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HomeMy WebLinkAbout2014/01/28 City Council Agenda Packet City of Rohnert Park ♦ 130 Avram Avenue ♦ Rohnert Park, California 94928 PHONE: (707) 588-2227♦ FAX: (707) 792-1876 ♦ WEB: www.rpcity.org ROHNERT PARK CITY COUNCIL Rohnert Park Financing Authority (RPFA) Successor Agency to the Community Development Commission (CDC) JOINT REGULAR MEETING AGENDA Tuesday, January 28, 2014 Open Session: 5:00 p.m. MEETING LOCATION: CITY HALL - COUNCIL CHAMBER 130 Avram Avenue, Rohnert Park, California The Rohnert Park City Council welcomes your attendance, interest and participation at its regular city meetings scheduled on the second and fourth Tuesdays of each month at 5:00 p.m. in the Council Chamber. City Council/RPFA agendas and minutes may be viewed at the City’s website: www.rpcity.org. PUBLIC HEARINGS: Council/RPFA may discuss and/or take action on any or all of the items listed on this agenda. If you challenge decisions of the City Council or the Rohnert Park Financing Authority of the City of Rohnert Park in court, you may be limited to raising only those issues you or someone else raised at public hearing(s) described in this agenda, or in written correspondence delivered to the City of Rohnert Park at, or prior to the public hearing(s). RIGHT TO APPEAL: Judicial review of any city administrative decision pursuant to Code of Civil Procedure Section 1094.5 may be had only if a petition is filed with the court no later than the deadlines specified in Section 1094.6 of the California Code of Civil Procedure, which generally limits the time within which the decision may be challenged to the 90th day following the date that the decision becomes final. SIMULTANEOUS MEETING COMPENSATION DISCLOSURE (Government Code § 54952.3): Members of the City Council receive no additional compensation as a result of convening this joint meeting of the City Council and the Rohnert Park Financing Authority. PUBLIC COMMENTS: Provides an opportunity for public comment on items not listed on the agenda, or on agenda items if unable to comment at the scheduled time (limited to three minutes per appearance and a 30 minute total time limit, or allocation of time determined by Presiding Officer based on number of speaker cards submitted). PLEASE FILL OUT A SPEAKER CARD PRIOR TO SPEAKING ANNOUNCEMENT: Please turn off all pagers, cellular telephones and all other communication devices upon entering the Council Chamber. Use of these devices causes electrical interference with the sound recording and TV broadcast systems. Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” City of Rohnert Park Joint Regular Meeting Agenda January 28, 2014 for City Council/RPFA/CDC Successor Agency Page 2 of 5 1. CITY COUNCIL/RPFA/SUCCESSOR AGENCY JOINT REGULAR MEETING - CALL TO ORDER/ROLL CALL (Belforte__ Mackenzie__ Stafford __ Ahanotu __ Callinan __) 2. PLEDGE OF ALLEGIANCE By Chase Little, 5th grade Marguerite Hahn Elementary School Student 3. PRESENTATION A. Mayor’s Proclamation: Award of Recognition for Outstanding Community Service be presented to Mark Pippin for the Children’s Holiday Bike Giveaway B. Mayor’s Proclamation: Award of Recognition for Outstanding Community Service be presented to Rosalind Morino for providing tax aid services for seniors C. An overview of issues facing Sonoma County as they relate to Rohnert Park - presentation by Sonoma County 2nd District Supervisor David Rabbitt 4. DEPARTMENT HEAD BRIEFING A. Administration: State drought emergency in California. State and City asking for voluntary water reduction of 20% 5. PUBLIC COMMENTS Persons wishing to address the Council on any Consent Calendar item or on City business not listed on the Agenda may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Council on any report item listed on the Agenda should submit a “Speaker Card” to the City Clerk before announcement of that agenda item. 6. CONSENT CALENDAR All items on the Consent Calendar will be considered together by one or more action(s) of the City Council and/or the Rohnert Park Financing Authority and Successor Agency to the Community Development Commission, whichever is applicable, unless any Council Member or anyone else interested in a consent calendar item has a question about the item. A. Approval of Minutes for: 1. City Council/RPFA/Successor Agency Joint Regular Meeting January 14, 2014 B. Acceptance of Reports for: 1. 2013 Annual Fire Report 2. Alcoholic Beverage Sales Ordinance 2013 Annual Report 3. City Bills/Demands for Payment Dated January 28, 2014 4. Successor Agency to the CDC Bills/Demands for Payment Dated January 28, 2014 5. Housing Successor Agency- Cash Report for Month Ending December 2013 6. Successor Agency- Cash Report for Month Ending December 2013 7. City- Cash Report for Month Ending December 2013 8. RPFA- Cash Report for Month Ending December 2013 9. Quarterly City Council Travel Expenditures City of Rohnert Park Joint Regular Meeting Agenda January 28, 2014 for City Council/RPFA/CDC Successor Agency Page 3 of 5 C. City Council Resolutions for Adoption: 1. 2014-003 Authorize and Approve Amendment 1 to Task Order No. 2013-01 with Green Valley Consulting Engineers for Inspection and Material Testing of the Labath/Business Park Overlay and Traffic Signal Installation 2. 2014-004 Authorize and Approve a Design Professional Services Agreement for the Rohnert Park Expressway Overlay Project No. 2013-01 with Coastland Civil Engineering, Inc. for Design Engineering Services 3. 2014-005 Repeal and Replace Resolution 2010-117 and Authorizing City Officials and Representatives to Perform Examination of Sales or Transactions and Use Tax Records 4. 2014-006 Approve and Accept 1997 Grant Deed from the Rohnert Park District to City of Rohnert Park for Sewer Pump Station and Animal Shelter Property (APN 143-040-002-097 & 098) 5. 2014-007 Authorize and Approve an Employment Agreement between the City of Rohnert Park and Victoria Perrault for Human Resources Director Services Council Motion/Vote 7. FISCAL YEAR 2012-13 FINANCIAL AUDIT A. Presentation of Financial Statements and Independent Audit: 1. City of Rohnert Park Comprehensive Annual Financial Report 2. City of Rohnert Park Financing Authority Basic Financial Statements 3. City of Rohnert Park Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations (GANN) Limit Schedule B. Public Comment C. Council discussion/receive reports 8. CAMPAIGN CONTRIBUTION LIMIT REVIEW ESTABLISHED BY ROHNERT PARK MUNICIPAL CODE §2.65.030 Required review of the $500 contribution limitation and determine if it shall remain the same or be changed A. Staff Report B. Public Comment C. Council discussion/direction 9. DIGITAL BILLBOARD USE POLICY Consideration of amending the policy to allow local nonprofit organizations messages for welcoming new businesses and eliminating Exhibit D (local nonprofit organizations list) A. Staff Report B. Public Comment C. Council discussion/direction City of Rohnert Park Joint Regular Meeting Agenda January 28, 2014 for City Council/RPFA/CDC Successor Agency Page 4 of 5 10. MAYORS’ & COUNCILMEMBERS’ ASSOCIATION MATTERS Consideration of supporting “letters of interest” for appointments to vacancies by the City Selection Committee and the Mayors’ and Councilmembers’ Association Board of Directors on February 13, 2014 A. City Selection Committee Appointments 1. Local Agency Formation Commission (LAFCO) for a four-year term ending May 2018 2. Remote Access Network (RAN) Board (no term, must be filled by a Mayor) B. Mayors’ and Councilmembers’ Association Appointments 1. Sonoma County Child Care Planning Council for a three-year term ending January 2017. C. Council discussion/action 11. STANDING COMMITTEE / LIAISON REPORTS This time is set aside to allow Council members serving on Council committees or on regional boards, commissions or committees to present a verbal report on the activities of the respective boards, commissions or committees on which they serve. No action may be taken. A. Standing Committee Reports B. Liaison Reports 1. Senior Citizens Advisory Commission, 1/16 (Stafford) 2. Chamber of Commerce, 1/21 (Stafford) 3. REMIF Annual Meeting, 1/23 and 24 (Jenkins) C. Other Reports 12. COMMUNICATIONS Copies of communications have been provided to Council for review prior to this meeting. Council Members desiring to read or discuss any communication may do so at this time. No action may be taken except to place a particular item on a future agenda for Council consideration. 13. MATTERS FROM/FOR COUNCIL 14. PUBLIC COMMENTS Persons wishing to address the Council on any Closed Session item or on City business not listed on the Agenda may do so at this time. Each speaker will be allotted three minutes. Those wishing to address the Council on any report item listed on the Agenda should submit a “Speaker Card” to the City Clerk before announcement of that agenda item. 15. CLOSED SESSION A. Recess to Closed Session in Conference Room 2A to Consider: 1. Conference with Labor Negotiators (Government Code §54957.6) Agency designated representative(s): Darrin Jenkins, City Manager Employee Organizations: a. Service Employees’ International Union (SEIU) City of Rohnert Park Joint Regular Meeting Agenda January 28, 2014 for City Council/RPFA/CDC Successor Agency Page 5 of 5 b. Rohnert Park Employees’ Association (RPEA) c. Rohnert Park Public Safety Officers’ Association (RPPSOA) d. Rohnert Park Public Safety Managers’ Association (RPPSMA) e. Management Unit f. Confidential Unit g. Unrepresented Employees 2. Personnel Matters (Government Code §54957) Public Employee Performance Evaluation – Title: City Manager B. Reconvene Joint Regular Meeting Open Session In Council Chamber C. Mayor’s Report On Closed Session (Government Code § 54957.1) 16. ADJOURNMENT CERTIFICATION OF POSTING OF AGENDA I, JoAnne Buergler, City Clerk for the City of Rohnert Park, declare that the foregoing agenda for the January 28, 2014, Joint Regular Meeting of the Rohnert Park City Council/RPFA was posted and available for review on January 23, 2014, at Rohnert Park City Hall, 130 Avram Avenue, Rohnert Park, California 94928. The agenda is also available on the City web site at www.rpcity.org, Executed this 23rd day of January, 2014, at Rohnert Park, California. ___________________________________________ JoAnne M. Buergler, City Clerk NOTE: Time shown for any particular matter on the agenda is an estimate only. Matters may be considered earlier or later than the time indicated depending on the pace at which the meeting proceeds. If you wish to speak on an item under discussion by the Council which appears on this agenda, after receiving recognition from the Mayor, please walk to the rostrum and state your name and address for the record. Any item raised by a member of the public which is not on the agenda and may require Council action shall be automatically referred to staff for investigation and disposition which may include placing on a future agenda. If the item is deemed to be an emergency or the need to take action arose after posting of the agenda within the meaning of Government Code Section 54954.2(b), Council is entitled to discuss the matter to determine if it is an emergency item under said Government Code and may take action thereon. DISABLED ACCOMMODATION: If you have a disability which requires an interpreter or other person to assist you while attending this City Council meeting, please contact the City Clerk’s Office at (707) 588- 2227 at least 72 hours prior to the meeting to ensure arrangements for accommodation by the City. Please notify the City Clerk’s Office as soon as possible if you have a visual impairment requiring meeting materials to be produced in another format (Braille, audio-tape, etc.) AGENDA REPORTS & DOCUMENTS: Copies of all staff reports and documents subject to disclosure that relate to each item of business referred to on the agenda are available for public inspection at City Hall located at 130 Avram Avenue, during regular business hours, Monday through Friday from 8:00 am to 5:00 pm. Any writings or documents subject to disclosure that are provided to all, or a majority of all, of the members of the City Council regarding any item on this agenda after the agenda has been distributed will also be made available for inspection at City Hall during regular business hours. Office of the Mayor of the City of Rohnert Park, California P r o c l a m a t i o n Proclaiming that an Award of Recognition for Outstanding Community Service be presented to M a r k P i p p i n WHEREAS, Mark Pippin, owner of Innovative Screen Printing, held his second Children’s Holiday Bike Giveaway on December 19th; and WHEREAS, he purchased 190 new bikes and helmets (35 helmets were donated) and gave them to disadvantaged children who were selected by teachers from Rohnert Park City schools; all bikes and helmets that were left over were donated to the Boys & Girls Club; and WHEREAS; Mark has a long history of unselfishly giving back to the Rohnert Park Community whenever he sees a need. In just the last few months he purchased new turf for the Alicia Park baseball infield and is planning on purchasing lumber and paint to refurbish the backstops and snack shack before the next baseball season begins, he purchased new computers for the Boys & Girls Club, and is purchasing a passenger van for Honor Jackson to transport kids to and from activities, along with other cash donations. NOW, THEREFORE, BE IT PROCLAIMED that I, Joseph T. Callinan, as Mayor and on behalf of the City Council of the City of Rohnert Park, do hereby recognize and honor Mark Pippin for the significant contributions he has made as a business leader and as a pillar of this Community. Thank you. Proclaimed this 28th day of January, 2014 by: ___________________________________ Joseph T. Callinan, Mayor Office of the Mayor of the City of Rohnert Park, California P r o c l a m a t i o n Proclaiming that an Award of Recognition for Outstanding Community Service be presented to ROSALIND MORINO For her Tax Services to Rohnert Park Seniors WHEREAS, Rosalind Morino retired in 1993 from the Internal Revenue Service as a Taxpayer Service Specialist and moved with her husband to Rohnert Park; and WHEREAS, Rosalind, who was the lead instructor for Tax-Aide in Sonoma County, began to volunteer at the Rohnert Park Senior Center to help seniors with their taxes. When the Franchise Tax Board offered a summer rebate program for seniors, she initiated every Friday morning year-round sessions. When the rebate was eliminated, she willingly continued to help seniors with their tax problems and planning; and WHEREAS, the Rohnert Park Senior Center is the only site to offer such a service in Sonoma County or in the North Bay. NOW, THEREFORE, BE IT PROCLAIMED that I, Joseph Callinan, as Mayor and on behalf of the City Council of the City of Rohnert Park, do hereby recognize, honor, and thank Rosalind Morino for her 20 years of volunteer service to this community. We send our best wishes with Rosalind, her husband Jim, and Granddaughter Venice. She will be missed. Proclaimed this 28th day of January, 2014 _______________________________ by: Joseph T. Callinan, Mayor 1 Meeting Date: January 28, 2014 Department: Administration Submitted By: Darrin Jenkins, City Manager Agenda Title: State Drought Emergency in California. State and City Asking for Voluntary Water Reduction of 20%. RECOMMENDED ACTION: That the Rohnert Park City Council alert our citizens to the unprecedented serious drought matter facing our state and request that the citizens of the City of Rohnert Park voluntarily reduce water consumption by 20%. BACKGROUND: This is the third consecutive year of dry weather in California. Rivers are running low and snowpack is meager. Dry weather also has increased the threat of wildfire with record acreage burning this month. The U.S. Department of Agriculture has designated 27 of California’s 58 counties as natural disaster areas because of the drought. ANALYSIS: At this point reduction in water use remains voluntary; however, it could move to mandatory if the situation does not improve. Department Head Approval Date: N/A City Manager Approval Date: N/A City Attorney Approval Date: N/A Attachments (list in packet assembly order): Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT Lidster, Beth From: Sent: Subject: For Immediate Release January 21,2014 CONTACT: Brad Sherwood Brad Sherwood <Brad.Sherwood@scwa.ca.gov> Tuesday, January 21, 2014 8:14AM Statement from Sonoma County Water Agency Regarding Governor's Drought Declaration SO NOM.-\ I. HI '-I ~ WATER Sonoma County Water Agency PRESS RELEASE Community & Governmental Affairs Manager 707.547.1927 (office) sherwood@scwa.ca.gov Statement from Sonoma County Water Agency Regarding Governor's Drought Declaration There's a drought on. Turn your water off. (Santa Rosa, CA) The Sonoma County Water Agency issued the following statement on Governor Jerry Brown's formal declaration today of a statewide drought. "The Sonoma County Water Agency is pleased that the governor took the necessary action of declaring an official statewide drought. The Water Agency will work with the appropriate state agencies to ensure all tools provided by the declaration are reviewed and utilized as needed. We began implementing many of the declaration's calls to action ahead oftoday's announcement because we saw the writing on the wall. Our region has experienced consecutive dry years with the driest on record last year. We took immediate action to preserve water in Lake Mendocino when we saw no rain in the forecast and falling reservoir levels. We will get through this drought by working together and saving every drop of water we can," said Water Agency Chairman David Rabbitt. 1 Water Agency Director Efren Carrillo added, "Our region has taken several proactive measure necessary to manage the early onset of this drought. We did so by successfully petitioning the State Water Resources Control Board to provide us with more operational flexibility in Lake Mend cino, whlch has enab led us to reduce water releases to save every drop of water in that reset-voiT. We also joined the Sonoma-Mm·in Saving Water Partnership's new public outreach campaign. Bottom line; there's a drought on. Turn your water off." Water Agency Director Shirlee Zane added, "As our region's water resource managers it is essential that we take advantage of regulatory and funding opportunities provided by this declaration to help our region get through this drought. Implementing water conservation rebate programs and moving forward now on long-term water supply projects, such as aquifer storage and recovery or recycled water projects, will not only help our community today, but into the future." Water Agency Director Mike McGuire added, "Unless we have a fantastic February or miracle March, our region will face a drought unlike any other. Lake Mendocino and Lake Pillsbury are at historical lows and we need to double down on our conservation efforts. Thal means turning off unnecessary outdoor irrigation and keeping your daily water use behavior top of mind." Water Agency Director Su an Gorin stated This drought is happening now and requires immediate action by everyone in our community. Mandated or not a ll of us should be saving water however we can. Community members sho uld contact their local water utility to learn more about water conservation rebate programs." Other immediate actions the Water Agency has taken include: Improving reservoir management: On December 31, 2013, the State Water Resources Control Board issued an Order approving the Water Agency's petition for temporary urgency change to improve reservoir management of Lake Mendocino. This order will help preserve water in Lake Mendocino. View the Order online. Public outreach: The Water Agency along with the Sonoma-Marin Saving Water Partnership launched an unusual wintertime public awareness with the following message: The drought is on. Tum your water off. The goal of the effort is to increase public awarene s about the drought and provide conservation tips. The multimedia effort may be viewed on the Partnership's website at www.wateroff.org. Stakeholder outreach: The Water Agency continues to work proactively with key stakeholders in the upper Russian River watershed to efficiently manage water resources. The Water Agency is proactively speaking with agricultural groups, business coalitions and community based organizations to share drought and water conservation information. Weather forecasting: More than 50 percent of the Water Agency s annual water supply comes during extreme weather events known as atmospheric rivers. The Water Agency is working with the National Oceanic and Atmospheric Administration s Hydrometeorological Testb d Program to improve our ability to capture and manage water from atmospheric rivers. Long term projects: The Water Agency is implementing long term projects that will provide secure and reliable water supplies for the future including programs for the sustainable management of groundwater resources in the Alexander Valley, Santa Rosa Plain and Sonoma Valley as well as implementation of water reuse programs throughout our service area. Resources: The Water Agency has created a web page dedicated to drought news and information. Please visit www.sonomacountywater.org to view the page. 2 Future public outreach meetings: The Water Agency will begin planning to host a series of public outreach meetings to discuss the drought and its implications to our region. Meeting dates and times will be issued in a future press release, or visit the drought page often to learn more. ### The Sonoma County Water Agency is working to secure our future by investing in our water resources, community and environment. The Water Agency provides water supply, flood protection and sanitation services for portions of Sonoma and Marin counties. Visit us on the Web at www.sonomacountywater.org Thank you, Brad Sherwood Principal Program Specialist Community & Governmental Affairs Sonoma County Water Agency Phone: 707.547.1927 Mobile: 707-322-8192 Fax: 707.528.2080 404 Aviation Blvd. Santa Rosa, CA 95403 Working to secure our future by Investing in our water resources, environment and community 3 Subject: California drought: Jerry Brown declares emergency, asks public to ration water-S.F. Chronicle, 1/17/14 California drought: Jerry Brown declares emergency, asks public to ration water By Kurtis Alexander, S.F. Chronicle, 1/17/14 (01-17) 10:01 PST San Francisco--Gov. Jerry Brown on Friday officially declared a drought emergency in California, asking residents to voluntarily reduce their water use by 20 percent and committing to bolster the state's dwindling water supplies with better management and federal assistance. The order, announced at a news conference at the governor's San Francisco office, comes as the state is gripped by a third consecutive year of dry weather. Rivers are running low. Snowpack is meager. And communities across California are worried about having sufficient water for homes, businesses and farmland. The dry weather also has increased the threat of wildfire, with record acreage burning this month, including a 1,700-acre fire that continues to char the hills above Los Angeles. With the emergency deClaration, Brown said he would make it easier for communities to transfer water from wetter parts of the state to dryer areas. He also said he would seek federal assistance, though he didn't detail that effort. "We are in an unprecedented and very serious situation," Brown said. "It's important to awaken all Californians to the serious matter of drought and the lack of rain." While Brown said he wanted residents to join the conservation push and reduce their water consumption by 20 percent, the reductions remain voluntary. He said he would continue to monitor the weather and would consider mandatory restrictions if things don't improve. Friday's declaration is the third statewide drought declaration statewide since 1987, the previous coming between 2007 and 2009. An earlier declaration came during the 1976-77 drought, amid Brown's first stint as governor. This January, most of California has seen little or no rainfall. The dry spell follows a record-dry 2013 in much of the state and climate models suggest rain will remain scant during the next few months, setting up California for its third dry ' winter in a row. Meanwhile, the Sierra Nevada snowpack, vital to filling the state's sprawling system of reservoirs, measured just 17 percent of normal this week. Already, a ha~dful of water agencies have imposed restrictions on consumers while others-including some in the Bay Area -are ask1ng for voluntary water reductions. Sacramento is the biggest community to enact requirements so far ordering consumers Tuesday to scale back water use by 20 to 30 percent. ' Few areas are threatened as much as the Central Valley, where farmers dependent on state and federal water allocations face among their lowest allotments in years. The State Water Project estimated in November that it would fill only 5 percent of the water requests it has received from contracting agencies. Federal officials offered some support Thursday. The U.S. Department of Agriculture designated 27 of California's 58 counties-alongside po~ions of 10 other states-as natural disaster areas because ofthe drought, which means farmers can get emergency low-mterest loans. While projections released his week from the National Weather Service don't offer much hope of improving conditions forecasters note that two months remain of the wet season-plenty of time to make up for lost ground. ' MINUTES OF THE JOINT REGULAR MEETING OF THE CITY OF ROHNERT PARK City Council Rohnert Park Financing Authority Successor Agency to the Community Development Commission Tuesday, January 14, 2014 Rohnert Park City Hall, Council Chamber 130 Avram Avenue, Rohnert Park, California 1. CITY COUNCIL/RPFA/SUCCESSOR AGENCY TO THE CDC JOINT REGULAR MEETING - CALL TO ORDER/ROLL CALL Mayor Callinan called the joint regular meeting to order at 5 pm, the notice for which being legally noticed on January 9, 2014. Present: Joseph T. Callinan, Mayor Amy O. Ahanotu, Vice Mayor Gina Belforte, Council Member Jake Mackenzie, Council Member Pam Stafford, Council Member Absent: None. Staff present: City Manager Jenkins, Assistant City Attorney Barnhill, City Clerk Buergler, Director of Public Works and Community Services McArthur, Lieutenant Taylor, Senior Analyst Atkins, Interim Development Services Director Ponton, Interim Finance Director Walsh, Accounting Supervisor Kwong, Technical Services Division Manager Mazzanti, IT Supervisor Rowley, Deputy City Engineer Barnes, and Senior Engineering Technician Pedroncelli. 2. PLEDGE OF ALLEGIANCE Led by Liliana Barrientos, 5th Grade, Marguerite Hahn Elementary School Student. 3. PRESENTATIONS A. Mayor’s presentation of a Proclamation stating that Recognition and Honor be Conferred upon Reverend Doctor Samuel Tharpe for his service to this community. Mayor Callinan read and presented the proclamation to Reverend Doctor Samuel Tharpe. Item 6.A.1 City of Rohnert Park Joint Regular Meeting Minutes January 14, 2014 for City Council/Rohnert Park Financing Authority/Successor Agency Page 2 of 7 B. Mayor's presentation of a Proclamation stating that Recognition and Honor be Conferred upon Lance and Bryan Bosshard for their life saving efforts. Mayor Callinan read and presented the proclamation to Lance and Bryan Bosshard. 4. SSU STUDENT REPORT Libby Dippel, Sonoma State University Associated Students, Inc. (SSU ASI) Legislative Representative, announced Fiddler on the Roof showing from February 6-16, 2014; SSU is now offering a Hospitality & Tourism Certificate program; the Wine Business Institute is now located in the former University Commons building; a SSU camp for children with special needs is scheduled January 17-20, 2014; Weyden & Brewster opened in the Student Center; and a small satellite built by a team of SSU and Morehead State students was launched into space. 5. PUBLIC COMMENTS Nicole Roberts, representing her grandparents Tom and Helen Roberts who own and reside on property located within the Wilfred/Dowdell specific Plan, requested the City make an official change of address for the annexed property. Roberts spoke regarding the Wilfred Avenue improvement project and requested the southern side of Dowdell be tied into project drainage system like other properties located on Dowdell. Richard Klingbeil expressed concern regarding construction detours and dust on Santa Alicia and requested the City fix the issues. David Rowley, IT Supervisor, described the recent City Council Chamber sound system upgrades. 6. CONSENT CALENDAR A. Approval of Minutes for: 1. City Council Special Meeting December 17, 2013 2. City Council/RPFA/Successor Agency Joint Regular Meeting December 10, 2013 B. Acceptance of Reports for: 3. City Bills/Demands for payment dated January 14, 2014 4. Successor Agency to the CDC Bills/Demands for payment dated January 14, 2014 5. Housing Successor Agency- Cash Report for Month Ending November 2013 6. Successor Agency- Cash Report for Month Ending November 2013 7. City- Cash Report for Month Ending November 2013 8. RPFA- Cash Report for Month Ending November 2013 C. City Council Resolutions for Adoption: 1. 2014-001 Accepting the Development Impact Fee Report for Fiscal Year July 1, 2012 through June 30, 2013 2. 2014-002 Approving a Reorganization to Allocate City Engineer Position and Eliminate Economic Development Manager Position (PULLED by Belforte) City of Rohnert Park Joint Regular Meeting Minutes January 14, 2014 for City Council/Rohnert Park Financing Authority/Successor Agency Page 3 of 7 ACTION: Moved/seconded (Stafford/Mackenzie) to approve the Consent Calendar. Motion carried unanimously by the following 5-0 vote: AYES: Belforte, Mackenzie, Stafford, Ahanotu, and Callinan NOS: None, ABSTAINS: None, ABSENT: None. C. City Council Resolutions for Adoption: 2. 2014-002 Approving a Reorganization to Allocate City Engineer Position and Eliminate Economic Development Manager Position Recommended Action(s): adopt the resolution. ACTION: Moved/seconded (Belforte/Ahanotu) to approve Resolution 2014- 002. Motion carried unanimously by the following 5-0 vote: AYES: Belforte, Mackenzie, Stafford, Ahanotu, and Callinan NOS: None, ABSTAINS: None, ABSENT: None. 7. COUNTYWIDE SINGLE-USE PLASTIC BAG BAN ORDINANCE Director of Public Works and Community Services and Patrick Carter, Sonoma County Waste Management Agency, presented the item. Recommended Action(s): Direct the City’s representative to vote as follows: 1) Yes to certify the Final Environmental Impact Report, 2) Yes to approve the first reading and subsequent adoption of the Single-use Carry-out Plastic Bag Ban Ordinance and participate in the regional program, and 3) Yes to approve the first reading and subsequent adoption of the Administrative Citation Ordinance. Public Comment in Support of the item: Jim Salyers, Rohnert Park Disposal; Alan Friedman, and Jessica Jones representing Sierra Club Sonoma Group. ACTION: By Consensus City Council directed the City’s representative to vote yes and participate in the regional bag ban and have the Sonoma County Waste Management Authority to enforce the ordinance. 8. ROHNERT PARK GOLF PRESENTATION REGARDING THE FOOTGOLF PROGRAM AT FOXTAIL GOLF COURSE Director of Public Works and Community Services and Tom Bugbee, Vice President of Operations for CourseCo., presented the item. Recommended Action(s): Receive report and provide input. Council Member Mackenzie stepped away from the dais 6:13 pm and returned 6:15 pm Public Comment: Tom Isaak, President of CourseCo. ACTION: Report received. Council Member Stafford, Council Member Belforte, and Mayor Callinan supported a footgolf program and waiting until the results of the performance measurement report are considered. Council Member Mackenzie and Vice Mayor Ahanotu supported moving forward with a footgolf program. City of Rohnert Park Joint Regular Meeting Minutes January 14, 2014 for City Council/Rohnert Park Financing Authority/Successor Agency Page 4 of 7 9. FISCAL RECOVERY BRIEFING City Manager Jenkins, Consultant Cathy Standiford with Management Partners, presented the item. Recommended Action(s): Receive report and provide direction regarding the forecast and direct staff to proceed with developing a plan for long-term fiscal recovery and stability. Mayor Callinan stepped away from the dais 6:54 and returned 7:01 pm ACTION: By Consensus City Council report received and directed staff to proceed with developing a plan for consideration. 10. CITY OF ROHNERT PARK 2014 STRATEGIC PLAN UPDATE City Manager Jenkins and Lieutenant Taylor presented the item. Recommended Action(s): Receive review of Strategic Plan (Mission, Vision, Values, and Goals), 2013 Accomplishments, Best Practices, and Action Plan and provide direction on proposed update. ACTION: By Consensus City Council directed staff to move forward with updates and bring the item back for consideration and approval. 11. CONSIDERATION OF OPTIONS FOR THE FORMER CDC 2007R TAX ALLOCATION BONDS City Manager Jenkins and Director of Public Works and Community Services McArthur presented the item. Recommended Action(s): Direct staff to develop a capital project list for use of the former CDC tax allocation bonds. Council Member Belforte stepped away from dais 8:14 pm 8:15 pm ACTION: By Consensus City Council directed staff to move forward and bring back a project list for consideration. 12. DISPOSITION OF CERTAIN FORMER CDC LOW AND MODERATE INCOME HOUSING PROPERTIES City Manager Jenkins presented the item. Recommended Action(s): Direct staff to initiate the process to sell four properties held by the City of Rohnert Park (“City”) as housing successor to the Community Development Commission (“CDC”) to private parties at market value and use the proceeds to reduce outstanding bond debt obligations of the CDC Successor Agency. Staff will work with the City Attorney and bond counsel to ensure that any such property dispositions meet applicable requirements of State and Federal law. Public Comment: William Marcoux and John Hazard requested five houses not be turned over to the Sonoma County Community Development Commission Council Member Mackenzie stated for the record that in terms of the five houses the Staff Report is clear that those were not being considered at this meeting but will be considered before April. City of Rohnert Park Joint Regular Meeting Minutes January 14, 2014 for City Council/Rohnert Park Financing Authority/Successor Agency Page 5 of 7 ACTION: By Consensus City Council directed staff to move forward with the recommended actions. Staff will send notices to residents near the five houses when the item is considered. 13. OVERSIGHT BOARD TO THE CDC SUCCESSOR AGENCY REPLACEMENT APPOINTMENT City Manager Jenkins presented the item. Recommended Action(s): Acknowledge resignation of Darrin Jenkins from the Oversight Board (“OSB”) to the Community Development Commission Successor Agency and confirm the Mayor’s appointment of Brian Masterson to the OSB. ACTION: Moved/seconded (Callinan/Mackenzie) to appoint Brian Masterson to the OSB. Motion carried unanimously by the following 5-0 vote: AYES: Belforte, Mackenzie, Stafford, Ahanotu, and Callinan NOS: None, ABSTAINS: None, ABSENT: None. 14. CITY COUNCIL COMMITTEE & LIAISON ASSIGNMENTS FOR YEAR 2014 Mayor Callinan distributed a list of the City Council Committee and Liaison assignments for the year 2014. ACTION: By consensus, Council supported Mayor Callinan’s assignments as follows: Standing Committees Economic Development Callinan/Ahanotu Waste and Recycling Stafford/Ahanotu Water/Wastewater Issues (To Include Creek Master Plan Sub.) Mackenzie/Belforte Education (SSU & CRPUSD) Stafford/Callinan General Plan (To Include G.P. Update) Eliminated Ad-hoc Committees Development Agreement (formed 6/11/13 – 1 year duration) Stafford/Callinan Liaison Appointments to Other Committees Liaison Alternate Golf Course Oversight Committee Callinan Stafford Library Advisory Board Ahanotu Belforte Library JPA Review Advisory Committee Ahanotu Redwood Empire Municipal Insurance Fund [REMIF] Board Jenkins Callinan Senior Citizens Advisory Commission Stafford Callinan Sonoma County Transportation Authority/ Regional Climate Mackenzie Callinan Protection Authority Sonoma County Waste Management Agency McArthur Vacant Water Advisory Committee Callinan Mackenzie Russian River Watershed Association Stafford Ahanotu Subregional/Wastewater System Policy Committee Eliminated City of Rohnert Park Joint Regular Meeting Minutes January 14, 2014 for City Council/Rohnert Park Financing Authority/Successor Agency Page 6 of 7 Other Appointments/Assignments Liaison Alternate Association of Bay Area Governments [ABAG] General Assembly Mackenzie Ahanotu Chamber of Commerce Stafford Ahanotu Health Action Council Belforte Ahanotu Mayors & Councilmembers Legislative Committee Callinan/Ahanotu Rohnert Park Foundation Officers Callinan/Ahanotu Sonoma County/City Solid Waste Advisory Group [SWAG] Eliminated City Manager Jenkins reported the Rohnert Park Foundation has receiv ed notice the 501(c) designation is confirmed. The bylaws can be amended to allow Rohnert Park Council Members to be the Rohnert Park Foundation Board. Staff will draft the bylaws amendment and bring forward to City Council for concurrence and then to the Foundation Board to approve. ACTION: By Consensus, Council supported staff moving forward with amending the Foundation Bylaws. 15. STANDING COMMITTEE / LIAISON REPORTS A. Standing Committee Reports B. Liaison Reports 1. Russian River Watershed Association, 12/12 (Mackenzie) Council Member Mackenzie reported Virginia Porter will retire and Andy Rodgers will become the Executive Director after June 30, 2014. Student Video Contest is scheduled for 2014. Sebastopol has joined the Association and Mendocino County has rejoined. 2. SCTA/RCPA, 1/13 (Mackenzie) Council Member Mackenzie reported on the adoption of the 2014 Highway 101 Corridor Landscaping & Tree Planting Plan and how it might pertain to Rohnert Park; State of the County presentation on county roads, and the FY 12/13 SCTA/RCPA Annual Report. 3. Golf Course Oversight Committee, 1/7 (Stafford) Council Member Stafford reported on the development of a pedestrian safety plan for the Municipal Golf Course which is being forwarded to the Parks & Recreation Commission for consideration, and then will come to the City Council for consideration. The Committee received a report on the status of the golf course operations. 4. Health Action Network, 1/9 (Belforte) Council Member Belforte reported on Health Action’s use of community transformation grants to provide training for local city staff on how to incorporate development plans that have healthy aspects into general plans. C. Other Reports Council Member Stafford reported on the Chamber of Commerce crab feed and the Rohnert Park Public Safety Officers Association crab feed events. City of Rohnert Park Joint Regular Meeting Minutes January 14, 2014 for City Council/Rohnert Park Financing Authority/Successor Agency Page 7 of 7 Council Member Belforte reported the railroad ties near Walmart have been covered. Vice Mayor Ahanotu reported the Education Foundation is celebrating 30 years and will hold an event January 15, 2014 at Sally Tomatoes. 16. COMMUNICATIONS A. Thank you for continued support of the annual Community Thanksgiving Dinner from Reverend Samuel Tharpe. 17. MATTERS FROM/FOR COUNCIL 18. PUBLIC COMMENTS 19. ADJOURNMENT Mayor Stafford adjourned the joint regular meeting at 9:10 pm. _____________________________________ __________________________________ JoAnne Buergler, City Clerk Joseph T. Callinan, Mayor City of Rohnert Park City of Rohnert Park Rohnert Park Public Safety FIRE DIVISION 2013 Annual Report Fire Suppression 1- Fire Lieutenant 1- Fire Marshal 3- Sergeant Fire Captains 6- PSO Driver Operators/Engineers 6- PSO Firefighters (3- Vacant) 1- Secretary Total assigned personnel: 18 Fire Prevention: Annual Business Fire Inspections 1208 New & Permit Construction Inspections 414 Public Education Events 182 FIRE DIVISION REVENUE 2011-12 Budgeted $200,000 Actual $254,743 2012-13 Budgeted $200,000 Mid-Year $184,863 Annual Fire Inspection and Permit Fees Range from $40.00 to $1,016.00 Incidents by Hour of the Day Alarm Hour Incident Types (As Defined by NFPA): Fire Hazard Service Call Good Intent Call False Alarm Call Special Incident $1,203,523 $270,416 $1,332,452 $197,157 $643,395 SIGNIFICANT FIRE INCIDENTS IN 2013 NOTABLE EVENTS IN 2013 ANNUAL REPORT FISCAL YEAR 2012-2013 Alcoholic Beverage Sales Ordinance Prioritization of Problems Regarding Enforcement of… Performance Standards Conditions And Regulations Problems: Succession Planning Better Compliance with RBS Mandate Alcohol Sales to Minors Methods of Mitigating Problems Problem Succession Planning Solution Developed 16 Hour Train the Trainer Course Four officers successfully completed the program Co-Lead Trainings with New Instructors Methods of Mitigating Problems Problem Better Compliance with RBS Mandate Solution Different Approach Developed an informative brochure. Newly formatted letter sent to merchants. Expressed concern for better business practices to avoid costly penalties. Resulted in increased enrollment. Methods of Mitigating Problems Problem Alcohol Sales to Minors Solution Through RBS Training and Minor Decoy Operations Sales/ furnishing cases reduced to 10%. ANNUAL FEES: COLLECTED $32,402.28 DELINQUENT $ .0 TOTAL $32,402.28 EXPENDITURES: COMPLIANCE CHECKS RBS TRAINING ADMINISTRATIVE COST $24,496.80 EQUIPMENT & MATERIALS $ 1,451.94 TOTAL = $25,948.74 RESERVE BALANCE $ 6,453.54 Allocation of Fees 2013 City Council Agenda ITEM NO. 6.B.9 City of Rohnert Park Council Members Quarterly Travel Expense 2nd Quarter Oct. 2013 ‐ Dec. 2013 Note: Expenses are reported when paid not attended Account Event Description Check Date Amount Travel & Meetings‐Legislative 6601 City Representation 6602 Sonoma County Economic; P Stafford 11/6/2013 70.00          Noon Times Luncheon; P Stafford 11/20/2013 25.00          95.00          Stafford 6606 ‐              ‐              Mackenzie 6611 Sonoma County Economic 11/6/2013 70.00          Economic Development 12/11/2013 70.00          140.00        Belforte 6612 Sonoma County Economic 11/6/2013 70.00          ‐              70.00          Callinan 6613 Noon Times Luncheon 11/20/2013 25.00          ‐              25.00          Ahanotu 6614 ‐              ITEM NO. 6.C.1 1 Meeting Date: January 28, 2014 Department: Development Services Submitted By: Richard F. Pedroncelli, PLS, Senior Engineering Technician Prepared By: Richard F. Pedroncelli, PLS, Senior Engineering Technician Agenda Title: Authorize and approve Amendment 1 to Task Order No. 2013-01 with Green Valley Consulting Engineers for Inspection and Material Testing of the Labath/Business Park Overlay and Traffic Signal Installation RECOMMENDED ACTION: Adopt resolution authorizing and approving Amendment 1 to Task Order No. 2013-01 with Green Valley Consulting Engineers. BACKGROUND: The Joint Exercise of Powers Agreement for the Implementation of Mitigation Measures for Widening Wilfred Avenue (JEPA Wilfred) required the Tribe to construct the Labath/Business Park Overlay and Traffic Signal Installation. The City of Rohnert Park hired Green Valley Consulting Engineers (Green Valley) to provide inspection and materials testing services for the Labath/Business Park Overlay and Traffic Signal Installation, pursuant to City Council Resolution No. 2013-097, adopted on June 25, 2013. Green Valley provided a scope of work and estimated the cost to provide the services, not to exceed $142,590.00. Green Valley represented city staff throughout the progress of the construction. Some work occurred at night and multiple shifts were necessary in order to maintain inspection and testing of the work. ANALYSIS: Consultant work is paid on a time and materials basis. The work was performed under a private contract, therefore the construction schedule was not under city control. Because some of the work was performed at night and throughout multiple shifts the cost exceeded Green Valley’s estimate. The amendment amounts to $20,605.00. The final cost of Green Valley services amounts to $163,195.00. OPTIONS CONSIDERED: Staff recommends approving Amendment 1 to Task Order No. 2013-01 with Green Valley Consulting Engineers. FISCAL IMPACT/FUNDING SOURCE: The Green Valley Consulting Engineers additional $20,605.00 costs are billable to and paid by the Federated Indians of Graton Rancheria pursuant to the JEPA Wilfred. Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 6.C.1 2 Department Head Approval Date: 01/02/2014 City Manager Approval Date: 12/26/2013 City Attorney Approval Date: 12/31/2013 Attachments (list in packet assembly order): 1. Resolution w/amendment RESOLUTION NO. 2014-003 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING AND APPROVING AMENDMENT 1 TO TASK ORDER NO. 2013-01 WITH GREEN VALLEY CONSULTING ENGINEERS FOR INSPECTION AND MATERIAL TESTING OF THE LABATH/BUSINESS PARK OVERLAY AND TRAFFIC SIGNAL INSTALLATION WHEREAS, the City of Rohnert Park approved Task Order No. 2013-01with Green Valley Consulting Engineers (Green Valley) for inspection and materials testing services for the Labath/Business Park Overlay and Traffic Signal Installation, pursuant to City Council Resolution No. 2013-097, adopted on June 25, 2013, and; WHEREAS, the estimated cost for Green Valley services contained in Task Order No. 2013-01 was $142,590.00, and; WHEREAS, Green Valley requests Amendment 1 to Task Order No. 2013-01 in the amount of an additional $20,605.00, and; WHEREAS, the final cost for Green Valley services for inspection and materials testing of the Labath/Business Park Overlay and Traffic Signal Installation $163,195.00 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby authorize and approve Amendment 1 to Task Order No. 2013-01 by and between Green Valley Consulting Engineers and the City of Rohnert Park, for $20,605.00. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to take all actions to effectuate this amendment for and on behalf of the City of Rohnert Park, including execution, if necessary, in substantially similar form to the amendment attached hereto as Exhibit “A,” subject to minor modifications by the City Manager or City Attorney. DULY AND REGULARLY ADOPTED this 28th day of January, 2014. CITY OF ROHNERT PARK ____________________________________ Joseph T. Callinan, Mayor ATTEST: _____________________________ JoAnne Buergler, City Clerk Attachment: Exhibit A AMENDMENT 1 TO TASK ORDER NO. 2013-01 CITY OF ROHNERT PARK AND GREEN VALLEY CONSULTING ENGINEERS AUTHORIZATION OF ADDITIONAL ENGINEERING SERVICES TO PROVIDE INSPECTION AND MATERIAL TESTING OF THE LABATH/BUSINESS PARK OVERLAY AND TRAFFIC SIGNAL INSTALLATION SECTION 1 – PURPOSE The purpose of this Task Order is to authorize and direct GREEN VALLEY CONSULTING ENGINEERS to proceed with the work specified in Section 2 below in accordance with the provisions of the MASTER AGREEMENT between the City of Rohnert Park ("City") and GREEN VALLEY CONSULTING ENGINEERS ("Consultant") dated January 26, 2011. SECTION 2 – SCOPE OF WORK The additional items authorized by this Task Order are presented in Exhibit “A”. SECTION 3 – COMPENSATION AND PAYMENT Compensation shall be as provided in the MASTER AGREEMENT between the parties hereto referenced in SECTION 1 above. The additional cost for the additional services as set forth in SECTION 2 shall be actual costs (time and materials) based on Consultants' standard labor charges in accordance with the provisions of the MASTER AGREEMENT and as shown in Exhibit “B” for an amount not-to-exceed $20,605.00. Total compensation under this Task Order with this Amendment shall not exceed $163,195.00 SECTION 4 – TIME OF PERFORMANCE The work described in SECTION 2 shall be completed during Fiscal Year 2013/14 or as extended by the City Engineer or his designee. SECTION 5 – ITEMS AND CONDITIONS All items and conditions contained in the MASTER AGREEMENT for professional services between City and Consultant are incorporated by reference. Approved this 28 th day of January, 2014. CITY OF ROHNERT PARK GREEN VALLEY _____________________________ ___________________________________ Darrin Jenkins, City Manager Elizabeth L. Ellis, President Per Resolution No. _________ adopted by the Rohnert Park City Council at its meeting of January 28, 2014. Attest: _____________________________ City Clerk November 29, 2013 Patrick Barnes City of Rohnert Park 130 Avram Ave Rohnert Park, CA 94928 Re: Request for Amendment #1 for the Labath Roadway Inspection Services Dear Pat: I am writing in regards to our contract for Construction Management and Inspection services associated with the Labath Roadway Inspection project, as referenced. We respectively request an amendment to our original Contract to address the additional working days that had been granted to the Contractor. Our original contract amount was depleted at the expiration of the original contract working days. This amendment will address the additional costs resulting from additional work as detailed below. We are estimating an additional 10-15 working days of part-time required to close out the project. Below is a brief summary of the additional services provided during the construction phase: ¾The Contractor worked multiple crews for extended hours resulting in a significant amount of overtime not previously accounted for in the budget. ¾The Contractor worked multiple crews on both day and night shifts requiring 2 inspectors for a period of 2-3 weeks. ¾Additional work was added on Redwood Drive and J. Rogers Lane which was not accounted for in the original scope. ¾There were major errors with the electrical plans, which resulted in an additional 3-4 weeks of work for the Contractor to obtain power for the new signals. ¾The final electrical, landscaping, punch list, etc. work slowed to a crawl resulting in 6-8 weeks of part time work. Estimated Fee Estimated fee for additional services is $20,605 per the attached spreadsheet of hours and associated fees. If you have any questions regarding the scope of work required for this project or estimated fee, please feel free to contact Tim Dillenburg or myself at 707.579.0388. Sincerely, Exhibit "A" Liz Ellis, P.E. Principal M:\Consultants\Green Valley\Labath Task Order 2013-01\Amend 1 for Labath Inspection\Copy of Amd #1 - Labath Roadway Improvements12/18/2013CITY OF ROHNERT PARKDEVELOPMENT SERVICESTask Information Task Task InformationProject Manager/PEConstruction InspectorConstruction Inspector Night/OTAdmin. AssistantSurvey Crew Surveyor Direct Costs Total Hours Total Costs$135$115 $150 $70 $190 $1051 Amendment #115 120 20 4 159 $16,105Vehicle Costs $50/day$1,500 $1,500Total Hours15 120 20 4 0 0$2,025 $13,800 $3,000 $280 $0 $0 $1,500Based on 60 working daysBased on full-time inspection, Monday through Friday at 8 hours per day at State Prevailing WagesBased on part time Construction Management Estimated at 3 hours per day** copiesWORK ESTIMATEBilling ClassificationProject Total$20,605.00LABATH ROADWAY IMPROVEMENTS PROJECT - Amendment #1Exhibit "B" ITEM NO. 6.C.2 1 Meeting Date: January 28, 2014 Department: Development Services Submitted By: Patrick Barnes, Deputy City Engineer Agenda Title: Authorize and Approve a Design Professional Services Agreement with Coastland Civil Engineering for Engineering Design Services for Rohnert Park Expressway Overlay Project No. 2013-01 RECOMMENDED ACTION: Authorize and Approve a Design Professional Services Agreement with Coastland Civil Engineering for Engineering Design Services for Rohnert Park Expressway Overlay Project No. 2013-01 in the amount of $119,389. BACKGROUND: The Rohnert Park Expressway Overlay Project (Project) involves overlaying the street surface of the segment of Rohnert Park Expressway between Snyder Lane and State Farm Drive. The Project is, in part, federally funded and therefore subject to requirements for Federal funding. The grant the City has received for Federal funding for this project was the result of the roadway’s proximity to the Central Rohnert Park Planned Development Area (PDA). In keeping with staff’s June 2012 presentation to Council regarding roadway maintenance strategy, these Federal funds are being used to maintain major roadways (arterials and collectors) in the City. The Rohnert Park Expressway is a major arterial and the most heavily travelled roadway in the City. It connects the freeway to the PDA, the Rohnert Park Community Center, Sonoma State University (SSU) and the Green Music Center. The Graton Casino also advertises to patrons that Rohnert Park Expressway is one of the preferred routes to access the casino. The roadway will support the Central PDA including the development of the State Farm properties. The current Pavement Condition Index (PCI) ratings of streets segments on Rohnert Park Expressway range from 48 (poor) to 85 (very good). Maintaining this vital and very visible link to the City’s major economic centers is crucial and performing maintenance now will avoid greater costs for rehabilitation in the future. The construction is expected to cost $2.0 million. Soft costs will total another $350K. Funding will be a mixture of federal grant and local funds. No General Fund monies will be used for this project. The design consultant will be responsible for the design of the Project. This includes preparing construction drawings, bid specifications, and construction cost estimates for the Project. Staff will perform design review and coordinate with Caltrans for the environmental and grant funding requirements. The design consultant will be responsible for a design that balances: Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 6.C.2 2 1. The available funding. 2. The desire to cover as much of the project area as possible. 3. The City’s requirements to construct the roadway for a 20- year life. The overall schedule for the Project is dictated by the grant. Design will begin as soon as the design contract is awarded and all final documents for construction must be submitted to Caltrans for approval October 1, 2014. The construction is planned for the summer of 2015. On November 6, 2013, Development Services issued a Request for Proposals (“RFP”) for the purpose of identifying qualified consultants to assist the City with the design of the Project. Three proposals were received by the due date of December 3, 2013. The City project team reviewed the proposals and scored them on responsiveness to the RFP. Based on the review, staff selected Coastland Civil Engineering for the design services based on based on demonstrated competence and professional qualifications. Their proposal price is $119,389, which staff believes is reasonable for the services to be provided. OPTIONS CONSIDERED: Staff considered two other firms for this design and based on the project team, previous experience and project scope believe Coastland Civil Engineering to be the most qualified for this project. Staff also considered how much of this project to do in house. Based on our work with Caltrans over the past few years we believed it best for staff to work directly with Caltrans on the grant and environmental documents. Staff considered doing the design in-house, but given current commitments, believes it is best to have this work done by a consultant. Note that even should this work be done in house, some consultant work would be needed for geotechnical testing and related work. FISCAL IMPACT/FUNDING SOURCE: The design costs will be paid from Gas tax. This approach maximizes the amount of federal grant available for construction and minimizes overhead expenses during design. No General Fund monies will be expended on this project. Department Head Approval Date: 1/13/2014 City Manager Approval Date: 1/17/2014 City Attorney Approval Date: 1/16/2014 Attachments (list in packet assembly order): 1. Resolution 2. Draft contract RESOLUTION NO. 2014-004 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING AND APPROVING A DESIGN PROFESSIONAL SERVICES AGREEMENT FOR THE ROHNERT PARK EXPRESSWAY OVERLAY PROJECT NO. 2013-01 WITH COASTLAND CIVIL ENGINEERING, INC. FOR DESIGN ENGINEERING SERVICES WHEREAS, on November 6, 2013, staff issued a Request For Proposals (“RFP”) for the Rohnert Park Expressway Overlay Project No. 2013-01 (“Project”) to identify a qualified consultant that can assist the City with the design of the Project; WHEREAS, the City of Rohnert Park Municipal Code Title 3 Chapter 3.04 provides that the city's purchasing functions shall be governed by the city's purchasing policy; and WHEREAS, consistent with City of Rohnert Park Purchasing Policy Section 3.6.6(D), the City prepared a Request For Proposals and received three proposals on December 3, 2013; and WHEREAS, the City project team chose Coastland Civil Engineering, Inc. for an award of contract due to their (1) quality of team and ability to staff the Project, (2) experience and expertise in this particular type of work, and (3) understanding of the Project as demonstrated in the selection process. NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Rohnert Park authorizes and approves a design professional services agreement by and between Coastland Civil Engineering, Inc., a California corporation, and the City of Rohnert Park, a municipal corporation, for design related services for the Rohnert Park Expressway Overlay Project No. 2013-01, for a not-to-exceed cost of $119,389. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute this agreement for and on behalf of the City of Rohnert Park in substantially similar form as shown in Exhibit A, subject to minor modification by the City Manager or City Attorney. DULY AND REGULARLY ADOPTED this 28th day of January, 2014. CITY OF ROHNERT PARK ____________________________________ Joseph T. Callinan, Mayor ATTEST: _____________________________ JoAnne Buergler, City Clerk Attachment – Exhibit A ITEM NO. 6.C.3 1 Meeting Date: January 28th, 2014 Department: Finance Submitted By: Mark Walsh, Interim Finance Director Prepared By: Ana Kwong, Accounting Supervisor Agenda Title: Resolution Repealing, Replacing and Authorizing the Examination of Sales or Transactions and Use Tax Records RECOMMENDED ACTION: Approve and adopt resolution authorizing the designation of City officials and MuniServices LLC to examine confidential transactions (sales) and use tax records of the State Board of Equalization (BOE) in accordance with the California Revenue and Taxation Code, Section 7056. BACKGROUND: Resolution No. 89-24 and Resolution No. 69-62 were adopted by the Council in accordance with Section 7056 of the California Revenue and Taxation Code. These resolutions authorized City Officials and the City’s revenue consultant to examine confidential State sales and use tax records. With the adoption of Ordinance No. 821 (Transactions and Use Tax Ordinance) by passage of Measure E in June 2010, the Board of Equalization (BOE) requested a resolution that designated examination of sales or transactions and use tax records. Resolution 2010-117 complied with that request by designated City officials (City Manager, Finance Director, Accounting Supervisor) and the City’s revenue consultant (MuniServices LLC). With the adoption of Ordinance No. 875 (continuation of Ordinance 821) by passage of Measure A in November 2013, the BOE requested an update of who is authorized to examine sales and use tax records. ANALYSIS: Pursuant to the Ordinance No. 821 and Resolution No. 2010-73, the City entered into a contract with the BOE (in accordance with Section 7270 of the Revenue and Taxation Code) to perform all functions incident to the administration and operation of the Transactions and Use Tax Ordinance. Pursuant to Section 7056 of the Revenue and Taxation Code of the State of California, requirements and conditions for the disclosure of BOE records are set and criminal penalties are established for the unlawful disclosure of information contained in or derived from the transactions (sales) and use tax records of the BOE. Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 6.C.3 2 By resolution, Council previously authorized access to confidential transactions (sales) and use tax information of the BOE by designated City officials (City Manager, Finance Director, Accounting Supervisor) and the City’s revenue consultant (MuniServices LLC). These designations have met the City’s needs and staff recommends that the same officials and consultant be designated with respect to Measure A. OPTIONS CONSIDERED: City officials (City Manager, Finance Director, Accounting Supervisor) and revenue consultant would not have access to the City’s sales tax information. FISCAL IMPACT/FUNDING SOURCE: none Department Head Approval Date: 1/2/14 City Manager Approval Date: 1/13/14 City Attorney Approval Date: 1/10/14 Attachments (list in packet assembly order): 1. Resolution RESOLUTION NO. 2014-005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK REPEALING AND REPLACING RESOLUTION 2010-117 AND AUTHORIZING CITY OFFICIALS AND REPRESENTITIVES TO PERFORM EXAMINATION OF SALES OR TRANSACTIONS AND USE TAX RECORDS WHEREAS, pursuant to Ordinance No. 821 the City of Rohnert Park entered into a contract with the State Board of Equalization to perform all functions incident to the administration and collection of local sales and use taxes; and WHEREAS, pursuant to Resolution 2010-73 the City of Rohnert Park entered into a contract with the State Board of Equalization to perform all functions incident to the administration and collection of local transactions and use taxes; and WHEREAS, pursuant to Ordinance No. 875 (continuation of Ordinance 821) by the passage of Measure A in November 2013, the State Board of Equalization requested an update of authorized City officials and revenue consultant to examine of sales or transactions and use tax records; and WHEREAS, the City Council of the City of Rohnert Park deems it necessary for authorized representative of the City to examine confidential sales and transactions and use tax records of the Board pertaining to sales and transactions and use taxes collected by the Board for the City; and WHEREAS, Section 7056 of the California Revenue and Taxation Code sets forth certain requirements and conditions for the disclosure of Board records and establishes criminal penalties for the unlawful disclosure of information contained in, or derived from sales or transactions and use tax records of the Board; and WHEREAS, Section 7056 of the California Revenue and Taxation Code requires that any person designated by the City shall have an existing contract to examine the City’s sales and transactions and use tax records. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AS FOLLOWS: Section 1. That the Finance Director, the City Manager and the Accounting Supervisor or other officer or employee of the City designated in writing by the Finance Director to the State Board of Equalization (hereafter referred to as Board) is hereby appointed to represent the City with authority to examine all of the sales or transactions and use tax records of the Board pertaining to sales or transactions and use taxes collected for the City by the Board of Equalization pursuant to the contract between the City and the Board under the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law. The information obtained by examination 2014- of Board records shall be used only for purposes related to the collection of City sales or transactions and use taxes by the Board pursuant to the contract. Section 2. That the Finance Director, the City Manager and the Accounting Supervisor or other officer or employee of the City designated in writing by the Finance Director to the Board is hereby appointed to represent the City with authority to examine those sales and transactions and use tax records of the Board for purposes related to the following governmental functions of the City: a) Financial planning functions; b) Economic development functions; c) Business Tax compliance functions. Section 3. The City’s contract with MuniServices LLC (“Consultant”) provides for the terms and conditions upon which Consultant can examine the transactions and use tax records pertaining to transactions and use taxes collected for the City Section 4. Consultant is hereby designated to represent the City with authority to examine all of the sales and transactions and use tax records of the Board pertaining to sales and transactions and use taxes collected for the City by the Board. The Consultant by this section meets all of the following conditions: a) has an existing contract with the City to examine sales and transactions and use tax records; b) is required by that contract to disclose information contained in, or derived from those sales and transactions and use tax records only to the officer or employee authorized under Section 1 (or Section 2) of this resolution to examine the information; c) is prohibited by that contract from performing consulting services for a retailer during the term of that contract; d) is prohibited by that contract from retaining the information contained in, or derived from those sales and transactions and use tax records after that contract has expired. The information obtained by examination of Board records shall be used only for purposes related to the collection of City’s sales and transactions and use taxes by the Board pursuant to the contracts between the City and the Board. Section 5. Resolution No. 2010-117 is hereby repealed. Section 6. The City Clerk of the City is hereby directed to certify adoption of this Resolution and send a copy to the Board. 2014- DULY AND REGULARLY ADOPTED this 28th day of January, 2014. CITY OF ROHNERT PARK ____________________________________ Joseph T. Callinan, Mayor ATTEST: _____________________________ JoAnne Buergler, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SONOMA ) CITY OF ROHNERT PARK) I, JOANNE BUERGLER, City Clerk of the City of Rohnert Park, hereby certify that Resolution No. _______is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Rohnert Park on ______________ by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________ JoAnne Buergler, City Clerk City of Rohnert Park, California ITEM NO. 6.C.4 1 Meeting Date: January 28, 2014 Department: Development Services Submitted By: Richard F. Pedroncelli, PLS, Senior Engineering Technician Prepared By: Richard F. Pedroncelli, PLS, Senior Engineering Technician Agenda Title: Approving and Accepting a 1997 Grant Deed from The Rohnert Park District to the City of Rohnert Park for Sewer Pond/Animal Shelter Properties, APN 143-040-002-097 & 098) RECOMMENDED ACTION: Adopt resolution approving and accepting 1997 Grant Deed from The Rohnert Park District to the City of Rohnert Park for Sewer Pump Station/Animal Shelter Properties. BACKGROUND: The Rohnert Park District was created prior to the City of Rohnert Park incorporation for the purpose of providing community facilities. The City Council of the City of Rohnert Park is also the Board of Directors of the Rohnert Park District, with the Mayor appointed the Chairperson, the City Manager appointed the Executive Director and the City Clerk appointed the Secretary. The Rohnert Park District authorized execution of a Grant Deed transferring title of certain property to the City of Rohnert Park by adopting Board Resolution No. 97-01 on June 24, 1997. The property is located at 301 J. Rogers Lane and is commonly referred to as the Animal Shelter property. Despite the execution of the Grant Deed, the Sonoma County Assessor’s Office (Assessor) continues to show the Animal Shelter property (APN 143- 040-097) as owned by the Rohnert Park District. The Assessor is requesting a Certificate of Acceptance be executed by the City of Rohnert Park in order to change the owner as the City of Rohnert Park. Staff has researched city records and has not discovered a Certificate of Acceptance issued for this transaction by the City of Rohnert Park. Rohnert Park’s City Council members are appointed as the Board of Directors of The Rohnert Park District. Since The Rohnert Park District, Board of Directors approved the conveyance of the property to the City of Rohnert Park the intent to transfer the property is clear. The Grant Deed recorded as document number 19970054392 of Official Records of Sonoma County on June 26, 1997, and is attached to the resolution for the City Council’s reference. The City of Rohnert Park approved a Lot Line Adjustment between the Sewer Pump Station and Animal Shelter properties by City Council Resolution No. 2013-032 adopted on February 26, 2013. ANALYSIS: Deeds conveying an interest in real property require a certificate or resolution of acceptance by the City Council to be recorded, as required by Government Code 27281. The Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 6.C.4 2 record clearly shows the Rohnert Park District’s intention to convey the property to the City of Rohnert Park, therefore the Certificate of Acceptance is the final step to transfer the property. The Sonoma County Assessor’s Office request is to simply complete the Grant Deed transaction by issuing a Certificate of Acceptance. OPTIONS CONSIDERED: The preferable option is to adopt this resolution. Not adopting the resolution would be cause for continuing confusion by outside agencies related to the property ownership. FISCAL IMPACT/FUNDING SOURCE: No impact to the General Fund Department Head Approval Date: 1/9/2014 City Manager Approval Date: 1/9/2014 City Attorney Approval Date: 1/9/2014 Attachments (list in packet assembly order): 1. Resolution w/1997 Grant Deed 2. Certificate of Acceptance 3. Lot Line Adjustment Grant Deed 4. Map of Animal Shelter Property RESOLUTION NO. 2014-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK APPROVING AND ACCEPTING 1997 GRANT DEED FROM THE ROHNERT PARK DISTRICT TO CITY OF ROHNERT PARK FOR SEWER PUMP STATION AND ANIMAL SHELTER PROPERTY (APN143-040-002-097 & 098) WHEREAS, The Rohnert Park District executed a Grant Deed conveying title of certain property to the City of Rohnert Park by adopting Board Resolution No. 97-01 on June 24, 1997, and; WHEREAS, the Sonoma County Assessor’s Office continues to show the property as owned by The Rohnert Park District because of a lack of a Certificate of Acceptance accompanying the Grant Deed, and; WHEREAS, the City desires to clear the confusion with the Sonoma County Assessor’s Office relating to property ownership. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that it does hereby authorize and approve accepting the real property as described in that certain Grant Deed recorded as Document Number 1997054392 Official Records of Sonoma County on June 26, 1997. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute all documents pertaining to same for and on behalf of the City of Rohnert Park. DULY AND REGULARLY ADOPTED this 28th day of January, 2014. CITY OF ROHNERT PARK ____________________________________ Joseph T. Callinan, Mayor ATTEST: ______________________________ JoAnne M. Buergler, City Clerk Attachment: 1997 Grant Deed CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Grant Deed (“Deed”) dated June 24, 1997, from Rohnert Park District, a community service district (“Grantor”) to the City of Rohnert Park, a municipal corporation (“City”) is hereby accepted by the undersigned on behalf of the City pursuant to authority conferred by Resolution No. 2014-____, adopted by the City on January 28, 2014, and that the City consents to recordation of the Deed by its duly authorized officer. Dated ____________, 2014 By:_________________________ Name: Darrin Jenkins Title: City Manager Animal Shelter Property This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. 2,234 0.1 THIS MAP IS NOT TO BE USED FOR NAVIGATION 1: Miles0.04 Notes Map showing Animal Shelter Property Legend 0.070 Counties Urban Growth Boundary City Boundary Rail Road Lake Creek Park Landmarks Parcels ITEM NO. 1 Meeting Date: January 28, 2014 Department: Administration Submitted By: Darrin Jenkins, City Manager Agenda Title: Consideration of Authorizing and Approving an Employment Agreement between the City of Rohnert Park and Victoria Perrault for Human Resources Director Services RECOMMENDED ACTION: Approve a resolution authorizing and approving an employment agreement between the City Of Rohnert Park and Victoria Perrault for Human Resources Director services. BACKGROUND: The City has been without human resources management leadership for approximately ten years. Since 2010, the City has contracted with Regional Government Services for a part-time Human Resources Manager. During this time, the consultant in this role has identified a significant number of substantial and ongoing human resource management needs, and recommended that the City allocate a full-time management position to address them. In the FY 13/14 budget process, the City Council funded and allocated this critical position. ANALYSIS: The City Manager has selected Victoria Perrault from a pool of qualified candidates recently generated in a competitive recruitment process for the position of Human Resources Director. Consistent with City policy, the appointment will be “at-will” and subject to an employment agreement. Under an at-will employment agreement, the City retains the ability to terminate the employment relationship with or without cause. In the event the employee is terminated from employment without cause, the City will provide the employee with a minimal severance benefit. If the employee is terminated for cause, the City is not obligated to pay any severance benefit. The proposed agreement is for a term of three years, which allow time to develop administrative infrastructure and accomplish needed changes within the City organization. FISCAL IMPACT: The position has already been allocated in the FY 13/14 budget and placed at salary range 98M ($9,007 per month to $10,948 per month). Department Head Approval Date: N/A City Manager Approval Date: N/A City Attorney Approval Date: N/A Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 2 Attachments(list in packet assembly order): 1. Resolution of the City of Rohnert Park Authorizing And Approving An Employment Agreement Between The City Of Rohnert Park And Victoria Perrault For Human Resources Director Services RESOLUTION NO. 2014-007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROHNERT PARK AUTHORIZING AND APPROVING AN EMPLOYMENT AGREEMENT BETWEEN THE CITY OF ROHNERT PARK AND VICTORIA PERRAULT FOR HUMAN RESOURCES DIRECTOR SERVICES WHEREAS, the City Council wishes to enter into an Employment Agreement with Victoria Perrault to perform the duties of Human Resources Director in consideration of and subject to the terms, conditions, and benefits set forth in the Employment Agreement; WHEREAS, the City Manager, as the appointing authority, has determined that Victoria Perrault possesses the skills and expertise necessary to perform these services; WHEREAS, Victoria Perrault desires to serve as Human Resources Director of the City of Rohnert Park in consideration of and subject to the terms, conditions, and benefits set forth in the Employment Agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rohnert Park that the City Council authorizes and approves the Employment Agreement between the City of Rohnert Park and Victoria Perrault for Human Resources Director services attached hereto as Exhibit "A." BE IT FURTHER RESOLVED that the City Manager is authorized and directed to execute same for and on behalf of the City of Rohnert Park. DULY AND REGULARLY ADOPTED by the City Council of the City of Rohnert Park this 28th day of January, 2014. CITY OF ROHNERT PARK _________________________ Mayor ATTEST: ____________________________________ City Clerk Page 1 of 6 EMPLOYMENT AGREEMENT Between CITY OF ROHNERT PARK AND VICTORIA PERRAULT THIS AGREEMENT between the CITY OF ROHNERT PARK (“City”) and Victoria Perrault (“Employee”) is dated for reference purposes this 29th day of January, 2014, and is deemed effective as of that date. RECITALS WHEREAS, City desires to retain the services of Employee to serve as the Human Resources Director in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement; WHEREAS, Employee desires to serve as Human Resources Director of the City of Rohnert Park in consideration of and subject to the terms, conditions, and benefits set forth in this Agreement; WHEREAS, Employee has the necessary education, experience, skills and expertise to serve as the Human Resources Director; WHEREAS, the City Manager, as appointing power, and Employee desire to agree in writing to the terms and conditions of Employee’s employment; AGREEMENT NOW, THEREFORE, THE PARTIES HERETO AGREE AS FOLLOWS: 1. DUTIES. (a) City agrees to employ Employee as Human Resources Director of the City of Rohnert Park to perform the functions and duties specified in the City of Rohnert Park Job Description for the Human Resources Director position attached hereto as Exhibit A, and to perform other legally permissible and proper duties and functions as City Manager may from time to time assign. (b) Employee shall perform her duties to the best of her ability in accordance with the highest professional and ethical standards of the profession and shall comply with all general rules and regulations established by City. (c) Employee shall not engage in any activity, which is or may become a conflict of interest, prohibited contract, or which may create an incompatibility of office as defined under California law. Prior to performing any services under this Agreement and annually thereafter, Employee must complete disclosure forms required by law. 2. TERM. The term of this Agreement shall be from the 29th day of January, 2014 through the 28th day of January, 2017, or until terminated by either party in accordance with the provisions set forth in Paragraph 3 or by the event of the death or permanent disability of Employee. Page 2 of 6 3. RESIGNATION AND TERMINATION. (a) Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of Employee to resign at any time from her position as City's Human Resources Director. Employee may terminate this Agreement by submitting written notice of her resignation to City. Employee shall give the City thirty (30) days written notice of her intention to resign. (b) Employee is an "at will" employee who serves at the pleasure of the City Manager and nothing herein shall be taken to prevent, limit or otherwise interfere with the right of the City Manager to terminate the services of Employee as Human Resources Director with or without cause at any time. There is no express or implied promise made to Employee for any form of continued employment. Further, nothing in this Agreement is intended to, or does, confer upon Employee any due process right to a hearing or other administrative process pertaining to termination, before or after a decision by the City to terminate her employment, unless Employee is entitled to a name clearing hearing under California or federal law. No terms of this Agreement may be altered without an express written document signed by the Employee and City Manager and approved by the City Council. (c) Employee may be terminated for cause at any time by providing Employee written notice of her termination for cause. Termination for cause means termination based upon a breach of any of the terms of this Agreement, malfeasance of any nature occurring during the course and scope of the Employee's duties as Human Resources Director; or a conviction, plea bargain, or personal adverse State or federal determination against Employee individually involving any felony, intentional tort, crime of moral turpitude, violation of statute or law constituting forfeiture of office, misconduct in office for personal gain, misuse of public funds for personal benefit, conflict of interest resulting in conviction, or any other incompatible activity or conflict of interest listed in Section 7 of City Personnel Rules and Regulations. (d) Severance Benefits (1) In the event Employee is terminated from employment without cause while still willing and able to perform her duties under this Agreement during Employee's initial 12 months of employment, Employee shall not be entitled to any severance benefits. In the event Employee is terminated from employment without cause while still willing and able to perform her duties under this Agreement during the 13th through 24th months of Employee's employment, then City agrees to pay Employee a lump sum cash payment equal to one (1) month of her base monthly compensation. In the event Employee is terminated from employment without cause while still willing and able to perform her duties under this Agreement during the 25th through 36th months of Employee's employment, then City agrees to pay Employee a lump sum cash payment equal to two (2) months of her base monthly compensation. In addition, City shall extend to Employee the right to continue health insurance as may be required by and pursuant to the terms and conditions of the Consolidated Omnibus Budget Act of 1986 (COBRA). (2) In the event Employee is terminated for cause, Employee shall be entitled to only the compensation earned and accrued and such other termination Page 3 of 6 benefits and payments as may be required by law. Employee shall not be entitled to any severance benefits. 4. COMPENSATION AND BENEFITS. (a) City agrees to pay Employee for her services rendered pursuant hereto as Human Resources Director a gross monthly salary of ten thousand four hundred twenty-seven dollars ($10,427.00) payable in installments at the same time as other employees of the City are paid and subject to all applicable payroll taxes and withholdings. The position of Human Resources Director is exempt under the Fair Labor Standards Act and, therefore, no overtime pay will be paid to Employee based on hours worked. (b) Employee shall be entitled to all benefits, rights, and privileges accorded to the non-public safety Management Unit except as otherwise provided in this Agreement. If there is any conflict between this Agreement and any resolution fixing compensation and benefits for non-public safety City Department Directors or other unclassified employees, this Agreement shall control. (c) Employee shall be included in the City’s Miscellaneous Plan with the California Public Employees’ Retirement System (“CalPERS”); and enrolled in the two percent (2.0 %) at age sixty-two (62), highest three year average program if she meets the definition of a “new employee” under PEPRA. Employee shall contribute the total "employee contribution" required by law; if she meets the definition of a "new employee" under PEPRA, it is anticipated that this contribution will be fifty percent (50%) of the normal cost rate as actuarially determined by CalPERS. (d) Employee is subject to City Personnel Rules and Regulations as an Executive Management Employee and is exempt from specific rules and regulations as set forth in Section 1, subsection (C) of the Personnel Rules, as amended or supplemented from time to time. Employee is exempt from the City’s Grievance Policy and Procedure as set forth in Resolution No. 79-22 and incorporated by reference into the Management Unit Outline and City Personnel Rules and Regulations. (e) If available and budgeted, City will provide up to three thousand dollars ($3,000) per fiscal year for Employee’s professional development expenses. Use of these dollars shall be subject to the prior approval of the City Manager. 5. INDEMNIFICATION. In accordance with the terms, conditions, and limitations of the Government claims Act (Gov't Code §§ 810 et seq.), City shall defend, save harmless, and indemnify Employee against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Employee's duties as Human Resources Director. Based on its sole discretion, the City will determine whether to compromise and settle any such claim or suit and the amount of any settlement or judgment rendered thereon. Said indemnification shall extend beyond termination of employment, and the otherwise expiration of this Agreement for any acts undertaken in her capacity as Human Resources Director, regardless of whether the notice of filing of a lawsuit Page 4 of 6 for such tort, claim, demand, or other legal action occurs during or following Employee's employment with City as Human Resources Director. 6. CONFLICT OF INTEREST PROHIBITION. Employee represents and warrants to City that, to the best of her knowledge, she presently has no interest, and represents that she will not acquire any interest, direct or indirect, financial or otherwise, which would conflict in any manner or interfere in any way with the performance of her duties under this Agreement. 7. CONFIDENTIAL INFORMATION. “Confidential Information” is all non-public information pertaining to the business of City (or any City affiliate), its employees, clients, consultants, or business associates, which was produced by any employee of City in the course of his/her employment or otherwise produced or acquired by or on behalf of City. Confidential Information shall include, without limitation, proprietary information such as trade secrets, confidential financial data and formulae, attorney client-privileged information, confidential licensing information, software and other computer programs, copyrightable material, and other information exempt from production under the California Public Records Act and/or the Freedom of Information Act. During her employment by City, Employee shall disclose Confidential Information only for the benefit of City and as may be necessary to perform her job responsibilities under this Agreement. Following termination, Employee shall not disclose any Confidential Information, except with the express written consent of City. Employee’s obligations under this Section shall survive the termination of her employment and the expiration of this Agreement. 8. OTHER TERMS AND CONDITION OF EMPLOYMENT. The City Manager may fix any other terms and conditions of employment, as he or she may determine from time to time, relating to the performance of Employee, provided such terms and conditions are not inconsistent with provisions of this Agreement or law. Any changes to the terms and conditions of employment will not be effective without a writing signed by the City Manager and Employee, and approved by the City Council. 9. GENERAL EXPENSES. City recognizes and agrees to pay and/or reimburse Employee for reasonable and necessary travel, subsistence and other business expenses incurred by Employee in the performance of her duties with prior approval by the City Manager. 10. NOTICES. Any notices required by this Agreement shall be in writing and either given in person or by first class mail with postage prepaid and addressed as follows: TO CITY: City Manager City of Rohnert Park Page 5 of 6 130 Avram Avenue Rohnert Park, CA94928 TO EMPLOYEE: Victoria Perrault Home Address on File with Human Resources 11. ATTORNEY'S FEES. In the event of any mediation, arbitration or litigation to enforce any of the provisions of this Agreement, each party shall bear its own attorney's fees and costs. 12. ENTIRE AGREEMENT. This Agreement is the final expression of the complete agreement of the parties with respect to the matters specified herein and supersedes all prior oral or written understandings, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. Except as prescribed herein, this Agreement cannot be modified except by written mutual agreement signed by both parties and approved by the City Council. To the extent that the practices, policies, or procedures of City, now or in the future, apply to Employee, and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control. 13. ASSIGNMENT. This Agreement is not assignable by either City or Employee. 14. SEVERABILITY. In the event that any provision of this Agreement is finally held or determined to be illegal or void by a court having jurisdiction over the parties, the remainder of the Agreement shall remain in full force and effect unless the parts found to be void are wholly inseparable from the remaining portion of the Agreement. 15. PROVISIONS THAT SURVIVE TERMINATION. Some sections of this Agreement are intended by their terms to survive the Human Resources Director’s termination of employment with the City, including but not limited to Sections 5. These sections, and the others so intended, shall survive termination of employment and termination of this Agreement. 16. JURISDICTION AND VENUE. This Agreement shall be construed in accordance with the laws of the State of California, and the Parties agree that venue shall be in Sonoma County, California. 17. NO WAIVER OF DEFAULT. Page 6 of 6 The failure of any party to enforce against another party any provision of this Agreement shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Agreement. 18. EFFECTIVE DATE. This Agreement shall be deemed effective on the 29th day of January, 2014. 19. ACKNOWLEDGMENT. Employee acknowledges that she has had the opportunity to consult legal counsel in regard to this Agreement, that she read and understands this Agreement, that she is fully aware of its legal effect, and that she has entered into it freely and voluntarily and based on her judgment and not on any representations or promises other than those contained in this Agreement. IN WITNESS WHEREOF, the City has caused the Agreement to be signed and executed on its behalf by its City Manager. It has also been executed by Employee on the date first above written. CITY OF ROHNERT PARK By:_____________________________ Darrin Jenkins City Manager Per Resolution No. 2014-007 adopted by the Rohnert Park City Council on January 28, 2014. By:_______________________ JoAnne Buergler City Clerk EMPLOYEE By:______________________________ Victoria Perrault APPROVED AS TO FORM: By:__________________________ Michelle Marchetta Kenyon City Attorney ITEM NO. 7 1 Meeting Date: January 28, 2014 Department: Finance Submitted By: Mark Walsh, Interim Finance Director Prepared By: Mark Walsh, Interim Finance Director Agenda Title: Fiscal Year 2012-13 Financial Audit RECOMMENDED ACTION: Accept Financial Statement Audit and Financial Reports BACKGROUND: The City of Rohnert Park contracts with a CPA firm to conduct an annual audit of the City’s financial statements that are included in a Comprehensive Annual Financial Report (CAFR). The independent auditor, Vavrinek, Trine, Day and Company, LLP has completed their audit, and has issued an “unqualified,” (clean), opinion on the City’s annual financial statements. The Finance Department of the City of Rohnert Park facilitated the annual audit, and requests the City Council’s acceptance of the auditor’s opinion and the financial statements. ANALYSIS: The City’s Finance Department prepares a comprehensive annual financial report (CAFR) each year that includes financial statements prepared in accordance with generally accepted accounting principles applicable to governments in the United States of America (GAAP), and the statements are subjected to an audit by an independent certified public accounting (CPA) firm conducted in accordance with generally accepted auditing standards applicable to state and local governments (GAAS). The CAFR includes the financial statements for the City, and the Rohnert Park Financing Authority, a legally separate component unit for which the City Council maintains fiscal accountability. The audit has been completed, and the City’s Finance Department is delivering the report to the Mayor and City Council, while bringing attention to these related matters: a) The auditor issued a clean opinion. The auditor’s “unqualified” opinion means the financial statements are fairly presented, and they did not have to say “except for this or that” in the report. The external auditor did not note significant deficiencies in the internal control structure of the City. b) The Government Finance Officers Association (GFOA) awarded the City of Rohnert Park a Certificate of Achievement for Excellence in Financial Reporting for the prior year’s financial report. The GFOA is the widely-recognized “best practice” body for governmental accounting, Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 7 2 auditing and financial reporting. The award means the government went above and beyond the call of GAAP to provide a comprehensive financial conversation with the public. c) The “Letter of Transmittal” included in the CAFR makes the report a little easier to understand, and a lot less boring. That section describes what’s included and what isn’t as far as the City’s financial transactions are concerned (The reporting entity); discusses major initiatives of the government; and comments on the future outlook. We thank the City Manager for his assistance in preparing that communication for the citizenry. d) The “Management Discussion and Analysis” section provides a brief analysis of events from a financial statement perspective, and is good reading for those desiring a description of significant transactions for the year. e) The statistical section provides interesting historical and demographical information like the tax revenues for the last ten years; and principal employers, currently and four years ago. f) Note 18 to the financial statements describes a “subsequent event,” something occurring after the balance sheet date that requires disclosure to give the reader a clearer picture of the financial condition. As more fully described in note 18, on November 1, 2013, the State of California Department of Finance provided conditional approval for repayment of an amount advanced by the City of Rohnert Park to its former Redevelopment Agency. The conditions will require re-evaluation of a $2,075,000 “advance to successor agency” recorded in the City’s books at June 30, 2013. g) Significant and successful efforts were made by Ana Kwong, Accounting Supervisor to close the books, provide information to the auditors, update statistical information, and facilitate the peer review work of the GFOA. h) The external auditor is available to describe the audit to the City Council. i) The Finance Department staff is available to answer questions of the City Council, Rohnert Park citizens, and interested readers of the financial statements, and will meet with interested parties upon request. Department Head Approval Date: 1/15/2014 City Manager Approval Date: 1/15/2014 City Attorney Approval Date: N/A Attachments (list in packet assembly order): 1. City of Rohnert Park Comprehensive Annual Financial Report 2. City of Rohnert Park Financing Authority Basic Financial Statements 3. City of Rohnert Park Independent Accountants’ Report on Agreed-Upon Procedures Applied to Appropriations (GANN) Limit Schedule CITY OF ROHNERT PARK, CALIFORNIA Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2013 Prepared by Finance Department CITY OF ROHNERT PARK 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS Page INTRODUCTORY SECTION Letter of Transmittal I-1 GFOA Certificate of Achievement for Excellence in Financial Reporting I-7 Organizational Chart I-8 List of City Officials I-9 FINANCIAL SECTION Independent Auditor's Report F-1 Management’s Discussion and Analysis (Required Supplementary Information) F-4 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position F-15 Statement of Activities F-16 Fund Financial Statements: Governmental Funds: Balance Sheet F-17 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position – Governmental Activities F-18 Statement of the Revenues, Expenditures, and Changes in Fund Balances (Deficit) F-19 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-wide Statement of Activities – Governmental Activities F-20 Proprietary Funds: Statement of Fund Net Position F-21 Statement of Revenues, Expenses, and Changes in Fund Net Position F-22 Statement of Cash Flows F-23 Fiduciary Funds: Statement of Fiduciary Net Position F-24 Statement of Changes in Fiduciary Net Position F-25 Notes to the Basic Financial Statements F-26 Required Supplementary Information (unaudited): Schedule of Funding Progress F-66 Budgetary Comparison Schedules: General Fund F-67 Housing Projects Special Revenue Fund F-71 Public Facilities Finance Fee Special Revenue Fund F-72 Note to Required Supplementary Information F-73 Supplementary Information: Combining and Individual Fund Statements and Schedules: Other Governmental Funds: Description of Other Governmental Funds F-74 CITY OF ROHNERT PARK 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (CONTINUED)Page Supplementary Information (Continued): Combining Balance Sheet F-76 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances F-77 Nonmajor Special Revenue Funds: Combining Balance Sheet F-78 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances F-80 Budgetary Comparison Schedules: State Gasoline Tax Special Revenue Fund F-82 Measure M Traffic Special Revenue Fund F-83 Prop 1B Special Revenue Fund F-84 Traffic Signals Fee Special Revenue Fund F-85 Capital Outlay Fee Special Revenue Fund F-86 Supplemental Law Enforcement Services Special Revenue Fund F-87 DIVCA (AB2987) PEG Fees Special Revenue Fund F-88 Traffic Congestion Relief Special Revenue Fund F-89 Graton Mitigation Fund F-90 Graton Mitigation Special Enforcement Activity Fund F-91 Measure M Fire Benefit Assessment Special Revenue Fund F-92 Mobile Home Rent Appeals Board Special Revenue Fund F-93 Copeland Creek Drainage Facility Special Revenue Fund F-94 Fiduciary Funds Combining Statement of Fiduciary Net Position F-95 Combining Statement of Changes in Fiduciary Net Position F-96 STATISTICAL SECTION (UNAUDITED) Net Position by Component – Last Ten Fiscal Years S-3 Changes in Net Position – Last Ten Fiscal Years S-4 Program Revenues by Function/Program – Last Ten Fiscal Years S-6 Fund Balances of Governmental Funds – Last Ten Fiscal Years S-7 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years S-8 Tax Revenues by Source – Governmental Funds – Last Ten Fiscal Years S-10 Assessed Value and Estimated Accrual Value of Taxable Property – Last Ten Fiscal Years S-11 Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years S-12 Property Tax Levies and Collections – Last Ten Fiscal Years S-13 Taxable Sales by Category – Last Ten Calendar Years S-14 Direct and Overlapping Sales Tax Rates – Last Ten Fiscal Years S-15 Principal Sales Tax Remitters – Current Year and Nine Years Ago S-16 Ratios of Outstanding Debt by Type – Last Ten Fiscal Years S-17 Ratios of General Bonded Debt Outstanding – Last Ten Fiscal Years S-18 Direct and Overlapping Governmental Activities Debt – As of June 30, 2013 S-19 Legal Debt Margin Information – Last Ten Fiscal Years S-20 CITY OF ROHNERT PARK 2013 COMPREHENSIVE ANNUAL FINANCIAL REPORT TABLE OF CONTENTS (CONTINUED)Page STATISTICAL SECTION (UNAUDITED) (CONTINUED) Pledged Revenue Coverage – Last Ten Fiscal Years S-21 Demographic and Economic Statistics – Last Ten Calendar Years S-22 Principal Employers – Current Year and Four Years Ago S-23 Full-Time-Equivalent City Government Employees by Function/Program S-24 Operating Indicators by Function/Program – Last Ten Fiscal Years S-25 Capital Asset Statistics by Functions/Program – Last Ten Fiscal Years S-26 I-1 130 Avram Avenue •Rohnert Park CA •94928 •(707) 588-2226 •Fax (707) 792-1876 www.rpcity.org City Council Joseph T. Callinan Mayor Amy O. Ahanotu Vice Mayor Gina Belforte Jake Mackenzie Pam Stafford Council Members ________________ Darrin Jenkins City Manager Michelle Marchetta Kenyon City Attorney Alexandra M. Barnhill Assistant City Attorney JoAnne Buergler City Clerk Brian Masterson Director of Public Safety John McArthur Director of Public Works and Community Services Mark Walsh Interim Finance Director Marilyn Ponton Interim Development Services Director January 15, 2014 Members of the City Council: The Comprehensive Annual Financial Report (CAFR) of the City of Rohnert Park for the fiscal year 2012-13 is hereby submitted. This report was prepared by the Finance Department, which is responsible for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures. We believe the data, as presented, is accurate in all material aspects and presented in a manner designed to fairly set forth the financial position and changes in financial position of the City as measured by the financial activity of its various funds, and that all disclosures necessary to enable the reader to gain the maximum understanding of the City’s financial affairs have been included. This is the twelfth year that the City has prepared the CAFR using the financial reporting requirements as prescribed by the Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements – Management’s Discussion and Analysis – for State and Local Governments. This GASB Statement 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 MD&A can be found immediately following the report of the independent auditors. THE REPORTING ENTITY The CAFR includes the funds and account groups of the primary government, which includes several enterprise activities, as well as all of its component units. Component units include legally separate entities for which the primary government is financially accountable and that have substantially the same board as the City or provide services entirely to the City. Accordingly, the Rohnert Park Financing Authority's financial information is blended with the City's information in this report. The City was incorporated in August 1962. The City has a council-manager form of government. Five persons are elected by popular vote to serve four-year terms on the City Council. Elections are held every two years. The Mayor is separately elected to a one-year term by members of the City Council from among the City Council members. The Mayor acts as the presiding officer of the City Council. Policies established by the City Council are implemented through the office of the City Manager. Economic Condition and Outlook The City is located in beautiful Sonoma County, approximately forty-five miles north of San Francisco on US Highway 101. It is home to approximately 41,000 people, Sonoma State University, the Green Music Center and the award winning Foxtail Golf Course. A neighboring government, the Federated Indians of the Graton Rancheria (Tribe) opened a newly constructed casino in November 2013. As one of the first planned communities, Rohnert Park enjoys the benefits of a coordinated system of bike trails and paths, schools and parks, in every neighborhood. More than 50 restaurants including all the best national chains offer diners the flavors they crave. Residents enjoy sweeping views of Sonoma and Taylor Mountains, preserved from development forever. Rohnert Park is just minutes from popular tourism venues including hundreds of local wineries, the Pacific Ocean, and giant redwoods. I-2 Sonoma County is an attractive international destination and outdoor recreational mecca, with wine related products, specialty foods, wellness programs and spa experiences; which adds further long-term potential. The close proximity to major Bay Area attractions will continue to support tourist traffic. Sonoma County’s economy is beginning to recover. All of the primary sectors are expected to experience modest growth. The unemployment rate fell to 6.7 percent compared to a year ago at 8.9 percent; sales tax revenues are up; hotel occupancy and room rates have increased; and Property tax remains flat although property transfer tax has risen. The growth will be attributable to Sonoma County being an attractive international destination, with close proximity to major Bay Area attractions that are a draw for many tourists. MAJOR INITIATIVES For the Year In response to the current economic conditions, the City has taken a more proactive approach and has developed a Strategic Plan for the City of Rohnert Park for 2012-2016. The strategic plan provides a comprehensive framework which includes an economic development plan, capital improvement plan, a budget process, policy issues, organizational efficiencies and the General Plan. The City implemented Zero Based Budgeting for budget 2012-13 which was a prudent and useful exercise to re- evaluate each line item in the budget. Expenditures were trimmed, vacant positions were frozen and facility maintenance and capital equipment purchases have been postponed. Revenue projections were higher than the previous year as the City benefits from the passage of a Measure E ½ cent sales tax measure that provided $3.2 million in fiscal year 2013. The Measure E half-cent sales tax approved by 55.4% of voters in the June 2010 election authorized the City to collect the tax for five years unless an extension was approved by the City Council and voters. Rohnert Park citizens approved an extension of the half-cent tax collection with a 67.3% "yes" vote for Measure A in the November 2013 election. Measure A removed the five-year sunset provision of Measure E, and allows collection of the additional sales tax unless its expiration date is changed by unanimous vote of the City Council. The City discontinued its practice of selling surplus property to offset structural budget deficits and is implementing a long-term financial recovery plan which includes reviewing revenue opportunities, looking for ways to provide essential city services, and building the infrastructure needed to attract new residents and businesses. To address the decline in revenues in past years and to absorb increasing health care and pension costs, the City only spends what is necessary to stay within our means, while still maintaining essential services. Labor contracts were modified and required employees to pay their portion of pension contributions and negotiated furloughs as an additional cost saving measures. The City also has postponed facility maintenance and postponed the purchase of equipment and vehicles. The City places a high importance on technology and information systems. The City network serves five primary facilities: City Hall, Public Safety, Public Works, Senior Center and the Community Center Complex. These primary sites are linked using leased fiber-optic services. Data and voice information is run over these links and the appropriate firewalls, routers and switches are in place. All internet traffic is routed through a data center at the City of Rohnert Park Annex, increasing network security. The City leases servers, desktops, and notebooks so there is very little cost in keeping the equipment up to date and removing outdated hardware. The City continues to research and implement technologies that reduce operating costs, such as the server virtualization program that obviates the need for numerous and expensive physical servers. Future plans are to continue to consolidate resources in an effort to control costs and maintain a high level of service. I-3 The Rohnert Park Department of Public Safety serves the citizens of Rohnert Park by performing both Police and Fire functions. The Officers are trained as both police officers and firefighters as an effective way to provide a quick response to either structure fires or a crime event. Upgrades to public safety response systems are continued for FY 13-14, and link Rohnert Parks’ safety resources with neighboring public safety response agencies throughout Sonoma County. The Public Works and Community Services Department is a full-service department that is responsible for the construction, operation, maintenance, and repair of most of the City’s infrastructure, facilities and community programs. In addition to performing regularly assigned duties, staff responds to over 5,000 citizen requests each year and responds to a variety of system problems and emergencies 24 hours per day, 7 days per week. The Department is organized by function into three distinct divisions: Utilities, General Services, and Community Services. The Utilities Division consists of potable water, sewer, and drainage systems. Most utility system functions are heavily regulated where many day-to-day functions are mandated. This division is staffed at a minimum of five days a week but is also monitored 24-7 through the City’s computer-controlled wireless network. The General Services Division consists of streets, buildings, fleet, and parks maintenance. This division is also responsible for the implementation of components of the City’s Greenhouse Gas Action Plan and the administration of the Foxtail Golf Course lease agreement. The Community Services Division operates several major City facilities including: Callinan Sports & Fitness Center, four community centers, Senior Center, pottery studio as well as several parks, community gardens, dog parks, athletic fields, tennis courts, and three swimming pools. Community Services staff also either runs or oversees several youth and adult programs, sports leagues, classes, and community events. In addition, the staff at the Spreckels Performing Arts Center is taking innovative steps toward making the city owned and operated facility not only a valuable community asset but a financial asset as well. The new theater performances have been well received by the community and have also recovered all production costs. The City has also upgraded its freeway signage by installing a state-of-the-art message center through a ground lease agreement with a private advertising firm. This provides advertising opportunities for local business and earns the City a modest amount of rental income. The Development Services Department manages land and building development from concept to completion; maintains and implements the City’s General Plan and Zoning Code; plans and builds Rohnert Park’s infrastructure; plans for Rohnert Park’s physical and resource needs by working with local, regional and state agencies to ensure that there is enough water supply and sewer treatment for Rohnert Park citizens and businesses now and in the future; and ensures safe structures and physically attractive neighborhoods by enforcing the California Building Standards Code. In FY12/13 automation efforts included extension of web services by offering online permitting services to developers and the public, increased utility payment possibilities. The Department has worked diligently to process land use entitlements and permits for significant land developments this year (Sonoma Mountain Village, Southeast Specific Plan and University District Specific Plan), and the results of this work will be seen in the fiscal year to follow. Despite the reduction in staffing due to budgetary constraints, all City employees are committed to keeping our City safe and providing the highest quality of public service to our community. I-4 For the Future Rohnert Park is home to some of the region’s most affordable, high-quality commercial space. The downsizing of the telecommunication industry in the early 2000’s has left Rohnert Park with a surplus of commercial units. Economic development efforts are focused on stimulating interest in locating to Rohnert Park. Recently, several companies have moved to the former Agilent site, now known as Sonoma Mountain Village. City staff is optimistic that one or two medium-sized companies will move into the City’s central office area in the coming year. The City has encouraged or directly invested in several projects to increase foot traffic and daytime presence in the City’s central area. Tourism is a key industry in Rohnert Park, contributing significantly to the tax base. The City partners with the Chamber of Commerce and the Sonoma County Tourism Bureau to promote Rohnert Park as a destination. Rohnert Park has seven hotels/motels which provide almost 1,000 rooms, and plan to attract more hotels in the near future. The largest property is the Doubletree Hotel, which offers convention and meeting facilities. The Hampton Inn captures a previously un-met segment of the tourism market. Rohnert Park offers a number of amenities for the traveler, including two 18-hole golf courses, a Performing Arts Center, and a strong base of dining experiences. The Green Music Center at Sonoma State University includes a world-class concert hall to showcase music and provides education programs year-round. The music center attracts visitors from within the region and nationwide, due to the quality of the concert experience. The City is committed to realizing new development anticipated in its General Plan (GP). The GP articulates a vision for the City that includes an urban growth boundary correlated with a growth management program. It describes a framework of targeted growth areas, including the creation of a City Center area, the development of a mixed use area north of the Sonoma State University to integrate with the Green Music Center, the development of balanced neighborhoods with a variety of housing types, the expansion of commercial uses to the northwest, and the continued expansion of the City’s network of parks and open space. The GP provides for an average growth rate of 1% with an ultimate build-out of approximately 20,000 housing units, 405 acres of commercial, office and industrial uses, 60 acres of mixed use, and 190 acres of open space over the next twenty years. Legal challenges to the City’s General Plan have been resolved in the City’s favor and the City is in the midst of Development Agreement discussions with several development groups. Due to recent downward economic trends, construction is not anticipated until 2014. FINANCIAL INFORMATION Management of the City is responsible for establishing and maintaining internal controls designed to ensure that the assets of the City are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled timely and accurately to allow for the preparation of financial statements in conformity with accounting principles generally accepted in the United States of America. The City’s internal controls are designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept 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 costs and benefits requires estimates and judgments by management. Budgetary Controls.The objective of budgetary controls is to assure compliance with legal provisions embodied in the annual appropriated budget approved by the City Council. Activities of the General Fund, and certain Special Revenue and Enterprise Funds are included in the annual appropriated budget. The level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the fund level. The City also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. All unencumbered appropriations lapse at the end of the fiscal year. As demonstrated by the statements and schedules included in the financial section of this report, the City continues to meet its responsibility for sound financial management. I-5 Cash Management.The City’s goals for cash investing are prioritized to protect the principal invested, make cash available as needed for operations, and earn a return on investment; in that order. Cash is held primarily by the State and County Investment pools, with some operating cash kept in local banking institutions that provide efficient operating opportunities at very-low risk. The following table illustrates the cash invested by the City as of June 30, 2013, by investment type: Cash and Investments - June 30, 2013 Sonoma County Investment Pool $ 1,918,085 Cash, CD’s and money market funds 15,613,561 State Treasurer LAIF 19,244,418 Total Cash & Investments $36,776,064 Cash temporarily idle during the year was invested in certificates of deposit, State of California Local Agency Investment Fund (LAIF), Sonoma County Investment Pool, Certificates of Deposit and mutual funds. These investments are allowed under an investment policy adopted by the City Council. All CDs are FDIC secured and the City works with two brokerage firms to find attractive investment opportunities. Risk Management.The City is a member of Redwood Empire Municipal Insurance Fund (REMIF), a joint powers authority composed of cities located in Northern California. The City maintains coverage for property, liability and workers’ compensation through REMIF. As of June 30, 1995, REMIF discontinued its indemnity-type health insurance program and accordingly, the City presently contracts with Anthem Blue Cross for active employees and retirees under the age of 65; the City contracts with Hartford Insurance for 65+ retirees. Other health related employee fringe benefit programs used to be self-administered by the City and funded by the General Fund. The City presently contracts with Delta Dental for dental benefits and V.S.P. for vision benefits. OTHER INFORMATION Independent Audit.Management considers an annual audit by independent certified public accountants a sound and prudent business practice. The accounting firm of Vavrinek, Trine, Day & Co., LLP performed the annual audit for the City for the fiscal year ended June 30, 2013. The independent auditor's report on the basic financial statements and combining and individual fund statements and schedules is included in the financial section of this report. Awards.The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the fiscal year ended June 30, 2012. This was the thirty-first consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized comprehensive annual financial report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. I-6 Acknowledgments.The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the Finance Department. Most notably, Ana Kwong, Accounting Supervisor, worked diligently to prepare reports, reconciliations and supporting schedules, and facilities audit completion. Each member of the department has our sincere appreciation for the contributions made in the preparation of this report. Respectfully submitted, I-7 I-8 I-9 CITY OFFICIALS City Council: Pam Stafford, Mayor Joseph T. Callinan, Vice-Mayor Jake Mackenzie Gina Belforte Amy O. Ahanotu City Staff: City Manager……………………………………………...Gabriel A. Gonzalez Assistant City Manager…..……………………………… Darrin Jenkins City Attorney …………………………….........................Michelle Marchetta Kenyon Burke, Williams & Sorensen, LLP Finance Director………………………………………… Cathy Orme Director of Public Safety………………………………… Brian Masterson Development Services Manager …………………….. Marilyn Ponton Director of Public Works and Community Services…………………………………….. John McArthur City Clerk ……………………………………………….. JoAnne Buergler Advisory Commissions or Committees: Rohnert Park Association for the Arts Parks & Recreation Commission Planning Commission Mobile Home Parks Rent Appeals Board Senior Citizens Advisory Commission Sister City(s) Relations Committee Bicycle Advisory Committee Cultural Arts Commission F-1 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com F R E S N O L A G U N A H I L L S P A L O A L T O P L E A S A N T O N R A N C H O C U C A M O N G A R I V E R S I D E S A C R A M E N T O INDEPENDENT AUDITORS' REPORT The Honorable Mayor and Members of the City Council City of Rohnert Park, California Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rohnert Park (the City), as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the comptroller general of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. F-2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Rohnert Park, as of June 30, 2013, 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. Emphasis of Matter As described in Note 2 to the financial statements, the City adopted new accounting guidance, GASB Statement No. 63,Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position as of June 30, 2013. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the budgetary comparison schedules, and the schedules of funding progress as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other 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 introductory section, combining and individual nonmajor fund financial statements and schedules, and the statistical section are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and schedules are the responsibility of management and were derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. Such 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 auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. F-3 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 15,2014, on our consideration of the City’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the 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 the City’s internal control over financial reporting and compliance. Pleasanton, California January 15, 2014 CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-4 As management of the City of Rohnert Park (City) we offer readers of the City’s financial statements this overview and analysis of the City’s financial activities for the fiscal year ended June 30, 2013. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal and the City’s basic financial statements, which follow this section. FINANCIAL HIGHLIGHTS The assets of the City exceeded liabilities by $130,015,798 (net position) at June 30, 2013, an increase of $18,044,531 or 16.1 percent over the prior fiscal year. Of this amount, $23,225,583 (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors, $33,166,020 is restricted for specific purposes (restricted net position), and $73,624,195 is net investment in capital assets. For fiscal year 12-13 (FY 12-13) the increase in net position for business-type activities was $2,917,829; and the increase for governmental activities was $15,126,702. Capital assets increased by $3,346,473 during FY 12-13, caused primarily by a project to widen Rohnert Park’s Wilfred Avenue. At June 30, 2013, the City’s governmental funds reported combined ending fund balances of $53,439,934, an increase of $13,972,567 from June 30, 2012. The general fund reported fund balance of $11,253,101 at June 30, 2013; and reports fund balance in these respective categories: (1)$2,719,913 is “non-spendable” because money is not going to come in soon enough to support current spending, like the long-term portion of advances receivable, or the current asset will never be cash, like prepaid items. (2)$2,041,125 is restricted fund balance, representing amounts provided by external parties that are obligated for specific purposes by contract or legislation. (3)$2,391,104 is assigned by the City Council or City Manager in accordance with policy and/or budgetary directives. (4)$4,100,959 is unassigned balance, which represents the residual of total fund balance less the aforementioned categories. It is available for consideration in the budget process. Overall, the increase in net position reported in the citywide financial statements, the increase in capital assets, and the increase in general fund balance all indicate relative financial success for the year. The causes of these positive indicators are explained in the analysis section of this discussion. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components 1)Government-wide financial statements; 2)Fund financial statements and 3)Notes to the basic financial statements. This report also contains required and other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements are designed to provide readers with a broad overview of City finances, in a manner similar to a private-sector business. These financial statements provide both long-term and short-term information about the City’s overall financial status. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-5 The statement of net position presents information on all of the City’s assets and liabilities, with the difference between the two 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 improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent 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 related cash flows.Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to earned but unused vacation and sick leave. Both of these government-wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities)from other functions that are intended to recover all or in part a portion of their costs through user fees and charges (business-type activities).The governmental activities of the City include general government, public safety, public works, parks and recreation, and other. The business-type activities of the City include water operations, sewer operations and refuse collection operations. The government-wide financial statements include the City itself (known as the primary government), and a legally separate entity reported as a component unit, the Rohnert Park Financing Authority (the Financing Authority), for which the City is financially accountable. Fund Financial Statements financial information for funds, which are groupings of related accounts 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 finance-related legal compliance. All of the funds of the City can be divided into three categories:governmental funds,proprietary funds and fiduciary 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 funds 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 determining what financial resources are available in the near future to finance the City’s programs. 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 funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds organized according to their type (special revenue, debt service, capital projects and permanent funds). Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures and changes in fund balances for the General Fund; Housing Projects Special Revenue Fund; Financing Authority; the City Capital Projects; and Public Facility Finance Fee; all of which are considered to be major funds. Data from the remaining governmental funds are combined into a single, aggregated presentation entitled “other governmental funds”. Individual and combining fund data for each of these non-major governmental funds is provided as supplementary information in this report. Proprietary funds are generally used to account for services for which the City charges customers – either outside customers, or internal units of departments of the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more detail. The City maintains the following two types of proprietary funds: CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-6 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 the water, sewer, and refuse collection operations. Internal service funds are used to report activities that provide supplies and services for certain City programs and activities. The City uses an internal service fund to account for information systems services. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Fiduciary funds are used to account for resources held for the benefit of parties outside the City. The City’s private-purpose trust funds are reported as fiduciary funds. Since the resources of this fund are not available to support the City’s own programs, it is not reflected in the government-wide financial statements. The accounting used for the private-purpose trust fund is similar to that used for proprietary funds. Notes to the Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The required supplementary information includes the Pension Schedule of Funding Progress and the City’s General Fund and Housing Projects Special Revenue Fund budgetary comparison schedules. The City adopts an annual appropriated budget for its General Fund and Housing Projects Special Revenue Fund, and a budgetary comparison schedule has been provided to demonstrate compliance with this budget. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-7 GOVERNMENT-WIDE FINANCIAL ANALYSIS The following table represents a comparative analysis of the net position of governmental and business-type activities for the years ended June 30, 2013 and June 30, 2012: 2013 2012 2013 2012 2013 2012 Current and other assets 65,741,670$ 45,366,475$ 21,408,337$ 21,425,176$ 87,150,007$ 66,791,651$ Capitalassets, net 60,067,049 58,154,503 36,000,347 34,566,420 96,067,396 92,720,923 Totalassets 125,808,719 103,520,978 57,408,684 55,991,596 183,217,403 159,512,574 Current and other liabilities 10,005,821 4,348,882 11,441,058 12,412,040 21,446,879 16,760,922 Long-term liabilities 15,270,046 13,765,946 16,484,680 17,014,439 31,754,726 30,780,385 Totalliabilities 25,275,867 18,114,828 27,925,738 29,426,479 53,201,605 47,541,307 Net position: Net investment in capital assets 49,803,902 52,293,588 23,820,293 25,277,232 73,624,195 77,570,820 Restricted 33,166,020 27,482,966 - - 33,166,020 27,482,966 Unrestricted 17,562,930 5,629,596 5,662,653 1,287,885 23,225,583 6,917,481 Totalnet position 100,532,852$ 85,406,150$ 29,482,946$ 26,565,117$ 130,015,798$ 111,971,267$ Statement of Net Position GovernmentalActivities Business-type Activities Total Analysis of Net position –Net position may serve as a useful indicator of a government’s financial position. For the City, combined net position (government and business-type activities) totaled $130 million at June 30, 2013, comprised of total assets of $183.2 million, less total liabilities of $53.2 million. Combined net position increased by $18.0 million during the year, with assets increasing $23.7 million offset by liability increases of $5.7 million. Assets increased primarily due to contributions for the Eastside Sewer Trunk and Wilfred Avenue Widening projects discussed further in the funds’ analysis section of this discussion. The majority of the liability increase is related to actuarially-determined post-employment medical expenses in excess of cash payments (pay-go). A portion of the City’s net position (17.9%) represents unrestricted net position of $23.2 million, which may be used to meet the City’s ongoing obligations to citizens and creditors. An additional portion of the City’s net position of $33.2 million (25.5%) represents resources that are subject to external restrictions on how they may be used. At the end of the current fiscal year, the City reported positive balances in all three categories of net position, both for the City as a whole, as well as for its separate governmental and business-type activities except that the City Capital Projects Fund has a deficit of $0.5 million caused by fund expenditures in advance of related reimbursements and transfers that will occur next year. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-8 The following table indicates the comparative changes in net position for governmental and business-type activities for fiscal year June 30, 2013 and 2012: 2013 2012 2013 2012 2013 2012 Revenues: Program revenues: Charges for services 3,993,413$4,186,835$22,642,636$23,008,538$26,636,049$27,195,373$ Operating grants and contributions 15,128,681 2,125,258 --15,128,681 2,125,258 Capitalgrants and contributions 4,323,246 651,077 769,406 268,029 5,092,652 919,106 Generalrevenues: Property taxes 3,517,309 16,106,337 --3,517,309 16,106,337 Franchise taxes 1,682,427 1,695,706 --1,682,427 1,695,706 Other taxes 2,329,689 2,054,213 --2,329,689 2,054,213 State contributions not restricted to specific programs: Sales taxes 9,555,854 9,062,981 --9,555,854 9,062,981 Motor vehicle license fees 2,630,122 2,722,876 --2,630,122 2,722,876 Investment income 38,876 962,474 71,242 80,257 110,118 1,042,731 Other 4,348,120 181,941 --4,348,120 181,941 Totalrevenues 47,547,737 39,749,698 23,483,284 23,356,824 71,031,021 63,106,522 Expenses: Generalgovernment 10,772,401 14,017,267 --10,772,401 14,017,267 Public safety 14,347,850 14,403,785 --14,347,850 14,403,785 Public works 2,840,555 3,530,589 --2,840,555 3,530,589 Parks and recreation 3,085,681 3,266,821 --3,085,681 3,266,821 CulturalArts Center 704,021 587,931 --704,021 587,931 Interest on long-term debt 499,028 1,920,730 --499,028 1,920,730 Water --5,929,852 7,095,841 5,929,852 7,095,841 Sewer --11,768,056 10,659,707 11,768,056 10,659,707 Refuse collection --3,039,046 5,534,555 3,039,046 5,534,555 Totalexpenses 32,249,536 37,727,123 20,736,954 23,290,103 52,986,490 61,017,226 Excess (deficiency) before transfers 15,298,201 2,022,575 2,746,330 66,721 18,044,531 2,089,296 Transfers (171,499)65,415 171,499 (65,415)-- Extraordinary Item - dissolution of RDA -23,719,400 -- Change in net position 15,126,702 25,807,390 2,917,829 1,306 18,044,531 2,089,296 Net position, beginning of year - restated*85,406,150 59,598,760 26,565,117 26,563,811 111,971,267 86,162,571 Net position, end of year 100,532,852$85,406,150$29,482,946$26,565,117$130,015,798$88,251,867$ *See Note 15 for more information GovernmentalActivities Business-type Activities Total Statement of Activities CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-9 Governmental activities.Governmental activities increased the City’s net position by $15,126,702. Key elements of the change in net position are as follows: Total governmental activities revenue increased by $7,798,039 during FY 12-13 due to the net effect of an increase in operating and capital grants and contributions, modest growth in general fund tax-support revenue, and reimbursements for capital project contributions reported as other income; offset by the property tax decline attributed to the dissolution of the City’s prior Redevelopment Agency of approximately $12.5 million. The City's governmental activities operating grants and contributions revenue increased by $13,003,423 due to non-recurring contribution of $12.8 million from the Federated Indians of the Graton Rancheria (Tribe) for the Eastside Sewer Trunk Project. Capital grants and contributions increased year-over-year due to reimbursements made by the Tribe for the Wilfred Avenue Widening Project. General revenues and transfers decreased by $8,921,045 due to a reduction in property taxes caused by the dissolution of the former Redevelopment Agency; offset by modest gains in other categories of revenues, such as property taxes not related to redevelopment, transient occupancy taxes and sales taxes; and a one-time increase in other revenue to reimburse the City for its costs of the Wilfred Avenue Widening project. In May 2011, the City Council approved implementation of a “Fiscal Health Plan” that aligns operating expenditures with ongoing revenues. This plan calls for budget reductions in response to revenue decreases and increased costs of retirement and post-employment medical plans. The City now uses a ten-year forecasting tool to provide vision on long-term financial issues and to point out structural budgetary weaknesses. Total expenses decreased by $5,477,587. Operating expenses were reduced primarily in the areas of General Government, Public Works, and interest on long-term debt. This is a direct result of the City controlling expenditures to alignment with current operating revenue, and increased principal payments on debt. Business-type activities.Business-type activities increased the City’s net position by $2,917,829. Key factors of this increase are as follows: Net position in the Water Fund increased by $1,831,099 primarily due to a one-time reimbursement for a recycled water system provided by Sonoma County Water Agency. The Sewer Fund net position increased by $1,437,897 as revenues from operations exceeded expenditures. The increase is mainly due to a revised rate structure that sets aside money for future capital replacement. The refuse collection net position decreased by $351,167 primarily due to the shifting of refuse billings back to Rohnert Park Disposal, a non-governmental entity that provides refuse collection services. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-10 FINANCIAL ANALYSIS OF THE CITY’S FUNDS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds.The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of resources that are available for spending. Such information is useful in assessing the City’s financial requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year. Types of governmental funds reported by the City include the general fund, special revenue funds, debt service funds, capital projects funds and the permanent fund. As of the end of the current fiscal year, the City’s governmental funds reported combined fund balances of $53.4 million, an increase of $14 million in comparison with the prior year. The fund balance total is categorized as follows: $13.3 million is non-spendable,representing prepaid items and long-term receivables reported as advances loans, and notes; $31.5 million is restricted by external funding sources; $2.6 million is committed; $2.4 million is assigned and $3.6 million is un-assigned and available for use at the City’s direction. The restricted fund balance’s use is limited to the following purposes:a) street projects, $2.1 million; b) community development projects, $11.9 million; c) capital projects $15.1 million; and, d) general government, parks, recreation, and health and safety $2.4 million. For FY 12-13 revenues for governmental funds totaled $47.3 million, while expenditures totaled $33.1 million, for $14.2 million in revenues over expenditures. After net transfers out of $0.2 million, the reported combined change in governmental funds’ balances was $14.0 million. General Fund. The General Fund is the chief operating fund of the City. At June 30, 2013 the fund reports balances as follows: $2.7 million is non-spendable, representing prepaid items and long-term receivables; $2 million is restricted for housing programs, general government, parks, recreation, and health and safety; and, $2.4 is assigned to purposes designated by the City Council; and $4.1 million is unassigned fund balance. General fund balance increased $1.4 million due to the revenue and reimbursement increases and expenditure control. Sales and use tax increased by $0.5 million, and transient occupancy tax increase by $0.3 million, reflecting a modest economic recovery. Ongoing operating expenditures were flat, reflecting the Council’s budgetary directives. Changes to the method for allocating general fund costs to other funds caused increases in operating transfers and expenditures, but had no net impact on general fund balances. The Housing Projects Special Revenue Fund decreased by $1.8 million due to debt service requirements and a $1.0 million payment to the State of California, Department of Finance related to dissolution of the former Redevelopment Agency. The Public Facility Finance Fee Special Revenue Fund increased by $12.4 million mainly due to contributions made by the Tribe for the Eastside Sewer Trunk Project. Proprietary funds. The City’s proprietary funds provide the same type of information found in the government- wide financial statements, but in more detail. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-11 At the end of the fiscal year, the unrestricted net position for the Water Fund was $6.2 million; the Sewer Fund had an unrestricted net deficit of ($1.3 million); and the Refuse Collection Fund had unrestricted net position of $0.7 million. The total increase in net position for proprietary funds was $2.9 million from the prior year. Factors concerning the finances of these funds have been addressed previously in the discussion of the City’s business-type activities. Fiduciary funds. The City’s fiduciary funds consist of two private purpose trust funds: the RDA Obligation Retirement Trust Fund; and the Special Enforcement Unit – South. The RDA Obligation Retirement Trust Fund accounts for debt repayment and related tax receipts for the redevelopment agency that was dissolved in FY 11-12. The Special Enforcement Unit – South accounts for seized assets held for other governments. The net position of fiduciary activities increased by $983,800 primarily related to tax receipts in excess of debt service payments made by the successor agency to the former redevelopment agency. GENERAL FUND BUDGETARY HIGHLIGHTS The 2012-13 budget highlights are: Total operating revenue was budgeted at $22.1 million, relatively flat to the 2011-12 budget. Actual revenue beat expectations in many categories, with property tax $334,569 over budget due to residual tax distributions related to RDA dissolution. Sales tax was $557,267 over budget, and is attributed to increased local sales. Transient occupancy tax was $502,885 or 29.6% over budget, a positive sign of tourism rebounding. Revenue gains are indicative of the modest economic recovery. Total expenditures were budgeted at $26.2 million, an increase of $2.9 million over the previous year’s amended budget. The City made a concerted effort to reduce departmental operating budgets while maintaining the current level of service, as well as negotiate salary reductions for all employees. Total expenditures were under budget by $2.2 million for the fiscal year, primarily due to negotiated salary reductions, unfilled and vacancy positions, and tighter controls on materials, supplies and equipment spending. Total change in fund balance was budgeted to decrease by $2.7 million; however, primarily due to expenditures being below budget, total performance of the general fund had a positive variance of $4.1 million as compared to the final budget. CAPITAL ASSETS AND DEBT ADMINISTRATION Capital assets The City’s capital assets for its governmental and business-type activities as of June 30, 2013, amounted to $96 million (net of accumulated depreciation). Reported capital assets categories include land and easements; infrastructure, structures and improvements; equipment; and construction in progress. Major capital asset events during the current fiscal year included the following: For government activities, construction in progress increased by a net of $6.6 million. Projects in progress include: o American Recovery Act Street Maintenance $1.4 million; o Specific Plan projects $1.5 million; o Rancho Verde Traffic signal $0.4 million; CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-12 o Wilfred Widening project $3.5 million; o City street overlays $0.8 million; o Copeland Creek Bike Path Improvement $1 million; o Miscellaneous other projects. In total, $6.9 million was spent on open governmental projects, while $0.3 million of completed projects were transferred to structures and improvements. For business-type activities, construction in progress decreased by a net of $1 million. FY 12-13 significant construction expenses for business-type activities include: o Water projects, $1.3 million; Sewer projects, $2.1 million; and various other projects, $0.2 million. In total $2.7 million was spent on projects, while $3.7 million was transferred to improvements. For the government-wide financial statement presentation, all depreciable capital assets were depreciated from the acquisition date to the end of the current fiscal year. Governmental fund financial statements record capital asset purchases as expenditures. Capital assets for the governmental and business-type activities are presented below to illustrate changes from the prior year: Increase/ (Decrease) Percent 2013 2012 2013 2012 2013 2012 of Change Land and easements 6,906,156$ 6,906,156$ -$ -$ 6,906,156$ 6,906,156$ 0.0% Infrastructure, structures and improvements 105,419,217 105,989,163 51,032,157 47,350,923 156,451,374 153,340,086 2.0% Equipment 13,348,368 13,223,487 3,448,387 3,055,707 16,796,755 16,279,194 3.2% Construction in - progress 11,315,142 4,711,818 3,627,096 4,641,894 14,942,238 9,353,712 59.7% Accumulated depreciation (76,921,834) (72,676,121) (22,107,293) (20,482,104) (99,029,127) (93,158,225) 6.3% Total 60,067,049$ 58,154,503$ 36,000,347$ 34,566,420$ 96,067,396$ 92,720,923$ 3.6% Governmental activities Business-type activities Total The City’s infrastructure assets are recorded at historical cost in the government-wide financial statements as required by GASB Statement No. 34. Additional information about the City’s capital assets can be found in Note 7 to the financial statements. Debt Administration At June 30, 2013, the City’s governmental activities had total long-term debt outstanding of $4,156,943, excluding compensated absences of $1,449,103. Debt was comprised of $3,090,000 in certificates of participation; $473,095 for lease revenue refunding bonds; and, $593,848 for capital leases. Long-term debt decreased by $293,141, due to principal payments made during the year. At June 30, 2013, the City’s business-type activities had long term debt outstanding of $16,484,681, which was comprised of $11,210,000 of certificates of participation, and $5,274,681 of water revenue bonds. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-13 A City Ordinance imposes a limit on the amount of general obligation bonds the City can have outstanding at any given time. As of June 30, 2013, the City’s debt limit (15% of assessed valuation) was $542 million. At June 30, 2013, the City did not have any debt applicable to the limit outstanding. Increase/ (Decrease) Percent 2013 2012 2013 2012 2013 2012 of Change Certificates of participation $3,090,000 $3,280,000 $11,210,000 $11,490,000 $14,300,000 $14,770,000 -3.18% Lease revenue refunding bonds 473,095 465,131 - - 473,095 $465,131 1.71% Water revenue bonds - - 5,274,681 5,524,439 5,274,681 $5,524,439 -4.52% Capitalleases 593,848 704,953 - - 593,848 $704,953 -15.76% Total 4,156,943$ 4,450,084$ 16,484,681$ 17,014,439$ 20,641,624$ 21,464,523$ -3.83% Governmentalactivities Business-type activities Total Additional information about the City’s long-term obligations can be found in Note 8 to the financial statements. Economic Factors and Next Year’s Budget and Rates General fund revenues are expected to increase modestly over the next year. According to the Sonoma County Economic Development Board, Sonoma County has experienced job growth that is above the state and national growth. Although unemployment remains high relative to pre-recession levels, Sonoma County has seen steady decrease in the unemployment rate over the past 2 years. Major construction projects such as the Sonoma Marin Area Rail Transit (SMART) and the Sonoma County Airport expansion are expected to help the ailing construction sector and increase in tourism. The City has made concerted efforts to attract visitors, create jobs, and provided recreational activies, as evidenced by projects like the Donald & Maureen Green Music Center and the Graton Resort and Casino which have recently opened and drawn a great deal of public attention. The City Council’s decision to pursue construction of a $13 million sewer trunk line on the east side of the City is intended to boost residential housing projects and other projects in future years. Transient Occupancy tax increased by 13.5% for FY 12-13, and is projected to maintain that pace in FY13/14. Sales tax revenue in Rohnert Park increased by $492,873, or 5.4% over the prior year, mainly due to half-cent sales tax with Measure E performing well over projection. As sales tax is the largest source of revenue for the Rohnert Park General Fund (38%), the City has developed an economic development plan and focused on implementing facets of the plan during fiscal year 2012-13, which include continuing work on the new development in the specific plan areas, coordinating efforts to fill existing infill and working with the local business community to assist and retain local businesses. CITY OF ROHNERT PARK MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 F-14 To address the structural deficit created by the dramatic decline in revenues, the City continues to work to create a plan and establish a foundation from which we may work towards success with a 10 year financial recovery model, while still delivering the core essential services. The FY13/14 budget demonstrates the City’s commitment to continue to endure, yet maintain our core functions and services at the lowest possible cost. All of these factors were considered in preparing the City’s budget for FY 2013/14. Request for Information This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Finance Director, P.O. Box 1489, Rohnert Park, CA 94927-1489. CITY OF ROHNERT PARK STATEMENT OF NET POSITION JUNE 30, 2013 See accompanying notes to the basic financial statements. F-15 Business- Governmental type Activities Activities Total ASSETS Cash andinvestments $ 30,433,500 $ 12,623,667 $ 43,057,167 Receivables, net of allowance 5,489,741 4,202,047 9,691,788 Prepaiditems and other assets 583,228 5,525 588,753 Restricted cashand investments 17,433,439 4,304,626 21,738,065 Internal balances 125,130 (125,130) - Loans andnotes receivable, net 9,476,957 - 9,476,957 Advances to Successor Agency 2,199,675 - 2,199,675 Deferred costs of issuance - 397,602 397,602 Capital assets: Nondepreciable assets 18,221,298 3,627,096 21,848,394 Depreciable assets, net of accumulated depreciation 41,845,751 32,373,251 74,219,002 Total assets 125,808,719 57,408,684 183,217,403 LIABILITIES Accounts payable 4,526,434 924,609 5,451,043 Accrued liabilities 1,165,342 - 1,165,342 Deposits 3,781,665 362,504 4,144,169 Advances from Successor Agency 288,500 10,055,725 10,344,225 Unearned revenue 113,335 - 113,335 Interest payable 130,545 98,220 228,765 Long-term liabilities: Net OPEB liability (Note 10) 9,664,000 - 9,664,000 Debt due within one year 1,451,970 554,758 2,006,728 Debt due in more than one year 4,154,076 15,929,922 20,083,998 Total liabilities 25,275,867 27,925,738 53,201,605 NETPOSITION Net investment incapital assets 49,803,902 23,820,293 73,624,195 Restricted for: Housing projects 29,351,266 - 29,351,266 Street projects 2,123,052 - 2,123,052 Capital porjects 493,314 - 493,314 Performing Arts Center Endowment 1,198,388 - 1,198,388 Unrestricted 17,562,930 5,662,653 23,225,583 Total net position 100,532,852$ 29,482,946$ 130,015,798$ PrimaryGovernment CITY OF ROHNERT PARK STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. F-16 Operating Capital Business- Charges for Grants and Grants and Governmental type Expenses Services Contributions Contributions Activities Activities Total FUNCTION/PROGRAM ACTIVITIES: Primary government: Governmental activities: General government 10,772,401$ 855,997$ 174,087$ -$ (9,742,317)$ -$ (9,742,317)$ Public safety 14,347,850 661,454 596,267 - (13,090,129) - (13,090,129) Public works 2,840,555 879,340 1,245,156 4,323,246 3,607,187 - 3,607,187 Parks and recreation 3,085,681 1,192,894 13,113,171 - 11,220,384 - 11,220,384 Cultural Arts Center 704,021 403,728 - - (300,293) - (300,293) Interest on long-term debt 499,028 - - - (499,028) - (499,028) Total governmental activities 32,249,536 3,993,413 15,128,681 4,323,246 (8,804,196) - (8,804,196) Business-type activities: Water 5,929,852 7,421,931 - 10,681 - 1,502,760 1,502,760 Sewer 11,768,056 12,522,826 - 758,725 - 1,513,495 1,513,495 Refuse Collection 3,039,046 2,697,879 - - - (341,167) (341,167) Total business-type activities 20,736,954 22,642,636 - 769,406 - 2,675,088 2,675,088 Total primary government 52,986,490$ 26,636,049$ 15,128,681$ 5,092,652$ (8,804,196) 2,675,088 (6,129,108) General revenues: Property taxes 3,517,309 - 3,517,309 Franchise taxes 1,682,427 - 1,682,427 Transient occupancy taxes 2,202,885 - 2,202,885 Real property transfer taxes 126,804 - 126,804 State contributions not restricted to specific programs: Sales taxes 9,555,854 - 9,555,854 Motor vehicle license fees 2,630,122 - 2,630,122 Investment income 38,876 71,242 110,118 Other 4,348,120 - 4,348,120 Transfers (171,499) 171,499 - Total general revenues and transfers 23,930,898 242,741 24,173,639 Change in net assets 15,126,702 2,917,829 18,044,531 RESTATEMENT (NOTE 15) 342,359 - 342,359 NET POSITION, BEGINNING OF YEAR, 85,063,791 26,565,117 111,628,908 NET POSITION, END OF YEAR 100,532,852$ 29,482,946$ 130,015,798$ Program Revenues Primary Government Changes in Net Position Net (Expense) Revenue and CITY OF ROHNERT PARK BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30, 2013 See accompanying notes to the basic financial statements. F-17 Housing City Public Other Projects Special Financing Capital Facility Governmental General Revenue Fund Authority Projects Finance Fee Funds Total Cash and investments 9,417,867$ 70,716$ -$ 105,756$ 13,083,115 7,557,185$ 30,234,639$ Receivables, net: Taxes 1,189,015 - - - - - 1,189,015 Accounts 1,582,320 - - 2,489,279 - 213,466 4,285,065 Accrued interest 15,661 - - - - - 15,661 Due from other funds 152,422 - - - - 6,635 159,057 Prepaid items and other assets 583,228 - - - - - 583,228 Restricted cash and investments - 13,755,283 493,314 3,184,842 - - 17,433,439 Loans and notes receivable, net 61,685 9,415,272 - - - - 9,476,957 Advances to successor agency 2,199,675 - - - - - 2,199,675 Total Assets 15,201,873$ 23,241,271$ 493,314$ 5,779,877$ 13,083,115$ 7,777,286$ 65,576,736$ Accounts payable 1,371,206$ 75,000$ -$ 3,055,419$ -$ 24,809$ 4,526,434$ Accrued liabilities 1,165,342 - - - - - 1,165,342 Due to other funds 1,710 - - - - 32,217 33,927 Deposits 596,823 - - 3,184,842 - - 3,781,665 Deferred revenue 525,191 1,815,743 - - - - 2,340,934 Advances from successor agency 288,500 - - - - - 288,500 Total Liabilities 3,948,772 1,890,743 - 6,240,261 - 57,026 12,136,802 Nonspendable 2,719,913 9,415,272 - - - 1,198,388 13,333,573 Restricted 2,041,125 11,935,256 493,314 - 13,083,115 3,922,056 31,474,866 Committed - - - - - 2,604,735 2,604,735 Assigned 2,391,104 - - - - - 2,391,104 Unassigned 4,100,959 - - (460,384) - (4,919) 3,635,656 Total fund balances (deficit) 11,253,101 21,350,528 493,314 (460,384) 13,083,115 7,720,260 53,439,934 Total liabilities and fund balances 15,201,873$ 23,241,271$ 493,314$ 5,779,877$ 13,083,115$ 7,777,286$ 65,576,736$ FUND BALANCES (DEFICIT) ASSETS LIABILITIES CITY OF ROHNERT PARK RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET POSITION - GOVERNMENTAL ACTIVITIES JUNE 30, 2013 See accompanying notes to the basic financial statements. F-18 Amounts reported for governmentalactivities in the statement of net position are different because: Fund balances - totalgovernmentalfunds 53,439,934$ Capitalassets net of depreciation, used in governmentalactivities are not financial resources and, therefore, are not reported in the funds. 60,067,049 Internalservice funds are used by management to charge the costs of management of centralized data processing services and related billings to other City departments and individualfunds. The assets and liabilities are included in governmentalactivities in the statement of net position. 198,861 Long-term receivables and interest on deferred loans are not available to pay for current period expenditures and, therefore, are deferred on the modified accrualbasis. 2,227,599 Interest payable on long-term debt that does not require the use of current financial resources and, therefore, interest payable is not accrued as a liability in the balance sheet of governmentalfunds. (130,545) Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the governmentalfunds. Unfunded OPEB Liability (9,664,000)$ Certificates of participation (3,088,595) Lease revenue refunding bonds (474,500) Capitalleases (593,848) Compensated absences (1,449,103) (15,270,046) Net position of governmentalactivities 100,532,852$ CITY OF ROHNERT PARK STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES (DEFICIT) GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. F-19 Housing Projects City Public Other Special Financing Capital Facility Governmental General Revenue Authority Projects Finance Fee Funds Total REVENUES Taxes 16,564,950$ -$ -$ -$ -$ 520,329$ 17,085,279$ Intergovernmental 3,134,389 - - 1,442,865 - 1,336,322 5,913,576 Interest and rentals 337,801 5,820 7 - 3,879 26,009 373,516 Charges for current services 1,769,053 - - - - - 1,769,053 Licenses, permits and fees 1,161,006 - - - 13,113,171 132,837 14,407,014 Fines, forfeitures and penalties 200,266 - - - - - 200,266 Donations and miscellaneous 1,799,075 - - 3,118,216 - 2,664,000 7,581,291 Total revenues 24,966,540 5,820 7 4,561,081 13,117,050 4,679,497 47,329,995 EXPENDITURES Current: General government 5,599,919 1,267,110 - - - 42,948 6,909,977 Public safety 13,884,510 - - - - - 13,884,510 Public works 1,242,943 - - - - - 1,242,943 Parks and recreation 2,300,901 - - - - - 2,300,901 Cultural arts center 704,021 - - - - - 704,021 Capital outlay 350,487 - - 6,815,333 - - 7,165,820 Debt service: Principal - - 460,000 - - - 460,000 Interest and fiscal charges - 45,000 375,257 - - - 420,257 Total expenditures 24,082,781 1,312,110 835,257 6,815,333 - 42,948 33,088,429 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 883,759 (1,306,290) (835,250) (2,254,252) 13,117,050 4,636,549 14,241,566 OTHER FINANCING SOURCES (USES) Transfers in 1,038,718 - 646,217 2,758,546 - 561,534 5,005,015 Transfers out (563,589) (444,162) (105,730) (491,656) (698,100) (2,970,777) (5,274,014) Total other financing sources (uses) 475,129 (444,162) 540,487 2,266,890 (698,100) (2,409,243) (268,999) NET CHANGE IN FUND BALANCES 1,358,888 (1,750,452) (294,763) 12,638 12,418,950 2,227,306 13,972,567 FUND BALANCES (DEFICIT), BEGINNING OF YEAR 9,551,854 23,100,980 788,077 (473,022) 664,165 5,492,954 39,125,008 RESTATEMENT (NOTE 15)342,359 - - - - - 342,359 BEGINNING OF YEAR RESTATED 9,894,213 23,100,980 788,077 (473,022) 664,165 5,492,954 39,467,367 END OF YEAR 11,253,101$ 21,350,528$ 493,314$ (460,384)$ 13,083,115$ 7,720,260$ 53,439,934$ CITY OF ROHNERT PARK RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES- GOVERNMENTAL ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. F-20 Amounts reported for governmentalactivities in the statement of activities are different because: Net change in fund balances - totalgovernmentalfunds 13,972,567$ Governmentalfunds report capitaloutlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated usefullives and reported as depreciation expense. Capitalasset additions 7,517,158$ Capitalassets retirement (1,139,971) Depreciation (4,464,641) 1,912,546 Revenues recognized in the governmentalfunds that were earned and recognized in previous years and reported as beginning net position in the statement of activities. Revenues earned in the current year that did not meet the revenue recognition criteria for governmentalfunds are reported as revenues in the statement of activities. 216,381 The issuance of long-term debt provides current financialresources to governmentalfunds, while the repayment of the principalof long-term debt consumes the current financial resources of governmentalfunds, Neither transaction, however, has any effect on net position. Also, governmentalfunds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Principalrepayments: Certificates of participation 190,000$ Lease revenue refunding bonds 27,000 Capitalleases 111,105 328,105 Some expenses reported in the statement of activities do not require the use of current financialresources and therefore are not reported as expenditures in governmentalfunds. Change in unfunded OPEB liability (1,416,610)$ Change in accrued interest payable 105,970 Amortization of discount and deferred costs on refunding (52,846) Change in long-term compensated absences (38,272) (1,401,758) Internalservice funds are used by management to charge the costs of certain activities to individualfunds. The net revenue of the internalservice funds is reported with governmentalactivities. 98,861 Change in net position of governmentalactivities 15,126,702$ CITY OF ROHNERT PARK STATEMENT OF FUND NET POSITION PROPRIETARY FUNDS JUNE 30, 2013 See accompanying notes to the basic financial statements. F-21 Governmental Activity Refuse Internal Water Sewer Collection Total Service Current assets: Cash and investments: Operating 5,267,368$ 6,661,443$ 694,856$ 12,623,667$ 198,861$ Held for capitalimprovements 1,523,304 2,781,322 - 4,304,626 - Totalcash and investments 6,790,672 9,442,765 694,856 16,928,293 198,861 Accounts receivable, net 1,872,939 2,316,676 12,432 4,202,047 - Prepaid 5,525 - - 5,525 - Totalcurrent assets 8,669,136 11,759,441 707,288 21,135,865 198,861 Noncurrent assets: Deferred costs of issuance 137,954 259,648.00 - 397,602 - Capitalassets: Structures and improvements 17,355,596 33,676,560 5,509 51,037,665 - Furniture, fixtures and equipment 1,939,876 1,503,004 - 3,442,880 93,110 Construction in progress 1,504,692 2,122,404 - 3,627,096 - Totalcapitalassets 20,800,164 37,301,968 5,509 58,107,641 93,110 Less: accumulated depreciation (11,575,642) (10,527,232) (4,420) (22,107,294) (93,110) Net capitalassets 9,224,522 26,774,736 1,089 36,000,347 - Totalnoncurrent assets 9,362,476 27,034,384 1,089 36,397,949 - Totalassets 18,031,612 38,793,825 708,377 57,533,814 198,861 Current liabilities: Accounts payable 604,152 318,317 2,140 924,609 - Interest payable 54,703 43,517 - 98,220 - Due to other funds 125,130 - - 125,130 - Deposits 259,758 102,746 - 362,504 - Bonds payable 252,146 302,612 - 554,758 - Totalcurrent liabilities 1,295,889 767,192 2,140 2,065,221 - Noncurrent liabilities: Advances from successor agency - 10,055,725 - 10,055,725 - Bonds payable 4,848,098 11,081,824 - 15,929,922 - Totalliabilities 6,143,987 21,904,741 2,140 28,050,868 - Net investment in capitalassets 5,647,582 18,171,622 1,089 23,820,293 - Unrestricted 6,240,043 (1,282,538) 705,148 5,662,653 198,861 Totalnet position 11,887,625$ 16,889,084$ 706,237$ 29,482,946$ 198,861$ Business-type Activities - Enterprise Funds ASSETS LIABILITIES NET POSITION CITY OF ROHNERT PARK STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. F-22 Governmental Activity Refuse Internal Water Sewer Collection Total Service OPERATING REVENUES: Utility service charges 7,349,255$ 12,399,081$ 2,697,879 22,446,215$ -$ Charges for services - - - - 662,420 Penalties and other 72,676 123,745 - 196,421 - Totaloperating revenues 7,421,931 12,522,826 2,697,879 22,642,636 662,420 OPERATING EXPENSES: Contractualservices 2,644,054 99,146 2,991,944 5,735,144 33,534 Rent and leases 10,022 8,403,906 - 8,413,928 59,151 Payrolland related costs 1,624,479 1,154,059 13,141 2,791,679 246,676 Heat, light and power 198,547 71,528 - 270,075 - Other 230,534 274,768 17,649 522,951 - Depreciation 567,128 1,056,956 1,105 1,625,189 - Repairs, operations and maintenance 190,264 121,798 0 312,062 307,985 Professionalservices 127,844 9,861 15,134 152,839 - Supplies 65,404 33,167 73 98,644 14,430 Totaloperating expenses 5,658,276 11,225,189 3,039,046 19,922,511 661,776 OPERATINGINCOME (LOSS) 1,763,655 1,297,637 (341,167) 2,720,125 644 NONOPERATING REVENUES (EXPENSES) Intergovernmentalrevenue Investment income 28,255 42,987 - 71,242 717 Interest expense & Other (271,576) (542,867) - (814,443) - Totalnonoperating revenues (expenses) (243,321) (499,880) - (743,201) 717 INCOME (LOSS) BEFORE CONTRIBUTIONS AND TRANSFERS 1,520,334 797,757 (341,167) 1,976,924 1,361 Capitalcontributions 10,681 758,725 - 769,406 - Transfers In 352,084 228,945 - 581,029 97,500 Transfers out (52,000) (347,530) (10,000) (409,530) - Totalcontributions and transfers 310,765 640,140 (10,000) 940,905 97,500 CHANGE IN NET POSITION 1,831,099 1,437,897 (351,167) 2,917,829 98,861 NET POSITION, BEGINNING OF YEAR 10,056,526 15,451,187 1,057,404 26,565,117 100,000 NET POSITION, END OF YEAR 11,887,625$ 16,889,084$ 706,237$ 29,482,946$ 198,861$ Business-type Activities - Enterprise Funds CITY OF ROHNERT PARK STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. F-23 Governmental Activity Refuse Internal Water Sewer Collection Total Service CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts from customers 6,792,014$ 11,962,796$ 3,443,349$ 22,198,159$ 662,420$ Cash paid to suppliers for goods and services (3,307,251) (9,056,569) (3,777,196) (16,141,016) (661,776) Cash paid to employees for services (1,624,479) (1,154,059) (13,141) (2,791,679) - Net cash provided by (used in) operating activities 1,860,284 1,752,168 (346,988) 3,265,464 644 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 352,084 228,945 - 581,029 97,500 Transfers out (52,000) (347,530) (10,000) (409,530) - Net cash provided by (used in) noncapital financing activities 300,084 (118,585) (10,000) 171,499 97,500 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Payment on capitaldebt (245,000) (280,000) - (525,000) - Interest paid on capitaldebt (249,195) (539,998) - (789,193) - Acquisition of capitalassets (1,632,153) (1,426,965) 3 (3,059,115) - Contributions from developers and other agencies 10,681 758,725 - 769,406 - Net cash provided by (used in) capitaland related financing activities (2,115,667) (1,488,238) 3 (3,603,902) - CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 28,255 42,987 - 71,242 717 Net cash provided by investing activities 28,255 42,987 - 71,242 717 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 72,956 188,332 (356,985) (95,697) 98,861 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 6,717,716 9,254,433 1,051,841 17,023,990 100,000 CASH AND CASH EQUIVALENTS, END OF YEAR 6,790,672$ 9,442,765$ 694,856$ 16,928,293$ 198,861$ RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES Operating income (loss) 1,763,655$ 1,297,637$ (341,167)$ 2,720,125$ 644$ Adjustments to reconcile operating income (loss) to net cash provided by operating activities: Depreciation 567,128 1,056,956 1,105 1,625,189 - Changes in assets and liabilities: Decrease (increase) in accounts receivable (796,804) (234,973) 800,388 (231,389) - Decrease (increase) in prepaid (5,525) - - (5,525) Increase (decrease) in accounts payable 34,288 (42,395) (752,396) (760,503) - Increase (decrease) in due to other funds 125,130 - - 125,130 - Increase (decrease) in deposits 172,412 (325,057) (54,918) (207,563) - Net cash provided by (used in) operating activities 1,860,284$ 1,752,168$ (346,988)$ 3,265,464$ 644$ NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES: Amortization of premiums (discounts) (2,853)$ 7,612$ -$ 4,759$ -$ Business-type Activities - Enterprise Funds . CITY OF ROHNERT PARK STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2013 See accompanying notes to the basic financial statements. F-24 Total Trust Funds Cash and investments 4,787,879$ Receivables: Accrued interest 86 Deferred Charges 1,269,948 Restricted cash & investments 8,065,562 Advance to successor agency 10,344,225 Nondepreciable capital assets 4,934,146 Depreciable capital assists 14,646,646 Total assets 44,048,492 Accounts payable 24,587 Accrued liabilities 987,823 Advance from successor agency 2,199,675 Long-term debt Due in one year 1,504,363 Due in more than one year 62,038,660 Total liabilities 66,755,108 Total net position (deficit) held in trust (22,706,616)$ ASSETS LIABILITIES NET POSITION CITY OF ROHNERT PARK STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE FISCAL YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. F-25 Total Trust Funds ADDITIONS Taxes 5,381,261$ Interest and rentals 45,450 Donations 66,630 Total additions 5,493,341 DEDUCTIONS Current: Program expenses 2,068,134 Law enforcement costs 16,139 Principal 1,271,453 Interest and fiscal charges 1,153,815 Total deductions 4,509,541 CHANGE IN NET POSITION 983,800 NET POSITION, BEGINNING OF THE YEAR (23,690,416) NET POSITION (DEFICIT), END OF YEAR (22,706,616)$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-26 1. DESCRIPTION OF THE REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES Description of the Reporting Entity - The basic financial statements of the City of Rohnert Park, California (City) include the financial activities of the City (the primary government) and its component unit. The component unit discussed below is included in the City’s reporting entity because of the significance of their operational or financial relationship with the City. The blended component unit, although a legally separate entity, is in substance, part of the City’s operations and so data from these units is combined with data of the primary government. The City’s blended component unit has a June 30 year-end. The Rohnert Park Financing Authority (Financing Authority) is a joint powers authority, organized pursuant to a joint exercise of powers agreement (Agreement), dated as of January 1, 1999, between the City and the Community Development Commission (now the Successor Agency). The Agreement was entered into pursuant to the Government Code of the State of California, commencing with Section 6500. The Financing Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing activities for the benefit of the City and the Commission. The Financing Authority is governed by a board consisting of all the members of the City Council. Component unit financial statements for the Financing Authority can be obtained from the Finance Department of the City at 130 Avram Avenue, Rohnert Park, CA 94928. Description of Joint Powers Participation - The City participates in a joint powers activity through a formally organized and separate entity. The financial activities of the Redwood Empire Municipal Insurance Fund are not included in the basic financial statements of the City as it is administered by a board that is separate from and independent of the City. Basis of Presentation Government-wide Financial Statements - The statement of net position and statement of activities display information about the primary government (City) and its component unit. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City and between the City and its discretely presented component unit. Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business- type activities, which rely to a significant extent on fees charged to external parties. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-27 The statement of activities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are those that are specifically associated with a program or function and therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues. Fund Financial Statements - The fund financial statements provide information about the City’s funds, including fiduciary funds and blended component unit. Separate statements for each fund category –governmental, proprietary and fiduciary – are presented. The operations of each fund are accounted for with a separate set of self- balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds. The City reports the following major governmental funds: General Fund is the general operating fund of the City. It accounts for all financial resources traditionally associated with governments, which are not required to be accounted for in another fund. Housing Projects Special Revenue Fund accounts the activities from the previous Community Development Commission Housing Projects Special Revenue Fund effective February 1, 2012. It is used to account for the restricted or committed revenue and expenditures of a portion of the City’s Low Income Housing activities. Financing Authority Debt Service Fund accounts for capital items financed by certificates of participation. City Capital Projects Fund accounts for resources used for the acquisition of capital facilities, except for those capital facilities financed by enterprise funds, special assessment resources or Community Development Commission resources. Public Facility Finance Fee Fund accounts for the financial activities related to the approved Public Facilities Finance Plan (Facilities Plan). The Facilities Plan’s purpose is to manage the costs of capital facilities, maintenance and services that are impacted by new development. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-28 The City reports the following major enterprise funds: Water Fund accounts for water production to the residents of the City. The activities necessary to provide such service are accounted for in the fund, including, but not limited to, operations, maintenance, financing and related debt service, and billing and collection. Sewer Fund accounts for sewage disposal to the residents of the City. The activities necessary to provide such service are accounted for in the fund, including, but not limited to, operations, maintenance, financing and related debt service, and billing and collection. Refuse Collection Fund accounts for service performed by an independent contractor. The activities necessary to provide such service are accounted for in the fund, including but not limited to contractual services and billing and collection services. The City reports the following additional fund types: Permanent Fund (a governmental fund type)accounts for accumulation of capital donated for the City of Rohnert Park’s Dorothy Rohnert Spreckels Performing Arts Center. The interest generated from the donations will be used for the operations of the Performing Arts Center while the corpus is non-spendable. Internal Service Fund (a proprietary fund type)accounts for the activities of centralized data processing services and the related billings to other City departments and funds. Special Enforcement Unit - South Private-Purpose Trust Fund (a fiduciary fund type)accounts for assets held by the City in a trustee capacity for the benefit of law enforcement agencies in the region. Redevelopment Agency Obligation Retirement Trust Fund is used to account for the assets held for the dissolution of the former RDA. Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the basic financial statements. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. When both restricted and unrestricted net position are available, unrestricted resources are used only after the restricted resources are depleted. The government-wide, proprietary and private-purpose trust fund financial statements are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the statement of net position. Operating statements of these funds present increases (i.e., revenues) and decreases (i.e., expenses) in total net position. Government-wide financial statements are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when they are incurred. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-29 Governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. The City considers property taxes as available if they are levied and collected within 60 days after year-end. The availability period for all other revenues susceptible to accrual is also 60 days. Revenues considered susceptible to accrual include property taxes, sales tax, licenses, interest and rentals, charges for services and intergovernmental revenues. All other revenues are recognized only when the cash receipts are collected. Expenditures are recorded when the related fund liability is incurred, except that principal and interest on long-term debt, compensated absences and claims are recognized when due. Proprietary funds and the private-purpose trust fund are accounted for using the accrual basis of accounting. Revenues are recognized when they are earned and expenses are recognized when they are incurred. Water, sewer and refuse collection service revenues earned at June 30, but unbilled, are recognized. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenues of the City’s enterprise and internal service funds are charges for customer services including: water, sewer and refuse collection, and service support charges. Operating expenses for enterprise funds and internal service funds include the cost of services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Cash and Cash Equivalents - For purposes of the statement of cash flows, the City considers all highly liquid investments with maturity of three months or less when purchased to be cash equivalents. The proprietary funds "deposits" in the City cash and investments pool are, in substance, demand deposits and are therefore considered cash equivalents. Investments – Investment transactions are recorded on the trade date. Investments in nonparticipating interest- earning investment contracts (certificates of deposits and guaranteed investment contracts) are reported at cost, and all other investments are reported at fair value. Fair value is defined as the amount that the City could reasonably expect to receive for an investment in a current sale between a willing buyer and seller and is generally measured by quoted market prices. Transactions with Joint Powers - Premiums paid to the Redwood Empire Municipal Insurance Fund are recorded as expenditures of the General Fund and expenses in the statement of activities. Dividends received are recorded as a reduction of expenditures/expenses. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-30 Bond Discounts, Premiums, Issuance Costs, and Deferred Amounts on Refundings - For governmental fund financial statements, bond premiums and discounts, as well as issuance costs are recognized during the period the bonds are issued. Bonds issued are reported as other financing sources including any applicable premiums. Discounts are reported as a separate financing use. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt service expenditures. For government-wide and proprietary fund financial statements, bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Issuance costs are reported as deferred charges. Gains or losses occurring from advance refunding are deferred and amortized into expense for both business-type activities and proprietary funds. For governmental activities, they are deferred and amortized into expense if they occurred subsequent to June 30, 2001. Bonds payable are reported net of deferred amounts on refundings. Prepaid Items – Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the government-wide and fund financial statements. Capital Assets - are valued at historical cost or, for donated capital assets, at their fair market value on the date donated. Capital assets include public domain (infrastructure) general capital assets consisting of certain improvement including roads, bridges, water/sewer, lighting system, drainage systems, and flood control. The City defines capital assets as assets with an estimated useful life in excess of one year and a value of $5,000 or more. Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the government-wide and proprietary fund financial statements. The estimated useful lives are as follows: Primary Government Infrastructure 30 years Structure and improvements 35 years Furniture, fixtures and equipment 3 – 35 years Accumulated Unpaid Vacation and Sick Pay - It is the policy of the City to permit employees to accumulate earned but unused vacation and sick leave benefits. Vested or accumulated vacation and sick leave are reported as long- term liabilities on the statement of net position. If amounts are due and payable at fiscal year-end, they are recorded as liabilities in the governmental funds. Claims Liabilities - The City has accrued for claim liabilities including estimated claims incurred but not yet reported and related allocated loss adjustment expenses. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-31 Property Tax Levy, Collection and Maximum Rates - The State of California Constitution Article XIIIA provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additional amount for debt or assessments has been approved by voters. Assessed value is calculated at 100% of market value as defined by Article XIIIA and may be increased no more than two percent per year unless the property is sold, transferred or improved. The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, school districts and other districts. Sonoma County assesses properties, bills for and collects property taxes as follows: Secured Unsecured Lien dates January 1 January 1 Levy dates July 1 July 1 Due dates 50% on November 1 July 1 50% on February 1 Delinquent after December 10 (for November) August 31 April10 (for February) The term “unsecured” refers to taxes on personal property other than land and buildings. Secured taxes are secured by liens on the property being taxed. Property tax revenues are recognized in the fiscal year for which the taxes have been levied. Interfund Transactions - Interfund transactions are reflected as loans, services provided, reimbursements or transfers. Loans and residual balances outstanding in the fund financial statements are reported as receivables and payables as appropriate, are subject to elimination upon consolidation and are referred to as either “due to/from other funds” (e.g., the current portion of interfund loans) or “advances to/from other funds” (e.g., the noncurrent portion of interfund loans). Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”. Advances to other funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not available financial resources. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide presentation. Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-32 2.STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Fund Deficits At June 30, 2013, the City Capital Projects fund had a deficit fund balance of ($460,384) due to capital expenditures exceeding its revenues. The deficit will be reimbursed in the future by the developer fees, Assessment District proceeds and State and Federal Grants. In addition, Graton Mitigation Special Enforcement Activity Fund had a deficit fund balance of ($4,919), which will be resolved in fiscal year 13-14 by receipts in excess of expenditures. 3. CASH AND INVESTMENTS The City maintains a cash and investments pool that is available for use by all funds, except the Successor Agency. In addition, cash is separately held by several of the City's funds. Cash and investments are comprised of the following amounts as shown on the Statement of Net Position: Primary government: Unrestricted 43,057,167$ Restricted 21,738,065 Total cash and investments 64,795,232$ Cash and investments as of June 30, 2013 consist of the followings: Deposits with financial institutions 28,019,168$ Investments 36,776,064 64,795,232$ Deposits Custodial Credit Risk Custodial credit risk is the risk that in the event of a bank failure, the government’s deposits may not be returned to it. At June 30, 2013 the carrying value of the City’s deposits and cash on hand was $10,879,741. The City is not exposed to such risks as all deposits are insured or collateralized. Investments Investments permitted by the City’s investment policy include the following: State of California Local Agency Investment Fund (LAIF), Sonoma County Investment Pool, Securities of the United States Government or its agencies, Certificates of deposits with commercial banks, savings & loan companies or credit unions, Negotiable certificates of deposits, Bankers’ acceptances, Mutual funds invested in United States Government securities. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-33 United States Government and agency investments are required to be of the highest rating available at the time of purchase. Certificates of deposit, bankers’ acceptances and savings type accounts must be fully insured or collateralized. Credit risk Credit risk relates to the possibility that an issuer/counterparty to an investment will be unable to fulfill its obligations. The City’s investment policy is to apply the prudent-person rule: Investments are made as a prudent person would be expected to act, with discretion and intelligence, to seek reasonable income, preserve capital, and in general avoid speculative investments. The City’s investment policy includes investments permitted by the California Government Code and limits medium-term negotiable certificates of deposits, bankers’ acceptances and commercial paper invests as follows: Medium-term corporate notes, including bank notes and deposits notes, must be issued by corporations doing business in the United States as outlined in the California Government Code. Issuers must possess an acceptable long-term senior debt rating by two of the nationally recognized rating services; i.e., Moody’s Investors Services, Standard & Poor’s Fitch or Duff & Phelps for maturities of five years or less, a minimum rating of “AAA” or better. Negotiable certificates of deposit must be issued by a federal or state chartered bank or a state saving association or a state licensed, domestic bank of a foreign bank. Issuers must possess an acceptable long- term senior debt rating by two of the nationally recognized rating services; i.e., Moody’s Investors Services, Standard & Poor’s Fitch or Duff & Phelps for maturities of five years or less, a minimum rating of “AAA” or better. Commercial Paper - State law limits investments in commercial paper to be of “prime” quality of the highest ranking of the highest letter and number rating as provided for by a nationally recognized statistical-rating organization (NRSRO). Interest rate risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. The City has an investment policy of lengthening its maturities when rates are falling and shortening its maturities when rates are rising as a means of managing its exposure to fair value losses and to take advantage of advantageous interest rates. The City has about 91% of its investments in maturities of less than 1 year in order to take advantage of anticipated rising interest rates. As of June 30, 2013, the City’s investments consisted of the following: Investment Type Fair Value Less than 1 year 1-3 years More than 3 years Credit Rating Certificates of Deposit 829,021$ 829,021$ -$ -$ Not Rated Certificates of Deposit 199,000 - 199,000 - Not Rated State and LocalAgency Investment Fund 19,244,418 19,244,418 - - Not Rated Sonoma County Investment Pool 1,918,085 - 1,918,085 - Not Rated Money Market Funds 14,585,540 14,585,540 - - AAAm 36,776,064$ 34,658,979$ 2,117,085$ - Maturities CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-34 As of June 30, 2013, the City’s investment in LAIF was $19,224,418, which has a weighted average maturity of 278 days. The total amount invested by all public agencies in LAIF at that date is approximately $21.2 billion. The City’s proportionate share of structured notes and asset-backed securities held by the LAIF was $376,799 or 1.96% of the City’s investment in LAIF. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The value of the pool shares in LAIF that may be withdrawn is determined on an amortized cost basis, which is different from the fair value of the City’s position in the pool. The City’s investment in LAIF is unrated for credit risk. As of June 30, 2013, the City’s investment in the County’s Pool was $1,918,085, which has a weighted average maturity of 1,102 days. The total amount invested by the County’s Pool at that date is approximately $1.5 billion. The County’s Pool is subject to regulatory oversight by the Treasury Oversight Committee. The value of the pool shares in the County Pool that may be withdrawn is determined on an amortized cost basis, which is different from the fair value of the City’s position in the pool. The City’s investment in the County Pool is unrated for credit risk. 4. LOANS AND NOTES RECEIVABLE, NET In August 2003, the City entered into an amendment to a ground lease dated May 29, 2001 with Rohnert Park Golf, L.P. (Tenant), whereby the tenant leases certain property and improvements from the City. The City made a one- time advance totaling $355,000 to the Tenant for the purpose of making improvements to the golf course, and on- going capital contributions to the Tenant as defined in the agreement. At June 30, 2013, the outstanding balance owed to the City was $61,685, and principal payments of the advance are paid in equal monthly installments over 10 years. Interest is earned by the City on the unpaid principal portion at a rate of 5% per annum. The Commission (the former RDA Housing Projects Special Revenue Fund which is now the Housing Project Special Revenue Fund effective February 1, 2012) extends various developer loans, first-time homebuyer loans, and rehabilitation loans to property owners for the rehabilitation and improvements of commercial buildings and residential homes, and other loans for families and individuals of low/moderate income. The Housing Project Special Revenue Fund has a secured interest in the properties for which the loans were made. Management has established an allowance for bad debts in the amount of $2,639,592 based on historical payment history on forgivable loans. This allowance represents 90% of the 1998 First-Time Homebuyers loans ($103,500), 100% of the Sonoma County Rehabilitation loans ($639,742) and 100% of the Sonoma Mountain Business Cluster Loan of $500,000, all of which are forgivable, as well as 100% of the accrued interest on two of the Burbank notes (120 Santa Alicia Drive and 781 East Cotati Avenue) totaling $835,900. Additionally, the Commission has established an allowance of $549,900 related to accrued interest on the Muirfield loan. Interest amounting to $1,815,743 on the Commission’s other loans and notes receivable is reported as deferred revenue in the fund financial statements. On September 13, 2005, the Commission entered into an Affordable Housing and Loan Agreement with Burbank Housing to develop a 56-unit affordable housing project on a City-owned City Hall Drive site. The Commission purchased the site from the City and assisted Burbank with the financing and pre-development costs. Burbank purchased the land from the Commission for $1,335,000 (the amount paid by the Commission to the City for the property). The term of the loan agreement is a non-recourse loan in the amount of $4,015,000, which will accrue interest at the rate of 2% per annum and is deferred for 55 years. Principal and accrued interest totaling $4,629,905 related to this loan is included in loans and notes receivable on the accompanying financial statements. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-35 On May 23, 2006, the Commission entered into an Affordable Housing and Loan Agreement with Vida Nueva Partners for the development of the Vida Nueva Affordable Housing Project, which includes twenty-four (24) very- low income permanent supportive housing units (carrying 55-year affordability restrictions), a community building, laundry facilities, a management office and activity and counseling rooms. The Commission purchased the site from the City at the appraised value of $1,630,000 to be financed over a three-year period beginning in fiscal 2006- 07. The final installment payment from the Commission was paid in the fiscal year. The City’s basis in the land was $390,000. The loan agreement provided for the Commission to loan $1,675,000 to Vida Nueva Partners at an accrued interest rate of 2% per annum, with the principal and accrued interest deferred for 55 years. Principal and accrued interest totaling $1,780,218 related to this loan is included in loans and notes receivable on the accompanying financial statements. Vida Nueva Partners purchased the site from the Commission for $810,000 during the fiscal year ended June 30, 2008. In December 2007, the Commission loaned $500,000, with interest accruing at 3% simple interest per annum, to the Sonoma Mountain Business Cluster (Incubator) to pay a portion of the cost for tenant improvements at the former Agilent site. The loan terms call for continued operation of the incubator, increased occupancy and eventually job creation. The loan provides that as long as the improvements are made as specified in the agreement and continues to operate the Incubator, and is not in default of any terms of the loan, the loan and accrued interest will be forgiven ten years from the date business incubator is open for business. As of June 30, 2013, the Incubator was not in default of any terms of the loan. The Commission has recorded an allowance against the full amount of the loan. On December 12, 2007, the Commission executed a loan agreement to Rainbow-Copeland Creek LLC for improvements to Copeland Creek Apartments (an all senior affordable housing complex) for $1.2 million. The funds were primarily used for energy efficient improvements at the complex. The loan accrues interest at a rate of 1% per annum, with the principal and accrued interest deferred for 55 years, as defined in the agreement. Principal and accrued interest totaling $1,266,609 related to this loan is included in loans and notes receivable on the accompanying financial statements. On January 27, 1998, the Commission entered into a note agreement with Muirfield Apartments for supportive housing for persons with disabilities and low income persons. The note represents an advance of funds by the Commission to Muirfield Apartments for the pre-development and development expenses in the amount of $611,000 accruing 6% per annum, simple interest. Interest shall accrue and be paid concurrently with principal on or before June 30, 2039, but in no event before the maturity date of the Housing Urban Development (HUD) mortgage note. During the term of the Note, Muirfield Apartments may request and the Commission, at its option, may cancel this note or extend the terms of the note. The Commission has recorded an allowance against the accrued interest portion of this loan totaling $549,900 at June 30, 2013. On July 1, 1995, the Commission and Burbank Housing Development Corp. executed a loan agreement in the amount of $260,000. The loan was for pre-development costs for the property at 120 Santa Alicia Drive for residential low income housing. The note accrues 3% per annum simple interest and is to be paid concurrently with principal on or before September 1, 2023. During the term of the Note, Burbank Housing Development may request and the Commission, at its option, may cancel this note or extend the terms of the note. The Commission has recorded an allowance against the accrued interest portion of this loan totaling $154,700 at June 30, 2013. On August 23, 1991, the Commission entered into a non-recourse promissory note in the amount of $390,000 with Burbank Housing Development Corp. for the construction of 50 low income rental housing units at 781 East Cotati Avenue. The note bears interest at 8% simple interest per annum and is due on or before August 23, 2021. During the term of the Note, Burbank Housing Development may request and the Commission, at its option, may cancel this note or extend the terms of the note. The Commission has recorded an allowance against the accrued interest portion of this loan totaling $681,200 at June 30, 2013. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-36 On April 2007, the Commission was awarded $600,000 of funding for an owner occupied rehabilitation loan program through the CalHome program which is administered by California Department of Housing and Community Development (“HCD”). The Sonoma County Community Development Commission (“SCCDC”) was also awarded $600,000 of CalHome funding and will be administering our CalHome program. The loans are deferred payment loans that have a 30 year term with 3% simple interest. As SCCDC request funds, the City draws against the awarded money. As of June 2013, the City recorded $479,112 CalHome loans. 5.DEFERRED REVENUE Governmental funds report deferred revenue in connection with receivables for revenues not considered available to liquidate liabilities of the current period (unavailable). Governmental and enterprise funds also defer revenue recognition in connection with resources that have been received, but not yet earned (unearned). At June 30, 2013, the unavailable and unearned revenues reported were as follows: Unavailable Unearned Total Governmental activities: Major funds: General Fund: Courseco loan receivable 61,684$ -$ 61,684$ Parks and recreation and other advances 170,172 113,335 283,507 RP Refuse contract extension fee 180,000 - 180,000 Housing Projects Fund: Housing loans 1,815,743 - 1,815,743 Total governmental activities 2,227,599$ 113,335$ 2,340,934$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-37 6. ADVANCE (DUE) TO/FROM OTHER FUNDS Advance (Due) To/From - The composition of these balances as of June 30, 2013 was as follows: Fund reporting receivable Fund reporting payable Amount Due to/from other funds: General Fund Supplemental LawEnforcement Services 27,298$ General Fund Water Enterprise Fund 125,123 Graton Mitigation Fund General Fund 1,710 Graton Mitigation Fund Graton Mitigation Special Enforcement Activity 4,919 Graton Mitigation Fund Water Enterprise Fund 7 159,057$ Advances to/from other funds: General Fund RDAObligation Retirement Trust 2,075,000$ General Fund RDAObligation Retirement Trust 124,675 RDAObligation Retirement Trust General Fund 288,500 RDAObligation Retirement Trust Sewer Enterprise Fund 10,055,725 12,543,900$ The General Fund paid for expenditures on behalf of the Supplemental Law Enforcement Services and Water Enterprise Funds in the amounts of $27,298 and 125,123, respectively, which were reimbursed during the next year. The Graton Mitigation Fund paid expenditures on behalf of the General, Graton Mitigation Special Enforcement Activity, and Water Enterprise Funds in the amounts of $1,710, $4,919 and 7, respectively, which were reimbursed during the next year. The RDA Obligation Retirement Trust Fund effective February 1, 2012 purchased the Hazel Wetland Preserve for $288,500, which is to be reimbursed by the General Fund upon the sale of stadium lands. The City’s General Fund advanced $4,200,000 to the RDA Obligation Retirement Trust Fund in order to construct a performing arts center. The loan is being repaid annually through installments payments of principal plus interest from property tax increment. As of June 30, 2013, the General Fund advance is $2,075,000. Another advance in the amount of $124,675 is for the expense paid by General fund until the RPTTF money comes in. On May 22, 2007 (amended August 26, 2008), the RDA Obligation Retirement Trust Fund (former Community Development Commission) entered into a reimbursement agreement with the City whereby the Commission would fund 88% of the project cost of the Eastside Sewer Main Phase 1 Improvement, which is the portion of the project that lies within the project area, in advance of the City receiving the money through public facilities finance fees. The Commission is funding this project from the 2007R Tax Allocation Bond proceeds, and pursuant to the terms of the reimbursement agreement, the maximum amount to be funded by the Commission is $12,144,000. As of June 30, 2013, it had advanced $10,055,725 to the Sewer Fund for this project. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-38 Interfund Transfers - The composition of interfund transfers during the year ended June 30, 2013 was as follows: Fund Reporting Transfer In Fund Reporting Transfer Out Amount GeneralFund Performing Arts Center Endowment 26,224$a Enterprise Fund 10,000 b Nonmajor GovernmentalFunds 915,974 a SpecialRevenue Fund 51,565 a City CapitalProjects Fund 34,955 c 1,038,718 Financing Authority Fund GeneralFund 202,056 d RSA Debt Service Funds 444,161 d 646,217 City CapitalProjects Fund Nonmajor GovernmentalFunds 2,083,745 c Public Facility Finance Fee Fund 419,101 c GeneralFund 255,700 c 2,758,546 Performing Arts Center Endowment City CapitalProjects Fund 2,481 c Nonmajor GovernmentalFunds GeneralFund 105,833 e City CapitalProjects Fund 453,220 c 559,053 Water Enterprise Fund Sewer Enterprise Fund 302,030 g Public Facility Finance Fee Fund 50,054 h 352,084 Sewer Enterprise Fund City CapitalProjects Fund 228,945 c InternalService Fund Water Enterprise Fund 52,000 f Sewer Enterprise Fund 45,500 f 97,500 Total 5,683,544$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-39 The purpose for the interfund transfers during the fiscal year ended June 30, 2013 is as follows: (a) Repay the GeneralFund for programs funded through other sources (b) Reimburse the GeneralFund for staffing cost of Code Enforcement Officer (c) Reimburse the funds for overfunidng capitalprojects (d) These transfers are made for the payment of debt service (e) Reclassfication revenue to specialrevenue fund (f) Contribution made to vehicle replacement fund (g) To correct the CIP balance in each enterprise fund (h) To fund project #1109 DowdellAvenue Extension CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-40 7. CAPITAL ASSETS Capital asset activity for the fiscal year ended June 30, 2013 was as follows: Balance Balance June 30, 2012 Additions Retirements June 30, 2013 Governmental activities Capital assets, not being depreciated; Land 6,906,156$ -$ -$ 6,906,156$ Construction in progress 4,711,818 6,884,998 (281,674) 11,315,142 Totalcapitalassets, not being depreciated 11,617,974 6,884,998 (281,674) 18,221,298 Capital assets, being depreciated Infrastructure, structures and improvements 105,989,163 281,674 (851,620) 105,419,217 Equipment 13,223,487 350,486 (225,605) 13,348,368 Totalcapitalassets, being depreciated 119,212,650 632,160 (1,077,225) 118,767,585 Less accumulated deprecation for: Infrastructure, structures and improvements (60,459,432) (3,859,641) - (64,319,073) Equipment (12,216,689) (605,000) 218,928 (12,602,761) Totalaccumulated depreciation (72,676,121) (4,464,641) 218,928 (76,921,834) Totalcapitalassets, being depreciated, net 46,536,529 (3,832,481) (858,297) 41,845,751 Governmental activities capital assets, net 58,154,503$ 3,052,517$ (1,139,971)$ 60,067,049$ (continued) CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-41 Balance Balance June 30, 2012 Additions Retirements June 30, 2013 Business-type activities Capital assets, not being depreciated Construction in progress 4,641,894$ 2,666,436$ (3,681,234)$ 3,627,096$ Capital assets, being depreciated Structures and improvements 47,350,923 3,681,234 - 51,032,157 Equipment 3,055,707 392,680 - 3,448,387 Totalcapitalassets, being depreciated 50,406,630 4,073,914 - 54,480,544 Less accumulated depreciation for: Structures and improvements (18,510,371) (1,422,209) - (19,932,580) Equipment (1,971,733) (202,980) - (2,174,713) Totalaccumulated depreciation (20,482,104) (1,625,189) - (22,107,293) Totalcapitalassets, being depreciated, net 29,924,526 2,448,725 - 32,373,251 Business-type activities capital assets, net 34,566,420$ 5,115,161$ (3,681,234)$ 36,000,347$ (concluded) CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-42 Construction in progress for governmental activities at June 30, 2013 is comprised of the following: Expended to June 30, 2013 City Projects: Specific Plans Developments 1,530,379$ Water Supply Assessment Project 1,309,647 Rancho Verde Traffic Signal 364,718 Wilfred Widening 3,509,747 Arlen Dr & E. Cotati Ave Overlays 761,805 American Recovery Act 1,428,048 Copeland Crk Bike Path Reconst 968,017 Various Streets Preventative Improvement 919,030 Public Safety Main Roof Replacement 363,800 Various other projects 159,951 11,315,142$ During current year, the City completed governmental activities projects totaling $281,674 that were transferred from construction in progress to improvements. Construction in progress for business-type activities at June 30, 2013 is comprised of the following: Expended to June 30, 2013 Water System Distribution Improvement 161,672$ Water Tank #8 Project 38,890 Sewer Intercepter Phase II 394,588 Eastside Trunk Sewer Phase II 270,493 Alta Ave & Almond Street Rehab 1,566,043 Adrian Water/Sewer Rehab 699,000 Casino Waste Water 324,801 Various other projects 171,610 Total 3,627,096$ The City completed $3,681,234 business-type activities projects during the fiscal year that were transferred from construction in progress to structures and improvements. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-43 Depreciation expense was charged to governmental functions as follows: Generalgovernment 1,618,909$ Public safety 463,340 Public works 1,597,612 Parks and recreation 784,780 Totaldepreciation expense – governmentalfunctions 4,464,641$ Depreciation expense was charged to the business-type functions as follows: Water 567,128$ Sewer 1,056,956 Refuse 1,105 Totaldepreciation expense – business-type functions 1,625,189$ 8. LONG-TERM LIABILITIES The City’s long-term debt payable at June 30, 2013 is as follows: Original Final Interest Annual Issue Outstandingat Maturity Rates Principal Installments Amount June 30, 2013 Governmental Activities (a) 1999 Certificates of Participation: Capital Facilities Project 2025 3.60-5.00% $120,000-330,000 5,055,000$ 3,090,000$ (b) 2003 Lease Revenue Refunding Bonds: Master Equipment Lease Project and Public Safety Facility 2026 2.50-4.80% $24,000-47,000 695,000 474,500 (c) Capital leases 2020 4.43% $71,034-114,839 1,175,965 593,848 Total Governmental Activities 4,158,348 Business-Type Activities (e) 2002 Water Revenue Bonds 2023 2.00-4.50% $80,000-145,000 2,090,000 1,210,000 (d) 2005 Sewer System Revenue Certificates ofParticipation Capital Facilities Project 2036 3.00-5.00% $230,000-775,000 13,000,000 11,210,000 (e) 2005 Water Revenue Bonds 2031 2.50-4.50% $120,000-305,000 5,000,000 3,935,000 Total Business-Type Activities 16,355,000 Total governmental and business-type activities – bonds, certificates of participation, and capital leases.20,513,348$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-44 Debt service payments, as listed in the table above, are generally made from the following sources: (a)General Fund provides for the 1999 Certificates of Participation, as provided for by an agreement between the Financing Authority and the City. (b)General Fund provides 10% of the Lease Revenue Bond, as provided for by an agreement between the Financing Authority and the City. The remaining 90% comes from the RDA Successor Agency. (c)General revenues of the City. (d)75% Utility billing from the Sewer Department and 25% from new development. (e)Utility billing from the Water department. Governmental Activities: 1999 Certificates of Participation On January 15, 1999, the Financing Authority issued the 1999 Certificates of Participation (“1999 COPs”) in the amount of $5,055,000. The 1999 COPs were issued to provide funding for the acquisition by the Financing Authority of the site and improvements for the community center complex. 2003 Lease Revenue Refunding Bonds On July 1, 2003 the Financing Authority issued the Rohnert Park Financing Authority Lease, Series 2003 (“2003 LRBs”) to refinance the Refunding Certificates of Participation (Rohnert Park Public Safety Facility Project-the Series 1994 Certificates) outstanding principal amount of $5,780,000 and the Certificates of Participation (Master Equipment Lease Program- Series 1999 Certificates) outstanding principal balance of $785,000, and to provide for deposit of a surety bond in a reserve fund and to pay certain costs of issuance. The 2003 LRBs are payable from and secured by base rental payments to be made by the City under the lease between the City and the Financing Authority for the lease of the Department of Public Safety Main Station, which houses the City’s Department of Safety which provides police and fire services in the City. The pledge of future revenues ends upon final payment scheduled to occur in 2026. In fiscal year 2013, revenues pledged totaled $497,176 and the required debt service was $492,704. Business-Type Activities: 2005 Sewer System Revenue Certificates of Participation On May 27, 2005, the City entered into an installment sale agreement with the Rohnert Park Financing Authority for Sewer System Revenue Certificates of Participation, Series 2005 (Certificates) in the amount of $13,000,000. Proceeds of the Certificates are being used for a) financing certain improvements, betterments, renovations and expansions of facilities within the Sewer System of the City b) paying capitalized interest with respect to the Certificates to June 1, 2006, c) providing for the deposit of a reserve fund surety bond and d) paying costs of delivery of the Certificates. The Certificates will mature in the year 2036 and carry interest rates ranging from 3.00% - 5.00%. There is a sufficient cash reserve in the sewer fund of $2.8 million to cover both the operating expenses and debt service of $817,205 for fiscal year 2013. The City reviewed sewer rates and determine what rate increases are necessary to maintain the systems and provide sufficient reserves. The City also formed a stakeholder group consisting of sixteen community members to assist the City with the task of increasing the sewer rates to a sufficient base to cover sewer operations. The new sewer rates were implemented July 1, 2011. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-45 2002 and 2005 California Statewide Communities Development Authority Water Revenue Bonds In October 2002, the City became a program participant in the California Statewide Communities Development Authority Water and Wastewater Pooled Financing Program (Program). As a participant in the Program, the City was able to issue California Statewide Communities Development Authority (Authority) Water Revenue Bonds. The 2002 Water Revenue Bonds were authorized and issued by the California Statewide Communities Development Authority on behalf of the City in the amount of $2,090,000. The proceeds are to be used for water improvement projects. System net revenues, as defined in the agreement, are irrevocably pledged for the debt service payments until maturity. On May 1, 2005, the City issued Series 2005A (Bonds) in the amount of $5,000,000 under the program. Proceeds of the Bonds were used to finance the acquisition and construction of water and wastewater public capital improvements The Bonds will mature in 2031 and carry interest rates form 2.5% to 4.5%. The City entered into an Installment Purchase Agreement with the Authority that provides that all system net revenues are pledged to the payment of the installment payments until maturity. In fiscal year 2013, system net revenues available to fund the 2002 and 2005 Water Revenue Bonds totaled $403,731 and debt service was $467,951. The following is a summary of changes to long-term liabilities for the year ended June 30, 2013: Amount due Balance Additions/ Balance Within One July 1, 2012 Accretions Retirements June 30, 2013 Year Governmental activities: Certificates of participation 3,280,000$ -$ 190,000$ 3,090,000$ 195,000$ Lease revenue refunding bonds 501,500 - 27,000 474,500 28,000 Capital leases 704,953 - 111,105 593,848 79,354 Total long-term debt 4,486,453 -328,105 4,158,348 302,354 Original issue discount (36,369) - (34,964) (1,405) (130) Compensated absences 1,410,831 1,188,018 1,149,746 1,449,103 1,149,746 Total governmental activities LT debt 5,860,915$ 1,188,018$ 1,442,887$ 5,606,046$ 1,451,970$ Business-type activities: Water revenue bonds 5,390,000$ -$ 245,000$ 5,145,000$ 255,000$ Sewer revenue certificates of participation 11,490,000 - 280,000 11,210,000 295,000 Original issue premium 182,050 - 7,612 174,438 7,612 Original issue discount (47,611) - (2,853) (44,758) (2,854) Total business-type activities LT debt 17,014,439$ -$ 529,759$ 16,484,680$ 554,758$ For governmental activities, compensated absences are generally liquidated by the General Fund. The Lease Revenue Refunding Bonds presented reflect the City’s portion of 10%. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-46 Future debt service requirements (principal and interest) for governmental activities are as follows: Principal Interest Principal Interest 2014 195,000$ 148,318$ 28,000$ 20,833$ 2015 205,000 139,215 29,000 19,753 2016 215,000 129,125 30,500 18,582 2017 225,000 118,125 31,500 17,326 2018 235,000 106,625 33,000 15,999 2019 – 2023 1,370,000 338,750 187,500 55,136 2024 – 2027 645,000 32,625 135,000 9,809 Total 3,090,000$ 1,012,783$ 474,500$ 157,438$ June 30: Fiscal Year Certificates of Participation Lease Revenue Bonds Ending Future debt service requirements (principal and interest) for business-type activities are as follows: Sewer Revenue Certificates of Participation Principal Interest Principal Interest 2014 255,000$ 214,401$ 295,000$ 522,205$ 2015 265,000 205,179 305,000 511,518 2016 275,000 195,034 315,000 500,143 2017 285,000 183,999 325,000 487,888 2018 290,000 172,499 340,000 475,138 2019– 2023 1,665,000 659,601 1,930,000 2,153,263 2024 – 2028 1,230,000 339,978 2,415,000 1,655,625 2029 – 2033 880,000 60,525 3,065,000 1,006,000 2034 – 2036 - - 2,220,000 220,375 Total 5,145,000$ 2,031,216$ 11,210,000$ 7,532,155$ Fiscal Year ending Water Revenue Bonds June 30: Legal Debt Limit As of June 30, 2013, the City’s legal debt limit (15% of valuation subject to taxation) was $542,024,000. As of June 30, 2013, the City has no debt subject to the debt limit. Arbitrage The Tax Reform Act of 1986 instituted certain arbitrage restrictions with respect to the issuance of tax-exempt bonds after August 31, 1986. Arbitrage regulations deal with the investment of all tax-exempt bond proceeds at an interest yield greater than the interest yield paid to bondholders. Generally, all interest paid to bondholders can be retroactively rendered taxable if applicable rebates are not reported and paid to the Internal Revenue Service (IRS) at least every five years. During the current year, Willdan Financial Services performed calculations of excess investment earnings on various bonds and financings and at June 30, 2013, the City has no liability. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-47 Conduit Debt The City has issued a Multifamily Housing Revenue Bond and four Mobile Home Park Revenue Bonds to provide funds to builders for the construction of a multifamily housing project and two mobile home park projects. The bonds are payable solely from the revenue collected by the builders of the projects. The City is not obligated in any manner for repayment of the indebtedness. Accordingly, the liabilities are not reported in the City’s basic financial statements. The 2001 Series A and B (Las Casitas De Sonoma) were paid off during the year. The aggregate principal amount payable for the two series of bonds as of June 30, 2013 is as follows: Mobile Home Park Revenue Bonds Series 2003A (Rancho Feliz MHP) $11,670,000 Mobile Home Park Revenue Bonds Series 2003B (Rancho Feliz MHP) $3,155,000 Capital Leases The City has entered into a long-term capital lease agreement with a financing agency to lease public safety patrol and fire protection vehicles and other equipment. The following is a summary of future minimum lease payments as of June 30, 2013: Principal Interest 2014 79,354$ 24,715$ 2015 83,989 21,106 2016 88,876 17,287 2017 98,502 13,205 2018 108,706 8,588 2019-2023 134,421 3,757 Total 593,848$88,658$ Fiscal Year ending June 30: Payment for capital lease obligations are made from various revenue sources recorded in the General Fund and transferred to another fund for debt service payment. At June 30, 2013, equipment under the capital leases of $3,527,991 is included in the statement of net position. 9. EMPLOYEES' RETIREMENT PLAN Plan Description – All permanent employees are eligible to participate in the Public Employees’ Retirement Fund (the Fund) of the State of California’s Public Employees Retirement System (CALPERS). The Fund is an agent multiple-employer defined benefit plan that acts as a common investment and administrative agent for various local and state governmental agencies within the State of California. However, the Fund is pooled for the City’s safety employees, therefore the safety plan is considered a cost-sharing plan from the City’s perspective. The Fund provides retirement, disability, and death benefits based on the employee’s years of service, age and final compensation. Employees vest after five years of service and may receive retirement benefits at age fifty. These benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the Fund’s annual financial report may be obtained from CALPERS’ executive office: 400 P. Street, Sacramento, CA 95814. A separate report for the City’s plan within the Fund is not available. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-48 Funding Policy – Effective August 1, 2011 the employees contribute 100% of the required members contribution, safety (9%) and miscellaneous first/second tier (8%) and miscellaneous third tier (7%) of their annual covered salary to the Fund. The City is required to contribute at an actuarially determined rate. The actuarial methods and assumptions used are those adopted by the Fund’s Board of Administration. The required employer contribution rates for fiscal year ended June 30, 2013 were 44.552% for safety employees and 24.554% for miscellaneous employees of annual covered payroll. The contribution requirements of the plan members are established by State statute and the employer contribution rate is established and may be amended by CalPERS. Annual Pension Cost – The City’s annual pension cost for the Fund was equal to the City’s required and actual contributions, which was determined as part of the June 30, 2010 actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses) and (b) projected salary increases from 3.55% to 14.45% depending on age, service and type of employment. Both (a) and (b) include an inflation component of 3%. Initial unfunded liabilities are amortized over a closed period that depends on the plan’s date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20-year period. Gains and losses that occur in the operation of the plan are amortized over a 30-year rolling period, which results in an amortization of about 6% of unamortized gains and losses each year. The actuarial value of City’s assets was determined using a 15 year smoothed market technique. Schedule of Employer Contributions Safety Plan (Cost-Sharing Multiple-Employer Plan) (dollar amounts in thousands) Fiscal Required Percentage Year Contributions Contributed 6/30/11 2,202$ 100 6/30/12 2,192 100 6/30/13 2,216 100 Schedule of Employer Contributions Miscellaneous Plan (Agent Multiple-Employer Plan) (dollar amounts in thousands) Fiscal Annual Percentage of Net Pension Year Ended Cost (APC)APC Obligation 6/30/11 1,163$ 100 - 6/30/12 1,356 100 - 6/30/13 1,498 100 - CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-49 Funded Status of Plan-Miscellaneous Employees (dollar amounts in thousands): (B) (C) (F) Entry Unfunded Unfunded (A) Age Actuarial (D) ActuarialLiability Actuarial Actuarial Actuarial Accrued Funded (E) as Percentage of Valuation Asset Accrued Liability Ratio Covered Covered Payroll Date Value Liability [(B) – (A)] [(A) / (B)] Payroll [(C)/(E)] 6/30/12 56,812$ 69,160$ 12,348$ 82.1% 6,420$ 192.3% The PERS schedule of funding progress in the Required Supplementary Information section following the notes to the financial statements presents multi-year trend information. 10.POST EMPLOYMENT HEALTH CARE BENEFITS Plan Description During the fiscal year ended June 30, 2009, the City implemented GASB Statement No. 45,Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. This statement establishes uniform financial reporting standards for employers providing postemployment benefits. The provisions of this statement are applied on a prospective basis. The City’s single employer defined benefit postemployment healthcare plan (OPEB Plan) provides health insurance benefits under the Anthem Blue Cross, the Hartford, or Kaiser health plans to eligible retirees and dependents in accordance with various labor agreements. Employees are eligible for retiree health benefits and life insurance benefits if they retire from the City on or after age 50 (unless disabled) and are eligible for a PERS pension. Employees hired after June 30, 2007 are under a defined contribution plan which is funded monthly and are not eligible to continue coverage under the City’s health plans and thus are not included in the OPEB calculation. Funding Policy At the May 10, 2011 budget work session, the City Council directed staff to adopt a 20-year phase-in plan to set aside monies in the General Fund. To fund its OPEB obligations, the City entered into an agreement with California Pubic Employer Retiree System (CalPERS) to provide California Employer’s Retiree Benefit trust (CERBT) services starting June of 2011. The Water and Sewer components are funding the full annual required contributions. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-50 Benefits to retirees $12,840 per retiree for the fiscal year ended June 30, 2013 (a total of $1,415,358, including implied subsidy amounts) for the year. The City’s annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount which was determined as part of a July 1, 2011 actuarial valuation and updated to July 1, 2012 in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The City has elected to amortize the unfunded actuarial accrued liability over 30 years from July 1, 2010 using a level dollar, closed amortization period. The ARC is subject to change with each actuarial valuation performed every two years. The City has calculated and recorded the net OPEB obligation, representing the difference between the ARC, amortization and contributions, as follows (in thousands): Annual required Contributions (ARC) 3,610$ Interest on beginning net OPEB Obligation 321 Adjustment to ARC * (498) Total OPEB Cost 3,433 Contributions made by the City (2,016) Increase in net OPEB Obligation 1,417 Net OPEB obligations, beginning of the year 8,247 Net OPEB obligations, end of the year 9,664$ * Adjustment reflects a reduction of $74,000 for 2011-12 contribution and revision to ARC. Net OPEB Obligation is allocated across the governmental and enterprise funds based on their proportionate current retiree healthcare expenses. The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for fiscal year 2013 and the two preceding years were as follows (in thousands): Fiscal Percentage of Net Year Annual Benefit Payments Annual OPEB OPEB Ended OPEB Cost Contributions Made Cost Contributed Obligation 06/30/11 3,775$ 1,612$ 42.60% 7,930$ 06/30/12 2,492 2,174 87.24% 8,247 06/30/13 3,433 2,016 58.72% 9,664 The funded status of the OPEB Plan as of June 30, 2013 (the latest plan valuation date) is as follows (in thousands): Actuarial ValuationDate Actuarial Valuation of Assets (a) Actuarial Accrued Liability(AAL) (b) Unfunded (Overfunded) AAL (UAAL) (b)-(a) Funded Ration (a)/(b) Covered Payroll UAAL as a Percentage ofCovered Payroll [(b)-(a)/( c )] 7/1/2012 1,654$ 41,857$ 40,203$ 3.95% 14,299$ 281.16% CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-51 The OPEB schedule of funding progress in the Required Supplementary Information section following the notes to the financial statements presents multi-year trend information. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive plan as understood by the employer and plan members, and include the types of plan benefits provided at the time of the valuation and the historical pattern of sharing benefit costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations. The actuarial cost method used for determining the Actuarial Accrued Liability (AAL) is the Entry Age Normal Cost Method. The actuarial assumptions used in calculating the fiscal year 2012/13 Annual Required Contribution (ARC) include a 6.5 percent prefunding discount rate and 4.0 percent pay-as-you-go discount rate, covered payroll increases of 3.25 percent per year, an inflation rate of 3.0 percent per year, and a medical increase trend rate starting at 8.5 percent per year, and decreasing gradually over a 7 year period to an ultimate rate of 5.75 percent per year. The economic assumptions used in calculating the 6/30/13 funded status are the same except that the medical increase rates are 8.5% decreasing gradually to the ultimate rate of 5.75% In calculating the 201/13 Annual Required Contribution (ARC), unfunded actuarial accrued liabilities (UAAL) are being amortized as a level dollar amount over a closed 26 year period. Funded Status and Funding Progress Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about investment return, future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents three-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for plan benefits. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-52 11. FUND BALANCE / NET POSITION Fund balance is classified in accordance with GASB issued Statement No. 54, which classifies fund balance into five different components. The components are nonspendable, restricted, committed, assigned and unassigned. Nonspendable resources are not in spendable form or required to be maintained intact such as an endowment. Restricted resources are subject to externally enforceable legal restrictions or imposed by law through constitutional provisions or enabling legislation. Committed resources reflect amounts that can only be used for specific purposes pursuant to constraints imposed by a formal action of the entity’s “highest level of decision making authority,” which would be by an ordinance passed by the City Council. The constraint remains binding unless modified or rescinded in the same formal manner by the City Council. Assigned resources are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. Per GASB 54, the lowest level of constraint for capital project funds is the assigned classification. The unassigned classification is to be used when there are negative residual resources in excess of what can be properly classified as nonspendable, restricted, committed or assigned. When expenditures are incurred for purposes for which both restricted and unrestricted (committed, assigned, or unassigned) fund balances are available, the city’s practice is to first apply restricted fund balance. When expenditures are incurred for purposes for which committed, assigned or unassigned fund balances are available, the City’s practice is to first apply committed fund balance. It is at the discretion of the Council’s designee to then apply the remaining expenditures to assigned or unassigned fund balance. The Finance Director has the authority to assign fund balance amounts where the City’s intent is for those amounts to be used for specific purposes. This delegation of authority is for the sole purpose of reporting these amounts in the annual financial statements. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-53 Portions of unassigned fund balance may be assigned to indicate tentative plans for financial resource utilization in a future period, such as for special purpose or capital projects. Such plans or intent are subject to change, have not been legally authorized and may not result in expenditures. As of June 30, 2013, nonspendable, restricted, committed and assigned fund balances were as follows: Total Housing Projects Financing City Capital Public Facility Other Governmental General Special Revenue Authority Projects Finance Fee Governmental Funds Nonspendable: Advances 2,075,000$ 9,415,272$ -$ -$ -$ -$ 11,490,272$ Prepaid and other assets 583,228 - - - - - 583,228 Notes Receivable 61,685 - - - - - 61,685 Performing Arts Center Endowment -----1,198,388 1,198,388 Total nonspendable 2,719,913 9,415,272 ---1,198,388 13,333,573 Restricted for: Housing programs 80,196 - - - - - 80,196 Street projects - - - - - 2,123,054 2,123,054 Community Development Projects 11,935,256 ----11,935,256 Capital projects - - 493,314 13,083,115 1,534,501 15,110,930 Technology - - - - - 222,139 222,139 Donations 165,881 - - - - - 165,881 Traffic Safety 365,855 - - - - - 365,855 Animal Shelter 123,114 - - - - - 123,114 Public Safety 126,135 - - - - 31,894 158,029 Vehicle Abatement 300,155 - - - - - 300,155 Refundable Deposits 825,608 - - - - - 825,608 Other purpose 54,181 - - - - 10,467 64,648 2,041,125 11,935,256 493,314 - 13,083,115 3,922,056 31,474,866 Committed for: Casino Mitigation - - - - - 2,604,735 2,604,735 - - - - - 2,604,735 2,604,735 Assigned for: Capital projects 616,000 - - - - - 616,000 Carryover of appropriations 154,660 - - - - - 154,660 Claims liability 1,320,444 - - - - - 1,320,444 OPEB Obligation 300,000 - - - - - 300,000 2,391,104 - - - - - 2,391,104 - - - - - Unassigned 4,100,959 - - (460,384) - (4,919) 3,635,656 Total fund balance 11,253,101$ 21,350,528$ 493,314$ (460,384)$ 13,083,115$ 7,720,260$ 53,439,934$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-54 In government-wide statements equity is classified as net position and displayed in three components: Net investment in capital assets – consists of capital assets including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. Restricted net position – consists of net position with constraints placed on the use either by: 1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or 2) law through constitutional provisions or enabling legislation. Unrestricted net position – all other net position that do not meet the definition of “restricted” or “invested in capital assets, net of related debt.” 12. RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The City reports all of its risk management activities in its General Fund. The City participates in the Redwood Empire Municipal Insurance Fund (REMIF), a joint powers agency (risk-sharing pool) established in May 1976 to provide an independently managed self-insurance program for member cities. The purpose of REMIF is to spread the adverse effect of losses among the member agencies and to purchase excess insurance as a group, thereby reducing its costs. The City’s deductibles and maximum coverage follows: Excess Coverage: Deductible REMIF Coverage General liability 5,000$ 500,000$ 39,500,000$ Workers’ compensation 5,000 1,000,000 Statutory Property damage 5,000 25,000 300,000,000 Automobile liability 5,000 10,000 39,500,000 Earthquake and flood 100,000 - 40,000,000 Fidelity 5,000 25,000 2,000,000 The City contributes its pro-rata share of anticipated losses to a pool administered by REMIF. Should actual losses among participants be greater than the anticipated losses, the City will be assessed its pro-rata share of that deficiency. Conversely, if the actual losses are less than anticipated, the City will be refunded its pro-rata share of the excess. The City paid insurance premiums and deductibles of $1,173,813 and received REMIF refunds of $50,332 during the year ended June 30, 2013. Settled claims have not exceeded commercial excess liability coverage in any of the past three fiscal years. Claims expenditures and liabilities are reported for self-insured deductibles when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. These losses include an estimate of claims that have been incurred but not reported (IBNR). At June 30, 2013 the amount of these IBNR liabilities was $43,364. This liability is the City's best estimate based on available information. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-55 Changes in the reported liability resulted from the following: Liability at June 30, 2011 (reported in accrued liabilities) 94,013$ Current year claim deductibles and changes in estimates 158,351 Net payments (190,395) Liability at June 30, 2012 (reported in accrued liabilities) 61,969 Current year claim deductibles and changes in estimates 119,131 Net payments (63,458) Liability at June 30, 2013 (reported in accrued liabilities) 117,642$ At June 30, 2013, management assigned $1,320,444 of fund balance in the General Fund for future claims liabilities. 13. COMMITMENTS AND CONTINGENCIES The city is directly and indirectly involved in various suits relating principally to claims arising from construction contracts, personal injury, and property damage. In the opinion of the City Attorney and City Management, potential claims against the City resulting from such litigation, not covered by insurance, would not materially affect the basic financial statements of the City. As a result, no liability has been accrued by the City relating to these environment matters as of June 30, 2013. The City participates in several State grant programs. These programs have been audited by the City’s independent auditors when required, in accordance with the applicable State requirements. No cost disallowances were proposed as a result of these audits; however, these programs are still subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. The City has an agreement with a private party for the purchase of certain vacant parcels known as the Stadium Lands under an Option to Purchase and Purchase Agreement dated April 8, 2003. To date the City has received $2.6 million in accordance with the agreement. The private party has terminated the option on one parcel and indicates they wish to exercise their option on two parcels. The City is currently discussing the details of the closing with the private party. Depending on the terms of the closing, the City may realize a gain or loss of up to $300,000. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-56 14. LEASES The City has entered into an operating lease contract whereby the City leases golf courses to a third party. The lease commenced July 1, 2012. The term of the lease is for twenty years, with an optional extension of ten years. The future minimum rentals to be received from the aforementioned operating lease as of June 30, 2013 are as follows (in thousands): Fiscal Year Ending June 30, 2014 75,524$ 2015 77,685 2016 80,511 2017 83,410 2018 86,384 2019-2023 479,321 2024-2028 566,183 2029-2032 523,428 1,972,446$ 15. RESTATEMENT TO PRIOR PERIOD BALANCES The City determined that $342,359 was incorrectly reported in the General Fund as a liability. The past practice was that this account was for "set aside" future dental insurance premiums and thus the amount was not an actual liability. As such, the beginning General fund balance and the beginning net position as of July 1, 2012 were restated to reflect that adjustment. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-57 16. SUCCESSOR AGENCY TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY Effective January 31, 2012, all Redevelopment Agencies in California were dissolved. Certain assets of the former Redevelopment Agency Low and Moderate Income Housing Fund were distributed to a Housing Successor; and all remaining former Redevelopment Agency assets and liabilities were distributed to the Successor Agency. A.Successor Agency Cash and Investments Cash and investments as of June 30, 2013 are classified in the accompany financial statements as follows Statement of fiduciary net position: Cash and investments 4,630,111$ Cash and investments - restricted 8,065,562 Total cash and investment 12,695,673$ Cash and investments as of June 30, 2013 consist of the following: Deposit with financial institutions 4,630,111$ Investments 8,065,562 Total cash and investment 12,695,673$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-58 B. Successor Agency Capital Assets The Successor Agency’s capital assets as of June 30, 2013 as follows: Balance Balance June 30, 2012 Additions Retirements June 30, 2013 Capital assets, not being depreciated; Land 4,934,146$ -$ -$ 4,934,146$ Totalcapitalassets, not being depreciated 4,934,146 - - 4,934,146 Capital assets, being depreciated Infrastructure, structures and improvements 29,702,695 - - 29,702,695 Equipment 805,264 - - 805,264 Totalcapitalassets, being depreciated 30,507,959 - - 30,507,959 Less accumulated deprecation for: Infrastructure, structures and improvements (13,937,439) (1,118,610) - (15,056,049) Equipment (805,264) - - (805,264) Totalaccumulated depreciation (14,742,703) (1,118,610) - (15,861,313) Totalcapitalassets, being depreciated, net 15,765,256 (1,118,610) - 14,646,646 capital assets, net 20,699,402$ (1,118,610)$ - 19,580,792$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-59 E. Successor Agency Long-Term Debt The Successor Agency’s long-term debt payable at June 30, 2013 as follows: Original Final Interest Annual Issue Outstanding at Maturity Rates Principal Installments Amount June 30, 2013 Redevelopment Project (includes accreted interest) - 1999 2036 3.60-5.30% 154,386 - 553,597 11,936,651 16,297,023$ Master Equipment Lease Project and Public Safety Facility - 2003 2026 2.50-4.80% 216,000 - 423,000 6,255,000 4,270,500 Redevelopment Project - 2001 2021 3.50-5.25% 55,000 - 810,000 8,200,000 5,940,000 Redevelopment Project - 2007R 2038 3.60 - 5.00% 290,000 - 3,465,000 34,680,000 20,395,000 Housing - 2007H 2038 3.50 - 5.00% 25,000 - 1,790,000 26,760,000 15,880,000 Total 62,782,523$ 1999 Tax Allocation Bonds On January 15, 1999, the former CDC issued Tax Allocation Bonds, Series 1999 (“1999 TABs”) in the amount of $11,936,651. The 1999 TABs were issued for the purpose of funding certain capital improvements, to fund a reserve fund and to pay the costs of issuing the Series 1999 Bonds. The 1991 TABs are limited obligations of the CDC payable from and secured by tax revenues to be derived from the project area. The pledge of future revenues ends upon final payment scheduled to occur in 2036. 2001 Tax Allocation Bonds On September 25, 2001, the former CDC issued the Rohnert Park Redevelopment Project Tax Allocation Refunding Bonds, Series 2001 (“2001 TABs”) for the purpose of refunding a portion of the CDC’s outstanding Series 1991 Bonds, funding certain capital improvements, funding a reserve fund and paying the issuance costs. The 2001 TABs are limited obligation bonds of the CDC payable from and secured by a portion of tax increment revenues. The pledge of future revenues ends upon final payment scheduled to occur in 2021. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bond, with no distinction between housing and non-housing revenues 2003 Lease Revenue Refunding Bonds On July 1, 2003 the Financing Authority issued the Rohnert Park Financing Authority Lease, Series 2003 (“2003 LRBs”) to refinance the Refunding Certificates of Participation (Rohnert Park Public Safety Facility Project-the Series 1994 Certificates) outstanding principal amount of $5,780,000 and the Certificates of Participation (Master Equipment Lease Program- Series 1999 Certificates) outstanding principal balance of $785,000, and to provide for deposit of a surety bond in a reserve fund and to pay certain costs of issuance. The 2003 LRBs are payable from and secured by base rental payments to be made by the City under the lease between the City and the Financing Authority for the lease of the Department of Public Safety Main Station, which houses the City’s Department of Safety which provides police and fire services in the City. The pledge of future revenues ends upon final payment scheduled to occur in 2025. In fiscal 2013, revenues pledged totaled $493,512 and the required debt service was $488,373. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-60 2007 Tax Allocation Bonds On March 28, 2007 the former CDC issued the Rohnert Park Redevelopment Project Tax Allocation Bonds, Series 2007R (“2007 Redevelopment Project Bonds”) in the amount of $34,680,000, and the Rohnert Park Redevelopment Project Housing Tax Allocation Bonds (“2007 Housing Bonds”) in the amount of $26,760,000, for the purpose of financing certain public improvements, including certain housing projects, purchasing municipal bond debt service reserve fund policies in order to satisfy the reserve requirements for the respective reserve accounts, and paying the costs of issuing the bonds. The 2007 Redevelopment Project Bonds are special obligations of the CDC payable from and secured by tax revenues. The pledge of future revenues ends upon final payment scheduled to occur in 2038 for both of the 2007 Tax Allocation Bonds. Based on a recent analysis of the future housing project needs, the Commission determined that there were surplus bond proceeds. On June 18, 2009, the Commission tendered $9,630,000 of a 2037 Housing Term Bond, with $450,000 remaining outstanding. In June 2010, the Commission defeased $12,375,000 of the 2007 Redevelopment Project Tax Allocation Bonds. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bond, with no distinction between housing and non-housing revenues In fiscal year 2013, pledged revenues for the 1999 TABs, 2001 TABs, and 2007 Redevelopment Project Bonds totaled $2,325,287, and required debt service was $2,325,287, as follows: 1999 TABs - $395,000; 2001 TABs - $956,368 and 2007 Redevelopment Project Bonds - $973,919. The 2007 Housing Bonds are special obligations of the CDC and payable from and secured by the housing set-aside amount. Revenues pledged in fiscal year 2013 for the 2007 Housing Bonds were $853,281, and the required debt service was $853,281. With the dissolution of the Redevelopment Agency discussed above, Tax Increment is no longer distributed, and instead the Successor Agency receives payments from the County’s Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to fund debt service on the Bond, with no distinction between housing and non-housing revenues Amount due Balance Additions/ Balance WithinOne June 30, 2012 Accretions Retirements June 30, 2013 Year Lease revenue refundingbonds 4,513,500$ -$ 243,000$ 4,270,500$ 252,000$ Taxallocation bonds 50,950,999 - 1,028,453 49,922,546 1,051,007 Accretedinterest oncapital appreciation bonds 7,799,039 790,438 - 8,589,477 198,993 Total long-term debt 63,263,538 790,438 1,271,453 62,782,523 1,502,000 Original issue premium 1,181,611 - 30,330 1,151,281 30,330 Original issue discount (319,011) (19,462) (8,308) (330,165) (8,308) Deferredamount on refunding (80,275) - (19,659) (60,616) (19,659) Total 64,045,863$ 770,976$ 1,273,816$ 63,543,023$ 1,504,363$ CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-61 Debt Service Requirement Future debt service requirements for the outstanding long-term debt are as follows: Principal Interest Principal Interest Accreted Interest 2014 252,000$ 187,499$ 1,051,007$ 1,929,727$ 198,993$ 2015 261,000 177,780 1,073,944 1,892,713 211,056 2016 274,500 167,234 1,988,682 1,831,150 221,318 2017 283,500 155,932 2,163,830 1,747,225 231,170 2018 297,000 143,994 2,439,386 1,650,325 240,614 2019– 2023 1,687,500 496,221 11,312,763 6,868,990 4,242,237 2024 – 2028 1,215,000 88,279 11,053,292 4,992,012 6,536,708 2029 – 2033 - - 9,925,758 2,833,423 7,059,242 2034 – 2038 - - 8,913,884 1,220,595 4,441,115 Total 4,270,500$ 1,416,939$ 49,922,546$ 24,966,160$23,382,453$ Fiscal Year ending Lease Revenue Bonds June 30: Tax Allocation Bonds 17.EXCESS EXPENDITURES OVER APPROPRIATIONS The following governmental funds had an excess of expenditures over appropriations: Major Fund: Housing Projects Special Revenue Fund in the amount of $1,312,110, which was unbudgeted and covered by current year revenues. Non-major Funds: State Gasoline Tax Special Revenue Fund in the amount of $19,855, which was unbudgeted and covered by current year revenues. Graton Mitigation Special Revenue Fund in the amount of $18,174, which was unbudgeted and covered by existing fund balance. Graton Mitigation Special Enforcement Activity Special Revenue Fund in the amount of $4,919 which was unbudgeted. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-62 17.NEW GASB PRONOUNCEMENTS Implementation of New Pronouncements The City has adopted the following statements issued by the Governmental Accounting Standards Board (GASB) Statements during the fiscal year ended June 30, 2013: GASB Statement No 62 In December 2010, GASB issued Statement No. 62,Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, effective in fiscal year 2012-2013. This statement incorporates certain accounting and financing reporting guidance into GASB’s authoritative literature, included in the following pronouncements issued on or before November 30, 1989, which does not conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations Accounting Principles Board Opinions Accounting Research Bulletins of the American Institute of Certified Public Accountants’ (AICPA) Committee on Accounting Procedure This Statement also supersedes GASB Statement No. 20,Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, eliminating the election for enterprise funds and business-type activities to apply post-November 30, 1989, FASB statements and interpretations that do not conflict with or contradict GASB pronouncements. However, governments can apply post-November 30, 1989, FASB pronouncements that do not conflict with or contradict GASB pronouncements. The requirements of this Statement are effective for financial statements for periods beginning after December 15, 2011. The City has implemented the provisions of this Statement as of June 30, 2013, which did not have any significant impact on the financial statements. GASB Statement No. 63 In June 2011, GASB issued Statement No. 63,Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position.This Statement provides financial reporting guidance for deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4,Elements of Financial Statements, introduced and defined those elements as a consumption of net position by the government that is applicable to a future reporting period, and an acquisition of net position by the government that is applicable to a future reporting period, respectively. Previous financial reporting standards do not include guidance for reporting those financial statement elements, which are distinct from assets and liabilities. The provisions of Statement 63 are effective for financial statements for periods beginning after December 15, 2011. The City has implemented the provisions of this Statement as of June 30, 2013. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-63 New Pronouncements Effective in the Future The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements: Statement No. 65 In March 2012, GASB issued Statement No. 65,Items Previously Reported as Assets and Liabilities.This Statement establishes accounting and financial reporting standards that reclassify as deferred outflows of resources and deferred inflows of resources, certain items that were previously reported as assets and liabilities and recognized as outflows of resources or inflows of resources, certain items that were previously reported as assets and liabilities. The provisions of Statement 65 are effective for financial statements for periods beginning after December 15, 2012, with earlier application encouraged. The City has not determined its effect on the financial statements. Statement No. 66 In March 2012, GASB issued Statement No. 66,Technical Correction – 2012 – an amendment of GASB Statement No. 10 and No. 62.The objective of this Statement is to improve accounting and financial reporting for a governmental financial reporting entity by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No. 54,Fund Balance Reporting and Government Fund Type Definitions,and No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements.The provisions of Statement 66 are effective for financial statements for periods beginning after December 15, 2012, with earlier application encouraged. The City has not determined its effect on the financial statements. Statement No. 67 In June, 2012, GASB issued Statement No. 67, Financial Reporting for Pension Plans – amendment of GASB Statement No. 25. The objective of this Statement is to improve financial reporting by state and local government pension plans. This Statement results from a comprehensive review of the effectiveness of existing standards of accounting and financial reporting for pensions with regards to providing decision-useful information, supporting assessments of accountability and inter-period equity, and creating additional transparency. This pronouncement is effective for financial statements periods after June 15, 2013. Early implementation is encouraged. The City has not yet determined whether this Statement change will have an effect on the financial statements. Statement No. 68 In June 2012, GASB issued Statement No. 68,Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27.The primary objective of this Statement is to improve accounting and financial reporting by state and local governments for pensions. It also improves information provided by state and local government employers about financial support for pensions that is provided by other entities. The provisions of Statement 68 are effective for financial statements for periods beginning after June 15, 2014, with earlier application encouraged. The City has not determined its effect on the financial statements. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-64 NEW GASB PRONOUNCEMENTS (Continued) Statement No. 69 In January 2013, GASB issued Statement No. 69,Government Combinations and Disposals of Government Operations.The primary objective of this Statement is to establish accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations The provisions of Statement 69 are effective for financial statements for periods beginning after December 15, 2013, with earlier application encouraged. The City has not determined its effect on the financial statements. Statement No. 70 In April 2013, GASB issued GASB Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees. The objective of this Statement is to improve accounting and financial reporting by state and local governments that extend and receive nonexchange financial guarantees. The provisions of this Statement are effective for reporting periods beginning after June 15, 2013. Earlier application is encouraged. The City is required to implement the provisions of this Statement in fiscal year ending June 30, 2015.The City has not determined its effect on the financial statements. Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date — The objective of this Statement is to address an issue regarding application of the transition provisions of Statement No. 68, Accounting and Financial Reporting for Pensions. The issue relates to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government’s beginning net pension liability. The provisions of this Statement should be applied simultaneously with the provisions of Statement 68. 18.SUBSEQUENT EVENT The “advances to successor agency” reported in the general fund include $2,075,000 owed to the City by the Successor Agency to the Community Development Commission of the City of Rohnert Park (“Successor Agency”) under a loan agreement originally executed in June 1988. Payments on the loan are subject to administrative approval processes in accord with the Redevelopment Dissolution Law. On September 16, 2013 the Oversight Board (Oversight Board) to the Successor Agency determined that the loan was for legitimate redevelopment purposes, as is required for repayment under Health and Safety Code Section 34191.4(b)(2)(A); and issued its Resolution Number OSB 2013-05 in support of loan repayment. On November 1, 2013, after review of the Oversight Board’s resolution, the State of California Department of Finance (DOF) provided the City with a notice of approval of the Oversight Board’s action, and cited qualifications for loan repayment in accordance with the Health and Safety Code (HSC) section 34191.4. Repayment is limited to increases in future residual tax distributions to taxing entities. HSC section 34191.4(b)(2) requires the interest be calculated from loan origination at the Local Agency Investment Fund (LAIF) rate. The LAIF is a pooled cash investment fund that agencies within the State of California, use for short term cash custody and investment. CITY OF ROHNERT PARK NOTES TO THE BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-65 20% of loan repayment proceeds shall be transferred to the Low and Moderate Income Housing Asset Fund. The City has not received recalculation instructions from DOF, and has not made adjustments for amounts owed for the advance at June 30, 2013. The entire amount owed under the advance is classified as “non-spendable,” in accordance with GASB No. 54. REQUIRED SUPPLEMENTARY INFORMATION CITY OF ROHNERT PARK SCHEDULE OF FUNDING PROGRESS FOR THE YEAR ENDED JUNE 30, 2013 F-66 PERS Schedule of Funding Progress for Miscellaneous Plan (dollar amounts in thousands) (Unaudited) (B) (C) (F) Entry Unfunded Unfunded (A) Age Actuarial (D) Actuarial Liability Actuarial Actuarial Actuarial Accrued Funded (E) as Percentage of Valuation Asset Accrued Liability Ratio Covered Covered Payroll Date Value Liability [(B) – (A)] [(A) / (B)] Payroll [(C)/(E)] 6/30/10 53,153$ 65,556$ 12,403$ 81.1% 6,844$ 181.2% 6/30/11 55,347 67,818 12,471 81.6% 6,895 180.9% 6/30/12 56,812 69,160 12,348 82.1% 6,420 192.3% Funding Progress for the OPEB Plan Actuarial Valuation Date Actuarial Valuation of Assets (a) Actuarial Accrued Liability (AAL) (b) Unfunded (Overfunded) AAL (UAAL) (b)-(a) Funded Ration (a)/(b) Covered Payroll UAAL as aPercentage ofCovered Payroll [(b)-(a)/( c )] 7/1/2010 -$ 43,032$ 43,032$ 0% 12,080$ 356.23% 7/1/2011 1,200 40,741 39,541 2.95% 13,740 287.78% 7/1/2012 1,654 41,857 40,203 3.95% 14,299 281.16% CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2013 F-67 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Taxes: Property 2,662,411$ 2,662,411$ 2,996,980$ 334,569$ Real property transfer 75,000 75,000 126,804 51,804 Transient occupancy 1,700,000 1,700,000 2,202,885 502,885 Sales and use 8,998,587 8,998,587 9,555,854 557,267 Franchises 1,430,000 1,430,000 1,682,427 252,427 Total taxes 14,865,998 14,865,998 16,564,950 1,698,952 Licenses, permits and fees: Business licenses 478,000 478,000 464,467 (13,533) Animal licenses 65,000 65,000 45,686 (19,314) Building permits 220,500 220,500 231,265 10,765 Plan check 292,000 292,000 419,588 127,588 Total licenses, permits and fees 1,055,500 1,055,500 1,161,006 105,506 Fines, forfeitures and penalties: Vehicle code 90,000 90,000 132,330 42,330 Parking fines 52,000 52,000 50,048 (1,952) Impound fees 12,000 12,000 13,022 1,022 Other court 4,130 4,130 4,866 736 Total fines, forfeitures and penalties: 158,130 158,130 200,266 42,136 Interest and rentals: Investment earnings 120,000 120,000 2,444 (117,556) Rent - golf courses 175,000 175,000 76,955 (98,045) Rent - other 490,705 490,705 258,402 (232,303) Total interest and rentals 785,705 785,705 337,801 (447,904) Intergovernmental: State motor vehicle in-lieu tax 2,901,406 2,901,406 2,630,122 (271,284) Public Safety Augmentation Fund 190,000 190,000 220,151 30,151 Grants 61,000 61,000 221,430 160,430 Reimbursements 40,000 40,000 54,686 14,686 Other - - 8,000 8,000 Subtotal 3,192,406 3,192,406 3,134,389 (58,017) CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2013 F-68 Variance with Final Budget (Continued) Original Final Actual Positive Budget Budget Amount (Negative) REVENUES (Continued) Charges for current services: Zoning and subdivision fees 70,000 70,000 107,433 37,433 General plan maintenance fee 14,000 14,000 25,695 11,695 Sales of maps and lists 1,000 1,000 464 (536) Special public safety services 40,000 40,000 25,097 (14,903) Vehicle abatement revenue 20,000 20,000 105,812 85,812 Animal shelter fees 65,000 65,000 110,328 45,328 Alcohol Education Fee 25,000 25,000 41,428 16,428 Engineering fees 110,000 110,000 228,487 118,487 Library ground maintenance 8,370 8,370 8,370 - Recreation: Recreation centers 1,000,500 1,000,500 907,866 (92,634) Swimming pools 137,500 137,500 159,579 22,079 Community Events 60,000 60,000 48,494 (11,506) Subtotal 1,551,370 1,551,370 1,769,053 217,683 Donations and miscellaneous: Performing Arts Center 432,000 432,000 403,728 (28,272) Refuse administration - - 166,087 166,087 Donations - - 260,036 260,036 Miscellaneous 100,000 100,000 969,224 869,224 Subtotal 532,000 532,000 1,799,075 1,267,075 Total revenues 22,141,109 22,141,109 24,966,540 2,825,431 (continued) CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2013 F-69 Variance with (Continued) Final Budget Original Final Actual Positive EXPENDITURES Budget Budget Amount (Negative) Current: General government: City Council 76,492 76,492 74,429 2,063 City Manager 734,374 735,260 581,275 153,985 Finance and accounting 524,926 524,926 482,200 42,726 Information Services 744,573 744,573 662,420 82,153 Legal services 425,000 425,000 579,695 (154,695) Development Services 1,054,267 1,015,916 788,683 227,233 Human Resource 385,835 385,835 347,121 38,714 Rent appeals board 43,697 43,697 74,228 (30,531) City Office building 558,330 558,330 202,482 355,848 City Office annex 45,365 45,365 19,994 25,371 Property tax administration fee 118,000 118,000 42,324 75,676 General government- nondepartmental 95,700 95,700 235,933 (140,233) Nondepartmental- employee benefits 1,715,253 1,715,253 1,509,135 206,118 Subtotal 6,521,812 6,484,347 5,599,919 884,428 Public safety: Personnel 12,407,229 12,407,229 11,468,491 938,738 Police protection 1,558,637 1,716,607 1,594,380 122,227 Fire protection 305,400 245,400 140,562 104,838 Civil defense 4,000 4,000 1,393 2,607 Animal control 394,303 394,303 398,679 (4,376) Animal shelter 33,300 33,300 32,543 757 Main station 214,876 214,876 200,042 14,834 North station 22,346 22,346 18,903 3,443 South station 11,356 11,356 11,517 (161) Booking fees - - - - Sexual assault examination fees 21,600 21,600 18,000 3,600 Subtotal 14,973,047 15,071,017 13,884,510 1,186,507 CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2013 See note to required supplementary information. F-70 (continued) Variance with (Continued) Final Budget Original Final Actual Positive EXPENDITURES (Continued) Budget Budget Amount (Negative) Current: Public works: General 374,961 374,961 321,796 53,165 Maintenance of streets/bikepaths 826,404 821,404 842,416 (21,012) Storm drains and drainage 89,770 89,770 78,731 11,039 Subtotal 1,291,135 1,286,135 1,242,943 43,192 Parks and recreation: Parks maintenance-general 888,701 893,701 783,312 110,389 Recreation centers 1,212,896 1,212,896 1,132,341 80,555 Swimming pools 313,686 313,686 326,903 (13,217) Recreation administration and programs 10,000 25,000 30,988 (5,988) Golf courses 6,893 6,893 6,800 93 Library 20,747 20,747 20,557 190 Subtotal 2,452,923 2,472,923 2,300,901 172,022 Cultured Arts Center Performing Arts Center 604,831 652,131 704,021 (51,890) Capital outlay 319,270 319,270 350,487 (31,217) Subtotal 26,163,018 26,285,823 24,082,781 2,203,042 EXCESS/DEFICIENCY OF REVENUES OVER/UNDER EXPENDITURES (4,021,909) (4,144,714) 883,759 5,028,473 OTHER FINANCING SOURCES (USES) Transfers in 1,543,989 1,543,989 1,038,718 (505,271) Transfers out (109,500) (109,500) (563,589) (454,089) Total other financing sources (uses) 1,434,489 1,434,489 475,129 (959,360) NET CHANGE IN FUND BALANCE (2,587,420)$ (2,710,225)$ 1,358,888 4,069,113$ FUND BALANCE, BEGINNING OF YEAR 9,551,854 RESTATEMENT (NOTE 15) 342,359 FUND BALANCE, BEGINNING OF YEAR RESTATED 9,894,213 FUND BALANCE, END OF YEAR 11,253,101$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE HOUSING PROJECTS SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-71 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Interest and rentals -$ -$ 5,820 5,820$ Total revenues - - 5,820 5,820 EXPENDITURES Current: General government - - 1,267,110 (1,267,110) Debt Service - - 45,000 (45,000) Total expenditures - - 1,312,110 (1,312,110) EXCESS OF REVENUES OVER EXPENDITURES - - (1,306,290) (1,306,290) OTHER FINANCING USES Transfers in - - - - Transfers out - - (444,162) (444,162) Total other financing sources (uses) - - (444,162) (444,162) NET CHANGE IN FUND BALANCE -$ -$ (1,750,452) (1,750,452)$ FUND BALANCE, BEGINNING OF YEAR 23,100,980 FUND BALANCE, END OF YEAR 21,350,528$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE PUBLIC FACILITY FINANCE FEE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-72 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Licenses, permits and fees: 20,130$ 20,130$ 13,113,171$ 13,093,041$ Interest and rentals 4,959 4,959 3,879 (1,080) Total revenues 25,089 25,089 13,117,050 13,091,961 OTHER FINANCING SOURCES (USES) Transfers out - - (698,100) (698,100) NET CHANGE IN FUND BALANCE 25,089$ 25,089$ 12,418,950 12,393,861$ FUND BALANCE, BEGINNING OF YEAR 664,165 FUND BALANCE, END OF YEAR 13,083,115$ CITY OF ROHNERT PARK NOTE TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-73 Budgets and Budgetary Accounting The City operates under the general laws of the State of California and annually adopts a budget for its General Fund to be effective July 1 for the ensuing fiscal year. From the effective date of the budget, which is adopted and controlled at the department level, the amounts stated therein as proposed expenditures become appropriations to the various City departments. The City Council may amend the budget by resolution during the fiscal year. The legal level of budgetary control is the fund level. The City Manager may authorize transfers from one account to another within the same department. All unencumbered appropriations lapse at year-end. Annual budgets for the City General Fund, Housing Projects Special Revenue Fund, State Gasoline Tax Special Revenue Fund, Measure M Traffic Fund, Prop 1B Special Revenue Fund, Traffic Signals Fee Special Revenue Fund, Capital Outlay Fee Special Revenue Fund, Supplemental Law Enforcement Services Special Revenue Fund, , DIVCA PEG Fee (AB 2987) Special Revenue Fund, Traffic Congestion Relief (AB2928) Special Revenue Fund, Graton Mitigation Special Revenue Fund, Graton Mitigation Special Enforcement Activity Special Revenue Fund, Measure M Fire Benefit Assessment Special Revenue Fund, Mobile Home Rent Appeals Board Special Revenue Fund, and Copeland Creek Drainage Facility Special Revenue Fund are adopted on a basis consistent with accounting principles generally accepted in the United States of America, with the exception of proceeds from the sale of capital assets, which is treated as revenues on the budgetary basis. The City prefers to leave its original budget unaltered during the year, unless there are substantial changes to budget forecasts, so that the effectiveness of individual departments in meeting budget objectives can be evaluated and the adequacy of the budget itself can be judged. Expenditures in excess of budgeted amounts are allowed by law but must be approved individually by the City Manager and are required to be disclosed per GAAP. Encumbrance accounting, under which purchase orders, contracts, and other commitments of expenditures are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of the budgetary process. No encumbrances were outstanding at June 30, 2013. This page is intentionally left blank OTHER SUPPLEMENTARY INFORMATION CITY OF ROHNERT PARK OTHER SUPPLEMENTARY INFORMATION DESCRIPTION OF OTHER GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-74 NONMAJOR SPECIAL REVENUE FUNDS To account for revenues derived from specific revenue sources. These funds are required by statute or ordinance to finance particular functions or activities of government. The various funds and sources are: State Gasoline Tax Fund – From revenues received pursuant to Street and Highway Code Sections 2105, 2106, 2107, and 2107.5 and other funds for the purpose of maintenance and construction of the City streets. Measure M Streets Fund – From revenues received from County on one quarter cent sales tax for street improvements. Prop IB Fund - From revenues received from the States issued general obligation bond proceeds to City for maintenance and improvements of local transportation facilities. Traffic Signals Fee Fund – From revenues received from fees imposed on developers for the purpose of constructing traffic signals. Capital Outlay Fee Fund – From revenues received from fees imposed on developers for the purpose of park development, open space, and community facilities such as fire stations, libraries, auditoriums, stadiums, etc. Supplemental Law Enforcement Services Fund – From revenues received from the State of California pursuant to AB 3229 for the purpose of ensuring public safety. DIVCA PEG Fee (AB 2987) Fund - Accounts for activities related to public, educational and governmental access channels, as mandated by Assembly Bill 2987. Traffic Congestion Relief (AB 2928) Fund – From revenues received pursuant to Assembly Bill 2928 for the purpose of maintenance and reconstruction of streets and roads. Graton Mitigation Special Revenue Fund - Accounts for activity related to the memorandum of understanding between the Federated Indians of the Graton Rancheria (Tribe) and the City of Rohnert Park, California (City). The City and the Tribe reached agreement on mutual acts and related funding to mitigate the impact of casino operations on the City. Graton Mitigation Special Enforcement Activity Fund - Accounts for special law enforcement activity funded through a memorandum of understanding between the Federated Indians of the Graton Rancheria and the City of Rohnert Park. Measure M Fire Benefit Assessment Fund – From revenues received pursuant to the voter approved fire benefit assessment district. Purpose is to finance enhancements of fire suppression activities. Mobile Home Rent Appeals Board Fund – From revenues received pursuant to City of Rohnert Park Ordinance 494 authorizing the collection of registration fees from mobile home parks. Purpose is to fund the Mobile Home Rent Appeals Board. Copeland Creek Drainage Facility Fund - From revenues received from fees imposed on developers in a specific area serviced by the Copeland Creek drainage improvements. Purpose is to repay the costs of the Copeland Creek drainage improvements. CITY OF ROHNERT PARK OTHER SUPPLEMENTARY INFORMATION DESCRIPTION OF OTHER GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 F-75 NONMAJOR PERMANENT FUND To account for resources that are legally restricted to the extent that only earnings, and not principal, may be used for purposes that support the City’s programs (i.e., for the benefit of the City or its citizenry). Performing Arts Center Endowment Permanent Fund – To account for capital donated for the City’s Dorothy Rohnert Sprekels Performing Arts Center. The interest generated from the donations is used for operating costs of the Performing Arts Center. CITY OF ROHNERT PARK COMBINING BALANCE SHEET OTHER NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2013 F-76 Performing Nonmajor Arts Center Special Endowment Revenue Permanent Funds Fund Total Cash and investments 6,358,797$ 1,198,388$ 7,557,185$ Receivables: Accounts 213,466 - 213,466 Due from other funds 6,635 - 6,635.00 Total assets 6,578,898$ 1,198,388$ 7,777,286$ Accounts payable 24,809$ -$ 24,809$ Deferred revenue 32,217 - 32,217 Total liabilities 57,026 57,026 Nonspendable Permanent fund principal - 1,198,388 1,198,388 Restricted Street projects 2,123,052 - 2,123,052 Capital projects 1,534,501 - 1,534,501 Public Safety 31,894 - 31,894 Technology 222,138 - 222,138 Other projects 10,471 - 10,471 Committed 2,604,735 - 2,604,735 Unrestricted (4,919) - (4,919) Total fund balances 6,521,872 1,198,388 7,720,260 Total liabilities and fund balances 6,578,898$ 1,198,388$ 7,777,286$ ASSETS LIABILITIES FUND BALANCES CITY OF ROHNERT PARK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OTHER GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2013 F-77 Performing Nonmajor Arts Center Total Special Endowment Other Revenue Permanent Governmental Funds Fund Funds REVENUES Taxes 520,329$ -$ 520,329$ Intergovernmental 1,336,322 - 1,336,322 Interest and rentals 19,504 6,505 26,009 Licenses, permits and fees 132,837 - 132,837 Donations 2,664,000 - 2,664,000 Totalrevenues 4,672,992 6,505 4,679,497 EXPENDITURES Current: Generalgovernment 42,948 - 42,948 Totalexpenditures 42,948 - 42,948 EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 4,630,044 6,505 4,636,549 OTHER FINANCING SOURCES (USES) Transfers in 559,053 2,481 561,534 Transfers out (2,894,328) (76,449) (2,970,777) Totalother financing sources (uses) (2,335,275) (73,968) (2,409,243) NET CHANGE IN FUND BALANCES 2,294,769 (67,463) 2,227,306 FUND BALANCES: BEGINNING OF THE YEAR 4,227,103 1,265,851 5,492,954 END OF YEAR 6,521,872$ 1,198,388$ 7,720,260$ CITY OF ROHNERT PARK COMBINING BALANCE SHEET NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2013 F-78 Supplemental DIVCA State Traffic Capital Law PEG Gasoline Measure M Signals Outlay Enforcement Fee Tax Traffic Prop 1B Fee Fee Services (AB2987) ASSETS Cash and investments 1,730,555$ 238,255$ 42$ 1,260,045$ 219,877$ -$ 194,537 Receivables (net of allowance for uncollectibles): Accounts 86,937 67,305 - - - 27,298 27,601 Due from other funds - - - - - - - Totalassets 1,817,492$ 305,560$ 42$ 1,260,045$ 219,877$ 27,298$ 222,138$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ -$ -$ Due to other funds - - - - - 27,298 - Totalliabilities - - - - - 27,298 - FUND BALANCES (DEFICIT) Restricted 1,817,492 305,560 42 1,260,045 219,877 - 222,138 Committed - - - - - - Unassigned - - - - - - - Totalfund balances 1,817,492 305,560 42 1,260,045 219,877 - 222,138 Totalliabilities and fund balances 1,817,492$ 305,560$ 42$ 1,260,045$ 219,877$ 27,298$ 222,138$ (continued) CITY OF ROHNERT PARK COMBINING BALANCE SHEET (CONTINUED) NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2013 F-79 Mobile Traffic Graton Measure M Home Copeland Congestion Mitigation Special Fire Rent Creek Relief Graton Enforcement Benefit Appeals Drainage (AB2928) Mitigation Activitiy Assessment Board Facility Total ASSETS Cash and investments -$ 2,622,909$ -$ 27,569$ 10,471$ 54,537$ 6,358,797$ Receivables (net of allowance for uncollectibles): Accounts - - - 4,325 - - 213,466 Due from other funds - 6,635 - - - - 6,635 Totalassets -$ 2,629,544$ -$ 31,894$ 10,471$ 54,537$ 6,578,898$ LIABILITIES - Accounts payable -$ 24,809$ -$ -$ -$ -$ 24,809$ Due to other funds - - 4,919 - - - 32,217 Totalliabilities - 24,809 4,919 - - - 57,026 . FUND BALANCES (DEFICIT) Restricted - - - 31,894 10,471 54,537 3,922,056 Committed 2,604,735 - - - 2,604,735 Unassigned - - (4,919) - - - (4,919) Totalfund balances - 2,604,735 (4,919) 31,894 10,471 54,537 6,521,872 Totalliabilities and fund balances -$ 2,629,544$ -$ 31,894$ 10,471$ 54,537$ 6,578,898$ (concluded) CITY OF ROHNERT PARK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2013 F-80 Supplemental State Traffic Capital Law DIVCA Gasoline Measure M Signals Outlay Enforcement PEG Tax Traffic Prop 1B Fee Fee Services Fee REVENUES Measure M assessments -$ -$ -$ -$ -$ -$ -$ Intergovernmental 992,755 243,567 - - - 100,000 - Interest and rentals 6,496 2,315 - 7,995 1,050 185 531 Licenses, permits and fees - - - - - 132,837 Donations - - - - - - Total revenues 999,251 245,882 - 7,995 1,050 100,185 133,368 EXPENDITURES Current: General government 19,855 - - - - - EXCESS OF REVENUES OVER EXPENDITURES 979,396 245,882 - 7,995 1,050 100,185 133,368 OTHER FINANCING SOURCES (USES) Transfers in 398,683 - - - - - 105,833 Transfers out (1,244,151) (437,431) - (509,182) - (109,974) (17,063) Total other financing sources (uses) (845,468) (437,431) - (509,182) - (109,974) 88,770 NET CHANGE IN FUND BALANCES 133,928 (191,549) - (501,187) 1,050 (9,789) 222,138 FUND BALANCE BEGINNING OF THE YEAR 1,683,564 497,109 42 1,761,232 218,827 9,789 - FUND BALANCE END OF YEAR 1,817,492$ 305,560$ 42$ 1,260,045$ 219,877$ -$ 222,138$ (continued) CITY OF ROHNERT PARK COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE (CONTINUED) NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2013 F-81 Mobile Traffic Graton Measure M Home Copeland Congestion Mitigation Special Fire Rent Creek Relief Graton Enforcement Benefit Appeals Drainage (AB2928) Mitigation Activitiy Assessment Board Facility Total REVENUES Measure M assessments -$ -$ -$ 520,329$ -$ -$ 520,329$ Intergovernmental - - - - - - 1,336,322 Interest and rentals - 932 - - - - 19,504 Licenses, permits and fees - - - - - - 132,837 Donations - 2,664,000 - - - - 2,664,000 Total revenues - 2,664,932 - 520,329 - - 4,672,992 EXPENDITURES Current: General government - 18,174 4,919 - - - 42,948 EXCESS OF REVENUES OVER EXPENDITURES - 2,646,758 (4,919) 520,329 - - 4,630,044 OTHER FINANCING SOURCES (USES) Transfers in - - - - - 54,537 559,053 Transfers out (2) (42,023) - (500,000) (34,502) - (2,894,328) Total other financing sources (uses) (2) (42,023) - (500,000) (34,502) 54,537 (2,335,275) NET CHANGE IN FUND BALANCES (2) 2,604,735 (4,919) 20,329 (34,502) 54,537 2,294,769 FUND BALANCE BEGINNING OF THE YEAR 2 - - 11,565 44,973 - 4,227,103 FUND BALANCE END OF YEAR -$ 2,604,735$ (4,919)$ 31,894$ 10,471$ 54,537$ 6,521,872$ (concluded) CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE STATE GASOLINE TAX SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-82 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Interest and rentals 7,589$ -$ 6,496$ 6,496$ Intergovernmental: Section 2105, maintenance 209,762 209,762 187,772 (21,990) Section 2106, construction 145,098 145,098 150,347 5,249 Section 2107, maintenance 301,038 301,038 309,544 8,506 Section 2107.5, engineering 6,000 6,000 6,000 - R & T 360 Prop 42 Swap 471,070 471,070 339,092 (131,978) Total revenues 1,140,557 1,132,968 999,251 (133,717) EXPENDITURES Current: General government - - 19,855 (19,855) EXCESS OF REVENUES OVER EXPENDITURES 1,140,557 1,132,968 979,396 (153,572) OTHER FINANCING USES Transfers in (1,140,557) - 398,683 398,683 Transfers out - - (1,244,151) (1,244,151) NET CHANGE IN FUND BALANCE -$ 1,132,968$ 133,928 (999,040)$ FUND BALANCE, BEGINNING OF YEAR 1,683,564 FUND BALANCE, END OF YEAR 1,817,492$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE MEASURE M TRAFFIC SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-83 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Licenses, permits and fees: Measure M Streets Allocation 208,762$ 208,762$ 243,567 34,805$ Interest and rentals 2,532 2,532 2,315 (217) Total revenues 211,294 211,294 245,882 34,588 OTHER FINANCING USES Transfers out - - (437,431) (437,431) NET CHANGE IN FUND BALANCE 211,294$ 211,294$ (191,549) (402,843)$ FUND BALANCE, BEGINNING OF YEAR 497,109 FUND BALANCE, END OF YEAR 305,560$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE PROP 1B SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-84 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Licenses, permits and fees: Interest and rentals 2,500$ 2,500$ - (2,500)$ Total revenues 2,500 2,500 - (2,500) OTHER FINANCING USES Transfers out - - - - NET CHANGE IN FUND BALANCE 2,500$ 2,500$ - (2,500)$ FUND BALANCE, BEGINNING OF YEAR 42 FUND BALANCE, END OF YEAR 42$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE TRAFFIC SIGNALS FEE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-85 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Licenses, permits and fees: Interest and rentals 13,482$ 13,482$ 7,995$ (5,487)$ Totalrevenues 13,482 13,482 7,995 (5,487) OTHER FINANCING USES Transfers out - - (509,182) (509,182) NET CHANGE IN FUND BALANCE 13,482$ 13,482$ (501,187) (514,669)$ FUND BALANCE, BEGINNING OF YEAR 1,761,232 FUND BALANCE, END OF YEAR 1,260,045$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE CAPITAL OUTLAY FEE SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-86 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Interest and rentals 1,574$ 1,574$ 1,050$ (524)$ Total revenues 1,574 1,574 1,050 (524) OTHER FINANCING USES Transfers in - - - - Transfers out - - - - NET CHANGE IN FUND BALANCE 1,574$ 1,574$ 1,050 (524)$ FUND BALANCE, BEGINNING OF YEAR 218,827 FUND BALANCE, END OF YEAR 219,877$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE SUPPLEMENTAL LAW ENFORCEMENT SERVICES SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-87 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Interest and rentals -$ -$ 185$ 185$ Intergovernmental 100,000 100,000 100,000 - Total revenues 100,000 100,000 100,185 185 OTHER FINANCING USES Transfers out - - (109,974) (109,974) NET CHANGE IN FUND BALANCE 100,000$ 100,000$ (9,789) (109,789)$ FUND BALANCE, BEGINNING OF YEAR 9,789 FUND BALANCE, END OF YEAR -$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE DIVCA (AB2987) PEG FEES SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-88 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Licenses, permits and fees: -$ -$ 132,837$ 132,837$ Interest Income - - 531 531 Total revenues - - 133,368 133,368 OTHER FINANCING USES Transfers in 105,833 105,833 Transfers out - - (17,063) (17,063) NET CHANGE IN FUND BALANCE -$ -$ 222,138 222,138$ FUND BALANCE, BEGINNING OF YEAR - FUND BALANCE, END OF YEAR 222,138$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE TRAFFIC CONGESTION RELIEF (AB2928) SPECIAL FUND REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-89 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Interest and rentals -$ -$ - -$ Totalrevenues - - - - OTHER FINANCING USES Transfers out - - - - NET CHANGE IN FUND BALANCE -$ -$ - -$ FUND BALANCE, BEGINNING OF YEAR - FUND BALANCE, END OF YEAR -$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE GRATON MITIGATION FUND FOR THE YEAR ENDED JUNE 30, 2013 F-90 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Donations -$ -$ 2,664,000$ 2,664,000$ Interest Income - - 932 932 Totalrevenues - - 2,664,932 2,664,932 EXPENDITURES Current: General government - - 18,174 (18,174) EXCESS OF REVENUES OVER EXPENDITURES - - 2,646,758 2,646,758 OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - (42,023) (42,023) Totalother financing sources (uses) - - (42,023) (42,023) NET CHANGE IN FUND BALANCE -$ -$ 2,604,735 2,604,735$ FUND BALANCE, BEGINNING OF YEAR - FUND BALANCE, END OF YEAR 2,604,735$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE GRATON MITIGATION SPECIAL ENFORCEMENT ACTIVITY FUND FOR THE YEAR ENDED JUNE 30, 2013 F-91 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Donations -$ -$ - -$ Interest Income - - - - Total revenues - - - - EXPENDITURES Current: General government - - 4,919 (4,919) EXCESS OF REVENUES OVER EXPENDITURES - - (4,919) (4,919) OTHER FINANCING SOURCES (USES) Transfers in - - - - Transfers out - - - - Total other financing sources (uses) - - - - NET CHANGE IN FUND BALANCE -$ -$ (4,919) -$ FUND BALANCE, BEGINNING OF YEAR - FUND BALANCE, END OF YEAR (4,919)$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE MEASURE M FIRE BENEFIT ASSESSMENT SPECIAL REFUND FUND FOR THE YEAR ENDED JUNE 30, 2013 F-92 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Measure M assessments 500,000$ 500,000$ 520,329$ 20,329$ OTHER FINANCING USES Transfers out - - (500,000) (500,000) NET CHANGE IN FUND BALANCE 500,000$ 500,000$ 20,329 (479,671)$ FUND BALANCE, BEGINNING OF YEAR 11,565 FUND BALANCE, END OF YEAR 31,894$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE MOBILE HOME RENT APPEALS BOARD SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-93 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) OTHER FINANCING USES Transfers in -$ -$ -$ -$ Transfers out - - (34,502) (34,502) NET CHANGE IN FUND BALANCE -$ -$ (34,502) (34,502)$ FUND BALANCE, BEGINNING OF YEAR 44,973 FUND BALANCE, END OF YEAR 10,471$ CITY OF ROHNERT PARK BUDGETARY COMPARISON SCHEDULE COPELAND CREEK DRAINAGE FACILITY SPECIAL REVENUE FUND FOR THE YEAR ENDED JUNE 30, 2013 F-94 Variance with Final Budget Original Final Actual Positive Budget Budget Amount (Negative) REVENUES Licenses, permits and fees: -$ -$ -$ -$ Interest and rentals - - - - Totalrevenues - - - - OTHER FINANCING USES Transfers in - - 54,537 - Transfers out - - - - Totalother financing sources (uses) - - - - NET CHANGE IN FUND BALANCE -$ -$ 54,537 -$ FUND BALANCE, BEGINNING OF YEAR - FUND BALANCE, END OF YEAR 54,537$ CITY OF ROHNERT PARK FIDUCIARY FUNDS COMBINING STATEMENT OF FIDUCIARY NET POSITION JUNE 30, 2013 F-95 Special RDA Obligation Total Enforcement Retirement Private Purpose Unit - South Trust Fund Trust Funds Cash and investments 157,768$ 4,630,111$ 4,787,879$ Receivables: Accrued interest - 86 86 Deferred Charges - 1,269,948 1,269,948 Restricted cash & investments - 8,065,562 8,065,562 Advance to successor agency - 10,344,225 10,344,225 Nondepreciable capital assets - 4,934,146 4,934,146 Depreciable capital assists - 14,646,646 14,646,646 Total assets 157,768 43,890,724 44,048,492 Accounts payable 9,292 15,295 24,587 Accrued liabilities - 987,823 987,823 Advance from successor agency - 2,199,675 2,199,675 Long-term debt Due in one year - 1,504,363 1,504,363 Due in more than one year - 62,038,660 62,038,660 Total liabilities 9,292 66,745,816 66,755,108 Total net assets (deficit) held in trust 148,476$ (22,855,092)$ (22,706,616)$ ASSETS LIABILITIES NET POSITION CITY OF ROHNERT PARK FIDUCIARY FUNDS COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FOR THE YEAR ENDED JUNE 30, 2013 F-96 Special RDA Obligation Total Enforcement Retirement Private Purpose Unit - South Trust Fund Trust Funds ADDITIONS Taxes -$ 5,381,261$ 5,381,261$ Interest and rentals 15,895 29,555 45,450 Other 66,630 66,630 Total additions 15,895 5,477,446 5,493,341 DEDUCTIONS Current: Program expenses - 2,068,134 2,068,134 Law enforcement costs 16,139 - 16,139 Debt service: Principal 1,271,453 1,271,453 Interest and fiscal charges - 1,153,815 1,153,815 Total deductions 16,139 4,493,402 4,509,541 CHANGE IN NET POSITION (244) 984,044 983,800 NET POSITION, BEGINNING OF THE YEAR 148,720 (23,839,136) (23,690,416) NET POSITION (DEFICIT), END OF YEAR 148,476$ (22,855,092)$ (22,706,616)$ This page is intentionally left blank S-1 STATISTICAL SECTION S-2 Statistical Section Contents Page Financial Trends S-3 These schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity S-6 These schedules contain information to help the reader assess the factors affecting the city's ability to generate its property and sales taxes. Debt Capacity S-17 These 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 S-22 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 S-25 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. This part of the City's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health. S-3 City of Rohnert Park Net Position by Component (Unaudited) Last Ten Fiscal Years (accrual basis of accounting) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Governmentalactivities Net investment in capitalassets 49,803,902$ 52,293,588$ 25,958,726$ 45,009,673$ 46,572,533$ 56,608,019$ 36,112,457$ 28,259,799$ 30,487,238$ 24,399,786$ Restricted 33,166,020 27,482,966 17,346,572 2,418,812 13,873,842 5,730,424 11,318,076 5,955,759 8,551,078 8,569,188 Unrestricted 17,562,930 5,629,596 16,293,462 16,995,866 13,927,933 17,318,920 19,471,114 29,407,530 23,317,496 33,121,656 Totalgovernmentalactivities net position 100,532,852$ 85,406,150$ 59,598,760$ 64,424,351$ 74,374,308$ 79,657,363$ 66,901,647$ 63,623,088$62,355,812$66,090,630$ Business-type activities Net investment in capitalassets 23,820,293$ 25,277,232$ 25,501,383$ 27,364,564$ 17,081,819$ 25,538,667$ 17,709,497$ 14,867,127$ 16,741,255$ 9,464,157$ Unrestricted 5,662,653 1,287,885 1,062,428 2,435,608 14,654,310 6,682,325 11,737,893 11,641,400 7,886,726 15,200,557 Totalbusiness-type activities net position 29,482,946$ 26,565,117$ 26,563,811$ 29,800,172$ 31,736,129$ 32,220,992$ 29,447,390$ 26,508,527$ 24,627,981$ 24,664,714$ Primary government Net investment in capitalassets 73,624,195$ 77,570,820$ 51,460,109$ 72,374,237$ 63,654,352$ 82,146,686$ 53,821,954$ 43,126,926$ 47,228,493$ 33,863,943$ Restricted 33,166,020 27,482,966 17,346,572 2,418,812 13,873,842 5,730,424 11,318,076 5,955,759 8,551,078 8,569,188 Unrestricted 23,225,583 6,917,481 17,355,890 19,431,474 28,582,243 24,001,245 31,209,007 41,048,930 31,204,222 48,322,213 Totalprimary government net position 130,015,798$ 111,971,267$ 86,162,571$ 94,224,523$ 106,110,437$ 111,878,355$ 96,349,037$ 90,131,615$ 86,983,793$ 90,755,344$ Source: City Finance Department Fiscal Year S-4 City ofRohnert Park Changes in Net Position (Unaudited) Last Ten Fiscal Years (accrual basis of accounting) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Expenses Governmentalactivities: Generalgovernment 10,772,401$ 14,017,267$ 16,306,249$ 18,388,212$ 16,036,110$ 12,955,293$ 12,926,332$ 11,455,704$ 11,762,224 8,280,697 Public Safety 14,347,850 14,403,785 15,455,097 16,930,100 19,823,047 20,758,556 17,349,211 16,703,386 15,087,248 13,459,313 Public Works 2,840,555 3,530,589 3,416,002 4,228,872 4,050,312 4,421,182 4,522,563 4,220,758 4,408,673 4,369,470 Parks and recreation 3,085,681 3,266,821 3,659,993 3,650,692 4,687,184 4,979,212 4,198,572 4,167,196 3,968,774 3,834,955 Other 704,021 587,931 417,011 646,355 841,126 902,319 889,073 1,504,207 1,411,055 1,043,298 Interest on long-term debt 499,028 1,920,730 3,856,319 5,939,204 4,586,047 4,629,601 2,690,598 2,038,944 2,060,965 1,991,137 Totalgovernmentalactivities expenses 32,249,536 37,727,123 43,110,671 49,783,435 50,023,826 48,646,163 42,576,349 40,090,195 38,698,939 32,978,870 Business-type activities: Water 5,929,852 7,095,841 6,791,475 5,702,115 6,306,127 7,122,292 6,690,385 6,454,568 5,650,092 5,593,980 Sewer 11,768,056 10,659,707 12,071,585 11,252,707 11,318,825 9,830,647 10,085,147 9,697,231 8,851,372 7,465,887 Refuse Collection 3,039,046 5,534,555 5,330,582 5,547,595 5,390,186 5,344,215 5,181,643 4,548,674 4,321,260 3,505,939 Totalbusiness-type activities expenses 20,736,954 23,290,103 24,193,642 22,502,417 23,015,138 22,297,154 21,957,175 20,700,473 18,822,724 16,565,806 Totalprimary government expenses 52,986,490$ 61,017,226$ 67,304,314$ 72,285,852$ 73,038,964$ 70,943,317$ 64,533,524$ 60,790,668$ 57,521,663$ 49,544,676$ Program Revenues (see Schedule 3) Governmentalactivities: Charges for services: Generalgovernment 855,997$ 1,339,978$ 1,076,171$ 1,076,152$ 1,137,111$ 978,440$ 1,221,652$ 1,476,260$ 539,150$ 341,098$ Public safety 661,454 407,871 592,952 621,490 623,483 592,567 517,742 450,057 508,709 1,240,792 Public works 879,340 703,948 474,124 388,237 859,348 1,697,041 2,836,987 2,542,293 2,316,181 1,522,550 Parks and recreation 1,192,894 1,337,034 1,319,042 1,187,022 1,156,550 1,791,969 1,618,401 1,640,881 1,287,849 1,181,314 Other 403,728 398,004 301,631 386,317 448,970 - - 1,429 - - Operating grants and contributions 15,128,681 2,125,258 2,441,258 2,796,402 3,366,714 2,572,995 2,344,534 2,719,200 2,234,947 3,286,244 Capitalgrants and contributions 4,323,246 651,077 1,492,542 2,257,720 1,480,622 1,991,493 1,492,565 546,563 514,534 714,594 Totalgovernmentalactivities program revenues 23,445,340 6,963,170 7,697,720 8,713,340 9,072,798 9,624,505 10,031,881 9,376,683 7,401,370 8,286,592 Business-type activities: Charges for services: Water 7,421,931 6,631,136 6,466,678 6,384,464 6,630,287 6,341,560 6,433,014 6,406,197 4,933,151 4,622,425 Sewer 12,522,826 10,934,425 8,407,237 8,117,101 10,304,507 12,370,603 12,007,771 9,955,355 8,402,521 7,474,704 Refuse Collection 2,697,879 5,442,977 5,526,939 5,635,222 5,554,993 5,454,193 5,240,389 4,723,623 3,919,872 3,722,449 Capitalgrants and contributions 769,406 268,029 192,260 235,742 214,617 566,411 1,829,074 1,186,735 1,028,338 3,348,132 Totalbusiness-type activities program revenues 23,412,042 23,276,567 20,593,114 20,372,529 22,704,404 24,732,767 25,510,248 22,271,910 18,283,882 19,167,710 Totalprimary government program revenues 46,857,382$ 30,239,737$ 28,290,834$ 29,085,869$ 31,777,202$ 34,357,272$ 35,542,129$ 31,648,593$ 25,685,252$ 27,454,302$ (continued) Fiscal Year S-5 City ofRohnert Park Changes in Net Position (Unaudited) Last Ten Fiscal Years (Continued) (accrual basis of accounting) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Net (Expense)/Revenue Governmentalactivities (8,804,196)$ (30,763,953)$ (35,412,951)$ (41,070,095)$ (40,951,028)$ (39,021,658)$ (32,544,468)$ (30,713,512)$ (31,297,569)$ (24,692,278)$ Business-type activities 2,675,088 (13,536)(3,600,528)(2,129,888)(310,734)2,435,613 3,553,073 1,571,437 (538,842)2,601,904 Totalprimary government net expense (6,129,108)$(30,777,489)$(39,013,479)$(43,199,983)$(41,261,762)$(36,586,045)$(28,991,395)$(29,142,075)$(31,836,411)$(22,090,374)$ General Revenues and Other Changes in Net Position Governmentalactivities: Taxes Property taxes 3,517,309$ 16,106,337$ 15,595,902$ 16,632,581$ 16,989,860$ 17,054,597$ 16,928,529$ 15,504,905$ 13,810,490$ 12,900,727$ Franchise taxes 1,682,427 1,695,706 1,500,461 1,700,371 1,411,622 1,440,749 1,428,827 1,308,839 1,263,721 1,725,402 Sales taxes 9,555,854 9,062,981 8,237,144 5,735,600 6,172,593 7,236,048 7,707,375 7,386,925 6,953,294 6,834,708 Motor vehicle license fees 2,630,122 2,722,876 2,908,809 2,947,584 3,042,186 3,142,034 3,074,869 2,572,107 2,804,619 1,968,325 Other taxes 2,329,689 2,054,212 1,816,893 1,574,857 1,812,696 2,016,907 1,606,108 1,855,821 931,074 1,776,800 RentalIncome - - - - 31,823 - - - - 803,898 Investment earnings 38,876 962,474 1,605,298 2,538,119 3,726,188 4,792,727 3,155,613 1,964,903 1,064,234 1,126,080 Gain (Loss) on sale of capitalassets - - - (159,537) 997,720 4,778,278 - 1,109,814 974,079 2,779,073 Gain (Loss) on retirement of bonds - - - - 759,614 - - - - Other 4,348,120 181,941 415,518 176,370 197,023 311,425 217,520 - - - Transfers (171,499) 65,415 (255,089) (25,807) 526,648 573,812 294,438 Extraordinary item - dissolution of RDA -23,719,400 -----277,474 (238,760)114,633 Totalgovernmentalactivities 23,930,898 56,571,343 31,824,937 31,120,138 35,667,973 41,346,577 34,413,279 31,980,788 27,562,751 30,029,646 Business-type activities: Investment earnings 71,242 80,257 109,076 168,124 352,519 458,866 426,769 586,583 263,349 146,546 Transfers 171,499 (65,415)255,089 25,807 (526,648)(518,348)(294,438)(277,474)238,760 (114,633) Totalbusiness-type activities 242,741 14,842 364,165 193,931 (174,129)(59,482)132,331 309,109 502,109 31,913 Totalprimary government 24,173,639$56,586,185$32,189,102$31,314,069$35,493,844$41,287,095$34,545,610$32,289,897$28,064,860$30,061,559$ Change in Net Position Governmentalactivities 15,126,702$ 25,807,390$ (3,588,014)$ (9,949,957)$ (5,283,055)$ 2,324,919$ 1,868,811$ 1,267,276$ (3,734,818)$ 5,337,368$ Business-type activities 2,917,829 1,306 (3,236,363)(1,935,957)(484,863)2,376,131 3,685,404 1,880,546 (36,733)2,633,817 Totalprimary government 18,044,531$25,808,696$(6,824,377)$(11,885,914)$(5,767,918)$4,701,050$5,554,215$3,147,822$(3,771,551)$7,971,185$ (concluded) Source: City Finance Department Fiscal Year S-6 City of Rohnert Park Program Revenues by Function/Program (Unaudited) Last Ten Fiscal Years (accrual basis of accounting) 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 Function/Program Governmentalactivities: Generalgovernment 1,030,084$ 1,636,799$ 1,147,579$ 1,230,469$ 1,842,155$ 3,416,683$ 4,104,573$ 2,683,313$ 2,710,589$ 2,667,970$ Public safety 1,257,721 1,008,050 910,988 1,626,916 1,477,094 858,919 748,521 729,783 727,990 1,448,729 Public works 6,447,742 2,583,283 4,018,480 1,519,461 4,081,609 2,887,783 3,117,622 3,412,799 2,461,662 1,632,181 Parks and recreation 14,306,065 1,337,034 1,319,042 1,691,952 1,156,550 1,791,969 1,618,401 1,655,338 1,287,849 1,181,314 Other 403,728 398,004 301,631 386,822 515,390 669,151 442,764 895,450 213,280 1,356,398 Subtotalgovernmentalactivities 23,445,340 6,963,170 7,697,720 6,455,620 9,072,798 9,624,505 10,031,881 9,376,683 7,401,370 8,286,592 Business-type activities: Water 7,432,612 6,775,045 6,466,678 6,384,464 6,794,666 6,388,188 6,330,481 6,530,394 5,187,983 4,987,705 Wastewater 13,281,551 11,058,545 8,599,497 8,352,843 10,354,745 12,890,386 13,590,308 11,017,893 9,176,027 10,457,556 Refuse 2,697,879 5,442,977 5,526,939 5,635,222 5,554,993 5,454,193 5,240,389 4,723,623 3,919,872 3,722,449 Subtotalbusiness-type activities 23,412,042 23,276,567 20,593,114 20,372,529 22,704,404 24,732,767 25,161,178 22,271,910 18,283,882 19,167,710 Totalprimary government 46,857,382$30,239,737$28,290,834$26,828,149$31,777,202$34,357,272$35,193,059$31,648,593$25,685,252$27,454,302$ Fiscal Year S-7 City of Rohnert Park Fund Balances, Governmental Funds (Unaudited) Last Ten Fiscal Years (modified accrual basis of accounting) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 GeneralFund (1)Nonspendable N/A N/A N/A N/A N/A N/A N/A 2,382,742$ 2,360,946$ 2,719,913$ (1)Restricted N/A N/A N/A N/A N/A N/A N/A 927,747 2,429,224 2,041,125 (1)Committed N/A N/A N/A N/A N/A N/A N/A 3,592,593 - - (1)Assigned N/A N/A N/A N/A N/A N/A N/A 1,567,135 3,553,613 2,391,104 (1)Unassigned N/A N/A N/A N/A N/A N/A N/A - 1,208,071 4,100,959 Reserved 2,626,791$ 2,943,767$ 2,805,375$ 3,904,011$ 3,233,155$ 2,578,952$ 2,466,224$ - - - Unreserved 15,782,442 15,385,235 15,225,455 13,083,633 13,186,254 9,589,701 6,871,421 - - - Totalgeneralfund 18,409,233$ 18,329,002$ 18,030,830$ 16,987,644$ 16,419,409$ 12,168,653$ 9,337,645$ 8,470,217$ 9,551,854$ 11,253,101$ AllOther GovernmentalFunds (1)Nonspendable N/A N/A N/A N/A N/A N/A N/A 20,231,490$ 10,519,393$ 10,613,660$ (1)Restricted N/A N/A N/A N/A N/A N/A N/A 26,492,563 16,816,229 29,433,741 (1)Committed N/A N/A N/A N/A N/A N/A N/A 2,895,378 2,710,553 2,604,735 (1)Assigned N/A N/A N/A N/A N/A N/A N/A - - - (1)Unassigned N/A N/A N/A N/A N/A N/A N/A (311,900) (473,022) (465,303) Reserved 11,986,252$ 11,807,568$ 13,321,727$ 73,308,593$ 68,299,779$ 56,532,084$ 62,746,031$ - - - Unreserved, reported in: Specialrevenue funds 2,567,278 2,537,723 3,730,841 4,520,308 2,910,150 3,249,461 3,237,597 - - - Capitalprojects funds 7,106,995 7,607,850 6,653,690 8,154,368 6,034,588 5,013,206 (600,372) - - - Totalallother governmentalfunds 21,660,525$ 21,953,141$ 23,706,258$ 85,983,269$ 77,244,517$ 64,794,751$ 65,383,256$ 49,307,531$ 29,573,153$ 42,186,833$ Source : City Finance Department (1)New Fund Balance categories under GASB 54 Fiscal Year S-8 City ofRohnert Park Changes in Fund Balances, Governmental Funds (Unaudited) Last Ten Fiscal Years (modified accrual basis of accounting) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Revenues Taxes (see Schedule 6) 23,265,761$ 23,729,707$ 26,055,840$ 28,010,839$ 27,748,301$ 26,386,771$ 25,643,409$ 27,150,400$ 28,919,237$ 17,085,279$ Intergovernmental 4,677,326 4,697,723 4,385,363 6,470,275 6,789,040 7,251,897 5,607,308 6,114,398 5,506,724 5,913,576 Interest and rentals 1,934,571 1,726,379 2,214,033 3,434,813 4,669,700 4,208,902 3,045,486 2,146,774 1,462,569 373,516 Charges for services 1,746,714 1,708,557 2,461,399 2,312,537 2,531,523 1,812,427 1,823,791 1,952,202 1,649,569 1,769,053 Licenses, permits and fees 2,376,101 2,083,725 1,796,443 2,550,850 1,816,859 837,678 870,585 888,402 1,129,495 14,407,014 Specialassessment collection 160,866 327,225 306,495 210,435 - - - - - - Fines, forfeitures and penalties 174,550 181,727 216,368 197,134 159,701 212,849 193,392 146,940 184,386 200,266 Donations and miscellaneous 1,496,736 1,023,983 1,656,272 1,241,335 1,780,818 1,512,347 1,148,005 518,210 876,716 7,581,291 Totalrevenues 35,832,625 35,479,026 39,092,213 44,428,218 45,495,942 42,222,871 38,331,976 38,917,327 39,728,697 47,329,995 Expenditures Generalgovernment 8,230,662 11,480,332 11,184,075 12,654,518 12,694,183 12,731,601 15,592,370 13,914,331 12,969,980 6,909,977 Public safety 12,601,586 14,346,107 15,442,477 16,126,814 19,414,226 18,978,007 16,117,857 14,687,084 13,788,261 13,884,510 Public works 1,852,072 1,962,617 1,841,831 2,085,443 2,255,776 1,715,606 1,643,398 656,651 726,480 1,242,943 Parks and recreation 2,419,161 2,611,590 2,875,257 2,983,531 3,248,052 3,062,625 2,266,260 2,270,907 2,312,924 2,300,901 Other 997,196 1,094,895 1,187,748 889,073 902,319 841,126 646,355 417,011 587,931 704,021 (continued) Fiscal Year S-9 City of Rohnert Park Changes in Fund Balances, Governmental Funds (Unaudited) Last Ten Fiscal Years (Continued) (modified accrual basis of accounting) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Capitaloutlay 3,114,073$ 3,098,196$ 5,065,505$ 7,324,188$ 13,940,133$ 11,268,721$ 3,523,917$ 174,963$ 1,748,317$ 7,165,820$ Debt service Interest 1,242,520 1,179,094 1,196,955 1,188,507 3,345,671 3,924,833 3,254,018 3,028,229 2,463,746 420,257 Cost of issuance - - - 1,316,741 - - - - - - Principal 1,731,907 1,694,815 1,896,222 2,039,651 3,734,038 11,682,136 16,043,885 1,604,925 1,188,430 460,000 Totalexpenditures 32,189,177 37,467,646 40,690,070 46,608,466 59,534,398 64,204,655 59,088,060 36,754,101 35,786,069 33,088,429 Excess of revenues over (under) expenditures 3,643,448 (1,988,620) (1,597,857) (2,180,248) (14,038,456) (21,981,784) (20,756,084) 2,163,226 3,942,628 14,241,566 Other Financing Sources (Uses) Issuance of debt 6,950,000 - - 61,440,000 - - - - - - Discount on debt - - - (391,516) - - - - - - Premium on debt - - - 1,344,163 - - - - - - Refunding bonds issued - - - - - 759,614 - - - - Cost of defeasance - - - - - - - - - - Payments to escrow agent (7,078,675) - - - - - - - - - Proceeds from the sale of capitalassets 3,269,170 1,263,800 1,956,704 - 5,201,717 3,995,000 1,255,263 - - - Lease proceeds - 1,175,965 818,624 - - - - - - - Transfers in 7,056,503 9,150,655 9,245,675 12,377,738 21,953,933 24,118,981 24,626,604 10,206,357 30,274,573 5,005,015 Transfers out (6,941,870)(9,389,415)(8,968,201)(12,083,300)(21,380,121)(23,592,333)(24,652,411)(10,461,446)(30,309,158)(5,274,014) Totalother financing sources (uses) 3,255,128 2,201,005 3,052,802 62,687,085 5,775,529 5,281,262 1,229,456 (255,089)(34,585)(268,999) Net change in fund balances 6,898,576$212,385$1,454,945$60,506,837$(8,262,927)$(16,700,522)$(19,526,628)$1,908,137$3,908,042$13,972,567$ Debt service as a percentage of noncapital expenditures 10.2% 8.4% 8.7% 11.6% 15.5% 29.5% 34.7% 12.7% 10.7% 3.4% Source: City Finance Department (concluded) Fiscal Year S-10 City ofRohnert Park Tax Revenues by Source, Governmental Funds (Unaudited) Last Ten Fiscal Years Real Fiscal (a) (b) Property Year Property Sales & Use Franchise Occupancy Transfer Total 2004 2,517,925$ 6,834,708$ 1,725,403$ 1,367,259$ 265,430$ 12,710,725$ 2005 2,739,642 6,953,294 1,263,721 1,451,781 250,421 12,658,859 2006 3,127,448 7,386,925 1,308,839 1,601,587 253,584 13,678,383 2007 3,167,241 7,707,375 1,428,827 1,771,527 174,581 14,249,551 2008 3,199,831 7,236,048 1,440,749 1,899,362 117,545 13,893,535 2009 3,029,029 6,172,593 1,411,622 1,722,049 90,647 12,425,940 2010 2,845,643 5,735,600 1,700,371 1,574,857 84,087 11,940,558 2011 2,679,110 8,237,144 1,500,461 1,747,659 69,234 14,233,608 2012 3,252,056 9,062,981 1,695,706 1,940,536 113,677 16,064,956 2013 3,517,309 9,555,854 1,682,427 2,202,885 126,804 17,085,279 Change 39.7% 39.8% -2.5% 61.1% -52.2% 42.1% Notes: (a) The City direct tax rate of 0.50% (Rohnert Park EssentialCity Services Temporary Funding Measure E) was approved by Rohnert Park citizens on June 8, 2010 and went into effect on October 1, 2010. 2004–2013 (b) In FY 2004, the City received a large payment from Empire Waste Management for underpayment of prior year franchise fees. In FY 2010 the City received a donation for franchise fees S-11 City ofRohnert Park Assessed Value and Estimated Actual Value ofTaxable Property (Unaudited) Last Ten Fiscal Years (in thousands of dollars) Real Property Personal Property Total Percentage of City's Portion Fiscal Assessed/Market Assessed/Market Assessed/Market Change in ofDirect Year Value Value Value Market Value Basic Tax Rate 2004 3,187,705$ not available 3,187,705$ not available 7.838% 2005 3,256,849 132,125 3,388,974 6.31% 7.773% 2006 3,496,707 153,029 3,649,736 7.69% 7.612% 2007 3,685,609 187,036 3,872,645 6.11% 7.501% 2008 3,957,436 121,053 4,078,489 5.32% 7.320% 2009 3,921,550 116,899 4,038,449 -0.98% 7.092% 2010 3,782,228 118,715 3,900,943 -3.40% 6.934% 2011 3,605,471 114,596 3,720,067 -4.64% 6.754% 2012 3,611,567 107,759 3,719,326 -0.02% 6.884% 2013 3,509,762 103,730 3,613,492 -2.85% 6.687% Source:Sonoma County Auditor-Controller Notes: (a) The State of California Constitution Article XIII A provides that the combined maximum property tax rate on any given property may not exceed one percent of its assessed value unless an additionalamount for general obligation debt has been approved by voters. Assessed value is calculated at 100 percent of market value as defined by Article XIII A and may be adjusted no more than two percent per year unless the property is improved, sold or transferred. Because of this method of assessment, the City does not have a reasonable basis for estimating the actualvalue of taxable property and this information is not presented above. (b) The State Legislature has determined the method of distribution of receipts from a one percent tax levy among the counties, cities, schooldistricts and other districts. The City's portion of the Direct Basic Tax Rate is the AB-8 (Prop 13) legislated amounts. S-12 City ofRohnert Park Direct and Overlapping Property Tax Rates (Unaudited) Last Ten Fiscal Years (rate per $1,000 of assessed value) Rohnert Park Santa Santa Basic Cotati Warm Rosa Rosa Bellvue Total Fiscal Direct School Springs Junior High School Tax Year Rate ( b ) District Dam College School District Total Rate ( c ) 2004 1.00 0.11 0.007 0.025 0.054 0.025 0.2212 1.2212 2005 1.00 0.11 0.007 0.025 0.054 0.025 0.2212 1.2212 2006 1.00 0.11 0.007 0.025 0.054 0.025 0.2212 1.2212 2007 1.00 0.11 0.007 0.025 0.054 0.250 0.4462 1.4462 2008 1.00 0.11 0.007 0.025 0.053 0.240 0.4350 1.4350 2009 1.00 0.11 0.007 0.025 0.049 0.024 0.2150 1.2150 2010 1.00 0.11 0.007 0.025 0.049 0.030 0.2391 1.2391 2011 1.00 0.11 0.007 0.025 0.049 0.054 0.2450 1.2450 2012 1.00 0.11 0.007 0.025 0.058 0.068 0.2679 1.2679 2013 1.00 0.10 0.007 0.021 0.058 0.071 0.2564 1.2564 ( c ) Rates for TRA 007-000 through 007-019 are represented in this table. Source:Sonoma County Auditor-Controller Notes: ( a ) Overlapping rates are those of localand county governments that apply to property owners within the City of Rohnert Park. Not alloverlapping rates apply to allRohnert Park property owners; for example, schooldistricts' rates apply only to property owners within those districts' geographic boundaries. Overlapping Rates ( a ) ( b ) In 1978, California voters passed Proposition 13, which set the property tax rate at a 1% fixed amount. This 1% is shared by alltaxing agencies for which the subject property resides within. In addition to the 1% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. S-13 City ofRohnert Park Property Tax Levies and Collections (Unaudited) Last Ten Fiscal Years Fiscal Year Taxes Levied Collections Ended for the in Subsequent June 30,Fiscal Year Amount Years Amount 2004 2,303,177$ 2,295,714$ 99.68 5,738$ 2,301,452$ 99.93 2005 2,747,507 2,739,642 99.71 - 2,739,642 99.71 2006 3,127,448 3,113,048 99.54 - 3,113,048 99.54 2007 3,167,241 3,148,920 99.42 - 3,148,920 99.42 2008 3,200,856 3,188,844 99.62 - 3,188,844 99.62 2009 3,029,027 3,018,252 99.64 - 3,018,252 99.64 2010 2,845,643 2,839,175 99.77 - 2,839,175 99.77 2011 2,679,110 2,668,030 99.59 - 2,668,030 99.59 2012 2,749,247 2,743,934 99.81 - 2,743,934 99.81 2013 2,426,301 2,405,204 99.13 - 2,405,204 99.13 Source: Sonoma County Auditor-Controller Note: The City participates in the County Teeter Plan whereby alltaxes are remitted to the City each year. Amounts reported are for secured property taxes only Collected within the ofLevy Percentage Total Collections to Date ofLevy Percentage Fiscal Year ofthe Levy S-14 City of Rohnert Park Taxable Sales by Category (Unaudited) Last Ten Years (in thousands of dollars) 2004 2005 2006 2007Q3 (a) 2008Q3(a) 2009Q3(a) 2010Q3(a) 2011Q3(a) 2012Q2(a) 2013Q2(a) Allother outlets 75,051$ 82,371$ 83,199$ 95,037$ 88,437$ 8,868$ 6,602$ 5,736$ 6,351$ 5,310$ Apparelstores 13,691 13,927 14,154 14,504 13,838 31,548 32,602 33,076 32,105 34,951 Auto dealers and supplies 21,451 19,923 20,365 20,065 17,967 47,999 53,972 46,748 47,953 53,629 Building materials and farm tools 126,268 126,436 125,132 103,043 77,368 208,332 186,030 197,156 214,590 244,173 Eating and drinking establishments 68,442 72,279 73,091 73,939 70,627 183,167 178,472 173,980 178,735 194,188 Food stores 38,929 39,765 40,923 36,466 38,581 85,244 84,092 90,970 93,845 86,038 Generalmerchandise 179,419 191,443 194,974 199,921 206,342 523,130 557,239 534,863 581,686 595,932 Home furnishings and appliances 36,601 32,707 29,879 32,777 27,509 48,183 68,920 65,513 59,911 69,850 Other retailstores 71,228 76,111 74,799 64,939 57,796 134,960 256,404 133,321 97,021 87,546 Service stations 31,960 34,155 36,395 39,181 45,281 89,151 82,737 96,876 107,498 136,050 Packaged Liquor and Drug Stores - - - 7,558 7,988 15,744 16,921 16,867 17,185 19,134 Total 663,040$ 689,114$ 692,912$ 687,430$ 651,734$ 1,376,326$ 1,523,991$ 1,395,106$ 1,436,880$ 1,526,801$ City direct sales tax rate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.50% 0.50% 0.50% 0.50% Note: (a) Retailsales information is complied on a quarterly basis, not year to date, therefore data presented is for the quarter indicated in the column header. Source:MuniServices Sales Tax & Economic Review for the City of Rohnert Park S-15 City ofRohnert Park Direct and Overlapping Sales Tax Rates (Unaudited) Last Ten Fiscal Years Fiscal Year State 2004 - 1.25% 7.25% 2005 - 0.75% 7.25% 2006 - 0.75% 7.25% 2007 - 0.75% 7.25% 2008 - 0.75% 7.25% 2009 - 0.75% 8.25% 2010 - 0.75% 8.25% 2011 0.0% to 0.5% 0.75% 8.25% 2012 0.50% 0.75% 7.25% 2013 0.50% 0.75% 7.50% Notes: Overlapping Rates The City direct tax rate of 0.50% (Rohnert Park EssentialCity Services Temporary Funding Measure E) was approved by Rohnert Park citizens on June 8, 2010 and went into effect on October 1, 2010. Rate Direct City County Sonoma S-16 This table should be the top ten property tax assessment, not sales tax remitters. Change in FY 14 City ofRohnert Park Principal Sales Tax Remitters (Unaudited) Current Year and Nine Years Ago Taxpayer Business Type Taxpayer Business Type Costco Wholsale GeneralMerchandise Home Depot Building Materials WalMart Store GeneralMerchandise Costco Wholsale GeneralMerchandise Home Depot Building Materials WalMart Store GeneralMerchandise Target Stores GeneralMerchandise Target Stores GeneralMerchandise McPhail's Applicances Home Funishings & Appliances Target Stores Home Funishings & Appliances ShellService Station Service Stations WW Grainger Building Materials Safeway Stores Food Stores Food Maxx Food Stores WW Grainger Building Materials Chevron Service Stations Service Stations Pape Machinery Building Materials JE Higgins Lumbar Company Building Materials Chevron Service Stations Service Stations Safeway Stores Food Stores Burlington Coat Factory ApparalStores Linens N Things GeneralMerchandise Exxon Service Stations Service Stations Raley's Supermarket Food Stores Rotten Robbie Service Stations Service Stations ShellService Station Service Stations Castino Restaurant Equipment Supply Other RetailStores Hertz Equipment Rental Leasing Raley's Supermarket Food Stores United Furniture Home Funishings & Appliances 7-Eleven Food Store Food Stores Castino Restaurant Equipment Supply Other RetailStores Ross Stores ApparalStores Rotten Robbie Service Stations Service Stations Petsmart GeneralMerchandise Petsmart GeneralMerchandise Ashley Furniture Home Store Home Funishings & Appliances Exxon Service Stations Service Stations Food Maxx Food Stores O'DellPrinting Company Light Industry Olive Garden Restaurant Restaurants Longs Drug Stores Drug Stores McDonalds Restauratns Restaurants Les Schwab Tire Center Auto Parts & Repairs CVS Pharmacy Drug Stores Olive Garden Restaurant Restaurants In-N-Out Burgers Restaurants In-N-Out Burgers Restaurants Galleher Corporation Building Materials Outback Steakhouse Restaurants Note: Sales tax paid is confidentialinformation and cannot be reported. Source:MuniServices Sales Tax & Economic Review for the City of Rohnert Park 2013 2004 S-17 City ofRohnert Park Ratios ofOutstanding Debt by Type (Unaudited) Last Ten Fiscal Years (dollars in thousands, except per capita) ( b ) ( c ) ( c ) ( d ) ( a ) Certificates Lease Special Water Sewer Total ( d ) Fiscal Redevelopment of Revenue Assessment Capital RevenueCertificates of Primary Per Year Bonds Participation Bonds Bonds Leases Bonds Participation Government Capita 2004 23,347$ 4,545$ 6,950$ 1,185$ 449$ 2,010$ -$ 38,486$ 2.35 914 2005 23,244 4,405 6,710 910 1,485 6,930 13,000 56,684 3.33 1,335 2006 23,082 4,265 6,485 620 2,027 6,725 13,000 56,204 3.12 1,306 2007 84,351 4,115 6,255 190 1,778 6,515 12,770 115,974 9.69 2,700 2008 82,253 3,960 6,020 - 1,539 6,305 12,530 112,607 9.69 2,615 2009 72,120 3,800 5,780 - 1,212 6,085 12,285 101,282 9.40 2,354 2010 59,513 3,635 5,535 - 982 5,860 12,030 87,555 8.14 2,017 2011 51,553 3,460 5,280 - 846 5,630 11,765 78,534 7.04 1,810 2012 - 3,280 465 - 705 5,390 11,624 21,464 6.31 524 2013 - 3,090 473 594 5,145 11,340 20,642 1.75 503 Notes: Details regarding the city's outstanding debt can be found in the notes to the financialstatements. (a) Due to the FY12 dissolution of the RDA, the bond liability was transferred to the Successor Agency. (b) Due to the FY12 dissolution of the RDA, 90% of the LRRB bond liablity was transferred to the Successor Agency. (c ) In FY05, the city issued $13 million of sewer certificates of participation and $5 million of water revenue bonds. Government-type Activities Business-type Activities (d) See Schedule S-22 for personalincome and population data. These ratios are calculated using personalincome and population for the prior calendar year. Percentage ofPersonal Income S-18 City of Rohnert Park Ratios of General Bonded Debt Outstanding (Unaudited) Last Ten Fiscal Years (dollars in thousands, except per capita) Fiscal (a) Redevelopment Per Year Tax Allocation Bonds Total Capita 2004 23,347$ 23,347$ 0.7324 554.21 2005 23,244 23,244 0.6859 547.63 2006 23,082 23,082 0.6324 536.45 2007 84,351 84,351 2.1781 1,963.52 2008 82,253 82,253 2.0168 1,910.11 2009 72,120 72,120 1.7858 1,676.43 2010 59,513 59,513 1.5256 1,371.33 2011 51,553 51,553 1.3858 1,198.35 2012 - - - - 2013 - - - - Notes: Details regarding the city's outstanding debt can be found in the notes to the financialstatements. (a) FY12 Upon the dissolution of the Redevelopment Agency, the GeneralObligation Bonded debt was transferred to the Redevelopment Successor Agency. Percentage of General Bonded Debt Outstanding Property Value of Actual Taxable S-19 City of Rohnert Park Direct and Overlapping Governmental Activities Debt (Unaudited) As ofJune 30, 2013 (dollars in thousands) Estimated Share of Estimated Direct and Debt Percentage Overlapping Governmental Unit Outstanding Applicable a Debt Debt repaid with property taxes Cotati-Rohnert Park Unified SchoolDistrict #14R 25,765,000$ 79.152% 20,393,403$ #15R 5,870,000 79.152% 4,646,197 #16 9,460,000 79.152% 7,487,739 #17R 13,645,000 79.152% 10,800,232 #18R 5,730,000 79.152% 4,535,385 Sonoma County Junior College District #1R 3,350,280 5.624% 188,423 #2 23,510,000 5.624% 1,322,222 #3 3,615,000 5.624% 203,311 #4 16,990,000 5.624% 955,532 #2R 133,215,000 5.624% 7,492,123 Subtotal, overlapping debt 58,024,566 City direct debt 4,158,348 Total direct and overlapping debt 62,182,914$ Notes: Source:Sonoma County Auditor-Controller For debt repaid with property taxes, the percentage of overlapping debt applicable is estimated using taxable assessed property values. Applicable percentage were estimated by determining the portion of another governmentalunit's taxable assessed value that is within the city's boundaries and dividing it by each unit's totaltaxable assessed value. Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the resident and business of the city. S-20 City of Rohnert Park Legal Debt Margin Information (Unaudited) Last Ten Fiscal Years (dollars in thousands) Assessed value 3,613,492$ Debt limit (15% of assessed value) 542,024 Debt applicable to limit: Generalobligation bonds - Legaldebt margin 542,024$ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Debt limit 487,694$ 526,849$ 534,506$ 580,879$ 611,773$ 612,688$ 591,965$ 564,732$ 564,587$ 542,024$ Totalnet debt applicable to limit ---------- Legaldebt margin 487,694$526,849$534,506$580,879$611,773$612,688$591,965$564,732$564,587$542,024$ Totalnet debt applicable to the limit as a percentage of debt limit 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Fiscal Year Legal Debt Margin Calculation for Fiscal Year 2013 S-21 City of Rohnert Park Pledged-Revenue Coverage (Unaudited) Last Ten Fiscal Years (dollars in thousands) Utility Less: Net Utility Less: Net Special Fiscal Service Operating Available Service Operating Available Assessment Year Charges Expenses Revenue Principal Interest Coverage Charges Expenses Revenue Principal Interest Coverage Collections Principal Interest Coverage 2004 4,622$ 5,061$ (439)$ 80$ 72$ (3)$ -$ -$ -$ -$ -$ -$ 317$ 295$ 56$ 0.90 2005 4,933 5,031 (98) 80 70 (0.65) - - - - - - 340 270 46 1.08 2006 6,406 5,480 926 205 237 2.10 9,955 9,112 843 - - n/a 319 290 37 0.98 2007 6,084 5,700 384 210 262 0.81 12,008 9,501 2,507 - - n/a 456 430 21 1.01 2008 6,342 6,851 (509) 215 257 (1.08) 12,371 9,244 3,127 - - n/a - - - - 2009 6,630 5,715 915 220 251 1.94 10,304 10,740 (436) - - n/a - - - - 2010 6,384 5,445 939 225 245 2.00 8,117 10,682 (2,565) - - n/a - - - - 2011 6,360 6,542 (182) 230 238 (0.39) 8,180 11,510 (3,330) - - n/a - - - - 2012 6,631 6,273 358 240 231 0.76 10,934 8,984 1,950 - - n/a - - - - 2013 7,422 5,091 2,331 245 223 4.98 12,523 10,168 2,355 - - n/a - - - - Notes: Details regarding the city's outstanding debt can be found in the notes to the financialstatements. Operating expenses do not include interest, depreciation or amortization expenses. (a) The Sewer Revenue Certificates of Participation were issued by the Rohnert Park Financing Authority pursuant to an Installment Purchase Agreement with the City of Rohnert Park. AllNet Revenues and amounts on deposit in the Revenue Fund (other than amounts on deposit therein required to pay Operation and Maintenance Costs) are irrevocably pledged to the payment of the Installment Payments and the Net Revenues shallnot be used for any other purpose while any of the Installment payments remain unpaid. Special Assessment Bonds Debt ServiceDebt Service Water Revenue Bonds Sewer Revenue Certificate of Participation (a) Debt Service S-22 City ofRohnert Park Demographic and Economic Statistics (Unaudited) Last Ten Calendar Years Personal Income Per County City Calendar (thousands Capita Median School UnemploymentUnemployment Year Population of dollars)Income Age Enrollment Rate Rate 2003 42,198 1,554,743$ 36,844$ 36 7,678 5.5% 4.8% 2004 42,127 1,638,782 38,901 38.9 7,479 5.0% 5.3% 2005 42,445 1,703,333 38,793 38.9 7,260 4.5% 4.1% 2006 43,027 1,803,380 43,318 33.1 7,023 4.0% 3.9% 2007 42,959 1,197,439 26,298 32.9 6,868 4.3% 3.9% 2008 43,062 1,243,889 28,886 33.1 6,654 5.7% 6.4% 2009 43,020 1,224,435 28,462 32.3 6,429 9.70% 10% 2010 43,398 1,196,136 27,562 33.1 6,193 10.00% 10.2% 2011 40,971 1,113,510 27,178 33.8 6,003 10.30% 10.1% 2012 41,034 1,143,864 27,876 34.9 5,907 8.30% 8.1% Source: Population:www.dof.ca.gov/research/demographic; Per Capita Income:Sonoma County Economic Development Board Median Age:2004-2006 US Census Bureau. 2007-2013 Sonoma County Economic Development Board; SchoolEnrollment:Cotati-Rohnert Park Unified SchoolDistrict; Unemployment Rates:Sonoma County Economic Development Board S-23 City ofRohnerk Park Principal Employers (Unaudited) Current Year and Four Years Ago Percentage Percentage ofTotal City of Total City Employer Employees Rank Employment Employees Rank Employment Sonoma State University 1,000 1 4.22% 1,483 1 13.79% Cotati-Rohnert Park Unified SchoolDistrict 461 2 1.95% - - Wal-Mart Store #1755 263 3 1.11% 277 3 2.58% Home Depot #641 238 4 1.00% 238 4 2.21% City of Rohnert Park 231 5 0.97% 190 7 1.77% Parker Hannifin Corporation 182 6 0.77% 182 8 1.69% Costco Wholesale #659 179 7 0.76% 205 6 1.91% Pacific Bell 175 8 0.74% - - Target 852 162 9 0.68% 220 5 2.05% Comcast of East San Fernando Valley LP 158 10 0.67% - - State Farm Insurance 468 2 4.35% Cross Check - - 142 9 1.32% Masterwork Electronics - - 111 10 1.03% Total 3,049 12.86% 3,516 32.70% cotati TotalCity Employment 23,700 10,752 Source:2009 City of Rohnert Park Comprehensive AnnualReport 2013 City of Rohnert Park Business Licensing; http://www.sonoma.edu; http://www.crpusd.org 2013 TotalCity Employement from www.labormarketinfo.edd.ca.gov 20092013 S-24 City ofRohnert Park Full-time-Equivalent City Government Employees by Function/Program (Unaudited) Last Ten Fiscal Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Function/Program Generalgovernment City Manager's Office 4.00 5.00 5.00 7.00 7.00 7.00 6.70 5.85 6.00 6.40 Finance 10.00 11.00 12.00 12.00 12.00 11.00 11.00 9.75 10.00 10.50 Information Systems 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Planning (a) 2.00 2.00 3.00 3.00 3.00 3.00 1.70 - - - Development Services (a)- - - - - - - 11.00 11.00 11.08 Human Resource 2.00 2.00 2.00 2.00 2.00 3.00 2.25 2.25 2.25 2.25 Other 1.00 2.00 2.00 - - - - - - - Public Safety 100.00 106.00 107.00 109.00 110.00 110.00 90.75 83.75 80.75 81.25 Building Inspection (a) 2.00 2.00 3.00 3.00 3.00 3.00 2.30 - - - Public Works Engineering (a) 3.00 4.00 5.00 6.00 6.00 8.00 8.00 - - - Public Works 23.00 25.00 25.00 29.00 29.00 29.00 27.40 30.30 34.65 34.72 Park Maintenance (b) 7.00 6.00 5.00 4.00 5.00 5.00 6.60 - - - Parks and Recreation (b) 7.00 7.00 7.00 7.00 7.00 6.00 2.00 Community Services (b) - - - - - - - 5.10 5.30 8.51 Performing Arts Center 3.00 4.00 4.00 4.00 4.00 4.00 3.00 2.00 2.00 3.65 Total 166.00 178.00 182.00 188.00 190.00 191.00 163.70 152.00 153.95 160.36 Notes: (a) FY11 New Department combining Planning, Building Inspection and Engineering (b) FY11 New Department combining Park Maintenance and Parks and Recreation Full-time-Equivalent Employees as ofJune 30 S-25 City ofRohnert Park Operating Indicators by Function/Program (Unaudited) Last Ten Fiscal Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Function/Program Generalgovernment Building permits issued 634 736 574 663 650 515 575 622 658 722 Building inspections conducted not available 2,228 1,875 1,560 1393 1,664 815 1,168 902 946 Department of Public Safety - Police Physicalarrests 1,839 2,174 2,485 2,474 3,076 3,156 2,323 2,214 1819 2015 Parking violations 1,111 3,583 3,794 2,554 2,448 3,248 2,419 2,034 2106 2136 Traffic violations 265 286 264 1,402 1,695 1,452 1,438 1,232 1248 1539 Department of Public Safety - Fire Emergency responses 107 113 134 3,164 3,007 3,262 3,263 3,156 3325 3189 Inspections not available not available not available 1,713 1,869 1,966 1,555 2,031 1427 1268 Refuse collection Refuse collected (average tons per day) 65.3 61.3 64.3 68.2 59.7 58 53 49 54.35 51.37 Recyclables collected (average tons per day)27.4 27.5 30.9 31.4 28.89 29 18 19 22.64 23.45 Parks and recreation Sports & Fitness Center Attendance 135,259 136,490 119,803 111,655 124,261 101,253 125,321 112,330 110,710 114,138 Community Center Attendance 71,069 41,120 42,019 46,495 42,240 48,682 43,253 36,170 44,912 54,819 Library Volumes in collection 65,078 74,868 75,718 84,369 84,381 90,478 90,478 90,538 97,382 100,000 Water Water main breaks not available 2 2 0 1 3 1 1 1 1 Average daily consumption (millions of gallons) 6.18 5.42 5.00 4.90 4.4 4.4 3.9 3.9 3.94 4.43 Peak daily consumption (millions of gallons) 8.81 8.44 7.86 7.15 6.7 6.4 5.7 5.4 5.6 6.03 Wastewater Average daily sewage treatment (millions of gallons) 3.60 3.88 3.87 3.16 3.42 3.12 3.28 3.48 3.18 3.4 Source :Various City Departments; Sonoma County Library Fiscal Year S-26 City ofRohnert Park Capital Asset Statistics by Function/Program (Unaudited) Last Ten Fiscal Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Function/Program Department of Public Safety Public Safety Stations -Police & Fire combined 4 4 4 4 4 4 3 3 3 3 Public Safety Officers-Police & Fire combined 73 77 77 77 79 80 70 63 60 59 Refuse Collection Collection trucks 11 11 11 10 10 10 10 10 10 8 Street Sweepers 2 2 1 1 1 1 1 1 1 1 Other public works Streets (miles) 85.12 85.12 85.12 85.12 85.12 85.12 86.17 86.17 86.17 90.24 Streetlights 2,794 2,794 2,794 2,794 2,794 2,794 2817 2817 2817 2837 Parks and recreation Acreage 102 102 102 102 102 105 105 105 105 107 Playgrounds 30 30 30 30 30 25 25 24 24 24 Baseball/softballdiamonds 14 14 14 14 14 10 10 10 10 10 Soccer/footballfields 9 9 9 9 9 11 11 11 11 12 Tennis courts 25 25 25 25 25 26 26 25 25 25 Water Water mains (miles) 115.70 115.70 115.70 115.70 115.70 115.7 115.7 115.7 115.7 116.2 Fire hydrants not available not available 1,450 1,458 1,458 1,462 1462 1,462 1462 1470 Storage capacity (thousands of gallons) 4,374.6 4,374.6 4,374.6 4,374.6 4,374.6 4,374.6 4374.6 4,375 4375 4375 Wastewater Sanitary sewers (miles) 77.0 77.0 80.0 77.0 77.0 83.0 83.0 83.0 83 84.5 Storm sewers (miles) 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32 32.5 Treatment capacity (thousands of gallons) 4.44 5.11 5.41 3.13 3.83 3.13 3.28 3.28 4.46 4.45 Source:Various City Departments. Fiscal Year ROHNERT PARK FINANCING AUTHORITY (A Component Unit of the City of Rohnert Park, California) Independent Auditors'Reports, Management’s Discussion and Analysis, Basic Financial Statements and Supplemental Information For the Fiscal Year Ended June 30, 2013 ROHNERT PARK FINANCING AUTHORITY FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Table of Contents Pages Independent Auditors’ Report 1 Management’s Discussion and Analysis (Required Supplementary Information)3 Basic Financial Statements: Statement of Net Position 6 Statement of Revenues, Expenses and Change in Net Position 7 Statement of Cash Flows 8 Notes to Basic Financial Statements 9 Supplemental Information: Combining Schedule of Net Position by Bond Program 16 Combining Schedule of Revenues, Expenses and Changes in Net Position by Bond Program 17 Combining Schedule of Cash Flows by Bond Program 18 Other Report: 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 19 1 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO LAGUNA HILLS PALO ALTO PLEASANTON RANCHO CUCAMONGA RIVERSIDE SACRAMENTO INDEPENDENT AUDITORS'REPORT The Board of Directors Rohnert Park Financing Authority Rohnert Park, California Report on the Financial Statements We have audited the accompanying financial statements of the of Rohnert Park Financing Authority (the Authority), a component unit of the City of Rohnert Park, California, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes 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. Auditors' Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. Accordingly, we express no such opinion.An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 2 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Rohnert Park Financing Authority of the City of Rohnert Park, California,as of June 30, 2013, and the respective changes in financial position and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Implementation of New Accounting Standards As discussed in Note 1 to the financial statements, the Authority adopted Governmental Accounting Standards Board (GASB) Statement No. 63 -Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, effective July 1, 2012.Our opinion is not modified with respect to this matter. Individual Fund Financial Statements As discussed in Note 1, the financial statements present only the Rohnert Park Financing Authority and do not purport to, and do not, present fairly the financial position of the City of Rohnert Park,California, as of June 30, 2013,and the changes in its financial position, or, where applicable, its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, as listed on the table of contents,be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January XX, 2014,on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance. Pleasanton, California January XX, 2014 ROHNERT PARK FINANCING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 3 The following discussion and analysis of the City of Rohnert Park Financing Authority’s (Authority) financial performance provides an overview of its financial activities for the fiscal year ended June 30, 2013. Members of the City of Rohnert Park (City) Finance Department prepared this discussion and analysis. Please read it in conjunction with the Authority’s basic financial statements, which begin on page 6. Financial Highlights The Authority’s net position decreased by $145,390, from the prior year. Cash receipts from leases during the year totaled $1,458,603 and were used to pay debt service requirements for fiscal year 2013. Basic Financial Statements The basic financial statements consist of the Authority’s Enterprise Fund. The financial statements also include notes that explain some of the information in the financial statements and provide more detailed data. The Enterprise Fund is used to account for the financing of public capital improvements provided by the Authority to the City’s governmental operations. The financial statements provide both long-term and short-term financial information and information about cash flows. The Authority’s Enterprise Fund basic financial statements are as follows: 1.Statement of Net Position; 2.Statement of Revenues, Expenses and Change in Net Position; and 3.Statement of Cash Flows. The following table presents the Authority’s net position as of June 30, 2013 and 2012: 2013 2012 $ Change % Change Cur rent as sets 2,909,582$ 4,216,373$ (1,306,791)$ -31.0% No nc ur rent as sets 18,204,732 19,029,819 (825,087) -4.3% To tal as sets 21,114,314 23,246,192 (2,131,878) -9.2% Cur rent liabi lities 2,683,806 3,892,443 (1,208,637) -31.1% Lo ng-term liabi lities 18,427,519 19,205,370 (777,851) -4.1% To tal liabi lities 21,111,325 23,097,813 (1,986,488) -8.6% To tal ne t po sition restricted for de bt s ervice 2,989$ 148,379$ (145,390)$ -98.0% ROHNERT PARK FINANCING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 4 Total assets decreased by $2,131,878 from $23,246,192 to $21,114,314 during the fiscal year ended June 30, 2013. This is comprised of a decrease of $1,306,791 in current assets and a decrease of $825,087 in noncurrent assets. The decrease in current assets is primarily due to “project cash”bond draws to fund multiple capital projects. The decrease in noncurrent assets reflects the declining balance in the net investment in leases as the City pays the annual lease payments, as well as the amortization of the costs of issuance. Total liabilities reflect a decrease of $1,986,488 from the prior year. The decrease is primarily due to a $740,000 reduction in long-term debt as a result of scheduled debt service payments, as well as a $1,360,210 reduction in the amount due to the City of Rohnert Park from “project cash” bond draws. Use of the Authority’s net position is restricted for debt service. At June 30, 2013, total restricted net position reported is $2,989. The following table presents the Authority’s change in net position for the fiscal years ended June 30, 2013 and 2012: 2013 2012 $ Change % Change Ope rating revenue s: Le as e interest revenue 898,603$ 933,979$ (35,376)$ -3.8% Ope rating i nc ome 898,603 933,979 (35,376) -3.8% No no pe rating r evenue s(expe ns es): Investment income 10,072 4,153 5,919 142.5% Int erest expe ns e and fiscal char ge s (918,130) (957,964) 39,834 -4.2% To tal nonoperating e xpe ns es (908,058) (953,811) 45,753 -4.8% Tr ans fer out to Ci ty o f Ro hne rt Park (105,730) - (105,730) 0.0% Change s in ne t po sition (115,185) (19,832) (95,353) 480.8% Ne t po sition, be gi nni ng o f year 148,379 168,211 (19,832) -11.8% Restatement (Note 7)(30,205) - - -100% Ne t po sition, be gi nni ng o f year restated 118,174 168,211 (19,832) Ne t po sition, e nd o f ye ar 2,989$ 148,379$ (115,185)$ -77.6% Lease interest revenue decreased by $35,376 due to declining interest amounts due on bond debt service payments. Interest expense and fiscal charges decreased by $39,834 due to declining interest amounts due on bond debt service payments.Investment income decreased by $5,919 due to declining cash balances in the project funds. ROHNERT PARK FINANCING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS JUNE 30, 2013 5 Long-term Debt The long-term debt of the Authority at June 30, 2013 included $14,300,000 of outstanding certificates of participation (COPs) and $4,475,000 of outstanding lease revenue bonds. The long-term debt will be repaid through lease agreements with the City that are structured to meet principal and interest requirements when due. During the year, the outstanding debt was reduced by principal payments of $740,000. More detailed information about the Authority’s long-term debt is presented in Note 5 to the basic financial statements. The latest rating assigned by Standard & Poor’s is an “A+/Stable”rating for the 1999 Certificates of Participation, Rohnert Park Capital Facilities Project and the 2003 Lease Revenue Refunding Bonds. The latest rating assigned by Standard & Poor’s for the 2005 Sewer System Revenue Certificates of Participation is ‘BBB+/Positive.” Request for Information This financial report is designed to provide our citizens, taxpayers, customers, investors and creditors with a general overview of the Authority’s finances and to demonstrate the Authority’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the City of Rohnert Park, Finance Director, P.O. Box 1489, Rohnert Park, California,94927-1489. BASIC FINANCIAL STATEMENTS ROHNERT PARK FINANCING AUTHORITY STATEMENT OF NET POSITION JUNE 30, 2013 See accompanying notes to the basic financial statements. 6 As sets: Current assets: Restricted cash and cash equivalents 1,924,582$ Net investment in leases - current portion 985,000 Total current assets 2,909,582 Noncurrent assets: Deferred charges 424,732 Net investment in leases - noncurrent 17,780,000 Total assets 21,114,314 Liabilit ie s: Current lia bilit ie s: Interest payable 226,625 Due to the City of Rohnert Park 1,680,870 Long-term debt, current portion 776,311 Total current liabilit ie s 2,683,806 Long-term lia bilit ie s: Long-term debt, net 18,427,519 Total lia bilit ie s 21,111,325 Net position restricted for debt service 2,989$ ROHNERT PARK FINANCING AUTHORITY STATEMENT OF REVENUES, EXPENSES, AND CHANGE IN NET POSITION FOR THE FISCAL YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. 7 Operating revenues: Lease interest revenue from the City of Rohnert P ark 898,603$ Operating expenses - Operating income 898,603 Nonoperating revenues (expenses): Investment in come 10,072 Interest expense and fiscal charges (918,130) Total nonoperating revenues (expenses)(908,058) Transfer out to City of Rohnert Park (105,730) Change in net position (115,185) Net assets, begin ning of year 148,379 Restatement (Note 7)(30,205) Net position, begin ning of year restated 118,174 Net position, end of year 2,989$ ROHNERT PARK FINANCING AUTHORITY STATEMENT OF CASH FLOWS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 See accompanying notes to the basic financial statements. 8 Cash flows from operating activities: Receipts from le ssee, principal portion 560,000$ Receipts from le ssee, interest portion 898,603 Net cash provided by operating activities 1,458,603 Cash flows from capital and related financing activities: Cash payments for principal on bonds (740,000) Cash payments for in terest on bonds (915,256) Payments to the City of Rohnert Park (1,360,210) Net cash used in capital and related financing activities (3,015,466) Cash flows from in vesting activities: Cash received from earnings on in vestments and cash equivalents 10,072 Net change in cash and cash equivalents (1,546,791) Cash and cash equivalents, begin ning of year 3,471,373 Cash and cash equivalents, end of year 1,924,582$ Reconcilia tion of operating income to net cash provided by operating activities: Operating income 898,603$ Ad justments to reconcile operating income to net cash provided by operating activities: Changes in operating assets and lia bilit ie s: Decrease in net in vestment in leases 560,000 Net cash provided by operating activities 1,458,603$ ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 9 NOTE 1 –REPORTING ENTITY Organization The Rohnert Park Financing Authority (Authority) is a joint powers authority, organized pursuant to a Joint Exercise of Powers Resolution (Resolution), dated as of January 1, 1999, between the City of Rohnert Park (City) and the Community Development Commission of the City of Rohnert Park (Commission). The Resolution was entered into pursuant to the Government Code of the State of California, commencing with Section 6500. The Authority is a separate entity constituting a public instrumentality of the State of California and was formed for the public purpose of assisting in financing activities for the benefit of the City and the Commission. Effective February 1, 2012, the Commission was dissolved and all of the assets and related activities were transferred to the Successor Agency (RDA Obligation Retirement Trust Fund). The basic financial statements present only the Authority and are not intended to present fairly the financial position, the changes in financial position or the cash flows of the City or the RDA Obligation Trust Fund in conformity with accounting principles generally accepted in the United States of America (GAAP). The City Council of the City constitutes the Board of Directors of the Authority. As such, the Authority is an integral part of the City, and accordingly, the accompanying basic financial statements are blended as a component unit within the basic financial statements prepared by the City. The Authority obtains financing for City sponsored projects and purchases using lease agreements signed by the City or Commission, (now the RDA Obligation Retirement Trust Fund)as collateral. These agreements provide sufficient resources to repay the debt incurred to finance the projects. NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a)Basis of Presentation and Accounting The Authority has elected under Government Accounting Standards Board (GASB) Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, to apply all applicable GASB pronouncements, as well as any applicable pronouncements of the Financial Accounting Standards Board (FASB), the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The GASB periodically updates its codification of the existing Governmental Accounting and Financial Reporting Standards, which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The Authority has elected not to follow subsequent private-sector guidance of FASB after November 30, 1989. All activities of the Authority are accounted for within an enterprise fund. The Authority’s enterprise fund is used to report activity financed with debt that is secured solely by a pledge of revenues from the fees and charges of the activity (i.e., lease revenue). ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 10 NOTE 2 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The accounting and financial reporting treatment applied to the Authority is determined by its measurement focus. The transactions of the Authority are accounted for using the flow of economic resources measurement focus. With this measurement focus, all assets and all liabilities associated with the operations are included on the statement of net position. Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the fund’s principal ongoing operations. The principal operating revenue of the Authority is lease interest income from the City. The Authority has no operating expenses. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. (b)Cash and Cash Equivalents Cash and cash equivalents include all highly liquid investments with original purchase maturities of three months or less. (c)Net Investment in Leases Debt service on the outstanding lease revenue bonds and certificates of participation is funded with lease payments made by the City or the Successor Agency to the Authority for the use of equipment and facilities acquired or constructed with bond proceeds issued by the Authority. In the lease agreements relating to the bonds and certificates of participation, the City and the Successor Agency have covenanted to make rental payments in amounts corresponding to the Authority’s debt service requirements and related costs. The net investment in leases reflects the present value of the remaining future lease payments due from the City and Successor Agency. To the extent that funds are unexpended upon completion of all projects, such funds will be used to retire outstanding debt and rental payments required from the City and Successor Agency will be reduced accordingly. (d)Net Position Net position comprises various net earnings from operating and nonoperating revenues and expenses. Net position is classified as restricted for debt service. This consists of funds held by the trustee for the repayment of debt principal and interest or as reserves. (e)Estimates The preparation of basic financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results may differ from those estimates. (f)Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no effect on net position. ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 11 NOTE 3 –RESTRICTED CASH AND CASH EQUIVALENTS (a)Investments with Fiscal Agent Provisions of the Authority’s bond trust agreements require that certain project and restricted accounts be established. These accounts are held by trustees and fiscal agents for debt service payments, reserves and capital improvement projects. These funds have been invested only as permitted by specific state statutes governing their investment or applicable Authority ordinance, resolution or bond indenture. The investments held have been classified as restricted on the statement of net position because their use is limited by bond covenants. Information is not available on whether the various mutual funds in which the Authority has invested, used, or held wrote derivative financial products during the year ended June 30, 2013. Qualified investments as defined by the trust agreement include the following: Federal securities Bonds, debentures, notes or other evidence of indebtedness issued or guaranteed by certain federal agencies, while for other federal agencies, these investments are permitted provided that such obligations are backed by the full faith and credit of the United States of America Money market funds having a rating by Standard and Poors (S&P) of AAAm-G; AAAm; or Aam Certificates of deposit secured at all times by collateral such as federal securities or bonds, debentures, notes guaranteed by federal agencies and backed by the United States of America Certificates of deposit, savings accounts, deposit accounts or money market deposits which are fully insured by FDIC Investment agreements, including guaranteed investment contracts, acceptable to the insurer, if any Commercial paper rated at the time of purchase, “F-1” by Fitch IBCA and “A-1” or better by S&P Bonds or notes issued by any state or municipality, which are rated by Fitch IBCA and S&P in one of the two highest rating categories assigned by such agencies Federal funds or bankers acceptances with a maximum term of one year of any bank which has an unsecured, uninsured and not guaranteed obligation rating of “A” or better by Fitch IBCA and “A-1” or “A” or better by S&P Local Agency Investment Funds (b)Custodial Credit Risk As of June 30, 2013, none of the Authority’s investments were exposed to custodial credit risk as all investments represent positions held in the State Treasurer’s Local Agency Investment Fund (LAIF) and money market mutual funds. ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 12 NOTE 3 –RESTRICTED CASH AND CASH EQUIVALENTS (Continued) Credit Risk Credit risk relates to the possibility that an issuer/counterparty to an investment will be unable to fulfill its obligations. See the table below for the Authority’s investments subject to credit risk. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. The Authority does not have a formal investment policy to manage the affect of adverse changes in the fair value of an investment as a result of changes in interest rates. As of June 30, 2013, the Authority had the following investments. Maturities S&P Restricted Investments:Fair Va lu e Less than 1 yr.Credit Rating Money market mutual funds 1,924,582$ 1,924,582$ AAAm Total restricted in vestments 1,924,582 1,924,582$ NOTE 4 –NET INVESTMENTS IN LEASES The Authority’s net investment in leases,between the Authority and the City and Successor Agency, at June 30, 2013 is as follows: Capital Lease Revenue Sewer System Facilit ie s Refunding Revenue Fiscal Year Ending June 30,Project Bonds COP 's Total 2014 543,930$ 493,153$ 817,205$ 1,854,288$ 2015 349,500 496,915 816,517 1,662,932 2016 348,750 494,715 815,143 1,658,608 2017 347,500 496,800 812,888 1,657,188 2018 350,750 493,188 815,138 1,659,076 2019-2023 1,739,500 2,471,824 4,083,263 8,294,587 2024-2028 346,500 986,025 4,070,625 5,403,150 2029-2033 - - 4,071,000 4,071,000 2034-2036 - - 2,440,375 2,440,375 Total future minimum lease payments to be received 4,026,430 5,932,620 18,742,153 28,701,203 Less unearned in terest in come (936,430) (1,467,620) (7,532,153) (9,936,203) Net in vestment in leases 3,090,000 4,465,000 11,210,000 18,765,000 Less current portion (400,000) (290,000) (295,000) (985,000) Long-term portion 2,690,000$ 4,175,000$ 10,915,000$ 17,780,000$ ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 13 NOTE 5 –LONG-TERM DEBT The Authority’s long-term debt at June 30, 2013 was as follows: An nual Prin cipal Origin al Outstanding Interest Final Installm ents Issue at June 30 Type of Indebtedness Rate Maturity (thousands)Amount 2013 1999 Certificates of Participation 3.6% - 4.6%7/1/2024 $135 - 330 5,055,000$ 3,090,000$ 2003 Lease Revenue Refunding Bonds 2.5% - 4.8%7/1/2025 240 - 470 6,950,000 4,745,000 2005 Sewer System Revenue COP 's 3.0% - 4.0%5/27/2036 230 - 775 13,000,000 11,210,000 Total long-term debt 19,045,000$ Changes in long-term debt during the fiscal year ended June 30, 2013 were as follows: Amount Due Within Type of Indebtedness June 30, 2012 Ad dition Retirements June 30, 2013 One Year Long-term Debt: Certificates of P articipation: 1999 Certificates of Participation 3,280,000$ -$ 190,000$ 3,090,000$ 195,000$ 2003 Lease Revenue Refunding Bonds 5,015,000 - 270,000 4,745,000 280,000 2005 Sewer System Revenue COP 's 11,490,000 - 280,000 11,210,000 295,000 Total long-term debt 19,785,000$-$ 740,000$ 19,045,000$770,000$ Origin al issue discount (16,907) - (1,301) (15,606) (1,301) Origin al issue premium 182,048 - 7,612 174,436 7,612 Total long-term lia bilit ie s 19,950,141$-$ 746,311$ 19,203,830$776,311$ 1999 Certificates of Participation The 1999 Certificates of Participation were used to fund the Capital Facilities Project, the purpose of which was to finance the design and construction of a new city hall. 2003 Lease Revenue Refunding Bonds On July 1, 2003, the Authority issued Lease Revenue Refunding Bonds, Series 2003 in the amount of $6,950,000. The proceeds were used to refund the 1999 Certificates of Participation (Master Equipment Lease) and the 1994 Refunding Certificates of Participation (Public Safety Facility Project) issued by the City. ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 14 NOTE 5 –LONG-TERM DEBT (Continued) The refunding resulted in the accounting recognition of a loss of $210,943 for the fiscal year ended June 30, 2004 which has been deferred in accordance GASB Statement No. 23. The deferred amounts on bond refundings are amortized over the life of the old or the new debt, whichever is shorter, on a straight-line basis. See note 2(c) for further explanation. 2005 Sewer System Revenue Certificates of Participation On May 27, 2005, the Authority issued Sewer System Certificates of Participation, Series 2005 in the amount of $13,000,000. The proceeds were used to fund a parallel sewer interceptor line to the Sub-regional plant. A portion of the sewer line is related to expansion of the sewer system. Private development will reimburse the City 25% of the project cost.The remaining 75% will be paid by the sewer customers through sewer rates. Debt Service Requirements Future debt service requirements for the outstanding long-term debt are as follows: Fiscal Year 1999 Certificates of P articipation 2003 Lease Revenue Refund Bond 2005 Sewer System Revenue COP Ending June 30,Prin cipal Interest Principal Interest Prin cipal Interest 2014 195,000$ 148,318$ 280,000$ 208,333$ 295,000$ 522,205$ 2015 205,000 139,215 290,000 197,534 305,000 511,518 2016 215,000 129,125 305,000 185,815 315,000 500,143 2017 225,000 118,125 315,000 173,258 325,000 487,888 2018 235,000 106,625 330,000 159,994 340,000 475,138 2019-2023 1,370,000 338,750 1,875,000 551,356 1,930,000 2,153,263 2024-2028 645,000 32,625 1,350,000 98,088 2,415,000 1,655,625 2029-2033 - - - - 3,065,000 1,006,000 2034-2036 - - - - 2,220,000 220,375 Total 3,090,000$ 1,012,783$ 4,745,000$ 1,574,378$ 11,210,000$ 7,532,155$ Conduit Debt During fiscal year ended June 30, 2001, the Authority participated in the issuance of the Mobile Home Park Revenue Bonds 2001 Series A (Las Casitas De Sonoma) in the amount of $4,875,000. The bonds are payable solely from the revenue collected by the builders of the projects. The Authority is not obligated in any manner for repayment of the indebtedness. Accordingly, the liabilities had not been reported in the Authority’s basic financial statements. The outstanding balance was paid off during the year. During the fiscal year ended June 30, 2004, the Authority also participated in the issuance of the Mobile Home Park Revenue Bonds Series A and Series B (Rancho Feliz Mobile Home Park) in the amount of $16,705,000. In September 2003, the Rohnert Park Housing Financing Authority sold the park to Millenium Housing Corporation, a nonprofit organization. The Authority is not obligated in any manner for repayment of the indebtedness. Accordingly, the liabilities are not reported in the Authority’s basic financial statements. At June 30, 2013, outstanding balance of these bonds was $14,825,000. ROHNERT PARK FINANCING AUTHORITY NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 15 NOTE 6 –RELATED PARTY TRANSACTIONS Lease Agreements with the Commission The Authority receives lease revenues from the Commission in exchange for the use of certain buildings and leasehold improvements through June 1, 2036. The Commission made $444,161 in lease payments during the year ended June 30, 2013. Due to the City of Rohnert Park At June 30, 2013, the amount of proceeds from the issuance of debt owed to the City was $1,544,935 from the Sewer Revenue Bond fund. NOTE 7 –RESTATEMENT TO THE FINANCIAL STATEMENTS Prior year net position has been restated as of July 1, 2012, to more accurately reflect the substance of the underlying transactions and be in full compliance with GAAP. As such, the beginning net position in the amount of $30,205 was restated to reflect that adjustment. SUPPLEMENTAL INFORMATION ROHNERT PARK FINANCING AUTHORITY COMBINING SCHEDULE OF NET POSITION BY BOND PROGRAM JUNE 30, 2013 16 Lease Sewer Capital Revenue System Facilit ie s Refunding Revenue Project Bonds Bonds Total As sets: Current assets: Restricted cash and cash equivalents 76,352$ 416,961$ 1,431,269$ 1,924,582$ Net in vestment in leases - current portion 400,000 290,000 295,000 985,000 Total current assets 476,352 706,961 1,726,269 2,909,582 Noncurrent assets: Deferred charges - 165,084 259,648 424,732 Net investment in leases - noncurrent 2,690,000 4,175,000 10,915,000 17,780,000 Total assets 3,166,352 5,047,045 12,900,917 21,114,314 Liabilit ie s: Current lia bilit ie s: Interest payable 76,352 106,756 43,517 226,625 Due to City of Rohnert P ark - 30,205 1,650,665 1,680,870 Long-term debt, current portion 195,000 278,699 302,612 776,311 Total current lia bilit ie s 271,352 415,660 1,996,794 2,683,806 Long-term lia bilit ie s: Long-term debt, net 2,895,000 4,450,695 11,081,824 18,427,519 Total liabilit ie s 3,166,352 4,866,355 13,078,618 21,111,325 Restricted for debt service - 180,690 (177,701) 2,989 Net position restricted for debt service - 180,690$ (177,701)$ 2,989$ ROHNERT PARK FINANCING AUTHORITY COMBINING SCHEDULE OF REVENUES, EXPENSES AND CHANGES IN NET POSITION BY BOND PROGRAM FOR THE FISCAL YEAR ENDED JUNE 30, 2013 17 Lease Sewer Capital Revenue System Facilit ie s Refunding Revenue Project Bonds Bonds Total Operating revenues: Lease in terest revenue from the City of Rohnert P ark 152,704$ 213,513$ 532,386$ 898,603$ Operating expenses - - - - Operating income 152,704 213,513 532,386 898,603 Nonoperating revenues (expenses): Investment income - 7 10,065 10,072 Interest expense and fiscal charges (152,704) (222,559) (542,867) (918,130) Total nonoperating revenues (expenses)(152,704) (222,552) (532,802) (908,058) Transfers out to City of Rohnert P ark - (105,730) - (105,730) Change in net position - (114,769) (416) (115,185) Net position, begin ning of year - 325,664 (177,285) 148,379 Restatement (Note 7)- (30,205) - (30,205) Ne t po sition, be gi nni ng o f year restated - 295,459 (177,285) 118,174 Net position, end of year -$ 180,690$ (177,701)$ 2,989$ ROHNERT PARK FINANCING AUTHORITY COMBINING SCHEDULE OF CASH FLOWS BY BOND FOR THE FISCAL YEAR ENDED JUNE 30, 2013 18 Lease Sewer Capital Revenue System Facilit ie s Refunding Revenue Project Bonds Bonds Total Cash flows from operating activities: Cash receipts from le ssee, principal portion -$ 280,000$ 280,000$ 560,000$ Cash receipts from le ssee, interest portion 152,704 213,513 532,386 898,603 Net cash provided by operating activities 152,704 493,513 812,386 1,458,603 Cash flows from capital and related financing activities: Cash payments for principal on bonds (190,000) (270,000) (280,000) (740,000) Cash payments for in terest on bonds (156,885) (218,373) (539,998) (915,256) Payments to the City of Rohnert P ark - (105,730) (1,254,480) (1,360,210) Net cash used in capital and related financing activities (346,885) (594,103) (2,074,478) (3,015,466) Cash flows from in vesting activities: Cash received from earnings on in vestments and cash equivalents - 7 10,065 10,072 Net change in cash and cash equivalents (194,181) (100,583) (1,252,027) (1,546,791) Cash and cash equivalents, begin ning of year 270,533 517,544 2,683,296 3,471,373 Cash and cash equivalents, end of year 76,352$ 416,961$ 1,431,269$ 1,924,582$ Reconcilia tion of operating income to net cash provided by operating activities: Operating income 152,704$ 213,513$ 532,386$ 898,603$ Ad justments to reconcile operating income to net cash provided by operating activities: Changes in operating assets and lia bilit ie s: Decreases in net in vestment in leases - 280,000 280,000 560,000 Net cash provided by operating activities 152,704$ 493,513$ 812,386$ 1,458,603$ OTHER REPORT 19 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO LAGUNA HILLS PALO ALTO PLEASANTON RANCHO CUCAMONGA RIVERSIDE SACRAMENTO 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 The Board of Directors Rohnert Park Financing Authority Rohnert Park, 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, the financial statements of the Rohnert Park Financing Authority (the Authority), a component unit of the City of Rohnert Park, as of and for the year ended June 30, 2013, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated January XX, 2014. Our report included an explanatory paragraph stating that the financial statements present only the Authority and do not purport to, and do not, present fairly the financial position of the City of Rohnert Park, California as of June 30, 2013, and the changes in its financial position, and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. Our report also included an emphasis of a matter paragraph regarding the Authority’s adoption of GASB Statement No. 63 –Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority’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. 20 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal 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 may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’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 determination of financial statement amounts. 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. Pleasanton, California January XX, 2014 CITY OF ROHNERT PARK ROHNERT PARK, CALIFORNIA INDEPENDENT ACCOUNTANTS’REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT SCHEDULE FOR THE FISCAL YEAR ENDING JUNE 30, 2014 1 5000 Hopyard Road, Suite 335 Pleasanton, CA 94588 Tel: 925.734.6600 Fax: 925.734.6611 www.vtdcpa.com FRESNO LAGUNA HILLS PALO ALTO PLEASANTON RANCHO CUCAMONGA RIVERSIDE SACRAMENTO INDEPENDENT ACCOUNTANTS’ REPORT ON AGREED-UPON PROCEDURES APPLIED TO APPROPRIATIONS LIMIT CALCULATION City Council of the City of Rohnert Park Rohnert Park, California We have applied the procedures enumerated below to the Appropriations Limit calculation of the City of Rohnert Park, (the City),for the year ending June 30,2014. These procedures, which were agreed to by the City and the League of California Cities (as presented in the League publication entitled Agreed Upon Procedures Applied to the Appropriations Limitation Prescribed by Article XIII-B of the California Constitution)were performed solely to assist the City in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. The City’s management is responsible for the Appropriations Limit calculation. This agreed upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. The sufficiency of the procedures is solely the responsibility of those parties specified in this report. Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose. The procedures performed and our findings were as follows: 1.We obtained completed worksheets for the year ending June 30, 2014 and compared the limit and annual adjustment factors included in those worksheets to the limit and annual adjustment factors that were adopted by resolution of the City Council. We also compared the population and inflation options included in the aforementioned worksheets to those that were selected by a recorded vote of the City Council. Findings: No exceptions were noted as a result of our procedures. 2.We added last year’s limit to the total adjustments and compared the resulting amount to this year’s limit. Findings: No exceptions were noted as a result of our procedures. 3.We compared the current year information to the prior year appropriations limit adopted by the City Council for the prior year. Finding: No exceptions were noted as result of our procedures. 2 4.We compared the prior year appropriations limit to the prior year appropriations limit adopted by the City Council for the prior year. Finding: No exceptions were noted as a result of our procedures. We were not engaged to, and did not perform an audit, the objective of which would be the expression of an opinion on the Appropriations Limit schedule. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you. No procedures have been performed with respect to the determination of the appropriation limit for the base year, as defined by Article XIII-B of the California Constitution. This report is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited. Pleasanton, California January XX, 2014 CITY OF ROHNERT PARK APPROPRIATIONS LIMIT SCHEDULE FOR THE YEAR ENDING JUNE 30, 2014 3 Am ount A. Appropri atio ns limit fo r the year ended June 30, 2013 42,384,060$ B. Calculatio n Fa cto rs : 1. Population in crease %1.0057 2. Inflation in crease %1.0512 3. Total adjustment factor %1.057192 C. Annual adjustment Increase 2,424,022 D. Other Adjustments: Loss responsibilit y (-)- Transfers to private (-)- Transfers to fees (-)- As sumed responsibilit y (+)- E. Total Adjustments 2,424,022 F. Appropri atio ns limit fo r the year ending June 30, 2014 44,808,082$ CITY OF ROHNERT PARK NOTES TO THE APPROPRIATIONS LIMIT SCHEDULE FOR THE YEAR ENDING JUNE 30, 2014 4 1.PURPOSE OF LIMITED PROCEDURES REVIEW Under Article XIIIB of the California Constitution (the Gann Spending Limitations Initiative), California governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIIB, the annual calculation of the appropriation limit is subject to a limited procedures review in connection with the annual audit. 2.METHOD OF CALCULATION Under Section 10.5 of Article XIIIB, for fiscal years beginning on or after July, 1990, the appropriations limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation and population factors discussed in Notes 3 and 4 below. 3.INFLATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change in the 4th quarter per capita personal income (which percentage is supplied by the State Department of Finance) or the percentage change in the local assessment roll from the preceding year due to the change of local nonresidential construction. The factor adopted by the City for the year 2013-14 represents the annual percentage change in the per capita personal income. 4.POPULATION FACTORS A California governmental agency may adjust its appropriations limit by either the annual percentage change of the jurisdiction’s own population or the annual percentage change in population of the county where the jurisdiction is located. The factor adopted by the City for the year 2013-14 represents the annual percentage change in population for the County. 5.OTHER ADJUSTMENTS A California government agency may be required to adjust its appropriations limit when certain events occur, such as the transfer of responsibility for municipal services to, or from, another government agency or private entity. The City had no such adjustment for the year ending June 30, 2014. ITEM NO. 8 1 1 Meeting Date: January 28, 2014 Department: Administration Submitted By: JoAnne Buergler, City Clerk Prepared By: JoAnne Buergler, City Clerk Agenda Title: Campaign Contribution Limit Review Established by Rohnert Park Municipal Code §2.65.030 RECOMMENDED ACTION: Review the established $500 campaign contribution limit and determine if the limitation shall remain the same, be increased, or decreased per election cycle. Staff recommends maintaining the current $500 limit. BACKGROUND: The City Council sought to reduce the actual and perceived influence of contributions on elected officials by limiting the amount of campaign contributions for candidates and to further the goal of an informed electorate by supplementing the campaign disclosure requirements and related regulations set forth in the Political Reform Act of 1974. The City Council established campaign contribution limits with the adoption of Ordinance No. 750 on November 22, 2005, adding Chapter 2.65, “Campaign Finance Regulations” to Title 2, “Administration and Personnel” to the Rohnert Park Municipal Code. In accordance with Rohnert Park Municipal Code §2.65.030 – Contribution limitations-General, paragraph E, “The five hundred dollar limitation established by this section shall be reviewed by the city council in January of every fourth year commencing in 2010 to determine whether such limitation shall remain the same or be increased or decreased.” Accordingly, Chapter 2.65 of the Rohnert Park Municipal is provided to Council for review and direction. ANALYSIS: Cloverdale, Sebastopol, and Windsor do not have limits. The Sonoma County cities with limits are not expected to make changes and are listed below. Healdsburg $500 Rohnert Park $500 Santa Rosa $500 Sonoma $500 (monetary $100, non-monetary $400) Cotati $350 Petaluma $200 Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 8 2 Other California Cities appear to be maintaining current limits and not making changes. Since the establishment of the $500 contribution limit in 2005, the City has held 4 elective city office election cycles and the limitation appears to be fulfilling its intended purpose. Any amendment of the limitation must be done by ordinance and shall be preceded by at least one public hearing. OPTIONS CONSIDERED: Staff would recommend changing the limitation if dissimilar with other Sonoma County cities, if other California cities making changes, or if Rohnert Park was experiencing actual and perceived influence of contributions on elected officials. FISCAL IMPACT/FUNDING SOURCE: None. Department Head Approval Date: NA City Manager Approval Date: 1-21-14 City Attorney Approval Date: 1-14-14 Attachments (list in packet assembly order): 1. Rohnert Park Municipal Code Chapter 2.65 – Campaign Finance Regulations ITEM NO. 9 1 Meeting Date: January 28, 2014 Department: Public Works and Community Services Submitted By: John McArthur, Director of Public Works & Community Services Agenda Title: Digital Billboard Use Policy- Consideration of amending the policy to allow local nonprofit organizations messages for welcoming new businesses and eliminating Exhibit D (local nonprofit organizations list) RECOMMENDED ACTION: Staff seeks City Council direction regarding proposed amendments to the Digital Billboard Use Policy nonprofit use provision. Staff recommends: 1. Amending Section D (message content) of the Digital Billboard Use Policy (Policy) to allow local nonprofits messages for welcoming new businesses to Rohnert Park, and 2. Eliminating Exhibit D - local nonprofit organizations in Rohnert Park list. BACKGROUND: On October 22, 2013, the City Council adopted a Digital Billboard Use Policy for the City’s 10% advertising time allocation. The purpose of the Policy is to outline the rules and procedures for the distribution of information, advertising and announcements of citywide and community events displayed on the sign. The Policy includes direction on how message requests will be handled both internally (City) and externally (non-City). The Digital Billboard Use Policy has a provision for local nonprofit use of the digital billboard. The Policy allows for up to 5% of the City’s allocated advertising time to be used for local nonprofit organizations. The Digital Billboard Use Policy defines local nonprofit organizations as an organization that has been conferred eligible for nonprofit status by the Internal Revenue Service under United States Internal Revenue Code Section 501(c) and maintains its principal office or place of operation within the City of Rohnert Park. The Policy limits the messages of non-profits to the name of the event, the sponsor, date, time and other specific factual details of the event. ANALYSIS: There are several different types of nonprofit organizations that fit within the 501(c) designation; they range from 501(c)1 through 501(c)29. The Digital Billboard Use Policy did not make the specific distinction of type of 501(c) organization. However, based on previous discussion and direction with the City Council, nonprofit use of the digital billboard was determined to be for “community or civic events” and announcements that: 1. Promote the community, and Mission Statement “We Care for Our Residents by Working Together to Build a Better Community for Today and Tomorrow.” CITY OF ROHNERT PARK CITY COUNCIL AGENDA REPORT ITEM NO. 9 2 2. Refer to local events that are of a civic, public or educational in nature, and are 3. Available to the general public. New Business Welcoming Messages When the draft Policy was being developed and originally presented to the City Council for direction, staff’s focus regarding non-profit use was centered on community or civic event announcements. Anticipated community event announcements typically satisfy all three criteria mentioned above. The recent Holiday Tree Lighting event that was announced on the Digital Billboard is a good example of an anticipated community or civic event announcement. Another type of announcement originating from a local nonprofit could be the welcoming of new Rohnert Park businesses (whether they are nonprofit or for profit). This type of announcement could be considered to promote the community’s interest and be available to the general public and thus satisfy two of the three requirements under the City’s Policy. However, this type of message was not discussed with the City Council when the policy was in development and is not considered a “local event”. Therefore, the welcome message doesn’t fit within the current content requirements of the name of event, sponsor, date, time, etc. The Policy would have to be amended to allow local nonprofit messages that welcome new businesses. Staff recommends amending the Policy to allow messages originating from local nonprofits that welcome new businesses to Rohnert Park. These new businesses welcoming messages could assist the local economy and the thereby benefit the entire community. Elimination of Exhibit D – Rohnert Park Nonprofit List Staff has found that the type and number of 501(c) organizations in Rohnert Park to be extensive and subject to frequent changes. Thus, unless the nonprofit list is updated frequently, there is a high probability that the list would be inaccurate. Updating the nonprofit list in periods when there is no demand for nonprofit usage is not an efficient use of staff time. As a matter of practice, staff would verify an organization’s local nonprofit status on an as needed basis. Verifying an organization’s status as a local nonprofit upon use application, as opposed to maintaining an updated list would be more efficient and better serve the intent of the Policy. FISCAL IMPACT: No funding is required for the policy amendment. Allowing business welcoming messages could help new local businesses and the local economy. NEXT STEPS: Staff is seeking City Council direction on the proposed amendments to the Digital Billboard Policy. With City Council’s direction, staff would amend the Digital Billboard Policy accordingly and bring back to the City Council at a future meeting for approval. Department Head Approval Date: January 14, 2014 City Manager Approval Date: January 17, 2014 City Attorney Approval Date: January 16, 2014 Attachments (list in packet assembly order): 1. Digital Billboard Use Policy 2. 501(C) Organization List CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 1 OF 11 PURPOSE The City has entered into a Digital Billboard Lease dated April 23, 2013 (Lease) with Veale Investment Properties dba B.P.O. of California (Billboard Operator), under which the City has leased certain property owned by the City that is adjacent to the 101 freeway to the Billboard Operator for the purpose of developing and operating a digital billboard (Digital Billboard). The primary purpose of the Digital Billboard is to generate advertising revenues used to help support City operations. The Digital Billboard is not intended to provide a general public forum for the purposes of communication, but to make use of City property held in a proprietary capacity in order to generate revenue. Under the Lease, the City is allocated 10% of the total advertising time on the Digital Billboard for City usage. The purpose of this Digital Billboard Use Policy is to provide guidelines and procedures for the identification, priority, submission and display of messages regarding City and community events on the Digital Billboard. DEFINITIONS City: means the City of Rohnert Park and its departments and events sponsored by the City. City Manager: means the City of Manager of the City or the Manager's designee. Community /Civic Events: mean local events that are of a civic, public, or educational nature, including City festivities and other similar events that promote the community and are open to the general public. For - Profit Organization: means a business or other organization whose primary goal is making money (a profit) or has not been deemed eligible for nonprofit status by the Internal Revenue Service. Local Nonprofit Organization: means an organization that has been conferred eligible for nonprofit status by the Internal Revenue Service under United States Internal Revenue Code Section 501(c) and maintains its principal office or place of operation within the City of Rohnert Park. Exhibit D of this policy lists all current Local Nonprofit Organizations. This list is updated annually. Local Public Educational Institutions: means and includes the Cotati - Rohnert Park Unified School District and Sonoma State University. OAK 144839 - 6792 -1942 v2 Page 1 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 2 OF 11 Non -City: means and includes Local Nonprofit Organizations, Community /Civic Events, and Local Public Schools. POLICY A. Responsibility The Department of Public Works /Community Services is responsible for managing and submitting messages for display on the Digital Billboard. If there are any questions regarding content of the message, or whether or not a group requesting use of the Digital Billboard is authorized under this policy, the City Manager will serve as the final decision - making authority. B. Policy City message requests will have priority over all Non-City requests. Revenue - generating City events have precedence over non - revenue generating City events. Revenue - generating City events include, but are not limited to: Performing Arts Center productions, Farmer's Market, Holiday Arts & Crafts Faire, Animal Shelter Mutt Strut and other fundraising events. Non - revenue generating City events include, but are not limited to: Public Safety National Night Out, Public Safety service announcements and the Health and Safety Fair. Based on historical use the anticipated City allocation is as follows (based on the 10% of message time allocated to the City under the Lease): City Use Structure Allocation Spots /Hour 1. Community Services /Performing Arts Center (PAC) Trade Agreements PAC Productions 7.5% 45 2. Community Services (other) City- sponsored events 1.0% 6 3. Public Safety Community alerts Public Safety service announcements 1.0% 6 4. Administration Community alerts Non -City events and messages 5% 3 TOTAL Non -City Use Structure Non -City messages will be part of the Administration allocation. OAK #4839- 6792 -1942 v2 Page 2 of 11 10% 60 /hour CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 3 OF 11 For - Profit Organizations: For - profit organizations are not covered under this policy and will be referred to the Billboard Operator for their advertising needs as outlined in the Lease. C. General Information, Procedures and Prioritization General Information 1. Requests will be approved on the basis of availability, first come, first served, and conformity to the prioritization and advertising criteria as outlined in this policy. 2 Duration of all messages will be determined on a case by case basis by the City Manager. 3. Each message will be displayed for the prescribed time and must conform to the parameters outlined in Exhibit A. NOTE: Under the Lease, the Billboard Operator has sole discretion in determining the advertising time placement within the advertising display loop. Procedures 1. City message requests must be submitted a minimum of one week prior to the desired beginning display date. 2. Non - City message requests must be submitted on the Digital Billboard Message Request Form (Exhibit C) a minimum of 10 business days prior to the desired beginning display date. 3. The Request Form is located on the City's website at: www.rpcitv.orq. The request form must be completed legibly and in its entirety in order to be considered. Prioritization 1. In the event that there are several requests for any given time period, the requests will be posted on a first come, first served basis with priority given to City messages. OAK #4839 - 6792 -1942 v2 Page 3 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 4 OF 11 2. If there is unbooked City usage time, the Digital Billboard will default to display PAC Productions and Trade Agreements based on approval by the City Manager. D. Message Content 1. All messages submitted for display must adhere to the criteria outlined in Section 7.12 (Advertising Rights) of the Lease, which is restated as follows: 7.12 Advertising Rights 7.12.1 Operation of the Message Center. In ` operating the Message Center, Tenant shall conform to all valid and applicable laws and regulations, including laws and regulations pertaining to outdoor advertising, including the criteria and limitations set forth in the Lease Agreement. Unless otherwise legally obligated to do so, Tenant shall not display any message that in the judgment of the Rohnert Park City Manager or his or her designee: i. is false, misleading, or deceptive; ii. promotes the sale or use of tobacco products, or medical marijuana, whether directly or indirectly, provided that advertising for hydroponics shall not be deemed indirect promotion of marijuana; iii. promotes the sale of alcoholic beverages in a manner that violates the best standards of the outdoor advertising industry for the promotion of wineries or alcoholic beverages; iv depicts violence or anti - social behavior or relates to illegal activity; v. contains "obscene matter," as that term is defined in California Penal Code section 311 on the Effective Date, or promotes adult entertainment; vi. promotes or opposes a candidate for public office or promotes or opposes a ballot measure; vii. holds a person or group of persons up to public ridicule, derision, or embarrassment, or defames a person or group of persons; or OAK $$4839- 6792 -1942 v2 Page 4 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 5 OF 11 viii. contains language that is obscene, vulgar, profane, or scatological, or that presents a clear -and- present danger of causing riot, disorder, or other imminent threat to public safety, peace, or order. As used in this Section 7.12.1, "legally obligated" shall mean under a court order from a court with competent jurisdiction. 2. Non -City messages will be limited to the name of the event, the sponsor, date, time and other specific factual details of the event. 3. If despite such preliminary review by the City, a message is subsequently determined to be in violation of these criteria, the City Manager may cause such message to be removed. If a Non -City message is removed, a pro -rated refund will be provided by the City. E. Digital Specification Requirements It is the responsibility of the requestor to provide the desired message in the following format: 1. File Size: 200px Height x 704 px Width 2. File Type: Uncompressed.jpg 3. DPI: 72 default setting 4. Color Mode: RGB and CMYK F. Authority 1. The City Manager is authorized to accept or reject requests, including the content of the message, and may propose alteration to the requestor in order to comply with the guidelines set forth in this policy. 2. The -_City Manager, may pre -empt, remove or delay displaying any City message. 3. For Non -City message displays, the City Manager may delay the display or remove a playing message for non - payment of the applicable advertising rate. There will be no refunds or reductions in charges for any resulting loss of message display time. However, if a Non -City message is delayed for reasons or circumstances beyond the control of the City, the City will use its best efforts to have the Billboard Operator extend or increase in the frequency of the affected message. OAK #4839- 6792 -1942 v2 Page 5 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 6 OF 11 G. Cost Recovery : There will be no cost recovery rate applied to City message displays. There will be no cost recovery rate applied to Local Public Educational Institutions for non - ticketed or non -fee charged events or announcements. Non -City messages will be charged at the rates indicated in the attached Cost Recovery Rate Schedule (Exhibit B). OAK #4839- 6792 -1942 v2 Page 6 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 7 OF 11 Exhibit A Advertising Dimensions and Durations It is the responsibility of the requestor to provide the desired Digital Billboard display in the following format: 1. File Size: 200px Height x 704px Width 2. File Type: Uncompressed.jpg 3. DPI: 72 default setting 4. Color Mode: RGB and CMYK Message Duration: Minimum frame display duration: 6 seconds Minimum total message duration: 2 days Maximum total message duration:(TBD) days, dependent upon availability and at the City Manager's discretion. Under the Lease between the City and the Billboard Operator, the City is allocated 10% of the total advertising time on the Digital Billboard. This allows for all City uses up to one spot per minute and sixty spots per hour. OAK #4839 - 67924942 v2 Page 7 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY , q ws F fix SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 8 OF 11 Exhibit B Cost Recovery Rate Schedule 1 j`' ((,} s,l ', , i i -, s C i' Y ra 3,. } r is '" r r r ;: ? as > i fii71 7 .:,...- .r % r z, r, - -,r „ r, 3`x `" i' 4 r`C iE oaf •, 1`,,1 Local Nonprofit Organizations Weeks Maximum per Ad Weekdays and Weekend week Weekends only 40/Weekend Weekday rate (minimum 2 days) 25 /Day Community /Civic Events Weeks Maximum per Ad Weekdays and Weekends 200 /Entire week Weekends only 80/Weekend Weekday rate (minimum 2 days) 50 /Day To be evaluated and approved on a case -by -case basis. OAK #4839 - 6792 -1942 v2 Page 8 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 9 OF 11 Exhibit C CITY OF ROHNERT PARK DIGITAL BILLBOARD MESSAGE REQUEST APPLICATION Organization /Group Name: Contact Person(s) Contact Number(s) E -mail address Type of Event Date of Event Time of Event Dates Requesting to Display, Message. Beginning: End: Location of Event Mail, Fax or Deliver Application to: City of Rohnert Park Attn: ADDRESS Rohnert Park, CA 94928 Fax # (707) XXX -XXXX Phone # (707) XXX -XXXX e-mail: Applications must be received at least 10 business days prior to the desired posting date. Print the message as it should appear on the Billboard. Under the City's Digital Billboard Use Policy, Non -City messages are limited to the name of the event, the sponsor, date, time and other specific factual details of the event. The City of Rohnert Park reserves the right to modify content and format for policy compliance. OAK #4839- 6792 -1942 v2 Page 9 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 10 OF 11 Disclaimer of Liability On behalf of the requesting organization, it is agreed that the City of Rohnert Park will not be held liable for any improper or incorrect use of the information displayed on the Digital Billboard and that the City assumes no responsibility for any organization's use of the Digital Billboard. In no event may the City be liable for any damages, whether direct, indirect, incidental, special, exemplary or consequential regardless of cause, and on any theory of liability, whether in contract, strict liability, or tort (including negligence or otherwise) arising in any way out of the use of the Digital Billboard, even if advised on the possibility of such damage. I certify that I am authorized to submit this request by the organization identified above. Signature Print Name OAK #4839- 6792 -1942 v2 Page 10 of 11 CITY OF ROHNERT PARK CITY COUNCIL POLICY SUBJECT DIGITAL BILLBOARD USE POLICY NO. RESO. NO. 2013 -146 EFF. DATE 10/23/2013 PAGE 11 OF 11 Exhibit D Local Nonprofit Organizations in Rohnert Park, California To be completed. OAK #4839- 6792 -1942 v2 Page 11 of 11 1 Nonprofit 501(c) Organizations According to the IRS Publication 557†, in the ''Organization Reference Chart'' section, the following is an exact list of 501(c) organization types and their corresponding descriptions. * 501(c)(1) — Corporations Organized Under Act of Congress (including Federal Credit Union Act Federal Credit Unions) * 501(c)(2) — Title Holding Corporation for Exempt Organizations * 501(c)(3)| — Religious, Educational, Charitable, Scientific, Literary, Testing for Public Safety, to Foster National or International Amateur Sports Competition, or Prevention of Cruelty to Children or Animals Organizations * 501(c)(4) — Civic Leagues, Social Welfare Organizations, and Local Associations of Employees * 501(c)(5) — Labor, Agricultural and Horticultural Organizations * 501(c)(6) — Business Leagues, Chambers of Commerce, Real Estate Boards, etc. * 501(c)(7) — Social and Recreational Clubs * 501(c)(8) — Benefit society Fraternal Beneficiary Societies and Associations * 501(c)(9) — Voluntary Employee Beneficiary Associations * 501(c)(10) — Domestic Fraternal Societies and Associations * 501(c)(11) — Teachers' Retirement Fund Associations * 501(c)(12) — Benevolent Life Insurance Associations, Mutual Ditch or Irrigation Companies, Mutual or Cooperative * 501(c)(13) — Cemetery Companies * 501(c)(14) — State-Chartered Credit Unions, Mutual Reserve Funds * 501(c)(15) — Mutual Insurance Companies or Associations * 501(c)(16) — Cooperative Organizations to Finance Crop Operations * 501(c)(17) — Supplemental Unemployment Benefit Trusts * 501(c)(18) — Employee Funded Pension Trust (created before June 25, 1959) * 501(c)(19) — Post or Organization of Past or Present Members of the United States Armed Forces Armed Forces * 501(c)(20) — Group Legal Services Plan Organizations * 501(c)(21) — Coalworker's pneumoconiosis Black lung Benefit Trusts * 501(c)(22) — Withdrawal Liability Payment Fund * 501(c)(23) — Veterans Organization (created before 1880) * 501(c)(24) — Section 4049 ERISA Trusts * 501(c)(25) — Title Holding Corporations or Trusts with Multiple Parents * 501(c)(26) — State-Sponsored Organization Providing Health Coverage for High-Risk Individuals * 501(c)(27) — State-Sponsored Workers' Compensation [[Reinsurance]] Organization * 501(c)(28) — National Railroad Retirement Investment Trust * 501(c)(29) — Qualified Nonprofit Health Insurance Issuers (Created in section 1322(h)(1) of the Affordable Care Act) 201 West Sierra Avenue, Cotati, CA 94931 -4217  TELEPHONE 707 7924600  FAX 7957067 January 22, 2014 Subject : Letter of Interest for Sonoma County Child Care Planning Council To: Sonoma County Mayors and Council Members Association This letter will serve as my interest in serving as a representative on the Sonoma County Child Care Planning Council. As a mother who raised three children while working full time, I understand the importance of providing quality care for our children. I was fortunate that I was able to obtain quality care for my children during their formative years. I feel strongly that quality care is important not only for the growth of our children, but also for the ability of their parents to focus on being productive workers without worrying about the care of their children. It would be an honor to serve on this council to ensure that Sonoma County has quality, accessible and affordable child care. Thank you, Susan Susan Harvey City Council Member Cotati, CA ROHNERT PARK SENIOR CITIZEN’S ADVISORY COMISSION A G E N D A Thursday, January 16, 2014 1:00 p.m. 6800 Hunter Drive, Rohnert Park To any member of the audience desiring to address the Senior Citizens Advisory Commission: If you wish to speak on an item under discussion by the Senior Advisory Commission, you may do so upon recognition from the Chairperson. After receiving recognition from the Chairperson, please state your name and address for the record before making your presentation. Item Topic CALL MEETING TO ORDER PLEDGE OF ALLEGIANCE  Roll Call: Sampson Ackerman Welch Roger Schwanke Approval of Minutes for 9/19/13 Meeting  Acknowledgment of Recreation Department staff’s report on the posting of the meeting’s agenda. Agenda has been posted in three public places: Community Center, Public Safety Building, City Hall, and on the City’s Website.  Unscheduled Public Appearances for public comments on items not listed on the agenda, or on agenda items if unable to speak at the scheduled time. Item Topic Item #1 Selection of Officers. Item #1 Community Services Specialist Report Item #2 Parks & Recreation Commission Liaison Report Item #3 City Council Liaison Report Item #4 Community Services Manager Report Item #5 Communications Item #6 Matters from Commissioners Adjournment Disabled Accommodation: If you have a disability which requires an interpreter or other person to assist you while attending this Senior Advisory Commission Meeting, please contact the City Offices at (707) 588-3456 at least 72 hours prior to the meeting to insure arrangements for accommodation by the City. Please make sure the Recreation Department is notified as soon as possible if you have a visual impairment that requires the meeting materials be produced in another format (Braille, audio-tape, etc.). American Lung Association in California State of Tobacco Control 2013 — California Local Grades V v m 2 5 co Q 0 3D 0) ro 0) a N Q. 0 0 3 0 ro 3 CD 3 CD 0) (D 0 (D N + 0 co S O d 0 0 0 S 0_ Ij 0 C'1 Ul 0 N - n 0 co W .. 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