CITY OF
CHULA VISTA
CALIFO RNIA
FISCAL YEAR ENDED
June 30, 2023
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
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CllYOF
CHULA VISTA
CITY OF
CHULA VISTA
Annual Comprehensive
Financial Report
For The Fiscal Year Ended
June 30, 2023
Compiled
under the direction of
Sarah Schoen
Director of Finance/Treasurer
State of California
Mayor
John McCann
City
Council
Carolina Chavez
Jose Preciado
Alonso Gonzalez
Andrea Cardenas
City Manager
Maria
Kachadoorian
CllY OF
CHUlA VISTA
CITY OF
CHULA VISTA
CITY OF CHULA VISTA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
INTRODUCTORY SECTION (Unaudited)
Page
Number
Letter of Transmittal ............................................................................................................................................ .i List of City Officials ............................................................................................................................................ v Organizational Chart ............................................................................................................................................ vi Certificate of Achievement for Excellence in Financial Reporting .................................................................... vii
FINANCIAL SECTION
Independent Auditors' Report ......................................................................................................................... 1 Management's Discussion and Analysis (Required Supplementary Information) ...................................... 5 Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position ............................................................................................................................ 29 Statement of Activities ................................................................................................................................ 30 Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ....................................................................................................................................... 36 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................... 39 Statement of Revenues, Expenditures and Changes in Fund Balances ........................................................................................................................................ 40 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities .................................................................................................................. 43 Proprietary Fund Financial Statements:
Statement of Net Position ..................................................................................................................... 46 Statement of Revenues, Expenses and Changes in Fund Net Position ................................................. 48 Statement of Cash Flows ..................................................................................................................... 50 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ..................................................................................................... 56 Statement of Changes in Fiduciary Net Position .................................................................................. 57 Notes to Basic Financial Statements ............................................................................................................ 60 Required Supplementary Information:
Budgetary Comparison Schedule by Department - General Fund .............................................................. 123 Budgetary Comparison Schedule - Federal, State, and Local Grants Special Revenue Fund .................... 124 Budgetary Comparison Schedule - Housing Successor Agency Special Revenue Fund ............................ 125 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous .................................. 126 Schedule of Changes in Net Pension Liability and Related Ratios - Safety ............................................... 128 Schedule of Plan Contributions .................................................................................................................. 130 Schedule of Changes in the Total OPEB Liability and Related Ratios ..................................................... 131 Notes to Required Supplementary Information ................................................................................................. 132
CITY OF CHULA VISTA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION {Continued)
Supplementary Information:
Non-Major Governmental Funds:
Page
Number
Combining Balance Sheet ................................................................................................................... 141 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ 14 7 Budgetary Comparison Schedule by Expense Category:
General Fund ....................................................................................................................................... 153 Federal, State, and Local Grants Special Revenue Fund ..................................................................... 155 Housing Successor Agency Special Revenue Fund ............................................................................ 156 Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual:
Transportation Gas Taxes Special Revenue Fund ............................................................................... 157 Parking Meter Special Revenue Fund ................................................................................................. 158 Traffic Safety Special Revenue Fund .................................................................................................. 159 Storm Drain Special Revenue Fund .................................................................................................... 160 Town Center I Special Revenue Fund ................................................................................................. 161 Open Space Districts Special Revenue Fund ...................................................................................... 162 Housing Programs Special Revenue Fund .......................................................................................... 163 Housing Authority Special Revenue Fund .......................................................................................... 164 Transportation Sales Tax Special Revenue Fund ................................................................................ 165 Mobile Park Fee Special Revenue Fund ............................................................................................. 166 Public Education and Government Fee Special Revenue Fund .......................................................... 167 Utility Tax Settlement Special Revenue .............................................................................................. 168 National Opioid Settlement Special Revenue Fund ............................................................................ 169 Special Revenue Endowments Special Revenue Fund ........................................................................ 170 Developer Contributions Special Revenue Fund ................................................................................. 171 Donations Special Revenue Fund ........................................................................................................ 172 Development hnpact Capital Project Fund ......................................................................................... 173 Park Acquisition Development Capital Project Fund .......................................................................... 174 Residential Construction Tax Capital Project Fund ............................................................................ 175 Highway Safety Capital Project Fund ................................................................................................. 176 Industrial Development Authority Capital Project Fund ..................................................................... 177 Assessment District hnprovements Capital Projects Fund .................................................................. 178 Transportation Partnership Capital Projects Fund ............................................................................... 179 Other Transportation Program Capital Project Fund ........................................................................... 180 Capital Projects Fund .......................................................................................................................... 181 Public Financing Authority Debt Service Fund .................................................................................. 182 Municipal Financing Authority Debt Service Fund ............................................................................ 183 City Debt Service Fund ....................................................................................................................... 184 Notes Payable Debt Service Fund ....................................................................................................... 185 Lease Payable Debt Service Fund ....................................................................................................... 186 Non-Major Proprietary Funds:
Combining Statement of Net Position ................................................................................................. 188 Combining Statement of Revenues, Expenses and Changes in Net Position ...................................... 190 Combining Statement of Cash Flows .................................................................................................. 192
CITY OF CHULA VISTA
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2023
Table of Contents
FINANCIAL SECTION {Continued}
Internal Service Funds:
Page
Number
Combining Statement of Net Position ................................................................................................. 196 Combining Statement of Revenues, Expenses and Changes in Net Position ...................................... 197 Combining Statement of Cash Flows .................................................................................................. 198 Fiduciary Funds:
Combining Statement of Net Position -All Custodial Funds ............................................................. 200 Combining Statement of Changes in Fiduciary Net Position -All Custodial Funds .......................... 201
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years .................................................................................. 204 Changes in Net Position - Last Ten Fiscal Years ....................................................................................... 206 Fund Balances, Governmental Funds -Last Ten Fiscal Years .................................................................. 208 Changes in Fund Balances, Governmental Funds -Last Ten Years .......................................................... 210 Assessed Value and Estimated Actual Value of Taxable 189 .................................................................... 212 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years ......................................................... 213 Principal Property Taxpayers - Current Year and Nine Years Ago ............................................................ 214 Property Tax Levies and Collections - Last Ten Fiscal Years .................................................................... 215 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years .................................................................... 216 Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years ....................................................... 218 Direct and Over Lapping Bonded Debt ...................................................................................................... 219 Legal Debt Margin Information - Last Ten Fiscal Years ........................................................................... 220 Pledged-Revenue Coverage - Last Ten Fiscal Years .................................................................................. 222 Demographic and Economic Statistics - Last Ten Calendar Years ............................................................ 223 Principal Employers - Current Year and Nine Years Ago .......................................................................... 224 Full-time and Part-time City Employees by Function - Last Ten Fiscal years ........................................... 225 Operating Indicators by Function/Program - Last Ten Fiscal Years .......................................................... 226 Capital Asset Statistics by Function/Program - Last Ten Fiscal Years ...................................................... 227 Independent Auditors' Report on Internal Control Over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ....................... 229
CITY OF
CHULA VISTA
December 28, 2023
Honorable Mayor, Councilmembers, and Residents of City of Chula Vista City of Chula Vista
Chula Vista, CA 91910
Letter of Transmittal
Annual Co
mprehensive Financial Report, For the Fiscal Year Ended June 30, 2023 To the Honorable M
ayor, Councilmembers, and Residents of City of Chula Vista:
We are pleased to submit th e audited Annual Comprehensive Financ ial Report (ACFR) for the City of Chula Vista (City) for the fiscal year ended June 30, 2023. The City compiles and prepares the ACFR to provide interested parties with reliable info rmation concerning the financial condition and results of operati
ons for the City.
The ACFR has been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America
and the financ ial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB). The City’s management is responsible for both the accuracy of the infor
mation and the completeness and fairness of the p resentation, including all disclosures. This means that the f
inancial statements have been prepared using guidelines that would allow the user to make a meaningful comparison to the financial statements of other similar entitie s. All disclosures necessary to enable the reader to gain an understanding of the City’s activities have been included.
The basic financial
statements ar e audited by an independent cert ified public accounting firm. The purpose of the audit is to ensure that the financial statements present fa irly, in all material respects, the financial position and the results of operations of the City.
GAAP require that management provide a narrativ e introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis ( MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors.
The City is required to undergo an annual single audit in conformity w ith the provisions of the Revised Single Audit Act of 1996 and the United States Office of Management and Budget's Uniform Guidance.
I
nformation related to this single audit, including a schedule of expenditures of federal awards, along with the independent auditors’ reports on internal controls and compliance with applicable laws, can be found in a sepa
rately issued single audit report.
The ACFR for the City includes the activities of the primary government along with several "component units." A component unit is a legally separate enti ty for which the elected officials of the primary government are financially accountable. Component units, although they are legall y separate entities, are in substance part of the primary government's operations and therefore included for financial reporting purposes. The component units included within the City's financial statements are the Chula Vista i
CITY OF
CHULA VISTA Finance Department
276 Fourth Avenue, Chula Vista, CA 91910 www.chulavistaca.gov (619) 691-5051 fax (619) 585-5685 Industrial Development Authority, Chula Vista Public Financing Au thority, Chula Vista Municipal Financing Authority, Chul a Vista Housing Authorit y, Chula Vista Bayfront Facilities Financing Authority, and Bayfront Project Special Tax Financing District.
Profile of the Government
The City is located in San Diego County with its western border adjacent to San Diego Bay, 8 miles south of Do wntown San Diego and 7 miles north of the Mexican border. The City encompasses approximately 52 square miles.
The City was incorporated in 1911 and was recognized as city in the State of California by election in 1949. The City functions under a City Charter with a Council/Manager form of government. The City is governed by a four-member Council and a Mayor, w ho serves four-year overl apping terms, and, in addition to the City Attorney, is elected on a citywide basis. The Council appoints the City Manager and the City Clerk. Municipal services provided include police, fire, parks and recreation, libraries, planning & building, housing programs, street and drainage construction and maintenance, and sewer services.
Local Economy and Prospects for the Future
Chula Vista residents enjoy all the benefits of a major city along with small town friendliness, affordable housing, and near perfect weather. The most recent data availabl e from San Diego Association of Governments (SANDAG) estimates that the median household income in Chula Vista is $72,265.
The City of Chula Vista, with an estimated po pulation of 276,785, per the California Department of Finance is the second largest community in San Diego County. SANDAG projects that the City of Chula Vista will reach a population of approximately 330,255 by the year 2050. SANDAG’s 2050 Growth Forecast indicates that the South C ounty sub region will continue to host a substantial amount of the region’s projected growth over the next three decades, primarily through new development in the eastern portion of the City.
In fiscal year 2023, the City made substantial progr ess on major City project s, including the Gaylord Pacific Hotel and Convention Center on the Chula Vi sta Bayfront and the Un iversity and Innovation District in East Chula Vista. The developed Chula Vista Bayfront is expected to have an enormous impact on the City and the San Diego region, attracting vis itors from throughout the State of California and beyond. The developed bayfront will raise the City’s qua lity of life, with new parks and coastal access, and amenities for all to enjoy. The construction proj ect is anticipated to create 3,580 jobs and once open is expected to have an economic impact of half-a-billion dollars each year and produce 4,000 permanent jobs. The developed University and Innovation District aims to recruit and co-locate a unique mix of academic partners in an environment different than a traditional university campus. Instead, academic institutions, including a four-year university, will in tegrate with commercial, retail and residential functions in an urban, mixed-use setting. This will provide a collaborative learning and research environment for engaging students, faculty and corporations in the creation and application of knowledge for cross-border economic, social and cultural development. The University and Innovation District will offer a globally desirable range of academic, entrepreneurial, and urban amenities to attract the talent and investment that will sustain a world-class educational-innovation ecosystem in Chula Vista. ii
276 Fourth Avenue, Chula Vista, CA 91910 www.chulavistaca.gov (619) 691-5051 fax (619) 585-5685 Long-Term Financial Planning
The City updated the General Fund Long-Term Financial Plan (LTFP) for fiscal year 2025 through 2034 as part of its annual budget development process. The forecast analyzed revenue and expenditure estimates and assumptions over a 10-year period to assess the City’s ability to maintain current or expand service levels based on projected growth, preserve the C ity’s long-term fiscal health by aligning operating revenues and costs, and to maintain the City’s reserve funds to City reserve policy thresholds. The goal of the financial forecast is to match the availability of revenues against expenditures over time and update budgetary and financial plans accordingly. In summar y, the Long-Term Financial Plan provides an in- depth analysis of the City’s fiscal condition to aide in proactive financial decision making and to serve as a planning tool to bring a long-term perspective to the budget development process.
The forecast anticipated moderate revenue growth from fiscal year 2025 to fiscal year 2027. Starting in fiscal year 2028, revenues are anticipated to decrease due to the scheduled conclusion of a citizen approved sales tax measure. Starting in fis cal year 2029, revenues ar e anticipated to resu me moderate growth through fiscal year 2034. The forecast anticipated expenditure growth to outpace revenue growth revenues from fiscal year 2025 to fiscal year 2027 . This structural shortfall is project ed for the first three years of the ten-year LTFP period.
The Government Finance Officers Association (G FOA) recognizes the impor tance of combining the forecasting of revenues and expenditures into a si ngle financial forecast. The GFOA also recommends that a government should have a financial planning process that assesses long-term financial implications of current and proposed policies, programs, and assumptions that develop appropriate strategies to achieve its goals.
Internal Controls
The City has developed and put into place systems of internal controls over various accounting and transaction processing functions. Management of the City is responsible for establishing and maintaining the internal control structure. This structure is designed to ensure that the assets of the City are protected from loss, theft, or misuse. These controls are also in place to ensure that adequate accounting information is compiled to allow for the prep aration of financial st atements in conformity with GAAP. The internal control structure is designed to pr ovide reasonable, but not absolute, assurance that these objectives are met. The idea of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; a nd (2) the valuation of cost and bene fits requires estimates and judgments by management.
Budgetary Controls
The City currently adopts a single-year operating and capital budget. The provisions of these budgets are directly posted into the City's general ledger accoun ting system to help ensu re compliance with the appropriations made by the City Council.
Activities of the City’s Governmental Funds (general fund, special revenue funds, debt service funds, and capital project funds) are adopted in the operating budget. Budgetary c ontrol (which is the policy that actual expenditures may not exceed appropriations) is at the department and expenditure category level.
City Council approval is required for any transfer between departments or overall increase to a department.
The City Manager is authorized to transfer appropriations up to $75,000 between expenditure categories iii
276 Fourth Avenue, Chula Vista, CA 91910 www.chulavistaca.gov (619) 691-5051 fax (619) 585-5685 within a departmental budget. A ny appropriation transfers between expenditure categories within departments greater than $75,000 require City Council approval. Appropriations, other than for capital projects, remaining unspent at the end of any fiscal year will be canceled and returned to available fund balance with the exception of any appropriations encumbered as the result of a valid purchase order or as approved for a specific proj ect or purpose by the City Council or the City Manager. Appropriations for capital projects will necessarily be carried over from year to year until the project is deemed to be complete. The City Council also ad opts amounts in the operating budget for the proprietary and internal service funds to provide a level of fiscal control.
Independent Audit
Each year the City has an audit performed by an i ndependent certified public accounting firm. This year the audit was performed by the firm of Lance, Soll, and Lunghard, LLP . The auditors also conduct a "single audit" designed to meet the requirements of the federal Revised Single Audit Act of 1996 and the related U.S. Office of Management and Budget's Unif orm Guidance. The audito r’s report on the basic financial statements can be found in the financial section of this report.
The auditor’s report on internal controls over financial reporting and compliance with applicable laws and regulations can be found in a separately issued report at the conclusion of this document.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Chula Vista for its ACFR for the year ended June 30, 2022. This was the 23
rd consecutive year that the City has received this
prestigious award. In order to be awarded a Certificate of Achievem ent, a government must publish an easily readable and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is va lid for a period of one year only. We believe that our current ACFR continues to meet the Certificate of Achievement Program's requirements, and we are again submitting it to GFOA to determine its eligibility for another certificate.
Acknowledgments
The preparation of this ACFR could not have b een accomplished without the efficient and dedicated services of the entire finance staff throughout the fiscal year. We would like to thank all those individuals who assisted and contributed to the preparation of this report. Acknow ledgement must also be given to the Mayor and City Council, along w ith the City Manager, for their co ntinued interest in planning and conducting the operations of the City of Chula Vista in a responsible and progressive manner.
Respectfully submitted,
Sarah Schoen
Director of Finance/Treasurer
iv
276 Fourth Avenue, Chula Vista, CA 91910 www.chulavistaca.gov (619) 691-5051 fax (619) 585-5685 List of City Officials
As of June 30, 2023
City Council
John McCann Mayor
Carolina Chavez Councilmember District 1
Jose Preciado Councilmember District 2
Alonso Gonzalez Councilmember District 3
Andrea Cardenas Councilmember District 4
Administration
Maria Kachadoorian City Manager
Tiffany Allen Assistant City Manager
Eric Crockett Deputy City Manager
(Vacant) City
Attorney
Kerry K. Bigelow City Clerk
Department Heads
John Skeel Director of Animal Services
Tracy Lamb
Director of Community Services
Laura Black Director of Development Services
William Valle Director of Engineering/City Engineer
Harry Muns Fire Chief
Sarah Schoen Director of Finance/Treasurer
Stacey Kurz Director of Housing & Homeless Services
Courtney Chase Director of Human Resources & Risk Management Jose Cisneros Director of Information Technology Services Roxana Kennedy Chief of Police
Matthew Little Director of Public Works
v
Organizational Chart
As of June 30, 2023
Citizens of Chula Vista
Mayor
City Council
Citizen Advisory
Commissions
City Attorney Citizen Advisory
Boards
Development
Services
Fire Police Deputy City
Manager
Assistant City
Manager
City Clerk City Manager
Engineering &
Capital Projects
Parks &
Recreation
Community
Services
Public Works
Animal Services
Information
Technology
Services
Economic
Development
Housing &
Homeless
Services
Human Resources
& Risk
Management
Finance
Library
vi
CllYOF
CHUIAVISTA
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Chula Vista
California
For its
Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
vii
e
CITY OF
CHULA VISTA
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
To the Honorable Mayor and Members of the City Council
City of Chula
Vista, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the financial st atements referred to above pres ent fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, an d the respective changes in financial position, and cash flows thereof, for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
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. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial State ments section of our report. We are required to be independent of the City and to meet our other ethical responsib ilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matter
Change in Accounting Principle
As described in Note 1 to the financial statements, in 2023, the City adopted new accounting guidance, GASB Statement No. 96, Subscription Based Information Technology Arrangements . Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including an y currently known information that may raise substantial doubt shortly thereafter.
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To the Honorable Mayor and Members of the City Council
City of Chula Vista, California
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to is sue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted a uditing standards and Government Auditing Standards will always detect a material m isstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted au diting standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skept icism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to th ose risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of inter nal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, and the required pension and other postemployment benefits schedules, a s listed on the table of contents, presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 c ertain limited procedures to the required supplementary information in acc ordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of m anagement about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 2 Ls~ .... •••• ••
To the Honorable Mayor and Members of the City Council
City of Chula Vista, California
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combini ng and individual fund financial statements and schedules (supplementary information) are presented for purpose s of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements.
The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financia l statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2023, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreement s and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit p erformed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
Brea, California
December 28, 2023
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4 CITY OF
CHULA VISTA
CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
The City of Chula Vista (City) offers readers this na rrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2023. It should be read in conjunction with the accompanying letter of transmittal beginning on page i and the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
The following outlines financial highlights for the year:
1. At June 30, 2023 the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $1,873.8 million (net position). Total ne t position consisted of net investment in capital assets of $1,554.2 million, restricted net position of $287.4 million, and unrestricted net position of $32.2 million.
2. Total unrestricted net position for governmental activities has decreased by $22.6 million from the prior fiscal year, a change of 23.2%, whereas unrestricted net position for business-type activities was $16.3 million higher than the previous year, a 12.0% increase.
3. The City’s total net position increased by $135.7 million or 7.8% in fiscal year 2023. The net position for governmental activities increased by a net $1 18.1 million or 9.2%, while the net position for business-type activities increased by $17.6 million or 3.8%.
4. The City’s governmental funds reported combined ending fund balances of $409.1 million, an increase of $49.0 million, or 13.6%.
5. Total citywide liabilities increased by $35.4 million or 5.3%. Liabilities for governmental activities increased by $28.6 million or 4.7% and business-type activities increased by $6.8 million or 13.3%.
6. The City’s total long-term debt obligations for governmental activities had a net decrease of $21.4 million or 4.6%.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis provided here is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial st atements are comprised of three components: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements.
This report also contains required supplementary information (RSI) as well as other supplemental financial information intended to furnish additional detail to support the basic financial statements themselves.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private-sector business. They are comprised of the Statement of Net Position and the Statement of Activities.
The Statement of Net Position presents information on all the City ’s assets and deferred outflows, along with liabilities and deferred inflows, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is 5 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
improving or deteriorating. This statement combines and consolidates governmental funds’ current financial resources with capital assets and long-term obligations.
The Statement of Activities presents information showing how the government’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of th e related cash flows. Thus, revenues and expenses are reported in this statement, for some items, that will onl y result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements have separat e sections for three different types of activities.
These three types of activities are:
Governmental Activities – The activities in this section are mos tly supported by taxes and charges for services. The governmental activities of the City include General Government, Public Safety, Community Development, Public Works, Parks and Recreation, and Library.
Business-Type Activities – These functions normally are intended to recover all or a significant portion of their costs through user fees and charges to external customers for goods and services. The business-type activities of the City include Sewer Fund, Sewer De velopment Impact Fees, Development Services Fund, Chula Vista Elite Athlete Training Center, Bayfront Trolley Station, Transit Fund, Chula Vista Muni Golf Course, Transport Enterprise, and Living Coast Discovery Center.
Discretely Presented Component Units – The City of Chula Vista has no discretely presented component units to report upon.
Fund Financial Statements and Major Component Unit Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City , like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds of the City can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
The fund financial statements provide detailed information about each of the City’s most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement No. 34 and replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all N on-Major Funds summarized and presented in a single column.
Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government- wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
Such information may be useful in evaluating a government’s near-term financial capacity.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide fina ncial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate th is comparison between governmental funds and 6 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
governmental activities. These reconciliations are presented on the pages immediately following each governmental fund financial statement.
As of fiscal year 2023, the City maintains numerous governmental funds within the adopted budget and its financial system. However, for financial reporting, the funds are summarized as follows for presentation purposes:
Each major fund is presented separately in the governme ntal fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance. Information for the City’s remaining governmental funds is combined into a single, aggregated “Other Governmental Funds” column. Individual fund data for each of these non-major governmental funds is provided in the supplementary information portion of the report.
Proprietary Funds – The City maintains two different types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its Sewer, Sewer Development Impact Fees, Development Services, Chula Vista Elite Athlete Training Center, Bayfront Trolley Station, Transit, Chula Vista Muni Golf Course, Transport Enterprise, and Living Coast Discovery Center. Internal service funds are used to accumulate and allocate costs internally among the City’s various functions. The City uses internal service funds to account for its fleet management, technology replacement, and workers compensation program. Because these services predominantly benefit governmental rather than business-type functi ons, they have been included within governmental activities in the governmental-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. There is no reconciliation needed between the government-wide financial statements for business-type activities and the proprietary fund financial statements.
Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City’s own programs.
Fund Category Major Funds
Non-Major
Funds Total
General Fund 1 0 1
Special Revenue 2 16 18
Capital Project 1 9 10
Debt Service 0 5 5
Permanent 0 0 0
Total Pr esented 4 30 34
7 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Notes to Basic Financial Statements
The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City ’s budgetary results for the general fund and all major special revenue funds with an appropriated b udget. Required supplementary information also includes trend data for the City’s pension plans and other postemployment benefits.
Other supplementary information, including combin ing statements for nonmajor governmental funds, nonmajor proprietary funds, internal service funds , and all custodial funds, are presented immediately following the required supplementary information. Budgetary comparison schedules are also included in this section for all nonmajor governmental funds with an appropriated budget.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
As noted earli
er, net position may serve over time as a useful indicator of a government’s financial position.
As of June 30, 2023, the City’s total net position (governmental and business-type activities) was $1,873.8 million, a net increase of $135.7 million or 7.8% from the prior fiscal year. The City’s governmental activities increased by $118.1 million and business-type activities increased by $17.6 million. The following Summary of Net Position table shows the components that make up the City’s net position at June 30, 2023 and 2022.
Summary of Net Position
Fiscal Year Ended June 30
2023 2022 2023 2022 2023 2022
Current Assets 472,776,502$ 491,605,672$ 195,675,405$ 183,376,221$ 668,451,907$ 674,981,893$ Non-Current Assets 98,337,081 178,621,179 (2,348,567) 12,476,689 95,988,514 191,097,868 Capital Assets 1,362,769,383 1,281,546,729 328,791,214 324,363,653 1,691,560,597 1,605,910,382 Total Assets 1,933,882,966 1,951,773,580 522,118,052 520,216,563 2,456,001,018 2,471,990,143 Deferred outflow of resources 121,590,525 27,287,658 15,421,977 1,998,246 137,012,502 29,285,904 Total Deferred Outflows 121,590,525 27,287,658 15,421,977 1,998,246 137,012,502 29,285,904 Current Liabilities 110,808,267 114,543,305 19,171,185 17,776,203 129,979,452 132,319,508 Non-Current Liabilities 531,667,421 499,340,761 38,607,138 33,218,169 570,274,559 532,558,930 Total Liabilities 642,475,688 613,884,066 57,778,323 50,994,372 700,254,011 664,878,438 Deferred inflows of resources 17,169,407 104,682,399 1,799,144 10,966,035 18,968,551 115,648,434 Total Deferred Inflows 17,169,407 104,682,399 1,799,144 10,966,035 18,968,551 115,648,434 Net Position
Net Investment in Capital Assets 1,228,680,322 1,139,225,615 325,567,886 324,179,036 1,554,248,208 1,463,404,651 Restricted 287,363,139 218,852,340 - - 287,363,139 218,852,340 Unrestricted (120,215,065) (97,583,182) 152,394,676 136,075,366 32,179,611 38,492,184 T
otal Net Position 1,395,828,396$ 1,260,494,773$ 477,962,562$ 460,254,402$ 1,873,790,958$ 1,720,749,175$ Governmental Activities Business-Type Activities Total
8 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
As the Summary of Net Position table illustrates, fiscal year 2023 total amount of $1,554.2 million is reported as net investment in capital assets, which re presents capital assets (e.g., land, streets, sewers, buildings, improvements, equipment, lease asset, subscription assets, and work in progress), less any related debt used to acquire those capital assets that are still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from ot her sources, since the capital assets themselves cannot be used to liquidate this debt.
A portion of the City’s fiscal year 2023 net position is restricted, $287.4 million and represents resources that are subject to external restrictions on how th ey may be used. Restricted net position increased $68.5 million from the prior year and is mainly related to capital projects and pension.
Unrestricted net position represents the portion of net pos ition that can be used to finance daily operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Fiscal year 2023, unrestricted net position of $32.2 milli on is comprised of negative $120.2 million for governmental activities offset by positive $152.4 milli on for business-type activities. Unrestricted net position decreased by $6.3 million from the prior fiscal year.
At the end of the fiscal year, the City was able to report positive balances for all categories of net position for its business-type activities, however, both the total primary government as well as the governmental activities columns show a negative unrestricted net position 9 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Changes in Net Position
The statement of net position provides a snapshot at a given point in time of the assets, liabilities, and deferred inflows and outflows of resources of the City. The other citywide statement provided is the Statement of Activities . This statement provides the readers with information regarding the revenues, expenses, and changes in net position over the fiscal year. Generally, all changes to the City’s net position from one fiscal year to the next flow through the Statement of Activities.
Summary of Changes in Net Position
Fiscal Year Ended June 30
Further analysis is provided within the governmental and business-type activities in the following sections. 2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for Services 54,306,851$ 54,088,129$ 80,687,370$ 84,025,377$ 134,994,221$ 138,113,506$ Operating Grants & Contributions 54,392,158 47,300,700 - - 54,392,158 47,300,700 Capital Grants & Contributions 62,001,862 58,796,673 - - 62,001,862 58,796,673 General Revenues:
Property Taxes 75,655,629 69,565,097 - - 75,655,629 69,565,097 Transient Occupancy Taxes 8,830,406 7,418,924 - - 8,830,406 7,418,924 Sales Taxes 103,350,833 102,428,825 - - 103,350,833 102,428,825 Franchise Taxes 14,432,110 13,852,030 - - 14,432,110 13,852,030 Business License Taxes 2,017,470 1,979,843 - - 2,017,470 1,979,843 Utility User Taxes 3,643,465 3,731,224 - - 3,643,465 3,731,224 Residential Construction Taxes 166,875 12,481,058 - - 166,875 12,481,058 Property Transfer Taxes 1,341,179 2,208,125 - - 1,341,179 2,208,125 Other Taxes 16,259,368 - - - 16,259,368 - Investment Earnings (Losses) 9,523,650 (6,855,109) 2,319,648 (3,650,561) 11,843,298 (10,505,670) Miscellaneous 11,184,009 21,755,785 9,730,345 16,545,269 20,914,354 38,301,054 Gain (Loss) Disposal of Capital Assets (296,411) 192,543 70,150 47,609 (226,261) 240,152 Total Revenues 416,809,454 388,943,847 92,807,513 96,967,694 509,616,967 485,911,541 Expenses:
General Government 43,199,147 57,993,429 - - 43,199,147 57,993,429 Public Safety 130,847,798 111,173,472 - - 130,847,798 111,173,472 Community Development 25,674,814 45,701,258 - - 25,674,814 45,701,258 Public Works 81,289,367 58,402,021 - - 81,289,367 58,402,021 Parks and Recreation 5,783,062 13,542,362 - - 5,783,062 13,542,362 Library 3,749,853 2,954,806 - - 3,749,853 2,954,806 Interest on Long-Term Debt 13,400,138 15,631,745 - - 13,400,138 15,631,745 Sewer Fund - - 40,934,038 33,398,914 40,934,038 33,398,914 Sewer DIFs - - 387,959 305,619 387,959 305,619 Development Services Fund - - 10,155,101 8,233,072 10,155,101 8,233,072 CV Elite Athlete Training Ctr - - 1,219,972 575,339 1,219,972 575,339 Bayfront Trolley Station - - 11 19 11 19 Transit - - 8,483 8,500 8,483 8,500 Chula vista Muni Golf course - - 3,173,834 2,982,489 3,173,834 2,982,489 Transport Fund - - 11,191,576 12,006,347 11,191,576 12,006,347 Living Coast Discovery Ctr - - 172,989 118,750 172,989 118,750 Total Expenses 303,944,179 305,399,093 67,243,963 57,629,049 371,188,142 363,028,142 Increase/(Decrease) in Net Position
Before Transfers and Special Item 112,865,275 83,544,754 25,563,550 39,338,645 138,428,825 122,883,399 Transfers 7,965,818 7,527,863 (7,965,818) (7,527,863) - - Special Item (2,765,896) - - - (2,765,896) - Change in Net Position 118,065,197 91,072,617 17,597,732 31,810,782 135,662,929 122,883,399 Net Position, Beginning of Year 1,260,494,773 1,165,779,357 460,254,402 424,978,653 1,720,749,175 1,590,758,010 Restatements 17,268,426 3,642,799 110,428 3,464,967 17,378,854 7,107,766 Net Position, Beginning of Year - Restated 1,277,763,199 1,169,422,156 460,364,830 428,443,620 1,738,128,029 1,597,865,776 Net Position, End of Year 1,395,828,396$ 1,260,494,773$ 477,962,562$ 460,254,402$ 1,873,790,958$ 1,720,749,175$ Governmental Activities Business-Type Activities Total
10 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Governmental Activities
The City’s governmental activities net position increased by $118.1 million or 9.2%, which partially offsets the City’s negative unrestricted net position due to net pension and OPEB related liabilities. The chart below compares the cost of services by function for the City’s governmental activities along with the program revenues used to cover those costs.
Total program revenues from governmental activities were $170.7 million in fiscal year 2023, an increase of $10.5 million or 6.6% from the previous year. Program revenues are derived directly from the program itself or from parties outside the reporting government’s taxpayers or citizenry. They reduce the net cost of the function to be financed from the City’s general revenues. A discussion of the different Program Revenue categories and its components follows.
Charges for Services for governmental activities had a net increase of $0.2 million or 0.4% from the previous fiscal year mainly due to increased chargeable activities in commun ity development of $3.8 million and public safety of $1.2 million, and a decrease in chargeable activities in general government of $4.8 million. Changes by function in comparison to the prior fiscal year are summarized in the table below.
Charges for Services
Fiscal Year Ended June 30
Function 2023 2022
Increase
(Decrease)
General Government 1,943,828$ 6,763,379$ (4,819,551)$ Public Safety 8,933,510 7,752,570 1,180,940
Community Development 9,647,486 5,836,312 3,811,174 Public Works 30,697,778 30,823,899 (126,121)
Parks and Recreation 2,479,537 2,101,823 377,714
Library 604,712 810,146 (205,434)
Total Charges for Services 54,306,851$ 54,088,129 $ 218,722 $ 11 ~
= 0
§
~
■ Expe nses
$ 140
$ 120
$ 100
$80
$60
$40
$20
$-
General
Govennnent
$43,199,147
■ Total Program Revenues $8,510,992
Expenses and Program Revenues
Governmental Activities
Public Safety
$130,847,798
24,671,781
Conllllllllity
Development
$25,674,814
45,666.605
Public Wo1ks
$8 1,289,367
71 ,663,385
Parks and
Recreation
$5,783,062
2,479,537
Library
$3,749,853
17,708.57 1
Intere st on
Long-Tenn
Debt
$13,400,138
CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Operating Grants and Contributions for governmental activities had a net increase of $7.1 million from the previous fiscal year mainly due to increased state grant contributions to the Millenia: Cinematic Arts Academic Center and Library project and the overall increase of federal contributions to various public safety grants. Changes by function in comparison to the prior fiscal year are summarized in the table below.
Operating Grants and Contributions
Fiscal Year Ended June 30
Capital Grants and Contributions for governmental activities had a net increase of $3.2 million from the previous fiscal year primarily due to an increase in Public works of $4.2 million. Changes by function in comparison to the prior fiscal year are summarized in the table below.
Capital Grants and Contribution
Fiscal Year Ended June 30
General Revenues are all other revenues not categorized as program revenues, such as property taxes, sales taxes and investment earnings. Total general revenues from governmental activities were $246.4 million in fiscal year 2023. The largest source of general revenues received during the year for governmental activities was taxes for a total of $225.7 million, which incl uded amounts from Property Taxes for $75.7 million, Sales Taxes for $103.4 million, and Franchise
Taxes for $14.4 million. All taxes combined increased a total of $12.0 million in comparison to the prior fiscal year.
The City’s General Revenues increased overall by $17.8 million when compared to the prior fiscal year.
While most of the revenue categories increased moderately from last year, there were significant increases in the collection of property taxes. There was a reclassification from residential construction tax to other Function 2023 2022
Increase
(Decrease)
General Government 6,567,164$ 3,846,872$ 2,720,292$ Public Safety 15,738,271 7,675,911 8,062,360 Community Development 13,016,568 35,697,807 (22,681,239) Public Works 1,966,296 - 1,966,296
L
ibrary 17,103,859 80,110 17,023,749
Total Operating Grants
and Contributions 54,392,158$ 47,300,700 $ 7,091,458 $ Function 2023 2022
Increase
(Decrease)
General Government -$ 1,158,711$ (1,158,711)$
Public Safety - 47,226 (47,226)
Community Development 23,002,551 21,153,573 1,848,978 Public Works 38,999,311 34,833,053 4,166,258
Library - 1,604,110 (
1,604,110)
Total Capital Grants
and Contributions 62,001,862$ 58,796,673 $ 3,205,189 $ 12 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
taxes that caused a significant decrease in residentia l construction tax and a significant increase in other taxes. There were significant investment gains of $16.4 million in fiscal year 2023 as well as increased property tax receipts of $6.1 million. The significant changes in comparison to the prior fiscal year are identified in the table below.
General Revenues
Fiscal Year Ended June 30
Revenue Type 2023 2022
Increase
(Decr ea se)
Property Taxes 75,655,629$ 69,565,097$ 6,090,532$ Transient Occupancy Taxes 8,830,406 7,418,924 1,411,482 Sales Taxes 103,350,833 102,428,825 922,008 Franchise Taxes 14,432,110 13,852,030 580,080 Business License Taxes 2,017,470 1,979,843 37,627 U
tility Users Tax 3,643,465 3,731,224 (87,759) Residential Construction Taxes 166,875 12,481,058 (12,314,183) Other Taxes 16,259,368 -
16,259,368
P
roperty Transfer Tax 1,341,179 2,208,125 (866,946) I
nvestment Earnings (Losses) 9,523,650 (6,855,109) 16,378,759 M
iscellaneous 11,184,009 21,755,785 (10,571,776) T
otal General Revenues 246,404,994$ 228,565,802$ 17,839,192$ 13 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Total governmental activity type expenses were $304.0 million in fiscal year 2023. The largest expenses were incurred for General Government, Public Safety, Community Development, and Public Works.
These four activities combined account for 93.0% of all general activity expenses. These expenses do not include capital outlays, which are reflected in the City’s capital assets.
Business-Type Activities
Net position for business-type activities was $478.0 million, an increase of $17.6 million or 3.8% from the prior fiscal year.
Total revenues for the business-type activities were $92.8 million, a decrease of $4.2 million or 4.3% from the prior fiscal year. Total program revenues for business-type activities were $80.7 million, a decrease of $3.3 million or 4.0% from prior fiscal year. The program revenues composed primarily of sewer service charges for $49.1 million, development fees for $9.3 million, golf course fees for $3.2 million, and transport enterprise fees for $18.2 million.
Total expenses for the business-type activities were $67.2 million, an increase of $9.6 million or 16.7% from the prior fiscal year. The total expenses were mainly related to sewer activities for $40.9 million, development services activities for $10.2 million, golf course activities for $3.2 million, and transport enterprise activities for $11.2 million. The net increase of $9.6 million is primarily related to increases in sewer activities of $7.5 million and development servi ces activities of $2.0 million, with a decrease in transport activities of $0.8 million.
14 Governmental Expenses by Function
Community ______ .,,.
Development
9%
Public Safety
43%
Parks and
Recreation
2%
____ Library
1%
Interest on Long
Tenn Debt
4%
General Government
14%
CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
FUND LEVEL FINANCIAL ANALYSIS
As noted earlier, the City uses fund accounting to ens
ure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds
The City uses governmental fund accounting to ensure compliance with budgetary allocations and to maintain control over resources that are legally, or otherwise, restricted for specific purposes. The following is a discussion of the significant changes for the C ity’s major funds as shown on the balance sheet for governmental funds in the basic financial statements.
General Fund – The General Fund is used to account for the ge neral operations of the City. It is used to account for all financial resources, except those required to be accounted for in another fund. The General Fund is always reported as a major fund. For fiscal year 2023, the General Fund reported $247.0 million in revenues and $215.3 million in expenditures. This resulted in revenues over expenditures in the amount of $31.8 million. After accounting for net other financing uses of $19.7 million and the special item of $2.8 million related to the successor agency, the fund bala nce for the General Fund increased by $9.3 million for the fiscal year.
Fiscal year 2023 total revenues had a net increase of $17.1 million or 7.4% from the prior fiscal year primarily due to increases in taxes of $11.4 million and uses for money and property of $6.7 million along with decrease in intergovernmental of $.9 million.
Fiscal year 2023 expenditures increased by $10.5 million or 5.1% in comparison to the prior fiscal year with increases in public works of $9.7 million, public safety of $7.8 million, and community development of $3.8 million, along with decreases in parks and recreation of $6.8 million a nd general government of $6.6 million.
Total fund balance as of June 30, 2023, was $149.9 m illion, composed of $172.8 million in assets offset with $15.5 million in liabilities and $7.5 million in deferred inflows of resources related to unavailable revenues and leases. Total fund balance included $5.3 million of nonspendable amounts, which represents the portion of fund balance that is not available for appropriation. Restricted fund balance totaled $25.7 million, which is restricted for pension related expenditures. Committed fund balance totaled $18.3 million, including $9.7 million committed fo r economic contingency, $4.2 million committed for a catastrophic event contingency and $4.3 for the Measure A economic contingency reserve. This portion of fund balance includes amounts that can only be u sed for specific purposes pursuant to constraints imposed by formal action of the City Council and remains binding unless removed in the same manner. Assigned fund balance, totaling $75.7 million, represents the portion of fund balance that includes amounts that are constrained by the government’s intent to be used for specific purposes, but that are neither restricted nor committed. The City Council has delegated its authority to assign fund ba lance amounts to the City’s Director of Finance.
The final component of total fund balance is unassigned fund balance.
Unassigned fund balance totaling $24.9 million, represents the portion of fund balance that is available for appropriation for any purpose.
Federal, State, and Local Grants Fund – The Federal, State and Local Grants fund is used to account for various grants, such as: Supplemental Law Enforcement Services, California Library Services Act, Public Library Act, asset seizure, local law enforcement block grants, California Recreation grants, Public Safety grants, federal library grants, waste management and recycling, energy conservation, parks and recreation, 15 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
social service grants, Gayle McCandliss memorial cultural arts, federal assistance, CDBG program income projects, HOME project, Community Development Block grants and American Rescue Plan Act funding.
The Federal, State and Local Grants fund had tota l revenues of $54.7 million and expenditures of $35.4 million, resulting in revenues over expenditures in the amount of $19.3 million. Revenues were $4.2 million or 8.3% more in comparison to the prior fiscal year mainly due to the increased activities of various federal public safety grants and increased activities in the Mi llenia: Cinematic Arts Academic Center and Library project. The Federal, State and Local Grants fund balance increased by $16.2 million for the fiscal year, after accounting for net other financing uses of $3.1 million. Total fund balance as of June 30, 2023, was $19.8 million, composed primarily of restricted fund balance, except for the amount classified as nonspendable related to prepaid costs.
Housing Successor Agency Fund – The California legislature voted to end redevelopment agencies on January 31, 2012. This fund was created on February 1, 2012, as a result of the dissolution process and was formerly known as the Low- and Moderate-Income Housing Fund. The City opted to become the Successor Agency to the Redevelopment Agency and to the Low- and Moderate-Housing Successor.
For fiscal year 2023, this fund had total revenues of $0.5 million composed primarily of unrealized investment gains, property rentals and loan repaym ents from affordable housing projects. Total fund balance as of June 30, 2023, was $13.6 million, an increase of $0.5 million from the prior fiscal year. Fund balance is composed of restricted fund balance.
Development Impact Fee Fund – This fund was established as a depository for various development impact fees (DIFs). The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth.
Revenues for this fund totaled $23.7 million attributable to building permit fees for new development.
Expenditures totaled $10. 4 million, of which, $6.8 million were capital expenditures on Recreational Facilities, Library for Eastern Territory, Traffic Signal and Transportation Development projects.
Total fund balance for the year increased by $12.0 million or 16.6% from prior fiscal year. At June 30, 2023, fund balance in the amount of $84.3 million was presented as restricted fund balance for various capital projects related to public facilities due to new development.
16 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Proprietary Funds
The City’s Sewer Fund is reported as a major fund on the Statement of Net Position for Proprietary Fu nds in the basic financial statements.
Sewer Fund – The Sewer fund is used to acco unt for all activities related to pro viding sewer services to the residents of Chula Vista. Resources for the fund come primarily from sewer service charges paid for by users of the system. For fiscal year 2023, operating revenues totaled $55.4 million, an increase of $0.5 million or 0.9% from the prior fiscal year. Part of that increase included $6.0 million donated assets from developers. Operating expenses totaled $40.7 million for th e fiscal year, with th e most sign ificant cost related to the wastewater treatment by the City of San Diego in the amount of $26.8 million. In addition, non-operating revenues netted to $2. 1 million, which included unrealized investment revenue of $2.3 million.
After acco unting for all revenues and expenses, both operating and non-operating, transfers, and restatements, the net position of the fund increased by $13.2 million from prior fiscal year, totaling $293.9 million as of June 30, 2023. Of total net position, $ 129.4 million represents the City’s net investment in sewer system infrastructures, such as pump stations, sewer lines and other related equipment, therefore, not available to fun d the day-to-day operations of the sewer system. Current assets totaled $157.2 million , comprised of $145.5 million in cash and investments, an d $11.7 million in receivables. Total liabilities at the end of the fiscal year were $14.4 million, of which $1.9 million were considered current liabilities, with the remainder non-current liabilities primarily related to other post-employmen t benefits (OPEB) and the Pension Obligation Bonds. The fund had $10.0 million of bo nded debt. In addition, the fund reported deferred ou tflows of resources in the amount of $4.0 million an d d eferred inflows of resources for $0.5 million related to pension and OPEB costs.
Sewer Development Impact Fee Fund – This fund was established as a depository for sewer development impact fees. The fees are levied against all new develo pment in th e City in order to pay for the construction or improvement of public sewer facilities as a result of City growth.
Operating revenues totaled $0.8 million for the fiscal year. Op erating expenses totaled $16,23 0 for the year, comprised mainly of d epreciation expense and administrative costs. In addition, non- operating expenses totaled $0.3 million, which were the interest expense and unrealized investment gains for the year.
Net position of the fund was a n egative $12.7 million primarily due to an interfund loan and was comprised of $5.4 million in assets and $18.2 million in liabilities (including the interfund loan fro m the Sewer Fund). Please reference Note 6 of the basic finan cial statements for additional information on the advances from other funds.
Development Services Fund – This fund accounts for revenues and expenses related to the processing of development plans and permits. The fund is comprised o f three divisio ns, Plannin g, Building, and Engineering, which provide direct services to property owners, developers, and the City as required fo r the entitlement and/or improvement of property. The services provided encompass most development activities, including land use entitlements; pub lic infrastructure, open space, and landscape planning; public infrastructure construction, grading and building permits.
Operating revenues totaled $12.0 million and were primarily comprised of permits and fees. Op erating expenses totaled $9.8 million for the year, mo stly comprised of personnel service costs. Total non-operating expenses was $0.3 million comprised of interest expense and unrealized investment losses.
The sum of all transfers reflects funding to and from other funds for subsidies and overhead expenses. 17 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Net position
of the fund was negative $12.1 million for the fiscal year. Current and noncurrent assets totaled $17.9 million for the fiscal year. Current liabilities were $15.4 million and noncurrent liabilities were $21.0 million primarily consisting of liabilitie s related to bonds, notes, and leases. In addition, the fund also reported deferred outflows of resources in the amount of $7.1 million and deferred inflows of resources for $0.8 million related to pensions and OPEB.
Chula Vista Elite Athlete Training Center (CVEATC) Fund – This fund was established to account for the CVEATC’s activities in partnership with Elite Athlete Services, the CVEATC operator.
Net position decreased by $0.3 million from the prior year mainly due to depreciation expense and administrative costs. This fund’s primary asset consists of the land and facilities held for the Chula Vista Elite Athlete Training Center in the net amount of $1 95.3 million. Current liabilities totaled $0.5 million.
Net position of the fund was $194.9 million primarily due to the facility contribution from the US Olympic Committee in January 2017.
18 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
GENERAL FUND BUDGETARY HIGHLIGHTS
The final amended general fund budget totaled
$316.9 million in cluding $37.0 million in budget
amendments to the originally adopted budget, $23.5 million carried forward for capital improvements and encumbrances of $22.4 million, which will fund contractual obligations and outstanding purchase orders.
The budget amendments occurred because of: staffing and organizational changes within various City departments; start of the Chula Vista Bayfront project; American Rescue Plan Act spending plan changes; modification of spending specific to Measure A, the City’s half cent sales tax which funds public safety staffing, and Measure P, the City’s half cent sales tax which funds infrastructure repair or replacement over the next several years; federal grant and other grant appropriations; adoption of labor agreements; transfers out to other funds; and new supplies and services appropriations approved subsequent to budget adoption.
The General Fund’s budget amendments of $37.0 million are summarized as follows:
Resolution Budget Amendments Expenditure
2022-164 Appropriation for Small Business Grants 250,000$ 2022-170 Personnel Appropriations (Various) 1,093,850
2022-189 Personnel Appropriations (Various) 1,259,576
2022-190 Charter Update Appropriations (City Clerk) 195,000 2022-203 Appropriation for Harborside Park Closure 350,000 2022-216 Personnel Appropriations (Police) 156,548
2022-226 Personnel Appropriations (Measure A) 115,953
2022-247 Personnel Appropriations (Various) 780,308
2022-249 First Quarter Budget Adjustments 6,839,670
2022-257 Measure P & ARPA Transfer (Finance) 3,252,384
2022-272 Personnel Appropriations (Various) 235,420
2022-284 Personnel Appropriations (Various) 8,024
2023-015 Measure P Appropriation (Engineering) 550,000
2023-022 Second Quarter Budget Adjustments 13,185,122
2023-023 TOT Revenud/Contract Appropriation (City Attorney) 140,000 2023-025 Donation & Grant Appropriation (Parks & Recrecation) 17,750 2023-029 Measure A Appropriations (Police) 2,343,356
2023-043 Measure P Appropriation (Engineering) 250,000
2023-061 Third Quarter Budget Adjustments 620,278
2023-083 Vehicle Appropriation (Animal Care Facility) 83,000 2023-157 FY2023 Year-End Budget Adjustments 5,252,257
TOTAL GENERAL FUND BUDGET AMENDMENTS $36,978,496
19 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Revenues – Overall budgeted revenues were $283.4 million, and actuals we re $264.7 million resulting in revenues were below budget by $18.8 million. The significant General Fund revenue variances were the following:
The Taxes revenue category exceeded budget by a total of $1.5 million. This is primarily due to Sales Tax revenues exceeding budge t by $2.5 million, as a result of population growth, increased consumer co
nfidence, and online sales. The City is receiving more revenues due to the Supreme Court decision in the South Dakota vs Wayfair, Inc. case, and recent legislative changes by the California State incre
asing the collection of sales and use taxes from out-of-state businesses doing business with
in the state. Cannabis Excise Tax were below budget by a total of $1.0 million, as a result of delays in the opening of cannabis businesses. Intergovernmental revenues we
re below budget by a total of $0.5 million. Reimbursement from Other Agencies for the City Jail was below budget by $0.7 million due to the termination of the U.S. Marshal
ls Service contract for intergovernmental detention services. Use of Money and Property revenues exceeded budget by a total of $3.9 million, primarily due to recognition of investment earnings exceeded budget by $2.4 million, rental revenues exceed budget by $1.2 million, and a
$1.6 million decrease in the fair value of investments. Miscellaneou
s revenues were below budget by a total of $0.3 million, primarily due to a decrease in Development Fees.
Transfers In were $24.6 million
below budget, largely due to reduced American Rescue Plan Act Fund
project expenditures for Non-Departmental, Police and Fire Departments.
Expenditures –
Overall budgeted expenditures were $316.9 million, and actuals were $264.6 million, resulting in under budget expenditur es of $52.3 million. The significant General Fund expenditure variances were the following:
Capital outlay expenditures were below budget by a total of $26.2 million, which is due to the timing of capital outlay expenditures for multi-year capital projects. Non-capital General Fund expendit
ures were below budget by a total of $13.0 million. The Police Department was under budget by $0.7 million,
Fire Department was under budget by $1.6 million,
Public Works
Department was under budget by $ 1.0 million, and the Finance Department was under budget
by $2.7 million, all primarily from reduced expenditures in the personnel, and supplies and
services categories. The Economic Development Department was under budget by $2.5 million
due to less than anticipated expenditures for projects under the American Rescue Plan Act Spending Plan.
Transfers Out were below
budget by a total of $13.2 million. Modifications to scheduled transfers out for t
he 2021 Pension Obligation Bonds, Section 115 Trust and Bayfront Project allocations were
made during the fiscal year. Additionally, staff time reimbursements which are processed via transfers
are based on actual costs and may vary.
20 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets f
or its governmental and business-type activities as of June 30, 2023, amounts to $1,691.6 million, net of accumulated depreciation of $799.3 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, right-to-use leased assets, and construction in progress. Infrastructure asset s are items that are normally immovable and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems, lighting systems and similar items. The total change to th e City’s investment in capital assets for the current fiscal year was an increase of $85.7 million, net of accumulated depreciati on. Additional information on the City’s capital assets can be found in Note 7 of the basic financial statements.
Debt Administration
Long Term Debt - At June 30, 2023, the City had $474.7 million in debt outst anding compared to $497.6 million last year, a net decrease of $22.9 million. This was primarily due to bond payable deletions in the amount of $13.6 million, a $8.8 million deletion for pension related debt, and capital lease/finance purchase addition in the amount of $4.0 million. Most of the debt is in the form of pension obligation bonds of $334.7 million, lease revenue bonds of $55.3 million, and cer tificates of participation of $59.0 million. The remainder of the outstanding long-term debt is in the form of CDBG Section 108 loan, unamortized bond premium, notes payable, and financed purchases.
As of June 30, 2021, the City received an AA long-term rating for its 2021 Ta xable Pension Obligation Bonds (POBs). At the same time, it was affirmed that the City maintains its AA- rating by Standard & Poor's for the Chula Vista Public Financing Author ity Certificates of Participation and Chula Vista Municipal Financing Authority Lease Revenue Bonds , which represents a stable outlook. Additional information on the City's long-term debt obligations can be found in note 8 of the basic financial statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Property Ass
essed Valuation and Tax
According to the County of San Diego Assessors’ Office, the City’s total property assessed valuation (both secured and unsecured) for 2023 was $38,066.5 million. This was an increase of $2,866.2 million, or 8.1% over the 2022 property assessed valuation. It should be noted that assessed value was set as of January 1 each year. Actual current secured property tax revenues for fiscal year 2023 totaled $41.2 million, which is $3.3 million more than collected in the prior year.
21 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
Building Activity
The valuation of all building and related permits totaled $444.2 million for fiscal year 2023. This is approximately 9.8% less than the valuation of $492.8 million for these permit categories in the prior fiscal year.
Building Permit Valuation
Fiscal Year Ended June 30
The issuance of building permits is a result of several different factors, the largest of which are market based. Permits are not pulled unless there is sufficient demand in the market, or the builders are able to sell the homes for a sufficient price to cover costs and a profit margin. The other factor impacting the issuance of building permits is the development timeline, and whether the de velopers have all the necessary approvals in place to move forward with construction.
Local Economy
According to the Beacon Economics report prepared for the City of Chula Vista:
[T]he U.S. economy is stronger today than it was a year ago. GDP growth is solid, job growth continues, industrial production remains near record-high levels, profits and wages are rising, and national debt markets are showing little sign of stress. Despite current strength, Beacon Economics is le ss optimistic today than we were 12 months ago. The Fed’s excessive $5 trillion in quantitative easing and the 40% jump in the money supply that resulted, created massive government de ficits and a large asset bubble. The national economy has weathered rising interest rates over the last year largely because of these imbalances, but they also imply that inflationary pressures are not behind us and more Fed tightening is ahead. The sharp rise in the co st of capital is causing signs of stress, particularly in the real estate industry. But that stress has not spread to the debt markets as lending institutions continue to have record-low delinquencies.
Locally, the City’s fiscal outlook remains positive, demonstr ated by the continued economic growth, infrastructure investments, and commerci al and residential development throughout the City. The City continues to make substantial progress on major City projects, including the Gaylord Pacific Hotel and Convention Center on the Chula Vista Bayfront and the University and Innovation District in East Chula Vista. Despite the positive outlook, the City continues to closely monitor the state of the economy as a risk of recession continues to loom.
According to the U.S. Bureau of Labor Statistics, the seasonally unadjusted unemployment rate in San Diego County was 4.0% in June 2023, which is higher than the 3.4% rate recorded one year ago in June 2022. The regional unemployment rate for June 2023 re mained lower than the California state’s rate of Permit Category 2023 2022 Change $ Change %
Residential 262,959,081$ 248,217,310$ 14,741,771$ 5.9% Non-Residential 47,576,822 133,873,850 (86,297,029) -64.5% Additions & Alterations 129,321,240 110,453,571 18,867,668 17.1% Demolitions 4,377,994 205,890 4,172,105 2026.4% Total 444,235,137$ 492,750,621$ (48,515,484)$ -9.8% 22 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
4.6% and was higher than the national unemployment rate of 3.6%. The City’s unemployment rate increased from the prior year, 4.2% in June 2023 in comparison to 4.0% in June 2022.
The consumer price index for the greater San Diego area showed an increase of 6.7% for the calendar year 2022, which is higher than the 5.2% rate for calendar year 2021. Consumer price index information for the San Diego area is only released twice each year, June and December. The consumer price index for the first half of calendar year 2022 increased at an annual rate of 8.1%, whereas the second half of the year showed a rate increase of 7.3%, resulting in the overall total rate for the year of 7.7%. For the first half of calendar year 2023, the rate increased at a higher annual rate of 5.5%.
In June 2023, the region’s housing market reported 2, 495 existing single-family homes sold. On average, single-family homes in the region were on the market fo r 24 days in June 2023, an increase of 4 days of market time in comparison to June 2022.
The median price for the region in June 2022 was $1, 000,000, an increase of 2.5% compared to one year ago, when the median price was $987,225.
The table below presents the City’s five zip codes median listing price for single-family homes comparing data for June 2023 and June 2022. The information was obtained from Zillow Inc, a company that tracks and analyzes real estate markets.
Data for June 2023 Compared to June 2022
In fiscal year 2022, the City of Chula Vista and the Port of San Diego successfully secured $275 million in public bond funding for construction on the Chula Vista bayfront, enabling the flagship Gaylord Pacific Resort and Convention Center project to break ground. The developed Chula Vista bayfront is expected to have an enormous impact on the City and the San Diego region, attracting visitors from throughout the State of California and beyond. The developed bayfront will raise the City’s quality of life, with new parks and coastal access, and amenities for all to enjoy. The construction project is anticipated to crea te 3,580 jobs and once open is expected to have an economic impact of half-a-billion dollars each year and produce 4,000 permanent jobs.
Fiscal Year 2024 Budget
The City ended the fiscal year 2023 with an unassigned fund balance of $24.9 million and a committed fund balance of $18.3 million, including $9.7 millio n for an Economic Contingency Reserve and $4.2 million for a Catastrophic Events Contingency R eserve within the General Fund and a $4.3 million Economic Contingency Reserve within the Measure A Sales Tax Fund. Assigned fund balance included $25.1 million related to capital projects funded by M easure P sales tax as well as $44.8 million related to Measure A sales tax.
Zip Code Locale 2023 2022
Percent
Change
91910 North 756,779 $ 784,927 $ -3.6%
91911 South 693,256 714,890 -3.0%
91913 Eastlake 829,168 875,025 -5.2% 91914 Northeast 1,053,049 1,100,793 -4.3%
91915 Southeast 805,191 850,700 -5.3% Single-Family Home Median Price
23 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2023
In May 2023, the Chula Vista City Council adopte d the fiscal year 2024 budget which provides $543.9 million in appropriations to fund all City activities. The General Fund budget total is $258.2 million. The City continues to adopt a one-year budget.
Based on information received from the San Diego County Assessor, Chula Vista’s projected change in total assessed value for fiscal year 2024 is 6.7% higher when compared to fiscal year 2023 total assessed values.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all of its citizens, taxpayers, customers, investors and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Chula Vista, Finance Department, 276 Fourth Avenue, Chula Vista, California 91910.
24 BASIC FINANCIAL STATEMENTS
25
26 CITY OF
CHULA VISTA
GOVERNMENT-WIDE FINANCIAL
STATEMENTS
27
28 CITY OF
CHULA VISTA
CITY OF CHULA VISTA
STATEMENT OF NET POSITION
JUNE 30, 2023
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 421,398,523$ 171,059,037$ 592,457,560$ Restricted assets:
Cash and investments 7,735,990 - 7,735,990
Cash with fiscal agent 24,965,589 - 24,965,589
Receivables:
Accounts 7,011,230 23,556,058 30,567,288
Taxes 25,081,739 - 25,081,739
Accrued interest 2,573,922 888,049 3,461,971
Deferred loans 60,811,053 - 60,811,053
Successor Agency 2,015,766 - 2,015,766
Leases 184,542 - 184,542
Due from other governments 13,530,797 9,544 13,540,341 Advances to Successor Agency of Chula Vista RDA 2,291,340 - 2,291,340 Internal balances 2,348,567 (2,348,567) -
Inventories - 123,078 123,078
Prepaid costs 1,164,525 39,639 1,204,164
Capital assets not being depreciated 638,766,740 191,578,703 830,345,443 Capital assets, net of depreciation 724,002,643 137,212,511 861,215,154 Total Assets 1,933,882,966 522,118,052 2,456,001,018
DEFERRED OUTFLOWS OF RESOURCES
Pension related 112,718,795 14,491,142 127,209,937
OPEB related 5,594,318 930,835 6,525,153
Deferred charge on refunding 3,277,412 - 3,277,412
Total Deferred Outflows of Resources 121,590,525 15,421,977 137,012,502
LIABILITIES
Accounts payable 14,190,234 1,760,460 15,950,694
Accrued liabilities 7,437,591 831,141 8,268,732
Retention payable 2,241,887 74,851 2,316,738
Accrued interest payable 1,813,554 67,799 1,881,353 Deposits payable 2,834,555 13,508,640 16,343,195
Unearned revenue 48,025,429 422,534 48,447,963
Noncurrent liabilities:
Due within one year:
Bonds, notes, leases, subscriptions and financed purchases 23,200,503 1,840,605 25,041,108 Compensated absences 7,064,514 665,155 7,729,669
Claims and judgments 4,000,000 - 4,000,000
Due in more than one year:
Net pension liability 46,805,765 6,707,998 53,513,763 Total OPEB liability 23,751,795 3,952,047 27,703,842 Bonds, notes, leases, subscriptions and financed purchases 424,201,940 27,626,006 451,827,946 Compensated absences 2,830,048 321,087 3,151,135
Claims and judgments 34,077,873 - 34,077,873
Total Liabilities 642,475,688 57,778,323 700,254,011
DEFERRED INFLOWS OF RESOURCES
Leases related 184,542 - 184,542
Pension related 14,000,257 1,302,537 15,302,794
OPEB related 2,984,608 496,607 3,481,215
Total Deferred Inflows of Resources 17,169,407 1,799,144 18,968,551
NET POSITION
Net investment in capital assets 1,228,680,322 325,567,886 1,554,248,208 Restricted for:
Community development 11,468,857 - 11,468,857
Public works 73,367,120 - 73,367,120
Capital projects 134,996,123 - 134,996,123
Debt service 5,709,798 - 5,709,798
Low-mod income housing 13,590,518 - 13,590,518
Grants 19,762,071 - 19,762,071
Section 115 trust for pension 25,673,596 - 25,673,596 Other 2,795,056 - 2,795,056
Unrestricted (120,215,065) 152,394,676 32,179,611
Total Net Position 1,395,828,396$ 477,962,562 1,873,790,958$ Primary Government
The notes to financial statements are an integral part of this statement. 29 CITY OF CHULA VISTA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Operating Capital Total
Charges for Contributions Contributions Program
Expenses Services and Grants and Grants Revenues
FUNCTIONS/PROGRAMS:
Primary Government:
Governmental Activities:
General government 43,199,148$ 1,943,828$ 6,567,164$ -$ 8,510,992$ Public safety 130,847,798 8,933,510 15,738,271 - 24,671,781 Community development 25,674,814 9,647,486 13,016,568 23,002,551 45,666,605 Public works 81,289,367 30,697,778 1,966,296 38,999,312 71,663,386 Parks and recreation 5,783,062 2,479,537 - - 2,479,537 Library 3,749,853 604,712 17,103,859 - 17,708,571 Interest on long-term debt 13,400,138 - - - -
Total Governmental Activities 303,944,180 54,306,851 54,392,158 62,001,863 170,700,872 Business-Type Activities:
Sewer Fund 40,934,038 49,117,788 - - 49,117,788 Sewer Development Impact Fees 387,959 832,475 - - 832,475 Development Services Fund 10,155,101 9,298,438 - - 9,298,438 CV Elite Athlete Training Ctr 1,219,972 - - - - Bayfront Trolley Station 11 - - - -
Transit Fund 8,483 - - - -
Chula Vista Muni Golf Course 3,173,834 3,214,664 - - 3,214,664 Transport Enterprise 11,191,576 18,224,005 - - 18,224,005 Living Coast Discovery Center 172,989 - - - -
Total Business-Type Activities 67,243,963 80,687,370 - - 80,687,370 Total Primary Government 371,188,143$ 134,994,221 54,392,158 62,001,863 251,388,242
GENERAL REVENUES
Taxes:
Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business licenses taxes
Utility users tax
Residential construction tax
Property transfer tax
Other taxes
Investment Income
Miscellaneous
Gain (Loss) on sale of capital asset
SPECIAL ITEM
TRANSFERS
Total General Revenues and Transfers
Change in Net Position
NET POSITION - BEGINNING
Restatement
Net Position - Beginning, as restated
NET POSITION - ENDING
Program Revenues
The notes to financial statements are an integral part of this statement. 30 30
Primary Government
Governmental Business-Type
Activities Activities Total
(34,688,156)$ -$ (34,688,156)$
(106,176,017) - (106,176,017)
19,991,791 - 19,991,791
(9,625,981) - (9,625,981)
(3,303,525) - (3,303,525)
13,958,718 - 13,958,718
(13,400,138) - (13,400,138)
(133,243,308) - (133,243,308)
- 8,183,750 8,183,750
- 444,516 444,516
- (856,663) (856,663)
- (1,219,972) (1,219,972)
- (11) (11)
- (8,483) (8,483)
- 40,830 40,830
- 7,032,429 7,032,429
- (172,989) (172,989)
- 13,443,407 13,443,407
(133,243,308) 13,443,407 (119,799,901)
75,655,629 - 75,655,629
8,830,406 - 8,830,406
103,350,833 - 103,350,833
14,432,110 - 14,432,110
2,017,470 - 2,017,470
3,643,465 - 3,643,465
166,875 - 166,875
1,341,179 - 1,341,179
16,259,368 16,259,368
9,523,650 2,319,648 11,843,298
11,184,009 9,730,345 20,914,354
(296,411) 70,150 (226,261)
(2,765,896) - (2,765,896)
7,965,818 (7,965,818) -
251,308,505 4,154,325 255,462,830
118,065,197 17,597,732 135,662,929
1,260,494,773 460,254,402 1,720,749,175
17,268,426 110,428 17,378,854
1,277,763,199 460,364,830 1,738,128,029
1,395,828,396$ 477,962,562 1,873,790,958
Net (Expenses) Revenues and Changes in Net Position
The notes to financial statements are an integral part of this statement. 31
32 CITY OF
CHULA VISTA
FUND FINANCIAL STATEMENTS
33
34 CITY OF
CHULA VISTA
GOVERNMENTAL FUND FINANCIAL
STATEMENTS
35 CITY OF CHULA VISTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
Capital
Projects Fund
General
Federal, State, and
Local Grants
Housing Successor
Agency
Development
Impact Funds
ASSETS
Cash and investments 106,084,010$ 63,623,416$ 12,110,391$ 84,369,394$ Receivables:
Accounts (net of allowance for uncollectibles) 5,283,588 372,909 - 928,210 Taxes 23,282,882 - - -
Accrued interest 843,372 279,351 113,898 465,763
Deferred loans (net of allowance for uncollectibles) - 24,234,526 25,721,711 3,560,002 Successor Agency 2,015,766
Leases 184,542 - - -
Due from other governments 1,527,170 10,511,973 - - Due from other funds 2,318,829 - - -
Prepaid costs 670,922 32,542 - -
Advances to other funds 2,340,621 - - -
Advances to Successor Agency of Chula Vista RDA 2,291,340 - - - Restricted assets:
Cash and investments 6,859,745 - 876,245 - Cash and investments with fiscal agents 19,132,300 - - - Total Assets 172,835,087$ 99,054,717$ 38,822,245$ 89,323,369$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable 5,788,597$ 1,747,670$ 32$ 251,608$ Retentions payable 1,261,526 247,698 - 1,793 Accrued liabilities 7,028,739 310,085 - - Deposits payable 1,430,510 - - -
Due to other funds - - - -
Unearned revenues - 47,779,603 - -
Total Liabilities 15,509,372 50,085,056 32 253,401 Deferred Inflows of Resources:
Unavailable revenues 7,268,716 29,207,589 25,231,695 4,752,356 Related to leases 184,542 - - -
Total Deferred Inflows of Resources 7,453,258 29,207,589 25,231,695 4,752,356 Fund Balances:
Nonspendable 5,302,883 32,542 - -
Restricted 25,673,596 19,729,530 13,590,518 84,317,612 Committed 18,253,033 - - -
Assigned 75,747,000 - - -
Unassigned (deficit) 24,895,945 - - -
Total Fund Balances 149,872,457 19,762,072 13,590,518 84,317,612
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE
Special Revenue Funds
172,835,087$ 89,323,369$ 38,822,245$ 99,054,717$ The notes to financial statements are an integral part of this statement. 36 CITY OF CHULA VISTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Successor Agenc
y
Leases
Due from other governments
Due from other funds
Prepaid costs
Advances to other funds
Advances to Successor Agency of Chula Vista RD
A
Restricted assets:
Cash and investments
Cash and investments with fiscal agents
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Related to leases
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable
Restricte
d
Committed
Assigned
Unassigned (deficit)
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE
Other
Governmental
Funds
Total
Governmental
Funds
143,020,064$ 409,207,275 $
391,631 6,976,338
1,798,857 25,081,739
867,589 2,569,973
7,294,814 60,811,053
2,015,766
- 184,542
1,491,523 13,530,666
- 2,318,829
458,366 1,161,830
- 2,340,621
- 2,291,340
- 7,735,990
5,833,277 24,965,577
161,156,121$ 561,191,539$
6,004,166$ 13,792,073$
730,870 2,241,887
48,122 7,386,946
1,404,045 2,834,555
1,867,024 1,867,024
245,826 48,025,429
10,300,053 76,147,914
9,265,781 75,726,137
- 184,542
9,265,781 75,910,679
458,366 5,793,791
143,560,975 286,872,231
- 18,253,033
- 75,747,000
(2,429,054) 22,466,891
141,590,287 409,132,946
561,191,539$ 161,156,121$
The notes to financial statements are an integral part of this statement. 37
38 CITY OF
CHULA VISTA
CITY OF CHULA VISTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO
THE STATEMENT OF NET POSITION
JUNE 30, 2023
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds 409,132,946$
1,361,921,091
Deferred outflows - pension related 111,662,957$
Deferred outflows - OPEB related 5,535,809
Deferred inflows - pension related (13,905,353)
Deferred inflows - OPEB related (2,953,393)
Total deferred outflows and inflows related to postemployment benefits 100,340,020 75,726,137
10,531,058
Bonds payable (114,230,000)
Private placement notes (6,225,594)
Pension-related debt (306,654,012)
Financed purchases (7,911,814)
Leases (442,467)
Subscription assets (1,283,006)
Compensated absences (9,817,024)
Claims (38,077,873)
Net OPEB liability (23,503,381)
Net pension liability (46,317,015)
Accrued interest payable on long-term debt (1,810,241)
Total long-term liabilities (556,272,427)
Deferred amount on refunding 3,277,412
Premium on bonds payable (8,827,841)
Total premiums, discounts, and deferred items (5,550,429) Net Position of Governmental Activities 1,395,828,396$
Capital assets used in governmental activities (less internal service fund allocations) are not financial resources and, therefore, are not reported in the funds.
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either deferred or not reported in the funds. (Note 2A).
Internal service funds are used by management to charge the cost of fleet management, technology replacement, and workers' compensation to individual funds. The assets, deferred outflows of resources, liabilities, and deferred inflows of resources of the internal service funds are included in governmental activities in the statement of net position.
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of Differences between expected and actual experiences, assumption changes, net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position.
The notes to financial statements are an integral part of this statement. 39 CITY OF CHULA VISTA
STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND
BALANCE GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Capital
Projects Fund
General
Federal, State, and
Local Grants
Housing Successor
Agency
Development
Impact Funds
Revenues:
Taxes 212,614,369$ -$ -$ -$
License and permits 1,918,964 - - -
Intergovernmental 1,599,601 51,239,393 - -
Charges for service 16,801,888 1,859,196 - 384,808
Use of money and property (investment losses) 5,782,553 797,360 388,235 930,216 Fines and forfeitures 1,084,498 - - -
Developer participation 1,226,903 26,554 - 22,343,828 Miscellaneous 6,013,634 799,473 143,489 -
Total Revenues (net losses) 247,042,410 54,721,976 531,724 23,658,852 Expenditures:
Current:
General government 34,522,104 3,328,209 - -
Public safety 108,831,059 8,534,113 - -
Community development 7,551,180 11,722,729 4,739 3,370,944 Parks and recreation 4,837,182 - - -
Public works 30,159,039 1,087,864 - -
Library 3,446,182 32,335 - -
Capital outlay 24,639,805 10,701,425 - 6,754,602
Debt service:
Principal retirement 1,165,140 - - 67,902
Interest and fiscal charges 110,183 - - 187,896
Total Expenditures 215,261,874 35,406,675 4,739 10,381,344 Excess (Deficiency) Revenues over Expenditures 31,780,536 19,315,301 526,985 13,277,508 Other Financing Sources (Uses):
Transfers in 16,144,177 491,287 - -
Transfers out (36,259,182) (3,595,097) (5,262) (5,276,292) Subscription-based IT arrangement 404,808 - - -
Financed Purchase - - - 3,986,967
Total Other Financing Sources (Uses) (19,710,197) (3,103,810) (5,262) (1,289,325) Special item (2,765,896) - - -
Net Change in Fund Balance 9,304,443 16,211,491 521,723 11,988,183 Fund Balances - Beginning 140,568,014 3,550,581 13,068,795 72,329,429 Restatements - - - -
Fund Balances - Beginning as Restated 140,568,014 3,550,581 13,068,795 72,329,429 Fund Balances (Deficit) - Ending 149,872,457$ 19,762,072$ 13,590,518$ 84,317,612$ Special Revenue Funds
The notes to financial statements are an integral part of this statement. 40 CITY OF CHULA VISTA
STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND
BALANCE GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property (investment losses)
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues (net losses)
Expenditures:
Current:
General government
Public safety
Community development
Parks and recreation
Public works
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Subscription-based IT arrangement
Financed Purchase
Total Other Financing Sources (Uses)
Special ite
m
Net Change in Fund Balance
Fund Balances - Beginning
Restatements
Fund Balances - Beginning as Restated
Fund Balances (Deficit) - Ending
Other
Governmental Funds
Total
Governmental Funds
166,875$ 212,781,244$
42,100 1,961,064
16,893,767 69,732,761
20,986,296 40,032,188
1,600,720 9,499,084
513,887 1,598,385
4,847,874 28,445,159
1,706,434 8,663,030
46,757,953 372,712,915
1,344,217 39,194,530
64,978 117,430,150
1,666,396 24,315,988
8 4,837,190
14,962,763 46,209,666
- 3,478,517
19,929,934 62,025,766
21,228,511 22,461,553
12,776,124 13,074,203
71,972,931 333,027,563
(25,214,978) 39,685,352
42,230,391 58,865,855
(6,003,292) (51,139,125)
- 404,808
- 3,986,967
36,227,099 12,118,505
- (2,765,896)
11,012,121 49,037,961
129,933,409 359,450,228
644,757 644,757
130,578,166 360,094,985
141,590,287$ 409,132,946$
The notes to financial statements are an integral part of this statement. 41
42 CITY OF
CHULA VISTA
CITY OF CHULA VISTA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 49,037,961$ 23,832,311
1,447,745
Donation of capital assets 38,999,311$
Loss on disposal of capital assets (344,767)
38,654,544
Financed purchases (3,986,966)
Subscription issued (404,808)
Principal paid on leases 241,346
Principal paid on subscription assets 841,929
Principal paid on bonds payable 12,110,000
Principal paid on pension-related debt 8,057,427
Principal paid on private placement notes 2,769,433
Principal paid on financed purchases 876,134
20,504,496
517,146
Accrued interest on long-term debt 40,117
Amortization of bond premiums and discounts 1,486,612
Amortization of deferred amounts on refunding (324,009) Compensated absences and claims (7,353,683)
Changes in pension liabilities and related deferred outflows and inflows of resources (8,027,076) Changes in OPEB liabilities and related deferred outflows and inflows of resources (1,750,966) (15,929,005)
Change in Net Position of Governmental Activities $ 118,065,197 Governmental funds report capital outlays as expenditures. However, in the statement of activites, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is th amount by which capital outlays exceeded depreciation expense in the current period. (Note 2B).
Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds
.
The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins, and donations) is to increase net position.
Bond and other debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond and other debt principal is an expenditure in the governmental funds, but repayment reduces long-term liabilities in the statement of net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities.
The internal service funds are used by management to charge the costs of fleet management, technology replacement, and workers' compensation to individual funds. The net revenue of certain activities of internal service funds is reported with governmental activities.
Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
The notes to financial statements are an integral part of this statement. 43
44 CITY OF
CHULA VISTA
PROPRIETARY FUND FINANCIAL
STATEMENTS
45 CITY OF CHULA VISTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
Sewer Fund
Sewer
Development
Impact Fees
Development
Services Fund
CV Elite Athlete
Training Ctr
ASSETS
Current Assets:
Cash and investments 145,472,696$ 5,218,544$ 17,079,605$ -$ Cash with fiscal agent 65 - 106 -
Receivables:
Accounts (net of allowance for uncollectibles) 10,870,165 - 10,290 9,370 Accrued interest 789,426 31,055 39,973 -
Due from other governments 9,387 - 157 -
Prepaid costs 14,659 - 24,044 -
Inventories - - - -
Total Current Assets 157,156,398 5,249,599 17,154,175 9,370 Noncurrent Assets:
Advances to other funds 18,174,656 - - -
Capital assets:
Land - - - 180,677,144
Construction in progress 10,212,558 90,342 - - Buildings and structures - - - 17,027,588
Machinery and equipment 9,013,242 - 297,601 - Infrastructure 268,420,364 121,387 - -
Lease asset 97,658 - 780,318 -
Less accumulated depreciation/amortization (158,304,706) (24,318) (329,016) (2,361,726) Total Noncurrent Assets 147,613,772 187,411 748,903 195,343,006 Total Assets 304,770,170 5,437,010 17,903,078 195,352,376
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows 3,761,670 - 6,800,796 - OPEB deferred outflows 255,315 - 340,419 -
Total Deferred Outflows of Resources 4,016,985 - 7,141,215 -
LIABILITIES
Current Liabilities:
Accounts payable 692,685 - 556,762 29,186
Accrued liabilities 200,445 - 306,475 -
Accrued interest payable 18,182 - 38,203 -
Accrued compensated absences 240,284 - 225,663 -
Retentions payable 20,252 - 54,599 -
Unearned revenue 422,534 - - -
Deposits payable - - 13,508,640 -
Due to other funds - - - 451,805
Bonds, notes, subscriptions, and financed purchases 276,071 - 661,533 - Total Current Liabilities 1,870,453 - 15,351,875 480,991 Noncurrent Liabilities:
Advances from other funds - 18,174,656 - -
Accrued co
mpensated absences 30,707 - 265,410 -
Net pension liability 1,741,291 - 3,148,111 - Net OPEB liability 1,083,990 - 1,445,320 - Bonds, notes, subscriptions, and financed purchases 9,674,968 - 16,117,788 - Total Noncurrent Liabilities 12,530,956 18,174,656 20,976,629 - Total Liabilities 14,401,409 18,174,656 36,328,504 480,991
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows 338,119 - 611,290 -
OPEB deferred inflows 136,212 - 181,616 -
Total Deferred Inflows of Resources 474,331 - 792,906 -
NET POSITION (DEFICIT)
Net investment in capital assets 129,428,086 187,411 272,856 195,343,006 Unrestricted 164,483,329 (12,925,057) (12,349,973) (471,621) Total Net Position (Deficit) 293,911,415$ (12,737,646)$ (12,077,117)$ 194,871,385$ Business-Type Activities - Enterprise Funds
The notes to financial statements are an integral part of this statement. 46 CITY OF CHULA VISTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
ASSETS
Current Assets:
Cash and investments
Cash with fiscal agen
t
Receivables:
Accounts (net of allowance for uncollectibles)
Accrued interes
t
Due from other governments
Prepaid costs
Inventories
Total Current Assets
Noncurrent Assets:
Advances to other funds
Capital assets:
Land
Construction in progress
Buildings and structures
Machinery and equipmen
t
Infrastructure
Lease asse
t
Less accumulated depreciation/amortization
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows
OPEB deferred outflows
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities:
Accounts payable
Accrued liabilities
Accrued interest payable
Accrued compensated absences
Retentions payable
Unearned revenue
Deposits payable
Due to other funds
Bonds, notes, subscriptions, and financed purchases
Total Current Liabilities
Noncurrent Liabilities:
Advances from other funds
Accrued compensated absences
Net pension liabilit
y
Net OPEB liability
Bonds, notes, subscriptions, and financed purchases
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows
OPEB deferred inflows
Total Deferred Inflows of Resources
NET POSITION (DEFICIT)
Net investment in capital assets
Unrestricted
Total Net Position (Deficit)
Adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time (Note 2C)
Net Position of Business-Type Activities
Governmental
Activities
Other
Enterprise
Funds Totals
Internal
Service Funds
2,423,472$ 170,194,317$ 12,191,248$ 864,549 864,720 12
12,666,233 23,556,058 34,892
27,595 888,049 3,949
- 9,544 131
936 39,639 2,695
123,078 123,078 -
16,105,863 195,675,405 12,232,927 - 18,174,656 -
598,659 181,275,803 -
- 10,302,900 -
727,553 17,755,141 -
4,644,202 13,955,045 5,534,682
- 268,541,751 -
- 877,976 -
(2,897,636) (163,917,402) (4,686,390)
3,072,778 346,965,870 848,292
19,178,641 542,641,275 13,081,219 3,928,676 14,491,142 1,055,838 335,101 930,835 58,509
4,263,777 15,421,977 1,114,347 481,827 1,760,460 398,161
324,221 831,141 50,645
11,414 67,799 3,313
199,208 665,155 19,490
- 74,851 -
- 422,534 -
- 13,508,640 -
- 451,805 -
903,001 1,840,605 49,170
1,919,671 19,622,990 520,779
2,340,621 20,515,277 -
24,970 321,087 58,048
1,818,596 6,707,998 488,750 1,422,737 3,952,047 248,414 1,833,250 27,626,006 1,778,539 7,440,174 59,122,415 2,573,751 9,359,845 78,745,405 3,094,530 353,128 1,302,537 94,904
178,779 496,607 31,215
531,907 1,799,144 126,119
336,527 325,567,886 848,292
13,214,139 151,950,817 10,126,625 13,550,666$ 477,518,703$ 10,974,917$
443,859
477,962,562$
Business-Type Activities -
Enterprise Funds
The notes to financial statements are an integral part of this statement. 47 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET P
OSITION
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Sewer Fund
Sewer
Development
Impact Fees
Development
Services Fund
CV Elite Athlete
Training Ctr
OPERATING REVENUES
Sales and service charges 49,117,788$ 832,475$ 9,298,438$ -$ Interdepartmental charges - - - -
Other 6,256,979 - 2,680,785 792,581
Total Operating Revenues 55,374,767 832,475 11,979,223 792,581
OPERATING EXPENSES
Administration and general 34,435,906 13,189 9,571,193 882,826 Depreciation/amortization expense 6,289,202 3,041 209,453 337,146 Total Operating Expenses 40,725,108 16,230 9,780,646 1,219,972 Operating Income (Loss) 14,649,659 816,245 2,198,577 (427,391)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss) 2,257,962 57,437 101,311 (6,562) Interest expense (228,822) (371,729) (383,688) -
Gain on disposal of capital assets 70,150 - - -
Total Nonoperating Revenues (Expenses) 2,099,290 (314,292) (282,377) (6,562) Income (Loss) Before Transfers 16,748,949 501,953 1,916,200 (433,953) Transfers in 53,806 - 871,730 126,526
Transfers out (3,565,640) - (2,393,036) (31,280) Change in Net Position 13,237,115 501,953 394,894 (338,707) NET POSITION (DEFICIT) - BEGINNING 280,634,258 (13,239,599) (12,542,397) 195,210,092 Restatements 40,042 - 70,386 -
Net Position - Beginning, as Restated 280,674,300 (13,239,599) (12,472,011) 195,210,092 NET POSITION (DEFICIT) - ENDING 293,911,415$ (12,737,646)$ (12,077,117)$ 194,871,385$ Business-Type Activities - Enterprise Funds
The notes to financial statements are an integral part of this statement. 48 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET
POSITION
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
OPERATING REVENUES
Sales and service charges
Interdepartmental charges
Othe
r
Total Operating Revenues
OPERATING EXPENSES
Administration and general
Depreciation/amortization expense
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss)
Interest expense
Gain on disposal of capital assets
Total Nonoperating Revenues (Expenses)
Income (Loss) Before Transfers
Transfers in
Transfers out
Change in Net Position
NET POSITION (DEFICIT) - BEGINNING
Restatements
Net Position - Beginning, as Restated
NET POSITION (DEFICIT) - ENDING
Adjustment for the net effect of the current year activity between the internal service funds and the enterprise funds
Change in Net Position of Business-Type Activities
Governmental
Activities
Other
Enterprise
Funds Totals
Internal
Service Funds
21,438,669$ 80,687,370$ 125,551$
- - 9,647,566
- 9,730,345 404,262
21,438,669 90,417,715 10,177,379
13,527,204 58,430,318 9,702,864
945,179 7,784,021 184,900
14,472,383 66,214,339 9,887,764
6,966,286 24,203,376 289,615
(90,500) 2,319,648 24,564
(87,817) (1,072,056) (42,045)
- 70,150 48,356
(178,317) 1,317,742 30,875
6,787,969 25,521,118 320,490
231,762 1,283,824 321,760
(3,259,685) (9,249,641) (82,673) 3,760,046 17,555,301 559,577
9,790,620 10,415,340
- -
9,790,620 10,415,340
13,550,666$ 10,974,917$
42,431
17,597,732$
Business-Type Activities -
Enterprise Funds
The notes to financial statements are an integral part of this statement. 49 CITY OF CHULA VISTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Sewer Fund
Sewer
Development
Impact Fees
Development
Services Fund
CV Elite Athlete
Training Ctr
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 55,604,478$ 832,475$ 12,231,980$ 882,286$ Cash received from interfund service provided - - - - Cash paid to suppliers for goods and services (29,231,208) (13,189) (1,513,188) (886,111) Cash paid to employees for services (4,486,331) - (7,318,719) - Cash received from others 40,042 - 70,386 - Net Cash Provided by (Used for)
Operating Activities 21,926,981 819,286 3,470,459 (3,825)
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in 203,806 - 871,730 126,526 Cash transfers out (3,715,640) - (2,393,034) (31,280) Cash received from interfund borrowings - - - -
Interest paid on interfund borrowings - (371,729) - - Repayment of interfund borrowings 128,271 (128,271) - (84,859) Principal payments on pension bonds (252,036) - (135,050) - Interest paid on pension bonds (228,709) - (375,121) - Net Cash Provided by (Used for)
Non-Capital Financing Activities (3,864,308) (500,000) (2,031,475) 10,387
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from sales of capital assets 70,150 - - - Acquisition and construction of capital assets (11,347,439) (68,166) (697,714) - Principal paid on capital debt - - - -
Interest paid on capital debt - - - -
Net Cash Used for
Capital and Related Financing Activities (11,277,289) (68,166) (697,714) -
CASH FLOWS FROM INVESTING ACTIVITIES
Investment loss 2,039,517 46,775 90,415 (6,562) Net Cash Used for
In
vesting Activities 2,039,517 46,775 90,415 (6,562) Net Increase (Decrease)
in Cash and Cash Equivalents 8,824,901 297,895 831,685 - Cash and Cash Equivalents - July 1 136,647,860 4,920,649 16,248,026 - Cash and Cash Equivalents - June 30 145,472,761$ 5,218,544$ 17,079,711$ -$ Reconciliation of Cash and Cash Equivalents to the
Amounts Reported on the Statement of Net Position
Cash and investments 145,472,696$ 5,218,544$ 17,079,605$ -$ Cash with fiscal agent 65 - 106 -
Total Cash and Cash Equivalents reported
on the Statement of Net Position 145,472,761$ 5,218,544$ 17,079,711$ -$ Business-Type Activities - Enterprise Funds
The notes to financial statements are an integral part of this statement. 50 CITY OF CHULA VISTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users
Cash received from interfund service provided
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from others
Net Cash Provided by (Used for)
Operating Activities
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in
Cash transfers out
Cash received from interfund borrowings
Interest paid on interfund borrowings
Repayment of interfund borrowings
Principal payments on pension bonds
Interest paid on pension bonds
Net Cash Provided by (Used for)
Non-Capital Financing Activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from sales of capital assets
Acquisition and construction of capital assets
Principal paid on capital debt
Interest paid on capital debt
Net Cash Used for
Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment loss
Net Cash Used for
Investing Activities
Net Increase (Decrease)
in Cash and Cash Equivalents
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30
Reconciliation of Cash and Cash Equivalents to the
Amounts Reported on the Statement of Net Position
Cash and investments
Cash with fiscal agent
Total Cash and Cash Equivalents reported
on the Statement of Net Position
Governmental
Activities
Other
Enterprise
Funds Totals
Internal
Service Funds
20,776,740$ 90,327,959$ 474,163$
- - 9,708,168
(6,979,982) (38,623,678) (4,385,891)
(7,836,216) (19,641,266) (5,281,781)
40,849 151,277 -
6,001,391 32,214,292 514,659
231,762 1,433,824 321,760
(3,259,685) (9,399,639) (82,673)
(178) (178) -
- (371,729) -
(442,528) (527,387) -
- (387,086) (48,024)
- (603,830) (42,054)
(3,470,629) (9,856,025) 149,009
- 70,150 48,356
(98,266) (12,211,585) (587,351)
(894,038) (894,038) -
(91,546) (91,546) -
(1,083,850) (13,127,019) (538,995)
(110,729) 2,059,416 25,263
(110,729) 2,059,416 25,263
1,336,183 11,290,664 149,936
1,951,838 159,768,373 12,041,324
3,288,021$ 171,059,037$ 12,191,260$
2,423,472$ 170,194,317$ 12,191,248$
864,549 864,720 12
3,288,021$ 171,059,037$ 12,191,260$
Busin
ess-Type Activities -
Enterprise Funds
The notes to financial statements are an integral part of this statement. 51 CITY OF CHULA VISTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Sewer Fund
Sewer
Development
Impact Fees
Development
Services Fund
CV Elite Athlete
Training Ctr
Business-Type Activities - Enterprise Funds
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used for) Operating Activities:
Operating income (loss) 14,649,659 $ 816,245 $ 2,198,577 $ (427,391) $ Adjustments to Reconcile Operating Income (loss)
to Net Cash Provided by (Used for) Operating Activities:
Depreciation/Amortization 6,289,202 3,041 209,453 337,146 Restatement of beginning net position 40,042 - 70,386 - (Increase) decrease in accounts receivable (172,664) - 4 89,704 (Increase) decrease in prepaid costs and inventories 667 - 32,593 - (Increase) decrease in deferred outflows from pensions (3,416,712) - (6,247,364) - (Increase) decrease in deferred outflows from OPEB 70,568 - 80,513 - Increase (decrease) in accounts payable 174,835 - 88,902 (3,284) Increase (decrease) in unearned revenue 402,375 - - - Increase (decrease) in retentions payable (83,117) - 10,935 - Increase (decrease) in accrued liabilities 39,266 - 60,213 - Increase (decrease) in deposits payable - - 252,753 -
Increase (decrease) in compensated absences 6,116 - (64,268) - Increase (decrease) in net pension liability 7,652,666 - 12,631,987 - Increase (decrease) in net OPEB liability (25,807) - 11,832 - Increase (decrease) in deferred inflows from pensions (3,713,902) - (5,889,541) - Increase (decrease) in deferred inflows from OPEB 13,787 - 23,484 - Total Adjustments 7,277,322 3,041 1,271,882 423,566 Net Cash Provided by (Used for)
Operating Activities 21,926,981$ 819,286$ 3,470,459$ (3,825)$ Non-Cash Investing, Capital, and Financing Activities:
Donated capital assets 5,984,987$ -$ -$ -$
The notes to financial statements are an integral part of this statement. 52 CITY OF CHULA VISTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Reconciliation of Operating Income (Loss) to Net
Cash Provided by (Used for) Operating Activities:
Operating income (loss)
Adjustments to Reconcile Operating Income (loss)
to Net Cash Provided by (Used for) Operating Activities:
Depreciation/Amortization
Restatement of beginning net position
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid costs and inventories
(Increase) decrease in deferred outflows from pensions
(Increase) decrease in deferred outflows from OPEB
Increase (decrease) in accounts payable
Increase (decrease) in unearned revenue
Increase (decrease) in retentions payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in compensated absences
Increase (decrease) in net pension liabilit
y
Increase (decrease) in net OPEB liability
Increase (decrease) in deferred inflows from pensions
Increase (decrease) in deferred inflows from OPEB
Total Adjustments
Net Cash Provided by (Used for)
Operating Activities
Non-Cash Investing, Capital, and Financing Activities:
Donated capital assets
Governmental
Activities
Other
Enterprise
Funds Totals
Internal
Service Funds
Business-Type Activities -
Enterprise Funds
6,966,286$ 24,203,376 $ 289,615 $
945,179 7,784,021 184,900
- 110,428 -
(662,292) (745,248) 4,952
(36,299) (3,039) 123
(3,928,676) (13,592,752) (957,657)
17,939 169,020 9,383
26,531 286,984 (145,911)
- 402,375 -
- (72,182) -
34,711 134,190 7,030
- 252,753 -
199,679 141,527 (13,547)
1,818,596 22,103,249 2,171,219
220,457 206,482 17,206
353,128 (9,250,315) (1,058,364)
46,152 83,423 5,710
(964,895) 8,010,916 225,044
6,001,391$ 32,214,292$ 514,659$
-$ 5,984,987$ -$
The notes to financial statements are an integral part of this statement. 53
54 CITY OF
CHULA VISTA
FIDUCIARY FUND FINANCIAL
STATEMENTS
55 CITY OF CHULA VISTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2023
Private-Purpose
Trust Fund
Successor Agency
of the Former
Chula Vista RDA Custodial Funds
ASSETS
Cash and cash equivalents 3,983,355$ 8,381,661$ Cash and cash equivalents held with fiscal agents 314 130,432,416 Receivables:
Accounts - 494,857
Taxes - 100,134
Notes and loans 121,768 103,937,814
Accrued interest 21,804 156,585
Capital assets, not being depreciated 5,600,080 135,822,432 Capital assets, net of accumulated depreciation 750,407 - Total Assets 10,477,728 379,325,899
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,085,290 -
Total Deferred Outflows of Resources 1,085,290 -
LIABILITIES
Accounts payable 138 12,168,054
Accrued interes
t 205,328 1,965,356
Deposit Payable - 120,532
Due to other governments 55,141 -
Due to bond holders - 13,333,125
Advances from the City of Chula Vista 4,319,193 - Unearned revenues 121,769 -
Long-term liabilities:
Due in one year 1,995,000 550,000
Due in more than one year 20,062,069 306,177,267 Total Liabilities 26,758,638 334,314,334
NET POSITION (DEFICIT):
Net investment in capital assets - -
Restricted:
Individuals, organizations, and other governments (15,195,620) 45,011,565 Total Net Position (Deficit) (15,195,620)$ 45,011,565$ The notes to financial statements are an integral part of this statement. 56 CITY OF CHULA VISTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Private-Purpose
Trust Fund
Successor Agency
of the Former
Chula Vista RDA Custodial Funds
ADDITIONS
Investment Earnings:
Net increase (decrease) in fair value of investments (26,085)$ 392,536$ Interest, dividends, and other 62,452 3,444,254
Total Investment Earnings 36,367 3,836,790
Taxes 3,363,658 -
Contributions from other governments - 12,600,672
Special assessments - 13,714,767
Special item 4,788,560 -
Total Additions 8,188,585 30,152,228
DEDUCTIONS
Administrative expenses 17,932 1,044
Contractual services 209,881 12,373,655
Debt service and fiscal agent charges 703,609 26,472,613 Depreciation expense 47,724 -
Total Deductions 979,146 38,847,312
Net Change in Fiduciary Net Position 7,209,439 (8,695,084)
NET POSITION (DEFICIT) - BEGINNIN
G (22,405,059) 68,928,240
Restatements - (15,221,591)
Net Position (Deficit) - Beginning, as restated (22,405,059) 53,706,649 NET POSITION (DEFICIT) - ENDING (15,195,620)$ 45,011,565$ The notes to financial statements are an integral part of this statement. 57
58 CITY OF
CHULA VISTA
CITY OF CHULA VISTA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
NOTE DESCRIPTION PAGE
Note 1 – Reporting Entity and Summary of Significant Accounting Policies ..................................................... 60 Note 2 – Reconciliation of Government-Wide and Fund Financial Statements ................................................... 73 Note 3 – Stewardship, Compliance, and Accountability ...................................................................................... 74 Note 4 – Cash and Investments ........................................................................................................................... 75 Note 5 – Receivables ........................................................................................................................................... 79 Note 6 – Interfund Balances and Transactions .................................................................................................... 84 Note 7 – Capital Assets ....................................................................................................................................... 86 Note 8 – Long-Term Liabilities ........................................................................................................................... 88 Note 9 – Unearned Revenue ................................................................................................................................ 97 Note 10 – Compensated Absences ....................................................................................................................... 97 Note 11 – Self-Insurance Accrued Liabilities ...................................................................................................... 98 Note 12 – Leases................................................................................................................................................... 99 Note 13 – Subscription Based Information Technology Arrangements ............................................................ 101 Note 14 – Pension Plans .................................................................................................................................... 105 Note 15 – Post Retirement Health Benefits ....................................................................................................... 112 Note 16 – Commitments and Contingencies ..................................................................................................... 117 Note 17 – Classification of Fund Balances ........................................................................................................ 118 Note 18 – Restatements of Fund Balance and Net Position ............................................................................... 119 Note 19 – Change in Reporting Entity ................................................................................................................ 120 Note 20 – Special Item ....................................................................................................................................... 120 59 CITY OF CHULA VISTA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies The basic financial statements of the City of Chula Vista, California (the City) have been prepared in conformity with generally accepted accounting principles of the United States of America (U.S. GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the Citys accounting policies are described below.
A. Reporting Entity
The City, incorporated in 1911, was recognized as a city in the State of California by election in 1949. The City operates under an elected Council and appointed City Manager form of government and provides the following services as authorized by its charter: public safety, community services, engineering services, planning services, public works, general administrative services, and capital improvements.
The financial reporting entity consists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In addition, component units can be other organizations for which the primary government is accountable, and their exclusion would cause the reporting entitys financial statements to be misleading or incomplete.
Blended Component Unit
Blended component units, although legally separate entities, are, in substance part of the primary governments operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the primary government.
The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial accountability and operational responsibility. As a result, these organizations are considered component units of the City and are included within the financial statements of the City using the blended method.
All component units have a June 30 year-end. The City has no discreetly presented component units.
The Chula Vista Industrial Development Authority (the Development Authority) The Development Authority was formed in February 1982 for the purpose of promoting and developing commercial, industrial, and manufacturing enterprises and encouraging employment. The City Council acts as the governing body of the Development Authority and can impose its will on the Development Authority, establishing financial accountability and operational responsibility. The Development Authoritys financial data and transactions are included within the capital projects fund type. The City does not produce separate financial statements for the Development Authority.
The Chula Vista Public Financing Authority (the Public Financing Authority) The Public Financing Authority was established by resolution, pursuant to the City Charter and Constitution of the State of California, as a public body, to serve the public purposes of the City. The resolution was adopted on April 4, 1995. The Public Financing Authority was established by a joint exercise of powers agreement between the City and the Redevelopment Agency. The governing body of the Public Financing Authority is comprised of the consenting members of the City Council. The Public Financing Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes, and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City. 60 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) The Chula Vista Municipal Financing Authority (the Municipal Financing Authority) The Municipal Financing Authority was established by resolution, pursuant to the City Charter and Constitution of the State of California, as a public body, to serve the public purposes of the City. The resolution was adopted on June 11, 2013. The Municipal Financing Authority was established by a joint exercise of powers agreement between the City and the Housing Authority. The governing body of the Municipal Financing Authority is comprised of the consenting members of the City Council. The Municipal Financing Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes, and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City.
The Chula Vista Housing Authority (the Housing Authority)
The Housing Authority was created by the City of Chula Vista City Council (City Council) in March 1993 to centrally coordinate and administer the Citys programs for promoting balanced housing for families of all income levels. It was established pursuant to the State of California Health and Safety Code, Section 34200.
The City Council acts as the governing body and can impose its will on the Housing Authority, establishing financial accountability and operational responsibility. It is empowered to develop, finance and own low- income housing within the territorial limits of the City of Chula Vista. It uses a variety of local, state, and federal funding sources to administer and finance these programs. It is also the financing vehicle for the issuance of bonds for housing programs and services. The Housing Authoritys financial data and transactions are included within the special revenue fund type. The City does not produce separate financial statements for the Housing Authority.
Fiduciary Component Unit
Fiduciary component units are legally separate entities for which the City has a financial accountability for due to the City Council appointing the majority of the members of the component units respective Boards of Directors, and thereby being able to significantly infl uence and impose the Citys will on the component units activities. The assets of these component units are not held in a trust but are held for the benefit of organizations and other governments that are not part of the City; additionally, the assets of these component units are not derived from the Citys provision of goods or services to them. The following entities are considered to be fiduciary component units and are reported as Custodial Funds:
The Chula Vista Bayfront Facilities Financing Authority (the Bayfront Financing Authority)
The Bayfront Financing Authority was created as a joint powers agreement between the City of Chula Vista, the County of San Diego, and the San Diego Unified Port District for the purpose of issuing tax exempt debt obligations to finance development of the Chula Vista Bayfront Master Plan area.
The Bayfront Project Special Tax Financing District (the Bayfront District)
The Bayfront District was created as a joint community facilities agreement between the City of Chula Vista and the San Diego Unified Port District for the purpose of financing the acquisition or construction of certain public and private improvement and funding of certain services within the Chula Vista Bayfront Master Plan area. The Bayfront District does not issue separate financial statements.
B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures, or expenses, as appropriate. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating 61 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued)
compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements.
Government - Wide Financial Statements
The Citys Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City are not included in these statements.
These financial statements are presented on an economic resources measurement focus and the accrual basis of accounting. Accordingly, all the Citys assets and deferred outflows as well as liabilities and deferred inflows, with the difference reported as net position are presented in the accompanying Statement of Net Position. Also presented in this statement are capital assets including infrastructure assets as well as long-term liabilities.
Statement of Activities presents changes in Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred.
Certain types of transactions are reported as program revenues for the City in three categories:
Charges for services
Operating grants and contributions
Capital grants and contributions
Governmental Fund Financial Statements
Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and aggregate non-major governmental funds.
An accompanying schedule is presented to reconcile and explain the differences in total fund balance as presented in these statements to the Net Position presented in the Government-Wide Financial Statements. The City has presented all major funds that met the applicable criteria.
All governmental funds are accounted for on a spending, or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and other financing uses) to fund balances.
Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.
Revenues become available when received in cash, except for revenue which is subject to accrual and are recognized when due by the City. Generally, 60 days after year-end for primary revenue sources (i.e., property tax, sales tax, intergovernmental revenues, grants, and other taxes). Expenditures are recorded in the accounting period in which the related fund liability is incurred.
Unavailable revenues arise when potential revenues do not meet both the measurable and available criteria for recognition in the current period. Unearned revenues arise when the government receives cash before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition criteria are met or when the government has a legal claim to the resources, unavailable and unearned revenue is removed from the Balance Sheet and recognized as revenue.
The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34. 62 ►
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CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Governmental Fund Financial Statements (Continued)
The City reports the following major Governmental Funds:
General Fund This is the primary operating fund of the C ity. It is used to account for all revenues and expenditures that are not required to be accounted for in another fund.
Federal, State, and Local Grants This fund consists of misce llaneous grants/revenues such as:
Supplemental law enforcement services, CBAG, California Library Services Act, asset seizure, local law enforcement block grants, California Recreation grants, Public Safety grants, waste management and recycling, energy conservation, emergency shelter program, HOME program, CDBG program income project, American Rescue Plan Act funding, and Community Development Block grants.
Housing Successor Agency Special Revenue Fund This fund was established pursuant to Health and Safety Code Section 34176(b)(2) and is used to fund Low- and Moderate-Income Housing and related expenditures through the collection of property taxes. The Low- and Moderate-Income Housing Successor Fund was created due to the dissolution of the Chula Vista RDA. In accordance with Health and Safety Code Section 34176(b)(2), on February 1, 2012, all rights, powers, assets, liabilities, duties, and obligations of the Low- and Moderate-Income Housing Fund were transferred to the Low- and Moderate-Income Housing Successor Agency special revenue fund.
Development Impact Capital Projects Fund This fund was established as a depository of various development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a Statement of Net Position, a Statement of Revenues, Expenses and Changes in Fund Net Position, and a Statement of Cash Flows for each major Proprietary Fund and aggregate non-major proprietary funds.
A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide Financial Statements. The Citys internal service funds include three individual funds which provide services directly to other City funds. These areas of service include Fleet Management, Information Technology Replacement, and Workers Compensation.
Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Position presents increases (revenues) and decreases (expenses) in total Net Position. Under the accrual basis of accounting, 63 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
Proprietary Fund Financial Statements (Continued)
revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts.
Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses.
The City reports the following major proprietary funds:
Sewer Enterprise Fund This fund consists of several sub-funds that are used to account for sewer activities:
The Sewer Income Fund is a depository for all monies collected to cover the cost of connecting properties to the City's public sewer system. All monies received may be used only for the acquisition, construction, reconstruction, maintenance, and operation of sanitation or sewerage facilities.
The Trunk Sewer Capital Reserve Fund is used to account for sewerage facility participation fee received from owner or person making application for a permit to develop or modify use of any residential, commercial, industrial, or other property, which increases the volume of flow into the City sewer system.
All monies received shall be used for the enlargement of sewer facilities of the City to enhance efficiency of utilization and/or adequacy of capacity and for planning and/or evaluating any future proposals for area wide sewage treatment and/or water reclamation systems or facilities.
The Sewer Service Revenue Fund is a depository for all monies collected from the monthly sewer service charge. Monies in this fund may be used for construction, maintenance, or operation of sewer.
The Sewer Facility Replacement Fund is a depository for a portion of the revenue derived from the monthly sewer service charge. Monies in this fund shall be used solely for the purpose of refurbishment and/or replacement of sewerage facilities including related evaluation, engineering, and utility modification costs.
Sewer Development Impact Fees Fund This fund is a depository for sewer development impact fees (DIFs).
Development Services Fund This fund is a depository for a portion of developer fees and other development related activities.
Chula Vista Elite Athlete Training Center (CVEATC) Fund This fund is used to account for the CVEATCs activities in partnership with the CVEATC operator Elite Athlete Services (EAS).
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The Citys fiduciary funds represent custodial funds and private purpose trust funds.
Fiduciary fund types are accounted for according to the nature of the fund. The Citys custodial funds are used to account for money and property held by the City as custodian. They are also used to account for various assessment districts for which the City acts as an agent for debt service activities. The Citys private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities, and activities of the Successor Agency to the Chula Vista Redevelopment Agency. Its results of operations are presented on the Statement of Changes of Fiduciary Net Position. Both types of fiduciary funds follow the economic resources basis of accounting similar to proprietary funds.
64 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued) Fiduciary Fund Financial Statements (Continued)
The Successor Agency was created by the City of Chula Vista City Council (City Council) in August 2012.
It was established pursuant to Assembly Bill x1 26. Its purpose is to expeditiously wind down the affairs of the dissolved RDA. The governing body of the Successor Agency is comprised of the members of the Oversight Board selected by the County of San Diego, City of Chula Vista, school, and special districts. The Successor Agency has been included in the accompanying basic financial statements as a private purpose trust fund.
C. Encumbrances
Formal budgetary integration is employed as a management control device. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal budgetary integration.
Encumbrances outstanding at year-end do not constitute U.S. GAAP basis expenditures or liabilities because the commitments will be honored during the subsequent year. Therefore, the City has assigned a portion of its fund balance for future encumbrances.
D. Cash, Cash Equivalents, and Investments
The City pools its available cash for investment purposes. The City considers pooled cash and investment amounts, with original maturities of three months or less, to be cash equivalents.
Highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City reported its investments at fair value and the unrealized gain on investments amounted to $22,485,850 for the fiscal year ended June 30, 2023.
The statement of cash flows requires presentation of cash and cash equivalents. For the purposes of the statement of cash flows, the City considers all proprietary fund pooled cash and investments as cash and cash equivalents, as such funds are available to the various funds as needed.
Certain disclosure requirements, if applicable, for Deposits and Investment Risks in the following areas:
Interest Rate Risk
Credit Risk
o Overall
o Custodial Credit Risk
o Concentration of Credit Risk
Foreign Currency Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures.
E. Inventories and Prepaid items
Inventories are valued on an average-cost basis which are adjusted to annual physical counts or estimates under the consumption method of accounting and are recorded in the internal service fund. Prepaid items are items the City has paid in advance and will receive future benefit from. 65 ►
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►
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued)
F. Restricted Assets
Fiscal agents acting on behalf of the City hold investment funds arising from the proceeds of long-term debt issuances. The funds may be used for specific capital outlays or for the payment of certain bonds, certificate of participation or tax allocation bonds and have been invested only as permitted by specific State statutes or applicable City ordinance, resolution, or bond indenture. In addition, the City restricts cash deposits from developers that are refundable.
G. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either due to/from other funds or advances to/from other funds (i.e., the current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the Governmental-Wide Financial Statements as internal balances.
H. Capital Assets
Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available.
Donated capital assets are valued at their acquisition value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $10,000 for equipment and $50,000 for infrastructure.
Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows:
Buildings 50 years
Improvements other than buildings 50 years
Machinery and equipment 5-15 years
Infrastructure 30-75 years
The useful life of lease assets and subscription-based information technology agreements is the shorter of the life of the lease/agreement or the useful life of the underlying asset on its own. If the City has the option to purchase the assets at the end of the lease term and is likely to exercise that option, the useful life of the underlying asset will be used.
The City defines infrastructure as the basic physical assets that allow the City to function. The assets include:
Street system
Sewer system
Site amenities such as parking and landscaped areas used by the City in the conduct of its business
Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curbs and gutters, sidewalks, medians, streetlights, landscaping, and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems.
For all infrastructure systems, the City elected to use the Basic Approach for infrastructure reporting.
I. Compensated Absences
Government-Wide Financial Statements
For governmental and business-type activities, compensated absences are recorded as expenses and liabilities as incurred.
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CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) I. Compensated Absences (Continued)
Fund Financial Statements
In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the Citys policy to liquidate any unpaid compensated absences at June 30 from future resources, rather than currently available financial resources. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are expensed to the various funds in the period they are earned, and such funds share of the unpaid liability is recorded as a long-term liability of the fund.
J. Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Citys California Public Employees Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plans fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability is typically liquidated through the General Fund for the portion reported in governmental activities, and also through the respective enterprise fund in which it is allocated. For this report, the following timeframes are used:
Valuation Date June 30, 2021
Measurement Date June 30, 2022
Measurement Period July 1, 2021, to June 30, 2022
K. Other Post-Employment Benefits
For purposes of measuring the total OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense have been determined by an independent actuary. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. The total OPEB liability is typically liquidated through the General Fund for the portion reported in governmental activities, and also through the respective enterprise fund in which it is allocated.
Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022, to June 30, 2023
L. Long-Term Debt
Government-Wide Financial Statements
Long-term debt, including bonds, notes, financed purchases, leases and subscriptions are reported as liabilities in the appropriate funds. Bond premiums and discounts, as well as issuance costs relating to bond insurance, are deferred, and amortized over the life of the bonds using the effective interest method. Bonds payable is reported net of the applicable premium or discount.
Fund Financial Statements
The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. 67 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued)
M. Leases
City as Lessee
The City is a lessee for noncancellable leases of land, buildings, and equipment. The City recognizes a lease liability and an intangible right-to-use leased asset (lease asset) in the Government-wide, Proprietary, and Fiduciary Fund financial statements. Lease assets are reported with depreciable capital assets and lease liabilities are reported with long-term liabilities. At the commencement of a lease, the City measures the lease liability at the present value of payments expected to be made over the course of the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over the remaining lease term.
City as Lessor
The City is a lessor for noncancellable leases of portions of buildings. The City recognizes a lease receivable and a deferred inflow of resources in the Government-wide, Governmental, and Proprietary Fund financial statements.
At the commencement of a lease, the City measures the lease receivable at the present value of payments expected to be received over the course of the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the lease term.
N. Subscription Based Information Technology
The City is the customer or buyer of subscription contracts for noncancellable use of vendor software. The City recognizes a subscription liability and an intangible right-to-use subscription asset in the Government-wide, Proprietary, and Fiduciary Fund financial statements. Subscription assets are reported with depreciable capital assets and subscription liabilities are reported with long-term liabilities. At the commencement of a subscription, the City measures the subscription liability at the present value of payments expected to be made over the course of the subscription contract term. Subsequently, the subscription liability is reduced by the principal portion of subscription payments made. The subscription asset is measured as the initial amount of the subscription liability, adjusted for subscription payments made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the subscription asset is amortized on a straight-line basis over the remaining subscription contract term.
O. Deferred Outflows/Inflows of Resources
In addition to assets, the financial statements will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has four items that qualify for reporting in this category, which are reported in the government-wide statement of net position.
One item is the deferred charge on refunding reported on the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The second item is the deferred outflows related to pensions, which represents the Citys pension contributions made subsequent to the measurement date, change of assumptions, difference between expected and actual experience, and the net difference between projected and actual earnings on plan investments. The third item is related to OPEB, which represents the change of assumptions and difference between expected and actual experience. The fourth item is related to leases and represents the cumulative impact of GASB 87 implementation.
68 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) O. Deferred Outflows/Inflows of Resources (Continued)
In addition to liabilities, the financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and so will not be recognized as an inflow of resources (revenue) until that time. The City has three types of deferred inflows of resources, one of which arises only under a modified accrual basis. Accordingly, the first item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from two sources: taxes and grant receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available.
The second item is deferred inflows related to pensions and OPEB reported in the statement of net position. These inflows are the results of changes in assumptions and differences between expected and actual experiences, and the net difference between projected and actual earnings on plan investments which are deferred and amortized over the expected average remaining service lifetime. The third item is related to the future inflows of lease revenues.
P. Property Taxes
The County of San Diego, California (County) bills and collects property taxes and remits them to the City according to a payment schedule established by the County. The Countys tax calendar is from July 1 to June 30.
Property taxes attach as a lien on property on January 1. Taxes are levied on July 1, based on the assessed values as of the lien date, and are payable in two installments: November 1 and February 1 of each year. Property taxes become delinquent on December 10, and April 10, for the first and second installments, respectively.
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the property tax rate no more than 2% per year or the current CPI, whichever is less. The City receives a share of this basic tax levy proportionate to what it received during the years 1980-1981.
Property tax revenue is recognized in the fiscal year for which the taxes have been levied, provided the taxes are received within 60 days after the end of the fiscal year. Property taxes received after this date are not considered available as a resource that can be used to finance the current year operations of the City and, therefore, are not recorded as revenue until collected.
No allowance for doubtful accounts was considered necessary.
Q. Net Position
In governmental-wide and proprietary fund financial statements, Net Position are categorized as follows:
Net Investment in Capital Assets This component of net position co nsists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of those assets.
Restricted This component of net position consists of re stricted assets reduced by liabilities and deferred inflows of resources related to those assets.
Unrestricted This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.
When expenses are incurred for purposes for which both restricted and unrestricted Net Position are available, the Citys policy is to apply restricted Net Position first, then unrestricted Net Position as they are needed.
69 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) R. Fund Balances
In governmental fund financial statements, fund balances are categorized as follows:
Nonspendable Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, and items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds.
Restricted Restricted fund balances encompass the portion of net fund resources subject to externally enforceable legal restrictions. This includes externally imposed restrictions by creditors, such as through debt covenants, grantors, contributors, laws, or regulations of other governments, as well as restrictions imposed by law through constitutional provisions or enabling legislation.
Committed Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the City imposes upon itself at its highest level of decision making, normally the governing body, and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City that can, by adoption of an ordinance or resolution prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation imposed by the ordinance or resolution remains in place until a similar action is taken (the adoption of another ordinance or resolution) to remove or revise the limitation.
Assigned Assigned fund balances encompass the portion of net fund resources reflecting the governments intended use of resources. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. City Council has by resolution, authorized the Director of Finance to assign fund balances. City Council may also assign fund balance as it does when appropriating fund balance to cover a gap between estimated revenue and appropriations in the subsequent years appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action is essential to either remove or revise a commitment.
Unassigned This amount is for any portion of the fund balances that do not fall into one of the above categories. This classification includes the residual fund balance for the General Fund. It also includes the negative residual balance for any other governmental fund that cannot be eliminated by offsetting assigned fund balance amounts.
Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the Citys policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last.
S. Spending and Reserve Policy
Government-Wide Financial Statements and the Proprietary Fund Financial Statements
When an expense is incurred for purposes for which both restricted and unrestricted Net Position are available, the Citys policy is to apply restricted Net Position first.
70 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) S. Spending and Reserve Policy (Continued)
Governmental Fund Financial Statements
When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned.
Pension & OPEB Reserve Fund Policy
In November 2020, the City Council adopted a resolution adopting the Pension & OPEB (Other Pension Employment Benefits) Reserve Fund Policy and amending the General Fund Reserve Policy to include the allocation methodology to the General Fund reserve categories: General Fund Operating Reserve, Economic Contingency Reserve, and Catastrophic Event Reserves.
The General Fund Operating Reserve represents unrestricted resources available for appropriation by the City Council to address extraordinary needs of an emergency nature of annual General Fund budgeted expenditures (excluding Measure A and P Sales taxes).
The Economic Contingency Committed Balance represents monies set aside to mitigate service impacts during a significant downturn in the economy which impacts City revenues such as sales tax, property tax, business license tax, etc. funded at minimum of 5% of the General Fund of annual General Fund budgeted expenditures (excluding Measure A and P Sales taxes).
The Catastrophic Event Reserves are monies set aside to fund unanticipated expenditures related to a major disaster in the City and are associated with the Citys Disaster Preparedness Program funded at 3% of the General Fund of annual General Fund budgeted expenditures (excluding Measure A and P Sales taxes).
The Pension & OPEB Reserve Fund Policy (PRF) established an Irrevocable Section 115 Trust where all PRF contributions will be made to cover the following: repayment of future CalPERS unfunded liabilities in part or whole; establishment of an OPEB reserve fund; to pay off any outstanding Pension Obligation Bonds; and any other unanticipated pension related costs or charges. Upon meeting the 15% General Fund Operating Reserves 75% of all future surplus funds shall be transferred to the PRF while the remaining 25% is allocated to the Economic Contingency Reserves and Catastrophic Event reserves in accordance with the General Fund Reserve Policy. In the event all three General Fund reserve accounts are fully funded at the stated policy percentage, 100% of surplus funds will be transferred to the PRF until it reaches 15% of annual General Fund budgeted expenditures (excluding Measure A and P Sales taxes).
`Measure A Reserve Fund Policy
In May 2022, City Council adopted a resolution adopting the Measure A Fund Economic Contingency Reserve Fund Policy. This policy is established to avoid any impacts to the General Fund due to temporary sales tax revenue shortfalls, and to establish the reserves necessary to meet known and unknown future obligations for the Citys Police and Fire Departments. It is funded by 16% of Measure A funds annual operating budget.
Enterprise Fund Reserve Policies
The City maintains reserves for the following enterprise funds: Sewer Service Revenue Fund and Ambulance Transport System Enterprise Fund to help mitigate the impact of economic fluctuations on revenues, fund unforeseen expenditure requirements, provide minimum levels of cash balances, and avoid the need to borrow for cash management purposes.
71 •
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CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 1 Reporting Entity and Summary of Significant Accounting Policies (Continued) T. Use of Estimates
The preparation of basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures. Actual results could differ from these estimates and assumptions.
U. Changes in Accounting Principles and New GASB Pronouncements
During the year ended June 30, 2023, the City adopted the following accounting standard issued by the Governmental Accounting Standards Board (GASB):
1. GASB Statement No. 91, Conduit Debt Obligations
The requirements of this Statement will improve financial reporting by eliminating the existing option for issuers to report conduit debt obligations as their own liabilities, thereby ending significant diversity in practice. The clarified definition will resolve stakeholders uncertainty as to whether a given financing is, in fact, a conduit debt obligation. Requiring issuers to recognize liabilities associated with additional commitments extended by issuers and to recognize assets and deferred inflows of resources related to certain arrangements associated with conduit debt obligations also will eliminate diversity, thereby improving comparability in reporting by issuers. Revised disclosure requirements will provide financial statement users with better information regarding the commitment issuers extend and the likelihood that they will fulfill those commitments. That information will inform users of the potential impact of such commitments on the financial resources of issuers and help users assess issuers roles in conduit debt obligations.
2. GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements
The requirements of this Statement will improve financial reporting by establishing the definitions of PPPs and APAs and providing uniform guidance on accounting and financial reporting for transactions that meet those definitions. That uniform guidance will provide more relevant and reliable information for financial statement users and create greater consistency in practice. This Statement will enhance the decision usefulness of a governments financial statements by requiring governments to report assets and liabilities related to PPPs consistently and disclose important information about PPP transactions. The required disclosures will allow users to understand the scale and important aspects of a governments PPPs and evaluate a governments future obligations and assets resulting from PPPs.
3. GASB Statement No. 96, Subscription-Based Information Technology Arrangements
The requirements of this Statement will improve financial reporting by establishing a definition for SBITAs and providing uniform guidance for accounting and financial reporting for transactions that meet that definition. That definition and uniform guidance will result in greater consistency in practice. Establishing the capitalization criteria for implementation costs also will reduce diversity and improve comparability in financial reporting by governments. This Statement also will enhance the relevance and reliability of a governments financial statements by requiring a government to report a subscription asset and subscription liability for a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand the scale and important aspects of a governments SBITA activities and evaluate a governments obligations and assets resulting from SBITAs.
72 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 2 Reconciliation of Government-Wide and Fund Financial Statements
A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government-Wide Statement of Net Position
The governmental fund balance sheet includes a reconciliation between fund balance total governmental funds and net position governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds. The details of this $75,726,137 are as follows:
Long-term receivables 60,811,053$
Development impact fees 1,192,354
Miscellaneous revenues 13,722,730
Total other long-term assets 75,726,137$
B. 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 a reconciliation between net changes in fund balances total governmental funds and change in net position 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 these assets is allocated over their estimated useful lives and reported as depreciation expense in the current period. The details of this $23,825,811 difference are as follows:
Capital outlay 60,668,962$
Depreciation ex pense (36,836,651)
Total other long-term assets 23,832,311$
C. Explanation of Certain Differences Between the Proprietary Fund Statement of Net Position and the Government-Wide Statement of Net Position
The proprietary fund statement of net position includes a reconciliation between net position total enterprise funds and net position of business-type activities as reported in the government-wide statement of net position.
The description of the sole element of that reconciliation is adjustment to report the cumulative internal balance for the net effect of the activity between the internal service funds and the enterprise funds over time. The details of the $44,859 difference are as follows:
Internal receivable representing charges in excess of cost to business-type activities - prior years 401,428$
Internal receivable representing charges in excess of cost to business-type activities - current year 42,431
Net adjustment to increase net position - total enterprise funds to arrive at net position - business-type activities 443,859$
73 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 3 Stewardship, Compliance, and Accountability
A. Deficit Fund Equity
At June 30, 2023, the Sewer Development Impact Fees Fund and the Development Services Fund, both major proprietary funds, reported deficits in net position in the amounts of $12,737,646 and $12,077,117, respectively.
The reason for the deficit in the Sewer Development Impact Fees Fund is the long-term advance payable in the amount of $18,174,656 to the General Fund discussed in Note 8. The deficit is expected to be eliminated in future years, as repayments to the General Fund are made on the advance. The reason for the deficit in the Development Services Fund is the allocation of the Fund s share of the 2021 Pension Obligation Bonds issued during the 2021 fiscal year, with an outstanding balance in the amount of $16,779,321 as of June 30, 2023. The deficit is expected to be eliminated in future years as the revenue is recognized as a reduction to net pension liability.
At June 30, 2023, the following non-major funds had deficit fund equity:
Fund Type Funds Deficit
Special Revenue Transportation Sales Tax 633,808$
Special Revenue Traffic Safety 4,734
Capital Projects Residential Construction Tax 1,310,131 Capital Projects Bicycle Facility 4,640
Capital Projects Other Transportation Program Fund 475,921 Proprietary Living Coast Discovery Center 798
Transportation Sales Tax The Transportation Sales Tax Fund had an accumulated deficit of $633,808 due to the timing of the receipt of the Citys allocation of SANDAGs ½ cent sales tax levy compared to disbursements.
The City expects to eliminate this deficit through future revenues.
Traffic Safety The Traffic Safety Fund had an accumulated deficit of $4,734 as a result of fair market on investment losses and interfund transfer to the General Fund to cover administrative expenditures. The deficit is expected to be eliminated through future revenues.
Residential Construction Tax The Residential Construction Tax Fund had an accumulated deficit of $1,313,641 due to debt service payment that are expected to be eliminated through future revenues.
Bicycle Facility The Bicycle Facility Fund had an accumulated deficit of $4,460 due to non-reimbursable expenditures that were incurred. This fund is scheduled to be consolidated with the General Fund and closed in fiscal year 2024.
Other Transportation Program The Other Transportation Program Fund had an accumulated deficit of $475,920 due the timing of the reimbursement of grant revenues for the capital expenditures incurred.
Living Coast Discovery Center The proprietary Living Coast Discovery Center Fund had an accumulated deficit of $798 due to the fair market value loss on investments incurred in the current year. This deficit is expected to be eliminated through future revenues.
74 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 4 Cash and Investments
The following is a summary of pooled cash and investments, including cash and investments with fiscal agents at June 30, 2023.
Fiduciary Funds
Governmental Business-Type Statement of Net
Activities Activities Subtotal Position Total
Cash and investments 421,398,523$ 171,059,037$ 592,457,560$ 12,365,016$ 604,822,576$ Restricted cash and investments:
Held by City 7,735,990 - 7,735,990 - 7,735,990 Held by fiscal agents 24,965,589 - 24,965,589 130,432,730 155,398,319 Total restricted cash and investments 32,701,579 - 32,701,579 130,432,730 163,134,309 Total cash and investments 454,100,102$ 171,059,037$ 625,159,139$ 142,797,746$ 767,956,885$ Government-Wide Statement of Net Position
Cash, cash equivalents and investments consisted of the following at June 30, 2023:
Petty Cash 9,789$
Deposits with financial institutions 20,086,109
Investments 610,649,983
Investments held by fiscal agents 137,211,004
Total cash and investments 767,956,885$
A. Deposits
The carrying amount of the Citys cash deposits were $20,086,109 on June 30, 2023. Bank balances before reconciling items were $21,688,422 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the Citys name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the Citys cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the Citys total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
75 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 4 Cash and Investments (Continued)
B. Investments
As of June 30, 2023, the City had the following investments and maturities:
Investment Type Fair Value 1 year or fewer 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years LAIF 71,047,461$ 71,047,461$ -$ -$ -$ -$ Time deposits 310,000 310,000 - - - - San Diego County Investment Fund 23,577,663 23,577,663 - - - - United States Treasuries 45,683,045 35,864,530 2,967,780 3,125,160 3,725,575 - Federal agency bonds 195,833,020 55,175,910 67,113,161 50,184,346 16,490,713 6,868,890 Municipal bonds 75,132,672 18,093,102 16,618,419 23,281,256 11,499,643 5,640,252 Supranationals 17,222,078 1,845,793 5,714,880 6,121,685 3,539,720 - Asset-backed securities - - - - - - Medium-term corporate notes 136,500,331 43,404,965 42,318,785 30,270,803 20,505,778 - Certificates of deposit 20,528,199 9,500,490 10,771,284 - - 256,425 Placement service deposits 4,307,974 4,307,974 - - - - Money market funds 20,507,540 20,507,540 - - - - Held by bond trustee:
Mutual funds 123,109,266 123,109,266 - - - - LAIF 14,101,738 14,101,738 - - - - Total 747,860,987$ 420,846,432$ 145,504,309$ 112,983,250$ 55,761,429$ 12,765,567$ Investment Maturities
Investments Authorized by the California Government Code and the Citys Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the Citys investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Citys investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the Citys investment policy.
Authorized Investment T ype
Maximum
Maturity
Maximum
Percentage of
Portfolio*
Maximum
Investment in
O ne Issuer
Bankers' Acceptance 180 days 40% 30%
Negotiable Certificates of Deposits 5 years 30% None
Commercial Paper 270 days 25% 10%
State and Local Agency Bond Issues 5 years None None
U.S. T reasury Obligations 5 years None None
U.S. Agency Securities 5 years None None
Repurchase Agreement 1 year None None
Reverse-Purchase Agreements 92 days 20% None
Medium-T erm Corporate Notes 5 years 30% 10%
T ime Certificates of Deposits 5 years None None
Money Market Funds N/A 20% 10%
San Diego County T reasurer's Pooled Money Fund N/A None None Local Agency Investment Fund (LAIF) N/A None $75 Million** Shares of Beneficial Interest issued by a JPA N/A None None Asset Backed Securities 5 years 20% None
Supranationals 5 years 30% None
Placement Service Deposits 5 years 30% None
* Excluding amounts held by bond trustee that are not subject to California Government ** Maximum is $75 million per account
76 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 4 Cash and Investments (Continued)
B. Investments (Continued)
Investments Authorized by Debt Agreements
Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement rather than the general provisions of the California Government Code or the Citys investment policy. The table below identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Authorized Investment T ype
Maximum
Maturity
Maximum
Percentage of
Portfolio
Maximum
Investment in
O ne Issuer
U.S Treasury Obligations None None None
Federal Home Loan Mortgage Corporation None None None
Farm Credit Banks None None None
Federal Home Loan Banks None None None
Federal National Mortgage Association None None None
Student Loan Marketing Association None None None
Financing Corporation None None None
Resolution Funding Corporation None None None
Certificates of Deposits, T ime Deposits and Bankers' Acceptance 180 or 365 days None None Commercial Paper 270 days None None
Money Market Funds None None None
State Obligations None None None
Municipal Obligations None None None
Repurchase Agreements None None None
Investment Agreements None None None
Local Agency Investment Fund (LAIF) None None None
C. Risks Disclosures
Interest Rate Risk
As a means of limiting its exposure to fair value losses arising from rising interest ra tes, the Citys investment policy provides that final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2023, the Citys pooled cash and investments had the following maturities:
Maturity
Percentage of
Investment
Less than one year 56.3%
1 - 2 years 19.5%
2 - 3 years 15.1%
3 - 4 years 7.4%
4 - 5 years 1.7%
The weighted average maturity of the portfolio was 1.2 years.
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. To be eligible to receive City money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than "satisfactory" in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California's communities, including low-and moderate-income neighborhoods.
77 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 4 Cash and Investments (Continued)
C. Risks Disclosures (Continued)
The Citys investments are rated by the nationally recognized statistical rating organizations as follows:
Standard &
Investment Type Fair Value Moody's Poor's
LAIF 85,149,199$ Not rated Not rated
Time deposits 310,000 Not rated Not rated
San Diego County Investment Fund 23,577,663 Not rated Not rated United States Treasuries 45,683,045 Exempt Exempt
Federal agency bonds 195,833,020 Exempt Exempt
Municipal bonds 75,132,672 A1 to Aa1 A to AA+
Supranationals 17,222,078 Aaa AAA
Asset-backed securities - Aaa AAA Medium-term corporate notes 136,500,331 A3 to Aaa BBB+ to AAA Certificates of deposit 20,528,199 Not rated Not rated Placement service deposits 4,307,974 Not rated Not rated Money market funds 20,507,540 Not rated Not rated
Mutual funds 123,109,266 Not rated Not rated
Total 747,860,987$
Custodial Credit Risk
Custodial credit risk is the risk that, in the event of the failure of the counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. All securities, with the exception of LAIF and other pooled investments, are held by a third-party custodian (BNY Western Trust). BNY is a registered member of the Federal Reserve Bank.
Concentration of Credit Risk
The Citys investment policy contains limitations on the amount that can be invested in any one issuer, in accordance with the limitations stipulated by the California Government Code. For the fiscal year ended June 30, 2023, the City had no investments in any one issuer that exceeded percentage of portfolio limitations set forth by either the Citys investment policy or the California Government Code.
D. Investments in Local Agency Investment
The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California.
As of June 30, 2023, the City had $85,149,199 invested in LAIF. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2023, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants total aggregate amortized cost by total aggregate fair value. The credit quality rating of LAIF is unrated as of June 30, 2023. There are no limitations or restrictions on participant withdrawals from LAIF.
78 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 4 Cash and Investments (Continued)
E. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City had the following recurring fair value measurements as of June 30, 2023:
Investment Type Totals Level 1 Level 2 Uncategorized
LAIF 71,047,461$ -$ -$ 71,047,461$ Time deposits 310,000 - 310,000 - San Diego County Investment Fund 23,577,663 - - 23,577,663 United States Treasuries 45,683,045 45,683,045 - - Federal agency bonds 195,833,020 - 195,833,020 - Municipal bonds 75,132,672 - 75,132,672 - Supranationals 17,222,078 - 17,222,078 - Asset-backed securities - - - - Medium-term corporate notes 136,500,331 - 136,500,331 - Certificates of deposit 20,528,199 - 20,528,199 - Placement service deposits 4,307,974 - - 4,307,974 Money market funds 20,507,540 - - 20,507,540 Held by bond trustee:
Mutual funds 123,109,266 - - 123,109,266 LAIF 14,101,738 - - 14,101,738 Total 747,860,987$ 45,683,045$ 445,526,300$ 256,651,642$ U.S. Treasury Notes classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. U.S. Agency Securities, Corporate Notes, Asset Backed Securities and Time Deposits classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes or specified fair market value factors.
Note 5 Receivables
A. Taxes Receivable
At June 30, 2023, the City had the following taxes receivable:
Governmental Fiduciary
Activities Funds Total
Sales Tax 17,868,207$ -$ 17,868,207$ Property Tax 662,030 - 662,030 Highway Users Tax 1,699,432 - 1,699,432 Franchise Fee Tax 3,030,041 - 3,030,041 Special Assessments - 100,134 100,134 Other Taxes 1,822,029 - 1,822,029 Total 25,081,739$ 100,134$ 25,181,873$
79 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 5 Receivables (Continued)
B. Loans Receivable
At June 30, 2023, the City had the following loans receivable, including principal and accrued interest:
Principal Interest Total
South Bay Community Services (Trolley Trestle, M uncey M anor, CNV I, CNII, NCV II) 2,022,483$ 2,404,804$ $ 4,427,287 Cordova and Trolley Terrace Apartments (Cordova Trolley, LP) 2,672,511 411,891 3,084,402 St. Regis Park (Chelsea Investment Corp) 1,232,822 115,967 1,348,789 Chula Vista Rehabilitation CHIP Loans 869,658 91,308 960,966 Park Village Apts (Civic Center Barrio Housing Corporation) 95,649 - 95,649 Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000 4,357,732 10,037,732 Brisa del M ar (M ain Plaza, LP) 1,800,000 793,440 2,593,440 Seniors on Broadway (M AAC Project) 3,511,194 1,806,479 5,317,673 The Landings II (Chelsea Investment Corp) 8,182,824 1,995,013 10,177,837 First Time Home Buyers Program 3,100,605 230,465 3,331,070 NSP Rental Housing Program 1,000,000 253,710 1,253,710 Lofts on Landis 2,000,000 548,486 2,548,486 Duetta Apartments (F Street Family CIC, LP) 2,068,000 449,424 2,517,424 Volta Senior Apartments (G Street Seniors CIC, LP) 932,000 199,658 1,131,658 Anita Street Apartments (Wakeland- Anita LP) 5,195,165 336,476 5,531,641 Deferred development impact fees 5,965,425 487,864 6,453,289 46,328,336$ 14,482,717$ 60,811,053$ Governmental Activities
South Bay Community Services
In 1998, the former Chula Vista Redevelopment Agency (RDA) and City of Chula Vista entered into several loan agreements with South Bay Community Services, a California non-profit public benefit corporation. Prior years loan was made to South Bay Community Services for the purpose of purchasing several properties throughout the City of Chula Vista, including Concord Way (1-unit) and Trolley Trestle (11-unit). These projects are to provide housing to very low-income families. Deeds of trust and assignments of rent secure the notes. Principal and interest are payable annually out of any and all residual receipts derived from the property and/or operation of the property. Interest accrues annually on the unpaid balance with rates ranging from 3% to 6%. At June 30, 2023, the outstanding balance of the loan was $4,427,287, which included an interest accrual of $2,404,804.
Cordova and Trolley Terrace Apartments- (Cordova Trolley, LP)
In January 2019, the Housing Authority and the Cordova Trolley, LP (Developer) entered into a loan agreement to refinance two scattered site rental housing developments at 1280 E J Street (40-unit) and 750 ADA Street (18-unit). The developer partially repaid the outstanding accrued interest of the previous loan in the amount of $200,000 and carried forward the remaining balance of $2,672,511 as a new loan on the Project. The project provides affordable housing to very-low and low-income households for an additional 55-years. The amended and restated promissory note is secured by a deed of trust and will accrue 3.15% interest compounding annually.
Residual receipt payments (if any) will be applied towards the outstanding loan balance until the loan is paid in full. At June 30, 2023, the outstanding balance of the loan was $3,084,402, which included an interest accrual of $411,891.
St. Regis Park (Chelsea Investment Corporation)
In 2000, the former RDA entered into a loan agreement with Chelsea Investment Corporation for the acquisition and rehabilitation of the 119-unit multi-family housing project (formerly known as Pear Tree Apartments) at 1025 Broadway. In June 2019, the developer repaid the outstanding principal balance of the previous loan in the
80 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 5 Receivables (Continued)
B. Loans Receivable (Continued)
amount of $1,387,152 and carried forward the accrued interest of $1,232,822 as a new loan amount. The project will remain affordable to very-low and low-income households for an additional 55-years. The amended and restated promissory note is secured by a deed of trust and will accrue 2.76% interest compounding annually.
Residual receipt payments (if any) will be applied towards the outstanding loan balance until the loan is paid in full. At June 30, 2023, the outstanding balance of the loan was $1,348,789, which included an interest accrual of $115,967.
Chula Vista Rehabilitation CHIP Loans
The Chula Vista Rehabilitation Community Housing Improvement Program (CHIP) is under the direct control of the Housing Authority acting as the Successor Housing Entity for those loans that were funded using Low- and Moderate-Income Housing Funds. These loans provide funding to assist owner occupied or mobile homeowners with assistance to make health and safety repairs to their dwelling unit. CHIP loans funded by CDBG, or HOME funds are also managed by the Housing Authority. CHIP offers deferred and low interest rate home improvement loans to qualified borrowers residing within a target area. The rate terms vary from 0 to 5% deferred interest loans to forgivable loans for mobile homeowners. Loan repayments are re-deposited into the program cash accounts and are redistributed as future loans. At June 30, 2023, the outstanding balance of the loan was $960,966, which included an interest accrual of $91,308.
Park Village Apartments (Civic Center Barrio Housing Corporation) In 1991, the former RDA entered into a loan agreement with the Civic Center Barrio Housing Corporation, a California non-profit public benefit corporation. The loan was made for the purchase of land and the development of a 28 - unit low-income housing project. During 1992, the loan was assigned to Park Village Apartments Ltd., a California limited partnership in which Civic Center Barrio Housing Corporation is the managing general partner. The loan is secured by a deed of trust on the property and assignment of rents. Principal and interest are payable monthly. In 2009, an amendment to the loan was entered into changing the interest from 5% to 3% per annum on the unpaid principal balance of the note. It also required monthly payments based on a 24-year amortization schedule with the entire balance paid by December 31, 2033. At June 30, 2023, the outstanding balance of the loan was $95,649 with no accrued interest outstanding.
Los Vecinos (Wakeland Housing and Development Corporation) In 2008, the former RDA entered into a loan agreement with Wakeland Housing and Development Corporation to assist the borrower in constructing 41 affordable multi-family rental housing units for occupancy by extremely low, very low, and low-income households. The loan amount of $5,680,000 was funded by the Low- and Moderate-Income Housing Fund. The loan bears an interest rate of 5% per annum. Principal and interest payments will be made on an annual basis out of a fund equal to 50% of the residual receipts for years 1-30 and 75% of the residual receipts for years 31-54, until 55 years from the date the improvements are placed in service, at which time, all principal and unpaid interest is due and payable. The improvements were placed in service on February 7, 2008. At June 30, 2023, the outstanding balance of the loan was $10,037,732, which included an interest accrual of $4,357,732.
Brisa del Mar (Main Plaza, LP)
In 2003, the former RDA and City entered into a loan agreement with Main Plaza, LP to assist in acquiring and improving certain real property for occupancy by very low, low, and moderate-income households. The loan bears an interest rate of 3% per annum. The loan is due and payable on the date that is 55 years from the date of the Citys issuance of the Certificate of Completion, which is in 2061. At June 30, 2023, the outstanding balance of the loan was $2,593,440 which included an interest accrual of $793,440.
81 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 5 Receivables (Continued)
B. Loans Receivable (Continued)
Seniors on Broadway (MAAC Project)
The City entered into a loan agreement with Seniors on Broadway, Limited Partnership to assist in acquiring and improving certain real property for occupancy by very low, low, and moderate-income households. The loan bears an interest rate of 3% per annum. The loan is due and payable on the date that is 55 years from the date of the Citys issuance of the Certificate of Completion. At June 30, 2023, the outstanding balance of the loan was $5,317,673, which included an interest accrual of $1,806,479.
The Landings II (Chelsea Investment Corporation)
In July 2010, the former RDA and City entered into a loan agreement with Landings II, L.P. to assist the borrower in constructing 143 affordable multifamily rental housing units for occupancy by very low- and low-income households. The loan bears an interest rate of 3.6% per annum and requires monthly payments based on a 25-year amortization schedule. At June 30, 2023, the outstanding balance of the loan was $10,177,837, which included an interest accrual of $1,995,013.
First Time Home Buyers Program
The Chula Vista First-Time Homebuyer Program is under the direct control of the City and its Housing Authority.
The Programs is funded through U.S. Department of Housing and Urban Development HOME Investment Partnership Act and Neighborhood Stabilization Program funds. Cal Home funds from the State of California Department of Housing and Community Development are also used to fund loans. The Program is currently administered by Springboard CDFI, (formerly known as Community Housing Works Realty and Lending). The program offers low interest loans or equity share deferred gap financing loans to qualified borrowers. Loan repayments are re-deposited into the program and are redistributed as future loans. At June 30, 2023, the outstanding balance of the loan was $3,331,070, which included an interest accrual of $230,465.
NSP Rental Housing Program
The City entered into two separate loan agreements with San Diego Community Housing Corporation to acquire and rehabilitate rental housing for very low-income households. The loans are secured by promissory notes and a deed of trusts. The outstanding principal and interest amount of the loan will be repaid over fifty-five (55) years and shall accrue at the simple interest rate of three (3%) percent per annum. Principal and interest are payable annually out of a fund equal to 50% of residual receipts derived from the property and/or operation of the property.
At June 30, 2023, the outstanding balance of the loan was $1,253,710, which included an interest accrual of $253,710.
Lofts on Landis
The City has adopted a Housing Element of the General Plan which sets forth the objective of providing balances and varied housing opportunities throughout the City to satisfy needs and desires of various age, income, and ethnic groups of the community. The Housing Authority f ound that the Citys financial participation in the development of the Landis Project will be a sound inve stment based upon the Developer ability to effectively service the Citys housing needs and priorities expressed in the housing Element and Consolidated plan. At June 30, 2023, the outstanding balance of the loan was $2,548,486, which included an interest accrual of $548,486.
Duetta Apartments (F Street Family CIC, LP)
In 2016, the City entered into a loan agreement with F Street Family CIC, LP to assist to assist in the construction and permanent financing of affordable multifamily apartments with 86 deed restricted units for occupancy by extremely low, very low- and lower-income households. Loans are in the principal amount of $800,000 from the 82 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 5 Receivables (Continued)
B. Loans Receivable (Continued)
Citys federal HOME funds, $372,660 from the Citys Balanced Communities In-Lieu funds, and $895,340 from Low- and Moderate-Income Housing Fund. The loan bears an interest rate of 3% simple interest per annum for a 55-year period. Payment of principal and interest is made on an annual basis out of a fund equal to 50% of the residual receipts. The outstanding principal and accrued interest on the loan is to be repaid by December 31, 2072. Fund balance has been restricted in the Federal, State, and Local Grants Special Revenue Fund and in the Low- & Moderate-Income Housing Successor Special Revenue Fund. At June 30, 2023, the outstanding balance of the loans were $2,517,424, which included an interest accrual of $449,424.
Volta Senior Apartments (G Street Seniors CIC, LP)
In 2016, the City entered into a loan agreement with G Street Senior CIC, LP to assist to assist in the construction and permanent financing of affordable multifamily apartments with 122 deed restricted units for occupancy by extremely low-, very low- and lower-income households. The loan amount of $932,000 was funded by the Low- and Moderate-Income Housing Fund. The loan bears an interest rate of 3% simple interest per annum for a 55- year period. Payment of principal and interest is made on an annual basis out of a fund equal to 50% of the residual receipts. The outstanding principal and accrued interest on the loan is to be repaid by December 31, 2072. Fund balance has been restricted in the Low- & Moderate-Income Housing Successor Special Revenue Fund. At June 30, 2023, the outstanding balance of the loans were $1,131,658, which included an interest accrual of $199,658.
Anita Street Apartments (Wakeland- Anita LP)
In 2017 and 2018, the Housing Authority entered into amended loan agreements with Wakeland Anita LP to assist in the acquisition of land and pre-development of an affordable multifamily apartment development known as Anita Street Apartments with up to 72 possible deed restricted units for occupancy by extremely low, very low- and lower-income households. This loan supports the proportionate share of costs for 30% and 45% AMI (area median income) units in the project. The total loan amount of $5,195,165 was made using low- and moderate- income housing funds. No interest accrues on the loan during the predevelopment phase of the Project. Upon completion of the predevelopment phase, the loan bears an interest rate of 3% simple interest per annum for a 55- year period. At June 30, 2023, the outstanding balance of the loans were $5,531,641, which includes an interest accrual of $336,476.
Deferred development impact fees
The DIF Deferral Community Facilities District (CFD 17-I) was established to promote development in specified areas of the City known as Western Chula Vista by deferring specific development impact fees for projects that met the specific criteria outlined in the CFD formation documents. The primary area included within the CFD plan was land west of the I-5 freeway to spur on early development in preparation for the new Bayfront project, as well as land in the portion of the City between Interstate 5 and Interstate 805, including the Palomar Gateway and Urban Core Specific Planning Areas and the Auto Park located East of the Interstate 805. As the Rate and Method of Apportionment defines, developers can defer their Development Impact Fees up to ten years or as otherwise defined in the CFD documents. Upon issuance of the Certificate of Occupancy (COO), the City calculates interest on an annual basis, and it is included as part of the long-term receivable. At June 30, 2023, the outstanding balance of the loans were $6,453,289 which includes interest accrual $487,864.
83 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 6 Interfund Balances and Transactions
Due to/Due from other funds
At June 30, 2023, interfund receivables and payables were as follows:
Due from Other
Funds
CV Elite Athlete
Training Center
Nonmajor
Governmental
Funds Total
General Fund 451,805$ 1,867,024$ 2,318,829$
Current interfund balances arise in the normal course of operations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year.
Long-Term Advances
At June 30, 2023, balances were as follows:
Sewer Other
Development Enterprise
Impact Fees Funds Total
Advances to Other Funds:
General -$ 2,340,621$ 2,340,621$ Sewer Fund 18,174,656 - 18,174,656 Total 18,174,656$ 2,340,621$ 20,515,277$
Advances from Other Funds:
The City Council authorized and set terms for loans from the Trunk Sewer fund to Salt Creek for $16,598,381, to the Storm Drain fund for $744,612, and $803,331 from the Sewer Facility fund for capital improvement projects, via Resolution 2015-035. In accordance with Council Policy No. 220-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $18,174,656 at June 30, 2023, of which all $18,174,656 is outstanding from the Sewer Fund to the Sewer Development Impact Fees Fund and the portion due from the Sewer Fund to the Storm Drain Fund has been paid in full.
The City Council authorized and set terms for loans from the General Fund to Transport Enterprise nonmajor enterprise fund for $4,881,710, via Resolution 2020-152. In accordance with Council Policy No. 220-06, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $2,340,621 at June 30, 2023.
84 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 6 Interfund Balances and Transactions (Continued) Transfers In/Out
Interfund transfers for the year ended June 30, 2023, were as follows:
Federal, Other CV Elite Other
State, and Governmental Development Athlete Enterprise Internal Transfers Out G eneral Local Grants Funds Sewer Fund Services Fund Training Ctr Funds Service Funds Total General -$ 491,287$ 34,705,118$ -$ 448,729$ 126,526$ 173,762$ 313,760$ 36,259,182$ Federal, State and Local Grants 1,620,972 - 1,775,899 53,806 78,420 - 58,000 8,000 3,595,097 Housing Successor Agency 5,262 - - - - - - - 5,262 Development Impact Funds 25,797 4,994,848 - 255,647 - - - 5,276,292 Other G overnmental Funds 5,206,922 - 723,246 - 73,124 - - - 6,003,292 Sewer Fund 3,549,830 - - - 15,810 - - - 3,565,640 Development Services Fund 2,393,036 - - - - - - - 2,393,036 CV Elite Athlete Training Ctr - - 31,280 - - - - - 31,280 Other Enterprise Funds 3,259,685 - - - - - - - 3,259,685 Internal Service Funds 82,673 - - - - - - - 82,673 Total 16,144,177$ 491,287$ 42,230,391$ 53,806$ 871,730$ 126,526$ 231,762$ 321,760$ 60,471,439$ Transfers In
General Fund Operating support to the General Fund for City staff services and equipment. Total amount of support was $16,144,177.
Federal, State and Local Grants Fund Transferring the matching contribution to the federal grants in the amount of $491,287.
Other Governmental Funds Transfer from General Fund in the amount of $34,705,118, Development Impact Funds in the amount of $4,994,848 and from other governmental funds in the amount of $723,246 for various debt obligations. Transfer from Chula Vista Elite Athlete Training Center to Eastlake Maintenance District in the amount of $31,280 for taxes related to City owned property. Various transfers between Federal, State, and Local Grants Fund in the amount of $1,775,899.
Sewer Fund Transfer from Federal, State, and Local Grants Fund in the amount of $53,806 for operating support.
Development Services Fund Operating support to the Development Services Fund for service; $448,729 support from the General Fund and $255,647, $78,420, $73,124, and $15,810 from Development Impact Funds, Federal, State, and Local Grants Fund, Other Governmental Funds and the Sewer Fund, respectively.
Chula Vista Elite Athlete Training Center Support from General Fund: $126,526 for telecom site license fee.
Other Enterprise Funds Operating support to the Other Enterprise Funds for services provided; $173,762 and $58,000 support from the General Fund and Federal, State, and Local Grants Fund, respectively.
Internal Service Funds Operating support to the internal service funds for services provided; $313,760 and $8,000 support from the General Fund and Other Governmental Funds, respectively. 85 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 7 Capital Assets
A. Government-Wide Financial Statements
A Summary of changes in capital assets for governmental activities for the year ended June 30, 2023, was as follows:
Balance Prior Period CIP Balance
July 1, 2022 Adjustm ents Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:
Land 436,447,308$ -$ -$ (263,784)$ -$ 436,183,524$ Construction in progress 158,259,257 - 55,764,121 - (11,440,162) 202,583,216 Total capital assets, not being depreciated 594,706,565 - 55,764,121 (263,784) (11,440,162) 638,766,740 Capital assets, being depreciated:
Buildings 231,162,805 - - - - 231,162,805 Improvements other than buildings 145,266,072 - 13,237,043 - - 158,503,115 Machinery and equipment 55,568,201 - 5,032,528 (1,082,468) - 59,518,261 Infrastructure 851,596,091 17,321,417 25,762,269 - 11,440,162 906,119,939 Subscription assets - 2,744,945 411,308 - - 3,156,253 Lease assets 972,381 - - (59,449) - 912,932 Subtotal 1,284,565,550 20,066,362 44,443,148 (1,141,917) 11,440,162 1,359,373,305 Less accum ulated depreciation
Buildings (77,435,191) - (4,540,589) - - (81,975,780) Improvem ents other than buildings (65,168,810) - (2,976,581) - - (68,145,391) Subscription assets - - (600,595) - - (600,595) Lease assets (237,898) - (202,949) 32,667 - (408,180) Machinery and equipment (36,343,542) - (5,528,790) 1,076,623 - (40,795,709) Infrastructure (418,539,945) (1,733,015) (23,172,047) - - (443,445,007) Subtotal (597,725,386) (1,733,015) (37,021,551) 1,109,290 - (635,370,662) Total capital assets, being depreciated 686,840,164 18,333,347 7,421,597 (32,627) 11,440,162 724,002,643 Total governmental activities 1,281,546,729$ 18,333,347$ 63,185,718$ (296,411)$ -$ 1,362,769,383$
Depreciation expense was charged to functions/programs as follows:
G eneral government 313,604$
Public safety 4,302,176
Public works 31,094,486
Community development 166,886
Parks and recreation 958,439
Library 1,060
Internal service 184,900
37,021,551$
86 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 7 Capital Assets (Continued)
B. Government-Wide Financial Statements (Continued)
A Summary of changes in capital assets for business-type activities for the year ended June 30, 2023, was as follows:
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:
Land 181,275,803$ -$ -$ -$ 181,275,803$ Construction in progress 10,030,004 4,883,712 - (4,610,816) 10,302,900 Total capital assets, not being depreciated 191,305,807 4,883,712 - (4,610,816) 191,578,703 Capital assets, being depreciated:
Buildings and Structures 17,159,874 - - - 17,159,874 Improvments other than buildings 595,267 - - - 595,267 Subscription assets - 872,626 - - 872,626 Lease assets 229,576 - (224,226) - 5,350 Machinery and equipment 13,700,082 633,756 (378,793) - 13,955,045 Infrastructure 257,945,948 5,984,987 - 4,610,816 268,541,751 Subtotal 289,630,747 7,491,369 (603,019) 4,610,816 301,129,913 Less accumulated depreciation
Buildings and Structures (2,146,407) (339,817) - - (2,486,224) Improvments other than buildings (434,583) (30,156) - - (464,739) Subscription assets - (174,525) - - (174,525) Lease assets (58,731) (7,346) 60,727 - (5,350) Machinery and equipment (7,900,465) (1,744,886) 378,793 - (9,266,558) Infrastructure (146,032,715) (5,487,291) - (151,520,006) Subtotal (156,572,901) (7,784,021) 439,520 - (163,917,402) Total capital assets, being depreciated 133,057,846 (292,652) (163,499) 4,610,816 137,212,511 Total governmental activities 324,363,653$ 4,591,060$ (163,499)$ -$ 328,791,214$
Depreciation/amortization expense for business-type activities for the year ended June 30, 2023, was as follows:
CV Elite Training Center 337,146$
Sewer 6,289,202
Sewer Development Impact Fees 3,041
Development Services 209,453
Transport Enterprise 884,806
Golf course 51,912
Transit 8,461
7,784,021$
87 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 7 Capital Assets (Continued)
A. Fiduciary Funds Financial Statements
A Summary of changes in capital assets for fiduciary funds for the year ended June 30, 2023, were as follows:
Balance CIP Balance
July 1, 2022 Additions Deletions Transfers June 30, 2023 Capital assets, not being depreciated:
Land 5,600,080$ -$ -$ -$ 5,600,080$ Construction in progress 27,796,396 108,026,036 - - 135,822,432 Total capital assets, not being depreciated 33,396,476 108,026,036 - - 141,422,512 Capital assets, being depreciated:
Buildings and Structures 2,386,218 - - - 2,386,218 Subtotal 2,386,218 - - - 2,386,218 Less accumulated depreciation
Buildings and Structures (1,588,087) (47,724) - - (1,635,811) Subtotal (1,588,087) (47,724) - - (1,635,811) Total capital assets, being depreciated 798,131 (47,724) - - 750,407 Total governmental activities 34,194,607$ 107,978,312$ -$ -$ 142,172,919$
Depreciation expense for fiduciary funds for the year ended June 30, 2023, was $47,724 being reported in private-purpose trust funds.
Note 8 Long-Term Liabilities
A summary of changes in long-term debt for the year ended June 30, 2023, was as follows:
Balance Balance Amount
Beginning of End Due Within
Year Additions Deletions of Year One Year
Governmental Activities:
Bonds payable
Certificates of participation 63,205,000$ -$ 4,250,000$ 58,955,000$ 4,475,000$ Lease revenue bonds 63,135,000 - 7,860,000 55,275,000 7,935,000 Premium 10,314,453 - 1,486,612 8,827,841 - Total bonds payable 136,654,453 - 13,596,612 123,057,841 12,410,000 Private placement notes 8,995,027 - 2,769,433 6,225,594 930,385 Pension-related debt 316,587,171 - 8,105,450 308,481,721 8,298,985 Financed purchases 4,800,982 3,986,966 876,134 7,911,814 952,031 Total Governmental Activities 467,037,633$ 3,986,966$ 25,347,629$ 445,676,970$ 22,591,401$ Business-Type Activities:
Pension-related debt 26,932,829$ -$ 689,550$ 26,243,279$ 706,015$ Financed purchases 3,630,290 - 894,038 2,736,252 903,000 Total Business-Type Activities 30,563,119$ -$ 1,583,588$ 28,979,531$ 1,609,015$
Governmental Activities
A. Certificates of Participation
2014 Refunding COP
In February 2014, the Chula Vista Public Financing Authority (Authority) issued $45,920,000 in 2014 Certificates of Participation to refinance the Citys outstanding 2002 Certificates of Participation (Police 88 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Facility Project), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The
Note 8 Long-Term Liabilities (Continued)
Governmental Activities (Continued)
A. Certificates of Participation (Continued)
2014 Refunding COP (Continued)
source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the lease, the Trustee, as assignee of the Authority, may terminate the lease and re-lease the leased premises or may retain the lease and hold the City liable for all lease payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate lease payments. Interest is payable semiannually on April 1 and October 1 of each year, commencing October 1, 2014. The certificates mature in 2032 and principal is payable on October 1 each year, commencing October 1, 2014. As of June 30, 2023, the outstanding balance was $29,425,000.
2015 Refunding COP
In August 2015, the Chula Vista Public Financing Authority (Authority) issued $34,330,000 in 2015 Certificates of Participation to refinance the Citys outstanding 2004 Certificates of Participation (Civic Center Project Phase) and a portion of the 2006 Certificates of Participation (Civic Center Project Phase II), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $445,970, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $4,384,723 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $3,073,833. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the lease, the Trustee, as assignee of the Authority, may terminate the lease and re-lease the leased premises or may retain the lease and hold the City liable for all lease payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate lease payments. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2016. The certificates mature in 2034 and principal is payable on March 1 each year, commencing October 1, 2015. As of June 30, 2023, the outstanding balance was $20,930,000.
2016 Refunding COP
In July 2016, the Chula Vista Public Financing Authority (Authority) issued $8,600,000 in 2016 Certificates of Participation (Certificates) to current refund all of the Citys outstanding 2006 Certificates of Participation (Civic Center Project Phase 2), to satisfy the reserve requirement with respect to the Certificates and to pay the costs of issuance of the Certificates. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $221,204, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $1,144,525 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $973,849. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the lease, the Trustee, as assignee of the Authority, may terminate the lease and re-lease the leased premises or may retain the lease and hold the City liable for all lease payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate lease payments. Interest is payable semi-annually on March 1 and September 1 of each year, commencing March 1, 2017. The certificates mature in 2036 and principal is payable on March 1 each year, commencing March 1, 2027. As of June 30, 2023, the outstanding balance was $8,600,000.
89 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Governmental Activities (Continued)
B. Lease Revenue Bonds
2016 Lease Revenue Refunding Bonds
In July 2016, the Chula Vista Municipal Financing Authority (Authority) issued $25,885,000 in 2016 Lease Revenue Refunding Bonds to refinance an existing lease by advance refunding the Citys outstanding 2010 Certificates of Participation (Capital Facilities Refunding Projects) and to pay the costs of issuance of the Bonds. The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $4,898,948, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $2,167,047 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $2,293,798. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the lease agreement, the Trustee, as assignee of the Authority, may terminate the lease agreement and re-lease the leased property or may retain the lease agreement and hold the City liable for all base rental payments thereunder on an annual basis.
Under no circumstances will the Trustee have the right to accelerate base rental payments. Interest is payable semi-annually on November 1 and May 1 of each year, commencing November 1, 2016. The certificates mature in 2033 and principal is payable on May 1 each year, commencing May 1, 2017. As of June 30, 2023, the outstanding balance was $16,040,000.
2017 Lease Revenue Bonds
In June 2017, the Chula Vista Municipal Financing Authority (Authority) issued $61,355,000 in 2017 Lease Revenue Bonds to finance infrastructure, facilities, and equipment and to pay the costs of the issuance of the bonds. Should the City default under the lease agreement, the Trustee, as assignee of the Authority, may terminate the lease agreement and re-lease the leased property or may retain the lease agreement and hold the City liable for all base rental payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate base rental payments. Interest is payable semi-annually on November 1 and May 1 of each year, commencing November 1, 2017. The bonds mature in 2027 and principal is payable on May 1 each year, commencing May 1, 2019. As of June 30, 2023, the outstanding balance was $26,620,000.
2017 Lease Revenue Bonds, Series A (New Clean Renewable Energy Bonds Federally Taxable)
In December 2017, the Chula Vista Municipal Financing Authority (Authority) issued $12,045,000 in 2017 Lease Revenue Bonds, Series A (New Clean Renewable Energy Bonds Federally Taxable), to finance photovoltaic energy systems at various City facilities, to capitalize interest on the bonds and to pay the costs of issuance of the bonds. Should the City default under the lease agreement, the Trustee, as assignee of the Authority, either may terminate the lease agreement and re-lease the leased property or may retain the lease agreement and hold the City liable for all base rental payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate base rental payments. Interest is payable semi-annually on December 1 and June 1 of each year, commencing June 1, 2018. The bonds mature in 2049 and principal is payable on December 1 each year, commencing December 1, 2021. As of June 30, 2023, the outstanding balance was $11,955,000.
2017 Lease Revenue Bonds, Series B (Tax-Exempt)
In December 2017, the Chula Vista Municipal Financing Authority (Authority) issued $1,085,000 in 2017 Lease Revenue Bonds, Series B (Tax-Exempt), to finance photovoltaic energy systems at various City facilities, to capitalize interest on the bonds and to pay the costs of issuance of the bonds. Should the City default under the lease agreement, the Trustee, as assignee of the Authority, either may terminate the lease agreement and re-lease the leased property or may retain the lease agreement and hold the City liable for all base rental payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate base rental payments. Interest is payable semi-annually on December 1 and June 1 of each year, commencing June 1, 2018. 90 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Governmental Activities (Continued)
B. Lease Revenue Bonds (Continued)
2017 Lease Revenue Bonds, Series B (Tax-Exempt) (Continued)
The bonds mature in 2029 and principal is payable on December 1 each year, commencing December 1, 2019. As of June 30, 2023, the outstanding balance was $660,000.
C. Private Placement Notes
Section 108 Loan
In June 2008, the City entered into a contract for loan guarantee assistance with the U.S. Department of Housing and Urban Development (HUD) as part of the Section 108 Loan Program in the amount of $9,500,000. The Section 108 Loan is an advance of future CDBG entitlement funds and, as such, is repaid with a portion of the Citys annual entitlement. Procee ds of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future CDBG entitlements for 20 years, with interest payments beginning with fiscal year 2009. On November 27, 2018, the City received notice from HUD regarding the opportunity to refinance the existing Section 108 Loan from an average of 5.19% interest rate (2019 through 2028) to an estimated average of 3.23% interest rate (2019 through 2028). On December 6, 2018, the City notified HUD of its election to redeem the current note. The City signed the agreement for the refinancing on January 23, 2019. No changes were made to the term of the loan. As of June 30, 2023, the outstanding balance was $3,868,000.
Taxable QECB Lease/Purchase Agreement
On December 31, 2012, the City entered into a lease purchase agreement with a private party to purchase certain energy conservation equipment. The lease/purchase agreement would bridge the financial gap between the Municipal Street Listing Retrofit Project capital costs and the available rebates for energy conservation equipment. As of June 30, 2023, the outstanding balance was $297,942.
California Energy Commission Loans/SDG&E On-Bill Financing
On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the Citys participation in the California Energy Commission (CEC) and the SDG&E On-Bill Financing program. The loans would bridge the financial gap between energy conservation project capital costs and the available rebates for energy conservation equipment. As of June 30, 2023, the outstanding balance was $505,403.
Department of Housing and Community Development Emergency Rental Assistance Program (ERAP) Loan
On May 24, 2022, the City entered into a 0% interest cashflow loan/note agreement with the Department of Housing and Community Development for an ERAP loan in the amount of $8,567,338 for eligible rent and utilities assistance payments for rent arrears, utility arrears, and local administrative expenses, as defined in the U.S Treasurys guidance. The loan was to be administered in three tranches, of which the City received tranche one in the amount of $3,426,934. In 2023, after only receiving one tranche, it was determined that only $1,554,249 would be utilized and $1,872,685 was returned to the lender. As of June 30, 2023, the outstanding balance was $1,554,249.
91 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Governmental Activities (Continued)
D. Pension-Related Debt
2021 Taxable Pension Obligation Bonds
In February 2021, the City issued $350,025,000 in 2021 Taxable Pension Obligation Bonds to finance the rolled forward Pension Liability as of June 30, 2019, as projected by CalPERS. Interest is payable semi- annually on December 1 and June 1 of each year, commencing December 1, 2021. The bonds mature in 2045 and principal is payable on December 1 each year, commencing June 1, 2022. As of June 30, 2023, the outstanding balance is $334,725,000. The bonds are allocated among the various funds on the same basis as the Citys net pension liability. The portion of the bond s attributable to governmental activities, after the allocation attributable to business-type activities of $26,243,279, on June 30, 2023, was $308,481,721.
E. Financed Purchases
Solar Energy Financing
On July 23, 2013, the City Council approved Resolution 2013-149 authorizing the City to utilize a $2,121,500 Tax-Exempt Facility Lease Purchase Agreement with Banc of America, which would be repaid through the annual energy cost savings. As of June 30, 2023, the outstanding balance was $924,108.
JP Morgan Equipment Financed Purchase Agreement
In August 2016, the City entered into a financed purchase agreement with JP Morgan Chase Bank, N.A. for the acquisition of one Pierce Fire Engine. The agreement term is ten years and the agreement amount of $1,229,470 is to be paid in annual installments beginning in August 2017. As of June 30, 2023, the outstanding balance was $523,366.
Motorola Solutions CAD Equipment Financed Purchase Agreement In July 2017, the City entered into a financed purchase agreement with Motorola Solutions, Inc. for the acquisition of a PSA System. The agreement term is ten years and the agreement amount of $1,351,409 is to be paid in annual installments beginning in July 2018. As of June 30, 2023, the outstanding balance was $629,328.
JP Morgan Equipment Financed Purchase Agreement
In October 2019, the City entered into a financed purchase agreement with JP Morgan Chase Bank, N.A. for the acquisition of one Pierce Fire Engine. The agreement term is ten years and the agreement amount of $720,786 is to be paid in annual installments beginning in October 2019. As of June 30, 2023, the outstanding balance was $463,322.
Banc of America Equipment Financed Purchase Agreement
In July 2020, the City entered into a financed purchase agreement with Banc of America Public Capital Corp. for the acquisition of two Pierce Arrow Pumpers. The agreement term is 5 years and the agreement amount of $2,273,805 is to be paid in annual installments beginning on July 30, 2021. As of June 30, 2023, the outstanding balance was $1,384,723.
JP Morgan Equipment Financed Purchase Agreement
In November 2022, the City entered into a financed purchase agreement with JP Morgan Chase Bank, N.A. for the acquisition of two Pierce Fire Engine and one Pierce Tractor Drawn Aerial Engine. The agreement term is ten years and the agreement amount of $3,986,967 is to be paid in annual installments beginning in May 2024. As of June 30, 2023, the outstanding balance was $3,986,967.
92 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Governmental Activities (Continued)
F. Debt Service to Maturity
The debt service requirements to maturity for the long-term debts previously described are as follows:
Year Ending
June 30, Principal Interest Total Principal Interest Total 2024 4,475,000 2,341,894 6,816,894 7,935,000 2,401,049 10,336,049 2025 4,660,000 2,158,319 6,818,319 8,345,000 2,021,878 10,366,878 2026 4,885,000 1,934,444 6,819,444 8,760,000 1,623,764 10,383,764 2027 5,025,000 1,716,794 6,741,794 9,185,000 1,205,839 10,390,839 2028 5,245,000 1,504,469 6,749,469 2,090,000 803,104 2,893,104 2029-2033 29,745,000 4,093,384 33,838,384 9,175,000 2,945,017 12,120,017 2034-2038 4,920,000 248,788 5,168,788 2,225,000 1,821,402 4,046,402 2039-2043 - - - 2,905,000 1,309,131 4,214,131 2044-2048 - - - 3,780,000 607,691 4,387,691 2049-2053 - - - 875,000 18,703 893,703 Total 58,955,000$ 13,998,092$ 72,953,092$ 55,275,000$ 14,757,578$ 70,032,578$ Year Ending
June 30, Principal Interest Total Principal Interest Total 2024 930,385 124,666 1,055,051 9,005,000 7,658,019 16,663,019 2025 864,939 96,420 961,359 9,215,000 7,620,288 16,835,288 2026 801,021 72,814 873,835 9,475,000 7,559,469 17,034,469 2027 2,213,250 50,896 2,264,146 9,715,000 7,479,879 17,194,879 2028 692,000 31,542 723,542 10,030,000 7,366,796 17,396,796 2029-2033 723,999 10,806 734,805 56,455,000 34,255,580 90,710,580 2034-2038 - - - 82,960,000 27,305,633 110,265,633 2039-2043 - - - 101,455,000 15,453,325 116,908,325 2044-2048 - - - 46,415,000 2,005,729 48,420,729 Total 6,225,594$ 387,144$ 6,612,738$ 334,725,000$ 116,704,718$ 451,429,718$ Year Ending
June 30, Principal Interest Total Principal Interest Total 2024 952,031 314,838 1,266,869 23,297,416 12,840,466 36,137,882 2025 1,319,037 223,772 1,542,808 24,403,976 12,120,677 36,524,652 2026 1,356,775 189,334 1,546,109 25,277,796 11,379,825 36,657,621 2027 924,982 154,824 1,079,806 27,063,232 10,608,232 37,671,464 2028 652,520 122,566 775,086 18,709,520 9,828,477 28,537,997 2029-2033 2,706,470 245,967 2,952,436 98,805,469 41,550,754 140,356,222 2034-2038 - - - 90,105,000 29,375,823 119,480,823 2039-2043 - - - 104,360,000 16,762,456 121,122,456 2044-2048 - - - 50,195,000 2,613,420 52,808,420 2049-2053 - - - 875,000 18,703 893,703 Total 7,911,814$ 1,251,300$ 9,163,114$ 463,092,408$ 147,098,832$ 610,191,240$ Certificates of Participation Lease Revenue Bonds
Private Placement Notes Pension-Related Debt*
Financed Purchase Agreements Total Future Debt Service
*Pension-Related Debt amounts contain both governmental activities and business-type activities totals.
93 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Business-Type Activities
A. Pension-Related Debt
2021 Taxable Pension Obligation Bonds
In February 2021, the City issued $350,025,000 in 2021 Taxable Pension Obligation Bonds to finance the rolled forward pension liability as of June 30, 2019, as projected by CalPERS. Interest is payable semi-annually on December 1 and June 1 of each year, commencing December 1, 2021. The bonds mature in 2045 and principal is payable on December 1 each year, commencing June 1, 2022. As of June 30, 2023, the outstanding balance is $334,725,000. The bonds are allocated among the various funds on the same basis as the Citys net pension liability. The portion of the bonds attributable to business-type activities, after the allocation attributable to governmental activities at June 30, 2023, was $26,243,279. Refer to the debt service requirements to maturity for this bond on the previous page.
B. Financed Purchase Agreements
Banc of America Equipment Financed Purchase Agreement
In July 2020, the City entered into a financed purchase agreement with Banc of America Public Capital Corp. for the acquisition of a Medix Ambulance, and various equipment associated with the ambulance. The financing term is 5 years and the payment amount of $4,493,100 is to be paid in annual installments beginning on July 30, 2021.
As of June 30, 2023, the outstanding balance was $2,736,252.
C. Debt Service to Maturity
Year Ending June
30, Principal Interest Total
2024 903,000$ 25,112$ 928,112$
2025 912,053 16,058 928,112 2026 921,199 6,913 928,112 Total 2,736,252$ 48,083$ 2,784,336$ Financed Purchase Agreements
Fiduciary Funds Long-Term Debt
A. Tax Allocation Bonds
Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Private Purpose Trust Funds
Bonds payable
Tax Allocation Refunding Bonds 20,930,000$ -$ 1,920,000$ 19,010,000$ 1,995,000$ Premium 3,281,459 - 234,390 3,047,069 - Total Private Purpose Trust Funds 24,211,459$ -$ 2,154,390$ 22,057,069$ 1,995,000$
94 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Fiduciary Funds Long-Term Debt (Continued)
A. Tax Allocation Bonds (Continued)
2016 Tax Allocation Refunding Bonds
In July 2016, the Successor Agency to the Redevelopment Agency of the City of Chula Vista (the Successor Agency) issued $29,315,000 in 2016 Tax Allocation Refunding Bonds to refinance the following obligations of the Former Agency:
Bayfront/Town Centre Redevelopment Project 2006 Senior Tax Allocation Refunding Bonds, Series A, currently outstanding in the principal amount of $8,770,000.
Bayfront/Town Centre Redevelopment Project 2006 Subordinate Tax Allocation Refunding Bonds, Series B, currently outstanding in the principal amount of $8,245,000; and 2008 Tax Allocation Refunding Bonds (Merged Redevelopment Project), currently outstanding in the principal amount of $20,450,000.
The refunding resulted in a difference between the reacquisition price and the net carrying amount of the old debt of $1,669,678, which is reported as a deferred outflow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $9,561,410 and to obtain an economic gain (difference between the present values of the old and new debt services payments) of $4,617,835. In the event of default of the payment of the scheduled principal of or interest on the 2016 Insured Bonds when all or some becomes due, the Trustee on behalf of any owner of the 2016 Insured Bonds shall have a claim under the 2016 Insurance Policy for such payments. The maturity of Insured bonds shall not be accelerated without the consent of the 2016 Insurer. Interest is payable semi-annually on April 1 and October 1 of each year, commencing April 1, 2017. The certificates mature in 2037 and principal is payable on October 1 each year, commencing October 1, 2017. As of June 30, 2023, the outstanding balance was $19,010,000.
The annual debt service requirements for the 2016 Tax Allocation Refunding Bonds outstanding at June 30, 2023, are as follows:
Year Ending
June 30, Principal Interest Total
2024 1,995,000 795,100 2,790,100 2025 2,075,000 713,700 2,788,700 2026 2,155,000 629,100 2,784,100 2027 1,520,000 555,600 2,075,600 2028 1,585,000 485,575 2,070,575 2029-2033 4,855,000 1,646,625 6,501,625 2034-2038 4,825,000 375,050 5,200,050 Total 19,010,000$ 5,200,750$ 24,210,750$ 95 •
•
•
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Fiduciary Funds Long-Term Debt (Continued)
A. Tax Allocation Bonds (Continued)
Pledged Revenues
The Successor Agency has pledged tax revenues to the repayment of the RDAs debts transferred to it on February 1, 2012, through the final maturity of the bonds, or early retirement of the bonds, whichever comes first.
Tax revenues consist of Redevelopment Property Tax Trust Fund distributions allocated to the RDAs project areas pursuant to Section 33670 of the Redevelopment Law excluding that portion of such tax increment revenues required to be paid under tax-sharing agreements unless the payment of such amounts has been subordinated to payment of debt services on the bonds. Redevelopment Property Tax Trust Fund distributions earned in fiscal year 2023 was $3,051,551 and total debt service of all Tax Allocation Bonds paid was $2,793,400. The bonds required 92% of net distributions. In future years, annual principal and interest payments on the Tax Allocation Bonds are expected to require 84% of Redevelopment Property Tax Trust Fund distributions.
B. Special Assessment Debt Non-City Obligations
Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured by liens against the assessed properties. The City acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds. At June 30, 2023, the special assessment debts recorded in custodial funds outstanding were as follows:
Original Outstanding
Amount June 30, 2023
Special Tax Revenue Refunding Bonds, Series 2013 72,100,000$ 47,590,000$ Special Tax Revenue Refunding Bonds, Series 2015A 30,460,000 24,270,000 Revenue Refunding Bonds, Series 2015B 43,695,000 27,835,000 CVBFFA Revenue Bonds Series 2022A 37,202,668 * 192,789,453 CVBFFA Revenue Bonds Series 2022B 10,000,000 10,000,000 CFD 16-1 1A1 12,280,000 10,830,000
CFD 16-1 1A2 11,255,000 11,195,000
Bond Premium 10,389,831 7,829,097
Total 227,382,499$ 332,338,550$
*An additional $155,586,785 was issued in Fiscal Year 2022-2023. 96 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 8 Long-Term Liabilities (Continued)
Fiduciary Funds Long-Term Debt (Continued)
C. Multi-Family Housing Bonds Non-City Obligations
Bonds issued to finance public improvement and/or affordable multifamily housing projects are liabilities of the developers and are secured by liens against the assessed property. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore, none of the following obligations are included in the accompanying basic financial statements. At June 30, 2023, the multi-family housing bonds outstanding were as follows:
Original Outstanding
Amount June 30, 2023
2007 A Ox ford Terrace Apartments 2,276,000$ 1,515,000$ 2007 B Ox ford Terrace Apartments 2,363,000 2,363,000 2006 A Teresina Apartment Projects 37,940,000 37,940,000 2007 C The Landing Apartment 16,670,000 5,401,854 2013 A Congregational Tower 20,540,000 18,490,207 2016 A-1 Duetta Apts Homes 18,675,000 7,484,432 2016 A-3 Duetta Apts Homes junior 725,000 719,000 2016 B-1 V olta Apts Homes 20,925,000 9,517,240 2016 B-3 V olga Apts Homes Junior 775,000 36,000 2010 A-1 Landings II Senior 11,786,233 9,679,906 2019 A Cordova and Trolley Apartments 6,450,000 3,830,396 2019 Series B-1 St. Regis Park Apartmenrs 13,300,000 12,867,606 2019 Series B-4 Sub St. Regis Park Apartmenrs 6,800,000 7,339,623 2020 Series A Otay Ranch Apartments 5,354,124 35,000,000 2021 Series A-3 Columbia Apartments 2,600,000 2,600,000 2021 Series A-1 Columbia Apartments 13,316,443 49,500,000 2021 Series A-2 Columbia Apartments 1,434,112 1,434,112 2023 Series A-1 Otay Ranch Apartments 4,000,000 4,000,000 2023 Series A-2 Otay Ranch Apartments 890,829 890,829 Total 186,820,741$ 210,609,205$
Note 9 Unearned Revenue
At June 30, 2023, unearned revenue was reported in the amount of $48,025,429 in governmental activities and related to grant program funding, National Opioid Settlements, and Mobile Park Fees received but not expended for allowable costs as of June 30, 2023.
Note 10 Compensated Absences
The Citys liability for vested and unpaid compensated absences (accrued vacation) has been accrued and amounts to $10,880,804 at June 30, 2023. For the governmental activities claims and judgments and compensated absences are generally liquidated by the general fund and the fleet management internal service fund. In business-type funds, the liabilities are typically liquidated by the Sewer Fund, Development Services Fund, and Other Enterprise Funds. The table and schedule below describe the dollar amount of compensated absences allocated to the different activities and funds, the percentage of liquidation applicable to those funds or activities, and the changes in compensated absences for the year.
97 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 10 Compensated Absences (Continued)
Percentage of
Balance Liquidation
Governmental Activities
General Fund 9,817,024$ 90.2%
Fleet Management internal service fund 77,538 0.7% Subtotal - Governmental Activities 9,894,562
Business-Type Activities
Sewer Fund 270,991 2.5%
Development Services Fund 491,073 4.5%
Other Enterprise Funds 224,178 2.1%
Subtotal - Business-Type Activities 986,242
Total Compensated Absences 10,880,804$ 100.0%
Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Governmental Activites
Compensated Absences 9,399,894$ 6,927,158$ 6,432,490$ 9,894,562$ 7,064,514$ Business-Type Activities
Compensated Absences 844,715 804,418 662,891 986,242 665,155 Grand Total 10,244,609$ 7,731,576$ 7,095,381$ 10,880,804$ 7,729,669$
Note 11 Self-Insurance Accrued Liabilities
California employers, including the cities, are required to provide for workers compensation when the employees are injured on the job and the City, in compliance with its workers compensation obligations, has a self-insurance workers compensation program. To administer Citys workers compensation program, the City requires a qualified workers compensation claims management service company (commonly called "Third Party Administrators" or "TPA") to supervise and administer the workers compensation claims made upon the City's self-insurance program.
City Council of the City of Chula Vista authorized the City Manager to execute an Agreement with Intercare Holdings Insurance Services, Inc., to act as the Third-Party Admi nistrator for the Citys Workers Compensation Program, effective July 1, 2023. The term of this agreement began July 1, 2023, and ended on June 30, 2026, for completion of all Required Services. The Agreement may be extended for up to three (3) additional terms.
The City is self-insured for the first $1,000,000 per occurrence for workers compensation liabilities. Excess workers compensation coverage is obtained through participation in the Public Risk Innovation, Solutions, and Management (PRISM), formerly known as CSAC - Excess Insurance Authority. As of June 30, 2023, the program that offers per occurrence coverage up to $5,000,000 through pooled resources and from $5,000,000 to statutory limits via group purchased excess insurance policies.
98 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 11 Self-Insurance Accrued Liabilities (Continued)
Only the probable amounts of loss as estimated by the Citys Risk Manager and Attorney, including an estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic financial statements.
There were no reductions in insurance from the prior year and there were no insurance settlements that exceeded coverage in each of the past three years.
The aggregate change in the balance of claims payable as recorded in the Governmental Activities was as follows:
Year Ended
June 30,
Beginning
Balance
Claims and
Changes in
Estimates Claims Payments Ending Balance
2021 24,685,336 11,304,276 (4,981,945) 31,007,667 2022 31,007,667 4,790,376 (4,565,636) 31,232,407 2023 31,232,407 15,508,678 (8,663,212) 38,077,873
The City determines that $4,000,000 of the $38,077,873 to be short term. The liabilities for claims and judgments are typically liquidated from the General Fund.
Note 12 Leases
A. Lease Receivable and Deferred Inflows of Resources
430 F Street Property License Agreement (Previously known as 430 F Street Lease) On July 1, 2021, the City entered into a 24-month lease as Lessor for the use of office space on 430 F Street. On March 28, 2023, the City replaced the 24-month lease with a 39-month property license agreement. An initial lease receivable for the property lease was recorded in the amount of $116,640. An initial lease receivable for the property license agreement was recorded in the amount of $199,542. As of June 30, 2023, the value of the lease receivable is $184,542. The lessee is required to make monthly fixed payments of $5,000.
The license agreement has an interest rate of 0%. The office space estimated useful life was 39 months as of the contract commencement. The value of the deferred inflow of resources as of June 30, 2023 was $184,542, and the City recognized lease revenue of $58,740 during the fiscal year. The term may be extended by mutual agreement of the parties.
B. Lease Payable
Dell MDC Lease
On July 1, 2021, the City entered into a 27-month lease as Lessee for the use of Dell Latitude 5420 computers.
An initial lease liability was recorded in the amount of $163,936. As of June 30, 2023, the value of the lease liability was $0. The computers estimated useful life was 0 months as of the contract commencement. The value of the lease asset as of June 30, 2023 of $163,936 with accumulated amortization of $163,936 is included with leased assets in Note 7A table for the governmental activities. The City has the option to purchase the computers for $1 (one dollar).
Key Government Finance Inc. NIC Lease
On July 1, 2021, the City entered into a 29-month lease as Lessee for the use of NIC networking equipment, software and licensing package. An initial lease liability was recorded in the amount of $47,442. On July 1, 2022, the implementation of GASB 96 Subscription Based Information Technology Arrangements went into effect and a total of $10,449 under this lease was reclassified to GASB 96 (Please re fer to Note 13 Subscription Based Information Technology Arrangements for additional information). A total of $14,808 remained under this lease.
As of June 30, 2023 the value of the lease liability is $0. The leased NIC equipment estimated useful life was 0 months as of the contract commencement. The value of the lease asset as of June 30, 2023 was $36,993 with an accumulated amortization of $36,993 is included with leased assets in Note 7A table for the governmental activities. The City has the option to purchase the equipment for $1 (one dollar). 99 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 12 Leases (Continued)
B. Lease Payable (Continued)
Mail Folding Machine Lease
On July 1, 2021, the City entered into an 18-month lease as Lessee for the use of a Mail Folding Machine. An initial lease liability was recorded in the amount of $10,700. As of June 30, 2023, the value of the lease liability is $0. The machine estimated useful life was 0 months as of the contract commencement. The value of the lease asset as of June 30, 2023 was $10,700 and the accumulated amortization of $10,700 is included with leased assets in Note 7A table for the governmental activities and Note 7A table for the business-type activities. The City has the option to purchase the machine for $1 (one dollar).
PNC Equipment Lease
On July 1, 2021, the City entered into a 53-month lease as Lessee for the use of two 2016 Pierce Arrow XT Triple Combination Pumper apparatuses. An initial lease liability was recorded in the amount of $706,653. As of June 30, 2023, the value of the lease liability is $442,467. The City is required to make annual fixed payments of $152,189. The lease has an interest rate of 3.2000%. The apparatuses estimated useful life was 0 months as of the contract commencement. The value of the lease asset as of June 30, 2023 of $706,653 with accumulated amortization of $201,901 is included with leased assets in Note 7A table for the governmental activities. The City has the option to purchase the equipment for $441,699.
Velosimo Inc. Software Integration Platform Lease
On July 1, 2021, the City entered into a 52-month lease as Lessee for the use of Velosimo Software Integration Platform. An initial lease liability was recorded in the amount of $224,226. As of June 30, 2022, the value of the lease liability was $182,726. On July 1, 2022, the implementation of GASB 96 Subscription Based Information Technology Arrangements went into effect and the full balance at July 1, 2022 was removed from Leases Payable (Please refer to Note 13 Subscription Based Information Technology Arrangements for additional information).
The following is a summary of changes in leases of the City for the year ended June 30, 2023:
Additions Deletions
694,262$ (10,449)$ -$ 241,346$ 442,467$ 138,466$ Additions Deletions
184,617$ (182,726)$ -$ 1,891$ -$ -$ Governmental Activities
Adjustments
AdjustmentsBeginning Balance Ending Balance
Due in
One Year
Business-Type Activities
Beginning Balance Ending Balance
Due in
One Year
100
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 12 Leases (Continued)
B. Lease Payable (Continued)
Future principal and interest requirements to maturity for the combined lease liability as of June 30, 2023 were as follows:
Year ending
June 30, Principal Interest Total Payments
2024 138,466$ 13,723$ 152,189$ 2025 142,897 9,292 152,189 2026 161,103 4,719 165,822 Total 442,467$ 27,733$ 470,200$ Future Principal and Interest Requirements
Governmental Activities
Note 13 Subscription Based Information Technology Arrangements
A. Subscriptions Payable
Accela Software
On July 1, 2022, the City entered into a 36-month subscription for the use of Accela Software. An initial subscription liability was recorded in the amount of $802,042. As of June 30, 2023, the value of the subscription liability is $543,913. The City is required to make annual fixed payments of $258,129. The subscription has an interest rate of 2.184%. The value of the right to use asset as of June 30, 2023, of $802,042 with accumulated amortization of $160,408 is included with Software on the Subscription Class activities table found below.
Axon Evidence.com Lic. Q-213173-43599.826MH
On July 1, 2022, the City entered into a 13-month subscription for the use of Axon evidence.com Lic. Q-213173- 43599.826MH. An initial subscription liability was recorded in the amount of $19,588. As of June 30, 2023, the value of the subscription liability is $0. The City is required to make annual fixed payments of $21,337. The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $19,588 with accumulated amortization of $3,918 is included with Software on the Subscription Class activities table found below.
Axon Evidence.com Lic. Q-244889-43872.782CM
On July 1, 2022, the City entered into a 21-month subscription for the use of Axon evidence.com Lic Q-244889- 43872.782CM. An initial subscription liability was recorded in the amount of $19,327. As of June 30, 2023, the value of the subscription liability is $0. The City is required to make annual fixed payments of $21,337. The subscription has an interest rate of 2.0240%. The value of the right to use asset as of June 30, 2023 of $19,327 with accumulated amortization of $3,865 is included with Software on the Subscription Class activities table found below.
101
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 13 Subscription Based Information Technology Arrangements (Continued) A. Subscriptions Payable (Continued)
Compliance Focus License Software HA
On July 1, 2022, the City entered into a 24-month subscription for the use of Compliance Focus License Software HA. An initial subscription liability was recorded in the amount of $34,970. As of June 30, 2023, the value of the subscription liability is $17,310. The City is required to make annual fixed payments of $17,660. The subscription has an interest rate of 2.0240%. The value of the right to use asset as of June 30, 2023 of $34,970 with accumulated amortization of $6,994 is included with Software on the Subscription Class activities table found below. The City has 3 extension option(s), each for 12 months.
CXM CMS Software
On July 1, 2022, the City entered into a 14-month subscription for the use of CXM CMS Software. An initial subscription liability was recorded in the amount of $16,166. As of June 30, 2023, the value of the subscription liability is $0. The City is required to make annual fixed payments of $16,212. The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $16,166 with accumulated amortization of $3,233 is included with Software on the Subscription Class activities table found below.
DebtBook Platform
On July 1, 2022, the City entered into a 42-month subscription for the use of DebtBook Platform. An initial subscription liability was recorded in the amount of $36,260. As of June 30, 2023, the value of the subscription liability is $24,172. The City is required to make annual fixed payments of $12,500. The subscription has an interest rate of 2.2750%. The value of the right to use asset as of June 30, 2023 of $40,010 with accumulated amortization of $8,002 is included with Software on the Subscription Class activities table found below.
e-Plan Electronic Plan Review
On July 1, 2022, the City entered into a 40-month subscription for the use of e-Plan electronic plan review. An initial subscription liability was recorded in the amount of $253,073. As of June 30, 2023, the value of the subscription liability is $172,274. The City is required to make annual fixed payments of $82,688. The subscription has an interest rate of 2.1840%. The value of the right to use asset as of June 30, 2023 of $281,873 with accumulated amortization of $56,375 is included with Software on the Subscription Class activities table found below. The City has 5 extension option(s), each for 12 months.
eSCRIBE Software
On July 1, 2022, the City entered into a 38-month subscription for the use of eSCRIBE Software. An initial subscription liability was recorded in the amount of $167,129. As of June 30, 2023, the value of the subscription liability is $111,810. The City is required to make annual fixed payments of $54,600. Additionally, there are annual other reasonably certain payments of $1,500. The subscription has an interest rate of 2.1840%. The value of the right to use asset as of June 30, 2023 of $185,879. with accumulated amortization of $37,176 is included with Software on the Subscription Class activities table found below. The City has 5 extension option(s), each for 12 months.
Forensic Technology IBIS Subscription Lease PD
On 11/28/2022, the City entered into a 76-month subscription for the use of Forensic Technology IBIS Subscription. An initial subscription liability was recorded in the amount of $307,746. As of June 30, 2023, the value of the subscription liability is $266,561. The City is required to make annual fixed payments of $42,500.
The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $314,246 with accumulated amortization of $41,899 is included with Software on the Subscription Class activities table found below. The City has 5 extension option(s), each for 12 months.
102
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 13 Subscription Based Information Technology Arrangements (Continued) A. Subscriptions Payable (Continued)
IGM Technology Gravity Budget Book Software
On July 1, 2022, the City entered into a 6-month subscription for the use of IGM Technology Gravity Budget Book Software. An initial subscription liability was recorded in the amount of $24,579. As of June 30, 2023, the value of the subscription liability is $0. The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $38,079 with accumulated amortization of $7,616 is included with Software on the Subscription Class activities table found below. The City has 2 extension option(s), each for 12 months.
Key Government Finance Inc NIC Lease
On July 1, 2022, the City entered into a 17-month subscription for the use of Key Government Finance Inc - NIC Lease. An initial subscription liability was recorded in the amount of $10,449. As of June 30, 2023, the value of the subscription liability is $0. The City is required to make annual fixed payments of $23,730. The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $10,449 with accumulated amortization of $2,090 is included with Software on the Subscription Class activities table found below.
LinkedIn Learning Enterprise and License
On January 16, 2023, the City entered into a 36-month subscription for the use of Linkedin Learning Enterprise and License. An initial subscription liability was recorded in the amount of $97,062. As of June 30, 2023, the value of the subscription liability is $65,412. The City is required to make annual fixed payments of $31,650. The subscription has an interest rate of 2.6560%. The value of the right to use asset as of June 30, 2023 of $97,062 with accumulated amortization of $9,706 is included with Software on the Subscription Class activities table found below.
Motorola Solutions CAD Software
On July 1, 2022, the City entered into a 60-month subscription for the use of Motorola Solutions - CAD Software.
An initial subscription liability was recorded in the amount of $288,655. As of June 30, 2023, the value of the subscription liability is $228,193. The City is required to make annual fixed payments of $60,462. The subscription has an interest rate of 2.3660%. The value of the right to use asset as of June 30, 2023 of $971,122 with accumulated amortization of $194,225 is included with Software on the Subscription Class activities table found below.
NIC Partners Platform
On July 1, 2022, the City entered into a 48-month subscription for the use of NIC Partners Platform. An initial subscription liability was recorded in the amount of $222,487. As of June 30, 2023, the value of the subscription liability is $169,572. The City is required to make monthly fixed payments of $4,750. The subscription has an interest rate of 2.2750%. The value of the right to use asset as of June 30, 2023 of $222,487 with accumulated amortization of $44,497 is included with Software on the Subscription Class activities table found below.
Qualtrax Platform
On July 1, 2022, the City entered into a 27-month subscription for the use of Qualtrax Platform. An initial subscription liability was recorded in the amount of $39,500. As of June 30, 2023, the value of the subscription liability is $19,941. The City is required to make annual fixed payments of $9,685. The subscription has an interest rate of 2.0240%. The value of the right to use asset as of June 30, 2023 of $47,163 with accumulated amortization of $9,433 is included with Software on the Subscription Class activities table found below. 103
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 13 Subscription Based Information Technology Arrangements (Continued) A. Subscriptions Payable (Continued)
SPIDR Platform
On July 1, 2022, the City entered into a 19-month subscription for the use of SPIDR Platform. An initial subscription liability was recorded in the amount of $48,884. As of June 30, 2023, the value of the subscription liability is $0. The City is required to make annual fixed payments of $49,500. The subscription has an interest rate of 2.0240%. The value of the right to use asset as of June 30, 2023 of $48,884 with accumulated amortization of $9,777 is included with Software on the Subscription Class activities table found below.
Tyler Software
On July 1, 2022, the City entered into a 14-month subscription for the use of Tyler Software. An initial subscription liability was recorded in the amount of $362,971. As of June 30, 2023, the value of the subscription liability is $51,104. The City is required to make annual fixed payments of $311,867. The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $711,898 with accumulated amortization of $142,380 is included with Software on the Subscription Class activities table found below.
Velosimo Software Integration Platform
On July 1, 2022, the City entered into a 40-month subscription for the use of Velosimo Software Integration Platform. An initial subscription liability was recorded in the amount of $141,771.67. As of June 30, 2023, the value of the subscription liability is $97,829. The City is required to make annual fixed payments of $45,000. The subscription has an interest rate of 2.1840%. The value of the right to use asset as of June 30, 2023 of $153,772 with accumulated amortization of $30,754 is included with Software on the Subscription Class activities table found below. The City has 5 extension option(s), each for 12 months.
Virtual Project Manager Software
On July 1, 2022, the City entered into a 14-month subscription for the use of Virtual Project Manager Software.
An initial subscription liability was recorded in the amount of $13,862. As of June 30, 2023, the value of the subscription liability is $1,995. The City is required to make monthly fixed payments of $1,000. The subscription has an interest rate of 1.7100%. The value of the right to use asset as of June 30, 2023 of $13,862 with accumulated amortization of $2,772 is included with Software on the Subscription Class activities table found below. The City has 1 extension option(s), each for 12 months.
The following is a summary of changes in subscriptions of the City for the year ended June 30, 2023:
Additions Deletions
-$ 1,720,127$ 404,808$ 841,929$ 1,283,006$ 470,636$ Beginning
Balance Adjustments Ending Balance
Due in
One Year
-$ 781,586$ -$ 294,505$ 487,080$ 231,590$ Business-Type Activities
Governmental Activities
Beginning
Balance Adjustments Ending Balance
Due in
One Year
104
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 13 Subscription Based Information Technology Arrangements (Continued) A. Subscriptions Payable (Continued)
Future principal and interest requirements to maturity for the combined subscription liability as of June 30, 2023 were as follows:
Asset Class Subscription Asset Value Accumulated Amortization Software 4,028,879$ 775,120$
Total Subscriptions 4,028,879$ 775,120$ Year ending
June 30, Principal Interest Total Payments
2024 470,636$ 26,812$ 497,448$ 2025 448,525 16,670 465,194 2026 157,155 6,748 163,903 2027 109,196 3,850 113,046 2028 47,602 1,667 49,269 2029 49,893 853 50,746 Total 1,283,006$ 56,601$ 1,339,606$ Year ending
June 30, Principal Interest Total Payments
2024 231,589$ 10,584$ 242,174$ 2025 255,491 5,580 261,071 Total 487,080$ 16,164$ 503,245$ Amount of Subscription Assets by Major Classes of Underlying Asset Future Principal and Interest Requirements
Governmental Activities
Business-Type Activities
Note 14 Pension Plans
A. California Public Employees Retirement Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the Citys Miscellaneous Plan or the Citys Safety Plan, both agent multiple-employer defined benefit pension plans administered by the California Public Employees Retirement System (C alPERS), which acts as a common investment and administrative agent for its participating member employers. Benefit provisions under the Plans are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
105
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued)
Benefits Provided
CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 (52 under PEPRA) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor
Benefit, or the Optional Settlement 2W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees Retirement Law.
The Plans provisions and benefits in effect at June 30, 2023, are summarized as follows:
Miscellaneous Plan
Tier 1* Tier 2 PEPRA
Hire date
Prior to
April 22, 2011
New Member on or
after April 22, 2011, but
prior to January 1, 2013
New Member on
or after January 1,
2013
Benefit formula 3% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 52
Monthly benefits, as a % of eligible
compensation 2.0% to 3.0% 1.092% to 2.418% 1.0% to 2.5% Member paid contribution rate 8.0% 7.0% 7.75%
Employer Contribution rate
normal cos
t 22.18% 18.03% 14.89%
Safety Fire Plan
Tier 1* Tier 2 PEPRA
Hire date
Prior to
April 22, 2011
New Member on or
after April 22, 2011, but
prior to January 1, 2013
New Member on
or after January 1,
2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible
compensation 3.00% 2.4% to 3.0% 2.0% to 2.7%
Member paid contribution rate 9.0% 9.0% 14.25%
Employer contribution rate
normal cost 30.13% 33.11% 25.53%
*Closed to new entrants
106
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued) Safety Police Plan
Tier 1* Tier 2 PEPRA
Hire date
Prior to
April 22, 2011
New Member on or
after April 22, 2011,
but prior to January 1,
2013
New Member on or
after January 1,
2013
Benefit formula 3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 50
Monthly benefits, as a % of eligible
compensation 3.00% 2.4% to 3.0% 2.0% to 2.7%
Member paid contribution rate 9.0% 9.0% 14.25%
Employer contribution rate
normal cost 33.78% 34.99% 29.01%
Employees Covered
At June 30, 2023, the following employees were covered by the benefit terms of the plans:
Miscellaneous Plan
Inactive employees or beneficiaries currently receiving benefits 924 Inactive employees entitled to but not yet receiving benefits 761 Active employees 619
Total 2,304
Safety Plan
Inactive employees or beneficiaries currently receiving benefits 399 Inactive employees entitled to but not yet receiving benefits 121 Active employees 400
Total 920
Contribution Description
Section 20814(c) of the California Public Employees Retirement Law (PERL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS annual actuarial valuation process. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the employer to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions. $6,529,685 and $10,002,548 of contributions for the Miscellaneous and Safety Plan respectively, were recognized as a reduction to the net pension liability for fiscal year ending June 30, 2023.
107
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued)
Actuarial Methods and Assumptions Used to Determine Total Pension Liability
The June 30, 2021, valuation was rolled forward to determine the June 30, 2022, total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements of G ASB 68 Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.50%
Salary Increases V aries by Entry Age and Service
Mortality Rate Table
1 Derived using CalPERS' membership data for all funds
Post Retirement Benefit Increase
1 The mortality table was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2017 CalPERS Ex perience Study for the period from 1997 to 2015. Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Ex perience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website.
Contract COLA up to 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter.
Long-term Expected Rate of Return
In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated and combined with risk estimates, are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. The expected real rates of return by asset class are as follows:
Assumed
Asset Real Return
Asset Class Allocation Years 1-10 1,2
Global equity cap weighted 30.00% 4.45%
Global equity non-cap weighted 12.00% 3.84%
Private equity 13.00% 7.28%
Treasury 5.00% 0.27%
Mortgage-backed securities 5.00% 0.50%
Investment grade corp 10.00% 1.56%
High yield 5.00% 2.27%
Emerging market debt 5.00% 2.48%
Private debt 5.00% 3.57%
Real assets 15.00% 3.21%
Leverage -5.00% -0.59%
1 An expected inflation rate of 2.30% is used for this period. 2 Figures are based on the 2021-22 Asset Liability Management study.
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CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 6.90%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plans fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Amortization of Deferred Outflows and Deferred Inflows of Resources
Under GASB 68, gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss:
Net Difference between projected 5-year straight-line amortization and actual earnings on pension
plan investments
All other amounts Straight-line amortization over the expected average remaining service lifetime (EARSL) of all members
that are provided with benefits (active, inactive, and
retired) at the beginning of the measurement period.
(3.0 years for Miscellaneous and 5.0 years for Safety)
109
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued)
Changes in the Net Pension Liability
The following table shows the changes in net pension liability recognized over the measurement period.
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (c) = (a) - (b)
Miscellaneous Plan:
Balance at: 06/30/2021 612,197,549$ 691,288,629$ (79,091,080)$ (Valuation Date)
Changes Recognized for the
Measurement Period:
Service Cost 10,380,919 - 10,380,919 Interest on Total Pension Liability 42,332,179 - 42,332,179 Changes of Assumptions 18,477,304 - 18,477,304 Differences Between Expected and
Actual Experience (6,575,745) - (6,575,745) Net Plan to Plan Resource Movement 2,001 (2,001) Contributions - Employer - 6,529,685 (6,529,685) Contributions - Employees - 4,348,890 (4,348,890) Net Investment Income - (51,347,007) 51,347,007 Benefit Payments, Including Refunds of
Employee Contributions (31,559,480) (31,559,480) - Administrative Expense - (430,632) 430,632 Net Changes During 2021-22 33,055,177 (72,456,543) 105,511,720 Balance at: 06/30/2022 645,252,726 618,832,086 26,420,640 (Measurement Date)
Safety Plan:
Balance at: 06/30/2021 591,629,550 673,312,358 (81,682,808) (Valuation Date)
Changes Recognized for the
Measurement Period:
Service Cost 14,319,314 - 14,319,314 Interest on Total Pension Liability 41,558,338 - 41,558,338 Changes of Assumptions 23,527,391 23,527,391 Differences Between Expected and
Actual Experience (6,077,244) - (6,077,244) Net Plan to Plan Resource Movement (2,001) 2,001 Contributions - Employer - 10,002,548 (10,002,548) Contributions - Employees - 5,197,226 (5,197,226) Net Investment Income - (50,226,472) 50,226,472 Benefit Payments, Including Refunds of
Employee Contributions (27,889,190) (27,889,190) - Administrative Expense - (419,433) 419,433 Net Changes During 2021-22 45,438,609 (63,337,322) 108,775,931 Balance at: 06/30/2022 637,068,159 609,975,036 27,093,123 (Measurement Date)
Total - All Plans 1,282,320,885$ 1,228,807,122$ 53,513,763$ 110
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rates
The following presents the net pension liability of the Plans as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
Discount Rate - 1%
(5.90%)
Current Discount Rate
(6.90%)
Discount Rate +1%
(7.90%)
Miscellaneous Plan 110,636,509$ 26,420,640$ (43,237,622)$ Safety Plan 118,262,791 27,093,123 (47,132,069) TOTAL 228,899,300$ 53,513,763$ (90,369,691)$
Pension Plan Fiduciary Net Position
Detailed information about the plans fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.
Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions
For the year ended June 30, 2023, the City incurred pension expense of $11,690,143 and incurred pension expense of $13,728,343 for the Miscellaneous and Safety Plans, respectively. At June 30, 2023, the City had deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Miscellaneous Plan
Contributions Subsequent to Measurement Date 5,143,861$ -$ Changes of Assumptions 12,318,203 -
Differences Between Expected and Actual Experience - (5,130,273) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 39,613,883 -
Subtotal - Miscellaneous Plan 57,075,947 (5,130,273) Safety Plan
Contributions Subsequent to Measurement Date 11,371,612 - Changes of Assumptions 18,821,913 -
Differences Between Expected and Actual Experience 894,291 (10,172,521) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 39,046,174 -
Subtotal - Safety Plan 70,133,990 (10,172,521) Total - All Plans 127,209,937$ (15,302,794)$
111
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 14 Pension Plans (Continued)
A. California Public Employees Retirement Plans (Continued)
The $5,143,861 and $11,371,612 for the Miscellaneous and Safety Plan, respectively, reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal Years
Ending June 30, Miscellaneous Safety Total
2024 10,680,493$ 9,876,932$ 20,557,425$
2025 11,035,158 8,655,368 19,690,526
2026 5,429,585 7,671,796 13,101,381
2027 19,656,577 22,385,761 42,042,338
2028 - - -
Deferred Outflows/(Inflows) of Resources
B. Defined Contribution Pension Plan
The City provides pension plan benefits for all of its part-time hourly employees through a defined contribution plan (Public Agency Retirement Plan). In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. The plan is administered by Public Agency Retirement Services (PARS). All part-time employees are eligible to participate from the date of employment. Federal legislation requires contributions of at least 7.5% to a retirement plan, and City Council resolved to match the employees contributions of 3.75%. The Citys contributions for each employee (and interest earned by the accounts) are fully vested immediately. The authority to establish or amend the plans provisions resides with City Council.
For the year ended June 30, 2023, the Citys total hourly payroll (for eligible PARS members) and covered payroll was $3,157,580. The City made employer contributions of $118,409 (3.75% of current covered payroll), and employees contributed $118,409 (3.75% of current covered payroll).
C. Deferred Compensation 457B Plan
The City offers to its employees an optional deferred compensation plan created in accordance with Section 457 of the Internal Revenue Code. This plan is available to substantially all employees and allows participants to defer a portion of their current income until future years, up to a maximum of $22,500 (in whole dollars) per calendar year, so as to shelter such funds and earnings from state and federal taxation until withdrawal. The deferred compensation is not available to participants until termination, retirement, death, or unforeseeable emergency.
This plan is administered through a third party administrator. The City does not perform the investing function and has no fiduciary accountability for the plan. Thus, plan assets and any related liability to plan participants have been excluded from the Citys financial statemen ts. At June 30, 2023, the balance in the plan was $122,485,669.
Note 15 Post Retirement Health Benefits
A. Defined Benefit Other-Post Employment Benefits Plan
Plan Description
The City administers a single-employer defined-benefit post-employment healthcare plan (the Plan). Dependents are eligible to enroll, and benefits continue to surviving spouses.
112
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 15 Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued)
Benefits Provided
Pre-Medicare Miscellaneous employees hired before January 1, 2011, and Safety employees hired before April 22, 2011, pay 100% of the pre-Medicare active/retiree blended rate. All other pre-Medicare employees pay 100% of the unblended (pure retiree) pre-Medicare premium. Medicare retirees pay 100% of the unblended (pure retiree) premium.
Employees Covered by Benefit Terms
At June 30, 2021 (the census date), the benefit terms covered the following employees:
Active 444
Inactive employees or beneficiaries currently receiving benefits 367 Inactive employees entitled to, but not yet receiving benefits - 811
The information above does not reflect eligible retirees that are in the process of enrolling in the healthcare plan.
Contributions
The City pays benefits as they come due.
Contribution Rate: Benefits due
Reporting period contributions: $1,482,784 (includes implicit subsidy credit)
Total OPEB Liability
The City's total OPEB liability was valued as of June 30, 2021 and was used to calculate the total OPEB liability measured as of June 30, 2023.
Actuarial Assumptions
The total OPEB liability in the June 30, 2023, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
Measurement Date 6/30/2023
Discount Rate 3.86%
Inflation 2.30%
Health Cost Trend Rates
Pre-Medicare 6.00% *
Medicare 4.00% *
Salary Increases 2.80% **
Mortality Rates Based on CalPERS tables.
** Additional merit-based increases based on CalPERS
merit salary increase tables.
* Trending down to 3.94% over 55 years. Applies to
calendar years.
113
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 15 Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued)
Projections of the sharing of benefit-related costs are based on an established pattern of practice.
Experience studies come from the CalPERS Pension Assumption Model, revised May 14, 2018.
Inactive employees (retirees) pay 100% of the cost of benefits.
There were no ad hoc post-employment benefit changes (including ad hoc COLAs) to the plan.
There were no changes between the measurement date and the report date that are expected to have a significant effect on the net OPEB liability.
Discount Rate
The discount rate used to measure the total OPEB liability is 3.86%. The City's OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high-quality 20-year municipal bonds, as of the valuation date.
Trust Assets
There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits.
Changes in the Total OPEB Liability
The changes in the Total OPEB Liability for the Plan are as follows:
Increase (Decrease)
Total OPEB Liability
Balance at June 30, 2022 27,450,132$
Changes recognized over the measurement period:
Service Cost 1,255,377
Interest 1,031,876
Differences between actual and ex pected ex perience -
Changes of assumptions (550,759)
Implicit rate subsidy fulfilled (1,482,784)
Net Changes 253,710
Balance at June 30, 2023 27,703,842$
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate
Sensitivity of the total OPEB liability to changes in the discount rate. The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower (2.86%) or one percentage point higher (4.86%) follows:
1% Decrease Discount Rate 1% Increase
2.86% 3.86% 4.86%
Total OPEB Liability 29,488,752$ 27,703,842$ 26,010,950$ Increase (Decrease) 1,784,910 (1,692,892)
% Change 6.4% -6.1%
114
•
•
•
•
•
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 15 Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued)
Sensitivity of the Total OPEB Liability to Changes in the Healthcare Cost Trend Rate
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The healthcare trend for this valuation started at 7.00% and decreased to 3.94% over 55 years. The total OPEB liability of the City, as well as what the City's total OPEB liability would be if it were calculated using healthcare cost trend rates that are one percentage point lower (6.00%) or one percentage point higher (8.00%) than current healthcare cost trend rates follows:
1% Decrease 1% Increase
6.00% 7.00% 8.00%
Total OPEB Liability 24,899,219$ 27,703,842$ 30,883,071$ Increase (Decrease) (2,804,623) 3,179,229
% Change -10.1% 11.5%
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the report year ended June 30, 2023, the City recognized an OPEB expense of $3,724,974. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of Assumptions 1,528,347$ (3,481,215)$ Differences Between Expected and Actual Experience 4,996,806 - Total 6,525,153$ (3,481,215)$
Amounts reported as deferred outflows or deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
Fiscal Years
Ending June 30,
Deferred
Outflows/(Inflows)
of Resources
2024 1,434,999
2025 1,403,234
2026 547,422
2027 (274,083)
2028 (67,634)
Remaining -
The effects on the total OPEB liability of (1) changes of economic and demographic assumptions or of other inputs and (2) differences between expected and actual experience are required to be included in OPEB expense in a systematic and rational manner over a closed period equal to the average of the expected remaining service lives of all employees that are provided with benefits through the OPEB plan (active employees and inactive employees),
115
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 15 Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued)
beginning in the current period. The expected average remaining service lives (EARSL) for the current period is
5.7 years. Note, however that for calculation purposes, we use 1 when calculating amortizations if the EARSL is less than 1 year.
B. Defined Contribution Other Post-Employment Benefits Plan
The City offers eligible retiring employees a Post-Employment Health Plan (PEHP). This plan is administered through a third-party administrator. PEHP is a tax-exempt Voluntary Employees Beneficiary Association (VEBA) Trust, which provides employee benefits pursuant to IRC Code Section 501(c)(9). PEHP creates a defined contribution health reimbursement program that allows for money to be set aside to pay for future medical expenses. PEHP is funded with mandatory eligible employee contributions. Depending on the bargaining unit and its respective plan agreements, these mandatory contributions can be unused vacation and/or compensatory time off due to the employee at the time of retirement. At June 30, 2023, the balance of the assets held by the trustee for this plan was $1,616,431.
Note 16 Commitments and Contingencies
Litigation
The City is presently involved in certain matters of litigation that have risen in the normal course of conducting City business. City management believes, based upon consultation with the City Attorney, that these cases, in the aggregate, are not expected to result in a material adverse financial impact on the City as the Citys insurance programs are sufficient to cover any potential losses should an unfavorable outcome materialize . However, the City Attorney also estimates that in the event of an adverse ruling, certain pending lawsuits and claims have a remote possibility of resulting in an additional liability, in the aggregate, up to an amount of approximately $65 million, of which, any amount exceeding $50 million would not be covered by insurance. The potential liabilities related to these claims are not individually accrued because it is not probable that a loss has been incurred as of June 30, 2023.
Grants
The City participates in a number of federally assisted grant programs, including those from the U.S. Department of Housing and Urban Development, U.S. Department of Justice, U.S. Department of Treasury, U.S. Department of Transportation, and the U.S. Department of Education. Receipts from these grant programs are subject to audit to determine if the monies were expended in accordance with appropriate statues, grant terms and regulations. The City believes no significant liabilities will result on this audit.
Construction Commitments
Expenditures Remaining
Project Description PO Amount to Date Balance
Bike Lane Improv Broadway Ph I Bike Lanes on Broadway 3,568,000$ 3,018,636$ 549,364$ Traffic Sig Sys-Fiber Network 3,200,000 1,751,218 1,448,782 Major Pavement Rehab FY17/18 Bonita Rd & Allen School Lane 3,010,780 2,622,890 387,890 Loma Verde Quatic and Rec Ph I 12,812,639 8,329,869 4,482,770
Encumbrances
At June 30, 2023, there were encumbrances of $13,485,675 in the General Fund, $31,818,763 in the Federal, State, and Local Grants Fund, $1,429 in the Housing Successor Agency, $31,166,079 in the Development Impact Fee Fund, $3,743,427 in the Sewer Fund, $1,050,728 in the Development Services Fund, $2,661 in the Sewer Development Impact Fees Fund, and $12,995,742 in the non-major funds. 116
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 16 Commitments and Contingencies (Continued)
Successor Agency Long-Range Property Management Plan
The City, acting as the Successor Agency to the Chula Vista Redevelopment Agency, prepared a Long-Range Property Management Plan (LRPMP) in compliance with AB 1484. The Successor Agency Oversight Board reviewed and approved the LRPMP on May 12, 2014 and submitted it to the California Department of Finance for review on May 27, 2014. The Department of Finance approved the LRPMP in their July 15, 2014, determination letter. 117
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 17 Classification and Fund Balances
118
Majorl'lmds
Federal, State, Housing Otller
General and Local Grants Successor Development Govermnental 1'lmd 1'lmd Alie~ 1-etF\md Fbods Total
Nonspeadallle
Prepaid costs $ 670,923 $ 32.542 $ - $ - $ 458,366 1,161,831 Due ftom su:cessor Agency of Chula Vma RDA 2,291,340 2,291,340 AlivaB:es to odlet funds 2,340,621 ~340,621
Total Nonspendable 5,302.883 32,542 458,366 5,793,791
Restricted
Section 115 Trust fur Pension 25,613.596 25,673,596
Cultural Ar1s 12.778 12,778
F.nviromnomal Services 1,585,221 1,585,221
Federal Grants 1,336,219 1,336,219
State Grants 11,699,109 11,699,109
Local Gtan1S 5,096,204 5,096,204
COlDlllllity and homing development 13,590,518 13,590,518 Public facilities 22,297,812 22,297,812
Drainage fitcililies 3,491,835 3,491,835
Pedestrian Bridge DIF 4,588,358 4,588,358
Traffic sigtlQI and saiety 974,605 974,605
Transporllllion improvemon1S 52,965,001 24,822,607 77,787,608 Hot,m Program 5,587,150 5,587,150
CDBG Programs 114,130 114,130
Parle acquisitions and development 44,258,228 44,258,228 Parl<ing m,ter services 1,363,439 1,363,439
Public Educational & Govt Fee 620,712 620,712
Debt Service 5,254,154 5,254,154
Developer Conlrilnlions 5,286,572 5,286,572
Donations 626,761 626,761
National Opioid Settlement &l,161 81,161
Public Benefit Contnlmlion 246,927 246,927
Imlus1rial Development 56 56
LRBs 3,398 3,398
Storm drains 2,724,040 2,724,040
Open space maintenance 51,118,424 51,118,424
Telecom Utility Tax 102,983 102,983
Mobile home admin ree 234,078 234,078
Assessment district iiq,rovemen1S 1,116,155 1,116,155
Total Restricted 25,673,596 19,729,530 13,590J18 84J17,612 143~975 286,87~31 Committed
Economic contingency 9,693,445 9,693,445
Cataslrophic even1S conlingency 4,218,831 4,218,831
Measm, A Reserve 4,340,757 4,340,757
Total Coimmtted 18,253,033 18,253,033
Asslaned
City Attorney 3,100 3,100
tomrmation Technology Services Department 52,324 52,324 HtJmll Resources 25,750 25,750
Noo-DeparlnJ,Dlal 1,707,919 1,707,919
Animal care Services 83,000 83,000
Economic Development 220,425 220,425
Develop-Services 4,195 4,195
F.ngineering 158,307 158,307
Police Depar1menl 542 542
Fire Department 393,014 393,014
Public Works Depar1menl 676,106 676,106
Recreation Depar1menl 33,955 33,955
Measure P Sales Tax 25,068,097 25,068,097
Measm, A Sales Tax 44,761,420 44,761,420
AI$ 552,266 552,266
BayftontLease Reveuue 519,111 519,111
Flexible Spending Accomt 1,006,426 1,006,426
Public liabillty 481,044 481,044
Total .Assiped 75,747,000 75,747,000
Unassigned 24,895,945 {2,429,0~ 22~891
Total l'llnd Balances $ 149,872,457 19,762,072 $ 13,590,518 $ 84,317,612 141,590,287 409,132,946
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 18 Restatements of Fund Balance and Net Position A. Statement of Activities
For the fiscal year ended June 30, 2023, the Government-Wide Statement of Activities reported the following adjustments to beginning net position:
Governmental Business-Type
Activities Activities Total
Beginning Net Position, as Originally Reported 1,260,494,773$ 460,254,402$ 1,720,749,175$ Restatements:
Other Governmental Funds
1 644,757 - 644,757 Sewer Fund
2 - 40,042 40,042 Development Services Fund
3 - 70,386 70,386 Governmental Activities
4, 5
16,623,669 - 16,623,669 Total Restatements 17,268,426 110,428 17,378,854 Beginning Net Position, as Restated 1,277,763,199$ 460,364,830$ 1,738,128,029$ Government-Wide Statements
1. The restatement to the Developer Contributions of a $158,472 increase to properly reflect developer contributions previously recorded as a deposit payable. The restatement to the Donations account of $486,285 was to recognize donations previously recorded in a deposit account.
2. The $40,042 restatement to the Sewer Fund is due to the implementation of GASB 96 Subscription- Based Information Technology Arrangements.
3. The $70,386 restatement to the Development Services Fund is due the implementation of GASB 96 Subscription-Based Information Technology Arrangements.
4. The City was notified in the last quarter of fiscal year 2023 that SANDAG had revised the division of assets for the Bus Rapid Transit project between the City, MTS, and SANDAG. Through this process it was identified that there were additional expenses related to previously donated assets that were recorded in a restatement to infrastructure assets of $15,588,402.
5. The $1,035,267 restatement to the Governmental Activities is due to the implementation of GASB 96 Subscription-Based Information Technology Arrangements.
B. Statement of Changes in Fiduciary Net Position
For the fiscal year ended June 30, 2023, the City restated the beginning net position of the Custodial Funds by $15,221,591. This prior period adjustment was made to correct the implementation of GASB Statement No. 84, done during the prior year. Further clarifications received from the GASB Board subsequent to the issuance of the prior years financial statements resulted in the removal of cash held for future bond repayment of conduit debt from Net Position. This amount is now reflected as a current liability, Due to Bondholders, within the Custodial Funds.
For the fiscal year ended June 30, 2023, the City restated the beginning net position of the Special Tax District Fund by a ($47,202,668) and the CV Bayfront Facilities Financing Authority by $47,202,668. This prior period
119
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2023
Note 18 Restatements of Fund Balance and Net Position (Continued) B. Statement of Changes in Fiduciary Net Position (Continued)
adjustment was to correct the presentation of the loan between these two entities, removing the working capital advance and recording a transfer between these funds.
Note 19 Change in Reporting Entity
The V2 Pub Benefit Contribution column was displayed separately in the prior year. This represents a specific type of Developer Contribution and the prior year balance of $376,964 has been combined with the Developer Contribution column in the current years statements.
Note 20 - Special Item
City Loan to Successor Agency
The City of Chula was successful in appealing a decision made by the California State Department of Finance (DOF).
The decision reversed the DOF decision regarding two of the three General Fund loans, including interest, to the Successor Agency. These loans and accumulated interest are reflected within the financial statements. It is anticipated that the Agency will repay these loans from Redevelopment Property Tax Trust Fund distributions. The decision determined the remaining loan to be partially eligible for reimbursement. This resulted in the need to record a Special Item for $2,765,896 as an expenditure in the General Fund Statements and a revenue of $4,788,560 to the Successor Agency, as this loan and any accumulated interest will not be paid back.
120
REQUIRED SUPPLEMENTARY
INFORMATION
121
122
CITY OF
CHULA VISTA
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 139,693,061$ 139,693,061$ 139,693,061$ -$ Resources (Inflow):
Taxes 193,879,210 211,147,227 212,614,370 1,467,143 Licenses and permits 1,876,629 1,876,629 1,918,966 42,337 Intergovernmental 3,397,036 2,046,900 1,599,601 (447,299) Charges for services 16,250,400 15,322,642 16,801,890 1,479,248 Use of money and property 3,518,678 3,534,114 7,394,696 3,860,582 Fines and forfeitures 956,914 956,914 1,084,498 127,584 Developer participation 1,582,377 1,582,377 1,226,902 (355,475) Miscellaneous 2,844,552 6,200,409 5,881,087 (319,322) Transfers in 27,985,568 40,766,171 16,144,177 (24,621,994) Issuance of debt - - - -
Amounts Available for Appropriations 391,984,425 423,126,444 404,359,248 (18,767,196) Charges to Appropriations (Outflow):
Current
General government:
City council 1,596,058 1,756,626 1,286,463 470,163 City clerk 1,304,861 1,571,395 1,393,269 178,126 City attorney 3,122,611 3,297,670 2,789,883 507,787 Administration 2,573,930 2,692,838 2,382,512 310,326 Information technology 4,147,298 5,027,858 4,361,576 666,282 Human resources 3,059,493 3,428,106 3,421,513 6,593 Finance 6,446,914 13,762,917 11,070,054 2,692,863 Non-departmental 7,684,961 10,801,953 9,478,891 1,323,062 Boards and commissions 8,536 35,977 7,950 28,027
Public Safety:
Police 65,371,273 64,961,011 64,296,774 664,237 Fire 38,049,291 43,440,781 41,878,712 1,562,069 Animal care facility 3,233,863 3,278,324 3,132,117 146,207 Community development:
Economic development 3,917,918 4,437,974 1,944,134 2,493,840 Development services 2,638,984 6,124,161 5,831,663 292,498 Parks and recreation 11,917,364 4,871,152 4,871,128 24 Public Works:
Public works 13,627,942 21,899,297 20,890,477 1,008,820 Engineering 9,939,608 9,948,858 9,639,225 309,633 Library 3,587,277 3,724,804 3,446,180 278,624 Capital outlay 13,069,697 61,161,993 34,943,829 26,218,164 Debt service:
Principal retirement 1,175,228 1,175,228 1,165,140 10,088 Interest and fiscal charges 120,271 120,271 110,183 10,088 Transfers out 38,072,157 49,413,093 36,259,182 13,153,911 Total Charges to Appropriations 234,665,535 316,932,287 264,600,855 52,331,432 Budgetary fund Balance, June 30 157,318,890$ 106,194,157$ 139,758,393$ (71,098,628)$ Budget Amounts
The notes to required supplementary information are an integral part of this schedule. 123
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
FEDERAL, STATE, AND LOCAL GRANTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 3,550,581$ 3,550,581 $ 3,550,581 $ - $ Resources (Inflow):
Intergovernmental 66,551,766 109,403,334 51,239,391 (58,163,943) Charges for services 1,588,455 1,703,455 1,859,197 155,742 Use of money and property (498,916) (723,053) 1,126,802 1,849,855 Developer participation - - 26,554 26,554
Miscellaneous 182,333 198,833 799,473 600,640 Transfers in 463,959 500,628 491,287 (9,341) Amounts Available for Appropriations 71,838,178 114,633,778 59,093,285 (55,540,493) Charges to Appropriations (Outflow):
Curren
t
General government:
Finance 2,079,652 5,663,321 3,411,467 2,251,854 Public Safety:
Police 8,433,611 10,118,746 8,315,412 1,803,334 Fire 189,019 867,634 418,812 448,822 Animal care facility - 128,372 60,946 67,426
Community development:
Economic development 5,608,117 6,496,677 4,754,230 1,742,447 Development services 1,554,066 26,972,243 9,852,340 17,119,903 Public Works:
Public works 1,600,000 3,169,607 3,169,593 14 Library - 73,567 72,820 747
Capital outlay 20,301,564 71,693,117 37,169,818 34,523,299 Transfers out 31,591,896 26,522,692 3,595,097 22,927,595 Total Charges to Appropriations 71,357,925 151,705,976 70,820,535 80,885,441 Budgetary fund Balance, June 30 480,253 $ (37,072,198)$ (11,727,250) $ 25,344,948 $ Budget Amounts
The notes to required supplementary information are an integral part of this schedule. 124
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
HOUSING SUCCESSOR AGENCY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 13,068,795$ 13,068,795$ 13,068,795$ -$ Resources (Inflow):
Use of money and property 215,000 215,000 466,994 251,994 Miscellaneous 255,000 255,000 143,487 (111,513) Amounts Available for Appropriations 13,538,795 13,538,795 13,679,276 140,481 Charges to Appropriations (Outflow):
Current
General government:
Development services 2,072,400 2,074,220 6,166 2,068,054 Transfers out 9,858 9,858 5,262 4,596
Total Charges to Appropriations 2,082,258 2,084,078 11,428 2,072,650 Budgetary fund Balance, June 30 11,456,537$ 11,454,717$ 13,667,848$ 2,213,131$ Budget Amounts
The notes to required supplementary information are an integral part of this schedule. 125
CITY OF CHULA VISTA
MISCELLANEOUS PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
1 2015 2016 2017 2018
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017
TOTAL PENSION LIABILITY
Service Cost 8,696,183$ 8,570,421$ 8,451,918$ 9,370,865$ Interest 32,359,841 34,103,210 35,618,575 36,639,997 Difference Between Expected and Actual Experience - 925,960 (2,524,995) (6,331,454) Changes of Assumptions - (8,500,698) - 30,693,812
Benefit Payments, Including Refunds of Employee Contributions (18,639,387) (19,539,333) (21,022,078) (23,072,106) Net Change in Total Pension Liability 22,416,637 15,559,560 20,523,420 47,301,114 Total Pension Liability - Beginning 436,436,153 458,852,790 474,412,350 494,935,770 Total Pension Liability - Ending (a) 458,852,790 474,412,350 494,935,770 542,236,884
PLAN FIDUCIARY NET POSITION
Contribution - Employer 9,134,182 13,499,144 12,461,946 13,663,149 Contribution - Employee 4,555,300 3,679,749 3,764,641 3,536,418 Plan to Plan Resource Movement - 5,268 - -
Net Investment Income 48,303,496 7,195,063 1,747,676 36,763,992 Benefit Payments, Including Refunds of Employee Contributions (18,639,387) (19,539,333) (21,022,078) (23,072,106) Administrative Expense - (368,694) (199,512) (478,539) Other Miscellaneous Income/(Expense) - - - -
Net Change in Fiduciary Net Position 43,353,591 4,471,197 (3,247,327) 30,412,914 Plan Fiduciary Net Position - Beginning 279,540,671 322,894,262 327,365,459 324,118,132 Plan Fiduciary Net Position - Ending (b) 322,894,262 327,365,459 324,118,132 354,531,046 Plan Net Pension Liabilit
y/(Assets) - Ending (a) - (b) 135,958,528$ 147,046,891$ 170,817,638$ 187,705,838$
70.37% 69.00% 65.49% 65.38%
Covered Payroll 42,760,249$ 44,135,521$ 45,990,463$ 44,435,640$ 317.96% 333.17% 371.42% 422.42%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
1 Fiscal Year 2015 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows. Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. No changes in 2020 or 2021. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.
Benefit Changes:
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occured on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary.
The notes to required supplementary information are an integral part of this schedule. 126
2019 2020 2021 2022 2023
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
9,048,165$ 8,696,267$ 8,953,165$ 9,145,103$ 10,380,919$ 37,305,907 38,721,727 40,325,600 41,542,929 42,332,179 (8,223,685) (413,302) 2,562,816 (3,234,587) (6,575,745) (4,314,060) - - - 18,477,304
(24,924,595) (27,001,672) (28,353,268) (29,875,845) (31,559,480) 8,891,732 20,003,020 23,488,313 17,577,600 33,055,177 542,236,884 551,128,616 571,131,636 594,619,949 612,197,549 551,128,616 571,131,636 594,619,949 612,197,549 645,252,726 14,479,069 16,244,599 18,211,675 205,182,523 6,529,685 3,603,297 3,592,996 3,800,444 3,856,589 4,348,890
(874) - - - 2,001
30,032,849 24,600,973 19,625,933 106,512,033 (51,347,007) (24,924,595) (27,001,672) (28,353,268) (29,875,845) (31,559,480) (552,457) (268,407) (554,440) (405,588) (430,632) (1,049,125) 874 - - -
21,588,164 17,169,363 12,730,344 285,269,712 (72,456,543) 354,531,046 376,119,210 393,288,573 406,018,917 691,288,629 376,119,210 393,288,573 406,018,917
691,288,629 618,832,086
175,009,406$ 177,843,063$ 188,601,032$ (79,091,080)$ 26,420,640$
68.25% 68.86% 68.28% 112.92% 95.91%
44,578,340$ 45,798,549$ 47,627,626$ 48,617,605$ 57,341,438$ 392.59% 388.32% 395.99% -162.68% 46.08%
The notes to required supplementary information are an integral part of this schedule. 127
CITY OF CHULA VISTA
SAFETY PLAN
SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS 1
2015 2016 2017 2018
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017
TOTAL PENSION LIABILITY
Service Cost 10,220,233$ 9,646,806$ 9,971,492$ 11,594,959$ Interest 28,334,465 29,979,452 31,658,073 33,213,616 Difference Between Expected and Actual Experience - 460,215 768,421 (1,210,352) Changes of Assumptions - (7,813,969) - 29,393,364
Benefit Payments, Including Refunds of Employee Contributions (15,869,862) (17,767,853) (19,460,670) (20,397,814) Net Change in Total Pension Liability 22,684,836 14,504,651 22,937,316 52,593,773 Total Pension Liability - Beginning 380,617,699 403,302,535 417,807,186 440,744,502 Total Pension Liability - Ending (a) 403,302,535 417,807,186 440,744,502 493,338,275
PLAN FIDUCIARY NET POSITION
Contribution - Employer 11,684,174 7,555,357 10,971,712 11,670,017 Contribution - Employee 3,157,921 3,230,989 3,420,273 3,620,014 Plan to Plan Resource Movement 47,649,285 6,999,744 1,664,170 35,554,749 Net Investment Income (15,869,862) (17,767,853) (19,460,670) (20,397,814) Benefit Payments, Including Refunds of Employee Contributions - (359,830) (194,899) (466,842) Administrative Expense - - - -
Other Miscellaneous Income/(Expense) - - - -
Net Change in Fiduciary Net Position 46,621,518 (341,593) (3,599,414) 29,980,124 Plan Fiduciary Net Position - Beginning 273,515,399 320,136,917 319,795,324 316,195,910 Plan Fiduciary Net Position - Ending (b) 320,136,917 319,795,324 316,195,910 346,176,034 Plan Net Pension Liability/(Assets) - Ending (a) - (b) 83,165,618$ 98,011,862$ 124,548,592$ 147,162,241$
79.38% 76.54% 71.74% 70.17%
Covered Payroll 34,243,101$ 34,117,846$ 37,174,663$ 37,817,316$ 242.87% 287.27% 335.04% 389.14%
Notes to Schedule of Changes in Net Pension Liability and Related Ratios:
Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Plan Net Pension Liability/(Asset) as a Percentage of Covered Payroll Changes of Assumptions: Effective with the June 30, 2021 valuation date (2022 measurement date), the accounting discount rate was reduced from 7.15% to 6.90%. In determining the long-term expected rate of return, CalPERS took into account long-term market return expectations as well as the expected pension fund cash flows.
Projected returns for all asset classes are estimated, combined with risk estimates, and are used to project compound (geometric) returns over the long term. The discount rate used to discount liabilities was informed by the long-term projected portfolio return. In addition, demographic assumptions and the inflation rate assumption were changed in accordance with the 2021 CalPERS Experience Study and Review of Actuarial Assumptions. The accounting discount rate was 7.15% for measurement dates 2017 through 2021, 7.65% for measurement dates 2015 through 2016, and 7.50% for measurement date 2014. No changes in 2020 or 2021. In 2019, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017.
Benefit Changes:
The figures above generally include any liability impact that may have resulted from voluntary benefit changes that occured on or before the Measurement Date. However, offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes) after the Valuation Date are not included in the figures above, unless the liability impact is deemed to be material by the plan actuary. 1 Fiscal Year 2015 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
The notes to required supplementary information are an integral part of this schedule. 128
2019 2020 2021 2022 2023
6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022
12,044,725$ 12,267,031$ 12,575,630$ 13,253,770$ 14,319,314$ 34,751,830 36,853,969 38,422,153 39,881,546 41,558,338 (307,813) 4,868,911 (3,779,764) (6,175,468) (6,077,244) (2,112,530) - - - 23,527,391
(21,801,437) (22,950,693) (24,175,102) (25,325,483) (27,889,190) 22,574,775 31,039,218 23,042,917 21,634,365 45,438,609 493,338,275 515,913,050 546,952,268 569,995,185 591,629,550 515,913,050 546,952,268 569,995,185 591,629,550 637,068,159 13,529,290 15,445,861 17,861,917 183,166,596 10,002,548 3,804,814 3,966,723 4,257,612 4,884,978 5,197,226 29,258,121 24,248,349 19,386,578 - (2,001) (21,801,437) (22,950,693) (24,175,102) 104,361,444 (50,226,472) (539,438) (263,613) (549,592) (25,325,483) (27,889,190) (858) - - (406,200) (419,433)
(1,024,401) 858 - - -
23,226,091 20,447,485 16,781,413 266,681,335 (63,337,322) 346,176,034 369,402,125 389,849,610 406,631,023 673,312,358 369,402,125 389,849,610 406,631,023
673,312,358 609,975,036
146,510,925$ 157,102,658$ 163,364,162$ (81,682,808)$ 27,093,123$
71.60% 71.28% 71.34% 113.81% 95.75%
39,384,099$ 40,374,060$ 37,732,745$ 39,655,225$ 48,967,579$ 372.01% 389.12% 432.95% -205.98% 55.33%
The notes to required supplementary information are an integral part of this schedule. 129
CITY OF CHULA VISTA
SCHEDULES OF PLAN CONTRIBUTIONS
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS
1 Fiscal Year Actuarially Actual Contribution Contribution Ending Determined Employer Deficiency Covered as a % of June 30, Contribution Contribution (Excess) Payroll Covered Payroll 2015 9,637,382$ 9,637,382$ -$ 44,135,521$ 21.84%
2016 10,214,678 10,214,678 - 45,990,463 22.21%
2017 10,864,203 10,864,203 - 44,435,640 24.45%
2018 10,942,584 10,942,584 - 44,578,340 24.55%
2019 12,333,078 12,333,078 - 45,798,549 26.93%
2020 10,890,567 10,890,567 - 47,627,626 22.87%
2021 10,904,285 196,350,263 (185,445,978) 48,617,605 403.87% 2022 3,590,926 3,590,926 - 55,375,215 6.48%
2023 5,143,861 5,143,861 57,341,438 8.97%
Fiscal Year Actuarially Actual Contribution Contribution Ending Determined Employer Deficiency Covered as a % of June 30, Contribution Contribution (Excess) Payroll Covered Payroll 2015 12,553,815$ 12,553,815$ -$ 34,117,846$ 36.80%
2016 13,859,572 13,859,572 - 37,174,663 37.28%
2017 14,965,975 14,965,975 - 37,817,316 39.57%
2018 17,324,929 17,324,929 - 39,384,099 43.99%
2019 19,585,859 19,585,859 - 40,374,060 48.51%
2020 24,641,503 24,641,503 - 37,732,745 65.31%
2021 28,332,777 191,117,507 (162,784,730) 39,655,225 481.95% 2022 11,120,663 11,120,663 - 47,183,733 23.57%
2023 11,371,612 11,371,612 - 48,967,579 23.22%
CalPERS Miscellaneous Employees Agent, Multiple-Employer Pension Plan:
CalPERS Safety Employees Agent, Multiple-Employer Pension Plan:
1 Historical information is required only for measurement for which GASB 68 and GASB 75 is applicable. Fiscal year 2015 was the first year of implementation for GASB 68.
Future years' information will be displayed up to 10 years as information becomes available.
The notes to required supplementary information are an integral part of this schedule. 130
CITY OF CHULA VISTA
SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND
RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS 1 2018 2019 2020 2021 2022 2023
TOTAL OPEB LIABILITY
Service cost 825,786$ 819,100$ 921,271$ 1,468,936$ 1,647,777$ 1,255,377$ Interest on the total OPEB liability 495,822 549,699 516,371 636,356 533,534 1,031,876 Difference between expected and actual experience 4,128 - 5,786,481 - 2,804,304 - Change of assumptions 183,361 504,190 2,640,687 751,555 (3,029,111) (550,759) Implicit rate subsidy fulfilled (536,155) (634,315) (724,009) (1,148,517) (1,293,716) (1,482,784) Net change in total OPEB liability 972,942 1,238,674 9,140,801 1,708,330 662,788 253,710 Total OPEB Liability - Beginning 13,726,597 14,699,539 15,938,213 25,079,014 26,787,344 27,450,132 Total OPEB Liability - Ending 14,699,539$ 15,938,213 $ 25,079,014 $ 26,787,344 $ 27,450,132 $ 27,703,842 $ Plan fiduciary net position as a percentage of the total OPEB liability 2 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Covered-employee payroll 53,738,469$ 55,216,277$ 56,734,725$ 58,294,930$ 42,628,588$ 40,763,648$ Total OPEB liability as a percentage of covered-employee payroll 27.35% 28.87% 44.20% 45.95% 64.39% 67.96% Notes to Schedule of Changes in the Total OPEB Liability and Related Ratios:
2 The plan is not funded through a qualifying trust; therefore, there is no fiduciary net position to offset the total OPEB liability. 1 Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
The notes to required supplementary information are an integral part of this schedule. 131
CITY OF CHULA VISTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2023
1. Budgetary Information
An annual budget is adopted by the City Council prior to the first day of the fiscal year. The budget process includes submittal of each depa rtment's budget request for the next fiscal year, a deta iled review of each department's proposed budget by the City Manager, an d a final City Manager recommended budget transmitted to the City Council for its review before the required date of adoption. Once transmitted to the City Council, the proposed budget is made available for public inspection. A public hearing is held to give the public the opportunity to comment upon the proposed budget. Notice of such public hearing is published in a newspaper of genera l circulation.
The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of budgetary control is at the department and expenditure category level. Council approval is required for any transfer between departments or overall increase to a department. The City Manager is authorized to transfer appropriations up to $75,000 between expenditure categories within a departmental budget. Any appropriation transfers betw een expenditure categories within departments greater than $75,000 require City Council approval.
Appropriations, other than for capital projects, remaining unspent at the end of any fiscal year will be canceled and returned to Available Fund Balance with the exception of any appropriations encumbered as the result of a valid purchase order or as approved for a specific project or purpose by the City Council or the City Manager.
Appropriations for capital projects will necessarily be carri ed over from year to year until the project is deemed to be complete.
Reported budget figures are as originally adopted or subsequently amended plus prior year continui ng appropriations. Such budget amendments during the year, including those related to supplemental appropriations, did not cause these reported budget amounts to be significantly different than the originally adopted budget amounts. All appropriations which are not obligated, encumbered, or expended at the end of the fiscal year lapse and become a part of the unassigned fund balance which may be appropriated for the next fiscal year.
An annual budget for the year ended June 30, 2023, was adopted and approved by the City Council for the general, special revenue, capital project and debt service funds. These budgets are prepared on the modified accrual basis of accounting, excluding the effects of GASB 31, GASB 87, and GASB 96. 132
CITY OF CHULA VISTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2023
2. Reconciliation of Net Change in Fund Balance for the General Fund prepared on a GAAP basis to that prepared on the budgetary basis for the year ended June 30, 2023
3. Reconciliation of Net Change in Fund Balance for the Federal, State, And Local Grant Fund prepared on a GAAP basis to that prepared on the budgetary basis for the year ended June 30, 2023
4. Reconciliation of Net Change in Fund Balance for the Housing Successor Agency Fund prepared on a GAAP basis to that prepared on the budgetary basis for the year ended June 30, 2023 Ge n e ra l
Fund
Net Change in Fund Balance - G AAP Basis $ 9,304,443 Add (Deduct):
GASB 31 Fair Market Value 1,612,140
Encumbrances (13,485,675)
Flex ible Spending Account (131,472)
Special Item - Successor Agency 2,765,896
Net Change in Fund Balance - Budgetary Basis $ 65,332 Housing
Successor
Agency
Net Change in Fund Balance - GAAP Basis $ 521,723
Add (Deduct):
GASB 31 Fair Market Value 78,759
Encumbrances (1,429)
Net Change in Fund Balance - Budgetary Basis $ 599,053 Federal, State, and
Local Grants
Net Change in Fund Balance - GAAP Basis $ 16, 211,491 Add (Deduct):
GASB 31 Fair Market Value 329,441
Encumbrances (31,818,763)
Net Change in Fund Balance - Budgetary Basis $ (15,277,831) 133
CITY OF CHULA VISTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2023
5. ACTUARIAL ASSUMPTIONS UNDERLYING THE SCHEDULE OF PLAN CONTRIBUTIONS FOR
MISCELLANEOUS AND SAFETY PENSION PLANS
The actuarial methods and assumptions used to set the actuarially determined contributions for fiscal year ended June 30, 2023 were derived from the June 30, 2020 funding valuation report.
Actuarial Cost Method: Entry Age Norm al
Am ortization Method/Period: For details, see the June 30, 2020 funding valuation report, available at CalPERS' website
Asset V aluation Method: Market V alue of Assets
Inflation: 2.50 percent
Salay Increases: V aries by Entry Age and Service
Payroll G rowth: 2.75 percent
Investm ent Rate of Return: 7.00 percent, net of investm ent and adm inistrative ex penses Retirem ent Age: The probabilities of retirem ent are based on the 2017 CalPERS Ex perience Study for the period of 1997 to 2015.
Mortality: The probabilities of m ortality are based on the 2017 CalPERS Experience Study for the period of 1997 to 2015.
Pre-retirem ent and post-retirem ent m ortality rates include 15 years of projected m ortality im provem ent using 90.00 percent of Scale MP-2016 published by the Society of Actuaries.
134
SUPPLEMENTARY INFORMATION
135
136
CITY OF
CHULA VISTA
NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Transportation Gas Taxes - This fund accounts for revenues and expenditures received from the State of
California under the Street and Safety Code Sections 2103, 2105, 2106, 2107, 2107.5 and the Road Repair and Accountability Act of 2017 (Senate Bill 1). The allo cations must be spent for street maintenance or construction and a limited amount for engineering.
Parking Meter - This fund accounts for revenues and expenditu res from the operation of parking meters located in the downtown area and parking citation pa yments for expired meter violations within the parking district. The funds pay for the collection and maintenance of parking meters, parking enforcement staff that monitor the downtown area, general upkeep and signage of the downtown parking lots.
Traffic Safety - This fund is a depository for monies derived from vehicle code fines (excluding parking violations). The fines are collected through the Coun ty court system and remitte d to the City monthly.
These monies may be expended only for traffic control equipment and maintenance thereof or for the maintenance, improvement or construction of public streets.
Storm Drain - This fund is a depository for monies collected from the monthly storm drain service charge.
Monies in this fund may be used for storm drain purposes.
Town Center I - This fund accounts for revenues from an in-lieu parking fee. The in-lieu parking fee applies to any developer of a new commercial build ing or addition to an existing commercial building within the Downtown Parking district. Monies in this fund are restricted for the purchase or development of parking sites.
Open Space Districts - This fund is a depository for monies received for all flat rate property tax assessments levied against benefiting property owners for the maintenance of open space areas.
Housing Programs - This fund is a depository for federal hous ing rehabilitation monies held in trust by Bank of America for the issuance of housing rehabilitation loans to qualified low- and moderate-income recipients.
Housing Authority - This fund accounts for all housing related activity which is reimbursed from various Local, State and Federal funding sources. The Ho using Authority focuses on the development of sustainable neighborhoods through investments in and administration of programs that seek to improve, preserve and increase the supply of affordable housing in the City and serve low-income residents.
Transportation Sales Tax - This fund accounts for the City’s share of the San Diego countywide one-half cent transportation sales tax (TransNet) to be used for local street and road improvements.
Mobile Park Fee - This fund accounts for the Mobile Home Park Space Rent Review Administrative Fee to reimburse the City for labor and other costs associated with administering the review. 137
137
NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (Continued):
Public Education and Government (PEG) Fee - This fund
accounts for the 1% of gross revenues assessed
on all video service providers that use the public ri ghts-of-way, including all local franchisees and all holders of state franchises as consistent with state or Federal law. PEG Fees collected are used to provide public, educational, or governmental programming.
Utility Tax Settlement - This fund accounts for funds in accordance with a 2014 settlement agreement that resolved a class action lawsuit challenging the City’s collection of Telephone Users’ Taxes from wireless customers.
National Opioid Settlement - This fund is utilized for the National Opioid Settlement against manufacturers, distributors and other entities responsible for aiding the opioid epidemic. Funds are to be utilized for opioid abatement activities. Payments are expected to be received through 2038.
Special Revenue Endowments - This fund accounts for the donation of money and property meant to be used for operations or programs that are consistent with the wishes of the donor(s).
Developer Contributions - This fund accounts for contributions from developers used to fund the construction of City facilities.
Donations - This fund accounts for monies received from a donor(s) for various programming.
CAPITAL PROJECTS FUNDS:
Park Acquisition Development - This fund is a depo
sitory for fees collected from subdividers for the
purpose of providing park and recreational facilities di rectly benefiting and serving the residents of the regulated subdivisions east and west of the California Interstate Highway 805.
Residential Construction Tax - This fund is a depository for fees levied for the construction, replacement, or conversion of all dwelling units within the City including hotels and motels.
Highway Safety - This fund is a depository for revenues received from State of California per Proposition 1B. Funds must be spent for transportation projects to relieve congestion, improve the movement of goods, improve air quality and security of the transportation system.
Bicycle Facility - This fund is a depository for local Transportation Development Act funds (TDA), Article
3.0, received from the San Diego County for bicycle related programs.
Industrial Development Authority - The Industrial Development Authority (IDA) is a conduit-issuer of bonds, formed in February 1982 (Ordinance 1970) by the City of Chula Vista City Council. The IDA enables bonds to be issued with a tax-exempt status but does not pledge City funds to repay the bond issues.
The City can issue and sell bonds to provide financial assistance that has a public benefit for the acquisition, construction, and installation of facilities for industrial, commercial, business, or public utility purposes.
Assessment District Improvement - This fund is a depository for monies received from issuance of bonds 138
138
for various assessment districts. The monies are used to finance the construction of public works improvements in the related districts.
Transportation Partnership - This fund is a depository for revenues received from the State of California and Local Transportation Partnership Program. Funds must be spent for street purposes.
Other Transportation Program - This fund is a depository for revenues received from the Federal Highway Safety Improvement Program. Funds must be spent for street, public highway bridges and other regional surface transportation programs.
Capital Projects Fund - This fund accounts for general purpose capital projects funded primarily from General Fund. Funds are utilized to account for res ources used for the acquisition and construction of capital facilities by the City.
DEBT SERVICE FUNDS:
Public Financing Authority Debt Service Fund – This fund is used t o account for financing the acquisition
of bonds, notes and other obligations of, or for the purpose of making loans to the City and / or to refinance outstanding obligations of the City.
Municipal Financing Authority Debt Service Fund – This fund is used to account for the financing or refinancing activities for the acquisition, construction, and improvement of public capital improvements.
City Debt Service - This fund accounts for the activities of the City’s bonds, notes, and financed purchases.
Notes Payable - This fund accounts for principal and interest payments on various notes payable.
Lease Payable - This fund accounts for the City's portion of the infrastructure and financing costs of the San Diego County regional communications systems (RCS) and lease purchase of the City Fire Department's medical resuscitation equipment.
139
140
CITY OF
CHULA VISTA
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Transportation
Gas Taxes Parking Meter Traffic Safety Storm Drain Town Center I ASSETS
Cash and investments 19,971,474$ 1,432,426$ -$ 2,602,706$ 245,588$ Receivables:
Accounts (net of allowance for uncollectibles) - 23,605 25,928 137,114 - Taxes 1,699,432 - - - -
Accrued interest 116,341 8,204 1,112 14,281 1,339
Deferred loans (net of allowance for uncollectibles) - - - - - Due from other governments - - - - -
Prepaid costs - - - - -
Restricted assets:
Cash and investments with fiscal agents - - - - -
Total Assets 21,787,247$ 1,464,235$ 27,040$ 2,754,101$ 246,927$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable 1,932,636$ 100,796$ 17,038$ 27,835$ -$ Retentions payable 325,711 - - - -
Accrued liabilities 10,364 - - - -
Deposits payable - - - - -
Due to other funds - - 14,736 - -
Unearned revenues - - - - -
Total Liabilities 2,268,711$ 100,796$ 31,774$ 27,835$ -$ Deferred Inflows of Resources:
Unavailable revenues - - - 2,226 -
Total Deferred Inflows of Resources - - - 2,226 -
Fund Balances:
Nonspendable -----
Restricted 19,518,536 1,363,439 - 2,724,040 246,927 Unassigned (Deficit) - - (4,734) - -
Total Fund Balances (Deficit) 19,518,536 1,363,439 (4,734) 2,724,040 246,927 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances 21,787,247$ 246,927$ 2,754,101$ 27,040$ 1,464,235$ Special Revenue Funds
141
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Due from other governments
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Open Space Housing Housing Transportation
Districts Programs Authority Sales Tax Mobile Park Fee
52,248,955$ 67,588$ 5,585,102$ 139,241$ 249,901$ 81,539 - 63,360 - 12
- - - - -
289,066 - 30,395 617 -
- 513,668 3,887,857 - -
- 133,831 - 182,099 -
6,120 - - - -
- - - - -
52,625,680$ 715,087$ 9,566,714$ 321,957$ 249,913$ 1,329,708$ 25,471$ 19,349$ 746,027$ 83$ 171,428 - - 27,639 -
- - 37,758 - -
- - - - -
- - - - -
- - - - 15,740
1,501,136.0$ 25,471.0$ 57,107.0$ 773,666.0$ 15,823.0$ - 575,486 3,922,457 182,099 12
- 575,486 3,922,457 182,099 12
6,120 ----
51,118,424 114,130 5,587,150 - 234,078 - - - (633,808) -
51,124,544 114,130 5,587,150 (633,808) 234,078 249,913$ 9,566,714$ 715,087$ 52,625,680$ 321,957$ Special Revenue Funds
142
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL
FUNDS JUNE 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Due from other governments
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Public Education Utility Tax National Opioid Special Revenue Developer and Govt Fee Settlement Settlement Endowments Contributions Donations 556,910$ 102,425$ 309,584$ 1,422,124$ 5,258,592$ 623,355$ - - - - - -
99,425 - - - - -
- 558 1,663 7,789 28,983 3,406
- - - - - -
485,140 - - - - -
- - - - - -
- - - - - -
1,141,475$ 102,983$ 311,247$ 1,429,913$ 5,287,575$ 626,761$ 35,623$ -$ -$ 18,535$ 1,003$ -$
- - - 7,333 - -
- - - - - -
- - - 1,404,045 - -
- - - - - -
- - 230,086 - - -
35,623$ -$ 230,086$ 1,429,913$ 1,003$ -$ 485,140 - - - - -
485,140 - - - - -
------
620,712 102,983 81,161 - 5,286,572 626,761
------
620,712 102,983 81,161 - 5,286,572 626,761
5,287,575$ 1,429,913$ 311,247$ 102,983$ 1,141,475$ 626,761$ Special Revenue Funds
143
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL
FUNDS JUNE 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Due from other governments
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Industrial
Park Acquisition Residential Development
Development Construction Tax Highway Safety Bicycle Facility Authority 44,565,428$ -$ 971$ -$ 56$
60,073 - - - -
- - - - -
242,958 - 5 - -
2,893,289 - - - -
- - - - -
- - - - -
- - - - -
47,761,748$ -$ 976$ -$ 56$
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- 1,310,131 - 4,460 -
- - - - -
- 1,310,131 - 4,460 -
3,503,520 - - - -
3,503,520 - - - -
-----
44,258,228 - 976 - 56
- (1,310,131) - (4,460) -
44,258,228 (1,310,131) 976 (4,460) 56 56$ 47,761,748$ -$ 976$ -$
Capital Project Funds
144
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL
FUNDS JUNE 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Due from other governments
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Assessment Other
District Transportation Transportation Capital Projects Improvement Partnership Program Fund
1,110,106$ 108$ -$ 6,482,047$
- - - -
- - - -
6,049 - - 35,924
- - - -
- - 240,453 450,000
- - - -
- - - 695,403
1,116,155$ 108$ 240,453$ 7,663,374$ -$ -$ 22,418$ 1,723,046$
- - 11,418 187,341
- - - -
- - - -
- - 537,697 -
- - - -
- - 571,533 1,910,387
- - 144,841 450,000
- - 144,841 450,000
----
1,116,155 108 - 5,302,987
- - (475,921) -
1,116,155 108 (475,921) 5,302,987 1,116,155$ 108$ 240,453$ 7,663,374$ Capital Project Funds
145
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL
FUNDS JUNE 30, 2023
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Due from other governments
Prepaid costs
Restricted assets:
Cash and investments with fiscal agents
Total Assets
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable
Retentions payable
Accrued liabilities
Deposits payable
Due to other funds
Unearned revenues
Total Liabilities
Deferred Inflows of Resources:
Unavailable revenues
Total Deferred Inflows of Resources
Fund Balances:
Nonspendable
Restricted
Unassigned (Deficit)
Total Fund Balances (Deficit)
Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
(CONTINUED)
Debt Service Funds
Public Municipal Total
Financing Financing City Debt Governmental
Authority Authority Service Notes Payable Lease Payable Funds -$ 4,610$ 640$ 40,127$ -$ 143,020,064$
- - - - - 391,631
- - - - - 1,798,857
78,897 2 - - - 867,589
- - - - - 7,294,814
- - - - - 1,491,523
- - 452,246 - - 458,366
5,132,494 3,384 1,996 - - 5,833,277
5,211,391$ 7,996$ 454,882$ 40,127$ -$ 161,156,121$ -$ 4,598$ -$ -$ -$ 6,004,166$
- - - - - 730,870
- - - - - 48,122
- - - - - 1,404,045
- - - - - 1,867,024
- - - - - 245,826
- 4,598 - - - 10,300,053
- - - - - 9,265,781
- - - - - 9,265,781
- - 452,246 - - 458,366
5,211,391 3,398 2,636 40,127 - 143,560,975 - ---- ( 2,429,054)
5,211,391 3,398 454,882 40,127 - 141,590,287 161,156,121$ 454,882$ 7,996$ 40,127$ -$ 5,211,391$ 146
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND
BALANCES NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Special Revenue Funds
Transportation
Gas Taxes Parking Meter Traffic Safety Storm Drain Town Center I Revenues:
Taxes -$ -$ -$ -$ -$
License and permits - 42,100 - - -
Intergovernmental 13,199,799 - - - -
Charges for service 1,602 - - 620,342 10,500
Use of money and property (investment losses) 209,139 436,325 2,271 23,946 2,312 Fines and forfeitures - 231,033 282,454 400 -
Developer participation - - - - -
Miscellaneous - - - - -
Total Revenues (net losses) 13,410,540 709,458 284,725 644,688 12,812 Expenditures:
Current:
General government - 652,601 - - -
Public safety - - 48,872 - -
Community development - - - - 30
Public works 244,798 - - 236,160 -
Parks and recreation - - - - -
Capital outlay 7,748,475 15,403 2,175 - - Debt service:
Principal retirement - - - - -
Interest and fiscal charges - - - - -
Total Expenditures 7,993,273 668,004 51,047 236,160 30 Excess (Deficiency) Revenues over Expenditures 5,417,267 41,454 233,678 408,528 12,782 Other Financing Sources (Uses):
Transfers in 2,000 - - - -
Transfers out (4,582,973) (655) (236,374) (27,685) - Issuance of debt - - - - -
Total Other Financing Sources (Uses) (4,580,973) (655) (236,374) (27,685) - Net Change in Fund Balance 836,294 40,799 (2,696) 380,843 12,782 Fund Balances - Beginning 18,682,242 1,322,640 (2,038) 2,343,197 234,145 Restatements - - - - -
Fund Balances - Beginning as Restated 18,682,242 1,322,640 (2,038) 2,343,197 234,145 Fund Balances (Deficit) - Ending 19,518,536$ 1,363,439$ (4,734)$ 2,724,040$ 246,927$ 147
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property (investment losses)
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues (net losses)
Expenditures:
Current:
General government
Public safety
Community development
Public works
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Issuance of debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Restatements
Fund Balances - Beginning as Restated
Fund Balances (Deficit) - Ending
(CONTINUED)
Special Revenue Funds
Open Space Housing Housing Transportation
Districts Programs Authority Sales Tax Mobile Park Fee
-$ -$ -$ -$ -$
- - - - -
- 92,019 - 2,897,705 -
19,937,364 - 392,412 - 24,076
482,822 - 145,650 2,161 -
- - - - -
- - 4,890 - -
66 - 765,296 - -
20,420,252 92,019 1,308,248 2,899,866 24,076 - - - - -
- - - - -
- 133,831 1,251,581 - 38,898
13,972,838 - - - -
- - - - -
- - - 3,035,950 -
- - - - -
- - - - -
13,972,838 133,831 1,251,581 3,035,950 38,898 6,447,414 (41,812) 56,667 (136,084) (14,822) 272,641 - 6,000 - -
(12,763) - (368,819) - -
- - - - -
259,878 - (362,819) - -
6,707,292 (41,812) (306,152) (136,084) (14,822) 44,417,252 155,942 5,893,302 (497,724) 248,900 - - - - -
44,417,252 155,942 5,893,302 (497,724) 248,900 51,124,544$ 114,130$ 5,587,150$ (633,808)$ 234,078$ 148
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND
BALANCES NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property (investment losses)
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues (net losses)
Expenditures:
Current:
General government
Public safety
Community development
Public works
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Issuance of debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Restatements
Fund Balances - Beginning as Restated
Fund Balances (Deficit) - Ending
(CONTINUED)
Special Revenue Funds
Public Education Utility Tax National Opioid Special Revenue Developer and Govt Fee Settlement Settlement Endowments Contributions Donations -$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- 1,469 (6,961) - (118,336) (7,739)
- - - - - -
- - - - 4,184,260 -
416,801 - 88,159 - - 128,098
416,801 1,469 81,198 - 4,065,924 120,359 587,978 12 37 - 15 71,176
- - - - - 16,106
- - - - 183,139 53,527
- - - - - -
- - - - - 8
139,531 - - - 52,634 -
- - - - - -
- - - - - -
727,509 12 37 - 235,788 140,817
(310,708) 1,457 81,161 - 3,830,136 (20,458) - - - - - -
- - - - - -
- - - - - -
- - - - - -
(310,708) 1,457 81,161 - 3,830,136 (20,458) 931,420 101,526 - - 1,297,964 160,934
- - - - 158,472 486,285
931,420 101,526 - - 1,456,436 647,219
620,712$ 102,983$ 81,161$ -$ 5,286,572$ 626,761$ 149
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property (investment losses)
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues (net losses)
Expenditures:
Current:
General government
Public safety
Community development
Public works
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Issuance of debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Restatements
Fund Balances - Beginning as Restated
Fund Balances (Deficit) - Ending
(CONTINUED)
Capital Project Funds
Industrial
Park Acquisition Residential Development
Development Construction Tax Highway Safety Bicycle Facility Authority -$ 166,875$ -$ -$ -$
- - - - -
- - - - -
- - - - -
619,583 (18,399) 13 - 2
- - - - -
658,724 - - - -
- - - - -
1,278,307 148,476 13 - 2
- - - - -
- - - - -
5,390 - - - -
- - - - -
- - - - -
- - - - -
- - - - -
190,377 - - - -
195,767 - - - -
1,082,540 148,476 13 - 2
- - - - -
(16,945) (632,071) - - -
- - - - -
(16,945) (632,071) - - -
1,065,595 (483,595) 13 - 2
43,192,633 (826,536) 963 (4,460) 54 - - - - -
43,192,633 (826,536) 963 (4,460) 54 44,258,228$ (1,310,131)$ 976$ (4,460)$ 56$ 150
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND
BALANCES NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property (investment losses)
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues (net losses)
Expenditures:
Current:
General government
Public safety
Community development
Public works
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Issuance of debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Restatements
Fund Balances - Beginning as Restated
Fund Balances (Deficit) - Ending
(CONTINUED)
Capital Project Funds
Assessment Other
District Transportation Transportation Capital Projects Improvement Partnership Program Fund
-$ -$ -$ -$
- - - -
- - 704,244 -
- - - -
15,927 4 - 117,157
- - - -
- - - -
- - - 49,083
15,927 4 704,244 166,240
134 - - -
- - - -
- - - -
- - - 508,967
- - - -
- - 533,657 8,402,109
- - - -
- - - -
134 - 533,657 8,911,076
15,793 4 170,587 (8,744,836)
- - - 8,739,618
- - - (24,343)
- - - -
- - - 8,715,275
15,793 4 170,587 (29,561)
1,100,362 104 (646,508) 5,332,548 - - - -
1,100,362 104 (646,508) 5,332,548 1,116,155$ 108$ (475,921)$ 5,302,987$ 151
151
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND
BALANCES NON-MAJOR GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property (investment losses)
Fines and forfeitures
Developer participation
Miscellaneous
Total Revenues (net losses)
Expenditures:
Current:
General government
Public safety
Community development
Public works
Parks and recreation
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (Deficiency) Revenues over Expenditures
Other Financing Sources (Uses):
Transfers in
Transfers out
Issuance of debt
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Restatements
Fund Balances - Beginning as Restated
Fund Balances (Deficit) - Ending
(CONTINUED)
Debt Service Funds
Public Municipal Total
Financing Financing City Debt Governmental
Authority Authority Service Notes Payable Lease Payable F unds -$ -$ -$ -$ -$ 166,875$
- - - - - 42,100
- - - - - 16,893,767
- - - - - 20,986,296
(331,521) 20,184 2,024 - 2,687 1,600,720 - - - - - 513,887
- - - - - 4,847,874
- 246,113 - - 12,818 1,706,434
(331,521) 266,297 2,024 - 15,505 46,757,953 12,000 16,599 3,665 - - 1,344,217
- - - - - 64,978
- - - - - 1,666,396
- - - - - 14,962,763
- - - - - 8
- - - - - 19,929,934
4,250,000 7,860,000 8,057,426 786,898 274,187 21,228,511 2,557,393 2,776,920 7,055,771 173,435 22,228 12,776,124 6,819,393 10,653,519 15,116,862 960,333 296,415 71,972,931 (7,150,914) (10,387,222) (15,114,838) (960,333) (280,910) (25,214,978) 6,478,565 10,391,886 15,095,588 960,333 283,760 42,230,391 - - - - (100,664) (6,003,292)
- - - - - -
6,478,565 10,391,886 15,095,588 960,333 183,096 36,227,099 (672,349) 4,664 (19,250) - (97,814) 11,012,121 5,883,740 (1,266) 474,132 40,127 97,814 129,933,409 - - - - - 644,757
5,883,740 (1,266) 474,132 40,127 97,814 130,578,166 5,211,391$ 3,398$ 454,882$ 40,127$ -$ 141,590,287$ 152
152
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Current:
City council
Personnel Services 1,500,420$ 1,241,056$ 259,364$ Supplies and Services 254,867 44,720 210,147 Utilities 1,339 687 652
Total City council 1,756,626 1,286,463 470,163 City clerk
Personnel Services 965,967 965,967 - Supplies and Services 591,467 413,518 177,949 Utilities 461 328 133
Other Expenses 13,500 13,456 44
Total City clerk 1,571,395 1,393,269 178,126 City attorney
Personnel Services 2,449,149 2,272,220 176,929 Supplies and Services 847,435 516,897 330,538 Utilities 1,086 766 320
Total City attorney 3,297,670 2,789,883 507,787 Administration
Personnel Services 2,316,424 2,086,877 229,547 Supplies and Services 337,668 257,005 80,663 Utilities 675 559 116
Other Expenses 38,071 38,071 -
Total Administration 2,692,838 2,382,512 310,326 Information technology
Personnel Services 2,636,124 2,450,856 185,268 Supplies and Services 2,387,464 1,909,186 478,278 Utilities 4,198 1,462 2,736
Internal Service 72 72 -
Total Information technology 5,027,858 4,361,576 666,282 Human resources
Personnel Services 2,891,564 2,891,564 - Supplies and Services 534,671 528,425 6,246 Utilities 1,871 1,524 347
Total Human resources 3,428,106 3,421,513 6,593 Finance
Personnel Services 3,980,908 3,930,056 50,852 Supplies and Services 2,701,600 1,780,411 921,189 Utilities 1,789 1,432 357
Other Expenses 7,078,620 5,358,155 1,720,465 Total Finance 13,762,917 11,070,054 2,692,863 Non-departmental
Personnel Services 436,880 345,933 90,947 Supplies and Services 6,136,995 5,555,327 581,668 Utilities 30,036 30,036 -
Other Expenses 4,198,042 3,547,595 650,447 Total Non-departmental 10,801,953 9,478,891 1,323,062 Board and commissions
Supplies and Services 35,977 7,950 28,027
Total Board and commissions 35,977 7,950 28,027
Police
Personnel Services 57,902,083 57,826,301 75,782 Supplies and Services 4,169,391 3,853,771 315,620 Utilities 844,196 820,816 23,380 Other Expenses 624,533 624,533 - Internal Service 1,420,808 1,171,353 249,455 Total Police 64,961,011 64,296,774 664,237 153
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Fire
Personnel Services 38,003,270 36,936,294 1,066,976 Supplies and Services 2,953,957 2,522,712 431,245 Utilities 346,597 346,597 - Other Expenses 529,843 529,843 - Internal Service 1,607,114 1,543,266 63,848 Total Fire 43,440,781 41,878,712 1,562,069 Animal care facilities
Personnel Services 2,720,835 2,618,560 102,275 Supplies and Services 398,966 389,281 9,685 Utilities 82,520 77,639 4,881
Other Expenses 4,812 4,812 -
Internal Service 71,191 41,825 29,366
Total Animal care facilities 3,278,324 3,132,117 146,207 Economic development
Personnel Services 1,176,655 1,129,465 47,190 Supplies and Services 531,487 531,487 - Utilities 1,776 1,644 132
Other Expenses 2,728,056 281,538 2,446,518 Total Economic development 4,437,974 1,944,134 2,493,840 Development services
Personnel Services 2,430,620 2,166,823 263,797 Supplies and Services 221,039 221,039 - Utilities 2,586 2,586 -
Other Expenses 3,437,935 3,426,108 11,827 Internal Service 31,981 15,107 16,874
Total Development services 6,124,161 5,831,663 292,498 Parks and recreation
Personnel Services 3,438,072 3,438,072 - Supplies and Services 917,756 917,733 23 Utilities 332,366 332,366 - Other Ex
penses 166,987 166,987 -
Internal Service 15,971 15,970 1
Total Parks and recreation 4,871,152 4,871,128 24 Public works
Personnel Services 12,529,227 12,529,227 - Supplies and Services 4,404,316 3,938,963 465,353 Utilities 3,780,890 3,362,504 418,386 Other Expenses 147,645 121,188 26,457 Internal Service 1,037,219 938,595 98,624 Total Public works 21,899,297 20,890,477 1,008,820 Engineering
Personnel Services 7,133,641 7,112,645 20,996 Supplies and Services 1,108,880 915,582 193,298 Utilities 1,346,391 1,330,925 15,466 Other Expenses 109,347 72,851 36,496
Internal Service 250,599 207,222 43,377 Total Engineering 9,948,858 9,639,225 309,633 Library
Personnel Services 2,673,575 2,673,555 20 Supplies and Services 288,916 266,672 22,244 Utilities 357,561 312,941 44,620 Other Expenses 400,244 190,282 209,962 Internal Service 4,508 2,730 1,778
Total Library 3,724,804 3,446,180 278,624 Debt service
Principal retirement 1,175,228 1,165,140 10,088 Interest and fiscal charges 120,271 110,183 10,088 Total Debt Service 1,295,499 1,275,323 20,176 Capital outlay 61,161,993 34,943,829 26,218,164 Transfers out 49,413,093 36,259,182 13,153,911 Total Expenditures 316,932,287 $ 264,600,855 $ 52,331,432 $ (CONTINUED)
154
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
FEDERAL, STATE, AND LOCAL GRANTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Current:
Finance
Personnel Services 1,541,000$ 1,541,000$ -$ Other Expenses 4,122,321 1,870,467 2,251,854 Total Finance 5,663,321 3,411,467 2,251,854 Police
Personnel Services 6,948,083 6,112,272 835,811 Supplies and Services 2,644,204 1,794,242 849,962 Other Expenses 526,459 408,898 117,561 Total Police 10,118,746 8,315,412 1,803,334 Fire
Personnel Services 499,842 176,245 323,597 Supplies and Services 292,318 167,093 125,225 Other Expenses 75,474 75,474 -
Total Fire 867,634 418,812 448,822 Animal care facilities
Supplies and Services 41,172 35,627 5,545
Other Expenses 87,200 25,319 61,881
Total Animal care facilities 128,372 60,946 67,426 Economic development
Personnel Services 908,958 754,998 153,960 Supplies and Services 2,216,092 1,267,114 948,978 Utilities 35,840 - 35,840
Other Expenses 3,321,946 2,718,277 603,669 Internal Service 13,841 13,841 -
Total Economic development 6,496,677 4,754,230 1,742,447 Development services
Supplies and Services 4,692,745 6,005 4,686,740 Utilities 4,653 - 4,653
Other Expenses 22,274,845 9,846,335 12,428,510 Total Development services 26,972,243 9,852,340 17,119,903 Public works
Other Expenses 3,169,607 3,169,593 14 Total Public works 3,169,607 3,169,593 14 Library
Personnel Services 57,377 57,377 -
Supplies and Services 12,190 12,190 -
Other Expenses 4,000 3,253 747
Total Library 73,567 72,820 747
Capital outlay 71,693,117 37,169,818 34,523,299 Transfers out 26,522,692 3,595,097 22,927,595 Total Expenditures 151,705,976$ 70,820,535$ 80,885,441$ 155
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
HOUSING SUCCESSOR AGENCY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Current:
Development services
Supplies and Services 59,720 $ 1,852 $ 57,868$ Other Expenses 2,014,500 4,314 2,010,186
Total Development services 2,074,220 6,166 2,068,054 Transfers out 9,858 5,262 4,596
Total Expenditures 2,084,078$ 11,428$ 2,072,650$ 156
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TRANSPORTATION GAS TAXES
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 14,261,679 $ 13,199,799 $ (1,061,880) $ Charges for service - 1,602 1,602
Use of money and property (investment loss) - 441,498 441,498 Total Revenues 14,261,679 13,642,899 (618,780) Expenditures:
Current:
Public works 271,043 244,800 26,243 Capital outlay 26,452,753 9,560,761 16,891,992 Total Expenditures 26,723,796 9,805,561 16,918,235 Excess (Deficiency) Revenues over Expenditures (12,462,117) 3,837,338 (17,537,015) Other Financing Sources (Uses):
Transfers in 2,000 2,000 -
Transfers out (4,594,140) (4,582,973) 11,167 Total Other Financing Sources (Uses) (4,592,140) (4,580,973) 11,167 Net Change in Fund Balanc
e (17,054,257)$ (743,635) (17,525,848)$ Fund Balances - Beginning 18,682,242
Fund Balances - Ending 17,938,607$
157
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
PARKING METER
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Licenses and permits 25,000 $ 42,100 $ 17,100 $ Use of money and property (investment loss) 365,000 445,423 80,423 Fines and forfeitures 230,162 231,033 871 Total Revenues 620,162 718,556 98,394 Expenditures:
Current:
General government 730,868 730,869 (1) Capital outlay 40,307 17,879 22,428
Debt service: -
Total Expenditures 771,175 748,748 22,427 Excess (Deficiency) Revenues over Expenditures (151,013) (30,192) 120,821 Other Financing Sources (Uses):
Transfers out (1,227) (655) 572
Total Other Financing Sources (Uses) (1,227) (655) 572 Net Change in Fund Balanc
e (152,240)$ (30,847) 121,393$
Fund Balances - Beginning 1,322,640
Fund Balances - Ending 1,291,793$
158
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TRAFFIC SAFETY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) - $ 1,693$ 1,693$ Fines and forfeitures 437,640 282,454 (155,186) Other revenues - - -
Total Revenues 437,640 284,147 (153,493) Expenditures:
Current:
Public safety 57,773 48,872 8,901
Capital outlay 2,175 2,175 -
Total Expenditures 59,948 51,047 8,901
Excess (Deficiency) Revenues over Expenditures 377,692 233,100 (144,592) Other Financing Sources (Uses):
Transfers out (399,140) (236,374) 162,766 Total Other Financing Sources (Uses) (399,140) (236,374) 162,766 Net Change in Fund Balanc
e (21,448)$ (3,274) 18,174$
Fund Balances - Beginning (2,038)
Fund Balances - Ending (5,312)$
159
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
STORM DRAIN
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 585,000 $ 620,342 $ 35,342 $ Use of money and property (investment loss) - 50,699 50,699 Fines and forfeitures 5,000 400 (4,600)
Total Revenues 590,000 671,441 81,441 Expenditures:
Current:
Public works 500,397 399,334 101,063 Total Expenditures 500,397 399,334 101,063 Excess (Deficiency) Revenues over Expenditures 89,603 272,107 182,504 Other Financing Sources (Uses):
Transfers out (128,284) (27,685) 100,599
Total Other Financing Sources (Uses) (128,284) (27,685) 100,599 Net Change in Fund Balanc
e (38,681)$ 244,422 283,103 $ Fund Balances - Beginning 2,343,197
Fund Balances - Ending 2,587,619$
160
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TOWN CENTER I
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service - $ 10,500$ 10,500$ Use of money and property (investment loss) 30 5,028 4,998 Total Revenues 30 15,528 15,498
Expenditures:
Current:
Community development 30 30 0
Capital outlay 10,120 - 10,120
Total Expenditures 10,150 30 10,120
Net Change in Fund Balanc
e (10,120)$ 15,498 25,618$
Fund Balances - Beginning 234,145
Fund Balances - Ending 249,643$
161
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OPEN SPACE DISTRICTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 19,046,901 $ 19,937,364 $ 890,463 $ Use of money and property (investment loss) - 961,921 961,921 Other revenues - 66 66
Total Revenues 19,046,901 20,899,351 1,852,450 Expenditures:
Current:
Public works 19,336,977 14,261,680 5,075,297 Capital outlay 65,022 64,705 317
Total Expenditures 19,401,999 14,326,385 5,075,614 Excess (Deficiency) Revenues over Expenditures (355,098) 6,572,966 6,928,064 Other Financing Sources (Uses):
Transfers in 272,661 272,641 (20) Transfers out (256,273) (12,763) 243,510
Total Other Financing Sources (Uses) 16,388 259,878 243,490 Net Change in Fund Balanc
e (338,710)$ 6,832,844 7,171,554$ Fund Balances - Beginning 44,417,252
Fund Balances - Ending 51,250,096$
162
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HOUSING PROGRAMS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 100,000 $ 92,019 $ (7,981) $ Total Revenues 100,000 92,019 (7,981)
Expenditures:
Current:
Community development 1,009,290 136,956 872,334 Total Expenditures 1,009,290 136,956 872,334 Excess (Deficiency) Revenues over Expenditures (909,290) (44,937) 864,353 Net Change in Fund Balanc
e (909,290)$ (44,937) 864,353$
Fund Balances - Beginning 155,942
Fund Balances - Ending 111,005$
163
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HOUSING AUTHORITY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation - $ 4,890$ 4,890$
Charges for service 864,809 392,412 (472,397) Use of money and property (investment loss) - 163,739 163,739 Other revenues 170,000 765,296 595,296
Total Revenues 1,034,809 1,326,337 291,528 Expenditures:
Current:
Community development 4,341,439 1,365,540 2,975,899 Total Expenditures 4,341,439 1,365,540 2,975,899 Excess (Deficiency) Revenues over Expenditures (3,306,630) (39,203) 3,267,427 Other Financing Sources (Uses):
Transfers in 45,765 6,000 (39,765)
Transfers out (370,269) (368,819) 1,450 Total Other Financing Sources (Uses) (324,504) (362,819) (38,315) Net Change in Fund Balanc
e (3,631,134)$ (402,022) 3,229,112 $ Fund Balances - Beginning 5,893,302
Fund Balances - Ending 5,491,280$
164
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TRANSPORTATION SALES TAX
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 6,673,500 $ 2,897,705 $ (3,775,795) $ Use of money and property (investment loss) - 2,161 2,161 Other revenues 1,869,000 - (1,869,000)
Total Revenues 8,542,500 2,899,866 (5,642,634) Expenditures:
Current:
Capital outlay 22,573,576 4,448,993 18,124,583 Total Expenditures 22,573,576 4,448,993 18,124,583 Net Change in Fund Balanc
e (14,031,076)$ (1,549,127) 12,481,949 $ Fund Balances - Beginning (497,724)
Fund Balances - Ending (2,046,851)$
165
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
MOBILE PARK FEE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 65,000 $ 24,076 $ (40,924) $ Total Revenues 65,000 24,076 (40,924)
Expenditures:
Current:
Community development 67,070 43,849 23,221
Total Expenditures 67,070 43,849 23,221
Net Change in Fund Balanc
e (2,070)$ (19,773) (17,703)$
Fund Balances - Beginning 248,900
Fund Balances - Ending 229,127$
166
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
PUBLIC EDUCATION AND GOVT FEE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Other revenues 540,000 $ 416,801 $ (123,199) $ Total Revenues 540,000 416,801 (123,199) Expenditures:
Current:
General government 637,034 596,276 40,758 Capital outlay 338,000 258,143 79,857 Total Expenditures 975,034 854,419 120,615 Net Change in Fund Balanc
e (435,034)$ (437,618) (2,584)$ Fund Balances - Beginning 931,420
Fund Balances - Ending 493,802$
167
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
UTILITY TAX SETTLEMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) 13 $ 2,058$ 2,045$ Total Revenues 13 2,058 2,045
Expenditures:
Current:
General government 13 12 1
Total Expenditures 13 12 1
Net Change in Fund Balanc
e -$ 2,046 2,046$
Fund Balances - Beginning 101,526
Fund Balances - Ending 103,572$
168
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
NATIONAL OPIOID SETTLEMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) -$ 4,222$ 4,222$ Other revenues 301,208 88,160 (213,049)
Total Revenues 301,208 92,382 (208,826)
Expenditures:
Current:
General government 301,208 37 301,171
Total Expenditures 301,208 37 301,171
Excess (Deficiency) Revenues over Expenditures - 92,345 92,345 Net Change in Fund Balanc
e -$ 92,345 92,345$
Fund Balances - Beginning -
Fund Balances - Ending 92,345$
169
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
SPECIAL REVENUE ENDOWMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Expenditures:
Current:
Community development 190,485$ 99,527 $ 90,958 $ Total Expenditures 190,485 99,527 90,958 Net Change in Fund Balance (190,485) (99,527) 90,958 Fund Balances - Beginning -
Fund Balances - Ending (99,527)$
170
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DEVELOPER CONTRIBUTIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation 35,768,699$ 4,184,261 $ (31,584,438) $ Use of money and property (investment loss) 546 64,807 64,261 Other revenues 158,472 - (158,472)
Total Revenues 35,927,717 4,249,068 (31,678,649) Expenditures:
Current:
General governmen
t 15 15 -
Community development 1,076,472 183,139 893,333 Capital outlay 34,761,835 52,634 34,709,201
Total Expenditures 35,838,322 235,788 35,602,534 Net Change in Fund Balance 89,395$ 4,013,280 3,923,885 $ Fund Balances - Beginning 1,297,964
Restatements 158,472
Fund Balances - Beginning, as Restated 1,456,436
Fund Balances - Ending 5,469,716$
171
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DONATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) -$ 15,184$ 15,184$ Other revenues 732,877 128,099 (604,778) Total Revenues 732,877 143,283 (589,594) Expenditures:
Current:
General governmen
t 130,615 71,177 59,438
Community development 247,616 53,527 194,089 Public safety 276,006 16,106 259,900
Parks and recreation 145,979 8 145,971
Total Expenditures 800,216 140,818 659,398 Excess (Deficiency) Revenues over Expenditures (67,339) 2,465 69,804 Net Change in Fund Balance (67,339)$ 2,465 69,804$ Fund Balances - Beginning 160,934
Restatements 486,285
Fund Balances - Beginning, as Restated 647,219
Fund Balances - Ending 649,684$
172
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DEVELOPMENT IMPACT FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation 19,090,000$ 22,343,828 $ 3,253,828 $ Charges for service 350,000 384,808 34,808 Use of money and property (investment loss) 200,804 1,763,743 1,562,939 Total Revenues 19,640,804 24,492,379 4,851,575 Expenditures:
Current:
Community developmen
t 4,281,797 3,380,223 901,574
Capital outlay 42,105,861 34,114,290 7,991,571 Debt service:
Principal retirement 126,488 67,902 58,586 Interest and fiscal charges 392,695 187,896 204,799 Total Expenditures 46,906,841 37,750,311 9,156,530 Excess (Deficiency) Revenues over Expenditures (27,266,037) (13,257,932) 14,008,105 Other Financing Sources (Uses):
Transfers ou
t (5,276,291) (5,276,292) (1)
Total Other Financing Sources (Uses) (5,276,291) (5,276,292) (1) Net Change in Fund Balance (32,542,328)$ (18,534,224) 14,008,104 $ Fund Balances - Beginning 72,329,429
Fund Balances - Ending 53,795,205$
173
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
PARK ACQUISITION DEVELOPMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation 665,000$ 658,723 $ (6,277) $ Use of money and property (investment loss) 196,500 895,151 698,651 Total Revenues 861,500 1,553,874 692,374 Expenditures:
Current:
Community development 610,000 505,389 104,611 Capital outlay 1,500,000 - 1,500,000
Debt service:
Interest and fiscal charges 196,500 190,377 6,123 Total Expenditures 2,306,500 695,766 1,610,734 Excess (Deficiency) Revenues over Expenditures (1,445,000) 858,108 2,303,108 Other Financing Sources (Uses):
Transfers in 50,000 - (50,000)
Transfers out (81,743) (16,944) 64,798
Total Other Financing Sources (Uses) (31,743) (16,944) 14,798 Net Change in Fund Balance (1,476,743)$ 841,164 2,317,906 $ Fund Balances - Beginning 43,192,633
Fund Balances - Ending 44,033,797$
174
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
RESIDENTIAL CONSTRUCTION TAX
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Taxes 325,505 $ 166,875 $ (158,630) $ Use of money and property (investment loss) - (18,399) (18,399) Total Revenues 325,505 148,476 (177,029) Other Financing Sources (Uses):
Transfers ou
t (666,582) (632,071) 34,511 Total Other Financing Sources (Uses) (666,582) (632,071) 34,511 Net Change in Fund Balance (341,077)$ (483,595) (142,518) $ Fund Balances - Beginning (826,536)
Fund Balances - Ending (1,310,131)$
175
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HIGHWAY SAFETY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) -$ 19$ 19$ Total Revenues - $ 19$ 19$
Net Change in Fund Balance - 19 18
Fund Balances - Beginning 963
Fund Balances - Ending 982$
176
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
INDUSTRIAL DEVELOPMENT AUTHORITY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) -$ 2$ 2$
Total Revenues - 2 2
Net Change in Fund Balance -$ 2 2$
Fund Balances - Beginning 54
Fund Balances - Ending 56$
177
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
ASSESSMENT DISTRICT IMPROVEMENT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) 134$ 22,310$ 22,176$ Total Revenues 134 22,310 22,176
Expenditures:
Current:
General governmen
t 134 134 -
Total Expenditures 134 134 -
Excess (Deficiency) Revenues over Expenditures - 22,176 22,176 Net Change in Fund Balance -$ 22,176 22,176$
Fund Balances - Beginning 1,100,362
Fund Balances - Ending 1,122,538$
178
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
TRANSPORTATION PARTNERSHIP
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) -$ 4$ 4$
Total Revenues - 4 4
Net Change in Fund Balance -$ 4 4$
Fund Balances - Beginning 104
Restatements -
Fund Balances - Beginning, as Restated 104
Fund Balances - Ending 108$
179
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
OTHER TRANSPORTATION PROGRAM
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 3,045,432 $ 704,244 $ (2,341,188)$ Total Revenues 3,045,432 704,244 (2,341,188) Expenditures:
Current:
Capital outlay 8,095,655 2,363,880 5,731,775 Total Expenditures 8,095,655 2,363,880 5,731,775 Excess (Deficiency) Revenues over Expenditures (5,050,223) (1,659,636) 3,390,587 Net Change in Fund Balanc
e (5,050,223) (1,659,636) 3,390,587 Fund Balances - Beginning (646,508)
Fund Balances - Ending (2,306,144)$
180
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
CAPITAL PROJECTS FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) - $ 69,453$ 69,453$ Other revenues 210,000 49,083 (160,917)
Total Revenues 210,000 118,536 (91,464) Expenditures:
Current:
Public works 508,966 508,966 - Capital outlay 30,423,591 14,338,832 16,084,759 Total Expenditures 30,932,557 14,847,798 16,084,759 Excess (Deficiency) Revenues over Expenditures (30,722,557) (14,729,262) 15,993,295 Other Financing Sources (Uses):
Transfers in 10,355,062 8,739,618 (1,615,444) Transfers out (24,343) (24,343) -
Total Other Financing Sources (Uses) 10,330,719 8,715,274 (1,615,444) Net Change in Fund Balanc
e (20,391,838) (6,013,987) 14,377,851 $ Fund Balances - Beginning 5,332,548
Fund Balances - Ending (681,439)$
181
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
PUBLIC FINANCING AUTHORITY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) - $ (331,393)$ (331,393)$ Total Revenues - (331,393) (331,393)
Expenditures:
Current:
General government 15,278 13,000 2,278
Debt service:
Principal retirement 4,250,002 4,250,000 2 Interest and fiscal charges 2,557,397 2,557,393 4 Total Expenditures 6,822,677 6,820,393 2,284 Excess (Deficiency) Revenues over Expenditures (6,822,677) (7,151,786) (329,109) Other Financing Sources (Uses):
Transfers in 6,822,401 6,478,565 (343,836) Total Other Financing Sources (Uses) 6,822,401 6,478,565 (343,836) Net Change in Fund Balanc
e (276)$ (673,221) (672,945)$
Fund Balances - Beginning 5,883,740
Fund Balances - Ending 5,210,519$
182
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
MUNICIPAL FINANCING AUTHORITY
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) - $ 20,167$ 20,167$ Other revenues 246,000 246,113 113 Total Revenues 246,000 266,280 20,280 Expenditures:
Current:
General government 21,253 17,599 3,654
Debt service:
Principal retirement 7,860,000 7,860,000 - Interest and fiscal charges 2,776,921 2,776,920 1 Total Expenditures 10,658,174 10,654,519 3,655 Excess (Deficiency) Revenues over Expenditures (10,412,174) (10,388,239) 23,935 Other Financing Sources (Uses):
Transfers in 10,412,174 10,391,886 (20,288) Transfers out - - -
Total Other Financing Sources (Uses) 10,412,174 10,391,886 (20,288) Net Change in Fund Balanc
e -$ 3,647 3,647$
Fund Balances - Beginning (1,266)
Fund Balances - Ending 2,381$
183
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
CITY DEBT SERVICE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) - $ 2,015$ 2,015$ Total Revenues - 2,015 2,015
Expenditures:
Current:
General government 5,000 3,969 1,031
Debt service:
Principal retirement 8,057,426 8,057,426 (0) Interest and fiscal charges 7,679,215 7,055,771 623,444 Total Expenditures 15,741,641 15,117,166 624,475 Excess (Deficiency) Revenues over Expenditures (15,741,641) (15,115,151) 626,490 Other Financing Sources (Uses):
Transfers in 15,741,641 15,095,588 (646,053) Total Other Financing Sources (Uses) 15,741,641 15,095,588 (646,053) Net Change in Fund Balanc
e -$ (19,563) (19,563)$
Fund Balances - Beginning 474,132
Fund Balances - Ending 454,569$
184
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
NOTES PAYABLE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Other revenues 258,000 $ - $ (258,000)$
Total Revenues 258,000 - (258,000)
Expenditures:
Debt service:
Principal retirement 794,185 786,898 7,286 Interest and fiscal charges 173,437 173,435 2 Total Expenditures 967,622 960,333 7,289 Excess (Deficiency) Revenues over Expenditures (709,622) (960,333) (250,711) Other Financing Sources (Uses):
Transfers in 967,335 960,333 (7,002) Total Other Financing Sources (Uses) 967,335 960,333 (7,002) Net Change in Fund Balanc
e 257,713$ - (257,713)$
Fund Balances - Beginning 40,127
Fund Balances - Ending 40,127$
185
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
LEASE PAYABLE
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Variance with
Final Budget
Actual on a Positiv e
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property (investment loss) - $ (370)$ (370)$ Other revenues 12,700 12,818 118
Total Revenues 12,700 12,448 (252)
Expenditures:
Debt service:
Principal retirement 470,989 274,188 196,801 Interest and fiscal charges 69,829 22,228 47,601
Total Expenditures 540,818 296,416 244,402 Excess (Deficiency) Revenues over Expenditures (528,118) (283,968) 244,150 Other Financing Sources (Uses):
Transfers in 283,718 283,760 42 Transfers out (100,665) (100,664) 1 Total Other Financing Sources (Uses) 183,053 183,096 43 Net Change in Fund Balanc
e (345,065)$ (100,872) 244,193 $ Fund Balances - Beginning 97,814
Fund Balances - Ending (3,058)$
186
187
CITY OF
CHULA VISTA
CITY OF CHULA VISTA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2023
Bayfront Trolley
Station Transit Fund
Chula Vista
Muni Golf Course
Transport
Enterprise
ASSETS
Current Assets:
Cash and investments 89,548 $ 87,532$ 135,711$ 2,081,751$ Cash with fiscal agent - - 864,549 -
Receivables:
Accounts (net of allowance for uncollectibles) - - - 12,666,233 Accrued interest 488 495 - 26,249
Prepaid costs - - 936 -
Inventories - - 123,078 -
Total Current Assets 90,036 88,027 1,124,274 14,774,233 Capital assets:
Land - - 598,659 -
Buildings and structures - - 727,553 -
Machinery and equipment - 42,304 117,382 4,484,516
Less accumulated depreciation/amortization - (37,418) (648,287) (2,211,931) Total Noncurrent Assets - 4,886 795,307 2,272,585
Total Assets 90,036 92,913 1,919,581 17,046,818
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows - - - 3,928,676
OPEB deferred outflows - - - 335,101
Total Deferred Outflows of Resources - - - 4,263,777
LIABILITIES
Current Liabilities:
Accounts payable - - 198,838 252,898
Accrued liabilities - - 23,232 300,989
Accrued interest payable - 11,414
Accrued compensated absences - - - 199,208
Bonds, notes, subscriptions, and financed purchases - - - 903,001 Total Current Liabilities - - 222,070 1,667,510
Noncurrent Liabilities:
Advances from other funds - - - 2,340,621
Accrued compensated absences - - 24,970 -
Net pension liabilit
y - - - 1,818,596
Net OPEB liability - - - 1,422,737
Bonds, notes, subscriptions, and financed purchases - - - 1,833,250 Total Noncurrent Liabilities - - 24,970 7,415,204
Total Liabilities - - 247,040 9,082,714
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows - - - 353,128
OPEB deferred inflows - - - 178,779
Total Deferred Inflows of Resources - - - 531,907
NET POSITION (DEFICIT)
Net investment in capital assets - 4,886 795,307 (463,666) Unrestricted 90,036 88,027 877,234 12,159,640
Total Net Position (Deficit) 90,036$ 92,913$ 1,672,541$ 11,695,974$ Business-Type Activities - Enteprise Funds
188
CITY OF CHULA VISTA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2023
ASSETS
Current Assets:
Cash and investments
Cash with fiscal agen
t
Receivables:
Accounts (net of allowance for uncollectibles)
Accrued interes
t
Prepaid costs
Inventories
Total Current Assets
Capital assets:
Lan
d
Buildings and structures
Machinery and equipmen
t
Less accumulated depreciation/amortization
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows
OPEB deferred outflows
Total Deferred Outflows of Resources
LIABILITIES
Current Liabilities:
Accounts payable
Accrued liabilities
Accrued interest payable
Accrued compensated absences
Bonds, notes, subscriptions, and financed purchases
Total Current Liabilities
Noncurrent Liabilities:
Advances from other funds
Accrued compensated absences
Net pension liabilit
y
Net OPEB liability
Bonds, notes, subscriptions, and financed purchases
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows
OPEB deferred inflows
Total Deferred Inflows of Resources
NET POSITION (DEFICIT)
Net investment in capital assets
Unrestricted
Total Net Position (Deficit)
Living Coast
Discovery Center Totals
28,930$ 2,423,472$
- 864,549
- 12,666,233
363 27,595
- 936
- 123,078
29,293 16,105,863
- 598,659
- 727,553
- 4,644,202
- (2,897,636)
- 3,072,778
29,293 19,178,641
- 3,928,676
- 335,101
- 4,263,777
30,091 481,827
- 324,221
- 11,414
- 199,208
- 903,001
30,091 1,919,671
- 2,340,621
- 24,970
- 1,818,596
- 1,422,737
- 1,833,250
- 7,440,174
30,091 9,359,845
- 353,128
- 178,779
- 531,907
- 336,527
(798) 13,214,139
(798)$ 13,
550,666$
Business-Type Activities - Enteprise
Funds
189
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30,
2023
Bayfront Trolley
Station Transit Fund
Chula Vista
Muni Golf
Course
Transport
Enterprise
OPERATING REVENUES
Sales and service charges -$ -$ 3,214,664$ 18,224,005$ Other - - - -
Total Operating Revenues - - 3,214,664 18,224,005
OPERATING EXPENSES
Administration and general 11 22 3,121,922 10,231,954 Depreciation/amortization expense - 8,461 51,912 884,806 Total Operating Expenses 11 8,483 3,173,834 11,116,760 Operating Income (Loss) (11) (8,483) 40,830 7,107,245
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss) 1,285 786 - (92,104)
Interest expense - - - (87,817)
Total Nonoperating Revenues (Expenses): 1,285 786 - (179,921) Income (Loss) Before Transfers 1,274 (7,697) 40,830 6,927,324 Transfers in - - - 58,000
Transfers ou
t - - - (3,259,685)
Change in Net Position 1,274 (7,697) 40,830 3,725,639
NET POSITION (DEFICIT) - BEGINNING 88,762 100,610 1,631,711 7,970,335 NET POSITION (DEFICIT) - ENDING 90,036$ 92,913$ 1,672,541$ 11,695,974$ Business -Type Activities - Enterprise Funds
190
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023OPERATING REVENUES
Sales and service charges
Othe
r
Total Operating Revenues
OPERATING EXPENSES
Administration and general
Depreciation/amortization expense
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss)
Interest expense
Total Nonoperating Revenues (Expenses):
Income (Loss) Before Transfers
Transfers in
Transfers ou
t
Change in Net Position
NET POSITION (DEFICIT) - BEGINNING
NET POSITION (DEFICIT) - ENDING
Living Coast
Discovery Center Totals
-$ 21,438,669$
- -
- 21,438,669
173,295 13,527,204
- 945,179
173,295 14,472,383
(173,295) 6,966,286
(467) (90,500)
- (87,817)
(467) (178,317)
(173,762) 6,787,969
173,762 231,762
- (3,259,685)
- 3,760,046
(798) 9,790,620
(798)$ 13,550,666$
Business -Type Activities - Enterprise
Funds
191
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Bayfront Trolley
Station Transit Fund
Chula Vista
Muni Golf
Course
Transport
Enterprise
CASH FLOWS FROM OPERATING ACTIVITES
Cash received from customers and users - $ -$ 3,215,018$ 17,561,722$ Cash paid to suppliers for goods and services (11) (22) (1,805,096) (5,031,029) Cash paid to employees for services - - (1,366,682) (6,469,534) Cash received from others - - 40,849 -
Net Cash Provided by (Used for)
Operating Activities (11) (22) 84,089 6,061,159
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in - - - 58,000
Cash transfers out - - - (3,259,685)
Cash received from interfund borrowings - - - -
Repayment of interfund borrowings - - - (442,528)
Net Cash Provided by (Used for)
Non-Capital Financing Activities - - - (3,644,213)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets - - - (98,266) Principal paid on capital deb
t - - - (894,038)
Interest paid on capital debt - - - (91,546)
Net Cash Used for
Capital and Related Financing Activities - - - (1,083,850)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment loss 1,168 668 - (111,735)
Net Cash Used for
Investing Activities 1,168 668 - (111,735)
Net Increase (Decrease)
in Cash and Cash Equivalents 1,157 646 84,089 1,221,361 Cash and Cash Equivalents - July 1 88,391 86,886 916,171 860,390 Cash and Cash Equivalents - June 30 89,548$ 87,532$ 1,000,260$ 2,081,751$ Reconciliation of Cash and Cash E quivalents to the Amounts Re ported on the Statement of Net Position
Cash and investments 89,548 $ 87,532 $ 135,711 $ 2,081,751 $ Cash with fiscal agent - - 864,549 -
Total Cash and Cash Equivalents reported
on the Statement of Net Position 89,548$ 87,532$ 1,000,260$ 2,081,751$ Business-Type Activities - Enterprise Funds
192
192
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITES
Cash received from customers and users
Cash paid to suppliers for goods and services
Cash paid to employees for services
Cash received from others
Net Cash Provided by (Used for)
Operating Activities
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in
Cash transfers ou
t
Cash received from interfund borrowings
Repayment of interfund borrowings
Net Cash Provided by (Used for)
Non-Capital Financing Activities
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets
Principal paid on capital deb
t
Interest paid on capital debt
Net Cash Used for
Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment loss
Net Cash Used for
Investing Activities
Net Increase (Decrease)
in Cash and Cash Equivalents
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30
Reconciliation of Cash and Cash E quivalents to the Amounts Re ported on the Statement of Net Position
Cash and investments
Cash with fiscal agent
Total Cash and Cash Equivalents reported
on the Statement of Net Position
Living Coast
Discovery
Center Totals
-$ 20,776,740$
(143,824) (6,979,982)
- (7,836,216)
- 40,849
(143,824) 6,001,391
173,762 231,762
- (3,259,685)
(178) (178)
- (442,528)
173,584 (3,470,629)
- (98,266)
- (894,038)
- (91,546)
- (1,083,850)
(830) (110,729)
(830) (110,729)
28,930 1,336,183
- 1,951,838
28,930$ 3,288,021$
28,930$ 2,423,472$
- 864,549
28,930$ 3,288,021$
Business -Type Activities -
Enterprise Funds
193
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Bayfront Trolley
Station Transit Fund
Chula Vista
Muni Golf
Course
Transport
Enterprise
Business-Type Activities - Enterprise Funds
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities:
Operating income (loss) (11) $ (8,483)$ 40,830$ 7,107,245$ Adjustments to Reconcile Operating Income (loss)
to Net Cash Provided by (Used for) Operating Activities:
Depreciation/Amortization - 8,461 51,912 884,806
(Increase) decrease in accounts receivable - - 354 (662,646) (Increase) decrease in prepaid costs and inventories - - (36,299) - (Increase) decrease in deferred outflows from pensions - - - (3,928,676) (Increase) decrease in deferred outflows from OPEB - - - 17,939 Increase (decrease) in accounts payable - - 40,849 (43,789) Increase (decrease) in accrued liabilities - - (14,028) 48,739 Increase (decrease) in compensated absences - - 471 199,208 Increase (decrease) in net pension liability - - - 1,818,596 Increase (decrease) in net OPEB liability - - - 220,457 Increase (decrease) in deferred inflows from pensions - - - 353,128 Increase (decrease) in deferred inflows from OPEB - - - 46,152 Total Adjustments - 8,461 43,259 (1,046,086) Net Cash Provided by (Used for)
Operating Activities (11)$ (22)$ 84,089$ 6,061,159$ 194
194
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30,
2023
Reconciliation of Operating Income (Loss) to
Net Cash Provided by (Used for) Operating Activities:
Operating income (loss)
Adjustments to Reconcile Operating Income (loss)
to Net Cash Provided by (Used for) Operating Activities:
Depreciation/Amortization
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid costs and inventories
(Increase) decrease in deferred outflows from pensions
(Increase) decrease in deferred outflows from OPEB
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) in compensated absences
Increase (decrease) in net pension liabilit
y
Increase (decrease) in net OPEB liability
Increase (decrease) in deferred inflows from pensions
Increase (decrease) in deferred inflows from OPEB
Total Adjustments
Net Cash Provided by (Used for)
Operating Activities
Livin
g Coast
Discovery
Center Totals
Business -Type Activities -
Enterprise Funds
(173,295)$ 6,966,286 $
- 945,179
- (662,292)
- (36,299)
- (3,928,676)
- 17,939
29,471 26,531
- 34,711
- 199,679
- 1,818,596
- 220,457
- 353,128
- 46,152
29,471 (964,895)
(143,824)$ 6,001,391$
195
CITY OF CHULA VISTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2023
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
ASSETS
Current Assets:
Cash and investments 3,217,293$ 2,650$ 8,971,305$ 12,191,248$ Cash with fiscal agent 12 - - 12
Receivables:
Accounts (net of allowance for uncollectibles) 34,892 - - 34,892 Accrued interest 3,949 - - 3,949
Due from other governments 131 - - 131
Prepaid costs 2,695 - - 2,695
Total Current Assets 3,258,972 2,650 8,971,305 12,232,927 Capital assets:
Machinery and equipment 5,534,682 - - 5,534,682 Less accumulated depreciation/amortization (4,686,390) - - (4,686,390) Total Noncurrent Assets 848,292 - - 848,292
Total Assets 4,107,264 2,650 8,971,305 13,081,219
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflow
s 1,055,838 - - 1,055,838
OPEB deferred outflows 58,509 - - 58,509
Total Deferred Outflows of Resources 1,114,347 - - 1,114,347
LIABILITIES
Current Liabilities:
Accounts payabl
e 275,426 - 122,735 398,161
Accrued liabilities 50,645 - - 50,645
Accrued interest payable 3,313 - - 3,313
Accrued compensated absences 19,490 - - 19,490
Bonds Payable 49,170 - - 49,170
Total Current Liabilities 398,044 - 122,735 520,779
Noncurrent Liabilities:
Accrued compensated absences 58,048 - - 58,048
Net pension liability 488,750 - - 488,750
Net OPEB liability 248,414 - - 248,414
Bonds Payable 1,778,539 - - 1,778,539
Total Noncurrent Liabilities 2,573,751 - - 2,573,751 Total Liabilities 2,971,795 - 122,735 3,094,530
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflow
s 94,904 - - 94,904
OPEB deferred inflows 31,215 - - 31,215
Total Deferred Inflows of Resources 126,119 - - 126,119
NET POSITION (DEFICIT)
Net investment in capital asset
s 848,292 - - 848,292
Unrestricted 1,275,405 2,650 8,848,570 10,126,625 Total Net Position (Deficit): 2,123,697 $ 2,650 $ 8,848,570$ 10,974,917$ Governmental Activities - Internal Service Funds
196
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
OPERATING REVENUES
Sales and service charges 125,551$ - $ -$ 125,551$ Interdepartmental charges 4,861,669 - 4,785,897 9,647,566 Other 343,660 - 60,602 404,262
Total Operating Revenues 5,330,880 - 4,846,499 10,177,379
OPERATING EXPENSES
Administration and genera
l 5,009,061 - 4,693,803 9,702,864
Depreciation/amortization expense 184,900 - - 184,900 Total Operating Expenses 5,193,961 - 4,693,803 9,887,764 Operating Income (Loss) 136,919 - 152,696 289,615
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss
) 24,564 - - 24,564
Interest expense (42,045) - - (42,045)
Gain on disposal of capital assets 48,356 - - 48,356 Total Nonoperating Revenues (Expenses) 30,875 - - 30,875 Income (Loss) Before Transfers 167,794 - 152,696 320,490 Transfers in 321,760 - - 321,760
Transfers out (82,673) - - (82,673)
Change in Net Position 406,881 - 152,696 559,577
NET POSITION (DEFICIT) - BEGINNING 1,716,816 2,650 8,695,874 10,415,340 NET POSITION (DEFICIT) - ENDING 2,123,697$ 2,650$ 8,848,570$ 10,974,917$ Governmental Activities - Internal Service Funds
197
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH
FLOWS INTERNAL SERVICE FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 474,163$ -$ -$ 474,163$ Cash received from interfund service provided 4,861,669 - 4,846,499 9,708,168 Cash paid to suppliers for goods and services (3,875,989) - (509,902) (4,385,891) Cash paid to employees for services (1,179,865) - (4,101,916) (5,281,781) Net Cash Provided by (Used for)
Operating Activities 279,978 - 234,681 514,659
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in 321,760 - - 321,760
Cash transfers out (82,673) - - (82,673) Principal payments on pension bonds (48,024) - - (48,024) Interest paid on pension bonds (42,054) - - (42,054) Net Cash Provided by (Used for)
Non-Capital Financing Activities 149,009 - - 149,009
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Proceeds from sales of capital assets 48,356 - - 48,356 Acquisition and construction of capital assets (587,351) - - (587,351) Net Cash Used for
Capital and Related Financing Activities (538,995) - - (538,995)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment loss 25,263 - - 25,263
Net Cash Used for
Investing Activities 25,263 - - 25,263
Net Increase in Cash and Cash Equivalents (84,745) - 234,681 149,936 Cash and Cash Equivalents - July 1 3,302,050 2,650 8,736,624 12,041,324 Cash and Cash Equivalents - June 30 3,217,305$ 2,650$ 8,971,305$ 12,191,260$ Reconciliation of Cash and Cash Equivalents to the
Amounts Reported on the Statement of Net Position
Cash and inv
estments 3,217,293$ 2,650$ 8,971,305$ 12,191,248$ Cash with fiscal agent 12 - - 12
Total Cash and Cash Equivalents reported
on the Statement of Net Position 3,217,305$ 2,650$ 8,971,305$ 12,191,260$ Governmental Activities - Internal Service Funds
198
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2023
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
Governmental Activities - Internal Service Funds
Reconciliation of Operating Income (Loss) to Net
Cash Provided by Operating Activities:
Operating income (loss) 136,919 $ - $ 152,696$ 289,615$ Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation/Amortization 184,900 - - 184,900 (Increase) decrease in accounts receivable 4,952 - - 4,952 (Increase) decrease in prepaid costs 123 - - 123
(Increase) decrease in deferred outflows from pensions (957,657) - - (957,657) (Increase) decrease in deferred outflows from OPEB 9,383 - - 9,383 Increase (decrease) in accounts payable (227,896) - 81,985 (145,911) Increase (decrease) in accrued liabilities 7,030 - - 7,030 Increase (decrease) in compensated absences (13,547) - - (13,547) Increase (decrease) in net pension liability 2,171,219 - - 2,171,219 Increase (decrease) in net OPEB liability 17,206 - - 17,206 Increase (decrease) in deferred inflows from pensions (1,058,364) - - (1,058,364) Increase (decrease) in deferred inflows from OPEB 5,710 - - 5,710 Total Adjustments 143,059 - 81,985 225,044 Net Cash Provided by (Used for)
Operating Activities 279,978$ -$ 234,681$ 514,659$ 199
CITY OF CHULA VISTA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2023
Special
Assessment
Districts
Bayfront Special
Tax District
CV Bayfront
Facilities
Financing
Authority Total
ASSETS
Cash and cash equivalents 8,231,022$ 150,639$ -$ 8,381,661$ Cash and cash equivalents held with fiscal agents 34,423,353 - 96,009,063 130,432,416 Receivables:
Accounts 75,720 - 419,137 494,857
Taxes - 100,134 - 100,134
Notes and loans - - 103,937,814 103,937,814
Accrued interest 155,820 765 - 156,585
Advances to other funds - - - -
Capital assets, not being depreciated - - 135,822,432 135,822,432 Total Assets 42,885,915 251,538 336,188,446 379,325,899
LIABILITIES
Accounts payable 385 - 12,167,669 12,168,054
Accrued interest 1,958,303 7,053 - 1,965,356 Deposit payable 120,532 - - 120,532
Due to bond holders 13,333,125 - - 13,333,125 Long-term liabilities:
Due within one year:
Loans Payable - 550,000 - 550,000
Due in more than one year:
Bonds Payable - - 202,789,453 202,789,453
Loans Payable - 103,387,814 - 103,387,814
Total Liabilities 15,412,345 103,944,867 214,957,122 334,314,334 NET POSITION (DEFICIT):
Net investment in capital assets - - 1,924,016 1,924,016 Restricted:
Individuals, organizations, and other governments 27,473,570 (103,693,329) 119,307,308 43,087,549 Total Net Position (Deficit) 27,473,570$ (103,693,329)$ 121,231,324$ 45,011,565$ 200
CITY OF CHULA VISTA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Special
Assessment
Districts
Bayfront Special
Tax District
CV Bayfront
Facilities
Financing
Authority Total
ADDITIONS
Investment Earnings:
Net decrease in fair value of investments 16,748$ (1,840)$ 377,628$ 392,536$ Interest, dividends, and other 989,530 4,857 2,449,867 3,444,254 Total Investment Earnings 1,006,278 3,017 2,827,495 3,836,790 Contributions from other governments - - 12,600,672 12,600,672 Special assessments 13,154,581 560,186 - 13,714,767 Special tax district contribution - - - -
Transfers in - - 57,213,203 57,213,203
Total Additions 14,160,858 563,203 72,641,370 87,365,431
DEDUCTIONS
Administrative expenses 1,030 14 - 1,044
Contractual services 246,602 44,004 12,083,049 12,373,655 Debt service and fiscal agent charges 12,813,146 31,116 13,628,351 26,472,613 Transfers out - 57,213,203 - 57,213,203
Total Deductions 13,060,778 57,288,337 25,711,400 96,060,515 Net Increase in Fiduciary Net Position 1,100,080 (56,725,134) 46,929,970 (8,695,084) NET POSITION (DEFICIT) - BEGINNING 41,595,081 234,473 27,098,686 68,928,240 Restatements (15,221,591) (47,202,668) 47,202,668 (15,221,591) Net Position (Deficit) - Beginning, as restated 26,373,490 (46,968,195) 74,301,354 53,706,649 NET POSITION (DEFICIT) - ENDING 27,473,570$ (103,693,329)$ 121,231,324$ 45,011,565$ 201
202
CITY OF
CHULA VISTA
Page No.
Financial Trends
These schedules contain information to help the reader understand how 204-211 the city's financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors 212-215 affecting the city's ability to generate its property and sales taxes.
Debt Capacity
These schedules present information to help the reader assess the 216-222 affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future.
Demographic and Economic Information 223-224
These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financial activities take place and to help make comparisons over time and with other governments.
Operating Information 225-227
These schedules contain information about the city's operations and resources to help the reader understand how the city's financial information relates to the services the city provides and the activities it performs.
CITY OF CHULA VISTA
Statistical Section
June 30
Table of Contents
This part of the City of Chula Vista's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City's overall financial health. 203
2014 2015 2016 2017 2018
CITY OF CHULA VISTA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year
Governmental activities:
Net investment in capital assets 649,314,016$ 643,174,160$ 672,940,012$ 1,031,902,782$ 963,595,553$ Restricted 107,106,257 129,460,665 125,439,323 128,114,370 143,958,910 Unrestricted 22,522,443 (245,432,296) (222,570,459) (222,843,737) (139,744,867) Total governmental activities net position 778,942,716 527,202,529 575,808,876 937,173,415 967,809,596 Business-type activities:
Net investment in capital assets 136,513,268 134,368,634 135,989,851 331,199,513 327,687,650 Restricted - 5,141,430 2,803,451 2,593,403 - Unrestricted 97,393,640 71,945,411 67,970,476 72,366,978 78,539,054 Total business-type activities net position 233,906,908 211,455,475 206,763,778 406,159,894 406,226,704 Primary government:
Net investment in capital assets 785,827,284 777,542,794 808,929,863 1,363,102,295 1,291,283,203 Restricted 107,106,257 134,602,095 128,242,774 130,707,773 143,958,910 Unrestricted 119,916,083 (173,486,885) (154,599,983) (150,476,759) (61,205,813) Total primary government net position 1,012,849,624$ 738,658,004 $ 782,572,654 $ 1,343,333,309$ 1,374,036,300 $ 204
2019 2020 2021 2022 2023
997,561,287$ 1,048,711,594$ 1,092,307,720$ 1,139,225,615$ 1,228,680,322$ 167,223,184 181,367,432 196,782,954 230,821,470 287,363,139 (139,394,302) (135,426,227) (123,311,317) (109,552,312) (120,215,065) 1,025,390,169 1,094,652,799 1,165,779,357 1,260,494,773 1,395,828,396 322,072,495 317,722,714 317,133,368 324,179,036 325,567,886 - - 565,547 - -
90,839,632 102,067,475 107,279,738 136,075,366 152,394,676 412,912,127 419,790,189 424,978,653 460,254,402 477,962,562 1,319,633,782 1,366,434,308 1,409,441,088 1,463,404,651 1,554,248,208 167,223,184 181,367,432 197,348,501 230,821,470 287,363,139 (48,554,670) (33,358,752) (16,031,579) 26,523,054 32,179,611 1,438,302,296$ 1,514,442,988 $ 1,590,758,010 $ 1,720,749,175 $ 1,873,790,958 $ 205
CITY OF CHULA VISTA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year 2014 2015 2016 2017 2018
Expenses:
Governmental activities:
General government 25,386,867$ 36,693,953$ 25,564,824$ 35,375,230$ 29,311,449$ Public safety 74,896,803 81,002,999 87,749,418 94,716,683 106,802,130 Community development - - 1,974,046 1,552,750 18,617,269 Community services - 12,837 5,632 14,990 -
Public works 63,312,155 62,454,130 67,910,401 68,885,918 72,192,449 Parks and recreation 6,118,351 6,441,907 6,834,240 6,875,635 9,553,392 Library 4,092,263 3,906,984 3,997,677 5,018,878 1,542,733 Interest on long-term debt 7,287,461 6,776,635 6,073,434 4,673,047 7,718,906 Total governmental activities expenses 181,093,900 197,289,445 200,109,672 217,113,131 245,738,328 Business-type activities:
Transit 6,875,214 4,807,985 86,512 39,594 13,008 Bayfront trolley station 61,823 59,863 - - 27 Transport enterprise - - - - -
Sewer fund 26,046,175 31,615,457 25,234,891 32,179,875 34,857,066 Sewer DIFs 129,279 120,197 1,146,838 8,305 34,547 Development services fund 6,113,133 5,996,109 5,741,600 6,655,654 10,683,709 Chula Vista Mini Golf Course - - - 27,092 - CV Elite Athlete Training Ctr - - - 449,028 676,260 Living Coast Discovery Center - - - - -
Total business-type activities expenses 39,225,624 42,599,611 32,209,841 39,359,548 46,264,617 Total primary government expenses 220,319,524 239,889,056 232,319,513 256,472,679 292,002,945 Program revenues:
Governmental activities:
Charges for services:
General government 8,767,069 7,623,676 6,468,756 12,317,921 8,562,792 Public safety 10,198,058 12,100,712 11,764,603 11,997,221 178,674 Community development - 297,866 730,197 771,603 17,920,527 Public works 30,495,980 31,703,848 24,218,733 32,598,199 23,487,119 Parks and recreation 5,292,433 4,511,278 10,683,649 8,221,019 1,490,236 Library 1,078,592 1,302,869 1,943,416 1,575,837 872,352 Operating contributions and grants 29,456,557 25,102,165 22,416,276 22,751,556 21,246,015 Capital contributions and grants 1,921,554 12,954,191 7,143,130 5,619,731 33,859,885 Total governmental activities
program revenues 87,210,243 95,596,605 85,368,760 95,853,087 107,617,600 Business-type activities:
Charges for services:
Transit fund 2,672,231 1,503,262 - - -
Sewer fund 33,190,660 36,054,603 35,775,374 36,289,930 37,870,947 Sewer DIFs 268,092 166,333 239,143 111,907 1,201,669 Development services fund 6,338,495 6,118,566 6,546,936 7,291,037 10,596,287 Chula Vista Muni Golf Course - - - - -
Transport Enterprise - - - - -
Operating grants and contributions 3,800,358 5,474,658 306,884 - 104,899 Capital grants and contributions - - - - -
Total business-type activities
program revenues 46,269,836
49,317,422 42,868,337 43,692,874 49,773,802
Total primary government
program revenues 133,480,079
144,914,027 128,237,097 139,545,961 157,391,402
Net revenues (expenses):
Governmental activities (93,883,657) (101,692,840) (114,740,912) (121,260,044) (138,120,728) Business-type activities 7,044,212 6,717,811 10,658,496 4,333,326 3,509,185 Total net revenues (expenses) (86,839,445) (94,975,029) (104,082,416) (116,926,718) (134,611,543) General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 45,266,172 47,485,292 50,136,856 53,248,196 56,512,850 Sales tax 29,171,174 41,883,924 33,317,380 36,469,033 57,541,043 Other taxes 32,145,209 23,225,498 24,463,262 24,101,777 32,496,156 Investment income 1,944,988 4,216,186 6,233,144 2,954,403 5,652,663 Other general revenues 686,054 12,921,129 1,034,027 8,970 - Miscellaneous - 27,882 336,661 1,677,271 12,675,502 Gain (loss) on sale of capital asset - - - - -
Special Item - - - - -
Transfers 3,551,004 3,848,746 2,799,555 4,180,778 4,170,702 Total governmental activities 112,764,601 133,608,657 118,320,885 122,640,428 169,048,916 Business-type activities:
Investment income 1,505,052 657,343 1,357,938 322,527 1,155,739 Miscellaneous 845,650 2,789,595 524,616 198,847,750 414,696 Gain (loss) on sale of capital asset - - - 115,703 - Transfers (3,551,004) (3,848,746) (2,799,555) (4,180,778) (4,170,702) Total business-type activities (1,200,302) (401,808) (917,001) 195,105,202 (2,600,267) Total primary government 111,564,299 133,206,849 117,403,884 317,745,630 166,448,649 Changes in net position
Governmental activities 18,880,944 31,915,817 3,579,973 1,380,384 30,928,188 Business-type activities 5,843,910 6,316,003 9,741,495 199,438,528 908,918 Total primary government 24,724,854$ 38,231,820$ 13,321,468$ 200,818,912$ 31,837,106$ 206
2019 2020 2021 2022 2023
27,922,521$ 33,033,582$ 18,121,564$ 57,993,429$ 43,199,147$ 111,269,341 125,991,666 131,262,122 111,173,472 130,847,798 11,153,109 11,768,626 8,555,836 45,701,258 25,674,814 - - - - -
57,563,725 69,016,706 68,218,192 58,402,021 81,289,367 14,633,191 16,592,077 40,789,923 13,542,362 5,783,062 1,007,869 1,107,068 4,505,740 2,954,806 3,749,853 6,740,877 6,027,344 8,857,969 15,631,745 13,400,138 230,290,633 263,537,069 280,311,346 305,399,093 303,944,179 160,797 13,923 8,461 8,500 8,483
- - - 19 11
- - 3,634,677 12,006,347 11,191,576
36,815,795 38,523,661 39,808,699 33,398,914 40,934,038 495,865 510,789 438,680 305,619 387,959
10,755,535 9,644,465 10,165,866 8,233,072 10,155,101 - - - 2,982,489 3,173,834
595,579 691,256 585,009 575,339 1,219,972
- 95,405 101,112 118,750 172,989
48,823,571 49,479,499 54,742,504 57,629,049 67,243,963 279,114,204 313,016,568 335,053,850 363,028,142 371,188,142 5,004,895 1,194,045 3,685,466 6,763,379 1,943,828 5,865,227 8,154,003 6,912,095 7,752,570 8,933,510 4,701,195 46,290,223 10,780,843 5,836,312 9,647,486 23,562,841 24,140,150 20,949,678 30,823,899 30,697,778 2,134,964 2,066,000 1,576,819 2,101,823 2,479,537 877,744 653,790 701,945 810,146 604,712
20,686,617 16,656,454 25,787,760 47,300,700 54,392,158 27,052,711 25,449,043 59,987,995 58,796,673 62,001,862 89,886,194 124,603,708 130,382,601 160,185,502 170,700,871 - - - - -
44,213,351 44,740,438 42,091,953 49,050,723 49,117,788 1,265,579 834,494 594,707 886,029 832,475
9,317,298 9,269,133 10,617,448 10,807,052 9,298,438 - - - 3,300,593 3,214,664
- - - 19,980,980 18,224,005
163,380 33,893 185,587 - -
- - 2,672,900 - -
54,959,608 54,877,958 56,162,595 84,025,377 80,687,370 144,845,802 179,481,666 186,545,196 244,210,879 251,388,241 (140,404,439) (138,933,361) (149,928,745) (145,213,591) (133,243,308) 6,136,037 5,398,459 1,420,091 26,396,328 13,443,407 (134,268,402) (133,534,902) (148,508,654) (118,817,263) (119,799,901) 59,841,972 62,905,983 66,864,796 69,565,097 75,655,629 73,187,780 78,964,672 92,895,930 102,428,825 103,350,833 35,204,174 35,247,893 38,175,933 41,671,204 46,690,873 12,243,685 14,062,136 4,836,055 (6,855,109) 9,523,650 - - - - -
13,963,434 13,897,888 12,696,745 21,755,785 11,184,009 102,283 - 105,741 192,543 (296,411)
- - - - (2,765,896)
4,339,276 4,352,954 4,664,733 7,527,863 7,965,818 198,882,604 209,431,526 220,239,933 236,286,208 251,308,505 4,575,679 5,450,627 1,175,687 (3,650,561) 2,319,648 252,213 380,617 7,245,994 16,545,269 9,730,345
60,770 1,313 11,425 47,609 70,150
(4,339,276) (4,352,954) (4,664,733) (7,527,863) (7,965,818) 549,386 1,479,603 3,768,373 5,414,454 4,154,325 199,431,990 210,911,129 224,008,306 241,700,662 255,462,830 58,478,165 70,498,165 70,311,188 91,072,617 118,065,197 6,685,423 6,878,062 5,188,464 31,810,782 17,597,732 65,163,588$ 77,376,227$ 75,499,652$ 122,883,399$ 135,662,929$ 207
2014 2015 2016 2017 2018
CITY OF CHULA VISTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
General fund:
Nonspendable 7,424,812$ 7,419,002$ 1,527,055$ 7,363,413$ 7,676,350$ Restricted - - - - -
Committed 6,215,601 7,602,021 6,417,095 5,938,600 64,147,929 Assigned 4,807,244 4,688,124 4,315,568 8,526,339 11,866,874 Unassigned 14,511,252 16,412,879 25,132,939 20,020,613 24,512,363 Total general fund 32,958,909 36,122,026 37,392,657 41,848,965 108,203,516 All other governmental funds:
Nonspendable 23,537,524 $ - $ 5,834,630$ 5,460$ 3,459$ Restricted 107,106,257 129,464,688 125,439,323 128,114,370 143,915,260 Committed 10,677,564 9,584,176 9,068,623 6,583,603 6,303,075 Assigned - - 1,459,891 - 10,891
Unassigned (40,451,233) (37,216,118) (26,983,855) (19,394,021) (4,433) Total all other governmental funds 100,870,112$ 101,832,746 $ 114,818,612 $ 115,309,412 $ 150,228,252 $ 208
2019 2020 2021 2022 2023
7,578,086$ 9,290,599$ 12,559,029$ 12,121,324$ 5,302,883$ - - 1,042,970 9,465,060 25,673,596 46,370,754 11,082,859 11,904,304 11,731,844 18,253,033 41,546,738 66,514,060 65,282,025 79,567,415 75,747,000 23,378,859 25,636,659 28,315,924 27,682,371 24,895,945 118,874,437 112,524,177 119,104,252 140,568,014 149,872,457 4,277$ 189,587$ 519,258$ 504,336$ 490,908$ 167,241,347 181,367,432 195,739,984 220,356,410 261,198,635 5,219,729 5,321,988 5,344,272 - - 64,202 122,922 - - -
(2,147,643) (878,624) (2,583,780) (1,978,532) (2,429,054) 170,381,912$ 186,123,305 $ 199,019,734 $ 218,882,214 $ 259,260,489 $ 209
CITY OF CHULA VISTA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year 2014 2015 2016 2017 2018
Revenues:
Taxes 106,825,885$ 112,594,714$ 110,452,962$ 121,462,604$ 139,296,422$ Licenses and permits 1,355,342 1,322,254 1,328,020 1,290,968 1,601,980 Fines and forfeitures 1,685,268 2,280,880 1,942,656 1,805,508 2,035,823 Investment income (loss) 4,698,387 5,044,602 7,006,545 3,766,457 5,682,112 Developer fees 9,515,921 7,484,592 11,657,266 8,810,178 23,506,237 Intergovernmental 28,647,410 26,409,294 23,868,074 23,427,460 25,522,199 Charges for services 20,748,232 20,112,124 22,647,645 26,662,094 23,630,103 Contributions - - - - 11,176,064
Other 14,896,960 15,932,194 15,839,288 23,529,357 21,132,605 Total revenues 188,373,405 191,180,654 194,742,456 210,754,626 253,583,545 Expenditures
Current:
General government 29,341,881 26,413,901 29,087,838 33,218,003 23,723,205 Public safety 76,457,979 80,235,099 83,637,644 87,731,136 95,424,528 Public works 40,894,934 41,459,698 49,775,141 45,135,590 37,856,917 Community Development - - 1,974,046 2,030,654 17,601,341 Parks and recreation 3,590,441 3,746,349 4,059,567 4,246,605 4,276,366 Library 3,810,004 3,625,949 3,969,307 4,721,120 3,943,063 Capital outlay 15,347,338 22,216,530 12,976,408 19,172,666 40,843,898 Debt service:
Principal retirement 54,040,855 5,340,205 34,980,737 6,110,055 11,898,280 Interest and fiscal charges 7,850,448 6,678,144 6,437,941 5,194,264 8,382,476 Payment to refunded bond escrow agent - - 422,751 2,673,892 - Total expenditures 231,333,880 189,715,875 227,321,380 210,233,985 243,950,074 Excess (deficiency) of
revenues over (under)
expenditures (42,960,475) 1,464,779 (32,578,924) 520,641 9,633,471 Other financing sources (uses):
Transfers in 20,113,296 30,478,465 21,708,446 27,905,430 49,858,764 Transfers out (16,551,879) (27,503,760) (18,897,272) (25,949,256) (47,177,986) Proceeds from long-term debt 2,174,204 2,121,500 578,224 377,487 - Proceeds from bond sale - 45,920,000 - 34,330,000 34,485,000 Payment to escrow agent trust - - - (7,135,000) (36,860,637) Bond premium/(bond discount) - 3,537,111 - 2,262,493 2,836,273 Subscriptions - - - - -
Financed Purchase - - - - -
Leases - - - - 1,285,053
Total other financing sources (uses) 5,735,621 54,553,316 3,389,398 31,791,154 4,426,467 Special item - - - - -
Net change in fund balances (37,224,854)$ 56,018,095 $ (29,189,526) $ 32,311,795 $ 14,059,938 $ Debt service as a percentage of
noncapital expenditures 30.3% 6.9% 20.3% 6.0% 10.0%
210
2019 2020 2021 2022 2023
157,824,296$ 166,215,250$ 185,983,649$ 201,616,493$ 212,781,244$ 2,367,165 1,834,236 2,005,923 1,962,967 1,961,064 2,218,235 1,670,628 1,346,492 1,572,303 1,598,385 12,212,190 14,062,136 4,836,055 (6,841,017) 9,499,084 18,068,217 10,653,015 15,955,351 25,983,157 28,445,159 26,409,517 27,836,371 37,274,120 67,809,266 69,732,761 24,925,513 27,616,079 30,993,090 38,459,855 40,032,188 15,244,658 11,984,032 7,679,652 - - 17,419,459 16,225,790 19,790,763 11,027,272 8,663,030 276,689,250 278,097,537 305,865,095 341,590,296 372,712,915 23,452,836 28,002,094 81,861,532 56,671,621 39,194,530 101,580,642 114,661,942 286,042,703 109,040,668 117,430,150 29,974,482 33,284,800 87,018,056 34,949,572 46,209,666 10,860,838 10,951,941 19,453,357 45,770,658 24,315,988 11,208,237 10,661,708 44,357,263 11,596,166 4,837,190 3,948,154 3,580,413 10,709,718 3,115,863 3,478,517 49,253,675 51,371,872 49,508,887 31,055,664 62,025,766 11,760,783 12,810,263 13,254,548 20,191,204 22,461,553 8,023,403 7,348,481 7,961,316 15,626,455 13,074,203 - - - - -
250,063,050 272,673,514 600,167,380 328,017,871 333,027,563 26,626,200 5,424,023 (294,302,285) 13,572,425 39,685,352 20,965,197 22,619,355 31,219,762 51,475,566 58,865,855 (16,625,921) (18,443,510) (26,732,447) (44,115,233) (51,139,125) - - - 3,426,935 -
- - 308,476,104 - -
- - - - -
- - - -
- - - - 404,808
- - - - 3,986,967
759,697 1,023,800 - 13,323,750 -
5,098,973 5,199,645 312,963,419 24,111,018 12,118,505 - - - - (2,765,896)
31,725,173$ 10,623,668 $ 18,661,134 $ 37,683,443 $ 49,037,961 $
10.0% 9.3% 3.6% 10.8% 10.7%
211
CITY OF CHULA VISTA
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
Fiscal Year Taxable Total
Ended Less: Assessed Direct Tax
June 30, Secured Unsecured Exemptions Value ¹ Rate
2014 21,922,151,025$ 555,819,631$ (831,701,747)$ 21,646,268,909$ 0.1438% 2015 23,413,030,465 542,342,957 (864,933,069) 23,090,440,353 0.1438% 2016 24,754,131,895 549,312,047 (847,445,301) 24,455,998,641 0.1438% 2017 26,210,551,258 543,505,450 (977,982,199) 25,776,074,509 0.1438% 2018 27,801,823,181 559,678,820 (1,009,910,410) 27,351,591,591 0.1438% 2019 29,390,231,110 592,221,286 (1,118,567,598) 28,863,884,798 0.1438% 2020 31,185,048,225 602,642,833 (1,191,602,603) 30,596,088,455 0.1437% 2021 33,136,962,193 641,452,322 (1,374,268,953) 32,404,145,562 0.1438% 2022 34,629,964,921 570,315,343 (1,606,360,066) 33,593,920,198 0.1438% 2023 37,345,350,471 721,184,037 (1,688,479,696) 36,378,054,812 0.1438% 1 Includes redevelopment incremental valuation.
Source: County of San Diego Property Tax Services
Valuation Report, Tax Rate by Tax Rate Area, ACAP 345B
Note:
In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum increase of 2%). With few exceptions, property is only re-assessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 212
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
CITY OF CHULA VISTA
Direct and Overlapping Property Tax
Rates (Rate per $100 of Assessed Value)
Last Ten Fiscal Years
Fiscal Year
City Direct Rates:
City basic rate 0.1438 0.1438 0.1438 0.1438 0.1438 0.1438 0.1437 0.1438 0.1438 0.1438 Overlapping Rates:
Chula Vista Elementary School District Bonds 0.0463 0.0475 0.0430 0.0432 0.0359 0.0392 0.0374 0.0646 0.0628 0.0505 Sweetwater Union High School District Bonds 0.0582 0.0541 0.0517 0.0516 0.0516 0.0528 0.0516 0.0488 0.0461 0.0691 Southwestern Community College Bonds 0.0368 0.0358 0.0396 0.0386 0.0498 0.0467 0.0448 0.0279 0.0485 0.0422 MWD D/S Remainder of SDCWA 15019999 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 0.0035 County of San Diego* 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Total Overlapping Rates 1.1448 1.1409 1.1378 1.1369 1.1408 1.1422 1.1373 1.1448 1.1609 1.1653 *Breakdown of the County of San Diego 1.00 Rate:
County General
Gen Elem Chula Vista
High Sweetwater Union
Southwestern Community College
County School Service
County School Service - Capital Outlay
Childrens Institutions Tuition
Regional Occupational Centers
Chula Vista Project (19/84601)
Chula Vista Project (19/84602)
Educational Revenue Augmentation Fund
Chula Vista City
South Bay Irrigation
CWA South Bay Irrigation
San Diego Unified Port
Total
Source: County of San Diego Property Tax Services and ACAP 345B
0.00376946
Note:
In 1978, California voters passed Proposition 13 which sets the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of school bonds and other debt service. Overlapping rates may vary by tax rate area. The data listed in this table is representative of tax rate area 001001.
0.18823068
-
1.00000000
0.00161434
0.00483027
0.00019695
0.00039390
0.14676995
0.14375071
-
0.15920355
0.29103670
0.05072194
0.00757296
0.00190859
213
CITY OF CHULA VISTA
Principal Property Tax Payers
Current Year and Nine Years Ago
Percent of Percent of
Total City Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
Rohr Inc. 208,196,329 1 0.57% 252,188,020$ 1 1.17% John Hancock Life Insurance Co USA 161,181,354.00 2 0.44% - - - GGP Otay Ranch LP 142,213,758 3 0.39% - - - R-12 B LLC 136,761,342 4 0.38% - - -
Chula Vista Apartments LLC 134,693,743 5 0.37% - - - Regulo Place Apartments Invest 125,225,243 6 0.34% 92,415,852 4 0.43% Homefed Otay Land II LLC 119,654,541 7 0.33% - - - Village of Escaya Apartments LLC 117,558,319 8 0.32% - - - Sunbow Partners LP 104,098,342 9 0.29% - - - N M Pulse LLC 104,021,582 10 0.29% - - -
JPB Development - - - 226,747,987 2 1.05% EQR Teresina LP - - - 137,976,588 3 0.64% Chula Vista Center LLC - - - 70,554,229 5 0.33% Camden USA Inc - - - 65,411,407 6 0.30% Wal-Mart Stores Inc - - - 51,681,393 7 0.24% Bre Properties Inc. - - - 51,652,307 8 0.24% S S B T L C R E V LLC - - - 51,485,601 9 0.24% Costco Wholesale Corp - - - 44,653,537 10 0.21% Total 1,353,604,553$ 3.72% 1,044,766,921$ 4.85% Sources: MuniServices, LLC, an Avenu Insights & Analytics Company HdL, Coren & Cone
County of San Diego Property Tax Services PT Base Tab Taxable Assessed Value for FYE 2023 2014
214
CITY OF CHULA VISTA
Property Tax Levies and Collections
Last Ten Fiscal Years
Fiscal Taxes Levied Collections in
Year Ended for the Percent Subsequent Percent
June 30, Fiscal Year 1 Amount of Levy Years 2 Amount of Levy 2014 26,063,753$ 25,758,225$ 98.83% 39,776$ 25,798,000$ 98.98% 2015 27,726,666 27,398,740 98.82% 36,404 27,435,143 98.95% 2016 29,083,269 28,800,156 99.03% 68,973 28,869,128 99.26% 2017 30,632,668 30,388,650 99.20% 49,984 30,438,634 99.37% 2018 32,518,946 32,206,343 99.04% 58,329 32,264,672 99.22% 2019 34,198,598 33,877,270 99.06% 6,562 33,883,832 99.08% 2020 36,202,585 35,677,358 98.55% 80,701 35,758,059 98.77% 2021 38,360,550 37,854,693 98.68% 211,814 38,066,507 99.23% 2022 39,703,800 39,278,153 98.93% 158,717 39,436,870 99.33% 2023 42,826,740 42,399,453 99.00% (75,775) 42,323,678 98.83% 1 Levy amounts do not include supplemental taxes.
2 Collection amounts represent delinquencies collected for all prior years during the current tax year.
Total delinquent collections are reduced by any refunds processed from prior year tax collections.
Source: County of San Diego Property Tax Services ACAP234A 1% Collected within the
Fiscal Year of Levy Total Collections to Date
215
CITY OF CHULA VISTA
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Fiscal Year Pension Certificates Total
Ended Obligation of Capital Financed Governmental
June 30, Bonds Loans Participation Leases 2 Leases 2 Purchases 2 SBITA 3 Activities
2014 -$ 16,319,311 $ 121,650,000$ 2,047,312$ -$ -$ -$ 140,016,623 $ 2015 - 15,455,642 117,590,000 2,393,674 - - - 135,439,316 2016 - 16,205,773 111,195,000 2,467,714 - - - 129,868,487 2017 - 42,581,074 81,610,000 3,279,703 - - - 127,470,777 2018 - 117,927,392 78,260,000 5,125,643 - - - 201,313,035 2019 - 108,811,346 74,770,000 5,243,991 - - - 188,825,337 2020 - 99,253,322 71,110,000 5,188,939 - - - 175,552,261 2021 311,272,126 89,342,072 67,250,000 6,497,094 - - - 474,361,292 2022* 316,587,171 82,444,480 63,205,000 - 694,262 4,800,982 - 467,731,895 2023 308,481,721 15,053,436 114,230,000 - 442,467 7,911,814 1,283,006 447,402,444 1 These ratios are calculated using personal income and population for the prior calendar year. 2 GASB Statement No. 87, Leases implementation in FY2022. 3 GASB Statement No. 96, Subscription-Based Information Technology Arrangement (SBITA) implementation in FY2023. ** SANDAG's estimates for FY2022 and 2023 are not available.
Note: Details regarding the City's outstanding debt can be found in the notes to basic financial statements.
Source: San Diego Association of Governments (SANDAG)
City Finance Department
Governmental Activities
* The Pension Obligation Bonds balance was reallocated between Governmental Activities and Business-Type Activities due to changes in accounting estimates. 216
Pension Total Total Percentage Debt
Obligation Capital Financed Bus-Type Primary of Personal Per Bonds Leases 2 Leases 2 Purchases 2 SBITA 3
Activities Government Income 1 Capita 1
-$ -$ -$ -$ -$ -$ 140,016,623$ 1.09% 538$
- - - - - - 135,439,316 0.99% 516
- - - - - - 129,868,487 0.97% 492
- - - - - - 127,470,777 0.88% 478
- - - - - - 201,313,035 1.46% 750
- - - - - - 188,825,337 1.29% 696
- 10,858 - - - 10,858 175,563,119 1.13% 642 38,752,874 4,500,499 - - - 43,253,373 517,614,665 2.85% 1,728 26,932,829 - 184,617 3,630,290 - 30,747,736 498,479,631 n/a ** 1,690 26,243,279 - - 2,736,251 487,080 29,466,610 476,869,054 n/a** n/a** Business-Type Activities
217
CITY OF CHULA VISTA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
Fiscal Year Pension Percent of
Ended Obligation Assessed Per
June 30, Bonds Total Value 1
Capita
2014 -$ -$ 0.00% -$
2015 - - 0.00% -
2016 - - 0.00% -
2017 - - 0.00% -
2018 - - 0.00% -
2019 - - 0.00% -
2020 - - 0.00% -
2021 350,025,000 350,025,000 1.08% 1,275
2022 343,520,000 343,520,000 1.02% 1,241
2023 334,725,000 334,725,000 0.92% n/a *
* Per Capita estimate from SANDAG for FY2023 is not available.
Source: San Diego Association of Governments (SANDAG)
City Finance Department
Outstanding General Bonded Debt
General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds.
1 Assessed value has been used because the actual value of taxable property is not readily available in the State of California.
218
CITY OF CHULA VISTA
Direct and Overlapping Debt
June 30, 2023
2022-23 Assessed Valuation: 36,378,054,812$
Total Debt City's Share of Debt
OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2023 % Applicable 1 6/30/2023
Metropolitan Water District 19,215,000$ 0.999% 191,958$ Southwestern Community College District 758,359,345 50.549% 383,343,065 Sweetwater Union High School District 617,301,738 59.883% 369,658,800 Chula Vista City School District 109,173,285 87.995% 96,067,032 Chula Vista City School District Schools Facilities Improvement District No. 1 76,540,000 80.403% 61,540,456 National School District 35,574,000 3.681% 1,309,479
City of Chula Vista Community Facilities Districts 119,135,000 100.000% 119,135,000 Sweetwater Union High School District Community Facilities District No. 1 11,724,715 100.000% 11,724,715 Sweetwater Union High School District Community Facilities District No. 2 69,392 100.000% 69,392 Sweetwater Union High School District Community Facilities District No. 3 3,734,157 100.000% 3,734,157 Sweetwater Union High School District Community Facilities District No. 4 1,982,009 100.000% 1,982,009 Sweetwater Union High School District Community Facilities District No. 5 988,836 68.799% 680,309 Sweetwater Union High School District Community Facilities District No. 6 4,345,674 100.000% 4,345,674 Sweetwater Union High School District Community Facilities District No. 10 2,775,680 21.811% 605,404 Sweetwater Union High School District Community Facilities District No. 11 2,892,779 100.000% 2,892,779 Sweetwater Union High School District Community Facilities District No. 12 1,305,437 100.000% 1,305,437 Sweetwater Union High School District Community Facilities District No. 13 1,669,745 100.000% 1,669,745 Sweetwater Union High School District Community Facilities District No. 14 3,096,618 100.000% 3,096,618 Sweetwater Union High School District Community Facilities District No. 15 1,812,866 100.000% 1,812,866 Sweetwater Union High School District Community Facilities District No. 16 1,934,302 100.000% 1,934,302 Sweetwater Union High School District Community Facilities District No. 17 2,983,856 100.000% 2,983,856 Sweetwater Union High School District Community Facilities District No. 18 69,392 100.000% 69,392 City of Chula Vista 1915 Act Bonds 2,560,000 100.000% 2,560,000 California Municipal Financing Authoring Community Facilities District No. 2021-11 39,380,000 100.000% 39,380,000 California Statewide Communities Development Authority 1915 Act Bonds 422,252 100.000% 422,252 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 1,112,514,697$ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations 229,680,000$ 5.538% 12,719,678$ San Diego County Pension Obligation Bonds 277,990,000 5.538% 15,395,086 San Diego County Superintendent of Schools Obligations 6,935,000 5.538% 384,060 Southwestern Community College District Certificates of Participation 260,000 50.549% 1 131,427 Sweetwater Union High School District General Fund Obligations 770,000 59.883% 461,099 Chula Vista City School District Certificates of Participation 179,945,000 87.995% 158,342,603 City of Chula Vista General Fund Obligations 138,920,723 100.000% 138,920,723 2 City of Chula Vista Pension Obligation Bonds 308,481,721 100.000% 308,481,721 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 634,836,397$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 19,010,000$ 99.689% 18,950,879$ TOTAL DIRECT DEBT 447,402,444$
TOTAL OVERLAPPING DEBT 1,318,899,529
COMBINED TOTAL DEBT 1,766,301,973$ 3
1 2
3 Ratios to 2022-23 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 3.06%
Total Direct Debt ($447,402,444) 1.23%
Combined Total Debt 4.86%
Ratios to Redevelopment Successor Agency Incremental Valuation ($2,177,478,698):
Total Overlapping Tax Increment Debt 0.87%
Sources: California Municipal Statistics, Inc.
City Finance Department
Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue. Qualified Zone Academy Bonds are included based on principal due at maturity.
The percentage of overlapping debt applicable to the city is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the district's total taxable assessed value.
Includes Certificates of Participation, Lease Revenue Bonds, Loans, Notes, and Capital Leases. 219
2014 2015 2016 2017 2018
21,646,269$ 23,090,440$ 24,455,999$ 25,776,075$ 27,351,592$
25% 25% 25% 25% 25%
5,411,567 5,772,610 6,114,000 6,444,019 6,837,898 15% 15% 15% 15% 15%
811,735 865,892 917,100 966,603 1,025,685
- - - - -
811,735$ 865,892 $ 917,100 $ 966,603 $ 1,025,685 $
CITY OF CHULA VISTA
Legal Debt Margin Information
(Dollars in Thousands)
Last Ten Fiscal Years
Fiscal Year
Assessed valuation
Conversion percentage
Adjusted assessed valuation Debt
limit percentage
Debt limit
Total net debt applicable to limit:
Pension obligation bonds
Legal debt margin
Total debt applicable to the limit as a
percentage of debt limit
0.0% 0.0% 0.0% 0.0% 0.0%
Note:
Sources: City Finance Department
County of San Diego Property Tax Services
The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the state.
220
2019 2020 2021 2022 2023
28,863,885$ 30,596,088$ 32,404,146$ 33,593,920$ 36,378,055$ 25% 25% 25% 25% 25%
7,215,971 7,649,022 8,101,036 8,398,480 9,094,514 15% 15% 15% 15% 15%
1,082,396 1,147,353 1,215,155 1,259,772 1,364,177 - - 350,025 343,520 334,774
1,082,396$ 1,147,353 $ 865,130 $ 916,252 $ 1,029,403 $
0.0% 0.0% 28.8% 27.3% 24.5%
221
CITY OF CHULA VISTA
Pledged-Revenue Coverage Last Ten
Fiscal Years
Note:
Source: City Finance Department
The City does not have debt in the last ten fiscal years with this requirement. Details regarding the City's outstanding debt can be found in the notes to basic financial statements. 222
CITY OF CHULA VISTA
Demographic and Economic Statistics
Last Ten Calendar Years
% of S.D. % Change Avg. % High % Bachelor's Personal Per Capita Total County from Previous Median Household School Degree or % Below Unemployment Income Personal Year Population 1 Population 1 Year 1 Age 2 Size 1 Graduate 3 Higher 3 Poverty 3 Rate 4 (in thousands) 5 Income 5 2014 260,177 8.0% 1.5% 32.9 3.29 80.4% 27.8% 12.8% 8.20% 12,819,059 $ 49,271 $ 2015 262,484 8.0% 0.9% 33.0 3.30 82.3% 29.8% 10.6% 6.60% 13,615,626 51,872 2016 264,046 8.0% 0.6% 33.0 3.30 80.1% 27.4% 10.5% 5.2% 13,358,859 50,593 2017 266,427 8.1% 0.9% 33.1 3.30 80.9% 28.1% 11.5% 4.4% 14,432,090 54,169 2018 268,588 8.1% 0.8% 33.1 3.29 85.5% 27.4% 8.4% 3.7% 13,834,485 51,508 2019 271,362 8.1% 1.0% 33.1 3.27 83.2% 29.2% 8.7% 3.60% 14,606,180 53,825 2020 273,384 8.2% 0.7% 33.1 3.25 83.8% 29.2% 9.5% 10.70% 15,598,460 57,057 2021 274,449 8.3% 0.4% 32.9 3.23 82.6% 33.0% 8.9% 7.5% 16,658,152 60,482 2022 * 276,785 8.4% 0.1% 37.2 3.22 n/a n/a n/a 3.9% n/a n/a 2023 * n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Source:
¹ California Department of Finance, "January Population and Housing Estimates" Educational Attainment
Data compiled by SANDAG Service Bureau using the following sources:
BEA Personal Income definition: "Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses." ² SANDAG Estimates, Vintage 2021 (2011-2021)
³ American Community Survey (ACS) 1-Year Estimates, Tables B15003 (Educational Attainment) and B17001 (Poverty) ⁴ California Employment Development Department (EDD), Local Area Unemployment Statistics (LAUS), Annual Average ⁵ U.S. Bureau of Economic Analysis (BEA), Regional Economic Accounts "Local Area Personal Income Accounts," Table CA5N; ACS 1-Year Estimates, Table B19301; Bureau of Labor Statistics (BLS), retrieved from FRED, Chained Consumer Price Index (CPI), "Series CUUSA424SA0." Personal Income and PCPI of 2022 is not available yet.
* SANDAG estimates for FY2022 and 2023 are not available.
Note: Year-to-year variation for Educational Attainment and Poverty are the result of both actual change and sampling error. Per Capita Personal Income (PCPI) is the share of the jurisdiction's Per Capita Income to the region's based on the ACS 1-Year Estimates, Table B19301, multiplied by the region's PCPI from BEA.
Personal Income is the product of PCPI and Total Population. Dollar values are inflation-adjusted to 2021 dollars. 223
CITY OF CHULA VISTA
Principal Employers
Current Year and Nine Years Ago
Percent of Percent of
Number of Total Number of Total
Employer Employees Rank Employment Employees Rank Employment Sweetwater Union High School District 3,993 1 6.14% 4,096 1 6.92% Chula Vista Elementary School District 3,776 2 5.81% 2,803 2 4.73% Sharp Chula Vista Medical Center 2,823 3 4.34% 1,823 4 3.08% Southwestern Community College 1,792 4 2.76% 1,699 5 2.87% Wal-Mart 1,413 5 2.17% 1,239 6 2.09%
City of Chula Vista 1,398 6 2.15% 1,154 7 1.95%
Rohr Inc./Goodrich Aerospace 1,307 7 2.01% 2,468 3 4.17% Scripps Mercy Hospital Chula Vista 1,073 8 1.65% 1,132 8 1.91% Costco Wholesale 707 9 1.09% - - -
Transdev Services 602 10 0.93% - - -
Target Corporation - - - 659 9 1.11%
24 Hour Fitness - - - 568 10 0.96%
Note:
"Total Employment" as used above represents the total employment of all employers located within City limits.
Per State Employment Development Department's CY2022 Quarter 4 average, this amounts to 65,042 employees in current FY.
Sources: State Employment Development Department
City Finance Department
Sweetwater Union High School District
Chula Vista Elementary School District
Southwestern Community College
2023 2014
224
CITY OF CHULA VISTA
Full-time and Part-time City
Employees by Function
Last Ten Fiscal Years
Fiscal Year 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 General Government 312 288 205 210 198 160 160 172 165 189 Public Safety 425 469 470 474 492 527 554 620 642 656 Public Works/Engr 161 161 241 228 228 184 180 189 185 251 Parks and Recreation 130 161 176 153 158 229 69 137 192 164 Library 77 88 70 77 73 74 24 39 53 66 Development Services 49 49 57 55 58 73 71 69 71 72 Total 1,154 1,216 1,219 1,197 1,207 1,247 1,058 1,226 1,308 1,398 Source: City Finance Department
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226
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
CITY OF CHULA VISTA
Capital Asset Statistics
by Function
Last Ten Fiscal Years
Fiscal Year
Police:
Stations 1 1 1 1 1 1 1 1 1 1 Fire:
Fire stations 9 9 9 9 9 9 10 10 10 10 Public works:
Streets (miles) 433.9 433.9 433.9 433.9 434.2 434.2 445.2 445.2 445.2 447.0 Streetlights ³ 9,069 9,069 9,144 9,282 9,539 9,787 9,818 9,828 9,921 9,952 Traffic signals ³ 273 273 275 275 282 288 294 301 303 315 Parks and recreation:
Parks (acreage) 1 527.7 557.2 557.2 708.0 660.0 660.0 704.0 716.9 722.0 560.0 Recreation facilities 11 11 11 11 11 11 11 11 11 11 Library:
Libraries 3 3 3 3 3 3 3 3 3 3 Sewer:
Sewer pipes (miles) ² 511.3 514.3 514.6 514.6 514.6 514.6 516.8 517.0 522.4 527.9 Storm drains (miles) ² 255.2 263.2 266.2 269.6 272.4 273.8 280.6 282.5 307.1 316.7 Maximum daily treatment capacity 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 20.9 (millions of gallons)
1 Includes community, neighborhood, special purpose, mini, urban, and privately maintained public parks within City Boundaries. 2 Updated Sewer: Sewer Pipes and Storm Drains (miles) per GASB 34 in FY2018. 3 Updated Public Works: Streetlights and Traffic Signals per GASB 34 in FY2020.
Source: City of Chula Vista
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228
CITY OF
CHULA VISTA
1611 E. Fourth Street, Suite 200
Santa Ana, CA 92701
(714) 569-1000
203 N. Brea Blvd, Suite 203
Brea, CA 92821
(714) 672-0022
21 Waterway Avenue, Suite 30089
The Woodlands, TX 77380
(936) 828-4587
2151 River Plaza Dr., Suite 150
Sacramento, CA 95833
(916) 503-9691
24422 Avenida de la Carlota, Suite 275
Laguna Hills, CA 92653
(949) 829-8299
www.lslcpas.com
INDEPENDENT AUDITORS’ REPORT
ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the Hono
rable Mayor and Members of the City Council
City of Chula
Vista, California
We have audited, in accordance with the auditing standards gene rally 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, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregat e remaining fund information of the City of Chula Vista, California (the “City”), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’ s basic financial statements, and have issued our report thereon dated December 28, 2023.
Report on In
ternal Control over Financial Reporting
In planning and performing our audit of the financial statement s, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allo w management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements, on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely b asis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less s evere than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal contr ol that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and ma terial effect on the financial statements.
However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 229
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I I I I
To the Honorable Mayor and Members of the City Council
City of Chula Vista, California
Purpose of This Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the e ffectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s inter nal control and compliance. Acco rdingly, this communication is not suitable for any other purpose.
Brea, California
December 28, 2023
230
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