HomeMy WebLinkAboutCity of San Bernardino CAFR 2012
CITY OF SAN BERNARDINO
CALIFORNIA
Comprehensive Annual Financial Report
Year Ended June 30, 2012
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CITY OF SAN BERNARDINO
Comprehensive Annual Financial Report
Year Ended June 30, 2012
Table of Contents
INTRODUCTORY SECTION
Letter of Transmittal ................................................................................................................................ i
Organizational Structure ........................................................................................................................ v
List of City Officials ................................................................................................................................vi
FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................ 1
Management’s Discussion and Analysis (Required Supplementary Information) ................................. 5
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ................................................................................................................ 21
Statement of Activities ................................................................................................................... 22
Fund Financial Statements:
Governmental Funds:
Balance Sheet ............................................................................................................................ 24
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ... 29
Statement of Revenues, Expenditures and Changes in Fund Balances .................................... 30
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances
of Governmental Funds to the Statement of Activities ............................................................. 33
Proprietary Funds:
Statement of Net Assets ............................................................................................................. 34
Statement of Revenues, Expenses and Changes in Fund Net Assets ....................................... 38
Statement of Cash Flows ............................................................................................................ 40
Fiduciary Funds:
Statement of Fiduciary Net Assets .............................................................................................. 46
Statement of Changes in Fiduciary Net Assets .......................................................................... 47
Notes to Basic Financial Statements ................................................................................................ 48
Required Supplementary Information:
Defined Benefit Pension Plan Schedule of Funding Progress ........................................................ 132
Other Post-Employment Benefit Plans Schedule of Funding Progress .......................................... 133
Budgetary Comparison Schedules:
General Fund ............................................................................................................................... 134
Economic Development Agency Special Revenue Fund ............................................................ 138
Federal and State Grants Fund ................................................................................................... 139
Low and Moderate Income Housing Fund ................................................................................... 140
Notes to Required Supplementary Information ............................................................................... 141
CITY OF SAN BERNARDINO
Comprehensive Annual Financial Report
Year Ended June 30, 2012
Table of Contents
FINANCIAL SECTION (CONTINUED)
Supplementary Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet ........................................................................................................... 144
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 145
Nonmajor Special Revenue Funds: ................................................................................................ 146
Combining Balance Sheet ........................................................................................................... 148
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 152
Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Library Fund .............................................................................................................................. 156
Cemetery Fund ......................................................................................................................... 157
Cable TV Fund .......................................................................................................................... 158
Asset Seizure Fund .................................................................................................................. 159
Alternative Transportation Fund................................................................................................ 160
Animal Control Fund ................................................................................................................. 161
Traffic Congestion Fund............................................................................................................ 162
Special Gas Tax Fund .............................................................................................................. 163
Traffic Safety Fund.................................................................................................................... 164
Sewerline Maintenance Fund ................................................................................................... 165
Sales and Road Fund ............................................................................................................... 166
Baseball Stadium Fund ............................................................................................................. 167
Soccer Field Fund ..................................................................................................................... 168
Fire Station Fund ...................................................................................................................... 169
Major and Nonmajor Debt Service Funds: ...................................................................................... 171
Combining Balance Sheet ........................................................................................................... 172
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 174
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Assessment District #985 Fund ................................................................................................ 176
Assessment District #987 Fund ................................................................................................ 177
Assessment District #1015 Fund .............................................................................................. 178
Economic Development Agency Debt Service Fund ................................................................ 179
CITY OF SAN BERNARDINO
Comprehensive Annual Financial Report
Year Ended June 30, 2012
Table of Contents
FINANCIAL SECTION (CONTINUED)
Supplementary Schedules (continued):
Major and Nonmajor Capital Projects Funds: ................................................................................. 180
Combining Balance Sheet ........................................................................................................... 182
Combining Statement of Revenues, Expenditures and Changes in Fund Balances ................... 186
Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:
Verdemont Fund ....................................................................................................................... 190
Public Park Extension Fund ...................................................................................................... 191
CIEDB Street Construction Fund .............................................................................................. 192
Fire Equipment Acquisition Fund .............................................................................................. 193
Park Construction Fee Fund ..................................................................................................... 194
Cemetery Construction Fund .................................................................................................... 195
Sewerline Construction Fund .................................................................................................... 196
Storm Drain Construction Fund ................................................................................................ 197
Special Assessments Fund....................................................................................................... 198
Cultural Development Construction Fee Fund .......................................................................... 199
Assessment District #1015 Fund .............................................................................................. 200
Impact Fees Fund ..................................................................................................................... 201
Street Construction Fund .......................................................................................................... 202
Public Improvements Fund ....................................................................................................... 203
Prop 1b Local Street Fund ........................................................................................................ 204
Economic Development Agency Capital Projects Fund ............................................................ 205
Internal Service Funds: ................................................................................................................... 207
Combining Statement of Net Assets ............................................................................................ 208
Combining Statement of Revenues, Expenses and Changes in Fund Net Assets...................... 210
Combining Statement of Cash Flows .......................................................................................... 212
Agency Funds: ............................................................................................................................... 217
Combining Statement of Fiduciary Assets and Liabilities .......................................................... 218
Combining Statement of Changes in Fiduciary Assets and Liabilities ....................................... 220
CITY OF SAN BERNARDINO
Comprehensive Annual Financial Report
Year Ended June 30, 2012
Table of Contents
STATISTICAL SECTION
Description of Statistical Section Contents ........................................................................................ 223
Financial Trends:
Net Assets by Component – Last Ten Fiscal Years ........................................................................ 224
Changes in Net Assets – Last Ten Fiscal Years .............................................................................. 226
Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................... 230
Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................ 232
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years ............ 234
Principal Property Tax Payers – Current Fiscal Year and Ten Years Ago ....................................... 236
Property Tax Levies and Collections – Last Ten Fiscal Years ......................................................... 237
Debt Capacity:
Ratios of Outstanding Debt by Type – Last Seven Fiscal Years ..................................................... 238
Ratio of General Bonded Debt Outstanding – Last Seven Fiscal Years ......................................... 240
Direct and Overlapping Bonded Debt ............................................................................................. 241
Legal Debt Margin Information – Last Ten Fiscal Years ................................................................. 242
Pledged-Revenue Coverage – Last Seven Fiscal Years ................................................................ 244
Demographic and Economic Information:
Demographic and Economic Statistics – Last Ten Calendar Years ................................................ 245
Principal Employers – Last Six Years ............................................................................................. 246
Operating Information:
Full-time and Part-time City Employees by Function – Last Ten Fiscal Years ................................ 247
Operating Indicators by Function – Last Seven Fiscal Years ......................................................... 248
Capital Asset Statistics by Function/Program – Last Ten Fiscal Years ........................................... 250
Water Sold by Type of Customer – Last Ten Fiscal Years .............................................................. 252
Water Rates – Last Ten Fiscal Years .............................................................................................. 254
Principal Water Customers – Current Fiscal Year and Ten Years Ago ............................................ 255
i
300 North “D” Street · San Bernardino · CA 92418-0001
www.sbcity.org
June 16, 2014
To the Mayor, Members of the City Council and Citizens of the City of San Bernardino:
It is the policy of the City of San Bernardino to annually publish a complete set of financial statements
presented in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards by a firm of certified public accountants.
Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City
of San Bernardino (“the City”) for the fiscal year ended June 30, 2012.
This report consists of management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of all the
information presented in this report. To provide a reasonable basis for making these representations,
management of the City has established a comprehensive internal control framework that is designed
both to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the City’s financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of
internal controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement. As management, we assert that, to the
best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The City’s financial statements have been audited by Rogers, Anderson, Malody & Scott, LLP, a firm
of independent certified public accountants. The goal of the independent audit was to provide
reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2012
are free of material misstatement. The independent audit involved examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluating the
overall financial statement presentation. The independent auditor concluded, based upon that audit,
that there was a reasonable basis for rendering a qualified opinion that the City’s financial statements
for the fiscal year ended June 30, 2012, were fairly presented in conformity with GAAP, except as
noted with respect to adopting and implementing methodologies for reviewing (i) the valuation of
property held for resale, and (ii) the collectability of notes receivable. The independent auditor’s report
is presented as the first component of the financial section of this report.
The independent audit of the financial statements of the City also included a federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards
governing Single Audit engagements require the independent auditor to report not only on the fair
presentation of the financial statements, but also on the City’s internal controls and legal requirements
involving the administration of federal awards. These reports are available in the City’s separately
issued Single Audit Report.
Mayor, Members of the City Council and Citizens of the City of San Bernardino
June 16, 2014
ii
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of Management’s Discussion and Analysis
(MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction
with it. The City’s MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The City of San Bernardino, incorporated as a Charter City in 1854, is located in Southern California,
approximately 60 miles east of Los Angeles and 55 miles west of Palm Springs. The City has a land
area of approximately 59.3 square miles and population of 209,924 as of the 2010 census. The City is
the County Seat of San Bernardino County, the largest county in the nation. Along with adjacent
Riverside County, these two counties comprise what is called the “Inland Empire”, so-named because
it formerly was a vast agriculture domain (primarily citrus). This area is immediately east of the Los
Angeles/Orange County metropolitan area.
The City operates under a hybrid Mayor-Council-City Manager form of government. The Mayor is
elected by the voters at large, and is the City’s Chief Executive Officer. Each of the seven members of
the City Council is elected by voters in their respective wards. The Mayor and Councilmembers serve
four-year terms. Under the supervision of the Mayor, the City Manager is the Chief Administrative
Officer. The City Manager directs most City Departments, other than those governed by separate
boards (Water Dept., Civil Service, and Library) and the offices of elected officials. The City Manager’s
office, in addition to assisting the Mayor and Council in policy formation, focuses on special projects.
The City of San Bernardino also has an elected City Attorney, City Treasurer and City Clerk.
The City provides a full range of services, including police and fire protection; the construction and
maintenance of highways, streets and other infrastructure; and recreational activities and cultural
events. The City is financially accountable for the former redevelopment agency, the Successor
Agency to the former redevelopment agency, and the financing authority, all of which are reported
within the City’s financial statements. Additional information regarding all three of these legally
separate entities can be found in the notes to the financial statements.
The annual budget serves as the foundation for the City’s financial planning and control. The
appropriated budget is prepared by department (e.g., police), fund (e.g. general), and program (e.g.
patrol field services). All department heads may make transfers of non-personnel appropriations within
their department if less than $25,000. Elected officials may also make transfers of personnel
appropriations within their department with Mayor and Common Council approval. All other transfers
of appropriations, however, require the special approval of the City Council. Budget-to-actual
comparisons are provided in this report for each individual governmental fund for which an
appropriated annual budget has been adopted. For the general fund and major special revenue funds,
this comparison is presented as part of the required supplementary information in the accompanying
financial statements. For governmental funds that have appropriated annual budgets, other than the
general fund and major special revenue funds, this comparison is presented in the supplementary
section of the accompanying financial statements.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the City operates.
Local economy. The housing market and related industries had been major sources of growth in the
local economy for several years. Now that the downturn in the housing market has resulted in an
extended recession, the local economy has been affected more than most areas of the country. As an
Mayor, Members of the City Council and Citizens of the City of San Bernardino
June 16, 2014
iii
example, the Inland Empire has experienced rates of home foreclosures and levels of unemployment
that are some of the highest in the country. The recession has brought the City’s sales tax revenues to
a stagnant state. This is of particular concern to the City because economic experts believe the Inland
Empire will recover from the recession more slowly than other areas of the country and sales tax
revenues have been the largest revenues of the City. In addition, because the value of real estate in
the area has decreased with slight improvement in the economy, property tax revenues have stayed
flat to moderate, but are expected to slightly increase in the following year.
Cash management policies and practices. Cash temporarily idle during the year was invested by
the City Treasurer in authorized investments including obligations of the U.S. Treasury, corporate
bonds, investment contracts, and the State Treasurer’s investment pool. The maturities of the
investments range from current to 5 years, with average days to maturity of 562 at June 30, 2012. The
average yield on investments was 2.18 percent. Investment income includes changes in the fair value
of investments. Changes in fair value during the current year, however, do not necessarily represent
trends that will continue; nor is it always possible to realize such amounts, especially in the case of
temporary changes in the fair value of investments that the City intends to hold to maturity.
Risk management. The City of San Bernardino is self-insured for workers’ compensation and liability.
The unpaid claims and judgments payable as of June 30, 2012 for these activities is $17.8 million.
Third-party coverage is currently maintained from the CSAC Excess Insurance Authority and ACE
American Insurance Company for workers’ compensation claims in excess of $1 million, with limits of
$50 million. Third-party coverage is currently maintained from the Big Independent Cities Excess Pool
(BICEP) for liability coverage in excess of $1 million with limits of $25 million. Additional information on
the City’s risk management activity can be found in the notes to the financial statements.
Pension and other postemployment benefits. The City contributes to the California Public
Employees Retirement System, an agent multiple-employer public employee defined benefit pension
plan for its employees. Each year, an independent actuary engaged by the pension plan calculates
the amount of the annual contribution that the City must make to the pension plan to ensure that the
plan will be able to fully meet its obligations to retired employees on a timely basis. As of June 30,
2012, the City of San Bernardino has succeeded in funding (Miscellaneous, Safety, and EDA) 83.5%
of the present value of the projected benefits earned by employees.
The City also provides “Other Post-Employment Benefits” (OPEB), which include health and dental
care benefits for certain retirees and their dependents which are financed on a pay-as-you-go basis.
The actuarially determined unfunded annual required contribution for current benefits is included on
the government-wide financial statements in accordance with GAAP. Additional information regarding
the City’s pension arrangements and postemployment benefits can be found in the notes to the
financial statements.
Dissolution of Redevelopment Agency. Effective February 1, 2012, per state legislation, all
redevelopment agencies within California were dissolved. The City of San Bernardino Economic
Development Agency (“Economic Development Agency” or “EDA”), which administered
redevelopment activities for the City as well as other economic development activities (including HUD
programs and low and moderate income housing) ceased operations on that date. All redevelopment
activity was transferred to a Successor Agency for administration of the dissolution, and all other EDA
activities were assumed by the City. The impact of this process was a significant reduction in assets
and liabilities on the City’s books, and the loss of on-going property tax increment revenues.
Mayor, Members of the City Council and Citizens of the City of San Bernardino
June 16, 2014
iv
Bankruptcy. The City filed a voluntary petition on August 1, 2012 seeking protection under Chapter 9
of the Bankruptcy Code because it faced an immediate and dire liquidity crisis due to ongoing fiscal
challenges. On November 26, 2012, the City Council adopted a Pendency Plan, which balanced the
budget and provided time for the City to work on a longer-term plan of adjustment. This plan was
presented to the Bankruptcy Court on November 30, 2012 for Court approval. For more information
regarding the Chapter 9 filing, and subsequent City action, please see note 2 to the financial
statements.
Respectfully submitted,
CITY OF SAN BERNARDINO
Organizational Chart
As of June 30, 2012
v
* ELECTED OFFICIALS
** GOVERNED BY A BOARD
CITIZENS OF
SAN
BERNARDINO
COMMUNITY
DEVELOPMENT
PUBLIC
WORKS
POLICEFIREHUMAN
RESOURCES
**WATER
*MAYOR
CITY MANAGER
*CITY
CLERK
*CITY
TREASURER
INFORMATION
TECHNOLOGY
FINANCE
**LIBRARY
**CIVIL
SERVICE
**SBETA
*CITY
ATTORNEY
*CITY
COUNCIL
PARKS, REC &
COMM. SVCS
**SUCCESSOR
AGENCY
CITY OF SAN BERNARDINO
List of City Officials
As of June 30, 2012
vi
LEGISLATIVE OFFICIALS
Patrick J. Morris ............................................................................................................................ Mayor*
Virginia Marquez ........................................................................... Member of Common Council-Ward 1*
Robert Jenkins .............................................................................. Member of Common Council-Ward 2*
John Valdivia. ............................................................................... Member of Common Council-Ward 3*
Fred Shorett .................................................................................. Member of Common Council-Ward 4*
Chas A. Kelly ................................................................................ Member of Common Council-Ward 5*
Rikke Van Johnson ....................................................................... Member of Common Council-Ward 6*
Wendy J. McCammack ................................................................. Member of Common Council-Ward 7*
CHIEF ADMINISTRATIVE OFFICERS
Andrea Travis Miller ................................................................................................ Interim City Manager
DEPARTMENT HEADS
Georgeann “Gigi” Hanna ......................................................................................................... City Clerk*
James F. Penman............................................................................................................... City Attorney*
David Kennedy. ................................................................................................................ City Treasurer*
Jason Simpson. ......................................................................................................... Director of Finance
Margo Wheeler ................................................................................... Community Development Director
Rob Handy .........................................................................................................................Chief of Police
Paul Drasil. ................................................................................................................... Interim Fire Chief
Kevin Hawkins .......................................................................................... Parks and Recreation Director
Deborah Clark...................................................................................................... Interim Library Director
Ernest Dowdy ............................................................................. Executive Director (Federal Programs)
Tony Frossard........................................................................................................ Public Works Director
Linn Livingston .............................................................................................. Human Resources Director
* Elected Officials
735 E. Carnegie Dr. Suite 100
San Bernardino, CA 92408
909 889 0871 T
909 889 5361 F
ramscpa.net
PARTNERS
Brenda L. Odie, CPA, MST
Terry P. Shea, CPA
Kirk A. Franks, CPA
Matthew B. Wilson, CPA, MSA. CGMA
Scon W. Manno, CPA. CGMA
Leena Shanbhag, CPA, MST, CGMA
Jay H. Zercher, CPA (Partner Emeritus)
Phillip H. Waller, CPA (Partner Emeritus)
MANAGERS / STAFF
Bradferd A Welebir', CPA. MBA
Jenny Liu, CPA, MST
Papa Matar Thiaw, CPA, MBA
Maya S. Ivanova, CPA, MBA
Seong-Hyea Lee, CPA, MBA
Charles De Simoni, CPA
Yiann Fang, CPA
Daniel T. Turner, CPA, MSA
David D. Henwood, CPA
Nathan Statham, CPA, MBA
Bngina Banha, CPA
Gar'denya Dur'an, CPA
Juan Romer'o. CPA
Ivan Gonzales, CPA, MSA
MEMBERS
Amer'rcan Institute of
Certified Public Accountants
PCPS The AICPA Alliance
(or CPA Frrms
Governmental Audrt
QualILY CetHer
Californra Society of
Certified Public Accountants
ROGERS, AN D ERSON. MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
INDEPENDENT AUDITORS' REPORT
To the Mayor and City Council Members
City of San Bernardino, California
We have audited the accompanying financial statements of the
governmental activities, the business-type activities, each major fund , and
the aggregate remaining fund information of the City of San Bernardino,
California, as of and for the year ended June 30, 2012, which collectively
comprise the City's basic financial statements as listed in the table of
contents. These financial statements are the responsibility of City of San
Bernardino, California's management. Our responsibility is to express
opinions on these financial statements based on our audit. We did not audit
the financial statements of the Water and Sewer Enterprise Funds, which are
major funds and represent 96%, 99%, and 73%, respectively, of the assets,
net assets, and revenues of the business-type activities, Those financial
statements were audited by other auditors whose report thereon has been
furnished to us, and our opinion, insofar as it relates to the amounts included
for the business-type activities and proprietary fund financial statements, is
based on the report of the other auditors.
We conducted our audit in accordance with auditing standards generally
accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An aud it includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audit and the report of other auditors
provide a reasonable basis for our opinions.
Management has not adopted a methodology for reviewing the valuation of
property held for resale in the major governmental funds and the Successor
Agency to the City of San Bernardino Economic Development Agency
(Successor Agency) fiduciary fund in order to determine the net realizable
value of the property, and, accordingly, property held for resale is reported at
acquisition cost plus improvement costs. Accounting principles generally
accepted in the United States of America require that the carrying amount of
property held for resale, or development and sale, should not exceed net
realizable value. We were unable to obtain sufficient appropriate audit
evidence about the valuation of property held for resale by other auditing
procedures. The amount by which this departure would affect the assets,
fund balances, and expenditures of the major governmental funds, and the
assets, fiduciary net assets, and deductions of the Successor Agency is not
reasonably determinable.
-1-
STABILITY. ACCURACY, TRUST.
Independent Auditors’ Report (continued)
-2-
Management has not adopted and implemented a methodology for reviewing the collectability of
notes receivable in the major governmental funds and the Successor Agency fiduciary fund, and,
accordingly, has not considered the need to provide an allowance for uncollectible amounts.
Accounting principles generally accepted in the United States of America require that an adequate
allowance be provided for uncollectible receivables. We were unable to obtain sufficient appropriate
audit evidence about the valuation of notes receivable by other auditing procedures. The amount by
which this departure would affect the assets, fund balances, and expenditures of the major
governmental funds, and the assets, fiduciary net assets, and deductions of the Successor Agency is
not reasonably determinable.
In our opinion, except for the effects of such adjustments, if any, needed to report property held for
resale at net realizable value, and to report an adequate allowance for uncollectible notes receivable
as described in the preceding paragraphs, based on our audit and the report of the other auditor, the
financial statements referred to previously present fairly, in all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund, and the
aggregate remaining fund information of the City of San Bernardino, California, as of and for the year
ended June 30, 2012, and the respective changes in financial position and where applicable, cash
flows thereof for the year then ended in conformity with accounting principles generally accepted in
the United States of America.
The accompanying financial statements have been prepared assuming that the City of San
Bernardino, California, will continue as a going concern. As discussed in Note 2 to the financial
statements, on August 1, 2012, the City filed a case seeking bankruptcy protection and the
adjustment of its liabilities under Chapter 9 of the United Stated Bankruptcy Code. These conditions
raise substantial doubt about the City’s ability to continue as a going concern. Management’s plans
regarding those matters also are described in Note 2. The accompanying financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 that provides for
the dissolution of all redevelopment agencies in the State of California. Therefore, the City of San
Bernardino Economic Development Agency (the City’s redevelopment agency), a component unit of
the City of San Bernardino, was dissolved on February 1, 2012. As discussed in Note 26 to the
financial statements, the City Council adopted resolutions to serve as the Successor Agency to the
former redevelopment agency (for non-housing functions), and the Successor Housing Agency to the
former redevelopment agency (for housing functions). On February 1, 2012, housing assets and
liabilities were transferred to the City and are reported in the Low and Moderate Income Housing
Special Revenue Fund, and non-housing assets and liabilities were transferred to the Successor
Agency to the Economic Development Agency of the City of San Bernardino and are reported in the
fiduciary funds. Certain transactions undertaken by the City of San Bernardino Economic
Development Agency prior to the date of dissolution are subject to an asset transfer review by the
State of California and Due Diligence Reviews to be performed on behalf of the State. The State
issued its asset transfer review report on March 6, 2013, and its final determination on the Low and
Moderate Income Housing Fund Due Diligence Review on March 21, 2014. The Other Assets Due
Diligence Review has not been completed. The effects of this review cannot be determined at this
time, and the accompanying financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
Independent Auditors’ Report (continued)
-3-
As discussed in Note 23 to the accompanying financial statements, the City of San Bernardino,
California, has expended certain federal grant funds in a manner that may have violated certain of the
restrictive provisions of the related grants. The possible outcome of these matters, which is under
review of the appropriate federal officials, is uncertain at this time. Accordingly, no provision for any
liability resulting from the outcome of this uncertain matter has been made in the accompanying
financial statements for possible federal claims for refunds of those grant monies.
As discussed in Note 23 to the accompanying financial statements, the City of San Bernardino,
California, has expended certain gas tax revenues in a manner that may have violated State
guidelines relating to gas tax expenditures. The possible outcome of this matter is uncertain at this
time. Accordingly, no provision for any liability resulting from the outcome of this uncertain matter has
been made in the accompanying financial statements for the possible return of gas tax monies from
the General Fund to the Gas Tax Fund (a restricted fund).
As discussed in Note 23 to the accompanying financial statements, the City of San Bernardino,
California, has been named as a defendant in various claims and legal actions. The City’s position on
these matters is not a position of settled law and there is considerable legal uncertainty regarding
these matters. It is possible that legal determinations may be made at a later date by an appropriate
judicial authority that would resolve this issue favorably or unfavorably to the City. The City has
reported a contingent liability of $20.9 million in the accompanying financial statements related to
these matters. There are no reserves set aside for these contingencies.
In accordance with Government Auditing Standards, we have also issued our report dated June 16,
2014, on our consideration of the City of San Bernardino, California’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and
grant agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not to
provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards and should be
considered in assessing the results of our audit.
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, the defined benefit pension plans schedule of funding
progress, the other post-employment benefit plans schedule of funding progress, and the budgetary
comparison information, as listed in the table of contents, be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
Independent Auditors’ Report (continued)
-4-
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of San Bernardino, California’s financial statements as a whole. The
introductory section, combining and individual nonmajor fund financial statements, budgetary
comparison schedules, and statistical section, are presented for purposes of additional analysis and
are not a required part of the financial statements. The combining and individual nonmajor fund
financial statements and the budgetary comparison schedules are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to
prepare the financial statements. The information has been subjected to the auditing procedures
applied in the audit of the financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion, the information is fairly stated in all material respects in relation to the financial
statements as a whole. The introductory and statistical sections have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not
express an opinion or provide any assurance on them.
San Bernardino, California
June 16, 2014
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-5-
The following discussion and analysis of the financial performance of the City of San Bernardino (the
City) provides an overview of the City’s financial activities for the fiscal year ended June 30, 2012.
Please read it in conjunction with the transmittal letter and financial statements identified in the
accompanying table of contents.
Using the Accompanying Financial Statements
This annual report consists of a series of financial statements. The government-wide statements,
including the Statement of Net Assets and the Statement of Activities provide information about the
activities of the City as a whole and present a longer-term view of the City’s finances. Also 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 than the
government-wide statements by providing information about the City’s most significant funds. The
remaining statements provide financial information about activities for which the City acts solely as a
trustee or agent for the benefit of those outside of the government.
Financial Highlights
On August 1, 2012 the City of San Bernardino filed an emergency petition for Chapter 9 Bankruptcy
with the United States Bankruptcy Court for the Central District of California, Riverside Division. The
City Council declared a fiscal emergency shortly before filing the petition noting that the City would not
be able to pay its financial obligations in the next 60 days. Following the petition, a pre-pendency and
a pendency plan were filed that allowed the City to operate while it completes a Plan of Adjustment to
regain solvency. As of date of this report, the City is still in mediation and negotiating with creditors to
complete the Plan of Adjustment.
All changes in financial conditions, except those discussed in the preceding paragraph, relate to fiscal
year 2011-12. Please note that each of these changes will be discussed in detail in the appropriate
section of this analysis.
The assets of the City exceeded its liabilities at the close of the fiscal year by $640.7 million (net
assets). This amount includes net assets from (i) governmental activities of $380.4 million and (ii)
business-type activities of $260.3 million.
Overall the City’s total net assets increased by $16.4 million (which is comprised of an ordinary
decrease of $33.4 million and an extraordinary gain in net assets of $49.8 million due to the
dissolution of the Economic Development Agency).
Total City long-term liabilities decreased by $169.4 million, primarily due to the dissolution of the
Economic Development Agency.
As of the close of the fiscal year, the City’s governmental funds reported combined ending fund
balances of $90.0 million, a decrease of $120.4 million (which is comprised of an ordinary
decrease of $10.1 million and an extraordinary decrease in net assets of $110.3 million due to the
dissolution of the Economic Development Agency).
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-6-
Overview of the Financial Statements
The annual report consists of four parts – management’s discussion and analysis (this section), the
basic financial statements, required supplementary information, and a supplemental section that
presents combining statements for non-major governmental funds, internal service funds, and agency
funds. The basic financial statements include two kinds of statements that present different views of
the City:
The first two statements are government-wide financial statements that provide both long-term
and short-term information about the City’s overall financial status.
The 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.
The governmental funds statements tell how general government user services, like public safety,
were financed in the short-term as well as what remains for future spending.
Proprietary fund statements offer short- and long-term financial information about the activities the
government operates like businesses, such as the water and sewer utility systems.
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
statements and provide more detailed data. The basic financial statements are followed by a section
of required supplementary information that provided additional financial and budgetary information.
Figure A-1 summarizes the major features of the City’s financial statements, including the portion of
the City government they cover and the types of information they contain. The remainder of this
overview section of management’s discussion and analysis explains the structure and contents of
each of the statements.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-7-
Figure A-1
Major Features of the City’s Government-wide and Fund Financial Statements
Government-wide
Statements Governmental Funds Proprietary Funds
Scope Entire City Government
(except Fiduciary funds)
and the City’s component
units
The activities of the City
that are not proprietary or
fiduciary
Activities the City operates
similar to private
businesses
Required financial
statements
- Statement of net assets
- Statement of activities
- Balance sheet
- Statement of revenues,
expenditures and
changes in fund
balances
- Statement of net assets
- Statement of revenues,
expenses and changes
in net assets
- Statement of cash flows
Accounting basis and
measurement focus
Accrual accounting and
economic resources
focus
Modified accrual
accounting and current
financial resources focus
Accrual accounting and
economic resources focus
Types of asset/liability
information
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Only assets expected to
be used up and liabilities
that come due during the
year or soon thereafter;
no capital assets or long-
term debt included
All assets and liabilities,
both financial and capital,
and short-term and long-
term
Types of
inflow/outflow
information
All revenues and
expenses during year,
regardless of when cash
is received or paid
Revenues for which cash
is received during or
soon after the end of the
year; expenditures when
goods or services have
been received and
payment is due during
the year or soon
thereafter
All revenues and
expenses during the year,
regardless of when cash is
received or paid
Reporting the City as a Whole
The accompanying government-wide financial statements include two statements that present
financial data for the City of San Bernardino as a whole. One of the most important questions asked
about the City’s finances is “Is the City as a whole better off or worse off as a result of the year’s
activities?” The Statement of Net Assets and the Statement of Activities report information about the
City as a whole and about its activities in a way that helps answer this question. 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.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-8-
These two statements report the City’s net assets and changes in net assets. The City’s net assets,
which is the difference between assets and liabilities, is 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. Other non-financial factors,
however, such as changes in the City’s property tax base and the condition of the City’s roads, should
be considered to assess the overall health of the City.
In the Statement of Net Assets and the Statement of Activities, two types of activities are presented:
Governmental activities – Most of the City’s basic services are reported here. Sales taxes,
property taxes, other taxes, state subventions, and other revenues finance most of these activities.
Business-type activities – The City charges a fee to customers to help it cover all or most of the
costs of the services accounted for in these funds.
Reporting the City’s Most Significant Funds
The fund financial statements provide detailed information about the City’s most significant funds, not
the City as a whole. Some funds are required to be established by State law or by bond covenants.
However, City Council establishes many other funds to help it control and manage resources for
particular purposes or to show that it is meeting administrative responsibilities for using certain taxes,
grants, or other funding sources. The City’s two kinds of funds, governmental and proprietary, use
different 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 that
are available for spending. These funds are reported using an accounting method called modified
accrual accounting, which measures cash and all other current financial assets that can readily be
converted 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. Governmental fund
information helps to determine whether there were sufficient financial resources to fund current
period activities, and whether there are remaining resources that can be spent in the near future to
finance the City’s programs. The relationship or differences between governmental activities
(reported in the Statement of Net Assets and the Statement of Activities) and governmental fund,
are described in reconciliations following each of the fund financial statements, respectively.
Proprietary funds – When the City charges customers for the services it provides, whether to
outside customers or to other units of the City, these services are generally reported in proprietary
funds. Proprietary funds are reported in the same way that all activities are reported in the
Statement of Net Assets and the Statement of Activities. The City’s enterprise funds (a component
of proprietary funds) are the same as the business-type activities reported in the government-wide
statements, but provide more detail and additional information, such as cash flows. Internal
service funds (the other component of proprietary funds) are used to report activities that provide
supplies and services for the City’s other programs and activities.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-9-
Government-wide Financial Statements
A summary of the government-wide statement of net assets follows:
Govt Bus-typeGovt Bus-type
ActivitiesActivitiesTotalActivitiesActivitiesTotal
Current and other assets115.6$ 137.0$ 252.6$ 252.0$ 140.5$ 392.5$
Capital assets425.4 255.1 680.5 452.0 264.3 716.3
Total Assets541.0 392.1 933.1 704.0 404.8 1,108.8
Long-term liabilities142.0 59.5 202.3 250.3 69.8 320.1
Other liabilties18.5 72.2 89.9 75.3 96.9 172.2
Total Liabilites160.5 131.7 292.2 325.6 166.7 492.3
Net assets:
Invested in captial
assets, net of debt394.7 212.3 607.0 423.5 206.6 630.1
Restricted104.0 7.4 111.4 197.6 8.3 205.9
Unrestricted(118.2) 40.7 (77.5) (242.7) 23.2 (219.5)
Total net assets380.5$ 260.4$ 640.9$ 378.4$ 238.1$ 616.5$
20122011
(in millions)
Table 1
Net Assets
June 30, 2012 and 2011
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-10-
A summary of the government-wide statement of activities follows:
Govt Bus-typeGovt Bus-type
ActivitiesActivitiesTotalActivitiesActivitiesTotal
Program revenues:
Charges for services24.6$ 87.4$ 112.0$ 21.9$ 81.0$ 102.9$
Operating contributions
and grants26.3 1.8 28.1 33.1 1.9 35.0
Captial contributions
and grants11.3 3.1 14.4 15.7 4.4 20.1
General revenue:
Sales tax32.3 - 32.3 29.4 - 29.4
Property tax46.7 - 46.7 63.4 - 63.4
Other taxes34.2 - 34.2 31.1 - 31.1
Other general4.8 2.4 7.2 19.1 2.0 21.1
Total revenue180.2 94.7 274.9 213.7 89.3 303.0
Program expenses:
General government22.9 - 22.9 23.0 - 23.0
Public safety108.9 - 108.9 106.4 - 106.4
Streets30.1 - 30.1 31.8 - 31.8
Culture and recreation7.7 - 7.7 7.1 - 7.1
Community development9.6 - 9.6 16.3 - 16.3
Economic development24.1 - 24.1 31.2 - 31.2
Community service7.8 - 7.8 11.2 - 11.2
Integrated Waste- 26.9 26.9 - 24.2 24.2
Water- 40.0 40.0 - 36.3 36.3
Sewer- 23.3 23.3 - 24.1 24.1
Interest on long-term debt7.2 - 7.2 13.3 - 13.3
Total expenses218.3 90.2 308.5 240.3 84.6 324.9
Excess (deficiency)
before transfer and
extraordinary item:(38.1) 4.5 (33.6) (26.6) 4.7 (21.9)
Transfers(0.1) 0.1 - 3.4 (3.4) -
Extraordinary item:
Gain on dissolution
of Economic
Development Agency49.8 - 49.8 - - -
Increase (decrease) in
net assets11.6 4.6 16.2 (23.2) 1.3 (21.9)
Beginning net assets362.5 254.0 616.5 385.7 252.7 638.4
Prior period adjustment6.3 1.7 8.0 - - -
Ending net assets380.4$ 260.3$ 640.7$ 362.5$ 254.0$ 616.5$
Changes in Net Assets
Years Ended June 30, 2012 and 2011
(in millions)
20122011
Table 2
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-11-
The increase or decrease in net assets can provide an indication as to whether the overall financial
position of the City improved or deteriorated during the year. The net assets of the City’s
governmental activities increased by 3.2 percent (to $380.5 million from $368.7 million). The primary
contributor to the increase was the extraordinary gain of $49.8 million from the transfer of assets of
the EDA to the Successor Agency. Excluding this item, net assets declined by $38.1 million, resulting
from expenditures exceeding revenues. Revenue and expense fluctuations are described below for
the governmental and business-type activities of the City. Restricted net assets, established by debt
covenants, enabling legislation, or other legal requirements, was $120.0 million at the end of the year,
and the resources are limited in their future use for the related purpose restrictions. Unrestricted net
assets, the part of net assets that can be used to finance day-to-day operations without constraints,
was a $86.1 million deficit at the end of the year. The net assets of the City’s business-type activities
increased by 2.5 percent during the year (to $260.4 million from $255.7 million).
Governmental Activities
The cost of all governmental activities during the year was $218.3 million. As reported in the
Statement of Activities, the amount that the City’s taxpayers ultimately financed for these activities
through City taxes and other sources was only $167.8 million because some of the costs were paid by
those who directly benefited from the programs ($24.6 million) or by other governments and
organizations that subsidized certain programs with grants and contributions ($37.6 million). Overall,
the City’s governmental program revenues, including intergovernmental aid and fees for services
were $62.2 million. The City paid for the $152.5 million remaining “public benefit” portion of
governmental activities with $118.1 million in taxes (some of which could only be used for certain
programs) and with other revenues, such as interest and general entitlements, and by using $49.8
million of assets that resulted from the dissolution of the Economic Development Agency.
The reasons for significant changes in the revenues and expenses of the City’s governmental
activities presented above are as follows:
Revenues of ordinary governmental activities decreased by 15.3% ($180.2 million in 2012 from
$213.7 million in 2011). This decrease was primarily due to a $16.7 million decrease in property
taxes and a $12.7 million decrease in general revenues. The $32.5 million decrease in operating
revenues from ordinary governmental activities was offset by the $49.8 million one-time
(extraordinary) gain realized from the dissolution of the Economic Development Agency.
The cost of governmental functions/programs decreased by $22.0 million (9.2%), from $240.3
million in 2011 to $218.3 million in 2012. The largest decreases were due to decreased charges
for Community Development ($6.7 million), Economic Development ($7.1 million) and decreased
interest paid on long-term debt ($6.1 million).
The overall increase in net assets for governmental activities in 2012 was $11.6 million. This
increase includes a prior period adjustment of $6.3 million to beginning net assets.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-12-
Revenue by Source – Governmental Activities
Charges for Services
13.7%
Operating
contributions
and grants
14.6%
Captial
Contributions
and grants
6.3%
Sales tax
17.9%
Property tax
25.9%
Other taxes
17.1%
Other general
4.5%
$180.2 million
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-13-
Expenses by Function – Governmental Activities
General
government
11%
Public safety
51%
Streets
14%
Culture and
recreation
3%
Community
development
3%
Economic
development
11%
Community
service
4%
Interest on
long‐term debt
3%
$218.3 million
Business-Type Activities
Current year operating revenues of the City’s business-type activities decreased by 0.4 % for
Integrated Waste, increased 12.4% for the Water Utility, and increased 10.7% for the Sewer Utility.
Capital Contributions in the Water and Sewer Utilities were equal to 11.3% and 2.3% of operating
revenues, respectively. Net assets for the Water and Sewer Utilities increased by 4.4% and 1.6%,
respectively, including prior period adjustments. Integrated Waste net assets decreased by $2.1
million after non-operating revenues and expenses and transfers.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-14-
Revenue by Source – Business-type Activities
Charges for services
92.3%
Operating
contributions and
grants
1.9%
Captial contributions
and grants
3.3%
Other general
2.5%
$94.7 million
Expenses by Function – Business-type Activities
Integrated Waste
25.3%
Water
46.1%
Sewer
25.9%
Interest and Other
2.8%
$90.2 Million
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-15-
Major Funds
As previously noted, 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 chief operating fund of the City. At the end of
the current fiscal year, there was a negative ($12.2 million) unassigned fund balance in the General
Fund. Total fund balance decreased by $11.0 million to a negative ($12.2 million). The General Fund
had no reserves.
The reasons for significant changes in the revenues, expenditures, and other financing sources and
uses of the City’s General Fund from the prior year are as follows:
Total revenues decreased by $0.4 million, due primarily to a decrease in intergovernmental
revenue of $4.8 million, offset by an increase in tax revenue of $3.2 million.
Total expenditures increased by $3.5 million due primarily to an increase in general government
expenditures of $2.5 million.
Other financing sources and uses decreased by $5.5 million due to an decrease in asset sales of
$2.4 million and net transfers out to other funds of $3.1 million.
The dissolution of the Economic Development Agency (EDA) was completed in 2011-12 resulting in
the elimination of fund balances in the EDA Special Revenue, EDA Debt Service, and EDA Capital
Projects major funds from the Governmental Fund Balance Sheet at June 30, 2012. Revenues and
expenditures, and extraordinary gains and losses on EDA Special Revenue, EDA Debt Service, and
EDA Capital Projects major funds are as follows:
EDA Special Revenue Fund – Expenditures exceeded revenues by $4.8 million; total other
financing sources and uses contributed $8.9 million to operations; and the extraordinary item on
the dissolution of the Economic Development Agency resulted in an extraordinary loss of $79.2
million.
EDA Debt Service Fund – Expenditures exceeded revenues by $11.8 million; total other financing
sources and uses contributed $9.9 million to operations; and the extraordinary item on the
dissolution of the Economic Development Agency resulted in an extraordinary loss of $36.8
million.
EDA Capital Projects Fund – Expenditures exceeded revenues by $9.6 million; total other
financing sources and uses utilized $12.6 million; and the extraordinary item on the dissolution of
the Economic Development Agency resulted in an extraordinary loss of $67.8 million.
A number of federal grant funds of the City were reported with the EDA special revenue funds in
prior years, as the EDA was administering the grants. The City’s federal grants were transferred
from the EDA back to the City on July 1, 2011, and are included in the Federal and State Grants
fund in the accompanying financial statements. The addition of these grants to the Federal and
State Grants fund contributed to the fund becoming a major fund during the year. The City’s federal
grants are subject to a Single Audit under Office of Management and Budget Circular A-133, Audits
of States, Local Governments, and Non-Profit Organizations. The results of the Single Audit are
available in a separate report received by the City.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-16-
Major Funds (continued)
The Low and Moderate Income Housing fund was reported with the EDA special revenue funds in
prior year, as the EDA administered the redevelopment related housing activities. Upon dissolution
of the EDA on February 1, 2012, the City became the Housing Successor, which established the
Low and Moderate Income Housing fund as a separate major fund of the City.
Major Enterprise Funds – At year-end, unrestricted net assets of the Sewer Fund were $29.9 million,
$13.7 million for the Water Fund and a deficit of $2.8 million for the Integrated Waste Fund. The
change in net assets for the funds was an increase of $1.6 million for the Sewer Fund (including a
prior period adjustment decrease of $2.5 million), an increase of $6.9 million for the Water Fund
(including a prior period adjustment increase of $4.1 million), and a decrease of $2.1 million for the
Integrated Waste Fund, which includes an accrual for future environmental pollution remediation of
$5.0 million. Other factors concerning the finances of these funds were previously addressed in the
discussion of the City’s business-type activities.
General Fund Budget
The original $126.2 million budget appropriations of the General Fund was increased by $1.9 million
to the final amended budget appropriation amount of $128.1 million. The primary reason for the
increase in appropriations was to provide for contracted attorney charges of $1.4 million related to the
City’s bankruptcy.
Major deviations between the final total budget of the General Fund and its actual operating results
were as follows:
Total tax revenues were $1.1 million more than budgeted.
Licenses and permits revenues were $1.3 million more than budgeted.
General governmental expenditures were $1.1 less than budgeted.
Public safety expenditures were $1.2 million more than budgeted.
Debt principal payments were $1.1 more than budgeted and debt interest payments were $2.7
more than budgeted.
Transfers in from other funds were $1.1 million less than budgeted and transfers out to other funds
were $3.8 million more than budgeted.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-17-
Capital Assets
Govt Bus-typeGovt Bus-type
ActivitiesActivitiesTotalActivitiesActivitiesTotal
Land 113.8$ 15.7$ 129.5$ 125.5$ 15.5$ 141.0$
Infrastructure269.2 - 269.2 269.0 - 269.0
Systems, pumping, wells- 147.7 147.7 - 141.5 141.5
Building and
improvements17.2 75.7 92.9 24.9 68.2 93.1
Machinery and equipment9.5 6.5 16.0 13.1 17.9 31.0
Construction in progress10.5 9.6 20.1 22.6 12.5 35.1
Total 420.2$ 255.2$ 675.4$ 455.1$ 255.6$ 710.7$
Captial Assets
June 30, 2012 and 2011
(in millions)
20122011
(net of depreciation)
The major additions to capital assets during the year ended June 30, 2012 were as follows:
$7.0 million of infrastructure assets were completed and transferred from construction in process
for governmental activities.
$2.9 million in pumping and distribution systems were completed and transferred from
construction in process for business-type activities.
Additional information on the City’s capital assets can be found in the Capital Assets Note 5 in the
accompanying financial statements as listed in the table of contents.
CITY OF SAN BERNARDINO
Management’s Discussion and Analysis
June 30, 2012
-18-
Long-term Liabilities
At the end of the current fiscal year, the City had bonded debt outstanding of $81 million and
additional debt of $116.1 million. Bonded indebtedness included $46.1 million of pension obligation
bonds and $25.1 million of certificates of participation.
The City’s total long-term liabilities decreased by $174.2 million (46.4%), including a decrease in long-
term debt of $120.2 million (56.0%), during the fiscal year due primarily to the dissolution of the
Economic Development Agency and the transfer of related tax allocation bonds of $130.0 million to
the Successor Agency (which, as a separate entity, is reported as a fiduciary fund, and is not included
as part of the government-wide statements).
Govt Bus-typeGovt Bus-type
ActivitiesActivitiesTotalActivitiesActivitiesTotal
Tax allocation bonds-$ -$ -$ 134.7$ -$ 134.7$
Revenue bonds9.8 - 9.8 11.1 - 11.1
Infrastructure loans8.0 - 8.0 9.3 - 9.3
Notes payable5.7 31.5 37.2 33.2 24.4 57.6
Certificates of participation4.5 14.8 19.3 10.9 17.2 28.1
Pension obligation bonds46.1 - 46.1 47.1 - 47.1
Other67.9 13.2 81.1 65.2 22.6 87.8
Total 142.0$ 59.5$ 201.5$ 311.5$ 64.2$ 375.7$
Outstanding Debt and Long-term Liabilities
June 30, 2012 and 2011
(in millions)
20122011
State statutes limit the amount of general obligation debt a city may issue to 15 percent of its total
assessed valuation. The current debt limitation for the City is $179.5 million, which is significantly in
excess of the City’s outstanding general obligation debt of $55.4 million.
Additional information on the City’s long-term debt can be found in the long-term liabilities note 8 in
the accompanying financial statements as listed in the table of contents.
Requests for Information
This financial report is designed to provide a general overview of the City’s finances and to show the
City’s accountability for the financial resources it receives for all those with an interest in the City’s
finances. Questions concerning any of the information provided in this report or requests for additional
financial information should be addressed to the Office of the Director of Administrative Services, City
of San Bernardino, 300 N. “D” St., San Bernardino, California 92418.
-19-
BASIC FINANCIAL STATEMENTS
-20-
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CITY OF SAN BERNARDINO
Statement of Net Assets
June 30, 2012 (with comparative totals as of June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-21-
GovernmentalBusiness-type
ActivitiesActivities20122011
ASSETS
Cash and investments12,924,831$ 75,711,312$ 88,636,143$ 128,179,014$
Cash and investments with
fiscal agents36,110 750 36,860 40,962,247
Receivables, net:
Accounts2,642,226 9,804,756 12,446,982 14,375,430
Interest4,378 175,903 180,281 198,481
Notes47,574,234 - 47,574,234 32,162,796
Other- - - 20,509,042
Special assessments297,125 - 297,125 -
Deposits271,073 - 271,073 300,000
Inventory235,514 1,615,750 1,851,264 2,081,589
Prepaids5,100 37,620,116 37,625,216 36,895,297
Internal balances(277,600) 277,600 - -
Due from other governments16,958,908 1,374,260 18,333,168 20,656,531
Property held for resale34,721,733 - 34,721,733 100,438,846
Deferred charges- 287,261 287,261 1,679,056
Other assets214,671 10,000,000 10,214,671 291,492
Capital assets:
Not being depreciated124,299,790 25,077,286 149,377,076 176,041,354
Being depreciated, net295,920,490 230,126,145 526,046,635 536,250,932
Intangible assets, net5,103,931 - 5,103,931 5,698,564
Total assets540,932,514 392,071,139 933,003,653 1,116,720,671
LIABILITIES
Accounts payable and
accrued expenses8,143,004 10,489,178 18,632,182 17,199,129
Accrued interest943,475 567,462 1,510,937 4,281,573
Retentions payable134,960 - 134,960 107,738
Deposits payable1,084,829 3,692,469 4,777,298 3,496,806
Unearned revenue1,037,985 57,471,166 58,509,151 75,254,884
Due to other governments4,174,411 - 4,174,411 21,737
Due to agency funds659,486 - 659,486 -
Due to Successor Agency2,232,925 - 2,232,925 -
Short-term note payable- - - 16,250,000
Noncurrent liabilities:
Due within one year19,548,118 10,761,808 30,309,926 36,924,784
Due in more than one year122,515,140 48,716,278 171,231,418 338,799,861
Total liabilities160,474,333 131,698,361 292,172,694 492,336,512
NET ASSETS
Invested in capital assets,
net of related debt394,655,658 212,255,999 606,911,657 631,742,670
Restricted for:
Public safety1,552,213 - 1,552,213 774,855
Streets and capital projects24,246,718 - 24,246,718 25,406,968
Culture and recreation2,357,706 - 2,357,706 81,331
Community development76,110,877 - 76,110,877 -
Economic development7,472,526 - 7,472,526 139,555,336
Community service813,439 - 813,439 -
Debt service80,692 - 80,692 38,035,678
Capital related fees- 7,389,246 7,389,246 8,276,462
Unrestricted(126,831,648) 40,727,533 (86,104,115) (219,489,141)
Total net assets380,458,181$ 260,372,778$ 640,830,959$ 624,384,159$
Totals
CITY OF SAN BERNARDINO
Statement of Activities
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-22-
OperatingCapital
Charges forContributionsContributions
Functions/ProgramsExpensesServiceand Grantsand Grants
Governmental activities:
General government22,915,176$ 3,466,570$ 1,018,038$ -$
Public safety108,865,770 8,399,399 9,358,675 -
Streets30,143,061 6,476,362 - 11,305,306
Culture and recreation7,649,897 965,629 - -
Community development9,605,305 4,981,622 6,585,152 -
Economic development24,074,629 - 5,816,888 -
Community service7,823,261 322,873 3,533,708 -
Interest on long-term debt7,234,246 - - -
Total governmental activities218,311,345 24,612,455 26,312,461 11,305,306
Business-type activities:
Integrated Waste26,931,095 24,371,665 - -
Water39,951,698 37,106,217 1,838,223 2,384,710
Sewer23,232,878 25,888,729 - 671,211
.
Total business-type activities90,115,671 87,366,611 1,838,223 3,055,921
Total308,427,016$ 111,979,066$ 28,150,684$ 14,361,227$
General revenues:
Taxes:
Sales tax
Property taxes
Other taxes
Franchises
Investment income, unrestricted
Other
Intergovernmental (unrestricted)
Gain on sale of capital assets
Extraordinary item:
Gain on dissolution of economic
development agency
Transfers
Total general revenues, extraordinary
item and transfers
Change in net assets
Net assets, beginning of year, as restated (Note 25)
Net assets, end of year
Program Revenues
continued
-23-
Governmental Business-type
ActivitiesActivities20122011
(18,430,568)$ -$ (18,430,568)$ (20,623,918)$
(91,107,696) - (91,107,696) (90,029,491)
(12,361,393) - (12,361,393) (9,754,179)
(6,684,268) - (6,684,268) (5,230,977)
1,961,469 - 1,961,469 (1,369,481)
(18,257,741) - (18,257,741) (26,916,877)
(3,966,680) - (3,966,680) (2,444,460)
(7,234,246) - (7,234,246) (13,299,213)
(156,081,123) - (156,081,123) (169,668,596)
- (2,559,430) (2,559,430) 357,319
- 1,377,452 1,377,452 1,395,120
- 3,327,062 3,327,062 969,753
- 2,145,084 2,145,084 2,722,192
32,347,377 - 32,347,377 29,378,969
46,708,872 - 46,708,872 63,442,311
30,911,640 - 30,911,640 31,124,606
3,268,800 - 3,268,800 3,164,830
- 1,031,912 1,031,912 3,673,189
4,824,838 1,444,963 6,269,801 10,662,325
- - - 1,068,331
- - - 2,546,550
49,844,437 - 49,844,437 -
(65,000) 65,000 - -
167,840,964 2,541,875 170,382,839 145,061,111
11,759,841 4,686,959 16,446,800 (21,885,293)
368,698,340 255,685,819 624,384,159 646,269,452
380,458,181$ 260,372,778$ 640,830,959$ 624,384,159$
Totals
Changes in Net Assets
Net (Expense) Revenue and
CITY OF SAN BERNARDINO
Balance Sheet
June 30, 2012 (with comparative totals as of June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-24-
EconomicEconomicEconomic
DevelopmentDevelopmentDevelopment
AgencyAgencyAgency
SpecialDebt ServiceCapital
General FundRevenue FundFundProjects Fund
ASSETS
Cash and investments-$ -$ -$ -$
Cash and investments with
fiscal agents36,110 - - -
Deposits71,073 - - -
Receivables, net:
Accounts2,615,419 - - -
Interest- - - -
Leases- - - -
Notes- - - -
Other- - - -
Special assessments- - - -
Taxes- - - -
Inventory19,133 - - -
Prepaids5,100 - - -
Due from other governments7,032,123 - - -
Due from other funds- - - -
Advances to other funds- - - -
Other assets- - - -
Property held for resale- - - -
Total assets9,778,958$ -$ -$ -$
continued
-25-
Low and
ModerateNonmajor
Federal andIncomeGovernmental
State GrantsHousingFunds20122011
1,764,093$ 4,240,617$ 6,920,121$ 12,924,831$ 45,957,913$
- - - 36,110 38,857,027
- 200,000 - 271,073 376,821
7,178 - 17,587 2,640,184 3,746,917
184 - 3,787 3,971 85,544
- - - - 16,932,502
8,765,390 38,808,844 - 47,574,234 32,162,288
- - - - 3,022,335
- - 297,125 297,125 333,839
- - - - 220,366
- - - 19,133 19,133
- - - 5,100 102,250
8,018,321 - 1,832,359 16,882,803 18,948,515
- 155,500 20,895,135 21,050,635 15,285,592
- 9,347,332 1,837,174 11,184,506 18,299,841
- - 214,671 214,671 214,671
16,296,266 18,425,467 - 34,721,733 100,438,846
34,851,432$ 71,177,760$ 32,017,959$ 147,826,109$ 295,004,400$
Totals
CITY OF SAN BERNARDINO
Balance Sheet
June 30, 2012 (with comparative totals as of June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-26-
EconomicEconomicEconomic
DevelopmentDevelopmentDevelopment
AgencyAgencyAgency
SpecialDebt ServiceCapital
General FundRevenue FundFundProjects Fund
LIABILITIES AND FUND
BALANCES
Liabilities:
Accounts payable2,396,621$ -$ -$ -$
Accrued liabilities49,270 - - -
Due to other funds15,345,420 - - -
Due to agency funds- - - -
Retentions payable- - - -
Deferred revenues183,687 - - -
Deposits1,050,719 - - -
Short-term note payable- - - -
Advances from other funds1,629,400 - - -
Due to other governments- - - -
Due to Successor Agency1,332,925 - - -
Total liabilities21,988,042 - - -
Fund balances:
Nonspendable:
Deposits71,073 - - -
Inventory19,133 - - -
Prepaids5,100 - - -
Restricted for:
Low-Moderate Income Housing - - - -
Other special revenue funds- - - -
Community development - - - -
Debt service- - - -
Capital projects- - - -
Committed- - - -
Assigned- - - -
Unassigned (12,304,390) - - -
Total fund balances (deficit)(12,209,084) - - -
Total liabilities and fund balances9,778,958$ -$ -$ -$
continued
-27-
Low and
ModerateNonmajor
Federal andIncomeGovernmental
State GrantsHousingFunds20122011
2,336,453$ 276,031$ 1,172,515$ 6,181,620$ 6,095,200$
45,879 - - 95,149 -
4,555,504 - 2,544,527 22,445,451 17,311,389
659,486 - - 659,486 -
12,708 - 122,252 134,960 107,738
8,510,511 - 998,650 9,692,848 26,568,927
- - 34,110 1,084,829 55,040
- - - - 16,250,000
9,347,332 - 158,000 11,134,732 18,172,067
759,256 3,415,155 - 4,174,411 21,737
- - 900,000 2,232,925 -
26,227,129 3,691,186 5,930,054 57,836,411 84,582,098
- - - 71,073 76,821
- - - 19,133 19,133
- - - 5,100 5,100
- 67,486,574 - 67,486,574 62,120,420
8,624,303 - 7,888,492 16,512,795 6,291,998
- - - - 116,414,464
- - 80,692 80,692 30,049,030
- - 20,690,281 20,690,281 32,264,600
- - 589,180 589,180 356,373
- - 79,971 79,971 118,462
- - (3,240,711) (15,545,101) (37,294,099)
8,624,303 67,486,574 26,087,905 89,989,698 210,422,302
34,851,432$ 71,177,760$ 32,017,959$ 147,826,109$ 295,004,400$
Totals
-28-
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CITY OF SAN BERNARDINO
Reconciliation of the Balance Sheet of Governmental Funds
to the Government-Wide Statement of Net Assets
June 30, 2012
The accompanying notes are an integral part of these financial statements.
-29-
Fund balances of governmental funds89,989,698$
Capital assets not being depreciated 124,299,790
Capital assets being depreciated, net of accumulated depreciation 293,655,598
Pension obligation bonds(46,140,860)$
Certificates of participation(4,520,000)
Notes payable(1,200,000)
Lease revenue bonds(9,810,000)
OPEB obligation payable(25,068,601)
Capital leases payable(1,949,536)
Compensated absences(18,375,000)
Accrued interest payable(943,475)
California Infrastructure Bank(8,005,034) (116,012,506)
(20,129,262)
8,654,863
Net assets of governmental activities380,458,181$
Capitalassetsusedingovernmentalactivitiesarenotfinancialresourcesand,
therefore, are not reported in the funds.
Someliabilities,includingbondspayable,arenotdueandpayableinthecurrent
period and, therefore, are not reported in funds.
Internalservicefundsareusedbymanagementtochargevariouscoststoindividual
funds.Theassetsandliabilitiesoftheinternalservicefundsareincludedinthe
governmental activities in the statement of net assets.
Certainaccounts,interest,advances,andintergovernmentalreceivablesarenot
availabletopayforcurrent-periodexpendituresand,therefore,areoffsetbydeferred
revenue in the governmental funds.
Amountsreportedforgovernmentalactivitiesinthestatementofnetassetsaredifferent
because:
CITY OF SAN BERNARDINO
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-30-
EconomicEconomic
DevelopmentDevelopment
AgencyAgency
SpecialDebt Service
General FundRevenue FundFund
REVENUES
Taxes88,609,313$ -$ -$
Licenses and permits9,353,890 - -
Impact fees- - -
Fines and forfeitures1,904,361 - -
Investment income661,900 82,076 341,054
Lease- - -
Intergovernmental2,913,751 2,592,368 -
Charges for services7,469,936 - -
Other4,579,180 14,671 -
Total revenues115,492,331 2,689,115 341,054
EXPENDITURES
Current:
General government19,449,039 - -
Public safety93,351,536 - -
Streets7,862,657 - -
Culture and recreation5,561,811 - -
Community development- - -
Community service1,926,188 - -
Economic development- 6,995,065 -
Debt service:
Principal1,119,577 - 6,625,000
Interest and fiscal charges2,677,403 531,185 5,511,240
Total expenditures131,948,211 7,526,250 12,136,240
Excess (deficiency) of revenues
over (under) expenditures(16,455,880) (4,837,135) (11,795,186)
OTHER FINANCING SOURCES (USES)
Issuance of debt- 18,000,000 -
Gain/(Loss) on sale of property124,160 (5,455,317) -
Transfers in11,904,286 4,410,862 9,895,266
Transfers out(6,600,046) (7,992,735) -
Total other financing sources (uses)5,428,400 8,962,810 9,895,266
EXTRAORDINARY ITEM
Gain (loss) on dissolution of economic
development agency- (79,206,232) (36,773,859)
Net change in fund balances(11,027,480) (75,080,557) (38,673,779)
Fund balances (deficit), beginning of year,
as previously stated(1,181,604) 72,180,185 38,673,779
Prior period adjustment- 2,900,372 -
Fund balances (deficit), beginning of year,
as restated(1,181,604) 75,080,557 38,673,779
Fund balances, end of year(12,209,084)$ -$ -$
continued
-31-
Economic
DevelopmentLow and
AgencyModerateNonmajor
CapitalFederal andIncomeGovernmental
Projects FundState GrantsHousingFunds20122011
19,003,377$ -$ -$ 1,906,293$ 109,518,983$ 123,896,615$
- 485 - 888,857 10,243,232 8,516,516
- - - 239,553 239,553 618,030
- - - 68,686 1,973,047 2,338,684
28,354 9,654 36,752 (10,959) 1,148,831 1,257,290
2,049,151 - - - 2,049,151 1,227,763
5,000 15,762,698 - 12,756,230 34,030,047 48,457,193
- - - 4,855,764 12,325,700 12,886,715
489,844 2,878,899 3,560 69,873 8,036,027 8,925,459
21,575,726 18,651,736 40,312 20,774,297 179,564,571 208,124,265
- 1,999,879 - 242,648 21,691,566 17,234,673
- 6,713,174 - 2,812,057 102,876,767 101,657,184
- 385,716 - 8,531,639 16,780,012 24,433,688
- 983,950 - 977,022 7,522,783 6,579,287
- 3,850,086 6,002,494 - 9,852,580 15,901,097
- 3,779,227 - 2,262,203 7,967,618 10,266,256
11,079,138 - - - 18,074,203 29,735,854
410,000 472,182 - 1,245,478 9,872,237 12,627,234
497,390 275,065 - 223,931 9,716,214 13,745,859
11,986,528 18,459,279 6,002,494 16,294,978 204,353,980 232,181,132
9,589,198 192,457 (5,962,182) 4,479,319 (24,789,409) (24,056,867)
- - - - 18,000,000 23,171,122
- 83,000 - - (5,248,157) 2,546,549
- 7,883,898 - 4,344,836 38,439,148 33,952,713
(12,632,831) - - (9,268,762) (36,494,374) (30,530,449)
(12,632,831) 7,966,898 - (4,923,926) 14,696,617 29,139,935
(67,808,477) - 73,448,756 - (110,339,812) -
(70,852,110) 8,159,355 67,486,574 (444,607) (120,432,604) 5,083,068
71,237,110 (3,507,266) - 26,851,212 204,253,416 198,851,648
(385,000) 3,972,214 - (318,700) 6,168,886 6,487,586
70,852,110 464,948 - 26,532,512 210,422,302 205,339,234
-$ 8,624,303$ 67,486,574$ 26,087,905$ 89,989,698$ 210,422,302$
Totals
-32-
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CITY OF SAN BERNARDINO
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
of Governmental Funds to the Government-Wide Statement of Activities
Year Ended June 30, 2012
The accompanying notes are an integral part of these financial statements.
-33-
Net change in fund balance - total governmental funds(120,432,604)$
Capital outlay4,608,197$
Depreciation(18,195,383) (13,587,186)
76,829
Issuance of debt(18,000,000)$
Principal payments on debt9,872,237 (8,127,763)
Change in compensated absences648,759$
Change in accrued interest payable2,730,921
Change in unfunded OPEB obligation(5,217,893)
Change in component of lease revenue bonds shared with
internal service funds prior to dissolution of economic
development agency(125,000)
Amortization of bond issuance costs(48,555)
Amortization of deferred charges(72,057) (2,083,825)
(4,269,859)
160,184,249
Change in net assets of governmental activities11,759,841$
Amountsreportedforgovernmentalactivitiesin thestatementofactivitiesaredifferent
because:
Thetransferoflong-termassetsandliabilitiestotheSuccessorAgencyandhousing
successor(theCity)resultedinanextraordinarygain/lossduetothedissolutionofthe
EconomicDevelopmentAgency(EDA).Thecapitalassetswerenotcurrentresources
andthelong-termliabilitieswerenotpayableinthecurrentperiod,and,therefore,were
notreportedinthegovernmentalfunds.Certaindeferredrevenuesunderthemodified
accrualbasisofaccountingweretransferredtothehousingsuccessorbutarenot
deferred on the accrual basis of accounting used in the government-wide statements.
Governmentalfundsreportcapitaloutlaysasexpenditures.However,inthestatement
ofactivitiesthecostofthoseassetsisallocatedovertheirestimatedusefullivesand
reportedasdepreciationexpense.Thisistheamountbywhichcapitaloutlaywas
exceeded by depreciation, net of disposals.
Certainrevenuesinthegovernmentalfundsaredeferredbecausetheyare
measurablebutnotavailableunderthemodifiedaccrualbasisofaccounting.
However,therevenuesareincludedundertheaccrualbasisofaccountingusedinthe
government-wide statements. This amount represents the change during the year.
Debtproceedsarereportedasfinancingsourcesingovernmentalfundsandthus
contributetothechangeinfundbalance.Inthestatementofnetassets,however,
issuingdebtincreaseslong-termliabilitiesanddoesnotaffectthestatementof
activities.Similarly,repaymentofdebtprincipalisanexpenditureinthegovernmental
funds, but reduces long-term liabilities in the statement of net assets.
Someexpensesreportedinthestatementofactivitiesdonotrequiretheuseofcurrent
financialresourcesandthereforearenotreportedasexpendituresingovernmental
funds.
Internalservicefundsareusedbymanagementtochargecostsofactivitiesinvolved
inrenderingservicestodepartmentswithintheCity.Thechangesinnetassetsofthe
internal service funds are included in the statement of activities.
CITY OF SAN BERNARDINO
Statement of Net Assets
Proprietary Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-34-
Integrated
Waste WaterSewerTotals
ASSETS
Current assets:
Cash and investments3,208,578$ 10,294,297$ 27,100,276$ 40,603,151$
Cash and investments with
fiscal agents750 - - 750
Receivables, net:
Accounts3,418 6,612,142 3,189,196 9,804,756
Interest- - - -
Other- - - -
Inventory- 1,615,750 - 1,615,750
Prepaids- 1,140,386 920,615 2,061,001
Due from other governments19,519 998,535 356,206 1,374,260
Due from other funds2,264,989 799,077 850,894 3,914,960
Total current assets5,497,254 21,460,187 32,417,187 59,374,628
Noncurrent assets:
Cash and investments:
Restricted for debt service- 41,281 3,560,901 3,602,182
Restricted for capital related fees- 41,320 7,347,926 7,389,246
Restricted for deposits- 3,159,351 - 3,159,351
Restricted for consent decree- 20,957,382 - 20,957,382
Interest receivable- 95,138 80,765 175,903
Prepaid insurance - consent decree- 35,559,115 - 35,559,115
Note proceeds held by State- 10,000,000 - 10,000,000
Total restricted assets- 69,853,587 10,989,592 80,843,179
Note receivable- - - -
Capital assets:
Land and easements- 2,989,179 12,470,740 15,459,919
Construction in progress- 6,058,101 3,559,266 9,617,367
Intangible asset, net- - - -
Capital assets being
depreciated, net10,045,463 153,543,144 66,537,538 230,126,145
Total capital assets10,045,463 162,590,424 82,567,544 255,203,431
Other assets:
Debt issue costs, net- - 94,188 94,188
Deferred call premium- - 193,073 193,073
Total other assets - - 287,261 287,261
Total noncurrent assets10,045,463 232,444,011 93,844,397 336,333,871
Total assets15,542,717$ 253,904,198$ 126,261,584$ 395,708,499$
Business-type Activities - Enterprise funds
continued
-35-
Governmental
Activities -
Internal Service
Funds 20122011
-$ 40,603,151$ 45,186,196$
- 750 2,105,220
2,042 9,806,798 10,626,142
407 407 8,378
- - 2,371
216,381 1,832,131 2,062,456
- 2,061,001 1,202,647
76,105 1,450,365 1,708,016
2,713,916 6,628,876 4,849,717
3,008,851 62,383,479 67,751,143
- 3,602,182 3,615,442
- 7,389,246 8,276,462
- 3,159,351 3,040,423
- 20,957,382 21,783,878
- 175,903 104,559
- 35,559,115 35,590,400
- 10,000,000 -
- 80,843,179 72,411,164
- - 508
- 15,459,919 15,459,919
- 9,617,367 12,498,216
5,103,931 5,103,931 5,698,564
2,264,892 232,391,037 230,666,631
7,368,823 262,572,254 264,323,330
- 94,188 122,716
- 193,073 235,198
- 287,261 357,914
7,368,823 343,702,694 337,092,916
10,377,674$ 406,086,173$ 404,844,059$
Totals
CITY OF SAN BERNARDINO
Statement of Net Assets
Proprietary Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-36-
Integrated
Waste WaterSewerTotals
LIABILITIES
Current liabilities:
Accounts payable1,335,561$ 1,970,485$ 1,303,540$ 4,609,586$
Accrued liabilities5,000,000 612,983 266,609 5,879,592
Interest payable- 214,150 353,312 567,462
Due to other funds1,260,112 2,042,095 335,153 3,637,360
Advances from other funds- - - -
Deposits payable- 544,868 - 544,868
Claims and judgments
payable - current- 327,988 96,453 424,441
Compensated absences - current283,603 1,029,021 449,584 1,762,208
Capital lease payable - current2,936,684 - - 2,936,684
Due to New World - current- - - -
Notes payable - current- 993,436 2,000,399 2,993,835
Facility lease payable - current- - - -
Water bonds payable - current- 15,000 - 15,000
Certificates of participation - current- - 2,629,640 2,629,640
Total current liabilities10,815,960 7,750,026 7,434,690 26,000,676
Noncurrent liabilities:
Consumer deposits- 3,147,601 - 3,147,601
Claims and judgments payable- - - -
Compensated absences436,066 212,621 93,136 741,823
Deferred revenue - consent decree - 57,471,166 - 57,471,166
Capital lease payable 7,343,373 - - 7,343,373
Due to New World- - - -
Notes payable - 23,560,165 4,993,225 28,553,390
Facility lease payable- - - -
Water bonds payable - - - -
Certificates of participation - - 12,077,692 12,077,692
OPEB obligation- - - -
Total noncurrent liabilities7,779,439 84,391,553 17,164,053 109,335,045
Total liabilities18,595,399 92,141,579 24,598,743 135,335,721
NET ASSETS
Invested in capital assets,
net of related debt(234,594) 148,063,104 64,427,489 212,255,999
Restricted for:
Capital related fees- 41,320 7,347,926 7,389,246
Unrestricted (deficit)(2,818,088) 13,658,195 29,887,426 40,727,533
Total net assets (deficit)(3,052,682)$ 161,762,619$ 101,662,841$ 260,372,778$
Business-type Activities - Enterprise funds
continued
-37-
Governmental
Activities -
Internal Service
Funds 20122011
1,796,573$ 6,406,159$ 7,194,624$
69,662 5,949,254 3,590,605
- 567,462 607,177
1,596,700 5,234,060 2,823,920
49,774 49,774 127,774
- 544,868 423,832
3,121,931 3,546,372 6,331,289
367,679 2,129,887 2,484,282
176,818 3,113,502 3,419,043
513,540 513,540 645,000
- 2,993,835 2,893,389
- - 50,000
- 15,000 -
- 2,629,640 2,488,988
7,692,677 33,693,353 33,079,923
- 3,147,601 3,017,934
17,800,041 17,800,041 14,099,413
520,593 1,262,416 939,633
- 57,471,166 57,263,991
458,380 7,801,753 10,915,250
4,035,245 4,035,245 4,486,987
- 28,553,390 21,546,606
- - 85,000
- - 15,000
- 12,077,692 14,707,332
- - 6,530,000
22,814,259 132,149,304 133,607,146
30,506,936 165,842,657 166,687,069
2,184,840 214,440,839 206,686,177
- 7,389,246 8,276,462
(22,314,102) 18,413,431 23,194,351
(20,129,262)$ 240,243,516$ 238,156,990$
Totals
CITY OF SAN BERNARDINO
Statement of Revenues, Expenses, and Changes in Net Assets
Proprietary Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-38-
Integrated
WasteWaterSewerTotals
OPERATING REVENUES
Charges for services24,371,665$ 34,562,985$ 24,250,417$ 83,185,067$
Other operating revenues- 2,543,232 1,638,312 4,181,544
Total operating revenues24,371,665 37,106,217 25,888,729 87,366,611
OPERATING EXPENSES
Cost of sales and services17,339,587 - - 17,339,587
Administration1,247,509 15,683,420 2,224,773 19,155,702
Engineering, operations and
distribution administration- 621,410 1,598,854 2,220,264
Plant operations- 8,663,046 9,770,245 18,433,291
Maintenance- 1,628,764 3,257,127 4,885,891
Environmental control5,000,000 - 557,828 5,557,828
Distribution- 4,296,461 - 4,296,461
Engineering- 2,492,056 - 2,492,056
Claims expense- - - -
Depreciation and amortization2,952,864 5,770,673 4,645,127 13,368,664
Total operating expenses26,539,960 39,155,830 22,053,954 87,749,744
Operating income (loss)(2,168,295) (2,049,613) 3,834,775 (383,133)
NONOPERATING REVENUES
(EXPENSES)
Investment income- 219,027 812,885 1,031,912
Noncapital grants- 1,838,223 - 1,838,223
Interest expense and fiscal charges(427,794) (526,915) (1,147,810) (2,102,519)
Gain/(loss) on disposal of capital
assets36,659 (268,953) (31,114) (263,408)
Other366,040 1,175,067 (96,144) 1,444,963
Total nonoperating revenues
(expenses)(25,095) 2,436,449 (462,183) 1,949,171
Income before contributions
and transfers(2,193,390) 386,836 3,372,592 1,566,038
CONTRIBUTIONS AND TRANSFERS
Capital contributions- 2,384,710 671,211 3,055,921
Transfers in65,000 - - 65,000
Transfers out- - - -
Total contributions and transfers65,000 2,384,710 671,211 3,120,921
Change in net assets(2,128,390) 2,771,546 4,043,803 4,686,959
Net assets (deficit), beginning of
year, as previously stated(924,292) 154,850,957 100,089,728 254,016,393
Prior period adjustment- 4,140,116 (2,470,690) 1,669,426
Net assets (deficit), beginning of
year, as restated(924,292) 158,991,073 97,619,038 255,685,819
Net assets (deficit), end of year(3,052,682)$ 161,762,619$101,662,841$260,372,778$
Business-type Activities - Enterprise funds
continued
-39-
Governmental
Activities -
Internal Service
Funds20122011
23,981,833$ 107,166,900$ 100,995,192$
- 4,181,544 3,713,323
23,981,833 111,348,444 104,708,515
17,872,644 35,212,231 34,143,038
- 19,155,702 20,580,464
- 2,220,264 2,112,247
- 18,433,291 17,282,277
- 4,885,891 4,743,620
- 5,557,828 490,593
- 4,296,461 3,925,108
- 2,492,056 2,220,956
6,738,749 6,738,749 13,113,331
1,896,818 15,265,482 15,760,616
26,508,211 114,257,955 114,372,250
(2,526,378) (2,909,511) (9,663,735)
(3,983) 1,027,929 1,391,472
- 1,838,223 1,928,999
(176,896) (2,279,415) (2,414,135)
- (263,408) 40,137
447,172 1,892,135 1,021,456
266,293 2,215,464 1,967,929
(2,260,085) (694,047) (7,695,806)
- 3,055,921 4,390,162
- 65,000 128,800
(2,009,774) (2,009,774) (3,551,064)
(2,009,774) 1,111,147 967,898
(4,269,859) 417,100 (6,727,908)
(15,859,403) 238,156,990 244,884,898
- 1,669,426 -
(15,859,403) 239,826,416 244,884,898
(20,129,262)$ 240,243,516$ 238,156,990$
Totals
CITY OF SAN BERNARDINO
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-40-
Integrated
WasteWaterSewerTotals
Cash flows from operating activities:
Cash received from customers24,270,019$ 35,327,878$ 24,853,267$ 84,451,164$
Cash received from user departments- - - -
Cash payments to employees and
suppliers for goods and services(18,321,822) (28,961,845) (15,864,999) (63,148,666)
Cash payments for claims and
insurance- - - -
Cash payments to employees for
services- (10,794,906) (4,431,172) (15,226,078)
Cash received from (paid for)
other activities366,040 1,175,067 (67,616) 1,473,491
Net cash provided by (used for)
operating activities6,314,237 (3,253,806) 4,489,480 7,549,911
Cash flows from noncapital
financing activities:
Transfer from other funds65,000 - - 65,000
Transfer to other funds- - - -
Interfund loans- - - -
Collection on notes receivable- 508 - 508
Consent decree insurance drawdowns- 2,076,683 - 2,076,683
Net cash provided by (used for)
noncapital financing activities65,000 2,077,191 - 2,142,191
Cash flows from capital and related
financing activities:
Acquisition of capital assets(2,042,547) (7,924,063) (1,602,831) (11,569,441)
Proceeds from capital debt- - - -
Principal payments on long-term debt(2,869,838) (974,027) (4,417,731) (8,261,596)
Interest paid on long-term debt(427,794) (505,819) (1,166,496) (2,100,109)
Proceeds from sale of capital assets77,530 (164,911) 54,246 (33,135)
Charges to property owners for
capital projects- 2,247,743 671,211 2,918,954
Grant proceeds received- 136,967 - 136,967
Net cash provided by (used for)
capital and related financing
activities(5,262,649) (7,184,110) (6,461,601) (18,908,360)
Business-type Activities - Enterprise Funds
continued
-41-
Governmental
Activities -
Internal Service
Funds20122011
-$ 84,451,164$ 82,522,431$
24,644,648 24,644,648 22,688,203
(16,955,809) (80,104,475) (65,391,927)
(5,958,796) (5,958,796) (6,242,189)
- (15,226,078) (13,429,057)
447,172 1,920,663 1,198,695
2,177,215 9,727,126 21,346,156
- 65,000 128,800
(2,009,774) (2,009,774) (3,551,064)
1,728,812 1,728,812 3,466,928
- 508 2,937
- 2,076,683 1,928,999
(280,962) 1,861,229 1,976,600
(505,812) (12,075,253) (12,170,401)
- - 387,501
(1,257,402) (9,518,998) (4,811,155)
(176,896) (2,277,005) 104,610
- (33,135) (4,587,544)
- 2,918,954 3,744,686
- 136,967 -
(1,940,110) (20,848,470) (17,332,303)
Totals
CITY OF SAN BERNARDINO
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-42-
Integrated
WasteWaterSewerTotals
Cash flows from investing activities:
Sale of investments-$ -$ -$ -$
Interest received- 147,683 812,885 960,568
Net cash provided by investing
activities- 147,683 812,885 960,568
Net increase (decrease) in cash and
investments1,116,588 (8,213,042) (1,159,236) (8,255,690)
Cash and investments, beginning of year2,092,740 42,706,673 35,607,438 80,406,851
Cash and investments, end of year 3,209,328$ 34,493,631$ 34,448,202$ 72,151,161$
Reconciliation of cash and investments
to amounts reported on statement of
net assets:
Cash and investments3,208,578$ 10,294,297$ 27,100,276$ 40,603,151$
Cash and investments with
fiscal agents750 - - 750
Cash and investments:
Restricted for debt service- 41,281 3,560,901 3,602,182
Restricted for capital related fees- 41,320 7,347,926 7,389,246
Restricted for deposits- 3,159,351 - 3,159,351
Restricted for consent decree- 20,957,382 - 20,957,382
Less restricted cash and investments
reported with investing activities
Cash and investments:
Restricted for debt service- - (3,560,901) (3,560,901)
Cash and investments, end of year 3,209,328$ 34,493,631$ 34,448,202$ 72,151,161$
Business-type Activities - Enterprise Funds
continued
-43-
Governmental
Activities -
Internal Service
Funds20122011
-$ -$ 6,179,053$
3,988 964,556 1,297,282
3,988 964,556 7,476,335
(39,869) (8,295,559) 13,466,788
39,869 80,446,720 66,979,932
-$ 72,151,161$ 80,446,720$
-$ 40,603,151$ 47,291,416$
- 750 -
- 3,602,182 3,615,442
- 7,389,246 8,276,462
- 3,159,351 3,040,423
- 20,957,382 21,783,878
- (3,560,901) (3,560,901)
-$ 72,151,161$ 80,446,720$
Totals
CITY OF SAN BERNARDINO
Statement of Cash Flows
Proprietary Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-44-
Integrated
WasteWaterSewerTotals
Reconciliation of operating income
(loss) to net cash provided by
(used for) operating activities:
Operating income (loss)(2,168,295)$ (2,049,613)$ 3,834,775$ (383,133)$
Adjustments to reconcile operating
income (loss) to net cash provided
by (used for) operating activities:
Depreciation and amortization2,952,864 5,770,673 4,645,127 13,368,664
Other nonoperating revenues
(expenses)366,040 1,175,067 (67,616) 1,473,491
(Increase) decrease in assets:
Accounts receivable2,182,862 (930,894) (430,582) 821,386
Other receivables- - - -
Inventory- 115,168 - 115,168
Prepaids- (937,467) 79,113 (858,354)
Due from other governments(19,519) (823,249) 15,503 (827,265)
Due from other funds(2,264,989) (220,598) (620,383) (3,105,970)
Increase (decrease) in liabilities:
Accounts payable and
accrued expenses128,148 (1,615,610) (538,593) (2,026,055)
Accrued liabilities5,000,000 - - 5,000,000
Due to other funds141,881 85,678 (32,980) 194,579
Deposits payable- 250,703 - 250,703
Claims and judgments- 117,972 17,786 135,758
Deferred revenue- - - -
Compensated absences(4,755) (94,636) 20,330 (79,061)
OPEB obligation- (4,097,000) (2,433,000) (6,530,000)
Net cash provided by (used for)
operating activities6,314,237$ (3,253,806)$ 4,489,480$ 7,549,911$
Noncash, investing, capital and
financing activities:
Acquisition of capital asset through
capital lease-$ -$ -$ -$
Developer contributions- - - -
Business-type Activities - Enterprise Funds
continued
-45-
Governmental
Activities -
Internal Service
Funds20122011
(2,526,378)$ (2,909,511)$ (9,663,735)$
1,896,818 15,265,482 15,760,616
447,172 1,920,663 1,202,564
- 821,386 1,639,904
329 329 927
115,157 230,325 22,757
- (858,354) 252,208
662,486 (164,779) 1,217,577
- (3,105,970) 287,014
684,567 (1,341,488) 1,553,747
69,662 5,069,662 -
- 194,579 1,224,272
- 250,703 (842)
779,953 915,711 6,165,894
- - (63,188)
47,449 (31,612) 67,441
- (6,530,000) 1,679,000
2,177,215$ 9,727,126$ 21,346,156$
-$ -$ 448,158$
- - 732,322
Totals
CITY OF SAN BERNARDINO
Statement of Fiduciary Net Assets
Fiduciary Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
The accompanying notes are an integral part of these financial statements.
-46-
Redevelopment
Obligation
Retirement
Fund
(Successor
Agency)Agency Funds
201220122011
ASSETS
Cash and investments34,506,252$ 2,629,936$ 4,058,896$
Cash with fiscal agents36,912,220 - -
Deposits300,000 - -
Accounts receivable, net134,766 13,970 144,005
Interest receivable202 78 1,314
Taxes receivable11,206 - -
Notes receivable1,364,254 - -
Due from other governments- 55,103 3,021
Due from City of San Bernardino2,232,925 659,486 -
Property held for resale48,607,836 - -
Unamortized bond issuance costs1,237,905 - -
Capital assets (Note 26):
Not being depreciated11,631,572 - -
Being depreciated, net8,572,842 - -
Total assets145,511,980 3,358,573$ 4,207,236$
LIABILITIES
Accounts payable5,080,994 -$ 101,151$
Retention payable143,505 - -
Deposits payable4,532 2,843,516 3,590,678
Interest payable2,410,453 - -
Short-term note payable16,250,000 - -
Long-term liabilities (Note 26):
Due within one year9,472,064 - -
Due in more than one year169,582,209 - -
Due to bond holders- 515,057 515,407
Total liabilities202,943,757 3,358,573$ 4,207,236$
NET ASSETS
Net assets (deficit) held for dissolution of
economic development agency(57,431,777)
Total net assets (deficit)(57,431,777)$
CITY OF SAN BERNARDINO
Statement of Changes in Fiduciary Net Assets
Fiduciary Funds
Five Months Ended June 30, 2012
The accompanying notes are an integral part of these financial statements.
-47-
Redevelopment
Obligation
Retirement
Fund
(Successor
Agency)
ADDITIONS
Property tax revenue 11,581,222$
Investment income 186,231
Intergovernmental 50,331
Intergovernmental - City of San Bernardino2,003,980
Lease revenue 1,348,683
Other revenue 221,760
Total additions 15,392,207
DEDUCTIONS
Administrative expenses 2,391,206
Professional services 1,512,491
Operation of acquired property319,604
Project costs 5,284,487
Pass-through contributions to other governments1,348,246
Interest expense 7,654,292
Remittance to County under AB 14844,183,433
Depreciation and amortization285,788
Total deductions 22,979,547
Extraordinary loss on dissolution of economic development agency(49,844,437)
Change in net assets (57,431,777)
Net assets, beginning of year -
Net assets (deficit), end of year(57,431,777)$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-48-
1. Summary of Significant Accounting Policies
The City of San Bernardino, California (City) was incorporated on April 13, 1854, as a Charter
City. The City operates under a Mayor/Council/City Manager form of government and provides
the following services: public safety (police and fire), highways and streets, health and social
services, culture-recreation, public improvements, community development (planning, building
and zoning), public utilities (water, sewage and solid waste), and general administrative services.
a. Reporting Entity
As required by generally accepted accounting principles, these financial statements present
the activities of the City and its component units, entities for which the City is considered to be
financially accountable. The City is considered to be financially accountable for an
organization if the City appoints a voting majority of that organization's governing body and the
organization is able to provide specific financial benefits to or impose specific financial burdens
on the City. The City is also considered to be financially accountable if an organization is
fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or
issue bonded debt without approval from the City). In certain cases, other organizations are
included as component units if the nature and significance of their relationship with the City are
such that their exclusion would cause the City's financial statements to be misleading or
incomplete. Blended component units, although legally separate entities, are, in substance,
part of the City's operations, and data from these units are combined with data of the primary
government. Based on the criteria above, the City has two component units, both of which are
considered to be blended component units. These component units are described as follows:
The Successor Agency to the redevelopment agency of the City of San Bernardino (Successor
Agency) was established following the dissolution of all redevelopment agencies in the State
of California on February 1, 2012 (resulting from Assembly Bill X1 26) (See note 26). The
former redevelopment agency of the City of San Bernardino, commonly identified as the City
of San Bernardino Economic Development Agency (EDA), was governed by a board
composed of the City’s elected Mayor and Common Council. The activity of the EDA is
reported in the accompanying financial statements as separate special revenue, debt service
and capital projects funds, consistent with prior years, through the date of dissolution,
February 1, 2012. There are no separate financial statements issued for the EDA.
The San Bernardino Joint Powers Financing Authority (Authority) was established pursuant
to a Joint Exercise of Powers Agreement dated August 21, 1989, by and between the City
and the EDA. The Authority was created for the purpose of providing financing for
redevelopment activities for the City, the EDA, or other local agencies in the State of
California, the acquisition, construction or installation by the Authority of public capital
improvements and/or the purchase by the Authority of public obligations within the meaning
of the Marks-Roos Act. The Authority is authorized pursuant to the Marks-Roos Act to
borrow money for the purpose of financing the acquisition of bonds, notes and other
obligations of, or for the purpose of making loans to, the City, the EDA, or such other local
agencies to provide financing for redevelopment activities of the City or the EDA. The
Authority is governed by a board composed of the City's elected council. There are no
individual financial statements issued for the Authority.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-49-
1. Summary of Significant Accounting Policies (continued)
b. Basis of Accounting and Measurement Focus
The basic financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to basic financial statements
Financial reporting is based upon all Governmental Accounting Standards Board (GASB)
pronouncements. GASB Statement No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA
Pronouncements, establishes accounting and financial reporting standards for financial
statements of state and local governments. The standard incorporates into the GASB’s
authoritative literature the applicable guidance previously only found in certain FASB and
American Institute of Certified Public Accountants (AICPA) pronouncements issued before
November 30, 1989.
Government-wide Financial Statements
Government-wide financial statements display information about the reporting government
as a whole, except for its fiduciary activities. These statements include separate columns for
the governmental and business-type activities of the primary government (including its
blended component units), as well as any discretely presented component units. The City
has no discretely presented component units. Eliminations have been made in the statement
of activities so that certain allocated expenses are recorded only once (by the function to
which they were allocated). However, general government expenses have not been
allocated as direct expenses to the various functions of the City.
Government-wide financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Under the economic resources
measurement focus, all (both current and long-term) economic resources and obligations of
the reporting government are reported in the government-wide financial statements. Basis of
accounting refers to when revenues and expenses are recognized in the accounts and
reported in the financial statements. Under the accrual basis of accounting, revenues,
expenses, gains, losses, assets and liabilities resulting from exchange and exchange-like
transactions are recognized when the exchange takes place. Revenues, expenses, gains,
losses, assets and liabilities resulting from nonexchange transactions are recognized in
accordance with the requirements of GASB Statement No. 33.
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 for goods or services provided by one fund to another. Elimination of these
would distort the direct costs and program revenues reported for the various functions
concerned.
Program revenues include charges for services, special assessments, and payments made
by parties outside of the reporting government's citizenry if that money is restricted to a
particular program. Program revenues are netted with program expenses in the statement of
activities to present the net cost of each program.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-50-
1. Summary of Significant Accounting Policies (continued)
b. Basis of Accounting and Measurement Focus (continued)
Government-wide Financial Statements (continued)
Amounts paid to acquire capital assets are capitalized as assets in the government-wide
financial statements, rather than reported as an expenditure. Proceeds of long-term debt are
recorded as a liability in the government-wide financial statements, rather than as another
financing source. Amounts paid to reduce long-term indebtedness of the reporting
government are reported as a reduction of the related liability, rather than as an expenditure.
In the government-wide statements, when an expense is incurred for purposes for which
both restricted and unrestricted net assets are available, the City’s policy is to apply
restricted net assets first.
Fund Financial Statements
The underlying accounting system of the City is organized and operated on the basis of
separate funds, each of which is considered to be a separate accounting entity. The
operations of each fund are accounted for with a separate set of self-balancing accounts that
comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as
appropriate. Governmental resources are allocated to and accounted for in individual funds
based upon the purposes for which they are to be spent and the means by which spending
activities are controlled.
Fund financial statements for the primary government's governmental, proprietary, and
fiduciary funds are presented after the government-wide financial statements. These
statements display information about major funds individually and nonmajor funds in the
aggregate for governmental and proprietary funds. Fiduciary statements include financial
information for fiduciary funds and similar component units. Fiduciary funds of the City
primarily represent assets held by the City in a custodial capacity for other individuals or
organizations.
Governmental Funds
In the fund financial statements, governmental funds are presented using the modified-
accrual basis of accounting. Their revenues are recognized when they become
measurable and available as net current assets. Measurable means that the amounts can
be estimated, or otherwise determined. Available means that the amounts were collected
during the reporting period or soon enough thereafter to be available to finance the
expenditures accrued for the reporting period. The City uses an availability period of 60 days
for all revenues except reimbursable grants which use a six month availability period.
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in-lieu, transient
occupancy taxes, grants and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the
current fiscal period to the extent normally collected within the availability period. Other
revenue items are considered to be measurable and available when cash is received by the
government.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-51-
1. Summary of Significant Accounting Policies (continued)
b. Basis of Accounting and Measurement Focus (continued)
Governmental Funds (continued)
Revenue recognition is subject to the measurable and available criteria for the
governmental funds in the fund financial statements. Exchange transactions are recognized
as revenues in the period in which they are earned (i.e., the related goods or services are
provided). Locally imposed derived tax revenues are recognized as revenues in the period
in which the underlying exchange transaction upon which they are based takes place.
Imposed nonexchange transactions are recognized as revenues in the period for which
they were imposed. If the period of use is not specified, they are recognized as revenues
when an enforceable legal claim to the revenues arises or when they are received,
whichever occurs first. Government-mandated and voluntary nonexchange transactions
have been recognized as revenues when all applicable eligibility requirements have been
met.
In the fund financial statements, governmental funds are presented using the current
financial resources measurement focus. This means that only current assets and current
liabilities are generally included on their balance sheets. The reported fund balance (net
current assets) is considered to be a measure of “available spendable resources.”
Governmental fund operating statements present increases (revenues and other financing
sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of “available spendable
resources” during a period.
Non-current portions of long-term receivables due to governmental funds are reported on their
balance sheets in spite of their spending measurement focus. However, special reporting
treatments are used to indicate that they should not be considered “available spendable
resources,” since they do not represent net current assets. Recognition of governmental
fund type revenue represented by non-current receivables is deferred until they become
current receivables.
Due to the nature of their spending measurement focus, expenditure recognition for
governmental fund types excludes amounts represented by noncurrent liabilities. Since they
do not affect net current assets, such long-term amounts are not recognized as
governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that
resources were expended, rather than as fund assets. The proceeds of long-term debt are
recorded as other financing sources rather than as a fund liability. Amounts paid to reduce
long-term indebtedness are reported as fund expenditures.
When expenditures are incurred for purposes for which both restricted and unrestricted
(committed, assigned, or unassigned) fund balances are available, the City’s policy is to
apply restricted first. When expenditures are incurred for purposes for which committed,
assigned, or unassigned fund balances are available, the City’s policy is to apply committed
fund balance first, then assigned fund balance, and finally unassigned fund balance.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-52-
1. Summary of Significant Accounting Policies (continued)
b. Basis of Accounting and Measurement Focus (continued)
Proprietary Funds
The City's enterprise and internal service funds are proprietary funds. In the fund financial
statements, proprietary funds and fiduciary funds are presented using the accrual basis of
accounting. Revenues are recognized when they are earned and expenses are recognized
when the related goods or services are delivered. In the fund financial statements, proprietary
funds and fiduciary funds are presented using the economic resources measurement focus.
This means that all assets and all liabilities (whether current or non-current) associated with
their activity are included on their balance sheets. Proprietary fund type operating statements
present increases (revenues) and decreases (expenses) in total net assets.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with principal activity of the fund. Exchange transactions are those in
which each party receives and gives up essentially equal values. Operating expenses for the
enterprise and internal service funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non-operating revenues and expenses. Non-operating revenues,
such as subsidies, taxes and investment earnings result from nonexchange transactions or
ancillary activities. Amounts paid to acquire capital assets are capitalized as assets in the
proprietary fund financial statements, rather than reported as expenditures. Proceeds of long-
term debt are recorded as liabilities in the proprietary fund financial statements, rather than as
other financing sources. Amounts paid to reduce long-term indebtedness of the proprietary
funds are reported as a reduction of the related liability, rather than as expenditures.
Fiduciary Funds
The City maintains two fiduciary fund types. The first is a private-purpose trust fund
which uses the economic resources measurement focus and the accrual basis of
accounting. Private-purpose trust funds are used to report trust arrangements under
which principal and income benefit individuals, private organizations, or other
governments. The second is an agency fund, which has no measurement focus. Agency
funds are custodial in nature (assets equal liabilities) and do not involve the recording of
City revenues and expenses. The Successor Agency is reported as a private-purpose
trust fund within these statements.
c. Fund Classifications
The funds designated as major funds are determined by a mathematical calculation
consistent with GASB Statement No. 34. The City reports the following major
governmental funds:
General Fund – This is the primary operating fund of the City. It accounts for all activities
of the general government, except those required to be accounted for in another fund.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-53-
1. Summary of Significant Accounting Policies (continued)
c. Fund Classifications (continued)
Economic Development Agency Special Revenue Fund – This fund represents the Low-
and Moderate-Income Housing portion of redevelopment tax increment as required by
California state law. As of February 1, 2012, the EDA was dissolved as a matter of State law,
and ceased to exist. The activity reported in these financial statements is for the period from
July 1, 2011 through January 31, 2012.
Economic Development Agency Debt Service Fund – This fund is used to account for the
accumulation of resources for, and the payment of, principal, interest and related costs of
liabilities of the redevelopment agency. As of February 1, 2012, the EDA was dissolved as a
matter of State law, and ceased to exist. The activity reported in these financial statements
is for the period from July 1, 2011 through January 31, 2012.
Economic Development Agency Capital Projects Fund – This fund is used to account for
the financing and construction of projects of the redevelopment agency in accordance with
the State’s Community Redevelopment Law, as well as administrative expenditures incurred
in sustaining EDA activities. As of February 1, 2012, the EDA was dissolved as a matter of
State law, and ceased to exist. The activity reported in these financial statements is for the
period from July 1, 2011 through January 31, 2012.
Federal and State Grants – This fund is used to report various grants awarded to the City by
the Federal, State and local governments not otherwise accounted for in the General Fund
or Capital Projects Funds. A detailed report by program is available under a separate report
meeting the criteria of the Office of Management and Budget Circular A-133, Audits of
States, Local Governments, and Non-Profit Organizations for all federal grants received by
the City.
Low and Moderate Income Housing – This fund is used for the continued maintenance and
operations of low and moderate income housing project activities of the former
redevelopment agency. This fund was established on February 1, 2012 when the City
elected to become the Housing Successor to the housing related activities of the former
redevelopment agency.
The City reports the following major enterprise funds:
Integrated Waste Fund – This fund is used to account for the provision of refuse collection
to the residential, commercial and industrial segments of the City. All activities necessary to
provide such services are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, financing and related debt service, and billing and
collection.
Water Fund – This fund is used to account for the provision of water services to the
residential, commercial and industrial segments of the City. All activities necessary to
provide such services are accounted for in this fund, including, but not limited to,
administration, operations, maintenance, financing and related debt service, and billing and
collection.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-54-
1. Summary of Significant Accounting Policies (continued)
c. Fund Classifications (continued)
Sewer Fund – This fund is used to account for the provision of wastewater collection and
treatment to residential, commercial and industrial segments of the City. All activities
necessary to provide such services are accounted for in this fund, including, but not limited
to, administration, operations, maintenance, financing and related debt service, and billing
and collection.
The City's fund structure also includes the following fund types:
Special Revenue Funds – These funds are used to account for the proceeds of specific
revenue sources that are legally restricted and expended for specified purposes other than
debt service or capital projects.
Debt Service Funds – These funds are used to account for the accumulation of resources
for, and the payment of principal, interest, and related costs of the long-term debt of the
governmental funds.
Capital Projects Funds – These funds are used to account for financial resources to be used
for the acquisition or construction of major capital facilities (other than those financed by
proprietary funds).
Internal Service Funds – These funds are used to account for the financing of special
activities that provide services within the City. Such activities include: unemployment
insurance, workers' compensation, liability insurance, motorpool, telephone support,
information systems, utility and central services.
Agency Funds – These funds are used to account for money and property held by the City
as trustee or custodian. Such funds include Special Deposits, Cemetery Perpetual Care,
San Bernardino Regional Water Resource Authority, and Sturges Center for the Arts. They
are also used to account for various assessment districts for which the City acts as an agent
for debt service activity, as the City is prohibited from levying additional taxes for these
districts. Such funds include Assessment District’s #961, #977A, #977B, and #1003.
d. Cash and Investments
Investments are reported in the accompanying financial statements at fair value, except for
certain investment contracts that are reported at cost because they are not transferable and
they have terms that are not affected by changes in market interest rates. Changes in fair
value that occur during a fiscal year are recognized as investment income reported for that
fiscal year, and may result in negative investment income in the accompanying financial
statements. Investment income includes interest earnings, changes in fair value, and any
gains or losses realized upon the liquidation, maturity, or sale of investments.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-55-
1. Summary of Significant Accounting Policies (continued)
d. Cash and Investments (continued)
The City pools cash and investments of all funds, except for cash and investments held by
fiscal agents. Each fund's share in this pool is reported in the accompanying financial
statements as cash and investments. Investment income earned by the pooled investments
is allocated to the various funds based on each fund's average cash and investment
balance, except for investment income associated with funds not legally required to receive
pooled investment income which has been assigned to and recorded as revenue of the
general fund, as provided by California Government Code Section 53647.
e. Cash Equivalents
For purposes of the statement of cash flows, amounts reported as cash and investments are
treated as cash equivalents, defined as short-term, highly liquid investments that are both
readily convertible to known amounts of cash or so near their maturity that they present
insignificant risk of changes in value because of changes in interest rates. Cash equivalents
have an original maturity date of three months or less from the date of purchase. All cash of
the Proprietary Funds and Internal Service Funds are held in a City pool, and are considered
cash and cash equivalents for purposes of the statement of cash flows.
f. Receivables
Customer or trade receivables are reported as “accounts receivable” and are shown net of
an allowance for uncollectible accounts based on historical and management estimates.
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either “due to/from other funds”
(i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-
current portion of interfund loans). Long-term interfund advances are recorded as advances
to other funds and as nonspendable fund balance by the advancing governmental fund.
Noncurrent portions of long-term receivables (e.g. “notes receivable”) due to governmental
fund types are reported in their respective balance sheets despite their spending
measurement focus. Special reporting treatments are used to indicate, however, that they
should not be considered available spendable resources, since they do not represent net
current assets. Recognition of governmental fund type revenues represented by noncurrent
receivables is deferred until they become current receivables. Noncurrent portions of long-term
notes receivable are offset by nonspendable fund balance in the general fund, and by
restricted, committed or assigned fund balance in other funds.
g. Inventories
Inventories are valued on the average cost method, which approximates the first-in-first-out
(FIFO) method. Inventory balances represent expendable supplies held for consumption.
Reported expenditures reflecting the purchase of supplies have been restated to reflect the
consumption method of recognizing inventory-related expenditures. Inventory reported in
governmental funds is offset with nonspendable fund balance to show that inventories do not
constitute available spendable resources, even though they are a component of fund balance.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-56-
1. Summary of Significant Accounting Policies (continued)
h. Prepaid Items
Prepaid items are reported in the governmental funds under the consumption method and are
reported as a nonspendable component of fund balance to indicate that they are not
spendable for appropriation and are not expendable financial resources.
i. Property Held for Resale
Property held for resale represents land, structures, and related improvements that were
acquired for resale as part of the City’s redevelopment and grant activities. Property held for
resale is reported at cost. These costs will be charged to current year project expenditures
when the related properties are sold or disposed.
j. Restricted Assets
Amounts reported as restricted assets in the enterprise funds have been restricted by bond
indentures or are to be used for specified purposes based on contract provisions, such as
bonded debt service.
k. Capital Assets
Capital assets (including infrastructure) are recorded at cost where historical records are
available and at an estimated original cost where no historical records exist. Contributed
capital assets are valued at their estimated fair market value at the date of the contribution.
Generally, capital asset purchases in excess of $5,000 are capitalized if they have an
expected useful life of three years or more. Infrastructure projects individually exceeding
$200,000 are capitalized if the project does not represent routine ordinary maintenance to
keep the infrastructure assets in the condition necessary to perform its intended function, but
rather improves the asset beyond its original condition or functionally, or extraordinarily
extends the life of the asset beyond its original condition of functionality, or extraordinarily
extends the life of the asset beyond original expectations. Generally, street slurry seals and
repairs adding one inch or less of asphalt are considered to be routine maintenance
regardless of the cost of the project.
Capital assets include public domain (infrastructure) consisting of certain improvements other
than buildings, including pavement, curbs and gutters, streets and sidewalks, drainage
systems, traffic control devices, streetlights, and right-of-way corridors within the City.
Capital assets used in operations are depreciated over their estimated useful lives using the
straight-line method in the government-wide financial statements and in the financial
statements of the proprietary funds. Depreciation is charged as an expense against operations
and accumulated depreciation is reported on the respective balance sheet. The ranges of lives
used for depreciation purposes for each capital asset class are:
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-57-
1. Summary of Significant Accounting Policies (continued)
k. Capital Assets (continued)
Years
Buildings and improvements 10 - 40
Infrastructure 20 - 50
Wells, pumping plants, reservoirs, and
distribution system 8 - 50
Interceptor lines 50
Disposal plant 35 - 50
Leasehold improvements 5 - 25
Shops, offices, stores, and yards 10 - 20
Tools and equipment 4 - 20
Office equipment 5 - 20
Communication equipment 7 - 10
Computer equipment 5 - 10
Automotive equipment 3 - 8
Contributed capital assets are recorded in the proprietary funds at fair market value at the time
received.
l. Deferred Charges
Bond discounts and issuance costs are deferred and amortized over the term of the bonds
using the straight-line method, which materially approximates the effective interest method.
Bond discounts are presented as a reduction of the face amount of bonds payable whereas
issuance costs are recorded as an asset, deferred charges. Unamortized refunding costs
represent the difference between the reacquisition price of debt (outstanding principal of the
debt, as well as the call premium) and its net carrying value (face value of the debt, adjusted
for unamortized premiums, discounts or issuance costs). The difference is amortized over the
shorter of 1) the life of the refunding debt or 2) the life of the refunded debt. The amortization is
treated as an adjustment to interest expense of the current period. The remaining unamortized
refunding costs are presented as a reduction of the face amount of the new debt.
m. Compensated Absences
Certain employees are permitted to accumulate a limited amount of earned vacation and sick
leave. Various negotiation groups have different sell-back and cash out options. Additionally,
cash out options upon retirement or death of the employee vary based on the negotiation
group. Employee’s accrued vacation and sick leave benefits are recognized as a liability, and
are reported as compensated absences in the government-wide and proprietary financial
statements.
n. Fund Balances
Fund balance of governmental funds is reported in various categories based on the nature of
any limitations requiring the use of resources for specific purposes. The following
classifications describe the relative strength of the spending constraints placed on the
purposes for which resources can be used:
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-58-
1. Summary of Significant Accounting Policies (continued)
n. Fund Balances (continued)
Nonspendable – amounts that are not in a spendable form (such as inventory) or are
required to be maintained intact.
Restricted – amounts constrained to specific purposes by their providers (such as grantors,
bondholders and higher levels of government) through constitutional provisions or by
enabling legislation.
Committed – amounts constrained to specific purposes by a government itself, using the
highest level of decision-making authority; to be reported as committed, amounts cannot
be used for any other purpose unless the government takes the same highest level action
to remove or change the constraint.
Assigned – amounts a government intends to use for a specific purpose; intent can be
expressed by the governing body or by an official or body to which the governing body
delegates the authority.
Unassigned – amounts that are for any purpose; positive amounts are reported only in a
general fund.
The City Council establishes (and modifies or rescinds) fund balance commitments by
passage of a resolution. The Council may also direct City officials to determine assignments of
fund balance. When both restricted and unrestricted resources are available for use, restricted
resources will be applied first, followed by (in order of application) committed, assigned, and
unassigned resources.
o. Net Assets
Net assets are the excess of assets over liabilities, as reported in the government-wide and
proprietary financial statements. Net assets are classified into three categories as follows:
Invested in Capital Assets, Net of Related Debt – this component of net assets consists of
capital assets, net of accumulated depreciation and reduced by any debt outstanding
against the acquisition, construction or improvement of those assets.
Restricted – this component of net assets consists of constraints placed on net assets
through external constraints imposed by creditors, grantors, contributors, or laws or
regulations of other governments or constraints imposed by law through constitutional
provisions or enabling legislation.
Unrestricted – this component of net assets consists of net assets that do not meet the
definition of restricted or invested in capital assets, net of related debt.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-59-
1. Summary of Significant Accounting Policies (continued)
p. Property Taxes
Property tax revenue is recognized in the fiscal year for which the taxes have been levied
providing they become available. Available means due, or past due and receivable within the
current period and collected within the current period or expected to be collected soon enough
thereafter (not to exceed 60 days) to be used to pay liabilities in the current period.
Under California law, property taxes are assessed and collected by the counties at up to 1% of
assessed value, plus other increases approved by the voters. The County of San Bernardino,
bills and collects the property taxes and remits them to the City at various times throughout the
year. Property taxes are attached as an enforceable lien on property as of March 1. Taxes are
levied on July 1 and are due in two installments. The first installment is due on November 1,
and is payable through December 10 without penalty. The second installment is due
February 1, and is payable through April 10 without penalty.
q. Capital Contributions
Contributions in aid of construction represent cash and utility plant additions contributed to the
City by property owners or developers desiring services that require capital expenditures or
capacity commitment.
r. Comparative Data
Comparative total data for the prior year have been presented in the accompanying basic
financial statements in order to provide an understanding of changes in the City's financial
position and operations. However, comparative (i.e., presentation of prior year totals by fund
type) data have not been presented in each of the statements since their inclusion would make
the statements unduly complex and difficult to read. Certain reclassifications of prior year data
have been made in order to enhance their comparability with current year amounts.
The prior year financial statements reported an Agency Fund titled “Payroll Trust Fund”, the
purpose of which was described as being used for the disposition of funds charged to
departments for the payment of wages, related withholdings and retirement benefits. This fund
was treated as a Payroll Clearing Fund and was used for administrative and accounting
purposes only, and, therefore, has more appropriately been internally combined with the
general fund in the City’s financial reporting framework, and all balances included in the
General Fund as reported in the accompanying financial statements.
s. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and
expenditures/expenses during the reporting period. Actual results could differ from those
estimates.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-60-
2. Bankruptcy
Events Giving Rise to the Petition for Bankruptcy
At the end of fiscal year ended June 30, 2012, the City’s Finance Department completed a budget
report in which it was determined that the City faced a projected budget deficit of over $45.8
million in the 2012-13 fiscal year and the budget deficit was projected to grow even larger for each
of the following five years. The City prepared a staff report in July, 2012, which determined that (i)
it was unlikely that at that time the City could meet its payroll and other financial obligations in the
next thirty (30) to sixty (60) days (including debt obligations and lease payments for critical City
assets), (ii) an unusually large number of employees were retiring and leaving the City triggering
immediate cash-outs of accrued vacation and sick leave benefits, (iii) the City’s credit line had
been terminated, (iv) vendors were demanding cash up front before providing essential materials,
goods and services to the City, (v) the City had no ability to access short-term credit markets to
solve its cash flow problems and had no General Fund reserves, and (vi) cash flow projections
showed that the City had projected monthly General Fund deficits ranging between $2 million and
$5.6 million from July through September.
On July 18, 2012, the Mayor and Common Council declared a fiscal emergency, as the Common
Council found that the City was unable to pay its obligations within the next sixty (60) days, nor
would it meet its next payroll. The Mayor, Common Council, and City staff began exploring
financial alternatives in response to its situation, including the option of bankruptcy.
As an initial step in developing a budget for operating in bankruptcy, the City did not make (i) debt
payments on debt obligations due, including a payment for pension bond debt, (ii) bi-monthly
payments to fund retiree health obligations, (iii) equipment purchases and payments on capital
projects, (iv) semi-monthly payments on the General Fund employer contribution to the California
Public Employee Retirement System (“CalPERS”) pension plan (the City continued withholding
semi-monthly payments to CalPERS through June 30, 2013), and (v) payments on trade payables
or payments under certain settlement agreements.
The City’s Chapter 9 Bankruptcy Filing
In response to on-going fiscal challenges, on August 1, 2012 (“Petition Date”) the City commenced
a bankruptcy case under Chapter 9 of the Bankruptcy Code (the “Bankruptcy Case”) by filing of a
voluntary petition for relief in the United States Bankruptcy Court for the Central District of
California (Riverside Division) (the “Bankruptcy Court”) on an emergency basis.
The Bankruptcy Court’s Determination that the City is Eligible for Chapter 9 Relief
In the first few weeks of the Bankruptcy Case, the City filed a motion requesting that the Court set
a deadline to file objections to the City’s eligibility for Chapter 9 relief. On August 24, 2012, the
Court entered its “Order Directing And Approving Form Of Notice And Setting Deadline For Filing
Objections To The City Of San Bernardino, California’s Petition” which established the deadline to
file and serve all objections to eligibility as October 24, 2012.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-61-
2. Bankruptcy (continued)
The Bankruptcy Court’s Determination that the City is Eligible for Chapter 9 Relief (continued)
On August 28, 2013, the Bankruptcy Court found that the City was authorized under California law
to be a Chapter 9 debtor because the City was insolvent, the City had filed its bankruptcy case in
good faith and with the desire to effect a plan of adjustment of debts, and, under the
circumstances, it was impracticable for the City to have conducted pre-bankruptcy negotiations
with its creditors.
CalPERS appealed the finding of eligibility, and CalPERS’ opening brief to the appellate court is
currently due on July 19, 2014.
Approval and Implementation of the City’s Pendency Plan
The City promptly prepared its Pre-Pendency Plan. On August 30, 2012, a budget for fiscal year
2012-2013 was presented to the City’s Common Council to remain effective until a Pendency Plan
was finalized and approved. During the preparation of the Pre-Pendency Plan, the City deferred
payment of certain obligations in order to curtail the increasing deficit in the General Fund and the
City’s dire liquidity crisis. These deferred payments included General Fund employer pension
contribution payments to CalPERS, bond debt, and certain trade debt. On November 26, 2012,
the Common Council adopted a Pendency Plan which incorporated the Pre-Pendency Plan. On
April 22, 2013, the City adopted its budget for fiscal years 2012-13 and 2013-14, which was based
on the Pendency Plan noted above.
Chapter 9 Labor Negotiations
Following the Petition Date, the City’s labor negotiating team began discussions with all seven of
the City’s bargaining units. The City reached agreements with five of its seven bargaining units on
modifications to the terms and conditions of employment, and those modifications took effect on
February 1, 2013. Unable to reach agreements with its two other bargaining units on the
modifications, the Common Council voted on January 28, 2013 to impose modifications to the
terms and conditions of employment on these units. In February and March 2013, in response to
the City’s actions, the two bargaining groups representing fire safety and police safety filed
motions for relief from the stay to exercise remedies to challenge the City’s unilateral
modifications. The City filed a motion to reject its collective bargaining agreements with those two
unions. These matters were postponed, and the last status conference on the motions was held
on May 8, 2014 with a further status conference set for June 19, 2014.
Deferral of CalPERS Payments
The City deferred certain payments, including the City’s general fund employer portion of
retirement contributions to CalPERS. CalPERS sought relief from the stay in order to commence a
state court action against the City to attempt to recoup the deferred payments, and to compel the
payment of future pension contributions from the City. The Bankruptcy Court denied CalPERS’
motion for relief from the automatic stay. Beginning in July 2013, the City resumed payments of
the City’s employer portion of retirement contributions to CalPERS.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-62-
2. Bankruptcy (continued)
The City’s Debt Obligations and Creditor Claims
The Bankruptcy Court established February 7, 2014 as the deadline for all creditors other than
governmental units and certain employees and retirees to file proofs of claims, and March 21,
2014 as the deadline for governmental units to file proofs of claims. The City’s proposed plan of
adjustment will address claims timely filed against the City and the City’s outstanding obligations.
In addition, the City continues to make regular payments on financing obligations secured by
dedicated special use restricted resources outside the General Fund, such as sewer improvement
and infrastructure obligations or lease payments secured by restricted “special revenues,” from
those restricted sources.
Impact of the Bankruptcy Case on the City’s Ability to Provide Services
The City continues to provide essential services to its residents and is committed to continuing to
provide such services throughout the Bankruptcy Case. The goal for the Chapter 9 process is to
allow the City the time it needs to correct its structural budget imbalance and cash flow problems
and set it on a sound financial course moving forward.
Mediation Respecting the Terms of a Chapter 9 Plan of Adjustment and Further Status
Conference
In October 2013, the Bankruptcy Court appointed a bankruptcy judge as case and plan mediator,
and ordered the City, CalPERS, and the other principal creditors into confidential mediation over
the terms of a Chapter 9 plan of adjustment The Bankruptcy Court has put on hold related
litigation in the Chapter 9 case to give the mediation a chance to succeed. The City, CalPERS, the
City’s bondholders, the labor unions, and a committee of retirees have participated in several
mediation sessions, the purpose of which is to attempt to negotiate a consensual Chapter 9 plan
of adjustment. Additional mediation sessions are anticipated to be scheduled and held. The
Bankruptcy Court has set a further status conference for June 19, 2014.
Although the outcome of CalPERS’ appeal of the City’s eligibility for Chapter 9 relief and any
challenges the City may receive to a plan of adjustment are uncertain, the City is working toward a
consensual plan of adjustment with its creditors. If a consensual plan cannot be achieved, then the
City will seek to have the Bankruptcy Court confirm the City’s plan of adjustment over potential
objections from creditors.
Until a plan of adjustment is filed with the Bankruptcy Court, no terms of adjustment can be
disclosed. Currently, the City is unable to provide an estimate of the gain, if any, resulting from the
re-measuring of liabilities, nor can an estimate be provided of when the plan of adjustment will be
completed.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-63-
3. Cash and Investments
Cash and investments are presented in the accompanying financial statements at June 30, 2012
as follows:
Statement of net assets:
Cash and investments88,636,143$
Statement of fiduciary net assets:
Cash and investments - Redevelopment Obligation
Retirement Fund34,506,252
Cash and investments - Agency Funds2,629,936
Total cash and investments125,772,331
Statement of net assets:
Cash and investments with fiscal agents36,860
Statement of fiduciary net assets:
Cash and investments with fiscal agents - Redevelopment
Obligation Retirement Fund36,912,220
Total cash and investments with fiscal agents36,949,080
Total162,721,411$
Cash and investments at June 30, 2012 consisted of the following:
Cash on hand13,450$
Demand deposits4,728,162
Investments157,979,799
Total cash and investments162,721,411$
As part of the City's investment guidelines, the City continually seeks ways to increase
investment income while not risking investment principal. One way the City accomplishes this is
by “sweeping”, on a nightly basis, any excess cash held in its non-interest bearing checking
account to an interest bearing money market account with the same bank. This “sweeping” of
excess funds from the non-interest bearing accounts may result in a negative balance due to
outstanding checks.
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California
Government Code and the City's investment policy. The table also identifies certain provisions
of the California Government Code (or the City's investment policy, if more restrictive) that
address interest rate risk, credit risk, and concentration of credit risk. This table does not
address investments of debt proceeds held by bond trustee’s that are governed by the
provisions of debt agreements of the City, rather than the general provisions of the California
Government Code or the City's investment policy.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-64-
3. Cash and Investments (continued)
Investments Authorized by the California Government Code and the City’s Investment Policy
(continued)
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Types Maturity* of Portfolio* in One Issuer*
United States Treasury Obligations 5 years None None
United States Federal Agency Securities 5 years None None
Bonds, Notes or Registered Warrants
Issued by the State of California or Local
Agencies within the State of California 5 years None None
Bankers’ Acceptances 180 days 40% 30%
Commercial Paper 270 days 25% 15%
Negotiable Certificates of Deposit 5 years 30% None
Time Certificates of Deposit N/A 25% None
Medium-term Corporate Notes 5 years 30% 15%
Money Market Mutual Funds N/A 20% 10%
Mortgage Pass-through Securities 5 years 20% None
Local Agency Investment Fund (LAIF) N/A None None
* Based on state law requirements or City investment policy requirements, whichever is more
restrictive.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by fiscal agent’s are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the City’s
investment policy. The table below identifies the investment types that are authorized for
investments held by fiscal agents. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Maximum Percentage Investment
Authorized Investment Types Maturity Allowed in One Issuer
United States Treasury Obligations None None N/A
United States Federal Agency Securities None None None
Bonds, Notes or Registered Warrants
Issued by the State of California or Local
Agencies within the State of California None None None
Bankers’ Acceptances 180 - 360 days None None
Commercial Paper 92 - 180 days None None
Medium-term Corporate Notes None None None
Money Market Mutual Funds N/A None None
Investment Contracts None None None
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-65-
3. Cash and Investments (continued)
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest will adversely affect the fair value of an
investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair
value to changes in market interest rates. One of the ways that the City manages its exposure to
interest rate risk is by purchasing a combination of shorter term and longer term investments and
by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for
operations.
Information about the sensitivity of the fair values of the City’s investments (including investments
held by bond trustee) to market interest rate fluctuations is provided by the following table that
shows the distribution of the City’s investments by maturity. For purposes of the schedule shown
below, any callable securities are assumed to be held to maturity.
Remaining Maturity
12 Months13 to 2425 Months
Investment TypeTotalor LessMonthsor More
Local Agency Investment Fund
(State Investment Pool)36,768,093$ 36,768,093$ -$ -$
Money Market Mutual Funds4,248,473 4,248,473 - -
Certificates of Deposit998,872 - 998,872 -
Negotiable Certificates of
Deposit497,721 - 497,721 -
Federal Agency Securities54,469,084 6,636,355 11,452,989 36,379,740
U.S. Treasury Securities12,561,601 2,959,568 1,139,270 8,462,763
Medium-term Corporate Notes7,925,974 1,830,458 2,389,054 3,706,462
Held by Bond Trustee:
Money Market Funds34,797,080 34,797,080 - -
U.S. Treasury Securities1,005,000 1,005,000 - -
Mutual Funds87,151 87,151 - -
Investment Contracts4,620,750 - - 4,620,750
Total157,979,799$ 88,332,178$ 16,477,906$ 53,169,715$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-66-
3. Cash and Investments (continued)
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. Presented below is the minimum rating required by
(where applicable) the California Government Code, the City’s investment policy, or debt
agreements, and the actual rating as of year-end for each investment type.
MinimumRatings
Legalat Year EndNot
Investment TypeTotalRatingAA or AAARated
Local Agency Investment Fund
(State Investment Pool)36,768,093$ N/A-$ 36,768,093$
Money Market Mutual Funds4,248,473 N/A- 4,248,473
Certificates of Deposit998,872 N/A- 998,872
Negotiable Certificates of Deposit497,721 N/A- 497,721
Federal Agency Securities54,469,084 AA54,469,084 -
U.S. Treasury Securities12,561,601 N/A12,561,601 -
Medium-term Corporate Notes7,925,974 AA7,925,974 -
Held by Bond Trustee:
Money Market Funds34,797,080 N/A- 34,797,080
U.S. Treasury Securities1,005,000 N/A1,005,000 -
Mutual Funds87,151 N/A- 87,151
Investment Contracts4,620,750 N/A- 4,620,750
Total157,979,799$ 75,961,659$ 82,018,140$
Concentration of Credit Risk
The investment policy of the City contains no limitations on the amount that can be invested in any
one issuer beyond that stipulated by the California Government Code. Investments in any one
issuer (other than U.S. Treasury securities, money market mutual funds, and external investment
pools) that represent 5% or more of total City investments are as follows:
ReportedPercentage of
IssuerInvestment TypeAmountPortfolio
Federal Home Loan BankFederal Agency Security16,600,949$ 11%
Federal Home Loan Mortgage Corp.Federal Agency Security9,241,751 6%
Federal National Mortgage AssociationFederal Agency Security19,253,073 12%
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-67-
3. Cash and Investments (continued)
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial
institution, a government will not be able to recover its deposits or will not be able to recover
collateral securities that are in the possession of an outside party. The custodial credit risk for
investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to
a transaction, a government will not be able to recover the value of its investment or collateral
securities that are in the possession of another party. The California Government Code and the
City’s investment policy do not contain legal or policy requirements that would limit the exposure
to custodial credit risk for deposits or investments, other than the following provision for
deposits: The California Government Code requires that a financial institution secure deposits
made by state or local governmental units by pledging securities in an undivided collateral pool
held by a depository regulated under state law (unless so waived by the governmental unit). The
market value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to
secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the
secured public deposits. At June 30, 2012, the City’s deposits (bank balances) were
collateralized under California Law.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated
by California Government Code Section 16429 under the oversight of the Treasurer of the State of
California. The fair value of the City's investment in this pool is reported in the accompanying
financial statements at amounts based upon the City’s pro-rata share of the fair value provided by
LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance
available for withdrawal is based on the accounting records maintained by LAIF, which are
recorded on an amortized cost basis.
4. Notes Receivable
Notes receivable represent loan agreements entered into between the EDA and unrelated non-
governmental entities as part of the EDA’s redevelopment activities, including single-family
home buyer assistance, and real estate development and construction loans. Approximately 155
notes are reported in the Federal and State Grants Fund (a nonmajor special revenue fund)
ranging in amount from approximately $25,000 to $3.5 million, and totaling $8.8 million. The Low
and Moderate Income Housing Fund (a nonmajor special revenue fund) includes approximately
40 notes ranging in amount from approximately $8,000 to $7 million, and totaling $38.7 million.
Collection of these notes receivable is subject to the terms of each individual loan agreement.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-68-
5. Interfund Receivables, Payables and Transfers
Due To / From Other Funds
Amounts due to and due from other funds at June 30, 2012 are summarized as follows:
Due From Other Funds (asset):
Low and
ModerateIntegrated
NonmajorIncomeWasteWaterSewerInternal
GovernmentalHousingEnterpriseEnterpriseEnterpriseService
FundsFundFundFund FundFundsTotal
Due To Other
Funds (liability):
General Fund15,345,420$ -$ -$ -$ -$ -$ 15,345,420$
Federal and State
Grants Fund1,841,588 - - - - 2,713,916 4,555,504
Nonmajor Govern-
mental Funds2,389,027 155,500 - - - - 2,544,527
Integrated Waste
Enterprise Fund- - - 409,218 850,894 - 1,260,112
Water Enterprise
Fund- - 2,042,095 - - - 2,042,095
Sewer Enterprise
Fund- - 222,894 112,259 - - 335,153
Internal Service
Funds1,319,100 - - 277,600 - - 1,596,700
Total20,895,135$ 155,500$ 2,264,989$ 799,077$ 850,894$ 2,713,916$ 27,679,511$
Amounts due to and due from other funds reflect (a) Monies owed to the Integrated Waste
Enterprise (IWE) fund from Water Enterprise and Sewer Enterprise funds for monies for services
collected by the Water Department on behalf of the IWE fund; and (b) inter-fund borrowings to
cover short-term operating deficits and cash overdrafts.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-69-
5. Interfund Receivables, Payables and Transfers (continued)
Advances To / From Other Funds
Advance to and advances from other funds at June 30, 2012, are summarized as follows:
Advances To Other Funds (asset):
Low and
ModerateNonmajor
IncomeGovernmental
Housing FundFundsTotal
Advances From Other
Funds (liability):
General Fund-$ 1,629,400$ 1,629,400$
Federal and State Grants Fund9,347,332 - 9,347,332
Nonmajor Governmental Funds- 158,000 158,000
Internal Service Funds- 49,774 49,774
Total9,347,332$ 1,837,174$ 11,184,506$
The interfund advances above resulted from (1) a General Fund budget shortfall of $1,629,400
covered by a short term loan from the City’s impact fees fund, (2) loans to fund infrastructure and
other capital improvements.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-70-
5. Interfund Receivables, Payables and Transfers (continued)
Transfers
Interfund transfers during the year ended June 30, 2012 consisted of the following:
Transfers out:
EconomicEconomic
DevelopmentDevelopment
AgencyAgency
SpecialCapitalNonmajorInternal
GeneralRevenueProjectsGovernmentalService
FundFundFundFundsFundsTotal
Transfers in:
General Fund-$ -$ 625,750$ 9,268,762$ 2,009,774$ 11,904,286$
Economic
Development
Agency Special
Revenue Fund - - 4,410,862 - - 4,410,862
Economic
Development
Agency Debt
Service Fund 1,611,512 687,535 7,596,219 - - 9,895,266
Federal and State
Grants Fund578,698 7,305,200 - - - 7,883,898
Nonmajor Govern-
mental Funds4,344,836 - - - - 4,344,836
Integrated Waste
Fund65,000 - - - - 65,000
Total6,600,046$ 7,992,735$ 12,632,831$ 9,268,762$ 2,009,774$ 38,504,148$
Interfund transfers were principally used to fund (a) operating deficits in non-major funds, (b) debt
service payments, and (c) reimbursement of costs of the general fund related to accomplishing
activities of other funds.
6. Property Held for Resale
Property held for resale represents single-family, multi-family, commercial, and retail real estate
acquired by the EDA under its low and moderate income housing activities and the City’s federal
grant programs. Approximately 60 properties are reported in the Federal and State Grants Fund
(a nonmajor special revenue fund) ranging in amount from approximately $78,000 to $640,000,
and totaling $16.3 million. The Low and Moderate Income Housing Fund (a nonmajor special
revenue fund) includes approximately 30 properties ranging in amount from approximately
$5,000 to $11.8 million, and totaling $18.4 million. The properties are reported at cost basis.
These costs will be charged to current year project expenditures when the related properties are
sold or disposed.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-71-
7. Capital Assets
Capital asset activity for governmental activities for the year ended June 30, 2012, was as follows:
Transfers to
BeginningReclass-SuccessorEnding
balanceAdditionsDeletionsificationsAgencybalance
Governmental activities:
Capital assets, not being
depreciated:
Land (1)125,475,931$ -$ -$ -$ (11,631,572)$ 113,844,359$
Construction in progress (2)22,607,288 5,259,176 (17,411,033) - - 10,455,431
Total capital assets, not
being depreciated148,083,219 5,259,176 (17,411,033) - (11,631,572) 124,299,790
Capital assets, being
depreciated:
Infrastructure531,619,693 14,503,740 (25,512) - - 546,097,921
Buildings and
improvements85,138,141 1,025,240 - 4,608,946 (16,508,665) 74,263,662
Machinery, vehicles
and equipment59,858,218 1,736,886 (684,392) (4,608,946) (1,282,198) 55,019,568
Total capital assets,
being depreciated676,616,052 17,265,866 (709,904) - (17,790,863) 675,381,151
Less accumulated
depreciation for:
Infrastructure(262,647,499) (14,271,847) 25,512 - - (276,893,834)
Buildings and
improvements(60,199,399) (1,708,899) - (3,085,155) 7,941,664 (57,051,789)
Machinery, vehicles
and equipment(46,793,014) (3,516,822) 684,392 3,085,155 1,025,251 (45,515,038)
Total accumulated
depreciation(369,639,912) (19,497,568) 709,904 - 8,966,915 (379,460,661)
Total capital assets,
being depreciated net306,976,140 (2,231,702) - - (8,823,948) 295,920,490
Intangible assets5,946,327 - - - - 5,946,327
Less accum. amortization(247,763) (594,633) - - - (842,396)
Total intangible assets, net5,698,564 (594,633) - - - 5,103,931
Governmental activities
capital assets, net460,757,923$ 2,432,841$ (17,411,033)$ -$ (20,455,520)$ 425,324,211$
(1) The land balance reflected above includes various parcels that include certain restrictions that
may impact the subsequent sale of those parcels.
(2) Current year deletions of construction in progress include $1,901,829 of prior year project
costs that no longer meet the criteria for capitalization.
Capital assets of the former redevelopment agency (Economic Development Agency or “EDA”)
were transferred to the Successor Agency upon dissolution at February 1, 2012. Capital asset
activities for the seven months ended January 31, 2012 are included in the governmental activities
of the City.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-72-
7. Capital Assets (continued)
Certain reclassifications between capital asset classes in the governmental activities were made
to ensure consistency with the City’s classifications and capital asset subsidiary schedules. There
were no changes to carrying amounts or depreciation lives, and there was no effect on the City’s
changes in net assets.
Capital asset activity for business-type activities for the year ended June 30, 2012, was as follows:
BeginningEnding
balanceAdditionsDeletionsAdjustmentsbalance
Business-type activities:
Capital assets, not being
depreciated:
Land and easements15,459,919$ -$ -$ -$ 15,459,919$
Construction in progress12,498,216 9,052,195 (11,933,044) - 9,617,367
Total capital assets, not
being depreciated27,958,135 9,052,195 (11,933,044) - 25,077,286
Capital assets, being
depreciated:
Water rights, wells
and pumping83,225,598 2,919,221 (11,062) - 86,133,757
Distribution systems117,057,748 3,989,998 (401,611) - 120,646,135
Building, plant, and
store yards157,307,070 4,847,862 - - 162,154,932
Other assets45,237,805 2,693,211 (2,736,759) - 45,194,257
Total capital assets,
being depreciated402,828,221 14,450,292 (3,149,432) - 414,129,081
Less accumulated
depreciation for:
Water rights, wells
and pumping(29,994,658) (2,351,987) 10,621 2,156,538 (30,179,486)
Distribution systems(28,812,112) (2,429,340) 323,057 2,024,342 (28,894,053)
Building, plant, and
store yards(89,126,236) (4,556,075) - (2,586,336) (96,268,647)
Other assets(27,289,849) (4,031,262) 2,585,479 74,882 (28,660,750)
Total accumulated
depreciation(175,222,855) (13,368,664) 2,919,157 1,669,426 (184,002,936)
Total capital assets,
being depreciated, net227,605,366 1,081,628 (230,275) 1,669,426 230,126,145
Business-type activities
capital assets, net255,563,501$ 10,133,823$ (12,163,319)$ 1,669,426$ 255,203,431$
There were adjustments made to beginning accumulated depreciation to account for errors noted
in the calculation of depreciation subsequent to the issuing of the June 30, 2011 financial
statements of $4,140,116 and $(2,470,690) to the water and sewer enterprise funds, respectively,
for a net adjustment to the business-type activities of $1,669,426.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-73-
7. Capital Assets (continued)
Depreciation expense was charged to the following functions in the Statement of Activities:
GovernmentalBusiness-type
activitiesactivities
Function:
General government234,909$ -$
Public safety1,935,379 -
Streets14,897,503 -
Culture and recreation520,194 -
Economic development351,548 -
Community services255,850 -
Integrated waste enterprise fund- 2,952,864
Water enterprise fund- 5,770,673
Sewer enterprise fund- 4,645,127
Capital assets held by the government's internal
service funds are charged to the various
functions based on their usage of the assets1,302,185 -
Total depreciation expense19,497,568$ 13,368,664$
8. Long-Term Liabilities – Governmental Activities
Changes in the long-term liabilities of the governmental activities for the year ended June 30, 2012
were as follows:
Transfer to
Successor Amount
Balance Agency on BalanceDue Within
June 30, 2011AdditionsReductionsFeb. 1, 2012June 30, 2012One Year
Governmental activities:
Capital leases payable 3,685,809$ -$ (1,101,075)$ -$ 2,584,734$ 739,557$
Claims and judgments
(Note 13)20,142,019 5,630,933 (4,850,980) - 20,921,972 6,276,592
Compensated absences
(Note 12)20,287,987 217,671 (818,981) (423,405) 19,263,272 8,114,405
OPEB obligation (Note 17)20,732,739 5,217,893 - (882,031) 25,068,601 -
Participation agreement:
Yellow Freight 277,688 - - (277,688) - -
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-74-
8. Long-Term Liabilities – Governmental Activities (continued)
Transfer to
Successor Amount
Balance Agency on BalanceDue Within
June 30, 2011AdditionsReductionsFeb. 1, 2012June 30, 2012One Year
Governmental activities
(continued):
Notes payable:
HUD Section 108:
Cinema project3,860,000$ -$ (410,000)$ (3,450,000)$ -$ -$
Arden Guthrie7,500,000 - - (7,500,000) - -
Reynolds506,637 - - (506,637) - -
Fire maintenance
facility note1,200,000 - - - 1,200,000 -
CMB note payable15,000,000 18,000,000 - (33,000,000) - -
New World note payable5,131,987 - (583,202) - 4,548,785 513,540
Total notes payable33,198,624 18,000,000 (993,202) (44,456,637) 5,748,785 513,540
Lease revenue bonds:
Public Facilities Lease
(Lease Revenues
Refunding 1997,
Series A)2,570,000 - (815,000) - 1,755,000 855,000
City Hall Lease (Refunding
Bonds, Series 1996)8,575,000 - (520,000) - 8,055,000 550,000
Total lease revenue
bonds11,145,000 - (1,335,000) - 9,810,000 1,405,000
California Infrastructure
Bank:
Fire station lease2,153,425 - (86,396) - 2,067,029 88,919
Street construction5,814,565 - (1,109,082) - 4,705,483 1,135,367
Harriman Place Street
Extension Lease 1,338,015 - (105,493) - 1,232,522 108,458
Total California
Infrastructure Bank9,306,005 - (1,300,971) - 8,005,034 1,332,744
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-75-
8. Long-Term Liabilities – Governmental Activities (continued)
Transfer to
Successor Amount
Balance Agency on BalanceDue Within
June 30, 2011AdditionsReductionsFeb. 1, 2012June 30, 2012One Year
Governmental activities
(continued):
Tax allocation bonds:
Bonds 2010A6,505,000$ -$ -$ (6,505,000)$ -$ -$
Bonds 2010B3,075,000 - - (3,075,000) - -
Refunding Bonds, 2002A22,330,000 - - (22,330,000) - -
Bonds 20023,095,000 - (75,000) (3,020,000) - -
Refunding Bonds, 1998A10,880,000 - (855,000) (10,025,000) - -
Refunding Bonds, 1998B5,320,000 - (355,000) (4,965,000) - -
Refunding Bonds, 2005A45,110,000 - (2,500,000) (42,610,000) - -
Refunding Bonds, 2005B16,980,000 - (965,000) (16,015,000) - -
Taxable 200623,035,000 - - (23,035,000) - -
Less: deferred charges(1,659,462) - 72,057 1,587,405 - -
Total tax allocation
bonds134,670,538 - (4,677,943) (129,992,595) - -
Assessment District bonds:
Assessment District
No. 98750,000 - (50,000) - - -
Certificates of Participation:
1999 Certificates of
participation 10,940,000 - (540,000) (5,880,000) 4,520,000 250,000
Pension obligation bonds
payable:
Taxable Pension Obligation
Bonds, 2005 Series A 47,075,251 - (934,391) - 46,140,860 916,280
Total governmental
activities long-term
liabilities $ 311,511,660 $ 29,066,497 $ (16,602,543) $ (181,912,356) $ 142,063,258 $ 19,548,118
Internal service funds predominantly serve the governmental funds. Accordingly, long-term
liabilities for internal service funds are included as part of the above totals for governmental
activities. At June 30, 2012, $635,198 of capital leases payable, $20,921,972 of claims and
judgments, $888,272 of compensated absences, and $4,548,785 of notes payable (New World)
for internal service funds are included in the above amounts for governmental activities. For
governmental activities, compensated absences and other post-employment benefit obligations
(OPEB) are generally liquidated by the General Fund.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-76-
8. Long-Term Liabilities – Governmental Activities (continued)
A. Capital Leases Payable
Amount
Outstanding at
June 30, 2012
The City has entered into several lease agreements for the financing of
fire vehicles and equipment, air conditioners, and police vehicles. These
lease agreements qualify as capital leases for accounting purposes and,
therefore, have been recorded at the present value of future minimum
lease payments as of the date of inception. $ 2,584,734
Assets acquired through capital leases are as follows:
Amount
Machinery, vehicles and equipment5,347,420$
Less: accumulated depreciation(3,018,059)
Total 2,329,361$
The following schedule summarizes the debt to maturity payments for capital leases:
Year ending
June 30,PrincipalInterestTotal
2013739,557$ 94,939$ 834,496$
2014625,124 67,514 692,638
2015622,010 43,920 665,930
2016309,686 21,578 331,264
2017121,229 11,542 132,771
2018 - 2019167,128 9,890 177,018
Totals2,584,734$ 249,383$ 2,834,117$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-77-
8. Long-Term Liabilities – Governmental Activities (continued)
B. Notes Payable
Amount
Outstanding at
June 30, 2012
Fire Maintenance Facility Note
On August 1, 2009, the City entered into a note agreement with a property
owner for the purchase of land to be used for the City’s Fire Department
Maintenance Facility. The note is for the amount of $1,200,000 with a maturity
date of July 1, 2019 and bears interest of 5.0% per annum. Due to the nature
of the terms of the note, an amortization schedule is not available.
$ 1,200,000
New World Note Payable
In 2011, the City entered into a subscription agreement for the acquisition of
computer software. The agreement has the substance of a note payable for
accounting purposes and has been recorded at the present value of the
annual payments of $645,000, calculated using a discount rate of 2.89%. The
final payment is due July 1, 2019. 4,548,785
Total notes payable $ 5,748,785
Future debt service requirements for notes payable outstanding as of June 30, 2012, are as
follows (due to the nature of the terms of the fire maintenance facility note does not have an
amortization schedule, and therefore no interest is scheduled):
Year ending
June 30,PrincipalInterestTotal
2013513,540$ 131,460$ 645,000$
2014528,381 116,619 645,000
2015543,652 101,348 645,000
2016559,363 85,637 645,000
2017575,529 69,471 645,000
2018 - 20203,028,320 106,680 3,135,000
Totals5,748,785$ 611,215$ 6,360,000$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-78-
8. Long-Term Liabilities – Governmental Activities (continued)
C. Lease Revenue Bonds
Amount
Outstanding at
June 30, 2012
Public Facilities Lease Revenue Refunding Bonds, 1997 Series A
$10,370,000 of Public Facilities Lease Revenue Refunding Bonds, issue of
1997, Series A, were issued for the purpose of refunding the EDA's Public
Facilities Lease Revenue Bonds, 1989 Series A, and to provide funds for
the construction and leasing of a fueling station. The bonds currently
outstanding consist of $4,790,000 of term bonds due September 1, 2013,
bearing interest at 5.0% per annum. Interest is payable semiannually on
March 1, and September 1. The term bonds shall be redeemed prior to
maturity beginning September 1, 2008 to September 1, 2013 from the
Term Bond Sinking Fund.
The bonds are subject to optional redemption before maturity from
available funds. Such bonds will be redeemed at the times and prices
(expressed as a percentage of the principal amount so redeemed) as set
forth in the bond documents. A reserve account is required to be
maintained in accordance with the bond documents. As of June 30, 2012
the reserve requirement was $945,000 and the amount actually held in the
reserve account was $945,196.
The bond payments were previously paid by the EDA and secured by and
payable from the lease revenue payments received by the EDA as lessor,
under lease agreements with the City of San Bernardino. Upon dissolution
of the EDA, the bonds became a liability of the City. $ 1,755,000
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-79-
8. Long-Term Liabilities – Governmental Activities (continued)
C. Lease Revenue Bonds (continued)
Amount
Outstanding at
June 30, 2012
Lease Revenue Refunding Bonds (City Hall Project), Series 1996
$16,320,000 of Lease Revenue Refunding Bonds (City Hall Project),
Series 1996, were issued to refund the Central City Project, $12,000,000
Certificates of Participation (Series 1992) and to finance the acquisition of
certain equipment and other capital improvements by the City. These
bonds consisted of: $4,235,000 of serial bonds with interest rates varying
from 4.15% to 5.00%; and $1,690,000 of term bonds bearing interest at
5.10%; $865,000 of term bonds, bearing interest of 5.30%; $3,215,000 of
term bonds, bearing interest at 5.60% and $6,315,000 of term bonds,
bearing interest at 5.70%. Interest is payable semiannually on January 1
and July 1. Remaining term bonds are due January 1, 2015 and January 1,
2023 and shall be called and redeemed before maturity from money
deposited into the Term Bond Sinking Fund.
The bonds are subject to optional redemption as a whole or in part at the
times and prices (expressed as a percentage of the principal amount so
redeemed) as set forth in the bond documents. A reserve account is
required to be maintained in accordance with the bond documents. As of
June 30, 2012 the reserve requirement was $1,008,190 and the amount
actually held in the reserve account was $1,051,460.
The bonds and the interest thereon were previously payable from, and
secured by a pledge of, lease payments to be paid by the City of San
Bernardino pursuant to a Lease Purchase Agreement between the EDA as
lessor and the City as lessee. In order for the City to secure its obligations
pursuant to the Lease Agreement, the City will grant to the EDA, which will
be assigned to First Trust of California National Association, as trustee, its
interest in the Lease Agreement, which includes its rights to acquire the
Leased Premises, upon payment of principal of and interest on the bonds.
Upon dissolution of the EDA, the bonds became a liability of the City. 8,055,000
Total lease revenue bonds $ 9,810,000
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-80-
8. Long-Term Liabilities – Governmental Activities (continued)
C. Lease Revenue Bonds (continued)
Future debt service requirements for lease revenue bonds outstanding as of June 30, 2012
are as follows:
Year ending
June 30,PrincipalInterestTotal
20131,405,000$ 538,330$ 1,943,330$
20141,480,000 464,495 1,944,495
2015610,000 410,355 1,020,355
2016645,000 377,035 1,022,035
2017685,000 341,573 1,026,573
2018 - 20224,035,000 1,095,255 5,130,255
2023950,000 106,875 1,056,875
Totals9,810,000$ 3,333,918$ 13,143,918$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-81-
8. Long-Term Liabilities – Governmental Activities (continued)
D. California Infrastructure Bank
Amount
Outstanding at
June 30, 2012
Fire Station Lease
On August 2, 2004, the California Infrastructure and Economic
Development Bank (CIEDB) and the City entered into a lease agreement
in regard to the purchase of a Fire Station. Subject to the provisions of the
lease, the City agrees to pay to the CIEDB as rental for use and
occupancy of the Fire Station lease payments on February 1 and August 1
of each year. $ 2,067,029
Harriman Place Street Extension Lease
On August 28, 2001, the California Infrastructure and Economic
Development Bank (CIEDB) and the City entered into a lease agreement
in regard to the Harriman Place Street Extension Project (Project). The
Project is located on real property owned by the City. Subject to the
provisions of the lease, the City agrees to pay to the CIEDB as rental for
use and occupancy of the Harriman Street Extension lease payments on
February 1 and August 1 of each year. 4,705,483
Street Construction
On September 27, 2005, the California Infrastructure and Economic
Development Bank (CIEDB) and the City entered into a financing
agreement for pavement reconstruction and 25.5 miles of pavement
rehabilitation projects on public streets throughout the City. The City
agrees to pay the CIEDB on August 1 and February 1, beginning in fiscal
year 2009. During the fiscal year ended June 30, 2012, the City had drawn
a total of $9,613,878 of the $10,000,000 available. 1,232,522
Total California Infrastructure Bank liabilities $ 8,005,034
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-82-
8. Long-Term Liabilities – Governmental Activities (continued)
D. California Infrastructure Bank (continued)
Future debt service requirements for California Infrastructure Bank liabilities outstanding as of
June 30, 2012, are as follows:
Year ending
June 30,PrincipalInterestTotal
20131,332,744$ 190,235$ 1,522,979$
20141,365,295 157,284 1,522,579
20151,398,648 123,522 1,522,170
20161,432,818 88,933 1,521,751
2017220,941 68,268 289,209
2018 - 20221,203,169 241,467 1,444,636
2023 - 2027628,524 108,681 737,205
2028 - 2030422,895 18,760 441,655
Totals8,005,034$ 997,150$ 9,002,184$
E. Assessment District Bonds
Assessment District No. 987 Bonds Payable
Assessment District No. 987 bonds, series 1991, were issued on December 2, 1991 in the
amount of $709,000. The bonds consisted of coupon bonds with interest ranging from 5.75%
to 7.30% per annum. Interest was payable semiannually on March 2 and September 2. Serial
Bonds matured annually on September 2 through September 2, 2011. The bonds were issued
to provide funds, acquire and construct the work and improvements authorized by the City in
the legal proceedings for Assessment District No. 987 located in the City and to pay the
authorized incidental expenses of the Assessment District Project and improvement bond
financing. The outstanding balance of the bonds was paid in full during the year ended
June 30, 2012.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-83-
8. Long-Term Liabilities – Governmental Activities (continued)
F. Certificates of Participation
1999 Certificates of Participation
On September 23, 1999, the San Bernardino Joint Powers Financing Authority issued
$15,480,000 of Refunding Certificates of Participation (Certificates). The Certificates were
issued to retire $2,325,000 outstanding of Refunding Certificates of Participation (South
Valle Public Improvement Project) dated April 1, 1987, and $5,910,000 outstanding of
Certificates of Participation (1995 Police Station Financing Project) dated April 1, 1995, and
to provide funds for capital improvements (201 Building Projects).
The Certificates mature on September 1 of each year through September 1, 2024, in
amounts ranging from $330,000 to $1,080,000. The interest represented by the Certificates
is calculated on the basis of a 360-day year of twelve 30-day months, from September 1,
1999, at the rates per annum set forth in the bond documents and will represent the sum of
the portions of the lease payments designated as interest coming due during the six months
preceding each interest payment date. The interest rates will range approximately from
3.70% to 5.50% per annum.
The Certificates maturing on September 1, 2020 are subject to mandatory sinking fund
redemption in part on September 1 in each year on or after September 1, 2010, from the
principal components of the lease payments required to be paid by the City pursuant to the
Lease Agreements with respect to each such redemption date, at a redemption price equal to
the principal amount thereof to be redeemed, together with interest accrued thereon to the
date fixed for redemption, without premium, in accordance with the terms identified in the bond
documents. The Certificates maturing on September 1, 2024 are subject to mandatory sinking
fund redemption in part on September 1, 2021, from the principal components of the lease
payments required to be paid by the City pursuant to the Lease Agreements with respect to
each such redemption date, at a redemption price equal to the principal amount thereof to be
redeemed, together with interest accrued thereon to the date fixed for redemption, without
premium, in accordance with the terms identified in the bond documents.
The Certificates represent direct, undivided fractional interest in lease payments to be made
by the City under the lease agreements. A reserve fund is required to be maintained in an
amount equal to the maximum annual debt service. At June 30, 2012, the reserve requirement
was $1,147,000 and the amount actually held in the reserve account was $1,147,000. The
total outstanding balance of the Certificates at June 30, 2012 was $10,400,000, of which
$4,520,000 is reported as a long-term liability of the City, which is the portion of the
Certificates that represent the Police Station portion. Repayment of this portion of the
Certificates is funded from the City’s general revenues under the terms of the lease
agreement.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-84-
8. Long-Term Liabilities – Governmental Activities (continued)
F. Certificates of Participation (continued)
Future debt service requirements for certificates of participation outstanding as of June 30,
2012 are as follows:
Year ending
June 30,PrincipalInterestTotal
2013250,000$ 572,000$ 822,000$
2014260,000 540,375 800,375
2015275,000 507,375 782,375
2016290,000 472,450 762,450
2017305,000 435,600 740,600
2018 - 20221,805,000 1,552,375 3,357,375
2023 - 20251,335,000 344,025 1,679,025
Totals4,520,000$ 4,424,200$ 8,944,200$
G. Pension Obligation Bonds
Taxable Pension Obligation Bonds, 2005 Series A
In October 2005, the City issued City of San Bernardino Taxable Pension Obligation Bonds,
2005 Series A, consisting of $36,050,000 principal amount of Taxable Pension Obligation
Bonds, Series A-1 (standard bonds) and $14,351,583 principal amount of Taxable Pension
Obligation Bonds, 2005 Series A-2 (capital appreciation bonds). The City issued the bonds in
order to prepay its unfunded accrued actuarial liability related to the City’s safety retirement
plan.
The standard bonds are dated October 1, 2005, with an interest rate of 5.628% per annum,
maturing annually commencing October 1, 2024 through October 1, 2035. Interest is due
annually commencing on October 1, 2006 through October 1, 2035. The capital appreciation
bonds are dated October 1, 2005, with interest rates varying from 4.993% to 5.877% per
annum, maturing annually commencing October 1, 2007 through October 1, 2024.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-85-
8. Long-Term Liabilities – Governmental Activities (continued)
G. Pension Obligation Bonds (continued)
Future debt service requirements for pension obligation bonds outstanding as of June 30,
2012 are as follows:
Year ending
June 30,PrincipalInterestTotal
2013916,280$ 2,422,615$ 3,338,895$
2014895,138 2,493,756 3,388,894
2015873,241 2,565,653 3,438,894
2016856,483 2,637,411 3,493,894
2017833,750 2,715,144 3,548,894
2018-20223,810,786 14,743,685 18,554,471
2023-20276,715,182 13,295,441 20,010,623
2028-203214,725,000 6,848,854 21,573,854
2033-203616,515,000 1,943,771 18,458,771
Totals46,140,860$ 49,666,330$ 95,807,190$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-86-
9. Long-Term Liabilities – Business-type Activities
Changes in the long-term liabilities of the business-type activities for the year ended June 30,
2012 were as follows:
Amount
BalanceBalanceDue Within
June 30, 2011AdditionsReductionsJune 30, 2012One Year
Business-type activities:
Capital leases payable 13,149,895$ -$ (2,869,838)$ 10,280,057$ 2,936,684$
Claims payable (Note 13)288,683 233,438 (97,680) 424,441 424,441
Compensated absences (Note 12)2,583,092 2,238,315 (2,317,376) 2,504,031 1,762,208
OPEB obligation (Note 17)6,530,000 2,510,000 (9,040,000) - -
Notes payable 24,439,995 10,000,000 (2,892,770) 31,547,225 2,993,835
Certificates of participation:
Refunding sewer revenues COPs 17,305,000 - (2,510,000) 14,795,000 2,650,000
Less: deferred charges (108,680) - 21,012 (87,668) (20,360)
Subtotal17,196,320 - (2,488,988) 14,707,332 2,629,640
Water bonds payable25,000 - (10,000) 15,000 15,000
Total business-type activities
long-term liabilities 64,212,985$ 14,981,753$ (19,716,652)$ 59,478,086$ 10,761,808$
A. Capital Leases Payable
These lease agreements qualify as capital leases for accounting purposes, and therefore,
have been recorded at the present value of the future minimum lease payments as of the date
of inception.
Amount
Outstanding at
June 30, 2012
Integrated Waste equipment
The City entered into several lease purchase agreements for the financing
of the acquisition of refuse trucks and street sweepers. The terms of
leases are 84 months each, with individual semi-annual payments ranging
from $59,370 to $384,437. These lease agreements qualify as capital
leases for accounting purposes and, therefore, have been recorded at the
present value of future minimum lease payments as of the date of
inception. $ 10,280,057
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-87-
9. Long-Term Liabilities – Business-type Activities (continued)
A. Capital Leases Payable (continued)
Assets acquired through capital leases are as follows:
Amount
Machinery, vehicles and equipment19,972,082$
Less: accumulated depreciation(10,509,111)
Total 9,462,971$
The following schedule summarizes the debt to maturity payments for capital leases:
Year ending
June 30,PrincipalInterestTotal
20132,936,684$ 328,011$ 3,264,695$
20142,550,418 225,007 2,775,425
20152,140,362 145,780 2,286,142
20161,438,444 78,821 1,517,265
2017889,210 32,560 921,770
2018324,939 7,060 331,999
Totals10,280,057$ 817,239$ 11,097,296$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-88-
9. Long-Term Liabilities – Business-type Activities (continued)
B. Notes Payable
Amount
Outstanding at
June 30, 2012
California Infrastructure and Economic Development Bank (CIEDB)
In April 2002, CIEDB issued a $10,000,000 note to the City Water Department
to provide funding for transmission mains, booster stations and a reservoir
identified in the Water System Reliability Schedule of Improvements. The note
was issued with an interest rate of 3.34% per annum with interest payable
semiannually on February 1 and August 1. Principal payments are due
annually on February 1. $ 6,272,528
In July 2007, CIEDB issued a $10,000,000 note to the City Water Department
to provide funding for booster stations and transmission mains in the
Verdemont area. The note was issued with an interest rate of 2.71% per
annum with interest payable semiannually on February 1 and August 1.
Principal payments are due annually on August 1. 8,281,073
In May 2012, CIEDB issued a $10,000,000 note to the City Water Department
to provide funding for the construction of the 12 million gallon Ogden Reservoir
and certain pipeline improvements. The note was issued with an interest rate
of 2.61% per annum with interest payable semiannually on February 1 and
August 1. Principal payments are due annually on August 1. 10,000,000
San Bernardino Valley Municipal Water District (SBVMWD) SARI Line Rights
The City Water Department entered into an agreement with the SBVMWD for
the purchase of 2.5 million gallons per day of discharge rights in the Santa
Ana Regional Interceptor (SARI) pipeline (now called the Inland Empire Brine
Line). SBVMWD issued a note to the City Water Department in the amount of
$5,084,723 with an interest rate of 7.25% per annum, annual debt service
payments of $456,250, and a maturity of 2013. 425,408
State Revolving Fund
The State Water Resources Control Board issued a note to Santa Ana
Watershed Authority to provide funding the San Bernardino/Colton Rapid
Infiltration Extraction (RIX) project in the amount of $25,978,599. In April 2001,
the agreement was amended to transfer the note obligation to the successors
in interest being the City of San Bernardino Board of Water Commissioners,
and the City of Colton. The City Water Department will use revenues from the
sewer treatment utility fund towards repayment of the note. The note matures
in 2016 and bear interest at a rate of 2.80% per annum. 6,568,216
Total notes payable $ 31,547,225
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-89-
9. Long-Term Liabilities – Business-type Activities (continued)
B. Notes Payable (continued)
Future debt service requirements for notes payable outstanding as of June 30, 2012, are as
follows:
Year ending
June 30,PrincipalInterestTotal
20132,993,835$ 828,109$ 3,821,944$
20143,056,103 792,692 3,848,795
20153,143,473 705,008 3,848,481
20163,232,041 614,802 3,846,843
20171,566,895 522,036 2,088,931
2018 - 20228,550,615 1,888,788 10,439,403
2013 - 20275,881,662 807,355 6,689,017
2028 - 20323,122,601 207,947 3,330,548
Totals31,547,225$ 6,366,737$ 37,913,962$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-90-
9. Long-Term Liabilities – Business-type Activities (continued)
C. Certificates of Participation
1998 Refunding Sewer Revenue Certificates of Participation
In 1998, the sewer treatment utility issued $36,230,000 in Certificates of Participation to
advance refund the 1992 Sewer Certificates of Participation and fund additional capital
improvements. The 1992 Certificates originally provided for the construction of certain capital
improvements. The proceeds of the 1998 Certificates were invested and used to pay interest
on the 1998 issue until February 1, 2001, when the 1992 Certificates were called at a
prepayment premium of two percent. The City Water Department now pays the installment
payments on the 1998 Certificates from the net revenues of the sewer treatment system.
Interest is payable semiannually on February 1, and August 1. The issue has interest rates
ranging between 3.95% and 5.25% per annum, annual debt service payments ranging from
$1,697,000 to $3,474,000, and a maturity date of 2017.
The advance refunding resulted in an economic gain of $1,277,994 (difference between the
present value of the annual debt service payments between old and new debt).
Future debt service requirements for certificates of participation outstanding as of June 30,
2012, are as follows:
Year ending
June 30,PrincipalInterestTotal
20132,650,000$ 736,175$ 3,386,175$
20142,805,000 607,650 3,412,650
20152,965,000 474,412 3,439,412
20163,155,000 318,750 3,473,750
20173,220,000 161,000 3,381,000
14,795,000 2,297,987 17,092,987
Less: Deferred
Charges (87,668) - (87,668)
Totals14,707,332$ 2,297,987$ 17,005,319$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-91-
9. Long-Term Liabilities – Business-type Activities (continued)
D. Water Bonds Payable
Waterworks Bonds, Series C
During the year ended June 30, 1992, the South San Bernardino Water District merged with
the City Water Department, and assumed all the bonds. The bonds were initially issued
March 1, 1988, for $150,000 and mature annually commencing September 1, 1993, through
September 1, 2013 in principal amounts ranging from $5,000 to $16,200. Interest accrues at
7.75% per annum. The outstanding balance at June 30, 2012 is $15,000.
Future debt service requirements for water bonds payable outstanding as of June 30, 2012,
are as follows:
Year ending
June 30,PrincipalInterestTotal
201315,000$ 1,163$ 16,163$
Totals15,000$ 1,163$ 16,163$
10. Operating Leases
Effective December 15, 2008, the City’s Water Department took possession of leased space from
Superior Homes LLC for administrative office and warehouse space for a term of ten years. The
following is a schedule of minimum lease payments as of June 30, 2012.
WaterSewer
YearUtilityUtilityTotal
2013384,737$ 52,631$ 437,368$
2014384,737 52,631 437,368
2015384,737 52,631 437,368
2016384,737 52,631 437,368
2017384,737 52,631 437,368
1,923,685$ 263,155$ 2,186,840$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-92-
11. Mortgage Revenue Bonds Without Government Commitment
The accompanying financial statements do not include certain mortgage revenue bonds issued by
the Economic Development Agency (EDA). The bonds are special obligations payable solely from
payments made on and secured by a pledge of the acquired mortgage loans and certain reserve
funds and other monies in connection therewith, all pledged under the resolution authorizing the
issuance of the bonds. The bonds are not payable from any other revenues or assets of the EDA.
Neither the faith nor credit of the taxing powers of the City of San Bernardino, California, the State
of California or any political subdivision thereof, or the EDA is pledged to the payment of the
principal of or the interest on the bonds. Mortgage revenue bonds outstanding as of June 30, 2012
include the Multifamily Housing Revenue Bonds (Highland Lutheran Senior Housing Project) 1995
Series for $1,270,000 and the Multifamily Housing Revenue Bonds (Ramona Senior Complex
Project) Series 1995 for $1,120,000.
12. Compensated Absences Liability
City employees receive between 10 and 25 vacation days each year depending upon length of
service. An employee may accumulate earned vacation time to a maximum not to exceed 60
days. Upon termination, employees are paid the full value of their unused vacation time
determined at their present salary rate. City employees receive 12 personal necessity/sick leave
days each year. Upon termination or retirement, employees are paid one-half the value of their
unused personal necessity/sick leave time determined at their present salary rate. At June 30,
2012, $19,263,272 and $2,504,031 of vacation and leave have been accrued for governmental
and business-type activities, respectively.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-93-
13. Claims and Judgments Payable
The City of San Bernardino is self-insured for its liability, unemployment and long-term disability
programs. The accrued liability for estimated claims represents an estimate of the eventual loss on
claims arising prior to year-end including claims incurred but not yet reported.
Changes in the claims liability for the governmental activities for the years ended June 30, 2012
and 2011, are as follows:
Incurred
Claims and
Changes in
BeginningEstimatedPaymentsEnding
Governmental activities Balance Claimson Claims Balance
2010-2011:
Workers compensation8,466,811$ 3,851,677$ (1,910,039)$ 10,408,449$
Liability claims5,195,320 6,228,428 (1,690,178) 9,733,570
Total 2010-201113,662,131$ 10,080,105$ (3,600,217)$ 20,142,019$
2011-2012:
Workers compensation10,408,449$ 4,889,070$ (2,697,797)$ 12,599,722$
Liability claims9,733,570 741,863 (2,153,183) 8,322,250
Total 2011-201220,142,019$ 5,630,933$ (4,850,980)$ 20,921,972$
Changes in the claims liability for the business-type activities for the years ended June 30, 2012
and 2011, are as follows:
Incurred
Claims and
Changes in
BeginningEstimatedPaymentsEnding
Business-type activities Balance Claimson Claims Balance
2010-2011:
Workers compensation313,994$ 135,751$ (161,062)$ 288,683$
2011-2012:
Workers compensation288,683$ 233,438$ (97,680)$ 424,441$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-94-
13. Claims and Judgments Payable (continued)
Currently, the City is a member of the Big Independent Cities Excess Pool (BICEP) which covers
general liability claims. BICEP pools catastrophic general liability, automobile liability, and public
official’s errors and omissions losses. BICEP intends to pool covered catastrophic losses incurred
by its members, thereby eliminating the need for excess commercial insurance protection. As a
result, each member's share of pooled costs will depend on the catastrophic losses of all the
members. In addition, the cost of a member city will also depend on that member's own loss
experience. Entities with a consistent record of costly claims will pay more than entities with a
consistent record of limited serious claims activity. The following public entities are members of
BICEP: Huntington Beach, Oxnard, West Covina, San Bernardino and Santa Ana.
For liability claims, the City is self-insured for the first $1 million. The first million in excess of the
self-insured limit is divided up proportionately among the BICEP members. In addition, the City
has obtained excess liability coverage using a tiered system with three carriers totaling $25 million
per occurrence.
Currently, the City is a member of the CSAC Excess Insurance Authority (the Authority) for its
workers compensation claims. For these claims, the City is self-insured for the first $1 million. The
first $4 million in excess of the self-insured limit is insured through the Authority. In addition, for
amounts in excess of the $5 million self-insurance and Authority coverage, the City has obtained
an additional $45 million in liability coverage from ACE American Insurance Company.
Settled claims for general liability and workers’ compensation have not exceeded insurance
coverage during the past three years.
Estimated claims liabilities at June 30, 2012, including estimates for claims incurred but not
reported, have been recorded by BICEP and the City’s corresponding share of cost (Premium) is
included in claims expense in the Liability Insurance Internal Service Fund.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-95-
14. Fund Deficits and Expenditures in Excess of Appropriations
At June 30, 2012, the following governmental funds have deficits that are anticipated to be funded
from future grants, other revenues and operating transfers:
Deficit Amount
General Fund12,209,084$
Special revenue fund:
Fire Station 3,156
Debt service fund:
Assessment District #1015287,790
Capital projects funds:
Special Assessments2,700
Street Construction2,947,065
At June 30, 2012, the following proprietary funds have accumulated deficits that are anticipated to
be recovered in future periods from user charges and/or operating transfers, as follows:
Deficit Amount
Internal service funds:
Unemployment Insurance128,381$
Workers' Compensation13,759,290
Liability Insurance6,681,950
Utility 882,996
Central Services92,431
As of June 30, 2012, the General Fund does not have the financial capacity to fund such
accumulated deficits. Therefore, management expects that funding for the accumulated deficits
will take years to accomplish. The accumulated deficit of the Workers’ Compensation Internal
Service Fund, which accounts for self-insurance activities, is due to higher claims experienced
versus amounts charged to the various departments.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-96-
14. Fund Deficits and Expenditures in Excess of Appropriations (continued)
The General Fund reported expenditures in excess of appropriations for the year ended June 30,
2012, based on the level of budgetary control:
FinalActual Variance with
BudgetAmountsFinal Budget
General Fund:
General government:
Mayor:
Other149,800$ 170,486$ (20,686)$
City treasurer:
Personnel salaries and benefits180,600 185,930 (5,330)
City manager:
Other 145,900 160,305 (14,405)
Human resources:
Personnel salaries and benefits462,800 485,744 (22,944)
Finance:
Personnel salaries and benefits1,525,000 2,148,955 (623,955)
Other 238,285 431,939 (193,654)
Public safety:
Police:
Personnel salaries and benefits54,416,000 55,306,727 (890,727)
Fire:
Personnel salaries and benefits28,391,800 31,647,977 (3,256,177)
Streets:
Community development:
Personnel salaries and benefits1,713,400 1,857,785 (144,385)
Culture and recreation:
Park, recreation and community services:
Other2,604,400 3,079,434 (475,034)
Debt service:
Principal- 1,119,577 (1,119,577)
Interest and fiscal charges- 2,677,403 (2,677,403)
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-97-
15. Net Assets
The government-wide statement of net assets reports net assets as follows:
GovernmentalBusiness-type
ActivitiesActivitiesTotal
Invested in capital assets, net of related debt:
Total capital assets, net425,324,211$ 255,203,431$ 680,527,642$
Cash and investments, restricted for
debt service- 3,602,182 3,602,182
Note proceeds held by state- 10,000,000 10,000,000
Less related debt:
Capital leases payable(2,584,734) (10,280,057) (12,864,791)
Notes payable(5,748,785) (31,547,225) (37,296,010)
Lease revenue bonds(9,810,000) - (9,810,000)
California Infrastructure Bank(8,005,034) - (8,005,034)
Certificates of participation(4,520,000) (14,707,332) (19,227,332)
Bonds payable- (15,000) (15,000)
Total invested in capital assets, net of
related debt394,655,658 212,255,999 606,911,657
Restricted for:
Public safety1,552,213 - 1,552,213
Streets and capital projects24,246,718 - 24,246,718
Culture and recreation2,357,706 - 2,357,706
Community development76,110,877 - 76,110,877
Economic development7,472,526 - 7,472,526
Community service813,439 - 813,439
Debt service80,692 - 80,692
Capital related fees- 7,389,246 7,389,246
Total restricted net assets112,634,171 7,389,246 120,023,417
Unrestricted net assets(126,831,648) 40,727,533 (86,104,115)
Total net assets380,458,181$ 260,372,778$ 640,830,959$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-98-
16. Defined Benefit Pension Plan
Plan Description
The City of San Bernardino contributes to the California Public Employees Retirement System
(PERS), an agent multiple-employer public employee defined benefit pension plan. PERS
provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits
to plan members and beneficiaries. PERS acts as a common investment and administrative
agent for participating public entities within the State of California. Benefit provisions and all
other requirements are established by state statute and City contracts with employee bargaining
groups. Copies of PERS’ annual financial report may be obtained from its executive office at 400
“P” Street, Sacramento, California 95814, or at www.calpers.ca.gov.
Funding Policy
Participants are required to contribute 8% (9% for safety employees) of their annual covered
salary. The City makes the contributions required of City employees on their behalf and for their
account.
Under GASB 27, an employer reports an annual pension cost (APC) equal to the annual
required contribution (ARC) plus an adjustment for the cumulative difference between the APC
and the employer's actual plan contributions for the year. The cumulative difference is called the
net pension obligation (NPO). The ARC for the period July 1, 2011 to June 30, 2012 has been
determined by an actuarial valuation of the plan as of June 30, 2009. The contribution rate
indicated for the fiscal year ended June 30, 2012 was 28.277% of covered payroll for the safety
plan, and 17.248% for the miscellaneous plan. In order to calculate the dollar value of the ARC
for inclusion in financial statements prepared as of June 30, 2012, these contribution rates
would be multiplied by the payroll of covered employees that was actually paid during the period
July 1, 2011 to June 30, 2012.
Actuarial Methods and Assumptions
A summary of principal assumptions and methods used to determine the ARC is shown below:
Valuation Date June 30, 2009
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method Level percent of payroll
Average Remaining Period 29 (safety) 26 (miscellaneous) years as of the valuation
date
Asset Valuation Method 15 year smoothed market
Actuarial Assumptions
Investment Rate of Return 7.75% (net of administrative expenses)
Projected Salary Increases 3.55% to 14.45% depending on age, service, type of
employment and plan
Inflation 3.00%
Payroll Growth 3.25%
Individual Salary Growth A merit scale varying by duration of employment
coupled with an assumed annual inflation growth of
3.0% and an annual production growth of 0.25%.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-99-
16. Defined Benefit Pension Plan (continued)
Actuarial Methods and Assumptions (continued)
Initial unfunded liabilities are amortized over a closed period that depends on the plan's date of
entry into PERS. Subsequent plan amendments are amortized as a level percent of pay over a
closed 20-year period. Gains and losses that occur in the operation of the plan are amortized
over a rolling period, which results in an amortization of 6% of unamortized gains and losses
each year. If the plan's accrued liability exceeds the actuarial value of plan assets, then the
amortization period may not be lower than the payment calculated over a 30-year amortization
period.
Contributions
The following is the three-year trend information for contributions to PERS
(Dollar amounts in thousands)
City - Miscellaneous
FiscalAnnual PensionPercentage ofNet Pension
Year EndingCost (APC)APC ContributedObligation
June 30, 20104,161$ 100%-$
June 30, 20114,375 100%-
June 30, 20125,608 100%-
City - Safety
FiscalAnnual PensionPercentage ofNet Pension
Year EndingCost (APC)APC ContributedObligation
June 30, 201011,225$ 100%-$
June 30, 201111,042 100%-
June 30, 201213,077 100%-
FiscalAnnual PensionPercentage ofNet Pension
Year EndingCost (APC)APC ContributedObligation
June 30, 2010377,362$ 100%-$
June 30, 2011400,310 100%-
June 30, 2012679,501 100%-
Economic Development Agency
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-100-
16. Defined Benefit Pension Plan (continued)
Benefits
All full-time City employees are eligible to participate in PERS, with benefits vesting after 5 years
of credited service. Classic members who retire at age 50 with at least 5 years of credited service
are entitled to a service retirement benefit, payable monthly for life, equal to the product of the
benefit factor, years of service, and final compensation. The years of service is the amount
credited by PERS to a member while he or she is employed in the group. The benefit factors come
from the 2.0% at 55 and 2.7% at 55 Miscellaneous benefit factor tables, the 3.0% at 50 Safety
benefit factor table, and the 2.0% at 55 and 3.0% at 60 EDA benefit factor tables, and depends on
the member’s age at retirement. The factors range from 1.426% at age 50 to 3.0% at age 63 and
up. Final compensation for members is the monthly average of the member’s highest 36 or 12
consecutive months’ full-time equivalent monthly pay. The Miscellaneous service retirement
benefit is not capped. The Safety service retirement benefit is capped at 90% of final
compensation.
Funded Status and Funding Progress
As of the most recent actuarial valuation dates of June 30, 2012, the combined plans
(Miscellaneous, Safety, and EDA) were 83.5% funded based on the actuarial value of assets. The
actuarial accrued liability for benefits was $1.08 billion, and the actuarial value of assets was $902
million, resulting in an unfunded actuarial accrued liability (UAAL) of $179 million. The covered
payroll (annual payroll of active employees covered by the plan) was $93.1 million, and the ratio of
the UAAL to the covered payroll was 191.9%.
The schedule of funding progress, presented as Required Supplementary Information (RSI)
following the notes to the financial statements, presents multiyear trend information about whether
the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits.
17. Other Post-Employment Benefits
City (Excluding Water Department)
Plan Description
The City administers a single employer defined benefit healthcare plan (the Plan). The Plan
currently provides healthcare and life insurance for eligible retirees and their surviving spouses
through the City’s group health insurance plan which is administered by Mercer. Life insurance
premiums are paid 100% by retirees. The Plan covers both active and retired members. Benefits
provisions are established through negotiations between the City and various union bargaining
groups. The Plan does not issue a publicly available financial report.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-101-
17. Other Post-Employment Benefits (continued)
Funding Policy
Contribution requirements of the Plan are established through negotiations between the City and
union representatives. The required contribution is based on pay-as-you-go financing
requirements. For fiscal year 2012, the City contributed $627,000 to the Plan. The City currently
contributes $112 per month of the required premium costs of active employees. Retired
employees are permitted to participate with active employees in the health-care plan, but retirees
must pay all premiums as calculated by Mercer, less the City’s payment of $112 per month,
assigned to them, except for sworn police employees. The City’s monthly contribution for sworn
police employees is in accordance with the following schedule:
Years of service Monthly Contribution
20 $ 200
25 350
30 450
Annual OPEB Cost and Net OPEB Obligation
The City’s annual other OPEB cost (expense) is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined in accordance with the
parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an
ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed thirty years. The following table shows
the components of the City’s annual OPEB cost for the year, the amount actually contributed to
the Plan, and changes in the City’s net OPEB obligation:
Annual Required Contribution (ARC)7,293,000$
Interest on net OPEB obligation998,000
Adjustment to annual required contribution(1,666,000)
Annual OPEB cost (expense)6,625,000
Contributions made
Benefit payments (cash subsidy)(627,000)
Benefit payments (implied subsidy)(886,000)
Total contributions made(1,513,000)
Increase in net OPEB obligation5,112,000
Net OPEB obligation - beginning of year19,956,601
Net OPEB obligation - end of year25,068,601$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-102-
17. Other Post-Employment Benefits (continued)
Annual OPEB Cost and Net OPEB Obligation (continued)
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and
the net OPEB obligation for 2012 and the two preceding years were as follows:
FiscalAnnualPercentage of
YearOPEBAnnual OPEB Net OPEB
EndedCostCost ContributedObligation
June 30, 20105,790,000$ 19%14,960,736$
June 30, 20116,197,000 19%19,956,601
June 30, 20126,625,000 23%25,068,601
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2012, the most recent valuation date, was as follows:
Actuarial accrued liability (AAL)48,819,000$
Actuarial value of plan assets-
Unfunded actuarial accrued liability (UAAL)48,819,000$
Funded ratio (actuarial value of plan assets/AAL)0%
Covered payroll (active plan members)84,166,000$
UAAL as a percentage of covered payroll58%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the Plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for the benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include the types of benefits provided
at the time of each valuation and the historical pattern of sharing of benefit costs between
employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial assets, consistent with long-term perspective of the calculations.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-103-
17. Other Post-Employment Benefits (continued)
Actuarial Methods and Assumptions (continued)
In the June 30, 2012 actuarial valuation, the actuarial cost method used for determining the
benefit obligations is the entry age normal cost method. The actuarial assumptions included a
4.25% discount rate, which is the assumed rate of the expected long-term investment returns on
plan assets calculated based on the funded level of the plan at the valuation date, and an annual
healthcare cost trend rate of 8.5% initially, reduced by increments of 0.5% per year to an ultimate
rate of 5.0%. The unfunded actuarial accrued liability (UAAL) at June 30, 2012 is being amortized
as a level percent of payroll over a 21-year fixed (closed) period. Future assumption changes, plan
changes, and gain/losses are amortized over a 15-year fixed (closed) period. The maximum
combined period amortization is 30-years. It is assumed the City’s payroll will increase 3.25% per
year.
Water Department
Plan Description
The City Water Department (Department) provides health benefits to all qualifying retirees and
their spouses in accordance with Memorandums of Understanding under various labor
agreements. The Department maintains the financial activity of the plan as a trust fund, and no
separate financial report is publically available. Employees are eligible for retiree health benefits if
they retire from the Department on or after age 50 with at least 10, 12, or 15 years of service,
depending on bargaining unit, and are eligible for a PERS pension.
Funding Policy
The contribution requirements of plan members and the Department are established and may be
amended by the Board of Water Commissioners. The required contribution is based in projected
pay-as-you-go financing requirements, with an additional amount to prefund benefits as
determined annually by the Board of Water Commissioners. For fiscal year 2012, the Department
has funded $1,728,000 for the current year, plus $6,530,000 for previous years to the trust. Plan
members receiving benefits contributed $141,400 (approximately 5.9% of total premiums) through
their required contribution. The Department pays up to the entire cost of health benefits for eligible
retirees and their spouses, subject to the City’s vesting schedule.
Annual OPEB Cost and Net OPEB Obligation
The Department’s annual other post-employment benefit (OPEB) cost (expense) is calculated
based on the annual required contribution (ARC) of the employer, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a
level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
years. The following table shows the components of the Department’s annual OPEB cost for the
year, the amount actually contributed to the plan, and changes in the Department’s net OPEB
obligation:
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-104-
17. Other Post-Employment Benefits (continued)
Annual OPEB Cost and Net OPEB Obligation (continued)
Annual Required Contribution (ARC)2,729,000$
Interest on net OPEB obligation327,000
Adjustment to annual required contribution(546,000)
Annual OPEB cost (expense)2,510,000
Contributions made(9,040,000)
Decrease in net OPEB obligation(6,530,000)
Net OPEB obligation - beginning of year6,530,000
Net OPEB obligation - end of year-$
The Department’s annual OPEB cost, the percentage of annual OPEB cost contributed to the
plan, and the net OPEB obligation for 2012 and the two preceding years were as follows:
FiscalAnnualPercentage of
YearOPEBAnnual OPEB Net OPEB
EndedCostCost ContributedObligation
June 30, 20102,213,000$ 30%4,851,000$
June 30, 20112,355,000 29%6,530,000
June 30, 20122,510,000 360%-
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2010, the most recent valuation date, was as follows:
Actuarial accrued liability (AAL)28,676,000$
Actuarial value of plan assets-
Unfunded actuarial accrued liability (UAAL)28,676,000$
Funded ratio (actuarial value of plan assets/AAL)0%
Covered payroll (active plan members)12,619,000$
UAAL as a percentage of covered payroll227%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the Plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for the benefits.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-105-
17. Other Post-Employment Benefits (continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include the types of benefits provided
at the time of each valuation and the historical pattern of sharing of benefit costs between
employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial assets, consistent with long-term perspective of the calculations.
In the June 30, 2010 actuarial valuation, the entry age actuarial cost method was used. The
actuarial assumptions included a rate of return of 5% and annual healthcare costs trend rates of
10.9% initially, reduced by increments to an ultimate rate of 4.5% after ten years. Both rates
included a 3% inflation assumption. The actuarial value of assets was determined using
techniques that spread the effects of short-term volatility in the market value of investments over a
five-year period. The UAAL is being amortized as a level percentage of projected payroll on an
open basis. The remaining amortization period at June 30, 2012 was 28 years.
Economic Development Agency
Plan Description
The Economic Development Agency (EDA) administers a single employer defined benefit
healthcare plan (the Plan). The EDA provides medical and dental plan coverage for retirees and
their eligible surviving dependents. This coverage is available for employees who satisfy the
requirements for retirement under the California Public Employees Retirement System (PERS),
which is age 50 or older with at least eight years of EDA service. The Plan does not issue a
publicly available financial report.
Funding Policy
The contribution requirements of the EDA are established and may be amended by the EDA’s
Board. The required contribution is based on pay-as-you-go financing requirements. For fiscal
year 2012, the EDA contributed $18,326 to the plan, which was 100% of the total current
premiums.
Annual OPEB Cost and Net OPEB Obligation
The EDA’s annual other OPEB cost (expense) is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined in accordance with GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or
funding excess) not to exceed thirty years. The following table shows the components of the
EDA’s annual OPEB cost for the year, the amount actually contributed to the plan, and changes in
the EDA’s net OPEB obligation:
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-106-
17. Other Post-Employment Benefits (continued)
Annual OPEB Cost and Net OPEB Obligation (continued)
Annual Required Contribution (ARC)211,490$
Interest on net OPEB obligation34,926
Adjustment to annual required contribution(46,559)
Annual OPEB cost (expense)199,857
Contributions made(18,326)
Increase in net OPEB obligation181,531
Net OPEB obligation - beginning of year776,138
Net OPEB obligation - end of year957,669$
The EDA’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan, and
the net OPEB obligation for 2012 and the two preceding years were as follows:
FiscalAnnualPercentage of
YearOPEBAnnual OPEB Net OPEB
EndedCostCost ContributedObligation
June 30, 2010208,055$ 8%587,669$
June 30, 2011204,639 8%776,138
June 30, 2012199,857 9%957,669
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2008, the most recent valuation date, was as follows:
Actuarial accrued liability (AAL)749,208$
Actuarial value of plan assets-
Unfunded actuarial accrued liability (UAAL)749,208$
Funded ratio (actuarial value of plan assets/AAL)0%
Covered payroll (active plan members)1,763,100$
UAAL as a percentage of covered payroll42%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the Plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents multi-
year trend information about whether the actuarial value of plan assets is increasing or decreasing
over time relative to the actuarial accrued liabilities for the benefits.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-107-
17. Other Post-Employment Benefits (continued)
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and the plan members) and include the types of benefits provided
at the time of each valuation and the historical pattern of sharing of benefit costs between
employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued
liabilities and the actuarial assets, consistent with long-term perspective of the calculations.
The actuarial cost method used for determining the benefit obligations is the entry age normal cost
method. The actuarial assumptions included a 4.5% discount rate, which is the assumed rate of
the expected long-term investment returns on plan assets calculated based on the funded level of
the Plan at the valuation date, and an annual healthcare cost trend rate of zero percent initially,
which increases to 5.0% in the fourteenth year. The UAAL is being amortized as level percentage
of projected payroll over 20 years.
18. Other Retirement Plan (PARS)
Effective January 1, 2004, pursuant to sections 4041(a) and 501(a) of the Internal Revenue Code,
the City adopted a tax-qualified governmental defined benefit plan, the City of San Bernardino
Public Agency Retirement System (PARS) – Retirement Enhancement Plan (the Plan). The Plan
is administered by the City and was established to provide certain police safety or police
management employees employed as of January 1, 2004, meeting specific requirements as
outlined in the Plan document, supplemental retirement benefits in addition to the benefits
employees will receive from the Public Employees Retirement System (PERS). The Plan is
entirely funded through City contributions amounting to 1.70% of employee salaries. The City’s
contributions to the Plan amounted to $518,084 in 2012 and $566,368 in 2011.
19. Jointly Governed Organizations
Inland Valley Development Agency
In January 1990, the City entered into a joint powers agreement with the Cities of Colton and
Loma Linda and the County of San Bernardino to form the Inland Valley Development Agency
(IVDA). The IVDA adopted a redevelopment plan, and its primary purpose is to promote the
redevelopment of the former Norton Air Force Base and other areas within its project area. The
IVDA board is comprised of three members from the City and two each from the other members.
The primary sources of funding are tax increment and lease income. As of June 30, 2012, the
outstanding balance due from IVDA was $34,519. Additional financial information can be obtained
by contacting the IVDA at 1601 E. Third Street, San Bernardino, CA 92408.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-108-
19. Jointly Governed Organizations (continued)
San Bernardino International Airport Authority
In May 1992, the City entered into a joint powers agreement with the Cities of Colton, Loma Linda,
Highland and Redlands and the County of San Bernardino to form the San Bernardino
International Airport Authority (SBIAA). SBIAA was created primarily for the purpose of acquiring,
operating, repairing, maintaining and administering the aviation related portions of the former
Norton Air Force Base property located in San Bernardino. Effective April 19, 1996, the City of
Redlands withdrew from its membership in SBIAA. The board is comprised of two members from
the City and one each from the other members. The primary sources of funding are loans, federal
grants and lease income. Additional financial information can be obtained by contacting SBIAA at
1601 E. Third Street, San Bernardino, CA 92408.
San Bernardino Regional Water Resource Authority
In August 1998, the City entered into a joint powers agreement with the Inland Valley
Development Agency (IVDA) and the San Bernardino Valley Municipal Water District (the
District) to form the San Bernardino Regional Water Resources Authority (the Authority). The
Authority was created primarily for the purpose of conducting a water resource and storage
project. The Authority board is comprised of three members from the City, one member from
IVDA and two from the District. The primary sources of funding are loans and grants. Additional
financial information can be obtained by contacting the Authority at 201 North “E” Street, Third
Floor, San Bernardino, CA 92401.
Colton / San Bernardino Regional Tertiary Treatment and Water Reclamation Authority
On August 2, 1994, the City of San Bernardino, through the Water Department formed a joint
powers authority with the City of Colton to construct, operate, use and maintain tertiary
wastewater treatment, disposal and water reclamations systems, including the Regional Rapid
Infiltration and Extraction Facility (RIX). This authority is governed by a separate board
consisting of four members; two appointed by the City through the Water Department's Board of
Water Commissioners and two appointed by the City Council of the City of Colton. Construction
of RIX was administered by the Santa Ana Watershed Project Authority and was substantially
completed during 1996. Administration and operation was turned over at that time. The cities of
San Bernardino and Colton each have an undivided interest in the real property and any related
debt of the RIX projects based on an 80% / 20% split, respectively. The Water Department's
investment in the joint venture is included as capital assets of the Sewer Fund. The joint venture
is not experiencing financial stress.
San Bernardino Public Safety Authority
On April 1, 1968, the City of San Bernardino and the County of San Bernardino formed the San
Bernardino Public Safety Authority (PSA), a joint powers authority, as a financing vehicle to
construct (1) public safety buildings and (2) improvements to the wastewater treatment plant.
Effective with the transfer of the sewer treatment utility to the City Water Department by resolution
in October 1973, all the assets were transferred to the Water Department and are included in the
capital assets of the Sewer Fund. The Water Department utilized the PSA to issue the 1998
Certificates of Participation debt. The joint venture is not experiencing financial stress.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-109-
19. Jointly Governed Organizations (continued)
West End Water Development, Treatment and Conservation Joint Powers Authority
On August 15, 1990, the City of San Bernardino joined the West End Water Development,
Treatment and Conservation Joint Powers Authority (WEJPA) as a financing vehicle for
construction of water facilities. A three-member board consisting of one representative from each
agency’s governing body governs the WEJPA. The Water Department’s investment in the joint
venture is included in capital assets of the Water Fund. The joint venture is not experiencing
financial stress.
20. Consent Decree
In 1996, the City of San Bernardino filed a complaint against the United States of America,
Department of the Army to recover damages, response costs and other available remedies
relating to contamination alleged to have originated at a World War II army installation known as
Camp Ono. In March 2005, the United States District Court, Central Division entered judgment, in
the form of a consent decree, in the matter of City of San Bernardino v. United States of America.
The Consent Decree settles the City’s and the State’s claims arising from the groundwater
contamination allegedly caused by the Army. The Consent Decree contains a number of
provisions obligating the City (through the City’s Water Department) to operate and maintain the
Newmark Groundwater Superfund site (Site). The Site consists of two operable units, the
Newmark Operable Unit and the Muscoy Operable Unit. The Newmark Operable Unit was
declared operational and functional in 1998. The Muscoy Operable unit was declared operational
and functional in 2007.
The Consent Decree provided for a payment of $69 million from the Army to the City for
performance of the work outlined in the Consent Decree. Upon acceptance of the Consent
Decree, the Department received title to all facilities constructed by the United States
Environmental Protection Agency (EPA) of the Site and agreed to operate and maintain the
groundwater extraction and treatment system for a period of 50 years. The $69 million payment
consisted of $59 million for operations and maintenance and $10 million for the construction of
certain capital facilities that would be required in the future; the funds are subject to strict
limitations, contained in the Consent Decree, as to how the money may be spent.
Pursuant to the Consent Decree, $10 million, including interest earned, has been set aside to be
used only for (i) funding construction of treatment and directly related transmission systems that
expand the Water Department’s capacity to deliver potable water and (ii) funding work performed
by the Water Department to complete construction of the Muscoy Operable Unit extraction
system. These capital facility funds may not be used for costs incurred to operate, maintain, repair
or retrofit components of the site extraction of treatment systems constructed by EPA.
In March 2006, the Water Department entered into a Guaranteed Investment Contract with AIG
Match Funding Corporation. The Department invested $16,482,039 of excess Consent Decree
funds into an interest bearing Escrow Fund investment with an interest rate of 4.95% per annum.
These funds were invested to pay costs associated with the water facilities defined in the Consent
Decree for years 2035-2056. An additional $50 million was used to purchase a blended insurance
policy to provide a financial vehicle that provides cost cap coverage for the first 30 years of
expenses.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-110-
20. Consent Decree (continued)
The terms of the Guaranteed Investment Contract only provided the Department with the position
of a secured creditor with respect to an AIG bankruptcy. As concerns rose regarding AIG’s
financial credibility, in October 2008, the Department negotiated and accepted a “payout” in the
amount of $18,661,876 which represented the principal and accrued interest as of that date.
These funds are currently invested in a diversified portfolio managed by PFM Asset Management.
21. Pollution Remediation
The City operated a municipal non-hazardous solid waste facility, identified as the “Waterman
Landfill”, from 1950 to 1960. The City is the primary responsible party for pollution remediation
obligations related to the Waterman Landfill. During the 1990s, groundwater monitoring wells
were installed and placed into service as part of the overall remediation plan. In 2004, it was
determined that additional work was required to comply with state regulations. State regulatory
agencies approved a plan for final closure of the Waterman Landfill in 2012. The City is currently
in the design phase of the remediation project, and anticipates the construction phase to begin
in 2016. Pollution remediation costs for the closure of the Waterman Landfill are estimated at
$5,000,000, measured using the expected cash flow technique. This estimate is subject to
change in future periods due to various factors including changes in the remediation plan or
operating conditions, the type of equipment and services that will be used, price increases or
reductions for specific outlay elements such as ongoing monitoring requirements, changes in
technology, or changes in legal or regulatory requirements. The liability is reported in the
Integrated Waste Fund in the accompanying financial statements. Post-closure care costs to
maintain and monitor the site are not recognized in the accompanying financial statements.
22. Commitments
Contractual Obligations
Commitments in the form of signed contracts for costs to complete construction projects or other
improvements, including street repairs and infrastructure improvements, at June 30, 2012,
amounted to $1,954,378 in the governmental funds, $10,958,722 in the water enterprise fund, and
$1,588,560 sewer enterprise fund.
23. Contingencies
Federal and State Grants
Amounts received or receivable from grantor agencies are subject to audits or adjustments by
grantor agencies, principally the federal and state governments. Such audits could lead to
disallowed claims under the terms of the grants, including amounts already collected, which may
constitute a liability of the City.
The City was subject to an audit of its Community Development Block Grant Program,
administered by the United States Department of Housing and Urban Development (HUD). The
audit was conducted by the Office of the Inspector General of HUD. The audit report, dated
April 23, 2013, identified approximately $7.1 million of reimbursed expenses as ineligible or
unsupported. The City, on behalf of the Successor Agency (and former Economic Development
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-111-
23. Contingencies (continued)
Federal and State Grants (continued)
Agency) has responded to the audit report, and is currently compiling and preparing
documentation to be submitted to reduce and/or eliminate certain specific findings. The City
anticipates that the disallowed costs related to the audit findings will be significantly smaller than
initially reported, and therefore, no contingent liability related to this matter has been accrued in
the accompanying financial statements. There is no assurance, however, that the amounts
related to any of the findings will be reduced and/or eliminated, and consequently, the City may
be liable for repayment of unsupported grant funds received.
Gas Tax Revenues
The City is subject to periodic audits of its use of gas tax revenues by the State Controller’s Office.
The City used a portion of gas tax revenues to make certain debt service payments on a note
payable related to pavement rehabilitation (street-related) projects. State guidelines relating to gas
tax expenditures limit the amount of revenue available for debt service expenditures, as well as
the type of debt that may be paid. State regulatory authorities have not issued an opinion on the
matter and the potential exposure to the City’s General Fund is uncertain, and therefore, no
contingent liability related to this matter has been accrued in the accompanying financial
statements.
Litigation
The City has been named as a defendant in various claims and legal actions. The outcomes and
ultimate liability for these claims and legal actions have been evaluated based on legal counsel’s
estimated range of loss and the probability of an unfavorable outcome for each case. A contingent
liability of $20.9 million is reported as claims and judgments payable in the Internal Service Funds
of the accompanying financial statements. There are no reserves set aside for these
contingencies.
24. Subsequent Events
Purchase of Real Property
In July 2012, the City’s Water Department closed escrow on the purchase of real property from the
San Bernardino Valley Municipal Water District, which included a down payment of $1,000,000
and a promissory note of $1,117,500 to be paid in sixty (60) monthly installments.
Correspondence with California Department of Finance
A March 21, 2014 letter from the California Department of Finance (DOF) indicated that
$3,413,155 of Low- and Moderate-Income Housing Fund (LMIHF) balances are to be transferred
from the LMIHF to the County Auditor-Controller for distribution to the affected taxing entities. The
City does not contest $200,000 of this total balance. Through correspondence with the DOF
subsequent to the issuance of their letter on March 21, 2014, the DOF acknowledged that it did
not have a complete data set with respect to the disputed items. The City intends to forward the
missing data to the DOF for its review. If the DOF determines that the data received provides
sufficient justification, the amount in dispute may be adjusted or eliminated.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-112-
25. Restatement of Prior Year Balances
Net assets at the beginning of the year were restated as follows:
Governmental Business-Type
ActivitiesActivities
Netassetsatthebeginningoftheyear,aspreviously
reported 362,529,454$ 254,016,393$
Netincreaseresultingfromitemsexpendedinpreviousyears
thathavebeenreclassifiedasnotesreceivableandproperty
heldforresaleintheEconomicDevelopmentAgencySpecial
Revenue Fund.2,621,424 -
Increaseresultingfromthereversalofaccruedexpensesthat
werepaidinapreviousyearintheEconomicDevelopment
Agency Special Revenue Fund.278,948 -
Decreaseresultingfromthedispositionofpropertyheldfor
resalewherethesalewasrecognizedinapreviousyearin
the Economic Development Agency Capital Projects Fund.(385,000) -
Netincreaseresultingfromitemsexpendedinpreviousyears
thathavebeenreclassifiedasnotesreceivableandproperty
heldforresaleintheFederalandStateGrantsSpecial
Revenue Fund.3,972,214 -
Decreaseresultingfromthereversalofatransferreportedin
fiscalyear2010-11betweentheCemeterySpecialRevenue
Fund and the Cemetery Perpetual Care Trust Fund.(318,700) -
Increaseresultingfromthecorrectionoferrorsdiscoveredin
thebeginningbalanceofaccumulateddepreciationdueto
thecapitalassetstrackingsystemcalculatingdepreciation
incorrectly in the Water Enterprise Fund.- 4,140,116
Increaseresultingfromthecorrectionoferrorsdiscoveredin
thebeginningbalanceofaccumulateddepreciationdueto
thecapitalassetstrackingsystemcalculatingdepreciation
incorrectly in the Sewer Enterprise Fund.- (2,470,690)
Net assets at the beginning of the year, as restated 368,698,340$ 255,685,819$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-113-
26. Successor Agency Trust for Assets of Former Redevelopment Agency
On December 29, 2011, the California Supreme Court upheld Assembly Bill X1 26 (the “Bill”) that
provides for the dissolution of all redevelopment agencies in the State of California. This action
impacted the reporting entity of the City since the City had previously reported its redevelopment
agency (commonly referred to as the “Economic Development Agency” or “EDA”) as a blended
component unit on the City’s financial statements.
The Bill provides that upon dissolution of the redevelopment agency, either the city or another unit
of local government may serve as the “successor agency” to hold the assets of the dissolved
redevelopment agency until they are disposed of in accordance with applicable laws and
regulations. On January 9, 2012, the City Council adopted resolution 2012-12, electing to serve as
the Successor Agency to the former redevelopment agency of the City of San Bernardino in
accordance with the Bill. On January 23, 2012, the City Council adopted resolution 2012-19 to
have the City of San Bernardino serve as the Successor Housing Agency to the former
redevelopment agency of the City of San Bernardino.
After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the
State of California were prohibited from entering into new projects, obligations or commitments.
Subject to the control of a newly established oversight board, remaining assets can only be used
to pay enforceable obligations in existence at the date of dissolution, including the completion of
any unfinished projects that were subject to legally enforceable contractual commitments.
In future fiscal years, successor agencies will only be allocated tax increment revenue (to the
extent available in the Redevelopment Property Tax Trust Fund, or “RPTTF”, as maintained by the
County Auditor/Controller) in the amount that is necessary to pay the estimated annual payments
on enforceable obligations of the former redevelopment agency until all enforceable obligations of
the prior redevelopment agency have been paid in full and all assets have been redistributed or
liquidated.
The Bill directs the State Controller of the State of California to review the propriety of any
transfers of assets between redevelopment agencies and other public bodies that occurred after
January 1, 2011. If the public body that received such transfers is not contractually committed to a
third party for the expenditure or encumbrance of those assets, the State Controller is required to
order the available assets to be transferred to the public body designated as the successor
agency by the Bill.
In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court
on December 29, 2011) all redevelopment agencies in the State of California were dissolved and
ceased to operate as a legal entity as of February 1, 2012. Prior to that date, the final seven
months of activity of the redevelopment agency continued to be reported in the governmental
funds of the City. These funds included the Economic Development Agency Special Revenue
Fund, the Economic Development Agency Debt Service Fund, and the Economic Development
Agency Capital Projects Fund. After the date of dissolution, the assets, liabilities, and activities of
the dissolved redevelopment agency are reported in the Low and Moderate Income Housing
Fund, a City special revenue fund (for housing assets, liabilities, and activities), and a private-
purpose trust fund, a type of fiduciary fund (for non-housing assets, liabilities, and activities), in the
financial statements of the City.
The transfer of assets and liabilities of the former redevelopment agency as of February 1, 2012
(effectively the same date as January 31, 2012) from the governmental funds of the City to a
special revenue fund (housing) and a fiduciary fund (non-housing) were reported as an
extraordinary gain/loss in the governmental fund and fiduciary fund financial statements.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-114-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
Because of the different measurement focus of the governmental funds (current financial
resources measurement focus), and the measurement focus of the trust fund (economic resources
measurement focus), the extraordinary gain/loss recognized in the governmental funds will not be
the same amount as the extraordinary gain/loss that will be recognized in the fiduciary fund
financial statements.
The difference between the extraordinary losses recognized in the fund financial statements, and
the extraordinary loss reported in the fiduciary fund financial statements are reconciled as follows:
Total extraordinary loss reported in governmental funds(110,339,812)$
Capital assets reported in the government-wide financial statements(20,455,520)
Deferred charges (cost of issuance) reported in the government-wide
financial statements(1,272,587)
Long-term debt reported in the government-wide financial statements181,912,356
Total extraordinary gain reported in the government-wide financial statements49,844,437$
Total extraordinary loss reported in the fiduciary funds49,844,437$
The EDA and the Successor Agency to the EDA conducted some of their activities through three
affiliated entities: San Bernardino Economic Development Corporation (SBEDC), Affordable
Housing Solutions (AHS), and Sustainable Communities Reinvestment Partnership (SCRIP). The
financial activities of these affiliated entities are reported in the fiduciary funds of the
accompanying financial statements, as components of the Successor Agency.
San Bernardino Economic Development Corporation – SBEDC was incorporated in 1973 as a
nonprofit public benefit corporation. SBEDC’s purpose is to assist the EDA in promoting
development and redevelopment of properties within the City of San Bernardino (City). SBEDC
currently holds title to approximately 300 parcels of real property in the City pursuant to a March
2011 Funding Agreement with the EDA, under which the EDA transferred properties to SBEDC,
and SBEDC committed to develop the properties using funding provided by the EDA. These
parcels include 128 parcels for the Bice Property project, 74 parcels for the Arden Guthrie
Property project, and 5 parcels for the Carousel Mall (an approximately 650,000 square foot
indoor mall) which is owned and operated through the Carousel Mall LLC (a single-member limited
liability company with SBEDC as the single member). The funding agreement and the transfer of
the properties were validated in a judgment entered on July 27, 2011 by the Superior Court of the
State of California, County of San Bernardino, in an action brought by the EDA as Case No.
CIVDS1103893 (Validation Judgment). Subsequently, however, the State Controller’s Office
(SCO), as authorized by the June 2011 and June 2012 legislation providing for the dissolution of
redevelopment agencies, conducted a review of the transfers and issued a report dated March 6,
2013 (SCO’s “City of San Bernardino Economic Development Agency – Asset Transfer Review
Report.”). The SCO contended in the report that the transfers were unallowable and that the
Validation Judgment was not effective. The Successor Agency contested these contentions but
the matter remains unresolved and the ultimate disposition of the properties is undetermined.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-115-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
Affordable Housing Solutions – AHS was incorporated in 2005 as a nonprofit public benefit
corporation and was acquired by the EDA in 2009 to assist it in promoting economic development
and increasing the availability of low and moderate income housing in the City. AHS has
developed several successful affordable housing projects, including Phoenix Square and the
Magnolia Square Project. AHS is also the City’s contracted Neighborhood Stabilization Program
administrator as well as its property holding entity for the Home Investment Partnership Program
(HOME) and the Low and Moderate Income Housing Fund (LMHIF). AHS, like SBEDC, entered
into an agreement with the EDA in March 2011 for the receipt of properties and funding from the
EDA. This agreement, and property transfers made pursuant to it, were validated in the Validation
Judgment. As with SBEDC, the SCO disputed the validity of the EDA-AHS transactions.
Sustainable Communities Reinvestment Partnership – SCRIP was organized as a limited liability
company in 2009 to pursue renewable energy and sustainability projects in the City to help
improve energy efficiency and reduce greenhouse gas emissions in the region. SCRIP’s priorities
include the development of solar power systems and coordination with the City-owned geothermal
energy operation that serves governmental and private users in the City. In 2010, SCRIP
facilitated the construction of a 250kW photovoltaic solar power system on the roof of a city-
occupied building at 201 North “E” Street, San Bernardino. SCRIP also facilitated construction of a
448kW solar power system at the San Bernardino International Airport in conjunction with the
Inland Valley Development Agency.
A. Cash and Investments
Cash and investments as of June 30, 2012, are classified in the accompanying financial
statements as follows:
Cash and investments34,506,252$
Cash and investments with fiscal agents36,912,220
71,418,472$
B. Notes Receivable
Notes receivable represent loan agreements entered into between the EDA and unrelated non-
governmental entities as part of the EDA’s redevelopment activities. There are five notes ranging
in amount from approximately $11,000 to $609,000, and totaling $1.4 million. Collection of these
notes receivable is subject to the terms of each individual loan agreement.
C. Property Held for Resale
Property held for resale represents vacant land, commercial, and retail real estate acquired by the
EDA as part of its redevelopment activities. Over 55 properties, reported at cost basis ranging
from under $1,000 to $16.4 million each, and totaling $48.6 million, were transferred to the
Successor Agency upon dissolution of the redevelopment agency. These properties are being
held for disposition in accordance with applicable laws and regulations.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-116-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
D. Capital Assets
In accordance with the provisions of the Bill and the court case, all assets of the former
redevelopment agency (also identified as the “Economic Development Agency” or “EDA”) were
transferred to the Successor Agency upon dissolution on February 1, 2012. Capital assets
transferred to the Successor Agency and related capital asset activities for the five months ended
June 30, 2012 were as follows:
Transfer in
from EDA onBalance
Feb. 1, 2012AdditionsDeletionsJune 30, 2012
Capital assets, not being
depreciated:
Land11,631,572$ -$ -$ 11,631,572$
Total capital assets, not
being depreciated11,631,572 - - 11,631,572
Capital assets, being
depreciated:
Buildings and improvements16,508,665 - - 16,508,665
Machinery, vehicles and
equipment1,282,198 - - 1,282,198
Total capital assets,
being depreciated17,790,863 - - 17,790,863
Less accumulated
depreciation for:
Buildings and improvements(7,941,664) (185,082) - (8,126,746)
Machinery, vehicles and
equipment(1,025,251) (66,024) - (1,091,275)
Total accumulated
depreciation(8,966,915) (251,106) - (9,218,021)
Total capital assets,
being depreciated net8,823,948 (251,106) - 8,572,842
Capital assets, net20,455,520$ (251,106)$ -$ 20,204,414$
E. Short-Term Note Payable
The Economic Development Agency entered into a short-term loan agreement on May 3, 2010 in
the amount of $16,250,000. The terms of the note specified that interest-only payments equal to
the Prime Rate of interest be made monthly. The note was amended twice to extend its term. The
note ultimately matured on June 3, 2013, and the outstanding balance was paid off at that time.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-117-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities
In accordance with the provisions of the Bill and the court case, the obligations of the former
redevelopment agency (“Economic Development Agency” or “EDA”) became vested with the
funds established for the Successor Agency upon the date of dissolution, February 1, 2012. Tax
revenue is pledged to fund the debts of the Successor Agency Trust subject to the
reapportionment of such revenues as provided by the Bill. The debt of the Successor Agency
Trust as of June 30, 2012 was as follows:
Transfer in Amount
from EDA on BalanceDue Within
Feb. 1, 2012AdditionsReductionsJune 30, 2012One Year
Compensated absences (Note 12)423,405$ 125,236$ (268,827)$ 279,814$ 69,954$
OPEB obligation (Note 17)882,031 75,638 - 957,669 -
Participation agreement:
Yellow Freight 277,688 - (61,600) 216,088 -
Notes payable:
HUD Section 108:
Cinema project3,450,000 - - 3,450,000 435,000
Arden Guthrie7,500,000 - - 7,500,000 334,000
Reynolds506,637 - - 506,637 506,637
CMB note payable33,000,000 - - 33,000,000 -
Total notes payable44,456,637 - - 44,456,637 1,275,637
Tax allocation bonds:
Bonds 2010A6,505,000 - (170,000) 6,335,000 180,000
Bonds 2010B3,075,000 - (170,000) 2,905,000 160,000
Refunding Bonds, 2002A22,330,000 - (1,125,000) 21,205,000 1,190,000
Bonds 20023,020,000 - - 3,020,000 75,000
Refunding Bonds, 1998A10,025,000 - - 10,025,000 895,000
Refunding Bonds, 1998B4,965,000 - - 4,965,000 375,000
Refunding Bonds, 2005A42,610,000 - - 42,610,000 2,640,000
Refunding Bonds, 2005B16,015,000 - - 16,015,000 1,020,000
Taxable 200623,035,000 - (1,315,000) 21,720,000 1,390,000
Less: deferred charges(1,587,405) - 51,470 (1,535,935) (123,527)
Total tax allocation bonds129,992,595 - (2,728,530) 127,264,065 7,801,473
Certificates of Participation:
1999 Certificates of participation 5,880,000 - - 5,880,000 325,000
Total successor agency
long-term liabilities $ 181,912,356 $ 200,874 $ (3,058,957) $ 179,054,273 $ 9,472,064
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-118-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(1) Participation Agreements
Amount
Outstanding at
June 30, 2012
Yellow Freight
On January 22, 2001, the City of San Bernardino Economic Development
Agency (EDA) entered into a Property Owner Redevelopment Agreement
with Yellow Freight Systems. As part of the agreement, the EDA agreed to
provide public assistance to the offset costs associated with acquisition
and development of a freight terminal. Only EDA funds directly generated
by net tax increment amounts upon maturity of the note have been
pledged. Payments will be from time to time as funds are available. No
interest shall accrue on the note. $ 216,088
(2) Notes Payable
Amount
Outstanding at
June 30, 2012
HUD Section 108 Notes:
Cinema Project
The City of San Bernardino Economic Development Agency (EDA) and
MDA-San Bernardino Associates, LLC (MDA) entered into a HUD Section
108 Loan Agreement in December of 1998. The proceeds of the EDA
Loan, together with other sources of funds, were used and applied by MDA
for the payment of the costs of the development, construction,
improvement and financing of a multi-screen cinema complex and related
common area improvements. In order for the EDA to be able to make the
loan, the EDA entered into a Contract for Loan Guarantee Assistance, a
Master Fiscal Agency Agreement, and executed promissory notes with the
United States of America through its Department of Housing and Urban
Development pursuant to Section 108 of the Housing and Community
Development Act of 1974, as amended.
Interest payments are due semiannually on February 1 and August 1
through August 1, 2018. Principal payments are to be made annually on
August 1, and continue through August 1, 2018. $ 3,450,000
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-119-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(2) Notes Payable (continued)
Amount
Outstanding at
June 30, 2012
HUD Section 108 Notes (continued):
Arden-Guthrie Focused Neighborhood Revitalization Project
The City of San Bernardino entered into a Contract for Loan Guarantee
Assistance, a Master Fiscal Agency Agreement, and executed a
promissory note with the United States Department of Housing and Urban
Development pursuant to Section 108 of the Housing and Community
Development Act of 1974, as amended (Section 108 Loan). The proceeds
of the loan were then loaned to the EDA to be used for the Arden-Guthrie
Focused Neighborhood Revitalization Project, which affects approximately
20 acres of land located at the NWC of Arden Avenue and 20th Street
(Arden-Guthrie Site). Once the Arden-Guthrie Site is sold to a third party,
the proceeds of the sale are required to be paid to the City. All of the debt
service payments on the Section 108 Loan are the responsibility of the
City. The source of funds available for the repayment of the Loan is the
CDBG Program Revenue of the City.
During the initial phase interest is payable from the date of each advance
to the “Public Offering Date” and shall accrue on the unpaid principal
balance of the Note and shall be paid in quarterly installments on the first
day of February, May, August and November, “Interim Payment Date”. The
amount of interest payable on each Interim Payment Date will represent
interest accrued on the unpaid balance during the three month period
ending before the Interim Payment Date, in the case of the first Interim
Payment Date, the period from the date of this Note to the day before the
first Interim Payment Date. The initial interest rate will be set on the date of
such advance at a rate per annum equal to 20 basis points (.2%) above
the Applicable LIBOR Rate on such Reset Date.
Interest payments are due semiannually on February 1 and August 1 and
continue through August 1, 2025. Principal payments are due annually on
August 1, and continue through August 1, 2025. $ 7,500,000
Reynolds of San Bernardino, a California Corporation
On December 5, 2006, the former EDA entered into an Installment Note
(Note) for the purchase of property with Reynolds of San Bernardino, a
California Corporation, for $606,637. This Note was amended on
January 1, 2010. The Note matures on January 1, 2013. Interest only
payments of $2,494 per month at 4.93436% are due on the first day of the
month and continue through January 1, 2013. The Note is secured by a
deed of trust. The Note was fully repaid on May 8, 2013. 506,637
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-120-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(2) Notes Payable (continued)
Amount
Outstanding at
June 30, 2012
CMB Notes Payable
On October 5, 2009, the former EDA entered into a Loan Agreement
(Loan) for borrowing funds from CMB Infrastructure Investment Group III,
in the amount of $15,000,000, in accordance with the Employment-Based
Immigration Fifth Preference (EB-5) Immigrant Investor Visa Program. The
Note matures on September 30, 2015. Interest only payments are due on
the first day of each quarter at the rate of 5.25% per annum.
On September 1, 2010, the former EDA entered into a Loan Agreement
(Loan) for borrowing funds from CMB Infrastructure Investment Group V, in
the amount of $8,000,000, in accordance with the EB-5 Immigrant Investor
Visa Program. The Note matures on October 1, 2016. Interest only
payments are due on the first day of each quarter at the rate of 5.25% per
annum.
On March 1, 2011, the former EDA entered into a Loan Agreement (Loan)
for borrowing funds from CMB Infrastructure Investment Group VI-C, in the
amount of $10,000,000, in accordance with the EB-5 Immigrant Investor
Visa Program. The Note matures on January 1, 2018. Interest only
payments are due on the first day of each quarter at the rate of 5.25% per
annum.
As of June 30,2012, $33,000,000 has been drawn against the Loans. 33,000,000
Total notes payable $ 44,456,637
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-121-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(2) Notes Payable (continued)
Future debt service requirements for notes payable outstanding as of June 30, 2012 are as
follows:
Year ending
June 30,PrincipalInterestTotal
20131,275,637$ 2,399,178$ 3,674,815$
2014804,000 2,335,206 3,139,206
2015844,000 2,280,787 3,124,787
201615,914,000 1,828,592 17,742,592
20178,964,000 1,162,053 10,126,053
2018 - 202213,455,000 1,735,391 15,190,391
2023 - 20263,200,000 458,243 3,658,243
Totals44,456,637$ 12,199,450$ 56,656,087$
Note: The amounts above are scheduled payments in accordance with the loan agreements.
Payments after June 30, 2012 were impacted by the City’s bankruptcy (see note 2).
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-122-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(3) Tax Allocation Bonds
Tax Allocation Bonds, Series 2010A
In December 2010, the San Bernardino Joint Powers Financing Authority issued $7,065,000 in
tax allocation bonds to finance certain redevelopment activities of the 4th Street Corridor
project, to fund a reserve fund for the bonds, fund the interest account, and pay all costs of
issuance related to the bonds.
The Series 2010A bonds consist of term bonds of $7,065,000 maturing from 2011 to 2030 in
annual installments ranging from $170,000 to $655,000. Term bonds of $740,000 are due in
2015, term bonds of $1,515,000 are due in 2021, and term bonds of $4,250,000 are due in
2030. Interest is payable semi-annually on April 1 and October 1 at rates ranging from 3.5% to
9.3% per annum.
The term bonds maturing on April 2015 are subject to mandatory prepayment, on each April 1,
commencing on April 1, 2012 through April 1, 2015. Term bonds maturing on April 1, 2021, are
subject to mandatory prepayment, on each April 1, commencing on April 1, 2016 through
April 1, 2021. Term bonds maturing on April 1, 2030, are subject to mandatory prepayment on
each April 1, commencing on April 1, 2022 through April 1, 2030.
The former EDA agreed to pay the Authority principal and interest payments solely from the
Tax Revenues from the Northwest Redevelopment Project Area.
A reserve account is required to be maintained in the amount of $706,500. The balance held in
the reserve account as of June 30, 2012 was $687,819. At June 30, 2012, $6,335,000 of the
bonds were outstanding.
Tax Allocation Bonds, Series 2010B
In January 2011, the San Bernardino Joint Powers Financing Authority issued $3,220,000 in
tax allocation bonds to finance certain redevelopment activities of the Northwest project area,
to fund a reserve fund for the bonds, fund the interest account, and pay all costs of issuance of
the bonds.
The Series 2010B bonds consist of term bonds of $1,085,000 maturing from 2013 to 2020 in
annual installments ranging from $100,000 to $160,000, and term bonds of $1,820,000
maturing from 2021 to 2028 in annual installments ranging from $25,000 to $690,000. Interest
is payable semi-annually on April 1 and October 1 at rates ranging from 3.0% to 7.0% per
annum.
The term bonds maturing in April 2020 are subject to mandatory prepayment, on each April 1,
commencing on April 1, 2013 through April 1, 2020. Term bonds maturing on April 1, 2028, are
subject to mandatory prepayment, on each April 1, commencing on April 1, 2021 through
April 1, 2028.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-123-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(3) Tax Allocation Bonds (continued)
Tax Allocation Bonds, Series 2010B (continued)
The former EDA agreed to pay the Authority principal and interest payments solely from the
EDA's tax revenues from the Northwest Redevelopment Project Area.
A reserve account is required to be maintained in the amount of $322,000. The balance held in
the reserve account as of June 30, 2012 was $309,619. At June 30, 2012, $2,905,000 of the
bonds were outstanding.
Tax Allocation Refunding Bonds, Series 2002A
In April 2002, the San Bernardino Joint Powers Financing Authority issued $30,330,000 in
tax allocation refunding bonds to refund the 1995 Tax Allocation Bonds, to finance certain
redevelopment activities in the former EDA’s project areas, to fund a reserve fund for the
bonds, fund the interest account, and pay costs of issuance of the bonds. As a result, the
refunded bonds are considered to be defeased and the liability has been removed from the
financial statements.
The bonds consist of term bonds of $8,290,000 maturing from 2013 to 2018 in annual
installments ranging from $1,190,000 to $1,500,000, term bonds of $3,475,000 maturing
from 2019 to 2020 in annual installments ranging from $1,685,000 to $1,790,000, and term
bonds of $9,440,000 maturing from 2021 to 2026 in annual installments ranging from
$1,120,000 to $2,770,000. Interest is payable semi-annually on October 1 and April 1 at
rates ranging from 3.25% to 5.625% per annum.
The term bonds maturing on April 2018, are subject to mandatory prepayment, on each
April 1, commencing on April 1, 2013 through April 1, 2018. Term bonds maturing on April 1,
2020, are subject to mandatory prepayment, on April 1, 2019 and April 1, 2020. Term bonds
maturing on April 1, 2026, are subject to mandatory prepayment on each April 1,
commencing on April 1, 2021 through April 1, 2026.
The former EDA agreed to pay the Authority principal and interest payments solely from the
EDA’s surplus tax revenues from the Central City North, State College No. 4, Southeast
Industrial Park, Northwest, South Valle, Uptown and Tri-City Redevelopment Project Areas.
A reserve account is required to be maintained in the amount of $2,524,776. The balance
held in the reserve account as of June 30, 2012 was $2,685,267. At June 30, 2012,
$21,205,000 of the bonds were outstanding.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-124-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(3) Tax Allocation Bonds (continued)
Tax Allocation Bonds, Series 2002
In January 2002, the San Bernardino Joint Powers Financing Authority issued $3,635,000 in
tax allocation bonds to fund certain capital improvement projects in the Mount Vernon Project
Area, to fund a reserve fund, and to pay costs of issuance of the bonds. Interest on the
bonds is payable June 1, 2002 and semi-annually thereafter on June 1 and December 1 of
each year at rates ranging from 4.7% to 6.2% per annum. The bonds consist of term bonds
ranging in amounts from $285,000 to $2,025,000 maturing from 2006 to 2031. Principal
installments are payable annually on December 1 ranging in amount from $50,000 to
$445,000 through December 1, 2031.
Term bonds maturing on December 1, 2012 are subject to mandatory prepayment, on each
December 1, commencing on December 1, 2007 through December 1, 2012. Term bonds
maturing on December 1, 2021, are subject to mandatory prepayment on each December 1,
commencing on December 1, 2013 through December 1, 2021. Term bonds maturing on
December 1, 2031, are subject to mandatory prepayment, on each December 1,
commencing on December 1, 2022.
A reserve account is required to be maintained in the amount of $263,625. The balance held
in the reserve account as of June 30, 2012 was $263,658. At June 30, 2012, $3,020,000 of
the bonds were outstanding.
Refunding Bonds, Series 1998A
The $19,000,000 of tax allocation refunding bonds, issue of 1998, Series A, consist of serial
bonds with varying interest rates from 3.600% to 5.750% per annum. Interest is payable
semiannually on January 1 and July 1. Serial bonds mature annually on July 1 through
July 1, 2020.
The proceeds of the 1998 Series A Tax Allocation Refunding Bonds along with the proceeds
of the 1998 Series B Subordinated Tax Allocation Refunding Bonds were used to advance
refund $20,990,000 of outstanding Central City Project Tax Allocation Refunding Bonds,
1991 Series A and $4,005,000 of outstanding Central City Project Subordinated Tax
Allocation Bonds 1991 Series B.
The Series A bonds are not subject to optional redemption. The bonds are secured by a
pledge of property tax apportionments from the Central City Project Area. A reserve account
is required to be maintained in accordance with the bond documents. A reserve account is
required to be maintained in the amount of $1,433,720. The balance held in the reserve
account as of June 30, 2012 was $1,456,879. At June 30, 2012, $10,025,000 of the bonds
were outstanding.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-125-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(3) Tax Allocation Bonds (continued)
Subordinate Refunding Bonds, Series 1998B
The $8,590,000 of subordinated tax allocation refunding bonds, issue of 1998 Series B,
consists of $4,815,000 of serial bonds with varying interest rates from 4.500% to 5.875% per
annum and $3,775,000 of term bonds, bearing interest at 6.000% per annum. Interest is
payable semiannually on January 1 and July 1. Serial bonds mature annually on July 1
through July 1, 2014. Term bonds are due July 1, 2020 and shall be called and redeemed
before maturity from money deposited into the Term Bond Sinking Fund on July 1, 2015 to
July 1, 2020 without premium.
The proceeds of the 1998 Series B subordinated Tax Allocation Refunding Bonds along with
the 1998 Series A Tax Allocation Refunding Bonds were used to advance refund
$20,990,000 of outstanding Central City Project Tax Allocation Refunding Bonds, 1991
Series A and $4,005,000 of outstanding Central City Project Subordinated Tax Allocation
Bonds, 1991 Series B.
Bonds maturing on or after July 1, 2009 are subject to redemption before maturity, at the
option of the former EDA, from available funds, on any date after July 1, 2008. Such bonds
will be redeemed at the times and prices (expressed as a percentage of the principal amount
so redeemed) as set forth in the bond documents. The bonds are secured by a pledge of
property tax apportionments from the Central City Project Area. A reserve account is required
to be maintained in accordance with the bond documents. As of June 30, 2012, the reserve
requirement was $660,158 and the amount actually held in the reserve account was
$639,172. At June 30, 2012, $4,965,000 of the bonds were outstanding.
Tax Allocation Revenue Refunding Bonds, Series 2005A
In September 2005, the San Bernardino Joint Powers Financing Authority issued $55,800,000
in tax allocation refunding bonds to current refund $55,800,000 of the outstanding 1995A Tax
Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the
proceeds of the Authority’s Tax Allocation Refunding Bonds, Series 2005B (see following
section). As a result, the 1995A Tax Allocation Refunding Bonds are considered to be
defeased and the liability has been removed from the financial statements.
The Series 2005A bonds consist of serial bonds with varying interest rates from 5.15% to
5.75% per annum. Interest is payable semi-annually on April 1 and October 1. Serial bonds
mature annually on October 1 through October 1, 2025.
The Series 2005A bonds are not subject to optional redemption. The former EDA agreed to
pay the Authority principal and interest payments solely from the EDA's tax revenues from the
Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South
Valle, Uptown and Tri-City Redevelopment Project Areas.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-126-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(3) Tax Allocation Bonds (continued)
Tax Allocation Revenue Refunding Bonds, Series 2005A (continued)
A reserve account is required to be maintained in the amount of $5,014,937. The balance held
in the reserve account as of June 30, 2012 was $5,100,919. At June 30, 2012, $42,610,000 of
the bonds were outstanding.
The reacquisition price exceeded the net carrying amount of the old debt by $1,116,000. This
amount is being netted against the new debt and being amortized over the life of the new debt.
The advance refunding resulted in an increase in debt service payments over the next 20
years of $18,089 and resulted in an economic gain of $1,940,000.
Tax Allocation Revenue Refunding Bonds, Series 2005B
In September 2005, the San Bernardino Joint Powers Financing Authority issued $21,105,000
in tax allocation refunding bonds to current refund $21,105,000 of the outstanding 1995A Tax
Allocation Refunding Bonds. The remaining portion of the 1995A Bonds was refunded with the
proceeds of the Authority’s Tax Allocation Refunding Bonds, Series 2005A (see preceding
section). As a result, the 1995A Tax Allocation Refunding Bonds are considered to be
defeased and the liability has been removed from the financial statements.
The Series 2005B bonds consist of serial bonds with varying interest rates from 5.15% to
5.75% per annum. Interest is payable semi-annually on April 1 and October 1. Serial bonds
mature annually on October 1 through October 1, 2025.
The Series 2005B bonds are not subject to optional redemption. The former EDA agreed to
pay the Authority principal and interest payments solely from the EDA's tax revenues from the
Central City North, State College Project No. 4, Southeast Industrial Park, Northwest, South
Valle, Uptown and Tri-City Redevelopment Project Areas.
A reserve account is required to be maintained in the amount of $1,911,094. The balance held
in the reserve account as of June 30, 2012 was $1,942,801. At June 30, 2012, $16,015,000 of
the bonds were outstanding.
The reacquisition price exceeded the net carrying amount of the old debt by $422,100. This
amount is being netted against the new debt and being amortized over the life of the new debt.
Tax Allocation Bonds (20% Set Aside), Taxable Series 2006
In April 2006, the San Bernardino Joint Powers Financing Authority issued $28,665,000 in tax
allocation bonds to fund the acquisition, demolition and relocation of certain occupants of the
Central City North Project Area and provide for other redevelopment activities within the City of
San Bernardino, as provided in the Redevelopment Plan, fund the Reserve Fund, and pay
costs of issuance associated with the bonds.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-127-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(3) Tax Allocation Bonds (continued)
Tax Allocation Bonds (20% Set Aside), Taxable Series 2006 (continued)
The 2006 bonds consist of term bonds of $7,370,000 maturing from 2012 to 2016 in annual
installments ranging from $1,315,000 to $1,640,000, and term bonds of $15,665,000 maturing
from 2017 to 2027 in annual installments ranging from $1,015,000 to $1,850,000. Interest is
payable semi-annually on May 1 and November 1 at interest rates ranging from 5.20% to
6.15% per annum.
The bonds maturing on or prior to May 1, 2016, shall not be subject to call and redemption
prior to maturity. The bonds maturing on or after May 1, 2017, shall be subject to redemption
on or after May 1, 2016, and any date thereafter as a whole or in part by lot, at the option of
the former EDA, at par, plus accrued interest, without premium.
The former EDA agreed to pay the Authority principal and interest payments solely from the
EDA's Housing Revenues from the Central City North, Central City Merged, Central City West,
Mount Vernon, State College Project No. 4, Southeast Industrial Park, Northwest, South Valle,
Uptown, 40th Street and Tri-City Redevelopment Project Areas.
A reserve account is required to be maintained in the amount of $2,698,116. The balance held
in the reserve account as of June 30, 2012 was $2,634,491. At June 30, 2012, $21,720,000 of
the bonds were outstanding.
Future debt service requirements for tax allocation bonds outstanding as of June 30, 2012 are
as follows:
Year ending
June 30,PrincipalInterestTotal
20137,925,000$ 7,641,269$ 15,566,269$
20148,365,000 7,184,498 15,549,498
20158,825,000 6,697,439 15,522,439
20169,315,000 6,178,477 15,493,477
20179,835,000 5,626,185 15,461,185
2018 - 202252,000,000 18,614,391 70,614,391
2023 - 202728,800,000 6,111,941 34,911,941
2028 - 20323,735,000 618,776 4,353,776
128,800,000 58,672,976 187,472,976
Less: Deferred
Charges (1,535,935) - (1,535,935)
Totals 127,264,065$ 58,672,976$ 185,937,041$
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-128-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(4) Certificates of Participation
1999 Certificates of Participation
On September 23, 1999, the San Bernardino Joint Powers Financing Authority issued
$15,480,000 of Refunding Certificates of Participation (Certificates). The Certificates were
issued to retire $2,325,000 outstanding of Refunding Certificates of Participation (South
Valle Public Improvement Project) dated April 1, 1987, and $5,910,000 outstanding of
Certificates of Participation (1995 Police Station Financing Project) dated April 1, 1995, and
to provide funds for capital improvements (201 Building Projects).
The Certificates mature on September 1 of each year through September 1, 2024, in
amounts ranging from $330,000 to $1,080,000. The interest represented by the Certificates
is calculated on the basis of a 360-day year of twelve 30-day months, from September 1,
1999, at the rates per annum set forth in the bond documents and will represent the sum of
the portions of the lease payments designated as interest coming due during the six months
preceding each interest payment date. The interest rates will range approximately from
3.70% to 5.50% per annum.
The Certificates maturing on September 1, 2020 are subject to mandatory sinking fund
redemption in part on September 1 in each year on or after September 1, 2010, from the
principal components of the lease payments required to be paid by the City pursuant to the
Lease Agreements with respect to each such redemption date, at a redemption price equal to
the principal amount thereof to be redeemed, together with interest accrued thereon to the
date fixed for redemption, without premium, in accordance with the terms identified in the bond
documents. The Certificates maturing on September 1, 2024 are subject to mandatory sinking
fund redemption in part on September 1, 2021, from the principal components of the lease
payments required to be paid by the City pursuant to the Lease Agreements with respect to
each such redemption date, at a redemption price equal to the principal amount thereof to be
redeemed, together with interest accrued thereon to the date fixed for redemption, without
premium, in accordance with the terms identified in the bond documents.
The Certificates represent direct, undivided fractional interest in lease payments to be made
by the City under the lease agreements. A reserve fund is required to be maintained in an
amount equal to the maximum annual debt service. At June 30, 2012, the reserve requirement
was $1,147,000 and the amount actually held in the reserve account was $1,147,000. The
total outstanding balance of the Certificates at June 30, 2012 was $10,400,000, of which
$5,880,000 is reported as a long-term liability of the Successor Agency, which is the portion
of the Certificates that represent the South Valle Refunding and 201 Building Projects
portions. Repayments of these portions of the Certificates are funded from the
Redevelopment Property Tax Trust Fund, as a result of the dissolution of the redevelopment
agency.
CITY OF SAN BERNARDINO
Notes to Basic Financial Statements
Year Ended June 30, 2012
-129-
26. Successor Agency Trust for Assets of Former Redevelopment Agency (continued)
F. Long-Term Liabilities (continued)
(4) Certificates of Participation (continued)
Future debt service requirements for certificates of participation outstanding as of June 30,
2012 are as follows:
Year ending
June 30,PrincipalInterestTotal
2013325,000$ 572,000$ 897,000$
2014340,000 540,375 880,375
2015360,000 507,375 867,375
2016380,000 472,450 852,450
2017400,000 435,600 835,600
2018 - 20222,340,000 1,552,375 3,892,375
2023 - 20251,735,000 344,025 2,079,025
Totals5,880,000$ 4,424,200$ 10,304,200$
-130-
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-131-
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF SAN BERNARDINO
Required Supplementary Information
Defined Benefit Pension Plan
Public Employees Retirement System (PERS)
Schedule of Funding Progress
Year Ended June 30, 2012
-132-
Amounts in thousands
Unfunded
ActuarialActuarialActuarialFundedMarketFundedUAAL as
AccruedValue ofAccruedRatioValue ofRatioAnnuala % of
ActuarialLiabilityAssetsLiabilityBased onAssetsBased onCoveredCovered
Valuation(AAL)(AVA)(UAAL)AVA(MVA)MVAPayrollPayroll
Date(a)(b)(a) - (b)(b) / (a)(c)(c) / (a)(d)[(a)-(b)]/(d)
6/30/2007
Misc.321,501$ 301,929$ 19,572$ 93.9%350,362$ 109.0%49,541$ 39.5%
Safety452,834 401,023 51,811 88.6%467,301 103.2%44,581 116.2%
Totals774,335$ 702,952$ 71,383$ 90.8%817,663$ 105.6%94,122$ 75.8%
6/30/2008
Misc.350,911$ 323,746$ 27,165$ 92.3%330,625$ 94.2%52,567$ 51.7%
Safety482,224 426,485 55,739 88.4%437,394 90.7%48,292 115.4%
Totals833,135$ 750,231$ 82,904$ 90.0%768,019$ 92.2%100,859$ 82.2%
6/30/2009
Misc.391,360$ 337,732$ 53,628$ 86.3%246,645$ 63.0%51,175$ 104.8%
Safety527,185 445,549 81,636 84.5%326,595 62.0%48,800 167.3%
Totals918,545$ 783,281$ 135,264$ 85.3%573,240$ 62.4%99,975$ 135.3%
6/30/2010
Misc.406,904$ 351,048$ 55,856$ 86.3%274,500$ 67.5%50,284$ 111.1%
Safety552,316 464,836 87,480 84.2%365,169 66.1%48,004 182.2%
Totals959,220$ 815,884$ 143,336$ 85.1%639,669$ 66.7%98,288$ 145.8%
6/30/2011
Misc.427,258$ 366,217$ 61,041$ 85.7%324,464$ 75.9%49,853$ 122.4%
Safety587,025 487,333 99,692 83.0%434,464 74.0%46,293 215.4%
EDA18,125 15,503 2,622 85.5%14,008 77.3%2,537 103.4%
Totals1,032,408$ 869,053$ 163,355$ 84.2%772,936$ 74.9%98,683$ 165.5%
6/30/2012
Misc.446,677$ 379,291$ 67,386$ 84.9%316,291$ 70.8%47,802$ 141.0%
Safety614,962 506,240 108,722 82.3%422,275 68.7%44,163 246.2%
EDA18,720 16,116 2,604 86.1%13,724 73.3%1,152 226.0%
Totals1,080,359$ 901,647$ 178,712$ 83.5%752,290$ 69.6%93,117$ 191.9%
CITY OF SAN BERNARDINO
Required Supplementary Information
Other Post-Employment Benefit Plans
Schedule of Funding Progress
Year Ended June 30, 2012
-133-
Schedule of Funding Progress (in thousands)
Unfunded
ActuarialActuarialActuarialFundedUAAL as
AccruedValue ofAccruedRatioAnnuala % of
ActuarialLiabilityAssetsLiabilityBased onCoveredCovered
Valuation(AAL)(AVA)(UAAL)AVAPayrollPayroll
Date(a)(b)(a) - (b)(b) / (a)(c)[(a)-(b)]/(c)
City
6/30/200760,158$ -$ 60,158$ 0.0%79,135$ 76.02%
6/30/200961,371 - 61,371 0.0%78,951 77.73%
6/30/2012*48,819 - 48,819 0.0%73,320 66.58%
Water Department
6/30/200826,190$ -$ 26,190$ 0.0%12,755$ 205.33%
6/30/2010*28,676 - 28,676 0.0%12,619 227.24%
Economic Development Agency
6/30/2008*749$ -$ 749$ 0.0%1,763$ 42.48%
* Most recent actuarial valuation available
Schedule of Employers Contributions (in thousands)
City
YearAnnual
EndedRequiredAmountPercentage
June 30,ContributionContributedContributed
20106,084$ 1,116$ 18%
20116,660 1,201 18%
20127,293 1,513 21%
Water Department
YearAnnual
EndedRequiredAmountPercentage
June 30,ContributionContributedContributed
20102,307$ 670$ 29%
20112,505 676 27%
20122,729 9,040 331%
Economic Development Agency
YearAnnual
EndedRequiredAmountPercentage
June 30,ContributionContributedContributed
2010211$ 16$ 8%
2011211 16 8%
2012211 18 9%
CITY OF SAN BERNARDINO
Required Supplementary Information
Budgetary Comparison Schedule – General Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-134-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
REVENUES
Taxes:
Sales and use31,127,500$ 31,127,500$ 33,127,325$ 1,999,825$ 30,169,313$
Utility users22,500,000 22,500,000 22,127,129 (372,871) 22,089,888
Property27,375,000 27,375,000 27,524,214 149,214 26,965,590
Franchise3,376,300 3,376,300 3,268,800 (107,500) 3,164,830
Transient occupancy2,600,000 2,600,000 2,217,325 (382,675) 2,507,283
Property transfer500,000 500,000 344,520 (155,480) 531,343
Total taxes87,478,800 87,478,800 88,609,313 1,130,513 85,428,247
Licenses and permits:
Business registration6,000,000 6,000,000 6,222,666 222,666 5,996,091
Building permits500,000 500,000 723,657 223,657 489,493
Mechanical permits160,000 160,000 137,062 (22,938) 157,861
Onsite permits100,300 100,300 391,681 291,381 151,825
Onsite plan check fees35,000 35,000 155,629 120,629 106,559
Public works construction permit25,000 25,000 175,909 150,909 41,620
Paramedic/EMS subscription20,000 20,000 8,897 (11,103) 9,555
Street cut permit150,000 150,000 404,544 254,544 183,369
Other1,102,400 1,102,400 1,133,845 31,445 955,449
Total licenses and permits8,092,700 8,092,700 9,353,890 1,261,190 8,091,822
Fines and forfeitures:
General fines200,000 200,000 104,012 (95,988) 102,896
Parking citation1,150,000 1,150,000 729,249 (420,751) 936,594
Code admin citations550,000 550,000 145,399 (404,601) 259,499
Fire citation60,000 60,000 20,429 (39,571) 73,570
Other924,000 924,000 905,272 (18,728) 910,867
Total fines and forfeitures2,884,000 2,884,000 1,904,361 (979,639) 2,283,426
Investment income (loss):
Investment income (loss)200,000 200,000 (8,098) (208,098) (20,754)
Land and building rental607,000 607,000 641,053 34,053 602,981
Other30,000 30,000 28,945 (1,055) 27,494
Total investment income (loss)837,000 837,000 661,900 (175,100) 609,721
Intergovernmental:
Motor vehicle in lieu tax725,000 725,000 - (725,000) 946,143
Vehicle license fee in excess- - 104,424 104,424 -
Homeowners exemption130,000 130,000 123,434 (6,566) 122,188
State police training grants88,700 88,700 84,107 (4,593) 70,154
State grants600,000 600,000 343,580 (256,420) 828,155
Other2,165,200 2,165,200 2,258,206 93,006 5,752,224
Total intergovernmental3,708,900 3,708,900 2,913,751 (795,149) 7,718,864
Budgeted Amounts
continued
-135-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
Charges for services:
Plan check fees200,000$ 200,000$ 288,382$ 88,382$ 203,181$
Paramedics/emergency
medical services755,200 755,200 693,420 (61,780) 726,909
Board up/demolition assessment750,000 750,000 851,865 101,865 1,022,795
Storm drain utility fee265,000 265,000 235,392 (29,608) 249,723
Weed abatement175,000 175,000 217,102 42,102 168,804
Planning development projects200,000 200,000 205,691 5,691 182,460
Sale of photos15,000 15,000 6,222 (8,778) 9,844
Alarm system fee100,000 100,000 61,409 (38,591) 67,231
Engineering fees50,000 50,000 14,189 (35,811) 57,934
Miscellaneous police receipts900,000 1,089,000 1,052,072 (36,928) 1,183,914
Swimming pool fees51,000 51,000 78,634 27,634 59,942
Other charges3,256,100 3,256,100 3,765,558 509,458 3,491,078
Total charges for services6,717,300 6,906,300 7,469,936 563,636 7,423,815
Other revenues:
Off track betting100,000 100,000 76,238 (23,762) 78,547
Miscellaneous receipts895,300 895,300 192,810 (702,490) 641,302
Other revenues3,651,900 3,651,900 4,310,132 658,232 3,621,748
Total other revenues4,647,200 4,647,200 4,579,180 (68,020) 4,341,597
Total revenues114,365,900$ 114,554,900$ 115,492,331$ 937,431$ 115,897,492$
Budgeted Amounts
CITY OF SAN BERNARDINO
Required Supplementary Information
Budgetary Comparison Schedule – General Fund (continued)
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-136-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
EXPENDITURES
Current:
General government:
Mayor
Personnel salaries and benefits614,800$ 614,800$ 583,078$ 31,722$ 526,939$
Other149,800 149,800 170,486 (20,686) 117,499
Common council
Personnel salaries and benefits481,800 481,800 439,450 42,350 397,787
Other134,200 199,900 139,342 60,558 61,652
City clerk
Personnel salaries and benefits576,100 1,262,600 612,816 649,784 1,215,661
Other869,100 1,001,415 911,716 89,699 291,390
City treasurer
Personnel salaries and benefits180,600 180,600 185,930 (5,330) 183,561
Other29,800 29,800 23,600 6,200 18,963
City attorney
Personnel salaries and benefits2,671,200 2,671,200 2,578,541 92,659 2,662,022
Other354,800 1,770,650 1,526,006 244,644 1,433,503
City manager
Personnel salaries and benefits1,136,100 1,136,100 1,080,813 55,287 1,109,861
Other145,900 145,900 160,305 (14,405) 69,725
Human resources
Personnel salaries and benefits462,800 462,800 485,744 (22,944) 449,478
Other151,500 151,500 127,217 24,283 58,893
Finance
Personnel salaries and benefits2,161,500 1,525,000 2,148,955 (623,955) 1,342,504
Other356,900 238,285 431,939 (193,654) 560,374
Civil service
Personnel salaries and benefits288,400 288,400 279,278 9,122 270,826
Other77,000 77,000 75,973 1,027 15,696
Code compliance
Personnel salaries and benefits1,518,200 1,518,200 1,445,576 72,624 2,323,194
Other690,000 730,400 714,134 16,266 353,771
Facilities management
Personnel salaries and benefits1,297,400 1,247,400 1,219,219 28,181 1,356,584
Other816,000 898,500 756,394 142,106 743,278
Nondepartmental
Personnel salaries and benefits(100,000) (139,200) (386,957) 247,757 (428,015)
Other3,841,200 3,902,200 3,739,484 162,716 1,775,537
Total general government18,905,100 20,545,050 19,449,039 1,096,011 16,910,683
Public safety:
Police
Personnel salaries and benefits54,416,000 54,416,000 55,306,727 (890,727) 55,839,845
Other6,665,400 6,672,800 4,958,081 1,714,719 4,714,692
Fire
Personnel salaries and benefits28,338,600 28,391,800 31,647,977 (3,256,177) 30,870,141
Other2,589,000 2,620,000 1,438,751 1,181,249 1,307,951
Total public safety92,009,000 92,100,600 93,351,536 (1,250,936) 92,732,629
Budgeted Amounts
continued
-137-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
Streets:
Community development
Personnel salaries and benefits1,724,400$ 1,713,400$ 1,857,785$ (144,385)$ 2,134,852$
Other1,559,700 1,533,400 1,225,266 308,134 1,216,623
Public works
Personnel salaries and benefits1,219,700 1,269,700 1,053,651 216,049 1,104,375
Other3,694,500 3,730,500 3,725,955 4,545 3,862,417
Total streets8,198,300 8,247,000 7,862,657 384,343 8,318,267
Culture and recreation:
Park, recreation and community services
Personnel salaries and benefits2,570,900 2,570,900 2,482,377 88,523 2,913,406
Other2,546,000 2,604,400 3,079,434 (475,034) 2,154,122
Total culture and recreation5,116,900 5,175,300 5,561,811 (386,511) 5,067,528
Community services:
Planning, plan check and building
inspection
Personnel salaries and benefits1,683,300 1,694,300 1,679,579 14,721 1,189,696
Other284,700 322,200 246,609 75,591 54,833
Total community services1,968,000 2,016,500 1,926,188 90,312 1,244,529
Debt service:
Principal- - 1,119,577 (1,119,577) 1,623,576
Interest and fiscal charges- - 2,677,403 (2,677,403) 2,516,407
Total debt service- - 3,796,980 (3,796,980) 4,139,983
Total expenditures126,197,300 128,084,450 131,948,211 (3,863,761) 128,413,619
Budgeted Amounts
Deficiency of revenues
under expenditures(11,831,400) (13,529,550) (16,455,880) (2,926,330) (12,516,127)
OTHER FINANCING SOURCES (USES)
Sale of capital assets- - 124,160 124,160 2,546,549
Transfers in12,961,100 12,961,100 11,904,286 (1,056,814) 13,023,914
Transfers out(2,780,100) (2,780,100) (6,600,046) (3,819,946) (4,646,233)
Total other financing sources10,181,000 10,181,000 5,428,400 (4,752,600) 10,924,230
Net change in fund balances(1,650,400) (3,348,550) (11,027,480) (7,678,930) (1,591,897)
Fund balances, beginning of year(1,181,604) (1,181,604) (1,181,604) - 410,293
Fund balances (deficits), end of year(2,832,004)$ (4,530,154)$ (12,209,084)$ (7,678,930)$ (1,181,604)$
CITY OF SAN BERNARDINO
Required Supplementary Information
Budgetary Comparison Schedule – Economic Development Agency Special Revenue Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-138-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
REVENUES
Investment income62,800$ 62,800$ 82,076$ 19,276$ 157,055$
Intergovernmental12,396,040 12,396,040 2,592,368 (9,803,672) 11,316,634
Other- - 14,671 14,671 2,584,030
Total revenues12,458,840 12,458,840 2,689,115 (9,769,725) 14,057,719
EXPENDITURES
Current:
Economic development:
Personnel salaries and
benefits1,129,257 1,129,257 1,059,608 69,649 1,828,246
Other17,071,677 17,071,677 5,935,457 11,136,220 21,155,230
Debt service:
Principal2,693,000 2,693,000 - 2,693,000 -
Interest and fiscal charges28,538 28,538 531,185 (502,647) -
Total expenditures20,922,472 20,922,472 7,526,250 13,396,222 22,983,476
Excess (deficiency)
of revenues over
(under) expenditures(8,463,632) (8,463,632) (4,837,135) 3,626,497 (8,925,757)
OTHER FINANCING SOURCES
(USES)
Issuance of debt- - 18,000,000 18,000,000 -
Sale of property- - (5,455,317) (5,455,317) -
Transfers in8,463,632 8,463,632 4,410,862 (4,052,770) 9,617,873
Transfers out- - (7,992,735) (7,992,735) (2,697,282)
Total other financing
sources (uses)8,463,632 8,463,632 8,962,810 499,178 6,920,591
EXTRAORDINARY ITEM
Loss on dissolution of
economic development
agency- - (79,206,232) (79,206,232) -
Net change in fund balance- - (75,080,557) (75,080,557) (2,005,166)
Fund balance, beginning of
year, as restated75,080,557 75,080,557 75,080,557 - 77,085,723
Fund balance, end of year75,080,557$ 75,080,557$ -$ (75,080,557)$ 75,080,557$
Budgeted Amounts
CITY OF SAN BERNARDINO
Required Supplementary Information
Budgetary Comparison Schedule – Federal and State Grants Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-139-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Licenses and permits-$ 485$ 485$ -$
Investment income- 9,654 9,654 (55,895)
Intergovernmental1,633,800 15,762,698 14,128,898 9,013,197
Other3,229,900 2,878,899 (351,001) 12,503
Total revenues4,863,700 18,651,736 13,788,036 8,969,805
EXPENDITURES
Current:
General government2,358,700 1,999,879 358,821 188,561
Public safety546,700 6,713,174 (6,166,474) 5,179,070
Streets322,900 385,716 (62,816) 25,141
Culture and recreation159,500 983,950 (824,450) 377,117
Community development1,415,900 3,850,086 (2,434,186) -
Communtiy service2,423,600 3,779,227 (1,355,627) 6,800,675
Debt service:
Principal- 472,182 (472,182) -
Interest and fiscal charges- 275,065 (275,065) -
Total expenditures7,227,300 18,459,279 (11,231,979) 12,570,564
Excess (deficiency) of revenues
over (under) expenditures(2,363,600) 192,457 2,556,057 (3,600,759)
OTHER FINANCING SOURCES
Sale of property- 83,000 83,000 -
Transfers in- 7,883,898 7,883,898 -
Total other financing sources- 7,966,898 7,966,898 -
Net change in fund balances(2,363,600) 8,159,355 10,522,955 (3,600,759)
Fund balance (deficit), beginning of
year, as previously stated(3,507,266) (3,507,266) - 93,493
Prior period adjustment- 3,972,214 3,972,214 -
Fund balance, beginning of year,
as restated464,948 464,948 - 93,493
Fund balance (deficit), end of year(1,898,652)$ 8,624,303$ 10,522,955$(3,507,266)$
CITY OF SAN BERNARDINO
Required Supplementary Information
Budgetary Comparison Schedule – Low and Moderate Income Housing Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-140-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income-$ 36,752$ 36,752$ -$
Other- 3,560 3,560 -
Total revenues- 40,312 40,312 -
EXPENDITURES
Current:
Community development- 6,002,494 (6,002,494) -
Total expenditures- 6,002,494 (6,002,494) -
Excess (deficiency) of revenues
over (under) expenditures- (5,962,182) (5,962,182) -
EXTRAORDINARY ITEM
Gain on dissolution of economic
development agency- 73,448,756 73,448,756 -
Net change in fund balance- 67,486,574 67,486,574 -
Fund balance, beginning of year- - - -
Fund balance, end of year -$ 67,486,574$67,486,574$-$
CITY OF SAN BERNARDINO
Notes to Required Supplementary Information
Year Ended June 30, 2012
-141-
1. Budgetary control and accounting
The City utilizes the following general procedures in establishing its annual budgets, as reflected
in the financial statements:
The annual budget adopted by the Common Council provides for the City's general operations,
and includes proposed expenditures and estimated revenues. The City Manager and City Council
are authorized to make the necessary changes to the budget to ensure adequate and proper
standards of services. During the year, supplemental budget appropriations in the General Fund
amounted to $1,887,150.
Following approval of the final budget by the Mayor and Common Council, budget transfers within
a department budget in an amount not to exceed $25,000 per transfer shall be approved or
disapproved according to established Finance policies and procedures and on forms approved by
the Finance Department, and with notice to the Director of Finance, and written notice to the
Mayor and Common Council, as long as the total department budget allocation is not increased
and as long as no transfers are approved into or out of budget allocation for personnel salary or
benefits. For purposes of this requirement, each fund other than the General Fund is considered
to be a separate department. The legal level of budgetary control is personnel salaries and
benefits versus other expenditures in each department (except for the federal and state grants
fund whose legal level of budgetary control is at the functional level).
The budget is formally integrated into the accounting system and employed as a managed control
device during the year for all funds.
Budgets for the governmental fund types are adopted on a basis consistent with generally
accepted accounting principles.
At fiscal year-end, operating budget appropriations lapse; however, incomplete capital
improvements, equipment and contractual appropriations can be carried over to the following
fiscal year.
Annual budgets for the following funds have not been adopted:
Special revenue funds:
Cable TV
Low and Moderate Income Housing (previously a component of the redevelopment agency)
Baseball Stadium
Debt service funds:
Assessment District #985
Capital projects funds:
Public Park Extension
CIEDB Street Construction
Assessment District #1015
-142-
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-143-
SUPPLEMENTARY SCHEDULES
CITY OF SAN BERNARDINO
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
-144-
SpecialDebtCapital
RevenueServiceProjects20122011
ASSETS
Cash and investments1,461,915$ 113,112$ 5,345,094$ 6,920,121$ 15,552,410$
Cash and investments with
fiscal agent- - - - 48,853
Receivables, net:
Accounts17,587 - - 17,587 24,495
Interest934 15 2,838 3,787 64,441
Special assessments- 297,125 - 297,125 333,839
Due from other governments1,052,694 - 779,665 1,832,359 2,285,583
Due from other funds6,470,104 - 14,425,031 20,895,135 15,151,687
Advances to other funds128,774 - 1,708,400 1,837,174 2,550,599
Other assets- - 214,671 214,671 214,671
Total assets9,132,008$ 410,252$22,475,699$32,017,959$ 36,226,578$
LIABILITIES AND FUND
BALANCES
Liabilities:
Accounts payable317,669$ -$ 854,846$ 1,172,515$ 2,160,779$
Due to other funds11,354 155,500 2,377,673 2,544,527 5,651,785
Retentions payable7,731 - 114,521 122,252 98,667
Deferred revenues310,222 297,125 391,303 998,650 653,924
Deposits10,516 6,725 16,869 34,110 10,516
Advances from other funds- 158,000 - 158,000 1,096,800
Due to other governments- - - - 21,595
Due to Successor Agency- - 900,000 900,000 -
Total liabilities657,492 617,350 4,655,212 5,930,054 9,694,066
Fund balances:
Restricted7,888,492 80,692 20,690,281 28,659,465 34,020,915
Committed589,180 - - 589,180 356,373
Assigned - - 79,971 79,971 118,462
Unassigned (3,156) (287,790) (2,949,765) (3,240,711) (7,963,238)
Total fund balances
(deficit)8,474,516 (207,098) 17,820,487 26,087,905 26,532,512
Total liabilities and
fund balances9,132,008$ 410,252$22,475,699$32,017,959$ 36,226,578$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-145-
SpecialDebtCapital
RevenueServiceProjects20122011
REVENUES
Taxes588,445$ 76,798$ 1,241,050$ 1,906,293$ 1,991,647$
Licenses and permits490,081 - 398,776 888,857 424,694
Impact fees- - 239,553 239,553 618,030
Fines and forfeitures68,686 - - 68,686 55,258
Investment income3,505 (8) (14,456) (10,959) 186,758
Intergovernmental revenues11,024,576 - 1,731,654 12,756,230 18,604,662
Charges for services4,691,731 - 164,033 4,855,764 5,462,900
Other69,873 - - 69,873 782,097
Total revenues16,936,897 76,790 3,760,610 20,774,297 28,126,046
EXPENDITURES
Current:
General government235,099 7,549 - 242,648 135,429
Public safety2,742,378 - 69,679 2,812,057 3,745,485
Streets3,566,101 - 4,965,538 8,531,639 16,090,280
Culture and recreation385,112 - 591,910 977,022 1,134,642
Community service2,262,203 - - 2,262,203 2,221,052
Debt service:
Principal1,109,082 50,000 86,396 1,245,478 1,212,350
Interest and fiscal charges142,106 13,746 68,079 223,931 270,594
Total expenditures10,442,081 71,295 5,781,602 16,294,978 24,809,832
Excess (deficiency) of
revenues over (under)
expenditures6,494,816 5,495 (2,020,992) 4,479,319 3,316,214
OTHER FINANCING
SOURCES (USES)
Issuance of debt- - - - 386,122
Transfers in4,125,003 - 219,833 4,344,836 2,195,904
Transfers out(8,539,345) - (729,417) (9,268,762) (9,472,850)
Total other financing
sources (uses)(4,414,342) - (509,584) (4,923,926) (6,890,824)
Net change in fund balances2,080,474 5,495 (2,530,576) (444,607) (3,574,610)
Fund balances (deficit), beginning
of year, as previously stated6,712,742 (212,593) 20,351,063 26,851,212 30,107,122
Prior period adjustment(318,700) - - (318,700) -
Fund balances (deficit), beginning
of year, as restated6,394,042 (212,593) 20,351,063 26,532,512 30,107,122
Fund balances (deficit),
end of year8,474,516$ (207,098)$ 17,820,487$ 26,087,905$ 26,532,512$
Totals
CITY OF SAN BERNARDINO
Nonmajor Special Revenue Funds
June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-146-
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are
restricted or committed to expenditure for specified purposes other than debt service or capital
projects. The City maintains the following Nonmajor Special Revenue Funds for the purposes
indicated:
Library
For the cost of operating the City's Library system from related revenues and ongoing General
Fund contributions.
Cemetery
For the cost of operating the City owned Cemetery from related revenues.
Cable TV
For the regulatory oversight of the City’s cable companies for franchise compliance, consumer
protection, and franchise renewal negotiations, as well as operating two access channels.
Asset Seizure
For the investigation, detection and prosecution of criminal activities. Funding is provided by
criminal assets seized under existing state and federal statutes.
Alternative Transportation
For receipt and disbursement of funds received per Transportation Development Act Article 3
(SB 821) of the Bikeway & Pedestrian Program and the State and Local Fiscal Assistance Act of
1972.
Animal Control
For control, care and housing of stray animals, licensing of animals and public education from
related revenues including licensing and ongoing General Fund contributions.
Traffic Congestion
For the receipt and disbursement of funds received under AB 2928 to be used for traffic
congestion relief projects.
Special Gas Tax
For the receipt of gasoline tax revenue paid to the City as a subvention from the State of
California. These funds are transferred to the General Fund to partially support maintenance
activities and to finance street construction projects as provided by State law.
Traffic Safety
For the recording of the City's share of California Vehicle Code fines collected by San Bernardino
County.
Sewerline Maintenance
For the cost of maintaining Sewer lines as paid for from a portion of Sewer revenues.
Sales and Road
For local street improvements as provided for by San Bernardino County Measure I Sales Tax.
continued
-147-
Baseball Stadium
For the maintenance of the minor league baseball stadium constructed by the City.
Soccer Field
For the operation of the San Bernardino Soccer Complex formerly operated by a non-profit
foundation.
Fire Station
For the operation and maintenance of the Verdemont Fire Station.
CITY OF SAN BERNARDINO
Combining Balance Sheet
Nonmajor Special Revenue Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
-148-
LibraryCemeteryCable TV
ASSETS
Cash and investments-$ -$ -$
Receivables, net:
Accounts631 265 -
Interest- 59 3
Due from other governments- - -
Due from other funds83,090 6,707 240,965
Advances to other funds- - -
Total assets83,721$ 7,031$ 240,968$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable6,275$ 6,396$ -$
Due to other funds- - -
Retentions payable- - -
Deferred revenues- - -
Deposits- - -
Total liabilities6,275 6,396 -
Fund balances:
Restricted77,446 635 240,968
Committed- - -
Unassigned - - -
Total fund balances (deficit)77,446 635 240,968
Total liabilities and fund balances83,721$ 7,031$ 240,968$
continued
-149-
AssetAlternativeAnimalTrafficSpecialTraffic
SeizureTransportationControlCongestionGas TaxSafety
-$ -$ -$ -$ -$ -$
- - 6,031 - - -
109 6 - - 26 -
32,408 65,350 36,355 - 578,211 80,999
1,111,482 2,742 225,229 - 292,412 -
- - - - - -
1,143,999$ 68,098$ 267,615$ -$ 870,649$ 80,999$
4,244$ 2,685$ 28,835$ -$ 57,648$ 69,645$
- - - - - 11,354
- - - - - -
- - - - - -
- - - - - -
4,244 2,685 28,835 - 57,648 80,999
1,139,755 65,413 - - 813,001 -
- - 238,780 - - -
- - - - - -
1,139,755 65,413 238,780 - 813,001 -
1,143,999$ 68,098$ 267,615$ -$ 870,649$ 80,999$
CITY OF SAN BERNARDINO
Combining Balance Sheet
Nonmajor Special Revenue Funds (continued)
June 30, 2012 (with comparative totals as of June 30, 2011)
-150-
SewerlineSales andBaseball
MaintenanceRoadStadium
ASSETS
Cash and investments1,461,915$ -$ -$
Receivables, net:
Accounts6,160 - -
Interest249 402 -
Due from other governments259,371 - -
Due from other funds- 3,822,035 -
Advances to other funds128,774 - -
Total assets1,856,469$ 3,822,437$ -$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable88,184$ 31,717$ -$
Due to other funds- - -
Retentions payable7,731 - -
Deferred revenues- - -
Deposits- - -
Total liabilities95,915 31,717 -
Fund balances:
Restricted1,760,554 3,790,720 -
Committed- - -
Unassigned - - -
Total fund balances (deficit)1,760,554 3,790,720 -
Total liabilities and fund balances1,856,469$ 3,822,437$ -$
continued
-151-
SoccerFire
FieldStation20122011
-$ -$ 1,461,915$ 4,060,289$
4,500 - 17,587 24,495
37 43 934 13,317
- - 1,052,694 1,403,005
367,903 317,539 6,470,104 1,924,285
- - 128,774 226,174
372,440$ 317,582$ 9,132,008$ 7,651,565$
22,040$ -$ 317,669$ 606,362$
- - 11,354 320,560
- - 7,731 -
- 310,222 310,222 320,085
- 10,516 10,516 10,516
22,040 320,738 657,492 1,257,523
- - 7,888,492 9,799,264
350,400 - 589,180 356,373
- (3,156) (3,156) (3,761,595)
350,400 (3,156) 8,474,516 6,394,042
372,440$ 317,582$ 9,132,008$ 7,651,565$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-152-
LibraryCemeteryCable TV
REVENUES
Taxes-$ -$ -$
Licenses and permits- - 240,940
Fines and forfeitures- - -
Investment income (loss)- (139) 28
Intergovernmental - - -
Charges for services32,099 16,916 -
Other33,115 - -
Total revenues65,214 16,777 240,968
EXPENDITURES
Current:
General government- - -
Public safety- - -
Streets- - -
Culture and recreation- - -
Community service2,090,055 172,148 -
Debt service:
Principal- - -
Interest and fiscal charges- - -
Total expenditures2,090,055 172,148 -
Excess (deficiency) of revenues
over (under) expenditures(2,024,841) (155,371) 240,968
OTHER FINANCING SOURCES (USES)
Transfers in2,066,000 430,362 -
Transfers out- - -
Total other financing sources (uses)2,066,000 430,362 -
Net change in fund balances41,159 274,991 240,968
Fund balances (deficit), beginning of
year, as previously stated36,287 44,344 -
Prior period adjustment- (318,700) -
Fund balances (deficit), beginning of
year, as restated36,287 (274,356) -
Fund balances (deficit), end of year77,446$ 635$ 240,968$
continued
-153-
AssetAlternativeAnimalTrafficSpecialTraffic
SeizureTransportationControlCongestionGas TaxSafety
-$ -$ -$ -$ -$ -$
- - 249,141 - - -
- - 68,686 - - -
(251) (27) - - 329 -
848,300 265,340 - - 5,842,290 1,143,798
- - 1,124,049 - - -
- 5,200 - - - -
848,049 270,513 1,441,876 - 5,842,619 1,143,798
- 235,099 - - - -
401,818 - 1,825,625 - - 514,935
- - - - 225,061 -
- - - - - -
- - - - - -
- - - - 1,109,082 -
- - - - 142,106 -
401,818 235,099 1,825,625 - 1,476,249 514,935
446,231 35,414 (383,749) - 4,366,370 628,863
- - 572,088 6,459 - 975,312
- (70,000) - - (4,165,000) (1,400,000)
- (70,000) 572,088 6,459 (4,165,000) (424,688)
446,231 (34,586) 188,339 6,459 201,370 204,175
693,524 99,999 50,441 (6,459) 611,631 (204,175)
- - - - - -
693,524 99,999 50,441 (6,459) 611,631 (204,175)
1,139,755$ 65,413$ 238,780$ -$ 813,001$ -$
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Special Revenue Funds (continued)
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-154-
SewerlineSales andBaseball
MaintenanceRoadStadium
REVENUES
Taxes-$ -$ -$
Licenses and permits- - -
Fines and forfeitures- - -
Investment income (loss)4,752 (749) -
Intergovernmental- 2,924,848 -
Charges for services3,135,460 - -
Other- - -
Total revenues3,140,212 2,924,099 -
EXPENDITURES
Current:
General government- - -
Public safety- - -
Streets2,293,836 1,047,204 -
Culture and recreation- - 15,042
Community service- - -
Debt service:
Principal- - -
Interest and fiscal charges- - -
Total expenditures2,293,836 1,047,204 15,042
Excess (deficiency) of revenues
over (under) expenditures846,376 1,876,895 (15,042)
OTHER FINANCING SOURCES (USES)
Transfers in- 18,990 55,792
Transfers out(1,510,900) (805,000) -
Total other financing sources (uses)(1,510,900) (786,010) 55,792
Net change in fund balances(664,524) 1,090,885 40,750
Fund balances (deficit), beginning of
year, as previously stated2,425,078 2,699,835 (40,750)
Prior period adjustment- - -
Fund balances (deficit), beginning of
year, as restated2,425,078 2,699,835 (40,750)
Fund balances (deficit), end of year1,760,554$ 3,790,720$ -$
continued
-155-
SoccerFire
FieldStation20122011
-$ 588,445$ 588,445$ 585,053$
- - 490,081 274,798
- - 68,686 55,258
(227) (211) 3,505 294,503
- - 11,024,576 10,197,452
383,207 - 4,691,731 4,311,368
31,558 - 69,873 59,031
414,538 588,234 16,936,897 15,777,463
- - 235,099 107,755
- - 2,742,378 3,175,865
- - 3,566,101 5,588,594
370,070 - 385,112 443,266
- - 2,262,203 2,221,052
- - 1,109,082 1,083,405
- - 142,106 171,261
370,070 - 10,442,081 12,791,198
44,468 588,234 6,494,816 2,986,265
- - 4,125,003 2,195,904
- (588,445) (8,539,345) (8,758,150)
- (588,445) (4,414,342) (6,562,246)
44,468 (211) 2,080,474 (3,575,981)
305,932 (2,945) 6,712,742 9,970,023
- - (318,700) -
305,932 (2,945) 6,394,042 9,970,023
350,400$ (3,156)$ 8,474,516$ 6,394,042$
Totals
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Library Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-156-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Intergovernmental30,000$ -$ (30,000)$ 70,052$
Charges for services40,000 32,099 (7,901) 37,911
Other37,200 33,115 (4,085) 37,237
Total revenues107,200 65,214 (41,986) 145,200
EXPENDITURES
Current:
Community service:
Personnel salaries and benefits1,542,4001,486,02056,380 1,449,511
Other663,900604,03559,865 633,223
Total expenditures2,206,300 2,090,055 116,245 2,082,734
Excess (deficiency) of revenues
over (under) expenditures(2,099,100) (2,024,841) 74,259 (1,937,534)
OTHER FINANCING SOURCES
Transfers in2,066,0002,066,000 - 1,937,534
Total other financing sources2,066,000 2,066,000 - 1,937,534
Net change in fund balance(33,100) 41,159 74,259 -
Fund balance, beginning of year36,287 36,287 - 36,287
Fund balance, end of year3,187$ 77,446$ 74,259$ 36,287$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Cemetery Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-157-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)10,000$ (139)$ (10,139)$ (1,693)$
Intergovernmental- - - 318,700
Charges for services17,500 16,916 (584) 22,038
Total revenues27,500 16,777 (10,723) 339,045
EXPENDITURES
Current:
Community service:
Personnel salaries and benefits109,000117,830(8,830) 112,913
Other54,10054,318(218) 25,405
Total expenditures163,100 172,148 (9,048) 138,318
Excess (deficiency) of revenues
over (under) expenditures(135,600) (155,371) (19,771) 200,727
OTHER FINANCING SOURCES
Transfers in134,400 430,362 295,962 -
Total other financing sources134,400 430,362 295,962 -
Net change in fund balance(1,200) 274,991 276,191 200,727
Fund balance (deficit), beginning of
year, as previously stated44,344 44,344 - (156,383)
Prior period adjustment- (318,700) (318,700) -
Fund balance (deficit), beginning of
year, as restated(274,356) (274,356) - (156,383)
Fund balance (deficit), end of year (275,556)$ 635$ 276,191$ 44,344$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Cable TV Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-158-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Licenses and permits-$ 240,940$ 240,940$ -$
Investment income- 28 28 -
Total revenues- 240,968 240,968 -
Net change in fund balance- 240,968 240,968 -
Fund balance, beginning of year- - - -
Fund balance, end of year-$ 240,968$ 240,968$ -$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Asset Seizure Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-159-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)9,200$ (251)$ (9,451)$ (2,498)$
Intergovernmental 340,000 848,300 508,300 680,089
Total revenues349,200 848,049 498,849 677,591
EXPENDITURES
Current:
Public safety:
Other501,677 401,818 99,859 824,003
Total expenditures501,677 401,818 99,859 824,003
Net change in fund balance(152,477) 446,231 598,708 (146,412)
Fund balance, beginning of year693,524 693,524 - 839,936
Fund balance, end of year541,047$ 1,139,755$598,708$ 693,524$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Alternative Transportation Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-160-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)1,000$ (27)$ (1,027)$ (134)$
Intergovernmental240,000 265,340 25,340 225,913
Other5,200 5,200 - 5,200
Total revenues246,200 270,513 24,313 230,979
EXPENDITURES
Current:
General government:
Personnel salaries and benefits85,70073,88311,817 82,238
Other171,800161,21610,584 25,517
Total expenditures257,500 235,099 22,401 107,755
Excess (deficiency) of revenues
over (under) expenditures(11,300) 35,414 46,714 123,224
OTHER FINANCING SOURCES (USES)
Transfers out(70,000) (70,000) - (70,000)
Total other financing sources (uses)(70,000) (70,000) - (70,000)
Net change in fund balance(81,300) (34,586) 46,714 53,224
Fund balance, beginning of year99,999 99,999 - 46,775
Fund balance, end of year18,699$ 65,413$ 46,714$ 99,999$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Animal Control Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-161-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Licenses and permits300,500$ 249,141$ (51,359)$ 274,798$
Fines and forfeitures50,000 68,686 18,686 55,258
Charges for services1,152,500 1,124,049 (28,451) 1,005,505
Total revenues1,503,000 1,441,876 (61,124) 1,335,561
EXPENDITURES
Current:
Public safety:
Personnel salaries and benefits1,170,0001,152,86717,133 1,099,669
Other871,000672,758198,242 434,281
Total expenditures2,041,000 1,825,625 215,375 1,533,950
Excess (deficiency) of revenues
over (under) expenditures(538,000) (383,749) 154,251 (198,389)
OTHER FINANCING SOURCES
Transfers in449,100 572,088 122,988 197,070
Total other financing sources449,100 572,088 122,988 197,070
Net change in fund balance(88,900) 188,339 277,239 (1,319)
Fund balance, beginning of year50,441 50,441 - 51,760
Fund balance (deficit), end of year (38,459)$ 238,780$ 277,239$ 50,441$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Traffic Congestion Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-162-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ -$ -$ (1,092)$
Total revenues- - - (1,092)
EXPENDITURES
Current:
Streets:
Personnel salaries and benefits- - - 3,279
Other1,041,900 - 1,041,900 1,799,249
Total expenditures1,041,900 - 1,041,900 1,802,528
Excess (deficiency) of revenues
over (under) expenditures(1,041,900) - 1,041,900 (1,803,620)
OTHER FINANCING SOURCES
Transfers in- 6,459 6,459 -
Total other financing sources- 6,459 6,459 -
Net change in fund balance(1,041,900) 6,459 1,048,359 (1,803,620)
Fund balance (deficit), beginning of year(6,459) (6,459) - 1,797,161
Fund balance (deficit), end of year (1,048,359)$-$ 1,048,359$ (6,459)$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Special Gas Tax Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-163-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)5,000$ 329$ (4,671)$ (46)$
Intergovernmental 5,488,300 5,842,290 353,990 5,113,876
Total revenues5,493,300 5,842,619 349,319 5,113,830
EXPENDITURES
Current:
Streets:
Personnel salaries and benefits- 17,050(17,050) 16,748
Other2,242,900 208,0112,034,889 1,723,675
Debt service:
Principal- 1,109,082 (1,109,082) -
Interest and fiscal charges- 142,106 (142,106) -
Total expenditures2,242,900 1,476,249 766,651 1,740,423
Excess of revenues over
expenditures3,250,400 4,366,370 1,115,970 3,373,407
OTHER FINANCING SOURCES (USES)
Transfers out(4,165,000) (4,165,000) - (3,620,000)
Total other financing sources (uses)(4,165,000) (4,165,000) - (3,620,000)
Net change in fund balance(914,600) 201,370 1,115,970 (246,593)
Fund balance, beginning of year611,631 611,631 - 858,224
Fund balance (deficit), end of year (302,969)$ 813,001$ 1,115,970$ 611,631$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Traffic Safety Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-164-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Intergovernmental2,329,300$ 1,143,798$ (1,185,502)$ 1,794,478$
Total revenues2,329,300 1,143,798 (1,185,502) 1,794,478
EXPENDITURES
Current:
Public safety:
Other669,200 514,935 154,265 817,690
Total expenditures669,200 514,935 154,265 817,690
Excess of revenues over
expenditures1,660,100 628,863 (1,031,237) 976,788
OTHER FINANCING SOURCES (USES)
Transfers in- 975,312 975,312 -
Transfers out(1,400,000) (1,400,000) - (1,180,999)
Total other financing sources (uses)(1,400,000) (424,688) 975,312 (1,180,999)
Net change in fund balance260,100 204,175 (55,925) (204,211)
Fund balance (deficit), beginning of year(204,175) (204,175) - 36
Fund balance (deficit), end of year 55,925$ -$ (55,925)$ (204,175)$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Sewerline Maintenance Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-165-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ 4,752$ 4,752$ (506)$
Charges for services4,200,000 3,135,460 (1,064,540) 3,164,303
Total revenues4,200,000 3,140,212 (1,059,788) 3,163,797
EXPENDITURES
Current:
Streets:
Personnel salaries and benefits1,323,800 1,300,395 23,405 1,262,665
Other3,574,400 993,441 2,580,959 1,356,737
Total expenditures4,898,200 2,293,836 2,604,364 2,619,402
Excess (deficiency) of revenues
over (under) expenditures(698,200) 846,376 1,544,576 544,395
OTHER FINANCING SOURCES (USES)
Transfers out(1,510,900) (1,510,900) - (1,949,600)
Total other financing sources (uses)(1,510,900) (1,510,900) - (1,949,600)
Net change in fund balance(2,209,100) (664,524) 1,544,576 (1,405,205)
Fund balance, beginning of year2,425,078 2,425,078 - 3,830,283
Fund balance, end of year215,978$ 1,760,554$1,544,576$ 2,425,078$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Sales and Road Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-166-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)35,000$ (749)$ (35,749)$ (11,572)$
Intergovernmental 2,500,000 2,924,848 424,848 2,313,044
Total revenues2,535,000 2,924,099 389,099 2,301,472
EXPENDITURES
Current:
Streets:
Personnel salaries and benefits- 330,495(330,495) 297,858
Other5,946,500 716,7095,229,791 383,049
Total expenditures5,946,500 1,047,204 4,899,296 680,907
Excess (deficiency) of revenues
over (under) expenditures(3,411,500) 1,876,895 5,288,395 1,620,565
OTHER FINANCING SOURCES (USES)
Transfers in- 18,990 18,990 -
Transfers out(805,000) (805,000) - (1,350,000)
Total other financing sources (uses)(805,000) (786,010) 18,990 (1,350,000)
Net change in fund balance(4,216,500) 1,090,885 5,307,385 270,565
Fund balance, beginning of year2,699,835 2,699,835 - 2,429,270
Fund balance (deficit), end of year (1,516,665)$3,790,720$5,307,385$ 2,699,835$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Baseball Stadium Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-167-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ -$ -$ 363$
Total revenues- - - 363
EXPENDITURES
Current:
Culture and recreation:
Other- 15,042 (15,042) 21,434
Total expenditures- 15,042 (15,042) 21,434
Excess (deficiency) of revenues
over (under) expenditures- (15,042) (15,042) (21,071)
OTHER FINANCING SOURCES
Transfers in- 55,792 55,792 61,300
Total other financing sources- 55,792 55,792 61,300
Net change in fund balance- 40,750 40,750 40,229
Fund balance (deficit), beginning of year(40,750) (40,750) - (80,979)
Fund balance (deficit), end of year (40,750)$ -$ 40,750$ (40,750)$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Soccer Field Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-168-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)5,000$ (227)$ (5,227)$ 313,102$
Charges for services404,000 383,207 (20,793) 81,611
Other4,000 31,558 27,558 16,594
Total revenues413,000 414,538 1,538 411,307
EXPENDITURES
Current:
Culture and recreation:
Personnel salaries and benefits273,500 208,289 65,211 272,320
Other190,800 161,781 29,019 149,512
Total expenditures464,300 370,070 94,230 421,832
Excess (deficiency) of revenues
over (under) expenditures(51,300) 44,468 95,768 (10,525)
Net change in fund balance(51,300) 44,468 95,768 (10,525)
Fund balance, beginning of year305,932 305,932 - 316,457
Fund balance, end of year254,632$ 350,400$ 95,768$ 305,932$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Special Revenue Fund – Fire Station Fund
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-169-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Taxes567,800$ 588,445$ 20,645$ 585,053$
Investment income (loss)5,900 (211) (6,111) (1,421)
Total revenues573,700 588,234 14,534 583,632
EXPENDITURES
Current:
Public Safety- - - 222
Total expenditures- - - 222
Excess of revenues over
expenditures573,700 588,234 14,534 583,410
OTHER FINANCING SOURCES (USES)
Transfers out(573,700) (588,445) (14,745) (587,551)
Total other financing sources (uses)(573,700) (588,445) (14,745) (587,551)
Net change in fund balance- (211) (211) (4,141)
Fund balance (deficit), beginning of year(2,945) (2,945) - 1,196
Fund balance (deficit), end of year (2,945)$ (3,156)$ (211)$ (2,945)$
-170-
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CITY OF SAN BERNARDINO
Major and Nonmajor Debt Service Funds
June 30, 2012
-171-
Debt Service Funds are used to account for the accumulation of resources for, and payment of,
principal, interest and related costs of the long-term debt. The City maintains the following
Nonmajor Debt Service Funds for the purposes indicated:
NONMAJOR FUNDS
Assessment District #985
For the collection of assessments from property owners and for the remittance of such
assessments to bondholders as required by the Improvement Bond Act of 1915 and related
California State statutes for this district.
Assessment District #987
For the collection of the Verdemont infrastructure fees on developing properties used to repay
a loan from bondholders as required by the Improvement Bond Act of 1915 and related
California State statutes for this district.
Assessment District #1015
For the collection of assessments from property owners and for the remittance of such
assessments to the Successor Agency of the former redevelopment agency (Economic
Development Agency) and other City funds as required by the Improvement Bond Act of 1915
and related California State statutes for this district.
MAJOR FUND
Economic Development Agency Debt Service Fund
For the accumulation of resources for, and the payment of, principal, interest and related costs
of liabilities of the redevelopment agency. As of February 1, 2012, the EDA was dissolved as a
matter of State law, and ceased to exist. The activity reported in the Schedule of Revenues,
Expenditures, and Changes in Fund Balance – Budget and Actual is for the period from July 1,
2011 through January 31, 2012.
CITY OF SAN BERNARDINO
Combining Balance Sheet
Nonmajor Debt Service Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
-172-
Assessment Assessment Assessment
DistrictDistrictDistrict
#985#987#1015
ASSETS
Cash and investments68,280$ 19,127$ 25,705$
Cash and investments with fiscal agent- - -
Receivables, net:
Interest8 2 5
Special assessments- - 297,125
Due from other governments- - -
Total assets68,288$ 19,129$ 322,835$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable-$ -$ -$
Due to other funds- - 155,500
Deferred revenues- - 297,125
Deposits- 6,725 -
Advances from other funds- - 158,000
Due to other governments- - -
Total liabilities- 6,725 610,625
Fund balances (deficit):
Restricted68,288 12,404 -
Unassigned - - (287,790)
Total fund balances (deficit)68,288 12,404 (287,790)
Total liabilities and fund balances68,288$ 19,129$ 322,835$
continued
-173-
20122011
113,112$ 81,990$
- 48,853
15 169
297,125 333,839
- 15,421
410,252$ 480,272$
-$ 6,726$
155,500 133,905
297,125 333,839
6,725 -
158,000 196,800
- 21,595
617,350 692,865
80,692 318,178
(287,790) (530,771)
(207,098) (212,593)
410,252$ 480,272$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Debt Service Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-174-
Assessment Assessment Assessment
DistrictDistrictDistrict
#985#987#1015
REVENUES
Taxes-$ 12,772$ 64,026$
Investment income (loss)(18) (2) 12
Total revenues(18) 12,770 64,038
EXPENDITURES
Current:
General government- 1,500 6,049
Debt service:
Principal- 50,000 -
Interest and fiscal charges- 1,938 11,808
Total expenditures- 53,438 17,857
Excess (deficiency) of revenues
over (under) expenditures(18) (40,668) 46,181
Net change in fund balances(18) (40,668) 46,181
Fund balances (deficit), beginning of year68,306 53,072 (333,971)
Fund balances (deficit), end of year68,288$ 12,404$ (287,790)$
continued
-175-
20122011
76,798$ 108,660$
(8) (337)
76,790 108,323
7,549 27,674
50,000 45,000
13,746 28,515
71,295 101,189
5,495 7,134
5,495 7,134
(212,593) (219,727)
(207,098)$ (212,593)$
Totals
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Debt Service Fund – Assessment District #985
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-176-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Taxes-$ -$ -$ 14,902$
Investment income (loss)- (18) (18) (226)
Total revenues- (18) (18) 14,676
Net change in fund balance- (18) (18) 14,676
Fund balance, beginning of year68,306 68,306 - 53,630
Fund balance, end of year68,306$ 68,288$ (18)$ 68,306$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Debt Service Fund – Assessment District #987
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-177-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Taxes51,400$ 12,772$ (38,628)$ 22,836$
Investment income (loss)1,400 (2) (1,402) (75)
Total revenues52,800 12,770 (40,030) 22,761
EXPENDITURES
Current:
General government15,100 1,500 13,600 14,057
Debt Service:
Principal45,000 50,000 (5,000) 45,000
Interest and fiscal charges5,600 1,938 3,662 5,619
Total expenditures65,700 53,438 12,262 64,676
Excess (deficiency) of revenues
over (under) expenditures(12,900) (40,668) (27,768) (41,915)
Net change in fund balance(12,900) (40,668) (27,768) (41,915)
Fund balance, beginning of year53,072 53,072 - 94,987
Fund balance, end of year40,172$ 12,404$ (27,768)$ 53,072$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Debt Service Fund – Assessment District #1015
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-178-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Taxes68,000$ 64,026$ (3,974)$ 70,922$
Investment income (loss)300 12 (288) (36)
Total revenues68,300 64,038 (4,262) 70,886
EXPENDITURES
Current:
General government8,000 6,049 1,951 13,617
Debt Service:
Interest28,200 11,808 16,392 22,896
Total expenditures36,200 17,857 18,343 36,513
Excess (deficiency) of revenues
over (under) expenditures32,100 46,181 14,081 34,373
Net change in fund balance32,100 46,181 14,081 34,373
Fund balance (deficit), beginning of year(333,971) (333,971) - (368,344)
Fund balance (deficit), end of year (301,871)$ (287,790)$ 14,081$ (333,971)$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Major Debt Service Fund – Economic Development Agency Debt Service Fund
Seven Months Ended January 31, 2012
(with comparative totals for the year ended June 30, 2011)
-179-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
REVENUES
Investment income34,160$ 34,160$ 341,054$ 306,894$ 1,380,224$
Total revenues34,160 34,160 341,054 306,894 1,380,224
EXPENDITURES
Debt service:
Principal16,556,558 16,556,558 6,625,000 9,931,558 8,800,000
Interest and fiscal
charges161,714 161,714 5,511,240 (5,349,526) 9,442,637
Total expenditures16,718,272 16,718,272 12,136,240 4,582,032 18,242,637
Excess (deficiency) of
revenues over
(under) expenditures(16,684,112) (16,684,112) (11,795,186) 4,888,926 (16,862,413)
OTHER FINANCING
SOURCES
Issuance of debt31,445,986 31,445,986 - (31,445,986) 10,285,000
Transfers in17,491,739 17,491,739 9,895,266 (7,596,473) 16,408,299
Total other financing
sources48,937,725 48,937,725 9,895,266 (39,042,459) 26,693,299
EXTRAORDINARY ITEM
Loss on dissolution of
economic development
agency- - (36,773,859) (36,773,859) -
Net change in fund balance32,253,613 32,253,613 (38,673,779) (70,927,392) 9,830,886
Fund balance, beginning
of year38,673,779 38,673,779 38,673,779 - 28,842,893
Fund balance, end of year70,927,392$ 70,927,392$ -$ (70,927,392)$ 38,673,779$
Budgeted Amounts
CITY OF SAN BERNARDINO
Major and Nonmajor Capital Projects Funds
June 30, 2012
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Capital Projects Funds are used to account for the financial resources to be used for the
acquisition or construction of major capital facilities (other than those financed by Proprietary
Funds). The City maintains the following Nonmajor Capital Projects Funds for the purposes
indicated:
NONMAJOR FUNDS
Verdemont
For improvements in the Verdemont area from development fees collected.
Public Park Extension
For upgrades and improvements to parks from funds annually transferred from the General
Fund.
CIEDB Street Construction
For right-of-way acquisition, construction and improvements related to the City’s street system.
These projects are funded by various state and federal programs and matching City funds.
Fire Equipment Acquisition
For the acquisition of fire equipment from lease proceeds.
Park Construction Fee
For park land acquisition and development. Principal revenue sources are parks acquisition
and development fees collected from developers and state revenues for park development.
Cemetery Construction
For improvements of the City-owned cemetery from a portion of fees collected for services.
Sewerline Construction
For construction of sewer collection systems from development revenues.
Storm Drain Construction
For the construction of storm drain facilities throughout the City from development revenues.
Special Assessments
For assessment districts related to improvement, construction, and maintenance including
landscape maintenance, sewerline maintenance, and security paid by assessments on
properties.
Cultural Development Construction Fee
For collection of development fees used to pay for cultural improvements and activities.
Assessment District #1015
For construction of improvements from loans related to assessment district #1015.
Impact Fees
For the specific revenue sources that are legally restricted to fund expenditures for specific
purposes.
continued
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Street Construction
For right-of-way acquisition, construction, and improvements related to the City’s street system.
These projects are funded by various state and federal programs and matching City funds.
Public Improvements
For maintenance and construction of improvements around the Indian Bingo Casino located on
the reservation.
Prop 1b Local Street
Established to account for monies received from the State through Prop 1b. This proposition
provided $19 billion in bond funds for a variety of transportation projects, including $2 billion for
cities and counties for maintenance and improvements of local transportation facilities.
MAJOR FUND
Economic Development Agency Capital Projects Fund
For the financing and construction of projects of the redevelopment agency in accordance with
the State’s Community Redevelopment Law, as well as administrative expenditures incurred in
sustaining EDA activities. As of February 1, 2012, the EDA was dissolved as a matter of State
law, and ceased to exist. The activity reported in the Schedule of Revenues, Expenditures, and
Changes in Fund Balance – Budget and Actual is for the period from July 1, 2011 through
January 31, 2012.
CITY OF SAN BERNARDINO
Combining Balance Sheet
Nonmajor Capital Projects Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
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Fire
Public ParkCIEDB StreetEquipment
VerdemontExtensionConstructionAcquisition
ASSETS
Cash and investments-$ -$ -$ -$
Receivables, net:
Interest32 - - -
Due from other governments- - - -
Due from other funds250,191 - - 87,471
Advances to other funds- - - -
Other assets- - - -
Total assets250,223$ -$ -$ 87,471$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable4,430$ -$ -$ 7,500$
Due to other funds- - - -
Retentions payable- - - -
Deferred revenues- - - -
Deposits- - - -
Advances from other funds- - - -
Due to Successor Agency- - - -
Total liabilities4,430 - - 7,500
Fund balances:
Restricted245,793 - - -
Assigned - - - 79,971
Unassigned - - - -
Total fund balances (deficit)245,793 - - 79,971
Total liabilities and fund balances250,223$ -$ -$ 87,471$
continued
-183-
Park Cultural
ConstructionCemeterySewerlineStorm DrainSpecialDevelopment
FeeConstructionConstructionConstructionAssessmentsConstruction Fee
-$ -$ 2,629,231$ -$ 98,770$ -$
73 6 381 382 229 60
- - - - 6,822 -
364,294 52,328 - 2,938,225 - 439,324
- - 79,000 - - -
- - 214,671 - - -
364,367$ 52,334$ 2,923,283$ 2,938,607$ 105,821$ 439,384$
192,016$ -$ 281,705$ 117,136$ 91,652$ -$
- - - - - -
50,889 - 14,053 12,804 - -
- - - - - -
- - - - 16,869 -
- - - - - -
- - - - - -
242,905 - 295,758 129,940 108,521 -
121,462 52,334 2,627,525 2,808,667 - 439,384
- - - - - -
- - - - (2,700) -
121,462 52,334 2,627,525 2,808,667 (2,700) 439,384
364,367$ 52,334$ 2,923,283$ 2,938,607$ 105,821$ 439,384$
CITY OF SAN BERNARDINO
Combining Balance Sheet (continued)
Nonmajor Capital Projects Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
-184-
Assessment
DistrictStreet
#1015Impact FeesConstruction
ASSETS
Cash and investments33,656$ 2,583,437$ -$
Receivables, net:
Interest4 1,201 -
Due from other governments- - 772,843
Due from other funds- 6,790,210 -
Advances to other funds- 1,629,400 -
Other assets- - -
Total assets33,660$ 11,004,248$ 772,843$
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable-$ 117,983$ 30,176$
Due to other funds- - 2,377,673
Retentions payable- - 20,756
Deferred revenues- - 391,303
Deposits- - -
Advances from other funds- - -
Due to Successor Agency- - 900,000
Total liabilities- 117,983 3,719,908
Fund balances:
Restricted33,660 10,886,265 -
Assigned - - -
Unassigned - - (2,947,065)
Total fund balances (deficit)33,660 10,886,265 (2,947,065)
Total liabilities and fund balances33,660$ 11,004,248$ 772,843$
continued
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PublicProp 1b
ImprovementsLocal Street20122011
-$ -$ 5,345,094$ 11,410,131$
141 329 2,838 50,955
- - 779,665 867,157
1,075,220 2,427,768 14,425,031 13,227,402
- - 1,708,400 2,324,425
- - 214,671 214,671
1,075,361$ 2,428,097$ 22,475,699$ 28,094,741$
-$ 12,248$ 854,846$ 1,547,691$
- - 2,377,673 5,197,320
- 16,019 114,521 98,667
- - 391,303 -
- - 16,869 -
- - - 900,000
- - 900,000 -
- 28,267 4,655,212 7,743,678
1,075,361 2,399,830 20,690,281 23,903,473
- - 79,971 118,462
- - (2,949,765) (3,670,872)
1,075,361 2,399,830 17,820,487 20,351,063
1,075,361$ 2,428,097$ 22,475,699$ 28,094,741$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Capital Projects Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-186-
PublicCIEDBFire
Park StreetEquipment
VerdemontExtensionConstructionAcquisition
REVENUES
Taxes-$ -$ -$ -$
Licenses and permits- - - -
Impact fees- - - -
Investment income (loss)(352) - - -
Intergovernmental - - - -
Charges for services- - - -
Other- - - -
Total revenues(352) - - -
EXPENDITURES
Current:
Public safety- - - 24,000
Streets7,529 - - -
Culture and recreation- - - -
Debt service:
Principal- - - -
Interest and fiscal charges- - - -
Total expenditures7,529 - - 24,000
Excess (deficiency) of revenues
over (under) expenditures(7,881) - - (24,000)
OTHER FINANCING SOURCES (USES)
Issuance of debt- - - -
Transfers in- - 9,049 -
Transfers out- (4,491) - (10,000)
Total other financing sources
(uses)- (4,491) 9,049 (10,000)
Net change in fund balances(7,881) (4,491) 9,049 (34,000)
Fund balances (deficit), beginning
of year253,674 4,491 (9,049) 113,971
Fund balances (deficit), end of year245,793$ -$ -$ 79,971$
continued
-187-
Park Cultural
ConstructionCemeterySewerlineStorm DrainSpecialDevelopment
FeeConstructionConstructionConstructionAssessmentsConstruction Fee
-$ -$ -$ -$ 1,241,050$ -$
- - - - - 398,776
- - - - - -
(568) (37) 2,791 (2,351) (2,225) (166)
- - - - - -
- 40 119,698 44,069 226 -
- - - - - -
(568) 3 122,489 41,718 1,239,051 398,610
- - - - - -
- - 859,695 346,079 1,564,995 -
545,644 - - - - -
- - - - - -
- - - - - -
545,644 - 859,695 346,079 1,564,995 -
(546,212) 3 (737,206) (304,361) (325,944) 398,610
- - - - - -
- - - - 200,000 -
- - (225,000) (132,700) (226) (357,000)
- - (225,000) (132,700) 199,774 (357,000)
(546,212) 3 (962,206) (437,061) (126,170) 41,610
667,674 52,331 3,589,731 3,245,728 123,470 397,774
121,462$ 52,334$ 2,627,525$ 2,808,667$ (2,700)$ 439,384$
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
(continued)
Nonmajor Capital Projects Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-188-
AssessmentImpactStreet
District #1015FeesConstruction
REVENUES
Taxes-$ -$ -$
Licenses and permits- - -
Impact fees- 239,553 -
Investment income (loss)(23) (7,366) -
Intergovernmental- - 1,731,654
Charges for services- - -
Other- - -
Total revenues(23) 232,187 1,731,654
EXPENDITURES
Current:
Public safety- 45,679 -
Streets- 699,453 1,016,896
Culture and recreation- 46,266 -
Debt service:
Principal- 86,396 -
Interest and fiscal charges- 68,079 -
Total expenditures- 945,873 1,016,896
Excess (deficiency) of revenues
over (under) expenditures(23) (713,686) 714,758
OTHER FINANCING SOURCES (USES)
Issuance of debt- - -
Transfers in- 10,784 -
Transfers out- - -
Total other financing sources
(uses)- 10,784 -
Net change in fund balances(23) (702,902) 714,758
Fund balances (deficit), beginning
of year33,683 11,589,167 (3,661,823)
Fund balances (deficit), end of year 33,660$ 10,886,265$ (2,947,065)$
continued
-189-
PublicProp 1b
ImprovementsLocal Street20122011
-$ -$ 1,241,050$ 1,297,934$
- - 398,776 149,896
- - 239,553 618,030
(891) (3,268) (14,456) (107,408)
- - 1,731,654 8,407,210
- - 164,033 1,151,532
- - - 723,066
(891) (3,268) 3,760,610 12,240,260
- - 69,679 569,620
57,746 413,145 4,965,538 10,501,686
- - 591,910 691,376
- - 86,396 83,945
- - 68,079 70,818
57,746 413,145 5,781,602 11,917,445
(58,637) (416,413) (2,020,992) 322,815
- - - 386,122
- - 219,833 -
- - (729,417) (714,700)
- - (509,584) (328,578)
(58,637) (416,413) (2,530,576) (5,763)
1,133,998 2,816,243 20,351,063 20,356,826
1,075,361$ 2,399,830$ 17,820,487$ 20,351,063$
Totals
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Verdemont
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-190-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ (352)$ (352)$ (1,949)$
Total revenues - (352) (352) (1,949)
EXPENDITURES
Current:
Streets239,200 7,529 231,671 468,933
Total expenditures239,200 7,529 231,671 468,933
Excess (deficiency) of
revenues over (under)
expenditures(239,200) (7,881) 231,319 (470,882)
Net change in fund balance(239,200) (7,881) 231,319 (470,882)
Fund balance, beginning of year253,674 253,674 - 724,556
Fund balance, end of year14,474$ 245,793$ 231,319$ 253,674$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Public Park Extension
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-191-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ -$ -$ (6)$
Total revenues - - - (6)
EXPENDITURES - - - -
OTHER FINANCING SOURCES (USES)
Transfers out - (4,491) (4,491) -
Total other financing sources (uses)- (4,491) (4,491) -
Net change in fund balance- (4,491) (4,491) (6)
Fund balance, beginning of year4,491 4,491 - 4,497
Fund balance, end of year4,491$ -$ (4,491)$ 4,491$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – CIEDB Street Construction
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-192-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES -$ -$ -$ -$
EXPENDITURES - - - -
OTHER FINANCING SOURCES
Issuance of debt- - - 386,122
Transfers in- 9,049 9,049 -
Total other financing sources- 9,049 9,049 386,122
Net change in fund balance- 9,049 9,049 386,122
Fund (deficit), beginning of year(9,049) (9,049) - (395,171)
Fund balance (deficit), end of year (9,049)$ -$ 9,049$ (9,049)$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Fire Equipment Acquisition
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-193-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES -$ -$ -$ -$
EXPENDITURES
Current:
Public safety:
Personnel salaries and
benefits- - - 18,000
Other58,500 24,000 34,500 -
Total expenditures58,500 24,000 34,500 18,000
Excess (deficiency) of
revenues over (under)
expenditures(58,500) (24,000) 34,500 (18,000)
OTHER FINANCING SOURCES (USES)
Transfers out- (10,000) (10,000) -
Total other financing sources (uses)- (10,000) (10,000) -
Net change in fund balance(58,500) (34,000) 24,500 (18,000)
Fund balance, beginning of year113,971 113,971 - 131,971
Fund balance, end of year55,471$ 79,971$ 24,500$ 113,971$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Park Construction Fee
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-194-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)5,000$ (568)$ (5,568)$ (3,543)$
Intergovernmental- - - 1,292
Charges for services1,120,800 - (1,120,800) 723,773
Other336,000 - (336,000) -
Total revenues1,461,800 (568) (1,462,368) 721,522
EXPENDITURES
Current:
Culture and recreation:
Personnel salaries and
benefits- 5,598(5,598) 1,192
Other2,049,600 540,046 1,509,554 632,267
Total expenditures2,049,600 545,644 1,503,956 633,459
Excess (deficiency) of
revenues over (under)
expenditures(587,800) (546,212) 41,588 88,063
Net change in fund balance(587,800) (546,212) 41,588 88,063
Fund balance, beginning of year667,674 667,674 - 579,611
Fund balance, end of year79,874$ 121,462$ 41,588$ 667,674$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Cemetery Construction
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-195-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)1,000$ (37)$ (1,037)$ (221)$
Charges for services500 40 (460) 260
Total revenues1,500 3 (1,497) 39
EXPENDITURES - - - -
Net change in fund balance1,500 3 (1,497) 39
Fund balance, beginning of year52,331 52,331 - 52,292
Fund balance, end of year53,831$ 52,334$ (1,497)$ 52,331$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Sewerline Construction
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-196-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)60,000$ 2,791$ (57,209)$ (8,557)$
Charges for services100,000 119,698 19,698 152,813
Total revenues160,000 122,489 (37,511) 144,256
EXPENDITURES
Current:
Streets:
Personnel salaries and
benefits- 57,804(57,804) 138,730
Other3,877,500 801,8913,075,609 324,606
Total expenditures3,877,500 859,695 3,017,805 463,336
Excess (deficiency) of
revenues over (under)
expenditures(3,717,500) (737,206) 2,980,294 (319,080)
OTHER FINANCING SOURCES (USES)
Transfers out(225,000) (225,000) - (225,000)
Total other financing sources (uses)(225,000) (225,000) - (225,000)
Net change in fund balance(3,942,500) (962,206) 2,980,294 (544,080)
Fund balance, beginning of year3,589,731 3,589,731 - 4,133,811
Fund balance (deficit), end of year (352,769)$ 2,627,525$2,980,294$ 3,589,731$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Storm Drain Construction
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-197-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)40,000$ (2,351)$ (42,351)$ (14,722)$
Charges for services175,000 44,069 (130,931) 274,686
Total revenues215,000 41,718 (173,282) 259,964
EXPENDITURES
Current:
Streets:
Personnel salaries and
benefits- 141,136(141,136) 123,636
Other3,236,900 204,9433,031,957 273,594
Total expenditures3,236,900 346,079 2,890,821 397,230
Excess (deficiency) of
revenues over (under)
expenditures(3,021,900) (304,361) 2,717,539 (137,266)
OTHER FINANCING SOURCES (USES)
Transfers out(132,700) (132,700) - (132,700)
Total other financing sources (uses)(132,700) (132,700) - (132,700)
Net change in fund balance(3,154,600) (437,061) 2,717,539 (269,966)
Fund balance, beginning of year3,245,728 3,245,728 - 3,515,694
Fund balance, end of year91,128$ 2,808,667$2,717,539$ 3,245,728$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Special Assessments
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-198-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Taxes1,255,000$ 1,241,050$ (13,950)$ 1,297,934$
Investment income (loss)- (2,225) (2,225) (10,486)
Charges for services- 226 226 -
Total revenues1,255,000 1,239,051 (15,949) 1,287,448
EXPENDITURES
Current:
Streets:
Personnel salaries and
benefits997,900 1,055,929 (58,029) 1,109,365
Other274,700 509,066 (234,366) 416,420
Total expenditures1,272,600 1,564,995 (292,395) 1,525,785
Excess (deficiency) of
revenues over (under)
expenditures(17,600) (325,944) (308,344) (238,337)
OTHER FINANCING SOURCES (USES)
Transfers in200,000 200,000 - -
Transfers out- (226) (226) -
Total other financing
sources (uses)200,000 199,774 (226) -
Net change in fund balance182,400 (126,170) (308,570) (238,337)
Fund balance, beginning of year123,470 123,470 - 361,807
Fund balance (deficit), end of year 305,870$ (2,700)$ (308,570)$ 123,470$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Cultural Development Construction Fee
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-199-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Licenses and permits200,000$ 398,776$ 198,776$ 149,896$
Investment income (loss)15,000 (166) (15,166) (1,666)
Total revenues215,000 398,610 183,610 148,230
EXPENDITURES - - - -
Excess (deficiency) of
revenues over (under)
expenditures215,000 398,610 183,610 148,230
OTHER FINANCING SOURCES (USES)
Transfers out(357,000) (357,000) - (357,000)
Total other financing sources (uses)(357,000) (357,000) - (357,000)
Net change in fund balance(142,000) 41,610 183,610 (208,770)
Fund balance, beginning of year397,774 397,774 - 606,544
Fund balance, end of year255,774$ 439,384$ 183,610$ 397,774$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Assessment District #1015
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-200-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ (23)$ (23)$ (132)$
Total revenues- (23) (23) (132)
EXPENDITURES - - - -
Net change in fund balance- (23) (23) (132)
Fund balance, beginning of year33,683 33,683 - 33,815
Fund balance, end of year33,683$ 33,660$ (23)$ 33,683$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Impact Fees
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-201-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Impact fees345,000$ 239,553$ (105,447)$ 618,030$
Investment income (loss)108,500(7,366) (115,866) (46,575)
Charges for services5,000- (5,000) -
Other340,000- (340,000) -
Total revenues798,500 232,187 (566,313) 571,455
EXPENDITURES
Current:
Public safety309,000 45,679 263,321 551,620
Streets8,507,500 699,453 7,808,047 92,475
Culture and recreation62,000 46,266 15,734 57,917
Debt service:
Principal- 86,396 (86,396) 83,945
Interest and fiscal charges- 68,079 (68,079) 70,818
Total expenditures8,878,500 945,873 7,932,627 856,775
Excess (deficiency) of
revenues over (under)
expenditures(8,080,000) (713,686) 7,366,314 (285,320)
OTHER FINANCING SOURCES
Transfers in- 10,784 10,784 -
Total other financing
sources- 10,784 10,784 -
Net change in fund balance(8,080,000) (702,902) 7,377,098 (285,320)
Fund balance, beginning of year11,589,167 11,589,167 - 11,874,487
Fund balance, end of year 3,509,167$ 10,886,265$7,377,098$ 11,589,167$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Street Construction
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-202-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Intergovernmental21,138,500$ 1,731,654$ (19,406,846)$ 8,405,918$
Other5,286,800 - (5,286,800) 723,066
Total revenues26,425,300 1,731,654 (24,693,646) 9,128,984
EXPENDITURES
Current:
Streets:
Personnel salaries and
benefits- 87,625 (87,625) 109,399
Other22,824,700 929,271 21,895,429 6,442,649
Total expenditures22,824,700 1,016,896 21,807,804 6,552,048
Excess (deficiency) of
revenues over (under)
expenditures3,600,600 714,758 (2,885,842) 2,576,936
Net change in fund balance3,600,600 714,758 (2,885,842) 2,576,936
Fund balance (deficit), beginning
of year(3,661,823) (3,661,823) - (6,238,759)
Fund balance (deficit), end of year(61,223)$ (2,947,065)$(2,885,842)$ (3,661,823)$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Public Improvements
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-203-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ (891)$ (891)$ (5,646)$
Total revenues- (891) (891) (5,646)
EXPENDITURES
Current:
Streets:
Personnel salaries and
benefits- 2,834 (2,834) 55,636
Other881,000 54,912 826,088 589,094
Total expenditures881,000 57,746 823,254 644,730
Net change in fund balance(881,000) (58,637) 822,363 (650,376)
Fund balance, beginning of year1,133,998 1,133,998 - 1,784,374
Fund balance, end of year252,998$ 1,075,361$822,363$ 1,133,998$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Nonmajor Capital Projects Fund – Prop 1b Local Street
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-204-
FinalActual Variance withPrior Year
BudgetAmountsFinal BudgetActual
REVENUES
Investment income (loss)-$ (3,268)$ (3,268)$ (13,905)$
Total revenues- (3,268) (3,268) (13,905)
EXPENDITURES
Current:
Streets:
Personnel salaries and
benefits- 105,506 (105,506) 76,083
Other2,294,800 307,639 1,987,161 281,066
Total expenditures2,294,800 413,145 1,881,655 357,149
Net change in fund balance(2,294,800) (416,413) 1,878,387 (371,054)
Fund balance, beginning of year2,816,243 2,816,243 - 3,187,297
Fund balance, end of year521,443$ 2,399,830$1,878,387$ 2,816,243$
CITY OF SAN BERNARDINO
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual
Major Capital Projects Fund – Economic Development Agency Capital Projects Fund
Seven Months Ended January 31, 2012
(with comparative totals for the year ended June 30, 2011)
-205-
Actual Variance withPrior Year
Original FinalAmountsFinal BudgetActual
REVENUES
Taxes37,500,200$ 37,500,200$ 19,003,377$ (18,496,823)$ 36,476,721$
Investment income736,240 736,240 28,354 (707,886) 207,190
Lease4,956,143 4,956,143 2,049,151 (2,906,992) -
Intergovernmental310,000 310,000 5,000 (305,000) 1,803,836
Other538,500 538,500 489,844 (48,656) 1,205,232
Total revenues44,041,083 44,041,083 21,575,726 (22,465,357) 39,692,979
EXPENDITURES
Current:
Economic development:
Personnel salaries and benefits4,005,401 4,005,401 2,073,859 1,931,542 1,888,104
Other68,894,606 68,894,606 9,005,279 59,889,327 20,765,371
Debt service:
Principal- - 410,000 (410,000) 991,308
Interest and fiscal charges- - 497,390 (497,390) 1,516,221
Total expenditures72,900,007 72,900,007 11,986,528 60,913,479 25,161,004
Excess (deficiency) of
revenues over (under)
expenditures(28,858,924) (28,858,924) 9,589,198 38,448,122 14,531,975
OTHER FINANCING SOURCES
(USES)
Issuance of debt- - - - 12,500,000
Transfers in7,400,367 7,400,367 - (7,400,367) -
Transfers out(10,795,056) (10,795,056) (12,632,831) (1,837,775) (21,007,361)
Total other financing
sources (uses)(3,394,689) (3,394,689) (12,632,831) (9,238,142) (8,507,361)
EXTRAORDINARY ITEM
Loss on dissolution of economic
development agency- - (67,808,477) (67,808,477) -
Net change in fund balance(32,253,613) (32,253,613) (70,852,110) (38,598,497) 6,024,614
Fund balance, beginning of year,
as restated70,852,110 70,852,110 70,852,110 - 64,827,496
Fund balance, end of year38,598,497$ 38,598,497$ -$ (38,598,497)$ 70,852,110$
Budgeted Amounts
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CITY OF SAN BERNARDINO
Internal Service Funds
June 30, 2012
-207-
Internal Service Funds are used to account for activities and services performed for other
organizational units within the City. Charges to other City departments are made to support these
activities. The City maintains the following Internal Service Funds for the purposes indicated:
Unemployment Insurance
For administration of unemployment insurance claims paid to the Employment Development
Department of the State of California.
Workers’ Compensation
For administration of the City’s self insurance for worker’s compensation.
Liability Insurance
For administration of the City’s liability claims, combined self insurance and umbrella coverage
for liability.
Motorpool
For the maintenance and operating costs for the City’s fleet of vehicles.
Telephone Support
For the operation cost and acquisition of the City’s telephone communications systems.
Information Systems
For the acquisition and maintenance of the City’s computer and emergency communications
systems.
Utility
For the control and allocation of the City’s utility costs.
Central Services
For the provision of printing, duplication and postal services and operation of City Stores for
supply costs.
CITY OF SAN BERNARDINO
Combining Statement of Net Assets
Internal Service Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
-208-
UnemploymentWorkers'Liability
InsuranceCompensationInsuranceMotorpool
ASSETS
Current assets:
Cash and investments-$ -$ -$ -$
Cash and investments with
fiscal agent- - - -
Receivables:
Accounts- - 167 -
Interest- - 375 -
Other- - - -
Inventory- - - 216,381
Due from other governments- 62,488 - -
Due from other funds- - 1,689,495 250
Total current assets- 62,488 1,690,037 216,631
Noncurrent assets:
Intangible assets, net- - - -
Capital assets, net- - 78 973,606
Total noncurrent assets- - 78 973,606
Total assets- 62,488 1,690,115 1,190,237
LIABILITIES
Current liabilities:
Accounts payable- 201,602 36,528 280,361
Accrued liabilities- - - -
Due to other funds128,381 910,894 - 194,954
Advances from other funds- - - -
Claims and judgments payable -
current- 3,121,931 - -
Compensated absences - current- 93,603 3,986 116,618
Capital lease payable - current- - - 112,044
Due to New World - current - - - -
Facility lease payable - current- - - -
Total current liabilities128,381 4,328,030 40,514 703,977
Noncurrent liabilities:
Claims and judgments payable- 9,477,791 8,322,250 -
Compensated absences- 15,957 9,301 197,871
Capital lease payable- - - -
Due to New World- - - -
Facility lease payable- - - -
Total noncurrent liabilities- 9,493,748 8,331,551 197,871
Total liabilities128,381 13,821,778 8,372,065 901,848
NET ASSETS
Invested in capital assets,
net of related debt- - 78 861,562
Unrestricted (deficit)(128,381) (13,759,290) (6,682,028) (573,173)
Total net assets (deficit)(128,381)$ (13,759,290)$(6,681,950)$ 288,389$
continued
-209-
TelephoneInformationCentral
SupportSystemsUtilityServices20122011
-$ -$ -$ -$ -$ 25,055$
- - - - - 14,814
1,875 - - - 2,042 -
9 11 12 - 407 8,378
- - - - - 2,371
- - - - 216,381 331,538
10,496 2,640 - 481 76,105 738,591
218,626 400,976 404,569 - 2,713,916 4,463,157
231,006 403,627 404,581 481 3,008,851 5,583,904
- 5,103,931- - 5,103,931 5,698,564
241,579 695,541 354,088 - 2,264,892 3,061,265
241,579 5,799,472 354,088 - 7,368,823 8,759,829
472,585 6,203,099 758,669 481 10,377,674 14,343,733
64,744 124,201 1,085,023 4,114 1,796,573 1,112,006
- 69,662 - - 69,662 -
176,000 101,600 - 84,871 1,596,700 1,539,129
- 49,774 - - 49,774 127,774
- - - - 3,121,931 6,042,606
5,949 136,299 10,046 1,178 367,679 295,996
- - 64,774 - 176,818 549,200
- 513,540 - - 513,540 645,000
- - - - - 40,000
246,693 995,076 1,159,843 90,163 7,692,677 10,351,711
- - - - 17,800,041 14,099,413
13,881 257,392 23,442 2,749 520,593 544,827
- - 458,380 - 458,380 635,198
- 4,035,245 - - 4,035,245 4,486,987
- - - - - 85,000
13,881 4,292,637 481,822 2,749 22,814,259 19,851,425
260,574 5,287,713 1,641,665 92,912 30,506,936 30,203,136
241,579 1,250,687 (169,066) - 2,184,840 2,318,444
(29,568) (335,301) (713,930) (92,431) (22,314,102) (18,177,847)
212,011$ 915,386$ (882,996)$ (92,431)$ (20,129,262)$ (15,859,403)$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Revenues, Expenses, and Changes in Fund Net Assets
Internal Service Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-210-
UnemploymentWorkers'Liability
InsuranceCompensationInsuranceMotorpool
OPERATING REVENUES
Charges for services283,923$ 3,889,425$ 3,094,300$ 6,850,288$
Total operating revenues283,923 3,889,425 3,094,300 6,850,288
OPERATING EXPENSES
Cost of sales and services3,500 1,240,096 329,961 6,757,820
Claims expense262,100 4,744,286 1,732,363 -
Amortization expense- - - -
Depreciation- - 116 841,351
Total operating expenses265,600 5,984,382 2,062,440 7,599,171
Operating income (loss)18,323 (2,094,957) 1,031,860 (748,883)
NONOPERATING REVENUES
(EXPENSES)
Investment income- - (4,334) -
Interest expense- - - (18,773)
Miscellaneous income- - - 435,011
Total nonoperating revenues
(expenses)- - (4,334) 416,238
Income before transfers18,323 (2,094,957) 1,027,526 (332,645)
OTHER FINANCING SOURCES
(USES)
Transfers in- - - -
Transfers out- - (2,000,000) (9,774)
Total other financing
sources (uses)- - (2,000,000) (9,774)
Change in net assets18,323 (2,094,957) (972,474) (342,419)
Net assets (deficit), beginning
of year(146,704) (11,664,333) (5,709,476) 630,808
Net assets (deficit), end of year(128,381)$ (13,759,290)$(6,681,950)$ 288,389$
continued
-211-
TelephoneInformationCentral
SupportSystemsUtilityServices20122011
1,363,914$ 4,023,384$ 4,401,188$ 75,411$ 23,981,833$ 23,717,495$
1,363,914 4,023,384 4,401,188 75,411 23,981,833 23,717,495
1,037,492 3,466,718 4,919,080 117,977 17,872,644 16,793,905
- - - - 6,738,749 13,113,331
- 594,633 - - 594,633 247,763
91,050 251,883 117,785 - 1,302,185 1,996,552
1,128,542 4,313,234 5,036,865 117,977 26,508,211 32,151,551
235,372 (289,850) (635,677) (42,566) (2,526,378) (8,434,056)
98 121 132 - (3,983) (19,166)
- (131,460) (26,663) - (176,896) (46,845)
9,443 2,718 - - 447,172 436,043
9,541 (128,621) (26,531) - 266,293 370,032
244,913 (418,471) (662,208) (42,566) (2,260,085) (8,064,024)
- - - - - 63,800
- - - - (2,009,774) (38,564)
- - - - (2,009,774) 25,236
244,913 (418,471) (662,208) (42,566) (4,269,859) (8,038,788)
(32,902) 1,333,857 (220,788) (49,865) (15,859,403) (7,820,615)
212,011$ 915,386$ (882,996)$ (92,431)$ (20,129,262)$ (15,859,403)$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Cash Flows
Internal Service Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-212-
UnemploymentWorkers'Liability
InsuranceCompensationInsuranceMotorpool
Cash flows from operating
activities:
Cash received from user
departments283,923$ 3,836,937$ 3,094,300$ 6,850,554$
Cash payments to employees and
suppliers for goods and services(3,500) (1,233,620) (379,744) (6,592,967)
Cash payments for claims and
insurance(262,100) (2,553,013) (3,143,683) -
Cash received for other activities- - - 435,011
Net cash provided by (used
for) operating activities18,323 50,304 (429,127) 692,598
Cash flows from noncapital
financing activities:
Transfer from other funds- - - -
Transfer to other funds- - (2,000,000) (9,774)
Interfund loans(18,323) (50,304) 2,400,653 256,326
Net cash provided by (used for)
noncapital financing activities(18,323) (50,304) 400,653 246,552
Cash flows from capital and
related financing activities:
Acquisition of capital assets- - - (323,088)
Principal payments on long-term
debt- - - (612,353)
Interest paid on long-term debt- - - (18,773)
Net cash used for capital and
related financing activities- - - (954,214)
Cash flows from investing
activities:
Interest received- - 3,669 -
Net cash provided by
investing activities- - 3,669 -
Net increase (decrease) in
cash and investments- - (24,805) (15,064)
Cash and investments, beginning
of year- - 24,805 15,064
Cash and investments, end of year -$ -$ -$ -$
continued
-213-
TelephoneInformationCentral
SupportSystemsUtilityServices20122011
1,523,039$ 4,578,594$ 4,401,188$ 76,113$ 24,644,648$ 22,609,727$
(1,108,211) (3,493,340) (4,032,936) (111,491) (16,955,809) (16,282,268)
- - - - (5,958,796) (6,242,189)
9,443 2,718 - - 447,172 436,043
424,271 1,087,972 368,252 (35,378) 2,177,215 521,313
- - - - - 63,800
- - - - (2,009,774) (38,564)
(424,360) (190,696) (279,862) 35,378 1,728,812 1,567,122
(424,360) (190,696) (279,862) 35,378 (280,962) 1,592,358
- (182,724) - - (505,812) (1,514,228)
- (583,202) (61,847) - (1,257,402) (880,471)
- (131,460) (26,663) - (176,896) (66,009)
- (897,386) (88,510) - (1,940,110) (2,460,708)
89 110 120 - 3,988 4,187
89 110 120 - 3,988 4,187
- - - - (39,869) (342,850)
- - - - 39,869 382,719
-$ -$ -$ -$ -$ 39,869$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Cash Flows (continued)
Internal Service Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-214-
UnemploymentWorkers'Liability
InsuranceCompensationInsuranceMotorpool
Reconciliation of operating income
(loss) to net cash provided by
(used for) operating activities:
Operating income (loss)18,323$ (2,094,957)$ 1,031,860$(748,883)$
Adjustments to reconcile operating
income (loss) to net cash provided
by (used for) operating activities:
Amortization- - - -
Depreciation- - 116 841,351
Other nonoperating revenues- - - 435,011
(Increase) decrease in assets:
Other receivables- - - 266
Inventory- - - 115,157
Prepaids- - - -
Due from other governments- (52,488) - -
Increase (decrease) in liabilities:
Accounts payable- 636 (29,844) 57,843
Accrued liabilities- - - -
Claims and judgments- 2,191,273 (1,411,320) -
Compensated absences- 5,840 (19,939) (8,147)
Net cash provided by (used
for) operating activities18,323$ 50,304$ (429,127)$ 692,598$
Noncash, investing, capital and
financing activities:
Acquisition of capital assets
through capital lease-$ -$ -$ -$
continued
-215-
TelephoneInformationCentral
SupportSystemsUtilityServices20122011
235,372$ (289,850)$ (635,677)$ (42,566)$ (2,526,378)$ (8,434,056)$
- 594,633 - - 594,633 247,763
91,050 251,883 117,785 - 1,302,185 1,996,552
9,443 2,718 - - 447,172 436,043
63 - - - 329 927
- - - - 115,157 131,005
- - - - - 198,663
159,062 555,210 - 702 662,486 (710,564)
(80,680) (149,303) 882,642 3,273 684,567 264,904
- 69,662 - - 69,662 -
- - - - 779,953 6,479,888
9,961 53,019 3,502 3,213 47,449 (89,812)
424,271$ 1,087,972$ 368,252$ (35,378)$ 2,177,215$ 521,313$
-$ -$ -$ -$ -$ 840,470$
Totals
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CITY OF SAN BERNARDINO
Agency Funds
June 30, 2012
-217-
The Agency Funds are used to account for assets held by the City as an agent for individuals,
private organizations, other governments and/or other funds. The City maintains the following
Agency Funds for the purposes indicated:
Assessment District #961
For the collection of assessments from property owners and for the remittance of such
assessments to bondholders as required by the Improvement Bond Act of 1915 and related
California State statutes for this district.
Assessment District #977A
For the collection of assessments from property owners and for the remittance of such
assessments to bondholders as required by the Improvement Bond Act of 1915 and related
California State statutes for this district.
Assessment District #977B
For the collection of assessments from property owners and for the remittance of such
assessments to bondholders as required by the Improvement Bond Act of 1915 and related
California State statutes for this district.
Assessment District #1003
For the collection of assessments from property owners and for the remittance of such
assessments to bondholders as required by the Improvement Bond Act of 1915 and related
California State statutes for this district.
Special Deposits
For deposits made by developers, other government agencies or others for disposition under
the terms for which the deposits were made.
Cemetery Perpetual Care
For funds collected for the perpetual maintenance of the City owned and operated Cemetery.
San Bernardino Regional Water Resource Authority
For the collection and disposition of funds received for the San Bernardino Regional Water
Resource Authority.
Sturges Center for the Arts
For the collection and disposition of funds received for the Sturges Center for the Arts.
CITY OF SAN BERNARDINO
Combining Statement of Fiduciary Assets and Liabilities
Agency Funds
June 30, 2012 (with comparative totals as of June 30, 2011)
-218-
AssessmentAssessmentAssessmentAssessment
DistrictDistrictDistrictDistrict
#961#977A#977B#1003
ASSETS
Cash and investments368,257$ 61,914$ 26,629$ 58,192$
Accounts receivable, net- - - -
Interest receivable47 8 3 7
Due from other governments- - - -
Due from City of San Bernardino- - - -
Total assets368,304$ 61,922$ 26,632$ 58,199$
LIABILITIES
Accounts payable-$ -$ -$ -$
Deposits payable- - - -
Due to bond holders368,304 61,922 26,632 58,199
Total liabilities368,304$ 61,922$ 26,632$ 58,199$
continued
-219-
San Bernardino
CemeteryRegionalSturges
SpecialPerpetualWater ResourceCenter for
DepositsCareAuthoritythe Arts20122011
2,027,617$ -$ 74,584$ 12,743$ 2,629,936$ 4,058,896$
13,970 - - - 13,970 144,005
13 - - - 78 1,314
55,103 - - - 55,103 3,021
- 659,486 - - 659,486 -
2,096,703$ 659,486$ 74,584$ 12,743$ 3,358,573$ 4,207,236$
-$ -$ -$ -$ -$ 101,151$
2,096,703 659,486 74,584 12,743 2,843,516 3,590,678
- - - - 515,057 515,407
2,096,703$ 659,486$ 74,584$ 12,743$ 3,358,573$ 4,207,236$
Totals
CITY OF SAN BERNARDINO
Combining Statement of Changes in Fiduciary Assets and Liabilities
Agency Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-220-
Balance atBalance at
July 1, 2011AdditionsDeletionsJune 30, 2012
Assessment District #961
Assets
Cash and investments367,801$ 456$ -$ 368,257$
Interest receivable757 47 757 47
Total assets368,558$ 503$ 757$ 368,304$
Liabilities
Due to bondholders368,558$ 503$ 757$ 368,304$
Total liabilities368,558$ 503$ 757$ 368,304$
Assessment District #977A
Assets
Cash and investments61,522$ 392$ -$ 61,914$
Interest receivable127 8 127 8
Due from other governments315 - 315 -
Total assets61,964$ 400$ 442$ 61,922$
Liabilities
Due to bond holders61,964$ 400$ 442$ 61,922$
Total liabilities61,964$ 400$ 442$ 61,922$
Assessment District #977B
Assets
Cash and investments23,891$ 2,738$ -$ 26,629$
Interest receivable49 3 49 3
Due from other governments2,706 - 2,706 -
Total assets26,646$ 2,741$ 2,755$ 26,632$
Liabilities
Due to bond holders26,646$ 2,741$ 2,755$ 26,632$
Total liabilities26,646$ 2,741$ 2,755$ 26,632$
CITY OF SAN BERNARDINO
Combining Statement of Changes in Fiduciary Assets and Liabilities (continued)
Agency Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-221-
Balance atBalance at
July 1, 2011AdditionsDeletionsJune 30, 2012
Assessment District #1003
Assets
Cash and investments58,121$ 71$ -$ 58,192$
Interest receivable118 7 118 7
Total assets58,239$ 78$ 118$ 58,199$
Liabilities
Due to bondholders58,239$ 78$ 118$ 58,199$
Total liabilities58,239$ 78$ 118$ 58,199$
Special Deposits
Assets
Cash and investments2,936,218$ 3,309,287$ 4,217,888$ 2,027,617$
Accounts receivable, net144,005 260,753 390,788 13,970
Interest receivable263 13 263 13
Due from other governments- 55,103 - 55,103
Total assets3,080,486$ 3,625,156$ 4,608,939$ 2,096,703$
Liabilities
Deposits payable3,080,486$ 3,625,156$ 4,608,939$ 2,096,703$
Total liabilities3,080,486$ 3,625,156$ 4,608,939$ 2,096,703$
Cemetery Perpetual Care
Assets
Cash and investments659,341$ 134,545$ 793,886$ -$
Due from City of San
Bernardino- 659,486 - 659,486
Total assets659,341$ 794,031$ 793,886$ 659,486$
Liabilities
Deposits payable659,341$ 794,031$ 793,886$ 659,486$
Total liabilities659,341$ 794,031$ 793,886$ 659,486$
CITY OF SAN BERNARDINO
Combining Statement of Changes in Fiduciary Assets and Liabilities (continued)
Agency Funds
Year Ended June 30, 2012 (with comparative totals for the year ended June 30, 2011)
-222-
Balance atBalance at
July 1, 2011AdditionsDeletionsJune 30, 2012
San Bernardino Regional
Water Resource Authority
Assets
Cash and investments74,584$ -$ -$ 74,584$
Total assets74,584$ -$ -$ 74,584$
Liabilities
Deposits payable74,584$ -$ -$ 74,584$
Total liabilities74,584$ -$ -$ 74,584$
Sturges Center for the Arts
Assets
Cash and investments12,743$ -$ -$ 12,743$
Total assets12,743$ -$ -$ 12,743$
Liabilities
Deposits payable12,743$ -$ -$ 12,743$
Total liabilities12,743$ -$ -$ 12,743$
Totals - All Agency Funds
Assets
Cash and investments4,194,221$ 3,447,489$ 5,011,774$ 2,629,936$
Accounts receivable, net144,005 260,753 390,788 13,970
Interest receivable1,314 78 1,314 78
Due from other governments3,021 55,103 3,021 55,103
Due from City of San
Bernardino- 659,486 - 659,486
Total assets4,342,561$ 4,422,909$ 5,406,897$ 3,358,573$
Liabilities
Deposits payable3,827,154$ 4,419,187$ 5,402,825$ 2,843,516$
Due to bondholders515,407 3,722 4,072 515,057
Total liabilities4,342,561$ 4,422,909$ 5,406,897$ 3,358,573$
CITY OF SAN BERNARDINO
Statistical Section
June 30, 2012
-223-
This part of the City of San Bernardino Comprehensive Annual Financial Report presents detailed
information as a context for understanding what the information in the financial statements, note
disclosures, and required supplementary information says about the government’s overall financial
health.
Contents: Page
Financial Trends
These schedules contain trend information to help the reader understand
how the City’s financial performance and well-being have changed over
time.
224
Revenue Capacity
These schedules contain information to help the reader assess the City’s
most significant local revenue source, the property tax.
234
Debt Capacity
These schedules present information to help the reader assess the
affordability of the City’s current levels of outstanding debt and its ability to
issue additional debt in the future.
238
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the
reader understand the environment within which the City’s financial activities
take place.
245
Operating Information
These schedules contain service and infrastructure data to help the reader
understand how the information in the City’s financial report is related to the
services it provides and the activities it performs.
247
CITY OF SAN BERNARDINO
Statistical Section
Net Assets by Component
Last Ten Fiscal Years
(accrual basis of accounting)
-224-
Fiscal Year
2003200420052006*
Governmental activities:
Invested in capital assets,
net of related debt159,997,876$ 161,342,293$ 165,342,311$ 446,214,267$
Restricted44,041,49296,428,026113,377,790135,155,865
Unrestricted(83,153,847)(134,736,718)(139,222,042)(190,675,069)
Total governmental activities
net assets120,885,521$ 123,033,601$ 139,498,059$ 390,695,063$
Business-type activities:
Invested in capital assets,
net of related debt132,932,983$ 142,833,962$ 153,245,960$ 176,245,295$
Restricted8,719,48912,532,37920,007,02624,859,169
Unrestricted36,022,81533,748,85537,167,93425,605,996
Total business-type activities
net assets177,675,287$ 189,115,196$ 210,420,920$ 226,710,460$
Primary government:
Invested in capital assets,
net of related debt292,930,859$ 304,176,255$ 318,588,271$ 622,459,562$
Restricted52,760,981108,960,405133,384,816160,015,034
Unrestricted(47,131,032)(100,987,863)(102,054,108)(165,069,073)
Total primary government
net assets298,560,808$ 312,148,797$ 349,918,979$ 617,405,523$
* Net infrastructure increase of $294.2 million recorded in the 2006 fiscal year.
Source: Statement of Net Assets
continued
-225-
Fiscal Year
200720082009201020112012
439,241,654$ 457,017,602$ 456,769,519$ 417,644,510$ 425,705,511$ 394,655,658$
172,975,182189,545,448206,065,382188,976,306197,685,282112,634,171
(206,382,426)(234,036,937)(252,777,547)(220,895,189)(260,861,339)(126,831,648)
405,834,410$ 412,526,113$ 410,057,354$ 385,725,627$ 362,529,454$ 380,458,181$
188,668,410$ 196,936,845$ 197,034,723$ 200,989,638$ 204,367,733$ 212,255,999$
27,280,33324,205,03319,831,72611,992,0598,276,4627,389,246
27,222,67629,950,67434,586,99739,723,81641,372,19840,727,533
243,171,419$ 251,092,552$ 251,453,446$ 252,705,513$ 254,016,393$ 260,372,778$
627,910,064$ 653,954,447$ 653,804,242$ 618,634,148$ 630,073,244$ 606,911,657$
200,255,515213,750,481225,897,108200,968,365205,961,744120,023,417
(179,159,750)(204,086,263)(218,190,550)(181,171,373)(219,489,141)(86,104,115)
649,005,829$ 663,618,665$ 661,510,800$ 638,431,140$ 616,545,847$ 640,830,959$
CITY OF SAN BERNARDINO
Statistical Section
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting)
-226-
Fiscal Year
2003200420052006
Expenses:
Governmental activities:
General Government10,110,920$ 21,656,283$ 24,808,713$ 23,892,333$
Public Safety71,475,265 74,407,316 80,039,649 136,667,148
Streets12,349,490 14,669,079 13,891,216 27,057,006
Culture and Recreation6,691,192 7,169,744 7,161,720 6,982,538
Community Development6,065,117 8,884,530 12,687,620 8,346,669
Economic Development20,259,952 24,495,651 18,044,434 13,049,495
Community Service11,133,083 11,482,351 2,137,139 8,721,633
Interest on long-term debt13,031,339 14,163,424 9,139,110 13,196,169
Total governmental activities
expenses151,116,358 176,928,378 167,909,601 237,912,991
Business-type activities:
Integrated Waste15,040,394 16,594,002 18,558,293 21,008,588
Water18,825,102 21,317,663 22,734,007 25,236,041
Sewer19,413,795 18,976,067 21,541,197 22,728,156
Total business-type activities
expenses53,279,291 56,887,732 62,833,497 68,972,785
Total primary government
expenses204,395,649 233,816,110 230,743,098 306,885,776
Program revenues:
Governmental activities:
Charges for services:
General Government2,747,466 2,738,254 3,398,519 3,035,106
Public Safety4,685,593 4,311,566 4,206,552 5,584,791
Streets4,650,313 5,692,784 7,825,117 10,375,349
Culture and Recreation1,351,930 1,299,275 1,886,925 2,148,929
Community Development3,055,541 3,384,534 4,496,494 5,455,580
Economic Development
Community Service1,438,110 1,468,455 1,588,046 1,575,304
Operating grants and contributions17,360,240 19,109,855 15,612,353 16,749,511
Capital grants and contributions13,953,933 16,081,187 18,350,510 8,560,691
Total governmental activities
program revenues49,243,126 54,085,910 57,364,516 53,485,261
Business-type activities:
Charges for services:
Integrated Waste18,412,352 19,149,079 21,585,381 22,751,076
Water20,306,056 24,159,556 18,605,346 19,702,252
Sewer17,009,204 17,339,174 19,551,823 19,492,372
Operating grants and contributions794,044 1,214,167 1,001,047 1,983,509
Capital grants and contributions6,520,569 7,942,497 18,906,564 18,430,146
Total business-type activities
program revenues63,042,225 69,804,473 79,650,161 82,359,355
Total primary government
program revenues112,285,351 123,890,383 137,014,677 135,844,616
continued
-227-
Fiscal Year
200720082009201020112012
27,262,344$ 28,690,682$ 31,889,888$ 30,091,111$ 22,992,136$ 22,915,176$
93,515,654 101,494,843 100,515,707 96,151,341 106,367,139 108,865,770
27,069,798 29,851,158 28,471,766 26,308,728 31,801,002 30,143,061
7,641,107 9,008,014 7,119,434 5,682,806 7,112,156 7,649,897
9,035,671 7,280,167 12,214,813 29,981,845 16,303,880 9,605,305
10,484,282 18,262,699 22,276,482 18,333,565 31,253,168 24,074,629
7,859,979 7,900,685 4,224,880 9,092,811 11,223,506 7,823,261
14,091,476 13,486,264 14,035,536 13,852,035 13,299,213 7,234,246
196,960,311 215,974,512 220,748,506 229,494,242 240,352,200 218,311,345
21,484,555 24,356,571 23,703,876 23,871,383 24,172,161 26,931,095
28,410,534 33,045,283 33,227,061 32,608,484 36,343,754 39,951,698
25,357,620 25,053,649 24,145,799 26,037,956 24,072,074 23,232,878
75,252,709 82,455,503 81,076,736 82,517,823 84,587,989 90,115,671
272,213,020 298,430,015 301,825,242 312,012,065 324,940,189 308,427,016
3,049,407 2,634,674 3,520,136 4,035,539 509,158 3,466,570
6,830,785 7,847,150 8,132,156 8,397,172 7,696,287 8,399,399
13,220,302 15,292,390 10,402,510 7,611,158 6,357,593 6,476,362
2,264,397 2,141,227 1,045,559 1,897,352 1,009,023 965,629
5,035,631 3,829,972 2,986,531 3,681,075 4,413,761 4,981,622
1,665,858 1,740,995 1,564,959 1,539,532 1,869,805 322,873
15,674,299 16,270,234 20,318,765 29,834,546 33,138,747 26,312,461
10,742,679 11,883,134 10,006,137 8,127,158 15,689,230 11,305,306
58,483,358 61,639,776 57,976,753 65,123,532 70,683,604 62,230,222
24,035,457 24,410,492 25,095,208 26,074,292 24,529,480 24,371,665
26,281,951 27,337,093 27,258,954 27,688,694 33,027,707 37,106,217
21,002,484 20,847,984 21,208,021 22,424,943 23,433,833 25,888,729
4,287,943 2,715,957 2,043,889 1,894,624 1,928,999 1,838,223
14,904,830 13,263,336 5,197,854 6,325,571 4,390,162 3,055,921
90,512,665 88,574,862 80,803,926 84,408,124 87,310,181 92,260,755
148,996,023 150,214,638 138,780,679 149,531,656 157,993,785 154,490,977
CITY OF SAN BERNARDINO
Statistical Section
Changes in Net Assets (continued)
Last Ten Fiscal Years
(accrual basis of accounting)
-228-
Fiscal Year
(continued)2003200420052006
Net revenues (expenses):
Governmental activities(101,873,232) (122,842,468) (110,545,085) (184,427,730)
Business-type activities9,762,934 12,916,741 16,816,664 13,386,570
Total net revenues (expenses)(92,110,298) (109,925,727) (93,728,421) (171,041,160)
General revenues and other changes
in net assets:
Governmental activities:
Taxes:
Sales tax29,894,441 32,277,342 34,768,847 36,753,095
Property tax26,327,504 28,965,153 32,611,618 49,242,321
Other taxes27,919,423 30,203,483 31,468,545 34,033,797
Franchise tax2,878,719 3,084,720 3,137,384 3,343,990
Investment income (unrestricted)8,850,414 8,535,567 8,670,285 8,867,706
Other general revenues8,140,146 9,282,701 3,322,507 4,805,836
Intergovernmental (unrestricted)11,142,549 11,200,846 7,260,757 1,541,439
Gain on sale of capital assets- - - -
Extraordinary item:
Gain on dissolution of economic
development agency- - - -
Transfers1,598,246 2,316,200 2,316,200 2,810,900
Total governmental activities116,751,442 125,866,012 123,556,143 141,399,084
Business-type activities
Investment income (unrestricted)2,382,963 839,368 4,783,660 4,024,042
Other revenues- - 2,021,600 1,689,828
Loss on disposal of capital assets- - - -
Transfers(1,598,246) (2,316,200) (2,316,200) (2,810,900)
Total business-type activities784,717 (1,476,832) 4,489,060 2,902,970
Total primary government117,536,159 124,389,180 128,045,203 144,302,054
Changes in net assets:
Governmental activities14,878,210 3,023,544 13,011,058 (43,028,646)
Business-type activities10,547,651 11,439,909 21,305,724 16,289,540
Total primary government25,425,861$ 14,463,453$ 34,316,782$ (26,739,106)$
Source: Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances
continued
-229-
Fiscal Year
200720082009201020112012
(138,476,953) (154,334,736) (162,771,753) (164,370,710) (169,668,596) (156,081,123)
15,259,956 6,119,359 (272,810) 1,890,301 2,722,192 2,145,084
(123,216,997) (148,215,377) (163,044,563) (162,480,409) (166,946,404) (153,936,039)
36,011,631 36,101,446 29,601,414 25,569,302 29,378,969 32,347,377
58,061,978 65,324,686 74,661,731 63,565,610 63,442,311 46,708,872
34,952,626 34,423,896 33,460,958 31,087,543 31,124,606 30,911,640
3,348,564 3,611,073 3,513,508 3,125,973 3,164,830 3,268,800
7,723,375 5,649,984 3,921,832 1,112,028 2,262,551 -
9,455,462 12,104,881 11,409,423 11,213,503 10,036,775 4,824,838
1,529,664 1,193,173 951,828 853,324 1,068,331 -
- - - - 2,546,550 -
- - - - - 49,844,437
2,533,000 2,617,300 2,782,300 3,511,700 3,447,500 (65,000)
153,616,300 161,026,439 160,302,994 140,038,983 146,472,423 167,840,964
3,270,023 4,116,288 2,808,251 2,333,045 1,410,638 1,031,912
463,980 835,984 607,753 540,421 625,550 1,444,963
- (533,198) - - - -
(2,533,000) (2,617,300) (2,782,300) (3,511,700) (3,447,500) 65,000
1,201,003 1,801,774 633,704 (638,234) (1,411,312) 2,541,875
154,817,303 162,828,213 160,936,698 139,400,749 145,061,111 170,382,839
15,139,347 6,691,703 (2,468,759) (24,331,727) (23,196,173) 11,759,841
16,460,959 7,921,133 360,894 1,252,067 1,310,880 4,686,959
31,600,306$ 14,612,836$ (2,107,865)$ (23,079,660)$ (21,885,293)$ 16,446,800$
CITY OF SAN BERNARDINO
Statistical Section
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-230-
Fiscal Year
2003200420052006
General fund:
Reserved1,149,167$ 1,667,321$ 565,637$ 372,840$
Unreserved11,740,916 10,811,053 17,674,733 16,891,900
Nonspendable- - - -
Unassigned- - - -
Total general fund12,890,083 12,478,374 18,240,370 17,264,740
All other governmental funds:
Reserved100,773,650 92,518,419 86,310,076 106,294,213
Unreserved, reported in:
Special revenue funds6,399,819 6,948,361 10,402,126 15,924,138
Debt service funds(2,226,126) (2,266,242) (2,075,698) (2,806,294)
Capital project funds11,876,357 17,133,417 33,126,970 39,757,743
Nonspendable- - - -
Restricted- - - -
Committed- - - -
Assigned- - - -
Unassigned- - - -
Total all other governmental funds116,823,700$ 114,333,955$ 127,763,474$ 159,169,800$
Source: Governmental Funds Balance Sheet
continued
-231-
Fiscal Year
200720082009201020112012
916,003$ 600,241$ 222,157$ 1,107,232$ -$ -$
17,680,645 15,552,803 2,486,162 (696,939) - -
- - - - 101,054 95,306
- - - - (1,282,658) (12,304,390)
18,596,648 16,153,044 2,708,319 410,293 (1,181,604) (12,209,084)
113,001,861 115,642,734 126,666,344 189,764,830 - -
22,423,967 15,519,741 21,082,573 (14,349,535) - -
(782,226) 1,623,105 (406,895) (581,544) - -
55,231,122 67,966,965 62,722,731 23,607,604 - -
- - - - 2,962,070 -
- - - - 242,457,518 104,770,342
- - - - 356,373 589,180
- - - - 118,462 79,971
- - - - (40,459,403) (3,240,711)
189,874,724$ 200,752,545$ 210,064,753$ 198,441,355$ 205,435,020$ 102,198,782$
CITY OF SAN BERNARDINO
Statistical Section
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
-232-
Fiscal Year
2003200420052006
Revenues:
Taxes84,123,265$ 91,755,978$ 107,732,349$ 120,977,254$
Licenses and permits7,262,108 7,876,768 9,585,532 10,277,240
Impact fees- - - 843,458
Fines and forfeitures1,559,840 1,758,510 1,974,534 2,554,720
Investment Income6,053,106 5,206,478 4,414,204 5,312,423
Lease- - - -
Intergovernmental39,313,349 46,348,639 35,933,532 29,179,616
Charges for services9,512,656 10,066,984 13,447,328 16,296,784
Other11,583,609 10,855,822 14,914,028 6,926,240
Total revenues159,407,933 173,869,179 188,001,507 192,367,735
Expenditures:
Current:
General Government15,317,801 18,560,589 21,725,050 23,405,697
Public Safety69,742,970 73,516,373 79,860,210 134,891,847
Streets17,173,949 17,101,303 19,596,406 24,060,239
Culture and Recreation6,901,194 7,450,410 6,987,251 6,898,492
Community Development12,763,319 20,291,613 13,527,724 10,695,256
Community Service10,827,093 6,977,775 4,299,772 8,485,029
Economic Development15,038,436 17,593,938 11,222,530 12,469,103
Debt service:
Principal retirement9,584,617 8,939,434 7,831,737 12,546,394
Interest and fiscal charges11,529,630 11,282,798 11,984,266 12,067,597
Bond issuance costs- - - 1,267,051
Payment to refunded escrow- - - 5,497,751
Total expenditures168,879,009 181,714,233 177,034,946 252,284,456
Excess (deficiency) of
revenues over (under)
expenditures(9,471,076) (7,845,054) 10,966,561 (59,916,721)
Other financing sources (uses):
Transfers in31,143,372 36,782,713 30,033,293 34,251,343
Transfers out(28,503,926) (34,066,513) (27,454,893) (31,773,743)
Issuance of long-term debt3,500,000 2,401,954 2,193,154 107,337,383
Pension bonds issued- - - 62,095,000
Discounts on pension bonds issued- - - (10,155,317)
Payment to refunded escrow agent- - - (71,407,249)
Forgiveness of debt- - - -
Sale of capital assets- - - -
Total other financing
sources (uses)6,139,446 5,118,154 4,771,554 90,347,417
Extraordinary item:
Gain (loss) on dissolution of
economic development agency- - - -
Net change in fund balances(3,331,630)$ (2,726,900)$ 15,738,115$ 30,430,696$
Debt service as a percentage of
noncapital expenditures13.7%12.3%12.0%13.1%
Source: Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances
continued
-233-
Fiscal Year
200720082009201020112012
129,060,182$ 135,605,049$ 138,027,508$ 120,443,480$ 123,896,615$ 109,518,983$
12,499,578 11,116,513 10,048,833 8,796,052 8,516,516 10,243,232
3,450,896 5,268,475 1,065,305 2,036,352 618,030 239,553
3,183,008 3,880,674 4,721,725 5,850,072 2,338,684 1,973,047
9,974,811 8,413,713 5,708,816 4,191,386 2,485,053 1,148,831
- - - - - 2,049,151
34,294,304 36,683,544 37,970,647 42,318,633 48,775,893 34,030,047
14,268,495 13,465,003 11,020,644 10,932,430 12,886,715 12,325,700
8,940,357 6,803,988 6,213,253 8,603,639 8,925,459 8,036,027
215,671,631 221,236,959 214,776,731 203,172,044 208,442,965 179,564,571
24,355,666 24,983,025 23,468,564 23,815,033 17,234,673 21,691,566
91,978,732 100,534,357 105,613,213 96,130,768 101,657,184 102,876,767
26,555,429 27,129,532 25,150,386 20,267,012 24,433,688 16,780,012
8,261,185 9,480,585 6,842,658 5,228,540 6,579,287 7,522,783
8,563,125 9,363,769 11,777,679 12,817,428 15,901,097 9,852,580
6,547,021 6,914,615 4,329,133 9,150,336 10,266,256 7,967,618
10,178,004 18,165,689 22,276,482 34,168,768 29,735,854 18,074,203
8,949,418 10,759,184 11,223,004 12,285,742 12,627,234 9,872,237
14,676,189 13,146,478 14,101,348 13,420,944 13,745,859 9,716,214
- - - - - -
- - - - - -
200,064,769 220,477,234 224,782,467 227,284,571 232,181,132 204,353,980
15,606,862 759,725 (10,005,736) (24,112,527) (23,738,167) (24,789,409)
53,516,613 47,095,652 48,744,845 38,698,615 33,952,713 38,439,148
(50,711,595) (44,964,252) (47,090,561) (34,665,002) (30,530,449) (36,494,374)
13,624,952 3,638,489 4,218,935 4,227,490 23,171,122 18,000,000
- - - - - -
- - - - - -
- - - - - -
- 1,556,000 - - - -
- - - 1,930,000 2,546,549 (5,248,157)
16,429,970 7,325,889 5,873,219 10,191,103 29,139,935 14,696,617
- - - - - (110,339,812)
32,036,832$ 8,085,614$ (4,132,517)$ (13,921,424)$ 5,401,768$ (120,432,604)$
12.6%11.5%12.3%11.8%11.9%9.8%
CITY OF SAN BERNARDINO
Statistical Section
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
-234-
Fiscal YearTaxable
EndedLessAssessed
June 30SecuredUnsecuredExemptionsValue
20033,890,771,009240,855,914(142,450,899)3,989,176,024
20044,131,145,783243,179,161(146,771,273)4,227,553,671
20054,356,175,834246,018,029(146,527,117)4,455,666,746
20064,775,068,600251,599,885(144,877,914)4,881,790,571
20075,423,944,631252,834,944(144,547,076)5,532,232,499
20086,132,855,990257,839,081(144,303,550)6,246,391,521
20096,233,169,050261,272,249(145,708,938)6,348,732,361
20105,185,425,176260,923,761(143,959,857)5,302,389,080
20114,956,261,271252,261,265(143,550,006)5,064,972,530
20124,959,942,790252,999,295(141,201,758)5,071,740,327
City
Note:
In1978thevotersoftheStateofCaliforniapassesProposition13whichlimitedpropertytaxes
toatotalminimumrateof1%basedupontheassessedvalueofthepropertybeingtaxed.
Eachyear,theassessedvalueofpropertymaybeincreasedbyan"inflationfactor"(limitedtoa
maximumincreaseof2%).Withfewexceptions,propertyisonlyre-assessedatthetimethatit
issoldtoanewowner.Atthatpoint,thenewassessedvalueisreassessedatthepurchase
priceofthepropertysold.Theassessedvaluationdatashownaboverepresentstheonlydata
currentlyavailablewithrespecttotheactualmarketvalueoftaxablepropertyandissubjectto
thelimitationsdescribedabove.
Source:CountyofSanBernardino,Auditor/Controller-Recorder-CountyClerk
continued
-235-
TaxableTotal
LessAssessedDirect Tax
SecuredUnsecuredExemptionsValueRate
1,762,347,247269,287,123- 2,031,634,3700.44%
1,974,759,124310,354,838- 2,285,113,9620.44%
2,388,824,098292,415,626- 2,681,239,7240.46%
2,844,012,789335,148,475- 3,179,161,2640.61%
3,663,290,709374,962,702- 4,038,253,4110.61%
4,514,199,489391,939,126- 4,906,138,6150.59%
5,178,960,928500,192,233- 5,679,153,1610.62%
5,120,754,081577,948,187- 5,698,702,2680.58%
4,678,734,272602,483,225- 5,281,217,4970.61%
4,486,175,902607,066,114- 5,093,242,0160.46%
Redevelopment Agency
CITY OF SAN BERNARDINO
Statistical Section
Principal Property Tax Payers
Current Year and Ten Years Ago
-236-
Percent ofPercent of
Total CityTotal City
TaxableTaxableTaxableTaxable
AssessedAssessedAssessedAssessed
Taxpayer:ValueValueValueValue
Stater Bros Markets361,321,350$ 3.51%15,846,217$ 0.27%
Rancon Realty Fund154,593,9021.50%- 0.00%
LIT Industrial LTD Partnership116,262,7831.13%- 0.00%
Opus R/E CA VII Northpointe77,918,6200.76%- 0.00%
Kohl's Department Stores Inc65,067,2470.63%21,907,6000.38%
WP CT Cajon LLC63,140,5000.61%- 0.00%
WM Inland Investors LLC IV58,576,1040.57%- 0.00%
786 Central LLC52,500,0000.51%- 0.00%
Westgate No 1 LP51,300,0000.50%- 0.00%
Tec Park Land LP49,667,1180.48%- 0.00%
Catholic Healthcare West101,698,2191.75%
Rancon Realty Fund V34,823,519 0.60%
St Bernardine Medical Center47,973,4620.83%
Pera Castlepark Inc39,366,0000.68%
CNP & Media News Group27,031,2230.47%
Rancon Realty Fund IV22,626,2720.39%
Capital Foresight San Bernardino21,600,0000.37%
Universe at Acacia LLC19,400,0000.33%
6155 Palm Avenue Apartments LLC18,054,0000.31%
Costco Wholesale Corp10,716,2790.18%
Community Hospital of San Bernardino13,914,8970.24%
Yellow Freight System Inc13,190,3990.23%
Delta Investors II LLC12,970,0840.22%
California Newspaper Partnership11,259,4160.19%
SB Tri-City Associates10,469,2420.18%
Cinemastar Luxury Theaters Inc10,404,0000.18%
Roman Catholic Bishop of San Bernardino9,127,9900.16%
Central City Company LLC8,736,7000.15%
1,050,347,624$10.20%471,115,519$ 8.13%
The amounts shown above include assessed value data for both the City and the Redevelopment Agency.
Sources: HdL Coren & Cone for 2012, City of San Bernardino Real Property Section for 2002
20122002
CITY OF SAN BERNARDINO
Statistical Section
Property Tax Levies and Collections
Last Ten Fiscal Years
-237-
FiscalTaxes LeviedCollections in
Year Endedfor thePercentSubsequentPercent
June 30Fiscal YearAmountof LevyYearsAmountof Levy
20037,357,853$ 7,209,686$ 97.99%398,976$ 7,608,662$ 103.41%
20047,957,7507,959,153100.02%388,9588,348,111104.91%
20058,506,4538,571,117100.76%414,8978,986,014105.64%
20069,525,9789,474,66199.46%389,3949,864,055103.55%
200711,085,242 10,461,907 94.38%395,00110,856,90897.94%
200812,856,402 11,666,517 90.74%542,35812,208,87594.96%
200913,190,847 12,391,917 93.94%904,95613,296,873100.80%
201011,173,659 10,507,597 94.04%943,32411,450,921102.48%
201110,567,101 10,184,419 96.38%430,36510,614,784100.45%
201210,547,495 9,552,101 90.56%291,2779,843,37893.32%
Note:
The amounts presented include City property taxes only.
In 2011 penalties started to be excluded from amounts collected.
Source: County of San Bernardino, Auditor/Controller - Recorder - County Clerk
Fiscal Year of Levy
Collected within the
Total Collections to Date
CITY OF SAN BERNARDINO
Statistical Section
Ratios of Outstanding Debt by Type
Last Seven Fiscal Years
-238-
2006200720082009
Governmental Activities:
Lease revenue bonds17,360,000$ 15,855,000$ 14,765,000$ 13,615,000$
Tax allocation bonds155,217,904 149,821,430 144,119,956 138,113,483
Certificates of participation13,275,000 12,850,000 12,405,000 11,935,000
Pension obligation bonds50,401,583 50,401,583 49,564,907 48,599,907
Other15,236,681 27,149,462 28,360,145 31,207,863
Total governmental activities251,491,168 256,077,475 249,215,008 243,471,253
Business-type Activities:
Capital leases914,381 6,176,079 10,004,851 12,029,423
Notes payable28,021,736 25,728,019 33,352,913 30,895,419
Certificates of participation27,732,673 25,846,450 23,859,730 21,757,488
Water bonds75,000 65,000 55,000 45,000
Total business-type activities56,743,790 57,815,548 67,272,494 64,727,330
Total Primary Government308,234,958$ 313,893,023$ 316,487,502$ 308,198,583$
Percentage of Personal Income*6.25%6.37%5.79%5.37%
Debt per Capita*1,570$ 1,599$ 1,571$ 1,506$
*=Basedonmostcurrentdataavailable
Notes:
Informationpriortofiscalyear2006isnotavailable,asitwasnotdevelopedintheformatrequiredprior
tothisdate.
CertaindebtsoftheCityweretransferredtotheSuccessorAgencytotheCity'sredevelopmentagency
upondissolutionoftheagencyonFebruary1,2012.
continued
-239-
201020112012
12,410,000$ 11,145,000$ -$
131,777,008 134,670,538 -
11,450,000 10,940,000 4,520,000
47,902,051 47,075,251 46,140,860
31,850,996 46,518,126 16,338,553
235,390,055 250,348,915 66,999,413
13,598,053 13,149,895 10,280,057
27,912,613 24,439,995 31,547,225
19,539,695 17,196,320 14,707,332
35,000 25,000 15,000
61,085,361 54,811,210 56,549,614
296,475,416$ 305,160,125$ 123,549,027$
4.71%4.95%1.98%
1,443$ 1,465$ 589$
CITY OF SAN BERNARDINO
Statistical Section
Ratio of General Bonded Debt Outstanding
Last Seven Fiscal Years
-240-
(amounts in thousands, except per capita)
FiscalTaxPensionLeasePercent of
Year EndedAllocationObligationRevenueAssessedPer
June 30BondsBondsBondsTotalValueCapita
2006155,218$ 50,402$ 17,360$ 222,980$ 2.77%1,136$
2007149,821 50,402 15,865 216,088 2.26%1,101
2008144,120 49,565 14,765 208,450 1.87%1,035
2009138,113 48,600 13,615 200,328 1.67%979
2010131,777 47,902 12,410 192,089 1.75%935
2011134,671 47,075 11,145 192,891 1.86%926
2012- 46,141 - 46,141 0.45%220
Outstanding General Bonded Debt
Notes:
Informationpriortofiscalyear2006isnotavailable,asitwasnotdevelopedintheformatrequired
priortothisdate.
Certain debts of the City were transferred to the Successor Agency to the City's redevelopment agency
upondissolution of the agency on February 1, 2012.
CITY OF SAN BERNARDINO
Statistical Section
Direct and Overlapping Bonded Debt
-241-
2011-12 Assessed Valuation10,306,184,101$
Redevelopment Incremental Valuation:(5,093,242,016)
Adjusted Assessed Valuation:5,212,942,085
Total DebtPercentCity's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT 6/30/12Applicable (1)Debt 6/30/12
San Bernardino Community College District427,595,651$ 14.128%60,410,714$
Colton Joint Unified School District188,244,4222.9825,613,449
Redlands Unified School District105,269,7840.847891,635
Rialto Unified School District76,992,22510.7608,284,363
San Bernardino City Unified School District165,304,79970.849117,116,797
Colton Joint Unified School District CFD No. 24,245,00042.7201,813,464
Total Overlapping Tax and Assessment Debt194,130,422$
Ratios to 2011-12 Assessed Valuation
Total Overlapping Tax and Assessment Debt1.88%
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Bernardino County General Fund Obligations613,235,000$ 4.580%28,086,163$
San Bernardino County Pension Obligations547,885,5914.58025,093,160
San Bernardino County Flood Control District General
Fund Obligations108,210,0004.5804,956,018
Colton Joint Unified School District Certificates of
Participation4,871,7572.982145,276
Redlands Unified School District Certificates of
Participation5,000,0000.84742,350
Rialto Unified School District Certificates of
Participation6,840,00010.760735,984
San Bernardino City Unified School District Certificates
of Participation53,080,00070.84937,606,649
City of San Bernardino General Fund Obligations20,210,000100.00020,210,000
City of San Bernardino Pension Obligations46,140,860100.00046,140,860
Total Direct and Overlapping General Fund Debt163,016,460$
Total Direct Debt 66,350,860$
Total Overlapping Debt 290,796,022
Combined Total Debt (2)357,146,882$
(1) Percentage of overlapping agency's assessed valuation located within boundaries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation
bonds and non-bonded capital lease obligations. Qualified Zone Academy Bonds are included based
on principal due at maturity.
Ratios to Adjusted Assessed Valuation:
Total Direct Debt ($66,350,860)1.27%
Combined Total Debt6.85%
State School Building Aid Repayable as of 6/30/12:-$
AB: ($450)
Note: The most recent information available was as of June 30, 2011.
CITY OF SAN BERNARDINO
Statistical Section
Legal Debt Margin Information
Last Ten Fiscal Years
-242-
(amounts in thousands)
Fiscal Year
2003200420052006
Assessed valuation4,131,627$ 4,374,325$ 4,602,194$ 5,026,668$
Conversion percentage25%25%25%25%
Adjusted assessed value1,032,907 1,093,581 1,150,548 1,256,667
Debt limit percentage15%15%15%15%
Debt limit 154,936 164,037 172,582 188,500
Total net debt applicable to limit:
General obligation bonds27,76528,09024,74581,037
Legal debt margin127,171$ 135,947$ 147,837$ 107,463$
Total debt applicable to the limit
as a percentage of debt limit17.9%17.1%14.3%43.0%
Note:
ThegovernmentcodeoftheStateofCaliforniaprovidesforalegaldebtlimitof15%ofgrossassessed
valuation.However,thisprovisionwasenactedwhenassessedvaluationwasbasedupon25%ofmarket
value.Effectivewiththe1981-82fiscalyear,eachparcelinnowassessedat100%ofmarketvalue(asof
themostrecentchangeinownershipforthatparcel).Thecomputationsshownabovereflecta
conversionofassessedvaluationdataforeachfiscalyearfromthecurrentfullvaluationperspectiveto
the25%levelthatwasineffectatthetimethatthelegaldebtmarginwasenactedbytheStateof
Californiaforlocalgovernmentslocatedwithinthestate.
continued
-243-
Fiscal Year
200720082009201020112012
5,676,780$ 6,390,695$ 6,494,441$ 5,446,349$ 5,208,523$ 5,212,942$
25%25%25%25%25%25%
1,419,195 1,597,674 1,623,610 1,361,587 1,302,131 1,303,236
15%15%15%15%15%15%
212,879 239,651 243,542 204,238 195,320 195,485
79,10776,73574,15071,76269,16066,436
133,773$ 162,916$ 169,392$ 132,476$ 126,159$ 129,049$
37.2%32.0%30.4%35.1%35.4%34.0%
CITY OF SAN BERNARDINO
Statistical Section
Pledged-Revenue Coverage
Last Seven Fiscal Years
-244-
(amounts in thousands)
Water Utility
FiscalLessNet
Year EndedWaterOperatingAvailable
June 30RevenueExpensesRevenuePrincipalInterestCoverage
200627,15320,9856,1674573177.97
200735,28423,69111,59347260210.80
200838,68727,39711,29047260210.51
200933,19427,4575,7379265783.81
201031,70325,8885,8159555533.86
201135,61429,8845,7309645043.90
201240,61032,8587,7529934715.29
Sewer Utility
FiscalLessNet
Year EndedSewerOperatingAvailable
June 30RevenueExpensesRevenuePrincipalInterestCoverage
200622,78813,0229,7663,7612,0001.70
200724,12714,6829,4453,9271,8531.63
200822,90015,9206,9814,1101,6841.20
200922,04614,8157,2314,2961,5171.24
201023,04717,3655,6824,4951,3380.97
201123,76616,3827,3844,4391,1411.32
201225,62316,2619,3624,6519511.67
Tax Allocation Bonds
Fiscal
Year EndedTax
June 30IncrementPrincipalInterestCoverage
2006171051.13
2007181051.21
2008201041.43
2009281032.10
2010281032.23
2011541024.53
2012*411512.55
* Outstanding Tax Allocation Bonds were transferred to the Successor Agency to the City's
redevelopment agency that was dissolved on February 1, 2012
Notes:
Operating expenses do not include interest or depreciation expense.
Information prior to fiscal year 2006 is not available, as it was not developed in the format
required prior to this date.
Debt Service
Debt Service
Debt Service
CITY OF SAN BERNARDINO
Statistical Section
Demographic and Economic Statistics
Last Ten Calendar Years
-245-
PersonalPer Capita
CalendarIncomePersonalUnemployment
YearPopulation (1)(in thousands) (2)Income (2)Rate (3)
2001190,232$ 4,365,634$ 22,949$ 5.2%
2002189,800 4,421,201 23,294 6.2%
2003194,100 4,614,145 23,772 6.2%
2004196,300 4,928,700 25,108 5.7%
2005199,521 5,201,113 26,068 5.3%
2006201,396 5,464,679 27,134 4.9%
2007204,620 5,734,271 28,024 5.8%
2008205,493 6,295,073 30,634 8.3%
2009208,318 6,168,088 29,609 13.5%
2010*209,924 6,245,029 29,749 14.3%
Sources:
(1) League of California Cities for 1996‐2004, California Department of Finance for subsequent years
(2)CaliforniaLaborMarketInfo,MeasuresofIncome(SanBernardinoCounty)for1996‐2004,Bureauof
EconomicAnalysis,RegionalEconomicAccountsforsubsequentyears
(3) U.S. Department of Labor, Bureau of Labor Statistics (Riverside‐San Bernardino‐Ontario
Metropolitan Statistical Area) for all years shown
* Most recent complete year available
CITY OF SAN BERNARDINO
Statistical Section
Principal Employers
Last Six Fiscal Years
-246-
Approximate Number of Employees
Principal Employers200620072008200920102011
Cal State University - San Bernardino1000+1000+1000+500-9991000+1000+
Caltrans District 81000+1000+1000+1000+1000+1000+
City of San Bernardino1000+1000+1000+1000+1000+1000+
Community Hospital1000+1000+1000+500-9991000+1000+
Corona Regional Medical Center1000+1000+****
Renzenberger, Inc1000+1000+****
San Bernardino City Unified School
District1000+1000+1000+1000+1000+1000+
San Bernardino Community College
District1000+1000+****
San Bernardino County Sheriff1000+1000+1000+1000+1000+1000+
San Bernardino County Superintendant
of Schools**1000+1000+1000+1000+
San Manuel Band of Mission Indians**1000+1000+1000+1000+
Stater Bros Markets**1000+1000+1000+#
St. Bernardine Medical Center**1000+1000+1000+1000+
Arrowhead Credit Union500-999500-999****
BNSF Railway**500-999500-999*^
Inland Regional Center for Management500-999500-999****
Omnitrans500-999500-999500-9991000+500-999500-999
San Bernardino County Public Works**500-9991000+500-999500-999
San Bernardino Valley College1000+1000+500-999500-999*^
Starwood Vacation Ownership500-999*****
Wells Fargo Home Mortgage***1000+1000+1000+
San Bernardino Community Hospital****1000+1000+
Actual employment numbers not available.
Information prior to fiscal year 2006 is not available, as it was not developed in the format required prior
to this date.
* = Not considered to be a prinicpal employer in that year
^ = Could not verify for fiscal years 2010 or 2011
# = Could not verify for fiscal year 2011
Source: City of San Bernardino Employment and Training Agency for years 2006-2008;
Employment Development Department for subsequent years.
2011 is the most recent data available.
CITY OF SAN BERNARDINO
Statistical Section
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
-247-
Fiscal Year
Function2003200420052006200720082009201020112012
General Government228222209210223289269264245204
Public Safety628633653667688790754746779640
Streets12111810711011012094688261
Culture & Recreation268268272272274162160157175218
Community Development22222327333223323628
Economic Development2222221717223539440
Community Service270269268268269159111204115213
Enterprise349357356369380398379385361365
Total1,9081,9111,9101,9401,9941,9721,8251,8951,8371,729
Source: Budgeted positions for full and part time employees
CITY OF SAN BERNARDINO
Statistical Section
Operating Indicators by Function
Last Seven Fiscal Years
-248-
Fiscal Year
2006200720082009
Police:
Arrest16,955 15,967 15,600 14,725
Parking citations issued25,411 21,917 30,782 35,042
Fire:
Number of emergency calls25,282 24,323 29,668 29,436
Inspections7,646 5,242 5,464 6,211
Public Works/Public Services:
Street resurfacing (lane miles)382 80 28 24
Parks and Recreation:
Number of recreation classes150 150 29 153
Number of facility rentals410 410 556 474
Water:
New connections563 511 172 138
Average daily consumption
(thousands of gallons)44,583 44,863 48,208 45,825
Sewer:
New connections952 542 240 67
Average daily sewage treatment
(thousands of gallons)26,500 27,000 26,090 24,590
Information prior to fiscal year 2006 is not available, as it was not developed in the format required prior
to this date.
Source: Various City departments
continued
-249-
Fiscal Year
201020112012
13,733 13,620 8,346
24,266 27,606 16,608
29,578 25,720 25,734
5,344 6,144 3,476
31 23 7
346 501 357
372 268 247
37 43 96
41,228 41,489 41,354
26 25 53
21,670 23,590 22,890
CITY OF SAN BERNARDINO
Statistical Section
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
-250-
Fiscal Year
200320042005200620072008
Pubic Safety:
Police stations1 1 1 1 1 1
Fire stations12 12 12 12 12 12
Streets/Community Development:
Miles of streets614 621 621 625 628 628
Street lights (City maintained5,000 5,000 5,000 5,100 5,100 5,100
Street lights (SCE maintained)6,351 6,351 6,351 6,400 6,400 6,980
Street traffic controllers (signals)237 246 251 255 255 262
Street traffic controllers (ped-xing)21 21 21 21 21 21
Culture and Leisure:
Parks43 43 43 26 28 39
Park acreage510 510 510 498 504 550
Water:
Water mains (miles)579 590 600 551 575 581
Sewer:
Sanitary sewers (miles)500 507 507 509 509 510
Source: Various City departments
continued
-251-
Fiscal Year
2009201020112012
1 1 1 1
12 12 12 12
628 629 629 629
5,100 5,100 5,100 5,900
6,502 7,700 7,700 7,500
268 272 272 272
20 19 19 19
39 39 39 37
618 618 618 441
583 584 586 587
510 510 510 510
CITY OF SAN BERNARDINO
Statistical Section
Water Sold by Type of Customer
Last Ten Fiscal Years
-252-
(in millions of gallons)
Fiscal Year
200320042005200620072008
Type of Customer:
Residential9,415 10,278 9,494 10,023 10,491 9,893
Commercial2,569 2,791 2,681 2,753 2,949 2,744
Municipal536 526 511 534 586 559
Landscape1,480 1,521 1,376 1,585 1,736 1,699
Other Agencies364 117 77 51 613 441
Total14,363 15,234 14,140 14,945 16,375 15,335
Total direct rate
per 1,000 gallons1.30$ 1.28$ 1.29$ 1.29$ 1.52$ 1.57$
continued
-253-
Fiscal Year
2009201020112012
9,463 8,779 8,399 8,627
2,442 2,208 2,188 2,144
547 528 470 501
1,818 1,637 1,579 1,723
408 285 154 149
14,677 13,437 12,791 13,144
1.70$ 1.82$ 2.17$ 2.53$
CITY OF SAN BERNARDINO
Statistical Section
Water Rates
Last Ten Fiscal Years
-254-
FiscalMonthlyRate per
Year EndedBase1,000
June 30RateGallons
20038.05$ 1.24$
20048.05 1.24
20058.05 1.24
20068.05 1.24
20078.32 1.28
20088.59 1.32
20098.80 1.36
201010.55 1.52
201112.20 1.59
201212.90 1.66
Note:
Ratesarebasedon5/8"meter,whichisthestandard
householdmetersize.Thedepartmentcharges$0.22per
1,000gallonsforexcess-userateabovenormaldemand.
Source: City Water Department
CITY OF SAN BERNARDINO
Statistical Section
Principal Water Customers
Current Fiscal Year and Ten Years Ago
-255-
Percent ofPercent of
WaterTotal WaterWaterTotal Water
Water CustomerChargesRevenuesChargesRevenues
City of San Bernardino897,479$ 2.61%107,224$ 0.57%
SB Unified School District763,294 2.22%559,267 2.97%
County of San Bernardino325,578 0.95%223,392 1.19%
Baseline Mutual Water270,116 0.78%
Housing Authority259,938 0.75%267,579 1.26%
California State University237,410 0.69%269,486 1.43%
Cott Beverages228,404 0.66%106,001 0.56%
City of San Bernardino E.D.A211,000 0.61%
California Dept. of Transportation164,449 0.48%149,937 0.80%
Pama Management118,218 0.34%
City of Colton299,218 1.59%
Rialto School District114,240 0.61%
North Pointe Apts84,336 0.45%
3,475,886$ 10.09%2,180,680$ 11.43%
Source: Customer Services Department
20022012