FISCAL YEAR ENDED
June 30, 2024
CITY OF
CHULA VISTA
CALIFORNIA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
Annual Comprehensive
Financial Report
For The Fiscal Year Ended
June 30, 2024
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
Rachel Morineau
City Manager
Maria Kachadoorian
CITY OF CHULA VISTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS
INTRODUCTORY SECTION
Page
Number
Letter of Transmittal ............................................................................................................................................. i List of City Officials ........................................................................................................................................... vi Organizational Chart ........................................................................................................................................... vii Certificate of Achievement for Excellence in Financial Reporting .................................................................... viii
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 ............................................................................................................................ 27 Statement of Activities ................................................................................................................................. 28 Fund Financial Statements:
Governmental Fund Financial Statements:
Balance Sheet ....................................................................................................................................... 34 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position .................................................................................................... 37 Statement of Revenues, Expenditures and Changes in Fund Balances......................................................................................................................................... 38 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ...................................................................................................................41 Proprietary Fund Financial Statements:
Statement of Net Position ..................................................................................................................... 44 Statement of Revenues, Expenses and Changes in Fund Net Position .................................................. 46 Statement of Cash Flows ...................................................................................................................... 48 Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ..................................................................................................... 54 Statement of Changes in Fiduciary Net Position ................................................................................... 55 Notes to Basic Financial Statements ............................................................................................................. 57 Required Supplementary Information:
Budgetary Comparison Schedule by Department - General Fund ...............................................................119 Budgetary Comparison Schedule – Federal, State, and Local Grants Special Revenue Fund......................129 Budgetary Comparison Schedule - Housing Successor Agency Special Revenue Fund ..............................131 Schedule of Changes in Net Pension Liability and Related Ratios - Miscellaneous .....................................132 Schedule of Changes in Net Pension Liability and Related Ratios - Safety .................................................134 Schedule of Plan Contributions ....................................................................................................................136 Schedule of Changes in the Total OPEB Liability and Related Ratios ........................................................137 Notes to Required Supplementary Information .................................................................................................. 138
CITY OF CHULA VISTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS (CONTINUED)
FINANCIAL SECTION (Continued)
Page
Number
Supplementary Information:
Budgetary Comparison Schedule by Expense Category:
General Fund ....................................................................................................................................... 142 Federal, State, and Local Grants Special Revenue Fund ..................................................................... 144 Housing Successor Agency Special Revenue Fund ............................................................................ 145 Non-Major Governmental Funds:
Total Non-Major Governmental Funds:
Combining Balance Sheet.................................................................................................................... 147 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................. 149 Special Revenue Funds:
Combining Balance Sheet.................................................................................................................... 153 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................. 157 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................ 161 Capital Projects Funds:
Combining Balance Sheet.................................................................................................................... 178 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................. 180 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................ 182 Debt Service Funds:
Combining Balance Sheet.................................................................................................................... 189 Combining Statement of Revenues, Expenditures and Changes in Fund Balances.............................. 191 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual ................ 193 Non-Major Proprietary Funds:
Combining Statement of Net Position ................................................................................................. 198 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .............................. 200 Combining Statement of Cash Flows .................................................................................................. 202 Internal Service Funds:
Combining Statement of Net Position ................................................................................................. 206 Combining Statement of Revenues, Expenses and Changes in Fund Net Position .............................. 207 Combining Statement of Cash Flows .................................................................................................. 208 Fiduciary Funds:
Combining Statement of Fiduciary Net Position – All Custodial Funds .............................................. 210 Combining Statement of Changes in Fiduciary Net Position – All Custodial Funds ........................... 211
STATISTICAL SECTION
Net Position by Component - Last Ten Fiscal Years .................................................................................. 214 Changes in Net Position - Last Ten Fiscal Years ........................................................................................ 216 Fund Balances of Governmental Funds – Last Ten Fiscal Years ................................................................ 218 Changes in Fund Balances of Governmental Funds – Last Ten Years ....................................................... 220 Assessed Value and Estimated Actual Value of Taxable Property – Last Ten Fiscal Years .......................... 222 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years .......................................................... 223 Principal Property Taxpayers - Current Year and Nine Years Ago ............................................................. 224 Property Tax Levies and Collections - Last Ten Fiscal Years .................................................................... 225 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years ..................................................................... 226
CITY OF CHULA VISTA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
TABLE OF CONTENTS (CONTINUED)
Page
Number
STATISTICAL SECTION (Continued)
Ratios of General Bonded Debt Outstanding - Last Ten Fiscal Years ........................................................ 228 Direct and Overlapping Bonded Debt ......................................................................................................... 229 Legal Debt Margin Information - Last Ten Fiscal Years ............................................................................ 230 Pledged-Revenue Coverage - Last Ten Fiscal Years .................................................................................. 232 Full-time and Part-time City Employees by Function - Last Ten Fiscal years ............................................ 233 Demographic and Economic Statistics - Last Ten Calendar Years ............................................................. 234 Principal Employers - Current Year and Nine Years Ago .......................................................................... 235 Operating Indicators by Function - Last Ten Fiscal Years .......................................................................... 236 Capital Asset Statistics by Function - Last Ten Fiscal Years ...................................................................... 237 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 ...............................................239
December 11, 2024
Honorable Mayor, Councilmembers, and Residents of City of Chula Vista City of Chula Vista
Chula Vista, CA 91910
Letter of Transmittal
Annual Comprehensive Financial Report, For the Fiscal Year Ended June 30, 2024 To the Honorable Mayor, Councilmembers, and Residents of City of Chula Vista:
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of Chula Vista (City) for the fiscal year ended June 30, 2024. The City compiles and prepares the ACFR to provide interested parties with reliable information concerning the financial condition and results of operations for the City.
The ACFR has been prepared in accordance with generally accepted accounting principles (GAAP) in the United States of America and the financial reporting requirements prescribed by the Governmental Accounting Standards Board (GASB). The City’s management is responsible for both the accuracy of the information and the completeness and fairness of the presentation, including all disclosures. This means that the financial statements have been prepared using guidelines that would allow the user to make a meaningful comparison to the financial statements of other similar entities. All disclosures necessary to enable the reader to gain an understanding of the City’s activities have been included.
Pursuant to City Charter Section 1012, t he basic financial statements are audited by an independent certified public accounting firm. The purpose of the audit is to ensure that the financial statements present fairly, in all material respects, the financial position and the results of operations of the City.
GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a 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 ACFR for the City includes the activities of the primary government along with several "component units." A component unit is a legally separate entity for which the elected officials of the primary government are financially accountable. Component units, although they are legally 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
Industrial Development Authority, Chula Vista Public Financing Authority, Chula Vista Municipal Financing Authority, Chula Vista Housing Authority, Chula Vista Bayfront Facilities Financing Authority, and Bayfront Project Special Tax Financing District.
P
rofile of the Government
T
he City is located in San Diego County with its western border adjacent to San Diego Bay, 8 miles south of Downtown 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, who serves four -year overlapping 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.
L
ocal Economy and Prospects for the Future
C
hula 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 available from San Diego Association of Governments (SANDAG) estimates that the median household income in Chula Vista is $102,199.
T
he City of Chula Vista, with a n estimated population of 276,813, per SANDAG is the second largest community in San Diego County. SANDAG projects that the City of Chula Vista will reach a population of approximately 325,027 by the year 2050. SANDAG’s 2050 Growth Forecast indicates that the South County 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.
I
n fiscal year 2024, t he City made substantial progress on major City projects, including the Gaylord Pacific Hotel and Convention Center on the Chula Vista Bayfront and the University Innovation District in Eastern Chula Vista. The Gaylord Pacific Resort and Convention Center is anticipated to open summer of 2025 and 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 has created 3,500 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 City-owned 383 acres of the University-Innovation District in Eastern Chula Vista is intended to be used to recruit and co-locate a unique mix of academic partners in an environment different than a traditional university campus. Instead a cademic institutions, including a four -year university, will integrate 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 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. Phase one of the University Innovation District, a 168,000 square-foot office building, will include the City’s newest library and office space for higher education opportunities and is expected to open in 2025. ii
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 LTFP 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 City’s long- term fiscal health by aligning operating revenues and costs, and to maintain the City’s reserve funds according to policy thresholds . The goal of the LTFP is to match the availability of revenues against expenditures over time and update budgetary and financial plans accordingly. In summary, the LTFP 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.
Th
e LTFP anticipated moderate revenue growth from fiscal year 202 5 to fiscal year 2027. The LTFP anticipated a decrease in revenue in fiscal year 2028 due to an expiring citizen approved sales tax measure.
However, the sales tax measure was conditionally extended by citizens in fiscal year 2025 (pending certification of election results). The LTFP anticipated moderate revenue growth through fiscal year 2034.
The LTFP anticipated expenditure growth to outpace revenue growth from fiscal year 2025 to fiscal year
2027. This structural shortfall is projected for the first three years of the ten-year LTFP period. The LTFP is expected to be updated in January 2025 including the new estimates and assumptions over a 10-year period.
Res
erves
Th
e City accumulates and maintains adequate reserves to help ensure both financial stability and the ability to provide core services during difficult times. Sufficient reserves create financial stability resulting in increased credit quality and allow the City to better weather downturn in the economy and the impacts of negative events, both major and minor. The establishment of prudent financial reserves is important to ensure long- term fiscal health of the City. The City’s Citywide Reserve Policy – Fiscal Health Plan establishes reserves, reserve levels, and the use of reserves in the General Fund and other funds.
Th
e table below reflects the City’s reserve targets and amounts as of June 30, 2024.
Reserve Reserve Policy 2024 Target 2024
General Fund Reserves1
Operating Reserve 15% of the prior year's operating expenditures $ 27,283,447 $ 27,283,447 Economic Contingency
Reserve
5% of the prior year's operating expenditures
9,094,483 9,094,483
Catastrophic Event Reserve 3% of the prior year's operating expenditures 5,456,690 5,456,690 Total General Fund
Reserves
23% of the prior year's operating expenditures
$ 41,834,620 $ 41,834,620
Pension Reserve 15% of the prior year's General Fund operating expenditures $ 27,283,447 $ 27,944,980 Bond Call Reserve No minimum or maximum, purpose is to reduce outstanding City debt obligations - 2,604,950
OPEB Reserve No minimum. Maximum is equal to 75% of outstanding OPEB liability - 868,316
Sewer Service Revenue Fund
Reserves
Includes Working Capital, Rate Stabilization, Emergency, and Vehicle Replacement Reserves 22,791,469 22,791,469
iii
Measure A Fund Economic
Contingency Reserve
Minimum of 60 days of prior year's Measure A Fund operating expenditures less any budgeted debt service, no maximum reserve balance 4,340,757 4,340,757
Ambulance Transport System
Enterprise Fund Reserves
Includes Debt Obligation, Operating, Capital Replacement, Liability Insurance Reserves $ 3,091,730 $ 3,091,730 1 Calculation is based on the Adopted Budget for the General Fund B
udgetary Controls
T
he City currently adopts a single-year operating and capital budget. The provisions of these budgets are directly posted into the City's general ledger accounting system to help ensure compliance with the appropriations made by the City Council.
A
ctivities 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 control (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 within a departmental budget. Any 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 project 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 adopts amounts in the operating budget for the proprietary and internal service funds to provide a level of fiscal control.
I
nternal Controls
T
he 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 preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide 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; and (2) the valuation of cost and benefits requires estimates and judgments by management.
I
ndependent Audit
E
ach year the City has an audit performed by an independent certified public accounting firm. This year the audit was performed by the firm of Rogers, Anderson, Malody, & Scott, LLP. The auditor’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. iv
The auditors also conduct a "single audit" designed to meet the requirements of the federal Revised Single Audit Act of 1996 and the related United States Office of Management and Budget's Uniform Guidance.
The single audit is a separate report and will be issued by March, 2025.
Award
s
The G
overnment F inance Officer Association (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, 2023. This was the 24th consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, 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 Ce
rtificate of Achievement is valid 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.
Ackno
wledgments
The pr
eparation of this ACFR could not have been 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. Acknowledgement must also be given to the Mayor and City Council, along with the City Manager, for their continued interest in planning and conducting the operations of the City of Chula Vista in a responsible and progressive manner.
Res
pectfully submitted,
Sarah Schoen
Director of Finance/Treasurer
v
List of City Officials
As of June 30, 2024
City Council
John McCann Mayor
Carolina Chavez Councilmember District 1
Jose Preciado Councilmember District 2
Alonso Gonzalez Councilmember District 3
Rachel Morineau Councilmember District 4
Administration
M
aria Kachadoorian City Manager
Tiffany Allen Assistant City Manager
Courtney Chase Deputy City Manager
Matthew Little Deputy City Manager (Acting)/Director of Public Works/City Engineer Marco A. Verdugo City Attorney
Kerry K. Bigelow City Clerk
Department Heads
L
aura Black Director of Development Services
Vacant Director of Engineering
Harry Muns Fire Chief
Sarah Schoen Director of Finance/Treasurer
Stacey Kurz Director of Housing & Homeless Services
Tanya Tomlinson Director of Human Resources & Risk Management Jose Cisneros Director of Information Technology Services Joy Whatley Director of Library Services
Frank Carson Director of Parks and Recreation
Roxana Kennedy Chief of Police
vi
Organizational Chart
As of June 30, 2024
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
Parks &
Recreation
Information
Technology
Housing &
Homeless Services
Animal Services
Economic
Development
Finance
Library
Deputy City
Manager
Human Resources &
Risk Management
Engineering
Public Works
vii
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, 2023
Executive Director/CEO
viii
735 E. Carneg ie Dr . Suit e I 00
San Bernardino . CA 92408
909 889 0871 T
909 889 5361 F
ramscpa . net
PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)
MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
A nny Gonzalez, CPA
MEMBERS
Amencan lnsutuce of
Certified Public Accountants
PCPS The A/CPA Alliance
(01 CPA Fi,ms
Governmental Audit
Q11C1/1ty Cenre,
Califot nia Society of
Certified Public Accountants
•
Proud Member of
AlliottGlobalAlliance~
ROGERS , ANDERSON , MALODY & SCOTT , LLP
CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STAB ILITY . ACCURACY. TRUST.
Independent
Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Chula Vista
Chula Vista, California
Report on the Audit of the Financial Statements
Opinions
We have audited the 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 (the City), as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of City and to meet our other ethical responsibilities, 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.
1 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 City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.
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 issue 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 GAAS and Government Auditing Standards will always detect a material misstatement 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 GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism 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 those risks.
Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal 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 opinio
n is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant a
ccounting 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, co nsidered in the aggregate, that raise su
bstantial doubt about 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. 2 Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis and budgetary comparison information, as listed in the table of contents, be 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 certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
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 combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. 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 financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the accompanying 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/annual comprehensive financial report (ACFR). 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.
3 Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards , we have also issued our report dated December 11, 2024 on our consideration of City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance.
San Bernardino, CA
December 11, 2024
4 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
The City of Chula Vista (City) offers readers this narrative overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2024. 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 fol
lowing outlines financial highlights for the year:
1. At June 30, 2024 the assets and deferred outflows of the City exceeded its liabilities and deferred inflows by $2,031 million (net position). Total net position consisted of net investment in capital assets of $1,611.3 million, restricted net position of $345.2 million, and unrestricted net position of $74.5 million.
2. Total unrestricted net position for governmental activities increased by $31.7 million from the prior fiscal year, a change of 26.4%, whereas unrestricted net position for business-type activities was $10.6 million higher than the previous year, a 6.9% increase.
3. The City’s total net position increased by $157.3 million or 8.4% in fiscal year 2024. The net position for governmental activities increased by a net $139.9 million or 10%, while the net position for business-type activities increased by $17.4 million or 3.6%.
4. The City’s governmental funds reported combined ending fund balances of $495.6 million, an increase of $86.5 million, or 21.1%.
5. Total Citywide liabilities decreased by $15.8 million or 2.3%. Liabilities for governmental activities decreased by $19.5 million or 3% and business-type activities increased by $3.7 million or 6.3%.
6. The City’s total long-term debt obligations for governmental activities had a net decrease of $25.7 million or 5.7%.
OVERVIEW OF FINANCIAL STATEMENTS
This disc
ussion and analysis provided here is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements 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, 2024
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 the related cash flows. Thus, revenues and expenses are reported in this statement, for some items, that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements have separate sections for three different types of activities.
These three types of activities are:
Governmental Activities – The activities in this section are mostly 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 Development 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 Non-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 financial 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 this comparison between governmental funds and 6 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
governmental activities. These reconciliations are presented on the pages immediately following each governmental fund financial statement.
As of fiscal year 2024, 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 governmental 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 functions, 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.
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.
7 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
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 budget. Required supplementary information also includes trend data for the City’s pension plans and other postemployment benefits.
Other supplementary information, including combining 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 earlier, net position may serve over time as a useful indicator of a government’s financial position.
As of June 30, 2024, the City’s total net position (governmental and business-type activities) was $2,031 million, a net increase of $157.3 million or 8.4% from the prior fiscal year. The City’s governmental activities increased by $139.9 million and business-type activities increased by $17.4 million. The following Summary of Net Position table shows the components that make up the City’s net position at June 30, 2024 and 2023.
Summary of Net Position
Fiscal Year Ended June 30
As the Summary of Net Position table illustrates, fiscal year 2024 total amount of $1,611.3 million is reported as net investment in capital assets, which represents 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 8 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
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 other sources, since the capital assets themselves cannot be used to liquidate this debt.
A portion of the City’s fiscal year 2024 net position is restricted, $345.2 million and represents resources that are subject to external restrictions on how they may be used. Restricted net position increased $57.9 million from the prior year and is mainly related to capital projects and public works (maintenance of open space districts).
Unrestricted net position represents the portion of net position that can be used to finance daily operations without constraints established by debt covenants, enabling legislation, or other legal requirements. Fiscal year 2024, unrestricted net position of $74.5 million is comprised of negative $88.5 million for governmental activities offset by positive $163 million for business-type activities. Unrestricted net position increased by $42.3 million from the prior fiscal year.
At the end of the fiscal year, the City reported positive balances for all categories of net position for the total primary government. However, 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, 2024
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. 10 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Governmental Activities
The City’s governmental activities net position increased by $139.9 million or 10%, which partially offsets the City’s negative unrestricted net position due to net pension and other post-employment benefits (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 $196.3 million in fiscal year 2024, an increase of $25.6 million or 15% 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 decrease of $6.5 million or 11.9% from the previous fiscal year mainly due to a movement of chargeable activities within functions to other revenue categories. In fiscal year 2024, the environmental services activity was moved from the community development function to the public works function, resulting in a $2.2 million increase to public works, offset by a decrease in community development. In addition, contributions from developers were moved from charges for services to capital grants and contributions, resulting in a $4.1 million decrease to community development. Changes by function in comparison to the prior fiscal year are summarized in the table below.
Charges for Services
Fiscal Year Ended June 30
11 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Operating G
rants and Contributions for governmental activities had a net increase of $5 million from the previous fiscal year mainly due to $28 million increased federal contributions from the application of American Rescue Plan Act of 2021 funds to general government, offset by $6 million decreased federal contributions from housing, health and human services programs in community development, and $17 million decreased state grant contributions to the Millenia: Cinematic Arts Academic Center and Library project (state grant contributions for this project were $7 million less than the prior fiscal year and the $10 million current fiscal year contribution is included in capital grants and contributions in fiscal year 2024).
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 $26.9 million from the previous fiscal year mainly due to $12.7 million related to contributions from developers in Community Development, $10 million in state grant contributions to the Millenia: Cinematic Arts Academic Center and Library project, $9.7 million in state grant contributions for library infrastructure renovations, $18.5 million increase from gas and transportation taxes moved to the capital grants and contributions revenue category in public works, offset by a $27 million decrease in developer contributions of capital assets in Public Works. 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
12 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
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 $266.1 million in fiscal year 2024. The largest source of general revenues received during the year for governmental activities was taxes for a total of $219.8 million, which included amounts from property taxes for $79.9 million, sales taxes for $106.9 million, and franchise taxes for $13.7 million. All taxes combined decreased a total of $5.9 million in comparison to the prior fiscal year, mainly due to a movement of gas taxes from other taxes to capital grants and contributions as these taxes fund capital projects.
The City’s General Revenues increased overall by $19.7 million when compared to the prior fiscal year.
While most of the tax revenue categories increased moderately from last year, there was a significant decrease in other taxes from the movement of gas taxes to capital grants and contributions. There was significant increase in investment income of $22.7 million in fiscal year 2024 due to interest rates improving. The significant changes in comparison to the prior fiscal year are identified in the table below.
General Revenues
Fiscal Year Ended June 30
13 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Total governmental activity type expenses were $329.6 million in fiscal year 2024. The largest expenses were incurred for General Government, Public Safety, Community Development, and Public Works. These four activities combine for 93% of all governmental 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 $495.4 million, an increase of $17.4 million or 3.6% from the prior fiscal year.
Total revenues for the business-type activities were $102.7 million, an increase of $9.9 million or 10.7% from the prior fiscal year. Total program revenues for business-type activities were $91.2 million, an increase of $10.5 million or 13.1% from prior fiscal year. The program revenues composed primarily of sewer service charges for $48.9 million, development fees for $8.6 million, golf course fees for $3.5 million, and transport enterprise fees for $23.9 million.
Total expenses for the business-type activities were $78.1 million, an increase of $10.9 million or 16.2% from the prior fiscal year. The total expenses were mainly related to sewer activities for $46.9 million, development services activities for $11.5 million, golf course activities for $3.4 million, and transport enterprise activities for $15.1 million. The net increase of $10.9 million is primarily related to increases in sewer activities of $5.9 million, development services activities of $1.4 million, and transport activities of $3.9 million.
14 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
FUND LEVEL FINANCIAL ANALYSIS
As noted e
arlier, the City uses fund accounting to ensure 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 City’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 general 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 2024, the General Fund reported $264.7 million in revenues and $219.2 million in expenditures. This resulted in revenues over expenditures in the amount of $45.5 million. After accounting for net other financing uses of $14.6 million, the fund balance for the General Fund increased by $30.9 million for the fiscal year.
Fiscal year 2024 total revenues had a net increase of $17.7 million or 7.2% from the prior fiscal year primarily due to increases in taxes of $7.9 million, uses for money and property of $6.4 million, and charges for services of $2.4 million.
Fiscal year 2024 expenditures increased by $3.9 million or 1.8% in comparison to the prior fiscal year with increases in public works of $2.2 million, public safety of $12.9 million, and general government of $2.9 million, along with decreases in community development of $3.3 million and capital outlay of $11.6 million.
Total fund balance as of June 30, 2024, was $180.8 million, composed of $205.9 million in assets offset with $19.5 million in liabilities and $5.6 million in deferred inflows of resources related to unavailable revenues and leases. Total fund balance included $3.8 million of nonspendable amounts, which represents the portion of fund balance that is not available for appropriation. Restricted fund balance totaled $28.3 million, which is restricted for pension related expenditures. Committed fund balance totaled $29.5 million, including $9.1 million committed for economic contingency, $5.5 million committed for a catastrophic event contingency, $4.3 for the Measure A economic contingency reserve, $10.6 million for pension, bond call and OPEB reserves. This portion of fund balance includes amounts that can only be used 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 $93.3 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 balance amounts to the City’s Director of Finance. The final component of total fund balance is unassigned fund balance. Unassigned fund balance totaling $25.9 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, 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. 15 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
The Fe
deral, State and Local Grants fund had total revenues of $84.2 million and expenditures of $61.8 million, resulting in revenues over expenditures in the amount of $22.4 million. Revenues were $29.5 million or 53.9% more in comparison to the prior fiscal year mainly due to the increased activities of the American Rescue Plan Act of 2021, various federal public safety grants, and increased activities in state grants for library renovations. The Federal, State and Local Grants fund balance decreased by $3.6 million for the fiscal year, after accounting for net other financing uses of $25.9 million. Total fund balance as of June 30, 2024, was $16.2 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, due to 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 2024, this fund had total revenues of $1.2 million composed primarily of investment income, property rentals and loan repayments from affordable housing projects. Total fund balance as of June 30, 2024, was $14.7 million, an increase of $1.1 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 to pay for the construction or improvement of public facilities due to City growth.
Revenues for this fund totaled $23.7 million attributable to building permit fees for new development and investment income. Expenditures totaled $18.7 million, of which, $16.1 million were capital expenditures on the Millenia: Cinematic Arts Academic Center and Library project, Traffic Signal and Transportation Development projects.
Total fund balance for the year decreased by $0.2 million or 0.2% from prior fiscal year. At June 30, 2024, fund balance in the amount of $84.1 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, 2024
Proprietary Funds
The City’s Sewer Fund is reported as a major fund on the Statement of Net Position for Proprietary Funds in the basic financial statements.
Sewer Fund – The Sewer fund is used to account for all activities related to providing 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 2024, operating revenues totaled $49.4 million, a decrease of $6 million or 10.9% from the prior fiscal year. The majority of the decrease is due to the movement of capital assets contributed by developers from the operating revenue category to the non-operating, other changes in net position category. Operating expenses totaled $46.7 million for the fiscal year, with the most significant cost related to the wastewater treatment by the City of San Diego in the amount of $30.3 million. In addition, non-operating revenues netted to $7.8 million, which included investment income of $8.1 million.
After accounting for all revenues and expenses, both operating and non-operating, transfers and other changes, restatements, the net position of the fund increased by $12.8 million from prior fiscal year, totaling $307.4 million as of June 30, 2024. Of total net position, $136 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 fund the day-to-day operations of the sewer system. Current assets totaled $163.4 million, comprised of $152.1 million in cash and investments, and $11.3 million in receivables. Total liabilities at the end of the fiscal year were $17 million, of which $3.7 million were considered current liabilities, with the remainder non-current liabilities primarily related to pension, OPEB, and bonded debt. The fund had $9.7 million of bonded debt. In addition, the fund reported deferred outflows of resources in the amount of $3.7 million and deferred inflows of resources for $0.4 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 development in the City to pay for the construction or improvement of public sewer facilities due to City growth.
Operating revenues totaled $1.1 million for the fiscal year. Operating expenses are minimal in this fund, comprised mainly of depreciation expense and administrative costs. Non-operating expenses totaled $0.2 million, which included interest expense offset by investment income.
Net position of the fund was a negative $12.5 million primarily due to an interfund loan and was comprised of $6.8 million in assets and $19.3 million in liabilities (including the interfund loan from the Sewer Fund).
Please reference Note 6 of the basic financial 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 of three divisions, Planning, Building, and Engineering, which provide direct services to property owners, developers, and the City as required for the entitlement and/or improvement of property. The services provided encompass most development activities, including land use entitlements; public infrastructure, open space, and landscape planning; public infrastructure construction, grading and building permits.
Operating revenues totaled $10.8 million and were primarily comprised of permits and fees. Operating expenses totaled $11.2 million for the year, mostly comprised of personnel service costs. Non-operating expenses totaled $0.2 million, which included interest expense offset by investment income. 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, 2024
Net position of the fund was negative $14.2 million for the fiscal year primarily due to the allocation of pension obligation bonds. Current and noncurrent assets totaled $17 million for the fiscal year. Current liabilities were $15.5 million and noncurrent liabilities were $21.6 million primarily consisting of liabilities related to bonds, notes, pension, and OPEB. In addition, the fund also reported deferred outflows of resources in the amount of $6.4 million and deferred inflows of resources for $0.5 million related to pensions and OPEB.
Chula Vista Elite Athlete Training Center (CVEATC) Fund – This fund was established to account for the contribution of the CVEATC from the US Olympic Committee in January 2017 and the CVEATC’s activities in partnership with its operator, Elite Athlete Services.
Net position decreased by $0.4 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 CVEATC in the net amount of $195 million. Current liabilities totaled $0.6 million. Net position of the fund was $194.4 million, primarily representing the City’s net investment in the facility, therefore, not available to fund the day-to-day operations of the facility.
18 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
GENERAL FUND BUDGETARY HIGHLIGHTS
Resolution Budget Amendments Expenditure
2023-083 Personnel Appropriations (Animal Care) 156,800$ 2023-127 Appropriation for Vehicle Purchases (Fire) 2,443,764 2023-141 Personnel Appropriations (City Clerk) 68,557
2023-164 Appropriation for TRF408 (Engineering) 225,000 2023-184 First Quarter Appropriations (Various) 3,506,641 2023-200 Zoll Lease Agreement (Fire) 347,662
2023-207 Measure A Personnel Appropriations (Fire) 251,737 2024-010 Measure P Appropriation 1,250,000
2024-012 Personnel Appropriations (Various) 11,647
2024-022 Measure A Drone Appropriation (Police) 231,000 2024-028 Personnel Appropriations (Various) 179,067
2024-046Second Quarter Budget Adjustments 4,490,622
2024-089 Personnel Appropriations (Police) 248,364
2024-113 Third Quarter Budget Adjustments 22,626,032
2024-220 Year-End Budget Adjustments 8,362,741
TOTAL GENERAL FUND BUDGET AMENDMENTS 44,399,634$
1 Includes eliminating entries of $4.3 million
The final amended general fund budget totaled $326.9 million including $44.4 million in budget amendments to the originally adopted budget, $35.5 million carried forward for capital improvements and encumbrances of $13.5 million, which will fund contractual obligations and outstanding purchase orders.
The budget amendments occurred as a result of staffing and organizational changes within various City departments; American Rescue Plan Act of 2021 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; adoption of labor agreements; transfers out to other funds that were approved subsequent to budget adoption. The General Fund’s budget amendments of $44.4 million are summarized as follows:
Gene ral Fund Budge t Amendments
Per Council Re solutions
as of June 30, 2024 - Unaudited
19 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Revenues – Overall budgeted revenues were $293.7 million, and actuals were $298.9 million resulting in revenues exceeding budget by $5.2 million. The significant General Fund revenue variances were the following:
Charges for Services were below budget by a total of $0.9 million, primarily due to vacant positions in the Engineering and Capital Project department and lower than expected Passport Fee revenue. Use of Money and Property revenues exceeded budget by a total of $5.6 million, primarily due to increased investment earnings.
Miscellaneous revenues were above budget by a total of $1.1 million, primarily due to reimbursements made to departments from FEMA revenues received for prior year COVID related expenditures.
Transfers In were below budget by a total of $0.5 million, primarily due to reduced transfer to the Public Liability Trust Fund and Advanced Life Support Program Fund due to reduced expenditures in those funds.
Expenditures – Overall budgeted expenditures were $326.9 million, and actuals were $292.2 million, resulting in under budget expenditures of $34.7 million. The significant General Fund expenditure variances were the following:
Capital outlay expenditures were below budget by a total of $32 million, which is due to the timing of capital outlay expenditures for multi-year capital projects. Non-capital General Fund expenditures were below budget by a total of $2.6 million. The Finance Department was under budget by $1.5 million, primarily due to timing of equipment purchased in the Measure P fund. Additionally, the Police Department was under budget by $0.6 million, and the Fire Department was under budget by $0.4 million, all primarily from decreased expenditures in the personnel and the supplies and services categories.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital
Assets
The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2024, amounts to $1,752.9 million, net of accumulated depreciation of $842.3 million. This investment in capital assets includes land, buildings, improvements, machinery and equipment, infrastructure, subscription assets, lease assets and construction in progress. Infrastructure assets 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 the City’s investment in capital assets for the current fiscal year was an increase of $61.3 million, net of accumulated depreciation. Additional information on the City’s capital assets can be found in Note 7 of the basic financial statements. 20 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
Debt Administration
Long Term Debt - At June 30, 2024, the City had $449.4 million in debt outstanding compared to $476.9 million last year, a net decrease of $27.5 million. This was primarily due to bond payable deletions in the amount of $13.9 million, a $9 million deletion for pension related debt, and $4.3 million deletions for notes/finance purchases. Most of the debt is in the form of pension obligation bonds of $325.7 million, lease revenue bonds of $47.3 million, and certificates of participation of $54.5 million. The remainder of the outstanding long-term debt is in the form of CDBG Section 108 loan, unamortized bond premium, notes payable, financed purchases, leases and subscriptions.
As of June 30, 2021, the City received an AA long-term rating for its 2021 Taxable 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 Authority 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 Assessed Valuation and Tax
According to the County of San Diego Assessors’ Office, the City’s total property assessed valuation (both secured and unsecured) for 2024 was $40,602 million. This was an increase of $2,536 million, or 6.7% over the 2023 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 2024 totaled $43.7 million, which is $2.6 million or 5.8% more than collected in the prior year.
Local Economy
Locally, the City’s fiscal outlook remains cautiously positive, demonstrated by the continued economic growth, infrastructure investments, and commercial 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 4.6% in September 2024, which is higher than the 4.2% rate recorded one year ago in September 2023. The regional unemployment rate for September 2024 remained lower than the California state’s rate of 5.3% and was higher than the national unemployment rate of 3.9%. The San Diego city unemployment rate increased from the prior year, 4.4% in September 2024 in comparison to 4.1% in September 2023.
In the UCLA Anderson Forecast from March 2024, Anderson economists profess the possibility of a recession is unlikely in the near term based on expansionary fiscal policy and a strong consumer base.
Inflation continues to come down and is projected to stabilize in 2025, with the large interest rate increases ending and small decreases on the horizon. Consumer confidence remains strong despite the reinstatement of student loan payments and an end to the significant increase in transfer payments related to the pandemic. Unemployment remains low, at 3.9%, and growth is expected to return the trend of 2.5% in 2025 and 2026. The Anderson Forecast expects a recession is an eventuality, but beyond the Forecast 21 CITY OF CHULA VISTA
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the Fiscal Year Ended June 30, 2024
period. Some risks to the Forecast are conflicts in the Middle East and Russia-Ukraine, as well as political gridlock in an election year.
The annualized growth rate for gross domestic product (GDP), a metric for estimating the size of a country’s economy, declined in the first two quarters of 2023 but increased significantly in the third quarter, by 4.9%, before ending at 3.3% in the fourth quarter. The deceleration of GDP in late 2023 reflects slowdowns in business investment, federal spending, and consumer spending. Economic growth is likely to continue to show signs of both slight expansion and slight deceleration in 2024, demonstrating a “soft landing” in avoiding an economic downturn or overheating and increasing inflation.
The Federal Open Market Committee (FOMC), part of the Federal Reserve, is committed to Congress’s mandate to promote maximum employment, stable prices, and moderate long-term interest rates. During the past two years, the FOMC increased interest rates several times, to the current 5.25 -
5.5% rate, the highest level since 2006. The FOMC signaled potential additional adjustments to the target rate range until labor market conditions improve and inflation returns to 2% for the long-term, which the FOMC admitted would take longer than expected to reach its price-stability goals. In September 2024, the FOMC chose to lower its key overnight borrowing rate by a half percentage point, or 50 basis points, amid signs that inflation was moderating, and the labor market was weaking. It is also anticipated that another 50 more basis points cut by the end of the calendar year.
Fiscal Year 2025 Budget
The City’s general fund ended the fiscal year 2024 with an unassigned fund balance of $25.9 million and a committed fund balance of $29.5 million, including $9.1 million for economic contingency, $5.5 million for catastrophic event contingency, $4.3 million for Measure A economic contingency, and $10.6 million for pension, bond call and OPEB. Assigned fund balance included $34.7 million related to capital projects funded by Measure P sales tax as well as $49.3 million related to Measure A sales tax.
In May 2024, the Chula Vista City Council adopted the fiscal year 2025 budget which provides $595.3 million in appropriations to fund all City activities. The General Fund budget total is $274.1 million. The City continues to adopt a one-year budget.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the City’s finances for all its citizens, taxpayers, customers, investors and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Chula Vista, Finance Department, 276 Fourth Avenue, Chula Vista, California 91910. 22 BASIC FINANCIAL STATEMENTS
23
24 GOVERNMENT-WIDE FINANCIAL
STATEMENTS
25
26 CITY OF CHULA VISTA
STATEMENT OF NET POSITION
JUNE 30, 2024
Governmental Business-Type
Activities Activities Total
ASSETS
Cash and investments 490,362,288$ 180,861,620$ 671,223,908$ Restricted assets:
Cash and investments 900,107 - 900,107
Cash with fiscal agent 34,485,646 - 34,485,646
Receivables (net of allowance for uncollectables):
Accounts 7,653,981 25,711,285 33,365,266
Taxes 27,034,506 - 27,034,506
Accrued interest 3,548,029 1,257,272 4,805,301
Deferred loans 65,990,605 - 65,990,605
Successor Agency 2,015,766 - 2,015,766
Leases 124,542 - 124,542
Due from other governments 6,779,598 - 6,779,598
Advances to Successor Agency of Chula Vista RDA 2,245,527 - 2,245,527 Internal balances 1,517,781 (1,517,781) -
Inventories - 60,908 60,908
Prepaid costs 729,236 45,560 774,796
Capital assets not being depreciated 703,089,402 199,642,492 902,731,894 Capital assets, net of depreciation 712,769,164 137,355,699 850,124,863 Total Assets 2,059,246,178 543,417,055 2,602,663,233
DEFERRED OUTFLOWS OF RESOURCES
Pension related 106,932,421 14,187,531 121,119,952
OPEB related 3,347,042 370,912 3,717,954
Deferred charge on refunding 3,015,873 - 3,015,873
Total Deferred Outflows of Resources 113,295,336 14,558,443 127,853,779
LIABILITIES
Accounts payable 28,466,784 4,580,394 33,047,178
Accrued liabilities 8,446,059 1,016,945 9,463,004
Retention payable 1,271,221 241,382 1,512,603
Accrued interest payable 1,613,598 60,362 1,673,960 Deposits payable 3,029,309 13,479,421 16,508,730
Unearned revenue 15,638,337 - 15,638,337
Noncurrent liabilities:
Due within one year:
Total OPEB liability 1,095,458 121,397 1,216,855
Bonds, notes, leases, subscriptions and financed purchases 24,520,889 1,920,495 26,441,384 Compensated absences 7,444,372 490,038 7,934,410
Claims and judgments 4,000,000 - 4,000,000
Due in more than one year:
Net pension liability 70,543,157 11,225,022 81,768,179 Total OPEB liability 20,090,172 2,226,352 22,316,524 Bonds, notes, leases, subscriptions and financed purchases 397,203,122 25,735,983 422,939,105 Compensated absences 2,857,436 348,685 3,206,121
Claims and judgments 36,749,504 - 36,749,504
Total Liabilities 622,969,418 61,446,476 684,415,894
DEFERRED INFLOWS OF RESOURCES
Leases related 124,542 - 124,542
Pension related 8,631,320 581,104 9,212,424
OPEB related 5,131,830 568,699 5,700,529
Total Deferred Inflows of Resources 13,887,692 1,149,803 15,037,495
NET POSITION
Net investment in capital assets 1,278,956,534 332,386,152 1,611,342,686 Restricted for:
Community development 25,483,005 - 25,483,005
Public works 89,059,168 - 89,059,168
Capital projects 162,995,375 - 162,995,375
Debt service 5,752,468 - 5,752,468
Low-mod income housing 14,741,072 - 14,741,072
Grants 16,198,530 - 16,198,530
Section 115 trust for pension 28,369,808 - 28,369,808 Other 2,639,764 - 2,639,764
Unrestricted (88,511,320) 162,993,067 74,481,747
Total Net Position 1,535,684,404$ 495,379,219$ 2,031,063,623$ Primary Government
The notes to financial statements are an integral part of this statement. 27 CITY OF CHULA VISTA
STATEMENT OF ACTIVITIES
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Operating Capital Total
Charges for Contributions Contributions Program
Expenses Services and Grants and Grants Revenues
FUNCTIONS/PROGRAMS:
Primary Government:
Governmental Activities:
General government 46,486,124$ 1,713,291$ 36,601,184$ 2,430,093$ 40,744,568$ Public safety 154,452,619 7,550,885 13,207,766 - 20,758,651 Community development 46,748,103 2,285,392 5,782,988 36,292,110 44,360,490 Public works 59,261,678 33,587,379 3,605,912 30,515,613 67,708,904 Parks and recreation 6,324,693 2,182,815 18,127 - 2,200,942 Library 4,284,441 535,093 211,523 19,735,000 20,481,616 Interest on long-term debt 12,082,375 - - - - Total Governmental Activities 329,640,033 47,854,855 59,427,500 88,972,816 196,255,171 Business-Type Activities:
Sewer Fund 46,870,622 48,861,451 - 5,292,292 54,153,743 Sewer Development Impact Fees 489,499 - 1,058,922 - 1,058,922 Development Services Fund 11,556,395 8,607,228 - - 8,607,228 CV Elite Athlete Training Ctr 501,587 - - - -
Bayfront Trolley Station 30 - - - -
Transit Fund 4,946 - - - -
Chula Vista Muni Golf Course 3,401,065 3,534,111 - - 3,534,111 Transport Enterprise 15,104,503 23,865,048 - - 23,865,048 Living Coast Discovery Center 227,229 - - - -
Total Business-Type Activities 78,155,876 84,867,838 1,058,922 5,292,292 91,219,052 Total Primary Government 407,795,909$ 132,722,693$ 60,486,422$ 94,265,108$ 287,474,223$
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
TRANSFERS
Total General Revenues and Transfers
Change in Net Position
NET POSITION - Beginning
NET POSITION - ENDING
Program Revenues
The notes to financial statements are an integral part of this statement. 28 Primary Government
Governmental Business-Type
Activities Activities Total
(5,741,556)$ -$ (5,741,556)$
(133,693,968) - (133,693,968)
(2,387,613) - (2,387,613)
8,447,226 - 8,447,226
(4,123,751) - (4,123,751)
16,197,175 - 16,197,175
(12,082,375) - (12,082,375)
(133,384,862) - (133,384,862)
- 7,283,121 7,283,121
- 569,423 569,423
- (2,949,167) (2,949,167)
- (501,587) (501,587)
- (30) (30)
- (4,946) (4,946)
- 133,046 133,046
- 8,760,545 8,760,545
- (227,229) (227,229)
- 13,063,176 13,063,176
(133,384,862) 13,063,176 (120,321,686) 79,895,724 - 79,895,724
8,345,458 - 8,345,458
106,895,750 - 106,895,750
13,709,817 - 13,709,817
2,018,879 - 2,018,879
3,607,996 - 3,607,996
552,600 - 552,600
1,217,183 - 1,217,183
3,557,417 - 3,557,417
32,189,702 8,753,432 40,943,134
14,094,288 2,730,814 16,825,102
25,291 - 25,291
7,130,765 (7,130,765) -
273,240,870 4,353,481 277,594,351
139,856,008 17,416,657 157,272,665
1,395,828,396 477,962,562 1,873,790,958
1,535,684,404$ 495,379,219$ 2,031,063,623$
Net (Expenses) Revenues and Changes in Net Position
The notes to financial statements are an integral part of this statement. 29
30 FUND FINANCIAL STATEMENTS
31
32 GOVERNMENTAL FUND FINANCIAL
STATEMENTS
33 CITY OF CHULA VISTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
Capital
Projects Fund
General
Federal, State, and
Local Grants
Housing Successor
Agency
Development
Impact Funds
ASSETS
Cash and investments 136,833,554$ 35,995,259$ 13,355,057$ 93,559,336$ Receivables:
Accounts (net of allowance for uncollectibles) 6,055,852 127,898 - 13,442 Taxes 24,861,503 195,498 - -
Accrued interest 794,499 331,586 91,542 540,945
Deferred loans (net of allowance for uncollectibles) - 24,672,840 26,083,769 5,872,689 Successor Agency 2,015,766
Leases 124,542 - - -
Due from other governments 311,930 6,123,540 - -
Due from other funds 2,617,941 - - -
Prepaid costs 225,820 43,352 - -
Advances to other funds 1,380,956 - - -
Advances to Successor Agency of Chula Vista RDA 2,245,527 - - - Restricted assets:
Cash and investments - - 900,107 -
Cash and investments with fiscal agents 28,474,564 2,669 - - Total Assets 205,942,454$ 67,492,642$ 40,430,475$ 99,986,412$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable 7,920,609$ 8,314,646$ 2$ 8,674,575$ Retentions payable 583,171 12,813 - 21,093
Accrued liabilities 7,860,946 401,621 - -
Deposits payable 1,609,318 - - -
Due to other funds - - - -
Unearned revenues 1,555,599 13,680,512 - -
Total Liabilities 19,529,643 22,409,592 2 8,695,668 Deferred Inflows of Resources:
Unavailable revenues 5,472,240 28,884,520 25,689,401 7,169,318 Related to leases 124,542 - - -
Total Deferred Inflows of Resources 5,596,782 28,884,520 25,689,401 7,169,318 Fund Balances:
Nonspendable 3,852,303 43,352 - -
Restricted 28,369,808 16,155,178 14,741,072 84,121,426 Committed 29,455,853 - - -
Assigned 93,284,726 - - -
Unassigned (deficit) 25,853,339 - - -
Total Fund Balances 180,816,029 16,198,530 14,741,072 84,121,426
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE
Special Revenue Funds
205,942,454$ 99,986,412$ 40,430,475$ 67,492,642$ The notes to financial statements are an integral part of this statement. - - -
34 CITY OF CHULA VISTA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2024
ASSETS
Cash and investments
Receivables:
Accounts (net of allowance for uncollectibles)
Taxes
Accrued interest
Deferred loans (net of allowance for uncollectibles)
Successor Agency
Leases
Due from other governments
Due from other funds
Prepaid costs
Advances to other funds
Advances to Successor Agency of Chula Vista RDA
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
Restricted
Committed
Assigned
Unassigned (deficit)
Total Fund Balances
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES, AND FUND BALANCE
Other
Governmental
Funds
Total
Governmental
Funds
197,778,781$ 477,521,987$
1,268,806 7,465,998
1,977,505 27,034,506
1,015,331 2,773,903
9,361,307 65,990,605
- 2,015,766
- 124,542
344,128 6,779,598
- 2,617,941
457,491 726,663
- 1,380,956
- 2,245,527
- 900,107
6,008,374 34,485,607
218,211,723$ 632,063,706$
3,142,873$ 28,052,705$
654,144 1,271,221
81,995 8,344,562
1,419,991 3,029,309
2,051,223 2,051,223
402,226 15,638,337
7,752,452 58,387,357
10,720,985 77,936,464
- 124,542
10,720,985 78,061,006
457,491 4,353,146
201,350,863 344,738,347
- 29,455,853
- 93,284,726
(2,070,068) 23,783,271
199,738,286 495,615,343
632,063,706$ 218,211,723$
The notes to financial statements are an integral part of this statement. 35
36 CITY OF CHULA VISTA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2024
Amounts reported for governmental activities in the statement of net position are different because:
Total fund balances - governmental funds 495,615,343$
1,415,215,533
Deferred outflows - pension related 105,817,644$
Deferred outflows - OPEB related 3,329,379
Deferred inflows - pension related (8,585,660)
Deferred inflows - OPEB related (5,104,749)
Total deferred outflows and inflows related to postemployment benefits 95,456,614 Long-term receivables 54,690,305
Development impact fees 13,108,880
Miscellaneous revenues 10,898,183
Total other long-term assets 78,697,368
10,944,785
Bonds payable (101,820,000)
Private placement notes (3,740,982)
Pension-related debt (298,404,197)
Financed purchases (6,959,783)
Leases (298,299)
Subscriptions (1,380,985)
Compensated absences (10,220,844)
Claims (40,749,504)
Total OPEB liability (21,073,832)
Net pension liability (69,661,158)
Accrued interest payable on long-term debt (1,610,302)
Total long-term liabilities (555,919,886)
Deferred amount on refunding 3,015,873
Premium on bonds payable (7,341,226)
Total premiums, discounts, and deferred items (4,325,353) Net Position of Governmental Activities 1,535,684,404$
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.
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 activities.
Capital assets used in governmental activities (less internal service fund allocations) are not financial resources and, therefore, are not reported in the funds.
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. 37 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Capital
Projects Fund
General
Federal, State, and
Local Grants
Housing Successor
Agency
Development
Impact Funds
Revenues:
Taxes 220,504,491$ -$ -$ -$
License and permits 2,256,473 - - -
Intergovernmental 1,196,151 78,401,946 - -
Charges for service 19,201,459 2,275,107 - 618,993
Use of money and property 12,201,150 3,310,635 1,103,331 4,646,134 Fines and forfeitures 1,033,217 - - -
Developer participation - - - 18,117,485
Miscellaneous 8,313,233 204,336 148,739 300,000
Total Revenues (net losses) 264,706,174 84,192,024 1,252,070 23,682,612 Expenditures:
Current:
General government 37,429,925 1,537,730 - -
Public safety 121,690,748 12,440,875 - -
Community development 4,254,696 5,267,028 96,406 745,383 Parks and recreation 5,123,577 - - -
Public works 32,397,755 3,879,924 - -
Library 3,473,974 150,633 - -
Capital outlay 12,998,280 38,405,068 - 17,044,414
Debt service:
Principal retirement 1,703,542 140,884 - 126,209
Interest and fiscal charges 120,932 7 - 798,928
Total Expenditures 219,193,429 61,822,149 96,406 18,714,934 Excess (Deficiency) Revenues over Expenditures 45,512,745 22,369,875 1,155,664 4,967,678 Other Financing Sources (Uses):
Transfers in 34,518,095 118,533 - -
Transfers out (49,318,155) (26,499,809) (5,110) (5,163,864) Subscription-based IT arrangement 230,887 447,859 - - Total Other Financing Sources (Uses) (14,569,173) (25,933,417) (5,110) (5,163,864) Net Change in Fund Balance 30,943,572 (3,563,542) 1,150,554 (196,186) 149,872,457 19,762,072 13,590,518 84,317,612 Fund Balances - Beginning Fund Balances - Ending 180,816,029$ 16,198,530$ 14,741,072$ 84,121,426$ Special Revenue Funds
The notes to financial statements are an integral part of this statement. 38 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances - Ending
Other
Governmental Funds
Total
Governmental Funds
552,600$ 221,057,091$
41,040 2,297,513
20,794,517 100,392,614
22,404,908 44,500,467
7,911,869 29,173,119
575,672 1,608,889
15,291,520 33,409,005
4,396,293 13,362,601
71,968,419 445,801,299
1,507,748 40,475,403
83,168 134,214,791
2,110,574 12,474,087
46,074 5,169,651
15,929,896 52,207,575
2 3,624,609
12,801,814 81,249,576
21,801,823 23,772,458
12,572,957 13,492,824
66,854,056 366,680,974
5,114,363 79,120,325
58,860,389 93,497,017
(5,989,085) (86,976,023)
162,332 841,078
53,033,636 7,362,072
58,147,999 86,482,397
141,590,287 409,132,946
199,738,286$ 495,615,343$
The notes to financial statements are an integral part of this statement. 39
40 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, 2024
Amounts reported for governmental activities in the statement of activities are different because:
Net change in fund balances - total governmental funds 86,482,397$ Capital outlay 80,122,941$
Depreciation expense (38,729,133)
41,393,808
2,971,231
Contribution of capital assets 11,955,097
Gain/(loss) on disposal of capital assets 25,291
11,980,388
Proceeds from leases and subscriptions (841,078)
Cancellation of private placement note 1,554,250
Principal paid on leases 154,939
Principal paid on subscriptions 652,575
Principal paid on bonds payable 12,410,000
Principal paid on pension-related debt 8,249,815
Principal paid on private placement notes 930,362
Principal paid on financed purchases 952,031
24,062,894
413,727
Accrued interest on long-term debt 199,938
Amortization of bond premiums and discounts 1,486,615
Amortization of deferred amounts on refunding (261,539) Compensated absences and claims (3,075,451)
Changes in pension liabilities and related deferred outflows and inflows of resources (23,869,763) Changes in OPEB liabilities and related deferred outflows and inflows of resources (1,928,237) (27,448,437)
Change in Net Position of Governmental Activities 139,856,008$ 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 the amount by which capital outlays exceeded depreciation expense in the current period.
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 contributions) 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. 41
42 PROPRIETARY FUND FINANCIAL
STATEMENTS
43 CITY OF CHULA VISTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
Sewer Fund
Sewer
Development
Impact Fees
Development
Services Fund
CV Elite Athlete
Training Ctr
ASSETS
Current Assets:
Cash and investments 152,056,613$ 6,512,714$ 16,454,557$ -$ Cash with fiscal agent 212 - 348 -
Receivables:
Accounts (net of allowance for uncollectibles) 10,208,400 - 13,199 9,370 Accrued interest 1,104,391 47,215 50,325 -
Prepaid costs 13,993 - 23,276 -
Inventories - - - -
Total Current Assets 163,383,609 6,559,929 16,541,705 9,370 Noncurrent Assets:
Advances to other funds 19,284,732 - - -
Capital assets:
Land - - - 180,677,144
Construction in progress 18,249,122 117,567 - - Buildings and structures - - - 17,027,588
Machinery and equipment 9,765,635 - 297,601 -
Infrastructure 274,189,057 121,387 - -
Lease asset 5,350 - - -
Subscription asset 16,448 - 765,616 -
Less accumulated depreciation/amortization (163,683,688) (27,359) (625,685) (2,698,872) Total Noncurrent Assets 157,826,656 211,595 437,532 195,005,860 Total Assets 321,210,265 6,771,524 16,979,237 195,015,230
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows 3,471,377 - 6,255,976 -
OPEB deferred outflows 194,287 - 158,962 -
Total Deferred Outflows of Resources 3,665,664 - 6,414,938 -
LIABILITIES
Current Liabilities:
Accounts payable 2,715,726 - 679,430 -
Accrued liabilities 197,117 - 308,552 -
Accrued interest payable 17,966 - 34,741 -
Compensated absences 204,193 - 151,421 -
Retention payable 184,578 - 56,804 -
Deposits payable - - 13,479,421 -
Due to other funds - - - 566,718
Total OPEB liability 63,589 - 52,027 -
Bonds, notes, subscriptions, and financed purchases 276,686 - 731,756 - Total Current Liabilities 3,659,855 - 15,494,152 566,718 Noncurrent Liabilities:
Advances from other funds - 19,284,732 - -
Compensated absences 63,900 - 261,660 -
Net pension liability 2,746,516 - 4,949,661 -
Total OPEB liability 1,166,184 - 954,151 -
Bonds, notes, subscriptions, and financed purchases 9,398,946 - 15,415,840 - Total Noncurrent Liabilities 13,375,546 19,284,732 21,581,312 - Total Liabilities 17,035,401 19,284,732 37,075,464 566,718
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows 142,183 - 256,237 -
OPEB deferred inflows 297,890 - 243,728 -
Total Deferred Inflows of Resources 440,073 - 499,965 -
NET POSITION (DEFICIT)
Net investment in capital assets 136,046,061 211,595 154,606 195,005,860 Unrestricted 171,354,394 (12,724,803) (14,335,860) (557,348) Total Net Position (Deficit) 307,400,455$ (12,513,208)$ (14,181,254)$ 194,448,512$ Business-Type Activities - Enteprise Funds
The notes to financial statements are an integral part of this statement. 44 CITY OF CHULA VISTA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2024
ASSETS
Current Assets:
Cash and investments
Cash with fiscal agent
Receivables:
Accounts (net of allowance for uncollectibles)
Accrued interest
Prepaid costs
Inventories
Total Current Assets
Noncurrent Assets:
Advances to other funds
Capital assets:
Land
Construction in progress
Buildings and structures
Machinery and equipment
Infrastructure
Lease asset
Subscription asset
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
Compensated absences
Retention payable
Deposits payable
Due to other funds
Total OPEB liability
Bonds, notes, subscriptions, and financed purchases
Total Current Liabilities
Noncurrent Liabilities:
Advances from other funds
Compensated absences
Net pension liability
Total 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
4,745,115$ 179,768,999$ 12,840,301$
1,092,061 1,092,621 39
15,480,316 25,711,285 187,983
55,341 1,257,272 13,222
8,291 45,560 2,573
60,908 60,908 -
21,442,032 207,936,645 13,044,118
- 19,284,732 -
598,659 181,275,803 -
- 18,366,689 -
762,731 17,790,319 -
5,400,014 15,463,250 4,576,616
- 274,310,444 -
- 5,350 -
- 782,064 -
(3,960,124) (170,995,728) (3,933,583)
2,801,280 356,282,923 643,033
24,243,312 564,219,568 13,687,151
4,460,178 14,187,531 1,114,777
17,663 370,912 17,663
4,477,841 14,558,443 1,132,440
1,185,238 4,580,394 414,079
511,276 1,016,945 101,497
7,655 60,362 3,296
134,424 490,038 50,123
- 241,382 -
- 13,479,421 -
- 566,718 -
5,781 121,397 5,781
912,053 1,920,495 50,317
2,756,427 22,477,152 625,093
1,380,956 20,665,688 -
23,125 348,685 30,841
3,528,845 11,225,022 881,999
106,017 2,226,352 106,017
921,197 25,735,983 1,728,222
5,960,140 60,201,730 2,747,079
8,716,567 82,678,882 3,372,172
182,684 581,104 45,660
27,081 568,699 27,081
209,765 1,149,803 72,741
968,030 332,386,152 643,033
18,826,791 162,563,174 10,731,645
19,794,821$ 494,949,326 11,374,678$
429,893
495,379,219$
Business-Type Activities -
Enteprise Funds
The notes to financial statements are an integral part of this statement. 45 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
Sewer Fund
Sewer
Development
Impact Fees
Development
Services Fund
CV Elite Athlete
Training Ctr
OPERATING REVENUES
Sales and service charges 48,861,451$ -$ 8,607,228$ -$ Interdepartmental charges - - - -
Developer participation - 1,058,922 - -
Other 499,481 - 2,230,857 -
Total Operating Revenues 49,360,932 1,058,922 10,838,085 -
OPERATING EXPENSES
Administration and general 40,200,507 20,718 10,803,917 164,441 Depreciation/amortization expense 6,450,871 3,041 348,075 337,146 Total Operating Expenses 46,651,378 23,759 11,151,992 501,587 Operating Income (Loss) 2,709,554 1,035,163 (313,907) (501,587)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss) 8,063,076 301,758 132,694 -
Interest expense (228,115) (465,740) (381,849) -
Total Nonoperating Revenues (Expenses) 7,834,961 (163,982) (249,155) - Income (Loss) Before Transfers 10,544,515 871,181 (563,062) (501,587) Capital contributions 5,292,292 - - -
Transfers in 745,628 - 1,003,694 132,940
Transfers out (3,737,730) (2,408) (2,544,769) (54,226)
Change in Net Position 12,844,705 868,773 (2,104,137) (422,873) NET POSITION (DEFICIT) - Beginning as previously reported 293,911,415 (12,737,646) (12,077,117) 194,871,385 Error correction 644,335 (644,335) - -
Net Position - Beginning, as Restated 294,555,750 (13,381,981) (12,077,117) 194,871,385 NET POSITION (DEFICIT) - ENDING 307,400,455$ (12,513,208)$ (14,181,254)$ 194,448,512$ Business-Type Activities - Enterprise Funds
The notes to financial statements are an integral part of this statement. 46 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
OPERATING REVENUES
Sales and service charges
Interdepartmental charges
Developer participation
Other
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
Capital contributions
Transfers in
Transfers out
Change in Net Position
NET POSITION (DEFICIT) - Beginning as previously reported Error correction
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
27,399,159$ 84,867,838$ 113,081$
- - 10,449,115
- 1,058,922 -
476 2,730,814 475,062
27,399,635 88,657,574 11,037,258
17,613,314 68,802,897 11,037,183
1,062,489 8,201,622 226,272
18,675,803 77,004,519 11,263,455
8,723,832 11,653,055 (226,197)
255,904 8,753,432 58,110
(61,687) (1,137,391) (41,922)
194,217 7,616,041 16,188
8,918,049 19,269,096 (210,009)
- 5,292,292 -
330,761 2,213,023 706,124
(3,004,655) (9,343,788) (96,354)
6,244,155 17,430,623 399,761
13,550,666 477,518,703 10,974,917
- - -
13,550,666 477,518,703 10,974,917
19,794,821$ 494,949,326 11,374,678$
(13,966)
494,935,360$
Business-Type Activities -
Enterprise Funds
The notes to financial statements are an integral part of this statement. 47 CITY OF CHULA VISTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
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 49,600,333$ 1,058,922$ 10,805,958$ -$ Cash received from interfund service provided - - - -
Cash paid to suppliers for goods and services (31,834,574) (20,718) (1,430,790) (193,627) Cash paid to employees for services (4,680,130) - (7,527,660) - Cash received from others 653,722 (644,335) 157 - Net Cash Provided by (Used for)
Operating Activities 13,739,351 393,869 1,847,665 (193,627)
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in 895,628 - 1,003,694 132,940
Cash transfers out (3,887,730) (2,408) (2,544,769) (54,226) Interest paid on interfund borrowings - (465,740) - -
Repayment of interfund borrowings (1,110,076) 1,110,076 - 114,913 Principal payments on pension bonds (311,499) - (631,724) - Interest paid on pension bonds (228,334) - (385,311) - Net Cash Provided by (Used for)
Non-Capital Financing Activities (4,642,011) 641,928 (2,558,110) 193,627
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (10,261,386) (27,225) (36,702) - Principal paid on capital debt - - - -
Interest paid on capital debt - - - -
Net Cash Used for
Capital and Related Financing Activities (10,261,386) (27,225) (36,702) -
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings (loss) 7,748,110 285,598 122,341 - Net Cash Provided by
Investing Activities 7,748,110 285,598 122,341 - Net Increase (Decrease)
in Cash and Cash Equivalents 6,584,064 1,294,170 (624,806) - Cash and Cash Equivalents - July 1 145,472,761 5,218,544 17,079,711 - Cash and Cash Equivalents - June 30 152,056,825$ 6,512,714$ 16,454,905$ -$ Reconciliation of Cash and Cash Equivalents to the
Amounts Reported on the Statement of Net Position
Cash and investments 152,056,613$ 6,512,714$ 16,454,557$ -$ Cash with fiscal agent 212 - 348 -
Total Cash and Cash Equivalents reported
on the Statement of Net Position 152,056,825$ 6,512,714$ 16,454,905$ -$ Business-Type Activities - Enterprise Funds
The notes to financial statements are an integral part of this statement. 48 CITY OF CHULA VISTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
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
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
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 earnings (loss)
Net Cash Provided by
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
24,585,075$ 86,050,288$ 368,646$
- - 10,515,521
(7,664,934) (41,144,643) (4,763,838)
(9,203,173) (21,410,963) (6,017,862)
(2,974) 6,570 131
7,713,994 23,501,252 102,598
330,761 2,363,023 706,124
(3,004,655) (9,493,788) (96,354)
- (465,740) -
(959,665) (844,752) -
- (943,223) (49,170)
- (613,645) (41,939)
(3,633,559) (9,998,125) 518,661
(790,991) (11,116,304) (21,014)
(903,001) (903,001) -
(65,446) (65,446) -
(1,759,438) (12,084,751) (21,014)
228,158 8,384,207 48,835
228,158 8,384,207 48,835
2,549,155 9,802,583 649,080
3,288,021 171,059,037 12,191,260
5,837,176$ 180,861,620$ 12,840,340$
4,745,115$ 179,768,999$ 12,840,301$
1,092,061 1,092,621 39
5,837,176$ 180,861,620$ 12,840,340$
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, 2024
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) 2,709,554$ 1,035,163$ (313,907)$ (501,587)$ Adjustments to Reconcile Operating Income (loss)
to Net Cash Provided by (Used for) Operating Activities:
Depreciation/Amortization 6,450,871 3,041 348,075 337,146 Restatement of beginning net position 644,335 (644,335) - - (Increase) decrease in accounts receivable 671,152 - (2,909) - (Increase) decrease in due from other governments - - 157 - (Increase) decrease in prepaid costs and inventories 666 - 768 - (Increase) decrease in deferred outflows from pensions 290,294 - 544,820 - (Increase) decrease in deferred outflows from OPEB 61,028 - 181,457 - Increase (decrease) in accounts payable 2,022,872 - 122,665 (29,186) Increase (decrease) in unearned revenue (422,364) - - - Increase (decrease) in retention payable 164,326 - 2,205 - Increase (decrease) in accrued liabilities (3,328) - 2,077 - Increase (decrease) in deposits payable - - (29,218) -
Increase (decrease) in compensated absences 33,193 - (77,992) - Increase (decrease) in net pension liability 1,005,226 - 1,801,550 - Increase (decrease) in total OPEB liability 145,783 - (439,142) - Increase (decrease) in deferred inflows from pensions (195,935) - (355,053) - Increase (decrease) in deferred inflows from OPEB 161,678 - 62,112 - Total Adjustments 11,029,797 (641,294) 2,161,572 307,960 Net Cash Provided by (Used for)
Operating Activities 13,739,351$ 393,869$ 1,847,665$ (193,627)$ Non-Cash Investing, Capital, and Financing Activities:
Capital contributions 5,292,292$ -$ -$ -$
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, 2024
CASH FLOWS FROM OPERATING ACTIVITIESReconciliation 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 due from other governments
(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 retention payable
Increase (decrease) in accrued liabilities
Increase (decrease) in deposits payable
Increase (decrease) in compensated absences
Increase (decrease) in net pension liability
Increase (decrease) in total 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:
Capital contributions
Governmental
Activities
Other
Enterprise
Funds Totals
Internal
Service Funds
Business-Type Activities -
Enterprise Funds
8,723,832$ 11,653,055$ (226,197)$
1,062,489 8,201,622 226,272
- - -
(2,814,084) (2,145,841) (152,960)
- 157 -
54,814 56,248 122
(531,502) 303,612 (53,158)
317,438 559,923 40,846
703,415 2,819,766 15,921
- (422,364) -
- 166,531 -
187,055 185,804 50,852
- (29,218) -
(66,629) (111,428) 3,426
1,710,248 4,517,024 393,249
(1,310,939) (1,604,298) (142,397)
(170,445) (721,433) (49,244)
(151,698) 72,092 (4,134)
(1,009,838) 11,848,197 328,795
7,713,994$ 23,501,252$ 102,598$
-$ 5,292,292$ -$
The notes to financial statements are an integral part of this statement. 51
52 FIDUCIARY FUND FINANCIAL
STATEMENTS
53 CITY OF CHULA VISTA
STATEMENT OF FIDUCIARY NET POSITION
FIDUCIARY FUNDS
JUNE 30, 2024
Private-Purpose
Trust Fund
Successor Agency
of the Former
Chula Vista RDA Custodial Funds
ASSETS
Cash and cash equivalents 8,873,219$ 8,532,982$
Cash and cash equivalents held with fiscal agents 268 63,903,477 Receivables:
Accounts - 492,530
Taxes - 81,204
Notes and loans 121,769 -
Accrued interest 48,709 143,993
Capital assets, not being depreciated 5,600,080 -
Capital assets, net of accumulated depreciation 702,683 - Total Assets 15,346,728 73,154,186
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding 1,001,806 -
Total Deferred Outflows of Resources 1,001,806 -
LIABILITIES
Current Liabilities:
Accounts payable - 625,173
Accrued interest 185,705 1,477,322
Deposits Payable - 15,486
Due to other governments 55,141 -
Due to bond holders - 8,938,943
Advances from the City of Chula Vista 4,261,293 -
Unavailable revenues 121,769 -
Bonds payable 2,075,000 -
Total Current Liabilities 6,698,908 11,056,924
Noncurrent Liabilities:
Bonds payable 17,752,679 -
Total Noncurrent Liabilities 17,752,679 -
Total Liabilities 24,451,587 11,056,924
NET POSITION (DEFICIT):
Restricted:
Individuals, organizations, and other governments (8,103,053) 62,097,262 Total Net Position (Deficit) (8,103,053)$ 62,097,262$ The notes to financial statements are an integral part of this statement. 54 CITY OF CHULA VISTA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
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 40,393$ 76,991$ Interest, dividends, and other 125,563 6,073,005
Total Investment Earnings 165,956 6,149,996
Bond proceeds - 159,347,175
Taxes 7,918,403 -
Contributions from other governments - 3,749,131
Special assessments - 17,907,364
Miscellaneous 57,900 -
Special tax district contribution - 484,652
Total Additions 8,142,259 187,638,318
DEDUCTIONS
Administrative expenses 17,717 6,355
Contractual services 359,680 8,504,106
Debt service and fiscal agent charges 624,571 80,831,613 Depreciation expense 47,724 -
Capital outlay - 148,177,568
Total Deductions 1,049,692 237,519,642
Net Change in Fiduciary Net Position 7,092,567 (49,881,324) NET POSITION (DEFICIT) - Beginning as previously reported (15,195,620) 45,011,565 Error correction - 66,967,021
Net Position (Deficit) - Beginning, as restated (15,195,620) 111,978,586 NET POSITION (DEFICIT) - ENDING (8,103,053)$ 62,097,262$ The notes to financial statements are an integral part of this statement. 55
56 CITY OF CHULA VISTA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2024
NOTE DESCRIPTION PAGE
Note 1 – Reporting Entity and Summary of Significant Accounting Policies ......................................................... 58 Note 2 – Reconciliation of Government-Wide and Fund Financial Statements ....................................................... 71 Note 3 – Stewardship, Compliance, and Accountability .......................................................................................... . 71 Note 4 – Cash and Investments ............................................................................................................................... . 72 Note 5 – Receivables ............................................................................................................................................... . 76 Note 6 – Interfund Balances and Transactions ........................................................................................................ . 81 Note 7 – Capital Assets ........................................................................................................................................... . 83 Note 8 – Long-Term Liabilities ............................................................................................................................... . 85 Note 9 – Unearned Revenue .................................................................................................................................... 100 Note 10 – Compensated Absences ........................................................................................................................... 100 Note 11 – Self-Insurance Accrued Liabilities .......................................................................................................... 101 Note 12 – Pension Plans .......................................................................................................................................... 102 Note 13 – Post Retirement Health Benefits ............................................................................................................. 110 Note 14 – Commitments and Contingencies ........................................................................................................... 113 Note 15 – Classification of Fund Balances .............................................................................................................. 115 Note 16 – Restatements of Fund Balance and Net Position ..................................................................................... 116 57 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 City’s 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 entity’s financial statements to be misleading or incomplete.
Blended Component Unit
Blende
d component units, although legally separate entities, are, in substance part of the primary government’s 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 can 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 De
velopment 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 Authority’s 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 Pu
blic 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. 58 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) A. Reporting Entity (Continued)
The Chula Vista Municipal Financing Authority (the “Municipal Financing Authority”) The Mun
icipal 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 Housi
ng Authority was created by the City of Chula Vista City Council (“City Council”) in March 1993 to centrally coordinate and administer the City’s 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 Authority’s 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
Fiducia
ry 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 influence and impose the City’s 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 City’s 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 Ba
yfront 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 Ba
yfront 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 59 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued)
B. Basis of Accounting and Measurement Focus (Continued)
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 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 City’s 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 City’s 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.
60 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 Re
conciliation 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.
The City reports the following major Governmental Funds:
General Fund – This is the primary operating fund of the City. 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 miscellaneous 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
Proprie
tary 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 City’s 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, 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.
61 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Operat
ing 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 CVEATC’s activities in partnership with the CVEATC operator Elite Athlete Services (EAS).
Fiduciary Fund Financial Statements
Fiducia
ry fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City’s fiduciary funds represent custodial funds and private purpose trust funds.
Fiduciary fund types are accounted for according to the nature of the fund. The City’s 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 City’s 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.
62 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 Succ
essor 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 loss on investments amounted to $8,237,231 for the fiscal year ended June 30, 2024.
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. 63 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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, certificates 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 3-15 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 gov
ernmental and business-type activities, compensated absences are recorded as expenses and liabilities as incurred.
64 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 City’s 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 fund’s 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 City’s California Public Employees’ Retirement System (CalPERS) plan (Plan) and additions to/deductions from the Plan’s 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, 2022
Measurement Date June 30, 2023
Measurement Period July 1, 2022, to June 30, 2023
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, 2023
Measurement Date June 30, 2024
Measurement Period July 1, 2023, to June 30, 2024
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. 65 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) M. Leases
City as Lessee
The Ci
ty 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 Ci
ty 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 uses 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 three 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 City’s 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. 66 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 four 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 and third items are 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 fourth 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 County’s 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 consists 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 restricted 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 City’s policy is to apply restricted Net Position first, then unrestricted Net Position as they are needed. 67 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 government’s 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 year’s 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 City’s 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 a
n expense is incurred for purposes for which both restricted and unrestricted Net Position are available, the City’s policy is to apply restricted Net Position first. 68 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 1 – Reporting Entity and Summary of Significant Accounting Policies (Continued) S. Spending and Reserve Policy (Continued)
Governmental Fund Financial Statements
When e
xpenditures 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.
The City Council approved and adopted a Citywide Reserve Policy to provide for the establishment of reserves, reserve levels, methodology for calculating reserves, use of reserves, and replenishment of reserves for the General Fund and other funds.
General Fund Reserves
Pursuant
to the Citywide Reserve Policy, the City maintains the following General Fund Reserves:
General Fund Operating Reserve: represents unrestricted resources available for appropriation by the City Council to address extraordinary needs of an emergency nature, funded at 15% of prior year’s adopted General Fund budgeted operating expenditures, including transfers out related to debt service payments and recurring operating obligations.
Economic Contingency Reserve: 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, transient occupancy tax, etc., funded at minimum of 5% of prior year’s adopted General Fund budgeted operating expenditures, including transfers out related to debt service payments and recurring operating obligations.
Catastrophic Event Reserve: represents monies set aside to fund unanticipated expenditures related to a major disaster in the City and are associated with the City’s Emergency Organization Department and Disaster Council, funded at 3% of prior year’s adopted General Fund budgeted operating expenditures, including transfers out related to debt service payments and recurring operating obligations.
Pension, Bond Call, and OPEB Reserves
Pursuant
to the Citywide Reserve Policy, the City maintains Pension, Bond Call, and OPEB Reserves to ensure the City has adequate reserves to fund future pension, debt, and OPEB liabilities. These reserves are funded by annual, net savings related to the City’s 2021 issuance of pension obligation bonds and remaining General Fund surplus funds after meeting the minimum targets of the General Fund Reserves.
Measure A Fund Reserve
Pursuant
to the Citywide Reserve Policy, the City maintains a Measure A Fund Economic Contingency Reserve. This reserve was 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 City’s Police and Fire Departments. It is funded by 16% of Measure A fund’s annual operating budget.
Enterprise Fund Reserves
Pursuant
to the Citywide Reserve Policy, 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. 69 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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, 2024, the City adopted the following accounting standard issued by the Governmental Accounting Standards Board (GASB):
1. GASB Statement No. 99, Omnibus 2022
The requirements of this Statement will enhance comparability in the application of accounting and financial reporting requirements and will improve the consistency of authoritative literature. Consistent authoritative literature enables governments and other stakeholders to more easily locate and apply the correct accounting and financial reporting provisions, which improves the consistency with which such provisions are applied.
The comparability of financial statements also will improve as a result of this Statement. Better consistency and comparability improve the usefulness of information for users of state and local government financial statements. The requirements related to extension of the use of the London Interbank Offered Rate (LIBOR), accounting for Supplemental Nutrition Assistance Program (SNAP) distributions, disclosures of nonmonetary transactions, pledges of future revenues by pledging governments, clarification of certain provisions in Statement No. 34, as amended, and terminology updates related to Statements No. 53 and No. 63 are effective upon issuance. The requirements related to leases, Public-Private and Public-Public Partnerships (PPPs), and Subscription-Based Information Technology Arrangements (SBITAs) are effective for fiscal years beginning after June 15, 2022, and all reporting periods thereafter. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53 are effective for fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
2. GASB Statement No. 100, Accounting Changes and Error Corrections
The requirements of this Statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability.
In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections.
The requirements of this Statement are effective for accounting changes and error corrections made in fiscal years beginning after June 15, 2023, and all reporting periods thereafter.
70 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 2 – Reconciliation of Government-Wide and Fund Financial Statements A. 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 $429,893 difference are as follows:
Internal receivable representing charges in ex cess of cost to business-type activities - prior years 443,859$
Internal receivable representing charges in ex cess of cost to business-type activities - current year (13,966)
Net adjustment to increase net position - total enterprise funds to arrive at net position - business-type activities 429,893$
Note 3 – Stewardship, Compliance, and Accountability
A. Deficit Fund Equity
At June 30, 2024, the Sewer Development Impact Fees Fund and the Development Services Fund, both major proprietary funds, reported deficits in net position in the amounts of $12,513,208 and $14,181,254, respectively.
The reason for the deficit in the Sewer Development Impact Fees Fund is the long-term advance payable in the amount of $19,284,732 to the General Fund discussed in Note 6. 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 $15,427,350 as of June 30, 2024. The deficit is expected to be eliminated in future years as the revenue is recognized as a reduction to net pension liability.
At June 30, 2024, the following non-major funds had deficit fund equity:
Fund Type Funds Deficit
Traffic Safety 1,685$
Transportation Sales Tax 24,070
Residential Construction Tax 1,409,110
Special Revenue
Special Revenue
Capital Projects
Capital ProjectsOther Transportation Program Fund 635,203 Tra
ffic Safety – The Traffic Safety Fund had an accumulated deficit of $1,685 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.
Transportation Sales Tax - The Transportation Sales Tax Fund had an accumulated deficit of $24,070 due to the timing of the receipt of the City’s allocation of SANDAG’s ½ cent sales tax levy compared to disbursements. The City expects to eliminate this deficit through future revenues.
Residential Construction Tax – The Residential Construction Tax Fund had an accumulated deficit of $1,409,110 due to debt service payment that are expected to be eliminated through future revenues.
Other Transportation Program – The Other Transportation Program Fund had an accumulated deficit of $635,203 due the timing of the reimbursement of grant revenues for the capital expenditures incurred. 71 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 4 – Cash and Investments
The following is a summary of pooled cash and investments, including cash and investments with fiscal agents at June 30, 2024.
Fiduciary Funds
Governmental Business-Type Statement of Net
Activities Activities Subtotal Position Total
Cash and investments 490,362,288$ 180,861,620$ 671,223,908$ 17,406,201$ 688,630,109$ Restricted cash and investments:
Held by City 900,107 - 900,107 - 900,107 Held by fiscal agents 34,485,646 - 34,485,646 63,903,745 98,389,391 Total restricted cash and investments 35,385,753 - 35,385,753 63,903,745 99,289,498 Total cash and investments 525,748,041$ 180,861,620$ 706,609,661$ 81,309,946$ 787,919,607$ Government-Wide Statement of Net Position
Cash, cash equivalents and investments consisted of the following at June 30, 2024:
Petty Cash 9,789$
Deposits with financial institutions 25,555,367
Investments 692,094,729
Investments held by fiscal agents 70,259,722
Total cash and investments 787,919,607$
A. Deposits
The carrying amount of the City’s cash deposits were $25,555,367 on June 30, 2024. Bank balances before reconciling items were $25,313,677 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City’s name as discussed below.
The California Government Code requires California banks and savings and loan associations to secure the City’s 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 City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements.
The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund.
72 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 4 – Cash and Investments (Continued)
B. Investments
As of June 30, 2024, the City had the following investments and maturities:
Investment Type Fair Value 1 year or fewer 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years LAIF 30,136,763$ 30,136,763$ -$ -$ -$ -$ Time deposits 310,000 310,000 - - - - San Diego County Investment Fund 323,192 323,192 - - - - United States Treasuries 175,823,824 71,875,373 37,570,778 23,142,673 23,623,980 19,611,020 Federal agency bonds 203,670,176 73,048,522 54,248,303 46,812,124 12,861,905 16,699,322 Municipal bonds 58,492,501 16,958,837 23,981,143 11,781,700 5,770,821 - Supranationals 26,824,835 5,931,150 6,248,265 9,620,320 - 5,025,100 Commercial Paper 4,901,089 4,901,089 - - - - Asset-backed securities - - - - - - Medium-term corporate notes 146,353,866 43,483,715 30,874,036 32,233,070 6,049,500 33,713,545 Certificates of deposit 11,709,971 11,459,139 - - 250,832 - Placement service deposits 4,391,782 4,391,782 - - - - Money market funds 29,156,730 29,156,730 - - - - Held by bond trustee:
Mutual funds 61,921,693 61,921,693 - - - - LAIF 8,338,029 8,338,029 - - - - Total 762,354,451$ 362,236,014$ 152,922,525$ 123,589,887$ 48,557,038$ 75,048,987$ Investment Maturities
Investments Authorized by the California Government Code and the City’s Investment Policy
The table below identifies the investment types that are authorized for the City by the California Government Code (or the City’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City’s 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 City’s investment policy.
Authorized Investment Type
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%
Time Certificates of Deposits 5 years None None
Money Market Funds N/A 20% 10%
San Diego County Treasurer'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
73 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 4 – Cash and Investments (Continued)
B. Investments (Continued)
Investments Authorized by Debt Agreements
Invest
ments 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 City’s 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 T reasury 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, Time 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. Risk
s Disclosures
Interest Rate Risk
As a me
ans of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy provides that final maturities of securities cannot exceed five years. Specific maturities of investments depend on liquidity needs. At June 30, 2024, the City’s pooled cash and investments had the following maturities:
Maturity
Percentage of
Inv estment
Less than one year 47.5%
1 - 2 years 20.1%
2 - 3 years 16.2%
3 - 4 years 6.4%
4 - 5 years 9.8%
The wei
ghted average maturity of the portfolio was 1.8 years.
Credit Risk
General
ly, 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. 74 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 4 – Cash and Investments (Continued)
C. Risks Disclosures (Continued)
The City’s investments are rated by the nationally recognized statistical rating organizations as follows:
Standard &
Investment Type Fair Value Moody's Poor's
LAIF 30,136,763$ Not rated Not rated
Time deposits 310,000 Not rated Not rated
San Diego County Investment Fund 323,192 Not rated Not rated United States Treasuries 175,823,824 Exempt Exempt
Federal agency bonds 203,670,176 Exempt Exempt
Municipal bonds 58,492,501 A1 to Aa1 A to AA+
Supranationals 26,824,835 Aaa AAA
Commercial Paper 4,901,089 P-1 Not rated
Asset-backed securities - Aaa AAA Medium-term corporate notes 146,353,866 A3 to Aaa BBB+ to AAA Certificates of deposit 11,709,971 Not rated Not rated Placement service deposits 4,391,782 Not rated Not rated Money market funds 29,156,730 Not rated Not rated
Held by bond trustee:
Mutual funds 61,921,693 Not rated Not rated
LAIF 8,338,029 Not rated Not rated
Total 762,354,451$
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 City’s 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, 2024, the City had no investments in any one issuer that exceeded percentage of portfolio limitations set forth by either the City’s 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, 2024, the City had $30,136,763 invested in LAIF. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2024, by multiplying its account balance with LAIF times a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants’ total aggregate amortized cost by total aggregate fair value. The credit quality rating of LAIF is unrated as of June 30, 2024. There are no limitations or restrictions on participant withdrawals from LAIF.
75 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 4 – Cash and Investments (Continued)
E. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The City had the following recurring fair value measurements as of June 30, 2024:
Investment Type Totals Level 1 Level 2 Uncategorized
LAIF 30,136,763$ -$ -$ 30,136,763$
Time deposits 310,000 - 310,000 -
San Diego County Investment Fund 323,192 - - 323,192 United States Treasuries 175,823,824 175,823,824 - - Federal agency bonds 203,670,176 - 203,670,176 -
Municipal bonds 58,492,501 - 58,492,501 -
Supranationals 26,824,835 - 26,824,835 -
Commercial Paper 4,901,089 - 4,901,089 -
Asset-backed securities - - - -
Medium-term corporate notes 146,353,866 - 146,353,866 - Certificates of deposit 11,709,971 - 11,709,971 -
Placement service deposits 4,391,782 - - 4,391,782
Money market funds 29,156,730 - - 29,156,730
Held by bond trustee:
Mutual funds 61,921,693 - - 61,921,693
LAIF 8,338,029 - - 8,338,029
Total 762,354,451$ 175,823,824$ 452,262,438$ 134,268,189$ U.S. Tre
asury 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, 2024, the City had the following taxes receivable:
Governmental Fiduciary
Activities Funds Total
Sales Tax 19,372,174$ -$ 19,372,174 $
Property Tax 609,569 - 609,569
Highway Users Tax 1,888,400 - 1,888,400
Franchise Fee Tax 3,168,705 - 3,168,705
Special Assessments - 81,204 81,204
Other Tax es 1,995,658 - 1,995,658
Total 27,034,506$ 81,204$ 27,115,710$
76 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 5 – Receivables (Continued)
B. Loans Receivable
At June 30, 2024, the City had the following loans receivable, including principal and accrued interest:
Principal Interest Total
South Bay Community Services (Trolley Trestle, Muncey M anor, CNV I, CNII, NCV II) 2,022,483$ 2,498,829$ $ 4,521,312 Cordova and Trolley Terrace Apartments (Cordova Trolley, LP) 2,672,511 509,049 3,181,560 St. Regis Park (Chelsea Investment Corp) 1,232,822 149,993 1,382,815 Chula Vista Rehabilitation CHIP Loans 869,658 96,643 966,301 Los Vecinos (Wakeland Housing and Development Corporation) 5,680,000 4,641,732 10,321,732 Brisa del Mar (Main Plaza, LP) 1,800,000 847,440 2,647,440 Seniors on Broadway (MAAC Project) 3,511,194 1,911,815 5,423,009 The Landings II (Chelsea Investment Corp) 8,034,086 2,160,013 10,194,099 First Time Home Buyers Program 2,981,896 259,016 3,240,912 NSP Rental Housing Program 1,000,000 256,973 1,256,973 Lofts on Landis 2,000,000 608,486 2,608,486
Duetta Apartments (F Street Family CIC, LP) 2,068,000 511,464 2,579,464 Volta Senior Apartments (G Street Seniors CIC, LP) 932,000 227,618 1,159,618 Anita Street Apartments (Wakeland- Anita LP) 5,195,165 492,331 5,687,496 Deferred development impact fees 10,040,010 779,3 78 10,819,388 50,039,825$ 15,950,780$ 65,990,605$
Governmental Activities
South B
ay Community Services
In 1998, t
he 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, 2024, the outstanding balance of the loan was $4,521,312, which included an interest accrual of $2,498,829.
Cordova and Trolley Terrace Apartments- (Cordova Trolley, LP) In Janua
ry 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, 2024, the outstanding balance of the loan was $3,181,560, which included an interest accrual of $509,049.
St. Regis Park (Chelsea Investment Corporation)
In 2000, t
he 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 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 77 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 5 – Receivables (Continued)
B. Loans Receivable (Continued)
St. Regis Park (Chelsea Investment Corporation) (Continued)
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, 2024, the outstanding balance of the loan was $1,382,815, which included an interest accrual of $149,993.
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, 2024, the outstanding balance of the loan was $966,301, which included an interest accrual of $96,643.
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, 2024, the outstanding balance of the loan was $10,321,732, which included an interest accrual of $4,641,732.
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 City’s issuance of the Certificate of Completion, which is in 2061. At June 30, 2024, the outstanding balance of the loan was $2,647,440 which included an interest accrual of $847,440.
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 City’s issuance of the Certificate of Completion. At June 30, 2024, the outstanding balance of the loan was $5,432,009, which included an interest accrual of $1,911,815.
The Landings II (Chelsea Investment Corporation)
In July 2010, the former RDA and City entered into loan agreements 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 loans bear interest rates ranging from 3% to 3.6% per annum and requires monthly payments based on a 25-year amortization schedule. At June 30, 2024, the outstanding balance of the loan was $10,194,009, which included an interest accrual of $2,160,013.
78 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 5 – Receivables (Continued)
B. Loans Receivable (Continued)
First Time Home Buyers Program
The Ch
ula 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 application process is currently administered by the San Diego Housing Commission. 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, 2024, the outstanding balance of the loan was $3,240,912, which included an interest accrual of $259,016.
NSP Rental Housing Program
The Cit
y 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, 2024, the outstanding balance of the loan was $1,256,973, which included an interest accrual of $256,973.
Lofts on Landis
The Ci
ty entered into two separate loan agreements with Lofts on Landis LP to assist in the construction of affordable apartments with 32 restricted units for occupancy by extremely low, very low, and low income households. The loans bear an interest rate of 3% simple interest per annum. Payment of principal and interest is due on an annual basis to the extent of the property’s residual receipts. The loan matures after a 55-year period.
At June 30, 2024, the outstanding balance of the loan was $2,608,486, which included an interest accrual of $608,486.
Duetta Apartments (F Street Family CIC, LP)
In 2016, t
he City entered into a loan agreement with F Street Family CIC, LP 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 City’s federal HOME funds, $372,660 from the City’s 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, 2024, the outstanding balance of the loans were $2,579,464, which included an interest accrual of $511,464.
Volta Senior Apartments (G Street Seniors CIC, LP)
In 2016, t
he City entered into a loan agreement with G Street Senior CIC, LP 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, 2024, the outstanding balance of the loans were $1,159,618, which included an interest accrual of $227,618. 79 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 5 – Receivables (Continued)
B. Loans Receivable (Continued)
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, 2024, the outstanding balance of the loans were $5,687,496, which includes an interest accrual of $492,331.
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, 2024, the outstanding balance of the loans were $10,819,388 which includes interest accrual $779,378.
C. 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, 2024, the value of the lease receivable is $124,542. The lessee is required to make monthly fixed payments of $5,000 through 03/30/2024 and monthly fixed payments of $5,100 from 04/01/2024. 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, 2024 was $124,542, and the City recognized lease revenue of $60,000 during the fiscal year. The term may be extended by mutual agreement of the parties.
80 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 6 – Interfund Balances and Transactions
Due to/Due from other funds
At June 30
, 2024, interfund receivables and payables were as follows:
Due from Other
Funds
CV Elite Athlete
Training Center
Nonmajor
Governmental
Funds Total
General Fund 566,718$ 2,051,223$ 2,617,941$
Curre
nt 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
, 2024, balances were as follows:
Sewer Other
Development Enterprise
Impact Fees Funds Total
Advances to Other Funds:
General -$ 1,380,956$ 1,380,956$
Sewer Fund 19,284,732 - 19,284,732
Total 19,284,732$ 1,380,956$ 20,665,688$
Advances from Other Funds:
The Ci
ty Council authorized and set terms for a loan from the Trunk Sewer Capital Reserve fund to the Salt Creek Trunk Sewer Development Impact Fee fund for $20,667,477, via Resolution 2015-029. 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 $19,284,732 at June 30, 2024.
The City Council authorized and set terms for loans from the General Fund to Transport Enterprise nonmajor enterprise fund for a maximum amount of $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 $1,380,956 at June 30, 2024.
81 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 6 – Interfund Balances and Transactions (Continued) Transfers In/Out
Interf
und transfers for the year ended June 30, 2024, were as follows:
Federal, Other CV Elite Other
State, and Governmental Development Athlete Enterprise Internal Transfers Out General Local Grants Funds Sewer Fund Services Fund Training Ctr Funds Service Funds Total General -$ 118,533 $ 47,144,008$ 23,500$ 862,288$ 132,940 $ 330,761$ 706,124 $ 49,318,154$ Federal, State and Local Grants 19,862,531 - 5,791,357 722,128 123,793 - - - 26,499,809 Housing Successor Agency 5,110 - - - - - - - 5,110 Development Impact Funds 40,243 - 5,123,621 - - - - - 5,163,864 Other Governmental Funds 5,241,908 - 747,177 - - - - - 5,989,085 Sewer Fund 3,720,117 - - - 17,613 - - - 3,737,730 Sewer Development Impact Fee 2,408 - - - - - - - 2,408 Development Services Fund 2,544,769 - - - - - - - 2,544,769 CV Elite Athlete Training Ctr - - 54,226 - - - - - 54,226 Other Enterprise Funds 3,004,655 - - - - - - - 3,004,655 Internal Service Funds 96,354 - - - - - - - 96,354 Total 34,518,095$ 118,533$ 58,860,389$ 745,628$ 1,003,694$ 132,940 $ 330,761$ 706,124 $ 96,416,165$ Transfers In
General F
und – Transfer from various Funds in the amount of $34,518,095 to the General Fund for operating support related to city staff services and equipment.
Federal, State and Local Grants Fund – Transfer from the General Fund in the amount of $118,533 for matching contribution to federal grants and operating support to the Federal, State, and Local Grants Fund.
Other Governmental Funds – Transfer from the General Fund in the amount of $47,144,008, transfer from the Development Impact Funds in the amount of $5,123,621 and transfer from Other Governmental Funds in the amount of $747,177 for various debt obligations. Transfer from the Chula Vista Elite Athlete Training Center Fund to Eastlake Maintenance District Zone C in the amount of $54,226 for taxes related to City owned property. Transfer from the Federal, State, and Local Grants Fund in the amount of $5,791,357 for various debt obligations and operating support.
Sewer Fund – Transfer from the General Fund in the amount of $23,500 and transfer from the Federal, State, and Local Grants Fund in the amount of $722,128 to provide operating support to the Sewer Fund.
Development Services Fund – Transfer from the General Fund in the amount of $862,288, transfer from the Federal, State, and Local Grants Fund in the amount of $123,793 and transfer from the Sewer Fund in the amount of $17,613 to provide operating support to the Development Services Fund.
Chula Vista Elite Athlete Training Center – Transfer from the General Fund in the amount of $132,940 for telecom site license fees collected.
Other Enterprise Funds – Transfer from the General Fund in the amount of $330,761 for operating support to the Other Enterprise Funds for services provided.
Internal Service Funds – Transfer from the General Fund in the amount of $706,124 for operating support to the Internal Service Funds for services provided.
82 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 7 – Capital Assets
A. Government-Wide Financial Statements
A Summary of changes in capital assets for governmental activities for the year ended June 30, 2024, was as follows:
Balance CIP Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated/amortized:
Land 436,183,524$ -$ -$ -$ 436,183,524$
Construction in progress 202,583,216 73,270,610 - (8,947,948) 266,905,878 Total capital assets, not being depreciated/amortized 638,766,740 73,270,610 - (8,947,948) 703,089,402 Capital assets, being depreciated/amortized:
Buildings 231,162,805 - - - 231,162,805
Improvements other than buildings 158,503,115 - - - 158,503,115 Machinery and equipment 59,518,261 5,927,704 (2,155,766) - 63,290,199 Infrastructure 906,119,939 11,955,097 - 8,947,948 927,022,984 Subscription assets 3,156,253 947,018 (964,754) - 3,138,517 Lease equipment assets 912,932 81,684 - - 994,616 Subtotal 1,359,373,305 18,911,503 (3,120,520) 8,947,948 1,384,112,236 Less accumulated depreciation/amortization
Buildings (81,975,780) (4,540,590) - - (86,516,370) Improvements other than buildings (68,145,391) (3,554,707) - - (71,700,098) Machinery and equipment (40,795,709) (5,402,231) 2,155,766 - (44,042,174) Infrastructure (443,445,007) (23,926,323) - - (467,371,330) Subscription assets (600,595) (1,403,376) 827,229 - (1,176,742) Lease equipment assets (408,180) (128,178) - - (536,358) Subtotal (635,370,662) (38,955,405) 2,982,995 - (671,343,072) Total capital assets, being depreciated/amortized 724,002,643 (20,043,902) (137,525) 8,947,948 712,769,164 Total gov ernmental activ ities 1,362,769,383$ 53,226,708$ (137,525)$ -$ 1,415,858,566$ Depreci
ation/amortization expense was charged to functions/programs as follows:
General government 880,148$
Public safety 4,005,695
Public works 32,887,779
Community development 265,704
Parks and recreation 677,088
Library 12,719
Internal service 226,272
38,955,405$
83 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 7 – Capital Assets (Continued)
A. Government-Wide Financial Statements (Continued)
A Summary of changes in capital assets for business-type activities for the year ended June 30, 2024, was as follows:
Balance CIP Balance
July 1, 2023 Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated/amortized:
Land 181,275,803$ -$ -$ -$ 181,275,803$ Construction in progress 10,302,900 8,540,190 - (476,401) 18,366,689 Total capital assets, not being depreciated/amortized 191,578,703 8,540,190 - (476,401) 199,642,492 Capital assets, being depreciated/amortized:
Buildings and Structures 17,159,874 - - - 17,159,874 Improvements other than buildings 595,267 35,178 - - 630,445 Machinery and equipment 13,955,045 2,500,292 (992,087) - 15,463,250 Infrastructure 268,541,751 5,292,292 - 476,401 274,310,444 Subscription assets 872,626 40,647 (131,209) - 782,064 Lease equipment assets 5,350 - - - 5,350 Subtotal 301,129,913 7,868,409 (1,123,296) 476,401 308,351,427 Less accumulated depreciation/amortization
Buildings and Structures (2,486,224) (339,817) - - (2,826,041) Improvements other than buildings (464,739) (30,938) - - (495,677) Machinery and equipment (9,266,558) (2,010,037) 992,087 - (10,284,508) Infrastructure (151,520,006) (5,452,097) - - (156,972,103) Subscription assets (174,525) (368,733) 131,209 - (412,049) Lease equipment assets (5,350) - - - (5,350) Subtotal (163,917,402) (8,201,622) 1,123,296 - (170,995,728) Total capital assets, being depreciated/amortized 137,212,511 (333,213) - 476,401 137,355,699 Total business-type activ ities 328,791,214$ 8,206,977$ -$ -$ 336,998,191$
Depreciation/amortization expense for business-type activities for the year ended June 30, 2024, was as follows:
CV Elite Training Center 337,146$
Sewer 6,450,871
Sewer Development Impact Fees 3,041
Development Services 348,075
Transport Enterprise 993,277
Golf course 64,326
Transit 4,886
8,201,622$
84 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 7 – Capital Assets (Continued)
B. Fiduciary Funds Financial Statements
A Summary of changes in capital assets for fiduciary funds for the year ended June 30, 2024, were as follows:
Balance Adjustments and CIP Balance
July 1, 2023 Restatements Additions Deletions Transfers June 30, 2024 Capital assets, not being depreciated:
Land 5,600,080$ -$ -$ -$ -$ 5,600,080 $
Construction in progress 135,822,432 (135,822,432) - - - - Total capital assets, not being depreciated 141,422,512 (135,822,432) - - - 5,600,080 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 (1,635,811) - (47,724) - - (1,683,535) Subtotal (1,635,811) - (47,724) - - (1,683,535) Total capital assets, being depreciated 750,407 - (47,724) - - 702,683 Total fiduciary activities 142,172,919$ (135,822,432)$ (47,724)$ -$ -$ 6,302,763 $ Depreci
ation expense for fiduciary funds for the year ended June 30, 2024, was $47,724 being reported in private-purpose trust funds.
Note 8 – Long-Term Liabilities
A summary of changes in long-term debt for the year ended June 30, 2024, was as follows:
Balance Balance Amount
Beginning of End Due Within
Year Additions Deletions of Year One Year
Governmental Activities:
Bonds payable
Certificates of participation 58,955,000$ -$ 4,475,000$ 54,480,000$ 4,660,000$ Lease revenue bonds 55,275,000 - 7,935,000 47,340,000 8,345,000 Premium 8,827,841 - 1,486,615 7,341,226 -
Total bonds payable 123,057,841 - 13,896,615 109,161,226 13,005,000 Private placement notes 6,225,594 - 2,484,612 3,740,982 864,940 Pension-related debt 308,481,721 - 8,298,985 300,182,736 8,492,521 Financed purchases 7,911,814 - 952,031 6,959,783 1,319,037 Leases 442,467 - 144,168 298,299 148,142
Subscriptions 1,283,006 913,370 815,391 1,380,985 691,249 Total Governmental Activities 447,402,443$ 913,370$ 26,591,802$ 421,724,011$ 24,520,889$ Business-Type Activities:
Pension-related debt 26,243,279$ -$ 706,015$ 25,537,264$ 722,479$ Financed purchases 2,736,252 - 903,001 1,833,251 912,053 Subscriptions 487,080 40,646 241,763 285,963 285,963 Total Business-Type Activities 29,466,611$ 40,646$ 1,850,779$ 27,656,478$ 1,920,495$ Gover
nmental Activities
A. Certificates of Participation
2014 Refunding COP
In Feb
ruary 2014, the Chula Vista Public Financing Authority (Authority) issued $45,920,000 in 2014 Certificates of Participation to refinance the City’s outstanding 2002 Certificates of Participation (Police Facility Project), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. 85 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
A. Certificates of Participation (Continued)
2014 Refunding COP (Continued)
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 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, 2024, the outstanding balance was $27,095,000.
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 City’s 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, 2024, the outstanding balance was $18,785,000.
The Chula Vista Public Financing Authority has pledged an estimated $10,862,574 in Residential Construction Tax (RCT) (Fund 717) revenues to the repayment of Principal ($7,826,813) and Interest ($3,035,761) of the 2015 Refunding COP from the first debt service payment date on March 1, 2016 through the final maturity of the bonds on March 1, 2034, or early retirement of the bonds, whichever comes first. Tax revenues consist of fees that are charged to new residential units, including hotels and motels, which generate householders who impose a burden upon public facilities and infrastructure of the City. More information on the RCT can be found in the Chula Vista Municipal Code Chapter 3.32. In Fiscal Year 2024, a total of $666,125.48 in RCT pledged revenues was applied towards the Principal and Interest Debt Service Payments. Estimated balance on pledged revenues as of June 30, 2024 was $5,085,909.
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 City’s 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
86 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
A. Certificates of Participation (Continued)
2016 Refunding COP (Continued)
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, 2024, the outstanding balance was $8,600,000.
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 City’s 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, 2024, the outstanding balance was $14,455,000.
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, 2024, the outstanding balance was $20,445,000.
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, 2024, the outstanding balance was $11,890,000.
87 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
B. Lease Revenue Bonds (Continued)
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.
The bonds mature in 2029 and principal is payable on December 1 each year, commencing December 1, 2019.
As of June 30, 2024, the outstanding balance was $550,000.
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 City’s annual entitlement. Proceeds 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, 2024, the outstanding balance was $3,299,000.
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, 2024, the outstanding balance was $99,764.
California Energy Commission Loans/SDG&E On-Bill Financing
On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the City’s 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, 2024, the outstanding balance was $342,218.
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 Treasury’s 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. On October 23, 2023, the City received a notice from the Department of Housing and Community Development confirming the outstanding loan in the amount of $1,554,249 had been forgiven. As of June 30, 2024, the outstanding balance was $0.
88 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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 $325,720,000. The bonds are allocated among the various funds on the same basis as the City’s net pension liability. The portion of the bonds attributable to governmental activities, after the allocation attributable to business-type activities of $25,537,264, on June 30, 2024, was $300,182,736.
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, 2024, the outstanding balance was $830,942.
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, 2024, the outstanding balance was $396,669.
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, 2024, the outstanding balance was $479,417.
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, 2024, the outstanding balance was $392,917.
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, 2024, the outstanding balance was $927,746.
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, 2024, the outstanding balance was $3,932,092.
89 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
F. Leases Payable
IPS Group Smart Parking Meters Lease
On July 1, 2023, the City entered into a 30-month lease as Lessee for the use of IPS Group Smart Parking Meters Lease. An initial lease liability was recorded in the amount of $10,770. As of June 30, 2024, the value of the lease liability was $7,932. The lessee is required to make monthly fixed payments. The lease has an interest rate of
3.2410%.
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, 2024, the value of the lease liability is $290,367. The City is required to make annual fixed payments.
The lease has an interest rate of 3.2000%. The City has the option to purchase the equipment for $151,894.
G. 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, 2024, the value of the subscription liability is $297,663. The City is required to make annual payments. The subscription has an interest rate of
2.1840%. The portion of the subscription attributable to governmental activities, after the allocation attributable to business-type activities of $148,028, on June 30, 2024, was $149,635.
AutoReturn Impound Management Software
On October 3, 2023, the City entered into a 36-month subscription for the use of AutoReturn Impound Management Software. An initial subscription liability was recorded in the amount of $323,281. As of June 30, 2024, the value of the subscription liability is $223,282. The City is required to make annual fixed payments. The subscription has an interest rate of 3.7740%. The City has 2 extension option(s), each for 12 months, which are very likely of being exercised. The term and initial liability include the 2 extension options.
Benevate Neighborly Software
On July 1, 2023, the City entered into a 60-month subscription for the use of Benevate Neighborly Software. An initial subscription liability was recorded in the amount of $56,528. As of June 30, 2024, the value of the subscription liability is $44,528. The City is required to make annual fixed payments. The subscription has an interest rate of 3.0720%. The City has 4 extension option(s), each for 12 months, which are very likely of being exercised. The term and initial liability include the 4 extension options.
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, 2024, the value of the subscription liability is $34,791. The City is required to make annual fixed payments. The subscription has an interest rate of 3.0720%. The City has 3 extension option(s), each for 12 months, of which 2 have already been exercised.
90 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
G. Subscriptions Payable (Continued)
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, 2024, the value of the subscription liability is $12,222. The City is required to make annual fixed payments. The subscription has an interest rate of
2.2750%.
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, 2024, the value of the subscription liability is $89,215. The City is required to make annual fixed payments. The subscription has an interest rate of 2.1840%. The City has 5 extension option(s), each for 12 months. The portion of the subscription attributable to governmental activities, after the allocation attributable to business-type activities of $70,176, on June 30, 2024, was $19,039.
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, 2024, the value of the subscription liability is $57,060. The City is required to make annual fixed payments. The subscription has an interest rate of
2.1840%. The City has 5 extension option(s), each for 12 months.
Forensic Technology – IBIS Subscription Lease PD
On November 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, 2024, the value of the subscription liability is $227,345. The City is required to make annual fixed payments. The subscription has an interest rate of 1.7100%. The City has 5 extension option(s), each for 12 months. The term and initial liability include the 5 extension options.
GovInvest Saas Licensing Agreement
On June 1, 2024, the City entered into a 37-month subscription for the use of GovInvest Saas Platform. An initial subscription liability was recorded in the amount of $230,885. As of June 30, 2024, the value of the subscription liability is $230,885. The City is required to make annual fixed payments. The subscription has an interest rate of
2.8510%.
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. On January 11, 2023, the City exercised the 1st option to extend the agreement for 12 months. On January 11, 2024, the City exercised the 2nd and final option to extend the agreement for 12 months. As of June 30, 2024, the value of the subscription liability is $20,385. The City is required to make annual fixed payments. The subscription has an interest rate of
2.0380%.
91 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
G. Subscriptions Payable (Continued)
IPS Group – Smart Parking Meters Software
On Dece
mber 1, 2023, the City entered into a 25-month subscription for the use of IPS Group – Smart Parking Meters Software. An initial subscription liability was recorded in the amount of $95,034. As of June 30, 2024, the value of the subscription liability is $69,149. The City is required to make monthly fixed payments. The subscription has an interest rate of 3.7120%.
LinkedIn Learning Enterprise and License
On Jan
uary 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, 2024, the value of the subscription liability is $33,919. The City is required to make annual fixed payments. The subscription has an interest rate of 2.6560%.
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, 2024, the value of the subscription liability is $173,130. The City is required to make annual fixed payments. The subscription has an interest rate of 2.3660%.
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. The subscription has an interest rate of 2.2750%.
On September 14, 2023, the City sent out a notice of cancellation and this agreement was terminated effective December 31, 2023. As of June 30, 2024, the value of the subscription liability is $0.
Public Input Software
On August
8, 2023, the City entered into a 34-month subscription for the use of Public Input Software. An initial subscription liability was recorded in the amount of $124,578. As of June 30, 2024, the value of the subscription liability is $84,287. The city is required to make annual fixed payments. The subscription has an interest rate of
2.8480%.
Qualtrax Platform
On Jul
y 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, 2024, the value of the subscription liability is $0. The subscription has an interest rate of 2.0240%.
Tyler Software
On Jul
y 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, 2024, the value of the subscription liability is $0. The subscription has an interest rate of 1.7100%. 92 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
G. Subscriptions Payable (Continued)
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. On September 15, 2023, the 12-month extension was exercised, and the contract was extended through September 14, 2024. As of June 30, 2024, the value of the subscription liability is $1,992. The City is required to make monthly fixed payments. The subscription has an interest rate of 3.0720%. The City has 1 extension option for 12 months. The term and initial liability include the one and final extension option. The portion of the subscription attributable to governmental activities, after the allocation attributable to business-type activities of $664, on June 30, 2024, was $1,328.
93 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Governmental Activities (Continued)
H. Debt Service to Maturity
The debt service requirements to maturity for the long-term debts previously described are as follows:
Year Ending
June 30, Principal Interest Total Principal Interest Total 2025 4,660,000$ 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 5,465,000 1,278,794 6,743,794 2,155,000 751,782 2,906,782 2030-2034 27,245,000 2,974,878 30,219,878 7,415,000 2,591,583 10,006,583 2035-2039 1,955,000 88,500 2,043,500 2,350,000 1,730,869 4,080,869 2040-2044 - - - 3,065,000 1,185,782 4,250,782
2045-2049 - - - 3,975,000 441,928 4,416,928
Total 54,480,000$ 11,656,198$ 66,136,198$ 47,340,000$ 12,356,529$ 59,696,529$ Year Ending
June 30, Principal Interest Total Principal Interest Total 2025 864,940$ 96,420$ 961,360$ 9,215,000$ 7,620,288$ 16,835,288$ 2026 801,042 72,814 873,856 9,475,000 7,559,469 17,034,469 2027 659,000 50,896 709,896 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 724,000 10,806 734,806 10,375,000 7,224,972 17,599,972 2030-2034 - - - 61,180,000 33,214,863 94,394,863 2035-2039 - - - 86,610,000 25,291,442 111,901,442 2040-2044 - - - 105,465,000 12,611,877 118,076,877 2045-2049 - - - 23,655,000 677,113 24,332,113
Total 3,740,982$ 262,478$ 4,003,460$ 325,720,000$ 109,046,699$ 434,766,699$ Year Ending
June 30, Principal Interest Total Principal Interest Total 2025 1,319,037$ 223,772$ 1,542,808$ 148,142 9,470$ 157,612$ 2026 1,356,775 189,334 1,546,109 150,157 4,744 154,901 2027 924,982 154,824 1,079,806 - - -
2028 652,520 122,566 775,086 - - -
2029 681,164 97,476 778,640 - - -
2030-2034 2,025,305 148,491 2,173,796 - - -
2035-2039 - - - - - -
2040-2044 - - - - - -
2045-2049 - - - - - -
Total 6,959,783$ 936,462$ 7,896,245$ 298,299$ 14,215$ 312,514$ Year Ending
June 30, Principal Interest Total Principal Interest Total 2025 691,249$ 29,046$ 720,295$ 25,243,367$ 12,159,193$ 37,402,561$ 2026 383,858 17,721 401,579 25,811,832 11,402,290 37,214,121 2027 196,741 6,855 203,595 25,705,723 10,615,086 36,320,809 2028 59,244 2,025 61,269 18,768,764 9,830,502 28,599,266 2029 49,893 853 50,746 19,450,057 9,364,683 28,814,740 2030-2034 - 97,865,305 38,929,815 136,795,120
2035-2039 - - - 90,915,000 27,110,811 118,025,811 2040-2044 - - - 108,530,000 13,797,659 122,327,659 2045-2049 - - - 27,630,000 1,119,041 28,749,041
Total 1,380,985$ 56,499$ 1,437,484$ 439,920,048$ 134,329,080$ 574,249,128$ Total Future Debt ServiceSubscriptions
Certificates of Participation Lease Revenue Bonds
Private Placement Notes Pension-Related Debt*
Financed Purchase Agreements Leases
*Pension-Related Debt amounts contain both governmental activities and business-type activities totals. 94 $
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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, 2024, the outstanding balance is $325,720,000. The bonds are allocated among the various funds on the same basis as the City’s net pension liability. The portion of the bonds attributable to business-type activities, after the allocation attributable to governmental activities of $300,182,736, on June 30, 2024, was $25,537,264. 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, 2024, the outstanding balance was $1,833,251.
C. 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, 2024, the value of the subscription liability is $297,663. The City is required to make annual payments. The subscription has an interest rate of
2.1840%. The portion of the subscription attributable to business-type activities, after the allocation attributable to governmental activities of $149,635, on June 30, 2024, was $148,028. Refer to the debt service requirements to maturity on the previous page for the governmental portion of the subscription.
CXM CMS Software
On September 1, 2023, the City entered into a 24-month subscription for the use of CXM CMS Software. An initial subscription liability was recorded in the amount of $36,702. As of June 30, 2024, the value of the subscription liability is $15,729. The City is required to make annual fixed payments. The subscription has an interest rate of 3.0720%. The City has 1 extension option for 12 months.
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, 2024, the value of the subscription liability is $89,215. The City is required to make annual fixed payments. The subscription has an interest rate of 2.1840%. The City has 5 extension option(s), each for 12 months. The portion of the subscription attributable to business-type activities, after the allocation attributable to governmental activities of $19,039, on June 30, 2024, was $70,176. Refer to the debt service requirements to maturity on the previous page for the governmental portion of the subscription.
95 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Business-Type Activities (Continued)
C. Subscriptions Payable (Continued)
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 $141,772. As of June 30, 2024, the value of the subscription liability is $51,366. The City is required to make annual fixed payments. The subscription has an interest rate of 2.1840%. 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. On September 15, 2023, the 12-month extension was exercised, and the contract was extended through September 14, 2024. As of June 30, 2024, the value of the subscription liability is $1,992. The City is required to make monthly fixed payments. The subscription has an interest rate of 3.0720%. The City has 1 extension option for 12 months. The term and initial liability include the one and final extension option. The portion of the subscription attributable to business-type activities, after the allocation attributable to governmental activities of $1328, on June 30, 2024, was $664. Refer to the debt service requirements to maturity on the previous page for the governmental portion of the subscription.
D. 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 2025 912,054 $ 16,058 $ 928,113 $ - $ - $ - $ 2026 921,197 6,913 928,110 - - -
Total 1,833,251 $ 22,971 $ 1,856,222 $ - $ - $ - $ Year Ending
June 30, Principal Interest Total Principal Interest Total 2025 285,963 $ 6,373 $ 292,336 $ 1,198,018 $ 22,431 $ 1,220,449 $ 2026 - - - 921,197 6,913 928,110
Total 285,963 $ 6,373 $ 292,336 $ 2,119,214 $ 29,344 $ 2,148,559 $ Financed Purchase Agreements Leases
Subscriptions Total Future Debt Service
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 19,010,000$ - $ 1,995,000$ 17,015,000$ 2,075,000$ Premium 3,047,069 - 234,390 2,812,679 -
Total Private Purpose Trust Funds 22,057,069$ - $ 2,229,390$ 19,827,679$ 2,075,000$ 96 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
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, 2024, the outstanding balance was $17,015,000.
The annual debt service requirements for the 2016 Tax Allocation Refunding Bonds outstanding at June 30, 2024, are as follows:
Year Ending
June 30, Principal Interest Total
2025 2,075,000$ 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 880,000 423,950 1,303,950 2030-2034 5,100,000 1,397,750 6,497,750 2035-2039 3,700,000 199,975 3,899,975 Total 17,015,000$ 4,405,650$ 21,420,650$
Pledged Revenues
The Successor Agency has pledged tax revenues to the repayment of the RDA’s 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 RDA’s 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 2024 was $7,600,054 and total debt service of all Tax Allocation Bonds paid was $2,790,100. The bonds 97 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Fiduciary Funds Long-Term Debt (Continued)
A. Tax Allocation Bonds (Continued)
Pledged Revenues (Continued)
req
uired 37% of net distributions. In future years, annual principal and interest payments on the Tax Allocation Bonds are expected to require 86% of Redevelopment Property Tax Trust Fund distributions.
B. Revenue Bonds – Non-City Obligations
The City of Chula Vista and the San Diego Unified Port District (“the Port District”) are currently implementing the Chula Vista Bayfront Master Plan, approved August 2012, to develop approximately 535 acres in Chula Vista adjacent to the San Diego Bay. In April 2018, the City, the Port District and the Developer RIDA Chula Vista, LLC (“RIDA”), entered into a Disposition and Development Agreement for the development of a Resort Hotel and Convention Center (the “RHCC”) on a 36.7-acre site located west of Marina Parkway between G and H Streets in Chula Vista. The site is on tidelands and held in trust by the Port District, which entered into a 66-year Ground Lease Agreement with RIDA. The Port District and the City of Chula Vista created the Chula Vista Bayfront Facilities Financing Authority to assist in financing a portion of the construction of the Convention Center component of the RHCC and related public infrastructure (“Phase 1A Infrastructure Improvements”) through the issuance of revenue bonds. The Authority will sublease the Convention Center to the City of Chula Vista, who will then sublease the Convention Center to RIDA.
In May 2022, the Chula Vista Bayfront Facilities Financing Authority approved the issuance of $372,562,201 in Federally Taxable Revenue Bonds (Series 2022A) to finance a portion of the cost of constructing the Convention Center and issued $10,000,000 in Tax-Exempt revenue Bonds (Series 2022B) to finance a portion of the costs of the Phase 1A Infrastructure Improvements. The Series 2022A and Series 2022B Revenue Bonds have an optional redemption date of June 1, 2026 and a required redemption date of June 1, 2027.
The annual debt service requirements for the Series 2022A and Series 2022B Revenue Bonds outstanding as of June 30, 2024, are as follows:
Year Ending
June 30, Principal Interest Total
2025 -$ 24,724,802$ 24,724,802$
2026 - 28,712,974 28,712,974
2027 382,562,201 28,712,974 411,275,175
Total 382,562,201$ 82,150,751$ 464,712,952$
Ple
dged Revenues
The City , the Bayfront Special Tax District, and the Port District have pledged several revenue streams, totaling an estimated $656.6 million, generated by the RHCC and several nearby properties to repay the Series 2022A and the Series 2022B Revenue Bonds (Payment of principal, redemption premium, if any, and interest).
The City’s pledged revenue streams are as follows:
Transient Occupancy Taxes (“TOT”) attributable to the RHCC (estimated at $325.8 million), and an RV Park Lease in the Bayfront area (estimated at $22.5 million). Sales and Use Tax attributable to the RHCC (estimated at $36.1 million), and an RV Park Lease in the Bayfront area (estimated at $111,000), exclusive of any locally adopted district sales and use taxes (e.g.
Measure A and Measure P tax revenues).
98 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Fiduciary Funds Long-Term Debt (Continued)
B. Revenue Bonds – Non-City Obligations (Continued)
Pledged Revenues (Continued)
Prope
rty Tax Revenue generated by the increased assessed valuation of the RHCC parcels attributable to the development of the RHCC project (estimated at $40.0 million). An amount equivalent to the funds received by the City from the Port District pursuant to Municipal Services Agreement No. 88-2012 between the City and the Port District for the provision of Police, Fire, and Emergency Medical Services in fiscal year 2016 increasing 3% on July 1 of each year, commencing July 1, 2017 (estimated at $144.0 million).
C. Special Assessment Debt – Non-City Obligations
Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured by liens against the assessed properties. The City acts as an agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith, credit, nor the taxing power of the City is pledged to the payment of the bonds. At June 30, 2024, the special assessment debts recorded in custodial funds outstanding were as follows:
Original Outstanding
Amount June 30, 2024
Bayfront Special Tax District Loan 104,415,871$ 103,453,162$ Special Tax Revenue Refunding Bonds, Series 2013 72,100,000 * - Special Tax Revenue Refunding Bonds, Series 2015A 30,460,000 23,190,000 Revenue Refunding Bonds, Series 2015B 43,695,000 25,115,000 CFD 16-1 1A1 12,280,000 10,740,000
CFD 16-1 1A2 11,255,000 11,125,000
Local Agency Revenue Refunding Bonds, Series 2024 32,285,000 ** 32,285,000 Bond Premium 13,214,263 8,446,039
Total 319,705,134$ 214,354,201$
* Defe
ased in Fiscal Year 2023-2024.
**Bonds were issued in Fiscal Year 2023-24 to refund the Special Tax Revenue Refunding Bonds, Series 2013.
D. 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, 2024, the multi-family housing bonds outstanding were as follows:
99 CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 8 – Long-Term Liabilities (Continued)
Fiduciary Funds Long-Term Debt (Continued)
D. Multi-Family Housing Bonds – Non-City Obligations (Continued) Original Outstanding
Amount June 30, 2024
2007 A Ox ford Terrace Apartments 2,276,000$ 1,475,000$ 2007 B Oxford 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 5,338,497
2013 A Congregational Tower 20,540,000 18,157,220
2016 A-1 Duetta Apts Homes 18,675,000 7,348,525
2016 A-3 Duetta Apts Homes junior 725,000 719,000
2016 B-1 Volta Apts Homes 20,925,000 9,344,421
2016 B-3 Volga Apts Homes Junior 775,000 -
2010 A-1 Landings II Senior 11,786,233 9,106,200
2019 A Cordova and Trolley Apartments 6,450,000 3,781,094 2019 Series B-1 St. Regis Park Apartmenrs 13,300,000 12,683,540 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 46,500,000 2021 Series A-2 Columbia Apartments 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 -
Total 186,820,741$ 203,696,120$
Note 9 – Une
arned Revenue
At June 30, 2023, unearned revenue was reported in the amount of $15,638,337 in governmental activities and related to recreation fees, franchise fees, grant program funding, National Opioid Settlements, and Mobile Park Fees received but not expended for allowable costs as of June 30, 2024.
Note 10 – Compensated Absences
The City’s liability for vested and unpaid compensated absences (accrued vacation) has been accrued and amounts to $11,140,531 at June 30, 2024. For the governmental activities claims and judgments and compensated absences are generally liquidated by the general fund and the fleet management internal service fund. In business-type funds, the liabilities are typically liquidated by the Sewer Fund, Development Services Fund, and Other Enterprise Funds. The table and schedule below describe the dollar amount of compensated absences allocated to the different activities and funds, the percentage of liquidation applicable to those funds or activities, and the changes in compensated absences for the year.
100
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 10 – Compensated Absences (Continued)
Percentage of
Balance Liquidation
Governmental Activities
General Fund 10,220,844$ 91.7%
Fleet Management internal service fund 80,964 0.7%
Subtotal - Governmental Activities 10,301,808
Business-Type Activities
Sewer Fund 268,093 2.4%
Development Services Fund 413,081 3.7%
Other Enterprise Funds 157,549 1.4%
Subtotal - Business-Type Activities 838,723
Total Compensated Absences 11,140,531$ 100.0%
Balance Balance Amount
Beginning End Due Within
of Year Additions Deletions of Year One Year
Governmental Activites
Compensated Absences 9,894,562$ 7,507,956$ 7,100,710$ 10,301,808$ 7,444,372$ Business-Type Activities
Compensated Absences 986,242 489,692 637,211 838,723 490,038 Grand Total 10,880,804$ 7,997,648$ 7,737,921$ 11,140,531$ 7,934,410$ Note 11 – Se
lf-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 City’s 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 Administrator for the City’s Workers’ Compensation Program, effective July 1, 2023. The term of this agreement began July 1, 2023, and ends 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, 2024, 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.
101
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 11 – Self-Insurance Accrued Liabilities (Continued)
The City is exposed to various risks of loss related to California government tort liability and participates in pooled insurance coverage, group purchased through Public Risk Innovation, Solutions, and Management (“PRISM”). The City’s Self-Insured Retention (SIR) amount for general liability claims is $500,000 per occurrence. The City maintains excess general liability policies with PRISM, for amounts up to $50 million.
Only the probable amounts of loss as estimated by the City’s liability actuarial consultant, including an estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic financial statements.
There were no reductions in insurance from the prior year and there were no insurance settlements that exceeded coverage in each of the past three years.
The aggregate change in the balance of claims payable for self-insured general liability and worker’s compensation claims as recorded in the Governmental Activities, were as follows:
Year Ended
June 30,
Beginning
Balance
Claims and
Changes in
Estimates Claims Payments Ending Balance
2022 31,007,667$ 4,790,376$ (4,565,636)$ 31,232,407$ 2023 31,232,407 15,508,678 (8,663,212) 38,077,873 2024 38,077,873 4,768,153 (3,096,522) 39,749,504
The City determines that $4,000,000 of the $39,749,504 in self-insured claims to be short term. The liabilities for claims and judgments are typically liquidated from the General Fund. The City has also accrued $1,000,000 related to uninsured liabilities. For more information, refer to Note 14.
Note 12 – Pension Plans
A. California Public Employees’ Retirement Plans
Plan Description
All qualified permanent and probationary employees are eligible to participate in the City’s Miscellaneous Plan or the City’s Safety Plan, both agent multiple-employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS), 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.
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.
102
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – Pension Plans (Continued)
A. California Public Employees’ Retirement Plans (Continued)
Benefits Provided (Continued)
The Plan’s provisions and benefits in effect at June 30, 2024, 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% 7.5%
Employer Contribution rate –
normal cost 16.21% 12.45% 8.67%
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 24.12% 28.7% 13.09%
*Closed to new entrants
103
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – Pension Plans (Continued)
A. California Public Employees’ Retirement Plans (Continued) Benefits Provided (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 28.66% 28.01% 15.56%
Emplo
yees Covered
At June 30, 2024, the following employees were covered by the benefit terms of the plans:
Miscellaneous Plan
Inactive employees or beneficiaries currently receiving benefits 958 Inactive employees entitled to but not yet receiving benefits 767 Active employees 682
Total 2,407
Safety Plan
Inactive employees or beneficiaries currently receiving benefits 419 Inactive employees entitled to but not yet receiving benefits 126 Active employees 383
Total 928
Contri
bution 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. $7,132,923 and $10,189,886 of contributions for the Miscellaneous and Safety Plan respectively, were recognized as a reduction in the net pension liability calculation for fiscal year ending June 30, 2024. 104
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – Pension Plans (Continued)
A. California Public Employees’ Retirement Plans (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2022 valuation was rolled forward to determine the June 30, 2023 total pension liability, based on the following actuarial methods and assumptions:
Actuarial Cost Method Entry Age Normal in accordance with the requirements of GASB 68 Actuarial Assumptions
Discount Rate 6.90%
Inflation 2.50%
Salary Increases Varies 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 Experience 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 Experience 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-ter
m 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 ex pected inflation rate of 2.30% is used for this period. 2 Figures are based on the 2021-22 Asset Liability Management study.
105
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – 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 Plan’s 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)
106
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – 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: 06/30/2022 645,252,726$ 618,832,086$ 26,420,640$ (Valuation Date)
Changes Recognized for the
Measurement Period:
Service Cost 10,867,994 - 10,867,994
Interest on Total Pension Liability 44,385,485 - 44,385,485 Changes of Assumptions - - -
Differences Between Ex pected and
Actual Ex perience 9,417,461 - 9,417,461
Net Plan to Plan Resource Movement - -
Contributions - Employer - 7,132,923 (7,132,923)
Contributions - Employees - 4,484,052 (4,484,052)
Net Investment Income - 37,589,065 (37,589,065)
Benefit Payments, Including Refunds of
Employee Contributions (33,672,591) (33,672,591) -
Administrative Expense - (455,060) 455,060
Net Changes During 2022-23 30,998,349 15,078,389 15,919,960 Balance at: 06/30/2023 676,251,075$ 633,910,475$ 42,340,600$ (Measurement Date)
Safety Plan:
Balance at: 06/30/2022 637,068,159$ 609,975,036$ 27,093,123$ (Valuation Date)
Changes Recognized for the
Measurement Period:
Service Cost 14,872,219 - 14,872,219
Interest on Total Pension Liability 43,864,687 - 43,864,687 Changes of Assumptions - -
Differences Between Ex pected and
Actual Ex perience 6,308,350 - 6,308,350
Net Plan to Plan Resource Movement - -
Contributions - Employer - 10,189,886 (10,189,886)
Contributions - Employees - 5,899,681 (5,899,681)
Net Investment Income - 37,069,780 (37,069,780)
Benefit Payments, Including Refunds of
Employee Contributions (30,185,040) (30,185,040) -
Administrative Expense - (448,547) 448,547
Net Changes During 2022-23 34,860,216 22,525,760 12,334,456 Balance at: 06/30/2023 671,928,375$ 632,500,796$ 39,427,579$ (Measurement Date)
107
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – 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 129,651,009$ 42,340,600$ (29,935,393)$
Safety Plan 134,646,169 39,427,579 (38,166,976)
TOTAL 264,297,178$ 81,768,179$ (68,102,369)$
Pensio
n 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, 2024, the City incurred pension expense of $24,013,668 and $23,720,658 for the Miscellaneous and Safety Plans, respectively. At June 30, 2024, the City had deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred Outflows Deferred Inflows
of Resources of Resources
Miscellaneous Plan
Contributions Subsequent to Measurement Date 5,482,182$ -$ Changes of Assumptions 6,159,102 -
Differences Between Ex pected and Actual Ex perience 6,278,307 (2,191,915) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 35,595,534 -
Subtotal - Miscellaneous Plan 53,515,125 (2,191,915) Safety Plan
Contributions Subsequent to Measurement Date 13,190,777 - Changes of Assumptions 14,116,435 -
Differences Between Ex pected and Actual Ex perience 5,071,419 (7,020,509) Net Difference Between Projected and Actual Earnings on Pension Plan Investments 35,226,196 -
Subtotal - Safety Plan 67,604,827 (7,020,509)
Total - All Plans 121,119,952$ (9,212,424)$
108
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – Pension Plans (Continued)
A. California Public Employees’ Retirement Plans (Continued) Pension Expense and Deferred Outflows and Deferred Inflows of Resources Related to Pensions (Continued) The $5,482,182 and $13,190,777 for the Miscellaneous and Safety Plan, respectively, reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2025. Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Fiscal Years
Ending June 30, Miscellaneous Safety Total
2024 15,034,662$ 10,794,598$ 25,829,260$
2025 9,429,088 9,811,026 19,240,114
2026 20,516,927 24,524,991 45,041,918
2027 860,351 2,139,231 2,999,582
2028 - 123,695 123,695
2029 - - -
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 City’s contributions for each employee (and interest earned by the accounts) are fully vested immediately. The authority to establish or amend the plan’s provisions resides with City Council.
For the year ended June 30, 2024, the City’s total hourly payroll (for eligible PARS members) and covered payroll was $4,315,746. The City made employer contributions of $161,840 (3.75% of current covered payroll), and employees contributed $161,840 (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 City’s financial statements. At June 30, 2024, the balance in the plan was $135,292,176.
D. Deferred Compensation 401A Plan
The City previously offered a deferred compensation plan under Section 401(a) of the Internal Revenue Code to certain employee groups. The plan provided for mandatory employee and City contributions. The City’s contribution for most participating employees was suspended in 2009. The plan is not available for any new employees. The deferred compensation is not available to participants until retirement, death, or unforeseeable 109
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 12 – Pension Plans (Continued)
D. Deferred Compensation 401A Plan (Continued)
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 City’s financial statements. At June 30, 2024, the balance in the plan was $4,629,237.
Note 13 – 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.
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, 2023 (the census date), the benefit terms covered the following employees:
Active 324
Inactive employees or beneficiaries currently receiving benefits 227 Inactive employees entitled to, but not yet receiving benefits - 551
The inf
ormation 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: $1,624,246 (includes implicit subsidy credit) Total OP
EB Liability
The City's total OPEB liability was valued as of June 30, 2023 and was used to calculate the total OPEB liability measured as of June 30, 2024.
Actuarial Assumptions
The total OPEB liability in the June 30, 2024, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified:
110
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 13 – Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued) Projections of the sharing of benefit-related costs are based on an established pattern of practice. Experience studies come from the CalPERS Pension Assumption Model, revised November 17, 2021. Inactive employees (retirees) pay 100% of the cost of benefits. There were no ad hoc post-employment benefit changes (including ad hoc COLAs) to the plan. There were no changes between the measurement date and the report date that are expected to have a significant effect on the net OPEB liability.
Discount Rate
The discount rate used to measure the total OPEB liability is 3.97%. The City's OPEB Plan is an unfunded plan, therefore the discount rate was set to the rate of tax-exempt, high-quality 20-year municipal bonds, as of the valuation date.
Trust Assets
There are no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB 75 to pay related benefits.
Changes in the Total OPEB Liability
The changes in the Total OPEB Liability for the Plan are as follows:
Increase (Decrease)
Total OPEB Liability
Balance at June 30, 2023 27,703,842$
Changes recognized over the measurement period:
Service Cost 1,272,879
Interest 1,087,153
Differences between actual and ex pected experience (5,168,881) Changes of assumptions 262,632
Implicit rate subsidy fulfilled (1,624,246)
Net Changes (4,170,463)
Balance at June 30, 2024 23,533,379$
Measurement Date 6/30/2024
Discount Rate 3.97%
Inflation 2.30%
Health Cost Trend Rates
Pre-Medicare 7.6%*
Medicare N/A
Salary Increases 2.8% **
Mortality Rates Based on CalPERS tables.
* Trending down to 4.04% over 52 years. Applies to calendar years. ** Additional merit-based increases based on CalPERS merit salary increase tables. 111
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 13 – Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued)
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 (2.97%) or one percentage point higher (4.97%) follows:
1% Decrease Discount Rate 1% Increase
2.97% 3.97% 4.97%
Total OPEB Liability 25,053,107$ 23,533,379$ 22,089,270$ Increase (Decrease) 1,519,728 (1,444,109)
% Change 6.5% -6.1%
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 7.60% and decreased to 4.04% over 52 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 (6.60%) or one percentage point higher (8.60%) than current healthcare cost trend rates follows:
1% Decrease 1% Increase
6.60% 7.60% 8.60%
Total OPEB Liability 21,243,869$ 23,533,379$ 26,116,942$ Increase (Decrease) (2,289,510) 2,583,563
% Change -9.7% 11.0%
OPEB Expense and Deferred Outflows and Inflows of Resources Related to OPEB
For the report year ended June 30, 2024, the City recognized an OPEB expense of $2,480,296. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Changes of Assumptions 1,123,811$ (1,792,351)$ Differences Between Ex pected and Actual Ex perience 2,594,143 (3,908,178) Total 3,717,954$ (5,700,529)$
Amounts reported as deferred outflows or deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:
112
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 13 – Post Retirement Health Benefits (Continued)
A. Defined Benefit Other-Post Employment Benefits Plan (Continued) Fiscal Years
Ending June 30,
Deferred
Outflows/(Inflows)
of Resources
2025 167,225$
2026 (688,587)
2027 (1,273,914)
2028 (187,299)
2029 -
Remaining -
The ef
fects 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), beginning in the current period. The expected average remaining service lives (EARSL) for the current period is 4.1 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 Employee’s 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, 2024, the balance of the assets held by the trustee for this plan was $1,997,651.
Note 14 – 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 City’s insurance programs are sufficient to cover most potential losses should an unfavorable outcome materialize. Although the City’s insurance programs are expected to cover most potential losses, there may be matters of litigation that are not covered by the City’s insurance programs. Of those potential uninsured matters, the City estimates $1,000,000 is probable and has included this amount as part of the claims and judgments liabilities on the government-wide statement of net position.
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, US. Department of Homeland Security, National Highway Traffic Safety Administration and the Executive Office of the President. Receipts from these grant programs are subject to audit to ensure that the funds were used in compliance with relevant statutes, grant terms and regulations. The City anticipates that this audit will not result in any significant liabilities.
113
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 14 – Commitments and Contingencies (Continued)
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 Encumb
rances
At June 30, 2024, there were encumbrances of $23,928,642 in the General Fund, $5,715,719 in the Federal, State, and Local Grants Fund, $1,427 in the Housing Successor Agency, $17,109,683 in the Development Impact Fee Fund, $19,811,402 in the Sewer Fund, $127,176 in the Development Services Fund, $65,040 in the Sewer Development Impact Fees Fund, and $38,120,403 in the Non-Major Funds.
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.
Pollution Remediation Obligations
The United States Fish and Wildlife Service (“FWS”) has asserted an administrative claim under the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) against the City arising out of environmental contamination at the Sweetwater Marsh Unit of the San Diego Bay National Wildlife Refuge in National City and Chula Vista (the “Site”). The Site consists of three operable units (“OU”) each of which is alleged to have been impacted by historical activities including construction, dumping, and manufacturing. Site cleanup will mainly consist of soil excavation and disposal. The FWS has engaged with the City and other potentially responsible parties at the Site in an attempt to evaluate respective liabilities. There are multiple other potentially responsible parties for cleanup costs at each of the OUs. Although the FWS estimated the costs of cleanup several years ago, the City’s potential liability is not reasonably estimable. The FWS issued Engineering Evaluation/Cost Analyses (“EE/CA”), which contained cleanup cost estimates, for each of the three OUs in 2017. However, the City considers these estimates unreliable because they are not final determinations of the cleanup action nor the associated costs; due to the lapse of time since they were issued; and recent inflation. The City anticipates the FWS will update the cost estimates and finalize cleanup plans in forthcoming administrative documents. Moreover, the City is contesting its liability at the Site and any potential liability would be subject to allocation among the City and the other potentially responsible parties.
114
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 15 – Classification and Fund Balances
Major Funds
Federal, State, Housing Other
General and Local Grants Successor Development Governmental Fund Fund Agency Impact Fund Funds Total
Nonspendable
Prepaid costs 225,820$ 43,352$ -$ -$ 4
57,491$ 726,663
Due from Successor Agency of Chula Vista RDA 2,245,527 - - - - 2,245,527 Advances to other funds 1,380,956 - - - - 1,380,956 Total Nonspendable 3,852,303 43,352 - - 457,491 4,353,146 Restricted
Section 115 Trust for Pension 28,369,808 - - - - 28,369,808 Cultural Arts - 13,416 - - - 13,416
Environmental Services - 1,625,793 - - - 1,625,793 Federal Grants - 1,453,232 - - - 1,453,232
State Grants - 8,190,480 - - - 8,190,480
Local Grants - 4,872,257 - - - 4,872,257
Community and housing development - - 14,741,072 - - 14,741,072 Public facilities - - - 18,359,422 - 18,359,422 Drainage facilities - - - 3,208,090 - 3,208,090 Pedestrian Bridge DIF - - - 5,091,582 - 5,091,582 Traffic signal and safety - - - 1,275,152 - 1,275,152 Transportation improvements - - - 56,187,180 55,583,875 111,771,055 HOME Program - - - - 6,002,373 6,002,373
CDBG Programs - - - - 83,923 83,923
Park acquisitions and development - - - - 47,792,583 47,792,583 Parking meter services - - - - 1,358,678 1,358,678 Public Educational & Govt. Fee - - - - 433,662 433,662 Debt Service - - - - 5,313,365 5,313,365
Developer Contributions - - - - 18,913,511 18,913,511 Donations - - - - 594,758 594,758
National Opioid Settlement - - - - 144,546 144,546 Industrial Development - - - - 58 58
LRBs - - - - 7,412 7,412
Storm drains - - - - 3,009,887 3,009,887
Open space maintenance - - - - 60,349,253 60,349,253 Telecom Utility Tax - - - - 108,121 108,121
Mobile home admin fee - - - - 210,616 210,616
Assessment district improvements - - - - 1,171,660 1,171,660 Town Center I - - - - 272,582 272,582
Total Restricted 28,369,808 16,155,178 14,741,072 84,121,426 201,350,863 344,738,347 Committed
Economic contingency 9,094,483 - - - - 9,094,483
Catastrophic events contingency 5,456,690 - - - - 5,456,690 Measure A Reserve 4,340,757 - - - - 4,340,757
Pension Reserve 7,091,122 7,091,122
OPEB Reserve 868,200 - - - - 868,200
Bond Call Fund 2,604,601 - - - - 2,604,601
Total Committed 29,455,853 - - - - 29,455,853 Assigned
3,000 - - - - 3,000
2,688 - - - - 2,688
129,045 - - - - 129,045
7,082 - - - - 7,082
10,344 - - - - 10,344
16,936 - - - - 16,936
5,782,369 - - - - 5,782,369
20,073 - - - - 20,073
155,715 - - - - 155,715
555 - - - - 555
120,393 - - - - 120,393
283,564 - - - - 283,564
518,166 - - - - 518,166
1,637 - - - - 1,637
34,745,134 - - - - 34,745,134
49,312,754 - - - - 49,312,754
Boards and Commissions
City Clerk
City Attorney
Information Technology Services Department
Human Resources
Finance Department
Non-Departmental
Animal Services
Economic Development
Development Services
Engineering
Fire Department
Public Works Department
Recreation Department
Measure P Sales Tax
Measure A Sales Tax
ALS
457,709 - - - - 457,709
Bay
front Lease Revenue 455,680 - - - - 455,680
Flexible Spending Account 1,257,879 - - - - 1,257,879 Public liability 4,801 - - - - 4,801
Total Assigned 93,284,726 - - - - 93,284,726 Unassigned 25,853,339 - - - (2,070,068) 23,783,271 Total Fund Balances 180,816,029$ 16,198,530$ 14,741,072$ 84,121,426$ 199,738,286$ 495,615,343$ 115
$
CITY OF CHULA VISTA
Notes to Basic Financial Statements (Continued)
For the Fiscal Year Ended June 30, 2024
Note 16 – Restatements of Fund Balance and Net Position A. Correction of Errors in Previously Issued Financial Statements For the fiscal year ended June 30, 2024, the City determined the financing costs on its Interfund Loans was not calculated according to the City’s existing Interfund Loan policy. Therefore, the balances of Advances to other funds and Investment earnings (cumulative) reported for the Sewer Fund were understated by $644,335 as of June 30, 2023. In addition, the balances of Advances from other funds and Interest expense (cumulative) reported for the Sewer Development Impact Fees fund was understated by $644,335 as of June 30, 2023. The effect of correcting this error is shown in the table below.
For the fiscal year ended June 30, 2024, the City determined a correction was needed regarding the prior years’ implementation of GASB Statement No. 84 for two Custodial Funds. For the two funds, the City operates as a custodian for the collections for and payments of debt. In the Bayfront Special Tax District fund, the balance in Loans Payable (due within one year) was overstated by $550,000 and the balance in Loans Payable (due in more than one year) was overstated by $103,387,814 as of June 30, 2023. In the CV Bayfront Facilities Financing Authority fund, the balance in Notes and loans receivables was overstated by $103,937,814, the balance in Capital assets, not being depreciation was overstated by $135,822,432, and the balance of Bonds Payable was overstated by $202,789,453 as of June 30, 2023. The effect of correcting this error is shown in the table below.
For the year ended June 30, 2024, error corrections resulted in adjustments to and restatements of beginning net position and fund net position, as follows:
Sewer Fund
Sewer
Development
Impact Fees
Bayfront Special
Tax District
CV Bayfront
Facilities Financing
Authority
Net Position (Deficit), as previously reported 293,911,415$ (12,737,646)$ (103,693,329)$ 121,231,324$ Error correction 644,335 (644,335) 103,937,814 (36,970,793) Net Position (Deficit), as restated 294,555,750$ (13,381,981)$ 244,485$ 84,260,531$ Enterprise Funds Custodial Funds
Reporting Units Affected by Adjustments to and Restatements of Beginning Balances 116
REQUIRED SUPPLEMENTARY
INFORMATION
117
118
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 53,194,174$ 53,194,174$ 53,194,174$ -$ Encumbrances, Prior Year - 2,701,089 2,701,089 -
Resources (Inflow):
Taxes 214,639,286 220,525,551 220,504,491 (21,060)
Licenses and permits 1,994,842 2,256,473 2,256,473 - Intergovernmental 1,401,690 1,091,968 1,112,817 20,849 Charges for services 19,258,526 20,076,620 19,200,887 (875,733) Use of money and property 3,881,520 6,283,034 8,838,236 2,555,202 Fines and forfeitures 1,049,221 1,033,217 1,033,217 - Miscellaneous 2,521,266 6,743,222 7,619,170 875,948
Transfers in 13,475,810 32,484,011 32,484,010 (1)
Amounts Available for Appropriations 311,416,335 346,389,359 348,944,564 2,555,205 Charges to Appropriations (Outflow):
Current
General government:
City council 1,524,206 1,498,534 1,498,529 5
City clerk 3,428,932 3,040,257 3,040,257 -
City attorney 3,169,303 2,767,693 2,767,693 -
Administration 2,591,692 2,419,713 2,419,713 -
Information technology 4,457,481 4,588,173 4,586,912 1,261 Human resources 3,526,095 3,439,598 3,439,598 -
Finance 4,699,655 4,524,616 4,524,616 -
Non-departmental 9,077,837 15,646,639 15,525,698 120,941 Boards and commissions 2,088 4,376 4,376 -
Public Safety:
55,376,776 59,113,254 59,113,246 8
34,427,946 36,027,490 36,015,521 11,969
Police
Fire
Animal services
3,191,270 3,167,724 3,167,724 -
Community development:
Economic development 1,646,858 1,676,756 1,676,756 - Development services 2,754,043 2,675,434 2,675,434 - Parks and recreation 4,302,988 5,125,223 5,125,218 6 Public Works:
Public works 22,800,342 22,665,251 22,578,644 86,607 Engineering 10,492,112 10,106,195 10,106,195 -
Library 3,805,683 3,473,172 3,473,172 -
Capital outlay 192,806 702,969 654,230 48,739
Debt service:
Principal retirement - - - -
Interest and fiscal charges - - - -
Transfers out 86,754,048 112,838,570 112,838,569 1
Total Charges to Appropriations 258,222,161 295,501,637 295,232,102 269,535 Budgetary fund Balance, June 30 53,194,174$ 50,887,722$ 53,712,462$ 2,824,740$ The notes to required supplementary information are an integral part of this schedule. 119
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
Bayfront Lease Revenue
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
519,111$ 519,111$ 519,111$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,045,827 2,045,827 1,952,914 (92,913)
2,564,938 2,564,938 2,472,025 (92,913)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,092,981 2,092,981 2,016,345 76,636
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
(47,155) - - -
- - - -
- - - -
- - - -
2,045,826 2,092,981 2,016,345 76,636
519,112$ 471,957$ 455,680$ (16,277)$
The notes to required supplementary information are an integral part of this schedule. 120
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
2016 Measure P Sales Tax
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
17,090,650$ 17,090,650$ 17,090,650$ -$
- 8,130,631 8,130,631 -
- - - -
- - - -
- - - -
- - - -
- - 1,670,811 1,670,811
- - - -
- - 108,745 108,745
27,515,846 29,183,788 29,183,788 -
44,606,496 54,405,069 56,184,625 1,779,556
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
492,725 1,699,170 430,879 1,268,291
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
7,225,901 55,415,225 24,385,741 31,029,484
1,200,045 1,231,799 1,189,955 41,844
95,454 114,411 85,368 29,043
7,513,397 7,518,029 7,518,029 -
16,527,522 65,978,634 33,609,972 32,368,662
28,078,974$ (11,573,565)$ 22,574,653$ 34,148,218$ The notes to required supplementary information are an integral part of this schedule. 121
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
2018 Measure A Sales Tax
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
48,935,284$ 48,935,284$ 48,935,284$ -$
- 2,507,515 2,507,515 -
- - - -
- - - -
83,334 83,334 83,334 -
- - 436 436
40,000 40,000 40,335 335
- - - -
- - 23,328 23,328
27,515,604 29,293,239 29,383,514 90,275
76,574,222 80,859,372 80,973,746 114,374
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
12,701,472 12,973,198 12,397,328 575,870
9,750,839 10,943,634 10,669,455 274,179
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
1,500,000 5,135,452 4,431,108 704,344
- - - -
- - - -
2,453,961 2,474,165 2,473,966 199
26,406,272 31,526,449 29,971,858 1,554,591
50,167,950$ 49,332,923$ 51,001,888$ 1,668,965$ The notes to required supplementary information are an integral part of this schedule. 122
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
Advanced Life Support Program
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
489,474$ 489,474$ 489,474$ -$
- 62,792 62,792 -
- - - -
- - - -
214,000 214,000 - (214,000)
- - - -
- - - -
- - - -
- 60,000 174,874 114,874
2,295,522 2,502,280 2,217,647 (284,633)
2,998,996 3,328,546 2,944,787 (383,759)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
120,531 120,531 - 120,531
- - - -
- - - -
- - - -
1,090,934 1,151,472 1,080,074 71,398
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
193,469 525,480 274,055 251,426
- - - -
- - - -
1,317,140 1,317,140 1,317,128 12
2,722,074 3,114,623 2,671,257 443,366
276,922$ 213,923$ 273,530$ 59,607$
The notes to required supplementary information are an integral part of this schedule. 123
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
Section 115 Trust
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
19,132,300$ 19,132,300$ 19,132,300$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- 11,650 1,409,977 1,398,327
- - - -
- - - -
10,848,629 10,848,629 11,500,446 651,817
29,980,929 29,992,579 32,042,723 2,050,144
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 91,650 91,650 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- 91,650 91,650 -
29,980,929$ 29,900,929$ 31,951,073$ 2,050,144$ The notes to required supplementary information are an integral part of this schedule. 124
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
Public Liability Trust
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
397,400$ 397,400$ 397,400$ -$
- 83,644 83,644 -
- - - -
- - - -
- - - -
- - 137 137
- - - -
- - - -
- 135,662 135,662 -
2,484,078 2,886,581 2,625,313 (261,268)
2,881,478 3,503,287 3,242,156 (261,131)
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,484,078 3,445,696 3,445,695 1
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
2,484,078 3,445,696 3,445,695 1
397,400$ 57,591$ (203,539)$ (261,130)$
The notes to required supplementary information are an integral part of this schedule. 125
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
Eliminating Entries
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
-$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
(70,496,945) (74,829,537) (74,829,537) -
(70,496,945) (74,829,537) (74,829,537) -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
(70,496,945) (74,829,537) (74,829,537) -
(70,496,945) (74,829,537) (74,829,537) -
-$ -$ -$ -$
The notes to required supplementary information are an integral part of this schedule. 126
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Budgetary Fund Balance, July 1
Encumbrances, Prior Year
Resources (Inflow):
Taxes
Licenses and permits
Intergovernmental
Charges for services
Use of money and property
Fines and forfeitures
Miscellaneous
Transfers in
Amounts Available for Appropriations
Charges to Appropriations (Outflow):
Current
General government:
City council
City clerk
City attorney
Administration
Information technology
Human resources
Finance
Non-departmental
Boards and commissions
Public Safety:
Police
Fire
Animal services
Community development:
Economic development
Development services
Parks and recreation
Public Works:
Public works
Engineering
Library
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Transfers out
Total Charges to Appropriations
Budgetary fund Balance, June 30
(CONTINUED)
Total General Fund
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
139,758,393$ 139,758,393$ 139,758,393$ -$
- 13,485,671 13,485,671 -
214,639,286 220,525,551 220,504,491 (21,060)
1,994,842 2,256,473 2,256,473 -
1,699,024 1,389,302 1,196,151 (193,151)
19,258,526 20,076,620 19,201,460 (875,160)
3,921,520 6,334,684 11,959,359 5,624,675
1,049,221 1,033,217 1,033,217 -
2,521,266 6,938,884 8,061,779 1,122,895
15,684,371 34,414,818 34,518,095 103,277
400,526,449 446,213,613 451,975,089 5,761,476
1,524,206 1,498,534 1,498,529 5
3,428,932 3,040,257 3,040,257 -
3,169,303 2,767,693 2,767,693 -
2,591,692 2,419,713 2,419,713 -
4,457,481 4,588,173 4,586,912 1,261
3,526,095 3,439,598 3,439,598 -
9,889,970 11,974,644 10,509,185 1,465,459
9,077,837 15,646,639 15,525,698 120,941
2,088 4,376 4,376 -
68,078,248 72,086,452 71,510,574 575,878
45,269,719 48,122,596 47,765,050 357,546
3,191,270 3,167,724 3,167,724 -
1,646,858 1,676,756 1,676,756 -
2,754,043 2,675,434 2,675,434 -
4,302,988 5,125,223 5,125,218 6
22,800,342 22,665,251 22,578,644 86,607
10,492,112 10,106,195 10,106,195 -
3,805,683 3,473,172 3,473,172 -
9,065,021 61,779,126 29,745,134 32,033,992
1,200,045 1,231,799 1,189,955 41,844
95,454 114,411 85,368 29,043
27,541,601 49,318,367 49,318,155 212
237,910,988 326,922,133 292,209,341 34,712,792
162,615,461$ 119,291,480$ 159,765,748$ 40,474,268$ The notes to required supplementary information are an integral part of this schedule. 127
128
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
FEDERAL, STATE, AND LOCAL GRANTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (11,727,250)$ (11,727,250)$ (11,727,250)$ -$ Encumbrances, Prior Year - 31,818,766 31,818,766 -
Resources (Inflow):
Intergovernmental 57,822,155 104,708,742 78,401,946 (26,306,796) Charges for services 1,588,455 1,638,455 2,275,107 636,652 Use of money and property (1,520,703) (1,520,703) 3,704,797 5,225,500 Miscellaneous 120,000 120,000 204,336 84,336
Transfers in 86,299 136,470 118,533 (17,937)
Amounts Available for Appropriations 46,368,956 125,174,480 104,796,235 (20,378,245) Charges to Appropriations (Outflow):
Current
General government:
Finance 1,133,559 3,481,607 3,002,316 479,291
Public Safety:
4,268,122 12,895,612 11,071,144 1,824,468
286,975 1,938,331 1,610,469 327,862
Police
Fire
Animal services
- 172,723 69,341 103,382
Community development:
Economic development 492,931 450,752 432,867 17,885
Development services - 18,610,613 6,176,190 12,434,423 Public Works:
Public works 2,749,796 4,948,533 4,058,701 889,832
Library - 183,789 152,026 31,763.00
Capital outlay 23,111,092 83,619,531 40,516,957 43,102,574 Transfers out 24,077,562 32,094,412 26,499,809 5,594,603 Total Charges to Appropriations 56,120,037 158,395,903 93,589,819 64,806,084 Budgetary fund Balance, June 30 (9,751,081)$ (33,221,423)$ 11,206,416$ 44,427,839$ Budget Amounts
The notes to required supplementary information are an integral part of this schedule. 129
130
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE
HOUSING SUCCESSOR AGENCY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 13,667,848$ 13,667,848$ 13,667,848$ -$ Encumbrances, Prior Year - 1,427 1,427 -
Resources (Inflow):
Use of money and property 215,000 215,000 1,189,034 974,034 Miscellaneous 255,000 255,000 148,739 (106,261)
Amounts Available for Appropriations 14,137,848 14,139,275 15,007,048 867,773 Charges to Appropriations (Outflow):
Current
General government:
Development services 2,072,400 3,023,827 97,833 2,925,994 Transfers out 9,858 9,858 5,110 4,748
Total Charges to Appropriations 2,082,258 3,033,685 102,943 2,930,742 Budgetary fund Balance, June 30 12,055,590$ 11,105,590$ 14,904,105$ 3,798,515$ Budget Amounts
The notes to required supplementary information are an integral part of this schedule. 131
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
2015 2016 2017 2018 2019
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
TOTAL PENSION LIABILITY
Service Cost 8,696,183$ 8,570,421$ 8,451,918$ 9,370,865$ 9,048,165$ Interest 32,359,841 34,103,210 35,618,575 36,639,997 37,305,907 Difference Between Expected and Actual Experience - 925,960 (2,524,995) (6,331,454) (8,223,685) Changes of Assumptions - (8,500,698) - 30,693,812 (4,314,060) Benefit Payments, Including Refunds of Employee Contributions (18,639,387) (19,539,333) (21,022,078) (23,072,106) (24,924,595) Net Change in Total Pension Liability 22,416,637 15,559,560 20,523,420 47,301,114 8,891,732 Total Pension Liability - Beginning 436,436,153 458,852,790 474,412,350 494,935,770 542,236,884 Total Pension Liability - Ending (a) 458,852,790 474,412,350 494,935,770 542,236,884 551,128,616
PLAN FIDUCIARY NET POSITION
Contribution - Employer 9,134,182 13,499,144 12,461,946 13,663,149 14,479,069 Contribution - Employee 4,555,300 3,679,749 3,764,641 3,536,418 3,603,297 Plan to Plan Resource Movement - 5,268 - - (874)
Net Investment Income 48,303,496 7,195,063 1,747,676 36,763,992 30,032,849 Benefit Payments, Including Refunds of Employee Contributions (18,639,387) (19,539,333) (21,022,078) (23,072,106) (24,924,595) Administrative Expense - (368,694) (199,512) (478,539) (552,457) Other Miscellaneous Income/(Expense) - - - - (1,049,125) Net Change in Fiduciary Net Position 43,353,591 4,471,197 (3,247,327) 30,412,914 21,588,164 Plan Fiduciary Net Position - Beginning 279,540,671 322,894,262 327,365,459 324,118,132 354,531,046 Plan Fiduciary Net Position - Ending (b) 322,894,262 327,365,459 324,118,132 354,531,046 376,119,210 Plan Net Pension Liability/(Assets) - Ending (a) - (b) 135,958,528$ 147,046,891$ 170,817,638$ 187,705,838$ 175,009,406$
70.37% 69.00% 65.49% 65.38% 68.25%
Covered Payroll 42,760,249$ 44,135,521$ 45,990,463$ 44,435,640$ 44,578,340$ 317.96% 333.17% 371.42% 422.42% 392.59%
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.
The notes to required supplementary information are an integral part of this schedule. 132
2020 2021 2022 2023 2024
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
8,696,267$ 8,953,165$ 9,145,103$ 10,380,919$ 10,867,994$ 38,721,727 40,325,600 41,542,929 42,332,179 44,385,485 (413,302) 2,562,816 (3,234,587) (6,575,745) 9,417,461 - - - 18,477,304 -
(27,001,672) (28,353,268) (29,875,845) (31,559,480) (33,672,591) 20,003,020 23,488,313 17,577,600 33,055,177 30,998,349 551,128,616 571,131,636 594,619,949 612,197,549 645,252,726 571,131,636 594,619,949 612,197,549 645,252,726 676,251,075 16,244,599 18,211,675 205,182,523 6,529,685 7,132,923 3,592,996 3,800,444 3,856,589 4,348,890 4,484,052 - - - 2,001 -
24,600,973 19,625,933 106,512,033 (51,347,007) 37,589,065 (27,001,672) (28,353,268) (29,875,845) (31,559,480) (33,672,591) (268,407) (554,440) (405,588) (430,632) (455,060)
874 - - - -
17,169,363 12,730,344 285,269,712 (72,456,543) 15,078,389 376,119,210 393,288,573 406,018,917 691,288,629 618,832,086 393,288,573 406,018,917 691,288,629 618,832,086 633,910,475 177,843,063$ 188,601,032$ (79,091,080)$ 26,420,640$ 42,340,600$
68.86% 68.28% 112.92% 95.91% 93.74%
45,798,549$ 47,627,626$ 48,617,605$ 55,375,215$ 57,341,438$ 388.32% 395.99% -162.68% 47.71% 73.84%
The notes to required supplementary information are an integral part of this schedule. 133
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
2015 2016 2017 2018 2019
Measurement Date 6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018
TOTAL PENSION LIABILITY
Service Cost 10,220,233$ 9,646,806$ 9,971,492$ 11,594,959$ 12,044,725$ Interest 28,334,465 29,979,452 31,658,073 33,213,616 34,751,830 Difference Between Expected and Actual Experience - 460,215 768,421 (1,210,352) (307,813) Changes of Assumptions - (7,813,969) - 29,393,364 (2,112,530) Benefit Payments, Including Refunds of Employee Contributions (15,869,862) (17,767,853) (19,460,670) (20,397,814) (21,801,437) Net Change in Total Pension Liability 22,684,836 14,504,651 22,937,316 52,593,773 22,574,775 Total Pension Liability - Beginning 380,617,699 403,302,535 417,807,186 440,744,502 493,338,275 Total Pension Liability - Ending (a) 403,302,535 417,807,186 440,744,502 493,338,275 515,913,050
PLAN FIDUCIARY NET POSITION
Contribution - Employer 11,684,174 7,555,357 10,971,712 11,670,017 13,529,290 Contribution - Employee 3,157,921 3,230,989 3,420,273 3,620,014 3,804,814 Plan to Plan Resource Movement 47,649,285 6,999,744 1,664,170 35,554,749 29,258,121 Net Investment Income (15,869,862) (17,767,853) (19,460,670) (20,397,814) (21,801,437) Benefit Payments, Including Refunds of Employee Contributions - (359,830) (194,899) (466,842) (539,438) Administrative Expense - - - - (858)
Other Miscellaneous Income/(Expense) - - - - (1,024,401) Net Change in Fiduciary Net Position 46,621,518 (341,593) (3,599,414) 29,980,124 23,226,091 Plan Fiduciary Net Position - Beginning 273,515,399 320,136,917 319,795,324 316,195,910 346,176,034 Plan Fiduciary Net Position - Ending (b) 320,136,917 319,795,324 316,195,910 346,176,034 369,402,125 Plan Net Pension Liability/(Assets) - Ending (a) - (b) 83,165,618$ 98,011,862$ 124,548,592$ 147,162,241$ 146,510,925$
79.38% 76.54% 71.74% 70.17% 71.60%
Covered Payroll 34,243,101$ 34,117,846$ 37,174,663$ 37,817,316$ 39,384,099$ 242.87% 287.27% 335.04% 389.14% 372.01%
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.
The notes to required supplementary information are an integral part of this schedule. 134
2020 2021 2022 2023 2024
6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023
12,267,031$ 12,575,630$ 13,253,770$ 14,319,314$ 14,872,219$ 36,853,969 38,422,153 39,881,546 41,558,338 43,864,687 4,868,911 (3,779,764) (6,175,468) (6,077,244) 6,308,350 - - - 23,527,391 -
(22,950,693) (24,175,102) (25,325,483) (27,889,190) (30,185,040) 31,039,218 23,042,917 21,634,365 45,438,609 34,860,216 515,913,050 546,952,268 569,995,185 591,629,550 637,068,159 546,952,268 569,995,185 591,629,550 637,068,159 671,928,375 15,445,861 17,861,917 183,166,596 10,002,548 10,189,886 3,966,723 4,257,612 4,884,978 5,197,226 5,899,681 24,248,349 19,386,578 - (2,001) -
(22,950,693) (24,175,102) 104,361,444 (50,226,472) 37,069,780 (263,613) (549,592) (25,325,483) (27,889,190) (30,185,040) - - (406,200) (419,433) (448,547)
858 - - - -
20,447,485 16,781,413 266,681,335 (63,337,322) 22,525,760 369,402,125 389,849,610 406,631,023 673,312,358 609,975,036 389,849,610 406,631,023 673,312,358 609,975,036 632,500,796 157,102,658$ 163,364,162$ (81,682,808)$ 27,093,123$ 39,427,579$
71.28% 71.34% 113.81% 95.75% 94.13%
40,374,060$ 37,732,745$ 39,655,225$ 47,183,733$ 48,967,579$ 389.12% 432.95% -205.98% 57.42% 80.52%
The notes to required supplementary information are an integral part of this schedule. 135
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%
2024 5,482,182 5,482,182 - 60,735,461 9.03%
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%
2024 13,190,777 13,190,777 - 56,063,284 23.53%
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.
The notes to required supplementary information are an integral part of this schedule. 136
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 2024
TOTAL OPEB LIABILITY
Service cost 825,786$ 819,100$ 921,271$ 1,468,936$ 1,647,777$ 1,255,377$ 1,272,879$ Interest on the total OPEB liability 495,822 549,699 516,371 636,356 533,534 1,031,876 1,087,153 Difference between expected and actual experience 4,128 - 5,786,481 - 2,804,304 - (5,168,881) Change of assumptions 183,361 504,190 2,640,687 751,555 (3,029,111) (550,759) 262,632 Implicit rate subsidy fulfilled (536,155) (634,315) (724,009) (1,148,517) (1,293,716) (1,482,784) (1,624,246) Net change in total OPEB liability 972,942 1,238,674 9,140,801 1,708,330 662,788 253,710 (4,170,463) Total OPEB Liability - Beginning 13,726,597 14,699,539 15,938,213 25,079,014 26,787,344 27,450,132 27,703,842 Total OPEB Liability - Ending 14,699,539$ 15,938,213$ 25,079,014$ 26,787,344$ 27,450,132$ 27,703,842$ 23,533,379$ 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% 0.00% Covered-employee payroll 53,738,469$ 55,216,277$ 56,734,725$ 58,294,930$ 42,628,588$ 40,763,648$ 44,262,192$ Total OPEB liability as a percentage of covered-employee payroll 27.35% 28.87% 44.20% 45.95% 64.39% 67.96% 53.17% 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. 137
CITY OF CHULA VISTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED JUNE 30, 2024
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 department's budget request for the next fiscal year, a detailed review of each department's proposed budget by the City Manager, and 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 general 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 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 project 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 .
Reported budget figures are as originally adopted or subsequently amended plus prior year continuing 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, 2024, 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. 138
CITY OF CHULA VISTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2024
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, 2024
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, 2024
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, 2024 General
Fund
Net Change in Fund Balance - GAAP Basis $ 30,943,572 Add (Deduct):
GASB 31 Fair Market Value (241,791)
Encumbrances (10,442,972)
Flex ible Spending Account (251,454)
Net Change in Fund Balance - Budgetary Basis $ 20,007,355 Housing
Successor
Agency
Net Change in Fund Balance - GAAP Basis $ 1,150,554
Add (Deduct):
GASB 31 Fair Market Value 85,703
Net Change in Fund Balance - Budgetary Basis $ 1,236,257 Federal, State, and
Local Grants
Net Change in Fund Balance - GAAP Basis $ (3,563,542) Add (Deduct):
GASB 31 Fair Market Value 394,162
Encumbrances 26,103,046
Net Change in Fund Balance - Budgetary Basis $ 22,933,666 139
CITY OF CHULA VISTA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2024
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, 2024 were derived from the June 30, 2020 funding valuation report.
Actuarial Cost Method: Entry Age Normal
Amortization Method/Period: For details, see the June 30, 2020 funding valuation report, available at CalPERS' website
Asset Valuation Method: Market Value of Assets
Inflation: 2.50 percent
Salay Increases: V aries by Entry Age and Service
Payroll Growth: 2.75 percent
Investment Rate of Return: 7.00 percent, net of investment and administrative ex penses Retirement Age: The probabilities of retirement are based on the 2017 CalPERS Ex perience Study for the period of 1997 to 2015.
Mortality: The probabilities of mortality are based on the 2017 CalPERS Ex perience Study for the period of 1997 to 2015.
Pre-retirement and post-retirement mortality rates include 15 years of projected mortality improvement using 90.00 percent of Scale MP-2016 published by the Society of Actuaries.
140
SUPPLEMENTARY INFORMATION
141
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Current:
City council
Personnel Services 1,417,040$ 1,417,035$ 5$
Supplies and Services 80,976 80,976 -
Utilities 518 518 -
Total City council 1,498,534 1,498,529 5
City clerk
Personnel Services 1,173,631 1,173,631 -
Supplies and Services 1,866,052 1,866,052 -
Utilities 574 574 -
Total City clerk 3,040,257 3,040,257 -
City attorney
Personnel Services 1,832,744 1,832,744 -
Supplies and Services 934,077 934,077 -
Utilities 872 872 -
Total City attorney 2,767,693 2,767,693 -
Administration
Personnel Services 2,186,091 2,186,091 -
Supplies and Services 232,709 232,709 -
Utilities 913 913 -
Total Administration 2,419,713 2,419,713 -
Information technology
Personnel Services 2,893,410 2,893,410 -
Supplies and Services 1,692,712 1,691,451 1,261
Utilities 1,586 1,586 -
Internal Service 465 465 -
Total Information technology 4,588,173 4,586,912 1,261 Human resources
Personnel Services 2,856,346 2,856,346 -
Supplies and Services 581,537 581,537 -
Utilities 1,715 1,715 -
Total Human resources 3,439,598 3,439,598 -
Finance
Personnel Services 4,242,931 4,242,931 -
Supplies and Services 3,180,646 1,789,271 1,391,375
Utilities 1,661 1,661 -
Other Expenses 4,549,406 4,475,321 74,085
Total Finance 11,974,644 10,509,185 1,465,459
Non-departmental
Personnel Services 544,976 544,976 -
Supplies and Services 8,631,826 8,510,885 120,941
Utilities 39,184 39,184 -
Other Expenses 6,430,653 6,430,653 -
Total Non-departmental 15,646,639 15,525,698 120,941
Board and commissions
Supplies and Services 4,376 4,376 -
Total Board and commissions 4,376 4,376 -
Police
Personnel Services 64,737,863 64,407,670 330,193
Supplies and Services 4,310,716 4,126,409 184,307
Utilities 861,182 861,182 -
Other Expenses 675,139 675,139 -
Internal Service 1,501,552 1,440,174 61,378
Total Police 72,086,452 71,510,574 575,878
Fire
Personnel Services 41,333,198 41,263,339 69,859
Supplies and Services 4,131,804 3,855,354 276,450
Utilities 355,254 355,254 -
Other Expenses 551,937 547,182 4,755
Internal Service 1,750,403 1,743,921 6,482
Total Fire 48,122,596 47,765,050 357,546
142
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
GENERAL FUND
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Animal services
Personnel Services 2,640,419 2,640,419 -
Supplies and Services 397,196 397,196 -
Utilities 65,065 65,065 -
Other Expenses 3,691 3,691 -
Internal Service 61,353 61,353 -
Total Animal services 3,167,724 3,167,724 -
Economic development
Personnel Services 1,220,720 1,220,720 -
Supplies and Services 347,640 347,640 -
Utilities 1,732 1,732 -
Other Expenses 106,664 106,664 -
Total Economic development 1,676,756 1,676,756 -
Development services
Personnel Services 2,408,267 2,408,267 -
Supplies and Services 204,177 204,177 -
Utilities 2,548 2,548 -
Other Expenses 46,613 46,613 -
Internal Service 13,829 13,829 -
Total Development services 2,675,434 2,675,434 -
Parks and recreation
Personnel Services 3,628,082 3,628,082 -
Supplies and Services 866,522 866,517 6
Utilities 394,588 394,588 -
Other Expenses 220,933 220,933 -
Internal Service 15,098 15,098 -
Total Parks and recreation 5,125,223 5,125,218 6
Public works
Personnel Services 12,789,126 12,789,126 -
Supplies and Services 4,824,150 4,800,006 24,144
Utilities 3,681,772 3,678,127 3,645
Other Expenses 240,112 181,294 58,818
Internal Service 1,130,091 1,130,091 -
Total Public works 22,665,251 22,578,644 86,607
Engineering
Personnel Services 7,375,762 7,375,762 -
Supplies and Services 957,880 957,880 -
Utilities 1,498,479 1,498,479 -
Other Expenses 90,149 90,149 -
Internal Service 183,925 183,925 -
Total Engineering 10,106,195 10,106,195 -
Library
Personnel Services 2,814,493 2,814,493 -
Supplies and Services 305,361 305,361 -
Utilities 336,565 336,565 -
Other Expenses 10,360 10,360 -
Internal Service 6,393 6,393 -
Total Library 3,473,172 3,473,172 -
Debt service
Principal retirement 1,231,799 1,189,955 41,844
Interest and fiscal charges 114,411 85,368 29,043
Total Debt Service 1,346,210 1,275,323 70,887
Capital outlay 61,779,126 29,745,134 32,033,992
Transfers out 49,318,367 49,318,155 212
Total Expenditures 326,922,133$ 292,209,341$ 34,712,792$ $ $ $
143
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
FEDERAL, STATE, AND LOCAL GRANTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Current:
Finance
Other Expenses 3,481,607$ 3,002,316$ 479,291$
Total Finance 3,481,607 3,002,316 479,291
Police
Personnel Services 7,465,308 6,761,191 704,117
Supplies and Services 4,371,099 3,283,360 1,087,739 Other Expenses 1,059,205 1,026,593 32,612
Total Police 12,895,612 11,071,144 1,824,468
Fire
Personnel Services 207,808 123,079 84,729
Supplies and Services 332,675 106,210 226,465
Other Expenses 1,397,848 1,381,180 16,668
Total Fire 1,938,331 1,610,469 327,862
Animal services
Supplies and Services 15,142 6,133 9,009
Other Expenses 157,581 63,208 94,373
Total Animal services 172,723 69,341 103,382
Economic development
Supplies and Services 73,254 68,669 4,585
Other Expenses 377,498 364,198 13,300
Total Economic development 450,752 432,867 17,885 Development services
Supplies and Services 4,103,162 165,570 3,937,592 Other Expenses 14,507,451 6,010,621 8,496,830
Total Development services 18,610,613 6,176,190 12,434,423 Public works
Personnel Services 1,093,796 962,020 131,776
Supplies and Services 1,630,411 1,230,760 399,651 Utilities 18,558 - 18,558
Other Expenses 2,192,094 1,853,591 338,503
Internal Service 13,674 12,330 1,344
Total Public works 4,948,533 4,058,701 889,832
Library
Personnel Services 83,000 70,425 12,575
Supplies and Services 12,841 1,393 11,448
Other Expenses 87,948 80,208 7,740
Total Library 183,789 152,026 31,763
Capital outlay 83,619,531 40,516,957 43,102,574
Transfers out 32,094,412 26,499,809 5,594,603
Total Expenditures 158,395,903$ 93,589,819$ 64,806,084$ 144
CITY OF CHULA VISTA
BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY
HOUSING SUCCESSOR AGENCY
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual on Positive
Final Budget Budgetary Basis (Negative)
Current:
Development services
Supplies and Services 309,327$ 91,390$ 217,937$
Other Expenses 2,714,500 6,443 2,708,057
Total Development services 3,023,827 97,833 2,925,994 Transfers out 9,858 5,110 4,748
Total Expenditures 3,033,685$ 102,943$ 2,930,742$
145
146
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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
Total
Special Revenue Capital Projects Debt Service Governmental Funds Funds Funds Funds
119,048,462$ 78,686,760$ 43,559$ 197,778,781$ 384,060 884,746 - 1,268,806
1,977,505 - - 1,977,505
649,388 302,995 62,948 1,015,331
4,414,608 4,946,699 - 9,361,307
- 344,128 - 344,128
25,801 - 431,690 457,491
- 791,803 5,216,571 6,008,374
126,499,824$ 85,957,131$ 5,754,768$ 218,211,723$ 2,800,641$ 339,932$ 2,300$ 3,142,873$
170,188 483,956 - 654,144
64,615 17,380 - 81,995
1,419,991 - - 1,419,991
20,101 2,031,122 - 2,051,223
402,226 - - 402,226
4,877,762 2,872,390 2,300 7,752,452
4,465,882 6,255,103 - 10,720,985
4,465,882 6,255,103 - 10,720,985
25,801 - 431,690 457,491
117,156,134 78,873,951 5,320,778 201,350,863
(25,755) (2,044,313) - (2,070,068)
117,156,180 76,829,638 5,752,468 199,738,286
126,499,824$ 85,957,131$ 5,754,768$ 218,211,723$ 147
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
Total
Special Revenue Capital Projects Debt Service Governmental Funds Funds Funds Funds
-$ 552,600$ -$ 552,600$
41,040 - - 41,040
18,560,516 2,234,001 - 20,794,517
22,404,908 - - 22,404,908
5,056,908 2,636,499 218,462 7,911,869
575,672 - - 575,672
13,593,076 1,698,444 - 15,291,520
2,873,832 1,239,118 283,343 4,396,293
63,105,952 8,360,662 501,805 71,968,419
1,474,090 366 33,292 1,507,748
83,168 - - 83,168
2,087,937 22,637 - 2,110,574
46,074 - - 46,074
15,392,962 536,934 - 15,929,896
2 - - 2
8,972,332 3,829,482 - 12,801,814
117,548 932 21,683,343 21,801,823
4,985 628,358 11,939,614 12,572,957
28,179,098 5,018,709 33,656,249 66,854,056
34,926,854 3,341,953 (33,154,444) 5,114,363
389,697 25,273,578 33,197,114 58,860,389
(5,315,194) (673,891) - (5,989,085)
162,332 - - 162,332
(4,763,165) 24,599,687 33,197,114 53,033,636
30,163,689 27,941,640 42,670 58,147,999
86,992,491 48,887,998 5,709,798 141,590,287
117,156,180$ 76,829,638$ 5,752,468$ 199,738,286$ 149
150
NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS:
Transportati
on 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 allocations must be spent for street maintenance or construction and a limited amount for engineering.
Parking Meter
- This fund accounts for revenues and expenditures from the operation of parking meters located in the downtown area and parking citation payments 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 Saf
ety - This fund is a depository for monies derived from vehicle code fines (excluding parking violations). The fines are collected through the County court system and remitted 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 - T
his 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 - Thi
s fund accounts for revenues from an in -lieu parking fee. The in- lieu parking fee applies to any developer of a new commercial building 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 Dis
tricts - 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 Progr
ams - This fund is a depository for federal housing rehabilitation monies held in trust by Bank of America for the issuance of housing rehabilitation loans to qualified low- and moderate-income recipients.
Housing Autho
rity - This fund accounts for all housing related activity which is reimbursed from various Local, State and Federal funding sources. The Housing 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.
Transportati
on Sales Tax - This fund accounts for the City’s share of the San Diego countywide one-half cent transportation sales tax 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. 151
NON-MAJOR
GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS (Continued) :
Public Educati
on and Government (PEG) Fee - This fund accounts for the 1% of gross revenues assessed on all video service providers that use the public rights -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 Se
ttlement - 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 En
dowments - 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 Contri
butions - This fund accounts for contributions from developers used to fund the construction of City facilities.
Donations - Thi
s fund accounts for monies received from a donor(s) for various programming. 152
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
Transportation
Gas Taxes Parking Meter Traffic Safety Storm Drain
ASSETS
Cash and investments 23,757,250$ 1,366,257$ -$ 2,896,375$ Receivables:
Accounts (net of allowance for uncollectibles) - 47,157 22,621 113,976 Taxes 1,888,400 - - -
Accrued interest 139,643 8,575 1,260 17,584
Deferred loans (net of allowance for uncollectibles) - - - - Due from other governments - - - -
Prepaid costs - - - -
Restricted assets:
Cash and investments with fiscal agents - - - - Total Assets 25,785,293$ 1,421,989$ 23,881$ 3,027,935$
LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCE
Liabilities:
Accounts payable 87,249$ 63,311$ 5,465$ 15,822$ Retentions payable 14,464 - - -
Accrued liabilities 9,355 - - -
Deposits payable - - - -
Due to other funds - - 20,101 -
Unearned revenues - - - -
Total Liabilities 111,068 63,311 25,566 15,822
Deferred Inflows of Resources:
Unavailable revenues - - - 2,226
Total Deferred Inflows of Resources - - - 2,226 Fund Balances:
Nonspendable - - - -
Restricted 25,674,225 1,358,678 - 3,009,887
Unassigned (Deficit) - - (1,685) -
Total Fund Balances (Deficit) 25,674,225 1,358,678 (1,685) 3,009,887 Total Liabilities, Deferred Inflows of
Resources, and Fund Balances
Special Revenue Funds
25,785,293$ 3,027,935$ 23,881$ 1,421,989$
153
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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
Town Center I Districts Programs Authority
271,042$ 61,840,457$ 84,009$ 6,103,393$
- 60,544 - 71,622
- - - -
1,540 355,885 - 34,075
- - 515,860 3,898,748
- - - -
- 25,801 - -
- - - -
272,582$ 62,282,687$ 599,869$ 10,107,838$
-$ 1,775,429$ 86$ 102,421$
- 132,204 - -
- - - 55,260
- - - -
- - - -
- - - -
- 1,907,633 86 157,681
- - 515,860 3,947,784
- - 515,860 3,947,784
- 25,801 - -
272,582 60,349,253 83,923 6,002,373
- - - -
272,582 60,375,054 83,923 6,002,373
Special Revenue Funds
10,107,838$ 599,869$ 62,282,687$ 272,582$
154
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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)
Transportation Public Education Utility Tax
Sales Tax Mobile Park Fee and Govt Fee Settlement
306,949$ 221,805$ 462,041$ 107,510$
63,128 12 - -
- - 89,105 -
- - - 611
- - - -
- - - -
- - - -
- - - -
370,077$ 221,817$ 551,146$ 108,121$
381,193$ 2,769$ 117,484$ -$
12,954 - - -
- - - -
- - - -
- - - -
- 8,420 - -
394,147 11,189 117,484 -
- 12 - -
- 12 - -
- - - -
- 210,616 433,662 108,121
(24,070) - - -
(24,070) 210,616 433,662 108,121
Special Revenue Funds
221,817$ 370,077$ 108,121$ 551,146$
155
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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)
Total
National Opioid Special Revenue Developer Special Revenue Settlement Endowments Contributions Donations Funds
535,621$ 1,451,240$ 18,857,388$ 787,125$ 119,048,462$ - - - 5,000 384,060
- - - - 1,977,505
2,731 8,272 74,749 4,463 649,388
- - - - 4,414,608
- - - - -
- - - - 25,801
- - - - -
538,352$ 1,459,512$ 18,932,137$ 796,588$ 126,499,824$ -$ 28,955$ 18,626$ 201,831$ 2,800,641$
- 10,566 - - 170,188
- - - - 64,615
- 1,419,991 - - 1,419,991
- - - - 20,101
393,806 - - - 402,226
393,806 1,459,512 18,626 201,831 4,877,762
- - - - 4,465,882
- - - - 4,465,882
- - - - 25,801
144,546 - 18,913,511 594,757 117,156,134
- - - - (25,755)
144,546 - 18,913,511 594,757 117,156,180
126,499,824$
Special Revenue Funds
796,588$ 18,932,137$ 1,459,512$ 538,352$
156
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, 2024
Special Revenue Funds
Transportation
Gas Taxes Parking Meter Traffic Safety Storm Drain
Revenues:
Taxes -$ -$ -$ -$
License and permits - 41,040 - -
Intergovernmental 14,620,717 - - -
Charges for service 525 - - 615,693
Use of money and property 1,052,873 518,241 7,912 134,087 Fines and forfeitures - 285,718 289,954 -
Developer participation - - - -
Miscellaneous 18,675 2,713 - -
Total Revenues (net losses) 15,692,790 847,712 297,866 749,780 Expenditures:
Current:
General government - 750,096 - -
Public safety - - 36,119 -
Community development - - - -
Parks and recreation - - - -
Public works 298,988 - - 255,552
Library - - - -
Capital outlay 4,542,902 176,718 - -
Debt service:
Principal retirement 1,041 28,724 - -
Interest and fiscal charges 14 2,125 - -
Total Expenditures 4,842,945 957,663 36,119 255,552 Excess (Deficiency) Revenues over Expenditures 10,849,845 (109,951) 261,747 494,228 Other Financing Sources (Uses):
Transfers in 1,500 - - 9,700
Transfers out (4,695,656) (614) (258,698) (218,081)
Subscription-based IT arrangement - 105,804 - -
Total Other Financing Sources (Uses) (4,694,156) 105,190 (258,698) (208,381) Net Change in Fund Balance 6,155,689 (4,761) 3,049 285,847 19,518,536 1,363,439 (4,734) 2,724,040 Fund Balances (Deficit) - Beginning Fund Balances (Deficit) - Ending 25,674,225$ 1,358,678$ (1,685)$ 3,009,887$ 157
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
(CONTINUED)
Special Revenue Funds
Open Space Housing Housing
Town Center I Districts Programs Authority
-$ -$ -$ -$
- - - -
- - - -
13,125 21,138,747 - 613,148
12,617 2,627,230 - 310,295
- - - -
- - - -
- 18,320 - 1,395,954
25,742 23,784,297 - 2,319,397
- - - -
- - - -
87 - 30,207 1,722,501
- - - -
- 14,838,422 - -
- - - -
- 56,918 - 84,028
- - - 29,310
- - - 350
87 14,895,340 30,207 1,836,189
25,655 8,888,957 (30,207) 483,208
- 377,497 - 1,000
- (15,944) - (125,513)
- - - 56,528
- 361,553 - (67,985)
25,655 9,250,510 (30,207) 415,223
246,927 51,124,544 114,130 5,587,150
272,582$ 60,375,054$ 83,923$ 6,002,373$
158
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
(CONTINUED)
Special Revenue Funds
Transportation Public Education Utility Tax
Sales Tax Mobile Park Fee and Govt Fee Settlement
-$ -$ -$ -$
- - - -
3,939,799 - - -
- 23,670 - -
1,841 - - 5,172
- - - -
- - - -
63,128 - 856,517 -
4,004,768 23,670 856,517 5,172
- - 604,196 34
- - - -
- 47,132 - -
- - - -
- - - -
- - - -
3,391,253 - 382,179 -
3,723 - 54,750 -
54 - 2,442 -
3,395,030 47,132 1,043,567 34
609,738 (23,462) (187,050) 5,138
- - - -
- - - -
- - - -
- - - -
609,738 (23,462) (187,050) 5,138
(633,808) 234,078 620,712 102,983
(24,070)$ 210,616$ 433,662$ 108,121$
159
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
(CONTINUED)
Total
National Opioid Special Revenue Developer Special Revenue Settlement Endowments Contributions Donations Funds
-$ -$ -$ -$ -$
- - - - 41,040
- - - - 18,560,516
- - - - 22,404,908
16,758 - 338,131 31,751 5,056,908
- - - - 575,672
- - 13,593,076 - 13,593,076
46,781 - - 471,744 2,873,832
63,539 - 13,931,207 503,495 63,105,952
154 - 792 118,818 1,474,090
- - - 47,049 83,168
- - 25,338 262,672 2,087,937
- - - 46,074 46,074
- - - - 15,392,962
- - - 2 2
- - 277,450 60,884 8,972,332
- - - - 117,548
- - - - 4,985
154 - 303,580 535,499 28,179,098
63,385 - 13,627,627 (32,004) 34,926,854
- - - - 389,697
- - (688) - (5,315,194)
- - - - 162,332
- - (688) - (4,763,165)
63,385 - 13,626,939 (32,004) 30,163,689
81,161 - 5,286,572 626,761 86,992,491
144,546$ -$ 18,913,511$ 594,757$ 117,156,180$ Special Revenue Funds
160
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 14,759,410$ 14,620,717$ (138,693)$ Charges for service - 525 525
Use of money and property 28,496 1,125,252 1,096,756 Other revenues - 18,675 18,675
Total Revenues 14,787,906 15,765,169 977,263
Expenditures:
Current:
Public works 300,041 300,041 -
Capital outlay 28,560,933 5,188,623 23,372,310
Total Expenditures 28,860,974 5,488,664 23,372,310 Excess (Deficiency) Revenues over Expenditures (14,073,068) 10,276,506 24,349,574 Other Financing Sources (Uses):
Transfers in 3,522 1,500 (2,022)
Transfers out (4,715,678) (4,695,656) 20,022
Total Other Financing Sources (Uses) (4,712,156) (4,694,156) 18,000 Net Change in Fund Balance (18,785,224)$ 5,582,350 24,367,574$ Fund Balances - Beginning 17,938,607
Encumbrances, Prior Year 1,812,288
Fund Balances - Ending 25,333,244$
161
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Licenses and permits 90,000$ 41,040$ (48,960)$
Use of money and property 427,177 527,855 100,678 Fines and forfeitures 278,151 285,718 7,567
Other revenues - 2,713 2,713
Total Revenues 795,328 857,326 61,998
Expenditures:
Current:
General government 854,863 854,646 217
Capital outlay 24,904 2,475 22,429
Total Expenditures 879,767 857,121 22,646
Excess (Deficiency) Revenues over Expenditures (84,439) 204 84,643 Other Financing Sources (Uses):
Transfers out (615) (614) 1
Total Other Financing Sources (Uses) (615) (614) 1
Net Change in Fund Balance (85,054)$ (410) 84,644$
Fund Balances - Beginning 1,291,793
Encumbrances, Prior Year 80,744
Fund Balances - Ending 1,372,127$
162
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 11,238$ 11,238$
Fines and forfeitures 437,640 289,954 (147,686) Total Revenues 437,640 301,192 (136,448)
Expenditures:
Current:
Public safety 38,500 36,120 2,380
Total Expenditures 38,500 36,120 2,380
Excess (Deficiency) Revenues over Expenditures 399,140 265,072 (134,068) Other Financing Sources (Uses):
Transfers out (399,140) (258,698) 140,442
Total Other Financing Sources (Uses) (399,140) (258,698) 140,442 Net Change in Fund Balance -$ 6,374 6,374$
Fund Balances - Beginning (5,312)
Fund Balances - Ending 1,062$
163
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 585,000$ 615,693$ 30,693$
Use of money and property - 145,708 145,708
Fines and forfeitures 5,000 - (5,000)
Total Revenues 590,000 761,401 171,401
Expenditures:
Current:
Public works 511,274 255,553 255,721
Total Expenditures 511,274 255,553 255,721
Excess (Deficiency) Revenues over Expenditures 78,726 505,848 427,122 Other Financing Sources (Uses):
Transfers in (5,598) 9,700 15,298
Transfers out (218,284) (218,081) 203
Total Other Financing Sources (Uses) (223,882) (208,381) 15,501 Net Change in Fund Balance (145,156)$ 297,467 442,623$ Fund Balances - Beginning 2,587,619
Encumbrances, Prior Year 163,174
Fund Balances - Ending 3,048,260$
164
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service -$ 13,125$ 13,125$
Use of money and property 87 13,261 13,174
Total Revenues 87 26,386 26,299
Expenditures:
Current:
Community development 87 87 -
Capital outlay 10,120 - 10,120
Total Expenditures 10,207 87 10,120
Net Change in Fund Balance (10,120)$ 26,299 36,419$ Fund Balances - Beginning 249,643
Fund Balances - Ending 275,942$
165
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 20,507,027$ 21,138,747$ 631,720$ Use of money and property 15,944 2,924,764 2,908,820 Other revenues - 18,320 18,320
Total Revenues 20,522,971 24,081,831 3,558,860
Expenditures:
Current:
Public works 20,382,419 15,188,190 5,194,229
Capital outlay 64,706 56,918 7,788
Total Expenditures 20,447,125 15,245,108 5,202,017
Excess (Deficiency) Revenues over Expenditures 75,846 8,836,723 8,760,877 Other Financing Sources (Uses):
Transfers in 377,497 377,497 -
Transfers out (15,944) (15,944) -
Total Other Financing Sources (Uses) 361,553 361,553 - Net Change in Fund Balance 437,399$ 9,198,276 8,760,877$ Fund Balances - Beginning 51,250,096
Encumbrances, Prior Year 353,547
Fund Balances - Ending 60,801,919$
166
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 819,863$ -$ (819,863)$
Total Revenues 819,863 - (819,863)
Expenditures:
Current:
Community development 666,685 30,208 636,477
Total Expenditures 666,685 30,208 636,477
Excess (Deficiency) Revenues over Expenditures 153,178 (30,208) (183,386) Net Change in Fund Balance 153,178$ (30,208) (183,386)$ Fund Balances - Beginning 111,005
Encumbrances, Prior Year 3,125
Fund Balances - Ending 83,922$
167
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 2,022,749$ 613,148$ (1,409,601)$ Use of money and property - 366,568 366,568
Other revenues 170,000 1,395,954 1,225,954
Total Revenues 2,192,749 2,375,670 182,921
Expenditures:
Current:
Community development 2,583,705 1,890,880 692,825 Total Expenditures 2,583,705 1,890,880 692,825
Excess (Deficiency) Revenues over Expenditures (390,956) 484,790 875,746 Other Financing Sources (Uses):
Transfers in 237,797 1,000 (236,797)
Transfers out (452,803) (125,513) 327,290
Total Other Financing Sources (Uses) (215,006) (124,513) 90,493 Net Change in Fund Balance (605,962)$ 360,277 966,239$ Fund Balances - Beginning 5,491,280
Encumbrances, Prior Year 113,959
Fund Balances - Ending 5,965,516$
168
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 6,673,500$ 3,939,799$ (2,733,701)$ Use of money and property - 1,841 1,841
Other revenues - 63,128 63,128
Total Revenues 6,673,500 4,004,768 (2,668,732)
Expenditures:
Current:
Capital outlay 28,506,202 3,603,138 24,903,064
Total Expenditures 28,506,202 3,603,138 24,903,064 Net Change in Fund Balance (21,832,702)$ 401,630 22,234,332$ Fund Balances - Beginning (2,046,851)
Encumbrances, Prior Year 1,413,043
Fund Balances - Ending (232,178)$
169
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Charges for service 65,000$ 23,670$ (41,330)$
Total Revenues 65,000 23,670 (41,330)
Expenditures:
Current:
Community development 69,952 49,001 20,951
Total Expenditures 69,952 49,001 20,951
Net Change in Fund Balance (4,952)$ (25,331) (20,379)$ Fund Balances - Beginning 229,127
Encumbrances, Prior Year 4,952
Fund Balances - Ending 208,748$
170
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Other revenues 492,658$ 856,517$ 363,859$
Total Revenues 492,658 856,517 363,859
Expenditures:
Current:
General government 662,388 662,388 -
Capital outlay 382,179 382,179 -
Total Expenditures 1,044,567 1,044,567 -
Net Change in Fund Balance (551,909)$ (188,050) 363,859$ Fund Balances - Beginning 493,802
Encumbrances, Prior Year 126,909
Fund Balances - Ending 432,661$
171
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property 34$ 5,916$ 5,882$
Total Revenues 34 5,916 5,882
Expenditures:
Current:
General government 34 34 -
Total Expenditures 34 34 -
Excess (Deficiency) Revenues over Expenditures - 5,882 5,882 Net Change in Fund Balance -$ 5,882 5,882$
Fund Balances - Beginning 103,572
Fund Balances - Ending 109,454$
172
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 11,534$ 11,534$
Other revenues 440,587 46,781 (393,806)
Total Revenues 440,587 58,315 (382,272)
Expenditures:
Current:
General government 528,710 154 528,556
Total Expenditures 528,710 154 528,556
Excess (Deficiency) Revenues over Expenditures (88,123) 58,161 146,284 Net Change in Fund Balance (88,123)$ 58,161 146,284$ Fund Balances - Beginning 92,345
Fund Balances - Ending 150,506$
173
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Expenditures:
Current:
Community development 119,528$ 64,342$ 55,186$
Total Expenditures 119,528 64,342 55,186
Net Change in Fund Balance (119,528)$ (64,342) 55,186$ Fund Balances - Beginning (99,527)
Encumbrances, Prior Year 99,527
Fund Balances - Ending (64,342)$
174
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation 31,584,438$ 13,593,076$ (17,991,362)$ Use of money and property 1,480 306,257 304,777
Total Revenues 31,585,918 13,899,333 (17,686,585)
Expenditures:
Current:
General government 792 792 -
Community development 893,333 48,905 844,428
Capital outlay 34,709,201 34,709,201 -
Total Expenditures 35,603,326 34,758,898 844,428
Excess (Deficiency) Revenues over Expenditures (4,017,408) (20,859,565) (16,842,157) Other Financing Sources (Uses):
Transfers out (688) (688) -
Total Other Financing Sources (Uses) (688) (688) -
Net Change in Fund Balance (4,018,096)$ (20,860,253) (16,842,157)$ Fund Balances - Beginning 5,469,716
Fund Balances - Ending (15,390,537)$
175
CITY OF CHULA VISTA
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
DONATIONS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 18,568$ 18,568$
Other revenues 737,261 471,744 (265,517)
Total Revenues 737,261 490,312 (246,949)
Expenditures:
Current:
General government 215,895 119,071 96,824
Community development 348,892 262,672 86,220
Public safety 405,995 47,049 358,946
Parks and recreation 192,721 50,189 142,532
Library 9,664 2 9,662
Capital outlay 105,000 104,300 700
Total Expenditures 1,278,167 583,283 694,884
Excess (Deficiency) Revenues over Expenditures (540,906) (92,971) 447,935 Net Change in Fund Balance (540,906)$ (92,971) 447,935$ Fund Balances - Beginning 649,684
Fund Balances - Ending 556,713$
176
NON-MAJOR
GOVERNMENTAL FUNDS
CAPITAL PROJ
ECTS FUNDS:
Park Acquis
ition Development - This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivisions east and west of the California Interstate Highway 805.
Resident
ial 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 S
afety - 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 Fa
cility - 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 D
evelopment 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 Di
strict Improvement - This fund is a depository for monies received from issuance of bonds for various assessment districts. The monies are used to finance the construction of public works improvements in the related districts.
Transporta
tion 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 Tra
nsportation 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 Pro
jects Fund - This fund accounts for general purpose capital projects funded primarily from General Fund. Funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City.
177
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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
Industrial
Park Acquisition Residential Development
Development Construction Tax Highway Safety Bicycle Facility Authority 48,455,096$ -$ 1,019$ -$ 58$
55,044 - - - -
- - - - -
275,307 3,393 6 - -
4,946,699 - - - -
- - - - -
- - - - -
- - - - -
53,732,146$ 3,393$ 1,025$ -$ 58$
-$ -$ -$ -$ -$
- - - - -
- - - - -
- - - - -
- 1,412,503 - - -
- - - - -
- 1,412,503 - - -
5,939,563 - - - -
5,939,563 - - - -
- - - - -
47,792,583 - 1,025 - 58
- (1,409,110) - -
47,792,583 (1,409,110) 1,025 - 58
53,732,146$ 3,393$ 1,025$ -$ 58$
Capital Project Funds
178
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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 Total
District Transportation Transportation Capital Projects Capital Projects Improvement Partnership Program Fund Funds
1,165,098$ 113$ -$ 29,065,376$ 78,686,760$
- - - 829,702 884,746
- - - - -
6,562 1 - 17,726 302,995
- - - - 4,946,699
- - 344,128 - 344,128
- - - - -
- - - 791,803 791,803
1,171,660$ 114$ 344,128$ 30,704,607$ 85,957,131$ -$ -$ 12,927$ 327,005$ 339,932$
- - 32,245 451,711 483,956
- - - 17,380 17,380
- - - - -
- - 618,619 - 2,031,122
- - - - -
- - 663,791 796,096 2,872,390
- - 315,540 - 6,255,103
- - 315,540 - 6,255,103
- - - - -
1,171,660 114 - 29,908,511 78,873,951
- - (635,203) - (2,044,313)
1,171,660 114 (635,203) 29,908,511 76,829,638
1,171,660$ 114$ 344,128$ 30,704,607$ 85,957,131$ Capital Project Funds
179
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
Industrial
Park Acquisition Residential Development
Development Construction Tax Highway Safety Bicycle Facility Authority -$ 552,600$ -$ -$ -$
- - - - -
- - - - -
- - - - -
2,505,810 3,394 49 - 2
- - - - -
1,698,444 - - - -
- - - - -
4,204,254 555,994 49 - 2
- - - - -
- - - - -
22,637 - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
628,344 - - - -
650,981 - - - -
3,553,273 555,994 49 - 2
- - - 4,460 -
(18,918) (654,973) - - -
- - - - -
(18,918) (654,973) - 4,460 -
3,534,355 (98,979) 49 4,460 2
44,258,228 (1,310,131) 976 (4,460) 56
47,792,583$ (1,409,110)$ 1,025$ -$ 58$
Capital Project Funds
180
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances (Deficit) - Beginning
Fund Balances (Deficit) - Ending
(CONTINUED)
Assessment Other Total
District Transportation Transportation Capital Projects Capital Projects Improvement Partnership Program Fund Funds
-$ -$ -$ -$ 552,600$
- - - - -
- - 1,784,001 450,000 2,234,001
- - - - -
55,871 6 - 71,367 2,636,499
- - - - -
- - - - 1,698,444
- - - 1,239,118 1,239,118
55,871 6 1,784,001 1,760,485 8,360,662
366 - - - 366
- - - - -
- - - - 22,637
- - - - -
- - - 536,934 536,934
- - - - -
- - 1,943,283 1,886,199 3,829,482
- - - 932 932
- - - 14 628,358
366 - 1,943,283 2,424,079 5,018,709
55,505 6 (159,282) (663,594) 3,341,953
- - - 25,269,118 25,273,578
- - - - (673,891)
- - - - -
- - - 25,269,118 24,599,687
55,505 6 (159,282) 24,605,524 27,941,640
1,116,155 108 (475,921) 5,302,987 48,887,998
1,171,660$ 114$ (635,203)$ 29,908,511$ 76,829,638$ Capital Project Funds
181
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation 12,271,075$ 18,117,485$ 5,846,410$ Charges for service 250,000 618,993 368,993
Use of money and property 164,000 5,059,596 4,895,596 Total Revenues 12,985,075 24,096,074 11,110,999
Expenditures:
Current:
Community development 2,321,030 977,807 1,343,223 Capital outlay 70,616,820 33,922,621 36,694,199
Debt service:
Principal retirement 181,363 125,279 56,084
Interest and fiscal charges 798,915 798,915 -
Total Expenditures 73,918,128 35,824,623 38,093,505 Excess (Deficiency) Revenues over Expenditures (60,933,053) (11,728,549) 49,204,504 Other Financing Sources (Uses):
Transfers out (5,257,843) (5,163,865) 93,978
Total Other Financing Sources (Uses) (5,257,843) (5,163,865) 93,978 Net Change in Fund Balance (66,190,896)$ (16,892,414) 49,298,482$ Fund Balances - Beginning 53,795,205
Encumbrances, Prior Year 31,166,079
Fund Balances - Ending 68,068,870$
182
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Developer participation 800,000$ 1,698,444$ 898,444$ Use of money and property 185,000 2,831,034 2,646,034 Total Revenues 985,000 4,529,478 3,544,478
Expenditures:
Current:
Community development 610,000 22,638 587,362
Capital outlay 3,118,445 - 3,118,445
Debt service:
Interest and fiscal charges 628,344 628,344 -
Total Expenditures 4,356,789 650,982 3,705,807
Excess (Deficiency) Revenues over Expenditures (3,371,789) 3,878,496 7,250,285 Other Financing Sources (Uses):
Transfers in 50,000 - (50,000)
Transfers out (81,743) (18,918) 62,825
Total Other Financing Sources (Uses) (31,743) (18,918) 12,825 Net Change in Fund Balance (3,403,532)$ 3,859,578 7,263,110$ Fund Balances - Beginning 44,033,797
Encumbrances, Prior Year 500,000
Fund Balances - Ending 48,393,375$
183
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Taxes 325,505$ 552,600$ 227,095$
Use of money and property - 3,393 3,393
Total Revenues 325,505 555,993 230,488
Other Financing Sources (Uses):
Transfers out (667,267) (654,973) 12,294
Total Other Financing Sources (Uses) (667,267) (654,973) 12,294 Net Change in Fund Balance (341,762)$ (98,980) 242,782$ Fund Balances - Beginning (1,310,131)
Fund Balances - Ending (1,409,111)$
184
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property 370$ 63,808$ 63,438$
Total Revenues 370 63,808 63,438
Expenditures:
Current:
General government 370 368 2
Total Expenditures 370 368 2
Excess (Deficiency) Revenues over Expenditures - 63,440 63,440 Net Change in Fund Balance -$ 63,440 63,440$
Fund Balances - Beginning 1,122,538
Fund Balances - Ending 1,185,978$
185
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental 12,772,000$ 1,784,001$ (10,987,999)$ Total Revenues 12,772,000 1,784,001 (10,987,999)
Expenditures:
Current:
Capital outlay 20,333,997 2,197,860 18,136,137
Total Expenditures 20,333,997 2,197,860 18,136,137 Excess (Deficiency) Revenues over Expenditures (7,561,997) (413,859) 7,148,138 Net Change in Fund Balance (7,561,997)$ (413,859) 7,148,138$ Fund Balances - Beginning (2,306,144)
Encumbrances, Prior Year 1,830,222
Fund Balances - Ending (889,781)$
186
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Intergovernmental -$ 450,000$ 450,000$
Use of money and property - 137,817 137,817
Other revenues - 1,239,118 1,239,118
Total Revenues - 1,826,935 1,826,935
Expenditures:
Current:
Public works 854,573 654,575 199,998
Capital outlay 23,785,893 3,076,347 20,709,546
Total Expenditures 24,640,466 3,730,922 20,909,544 Excess (Deficiency) Revenues over Expenditures (24,640,466) (1,903,987) 22,736,479 Other Financing Sources (Uses):
Transfers in 19,227,211 25,269,118 6,041,907
Transfers out (1,434) - 1,434
Total Other Financing Sources (Uses) 19,225,777 25,269,118 6,043,341 Net Change in Fund Balance (5,414,689)$ 23,365,131 28,779,820$ Fund Balances - Beginning (681,439)
Encumbrances, Prior Year 5,936,722
Fund Balances - Ending 28,620,414$
187
NON-MAJOR
GOVERNMENTAL FUNDS
DEBT SERV
ICE FUNDS:
Public F
inancing Authority Debt Service Fund – This fund is used to 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.
Municip
al 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 De
bt Service - This fund accounts for the activities of the City’s bonds, notes, and financed purchases.
Notes P
ayable - This fund accounts for principal and interest payments on various notes payable.
Lease P
ayable - 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.
188
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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
Public Municipal
Financing Financing City Debt
Authority Authority Service Notes Payable
2,299$ -$ 1,130$ 40,127$
- - - -
- - - -
62,939 - - -
- - - -
- - - -
- - 431,690 -
5,202,614 7,412 6,545 -
5,267,852$ 7,412$ 439,365$ 40,127$
2,300$ -$ -$ -$
- - - -
- - - -
- - - -
- - - -
- - - -
2,300 - - -
- - - -
- - - -
- - 431,690 -
5,265,552 7,412 7,675 40,127
- - -
5,265,552 7,412 439,365 40,127
Debt Service Funds
40,127$ 5,267,852$ 439,365$ 7,412$
189
CITY OF CHULA VISTA
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
JUNE 30, 2024
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)
Total
Debt Service
Lease Payable Funds
3$ 43,559$
- -
- -
9 62,948
- -
- -
- 431,690
- 5,216,571
12$ 5,754,768$
-$ 2,300$
- -
- -
- -
- -
- -
- 2,300
- -
- -
- 431,690
12 5,320,778
- -
12 5,752,468
5,754,768$
Debt Service Funds
12$
190
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
Public Municipal
Financing Financing City Debt
Authority Authority Service Notes Payable
-$ -$ -$ -$
- - - -
- - - -
- - - -
201,146 8,705 8,582 -
- - - -
- - - -
- 276,191 - -
201,146 284,896 8,582 -
14,900 14,545 3,847 -
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
4,475,000 7,935,000 8,249,815 825,350
2,341,894 2,401,049 7,036,353 150,477
6,831,794 10,350,594 15,290,015 975,827
(6,630,648) (10,065,698) (15,281,433) (975,827)
6,684,809 10,069,712 15,265,916 975,827
- - - -
- - - -
6,684,809 10,069,712 15,265,916 975,827
54,161 4,014 (15,517) -
5,211,391 3,398 454,882 40,127
5,265,552$ 7,412$ 439,365$ 40,127$
Debt Service Funds
191
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, 2024
Revenues:
Taxes
License and permits
Intergovernmental
Charges for service
Use of money and property
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
Total Other Financing Sources (Uses)
Net Change in Fund Balance
Fund Balances - Beginning
Fund Balances (Deficit) - Ending
(CONTINUED)
Total
Debt Service
Lease Payable Funds
-$ -$
- -
- -
- -
29 218,462
- -
- -
7,152 283,343
7,181 501,805
- 33,292
- -
- -
- -
- -
- -
- -
198,178 21,683,343
9,841 11,939,614
208,019 33,656,249
(200,838) (33,154,444)
200,850 33,197,114
- -
- -
200,850 33,197,114
12 42,670
- 5,709,798
12$ 5,752,468$
Debt Service Funds
192
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 200,826$ 200,826$
Total Revenues - 200,826 200,826
Expenditures:
Current:
General government 18,002 14,900 3,102
Debt service:
Principal retirement 4,475,003 4,474,999 4
Interest and fiscal charges 2,341,899 2,341,893 6 Total Expenditures 6,834,904 6,831,792 3,112
Excess (Deficiency) Revenues over Expenditures (6,834,904) (6,630,966) 203,938 Other Financing Sources (Uses):
Transfers in 6,833,904 6,684,809 (149,095)
Total Other Financing Sources (Uses) 6,833,904 6,684,809 (149,095) Net Change in Fund Balance (1,000)$ 53,843 54,843$ Fund Balances - Beginning 5,210,519
Encumbrances, Prior Year 1,000
Fund Balances - Ending 5,265,362$
193
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 8,622$ 8,622$
Other revenues 273,242 276,191 2,949
Total Revenues 273,242 284,813 11,571
Expenditures:
Current:
General government 47,865 14,544 33,321
Debt service:
Principal retirement 7,935,000 7,935,000 -
Interest and fiscal charges 2,401,049 2,401,049 - Total Expenditures 10,383,914 10,350,593 33,321
Excess (Deficiency) Revenues over Expenditures (10,110,672) (10,065,780) 44,892 Other Financing Sources (Uses):
Transfers in 10,081,291 10,069,712 (11,579)
Total Other Financing Sources (Uses) 10,081,291 10,069,712 (11,579) Net Change in Fund Balance (29,381)$ 3,932 33,313$ Fund Balances - Beginning 2,381
Encumbrances, Prior Year 1,000
Fund Balances - Ending 7,313$
194
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 5,315$ 5,315$
Total Revenues - 5,315 5,315
Expenditures:
Current:
General government 4,886 3,848 1,038
Debt service:
Principal retirement 8,249,815 8,249,815 -
Interest and fiscal charges 7,036,353 7,036,353 - Total Expenditures 15,291,054 15,290,016 1,038
Excess (Deficiency) Revenues over Expenditures (15,291,054) (15,284,701) 6,353 Other Financing Sources (Uses):
Transfers in 14,710,110 15,265,916 555,806
Total Other Financing Sources (Uses) 14,710,110 15,265,916 555,806 Net Change in Fund Balance (580,944)$ (18,785) 562,159$ Fund Balances - Beginning 454,569
Encumbrances, Prior Year 305
Fund Balances - Ending 436,089$
195
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Expenditures:
Debt service:
Principal retirement 825,351$ 825,350$ 1$
Interest and fiscal charges 150,478 150,477 1
Total Expenditures 975,829 975,827 2
Excess (Deficiency) Revenues over Expenditures (975,829) (975,827) 2 Other Financing Sources (Uses):
Transfers in 975,829 975,827 (2)
Total Other Financing Sources (Uses) 975,829 975,827 (2) Net Change in Fund Balance -$ - -$
Fund Balances - Beginning 40,127
Fund Balances - Ending 40,127$
196
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, 2024
Variance with
Final Budget
Actual on a Positive
Final Budget Budgetary Basis (Negative)
Revenues:
Use of money and property -$ 3,087$ 3,087$
Other revenues 7,000 7,152 152
Total Revenues 7,000 10,239 3,239
Expenditures:
Debt service:
Principal retirement 198,178 198,178 -
Interest and fiscal charges 9,841 9,841 -
Total Expenditures 208,019 208,019 -
Excess (Deficiency) Revenues over Expenditures (201,019) (197,780) 3,239 Other Financing Sources (Uses):
Transfers in 201,019 200,850 (169)
Total Other Financing Sources (Uses) 201,019 200,850 (169) Net Change in Fund Balance -$ 3,070 3,070$
Fund Balances - Beginning (3,058)
Fund Balances - Ending 12$
197
CITY OF CHULA VISTA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2024
Bayfront Trolley
Station Transit Fund
Chula Vista
Muni Golf Course
Transport
Enterprise
ASSETS
Current Assets:
Cash and investments 93,994$ 189,610$ 55,975$ 4,388,382$ Cash with fiscal agent - - 1,092,061 -
Receivables:
Accounts (net of allowance for uncollectibles) - - 30,262 15,450,054 Accrued interest 683 1,377 - 53,281
Prepaid costs - - 8,291 -
Inventories - - 60,908 -
Total Current Assets 94,677 190,987 1,247,497 19,891,717 Capital assets:
Land - - 598,659 -
Buildings and structures - - 762,731 -
Machinery and equipment - 42,304 199,567 5,158,143
Less accumulated depreciation/amortization - (42,304) (712,613) (3,205,207) Total Noncurrent Assets - - 848,344 1,952,936
Total Assets 94,677 190,987 2,095,841 21,844,653
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows - - - 4,460,178
OPEB deferred outflows - - - 17,663
Total Deferred Outflows of Resources - - - 4,477,841
LIABILITIES
Current Liabilities:
Accounts payable - - 195,387 972,697
Accrued liabilities - - 71,742 439,534
Accrued interest payable - 7,655
Compensated absences - - - 134,424
Total OPEB liability - - - 5,781
Bonds, notes, subscriptions, and financed purchases - - - 912,053 Total Current Liabilities - - 267,129 2,472,144
Noncurrent Liabilities:
Advances from other funds - - - 1,380,956
Compensated absences - - 23,125 -
Net pension liability - - - 3,528,845
Total OPEB liability - - - 106,017
Bonds, notes, subscriptions, and financed purchases - - - 921,197 Total Noncurrent Liabilities - - 23,125 5,937,015 Total Liabilities - - 290,254 8,409,159
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows - - - 182,684
OPEB deferred inflows - - - 27,081
Total Deferred Inflows of Resources - - - 209,765
NET POSITION (DEFICIT)
Net investment in capital assets - - 848,344 119,686 Unrestricted 94,677 190,987 957,243 17,583,884
Total Net Position (Deficit) 94,677$ 190,987$ 1,805,587$ 17,703,570$ Business-Type Activities - Enteprise Funds
198
CITY OF CHULA VISTA
COMBINING STATEMENT OF NET POSITION
NON-MAJOR PROPRIETARY FUNDS
JUNE 30, 2024
ASSETS
Current Assets:
Cash and investments
Cash with fiscal agent
Receivables:
Accounts (net of allowance for uncollectibles)
Accrued interest
Prepaid costs
Inventories
Total Current Assets
Capital assets:
Land
Buildings and structures
Machinery and equipment
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
Compensated absences
Total OPEB liability
Bonds, notes, subscriptions, and financed purchases
Total Current Liabilities
Noncurrent Liabilities:
Advances from other funds
Compensated absences
Net pension liability
Total 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
17,154$ 4,745,115$
- 1,092,061
- 15,480,316
- 55,341
- 8,291
- 60,908
17,154 21,442,032
- 598,659
- 762,731
- 5,400,014
- (3,960,124)
- 2,801,280
17,154 24,243,312
- 4,460,178
- 17,663
- 4,477,841
17,154 1,185,238
- 511,276
- 7,655
- 134,424
- 5,781
- 912,053
17,154 2,756,427
- 1,380,956
- 23,125
- 3,528,845
- 106,017
- 921,197
- 5,960,140
17,154 8,716,567
- 182,684
- 27,081
- 209,765
- 968,030
- 18,826,791
-$ 19,794,821$
Business-Type Activities - Enteprise
Funds
199
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, 2024
Bayfront Trolley
Station Transit Fund
Chula Vista
Muni Golf
Course
Transport
Enterprise
OPERATING REVENUES
Sales and service charges -$ -$ 3,534,111$ 23,865,048$ Other - - - -
Total Operating Revenues - - 3,534,111 23,865,048
OPERATING EXPENSES
Administration and general 30 60 3,336,739 14,048,655 Depreciation/amortization expense - 4,886 64,326 993,277 Total Operating Expenses 30 4,946 3,401,065 15,041,932 Operating Income (Loss) (30) (4,946) 133,046 8,823,116
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss) 4,671 9,911 - 241,322
Interest expense - - - (61,687)
Total Nonoperating Revenues (Expenses): 4,671 9,911 - 179,635 Income (Loss) Before Transfers 4,641 4,965 133,046 9,002,751 Transfers in - 93,109 - 9,500
Transfers out - - - (3,004,655)
Change in Net Position 4,641 98,074 133,046 6,007,596 NET POSITION (DEFICIT) - Beginning 90,036 92,913 1,672,541 11,695,974 NET POSITION (DEFICIT) - ENDING 94,677$ 190,987$ 1,805,587$ 17,703,570$ Business -Type Activities - Enterprise Funds
200
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, 2024
OPERATING REVENUES
Sales and service charges
Other
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 out
Change in Net Position
NET POSITION (DEFICIT) - Beginning
NET POSITION (DEFICIT) - ENDING
Living Coast
Discovery
Center Totals
-$ 27,399,159$
476 476
476 27,399,635
227,830 17,613,314
- 1,062,489
227,830 18,675,803
(227,354) 8,723,832
- 255,904
- (61,687)
- 194,217
(227,354) 8,918,049
228,152 330,761
- (3,004,655)
798 6,244,155
(798) 13,550,666
-$ 19,794,821$
Business -Type Activities -
Enterprise Funds
201
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
Bayfront
Trolley Station Transit Fund
Chula Vista
Muni Golf
Course
Transport
Enterprise
CASH FLOWS FROM OPERATING ACTIVITES
Cash received from customers and users -$ -$ 3,503,849$ 21,081,226$ Cash paid to suppliers for goods and services (30) (60) (1,863,491) (5,560,586) Cash paid to employees for services - - (1,371,769) (7,831,404) Cash received from others - (3,450) -
Net Cash Provided by (Used for)
Operating Activities (30) (60) 265,139 7,689,236
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in - 93,109 - 9,500
Cash transfers out - - - (3,004,655)
Repayment of interfund borrowings - - - (959,665)
Net Cash Provided by (Used for)
Non-Capital Financing Activities - 93,109 - (3,954,820)
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets - - (117,363) (673,628) Principal paid on capital debt - - - (903,001)
Interest paid on capital debt - - - (65,446)
Net Cash Used for
Capital and Related Financing Activities - - (117,363) (1,642,075)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings (loss) 4,476 9,029 - 214,290
Net Cash Provided by
Investing Activities 4,476 9,029 - 214,290
Net Increase (Decrease)
in Cash and Cash Equivalents 4,446 102,078 147,776 2,306,631 Cash and Cash Equivalents - July 1 89,548 87,532 1,000,260 2,081,751 Cash and Cash Equivalents - June 30 93,994$ 189,610$ 1,148,036$ 4,388,382$ Reconciliation of Cash and Cash Equivalents to the Amounts Reported on the Statement of Net Position
Cash and investments 93,994$ 189,610$ 55,975$ 4,388,382$ Cash with fiscal agent - - 1,092,061 -
Total Cash and Cash Equivalents reported
on the Statement of Net Position 93,994$ 189,610$ 1,148,036$ 4,388,382$ Business-Type Activities - Enterprise Funds
202
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
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 out
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 debt
Interest paid on capital debt
Net Cash Used for
Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings (loss)
Net Cash Provided by
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
Living Coast
Discovery
Center Totals
-$ 24,585,075$
(240,767) (7,664,934)
- (9,203,173)
476 (2,974)
(240,291) 7,713,994
228,152 330,761
- (3,004,655)
- (959,665)
228,152 (3,633,559)
- (790,991)
- (903,001)
- (65,446)
- (1,759,438)
363 228,158
363 228,158
(11,776) 2,549,155
28,930 3,288,021
17,154$ 5,837,176$
17,154$ 4,745,115$
- 1,092,061
17,154$ 5,837,176$
Business -Type Activities -
Enterprise Funds
203
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
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) (30)$ (4,946)$ 133,046$ 8,823,116$ Adjustments to Reconcile Operating Income (loss)
to Net Cash Provided by (Used for) Operating Activities:
Depreciation/Amortization - 4,886 64,326 993,277
(Increase) decrease in accounts receivable - - (30,262) (2,783,822) (Increase) decrease in prepaid costs and inventories - - 54,814 - (Increase) decrease in deferred outflows from pensions - - - (531,502) (Increase) decrease in deferred outflows from OPEB - - - 317,438 Increase (decrease) in accounts payable - - (3,450) 719,802 Increase (decrease) in accrued liabilities - - 48,510 138,545 Increase (decrease) in compensated absences - - (1,845) (64,784) Increase (decrease) in net pension liability - - - 1,710,248 Increase (decrease) in total OPEB liability - - - (1,310,939) Increase (decrease) in deferred inflows from pensions - - - (170,445) Increase (decrease) in deferred inflows from OPEB - - - (151,698) Total Adjustments - 4,886 132,093 (1,133,880)
Net Cash Provided by (Used for)
Operating Activities (30)$ (60)$ 265,139$ 7,689,236$ 204
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
NON-MAJOR PROPRIETARY FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
CASH FLOWS FROM OPERATING ACTIVITESReconciliation 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 liability
Increase (decrease) in total 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
Living Coast
Discovery
Center Totals
Business -Type Activities -
Enterprise Funds
(227,354)$ 8,723,832$
- 1,062,489
- (2,814,084)
- 54,814
- (531,502)
- 317,438
(12,937) 703,415
- 187,055
- (66,629)
- 1,710,248
- (1,310,939)
- (170,445)
- (151,698)
(12,937) (1,009,838)
(240,291)$ 7,713,994$
205
CITY OF CHULA VISTA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2024
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
ASSETS
Current Assets:
Cash and investments 4,395,869$ 2,650$ 8,441,782$ 12,840,301$ Cash with fiscal agent 39 - - 39
Receivables:
Accounts (net of allowance for uncollectibles) 187,983 - - 187,983 Accrued interest 13,222 - - 13,222
Prepaid costs 2,573 - - 2,573
Total Current Assets 4,599,686 2,650 8,441,782 13,044,118 Capital assets:
Machinery and equipment 4,576,616 - - 4,576,616
Less accumulated depreciation/amortization (3,933,583) - - (3,933,583) Total Noncurrent Assets 643,033 - - 643,033
Total Assets 5,242,719 2,650 8,441,782 13,687,151
DEFERRED OUTFLOWS OF RESOURCES
Pension deferred outflows 1,114,777 - - 1,114,777
OPEB deferred outflows 17,663 - - 17,663
Total Deferred Outflows of Resources 1,132,440 - - 1,132,440
LIABILITIES
Current Liabilities:
Accounts payable 370,035 - 44,044 414,079
Accrued liabilities 101,497 - - 101,497
Accrued interest payable 3,296 - - 3,296
Compensated absences 50,123 - - 50,123
Total OPEB liability 5,781 - - 5,781
Bonds, notes, subscriptions, and financed purchases 50,317 - - 50,317 Total Current Liabilities 581,049 - 44,044 625,093
Noncurrent Liabilities:
Compensated absences 30,841 - - 30,841
Net pension liability 881,999 - - 881,999
Total OPEB liability 106,017 - - 106,017
Bonds, notes, subscriptions, and financed purchases 1,728,222 - - 1,728,222 Total Noncurrent Liabilities 2,747,079 - - 2,747,079 Total Liabilities 3,328,128 - 44,044 3,372,172
DEFERRED INFLOWS OF RESOURCES
Pension deferred inflows 45,660 - - 45,660
OPEB deferred inflows 27,081 - - 27,081
Total Deferred Inflows of Resources 72,741 - - 72,741
NET POSITION (DEFICIT)
Net investment in capital assets 643,033 - - 643,033
Unrestricted 2,331,257 2,650 8,397,738 10,731,645
Total Net Position (Deficit): 2,974,290$ 2,650$ 8,397,738$ 11,374,678$ Governmental Activities - Internal Service Funds
206
CITY OF CHULA VISTA
COMBINING STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN FUND NET POSITION
INTERNAL SERVICE FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
OPERATING REVENUES
Sales and service charges 113,081$ -$ -$ 113,081$
Interdepartmental charges 5,494,474 - 4,954,641 10,449,115 Other 408,656 - 66,406 475,062
Total Operating Revenues 6,016,211 - 5,021,047 11,037,258
OPERATING EXPENSES
Administration and general 5,565,304 - 5,471,879 11,037,183 Depreciation/amortization expense 226,272 - - 226,272
Total Operating Expenses 5,791,576 - 5,471,879 11,263,455 Operating Income (Loss) 224,635 - (450,832) (226,197)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss) 58,110 - - 58,110
Interest expense (41,922) - - (41,922)
Total Nonoperating Revenues (Expenses) 16,188 - - 16,188 Income (Loss) Before Transfers 240,823 - (450,832) (210,009) Transfers in 706,124 - - 706,124
Transfers out (96,354) - - (96,354)
Change in Net Position 850,593 - (450,832) 399,761
NET POSITION (DEFICIT) - Beginning 2,123,697 2,650 8,848,570 10,974,917 NET POSITION (DEFICIT) - ENDING 2,974,290$ 2,650$ 8,397,738$ 11,374,678$ Governmental Activities - Internal Service Funds
207
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
Fleet
Management
Technology
Replacement
Workers
Compensation Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers and users 368,646$ -$ -$ 368,646$ Cash received from interfund service provided 5,494,474 - 5,021,047 10,515,521 Cash paid to suppliers for goods and services (3,943,048) - (820,790) (4,763,838) Cash paid to employees for services (1,288,082) - (4,729,780) (6,017,862) Cash received from others 131 - - 131
Net Cash Provided by (Used for)
Operating Activities 632,121 - (529,523) 102,598
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Cash transfers in 706,124 - - 706,124
Cash transfers out (96,354) - - (96,354)
Principal payments on pension bonds (49,170) - - (49,170) Interest paid on pension bonds (41,939) - - (41,939)
Net Cash Provided by (Used for)
Non-Capital Financing Activities 518,661 - - 518,661
CASH FLOWS FROM CAPITAL
AND RELATED FINANCING ACTIVITIES
Acquisition and construction of capital assets (21,014) - - (21,014) Net Cash Used for
Capital and Related Financing Activities (21,014) - - (21,014)
CASH FLOWS FROM INVESTING ACTIVITIES
Investment earnings (loss) 48,835 - - 48,835
Net Cash Provided by
Investing Activities 48,835 - - 48,835
Net Increase in Cash and Cash Equivalents 1,178,603 - (529,523) 649,080 Cash and Cash Equivalents - July 1 3,217,305 2,650 8,971,305 12,191,260 Cash and Cash Equivalents - June 30 4,395,908$ 2,650$ 8,441,782$ 12,840,340$ Reconciliation of Cash and Cash Equivalents to the
Amounts Reported on the Statement of Net Position
Cash and investments 4,395,869$ 2,650$ 8,441,782$ 12,840,301$ Cash with fiscal agent 39 - - 39
Total Cash and Cash Equivalents reported
on the Statement of Net Position 4,395,908$ 2,650$ 8,441,782$ 12,840,340$ Governmental Activities - Internal Service Funds
208
CITY OF CHULA VISTA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR FISCAL YEAR ENDED JUNE 30, 2024
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) 224,635$ -$ (450,832)$ (226,197)$ Adjustments to Reconcile Operating Income
to Net Cash Provided by Operating Activities:
Depreciation/Amortization 226,272 - - 226,272 (Increase) decrease in accounts receivable (152,960) - - (152,960) (Increase) decrease in prepaid costs and inventories 122 - - 122 (Increase) decrease in deferred outflows from pensions (53,158) - - (53,158) (Increase) decrease in deferred outflows from OPEB 40,846 - - 40,846 Increase (decrease) in accounts payable 94,612 - (78,691) 15,921 Increase (decrease) in accrued liabilities 50,852 - - 50,852 Increase (decrease) in compensated absences 3,426 - - 3,426 Increase (decrease) in net pension liability 393,249 - - 393,249 Increase (decrease) in total OPEB liability (142,397) - - (142,397) Increase (decrease) in deferred inflows from pensions (49,244) - - (49,244) Increase (decrease) in deferred inflows from OPEB (4,134) - - (4,134) Total Adjustments 407,486 - (78,691) 328,795 Net Cash Provided by (Used for)
Operating Activities 632,121$ -$ (529,523)$ 102,598$ 209
CITY OF CHULA VISTA
COMBINING STATEMENT OF FIDUCIARY NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2024
Special
Assessment
Districts
Bayfront Special
Tax District
CV Bayfront
Facilities
Financing
Authority Total
ASSETS
Cash and cash equivalents 8,380,261$ 152,721$ -$ 8,532,982$ Cash and cash equivalents held with fiscal agents 25,971,178 - 37,932,299 63,903,477 Receivables:
Accounts 46,327 - 446,203 492,530
Taxes - 81,204 - 81,204
Accrued interest 143,278 715 - 143,993
Total Assets 34,541,044 234,640 38,378,502 73,154,186
LIABILITIES
Current liabilities:
Accounts payable 2,294 1,500 621,379 625,173
Accrued interest 1,464,932 12,390 - 1,477,322
Deposits payable 15,486 - - 15,486
Due to bond holders 8,938,943 - - 8,938,943
Total Current Liabilities 10,421,655 13,890 621,379 11,056,924 Total Liabilities 10,421,655 13,890 621,379 11,056,924 NET POSITION (DEFICIT):
Restricted:
Individuals, organizations, and other governments 24,119,389 220,750 37,757,123 62,097,262 Total Net Position (Deficit) 24,119,389$ 220,750$ 37,757,123$ 62,097,262$ 210
CITY OF CHULA VISTA
COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE FISCAL YEAR ENDED JUNE 30, 2024
Special
Assessment
Districts
Bayfront Special
Tax District
CV Bayfront
Facilities
Financing
Authority Total
ADDITIONS
Investment Earnings:
Net decrease in fair value of investments 308,834$ 3,585$ (235,428)$ 76,991$ Interest, dividends, and other 1,472,209 6,592 4,594,204 6,073,005 Total Investment Earnings 1,781,043 10,177 4,358,776 6,149,996 Bond proceeds 35,109,432 - 124,237,743 159,347,175 Contributions from other governments - - 3,749,131 3,749,131 Special assessments 17,383,435 523,929 - 17,907,364 Special tax district contribution - - 484,652 484,652 Total Additions 54,273,910 534,106 132,830,302 187,638,318
DEDUCTIONS
Administrative expenses 6,314 41 - 6,355
Contractual services 241,009 3,355 8,259,742 8,504,106 Debt service and fiscal agent charges 57,380,768 554,445 22,896,400 80,831,613 Capital outlay - - 148,177,568 148,177,568
Total Deductions 57,628,091 557,841 179,333,710 237,519,642 Net Increase in Fiduciary Net Position (3,354,181) (23,735) (46,503,408) (49,881,324) NET POSITION (DEFICIT) - Beginning as previously reported 27,473,570 (103,693,329) 121,231,324 45,011,565 Error correction - 103,937,814 (36,970,793) 66,967,021 Net Position (Deficit) - Beginning, as restated 27,473,570 244,485 84,260,531 111,978,586 NET POSITION (DEFICIT) - ENDING 24,119,389$ 220,750$ 37,757,123$ 62,097,262$ 211
212
Page No.
Financial Trends
214-221These schedules contain information to help the reader understand how the city's financial performance and well-being have changed over time.
Revenue Capacity
222-225These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes.
Debt Capacity
226-232These schedules present information to help the reader assess the 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 233-235
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 236-237
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. 213
CITY OF CHULA VISTA
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year 2015 2016 2017 2018 2019
Governmental activities:
Net investment in capital assets 643,174,160$ 672,940,012$ 1,031,902,782$ 963,595,553$ 997,561,287$ Restricted 129,460,665 125,439,323 128,114,370 143,958,910 167,223,184 Unrestricted (245,432,296)
(222,570,459) (222,843,737) (139,744,867) (139,394,302) Total governmental activities net position 527,202,529 575,808,876 937,173,415 967,809,596 1,025,390,169 Business-type activities:
Net investment in capital assets 134,368,634 135,989,851 331,199,513 327,687,650 322,072,495 Restricted 5,141,430 2,803,451 2,593,403 - -
Unrestricted 71,945,411 67,970,476 72,366,978 78,539,054 90,839,632 Total business-type activities net position 211,455,475 206,763,778 406,159,894 406,226,704 412,912,127 Primary government:
Net investment in capital assets 777,542,794 808,929,863 1,363,102,295 1,291,283,203 1,319,633,782 Restricted 134,602,095 128,242,774 130,707,773 143,958,910 167,223,184 Unrestricted (173,486,885) (154,599,983) (150,476,759) (61,205,813) (48,554,670) Total primary government net position 738,658,004$ 782,572,654$ 1,343,333,309$ 1,374,036,300$ 1,438,302,296$ 214
2020 2021 2022 2023 2024
1,048,711,594$ 1,092,307,720$ 1,139,225,615$ 1,228,680,322$ 1,278,956,534$ 181,367,432 196,782,954 230,821,470 287,363,139 345,239,190 (135,426,227) (123,311,317) (109,552,312) (120,215,065) (88,511,320) 1,094,652,799 1,165,779,357 1,260,494,773 1,395,828,396 1,535,684,404 317,722,714 317,133,368 324,179,036 325,567,886 332,386,152 - 565,547 - - -
102,067,475 107,279,738 136,075,366 152,394,676 162,993,067 419,790,189 424,978,653 460,254,402 477,962,562 495,379,219 1,366,434,308 1,409,441,088 1,463,404,651 1,554,248,208 1,611,342,686 181,367,432 197,348,501 230,821,470 287,363,139 345,239,190 (33,358,752) (16,031,579) 26,523,054 32,179,611 74,481,747 1,514,442,988$ 1,590,758,010$ 1,720,749,175$ 1,873,790,958$ 2,031,063,623$ 215
CITY OF CHULA VISTA
Changes in Net Position
Last Ten Fiscal Years
Fiscal Year 2015 2016 2017 2018 2019
Expenses:
Governmental activities:
General government 36,693,953$ 25,564,824$ 35,375,230$ 29,311,449$ 27,922,521$ Public safety 81,002,999 87,749,418 94,716,683 106,802,130 111,269,341 Community development - 1,974,046 1,552,750 18,617,269 11,153,109 Community services 12,837 5,632 14,990 - - Public works 62,454,130 67,910,401 68,885,918 72,192,449 57,563,725 Parks and recreation 6,441,907 6,834,240 6,875,635 9,553,392 14,633,191 Library 3,906,984 3,997,677 5,018,878 1,542,733 1,007,869 Interest on long-term debt 6,776,635 6,073,434 4,673,047 7,718,906 6,740,877 Total governmental activities expenses 197,289,445 200,109,672 217,113,131 245,738,328 230,290,633 Business-type activities:
Transit 4,807,985 86,512 39,594 13,008 160,797 Bayfront trolley station 59,863 - - 27 - Transport enterprise - - - - -
Sewer fund 31,615,457 25,234,891 32,179,875 34,857,066 36,815,795 Sewer development impact fees 120,197 1,146,838 8,305 34,547 495,865 Development services fund 5,996,109 5,741,600 6,655,654 10,683,709 10,755,535 Chula Vista Mini Golf Course - - 27,092 - - CV Elite Athlete Training Center - - 449,028 676,260 595,579 Living Coast Discovery Center - - - - -
Total business-type activities expenses 42,599,611 32,209,841 39,359,548 46,264,617 48,823,571 Total primary government expenses 239,889,056 232,319,513 256,472,679 292,002,945 279,114,204 Program revenues:
Governmental activities:
Charges for services:
General government 7,623,676 6,468,756 12,317,921 8,562,792 5,004,895 Public safety 12,100,712 11,764,603 11,997,221 178,674 5,865,227 Community development 297,866 730,197 771,603 17,920,527 4,701,195 Public works 31,703,848 24,218,733 32,598,199 23,487,119 23,562,841 Parks and recreation 4,511,278 10,683,649 8,221,019 1,490,236 2,134,964 Library 1,302,869 1,943,416 1,575,837 872,352 877,744 Operating contributions and grants 25,102,165 22,416,276 22,751,556 21,246,015 20,686,617 Capital contributions and grants 12,954,191 7,143,130 5,619,731 33,859,885 27,052,711 Total governmental activities
program revenues 95,596,605 85,368,760 95,853,087 107,617,600 89,886,194 Business-type activities:
Charges for services:
Transit fund 1,503,262 - - - -
Sewer fund 36,054,603 35,775,374 36,289,930 37,870,947 44,213,351 Sewer DIFs 166,333 239,143 111,907 1,201,669 1,265,579 Development services fund 6,118,566 6,546,936 7,291,037 10,596,287 9,317,298 Chula Vista Muni Golf Course - - - - -
Transport Enterprise - - - - -
Operating grants and contributions 5,474,658 306,884 - 104,899 163,380 Capital grants and contributions - - - - -
Total business-type activities
program revenues 49,317,422
42,868,337 43,692,874 49,773,802 54,959,608
Total primary government
program revenues 144,914,027
128,237,097 139,545,961 157,391,402 144,845,802
Net revenues (expenses):
Governmental activities (101,692,840) (114,740,912) (121,260,044) (138,120,728) (140,404,439) Business-type activities 6,717,811 10,658,496 4,333,326 3,509,185 6,136,037 Total net revenues (expenses) (94,975,029) (104,082,416) (116,926,718) (134,611,543) (134,268,402) General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 47,485,292 50,136,856 53,248,196 56,512,850 59,841,972 Sales tax 41,883,924 33,317,380 36,469,033 57,541,043 73,187,780 Other taxes 23,225,498 24,463,262 24,101,777 32,496,156 35,204,174 Investment income 4,216,186 6,233,144 2,954,403 5,652,663 12,243,685 Other general revenues 12,921,129 1,034,027 8,970 - - Miscellaneous 27,882 336,661 1,677,271 12,675,502 13,963,434 Gain (loss) on sale of capital asset - - - - 102,283 Special Item - - - - -
Transfers 3,848,746 2,799,555 4,180,778 4,170,702 4,339,276 Total governmental activities 133,608,657 118,320,885 122,640,428 169,048,916 198,882,604 Business-type activities:
Investment income 657,343 1,357,938 322,527 1,155,739 4,575,679 Miscellaneous 2,789,595 524,616 198,847,750 414,696 252,213 Gain (loss) on sale of capital asset - - 115,703 - 60,770 Transfers (3,848,746) (2,799,555) (4,180,778) (4,170,702) (4,339,276) Total business-type activities (401,808) (917,001) 195,105,202 (2,600,267) 549,386 Total primary government 133,206,849 117,403,884 317,745,630 166,448,649 199,431,990 Changes in net position
Governmental activities 31,915,817 3,579,973 1,380,384 30,928,188 58,478,165 Business-type activities 6,316,003 9,741,495 199,438,528 908,918 6,685,423 Total primary government 38,231,820$ 13,321,468$ 200,818,912$ 31,837,106$ 65,163,588$ 216
2020 2021 2022 2023 2024
33,033,582$ 18,121,564$ 57,993,429$ 43,199,147$ 46,486,124$ 125,991,666 131,262,122 111,173,472 130,847,798 154,452,619 11,768,626 8,555,836 45,701,258 25,674,814 46,748,103 - - - - -
69,016,706 68,218,192 58,402,021 81,289,367 59,261,678 16,592,077 40,789,923 13,542,362 5,783,062 6,324,693 1,107,068 4,505,740 2,954,806 3,749,853 4,284,441 6,027,344 8,857,969 15,631,745 13,400,138 12,082,375 263,537,069 280,311,346 305,399,093 303,944,179 329,640,033 13,923 8,461 8,500 8,483 4,946
- - 19 11 30
- 3,634,677 12,006,347 11,191,576 15,104,503
38,523,661 39,808,699 33,398,914 40,934,038 46,870,622 510,789 438,680 305,619 387,959 489,499
9,644,465 10,165,866 8,233,072 10,155,101 11,556,395 - - 2,982,489 3,173,834 3,401,065
691,256 585,009 575,339 1,219,972 501,587
95,405 101,112 118,750 172,989 227,229
49,479,499 54,742,504 57,629,049 67,243,963 78,155,876 313,016,568 335,053,850 363,028,142 371,188,142 407,795,909 1,194,045 3,685,466 6,763,379 1,943,828 1,713,291 8,154,003 6,912,095 7,752,570 8,933,510 7,550,885 46,290,223 10,780,843 5,836,312 9,647,486 2,285,392 24,140,150 20,949,678 30,823,899 30,697,778 33,587,379 2,066,000 1,576,819 2,101,823 2,479,537 2,182,815 653,790 701,945 810,146 604,712 535,093
16,656,454 25,787,760 47,300,700 54,392,158 59,427,500 25,449,043 59,987,995 58,796,673 62,001,863 88,972,816 124,603,708 130,382,601 160,185,502 170,700,872 196,255,171 - - - - -
44,740,438 42,091,953 49,050,723 49,117,788 48,861,451 834,494 594,707 886,029 832,475 -
9,269,133 10,617,448 10,807,052 9,298,438 8,607,228 - - 3,300,593 3,214,664 3,534,111
- - 19,980,980 18,224,005 23,865,048
33,893 185,587 - - 1,058,922
- 2,672,900 - - 5,292,292
54,877,958 56,162,595 84,025,377 80,687,370 91,219,052 179,481,666 186,545,196 244,210,879 251,388,242 287,474,223 (138,933,361) (149,928,745) (145,213,591) (133,243,307) (133,384,862) 5,398,459 1,420,091 26,396,328 13,443,407 13,063,176 (133,534,902) (148,508,654) (118,817,263) (119,799,900) (120,321,686) 62,905,983 66,864,796 69,565,097 75,655,629 79,895,724 78,964,672 92,895,930 102,428,825 103,350,833 106,895,750 35,247,893 38,175,933 41,671,204 46,690,873 33,009,350 14,062,136 4,836,055 (6,855,109) 9,523,650 32,189,702 - - - - -
13,897,888 12,696,745 21,755,785 11,184,009 14,094,288 - 105,741 192,543 (296,411) 25,291
- - - (2,765,896) -
4,352,954 4,664,733 7,527,863 7,965,818 7,130,765 209,431,526 220,239,933 236,286,208 251,308,505 273,240,870 5,450,627 1,175,687 (3,650,561) 2,319,648 8,753,432 380,617 7,245,994 16,545,269 9,730,345 2,730,814 1,313 11,425 47,609 70,150 -
(4,352,954) (4,664,733) (7,527,863) (7,965,818) (7,130,765) 1,479,603 3,768,373 5,414,454 4,154,325 4,353,481 210,911,129 224,008,306 241,700,662 255,462,830 277,594,351 70,498,165 70,311,188 91,072,617 118,065,197 139,856,008 6,878,062 5,188,464 31,810,782 17,597,732 17,416,657 77,376,227$ 75,499,652$ 122,883,399$ 135,662,929$ 157,272,665$ 217
2015 2016 2017 2018 2019
CITY OF CHULA VISTA
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
General fund:
Nonspendable 7,419,002$ 1,527,055$ 7,363,413$ 7,676,350$ 7,578,086$ Restricted - - - - -
Committed 7,602,021 6,417,095 5,938,600 64,147,929 46,370,754 Assigned 4,688,124 4,315,568 8,526,339 11,866,874 41,546,738 Unassigned 16,412,879 25,132,939 20,020,613 24,512,363 23,378,859 Total general fund 36,122,026 37,392,657 41,848,965 108,203,516 118,874,437 All other governmental funds:
Nonspendable -$ 5,834,630$ 5,460$ 3,459$ 4,277$ Restricted 129,464,688 125,439,323 128,114,370 143,915,260 167,241,347 Committed 9,584,176 9,068,623 6,583,603 6,303,075 5,219,729 Assigned - 1,459,891 - 10,891 64,202
Unassigned (37,216,118) (26,983,855) (19,394,021) (4,433) (2,147,643) Total all other governmental funds 101,832,746$ 114,818,612$ 115,309,412$ 150,228,252$ 170,381,912$ 218
2020 2021 2022 2023 2024
9,290,599$ 12,559,029$ 12,121,324$ 5,302,883$ 3,852,303$ - 1,042,970 9,465,060 25,673,596 28,369,808
11,082,859 11,904,304 11,731,844 18,253,033 29,455,853 66,514,060 65,282,025 79,567,415 75,747,000 93,284,726 25,636,659 28,315,924 27,682,371 24,895,945 25,853,339 112,524,177 119,104,252 140,568,014 149,872,457 180,816,029 189,587$ 519,258$ 504,336$ 490,908$ 500,843$
181,367,432 195,739,984 220,356,410 261,198,635 316,368,539 5,321,988 5,344,272 - - -
122,922 - - - -
(878,624) (2,583,780) (1,978,532) (2,429,054) (2,070,068) 186,123,305$ 199,019,734$ 218,882,214$ 259,260,489$ 314,799,314$ 219
CITY OF CHULA VISTA
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year 2015 2016 2017 2018 2019
Revenues:
Taxes 112,594,714$ 110,452,962$ 121,462,604$ 139,296,422$ 157,824,296$ Licenses and permits 1,322,254 1,328,020 1,290,968 1,601,980 2,367,165 Fines and forfeitures 2,280,880 1,942,656 1,805,508 2,035,823 2,218,235 Investment income (loss) 5,044,602 7,006,545 3,766,457 5,682,112 12,212,190 Developer fees 7,484,592 11,657,266 8,810,178 23,506,237 18,068,217 Intergovernmental 26,409,294 23,868,074 23,427,460 25,522,199 26,409,517 Charges for services 20,112,124 22,647,645 26,662,094 23,630,103 24,925,513 Contributions - - - 11,176,064 15,244,658
Other 15,932,194 15,839,288 23,529,357 21,132,605 17,419,459 Total revenues 191,180,654 194,742,456 210,754,626 253,583,545 276,689,250 Expenditures
Current:
General government 26,413,901 29,087,838 33,218,003 23,723,205 23,452,836 Public safety 80,235,099 83,637,644 87,731,136 95,424,528 101,580,642 Public works 41,459,698 49,775,141 45,135,590 37,856,917 29,974,482 Community Development - 1,974,046 2,030,654 17,601,341 10,860,838 Parks and recreation 3,746,349 4,059,567 4,246,605 4,276,366 11,208,237 Library 3,625,949 3,969,307 4,721,120 3,943,063 3,948,154 Capital outlay 22,216,530 12,976,408 19,172,666 40,843,898 49,253,675 Debt service:
Principal retirement 5,340,205 34,980,737 6,110,055 11,898,280 11,760,783 Interest and fiscal charges 6,678,144 6,437,941 5,194,264 8,382,476 8,023,403 Payment to refunded bond escrow agent - 422,751 2,673,892 - - Total expenditures 189,715,875 227,321,380 210,233,985 243,950,074 250,063,050 Excess (deficiency) of
revenues over (under)
expenditures 1,464,779 (32,578,924) 520,641 9,633,471 26,626,200 Other financing sources (uses):
Transfers in 30,478,465 21,708,446 27,905,430 49,858,764 20,965,197 Transfers out (27,503,760) (18,897,272) (25,949,256) (47,177,986) (16,625,921) Proceeds from long-term debt 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 - - - 1,285,053 759,697
Total other financing sources (uses) 54,553,316 3,389,398 31,791,154 4,426,467 5,098,973 Special item - - - - -
Net change in fund balances 56,018,095$ (29,189,526)$ 32,311,795$ 14,059,938$ 31,725,173$ Debt service as a percentage of
noncapital expenditures 6.3% 18.2% 5.4% 8.3% 7.9%
220
2020 2021 2022 2023 2024
166,215,250$ 185,983,649$ 201,616,493$ 212,781,244$ 221,057,091$ 1,834,236 2,005,923 1,962,967 1,961,064 2,297,513 1,670,628 1,346,492 1,572,303 1,598,385 1,608,889 14,062,136 4,836,055 (6,841,017) 9,499,084 29,173,119 10,653,015 15,955,351 25,983,157 28,445,159 33,409,005 27,836,371 37,274,120 67,809,266 69,732,761 100,392,614 27,616,079 30,993,090 38,459,855 40,032,188 44,500,467 11,984,032 7,679,652 - - -
16,225,790 19,790,763 11,027,272 8,663,030 13,362,601 278,097,537 305,865,095 341,590,296 372,712,915 445,801,299 28,002,094 81,861,532 56,671,621 39,194,530 40,475,403 114,661,942 286,042,703 109,040,668 117,430,150 134,214,791 33,284,800 87,018,056 34,949,572 46,209,666 52,207,575 10,951,941 19,453,357 45,770,658 24,315,988 12,474,087 10,661,708 44,357,263 11,596,166 4,837,190 5,169,651 3,580,413 10,709,718 3,115,863 3,478,517 3,624,609 51,371,872 49,508,887 31,055,664 62,025,766 81,249,576 12,810,263 13,254,548 20,191,204 22,461,553 23,772,458 7,348,481 7,961,316 15,626,455 13,074,203 13,492,824 - - - - -
272,673,514 600,167,380 328,017,871 333,027,563 366,680,974 5,424,023 (294,302,285) 13,572,425 39,685,352 79,120,325 22,619,355 31,219,762 51,475,566 58,865,855 93,497,017 (18,443,510) (26,732,447) (44,115,233) (51,139,125) (86,976,023) - - 3,426,935 - -
- 308,476,104 - - -
- - - - -
- - - - -
- - - 404,808 841,078
- - - 3,986,967 -
1,023,800 - 13,323,750 - -
5,199,645 312,963,419 24,111,018 12,118,505 7,362,072 - - - (2,765,896)
10,623,668$ 18,661,134$ 37,683,443$ 49,037,961$ 86,482,397$
7.4% 3.5% 10.9% 10.7% 10.2%
221
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
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% 2024 39,769,182,364 832,997,140 (1,824,784,127) 38,777,395,377 0.1437% 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. 222
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 0.1437 0.1438 0.1438 0.1438 0.1437 Overlapping Rates:
Chula Vista Elementary School District Bonds 0.0475 0.0430 0.0432 0.0359 0.0392 0.0374 0.0646 0.0628 0.0505 0.0623 Sweetwater Union High School District Bonds 0.0541 0.0517 0.0516 0.0516 0.0528 0.0516 0.0488 0.0461 0.0691 0.0646 Southwestern Community College Bonds 0.0358 0.0396 0.0386 0.0498 0.0467 0.0448 0.0279 0.0485 0.0422 0.0458 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 1.1409 1.1378 1.1369 1.1408 1.1422 1.1373 1.1448 1.1609 1.1653 1.1762 *Breakdown of the County of San Diego 1.00 Rate:
County General 0.15928411
Gen Elem Chula Vista 0.29035206
High Sweetwater Union 0.18779946
Southwestern Community College 0.05062263
County School Service 0.00783527
County School Service - Capital Outlay 0.00216716
Childrens Institutions Tuition 0.00186755
Regional Occupational Centers 0.00509063
Chula Vista Project (19/84601) 0.00023731
Chula Vista Project (19/84602) 0.00040896
Educational Revenue Augmentation Fund 0.14682124
Chula Vista City 0.14374232
South Bay Irrigation -
CWA South Bay Irrigation 0.00377130
San Diego Unified Port -
Total
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.
Source: County of San Diego Property Tax Services and ACAP 345B
1.00000000
223
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. 191,780,486$ 1 0.49% 225,819,454$ 1 0.98% John Hancock Life Insurance Co USA 164,393,713.00 2 0.42% - - - R-12 B LLC 139,463,864 3 0.36% - - -
Chula Vista Apartments LLC 137,483,735 4 0.35% - - - Regulo Place Apartments Invest 127,738,226 5 0.33% 100,348,224 4 0.43% Mark II LLP 121,259,491 6 0.31% - - -
1925 Avenida Escaya Investors LLC 121,000,000 7 0.31% - - - Homefed Otay Land II LLC 119,587,659 8 0.31% - - - Ryan Millenia Owner LLC 117,674,066 9 0.30% - - -
Rivue MCA LLC 114,957,235 10 0.30% - - -
JPB Development - - - 206,435,871 2 0.89%
Brisa Acquisitions LLC - - - 117,000,000 3 0.51% EQR Teresina LP - - - 68,091,753 8 0.29%
Vista Pacific Villas LP - - - 89,856,103 5 0.39% Chula Vista Center LLC - - - 70,679,733 7 0.31% Camden USA Inc - - - 65,770,597 9 0.28%
Olympic Pointe West Communities - - - 79,773,634 6 0.35% Essel LP - - - 51,803,100 10 0.22%
Total 1,355,338,475$ 3.48% 1,075,578,469$ 4.65%
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 2024 2015
224
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
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% 2024 45,518,625 45,005,784 98.87% 338,213 45,343,998 99.62% 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
225
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
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 2024 300,182,736 3,740,982 109,161,226 - 298,299 6,959,783 1,380,985 421,724,011 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 FY2024 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. 226
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
-$ -$ -$ -$ -$ -$ 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% 1,722 26,932,829 - 184,617 3,630,290 - 30,747,736 498,479,631 2.87% 1,698 26,243,279 - - 2,736,251 487,080 29,466,610 476,869,054 2.69% 1,616 25,537,264 - - 1,833,251 285,963 27,656,478 449,380,489 n/a** n/a** Business-Type Activities
227
CITY OF CHULA VISTA
Ratios 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
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% 1,271
2022 343,520,000 343,520,000 1.02% 1,247
2023 334,725,000 334,725,000 0.92% 1,209
2024 325,720,000 325,720,000 0.84% n/a *
* Per Capita estimate from SANDAG for FY2024 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.
228
38,777,3
95,377$
Total Debt City's Share of Debt
6/30/2024 % Applic able 1 6/30/2024
18,210,000$ 1.000% 182,100$
739,044,345 50.187% 370,904,185
596,765,971 59.448% 354,765,434
198,022,000 88.194% 174,643,523
72,395,000 81.010% 58,647,190
34,637,000 3.591% 1,243,815
100,190,000 100.000% 100,190,000
9,263,412 100.000% 9,263,412
54,824 100.000% 54,824
2,950,217 100.000% 2,950,217
1,565,911 100.000% 1,565,911
781,242 64.964% 507,526
3,433,353 100.000% 3,433,353
2,192,960 21.762% 477,232
2,285,476 100.000% 2,285,476
1,031,377 100.000% 1,031,377
1,319,203 100.000% 1,319,203
2,446,521 100.000% 2,446,521
1,432,277 100.000% 1,432,277
1,528,219 100.000% 1,528,219
2,357,432 100.000% 2,357,432
54,824 100.000% 54,824
2,240,000 100.000% 2,240,000
39,380,000 100.000% 39,380,000
9,670,000 100.000% 9,670,000
410,241 100.000% 410,241
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT 1,142,984,292$ DIRECT AND OVERLAPPING GENERAL FUND DEBT:
San Diego County General Fund Obligations 374,600,000$ 5.516% 20,662,936$ San Diego County Pension Obligation Bonds 211,225,000 5.516% 11,651,171 San Diego County Superintendent of Schools Obligations 6,050,000 5.516% 333,718 Sweetwater Union High School District General Fund Obligations 390,000 59.448% 1 231,847 Chula Vista City School District Certificates of Participation 167,735,000 88.194% 147,932,206 City of Chula Vista General Fund Obligations 121,541,271 100.000% 121,541,271 2 City of Chula Vista Pension Obligation Bonds 300,182,734 100.000% 300,182,734 TOTAL DIRECT AND OVERLAPPING GENERAL FUND DEBT 602,535,883$ OVERLAPPING TAX INCREMENT DEBT (Successor Agency): 17,015,000$ 99.711% 16,965,827$ TOTAL DIRECT DEBT 421,724,005$
TOTAL OVERLAPPING DEBT 1,340,761,997
COMBINED TOTAL DEBT 1,762,486,002$ 3
1 2
3 Ratios to 2023-24 Assessed Valuation:
Total Overlapping Tax and Assessment Debt 2.95%
Total Direct Debt 421,724,005 1.09%
Combined Total Debt 4.55%
Ratios to Redevelopment Successor Agency Incremental Valuation 2,434,965,524$ Total Overlapping Tax Increment Debt 0.70%
Sources: California Municipal Statistics, Inc.
City Finance Department
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, notes payable, financed purchases, bond premium, leases and subscriptions.
Excludes tax and revenue anticipation notes, enterprise revenue and mortgage revenue. Qualified Zone Academy Bonds are included based on principal due at maturity.
CITY OF CHULA VISTA
Direct and Overlapping Debt
June 30, 2024
2023-24 Assessed Valuation:
OVERLAPPING TAX AND ASSESSMENT DEBT:
Metropolitan Water District
Southwestern Community College District
Sweetwater Union High School District
Chula Vista City School District
Chula Vista City School District Schools Facilities Improvement District No. 1 National School District
City of Chula Vista Community Facilities Districts
Sweetwater Union High School District Community Facilities District No. 1 Sweetwater Union High School District Community Facilities District No. 2 Sweetwater Union High School District Community Facilities District No. 3 Sweetwater Union High School District Community Facilities District No. 4 Sweetwater Union High School District Community Facilities District No. 5 Sweetwater Union High School District Community Facilities District No. 6 Sweetwater Union High School District Community Facilities District No. 10 Sweetwater Union High School District Community Facilities District No. 11 Sweetwater Union High School District Community Facilities District No. 12 Sweetwater Union High School District Community Facilities District No. 13 Sweetwater Union High School District Community Facilities District No. 14 Sweetwater Union High School District Community Facilities District No. 15 Sweetwater Union High School District Community Facilities District No. 16 Sweetwater Union High School District Community Facilities District No. 17 Sweetwater Union High School District Community Facilities District No. 18 City of Chula Vista 1915 Act Bonds
California Municipal Financing Authority Community Facilities District No. 2021-11 California Municipal Financing Authority Community Facilities District No. 2022-27 California Statewide Communities Development Authority 1915 Act Bonds 229
2015 2016 2017 2018 2019
23,090,440$ 24,455,999$ 25,776,075$ 27,351,592$ 28,863,885$ 25% 25% 25% 25% 25%
5,772,610 6,114,000 6,444,019 6,837,898 7,215,971 15% 15% 15% 15% 15%
865,892 917,100 966,603 1,025,685 1,082,396
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 865,892$ 917,100$ 966,603$ 1,025,685$ 1,082,396$ Total debt applicable to the limit
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0% 0.0%
County of San Diego Property Tax Services
Note:
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.
Sources: City Finance Department
230
2020 2021 2022 2023 2024
30,596,088$ 32,404,145.562$ 33,593,920.198$ 36,378,054.812$ 38,777,395.377$ 25% 25% 25% 25% 25%
7,649,022 8,101,036.391 8,398,480.050 9,094,513.703 9,694,348.844 15% 15% 15% 15% 15%
1,147,353 1,215,155 1,259,772 1,364,177 1,454,152 - 350,025 343,520.000 334,725.000 325,720.000
1,147,353$ 865,130$ 916,252$ 1,029,452$ 1,128,432$
0.0% 28.8% 27.3% 24.5% 22.4%
231
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.
232
CITY OF CHULA VISTA
Full-time and Part-time City Employees
by Function
Last Ten Fiscal Years
Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Government 288 205 210 198 160 160 172 165 189 181 Public Safety 469 470 474 492 527 554 620 642 656 704 Public Works/Engr 161 241 228 228 184 180 189 185 251 260 Parks and Recreation 161 176 153 158 229 69 137 192 164 161 Library 88 70 77 73 74 24 39 53 66 64 Development Services 49 57 55 58 73 71 69 71 72 73 Total 1,216 1,219 1,197 1,207 1,247 1,058 1,226 1,308 1,398 1,443 Source: City Finance Department
233
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 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% 10.7% 15,598,460 57,057 2021 275,498 8.3% 0.8% 32.9 3.23 82.6% 33.0% 8.9% 7.5% 16,658,152 60,482 2022 275,428 8.4% -0.03% 37.0 3.19 87.1% 34.2% 10.1% 4.0% 16,307,159 59,207 2023 276,813 8.4% 50.0% 37 3.17 86.1% 34.1% 6.0% 4.2% 16,628,622 60,072 2024 n/a* n/a* n/a* n/a* n/a* n/a* n/a* n/a* n/a* n/a* n/a* Educational Attainment
* SANDAG estimates for FY2024 are not available.
Source: 1California Department of Finance, "January Population and Housing Estimates"; 2SANDAG Estimates Program; 3American Community Survey (ACS) 1-Year Estimates, Tables B15003 (Educational Attainment) and B17001 (Poverty); 4California Employment Development Department (EDD), Local Area Unemployment Statistics (LAUS), Annual Average; 5U.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) Notes: 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 latest year dollars. Personal Income and PCPI for 2023 were estimated using the prior year's region's PCPI from BEA as 2023 was unavailable.
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." 234
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 3,983 1 6.08% 4,121 1 7.05% Chula Vista Elementary School District 3,923 2 5.99% 3,135 2 5.36% Sharp Chula Vista Medical Center 3,114 3 4.75% 1,878 5 3.21% Southwestern Community College 1,994 4 3.04% 1,918 4 3.28% Wal-Mart 1,451 5 2.22% 1,239 6 2.12%
City of Chula Vista 1,443 6 2.20% 1,178 7 2.02%
Rohr Inc./Goodrich Aerospace 1,303 7 1.99% 2,468 3 4.22% Scripps Mercy Hospital Chula Vista 1,073 8 1.64% 1,058 8 1.81% SBCS Corporation 1,004 9 1.53% - - -
Costco Wholesale 777 10 1.19% 597 9 1.02%
24 Hour Fitness - - - 559 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 65,504 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
2024 2015
235
CITY OF CHULA VISTA
Operating Indicators by Function
Last Ten Fiscal Years
Fiscal Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Police:
Citizen-initiated calls for service 64,486 67,512 65,672 65,643 64,066 66,470 65,537 66,882 61,623 61,951 Fire: ¹
Number of emergency calls 18,328 19,612 19,612 21,397 21,803 22,843 24,794 30,895 31,711 29,466 Inspections 4,209 4,207 4,207 3,907 3,862 4,029 6,071 7,776 9,479 8,205 Public works:
Street resurfacing/maintenance ²
61,640 39,338 61,640 16,178 14,734 61,640 32,923 35,859 26,302 17,237 (square feet)
Parks and recreation: ³
Number of recreation classes 2,388 3,859 3,124 2,658 3,552 2,008 575 2,303 2,408 200 Number of facility rentals 1,921 1,573 1,482 688 771 1,100 121 525 663 3,277 Library:
Circulation 839,616 706,594 706,594 637,119 539,762 500,195 115,005 502,326 498,753 497,654 Attendance ⁴
803,535 857,475 857,475 958,117 1,635,849 961,848 162,300 958,723 922,542 921,675 Sewer:
New connections 210 2,211 211 502 1,456 1,628 425 107 187 150 Average daily sewage treatment 15.5 15.4 15.4 15.2 15.9 16.6 16.1 16.8 17.0 16.5 (millions of gallons)
1 Emergency calls and inspections reported by calendar year. 2 Excludes filling of potholes and crack sealing.
3 Parks and Recreation closed majority of FY2021, offered limited number of classes and rentals in between. 4 Library closed from March 2020 to May 2021.
Source: City of Chula Vista
236
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
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 10 10 10 10 10 Public works:
Streets (miles) 433.9 433.9 433.9 434.2 434.2 445.2 445.2 445.2 447.0 450.2 Streetlights ³ 9,069 9,144 9,282 9,539 9,787 9,818 9,828 9,921 9,952 9,984 Traffic signals ³ 273 275 275 282 288 294 301 303 315 319 Parks and recreation:
Parks (acreage) 1 557.2 557.2 708.0 660.0 660.0 704.0 716.9 722.0 560.0 560.0 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) ² 514.3 514.6 514.6 514.6 514.6 516.8 517.0 522.4 527.9 533.0 Storm drains (miles) ² 263.2 266.2 269.6 272.4 273.8 280.6 282.5 307.1 316.7 318.7 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 FY2024. 3 Updated Public Works: Streetlights and Traffic Signals per GASB 34 in FY2024.
Source: City of Chula Vista
237
238
735 E. Carneg ie Dr . Suit e I 00
San Bernardino . CA 92408
909 889 0871 T
909 889 5361 F
ramscpa . net
PARTNERS
Scott W Manno. CPA. CGMA
Leena Shanbhag, CPA. MST. CGMA
Bradferd A. Welebir. CPA. MBA. CGMA
Jenny W. Liu. CPA, MST
Ga,·denya Duran, CPA, CGMA
Brianna Schultz, CPA. CGMA
Brenda L. Odle. CPA. MST (Partne, Emeritus)
Te, ry P Shea, CPA (Panner Emenws)
MANAGERS/ STAFF
Seong-Hyea Lee. CPA. MBA
Evelyn Morenlin-Barcena. CPA
Vernnica Hernandez, CPA
Laura A1v1zu. CPA
John Maldonado, CPA, MSA
Julia Rodriguez Fuentes. CPA, MSA
Dem, Hite. CPA
Jeffrey McKennan. CPA
Mornca Wysock,, CPA
Jacob Weatherb,e. CPA, MSA
Bolim Han. CPA. MAcc
A nny Gonzalez, CPA
MEMBERS
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CERTIFIED PUBLIC ACCOUNTANTS. SINCE 1948
STAB ILITY . ACCURACY. TRUST.
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
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
City of Chula Vista
Chula Vista, California
We have audited, in accordance with the 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 (Government Auditing Standards), the 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 (the entity) as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the entity’s basic financial statements, and have issued our report thereon dated December 11, 2024.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the entity’s internal control over financial reporting (internal control) as a basis for designing 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 entity’s internal control. Accordingly, we do not express an opinion on the effectiveness of the entity’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow 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 basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
239
Our consideration of internal control was for the l
imited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control 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 entity’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 material 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.
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 effectiveness of the entity’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 entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
San Bernardino, California
December 11, 2024
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