16-0621_BOYS & GIRLS CLUBS OF CAPISTRANO VALLEY_E1a_Agenda Report 6/21/2016
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City of San Juan Capistrano
Agenda Report
TO: Honorable Mayor and Members of the City Council
FROM: Ben Siegel, City Manager %
SUBMITTED BY: Ken AI-Imam, Chief Financial Officer
DATE: June 21, 2016
SUBJECT: Consideration of Resolutions Adopting the Operating Budgets for
Fiscal Years 2016-17 and 2017-18, the Proposed Seven-Year
Capital Improvement Program for Fiscal Years 2016-17 through
2022-23, Establishing the Fiscal Year 2016-17 Appropriation
Limitation, Establishing the Property Tax Rates for Open Space
(Measure D-1990) General Obligation 1998 Refunding Bonds, and
Open Space (Measure Y-2008) General Obligation Bonds, Series
2009A for Fiscal Year 2016-17, Amend Loan Between Water Fund
and Sewer Fund, Conform Salaries of Part-time Employees to
City's MOU, and Adopt Reserve Policy; to Approve Second
Amendment to Agreement with Boys and Girls Clubs of Capistrano
Valley; and to Approve Revised Investment Policy
RECOMMENDATIONS:
By motion, approve the resolutions adopting the Operating Budgets for Fiscal Years
2016-17 and 2017-18 and the Proposed Seven-Year Capital Improvement Program for
Fiscal Years 2016-17 through 2022-23; approve the resolutions establishing the Fiscal
Year 2016-17 Appropriations Limitation; approve the resolutions establishing the
Property Tax Rates for the Open Space (Measure D-1990) General Obligation 1998
Refunding Bond, and Open Space (Measure Y-2008) General Obligation Bonds, Series
2009A for Fiscal Year 2016-17; authorize the City Manager to execute a second
amendment to the Personal Services Agreement with the Boys and Girls Clubs of
Capistrano Valley; approve the resolution conforming the salaries of part-time
employees to City's MOU; approve the resolution establishing a City reserve policy;
approve the resolution to amend the loan from the Sewer Fund to the Water Fund; and
approve the City's revised investment policy.
City Council Agenda Report
June 21, 2016
Page 2 of 8
EXECUTIVE SUMMARY:
The City adopts its budget on a biennial basis. The appropriations that are set forth in
the accompanying resolutions reflect the Proposed Operating Budgets for Fiscal Years
2016-17 and 2017-18 and the Proposed Seven-Year Capital Improvement Program for
Fiscal Years 2016-17 through 2022-23 that were presented to City Council at a public
workshop on May 23, 2016, with certain minor adjustments described in this agenda
report. These budget resolutions provide for total operating appropriations of $59.8
million and total capital appropriations of $9.3 million for Fiscal Year 2016-17, and total
operating appropriations of $60.6 million and total capital appropriations of $8.4 million
for Fiscal Year 2017-18.
DISCUSSION/ANALYSIS:
On May 23 2016, the City held a budget workshop in order to review with City Council
the proposed two-year budget for Fiscal Years 2016-17 and 2017-18.
During the budget workshop, staff provided to City Council information concerning:
■ The economic context within which the budget must be considered;
• Financial trends regarding significant revenues of the City;
• Events and conditions that affected the financial results of Fiscal Year 2015-16;
• Assumptions and challenges that impacted development of the City's budget for
Fiscal Years 2016-17 and 2017-18;
• A discussion of the key priorities that were established during the strategic
planning workshop;
• Measures reflected in the proposed budget that were necessary to provide a
balanced budget for the General Fund for Fiscal Years 2016-17 and 2017-18;
• Future opportunities for new or increased revenue for the City;
• An analysis of the City's reserve needs; and,
• An overview of the City's seven-year capital improvement program with specific
commentary about significant projects.
At the conclusion of the workshop, City Council indicated approval of the budget as
proposed, with direction to remove the Trabuco Creek Multi-Use Trail Connection
Project (CIP 16205) in the amount of $100,000 from the City's Seven-year Capital
Improvement Budget.
Since the workshop, two minor adjustments were made to the proposed budget of the
General Fund to reflect information that became available after the budget workshop
was held. These adjustments reflect the inclusion of contracted mobile home park
hearing officer services in the amount of $15,000 per year, and an adjustment of $2,500
per year to increase the annual appropriation for crossing guard expenses.
City Council Agenda Report
June 21, 2016
Page 3 of 8
Operating Budgets
The proposed operating budget for the General Fund reflects total budgeted revenues
(including interfund transfers) of $26.6 million for Fiscal Year 2016-17 and $27.3 million
for Fiscal Year 2017-18. This compares to revenues of $26.3 million for the adopted
budget of Fiscal Year 2015-16. The proposed operating budget for the General Fund
reflects budgeted expenditures (including interfund transfers) of $26.5 million for Fiscal
Year 2016-17 and $27.2 million for Fiscal Year 2017-18. This compares to expenditures
of $25.2 million for the adopted budget of Fiscal Year 2015-16.
The proposed General Fund budget projects revenues (including interfund transfers)
over expenditures (including interfund transfers) of $62,892 for Fiscal Year 2016-17 and
$88,975 for Fiscal Year 2017-18. This results in total projected General Fund reserves
of $13.7 million (51.6% of the General Fund annual budget), and $13.8 million (50.8% of
the General Fund annual budget), as of June 30, 2017, and June 30, 2018,
respectively.
The Budget Resolution (Attachment 1) reflects Fiscal Years 2016-17 and 2017-18
Operating and Capital Improvement Budgets, which are comprised of the following:
Fiscal Year 2016-2017
Transfers
Operating Capital Between
Expenditures Expenditures Funds(1) Total
General Fund $25,574,578 $ 985,035 $26,559,613
Other Governmental Funds 3,858,520 4,925,000 579,195 9,362,715
Enterprise Funds 21,290,631 4,267,000 4,496,960 30,054,591
Internal Service Funds 9,075,265 152,000 9,227,265
Total All City Funds(2) $59,798,994 $ 9,344,000 $6,061,190 $75,204,184
Fiscal Year 2017-2018
Transfers
Operating Capital Between
Expenditures Expenditures Funds(1) Total
General Fund $26,185,949 $ 985,921 $27,171,870
Other Governmental Funds 3,909,702 4,263,550 454,195 8,627,447
Enterprise Funds 20,770,366 4,012,000 4,470,360 29,252,726
Internal Service Funds 9,762,811 152,000 9,914,811
Total All City Funds(2) $60,628,828 $ 8,427,550 $5,910,476 $74,966,854
City Council Agenda Report
June 21, 2016
Page 4 of 8
(1) Transfers between funds are balanced by fund types,general and governmental funds and enterprise funds.
(2) Totals do not include the San Juan Capistrano Public Financing Authority and San Juan Capistrano Housing
Authority(See Exhibit A to the Resolution).
Budgeted amounts for funds of the San Juan Capistrano Public Financing Authority and
San Juan Capistrano Housing Authority are adopted by separate Resolutions to be
approved by their governing bodies.
Seven-Year Capital Improvement Program
With each budget cycle and periodically as circumstances warrant, the City of San Juan
Capistrano evaluates its capital project needs and adjusts the amounts appropriated
under its Capital Improvement Program for the succeeding seven year period.
Attachment 2 represents the Resolution to appropriate the funds required under the
Seven-Year Capital Improvement Program for Fiscal Years 2016-17 through 2022-23,
summarized as follows:
Project
Fiscal Year Expenditures
2016-17 $ 9,344,000
2017-18 8,427,550
2018-19 15,680,500
2019-20 6,986,000
2020-21 7,970,000
2021-22 5,123,000
2022-23 7,976,000
TOTAL $ 61,507,050
The Fiscal Years 2016-17 and 2017-18 project expenditures have been adopted as part
of the Fiscal Years 2016-17 and 2017-18 Operating and Capital Budgets.
Establishment of the Appropriations Limitation for Fiscal Year 2016-17
Article XIII of the California State Constitution requires local governments to establish a
limitation on the amount of proceeds of taxes which may be appropriated for spending.
It is the City's responsibility to calculate the annual appropriations limit. The previous
fiscal year's limit is increased by a factor calculated by changes in population and
inflation. Cities may choose an inflation factor, which is either the change in the
California Per Capita Personal Income (CCPI) or the change in the local assessment
tax roll that is due to non-residential construction. The population factor option is either
the growth rate in the city or the county. The choice of each of these factors is an
annual election of the City by means of resolution.
Based on the foregoing methodology set forth in state law, the appropriations limitation
for Fiscal Year 2016-17 has been determined to be $73,852,640 (Exhibit A of
City Council Agenda Report
June 21, 2016
Page 5 of 8
Attachment 3). The City's budgeted expenditures are significantly below the limit, and
therefore, the City's Fiscal Year 2016-17 Budget is in compliance with the State
Constitution with respect to this matter.
Property Tax Rates for Voter-Approved Bonded Indebtedness
The City must annually establish those property tax rates that are necessary to cover
the cost of voter-approved bonded indebtedness through an ad valorem tax rate levied
on all properties in the city. The calculation for these tax rates is based upon the debt
service requirements for the year in question, adjusted for any excess/deficit reserve in
the Debt Service Fund, to determine the dollars needed from property tax assessments
to meet the annual debt service on the general obligation bonds. This figure is divided
by the estimated secured value of the property obtained from the Orange County
Assessor, to arrive at a tax rate per $100 of assessed valuation. Once the rates are set,
the County of Orange is notified of these rates so they can place them on the property
tax rolls. The City of San Juan Capistrano currently has two such tax rates to be
included on the tax rolls:
Measure D - 1990
In April of 1990, voters approved Open Space General Obligation Bond Measure D
for $21,000,000. This bond measure provided for the preservation of City open
space land through acquisition from private property owners. Additionally, the
measure provided funds for the implementation of an Open Space Master Plan and
construction of specific facilities. The City acquired three parcels: the Kinoshita
Farmland, the Swanner Ranch, and Williams Ranch in our Northwest Area. The
bonds, originally issued from 1990 to 1992, were refinanced in June 1998 at a lower
interest rate than the original bonds. The projected property valuation for Fiscal
Year 2016-17 will result in a levy of $0.00605 per $100 of assessed valuation for
Measure D (Attachment 4).
Measure Y— 2008
On November 4, 2008, voters approved Measure Y, which provided $30 million in
bond funding for Open Space, Natural Areas, and Clean Water Protection and
Preservation projects. This bond measure provided for the acquisition, preservation,
enhancement and improvement of land to protect and preserve open space, natural
areas, creeks and streams, historic areas, undeveloped hillsides and natural ridges
from potential residential and commercial development, and to provide additional
recreational amenities such as bike and walking trails, equestrian facilities, parks,
and sports fields. Pursuant to Measure Y, $30 million in bonds were issued under
this measure in January 2010. The City has acquired approximately 132 acres at
the eastern boundary of the City and has earmarked the remaining bond proceeds
for the improvement of the Northwest Open Space Park — Phase I, and habitat
acquisition projects. The projected property valuation for Fiscal Year 2016-17 will
result in a levy of $0.02969 per $100 of assessed valuation Measure Y (Attachment
5).
City Council Agenda Report
June 21, 2016
Page 6 of 8
Resolution to Conform Part-time Employees to City's MOU
The proposed budget provided at the budget workshop held on May 23, 2016 reflected
an extension of the 3% across-the-board cost of living adjustment for all City employees
to hourly part-time staff. A resolution providing for this is attached at Attachment 7.
Boys and Girls Clubs of Capistrano Valley
As discussed during the budget workshop held on May 23, 2016, the proposed budget
includes the cost of services to be provided by the Boys and Girls Clubs of Capistrano
Valley for the two year period covered by the proposed budget. Accordingly, an
amendment to extend the term of the City's agreement with the Boys and Girls Clubs of
Capistrano Valley for that two year period is provided at Attachment 6.
Reserve Policy
During the budget workshop held on May 23, 2016, City Council approved the
reallocation of General Fund reserves to specific reserves that more clearly define the
need for such reserves. Staff agreed to provide a reserve policy to assist the City in
evaluating and adjusting the reserves of the General Fund as needed during each
budget cycle to reflect the needs and priorities of the City. That policy is in the form of a
resolution presented at Attachment 8.
Investment Policy
As a part of the financial review associated with the budget process, the Finance
Department and the City's investment advisor evaluated the City's investment policy.
Attachment 10 to this agenda report reflects the revised investment policy that resulted
from this evaluation. It includes changes that were recommended by the City's
investment advisor, PFM Asset Management. The most significant changes reflected in
the revised policy are (1) extending the policy to all components of the City, (2)
increasing the percentage of the portfolio that can be invested in federal agency
securities and the Local Agency Investment Fund, and (3) other technical changes to
conform to the requirements of the California Government Code.
Amendment of Sewer Loan
On August 4, 2015, the City Council authorized the Water Operations Fund of the City
to enter into a loan to borrow funds from the Sewer Operations Fund and the Sewer
Capital Improvement Fund. The purpose of the loan was to finance the payment of
refunds to water utility customers as a result of settlement of the Capistrano Taxpayers
Association litigation. The original terms of the loan provided that the first payment of
principal occur on December 31, 2016.
The proposed budget that was reviewed with City Council at the budget workshop
provides for a one year postponement of this first principal payment. This was
City Council Agenda Report
June 21, 2016
Page 7 of 8
necessary due to higher than expected Water Operations Fund expenses for Fiscal
Year 2016-17, including higher than normal legal expenses, an increase in the cost of
imported water, reduced revenue as a result of the City's water conservation program,
and the delayed full financial benefits of the City's five-year phase-in of the water rate
increases that began on July 1, 2014. These conditions are expected to be sufficiently
mitigated in Fiscal Year 2017-18, to allow for the commencement of principal payments
to the Sewer Funds at that time. This one year delay in repayment of the loan will not
interfere with the ability of the Sewer Funds to fund the projects and activities needed
for Fiscal Year 2016-17.
Accordingly, Attachment 9 to this agenda report is a resolution amending the dates of
repayment associated with this loan to conform to the proposed budget.
FISCAL IMPACT:
The fiscal impact of the Proposed Operating Budgets for Fiscal Years 2016-17 and
2017-18 on each fund of the City is summarized in Attachment 1. The fiscal impact of
the Proposed Seven-Year Capital Improvement Program for Fiscal Years 2016-17
through 2022-23 is summarized in Attachment 2.
ENVIRONMENTAL IMPACT:
Not applicable.
PRIOR CITY COUNCIL REVIEW:
■ On May 23, 2016, the City Council reviewed the Proposed Operating Budgets for
Fiscal Years 2016-17 and 2017-18 and the Proposed Seven-Year Capital
Improvement Program for Fiscal Years 2016-17 through 2022-23 during a budget
workshop and directed staff to prepare the Proposed Budgets for adoption with
no changes other than to remove the Trabuco Creek Multi-use Trail Connection
Project (CIP 16205).
COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS:
• On May 17, 2016, the Utilities Commission reviewed the Proposed Budgets
applicable to the Water and Sewer Enterprise Funds and recommended that the
City Council approve the proposed budgets for the Water and Sewer Enterprise
Funds.
NOTIFICATION:
Not applicable.
City Council Agenda Report
June 21, 2016
Page 8 of 8
ATTACHMENTS:
Attachment 1 — Resolution Adopting the Fiscal Years 2016-17 and 2017-18 Operating
and Capital Budgets.
Attachment 2 — Resolution Adopting the Seven-Year Capital Improvement Program for
Fiscal Years 2016-17 through 2022-23.
Attachment 3 — Resolution Establishing the Fiscal Year 2016-17 Appropriations
Limitation.
Attachment 4 — Resolution Establishing the Property Tax Rate for the Open Space
(Measure D-1990) General Obligation 1998 Refunding Bonds
Attachment 5 — Resolution Establishing the Property Tax Rate for the Open Space
(Measure Y-2008) General Obligation Bonds, Series 2009A for Fiscal
Year 2016-17
Attachment 6 — Second Amendment to Agreement with Boys and Girls Clubs of
Capistrano Valley
Attachment 7 — Resolution to Conform Salaries of Part-time Employees to City's MOU
Attachment 8 — Resolution Regarding Reserve Policy
Attachment 9 —Amended Loan from Sewer Fund to Water Fund
Attachment 10 — Revised Investment Policy
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA ADOPTING THE FISCAL YEARS 2016-17
AND 2017-18 OPERATING AND CAPITAL IMPROVEMENT BUDGETS
AND AUTHORIZING EXPENDITURES AND APPROPRIATIONS RELATED
THERETO
WHEREAS,the City Council of the City of San Juan Capistrano held a Budget
Workshop on May 23, 2016, to review the recommendations for the Proposed Fiscal Years
2016-17 and 2017-18 Operating Budget and the Proposed Seven-Year Capital
Improvement Program for Fiscal Years 2016-17 through 2022-23; and,
WHEREAS, the Proposed Fiscal Years 2016-17 and 2017-18 Operating and
Capital Budgets are the basis for the financial and economic implementation of the City's
General Plan; and,
WHEREAS, the Proposed Fiscal Years 2016-17 and 2017-18 Operating and
Capital Budgets provide for service levels necessary to respond to the needs of the
community and which are deemed appropriate by the City Council, and concurrently
provides a work force to fill these service needs; and,
WHEREAS, the City Council held a Strategic Planning Workshop on April 4,
2016, to provide staff with direction on the City Council's priorities for the next two fiscal
years and intends to use the Proposed Fiscal Years 2016-17 and 2017-18 Operating and
Capital Budgets as a guide for the allocation of resources to accomplish these priorities;
and,
WHEREAS,the City Council recognizes that the Proposed Fiscal Years 2016-
17 and 2017-18 Operating and Capital Budgets will require adjustments from time to time,
and accordingly,the City Manager is authorized to execute necessary transfers to carry out
the scope of services as approved.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Juan Capistrano does hereby determine as follows:
1. That the Proposed Fiscal Years 2016-17 and 2017-18 Operating and
Capital Budgets as shown in Exhibit A attached hereto and incorporated by reference
herein and as detailed in the Budget Document on file with the City Clerk's Office entitled
"City of San Juan Capistrano Budget—Fiscal Years 2016-17 and 2017-18"are adopted as
follows:
1
ATTACHMENT 1
Fiscal Year 2016-2017
Transfers
Operating Capital Between
Expenditures Expenditures Funds(1) Total
General Fund $25,574,578 $ 985,035 $26,559,613
Other Governmental Funds 3,858,520 4,925,000 579,195 9,362,715
Enterprise Funds 21,290,631 4,267,000 4,496,960 30,054,591
Internal Service Funds 9,075,265 152,000 9,227,265
Total All City Funds(Z) $59,798,994 $ 9,344,000 $6,061,190 $75,204,184
Fiscal Year 2017-2018
Transfers
Operating Capital Between
Expenditures Expenditures Funds(1) Total
General Fund $26,185,949 $ 985,921 $27,171,870
Other Governmental Funds 3,909,702 4,263,550 454,195 8,627,447
Enterprise Funds 20,770,366 4,012,000 4,470,360 29,252,726
Internal Service Funds 9,762,811 152,000 9,914,811
Total All City Funds(2) $60,628,828 $ 8,427,550 $5,910,476 $74,966,854
Transfers between funds are balanced by fund types,general and governmental funds and enterprise funds.
(z) Totals do not include the San Juan Capistrano Public Financing Authority and San Juan Capistrano Housing
Authority(See Exhibit A to the Resolution).
2. That total appropriations for each fund may only be increased or
decreased by the City Council by amending the budget except as provided
herein.
3. That the legal level of budgetary control is at the fund level. Budgets may
not legally be exceeded at the fund level without appropriate authorization by
the City Council. Budgeted amounts for individual classifications within a fund
may be exceeded as long as the total annual budget for that fund is not
exceeded.
4. That the following controls are hereby placed on the transfers of budgeted
funds:
a. The City Manager may authorize transfers of funds from account to
account within any operating department up to $50,000.
2
ATTACHMENT 1
b. The City Manager may authorize transfers of funds from department
to department within any fund up to $50,000.
c. The City Manager may delegate the authority to make budget
transfers and adjustments.
d. The City Manager may authorize budget adjustments involving
offsetting revenues and expenditures; the City Manager may authorize
increases in an appropriation for a specific purpose where the
appropriation is offset by unbudgeted revenues, which are designated for
said specific purpose.
5. That all appropriations for outstanding encumbrances and projects
currently underway and remaining unexpended at June 30, 2016, and June
30, 2017, as approved by the City Manager or her designee, are hereby
appropriated to the Fiscal Years 2016-17 and 2017-18 Operating Budget,
respectively.
PASSED, APPROVED, AND ADOPTED this 21 st day of June 2016.
PAM PATTERSON, ESQ., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
3
ATTACHMENT 1
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2016/17
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/2016 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Adjustments 6/30/2017 %
GENERAL FUNDS
General Fund
Unassigned-Contingency $ 11,533,016 $ 26,043,310 $ (25,554,578) $ - $ 579,195 $ (985,035) $ 80,000 $ 11,695,908 45.1%
Assigned-Tuition Reimbursement Program 35,000 - - - 35,000
Assigned-Future Capital Projects 2,000,000 - 2,000,000
Non-Spendable-Loan to Friends of the Library 10,065 10,065
Non-Spendable-Loans to CRA 1,929,879 - (20,000) (80,000) 1,829,879
Total General Fund 15,507,960 26,043,310 (25,574,578) 579,195 (985,035) 15,570,852
Parking Maintenance Fund
Assigned-Parking Maintenance 168,107 63,800 (140,380) 76,705 168,232
Successor Agency to the CRA/Housing
Authority Administration Fund
Unassigned 116,776 253,545 (253,545) 116,776
Farm Operations Fund
Assigned-Farm Operations 204,662 115,300 (31,845) 288,117
Eastern Open Space Fund
Unassigned 361,765 229,800 (211,840) - 379,725
GENERAL FUNDS-TOTAL 5 16,359,270 $ 26,705,755 $ (26,212,188) $ 5 655,900 $ (985,035) $ $ 16,523,702
Special Revenue Funds
Systems Development/Ord.211 Fund
Committed-Capital Projects $ 116,078 $ 746,640 $ $ (154,000) $ $ 708,718
m
X Park and Recreation Fund
= Committed-Capital Projects 968,754 862,775 (584,000) 1,247,529
W_
--I Drainage Fund
D Committed-Capital Projects (341,622) 31,300 (310,322)
vAgricultural Preservation Fund
N Committed-Capital Projects 961,131 113,525 (515,000) 559,656
O Landscape Maintenance Fund
o Committed-Landscape Maintenance 190,681 177,300 (177,105) 190,876
CDBG/HOME Fund
Restricted-Affordable Housing 300,427 168,695 (143,450) 325,672
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2016/17
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cant.
Balance Revenues Expenditures Expenditures In Out Balance Res,
7/1/2016 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Adjustments 6/3012017 %
Gas Tax Fund
Restricted-Street Rehabilitation and Maintenance 133,584 753,190 - (366,000) (469,000) 51,774
CCFP Fund
Committed-Capital Projects 4,512,891 605,655 (135,000) 4,983,546
S.O.N.G.S.Fund
Restricted-Emergency Preparedness - 196,600 (196,600) -
AQMD Fund
Restricted-Mobile Source Emission Reduction 205,005 46,290 (127,000) (10,195) 114,100
Measure M Fund
Restricted-Capital Projects 50,915 669,455 (670,000) - 50,370
Housing In-Lieu Fee Fund
Committed-Capital Projects 3,160,199 909,000 4,069,199
Non-Spendable-LT Receivable 950,000 950,000
Total Housing In-Lieu Fund 4,110,199 909,000 - 5,019,199
Local Law Enforcement Grants Fund
Restricted-Law Enforcement 100,000 (100,000)
Park and Open Space Grant Fund
Restricted-Capital Projects
Street and Highways Grant Fund
Restricted-Capital Projects 175,000 (175,000)
Other Grants Fund
ffl Restricted-Capital Projects
X
=
SPECIAL REVENUE FUNDS.TOTAL $ 11,208,043 S 5,555,425 5 (517,1SS) S (2,726,000) $ S (579,195} $ $ 12,941,118
Debt Service Fund
D Restricted-Debt Service S 2,133,459 2.4SS,90D S (2,703,75S) S - 5 303.331) S s" $ 2,193,934
Sv
to Capital Improvement Funds
CD
N
O General Proiect Fund
Assigned-Capital Projects $ - $ $ $ (600,000) $ 600,000 $ $ $ -
0
Open Space Bond Projects Fund
Restricted-Open Space Projects 428,778 2,500 (428,000) 3,278
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2016/17
Projected Projected
Beginning Operating CIPTransfers Transfers Ending Cant.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/2016 FY 2017 FY 2017 FY 2017 FY 2017FY 2027 Ad ustments 6/30/2017 %
Community Facilities District Bonds Fund
Restricted-Community Facilities Projects - 1,171,000 - (1,171,000) - - -
Successor Agency Non-Housing Bonds Fund
Restricted-Redevelopment Projects 8,314 - - 8,314
CAPITAL PROJECTS FUNDS-TOTAL $ 437,092 $ 1,173,S00 $ - $ (2,199,000) S 600,000 $ - $ - $ 11,592
GENERAL GOVERNMENTAL FUNDS-TOTAL $ 30,137,564 $ 35,890,580 S (29,433,09S) S (4,925,000) $ 1,564,230 S (1,564,230) S - $ 31,670,346
ENTERPRISE FUNDS
Water Enterprise Funds
Water Operations Fund
Unrestricted Net Assets-Contingency $ 1,487,794 $ 13,931,220 $ (10,491,962) $ $ $ (1,447,995) $ $ 3,479,057 29.1%
Unrestricted Net Assets-Loan Due to Sewer Funds (3,603,471) - (3,603,471)
Unrestricted Net Assets-Pension Liabilities (6,062,904) (6,062,904)
Unrestricted Net Assets-Other 1,832,457 1,832,457
Investment in Capital Assets 62,732,360 - 62,732,360
Total Water Operations Fund 56,386,236 13,931,220 (10,491,962) (1,447,995) 58,377,499
Water Debt Service Fund
Unrestricted Net Assets-Available 77,652 1,036,865 (4,392,825) $ 3,355,960 $ $ 77,652
Unrestricted Net Assets-2014A Water Refunding Bonds (19,922,771) (19,922,771)
Restricted Cash-2014A Water Refunding Bonds 8,201 8,201
Restricted Net Assets-Rate Stabilization 1,296,425 - 1,296,425 29.5%
ffl Total Water Debt Service Fund (18,540,493) 1,036,865 (4,392,825) 3,355,960 (18,540,493)
X
_2 GWRP Operations Fund
Co Unrestricted Net Assets-Available (2,912,642) 3,195,650 (2,434,680) - (1,907,965) (4,059,637)
D Unrestricted Net Assets-Pension Liabilities (667,310) - (667,310)
Investment in Capital Assets 1,725,031 1,725,031
<a) Total GWRP Operations Fund (1,854,921) 3,195,650 (2,434,680) (1,907,965) (3,001,916)
rD
W Non-Potable Water Operations Fund
0 Unrestricted Net Assets-Available 51,805 1,270,250 (628,355) (641,000) 52,700 8.4%
p Unrestricted Net Assets-Pension Liabilities _ _(291,394) - - - - (291,394)
Total Non-Potable Water Operations Fund (239,589) 1,270,250 (628,355) (641,000) (238,694)
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2016/17
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/203.6 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Adjustments 6/30/2017 %
Water Capital Replacement Fund
Unrestricted Net Assets-Available 648,450 13,160 - (380,000) - - 281,610
Water Capital Improvement Fund
Unrestricted Net Assets-Available 2,198,014 917,025 (1,126,000) - 1,989,039
Non-Potable Water Capital Improvement Fund
Unrestricted Net Assets-Available (374,362) 172,620 (476,000) 641,000 (36,742)
SJC Public Financing Authority
Unrestricted Net Assets-Available 793,545 (793,545) -
Restricted Cash-2009 COPs 802,623 - 802,623
Unrestricted Net Assets-2009 COPs (9,833,314) - (9,833,314)
Total SJC Public Financing Authority (9,030,691) 793,545 (793,545) - - (9,030,691)
WATER ENTERPRISE FUNDS-TOTAL $ 29,192,644 $ 21,330,335 $ (18,741,367) $ 1,982,000) $ 3,996,960 $ (3,946,960) $ $ 29,799,612
Sewer Enterprise Funds
Sewer Enterprise Operations Fund
Unrestricted Net Assets-Contingency $ 1,276,691 $ 3,456,790 $ (3,282,809) $ $ - $ (500,000) $ $ 950,672 29.0%
Unrestricted Net Assets-Loan to Water Operations Fund 1,801,735 - 1,801,735
Unrestricted Net Assets-Pension Liabilities (380,183) (380,183)
Investment in Capital Assets 15,081,920 - 15,081,920
Total Sewer Operations Fund 17,780,163 3,456,790 (3,282,809) - (500,000) 17,454,144
Sewer Capital Replacement Fund
Unrestricted Net Assets-Available 351,281 23,390 (625,000) 500,000 - 249,671
IT1 Sewer Capital Improvement Fund
X
2 Unrestricted Net Assets-Available 743,517 1,038,295 (1,660,000) - 240,000 361,812
W Unrestricted Net Assets-Loan to Water Operations Fund 1,801,736 - 1,801,736
Unrestricted Net Assets-Loans to CRA 1,196,947 (60,000) (240,000) 896,947
D Total Sewer Capital Improvement Fund 3,742,200 1,038,295 (60,000) (1,660,000) 3,060,495
m SEWER ENTERPRISE FUNDS-TOTAL $ 71,873,644 $ 4,S18,475 $ {3,342,809) $ (2,285,000) $ 500,000 $ (500,000) $ $ 20,764,310
u?
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CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2016/17
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/2916 FY 2017 FY 2017 FY 2017 FY 2017 FY 2017 Adjustments 6/30/2017 %
SJC HOUSING AUTHORITY
Housing Authority Administration Fund
Unrestricted Net Assets-Contingency Reserve $ 86,188 $ 242,600 $ (45,050) $ $ - $ $ (261,213) $ 22,525 50.0%
Unrestricted Net Assets-Available 625,270 - 261,213 886,483
Non-Spendable-Noncurrent Receivables 4,937,218 4,937,218
Investment in Capital Assets 5,092,110 5,092,110
Total Housing Authority Administration Fund 10,740,786 242,600 (45,050) - - 10,938,336
Little Hollywood Rental Housing Fund
Unrestricted Net Assets-Contingency Reserve 73,995 213,500 (186,690) (7,460) 93,345 50.0%
Unrestricted Net Assets-Available 533,343 - 7,460 540,803
Total Little Hollywood Rental Housing Fund 607,338 213,500 (186,690) - 634,148
Successor Agency Housing Bonds Fund
Restricted-Affordable Housing Projects 6,709,433 25,000 (29,960) 6,704,473
SJC HOUSING AUTHORITY-TOTAL S 18,057,557 $ 481,100 $ (261,700) $ $ $ $ $ 18,276,957
ENTERPRISE FUNDS-TOTAL S 69,123,845 $ 26,329,910 $ (22,345,876) $ (4,267,000) $ 4,496,960 $ (4,496,960) S $ 68,840,879
INTERNAL SERVICE FUNDS
Insurance and Benefits Fund
Unrestricted Net Assets-Available $ (74,808) $ 6,552,220 $ (6,552,220) $ $ $ $ $ (74,808)
Facilities Operations Fund
Unrestricted Net Assets-Available 2,070,046 1,991,750 (2,111,045) (152,000) 11798,751
M
X Unrestricted Net Assets-Pension Liabilities (584,136) - (584,136)
= Investment in Capital Assets 2,980.551 (412,000) 2,568,551
ED Total Facilities Operations Fund 4,466,461 1,991,750 (2,523,045) (152,000) 3,783,166
D INTERNAL SERVICE FUNDS-TOTAL $ 4,391,653 $ 8,543,970 $ (9,075,265) S (152,000) S - $ $ $ 3,708,358
(Q ALL FUNDS-TOTAL $ 103,653,362 S 70,764,460 .$ (60,854,239) $ (9,344,000) S 6,061,190 $ (6,061,190) S - S 104,319,583
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0 Less:
San Juan Capistrano Public Finance Authority 793,545
C) San Juan Capistrano Housing Authority 261,700
Total Appropriations Approved by City Council $ (59,798,994) $ (9,344,000) $ (6,061,190)
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2017/18
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/2017 FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 Adjustments 6130/2018 Y.
GENERALFUNDS
General Fund
Unassigned-Contingency $ 11,695,908 $ 26,806,650 $ (26,185,949) $ - $ 454,195 $ (985,921) $ $ 11,784,883 44.6%
Assigned-Tuition Reimbursement Program 35,000 - 35,000
Assigned-Future Capital Projects 2,000,000 2,000,000
Non-Spendable-Loan to Friends of the Library 10,065 10,065
Non-Spendable-Loans to CRA 1,829,879 - - 1,829,879
Total General Fund 15,570,852 26,806,650 (26,185,949) 454,195 (985,921) 15,659,827
Parking Maintenance Fund
Assigned-Parking Maintenance 168,232 63,800 (141,618) 77,941 168,355
Successor Agency to the CRA/Housing
Authority Administration Fund
Unassigned 116,776 261,077 (261,077) - 116,776
Farm Operations Fund
Assigned-Farm Operations 288,117 115,300 (32,212) 371,205
Eastern Open Space Fund
Unassigned 379,725 229,800 (214,747) - 394,778
GENERAL FUNDS-TOTAL $ 16,523,702 $ 27,476,627 $ 126,835,603) $ $ 532,136 $ (985,921) $ $ 16,710,941
Special Revenue Funds
Systems Development/Ord.211 Fund
Committed-Capital Projects $ 708,718 $ 994,985 $ $ (376,000) $ $ $ $ 1,327,703
ffl Park and Recreation Fund
X
2 Committed-Capital Projects 1,247,529 863,810 (853,000) 1,258,339
D7
-i Drainage Fund
D Committed-Capital Projects (310,322) 62,990 (247,332)
m
Agricultural Preservation Fund
cc Committed-Capital Projects 559,656 144,785 704,441
CDrn
p Landscape Maintenance Fund
Committed-Landscape Maintenance 190,876 216,158 (215,966) 191,068
0
CDBG/HOME Fund
Restricted-Affordable Housing 325,672 168,695 (143,702) 350,665
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2017/18
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/2017 FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 Adjustments 6/30/2018
Gas Tax Fund
Restricted-Street Rehabilitation and Maintenance 51,774 760,655 - (411,000) - (344,000) 57,429
CCFP Fund
Committed-Capital Projects 4,983,546 2,060,545 (598,775) 6,445,316
S.O.N.G.S.Fund
Restricted-Emergency Preparedness 196,600 (196,600)
AQMD Fund
Restricted-Mobile Source Emission Reduction 114,100 46,320 (72,000) (10,195) 78,225
Measure M Fund
Restricted-Capital Projects 50,370 704,115 (754,000) 485
Housing In-Lieu Fee Fund
Committed-Capital Projects 4,069,199 329,000 4,398,199
Non-Spendable-LT Receivable 950,000 950,000
Total Housing In-Lieu Fund 5,019,199 329,000 - 5,348,199
Local Law Enforcement Grants Fund
Restricted-Law Enforcement 100,000 (100,000) -
Park and Open Space Grant Fund
Restricted-Capital Projects
Street and Highways Grant Fund
Restricted-Capital Projects 598,775 (598,775)
Other Grants Fund
m Restricted-Capital Projects - -
X
= SPECIAL REVENUE FUNDS-TOTAL $ 12,941,118 $ 7,247,433 $ (556,268) $ (3,663,550) $ $ (454,195) $ $ 15,514,538
W
Debt Service Fund
D Restricted-Debt Service $ 2,193,934 $ 2,451,717 $ (2,703,780) S - $ 307,980 $ $ $ 2,249,851
v
Capital Improvement Funds
m
O General Project Fund
Assigned-Capital Projects $ - $ $ $ (600,000) $ 600,000 $ $ $
0
Open Space Bond Projects Fund
Restricted-Open Space Projects 3,278 2,500 - 5,778
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2017/18
Projected Projected I
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res,
7/1/x017 FY 2018 FY 201$ FY 2018 FY 2018 FY 2018 Adjustments 6/30/2018 %
Community Facilities District Bonds Fund
Restricted-Community Facilities Projects - -
Successor Agency Non-Housing Bonds Fund
Restricted-Redevelopment Projects 8,314 - 8,314
CAPITAL PROJECTS FUNDS-TOTAL S 11,592 S 2,500 $ $_A600,000) $ 600,000 $ $ $ 14,092
GENERAL GOVERNMENTAL FUNDS-TOTAL S 31,670,346 $ 37,178,277 $ (30,095,651) $ (4,263,550) $ 1,440,116 $ (1,440,116) $ S 34,489,422
ENTERPRISE FUNDS
Water Enterprise Funds
Water Operations Fund
Unrestricted Net Assets-Contingency $ 3,479,057 $ 14,607,530 $ (10,276,326) $ $ $ (1,416,645) $ (1,430,000) $ 4,963,616 37.8%
Unrestricted Net Assets-Loan Due to Sewer Funds (3,603,471) 1,430,000 (2,173,471)
Unrestricted NetAssets-Pension Liabilities (6,062,904) - (6,062,904)
Unrestricted Net Assets-other 1,832,457 1,832,457
Investment in Capital Assets 62,732,360 - 62,732,360
Total Water Operations Fund 58,377,499 14,607,530 (10,276,326) (1,416,645) 61,292,058
Water Debt Service Fund
Unrestricted Net Assets-Available 77,652 1,072,560 (4,395,920) 3,323,360 77,652
Unrestricted NetAssets-2014A Water Refunding Bonds (19,922,771) - (19,922,771)
Restricted Cash-2014A Water Refunding Bonds 8,201 8,201
Restricted Net Assets-Rate Stabilization 1,296,425 - - 1,296,425 29.5%
fn Total Water Debt Service Fund (18,540,493) 1,072,560 (4,3950920) 3,323,360 (18,540,493)
X
2 GWRP Operations Fund
W Unrestricted Net Assets-Available (4,059,637) 3,336,950 (2,100,265) - (1,906,715) (4,729,667)
D Unrestricted NetAssets-Pension Liabilities (667,310) (667,310)
' Investment in Capital Assets 1,725,031 1,725,031
v Total GWRP Operations Fund (3,001,916) 3,336,950 (2,100,265) (1,906,715) (3,671,946)
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0 Unrestricted Net Assets-Available 52,700 1,278,500 (630,028) (647,000) 54,172 8.6%
O Unrestricted Net Assets-Pension Liabilities (291,394) - - - - (291,394)
Total Non-Potable Water Operations Fund (238,694) 1,278,500 (630,028) (647,000) (237,222)
CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2017/18
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res.
7/1/2017 FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 Adjustments 6/30/2018 %
Water Capital Replacement Fund
Unrestricted Net Assets-Available 281,610 13,290 - (250,000) 44,900
Water Capital Improvement Fund
Unrestricted Net Assets-Available 1,989,039 1,118,855 (612,000) 2,495,894
Non-Potable Water Capital Improvement Fund
Unrestricted Net Assets-Available (36,742) 365,610 (595,000) 647,000 380,868
SJC Public Financing Authority
Unrestricted Net Assets-Available 795,445 (795,445) - -
Restricted Cash-2009 COPS 802,623 802,623
Unrestricted Net Assets-2009COPs (9,833,314) - (9,833,314)
Total SJC Public Financing Authority (9,030,691) 795,445 (795,445) - - (9,030,691)
WATER ENTERPRISE FUNDS-TOTAL $ 29,799,612 $ 22,588,740 $ (18,197,984) $ (1,457,000) $ 3,970,360 $ (3,970,360) $ $ 32,733,368
Sewer Enterprise Funds
Sewer Enterprise Operations Fund
Unrestricted Net Assets-Contingency $ 950,672 $ 3,456,790 $ (3,367,827) $ $ - $ (500,000) $ 715,000 $ 1,254,635 37.39
Unrestricted Net Assets-Loan to Water Operations Fund 1,801,735 - (715,000) 1,086,735
Unrestricted NetAssets-Pension Liabilities (380,183) - - (380,183)
Investment in Capital Assets 15,081,920 15,081,920
Total Sewer Operations Fund 17,454,144 3,456,790 (3,367,827) - (500,000) 17,043,107
Sewer Capital Replacement Fund
Unrestricted Net Assets-Available 249,671 23,625 (650,000) 500,000 - 123,296
M Sewer Capital Improvement Fund
X
2 Unrestricted Net Assets-Available 361,812 1,534,185 (1,905,000) 715,000 705,997
Co Unrestricted Net Assets-Loan to Water Operations Fund 1,801,736 (715,000) 1,086,736
::i Unrestricted Net Assets-Loans to CRA 896,947 896,947
D Total Sewer Capital Improvement Fund 3,060,495 1,534,185 (1,905,000) 2,689,680
v SEWER ENTERPRISE FUNDS-TOTAL $ 20,764,310 $ 5,014,600 $ (3,367,827) $ (2,555,000) $ 500,000 $ ISOO,000) $ $ 19,856,083
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CITY OF SAN JUAN CAPISTRANO
BUDGET SUMMARY-ALL FUNDS
FISCAL YEAR 2017/18
Projected Projected
Beginning Operating CIP Transfers Transfers Ending Cont.
Balance Revenues Expenditures Expenditures In Out Balance Res-
7/1/2017 FY 2018 FY 2018 FY 2018 FY 2018 FY 2018 Adjustments 6/30/2018 %
SJC HOUSING AUTHORITY
Housing Authority Administration Fund
Unrestricted Net Assets-Contingency Reserve $ 22,525 $ 162,600 $ (50,000) $ $ $ $ (110,125) $ 25,000 50.0%
Unrestricted Net Assets-Available 886,483 110,125 996,608
Non-Spendable-Noncurrent Receivables 4,937,218 - 4,937,218
Investment in Capital Assets 5,092.,110 5,092,110
Total Housing Authority Administration Fund 10,938,336 162,600 (50,000) 11,050,936
Little Hollywood Rental Housing Fund
Unrestricted Net Assets-Contingency Reserve 93,345 213,500 (179,422) (37,723) 89,700 50.0%
Unrestricted Net Assets-Available 540,803 37,723 578,526
Total Little Hollywood Rental Housing Fund 607,338 213,500 (179,422) - 668,226
Successor Agency Housing Bonds Fund
Restricted-Affordable Housing Projects 6,704,473 25,000 (30,200) 6,699,273
S)C HOUSING AUTHORITY-TOTAL $ 18,250,147 $ 401,100 $ (259,622) $ $ $ $ $ 18,418,495
ENTERPRISE FUNDS-TOTAL $ 68,814,069 $ 28,004,440 $ (21,825,433) $ (4,012,000) S 4,470,360 $ (4,470,360) $ S 71,007,886
INTERNAL SERVICE FUNDS
Insurance and Benefits Fund
Unrestricted Net Assets-Available $ (74,808) $ 6,871,135 $ (6,871,135) $ - $ $ $ $ (74,808)
Facilities Operations Fund
IT! Unrestricted Net Assets-Available 1,798,751 2,052,375 (2,479,676) (152,000) 1,219,450
X Unrestricted NetAssets-Pension Liabilities (584,136) (584,136)
2
pp Investment in Capital Assets 2,568,551 (412,000) 2,156,551
I Total Facilities Operations Fund 3,783,166 2,052,375 (2,891,676) (152,000) - 2,791,865
D
INTERNAL SERVICE FUNDS-TOTAL $ 3,708.358 S 8,523,510 5 (9,762,811) $ (152,000) $ $ $ $ 2,717,057
ALLFUNDS-TOTAL $ 104,192,773 $ 74,106,227 $ (61,683,895) $ (8,427,550) S 5,910,476 $ (5,910,476) $ $ 108,214,365
O Less:
0
San Juan Capistrano Public Finance Authority 795,445
o San Juan Capistrano Housing Authority 259,622
Total Appropriations Approved by City Council 5 (60.628,828) 5 (8.427,550) 5 (5.910.476)
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA ADOPTING THE SEVEN-YEAR CAPITAL
IMPROVEMENT PROGRAM FOR FISCAL YEARS
2016-17 THROUGH 2022-23
WHEREAS, the City Council of the City of San Juan Capistrano held a public workshop
on May 23, 2016, to consider the Proposed Seven-Year Capital Improvement Program for
Fiscal Years 2016-17 through 2022-23; and,
WHEREAS, the proposed Seven-Year Capital Improvement Program (CIP) is
considered a planning document and provides spending authority for the projects that are
necessary to meet the needs of the community; and,
WHEREAS, the City Council intends to use the Seven-Year CIP as a guide for the
allocation of resources to meet the needs of the community and achieve the City Council's
established goals and priorities; and,
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Juan
Capistrano does hereby adopt the Seven-Year Capital Improvement Program for Fiscal Years
2016-17 through 2022-23 as shown in Exhibit A attached hereto and incorporated by reference
and as follows:
Project
Fiscal Year Expenditures
2016-17 $ 9,344,000
2017-18 8,427,550
2018-19 15,680,500
2019-20 6,986,000
2020-21 7,970,000
2021-22 5,123,000
2022-23 7,976,000
TOTAL $ 61,507,050
The Fiscal Years 2016-17 and 2017-2018 project expenditures have been adopted as part of the Fiscal
Years 2016-17 and 2017-2018 Operating and Capital Budgets of the City of San Juan Capistrano.
PASSED, APPROVED, AND ADOPTED this 21st day of June 2016.
PAM PATTERSON, ESQ., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
ATTACHMENT 2
City of San Juan Capistrano
2016-2023 CIP PROJECT SUMMARY BY TYPE
PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
PROJECT 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 TOTAL
TRANSPORTATION
xx105-Local Streets Pavement Rehabilitation $ 1,120,000 $ 996,000 $ 1,063,500 $ 1,224,000 $ 1,259,000 $ 1,294,000 $ 1,327,000 $ 8,283,500
xx109-Arterial Street Major Rehabilitation Program 516,000 561,000 618,000 626,000 650,000 631,000 649,000 4,251,000
07117-1-5/San Juan Creek Road Underpass Improvements 7,140,000 7,140,000
11101-Citywide Sign Replacement Program 173,000 280,000 453,000
15102-Neighborhood Traffic Calming Projects 72,000 72,000 144,000
15103-Countdown Pedestrian Signals 55,000 55,000
16101-Traffic Signal Cabinet Upgrades 208,000 125,000 333,000
16102-Del Obispo Street Widening Project 300,000 1,197,550 1,497,550
16104-Ortega/Del Obispo New Left Turn 10,000 10,000
17101-Vista Montana Pedestrian Improvements 50,000 50,000
SUBTOTAL $ 2,123,000 $ 3,207,550 $ 9,226,500 $1,850,000 $ 1,909,000 $1,925,000 $ 1,976,000 $ 22,217,05D
PARKS AND OPEN SPACE
07204-Citywide Trail Improvements $ 70,000 $ 75,000 $ 75,000 $ 75,000 $ 295,000
09203-Citywide Playground Upgrades 126,000 106,000 106,000 106,000 106,000 106,000 78,000 734,000
09209-Northwest Open Space Community Park 1,780,000 1,780,000
16201-Cook La Novia Park Picnic Area Enhancements 175,000 175,000
16203-Malaspina Trail Connection Project 277,000 277,000
xxxxx-Riding Park Fire Flow and Recycled Water Supply Project 515,000 515,000
xxxxx-Arte Park Renovation 75,000 75,000
xxxxx-Parks and Recreational Needs Assessment Report 97,000 97,000
xxxxx-Los Rios Phase 11 Improvements 330,000 1,300,000 1,630,D00
SUBTOTAL $ 2,698,000 $ 853,000 $ 1,481,000 $ 106,000 $ 181,000 $ 106,000 $ 153,000 $ 5,578,000
BUILDINGS AND FACILITIES
15306-ADA Self Evaluation and Transition Plan Implementation $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 152,000 $ 1,06400
M xxxxx-EI Camino Real Parkway Safety Lighting 35,000 35,000
X xxxxx-Historic Town Center Park Storage Facility 165,000 165,000
= SU8TOTAL $ 152,000 S 152,000 $ 352,GD0 $ 152,000 $ 152,000 $ 152,000 $ 1S2,000 $ 1,264,D00
W
D DRAINAGE
' 15501-Camino Capistrano Storm Drain,Del Obispo Street to San Juan Creek $ 50,000 $ 110,000 $ 160,000
N15503-Calle Arroyo and Sundance Drive Drainage Improvements 54,000 110,000 164,000
N 15504-San Juan Creek Road at Calle Caballero Drainage Improvements 55,000 130,000 185,000
15505-La Novia and Camino La Ronda Drainage Improvements 38,000 89,000 127,000
xxxxx-Avenida Aeropuerto at Calle Aviador&Calle Perfecto Drainage Improvements 62,000 78,000 170,000 170,000 480,DOD
N SUBTOTAL 104,000 $ 203,000 $ 391,000 $ 78,000 $ 170,000 $ 170,000 $ - $ 1,116,000
PROJECT 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 TOTAL
WATER
08801-Joint Regional Water Supply System Capital Replacements $ 20,000 $ 20,000 $ 620,000 $ 145,000 $ 187,000 $ 100,000 $ 100,000 $ 1,192,000
08804-Pump Station Component Replacements 55,000 1,000,000 1,055,000
11805-1-5 Utility Relocation 150,000 150,000
16801-La Pat@ Pipeline Relocation 472,000 472,000 205,000 1,149,000
xxxxx-San Juan Hills Greens Cathodic Protection System 184,000 184,000
xxxxx-7605 Zone Pump Station Discharge Line Replacement 25,000 50,000 110,000 880,000 1,065,000
xxxxx-Valve Insertion Program 100,000 100,000 100,000 100,000 100,000 500,000
xxxxx-Capistrano Royale Fire Flow Pump 180,000 180,000
xxxxx-Palletization and Space Consolidation 40,000 40,000 80,000
xxxxx-Water Facility Control Systems 200,000 200,000 400,000
xxxxx-Well Facility Equipment Replacement Program 140,000 100,000 240,000
xxxxx-System Repairs and Upgrade of Appurtenances 100,000 1,000,000 1,100,000
xxxxx-San Juan Hills Greens Pipeline Replacement 2,300,000 2,300,$00
SUBTOTAL $ 1,566,000 $ 882,000 $ 1,035,000 $ 445,000 $ 1,167,000 $1,100,000 $ 3,400,000 $ 9,595,000
NON-POTABLE WATER
16601-Recycled Water Service Conversions Project $ 150,000 $ 150,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 24,000 $ 420,000
xxxxx-Trampas Canyon Recycled Water Reservoir 101,000 101,000 101,000 101,000 101,000 101,000 101,000 707,000
xxxxx-Recycled Expansion-Grants Application 165,000 165,000
xxxxx-Calle Arroyo Recycled Pipeline 32.4,000 2,306,000 2,630,000
SUBTOTAL $ 416,000 $ S75,000 $ 125,000 $ 125,000 $ 2,431,000 $ 125,000 $ 125,000 $ 3,922,000
SEWER
xx701-Annual Sewer Replacement Program $ 450,000 $ 450,000 $ 500,000 $ 500,000 $ 550,000 $ 550,000 $ 600,000 $ 3,600,000
07701-South Orange County Wastewater Authority PC#2 Rehabilitation 1,460,000 1,755,000 2,470,000 2,310,000 1,410,000 995,000 1,570,000 11,970,000
07703-New Hydraulic Capital Project#6 100,000 200,000 1,400,000 1,700,000
15703-South Orange County Wastewater Authority PC#5 Ocean Outfall Rehabilitation 75,000 150,000 100,000 20,000 345,000
xxxxx-Sewer Flow Metering&SCADA Monitoring Project 200,000 200,000
SUBTOTAL $ 2,285,000 $ 2,555,000 $ 3,070,000 $4,230,00 $ 1,960,000 $ 1,545,000 $ 2,170,000 $ 17,815,000
GRAND TOTAL $ 9,344,000 $ 8,427,550 $15,680,500 $6,986,000 $ 7,970,000 $ 5,173,t)3O $ 7,976,000 T61,07.0501
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City of San Juan Capistrano
CONSOLIDATED CIP FUNDS
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021122 2022/23
BEGINNING FUND BALANCE $ 20,933,173 $ 9,411,514 $ 11,444,592 $ 11,588,597 $ 14,606,987 $ 10,916,992 $ 20,214,497 $ 19,426,087 $ 20,057,107
REVENUES
Revenue/Fees In 5,775,361 12,714,250 5,633,480 8,300,350 8,568,860 11,059,940 2,691,385 2,023,315 1,786,910
Current year project funding 49,434 478,360 1,454,000 824,000 952,000 752,000 752,000 752,000 752,000
Project Specific Grants 1,785,320 23,760 175,000 598,775 -
Interest Earned 189,192 98,120 171,535 172,895 153,585 147,470 148,870 142,780 144,210
Other Reimbursements 2,200,901 1,580 1,171,000
Other Revenue 30,085 30,085 30,990 31,920 32,880 33,865 34,880 35,925 37,005
Loan Repayments - - 240,000 715,000 733,180 740,230 754,455
Transfers in/(out) 975,000 2,520,000 672,000 803,000 1.550,DOO 3,550,000 2,800,00D 2,800,000 5,050,000
TOTAL. PROJEM0REVENUES AND OTHER SOURCES $ 11,005,293. $ 15,866,155 $ 9,548,005 $ 11,445,940 $ 11,990,5055 $ 16,283,505 $ 7,181,590 $ 5,754,020 $ 7,770,125
TOTAL FUNDS AVAI LAME $ 31,938,465 $ 25,277,669 $ 20,992,597 $ 23,034,537 $ 26.S97,492 $ 27,200,497 $ 27,396,087 $ 25,180,107 $ 27,827,232
EXPENDITURES
Transportation Projects 1,415,140 1,830,700 2,123,000 3,207,550 9,226,500 1,850,000 1,909,000 1,925,000 1,976,000
Parks and Open Space Projects 622,630 332,000 2,698,000 853,000 1,481,000 106,000 181,000 106,000 153,000
Buildings and Facilities Projects 25,186 301,000 152,000 152,000 352,000 152,000 152,000 152,000 152,000
Historic Preservation Projects 137,587 - -
Drainage Projects 29,059 216,000 104,000 203,000 391,000 78,000 170,000 170,000
Non-Potable Water Projects 250,000 416,000 575,000 125,000 125,000 2,431,000 125,000 125,000
Sewer Projects 1,155,528 2,390,797 2,285,000 2,555,000 3,070,000 4,230,000 1,960,000 1,545,000 2,170,000
Water Projects 981,208 2,186,000 1,566,000 882,000 1,035,000 445,000 1,167,000 1,100,000 3,400,000
Operating Expenditures 914 - 60,000 -
TOTAL EXPENDITURES $ 4,367,252 $ 7,505,497 $ 9,404.000 $ 8,427,550 $ 15,680,500 $ 6,986,000 $ 7,970,000 $ 5,123,000 $ 7,976,000
UNFUNDED PROJECTS
Transportation Projects $ $ $ 2,159,500 $ 555,000 $ 594,500 $ 561,500 $ 604,000 $ 698,000 $ 743,500
Parks and Open Space Projects 200,000 1,800,000 580,000 6,200,000 - -
waFer Projects - 1.500,000 735,000 735.000 735,000 1.735.000 1,735.000 735.000
TOTAL UNFUNCED PROJECTS $ - 5 $ 3,8$9,500 $ 1,290,000 5 3,129,500 1r876,S00, ,y 8,539,000_, ,M 3,900
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FUND 1-GENERAL FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 2,065,420 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000 $ 2,000,000
REVENUES
Current Year ProiectEunding 23,644 60,000 600,000 600,000 635,060 600,000 600,000 500,000 FOo,000
TOTAL- PROJECTED REVENUES AND OTHER SOURCES S 23,694 S 60,000 $ 600,000 S 600,000 $ 635,000 $ 600,000 $ 600,C00 S 600,000 S 600,000
TOTAL REVENUE AVAILABLE S 2,069,114 S 2,060,000 $ 2,600,000 $ 2,600,000 $ 2,63S,000 $ 2,600,000 $ 2,600,000 $ 2,600,000 S 2,600;000
EXPENDITURES
xx105-Local Streets Pavement Rehabilitation 450,000 450,000 450,000 450,000 450,000 450,000 450,000
xx109-Arterial Street Major Rehabilitation Program 150,000 150,000 150,000 150,000 150,000 150,000 150,000
09211-Placida-Habitat Restoration and Monitoring 114
15304-Camino Capistrano Athletic Arena Court Resurfacing 950
15201-Cook Cordova Park Softball Field#1 and
Soccer Field#1 Rehabilitation Project 60,000
xxxxx-EI Camino Real Parkway Safety Lighting 35,000
TOTAL EXPENDITURES $ 1,064 $ 60,000 $ 600,000 $ 600,000 $ 635,000 $ 600,000 $ 600,000 S 600,000 S 600,000
� � �:: � ., ��i iii iir�e� r�� ��� rf•� ��i ��� �i� frr ire r�� ��� ��r rrr
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FUND 10-SYSTEMS DEVELOPMENT
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 518,953 $ 250,506 $ 116,078 $ 708,718 $ 1,327,703 $ 1,265,413 $ 1,736,448 $ 1,715,953 $ 1,626,553
REVENUES
Systems Development Tax 195,948 948,070 719,805 962,915 583,610 514,940 143,385 74,435 21,415
Development Fees-Ord 211 4,240 35,125 22,470 27,660 20,645 29,595 1,575 1,575 525
Grants-Measure M Specific Projects 18,166
I nvestment Interest 3,231 820 1,365 4,410 -5.555 41500 4,545 4,590 4,635
TOTAL• PROJECTED REVENUES AND OTHER SOURCES S 221,585 $ 984,015 S 746,540 $ 994,985 S 608,710 5 549,035 $ 1491505 5 80,600 $ 26,575
TOTAL FUNDS AVAILABLE _ .. $ 740,538 S 3,2.34,521 S 862,718 $ 1,703,703 S L936,413 $ 1,814,448 $ 1,885,953 $ 1,796,553 $ 1,653,128
EXPENDITURES
xx105-1-ocal Streets Pavement Rehabilitation 50,000
07111-EI Camino Real at Don Juan Retaining Wall 97,059
11101-Citywide Sign Replacement Program 88,485 173,000 173,000 280,000
14106-Verdugo Street Beautification Project 2,026
15306-ADA Self Evaluation and Transition Plan 19,000
15501-Camino Capistrano Storm Drain,Del Obispo Street
to San Juan Creek Road 49,000 50,000 110,000
15503-Calle Arroyo and Sundance Drive Drainage Improvements 161,000 54,000 110,000
15504-San Juan Creek Road at Calle Caballero Drainage Improvements 55,000 130,000
15505-La Novia and Camino La Ronda Drainage Improvements 38,000 89,000
17101-Vista Montana Pedestrian Improvements 50,000
xxxxx-Avenida Aeropuerto at Calle Aviador&Calle Perfecto
Drainage Improvements 62,000 78,000 170,000 170,000
X TOTAL EXPENDITURES $ 187,570 $ 452,000 S 154,000 $ 376,000 S 671,000 $ 78,000 $ 170,000 $ 170,000 $ -
= DING FUND BALANCE 5 $52,968 $ 782,521 $ 708,718r
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FUND 11-PARK AND RECREATION
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 817,646 $ 1,154,490 $ 968,754 $ 1,247,529 $ 1,258,339 $ 1,255,179 $ 3,853,649 $ 3,718,709 $ 3,659,924
REVENUES
Park/Recreation Fees 835,200 3,578,160 821,040 821,040 1,434,000 2,659,535
Investment Interest 6,783 4,640 10,745 10,850 10,960 11,070 11,180 11,290 11,405
Other Revenue 30,085 30,085 30.990 31,920 32.880 33,E55 34,88, 35,925 37,005
TOTAL- PRO)FCTED REVENUES AND OTHER SOURCES $ 872,068 $ 3,612,885 $ 862,775 S 863,810 $ 1,477,840 S 2,704,470 $ 46,060 $ 47,215 S 48,410
TOTAL REVENUE AVAILABLE $ 1,689,714 5 4,767,375 S 1,831,,529 $ 2,111,339 $ 2,736,179 S 3,959,649 $ 3.,899,709 $ 3,765,924 $ 3,708,334
EXPENDITURES
07204-Citywide Trail Improvements 75,000 70,000 75,000 75,000 75,000
07403-Blas Aguilar Adobe(Phase C) 21,295
09203-Playground Upgrades 25,387 50,000 126,000 106,000 106,000 106,000 106,000 106,000 78,000
09209-Northwest Open Space Community Park 181,000
11203-Eastern Open Space Trails/Citywide Bikeway Gap Closure 17,194
12201-Reata Park&Event Center 27,930
14501-Los Rios Park Drainage Improvements 6,000
16201-Cook Park-La Novia Picnic Structures 175,000
16202-Cook Cordova Park Playground Equipment Project 91,000
16203-Malaspina Trail Connection Project 56,000 277,000
xxxxx-Arce Park Renovation 75,000
xxxxx-Parks and Recreational Needs Assessment Report 97,000
xxxxx-Los Rios Phase II Improvements 330.000 1,300,000
TOTAL EXPENDITURES _ $ 91,805 5 278,000 $ 584,000 $ 853,000 $ 1.481.,000 $ 106,040 $ 181,040 S 106,OW S 153,000
ENDING-FUND BALANCE $1,597,902 0,
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FUND 12-DRAINAGE FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ (379,153) $ (389,662) $ (341,622) $ (310,322) $ (247,332) $ (135,527) $ (119,867) $ (89,537) $ (69,647)
REVENUES
Drainage Fees 45,250 114,625 31,300 62,990 ill's955,rf6ri 30,330 29''90
TOTAL- PROJECTED REVENUES AND OTHER SOURCES $ 45,250 $ 114,625 S 31,300 $ 62,990 S 111,805 $ 15,660 $ 30331 $ 19,890 5
TOTAL REVENUE AVAILABLE $ (333,903) S (275,037) 5 (310,322) $ (247,332) $ (135,527) $ (119,867) $ (89,537) S (69,647) $ (69,647)
EXPENDITURES
12502-Camino Capistrano Off-Ramp Catch Basins 2,759
TOTAL EXPENDITURES $ 2,759 $ S $ $ $ $ $ $
ENDING FUND BAMMCE $ (336,W2) (275,0-171 $ f.
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FUND 13-AGRICULTURAL PRESERVATION FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ - $ - $ $ $ $ $ $ $
REVENUES
Current Year Project Funding 515,000
TOTAL- PROJECTED REVENUES AND OTHER SOURCES 5 $ $ 515,000 S $ S
TOTAL REVENUEAVAILABLE S $ $. 515,000 $ $_... .. $ $.
EXPENDITURES
xxxxx-Riding Park Fire Flow and Recycled Water Supply Project 515,000
TOTAL EXPENDITURES $
ENDING r :
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FUND 17-GAS TAX
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 741,862 $ 372 $ 133,584 $ 51,774 $ 57,429.00 $ 57,634.00 $ 57,459.00 $ 40,979.00 $ 51,279.00
REVENUES
Gas Tax 2103(New HUTA) 382,102 397,010 85,435 86,290 87,155 88,025 88,905 89,795 90,695
Gas Tax 2105 219,440 182,445 226,235 228,495 230,780 233,090 235,420 237,775 240,155
Gas Tax 2106 145,798 146,885 115,230 116,380 117,545 118,720 119,905 121,105 122,315
Gas Tax 2107 282,138 224,180 314,165 317,305 320,480 323,685 326,920 330,190 333,490
Gas Tax 2107.5 12,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Investment Interest 3,819 545 6,125 6,185 6,245 6,305 6,370 6,435 6,500
TOTAL- PROJECTED REVENUES AND OTHER SOURCES $ 1,045,297 $ 957,065 $ 753,190 $ 760,655 $ 768,205 $ 775,825 $ 7$3,520 $ 791,300 $ 799,155
TOTAL REVENUE AVAILABLE $ 3,787,159 5 957,437 5 886,774 $ 812,429 $ 825,634 $ 833,459 $ 940,979 $ 832,279 $ 850,434
EXPENDITURES
xx105-Local Streets Pavement Rehabilitation 74,727 278,000
xx109-Arterial Street Major Rehabilitation Program 3,600 350,000 366,000 411,000 468,000 476,000 500,000 481,000 499,000
07111-EI Camino Real at Don Juan Retaining Wall 219,053
11101-Citywide Sign Replacement Program 65,000
Transfer Out-General Fund(Street Maintenance) 450,000 300.000 469,000 344,000 300,000 300.000 300,000 300,000 300,000
TOTAL EXPENDITURES $ 812,380 $ 928,000 $ 83S= $ 755,000 $ 768,000 S 776,000 5 800,000 $ 781,000 $ 799,000
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FUND 18-CCFP
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 5,769,559 $ 4,341,019 $ 4,512,891 $ 4,983,546 $ 6,445,316 $ 1,269,896 $ 2,920,906 $ 3,276,686 $ 3,370,436
REVENUES
Circulation Fees 203,074 2,312,055 569,865 2,024,395 1,928,070 1,614,135 318,535 56,135 36,935
lnve5tment Interest 31,057 27.435 35,790 36,150 36,510 36,875 37,245 37,615 37.590
TOTAL• PROJECTED REVENUES AND OTHER SOURCES $ 236,131 $ 2,339,494 S 605,655 $ 2,06D,545 $ 1,964,580 S 1,651,010 S 355,780 S 93,750 $ 74,925
TOTALAVAILASLE $ 6,005,69() S 6,680,50$.;$ . 5+118.546 ,$ 7,044,091, $ 8,409,896 $ 2,920,906 S 3,276,686 $ 3,370,436 S 3,445.361
EXPENDITURES
07107-Del Obispo Circulation Improvements&Bridge Widening 12,217
07117-1-5/San Juan Creek Road Underpass Improvements 387 7,140,000
14103-Camino Las Ramblas and 1-5 Northbound Traffic Signal Modification 109
14104-Alipaz Street Widening,Camino Del Avion to Calle Rolando 2,163
15101-San Juan Creek Rd and Calle Cartegena Traffic Signal 715
16102-Del Obispo Street Widening Project 125,000 598,775
16104-Ortega/Del Obispo New Left Turn 10,000
Operating Expenditure-CCFP Fee Study 914
TOTAL EXPENDITURES $ 16,506 $ $ 136,000 S 598,775 S 7,140,040 S S $ $
EAfDJNG FUND 'e x• •i6 3,276696 $ 3,370,436 3,445�361
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FUND 31-AIR QUALITY MANAGEMENT DISTRICT(AQMD)/AB2766 FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ $ $ $ $ $ - $ - $ $
REVENUES
Current Year PrciectRinding 1,504 136,360 127,000 72,000
TOTAL- PROACTI D REVENUES AND OTHER SOURCES $ 1,504 $ 136,360 $ 127,000 $ 72,0[}0 $ $ $ $ 5
TOTAL REVENUE AVAILABLE $ 1,504 $ 136,360 S 127,0017 $ 72,000 S 5 5 $ S
EXPENDITURES
13103-Regional Traffic Signal Synchronization Program
(Del Obispo Street) 638 4,360
15102-Neighborhood Traffic Calming Projects 430 72,000 72,000 72,000
15103-Countdown Pedestrian Signals 436 60,000 55,000
TOTAL EXPENDITURES $ 1,504 $ 136,360 $ 137,000 $ 72,0@0 $ $ S S $
ENDING D:
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FUND 32-MEASURE M
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 386,949 $ 149,418 $ 50,915 $ 50,370 $ 485 $ 650 $ 1,455 $ 1,520 $ 1,705
REVENUES
Measure M Local Turnback $ 599,334 $ 677,140 $ 662,525 $ 697,115 $ 731,595 $ 767,665 $ 801,855 $ 836,905 $ 870,380
Investment Interest 1,562 6,860 6,930 7 nD0 7.070 7.140 7.210 7,280 7,355
TOTAL-PROJECTED REVENUES AND OTHERSOURCES $ 6001896 $ 684,000 $ 669,455 S 704,115 $ 738,665 S 774,805 $ 809,065 $ 844,185 $ 877,735
TOTAL AVAILABLE $ 987,845 S 833,41.8 5 720,370 $ 754,485 $ 739,150 $ 77SAS5 S 810,520 $ 845,705 S 879,440
EXPENDITURES
xx105-Local Streets Pavement Rehabilitation 131,953 300,000 670,000 546,000 613,500 774,000 809,000 844,000 877,000
xx109-Arterial Street Major Rehabilitation Program 58,000 403,000
07111-EI Camino Real at Don Juan Retaining Wall 126,057
08103-Cam Del Avion/Ave Descanso-Lighted Crosswalk
&Via Positiva Sidewalk 6,676
11101-Citywide Sign Replacement Program 322,680
13102-Bridge at Acjachema Street and La Calera Street 916
16101-Traffic Signal Cabinet Upgrades 90,000 208,000 125,000
TOTAL EXPENDITURES $ 646,282 $ 793,000 $ 670,000 $ 754,OW $ 738,500 $ 774,0()0 $ 809,000 $ 8"AM $ 877.000
50,370 $ 48.5 $ 650 i $ 1,70.5F
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FUND 37-HIGHWAYS,STREETS,AND ROADS GRANTS FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ (503,611) $ - $ - $ $ $ - $ • $ • $
REVENUES
Grants-State 627,229
Grants-Federal 4,585
Grants-Measure M Specific Projects 25,749 23,760 175,000 598,775
Investment Interest 3,211
TOTAL-PROJECTED RWENUESAND OTHER SOURCES $ 650,774 S 23,750 S IT5,000 S 598,775 S - S - 5 - $ - $
TOTAL REVENUE AVAILABLE $ 1371163 S 23,760 $ 175,000 $. 598,775 S 5 _ 5. . _ $ _ $,
EXPENDITURES
07107-Del Obispo Circulation Improvements&Bridge Widening 24,827
08103-Cam Del Avion/Ave Descanso-Lighted Crosswalk
&Via Positiva Sidewalk 107,616
13103-Regional Traffic Signal Synchronization Program(Del Obispo Street) 23,760
14107-Ortega Highway Widening from Calle Entradero to East City Limits 28,959
16102-Del Ob.=Street Widening Project ]?5.':!?0 598,775
TOTAL EXPENDITURES S 162.402 $ 23,760 S 175,000 3 598.775 5 5 • 5 $ $
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FUND 38 -OTHER GRANTS FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/2.2 2022/23
BEGINNING FUND BALANCE $ (42,196) $ $ $ $ $ $ $ $
REVENUES
Measure M Project Specific Grants 55,566
Other Reimbursements 7,081 1.580
TOTAL-PROJECTED REVENUES AND OTHER SOURCES $ 57,647 $ 1,5$0 $ - $ $ $ S $ $
TOTAL REVENUE AVAILAB LE $ 15,451 $ 1,580 _y•_ '.;. �_;; t_a_ $ $ $ _ _ _ $
EXPENDITURES
12503-Trash Capturing Screens 26,300
13103-Regional Traffic Signal Synchronization Program
(0 el Obispo Street) 18.194 1.590
TOTAL EXPENDITURES S 44,494 $ 1,580 $ S $ $. - $
ENDINGs BALANCE $ 129,043).
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FUND 51-OPEN SPACE
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 2,107,834 $ $ 428,778 $ 3,278 $ 5,778 $ 5,778 $ 5,778 $ 5,778 $ 5,778
REVENUES
Investment Interest 10,960 10,100 2,504 2,5wi0
TOTAL- PROACT€D REVENUES AND OTHER SOURCES 5 10,9660 5 10,100 $ 2,500 $ 1500 S - S - $ S $
TOTAL REVENUE AVAILABLE $ 2,118,794 $ 10,140 $ 431,278 $ 5,778 $ 5,779 $ 5,778 $ 5,778 $ 5,778 $ 5,778
EXPENDITURES
09209-Northwest open Space Community Park 3Ea,862 428,074
TOTAL EXPENDITURES. $ 394,862 5 - $ 428,000 $ - 5 $ $ $ $
ENDING FUND BALANCE $ 1,733,932 $ ,0
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FUND 52-COMMUNITY FACILITIES DISTRICT BONDS
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ - $ 131,000 $ - $ $ - $ $ $ $
REVENUES
Other Reimbursements-Pacifica San Juan CFD 98-1 850,000
Other Reimbursements-Whispering Hills CFD 2005.1 321,000
TOTAL• PROJECTED REVENUES AND OTHER SOURCES $ $ $ 1,171,000 $ $ S $ $ $
TOTAL REVENUE AVAILABLE 5 S 131,000 $ 1,171,0w S $ S $ $ S
EXPENDITURES
09209-Northwest Open Space Community Park 1,171,000
TOTAL EXPENDITURES $ $ $ 1,171,000 $ $ S $ $ $
ENDING . ; ,w
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FUND 53-SUCCESSOR AGENCY NON-HOUSING BONDS
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ $ 59,050 $ 8,314 $ 8,314 $ 8,314 $ 8,314 $ 8,314 $ 8,314 $ 8,314
REVENUES
Other Reimbursements $ 1,970,750
Investment Interest 11,011
TOTAL-PROJECTEO REVENUES AND OTHER SOURCES S 1,981,761 $ - $ S S $ $ $ S
TOTAL REVENUE AVAILABLE $ 1,981,761 $ 59,050 S 8,314 $ 8,314 S 8,314 $ 8,314 $ &„314 S 8,314 S 8,314
EXPENDITURES
14106-Verdugo Street Beautification Project $ 22,217 $ 25,000
15502-Historic Town Center Drainage Improvement Project
TOTAL EXPENDITURES $ 22,217 $ 25,000 $ $ $ $ S $
ENDING r
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FUND 63-WATER REPLACEMENT
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 1,442,277 $ 2,633 $ 648,450 $ 281,610 $ 44,900 $ 78,325 $ 496,885 $ 443,580 $ 357,410
REVENUES
Transfer In-Water Operations 325,000 1,500,000 750,000 750,000 1,000,000 1,000,000 3,200,000
Other Reimbursements 228,070
Investment Interest 8,860 2,110 13,160 13,290 13,425 13,560 13,695 13,830 13,970
TOTAL- PROJECTED REVENUES AND OTHER SOURCES $ 561,930 $ 1,502,110 $ 13,160 $ 13290 $ 763,425 S 763,560 $ 1,013,695 $ 1,013,830 $ 3,213,970
TOTAL REVENUE AVAILABLE $ 2,004,207 $ 1,504,743 S 661,610 $ 294,900 $ 808,325 S 841,885 $ 1,510,580 S 1,457,410 $ 3,571,380
EXPENDITURES
07811-760 South Reservoir Habitat Restoration 2,475 30,000
08801-Joint Regional Water Supply System Capital Replacements 17,260 20,000 20,000 620,000 145,000 187,000 100,000 100,000
08804-Pump Station Component Replacements 55,000 1,000,000
10803-San Juan Hills Waterline Replacements 301 164,000
11805-1-5 Utility Relocation 943,350
14702-Las Ramblas Sewer Activo Slope Replacement 87,500
16801-La Pata Pipeline Relocation 467,000
16802-Krum Reservoir 25,000
xxxxx-7605 Zone Pump Station Discharge Line Replacement 25,000 50,000 110,000 880,000
xxxxx-Water Facility Control Systems 180,000 180,000
xxxxx-Well Facility Equipment Replacement Program 100,000 100,000
xxxxx-System Repairs and Upgrade of Appurtenances 100,000 1,000,000
M xxxxx-San Juan Hills Greens Pipeline Replacement 2,300,0100
= TOTAL EXPENDITURES $ 963,386 $ 773,500 $ 380,000 $ 250,000 $ 730,000 S 345,000 $ 1,057,000 $ 1,100,DD0 S 3,400,000
W ENDING FUND BALANCE $ 1,M.921a •rr
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FUND 64-WATER CAPITAL IMPROVEMENT
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 286,835 $ 634,647 $ 2,198,014 $ 1,989,039 $ 2,495,894 $ 3,775,389 $ 6,547,224 $ 6,613,154 $ 6,727,934
REVENUES
Water Capital Improvement Charge 569,684 663,210 260,815 314,085 450,775 818,125 44,745 31,245 12,245
Water Capacity Charge 900,757 862,085 338,970 408,695 585,835 1,063,115 58,445 40,775 15,905
Water Storage Fees 681,807 809,195 317,240 396,075 547,885 990,595 62,740 42,760 14,640
Grants-State 246,432
Investment Interest 2,948
TOTAL• PROJECTED REVENUES AND OTHER SOURCES $ 2,401,628 $ 2,334,490 S 917,025 $ 1,118,855 $ 1,584,495 S 2,871,835 $ 165,930 $ 114,780 $ 42,790
TOTAL REVENUE AVAILABLE $ 2,688,463 S 2.969,137 $ 3,115;039 $ 3,107,894 5 4,080,389 S 6,647,224 $ 6,713,154 $ 6,727,934 $ 6,770,724
EXPENDITURES
07811-7605 Reservoir 2,891
11805-1-5 Utility Relocation 150,000
15801-Upper Chiquita Reservoir Recirculation Pump
and Upgrade Project 13,607
16801-La Pata Pipeline Relocation 472,000 472,000 205,000
16803-Groundwater Recharge 1,500,000
xxxxx-San Juan Hills Greens Cathodic Protection System 184,000
xxxxx-Valve Insertion Program 100,000 100,000 100,000 100,000 100,000
xxxxx-Capistrano Royale Fire Flow Pump 180,000
xxxxx-Palletization and Space Consolidation 40,000 40,0+00
TOTAL EXPENDITURES $ 16,498 $ 1,5=000 $ 1,126,000 $ 612,000 $ 305,000 $ 100,wo $ 100,000 S S
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FUND 65-NON-POTABLE WATER CAPITAL IMPROVEMENT
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ (1,620,963) $ (885,101) $ (374,362) $ (36,742) $ 380,868 $ 1,114,188 $ 1,797,173 $ 162,668 $ 637,668
REVENUES
Water Capacity Charge 322,576 41,595 172,620 365,610 258,320 207,985 196,495
Transfer In-Recycled Water Opera ions 600,000 820,000 641,0 0 647,000 600,071"? 600.000 600,000 600,000 600,0:10
TOTAL- PROJECTED REVENUES AND OTHER SOURCES $ 922,576 $ 861,595 $ 813,620 $ 1,012,610 $ 858,320 5 807,985 S 796,495 5 600,000 5 600,040
TOTAL REVENUE AVAILABLE $ (698,387) $ {23,506) $, 439,258 $ 975,868 $ 1,239,188 S 1,922,173 § 2,593,668 $ 762,668 $ 1,237,668
EXPENDITURES
16601-Recycled Water Service Conversions 250,000 150,000 150,000 24,000 24,000 24,000 24,000 24,000
xxxxx-Water Facility Control Systems 20,000 20,000
xxxxx-Well Facility Equipment Replacement Program 40,000
xxxxx-Trampas Canyon Recycled Water Reservoir 101,000 101,000 101,000 101,000 101,000 101,000 101,000
xxxxx-Recycled Expansion-Grants Application 165,000
xxxxx-Calle Arroyo Recycled Pipeline 324,000 4306,000
TOTAL EXPENDITURES $ - S 250;000 S 476,000 S 595,000 5 125,000 S 125,0041 $ 2„431,000 S 125,000 $ 125,000
ENDI NG FU N D r. 380,968
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FUND 71-SEWER REPLACEMENT
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014115 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 3,290,774 $ 331,442 $ 351,281 $ 249,671 $ 123,296 $ 47,156 $ 116,256 $ 235,596 $ 710,181
REVENUES
Transfer In-Sewer Operations 500,000 500,000 500,000 500,000 500,000 2,000,000 1,000,000 1,000,000 1,000,000
Investment Interest 18,806 23,720 23,390 23,625 23,860 24,100 24,340 24,585 24,830
TOTAL• PRO)ECTED REVENUES AND OTHER SOURCES $ 518,806 S 523.220 5 523,390 S 523,623 5 523,$60 $ 2,024,1G0 S 1,024,340 $ 1,024,585 $ 1,024,834
TOTAL REVENUE AVAILABLE $ 3,809,580 S SS4,662 S 874,671 $ 773,295 $ 641,156 $ 2,071,156 $ 1,140,596 5 1,260,181 $ 1,735,011
EXPENDITURES
xx701-Annual Sewer Replacement Program 58,926 450,000 450,000 450,000 500,000 500,000 550,000 550,000 600,000
07701-South Orange County Wastewater Authority PC#2 Rehabilitation 341,773 35,000 355,000
07703-New Hydraulic Capital Project#6 100,000 200,000 1,400,000
11805-1-5 Utility Relocation 1,324
14702-Las Ramblas Sewer Activo Slope Replacement 262,500
15703-South Orange County Wastewater Authority PC#5
Ocean Outfall Rehabilitatlon 75,000 100,000 20,000
TOTAL EXPENDITURES S 402_,023 $ 714500 $ 625,000 S 650,000 S 600,000 $ 1,955,000 $ 90S,000 $ 550,000 S 600,000
s1,1n012
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FUND 72-SEWER CAPITAL IMPROVEMENT
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ 6,758,001 $ 1,631,700 $ 743,517 $ 361,812 $ 705,997 5 174,597 $ 792,817 $ 1,292,687 $ 969,572
REVENUES
Sewer Connection Fees 376,013 1,716,470 969,765 1,465,300 1,154,360 1,609,070 256,130 134,730 22,210
Loan Repayment from Successor Agency 240,000
Loan Repayment from Water Operations Fund 715,000 733,180 740,230 754,455
Transfer In-Sewer Replacement 500,000 500,000 500,000 550,000
Investment Interest 41,902 22,390 35,350 35,705 36,060 36,420 36,785 37,155 37,525
Loan Interest 42,980 33,180 33,180 15,000 7,500 7,500
Current Year Funding from Reserves 60,000
TOTAL• PROJECTED REVENUES AND OTHER SOURCES $ 460,89S $ 1.738,860 S 1,338,295 S 2,.249,185 $ 1,938,600 $ 2,893,220 S 1,554,870 S 671,885 S 509,735
TOTAL REVENUE AVAiLABtE $ 7,218,896 S 3.370,560 $ 2,081,812 $ 2,610,997 $ 2,640,597 $ 3,067,817 $ 2,347.687 $ 1,964,572 $ 1,579,307
EXPENDITURES
07701-South Orange County Wastewater Authority PC#2 Rehabilitation 739,829 1,460,000 1,755,000 2,470,000 2,275,000 1,055,000 995,000 1,570,000
07703-New Hydraulic Capital Project#6 1,277,087
08701-Grease Food Interceptor Program 15,000
15702-Hydraulic Capacity Project#5 250,000
15703-South Orange County Wastewater Authority PC#5 150,000
Ocean Outfall Rehabilitation 63,710
xxxxx-Sewer Flow Metering&SCADA Monitoring Project 200,000
Write-off 20%of Successor Agency Loan Repayment 60,000
TOTAL EXPENDITURES $ 754,8.29 $ 1.390,797 $ 1,720,000 $ 1,905,000 $ 2,470,000 5 2,275,000 $ 1,055,000_$ "S,000 S 1,570,000
r. S 6,46ikO67
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FUND 81 - FACILITIES OPERATIONS FUND
FY 2016/2018
ACTUAL ADOPTED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED
Description 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23
BEGINNING FUND BALANCE $ - $ - $ $ $ - $ $ - $ $
REVENUES
Current Year Project Funding 36,332 101,1100 152,000 W.000 152,000 152,000 152,000 152,040
TOTAL. PROJECTED REVENUES AND OTHER SOURCES S 16,332 $ 101,000 $ MAN $ 152,000 S 317,006 S 1S2,400 $ 152,000 $ 152,000 $ 152,040
TOTAL REVENUE AVAILABLE $ 16,332 $ 101.000 $ 152,400 5 152,000 S 317,004 $ 132,000 $ 152,400 $ 152,000 $ 152.000
EXPENDITURES
13301-Friends of the Library Bookstore Relocation
15302-Library Exterior Repairs and Painting 3,960
15303-La Sala Parking Lot Resurfacing Project
15304-Camino Capistrano Athletic Arena Court Resurfacing Project
15305-City Hall Complex Exterior Siding and Roof Repairs
Replacement Project
15306-ADA Self Evaluation and Transition Plan Implementation 12,372 26,000 152,000 152,000 152,000 152,000 152,000 152,000 152,000
16301-Trabuco Creek Footbridge Renovation 75,000
xxxxx-Historic Town Center Park Storage Facility 165,000
TOTAL EXPENOJTUIRES S 16,332 $ 101,000 $ 152,000 $ 152,000 317,000 S 152,000 $ 152.000 $ 152,D00 $ 152,400
ENDING FUND BALANCE
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RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, ADOPTING ITS ARTICLE X11113
APPROPRIATIONS LIMITATION (GANN LIMITATION) FOR FISCAL
YEAR 2016-17
WHEREAS, the voters of California on November 6, 1979, added Article
X11113 to the State Constitution placing various limitations on the appropriations of the
State and local governments; and,
WHEREAS, Article X11113 provides that the appropriations limitation for the
Fiscal Year 2016-17 is calculated by adjusting the base year appropriations of Fiscal
Year 1978-79, if desired, with changes in California per capita personal income or non-
residential assessed valuation and changes in City or County populations, and the
recalculations of appropriations limitation from the 1986-87 fiscal year stipulated by
Proposition 111; and,
WHEREAS, the information regarding the change in non-residential
assessed valuation from the County of Orange is not available until after the
establishment of the Fiscal Year 2016-17 appropriations limitation and the City reserves
the right to adjust its Fiscal Year 2016-17 limitation as information regarding the change
in non-residential assessed valuation due to new construction is made available by the
County of Orange; and,
WHEREAS, the information necessary for making these adjustments is
attached as Exhibit A; and,
WHEREAS, the City of San Juan Capistrano has complied with all the
provisions of Article X11113 and amendments thereto per Proposition 111 in determining
the appropriations limitation for Fiscal Year 2016-17.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of
San Juan Capistrano does hereby:
1. Set the appropriations limitation for Fiscal Year 2016-17 at $73,852,640
as shown in attached Exhibit A.
2. Determine that the amount of the appropriations of the City of San Juan
Capistrano for Fiscal Year 2016-17 that are subject to the limitation are $21,054,083;
and,
3. Declare that the appropriations of the City of San Juan Capistrano for
Fiscal Year 2016-17 that are subject to the limitation do not exceed the limitation.
1
ATTACHMENT 3
PASSED, APPROVED, AND ADOPTED this 21st day of June 2016.
PAM PATTERSON, ESQ., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
2
ATTACHMENT 3
EXHIBIT A
2016-17 APPROPRIATION LIMITATION CALCULATION
2016-17 APPROPRIATIONS LIMITATION:
2015-16 Limitation $69,401,790
x Annual adjustment factors:
Population increase (for County) 0.99% 1.0099
Inflation charges (California personal income) 5.37% x 1.0537
Combining adjustment factors 1.0641
2016-17 Limitation $73,852,640
APPROPRIATIONS SUBJECT TO LIMITATION AND APPROPRIATIONS MARGIN:
Budget appropriation 2016-17 $34,340,598
Less exclusions:
Non-proceeds of taxes (10,581,742)
Qualified debt services (2,703,755)
Qualified capital outlay (1,551,000)
Total exclusions (14,836,497)
Add change in fund balance 1,549,982
Total appropriations subject to limitation $21,054,083
Appropriations margin $52,798,557
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA
ESTABLISHING THE PROPERTY TAX RATE FOR
VOTER-APPROVED BONDED INDEBTEDNESS (OPEN
SPACE MEASURE D-1990) FOR FISCAL YEAR 2016-
2017
WHEREAS, the voters of the City of San Juan Capistrano approved bonded
indebtedness and authorized the City Council of the City of San Juan Capistrano to
establish the rate of property tax required to generate an amount of revenue from the
tax base to provide sufficient moneys to pay debt service on the voter-approved bonded
indebtedness payable during the fiscal year ending June 30, 2017; and,
WHEREAS, the total net taxable secured assessed valuation of the City of San
Juan Capistrano is estimated at $6,859,504,132; and,
WHEREAS, the total amount of revenue necessary to provide sufficient funds to
pay debt service for the fiscal year ending June 30, 2017, is estimated at $415,000.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Juan Capistrano does hereby:
SECTION 1:
Set the property tax rate within the City for the City of San Juan Capistrano
General Obligation Bond, Election of 1990 (Open Space Measure D - 1990) for the
fiscal year ending June 30, 2017, at $0.00605 per $100 assessed value.
SECTION 2:
Authorize and direct the City Manager and the City Treasurer to take any and all
actions necessary to ensure that the Auditor-Controller of the County of Orange,
California makes this levy and causes to be collected the amounts requested in Section
1 hereof at the time and in the manner of levying other County taxes. These amounts
shall be reported separately as remittances are made to the City.
SECTION 3:
The City Clerk is hereby directed to furnish the Office of the Auditor-Controller,
County of Orange, Attn: Frank Davies, Property Tax Section, P.O. Box 567, Santa Ana,
CA 92702-0567.
1
ATTACHMENT 4
PASSED, APPROVED AND ADOPTED this 21st day of June 2016.
PAM PATTERSON, ESQ., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
2
ATTACHMENT 4
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO, CALIFORNIA
ESTABLISHING THE PROPERTY TAX RATE FOR
VOTER-APPROVED BONDED INDEBTEDNESS (OPEN
SPACE MEASURE Y-2008) FOR FISCAL YEAR 2016-2017
WHEREAS, the voters of the City of San Juan Capistrano approved bonded
indebtedness and authorized the City Council of the City of San Juan Capistrano to
establish the rate of property tax required to generate an amount of revenue from the
tax base to provide sufficient moneys to pay debt service on the voter-approved bonded
indebtedness payable during the fiscal year ending June 30, 2017; and,
WHEREAS, the total net taxable secured assessed valuation of the City of San
Juan Capistrano is estimated at $6,859,504,132; and,
WHEREAS, the total amount of revenue necessary to provide sufficient funds to
pay debt service for the fiscal year ending June 30, 2017, is estimated at $2,036,400.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Juan Capistrano does hereby:
SECTION 1:
Set the property tax rate within the City for the City of San Juan Capistrano
General Obligation Bond, Election of 2008 (Open Space Measure Y - 2008) for the
fiscal year ending June 30, 2017, at $0.02969 per$100 assessed value.
SECTION 2:
Authorize and direct the City Manager and the City Treasurer to take any and all
actions necessary to ensure that the Auditor-Controller of the County of Orange,
California makes this levy and causes to be collected the amounts requested in Section
1 hereof at the time and in the manner of levying other County taxes. These amounts
shall be reported separately as remittances are made to the City.
SECTION 3:
The City Clerk is hereby directed to furnish the Office of the Auditor-Controller,
County of Orange, Attn: Frank Davies, Property Tax Section, P.O. Box 567, Santa Ana,
CA 92702-0567.
1
ATTACHMENT 5
PASSED, APPROVED AND ADOPTED this 21st day of June 2016.
PAM PATTERSON, ESQ., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
2
ATTACHMENT 5
SECOND AMENDMENT TO
PERSONAL SERVICES AGREEMENT
THIS FIRST AMENDMENT TO THE PERSONAL SERVICES AGREEMENT
between the CITY OF SAN JUAN CAPISTRANO ("City") and the BOYS AND GIRLS
CLUBS OF CAPISTRANO VALLEY, is made and entered into, to be effective the 21S` day of
June, 2016, as follows:
RECITALS
WHEREAS, the City and the Boys and Girls Clubs of Capistrano Valley have entered
into a Personal Services Agreement dated August 7, 2012, to provide an Afterschool Recreation
Program for youth at the Boys and Girls Clubs of Capistrano Valley until June 30, 2014.
WHEREAS, the City and the Boys and Girls Club of Capistrano Valley amended that
agreement, effective November 5, 2013, so as to include certain hourly rates and to extend the
term of that agreement through June 30,2016.
WHEREAS, the City and the Boys and Girls Clubs of Capistrano Valley desire to amend
the terms of the Personal Services Agreement, as amended, as provided hereunder.
AMENDMENT
NOW, THEREFORE, in consideration of the promises and mutual covenants contained therein,
City and Contractor agree to amend the Agreement as follows:
Section 16. Term of Agreement is amended to extend the agreement for two additional
ten (10) month periods beginning September 1, 2016, through June 30, 2017, and September 5,
2017,through June 30, 2018.
All other provisions of the Agreement (including the amendments contained in the
November 5, 2013, amendment) not specifically amended hereunder shall remain in full force
and effect.
[signatures on following page]
Page 1 of 2
ATTACHMENT 6
SIGNATURE PAGE
TO
SECOND AMENDMENT TO
PERSONAL SERVICES AGREEMENT
CITY OF SAN JUAN CAPISTRANO BOYS AND GIRLS CLUB OF
CAPISTRANO VALLEY
By:
Benjamin Siegel By:
City Manager Name:
Title:
ATTEST:
By: By:
Maria Morris Name:
City Clerk Title:
APPROVED AS TO FORM:
By: - ---- - -- -.
Jeffrey S. Ballinger
City Attorney
Page 2 of 2
ATTACHMENT 6
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, AMENDING RESOLUTION NO. 14-06-23-
06, THE CITY'S CLASSIFICATION AND COMPENSATION PLAN
WHEREAS, the City Council of the City of San Juan Capistrano is authorized
and directed under the City's Personnel Rules and Regulations to adopt and amend a
Personnel Classification and Compensation Plan in order to administer the City's
Personnel Management System; and,
WHEREAS, the City desires to amend the Personnel Classification and
Compensation Plans in order to implement a 3% salary increase for designated part-
time employees effective July 1, 2016, as outlined in Exhibit A; and
WHEREAS, the City's Personnel Rules and Regulations provide that adoption or
amendment of the City's Personnel Classification and Compensation Plans shall be
made by resolution of the City Council.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby amend Resolution No. 14-06-23-06, the City's Personnel
and Classification and Compensation Plan for part-time staff, as set forth in Exhibit A.
PASSED, APPROVED, AND ADOPTED this 21St day of June 2016.
PAM PATTERSON, ESQ., MAYOR
ATTEST:
MARIA MORRIS, CITY CLERK
ATTACHMENT 7
CITY OF SAN JUAN CAPISTRANO Effective July 1, 2016
Compensation Plan
Part Time Employees
Monthly Salary Schedule
Class Title Grade Step 1 Step 2 Step 3 Step 4 Step 5
Recreation Leader 15 2,224 2,335 2,451 2,573 2,703
Park/Facility Monitor 15 2,224 2,335 2,451 2,573 2,703
Administrative Intern 16 2,279 2,394 2,513 2,639 2,771
Engineering Intern 16 2,279 2,394 2,513 2,639 2,771
Planning Intern 16 2,279 2,394 2,513 2,639 2,771
Senior Recreation Leader 25 2,847 2,989 3,139 3,296 3,461
Cashier 33 3,679 3,864 4,057 4,260 4,472
Volunteer Coordinator 47 4,902 5,146 5,403 5,674 5,958
Project Manager 78 11,660 12,243 12,856 13,498 14,173
*Part-time hourly positions are paid in hourly equivalent of monthly salary.
EXHIBIT A
DRAFT
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO TO SET FORTH RESERVE
TARGETS WITH RESPECT TO THE GENERAL FUND OF
THE CITY
WHEREAS, it has been the practice of the City of San Juan Capistrano to
consider during its budget adoption process the amount that should be appropriated to
be set aside in a contingency reserve, and,
WHEREAS, the City has prudently accumulated over a number of years a
contingency reserve balance at approximately 50% of the annual budget of the General
Fund of the City, and,
WHEREAS, from time to time, appropriations of reserve balances are needed to
funds special needs or circumstances facing the City, and,
WHEREAS, it is considered best practice to identify specific reserves for specific
purposes so that the reserve needs of a city are more clearly defined and the full
impacts of using accumulated reserves for the payment of expenditures are clearly
understood, and,
WHEREAS, reserve targets represent long-term financial goals that are fully
expected to be realized over a number of years, and,
WHEREAS, such targets and the proper balance to be held in such reserves
should be re-examined at each budget cycle because every city has limited resources
and reserve management is one of many public policy priorities that must be managed
in the context of these limited resources.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby resolve as follows.
SECTION 1. - Purpose of Reserves for Specific Purposes: Reserves require
an assessment of the financial risks that face different cities in varying degrees. Specific
reserves also result in more thoughtful decisions when amounts previously established
for reserves later become appropriated to support expenditures. Specific reserves
require recognition that there is a cost to funding new or increased expenditures from
existing reserves. Detailed reserves require a careful weighting of these considerations
when reserves are established as well as when they are later accessed to pay for
expenditures.
Section 2 - Competing Priorities for Limited Resources — Cities operate in an
environment of competing priorities for the use of limited resources. Reserves are not
established in isolation of the consideration of other valid uses to which the limited
ATTACHMENT 8 - Page 1 of 5
resources of a city can be used. As a result, the amounts that are desired for specific
reserves must take into account other purposes for which City resources can be
engaged.
Section 3 — Reserve Targets — The targets identified in this policy represent
long-term goals that have been established to guide City Council in the establishment
and allocation of reserve balances. These determinations are a part of the City's
biennial budget process. Reserve targets do not represent minimum requirements.
Because reserve targets are intended to be met over a long-term, a reserve balance
that is less than the amount targeted does not represent a deficiency or violation of this
policy. The reserve targets established pursuant to this policy supersede any previously
established guidelines for General Fund contingency reserves.
Section 4 - Annual Assignment and Reallocation — The amounts established
for targets and the amounts actually established for each reserve are an integral part of
the resource allocation process that is addressed in the establishment of a budget. As a
part of the City's biennial budget process and at any time during the two-year budget
policy, the targets previously established for General Fund reserves may be re-
evaluated and changed to reflect changes in conditions or the judgment of City Council.
For example, amounts previously allocated to specific reserves may be reallocated to
other reserves.
The attached schedule sets forth the reserve targets and funding assignments for Fiscal
Year 2016-17 and 2017-18, as currently approved by City Council. An amendment of
this resolution is not required for City Council to reallocate reserve balances or to
appropriate reserve balances for the payment of operating expenses. Such changes
may be made at any time by a majority vote of the City Council.
Section 5 — Reserve Guidelines — In consideration of the foregoing, the
following reserves are identified for consideration by City Council:
Cash Flow Reserve — Because property taxes are a significant revenue source
for the general funds of cities and since 50% of a city's property taxes are not
received until six months after the beginning of the fiscal year, cities generally
need a Cash Flow Reserve to provide for payment of monthly operating
expenses until the first installment of property taxes has been received. Based on
historical trends, the Finance Department has determined this amount to be $5
million. The amounts held in the Cash Flow Reserve are unavailable for other
purposes and should be fully funded as of the beginning of every fiscal year to
prevent the cash of the General Fund of the City from reaching a negative
position. Negative cash positions represent a de facto borrowing from other funds
of the City which may be subject to their own seasonal fluctuation issues as well
as the need to retain funds for project requirements. Funding the Cash Flow
Reserve at less than $5 million would require an annual assessment of the
availability of cash in other funds to finance the temporary borrowing of the
ATTACHMENT 8 - Page 2 of 5
General Fund for the six month period of each fiscal year during which cash
outflows exceed cash inflows.
Economic Uncertainty— In recognition that the economy is cyclical with periods
of economic expansion followed by periods of economic decline and that these
fluctuations in economic conditions have an effect on the revenues of a City, it is
considered best practice for cities to have an economic uncertainty reserve.
During the recessionary period of 2008 through 2011, revenues of the City of
San Juan Capistrano declined on average of 9% per year over a five year period.
This amounted to a loss of revenues of $10 million over that five year period. An
economic uncertainty reserve allows cities to continue to provide essential
services during recessionary periods. Considerable discretion must be exercised
in determining the proper target for the City and the amount that is annually
committed toward reaching that target. Because of competing demands for City
resources, a full funding of this reserve to minimize the risk associated with
cyclical economic variation is not always possible. In view of this and in
recognition that the next economic downturn may not be as deep or last as long
as the most recent recession, the City may from time to time adjust this reserve
target to reflect the limited resources of the City and the other demands for these
resources against which the funding of this reserve must be balanced.
Pension Contributions — A city's annual pension contribution requirement is
one of the most significant expenses that a city faces. One of the financial risks
to which cities are exposed is the risk that annual increases in the amount of
required pension contributions will exceed the rate of revenue growth required to
fund increasing pension costs. As a result, some cities have established a
pension reserve to accumulate funds that can be accessed in later budget
periods to offset higher annual pension costs in those future periods. In addition,
some cities have chosen to accumulate money in their pension reserve to be
applied toward a reduction of its pension obligation. Before any funds
accumulated for a supplemental contribution to the pension trust are remitted to
the trust, the City should carefully evaluate its long-term cash needs since such
supplemental contributions are irrevocable.
Other Contingencies — In addition to its reserve for economic uncertainty, the
City has established a general contingencies reserve to reflect the fact that the
City is also exposed to the risk that other uncertain and unexpected requirements
for funds can occur. These unexpected future costs can take the form of new
litigation, natural disaster, unexpected project requirements, new critical
initiatives of City Council, etc. The use of a reserve of this nature reflects the
reality that no budget can anticipate all of the circumstances that can trigger the
immediate need for additional funds.
Capital Replacement — The City has a number of funds that hold resources that
are restricted for capital replacement. These include funds holding development
fee revenue, intergovernmental revenue, and bond proceeds. In addition, the City
ATTACHMENT 8 - Page 3 of 5
has accumulated capital replacement reserves in its Facilities Operations Fund.
In the past, funding to the Facilities Operations Fund has typically been made
based on the original cost of city-owned buildings, vehicles, and equipment. In
recognition that the amount required to replace existing assets often exceeds the
costs originally incurred to obtain those assets, the City may elect during its
budget development process to set aside additional reserves in the General
Fund to cover the additional cost of asset replacement. Amounts contributed to
this reserve may also reflect an accumulation of funds for new or additional
capital assets expected to be needed in the future that are not currently
addressed by existing funding policies. Finally, a capital replacement reserve in
the General Fund serves an important role in replacing a diminishing funding
source for existing capital projects: development-related revenues that are
derived from private development activity in the community that are expected to
decline as the City approaches build out.
PASSED, APPROVED, AND ADOPTED this 21St day of June 2016.
PAM PATTERSON, ESQ., CHAIR
ATTEST:
MARIA MORRIS, SECRETARY
ATTACHMENT 8 - Page 4 of 5
Schedule of Reserve Funding
For Fiscal Years 2016-17 and 2017-18
Long-term Reserve Reserve Reserve
Reserve Balance As of Balance As of Balance As of
Reserve Target June 30, 2016 June 30,2017 June 30,2018
Cash Flow 20% of budget) $5,000,000 5,000.000 5,000,000 5,000,000
Economic Uncertainty(40%) 10,000,000 7,500,000 7,500,000 7,500,000
Other Contingencies(10%) 2,500,000 1,000,000 1,000,000 1,000,000
Pension Contributions 10% 2,500,000
Capital Replacement 10%) 2,500,000
Total $22,500,000 13,500,000 13,500,000 13,500,000
ATTACHMENT 8 - Page 5 of 5
EXHIBIT A TO ATTACHMENT 8 —
Prior Resolution Containing Reserve Guidelines
RESOLUTION NO. 11-06-30-04
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN
CAPISTRANO, CALIFORNIA, ADOPTING THE CITY'S FUND BALANCE
POLICY
WHEREAS, the Governmental Accounting Standards Board (GASB) has issued
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions
(GASB 54) with the intent of improving financial reporting by providing fund balance
classifications that will be more easily understood; and,
WHEREAS, GASB 54 defines the various fund balance components of
governmental fund-types for financial reporting purposes; and
WHEREAS,the classification and reporting of fund balance components as required
by GASB 54 will be effective starting with the fiscal year 2010-2011 reporting and therefor
need to be adopted by June 30, 2011; and
WHEREAS, the Chief Financial Officer is delegated the authority to assign fund
balance for specific purposes for inclusion in the annual financial reports
WHEREAS, City Council has established guidelines for contingency reserves that
should be reflected by the authority of City policy
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby approve and adopt the Fund Balance Policy (EXHIBIT"A").
PASSED, APPROVED, AND ADOPTED this 30th day of June, 2011
SAl
ALLEVATO, MAYOR
o
;1� T
i
ATTE T:
F
MAR R IS, CI C RK
1 6/30/2011
EXHIBIT A- Page 1 of 8
STATE OF CALIFORNIA }
COUNTY OF ORANGE
CITY OF SAN JUAN CAPISTRANO }
I, MARIA MORRIS, appointed City Clerk of the City of San Juan Capistrano, do hereby
certify that the foregoing Resolution No. 11-06-30-04 was duly adopted by the City
Council of the City of San Juan Capistrano at a Adjourned Regular meeting thereof, held
the 3011 day of June 2011, by the following vote:
AYES: COUNCIL MEMBERS: Freese, Reeve, Taylor, Kramer and Mayor Allevato
NOES: 9OUNCIL MEMBER: None
ABSEIL OUNCIL MEMBER: None
MA"iMORT9, City Crk.
2 6/30/2011
EXHIBIT A- Page 2 of 8
CITY OF SAN JUAN CAPISTRANO
FUND BALANCE POLICY
FIRST ADOPTED:
I. PURPOSE
The purpose of this policy is to establish parameters, provide guidance, and
set forth authoritative governance for the classification of fund balance as
reported by the City of San Juan Capistrano and the Community
Redevelopment Agency. In February 2009, the Governmental Accounting
Standards Board (GASB) issued Statement No. 54, Fund Balance Reporting
and Governmental Fund Type Definitions (GASB 54). GASB 54 changes the
reporting presentation of fund balance components for governmental. fund-
types. While there is no prescribed change to the total amount of a given fund
balance, the categorization and terminology used to describe fund balance
components are substantially altered. The new approach focuses on the
extent to which the City is bound to honor constraints on the specific
purposes for which amounts in the fund can be spent, not on financial
resources available for appropriation within a fund; see ATTACHMENT A.
In addition to the GASB 54 compliance of governmental fund-types, this
policy also defines the components of budget reserves for the enterprise
funds; see ATTACHMENT B.
II. POLICY STATEMENT
This policy shall define the components of fund balance, authorize the Chief
Financial Officer to prepare financial reports which accurately categorize fund
balance in compliance with GASB 54, and establish contingency limits.
The term fund balance is used to describe the difference between assets
(what is owned) and liabilities (what is owed) reported within a fund. Prior to
GASB 54; fund balances were classified into three separate components:
Reserved, Designated and Undesignated. Frequently, important limitations
are placed on the purpose for which all or a portion of a fund's resources can
be used. The authoritative level of these limitations can vary significantly,
depending on their source. The five components of fund balance under the
GASB 54 reporting standard are designed to indicate the extent to which the
City is bound by limitations which may be placed upon resources.
This policy shall also define the budget reserve components of the City's
enterprise funds.
P c1
EXHIBIT Al P�ge 3 of 8
EXHIBIT "A"
CITY OF SAN JUAN CAPISTRANO
FUND BALANCE POLICY
FIRST ADOPTED:
ill. FUND BALANCE GOVERNING POLICIES
The City shall report governmental fund-type fund balances in compliance
with GASB 54 and shall categorize budget reserves in the enterprise funds
according to the following five components:
Non-spendable Fund Balance: The portion of fund balance that includes
amounts that cannot be spent because they are either (a) not in a spendable
form, such as prepaid items, inventories of supplies, non-current assets, or in
certain instances, loans receivable; or (b) legally or contractually required to
be maintained intact, such as the principal portion of an endowment. This
category was reported as a "reserved"fund balance prior to GASB 54.
Restricted Fund Balance: The portion of fund balance that reflects constraints
placed on the use of resources (other than Non-spendable items) that are
either (a) externally imposed by creditors (such as through debt covenants),
grantors, contributors, or laws or regulations of other governments; or (b)
imposed by law through constitutional provisions or enabling legislation. This
category was reported as a "reserved"fund balance prior to GASB 54.
UNRESTRICTED:
Committed Fund Balance: The portion of fund balance that includes amounts
which can only be used for specific purposes pursuant to constraints imposed
by formal action of the highest level of decision making authority, City
Council. Such constraints shall remain binding unless removed in the same
manner. For example, City Council may enact an ordinance or adopt a
resolution which identifies spending certain amounts of fund balance for
specific purposes. Committed amounts cannot be used for any other purpose
unless the City Council removes or changes the specified use through the
same type of formal action taken to establish the commitment. Action taken to
commit fund balance shall occur within the fiscal reporting period; however,
the amount may be subsequently determined. This category was reported as
"designated" fund balance prior to GASB 54.
Assigned Fund Balance. The portion of fund balance that includes amounts
constrained by the City's intent to be used for specific purposes, but cannot
be categorized as either restricted or committed. Such intent shall be
established by non-formal action of City Council, the highest level of decision
making, or by an official designated for that purpose. This policy hereby
delegates the authority to assign amounts to be used for specific purposes to
12
EXHIBIT A- Page 4 of 8
CITY OF SAN JUAN CAPISTRANO
FUND BALANCE POLICY
FIRST ADOPTED:
the Chief Financial Officer for the purpose of reporting these amounts in the
annual financial. statements. An example of assigned fund balance is an
amount of existing fund balance that is planned to be used to eliminate a
projected deficit in the subsequent year's budget. Assigned fund balance shall
not exceed total fund balance less the sum of the non-spendable, restricted,
and committed fund balance components. This category was reported as
"designated"fund balance prior to GASB 54.
Unassigned Fund Balance: The portion of fund balance that includes amounts
that do not fall into one of the above four categories. The general fund shall
include this classification for residual positive net resources in excess of
amounts properly classified as one of the other four components. In funds
other than the general fund, this classification shall be used only to report a
deficit balance resulting from residual net resources which are less than total
fund balance less the sum of the non-spendable, restricted, and committed,
and assigned fund balance components. This category was reported as
"undesignated"fund balance prior to GASB 54.
IV. FUND BALANCE CLASSIFICATION AND RESERVES
The accounting policies of the City consider restricted fund balance to have
been spent first when an expenditure is incurred for purposes for which both
restricted and unrestricted fund balance is available. Similarly, when an
expenditure is incurred for purposes for which amounts in any of the
unrestricted classifications of fund balance could be used, the City considers
committed amounts to be reduced first, followed by assigned amounts and
then unassigned amounts.
In order to maintain a stable revenue structure and provide reliable services
to the community, the City reserves fund balance for contingencies. City
Council guidelines for contingency reserves are:
Governmental fund-types including the General Fund - target of 50% of
current operating expenditures, excluding capital improvement projects
transfers, with a minimum reserve of 25%
Water and Sewer Enterprise Funds, approximately 25% to 100% of
current operating expenditures
EXHOIT'R- JPlige 5 of 8
CITY OF SAN JUAN CAPISTRANO
FUND BALANCE POLICY
FIRST ADOPTED:
Water and sewer Replacement Funds, approximately one year's average
capital costs.
This policy is in place to provide a measure of protection for the City against
unforeseen circumstances and to comply with GASB 54. No other policy or
procedure supersedes the authority and provisions of this policy.
EXHIBIT A`- P ge 6 of 8
ATTACHMENT A
VARIOUS COMPONENTS OF FUND BALANCE IN THE GENERAL FUND AS
DEFINED BY GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT
NO. 54
Non-spendable Fund Balance
Long term receivables: The portion of fund balance that represents the asset amount of
notes receivable held by a given fund.
Prepaid expenditures: The portion of fund balance that represents the asset amount of
prepaid expenditures held by a given fund.
Advances to other funds: The portion of fund balance that represents the asset amount
of advances to other funds held by a given fund.
Committed Fund Balance
Capital Projects: The portion of fund balance that has been appropriated for specific
capital projects and remains unspent.
Contingency: The portion of fund balance placed in reserve for spending in the event of
an emergency or economic uncertainty. Contingency reserves can be spent down when
the City's operations are impacted by factors outside the City's control. Examples of
such circumstances would include unforeseen changes in anticipated costs in the case
of local disasters or catastrophic events such as storm damage, landslides, energy
costs, water main line breaks or well production shortages, financial hardships or
downturns in the local or national economy, state budget implications, imposition of
state or federal mandates or other unforeseen legal requirements, unexpected
interruptions in cash flows.
Assigned Fund Balance
City Hall Replacement: The portion of fund balance that has been set aside to fund new
City Hall facilities.
Encumbrances: The portion of fund balance attributable to appropriations carried over
from a prior year into the year under operation.
Unassigned Fund Balance
Fund Balance — Unassigned: Any portion of General Fund fund balance that does not
comply with any other fund balance component category.
EXHIBIT A- Page 7 of 8
ATTACHMENT B
VARIOUS COMPONENTS OF BUDGETED RESERVES FOR ENTERPRISE FUNDS
Committed Fund Balance
Contingency. The portion of fund balance budgeted to reserves for spending in the
event of an emergency or negative economic condition.
Bond Reserve: The portion of fund balance budgeted to reserves for meeting required
debt service obligations of bonds.
Assigned Fund Balance
Capital Projects: Budgeted fund balance of Enterprise Capital Improvement Projects
Funds that has been appropriated for specific capital projects and remains unspent.
Capital Replacement: The portion of fund balance budgeted for the replacement of
existing capital assets.
Unassigned Fund Balance
Fund Balance — Unassigned. Any portion of budgeted fund balance that does not
comply with any other fund balance component category.
EXHIBIT A- Page 8 of 8
RESOLUTION NO. 16-06-21-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SAN JUAN CAPISTRANO TO AMEND THE TERMS
OF THE SEWER ENTERPRISE FUND'S INVESTMENT IN
A PROMISSORY NOTE OF THE SAN JUAN
CAPISTRANO WATER ENTERPRISE FUND AND
AUTHORIZING THE EXECUTION OF THE AMENDED
PROMISSORY NOTE BY THE WATER ENTERPRISE
FUND
WHEREAS, in 2015 the City Council of the City of San Juan Capistrano settled
the water rate case, Capistrano Taxpayers Association v. City of San Juan Capistrano,
Case No. 30-2012-00594579 ("CTA Lawsuit"); and,
WHEREAS, in the CTA Lawsuit, the Court of Appeals concluded that the City's
tiered water rates were not supported by evidence of increased costs for the upper tiers,
and as a result, on June 16, 2015, the City Council authorized a process for refunding
water rate overcharges to the City's water rate payers; and,
WHEREAS, the City of San Juan Capistrano's Water Enterprise Fund ("Water
Fund") did not have the funds available to pay for the costs of the CTA Lawsuit
settlement, including the costs of settlement and of refunding of the overcharged water
rates; and,
WHEREAS, the City of San Juan Capistrano's Sewer Enterprise Fund ("Sewer
Fund") had available funds to loan such amount to the Water Enterprise; and,
WHEREAS, in order to meet the obligations involved in the resolution of the
CTA Lawsuit, the Water Enterprise issued a Promissory Note (the "Promissory Note")
payable to the Sewer Fund; and,
WHEREAS, Section 53601 of the California Government Code provides that,
subject to the limitations specified therein, the legislative body of a local agency
(including a local agency such as the City) having money in its treasury not required for
the immediate needs of the local agency, may invest any portion of the money that it
deems wise or expedient in bonds, notes, warrants or other evidences of indebtedness
of any local agency within the State of California (including a local agency such as the
Water Fund); and,
WHEREAS, the Sewer Fund invested in the Promissory Note by advancing to
the Water Fund the principal amount thereof; and,
WHEREAS, such advance was used by the Water Enterprise to meet the
obligations cause by the CTA Lawsuit, including the refund of overcharged water rates
as authorized by the City Council; and,
1
ATTACHMENT 9
WHEREAS, the City Council authorized the investment by the Sewer Fund of
moneys in its treasury in the form of a Promissory Note and the performance of such
acts by or on behalf of the City as may be necessary or desirable to effect such
investment.
WHEREAS, the Water Fund is expected to experience higher than expected
expenses in Fiscal Year 2016-17, including higher than normal legal expenses, an
increase in the costs of imported water, reduced revenue as a result of the City's water
conservation program, and the delayed full financial benefits of the City's five-year
phase-in of the water rate increases that began on July 1, 2014.
WHEREAS, as a result of these conditions, the City Council finds it
advantageous to extend by one year the commencement of the payment of principal by
the Water Fund to the Sewer Fund.
WHEREAS, these conditions are expected to be sufficiently mitigated in Fiscal
Year 2017-18 to allow for the commencement of principal payments to the Sewer Funds
at that time.
WHEREAS, this one year delay in repayment of the loan will not interfere with
the ability of the Sewer Funds to fund the projects and activities needed for Fiscal Year
2016-17 because of the sufficiency of reserves that have been accumulated in the
Sewer Operations Fund and the Sewer Capital Improvement Fund to provide for these
needs.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San
Juan Capistrano does hereby resolve as follows.
SECTION 1. The due date of the Promissory Note authorized on August 4, 2015
between the Water Enterprise Fund and the Sewer Enterprise Fund is hereby extended
from June 30, 2019 to June 30, 2020. All other terms pertaining to the Note remain
unchanged.
SECTION 2. The City Council hereby finds and determines that the Sewer
Enterprise Fund has sufficient funds to meet its operating and capital needs to allow for
the one-year extension of the due date of the Promissory Note.
SECTION 3. The City Council hereby approves the Amended Promissory Note
attached to this resolution.
Signature Page Follows
2
ATTACHMENT 9
PASSED APPROVED, AND ADOPTED on 2016.
Pamela Patterson, Esq., Mayor
ATTEST:
Maria Morris, City Clerk
APPROVED AS TO FORM:
Jeff Ballinger, City Attorney
3
ATTACHMENT 9
AMENDED PROMISSORY NOTE
Initial Principal Amount: not to exceed: $4,420,000.00 San Juan Capistrano, California
Estimated Accreted Value at Maturity: $4,550,200.00 June 30, 2015
FOR VALUE RECEIVED, the San Juan Capistrano Water Enterprise Fund (together
with any and all of its successors, the "Water Enterprise") hereby promises to pay to the City of
San Juan Capistrano Sewer Enterprise Fund (together with any and all of its successors and
assigns, the "Sewer Fund"), starting on December 31, 2017, and paid semi-annually .on
December 31 and June 30, until June 30, 2020 (the Maturity Date") principal and any accrued,
unpaid interest, in lawful money of the United States of America, at 32400 Paseo Adelanto, San
Juan Capistrano, California, or at such other address as may be specified by the Sewer Fund,
the principal amount of $4,420,000, together with interest accrued thereon from June 30, 2015
to the Maturity Date at the rate of 0.78% per annum, compounded semiannually on December
31 and June 30 in each year, commencing December 31, 2015 (each such date an "Interest
Accrual Date") calculated on the basis of a 360-day year comprised of twelve 30-day months
(the "Accreted Value"). This Promissory Note, and any renewals or extensions hereof and as
the same may be amended, restated or supplemented from time to time, is referred to herein as
this "Note."
Section 1. Authorit • Nature of Obligation. On June 16, 2015, the City Council of
the City of San Juan Capistrano authorized the refund of water rates to ratepayers who overpaid
water rates during the period of August 28, 2013, to June 30, 2014. This was done following the
Court of Appeals decision in Capistrano Taxpayers Association v. City of San Juan Capistrano
(the "CTA Lawsuit"). Based on the City's estimates, the amount of potential refunds, when
combined with the attorneys' fees paid to the plaintiffs attorneys in the CTA Lawsuit and
accrued interest, are estimated to total Four Million Four Hundred Twenty Thousand Dollars
($4,420,000.00). The Water Enterprise does not currently have such funds available, and in
order to meet the refund obligations, the Water Enterprise needs an inflow of cash totaling
$4,420,000.00. The funds provided from the Sewer Fund as consideration for this Promissory
Note will provide the cash necessary to meet the water rate refund obligation and plaintiff's
attorneys'fees.
The obligations of the Water Enterprise under this Note, including the obligation to make
all payments of the Accreted Value hereof when due or upon prepayment hereof, are
obligations of the Water Enterprise imposed by law and are absolute and unconditional, without
any right of set-off or counterclaim. This Note does not constitute an obligation of the Water
Enterprise for which the Water Enterprise is obligated to levy or pledge any form of taxation or
for which the Water Enterprise has levied or pledged any form of taxation, and neither this Note
nor the obligation of the Water Enterprise to make payment of the Accreted Value hereof
constitutes an indebtedness of the Water Enterprise or the State of California, or any of its
political subdivisions, in contravention of any constitutional or statutory debt limitation or
restriction.
Section 2. Prepayment. The Water Enterprise may voluntarily prepay this Note, in
whole or in part (including interest), on any date, by paying to the Sewer Fund, in lawful money
of the United States of America, at 32400 Paseo Adelanto, San Juan Capistrano, California, or
at such other address as may be specified by the Sewer Fund, an amount equal to all or a
portion of the Accreted Value hereof as of such prepayment date. Upon any such prepayment,
the Accreted Value hereof as of the date of such prepayment, shall, ipso facto, be reduced by
an amount equal to the amount of such prepayment and, as of such prepayment date, interest
1
EXHIBIT A
shall accrue on such reduced Accreted Value, and shall be compounded, as described above.
The Water Enterprise shall endeavor to give the Sewer Fund written notice of its intention to
prepay all or a portion of this Note not less than ten days prior to the applicable prepayment
date; provided that any prepayment shall be valid as of the actual date of such prepayment
even if such notice is given late.
Section 3. Events of Default and Remedies. The failure of the Water Enterprise to
pay the Accreted Value hereof, as and when due, shall constitute an event of default under this
Note (an "Event of Default"). If an Event of Default shall occur and be continuing, the Sewer
Fund may, at its option, without prior notice or demand, and is hereby authorized and
empowered by the Water Enterprise, at any time and from time to time, exercise all or any one
or more of the rights, powers or other remedies available to the Sewer Fund against the Water
Enterprise under applicable law. Upon the occurrence and during the continuance of an Event
of Default, interest shall accrue on the Accreted Value hereof at the rate of 0.78% per annum,
and shall be compounded, as described above.
Section 4. Costs and Expenses of Enforcement. Upon the occurrence and during
the continuance of an Event of Default, the Water Enterprise agrees to pay to the Sewer Fund
on demand all costs and expenses incurred by the Sewer Fund in seeking to collect this Note or
to enforce any of the Sewer Fund's rights and remedies hereunder, including court costs and
reasonable attorneys' fees and expenses, whether or not suit is filed hereon, or whether in
connection with bankruptcy, insolvency or appeal.
Section 5. Certain Provisions Regarding Payments. All payments made under
this Note shall be made without offset, demand, counterclaim, deduction or recoupment(each of
which is hereby waived) and shall be accepted subject to the condition that any check or draft
may be handled for collection in accordance with the practice of the collecting bank or banks.
Acceptance by the Sewer Fund of any payment in an amount less than the amount then due
shall be deemed an acceptance on account only, notwithstanding any notation on or
accompanying such partial payment to the contrary, and shall not in any way (a) waive or
excuse the existence of an Event of Default, (b) waive, impair or extinguish any right or remedy
available to the Sewer Fund, or(c)waive the requirement of punctual payment and performance
or constitute novation in any respect.
Section 6. General Provisions. Time is of the essence with respect to the Water
Enterprise's obligations under this Note. To the extent permitted by applicable law, the Water
Enterprise hereby (a) waives demand, presentment for payment, notice of dishonor and of
nonpayment, protest, notice of protest and all other notices, filing of suit and diligence in
collecting this Note, (b) agrees that the Sewer Fund shall not be required first to institute suit or
exhaust its remedies hereon against the Water Enterprise, and (c) consents to any extensions
or postponements of time of payment of this Note for any period or periods of time and to any
partial payments, before or after maturity, and to any other indulgences with respect hereto,
without notice thereof. A determination that any provision of this Note is unenforceable or invalid
shall not affect the enforceability or validity of any other provision and the determination that the
application of any provision of this Note to any person or circumstance is illegal or
unenforceable shall not affect the enforceability or validity of such provision as it may apply to
other persons or circumstances. This Note may not be amended except in a writing specifically
intended for such purpose and executed by the party against whom enforcement of the
amendment is sought. Captions and headings in this Note are for convenience only and shall be
disregarded in construing it.
2
EXHIBIT A
Section 7. Notices. All written notices, statements, demands, consents, approvals,
authorizations, offers, designations, requests or other communications hereunder shall be given
to the party entitled thereto at its address set forth below, or at such other address as such party
may provide to the other parties in writing from time to time, namely:
If to the Water Enterprise: Water Enterprise Fund
City of San Juan Capistrano
32400 Paseo Adelanto
San Juan Capistrano, California 92675
Attention: Finance Director
If to the Sewer Fund: Sewer Enterprise Fund
32400 Paseo Adelanto
San Juan Capistrano, California 92675
Attention: Finance Director
Each such notice, statement, demand, consent, approval, authorization, offer,
designation, request or other communication hereunder shall be deemed delivered to the party
to whom it is addressed (a) if given by courier or delivery service or if personally served or
delivered, upon delivery, (b) if given by telecopier, upon the sender's receipt of an appropriate
answerback or other written acknowledgment, (c) if given by registered or certified mail, return
receipt requested, deposited with the United States mail postage prepaid, 72 hours after such
notice is deposited with the United States mail, or(d) if given by any other means, upon delivery
at the address specified in this Section.
Section 8. Governing Law. In all respects, including matters of construction, validity
and performance, this Note and the obligations arising hereunder shall be governed by, and
construed in accordance with, the laws of the State of California.
IN WITNESS WHEREOF, the Water Enterprise has duly executed this Note as of the
date first above written.
San Juan Capistrano Water Enterprise Fund
By:
Pamela Patterson, Esq., Mayor
3
EXHIBIT A
AMENDED PROMISSORY NOTE AMORTIZATION SCHEDULE
Sewer Enterprise Fund Loan to the Water Enterprise Fund
Maximum Loan Amount: $4,420,000
Interest Rate (Annual): 0.78%
Terms (yrs): 5
1st Principal payment: December 31, 2017
Accrued Interest from June 30, 2015, through December 31, 2020, is $130,200
Interest is compounded semi-annually.
Projected Amortization Schedule*
Year Debt Service Payment Principal Interest Total
(FY) Date:
1 2015-2016
2 2016-2017
3 2017-2018 12/31/2017* $700,000 $86,324 $786,324
6/30/2018 $730,000 $14,508 $744,508
4 2018-2019 12/31/2018 $735,000 $11,661 $746,661
6/30/2019 $740,000 $8,795 $748,795
5 2019-2020 12/31/2019 $745,000 $5,909 $750,909
6/30/2020 $770,000 $3,003 $773,003
Total: $4,420,000 $130,200 $4,550,200
* includes interest accrued from June 30, 2015, through December 31, 2017.
4
EXHIBIT A
CITY OF SAN JUAN CAPISTRANO
INVESTMENT POLICY
FIRST ADOPTED: APRIL 4, 1995
LAST REVIEW AND AMENDMENT: JUNE 15, 2015
CURRENT REVIEW AND AMENDMENT: JUNE 21, 2016
I. POLICY STATEMENT
It is the policy of the City of San Juan Capistrano (City) to invest public funds in a
manner which will provide security of principal invested, meet the daily cash flow
needs of the City, seek to achieve a market rate of return throughout budgetary
and economic cycles, and conform to the California Government Code sections
governing the investment of public funds.
II. SCOPE
This Investment Policy applies to all financial assets and funds held by the City of
San Juan Capistrano with the exception of deferred compensation assets
(pension and other post-employment benefits) held in a trust and funds held by
bond trustee that are controlled by the legal requirements of a debt indenture.
For purposes of this policy, the "City of San Juan Capistrano" includes all funds
of the City, the funds of the Successor Agency to the Community Redevelopment
Agency of the City of San Juan Capistrano, the funds of the San Juan Capistrano
Housing Authority, and the funds of any component unit that may be established
by the City.
III. OBJECTIVES
The primary objectives, in priority order, of the City of San Juan Capistrano's
investment activities shall be:
A, SAFETY OF PRINCIPAL - Safety of principal is the foremost objective of
the City. Investments of the City shall be undertaken in a manner that
seeks to insure the preservation of capital in the portfolio. One of the
methods to obtain this goal is diversification which is required in the
portfolio's composition.
B. LIQUIDITY - The City's investment portfolio will remain sufficiently liquid to
enable it to meet all operating requirements which might be reasonably
anticipated. "Liquidity" refers to the ability to sell at any given moment with
a minimal chance of losing some portion of principal or interest.
C. RETURN - The City's investment portfolio shall be designed with the
objective of attaining a market average rate of return throughout budgetary
and economic cycles, taking into account the City's risk constraints and
cash flow needs.
1
ATTACHMENT 10
The City shall not engage in any activity that is designed to raise funds
specifically for the purpose of investing (i.e., borrowing funds to invest, or
leveraging). The City is not restricted from investing proceeds from a bonafide
debt issuance in accordance with this investment policy until such time as funds
are needed for the purpose intended.
IV. DELEGATION OF AUTHORITY
A. The authority of the City Council to invest or reinvest funds of the City is
delegated for a one-year period to the City Treasurer, who shall thereafter
assume full responsibility for those transactions until the delegation of
authority is revoked or expires. Subject to review, the City Council may
renew the delegation of authority each year.
B. The City may delegate investment authority to an investment advisor. The
advisor will follow the Investment Policy and such other written instructions
as are provided.
C. The City Treasurer shall designate a staff person as a liaison/deputy in the
event circumstances require timely action and the City Treasurer is not
present.
D. No officer or designee may engage in an investment transaction except as
provided under terms of this Investment Policy and the procedures
established by the City Treasurer and approved by the City Manager.
E. The City Treasurer shall be responsible for all transactions undertaken
and shall establish a system of controls to regulate the activities of
subordinate officials.
F. The City Treasurer and other personnel involved in the investment
process shall refrain from personal business activities that could conflict
with proper execution of the investment program, or which could impair
their ability to make impartial investment decisions.
2
ATTACHMENT 10
V. PRUDENCE
A. The standard of prudence to be used in the investment function shall be
the "prudent investor" standard and shall be applied in the context of
managing the overall portfolio. This standard states, "When investing,
reinvesting, purchasing, acquiring, exchanging, selling, or managing public
funds, a trustee shall act with care, skill, prudence, and diligence under
the circumstances then prevailing, including, but not limited to, the general
economic conditions and the anticipated needs of the agency, that a
prudent person acting in a like capacity and familiarity with those matters
would use in the conduct of funds of a like character and with like aims, to
safeguard the principal and maintain the liquidity needs of the agency."
B. The City Treasurer, acting in accordance with written procedures and this
Investment Policy, shall not be held personally accountable for a specific
security's credit risk or market price change, provided that any unexpected
deviations are reported in a timely manner and that appropriate action is
taken to control adverse development.
C. The City may invest debt issuance proceeds to match or meet the
anticipated timing of the expenditures. The City may not incur debt with
the specific and sole purpose of arbitrage investment.
VI. INTERNAL CONTROLS/INVESTMENT PROCEDURES
A The City Treasurer shall establish a system of written internal controls
which will be reviewed annually with the independent auditor. The controls
shall be designed to prevent loss of public funds due to fraud, employee
error, misrepresentation by third parties, unanticipated market changes or
imprudent actions by employees of the City of San Juan Capistrano.
B. The City Treasurer shall develop and maintain investment procedures for
the operation of the investment program which are consistent with this
Investment Policy. Procedures will include reference to
safekeeping/custody, wire transfer agreements, collateral and deposit
agreements, and other investment related activities.
VII. AUTHORIZED INVESTMENTS
Where this Policy specifies a percentage limitation for a particular security type or
issuer, that percentage is applicable at the time the security is purchased. Credit
criteria listed in this section refers to the credit rating at the time the security is
purchased. If an investment's credit rating falls below the minimum rating
required at the time of purchase, the City's investment advisor (if any) and
Treasurer will review the rating agency action and decide whether to sell or hold
the investment.
3
ATTACHMENT 10
A. Obligations of the United States Government, its agencies and
instrumentalities and government sponsored enterprises.
B. Non-negotiable deposits in a state or national bank, savings association or
federal association, federal or state credit union in the State of California.
In accordance with California Government Code Section 53635.2, to be
eligible to receive City deposits, a financial institution shall have received
an overall rating of not less than "satisfactory" in its most recent evaluation
by the appropriate federal financial supervisory agency of its record of
meeting the credit needs of California's communities. Certificates of
deposit are required to be collateralized as specified under Government
Code Section 53630 et seq. The City, at its discretion, may waive the
collateralization requirements for any portion that is covered by Federal
Deposit Insurance Corporation (FDIC) insurance. The City shall have a
signed agreement with any depository accepting City funds per
Government Code Section 53649. No deposits shall be made at any time
in certificates of deposit issued by a state or federal credit union if a
member of the City Council or the Chief Financial Officer serves on the
board of directors or any committee appointed by the board of directors of
the credit union. In accordance with Government Code Section 53638,
any deposit shall not exceed that total shareholder's equity of any
depository bank, nor shall the deposit exceed the total net worth of any
institution.
C. Negotiable certificates of deposit issued by a nationally or state-chartered
bank, a savings association or a federal association (as defined by
Section 5102 of the Financial Code), a state or federal credit union, or by
a federally- or state-licensed branch of a foreign bank. Negotiable
certificates of deposit with maturities in excess of one year must be rated
"A" or its equivalent or better by at least two (NRSROs). Negotiable
certificates of deposit with maturities under one year must be rated at least
"A-1," its equivalent, or better by at least two nationally recognized
statistical-rating organizations (NRSRO). No more than 30% of the City's
investment portfolio may be invested in negotiable certificates of deposit.
D. Shares of beneficial interest issued by diversified management companies
that are money market funds registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 (15 U.S.C. Sec.
80a-1, et seq.). To be eligible for investment pursuant to this subdivision
these companies shall either: have an investment advisor registered or
exempt from registration with the Securities and Exchange Commission
with not less than 5 years experience managing money market mutual
funds and with assets under management in excess of $500,000,000, or
attain the highest ranking letter or numerical rating provided by not less
than two of the three largest NRSROs.
4
ATTACHMENT 10
E. The State of California Local Agency Investment Fund (LAIF), as
authorized by the Government Code Section 16429.1.
F. Orange County Investment Pool, as authorized by the Government Code
Section 53684.
G. Local government investment pools (LGIPs), as authorized by the
Government Code Section 53601(p).
H. Passbook Savings Account Demand Deposits in California financial
institutions.
I, Taxable or tax-exempt warrants, notes, bonds or similar evidences of
indebtedness issued by the State of California, a department, board,
agency, or authority of the State, or any local agency within the State of
California having received a rating of "A" or better by at least two
NRSROs. Obligations eligible for investment under this subdivision with
maturities under one year must be rated at least "A-1," its equivalent, or
better by two NRSROs.
J. Registered treasury notes or bonds of any of the other 49 states in
addition to California, including bonds payable solely out of the revenues
from a revenue-producing property owned, controlled, or operated by a
state or by a department, board, agency, or authority of any of the other
49 states, in addition to California. Obligations eligible for investment
under this subdivision must be rated "A" or its equivalent or better by at
least two NRSROs. Obligations eligible for investment under this
subdivision with maturities under one year must be rated at least "A-1," its
equivalent, or better by two NRSROs.
K. Bankers' acceptances that are drawn on and accepted by a commercial
bank. Eligible bankers' acceptances shall have the highest ranking or the
highest letter and number rating as provided for by at least two NRSROs
and a maximum maturity of 180 days.
L. Commercial paper of "prime" quality of the highest ranking or of the
highest letter and number rating as provided for by at least two NRSROs.
The entity that issues the commercial paper shall meet all of the following
conditions in either paragraph (1) or paragraph (2):
1) The entity meets the following criteria:
a. Is organized and operating in the United States as a general
corporation.
b. Has total assets in excess of five hundred million dollars
($500,000,000).
c. Has debt other than commercial paper, if any, that is rated "A" or
higher, or the equivalent, by at least two NRSROs.
5
ATTACHMENT 10
2) The entity meets the following criteria:
a. Is organized within the United States as a special purpose
corporation, trust, or limited liability company.
b. Has program wide credit enhancements including, but not limited
to, over collateralization, letters of credit, or surety bond.
c. Has commercial paper that is rated "A-1" or higher, or the
equivalent, by at least two NRSROs.
Eligible commercial paper shall have a maximum maturity of 270 days.
Investments may not represent more than 10% of the outstanding
commercial paper of any single corporate issue.
M. Medium-term corporate notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of 5 years or
less, issued by corporations organized and operating within the United
States or by depository institutions licensed by the United States or any
state and operating within the United States. Medium-term corporate
notes shall be rated in a rating category "A" or its equivalent or better by at
least two NRSROs.
N. Supranationals, defined as United States dollar denominated senior
unsecured unsubordinated obligations issued or unconditionally
guaranteed by the International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), or Inter-American
Development Bank (IADB), with a maximum remaining maturity of five
years or less, and eligible for purchase and sale within the United States.
Investments under this subdivision shall be rated "AAA" or its equivalent or
better by at least two NRSROs.
O. Asset-Backed Securities (ABS). Any mortgage pass-through security,
collateralized mortgage obligation, mortgage-backed or other pay-through
bond, equipment lease-back certificate, consumer receivable pass-
through certificate, or consumer receivable-backed bond of a maximum of
five years maturity. Securities eligible for investment under this subdivision
shall be issued by an issuer having an "A" or its equivalent or better for the
issuer's debt by at least two by NRSROs and rated in a rating category of
"AK or its equivalent or better by at least two NRSROs.
If additional types of securities are approved for investment of public funds by the
California Government Code, they will not be eligible for investment by the City of
San Juan Capistrano until this Investment Policy is amended and the
amendment is passed by the City Council.
VIII. DIVERSIFICATION AND MATURITY
A. It is the policy of the City to diversify its investment portfolio. Invested
funds shall be diversified to minimize the risk of loss resulting from over
6
ATTACHMENT 10
concentration of assets in a specific maturity, specific issuer, or specific
class of securities. Diversification strategies shall be established and
periodically reviewed by the City Treasurer and City Manager. The
minimum diversification standards by security type and issuer shall be:
U.S. Treasuries and securities having principal and interest
guaranteed by the U.S. Government............................................................. 100%
U.S. Government agencies, instrumentalities and government
Sponsored enterprises ............................................................no more than 100%
Non-negotiable CDs ..................................................................no more than 25%
Negotiable CDs .........................................................................no more than 30%
Money market funds..................................................................no more than 20%
Local Agency Investment Funds (LAIF)...................................no more than 100%
Orange County Investment Pool................................................no more than 40%
Local government investment pools LGIPs .no more than 40%
Passbook Savings Account Demand Deposit .............................no more than 5%
Municipal obligations .................................................................no more than 25%
Bankers' acceptances ...............................................................no more than 30%
Commercial paper.....................................................................no more than 25%
Medium-term corporate notes....................................................no more than 30%
International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), and
Inter-American Development Bank (IADB) (Supranationals) no more than 15%
Asset-Backed Securities............................................................no more than 20%
No more than 5% of the City's investment portfolio may be invested in the
securities of any one issuer regardless of security type excluding U.S.
Treasuries, U.S. Government agencies, Supranationals, and pooled investments
such as LAIF, LGIPs, and money market funds.
B. The City shall not invest in a security whose maturity exceeds five years
from the date of purchase unless City Council has provided approval for a
specific purpose at least 90 days before the investment is made.
C The City Treasurer shall be required to diversify maturities. The City
Treasurer, to the extent possible, will attempt to match investments with
anticipated cash flow requirements. Matching maturities with cash flow
dates will reduce the need to sell securities prior to maturity, thus reducing
market risk. Unless matched to a specific requirement, the City Treasurer
may not invest more than 25% of the portfolio for a period greater than
three years. When matched to a specific requirement and with approval by
the Council, the City Treasurer may invest more than 25% of the portfolio
for a period greater than three years.
IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer will maintain a list of financial dealers and institutions qualified
7
ATTACHMENT 10
and authorized to transact business with the City.
The purchase by the City of any investment other than those purchased directly
from the issuer, will be purchased either from an institution licensed by the State
as a broker-dealer, as defined in Section 25004 of the Corporations Code, which
is a member of the Financial Industry Regulatory Authority (FINRA), or a member
of a federally regulated securities exchange, a national or state chartered bank, a
federal or state association (as defined by Section 5102 of the Financial Code),
or a brokerage firm designated as a Primary Government Dealer by the Federal
Reserve Bank.
The City Treasurer will investigate all institutions that wish to do business with
the City to determine if they are adequately capitalized, make markets in
securities appropriate for the City's needs, and agree to abide by the conditions
set forth in this City's Investment Policy and any other guidelines that may be
provided. This will be done annually by having the financial institutions:
1. Provide written notification that they have read, and will abide by, the
City's Investment Policy.
2. Submit their most recent audited Financial Statement within 120 days of
the institution's fiscal year end.
If the City has an investment advisor, the investment advisor may use its own list
of authorized broker/dealers to conduct transactions on behalf of the City.
Purchase and sale of securities will be made on the basis of competitive bids and
offers with a minimum of three quotes being obtained.
X. INVESTMENT POOLS
The City Treasurer will perform an annual review of the investment policy and
portfolio of any investment pools in which the City invests, including LAIF, the
Orange County Investment Pool, and LGIPs.
XI. SAFEKEEPING/CUSTODY AND COLLATERALIZATION
A. All security transactions entered into by the City shall be conducted on a
delivery versus payment (DVP) basis.
B. Where applicable, all securities shall be held by a third-party bank
custodian designated by the City Treasurer. The third-party custodian
shall be required to issue a safekeeping receipt to the City listing the
specific instrument, rate, maturity and other pertinent information. The only
exception to the foregoing shall be depository accounts and securities
purchases made with: (i) LAIF and local government investment pools; (ii)
placement certificates of deposit, and, (iii) money market mutual funds,
8
ATTACHMENT 10
since the purchased securities are not deliverable. Evidence of each these
investments will be held by the City Treasurer.
C. Collateralization on bank deposits (including Certificates of Deposit and
Passbook Savings Account Demand Deposit) shall be required in
accordance with state law.
XII. REPORTING
A. The City Treasurer shall make a monthly report of investment transactions
and holdings to the City Council.
B. If the City has an investment advisor, the investment advisor shall
periodically report on the activity and results of the funds being managed
by the investment advisor.
C. The City Treasurer shall include a report on investment holdings in the
City's Comprehensive Annual Financial Report as required by generally
accepted accounting principles (GAAP) and the Governmental Accounting
Standards Board (GASB).
XIII. PERFORMANCE EVALUATION
The City shall establish an appropriate performance benchmark and compare the
total return of its investment portfolio to the total return of the benchmark.
XV. INVESTMENT POLICY ADOPTION
The City's Investment Policy shall be reviewed annually. Any recommended
modifications shall be reviewed and approved by the City Council.
XVI. GLOSSARY
A glossary of financial terms referenced herein is appended. See Exhibit A.
9
ATTACHMENT 10
CITY OF SAN JUAN CAPISTRANO
INVESTMENT POLICY
FIRST ADOPTED:APRIL 4, 1995
LAST REVIEW AND AMENDMENT: JUNE 2'315,20145
CURRENT REVIEW AND AMENDMENT: JUNE 4521XX,2-0152016
I. POLICY STATEMENT
It is the policy of the City of San Juan Capistrano(City)to invest public funds in a
manner which will provide security of principal invested, meet the daily cash flow
needs of the City, seek to achieve a market rate of return throughout budgetary
and economic cycles, and conform to the California Government Code sections
governing the investment of public funds.
II. SCOPE
This Investment Policy applies to all financial assets and funds held by the City of
San Juan Capistrano with the exception of deferred compensation assets
(pension and other post-employment benefits) held in a trust and funds held by
bond trustee that are controlled by the legal requirements of a debt indenture.
For purposes of this policy, the "City of San Juan Capistrano"includes all funds
of the City,the funds of the Successor Agency to the Communiiy Redevelopment
Agency of the City of San Juan Capistrano, the funds of the San Juan Capistrano
Housing Authority, and the funds of any component unit that may be established
by the City.€4jnd&Aha ten^, MAt- -ply ,:it t#;_inye +ned4"I� e
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III. OBJECTIVES
The primary objectives, in priority order, of the City of San Juan Capistrano's
investment activities shall be:
A. SAFETY OF PRINCIPAL - Safety of principal is the foremost objective of
the City. Investments of the City shall be undertaken in a manner that
seeks to insure the preservation of capital in the portfolio. One of the
1
EXHIBIT A
methods to obtain this goal is diversification which is required in the
portfolio's composition.
B. LIQUIDITY-The City's investment portfolio will remain sufficiently liquid to
enable it to meet all operating requirements which might be reasonably
anticipated. "Liquidity"refers to the ability to sell at any given moment with
a minimal chance of losing some portion of principal or interest.
C. RETURN - The City's investment portfolio shall be designed with the
objective of attaining a market average rate of return throughout budgetary
and economic cycles, taking into account the City's risk constraints and
cash flow needs.
The City shall not engage in any activity that is designed to raise funds
specifically for the purpose of investing (i.e., borrowing funds to invest, or
leveraging). The City is not restricted from investing proceeds from a bonafide
debt issuance in accordance with this investment policy until such time as funds
are needed for the purpose intended.
IV. DELEGATION OF AUTHORITY
A. The authority of the City Council to invest or reinvest funds of the City is
delegated for a one-year period to the City Treasurer,who shall thereafter
assume full responsibility for those transactions until the delegation of
authority is revoked or expires. Subject to review, the City Council may
renew the delegation of authority each year.
B. The City may delegate investment authority to an investment advisor. The
advisor will follow the Investment Policy and such other written instructions
as are provided.
C. The City Treasurer shall designate a staff person as a liaison/deputy in the
event circumstances require timely action and the City Treasurer is not
present.
D_ No officer or designee may engage in an investment transaction except as
provided under terms of this Investment Policy and the procedures
established by the City Treasurer and approved by the City Manager.
E. The City Treasurer shall be responsible for all transactions undertaken
and shall establish a system of controls to regulate the activities of
subordinate officials.
F. The City Treasurer and other personnel involved in the investment
process shall refrain from personal business activities that could conflict
with proper execution of the investment program, or which could impair
their ability to make impartial investment decisions.
2
EXHIBIT A
V. PRUDENCE
A. The standard of prudence to be used in the investment function shall be
the "prudent investor" standard and shall be applied in the context of
managing the overall portfolio. This standard states, "When investing,
reinvesting, purchasing, acquiring, exchanging, selling, or managing public
funds, a trustee shall act with care, skill, prudence, and diligence under
the circumstances then prevailing, including, but not limited to,the general
economic conditions and the anticipated needs of the agency, that a
prudent person acting in a like capacity and familiarity with those matters
would use in the conduct of funds of a like character and with like aims,to
safeguard the principal and maintain the liquidity needs of the agency."
B. The City Treasurer, acting in accordance with written procedures and this
Investment Policy, shall not be held personally accountable for a specific
security's credit risk or market price change, provided that any unexpected
deviations are reported in a timely manner and that appropriate action is
taken to control adverse development.
C. The City may invest debt issuance proceeds to match or meet the
anticipated timing of the expenditures. The City may not incur debt with
the specific and sole purpose of arbitrage investment.
VI. INTERNAL CONTROLSIINVESTMENT PROCEDURES
A The City Treasurer shall establish a system of written internal controls
which will be reviewed annually with the independent auditor.The controls
shall be designed to prevent loss of public funds due to fraud, employee
error, misrepresentation by third parties, unanticipated market changes or
imprudent actions by employees of the City of San Juan Capistrano.
B. The City Treasurer shall develop and maintain written investment
procedures for the operation of the investment program which are
consistent with this Investment Policy. Procedures will include reference to
safekeeping/custody, wire transfer agreements, collateral and deposit
agreements, and other investment related activities.
VII. AUTHORIZED INVESTMENTS
Where this Policy specifies a percentage limitation for a particular security type or
issuer, that percentage is applicable at the time the security is purchased. Credit
criteria listed in this section refers to the credit rating at the time the security is
purchased. If an investment's credit rating falls below the minimum rating
required at the time of purchase, the City's investment advisor (if any) and
Treasurer will review the rating agency action and decide whether to sell or hold
the investment.
3
EXHIBIT A
A. Obligations of the United States Government, its agencies and
instrumentalities and government sponsored enterprises.
B. Non-negotiable deposits in a state or national bank, savings association or
federal association, federal or state credit union in the State of California.
In accordance with California Government Code Section 53635.2, to be
eligible to receive City deposits, a financial institution shall have received
an overall rating of not less than "satisfactory"in its most recent evaluation
by the appropriate federal financial supervisory agency of its record of
meeting the credit needs of California's communities. Certificates of
deposit are required to be collateralized as specified under Government
Code Section 53630 et seq. The City, at its discretion, may waive the
collateralization requirements for any portion that is covered by Federal
Deposit Insurance Corporation (FDIC) insurance. The City shall have a
signed agreement with any depository accepting City funds per
Government Code Section 53649. No deposits shall be made at any time
in certificates of deposit issued by a state or federal credit union if a
member of the City Council or the Chief Financial Officer serves on the
board of directors or any committee appointed by the board of directors of
the credit union. In accordance with Government Code Section 53638,
any deposit shall not exceed that total shareholder's equity of any
depository bank, nor shall the deposit exceed the total net worth of any
institution.
C. Negotiable certificates of deposit issued by a nationally or state-chartered
bank, a savings association or a federal association (as defined by
Section 5102 of the Financial Code), a state or federal credit union, or by
a federally- or state-licensed branch of a foreign bank. Negotiable
certificates of deposit with maturities in excess of one year must be rated
"A" or its equivalent or better by at least two (NRSROs). Negotiable
certificates of deposit with maturities under one year must be rated at least
"A-1," its equivalent, or better by at least two nationally recognized
statistical-rating organizations (NRSRO). No more than 30% of the City's
investment portfolio may be invested in negotiable certificates of deposit.
D. Shares of beneficial interest issued by diversified management companies
that are money market funds registered with the Securities and Exchange
Commission under the Investment Company Act of 1940 (15 U.S.C. Sec.
80a-1, et seq.). To be eligible for investment pursuant to this subdivision
these companies shall either: have an investment advisor registered or
exempt from registration with the Securities and Exchange Commission
with not less than 5 years experience managing money market mutual
funds and with assets under management in excess of$500,000,000, or
attain the highest ranking letter or numerical rating provided by not less
than two of the three largest NRSROs.
4
EXHIBIT A
E. The State of California Local Agency Investment Fund (LAIF), as
authorized by the Government Code Section 16429.1.
F. Orange County Investment Pool, as authorized by the Government Code
Section 53684.
G. Local government investment pools (LGIPs), as authorized by the
Government Code Section 53601(p).
H. Passbook Savings Account Demand Deposits in California financial
institutions.
I. Taxable or tax-exempt warrants, notes, bonds or similar evidences of
indebtedness issued by the State of California, a department, board,
agency, or authority of the State, or any local agency within the State of
California having received a rating of "A" or better by at least two
NRSROs. Obliqations eligible for investment under this subdivision with
maturities under one year must be rated at least "A-1," its equivalent, or
better by two NRSROs.
J. Registered treasury notes or bonds of any of the other 49 states in
addition to California, including bonds payable solely out of the revenues
from a revenue-producing property owned, controlled, or operated by a
state or by a department, board, agency, or authority of any of the other
49 states, in addition to California. Obligations eligible for investment
under this subdivision must be rated "A" or its equivalent or better by at
least two NRSROs. Obligations eligible for investment under this
subdivision with maturities under cne year must be rated at least "A-1," its
equivalent,or better by two NRSROs.
K. Bankers' acceptances that are drawn on and accepted by a commercial
bank. Eligible bankers' acceptances shall have the highest ranking or the
highest letter and number rating as provided for by at least two NRSROs
and a maximum maturity of 180 days.
L. Commercial paper of "prime" quality of the highest ranking or of the
highest letter and number rating as provided for by at least two NRSROs.
The entity that issues the commercial paper shall meet all of the following
conditions in either paragraph(1)or paragraph(2):
1) The entity meets the following criteria:
a. Is organized and operating in the United States as a general
corporation.
b. Has total assets in excess of five hundred million dollars
($500,000,000).
c. Has debt other than commercial paper, if any, that is rated "A" or
higher,or the equivalent, by at least two NRSROs.
5
EXHIBIT A
2) The entity meets the following criteria:
a. Is organized within the United States as a special purpose
corporation,trust,or limited liability company.
b. Has program wide credit enhancements including, but not limited
to,over collateralization, letters of credit,or surety bond.
c. Has commercial paper that is rated "A-1" or higher, or the
equivalent, by at least two NRSROs.
Eligible commercial paper shall have a maximum maturity of 270 days.
Investments may not represent more than 10% of the outstanding
commercial paper of any single corporate issue.
M. Medium-term corporate notes, defined as all corporate and depository
institution debt securities with a maximum remaining maturity of 5 years or
less, issued by corporations organized and operating within the United
States or by depository institutions licensed by the United States or any
state and operating within the United States. Medium-term corporate
notes shall be rated in a rating category"A"or its equivalent or better by at
least two NRSROs.
N. Supranationals, defined as United States dollar denominated senior
unsecured unsubordinated obligations issued or unconditionally
guaranteed by the International Bank for Reconstruction and Development
(IBRD), International Finance Corporation (IFC), or Inter-American
Development Bank (IADB), with a maximum remaining maturity of five
years or less, and eligible for purchase and sale within the United States.
Investments under this subdivision shall be rated"AAA"or its equivalent or
better by at least two NRSROs.
O. Asset-B eked Securities (ABS). Any mortgage pass-through securi
collateralized mortgage obligation, moMage-backed or other pay-through
bond, equipment lease-back certificate, consumer receivable Dass-
through certificate,or consumer receivable-backed bond of a maximum of
five ears maturity.Securities eligible for investment under this subdivision
shall be issued by an issuer having an"A or its equivalent or better for the
issuer's debt by at least two by NRSROs and rated in a rating category of
"AX or its equivalent or better by at least two NRSROs.
If additional types of securities are approved for investment of public funds by the
California Government Code,they will not be eligible for investment by the City of
San Juan Capistrano until this Investment Policy is amended and the
amendment is passed by the City Council.
VIII. DIVERSIFICATION AND MATURITY
A. It is the policy of the City to diversify its investment portfolio. Invested
funds shall be diversified to minimize the risk of loss resulting from over
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EXHIBIT A
concentration of assets in a specific maturity, specific issuer, or specific
class of securities. Diversification strategies shall be established and
periodically reviewed by the City Treasurer and City Manager. The
minimum diversification standards by security type and issuer shall be:
U.S.Treasuries and securities having principal and interest
guaranteed by the U.S.Government..............................................................100%
U.S. Government agencies, instrumentalities and government
Sponsored enterprises.........................................................no more than 75100%
Non-negotiable CDs...................................................................no more than 25%
Negotiable CDs.......................................................................... no more than 30%
Money market funds................................................................... no more than 20%
Local Agency Investment Funds(LAIF)...............................no more than 40100%
Orange County Investment Pool................................................ no more than 40%
Local government investment pools(LGIPs) ............................ no more than 40%
Passbook Savings Account Demand Deposit..............................no more than 5%
Municipal obligations..................................................................no more than 25%
Bankers' acceptances.....................................................,.......... no more than 30%
Commercial paper...................................................................... no more than 25%
Medium-term corporate notes.................................................... no more than 30%
International Bank for Reconstruction and Development
(IBRD), International Finance Corporation(IFC),and
Inter-American Development Bank (IADB) (Supranationals) no more than 15%
Asset-Backed Securities.................. no more than 20%
No more than 5% of the City's investment portfolio may be invested in the
securities of any one issuer regardless of security type excluding U.S.
Treasuries, U.S. Government agencies, Supranationals, and pooled investments
such as LAIF, LGIPs, and money market funds.
B. The City shall not invest in a security whose maturity exceeds five years
from the date of purchase unless City Council has provided approval for a
specific purpose at least 90 days before the investment is made.
C The City Treasurer shall be required to diversify maturities. The City
Treasurer, to the extent possible, will attempt to match investments with
anticipated cash flow requirements. Matching maturities with cash flow
dates will reduce the need to sell securities prior to maturity,thus reducing
market risk. Unless matched to a specific requirement, the City Treasurer
may not invest more than 25% of the portfolio for a period greater than
three years.When matched to a specific requirement and with approval by
the Council, the City Treasurer may invest more than 25% of the portfolio
for a period greater than three years.
IX. AUTHORIZED FINANCIAL DEALERS AND INSTITUTIONS
The City Treasurer will maintain a list of financial dealers and institutions qualified
7
EXHIBIT A
and authorized to transact business with the City.
The purchase by the City of any investment other than those purchased directly
from the issuer,will be purchased either from an institution licensed by the State
as a broker-dealer, as defined in Section 25004 of the Corporations Code, which
is a member of the Financial Industry Regulatory Authority(FINRA), or a member
of a federally regulated securities exchange, a national or state chartered bank, a
federal or state association (as defined by Section 5102 of the Financial Code),
or a brokerage firm designated as a Primary Government Dealer by the Federal
Reserve Bank.
The City Treasurer will investigate all institutions that wish to do business with
the City to determine if they are adequately capitalized, make markets in
securities appropriate for the City's needs, and agree to abide by the conditions
set forth in this City's Investment Policy and any other guidelines that may be
provided.This will be done annually by having the financial institutions:
1. Provide written notification that they have read, and will abide by, the
City's Investment Policy.
2. Submit their most recent audited Financial Statement within 120 days of
the institution's fiscal year end.
If the City has an investment advisor, the investment advisor may use its own list
of authorized broker/dealers to conduct transactions on behalf of the City.
Purchase and sale of securities will be made on the basis of competitive bids and
offers with a minimum of three quotes being obtained.
X. INVESTMENT POOLS
The City Treasurer will perform an annual review of the investment policy and
portfolio of any investment pools in which the City invests, including LAIF, the
Orange County Investment Pool, and LGIPs.
XI. SAFEKEEPING/CUSTODY AND COLLATERALIZATION
A. All security transactions entered into by the City shall be conducted on a
delivery versus payment(DVP)basis.
B. Where applicable, all securities shall be held by a third-party bank
custodian designated by the City Treasurer. The third-party custodian
shall be required to issue a safekeeping receipt to the City listing the
specific instrument, rate, maturity and other pertinent information.The only
exception to the foregoing shall be depository accounts and securities
purchases made with: (i) LAIF and local government investment pools; (ii)
placement certificates of deposit, and, (iii) money market mutual funds,
8
EXHIBIT A
since the purchased securities are not deliverable. Evidence of each these
investments will be held by the City Treasurer.
C. Collateralization on bank deposits (including Certificates of Deposit and
Passbook Savings Account Demand Deposit) shall be required in
accordance with state law.
XII. REPORTING
A. The City Treasurer shall make a monthly report of investment transactions
and holdings to the City Council.
B. If the City has an investment advisor, the investment advisor shall
periodically report o guaftr��,.^,d„fu,^�9�ear a d-basis on the activity
and results of the funds being managed by the investment advisor.
C. The City Treasurer shall include a report on investment holdings a4vity-in
the City's Comprehensive Annual Financial Report as required by
generally accepted accounting principles (GAAP) and the Governmental
Accounting Standards Board(GASB).
XIII. PERFORMANCE EVALUATION
The City shall establish an appropriate performance benchmark and compare the
total return of its investment portfolio to the total return of the benchmark.
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XV. INVESTMENT POLICY ADOPTION
The City's Investment Policy shall be reviewed annually. Any recommended
modifications shall be reviewed and approved by the City Council.
XVI. GLOSSARY
A glossary of financial terms referenced herein is appended. See Exhibit A.
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EXHIBIT A