parks maintenance, are reported here. Sales taxes, property taxes, state subventions, and other revenues finance most of these activities. w L ■ Business-type activity - The City charges a fee to customers and budgets expenses so it } covers all costs of services accounted for in this fund. 0 CL The government-wide financial statements include the Community Redevelopment Agency of the City of Grand Terrace (for the 7 month period prior to dissolution on January 31, 2012) and the Grand Terrace Public Financing Authority (component units), along with the City of ;Grand Terrace (the 13 primary government). Although legally separate, "these component units are important because the City is,financially accountable for them. LL Reporting,4 'City's Most Siignifican't Funds The fund financial statements provide detailed information about the City's most significant funds - not N the City as a'.- Some funds are,required to fie_established by State law'or,by bond covenants. c However, `City Council establishes many other funds to help it control 'and ;manage money for particular.purposes or to show that it is meeting oversight responsibilities for using•certain taxes, grants, or other money. The City's two kinds of funds - governmental and proprietary _ use different A accounting approaches. ■ Governmental:funds - Most of the City's basic services are reported in governmental funds, --'� which focus,on how money flows into and out of those,funds and the balances left at year`end h ,. that are available for spending. These funds are reported 'using the modified accrual ii accounting method, which measures cash and all other current financial assets that can readily"be convected to cash. The governmental fund statements provide a detailed short-term view of the City's general government operations and the basic services it provides. ¢i Governmental fund information helps you determine whether there are.more or fewer financial Q resources that can be -spent in the near future to,finance the City's programs. Both the governmental fund balance sheet and the governmental fund statement of revenues, x expenditures, and changes in fund balances provide a reconciliation to facilitate this W comparison between governmental funds and governmental activities. ■ s Proprietary funds When the City charges customers for the `services it provides, these secvicese are generally reported'in proprietary funds'. Proprietary funds are reported in the w same way that all activities are reported in the Statement of Net Assets and.the'Statement,of 4 Activities. .In fact, the, City's:enterprise fund .is -the same as the business-type activi ti es we report in the gover'nrhent-wide statements, but provide more detail•and additional information, such as cash,flows, for the proprietary_fund. We do not-use internal service funds (the other to facilitate'this comparison between governmental funds and governmental activities. -4- I?acket°;PI ,29 Reporting the City's Fiduciary Responsibilities The City is an agent for certain assets held for, and under the control of, other organizations and individuals. We exclude"these activities from the City's other financial statements because the City cannot use these assets to finance its operations. The City is responsible for ensuring that the assets reported in'these funds are used for their intended purposes. Government-wide Financial Statements ' o As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. At June 30, 2012, net assets for the City of Grand Terrace were $22,658,822 compared to net assets of$29,590,203 at June 30, 2011. w L cc A summary of the government-wide Statement of Net Assets at June 30, 2012,and June 30, 2011 are y as follows: 0 Table 1 Net Assets Governmental Activities Business-type Activities Total o 2012•, 2011 2012 201i1, 2012 2011 _ IL Current and other assets $ 8,494,845 $ 42,481,575 $ 2,429,343 $ 2,580,411 $ 10,924,188 $ 45;061,986 Capital assets,net 11,486,796 11;425,206 5,239,688 51328,258 16,726,484 16,753,464_ Total assets 19,981-'641 53;906,781 7,669,031 7;908,669 27,650,672 61;8.15,450 Other liabilities 3,598,975 4,514,862 518,064 798,172 4,117,039 5,313,034 Long-term liabilities 874,811 26,912;213 - - 874,811 26,912,213 Total liabilities 4,473,786 31,427,075 518,064 -798,172 1 4,991,850 32,225,247 Invested in capital C assets,net of debt 11,458,989 9,441,365 5,239,688 5,328,258 16,698,677 14,769,623 'C. Restricted 4,103,744 31,421,417 - - 4,103,744 37,421,417 0 Unrestricted - .(54,878) (24,383,076) 1,911,279 1,782,239- 1,856,401 (22,600,837) Total net assets ;$ 15,507,855 $ 22,479,706 $ 7,150,967_ $ 7,110,497, ,$ 221658,822 $ 29,590,203 c iL $16,698;677 (73.7%) of.the net assets reflects the City's investment in capital assets, less any related debt used to acquire those assets that are still outstanding. Since these assets are used to provide = services to the citizens they are not available for future spending. An; additional $4,103,744 al represents resources that are subject to external restrictions on how they may be used. a w x w c E s w a -5- A summary of the government-wide Statement of Activities for the year ended June 30, 2,012 and 2011 are as follows: Table 2 Changes in Net Assets Governmental Activities Business-type Activities Total 2012. 2011 2012 2011 2012 2011 Revenues and transfers c Program revenues: co Charges for services $ 1,407,809 $ 1,472,183 $ 1,604,588 $ 1,486,213 $ 3,012,397 $ 2,958,396 Operating contributions = and grants 559,490 884,198 - - 559,400 884,198 W Capital contributions and grants 708,163 740,808 - - 708,163 740,808 0 General revenues: Property tax 3,843,700 7,878,434 - - 3,843,700 7,878,434 G Sales tax 889,422 868;099 - - 889,422 868,099 m Motor vehicle in lieu 6,519 64,147 - - 6,519 64,147 Othertaxes 821,010 580,771 - - 821,010 580,771 Sale.of property 358,374 - 358,374 Other'revenues 538,096 220,438 .5,267 10,357 543,363 230,795- ' Transfers 131,440 107,939 (131,440) (107939) - - Total revenues `r and-transfers 9,2641023 12,817;017 1,478,415 _ ;1,388,631 10,742,438 14,205,648," _ Expenses Q General government 1,397,889 1,377,335 - - 1,397,889 1,377,335 -N Public safety 1,927,217 2,103,407 = - 1;927,217 2,193,407 • r Public works 1,369;119 1,826365 1,369;1-'1.9 1,826;365 CO) Economic development 585,469 3,499,728 - - 585,469 3,499,728 ml Cultural and recreation 1,279,189 1,349,274 - 1-,279,189 1,349,214- C Interest on long-term debt 137,523 1,113,023 - - 137,523 11,113,023 Waste water disposal - - 1,437,9.45 1,397,633 1,437,946 1,397;633 Total__expdnses 6;696,406 11,359;132 1,437;945 1,397,633 8,134,351 12,75.6,765,E Extrao fdinary.item :IL Loss on RDA dissolution (9,539,468) - - - (9,539,468) - Change in net assets (6,971,851) 1,457,885 40,470 (9,002) (6,931,381) 1,448,883 Beginning net assets 22,479,706 21,021,821 7,110,497 7,119,499 29,590,203 28,141,320 al Ending net assets $ 15,507,855 $ 22,479,706 $ 7,150,967, $ 7,110,497 $ 22,658,822 $ 29,590;203 B .x W C The increase or decrease in net,assets can provide an indication as to whether the overall financial position of the;City;impr,.,oved or deteriorated during the year. From-operations, total het-assetsfor the City deceased by $6,931`,381 duffing ,the 'fscal year. Taken separately, governmental activities..net assets decreased by $6,971,851 while business-type activities net assets increased°by $40;470. Q Total ,experfses of .$8,1.3.4,351 were offset by total revenues �of In `th e,.$tatement,of . - Activities, expenditures do riot include the cost of lasgets capitalized during the year or=payments made on principal of,outstanding debt. Depreciation.is shown for governmental funds on this-table, 'but the expense'is not recorded in each individual fund. -6- 1 ;Packet Pg 31 7 After the-deduction of Capitalized assets, the nex t component in changes to net-assets is the actual increase or decrease in fund,b a"lancbs resulting'from operations. .For.'Oiern talfunds there fl men was, a net decrease 6f,$32,939,663. 'Of this amount, a,pet.�bprea8e of$�"-531,894 is aWlbuiable to .� - .. 1.-1 5 funds,'-I 4 . . . , , of _ - ,the Ag 61h'p'y'', 'a"net increase 6f ,$82,980 6.th'-p no major net increase of n -a ne ousind''Authbrity,a - ' - $1.1626,DQ7 to t'he H net de' �rba`s6 of$1,6`,� - MI n 5l6tfie,Strbbt1 proveine' tFUnd., Affi the difference being a- net increase to the General Fund'�&$584,931.. Property taxes.-decreased by 51 percent primarily due to the dissolution of,the former City of Grand Terrace Community .Redevelopment Agency. Property taxes distributed to the Successor Ag ency. was reported in the Successor Agency Trust Fu'hd'effective February 1, 2 1 0121 It is no longer part of the City's tax revenue. a U4 Motor vehicle in lieu revenues decreased by 90 percent due to the State of California's approval of trailer bill (Senate Bill 89), which eliminated the direct-allocation of Motor Vehicle License foe 'revenue to local governments. Interest on long-term debt expense's decreased by 88 percent primarily due to the transfer of all former City of`'Grand Terrace Redevelopment Agency obligations to the S6ccessor Agency Trust Fund as of February 1. 2012. 2 cts Extraordinary item losses totaling $9,589,468 is due'to the dissolution of the formOr City of-Grand Terrace Community;°Redevelopment Agency, as of Jahu?r 31,'2012 -assets dhd,1'1ia'bil'i_b6s 7a rop6rtpd in governmental activities were transferred to a fiduciaryrvfund to-account-for activities of the' Z. Successor'-Ag ency. Governmental Activities The following'-table shows the cost of each of City's Major programs and their.-net -Cost after- subtracting fees and other `direct t revenue I generated by tfie activities' ., Jhe not cost reflects the J ,o financial burden'that was placed on the City.taxpayers.by each of the otog'rams. j(D' tutc4t'of qpvdinni&httd Activities 410 LL Total Cost , Net Cost 'ToW-Cost I ;C.a ..of Services of,Sdrvices of Services I of Services General-governm'ent 1,397,889 $ 1',349,950 $ 1,377,335 $ 1;288,419_ C Pbblic i6fety 1 927,217 1,028763 2,193,4071 1,,965;978 .< ,Pyblic works 711,801, 1,826,365 207j380 Ecdfi6tnic deVelopment 585,469 414,005 3,499-728 3273,14-0 X Cultural and recreation 1,27P,189 -3789.02 1,349,-2�7'4 4 1'4,`60' 3 U i lhiter6st on lorho7t e r'm'-d,e b t 137,523 137,523 1-1 1 3 0%;,2-3, .1,113;023 Total, :6,'606,406 $ 4,020;9,44 11,359,132 .8,26,1,643 This table shows the cost o.f 611 goverhfrien-tal,activities this year was,$6;696,4 16 General lax dollars erqehf of 669t. Fees,,grants and cofitfibutiph funded tfie,baIa'n_-ce'oi -paid for ap0r6kiM_6i(.jly,8� p Fee -the cost of,governmental.activities: Revenues by Source -Governmental Activities $9,2641023 Otherrevenues Transfers 100 Chargesfor J Othertaxes services 04 9% 15% M Motor vehicle Operating in lieu contributions = 00 W 0 and grants � 6% } Sales tax Capital 10% contributions P�opertytax'L and grants 41% 8% •_ .c' LL. -Expense's by Function -:Governmental Activities -$6;696,406 Inte66ston :Q Cultural and Tong-ter.m General N recreation .debt government :c 1 19% ;200 . 21% •u�i io • c .;c. Economic ;u development 9% c c =ai a r Public safety 29% x Publicworks'` W, 20% ;a) A a -s- • `Packet:Fg;.33 '3:D:a_ Business-Type Activity Total revenues of the City's business=type activities, which consist only of the` Waste Water Disposal Fund, were $1,609,855. Revenues increased by $113,284 or 7.6 percent in fiscal year 2011 - 2012. Of this amount, operating revenues increased, by 8.0 percent and-investment earnings decreased by $5,091. Expenses increased by$40,312 or 2.9 percent from $1,397,633 in fiscal year 2010 - 2011 to $1,437,945 in fiscal year 2011. - 2012. The cost of waste water disposal: by the City of Colton amounted to $1,185,731 or 82.5 percent of total operating expenses. o Expenses and Program Revenues -Business-type Activities c w L, -- ca 1,500,000 : �7":' - 0 o CL 900,000 - _ """ - --- --_ - rOpeorating Expenses 600,000 : 'J -- — = ting Revenues 300,000 Waste Wke 'Treatment • c ,c, Major Funds a As noted earlier, the City uses fund accounting to ,provide proper financial management of the City's resources and to demonstrate compliance with finance-related legal requirements. "Major Governmental Funds: The General Fund is the main operating fund -of the City. At the end of the current fiscal year, unassigned fund balance of the`General Fund increased $584,981 to $786;960 from a fund balance of $202,029 at June 30, 2011. Total fund balance in all Governmental Funds was`$4;871,361. LL• General Fund Revenues and Expenditures amounted to: c Increase Qi (Decrease) in r 2011-12 2010- 11 Fund Balance Revenues $ 4,586,608 $ 5,544,275 $ (957,667) w Expenditures (4,649,554) (5,160,094) 510,540 Other•Sources (Uses) 647,87.7 568,843 79,034 Net Change in'Fund Balance '58$931 •.953,024. (368,093) ;_ Beginning'Fund Balance, as restated 202;'029 9� 9 (750,995) 953;024 � Ending Fund Balance $" 7,86.960 $ 202,029 ;,$ 584931 Q -9- " Packet;(Pg:34 The significant highlights in activities, revenues and expenditures of the City's General Fund from the prior year are as follows: • General Fund revenues and transfers in exceeded expenditures and transfers out by $584,931. Total fund revenue decreased-by $957;667 or 17.3 percent from FY 201`0 -11. The decrease was-primarily due to the marked decrease in revenues classified as "other" which went down to only $307,847 in FY 2011 -12 from $1,225,545 in FY 2010 -11. Total N expenditures decreased by $510,540 from FY 2010 -11 primarily due to budget reductions. c Other Sources and (Uses) increased by $79,034 compared to FY 2010-11. The increase was M primarily due to one time revenue recognition. d • Property tax received decreased by only 0.5% percent from $1,389,542 to$1,382,935. w L • Sales tax and Sales tax—in-lieu increased 11.0 percent from $868,090 to $963,438. • Motor vehicle in-lieu tax decreased by 89.8 percent from $64,147 to $6,519 due to the a elimination of the direct allocation of the motor vehicle license fee revenue to local governments. �a Z • Charges for services overall remained close to the previous year at.$1,103,323. Building and Planding,fees decreased .2.7%,to $1,49,589 from-only in in FY 2010, -11. ,Child Care LL Center revenues actually decreased 5.0 percent to$878,700 from$925,419 in FY 2010-11. _ _ • Use of money and property category decreased by 49.84 ercent to-$40,941. a N V_ General Fund recognized one time revenue of$358,373 in FY 2011 -12 consisting of: M • $116,548 Sale of monopole lease-located at.Rollins Park to • $241,825 Sale of monopole lease locate at Grand Terrace Fire Station No. 23 c - Q • General Fund overall operating expenditures decreased a net 9.9 percent over the prior year, due to-variods "budget reductions. The City-is continuing many budget red uction-measuf-es t° instituted in,previous years such as a A 0,�perceht employee.salary furlough, elimination and deferral of some employee benefits, deferral of merit increases,',,accounting 'changes and = reallocation'of some employee salaries to other funds., Total law enforcement expenditures equate to 38.1 percent of the,net General Fund .operating expenditures. The next largest = General Fund cost center is Child Care Center representing 18.0 percent of net General Fund Q operating expenditures. a Other major-governmental funds include the Street Improvement Fund, the Housing Authority Fund, the Grand Terrace Community Redevelopment Agency Low- Mod Fund, the Grand Terrace w Community Redevelopment Agency Debt ;Service Fund, the ,Community Redevelopment Agency 1 Capital Projects Fund and the Community.Redevelopment Agency Project Trust Fund. E . The Street Improvement,Fund which became a "major fund in FY 2011=12 has a net change of a negative $1,636 during the fiscal year. Q The fund balance of the Housing Authority Fund increased by$1,926,007 over FY 2010-11. This fund accounts for the housing assets as a result of the recently dissolved community redevelopment agency of the City. -10- "Packe`t'°Pg 35' i Grand Terrace Community Redevelopment Agency — project improvement costs in the current fiscal year include the following public benefit projects: • Construction of a new baseball field at Pico Park to replace one of the fields-$27,625 • Construction of street and landscaping improvements, Michigan Street, Barton Road, and La Paix-$158,776 Long Term.Debt —the Grand Terrace Community Redevelopment Agency made lease payments to c Zions Bank in the amount of$127,423 under an underlying debt assumption related to the refinancing of the 1997 Certificates of Participation and made payments of$1,788,424 for debt obligations of the 2004 CRA Tax Allocation Bonds. The Agency also made interest payments totaling $266,153 for the 2011 Series A and Series B Tax Allocation Bonds. Principal payments of long term debt are not W shown in the government-wide statements. _ d Pass-through payments —the Grand Terrace Community Redevelopment Agency made contractual and statutory payments to overlapping taxing agencies in the current fiscal year in the amount of Q. $1,357,122. The total includes a statutory pass-through payment to the City of Grand Terrace in the amount of$78,107. Nonmajor Funds ii The Nonmajor funds, as listed in the table of contents of this=report, i'riclude Gas Tax, Measure I, the Capitalnlmprovemerrt Funds, and most of the special revenue funds. Fiduciary Funds - Fiduciary funds are used to account for resources held for the benefit of paities outside the City. In •; these cases, the City 'has a fiduciary responsibility and is acting as trustee. The Statement of Fiduciary.`Net Assets, included in.the;Basic.Financial Statements, separately reports all of the _City's o CL s fiduciary activities are reported in separate statements of fiduciary net fiduciary activities. The City' assets and statement of changes in fiduciary net assets (Successor Agency of the Former RDA only). Fiduciary funds,-are not reflected in the government-wide financial statements becauselhe resources Z of those funds are.not available to support the'City's,own'programs. However,.the.City_is responsible a for ensuring that the assets 'reported in these funds are'used for their intended purposes ;S Capital Assets _ _ ' a As of June 30, 2012, the City had invested $16,726,484 in a broad range of capital assets, including a� buildings, parks and park improvements, computer and maintenance equipment, vehicles, sewer collection systems, streets, sidewalks 'and storm drains. We are exempt by provisions of GASB Statement No. 34 from including the valuation of old city infrastructure. w w E Fa, Q -11- `P:acket�P'g':,,36 Capital Assets (net of depreciation) Governmental Activities Business-type Activities Total 2012 ',2011 2012 2011 2012' 2011 Land $ 2,177,069 $ 1,579,379 $ - $ - $ 2,177,069 $ 1,579,379 Buildings 3,680,334 3,835,936 - - 3,680,334 3,635,936 r Improvements 1,930,767 2,128,609 147,493 155,921 2,078,260 2,284,530 M Equipment 180,167 210,531 - - 180,167 210,531 Vehicles 100,540 126,430 - - 100,540 126,430 Infrastructure 3,120,087 2,720,067 - - 3,120,087 2,720,067 22 Sewer mains - - 2,775,081 2,819,782 2,775,081 2,819,782 w Sewer laterals - - 1,391,871 1,412,881 1,391,871 1,412,881 Sewer manholes - - 925,243 ,-939,674 925,243 939,674 �. Construction in progress 297,832 824,254 - - 297,832 824,254 n. .d Total $ 11.,486,796 $ 11,425,206 - $ 5,239,688 $ 5,328,258 $ 16,726,484 $ 16,753;464 WI t ,c Long-Term Debt ii At the end of the current fiscal year, the City had debt outstanding of $874,811. Of this amount, $27,.807 represents outstanding leases,-and $847,0,04 other de`bt 'comprised of an OPEB obligation a and compensated absences payable:$88,377 of all debt is due and payable,witfiin one year. With the N dissolution of the City of Grand Terrace Community Redevelopment Agency, its-Successor Agency c `— has .taken over debt obligations totaling $ 24,603,020, comprised of $22,755,000 in bonds payable C? and $ 1,848,026 i0ease obligations as of February 1, 2012. 1 .o a Outstanding Debt Governmental Activities L) ,_ �a c . 2012 2011 m 2004 Refunding tax allocation bonds CRA $ - $ 3,650,000 2011 Tax allocation bonds,Series A - 15,175,000 = al 2011 Tax allocation bonds,Series B - 5,650,000 a OPEB obligation 604,724 444,393 _Leases payable 27,807 1,983,841 Compensated absences 242,280 264,959 ,.ly Total outstanding debt $ 874,811 $ 27,168,193 E The City's total debt decreased by$26,293,382 (97 percent) during the current fiscal.year, mainly due Q -the transfer of debt obligations of -the Grand Terrace Community Redevelopment Agency to its Successor Agency during the fiscal year. The City adopted GASB Stafement No. 45 and recognizes a liability of$604,724 for retiree health benefits. -12- "PacketrPg.37.�3 Additional information on the City's long-term debt can be found in the notes to the accompanying financial statements. Budget vs. Financial Statement Differences Financial reporting is required to be presented in accordance with governmental and generally accepted accounting principles. There is no similar requirement for budgeting for governmental agencies. The majority of items relate to transactions of long-term debt, capital items and other timingCD r items. Contacting the City's Financial Management W 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 show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact the Finance Director's Office, at the City of Grand Terrace, 22795 Barton Road, Grand Terrace, California Q. 92313, or call 909-824-6621. This report and other information are also available at the official city website at htti)://www.cilyofgrandterrbce.org/. 2 c c� c 4- 0 a m �a c LL I = ,_ QI Q r Z X W C d � Q i -13- v;Ra38-- f, --I S N 'a A� cD fD sv fD 7 .t O 7 p1 Attachment: Ezfiibit A_Annual Financial-Report_6=30=12'..(Annual`Financiaf Report-Year Ended 6/30/12) f f7 0 m 0 cD 0 Crt C m -n 7 0 of - rt m N 7 rt N r- O c7Dti Attachment-ExhibitA.-Annual Firianciaf Report wt= r .(Annual Financial Report-Year Endei ' F.._. — J. N Al - N fD ty - 01 m o, LU ��Y : Attacl m`ent-'r hibit A Annual-Financial°Report_6=30=12'(Annual:,+F.inancial,Report-Year Ended 6/30/12) �� ' i r y of Grand Terrace SCittatement of Nef Assets June 30; 2012 • I Governmental Business-type Activities Activity Total ASSETS Cash and investments $ 6,245,189 $ 2,353,475 $ 8,598,664 N Interestreceiv6' 1' 1;594 57,1 2,165 c Accrued revenue 25,788 75,297 101,085 Due from other governments 811,800 - 811,800 Prepaid expenses 22,463 - 22,463 Loans receivable 78,$45 - 78,845 w Notes receivable 669,000 - 669,000 Property held for resale 640,166 - 640,166 >- Capital assets: Land and construction in progress 2,474,901 - 2,474,901 .0 Other capital assets, net of depreciation 9,011,895 5,239,688 14,251,583 02 Ta Total assets 19,9811-641 7,669,031 27,650,672 _ LIABILITIES U' Accounts payable 233,866 18"82-1 2U; 87. Insurance payable 11-4;2'1.5 - 114,215 c. Accrued,1iat ilities 26 343 8,1,83. 34.,526 a= Due to other,governments 3,219,088 491;060 3,710'948 Refundable deposits 4,663 -.� 4,663 Noncurrent liabilities: " Due within one,,year 88,377 - 88,377 Due in more than one year 786,434 - 786,434 -COL AV Total-liabilities 4;473,786 51a,064 4,991;850 �. NET ASSETS {`_ •Invested in capital assets, net of related debt 11,458,989 5,239,688 16,698,677 - Restricted for: Community development 446,648 446,648 = Low-mod income housing, 1,926,007 - 1,926,007 QI Public works 1,731,089 1,731,0$9 _. Unrestricted (54,878) 1,911,27,9 1,856,401 w Total net assets $ 15,507,855 $ 7,150;967_ $ 22,658,822 d a The'accompanying notes are an integral part of these financial statements. 14 j I _ _ City.of Grand'Terrace Statement of Activities For the year ended June 30,20.12 P.rograrn,Revenues "OpeFating Capital Charges'for Giants'and Grarits'and Functions/Prowams Expenses Services= Contributioris COntVibutionS M Govenhmental activities: General government $ 1,397,889 $ 47;939 $ - $ - Public safety 1,927,217 75,097 152,263 671,094 = Public.woeks 1,369,119 213,022 407,227 37,069 w Economic development 595,469 171,464 - - Cultural and"recreation 1;279,189 900,287 - - Interest on long-term debt 137,523 - - - 0 a Total governmental activities 6,696,406 1,40.7,809 559,490 708,163 a) Business-type activity: Waste water disposal 1,437,945 1;604,588. - - Total ;$,. -.0,.134,351 $ ..3,0.1.2 39.7; $ :559,490_ $,: ,7,08,163 Generalfevenues: a Pi opetty`takes,16vied for general purpose's N Property taxes,tax increment;restricted :T 1 Franch_ise`taxes CD Sald's taxes ion .Motgr vehicle in lieu taxes c Public service taxes �• Use°of money and property Other Sale ,of Property Ezteaodinary item_ -loss on dissolution_ of'redevelopment agency Transfers LL' Total general revenues and transfers Change in net assets Q Net assets-beginning s _ w Net assets-ending Q The accompanying notes are an integral part of these financial,statements. 15 _ I 3Da� I l Net(Expense) Revenue and Changes in Net Assets Gover•ri•rrierital Business-type CVActivities Activity Total c $ (1,349,950.00) $ - $ (1,349,950) (1,028,763) - (1,028,763) c (711;801) - (711,801) w (414,605) - (414,005) (378,902) - (378,902) (137,523) - (137,523) 0 CL (4,020,944) - (4,020,944) ` I - 166,643 166,643 � LC _., - I C 1,378,411 - 1,378,471 Q, 2,465229 - 2,465,229 568,844 - 5618,844 889,422 - 889,422 � t,519 C i 252,166 - 252,166 -° 16,1'03 5,267 20',370 522,993 - 522,993 7R 358,374 - 358,374 (9,53%468) - (9,539.,468) 131,440 (131,440) - ii (2,950,907) (126,173) (3,077,080) c C Qi (6.,971,851) 40,470 (6,931,381) Q 22,479,706 7,110,497 29,590,203 '2 x $ 15,507,1855 $ 7,150,967 $_22,658,822 w I . s I � �a w Q I The accompanying notes are an integral part of these financial stateme,,nts. 16 i - N L11 . (Q fD CD cr p1 O N O O , 7 , .01 S` - 'IMP - (C11`� - ,Attachment:;Eichibit A Annual•Finandial-Report_6=30-12;(Annual Finan-dial'Repprt=Year Ended'640112) } t. � 1 Q. �1 n CP rF CD 3 C rt CO) Attachment"- xhibit A_Annual Financial Report-6 (Annual Financial Report;.Year Ender !0/12) City of Grand Terrace 'Balande Sheet Governmental Funds _ t June 30, 2012 N Special Revenue Funds o Redevelopment Street Agency to .a General Improvement Housing Authority Low-Mod M ASSETS = Cash and investments $ 3,966,516 $ 1,296,863 $ - $ - W Interest receivable 1,068 315 - - d Accrued revenue 16,555 - - - Due from other funds 86,305 - - - Due from other governments 247,451 - 448,636 - Q. Prepaid expense 22,463 - - - Advances to other funds - - 168;205 - Loans receivable 364 - 78,481 - Notes receivable - - 669,000 Property held for resale - - .640,"166 -LL Total assets $ 4340,722 $ 1,297,178 $ 2,004,488. $ LIABILITIES AND FUND,BALANCES _ Liabilities: Q Accounts payable $ 139,594 $ - $ - $ - C141 Acc'rued.liabilities 24,779 Due to other funds Due.to other governments 3,219,888 - - - =�1 Advances from.-other funds 168;205 l7eferred revennue 1;296 - 78,481 - d CL Refundable deposits - 4,663 - - Total liabilities 3;553;762 4,663_ 78,481 Fund balance's: _ IJ. Restricted for: Public works - 1,292,515 - - 3 Low-mod"income housing - - 1,926;007 Community development - - - - al Unassigned 786,960 - - - Q Total fund balances 786,960 1,292,515 1,926,007 - M s X Total liabilities and fund balances $ 4,340,722 $ 1;297,178 $ 2,004,488 $ m -.'E t . t� . Q The accompanying notes are an integral part of these financial statements. 17 �P;ackef Pg_47=�� . I N Debt Service Fund Capital Project Funds Total Redevelopment Redevelopment Redevelopment Non-major Total Agency Agency Agency Governmental Governmental Debt Service Capital Project Project Trust Funds Funds .a $ - $ - $ - $ 981,810 $ 6,245,189 W - 211 1,594 - 9,233 25,788 (D - 30,437 116,742 - 115,713 811,800 C - 22,463 C, 168,205 78,845 T 669,000 640,166 $_ - $ - $ 1,137,404 $ 8,779,792 LL' c Q $ - $ - $ - $ 94,272 $ 233,866 - 1,564 26,343 - 116,742 116,742 - 3,219,888 COI - 168,205 = 58,947 138,724 a - 4,663 271,525 3,908;431 co .v cc c LL 438,674 1,731,089 1,926,007 = 446,648 446,648 (19,343) 767,617 Q 865,879 4,871,361 :$ $ - $ - $ - $ 1,137,404 $ 8,779,792 .LLI ' •t • .tt so w � Q The accompanying notes are an integral part of these financial statements. 18 P.icd-t_Pg:48 w @ � 2 . m k . . a § � � a 0 g_ � \>j - � - . �[ . . ®\ j A mcfiMenl �x6ibif=Annua[mnancm[Re#6R--0$2 Ahnua| mnBn m|#e ort-Y a Ended 6/3 1 2 ( /\ i City of Grand-Terrace Reconciliation of`the.Balance Sheet of Governmental Funds to the Statement of Net Assets June 30, 2012 Fund balances of governmental funds $ 4,871,361 N Amounts reported for governmental activities in the statement of net o assets are different because: v Capital assets'used.in governmental activities are not financial resources and therefore are not reported in the funds. 1 11,486,796 d Some liabilities are not due and payable in the current period and therefore } are not reported in funds. Those liabilities consist of: it 0 a Capital leases — $ (27,807) � Other payable (114,215) .Q Long-term compensated absences payable (242,280) Ca,. Op'p obligation (604;724.) (989,026) .LL . „ . , Revenues that-are rnot•available;in,the current period are deferred` in the governm'entai funds, but not'in the statement of net assets. 138,724 - .v Net assets of governmental activities $ 1.5,507855 , 'o, ea c LL C C • QI Q � ;W w ' _ C ice+ , •Q The accompanying notes are an integral part of these financial statemelts. 19 I � =PacketPg` �50�, City of Grand Terrace Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds For the`yea'r ended June 30, 20. 2 04 Special Revenue Funds Redevelopment o Street Agency General Improvement Housing Authority Low-Mod ,a REVENUES d Taxes $ 2,379.612 $ - $ $ - C Licenses and permits 638,036 Intergovernmental 96,494 - - i- Charges for services 1,103,323 - - Fines and forfeitures 20,355 - - Use of money and property 40,941 2,928 - 1,077 Developer fees - 12,448 - p Other 307,847 - - - Q d w Total revenues 4,586,608 15,376 1,077 ;_ 2 EXPENDITURES Current: s= General government 1,126,4.40 - - ,LL Public safety 1,770,8,17 - - - Public Works 666,454 - - - Economic development - - 386;280 Cultural and recreation 1,117;024 - - Q Debt service: Principal 26,567 Interest.and other charges 2,312 Capital outlay: M Project improvement costs - Total expenditures 4,649,554 - 386,280 O CL .d Excess(deficiency)of revenues over expenditures (62,946) 15,376 - (385,203) OTHER FINANCING,SOURCES(USES) r Proceeds from sale of assets 358,374 - - - Transfers in 363;587 - - 91,228 C Transfers out (74,084) (17,012) (6,026) M Total other financing sources(uses) 647,877 '(17,012) - 85,202 C EXTRAORDINARY AND SPECIAL ITEMS QI Gainfloss on dissolution of redevelopment agency - - 1,926,007 (2,154,479) Q w Net change in fund balances 584,931 (1,636) 1,926,007 (2,454,480) Z- - •x Fund balances-beginning 202,029 1,294,151 - 2;454,480 W Fund balances-ending $ 766,960 $ :1,292;515 $ 1,926,007 $ - :d .'E r w 'a The accompanying notes are an integral part of these financial statements. 20 �!Padket.F,,g 51' i N Debt Service Fund Capital Project Funds Total Redevelopment Redevelopment Redevelopment Non-Major Total �- Agency Agency Agency Governmental Governmental Debt Service Capital Project Project Trust Funds Funds d $ 2,460,763 $ - $ - $ - $ 4,840,375 C - - - 638",036 LV 1,429,620 1,526,114 1,103,323 54,553 74,908 26,590 - 1,995 73;531 - 9,069 21,517 Q. - 3 - 188,554 496,404 2,460,763 26,593 - 1,683,791 8,774,208 C.1 C 22,015- - - 1,148,455 IJi - - - 138,240 1,906,657 To - - 1,283,493 1,889,947 193,763 - - 580,043 - - 1,117',024 a 1,801,501 - - - 1,828,008 388,909 - - 391,221 r� - 198,183 - 188,504 381,687 cal 2,212,425 386,946 - .1,610,237 9,245,442 .0 Q 248,338 (360,353) - 73,554 (471,234) ,v 358,374 1,071,000 288,368 1,814;173 C (1,276,404) (30,284) (278,923) (1,682,733) U. (1,276,404) 1,040,716 - 9,435 489,814 C C a (9,540,123) (21,982,088) (1,207,500) - (32,958,1.83) QI (10,568,189) (21,301,725) (1,207,500) 82,989 (32,939,603) B x 10,568,189 21,301,725 1,207,500 782;890 37,810,964 LV $ - $ - $ - $ 865;879 $ 4,871,361 ,41 cc ' I V ' a The accompanying notes are an integral part of these financial statements. 21 Packet+Fg:,52,. City-of Grand Terrace Reconciliatioh'of the statement of Revenues, Expenditures, and Changes in,Fund"Balances of Governmental Funds :i to the' taternent,of Activities For the-year ended June 30, 20'12 Net change in fund balances-total governmental funds $ (32,939,603) N Amounts reported for governmental activities in the statement of activities are M different because: W d Governmental funds report capital outlays as expenditures. However,in the = statement of activities,the cost of those assets is allocated over their w estimated useful lives and reported as depreciation expense or are allocated R to the appropriate functional expense when the cost is below the capitalization } threshold. ' This activity is reconciled as follows: c ,Q. 0 Cost of assets capitalized,less disposals at net book value $ 1,137,907 � Depreciation expense (617,950) 519,957 2 c The issuance.of long-term debt provides current financial resources to governmental funds,while the,repayment of.the principal of long-term debt consumes the cui-rent ii financialI resources of gdvern'mental funds. Neither transaction,however„has an effect on net assets. _ P.rihcipal.payments on long-term debt 1,828,008 Q N l T M 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 -governmental funds. Q. -,d Change in OPEB obligation $ (160,331) Change in insurance payable (27,115) MO 'Change in cornpensated absences payable 221679 Change in accrued interest payable on long-term debt 253,698 88,931 Revenues that are not available in the current period are deferred '20 in the governmental funds,but not in the statement of activities. 112,141 c al Extraordinary gain in closing of the former redevelopment agency 23,418,715 Q r Change in net assets of governmental activities $ (6,97;1,851) :c x as a) :E ,s w a The accompanying notes are an integral part of these financial statements. 22 P'acket?P;g 53,Y ' I I City of.Grand Terrace Statement of Net Assets Proprietary Fund June 30, 2012 Business-type N Activity o Waste Water Disposal m c ASSETS w L Current assets: Cash and investments $ 2,353,475 } Interest receivable 571 0 Accrued revenue 75;297 Total current assets 2,429,343 Noncurrent assets: Capital assets: LL Sewer system 7,415;106 Less accumulated depreciation (2„175,418) a Total noncurrent assets 5;239';6,88 Total assets 7;669.,031 M co - ,I. LIABILITIES 0, Current liabilities: Accounts payable 18,821 Accrued liabilities 8.183 Due to other governments 491,060 •E i Total liabilities 518,064 = al NET ASSETS a Invested in capital assets 5,239,688 Unrestricted 1,911,279 x w Total net assets $ 7,150,967 E M w a The accompanying notes are an integral part of these financial statements. 23 Packef'rPg.,`54. ' City of Grand Terrace Statement of Revenues,'Expenses, and Changes in Fund Net Assets Proprietary Fund For the year ended June 30, 2012 Business-type N Activity r Waste Water Disposal V OPERATING REVENUES Charges for services $ 1,600,628 w i Connection fees 3,960 } Total operating revenues 1,604,588 3 OPERATING EXPENSES Personnel services 52,363 ._ Employee benefits 26,108 c Depreciation 88-,570 Contract-services 1,211;153 Repairs and maintenance 15,;775 a Other expenses 43,376 N Total operating expenses 1,437,945 �? 0 Operating income 166,643 NONOPERATING REVENUES Interestinco hO 6,267, c Income before transfers 171-,910 c Transfers out (131,440) ILI al Change in net assets 40,470 - s, :x Total net assets- beginning 7,110;497 w Total net assets - ending $, 7,150,967 'E " a The accompanying notes are an integral part of these financial statements. 24 .=P:acket;P,g:55 • _ ;3q.a_ City of Grand Terrace Statement of Cash Flows Proprietary Fund For the year ended June.30,.2012' Business-type Activity N Waste Water Disposal Cash Flows FromOperating Activities: Cash received from customers $ 1,752,335 Cash payments to suppliers (1,550,537) w Cash payments to employees for services (78,946) Other operating revenues 3,960 >' Net cash provided by operating activities 126,812 0 0 a Cash'Flows From Noncapital Financing Activities: Transfers to other funds (131,440) Net cash used for noncapital financing activities (131,440) ca c LL Cash F16Ws From Investing Activities: Interest income 6,849. -c Net cash provided by investing activities 6,849 Q Net increase in cash and cash equivalents 2,221 M Cash and cash equivalents- beginning 2,351,254i c. Cash and cash equivalents- ending $ 2,353,475 V Reconciliation,of Operating Income to Net Cash Provided by Operating Activities: U. Operating income $ 166,64-3 Adjustments to reconcile operating income to net c cash provided by operating activities: a Depreciation 88,570 QI (Increase)decrease in assets: Q_ Accrued revenue 151,707 +x • x Increase (decrease) in liabilities: ui Accounts payable (85,833) o Accrued liabilities 125 E Due.:to other governments (194„400) m ' a Net cash provided'by operating activities $ 126,812 The accompanying notes are an integral part of these financial statements. 25 �Packet��Pg;�.56 City of Grand Terrace Statement of Fiduciary.Net Assets ti . June,30, 2012 _ Successor Agency Private Purpose Trust Fund Agency Fund ASSETS M Cash and investments $ 24,428,247 $ 344,205 to Cash and investments with fiscal agents 3,058,099 - M m Receivable: M Interest - 5,895 - uU Due from other governments 3,219,880 - Amoffizable deferred charge asset 384,075 - Capital assets,net 438,682 - Land held for resale 4,842,472, - 0 CL Total assets $ 36,37.7,359 $ 344,205 LIABILITIES -Accounts payable $ 368,541 $ 1,717 Ac—d6ei'lial7ilitieS 479,451 Iriter:governmental,payable-City 488,111 Due'to.other government's 2,208,923 - Deferred revenue 97 Noncurrent liabilities: Due Within'one year '2,582,887 - �"_ Due irf rriore'-than one year 21,772,324 - c Refundal le.deposits -- 342,486 Total liabilities 27,900,334• $ 344,205 .on NET ASSETS Held in trust for the Successor Agency $ 8,477,025. Ta LLi C C a� a w M ,M x C d JE ;s c0 a The accompanying notes are an integral part of these financial statements. 26 - `Packet1Pg�t57� -3:D., City of Grand Terrace Statement of Changes'in Fiduciary-Net Assets Private.;Rurpose Trust Fund=Successor Agency For the Per!od'frorb'Inception (February 1, 2012) to`=June 30, 2012 Successor Agency N Private Purpose Q Trust Fund ADDITIONS RPTTF distribution $ 2,679,560 Investment earnings 87,674 w Other receipts 56,300 Total additions 2,823,534 0 DEDUCTIONS C General 424,738 Debt Service payments-interests 2,182,674 Depreciation 31,334 c=a Other payments 1,247,231 _ ii Total deductions 3',885'977 _ EXTRAORDINARY ITEM Q Gain in redevelopment agency dissolution 9;539,468 'ch Change in net assets 8,477,025 0 Net assets-beginning (at inception) _ Net assets-end of the year $ 8,477;025 49 c < co ,c ii c c a� a iZ x w r rE 0 a The accompanying notes are an integral part of these financial statements. 27 ;Packet!Pg.ry,58 < 7' N� M - C1 fO CD �D rr O 3 CD 7 rt O 7 D1 - �G 'rk_ °�< -Attachmerit. Exhibit A_Arinuaf Financiai`Report=6=30=12,'(Arinual;Finaricial Report-Year-Ended 6/30/12), c Z O CD N rt O -n 7 n w Cl) rt O CD a (D 7 N `1 '�1N A4'tachment: Exhibit'A_Annual.Financial Report_6=3' !;.(A"nnual`Financial Report-Year Ender A112) 4 Li _ ( City of Grand Terrace' Notes to Financial Statements Ju 1.ne 30, 2U12 I. SIGNIFICANT ACCOUNTING POLICIES Note 1: Organization and'Summary of Significant Accounting Policies N a. Description of the reporting entity M The City of Grand Terrace (the "City") was incorporated November 1978 under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides = the following services: public safety (law enforcement), highways and streets, cultural and w recreational activities, public improvements, planning and zoning, building and safety, low and moderate income housing programs, and general administrative services. } As required by generally accepted accounting principles, these financial statements present the City of Grand Terrace,(the primary government) and its component units. The component units discussed below are included in the City's reporting entity because of the "significance of their operational or f4 financial relationship with.the City. These entities are legally separate from each other. However, the City of Grarid Terrace's elected officials have a continuing full or partial accountability :for fiscal S matters of tle'pfheryentities. The financial reporting;entify consists of: 1)the City,2) organzations:for, which"the`City is Tin ancially.accountable,,and,3) organizations;for which:tlie nature and significance of 'their relationship with"the City are'such-}that exclusions would'cause- the`City's financial statements to a be misleading or,incomplete. ' N L - - An organization is fiscal ly'dependent on-the.primary government if it is unable to adopt its budget, levy M taxes or'set rates or charges, or issue bonded debt without approval by th,e-primary government. Ina to blended presentation, component unit balances and transactions are reported in a-manner similar to c th'e balances aril transactions of the City. Component units are presented on a blended basis when the component unit's governing body is substantially the same as the City's'or the component unit provides services,almost entirely to athe City: The following component.units of the City have been, included in,the financial reporting entity as"blended component units. A description of-these component units and the method of incorporating their financial information in the accompanying general purpose financial statements are summarized as follows: The Community Redevelopment Agency of the City of Grand Terrace a� The Community Redevelopment Agency of the City.of Grand Terrace (the "Agency") was formed, ie pursuant to the State of California Health and Safety Code, Section 33000 entitled "Community w Redevelopment Law." Its purpose is to carry out plans for improvement, rehabilitation and redevelopment of blighted areas within the territorial limits of the City of Grand Terrace. The City Council also acts as the governing body of 'the Agency. On 'Decbmb`er,29, 2011; a California s Supreme'.Gourt ruling directed that�all redevelopment'agencies.6b'diss6'1wed_on February 1,2012; a therefore, the redevelopment agency funds account for activities of the Agency only'through a January .31, 2012. See note 14 for additional information on the redevelopment .agency dissolution. 28 - - U _ Packet Pg�:61 D. .- Cit of Grand Terrace Notes to Fnan°c'ial Statements June 30, 20'12 Note 1: Organization and Summary of Signifcant,Accounting Policies (continued) The City of Grand Terrace Public Financing Authority The Grand Terrace Public Financing Authority was established on July 16, 1991, pursuant to a Joint a Powers Agreement:between the City'of Grand Terrace and the Community Redevelopment Agency of the City of Grand Terrace. The Authority was created to facilitate financing for public capital improvements benefitin94he;City. and Agency. The City`Council:also acts as the'governing body of a the Authority. The Authority's activities are blended with those of the City in these financial w statements and are reported as-a debt service"fund. L_ I There are several other governmental agencies, including the County of San Bernardino, school districts, and others, 'providing services within the City of Grand Terrace. f Those agencies have a independently elected governing boards other than the City.Council of the City of Grand Terrace and no,financial'accountability to the City of Grand Terrace. Consequently, financial information for these agencies is not-incl'uded,within this financial report. c. b. Government-wide;and fund,financial statements The government-wide 'f n'ancial statements. include :a st61'" '"fi.:of net assets',an_d a statement of activities. These statements present'sumrriaries'of governmental and business=type activities for the a City •accompanied .by 6- total column. Fiduciary`•activities of the City-, are, not included in these =�+. state;`ments. Certain eliminations have been made as prescribed by GASB Statement No. .34 in regard to interfund .activities, payables;'and receivables. All internal:balance`s in.the statement of net assets;have`6een eiiminated•except`-those;representing bolances�between,the,governmental activities and the business-type activities, which are presented as internal balances and eliminated-in the',total 0 primary government column. Governmental activities, which normally.are supported `by taxes .and intergovernmental revenue's, are,reported separately from bu_siness-type activities; which rely to, a significantextent,on.feesand-chargesfor•-s upport. tr- , The sfatement of activities demonstrates,the degree to which the direct'and indirect{expenses-of a LL given function or segment are offset by program revenues. Direct expenses are.those that are clearly iden'tifable with a specifofunction 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 Qi given function or segment aria 2) grants :and contributions; including speciall'assessments, that are restricted to meeting the operational or capital requirements of a particular function' or segment. c' Taxes and other items not.properly included among program revenue are, reported 'instead as.general revenues., .Separate financial-statements are provided for governmental 'funds, proprietary, and fiduciary funds, E even though the latter-ae,.excluded:from the government-wide financial state f ents Major individual governmental funds and major individual enterprise 'funds are reported as separate•columns in the a fund financial statements. I i 29 _i ;,,may-.Ty..f Pg,-. Packet. .;62, ;.rDa; : City of Grand Terrace Notes to Financial Statements June 30,2012 Note 1: 'Organization and Summary, of:Sighlficant'Accounting P,olic ies,(contliiued) C. Measurement focus,basis.of accounfing,,and financial'statement presentation The government-wide-.statements are reported,usirig the e'conotV-resources measurement focus and c the accrual basis of accounting, as.are the proprietary fiund and.fiduciary,fund financial stateAP ments. Revenues are recorded when earned and expenses are recorded "when a liability is, incurred, M regardless of the timing of the cashi#lows. 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 w accompanying •statement of net assets. The statement of activities presents changes in net assets. 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 0 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`tke'modified-accrual basis of accounting. Under,the modified-accrual`basis , of accounting, ;revenues areecognzed;in these fiunds when'susceptble fo,accrual.. ie.; when they (F. a are`both measurable and".available); `"Measurable=' rheahs,1he amount aof. ,the transaction cane-be' determined and "available".means collectible'witfiin.'the cu�ren`t`per%d or`'0o`h e'nough,,thereafterto;t e used to pay'Ilabilities of'tte`current 'period._ For""`this;'pu�pgse,ahe"',City.corsders =property taxes Q_ « . collected"after year=end as available, if;�they,are collected within' '' -d'ays`of'�.tHe-.end 'of the c`ureent s� fis-cal period Other.:revenue susceptible to accrual includestsales tax, state gasoline taxes;:investment o income,and certain;:other'intergoyernmental revenues.- Expenditures in the governmental funds.are generally recognized -in, the accounting' period in which -the 'related fund liability is;incurred, 'if ' ! -measurable;' ezeept for ,unmatured a principal 'and_ :iriterest on general ;long=;term debt, as well as. - compensated absences:and claims and iutlgments; which are r.'ecognized•when due. The City"reports the following'mplor governmental funtls:- ,_' The General Fund is'the government's primary operating fund. It accounts for•all financial resources i%- of the general government, except those required to be accounted 1or in another fund. , The Street :Irnprovement Fund accounts for the fees used for street -maintenance, right-of-way ai acquisition and street construction. Sources of revenue are traffic'fines and forfeitures collected. a The Housing •Authority` Fwnd accounts for the _housing - ,assets transferred from the former W. redevelopment agency Low and Uoderate ;housing activities of the City. The,fund activities are uj ,restricted to,'the'same requirements.as-the,former,Low and"Moderate Income Housing Fund of_the 5, Agency. 8 The Community-Redevelopment Low'Income Fund•-is used-to.account for.the financial•resources •in a used `su?pplying;the low,and moderate;incomehousing throughout the City.`The fund was.closed on ` January 31;2012 as Part of the dissolution of th'e Agency (see Note 14). The Community Redevelopment Debt Service Fund.is used,for the accumulation•of resources to,be used for the r'epayrnenf of-Agency'dept. The fund was closed -on'January 31, 2drt,2 as part of the dissolution of the Agency(see Note'14). 30 • -^Packet P£g�63�;-� City.of.Gralld Terrace, Notes to`Financiai Statements June 30, 2012 Note 1: Organiiation and Summary of Significant:Accounting Policies (continued) The Community Redevelopment Capital Projects Fund is used,to account`for the,financial resources used in developing the.;;project area as well as administrative expenditures incurred in .sustaining N Agency activities. The fund was closed on January 31, 2012 as part of the dissolution of the Agency c" (see Note 14). I The Community Redevelopment Capital Projects Trust Fund is used to account for the financial resources used in developing the sustainable economic growth, and the implementation of economic ILI development in the City. The fund was closed on January 31, 2012 as part of the dissolution of the Agency (see Note 14). ` The City reports the following major proprietary fund: Q. The Waste Water Disposal.Fund is used to account for the provision of waste ater disposal services to the residences and businesses of the City. Additioriaily,'the City`reports the:following-fund;type: LL. The Private:Purpose Trust.Fund is used to'account"for the:resources;.obligations;and-activities of 0'. Successor Agency of,t6 Redeveloprneht,Ag&hby`of 'the City of Grand`Terrace as directed by ',the a,' Oversight`B'oard'to settle the,affairs of the dissolved,:agency (-ee.:Note 14). The Agency Funds are used to account for the resources,held by the City in a fiduciary capacity. Private-sector,standards-'of accountin c; g ,a_nd,financial :reporting: issued prior, to, Decemkiec 1, 1989., a generally are followed in both"the government wide aiid proprietary fund-,financial statements to the extent' that, ,those .standards -do not �confli'ct with .ot contradict :guitlance of .:the Governmental Accounting`StaridardsB`oard. Governments:also; haveithe option,':of`following ,subsequent ,private- sector guidance forthe'ir business=type activities and enterprise funds, subject to this sa"me limitation.` The Ctty has elected no. 61f6116w subsequent.private-sectorgnidance. As a general rule the effect of interfund activity' has been ,eliminated from the government-wide financial "statements. Exceptions to this`general. rule are payments-in-lieu of taxes and other charges ai between the goyemment's waste water disposai function .and various other functions of the Q government. Elimination of these charges would distort 'the direct- costs ''nd program revenues Sl reported for the various functions concerned. x w Amounts reported as program revenues .include 1) charges to customers o applicants for-goods, services or pgnvileges provided, 2) operating grants and contributions, an 3) capital ,grants and .contnbutions,.including`special assessments. Internally-dedicatedresources are -reported as general ` cc revenues rath"er than`as program_revenues. Likewise, general`revvenues include-all taxes. a i 31 ii � I :C"ity.=of:Grand Terrace Notes to Financial Statements June 30, 201 2 Note 1: Organization and Summary of Significant Accounting Policies (continued) Proprietary funds distinguish operating revenues;and expenses from nonoperating items. Operating revenues and expenses,-'generally'result from providing services and producing and delivering goods . N in connection with a proprietary fund's principal ongoing operations. The principal operating revenues c for the Waste Water Disposal Fund are charges to customers' for sales and services. Operating .� expenses for the same Enterprise Fund include the cost of sales and services, ,administration expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition a are reported as norioperating revenues and expenses. w L Other Accounting Policies Receivables and payables a d Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as :either "due to%from other funds" (Le., the current portion of .0 intertund loans)or"advances to/from other funds" (i.e.,-the non=current-portion:of-intbrfund loans). -All other outstanding balances :between„�fun-ds are reported_as°"due to%from other fun`ds.'' Any_residual =u. ;. .tl -. is balances-outstanding between the;governmental zactivities and business-ty0b bctivities'are reported in the government-wide`financial statements as"irite'rnal balances." ' `; ;a - Advances between funds, as reported in the fund financial statement$, are offset by a fund balance reserve- account in applicable governmental funds to :indicate that they are not available for ap'propriati6h and:are not expendable available financial resources. ' V The County tof San Bernardino coil„ects property takes for the City. Tax aiens attach,annually as of `; --Q 12:01 A.M. on the first-day in March preceding the fiscal year forkWhich.the taxes'-.are levied.' The-tax levy covers.the fiscal period July 1 to.June.30. ,All'secured personal property taxes-and;onl- half. of 5; the taxes on real_phroperty are due November 1, the second installment is due February 1. AII taxes " _:. are delinquent, 'if unpaid,.on December 10 and April 10,:respectively. lJnsecu_red personal propertyca taxes become:,due.on�"the.first of M:ardh each.yearrand are delinquent, if unpaid, on August 31. 6 Cash and cash equivalents ai For 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 :a, their maturity that they present insignificant risk of.-changes in value because of,changes-in interest :X rates. The'City follows the practice of:pooling cash and investments of all funds. `Sin'ce cash and 'W investments :are :pooled; the City -utilizes .the assumption that the cash and investments in the Enter.'prise Fund are cash-:and cash equivalents. Investments a The City reports•its-investments at fair-value in the balance sheet. All'i.nvestment income- including changes in the fair value of investments, is recognized as revenue in the operating statement. 32 ;.,.. _ City-;of Grand-Terrace Notes t6_-Finarici6i,Statem'ents June 3.0,2012 Note 1: Organization and Summary of Significant Accounting Policies,(continued) Property held for resale Property held for,resale'is recorded at the lower of-cost or net realizable value. Fund balances are CMreserved.in amounts equal tolhe carrying value of the land held for resale because such assets are not available to'financeAtfb City's current operations. a. Compensated absences w L The short-term portion is determined to be the amount due to employees for future absences which is attributable to services already rendered and Which Is expected to be paid dur'ng the next fiscal year. The total-amount of liability for compensated absences is segregated between short-term and long- c. term as indicated above and both portions are reflected in the government-wide statements. Vacation pay is payable to employees at the time a vacation is taken or upon termination of employment. Normally, an employee cannot accrue more than two tim{es• his regular annual entitlement. Sick.leovq,is.:payable';when an employee is, unable to work,because of illness: Upon termination, regular dmoloyees with`5years continuous service'will`be paid 40%for.any'unusod sick leave. a Capital'assets ' _. Capital assets, which include property, plant and;equipment,. and in. assets. (e..g., roads, bridges; sid,"ewalks, and similar items) are reported in_the applicable governmental-or'business-type 0 activities columns m the government=wide"financial statements. Capital assets are defined by.the :2 government,•as assets with an initial,,individual cost of mqr"e 4han' or equal fto $5,000 (amounf .not rounded) and an-`estimated.useful aife*of at least'two years. Such assets' are recorded at.historical cost, or.estimated,historical cost•.if;purchased o`r constructed. Donated capital assets;are recorded at estimated fairmarket value at the date of donation. LL r� The cost of,normal maintenance and `repairs that do not add to-the value of the asset or materially c extend assets'lives are not capitalized. ai Property, plant and equipment of the primary government, as well as the component units, are 3 depreciated using the straight-line method over the following estimated useful Ives. x :w Assets' ._ - Years- E Buildings • = 50 Machinery &,equipment 5 - 15 w Vehicles 6 - 15 a Improvements other than buildings 15j-'20 Infrastructure 20 -30 Sewer lines 90 I . 33 City of Grand Terrace Notes to Financial Statements June 30, 2012 Note 1: Organization and Summary of Significant Accounting Policies (continued) Use of estimates N The financial statements have been prepared in accordance with generally accepted accounting c principles accepted in the United States of America and necessarily include amounts based on _.. estimates and assumptions by management. Actual results could differ from those amounts. V Long=term obligations w L In the government-wide financial statements, and proprietary fund types in the fund financial r statements, long-term debt and other'long=term obligations are reported as liabilities in the applicable V governmental activities, business-type activities, or proprietary fund type statement of net assets. °a Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. _ LL In the fund financial statements,-governmental fund types recognize bond premiums and•discouhts, as well as bond issuance-costs, during the current period. Thelke' amount of debt issued is.repoited as 'other financing sources. Premiums received on debt issuances_ are ire-porfed as other financing a sources while discounts on debt issuances are reported.a's other financing uses. Issuance costs, whether-or not witlheld from the actual debt proceeds received, are reported as expenditures: c Fund equity 0 a The City implemented GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions,during the year.ended-June 30, 2012. This statement provides`more clearly .defined , ,0 fund balance':categories'to make the.nature and extent:of the,constraints placed on a,goyprnment's fund balance more .transparent. The -following classifications' describe the relative strength-of the C spending constraints placed on the purposes for which resources can be used: • Nonspendable — amounts that are not in a spendable form (such as inventory) or are required to be maintained intact.. a, • Restricted — amounts constrained to specific purposes by their providers (such as a grantors' , bondholders and higher levels of government), through constitutional M provisions or by enabling legislation. w • Committed — amounts constrained .to specific purposes by a government itself, 41 using',the. highest level of decision-making authority; to'be reported as committed, C )amounts cannot be used for any other purpose unless the government takes the 'E same highest level action to remove or change the constraint. • Assigned .amounts a government intends to use fora specific purpose; intent can Q be expressed by 'the governing body or by an official or body to which the governing-'bodyrdelegates the authority. • Unassigned — amounts that are for any purpose; positive amounts are reported only in a general fund. 34 _' City;of Grated Terrace Notes_to"firiancial'Statements June30, 2012 Note 1: Organization and Summary of Significant Accod iting,Policies (continued) The City Council establishes (and modifies or rescinds).fund balance commitments by passage of-an ordinance or resolution. The City has notdesignated any level`of authority'forassigning fund balance; -= ther'efore;`.the City Council can assign fund balance. .o When both restricted and unrestricted resources are available for use when expenditures are incurred, it is the City's policy to use restricted resources first,•then unrestricted resources as they are a needed. It is the City's policy to consider committed amounts as being restricted first, followed by w assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used. >- 0 - -c II. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY a. Budgetary data �a- The.annual budget is adopted b the City Council after the holdin ='"g p , y y _ g of�a hearing and provides for :.th,e$general operatign'of1h'e City. The oPeratirig'bud"get includes proposed:expenditures-and'the-' means of financing them.' The City Council approv,,es totoi,bi dgeted appropriations and any amendments to appropriations throughout tfie,year This "app,roRpriated`budget"•(as,definedby GASB Code:Section 24.0.0.'109) covers City expenditures in all �gove'rnmental funds; except'for.the Public financing'-Authority co Debt`Service Fund. This entity,.does not adopt.an annual bu-dget.as effctive budgetary control ;o x.. is achieved through bond indenture and other instrument provisions. Actual:expenditures.may - not'excebd budgeted appropriations at the fund level. Formal.<Ndgetary 'integration is,:employed_,as ,a,--mariag"ement control device during the Commitmenfs,f-or materials and services; such as purcha'se..orders and:contracts;<ar`e recofded _ as encumbrances to.assist in controlling expenditures. -Encurnbrand fat year.-end lapse, and then are added to the following year's budgeted appropriations. Also, u.nencurribered appeop f cations lapse at year-end. C , Annual -budgets,for the General, Special Revenue, and Community Redevelopment Agency a Debt Service funds 'are adopted on.a :basis -consistent -with accounting principles generally _s accepted 'in the United States of.America. Accordingly, actual revenues and. expenditures can j W be compared with related budgeted.amounts without any significant`reconciling'items. , Capital, :projects,arebudgeted through the' Capital Project_,Fund -Appropriations for capital protects authorized, but :not constructed or completed dui mg theyear, 'apse at year-end; -and o' are=then included as a part of appropriations in tfie•following-year's annu I budget. 35 City.of Grand Terrace Notes WFinaridial=.Statements June 30, 2012 Note 1: Organization and Summary of-Significant Accounting,Policies (continued) b. Deficit funal balances '-N As of June 30, 2012 the following funds have deficit fund balances: c co fa _Y Amount M Special Revenue Funds: AB 3229 COPS $ (433) w Traffic Safety (13,221) CDBG (42,166) Capital Projects Fund: ,Barton/Colton Bridge (31,263.) , Capital Projects (36,821) These deficits will be funded by future revenues or transfers from.other funds. C. fxcess of.ezpendifures over_appropriations i+= , Excess of expendituiresoVer.appropriations in individual funds are as follows: _ Fund Experiditures Appropriations Excess r ( _7 Ge,riera l,'Furi d `Cuiturala nd Recreation $ 1,117,024` $ 1,112,083 $ (4,941) SpecialRevenue°Fund: i Q Air Ouaiity Public`works 5,775 (1,600) (7,375) -2a.. Landscape&LGTG,Assessment Public:works` 12,528 7,.122 (5,406) Capital Project Fund: Capital Project Bond Proceed >> Capital Outlay 188,504 - (188,504) c 4i Former Redevelopment Q Debt Service Furid 22,015 15,500 (6,515) Z __ x :w . .c ,B " ,a '36 City of Grand Terrace Notes to financial Statei Tents June 30; 2012 III. DETAIL NOTES,ON ALL FUNDS Note 2: Cash-and Investments Cash and investments as of June 30, 2012 are classified in the accompanying financial statements as o, follows: Statement of Net Assets: -tea Cash and investments $ 8,598,664 w L Statement of Fiduciary Assets and Liabilities: ?' Cash and investments 24,772,452 Cash and investments with fiscal agents 3;058,099 d Total cash and investments $ 36,429,21.5 c Cash and investments as of June 30,-2012 consist of the following: Cash on`hand $' ;(459) _ Deposits with-financial institutions 5,942;700 -- Investments 30,486,974 ~i Total cash and investments $ 86,4291215 'COi 0- Authorized investments The -fable' below identifies the investment types that are authorized for the City by the .California =:c Government"Code (orthe Citys investment policy, where more restrictive). The table also dentifes _ certain provisions of the. California Government .Code (or the City's investment .p.'olicy, where more restrictive) that address-•interest11 rate risk, credit risk, and concentration of credit risk. This table-does not address investments of debt proceeds held by bond trustee that are goyer�ied`by the provisions of c debt agreements of the City, rather than the general provisions of the California Government Code or ai the City's investment policy. ,Q Maximum Maximum w Maximum Percentage Investment in Authorized_;Inve'stment Type m6tu'rity of Portfolio. one;lssuer U. 8jreasu-`ry-Qbligations 5°•years -,None`- None :z `Repurchase Agreements 1 year None .None o Certifcates of:Deposit 5 years None Norte a Negotiable,Certificates of Deposit 5 years -30% None Pas"i book,Savings Accounts N/A None None Sa , Securities Issued by Federal Agencies 5 years-' None None Local=Agericy,lnvestment Fund (LAIF) N/A None -None Mutual Funds N/A ,20% -10% Pools and other�investment structures N/A None None 37 _ 9 'City of,.Grand Terrace Notes to Fina'ncial•Statements June'30, 20.'.2 Note 2: Cash and Investments (continued) Investments authorikdd-by'debt agre,'ements Investments of debt proceeds held by bond trustees are governed by provisions .of :the debt r —� agreements, rather than the general provisions of 'the California Government Code-or the City'§ M investment policy. The table below identifies the investment types that are authorized,for investments held by bond .trustees. The table identifies certain provisions of these debt agreements that address interest rate risk; credit risk and concentration of credit risk. w Maximum Maximum Maximum Percentage Investment in Authorized,Investment Type Maturity Allowed One`Issuer c Government Obligations None None None c. FHLB's None None one FHLMC's None None None Farm Credit Banks None None None _ FNMA's None None None Financing CorpMObt Obligations ,None None. None LL Resolution,Funding'.Cofp'Debt.Obl'igations None None. None >>. CeFtifca es of;D'epb§it 360•days None None ' Deposits fully insured-by FDIC None None None a" USAID•Guaranteed Notes None None None' -. Investment Agreements None None - None c` —' ;Bankers Acceptances 360 days None None 'Municipal .Obligations rated Aaa None None 'None . Commercial-Paper rated P-1 270 days :None 'None -0 Repurchase Agreements None None None _ Moneji Market Mutual_Funds rated AAAm N/A None None R Disclosures relating,to, nteresUrate risk Interest rate risk is the risk that changes Lin market interest rates will adversely affect the fair value of an investment. Generally,-the longer the maturity of an investment, the•g'6eater the sensitivity of its fair 0: value to changes in market.interest rates.: •One'of the ways that the City :manages its exposure to °c interest rate risk is by purchasing a combination of shorter,and longer term investments and by timing Qi 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. P_ Information about,the sensitivity of the fair values:of the City's investments to market interest rate w ,fluctuations'are presented,below. ` 12 Months d ;__ Jlnvestment Type Amountess.- Money,Maeket;Mutiaal Fund $ A,081,009 ;$ '1108'1-;009 �, Passbook:Savings°Accoiint 250;020 250,020 Q Certifcafes-of Deposit 13,1,09'572 13,109;572 Local Agency 'Investment Fund(LAIF) 9,11'1;826 9,11`1,826 Local-Gov. Invest.Pool (CAMP) 3,876,447 3,876,447 Held-by Trustee: Money Market Funds 3,058,100 3,058,100 Total $ .. 30,486 9,7.4 $ 36,,486,974 38 City of Grand Terrace Notesto'Financial-Statements June 30, 2012 f i Note 2: Cash and Investments (continued) Disclosures relating to credit risk 4 N Generally, credit risk is the-risk'that an issuer of an investment will not fulfill its!obligation to the holder c of the. investment. This is measured by the assignment of a rating -by a -nationally recognized statistical rating organization. Information about the minimum rating required by the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of year- end for each type of investment held by the City can be found`below. � L Minimum Legal i Investment Type, Amount Rating .Actual Rating C Money Market Mutual Fund $ 1,081,009 N/A "N/A a Passbook Savings Account 250,020 N/A ; N/A a) Certificates of Deposit 13,109,572 WA N/A �. Local Agency Investment Fund(LAIF) 9,111,826 N/A N/A Loce West .est. Pool (CAMP) 3,8176,447 N/A N/A _ Held by Trustee: ILL Money Market-Funds .3,058;100 AAAm AAAm/A+ �a Total $ `36,486.,974 = Conceiitrafion..of,credii•risk - co The investment policy of-the-City contains no ,limitations on the amount that can be invested in any one issued beyond that stipulated by'the- California Govemment.Code'. buying.the:fiscal year ended '°n. June-30, •2012, the City did not'hold any investmerits`in any one issuer(otherithan'Mutual Funds a'nd Ekternal Investment Pools)that represent 5% or'ni"*re,of total City's investments. Custodial credit risk `may Custodial credit-frisk for deposits is the risk that, in the event of the failure of a depository financial M' institution, a government will not be able to recover,,its deposits orwill not'be able to recover collateral Q, securities•that are in the possessionr of an outside party. The custodial credit,risk for investments is am the ,risk that,""in the event of the failure of the counterpa)ty (e g`., 'broker=tlealer)-to .a transaction, a government will,not be able to recover the value of:its investment or-,collateral.securities that are in the possessio.n'of another party. The-Ca-ifornia;Goverr ment Code and ttie,City's investment policy`do not w contain aegal or policy requirements that;would limit the exposure'to custodial credit risk,fof deposits o..'r investments; other than the following_provision -for deposits: The 'Califo• ni'a Government Code d requires :that;a,financial institution.'secure deposits made by state. or localgover..nmental units:by' pledging securities in'an, undivided collateral pool held by a .depository tregiJiated urYder. state,law (unless Aso waived` by the ;governmental •unit). The market.-.value 'of the, pledged securities in .the a collateral: pool .must equal .at least, 110% of the total amount deposited by "the' public agencies. California law also allows fiiancial institutions•to secure deposits by-pledgi g first deed mortgage' notes haVing a-value of 150% of the secured public deposits. As of June 30, 2012, the City had .deposits with financial institutions in"excess of federal depository insurance limits of $13,015,592 and $_821,782 held in collateralized accol nts for -the successor agency and City, respectively. 39 ! Packet PR 772 r City of Grand lertace Notes to'Fit 'a'n`cial Statements June'-30,2012 Note 2:' Cash and Investments.(continued,) Investments in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF)that is regulated by the c California Government Code under the oversight;of the Treasurer of the State 'of'California. The fair CO 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 w based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. AM d LAIF has reported to its participating agencies that, as of June 30, 2012, the carrying amount (at amortized cost) of the-Pool was $6'0;514,457,551 and the estimated fair value of the Pool was a $60,588,263;603. The City's proportionate share of the Pool's market value..(as determined by'LAIF) as of June 30, 2012, was $9;111,826. Included in LAIF's investment portfolio -are collateralized cc mortgage obligations, mortgage-backed securities, other asset-backed securities, loans to certain _ state funds, and floating'rate securities ,Local'Governmentlnvestinent Pool The City is a.voluntary'participant in�the LocaL.GovernmentlnVestment Pool, "CAMP":('Calif&ehia-Asset a, Management Program). -CAMP,':is a California Joint Powers Authority, established to provide .public agencies with,professional_inyestmentservices,�an'd is-directed:by a Board of Trustees, which is made o Lip of'experienced local'government=rfinance directors and treasurers. The CAMP Pool is a.permitted investment fo a' ll local agencies under California Government Code.Section 53601(p). � . a The City reports its share in the irivesthient pool 'at the estimated,fair market-Value. 'As of June-30, 2012, the City share of the'Pool (as determined by CAMP) is $3,876,447. Included.in the#CAMP's iriVestment portfolio -are U.S. treasury notes, bonds, bills,jor certifcates of;in,, or other obligations of the lJnited $tafes;fgderal agency or U.S'.`government-sponsored_entbronse-.obligatio_ns, participations ;or other ;instruments, repurchase agreements, 'bills 'of exchange or time drafts, u: negotiable certificate's of deposits, commercial paper of prime quality of the highest ranking or of the highest letter and number rating. _ Pooled cash a The.City follows the practice of pooling cash and investments of all funds, except for funds required to x be held by outside fisc'al'agents under the provisions of bond indentures. w r Interest income earned on pooled cash and investments is allocated to the various funds based on E the cash.baiances. Interest-income from cash and investments with fscal agents is credited-directly to the related fund. _ w - - a 40 Packef�P wry73`°°.;� City of;Qeand Terrace Notes to Financial Statements June 30,�2012 I Note 3: Interfund Receivable, Payable and Transfers The composition of interfund balances at June 30, 2012 is,as,follows. Due to/from other funds: c Receivable Fund Payable Fund Amount M General Fund Nonmajor Governmental Funds (1) $j 86,305 W Nonmajor Governmental Funds Nonmajor Governmental Funds ! 30,437 cc a� $i 116,742 } (1) The above amounts were loaned to provide short-term loans to.fund,operations of the various 0 funds. Advances from/to other funds; Receivable Fund Payable•fund Amount i Housing`Autho�ity Fund General Fund $ 168;205, _. In April 1980, the CRA entered into a pass-through agreement with the .City,,which was found to tie in noncomplianceVith'State statutes. The mis6l16cated tax increment was being treated as advances i payable to the former Cornmmahity Redevelopment Agency from the;Gerieral Fund. Since the close of .o the Red_evelopment�Agency', the advance re'ceivable'was transferred to the Successor Agency and is shown as a due from other government in,the Private Purpose Trust^ Fund°•in the amount of ; $3;214j888.Ahterest gn;`tfae advance accrues at;an`.intere9t:rate equal-to,the':Local Agency Investment Fund yield. The advance'is to be repaid as funds.a`re,.aVailable. } Rf l 7 _, Q W r` E , r a I f 41 • `=3Da.vim City of Grand Terrace Notes'tb,Financiai,Statements June 30, 2012 Note 3: Interfund Receivable, Payable and Transfers,(continued) Interfund transfers: ' N Fund Receiving Transfers Fund Making Transfers Amount 0 General Fund Nonmajor Governmental Funds $ 64,649 C9 'a Street Improvement Fund 17,012 Waste'Water Disposal Fund 181,440 _ w CRA Low-Mod Fund 6,026 1- CRA Debt Service Fund 114,176 CRA Capital Projects Fund 30,284 (1) 363,587 c a a) CRA Low-Mod Fund CRA Debt Service.Fund 91,228 (2) :91,228 5 _ CRA Capital Projects Fund CRA Debt Service Fund 1,071,000 :r- (3) 1;071.1-000 U. Nonmajor Governmental Funds Nonmajor Governmental Funds '2114,274 Gener_al'Fund 74;084 (4) 2881358 N T- Total Inteffund Transfers $ 1;814,173- ch io (1)These transfers were made for cost allocation. a (2)"These.transfers were.made for tleicost of goods and services (3)Transfer was for`the funding of Michigan Street Design&ROW Project 4 These transfers were.Franchise Sw6e fees td gas tax and other various project fundin s :as . c Note 4: Loans Receivable U. General Fund a The City offers an employee loan program under which employees may be:loaned, interest free, up to $2,000 towards the purchase of a computer. The loans are repaid over a period not to exceed x twenty-four months through payroll deductions. The balance at June 30, 2012, is_$364. w d E w w ' a 42 Packet<Pg r75 City.of Grand Terrace Notes to Financial Statements June 30, 2012 Note 5: Capital Assets �I Capital asset activity for the year ended June 30, 2012 was as follows: Transfers to N r Beginning successor Agency Ending o Balance Additions Transfers at 1/31/2012 Balance Governmental Activities: Capital assets,not being depreciated: Land $ 1,579,379 $ 597,690 $ - $ - $ 2,177,069 = Construction in progress 824,254 490,217 (558,272) (458,367) 297,832 W Total capital assets,not being >T depreciated 2,403,633 1,087,907 558,272) (458,367) 2,474,901 0 Capital assets,being depreciated: 0 Buildings 6,268,981 - - - 6,268,981 W Machinery&equipment 804,972 - - - 804,972 co Vehicles 592,707 - - - 592,707 0 Improvements other than buildings 3,937,195 - - - 3,937,195 ii Infrastructure 3,351;692 50,000 558;272, - 3,959;964 Total capital assets,being c depreciated 14,955,547 50,000 558,272 - 15,563;819 Q Less accumulated depreciation for: r Buildings (2,433,045) (155,602) - (2,588,647) - -,-- Machinery&equipment (594;441) (30,364) - - (624,805) Vehicles (466,277) (25,890) - - (492,167) : Improvements other than o buildings (1,808;586) (197,842) - - (2,006,428) cv Infrastructure (631,625) (208,252) - - (839,877) Total accumulated de reciation - _ .s p (5,933,974) (617;950) (6,551,924) Total capital assets,being p depreciated,net 9,021,573 (567,950) 558,272 - 9,011,895 c Governmental activities capital QI assets,net $ 11,425;206 $ 519,957 $ - $ (458,367) $ 11,486,796 Q j. &! s W d ' 't v _ t0 w+ w Q I i 43 _ City of Grand Terrace Notes to-Financial"Statements June-30, 2012 Note 5: Capital Assets (continued) Beginning Ending" Balance Additions Deletions Balance Business-type Activities: Capital assets,being depreciated: M Sewer mains $ 4,023,129 $ - $ - $ 4,023,129 <o Laterals 1,890,943 - - 1,890,943 'a m Manholes 1,298,760 - - 1,298,160 Improvements 202,274 - - 202,274 w Total capital assets, being depreciated 7,415,106 - - 7,415,1.06 Less accumulated depreciation for: p Sewer mains (1,203,347) (44,701) - (1,248,048) Laterals (478,062) (21,010) - (499,Q72) . Manholes (359,086) (14,431) - (373,517) Improvements (46,353) (8,428) - (54,781) Total accumulated so :depreciation (2,086,848) (88,570) - (2;175,418) Business-type activity.capital • ;0: assets,net $ 5,328;258 $ - ,"(88,570) r$ - $ 5;239,688- - Q Depreciation experise.was charged to functions of the primary government as follows: c Governmental activities: �I General government $ 84;667 Public safety 18,160 a.` Public works 235,392 Economic development 5,426 Mu- Culture and recreation -274,305- Total depreciation expense-governmental activities $617;950 `m QI a w x w r =c E ;m w a 44 _ _-�'Packet�Pg;?77 City of'Grand Terrace, Note_ s to'Financial Statements June 30, 2012 Note.6: Long-Term Liabilities Long-term liability activity for the year ended June 30, 2012 was as follows: Transferred to Beginning Successor Agency Ending Due Within M Balance Additions Deletions 2/1/2012 Balance One Year Governmental Activities: Bonds.payable: 2004 Refunding Tax Allocation Bonds $ 3,650,000 $ - $(1,720,000) $ (1,930,000) $ - $ W 2011 Tax Allocation Bonds,Series 15,175,000 - - (15,175,000) - 2011 Tax Allocation Bonds,Series B 5,650,000 - - (5,650,000) Less:deferred amounts d on refunding (106,397) - - 106,397 Discount on bonds issued (173,484) - - 173,484 - Plus:Premium on issue 23,901 - - (23,901) - 0 Total bonds payable 24,219;020 - (1,720,000) (22,499,020) - Capital leases: io Zions National Bank 1,929,527 - (81,501) (1,848,026) - HVAC Lease 54,314 - (26,507) - 27,807 27,807 a Total capital leases 1,983,841 - (108,008) (1,848,026) 27,807 27,807 E- I,L= OPEBObligation 444,393 161,998 (1,667) 604,724 - C Compensated Absences 2t 44959 98,245 (120,924) - 242,280 60,570 Q" Total long-term liabilities $26,912,213 $ 260,243 $(1,950,599) $ (24,347,046) $, 874,811 $ 88,377 cV ' I Lease Payable HVAC Lease c In 2007, the City entered into a lease to purchase a HVAC system. The, amount financed was $17 .,000 to be repaid over a seven-year period with interesf at 4.84%.. Principal and interest. - payments die made semi-annually-commencing on December 1, 2006. The lease agreement qualifies _. as a capital.lease-for accounting epurposes and, therefore, has been record_ed:at the present value of its future minimum lease payments as of the inception date. c The asset acquired through this capital lease is as follows: a QI ASSET: w HVAC System $ 170,000 � Less:Accumulated depreciation (56,,231) w ? w Total $ 113,769 E m w a 45 �Packet�Pg�-78; City-of Grand Terrace Notes to-Financial Statements June"30, 2012 , Note 6: Long-Term Liabilities (continued) The minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2012, are as fdllows: N T Q - Year Ending CO l June 30, Payments W° 2013 $ 28,820 Total minimum lease payments 28,820 w Less:Amounts representing interest Present value of minimum lease payments $ 27.,807 V o ,a Note 7: City Employees Retirement Plan Pian description c The City contributes to the California Public Em lb ees Retirement S -stem (PERS), a cost sharing =!ty employee"`defined benefit pension .plan`: 'PERS providgs retirement and benefits, a annuall cost-of-living 'adjustment's, and death benefits to plan .members and "Q beneficiaries. .PERS acts as a common :investment and administrative agent for participating public entities within the State of,California. Beriefi#.,provisions and all other requirements are established by State statute and City ordinance. Copies of PERS' annual'.financial report may be obtained from'their M executive office: 400 "P"..Street, Sacramento, California 95814. i Funding policy Participants are required to contribute 8% of their annual covered salary. The.City contributes 5% of the 8% required-''of the employees on.tlieir behalf and -for itlieir,account The';City. is,required "fo contribute at an actuarially. `determined rate; the .current rate_ is �20.4"82°70 of annual covered payroll. _ The contribution requirements of Plan membersIL and the City are established and may be amended by PERS. c Annual pension cost Qi For 2012, the City's annual pension cost of.$316,814 for PERS was equal to the City's required s contribution. The required contribution was determined as part of the June 30, 2009, actuarial w calculation using the entry agWriorr-hal actuarial cost method. THREE YEAR TREND.INFORMATION FOR--PERS -.E Annual pension Percentage of Net-Pension o Fiscal year cost (AP.C) APC contributed obligation a 06/30110 $ 3191879 100% $ - 06/30/1 1 $ 301,174 100% $ - 06/30/12 $ 316,814 100% $ - 46 -PacketPg City,of,Grand Terrace , Notes`t- Oinaricial,'Statements June 30,2012 Note 8: Other Post Employment Benefits Plan description N The City provides a medical plan coverage.for retirees. This coverage.is available f mor ern'Oloyees who satisfy'the requirements for retirement under the California Public`Employees Retireent System M� (PERS), which is age 50 or older with at least five years of State 'or public agency service. The healthcare coverage.provided ,by PERS meets the definition_ of an Other Post Employment Benefit a (OPEB) as described in GASB Statement No. 45. w L Medical.-plan benefits are provided through PERS, as permitted by,the Public Employees' Medical and Hospital and Care. Act (PEMHCA). As a PEMHCA employer, the City has elected the unequal contribution method, where the contribution will be increased annually over twenty years until it c. reaches the same employer contribution as active employee medical plan coverage. Funding policy The contribution.requirements of the City are established and may be amended--by the,City .Council. :LL The're aired contribution,is based;on a`"-as- ou- o financin' 're uirements: For fiscal year 201'1,- �• q l?. ym Y 9 ; ;g q 2012,the City'con trifjufed soi,60-'to the,plah. Annual OPEB,cost and NET•OPEB obligation i The,City's annual'other,0PEB-cost•(expense) is calculated based on.the annual'requir'ed�contribution ; of the employer (ARC), an.,amount actuarially in accordance.with.GASB Statement No. 45. The City has not obtained an_updafed.actuarial,study of the:plan but is in the,process off having,one,performed a' in 2013.The calculation Is solely based on the 2008 actuarial`report. The AIC represents a level"of funding"that, if paid,on an ongoing, basis,••is projected to cover normal cost each yeai and amortize ,@ x . , .ariy.unfund d actuarial :I,iabilities;,(or funding=excess) ;not to ,exceed thirty years. The following-table shows the components of the.City s annual OFEB cost=for the year, the amount actually'contributed to . tfi"e-plan, and changes in,fhe City's net OPEB obligation: :June•3,0,2012 � c <' Annual required contribution $ 158,189 Q Interest on net OPEB obligation 19,998 Adjustment to annual required'contribution 16;189 =x Annual OPEB cost(expense) 161;998 w Co_ntribut_io_ ns made Increase in net OPEB obligation �601331 E Net OPEB obligation-beginning of year 444;393 = c� Net OPEB'obligation—end of.year $ 604;724 47 -Packet?Pg,80- j . City of Grand Terrace. Notes'to,financial'Staten ents aune'30', 2612 Note 8: -Other Post;Employment Benefits (continued)' The City's annual OR.EB. cost,,.the percentage of annual OPEB cost-contributed to the Plan, and the net OPEB obligation for2012.and the two preceding years were as follows: N Percentage of M Fiscal Year Annual OPEB Annual OPEB Cost Net'OPEB Ended Cost Contributed Obligation a June 30, 2010 $ 148,156 0% $ 290, 156 W June 30, 2011 $ 155,057 1% $ 444,393 June 30, 2012 $ 161,998 1% $ 604,724 Funded.status and.progress IL The funded status of the plan as of July 1, 2008 (the most recent valuation)was as follows: -L _- :cc Actuarial UAAL as aAL Actuarial accrued ',Unfunded . percentage � Actuarial, :value of liability :`AAL - Funded Covered of,covered ,~Year valuation assets (AAL) (UAAL) ratio payroll payroll ,.Q. Ending. date (a) (b) (b-a) (a%b). (c). 6/30/2010 7/1/2008 ' $ - $ 1,4A6,000 $ 1;406,606 _o,66% $2;014;286 69.80%0 6/30/2011 7/1/2008 * $ - $ 1,406;OOb $_1,406,000 0:00% $ 1;911,101 73.57% co 6/30/2012 7/1/2008 1,406;000 $ 1,406,000 0.00% $ 1,614,924 8194% -`0 0. -m *The City has not obtained•an updated actuarial study.The calculation is solely based on the consideration reported in 2008 actuarial report, -� . _. .. •yam Actuarial •valuations of an ongoing plan iriVolve estimates of the value of:.;reported amounts and S ;LI. assumptions about ahe,;probabi,lity of occurrence of events ,far into the future. .,Examples include assumptions about futtire'employment, mortality, and the-healthcare cost trend. Amounts,determined regarding the funded status of the Plan and the annual,required contributions of the employer are = subject to continual revision,'as actual results are compared with past expectations and n'ew.estimates aI are made about th'e:fututo. The schedule of funding progress;•presented as required supplementary information following the notes.to-Mb financial statements, presents multi=year trend information about s whether the actuarial value of Plan assets is increasing or decreasing over time relative to the w actuarial accrued liabilities for the benefits. Actuaria!_meth_ ods and.assbmptions ;E Projections'of benefits-44-financial reporting purposes are based.on the`substantive.plan (the Plan as Q understood`by the employer and the Plan members) and include the types'of benefits provided at the time of each valuation and the'historical_pattern;ofsharing°of,benefit,costssto that;point. The°actuari'd methods and.assumptions used:include lech.niques` 6i1are'designed'to reduce the effects of-short- term'volatility in actuarial' accrued 'liabilities and the actuarial assets, consistent with:,the'long-term perspective of the caiculatidns. 48 City of Grand,Terrace I , Notes to Financial Statements June 30,2012 i Note 8: Other Post Employment Benefits{continued) f The actuarial cost,method used for .determining the ,benefit obligations is:•the Projected--Unit Credit Method'. The actuarial assumptions included,A 4.5%° investment rate of return, which,.is the assumed, rate of-the expected long,,term lnvestr69nt•re`turns on plan assets.:calculated.ba}sed on the`funded level CDof the 'plan"at the valuation .date, and an annual healthcare cost trend .rate of 10 percent initially, � reduced by increments of 1.06/6 per year to an ultimate rate of`5.06/o after the sixth year. 'a iu Note 9: Residential Mortgage Revenue Bonds I- In 1984, the La Verne-Grand Terrace Housing Finance Agency, a joint powers authority duly established,by appropriate resolutions of the Redevelopment Agency of the C�ity"of La Verne an'd the c. Community Redevelopment Agency of the City of Grand Terrace pursuant to Government =Code Section6500, et.`seq., issued Residential 'Mo%6ge'Revenue Bonds totaling $38,625,`000 pursuant to Chapters,'1-5 of part 5 of.Division 31 of:the Health and Safety Code of the State of California. The Z,. bonds provide for long-term low- interest mortgage`loans to qualified home, buyers of si igle-,family homes in certain residential developments' as specified by .the•:in'dentiare: the,bond's are payable iE solely from_payments'made.on and secured,by,,a,pledgO of the home'.mortgages.and"the funds_and' accounts, held 'for therberiefit oftfe bondholders pusuant`'to the,,.indenture `The,b'onds do'n`ot_ :represent a.lien or charge upon'the funds-or property-of the A"�enc `N,eith`ersthe`full faith and.cre`df „9 :,. y ,' nor tfie taxing power, of4 a Agency`is pledged to the payment,of the'bonds �Fof these reasons, the N bonds are not shown as>liatiilities in th'e accompanying financial statements. ; The -mortgage,.bond program is administered by a separate administrator.apart from the Agency as specified by the indenture„The".fiscal agent :anc1 frustee duties are also performed by a separate °�• �. .<r h.: trustee bank apart `from the Agency. In June 1992, tits joint. powers ;authority sold the` home mortgages. The proceeds from the sale of the°mortgages plus:,otherassets were;irrevocably_p.laced into a trust with an escrow agent to.provide':for all future debt.`sencice on the:�onds through the year _, to 2017 At June 30, 2012, approximat`ely`$28=1'0,000 of the bonds were outstanding. _,: :LL Note 10: Risk Management The City is ,a member of the California Joint Powers Insurance Authority (the "Authority"). The a 'following:joint venture disclosures are made in compliance with GASB Code Section J500103: a . w a. Description of self-insurance pool pursuant to joint pow..ers agree I`ent The City,of Grand Terrace is a mOMIJ r� of the :California Joint 'Powers •Insurance Authori the E "Authority"). The Authority composed of 11.9 Califo�n'ia pubiic entitiesand-is organized undue a:joint 4 ,powers agreement piarsuani'to California°�Gdvernment :Code;§6500 et segf 'The.,purpose' of`tKe a Authority is,,to arrange and administer,progra hsjor the 'pooling of self.;insured losses, to purchase eXceSs insurance- or reinsurance, and to;a�rahge.'f0r group•;purehased insurance°-for ,property':alla other coverage.. The Authority s"pool:began covering claims'of its members-in 1978. Each member government `has_an elected official '.as ;its repre-sentat'fve on .the ,Board of ,Directors. The Board operates through a 9-member Executive'Com mittee. i I 49 Macke g' .82,T' :City of Grand Terrace Notes'to-Financial"Statements J9ne,30, 2012 Note 10: Risk Management (continued) b. Self-insurance programs-of the Authority N General Liability Each:member government pays a primary deposit to cover estimated losses for a c fiscal 'year (claims year). After the close of a fiscal year, outstanding claims are valued. A M retrospective deposit computation is then made for each open claims .year. ' Claim`s are 'pooled :CO separately between police and non-police. Costs are spread to members as follows: the fi'rs't$30,000 V of each occurrence is charged 'directly to the rriember's primary deposit; costs from $30,000 to w $750,000 and the,loss development"reserves'associated with losses up to$750;000 are pooled based cc on the members share of losses under $30,000. Losses from $750,000 to $5,000,000 and -the �- associated loss development'reserves are, pooled based on payroll. Costs of covered claims from $5,000,000 to $.50,000,000 -are paid by excess insurance. Costs of covered claims for subsidence a losses from $15;000,000 to $25;000,000 are .paid by excess insurance. The -protection for each member is $50;000,000 per occurrence and $50,000,000 annual aggregate. Administrative expenses are paid from the Authority's investment earnings. '.:_ 2_ _ Workers' 'Compensation The City:of Grand. Terrace also participates in, the workers';compensation LL. t pool'_adrri nistered''by ahe Authority.' Each .m6m6' pays a p�i'ma, -deposit-to cover=estimated losses t '� for a'`;fscal;<,year (claims year). After the close of a`f sca`Mml year;Y outstaritling cla ms'are.vaI b'd 'A retrospective ,deposit computation is then made -fob.each open claims_year Claims are` pooled =-a separately 6e6den. public safety and non-public-,safety Each member 'has -a retention level of r, l{ $50,Oi00 for each loss and this is charged directly to the member's.primary ,deposit. ,Losses,.,from, M $50;000 to: $100,000 and the loss development .re"serve associated with .losses.up to $100,000 are pooled based on the member's share of,losses under$50,000:;,L'os_ses;from $100,000 to $2,000,000 and employer�s.diAility,losses from $5,000;000 to_, $10,000,000 and loss development reserves "0 assocI dde with'those losses are pooled based onrpayroll, Losses from,$2DO0,006116 $5000,000_are. ,pooled.Mith California State Association ofM:Counties — Excess' Insurance Authority members. Costs from $2,000,000° to $300,000,000, pre transferred to ;reinsura' -:carriers Costs in excess �of $300,0000,00are'pooled among the Members based on`payroll Protection`is provided per statutory liability uode'r California Workers' Compensation law. Administrative expenses .are .paid •from"M Autlority's investment earnings. „$� C. Purchased insurance 4� - Q Property;Insurance The City of Grand Terrace participates in the all-risk property protection program 'B ofthe Authority. This insurance protection is,,underwritten'by several insurance .companies. The"-City _w of Grand Terrace roe <, .z property rty is currently insured a ccordingly,:,;to aschedule of cove"red property submitted by the City of Grand Terrace to the,Auth`ority. The.City,.of Grand,Tetrace,.property currently �. has all risk;property insurance protection:in the amount;of$12 961,600 There is a $5,000 deductible E PO occurrence., °except for"" non-emergency vehicle insurance which" has` a $1,000 ,deductible. Premiums'for tfe coverage.are paid anrivally.and are not subject.to retroactive adjustment`s. ;a 50 _ >'� OC11-83 t City,of Grand Terrace =Notes to=Fi,nancial Statements Jun*30,'2012 , I Note 10: Risk Management (continued) d. Adequacy of protection j During the past -three fiscal (claims) years (none,,of the above programs of protection have ,had c settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. w Note 11: Contingencies As of June 30, 2012, in the opinion of the City Administration and its legal i counsel, there are no outstanding matters;which would have a material effect on the financial position of the City. o. Note 12: Proposition 218 ! c Proposition 218, which was approved'by the voters in November 1996,vill_regulate the -ity's ability,to ice• impose, increase and°extend takes, assessments,and:fees. ;Any new, Increased; or,extentled taxeS,' assessments, and fees snbject'to tf e,�provisions•of Proposition 218 reguir'e voferapproval:before they can be implemented. Additionally,LProposition'218 provides that,these�taxe's, assessments, and fees a ,. are subject to the_voter initiative process and'may be;.rescinded in the future:byfthe voters. .Note- 13:' Financial Condition and.Management Plans :o In July 2013.the.City Council-declared a fiscal emergency in conjunction with adopting the Fiscal Year (FY) 20'13-2014,budget, allowing a special_ municipal election to be held.November 5, 2013 for the purpose of con, users tax.`If the':tax is''ap:proved.by.the votes, it will generate an _ estimated $1.'1"million, in additional'General Fun"d revenue, which_will offset the :Projected budgetary deficits in upcoming;years,`and enable ttie City"to continue providing basic services to its residents. ` :ii If the tax is not;approved by the voters, expenditure reductions have been approved.to take effect _ following the .election to reduce FY 2013-2014 expenditures within budgeted revenues, thus ai preserving General Fund balance. City management will continue to monitor the City's financial Q condition to ensure.that revenues and,expenditures'a�e recorded correctly and 1a11 reimbursements are 3 filed with.funding agencies. w . 4 c .EE. �a a k 51 {Packet�;Pg:�84 p<a;` �w City_of Grand Terrace Notes.to fin :Sta ancialtements June'3U, 20'12 Note 14: Successor•Agency Private-Purpose Trust Fund to the Former Redevelopment Agency On December 29, 2011, the California Supreme Court upheld Assembly Bill. X1 -26, (.the Bill) that N provides for•the-dissolu'tion of all redevelopment agencies in the !fate of Cal iforriia:_Most`of California cities had established a•redevelopment agency that was.included in the reporting entity of.the,city as a M } blended component unit(since the city council, in many cases, also:served-as the governing board for -� those agencies). The Bill provided that,upon dissolution of a redevelopment agency, either the city or another unit of local government will agree to serve as the "Successor Agency" to administer assets, w pay and adhere.to the provisions of enforceable obligations, and to expeditiously settle the*affairs of the dissolved redevelopment agency. If the city declines to accept the role .of Successor Agency, . other local agencies may elect to perform.this role. If no local'agency accepts the role of Successor Agency, the .Governor is empowered by the Bill to establish a local "designated local authority" to Q. perform this.role. On January 4, 2012, the City Council met and created the Successor Agency of the former Redevelopment Agency of the City of Grand Terrace in accordance with the Bill as part of the City of Grand Terrace. '_ ca After enactment of the law; which occurred on June-28,-2011, redevelopment agencies'in the State of �= California ,cannot-enter, into-new projects, obligatio'ns<,or commitments.';Subtect_,6:tlie' control ,of a newly f established'`ove`'r..`sight :board, remaining 'assets .could. .only Abe Fused Ito -,pay, :enforceable _ obligations i;Vexistence at.the date of dissolution (including;the' completion of any unfnish`ed.projects that were subteet to legally enforceable, contractual Comm_ itments).`In future fiscal years, successor =; agencies will only'be`allocated tax increment .revenue in the amount •that is necessary .to spay the c estimated annual installment paymenfs 'on enforceable obligations of the .former redevelopment agency until all enforceable obligations=ofrthe' prior redevelopment agency have beeri paid in full: Q. The Bill.directs the State Controller of the State of California to-•reJiew;the propriety of-any transfers of assets between redevelopment agencies and -otheir private and public bodies-that occurred after -� January 1, 2011. If the body#Hat received such transfers,-is not'contractuaIIy committed io.a third party +� for'the'expentlifure or encumbrai ce'O those assets; tlie,State Controller is, requ red'to order the available assets to-�be:transferred to the•putlic;'body designated gas-the successor agency'by tfe Bill. �- In accordance-with the timeline;set°foiih'in the Bill (as modified-by th'e 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 on February 1, 2012. a� a Prior to that date, the final seven months of the activity of the'redevelopment agency continued to be reported in the governmental funds of the City of Grand Terrace. After the date of.dissolution, January X 31, 2012, the assets,-liatiilifies, and activities_ of the,d ssolved redevelopment agency ar'e-reported in a W fiduciary:fund (private-purpose#rust fund),in.the financial:statb f.phi§ of the City of Grand Terrace..The private-purpose trust fund keeps its activities under'the norrrial accrual method of°accou`nting: E The transfer of the assets and liabilities of the former redevelopment agency as.of,February�1, 2012 Z (effectively the same .date as January 31, 2012) from .govermmental funds to`fiduciary funds was reported;in tthe overnmental funds as an eXtraordina, r.,• p g ry gain -(loss) in the _governmental fund. statements. The`receipt�of these assets and liabilities was reported in'the private-purpose trust fund as an extraordinary gain in the fiduciary funds financial statements. -52 PacketPg:v85 I City of.,Grand Terrace `- Notes to Firia,cial"Stateinents June 30, 2012 i p Note 14: Successor Agency Private-Purpose Trust Fund to the Former Redevelopment Agency(continued) As part of the fiscal year 2012-2013 state budget package, on June 27, 20121 the-State of California N Legislature passed,,and the Governor signed, Assembly,Bill 1.484, the primary purpose.of;which is to make technical and substantive amendments to the Dissolution Act based on experience to-date;at M the state an'd local level in implementing that act. As a budget 'trailer bill,"'AB 1484 took immediate G effect upon signature by the Governor. c w In accordance with AB 1484"and in compliance with the California Health & Safety Code, the City.of Grand Terrace elected to-be Housing.Successor'to the housing activities and functions of the former Redevelopment Agency of the City of•Grand Terrace.Accordingly, all'housing assets, as define by the Health and Safety Code Section 34176 (e), were transferred to the City of Grand Terrace in a `C specially created new fund shown,as a major fund in 2012 and named "Housing Authority' in the governmental funds"financial statements.. r a Because of the different 'measurement focus of the governmental. funds (cur tent financial resources measurement,, focus) and the measurement focus , of the trust ' fun`ds .(economic resources _ y k measurement'focus).`the.extraordiri' ry,loss(gain) recognized�in the g'ove"r`nn ental funds will not1be th'e' same amount as the,extraortlinary`".galn (loss) that will.be re6ogn1zed1n the fi'd'uciary.fundfinancial k` _ statements: The difference .between the extraordinary loss recognized in the fund'financial statements and the extraordinary .loss,,recognized in the fiduciary fund-private "purpose :trust financial statements is reconciled as-follows: Q Total extraordinary loss reported in the,governmental fund statements $ 32,958,183 �. Add:.Qbo tal"assets previously recorded in'tHe govern ient-wide financial statements 458,367 us "To Add: Deferred charge asset previously recorded in the government-wide 469,964 financial statements Y ai Q Less: Long-term debt previously reported in the government-wide financial statemetns,'net of deferred amount and discount on issuance (24,347;046) z G W Total extraordinary gain reported in the private-purpose trust fund statement $ , 9,539,468 I I 53 _ _ City:of Graf d.Ri race Notes.to`Financial`Statements JLine"30,'2012 Note 14: Successor'Agency Private-Purpose Trust aFund to the 'Former, Redevelopment Age icy.(continued) Schedule of changes in.long=term liabilities for the period from'February 1, 2012 to June 30, 2012 N Beginning Ending Due Within M —Balance . Additions 'Deletions Balance One Year t° Governmental Activities: Bonds payable: _ 2004 Refunding Tax Allocation Bonds $ 1;930,000 $ - $ - $ 1,930,000 $ 1,930,000 w 2011 Tax Allocation Bonds,Series A 151,175,00-0 - - 15,175,og0 260,000 m 2011 Tax Allocation Bonds,Series B 5,650,000 - - 5,6501,000 220000 >' Less:deferred amounts on refunding (106,397) - 106,397 - - Q. Discount on bonds issued (173,484) - 9,110 (164,874) - Plus:Premium on issue 23,901 - (23,901) - Total bonds payable .22,499,020 - 911606 22;590,626 2,410,000 `° Capital leases: cc_ Zion$ 'tional,Bank 1;848,026, �-(83,4.41) 1;764,585 ,1;7.2,1 . Totahcapital leases ;'1 8481026_ _ ;' (83,4.41.) 1764;585, _ °1.72;887 2 Total long-term liabilities $24,347,046 ;$ • " - $ ' 8;,165 $•24,355;211. $ 2,582-,887 FN . r CM i a. 2004 Refunding,Taz•A11ocatioh"8onds In August of:20-04, the former CRA issued the.$13,000,000 Refunding Tax Allocation Bonds, Q, Series 20"04. Tfie Bonds were issued to refund:the $3,695,000 outstanding Tax Allocat'ion:Bond Series',1993 _A, the. $,1,290,,000 outstanding Zions First,National,Bank loari, .the `$2,780;000 qutstantlirig.Taz Allocatidn.Bond.Series 1993 B, and to finance,certain`redevelopment activities _t'�, ofahe former.CRA: Interest varies from 2s00% tq.:3.75%',-and,,is'payable sep ia_ nn'ually on Mach •' ,. _. - 1 and September,`1, 'commencing ;Mar6 1, 2005:. ,•Rgriric_ipal 'payment's are 'due annually commencing.:September 1;.2005 through'Septem6er 1,,2012. The former CRA deposited $8,241,183 of the proceeds in an irrevocable trust and-purchased ai U.S. Government 'State and Local Government Securities for 'the purpose of ;generating a resources Which Will be used to call the,bonds. .As a result, the'refuhdec].bonds•are considered to be'defeased and the liability 'has been .removed.from-the statement:of. net'assets:. The- °X reacquisition,price exceeded the;net carrying amount of'the,,old debt by,$851,1.83. This amount w is being netted against the new debt and'a nbrtized over th'e-remaining life gf the,new debt.. This c advance refunding Was undertaken to reduce•total debt,$Grvice paymeflts,_OVe►``14'y@arS,by $464;691 an'd :resulted :in an economic gain'of $631;303: The 2004 Refunding Tax Allocation = =�` Bond was traris"ferred fo the Successor Agency on February 1, 2012 as' a result`of 'the .a Redevelopment Agency closure. " 54 Packet g87 City of Grand Terrace. Notes to<Financia+l Statements June 30, 2012 Note 14: Successor.Agency 'Private-Purpose Trust FuYid to the Former Redevelopment Agency'(coribnued) Debt service payments to maturity for the 2004 Refunding Tax Allocation(Bonds are as follows: N I � O Year Ending M, June 30, 'Principal Interest 2013 $ 1,930,000 $ 36;188 w Total $ 1,930,000 $ 36,188 - j b. 2011A Tax Allocation Bonds 0 E �m In June of 2011, the former CRA issued the $15,175,000 CommLihity Redevelopment Project P� Area Tax Allocation Bonds, Issue of- 2011A. The Bonds were issued to finance public improvement projects pursuant to the 'Redevelopment. 'Plan and for ot[ier-redevelopment activities,of the Agency. Interest varies from 2 00%o to 6.006/. and-is,p semi ayable annually,on March 1 :and September 1, commencing September."1;,-2Q.11. Princil`al. a meats are due . ,,. R.. P_. y . annually commencing September 1,, 20..12-through,�SeptQ.n 1, 2033,. Tt e'Bontls'are payable -Fs i:, '<.-<�,,. ,• ,. •., ,,ace, ;r,- ,..'. — ._ froiia'and secur.`ed'by;a Ppledge`of Tax lncrem'ent,'';less'am'ounts"required,to Make:payments under the'Pass-TFiroiagh Agreements, ,annual debt`seniice of tfe 20,04 Bonds'and,thea,Mousing Set= Aside amount. The.2011A Tax,Allocation Bond was`transferred 'to the'f'Successor Agency on N February 1;2012 as a rdiat;of the Redevelopment Agency closure. f to Debt service'payments'to maturity for the-2011 A Tax Allocation Bonds ar l as follows- o , .a Year.Ending , '.J_une,30, - :Principal Interest 2093' '$' x .r2s60,000 , '$ 841..795 .fit. 2014 280;000 836,595 =S• 2015 285.000 828;�195, LL' 2016 295,000 819645 2017 310,000 807,846, _ 201872022 1,730,000 3,840,525, Q� 2023-'2027 2,220,000 -3,348,600 Q -2028-2032 6,580,000 2,195,100 :Q 2033-2034 3,215,000 . 292, Q X w -Total $. 15,175,000 $, .. J 3,810,500 cc i I ' 55 P cket Pg_=8 Cityof Grand Terrace Notes to Financial'Statements .June'30,2012 Note 14: Successor Agency Private-Purpose Trust Fudd to the Former Redevelopment A 1enc ., g y(continued) 1c. .2011B Taxable Tax Allocation Bonds N r In June of 2011, the former CRA issued the $5,650,000 Community Redevelopment Project Area Taxable Tax Allocation Bonds, Issue.of,2011'B. The Bonds were issued for the purpose of acquiring land for resale and development in the Project Area. Interest varies-from 7.10% to 7.70%.and is payable 'semiannually on March 1 and September 1, commencing September 1, w 2011. Principal payments are due annually commencing September 1, 2012 through R September 1, 2026. The Bonds are payable from and secured by a pledge of Tax Increment, less amounts required to make payments under the Pass-;Through Agreements, annual debt service of the 200.4 Bonds and the Housing Set-Aside Amount. The 2011 B Tax Allocation Bond °a was transferred to the Successor Agency on February 1, 2012 as a.result of the Redevelopment .) Agency closure. 2 Debt service payments to maturity for the 201413 Taxable Tax Allocation Bonds are as follows: _AL Year Ending June 30, Principal linterest .2013 $ 22i;000 $' 419,0" Q 2014 235;900 403,470 N ' 2015 255;000 386,785 1 2016 ,270;660 368,680 2017 290;000 349;510 2018-2022 1;800,000 1,406,7.50 V 2023-2027 2,580;000 626,01A , a Total $ 5,650,000 $. 3,960,295 'c d. Lease Payable != On August,.28, 2009, the City entered into a Lease Agreemeht (Lease) with Zions First National Bank in 'order .to refinance the 'City of Grand Terrace Refunding 'Certificates of Participation, `at Issue of 1997, which was issued to finance city-hall and ,other public;improvements. The City , used tthe-proceeds of the Lease of$2,1,62,000 and fund"'o,h hand of$358,000 to current refund ra the$2;520,000 of outstanding'1997 Certificatesof-Participation. Under`the-Lease, the'City is to x lease .property to Zions and in return Zions will `lease the property back to the City .in consideration"of the.payment by,the City of semiann_ua`l lease payments commencing,March 1,_ 201'0 through September 1, 2020,at 4.76%interest. The lease'payaple was identified'a"span of the former,redevelopment agency s.long-fdrrn debt.-l ,e-1ease was transferr"ed to the Successor Agency bn February 1,2012 as a result of the Redevelopment Agency closure. a " 56 City.of Grand Terrace Notes to Financial Statements June 30, 2612 Note 14: Successor Agency Private-Purpose Trust Fund to .the Former Redevelopmerit Agency(continued) Debt service payments to maturity for the 2009 Zions National Bank lease are as follows: N T_ Year Ending M June 30, Principal Interest 2013 $ 172,887 $ 81,961 2014 181,213 73,633 w 2015 189,943 64,966 cLc 2016 199,091 55,756 2017 208,681 46,1�67 2018-2021 -812,770 79,195 0a d o: Total $ 1,764,585 $ 401,618 c c On September 1, 2012. the Department of Finance for the State allowed a debt service payment LL of$127,424 f_.or the 2009 Zions National Bank lease. However, the"De'partment of Finance later indicated that this loan was not an enforceable obligation"of the Agency, and therefore, denied a paynient.for the second debt service payment which was due on March ;1, 2013. As of the date of issuance, this payment had still not been made. N Note 15: Subsequent Events 0 a Subsequent to October 1, 2013 the following events occurred: "Declaration of Fiscal.Emerpency =. In July 2013, the City "C6uncil unanimously approved a resolution declaring a`fiscal emergency. This LL action was taken to enable a special municipal election to be held in November 2013 for the purpose of considering a utility users' tax to provide additional General Fund revenues to the City. Without this c declaration, ,a tax measure could not be considered until the next regularly scheduled election in Qi November 2014. M ,x w c m E 57 _ �Packet�Pg°.-�9Q City�of Grand Terrace Notes toFinancial Statements June 36, 2012 Note 15: Subsequent Events (continued) Special Municipal Election to Consider Utility Users'Tax In April 2013, the City Council was presented with a Five-Year Financial Analysis and Budget o Stabilization Plan (Plan), which identified projected ongoing budgetary deficits in the General Fund Q \ and the depletion of General Fund reserves during FY 2013-2014 unless,action is taken to increase revenues or reduce expenditures. The Plan identified three options for revenue generation: a local a add-on sales tax, parcel tax, and utility users' tax. Following review of the Plan, the City Council w appointed a community-based Budget Advisory Committee to review the Plan, along with overall City finances, and make recommendations to the City Council regard ing'budget stabilization. �- t � After holding a series of meetings, the Committee submitted its recommendations to the City Council °a which included the following elements: (1) unanimously declare a fiscal emergency; (2) place,a utility users' tax (UUT) initiative on the November 2013 .ballot; and (3) set the UUT rate such that it would generate an additional $1.5 million in"annual General Fund revenue. After receiving the Committee's recommendations, the"City Council conteacted with an election advisor .to -conduct a community opinion survey and advise regarding the UUT rate-and timing of a special election. The_ election 'LL advisor recommended a 5%o UUT rate.,with 'the special.election'to be November 2013. The-City Council.approved these recommendations and adopted the+necessary resolutions to;'proceed with a November,2013 special election. Ata,rate of 5%,�the,•:proposed UUT will I-dpn'erate an estimated $1.1 : million in annual General .Fund'reveriue. V1%hile falling .short of the `Budget Advisory`Committee's C4 r recommended-revenue` get of $1.5 -million,•the estimated $1.1 million�in additional revenue will be c -' adequate to,continue providing tfie current level of municipal services with .the existing staffing. The special municipal election will-be'herd November 5, 2 '13. -if the tax measure is not approved by the voters, expenditure reductions have been -approved as part-of the FY 2013-2014 Adopted Budget ,Q which will take effect following the election to reduce expenditures within budgeted revenues, thus preserving the current level of General Fund reserves. c- ii c c a� a ;z x W ;r a 58 _ Packet,�Pg=91 X m m C. c� Q. c -a m 3 m O O O O t FA);j °; i �.t Attachment: Exhibit A Annual•Financial•Report_6.- I'(Annual Financial Report-Year Endc �30/12) i� Requ!Mdl,,Swpplementary Information City•of:Gra6d Terrace Budgetary_�Comparison�Scfiedule General:Fund For.the year-ended June 30,'201'2 Budgeted Amounts Actual Variance with M Original `` final: Amounts. Final�Budget L % REVENUES Taxes $ 2,308,159 $ 2,400,159 $ 2,379;612 $ (20,547) w Licenses and permits 572,410 512,410 638,036 65,626 Intergovernmental 93,175 84,000 96,494 12,494 Charges for services 1,178,700 1,178,700 1,103;323 (75,377) Fine and forfeitures 12;500 12;500 20,355 7,855 c Use of money and property 53,130 5 3,180 40,941 (12,189) XL Other 301,000 301,000 .307,847 6;8.4.7 0 Total revenues. 4,519,074 . 4,601,899 4,586;608 (15,291-) _ EXPENDITURES LL Current: General.government 1,290,582 1,336 842 1,126,440 210,402 s �' ,Public safety 11:902,317 11808;086 1,7701,817 37,269• =Q N , Public woks 729,887 714,887 606, M 108;433 r- i i Cultural and recreation 1,131,259 . 1,112 083 1,1,17;024 (4,941) M Debt,-service: io Friricipal = - .26,507 (26,507) a' Interest - - 2;312 (2,312) Total expenditures 5,054,045 4,971,898- 41-649,554 322,344 Excess{deficiency)ofte'Venues _ c over(under)e-xpenditur'es (534,971) J369,999) (62;946) 307,053 LL :CCU, OTHER FINANCING SOURCES Proceeds from sale of assets - 365,897, 358,374 (7,523) a Transfers in 519,497 519,497 363,587 (155,,9110) m Transfers out (5.9.,660) (61,160) (74,084) .02;924) x LU Total other financing c sources(use's) 459,837 824,234, ;647;877. (176,357) :E Net change in fund balance (75,134) 454,235 684,931 Fund balance- beginning of year, as restated 202;029 -202,020 '202,020 - Fund balance- ,end;of,year $ 126,895 ;$ 656,264 $ 786,960 $. 130,696 59 Z:' � :PacketPg.�.9.3=4' f I Required SupplementaryInformat'ion City of'Grar-d T,e`rrace Budgetary Comparson..Schedule . Street Improvemerit Fund For the year ended 1 uhe 30; 2012 Eiudgeted Amounts, Actual Variance with Original Final, Amo uI nts Final Budget T REVENUES "Co-,CD Use of money and property $ 2,000 $ 2,000 $ 928 $ 928 Developer fees 5,000 5;000 12,448 - 7,448 M c Total revenues 7,000 7,000 1,5,376 $ 8,376 m Excess(deficiency)of revenues } over(under)expenditures 7,000 7„000 1,5,376 8,376 c Q. OTHER, FINANCING SOURCES (USES) 0 Transfers out .(202,611) (307,611) (1I7,012) 290,599 .� ,c Total other;fnancing .x sources;(uses) (202,'611.) (307,,611) (1�,012) 290,599 Net chan a in fund balanoe 195,611 300 611� a' 9. ( ) ( ) � (11,636) 298,975 " � N Fund balance-beginning of year 1,204,151 1,294,151 1,294,151. - o Fund balance-,end of year $ 1,098,540 is - .993,540- $ 1;292,515 $ - 298,975 I 0 cx C cc , c • c Q� a t :x :w I i 60 f �packet��Pg�94'� Required.Supplementary Information City of G'eand Terrace Budgetary Comparison Scfedule Redevelopment Agency Low and,Moderate-1ndome`Housing Fund For year ended June 30,'2012 N Budgeted Amounts Actual Variance with c Original Final Amounts Final Budget Q REVENUES Use of money and property $ - $ - $ 1,077 $ 1,077 w L Total revenues - - 1,077 1,077 d EXPENDITURES 0 Economic development 509,822 509,825 386,280 (123,545) 509,822 509,825 386,280 (123,54.5) Z c Excess(deficiency)of revenues LL over(under)expenditures (509,822) (509;825) (385,20`3) (122;468) OTHER FINANCING SOURCES a (USES) Transfers in - - 91,228 91,228 M Transfers out (620,563) (620,563) (6,026) 614,537 0 Total other financing sources (uses) "(620,563) (620,563) 85,202 705,165. @ EXTRAORDINARY AND SPECIAL ITEMS 4- eo Loss on dissolution of redevelopment _ agency - - (2,154,479) (2,154,479) Q� Q Net change in fund balance (1,130,385) (1,130,388) (2,454,480) (1,571,182) := .a s Fund balance-beginning of year 2,454,480 2,454,480 2,454,480 - :w c _ d Fund balance-.and of year $ 1,324,095 $ 1;324,092. $, - $ (1,571,182) E Q 61 =Packet�Pg;i95 , 2 0 � 02 , ] o a � E ° to % A. ■ ] / = m m_ d � � 4 Uc C y ƒ. , • %2 � �) :! _ � �2 y[ \ At chmenl'ExmmlA=Annum Anance[RepoML6 2,(A nnua| nB§dm Report.Yea End( 3012 :•tip r + .yk✓:'4' ,City of-.Grand Terrace Combining Balance�Sheet Nonmajor Governmental Funds June 30,2012 Special;Revenue Funds N Storm Drain Park AB 3229 AirQuality c Improvement Development COPS;Fund Improvement ;° ASSETS aa) V Cash and investments $ 72,273 $ 234,861 $ - $ 60,911 _ Interest receivable 18 56 - 14 Accrued revenue Due from other funds - - - - Due-from other governments - - - 3,749 Q. m Total assets $ 72,291 $ 234,917 $ - $ 64,674 LIABILITIES AND FUND BALANCES Liabilities: <� x�. Accourits-bavable $ - $ Accrued liabilities - - - - " CV' Due to other funds - - 433 - T' Deferred revenue Total liabilities - - 433- - o Fund balances: - Restricted for: Public'works - - (433) 64,674 Community development - 234,917 - - LL Unassigned 72,291 - - - �a c Total fund balances (deficit) 72,291 2341917 (433) 64,674 a� Total liabilities and Q r fund balances $ 72,291 $ 234,917 $ - $ 64,674 X W C 'W _ Q 62 Special Revenue Funds Terrace Pines Total Special N State Traffic Facilities Landscape and Revenue M Gas Tax Safety Development Measure-I CDBG Lighting District Funds $ 122,461 $ 6,450 $ 181,251 $ 200,801 $ - $ 4,351 $ 883,359 w 29 2 43 49 - - 211 - 9,233 - - - - 9,233 - 30,437 - - - 30,437 37,513 3;847 - 26,657 - - 71,766 a m $ 160,003 $ 19,532 $ 211,731 $ 227,507 $ - $ 4,351 $ 995,006 C cU c LL � C $ 14,642 $ 2;316 $ - $ - $ 9,378 $ 1,322 $ 27,658 Q, 1,564 _ - - - - 1;564 w - 30,437 - - 32,7.88 - 63,658 •io t I 16,206 32,753 - - 42,166 1,322 92,880 0 143,797 - - 227,507 - 3,029 438;574 ._ - 211,781 - - - 446,648 LL,- 1.3,221 - - 42,166 - 16,904 c 143,797 13,221 211,731 227,507 42,166 3,029 902,126 Q a' $ 160,003 $ 19,532 $ 211,731 $ 227,507 $ - $ 4,351 $ 995,006 B w .c i d :E Q ' 63 v CD a iv CD 0 a►j;j �,+; Al • Attachment: Ek'hibit"A,Anrival-Financ"ial•Report_6=30'-12:+;(Annua'l FinancialReport`-Year Ended 6/30/12), j - •��,3:D�a £' I City of Grand Terrace Combining Balance Sheet No`nmajor Gove.`rnmental Funds June* 2012 Capital Projects Funds Total Barton/ Capital Capital Total Capital Nonmajor Street Colton Projects Projects/Bonds Projects Governmental M Improvement Bridge Fund Proceeds Funds Funds ASSETS Cash and investments $ 31,826 $ - $ - $ 66,625 $ 98,451 $ 981,810 Interest receivable - - - - - 211 c Accrued revenue - - - - - 9,233 W Due from other funds - - - - - 30,437 Due from other governments - 43,947 - - 43,947 115,713 , Total assets $ 31,826 $ 43,947 $ - $ 66,625 142,398 $ 1,137,404 e m LIABILITIES AND FUND -BALANCES 2 'v I � Liabilities: Ca Accounts.payable $ - $ - $ - $ 66,614 $ 66,614 $ 94,272 Accrued,liabilitiess - - - - - 1,564 .ca Dueto''o'therfunds - 31,263 21;821 - 53,084 116,742 c; Deferred revenue - 43,947 1.5,000 58,947 -58;947- Q" Totalliabilities - 75,210 36,821 66,614 178,645 271,525 N Fund balances: �I Restricted for: � Public works - - - - - 438,574 : Community development - - - - - 446,648 ' m Unassigned 31,826 (31,263) (36,821) 1.1 (36,247) - (19,343) lY .0 Total fund balances(deficit) 31,826 (31,263) (36,821) 1;1 (36,247) 865,879 Total liabilities and 5 fund balances $ 31,826 $ 43,947 $ - $ 66,625 $ 142,398 $ 1,137,404, LL ' al Q w .Q :C W C .E -s v �a I Q i f 64 Packet��P,g`;1.00 City of:Grand Terrace Combining Statement of"ke enues; Expenditures, and • Changes-in-Fund}Balances Noninajor'Governmental:,Funds or he year,;ended June 30,'i 2 N Special Revenue Funds M . co Storm Drain Park AB 3229 Air Quality Improvement Development COPS Fund Improvement. _ w REVENUES :L Ca Intergovernmental $ - $ - $ 100,067 $ 15,189 Fines and forfeitures - - - - Use of money and property 158 535 - 123 0 Developer fees 5,231 756 - - Other - 50 - - Total revenues 5,380 1,341 .100,0.67. 15,312 = -ca EXPENDITURES Current: Public safety - - 100,000 - A Public worrks - - = -5,775 Capital outlay: Project.improvement'costs - so Total expenditures - - 100,000 5,775 0 -Excess(deficiency)of revenues over(under)expenditures - 5,389 1.,341 6T- 9,537 0 OTHER FINANCING _ 6 SOURCES (USES) Transfers in - - - - Transfers out - (2,716) (500) 927 =Q Total other financing a sources (uses) - (2,716) (500) .927 _1 I Net change in fund balances 5,389 (1,376) (433) 10,464 ; Fund balance_s (deficit)- 'E beginning 66,902 236,292.,. - 54210 Fund balances (deficit)-ending $ 7.2,291 $ 2341917 $ ., •:(433) $ 64,67.4 x 66 li i • � I I I N` Special Revenue Funds CD M Terrace Pines Total State Traffic Facilities Landscape and Special .a Gas Tax Safety Development Measure I CDBG Ligg° stricevenue Funds• htinDi t R Fd C i w $ 358,801 $ - $ - $ 257,218 $ 15,550 $ 11,701 $ 758,526 - 54,553 - - - l - 54,553 209 (129) 545 480 - - 1,921 p 3,082 - - - 9,069 d _ 50 2 359,010 54,424 3,627 257,698 15,550 11,701 824,119 = fi7 38;240 - - - 138-.240 50,188 12,530 .361;094 'N cod , 292,624 38,240 - - 50,165 12,530 499,834. `°a 66,386 16,184 3;627 257;698 (34,615) (829) 324,785 7_ 1 LL 72,664 1,420 - - - - 74,084 c (83,864) (3,312) (188,345) - (1,112) (278,923) _ (11,200), (1,892) - (188,346) - (1,112) (204,839) 55,186 14,292 3,627 69,352 w (34,615) (1,941) 119,946 ,;.; E ,88,611 (2T,;l3) 208,164 158;155 7,551 4;970, 782,180 $ 143,797 . $ (13,221) $ „-. 211,731 $ .227:;507 , $ 42,166 $_ :3;029 $ 902,1.26 Q � I - I ' 66 • :Packet�?,ge:102-�, - 1 - q3 57 'V City of Grand,Terrace Combining Statement of Revenues,Expenditures, and '6han6e's in,Fur413alances Nonmajor Governmental-Funds For th`e year ended June 30;' ' 2 N Capital Projects Funds Total c M Barton/ Capital Capital' Total Capital Nonmajor m Street Colton Projects Projects/Bonds Projects Governmental Improvement Bridge Fund Proceeds Funds Funds REVENUES C Intergovernmental $ - $ - $ 671,094 $ - $ 671,094 $ 1,429,620 ui Fines and forfeitures - - - - - 54,553 Use of money and property - 63 11 '74 1,995 Developer fees - - - - - 9,069 Other - - - 188,504 188,504 188,554 p s�. d Total revenues - - 671,157. 188,815 859,672 1,683,791 EXPENDITURES t� Current: _ ,cC Public.safety - - - - 138,240 Public works 210,702 3,719 707,97,8 - 922,399 1,283,493 11. Capital outlay- Project improvement costs - - - 188,504 188;504 188,504 C Total expenditures 210,702 3,719 707,978 188,504 1,110,903 1,610;237 Q N - r Excess(deficiency)of revenues c over(under)expenditures (210,702) 3,719 (36,821) 11 (251,231) 73,554 OTHER FINANCING != SOURCES(USES) -,Q. Transfers in 210,702 3,572 - - 214,274 288,358 Transfers out - - - - - (278,923) Total other financing' iC sources(uses) 210,702 3,572 - - 214,274 9,435 _ Net change jn fund balances - (147) (36,821) 11 (36,957) 82,9891 ' Fund balances(deficit)- beginning 31,826 31,116 - - 710 782,890 QI Fund balances(deficit)-ending $ 31,826 $ (31,263) $ (36,821) $ 11 $ (36,247) $ 865,879 =' :E •k W ad E Q 1 67 vPackets�Pg 1Q3- t fiw�; °RpOGERS'A,g MRSO 1�1,MECLC.D1' SCOT3",i-1P I I r.. ..,;..•...�....-�.W. ?...... ��.k-.�.;v.•-_;.at "p.,--�.�,. ;CERTIFIED"PLSgLtC fACCOUNT�41VT5=fSMGI's94'B'! 73S',E;Legie.Cir:5tii[b'`:TUfY'; Sin>�esnacilinb:rCA .c56J�._ 4=536If�F" � I - rr« =M?m The=Hor-o able,C't Coupe l h v St i'cYA rand Terrace 3C)vf� City,of G ,, d 'C r ,z��,�v •.wi54,,,:reA,�:,3a:ccria Grand TeTra'ce; li fCa _ adiw`r`riii,„p:'e:�R:c�r�z; •.. - - ` w 1 Cer t 5i i�ttifjg;:GC'rti;;MSTGIyF)1 d iay��t.."t_`eoctici.a-PA rv',1r":ptl rguc d 1Ne';aiav_e audited;the friancia_l-stafemerif's'.:of fh-e'<' overnmental:�acti�iti' Pljil}iFT:Nt„Willler:,PM'i'f'u,u>eFaF,IYCnti;j ,.Q.• -,. eS .' - _ -.... .- ., sa.n ��'�t_s.:,c..V�y:;,'t'iSy �i-' _ �::�•:...-._..:.a.a:.�.. *>t_c,.. the bu's tress'=t 'e <a_cfiv ies a : ' J it•; ,:,, ,ach major funi ' ;and: the .a re ate o M aivAd tzs:�s'A-'-- �e I.A0 in"fund`lirifor atton o =the``G - - - '-"g m " f ,ty:of Grand'.Tercace (the:C�ty:)rfot-the :; ;,' 'i z•. ycV'-_:.. :F'::', ear :-,ended. 'June >30.r, `0'_2 Rf fe" �_j,��,,: ;2 ,ou ss oval, standai s ;require; that;Me - Es.�JG�€�"A etch t,•Ct�.;risa`A :=r+:. .., z,. .., :,,d ca ' ov de`-:au:'.vvith iafo`rma lop ;about.jo_ur.:.res-onstbilities-�,under'r en"erall CL :: ,t,'c :<;u .p- ::.�-'.5,.:':y'. ' , .w.• �• ...n- „r ..�.v. per.. .:,.t... t tp641, ar Th; �p,.A,:h»a: ;accrep%tzed;;au'diting ;standar�st,(and s:"if�applicab(e, ,Gavemment Auditing. T1.lfli .:Iv,tf�oY.rvC)'3 J ti%�. fstanlfar�s) }'` a l,z.= 3 a: _✓� _• M zas,}well gas,certain infortt ation refatetl%;,t e,,,plannod scope: .,LL p ,an d�fiminn of our'kaudit ' ,`e have cornmunicafedstchnform`rx' $cbi'wl} Gh C%X.'Cl'AillttA' :J:: h 3 iE rp,r "?"^ p<x.�,Y v ='t.� s;:' :'.! },"r ":a.e -iue:�z,.s°. !•aY:`a�r`1.a,.y =7r letter to o r. w'.. 1 �2Q,1:2;;Professional.�4�sfan°ards��al"so •_ fe. u'reathat�gve communicate Ufa ou'3the'fiollow n :information :el'ated'fo •;17)triiktT l"cG�nCr;:C(?;�=r1 %l.. ..q ,� �,:-uL,.f, r._ _.... "1,'�,`:- '� •,€ =� ""I _•$;r _ - our=audit: f3�viti D klenviiibif.'CPA + .. , V i•; ;:Qiialita�'i.�e,�As ecfs:ofAcco.unt�ri° Pi�acfices ' IVlana en ent,5 is-res _ons f e' fo'r t - l' ' " ,9._ p, _ ,1.,. hi1..,selection -?and,.use: °of-appropriate ""'• :£•4. .� «��. ., 'fin. : �,.-`le ,� eM-''kv -p f -Y•��,'e+. h j4 accounting{;policies The`signrf~icant=,,.accountingolicres,;used`=byfhe C ity` .`':h:'-"":' ,ri':��+'_r'«.X ".z�•ti 2;..0 .f Nv^"�.+`-, 'tc,<-A.;:i.�;:w.,• - 'sEt,�,x)" -:,.k ' -� areudescnfed;inNote. 1' to°R tie-fnancralsfate , merits As'd dcr,tbeclFtin#tie, o' y`•.r._, __ - ..r,�,,�s-,,.-- .-�'"jvii' �..'':,:3"'.';1�'. ".'?Si:':.a'=;r'•:o:{:q:`.s r"y:tri, - �,::a+u. notes Goff the f nanciaf to em bW ttie C�f�/ than ed accounttn ottcies_ - a •t•�•<, ^:. _ i�r°rr. - _,{;;. Y,...L ;rt7, .;,��$>9::s%;z"z i g,.p',. ;'related fund btilancer�r - .` eportmg by'adopttng Statement of:Governmental t.r �.:,b, SS Accountujg; tStandarcf {GAS& ;Statement); ,1Vo t54; 'Fund' ;Balance' .Reporting aynd Governmental 1=und Type Definitons.a";in 2012 `1{Ue,noted Aw ino transactions:entered into'by the;g;overnmental rin�t during the year jfor which "there:, �s a lack of author�tatwe",_guidance or '.:consensus All x stgnificarjt_=transactions have been recognized�n,fhe,financial statements in'theryproper:peratl .. ^ . rizN.ieEa_ G..;: .c Qcc`ounti e i `R ements „�._ _rig st mates.. ace: an: <integeal'. part 5of Ptte,,financiaE,_stat :" c,f...=`::iii 'rsii�i` 'ok �, r4: W a-.: ,y.,.. 3 _ N. "sz`=; :,. .� :. .: .,,_ , - ,Ar�c„tc. „1, _ Vic,, - �^ -- _ :.fE,'~;':::.T �.�,.' ,�t-:... _ „ _ .� 'c0. - 1='re-aredisbl, mai a :ernent.at d:are ;based'ori'Maria ement>su=:_knoinrled e 'ar 3tiul`.fiut�cyll�caufiFlr ts. p. ,:p. �'' g, :...:, s, . >.wg,:•- - g r+ 4 ' ?YFtiz.ft.1�+-.I;W, :,:lei'. y.9, 'i?.`.%,..-.t,.H ri ice,.... _ ..+ii#.'_''.�,". land. experience}about;past and'current3eventsLLand iassum"'ttons'about 'pre_--'. .,}<,.-�:ta% `it-+'%"w.' .a.L^,.ir.:`a¢�,-a.yr:.�-..K•.v;,.. wtg.r,-i,;_N�.-, +z. _:,, ,f'-,-.,,,,, PCJ;'S;4f;i;t/ItGPAtlflinncc �`'- --e �iti::,.--,:.'was _ ;:-:=<...' - future;=events:• Ceitainf;>aecountin ;estimates' ";are articularl;' senstf�ye fili•.f,.`1?!4?Fir`jet :r: :: 8- :t.�,_yam. t useof tier si' -° R.yr....:.z•....y$:_:;-.:r:. '-':,_' ;.beta. t, �_.gnifc'ance#o•tlto:financial>=sfaterrieitsand because.of Cr�vctnrrecntoJf},rirt• �, i a. 'the ' ossibiht that #utureevenfsaffectm fihem �t�)tir)er cct)�ri•. :: P, Y ) r ;{. � �.,.y g.. ;rnay:��,clrffer"�:srgnificantly; • 1 �,.-,.g r. ,>:2:#'( Y. "}cN_`�L..s.*,'y ._�:.:. i:'r.. ;fix,tiv..s;.'i,•" "�e:..:.__.,s-.',',a?i„-'r. sf'o those: e` ecte_d: Tfiere:;wer."ej no. i""oificant ;sensitive: `estimates C:2fiCarniS;Se)r;i�ty"of r..,,r,u• :. 'affeCt•. .•" �-;;",," �r:>-.,,�,;.,: � <. - . ..�..�:.�_ z,,, �vs,,..;a,--, ., GrCiEir.'e1 FitU1%4iAccouncaii[s" lrlg,tflC'.flrlaRCtal"StafeTl7ell S' Tie=:dscl5a aces 'in fle fnancial rstafements':are Fieufraf consisfeit:'and :clear" � I Tagtif =acci4cr ; _ 'fiFRtJST; xPacket=P� 1.04" . e� 201,3: Thd Hor o�O&'TG Cour,cjl, 0ctob,r a:�.'z A,13 C fy':ofi:Gran `T f F.age:2: -Dff�culties�Encoui%�eredYiR�Performing.tFie�Aua(it� _ 1Ne=;eneoiariteied no s�'"nifaarit :difficulties, n.:;daliri` viitl naha emerit `in ' erfomiri aril completing our autl ; Cor�ecfeal:andUncorrected�Mssfafein_.enfs d l?rofess oval stand''arils'r-'e.�u re::usrto'accutriulate. all known:and jikel�J rni"statements identified _ ;f, j;, ram-. "r vials.'laid::c'o` u` 'irate`.the -to'tfe auxin"" `ffe' audit other'a} ai`'tl%ose .1xi'at aye.;':clearly' t.i. rnrn ,n- _rij _.,,:rr.;,,:,7J=r:?a' - - +•g= ,.`.�..,•�y; ',`•s.: r .: Y:J ;t':.y ••,dr, - ` Y "`"a""menf: �Mana"emenf><tas. eorreeted';all ;'sued rriisstatements: In appropriate ilevea;. of Sian ge g _ ..1.� -- 1 �;a-�'t'.�F' `Y;:.+ - .?3+F +7?:.1''t'fi• w'.K::Y., _v_i:+L:':_PS, ,.'i.., ,. .•.. .atldifon fione:of_themisstaterrients-detectea,as'a:result,of,audif roeedu[es and:co: acted b" •-:,g_ - max, ' . �. , t?. -.r ,u:. .. ,. __ �R ..r.:._�.:-<X `v duall. 4r :in he %a' re- ate, =to each �o"'n on:-units o management'>wee' ;'material, Veith:er° ndi ,. --__ •y =t..e. ggg__.._._, . ._. ._._...._ p .,_._._,: ' .pj•,_-•::: ,'r�"' :.•d -k. .._ .. - Q� f np,cial fateinenfs_taken:as a:whole:: CL lY Disagreeinentsawiff.,Manageirer�t «.�vi:.r.;�'r::.{l.i..�-+k•.<'�;a-a5::•. .',•.h'i`97.: ;� r..Yr••:�-':,.,t-.1?�e..'.1 `--0,.;":- ores o#=thisletterr: rofessional=standards:defrie,a',disa(�ree. entrwith,mana/'�ementasa i�.. ,:`. •.l.;fY' .l'��,-�<wi'_ - .•ero. ;:eq..y., �y.Y '.:�w... `w7.r-, �4 ._',W,�.' �:�•"'i.`.7.a• s,-cs::�. _':t-. i=.'/�i•. ,t. - ..� '.:C...�'s:. financial aceouritiri"``-ire-'ortin `o auditin :'matter;:wtethe or;,nat"resolied:=toeour<rsatisfaction - ",i�. ..r;::� ;.Y '.'z,�;" \+^.t., rr.',c>;r .y. +r'-'ti,!;s;4:..-'4,•ve.,�::y`a::: ._rj. {r irtr•,`,..•s�.z-w,.� x.-.Z,w•(+! .�: 3.•.f.,jv�- ��,.'- '.:k;. .ti Y_ ,'CYO `�`: !r_'S:r�_e,.' �:i'. +...1 _ �.='• r:: _��_�.`.i:g`•..; that<could�;be'�si� nificant,.to�the�fin'�ncial�state►nents�� r he,;at�dito`�s�re•'ort:'�lNe':are:., ,le�ased:;to _�- e o'itytiiat no:such disa'"�e`emaentsar:'osedurn the';courae of our audit: ,Managemen#Represenfatons� :� 1Ne sl ave ,re'=nested cerfa n re`r'senta Ions 4f 'mana'ement= ttiart;, are" ;includetl managJy ernert'cepfesentation letterdate'd;41CtObEf1;:2Q13 it ..... - - :Q - Nlarragement Cansultrons,wifl%Other:fitlependentaAccountanfs: 7 . ,.yy, - ' ... is�: - ement ma :decider76,',b6h "4 f In`some;.cases rn otiesaccoura{ari4s;Aabtiiiawdtin anitl. ac-_ `:S.e x�='. >!�. $`'r' ',,�{ai.,..t:•-5:� cou- tinQ y rri�a..,t-Wte.�r s .-•s,...,i?m'lica-f' :to�,; o::.t«if;ra-ini.n�^�'9i.�;.�U.ac.r�; s^rue:iaLc•d:itd:b''�::o�p`."'i'nio:,..n:�.:<'':>o:n..nat.w:, cha : snc .lt oth ov ;�rn�ren�rmetYaein� nit-t,!ou,nf'..s. :ae. :co e ion .5maccou ti e ; lwsn-'n6-,:6a1 -.a �:dstea.,t1e:,,rm..einrnet.s�t;t=qatu;;rt�l%J"�'�oc=fo�e,'n s,s.s`_uio lntaanl t sY hta-a_snd4 aallr=dths�e:r:�r`e'`luevraen`at>7�'fea�cctosn`sTuo�lt'-ionu"r�=r�:i k�;:_n_c_o.c:}_maSowu.t.endt_am;a gborateiminaist o ri.,ar,,=t,,,:•.�=ttto:hu;fe�c riee rctke�r�w:'e:fnho-�Ax u=_bss u y e' te;m w x_corsultatioias"'witk►Totfaer,aceounfants; . E YOflierAualtFndrigsor�jssues _ a�:+i+a` :4_ '•'�e:y.ds: -- _ :�.. .t: -.F:'a:. ..: _ Y,..S., - ' :` ; : iaiieti`:of' a ens +ncludin .athea li'catron:of'account�n nnci"'°le5;and V4le,;generally discysska.•r.t, y= m ,, .9:- � _ - 9P-, audt- .r'tcL _C.v: •✓:. :A,,:. 'y'3-:ter. .rt_,• , . `k` x ' sthe.: over:.me" a- in `=stancfar"ds'' ;wwtl ':n'anaement:eael ' ear; `norao'r efention a n rt. tunits .•r,9 .:, :.>.� 9.,..��,�-. .,. Y. �P �r,. 9.1...,._ .:�r...�.., _v':'rs.s.- ".'''''el, i':w +.. -..hy=-".i''i�:"„'S::..:��2i:�.;'• ;auditors'::sHov+wever:;•,^fh'ese< ;discussions occurred ,ii <:the ,normal-course.'�of'';ou rofessional relationship`and�our''cespo:nses-were.=nota:conditionafo�to.Ur�cetention ,. J:.s.'.'.#•*,3�:.�'_ _'y'�"'y%� <«:.'r:,4 _.C,.'C:.•," .. „'. .'1�-',=`�'-uu�SL'` �3t ` .. •';''��'`�::%h.tp,?a•etMrrtf':�r.�,;;.ifa;.'a:.'.=:i+...r._�k�r'od'.,,.C;�i' _- _ ° �.,�t�_ �.,-�."•�.,,�:' `TheHonoratle>C'it `Council' 'Octo�ier�1�.20:1�3 Cit�rof"4Grarid Terrace- Pale 3 1 t :Offier=lriforriiatiori »Documents-Conta.r_in A�udited'F�nalcal"=Stafemenfsj ' to= had 'le'merifarinforri5atio m `i �`t ithtrespect; fe: p y- n acco parry.ngnthe=financiafvsta4emeiits;`we:,made r f.f:., - ceitam inqu r es.of management ar d.evaluated th J,corifent igO,',MOP of preparing thek nformat on.=ta=tleierrr ine:''that the: mforrriatioii;complies ,with`acco_untin rinciple5 :generall acre tedinahe`;Unifed StatesAof=America ate.m:et od of:." e'.ann ltt.:has not:char='ed, rom the ,..n ,.^... 'fit" xL.r.=+ - ?. - 'ii �s a' `row and'com lets==:iii_,ceta'tion, to ur"audit of"'`the d prior per qd ,and.;�t,:' i forrrm.at on _ pp._ pn:ate p-„.M ,,_ ; -s "'te eats: '1lVe icom tired and :reconciled` tiie su-" 'lemenfa ' formatiori}b -the c fnane�al ta_ rn rp^ - pp _.._ '' c'ou" i ` records`:used; fnanctal `statements"°;or'fo ahe nat -al statoffiptsahemselvesj E d This=information is, intended"soleG" or tire.use fof:tt a Cit' Council;and Mang g emerd-tif.thio it o be tise' :b.'an one othe"_thanT':ttese"s "ecif ed" arfies: �- and'is'notintendedito4beyand should`n,t d...y . ..y.., .. . r R,.. �..� •.P• Veryrily yours; :LL.' - 1 .d s .x 'W V I • • k . "' - •{� , .;.<,... -- _...F.::::• ;` :._".r,..r ,..�:• - '3,=L+b^.i`Lis:,rw-_.'�'F.:.q-rF�•-:-�� _ :;F .;Yayl�: •,i7„(i'tY'n">r 2;%` :;''..`:o::}_; ' - '°.4za..=.t:''.� 3`D ANDEEt�O•Ui-MALQ.f.?(&rSC6 L_�Pt . -GEf2�IF1ED:P.U.BLIC=AGCO.UNTANTS�SIiVCE=t=948' � , - N 90�889`5�3fi`:t�,� p r?AF;7NF�RS _ w PA,,MST RE ORTAN`1NTERNA CQNTROLt;OVER•FCNANC'I]a L RED•a L iAND.ON,COMPLI`i?NCE�ANDrOTHERMATTERS;BASED•�ON�•1NAUD�T d '1{iek-�.Ft'1ii[FS:GF?A. T.,:f�: ..::1. - �><.. ,.,�.,. =_�_- ;�s.4. ,•s.'caa�:�•a't•.pax-,.,-;;�...s_,...�.:'•t7.,"- ..l,r - - - - qF�Fi ANCI�'L STATEMENTS�PERF�O '•ED�I ;AG'CO:_D..'N•°° ! 5-" W M�noci�CPA CG IA GOVERNIGJENl A'UDI:TING'STaNDARI}S o .Li,ena'-;Shantliag;CE'A:,MST;,CGC1li � f:%ypl,l.,Z�;rgl ii•r,:CPA:yPS'ir2cr�r�teratus) ,� '.PJzilli�•H.\Va11Cr.CLl1PvtnerEmeriitrsl t T p l;e-Hono�alle Cfji Council •� r r� AGRs.: s arF :Gift'of:Giand l"erace,.=Califiornia Naj'tc�'O fi:�lte1••cy CFA,.f-1tS'r� .. .. C ' itlCcril Pt'1�v lcl;r;=GpA: 1Gfi,. LL _ Ls' _ :,r. .:a - _ �:<•.:;� ..AS - 1Ne shave audited.:.thefflihl ciaG to#e" enfs,of itl e'i rnm ntal',activ�t�es< ,_ ftp,i';Mifai-;,.1i'ezity,;;,R�;1;1'f.'�� ....�--.:z,,,,an ;r•: � _��,.4.:.: .��-i..,.a-•x - r� r.�s,-trw�.c tr.�:.r�aR�• , ;the„ business"-type;. activities;: each major funds,and, ttie ,<a` r,e ate• a 99 9 Pit r Murny cPa °rerr�a ling s 0 -d;lh'fomnatton dFthe�Citypof Grand Terrace,_Califoraia�(Ci}�/1; .S,C,?'Jil�jfj L L.� :=CP MfiA ti,a 4 7 €„-Y ascof,. and:=to%fhe,7.`;earended:,lune°:34;;;=:2012 ;Which cetlectice. com nse C Cjt%q'IcS,Dc�Sinineti; •'f?tl :•.P� .<.��.: y .._°: Q •.ryN.<.s;, c-a,,;, s:.. ,... _ ;}tr�,: r��u;F�;'' r.;;• `C�t s'`basic fnanciaF state :ents:a`"d'`- ave°is`su d*'K ft, he eon h w. _ .:.tour- eapo::v '-MSA: ?k^ '"'s': 'ra = = .. dated :October -1 FZQ f3 . tVe:."'c_onducted<:our:audit.�n...accotdancef wtth'' __ - llT:_ \^ T:4 i 1t>_. �: ._ _f•':._-::'_!.`s .'sue'i". 1- �7'r rgtt;.:Ecnr�n:EPA,'.MS T of_4:. .; m : - •- ::auditor - standards: enerall:"acre ted•;�n. the. United=States :of::aAmeTica` _ PA :.� x,.g, » . .9 _ - ; Y p . x..a a , :.£_ -"' �- ' •' and`the�stan�Iards;�ap�licafleti�o-;financiah�aedits`�containedin�Govern�rr`ent' �.,, y�:•''rv^t:.:"w'�"5;,�„Si"°c-„y.,��,.7.,*C_.;_..<,;�;w•x,<<k`rs.. - �. ,�F+`v*�'::Ta_^. "..:z�y.K� :w+.. a.¢ Yst.,y Autlrfing Sfantlar�ls, issu'ed``iy Ltf�eµ' pmptrolleraGene�al .of the: Unlfetl -E eternal CanerolOuerFii�anc al<RepoYrf ig. , • ' 3 o. lri °tannin".ad:;'erformt oui-%audit':?we..considered Ahe=C`'";'s:antemal -� AbOttoF ove"r financial'`re ortin .as v p g _ :=a <basis}•fOr".designing our audfing :..x:-•. .` Ve dn __ Pt-�..�:t15.fg,-,,`�`c:>.7..:.:_:_:':e�.�.�:...:. :''`r' u.. L pro:ceder,:es'vfor<the'jpurpofse-4of sexpresstg out: opintois on. Elieiraricial d sfatements, but not nor the puipose of exp�ressing an +opinion on tn:e• — effectwenes:s' of ,the CH s ''inter,.nal, Control: {ovor fnan'cat repo U Accodin 1'% ne:do:riot ex f Bess an opinion;ontne.effectiveness:of:the: :;Cif sinternaldcpntrol`overfinanciaf%re orfin �. M EN18'E ft5 W :Arii;{i'iti`a;lnz'tiefiteo( ::, o-::::,,:;v... ra:.`.,;:.::i^,. .:..,-•,,.,;. .., _, .,.s-:::<.: ;i .. A<deficienc �n•. neural eontrol:ex�stsLwhen=lie-de itryn::or:o�graiion of-:� -c '('- i'FrJ�.t(:Piilli •%1CcoiiiltlritS. a, .+.�.::.x;^'ay._:,y; ,;,•_ G a_. •-;c..4� .._..�.. -7r._• -,h"'., control,d`o'.esrot al[ow.;mana ement=oraeri 'I'o.Fees'=:Wthe'normal course PdS,j'ik-S1CP.t 9 j0arlCl b 3 .�ti.`i a,i; {,t .�. rx.::r- z. s.::w ofr erfbrmtn' utFie�r:assi"`ned.functions w fo 'revent :Q d'M d,2.and :correef i cnn...irJi, p •r -Wig''- 9 P I - no-2 mi5statemets on;a trneL basis:_vA:.maferta/;.+weakness s ssdefc�en/'�/.or v'ry ri'tr ''!1'fi F:m.:;• ,<ryg•<7ty:C -.n: F'^;;w,ayry...:a;t•�i:^- - <-•, s, r,+.r:y:. . `Gn -r-.� . X ,.. w , ,- ..,-•rr.�.:ti --'. , .,.r. ,,.;;.,n.. Q a' "eoriabinatior of<deficiencres. in,r'i Cereal.%confrol:sucF` that: #here, [Cr -- - .-r=-r•- .;c,:;ye �..i.:i. :• - _ ,� r,t •�.•r•4r;<b.' h ,,. r,_.-r.' s i. �:3�:? y�:'_�:„eo 1 'vti�,:',-,`_.:.4. ;yr.w. _ •Y.-.F_. reasonable; °ossibilit`°tfata:mate_rial ilsstatemert_;:of'fihe ent�t:t�s'jfinanc�aC - -- - z:?*.•1' sfaterraunts rnill`not_;be "reuented-or-detectei,;andcorrected on=awtime+` C_L'e•iifcct'.PJ.�bYrRccciuric5rii's �w.z:;�r,.,�.� ..-....,., ,.._!..:-. •.,,, ..;t. :., .._...�.,a_ :,._..-... ..> .......... ...<. ,.rp �b�SIS i ]PackefPg107 'The;Honorable _y buf 'fib'dh 'kill .66-dit-rbl. �M?J' J6 bl� -it 6�liffflbdd io id" pfo 6 desh the-first' rg O�ffiadf h i§ 9 dt ip d d5d, dpa C j�,J.qq -�c -h ddfib n_ es haq, iWii*00� ffin' ficahf, -igh 9AN �n` 44 666.6-4-1 W not cies or T atA_fi5[;V.f . t.W&A d!ln :identify OPP reporting that we cons"ides to bye MUL"W69kh 4 As :art -66sbn e h- on gm gflidi�'. 'jai]fiilgdt_ t 166-,,,ProV' of Y- V fe6ts;are d-,f f Yn iO §.of; ifs",.6 t. laws,% �'a __� . � MP ith .ce, ain 19�." -WHance" C CL and gran granf agreements;e mf gpf, ogo 1, ith,`.w. ,hidh,:.co-Uk "b. �a oW@y Hof :financial statement amounts.'ditd"& -h higif4W( -�e' cct- ,bn-`,th' 'determination" "' ", g. 7 g-��l 69, 9�'-ft ,lp pm, '9 ��T . we-With-166 qg gge, Yi !"To ults e Tl .9.9r,,Mflg,y,,- Hon-,Th64et e_XpTo#8�JL" h te5fs;disclosedl;nQ:instances. L q L an ormaft Of,hi �y ing'agende imn, -gs h-", "b""' f ` d s rop,gh`i0ntitj694n -T§Jh6tJhtNhd V Yt 'be A se.---s ii;104 >Octoberl;2:013 E Ag _E g-Vp%ck'6fP `�®," `IRUGiR$;AIVD' ;R01; 1.tObYj&°SCOTTLlL1? �ERT�F.IED.P.UBUCACCOUNTgNTS SINCE►�'9�$` _ , CaennJ69le,'Dr;;_5 jl'e rap' '469J889d0874'T N [':itxlSKpff:neH, ,O �_`, ;October-1;�:20=13 'r1F41 fJj3F'S L:tendi:L;',Od(e;CP;;. . ST I j iK+rkiA,Fi SI lks'd 1 G01 To;tf�e:Gove�nin� ;Body"/.of 'hl;11rqNi'Q=VC?i�Siiii:'CF'A..;r'1SI�::CCChIA. he .:.r:��-;M`a' •. �ac,,: :.9.:�t�c;.�;J„::�w �" Cit o.Gr `nd Terrace California Lf ii i;$ti:tii�frig;GF a I IS f,:i GMiA, O J:�'.h�,..Zc?,c�tr,'r:.�'.A(F•'ai:iii'u'[fierii�is�. t / :d ]FBiHip:�l?I:3Nat�cr2C(,'_/�`#PSrciico.Emrriursy .. _ � Tta'nkvyou;xothecooperation: iveri'us,.duiin` ourrerycent;eri a'`errient>;wit_h_ -° the-,L-ity" of 'Grand . :.r�.:, F _y: 'Terrace: ln::conned ion;'with':our`;examl atlo i' ' ° - , m 4 n' i rofrfne c =isii; r e,ri,n �tY.cNA:r"e'. financlal.�state" eits for fF' ea�:efitledu e.3 ":'- u Y!! .�_:. U.�.o Y: 020T2� we,.,cgnsldered the c ;Fryer•r'C!l C A..hl♦,t cr '.r -J:e-.n.2_ P' inf O.,4�.aacountin -control' reuieweda�` 3" i� �. J ,.. .gh caca accountin ` �=olIq �a d" �Cfi:rV'�IiP^fit''~hL'"C �"�i,--_; " 'tR':3 F" -s,.y:;^ `.-';x: -i": - .g�+P� �F::Yc�- .�...� - y . -'i. - -:L•,.. � _ _ wee ,.,,::._ dcedures'and ce arn:ti`uslness' financ w<cn�, :. rt dal;;=an, adminis"trative~,ractices'`for: ur p, detecmining tije scope;,of oar=`.examination��_3Slnce,our;.e. ew °- $1t�«' `Y•a—�.v '�' v:Y-w^.i Y*;ti..- -!:;`-.'-r,`�+i,n.i'- ..en ..h?.t:.a:.�y,. ..a.'r.:.l„ :x},.wy::., ,..,,:..� 3, tPcicr"E;:Tluixar:Ci a- nf':fine: s"stein of>'�int fria-'`,acco i I =c; t ng,. Montrot�<w�as.:�ro.;ade=tfoenablew us eta ... j4i'"L` r' :Ntt3A' _. „- c • '.-=r cr ;:r .sue' �.<:ot „Y, eX'y'ress an= o`"' "nori-:on' lie fnancial stateme is y _ f, n .�t.:would not:ri"ecessaril' _Gh 1iIC%'I?r t...�� .;&. o .. ,. . -.- , r r:::r• _,.n ...c'.r,r..':r-,..�..,�r,o-r..ta•.7-aaz.�.�:�:n. :.i4'--._,-_ -`l,7 r.�:�q...�_.: , '�91tr�1'7!i?I;rJciter.'.CRA;�N�SA ,~ � �3 �ireir.J;.Bi'ariiecEA:MST grin qua '.=audit' :we .became° :aware:; df `sbme' . rea s, �g'- _ _ s :that, resent E�a�t�I D':Hc'ivr�o$ CBA e`' 'ortunities` for` titre °t"e` pp h nin" :.infernal`. _control amrov'iia'" 4o` ratin" E. redacin ex'arises:. ;..�.. :.: ..t: .._ tefficiency tine{: ,,r g p: 14�f Tfe:,followln o>n ma e:wFaur comments',.hldl irecommer dat ons e` ardin��µjtl ese rn'atfers.° As_iri'�`"nor � a .. h 4'y .,,. ,g 9•i r r< a. _, r p� ;r= 01 =yrnana`'ernent:a as' .1been roar IVe y g i :�n.:address�n areas :it�entifed _ •.^-'J n,,`SY,ra>' ��c. .. ?--,'.`n _v9:zxn-':' `;si:='•_ „ g=;,�.. tr�3.. ,'S`af'Y�r' •"�, �*;: .. 5:^-'t, 'rzi �,�. tluririaMYtte audi :a cl has"' beady'=simple eR , rp °" ►n Rol, :of="r:`eco mendetl; ; changes:. o 0. . �Po"•lice - �� 1Neriofed:`theCit�":'s'foYmal:em 'lo: ee anual::fins;iiot:been'.u'dated=since �_ Au'rt ust a Q: 20;0,0. KTFe ,`Cit ;also;__;has :not= deirelo -ed- .orriial. rand-risk e 9 ., �. ;Y gyp, f_ _ 1.. ,e assessment�or''.ariti�frau :,,, : „ .: ,, .- ;a, a., d Programsti'butrinstead:uses.an'sinforii al:r, rocess:;= wne :.ya3x`, `>, f.ri`arJzr'oa_ _? ,: _ Farffid1: - rifig i }fraud:; =rls_k' ,assetsm6fif aiid= anti'=fraud `y ro"urns'" ate essential parts of mte al;, on to t! _�_" f s u - w M r R its •k.- rn c V .ove�.financia t eportmg We;coi time:to. Ani(,;i'lQa++;rnsii(l �or :rj`* ei d,�t-lWitii`e=Crt erfo a d `'`r-rerilew vf�`tF exconterits-Of-ifs .rS#i".y - `ia� 'wT^,�?yy`.:s. �-xx^`.n. .;7'.;R• - ...'STz,n'v. M?:� c.�..�'2t: ,f,_,k''.'r..;��.:,. - .}-c" :x:... ,��,.:. "'..• G) cuRenf manual<anct:Imake":an: 'chars es aas.neces`sa .to:address ttie above < cr cc:AI CPA ; JGe;,C� coricems. v' w, )Gaiet;nliut:rii;nl�/iucYit: a ,Qtiardy C'L�itei 'p ilirpriir�:$ri5w�ty i7F '��citi�'itCl,f':Ci�(ic f\GCpiirll;lricS ' s rAsiu rr ° cu :E TRcisT� Packet,P aT1 9 �t'df y7WE-it, a":WMeijfibto- '!tft j iY A �I-, TQ ,y p Opp, i_ ..(e - AV P, 4t tFe"re:were no:;rev►ews=of the Pl ti mg "h - E o r %1 wiiP �d yj fimel""ti` sus: Also it is:: enerall. easier and.less.Mime'=consumin't 0 co `INeecommend'fhat'.all<barik'accounfs be n. PfRR :a;We also `,�I k-l- -'' e-con, jl"bq's Ad hot6d.4ewprdt`b lk _account r 0exi 006.' h&-`C -8 K. " NI - e k. d1h 'Wi6d m -h P"'I,wv T-,O�,Ooopn J66 'ra in' ilestones. E --- --------- checks h I h d-.c i Ate' 1-1-1 1- Ro MW Nk -, �k P 1c. ith-i��Nl it-th- h-t em pl%Ah"py, nfqqj q. h i n-, 1.5, "App qj,, y �,w- F qL Or -'it.1t e ofecenteXamiriatto As,an:in' O)o Q-P i' n, T ll�T --h-h 5 16 h6di-1169"Iftf." - "'f" 666fdW,`� d" N'Pm- staff j "- ,��d'*_i Nq 'Qf�AikS'r`- ji;' -Vr,,'WW' W'n ;responses -dTQ E "lh tte coming yeas. 9 h; 66 rn-j deport ip" ,4q,,kk gp9pk R J., Mot iRC3G:ERS'uAM1IUERSON f 14LQDY&S.00;77 %LtP TANTS ME i7 4e=:.DcsSuil .::tv N ;9,Q9v8$4= T 087A 909 8895361 F M :'r�rfiscpSyriek= 7 t0 TieHonorableCit _Council Citji of Gcaoc!Tee( :`California - w ,,ti renda'•�.'C)itic;.C:P4l;i"157 � Kir:D::J1:Fr:u�kx Gr' INDEPENDENTSACCOUNTANT'SREP:ORT>ON• ' 't:: ✓ •- ,:r5f�^..'" '.-.,�ys w`•r•.br-:_:.�,+....r,..,:-.,s:;, �+ Tlitii;�vy.t w;i5in;;cHA,;risa=:eeria AGREED=UP,Of11':PROC.EDURE9,APPLI -0-TO_ o .,� , .,. �.r,. c. ScbCt�W,,I1n7Yii��CF'A::CGI"Ilk ,. ' , x ..-• .n,� a-. '... ,.t ,.-.,�. ��:f:Yju�..::s_%•.-= G � ai;,lbit;g crA;tiisT:" ur APP,RQPIlgT1:ONSLIMIT`WOR.IS:�1'E,E7S`, d lay;t1.J<t li i,:CPgI'(F"u',uii r7E?Siei'ilus} 0 i?FiSllip'i<I:'V.1Wallcr:•CP:l�;(F�aruuirEnieticus� �(j Wei fia�e: - performed 'the :procedures- :;enumerated' befovir {to tie. h11,hjGERS TAPP "'L ,>_' '• ' accompanying .ApproP�iatiorts• 'Affi t ppsheet ,ofi` floe: >Cr#y of GrandAl. = Tercace:ft-Wifdrhja=fors „wf....<,. .., ;;_ r ;- -,.,.. .,,.r _,. ,; y nded'Jia a '2U: `,2. These:pr..ocedures,-the ear.e-tr n 30 1,r. wh ch—''--eareed to;ab.":t`e Cit of'Grand'Terrace ';Galifomra :and-ttie .Ita a.MiGlr''•(Ili�w'CP/I,iNIHA _ ...Y.:.,'y `:::� _ .,�':,_ -�-i%"<:w.:s•:,:•- ''�-�- •`'�_" •'L• n - ;Lea"iae,-iof�}Calrforrira��Cities'� as�:Vi•esented�yin, �tne'; "ublication. :en�titled� a =i{'a,�ii�g.`Iv:t'F.`;:•ir�2: stun. - - Y a �.,;:<- . .. Agreed uPo ,,,=Prgced_uses, �Appliecl<.,fo=<the ;ApprApn._a_ Mons nLam*fatroh , i, p r.1F` rsrt;�: ,�:,�t? u,»i4. ti _ ;:^. l?resc 1661. - ,"lAV dle Xlll�to{the rCal�fomra:Constlt�io ��wei e,performed � 7Xf / C _y #-A _ Ch1rl S. C. in2ttfi �' ..y c_ . c vi> r 5F 3� _::•. . ?wj„! a• s..wr. .. is -s.; a etolely:to',assis#th`e•:Cit ;arn..;meeting- 'c^alIn,�,RC M,P./s-1 5 i li' �',,•S,a,`.'+n:;,,a a:9."•`;e•,i%.-:trn:.�.y,,re...c�(,as:c�� : —y;r•;,.,.h.i� Y `:`'%'ti'i�h•3�=,_" :t:h oft :G�a 1�: ;re:e r.;G,Arc '-XI1 „ n,,,we rn�t,s�.:.;ro,r=:f:•`'>,t;�Ssr.,.e-r::'�k:cs`t�ih oe..ne-�g;t:H.'.�Th5;„'�.roi4.:sf.. o m:� o:h rii <se lefor,.th eApPropnaos,Liw =upon m,ac o� 'agreeledt1 oX ' atfestation�atan dartls;esfa,is.ed"t"V the American;lnsti#iite<of Certified =l '+1i': ,.�.i ..��r� '.._�,..-;�:�.:rl��:�'•r :-r •,.h..a!�`;v':- •..... Acco_Gntans:' The<sw tcency :j ,these-procedures is,aQlejy,'fte; responsibility Hof those.;;parties speafied rn� � r `p' tn#1y we „ r this re+ort $Corise'_ie make..,iio.re reseritation, regartliri 'the ':sufficiency of 7the procedures a •i } .p -r' =G=.�s`+-sat';�.. n �' ...1 a£'`F+�e,-;S`• fir+ described tbelow ..eitHe>?:for,'#lie-,pui=pgse ifor'-tit ieti#high aids:been' - , - a(;, Ort,,...`. �-,- ;:.�-.i ars•=�..�..c. ..c;..x•..,. 1.+'•,:,t - °�-ra.,ram• E. �requ"ested,:�or�for•�any�.'othe,r:purp_ose: • .-. - h_�' Tf'epro�cedures_perfo:rmed;antl=`our..fndings w:ee as':#ollouvs '1 1Ne.of fa ned=the.F,comVefei-.,w sheets` :and 'eomDaretl'aiae=lima Q /41ka :,o-""i. S•: . .: .3 P-;� V,:s'i??.` .z-:�. �aS r.� a:art2yiY �+':;� x.. ,.�_,�� and;a_nnualtadjust en fa ors'#nc tided i "" o m t.� ct r I n:;t}�ose;wocksheetsto:the L ° '+teri... ,.w. •s, 7;..yac�.;::f-<�: ,-..r_ Q 'limit`: :and•' S.. .:_R d annual; adjustment;'fa'ctors that were:r ado ted`, :Y.y=; • .•§.fit{�- ; ,•.. azt'•�_...,:.�::i r�-rs :raewns�do if�un:t flioart�r,o o�n f,ow thp etr,o'Cnalesi f Yin�;�Ctc lo�u1ud necdi l:in`:1,Nt he�e, -a�al.sf o=our°e:,cmorne;-ngy pta.io.;r;en�etl•d�,i�t=�ht 6t:--ipp i�tA. �U dh dodumen&lMEi Eis WI Fes. .' x 1 <r!._ tk. 3u-� °.1,� i E '"'�y i'"t_ ++-•,'rP. �"1.,;;. �t "t,._La - �+ AnSrr'iCri;hiSfitifte'01- ,those�#nat�wAereselec#scf:�bV=a=reeordetl:avote•.o#the�C',�y�.�(�Counal� _� y ^Y ': .: ..,. . _ - - � . .r:4 ..:t;., .s..rt::..,t -..YYI,-r.a-Jro ah`,:.�4.,1-: :v_S(a. 1Y.r .1'.:.4iyl.�,��.'.•'�Y.a '.i.{ :Gi�cifr,�l�,fiihlic'}1�conni5iirs- - - •' _ ._ Finds"^';Noexce 'ti_onsnie[enoted:,as;a:resultofour'';rocetlures� w - s2: For:�thecom`an":irt A ro `riations'Liinrt dorksiaeet�.we=:added: y d % firm c it a1'ucf t "' t=`;a i , { ;. .,u;,:x.. ,. ,. •. is :!?..f Y,.- 9v; .PP a? r' rt::: , >.;..,_.. .,. 7j,ril;1`aGr;rt'u aast,year: limit tq;:-total=adjustrnets'and`<<agreed :the' `resulting: ar►iountao this vyeagp t.' CGlr iirSii�itiit�r,of .C��rClfiedtiFilibtit,P.ZCC�Ii(1CL]t1I5 i"_...,?ti�.....try._•, - - _' Q F�ndrng_No°ezceptons�neie'noted==asa result`;:of.ou�,pro:cedures:. -STABILI?.;',� `AACG,UR:tsi:CY-'='TRGST:• - ' . ry�Packet��P 111 x , • i TIeHonorable`Ci Council• Ra e . :City of;Grad'Cercace.;,Califo:nia �.. 3: "fiNe'a reed tlie:fcurrent ';ear informat ori' 'resented'jn_jl a:�accom'an ici' .A""`ro`nations. �o Y� F ,..-P,, P-.,...Y.v..9. ..pA..,..p. ,!p Limit worksfeetto`tf%.otk%r'documents:refe�encedriin#1`abode. - '� •Fr%din .No-_eXce tions vine rioted'as-a:result of;our, r_ocedu�es. - A. We a reed• <l e. ;prior sear appropr-cations :ilimit :presenfed< :;iri :tf a accompanying: AppropnationsLimit worksheetto'the pno��year=appropnations li�riitadopfetlki the Cify Council:dunng.the prior:year: w a ,Findiri :_No.eNO tions<we e;no_ted.as a.result,o.~our rocedures We weie not ehga ed'-to°.:a `d:did`not`' erfo�m.arc.,exa-minatiot .ahe o6'eci v wjib.,woulj,% = rat - `tie::ex re``sion of,-an':o" neon on the�accom an`in".A ins 'imifwor, h Accordin`I" #,... ..}?.. , . ,.•t; -;p .Y__9',�.PP>..A:� we}a nat•ex re,, suchl an o inion: a'd we" "erformed'padd onat., rocetlure's otFier';matters m�"'tit'fia a come?fo-.our;afteritior�{that-,would;%v.- ',been:;re orted.to:you' :;No rocedures J ay..e :c been erformed"with res ect;to the.,determinatign of tf a ap';ropnationllirnit"for�the;pase ea��as defined_Ipythe'League�Puijlicatol .entitle'd:Artcle;:Xl/1.=Btof�fheCalrfornla_,Constitufion- _ ' - ;., - r .- -:xn .ram,.-. :,,,i:.•::::,:.»-_ ,-A . °N This=re ort<;is intended Fsolel tfenfor`rnation'anduse:of the:Cit`,Counci :and m'ana'(etinent=of a �.. aiz. >p -,-.-4�iC:t�.t;at•t;m.,,;tr,::tr e>` ;^. asF_,�„ - .,,� r ,f,�.,�t`�'�',.v"3: {,� -Cit. �of'G'r"andTerrace ,Califor�ia.:aand:'"ssndt` iitenefedfobe•:antl ishoultl;'nof,be� :used.a �/ ,� ;the fher'tnan':'tFese°Ys`ecified artier.<HovVver':this i e`'orf is:a.;riaatter of'a'ublic,:tecortl==and anyone'o.. -e , �itstlistribition�is<<notl jmifetl:� c 'October-T,=e201;3'. I .E . N C' ' Q. Q. aI W .K ; V i i i . j _=Packet'.P:g�,•11'2-�; 41 4 3 Dje,;,. ' CITY-:OF=GRANUTERRAC' '. APPROI?:RIATIONS';'t IT COMPUTATION -O r --.f PerCapita�Pecsonal�aricome:Chaange -2.�51oIo w :Fop:. _.. r $- C,ity Population;GovutEi 1Q5% CPI`Change,,Convertepd�to a=Rato '`�0251 ,� PoMo pulaton' hange.CQi�uerted:;aa`Ratio -10�05 f' Calculation ofkGrauvtt"=Factor-- 1.0359' 2'App-66' r ations`Limif ,`� '(9.83f5:2'16wXy`1-0251t:Xj1•0.�1;05) �$`;��.0;1.879�2:-- �`�j �, IL ''c 'a ,,,E 0 , l C Q.. O L Q. Q w r >x :=w 3� -ac � kef Pg: 1u13 ` HISTORLCAL-ANDGIJL'I iJRA4L..ACTLyITIES'COMIvITI'TE : .._..a , ... IV� ntfes'forNoveber:4;20:1�. - - - J' •I. _ .t, ,-S'-la�Jo•• 1 VJtnt . ersoaPauli_ieGrant �;>TYo e • `f'lte meettrt .. as ca 1 �a-.ord 08, - _ -ed .s 'a �'taran<-�1Vlartli =.artin senkil'y NS B d'•�.rances=:Carter�S'he11=`�Ro ,... , ._ . were:.Ann R.ett 1�IasakosGi -_ . ' `'vlointecin<aiti';Ct; :clerk Txacey'�1VT'artin�z.-rSisari Rollzs: .vas abs�rt,, - , tes of`:October 7=2013., ereUread aid<a 'ro 'SECIETAYSREPQRT Tle: nnu Y::Z`R=a ' :cooly`d•�-un er '. '' err-correctiotircwasxia e ination bv=F,,rances and second'ed`b" 'Raulrie..Aft,P e' .all iriotioii=caret d Zvi -- -�.' ':cku �_tlie'lariner'�from C; iall'a.`nd'}ut.it _ � . _ . FA1R Tha��hel�ly vlhp. _.P . -' . . _.. .r.-..t3'. _ _- _ ;- P�. .P. _ .-:.-: Cl rrieirib`ers rt Vpr. `V .� .„ ;;r T SURE``'S`REPORT: The btiid et' total-tialauce>of$77OQ.arida; e- cash -4 A_. - _. balance`:gf3 437 ' °1 n e- ,wttla seveneridor,a "lications:fQrvtle Gourtiy o UISTOItZCt `L RQRT Correctio w starteii PP , o edrt�taf we;°had'30 vendors not,eounttri the cookie :-contest r yar,_rather:t11ari 3:Q: Airi rep rt :g 1. j,. eria '�1 onored•'Th be h 'e'tlie:Or�'anza�ion`to ,.. �'he Foundation of�Grand�T.erac ,wil:�'li _ ,• eatured�:the lassdts•la :case_;iriithel'obliv: •. _ '" $;d . � . ,�, •n<<, ,gig,_ -, :.P�Y ..-, ,- -, ,. :- : h U11D.;B.USINESS ,Couniry;Fair ,epozf:• ; •0fro m c� 'des: 100 ;donation=fromShel1` Raffle:drawn '�>incoirie'�-5600.. whic%li=�i�nclu ,�: 4;. 3: ll S t �°a: Paulin 9 as Tti3 - Exf`°erises :Dor` .nu s`�• $'1. `ui•__.__. � - •fco'd: 'Total�t�ncomz>$245.90 aP�?... ,(I?..,Y 1,6$2cIvlasako) > :j'Y e end;"Curtin:Arithon;.Cortez- Tle' td"es of the food.coritest:were: :a..rieV«ppL.,; ? Y.,:,..,.,..., �_.� - . - Jiii�Iv�cNalZoe':aid:larie`�aiies:, � 'mow i.� ed':'t ie.Coun` <Eair banrier alie atoafie:G h n--y--noted.;that;:slie:refiirrt _ t0 ob4Pl ::tier"eXt- `ear:'o.iSat r, a >V�Ze<:area'cons�derin`,�chari'"in``<:the�tlateoftlie-��iiit:;;`�,F,. n , : - - ..., c Sohn=Gaedf;re resentafiue from3the office;of Che';1=Browi%<"ayecertf cafes of=appreciation andcc rY g. Tiarikyyoii carcl's=wilibe.seif to{jdges::aud volunteers: o -, .. N NEW TSIIEs; ' :Auua.Aiivers Bittiia Dinner: az3':'. X;' .. - = - o :1i.. at C IIa 4" =P.itil: ,L e=�'otluckd�irierill takej• l'ace:;gri,Dece �';,,.�::_. .... . .. ....,�', _ aleatl: a SVP,;is? ` ircl ib:` becenlier4.: 2O1 ;oil =ice tlle''next'Coniittee..meetiri :�11e11`';�,vills�alce�tle-':`�'sister•'wluchneecls'to'be-u".'befgre. I fiemefing was ail"ourzed at'73" .`P1VI: Thenertmeetngwll'rhe'IVlonda' becember2,2013_ . IvlartYia Monteon._Secret' s,P6cke_URg:p1.14. A R�: � , ..Q T MEETpNG'DATE: December^:1:020`13 CouncilItem TITLE: Approval of-Cheek'Registe'No. 12=10=2013 P,RE$ENTED,.BY: Cynthia f6dLine,.'Einance.Manager RECOMM'EN'DATION: Approve Aftchetl Check Register fob December 10, 201-3, as aubmitted, which inelades the Check,Register Account Index aril Vo:ucherList ngs for F scal Yeah 0.13-14. BACKGROUND: The Check RRegster for D.ecernber 1'U, 2013 is ,presented in. accordance with Government Code §37202 and'is hereby-submitted for fhe City C.ouncil's approval. The. .attached -index to the Check,Register 'is a :gui'ddlihe -account list-,only -and lis :not intend;ed'ao.:replace the comprehensive,chart of accounts used •aby the City,and �CRA _ . :-,ucczessor Agency; Expenditure accoun#,ynumber formats, are,.XX XXX [Funtl- Department Account] Expenditures y be bde afrom trust/agency accounts (Fun.d 23 XXX-)or_temporary clearing;accounts which do not Fave.,a budgetary impact: A :fotaF of $147857:03`in accounts :payable checks was;issued =during the, eriod ;for P... senirces, ,reimpursements; supplies :and contracts and are detailed in the' attached check register. ;` -. . . .,-, • . - -.$. ". Payee Description Amount M - - :.NoNev Vendors PpyMq!nts=tar outha:n..$10 00.0, `:Check payee Description Amount PublicN,Em Contribution�fo:r :a:°;: er Od end s' y 69'$$p ;z,:,.:. :p+ Pc_Y P,_- : J $14,33.0::33 yReti O S:`atem November=8 ,20x13: CA Pu61c`aEm' - . p' 's, „._ '698$1 =; ^ ;s Healfih Insurance for."December 12 a61.3:61: South:erri.0 = 698;82 ;& w ,,t Ene Usage foriOctober a Etlison,;Co.. 9Y er $a:, ;. ; a,P-ubl c Em= I�Co(itribut ons'for`a =enod:end p' NP YP, 9 a t: r., ,f .:, : : .... 1. 366:26 $ 4.; ember 22;_2013 4 ` Bu7tec�lNaste . -- , ;- -- - - . • _.r - _69889 a,,: ' iD.eiiri uent trash"d'e` os ts,:for fY, 12=-13 =$27.:702f 69 ::;Industries, G; .- wP..= Packet,Pa:�71.& I f Check No. Payee Description Amount City of;San ' 69892 Animal control services for November $10,935.75 -Bernardino` Stree0t maintenance at Vari ous city 69003 Roquet Paving locations and cleaning out channel next $1.5,254.00 to Edison towers 69910 Willdan Financial Finance department services for $18,060.00 Services November Pa to_II costs for`the.period ending November 22, 2013 y Per. Period Ending Period Amount 24 11%22/2013 Biweekly ! $51,84&69 FISCAL IMPACT: All ,disburaerrents are made in accordance with the Adopted Budget for,Fiscal.Year 201'3=1'4. I , ATTACHMENTS: • Cheek Register Account,.lndex r_ • Check-Register APPROVALS: f Finance Completed 12/04/2613 6:52 PM Cynthia fortune Completed 12/04/2043 6:53 PlM City Attorney Completed 12/05/2013 9:55 AM City Manager Completed 12/05/2013 10:43 AM City Council Pending j I � :Pack��Pg s11fi City of Grand Terrace Check Register Index FD No. Fund_Name Dept No. Department Name/Cost Center Acct No. General Account Numbers 09 CHILDCARE FUND 110 CITY COUNCIL 110 SALARIESIWAGES 10 GENERAL FUND 126 CITY MANAGER 139 EMPLOYEES'-BENEFIT PLAN 11 STREET FUND 125 CITY CLERK 140 RETIREMENT 12 STORM DRAIN FUND 140 FINANCE 142 HEALTH/LIFE INSURANCE 13 PARK-'FUND 160 CITY ATTORNEY 143 WORKERS'COMPENSATION 14 AB 3229 COPS FUND 172 BUILDING&SAFETY 138/141 MEDICARE%SUI 15 AIR QUALITY IMPROVEMENT FUND 175 PUBLIC WORKS ' '210 , �OFFICE'EXPENSE 16 GAS TAX FUND 180 COMMUNITY EVENTS 218-219 N,ON=CAPITAL FURNISMALLTOOLS 17 TRAFFIC SAFETY;FUND/TDA FUND 185 RENTAL INSPECTION PROGRAM 220 SPECIAL DEPARTMENTAL-EXP 19 FACILITIES'DEVELO_ PMENT FUND 187 ENFORCEMENT PROGRAM 230 ADVERTISING 20 MEASURE'I;FUND 190, GENERALGOVERNMENT(NON-DEPT) 235 COMMUNICATIONS 21 WASTE WATER DISPOSAL FUND 195 FACILITIES,MAINTENANCE 238-239 UTILITIES 22 COMMUNITY DEV.BLOCK GRANT 370 COMMUNITY`&-ECONOMIC DEV 240-242 RENTS&LEASES 26 LSCPG/LGHTG ASSESSMENT DIST. 380 MG,T INFORMATION SYSTEMS 245-246 MAINT;BLDG GRNDS EQUIPMNT 44 BIKE LANE CAPITAL FUND 41.0 LAW ENFORCEMENT 250-251 PROFESSIONAL SERVICES 46 STREET IMPROVEMENT'PROJECTS '430 RECREATION SERVICES 2557256 CONTRACTUAL SERVICES 47 BARTON RD.'BRIDGE PROJECT '440 CHILD CARE 260 INSURANCE&SURETY BONDS 48 CAPITAL'PROJECTS FUND 450 PARKS MAINTENANCE 265 MEMBERSHIPS&DUES 32 CRA-CAPITAL PROJECTS FUND 510 STREET,&SIGNAL LIGHTING 268 TRAINING 33 CRA-,DEBT SERVICE FUND 600 WEST SIDE,PARK 270 TRAVEL/CONFERENCES/MTGS 34 CRA-LOW&MOD'HOUSING 601 TRACT.1 71 PICO&ORIOLE 272 FUEL&VEHICLE MAINTENANCE 602 FORREST CITY'PHASE II 570 WASTEWATER TREATMENT 631 STORM DRAIN MAINTENANCE 33-300 DEBT•SERVICE .801 PLANNING COMMISSION 7XX FACILITIES IMPRV(NO CIP) 802 CRIME PREVENTION UNIT 700 COMPUTER-RELATED 804 HIS TORICAL&CULTURAUCOMM. 701 VEHICLES&EQUIPMENT 805 SENIOR CITIZENS PROGRAM 807 PARKS&REC COMMITTEE 808 EMERGENCY OPERATIONS PROG. +a.a :m_y -�; - _ Attachment:Check Register Account Index (Check Register No.12-10e2013) I l vchlist Voucher List Page: 1 12/04/2013 11:16:52AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69879 11/21/2013 002909 GRAND TERRACE WOMAN'S CLUB 08012013 FY 2012-13 Annual Yearbook Ad 10-190-220-000-000 45:00 10-190-251-000-000 12.60 r Total: 57.60 N 0 69880 11/25/2013 005702 PUBLIC EMPLOYEES'RETIREMENT PR End 11/8113 Contributions for PR End 1118/13 r 10-022=62-00 14,330.33 -. Total: 14,330:33 •C ;E Z 69881 11/25/2013 '010996 CA'PUB EMPLOYEES'RET.SYSTEM 1249 De.PER$,Health Insurance-Emp/Dep .; 10-022;6T=00 4,933.A N 10-190-265=000-000 `'.3.49 09-440-142-000-600 2,401.75 0: 10-120-142-000-006 633.(1O Y 10-125-142-000-000 317£ 10-140-142-000=000 317 10`-172-142-000-000 10-175-,142-0007000 578.02 N 10-370-142-000-000 10-380-142-000-000 453.35-D 10-450-142-660=660 181•.34 Y 16-625-142-000-000 206:27 avi 16-175-142-000-000 565.69 V 21-175-142=O6o-000 317.85 21-625-142=000=000 48:40 32-200-142-000-000 634.66 E Total: 12,613.61 v 69$82 11l25/2013 006720 SO.CA.EDISON COMPANY October 2013 October Energy Usage Q j Page: 1,_ i i 'Packet�Pg�11 S``r' hlist Voucher List Page: 2 12/04/2013 11:16:52AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69882 11/25/2013 006720 SO.CA.EDISON COMPANY (Continued) 26-600-238-000-000 40.80 262601-238-000-000 41:50 26-602-238-000-600 58.10 r 09440-238-000-000 855,45 N 172-238.006-000 `40.14 10- c 10-175-238-000-000 40.14 10-190-238-000;000 3;050.80 r m-450-238-000-000 1;130.44 _6 90-865-238,000,000 4,827 16=510-23&000-000 Total: 12;003:68 -N -:,;err•• 7S1 69883 11/25/2013 003210 HOME DEPOT CREDIT SERVICE 60353225002336E SUPPLIES FOR CITY HALL,PARKS&CHILD CA r 10-450-245-000-000 46:92 n 09-440-245-600-000 99:64 ,2_ \_, Total: 145:56;V 69884 11/25/2013 011138 SPARKLETTS 9637116 110113 October Bottled Water 10;190.238-000-000 96.77 m 107805-238-000-000 -21" 68;Q) 09-440-238-000-000 1'17.15'Y Total: 235.60,tom 69885 11/27/2013 001206 ARROWHEAD CREDIT UNION Sep/Oct 2013 VISA.CHARGES V 10-110-220,-000-000 10-125-265-000-000 145.60 69-440 220-000-000 107;15 23-200-14-00 266'63 m 09=440-228-000-000 175.07 Q 09-440-210-000-000 108.87 09-440-223-000-000 29.18 10-450-245-000-000 461.61 10-195=245-600;000 -m.55 10-140-265-000-000 150.00 Total: l,'05.27 Page: 2_ _ ,'Packet7Pg��.1'19', t ' :3 N vchlist Voucher List page: 12/04/2013 11:16:52AM CITY OF GRAND TERRACE i Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69886 11/27/2013 010664 SHELL FLEET MANAGEMENT 8000209687311 Oct/Nov Vehicle Fuel 10-175-272-000-000 480.14 10-185-272-006-000 36.17 Total: 516.31 r 0 69887 11/27/2013 005702 PUBLIC EMPLOYEES'RETIREMENT PR End 11/22/201 CONTRIBUTIONS FOR PR END 11/22/13 N 0 10-022-62-00 14,366.26 1' Total: 14,366.26 r 69888 11/27/2013 -001206 ARROWHEAD CREDIT UNION Oct/Nov 2013 VISA CHARGES Z 10=125-265-000-000 85:00 `m 09-4'40-228=000 000 22:00-N 09-4402272-000=00D 2400 09-440-220-000-000 72.16`ioe 23-200-14-00 ,' ' 'n`Y 10-190-220-000-000 29:1 10-460-245-000-000 401 Total: 322.84 m 69889 12/10/2013 011170 BURRTEC WASTE INDUSTRIES,INC. 10242013 FY 12-13 Delinquent Trash Deposits a 21-400-23 -17,745.67,d IX 10-200-09 -4,060.42— 10-200=14 447.43 d 10-200=02 53:76-x 10-190-215-000-000 161.28 V 23-302-90-00 50;670.65 7:e Total: 27,702.69-=� 69890 12/10/2013 011031 CINTAS CORPORATION#150 150177915 C.CARE RESTROOM SUPPLIES 09-440-228-000-000 196.19 a 150184972 C.CARE RESTROOM SUPPLIES 09-440-228-000-000 170.18 Total: 366.97 69891 12/10/2013 001810 CITY NEWSPAPER GROUP 18796 ADVERTISING PUBLICATION 10-125-230-000-000 97.13 Total: 97.13 Page: 3 „,Packet'Pg`12 Mist Voucher List Page: 4 12/04/2013 11:16:52AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69892 12/10/2013 006435 CITY OF SAN BERNARDINO 2014-10000020 NOVEMBER ANIMAL CONTROL SERVICES 10-187-2567000-000 10,135.75 Total: 10,135.75 co 69893 12/10/2013 011294 CLOUD,REBECCA 12032013 Park reservation refund due to weather o 10-450-01 :60.00 c Total: �50.00 N 69894 12/10/2013 001942 DATA TICKET INC. 49696 SEPT PARKING CITATION PROCESSING SERVICE 'd 107140-255-000-800 112'50<Z Total: ;112'50 ,d .. 69895 12/10/2013 002082 DISCOUNT.SCHOOL SUPPLY D18367380002 CLASSROOM SUPPLIES FOR ALL PROGRAMS ;U) 09-440-228-0007000 167.54-� D18367420002 CLASSROOM SUPPLIES FOR ALL PROGRAMS -- x 09-440-228-000-000 102.85 d i v D18367510002" CLASSROOM SUPPLIES FOR ALL PROGRAMS v 09-440'228-000-000 147.88 1)18405410001 CLASSROOM SUPPLIES FOR ALL PROGRAMS N 09-440-22&000-000 ',668.42, Total: 1;686.69.� Y 69896 12/10/2013 011061 EZ SUNNYDAY LANDSCAPE 4286 Emrqy clean up of canal by high school - 10-631-255-000-000 875.00.V 4475 November Monthly Maintenance _ 10-450-255-000-000 3;165.00 - Total 69897 12/10/2013 002301 FEDEX 2-399-89617 Document Delivery Services 46-900-320-000-000 29,40 Q Total: 29.40 69898 12/10/2013 003170 HdL COREN&CONE 0019919-IN 2ND QTR PROPERTY TAX CONTRACT SERVICES 32-370-255-000-000 625.00 Total: 625.00 69899 12/10/2013 003171 HINDERLITER de LLAMAS&ASSOC. 0021410-IN 2ND QTR SALES TAXIAUDIT SRVCS Page: _ 4 • 3iF�t%� vchlist Voucher List Page: 12/04/2013 11:16:52AM J CITY OF GRAND TERRACE Bank code bofa ' Voucher Date Vendor Invoice Description/Account Amount 69899 12/10/2013 003171 HINDERLITER de LLAMAS&ASSOC. (Continued) 10-140-250-000-000 975.00 10-140-250-000-000 ,4.85 _ Total: 979.85 M 0 69900 12/10/2013 010552 INTERNATIONAL CODE COUNCIL 2967942 Governmental Member Dues-Shields N 0 10-172-265,-000-000 125.00 T; Total: 125.60 d 69901 12/10/2013 010552 INTERNATIONAL CODE COUNCIL 11262013 Certification Renewal-R.Shields Z- 10-172-268-000-000 95.00 Total: '95.00 iN rn 69902 12/10/2013 005400 OFFICE DEPOT 666869568001 OFFICE SUPPLIES d tr 10-120-210-000-000 166.37 x 674092460001 OFFICE SUPPLIES 10-370-210,000-000 144. 679025563001 OFFICE SUPPLIES 10'625-210-000-000 77.03 N Total: 388.11 'T 69903 12/10/2013 006335 ROQUET PAVING INC. 1006-13 STREET MAINTENANCE-VARIOUS CITY LOCATION Y 16-900-257-000-000 1,287,00 y 1101-13 STREET MAINTENANCE-VARIOUS,CITY LOCATION s 16;900-257-000-000 11,310:00 C1 11080-13 Clean out channel next to Edison towers • gym 10-631-255-000-006 4657.00 E ` Total: 15,254.00 L m 69904 12/10/2013 006510 S.B.COUNTY INFORMATION 15672 OCTOBER PAGER ACCESS Q 10-175-240-000-000 9.00 Total: 9.00 69905 12/10/2013 011277 SANTA FE BUILDING MAINTENANCE 12550 OCTOBER JANITORIAL SERVICES 10-195-245-000-000 508.33 10-450-245-000-000 450.00 Total: 958.33 Page: 5 Packef.P`g.122'; i 1 { hlist Voucher List Page: 6 12/04/2013 11:16:52AM CITY OF GRAND TERRACE Bank code: bofa Voucher Date Vendor Invoice Description/Account Amount 69906 12/10/2013 011284 SIEMENS INDUSTRY,INC. 400113634 October Signal Maint and QuikNet 16-510-255-000-006 1,163.36 400114577 October Signal Respnse Call Outs 16-510-255-000-000 848.33 Total: 2,011.69 N 0 69907 12/10/2013 006681 SMART,&FINAL Store 318/Tran#:FOOD&KITCHEN SUPPLIES r 09-440-220-000-000 456.88 r Total: "66.88 ,C � Z 69908 12/10/2013 011275 SYSCO RIVERSIDE INC 3111907461 FOOD ITEMS FOR LUNCHES&SNACKS 09-440-220-000-000 568.35 a 3111907469 FOOD ITEMS`FO9 LUNCHES&SNACKS ad 09-440-220-000-000 220.5444 Total: 78 8.8 9 Y , m 19909 12/10/2013 011274 TRAMUTOLA,LLC 120951 ELECTION ADVISORY SERVICES-PHASE 2 V 10-190-250-000-000 8;261.64 Total: 8,261.64 S. 69910 •12/10/2013 011256 WILLDAN FINANCIAL SERVICES 010-22730 NOVEMBER FINANCE DEPARTMENT SERVICES - m 10-140-250-'000-000 18-060.00:Y t Total: 18;060.00 a 69911 12/10/2013 010864 WIRZ,MATT 11202013 Novembei Mileage Reimbursement-Wirz �? 21-175-271-000-000 96.05 _ Total: 96.05,-£ s 33 Vouchers for bank code: bofa Bank total: 14.7,647.03 33 Vouchers in this report Total vouchers: 147,857.03'a r Page: 6_-- �Packet�Pg 123;V� V`7A, kit R " A GUE N DA_ REPORT MEETING DATE: December 10. 20'.13 Council Item TITLE: Re'considea ,of SchAled&dget Reductions ratio PRESENTED _BY: Steve Elam, Finance Department RECOMMENDATION: Reconsiderthe:budget reductions scheduled-to take effect January 1,�2014, in`light of;the.new information�receIived regarding°Redevelop ment Propert y Tax 'Trust Fund residual revenues. BACKGROUND: On June 25. 2013, the City Council adopted the fiscal Year (FY): .2013-14 :Bud'get, which. ,ineluded a series of budget :reductions that would be implemented 'if the utility Us;, ers' tax measure did not :pass. The following table shows 'the approved budget ba'iancirig pian. •, "FY.;201$=14';. 'General duction Effective i, } J : Scheduled Budget Re Budgetary ,Fund %Date _''f ._Im ac_t_ B___alance: i B.e inn'i_n` .Fund'Balance _ 7/1/13 --I 300;,1.2.,' i 'iPro'ecfed'Bud'-eta `J'Defcif. `7/1/13, $674;:7.13 `; ,..!374 561 j;%A' roved Ex endifu�e'In'creases _ 7/1%13; 85;$00. 460;361.'; Red06e law.,enfomement contract;ti`-one cJe u "AdditionaG6oveitimere wired due-::to'afjoVe sfaffin` red'uction: : " ;: r7/1/a1'3 '> 212;86:1. AcJditi664l,Bud eta .";_Reductions ShouldTaz Measue;NofFass:_: etluce law enforcement°contract'b one additional iie ut 12/1/13 150 20Q;• _u62;661 iminate Senior>Centerfuntlin` ; , 1/1/,14 _ - 13,500 1 Reduce'EOC%GERT°C:onrrittee,fundin"-�,b `�5.0%0 `Close Rollins and"Pico?I?arks r - 1/.1/.1:4 'i ,(60,000 i 13;689; 3Re wred`;weed abatement.on_closed_ arks $1.3;000annualf . i` y 1/1%14. ?` r7;1.89`;i 4e em 26;000'' ;'Reduce,City Admi'hi4rati6n1 p:e sonnet-relate6sxpense;thro h- "some combination:of.outsourcing,wage%benefit reductions,work 1/1/14 266:;0001 299,189 schedule:�eduefons.,aril/or;workforce reductions.(lay_offs.), � - .:sut "ect�to�the.meet-andconfer Reduce;cultural' wstoticai�Cortimttee,fundin- b "50%0. ,°1_%1 14 A 300 ;299;489- ;Reduce.Gi Council and'Ove�si ht Board crieetin s.ifo month!';.:' - 1%1%14` �' '25a T299,739' Eliniinate'Flannin Corrimi'sson;,:Ci :Go'u'ncil to ass:uinerdutes - _- f Total?Bud et,Reductions - - .._. .. DI'SCUS.$ION: D.ue Ito ;the t-ecent information received, from staff-,and .;provided:to the City Councih.on December 3, '201.3, ,concerning unexpected residual revenues#rom 'the Redevelopment ,i '_t?ackgt Pg. 124 Property Tax Trust Fund (RPTTF), the City Council directed staff to submit for further consideration the scheduled budget reductions included in the above budget balancing plan. In considering whether or'not to implement the scheduled budget reductions, as Well as,, effective date, the City Council requested information regarding how much,--ofthe unexpected ,RPTTF revenue is considefetl as "one-time" versus"ongoing"'or related to the current fiscal year. The requested information is provided in the following table. RPTTF Distributions Distribution Prior. FY 2013-14 Comments One-Time Already reflected in LMIHF DDR $45,574 beginning fund balance .for FY.2013-14.' "Other Funds"DDR $329,604 Set-aside for Successor Agency loan,re a ment 329,604 ROPS 1 0 ROPS 2 0 ROPS 3 309,557 Potential of an additional•$389,000 ROP13-14A' 217,705 Estimated amounts— di,stribution has�not yet been received. One- ROPS 13-14B 272,000 400,000 time allocation related to -DOF disallowance of reserves for debt service. -Available if DOF-a , roves Joan,repa ment $581,557 $Q17,705 . If DOF.disa roves loan re• a ment: Refu-rn`ofset,aside,furids $329,604 - " Restoratibn'of-:fund;',balance to$300,152 616,445- •Available if DOF disaooroves.loan re'a ment 1 $294,716 1 '$617,705 . As shown in the above table, prior fiscal year and one-time revenues will be $581,557 if the Department of Finance (DOF) approves the proposed advance loan repayment plan. If.the loan repayment is not approved by the DOF, this amount will be reduced to $294,716 if-the General Fund balance is restored to the FY 2013-14ibeginning balance of $300,152. There is also the potential for additional revenues of $384;000 related to an adjustment 'of ROPS 3 by the County Auditor-Controller's Office. This revenue would `also be considered.as prior year/one-'time: An appropriate 'use of these prior year/one-time revenues would be to increase-reserves,• establish asset replacement funds, pay down other loan balances, cir for capital purchases. Use of one-time revenues for ongoing operations is not recommended. y In addition to the Prior Fiscal Year/One-Time revenues discussed above, ongoing RPTTF revenues of$617,705 are anticipated for the current fiscal year. ($217,70'5 has already been received for the Recognized Obligation Payment Schedule (ROPS) 13- i P`acketP.g:�1.25� r v� 14A, and $400,000 its anticipated for ROPS 13-44,13.) These FY 2013-14 `RPTTF revenues are :more than -adequate to offset the 'sched:uled budget `.reductions .of $513.700 ,in the a00toved 'bud�get balancing plan,°(as:shown o,n ,page 1" of this report) Without negatively impacting•General Fund balance. Given the unexpected RPTTF revenues that'are available to the City, the City Council may wish`to reconsider the budget.reduciions that,.,are.scheduled'to take.bffect January 2014. Exhibit A lists each scheduled budget reduction and'th' updated savings estimates based on the effective implementation date of each item When comparing ' the total estimated savings in this exhibit to the estimated savings in the adopted budget balancing plan, the following factors should be considered: • Law enforcement contract savings were originally based on an effective date of 12/1/13. Due to contract amendment provisions with the Sheriffs 'Department, the soonest a staffing reduction could be implemented is 111/14. • Due to expiration of the contract for Finance Departme_ nt services, the estimated contract savings of$20,000 for the second half-of FY 2013-14 will be dependent on the contract rate with the new service provider. • Savings related to :City-'"Administration �personnel.'rplated .expense have ;been T reduced,to .reflect=a- higher{leave .cash=out amount,, based orr announced and anticipa'ted'staff sepatations-versus work schedule'reductlonS. For each scheduled-budget reduction, updated savings estimates are provided based on effective dates of 1/_1/14, 2%11/,14 and 4/1/14 as further described below: • 1/1/14: Scheduled effective date • 2/1/14: Effective date if,"actions are deferred until after .the DOF decision is received On the Successor Agency"advancE.loan repayment. • 4/1/14: Effective, date if actions are deferred until after the Mid-Year Budget Review on 2/25/14. Actions would take-effect 4/1'/14. The attached exhibit also provides the City Manager's recommendation for each scheduled budget reduction and additional explanatory comments. City Council direction is requested on'each scheduled budget reduction and the effective date,.for .each. Where applicable, documents to implement specific actions have beer! included 'in this City Council agenda so the Council can :take immediate action if so desired. FISCAL IMPACT: The fiscal impact of the:scheduled budget reductions is shown in,Exhibit A to this staff report, based on the three implementation scenarios described above. ATTACHMENTS: ;Packet P��1.26 • Exhibit A Budget Balancing Plan for Reconsideration 2013.12.10 APPROVALS: Steve,Elam Completed 12/05/2013 12:46 PM Finance Completed 12/05/2013 1:17 PM City Attorney Completed 12/05/2013 3:17 PM City Manager Completed 12/05/2013 3:50 PM City Council Pending 'PacketiP.g�=127 Exhibit A-Updated FY 2013-14 Budget Balancing Plan Estimated Savings based on Effective Date City Manager Action Item 1/1/2014 2/1/2014 4/1/2014 Recommendation Comments Reduce law enforcement contract by one additional deputy. 128,700 107,300 64,400 Defer until 2/1/14 Wait until DOF makes decision on Successor Agency loan repayment;if decision is favorable,defer until Mid-Year Budget Review. Wait until DOF makes decision on Successor Agency loan repayment;if decision is Eliminate Senior Center funding. 13,500 11,250 6,750 Defer until 2/1/14 favorable,'defer until Mid-Year Budget Review. Reduce EOC/CERT Committee funding by 50%. 2,850 2,375 1,425 Defer until 2/1/14 Wait until DOF makes decision on Successor Agency loan repayment;if decision is favorable,defer until Mid-Year Budget Review. Wait until DOF makes decision on Successor Agency loan repayment;if decision is Close Rollins and Pico Parks. 60,000 50,000 30,000 Defer until 2/1/14 favorable,defer until Mid-Year Budget Review. Required weed abatement on closed parks($13,000 annually). (6,500) (5,417) (3,250) Legal review of staff reports and other City transactions will be more critical than ever Reduce contract services for City Attorney. 6,000 5,000 3,000 Defer until 2/1/14 due to staff separations and loss of historical knowledge. Contract expires 1/13/14 and will not be renewed.City will need to obtain new Reduce contract services for Finance Department. - - - contractual services.Savings,if any,will depend on new contract rate. Wait until DOF makes decision on Successor Agency loan repayment;if decision is favorable,defer until Mid-Year Budget Review.Actual savings will depend on Reduce City Administration personnel-related expense. 266,000 221,667 133,000 Defer until 2/1/14 employee decisions to remain with City at 18 hours/week or to separate,as well as new contract rates for any outsourced services. Leave cash-out allowance on employee separations. (100,000) (100,000) (100,000) Actual cost will depend on specific employee separations. Reduce Cultural&Historical Committee funding by 50%. 300 250 150 Defer until 2/1/14 Wait until DOF makes decision on Successor Agency loan repayment;if decision is favorable,defer until Mid-Year Budget Review. Reduce City Council and Oversight Board meetings to monthly. 250 208 125 Defer until 2/1/14 Wait until DOF makes decision on Successor Agency loan repayment;if decision isfavorable,defer until Mid-Year Budget Review. - �;�,N'� Eliminate Planning Commission;City Council to assume duties. 1,100 917 550 Defer until 2/1/14 Wait until DOF makes decision on Successor Agency loan repayment;if decision is .CYz favorable,defer until Mid-Year Budget Review. x SS Total Estimated Savings 372,200 293,550 136,150 t Co - Attachment:Exhibit A_Budget Balancing Plan for Reconsideration_2013.12.10 (ReconsideratioRof Scheduled Budget Reductions) 77j n, i'fHtn.: ysr r. 72 42 i' R D 4 R = N DA,, . E RrT_ - O' ..,. DTE: ., unc_i,l& Succ..essorAgicy Item A TITLE: Council Ad Hoc Committee:on-Ae,de,velopment.Dissolution PRESENTED BY: Betsy Adams,:City;Manager RECOMMENDATION: Considerestablishing a Council Ad,Hoc Committee to-meet With State,and.-County rePresentative`s on,'gd 46prnent dissolution�im`pacts"to the City,and,=if establish- ,appoint:of two Membe•rs'of=the City Council to.serve on..the Committee. KGROUNM - Tlie City Council ;held a Special Meeting Budget UVorkshop,on December 3, 2013 to receive information on Redevelopment Property 'Tax Trust Fund (RPTTI=) residual revenues and their impact .on the •City',s •General Fund budget buring' Council discussion, Councilmember Robles suggested the ,Cou.n'cil consider creating a Council ad-lhoc committee to meet ,with :.State:and.'County representatives on:redevelopment .,;a. _51 A.,3i.,i 9,.5L'�,rnk µ-�^'.�..y-�5..,,a� _ e:''Cl:_:i�-:: _ d''issolution im acts to theU` Si"b6Ahe:'Council-�is..not able;to take fo_ffhal,aetion.at-a 4,, ° � t tia, ep i `J ..S 4 LsS tlrf ;^: s..9fp :re`3csfy. { p' ,. workshop=�meeting tit was atgreed tthat this;ssuggesti`on ;would be 'brought:forward ,for Council consideration atahe City Council:Meefimg+on December 10,,20�M In ;recent"years°}'the Council has _used ad ;hoc corimm'ittees to add'�ess =various issues �. requiring m d`epih,.invo_Ivement.of the Council-(e:.g. review:of.f`scal,audit;firm pr:,oposals., �rev�ew of City antl Successor Agency ''legal'r,services, etc:). During th4 Budget Workshop on December 3, it was suggested; that the Council establish pan ad. hoc co`mm ftee .toamebVw_ith State'antl County,representatives:on the;impacts to';the Cifiy of various decisions antl :actions related ito the dissolution of-redevelopment agencies. S,ihb ltl a emir..e ICit.` its iriclutl'ed in:t'h`e;retie rel:o frnent ;ro eet areas such`:decisions can. have a,greater impact to Grand'Terrace than''tl ey may;have,o other cities.with smaller redevelopriient,proj'ect areas reiative to the size of fthe cities. FISCAL IMPACT: s . There is ono immediate fiscal impact'if the Council establishes.an.,-ad .hoc committob.to meet with State,and'County representatives'on..iredevelopment;dissolution. •D:ependmg on the scope established;by the Courcl;aforsuch:a cotmittee there may-be a:need:for k ,. staff support '(,eg. F,inance Department; 'City 'Manager,••etc.) land`°Successor Agency } 1.. x .,... . :'. { counsel su ort While 'staff ssu ort ex erases .:could be ,absKorbed 11h, ;the •'Ci s o. gratin bud et; Suc essq A gnctt counsel p�4 g g- c g ," ,services°arse contractually_required to tie billed Oft 'a rate of$185%ho}ur, ,4While this.expense can be chargetl' to'the Successor Agency, ,the ` Department of 4,96a. e has disallowed Successor _Agency -counsel _expenses as `an enforceable ;obligation,,_pj inning with .Recognized 'Obligation.Payment Sctiedule':(ROPS) 13=14B`(J;anuary 1 through June . f2013). These expenses'may be applied 'toward ;the :$125,00Q °atlminisfrative .allowance for." ROPS 13='14B, however, ' Packet�Pg♦:,129� ` I Successor Agency's administrative expenses which exceed this allowance legally have to be'paid by the City's General Fund. APPROVALS: Betsy Adams Completed 12/04/2013 2:18 PM • Finance Completed 12/04/20r13 3:13 PM City Attorney Completed 12/04/2013 3:44 PM City Manager Completed 12/04/2013 3:48 PM City Council Pending I i Packet'�P•g. 1:30' :A ' y,EN'M_, A REPO T MEETING{DATE: IDecernber 10.,'20, Council Item TITLE: Twenty=First Amendment to Law Enforcement Services_ Confiract PRESENTED BY: Betsy Adams, City. ,Mana`ger RECOMMENDATION: 1. Approve Twenty-First-,A'nendmentto Law Enforcement Se vices':Confract No: 94 Z97 with::Count,'of San JBerncirdino and authorize tt a Mayor to execute the agreepOrA` 2 Approve Gene:cal Fund budget appropriation of$8;000 for direct billed:deputy;hours. BACKGROUND: The ,adopted budget -for Fiscal Year. (.FY) 20.13-14 included two, reductions in Jaw enforcement services as part of the.:G.eneral 'Fund budget balancing ;plan The afirst reduction•-was tt ,e' -elimination' for .one ':patrol deputy on July Af 2013 which ,was plemented through the Twentieth:Amendment jto{Law<<rEnforcement seniices Contract,` The second`,ir`.educton; tq be::implernented. if a 'local revenue rr%asure faded, ;was'ifio U el rnihate a second!patrol:deputy.;positign from the=contract which;is the=purpose bf1his staff,report: DISCUSSION With hb,faillure .of Measure-,C., ::the Twenty-,First Amendrrierit to the LAW .E.nforcemeni Services Contract is aneeded'to,eliminate the second patrol deputy position 11UhiI'd tt e adopted' budget calls for.this service leyel,5reduction to;6e:mplemented_:'D`ecember 1., 2013, tthe Sheriff's Departnerit�recently;advis'ed the :City Alat the :reduction cannot be irnpl'eener ted'bhtil-hd-,o Decen be . After ..the -,Council ,apptgves :the 'Twenty=First Amendment to 'the LAW Enforcement Services Contract rtrs scheduled for approval:by:the County,of San'Be�nardno'Board:of Supervisors on`December 17 2013.: Vllhen this service level reduction takes effect on � • 5 December 28,..2013,;, the `City`will .have reduced tFe :contracted sworn law enforcement positions t)y43% over the;past,35 years; as suinpanze`d in itfe-table;below, Swo,rn'.Law:Enforcement Pos'fons i'n,Gand Terrace Position ; _ Hours':%1Neek FY 201011 , FY;20;1.1:-12 FY 201,1 12 a FY 2013,14 FY 2013=1, ; (07,01 1:3) ;r D_e ective x 40;; '40 2, 4PatroltiDe fut 2.4.:8 248: `248' 208. 1.68 Trafl"ic,Deputji IT 328;; 288 268'``` 228 i 188 _7 !I,- Packet; - .131. i The 248 hours/week for the patrol deputy;position.(6.87,,deputie8)was established when the-City entered,into Contract,-No.,94=797 for;law;enforcement services in FY 1994-95. Nineteen 1'9 .. . - - -, ,.E<�.. ,4 � .,. ,. ( ) ye:a'rs later; the City;is:contracting;fog 168 hours/week (4 7 deputie's)-due to the tenuous condition of th•e General'Fund-budget. If the Council defers approval of the Twenty-First:Amendment until December 17, 2013 the services level reduction will be implemented, after Board of Supervisors approval, on January'25, 2014. FISCAL IMPACT: A one month delay in implementing this service level reduction reduces General Fund budget saving "by $21,457. In addition, .the Sheriff's Department advised the City that $8,000 should :be budgeted for the balance of •FY 2013-14 for direct billed hours required when an.additional deputy is needed for backup on non emerge-ky or priority one calls (e:g. responses to traffic accidents involving:lane or,street closures; robberies or other incidents where the suspect is armed, etc.). Staff is requesting the approval of an_$8,00,0 budget appropriation from the General Fund fund balance for these activities. Account # 10410 260 (Contractual Services —'Pb Direct Billing) has been established for.this:$8;QOO,budget.ap,propria'tion. These .deputy ,nouns will be billed as straight time k- instead` of<overtime%bnd. are",needed since,the vast majo�ity:of each,day fhere'twill be onlysone'patrol deputy scheduled in Grand Terrace. ATTACHMENTS: k SheriffAgf66—ent 2013-2014 Amende'd_Dec2013 APPROVALS: Betsy Adams Completed 12/04/20i13 4:53 PM Finance 'Completed 12/04/20�13 6:40 PM City Attorney Completed 12/.05%20�13 9:53 AM City Manager Completed 12/05/20�13 10.48 AM City Council Pending C l i i f • _ T�Packef��P;'�`1�,32�,•' - f lyn-M§810 by endd'r News -V e 7 9 TA;2 1 c �t Oc I Al Y M r. o -e o �V' TL fl, '.Covg up De artment ounty:De'p-a rtr-b6-njtC- a ive p one'- U '0640" 0-6 U h ty-"6f S dh,."8 -,Stdv#;`H ig iy�9 9)38? t Cl) on ra 171 d-;--Jfj�eu keri ....... .. -E d6rTevenu T�90 P'Pi"', -D'--`C-bftfr6bVEh-&-D t- M, --, d c 6 m ft d., ContradtZtMt Date' ent,Affib- '0 $ un LU V.3 a I noun "T"-rd -D- '"- i "A' , Q�bj/RdV; GRC/PROJ/ 013" pla Ipp cc AAA OAA DT P -j ou �N-"�'!... 0 Fund"- 0 ME s Or -UGIRCMIR W INM t OUJI ep rcia-'d"" U '0 n-"Lz'a-t i o-h ROIJOBN E -.0 gpled-Na-m-d— ear, R". m V .Mll) iA i: 0 Urbe' h, I I Eh .2 A77� J tdbft 61 dlib",THI�S.,,'.-.CONTRrAC-T.-",,iq�.e mf dlifif i h"'--1 h-tiry �fe & uh TV qrew-, • 2-3-1,`O-5207 ;ITete hone T� 'E Yi L 4 IT IS HEREBY AGREED-AS:; ,O,LLO11alS N in d' e. I Mforde mr-,i6hifsl�q E on er!aw-,,er -e APT- bin `orate eit Z "con, i ions a a erpip,'b :reference: ddd-, 1.6-ti as `f�;d cppit rn 1�, , tpr--givamend -E `lRVX-- 70 7 7, ;Page a of A, 1133 k 0h V I"W . l 0", Obtard hfz o l, -.qn, 0 U) 0 Au two :E �E A— IL 7E CqCD T-Y -�Cit�.' -�66h 'T ac !E e Bd ?T rar Name— n CV) SIGNE IED Orb -T W ND CERTIF -"T--...HA, b r 1S 'b' -e' 'Wt "T 'A -tWDEUVERED'70- 7-"H.F--.', Title ' CIJOcu --*N -;�H -ttE T 3 ANUORTH -yp E A� ESOARD-;' 9' -D Clerk of tFie tm C) r.,s San Address:.••:.. 2-27-WMa ifb"',A-68 U) WT n -5 E b -too --ffs ........... M, S.Gfl, E 14,�11.Is_ F -G. Pat, ess 0 h' me, ff tiv --o 'T 4j. ' T 19 'Lieutenant..— , Set east a 'T .. . ........ l. _%rffl bb 181 I 1'06 S (e Q4-hbufs: 784"938A offic6spec_M.stl .0. '0`,l OVS&VicesvAtsist6ht IM6 t�ipb i 29M68 2 it Unmarked: _0 ;Patrol`- 'Igp8it bh -.ervices'- - E � `6.5 flUlOn' M _.43 :3—133, 70 -HT§-.fAdcess-,, ain W ji h A iffl#-d -ugt.�mp 6 AT nV s#-6tiv.p_�Sqpp6 l. minis "7 tion'Auto S, 6,8, ervi 103A, V Z �u nsurance., I P6f§bh y in 1W.1tiv,Mf" t 92 " 26'--3 C-4 IQ A -312T, 51 2ned CD C9 `C.4 ,�oe P �sonn _b zz oar,t'o'; 14P Nso(&�; f _y jo w6.Auel tii�'Whic d I b pitt is Mh ,pce', - Rij 'zontradfl-nveh tv Y q e, uAr'e.&by-iQ 'd nse., ;E :c --, j " cmu ,7th`b th" 5 Packet el ,SCHED,ULEA` w; Lavii`Enforcement`Services ;Contract :,,, _ - , 'C: tyof.;Grand Terrace' 2013=A 4 • C7 tr Additional:'C;osts' miled'.Qu§ t fiy Yt The City tivill:b6billed Oh a_,quarterly basis for the following;items: n t Actual=Overtime cost. Actual-corcst:ofadditonal atrol-resources re uired'b the.Co:un excludin mu`tu'al:aid,res o:nse: i • Actual.on=cafl cost,(6rh,call``pay, for-_safef rem 'I"o`ees`for FY20"13=14-:'s 185 er week . _ • LU Actual cast of�%licle fuel-and'mafntenance: 3 �P.rofessionaf se`rGices`from " ovate;vendors'and of:e�.se":'`.ices h.: nr. .._. pple., sonnet costs abbV06thO contract formula: 41 4. " Al -,LEVE:L=OF�SER1%ICE S;lJ11AMARY` LL � t SAFETYs GENEML`.-- :Lieutenant - ;'` - 126 - 'Office:Specialist_ M � ;q C t ;ool'SerV►ces._Asst' CDMoto�a P N ;pefec Y....o poral - 0'56 Dis atcherscoo Rot*Sire ff, - 5.76 >2:34 ij 7.43 c .( VEHICLES:, ;DONATED VEHLCLES: c� MakedPatrol.Units - 3 Ratlar`frail& - 1 Unma"fk6d:U.n'its"`Code 3 - 1 * Ni .? Citizen-�Pat�gl. - � � Donafed Vehicles=lns.Qnly - _� * ECD }(;, 6 *..(Included;for'insura'nce-costs:orilyj °' Is CO k ti E 7 4 ty�} t7 r P. i i?acket'Pg:•136 E p F C. AU!"E'N :A Er PORT MEETIxN'GtDATE: December '10; 2013 Council Item . TITLE; City Provided 'Health -,Insurance Benefit for -City Hall Erripl'oyees {- PRE$;ENTED'BY: Betsy-Adams, .OR Manager RECOMMENDATION: Adopt Resoluti0h to allow.Gity Hall.employees working.less than fialf time.(1-8(hours perwo-W ito continue,to,receive the ' City:provided ihealth:insurance'beneft througl .,the`California Public.'Employees:R`eti'..' Sysfem (CaIPERS). BACRGROUND: On.N'ove"rnb-e T8 :2008.,the City Council adopted,two resolutions�el'ectingtoetubiebt tothe Public EmploMedicl Ho Act, only with. respect to-tiiemtiers.of a '`specifc:employee o'r,'ganization" and to establish. th.e City's contribution :for,employees and retirees at''tlifferent amounts: The specific employee;organizationspare employees who work at the f,h'ild +Care`Center (Resolution 'No 2008 `1`$) and:;tfaose who(work at (tom.:_ yiq. �,�`, .At` v" , C Hall_ Resolution:2008=1`9; These 'r`.esolutionse_i"s"tabli's`hed''CaI,PE'RS.,as tf 'e:.fie:a_ Ith - .�� :S'i :�n...• ,T::; ' ..f...yaM1,..: ntr.' - Ff.ii E•.'• P.f,>4. - insurance co der'a':Cbntract #�33734)Jdr�'dIi"ible'em lo, ees and��future 1retirees =Tl e }Child 'Care Gen'ter em" to ees"are classified b `CaIPERS as bay "ainm rou'" rv001;001. -p. .y. Y' :g .,89=9 P_ :. ..: and City Hall employees (referr-e'dato:as':General Members:by CaIPaERS)b ebargammg group";002=002. Tfie Child Care Center currently ihas six errmployees and:one retiree Who receive tf_ie-health'insurance;berieft. ,City,Hall=currently;.fias eleven'employees and three.retirees who ,receive IN 6 benefit. DISC�iJSSI;ON - _ 1Nfles'the C 's et 'lo:"ees: aye- :,not re'`resented' b -labor unions• or efi`nlo'ees associatidh, .as jpVylic Terri lo:; ees -the.. .yn,orietFiel0';h" ve sconsi'd'e.rable,-� ,t6fections i` ranted b; ;sfafe�•and'6deral�law: Asa:result there were.several'�m.eetin''s with:C t.'`Hall !em lo`.ee.`s to discuss the im' actsf:if:Meas.ure :C was not,a robed:b' he votes. One of p5p, Y. the outcomes was that while'the 1.8.1f 9Io cafeteria,plan would-��be reduced 5WX6 (based f upph, �tl e work week ,going ,from .36,•hour8 ,�to 48 ,hi o rsj: at'e .City +pa'i'' empioyee only health'nsurance be'neft would not be subject to fh`is reduction,, Since Measure,'C f6Hbd,-, it.its;necessary to p►ocess"a .contract amendment with;CaIPERS, through:the attached resolution,ki maintain!trhisbenefit ifdr en ployees`wlio work less than "half>tirr e'':which:is consitlered`jto'be 20 fiou^is perweek by CaIP,ERS: In od'er tobe.,effective by January;1, 2014,.the following:two'sfeps=are requited,of the ti.ty: 1. '.City;.O hcil:'must atlo;pt'tf a;Resolution: .2; City'CI°erk-must submit a-certified copy of the original Resolution Ito•CaIPE-8 _- o:n;or before'Decemb:er i1.0;F2013. !If the Resolution :is not atlopfed on December 10, 2013 then o revised._resofution will r -Packet,Pg ,137" f need to be adopted at a subsequent Council Meeting with a later effective date.. Since the City .pays the health insurance benefit one month in advance, the Council could adopt a revised Resolution on December 17, 2013 without jeopardizing this agreed to benefit if the 18 hour work week is implement on January 1, 2014. FISCAL IMPACT: The Fiscal Year 2013-14 budget includes the City paid employee only health insurance benefit for employees who work at City Hall. There is rio fiscal impact in adopting a Resolution maintaining this benefit when City Hall employees begin their 18 hour work week in January 2014. ATTACHMENTS: • Resolution Less Than Half Time Health Ins Benefit APPROVALS: Betsy Adams Completed 12/04/2013 3:11 PM Finance Completed 12/04/2013 6:36 PM City Attorney Completed 12/04/2013 6:46 PM City Manager Completed 12/05/2013 10:444 AM City Council Pending �Packgt Pg. 138. w A RES.OLUTION;ELECTING TO'BE.:SU'BJECT TO SECT.I;ON.22807 ; OF THE PUBLIC'EMP_LOYEES''MED;i"CAL AND.HO,SPITAL CARE'ACT LF T;FAR LESS THAN HAIME'EMPLOYEES WHEREA$,.,(1) Government Code Section 22922(b) provides the,benefits of the Public Employees'.Medical 'and Hospital Care Act to.e- pioyees-oflocal agencies contracting with the Public Employees Retirement System; and Q WHEREAS, (2) ' The City of Grand Terrace, hereinafter referred to as Public,Agency, is a local agency contracting with .then Public Employees' Retirement System under-the Act;and WHEREAS, (3) Government Code Section 22807'allows a Public Agency to provide benefits to less than half time employees and annuitants, members of General Members Group, of local agencies contracting under the Act E upon proper application; and E Q WHEREAS, (4) The Public Agency desires to obtain for its employees and annuitants the benefit of Section 22807 and to accept the liabilities and obligations_ of a contracting sageftcylunder the Section; now,'thetefore,_be it RESOLVED,-.(a) That'the Public Agency elects, and it does hereby-elect, to be subject to .� the provisions of Section 22807 of the GOV'mment;Code. a v . Adopted at a regular meeting of the City Council of the City of Grand Terrace at Grand Terrace., California this 26th day of November 2013. :m C _ Signed: =d Walt Stanckiewitz, Mayor ' ,E Attest: ~ Tracey Martinez, City Clerk c N N d. tJ .O =0` • N d .E Ica 'Q HALF TIME PERS BY GROUP Revision N , city of-GrandTerrace.(General Members-Contract 33734,Group 002-002) q a AlID TfR A• - D �A : tNA&,,., , : YPT MEETING DATE: Decgm'ber 10,.•2013 Council Item .._. TITLE: An ,O_rdinonce bi -the 'City'Council Ito "Repeal a'nd ;R_'eplace Chapter 2 16 (P<lan:ning Commission) of Title 2 of tba Grand Terrace'MunicipalYCode PRESENTED BY: Sandra.,Molina, Deputy Community Development iDirector RECOMMENDATION: Introduce-,for frst'reading,_read�bytitle only and,waive further reading the attached Ortlinance to�Repeal and Replace Chapter 2:1-6,('Planning C6eninission) of Title 2-of the Grand Terrace M.un`icipal;God�e. V 'BACKGROUND: On June'•26,2043,Ahe City,'Couneil 8do,pted the•20.1,3`=2.01:4 Fiscal Year Budget_and also declared a fiscal emergency. The adopted budget included certain cost=saving provisions that would take+place on Januaryl, 2014,;if additional funding sources:wece One-of'th,e.cos't=saving'iternsis the.dissolut on..of the.!PI'anning Corm fission 6'oard with the City- atisocbmg the roles arid��esponsibility of�the City's Plannhg Commission: With th:e failure;of Measure`C;;`eert'ain actions are needed to transfer:the function:of fihe'�Planning Cgmmssion_to the'City'Council: .. 1613CU_$SION: Attached4ts an,ordinance:,,�epealin.g;Chapter 2:16 (PI'arming,.`Commission):;aritl'ireplacing it`with view language establishing the City�C-ouricil gas-thePlanning�G`ommission._ - Second reatling of this ordinance would be conducted,on December 10,2013, and it would'ti'ecome°effective on January`9,'2014. _N'o pehding,projects o�actions will be impacted. Additionally,.-�the,City'.s Zoning-.Cod.e; Chapter 1�8-63-Site;and Architectural�ReView, - p�i establishes the PkiAn ng;Gorrmmission to sit;as the City's site and architectural 9rev ew board. The site.and.archhkturai,6 6�16,66 :d assessthe's`iteaa`gut<and architectural . y design.for new proe'cts: No actori'is nestled;by the`Council with regard to this yfuncton, as;it will,bbe automatically assurn.e'd,bybthe.C.ity Council as'a;matter-of.law I te. zoning ,. _ _• . ., ,. . .. _ ,. _• r . F.:ISCAL IMPACT This::action.will have a:positive!iin-pact,on,the City's-budget. Pui_ �P.,g:,14 ATTACHMENTS: • 1. Ordinance Repealing and Replacing Chapter 2.16 APPROVALS: Sandra Molina Completed 11/19/2013 4:03 PM City Attorney Completed 1.1/19/2013 4:20 PM City Manager Completed 12/05/2013 4:01 PM City Council Pending vPacket;;Pg.141 ORDINANCE NO- AN 'ORDIN'ANCE OF THE °.CITY, COUNCIL 'OF, THE CITY OF GRAND a, .. TERRACE AMENDING TITLE ,2 OF.' THE GRAND TERRACE o �.�,. .2 MUNICIPAL CODE`=BY R'EREALING,"'AND"REPLACING CHAPTER.2 Z PLANNIN'G`COMMISSION IN ITS ENTIRETY 'E 0 C) THE tITY.COUNCIL OF THE CITY OF GRAND TERRACE; STATE OF CALIFORNIA DOES ORDAIN-AS FOLLOWS: a SECTION 1: The City Council hereby repeals Chapter 2.16 (Planning Commission)of Title 2 (Administration and Personnel) of the Grand Terrace Municipal Code and replaces in its entirety with a new Chapter 2.16 (Planning Commission) as C follows: s L) d Chapter 2.16 Planning Commission a d Sections: 2.16:0=10 - Planning agency- Establishment. . 2.1,6 020 - Chai1rman and vice-chairman. �- r_ Section 2.16.010 -Planning agency— Establishment. Pursuant to -Government Code Section 65100, the city council 'is --hereby , established and. designated :as the planning agency of the city, and hereby ;C assumes the responsibilities and duties of the-planning commission. M a� Section 2.16:020 -Ch'airman and vice-chairman. ; The mayor shall be 'the chairman and 'the mayor pro 'tem shall be the vice chairman. � SECTION 2. A fiscal .emergency has been declared in the City of Grand � Terrace, and due to these fiscal challenges the City Council adopted Resolution No. 13-26 adopting,the 2013-2014-fiscal year budget, an austerity budget, which included disbanding the Planning Commission, effective January 1, 2014, with-the City Council to assume such responsibilities. SECTION.3: The City Council hereby finds that this activity is not a °project:as o defined`'! y'Section,153,78(b)(2) of the California Environ'rriental Quality Act:(CEQA);`and therefore this activity is not subject to the provisions of-CEQA. E SECTION 4. The City Council declares that it would have adopted this,ordinance and each section, subsection,.sentence, clause, phrase, or portion-of it irrespective of a the fact that any one or more sections, subsections, `sentences, clauses, -phrases or Packet+,Ptg 1Y42 ' portions of it be declared invalid or unconstitutional. If for any reason any portion of this ordinance is declared invalid or unconstitutional, then all other provisions shall remain valid and enforceable. ' c :o SECTION 5, The City Clerk shall certify to the passage and adoption of this .N Ordinance and shall cause the same to be' published in the same manner required by E law. This ordinance shall take effect thirty days from the date of adoption. SECTION 6. First read at a regular meeting of the City Council held on the 26th day of November 2013, and finally adopted and ordered posted at a regular meeting of said City Council on the 10th day of December, 2013. a T CV L d .r+ XL ATTEST: a� City Clerk of the City of Grand Terrace Mayor of the City of Grand Terrace and and of the City Council thereof. of the City Council thereof. CL l., Tracey Martinez, City Clerk of the City of Grand Terrace,, do!hereby certify that the foregoing Ordinance was introduced and adopted at a regular meeting of the City Council of the City of Grand Terrace held on the 26th day of November 2013, by the following vote: w a AYES: W. NOES: S a ABSENT: ABSTAIN: am c c. City Clerk W d c Approved as to form: L O T w City Attorney 0 a Page 2 of 2 `Packe_`t Pg 143 i t: A ,_E.N.-DA 'E""RT MEETI!N'G`DATE: -December"9 Q, 2013 _ t Council!term TITLE: Resolution Amending-ithe Meeting times-for City Council, Planning "Corn mission, Emergency Operations 'Committee -and Historical and.Cultural Activities Committee PRESENTED BY: Tracey,Martinez,,CMC,, City Clerk RECOMMENDATION: Adopt a!Resolution Rescinding Resolution '2.01,3=1-8 and Establishing Times for,Regular'City.Council.Meetings, Commission Meetings and'Cornmittee.Me'etings BACKGROUND. The meeting":days and times for regular City Council, Planning.Commission and Council Appointed Committee meetings,are all set by Resolution Staff provides the'.support for the CtyC9un;cil;,.;P,lanning,.Commission;'Emergency`Qperations'Committee and Historical and`;Cultural Activities Committee meetings. On June 25; 20f3;the:Cit Council ado' ted the,�Fiscaf ' 2013 id.-'4`4,bud`'et. P*Vbf Y :.p, 9 k the adopted 'budget`was,a General iFund',Budget Bafa"acing Plan in-the event 4.`6t the proposed=local tax rnea'sure 'failed. Lnclutled' in the ,plan. were 'various expenditure > reductions that`would,'be J' pleMented at different times during';the fiscal y year if the tax measure' :tlid not pass. One of the reductions "approved was th'e reduction;of City Administration which Will, abe achieved "'througfi some c;6mbiriatibn of, outsourcing, wage/beneft -reductions, work-schedule reductions (reducing the rwork week.f�orn" th_e current 36'hours), and/or workforce reduction ,(lay=offs); subject to the meet and=-confer process and:compliance with.State laborlaws. On Novernber 5", :20�13� a .Special Election was he'Id' :n'-.the City- .of .Grand, Terrace. Measure C,, the;propbs-ed 5% U".tility User's.Tax was placed before the,pe"ople,for a vote audit failed. With'Measure C ndt,passi'ng the General'"Fund Budget Balancing;PI'an will now-take effect. As of January 1, 2014, a, reduced work week for employees will be implemented wh"ich will consist of City Hall` only 'being opened Tuesdays -and VVednesd'ays-With-staff only-working-an 18 ihou"r work week. DISC LASION: As-'indicated;; staff provides su.pporte?for "the 'City Council, Planni"rig ;Commissron' :and x <-;. Committee meetings. ,;UVrth the �impleme.station of,':tf s reduced work schedule jt ;is .necessa that 'tfie 'ce ular rneetm times and � { �" ' _. .. ry „g „ g r ays =for'the City' Council,:Planning" Commission, Eme'rgen"cy Ope„ration`s Corhmi,e and ;Historical :and "Cultural=Activities Cocrin ttee'tie chan,geci to accommodate 4h'b Lwork schedule reductions. The :following ':is a table of the current mednIg days -and 'times and':th.e prpoosed meeting days dd"tirries: PaeketPg �46 Meet!'ng,Group Current Day&Time Proposed'Day:&Time City Council Second and Fourth Tuesday Second Tuesday of each of each month at 6:00 P.M. month at 4:00 p.m. Planning Commission First and Third Thursday of Second Tuesday of each each month at 6:30 p.m. month at 4:00 p.m. Combined with the City Council Meeting Historical and Cultural First Monday of each month at First Tuesday of each month Activities Committee 6:00 P.M. at 4:00 p.m. Emergency Operations First Tuesday of each month First Tuesday of each month Committee at 6:00 p.m. at 4:00 p.m. Attached for your review and approval is the Resolution rescinding Resolution 2013-18 and establishing the proposed new regular City Council Meetings, Planning Commission Meetings and Committee Meetings. FISCAL IMPACT: There is no- fiscal impact with the adoption on the proposed Resolution. If the Resolution'is not adopted, meeting times and/,or days do not fall within the--reduced City -Hall wbrk_days, Tuesday.and Wednesday, and the City will:incur additional expense for employees to attend these meetings. With an 18 'hour work .week, all City Hall employees are non exempt employees under the Fair Labor Standards Act and must be compensated for every hour worked. This expense has not been factored into the FY 2013-14 budget but can certainly be included if the Council desires to maintain the current meeting time for City Council, .Planning Commission or Emergency Operations Committee. The Historical and Cultural Committee meeting day of Monday would need to be changed to eitherjuesday or Wednesday and would .need to, be scheduled 'to not conflict with City Council, -Plahriiho Commission or Oversight Board Meetings. If the Council elects to not assume Pianning Commission responsibilities, and maintain the Planning Commission, then these meetings would also need to be scheduled'for either Tuesday or Wednesday and would need to not conflict with City Council or Oversight Board Meetings. Staff recommends if changes are made to the proposed Resolution that a revised Resolution be brought forward for Council consideration along with a General Fund budget appropriation for the estimated staff expense if any meetings are scheduled outside of the 18 hour work week -hours of 7:30 am to 5:30 pm.;on Tuesdays and Wednesdays. ATTACHMENTS: • Resolution APPROVALS: Tracey Martinez Completed 12/05/2013 2:49 PM ~'Packet�;`P;g�'145 Finance Completed 12/05/2013 2:58 PM City Attorney Completed 12/05/2013 3:24 PM City Manager Completed 12/06/2018 3:32 PM City Council Pending �Packet:�Pg:1:46��' RESOLUTION NO. A RESOLUTION,, TH.E CITY COUNCIL--OF THE.CITY zQF- -0R,.AND TERRACEE, CALIFORNIA RESCINIDING RESOLUTI ;.4 TI ON��NO. 2013-18 'AND �ESTABLISHIN,G ;TIMES FOR ' REGULAR CITY COUNCIL :MEETINGS COMMISSION MEETINGS AND COIVIM.ITTEEi MEETINGS WHEREAS, the City Council of the City of Grand Terrace has determined the need to amend the regular times of the City Council, Planning Comrission,-Emergency Operations Committee and Historical and Cultural Activities Committee meetings; E .NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE does hereby resolve, declare determine, and order the following: SECTION 1. .Rescission — Resolution No. 2013-18 is hereby rescinded in its entirety, effective..December 31, 2013. E E 0 z , SECTION=2. ,Regular: :MeetinQ Times — The :times for regular City Council j. meetings,'Commssion'in'eefings and .Committee meetings are hereby established for the City of Grand Terrace, and said meetirig,tim'es sliall be'effective,January 1, 2014. ;2 c SECTION 3. Regular meetings of the City Council of the City.of Grand Terrace y shall be held on the second Tuesday of each month at:the hour of 4`0_0 p.m. unless the same shall be a legal holiday, in which event such regular meeting shall be held on the next succeeding-calend'ar day or a day set forth,by the City Council. ;Said meeting shall take 'place'in the Grand Terrace Civic Center Council Chambers or a location set forth o by the City Council. SECTION 4. Regular meetings of the Planning Commission of the City of Grand Terrace shall be'field on the second Tuesday of'each month 'at the hour,of 4:00 c p.m. combined with`the regular City Council meeting 'unless the same shall b`e a legal .3 0 holiday, ;in which event such- regular meeting shall be held-on the next succeeding `� calendar day or a.day set forth by the City Council. Said meeting shall take place in the Grand Terrace Civic Center Council Chambers or a location setj forth by the City d Council. , E SECTION 5.:,Regular meetings of the Emergency Operations Committee, of a the City tof:G,rarid Terrace shall be held .on the first Tuesday of each!month"at the hour of 4:00 p.m.,,.unless 'the.same .shall be a legal -holiday, in which„ event such.regular meeting shall 6e held on the.n'extsu,cceeding calendar.day or,a`d"ay set forth by�the`City Council`. Said meeting shall take .place in the E.O.C. Conference Room, Building 3, 22795 Barton Road, Grand Terrace or a location set for by the City Council. SECTION 7. Regular meetings of the Historical and CFultural Activities Committee of the 'City,of Grand Terrace shall be held on-the ,first Tuesday`.of each month- at the hour of 4:00'p.m. unless the same shall be a legal holiday, in which event • ' �Packet�Pg:147 such regular meeting shall be held on the.next succeeding calendar day or a day set forth by ante City 'Council. Said meeting shall take place zt the ;Grand Terrace Civic Center confere.n'ce room or a location set forth by the City Council. PASSED, APPROVED, AND.ADOPTED this 261n day, of November, 2013. r Mayor of the City of Grand Terrace . N a ATTEST: E i= c r a� City Clerk of the City of Grand Terrace .E I, Tracey R. Martinez, City Clerk of the City of Grand Terrace, do hereby certify E 0 that Resolution No. was introduced and adopted- at.a regular meeting-of to ... the.,City:council of the City`of Grar d"Terrace held on,the 26 day of November, 2013'by ` the following vote:, ' .o AYES: - i NOES: ci ABSENT: ;c ABSTAIN: ' City Clerk, City of Grand Terrace :o' w 0 • e :N d Approved as to form: a� r E s - co w City Attorney a Packet;�Pgy-14$