CAFR 2010-11 - City of Aliso Viejo

Transcription

CITY OF ALISO VIEJO, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR FISCAL YEAR ENDED JUNE 30, 2011
Prepared by:
Financial Services
Gina M. Tharani
Director of Financial Services/City Treasurer
THIS PAGE INTENTIONALLY LEFT BLANK
CITY OF ALISO VIEJO
TABLE OF CONTENTS
Page
Number
INTRODUCTORY SECTION
Letter of Transmittal .................................................................................................................................. i
GFOA Certificate of Achievement .......................................................................................................... viii
Organizational Chart ................................................................................................................................ ix
List of Officials .......................................................................................................................................... x
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT ................................................................................................... 1
MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................................................. 3
BASIC FINANCIAL STATEMENTS
Government–Wide Financial Statements:
Statement of Net Assets .................................................................................................................. 15
Statement of Activities ..................................................................................................................... 16
Fund Financial Statements:
Balance Sheet – Governmental Funds............................................................................................ 18
Reconciliation of the Balance Sheet of Governmental Funds
to the Statement of Net Assets ........................................................................................................ 21
Statement of Revenues, Expenditures and Changes in Fund
Balances – Governmental Funds .................................................................................................... 22
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ..................................................................................................................... 24
Budgetary Comparison Statements:
General Fund ............................................................................................................................ 25
Gas Tax ................................................................................................................................ 26
Development Impact ................................................................................................................. 27
Conference Center .................................................................................................................... 28
Statement of Fiduciary Net Assets – Fiduciary Funds .................................................................... 29
Notes to Basic Financial Statements ..................................................................................................... 31
CITY OF ALISO VIEJO
TABLE OF CONTENTS (Continued)
Page
Number
REQUIRED SUPPLEMENTARY INFORMATION
Notes to Required Supplementary Information ............................................................................... 51
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds ........................................................ 56
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances – Nonmajor Governmental Funds ...................................................................... 60
Budgetary Comparison Schedules – Special Revenue Funds:
Traffic Congestion Relief ........................................................................................................... 64
Measure M ................................................................................................................................ 65
Public Safety Grants ................................................................................................................. 66
Air Quality Improvement............................................................................................................ 67
Integrated Waste Management................................................................................................. 68
Other Grants ............................................................................................................................. 69
Technology Grants .................................................................................................................... 70
Federal Grants .......................................................................................................................... 71
Aquatics Center......................................................................................................................... 72
Budgetary Comparison Schedules – Capital Projects Funds:
Street Improvements ................................................................................................................. 73
Capital Improvements ............................................................................................................... 74
Storm Water ............................................................................................................................. 75
2006 COP ................................................................................................................................. 76
2005-01 CFD ............................................................................................................................. 77
Budgetary Comparison Schedules – Debt Service Funds:
Debt Service .............................................................................................................................. 78
Agency Funds:
Combining Balance Sheet - All Agency Funds ......................................................................... 81
Combining Statement of Changes in Assets and Liabilities All Agency Funds ...................................................................................................................... 82
CITY OF ALISO VIEJO
TABLE OF CONTENTS (Continued)
Page
Number
STATISTICAL SECTION
Net Assets by Component – Table 1 ............................................................................................... 87
Changes in Net Assets – Table 2 .................................................................................................... 88
Fund Balances of Governmental Funds – Table 3 .......................................................................... 89
Changes in Fund Balances of Governmental Funds – Table 4 ...................................................... 90
General Government – Expenditures by Function – Table 5 .......................................................... 91
General Government – Revenues by Source – Table 6 ................................................................. 92
General Government – Tax Revenues of Source – Table 7 ........................................................... 93
Principal Sales Tax Producers by Category – Table 8 .................................................................... 94
Property Tax Levies and Collections – Table 9 ............................................................................... 95
Assessed and Estimated Actual Value of Taxable Property – Table 10 ......................................... 96
Direct and Overlapping Property Tax Rates – Table 11.................................................................. 97
Principal Property Taxpayers – Table 12 ........................................................................................ 98
Ratios of Net Direct General Obligation Debt – Table 13 ............................................................... 99
Computation of Direct and Overlapping Bonded Debt – Table 14 ................................................ 100
Legal Debt Margin – Table 15 ....................................................................................................... 101
Demographic and Economic Statistics – Table 16 ........................................................................ 102
Principal Employers – Table 17 ..................................................................................................... 103
Operating Indicators by Function – Table 18 ................................................................................ 104
Full-Time and Part-Time City Employees by Function – Table 19 ................................................ 105
Capital Assets Statistics by Function – Table 20 .......................................................................... 106
Schedule of Insurance – Table 21 ................................................................................................. 107
Miscellaneous Statistical Information – Table 22 .......................................................................... 108
This CAFR includes the financial activity for all funds of the City. In addition to the fund-by-fund
financial information presented in the City’s financial statements, government-wide financial
statements are also included. The government-wide financial statements include a Statement
of Net Assets that provides the total net equity of the City, including infrastructure, and the
Statement of Activities that shows the cost of providing government services. These statements
have been prepared using the accrual basis of accounting versus the modified accrual method
used in the fund financial statements. A reconciliation report is provided as a key to
understanding the changes between the two reporting methods. In addition, the Statement 34
standard includes an emphasis on the City’s major funds as shown in the Governmental Fund
Statements. These statements, combined with other information, are further analyzed in a
narrative section called Management’s Discussion and Analysis (MD&A). The MD&A provides
“financial highlights” and interprets the financial reports by analyzing trends and explaining
changes, fluctuations, and variances in the financial data. In addition, the MD&A is intended to
disclose any known significant events or decisions that affect the financial condition of the City.
This letter of transmittal is designed to complement the MD&A and should be read in
conjunction with it.
PROFILE OF THE CITY
The City of Aliso Viejo was incorporated July 1, 2001 as a general law city under the laws of the
State of California. The City of Aliso Viejo encompasses approximately seven (7) square miles in
south Orange County and has a population of approximately 47,800 people. Approximately 46
miles south of Los Angeles and 70 miles north of San Diego, the City is adjacent to the cities of
Laguna Beach, Laguna Woods, Laguna Hills and Laguna Niguel.
The City operates under the Council-Manager form of government. The City Council is comprised
of five members elected at large for staggered four-year terms of office. The Mayor and Mayor Pro
Tem are selected by the Council from among its members to serve one-year terms. The Council
acts as the legislative and policy-making body of the City, enacting all laws and directing such
actions as required, to provide for the general welfare of the community.
The City Manager is appointed by the City Council and is responsible for overseeing the operations
of the City and implementing the policy decisions made by the City Council. The City Attorney, City
Treasurer, and City Clerk are also appointed by the City Council. All other department heads and
employees are appointed by the City Manager.
The City provides municipal services through contracts for police and fire services, public works,
building, engineering, code enforcement, recreation, and legal services. The Aliso Viejo
Community Association, a master community association, owns and manages 21 parks within the
City limits. This association also maintains most of the landscaped slopes and parkways. The City
owns and manages Iglesia Park, Vista Park, and the Aliso Viejo Ranch property. The Orange
County Library System provides public library services.
Prior to the beginning of each fiscal year, the City Council adopts the annual budget, which
serves as the foundation for the City’s financial planning and control. The budget is arranged by
fund, function and department and presented to the Council by the City Manager. The level of
budgetary control is established at the fund level. Transfers of appropriations between
department budgets can be made with City Manager and Director of Financial Services
approval. The City Council’s approval is required for all budget amendments that result in a
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change to the adopted budget. The budget is reviewed mid-year in January by the City
Manager and the Director of Financial Services to ensure compliance with City Council
direction. The Mid-Year Budget is then reviewed by the City Council and consideration is given
to necessary adjustments for new programs, projects and other adjustments to ensure that
expenditures and revenues are in line with the budgeted projections.
The City also maintains an encumbrance accounting system as an additional method of
accomplishing budgetary control. As demonstrated by the statements and schedules included
in the financial section of this report, the City continues to meet its responsibility for sound
financial management.
ECONOMIC CONDITION AND OUTLOOK
The national economy is still struggling to rebound after the recession of 2008-09.
Fundamentals of the economy, such as employment and consumer spending, never gained
steam as expected and prevented a robust recovery from occurring. National GDP stagnated
below 1% in early 2011 and unemployment remains around 9%, reflecting stifled job markets,
weak consumer demand and business investments, and extremely volatile financial markets.
Further adding to the woes of households is the 3.9% rise in consumer prices over the last 12
months. Increases in energy and food prices are mainly to blame; energy costs soared 19.3%
and food prices rose 4.7% over the past year.
The Federal Reserve continued to maintain interest rates at near-zero levels and, in August,
declared it would continue its current practice of keeping rates this low through at least mid2013. Nevertheless, these extremely low rates failed to incentivize borrowing for homes and
autos as households are still reducing debt loads made worse during the recession. High
unemployment and the lack of consumer demand remain the biggest threats to a more robust
recovery. Housing markets are not expected to rebound until late 2013 at the earliest, although
both housing and commercial real estate markets are expected to stabilize mid-2012 before
trending upward.
Repercussions from the State’s efforts to balance its budget continue to affect counties and
other local governments. The State is currently relying on optimistic revenue projections to
claim a balanced budget and prevent further spending cuts. If revenues do not meet these
projections, additional spending cuts to education and social services will be triggered. The
County of Orange was also heavily impacted by the State’s decision to retain motor vehicle
license fees. The County’s resulting budget deficit of $49.5 million will likely mean service cuts
to County public safety services, including offices of the District Attorney and Public Defender,
as well as staff layoffs and a dip into their reserves.
LOCAL ECONOMY
Although California’s unemployment rate is among the highest in the nation at 11.4%, Orange
County’s rate has been consistently lower. Unemployment in Orange County was 8.6% in
September 2011, down from 9.5% a year ago. The County’s regional economy suffered a
contraction during the recession mainly due to the concentrated financial services industry and
reliance on residential construction for jobs and income growth. Nonetheless, the County was
the first in the State to add jobs due to continued growth in the high tech, manufacturing, and
health services industries.
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Based on recent economic forecasts by California State University, Fullerton, and Chapman
University, Orange County’s economy is expected to continue its trend of slow, stalled growth.
Home prices are expected to stabilize at the current post-recession low levels. Overall demand
for new and existing homes remains weak as prospective buyers have been put off by strict
lending requirements and few incentives. The loss of equity from recession price declines has
also stifled movement in the local market.
Aliso Viejo is comprised of single-family homes, condominiums, and apartments as well as a
mixture of retail, office, light industrial, and service entities providing a solid tax base for the City.
Most businesses are oriented toward serving local residents and visitors. The City is nearly
built-out, with limited future opportunities for new residential or commercial construction.
However, non-local businesses continue to seek existing retail space within the City and some
existing businesses have plans to expand or revitalize their current space, which bodes well for
the future economic condition of the City.
Office vacancies in south Orange County have fallen from the recession peak of 18% to about
16.7% in the third quarter of 2011. Significant leasing and sales activity by businesses in the
health services, pharmaceutical, computer services, and semi-conductor industries contributed
to the drop in the City’s industrial and office space vacancies from 16.5% a year ago to 10.25%
in the third quarter of 2011. The dynamic local business environment and availability of
amenities in the community helped Aliso Viejo weather the recession and position the local
economy for future growth. In addition, Soka University’s recently opened Performing Arts
Center has further added to the vitality of the City by bringing in visitors from across the region
for performances by Soka students as well as professional performers.
The City’s major revenue sources are property taxes, sales taxes, franchise fees and transient
occupancy taxes. The City also receives significant revenue streams through the State of
California, including gasoline taxes, which are apportioned by the State based upon population,
and property taxes in-lieu of motor vehicle license fees, which are apportioned similarly to
property taxes. Through SB89, the State eliminated the Motor Vehicle License Fee (MVLF)
revenues being passed through to cities in order to retain those funds for state law enforcement
grants. In FY 2010-11, the City collected $270,180 in MVLF as general fund revenue, which
included $120,800 in prior year true up payments from the State to close out its fund.
Taxes were up 2.55% from FY 2009-10, largely due to higher than expected sales taxes,
franchise fees, and transient occupancy taxes. Sales Tax in Lieu increased 47.0% from FY
2009-10 due to a true up at the State level resulting from the Triple Flip reconciliation. Property
taxes stayed closely in line with FY 2009-10. Adjustments to assessed valuations due to
Proposition 8 had a minimal impact on Property Tax collections since the City collects only
.02134% of the basic 1% Property Tax levy. The median selling price of a home in Aliso Viejo
was $391,500 in September 2011, while the countywide median selling price was $425,000 in
this same period.
Residential construction continues at a steady pace in Shea Homes’ Glenwood and Vantis
developments, despite lingering effects of the recession. These developments have not only
provided a wider variety of living options for residents, but also brought in over $6.8 million in
development impact fees to date for use in community enhancement, affordable housing, traffic
mitigation and open spaces/trails projects. Glenwood includes several single-family and multifamily product types and designs, whereas the Vantis development is comprised of various
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types and sizes of condominiums and townhomes. Additionally, the City Walk project in Vantis
is also ongoing, bringing contemporary live/work spaces with residential units above the streetlevel commercial spaces.
These developer activities resulted in 3.5% higher revenues in Licenses and Permits than in FY
2009-10. Service Charges declined by 7.1%, however, these revenues are always offset by
proportional expenditures in the Public Works department. Development of the residential
portions of the Glenwood and Vantis projects is expected to be completed over the next three
years, although this timetable may be altered depending on the local economy and housing
market. Build out for the non-residential areas of Vantis will likely take longer due to the current
environment.
Overall, General Fund revenues for FY 2011-12 are expected to increase by about 1% over FY
2010-11. Sales Tax and intergovernmental revenues will see a slight increase that will partially
offset the decrease in Property Tax and Charges for Services revenues. Revenue projections
were based on conservative estimates to account for the weakened economy, stalled pace of
construction, and loss of MVLF revenues due to the State’s actions. Appropriations have been
maintained at prior year levels and keep levels of service constant.
LONG TERM FINANCIAL PLANNING
As of June 30, 2011, the City has assigned $15.1 million in the General Fund fund balance,
including $4.8 million for contingencies, $7.8 million for future replacement of City infrastructure
assets, $.5 million for future benefit obligations, and $2.0 million for other emergencies and
unanticipated traffic projects. The remainder of $8.4 million is unassigned.
The City has made a practice of living within its means since incorporation. In fiscal year 200506, the City Council formally adopted a Management and Budget policy to promote sound
financial management which, in turn, led to improved bond ratings and lower cost of capital.
General Fund surpluses, as well as outside funding sources when available, have been used to
fund projects as directed by City Council. To uphold the City’s reputation of excellent amenities
for residents and businesses, City staff continues to actively pursue outside grants and funding
opportunities whenever possible. For example, the City was successful in obtaining and
expending $347,975 in federal Community Development Block Grant (CDBG) funds for the
interior renovation of the Iglesia Park Community Center in FY 2010-11. In addition, the City
completed the energy efficiency upgrades to the City Hall HVAC system utilizing federal Energy
Efficiency and Conservation Block Grant (EECGB) funds received in FY 2009-10. The City
continues to be conservative with expenditures while maintaining adequate reserves in
accordance with City policies.
RELEVANT FINANCIAL POLICIES
Financial Services published an update to the City’s Five Year Strategic Plan in February 2011.
The purpose of this document is to identify key factors affecting the City’s fiscal outlook,
examine fiscal trends and analyze the General Fund’s ability over the next five years to continue
current services, maintain existing assets, and fund City Council initiatives. The next Five Year
Strategic Plan update will be published in February 2013.
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MAJOR INITIATIVES
The City initiated the development of the Town Center Loop Trail (TCLT) in fiscal year 2008-09,
in accordance with the Streets and Trails Amenities Master Plan adopted by the City Council in
2005. In addition to the TCLT, which encompasses the City’s thriving Town Center area, the
Master Plan also provides for three other walking/biking trails, each highlighting various scenic
views and unspoiled wilderness within the City. Together, the four trails will compose a system
of just over 20 miles of trails all designed to transform the City into a more pedestrian-oriented,
balanced community, adding to the identity of Aliso Viejo. Phase I of the Town Center Loop
Trail was completed in FY 2009-10; Phase II was completed in October 2011. Both phases
have been funded by a combination of Measure M, federal Transportation Enhancement grant
funds, and Community Enhancement developer fees.
Other major initiatives this year include improvements to various AVCA-owned parks within the
City. Projects include installing lights at the Aliso Niguel High School Batting Cages, installing
field lights and restrooms at Foxborough Park, and installing shade structures at Woodfield Park
and Aliso Viejo Community Park. Each of the park projects was planned with the involvement of
AVCA and the various community sports groups who frequently use the facilities. The City
partnered with Capistrano Unified School District to complete the batting cage project. The
projects are being funded by a combination of Community Enhancement funds the City received
from developer agreements and monies from the partnering user groups for each of the
facilities. Improvements to Creekside Park are still in planning stages, pending a resolution to
drainage issues on the fields. In addition, improvements are also scheduled at the AV Ranch, in
preparation for larger, more significant projects planned for the future.
In FY 2009-10, the City Council directed Planning department staff to proceed with the Green
City Initiative. The Green City Initiative plan includes the creation of a document comprised of
initiatives, goals, implementation measures, citywide greenhouse gas emissions footprint and
other relevant information. The City has held numerous “working group” meetings and public
workshops. Staff will be submitting an application to the California Strategic Growth Council for
a grant to assist with costs associated with preparing document. The Green City Initiative
document is expected to be completed in early 2012; however, monitoring and reporting on the
initiatives will be ongoing.
The Green City Initiative document will be used as one of the elements in the General Plan
update. Commenced in September 2011, the work program for the update includes regular
meetings with stakeholders and one or more public workshops. The General Plan update is
scheduled to be completed in 2013.
The City of Aliso Viejo/Shea Homes Homebuyer Assistance Program assisted 13 homebuyers
in FY 2010-11 (for a total of 37) to purchase one and two bedroom affordable units within the
Glenwood Harbor Station or Vantis Latitudes residential developments. A total of 78 affordable
units are planned for construction within the two developments.
The City’s Crime Prevention Unit’s multi-faceted safety programs provided Aliso Viejo parents
and children with various opportunities to learn “safety smart” practices. More than 1,000
children and their parents participated in four elementary schools’ Walk to School Day events.
Additionally, the City partnered with Target to sponsor National Night Out in August 2011 to
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Organization Chart
of
The City of Aliso Viejo
June 30, 2011
* Contract Services
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CITY OF ALISO VIEJO
LIST OF PRINCIPAL OFFICIALS
Council-Manager Form of Government
CITY COUNCIL
CARMEN CAVE, Ph.D.
Mayor
DONALD A. GARCIA
Mayor Pro Tem
GREG FICKE
Council Member
WILLIAM PHILLIPS
Council Member
PHILLIP B. TSUNODA
Council Member
CITY ADMINISTRATION
MARK A. PULONE
City Manager
Scott Smith, City Attorney
Gina M. Tharani, Director of Financial Services/City Treasurer
Susan A. Ramos, City Clerk
Albert Armijo, Director of Planning Services
John Whitman, City Engineer/Public Works Director
Glenn Yasui, Director of Administrative Services
Karen Crocker, Director of Community Services
Lieutenant Robert Osborne, Chief of Police Services
Division Chief Craig Kinoshita, Fire Services (Orange County Fire Authority)
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Brandon W. Burrows, CPA
David E. Hale, CPA, CFP
A Professional Corporation
Donald G. Slater, CPA
Richard K. Kikuchi, CPA
Susan F. Matz, CPA
Shelly K. Jackley, CPA
Bryan S. Gruber, CPA
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of City Council
City of Aliso Viejo, California
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of City of Aliso Viejo, California, as of and for the year
ended June 30, 2011, 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 Aliso Viejo, California's
management. Our responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes 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 provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate remaining
fund information of the City of Aliso Viejo, California, as of June 30, 2011, and the respective changes in
financial position, thereof, and the respective budgetary comparison for the General Fund, Gas Tax Fund,
Development Impact Fund, and Conference Center for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
October 17, 2011, on our consideration of the City of Aliso Viejo, 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 and the modified approach for the City’s Infrastructure capital assets 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
Lance, Soll & Lunghard, LLP
203 North Brea Boulevard Suite 203 Brea, CA 92821 TEL: 714.672.0022 Fax: 714.672.0331
41185 Golden Gate Circle Suite 103 Murrieta, CA 92562 TEL: 951.304.2728 Fax: 951.304.3940
www.lslcpas.com
To the Honorable Mayor and Members of the City Council
City of Aliso Viejo, California
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.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Aliso Viejo, California's financial statements as a whole. The introductory section,
combining and individual nonmajor fund financial statements, 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 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.
Brea, California
October 17, 2011
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MANAGEMENT’S DISCUSSION AND ANALYSIS
Our discussion and analysis of the City of Aliso Viejo’s financial performance provides an
overview of the City’s financial activities for the year ended June 30, 2011. Please read it in
conjunction with the transmittal letter at the front of this report and the accompanying basic
financial statements, which follow this section.
FINANCIAL HIGHLIGHTS
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The General Fund fund balance increased by 8.6% from fiscal year 2009-10, for a total
balance of $23,505,747. This fund balance is comprised of non-spendable reserves of
$90,565, assigned reserves of $15,050,727 and $8,364,455 of unassigned reserves.
The unassigned reserves amount for the fiscal year ended June 30, 2011 is equal to
62.2% of fiscal year 2010-2011’s Adopted Budget General Fund Expenditures.
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The General Fund’s actual resources available for appropriation (revenue inflows)
exceeded the final budget by $674,898 and actual appropriations (outflows) were
$468,854 under budget.
x
The City decreased its overall net assets by $555,985, for a total net asset balance of
$129,140,674 as a result of current year operations discussed below.
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The overall fund balance decreased by $172,755, for an All Funds Balance of
$38,515,655.
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The total revenue from all sources equaled $18,241,924.
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The total cost of all City programs equaled $18,797,909.
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The City spent $1,961,706 for its street improvement and maintenance projects; this
includes slurry seal, median and traffic intersection improvement projects.
x
Special Revenue Funds, including Traffic Congestion Relief Funds (TCRF), Gas Tax,
and Measure M, contributed $1,099,445 towards the City’s slurry seal, traffic intersection
improvement projects and projects that support a walkable community.
x
Federal Grants contributed $504,848 towards capital projects, including an interior
renovation of the Iglesia Park community center building and energy efficiency
improvements to the HVAC system in City Hall.
USING THIS ANNUAL REPORT
This annual report consists of a series of financial statements. The Statement of Net Assets
and the Statement of Activities provide information about the activities of the City as a whole
and allow a longer-term view of the City’s finances. Fund Financial Statements tell how City
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.
Reporting the City as a Whole:
Activities
The Statement of Net Assets and the Statement of
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
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include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting method 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. These two
statements report the City’s net assets and changes in them. The City’s net assets, the
difference between assets and liabilities, are one way to measure the City’s financial health, or
financial position. Over time, increases or decreases in the City’s net assets are one indicator
of whether its financial health is improving or deteriorating. Consideration should also be given
to other non-financial factors, such as changes in the City’s property tax base and the condition
of the City’s roads, to assess the overall health of the City.
All of the City’s basic services are considered to be governmental activities. The Statement of
Net Assets and the Statement of Activities present information about these governmental
activities, including: general government, community development, community services, public
safety, and public works. Property tax, sales tax, transient occupancy tax, and franchise fees
finance nearly 65.4% of these activities.
Reporting the City’s Most Significant Funds: Fund Financial Statements
The Fund Financial Statements provide detailed information about the most significant
funds - not the City as a whole. Included are the General Fund, Gas Tax, Development Impact
Fund, Aliso Viejo Conference Center, Street Improvements Fund and CFD 2005-01 Fund as
well as lesser funds reported collectively as Non-major Governmental Funds. Some funds are
required to be established by State law, however, the City Council establishes many other funds
to help it control and manage money for particular purposes or to show that it is meeting legal
responsibilities for using certain taxes, grants, and other money. The City currently has just one
type of fund - governmental - which uses the modified accrual accounting approach.
Governmental funds focus on how money flows into and out of those funds and the balances
left at year-end that are available for spending. Most of the City’s basic services are reported in
governmental funds. Under this method of accounting, revenues are recognized in the
accounting period in which they become measurable and available to finance expenditures of
the current fiscal period while expenditures are recognized in the accounting period in which the
liability is incurred.
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
the reader determine whether there are more or less financial 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 funds are described in the reconciliation at the bottom of the fund financial
statements.
The City as Trustee: Reporting the City’s Fiduciary Responsibilities
The City is the trustee, or fiduciary, for certain amounts held on behalf of developers, property
owners, and others. The City’s fiduciary activities are reported in the Statement of Fiduciary
Assets and Liabilities. We exclude these activities from the City’s other financial statements
because the City cannot use these assets to finance its operations. The City is responsible for
ensuring that the assets reported in these funds are used for their intended purposes.
4
THE CITY AS A WHOLE
Our analysis focuses on the net assets (Table 1) and changes in net assets (Table 2) of the
City’s governmental activities. The City has no business type activities.
Table 1
Net Assets
June 30, 2011
Governmental Activities
2011
2010
Current and other assets
Capital assets, net
$ 39,880,725
98,136,941
$ 40,921,842
98,102,312
Total Assets
138,017,666
139,024,154
Non-current liabilities
7,612,366
7,871,519
Other liabilities
1,264,626
1,455,976
Total Liabilities
8,876,992
9,327,495
Invested in capital assets, net
Restricted
90,618,780
15,052,837
90,838,229
10,137,407
Unrestricted
23,469,057
28,721,023
$129,140,674
$129,696,659
Net Assets:
Total Net Assets
Total net assets decreased to $129,140,674 in FY 2010-11 from $129,508,586 in FY 2009-10
due to the following:
x
Net assets decreased .4% or $555,985 as a result of current year operations. Current
assets decreased by .7% due to reimbursements for construction costs for CFD 2005-01
thus decreasing cash and investments held by the fiscal agent. Current liabilities also
decreased by 4.2% due to a decrease in accounts payable, bonds payable and deferred
revenues.
x
Net assets include investment in Capital Assets net of related debt in the amount of
$90,618,780.
5
Fiscal Year 2011 Governmental Activities
(See Table 2)
Sources of Revenue
Taxes
67.5%
Operating and
Capital
Contributions &
Grants
19.0%
Charges for Service
Investment Motor Vehicle in
10.7%
Income/Other
Lieu Tax
1.3%
1.5%
Functional Expenses
Community
Development
6.6%
Community Services
8.6%
Public Works
33.9%
General
Government
14.2%
Interest and Fiscal
Charges
2.1%
Public Safety
34.7%
6
Table 2
Change in Net Assets
Year Ended June 30, 2011
2011
2010
$ 1,960,206
3,463,190
-
$ 1,861,525
2,355,183
800,983
4,213,850
5,986,652
1,490,642
622,710
270,180
170,154
64,340
3,896,695
6,084,737
1,466,541
559,261
134,924
156,972
202,326
18,241,924
17,519,147
2,670,620
1,231,346
1,625,617
6,367,126
6,516,727
386,473
2,597,576
1,109,926
1,368,481
11,302,397
6,475,501
394,224
Total expenses
18,797,909
23,248,105
Increase (decrease) in net assets
$ (555,985)
$ (5,728,958)
Revenues
Program Revenues:
Charges for Services
Operating Contributions & Grants
Capital Contributions & Grants
General Revenues:
Taxes:
Sales Taxes
Property Taxes
Franchise Taxes
Transient Occupancy Taxes
Motor Vehicle License Fees
Investment Income
Other
Total revenues
Expenses
General Government
Community Development
Community Services
Public Works
Public Safety
Interest and Fiscal Charges
Overall, the City fared very well despite the instability in financial markets and the general
economy. The City’s total revenues were $18,241,924, while the total cost of all programs and
services was $18,797,909. Revenues were up 4.4% or $722,777. Charges for Services were
up 7.6%, or $98,681 primarily as a result of the current pace of projects and development within
the City. In addition, due to recent legislation which resulted in the loss of future Motor Vehicle
License Fee (MVLF) revenues, the State provided cities with a reconciliation of catch up MVLF
in the amount of $120,800. Increases in Operating Contributions and Grants were $1,108,007
or 41.2%. The two main contributors were Measure M competitive monies and Federal Grants
that were expended in the prior year but collected this year. Capital Contributions and Grants
also decreased due to the change in deferred revenues for capital projects that were collected
in the current year.
7
Revenues were stable for the year with a slight increase in taxes. The City’s main revenue
streams consist of Property Tax, Sales Tax, Franchise Fees, and Transient Occupancy Taxes.
Property Taxes have been the most reliable local government revenue for decades and are the
City’s largest revenue source at $6.0 million. Property Tax in Lieu was the main component for
the decrease in Property Taxes since this revenue is directly impacted by the rate of growth in
assessed valuation. Sales Tax, the City’s second largest revenue source, was 8.1% greater
than in FY 2009-10 at $4.2 million and Franchise Fees were 1.6% higher at $1.5 million.
Transient Occupancy Tax (TOT) has become another reliable source of revenue for the City at
$.6 million. The current performance of City revenues is reflective of the present state of the
economy as well as the impacts of the changes in the State Budget, which included the Motor
Vehicle License Fee/Property Tax swap and the rippling effect of the Triple Flip. Additionally,
investment earnings are still well below historical averages due to the non-existent interest rate
environment. These significant revenues fund a large part of the City’s basic services.
The City’s total expenses were $18,797,909, which includes paying for the entire cost of police
protection, animal control services, NPDES (storm water runoff), street repairs, recreation
programs, administrative costs and capital outlay. In addition, the net operating cost of
$369,755 for the Aliso Viejo Conference Center and Aquatic Center are also included. The large
decrease of $4.9 million in Public Works expenditures was largely due to lower capital outlay for
street rehabilitation projects, the slowdown in construction activity and, consequently, a
reduction in reimbursement costs for CFD 2005-01. Prior year expenditures included a
$6 million reimbursement on construction costs for CFD 2005-01. Long-term debt commitments
included lease payments for the 2006 Certificate of Participation issue.
Government Activities
Tables 3 and 3A present the cost of each of the City’s programs: General Government
(Administrative Services), Community Development, Community Services, Public Safety, and
Public Works, as well as each program’s net cost (total cost less revenues generated by the
activities
Table 3
Net Cost of Governmental Activities
Total Cost
of Services
Program
Revenues
Net (Revenue)/
Cost of Service
General Government
Community Services
Public Works
Public Safety
Interest and fiscal charges
$ 2,670,620
1,231,346
1,625,617
6,367,126
6,516,727
386,473
$ (243,245)
(2,666,583)
(569,518)
(1,497,444)
(446,606)
-
$ 2,427,375
(1,435,237)
1,056,099
4,869,682
6,070,121
386,473
Total
$18,797,909
$(5,423,396)
$13,374,513
8
Table 3A
Net Cost of Governmental Activities
Total Cost
of Services
Program
Revenues
Net (Revenue)/
Cost of Service
General Government
Community Services
Public Works
Public Safety
$ 2,597,577
1,109,927
1,368,481
11,302,397
6,475,499
394,224
$ (236,992)
(1,885,747)
(340,717)
(2,083,771)
(470,464)
-
$2,360,585
(775,820)
1,027,764
9,218,626
6,005,035
394,224
Total
$23,248,105
$(5,017,691)
$18,230,414
General Government expenditures are 14.2% of the total governmental expenditures and
include City Council, City Manager, City Attorney, City Clerk, Non-Departmental, and Financial
Services. Charges for Services and Operating Contributions & Grants contribute towards
subsidizing the cost of this program.
Community Development expenditures are 6.6% of the governmental services expense and
include Economic Development, Planning, Building and Safety, and Code Enforcement
activities. Various building and planning fee revenues reduce the cost of this program. Also
included in the program revenues are development impact fees in the amount of $732,557. The
change in revenues from prior year is primarily due to the timing in receipt of development fees.
In addition, completion of preliminary work on the General Plan update and Green City Initiative
were the two main contributors towards the increase in program expenditures.
Community Services expenditures are 8.6% of the governmental services expenditures and
include Community Services, the Family Resource Center and Iglesia Park operating costs, and
the Aliso Viejo Conference Center and Aquatic Center. Increases in both revenues and
expenditures were primarily a result of the expanded operation of the City Facilities. Included in
the revenues are fees brought in by the city facilities in the amount of $561,452.
Public Works expenditures are 33.9% of the governmental services expenditures. The Public
Works department manages all street and traffic maintenance, capital improvement projects and
any other major construction projects. Special Revenue funds, which are comprised of Gas
Tax, Measure M and Traffic Congestion Relief monies, are used to subsidize the cost of this
program. Capital outlay costs for CFD 2005-01 were the main contributor to the decrease in
cost of services. In addition, program revenues decreased due to the deferral of prior year grant
funds that were expended in FY 2010-11.
Public Safety expenditures comprise 34.7% of the governmental services expenses. Revenue
from Fines, Fees & Forfeitures and Operating Contributions & Grants assist with offsetting the
costs of this program.
Debt service expenditures are 2% and include interest and fiscal charges for the Certificates of
Participation issued by the City in August 2006 for the acquisition of City Hall.
9
FINANCIAL ANALYSIS OF THE CITY’S FUNDS
At year-end, the City’s Governmental Funds reported a combined Fund Balance of
$38,515,655, a decrease of $172,755 from the prior year. Some of the minor factors
contributing towards the change in fund balance have already been highlighted. More
significantly, $3,257,209 was reimbursed for construction costs of the City facilities through CFD
2005-01. The Development Impact Fund had a net receipt of $730,557 due to Community
Enhancement and Housing in Lieu fees. The City expended $1,099,445 in special revenue
funds, including Measure M and Traffic Congestion Relief, on multiple capital improvement
projects. Funds in the amount of $913,383 were expended from the Gas Tax Fund to maintain
and enhance the City’s streets, including street lighting and sweeping services. Federal Grant
monies of $504,848 were expended on capital improvement projects at Iglesia Park and City
Hall. Overall, City operations were consistent with prior year operating levels. The current fund
balance reserves reflect both compliance with the Management and Budget policy adopted by
the City Council and the City’s fiscal responsibility towards services.
General Fund Budgetary Highlights
Revenues: Actual revenues received exceeded the final year-end budget by $674,898, or
2.2%, which was primarily due to collections of prior year Property Taxes, reconciliation of
MVLF revenues and better than anticipated cost recovery on charges for City services. In
addition, clean up effects of the “Triple Flip” as well as the Property Tax swap added to the
ambiguity of revenues accrued during the year-end process, which may be impacted by true up
adjustments by the State. It is anticipated that revenues will stabilize as the State completes its
reconciliations.
Expenditures: Actual expenditures incurred were $468,854, or 1.9%, less than the final
year-end budget as a result of the proactive approach by City Council, staff and departments.
Cost recoveries on charges for services are offset by proportional costs for providing these
services. Additional cost savings realized during FY2010-11 were due to the rollover of various
projects and programs to the new fiscal year.
Ending Fund Balance: Ending Fund Balance for the year increased by 8.6% from fiscal year
2009-10, for a total balance of $23,505,747, and exceeded the adopted budget by $1,143,752.
Included in this balance are non-spendable reserves of $90,565 and assigned reserves of
$15,050,727. The unassigned portion is the part of fund balance that is available for use without
constraints established by legal requirements and is $8,364,455. The unassigned fund balance
for the fiscal year ended June 30, 2011 is equal to 62.2% of fiscal year 2011-12’s Adopted
Budget General Fund Expenditures.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of June 30, 2011, the City had $98,136,941 invested in a broad range of capital assets,
including police equipment, buildings, land, park facilities, furniture and fixtures, and roads.
(See Table 4 below). Additions to capital assets were made in the amount of $896,044.
Additions included building improvements to the Iglesia Park Community Center and
intersection improvements. Depreciation expense in the amount of $861,416 was incurred in
FY 2010-11. For additional information on capital assets, refer to Note 5 of Notes to Basic
Financial Statements.
10
Table 4
Capital Assets at Year-End
(Net of Depreciation)
Asset Type
2011
Land
Buildings and Improvements
Equipment, Furniture & Fixtures
Other Infrastructure
Streets & Highways
Construction-in-Progress
Total
$14,315,978
18,304,645
194,392
11,113,128
53,871,430
337,368
$98,136,941
2010
$14,315,978
18,310,039
276,681
11,110,979
53,871,430
217,205
$98,102,312
Capital Assets at Year End
Fiscal Year 2010-11
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
Land
Buildings &
Improvements
Equipment,
Furniture &
Fixtures
Other
Infrastructure
Streets &
Highways
Construction in
Progress
The City of Aliso Viejo elected to use the modified approach in reporting their streets and roads
network. Under the modified approach, infrastructure assets that are part of a network or
subsystem of a network are not required to be depreciated as long as certain requirements
(which are disclosed in the accompanying basic financial statements and required
supplementary information) are met. In March, 2002, the City Council approved a condition
level of 80 as the minimum acceptable Pavement Condition Index (PCI). The following schedule
discloses a comparison between the City’s assessed condition level of the streets and roads
network as of June 30, 2010 and the City’s adopted target level of condition:
Assessment performed in fiscal year June 30, 2010:
Actual Assessed
Condition Level
Streets and roads
83.6
11
Minimum Condition
Level
80
Under the modified approach, GASB Statement No. 34 requires that condition assessments be
performed every three years. The City traditionally performs an assessment every two years
and completed one in fiscal year ended June 30, 2010. It is the City’s intention to have another
complete assessment performed on or before fiscal year ended June 30, 2012.
During the year ended June 30, 2011, actual streets and roads maintenance costs were
$1,961,706 compared to the estimate of $2,312,200. A cost of $2,100,000 was estimated to
achieve the minimum PCI standard as of June 30, 2012 for the subsequent year.
Non-Current Liabilities
Changes in non-current liabilities for the fiscal year ended June 30, 2011 were as follows :
Table 5
Non-Current Liabilities
June 30, 2011
Balance at
June 30, 2010
Compensated
Absences
COP
$
91,519
7,780,000
Total:
$ 7,871,519
Additions
Deletions
Balance at
June 30, 2011
Amount
Due
Within
One Year
Amount
Due Beyond
One Year
33,531
(30,845)
94,205
45,800
48,405
-
(140,000)
7,640,000
150,000
7,490,000
$ 33,531 $ (170,845)
7,734,205
$ 195,800
$ 7,538,405
Original issue discount
(121,839)
Total:
$ 7,612,366
Debt
On August 15, 2006, the Aliso Viejo Public Facilities Corporation issued $8,155,000 in 2006
Certificates of Participation to finance the acquisition of the building that is primarily used as City
Hall and to provide for certain tenant improvements for City Hall offices. Certificates of
Participation (COP) are special obligations of the issuer and are payable from specific pledged
revenues of the issuing agency. The certificates are not payable from any other revenues or
assets of the City.
The COP issue consists of Series A (Tax Exempt) and Series B (Taxable) Bonds. The Series A
were used for the public facilities portion of the financing and Series B were used to finance the
portion the City leases out. The series A (Tax Exempt) bonds bear an interest rate of 4.12% to
4.625% and the Series B (Taxable) bonds bear an interest rate of 5.8%. The certificates are
payable pursuant to a lease agreement.
As of June 30, 2011 the balance outstanding is:
2006 Certificates of Participation
$7,640,000
12
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Thus long after the recession, the recovery has been rather mixed for households and
businesses. After disappointing GDP figures in early 2011, the Federal Reserve is now
predicting a “slower pace of recovery” than previously forecast. The rate of growth was 0.4% in
Q1 and 1.3% in Q2. However, preliminary estimates for Q3 show an improved rate of growth at
2.5%. Household spending is still constrained by high unemployment, modest income growth,
lower housing wealth, and tight credit. Hope for a robust recovery has faltered; uncertainty has
taken hold of investors and consumers alike. In an effort to increase confidence and stabilize
market conditions, the Federal Open Market Committee (FOMC) indicated in August that they
will maintain the target range for the federal funds rate at 0 to 1/4 percent until at least mid2013, providing inflation remains low. The FOMC also stated it is prepared to provide additional
assistance, if needed, to support the economic recovery and keep employment and inflation at
levels consistent with its mandate, however, officials also recognized the need for fiscal policy to
address the lack of demand that is stalling the economy.
Repercussions from the State’s efforts to balance its budget the past few years have continued
to trickle down to the county and local government levels. The State’s balanced budget for
FY 2011-12 included drastic cuts set to be triggered if revenue collections do not meet
projections at certain milestones throughout the year. Should revenue receipts fall short of
projections, additional cuts to public schools, universities, libraries, child care, and assistance
for the elderly and disabled will be initiated. The State again made attempts to reroute tax
dollars and change funding sources for various programs, continuing uncertainty in the
continuity of local dollars. Unemployment in Orange County has consistently been among the
lowest in the State, and is expected to continue its downward trend into 2012. Total personal
income is expected to edge up slightly in late 2011 with stronger growth expected in 2012.
Forecasts for Aliso Viejo are optimistic, as the City marks its tenth anniversary of incorporation.
The City continues to achieve the lowest unemployment rate among Orange County cities
according to monthly labor force data provided by the State. Although the City is mostly built
out, businesses continue to seek vacant spaces within the City, which bodes well for the future
economic condition of the City. Residential construction remains slow and steady as the
housing market has recently been glutted with an inventory of homes that sellers have been
holding due to the drop in equity during the downturn. Market activity is expected to be sluggish
until demand picks back up, which isn’t likely to happen until consumer confidence and
employment conditions improve.
Net General Fund operations for FY 2011-12 are estimated to result in a positive cash flow to
the fund balance in the amount of $368,925. Fund balance at the end of operations for FY
2011-12 is estimated at $23.8 million. In accordance with the City’s Reserve Policy, $15.1
million is assigned for reserves and $8.4 million is unassigned and therefore available for any
governmental purpose. Overall, revenues in FY 2011-12 are anticipated to moderately increase
from FY 2010-11 levels, based on conservative estimates to account for the still weakened
economy and slow pace of construction. The operating budget for FY 2011-12 is balanced and
closely in line with the adopted budget of FY 2010-11 and maintains current service levels.
The Capital Improvement Budget represents a balanced approach for meeting the community's
current and future needs, while continuing to address priority issues expressed by the
community and City Council. The Capital Improvement Program for 2011-12 totals $3.3 million
and accomplishes improvements to streets, trails, and park amenities as well as maintaining
critical ongoing maintenance. Staff continues to maximize the use of special revenues by
13
actively pursuing grants and other funding opportunities from County, State and Federal
sources to help fund these programs.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and
creditors with a general overview of the City’s finances and to show the City’s accountability for
the money it receives. If you have questions about this report or need additional financial
information, contact the City’s Financial Services Department, City of Aliso Viejo, 12 Journey,
Suite 100, Aliso Viejo, California 92656, or call (949) 425-2520.
14
CITY OF ALISO VIEJO
STATEMENT OF NET ASSETS
JUNE 30, 2011
Governmental
Activities
Assets:
Cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Due from other governments
Deferred charges
Restricted assets:
Cash with fiscal agent
Capital assets not being depreciated
Capital assets, net of depreciation
$ 33,686,053
222,675
34,637
102,443
1,599,041
211,634
4,024,242
68,524,776
29,612,165
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Accrued interest
Unearned revenue
Deposits payable
Due to other governments
Retentions payable
Noncurrent liabilities:
Due within one year
Due in more than one year
138,017,666
678,910
63,301
121,609
106,722
156,013
81,264
56,807
195,800
7,416,566
Total Liabilities
Net Assets:
Invested in capital assets,
net of related debt
Restricted for:
Community development projects
Public safety
Public works
Debt service
Unrestricted
8,876,992
90,618,780
630,408
69,670
13,836,779
515,980
23,469,057
Total Net Assets
See Notes to Financial Statements
$ 129,140,674
15
CITY OF ALISO VIEJO
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2011
Net (Expenses)
Revenues and
Changes in Net
Assets
Expenses
Functions/Programs
Primary Government:
Governmental Activities:
General government
Public safety
Community development
Community services
Public works
Interest on long-term debt
$ 2,670,620
6,516,727
1,231,346
1,625,617
6,367,126
386,473
Total Governmental Activities
Total Primary Government
Program Revenues
Operating
Capital
Charges for
Contributions
Contributions
Services
and Grants
and Grants
Governmental
Activities
$
$
243,245
346,217
930,746
439,998
-
18,797,909
1,960,206
$ 18,797,909
$ 1,960,206
$
100,389
1,735,837
129,520
1,497,444
3,463,190
$
3,463,190
General Revenues:
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Motor vehicle in lieu - unrestricted
Use of money and property
Other
Total General Revenues, Contributions,
Special Items and Transfers
$
-
(2,427,375)
(6,070,121)
1,435,237
(1,056,099)
(4,869,682)
(386,473)
-
(13,374,513)
-
(13,374,513)
5,986,652
622,710
4,213,850
1,490,642
270,180
170,154
64,340
12,818,528
(555,985)
Net Assets at Beginning of Year
$
129,508,586
Restatement of Net Assets
188,073
Net Assets at End of Year
$ 129,140,674
16
GENERAL FUND
The General Fund has been classified as a major fund and is used to account for revenues and
expenditures that are not required to be accounted for in another fund.
SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for specific revenues that are legally restricted to
expenditure for a particular purpose. The following funds have been classified as major funds. The
budget-actual comparison for these funds have been presented in the accompanying financial statements
as Required Supplementary Information:
Gas Tax
This fund is used to account for the City’s share of the motor vehicle gas tax imposed under the
provisions of the Street and Highway Code of the State of California under Sections 2105, 2106, 2107,
2107.5 which are legally restricted for the acquisition, construction, improvements and maintenance of
public streets.
Development Impact Fund
This fund is used to account for revenue received as a result of negotiated developer agreements for
affordable housing, traffic mitigation, community enhancement and open spaces.
Conference Center
This fund is used to account for the operations of the Aliso Viejo Conference Center. The Aliso Viejo
Conference Center is a City owned facility that serves as an ideal venue to accommodate an array of
functions, such as banquets, wedding celebrations, conferences and corporate events.
CAPITAL PROJECTS FUNDS
The Capital Project Funds are used to account for the financial resources used for the acquisition of
capital assets. The following capital projects funds have been classified as major funds:
Street Improvements
This fund is used to account for the City's street improvement projects.
CFD 2005-01
This fund is used to account for capital expenditures associated with the development and construction of
the public facilities at Glenwood at Aliso Viejo. The capital costs associated with Glenwood at Aliso Viejo
project includes the construction of buildings, pools, landscaping, a parking lot, and a public park.
Non-Major Governmental Funds
These funds constitute all other governmental funds that do not meet the major 10% and 5% test of
assets, liabilities, revenues, or expenditures for the governmental funds. These funds consist of other
Special Revenue, Capital Projects and Debt Service Funds for the City.
17
CITY OF ALISO VIEJO
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Special Revenue Funds
Assets:
Pooled cash and investments
Receivables:
Accounts
Accrued interest
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
Liabilities and Fund Balances:
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Unearned revenues
Deposits payable
Retentions payable
$
$
2,148,139
$
6,523,916
$
180,207
218,552
34,637
90,565
954,979
144,111
-
4,123
9,830
-
-
-
-
-
23,987,353
$
2,292,250
$
6,523,916
$
194,160
$
301,407
63,301
10,419
25,215
81,264
-
$
139,617
-
$
-
$
83,955
130,798
-
Fund
u d Balances:
a a ces
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Capital Projects
Debt service
Assigned to:
Contingencies
Self insurance/benefit obligations
Asset replacement
Emergencies & unanticipated traffic projects
Unassigned
Total Fund Balances
22,688,620
Conference
Center
$
Total Liabilities
Total Liabilities and Fund Balances
Development
Impact
Gas Tax
General
$
481,606
139,617
-
214,753
90,565
-
-
9,830
-
2,152,633
-
6,523,916
-
-
4,741,227
471,500
7,838,000
2,000,000
8,364,455
-
-
(30,423)
23,505,747
2,152,633
6,523,916
(20,593)
23,987,353
18
$
2,292,250
$
6,523,916
$
194,160
CITY OF ALISO VIEJO
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2011
Capital Projects Funds
Street
Improvements
Assets:
Receivables:
Accounts
Accrued interest
Prepaid costs
Restricted assets:
Total Assets
Liabilities:
Accounts payable
Accrued liabilities
Deferred revenues
Unearned revenues
Deposits payable
Retentions payable
$
-
$
1,978,338
$
33,686,053
-
-
2,048
499,951
222,675
34,637
102,443
1,599,041
-
3,508,262
515,980
4,024,242
166,833
$
3,508,262
$
2,996,317
$
39,669,091
$
112,387
54,446
$
-
$
41,544
106,722
2,361
$
678,910
63,301
10,419
106,722
156,013
81,264
56,807
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Capital Projects
Debt service
Assigned to:
Contingencies
Self insurance/benefit obligations
Asset replacement
Emergencies & unanticipated traffic projects
Unassigned
Total Fund Balances
$
Total
Governmental
Funds
$
Total Liabilities
166,833
2005-01 CFD
Other
Governmental
Funds
$
166,833
-
150,627
1,153,436
-
-
2,048
102,443
-
3,508,262
-
630,408
69,670
1,651,968
515,980
630,408
69,670
13,836,779
515,980
-
-
-
3,508,262
166,833
19
$
3,508,262
(24,384)
4,741,227
471,500
7,838,000
2,000,000
8,309,648
2,845,690
$
2,996,317
38,515,655
$
39,669,091
20
CITY OF ALISO VIEJO
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2011
Fund balances of governmental funds
$
38,515,655
Amounts reported for governmental activities in the statement of net assets are
different because:
Capital assets net of depreciation have not been included as financial resources
in governmental fund activity
Bond issuance cost is an expenditure in the governmental funds, but it is
a deferred charge in the statement of net assets
98,136,941
211,634
Long-term debt and compensated absences
that have not been included in the governmental fund activity:
Long-term liabilities
Compensated Absences
(7,518,161)
(94,205)
Accrued interest payable for the current portion of interest due on
Bonds has not been reported in the governmental funds
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Net assets of governmental activities
(121,609)
10,419
$ 129,140,674
21
CITY OF ALISO VIEJO
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
General
Revenues:
Taxes
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeitures
Developer fees
Rental income
Other
$
Total Revenues
Expenditures:
Current:
General government:
City council
City manager
Economic development
City clerk
City attorney
Finance
General government
Community Development:
Community services
Planning
Public works
Public safety
Capital outlay
Debt service:
Principal retirement
Total Expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Total Other Financing Sources
(Uses)
Net Change in Fund Balances
Fund Balances, Beginning of Year, as
previously reported
12,326,544
608,902
296,388
321,844
175,909
346,217
243,245
25,442
Fund Balances, End of Year
$
$
1,164,440
12,337
-
$
732,557
-
Conference
Center
$
334,016
76,696
52,824
-
14,344,491
1,176,777
732,557
463,536
125,051
589,756
33,261
210,219
336,721
434,196
540,194
-
-
-
692,099
1,189,808
1,085,821
6,390,193
-
-
-
693,760
913,383
-
-
-
-
-
-
-
11,627,319
913,383
-
693,760
2,717,172
263,394
732,557
(230,224)
3,642
(857,432)
70,241
(26,484)
(2,000)
208,724
-
(853,790)
43,757
(2,000)
208,724
1,863,382
307,151
730,557
21,642,365
1,774,360
5,793,359
907
-
71,122
-
-
21,642,365
1,845,482
5,793,359
907
Restatements
Fund Balances, Beginning of Year, as restated
Development
Impact
Gas Tax
23,505,747
22
$
2,152,633
$
6,523,916
(21,500)
$
(20,593)
CITY OF ALISO VIEJO
STATEMENT OF REVENUES,
GOVERNMENTAL FUNDS
Street
Improvements
Revenues:
Taxes
Intergovernmental
Developer fees
Rental income
Other
$
Total Revenues
Expenditures:
Current:
General government:
City council
City manager
City clerk
City attorney
Finance
General government
Community Development:
Community services
Planning
Public works
Public safety
Capital outlay
Debt service:
Total Expenditures
Transfers in
Transfers out
(Uses)
-
2005-01 CFD
$
2,118
-
Other
Governmental
Funds
$
1,951,841
100,227
14,916
-
Total
Governmental
Funds
$
12,326,544
608,902
3,412,669
756,087
205,280
346,217
809,253
296,069
25,442
-
2,118
2,066,984
18,786,463
-
-
16,443
125,051
589,756
33,261
210,219
336,721
434,196
556,637
-
-
1,105,534
3,275,965
-
239,758
44,928
102,572
423,716
1,625,617
1,189,808
5,320,097
6,492,765
1,529,250
-
-
140,000
375,840
140,000
375,840
1,105,534
3,275,965
1,343,257
18,959,218
(1,105,534)
(3,273,847)
723,727
1,105,534
-
16,638
-
1,088,513
(1,607,376)
1,105,534
16,638
(518,863)
(172,755)
2,493,292
(2,493,292)
-
-
(3,257,209)
Fund Balances, Beginning of Year, as
previously reported
-
6,765,471
2,640,826
38,617,288
Restatements
-
-
-
71,122
Fund Balances, Beginning of Year, as restated
-
6,765,471
2,640,826
38,688,410
$
-
23
$
3,508,262
204,864
$
2,845,690
(172,755)
$
38,515,655
CITY OF ALISO VIEJO
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
Net change in fund balances - total governmental funds
$
(172,755)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period
34,628
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets
135,093
Debt issuance costs are expenditures in governmental funds, but these costs
are capitalized on the statement of net assets
(8,432)
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period.
2,706
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds
(2,686)
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity.
Change in net assets of governmental activities
(544,539)
$
24
(555,985)
CITY OF ALISO VIEJO
BUDGETARY COMPARISON STATEMENT BY DEPARTMENT
GENERAL FUND
Budgetary Fund Balance, July 1
Resources (Inflows):
Taxes
Intergovernmental
Rental income
Other
Transfers in
Amounts Available for Appropriation
Charges to Appropriation (Outflow):
General government
City council
City manager
City clerk
City attorney
Finance
General government
Community services
Planning
Public works
Public safety
Transfers out
Total Charges to Appropriations
Budgetary Fund Balance, June 30
Budget Amounts
Original
Final
$ 21,642,365
$ 21,642,365
Actual
Amounts
$ 21,642,365
Variance with
Final Budget
Positive
(Negative)
$
136,544
214,902
161,888
54,269
61,209
31,217
(3,115)
14,342
3,642
674,898
11,596,000
394,000
142,500
277,825
179,000
315,000
246,360
15,050
34,808,100
12,190,000
394,000
134,500
267,575
114,700
315,000
246,360
11,100
35,315,600
12,326,544
608,902
296,388
321,844
175,909
346,217
243,245
25,442
3,642
35,990,498
127,910
592,805
100,000
246,700
422,000
448,495
655,530
128,770
601,970
90,690
225,460
422,000
446,575
640,410
125,051
589,756
33,261
210,219
336,721
434,196
540,194
698,380
1,104,655
1,181,305
6,471,050
945,415
12,994,245
724,890
1,118,710
1,134,685
6,457,030
962,415
12,953,605
692,099
1,189,808
1,085,821
6,390,193
857,432
12,484,751
$ 21,813,855
$ 22,361,995
$ 23,505,747
25
3,719
12,214
57,429
15,241
85,279
12,379
100,216
32,791
(71,098)
48,864
66,837
104,983
468,854
$ 1,143,752
CITY OF ALISO VIEJO
BUDGETARY COMPARISON STATEMENT
GAS TAX
Budgetary Fund Balance, July 1, as restated
Intergovernmental
Transfers in
Public works
Transfers out
See Notes to Finanical Statements
Budget Amounts
Original
Final
$ 1,845,482
$ 1,845,482
Actual
Amounts
$ 1,845,482
Variance with
Final Budget
Positive
(Negative)
$
46,440
(7,663)
70,241
109,018
1,168,000
13,000
3,026,482
1,118,000
20,000
2,983,482
1,164,440
12,337
70,241
3,092,500
1,015,610
41,900
1,057,510
1,000,610
30,000
1,030,610
913,383
26,484
939,867
$ 1,968,972
$ 1,952,872
$ 2,152,633
26
87,227
3,516
90,743
$
199,761
CITY OF ALISO VIEJO
DEVELOPMENT IMPACT
Developer participation
Transfers out
Budget Amounts
Original
Final
$ 5,793,359
$ 5,793,359
Actual
Amounts
$ 5,793,359
Variance with
Final Budget
Positive
(Negative)
$
-
1,773,800
7,567,159
1,931,430
7,724,789
732,557
6,525,916
(1,198,873)
(1,198,873)
-
-
2,000
2,000
(2,000)
(2,000)
$ 7,567,159
$ 7,724,789
$ 6,523,916
$ (1,200,873)
27
CITY OF ALISO VIEJO
CONFERENCE CENTER
Contributions
Developer participation
Transfers in
Charges to Appropriation (Outflow)
Community services
Budget Amounts
Original
Final
$
907
$
907
Actual
Amounts
$
907
Variance with
Final Budget
Positive
(Negative)
$
-
425,920
84,315
30,000
245,440
786,582
425,920
84,315
30,000
245,440
786,582
334,016
76,696
52,824
208,724
673,167
(91,904)
(7,619)
22,824
(36,716)
(113,415)
785,675
785,675
785,675
785,675
693,760
693,760
91,915
91,915
$
907
28
$
907
$
(20,593)
$
(21,500)
CITY OF ALISO VIEJO
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2011
Agency
Funds
Assets:
Receivables:
Accounts
Restricted assets:
$
50,565
25,654
4,564,936
Total Assets
Liabilities:
Accounts payable
Deposits payable
Due to external parties/other agencies
Total Liabilities
1,172,379
29
$
5,813,534
$
44,154
1,180,384
4,588,996
$
5,813,534
30
CITY OF ALISO VIEJO
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2011
I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Note 1:
Summary of Significant Accounting Policies
The accounting policies of the City of Aliso Viejo conform to generally accepted accounting
principles as applicable to governments. The Governmental Accounting Standards Board
(GASB) is the accepted standard-setting body for establishing governmental accounting and
financial reporting principles.
a. Reporting Entity
The City of Aliso Viejo (the City) was incorporated July 1, 2001 under the general laws of
the State of California. The City operates under the Council-Manager form of
government.
The City provides the following services as authorized by its general laws: public safety,
public works, community development and general administrative services.
Generally accepted accounting principles require that these financial statements present
the City and its component units, entities for which the City is considered to be financially
accountable. As of the end of the reporting period the City had no component units as
defined by the GASB.
Blended Component Unit
Aliso Viejo Public Facilities Corporation
The Aliso Viejo Public Facilities Corporation (Corporation) was created on July 19, 2006
for the purpose of providing for the financing of the acquisition and improvement of a
building to be used as City Hall through the issuance of Certificates of Participation by the
Corporation and the lease-back of the building from the Corporation to the City. Members
of the City Council and management of the City act as the Corporation's governing board
and exerts significant influence over its operations. The funds of the Corporation have
been included in the governmental activities of the financial statements. Separate
financial statements are not prepared for this blended component unit.
b. Measurement Focus, Basis of Accounting and Basis of Presentation
The basic financial statements of the City are composed of the following:

Government-wide financial statements

Fund financial statements

Notes to the basic financial statements
Financial reporting is based upon all GASB pronouncements, as well as the FASB
Statements and interpretations, APB Opinions, and Accounting Research Bulletins that
were issued on or before November 30, 1989 that do not conflict with or contradict GASB
pronouncements.
31
CITY OF ALISO VIEJO
NOTES TO FINANCIAL STATEMENTS (Continued)
JUNE 30, 2011
Note 1:
Summary of Significant Accounting Policies (Continued)
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 a single column for the governmental activities of the
primary government. The City of Aliso Viejo has no business-type activities. 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 indirect 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.
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.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide
financial statements, rather than reported as expenditure. Proceeds of long-term debt are
recorded as a liability in the government-wide financial statements, rather than as an
other 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.
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 balances,
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, and fiduciary
funds are presented after the government-wide financial statements. These statements
display information about major funds individually and non-major funds in the aggregate
for governmental funds. Fiduciary statements include financial information for fiduciary
funds. Fiduciary funds of the City primarily represent assets held by the City in a custodial
capacity for other individuals or organizations.
32
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 1:
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.
Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle license fee,
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 where cash is
received by the government.
Revenue recognition is subject to the measurable and availability 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 non-exchange 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
non-exchange transactions are recognized as revenues when all applicable eligibility
requirements have been met. Revenues, expenses, gains, losses, assets, and liabilities
resulting from non-exchange transactions are recognized in accordance with the
requirements of GASB Statement No. 33 which requires that local governments defer
grant revenue that is not received within 60 days after the fiscal year ends to meet the
"available" criteria of revenue recognition.
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. 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 revenue represented by non-current receivables
are deferred until they become current receivables. Non-current portions of other
long-term receivables are offset by fund balance reserve accounts.
33
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 1:
Because of their spending measurement focus, expenditure recognition for governmental
fund types excludes amounts represented by non-current 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 another financing source rather than as a fund liability. Amounts
paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are
considered to be paid first from restricted resources, and then from unrestricted
resources.
c. Fund Classifications
The City reports the following major governmental funds:
General Fund: The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for in another
fund.
Gas Tax Special Revenue Fund: This fund is used to account for the City’s share of the
motor vehicle gas tax imposed under the provisions of the Street and Highway Code of
the State of California under Sections 2105, 2106, 2107, 2107.5 which are legally
restricted for the acquisition , construction, improvements and maintenance of public
streets.
Development Impact Special Revenue Fund: This fund is used to account for revenue
received as a result of negotiated developer agreements for affordable housing, traffic
mitigation, community enhancement and open spaces.
Conference Center: This fund is used to account for the operations of the Aliso Viejo
Conference Center. The Aliso Viejo Conference Center is a City owned facility that
serves as an ideal venue to accommodate an array of functions, such as banquets,
wedding celebrations, conferences and corporate events.
Street Improvements Capital Projects Fund: This fund is used to account for the City's
street improvement projects.
CFD 2005-01 Capital Projects Fund: This fund is used to account for capital
expenditures associated with the development and construction of the public facilities at
Glenwood at Aliso Viejo. The capital costs associated with Glenwood at Aliso Viejo
project includes the construction of buildings, pools, landscaping, a parking lot, and a
public park.
Additionally, the government reports the following fund type:
Agency Funds: These funds are used to account for special deposits for which the City
acts as an agent for all special deposit activity.
34
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 1:
d. Cash and Investments
Investments are reported in the accompanying statement of net assets at fair value.
Changes in fair value that occur during a fiscal year are recognized as investment income
reported for that fiscal year. Investment income includes interest earnings and changes in
fair value. The City pools cash and investments of all funds. Each fund's share in this
pool is displayed 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. Prepaids
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements.
The fund balances in the governmental fund statements have been reserved for amounts
equal to the prepaid items in the fund-level statements, since these amounts are not
available for appropriation,
f.
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 $2,000 are capitalized if they
have an expected useful life of three years or more.
Capital assets include public domain (infrastructure) general capital assets consisting of
certain improvements including roads, streets, sidewalks, medians, and storm drains.
The City has elected to include infrastructure capital assets in their entirety (e.g., prior to
1980) in compliance with requirements of GASB Statement No. 34.
Capital assets used in operations are depreciated over their estimated useful lives,
except for streets, of which the City reports based on using the modified approach. The
City uses the straight-line method in the government-wide financial statements for
depreciating storm drains, park equipment, buildings, equipment and furniture and
leasehold improvements, Depreciation is charged as an expense against operations and
accumulated depreciation is reported on the respective statement of net assets. The
range of lives used for depreciation purposes for each capital asset class are as follows:
35
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 1:
Items
Buildings
Improvements
Equipment and Furniture
Useful Life
100 years
3 years
5 years
Infrastructure:
Sidewalks
Curb and gutters
Medians
Traffic signals
Street signs
Storm drains
Park equipment
20-50 years
20-50 years
20-50 years
15 years
15 years
20-50 years
10-50 years
The City of Aliso Viejo met all the criteria required by GASB Statement No. 34 to report
their streets and roads network using the modified approach, which allows those
infrastructure assets to be non-depreciable. Hence, all expenditures made for the streets
and roads asset network (except for additions and improvements) are expensed in the
period incurred. Additions or improvements to the streets and roads network assets that
increase the capacity or efficiency of those assets (rather than preserve the useful life)
are capitalized. The City elected to set their minimum acceptable level of condition at
80 for all streets and roads network systems based on their pavement management
system scale of 1 to 100. The City plans to test/assess the condition level at least every
three years. See the accompanying Required Supplementary Information section for
additional information.
g. Compensated Absences
In accordance with GASB Statement No. 16, an employee benefits payable liability is
recorded for unused vacation and similar compensatory leave balances. The employee's
entitlements to these balances are attributable to services already rendered and it is
probable that virtually all of these balances will be liquidated by either paid time off or
payments upon termination or retirement.
h. Property Taxes
Under California law, property taxes are assessed and collected by the counties up to
1% of assessed value, plus other increases approved by the voters. The property taxes
go into a pool, and are then allocated to the cities based on complex formulas.
Accordingly, the City recognizes as revenue only those taxes which are received within
60 days after year end.
The property tax calendar is as follows:
Lien Date:
Levy Date:
Due Date
Delinquent Date:
January 1
July 1
First Installment- November 1
Second Installment- February 1
First Installment- December 10
Second Installment- April 10
36
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 1:
i.
Use of Estimates
The preparation of basic financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenditures during the reporting period. Actual
results could differ from those estimates.
j.
Fund Equity
The City Manager and/or the Financial Services Director authorize assigned amounts for
specific purposes pursuant to the policy-making powers granted to him through a
resolution. When an expenditure is incurred for purposes for which both restricted and
unrestricted fund balance is available, the City considers restricted amounts to be used
first, then unrestricted. When an expenditure is incurred for purposes for which amounts
in any of the unrestricted fund balance classifications could be used, they are considered
to be spent in the order as follows: committed, assigned and then unassigned.
k. Reconciliation of Government-Wide and Fund Financial Statements
1. Explanation of certain differences between the governmental fund balance sheet and
the government-wide statement of net assets.
The governmental fund balance sheet includes reconciliation between fund
balance - total governmental funds and net assets - governmental activities as
reported in the government-wide statement of net assets. One element of that
reconciliation explains that "long-term liabilities, including bonds payable, are not due
and payable in the current period and, therefore, are not reported in the funds." The
details of this $(7,518,161) difference are:
Bonds payable
Deferred discount on bonds (to be amortized over the
life of the debt)
Net adjustment to reduce fund balance - total
governmental funds to arrive at net assets governmental activities
$
(7,640,000)
121,839
$
(7,518,161)
2. Explanation of certain differences between the governmental fund statement of
revenues, expenditures and changes in fund balances and the government-wide
statement of activities.
The governmental fund statement of revenues, expenditures and changes in fund
balances includes reconciliation between net changes in fund balances - total
governmental funds and changes in net assets of governmental activities as reported
in the government-wide statement of activities. One element of that reconciliation
explains that "Governmental funds report capital outlays as expenditures. However,
in the Statement of Activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense." The details of this
$34,628 difference is:
37
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 1:
Capital outlay
Depreciation expense
Net adjustment to increase net changes in fund balances total governmental funds to arrive at changes in net assets
of governmental activities
$
896,044
(861,416)
$
34,628
Another element of that reconciliation states that “the issuance of long-term debt
(e.g., bonds, leases) provides current financial resources to governmental funds,
while the repayment of long-term debt principal consumes the current financial
resources of governmental funds.” The details of this $135,093 are:
Bond repayments
Amortization of bond discount
Net adjustment to increase net changes in fund balances total governmental funds to arrive at changes in net assets
of governmental activities
$
140,000
(4,907)
$
135,093
II. STEWARDSHIP
Note 2:
Stewardship, Compliance and Accountability
a. Budgetary Accounting
The City Manager shall prepare and submit the proposed annual budget to the City
Council for its approval for all governmental funds. The agenda for the budget workshops
and budget meetings are noticed in accordance with the Brown Act. After reviewing the
same and making such revisions as it may deem advisable and public input the budget is
then adopted annually by the Council at a regularly held meeting. The budget is adopted
prior to the beginning of the fiscal year and serves as the foundation for the City's
financial plan.
The level of budgetary control (the level at which expenditures cannot legally exceed the
appropriated amount) is established at the fund level. Transfers of appropriations
between department budgets can be made with the City Manager/Financial Services
Director approval. City Council's approval is required for all budget amendments that
result in a change to the adopted budget.
Budgets are prepared in accordance with generally accepted accounting principles using
the modified accrual basis of accounting.
Appropriations lapse at the end of the fiscal year unless they are re-appropriated through
the formal budget process. Open encumbrances are recorded as reservations of fund
balance since the commitments will be paid by subsequent year's budget appropriations.
Encumbrances do not constitute expenditures or liabilities of the City.
38
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 2:
Stewardship, Compliance and Accountability (Continued)
Budgeted amounts are as originally adopted, or as amended in accordance with
prescribed procedures throughout the fiscal year.
b. At June 30, 2011, the following funds had deficit fund balances:
Major Special Revenue Funds:
Conference Center
$
(22,593)
Nonmajor Special Revenue Funds:
Aquatics Center
(22,336)
c. Excess of expenditures over appropriations are as follows:
Expenditures for the year ended June 30, 2011, exceeded the appropriations of the
General Fund as follows:
General Fund:
Planning
Budget
Actual
$ 1,118,710
$ 1,189,808
Variance
$
(71,098)
III. DETAILED NOTES ON ALL FUNDS
Note 3:
Cash and Investments
Cash and investments as of June 30, 2011, are classified in the accompanying financial
statements as follows:
Statement of Net Assets:
Cash and investments held by fiscal agent
Statement of Fiduciary Assets and Liabilities:
Cash and investments held by fiscal agent
Total cash and investments
Cash and investments as of June 30, 2011 consist of the following:
Cash on hand
Deposits with financial institutions
Investments
Total cash and investments
$ 33,686,053
4,024,242
1,172,379
4,564,936
$ 43,447,610
$
1,500
4,731,758
38,714,352
$ 43,447,610
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
39
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 3:
Cash and Investments (Continued)
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 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.
Investment Types Authorized by
State Law
Authorized by
Investment
Policy
Maximum
Maturity*
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer*
No
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
No
Yes
No
No
Yes
No
5 years
5 years
5 years
180 days
270 days
5 years
30 days
30 Days
5 years
None
None
5 years
None
None
None
None
75%
60%
20%
20%
75%
10%
10% of base value
10%
20%
10%
20%
None
None
None
None
None
$7,000,000
$3,000,000
10%
$15,000,000
$2,000,000
$2,000,000
$1,000,000
10%
$1,000,000
None
None
$30,000,000
None
Local Agency Bonds
U.S. Treasury Obligations
U.S. Agency Securities
Banker's Acceptances
Commercial Paper
Negotiable Certificates of Deposit
Repurchase Agreements
Reverse Repurchase Agreements
Medium-Term Notes
Mutual Funds
Money Market Mutual Funds
Mortgage Pass- Through Securities
County Pooled Investment Fund
Local Agency Investment Fund
JPA Pools (other investment pools)
* Based on state law requirements or investment policy requirements, whichever is more
restrictive.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt
agreements, rather than the general provisions of the California Government Code or the
City's investment policy. The table below identifies the investment types that are authorized
for investments held by bond trustee. The table also identifies certain provisions of these debt
agreements that address interest rate risk, credit risk, and concentration of credit risk.
Investment Types Authorized
by State Law
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment In
One Issuer
U.S. Treasury Obligations
U.S. Agency Securities
Bankers' Acceptances
Commercial Paper
Money Market Funds
Investment Agreements
Defeasance Obligations
Municipal Obligations
Local Agency Investment Fund
5 years
5 years
180 days
270 days
N/A
None
None
None
None
75%
60%
20%
20%
10%
None
None
None
None
None
35%
$3,000,000
None
None
None
None
None
$30,000,000
40
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 3:
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value is to changes in market interest rates.
Information about the sensitivity of the fair values of the City's investments to market interest
rate fluctuations is provided by the following table that shows the distribution of the City's
investments by maturity:
Remaining Maturing
(in Months)
Investment Type
12 Months or Less
Total
State investment pool
Held by fiscal agent:
Money market mutual funds
Total
$ 30,125,174
$
30,125,174
8,589,178
$ 38,714,352
$
8,589,178
38,714,352
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:
Rating as of Year End
Investment type
State investment pool
Total
Minimum
Legal
Rating
$ 30,125,174
N/A
8,589,178
AAA
AAA
$
Not Rated
-
$ 30,125,174
8,589,178
-
$ 8,589,178
$ 30,125,174
Held by fiscal agent:
Money market funds
Total
$ 38,714,352
On Aug. 5, 2011, Standard & Poor's Ratings Services lowered its long-term sovereign credit
rating on the United States of America to AA+ from AAA. As a result, on Aug. 8, 2011,
Standard & Poor's Ratings Services lowered its issuer credit ratings and related issue ratings
on various Federal Home Loan Bank, Federal Farm Credit Bank, Fannie Mae and Freddie
Mac to AA+ from AAA. The City invests in LAIF which invests in various underlying
securities, including the federal agency securities listed above. While LAIF is not rated, the
federal agency securities are, and these have been affected by this rating change.
41
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 3:
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. As of
June 30, 2011, the City did not have any investments in any one issuer (other than U.S.
Treasury securities, mutual funds, and external investment pools) that represented 5% or
more of its total investment portfolio.
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.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the
State of California. The fair value of the City's investment in this pool is reported in the
accompanying financial statements at an amount 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. Currently, LAIF does not
have an investment rating.
Note 4:
Interfund Transfers
lnterfund transfers at June 30, 2011 consisted of the following:
Transfers Out
Transfers In
General Fund
$
Gas Tax
Conference Center
Street Improvements
2005-01 CFD
Non-Major Governmental Funds
Total
$
General
Fund
72
857,360
857,432
42
Gas Tax
$
26,484
$ 26,484
Development
Impact
Non-major
Governmental
Funds
$
-
$
$
2,000
2,000
$
3,642
70,241
208,652
1,079,050
16,638
229,153
1,607,376
Total
$
3,642
70,241
208,724
1,105,534
16,638
1,088,513
$ 2,493,292
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 4:
Interfund Transfers (Continued)
lnterfund transfers from the General Fund and various Special Revenue Funds were made to
the Street Improvements Capital Projects Fund and Capital Improvement Fund (a nonmajor
governmental fund) to provide funding for various capital projects.
Note 5:
Capital Assets
Capital asset activity for the year ended June 30, 2011, was as follows:
Balance at
June 30, 2010
Capital assets not being depreciated:
Land
Infrastructure - streets
Construction in progress**
Total capital assets not being
depreciated
Capital assets being depreciated:
Buildings
Improvements
Equipment
Furniture
Infrastructure — other*
Total capital assets being
depreciated
Less accumulated depreciation for:
Buildings
Improvements
Equipment
Furniture
Infrastructure - other
Total accumulated depreciation
Total capital assets being
depreciated, net
Capital assets, net
$ 14,315,978
53,871,430
217,205
Adjustments
$
Adjusted
Balance at
June 30, 2010
-
$ 14,315,978
53,871,430
217,205
68,404,613
-
68,404,613
18,751,786
400,839
235,745
237,621
24,699,398
116,951
-
44,325,389
116,951
Additions
Deletions
$
$
120,163
Balance at
June 30, 2011
-
$ 14,315,978
53,871,430
337,368
120,163
-
68,524,776
18,868,737
400,839
235,745
237,621
24,699,398
354,400
6,138
415,343
-
19,223,137
400,839
241,883
237,621
25,114,741
44,442,340
775,881
-
45,218,221
(732,420)
(227,116)
(95,396)
(101,289)
(13,588,419)
-
(732,420)
(227,116)
(95,396)
(101,289)
(13,588,419)
(325,726)
(34,069)
(47,512)
(40,915)
(413,194)
-
(1,058,146)
(261,185)
(142,908)
(142,204)
(14,001,613)
(14,744,640)
-
(14,744,640)
(861,416)
-
(15,606,056)
(85,535)
-
29,612,165
-
$ 98,136,941
29,580,749
116,951
29,697,700
$ 97,985,362
$ 116,951
$ 98,102,313
$ 34,628
$
* Other infrastructure consisted of sidewalks, curbs and gutters, medians,
traffic signals, street signs, storm drains, and park equipment.
** Construction in progress consists primarily of additions to infrastructure.
43
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 5:
Capital Assets (Continued)
Depreciation expense was charged to functions as follows:
General government
Public safety
Public works
$
$
Note 6:
416,214
8,277
23,102
413,823
861,416
Non- Current Liabilities
Changes in non-current liabilities for the fiscal year ended June 30, 2011 were as follows:
Compensated
Absences
Certificates of
Participation
Total
Balance at
June 30,
2010
Additions
Deletions
$
91,519
$ 33,531
$ 30,845
7,780,000
-
140,000
7,640,000
150,000
7,490,000
$ 7,871,519
$ 33,531
$ 170,845
7,734,205
$ 195,800
$ 7,538,405
Original issue discount
Balance at
June 30,
2011
$
94,205
Amount
Due Within
One Year
Amount Due
Beyond One
Year
$
$
45,800
48,405
(121,839)
Total
$ 7,612,366
Compensated Absences
The City's policies relating to employee leave benefits are described in Note 1g. This liability
will be paid in future years from future resources primarily from the General Fund. As of
June 30, 2011, the outstanding balance was $94,205.
Certificates of Participation
On August 1, 2006, the City issued $6,245,000 of tax-exempt Series A Certificates of
Participation and $1,910,000 of taxable Series B Certificates of Participation to provide
financing for the acquisition and tenant improvements of the City Hall building. The principal
is due annually in amounts ranging from $55,000 to $490,000 on March 1 of each year
commencing in 2008 through the year 2037. Interest is payable semi annually on March 1
and September 1 of each year commencing on March 1, 2007, at rates ranging from 4.125%
to 5.800%. The reserve requirement at June 30, 2011 was $496,183. The City's balance in its
reserve fund was $515,950. The outstanding principal balance at June 30, 2011, was
$7,640,000.
44
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 6:
Non- Current Liabilities (Continued)
Debt Service Requirements to Maturity
The annual debt service requirements to amortize outstanding long-term debt of the City as
of June 30, 2011, are as follows:
Year Ending June 30
2012
Note 7:
Principal
$
150,000
Interest
$
364,826
Total
$
514,826
2013
155,000
356,126
511,126
2014
165,000
347,136
512,136
2015
175,000
337,566
512,566
2016
185,000
327,426
512,426
2017-2021
1,090,000
1,469,069
2,559,069
2022-2026
1,375,000
1,192,008
2,567,008
2027-2031
1,705,000
853,150
2,558,150
2032-2036
2,150,000
420,875
2,570,875
2037-2041
Total
490,000
22,663
512,663
$ 7,640,000
$ 5,690,845
$ 13,330,845
Debt Without Government Commitment Community Facilities District No. 2005-01
In November, 2007, the City issued $34,070,000 in Special Tax Bonds for Community
Facilities District No. 2005-01 (Glenwood at Aliso Viejo). Interest payments commenced on
March 1, 2008 and are paid semiannually thereafter on September 1 and March 1 of each
year. Principal payments commence on September 1, 2011 and are paid annually in amounts
ranging from $40,000 to $720,000 until September 1, 2022. The bonds were issued to
finance the acquisition and improvement of various public facilities within Community
Facilities District No. 2005-01 (Glenwood at Aliso Viejo). The outstanding principal balance as
of June 30, 2011 was $34,070,000.
Note 8:
Pension Plan
Plan Description
The City of Aliso Viejo contributes to the California Public Employees Retirement System
(PERS), a cost-sharing multiple-employer public employee defined benefit pension plan.
PERS provides retirement, disability benefits, 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. PERS issues a publicly available financial report
that includes financial statements and required supplementary information for the cost
sharing plans that are administered by PERS. Copies of PERS' annual financial report may
be obtained by writing to 400 "P" Street, Sacramento, California 95814.
45
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 8:
Pension Plan (Continued)
Contributions
Participants are required to contribute 7% of their annual covered salary. The City makes the
contributions required of City employees on their behalf and for their account. Benefit
provisions and all other requirements are established by state statute.
For each of the fiscal years shown below, the City has contributed at the actuarially
determined rate provided by PERS' actuaries. 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, 2010 to June 30, 2011, has been determined by an
actuarial valuation of the plan as of June 30, 2007. The City's covered payroll for PERS was
$1,264,613 for the year ended June 30, 2011, while the City's total payroll for all employees
was $1,417,844 during the same period. In order to calculate the dollar value of the ARC for
inclusion in financial statements prepared as of June 30, 2011, the contribution rate is
multiplied by the payroll of covered employees that were paid from the period July 1, 2010 to
June 30, 2011.
Fiscal Year
Note 9:
Employer
Contribution
Rate
6/30/11
8.475%
6/30/10
6/30/09
Three-Year Trend Information
Annual
Pension Cost Percentage of
Net
(Employer
APC
Pension
Contribution) Contributed Obligation
100%
-0-
8.721%
203,054
199,210
100%
-0-
9.374%
191,978
100%
-0-
$
Risk Management
The City is a member of the California Joint Power Insurance Authority (Authority). The
Authority is composed of 122 California public entities and is organized under a joint powers
agreement pursuant to California Government Code §6500 et seq. The purpose of the
Authority is to arrange and administer programs for the pooling of self-insured losses, to
purchase excess insurance or reinsurance, and to arrange for group purchased insurance for
property and other coverages. The Authority's pool began covering claims of its members in
1978. Each member government has an elected official as its representative on the Board of
Directors. The Board operates through a 9-member Executive Committee.
General Liability - Each member government pays a primary deposit to cover estimated
losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims year. Claims
are pooled separately between police and non-police. Costs are allocated to members by the
following methods within each of the four layers of coverage: (1) the first $30,000 of each
occurrence is charged directly to the member's primary deposit; (2) costs from $30,000 to
$750,000 and the loss development reserves associated with losses up to $750,000 are
46
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 9:
Risk Management (Continued)
pooled
based
on
the
member's
share
of
losses
under
$30,000;
(3) losses from $750,000 to $5,000,000 and the associated loss development reserves are
pooled based on payroll; (4a) costs of covered claims from $5,000,000 to $10,000,000 are
paid under reinsurance policies and are subject to a $2,500,000 annual aggregate deductible;
(4b) costs of covered claims from $10,000,000 to $50,000,000 are covered through excess
insurance policies; (4c) costs of covered claims for subsidence losses are paid by excess
insurance with a sub-limit of $25,000,000 per occurrence per member. This $25,000,000
subsidence sub-limit is composed of $10,000,000 in reinsurance and $15,000,0000 in excess
insurance. The excess insurance layer has a $15,000,000 annual aggregate. The cost
associated with 4a, 4b, and 4c are estimated using actuarial models and pre-funded as part
of the primary and retrospective deposits.
The overall policy limit for each member including all layers of coverage is $50,000,000
Workers' Compensation- The City also participates in the workers' compensation pool
administered by the Authority. Each member pays a primary deposit to cover estimated
losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are
valued. A retrospective deposit computation is then made for each open claims year. Claims
are pooled separately between public safety and non-public safety. Costs are allocated to
members by the following methods within each of the four layers of coverage: (1) the first
$50,000 of each loss is charged directly to the member's primary deposit; (2) losses from
$50,000 to $100,000 and the loss development reserve associated with losses up to
$100,000 are pooled based on the member's share of losses under $50,000; (3) losses from
$100,000 to $2,000,000 and the loss development reserves associated with those losses are
pooled based on payroll; (4) losses from $2,000,000 up to statutory limits are paid under an
excess insurance policy. Protection is provided per statutory liability under California Workers'
Compensation law.
Employer's Liability losses are pooled among members to $2,000,000, coverage from
$2,000,000 to $4,000,000 is purchased as part of an excess insurance policy, and losses
from $4,000,000 to $10,000,000 are pooled among members.
Environmental Insurance — The City participates in the pollution legal liability and
remediation legal liability insurance which is available through the Authority. The policy
covers sudden and gradual pollution of scheduled property, streets, and storm drains owned
by City of Aliso Viejo. Coverage is on a claims-made basis. There is a $50,000 deductible.
The Authority has a limit of $50,000,000 for the 3-year period from July 1, 2008 through
July 1, 2011. Each member of the Authority has a $10,000,000 sub-limit during the 3-year
term of the policy.
Property Insurance - The City participates in the all-risk property protection program of the
Authority. This insurance protection is underwritten by several insurance companies. City
property is currently insured according to a schedule of covered property submitted by the
City to the Authority. The City property currently has all-risk property insurance protection in
the amount of $19,277,696. There is a $5,000 deductible per occurrence except for
non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage
are paid annually and are not subject to retroactive adjustments.
47
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 9:
Risk Management (Continued)
Crime Insurance — The City purchases crime insurance coverage in the amount of
$1,000,000 with a $2,500 deductible. The fidelity coverage is provided through the Authority.
Premiums are paid annually and are not subject to retroactive adjustments. During the past
three fiscal (claims) years, none of the above programs of protection have had settlements or
judgments that exceeded pooled or insured coverage. There have been no significant
reductions in pooled or insured liability coverage from coverage in the prior year.
Note 10:
Joint Venture
Orange County Fire Authority
In July 2001, the City of Aliso Viejo entered into a joint powers agreement with the cities of
Buena Park, Cypress, Dana Point, Irvine, Laguna Hills, Laguna Niguel, Lake Forest, La
Palma, Los Alamitos, Mission Viejo, Placentia, San Clemente, San Juan Capistrano, Seal
Beach, Stanton, Tustin, Villa Park, Westminster and Yorba Linda and the County of Orange
to create the Orange County Fire Authority (Authority). Since the creation of the Authority, the
Cities of Laguna Woods and Rancho Santa Margarita joined the Authority as members
eligible for fire protection services. The purpose of the Authority is to provide for mutual fire
protection, prevention and suppression services and related and incidental services including,
but not limited to, emergency medical and transport services, as well as providing facilities
and personnel for such services. The effective date of formation was March 1, 1995. The
Authority's governing board consists of one representative from each City and two from the
County. The operations of the Authority are funded with fire fees collected by the County
through the property tax roll for the unincorporated area and on behalf of all member cities
except for the Cities of Stanton, Tustin, San Clemente, Buena Park, Placentia and Seal
Beach. The County pays all structural fire fees it collects to the Authority. The Cities of
Stanton, Tustin, San Clemente, Buena Park, Placentia and Seal Beach are considered "cash
contract cities" and accordingly, make cash contributions based on the Authority's annual
budget. The City of Aliso Viejo does not have an equity interest in the assets of the Orange
County Fire Authority. Complete financial statements may be obtained from the Orange
County Fire Authority, 180 S. Water Street, Orange, California 92866.
Note 11:
Contingent Liabilities
Various claims and suits have been filed against the City in the normal course of business.
Although the outcome of these matters is not presently determinable in the opinion of legal
counsel, the resolutions of these matters will not have a material adverse effect on the
financial condition of the City.
48
CITY OF ALISO VIEJO
JUNE 30, 2011
Note 12:
Fund Balances and Net Assets
Fund balance restatements
Gas Tax:
To adjust revenues from the prior year to agree to the Street Report
$
71,122
Net asset restatements:
Government-wide Net Assets:
Fund balance restatements noted above
$
To adjust beginning balance of capital assets to add an asset that was
not capitalized in prior years.
Total Net Asset restatements
116,951
$
49
71,122
188,073
50
CITY OF ALISO VIEJO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
Note 1:
Capital Assets – Modified Approach for Infrastructure
The City elected to use the modified approach in reporting their street pavement
infrastructure network.
Under the modified approach, infrastructure assets that are part of a network or subsystem of
a network are not required to be depreciated as long as two requirements are met. First, the
government manages the eligible infrastructure assets using an asset management system
that has the following characteristics:
x
Has an up-to-date inventory of eligible infrastructure assets
x
Performs condition assessments of the eligible infrastructure assets and summarize
the results using a measurement scale
x
Estimates each year the annual amount to maintain and preserve the eligible
infrastructure assets at the condition level established and disclosed by the
government.
Second, the government documents that the eligible infrastructure assets are being
preserved approximately at (or above) a condition level established and disclosed by the
government. If eligible infrastructure assets meet all requirements and are not depreciated, all
expenditures made for those assets (except for additions and improvements) are expensed in
the period incurred. Additions and improvements to eligible infrastructure assets are
capitalized. Additions or improvements increase the capacity or efficiency of infrastructure
assets rather than preserve the useful life of the assets.
The condition of road pavement is measured using the Abbott Pavement Management
System. All city streets have asphalt surfaces. Six distress factors are assessed for all street
segments. Pavement condition is rated on a scale of 0 to 100 points. This rating scale is
called a deficiency rating. The scale is subdivided into ranges or categories. Pavement
condition is commonly defined by the following five categories.
1. Excellent (90+ Rating) — A street rated as excellent has the characteristics of a new
street. A street in this category has no surface defects that would affect ride quality or
cause excess tire noise.
2. Good (80 to 89 Rating) — A street rated as good has some surface defects that can
be seen when walking along the street. Some cracking and raveling will probably
exist. In fact, there could be large cracks in the street or many hairline cracks. There
may be some minor bumps that can be felt when driving the street at posted speeds.
3. Fair (70 to 79 Rating) — A street rated as fair has areas of surface defects that are
apparent to drivers and passengers as they use the street. There will probably be
significant cracking and raveling of the asphalt surface. If cracking does not exist, the
street will probably have many patches and utility cuts or perhaps some rutting and
deformation. There will be some ride roughness and some additional tire noise.
These streets will not cause increases in vehicle driving costs due to extra wear and
tear on vehicles.
51
CITY OF ALISO VIEJO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (Continued)
Note 1:
Capital Assets – Modified Approach for Infrastructure (Continued)
4. Poor (60 to 69 Rating) — A street rated as poor has surface defects generally
throughout its length that are readily apparent to anyone using the street. There will
be areas showing structural failure with closely spaced cracking and there may be
pieces of loose pavement. A street in this category will cause additional vehicle user
costs and excessive tire noise.
5. Critical (59 and below Rating) — A street rated critical will have major areas of
structural failure which may alter the speeds at which typical drivers drive on the
street. There will be missing pieces of pavement. Repair of a street in this category
will require reconstruction.
Annual street maintenance costs for the previous five fiscal years were as follows:
Year Ended
June 30,
2007
2008
2009
2010
2011
Actual
$ 1,136,477
2,161,076
2,995,083
2,330,519
1,961,706
Estimated
$ 2,116,728
2,441,772
3,460,430
3,638,655
2,312,202
Total
$ 10,584,861
$ 13,969,787
The City of Aliso Viejo City Council (the Council) accepted the findings of the Pavement
Management System performed in fiscal year 2002 (see results below) and adopted a
condition rating of 80 as the minimum acceptable Pavement Condition Index (PCI). The PMS
was updated using statistical methods in 2004. The approach incorporated a new field survey
of approximately 10% of all streets. The survey was then statistically extended to the entire
street system. A complete field survey was performed and accepted by the City Council in
fiscal year 2006, 2008 and 2010. See below for the three most recent condition assessments:
Conditions
+90
Excellent
80-89
Good
70-79
Fair
60-69
Poor
Below 59
Critical
2006
55.4%
40.8%
3.3%
0.5%
0.0%
Mileage
40.8
30.1
3.3
0.4
0.0
2008
55.4%
40.8%
3.3%
0.5%
0.0%
Mileage
40.8
30.1
2.4
0.4
0.0
2010
39.8%
37.7%
9.7%
5.8%
7.0%
Mileage
29.3
27.8
7.1
4.3
5.2
100.0%
74.6
100.0%
73.7
100.0%
73.7
The results of the most recent complete condition assessment (performed in fiscal year 2010)
reported an average condition rating of 83.6 which is 2.2 points higher than the 2008 average
of 81.4.
The estimated total funding needed for maintenance/rehabilitation to achieve the minimum
PCI standard was $2,100,000 as of June 30, 2010. This figure is based on the fiscal year
2010 condition survey. The condition survey will be updated during the fiscal year ended
June 30, 2012 for a two-year cycle.
52
NON-MAJOR GOVERNMENTAL FUNDS
NON-MAJOR SPECIAL REVENUE FUNDS
Traffic Congestion Relief
This fund is used to account for revenue from Assembly Bill 2928 and the corresponding expenditures for
street infrastructure.
Measure M
The Measure M Fund is used to account for the City’s share of the sales tax increase authorized by
Orange County’s Measure “M”. These monies are legally restricted for the acquisition, construction and
improvement of public streets.
Public Safety Grants
This fund is used to account for law enforcement grants received such as the California Law Enforcement
Equipment Program (CLEEP) and the Supplemental Law Enforcement State Fund (SLESF).
Air Quality Improvement
This fund is used to account for the City’s share of vehicle registration fees that the State of California has
allocated to address air quality concerns in Southern California. These monies are to be used in air
quality maintenance programs locally and/or regionally.
Integrated Waste Management
This fund is used to account for the receipt of the California Beverage and Recycling Grant.
Other Grants
This fund is used to account for federal, state, local and other grants received such as the Orange County
Prop. 10 and the Urban Runoff Grant.
Technology Grants
This fund is a result of negotiations between the City and a franchisee for a new franchise agreement.
These funds will be used for new technology purchases, provide City information on the Cable T.V.
Government Access Channel and provide programs and access to computers through technology
upgrades to the Family Resource Center.
Federal Grants
This fund is used to account for revenue received from federal grants.
Aquatics Center
This fund is used to account for the operations of the Aliso Viejo Aquatic Center. The Aliso Viejo Aquatic
Center is a City owned facility that will provide residents with a resort-style swimming complex that
includes a lap pool, whirlpool, tot’s wading pool, snack bar and patio.
53
NON-MAJOR CAPITAL PROJECTS FUNDS
Capital Improvements
This fund is used to account for the City’s Capital Improvements Projects that do not fall in the Street
Improvement or Storm Water categories.
Storm Water
This fund is used to account for the City’s Storm Water related improvement projects.
2006 COP
This fund is used to account for capital projects funded by the 2006 Certificates of Participation bonds.
NON-MAJOR DEBT SERVICE FUNDS
Debt Service
This fund accounts for the receipt of revenues and payment of debt service related to the 2006 Certificate
of Participation bonds.
54
55
CITY OF ALISO VIEJO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2011
Traffic
Congestion
Relief
Assets:
Prepaid costs
Restricted assets:
Total Assets
Liabilities:
Accounts payable
Unearned revenues
Retentions payable
$
1,328
-
$
-
658,360
390,297
Public Safety
Grants
Air Quality
Improvement
$
$
-
58,354
11,316
-
583,988
11,045
-
$
1,328
$
1,048,657
$
69,670
$
595,033
$
1,328
-
$
-
$
-
$
-
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Capital Projects
Debt service
Unassigned
Total Fund Balances
Measure M
$
1,328
-
-
-
-
-
-
-
-
1,048,657
-
69,670
-
595,033
-
-
1,048,657
69,670
595,033
1,328
56
$
1,048,657
$
69,670
$
595,033
CITY OF ALISO VIEJO
JUNE 30, 2011
(Continued)
Integrated
Waste
Management
Assets:
Prepaid costs
Restricted assets:
Total Assets
Liabilities:
Accounts payable
Unearned revenues
Retentions payable
$
18,817
12,336
$
-
13,964
-
$
-
585,291
-
Federal
Grants
$
-
32,831
74,957
-
$
31,153
$
13,964
$
585,291
$
107,788
$
-
$
-
$
-
$
106,722
-
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Capital Projects
Debt service
Unassigned
Total Fund Balances
Technology
Grants
Other Grants
$
-
-
-
106,722
-
-
-
-
31,153
-
13,964
-
585,291
-
1,066
-
31,153
13,964
585,291
1,066
31,153
57
$
13,964
$
585,291
$
107,788
CITY OF ALISO VIEJO
JUNE 30, 2011
Special
Revenue
Funds
Aquatics
Center
Assets:
Prepaid costs
Restricted assets:
Total Assets
Liabilities:
Accounts payable
Unearned revenues
Retentions payable
$
832
2,048
-
$
-
17,361
-
Storm Water
$
-
-
2006 COP
$
-
7,212
-
$
2,880
$
17,361
$
-
$
7,212
$
25,216
-
$
15,000
2,361
$
-
$
-
Total Liabilities
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
C
it d
l
t projects
j t
Community
development
Public safety
Capital Projects
Debt service
Unassigned
Total Fund Balances
Capital
Improvements
$
25,216
17,361
-
-
2,048
-
-
-
(24,384)
-
-
7,212
-
(22,336)
-
-
7,212
2,880
58
$
17,361
$
-
$
7,212
CITY OF ALISO VIEJO
JUNE 30, 2011
Debt Service
Funds
Total
Governmental
Debt Service
Assets:
Prepaid costs
Restricted assets:
$
-
Funds
$
515,980
Total Assets
Liabilities:
Accounts payable
Unearned revenues
Retentions payable
515,980
$
2,996,317
$
-
$
41,544
106,722
2,361
Fund Balances:
Nonspendable:
Prepaid costs
Restricted for:
Public safety
Capital Projects
Debt service
Unassigned
Total Fund Balances
$
59
515,980
$
Total Liabilities
1,978,338
2,048
499,951
-
150,627
-
2,048
515,980
-
630,408
69,670
1,651,968
515,980
(24,384)
515,980
2,845,690
515,980
$
2,996,317
CITY OF ALISO VIEJO
COMBINING STATEMENT OF REVENUES,
Traffic
Congestion
Relief
Revenues:
Intergovernmental
$
Total Revenues
Expenditures:
Current:
General government
Community services
Public works
Public safety
Capital outlay
Debt service:
Total Expenditures
Measure M
555
$
786,919
6,792
Public Safety
Grants
Air Quality
Improvement
$
$
100,000
389
51,513
3,696
555
793,711
100,389
55,209
11,327
-
-
102,572
-
-
-
-
-
-
11,327
-
102,572
-
(10,772)
793,711
(146,525)
1,708
(926,435)
-
-
(Uses)
(146,525)
(924,727)
-
-
(157,297)
(131,016)
Transfers in
Transfers out
Fund Balances, Beginning of Year
157,297
$
-
60
(2,183)
1,179,673
$
1,048,657
$
55,209
(2,183)
55,209
71,853
539,824
69,670
$
595,033
CITY OF ALISO VIEJO
(Continued)
Integrated
Waste
Management
Revenues:
Intergovernmental
$
Total Revenues
12,336
204
Technology
Grants
Other Grants
$
9,828
100
$
1,041
Federal
Grants
$
991,245
1,066
12,540
9,928
1,041
992,311
4,774
-
-
16,443
-
-
-
-
-
-
Total Expenditures
4,774
-
16,443
-
7,766
9,928
Expenditures:
Current:
General government
Community services
Public works
Public safety
Capital outlay
Debt service:
Transfers in
Transfers out
(Uses)
$
(15,402)
992,311
-
(12,930)
-
(504,848)
-
(12,930)
-
(504,848)
7,766
(3,002)
(15,402)
487,463
23,387
16,966
600,693
(486,397)
31,153
61
$
13,964
$
585,291
$
1,066
CITY OF ALISO VIEJO
Special
Revenue
Funds
Aquatics
Center
Revenues:
Intergovernmental
$
Total Revenues
Capital
Improvements
100,227
-
$
-
Storm Water
$
-
2006 COP
$
-
100,227
-
-
-
239,758
-
423,716
28,827
-
-
-
-
-
-
239,758
423,716
28,827
-
(139,531)
(423,716)
(28,827)
-
119,432
-
423,716
-
28,827
-
(16,638)
(Uses)
119,432
423,716
28,827
(16,638)
(20,099)
-
-
(16,638)
(2,237)
-
-
23,850
Expenditures:
Current:
General government
Community services
Public works
Public safety
Capital outlay
Debt service:
Total Expenditures
Transfers in
Transfers out
$
(22,336)
62
$
-
$
-
$
7,212
CITY OF ALISO VIEJO
Debt Service
Funds
Total
Governmental
Debt Service
Revenues:
Intergovernmental
$
Total Revenues
Expenditures:
Current:
General government
Community services
Public works
Public safety
Capital outlay
Debt service:
Total Expenditures
1,073
Funds
$
1,073
2,066,984
-
16,443
239,758
44,928
102,572
423,716
140,000
375,840
140,000
375,840
515,840
1,343,257
(514,767)
Transfers in
Transfers out
(Uses)
$
63
1,951,841
100,227
14,916
723,727
514,830
-
1,088,513
(1,607,376)
514,830
(518,863)
63
204,864
515,917
2,640,826
515,980
$
2,845,690
CITY OF ALISO VIEJO
BUDGETARY COMPARISON SCHEDULE
TRAFFIC CONGESTION RELIEF
Public works
Transfers out
Budget Amounts
Original
Final
$ 157,297
$
157,297
$
Actual
Amounts
$ 157,297
Variance with
Final Budget
Positive
(Negative)
$
-
157,297
700
157,997
555
157,852
(145)
(145)
25,000
25,000
20,000
137,000
157,000
11,327
146,525
157,852
8,673
(9,525)
(852)
132,297
64
$
997
$
-
$
(997)
CITY OF ALISO VIEJO
MEASURE M
Intergovernmental
Transfers in
Transfers out
Budget Amounts
Original
Final
$ 1,179,673
$ 1,179,673
$
Actual
Amounts
$ 1,179,673
Variance with
Final Budget
Positive
(Negative)
$
16,919
(5,208)
1,708
13,419
894,000
2,500
2,076,173
770,000
12,000
1,961,673
786,919
6,792
1,708
1,975,092
1,459,600
1,459,600
1,342,600
1,342,600
926,435
926,435
619,073
$ 1,048,657
616,573
65
$
416,165
416,165
$
429,584
CITY OF ALISO VIEJO
PUBLIC SAFETY GRANTS
Intergovernmental
Public safety
Budget Amounts
Original
Final
$
71,853
$
71,853
Actual
Amounts
$
71,853
100,000
50
171,903
100,000
300
172,153
100,000
389
172,242
100,000
100,000
100,000
100,000
102,572
102,572
$
71,903
66
$
72,153
$
69,670
Variance with
Final Budget
Positive
(Negative)
$
89
89
(2,572)
(2,572)
$
(2,483)
CITY OF ALISO VIEJO
AIR QUALITY IMPROVEMENT
Intergovernmental
Budget Amounts
Original
Final
$ 539,824
$
539,824
50,000
1,000
590,824
$
590,824
67
Actual
Amounts
$ 539,824
Variance with
Final Budget
Positive
(Negative)
$
-
51,513
3,696
595,033
1,513
(3,304)
(1,791)
50,000
7,000
596,824
$
596,824
$
595,033
$
(1,791)
CITY OF ALISO VIEJO
INTEGRATED WASTE MANAGEMENT
Intergovernmental
Public works
Budget Amounts
Original
Final
$
23,387
$
23,387
$
68
Actual
Amounts
$
23,387
Variance with
Final Budget
Positive
(Negative)
$
-
23,387
100
23,487
12,336
204
35,927
12,336
104
12,440
15,000
15,000
17,265
17,265
4,774
4,774
12,491
12,491
8,387
$
6,222
$
31,153
$
24,931
CITY OF ALISO VIEJO
OTHER GRANTS
Intergovernmental
Transfers out
Budget Amounts
Original
Final
$
16,966
$
16,966
$
16,966
10
16,976
9,828
100
26,894
9,828
90
9,918
-
9,400
9,400
12,930
12,930
(3,530)
(3,530)
16,966
69
Actual
Amounts
$
16,966
Variance with
Final Budget
Positive
(Negative)
$
-
$
7,576
$
13,964
$
6,388
CITY OF ALISO VIEJO
TECHNOLOGY GRANTS
General government
Budget Amounts
Original
Final
$ 600,693
$
600,693
$
Actual
Amounts
$ 600,693
Variance with
Final Budget
Positive
(Negative)
$
-
600,693
600,693
1,041
601,734
1,041
1,041
15,400
15,400
15,400
15,400
16,443
16,443
(1,043)
(1,043)
585,293
70
$
585,293
$
585,291
$
(2)
CITY OF ALISO VIEJO
FEDERAL GRANTS
Intergovernmental
Transfers out
Budget Amounts
Original
Final
$ (486,397)
$ (486,397)
Actual
Amounts
$ (486,397)
Variance with
Final Budget
Positive
(Negative)
$
-
419,900
(66,497)
663,105
176,708
991,245
1,066
505,914
328,140
1,066
329,206
419,900
419,900
517,900
517,900
504,848
504,848
13,052
13,052
$ (486,397)
71
$
(341,192)
$
1,066
$
342,258
CITY OF ALISO VIEJO
AQUATICS CENTER
Transfers in
Community services
Budget Amounts
Original
Final
$
(2,237)
$
(2,237)
Actual
Amounts
$
(2,237)
Variance with
Final Budget
Positive
(Negative)
$
-
111,100
177,975
286,838
111,100
177,975
286,838
100,227
119,432
217,422
(10,873)
(58,543)
(69,416)
289,075
289,075
289,075
289,075
239,758
239,758
49,317
49,317
$
(2,237)
72
$
(2,237)
$
(22,336)
$
(20,099)
CITY OF ALISO VIEJO
STREET IMPROVEMENTS
Transfers in
Capital outlay
Budget Amounts
Original
Final
$
$
$
-
Variance with
Final Budget
Positive
(Negative)
$
-
Actual
Amounts
-
$
1,451,500
1,451,500
1,519,000
1,519,000
1,105,534
1,105,534
(413,466)
(413,466)
1,501,500
1,501,500
1,519,000
1,519,000
1,105,534
1,105,534
413,466
413,466
(50,000)
73
$
-
$
-
$
-
CITY OF ALISO VIEJO
CAPITAL IMPROVEMENTS
Transfers in
Capital outlay
Budget Amounts
Original
Final
$
$
$
-
Variance with
Final Budget
Positive
(Negative)
$
-
Actual
Amounts
-
$
419,900
419,900
534,900
534,900
423,716
423,716
(111,184)
(111,184)
517,900
517,900
534,900
534,900
423,716
423,716
111,184
111,184
(98,000)
74
$
-
$
-
$
-
CITY OF ALISO VIEJO
STORM WATER
Transfers in
Public works
Budget Amounts
Original
Final
$
$
$
-
$
-
5,000
5,000
5,000
5,000
28,827
28,827
23,827
23,827
5,000
5,000
5,000
5,000
28,827
28,827
(23,827)
(23,827)
-
75
Actual
Amounts
Variance with
Final Budget
Positive
(Negative)
$
-
$
-
$
-
$
-
CITY OF ALISO VIEJO
2006 COP
Transfers out
Budget Amounts
Original
Final
$
23,850
$
23,850
Actual
Amounts
$
23,850
23,850
23,850
23,850
15,000
15,000
15,000
15,000
16,638
16,638
$
8,850
76
$
8,850
$
7,212
Variance with
Final Budget
Positive
(Negative)
$
(1,638)
(1,638)
$
(1,638)
CITY OF ALISO VIEJO
2005-01 CFD
Transfers in
Public works
Budget Amounts
Original
Final
$ 6,765,471
$ 6,765,471
Actual
Amounts
$ 6,765,471
Variance with
Final Budget
Positive
(Negative)
$
(1,682)
1,638
(44)
10,000
15,000
6,790,471
3,800
15,000
6,784,271
2,118
16,638
6,784,227
3,525,000
3,525,000
3,525,000
3,525,000
3,275,965
3,275,965
$ 3,265,471
$ 3,259,271
$ 3,508,262
77
249,035
249,035
$
248,991
CITY OF ALISO VIEJO
DEBT SERVICE
Transfers in
Debt service:
Budget Amounts
Original
Final
$ 515,917
$
515,917
$
Actual
Amounts
$ 515,917
Variance with
Final Budget
Positive
(Negative)
$
73
(2,170)
(2,097)
1,000
517,000
1,033,917
1,000
517,000
1,033,917
1,073
514,830
1,031,820
140,000
377,000
517,000
140,000
377,000
517,000
140,000
375,840
515,840
516,917
78
$
516,917
$
515,980
1,160
1,160
$
(937)
AGENCY FUNDS
Agency Funds are used to account for the assets held by the City as an agent for individuals, private
organizations and other government units. The City of Aliso Viejo has the following Agency Funds:
Refundable Deposits
To account for development deposits made in conjunction with certain building permits issued. Upon
satisfactory completion of the project, the deposit is returned to the depositor.
Community Trust
This fund is used to account for funding received from the Aliso Viejo Community Foundation, a non-profit
organization. The foundation holds fundraisers and provides opportunities for donors to contribute to the
Aliso Viejo Community programs.
CFD 2005-01
This fund is used to account for CFD 2005-01 Mello Roos funds held with the City’s fiscal agent. Funds
held by the fiscal agent include special taxes and the reserve funds for the payment of the bonds.
79
80
CITY OF ALISO VIEJO
ALL AGENCY FUNDS
JUNE 30, 2011
Deposits
Accounts
Fund
Assets:
Receivables:
Accounts
Restricted assets:
Total Assets
Accounts payable
Deposits payable
Total Liabilities
$
Community
Trust
1,110,262
$
2005-01 CFD
62,117
$
-
Totals
$
1,172,379
-
50,565
-
25,654
50,565
25,654
-
-
4,564,936
4,564,936
$
1,110,262
$
112,682
$
4,590,590
$
5,813,534
$
42,033
1,068,229
-
$
527
112,155
-
$
1,594
4,588,996
$
44,154
1,180,384
4,588,996
$
1,110,262
81
$
112,682
$
4,590,590
$
5,813,534
CITY OF ALISO VIEJO
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
Balance
7/1/2010
Additions
Balance
6/30/2011
Deductions
Deposits Accounts Fund
Assets:
Total Assets
Liabilities:
Accounts payable
Deposits payable
Total Liabilities
$
$
819,930
819,930
$
$
903,283
903,283
$
$
612,951
612,951
$
$
1,110,262
1,110,262
$
11,741
808,189
$
40,087
931,411
$
9,795
671,371
$
42,033
1,068,229
$
819,930
$
971,498
$
681,166
$
1,110,262
$
50,287
$
67,053
$
55,223
$
62,117
Community Trust
Assets:
Receivables:
Accounts
Total Assets
Liabilities:
Accounts payable
Deposits payable
Total Liabilities
66,510
51,108
67,053
50,565
$
116,797
$
118,161
$
122,276
$
112,682
$
116,796
$
527
55,223
$
59,864
$
527
112,155
$
116,796
$
55,750
$
59,864
$
112,682
$
117
17,918
$ 2,120,785
8,634
$ 2,120,902
898
$
25,654
4,501,400
2,098,077
2,034,541
$
4,519,435
$ 4,227,496
$ 4,156,341
$
4,590,590
$
1,783
4,517,652
$
1,594
71,344
$
1,783
-
$
1,594
4,588,996
$
4,519,435
$
72,938
$
1,783
$
4,590,590
2005-01 CFD
Assets:
Restricted assets:
Total Assets
Liabilities:
Accounts payable
Total Liabilities
82
4,564,936
CITY OF ALISO VIEJO
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
ALL AGENCY FUNDS
Balance
7/1/2010
Balance
6/30/2011
Additions
Deductions
870,334
$ 3,091,121
$ 2,789,076
66,510
17,918
51,108
8,634
67,053
898
4,501,400
5,456,162
2,098,077
$ 5,248,940
2,034,541
$ 4,891,568
$
$
13,524
924,985
4,517,652
$
42,208
986,634
71,344
$
11,578
731,235
-
$
44,154
1,180,384
4,588,996
$
5,456,161
$ 1,100,186
$
742,813
$
5,813,534
Totals - All Agency Funds
Assets:
Receivables:
Accounts
Restricted assets:
Total Assets
Liabilities:
Accounts payable
Deposits payable
Total Liabilities
$
$
83
$
1,172,379
50,565
25,654
4,564,936
5,813,534
84
STATISTICAL SECTION
This part of the City of Aliso Viejo's comprehensive annual financial report presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary
information say about the government's overall financial health.
Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
government's financial performances and well-being have changed over time.
Net Assets by Component
Fund Balances of Governmental Funds
Changes in Fund Balances of Governmental Funds
General Government - Expenditures by Function
Table
Page
1
2
3
4
5
87
88
89
90
91
6
7
8
9
10
11
12
92
93
94
95
96
97
98
13
14
15
99
100
101
16
17
102
103
18
19
20
21
22
104
105
106
107
108
Revenue Capacity
These schedules contain information to help the reader assess the government's most
significant local revenue source, the property tax.
General Government - Revenues by Source
General Government - Tax Revenues by Source
Principal Sales Tax Producers by Category
Property Tax Levies and Collections
Assessed and Estimated Actual Value of Taxable Property
Direct and Overlapping Property Tax Schedules
Principal Property Taxpayers
Debt Capacity
These schedules present information to help the reader assess the affordability of the
government's current levels of outstanding debt and the government's ability to issue
additional debt in the future.
Ratios of Net General Obligation Debt to Assesses Value and
Net General Obligation Debt Per Capita
Computation of Direct and Overlapping Bonded Debt
Legal Debt Margin
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the government's financial activities take place.
Demographic and Economic Statistics
Principal Employers
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the government's financial report relates to the services the
government provides and the activities it performs.
Operating Indicators by Function
Full-Time and Part-Time City Employees by Function
Capital Assets Statistics by Function
Schedule of Insurance
Miscellaneous Statistical Information
85
86
87
2001-02
Source: City Finance Department
70,000
80,000
90,000
100,000
110,000
120,000
130,000
140,000
Invested in capital assets, net of
related debt
Restricted
Public Works
Public Safety
Debt Service
Unrestricted
Total governmental activities net assets
Thousands
2003-04
42,970
2,713,768
306
4,046,623
$ 82,009,514
17,820
1,650,467
30,000
3,521,956
$ 85,752,429
2002-03
$ 75,205,847
2002-03
$ 80,532,186
2001-02
599,325
2,156,124
31,025
8,301,468
$ 89,986,214
$ 78,898,272
2004-05
2004-05
Fiscal Year
2005-06
2007-08
635,914
17,630,808
517,838
25,297,384
$135,237,544
$ 91,155,600
2008-09
2008-09
530,830
29,201,695
523,394
22,030,514
$129,554,976
$ 77,268,543
2007-08
549,637
3,997,282
50,023
515,615
18,629,391
$101,040,625
$ 77,298,677
2006-07
621,766
2,762,329
66,331
13,370,404
$ 95,414,003
$ 78,593,173
2006-07
Fiscal Years
2005-06
720,033
2,651,463
1,785
6,270,116
$ 86,579,909
$ 76,936,512
2003-04
Last Ten Fiscal Years
City of Aliso Viejo
2009-10
641,045
9,954,078
71,853
515,917
28,120,331
$129,508,586
$ 90,205,362
2009-10
2010-11
630,408
13,836,779
69,670
515,980
23,469,057
$129,140,674
$ 90,618,780
2010-11
Table 1
2001-02
(10,000)
(5,000)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2002-03
1,810,164
Increase (decrease) in net assets
$
2,002,466
515,385
3,918,031
479,316
6,915,198
Expenses
General Government
Public Works
Public Safety
Interest and Fiscal Charges
Total Expense
628,617
1,699,910
2,212,919
321,058
669,607
3,107,734
49,276
36,241
8,725,362
$
2001-02
Taxes
Sales Tax
Property Tax
Franchise Fees
Transient Occupancy Tax
Motor Vehicle License Fees
Investment Income
Other
Total Revenues
Revenues
Program Revenues
Operating Contributions & Grants
Capital Contributions & Grants
Thousands
88
$
$
2003-04
990,032
4,647,829
847,493
2,556,291
4,082,390
12,134,003
3,188,267
2,468,809
888,918
3,658,328
96,851
19,619
13,124,035
700,889
2,087,354
15,000
2002-03
$
$
2004-05
4,570,395
2,810,131
976,026
2,532,850
4,401,999
10,721,006
3,134,363
1,952,594
965,913
3,318,968
84,726
36,600
15,291,401
935,140
2,448,097
2,415,000
2003-04
$
$
$
$
Fiscal Year
2005-06
2006-07
5,427,789
3,171,075
1,353,265
3,082,478
5,197,762
12,804,580
4,148,421
5,560,908
1,144,507
1,780,485
349,508
63,177
18,232,369
1,408,633
2,283,302
1,493,428
2005-06
Fiscal Years
Changes in Net Assets
2,464,578
3,068,860
944,031
3,455,630
4,841,160
12,309,681
3,677,071
4,486,693
1,015,572
1,516,093
155,396
67,170
14,774,259
940,891
2,036,133
879,240
2004-05
City of Aliso Viejo
Changes in Net Assets
$
$
2007-08
5,626,622
3,366,228
1,741,402
3,508,562
5,536,714
359,192
14,512,098
4,545,588
6,019,456
1,353,882
1,329,365
994,726
171,243
20,138,720
1,921,159
2,871,037
932,264
2006-07
3,741,219
1,811,146
5,382,758
6,163,625
409,355
17,508,103
4,298,575
6,311,174
1,420,355
1,240,275
879,647
68,723
46,022,454
1,401,383
2,960,905
27,441,417
$
$
2008-09
$ 28,514,351
$
2007-08
5,682,568
2,813,832
2,156,261
2,875,719
6,483,638
401,622
14,731,072
3,815,511
6,303,666
1,457,663
444,261
130,041
485,593
78,684
20,413,640
1,670,614
2,826,912
3,200,695
2008-09
2,609,883
2,466,100
11,302,397
6,475,501
394,224
23,248,105
3,896,695
6,084,737
1,466,541
559,261
134,924
156,972
202,326
17,519,147
1,861,525
2,355,183
800,983
2009-10
$ (5,728,958)
$
2009-10
(555,985)
2,670,620
2,856,963
6,367,126
6,516,727
386,473
18,797,909
4,213,850
5,986,652
1,490,642
622,710
270,180
170,154
64,340
18,241,924
1,960,206
3,463,190
-
2010-11
$
$
2010-11
Table 2
2001-02
2001-02
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2002-03
All other govenmental funds
Nonspendable:
Prepaid
$
Assigned to:
Emergencies & Unanticipated Traffic Projec
Restricted For:
Community Development Projects
90,338
Public Safety
Capital Projects
1,622,990
Debt Service
Unassigned:
Total All Other Governmental Funds
$ 1,713,328
General Fund Balances
Nonspendable:
Prepaid
$
Assigned to:
Contingencies
Self Insurance/benefit obligations
Asset Replacement
Emergencies & Unanticipated Traffic Projec
Unassigned:
3,506,915
Total General Fund
$ 3,506,915
Thousands
89
74,409
2003-04
89,639
-
-
587,690
31,025
2,767,084
$ 3,385,799
$
9,144,741
$ 9,234,380
$
2004-05
97,552
305,625
-
604,561
66,331
4,469,943
$ 5,446,460
$
4,456,254
135,000
8,091,222
$ 12,780,028
$
Fiscal Years
2005-06
241,125
2004-05
2005-06
Fiscal Year
2006-07
-
549,815
50,023
6,731,486
1,822,193
$ 9,394,642
$
237,264
-
2007-08
5,255,635
135,000
550,000
79,300
2008-09
207,750
1,845
4,444,549
135,000
700,000
66,754
181,500
-
90,565
-
11,878
630,408
69,670
13,836,779
515,980
(54,807)
$ 15,009,908
$
4,741,227
471,500
7,838,000
2,000,000
8,364,455
$ 23,505,747
$
2010-11
Table 3
2010-11
Other Govt Funds
General Fund
641,046
71,853
15,565,937
515,917
(1,330)
$ 16,974,923
$
16,296,062
$ 21,642,365
$
2009-10
2009-10
586,026
15,760
22,528,092
517,838
24,176
$ 23,881,487
$
13,837,440
$ 19,857,375
$
2008-09
616,336
32,623,615
775,271
$ 34,252,486
$
14,478,712
$ 19,605,598
90,736
12,070,495
$ 17,167,150
$
4,901,150
135,000
79,413
2007-08
4,882,242
135,000
$
2006-07
Fund Balances Of Governmental Funds
706,061
1,785
3,385,467
$ 4,093,313
-
42,969
(36,984)
2,713,769
$ 2,757,044
$
-
37,290
82,781
6,984,725
$ 7,067,506
$
2003-04
-
$
5,473,034
$ 5,547,443
$
2002-03
City of Aliso Viejo
Fund Balances of Governmental Funds
90
Debt Service as a Percentage
of Noncapital Expenditures
Other Financing Sources (Uses)
Transfers In
Transfers Out
Bonds Issued
Total Other Financing
Sources (Uses)
Excess of Revenues over
Expeditures
General Government
Public Works
Public Safety
Capital Outlay
Debt Service
Principal
Interest
Other Charges
Total Expenditures
Expeditures
Taxes
Licenses and Permits
Intergovernmental
Fines and Forfeitures
Developer Fees
Contributions From Property Owners
Investment Income
Rental Income
Other
Total Revenues
Revenues
$
3,084,244
0.00%
0.00%
491,272
(491,272)
-
3,084,244
5,220,243
-
5,220,243
10,039,791
3,505,119
6,545,994
278,896
5,713,170
178,329
204,064
144,363
39,600
19,619
13,124,035
3,093,875
845,073
1,559,549
4,082,022
459,272
$
2002-03
1,970,245
514,433
459,242
478,919
82,280
3,203,584
427,227
4,807,644
68,825
132,565
49,276
30,000
6,241
8,725,362
2001-02
$
0.00%
2,856,332
459,274
(459,274)
-
2,856,332
10,020,069
2,747,106
968,367
1,443,691
4,401,631
459,274
6,055,619
289,177
5,734,998
296,105
308,609
135,967
41,250
14,676
12,876,401
2003-04
$
0.00%
1,459,360
1,982,338
(1,982,338)
-
1,459,360
12,427,602
2,884,728
936,371
1,651,481
4,840,775
2,114,247
9,181,607
272,485
3,481,213
382,595
282,346
239,432
3,465
43,819
13,886,962
2004-05
0.00%
5,606,309
857,789
(857,789)
-
5,606,309
12,506,901
3,163,579
1,345,648
1,644,379
1,155,885
5,197,410
2006-07
3.31%
8,335,304
6,708,005
(6,708,005)
8,155,000
8,155,000
180,304
215,840
398,616
19,925,217
3,291,991
1,734,964
2,081,753
5,531,834
6,670,219
$ 11,926,855
883,901
3,912,995
537,739
372,967
932,264
1,213,594
125,758
199,448
20,105,521
Fiscal Year
$ 10,860,541
559,012
3,858,876
547,907
301,716
1,493,428
471,472
20,258
18,113,210
2005-06
City of Aliso Viejo
Changes in Fund Balances of Governmental Funds
3.37%
27,296,292
3,704,264
(3,704,264)
-
27,296,292
120,000
398,336
18,765,616
3,605,757
1,805,488
1,859,969
6,153,657
4,822,409
$ 12,042,206
504,139
4,004,170
305,038
379,642
778,570
26,272,733
1,533,223
209,568
32,619
46,061,908
2007-08
$
1.73%
(10,119,222)
4,078,611
(4,078,611)
-
(10,119,222)
125,000
390,699
30,460,502
4,019,647
2,150,495
2,006,849
6,460,502
15,307,310
12,035,875
552,656
3,467,884
440,980
411,705
2,232,416
896,633
260,341
42,790
20,341,280
2008-09
$
2.38%
(5,121,574)
2,760,167
(2,760,167)
-
(5,121,574)
2.94%
(172,755)
2,493,292
(2,493,292)
-
(172,755)
18,959,218
130,000
383,399
22,279,082
12,326,544
608,902
3,412,669
756,087
346,217
809,253
205,280
296,069
25,442
18,786,463
2,285,841
2,815,425
5,320,097
6,492,765
1,529,250
140,000
375,840
$
2010-11
2,155,933
2,460,168
1,976,517
6,452,398
8,720,667
12,019,898
588,290
2,115,364
647,850
346,117
800,983
198,714
275,063
165,229
17,157,508
2009-10
Table 4
Table 5
City of Aliso Viejo
General Government
Expenditure by Function*
Fiscal
Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
General
Government
$
1,970,245
3,093,875
2,747,106
2,884,728
3,163,578
3,291,991
3,605,757
4,019,647
2,155,933
2,285,841
Community
Development
$
514,433
845,073
968,367
936,371
1,345,648
1,734,964
1,805,488
2,150,495
2,460,168
2,815,425
Public
Works
$
Public
Safety
459,242
1,559,549
1,443,691
1,651,481
1,644,379
2,081,753
1,859,969
2,006,849
1,976,517
5,320,097
$
478,919
4,082,022
4,401,631
4,840,775
5,197,410
5,531,834
6,153,657
6,460,502
6,452,398
6,492,765
Capital
Outlay
$
82,280
459,272
459,274
2,114,247
1,155,885
6,670,219
4,822,409
15,307,310
8,720,667
1,529,250
Debt
Service
$
Total
614,456
518,336
515,699
513,399
515,840
$
3,505,119
10,039,791
10,020,069
12,427,602
12,506,900
19,925,217
18,765,616
30,460,502
22,279,082
18,959,218
Total General Government Expenditures
Fiscal Year 2001-02
Fiscal Year 2002-03
Fiscal Year 2003-04
Fiscal Year 2004-05
Fiscal Year 2005-06
Fiscal Year 2006-07
Fiscal Year 2007-08
Fiscal Year 2008-09
Fiscal Year 2009-10
Fiscal Year 2010-11
16,000
14,000
Thousands
12,000
10,000
8,000
6,000
4,000
2,000
0
General
Government
Community
Development
Public Works
Function
*Includes General and Special Revenue Funds.
91
Public Safety
Capital Outlay
Debt Service
Table 6
City of Aliso Viejo
General Government
Revenues by Source*
Fiscal
Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Licenses
& Permits
Taxes
$ 3,203,584
6,545,994
6,055,619
9,181,607
10,860,541
11,926,855
12,042,206
12,035,875
12,019,898
12,326,544
$
427,227
278,896
289,177
272,485
559,012
883,901
504,139
552,656
588,290
608,902
InterGovernmental
$ 4,807,644
5,713,170
5,734,998
3,481,213
3,858,876
3,912,995
4,004,170
3,467,884
2,115,364
3,412,669
Charges for
Services
$
68,825
178,329
296,105
382,595
547,907
537,739
305,038
440,980
647,850
756,087
Fines &
Forfeitures
$
132,565
204,064
308,609
282,346
301,716
372,967
379,642
411,705
346,117
346,217
Investment
Income
$
Use of Money
& Property
49,276
144,363
135,967
239,432
471,472
1,213,594
1,533,223
896,633
198,714
205,280
$
30,000
39,600
41,250
3,465
125,758
209,568
260,341
275,063
296,069
Other
Revenue
$
6,241
19,619
14,676
43,819
1,513,686
1,131,712
27,083,922
2,275,206
966,212
834,695
Total
$ 8,725,362
13,124,035
12,876,401
13,886,962
18,113,210
20,105,521
46,061,908
20,341,280
17,157,508
18,786,463
Total General Government Revenues
$50,000
$45,000
Other Revenue
$40,000
Use of Money & Property
Investment Income
$35,000
Fines & Forfeitures
Thousands
$30,000
$25,000
Inter-Governmental
Licenses & Permits
$20,000
Taxes
$15,000
$10,000
$5,000
$2001-02
2002-03
2003-04
2004-05
2005-06
2006-07 2007-08
Fiscal Year
* Includes General and Special Revenue Funds.
Source:
City Finance Department
92
2008-09
2009-10
Table 7
City of Aliso Viejo
General Government
Tax Revenues by Source
Fiscal
Year
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Sales Taxes
$
Property Taxes
2,212,919
3,188,267
3,134,363
3,677,071
4,148,421
4,545,588
4,298,575
3,815,511
3,896,695
4,213,850
$
Transient
Occupancy Taxes
Franchise Taxes
321,058
2,468,809
1,952,594
4,486,693
5,560,908
6,019,456
6,311,174
6,303,666
6,084,737
5,986,652
$
669,607
888,918
965,913
1,015,572
1,144,507
1,353,882
1,420,355
1,457,663
1,466,541
1,490,642
$
444,261
559,261
622,710
Other Taxes
$
2,749
2,271
6,705
7,929
12,102
14,774
12,664
12,690
Total
$
3,203,584
6,545,994
6,055,619
9,181,607
10,860,541
11,926,855
12,042,206
12,035,875
12,019,898
12,326,544
Total General Government Tax Revenues by Source
$7,000
$6,000
2001-02
2002-03
$5,000
2003-04
Thousands
2004-05
2005-06
2006-07
$4,000
2008-09
2008-09
2009-10
$3,000
2010-11
$2,000
$1,000
$Sales Taxes
Property Taxes
Franchise Taxes
Tax Source
93
Transient
Occupancy Taxes
Other Taxes
94
$-
Services Stations
Auto Dealers and Supplies
$150
$ 312,904,000
2004
$ 14,840,000
48,528,000
15,514,000
40,311,000
396,000
5,374,000
37,993,000
83,176,000
66,772,000
General Merchandise
$100
$ 320,938,000
2003
$ 13,373,000
61,083,000
14,205,000
39,532,000
607,000
4,590,000
32,131,000
84,472,000
70,945,000
$ 413,998,000
2006
$ 17,154,000
50,421,000
15,081,000
48,499,000
28,457,000
5,879,000
45,994,000
115,943,000
86,570,000
$200
Other Retail Stores
Food Stores
In Millions
$250
$300
$350
$ 430,771,000
2008
$ 16,370,000
54,143,000
14,231,000
47,426,000
33,205,000
6,682,000
52,892,000
115,456,000
90,367,000
All Other Outlets
$400
$450
$ 383,819,000
2010
$ 17,462,000
47,257,000
15,406,000
50,366,000
23,315,000
4,938,000
47,088,000
88,654,000
89,333,000
Building Materials
$ 412,676,000
2009
$ 16,128,000
49,756,000
14,123,000
47,974,000
28,429,000
3,956,000
56,860,000
106,347,000
89,103,000
Eating and Drinking Places
$ 451,289,000
2007
$ 17,008,000
53,469,000
14,043,000
47,624,000
29,613,000
6,274,000
51,029,000
140,348,000
91,881,000
Sales Tax Producers by Category
$ 353,197,000
2005
$ 17,031,000
45,877,000
16,029,000
45,036,000
4,058,000
5,414,000
39,034,000
104,273,000
76,445,000
City of Aliso Viejo
Principal Sales Tax Producers by Category
June 30, 2011
Apparel Stores
$50
Source: HDL Coren & Cone
State Board of Equalization
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 83,878,000
Total
2002
3,736,000
20,850,000
3,373,000
9,464,000
215,000
577,000
5,135,000
22,609,000
17,919,000
$
Apparel Stores
General Merchandise
Food Stores
Eating and Drinking Places
Building Materials
Auto Dealers and Supplies
Services Stations
Other Retail Stores
All Other Outlets
Fiscal Year
$500
$ 401,088,000
2011
$ 17,323,000
46,741,000
17,587,000
50,344,000
23,720,000
4,959,000
55,095,000
94,331,000
90,988,000
Table 8
Table 9
City of Aliso Viejo
Fiscal
Year
Taxes Levied
for the Fiscal
2001-02*
N/A
2002-03
$
Collected within the Fiscal
Year of Levy
Percent of
Amount
Levy
N/A
Collections in
Subsequent Years
Delinquency Fees
Collected
N/A
N/A
N/A
1,029,272
$ 1,015,855
98.70%
2003-04
1,500,952
1,499,971
2004-05
1,367,829
2005-06
$
Total Levy Collections
to Date
Percent of
Amount
Levy
N/A
$
N/A
13,417
3,322
99.93%
981
17,816
1,500,952
100.00%
1,362,607
99.62%
5,222
15,877
1,367,829
100.00%
1,512,101
1,450,386
95.92%
61,715
-
1,512,101
100.00%
2006-07**
5,451,278
5,451,278
100.00%
-
90,573
5,451,278
100.00%
2007-08**
7,240,770
7,209,406
99.57%
31,364
81,078
7,240,770
100.00%
2008-09**
7,353,193
7,292,107
99.17%
61,086
56,952
7,353,193
100.00%
2009-10**
8,394,122
7,805,356
92.99%
82,689
-
7,888,045
93.97%
2010-11**
9,158,468
9,083,989
99.19%
-
-
9,083,989
99.19%
1,029,272
100.00%
Taxes Levied
Total Collections
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
Fiscal Year
* The City was not eligible to collect any Property Taxes in its first year of incorporation.
** Includes amounts received for Property Tax-In Lieu of VLF
Source: Orange County Auditor/Controller.
95
2008-09
2009-10
2010-11
Table 10
City of Aliso Viejo
Assessed and Estimated Actual Value of Taxable Property
Fiscal
Year
2001-02**
2002-03
$
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
Secured
Gross Value
Unsecured
Gross Value
N/A
4,811,622,945
5,431,025,169
5,673,713,729
6,218,486,578
6,970,094,083
7,502,173,644
7,781,094,363
7,551,840,842
7,461,106,826
Nonunitary
Utilities
N/A
$
Exemptions
N/A
205,837,551
302,719,951
273,180,095
283,810,583
287,474,126
324,805,126
$
-
$
N/A
165,922,018
207,472,561
202,228,116
247,384,598
304,647,030
275,492,485
272,760,549
286,137,605
326,124,781
Total
$
N/A
4,645,700,927
5,223,552,608
5,471,485,613
6,176,939,531
6,968,167,004
7,499,861,254
7,792,144,397
7,553,177,363
7,459,787,171
Percentage
Increase
N/A
12.44%
4.75%
12.89%
12.81%
7.63%
3.90%
-3.07%
-1.24%
Net Taxable Property Value
$8,000
$7,500
Millions
$7,000
$6,500
$6,000
$5,500
$5,000
$4,500
$4,000
2002-03
2003-04
2004-05
2005-06
2006-07
Fiscal Year
96
2007-08
2008-09
2009-10
2010-11
97
0.97866
0.97866
0.97866
-
0.02134
2002
1.26769
1.24603
0.97866
0.01054
0.02897
0.02151
0.19965
0.00670
0.02166
0.02134
2003
1.23258
1.21092
0.97866
0.01292
0.02594
0.18730
0.00610
0.02166
0.02134
2004
1.23517
1.21352
0.97866
0.01191
0.02020
0.03626
0.16069
0.00580
0.02165
0.02134
2005
1.18922
1.16755
0.97866
0.01078
0.01897
0.03079
0.12315
0.00520
0.02167
0.02134
2006
1.17717
1.15549
0.97866
0.00947
0.01720
0.03694
0.10852
0.00470
0.02168
0.02134
2007
1.14363
1.12193
0.97866
0.01019
0.01808
0.02668
0.08382
0.00450
0.02170
0.02134
2008
1.16923
1.14755
0.97866
0.00971
0.01544
0.02834
0.11110
0.00430
0.02168
0.02134
2009
In 1978, California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for
Overlapping rates are those of local and county governments that apply to property owners within the City. Not all overlapping rates apply to all city
(2)
(1)
Total Direct & Overlapping Tax Rates
Total Overlapping Rates
Overlapping Basic Rate(1)
Capistrano Union
Laguna Beach Unified
Saddleback Valley Unified
El Toro Water District Bond Fund
Moulton Niguel Water District
Metropolitan Water District
Overlapping Rates(2)
Total City Direct Rate
City Basic Rate(1)
City Direct Rates
City of Aliso Viejo
Direct and Overlapping Property Tax Rates
(Rate per $100 of assessed value)
1.17776
1.15611
0.97866
0.01077
0.01683
0.03043
0.11512
0.00430
0.02165
0.02134
2010
1.17863
1.15699
0.97866
0.01105
0.01582
0.03194
0.11582
0.00370
0.02164
0.02134
2011
Table 11
Table 12
City of Aliso Viejo
Principal Property Tax Payers
June 30, 2011
2011
Taxpayer
Primary Use
2002
Assessed
Valuation
Percentage of
Total Assessed
Valuation
$ 105,248,809
1.41%
$47,654,110
1.03%
91,279,546
1.96%
Assessed
Valuation
Percentage of
Total Assessed
Valuation
City Lights Aliso Viejo LLC
Residential
Moritz Associates LLC
Residential
104,816,741
1.40%
Rreef American Reit II Corporation
Commercial
92,155,000
1.23%
N/A
Barcelona LLC
Residential
90,328,073
1.21%
78,686,849
Sequoia Equities-Alicante
Residential
73,782,270
0.99%
N/A
N/A
Qlogic
Commercial
71,681,406
0.96%
N/A
N/A
Sequoia Equities-Alize
Residential
70,400,000
0.94%
N/A
N/A
Pacific Life Insurance Company
Commerical
67,235,995
0.90%
N/A
N/A
OC SD Holdings LLC
Residential
64,232,687
0.86%
N/A
N/A
Ailso-Holly Oaks Partners LLC
Residential
60,050,295
0.80%
NA
NA
$799,931,276
10.72%
$217,620,505
Top Ten Totals
Orange County Assessor
98
N/A
1.69%
4.68%
Table 13
City of Aliso Viejo
Ratios of Net Direct General Obligation Debt
Fiscal
Year
2001-02
2002-03
Net Direct General
Obligation Debt
$
Assessed
Value
-
$ 4,465,700,927
-
4,645,700,927
Percentage of General
Obligation Debt to
Assessed Value
Population
0.000%
(1)
Net General
Obligation
Debt per Capita
42,591
-
-
0.000%
43,955
-
-
-
-
2003-04
-
5,223,552,608
0.000%
44,846
2004-05
-
5,673,713,729
0.000%
44,854
-
2005-06
-
6,424,324,129
0.000%
44,924
2006-07
8,155,000
6,968,167,004
0.117%
45,037
0.39%
181
2007-08
8,035,000
7,499,861,254
0.107%
45,246
0.36%
178
0.34%
173
-
2008-09
7,910,000
7,792,144,397
0.102%
45,683
2009-10
7,780,000
7,553,177,363
0.103%
45,634
0.35%
170
0.102%
47,823
0.43%
160
2010-11
7,640,000
7,459,787,171
Ratios to 2009-2010 Assessed Valuation:
Direct Debt
Total Direct and Overlapping Tax and Assessment Debt
Gross Combined Total Debt
Net Combined Total Debt
(1)
Percentage of
Personal
Income
0.10%
2.40%
2.70%
2.69%
For fiscal year 2001-2002, assessed valuation information for the City is not available since the
City's incorporation date is July 2001.
Source: California Municipal Statistics, Inc
HDL Coren & Cone
99
Table 14
City of Aliso Viejo
Computation of Direct and Overlapping Bonded Debt
June 30, 2011
2010-2011 Assessed Valuations
7,459,787,171
OVERLAPPING TAX AND ASSESSMENT DEBT:
% Applicable (1)
Metropolitan Water District
Capistrano USD School Facilities Improvement District No 1
Laguna Beach Unified School District,
Saddleback Valley Unified School District
Moulton-Niguel Water District, I.D No. 6
City of Aliso Viejo Community Facilities Disctrict No. 2005-01
Capistrano USD Community Facilities District No 87-1
Orange County Community Facilities District No. 88-1
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
0.418%
0.900%
2.019%
0.479%
96.533%
100.000%
73.983%
100.000%
Debt 6/30/11
951,661
436,049
633,259
646,339
25,306,126
34,070,000
37,416,902
61,585,000
161,045,336
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Orange County General Fund Obligations
Orange County Pension Obligations
Orange County Board of Education Certificates of Participation
South Orange County Community College District C.O.P.
Capistrano Unified School District Certificates of Participation
Municipal Water District of Orange County Water Facilities Corp.
Moulton-Niguel Water District Certificates of Participation
Total Overlapping General Fund Debt
City of Aliso Viejo C.O.P.
1.997%
1.997%
1.997%
4.647%
11.011%
2.361%
24.282%
6,328,453
1,092,009
379,430
807,416
2,530,328
333,373
21,077,990
32,548,999
100.000%
7,640,000
TOTAL GROSS OVERLAPPING GENERAL FUND OBLIGATION DEBT
Less: MWDOC Water Facilities Corporation (100% Self-supporting)
TOTAL NET OVERLAPPING GENERAL FUND OBLIGATION DEBT
GROSS COMBINED TOTAL DEBT
NET COMBINED TOTAL DEBT
40,188,999
333,373
39,855,626
201,234,335 (2)
200,900,962
(1) Percentage of overlapping agency's assesed valuation located within boundries of the city.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortage revenue and tax allocation
bonds and non-bonded capital lease obligations.
Ratios to Assessed Valuation:
Combined Direct Debt ($7,640,000)
Total Direct and Overlapping Tax and Assessment Debt
Gross Combined Total Debt
Net Combined Total Debt
0.10%
2.40%
2.70%
2.69%
STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/11: $0
Source: California Municipal Statistics, Inc
100
Table 15
City of Aliso Viejo
Legal Debt Margin
June 30, 2011
Fiscal Years
Legal Debt Margin
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
$
174,213,785
180,435,860
203,663,444
220,834,140
240,912,155
253,151,263
294,523,935
292,205,415
286,194,311
284,331,698
Computation Of Legal Debt Margin for Fiscal Year 2009-10
Assessed Valuations:
Assessed Value
Add Back: Exempt Property
Total Assessed Value
$ 7,459,787,171
326,124,781
$ 7,785,911,952
Legal Debt Margin:
Debt limitations-3.75% of Total Assessed Value*
$
Amount of Debt Applicable to Limit
291,971,698
7,640,000
Legal Debt Margin
$
Note: The general laws of the State of California for muncipalities provide for a legal debt limit of 15%
of grossed assessed valuation. However, this provision was enacted when assessed valuation was
establised based on 25% of market value. Effective with fiscal year 1981-82, taxable property is
assessed at 100% of market value. Although the debt limit provision has not been amended by the State
since this change, the percentage has been proportionately modified to 3.75% for the purpose of this
calculation for consistency with the original intent of the State's debt limit.
HDL Coren & Cone
101
284,331,698
Table 16
City of Aliso Viejo
Demographic and Economic Statistics
Calendar
Year
Population
2001
42,591
2002
43,955
2003
44,846
2004
Total Income
$
1,500,479,339
Per Capita
Income
$
Total
Employment
Employment
Growth Rate
Unemployment
Rate
35,230
26,200
N/A
2.00%
1,595,698,365
36,303
26,200
0.00%
2.60%
1,668,540,276
37,206
26,700
1.91%
2.50%
44,854
1,710,327,874
38,131
27,200
1.87%
2.20%
2005
44,924
1,755,584,996
39,079
27,500
1.10%
1.90%
2006
45,037
1,791,256,601
39,773
28,000
1.82%
1.80%
2007
45,249
1,857,154,707
41,043
28,000
0.00%
2.00%
2008
45,683
2,052,308,775
44,925
27,700
-1.07%
2.70%
2009
45,634
1,977,868,828
43,342
26,100
-5.78%
4.80%
2010
47,823
2,059,354,026
43,062
25,600
-1.92%
4.90%
Aliso Viejo
Total Employment
Per Capita Income
Population
60,000
50,000
40,000
30,000
20,000
10,000
Calendar Year
Source: Department of Finance
Orange County Business Council
HDL Coren & Cone
102
Table 17
City of Aliso Viejo
Principal Employers
June 30, 2011
2011
Employer
UPS
Number of
Employees
2006**
Percent of
Total
Employment
Number of
Employees
Percent of
Total
Employment
1000
5.67%
N/A
N/A
Pacific Life Insurance
811
4.59%
N/A
N/A
Capistrano Unified School District
679
3.85%
N/A
N/A
Fluor Corporation
630
3.57%
500
3.38%
Quest Software
600
3.40%
600
4.05%
Qlogic
490
2.78%
180
1.22%
Renaissance-Aliso Viejo
259
1.47%
N/A
N/A
Pepsi Bottling Group Inc
215
1.22%
200
1.35%
Smith Micro Software Inc
200
1.13%
N/A
N/A
Merit Property Management
199
1.13%
180
1.22%
Buy.com Inc
185
1.05%
186
1.26%
Lennar Corporation
175
0.99%
N/A
N/A
Target
170
0.96%
150
1.01%
Bausch & Lomb
160
0.91%
N/A
N/A
Ambry Genetics Corp
156
0.88%
N/A
N/A
The Covington
153
0.87%
200
1.35%
Lensx Lasers
150
0.85%
N/A
N/A
Lowe's
130
0.74%
150
1.01%
6362
36.05%
Total Top Employers
Total Employees in City
17650
**Data unavailable prior to FYE 2006.
103
Table 18
City of Aliso Viejo
Operating Indicators by Function
Fiscal Year
2005-06
2006-07
2001-02
2002-03
2003-04
2004-05
634
557
516
606
534
530
572
488
467
498
Public Works:
Streets Resurfaced
Building Permits Issued
Plan Checks Preformed
16
1156
143
13
1095
164
14
996
141
9
1004
110
8
1383
120
28
1442
296
60
916
233
11
958
226
60
1031
171
41
1124
174
Community Services:
Iglesia Park & FRC
Events Held
Special Programs
Recreation Classes
2
5
100
4
10
150
8
10
200
12
12
225
12
12
250
20
12
264
29
12
297
8
6
299
9
11
299
9
9
329
Aliso Viejo Ranch
City Events
Healthy Families Workshops
0
0
0
0
0
0
0
0
0
0
0
0
1
0
0
2
4
6
2
6
17
3
9
9
2
5
15
2
5
8
Shared Community Events *
7
8
9
9
6
11
12
14
13
5
Police:
Part I Crimes
Source: City Public Works Department, Community Services Department,Orange County
Sheriff's Department
104
2007-08
2008-09
2009-10
2010-11
Table 19
City of Aliso Viejo
Full-Time and Part-Time City Employees by Function
Function
General Government 1
2001-02
2002-03
2003-04
9
9
9
Full-Time Equivalent Employees as of June 30
2004-05
2005-06
2006-07
2007-08
9
10
11
Public Safety
**Police Services were contracted through the Orange
County Sheriffs Department
Public Works
**Public Works Engineering and Building & Safety were
contracted through Charles Abbott and Associates
Total
1
2008-09
2009-10
2010-11
11
12
12
12
2
2
2
2
2
3
3
3
3
3
11
11
11
11
12
14
14
15
15
15
Attorney Services were contracted through Best, Best, & Krieger LLP and are not included.
105
106
1
1
73
1230
42
1
1
73
1230
42
2002-03
1
1
73
1230
42
2003-04
1
1
73
1263
42
2004-05
Source: City Public Works Department
1
1
73
1263
42
1
1
73
1263
42
Fiscal Year
2005-06
2006-07
*** Aliso Viejo Community Association independently owns and manages 19 parks in Aliso Viejo
Parks & Recreation:
Parks ***
Community Facilities
Public Works:
Streets (Miles)
Street Lights
Traffic Signals
2001-02
City of Aliso Viejo
Capital Assets Statistics by Function
1
1
73
1263
42
2007-08
2
2
73
1263
42
2008-09
2
2
73
1263
42
2009-10
2
2
73
1263
42
2010-11
Table 20
Table 21
City of Aliso Viejo
Schedule of Insurance
June 30, 2011
Type of Coverage
Limits/Deductibles
Insurer
Policy period
General and Automobile Liability:
General Liability, Automobile Liability,
Bodily Injury, Property Damage,
Personal Injury.
$50,000,000 limit per occurrence,
$50,000,000 annual aggregate.
Self Insured Program/
California Joint Powers
Insurance Authority.
07/1/08-Until
suspended or
terminated.
Special Liability:
Errors and omissions, Employment
Practices injury, Contractual Liability
injury, Broadcast/Publication injury
Employee Benefits-Administration
injury, Discrimination injury.
$45,000,000 limit each occurrence,
$45,000,000 annual aggregate.
Retained loss of $30,000 per
occurrence.
07/1/08-Until
suspended or
terminated.
Pollution & Remediation Legal Liability:
Scheduled property, streets, storm
drains, approved underground tanks &
non-owned disposal sites.
CJPIA Limit $50,000,000 for 3 years.
$10,000,000 per member. Self insured retention $50,000 per occurrence.
07/01/08-07/01/11
Property:
All-Risk, including buildings, contents,
garaged vehicles, contractor's equipment, fine arts, rental income and other
miscellaneous extensions of coverage.
Limit $500,000,000 per occurrence,
deductible of $5,000 per occurrence.
Coverage is written at replacement
cost.
01/01/09 - 07/01/10
Crime:
Public Employee Blanket
Fidelity BondFaithful Performance Bond
Coverage 'O'
$1,000,000 limit per member,
deductible of $2,500 per occurrence
07/01/10-07/01/11
Depositor's Forgery
Coverage 'B'
07/01/10-07/01/11
Crime- Money & Securities
Coverage 'C'
07/01/10-07/01/11
Computer Fraud
Coverage 'F'
07/01/10-07/01/11
California Statutory Benefits
$10,000,000 per occurrence,
07/01/10-07/01/11
$1,000,000 per occurrence,
$1,000,000 aggregate per event.
$5,000 medical expense limit.
07/01/10-07/01/11
Worker's Compensation:
Work related injury/illness claims for
temporary and permanent disability.
Special Events:
Tenants/Users for Property
damage/bodily injury
107
Table 22
City of Aliso Viejo
Miscellaneous Statistical Information
June 30, 2011
Date of Incorporation
……………………………………………………………………… July 01, 2001
Form of Government
Area
……………………………………………………………………… Council-Manager
……………………………………………………………………… 6.9 Square miles
Miles of Streets
Miles of Sidewalks
……………………………………………………………………… 73.7 miles
……………………………………………………………………… 147 miles
Employees
………………………………………………………………………
Public Safety
Police Department
Fire Department
………………………. Contracted with the Orange County Sheriff's Department
…………………………………Contracted with the Orange County Fire Authority
Recreation & Culture:
Parks - Community & Neighborhood ……………… ……………………………………………
15
23
Park Acreage (developed) ……………………………………………………………………… 260 Acres
Education:
Elementary Schools (K-6)
Middle Schools (6-8)
High Schools (9-12)
Private Schools
Special Need Schools
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
………………………………………………………………………
*Source: State of California, Department of Finance
108
5
2
1
4
1

CAFR 2010-11 - City of Aliso Viejo

Transcription

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