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010808 CC Agenda
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the office of the City Clerk (951) 694-6444. Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [28 CFR 35.102.35.104 ADA Title 11] AGENDA TEMECULA CITY COUNCIL A REGULAR MEETING CITY COUNCIL CHAMBERS 43200 BUSINESS PARK DRIVE JANUARY 8, 2008 - 7:00 PM At approximately 9:45 P.M., the City Council will determine which of the remaining agenda items can be considered and acted upon prior to 10:00 P.M. and may continue all other items on which additional time is required until a future meeting. All meetings are scheduled to end at 10:00 P.M. 6:15 P.M. - Closed Session of the City Council/Redevelopment Agency pursuant to Government Code Section: Conference with City Attorney pursuant to Government Code Section 54956.9(a) with respect to one matter of pending litigation to which the City is a defendant/respondent and one claim. The title of the litigation is Marina Landscape Inc. v. Douglas E. Barnhart, City of Temecula et al. Riverside County Superior Court Case No. RIC 476659 and the Claim of Douglas E. Barnhart, Inc. (Birdsall Sports Park Construction Litigation). Public Information concerning existing litigation between the City and various parties may be acquired by reviewing the public documents held by the City Clerk. Next in Order: Ordinance: 08-01 Resolution: 08-01 CALL TO ORDER: Mayor Mike Naggar Prelude Music: Michael Hamrin, Flutist and JoAnn Algier, Pianist Invocation: Pastor Jay Cartwright of True Vine Pentecostal Church Flag Salute: Council Member Comerchero ROLL CALL: Comerchero, Edwards, Roberts, Washington, Naggar PRESENTATIONS/PROCLAMATIONS Service Pin Awards PUBLIC COMMENTS A total of 30 minutes is provided so members of the public may address the Council on items that appear within the Consent Calendar or ones that are not listed on the agenda Speakers are limited to two (2) minutes each. If you desire to speak to the Council on an item which is listed on the Consent Calendar or a matter not listed on the agenda, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all Public Hearing or Council Business matters on the agenda, a "Request to Speak" form must be filed with the City Clerk prior to the Council addressing that item. There is a five minute (5) time limit for individual speakers CITY COUNCIL REPORTS Reports by the members of the City Council on matters not on the agenda will be made at this time. A total, not to exceed, ten (10) minutes will be devoted to these reports CONSENT CALENDAR NOTICE TO THE PUBLIC All matters listed under Consent Calendar are considered to be routine and all will be enacted by one roll call vote. There will be no discussion of these items unless Members of the City Council request specific items be removed from the Consent Calendar for separate action 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of November 27, 2007; 2.2 Approve the minutes of December 11, 2007. 3 List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 City Treasurer's Report as of November 30, 2007 RECOMMENDATION: 4.1 Approve and file the City Treasurer's Report as of November 30, 2007. 5 Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended June 30, 2007 RECOMMENDATION: 5.1 Approve the Comprehensive Annual Financial Statements, Auditor's Report, and Management's Discussion and Analysis (MD&A) for Fiscal Year Ended June 30, 2007. 6 Community Development Block Grant Application Proposals for FY 2008-09 RECOMMENDATION: 6.1 Approve the Community Development Block Grant (CDBG) Finance Committee funding recommendations for fiscal year 2008/09; 6.2 Authorize the Mayor to execute the fiscal year 2006/07 Amendment to Supplemental Agreement for the Use of Community Block Grant Funds for the Temecula Community Pantry in the amount of $150,000; 6.3 Authorize the City Manager to reprogram CDBG funds in accordance with the current budget resolution for general administration, and to reprogram CDBG funds from the Old Town Gymnasium project to the Temecula Community Center Expansion project in the amount of $758,311, and to the Temecula Community Pantry project (Escallier house and barn rehab) in the amount of $400,000. 7 Completion and Acceptance for the Architectural Enhancement Panels on the southerly side of the Overland Drive Bridge over Interstate 15 - Protect No. PW05-09 RECOMMENDATION: 7.1 Accept the construction of the Architectural Enhancement Panels on Southerly Side Overland Drive Bridge Over Interstate 15 - Project No. PW05-09, as complete; 7.2 Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond, and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount; 7.3 Release the Materials and Labor Bond seven (7) months after filing of the Notice of Completion, if no liens have been filed. RECOMMENDATION: 8.1 Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Aquiport/Amsdell III, LLC, a Delaware limited liability company ("Aquiport/Amsdell"), for the purchase of an approximate 3,529 square foot permanent easement on property located at 44618 and 44700 Pechanga Parkway, Temecula (APN 961-010-009 and 961-010-047) for the widening of Pechanga Parkway at a purchase price of $90,000 plus escrow fees; 8.2 Authorize the City Manager to execute the Purchase and Sale Agreement in the amount of $90,000 to cover the cost of the easement plus the associated escrow fees not to exceed $2,000.00, approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. 9 YMCA Groud Lease Amendment RECOMMENDATION: 9.1 Approve the First Amendment to the YMCA Ground Lease. 10 RECOMMENDATION: 10.1 Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY STREET CLOSURE OF MAIN STREET BETWEEN OLD TOWN FRONT STREET AND THE EAST SIDE OF THE CHILDREN'S MUSEUM DRIVEWAY ENTRANCE FOR THE "GOSPEL & ARTS FESTIVAL" EVENT SCHEDULED FOR SEPTEMBER 27, 2008 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURE Edwards and Council Member Chuck Washington, and Delegate Authority to Issue a Special Events/Street Closures Permit to the Director of Public Works 11 Press Inquiries - Press Enterprise (at the request of Council Member Roberts) RECOMMENDATION: 11.1 Direct City staff to require all press inquiries from the Press Enterprise newspaper be submitted in writing to the City Council and City staff. Further, City staff will commit to respond in writing to all Press Enterprise inquires in a timely, efficient and professional manner to ensure the accuracy and effective flow of communication. 12 Second Reading of Ordinance No. 07-20 RECOMMENDATION: 12.1 Adopt an Ordinance entitled: ORDINANCE NO. 07-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AMENDING THE TEMECULA REDEVELOPMENT PLAN 1-1988 PURSUANT TO THE PROVISIONS OF HEALTH AND SAFETY CODE SECTION 33333.6 TO REPEAL THE TIME LIMIT ON THE ESTABLISHMENT OF LOANS, ADVANCES, AND INDEBTEDNESS 13 Second Reading of Ordinance No. 07-21 RECOMMENDATION: 13.1 Adopt an Ordinance entitled: ORDINANCE NO. 07-21 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AS REQUIRED BY SB53, CONFIRMING THAT THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES NOT HAVE THE AUTHORITY TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN TEMECULA COMMUNITY SERVICES DISTRICT MEETING CSD PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Board of Directors on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record. CSD CONSENT CALENDAR 14 Minutes RECOMMENDATION: 14.1 Approve the minutes of December 11, 2007. CSD DIRECTOR OF COMMUNITY SERVICES REPORT CSD GENERAL MANAGERS REPORT CSD BOARD OF DIRECTORS REPORTS CSD ADJOURNMENT TEMECULA REDEVELOPMENT AGENCY MEETING RDA PUBLIC COMMENTS A total of 15 minutes is provided so members of the public may address the Redevelopment Agency on items that are not listed on the agenda or on the Consent Calendar. Speakers are limited to two (2) minutes each. If you decide to speak to the Board of Directors on an item not on the agenda or on the Consent Calendar, a pink "Request to Speak" form should be filled out and filed with the City Clerk. When you are called to speak, please come forward and state your name for the record. For all other agenda items, a "Request to Speak" form must be filed with the City Clerk Prior to the Board of Directors addressing that item. There is a five (5) minute time limit for individual speakers. Anyone wishing to address the Board of Directors should present a completed pink "Request to Speak" form to the City Clerk. When you are called to speak, please come forward and state your name and address for the record RDA CONSENT CALENDAR 15 Minutes RECOMMENDATION: 15.1 Approve the minutes of December 11, 2007 16 Component Unit Financial Statements for Fiscal Year Ended June 30, 2007 RECOMMENDATION: 16.1 Approve the Temecula Redevelopment Agency Component Unit Financial Statements for Fiscal Year Ended June 30, 2007. RDA EXECUTIVE DIRECTORS REPORT RDA AGENCY MEMBERS REPORTS RDA ADJOURNMENT RECONVENE TEMECULA CITY COUNCIL PUBLIC HEARING Any person may submit written comments to the City Council before a public hearing or may appear and be heard in support of or in opposition to the approval of the project(s) at the time of the hearing. If you challenge any of the project(s) in court, you may be limited to raising only those issues you or someone else raised at the public hearing or in written correspondence delivered to the City Clerk at, or prior to, the public hearing 17 Weed Abatement Lien Resolution for FY 2007-2008 RECOMMENDATION: 17.1 Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENT AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF HAZARDOUS VEGETATION FOR THE FISCAL YEAR 2007-2008 18 Abatement Lien Resolution for FY 2007-2008 RECOMMENDATION: 18.1 Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF A BEE HIVE AND DRAINING OF TWO GREEN POOLS FOR THE FISCAL YEAR 2007-2008 19 Addition of Water Quality Management Plan (WQMP) Fees to the Citywide User Fee Schedule RECOMMENDATION: 19.1 Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING WATER QUALITY MANAGEMENT PLAN (WQMP) FEES TO THE CITYWIDE USER FEE SCHEDULE CITY MANAGER REPORT CITY ATTORNEY REPORT ADJOURNMENT Next regular meeting: City Council Regular, Tuesday, January 22, 2008, at 5:30 P.M., for a Closed Session, with regular session commencing at 7:00 PM, City Council Chambers, 43200 Business Park Drive, Temecula, California. PROCLAMATIONS AND PRESENTATIONS CONSENT CALENDAR ITEM NO. 1 ITEM NO. 2 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL NOVEMBER 27, 2007 The City Council convened in Closed Session at 6:00 p.m. and its regular meeting commenced at 7:00 p.m., on Tuesday, November 27, 2007, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: Council Members: Edwards, Naggar, and Mayor Washington Absent: Council Members: Comerchero and Roberts. PRELUDE MUSIC The prelude music was provided by Al Ball and Carolyn Lechusza Aquallo. INVOCATION The invocation was provided by Rabbi Hurwitz of Chabad of Temecula Valley. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Council Member Edwards. PRESENTATIONS/PROCLAMATIONS Certificate of Achievement presented to Jasen Knight and Jeremy Duhe' for attaining the rank of Eagle Scout Commending Jasen Knight of Troop #301 and Jeremy Duhe' of Troop #309 for achieving rank of Eagle Scout, Mayor Washington presented them with a Certificate of Achievement as well as the City's Eagle Scout pin. Certificate of Appreciation to Paul Jacobs for his service on the Public/Traffic Safety On behalf of the City Council Members, Mayor Washington presented Mr. Paul Jacobs with a Certificate of Appreciation for his many contributions in serving as a Public Traffic Safety Commissioner. Accepting the Certificate of Appreciation, Mr. Paul Jacobs thanked the City Council for the recognition and stated that it has been his honor to have served on the Public Traffic Safety Commission. Certificate of Appreciation to Jack Henz for his service on the Community Services Commission Thanking Mr. Jack Henz for his 12 years of service and dedication, Mayor Washington honored him with a Certificate of Appreciation. Relaying that it has been his joy and pleasure working as a Commissioner on the Community Services Commission, Mr. Henz thanked the Council and the Community Services Department for the Certificate of Appreciation. R AM i n utes1112707 Municipal Information Systems Association in California (MISAC) Award for Excellence in Information Technology Practices Mr. Ken Desforges, representing the City of Diamond Director Thorson the MISAC Award of Excellence in excelling in creative and efficient uses of resources it local government standards in the areas of stratec operations, customer satisfaction, internet, project mar and recovery, and policies and procedures. Bar, presented to Information Systems Information Technology Practices for local governments and for exceeding is planning and budget, purchasing, agement, training, disaster preparation Thanking Mr. Desforges and the City Council for the recognition, Director of Information Systems Thorson introduced and extended appreciation to his staff. PUBLIC COMMENT A. Ms. Tammy Wilson, Ms. Stacey Daniels, and Charlene Fort, representing the Temecula Gospel Arts Festival, introduced Lady Tramaine Hawkins. B. Lady Tramaine Hawkins, representing Lady Tramaine Hawkins Ministries, spoke regarding an upcoming Gospel Festival to be held in Old Town. C. Mr. Jimmy Moore and Ms. Luanne Ferrer, representing the Temecula Valley Music Society, spoke regarding upcoming events at the Old Town Temecula Community Theater. D. Ms. Peg Moore and Mr. Jimmy Moore, Temecula, thanked the City Council and past City Council members for creating such a fine City and wished the City of Temecula a Happy 18th Birthday. CITY COUNCIL REPORTS A. Mayor Pro Tom Naggar informed the Council Members that the Vail Family would be willing to allow the City of Temecula to display collected memorabilia of Walter Vail (founder of the region) at the Temecula Valley Museum if the City were to preserve the items using standard museum practices; therefore, Mr. Naggar requested that this matter be readdressed by the City Council at an upcoming Council meeting. Mayor Pro Tom Naggar invited the public to attend a Regional Medical Facility Symposium Meeting to be held in the City Council Chambers at City Hall on Monday, December 10, 2007, at 6:00 p.m. B. Speaking on the importance of uniting organizations and entities that provide services to the homeless and low-income families, Council Member Edwards advised of an upcoming meeting in early 2008 to discuss bringing these types of organizations together in order to work on a closer scale. C. Referencing the Public Utilities Commission, Mayor Washington updated the community with regard to rates and charges, and suggested that the City Council and staff continue to pursue a lower rate and charge with the Public Utilities Commission. R AM i n utes1112707 CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of October 23, 2007. 3 List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 07-96 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A 4 2007-08 Community Service Funding Program RECOMMENDATION: 4.1 Review and approve the 2007-08 Community Service Funding Program grants pursuant to the attached spreadsheet outlining the Ad Hoc Subcommittee's recommendations of $112,000 to 36 organizations. (Item No. 4 was pulled for separate discussion; see pages 7 and 8.) 5 Liability Insurance Renewal RECOMMENDATION: 5.1 Approve the insurance policy renewal for general and excess liability insurance with St. Paul Travelers Insurance Company and Princeton Excess Insurance Company in the amount of $221,445, for the period of December 1, 2007 through December 1. 2008. RAMinutes1112707 3 6 Purchase of Handheld Traffic Citation Devices, DUI and Collision Handheld Reporting Softwa re RECOMMENDATION: 6.1 Approve the Purchase and Installation Agreement with Crossroads Software Inc. in the amount of $52,429.15 to purchase handheld traffic citation devices and to purchase and implement DUI and Collision Reporting Software for Handhelds. 6.2 Authorize the City Manager to approve additional work up to 10% of the amount of the Agreement, not to exceed a total amount of $5,242.92. 7 Declaration Terminating the Local State of Emergency RECOMMENDATION: 7.1 Adopt a resolution entitled: RESOLUTION NO. 07-97 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING THE TERMINATION OF THE LOCAL STATE OF EMERGENCY THAT HAD BEEN DECLARED ON OCTOBER 23, 2007 BY RESOLUTION NO. 07-91 8 Purchase and Sale Agreement for certain property rights on property located at 44975 Trotsdale Drive, Temecula RECOMMENDATION: 8.1 Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Mike and Beverly Siow, for the purchase of an approximate 2,847 square foot permanent easement on property located at 44975 Trotsdale, Temecula (APN 961-042-004) for the widening of Pechanga Parkway at a purchase price of $9,000 plus escrow fees; 8.2 Authorize the City Manager to execute the Purchase and Sale Agreement in the amount of $9,000 to cover the cost of the easement plus the associated escrow fees not to exceed $1,500.00, approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. 9 Purchase and Sale Agreement for certain property rights on property located at 45009 Muirfield Drive, Temecula RECOMMENDATION: 9.1 Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Stephen Sweatt and Andrea Loworn, for the purchase of an approximate 2,710 square foot permanent easement and 333 square feet to be acquired in fee on property located at 45009 Muirfield Drive, Temecula (APN 961-042-001) for the widening of Pechanga Parkway at a purchase price of $12,000 plus escrow fees; R AM i n utes1112707 9.2 Authorize the City Manager to execute the Purchase and Sale Agreement in the amount of $12,000 to cover the cost of the easements plus the associated escrow fees not to exceed $2,000.00., approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. 10 RECOMMENDATION: 10.1 Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Rueben and Jennifer Calixto, Trustees of the Calixto Family 2003 Trust, for the purchase of an approximate 37,627 square foot grading easement plus improvements , for the proposed improvements to Butterfield Stage Road, and an approximate 4,250 square easement area consisting of an approximate 2,750 square foot area for grading and an approximate 1,500 square foot area for temporary construction purposes for the proposed improvements to Rancho California Road east of Butterfield Stage Road on the real property commonly known as 41351 Armada Place, Temecula, at a purchase price of $1,200,000 plus escrow fees; 10.2 Authorize an advance of General Fund Reserves in the total amount of $1,215,000 to cover the cost of the property interests plus the associated escrow fees; 10.3 Authorize the City Manager to execute the Purchase and Sale Agreement, approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. (Per the request of the City Attorney, Item No. 10 will be continued to January 8, 2008.) 11 RECOMMENDATION: 11.1 Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Temecula Creek RV Storage, for the purchase of an approximate 3,342 square foot permanent easement and an approximate 14,980 square foot temporary construction easement on property located at 44526 and 44584 Pechanga Parkway, Temecula (APN 961-010-024) for the widening of Pechanga Parkway at a purchase price of $130,000 plus escrow fees; 11.2 Authorize the City Manager to execute the Purchase and Sale Agreement in the amount of $130,000 to cover the cost of the easements plus the associated escrow fees not to exceed $3,500.00., approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. R AM i n utes1112707 12 December 7, 2007 and delegate authority to issue a Special Events/Street Closures Permit to the Director of Public Works RECOMMENDATION: 12.1 Adopt a resolution entitled: RESOLUTION NO. 07-98 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY STREET CLOSURE OF MAIN STREET BETWEEN OLD TOWN FRONT STREET AND THE WESTERLY END OF THE MAIN STREET BRIDGE FOR THE "WINTER WONDERLAND" EVENT SCHEDULED FOR DECEMBER 7, 2007 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES 13 Seventh Amendment to agreement for Environmental Engineering Services for the Pechanga Parkway Phase II Street Improvements - Protect No. PW99-11 RECOMMENDATION: 13.1 Approve the Seventh Amendment to the Agreement with Michael Brandman Associates in an amount not to exceed $9,100.00 for additional services necessary to complete an update to the Habitat Mitigation and Monitoring Plan (HMMP) for the Pechanga Parkway Phase II Street Improvements, Project No. PW99-11; 13.2 Authorize the Mayor to execute the amendment. 14 Seventh Amendment for Consultant Services for French Valley Parkway/Interstate-15 Overcrossing and Interchange Improvements - Protect No. PVV02-11 RECOMMENDATION: 14.1 Approve the Seventh Amendment to the consultant agreement with Moffatt & Nichol Engineers in an amount not to exceed $14,573.36 for additional services necessary to complete the Project Report and Environmental Document for the French Valley Parkway/Interstate-15 Over-Crossing and Interchange Improvements - Project No. PW02-11; 14.2 Authorize the Mayor to execute the amendment to the agreement. R AM i n utes1112707 15 Improvements Plans - PW06-07 RECOMMENDATION: 15.1 Adopt a resolution entitled: RESOLUTION NO. 07-99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA APPROVING THE PLANS AND SPECIFICATIONS FOR THE OLD TOWN INFRASTRUCTURE PROJECT AND AUTHORIZING THE SOLICITATION OF CONSTRUCTION BIDS (TOWN SQUARE AND MERCEDES AND MAIN STREET IMPROVEMENT PLANS, PW06-07) 16 Continuance of the 2007 Building Code Amendment RECOMMENDATION: 16.1 Continue the proposed 2007 Building Code Amendment Adoption to the December 11, 2007 Public Hearing Meeting. MOTION: Mayor Pro Tem Naggar moved to approve Item Nos. 1-3, 5-9 and 11-16 of the Consent Calendar (Item No. 4 was pulled for separate discussion and Item No. 10 was pulled off calendar.). Council Member Edwards seconded the motion and electronic vote reflected approval with the exception of Council Members Comerchero and Roberts who were both absent. 4 2007-08 Community Service Funding Program RECOMMENDATION: 4.1 Review and approve the 2007-08 Community Service Funding Program grants pursuant to the attached spreadsheet of outlining the Ad Hoc Subcommittee's recommendations of $112,000 to 36 organizations. Referencing Consent Calendar Item No. 4, City Attorney Thorson advised that if any City Council Members were on the Board of Directors of the 36 organizations proposed by staff, it would be necessary to abstain. In response to City Attorney Thorson's comment and due to a lack of quorum, it was the consensus of the City Council to continue No. 29 (Music Heritage, Inc.) to the December 11, 2007, City Council Meeting. MOTION: Mayor Pro Tern Naggar moved to approve Consent Calendar Item No. 4 with the exception of No. 29 (Music Heritage, Inc.). Council Member Edwards seconded the motion and electronic vote reflected approval with the exception of Council Members Roberts and Comerchero who were both absent. Director of Finance Roberts provided a staff report (of written material) and advised that the City allocated $112,000 through the process and noted that if no changes were made to the proposed recommendation, $8,000 would remain available for future allocations. RAMinutes1112707 At this time, the public hearing was opened. A. Mr. James Joyce, Temecula, relayed his strong support of the 36 organizations being considered by the City Council. B. Ms. Alicia Wilkins, Temecula, representing Planned Parenthood, requested the removal of funding for Birth Choice from the Community Services Funding Program; stated that Birth Choice does not provide services to the women of Temecula; noted that Birth Choice is not a clinic staffed by medical professionals; and viewed that Birth Choice does not protect the interest of women's health. C. Ms. Chris Pedersen, Temecula, spoke in support of Birth Choice and noted that funding should not be removed from the Community Services Funding Program. At this time, the public hearing was closed. Commenting on the Food Pantry, Mayor Pro Tern Naggar requested that the City Council consider allocating $2,500 versus the proposed $2,000. Although individuals may have their opinion of Birth Choice and/or Planned Parenthood, he would not be in favor of removing funding for Birth Choice from the Community Services Funding Program. Council Member Edwards spoke in favor of the Community Services Funding Program as well as Birth Choice and requested that the proposed funding of $2,000 for the Geological Society be increased to $5,000. In response to Mayor Washington, Director of Finance Roberts noted that Planned Parenthood had not submitted a grant application and briefly itemized the services that would be provided by Birth Choice. City Manager Nelson advised that all funded applications meet the criteria established by the City through its Community Services Funding Program. MOTION: Mayor Pro Tern Naggar moved to approve staff recommendation with increasing the allocation to the Geological Society to $5,000 and the allocation to the Food Pantry to $2,500. Council Member Edwards seconded the motion and electronic vote reflected approval with the exception of Council Member Comerchero and Council Member Roberts who were both absent. At 8:09 p.m., the City Council convened as the Temecula Community Services District and the Redevelopment Agency. At 8:13 p.m., the City Council resumed with regular business. RAMinutes1112707 PUBLIC HEARING 24 Amendment of the California Fire Code RECOMMENDATION: 24.1 Adopt an Ordinance entitled: ORDINANCE NO. 07-16 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING BY REFERENCE THE 2007 EDITION OF THE CALIFORNIA FIRE CODE, INCORPORATING THE 2006 INTERNATIONAL FIRE CODE, TOGETHER WITH CERTAIN DELETIONS AND MODIFICATIONS, AND AMENDING TITLE 15 OF THE TEMECULA MUNICIPAL CODE 24.2 Adopt a Resolution entitled: RESOLUTION NO. 07-100 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING EXPRESS FINDINGS AND DETERMINATIONS THAT MODIFICATIONS TO THE CALIFORNIA FIRE CODE, 2007 EDITION, ARE REASONABLY NECESSARY BECAUSE OF LOCAL CLIMATIC, GEOLOGICAL AND/OR TOPOGRAPHICAL CONDITIONS Captain/Fire Marshal Dakin provided a staff report (as per agenda material). At this time, the public hearing was opened and due to no speakers, it was closed. City Attorney Thorson advised that because Ordinance No. 07-16 was previously introduced, it would not have to be read into the record nor reintroduced at this time. MOTION: Mayor Pro Tem Naggar moved to approve Item No. 24.1 and 24.2. Council Member Edwards seconded the motion and electronic vote reflected with the exception of Council Members Roberts and Comerchero who were both absent. CITY COUNCIL BUSINESS 25 Adoption of Ordinance Lewina Special Taxes within Communitv Facilities District 88-12 RECOMMENDATION: 25.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA LEVYING SPECIAL TAXES WITHIN COMMUNITY FACILITIES DISTRICT NO. 88-12 OF THE CITY OF TEMECULA (YNEZ CORRIDOR) Director of Finance Roberts provided a staff report (of written material). R AM i n utes1112707 Council Member Edwards clarified that the proposed action would not be to impose a new tax and that this tax is currently being collected. For the record, City Attorney Thorson clarified that the tax has been in place since the formation of the District and was voted on by the property owners. At this time, City Attorney Thorson introduced and read by title only Ordinance 07-18. MOTION: Mayor Pro Tern Naggar moved to approve staff recommendation. Council Member Edwards seconded the motion and electronic vote reflected approval with the exception of Council Member Roberts and Council Member Comerchero who were both absent. DEPARTMENTAL REPORTS 26 Planning Department Monthly Report 27 Economic Development Department Monthly Report 28 Police Department Monthly Report 29 Public Works Department Monthly Report 30 City Council Travel/Conference Monthly Report CITY MANAGER REPORT No report at this time. CITY ATTORNEY REPORT With respect to Closed Session, City Attorney Thorson stated that with respect to the Water Park litigation (Item No. 1), the City Council voted unanimously 3-0 to not appeal the trial court decision; and that it would be expected that the owner of the property will return with a request to proceed with an Environmental Impact Report (EIR). City Attorney Thorson also advised that there was no action taken on the Diaz Road property (Item No. 2), and will be addressed in January 2008. RAMinutes1112707 10 ADJOURNMENT At 8:18 p.m. the City Council meeting was formally adjourned to Tuesday, December 11, 2007, at 5:30 p.m. for a Closed Session, with regular session commencing at 7:00 p.m. City Council Chambers, 43200 Business Park Drive, Temecula, California. Chuck Washington, Mayor ATTEST: Susan W. Jones, CIVIC City Clerk [SEAL] R AMi n utest112707 11 MINUTES OF A REGULAR MEETING OF THE TEMECULA CITY COUNCIL DECEMBER 11, 2007 The City Council convened in Closed Session at 6:15 p.m. and its regular meeting commenced at 7:00 p.m., on Tuesday, December 11, 2007, in the City Council Chambers of Temecula City Hall, 43200 Business Park Drive, Temecula, California. Present: Council Members: Comerchero, Edwards, Naggar, Roberts, and Mayor Washington Absent: Council Members: None. PRELUDE MUSIC The prelude music was provided by The Heritage Youth and Beginning Ensembles. INVOCATION The invocation was provided by Pastor Leon Franklin of Living Word Church. PLEDGE OF ALLEGIANCE The pledge of allegiance was presented by Mayor Pro Tern Naggar. PRESENTATIONS/PROCLAMATIONS Temecula Valley Soccer Association Day Thanking Temecula Valley Soccer Association (TVSA) for providing youth soccer programs in the Temecula Valley, Mayor Washington proclaimed December 12, 2007, to be Temecula Valley Soccer Association Day. Representatives of the Temecula Valley Soccer Association thanked the City for its recognition. Proclamation for Coach Bud Kane Honoring Coach Bud Kane for being an inspirational leader and positive influence to students through the years, Mayor Washington on behalf of the City Council, proclaimed December 11, 2007, to be Bud Kane Day. Coach Kane thanked the City Council for its recognition. In appreciation for her many years of providing prelude music at City Council meetings, Mayor Washington presented Ms. Eve Craig with flowers. Ms. Craig thanked the City Council for the flowers and wished everyone a Merry Christmas and Happy New Year. RAMinutes1121107 PUBLIC COMMENT A. Ms. Ablia Miller, Temecula, spoke regarding the concerns of global warming and encouraged Temecula residents to ride the bus. CITY COUNCIL REPORTS A. Thanking those who sent well wishes and flowers during the time of his surgery and recovery, Council Member Roberts commented on the excellent care he had received at Regional Medical Center, and noted that he will be discussing issues the medical center is facing with the Third District. B. Council Member Comerchero welcomed Council Member Roberts back to the dais. Relaying the success of the Winter Wonderland event held at the Children's Museum, Council Member Comerchero thanked staff for its efforts in implementing the event. Council Member Comerchero also provided a brief update with respect to Consent Calendar Item No. 16 regarding WRCOG's efforts to facilitate Electrical Rates, and advised Temecula residents that staff is currently working to facilitate better emergency communication and will provide more information in the future. C. Reflecting on the past year as Mayor, Mayor Washington commended his colleagues; his wife, Cathy; staff members at First Centennial Bank; and staff for a great year. CONSENT CALENDAR 1 Standard Ordinance and Resolution Adoption Procedure RECOMMENDATION: 1.1 Motion to waive the reading of the text of all ordinances and resolutions included in the agenda. 2 Minutes RECOMMENDATION: 2.1 Approve the minutes of November 6, 2007. (Council Member Comerchero abstained from this item.) 3 List of Demands RECOMMENDATION: 3.1 Adopt a resolution entitled: RESOLUTION NO. 07-101 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A RAMinutes1121107 2 4 Financial Statements for the Three Months Ended September 30, 2007 RECOMMENDATION: 4.1 Receive and file the Financial Statements for the three months ended September 30, 2007. 5 City Treasurer's Report as of October 31, 2007 RECOMMENDATION: 5.1 Approve and file the City Treasurer's Report as of October 31, 2007. 6 City of Temecula Proposed Certificates of Participation - Designation of Consultants RECOMMENDATION: 6.1 Adopt a resolution entitled: RESOLUTION NO. 07-102 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DESIGNATING CONSULTANTS IN CONNECTION WITH THE PROPOSED EXECUTION AND DELIVERY OF CERTIFICATES OF PARTICIPATION TO FINANCE A PORTION OF THE CONSTRUCTION OF A NEW CIVIC CENTER FACILITY AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT THERETO 7 Extension of Contract for Union Bank Banking Services RECOMMENDATION: 7.1 Approve a five-year extension of the City's contract for banking services with Union Bank of California, N.A.; 7.2 Authorize the City Manager and City Attorney to execute all necessary agreements. 8 FY 2007-08 Community Service Fundinq Program Grant Recommendation to Music Heritage, Inc. RECOMMENDATION: 8.1 Approve the FY 2007-08 Community Service Funding Program grant recommendation to Music Heritage, Inc. in the amount of $4,000. (Mayor Pro Tem Naggar abstained from this item.) 9 Purchase of Police Motorcycles RECOMMENDATION: 9.1 Approve the purchase of one (1) Harley-Davidson FLHP W/ABS from Quaid Harley- Davidson in the amount of $21,920.99; one (1) BMW R1200 RT-P from BMW RAMinutes1121107 3 Motorcycles of North County in the amount of $23,695.73; and, one (1) Honda ST 1300 P from Callaway Motorsports in the amount of $24,177.91. 10 RECOMMENDATION: 10.1 Award a contract with PlanNet Consulting for IS master planning services in the amount of $144,795.00 and authorize the Mayor to execute the contract; 10.2 Authorize the City Manager to approve change orders not to exceed the contingency amount of $14,479.50, which is equal to 10% of the contract amount. 11 Second Amendment to the Professional Services Agreement with LGC Inland, Inc. for Geotechnical and Material Testing Services - Verizon Fiber Optic Project RECOMMENDATION: 11.1 Approve the Second Amendment to the Professional Services Agreement with LGC Inland, Inc. in an amount not to exceed $68,000.00 to provide 16 hours per week of geotechnical & material testing services for the Verizon Fiber Optic Project through June 30, 2008, and authorize the Mayor to execute the Amendment to the Agreement; 11.2 Approve an appropriation of $43,000.00 to the General Fund Land Development Department Budget. 12 Parcel Map No. 30169 - Vernaccia Vineyards RECOMMENDATION: 12.1 Approve Parcel Map No. 30169 in conformance with the Conditions of Approval; 12.2 Approve the Subdivision Improvement Agreement and accept the Faithful Performance and Labor and Materials Bonds as security for the agreement; 12.3 Approve the Subdivision Monument Agreement and accept the Monument Bond as security for the agreement. 13 Eighth Amendment to the Consulting Agreement with Moffat & Nichol Engineers for French Valley Parkway/Interstate 15 Overcrossing and Interchange Improvements - Proiect No. PW02-11 RECOMMENDATION: 13.1 Approve the Eighth Amendment to the consulting agreement with Moffatt & Nichol Engineers in an amount not to exceed $1,087,300.00 for additional services necessary to provide Utility Support and Potholing for the French Valley Parkway / Interstate-15 Over-Crossing and Interchange Improvements - Project No. PW02-11; and authorize the Mayor to execute the amendment to the agreement; RAMinutes1121107 13.2 Authorize the City Manager to approve Extra Work Authorizations not to exceed the contingency amount which is increased by $108,730.00, which is equal to 10% of the eighth amendment amount. 14 Authorize Temporary Street Closures for Santa's Electric Light Parade on December 14, 2007, and delegate authority to issue Special Events/Street Closures Permit to the Director of Public Works RECOMMENDATION: 14.1 Adopt a resolution entitled: RESOLUTION NO. 07-103 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING TEMPORARY STREET CLOSURES FOR JEFFERSON AVENUE AND ABUTTING STREETS FROM RANCHO CALIFORNIA ROAD TO OVERLAND DRIVE AND ALSO THE LOW FLOW CROSSING AT VIA MONTEZUMA AT DIAZ ROAD FOR SANTA'S ELECTRIC LIGHT PARADE ON DECEMBER 14, 2007 (RESCHEDULED), AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURES 15 Construction of a Reclaimed Water Line on Pechanga Parkway to serve the Pechanga Resort and Casino - at the request of Mayor Pro Tom Naggar RECOMMENDATION 15.1 Receive and file this report. Consent Calendar Item No. 15 was pulled for discussion; see page 6 16 Support VVRCOG's Efforts to Facilitate Electrical Rate Restructuring for the WRCOG Subregion (at the Request of Mayor Washington) RECOMMENDATION: 16.1 Adopt a resolution entitled: RESOLUTION NO. 07-104 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA SUPPORTING WESTERN RIVERSIDE COUNCIL OF GOVERNMENT'S (WRCOG'S) EFFORTS TO FACILITATE ELECTRICAL RATE RESTRUCTURING FOR THE WRCOG SUBREGION WITH THE DEVELOPMENT OF A COUNTER PROPOSAL TO SOUTHERN CALIFORNIA EDISON (SCE) AND/OR LEGISLATIVE CHANGES NEEDED TO ACHIEVE AN EQUITABLE SOLUTION RAMinutes1121107 17 Declaration of Emergency for Drainage Channel behind Temecula Community Recreation Center due to Flooding RECOMMENDATION: 17.1 Adopt a resolution entitled: RESOLUTION NO. 07-105 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA DECLARING THE EXISTENCE OF A LOCAL EMERGENCY UNDER GOVERNMENT CODE SECTION 8630 AND CHAPTER NO. 2.56 OF THE TEMECULA MUNICIPAL CODE 18 Second Reading of Ordinance No. 07-18 RECOMMENDATION: 18.1 Adopt an Ordinance entitled: ORDINANCE NO. 07-18 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA LEVYING SPECIAL TAXES WITHIN COMMUNITY FACILITIES DISTRICT NO. 88-12 OF THE CITY OF TEMECULA (YNEZ CORRIDOR) MOTION: Council Member Comerchero moved to approve Consent Calendar Item Nos. 1-14 and 16-18 and pulled No. 15 for separate discussion. Council Member Edwards seconded the motion and electronic vote reflected approval with the exception of Mayor Pro Tem Naggar who abstained from Item No. 8 and Council Member Roberts who abstained from Item No. 2.1. Consent Calendar Item No. 15 considered under separate discussion 15 RECOMMENDATION 15.2 Receive and file this report. Director of Public Works Hughes provided a staff report (of record) Mayor Pro Tern Naggar thanked the Pechanga Tribal Council for its efforts with respect to this project and requested that staff mail notification letters to surrounding residents as to what the expectations will be for the project. City Manager Nelson relayed the benefits of staff's recommendation and advised that the Public Works Department will be working with the Pechanga Tribe to ensure that adjacent residents are notified of the upcoming construction as well as construction hours. Council Member Comerchero requested that the notification process include the estimated completion date of the project. RAMinutes1121107 MOTION: Council Member Roberts moved to approve Consent Calendar Item No. 15. Mayor Pro Tern Naggar seconded the motion and electronic vote reflected unanimous approval. Mayor Washington updated the public on the City's reverse 911 cell phone notification system. At 8:08 p.m., the City Council convened as the Temecula Community Services District and the Redevelopment Agency. At 8:23 p.m., the City Council resumed with regular business. PUBLIC HEARING 29 AB 1600 Financial Reports RECOMMENDATION: 29.1 Approve the AB 1600 Financial Reports. Assistant Director of Finance Simpson provided a staff report (of record). At this time, the public hearing was opened and due to no speakers, it was closed. MOTION: Mayor Pro Tem Naggar moved to approve staff recommendation. Council Member Comerchero seconded the motion and electronic vote reflected unanimous approval. 30 Amendment of the California Building Codes RECOMMENDATION: 30.1 Adopt an resolution entitled: RESOLUTION NO 07-106 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA MAKING EXPRESS FINDINGS AND DETERMINATIONS THAT MODIFICATIONS TO THE 2007 CALIFORNIA BUILDING, PLUMBING, MECHANICAL AND ELECTRICAL CODES, AS ADOPTED BY THE CITY OF TEMECULA, ARE REASONABLY NECESSARY BECAUSE OF LOCAL CLIMATIC, GEOLOGICAL OR TOPOGRAPHICAL CONDITIONS 30.2 Second reading and adoption of the ordinance introduced November 6, 2007 entitled: ORDINANCE NO. 07-17 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING BY REFERENCE THE 2007 EDITION OF THE CALIFORNIA BUILDING CODE; THE 2007 EDITION OF THE CALIFORNIA MECHANICAL CODE; THE 2007 EDITION OF THE CALIFORNIA PLUMBING CODE; THE 2007 EDITION OF THE CALIFORNIA ELECTRICAL CODE; THE 2007 EDITION OF THE CALIFORNIA ADMINISTRATIVE CODE; AND THE 2007 CALIFORNIA ENERGY CODE, TOGETHER WITH CERTAIN AMENDMENTS AND DELETIONS, AND AMENDING TITLE 15 OF THE TEMECULA MUNICIPAL CODE RAMinutes1121107 30.3 Reading and adoption of the urgency ordinance entitled ORDINANCE NO. 07-19 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADOPTING BY REFERENCE THE 2007 EDITION OF THE CALIFORNIA BUILDING CODE; THE 2007 EDITION OF THE CALIFORNIA MECHANICAL CODE; THE 2007 EDITION OF THE CALIFORNIA PLUMBING CODE; THE 2007 EDITION OF THE CALIFORNIA ELECTRICAL CODE; THE 2007 EDITION OF THE CALIFORNIA ADMINISTRATIVE CODE; AND THE 2007 CALIFORNIA ENERGY CODE, TOGETHER WITH CERTAIN AMENDMENTS AND DELETIONS, AND AMENDING TITLE 15 OF THE TEMECULA MUNICIPAL CODE; AND DECLARING THE URGENCY THEREOF Director of Building and Safety Harold provided a staff report (of written record). At this time, the public hearing was opened and due to no speakers, it was closed. At this time, City Attorney Thorson introduced and read by title only Ordinance 07-19. MOTION: Mayor Pro Tern Naggar moved to approve staff recommendation. Council Member Comerchero seconded the motion and electronic vote reflected unanimous approval. CITY COUNCIL BUSINESS 31 Appointment of Mayor and Mayor Pro Tern for Calendar Year 2008 RECOMMENDATION: 31.1 Entertain motions from the City Council Members to appoint the Mayor to preside, effective January 1, 2008, to the end of Calendar Year 2008; 31.2 Entertain motions from the City Council Members to appoint the Mayor Pro Tem, effective January 1, 2008, who will assume the duties of the Mayor in the Mayor's absence, and hold this office until the end of Calendar Year 2008. The City Council commended Mayor Washington for his leadership and accomplishments for Calendar Year 2007. MOTION: Council Member Comerchero nominated Mayor Pro Tern Naggar to serve as Mayor and Council Member Edwards to serve as Mayor Pro Tern for Calendar Year 2008. Mayor Washington seconded the motion and electronic vote reflected unanimous approval. Mayor Washington reflected on high school and middle school events that he had attended during his year as Mayor. RAMinutest121107 8 32 Amendment of Temecula Redevelopment Plan No. 1-1988 Repealinq the Redevelopment Plan's Time Limit on the Establishment of Loans, Advances and Indebtedness to Finance Redevelopment Plan RECOMMENDATION: 32.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AMENDING THE TEMECULA REDEVELOPMENT PLAN 1-1988 PURSUANT TO THE PROVISIONS OF HEALTH AND SAFETY CODE SECTION 33333.6 TO REPEAL THE TIME LIMIT ON THE ESTABLISHMENT OF LOANS, ADVANCES, AND INDEBTEDNESS City Attorney Thorson provided a staff report (of record). At this time, the public hearing was opened and due to no speakers, it was closed. At this time, City Attorney Thorson introduced and read by title only Ordinance No.07-20. MOTION: Mayor Pro Tem Naggar moved to approve staff recommendation. Council Member Edwards seconded the motion and electronic vote reflected unanimous approval. 33 Ordinance confirming that the Temecula Redevelopment Agency has no Eminent Domain Authority RECOMMENDATION: 33.1 Introduce and read by title only an ordinance entitled: ORDINANCE NO. 07-21 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AS REQUIRED BY SB 53, CONFIRMING THAT THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES NOT HAVE THE AUTHORITY TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN City Attorney Thorson provided a staff report (of written record). At this time, the public hearing was opened and due to no speakers, it was closed. At this time, City Attorney Thorson introduced and read by title only Ordinance No. 07-21. MOTION: Mayor Pro Tem Naggar moved to approve staff recommendation. Council Member Edwards seconded the motion and electronic vote reflected unanimous approval. RAMinutes1121107 DEPARTMENTAL REPORTS No additional comments. CITY MANAGER REPORT City Manager Nelson wished everyone a Merry Christmas and a Happy New Year CITY ATTORNEY REPORT With respect to Closed Session Item No. 1, City Attorney Thorson relayed that the City of Temecula versus Morter Trustees, et. al, the City Council by a 5-0 vote authorized the City Attorney's office to enter into a settlement agreement in the amount of $235,000 for the property and to execute the stipulation for entry of judgment and file order of condemnation and advised that there would be no action to report with respect to Closed Session Item No. 2. ADJOURNMENT At 8:38 p.m. the City Council meeting was formally adjourned to Tuesday, January 8, 2008, at 5:30 p.m. for a Closed Session, with regular session commencing at 7:00 p.m. City Council Chambers, 43200 Business Park Drive, Temecula, California. Chuck Washington, Mayor ATTEST: Susan W. Jones, CIVIC City Clerk [SEAL] RAMinutes1121107 10 ITEM NO. 3 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: January 08, 2008 SUBJECT: List of Demands PREPARED BY: Pascale Brown, Accounting Manager Leah Thomas, Accounting Specialist RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A BACKGROUND: All claims and demands are reported and summarized for review and approval by the City Council on a routine basis at each City Council meeting. The attached claims represent the paid claims and demands since the last City Council meeting. FISCAL IMPACT: All claims and demands were paid from appropriated funds or authorized resources of the City and have been recorded in accordance with the City's policies and procedures. ATTACHMENTS: Resolution List of Demands RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ALLOWING CERTAIN CLAIMS AND DEMANDS AS SET FORTH IN EXHIBIT A THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. That the following claims and demands as set forth in Exhibit A, on file in the office of the City Clerk, has been reviewed by the City Manager's Office and that the same are hereby allowed in the amount of $8,148,773.57. Section 2. The City Clerk shall certify the adoption of this resolution. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [S EAL] STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 07- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8th day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk CITY OF TEMECULA LIST OF DEMANDS 12x062007 TOTAL CHECK RUN: 12/13,12007 TOTAL CHECK RUN: 12/14/2007 TOTAL CHECK RUN: 121"20,12007 TOTAL CHECK RUN: 12/06/2.007 TOTAL PAYROLL RUN: 12/13/2007 TOTAL PAYROLL RUN: TOTAL LIST OF DEMANDS FOR 01/08/2008 COUNCIL MEETING: DISBURSEMENTS BY FUND: CHECKS $ 1,292,206.34 3,667,494.95 1,461,717.35 1,197,820.25 36,630.46 492,904.22 $ 8,148,773.57 001 GENERAL FUND $ 4,287,705.77 165 RDA LOW,11\40D - 20% SET ASIDE 223,195.60 190 TEMECULA COMMUNITY SERVICES DISTRICT 573,439.16 192 TCSD SERVICE LEVEL B 63,811.80 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 119,958.52 194 TCSD SERVICE LEVEL D 116,436.13 195 TCSD SERVICE LEVEL R 1,670.00 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 11,741.30 197 TEMECULA LIBRARY FUND 24,405.69 210 CAPITAL IMPROVEMENT PROJECTS FUND 1,628,787.67 280 REDEVELOPMENT AGENCY - CIP PROJECT 45,675.55 300 INSURANCE FUND 242,766.96 310 VEHICLES FUND 44,179.91 320 INFORMATION SYSTEMS 138,545.45 330 SUPPORT SERVICES 8,034.48 340 FACILITIES 23,638.43 380 RDA 2002 TABS DEBT SERVICE FUND 65,246.47 $ 001 GENERAL FUND $ 340,795.82 165 RDA LOWMOD - 20% SET ASIDE 8,497.45 190 TEMECULA COMMUNITY SERVICES DISTRICT 121,228.38 192 TCSD SERVICE LEVEL B 118.64 193 TCSD SERVICE LEVEL"C" LANDSCAPE/SLOPE 5,353.34 194 TCSD SERVICE LEVEL D 794.76 196 TCSD SERVICE LEVEL "L" LAKE PARK MA1NT. 715.95 197 TEMECULA LIBRARY FUND 380.57 280 REDEVELOPMENT AGENCY - CIP PROJECT 5,307.90 300 INSURANCE FUND 1,262.00 320 INFORIVIATION SYSTEMS 33,153.48 330 SUPPORT SERVICES 3,804.36 340 FACILITIES 8,122.03 7,619;238.89 529, 534.68 TOTAL BY FUND: $ 8,148,77157 apChkLst 12106/2007 4:53:08PM Final Check List CITY OF TEMECULA Page: 1 Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 969 12/0612007 000283 INSTATAX(IRS) Federal Income Taxes Payment 4,383.72 4,383.72 970 1210612007 000444 INSTATAX (EDD) State Income Taxes Payment 892.51 892.51 120186 11130/2007 008252 AGE 10/30-1119 Sister City tour guide svcs 20,880.00 20,880.00 120187 12106/2007 004765 ACTIVE NETWORK INC, THE Epson ribbon/thermal paper:IS 143.31 143.31 120188 12/0612007 004240 AMERICAN FORENSIC NURSES Jan Stand By Fee: Police 1,000.00 DUI & drug screenings: Police 470.00 DUI & drug screenings: Police 222.00 1,692.00 120189 12/0612007 008279 AMERICOMP INFOSYSTEMS INC Gefen DA Signal Booster:Fld Op Ctr 203.65 Misc Computer Items: IS Library 59.26 262.91 120190 12/0612007 000101 APPLE ON E INC temp help ppe 11117 Ortiz, Vanessa 568.00 568.00 120191 1210612007 001323 ARROWHEAD WATER INC Bottled wtr svcs: City Hall 244.17 Bottled wtr svcs: Maint Facility 149.93 Bottled wtr svcs: Library 113.72 Bottled wtr svcs: CRC 82.39 Bottled wtr svcs: City Hall 42.01 Bottled wtr svcs: PBSP 3079 Bottled wtr svcs: Skate Park 28.42 Bottled wtr svcs: Ad Op Ctr 23.09 Bottled wtr svcs: Ch Museum 19.26 Bottled wtr svcs: Theater 12.88 Bottled wtr svcs: TCC 10.65 Bottled wtr svcs: City Council 9.19 Bottled wtr svcs: TES Pool 4.30 770.80 120192 1210612007 002541 BECKER CONSTRUCTION SRVS Pauba Rd guardrail repairs: PW 2,170.00 2,170.00 INC 120193 12106/2007 003984 BENOIT, VINCENT H. Santa:Old Town holiday event 350.00 garnishment case# 880752292 -87.50 262.50 120194 1210612007 004040 BIG FOOT GRAPHICS TCSD instructor earnings 490.00 490.00 120195 12106/2007 004262 BIO-TOX LABORATORIES Dui & Drug Screenings: Police 900.00 Dui & Drug Screenings: Police 594.00 creditA cases billed for SW & Perris -140.00 1,354.00 Page:1 apChkLst Final Check List Page: 2 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120196 1210612007 008605 BONTERRA CONSULTING Oct Clean-Up:Rrsp Desilting Basin 4,067.50 4,067.50 120197 1210612007 004176 BROADWING Nov Long distance & internet svcs 750.46 750.46 TELECOMMUNICATIONS 120198 1210612007 000128 BROWN & BROWN OF CALIF INC 07108 ins policy 70210716 renewal 350.00 350.00 120199 12/0612007 003138 CAL MAT PW patch truck materials 725.16 PW patch truck materials 490.96 PW patch truck materials 293.29 PW patch truck materials 258.39 PW patch truck materials 251.06 PW patch truck materials 194.39 2,213.25 120200 1210612007 005321 CALIF ASSOC OF CODE CACE Seminar 12/13:Grove, Jeff 65.00 65.00 120201 12106/2007 001054 CALIF BUILDING OFFICIALS CALBO Training M.Tooke: B&S 300.00 300.00 120202 12JO612007 000647 CALIF DEPT OF CONSUMER '08 mb brd eng/surveyors:Odviar,A 125.00 125.00 AFFAIRS 120203 12106/2007 000647 CALIF DEPT OF CONSUMER '08 mb brd eng/surveyors:Alegria,G 125.00 125.00 AFFAIRS 120204 12/0612007 004248 CALIF DEPT OF JUSTICE- Aug fingerprinting svc:Palice/HR 4,717.00 ACCTING Sept fingerprinting svc:Police/HR 4,658.00 9,375.00 120205 12106/2007 004971 CANON FINANCIAL SERVICES, Jan copier lease: Stn 92 200.81 200.81 INC 120206 12106/2007 010434 CATERERS CAFE rfrshmnts:city attorney mtg 11127 93.84 93.84 120207 1210612007 005417 CINTAS FIRST AID & SAFETY First aid supplies: PW 157.33 157.33 120208 1210612007 000912 CITY CLERKS ASSN OF CALIF '08 CCAC mbrshp:SJ,MB,GF,CD 365.00 365.00 120209 12106/2007 004414 COMMUNITYWORKS DESIGN Sept Ldscp Insp Svc:Diaz Rd Realign 1,132.21 GROUP Sept Indscp plan ck svcs:Planning 427.50 Aug Design Svcs:Pechanga Pkwy 63.76 1,623.47 120210 12106/2007 009969 COMPUCOM SYSTEMS INC MS licenses Windows Server: IS 66,342.19 66,342.19 Page2 apChkLst Final Check List Page: 3 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120211 12106/2007 000447 COMTRONIX OF HEMET equip repair/maint: Police 80.00 equip repairlmaint: Police 75.00 155.00 120212 1210612007 006303 CONDUIT NETWORKS, INC cabling/security sys: Fld Op Ctr 29,167.53 29,167.53 120213 12/0612007 011374 CORAL CONSTRUCTION sign change outs 1-15: PW 21,640.00 COMPANY credit: CO#1 PW06-13 -820.00 20,820.00 120214 12106/2007 003986 COZAD & FOX INC Oct cnslt svcs: RDA property 3,120.00 3,120.00 120215 12J0612007 010650 CRAFTSMEN PLUMBING & HVAC plumbing svcs:EOC evac center 521.58 INC plumbing svcs:EOC evac center 246.16 767.74 120216 12106/2007 004123 D L PHARES & ASSOCIATES Dec lease pmt: PD storefront 2,556.79 2,556.79 120217 12106/2007 005766 DATA BUSINESS SYSTEMS INC W-2 forms: Finance 289.48 289.48 120218 12/06/2007 001393 DATA TICKET INC Oct parking citation svcs: Police 2,931.63 2,931.63 120219 1210612007 002990 DAVID TURCH & ASSOCIATES Dec Federal lobbyist svcs: CM 3,350.00 3,350.00 120220 12106/2007 005774 DEANS WHOLESALE FLOWERS p oin settias: breakfast w/Santa 404.14 404.14 120221 12/0612007 011027 DEL RIO ENTERPRISE INC. Change Order 1:PW06-01(A)-2 1,425.90 1,425.90 120222 12106/2007 002701 DIVERSIFIED RISK Nov special events premiums 884.97 884.97 120223 12106/2007 004192 DOWNS COMMERCIAL FUELING Fuel for City vehicles: TCSD 1,832.76 INC Fuel for City vehicles: PW Maint 1,595.25 Fuel for City vehicles: B&S 547.07 Fuel for City vehicles: Planning 409.58 Fuel for City vehicles: PW Lnd Dv 399.22 Fuel for City vehicles: PW CIP 163.18 Fuel for City vehicles: PW 80.60 Fuel for City vehicles: Police 12.76 5,040.42 120224 12/0612007 001669 DUNN EDWARDS CORPORATION misc supplies: PW Maint 23.03 misc supplies: PW Maint 10.73 33.76 120225 12/0612007 004799 E C S IMAGING INC laserfiche licensing: Info Sys 1,680.90 1,680.90 Page3 apChkLst 12/0612007 4:53:08PM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 120226 1210612007 001056 EXCEL LANDSCAPE 120227 12/0612007 000165 FEDERAL EXPRESS INC 120228 1210612007 004000 FENCING BYACREY INC Final Check List Page: 4 CITY OF TEMECULA (Continued) Description Amount Paid Check Total irrigation repairs: medians/parks irrigation repairs:Vail Ranch Pkwy irrigation repairs: medians/parks irrigation repairs: medians/parks 10/22-11/2 express mail svc: Citywide 11/7-20 express mail svc: Citywide Res Imp Prgm: Martin, Marguerite 706.91 636.35 219.67 137.89 1,700.82 318.68 257.81 576.49 6,810.00 6,810.00 Page-.4 apChkLst Final Check List Page: 5 12/06/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120229 1210612007 003347 FIRST BANKCARD CENTER SOUTHWEST AIRLINES JC Airfare:NLC Conf:11113-17:NwOrlns 166.00 RITZ CAMERA DU camera for Code Enforcement 149.99 THINGS REMEMBERED RR Gifts for Sister Cities 92.65 BOMBAY CLUB RESTAURANT JC Meal:NLC COnf:11113-17:NwOrIns 87.78 SEE'S CANDY SHOPS, INC. RR Gifts for Sister Cities 74.70 PENFOLD'S CAFE GY Refrshmnts:Union Mtg 62.95 LA COCINA BAR & GRILL GY Refreshments:TCC Fire Debriefing 56.38 TIGERDIRECT.COM DU Power Inverter 375 watt 54.48 GREEN BURITO GY Refreshments: Fire Command Gtr 49.35 GLOBAL CTI GROUP INC. DU Desi Name Label 32D button 40.66 DU bank charges 37.76 ONTARIO AIRPORT JC Prkg:NLC Conf:11113-17:NwOrlns 35.00 GOURMET ITALIA GY Refreshments:SW Health Care Mtg 27.63 UNITED AIRLINES RR Add't Airfare fees:Sister Cities 27.33 RR Bank frgn trans fees 0.81 JC Credit:Bank charges -31.55 DU Credit: Bank Charges -35.00 SOUTH COAST WINERY, INC. GY Refund Dpst:Rental 107.76 SOUTH COAST WINERY, INC. HP Refund Dpst:Room Cancellation -293.90 HILTON JC HtI:NLC Conf:11113-17:NwOrlns 835.10 PALM SPRINGS AERIAL HP Tickets:Sr Ctr Excursion 798.00 TRAMWAY CALIF PIZZA KITCHEN HP refresh m ents:Team Bldg event 640.81 HORNBLOWER YACHTS INC HP Tickets:Team bldg event 592.00 PAYPAL GR Payflow for Business Licenses 249.00 DEWALT SERVICE HP table saw:TCSD maint crew 223.90 3,834.07 120230 1210612007 004074 FRANCHISE MGMT SERVICES misc supplies:breakfast w/Santa 228.17 INC misc supplies: breakfast w/Santa 25.84 254.01 120231 1210612007 002982 FRANCHISE TAX BOARD Case# 880752292 Benoit, V. 87.50 87.50 120232 12/0612007 010326 G E IONICS INC equip maint/repair: Stn 73 52.00 equip mainttrepair: Stn 73 23.71 75.71 Pages apChkLst 12/06/2007 4:53:08PM Final Check List CITY OF TEMECULA Page: 6 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120233 1210612007 005947 GOLDEN STATE OVERNIGHT 11/1-14 express mail svc:Fire Prev 50.12 50.12 120234 12/0612007 011605 GRANT GENERAL refund:deposit 27258192 Via Industria 995.00 995.00 CONTRACTORS 120235 1210612007 003342 HABITAT FOR HUMANITY Habitat-Humanity:Kip Inc 52,535.00 52,535.00 120236 1210612007 003342 HABITAT FOR HUMANITY Habitat-Humanity:Redhawk Eng 47,492.90 47,492.90 120237 1210612007 003342 HABITAT FOR HUMANITY Habitat-Humanity:Sw Const Co 25,386.00 25,386.00 120238 12106/2007 000186 HANKS HARDWARE INC Hardware supplies: PW Traffic 625.25 Hardware supplies: Ch Museum 390.73 Hardware supplies: City Hall/Fire 215.65 Hardware supplies: Skate Park 133.35 1,364.98 120239 12J0612007 001135 HEALTH POINTE MEDICAL Employee Physicals: Hr 25.00 25.00 GROUP INC 120240 12106/2007 002906 HEMET FENCE COMPANY Res Imp Prgm: Kuipers, Benjamin 525.00 525.00 120241 1210612007 006688 HEMET-TEMECULA EAC '08 CEAC mbrship:City of Temecula 25.00 25.00 120242 1210612007 004811 HEWLETT PACKARD 10 hp ultra-slim desktop: IS 11,303.53 Hp Designjet 60-In Printer:ls 925.57 12,229.10 120243 1210612007 007792 HINTON, BEVERLY L. TCSD instructor earnings 95.20 95.20 120244 12106/2007 003198 HOME DEPOT, THE Hardware supplies: TCSD Parks 76.45 76.45 120245 12J0612007 010550 HOME DEPOT, THE Hardware supplies: TCSD Parks 48.89 Hardware supplies: PW 5.33 54.22 120246 12/0612007 007117 HOWE WELDING & FABRICATION Nov welding svcs:Ovrlnd fencing 68,251.30 68,251.30 INC 120247 12/06/2007 000193 1 C M A '081CMA mbrship: Yates, Grant 1,103.00 1,103.00 120248 12/0612007 009693 INLAND VALLEY CLASSICAL The Nutcracker Ballet 11123-25 11,149.13 11,149.13 BALLET 120249 1210612007 006914 INNOVATIVE DOCUMENT Oct copier maintlusage: Citywide 5,167.88 SOLUTIONS fax supplies: Citywide 517.89 5,685.77 Page.6 apChkLst Final Check List Page: 7 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120250 12106/2007 003571 INTL ASSN OF PLUMBING AND ICC Certification: Zuna, Paul 119.23 119.23 120251 12/0612007 003296 INTL CODE COUNCIL '06 IPC Turbo-Tabs: B&S 153.81 153.81 120252 1210612007 000198 INTL COUNCIL OF SHOPPING '08 ICSC mbrship:Wolnick, Gloria 50.00 50.00 120253 12106/2007 000198 INTL COUNCIL OF SHOPPING '08 ICSC mbrship:Adams, Aaron 50.00 50.00 120254 1210612007 004908 JIFFY LUBE 1878 vehicle repair & maint: B&S 41.47 41.47 120255 1210612007 001282 KNORR SYSTEMS INC misc parts:CRC & TES Pools 283.12 283.12 120256 1210612007 000209 L & M FERTILIZER INC equip repairlmaint: PW Maint 74.06 maint supplies: Stn 84 6.40 80.46 120257 12106/2007 009285 LEISURE MORE CORP pet waste bags: Parks 653.58 653.58 120258 1210612007 010656 LEUSCHEN, AIDEE TCSD Instructor Earnings 262.50 TCSD Instructor Earnings 157.50 420.00 120259 12/06/2007 004905 LIEBERT, CASSIDY& WHITMORE Oct HR legal svcsforTE060-01 702.00 702.00 120260 12106/2007 011481 LINDY'S CHOCOLATE FLORIST recognition gifts:fire evac volunteers 399.00 399.00 120261 1210612007 004087 LOWES INC Hardware supplies: Stn 92 52.58 Hardware supplies: Stn 92 36.86 return:hardware supplies Stn 92 -1.55 87.89 120262 1210612007 003782 MAIN STREET SIGNS street signs & supplies:pw maint div 1,313.20 1,313.20 120263 12/0612007 004141 MAINTEX INC misc custodial supplies:field ops ctr 114.95 114.95 120264 12106/2007 001967 MANPOWER TEMPORARY temp help We 11118 AC(fF 1,239.68 1,239.68 SERVICES 120265 12106/2007 004803 MAPLOGIC CORPORATION Annual software maint:layout mgr pro 475.00 475.00 120266 12/0612007 010974 MATRIX CONSULTING GROUP User Fee Study Update: Finance Dept 8,900.00 credit:pending backup documentation -58.40 8,841.60 Page.7 apChkLst Final Check List Page: 8 12/06/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120267 12106/2007 000220 MAURICE PRINTERS INC printinglHigh Country Magazine:T.Mus. 2,971.75 printing srvcs/CAFR Cover:finance dept 995.61 printing srvcs/CAFR tab div:finance dept 480.57 4,447.93 120268 1210612007 011179 MC MILLIN REDHAWK LLC TCSD Instructor Earnings 472.50 TCSD Instructor Earnings 280.00 TCSD Instructor Earnings 63.00 815.50 120269 12J0612007 000944 MCCAIN TRAFFIC SUPPLY INC traffic sig controller: R.C./Bus. Pk Dr 12,054.33 12,054.33 120270 1210612007 006571 MELODY'S AD WORKS reimb expenses:O.T. holiday 562.91 reimb expenses:O.T. holiday wreaths 427.47 credit:billing adj/o.t.holiday wreaths -5.23 985.15 120271 12J0612007 007210 MIDORI GARDENS Irrigation repairs:PBSP 10116 374.98 Irrigation repairs:vail ranch park 10130 229.34 Irrigation repairs:PBSP 10112 113.98 Irrigation repairs:PBSP 1015 106.09 824.39 120272 12/0612007 011440 MILLMORE'S WAX CREW City vehicles detailing srvcs:PW Depts 150.00 City vehicles detailing srvcs:PW Depts 150.00 City vehicles detailing srvcs:PW Depts 150.00 City vehicles detailing srvcs:PW Depts 125.00 City vehicles detailing srvcs:PW Depts 125.00 City vehicles detailing srvcs:PW Depts 125.00 City vehicles detailing srvcs:PW Depts 100.00 925.00 120273 1210612007 001384 MINUTEMAN PRESS envelopes:hr dept 669.88 envelopes: Planning Dept 272.64 stationary/envelopes:police 175.76 business cards: K. Noland 43.37 1,161.65 120274 12106/2007 011609 MONTGOMERY, LISA refund:good manners/1022.202-ZM/CM 50.00 50.00 120275 12106/2007 010990 MOORE IACOFANO GOLTSMAN Sep-Oct consult srvcs:youth master plan 10,799.53 10,799.53 INC 120276 12106/2007 000230 MUNIFINANCIAL Service Level C Election Services 3,906.59 3,906.59 120277 1210612007 007564 MURRAYS HOTEL & ice machine for EOC 2,102.15 2,102.15 RESTAURANT 120278 1210612007 001986 MUZAK-SOUTHERN CALIFORNI A Dec "on-hold" phone music:City Fac's 131.72 Dec Music Broadcast:Old Town 69.11 200.83 120279 12/06/2007 002925 NAPA AUTO PARTS misc supplies:pw maint div 5.33 5.33 Page:B apChkLst Final Check List Page: 9 12/06/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120280 12106/2007 000718 NATIONAL RECREATION PARK 3/1108-2128109 mbrshp:Herman Parker 135.00 135.00 ASSOC 120281 12/0612007 010504 NEXTEL COMMUNICATIONS Oct 26-Nov 25, 2007 cellular usage/equip 1,406.56 1,406.56 120282 1210612007 008528 NICHOLS) MELBURG & ROSETTO Sep dsgn old town infrastructure 128,663.89 Sep architectleng srvs:civic center 89,785.30 Oct architectleng srvs:civic center 85,832.80 Oct dsgn old town infrastructure 48,424.12 352,706.11 120283 12/0612007 002292 OASIS VENDING coffee & kitchen supplies:City Hall 777.72 coffee & kitchen supplies:West Wing 113.45 891.17 120284 12/0612007 006721 OFFICEMAX -A BOISE COMPANY File cabinets:field ops center 6,482.24 6,482.24 120285 12106/2007 002105 OLD TOWN TIRE & SERVICE City Vehicle Repair/Maint Svcs 214.88 214.88 120286 12/0612007 001171 ORIENTAL TRADING COMPANY recreation supplies:mpsc 310.80 310.80 INC 120287 1210612007 002297 OVERLAND PACIFIC & CUTLER Oct Consulting:Civic Center 190.00 190.00 INC 120288 12/0612007 002256 P & D CONSULTANTS INC Oct Plan Ck Review Srvcs:B&S Dept. 11,712.46 credit:dupi billing/mileage:B&S -9.70 11,702.76 120289 1210612007 002734 P V P COMMUNICATIONS INC Uniform equip:police motor helmet 3,391.30 Communication kits:pd motor helmets 563.50 3,954.80 120290 1210612007 002652 PAT & OSCARS RESTAURANT rfrshmnts:Parent Prjt Class Banquet 102.94 102.94 120291 12/0612007 011612 PAUL GARRETT ENTERPRISES refund:grading deposit tr26828-1,2 995.00 995.00 120292 12106/2007 000249 PETTY CASH Petty Cash Reimbursement 1,481.27 1,481.27 120293 12/0612007 010338 POOL & ELECTRICAL PRODUCTS pool supplies & chemicals: aquatics 200.34 200.34 INC 120294 1210612007 011610 PRICE, JAMES P refund:admin cite 2572 50.00 50.00 120295 12/0612007 003697 PROJECT DESIGN 614-10/7107 Dsgn:Murri Crk Bridge/Ovrlnd 2,537.44 2,537.44 CONSULTANTS Page9 apChkLst Final Check List 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description 120296 12106/2007 001416 QUICK CRETE PRODUCTS INC repair & maint facility:pbsp 120297 12/0612007 007051 RALPHS cookies for Breakfast w/Santa 120298 1210612007 000728 RAMSEY BACKFLOW & backtlow test/repair: medians & parks PLUMBING 120299 1210612007 000262 RANCHO CALIF WATER DISTRICT Various TCSD Water Meters Nov 01-02-45006-0 Pauba Rd Various TCSD Water Meters Nov 01-04-47210-0 T.E.S. Pool Various Fire Water Meters Nov 01-08-38009-0 Fire Stn 92 Nov 01-04-10033-2 Margarita Rd 120300 12106/2007 002654 RANCHO FORD LINCOLN City veh repair & maint:code enforce MERCURY City veh repair & maint:code enforce 120301 12/0612007 003761 RANCHO METALS & SUPPLY metal supplies:pw maintenance 120302 1210612007 000907 RANCHO TEMECULA CAR WASH Oct City vehicles detailing srvcs credit:billing adjustment/TCSD 120303 12106/2007 000271 RBF CONSULTING Sep ProfSrvcs:79s Ult Intrchng 120304 12/0612007 002110 RENTAL SERVICE CORPORATION 120305 12/0612007 004498 REPUBLIC INTELLIGENT equip rental:var park sites equip rental:PW mntc equip rental:PW mntc Oct eng srvcs:pw traffic 120306 12/0612007 010087 RIGGS & RIGGS INC real estate apprasial:Pech.Pkwy St Imprv 120307 12106/2007 000353 RIVERSIDE CO AUDITOR Oct 2007 parking citation 120308 1210612007 000411 RIVERSIDE CO FLOOD CONTROL Aug permit fees:murr creek trail Sep permit fees:murr creek trail 120309 1210612007 000268 RIVERSIDE CO HABITAT Nov'07 K-Rat payment 120310 1210612007 001592 RIVERSIDE CO INFO Oct radio rental & maint:police TECHNOLOGY Amount Paid 374.97 209.65 105.00 25,387.19 3,303.85 2,199.32 669.28 469.31 73.48 54.36 98.46 51.48 22.17 220.50 -10.50 69.54 933.65 15.81 12.37 1,733.00 4,500.00 9,292.50 1,248.72 439.36 2,830.00 1,658.28 Page: 10 Check Total 374.97 209.65 105.00 32,156.79 149.94 22.17 210.00 69.54 961.83 1,733.00 4,500.00 9,292.50 1,688.08 2,830.00 1,658.28 Page:10 apChkLst Final Check List 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description 120311 12106/2007 005406 RIVERSIDE CO TRAIN OFF. ASSN Prev lA trn 1128-211108 Joshua Marsh 120312 12106/2007 005406 RIVERSIDE CO TRAIN OFF. ASSN Prev 1A 1128-2!1108 Nick Lara 120313 1210612007 011101 RIVERSIDE LAND Oct Consulting Srvcs:Open Space CONSERVANCY 120314 1210612007 001500 SAN DIEGO REGIONAL TRAIN Writing for Results AMIWM 10116 & 1117 GTR 120315 12/0612007 011511 SCUBA CENTER TEMECULA TCSD Instructor Earnings 120316 12/0612007 010089 SECURITAS SECURITY SRVCS 1119-15107 security srvcs:stn 95 USA 11/16-22107 security srvcs:stn 95 120317 12/0612007 009213 SHERRY BERRY MUSIC Jazz @ the Merc Concert 11129107 Jazz @ the Merc Concert 11/15107 120318 12106/2007 011548 SIMON WIESENTHAL CENTER excursion: museum oftolerance 4113108 INC 120319 12106/2007 004814 SIMON WONG ENGINEERING INC Oct eng srvcs:main st bridge 120320 12/0612007 000645 SMART & FINAL INC 120321 12/0612007 000537 SO CALIF EDISON 120322 12106/2007 001212 SO CALIF GAS COMPANY supplies:holiday parade/brkfst w/Santa misc supplies:holiday craft wkshp misc supplies:sister cities pgrm Nov 2-28-629-0507 Library Nov 2-00-397-5042 City Hall Nov 2-27-805-3194 Theater 2-00-397-5067 various mtrs Nov 2-02-502-8077 Maint Fac Nov 2-29-224-0173 Fire Stn Nov 2-29-295-3510 Wolf Vlly Nov 2-29-657-2332 Redwood Rd PIED Nov 2-29-458-7548 Wolf Crl< PIED Nov 091-085-1632-0 T.E.S. Pool 120323 12106/2007 000519 SOUTH COUNTY PEST CONTROL pest control services: fs 84 INC 120324 1210612007 007851 SOUTHCOAST HEATING & AIR Nov Ill prev maint:City Fac's Nov hvac prev maint:Fire Stns HVAC repair:theater 9119 Amount Paid 160.00 160.00 3,218.74 570.00 336.00 1,169.68 1,154.02 462.00 294.00 650.00 1,766.40 293.99 160.47 153.55 6,628.99 5,812.42 3,327.73 1,644.22 1,404.34 1,075.52 1,031.01 16.90 67.44 2,081.43 80.00 4,000.00 535.00 112.50 Page: 11 Check Total 160.00 160.00 3,218.74 570.00 336.00 2,323.70 756.00 650.00 1,766.40 608.01 21,008.57 2,081.43 80.00 4,647.50 Page:11 apChkLst Final Check List Page: 12 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120325 1210612007 003000 STATE WATER RESOURCES Storm water permit:rrsp desiltation prjt 403.00 403.00 120326 12/0612007 008023 STATER BROTHERS MARKETS coffee supplies:EOC command post 93.52 93.52 120327 1210612007 011592 STOYAN ENTERPRISES INC re-upholstery Santa's chair:TCSD 390.00 390.00 120328 12106/2007 009061 STURDIVANT, ANGELA P. TCSD Instructor Earnings 201.60 TCSD Instructor Earnings 100.80 TCSD Instructor Earnings 67.20 TCSD Instructor Earnings 17.50 387.10 120329 1210612007 010215 T & T JANITORIAL Novjanitorial services: City Fac's 7,301.76 7,301.76 120330 12106/2007 000305 TARGET BANK BUS CARD SRVCS recreation supplies:MPSC 180.27 misc supplies:holiday craft wkshp 156.15 Misc Supplies:Eoc/Shelter Operations 103.16 recreation supplies: c. museum 101.58 misc supplies:theater 48.66 misc.supplies:holiday parade event 14.81 Misc Supplies:Eoc/Shelter Operations 293.09 misc supplies: breakfast w/Santa 197.34 1,095.06 120331 12106/2007 011617 TEM.VLY COMM. CHRISTMAS Council Comm Srvc Funding 500.00 500.00 DINNER 120332 12/0612007 000310 TEMECULA CREEK INN INC Depositlhtl rooms'08 every 15 min pgrm 250.00 250.00 120333 12106/2007 001035 TEMECULA ENVIRONMENTAL Jan-Jun '07 trash hauling services 115,515.08 115,515.08 120334 12106/2007 001035 TEMECULA ENVIRONMENTAL Trash disposal:EOC operationstrVHS 236.11 Trash disposal:EOC operations/CHS 218.93 455.04 120335 12/06/2007 000168 TEMECULA FLOWER CORRAL Sunshine Fund 198.10 198.10 120336 12/0612007 010848 TEMECULA PLANTSCAPE Nov lease pmt:plants @ library 400.00 400.00 120337 12/06/2007 004260 TEMECULA STAMP & GRAPHICS rubber & pre-inked stamps: Fire Prev, 22.86 22.86 120338 1210612007 000307 TEMECULA TROPHY COMPANY recognition award:R. Wiley 35.67 nameplate: L. Watson 9.16 44.83 Page:12 apChkLst Final Check List Page: 13 12106/2007 4:53:08PM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120339 12106/2007 004274 TEMECULA VALLEY SECURITY locksmith services: crc 134.91 CENTR locksmith services: ere 53.02 187.93 120340 12106/2007 003849 TERRYBERRY COMPANY Service Recognition pins: HR 2007 2,157.14 2,157.14 120341 1210612007 010276 TIME WARNER GABLE Nov high speed internet CW 54.95 54.95 120342 1210612007 000668 TIMMY D PRODUCTIONS INC Skate Park DJ:skate competition 1113 475.00 sound tech srvcs:tree lighting 11129 325.00 800.00 120343 12J0612007 000978 TIP OF SW RIVERSIDE COUNTY 2nd Qtr Emerg. Response Vol. Prgm 2,442.00 2,442.00 INC 120344 12106/2007 011393 TOUCANED INC cert training guideslmanuals:T.C.C. 1,615.98 1,615.98 120345 1210612007 007433 TOVEY SHULTZ CONSTRUCTION Sep Prgs Pmt #14: Foe 155,188.22 155,188.22 INC 120346 12106/2007 011611 TRAN, QUANG HONG refund:permit130975 via norte 995.00 995.00 120347 12106/2007 011526 TURF RESCUE INC Turf rehab:rrsp 27,423.00 27,423.00 120348 1210612007 002702 U S POSTAL SERVICE Postage meter deposit 4,416.01 4,416.01 120349 1210612007 006807 VANIR CONSTRUCTION Sep Constr Mgmt Srvcs:Fire Stn 92 2,640.00 2,640.00 120350 1210612007 004261 VERIZON Novxxx-5706 Field OPS Cntr 294.06 Nov xxx-5509 general usage 151.65 Nov xxx-3526 fire alarm 98.03 Nov xxx-9897 general usage 89.48 xxx-0049 general usage 48.00 Novxxx-1999 general usage 42.95 Novxxx-5275 PD DSL 33.73 Nov xxx-7786 C. Washington 33.45 Nov xxx-5696 Sports Complex 32.68 Novxxx-2676 general usage 32.68 856.71 120351 1210612007 004789 VERIZON ONLINE Internet svcs/EOC backup @ Library 439.95 439.95 120352 1210612007 003730 WEST COAST ARBORISTS INC Tree & Stump Removal:Ridgeview 300.00 300.00 120353 12106/2007 002109 WHITECAP INDUSTRIES INC maint supplies: pw maint/land dev 448.47 448.47 Page:13 apChkLst 12/0612007 4:53:08PM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 120354 1210612007 004774 WOODCREST UNIFORMS 120355 12!0612007 000348 ZIGLER, GAIL Final Check List Page: 14 CITY OF TEMECULA (Continued) Description Amount Paid Check Total Uniform srvcs:police 22.03 Uniform srvcs:police 8.00 30.03 reimb:supplies for holiday events 1,128.19 1,128.19 Grand total for UNION BANK OF CALIFORNIA: 1,292,206.34 Page:14 apChkLst Final Check List Page: 15 12/0612007 4:53:08PM CITY OF TEMECULA 172 checks in this report. Grand Total All Checks: 1,292, 206.34 Page:15 apChkLst 1211312007 9:38:54AM Final Check List CITY OF TEMECULA Page: 1 Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 971 1211312007 000444 INSTATAX (EDD) State Disability Ins Payment 22,764.09 22,764.09 972 1211312007 000283 INSTATAX(IRS) Federal Income Taxes Payment 91,218.95 91,218.95 973 12113/2007 001065 NATIONWIDE RETIREMENT Nationwide Retirement Payment 24,520.77 24,520.77 SOLUTION 974 1211312007 000246 PERS (EMPLOYEES' PERS ER Paid Member Contr Payment 123,479.83 123,479.83 RETIREMENT) 975 12113/2007 000389 U S C M WEST (OBRA), OBRA- Project Retirement Payment 4,368.32 4,368.32 NATIONWIDE RETIREMENT 976 1211312007 000642 TEMECULA CITY FLEXIBLE Child Care Reimbursement Payment 9,809.80 9,809.80 977 1211312007 000245 PERS - HEALTH INSUR PREMIUM PERS Health Admin Cost Payment 72,056.93 Blue Shield HMO Payment 0.00 72,056.93 978 12113/2007 005460 U S BANK RDA debt srvc pmt 65,246.47 65,246.47 120356 1211312007 009604 12MILESOUT.COM Nov video svcs: Council mtgs 1,000.00 1,000.00 120357 1211312007 007759 1ST CHOICE WINDOWS INC Facade Program: Palomar Inn 9,157.76 9,157.76 120358 12113/2007 003552 A F L A C AFLAC Cancer Payment 2,946.34 2,946.34 120359 1211312007 004973 ABACHERLI,LINDI TCSD instructor earnings 760.00 760.00 120360 12113/2007 008552 ADKINS DESIGN CONSULTING Nov graphic design svcs:Theater 1,731.66 1,731.66 120361 12/13/2007 001916 ALBERT A WEBB ASSOCIATES Oct cnslt svcs:Santa Marg EIR 17,689.38 17,689.38 120362 1211312007 004446 AMERICAN SOCIETY OF CIVIL '08 ASCE mbrshp:Beswick,S 354626 250.00 250.00 120363 12113/2007 000101 APPLE ONE INC temp help ppe 11124 Ortiz, V 426.00 temp help ppe 12/1 Ortiz, V 710.00 1,136.00 120364 1211312007 001323 ARROWHEAD WATER INC Bottled wtr svcs: TV Museum 19.00 Bottled wtr secs: Chaparral Aquatics 20.38 3938 Page:1 apChkLst Final Check List Page: 2 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120365 12113/2007 003203 ARTISTIC EMBROIDERY supplies: Holiday Parade 666.70 666.70 120366 12/1312007 003814 BALLREICH, MICHAELA 07 New Law/Election Sem:1215-6:Montry 7.52 7.52 120367 1211312007 002381 BEAUDOIN, LINDA Retirement Medical Payment 719.20 719.20 120368 12113/2007 003984 BENOIT, VINCENT H. garnishment case# 880752292 -87.50 Santa in Old Town 12115-16 350.00 262.50 120369 12113/2007 011555 BEST FOR LESS TIRES tires '02 Ford truck: Code Enf 430.34 tires'99 Ford truck: Code Enf 527.88 958.22 120370 12113/2007 011624 BREKKE, WAYNE refund: holiday light parade 25.00 25.00 120371 1211312007 003222 BROCKMEIER, CAROL Retirement Medical Payment 719.20 719.20 120372 1211312007 000128 BROWN & BROWN OF CALIF INC Ins policy renewal 2107-2108 F.O.C. 11,389.10 Ins policy renewal 2107-2108 Fire Stn 92 6,257.12 Ins policy 943F-701 renewal 07108 51,562.50 Ins policy GP063002051 07108 169,882.00 239,090.72 120373 1211312007 003138 CAL MAT PW patch truck materials 262.26 PW patch truck materials 251.06 513.32 120374 12!1312007 005321 CALIF ASSOC OF CODE '08 CACEO mbrship: Smith, Zara 25.00 25.00 120375 1211312007 010349 CALIF DEPT OF CHILD SUPPORT Support Payment Case # DF099118 25.00 25.00 120376 1211312007 004248 CALIF DEPT OF JUSTICE- Sept DUI & drug screenings: Police 1,505.00 1,505.00 ACCTING 120377 1211312007 007146 CALIFORNIA SENSOR CORP irrigation controller:P. Apis Park 1,724.00 1,724.00 120378 12113/2007 009599 CALVARY CHAPEL OF MENEFEE refund: holiday light parade 25.00 25.00 120379 12113/2007 004228 CAMERON WELDING SUPPLY Helium tanks rental/refill:TCSD 19.42 19.42 120380 12113/2007 006114 CASEY, MARGIE reimb: shop vac purchase Info Sys 75.41 75.41 120381 1211312007 010434 CATERERS CAFE refreshments:Old Town wkshp 11119 59.91 refreshments:pln comm mtg 1214 115.72 175.63 Page2 apChkLst Final Check List Page: 3 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120382 12113/2007 011510 CATO GEOSCIENCE INC Nov cnslt svcs:Santa Marg annex 12,500.00 12,500.00 120383 12/13/2007 009640 CERTIFION CORPORATION Nov investigative dbase svc:PD 150.00 150.00 120384 1211312007 011552 CHINO ICE SERVICE Ice for snow:Ch Museum event 4,045.58 4,045.58 120385 12113/2007 005417 CINTAS FIRST AID & SAFETY First aid supplies: City Hall 76.30 First aid supplies: CRC 77.11 153.41 120386 12113/2007 004405 COMMUNITYHEALTH CHARITIES Community Health Charities Payment 107.05 107.05 120387 1211312007 000447 COMTRONIX OF HEMET equip repair/maint: PW Maint 200.00 radio battery chg/analyzer:TCC 1,611.37 1,811.37 120388 12113/2007 001264 COSTCO WHOLESALE Misctoys/supplies:Spark of Love 1,479.63 supplies: Merc artist receptions 180.15 Supplies: Team PACE Activities 184.88 1,844.66 120389 12113/2007 003986 COZAD & FOX INC 9/30-1114 cnslt svc:RRSP channel 9,840.00 9,840.00 120390 1211312007 001009 D B X INC purchlnstall street signs: PW 2,035.01 2,035.01 120391 12113/2007 011027 DEL RIO ENTERPRISE INC. release retention: PW07-06 15,091.74 15,091.74 120392 12113/2007 003945 DIAMOND ENVIRONMENTAL portable toilet svc:Vail Ranch Park 59.63 SRVCS portable toilet svc:Veterans Park 59.63 portable toilet svc:Riverton Park 59.63 portable toilet svc:Redhawk Park 59.63 portable toilet svc:Long Cyn Park 69.63 308.15 120393 12113/2007 001669 DUNN EDWARDS CORPORATION misc supplies: PW Maint 35.02 35.02 120394 12113/2007 004829 ELLISON WILSON ADVOCACY Dec State lobbying svcs: CM 3,500.00 3,500.00 LLC 120395 12113/2007 005692 ELMO, ANTHONY Retirement Medical Payment 719.20 719.20 120396 1211312007 011203 ENVIRONMENTAL CLEANING Nov restroom svc:parks/Old Town 5,102.00 5,102.00 Page3 apChkLst Final Check List Page: 4 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120398 12113/2007 001056 EXCEL LANDSCAPE Sept Idscp maint: Sports Parks 44,371.22 Oct Idscp maint svc: Medians 14,070.19 Nov Idscp maint svc: Medians 14,070.19 Nov Idscp maint svc: Sports Parks 44,371.22 Nov Idscp maint svc: slope areas 29,372.80 Nov Idscp maint svc: slope areas 43,066.22 Nov Idscp svc: City Facilities 9,986.81 Oct Idscp svc: City Facilities 9,542.19 208,850.84 120399 12113/2007 009953 FEDERAL GLEANING Dec cleaning svcs:PD Mail Storefront 410.00 410.00 CONTRACTORS 120400 1211312007 000206 FEDEX KINKOS INC misc supplies: Central Svcs 51.28 51.28 120401 1211312007 011121 FORM BASED CODES INSTITUTE FBC 301 Phoenix 1125-26:Fisk/Damko 1,300.00 1,300.00 120402 1211312007 010325 FORT DEARBORN LIFE Voluntary Supp Life Insurance Payment 821.50 821.50 120403 1211312007 004074 FRANCHISE MGMT SERVICES recreation supplies: Teen Prgms 63.78 63.78 INC 120404 1211312007 002982 FRANCHISE TAX BOARD Case# 880752292 Benoit, V. 87.50 87.50 120405 1211312007 002982 FRANCHISE TAX BOARD Support Payment Case # 452379267 75.00 75.00 120406 12113/2007 000170 FRANKLIN QUEST COMPANY INC Calendars: Planning Staff 17.16 17.16 120407 12113/2007 007866 G C S SUPPLIES INC printer toner supplies: Citywide 296.55 printer toner supplies: Citywide 1,363.43 1,659.98 120408 12/1312007 010326 G E IONICS INC equip maintlrepair: Stn 73 294.93 294.93 120409 1211312007 010028 G M BUSINESS INTERIORS furniture purchlnstll: Fld Op Ctr 11,092.78 11,092.78 120410 1211312007 011204 GERMAN, JUANITA M. Tcsd Instructor earnings 206.50 Tcsd Instructor earnings 117.60 Tcsd Instructor earnings 382.20 Tcsd Instructor earnings 138.60 844.90 Page-.4 apChkLst Final Check List Page: 5 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120411 12113/2007 000177 GLENN IES OFFICE PRODUCTS Office Supplies: Fire 731.33 INC Office Supplies: TCC 64.34 Office Supplies: Records Mgmt 169.12 Office Supplies: City Clerk 318.69 Office Supplies: CRC 15.40 Office Supplies: TV Museum 78.33 Office Supplies: Theater 20.87 Office Supplies: TCSD 999.19 Office Supplies: RDA 193.83 Office Supplies: Finance 640.19 Office Supplies: CM & Council 49.77 Office Supplies: Info Sys 96.78 3,377.84 120412 12113/2007 005768 GLOBAL ELECTRIC MOTOR Vehicle repair/maint:Fire gem cars 829.90 CARS Vehicle repairlmaint:Fire gem cars 1,598.58 2,428.48 120413 12113/2007 009608 GOLDEN VALLEY MUSIC sttlmt: Candlelight Classics 1218 702.00 702.00 SOCIETY 120414 12113/2007 005056 GUTIERREZ, BETH CalPelra Labor Cf:11111-14:Mont 659.01 659.01 120415 1211312007 000378 HAFELI, THOMAS reimb: audio equip Fld Op Gtr 136.35 13635 120416 1211312007 000186 HANKS HARDWARE INC Hardware supplies: PWMaint 516.88 Hardware supplies: Theater 14.56 Hardware supplies: Fld Op Ctr 44.71 Hardware supplies: TV Museum 36.56 Hardware supplies: CRC 78.87 Hardware supplies: City Hall 94.63 Hardware supplies: Info Sys 6.69 Hardware supplies: PW Maint 79.11 872.01 120417 1211312007 001135 HEALTH POINTE MEDICAL Pre-employment Physicals: HR 50.00 50.00 GROUP INC 120418 120312007 000963 HOGAN, DAVID Retirement Medical Payment 719.20 719.20 120419 1211312007 008694 HOLIDAY INN EXPRESS hotel:ESG wknd Santa Claus RDA 263.98 263.98 TEMECULA 120420 1211312007 011625 HOLTS, ROBERT refund: holiday light parade 35.00 35.00 120421 12113/2007 000194 I C M A RETIREMENT-PLAN I C M A Retirement Trust 457 Payment 15,140.56 15,140.56 303355 Pages apChkLst Final Check List Page: 6 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120422 12113/2007 004833 IMPERIAL PAVING COMPANY INC manhole placement: park & ride 4,281.00 4,281.00 120423 1211312007 010119 IRS - OIC Sup Pmt Offer# 1000497587 452379267 140.11 140.11 120424 1211312007 001186 IRWIN, JOHN TCSD instructor earnings 256.20 TCSD instructor earnings 285.60 541.80 120425 1211312007 004884 J & W REDWOOD LUMBER CO Hardware supplies: PW Maint 46.89 46.89 INC 120426 12!1312007 011622 JOHNSON, ROBERT C reimb:Old Twn wkshp mtg 1216 210.34 210.34 120427 12113/2007 002575 JONES, SUSAN W. 07 New Law/Election Sem:1215-6:Montry 45.17 45.17 120428 12113/2007 002531 KATY FM RADIO broadcast svcs:Mystery wknd RDA 1,500.00 broadcast svc:'07 holiday events 400.00 1,900.00 120429 1211312007 003046 K F R O G 95.1 FM RADIO broadcast svc:'07 holiday events 500.00 500.00 120430 1211312007 002424 KELLEY DISPLAY INC banner maint: Econ Dev 443.69 443.69 120431 1211312007 004481 KIMLEY HORN & ASSOCIATES Aug eng svcs:Murrieta Creek Trail 1,202.95 1,202.95 INC 120432 1211312007 001085 L N CURTIS & SONS fire rescue equip: Stn 73 414.84 414.84 120433 12113/2007 007188 LAERDAL MEDICAL CORP. CPR supplies: Paramedic Tm Pgm 1,905.74 1,905.74 120434 12113/2007 006744 LAMAR CORPORATION, THE Dec billboard advertising: RDA 3,380.00 3,380.00 120435 12113/2007 000482 LEIGHTON CONSULTING INC Jul-Sept design svcs: Civic Center 1,200.00 1,200.00 120436 1211312007 003726 LIFE ASSIST INC Medical supplies: Paramedics 746.03 746.03 120437 1211312007 002933 LINSCOTT LAW & GREENSPAN hospital traffic report: Planning 5,803.10 5,803.10 120438 1211312007 011621 LOPEZ, MARY LYN refund:lost book Where is Jake 18.50 18.50 Page.6 apChkLst Final Check List Page: 7 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120439 1211312007 006897 LORY, SUSAN, J. TCSD instructor earnings 141.75 TCSD instructor earnings 173.25 TCSD instructor earnings 140.00 TCSD instructor earnings 192.50 TCSD instructor earnings 192.50 TCSD instructor earnings 192.50 TCSD instructor earnings 207.90 TCSD instructor earnings 94.50 TCSD instructor earnings 151.20 TCSD instructor earnings 173.25 1,659.35 120440 1211312007 004141 MAINTEX INC misc custodial supplies:field cps ctr 371.90 custodial supplies: crc 333.16 705.06 120441 12113/2007 001967 MANPOWER TEMPORARY temp help w/e 12102 ACITF 1,484.04 SERVICES temp help w1e 11125 AC/TF 929.76 2,413.80 120442 12113/2007 000217 MARGARITA OFFICIALS ASSN Nov officiating srvcs:tcsd sports prgms 3,510.00 3,510.00 120443 12113/2007 000220 MAURICE PRINTERS INC printing/design:City newsletters 6,234.74 6,234.74 120444 1211312007 003076 MET LIFE INSURANCE COMPANY MetLife Dental Insurance Payment 7,655.04 7,655.04 120445 1211312007 007210 MIDORI GARDENS Nov Idscp maint srvcs:Parks 68,969.46 68,969.46 120446 12113/2007 004490 MUSCO SPORTS LIGHTING INC equip repair& maint:control linkltcsd 1,575.95 1,575.95 120447 12113/2007 010168 MYERS & SONS HI-WAY SAFETY misc traffic supplies:pw maint div 1,968.59 1,968.59 INC 120448 12113/2007 002925 NAPA AUTO PARTS City vehicle repair & maint:fire stn 84 22.36 22.36 120449 1211312007 008820 NEIGHBORS NEWSPAPER Sep advertising:Old Town quilt show 250.00 Dec advertising:Old Town holiday event 250.00 500.00 120450 12113/2007 002037 NEXUS INTEGRATION SERVICES Nov Network Client Services 464.00 464.00 120451 12113/2007 010273 NIXON PEABODY LLP Sept 07 legal services-06 Special 2,138.30 Oct 07 legal services-06 Special 4,958.00 7,09630 120452 1211312007 002139 NORTH COUNTY TIMES Nov display ads:falllwinter RDA events 2,182.47 Nov public ntc ads:Pln/City Clerk/Fin 627.15 2,809.62 Page.7 apChkLst Final Check List Page: 8 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120453 12113/2007 009570 O C B REPROGRAPHICS Dup blueprint:Pechanga PkwylTCC Expan 82.62 82.62 120454 1211312007 002100 OBJECT RADIANCE INC TCSD Instructor Earnings 245.00 245.00 120455 1211312007 003964 OFFICE DEPOT BUSINESS SVS misc office supplies:police 270.70 DIV credit:item returned:Police Mall Stn -3.48 267.22 120456 1211312007 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs:TCSD 411.99 City Vehicle RepairlMaint Svcs:PW 225.05 City Vehicle RepairlMaint Svcs:PW 38.75 City Vehicle RepairlMaint Svcs:PW 42.07 City Vehicle RepairlMaint Svcs:PW 50.00 City Vehicle RepairlMaint Svcs:TCSD 286.13 City Vehicle RepairlMaint Svcs:PW 84.27 City Vehicle RepairlMaint Svcs:PW 241.78 City Vehicle RepairlMaint Svcs:PW 255.61 City Vehicle RepairlMaint Svcs:PW 135.09 1,770.74 120457 1211312007 001171 ORIENTAL TRADING COMPANY Special event supplies:Brkfst wlSanta 335.05 INC misc supplies:teen pgrm 56.70 391.75 120458 12113/2007 010547 PARKS, RON Retirement Medical Payment 693.59 693.59 120459 12113/2007 002099 PASCOE MANAGEMENT LLP Dec restroom rental:old town 826.00 826.00 120460 12/1312007 001958 PERS LONG TERM CARE PERS Long Term Care Payment 305.56 305.56 PROGRAM 120461 1211312007 005820 PRE-PAID LEGAL SERVICES INC PrePaid Legal Services Payment 512.15 512.15 120462 12113/2007 000254 PRESS ENTERPRISE COMPANY Nov recruitment ads:human resources 793.28 793.28 INC 120463 1211312007 004529 QUAID TEMECULA HARLEY- Nov repairlmaint motorcycles:PD 3,123.58 3,123.58 DAVIDSON 120464 12113/2007 002012 RD O EQUIPMENT COMPANY Equip repair & maint:pw maint div 52836 528.36 120465 1211312007 002176 RANCHO CALIF BUS PK ASSOC Jan-Mar bus. park assoc. dues:Diza Rd 1,751.72 Jan-Mar bus. park assoc. dues:F.O.C. 1,051.03 Jan-Mar bus. park assoc. dues:City Hall 1,273.98 4,076.73 Page:B apChkLst Final Check List Page: 9 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120466 12113/2007 002072 RANCHO CALIF WATER DIST- Add't Fee:Old Twn Prjt:PW06-07 J#5616 1,200.00 1,200.00 FEES 120467 12113/2007 000262 RANCHO CALIF WATER DISTRICT Various RDA Water Meters 77.78 Various PW Water Meters 1,000.57 Various TCSD Water Meters 36,889.83 Various Fire Water Meters 483.39 Nov 01-05-11037-1 City Hall 575.61 Nov 01-05-11040-1 Maint Fac Expan 135.90 39,163.08 120468 1211312007 000271 RBF CONSULTING Oct prof srvcs:Old Town Infrastructure 3,587.84 Oct englldscp dsgn:sr79 corridor 37,109.74 40,697.58 120469 1211312007 004584 REGENCY LIGHTING Nov electrical supplies:City Facilities 1,043.16 1,04316 120470 12113/2007 002412 RICHARDS WATSON & GERSHON Oct 2007 legal services 166,491.49 166,491.49 120471 1211312007 000352 RIVERSIDE CO ASSESSOR Nov assessor maps:b&s dept 3.00 3.00 120472 12113/2007 003698 RIVERSIDE CO ECONOMIC 3rd Dist Forum: 1131/08 G.Roberts 35.00 35.00 120473 12113/2007 005785 RIVERSIDE CO EMS renew paramedic license: Robert Genn 50.00 50.00 120474 1211312007 000406 RIVERSIDE CO SHERIFFS DEPT 711-18107:law enforcement 743,732.30 811 6-911 210 7:law enforcement 1,130,988.21 1,874,720.51 120475 1211312007 001365 RIVERSIDE COUNTY OF renew permit:Theater/Library food carts 1,688.00 1,688.00 120476 1211312007 008739 ROSE CITY LABEL crime prevention stickers:Police 676.56 676.56 120477 1211312007 010336 ROSSINI, SUSAN Supervisory Skills Sem:11129:El Cajon 71.85 71.85 120478 12113/2007 007582 SAFEGUARD DENTAL & VISION SafeGuard Vision Plan Payment 1,093.33 1,093.33 120479 12/1312007 000524 SAFETYLINE INC safety uniforms:pw land dev 103.35 103.35 120480 1211312007 006815 SAN DIEGO, COUNTY OF Support Payment Account # 581095025 12.50 12.50 120481 1211312007 006176 SANTA ANA COLLEGE Prev 2C trng 1114-18108 E.Wigle 150.00 150.00 Page9 apChkLst Final Check List Page: 10 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120482 12113/2007 006176 SANTA ANA COLLEGE Prev 2C trng 1114-18108 L. Larson 150.00 150.00 120483 12/1312007 010089 SECURITAS SECURITY SRVCS 11123-29/07 security srvcs:stn 95 1,499.20 USA 5/11-17107 security srvcs:stn 95 1,33835 2,837.55 120484 1211312007 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment: Payment 378.49 378.49 120485 1211312007 008529 SHERIFF'S CIVIL DIV - CENTRAL Support Payment LO File # 2007052618 100.00 100.00 120486 1211312007 009213 SHERRY BERRY MUSIC Jazz @ the Merc 1216107 178.50 178.50 120487 1211312007 001544 SKANSKA USA CIVIL WEST 5% retention requirement 3,931.55 Nov prgs pmt 12:Educ. Ctr rough grading 70,768.03 74,699.58 120488 12113/2007 011628 SLAP'N LEATHER reimb:Fac Imprv Prgm/deposit 2,500.00 2,500.00 120489 12113/2007 000645 SMART & FINAL INC misc supplies:Team PACE events 120.12 holiday event:high hopes Tksgiving 277.17 misc supplies:commission/tcsd mtgs 69.27 466.56 120490 1211312007 000537 SO CALIF EDISON Dec 2-02-351-5281 CRC 4,519.61 Dec 2-28-171-2620 Police Mall Stn 444.85 Dec 2-29-953-8447 Wolf Vly 44.19 Dec 2-20-798-3248 C. Museum 926.19 Dec 2-10-331-2153 TCC 733.20 Dec 2-01-202-7603 arterial st lights 23,368.46 Dec 2-01-202-7330 various mtrs 63,673.74 Dec 2-29-479-2981 Hghwy 79S 118.56 93,828.80 120491 1211312007 007762 STANDARD OF OREGON Mandatory Life Insurance Payment 10,895.30 10,895.30 120492 1211312007 008337 STAPLES BUSINESS misc office supplies:history museum 457.99 457.99 ADVANTAGE 120493 1211312007 003000 STATE WATER RESOURCES permit:WPN:18-2007015.02:kschwall 545.00 545.00 120494 12113/2007 008023 STATER BROTHERS MARKETS rfrshmnts:Event dinner w/fire fighters 40.65 40.65 120495 12113/2007 011341 STEARNS, CONRAD & SCHMIDT Sep consult srvcs: EIR hospital prof 2,212.00 2,212.00 120496 12113/2007 003840 STRONGS PAINTING painting srvcs:cabinets/FOC 500.00 500.00 Page:10 apChkLst Final Check List Page: 11 12/1312007 9:38:54AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120497 12113/2007 000305 TARGET BANK BUS CARD SRVCS misc. supplies:holiday parade event 16.11 16.11 120498 1211312007 001547 TEAMSTERS LOCAL 911 Union Dues Payment 5,238.00 5,238.00 120499 1211312007 000312 TEMECULA VALLEY PLAYHOUSE Christmas Carol settlement 11119-1219 19,037.74 19,037.74 120500 1211312007 000316 THORNHILL, GARY Retirement Medical Payment 719.20 719.20 120501 1211312007 007433 TOVEY SHULTZ CONSTRUCTION Oct prgs pmt 15: Field Oper Center 119,251.65 119,251.65 INC 120502 12113/2007 011627 TRACZYK, DIANE refund:holiday light parade/4443.201 25.00 25.00 120503 12113/2007 003031 TRAFFIC CONTROL SERVICE INC Trffc cntrl safety devices:PW Mntc 3,991.75 3,991.75 120504 12113/2007 007766 UNDERGROUND SERVICE ALERT Underground cable/utility flags 451.20 451.20 120505 12113/2007 000325 UNITED WAY United Way Charities Payment 73.00 73.00 120506 12113/2007 004261 VERIZON Decxxx-1341 Theater 404.96 Dec xxx-1941 PTA CD TTACSD 66.12 Dec xxx-3910 1st St Irrigation 35.85 Nov xxx-1540 Old Town Prk Lot 89.48 Nov xxx-6620 general usage 31.72 Nov xxx-7530 GIS Library 400.74 Novxxx-5180 79S Irrg Cntr 35.85 Novxxx-8900 GIS Library 738.14 1,802.86 120507 12113/2007 004279 VERIZON CALIFORNIA INC. Nov access-(EQN) C. Mus.phone line 656.45 Nov access-(E05) CRC phone line 355.20 1,011.65 120508 1211312007 010245 VILLA, DOLORES Retirement Medical Payment 557.10 557.10 120509 1211312007 005804 WELLS FARGO BANK purchase gift cards:hoiiday raffle 2,530.00 2,530.00 120510 1211312007 000621 WESTERN RIVERSIDE COUNCIL Nov 2007 TUMF Payment 50,889.06 50,889.06 OF 120511 121312007 011372 WHIPPLE, CURTIS DJ services for holiday event 12115 995.00 995.00 Page:11 apChkLst 12/13/2007 9:38:54AM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 120512 12113/2007 011623 WOODS, TELECIA Final Check List CITY OF TEMECULA (Continued) Description refund:holiday light paradet4443.201 Amount Paid 25.00 Grand total for UNION BANK OF CALIFORNIA: Page: 12 Check Total 25.00 3,667,494.95 Page:12 apChkLst Final Check List Page: 13 12/1312007 9:38:54AM CITY OF TEMECULA 164 checks in this report. Grand Total All Checks: 3,667,494.95 Page:13 apChkLst 12114/2007 11:13:51AM Final Check List CITY OF TEMECULA Page: 1 Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 120514 1211412007 011585 27511 YNEZ ROAD CFD 8&12 Reimb:APN 921270055 29,784.84 CFD 88-12 Reimb:APN 921260026 3,359.56 33,144.40 120515 12/14/2007 001862 ADVANCED CARDIOVASCULAR CFD 8&12 Reimb:APN 921680023 14,913.36 SYSTEM CFD 88-12 Reimb:APN 921680021 3,201.30 CFD 88-12 Reimb:APN 921720015 52,399.26 CFD 8&12 Reimb:APN 921680020 17,616.71 CFD 8&12 Reimb:APN 921680024 16,032.16 104,162.79 120516 12/1412007 004632 AIRD, ELIZABETH OTTILIE CFD 8&12 Reimb:APN 921291005 200.56 200.56 120517 1211412007 008169 ALBARRAN, JAVIER CFD 8&12 Reimb:APN 910342017 250.70 250.70 120518 1211412007 005496 ALCALA, JOSE T. CFD 88-12 Reimb:APN 910372022 626.78 626.78 120519 12114/2007 004331 ALLEN, CAROLYN, A. CFD 88-12 Reimb:APN 921292027 200.56 200.56 120520 12/1412007 005530 AMADOR, PETER CFD 8&12 Reimb:APN 921291030 200.56 200.56 120521 12114/2007 011452 ANDERSON PROPERTIES CFD 8&12 Reimb:APN 921291018 200.56 200.56 120522 12114/2007 004633 ANDERSON, LEO 0. CFD 88-12 Reimb:APN 910362003 325.92 325.92 120523 1211412007 011557 ANDRE TRUST & ANTO CFD 88-12 Reimb:APN 910353057 351.00 351.00 120524 12114/2007 005435 ARCE, CEASAR R. CFD 88-12 Reimb:APN 910352017 275.78 275.78 120525 1211412007 006821 ARGU ETA, LUIS A. CFD 8&12 Reimb:APN 910342002 250.70 250.70 120526 12/1412007 009220 ASCENCIO, TODAN CFD 8&12 Reimb:APN 910341002 275.78 275.78 120527 12114/2007 001823 ATKINSON, DAVID MICHAEL CFD 88-12 Reimb:APN 921292041 200.56 200.56 120528 1211412007 001740 ATWOOD & ANDREWS CFD 88-12 Reimb:APN 921720006 12,109.50 DEVELOPMENT CFD 8&12 Reimb:APN 921680003 5,059.41 17,168.91 120529 1211412007 004321 AVILA, NICOLAS CFD 88-12 Reimb:APN 921291068 200.56 200.56 Page:1 apChkLst 12/1412007 11:13: 51AM Final Check List CITY OF TEMECULA Page: 2 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120530 12114/2007 011558 AYKOL, HASAN CFD 88-12 Reimb:APN 910341028 1,052.23 1,052.23 120531 12/14/2007 008171 AZEVEDO, MICHAEL V. CFD 88-12 Reimb:APN 921750009 1,704.86 1,704.86 120532 1211412007 006824 B P WEST COAST PRODUCTS, CFD 88-12 Reimb:APN 921270048 2,080.92 2,080.92 LLC 120533 1211412007 010711 BACON, DONALD CFD 88-12 Reimb:APN 910353044 401.14 401.14 120534 12114/2007 008231 BAGINGITO, ALWIN CFD 88-12 Reimb:APN 921831004 200.56 200.56 120535 12114/2007 004635 BALES, LARRY CFD 88-12 Reimb:APN 921292047 200.56 200.56 120536 1211412007 001168 BANK OF AMERICA CFD 88-12 Reimb:APN 921260025 2,482.06 2,482.06 120537 1211412007 010712 BANTUM, MELVIN CFD 88-12 Reimb:APN 910353019 275.78 275.78 120538 12/14/2007 006823 BARRERA, MAURICIO CFD 88-12 Reimb:APN 910342007 250.70 250.70 120539 12114/2007 009221 BEAL, STEVEN M. CFD 88-12 Reimb:APN 921831009 200.56 200.56 120540 12114/2007 006973 BECHLER, BARRY M. CFD 88-12 Reimb:APN 921291017 200.56 200.56 120541 1211412007 009222 BENECCHI, MICHAEL A. CFD 88-12 Reimb:APN 921292031 200.56 200.56 120542 1211412007 004637 BENTLEY, WESLEY A. CFD 88-12 Reimb:APN 910342041 300.86 300.86 120543 12114/2007 009223 BITTNER, ANTON CFD 88-12 Reimb:APN 910351009 325.92 325.92 120544 12114/2007 011560 BITTNER, SUSAN CFD 88-12 Reimb:APN 921291022 200.56 200.56 120545 12114/2007 010699 BOONE, JASON & SARA CFD 88-12 Reimb:APN 910342030 476.36 476.36 120546 1211412007 008174 BOTROS, NABIL CFD 88-12 Reimb:APN 910351006 300.86 300.86 120547 1211412007 009224 BOWDEN. PAUL E. CFD 88-12 Reimb:APN 910352015 275.78 275.78 Page2 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 3 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120548 12114/2007 011469 BOYD, GLEN & KATHLEEN CFD 88-12 Reimb:APN 921291024 200.56 200.56 120549 12/14/2007 011470 BRANDON, ELIZABETH CFD 88-12 Reimb:APN 921291051 200.56 200.56 120550 1211412007 005541 BRIONES, RUBEN CFD 88-12 Reimb:APN 910341006 300.86 300.86 120551 12114/2007 004641 BROTTEN, MICHAEL CFD 88-12 Reimb:APN 910342028 300.86 300.86 120552 1214/2007 005437 BROWN, CHRISTOPHER CFD 88-12 Reimb:APN 910352003 275.78 275.78 MICHAEL 120553 12114/2007 008176 BUBELA, CHRISTOPHER CFD 88-12 Reimb:APN 910352013 275.78 275.78 120554 1211412007 006975 BURKE, MICHAEL W. CFD 88-12 Reimb:APN 921831001 200.56 200.56 120555 1211412007 009225 BURKE, TIMOTHY M. CFD 88-12 Reimb:APN 921290010 12,585.84 12,585.84 120556 12/14/2007 006976 BUTLER, JOSEPH CFD 88-12 Reimb:APN 910341032 275.78 275.78 120557 12114/2007 011471 CALDERON, JOSE JUAN CFD 88-12 Reimb:APN 910353023 275.78 275.78 120558 12114/2007 005550 GALLERY, STEPHEN P. CFD 88-12 Reimb:APN 910352016 275.78 275.78 120559 1211412007 011472 CAMPBELL, TRAVIS CFD 88-12 Reimb:APN 921292037 200.56 200.56 120560 1211412007 005542 CAPACIA, RUEL V. CFD 88-12 Reimb:APN 910352018 275.78 275.78 120561 12114/2007 010698 CARDENAS, GRACIELA CFD 88.12 Reimb:APN 921292021 200.56 200.56 120562 12114/2007 005502 CARDENTE, KENNETH CFD 88-12 Reimb:APN 910353016 275.78 275.78 120563 12114/2007 005491 CARLISLE, JOHNIE CFD 88-12 Reimb:APN 921292006 200.56 200.56 120564 1211412007 010695 CARMOUCHE, STANLEY CFD 88-12 Reimb:APN 921292035 200.56 200.56 120565 1211412007 006826 CARTER, JONATHAN P. CFD 88-12 Reimb:APN 910342003 250.70 250.70 Page3 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 4 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120566 12114/2007 009228 CASTANEDA, EDGAR CFD 88-12 Reimb:APN 910342005 250.70 250.70 120567 12/14/2007 006827 CASTRO, JUDY CFD 88-12 Reimb:APN 910342034 250.70 250.70 120568 1211412007 010696 CATALAN, UBALDO CUE CFD 88-12 Reimb:APN 910353033 300.86 300.86 120569 12114/2007 009229 CERDA, SEBASTIAN S. CFD 88-12 Reimb:APN 921831010 200.56 200.56 120570 1214/2007 005520 CHAFFIN, MATTHEW PAUL CFD 88-12 Reimb:APN 910352014 275.78 275.78 120571 1211412007 008177 CHENG FAMILY PARTNERSHIP CFD 88-12 Reimb:APN 910320025 6,267.86 6,267.86 120572 1211412007 009230 CHOI, JOANNE C. CFD 88-12 Reimb:APN 921292016 200.56 200.56 120573 1211412007 003882 CHRIST THE VINE LUTHERAN CFD 88-12 Reimb:APN 921830035 8,073.00 8,073.00 CHRCH 120574 12/14/2007 009231 CHRISTENSEN, CRAIG R. CFD 88-12 Reimb:APN 910351007 300.86 300.86 120575 12114/2007 005438 CHURCH OF JESUS CHRIST OF CFD 88-12 Reimb:APN 921810006 13,588.70 13,588.70 LDS 120576 12114/2007 004650 CLARKE, RONALD M. CFD 88-12 Reimb:APN 910362001 325.92 325.92 120577 12114/2007 010713 CLAUDIO, HEREL B CFD 88-12 Reimb:APN 910341020 351.00 351.00 120578 1211412007 004651 CLONTS, SAM OWEN CFD 88-12 Reimb:APN 910341008 451.28 451.28 120579 12114/2007 005635 CNL FUNDING 2000 A CFD 88-12 Reimb:APN 910320033 2,933.36 2,933.36 120580 1211412007 004652 COHN, STEPHEN R. CFD 88-12 Reimb:APN 921292001 200.56 200.56 120581 12114/2007 007005 COLEMAN, WANDA J. CFD 88-12 Reimb:APN 921291049 200.56 200.56 120582 12114/2007 004329 COSTCO WHOLESALE GROUP CFD 88-12 Reimb:APN 921810013 1,228.50 CFD 88-12 Reimb:APN 921810014 33,470.34 CFD 88-12 Reimb:APN 921810015 4,487.78 CFD 88-12 Reimb:APN 921810016 3,108.86 42,295.48 Page-.4 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 5 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120583 12114/2007 009232 COT INV CFD 88-12 Reimb:APN 921750003 3,184.06 3,184.06 120584 12/14/2007 002154 CRANNEY, KAREN A. CFD 88-12 Reimb:APN 921291074 200.56 200.56 120585 1211412007 010697 CRATSLEY, MELVIN V CFD 88-12 Reimb:APN 921291010 200.56 200.56 120586 12114/2007 009233 CRAWFORD, NELVA CFD 88-12 Reimb:APN 921291061 200.56 200.56 120587 12114/2007 011587 CREEKSIDE RETAIL I CFD 88-12 Reimb:APN 921810032 16,533.82 16,533.82 120588 1211412007 010683 CROWE, HEIDI M. CFD 88-12 Reimb:APN 921291036 200.56 200.56 120589 1211412007 011473 DAI CHEN, PENG CFD 88-12 Reimb:APN 910361002 351.00 351.00 120590 1211412007 005431 DAVIS, BARBARA W. CFD 88-12 Reimb:APN 910372021 476.36 476.36 120591 12114/2007 006978 DAVIS, GABRIEL CFD 88-12 Reimb:APN 921291013 200.56 200.56 120592 1211412007 005476 DAVIS, GLORIA JUNE CFD 88-12 Reimb:APN 910353026 275.78 275.78 120593 1211412007 008180 DAVIS, NINA PAULINE CFD 88-12 Reimb:APN 921291080 200.56 200.56 120594 12/14/2007 009234 DAVIS, THOMAS A. CFD 88-12 Reimb:APN 921291076 200.56 200.56 120595 1211412007 011474 DCH INV INC CFD 88-12 Reimb:APN 921730071 2,507.14 CFD 88-12 Reimb:APN 921730008 2,482.06 CFD 88-12 Reimb:APN 921720008 1,328.78 CFD 88-12 Reimb:APN 921720009 4,011.42 CFD 88-12 Reimb:APN 921730068 3,710.56 CFD 88-12 Reimb:APN 921730040 3,259.28 CFD 88-12 Reimb:APN 921730069 4,989.20 CFD 88-12 Reimb:APN 921680004 4,429.05 CFD 8&12 Reimb:APN 921730067 4,412.56 CFD 8&12 Reimb:APN 921720013 6,919.70 CFD 88-12 Reimb:APN 921720012 6,217.70 CFD 88-12 Reimb:APN 921720011 6,117.42 CFD 88-12 Reimb:APN 921730065 18,026.34 CFD 8&12 Reimb:APN 921720001 10,956.20 CFD 88-12 Reimb:APN 921730070 9,953.34 89,320.75 Pages apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 6 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120596 12114/2007 006980 DEESE, DANIEL CFD 88-12 Reimb:APN 910341011 275.78 275.78 120597 12/14/2007 006830 DEFELICE, JOSEPH CFD 88-12 Reimb:APN 910341023 451.28 451.28 120598 1211412007 001735 DEL TACO RESTAURANT PROP III CFD 88-12 Reimb:APN 921260024 2,181.20 2,181.20 120599 1211412007 005474 DELAMATER, GERALD E. CFD 88-12 Reimb:APN 910353046 250.70 250.70 120600 12114/2007 005645 DELARIVA, LINDA A CFD 88-12 Reimb:APN 921291002 200.56 200.56 120601 12114/2007 008182 DELCONTE, KAREEN E. CFD 88-12 Reimb:APN 921292004 200.56 200.56 120602 1211412007 011475 DELGADO, DENNIS M. CFD 88-12 Reimb:APN 921291031 200.56 200.56 120603 1211412007 008232 DESCHAUWER, JACQUES CFD 88-12 Reimb:APN 921292013 200.56 200.56 120604 12/14/2007 006831 DESENS, JOHN C. CFD 88-12 Reimb:APN 910353010 275.78 275.78 120605 12114/2007 003412 DIAZ, AUSENCIO CFD 88-12 Reimb:APN 921291052 200.56 200.56 120606 12114/2007 010634 DIEGO DEV CFD 88-12 Reimb:APN 921730064 11,858.78 11,858.78 120607 1211412007 004656 DITTMAN, JAMES H. CFD 88-12 Reimb:APN 910342011 325.92 325.92 120608 1211412007 011476 DIVERSIFIED INV COMPANY CFD 88-12 Reimb:APN 910470032 3,234.20 3,234.20 120609 12114/2007 005636 DOLLARD, DARREN W. CFD 88.12 Reimb:APN 910342045 401.14 401.14 120610 12114/2007 008184 DOMINGUEZ, CLAUDIO CFD 88-12 Reimb:APN 910353043 451.28 451.28 120611 12114/2007 005508 DOUGHTY, LINDA S. CFD 88-12 Reimb:APN 921291039 200.56 200.56 120612 1211412007 006981 DOUGLAS, PAUL CFD 88-12 Reimb:APN 910342032 351.00 351.00 120613 1211412007 006833 DU. LETICIA CFD 88-12 Reimb:APN 921831006 200.56 200.56 Page.6 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 7 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120614 12114/2007 009238 DUNFORD, DANIEL R. CFD 88-12 Reimb:APN 921291042 200.56 200.56 120615 12/14/2007 009239 DUNLAP, VIRGINIA L. CFD 88-12 Reimb:APN 910361004 351.00 351.00 120616 1211412007 006834 DURAN, JOSE EDUARDO CFD 88-12 Reimb:APN 910342004 250.70 250.70 120617 12114/2007 005466 DURNIL, DONALD T. CFD 88-12 Reimb:APN 910353055 576.64 576.64 120618 12114/2007 004658 EASTWOOD, GREGORY D. CFD 88-12 Reimb:APN 910341004 1,147.90 1,147.90 120619 1211412007 006818 EMAN, AFFAN CFD 88-12 Reimb:APN 921291029 200.56 200.56 120620 1211412007 003889 EMMER, JEAN M. CFD 88-12 Reimb:APN 921291028 200.56 200.56 120621 1211412007 002589 ESBENSEN, PHILIP G CFD 88-12 Reimb:APN 921720010 1,378.92 1,378.92 120622 12114/2007 009240 FANG, LINA CFD 88-12 Reimb:APN 910362004 300.86 300.86 120623 1211412007 006835 FARKAS, FERENC CFD 88-12 Reimb:APN 910341022 576.64 576.64 120624 1211412007 011561 FERNANDEZ, ALFREDO CFD 88-12 Reimb:APN 910353054 401.14 40114 120625 12/14/2007 009241 FERRIERA, RICHARD D. CFD 88-12 Reimb:APN 921292011 200.56 200.56 120626 1211412007 009242 FERRO, MARIO CFD 88-12 Reimb:APN 910353017 275.78 275.78 120627 12114/2007 006837 FIFTY FIRST STREET CFD 88-12 Reimb:APN 910320035 3,008.56 3,008.56 120628 12114/2007 008187 FILLER, BRIAN CFD 88-12 Reimb:APN 921291012 200.56 200.56 120629 1211412007 011562 FILIPPINI, ANGELO CFD 88-12 Reimb:APN 921291032 200.56 200.56 120630 1211412007 005553 FISHER, THOMAS W. CFD 88-12 Reimb:APN 910364003 877.50 877.50 120631 1211412007 010687 FLORI, KENNETH L CFD 88-12 Reimb:APN 910353035 300.86 300.86 Page.7 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 8 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120632 12114/2007 008188 FOWLER, FREDDIE E. CFD 88-12 Reimb:APN 910353042 526.50 526.50 120633 12/14/2007 009243 FRAZIER, DARYN CFD 88-12 Reimb:APN 921292003 200.56 200.56 120634 1211412007 004661 FREET, LLOYD N. CFD 88-12 Reimb:APN 910342012 300.86 300.86 120635 12114/2007 011563 GANOFF, MICHAEL C CFD 88-12 Reimb:APN 910353052 300.86 300.86 120636 1214/2007 005428 GARCIA, ANTHONY P. CFD 88-12 Reimb:APN 910353031 300.86 300.86 120637 1211412007 009244 GARCIA, BRIZ BREMAUNTZ CFD 88-12 Reimb:APN 910353045 300.86 300.86 120638 1211412007 009245 GELLES, PAUL M. CFD 88-12 Reimb:APN 910353024 275.78 275.78 120639 1211412007 006839 GHASEMIAN, JAVID CFD 88-12 Reimb:APN 910353004 526.50 526.50 120640 12114/2007 009246 GIALLOMBARDO, DOMINICK CFD 88-12 Reimb:APN 921291033 200.56 200.56 120641 1211412007 005441 GILLMAN, CRAIG W. CFD 88-12 Reimb:APN 921291048 200.56 200.56 120642 1211412007 004664 GIVANT, FRED R. CFD 88-12 Reimb:APN 910341033 275.78 275.78 120643 12/14/2007 003893 GLOBAL HOTEL NETWORK INC CFD 88-12 Reimb:APN 944330019 3,484.92 3,484.92 120644 1211412007 011483 GOLDBERG, TED CFD 88-12 Reimb:APN 921320062 1,629.64 1,629.64 120645 12114/2007 009247 GOMES, COREY J. CFD 88-12 Reimb:APN 910353053 325.92 325.92 120646 1214/2007 009248 GOMEZ, ROBERT CFD 88-12 Reimb:APN 910342035 250.70 250.70 120647 1211412007 006983 GONZALEZ, CARLOS CFD 88-12 Reimb:APN 921292020 200.56 200.56 120648 1211412007 005545 GONZALEZ, SAL CFD 88-12 Reimb:APN 921291016 200.56 200.56 120649 1211412007 006840 GOODMAN, JAMES R. CFD 88-12 Reimb:APN 910353001 526.50 526.50 Page:B apChkLst 12/1412007 11:13:51AM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 120650 12114/2007 006841 GORDON HOLDINGS 120651 12/14/2007 006842 GORDON HOLDINGS 120652 1211412007 004665 GRAHAM, CAROL A. 120653 12114/2007 004667 GRANADOS, DAVID A. 120654 12114/2007 004668 GREENLEE, MICHAEL 120655 1211412007 006844 GREGORY, ROBERT C. 120656 1211412007 120657 12114/2007 120658 12114/2007 120659 12114/2007 120660 12/14/2007 120661 12114/2007 120662 12114/2007 120663 12114/2007 120664 12114/2007 120665 12/14/2007 120666 1211412007 120667 12114/2007 004333 011564 004670 004334 004672 008189 002961 006850 006852 005560 010708 011484 GRIFFITH, PAUL JON GRIMSHAW, DAVID RIC GUARANTY FEDERAL BANK GUPTA, ASHOK K. HAGBERG, PHILLIP K. HALL, KEVIN R. HALLIGAN, MARCIA A. HANA, MANAL A. HAYES, DIANE K. HEATH, WILLIAM M. HEISS, LINDA D HENRICKSEN C. & OGO T. Final Check List CITY OF TEMECULA Page: 9 (Continued) Description Amount Paid Check Total CFD 88-12 Reimb:APN 921680012 945.52 945.52 CFD 88-12 Reimb:APN 921680013 7,947.64 7,947.64 CFD 88-12 Reimb:APN 910341005 275.78 275.78 CFD 88-12 Reimb:APN 910351005 300.86 300.86 CFD 88-12 Reimb:APN 910342021 676.92 676.92 CFD 88-12 Reimb:APN 921290009 13,967.31 CFD 88-12 Reimb:APN 921750011 2,682.64 16,649.95 CFD 88-12 Reimb:APN 921291038 200.56 200.56 CFD 88-12 Reimb:APN 921292030 200.56 200.56 CFD 88-12 Reimb:APN 910330013 2,532.20 2,532.20 CFD 88-12 Reimb:APN 910320041 2,507.14 2,507.14 CFD 88-12 Reimb:APN 910342018 325.92 325.92 CFD 88-12 Reimb:APN 910353041 325.92 325.92 CFD 88-12 Reimb:APN 921270043 2,757.86 2,757.86 CFD 88-12 Reimb:APN 910353003 451.28 451.28 CFD 88-12 Reimb:APN 910353005 551.56 551.56 CFD 88-12 Reimb:APN 910352008 275.78 275.78 CFD 88-12 Reimb:APN 921291034 200.56 200.56 CFD 88-12 Reimb:APN 921291040 200.56 200.56 Page9 apChkLst Final Check List Page: 10 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120668 12114/2007 009249 HERRON, SCOTT CFD 88-12 Reimb:APN 921831012 200.56 200.56 120669 12/14/2007 004675 HESS, MATTHEW T. CFD 88-12 Reimb:APN 910342022 501.42 501.42 120670 1211412007 009250 HOBBS, LEILANI M. CFD 88-12 Reimb:APN 921292023 200.56 200.56 120671 12114/2007 011485 HOME SAVINGS OF AMERICA CFD 88-12 Reimb:APN 910300002 1,579.50 1,579.50 120672 12114/2007 003896 HONORE, PATTI A. CFD 88-12 Reimb:APN 921291011 200.56 200.56 120673 1211412007 011565 HOPE, WILLIAM CFD 88-12 Reimb:APN 921291065 200.56 200.56 120674 1211412007 005535 HOUGHTALING, RICHARD JAMES CFD 88-12 Reimb:APN 910341018 275.78 275.78 120675 1211412007 005469 HUGAERT, EUGENE CFD 88-12 Reimb:APN 910353015 275.78 275.78 120676 12/14/2007 010690 HUNTER, CHRISTOPHER CFD 88-12 Reimb:APN 910352006 275.78 275.78 120677 12114/2007 011586 INLAND WESTERN MDS CFD 88-12 Reimb:APN 910300012 15,769.92 15,769.92 120678 12114/2007 010636 INLAND WESTERN TEMECULA CFD 88-12 Reimb:APN 910470006 2,030.78 CFD 8&12 Reimb:APN 910470004 952.70 CFD 8&12 Reimb:APN 910470001 2,582.36 CFD 88-12 Reimb:APN 910470014 2,406.86 CFD 8&12 Reimb:APN 910470005 2,256.42 CFD 88-12 Reimb:APN 910470015 45,429.40 CFD 88-12 Reimb:APN 910470002 3,961.28 CFD 88-12 Reimb:APN 910470003 3,058.70 62,678.50 120679 12114/2007 008192 TREY, STEPHANIE S. CFD 88-12 Reimb:APN 910342042 325.92 325.92 120680 1211412007 003897 J C PENNEY PROPERTIES INC CFD 88-12 Reimb:APN 910420011 22,890.20 22,890.20 120681 1211412007 009253 JARBOE, PATRICIA L. CFD 88-12 Reimb:APN 921292025 200.56 200.56 120682 12/1412007 010670 JHCH REDLANDS LAND CFD 88-12 Reimb:APN 921730066 9,276.42 9,276.42 Page:10 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 11 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120683 12114/2007 009254 JIMENEZ, CFD 88-12 Reimb:APN 910352019 275.78 275.78 ADRIANA&CASTELLON,REGINAL 120684 1211412007 004685 JOHNSON, CHRISTEEN L. CFD 88-12 Reimb:APN 910342043 325.92 325.92 120685 12/14/2007 001775 JOHNSTON, JOSEPH R. CFD 88-12 Reimb:APN 921291078 200.56 200.56 120686 12114/2007 005733 JONES, EDWARD CFD 88-12 Reimb:APN 921291062 200.56 200.56 120687 12114/2007 003898 JRAKK PROPERTIES CFD 88-12 Reimb:APN 921750002 2,106.00 CFD 88-12 Reimb:APN 921750001 1,805.14 3,911.14 120688 12114/2007 002594 JUBANY, LUIS CFD 88.12 Reimb:APN 921291079 200.56 200.56 120689 1211412007 004686 KAISERMAN, DONALD TR CFD 88-12 Reimb:APN 944290015 28,556.34 NORRIS & CFD 88-12 Reimb:APN 944290016 21,987.64 CFD 88-12 Reimb:APN 944290017 20,032.06 70,576.04 120690 1211412007 005499 KELLER, KARL HEINZ CFD 88-12 Reimb:APN 921270044 1,855.28 1,855.28 120691 1211412007 006856 KERETA, JOSEPH A. CFD 88-12 Reimb:APN 910341024 351.00 351.00 120692 12114/2007 004342 KHOURY, ALICE MARIE CFD 88-12 Reimb:APN 921292007 200.56 200.56 120693 12/14/2007 005484 KIESAU, JEFFREY D. CFD 88-12 Reimb:APN 910363003 551.56 551.56 120694 1211412007 004688 KILMER, WALTER L. CFD 88-12 Reimb:APN 910342046 877.50 877.50 120695 1211412007 011566 KIM, DEUKSHIN CFD 88-12 Reimb:APN 910342015 275.78 275.78 120696 1214/2007 003900 KIMCO PALM PLAZA CFD 88-12 Reimb:APN 910300005 2,808.00 CFD 88-12 Reimb:APN 910300010 2,532.20 CFD 88-12 Reimb:APN 910300006 2,231.36 CFD 88-12 Reimb:APN 910300018 33,169.48 CFD 88-12 Reimb:APN 910300014 22,112.98 CFD 88-12 Reimb:APN 910300011 3,735.64 66,589.66 120697 1211412007 006857 KIMCO PALM PLAZA & CFD 88-12 Reimb:APN 910300016 16,120.92 16,120.92 120698 1211412007 008197 KINSEY, JONATHAN E. CFD 88-12 Reimb:APN 910362005 25070 250.70 Page:11 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 12 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120699 12114/2007 006987 KLETTER, MINDYS. CFD 88-12 Reimb:APN 921292026 200.56 200.56 120700 12/14/2007 006859 KODAMA, JAY MASANOR CFD 88-12 Reimb:APN 910352022 300.86 300.86 120701 1211412007 005536 KORALEWSKI, RICHARD P. CFD 88-12 Reimb:APN 910353051 300.86 300.86 120702 12114/2007 004689 KRUSE, DAVID EDWARD CFD 88-12 Reimb:APN 910342024 325.92 325.92 120703 12114/2007 011532 L D R E CFD 88-12 Reimb:APN 921750014 3,886.06 3,886.06 120704 1211412007 005556 LANDEROS, VERONICA CFD 88-12 Reimb:APN 910353039 626.78 626.78 120705 1211412007 009256 LANDON, BRAD J. & GONZALEZ, CFD 88-12 Reimb:APN 921292034 200.56 200.56 ALEX 120706 1211412007 005513 LARA, MANUEL ENRIQUE CFD 88-12 Reimb:APN 910353030 351.00 351.00 120707 12/14/2007 006989 LARSEN, DOUGLAS F. CFD 88-12 Reimb:APN 921831005 200.56 200.56 120708 12114/2007 006861 LARSON, JASON ROY CFD 88-12 Reimb:APN 910342001 225.64 225.64 120709 12114/2007 009257 LAWLOR, JOSEPH CFD 88-12 Reimb:APN 921831011 200.56 200.56 120710 1211412007 004691 LEAVERTON, ROBERT M. CFD 88-12 Reimb:APN 921291041 200.56 200.56 120711 1211412007 009258 LEE, EDMUND & HU, LINDA CFD 88-12 Reimb:APN 910342037 325.92 325.92 120712 12114/2007 006862 LEGASSA, RICHARD L. CFD 88-12 Reimb:APN 910341026 275.78 275.78 120713 12114/2007 009259 LEMAUGA, LEE CFD 88-12 Reimb:APN 921291014 200.56 200.56 120714 12114/2007 003417 LEMKE, HERMAN GP & CFD 88-12 Reimb:APN 921270050 4,362.42 4,362.42 TABER,WILLIAM 120715 12114/2007 009260 LEONHARDI, RYAN A. CFD 88-12 Reimb:APN 910341016 250.70 250.70 120716 12114/2007 004692 LESUEUR, DANIEL J. CFD 88-12 Reimb:APN 910342036 250.70 250.70 Page:12 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 13 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120717 12114/2007 010710 LEVI, SOHEIL P & MA CFD 88-12 Reimb:APN 910320037 1,830.20 1,830.20 120718 12/14/2007 005497 LEYDON, KAREN A. CFD 88-12 Reimb:APN 921292032 200.56 200.56 120719 1211412007 009262 LIM, HANS & SANDRA CFD 88-12 Reimb:APN 921292015 200.56 200.56 120720 12114/2007 008198 LIN, XINWEI & GAO, JIANXIN CFD 88-12 Reimb:APN 910353022 275.78 275.78 120721 1214/2007 004693 LIVELY, HSIAO LIN JEN CFD 88-12 Reimb:APN 910342039 300.86 300.86 120722 1211412007 011568 LLIESCU, MARIUS V CFD 88-12 Reimb:APN 921291006 200.56 200.56 120723 1211412007 010692 LOPEZ, ARTEMIO MORALES CFD 88-12 Reimb:APN 910342010 300.86 300.86 120724 1211412007 002965 LOPEZ, ELISA MARIE CFD 88-12 Reimb:APN 921291077 200.56 200.56 120725 12114/2007 011083 LOPEZ, MARIA CFD 88-12 Reimb:APN 910363019 576.64 576.64 120726 1211412007 004696 LOPEZ, RAMON CFD 88-12 Reimb:APN 910361005 401.14 401.14 120727 1211412007 006863 LOPEZ, RAYMOND SOL CRUZ CFD 88-12 Reimb:APN 910353009 275.78 275.78 120728 12/14/2007 003432 LOVE, PATRICIA B CFD 88-12 Reimb:APN 921291027 200.56 200.56 120729 1211412007 010709 LOWE, KATHLEEN CFD 88-12 Reimb:APN 910342019 325.92 325.92 120730 12114/2007 009263 LOWES HIW INC CFD 88-12 Reimb:APN 910330011 40,690.92 40,690.92 120731 12114/2007 009264 LUEVANO, ALFREDO CFD 88-12 Reimb:APN 910353050 325.92 325.92 120732 1211412007 011569 LUNDQUIST, ERIC B CFD 88-12 Reimb:APN 921292046 200.56 200.56 120733 1211412007 005422 LUPERCIO, ABRAHAM A. CFD 88-12 Reimb:APN 910353013 275.78 275.78 120734 1211412007 009265 LYNCH, GILBERT CFD 88-12 Reimb:APN 921291082 200.56 200.56 Page:13 apChkLst Final Check List Page: 14 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120735 12114/2007 002619 M E G INVESTMENTS CFD 88-12 Reimb:APN 921730022 6,368.14 CFD 88-12 Reimb:APN 921730025 16,171.06 22,539.20 120736 1211412007 002619 M E G INVESTMENTS CFD 88-12 Reimb:APN 921730059 10,504.92 CFD 88-12 Reimb:APN 921730060 5,114.56 15,619.48 120737 12/1412007 005512 MACY'S CALIF INC CFD 88-12 Reimb:APN 910420010 30,612.20 CFD 88-12 Reimb:APN 910420006 17,800.70 CFD 88-12 Reimb:APN 910420009 8,950.50 57,363.40 120738 1211412007 005504 MAEHLER, KURT E. CFD 88-12 Reimb:APN 910353029 325.92 325.92 120739 12114/2007 009272 MAHMOOD, MUSTAFA CFD 88-12 Reimb:APN 910351008 300.86 300.86 120740 1211412007 010688 MAHMOOD, RAZIA CFD 88-12 Reimb:APN 910353018 275.78 275.78 120741 1211412007 004700 MANICHANH, SISOUVANH CFD 88-12 Reimb:APN 921291070 200.56 200.56 120742 12114/2007 004701 MANISCALCO, JOSEPH J. CFD 88-12 Reimb:APN 921292019 200.56 200.56 120743 1211412007 005464 MANOS, DIANE Y LIVING TRUST CFD 88-12 Reimb:APN 910352009 275.78 275.78 120744 12/14/2007 009276 MARQUEZ, RAUL CFD 88-12 Reimb:APN 921291047 200.56 200.56 120745 12/1412007 009277 MARSHALL, EDWARD C. CFD 88-12 Reimb:APN 921831008 200.56 200.56 120746 12/1412007 006864 MARTINEZ, CARMEN M. CFD 88-12 Reimb:APN 921291063 200.56 200.56 120747 120412007 003905 MARUSKA, JOHN H. & BROWN, CFD 88-12 Reimb:APN 921291056 200.56 200.56 DALE J. 120748 1211412007 008199 MAYFIELD, NIKKI L. CFD 88-12 Reimb:APN 921292022 200.56 200.56 120749 12114/2007 011493 MC KAY, MARTHA & SMITH, AL CFD 88-12 Reimb:APN 921291023 200.56 200.56 120750 12114/2007 004704 MCADAM, CONSTANCE J. CFD 88.12 Reimb:APN 910351003 325.92 325.92 120751 1211412007 010693 MCADAM, CONSTANCE JEAN CFD 88-12 Reimb:APN 921291081 200.56 200.56 120752 12/14/2007 011571 MCCLURE, MAYA A. & CLAUD CFD 88-12 Reimb:APN 921291067 200.56 200.56 Page:14 apChkLst Final Check List Page: 15 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120753 12114/2007 005529 MCKENDRICKS, PATRICIA LYNN CFD 88-12 Reimb:APN 910353020 275.78 275.78 120754 1211412007 005521 MCLEAN AUTOMOTIVE INC CFD 88-12 Reimb:APN 921290011 6,543.64 6,543.64 120755 1211412007 006993 MCMICHAEL, DANIEL JOHN CFD 88-12 Reimb:APN 910353037 426.20 426.20 120756 1211412007 009282 MEJIA, ESTANISLAO CFD 88-12 Reimb:APN 910363002 1,721.84 1,721.84 120757 12114/2007 004708 MICHAEL, MARIA CFD 88-12 Reimb:APN 910362002 325.92 325.92 120758 12114/2007 001774 MICHALEK, CHARLENE CFD 88-12 Reimb:APN 921291072 200.56 200.56 120759 1211412007 011572 MILLINGS, ANTHONY CFD 88-12 Reimb:APN 910351011 351.00 351.00 120760 1211412007 009284 MITTLEMAN, MICHAEL A. & HELD, CFD 88-12 Reimb:APN 910363018 601.70 60170 TIJANA 120761 1211412007 004346 MOORE, JOHN L CFD 88-12 Reimb:APN 921291001 200.56 200.56 120762 1214/2007 011573 MORALES, MICHAEL D CFD 88-12 Reimb:APN 910351012 501.42 501.42 120763 12114/2007 006995 MORIKAWA, WESLEY M. CFD 88-12 Reimb:APN 921831002 200.56 200.56 120764 12114/2007 006867 MOTLEY, MICHAEL M. CFD 88-12 Reimb:APN 910341029 250.70 250.70 120765 1211412007 005465 MOWRER, DONALD J. CFD 88-12 Reimb:APN 910352007 275.78 275.78 120766 1211412007 006868 MULLANEY, RONNY SCOTT CFD 88-12 Reimb:APN 910342008 25070 250.70 120767 1211412007 009287 MULLINS, AIDA CFD 88-12 Reimb:APN 910352021 275.78 CFD 88-12 Reimb:APN 910341012 25070 52648 120768 12114/2007 002967 MYERS JR, ANDREW L CFD 88-12 Reimb:APN 921291059 200.56 200.56 120769 12114/2007 008234 NEDELJKOVIC, VERA CFD 88-12 Reimb:APN 910351013 351.00 351.00 120770 12114/2007 002969 NESBITT PARTNERS TEMECULA CFD 8&12 Reimb:APN 944330021 12,761.34 12,761.34 Page:15 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 16 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120771 12114/2007 006997 NIELSEN, DWIGHT DAVID CFD 88-12 Reimb:APN 910342031 601.70 601.70 120772 12/14/2007 011494 NISHIMURA, EVAN CFD 88-12 Reimb:APN 921292014 200.56 200.56 120773 1211412007 009289 NUMBER 2 PC CFD 88-12 Reimb:APN 910470028 702.00 CFD 88-12 Reimb:APN 910470029 250.70 CFD 88-12 Reimb:APN 910470031 2,557.28 CFD 88-12 Reimb:APN 910470034 1,353.86 CFD 88.12 Reimb:APN 910470035 5,616.00 CFD 88-12 Reimb:APN 910470033 3,861.00 CFD 88-12 Reimb:APN 910470027 3,735.64 18,076.48 120774 1211412007 009289 NUMBER 2 PC CFD 88-12 Reimb:APN 910470036 1,629.64 CFD 88-12 Reimb:APN 910470030 1,078.06 2,707.70 120775 1211412007 010666 OCC RETAIL CFD 88-12 Reimb:APN 921830040 1,805.14 CFD 88-12 Reimb:APN 921830041 1,454.14 3,259.28 120776 1211412007 011495 OLVEDA, VICTOR CFD 88-12 Reimb:APN 921291060 200.56 200.56 120777 12114/2007 009290 ONEILL & NANCY TRUST CFD 88-12 Reimb:APN 910372023 902.56 902.56 120778 12114/2007 004712 ONG, RICHARD & MARY CFD 88-12 Reimb:APN 910342027 325.92 325.92 120779 1211412007 008205 ORG 10 CFD 88-12 Reimb:APN 910320036 2,607.42 2,607.42 120780 1211412007 005507 ORTEGA, LEOPOLDO CFD 88-12 Reimb:APN 910352005 325.92 325.92 120781 1211412007 008206 ORTIZ, ANGELINA L. CFD 88-12 Reimb:APN 910364002 802.28 802.28 120782 12114/2007 009291 OVERLAND BLDG G CFD 88-12 Reimb:APN 921830024 827.36 827.36 120783 1211412007 008207 OVERLAND BUILDING B CFD 88-12 Reimb:APN 921830018 802.28 CFD 88-12 Reimb:APN 921830022 100.28 902.56 120784 1211412007 009292 OVERLAND CORP CTR PROP CFD 88-12 Reimb:APN 921830020 5,565.86 OWNERS CFD 88-12 Reimb:APN 921830026 4,362.42 9,928.28 120785 12114/2007 008208 OVERLAND LAND & CATTLE CO CFD 88-12 Reimb:APN 921810030 7,020.00 LLC CFD 88-12 Reimb:APN 921810031 5,992.06 13,012.06 120786 12J1412007 010686 PACE, CECIL & ELIZA CFD 8&12 Reimb:APN 910353027 300.86 300.86 Page:16 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 17 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120787 12114/2007 009294 PACHECO, DAVID ERNESTO CFD 88-12 Reimb:APN 921292017 200.56 200.56 120788 12/14/2007 006870 PACIFIC TRUST BANK CFD 88-12 Reimb:APN 921260023 1,554.42 1,554.42 120789 1211412007 005495 PALLASIGUI, JOSE D. CFD 88-12 Reimb:APN 910352012 275.78 275.78 120790 12114/2007 003910 PALLER, JOANNE E. CFD 88-12 Reimb:APN 921291046 200.56 200.56 120791 1214/2007 005425 PAPA, ANDRES R. CFD 88-12 Reimb:APN 910352011 275.78 275.78 120792 1211412007 010700 PARLIN, FRANCES CFD 88-12 Reimb:APN 910353025 275.78 275.78 120793 1211412007 010694 PARSONS, THERESA CFD 88-12 Reimb:APN 921291008 200.56 200.56 120794 1211412007 006872 PASCO, STEPHEN CFD 88-12 Reimb:APN 921291037 200.56 200.56 120795 12114/2007 011496 PASTOR, DOROTHYV. CFD 88-12 Reimb:APN 910342047 351.00 351.00 120796 1211412007 009295 PATTERSON, LEONE D. CFD 88-12 Reimb:APN 910353006 401.14 401.14 120797 1211412007 004349 PAULL, BECKY CFD 88-12 Reimb:APN 921291026 200.56 200.56 120798 12/14/2007 004714 PEREA, DAVID L. CFD 88-12 Reimb:APN 921291071 200.56 200.56 120799 1211412007 010122 PEREIRA, MICHEAL CFD 88-12 Reimb:APN 921291015 200.56 200.56 120800 12114/2007 008209 PHAN, KEVIN QUOC CFD 88-12 Reimb:APN 910353011 300.86 300.86 120801 12114/2007 009298 PHELPS, WAYNE W. CFD 88-12 Reimb:APN 921750012 2,457.00 2,457.00 120802 1211412007 004715 PHUNG, THANG Q. CFD 88-12 Reimb:APN 910342033 275.78 275.78 120803 1211412007 011575 PIER, EDUARDO & KAT CFD 88-12 Reimb:APN 910353048 275.78 275.78 120804 1211412007 005492 PIERCE, JON J. CFD 88-12 Reimb:APN 910353060 401.14 401.14 Page:17 apChkLst Final Check List Page: 18 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120805 12114/2007 005539 PINKHAM, ROCHELLE CFD 88-12 Reimb:APN 921292024 200.56 200.56 120806 12/14/2007 004350 PLAZA TEMECULA CFD 88-12 Reimb:APN 910320030 2,632.50 CFD 88-12 Reimb:APN 910320029 2,507.14 5,139.64 120807 1211412007 005503 PLOUFFE, KENNETH D. CFD 88-12 Reimb:APN 910353061 526.50 526.50 120808 12114/2007 010689 POWELL, MONTE CFD 88-12 Reimb:APN 910353038 601.70 601.70 120809 12114/2007 004717 POZOS, RANDALL DEAN CFD 88-12 Reimb:APN 910342014 275.78 275.78 120810 1211412007 010707 PULTE CORP CFD 88-12 Reimb:APN 944330017 23,341.48 CFD 88-12 Reimb:APN 944330001 18,903.84 CFD 88-12 Reimb:APN 944330003 10,555.06 52,800.38 120811 1211412007 010682 QUINONES, ANTHONY J. CFD 88-12 Reimb:APN 921292018 200.56 200.56 120812 12114/2007 004720 RABINO, RODOLFO B. CFD 88-12 Reimb:APN 910351014 300.86 300.86 120813 12114/2007 008210 RANCHO HIGHLANDS CFD 88-12 Reimb:APN 944330004 11,758.50 CFD 88-12 Reimb:APN 944330005 11,432.56 CFD 88-12 Reimb:APN 944330007 7,947.64 31,138.70 120814 1211412007 006874 RECLUSADO, RONALD CFD 88-12 Reimb:APN 910353007 300.86 300.86 120815 12114/2007 006875 REDDEN BRUNELLO, DEBBIE R. CFD 88-12 Reimb:APN 910342006 250.70 250.70 120816 12114/2007 009299 REED, MATTHEW ROBERT CFD 88-12 Reimb:APN 921292010 200.56 200.56 120817 12114/2007 009300 REGAN, KENNETH DEAN CFD 88-12 Reimb:APN 921292002 200.56 200.56 120818 1214/2007 010685 REYES, MARTIN CFD 88-12 Reimb:APN 921291073 200.56 200.56 120819 1211412007 006880 REZA, ANTONIO H. CFD 88-12 Reimb:APN 921831003 200.56 200.56 120820 1211412007 001811 RIDDLE, LOUIS W. CFD 88-12 Reimb:APN 921291003 200.56 200.56 120821 1211412007 004721 RISTINE, PATRICK R. CFD 88-12 Reimb:APN 910342013 300.86 300.86 Page:18 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 19 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120822 12114/2007 011497 ROBINSON, EDWARD S. CFD 88-12 Reimb:APN 910342044 351.00 351.00 120823 12/14/2007 010716 ROBINSON, KENNETH CFD 88-12 Reimb:APN 921291021 200.56 200.56 120824 1211412007 011498 RODARTE, ALFONSO CFD 88-12 Reimb:APN 910342038 325.92 325.92 120825 12114/2007 009303 ROEDER, ANDREA D. CFD 88-12 Reimb:APN 921291044 200.56 200.56 120826 1214/2007 005467 ROMERO, EMIL N. CFD 88-12 Reimb:APN 910352020 275.78 275.78 120827 1211412007 001843 ROOK, MICHAEL C. CFD 88-12 Reimb:APN 921291019 200.56 200.56 120828 1211412007 002162 ROOKS, LEANNE CFD 88-12 Reimb:APN 921291035 200.56 200.56 120829 1211412007 004723 ROSIER, REX E. CFD 88-12 Reimb:APN 921291053 200.56 200.56 120830 12114/2007 004724 ROY, SEAN BRANDON CFD 88-12 Reimb:APN 910342016 300.86 300.86 120831 1211412007 008213 ROYAL, MICHAEL D. CFD 88-12 Reimb:APN 910342009 275.78 275.78 120832 1211412007 011576 RUFFY, MOREL V & AL CFD 88-12 Reimb:APN 910341017 250.70 250.70 120833 12/14/2007 002617 S & L OIL CFD 88-12 Reimb:APN 921680017 1,509.53 1,509.53 120834 1211412007 004725 SABELLA, ANGELA C. CFD 88-12 Reimb:APN 921300013 49,892.12 49,892.12 120835 12114/2007 006881 SAINDON, KAREN CFD 88-12 Reimb:APN 921291004 200.56 200.56 120836 12114/2007 008214 SALAZAR, RICHARD A. CFD 88-12 Reimb:APN 921291025 200.56 200.56 120837 1211412007 005468 SALDIVAR, ENRIQUEA. CFD 88-12 Reimb:APN 910351002 275.78 275.78 120838 1211412007 005509 SALDIVAR, LIZZETT CFD 88-12 Reimb:APN 910353014 275.78 275.78 120839 1211412007 011577 SANCHEZ, JUDITH LIS CFD 88-12 Reimb:APN 921292048 200.56 200.56 Page:19 apChkLst Final Check List Page: 20 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120840 12114/2007 009305 SANTAANA, RAQUEL CFD 88-12 Reimb:APN 921292042 200.56 200.56 120841 12/14/2007 011499 SANTOS, AURELIO & C. CFD 88-12 Reimb:APN 910352004 1,052.23 1,052.23 120842 1211412007 004726 SCARPINE, MATTHEW EUGENE CFD 88-12 Reimb:APN 910342020 476.36 476.36 120843 1211412007 009307 SCHAFER, MICHAEL R. CFD 88-12 Reimb:APN 921830017 2,457.00 CFD 88-12 Reimb:APN 921830023 902.56 CFD 88-12 Reimb:APN 921830019 100.28 3,459.84 120844 12114/2007 011500 SCHNEIDER, ROBERT CFD 88.12 Reimb:APN 910353047 275.78 275.78 120845 1211412007 011578 SCOTT, DANIEL CFD 88-12 Reimb:APN 910353040 300.86 300.86 120846 1211412007 010717 SCUDDER, ELIZABETH CFD 88-12 Reimb:APN 921291064 200.56 200.56 120847 12114/2007 003917 SEARS ROEBUCK & COMPANY CFD 88-12 Reimb:APN 910420012 24,519.84 24,519.84 120848 1211412007 011579 SELLERS, MATTHEW B & ALGER CFD 88-12 Reimb:APN 921292033 200.56 200.56 JENI 120849 12114/2007 005471 SERRANO, GABRIEL CFD 88-12 Reimb:APN 910363001 601.70 601.70 120850 1214/2007 008215 SHANNON, DOUGLAS JAMES CFD 88-12 Reimb:APN 910353034 300.86 300.86 120851 1211412007 011580 SHUAIBI, ISSA CFD 88-12 Reimb:APN 921292045 200.56 200.56 120852 1211412007 004730 SMITH, COOLY CFD 88-12 Reimb:APN 910342048 351.00 351.00 120853 12114/2007 005463 SMITH, DEVI T. CFD 88-12 Reimb:APN 910353058 300.86 300.86 120854 12114/2007 010718 SMITH, RAYMOND CFD 88-12 Reimb:APN 910363020 651.86 651.86 120855 1211412007 004355 SMITHEY, BRETT E CFD 88-12 Reimb:APN 921291045 200.56 200.56 120856 1211412007 009308 SOLANEZ INV CFD 88-12 Reimb:APN 921680008 2,206.24 CFD 88-12 Reimb:APN 921680015 2,156.47 4,362.71 120857 1211412007 005524 SORENSEN, MICHAEL B. CFD 88-12 Reimb:APN 910353028 300.86 300.86 Page20 apChkLst Final Check List Page: 21 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120858 12114/2007 006882 SORGENFREY, KENT R. CFD 88-12 Reimb:APN 910341019 300.86 300.86 120859 12/14/2007 005540 SPARLING, ROGER CFD 88-12 Reimb:APN 910352010 275.78 275.78 120860 1211412007 003921 SPEHAR BUSINESS PROPERTIES CFD 88-12 Reimb:APN 944330011 3,785.78 3,785.78 120861 1211412007 003421 SRA VENTURES CFD 88-12 Reimb:APN 944330015 4,713.42 4,713.42 120862 12114/2007 004732 STALLO, JOHNATHAN M. CFD 88-12 Reimb:APN 910361001 325.92 325.92 120863 12114/2007 005498 STEED, KAREN M. CFD 88-12 Reimb:APN 921291075 200.56 200.56 120864 1211412007 009309 STERNGOLD, PAUL CFD 88-12 Reimb:APN 910353012 275.78 275.78 120865 1211412007 011501 STEWARDSHIP CFD 88-12 Reimb:APN 921831013 200.56 200.56 120866 12/14/2007 001802 STEWART, JEAN M. CFD 88-12 Reimb:APN 921292029 200.56 200.56 120867 12114/2007 010701 STONE, RUBIN LAUREN CFD 88-12 Reimb:APN 910364004 1,404.00 1,404.00 120868 12114/2007 010720 TAKAMOTO, LEANN Y CFD 88-12 Reimb:APN 921291055 200.56 200.56 120869 1211412007 001753 TAVAGLIONE, NICHOLAS E. CFD 88-12 Reimb:APN 921291058 200.56 200.56 120870 1211412007 008218 TEMECULA MO, LLC CFD 88-12 Reimb:APN 921810033 13,125.66 13,125.66 120871 12114/2007 005649 TEMECULA PAD H CFD 88.12 Reimb:APN 910320047 2,808.00 2,808.00 120872 12114/2007 009310 TEMECULA PAD H CFD 88-12 Reimb:APN 910320038 2,256.42 2,256.42 120873 12114/2007 005737 TEMECULA PAD PQ CFD 88-12 Reimb:APN 910320050 2,682.64 CFD 88-12 Reimb:APN 910320051 2,131.06 4,813.70 120874 1211412007 004358 TEMECULA PLACE CFD 88-12 Reimb:APN 910320026 3,209.14 CFD 88-12 Reimb:APN 910320027 2,306.56 5,515.70 120875 1211412007 003927 TEMECULA SELF STORAGE INC CFD 88-12 Reimb:APN 921750013 8,173.28 8,173.28 Page21 apChkLst 12/1412007 11:13:51AM Final Check List CITY OF TEMECULA Page: 22 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120876 12114/2007 003928 TEMECULA TOWEE CENTER CFD 88-12 Reimb:APN 910470012 1,805.14 ASSN CFD 8&12 Reimb:APN 910420005 76,969.26 CFD 8&12 Reimb:APN 910420007 7,997.78 CFD 8&12 Reimb:APN 910420008 5,866.70 92,638.88 120877 12114/2007 006884 TEMECULA VALLEY CHAMBER CFD 88-12 Reimb:APN 921750010 1,830.20 1,830.20 120878 12114/2007 003929 TEMECULA VALLEY UNIFIED CFD 88-12 Reimb:APN 910330004 52,399.26 52,399.26 SCHOOL 120879 1211412007 006885 THOMAS, DARREN D. CFD 88-12 Reimb:APN 921292044 200.56 200.56 120880 1211412007 009311 TOLTON, DENNIS R. CFD 88-12 Reimb:APN 921291066 200.56 200.56 120881 1211412007 010668 TOM JUNG NGOON & DITOM & CFD 88-12 Reimb:APN 921830039 2,883.20 2,883.20 LEE 120882 1211412007 011581 TORRES HUMBERTO A & CFD 88-12 Reimb:APN 921292039 200.56 200.56 ULLRICH, ELISA YVET 120883 1211412007 010721 TORRES, NIKITA L CFD 88-12 Reimb:APN 921292038 200.56 200.56 120884 1211412007 002976 TOUSSAINT, RICHARD CFD 88-12 Reimb:APN 921292028 200.56 200.56 120885 12114/2007 005554 TOWER OFFICE PLAZA I LLC CFD 88-12 Reimb:APN 921260019 3,835.92 CFD 88-12 Reimb:APN 921260018 2,331.64 CFD 8&12 Reimb:APN 921270045 401.14 CFD 88-12 Reimb:APN 921270054 11,232.00 17,800.70 120886 1211412007 011502 TOWER PLAZA INC CFD 88-12 Reimb:APN 921260030 10,404.64 10,404.64 120887 12114/2007 004737 TRAN, AN HAI CFD 88-12 Reimb:APN 910342025 325.92 325.92 120888 1211412007 008220 TRAN, MONG T. CFD 88-12 Reimb:APN 910353008 275.78 275.78 120889 1211412007 008221 TRAN, VINCE L. CFD 88-12 Reimb:APN 910351001 275.78 275.78 120890 12/1412007 010684 TYLER, CHESTER RAY CFD 8&12 Reimb:APN 921291050 200.56 200.56 120891 1211412007 011504 U S BANK NATIONAL ASSN CFD 88-12 Reimb:APN 921291043 599.38 599.38 Page22 apChkLst Final Check List Page: 23 12/1412007 11:13:51AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120892 12114/2007 009313 UNION BANK OF CALIFORNIA CFD 88-12 Reimb:APN 910330014 4,638.20 4,638.20 120893 12/14/2007 006888 VARGAS, AMELIA CFD 88-12 Reimb:APN 910341021 3,831.43 3,831.43 120894 1211412007 008223 VINCENT, CLAYTON P. CFD 88-12 Reimb:APN 921292009 200.56 200.56 120895 12114/2007 004740 VINOLE, EMILIANO J. CFD 88-12 Reimb:APN 910342026 300.86 300.86 120896 1214/2007 004742 VNENK, MILOS M. CFD 88-12 Reimb:APN 910351010 351.00 351.00 120897 1211412007 005483 VOLLMER, JEFFERY J. CFD 88-12 Reimb:APN 910353056 551.56 551.56 120898 1211412007 011505 WAIDE, SHIRLEY & BAKER JOHN CFD 88-12 Reimb:APN 910341009 325.92 325.92 120899 1211412007 009314 WEBB, JAMES C. CFD 88-12 Reimb:APN 921260022 1,328.78 1,328.78 120900 12/14/2007 004745 WEHBA, MOHAMED NIJEM CFD 88-12 Reimb:APN 910341010 275.78 275.78 120901 12114/2007 001754 WEINGART, RUTH CFD 88-12 Reimb:APN 921291057 200.56 200.56 120902 12114/2007 003931 WELLS FARGO BANK NATL ASSN CFD 88-12 Reimb:APN 921320054 3,685.50 3,685.50 120903 12114/2007 008225 WELLS, MONICA A. CFD 88-12 Reimb:APN 910341015 250.70 250.70 120904 1211412007 008226 WESTMAR OVERLAND CFD 88-12 Reimb:APN 921830025 952.70 952.70 Page23 apChkLst 12114/2007 11:13:51 AM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 120905 1211412007 011506 WGA BEL VILLAGGIO 120906 12/14/2007 120907 1211412007 120908 12114/2007 120909 12114/2007 120910 12/1412007 120911 12/14/2007 120912 12/1412007 120913 12114/2007 120914 12114/2007 120915 12/1412007 120916 1211412007 120917 12/1412007 005517 WHITE, MARTIN E. 009316 WHITTIER, CLAUDIA J. 004746 WILLIE, JOHN 011582 WILLIAMS, GEORGE ED 009319 WILSON, CHRISTOPHER T. 001844 WILSON, MAUREEN A 008228 WINCHESTER FUELS CORP 006892 WOLF, JOHN P. 011508 WONG, HERBERT & RAY 010723 WOPPERER, STEVEN 011583 YANG, SHU HUI 004749 YATES, PATRICIA Final Check List Page: 24 CITY OF TEMECULA (Continued) Description Amount Paid Check Total CFD 88-12 Reimb:APN 921830006 200.56 CFD 88-12 Reimb:APN 921830011 827.36 CFD 88-12 Reimb:APN 921830012 576.64 CFD 8&12 Reimb:APN 921830007 401.14 CFD 8&12 Reimb:APN 921830003 1,454.14 CFD 88-12 Reimb:APN 921830004 1,103.14 CFD 88-12 Reimb:APN 921830008 877.50 CFD 8&12 Reimb:APN 921830015 2,833.06 CFD 8&12 Reimb:APN 921830014 2,557.28 CFD 88-12 Reimb:APN 921830002 1,529.36 CFD 8&12 Reimb:APN 921830001 3,735.64 CFD 8&12 Reimb:APN 921830005 3,635.36 CFD 88-12 Reimb:APN 921830009 2,833.06 CFD 88-12 Reimb:APN 921830016 8,800.06 CFD 8&12 Reimb:APN 921830013 5,315.14 CFD 88-12 Reimb:APN 921830010 4,312.28 40,991.72 CFD 8&12 Reimb:APN 921292036 200.56 200.56 CFD 8&12 Reimb:APN 921292005 200.56 200.56 CFD 88-12 Reimb:APN 910341003 300.86 300.86 CFD 88.12 Reimb:APN 921291054 200.56 200.56 CFD 8&12 Reimb:APN 910352002 300.86 300.86 CFD 8&12 Reimb:APN 921291020 200.56 200.56 CFD 8&12 Reimb:APN 910320028 3,008.56 3,008.56 CFD 88-12 Reimb:APN 910353002 426.20 426.20 CFD 88-12 Reimb:APN 910342040 300.86 300.86 CFD 8&12 Reimb:APN 910364001 877.50 877.50 CFD 8&12 Reimb:APN 921291009 200.56 200.56 CFD 88-12 Reimb:APN 910341007 351.00 351.00 Page24 apChkLst 12/1412007 11:13:51 AM Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor 120918 12114/2007 005561 YATES, WILSON P. 120919 12/14/2007 009322 YOUNG, KENNETH 120920 1211412007 011584 YOW, JULIE D 120921 12114/2007 004751 ZEEB, STEPHEN J. 120922 12114/2007 005551 ZEIF, STEVE LOUIS 120923 1211412007 005479 ZENK, HENRY 120924 1211412007 009323 ZHANG, YAN 120925 1211412007 004752 ZONA, KIMBERLY K. Final Check List CITY OF TEMECULA Page: 25 (Continued) Description Amount Paid Check Total CFD 88-12 Reimb:APN 910341027 275.78 275.78 CFD 88-12 Reimb:APN 910352001 401.14 401.14 CFD 88-12 Reimb:APN 921292040 200.56 200.56 CFD 88-12 Reimb:APN 910342023 451.28 451.28 CFD 88-12 Reimb:APN 910353059 325.92 325.92 CFD 88-12 Reimb:APN 910353032 300.86 300.86 CFD 88-12 Reimb:APN 910353021 275.78 275.78 CFD 88-12 Reimb:APN 910361003 351.00 351.00 Grand total for UNION BANK OF CALIFORNIA: 1,461,717.35 Page25 apChkLst Final Check List Page: 26 12/14/2007 11:13:51AM CITY OF TEMECULA 412 checks in this report. Grand Total All Checks: 1,461,717.35 Page26 apChkLst 12120/2007 11:22:16AM Final Check List CITY OF TEMECULA Page: 1 Bank : union UNION BANK OF CALIFORNIA Check # Date Vendor Description Amount Paid Check Total 120513 1211312007 006114 CASEY, MARGIE reimb:Team PACE gift cards 2,535.00 2,535.00 120926 1212012007 010851 ADAMIAK, DAWN reimb:supplies holiday lights/sights 173.09 173.09 120927 12120/2007 011629 AGLE, AIMEE reimb:supplies Theater event 12/8 129.14 129.14 120928 12120/2007 009033 ALLEN, STEVEN L. photography svcs:Tree Lighting 300.00 photography svcs:Brkfst w/Santa 300.00 600.00 120929 12/20/2007 006915 ALLIE'S PARTY EQUIPMENT equipment rental:tree lighting 580.57 580.57 120930 12/2012007 004240 AMERICAN FORENSIC NURSES DUI & drug screenings: Police 407.00 DUI & drug screenings: Police 237.00 644.00 120931 12120/2007 001587 AMERICAN PUBLIC WORKS '08 APWA mbshp 602570:Butler,G. 176.25 176.25 ASSN. 120932 12/20/2007 003203 ARTISTIC EMBROIDERY recognition gifts:high hopes pgrm 731.52 embroidery uniform shirts: IS 129.30 860.82 120933 12120/2007 002648 AUTO CLUB OF SOUTHERN Membership: Hodson, Jack 67.00 67.00 CALIF 120934 12/20/2007 011448 BEARCOM OPERATING L.P. Radio Rentals:Holiday Parade 602.20 602.20 120935 1212012007 002541 BECKER CONSTRUCTION SRVS Old Kent Rd street maint: PW 9,530.95 INC drainage & slope repairs: PW 6,620.00 John Warner pond maint: PW 2,977.50 drainage & slope repairs: PW 300.00 19,428.45 120936 12120/2007 003984 BENOIT, VINCENT H. Santa in Old Town 12122107 175.00 room call chg Holiday Inn Express -0.45 garnishment case# 880752292 -43.75 130.80 120937 12/20/2007 006908 C C & COMPANY INC entertainment:Old Town events 2,400.00 Holiday costume rentals:TCSD 150.00 costume rental:TCSD 48.49 2,598.49 120938 12/2012007 003138 CAL MAT PW patch truck materials 261.62 PW patch truck materials 259.04 PW patch truck materials 156.06 676.72 120939 12120/2007 005660 CALIF EMS AUTHORITY '08 paramedic license# P08542 130.00 130.00 Page:1 apChkLst 12/2012007 11:22:16AM Final Check List CITY OF TEMECULA Page: 2 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120940 12/2012007 004604 CALPELRA '08 Calpelra mbrshp:Yates, Grant 310.00 310.00 120941 12/2012007 004228 CAMERON WELDING SUPPLY Helium tanks rental/refill:TCSD 40.60 40.60 120942 1212012007 011637 CAMPOS VERDES LLC refund:mitigation monitoring deposit 771.60 771.60 120943 12120/2007 008644 CANTRELL, ROGER, AIA, AICP Nov design consultant svc:Planning 402.00 402.00 120944 12120/2007 011542 CASCADE FIRE EQUIPMENT miscfiire equip: Stn 84 137.79 137.79 COMPANY 120945 12120/2007 010434 CATERERS CAFE refreshments: Sister City Visit 480.83 refreshments reg medical mtg:CM 350.18 refreshments: Sister City Visit 328.25 refreshments ED interviews:CM 53.19 1,212.45 120946 1212012007 003775 CHAPARRAL HIGH SCHOOL transportation stipend:light parade 300.00 300.00 120947 12/20/2007 003775 CHAPARRAL HIGH SCHOOL refund:security dep TCC 1216 150.00 150.00 120948 12/2012007 000137 CHEVRON U S A INC City vehicles fuel: Police 1,023.01 City vehicles fuel: CM & Police 420.07 1,443.08 120949 12120/2007 005417 CINTAS FIRST AID & SAFETY First aid supplies:TCSD vehicles 206.16 First aid supplies: Library 163.34 First aid supplies: Theater 159.14 528.64 120950 12120/2007 000447 COMTRONIX OF HEMET Low Loss Cable: Fld Op Ctr 2,270.44 2,270.44 120951 12/2012007 011638 CONTRACT CARPET ONE refund:depst 30643 Temecula Pkwy 995.00 995.00 120952 1212012007 001923 CONVERSE CONSULTANTS Oct Geotech Svcs: Rancho Cal/15 2,557.50 2,557.50 120953 12/2012007 001264 COSTCO WHOLESALE refreshments:holiday parade 20.28 20.28 120954 1212012007 010650 CRAFTSMEN PLUMBING & HVAC plumbing svcs: City Hall 272.50 INC plumbing svcs: Duck Pond 171.78 444.28 120955 1212012007 008810 CROSSTOWN ELECTRICAL & Sept traffic cameras install: PW 25,398.00 25,398.00 DATA Page2 apChkLst Final Check List Page: 3 12/2012007 11:22:1 6AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120956 12120/2007 010432 D & M ROOF REPAIR Res Imp Pgm:Dibernardo, Mario/Leah 750.00 750.00 SPECIALISTS 120957 12/2012007 003272 DAISYWHEEL RIBBON plotter papertsupplies: GIS 258.22 258.22 COMPANY INC 120958 1212012007 011027 DEL RIO ENTERPRISE INC. release retention: PW06-07(1A) 2,279.80 2,279.80 120959 12120/2007 008943 DEPT OF GENERAL SERVICES Admin Hearing Svcs:Code Enf 789.25 789.25 (DGS) 120960 1212012007 009833 DISNEYLAND RESORTS-LOCAL excursion:High Hopes pgrm 1,198.00 1,198.00 CORP 120961 1212012007 002528 EAGLE GRAPHIC CREATIONS uniform shirts: TCC 982.53 982.53 INC 120962 1212012007 004592 ELITE BOBCAT SERVICE INC Nov Const:Diaz Rd Realign Phase Ii 285,085.07 285,085.07 120963 12/2012007 001056 EXCEL LANDSCAPE trees for memorial grove: RRSP 430.80 430.80 120964 12J2012007 008784 FIRE ENGINEERING fire eng subscription 1 yr: Stn 92 29.95 29.95 Page3 apChkLst Final Check List Page: 4 12/2012007 11:22:16AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120965 12120/2007 003347 FIRST BANKCARD CENTER HUNGRY HUNTER AA Refreshments:Sister City Event 1,120.36 INTL ASSN OF PLUMBING AND MH B&S Code book publications 313.42 JOHNNY CARINO'S LLC SJ Refreshments:Council Closed Sesssion 272.09 NATIONAL NOTARY SJ Notary supplieslTrng:CC Staff 238.60 ASSOCIATION PECHANGA RESORT & CASINO WH Refreshments:PW Mntc Crew Mtg 162.45 FIORE WHOLESALE AA EE Recognition centerpieces 134.68 FCC CONFERENCECALLSVC RJ Conference calls svcs 89.60 HOME ENERGY MAGAZINE MH Online subscription:Hm Energy 65.00 BASKETS & BALLOONS TOO! SN Sunshine Fund:RR 58.19 GILBERT'S MONTEREY SJ Meal: Law/Elect Sem:1215-6:Mntry 47.11 LINDBERGH PARKING SAN SJ Prkg:Law/Elect Sem:1215-6:Mntry 42.00 DIEGO CAPTAIN GIG SEAFOOD CAFE SJ Meal: Law/Elect Sem:12/5-6:Mntry 30.71 GOLDEN TEE SJ Meal: Law/Elect Sem:12/5-6:Mntry 27.56 MARIE CALLENDER SJ Refreshments:Council Closed Sesssion 19.98 RESTAURANT 25 NINE DRAGONS COMPUTER SJ Meal: Law/Elect Sem:1215-6:Mntry 11.17 2,632.92 CAFE 120966 12/2012007 002982 FRANCHISE TAX BOARD Case# 880752292 Benoit, V. 43.75 43.75 120967 1212012007 000795 FRED PRYOR SEMINARS- mng mul projects#64786 1/14:EJ 79.00 79.00 CAREERTRAC 120968 1212012007 003815 GFB FRIEDRICH & ASSOCIATES Oct design svc:DePortola Rd 12,191.63 12,191.63 INC 120969 1212012007 009094 GLENEAGLES CORPORATION, Res Imp Pgm: Favretto, Frances 3,000.00 3,000.00 THE 120970 12/2012007 000177 GLENNIES OFFICE PRODUCTS Office Supplies: Planning/Code Enf 647.29 INC Office Supplies: B&S 239.22 886.51 120971 12/20/2007 011640 GOALS refund: holiday light parade 25.00 25.00 120972 12J2012007 005947 GOLDEN STATE OVERNIGHT 11116-28 express mail svc:Fire Prev 25.06 25.06 Page-.4 apChkLst 12/2012007 11:22:16AM Final Check List CITY OF TEMECULA Page: 5 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120973 12/20/2007 005664 GOSCH TOWING & RECOVERY towing services: Police 165.00 165.00 120974 12/2012007 000175 GOVERNMENT FINANCE certlexcellence fin. reporting app fee 550.00 550.00 OFFICERS 120975 1212012007 005363 GRAPELINE, THE excursion:Voorburg Sister City tour 745.20 745.20 120976 1212012007 008444 GREAT OAK HIGH SCHOOL transportation stipend:light parade 300.00 300.00 120977 12120/2007 002174 GROUP 1 PRODUCTIONS Video Svcs:lnside Temecula 2&3 4,200.00 4,200.00 120978 12120/2007 011048 GROVE, BETTE refund:security dep CRC 11130 150.00 150.00 120979 12/20/2007 009646 HAGHIGHI, KAVON Reimb:'08 Eng License Fee 57308 125.00 125.00 120980 1212012007 004811 HEWLETT PACKARD Hp Designjet 60-In Printer:ls 16,723.88 16,723.88 120981 12/2012007 009306 HILLCREST SCHOOL INC. '07 Electric Light Parade Winner 200.00 200.00 120982 12120/2007 008694 HOLIDAY INN EXPRESS hotel stay 1211107:Santa-V. Benoit 132.44 132.44 TEMECULA 120983 12120/2007 001517 HORIZON HEALTH Employee Assistance Pgrm:HR 884.40 884.40 120984 12120/2007 000193 1 C M A '08 ICMA mbrshp: Adams, Aaron 1,200.00 1,200.00 120985 1212012007 000863 I P M A '08 mbrshp 31681:City of Temecula 345.00 345.00 120986 12/20/2007 011647 IANNUZZI, NICHOLAS refund: planning application 3,226.00 3,226.00 120987 12J2012007 001407 INTER VALLEY POOL SUPPLY pool sanitizing chemicals:CRC 521.21 521.21 INC 120988 1212012007 003266 IRON MOUNTAIN OFFSITE Nov records storage: IS back-up tape 440.11 440.11 120989 12/20/2007 008761 JAIME, JUAN reimb:employee computer loan pgm 2,000.00 2,000.00 120990 12/20/2007 001091 KEYSER MARSTON ASSOCIATE S Nov cnslt svc:RDA real estate 6,552.68 INC Nov cnslt svc: RDA housingled ctr 1,120.01 7,672.69 Pages apChkLst 12/2012007 11:22:16AM Final Check List CITY OF TEMECULA Page: 6 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 120991 12120/2007 004481 KIMLEY HORN & ASSOCIATES Oct cnslt svcs:murr creek trail 9,022.25 9,022.25 INC 120992 12/2012007 010922 KITTENS'N' PUPS K-9 Food & Supplies: Police 46.32 46.32 CORPORATION 120993 1212012007 007834 KMART bicycle purchases:spark of love 2,095.40 bicycle purchases:spark of love 1,599.84 bicycle purchases:spark of love 686.64 4,381.88 120994 12120/2007 011641 KRESSIN, TIM refund: holiday light parade 25.00 25.00 120995 12120/2007 000210 LEAGUE OF CALIF CITIES regist:PW Officers Expo 315.318108 BH 495.00 495.00 120996 12J2012007 009388 LETS GET PERSONAL shirtlembroidery: Planning 31.25 31.25 120997 1212012007 003726 LIFE ASSIST INC medical supplies: Paramedics 371.64 371.64 120998 12/2012007 011648 LUNDE, BETTY refund:security dep CRC 1212 150.00 150.00 120999 12120/2007 003782 MAIN STREET SIGNS street signs:pw maint div 501.04 501.04 121000 12120/2007 004141 MAINTEX INC custodial supplies: parks 246.97 custodial supplies: mpsc 123.96 custodial supplies: library 70.99 441.92 121001 1212012007 001967 MANPOWER TEMPORARY temp help We 12109ACTTF 1,370.80 1,370.80 SERVICES 121002 1212012007 000944 MCCAIN TRAFFIC SUPPLY INC Traffic sigl poles:rancho cal/bus pk dr 26,866.85 anch bolts:rancho callbus pk dr 1,396.11 28,262.96 121003 12/20/2007 006571 MELODY'S AD WORKS reimb expenses:O.T. Dickens holiday 356.57 356.57 121004 12J2012007 009541 MEYER AND ASSOCIATES Oct design:tcc expansion 43,415.00 43,415.00 121005 12120/2007 011649 MILLER, WENDY Ee Computer Purchase Prgrm 2,000.00 2,000.00 121006 12/2012007 011440 MILLMORE'S WAX CREW City vehicles detailing srvcs:PW Depts 125.00 City vehicle detailing srvcs:PW Depts 100.00 City vehicles detailing srvcs:Planning 20.00 245.00 121007 12/20/2007 001384 MINUTEMAN PRESS business cards:M. McCracken 116.96 116.96 Page.6 apChkLst Final Check List Page: 7 12/2012007 11:22:1 6AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 121008 12/20/2007 000883 MONTELEONE EXCAVATING Channel maint:target center 2,751.00 road grading srvcs: service level R 1,670.00 4,421.00 121009 1212012007 004586 MOORE FENCE COMPANY fence repair:RRSP 25,976.68 25,976.68 121010 12/2012007 001214 MORNINGSTAR PRODUCTIONS, Announcer-2007 Parade 1,388.09 1,388.09 LLC 121011 1212012007 002257 MOST DEPENDABLE FOUNTAINS Drinking Fountain Parts:Var Parks 562.00 562.00 121012 12/2012007 009915 MOUNTAINVIEW COMMUNITY refund:sec deposit/TCC 12/1/07 150.00 150.00 CHURCH 121013 1212012007 010908 MR APPLIANCE OF WINCHESTER Appliance repair:crc 320.96 320.96 121014 12120/2007 009443 MUNYON, DENNIS G. Jan-Mar'08 Old Town parking agrmnt 2,050.00 2,050.00 121015 12/2012007 002925 NAPA AUTO PARTS misc supplies:pw maint div 272.24 272.24 121016 12/20/2007 008606 NEW IMAGE AUTO BODY painting srvcs:Police 75.00 75.00 121017 12/2012007 011643 NEX GENERATION INC refund:holiday light parade/4443.201 75.00 75.00 121018 12/2012007 008528 NICHOLS, MELBURG & ROSETTO reimb expenses:old town infrastructure 2,380.37 reimb expenses:Civic Center ph II 687.64 3,068.01 121019 1212012007 002139 NORTH COUNTY TIMES Nov ads:tcsd holiday events 775.31 Nov ads for theater 462.55 1,237.86 121020 1212012007 003964 OFFICE DEPOT BUSINESS SVS Misc Office Supplies:Police Mall Stn 75.91 75.91 DIV 121021 1212012007 006721 OFFICEMAX - A BOISE COMPANY 15,000 Tem Public Library Cards 6,675.11 misc. office supplies:finance 59.57 6,734.68 121022 12120/2007 002105 OLD TOWN TIRE & SERVICE City Vehicle RepairlMaint Svcs 425.23 City Vehicle Repair/Maint Svcs 310.58 City Vehicle RepairlMaint Svcs 141.32 City Vehicle RepairlMaint Svcs 25.67 902.80 121023 1212012007 001171 ORIENTAL TRADING COMPANY Brkfst W/Santa Supplies:Tcsd 119.85 INC Brkfst W/Santa Supplies:Tcsd 59.00 178.85 Page.7 apChkLst Final Check List Page: 8 12/2012007 11:22:1 6AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 121024 12/2012007 002256 P & D CONSULTANTS INC Nov plan check review srvcs-B&S Dept. 6,765.04 6,765.04 121025 12/2012007 011284 P D S WEST Jul-Nov Consult Srvcs:Nicolas Vly Study 8,800.00 8,800.00 121026 1212012007 004088 PALA MESA RESORT Deposit:Exec Retreat 2/21-22/08 956.00 956.00 121027 12120/2007 007197 PALOMA VALLEY HIGH SCHOOL band transport stipend/'07 holiday 300.00 300.00 121028 12120/2007 000249 PETTY CASH Petty Cash Reimbursement 530.40 Petty Cash Reimbursement 390.12 920.52 121029 1212012007 000253 POSTMASTER Express Mail & Postal Svcs 52.10 52.10 121030 1212012007 000254 PRESS ENTERPRISE COMPANY Nov advertising:tcsd/old town events 1,356.64 1,356.64 INC 121031 1212012007 011655 PROGRESSIVE BUSINESS PUBL. 1yr subscr/accts payable newsletter 299.00 299.00 121032 1212012007 000262 RANCHO CALIF WATER DISTRICT Various TCSD Water Meters 14,229.94 Dec 01-02-02001-0 Rancho Vista Rd 413.13 Various PW Water Meters 289.40 Various RDA Water Meters 64.73 14,997.20 121033 12120/2007 002654 RANCHO FORD LINCOLN Vehicle purchase:tcsd park ranger 23,044.62 MERCURY Vehicle purchase:tcsd Idscp inspect 21,135.29 44,179.91 121034 12120/2007 000907 RANCHO TEMECULA CAR WASH City vehicle detailing srvcs:Var.Depts 241.50 241.50 121035 12120/2007 003591 RENES COMMERCIAL weed control:pw maintenance 5,500.00 5,500.00 MANAGEMENT 121036 12/2012007 011646 RICHARDSON, KATHY refund:sec.deposit/CRC 1211107 150.00 150.00 121037 12120/2007 008928 RIGEL PRODUCTS & SERVICE equip repair & maint:pw maint div 601.58 601.58 121038 12/2012007 000418 RIVERSIDE CO CLERK & Ntc/Exemption:Rdhwk Parks Imprv 64.00 64.00 RECORDER 121039 1212012007 003698 RIVERSIDE CO ECONOMIC EDA Forum 1131 AA/GW/GY/TM 140.00 140.00 Page:B apChkLst Final Check List Page: 9 12/2012007 11:22:1 6AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 121040 12120/2007 000406 RIVERSIDE CO SHERIFFS DEPT FY 07/08 CAL-ID mbr assessment 80,774.00 80,774.00 121041 12/2012007 011645 RIVERSIDE CO SUPERIOR Deposit:apn 961-010-022 176,500.00 176,500.00 COURT 121042 1212012007 011645 RIVERSIDE CO SUPERIOR deposit:apns 961-010-0091961-010-047 78,000.00 78,000.00 COURT 121043 12/2012007 001365 RIVERSIDE COUNTY OF Jul-Sep '07 vector control srvcs 7,051.48 billing adj:Jul-Sep '07 vector control 10.90 7,062.38 121044 1212012007 003587 RIZZO CONSTRUCTION INC playstructure retrofit: vail ranch park 62,805.40 62,805.40 121045 1212012007 001942 S C SIGNS Oct-Nov public ntc sign postings:C.Clrk 170.00 170.00 121046 12120/2007 005329 SAFE ALTERNATIVE FOR Council Comm. Srvc Funding Prgm 1,000.00 1,000.00 EVERYONE 121047 12J2012007 000278 SAN DIEGO UNION TRIBUNE Nov recruitment ads:human resources 600.78 600.78 121048 12120/2007 010089 SECURITAS SECURITY SRVCS Nov security srvcs:Harv Lake 3,202.50 USA 11130-1216 security srvcs:stn 95 1,357.96 4,560.46 121049 12120/2007 009213 SHERRY BERRY MUSIC performances:Thtr 1117,24,31 & 217,14 2,300.00 2,300.00 121050 1212012007 003506 SHIVELA MIDDLE SCHOOL BAND band transport stipendl'07 holiday 200.00 200.00 121051 1212012007 009746 SIGNS BY TOMORROW reclaimed wtr use requirement 358.83 Identification: new csd vehicles 143.96 Prk closed sign:Margarita Prk 90.71 593.50 121052 12J2012007 000645 SMART & FINAL INC misc supplies: Human Resources 224.31 misc rec supplies:mpsc 195.57 misc rec supplies:mpsc 172.19 misc supplies:holiday lights tour 50.56 642.63 121053 1212012007 000537 SO CALIF EDISON Dec 2-00-397-5059 various mtrs 16,527.58 Dec 2-05-791-8807 various mtrs 14,181.51 Dec 2-27-560-0625 Deerhollow Way 3,877.13 Dec 2-26-887-0789 various mtrs 1,567.58 Dec 2-25.393-4681 TES Pool 932.58 Nov 2-29-953-8082 Wolf Valley 107.09 Nov 2-29-953-8249 Wolf Crk Dr PED 9079 Dec 2-28-397-1315 Redhawk Pkwy 16.90 37,301.16 PageD apChkLst Final Check List Page: 10 12/2012007 11:22:1 6AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 121054 12/20/2007 001212 SO CALIF GAS COMPANY Dec 015-575-0195-2 Wolf Vlly Rd 290.98 Dec 055-475-6169-5 PBSP 175.24 466.22 121055 12/2012007 002503 SOUTH COAST AIR QUALITY FY 07/08 emerg gen. op. fees:Stn 84 266.55 FY 07/07 gen. emissions fee:Stn 84 99.09 365.64 121056 1212012007 000519 SOUTH COUNTY PEST CONTROL Nov pest control services: City Fac's 541.00 INC pest control services: rrsp 84.00 pest control services: Marg Park 84.00 pest control srvcs:t.c.c. 84.00 pest control srvcs:vintage hills 84.00 pest control srvcs1R.Vista:Code Enf 84.00 pest control srvcs/Bus.Prk Dr:Code Enf 84.00 1,045.00 121057 12120/2007 007851 SOUTHCOAST HEATING & AIR hvac prevmaint: library 1,920.00 Plumbing srvcs:city hall 354.09 2,274.09 121058 12120/2007 005786 SPRINT Oct 26-Nov 25, 2007cellular usage/equip 7,818.29 7,818.29 121059 1212012007 000293 STADIUM PIZZA INC refreshments:wreath decorating/O.T. 89.96 rfrshmnts/staffing training: c. museum 66.95 refresh ments:wreath decorating/O.T. 39.34 196.25 121060 12120/2007 006145 STENO SOLUTIONS Nov transcription srvcs: Police 1,558.56 1,558.56 TRANSCRIPTION 121061 12120/2007 007159 STEVE JULIUS CONSTRUCTION refund:deposit/trust account 2,060.00 2,060.00 121062 12120/2007 007273 STUMPS PRINTING COMPANY brkfst w/Santa supplies:tcsd 394.93 394.93 INC 121063 12/20/2007 008373 SUNBELT RENTALS INC light tower rentals-Parade 11130 460.00 Del/Pickup Chrge-Light 260.00 720.00 121064 12120/2007 011626 SW CALIF ECONOMIC ALLIANCE Fy 07108 Marketing Agreement Pmt 60,000.00 60,000.00 121065 12120/2007 000305 TARGET BANK BUS CARD SRVCS Misc Toys/Gift Cards: Fire/Spark Of Love 1,006.12 recreation supplies:mpsc 237.17 misc supplies:Tiny Tots pgrm 93.55 recreation supplies: c. museum 72.47 recreation supplies: c. museum 34.77 mist supplies:holiday lights tour 20.02 1,464.10 121066 12120/2007 008292 TEMECULA DIESEL AUTO & truck repair:pw maint div 1,373.10 TRUCK truck repair:pw maint div 347.66 truck repair:pw maint div 218.70 1,939.46 Page:10 apChkLst Final Check List Page: 11 12/2012007 11:22:1 6AM CITY OF TEMECULA Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 121067 12/2012007 004260 TEMECULA STAMP & GRAPHICS 12 self inking stamps:finance 213.47 213.47 121068 12/2012007 000307 TEMECULA TROPHY COMPANY recognition plaques:Maggi Allen 1,377.58 Proclamation Cert. Holders:City Clerk 698.22 recognition awards:human resources 584.22 name badge: M. McCracken 8.57 2,668.59 121069 12120/2007 007340 TEMECULA VALLEY FIRE EQUIP. Fire extinguishers:csd new vehicles 80.70 80.70 CO 121070 12120/2007 000311 TEMECULA VALLEY HIGH transport stipendl'07 holiday parade 300.00 300.00 SCHOOL 121071 12120/2007 005597 TEMECULA VALLEY POP refund:sec.depositlCRC 1213107 150.00 150.00 WARNER INC 121072 1212012007 004274 TEMECULA VALLEY SECURITY keys & locks svcslsupplies:Fire Stn 92 679.70 CENTR locksmith services: crc 250.00 929.70 121073 12/20/2007 003849 TERRYBERRY COMPANY safe driver recogn award:HR 70.85 70.85 121074 12120/2007 003508 THOMPSON MIDDLE SCHOOL band transport stipendl'07 holiday 200.00 200.00 121075 1212012007 003862 THYSSENKRUPP Elevatorrepair:theater 121.50 121.50 ELEVATOR.BRNCH 37 121076 1212012007 010276 TIME WARNER CABLE Dec high speed internet City Hall 183.38 Dec high speed internet Stn 92 44.95 228.33 121077 1212012007 009912 U R S CORPORATION Oct Prof Eng: W.Bypass Alignment Study 4,731.19 4,731.19 121078 12/2012007 007118 U S TELEPACIFIC CORPORATION Dec Internet IPAddresses Block 1,566.04 1,566.04 121079 1212012007 004261 VERIZON Dec xxx-5072 general usage 4,745.80 Dec xxx-6812 General usage 89.73 Dec xxx-7562 irrigation controller 34.80 Dec xxx-2372 Wf Crk Irrg Cntrl 32.68 4,903.01 121080 12/2012007 004848 VERIZON SELECT SERVICES INC Dec long distance phone Svcs 569.65 569.65 121081 1212012007 009101 VISION ONE INC Nov Showare ticketing srvcs:theater 2,347.80 2,347.80 Page:11 apChkLst 12/2012007 11:22:16AM Final Check List CITY OF TEMECULA Page: 12 Bank : union UNION BANK OF CALIFORNIA (Continued) Check # Date Vendor Description Amount Paid Check Total 121082 12/2012007 001342 WAXIE SANITARY SUPPLY INC custodial supplies: theater 394.17 394.17 121083 12/2012007 003730 WEST COAST ARBORISTS INC 1111-15107 tree trimming srvcs:citywide 2,826.00 Tree removal:S-08 Villages/EOC Oper. 843.60 tree removal srvcs:EOC operations 480.00 4,149.60 121084 12120/2007 011644 WHEELER, RAYLENE refund:permit141322 Placer Lafite 74.00 74.00 121085 12120/2007 011313 WIELAND ASSOCIATES INC hospital noise study reprt:Planning dept 636.00 636.00 121086 12120/2007 004774 WOODCREST UNIFORMS uniform srvcs:police 44.03 44.03 Grand total for UNION BANK OF CALIFORNIA: 1,197,820.25 Page:12 apChkLst Final Check List Page: 13 12/2012007 11:22:16AM CITY OF TEMECULA 162 checks in this report. Grand Total All Checks: 1,197, 820.25 Page:13 ITEM NO. 4 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: January 8, 2008 SUBJECT: City Treasurer's Report as of November 30, 2007 PREPARED BY: Rudy Graciano, Revenue Manager Shannon Buckley, Accountant RECOMMENDATION: Approve and file the City Treasurer's Report as of November 30, 2007. BACKGROUND: Government Code Sections 53646 and 41004 require reports to the City Council regarding the City's investment portfolio, receipts, and disbursements respectively. Adequate funds will be available to meet budgeted and actual expenditures of the City for the next six months. Current market values are derived from the Local Agency Investment Fund (LAIF) reports, Union Bank of California trust and custody statements, and from US Bank trust statements. Attached is the City Treasurer's Report that provides this information. The City's investment portfolio is in compliance with the statement of investment policy and Government Code Sections 53601 and 53635 as of November 30, 2007. FISCAL IMPACT: None. ATTACHMENTS: City Treasurer's Report as of November 30, 2007 City of Temecula Aft - , City of Temecula, Californ is 43200 Business Park Drive { Portfolio Management TemecuP.O. Box 9033 la, CA, 92590 Portfolio Summary (951)694-6430 November 30, 2007 Par Market Book % of Days to YTM YTM Investments Value Value Value Portfolio Term Maturity 360 Equiv. 365 Equiv. Certificates of Deposit - Bank 970,451.03 9?u,451,03 970,451.03 0.47 1,079 914 5.548 5.625 Managed Pool Accounts 84,375,689.14 84,375,689.14 84,375,689.14 40.79 1 1 5.101 5.171 Letter of Credit 3.00 3.00 3.00 0.00 1 1 0.000 0.000 Local Agency I nvestment Funds 67,813,181.31 67,840,825.14 67,813,181.31 32.79 1 1 5.168 5.240 Federal Agency Callable Securities 47,615,000.00 47,857,373.25 47,613,125.00 23.02 1,410 745 4.280 4.339 Federal Agency Bullet Securities 1,000,000.00 1,030,310.00 1,000,000.00 0.48 1,216 907 4.934 5.002 Investment Contracts 5,066,488.76 5,066,488.76 5,066,488.76 2.45 9,336 7,219 4.289 4.349 206,840,813.24 207,141,140.32 206,838,938.24 100.00% 565 358 4.915 4.983 Cash and Accrued Interest Passbook/Checking -894,572.94 -894,572.94 -894,572.94 0 0 0.000 0.000 (not included in yield calculations) Accrued Interest at Purchase 16,670.29 16,670.29 Subtotal -877,902.65 -877,902.65 Total Cash and Investments 205,946,240.30 206,263,237.67 205,961,035.59 565 358 4.915 4.983 Total Earnings November 30 Month Ending Fiscal Year To Date Current Year 833,972.56 4,722,221.05 Average Daily Balance 208,764,216.86 204,083,442.57 Effective Rate of Return 4.86% 5.52% Reporting period 11!0112007-11130/2007 Run Date' 1 2120200 7 - 1;. Z's Portfolio TEME CID PM (PRF_PM1) SymRept 8.41.202a Report Ver. 5.00 City of Temecula, California Portfolio Management Portfolio Details - Investments November 30, 2007 Page 2 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment 1# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Certificates of Deposit - Bank 94666006-1 03-4 RESERVE USBANK 08/29/2007 96,467.50 96,467.50 96,467.50 5.080 5.080 5.151 93 03/03/2008 95453516-2 88-12GENIM2 USBANK 06/12/2007 873,983.53 673,983.53 873,983.53 5.600 5.600 5.678 1,005 09/01/2010 Subtotal and Average 970,451.03 970,451.03 970,451.03 970,451.03 5.548 5.625 914 Managed Pool Accounts 104346006 01-2 IMP 104348006 01-2 RES A 104346016 01-2 RES B 104348000 01-2 SP TAX 94669911 03-1 ACQ Al 94669921 03-1 ACQ BI 94669902 03-1 BOND 94669916 03-1 RES B 94669000 03-1 SP TAX 793593011 03-2 ACQ 793593009 03-2 EMW D 793593007 03-2 IMP 793593010 03-2 PW ADM 793593006 03-2 RES 793593000 03-2 SP TX 744727011 03-3 ACQ 1 744727002 03-3 BOND 744727007 03-3 CITY 1 744727009 03-3 EMW D 1 94669000 03-3 SP TAX 94666001 03-4 ADMIN 94686005 03-4 PREPMT 94666000 03-4 REDEMP 94686006 03-4 RES 78776002 03-6 BOND 786776007 03-6IMP 786776006 03-6 RES 786776000 03-6 SP TAX 95453510 88-12 BOND 95453518 88-12 GEN 1 107686000 RDA 06 A INT 107886010 RDA 06 B INT 107886006 RDA 06 CIP A Ruri Dc t 12,2 - 13.33 First American Treasury 252,332.69 252,332.69 252,332.69 2.510 2.476 2.510 1 First American Treasury 464,360.97 464,360.97 464,360.97 2.510 2.476 2.510 1 First American Treasury 213,764.74 213,764.74 213,764.74 2.510 2.476 2.510 1 First American Treasury 30,720.19 30,720.19 30,720.19 2.510 2.476 2.510 1 First American Treasury 4,192.39 4,192.39 4,192.39 2.510 2.476 2.510 1 First American Treasury 14,829.30 14,829.30 14,629.30 2.510 2.476 2.510 1 First American Treasury 0.34 0.34 0.34 2.940 2.900 2.940 1 First American Treasury 244,521.50 244,521.50 244,521.50 2.510 2.476 2.510 1 First American Treasury 147,296.46 147,296.46 147,296.46 2.510 2.476 2.510 1 First American Treasury 90,303.01 90,303.01 90,303.01 2.510 2.476 2.510 1 First American Treasury 4,150.03 4,150.03 4,150.03 2.510 2.476 2.510 1 First American Treasury 3,37722 3,377.22 3,377.22 2.510 2.476 2.510 1 First American Treasury 2,009.07 2,009.07 2,009.07 2.510 2.476 2.510 1 First American Treasury 360.66 360.66 360.66 2.510 2.476 2.510 1 First American Treasury 1,504.83 1,504.63 1,504.83 2.510 2.476 2.510 1 First American Treasury 8,922.25 8,922.25 8,922.25 2.510 2.476 2.510 1 First American Treasury 0.51 0.51 0.51 1.960 1.933 1.960 1 First American Treasury 155.67 155.67 155.67 2.510 2.476 2.510 1 First American Treasury 135.21 135.21 135.21 2.510 2.476 2.510 1 First American Treasury 63,131.24 63,131.24 63,131.24 2.510 2.476 2.510 1 First American Treasury 17,550.02 17,550.02 17,550.02 2.510 2.476 2.510 1 First American Treasury 3,995.03 3,995.03 3,995.03 2.510 2.476 2.510 1 First American Treasury 7,238.50 7,236.50 7,238.50 2.510 2.476 2.510 1 First American Treasury 11,765.15 11,765.15 11,765.15 2.510 2.476 2.510 1 First American Treasury 0.02 0.02 0.02 4.740 4.675 4.740 1 First American Treasury 17.84 17.84 17.84 2.520 2.465 2.520 1 First American Treasury 341,497.40 341,497.40 341,497.40 2.510 2.476 2.510 1 First American Treasury 688.29 688.29 688.29 2.510 2.476 2.510 1 First American Treasury 43,393.83 43,393.63 43,393.83 2.510 2.476 2.510 1 First American Treasury 07/01/2007 14,091.96 14,091.96 14,091.96 2.510 2.476 2.510 1 First American Treasury 36,236.80 36,236.60 36,236.80 2.510 2.476 2.510 1 First American Treasury 1,956.17 1,956.17 1,956.17 2.510 2.476 2.510 1 First American Treasury 908.32 908.32 906.32 2.510 2.476 2.510 1 Portfolio TEME CID PM (PPF_PM2) SymRept 6.41.202a Report Ver. 5.00 City of Temecula, California Portfolio Management Portfolio Details - Investments November 30, 2007 Page 3 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment t# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Managed Pool Accounts 107886018 RDA 06 CIP B First American Treasury 6,696.73 6,696.73 6,696.73 2.510 2.476 2.510 1 107866009 RDA 06 COI A First American Treasury 0.00 0.00 0.00 4.120 4.064 4.120 1 107686019 RDA 06 COI B First American Treasury 0.00 0.00 0.00 4.120 4.064 4.120 1 107886016 RDA 06 RES B First American Treasury 8,752.99 8,752.99 6,752.99 2.510 2.476 2.510 1 107886030 RDA 07 CAP I First American Treasury 11i01 /2007 65.90 65.90 65.90 2.500 2.466 2.500 1 107886029 RDA 07 COI First American Treasury 11/01/2007 73,915.56 73,915.56 73,915.56 2.510 2.476 2.510 1 107686027 RDA 07 ESCRO First American Treasury 11101/2007 446.33 446.33 446.33 2.510 2.476 2.510 1 107886026 RDA 07 PROJE First American Treasury 11/01/2007 1,576.64 1,576.64 1,576.64 2.510 2.476 2.510 1 107686026 RDA 07 RESER First American Treasury 11/01/2007 89.76 69.76 89.76 2.510 2.476 2.510 1 94434160 RDA TABs INT First American Treasury 714.47 714.47 714.47 2.510 2.476 2.510 1 94432360 TCSD COPs IN First American Treasury 722.26 722.28 722.28 2.510 2.476 2.510 1 793593011-1 03-2-1 ACQUI CA Local Agency Investment Fun 07/01/2007 40,256,406.28 40,256,406.28 40,256,406.28 5.240 5.168 5.240 1 793593009-1 03-2-1 EMW D CA Local Agency Investment Fun 07/01/2007 1,472,45025 1,472,450.25 1,472,450.25 5.240 5.168 5.240 1 793593007-1 03-2-1 IMPRO CA Local Agency Investment Fun 07/01/2007 1,132,687.26 1,132,887.26 1,132,887.26 5.240 5.168 5.240 1 793593010-1 03-2-1 PW AD CA Local Agency Investment Fun 07/01/2007 682,157.81 682,157.81 682,157.81 5.240 5.168 5.240 1 793593006-3 03-2-3 RESER CA Local Agency Investment Fun 07101/2007 3,673,546.15 3,673,546.15 3,673,546.15 5.240 5.168 5.240 1 107886008-1 RDA 06 CIP-1 CA Local Agency Investment Fun 16,949,273.61 16,949,273.61 16,949,273.61 5.240 5.168 5.240 1 107886018-2 RDA 06 CIP-2 CA Local Agency Investment Fun 2,889,577.51 2,889,577.51 2,869,577.51 5.240 5.166 5.240 1 1 0768603 0-1 RDA 07 CAP-1 CA Local Agency Investment Fun 11/01/2007 596,531.25 596,531.25 596,531.25 5.240 5.168 5240 1 107686027-1 RDA 07 ESC-1 CA Local Agency Investment Fun 11/01/2007 4,040,000.00 4,040,000.00 4,040,000.00 5.240 5.168 5.240 1 107886028-1 RDA 07 PRO-1 CA Local Agency Investment Fun 11/01/2007 9,752,016.75 9,752,018.75 9,752,018.75 5.240 5.168 5.240 1 107886026-1 RDA 07 RES-1 CA Local Agency Investment Fun 11/01/2007 612,450.00 612,450.00 812,450.00 5.240 5.168 5.240 1 107886006 RDA 06 RES A MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190 1 94434166 RDA TABS RES MBIA Surety Bond 1.00 1.00 1.00 2.190 2.160 2.190 1 Subto tal and Average 84,629,812.41 84,375,689.14 84,375,689.14 84,375,689.14 5.101 5.171 1 Letter of Credit 104348006-1 02006 ASSURANCE CO BOND INSURANCE 07,01/2007 1.00 1.00 1.00 0.000 0.000 793593006-2 02006 Citibank, N.A. 07/01/2007 1.00 1.00 1.00 0.000 0.000 793593006-1 02005 Ohio Savings Bank 07/01/2007 1.00 1.00 1.00 0.000 0.000 Subtotal and Average 3.00 3.00 3.00 3.00 0.000 0.000 1 Local Agency Investment Funds 94669911-1 03-1 ACQ A2 CA Local Agency Investment Fun 1,450,873.50 1,450,873.50 1,450,873.50 5.240 5.168 5.240 94669921-1 03-1 ACQ B2 CA Local Agency Investment Fun 3,659,694.09 3,659,694.09 3,659,694.09 5.240 5.168 5.240 744727011-1 03-3 ACQ 2 CA Local Agency Investment Fun 8,839,657.38 6,839,657.38 8,839,657.38 5.240 5.168 5.240 744727007-1 03-3 CITY 2 CA Local Agency Investment Fun 2,891,271.89 2,891,271.89 2,891,271.89 5.240 5.166 5.240 744727009-1 03-3 EMW D 2 CA Local Agency Investment Fun 527,657.31 527,657.31 527,657.31 5.240 5.168 5.240 Portfolio TEME CID Run Date: 12120f2007 - 13 33 PM (PRF_PM2) SyrnRept 6.41.202a City of Temecula, California Portfolio Management Portfolio Details - Investments November 30, 2007 Page 4 CUSIP Investment it Average Issuer Balance Purchase Date Par Value Market Value Book Value Stated Rate YTM 360 YTM Days to Maturity 365 Maturity Date Local Agency Investment Funds 786776007-1 03-6 IMP 1 CA Local Agency Investment Fun 498,820.87 498,820.87 498,820.87 5.240 5.168 5.240 1 SYSCITY CITY CA Local Agency Investment Fun 20,524,216.82 20,535,576.64 20,524,216.82 5.240 5.166 5.240 1 SYSRDA RDA CA Local Agency Investment Fun 25,120,088.46 25,133,992.02 25,120,068.48 5.240 5.168 5.240 1 SYSTCSD TCSD CA Local Agency Investment Fun 4,300,900.97 4,303,281.44 4,300,900.97 5.240 5.168 5.240 1 Subtotal and Average 66,096,847.98 67,813,181.31 67,840,825.14 67,813,181.31 5.168 5.240 1 Federal Agency Callable Securities 31331XMA7 01058 Fed eral Farm Credit Bank 01/18/2007 2,000,000.00 2,003,760.00 2,000,000.00 5.400 5.326 5.400 1,509 01A6/2012 3133X4M1 01075 Federal Farm Credit Bank 09/28/2007 1,000,000.00 1,019,380.00 1,000,000.00 5.000 4.932 5,000 1,763 09128'2012 3133X55G9 01014 Federal Home Loan Bank 04'08/2004 3,050,000.00 3,046,187.50 3,050,000.00 3.100 3.058 3.101 36 01;08/2008 3133X5256 01015 Federal Home Loan Bank 04/07/2004 2,965,000.00 2,961,293.75 2,965,000.00 3.000 2.960 3.001 37 01/07/2008 3133X55H7 01016 Federal Home Loan Bank 03/29/2004 3,000,000.00 2,997,180.00 3,000,000.00 3.000 2.960 3.001 27 12/28/2007 3133X55H7 01017 Federal Home Loan Bank 03/2912004 1,000,000.00 999,060.00 1,000,o0D.D0 3.000 2.960 3.001 27 12./28/2007 3133X5DV7 01016 Federal Home Loan Bank 0414/2004 1,000,000.00 996,750.00 1,000,000.00 3.150 3.106 3.151 44 01/14/2008 3133XSGE2 01019 Federal Home Loan Bank 04/15/2004 2,000,000.00 1,996,880.00 2,000,000.00 3.070 3.029 3.071 45 01/15./2006 3133X5K49 01020 Federal Home Loan Bank 04/16/2004 1,000,000.00 998,440.00 1,000,000.00 3.125 3.083 3.126 46 01/16,'2008 3133X5QF8 01021 Federal Home Loan Bank 04/22/2004 2,000,000.00 1,996,260.00 2,000,000.00 3.000 2.960 3.D01 52 01122/2008 3133X5ZL5 01022 Federal Home Loan Bank 0430/2004 2,000,000.00 1,997,500.00 2,000,000.00 3.520 3.473 3.521 60 01/30/2008 3133XD2G5 01034 Federal Home Loan Bank 09/21/2005 3,000,000.00 3,000,000.00 2,996,125.00 4.375 4.347 4.407 20 12/21/2007 3133XD3R0 01036 Federal Home Loan Bank 09/28/2005 2,000,000.00 2,000,000.00 2,000,000.00 4.500 4.438 4.500 118 03/28/2008 3133XD6F3 01038 Federal Home Loan Bank 09/2812005 1,000,000.00 1,00,000.00 1,000,000.00 4.230 4.174 4.232 27 12./28/2007 3133XKGD1 01063 Federal Home Loan Bank 04125/2007 200,000.00 200,812.00 200,000.00 5.250 5.177 5.249 667 04/16/2010 3133XKGD1 01064 Federal Home Loan Bank 04/26/2007 1,000,000.00 1,004,060.00 1,000,000.00 5.250 5.177 5249 867 04./16./2010 3133XL4P5 01066 Federal Home Loan Bank 06/04/2007 1,000,000.00 1,005,630.00 1,000,000.00 5.300 5.227 5.300 916 06/04/2010 3133XL6S7 01067 Federal Home Loan Bank 06/06/2007 1,000,000.00 1,010,31000 1,000,000.00 6.000 5.918 6.000 1,649 06/06/2012 3133XLBS1 01068 Federal Home Loan Bank 07/19/2007 1,000,000.00 1,007,500.00 1,000,000.00 5.500 5.423 5.496 937 06/25/2010 3133XLSQ7 01069 Federal Home Loan Bank 07/30./2007 1,000,000.00 1,030,000.00 1,000,000.00 5.650 5.573 5.650 1,703 07/30/2012 3133XLXW8 01071 Federal Home Loan Bank 08/15/2007 1,000,000.00 1,010,310.00 1,000,000.00 5.500 5.425 5.500 1,719 08/15/2012 3133XK2N4 01072 Federal Home Loan Bank 08/24/2007 2,000,000.00 2,036,260.OD 2,000,000.00 5.330 5.256 5.329 1,557 03./06/2012 3133XM5R6 01073 Federal Home Loan Bank 08,'28/2007 1,000,000.00 1,023,130.00 1,000,000.00 5.080 5.011 5.080 1,364 08!26/2011 3133XMSE7 01074 Federal Home Loan Bank 08/28/2007 1,000,000.00 1,023,440.00 1,000,000.00 5.220 5.135 5.206 1,732 08128/2012 3133XMDMO 01077 Federal Home Loan Bank 10/02/2007 1,000,000.00 1,009,060.00 1,000,000.00 5.300 5.227 5.300 1,767 10/02/2012 3133XMLM1 01079 Federal Home Loan Bank 10/17/2007 1,000,000.00 1,009,380.00 1,000,000.00 5.000 4.930 4.999 1,416 10/17/2011 3133XMLG4 01080 Federal Home Loan Bank 10,'18/2007 1,000,000.00 1,009,690.00 1,000,000.00 5.200 5.128 5.200 1,774 10/09'2012 3133XKH24 1062 Federal Home Loan Bank 04/16./2007 1,000,000.00 1,018,750.00 1,000,000.00 5.250 5.178 5.250 1,598 04/16/2012 3128X6ML7 01076 Federal Home Loan Mtg Corp 10/01/2007 1,000,000.00 1,006,890.00 1,000,000.00 5.000 4.932 5.000 1,035 10/01/2010 3128X6MQ6 01081 Federal Home Loan Mtg Corp 10/18/2007 1,000,000.00 1,008,720.00 1,00,00D.D0 5.250 5.177 5.249 1,766 10./01/2012 3126X6RP3 01082 Federal Home Loan Mtg Corp 11/28/2007 1,400,000.00 1,398,110.00 1,400,000.00 4.600 4.537 4.600 1,091 11/26/2010 PuroLr 1 2r-1 2 sT-vs_,1 Portfolio TEME CID PM (PPF_PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Portfolio Details - Investments November 30, 2007 Page 5 Average Purchase Stated YTM YTM Days to Maturity CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Date Federal Agency Callable Securities 31398ADF6 01070 Federal National Mtg Assn 08/09./2007 1,000,000.00 1,008,750.00 1,000,000.00 5.600 5.521 5.598 1,655 06/12/2012 3136F8TE5 01078 Federal National Mtg Assn 10/15/2007 1,000,000.00 1,009,380.00 1,000,000.00 5.002 4.936 5.005 1,322 07/15/2011 31398ABCS 1065 Federal National Mtg Assn 05/11/2007 1,000,000.00 1,012,500.00 1,000,000.00 5.300 5.227 5.300 1,619 05./07/2012 Subtotal and Average 46,753,125.00 47,615,000.00 47,857,373.25 47,613,125.00 4.280 4.339 745 Federal Agency Bullet Securities 31331XMQ2 01059 Federal Farm Credit Bank Subtotal and Average 1,966,666.67 01/26/2007 1,000,000.00 1,030,310.00 1,000,000.00 5.000 1,000,000.00 1,030,310.00 1,000,000.00 4.934 5.002 907 05./2612010 4.934 5.002 907 Investment Contracts 94669906-1 03-1 RES A2 American International Group M 04,!28/2004 663,900.00 863,900.00 663,900.00 4.830 4.764 4.830 9,405 08/31/2033 744727006-1 03-3 RESERV IXIS Funding Corp 07/28/2004 2,171,120.00 2,171,120.00 2,171,120.00 3.000 2.959 3.000 9,770 08/31/2034 95453516-1 86-12 GEN IM IXIS Funding Corp 07,124/1998 500,000.00 500,000.00 500,000.00 5.430 5.509 5.565 3,562 09/01/2017 95453516-1 88-12 RES 2 IXIS Funding Corp 07/24/1998 1,531,468.76 1,531,468.76 1,531,466.76 5.430 5.509 5.565 3,562 09/01/2017 Subtotal and Average 5,066,488.76 5,066,488.76 5,066,488.76 5,066,488.76 4.289 4.349 7,219 Total and Average 208,764,216.86 206,840,813.24 207,141,140.32 206,838,938.24 4.915 4.983 358 Portfolio TEME CID Run Date: 12120f2007 - 13 33 PM (PRF_PM2) SymRept 6.41.202a City of Temecula, California Portfolio Management Portfolio Details - Cash November 30, 2007 Page 6 Average Purchase Stated YTM YTM Days to CUSIP Investment# Issuer Balance Date Par Value Market Value Book Value Rate 360 365 Maturity Retention Escrow Account SYSBARNHART 1 BARNHART 1 California Bank & Trust 134,646.06 134,646.06 134,646.06 3.040 2.998 3.040 1 PREMIER BANK PREMIER BANK PREMIER BANK 0.00 0.00 0.00 5.000 4.932 5.000 1 PFF BANK & TRUS PFF BANK PFF BANK & TRUST 9,697.10 9,697.10 9,697.10 1.736 1.712 1.736 1 Passbook/Checking Accounts SYSPetty Cash Petty Cash City of Temecula 07/01/2007 2,710.00 2,710.00 2,710.00 0.000 0.000 1 SYSFIex Ck Acct Flex Ck Acct Union Bank of California 07/0112007 19,210.64 19,210.64 19,210.64 0.000 0.000 1 SYSGen CkAcct Gen CkAcct Union Bank of California 07/01/2007 -1,075,982.24 -1,075,982.24 -1,075,982.24 0.000 0.000 1 SYSParking Ck PARKING CITA Union Bank of California 07/01/2007 15,145.50 15,145.50 15,145.50 0.000 0.000 1 Average Balance 0.00 Accrued Interest at Purchase 16,670.29 16,670.29 0 Subtotal -877,902.65 -877,902.65 Total Cash and Investmentss 208,764,216.86 205,946,240.30 206,263,237.67 205,961,035.59 4.915 4.983 358 Run Ei at : 12F--'i '~i?!5 - 13.1,3 Portfolio TEME CID PM (PPF_PM2) SymRept 6.41.202a CASH AND INVESTMENTS REPORT CITY OF TEMECULA THROUGH NOVEMBER 2007 Fund Total 001 GENERAL FUND $ 44,667,454.87 100 STATE GAS TAX FUND 447,934.81 101 STATE TRANSPORTATION FUND 6,883.08 120 DEVELOPMENT IMPACT FUND 5,454,741.45 140 COMMUNITY DEV BLOCK GRANT 26,883.00 150 AB 2766 FUND 408,254.44 160 AB 3229 COPS 0.00 165 RDA DEV LOW/MOD 200/. SET ASIDE 9,061,851.77 170 MEASURE A FUND 6,514,681.00 190 TEMECULA COMMUNITY SERVICES DISTRICT 866,219.91 192 TCSD SERVICE LEVEL "B" STREET LIGHTS 24.00 193 TCSD SERVICE LEVEL"C LANDSCAPE/SLOPE 11,532.15 194 TCSD SERVICE LEVEL °D" REFUSE/RECYCLING 296,991.47 195 TCSD SERVICE LEVEL "R" STREET/ROAD MAINT 35,468.52 196 TCSD SERVICE LEVEL "L" LAKE PARK MAINT. 207,423.77 197 TEMECULA LIBRARY FUND 1,291,921.94 210 CAPITAL IMPROVEMENT PROJECT FUND 21,393,110.51 261 CFD 88-12 ADMIN EXPENSE FUND 0.00 271 CFD 01-2 HARVESTON IMPROVEMENT FUND 0.00 272 CFD 01-2 HARVESTON A&B IMPROVEMENT FUND 252,332.69 273 CFD 03-1 CROWNE HILL IMPROVEMENT FUND 5,129,589.28 274 AD 03-4 JOHN WARNER IMPROVEMENT FUND 0.00 275 CFD 03-3 WOLF CREEK IMPROVEMENT FUND 12,267,799.71 276 CFD 03-6 HARVESTON 2 IMPROVEMENT FUND 498,838.71 277 CFD-RORIPAUGH 42,959,574.05 280 REDEVELOPMENT AGENCY - CIP PROJECT 31,859,590.52 300 INSURANCE FUND 1,548,971.35 310 VEHICLES FUND 590,147.48 320 INFORMATION SYSTEMS 549,402.10 330 SUPPORT SERVICES 270,819.22 340 FACILITIES 117,425.50 380 RDA 2002 TABS DEBT SERVICE 6,269,491.03 390 TCSD 2001 COP'S DEBT SERVICE 7,787.34 460 CFD 88-12 DEBT SERVICE FUND 3,374,815.74 470 CFD 01-2 HARVESTON DEBT SERVICE FUND 0.00 471 CFD 98-1 WINCHESTER HILLS DEB SERVICE 0.00 472 CFD 01-2 HARVESTON A&B DEBT SERVICE 784,267.25 473 CFD 03-1 CROWNE HILL DEBT SERVICE FUND 1,299,542.16 474 AD 03-4 JOHN WARNER ROAD DEBT SERVICE 153,620.43 475 CFD 03-3 WOLF CREEK DEBT SERVICE FUND 2,529,426.75 476 CFD 03-6 HARVESTON 2 DEBT SERVICE FUND 353,044.70 477 CFD- RORIPAUGH 4,755,374.97 Grand Total: $ 206,263,237.67 ITEM NO. 5 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: January 08, 2008 SUBJECT: Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended June 30, 2007 PREPARED BY: Jason Simpson, Assistant Finance Director RECOMMENDATION: That the City Council approve the Comprehensive Annual Financial Statements, Auditor's Report, and Management's Discussion and Analysis (MD&A) for Fiscal Year Ended June 30, 2007. BACKGROUND: As a result of a new accounting rule, Governmental and Accounting Standards Board's (GASB) Statement Number 34, Basic Financial Statements and Management's Discussion and Analysis (MD&A) for State and Local Governments, the City is required to change the presentation of its annual financial statements and analysis effective with the fiscal year ending June 30, 2003. This is the fourth year the City has presented its financial results in this format. Staff has reviewed and approved the reports with Diehl, Evans & Company, LLP. FISCAL IMPACT: None. ATTACHMENTS: Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ended June 30, 2007 THE ECULA cuy/ur)-F TEEM INC. 1989 CALIFORNIA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2007 MAYOR Chuck Washington MAYOR PRO TEMPORE Michael S. Naggar COUNCIL MEMBERS Maryann Edwards Jeff Comerchero Ronald H. Roberts CITY MANAGER Shawn D. Nelson Prepared by the Finance Department Genie Roberts, CPA Director of Finance COMPRIE14ENSIVIE .ANNUAL., ]E][N AN C AL REPORT FOR THE FISCAL, YEAR ElDIED JUNE 30, 2007 TABLE OF CONTENTS Page Nmnber INTRODUCTORY SECTION: Letter of Transmittal v-x Government Finance Officers Association Award xi Organizational Chart xii Staff Directory xiii FINANCIAL SECTION: Independent Auditors' Report 1-2 Management's Discussion and Analysis (Required Supplementary Information) . 3-12 Basic Financial Statements / Government-Wide Financial Statements : Statement of Net Assets .....13 Statement of Activities .....15 Fund Financial Statements / Governmental Funds: Balance Sheet 16-17 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets .....19 Statement of Revenues, Expenditures and Changes in Fund Balances 20-21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities .....22 Proprietary Funds: Statement of Net Assets .....23 Statement of Revenues, Expenses and Changes in Fund Ne Assets 24 Statement of Cash Floes .....25 -i- TABLE OF CONTENTS - Continued Page Number Fiduciary Funds: Statement of Fiduciary Assets and Liabilities .....................................26 Notes to Basic Financial Statements 27-66 SUPPLEMENTAL SCHEDULES: Required Supplementary Information: 67 Budgetary Comparison Schedules: General Fund 69-70 Community Services District Special Revenue Fund 71 Redevelopment Agency Special Revenue Fund ..................................72 Note to Required Supplementary Information ...........................................73 Other Governmental Funds ..............75 Combining Balance Sheet ..............77 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............78 Other Special Revenue Funds: 79 Combining Balance Sheet 80-81 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 82-83 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Gas Tax Special Revenue Fund ..............84 State Transportation Special Revenue Fund ..............85 CDBG Special Revenue Fund ..............86 AB 2766 Special Revenue Fund ..............87 AB 3229 COPS Special Revenue Fund ..............88 Measure "A" Special Revenue Fund ..............89 Development Impact Special Revenue Fund ..............90 Other Debt Service Funds: 91 Combining Balance Sheet ..............93 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ..............94 Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual: Redevelopment Agency Debt Service Fund ..............95 Community Services District Debt Service Fund ..............96 -ii- TABLE OF CONTENTS - Continued Page Number Other Capital Project Funds: 97 Combining Balance Sheet 98-99 Combining Statement of Revenues, Expenditures and Changes in Fund Balances . 100-101 Internal Service Funds: 103 Combining Statement of Net Assets . 104-105 Combining Statement of Revenues, Expenses and Changes in Net Assets . 106-107 Combining Statement of Cash Flows . 108-109 Agency Fund: 111 Statement of Changes in Fiduciary Assets and Liabilities .........112 STATISTICAL SECTION: Description of Statistical Section Contents .........113 Locator Map .........115 Financial Trends: Net Assets by Component - Last Five Fiscal Years .........116 Changes in Net Assets - Last Five Fiscal Years .........117 Fund Balances of Governmental Funds - Last Five Fiscal Yea rs 118 Changes in Fund Balances of Governmental Funds - Last Five Fiscal Years .........119 Government-Wide Revenues - Last Ten Fiscal Years .........120 Government-Wide Expenses by Program - Last Ten Fiscal Years... 121 General Governmental Revenues by Source - Last Ten Fiscal Years .........122 General Governmental Expenditures by Function - Last Ten Fiscal Years .........123 Revenue Capacity: Property Tax Rates - Direct and Overlapping Governments - Last Ten Fiscal Years .........124 Principal Secured Property Owners - Last Ten Fiscal Years . 125-126 Property Tax Levies and Collections - Last Ten Fiscal Years 127 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years .........128 -iii- TABLE OF CONTENTS - Continued Page Number Debt Capacity: Ratio of Outstanding Debt by Type - Last Ten Fiscal Years 129 Ratio of General Bonded Debt - Last Ten Fiscal Years ....................130 Schedule of Direct and Overlapping Debt .........................................131 Legal Debt Margin - Last Ten Fiscal Year 132-133 Pledged Revenue Coverage - Last Ten Fiscal Years .........................134 Demographic and Economic Information: Demographic and Economic Statistics - Last Ten Calendar Years... 135 Largest Employers by Number of Employees ...................................136 Operating Information Operating Indicators by Function ......................................................137 Full-Time City Employees - Last Ten Fiscal Years ..........................138 Capital Asset Statistics by Function - Last Four Fiscal Years 139 Comparative City Information - Fiscal Year 2006-07 Operating Budget .............................................140 Demographics and Miscellaneous Statistics ......................................141 -iv- CITY OF TEMECULA •43200 Business Park Drive. *PO Box 9033• .Temecula •California•92589-90339 •Phone(951) 694-64449 FAX (951) 694-6479 November 9, 2007 Honorable Mayor, Members of the City Council, and City Manager: Introductory Section Financial Section (Supplemental Schedules) Statistical Section likely to be by Letter of Transmittal, GFOA Certificate of Achievement for Excellence in Financial Reporting, the City's Organizational C fart, and Stag D1reCtOIy. Independent Auditors' Report, Management's Discussion and Analysis (IVID&A), basic financial statements, notes to the basic financial statements, required supplementary information (RSI), and combining and individual fund financial statements and schedules. Pertinent financial and non-financial data that present historical trends and other information about the City. able assurance recognizes that: (1) the cost of the control should not (2) the valuation of costs and benefits requires estimates and judgments - V - In accordance with the aforementioned guidelines, the accompanying report is presented in three sections: The City maintains budgetary controls to ensure compliance with legal provisions embodied in the annual budget adopted by the City Council. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established at die department level. It is the policy of the City of Temecula to have an audit performed annually by an independent certified public accountant. Diehl, Evans and Company performed the independent audit of the June 30, 2007 financial statements. Their opinion is included with the basic financial statements. THE CITE' OF TEMECULA AND ITS SERVICES the City incorporated under the general laws of the State of The activities of the TCSD are included with the the City Council, serving as the Board of Directors, has matters. The County of Riverside transferred responsibility for the Temecula. Redevelopment Agency (RDA) to the City on July 1, 1991. The County established the project area in 1988. The activities of the RDA are included with the activities of the City for financial reporting purposes, because the City Council, serving as the Board of Directors, has full accountability for the RDA's fiscal matters. The Industrial Development Authority of the City of Temecula (Authority) was activated on March 22, 1994. The purpose of the Authority is to provide alternative methods of financing certain facilities in order to prevent the loss of existing jobs, increase employment opportunities, and otherwise contribute to the economic development of the City. The activities of the Authority are included with the activities of the City for financial reporting purposes because the City Council, serving as the Board of Directors, has full accountability for the Authority's fiscal matters. The Temecula Public Financing Authority (TPFA) was established pursuant to a Joint Exercise of Powers Agreement, dated April 24, 2001, by and between the City and the Redevelopment Agency. The City and the Redevelopment Agency formed the TPFA for the primary purpose of assisting in the financing and refinancing of a community facilities district and the issuance of bonds necessary to finance the public improvements. The TPFA may establish other community facilities districts in the future in connection with the financing of public improvements in the City and could also be used in connection with other City and Agency financings. ACCOMPLISMIENTS Under the direction of the City Council and City Manager, department staff made significant strides toward the goals set forth for FY 2006-07. The City Council completed the new Temecula Library on Pauba Road, approved the Civic Center Master Plan for Old Town Temecula, completed median improvements on Highway 79 South, and obtained additional funds through the Tribal Gaming-Special Distribution Fund. The City also continued the Community F.I.T. (Fitness in Temecula) Program, which promotes healthy dieting and exercise. In addition, the City provided for a police ratio of one officer per 890 residents. Other significant departmental accomplishments are as follows: Community Services During the past year the Development Services Division of the Community Services Department successfully opened the new Community Theater in Old Town and completed the Patricia H. Birdsall Sports Park. The Recreation Services Division has continued to expand the recreation opportunities available to youth, adults, and senior citizens. During the past year, the Recreation Services Division expanded the holiday bus tour program offered, as well as the Breakfast with Santa program. In addition, staff implemented a successful Summer History Camp. Ongoing recreation services include teen activities, recreation classes, special events and excursions, youth and adult sports programs, summer day camp, summer science camp, and aquatics activities. Recreation Services Division staff coordinated many other community events such as the Spring Egg Hunt, Star-Spangled 4h of July Parade, Summer Concert Series, Halloween Spooktacular, Breakfast with Santa, Holiday Lights and Festive Sights, and Santa's Electric Light Parade. -v1- Public AVorks The Capital Projects Division of the Public Works Department has the responsibility for obtaining engineering proposals, coordinating design, requesting bids, and construction administration for capital improvement projects (including park facilities). Over the past year, this division was responsible for the completion of the new 34,000 square foot Temecula library and associated improvements on Pauba Road, as well as the 43-acre Patricia H. Birdsall Sports Park complex at Pechanga Parkway and Deer Hollow. The Maintenance Division has been extremely busy performing street and storm drain maintenance, street striping, street sign replacement, tree planting, tree trimming, graffiti removal and right-of-way weed abatement. This year, 81 new street trees were planted through the "Trees for Temecula" program. This division is responsible for responding to emergency calls in support of the City Police and Fire Departments. The Traffic Division has the primary responsibility to evaluate the need for traffic control devices such as stop signs, traffic signals and a variety of advisory signs. The division conducts necessary traffic studies and prepares reports for the Traffic Safety Commission, which makes recommendations to the City Council regarding traffic issues in the City. During the past year, this division prioritized the installation of the Closed Circuit Television (CCTV) cameras and communication systems in accordance with the new Citywide Master Plan. Community Development The Land Development Division of the Community Development Department reviewed, plan checked, and inspected numerous residential, commercial, and circulation improvement projects. They reviewed and conditioned major projects such as Crowne Hill, Old Town, Temecula Regional Mall, Roripaugh Ranch, Harveston Phase II, Wolf Creek Phase I, and Temecula Creek Villages. Also, staff implemented the Water Quality Management Plan (WQMP) while inspecting and enforcing compliance of NPDES and FEMA review and oversight programs. The Planning Division processed numerous applications for new commercial and industrial projects. During the past year, the Planning Division completed the General Plan annual Implementation Report and continued the process of comprehensively updating the City General Plan. The Planning Division completed the streamlining of the development review process and organized the formation of a Citywide Process Improvement Team. The Building and Safety Division redesigned the permit application to guide customers/builders through the process. The division continued the new inspection points system to provide equitable inspection availability for all tract developers resulting in the elimination of "rollover" inspections. The division developed joint fire and building inspection training along with a program for managing pen-nit expirations and continued the "Builder's Comer", a do-it-yourself project series on the City's website. In addition, the "Express Permits Desk" continued for expedited issuance of permits for water heaters, patio covers, and walls and to meet customer service goals. The Code Enforcement Division continued the enforcement of City land use and building codes, as well as the abatement of nuisances, which includes weed and abandoned vehicle abatement. This division was also critical in the successful annexation of the Redhawk area into the City. Fire Services The Temecula Fire Department has continued to respond to all types of fires, medical emergencies, vehicle collisions, hazardous materials spills, and public assists within the City. Fire prevention education for the City's school children remains a big priority. Fire station personnel conduct fire safety inspections in our local businesses to ensure fire and life safety for all employees and customers. Fire protection planning staff performed plan checks and inspections on the many new development projects occurring within the City. Weekend and evening inspections were provided for special events and temporary use permits. - vll - Police Services The to to to law enforcement and public safety nany community special events and -Public Datety Justice training to include Middle 'Schools. Curriculum w justice system and penalties for crimes. The Police Department also in City patrol cars. The department's Crime Prevention Unit continues to provide crime residents and businesses. Much of this is accomplished by heading loci. organizations. The trine prevention officer works closely with other Ci special events held in the City each year, and assists in the processing permits. Economic Development The goal is to provide a variety of This division also expanded the to include explanation of criminal D1tf1AR pre-emotive devices in the ention training and services to City ;hborhood Watch and Business Watch ff in advance planning for a variety of issuance of a variety of City-required In the past year, the City has experienced significant interest in relocation and expansion of existing businesses. The City has continued to work with the Chamber of Commerce and the Temecula Valley Economic Development Corporation in its effort to encourage the expansion or relocation of industries that generate local sales tax and employment advantages. The City has also worked to develop and market Temecula as a tourist destination. During the past year, the City's economic development activities have worked with colleges and community groups to facilitate planning of the Temecula Higher Education Center. Housing and Redevelopment The Facade Improvement Program assists property and business owners to make improvements to their buildings in conformance with the Old Town Specific Plan's old western design theme. The program offers grants, rebates and loans. This year, an Owner Participating Agreement was entered into for a development of 24 low/moderate rental units in conjunction with commercial/retail units on the first floor in an effort to expand multi-use development in Old Town. This will be a four-story building with the top three floors devoted to the low/moderate units. Development of this project will assist in the elimination of blight in the project area, providing affordable jobs and substantially improving the economic and physical condition in the project area. The Redevelopment Agency also successfully kicked off the "Hot Summer Friday Nights" which is an annual series of events in Old Town Temecula. The Friday nights featured entertainment adventures with live bands, games and prizes for the children on our community. ECONOXHC CONDITION AND OUTLOOK Local Economy The City of Temecula is a dynamic community comprised of approximately 97,935 citizens of various cultural backgrounds. The City has experienced a 261 percent growth in population since 1990, the fastest such growth rate of any city in Riverside or San Bernardino counties. The City's 2005 median family income was estimated at $68,051, and the 2005 average household income was $76,892. Sales tax continues to be the City's largest revenue source. Sales and Use Tax revenue is projected to increase from an estimate of $30,428,852 in FY 2006-07 to $31,421,280 in FY 2007-08 With the opening of the Promenade Mall in October 1999, and the ongoing commercial development in the area surrounding the mall, the City's sales tax base was strengthened and over 1,500 jobs were created. Temecula's taxable retail sales record is the envy of most. Inland Empire cities. In 1999, Temecula broke the $1 billion mark. Retail trade has increased in every year since the City's 1989 incorporation, even during Southern California's severe recession. As a result, the City's retail sales growth has exceeded that of rapidly expanding Riverside County throughout the decade. viii - Long-term Financial Planning The City Council annually adopts the five-year Capital Improvement Program (CIP) budget, which senses as a planning tool to coordinate the financing and scheduling of major projects undertaken by the City. It is revised to address changing needs, priorities, and financial conditions. The budget is developed by key management based on community comments and feedback, availability of funding, and priority ranking guidelines set by Council. Through workshops, the needs are identified by area, i.e., Circulation, Infrastructure/Other, Parks, and Redevelopment Agency. The FY 2008-12 CIP identifies a total of 82 projects consisti Infrastructure/Other Projects totaling $82,779,085; 20 Park AgencyiRDA Housing Projects totaling $47,523,840. The $416,055,573, of which $123,810,809 in expenditures is prc projects with unspecified funding sources. These projects I City, and will require that funding sources be identified bei associated with managing these projects has been estimate( construction costs), and included in each project budget. Circulation Projects totaling $275,309,030; 25 totaling $10,443,618, and 11 Redevelopment st to complete all of the proposed proiects is Y Zuk)i-ors ine sir is over Aso minion in entified as necessary infrastructure for the ects can commence. Achninistrative costs a five to twenty-five percent of estimated Some of the major projects planned for construction in the next few years include a new Civic Center in Old Town Temecula with a new parking structure, the new French Valley Interchange, Ultimate Interchange at I-15 and SR79 South, Old Town Gymnasium, and various park improvements. It is impossible to review the economic forces affecting Temecula and the Inland Empire without predicting a rosy future for the City. The region's geographic location, competitive cost structure and sophisticated logistics have put it in a position to have one of the nation's fastest growing economy. Temecula remains one of the fastest growing and most prosperous communities in the Inland Empire. Cash Management Policies and Practices The City Council annually adopts an investment policy, which is intended to minimize credit and market risks, while maintaining a competitive yield on its portfolio. During the 2006-07 fiscal year, idle funds were deposited in accordance with this policy in demand deposit accounts and invested primarily in a pooled investment account. administered by the State of California. Investment interest totaled $4,197,019 for the fiscal year ended June 30, 2007, or about 2.4% of the total City revenues. The City's portfolio earned monthly rates of return ranging from 1.1% to 4.41% on pooled investments, from 0.8% to 2.16% on the investment of cash held by fiscal agents and 5.58% on bond proceeds invested in bank investment agreements. At all times, the investment policy was adhered to, and safety and liquidity objectives were placed above rates of return considerations in making deposits and investments. All deposits during the year were either insured by the Federal Deposit Insurance Corporation, or collateralized. The majority of the City's investments were in the Local Agency Investment Fund (state pool). The state pool cannot be categorized in terms of credit risk in accordance with the guidelines of the Governmental Accounting Standards Board. Nevertheless, given the size and liquidity of the pool, the investment policies governing the pool, and the investment expertise of the pool's management, it is believed that these investments clearly conformed to the City's investment policy. Risk Management The City's insurance policies cover property, general liability, and worker's compensation exposures through basic deductibles, $150,000 self-insured retention, and flat fees, respectively. In the case of general liability coverage, the City's maximum coverage per occurrence is $10 million, while the aggregate coverage is $10 million, maximum. -1Z- The City's risk management program focuses on proactive identification of exposures to eliminate any potential impacts to public safety and welfare. This is accomplished through effectively monitoring City programs, particularly those in the Community Services and Public Works Departments, and by providing clear guidance to correct those situations where exposures have been identified. Additionally, the City works closely with all contracted insurance carriers to ensure that the transfer of liability occurs timely, when applicable. Pension and Other Post-Employment Benefits has a d disability ie plan is p an agent m hive agent ,ie to pay the employer's contribution rate, a: compensation to the extent allowable by law. amount not to exceed ~ percent The City contracts with private deferred compensation administration firms to act as agent of the City to fulfill all the City's administrative responsibilities. The amount deferred is not available to employees until termination, retirement, death or unavoidable emergency. The City offers these plans to the employees, but does not fund these plans. Project employees (part-time, temporary) are provided pension benefits through a defined contribution plan. Federal legislation requires contribution of at least 7.5 percent to a retirement plan. The City and the employee each contribute 3.75% of the employee's salary into the plan. The City's contribution is fully vested immediately. Medical Benefits are provided at time of retirement for all represented employees of the City who meet the eligibility requirements as defined as a PERS service or industrial disability retirement. Acknowledgements Preparation of the City's Comprehensive Annual Financial Report is an undertaking of the Finance Department. Special credit is due to Jason Simpson, Assistant Director of Finance; Judy McNabb, Administrative Assistant, as well as the entire Finance Department staff. Their year-long hard work and dedication have made this report possible. I would like to express my appreciation to the City Manager, the City Council, and the Finance Committee for their interest and support in planning and conducting the financial operations of the City in a responsible and progressive in anner. Sincerely, clenie ~Pokerfs, C~'C27f Genie Roberts, CPA Director of Finance - Y - CITY of TEMECULA GOVERNMENT FINANCE OFFICERS ASSOCIATION AWARD Certificate of Achievement for Excellence in Financial Reporting Presented to City of Temecula California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2006 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. tw= ~E 0 r X AIfOM~ 7n 1C,M President SEAL C*Cko Executive Director - xi - CrrY of TewcuL.,A CITY ORGANIZATIONAL CHART CITIZENS OF TEMECULA CITY COUNCIL CITY MANAGER Shawn D. Nelson CITY ATTORNEY COMMISSIONS Peter M. Thorson ADMINISTRATION / COMMUNITY PUBLIC SAFETY / COMMUNITY SERVICES DEVELOPMENT HUMAN RESOURCES DEVELOPMENT/ Aaron J. Adams Robert C. Johnson Grant Yates FINANCE Assistant City Manager Assistant City Manager Deputy City Manager CITY CLERK PLANNING POLICE PUBLIC WORKS Susan W. Jones Debbie Ubnoske Jerry Williams Bill Hughes TEMECULA COMMUNITY BUILDING & SAFETY FIRE REDEVELOPMENT SERVICES DEPARTMENT Mark S. Harold Glenn Patterson John Meyer Herman D. Parker HUMAN RESOURCES FINANCE INFORMATION SYSTEMS Genie Roberts Tim Thorson ECONOMIC DEVELOPMENT -xtl- CITY OF TEMECULA STAFF DIRECTORY EXECUTIVE MANAGEMENT CITY MANAGER SHAWN D. NELSON ASSISTANT CITY MANAGER AARON ADAMS ASSISTANT CITY MANAGER BOB JOHNSON DEPUTY CITY MANAGER GRANT YATES CITY ATTORNEY PETER M. THORSON CITY CLERKZDIRECTOR OF SUPPORT SERVICES SUSAN W. JONES DIRECTOR OF FINANCE GENIE ROBERTS DIRECTOR OF BUILDING AND SAFETY MARK HAROLD DIRECTOR OF PUBLIC WORKS/CITY ENGINEER WILLIAM G. HUGHES DIRECTOR OF COMMUNITY SERVICES HERMAN D. PARKER DIRECTOR OF PLANNING DEBBIE UBNOSKE DIRECTOR OF HOUSING/REDEVELOPMENT JOHN MEYER CHIEF OF POLICE JERRY WILLIAMS BATTALION FIRE CHIEF GLENN PATTERSON FINANCE DEPARTMENT DIRECTOR OF FINANCE GENIE ROBERTS ASSISTANT FINANCE DIRECTOR JASON SIMPSON FISCAL SERVICES MANAGER GUS PAPAGOLOS REVENUE MANAGER RUDY GRACIANO SENIOR ACCOUNTANT PASCALE BROWN ACCOUNTANT SHANNON BUCKLEY ADMINISTRATIVE ASSISTANT JUDY MCNABB ACCOUNTING SPECIALIST DADA YONKER ACCOUNTING SPECIALIST BETA WESTON ACCOUNTING SPECIALIST MONICA JORGENSON ACCOUNTING SPECIALIST LEAH THOMAS PURCHASING COORDINATOR MARY VOLLMUTH CASHIER/BUSINESS LICENSE SPECIALIST ZENAIDA SMITH ACCOUNTING ASSISTANT JILL DICKEY CASHIER/BUSINESS LICENSE SPECIALIST DEBORAH BROWN ACCOUNTING TECHNICIAN PAM ESPINOZA SENIOR DEBT ANALYST DAVID BILBY X111 - DIEHL, EVANS & COMPANY, LLP -CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS MICHAEL R. LUDIN, CPA A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG W. SPRARER, CPA NB7N P. PATE4 CPA ROBERT J. CALLANAN, CPA 2121 ALTON PARKWAY, SUITE 100 •PHE.IP H. HOLTKA , CPA IRVINE, CALIFORNIA 9260614956 °TBOMAS M PE]"WSM, CPA •EARVEY J. SCHROEDER, CPA (949) 399-0600 • FAX (949) 399-0610 xENN^--R. AWS, CPA www.dieWev .com •A eROtrssoN,D.coaeoRAnoN October 12, 2007 INDEPENDENT AUDITORS' REPORT City Council Members City of Temecula Temecula, California We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Temecula, California, as of and for the year ended June 30, 2007, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City of Temecula's management. Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditine Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Temecula, California, as of June 30, 2007, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. -1- OTHER OFFICES AT: 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598 (760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890 In accordance with Government Auditing Standards, we have also issued our report dated October l2, 2007 on our consideration of the City of Temecula's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit.performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The management's discussion and analysis and the other required supplementary information identified in the accompanying table of contents are not a required part of the basic financial statements but are supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures to the management's discussion and analysis, which consisted principally of inquiries of management regarding the methods of measurement and presentation of this required supplementary information. However, we did not audit the management's discussion and analysis and express no opinion on it. The budgetary comparison schedules and related note have been subjected to the auditing procedures applied in the audit of the basic financial statement and; in our opinion are fairly stated in all material respects in relation to the basic financial statements taken as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Temecula's basic financial statements. The introductory section, other supplemental information and statistical section as listed in the table.of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplemental information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion is fairly stated in all material respects in relation to the basic financial statements taken as a whole. The introductory section and statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. D LR-Ak , E JCLVV~) OVr! (a~ , LL P -2- Management's Discussion and Analysis Fiscal Year Ended June 30, 2007 As management of the City of Temecula, we offer readers of the City of Temecula's financial statements this narrative overview and analysis of the financial activities of the City of Temecula for the fiscal year ended June 30, 2007. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the city's financial statements, which follow this discussion. Financial Highlights • The assets of the City of Temecula exceeded its liabilities, at June 30, 2007, by $696.5 million (net assets). Of this amount, $80.4 million (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $59.3 million, reflecting the continued growth of the local economy. Approximately 99% of this overall increase is attributable to Capital grants and contribution revenues received to fund capital and infrastructure improvements in the City of Temecula and donation of assets to the City's infrastructure from improvements constructed by property owners. • As of June 30, 2007, the City of Temecula's governmental funds reported combined ending fund balances of $181.6 million, an increase of $23.1 million. Approximately 80% of this total amount, $145.9 million is available for spending at the government's discretion (unreserved fund balance). • At the end of the current fiscal year, unreserved fund balance for the general fund was $40.9 million, or 74.6% of total general fund expenditures excluding transfers. • The City of Temecula's total long-term liabilities increased by $19.9 million during the current fiscal year. The increase is the result of the issuance of 2006 Tax allocation bonds totaling for $21.2 million with offsetting payments of principal and changes in other long-term liabilities of $1.3 million. Overview of the Financial Statements The discussion and analysis are intended to serve as an introduction to the City of Temecula's basic financial statements. The City of Temecula's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 Government-Wide Financial statements The government-wide financial statements are designed to provide readers with a broad overview of the City of Temecula's finances in a manner similar to a private-sector business. The statement of net assets presents information on all the City of Temecula's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Temecula is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying events giving rise to the change occurs, regardless of the timing ofrelated cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statement presents information about the functions of the City of Temecula that is principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City of Temecula include general government, public safety, public works, community services, and community development. The government-wide financial statements can be found on pages 13 and 15 of this report. Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Temecula, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. All of the funds of the City of Temecula can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near- term inflows and outflows of spendable resources, as well as on balances on spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may be better understanding the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Temecula maintains various individual government funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General fund, Community Services District Special Revenue fund, Redevelopment Agency Special Revenue fund, Capital Outlay Capital a See independent auditors' report. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 Projects fund, Redevelopment Agency Capital Projects fund, and the Roripaugh CFD#03-02 Capital Projects fund, all of which are considered to be major funds. Data from other governmental funds are combined into a single, aggregate presentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report. The City of Temecula adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 16-19 and 20-22 of this report. Proprietaryfunds. The City of Temecula maintains various internal service funds. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Temecula's various functions. The City of Temecula uses internal service funds to account for its self-insurance activities, vehicles, information systems, support services and facilities. Because these services benefit governmental functions, they have been included within governmental activities in the government-wide financial statements. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 23 through 25 of this report. Fiduciary funds. Fiduciary Funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not available to support the City of Temecula's own programs. The basic fiduciary fund financial statements can be found on page 26 of this report. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on pages 27-66 of this report. Other Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information consisting of budgetary comparison schedules for the general fund and major special revenue funds. Required supplementary information can be found on page 67 through 73 of this report. The combining statements referred to earlier in connection with other governmental funds, internal service funds and schedules of revenues, expenditures, and changes in fund balance-budget and actual are presented immediately following the required supplementary information. Government-Wide Financial Analysis As noted earlier, the net assets for the City of Temecula increased by $59.3 million at June 30, 2007. The government-wide financial statements provide long-term and short-term information about the City's overall financial condition. This analysis addresses the City's financial statements as a whole. 5 See independent auditors' report. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 The largest portion of the City's net assets (75.6%) reflects the investment in capital assets (e.g., and, buildings, machinery and equipment), less any related debt used to acquire those assets that is still outstanding. The City of Temecula uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Temecula's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Temecula Summary of Net Assets As of June 30, 2007 and June 30, 2006 Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total Net Assets Government Government Activities Activities 2007 2006 (as restated) $ 216,218,399 $ 192,969,756 565,548,985 509,543,108 781,767,384 702,512,864 56,544,779 35,215,101 28,704,566 27,581,884 85,249,345 62,796,985 526,541,448 479,842,533 89,542,605 90,146,086 80,433,986 67,273,331 $ 696,518,039 $ 637,261,950 An additional portion of the City of Temecula's net assets (12.8%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $80,433,986 in unrestricted net assets may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Temecula is able to report positive balances in all three categories of net assets for the governmental activities. Governmental Activities Governmental activities increased the City of Temecula's net assets by $59.3 million, thereby accounting for 100% percent of the total growth in the net assets of the City of Temecula. Key elements of this increase are as follows: See independent auditors' report. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 City of Temecula Summary of Changes in Net Assets For the Years ended June 30, 2007 and June 30, 2006 Revenues: Program Revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Taxes: Sales taxes Property taxes Franchise taxes Transient occupancy taxes Other taxes Intergovernmental revenue - Motor vehicles in lieu Contributions, not restricted to specific purposes Unrestricted investment earnings Miscellaneous Total revenues Expenses: General government Public safety Public works Community services Community development Interest on long term debt Totalexpenses Increase in net assets Net assets, beginning of year, as restated Net assets, end of year Governmental Activities 2007 2006 (as restated) $ 34,287,081 4,923,439 24,995,756 30,069,312 28,149,257 3,033,014 2,284,168 1,251,653 34,490,046 4,829,167 64,851,453 30,649,032 26,854,910 2,558,691 2,085,104 1,507,673 1,521,730 35,769,595 4,197,019 833,847 $ 171,315,871 $ 15,502,875 22,196,822 20,666,677 18,992,957 32,389,210 2,311,241 $ 112,059,782 $ 59,256,089 637,261,950 $ 696,518,039 554,982 31,415,884 2,040,463 689,410 $ 202,526,815 $ 16,652,124 19,933,791 16,702,789 16,098,127 30,628,142 1,813,290 $ 101,828,263 $ 100,698,552 536,563,398 $ 637,261,950 • Capital grants and contributions decreased by 62% during the year due to one-time contributions from property owners in the prior year to fund infrastructure improvements in the Roripaugh Ranch residential development. • Sales Taxes decreased by 1.9% percent during the year. Most of this decrease is the result of a combination of sales tax allocation corrections and a decline in the automobile and transportation components of the local economy. • Property Taxes increased by 4.8% due to new commercial and new industrial development, but is lower growth than in previous years due to a cooling in the residential housing market. • Franchise fees increased by 18% due to area growth realized for electricity as compared to the prior year. See independent auditors' report. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 • Transient occupancy tax increased by 10% due to a new hotel in Spring 2007 and occupancy rates are higher citywide. • Motor Vehicle In Lieu increased 274% due to the receipt of AB 1602 eligible payments relating to the annexation of Redhawk Community. • Contributions not restricted for specific purposes increased by 13.9% during the year due to donated assets from property owners consisting primarily of park improvements, pavement, curb and gutters, sidewalks, traffic signals and signs, medians, and storm drain improvements throughout the City. • Unrestricted investment earnings increased by 105.7% due to an unanticipated delay in construction on about $50 million for infrastructure improvements in the Roripaugh Ranch development. For the most part, increases in expenditures closely parallel growth in the demand for services. Community Development expenditures accounted for 28.9% of total expenditures, Public Works expenditures were 18.4% of total expenditures, while Public Safety expenditures were 19.8% of total expenditures. • General government decreased 7% due to a decrease in CFD88-12 reimbursements required as a result of paying off prior year unfunded reimbursements. • Public Works increased by 23% due to an increase of program expenditures for the citywide slurry seal program funded partially with one-time Prop 42 funds realized in fiscal year 2006-07 with the remainder covered by the General Fund as increased services. • Community Services increased by 18% due to the opening of the new Temecula Library on Pauba Road in December 2006. • Public Safety increased by 11% due to an increase in contracted rates and service levels with the Riverside County Sheriffs and Fire Departments. • Interest expense increased by 27% due primarily as a result of the first debt service payment under the 2006 tax allocation bonds. Financial Analysis of the Government's Funds As noted earlier, the City of Temecula uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the City of Temecula's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Temecula's financing requirements. In particular, unreserved fund balance may serves as a useful measure of government's net resources available for spending at the end of the fiscal year. Proprietary funds. The City of Temecula's proprietary funds are the internal service funds, which are used to account for activities and services performed for other departments within the City on a cost reimbursement basis. See independent auditors' report CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 The major factors in fund balance changes are as follows: • The General Fund recognized a $5.9 million increase due to revenues greater than expenditures of $10.1 million which was offset by net transfers out of $4.2 million to the Capital Outlay fund to fund public improvement projects. Taxes, licenses and permits, intergovernmental and investment income represented $3.31 million with the remaining balance coming from savings in general government, public safety, public works, and community development categories. • The Community Services District Fund recognized a $172 thousand increase due to revenues greater than expenditures of $674 thousand less a transfer out of $502 thousand to cover debt service payments. • The Redevelopment Agency Special Revenue Fund recognized a $2.6 million increase due to revenues greater than expenditures due to tax increment growth and one-time reimbursements from other agencies for capital outlay projects. • The Capital Outlay Fund recognized a $4.5 million increase. This is due to the City completing public infrastructure improvements citywide for transportation issues and public facilities while receiving offsetting grants, reimbursements and transfers from other funds. • The Redevelopment Agency Capital Projects Fund increased by $22.6 million. This is due primarily to the issuance of $20.3 million in tax allocation bonds in December 2006 to fund infrastructure improvements in Old Town Temecula with the remainder as a result of transfers in from the Redevelopment Agency Debt Service Fund of net tax increment available for investing in capital projects. • The Roripaugh Ranch CFD #03-2 Fund increased by $1.9 million. This is due to interest earnings on funds held in trust originally deposited as contributions from developers to fund infrastructure improvements in this CFD area. See note 15 of the financial statements on pages 63 through 65 for further information regarding potential contingencies and legal matters regarding these contributions. • Other Governmental Funds, which are nonmajor funds, recognized a combined decrease of $14.5 million due to expenditures and transfers out greater than revenues and transfers in. These funds are further detailed beginning on page 69 of this report. General Fund Budget Highlights The difference between the original budget and the final amended budget reflects a $6,230,336 increase in appropriations, including operating transfers out, and can be briefly summarized as follows: • $1,106,656 in increases in Community Development is primarily due to increased consultant costs for reviewing the Environmental Impact Report for the Santa Margarita Area and increased consulting costs related to outsourcing of bridge project management and inspection costs related to three bridge projects. • $1,494,767 in decreases in General Government is due to less than required reimbursements to CFD 88-12 property owners for anticipated prior year unpaid assessments of $1,693,500 offset by minor increases for various programs. The CFD 88-12 has been generating significant sales tax revenue enough and at a faster trend that planned. As a result, CFD 88-12 has been able to fully repay all prior year assessments outstanding earlier thereby reducing the annual reimbursement back to the property owners. Based upon the reimbursement formula, CFD 88-12 is only responsible for paying the current year debt service, which is approximately $1.7 million lower than historically reimbursed in recent years. See independent auditors' report. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 • $1,020,894 in increases allocated to the public works department is due primarily to additional funds received for Prop 42 which were programmed to supplement the Citywide Slurry Seal Program. • $5,829,000 increases in transfers out to the CIP fund-to-fund capital improvements projects related to the new Civic Center Master Plan Phase 1. Of this increase, $883,491 was to be funded out of miscellaneous increases in various revenues. The remaining $5,346,845 was to be budgeted from available fund balance. During the year, however, revenues exceeded budgetary estimates and expenditures were less than budgetary estimates, thus eliminating the need to draw upon existing fund balance. Capital Asset and Debt Administration Capital assets The City of Temecula's investment in capital assets for its governmental activities as of June 30, 2007, amounts to $565.5 million (net of accumulated depreciation). This investment in capital assets includes land, buildings and system, improvements, machinery and equipment, park facilities, roads, highways, and bridges. The total increase in the City of Temecula's investment in capital assets for the current fiscal year was 11 percent. Major capital asset events during the current fiscal year include the following: • Construction was completed on: the new Temecula Library and associated improvements on Pauba Road; the Highway 79 South median construction, landscaping, and irrigation improvements; and the Bridge fencing on the south side of Overland Drive and Rancho California bridges over Interstate. • Construction was completed on the 43-acre Patricia H. Birdsall Sports Park Complex at Pechanga Parkway and Deer Hollow. • A variety of street constructions projects in new residential developments and widening and expansion projects for existing streets and bridges were completed as new ones also began. The City provided oversight for Community Facilities District projects including, Wolf Creek, Crowne Hill, Harveston, and Roripaugh Ranch. • The City made significant progress on the French Valley Parkway and Interstate 15 Interchange Project, the Pechanga Parkway Phase II improvements, Overland Drive Bridge at Murrieta Creek, and the Field Operations Maintenance Facility, and the State Route 79 South/1-15 Interchange. • In addition, implementation commenced on the Old Town Civic Center Master Plan, parking structure, office and retail frontage, and the Civic Plaza. to See independent auditors' report. CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 City of Temecula Summary of Changes in Capital Assets For the Year Ending June 30, 2007 Description Governmental Activities: Capital assets, not being depreciated: Land Right of way Construction in Progress Total capital assets, not being depreciated Capital assets, being depreciated: Building improvements other than buildings Vehicles, machinery and equipment Furniture and fixtures Infrastructure Total capital aseets, being depreciated Less accumulated depreciation for: Buildings Improvements other than buildings Vehicles, machinery and equipment Furniture and fixtures Infrastructure Total accumulated depreciation Total capital aseets, being depreciated Total Capital assets, net Balance at June 30, 2006, as Balance at restated Increase Decrease June 30, 2007 $ 59,918,663 $ 2,855,766 $ - $ 62,774,429 68,523,656 - - 68,523,656 54,385,846 14,890,779 (29,467,251) 39,809,374 182,828,165 17,746,545 (29,467,251) 171,107,459 37,981,281 15,467,712 - 53,448,993 20,808,441 18,747,094 - 39,555,535 8,033,621 1,183,727 (602,352) 8,614,996 1,258,583 951,573 (44,877) 2,165,279 371,231,661 45,931,007 (281,880) 416,880,788 439,313,587 82,281,113 (929,109) 520,665,591 (5,468,699) (1,196,948) - (6,665,647) (2,512,753) (1,057,815) - (3,570,568) (5,536,882) (870,941) 527,031 (5,880,792) (927,185) (301,182) 16,958 (1,211,409) (98,153,125) (11,024,404) 281,880 (108,895,649) (112,598,644) (14,451,290) 825,869 (126,224,065) 326,714,943 67,829,823 (103,240) 394,441,526 $ 509,543,108 $ 85,576,368 $ (29,570,491) $ 565,548,985 Additional detail on capital assets is available in Note 3 to the financial statements on page 42. See independent auditors' report. II CITY OF TEMECULA Management's Discussion and Analysis, continued Year Ended June 30, 2007 Long-term debt At the end of the current fiscal year, the City of Temecula had a total bonded debt outstanding of $54.4 which is comprised of note payable, tax allocation bonds, and certificate of participation backed by the full faith and credit of the tax increment and special assessments allocated. City of Temecula Summary of changes in Long-Term Debt For the Year Ended June 30, 2007 Balance Balance Due Within June 30, 2006 Additions Deletions June 30, 2007 One Year Bonds and Notes Payable: Tax allocation bond $ 27,445,000 $ 21,145,000 $ 415,000 $ 48,175,000 $ 755,000 Certificates of participation 5,490,000 250,000 5,240,000 255,000 Note Payable 1,506,990 494,211 1,012,779 517,447 Total Bonds and Notes Payable $ 34,441,990 $ 21,145,000. $ 1,159,211 $ 54,427,779 $ 1,527,447 Additional information on long-term debt is available in Note 5 to the financial statements on pages 44 to 49. Economic Factors and Next Year's Budgets and Rates The key assumptions in the General Fund revenue budget for fiscal year 2007-08 were: 1. General Fund revenues are projected to reach $63,842,120, an increase of $2,454,671 from FY 2006-07. 2. Sales and Use Tax revenue is projected to increase by 3.3% an increase from FY 2006-07 estimates. 3. The assessed valuation for property tax revenues is estimated to increase by 6.14%, primarily due to new commercial and industrial development. 4. Motor vehicle fees and Property Tax in Lieu of VLF are estimated to increase by 4.3% based on population increase and growth in assessed valuations. All of these factors were considered in preparing the City of Temecula's annual operating budget for fiscal year 2007-08. Requests for Information This financial report is designed to provide a general overview of the City of Temecula's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to City of Temecula Finance Department, P.O. Box 9033, Temecula, California 92589-9033. 12 See independent auditors' report. CITY OF TEMECULA STATEMENT OF NET ASSETS June 30, 2007 Governmental Activities ASSETS: Cash and investments (Note 2) S 107,712,394 Receivables: Taxes 1,705,544 Accounts 85,533 Interest - 1,952,722 Intergovernmental 8,628,541 Notes 7,091,442 Other 659,693 Inventory 3,747 Prepaid items 295,721 Deposits 110,881 Deferred charges 418,859 Land held for resale 6,714,661 Restricted assets: - Cash and investments with fiscal agents (Note 2) 80,838,661 Capital assets (net of accumulated depreciation) (Note 3): Land 62,774,429 Right of way 68,523,656 Buildings 46,783,346 Improvements other than buildings 35,984,967 Vehicles, machinery and equipment 2,734,204 Furniture and fixtures 953,870 Infrastructure 307,985,139 Construction in progress 39,809,374 TOTAL ASSETS 781,767,384 LIABILITIES Accounts payable 7,070,348 Accrued liabilities 9,232,115 Interest payable 957,288 Deposits 1,559,875 Unearned revenue 9,884,940 Noncurrent liabilities (Note 5): Due within one year 1,731,560 Due in more than one year 54,813,219 TOTAL LIABILITIES 85,249,345 NET ASSETS: Invested in capital assets, net of related debt 526,541,448 Restricted for: Public safety 404,688 Public works 66,979,413 Community services 2,220,090 Community development 19,444,019 Debt service 494,395 Unrestricted 80,433,986 TOTAL NET ASSETS 696,518,039 See independent auditors'report and notes to basic financial statements. -13- (THIS PAGE INTENTIONALLY LEFT BLAND -14- CITY OF TEMECULA STATEMENT OF ACTIVITIES For the year ended June 30, 2007 Program Revenues Charges Operating Capital Net for Grants and Grants and Governmental Functions/programs Expenses Services Contributions Contributions Activities Governmental activities: General government $ 15,502,875 $ 2,575,738 $ - $ - $ (12,927,137) Public safety 22,196,822 2,127,918 391,345 294,522 (19,383,037) Public works 20,666,677 1,784,676 4,530,069 124,481 (14,227,451) Community services 18,992,957 18,462,235 - - (530,722) Community development 32,389,210 9,336,514 2,025 24,576,753 1,526,082 Interest on long-term debt 2,311,241 - (2,311,241) Total $ 112,059,782 $ 34,287,081 $ 4,923,439 $ 24,995,756 (47,853,506) General revenues: Unrestricted taxes: Sales taxes Property taxes Franchise taxes Transient occupancy taxes Other taxes Intergovernmental revenue - Motor vehicles in lieu Contributions not restricted to specific purpose Unrestricted investment earnings Miscellaneous Total general revenues Change in net assets Net assets at Beginning of Year, As Restated (Note 16) Net assets at End of Year See independent auditors' report and notes to basic financial statements. 30,069,312 28,149,257 3,033,014 2,284,168 1,251,653 1,521,730 35,769,595 4,197,019 833,847 107,109,595 59,256,089 637,261,950 $ 696,518,039 -15- CITY OF TEMECULA BALANCESHEET GOVERNMENTAL FUNDS June 30, 2007 General ASSETS Cash and investments Cash and investments with fiscal agents Interest receivable Taxes receivable Accounts receivable Notes receivable Intergovernmental receivable Other receivables Due from other funds (Note 4) Advances to other funds (Note 4) Inventory Deposits Land held for resale TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Accrued liabilities Deposits Deferred revenue Due to other funds (Note 4) Advances from other funds (Note 4) TOTAL LIABILITIES FUND BALANCES (NOTE 7): Reserved: Encumbrances Low/moderate income housing Land held for resale Advances to other funds Long-term assets Inventory Deposits and prepaid items Debt service Unreserved, Reported in: General Special revenue Capital projects TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES Special Revenue Funds Community Redevelopment Services District Agency $ 48,688,608 $ 3,481,494 $ 9,283,347 725,737 37,737 108,441 1,219,201 352,963 65,902 - 76,409 - - 6,042 6,813,283 4,585,676 - - 177,727 - 481,966 26,883 99,520 - 1,984,552 - - 3,747 - - 110,881 - - - - 6,616,177- $ 57,523,012 $ 4,054,165 $ 23,369,116 $ 4,882,356 $ 523,579 $ 32,511 5,486,340 1,043,894 380,373 1,221,029 255,170 - 2,000,953 11,432 6,464,987 13,590,678 1,834,075 6,877,871 1,813,248 190,552 769,385 - - 8,757,387 - - 6,616,177 1,070,177 - - - - 348,296 3,747 - - 110,881 - 40,934,281 - - 2,029,538 - 43,932,334 2,220,090 16,491,245 $ 57,523,012 $ 4,054,165 $ 23,369,116 See independent auditors' report and notes. to basic financial statements. -16- Capital Projects Funds Other Total Capital Redevelopment Roripaugh Governmental Govemmental Outlay Agency CFD #03-02 Funds Funds $ 24,432,905 $ 2,453,956 $ - $ 15,882,825 $ 104,223,135 - 20,413,473 42,257,722 18,167,466 80,838,661 164,881 282,808 156,422 444,790 1,920,816 - - - 67,478 1,705,544 - - - - 76,409 - 272,117 - - 7,091,442 1,384,073 - - 761,302 6,731,051 - - - - 659,693 - - - - 126,403 - - - - 1,984,552 - - - - 3,747 - - - 110,881 - 98,484 - 6,714,661 $ 25,981,859 $ 23,520,838 $ 42,414,144 $ 35,323,861 $ 212,186,995 $ '1,501,868 $ 10,509 $ - $ - $ 6,950,823 2,261,472 4,382 - - 9,176,461 1,017 15,000 - 57,659 1,549,875 2,196,941 125,000 - - 10,799,313 99,520 - - 26,883 126,403 200,000 - - 1,784,552 1,984,552 6,260,818 154,891 - 1,869,094 30,587,427 14,999,781 83,621 - 17,856,587 - - - - 8,757,387 98,484 - - 6,714,661 - - - 1,070,177 147,117 - - 495,413 - - - 3,747 - - 110,881 - 731,164 731,164 - 40,934,281 - - - 14,313,675 16,343,213 4,721,260 23,036,725 42,414,144 18,409,928 88,582,057 19,721,041 23;365,947 42,414,144 33,454,767 181,599,568 $ 25,981,859 $ 23,520,838 $ 42,414,144 $ 35,323,861 $ 212,186,995 -17- (THIS PAGE INTENTIONALLY LEFT BLAND -18- CITY OF TEMECULA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET ASSETS June 30, 2007 Fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the governmental funds balance sheet. Capital assets net of $122,463,363 accumulated depreciation are: Receivables which are not considered to be available to finance current expenditures are reported as deferred revenue in the governmental funds. For the Statement of Net Assets, these amounts are earned and accrued: Interest Taxes $ 914,373 1,897,490 $ 181,599,568 563,518,645 2,811,863 Internal Service funds are used by management to charge the costs of various city activities to individual governmental funds. The assets and liabilities of the internal service funds are included in governmental activities in the Statement of Net Assets. Internal Service funds net assets are: Long-term liabilities applicable to the City governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. Interest on long-term debt is not accrued in governmental funds, but rather is recognized as an expenditures when due. All liabilities, both current and long-term, are reported in the Statement of Net Assets. Balances as at June 30, 2007 are: Deferred charges for issuance costs Bond discount Long-term debt Accrued interest Net assets of governmental activities See independent auditors' report and notes to basic financial statements. 418,859 (218,664) (55,557,862) (957,288) 4,902,918 (56,314,955) $ 696,518,039 -19- CITY OF TEMECULA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the year ended June 30, 2007 REVENUES: Taxes Licenses and permits Intergovernmental Charges for services Fines and forfeitures Investment income Other TOTAL REVENUES EXPENDITURES: Current General government Public safety Public works Community development Community services Capital outlay Debt service: Principal retirement Interest and fiscal charges Cost of issuance Tax increment pass-throughs TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Capital debt issued Bond discount TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES 5,942,540 171,867 2,570,446 FUND BALANCES AT BEGINNING OF YEAR, AS RESTATED 37,989,794 2,048,223 13,920,799 FUND BALANCES AT END OF YEAR $ 43,932,334 $ 2,220,090 $ 16,491,245 Special Revenue Funds Community Redevelopment General Services District Agency $ 45,694,463 $ -2,985,206 $ 3,126,735 5,884,122 - - 1,751,048 21,841 6,671,346 15,320,780 - 1,307,174 - - 3,499,358 131,775 533,237 129,982 2,632 2,950,963 64,937,493 18,462,234 6,610,935 15,143,673 - - 21,950,928 - - 8,602,982 - - 9,139,563 - 552,184 - 17,788,867 - - - 3,488,305 54,837,146 17,788,867 4,040,489 10,100,347 673,367 2,570,446 2,811,193 - (6,969,000) (501,500) (4,157,807) (501,500) See independent auditors'report and notes to basic financial statements. -20- Capital Projects Funds Other Total Capital Redevelopment Roripaugh Governmental Governmental Outlay Agency CFD #03-02 Funds Funds $ - $ - $ - $ 12,506,938 $ 64,313,342 - 5,884,122 9,275,267 - - 6,475,436 17,523,592 - 6,134,458 28,126,584 - - - - 1,307,174 361,320 627,351 1,926,151 1,996,905 9,076,097 6,008,202 24,403 - 6,404 9,122,586 15,644,789 651,754 1,926,151 27,120,141 135,353,497 63,337 15,207,010 - 21,950,928 - - - - 8,602,982 649,349 119,791 10,460,887 - - - 17,788,867 33,127,629 116,524 - 10,032,587 46,765,045 - - - 1,159,211 1,159,211 - 1,969,207 1,969,207 - - - 421,009 421,009 - - - 8,778,831 8,778,831 33,127,629 765,873 - 22,543,973 133,103,977 (17,482,840) (114,119) 1,926,151 4,576,168 2,249,520 21,979,265 2,600,000 - 3,457,848 30,848,306 - (147,992) - (23,229,814) (30,848,306) - 20,251,477 - 893,523 21,145,000 - - - (222,191) (222,191) 21,979,265 22,703,485 - (19,100,634) 20,922,809 4,496,425 22,589,366 1,926,151 (14,524,466) 23,172,329 15,224,616 776,581 40,487,993 47,979,233 158,427,239 $ 19,721,041 $ 23,365,947 $ 42,414,144 $ 33,454,767 $ 181,599,568 -21- CITY OF TEMECULA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended June 30, 2007 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. This is the amount by which depreciation exceeded capital expense in the current period: Capital expenditures Disposition of capital assets Depreciation expense Donations of capital assets increase net assets in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. The issuance of long term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, and similar items when the debt is first issued, whereas these amounts are deferred and amortized in the Statement of Net Activities. These amounts are the net effect of these differences in the treatment of long-term debt and related items: Issuance of tax allocation bonds Bond issuance costs Discount on issuance of tax allocation of bonds Principal payments Net change in compensated absences Some revenues reported in the Statement of Activities are not considered to be available to finance current expenditures and therefore are not reported as revenues in governmental funds: Investment income $ 33,796,715 (97,691) (13,910,303) (21,145,000) 421,009 222,191 1,159,211 (21,404) $ 23,172,329 19,788,721 35,769,595 (19,363,993) 111,994 Some revenues reported previously in the Statement of Activities were reported as revenues in the governmental funds as they were received in the current fiscal year: Taxes (54,714) Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in the governmental funds: Accrued interest payable on long-term liabilities (324,843) Amortization of bond discounts (3,527) Amortization of issuance costs (2,150) (330,520) Internal service funds are used by management to charge the costs of certain activities, such as risk management and insurance programs, replacement of city vehicles, information systems services, central mailing and reprographic services and city maintenance facility operations. The net revenue (expense) of these internal service funds are reported as governmental activities. 162,677 Change in net assets of governmental activities $ 59,256,089 See independent auditors' report and notes to basic financial statements. -22- CITY OF TEMECULA STATEMENT OF NET ASSETS PROPRIETARY FUNDS June 30, 2007 CURRENT ASSETS: Cash and investments Interest receivable Accounts receivable Prepaid items TOTAL CURRENT ASSETS NONCURRENT ASSETS: Capital assets: Equipment Less accumulated depreciation TOTAL NONCURRENT ASSETS TOTAL ASSETS LIABILITIES: CURRENT LIABILITIES: Accounts payable Accrued liabilities Deposits Compensated absences payable Capital lease payable Claims payable TOTAL CURRENT LIABILITIES ASSETS LIABILITIES LONG-TERM LIABILITIES: Capital lease payable Claims payable TOTAL LONG-TERM LIABILITIES TOTAL LIABILITIES NET ASSETS: Invested in capital assets Unrestricted TOTAL NET ASSETS NET ASSETS See independent auditors' report and notes to basic fmancial statements. Government Activities Internal Service Funds $ 3,489,259 31,906 9,124 295,721 3,826,010 5,791,043 (3,760,703) 2,030,340 5,856,350 119,525 55,654 10,000 156,264 28,611 19,238 389,292 158,826 405,314 564,140 953,432 2,030,340 2,872,578 $ 4,902,918 -23- CITY OF TEMECULA STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS For the year ended June 30, 2007 OPERATING REVENUES: Charges for services - Other TOTAL OPERATING REVENUES OPERATING EXPENSES: Operations and maintenance General and administrative Depreciation TOTAL OPERATING EXPENSES OPERATING INCOME NONOPERATING REVENUES (EXPENSES): Interest income Interest expense Gain on disposal of capital assets TOTAL NONOPERATING REVENUES (EXPENSES) CHANGE IN NET ASSETS TOTAL NET ASSETS AT BEGINNING OF YEAR TOTAL NET ASSETS AT END OF YEAR See independent auditors' report and notes to basic financial statements, Governmental Activities- Internal Service Funds $ 4,140,420 991 4,141,411 1,720,083 1,841,649 540,987 4,102,719 38,692 116,096 (11,516) 19,405 123,985 162,677 4,740,241 $ 4,902,918 -24- CITY OF TEMECULA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the year ended June 30, 2007 Governmental Activities- Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers $ 4,141,411 Payment to suppliers (1,729,923) Payment to employees (1,841,650) NET CASH PROVIDED BY OPERATING ACTIVITIES 569,838 . CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (851,557) Proceeds from sale of capital assets 24,952 _ Principal payments on capital lease obligation - (36,108) Interest payments on capital lease obligation (11,516) NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES (874,229) CASH FLOWS FROM INVESTING ACTIVITIES: Investment interest received - 113,760 NET DECREASE IN CASH AND CASH EQUIVALENTS (190,631) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,679,890 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 3,489,259 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income $ 38,692 Depreciation 540,987 Change in assets and liabilities: (Increase) decrease in accounts and notes receivable (5,986) (Increase) decrease in prepaid items (53,615) Increase (decrease) in accounts payable 30,333 Increase (decrease)- in compensated absences _ 48,719 Increase (decrease) in accrued liabilities - 5,010 Increase (decrease) in claims payable (34,302) NET CASH PROVIDED BY OPERATING ACTIVITIES $ 569,838 NONCASHITEMS: Noncash items included acquisition of capital assets in the amount of $142,539 financed through a lease purchase contract. See independent auditors' report and notes to basic financial statements. 25- CITY OF TEMECULA STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES AGENCY FUND June 30, 2007 ASSETS: Cash and investments (Note 2) Cash and investments with fiscal agent (Note 2) Taxes receivable Interest receivable TOTAL ASSETS LIABILITIES: Accrued liabilities Due to bondholders TOTAL LIABILITIES See independent auditors' report and notes to basic financial statements. $ 2,398,125 14,780,532 563,459 56,027 $ 17,798,143 $ 6,080 17,792,063 $ 17,798,143 -26- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES: a. Reporting Entity: The reporting entity "City of Temecula" includes the accounts of the City, the Temecula Redevelopment Agency, the Temecula Community Services District, the Temecula Public Facilities Financing Corporation, the Industrial Development Authority of the City of Temecula, and the Temecula Public Financing Authority. The City of Temecula was incorporated on December 1, 1989 as a general law city and operates under a council/manager form of government. Temecula Redevelopment Agency (TRA) The TRA was activated in July 1991. The purpose of the TRA is to eliminate deteriorating conditions and conserve, rehabilitate and revitalize project areas in accordance with Agency's plan and annual work programs. The TRA is designed to encourage cooperation and participation of residents, business persons, community organizations and public agencies in the revitalization of the area. The City of Temecula City Council serves as the Agency's Board of Directors. Temecula Community Services District (TCSD) The TCSD was organized on December 1, 1989. Operating under a board of directors which is the City Council, the TCSD currently provides street lighting, parks, recreation, slope maintenance and refuse hauling services. Industrial Development Authority of the City of Temecula (Authority The Authority was activated on March 22, 1994. The purpose of the Authority is to provide alternative methods of financing certain facilities in order to prevent the loss of existing jobs, increase employment opportunities, and otherwise contribute to the economic development of the City. The City of Temecula City Council also serves as the Authority's Board of Directors. See independent auditors' report. -27- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): a. Reporting Entity (Continued): Temecula Public Financing Authority (TPFA) The TPFA was established pursuant to a Joint Exercise of Powers Agreement, dated April 24, 2001, by and between the City and the Redevelopment Agency. The City and the Redevelopment Agency formed the TPFA for the primary purpose of assisting in the financing and refinancing of a community facilities district and the issuance of bonds necessary to finance the public improvements. The TPFA may establish other community facilities districts in the future in connection with the financing of public improvements in the City and could also be used in connection with other City and Agency financings. The criteria used in determining the scope of the reporting entity are based on the provisions of GASB Statement No. 14. The City of Temecula is the primary governmental unit. Component units are those entities which are financially accountable to the primary governmental unit either because the City appoints a voting majority of the component unit Board, or because the component unit will provide financial benefit or impose a financial burden on the City. The City has accounted for TRA, TCSD, Corporation, Authority, and TPFA as "blended" component units. Despite being legally separate, these units are so intertwined with the City that they are in substance, part of the Citys operations. Accordingly, the balances and transactions of the blended component units are included in the Special Revenue, Debt Service and Capital Projects funds. The following specific criteria were used in determining that TRA, TCSD, Corporation, Authority, and TPFA were blended component units: 1) The members of the City Council also act as the governing body of TRA. The City and TRA are financially interdependent. The City makes loans to TRA for use on redevelopment projects. Property tax revenues of TRA are used to repay the loans from the City. TRA is managed by employees of the City. A portion of the City's salary and overhead expenses is billed to TRA each year. 2) The members of the City Council serve as members of the governing body of TCSD, Authority, and TPFA. City employees manage these entities and provide all support functions for them including financial reporting and investment decisions. See independent auditors' report. -28- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): b. Government-Wide and Fund Financial Statements: The government-wide financial statements (i.e., the statement of net assets and the statement of changes in net assets) report information about the reporting government as a whole; except for its fiduciary activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. Likewise, the primary government (including its blended component units) is reported separately from discretely presented component units for which the primary government is financially accountable. The City has no business-type activities or discretely presented component units. For the most part, the effect of interfund activity has been removed from these statements. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for. with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Separate financial statements for the government's governmental, proprietary, and fiduciary funds are presented after the government-wide financial statements.. These statements display information about major funds individually and other governmental funds in the aggregate for governmental funds. Fiduciary statements, even though excluded from the government-wide financial statements includes financial information that primarily represent assets held by the City in a custodial capacity for other individuals or organizations. See independent auditors' report. -29- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation: The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements. Under the economic resources measurement focus, all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Operating statements present increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange include grants, entitlements, and donations. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all the eligibility requirements have been satisfied. Operating expenses for proprietary funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the government's policy to use restricted resources first, then unrestricted resources as they are needed. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under the current financial resources measurement focus, only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources". Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they.are said to present a summary of sources and uses of "available spendable resources" during a period. Noncurrent portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. However, special reporting treatments are used to indicate that they should not be considered "available spendable resources" since they do not represent net current assets. Recognition of governmental fund.type revenue represented by noncurrent receivables is deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. See independent auditors' report. -30- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): c. Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued): Under the modified accrual basis of accounting, revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government generally considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, except for principal and interest on general long-term liabilities, claims and judgments, and compensated absences which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities are reported as other financing sources. Property taxes, sales tax, motor vehicle license fees, transient occupancy taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current period. All other revenue items are considered to be measurable and available only when cash is received by the government. For the government-wide statements, the City follows FASB Statements and Interpretations issued on or before November 30, 1989, Accounting Principles Board Opinions and Accounting Research Bulletins, unless these pronouncements conflict with GASB pronouncements. d. Fund Classifications: The funds designated as major funds are determined by a mathematical calculation consistent with GASB Statement No. 34. The City reports the following major governmental funds: The General Fund is the primary operating fund of the City and is used to account for all revenues and expenditures that are not required to be accounted for in another fund. The Community Services District Special Revenue Fund is used to account for assessment proceeds restricted for parks, recreation, street lighting, slope maintenance, recycling and refuse collection, and specific street maintenance. The Redevelopment Agency Special Revenue Fund is used for account for the portion of redevelopment tax increment monies which California Redevelopment Law requires to be set aside for the development of low and moderate income housing. See independent auditors' report. -31- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): d. Fund Classifications (Continued): Major Governmental Funds (Continued): The Capital Outlay Capital Projects Fund is used to account for financial resources used for the acquisition, construction and improvement of various capital facilities. The Redevelopment Agency Capital Projects Fund is used to account for the acquisition, relocation, demolition and sale of land for those portions of the City designated in need of redevelopment. The Roripaush Community Facilities District #03-02 Capital Projects Fund is used to account for bond proceeds which will be used for capital improvements in Roripaugh Community Facilities District No. 03-02 (Roripaugh Ranch). The City's fund structure also includes the following fund types: GOVERNMENTAL FUNDS The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. - The Debt Service Funds are used to account for the accumulation of resources, and the payment of general long-term debt principal, interest, and related costs for all general long-term debt obligations of the City and related entities. The Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major property, equipment or facilities (other than those financed by the Proprietary Funds). PROPRIETARY FUNDS The Internal. Service Funds are used to account for activities and services performed for other departments within the City on a cost reimbursement basis. Specific activities accounted for included risk management and insurance programs, replacement of city vehicles, information systems services, central mailing and reprographic services and City maintenance facilities operations. See independent auditors' report. -32- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): d. Fund Classifications (Continued): The City's Fund Structure (Continued): FIDUCIARY FUNDS The Agency Fund is used to account for assets temporarily held by the City in a fiduciary capacity for various Community Facilities Districts. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. e. Cash and Investments: Investments are stated at fair value (quoted market price or best available estimate thereof, see Note 2). A substantial portion of the City's investments are in short-term, highly liquid instruments, with original maturities of three months or less. For purposes of the statement of cash flows, all cash and investments held by the internal service funds are considered to be short term and, accordingly, are classified as cash and cash equivalents. f. Land Held for Resale: Land held for resale represents land that was acquired in accordance with the objectives of the Agency. Land held for resale is generally valued at cost. In instances where an anticipated sales price is known to be lower than cost, a write down is recorded. A portion of fund balance is reserved for land held for resale to indicate that a portion of fund balance is not available for future expenditures. g. Capital Assets: Capital assets (including infrastructure) are recorded at cost where historical records are available and at an estimated original cost where no historical records exist. Contributed capital assets are valued at their estimated fair market value at the date of contribution. Generally, capital asset purchases in excess of $5,000 are capitalized if they have an expected useful life of 1 year or more. Infrastructure assets with a cost exceeding $100,000 are capitalized. See independent auditors' report. -33- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): g. Capital Assets (Continued): Capital assets include additions to public domain (infrastructure), certain improvements including pavement, curb and gutter, sidewalks, traffic control devices, streetlights, sewers, storm drains, bridges and right-of-way corridors within the City. The City has valued and recorded all infrastructure asset data in its entirety as of June 30, 2007. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method in the Government-wide Financial Statements and in the Fund Financial Statements of the Proprietary Funds. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the respective Statement of Net Assets. The lives used for depreciation purposes of each capital asset class are: Buildings 40 years Improvements other than buildings 40 years Vehicles, machinery and equipment 3 - 25 years Furniture and fixtures 4 - 25 years Infrastructure 25 - 75 years h. Compensated Absences: hi accordance with GASB Statement No. 16, an employee benefits payable liability is recorded for unused vacation and similar compensatory leave balances. The employees' entitlement to these balances are attributable to services already rendered and it is probable that virtually all of these balances will be liquidated by either paid time off or payments upon termination or retirement. Under GASB Statement No. 16, a liability is recorded for unused sick leave balances only to the extent that it is probable that the unused balances will result in termination payments. Other amounts of unused sick leave are excluded from the liability since their payment is contingent solely upon the occurrence of a future event (illness) that is outside the control of the City and the employee. A proprietary fund liability is accrued for all leave benefits relating to the proprietary funds. In the government-wide financial statement, amounts expected to be liquidated within one year are classified as current with the remaining amount included as long-term liabilities. See independent auditors' report. -34- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. REPORTING ENTITY AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): i. Claims and Judgments: When it is probable that a claim liability has been incurred at year-end, and the amount of the loss can be reasonably estimated, the City records the estimated loss, net of any insurance coverage under its self-insurance program. This liability, including an estimate of claims which have been incurred but not reported, has been accrued by the City's Internal Service Fund. Small dollar claims and judgments are recorded as expenditures when paid. j. Property Taxes: Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property taxes go into a pool, and are then allocated to the cities based on complex formulas. Accordingly, the City of Temecula accrues only those taxes which are received within 60 days after year end. Lien Date Levy Date Due Dates Collection Dates January 1 June 30 November 1 and February 1 December 10 and April 10 k. Restricted Assets: Cash and investments of $60,177,663 are contributions from property owners of the various Community Facilities Districts to be used for capital service improvements or debt payments, and $20,660,998 are bond proceeds to be used for redevelopment projects. 1. Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. See independent auditors' report. -35- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS: Cash and Investments Cash and investments at June 30, 2007 are classified in the accompanying financial statements as follows: Government- Fiduciary Wide Fund Statement of Statement of Net Assets Net Assets Total Unrestricted assets: Cash and investments $ 107,712,394 $ 2,398,125 $ 110,110,519 Restricted assets: Cash and investments with fiscal agents 80,838.661 14,780,532 95,619,193 Total Cash and Investments 188,551,055 $ 17.178.657 $ 205,729.712 Cash and investments at June 30, 2007 consisted of the following: Cash on hand Deposits with financial institutions Investments Total Cash and Investments See independent auditors' report. $ 2,710 3,838,606 201,888,396 205,729.712 -36- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Investments Authorized by the California Government Code and the City's Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the City's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. Maximum Maximum Percentage Authorized Investment Type Maturity of Portfolio* United States (U.S.) Treasury Obligations 5 years None U.S. Government Sponsored Enterprise Securities 5 years None Banker's Acceptances 180 days 40% Commercial Paper , 270 days 15% Negotiable Certificates of Deposit 5 years 30% Repurchase Agreements 30 days 50% Local Agency Investment Fund (LAIF) Maximum Investment in One Issuer None None 10% 10% None None N/A None $ 40,000,000 per entity * - Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. N/A - Not Applicable See independent auditors' report. -37- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City's investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Maximum Percentage Investment Authorized Investment Type Maturity Allowed in One Issuer United States (U.S.) Treasury Obligations None None None U.S. Government Sponsored Enterprise Securities None None None Banker's Acceptances 1 year None None Commercial Paper 180 days None None Investment Agreements (2) (2) (2) Local Agency Investment Fund (LAIF) Money Market Mutual Funds (1) None $ 40,000,000 (1) None None (1) Not Applicable (2) Acceptable to the Municipal Bond Insurer See independent auditors' report. -38- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type Local Agency Investment Fund U.S. Government Sponsored Enterprise Securities: FFCB FHLMC FHLB FNMA Held by Bond Trustee: Money Market Mutual Funds U. S. Treasury Notes Local Agency Investment Fund Certificates of Deposit Investment Agreements U.S. Government Sponsored Enterprise Securities: FHLB Remaining Maturity (in Months) 12 Months 25 - 60 More Than or Less Months 60 Months - Total $ 61,737,488 $ - $ - $.61,737,488 - 5,981,580 - 5,981,580 2,992,480 - - 2,992,480 30,339,976 2,984,690 995,940 34;320,606 - 990,940 - 990,940 51,322,855 - 51,322,855 97,597 97,597 38,304,377 - 38,304,377 - 873,984 873,984 - 5,066,489 5,066,489 200.000 200.000 $184.794.773 $ 11.031.194 $ 6.062.429 $201-888396 See independent auditors' report. -39- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating as required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating, as reported by Standards and Poor, as of year end for each investment type: Investment Type Local Agency Investment Fund U.S. Government Sponsored Enterprise Securities: FFCB FHLMC FHLB FNMA Held by Bond Trustee: Money Market Mutual Funds U.S. Treasury Notes Local Agency Investment Fund Certificates of Deposit Investment Agreements U.S. Government Sponsored Enterprise Securities: FHLB Total (1) Not Applicable Total Minimum Not as of Legal Required June 30, 2007 Rating AAA to be Rated Unrated $ 61,737,488 (1) $ - $ - $.61,737,488 5,981,580 AAA 5,981,580 - - 2,992,480 AAA 2,992,480 - 34,320,606 AAA 34,320,606 - 990,940 AAA 990,940 - 51,322,855 AAA 51,322,855 - 97,597 (1) - 97,597 - 38,304,377 (1) - - 38,304,377 873,984 (1) - - 873,984 - 5,066,489 (2) - - 5,066,489 200,000 AAA 200,000 $201-888.396 (2) Acceptable to the Municipal Bond Insurer See independent auditors' report. $ .95.808.461 $ 971.581 105.108.354 -40- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. Investments in any one issuer that represent 5% or more of total City's investments are as follows: Reported Issuer Investment Type Amount Federal Home Loan Bank U.S. Government Sponsored Enterprise Securities $ 34,520,606 Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City's investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2007, the City deposits (bank balances) were insured by the Federal Depository Insurance Corporation up to $100,000 and the remaining balance of the deposits were collateralized under California Law. Investment in State Investment Pool The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The fair value of the City's investment in this pool is reported in the accompanying financial statements at amounts based upon the City's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. See independent auditors' report. -41- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 3. CAPITALASSETS: A summary of changes in the Governmental Activities capital assets at June 30, 2007 is as follows: Balance at June 30, 2006 Balance at As Restated Increase Decrease June 30, 2007 Capital assets, not being depreciated: Land Right of way Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated: Buildings Improvements other than buildings Vehicles, machinery and equipment Furniture and fixtures Infrastructure Total capital assets being depreciated Less accumulated depreciation for: Buildings Improvements other than buildings Vehicles, machinery and equipment Furniture and fixtures Infrastructure Total accumulated depreciation Total capital assets being depreciated, net Total capital assets, net $ 59,918,663 $ 2,855,766 $ - $ 62,774,429 68,523,656 - - 68,523,656 54.385.846 14,890.779 --122A67 ,251) 39.809.374 182,828,165 17,746,545 (29,467,251) 171,107,459 37,981,281 15,467,712 - 53,448,993 20,808,441 18,747,094 - 39,555,535 8,033,621 1,183,727 (602,352) 8,614,996 1,258,583 951,573 (44,877) 2,165,279 371,231,661 45,931,007 (281,880) 416,880,788 439,313,587 82,281,113 (929,109) 520,665,591 (5,468,699) (1,196,948) (6,665,647) (2,512,753) (1,057,815) - (3,570,568) (5,536,882) (870,941) 527,031 (5,880,792) (927,185) (301,182) 16,958 (1,211,409) (98,153,125) (11,024,404) 281,880 (108,895,649) (112,598,644) _(14,451,290) 825.869 X126,224,065) 326,714,943 67,829,823 (103,240) 394,441,526 $ 509543.108 $ 85.576.368 $ (29.570.491) $ 565.548.985 Depreciation expense charged to functions/programs for the governmental activities as follows: General government $ 139,334 Public safety 199,602 Public works 11,154,890 Community development 142,082 Community services 2,274,394 Capital assets used by the government's internal service funds are charged to the various functions based on their usage of the assets 540.988 Total depreciation 14.451.290 See independent auditors' report. -42- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 4. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS: The composition of interfund balances as of June 30, 2007, is as follows: Due To/From Other Funds Receivable Fund Payable Fund General Fund Other Governmental Funds Community Services District Capital Outlay Capital Special Revenue Fund Projects Fund The amounts loaned from the General Fund to Other Governmental Funds are for operations. The amounts loaned from the Community Services District Special Revenue Fund to the Capital Outlay Capital Projects Fund were for capital improvements. Amount $ 26,883 99,520 $ 126,403 Advances From/To Other Funds Receivable Fund General Fund Payable Fund Capital Outlay Capital Projects Fund Other Governmental Funds Amount General Fund 200,000 1,784,552 1,984.552 The amount loaned to the Capital Outlay Capital Projects Fund and the Other Governmental Funds by the General Fund are advances to fund capital improvements which will be paid back when funds are available. Interfand Transfers The compositions of the City's interfund transfer balances as of June 30, 2007 are as follows: Transfers In General Fund Capital Outlay Capital Projects Fund Redevelopment Agency Capital Projects Fund Other Governmental Funds See independent auditors' report, Community Services Redevelopment District Agency Special Capital Other General Revenue Projects G overnmental Fund Fund Fund Funds Total $ - $ $ - $ 2,811,193 $ 2,811,193 6,969,000 147,992 14,862,273 21,979,265 - 2,600,000 2,600,000 501.500 2,956,348 3,457,848 $ 6.969.000 $ 501.500 $ 147.992 $ 23.229.814 $ 30.848306 -43- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 4. INTERFUND RECEIVABLES; PAYABLES AND TRANSFERS (CONTINUED): Interfund Transfers (Continued) The General Fund made transfers to the Capital Outlay Capital Projects Fund to provide funds for capital improvements. The Community Services District Special Revenue Fund transferred funds to the Other Governmental Funds to provide for debt service payments. The Other Governmental Funds transferred funds to the General Fund to provide funds for public works projects and transferred funds to the Capital Outlay Capital Projects Fund to provide funds for capital improvements. 5. LONG-TERM LIABILITIES: The following is a summary of the Governmental Activities long-term liability transactions for the year ended June 30, 2007. Balance at Balance at Due Within June 30, 2006 Additions Deletions June 30, 2007 One Year Bonds and Notes Payable: Tax allocation bonds: 2002 TAB $ 27,445,000 $ - $ (415,000) $ 27,030,000 $ 430,000 2006 TAB Series A 18,105,000 18,105,000 325,000 2006 TAB Series B 3,040,000 3,040,000 27,445,000 21,145,000 (415,000) 48,175,000 755,000 Less: bond discount (222,191) 3.527 (218,664) Total TAB 27,445,000 20,922,809 (411,473) 47,956,336 755,000 Certificates of participation 5,490,000 - (250,000) 5,240,000 255,000 Note payable 1,506,990 (494,211) 1,012,779 517,447 Total Bonds and Notes Payable 34,441,990 20,922,809 (1,155,684) 54,209,115 1,527,447 Capital lease payable 81,006 142,539 (36,108) 187,437 28,611 Claims payable 458,854 - (34,302) 424,552 19,238 Compensated absences 1,644,594 167.878 (88.797) 1,723,675 156,264 $ 36.626.444 21.233.226 (1314.891) S 56.544.779 $ 1.731.560 See independent auditors' report. -44- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds 2002 Tax Allocation Bonds: In April of 2002 the Redevelopment Agency of the City of Temecula issued $28,055,000 of 2002 Tax Allocation Bonds consisting entirely of current interest bonds. The proceeds from the bonds were used to refund the Agency's Redevelopment Project No. 1 1993 Series A Tax Allocation Bonds, discharge an obligation pursuant to the County Pass-Through Agreement of the Agency to the County of Riverside, finance' redevelopment activities within or of benefit to the Project Area and provide for the costs of issuing the 2002 Bonds, including the premium for the financial guaranty insurance policy and Debt Service Reserve Surety Bond. A portion of the proceeds from the sale of the 2002 Bonds, together with certain funds made available through the defeasance of the refunded bonds, were deposited in trust with an escrow agent to provide the remaining debt service payments on the refunded debt. The trust invests solely in direct obligations of the United States Government. The advanced refunding met the requirements of an in-substance defeasance. The Project 1993 bonds were removed from the RDA's long-term debt. The defeased debt was called on June 10; 2002. The 2002 Tax Allocation Bonds consist of: (1) $9,030,000 of Serial Bonds with annual interest rates ranging from 3.0%o to 5.0%, maturing on August 1 of each year beginning in 2003 through 2020 in amounts ranging from $95,000 to $755,000; (2) $6,485,000 of 5.125% Term Bonds due August 1, 2027 and (3) $12,540,000 of 5.250% Term Bonds due August 1, 2036. Total Tax Allocation Bonds outstanding at June 30, 2007 were $27,030,000. . Future debt service requirements on these bonds are as follows: Year Ending June 30, 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 2028-2032 2033-2037 Principal $ 430,000 445,000 465,000 485,000 505,000 2,860,000 3,610,000 4,620,000 5,940,000 7,670,000 $ 27,030,000 Interest Total $ 1,345,816 $ 1,775,816 1,328,316 1,310,117 1;291,116 1,271,064 5,992,821 5,221,352 4,181,706 2,824,356 1,047,900 $ 25.814.564 1,773,316 1,775,117 1,776,116 1,776,064 8,852,821 8,831,352 8,801,706 8,764,356 8,717,900 52,844,564 See independent auditors' report. -45- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (,Continued) 2006 Tag Allocation Bonds Series A and Series B Payable: In December 2006, the Redevelopment Agency of the City of Temecula issued $18,105,000 2006 Tax Allocation Bonds Series A and $3,040,000 2006 Tax Allocation Bonds Series B. The proceeds of the. bonds will be used to finance redevelopment activities within or of benefit to the Project Area, provide for the costs of issuing the 2006 Bonds, including the premium for a financial guaranty insurance policy for the Series A Bonds and the Series A Debt Service Reserve Surety Bond and establish a reserve account for the Series B Bonds. The 2006 Series A Bonds consist of. 1) $6,345,000 of Serial Bonds with annual interest rates ranging from 4.0% to 4.2%, maturing on August 1 of each year beginning in 2007 through 2020 in amounts ranging from $325,000 to $460,000; 2) $2,600,000 of 4.25% Tenn Bonds due August 1, 2030, 3) $3,945,000 of 4.5% Term Bonds due August 1, 2036 and 4) $5;215,000 of 4.5% Term Bonds due August 1, 2038. The outstanding balance of the Series A Bonds as of June 30, 2007 is $18,105,000. The 2006 Series B Bonds consist of. 1) $885,000 of Serial Bonds with annual interest rates ranging from 3.95% to 4.85%, maturing on December 15 of each year beginning in 2010 through 2022 in amounts ranging from $50,000 to $90,000; 2) $390,000 of 5.0% Term Bonds due December 15, 2026. and 3) $1,765,000 of 5.0% Term Bonds due December 15, 2038. The outstanding balance of the Series B Bonds as of June 30, 2007 is $3,040;000. The future debt service requirements on the 2006 Tax Allocation Bonds Series A are as follows: Year Ending June 30, 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 2028-2032 2033-2037 2038-2039 Principal $ 325,000 235,000 245,000 250,000 260,000 1,490,000 1,810,000 2,205,000 2,710,000 3,360,000 5,215,000 18.105.000 Interest $ 772,736 761,536 751,936 742,037 731,836 3,488,781 3,159,581 2,751,826 2,233,031 1,564,875 237.263 17.195.438 Total $ 1,097,736 996,536 996,936 992,037 991,836 4,978,781 4,969,581 4,956,826 4,943,031 4,924,875 5,452,263 $ 35.300.438 See independent auditors' report. -46- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): Tax Allocation Bonds (Continued) 2006 Tax Allocation Bonds Series A and Series B Payable (Continued): The future debt service requirements on the 2006 Tax Allocation Bonds Series B are as follows: Year Ending June 30, 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 2028-2032 2033-2037 2038-2039 Principal 50,000 55,000 305,000 385,000 480,000 615,000 780,000 370,000 $ 3.040.000 Interest $ 147,681 147,681 147,681 146,694 144,606 686,054 607,889 503,183 367,625 193,750 18,750 3,111,594 Total $ 147,681 147,681 147,681 196,694 199,606 991,054 992,889 983,183 982;625 973,750 388,750 6.151.594 Certificates of Participation In December of 2001, the Temecula Community Services District, working together with the Temecula. Public Facilities Financing Corporation, issued $6,465,000 of Certificates of Participation. The proceeds from the bonds were used to refund the Temecula Community Services District's 1992 Certificates of Participation executed to finance the costs of construction of a community recreation center, finance a portion of the costs of construction of various recreational facilities, purchase a municipal bond debt service reserve insurance policy in lieu of cash funding a reserve fund and to pay certain expenses of the transaction. A portion of the proceeds of the Certificates were deposited in an Escrow Fund to provide the remaining debt service payments on the 1992 Certificates of Participation. The defeased debt was redeemed on October 1, 2002. The 2001 Certificates of Participation consist of $6,465,000 of Certificates with annual interest rates ranging from 3.0% to 5.0% maturing on October 1 of each year beginning in 2002 through 2021 in amounts ranging from $225,000 to $1,355,000. Total Certificates of Participation outstanding at June 30, 2007 were $5,240,000. See independent auditors' report. -47- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): Certificates of Participation (Continued) Future debt service requirements on these certificates are as follows: Year Ending June 30, 2008 2009 2010 2011 2012 2013-2017 2018-2022 Principal $ 255,000 265,000 275,000 285,000 300,000 1,705,000 2,155,000 5..240.000 Interest $ 235,605 225,725 215,190 203,847 191;630 740,674 279,016 2.091:687 Total $ 490,605 490,725 490,190 488,847 491,630 2,445,674 2,434,016 7.331,687 Note Payable On December 10, 1997, the City of Temecula and the Riverside County Transportation Commission (RCTC) entered into an agreement for an advance of Measure "A" local streets and roads funds in the principal amount of $5,000,000, The advance shall be used to finance a portion of the cost of improvement to the I-15/Rancho California Road Interchange Project and the Widening of Highway 79 South from the I-15 Interchange easterly to Avenida de Missions. Under the agreement, the City instructs the RCTC to apply the City's portion of any Local Streets and Roads funding which would otherwise be distributed to the City under Measure "A" to pay any due, but unpaid obligations of the City to RCTC. The advance shall accrue interest payable by the City at a rate of 4.75% per annum. A repayment schedule has been established to ensure that the advance is repaid prior to June 1, 2009. The total note payable outstanding at June 30, 2007 was $1,012,779. The annual requirements to amortize the $1,012,779 note payable outstanding as of June 30, 2007 are as follows: Year Ending June 30, 2008 2009 Principal $ 517,447 495,332 $ 1.012.779 Interest Total $ 48,107 $ 565,554 23,528 518,860 $ 71:635 1.084.414 See independent auditors' report. -48- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): Capital Lease Payable The assets acquired through capital leases are as follows: Equipment Less: accumulated depreciation Governmental Activities $ 226,139 (73,766) $ 152,373 The future minimum lease obligations and the net present value of these minimum lease payments are as follows: Year Ending June 30, 2008 2009 2010 2011 2012 Total minimum lease payments Less: amounts representing interest Present value of minimum lease payments Claims Payable Governmental Activities $ 50,748 50,748 50,748 53,418 11,343 217,005 (29.568) $ 187.437 The claims liability of $424,552 is included in the internal service funds in the fund financial statements and is reported as a liability for governmental activities in the government-wide financial statements. Compensated Absences The outstanding liability for compensated absences earned at June 30, 2007 was $1,723,675. This liability represents the total unpaid vacation and compensation time earned by employees of the City in its governmental activities which is primarily liquidated from the general fund and internal service fund. See independent auditors' report. -49- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 6. INSURANCE PROGRAMS: The City is exposed to various risks of loss related to torts, theft, damage and destruction of assets, errors and omissions, road and walkway design hazards, vehicle accidents, and natural disasters for which the City maintains various insurance programs. The City has entered into contracts to supervise and administer these programs. General Liability The City is self-insured for General and Auto Liability claims up to $150,000. For amounts in excess of $150,000 and up to $10,000,000 per occurrence with an aggregate coverage of $ 10,000,000, the City has purchased insurance coverage. Workers Compensation The City maintains workers compensation insurance coverage through the American Insurance Group (AIG). Settled claims have not exceeded any of the City's coverage amounts in any of the last three fiscal years and there was no reductions in the City's coverage during the year ended June 30, 2007. Liabilities are recorded when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNR). The liability for claims and judgments is reported in the appropriate Internal Service Fund. An amount for current claims payable is calculated based on the current year expenses and the remainder is shown as noncurrent claims payable. Changes in claims payable for the years ended June 30, 2006 and June 30, 2007 are as follows: Liability as of June 30, 2005 $ 405,577 Claims and changes in estimates during the year ended June 30, 2006 79,286 Claim payments during the year ended June 30, 2006 (26,009) Liability as of June 30, 2006 458,854 Claims and changes in estimates during the year ended June 30, 2007 (15,064) Claim payments during the year ended June 30, 2007 (19,238) Liability as of June 30, 2007 $ 424 552 The ultimate amount of losses incurred through June 30, 2007 is dependent on future developments. Based upon information from the City Attorney, the City's claims administrators and others involved with the administration of the insurance programs, City management believes the accrual is adequate to cover such losses. See independent auditors' report. -50- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 7. RESERVES AND DESIGNATIONS OF FUND BALANCES: A city may set up "reserves" of fund equity to segregate fund balances which are not appropriable for expenditure in future periods, or which are legally set aside for a specific future use. Fund "designations" also may be established to indicate tentative plans for financial resource utilization in a future period. The City's reserves and designations at June 30, 2007 are tabulated below, followed by explanations as to the nature and purpose of each reserve and designation. Reserves: Encumbrances RDA Low/Moderate Income Housing Land held for resale Advances to other funds Long term assets Inventory Deposits and prepaid items Debt service Total Reserves Designated(Undesigmted: Continuing appropriations Economicunceminty Comprehensive leave Open space Retiree health Dutch Village Liberty Quany project SB621 (Tasin) Future CIP Undesignated Community Redevelopment Redevelopment Other services Agency Capital Agency Roripaugh Governmental General District special Revenue Outlay Capital Proiects CFD #03-02 Funds $ 1,813,248 $ 190,552 $ - 769,385 $ 14,999,781 $ 83,621 $ - $ - - - - 8,757,387 - - - - - - 6,616,177 - 98,484 - - 1,070,177 - - - - - - - 348,296 - 147,117 - - 3,747 - - - - - 110,881 - - - - - - 731,164 2.998.053 190.552 16.491245 14.999.781 329.222 731,164 200,543 1,732,654 12,299,321 - 1,415,494 296,884 506,226 - 3,574,851 - 150,000 - 266,908 - 857,792 - 1,327,364 - 20.335.782 4,721,260 23,036,725 42,414,144 32,723,603 Total Designated/ Undmignawd 40.934.281 2.029538 - 4.721.260 23.03025 42.414344 32.723603 Total Fund Balances SA222-UA i 2.220.090 S Ifi 491 245 s 19 721 041 S23365.942 $ 42 414 744 % 33 454.767 See independent auditors' report. -51- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 7. RESERVES AND DESIGNATIONS OF FUND BALANCES (CONTINUED): a. Encumbrances: These reserves represent the portion of purchase orders and contract for goods or services which has not yet been received as of June 30, 2007. b. Redevelopment Agency Low/Moderate Income Housing: This amount represents the required set-aside for low to moderate income housing from the Redevelopment Agency tax increment. c. Land Held for Resale: Reserves have been established for land and. improvements held for resale to indicate amounts that do not constitute available, spendable resources. d. Advances to Other Funds: This reserve has been established to indicate the non-current amount of an advance from the City to the Temecula Redevelopment Agency and an advance from the City's general fund to the City's capital projects fund. e. Long-Term Assets: These reserves represent the non-current balance of notes issued to various community organizations, to individuals under low and moderate-income housing programs, and to various .local small businesses. £ Inventory: This amount is reserved to indicate amounts that do not constitute available, spendable resources. g. Deposits and Prepaid Items: This amount is reserved to indicate amounts that do not constitute available, spendable resources. See independent auditors' report. -52- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 7. RESERVES AND DESIGNATIONS OF FUND BALANCES (CONTINUED): h. Debt Service: The reserves for debt service were established in accordance with trust indentures. i. Continuing Appropriations: This designation represents funds set aside by administrative action to be used for specific purposes in future years. j. Economic Uncertainty: This designation represents City Council adopted policy to set aside 30% of budgeted General Fund expenditures as a measure to ensure the fiscal health of the City. k. Comprehensive Leave: This designation represents the amount of funds set aside to pay comprehensive annual leave compensation due to employees upon their separation at their regular, non-overtime pay. 1. Open Space: This designation was established to set aside funds to acquire property that would become permanent open space. m. Retired Health: This designation was established to fund retiree health coverage. n. Dutch Village: This designation was established to fund a job training and college education facility. See independent auditors' report. -53- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 7. RESERVES AND DESIGNATIONS OF FUND BALANCES (CONTINUED): o. Liberty Quarry Project: This designation is to pay for the City's review and comment on the environmental impact report concerning the Liberty Quarry Project and for potential litigation concerning the establishment of the Liberty Quarry. Granite Construction has proposed a quarry that would be 1,000 feet deep and a mile long on a site north of the San Diego County line bordering Temecula. p. SB621 (Tasin): This designation is to identify tribal gaming monies earmarked for approved infrastructure .improvements to mitigate traffic impacts from the Pechanga Casino and Resort, including a new freeway interchange and traffic improvements to Pechanga Parkway. q. Future CIP: This designation was established to set aside funds for future capital improvement programs. 8. PUBLIC EMPLOYEES RETIREMENT SYSTEM: a. Plan Description: The City's defined benefit pension plan provides retirement and disability benefits, annual cost- of-living adjustments, and death benefits to plan members and beneficiaries. The Plan is part of the Public Agency portion of the California Public Employees' Retirement System (Ca1PERS), an agent multiple-employer plan administered by Ca1PERS, which acts as a common investment and administrative agent for participating public entities within the State of California. A menu of benefit provisions as well as other requirements are established by State statutes within the Public Employees' Retirement Law. The City selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through local ordinance. CalPERS issues a separate comprehensive annual financial report. Copies of CaIPERS's annual financial report may be obtained from the CalPERS Executive Office: 400 P Street, Sacramento, CA 95814. See independent auditors' report. -54- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 8. PUBLIC EMPLOYEES RETIREMENT SYSTEM (CONTINUED): b. Employee and Employer Contribution Obligations: The City makes the contributions required of City employees on their behalf and for their account. The rates are set by statute and therefore remain unchanged from year to year. The present rate for the City is 13.7%. The City is required to contribute the remaining amounts necessary to fund the benefits for its members, using the actuarial basis recommended by the PERS actuaries and actuarial consultants and adopted by the Board of Administration. c. Funding Status and Progress: For 2007, the City's actual and contributed annual pension cost was $2,962,575. The required contribution for the fiscal year 2007 was determined as part of the June 30, 2004 actuarial valuation (most recent available) using the entry age normal actuarial cost method with the contributions determined as a percent of payroll. The actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses), (b) projected salary increases that vary by duration of service ranging from 3.25% to 14.45% for miscellaneous members, (c) inflation of 3.0%, (d) payroll growth of 3.25%, and (e) an individual salary growth based on merit scale varying by duration of employment, coupled with an assumed annual inflation component of 3.0%, and an annual production growth of 0.25%. The actuarial value of the Plan's assets were determined using a technique that smoothes the effect of short-term volatility in the market value of investments over a three year period. The Plans' initial unfunded liabilities are amortized over a closed period that depends on the Plans' date of entry into CalPERS. Subsequent plan amendments are amortized as a level percentage of pay over a closed 20 year period. Gains and losses that occur in the operation of the plan are amortized over an open 30 year period, which results in an amortization of 6% of unamortized gains and losses each year. If the Plans accrued liability exceeds the actuarial value of plan assets, then the amortization payment on the total unfunded liability may not be lower than the payment calculated over a 30 year amortization period. See independent auditors' report. -55- CITY OF TEMECULA NOTES TO BASIC FINANCIAL' STATEMENTS (CONTINUED) June 30, 2007 8. PUBLIC EMPLOYEES RETIREMENT SYSTEM (CONTINUED): d. Trend Information: Fiscal Year Ending June 30, 06/30/05 06/30/06 06/30/07. Actuarial Valuation Date 6/30/04 6/30/05 6/30/06 Actuarial Value of Assets (A) $ 14,388,212 18,687,800 22,973,422 Three Year Trend Information for PERS Annual Percentage Pension ofAPC Cost (APC) Contributed $ 2,365,266 100% 2,805,478 100% 2,962,575 1000/0 Schedule of Funding Progress for PERS Actuarial Accrued Unfunded Liability (Overfunded) (AAL) AAL Funded Covered Entry Age (UAAL) Ratio Payroll (B) (B-A) (A/B) (C) $ 19,188,867 $ 4,800,655 75.0% $10,121,613 24,985,767 6,297,967 74.8% 11,326,214 30,011,128 7,037,706 76.5% 12,464,916 9. DEFERRED COMPENSATION PLAN: Net Pension Obligation UAAL as a % of Covered Pavroll [(B-A/C1 47.4 % 55.6 % 56.5 % Certain provisions of the Small Business Job Protection Act (the Act) affected Internal Revenue Code Section 457 plans by eliminating the requirement that Section 457 plan assets legally remain the assets of the sponsoring government. The Act requires that amounts deferred under a Section 457 plan be held in trust for the exclusive benefit of participating employees and not be accessible by the government or its creditors. The City has implemented GASB 32, "Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans". The assets have been transferred into a trust, and are no longer subject to claims of the City's general creditors, and are no longer considered the assets of the City. The plan permits all City employees to defer a portion of their salary until future years. The amount deferred is not available to employees until termination, retirement, death or unavoidable emergency. See independent auditors' report. -56- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 9. DEFERRED COMPENSATION PLAN (CONTINUED): The City contracts with private deferred compensation administration firms to act as an agent of the City to fulfill all the City's administrative responsibilities. The duties performed by this fiduciary on behalf of the City include assisting employees in the execution of investment transactions and providing summary and participant reporting of these investments. Since the City has placed the assets into a trust and has little administrative involvement and does not perform the investing function for the plan, the assets have been removed from the City's financial statements. 10. DEFINED CONTRIBUTION PLAN: The City provides pension benefits for all its project (part time, temporary) employees through a defined contribution plan. The plan's administrator is Nationwide Retirement/OBRA. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. All project employees are eligible to participate from the date of employment. Federal legislation requires contribution of at least 7.5% to a retirement plan. The City contributes 3.75% of the employee's salary as deferred compensation. Additionally, employees contribute 3.75% of salary towards this program on a pre-tax basis. The City's contribution for each employee (and interest earned by the account) is fully vested immediately. For the year ended June 30, 2007, the City's payroll covered by the plan was $1,361,466. The City made employer contributions of $51,055 (3.75% of current covered payroll), and employees contributed $51,055 (3.75% of current covered payroll). 11. LITIGATION, COMMITMENTS, AND CONTINGENT LIABILITIES: Grant Audit Contingencies Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial See independent auditors' report. -57- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 11. LITIGATION, COMMITMENTS, AND CONTINGENT LIABILITIES (CONTINUED): Proposition 62 On September 28, 1995, the California Supreme Court affirmed a Court of Appeals decision which reinstated provisions of Proposition 62 originally enacted in 1986 and then reversed by a lower court. Under the provisions of Proposition 62, California governmental agencies are required to obtain voter approval for any general tax to be enacted. It is unclear whether Proposition 62 will be made retroactive to 1986, thus causing California cities and districts to refund to taxpayers taxes not approved by voters and collected such as utility, business license or hotel occupancy taxes. At this time, it is not possible to determine what financial impact, if any, this decision may have on the city. 12. AFFORDABLE HOUSING GRANT AND LOAN AGREEMENTS: The Temecula Redevelopment Agency sponsors a, program to help first time home buyers afford a home in Temecula. This program is called the First Time Buyers Program. It provides a 30-year second mortgage at 5% interest to qualified buyers. The maximum assistance is 201/o of the purchase price plus closing costs up to a maximum of $24,000. The loan is deferred for the first 5 years, and then fully amortized in years 6 to 30. The balance due the Temecula Redevelopment Agency at June 30, 2007 is $40,246 with $24,400 deferred and $15,846 being amortized. The Temecula Redevelopment Agency also sponsors a home improvement loan program. Under this program qualified residents may borrow up to $5,000 at 5% interest for up to five years. The loan is only made to fund certain repairs. The program contains provisions allowing the loans to be forgiven at the end of the five year term if those provisions are not breached. As of June 30, 2007 the Temecula Redevelopment Agency was owed $590,792 under this program. The Agency has a note receivable in the amount of $3,000,000 from D'Alto Partners LLC, a California Limited Liability Company (the LLC). The funds were loaned to the LLC under an Owner Participation Agreement (the OPA) under which the LLC was to develop and operate a mixed used development including providing affordable housing. The note is secured, as second trust deed fora term of 55 years and will be forgiven if there are no violations of the covenants of the OPA. If there, is a violation of covenants of the OPA, the Agency can require full payment of the principal. See independent auditors' report. -58- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 12. AFFORDABLE HOUSING GRANT AND LOAN AGREEMENTS (CONTINUED): The Agency has a note receivable in the amount of $2,615,000 from 28,500 Pujol Street, a California Limited Partnership (the Partnership). The funds were loaned to the Partnership under a Disposition and Development Agreement (the DDA) dated in 2003 under which the Partnership developed affordable housing. The note is due 55 years from the date of the note (August 1, 2004) with interest accrued at a rate of 3%. Fifty percent of the residual receipts as defined in the DDA for each calendar year are due March 15 of the following year. Any residual receipts are to be applied to the accrued interest. Any unpaid interest is added to the note. As of June 30, 2007, the total due from the Partnership amounted to $2,850,545 which included $235,545 of accrued interest. 13. NO COMMITMENT DEBT- Multi-Family Housing Revenue Bonds On April 25, 1996, the Temecula Redevelopment Agency issued $2,427,500 of Multifamily Housing Revenue Bonds. The proceeds of the issuance were loaned to the Coachella Valley Housing Coalition (the "Borrower"), a California nonprofit public benefit corporation, to enable the Borrower to acquire and rehabilitate a 150-unit multifamily housing rental apartment development located in the City. A portion of the housing units is rented to persons of very low income. The Borrower makes loan payments to the trustee, an assignee of the Agency, of amounts sufficient to pay in full all principal and interest due on the bonds. The bonds are a special obligation of the Agency payable solely, from revenues of the Borrower and other funds pledged pursuant to the trust indenture. At June 30, 2007 these bonds had an outstanding balance of $1,457,500. Special Tax Refunding Bonds On June 11, 1998 the Community Facilities District No. 88-12 of the City of Temecula (Ynez Corridor) issued $18,690,000 of Special Tax Refunding Bonds. The 1998 Series A Bonds were issued to (1) refund the outstanding Community Facilities District No. 88-12 of the County of Riverside (Ynez Corridor) Series 1992 Special Tax Bonds, (2) fund a reserve fund for the 1998 Series A Bonds, and (3) pay the costs of issuing the 1998 Series A Bonds. The 1998 Series A Bonds are payable from the Special Tax revenues derived by the District from the levy of the Special Taxes, and are secured by a first pledge of all of the Special Tax revenues and monies deposited in certain funds. At June 30, 2007 these bonds had an outstanding balance of $12,330,000. See independent auditors' report. -59- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 13. NO COMMITMENT DEBT (CONTINUED): Special Tax Bonds In August 2002, the Temecula Public Financing Authority Facilities District No. 01-02 (Harveston) issued $17,310,000 of Special Tax Bonds. The bonds were issued to refund the Winchester Hills Financing Authority Community Facilities District No. 98-1 Special Tax Bonds, finance the acquisition of improvements in the District, pay interest on the bonds for a limited period, pay administrative costs and pay the costs of issuing the bonds. The bonds are payable from Special Tax Revenues derived by the District from the levy of the Special Taxes and are secured by a fast pledge of all the Special Tax Revenues and monies deposited in certain funds. These bonds were refunded in September 2006, with the issuance of the 2006 Special Tax Refunding Bonds. Neither the faith and credit nor the taxing power of the City or agency is pledged to the payment of the four bond issuances disclosed above. Therefore, the bonds are not included in the financial statements. In Ju1y2003, the Temecula Public Financing Authority Community Facilities District No. 03-1 (Crown Hill District) issued $12,155,000 in special tax bonds. The bonds were issued to finance the acquisition and construction of improvements in the District, pay interest on the bonds for a limited period, pay administrative costs and pay the costs of issuing the bonds. The bonds are payable from special tax revenues derived by the District from the levy of the special taxes and are secured by a first pledge of all the special tax revenues and monies deposited in certain funds. At June 30, 2007, these bonds had an outstanding balance of $11,600,000. In September 2003, the City of Temecula Assessment District No. 03-4 (John Warner Road) issued $1,210,000 in special tax bonds. The bonds were issued to finance the cost of certain road and drainage improvements in the District, pay interest on the bonds for a limited period, pay administrative costs, pay the cots of issuing the bonds and make a deposit to the reserve fund for the bonds. The bonds are payable from special tax revenue derived by the District from the levy of the special taxes and are secured by a first pledge of all the special tax revenues and monies deposited in certain funds. At June 30, 2007, these bonds had an outstanding balance of $1,025,000. In December 2003, the Temecula Public Financing Authority Community Facilities District No. 03-3 (Wolf Creek District) issued $30,990,000 in special tax bonds. The bonds were issued to finance the acquisition and construction of improvements in the District, pay interest on the bonds for a limited period, pay administrative costs and pay the cost of issuing the bonds. The bonds are payable from special tax revenues derived by the District from the levy of special taxes and are secured by a first pledge of all the special tax revenues and monies deposited in certain funds. At June 30, 2007, these bonds had and outstanding balance of $29,980,000. See independent auditors' report. -60- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 13. NO COMMITMENT DEBT (CONTINUED): Special Tax Bonds (Continued) In August 2004, the Temecula Public Financing Authority Community Facilities District No. 03-06 (Harveston 11) issued $4,845,000 in special tax bonds. The bonds were issued to finance the acquisition and construction of improvements in the District, pay interest on the bonds for a limited period, pay administrative costs and pay the cost of issuing the bonds. The bonds are payable from special tax revenues derived by the District from the levy of special taxes and are secured by a first pledge of all the special tax revenues and monies deposited in certain funds. At June 30, 2007, these bonds had and outstanding balance of $4,760,000. On April 27, 2006, the Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) issued $51,250,000 in special tax bonds. The bonds were issued to finance the acquisition and construction of improvements in the District, pay interest on the bonds for a limited period, pay administrative costs and pay the cost of issuing the bonds. The bonds are payable from special tax revenues derived by the District from the levy of special taxes and are secured by a first pledge of all the special tax revenues and monies deposited in certain funds. At June 30, 2007, these bonds had and outstanding balance of $51,250,000. Additional information related to these bonds is presented in Note 15. In August 2007, the Temecula Public Financing Authority Community Facilities District No. 01-02 (Harveston) issued $14,470,000 2006 Special Tax Refunding Bonds, Series A and $3,075,0002006 Special Tax Refunding Bonds, Subordinate Series B. The bonds were issued refimd on September 1, 2006, the $17,310,000 aggregate outstanding principal amount of the Community Facilities District No. 01-02 (Harveston) Special Tax Bonds, 2002 Series A, pay the costs for issuing the 2006 Bonds, acquire a reserve surety for the Series A Bonds and establish a reserve for the Series B Bonds. The bonds are payable from special tax revenues derived by the District from the levy of special taxes are secured by a first pledge of all the special tax revenues and monies deposited in certain funds. At June 30, 2007, $14;470,000 2006 Series A and $3,075,000 2006 Series B bonds remain outstanding. See independent auditors' report. -61- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 13. NO COMMITMENT DEBT (CONTINUED): Multi-Family Housing Revenue Note On July 17, 1998 the Temecula Redevelopment Agency borrowed $5,800,000 from Washington Mutual Bank, FA. The proceeds were loaned to Temecula Gardens LP (the "Borrower"), a California limited partnership, to assist the Borrower in the acquisition of land, acquisition and rehabilitation of an existing multi-family housing rental project consisting of 38 units and related appurtenant facilities located on such land, and construction of an additional 38 housing units and related appurtenant facilities located on such site. All of the housing units are to be rented exclusively to persons or families of very low or lower income. The financing has received a bond volume allocation from the California Debt Limit Advisory Commission. The loan is payable solely from project revenues (which include an annual Redevelopment Agency contribution). The loan is secured by a pledge of project revenues, and deed of trust encumbering Temecula Gardens, LPs leasehold interest in the project site. At June 30, 2007 these bonds had an outstanding balance of $5,260,920. The loan is not a general obligation of the Redevelopment Agency of the City. 14. POST EMPLOYMENT BENEFITS: In addition to the pension benefits described in Note 7, the City provides postretirement health care benefits in accordance with memorandum of understanding agreements signed between the City and the various labor groups. Employees who retire from the City under the CaIPERS retirement plan are eligible to have their medical, dental and life benefits continued in accordance with their eligibility level at retirement, subject to annual contribution caps of $9,600 for all employees. The City's regular health care benefit providers underwrite the retiree's policies. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans. As of year-end, there were 12 retired employees receiving postretirement benefits. The City finances the plan on a pay-as-you-go basis. For the year ended June 30, 2007, the City recognized as incurred $48,009 of expenditures. There were no retiree contributions received. See independent auditors' report. -62- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 15. CONTINGENCIES: $51,250,000 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) 2006 Special Tax Bonds The master developer of the land within Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch) (the Community Facilities District) is Ashby USA, LLC, a California limited liability company, which, as of September 14, 2007, is the current owner of land that has approximately 8133% of the estimated special tax liability with respect to the Community Facilities District. The special taxes to be levied in the Community Facilities District are the primary source of funds to repay the Bonds. In connection with the issuance of the Bonds, Ashby USA, LLC advised the Authority that it is managed by Ashby Development Company, Inc., a California corporation, one of the members of Ashby USA, LLC: The City and Ashby USA, LLC entered into a Development Agreement for development of the Project in December 2002. Ashby USA, LLC also identified USA Investment Partners, LLC, a Nevada limited liability company as another member of Ashby USA, LLC. The Authority also has been advised by Ashby USA, LLC that USA Investment Partners, LLC made a loan to Ashby USA, LLC in the principal amount of $4,250,000 which is secured by a junior deed of trust on property within the Community Facilities District. The Authority has been further advised that USA Investment Partners, LLC is also a member and 50% owner of Tanamera Homes, LLC, the 100% member of three limited liability companies that own land within the Community Facilities District that is responsible, as of June 1, 2006, for approximately 15.52% of the estimated allocation of special tax liability with respect to the Community Facilities District; and that USA Investment Partners, LLC is a 95% member of the nonmember manager of those three entities. On May 26, 2006, the Authority was notified that Chapter I I reorganization filings were made in the U.S. Bankruptcy Court, District of Nevada (Las Vegas) on April 13, 2006; for USA Commercial Mortgage Company and four related entities which are affiliates of or have common ownership with USA Investment Partners, LLC. As of April 13, 2006, USA Investment Partners, LLC, however, was not one of the entities for which Chapter 11 reorganization filings were made. On April 4, 2007, however, involuntary bankruptcy petitions were filed against USA Investment Partners in the U.S. Bankruptcy Court, District of Nevada (Las Vegas) and the case is still pending. Several matters concerning Ashby USA, LLC and the bankruptcies were not discussed in the Official Statement. Since the close of the Bonds, the Authority has not made any disbursements to Ashby USA from the proceeds of the Bonds. See independent auditors' report. -63- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 15. CONTINGENCIES (CONTINUED): $51,250,000 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch), 2006 Special Tax Bonds (Continued) As of August 8, 2007, the City has been advised that Ashby USA has not made any payments on its loan with Amtrust Bank (formerly Ohio Savings Bank) and that a forbearance letter from Amtrust Bank to Ashby USA was in place. The City does not have any information as to the expiration date of such forbearance letter or the expectation of its being extended. Ashby USA did not make its April 2007 or its December 2007 Special Tax payments for the CFD. The Authority has authorized the actions necessary to foreclose on the delinquent taxes. The Authority is proceeding to foreclose on the Ashby USA property within the CFD for the payment of delinquent taxes in Bankruptcy Court for the Southern District of Nevada. Tanamera Homes advised the Authority pursuant to its Disclosure No.2 that as of September 19, 2006 Tanamera/Roripaugh II, LLC, and Traditions at Roripaugh received notices of default from their lenders. Since that time, the lenders of all three properties in the CFD owned by a Tanamera entity have foreclosed on the properties and are now in possession of the properties. Two of the three new owners have paid delinquent special taxes and a third has indicated a willingness to do so. Another property owner, Davidson Roripaugh 122, also failed to pay is Special Taxes for the CFD. A foreclosure action has been filed and served on Davidson Roripaugh 122 and all persons with an interest in its property within the CFD. A letter of credit was posted by Ohio Savings Bank (with a confirmation from Citibank) in April 2006, and a new one posted in April 2007, in the amount of $6,679,002, which is equivalent to two years estimated expected annual Special Taxes. The Letter of Credit may be drawn upon to pay debt service if the Special Taxes are not paid. As of August 24, 2007, the date of Release No. 15, the Letter of Credit is still outstanding in the amount of $6,473,221, but a draw in the amount of $1,561,909 was made on September 4, 2007. As of September 14, 2007, no claims for damages have been filed with the Authority by the Bondholders, Ashby USA, Ohio Savings, Davidson Roripaugh 122 or the Tanamera Entities. On March 6, 2007, the Authority entered into Supplement No. I to the Acquisition Agreement with Ashby USA and the City entered into the Fourth Operating Memorandum to the Development Agreement with Ashby USA and Ohio Savings Bank (now Amtrust Bank). Among other provisions, Supplement No. 1 to the Acquisition Agreement reaffirms Ashby USA obligation: to indemnify the Authority, CFD and City against all claims or litigation by Bondholders, releases the Authority, CFD and City (and their respective officials and employees) from all claims up to and including March 6, 2007 by Ashby USA, and provides that in any future cause of action asserted by Ashby USA accruing after March 6, 2007 Ashby USA's remedies are limited to mandate or specific performance. The assertion of damages against the Authority or the CFD is not permitted under the Acquisition Agreement. See independent auditors' report. -64- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 15. CONTINGENCIES (CONTINUED): $51,250,000 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch), 2006 Special Tax Bonds (Continued) Similarly, the Fourth Operating memorandum, among its other provisions, releases the Authority, CFD and City (and their respective officials and employees) from all claims up to and including March 6, 2007 by Ashby USA and Ohio Savings Bank (now Amtrust Bank), and provides that in any future cause of action asserted by Ashby USA or Amtrust accruing after March 6, 2007, Ashby USA and Amtrust's remedies are limited to mandate or specific performance. The assertion of damages against the Authority or City is not permitted. The Authority has issued 17 Releases, one Supplement Release, one Continuing Disclosure Annual Report for fiscal year 2006-07, and one Report of Significant Event describing in greater detail the events that have taken place with respect to the Project and the Bonds. All are public documents filed in Nationally Recognized Municipal Securities Information Repositories. As of August 8, 2007, Ashby USA is in negotiations with KB Home Coastal for the sale of certain portions of the Project and KB's take over of the construction of the public improvements. As of December 19, 2007, no agreement has been reached. Certain construction companies have filed stop notices and litigation related to the construction of public improvements for the Roripaugh Ranch Project. The stop notice from each contractor seeks payment of the amounts due from payments the Authority will make to Ashby USA from the proceeds of the $51,250,000 Temecula Public Financing Authority Community Facilities District No. 03-02 (Roripaugh Ranch), 2006 Special Tax Bonds pursuant to the Acquisition Agreement between Ashby USA and the Authority. As of June 30, 2007, $46,954,244 of the $51,250,000 in bonds remaining in various Authority funds. 16. RESTATEMENTS TO NET ASSETS/BEGINNING FUND BALANCES: Net Assets, As Restated: Net assets (deficit) as previously reported June 30, 2006 $ 639,715,879 Capital assets reclassified to land held for resale: Increase in capital assets for expenditures not capitalized in prior years 216,904 Reduction in capital assets for land capitalized incorrectly (2,181,000) Reduction for capital assets for land sold in prior years (489,833) Net assets (deficit) as restated June 30, 2006 637.261.950 See independent auditors' report. -65- CITY OF TEMECULA NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 16. RESTATEMENTS TO NET ASSETS/BEGINNING FUND BALANCES (CONTINUED): Fund Balances, as Restated: Redevelopment Agency Special Revenue Fund Fund balances as previously reported June 30, 2006 $ 9,959,527 Capital assets reclassified to land held for resale 3,744,368 Increase in land for costs not capitalized previously 216,904 Fund balances as restated June 30, 2006 13.920.799 17. SUBSEQUENT EVENT: On October 17, 2007, the Agency issued the 2007 Tax Allocation Bonds in the amount of $15,790,000. Proceeds from the bonds will be used to finance redevelopment projects, establish a reserve account, fund capitalized interest with respect to a portion of the 2007 bonds to June 15, 2010 and provide for costs of issuing the 2007 Bonds. Interest on the 2007 bonds will be payable semi-annually on each June 15 and December 15 commencing June 15, 2008 with principal due annually on December 15, commencing December 15, 2010 through December 15, 2038. See independent auditors' report. -66- Y (THIS PAGE INTENTIONALLY LEFT BLANK) CITY OF TEMECULA BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the year ended June 30, 2007 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative). REVENUES: Taxes $ 45,486,000 $ 45,319,523 $ 45,694,463 $ 374,940 Licenses and pern its 4,919,521 4,959,048 5,884,122 925,074 Intergovernmental 554,970 1,339,073 1,751;048 411,975 Charges for services 7;604,999 6,910,678 6;671,346 (239,332) Fines and forfeitures 1,260,000 1,320,000 1,307,174 (12,826) Investment income 1,500,006 1,725,000 3,499,358 1,774,358 Other 44,952 50,952 129,982 79,030 TOTALREVENUES 61,370,442 61,624,274 64,937,493 3,313,219 EXPENDITURES: General Government: City Council 434,715 464,715 416,000 48,715 Community support 350,750 _ 400,750 338,166 63,584 City manager 1,198,750 1,237,989 1,174,140. 63,849 Cityclerk 1,063,383 1;063,383 1,014,197 49,186 City attorney 800,000 800,000 681,011 , - 118,989 Finance 2,056,330 2,086,755 1,959,739 127,016 Personnel 637,566 686,635 627,960 58,675 Nondepartmentai 11,383,127 9,689,627 8,932,460 757,167 Total General Government 17,924,621 16,429,854 15,143,673 1,286,181 Public Safety: Police 18,211,059 17,979,612 17,685,965 293,647 Fire 5,323,274 5,323,274 4,105,366 1,217,908 Animal control 160,000 160,000 159,597 403 Total Public Safety 23,694,333 23,462,886 21,950,928 1,511,958 Public Works 9,972,475 10,993,369 8,602,982 2,390,387 (Continued) See independent auditors' report and note to required supplementary information. -69- CITY OF TEMECULA BUDGETARY COMPARISON SCHEDULE . (CONTINUED) GENERAL FUND _For the year ended June 30, 2006 PENDITURES (CONTINUED): Community Development: Planning Building and safety Land development Economic development Disaster relief - Total Community Development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 3,777,642 4,100,284 $ 3,277,309 $ 822,975 3,109,374 3,139,374 2,794,729 344,645 2,032,325 2,690,205 2,168;543 521,662 882,537 935,582 862,554 73,028 - 43,089 36,428 6,661 9,801,878 10,908,534 9,139,563 1,768,971 61,393,307 61,794,643 54,837,146 6,957,497 (22,865) (170,369) 10,100,347 10,270,716 2,181,850 2,811,509 2,811,193 (316) (1,140,000) (6,969,000) (6,969,000) - 1,041,850 (4,157,491) (4,157,807) (316) 1,018,985 (4,327;860) 5,942,540 10,270,400 37,989,794 37,989,794 37,989,794 - $ 39,008,779 $ 33,661,934 $ 43,932,334 $ 10,270,400 See independent auditors' report and note to required supplementary information. -70- CITY OF TEMECULA BUDGETARY COWARISON SCHEDULE COMMUNTPY SERVICES DISTRICT SPECIAL REVENUE FUND For the year ended June 30, 2007 REVENUES: Taxes Intergovernmental Charges for services Investment income Other TOTALREVENUES EXPENDITURES: Current: Community services TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with Final Budget Budgeted Amounts - Positive Original Final Actual (Negative): $ 3,050,122 $ 3,050,122 $ 2,985,206 $ (64,916) 21,800 21,800 21,841 41 15,531,533 15,522,370 15,320,780 (201,590) 45;360 45,360 131,775 86,415 400 400 2,632 2;232 18,649,215 18,640,052 18,462,234 (177,818) 18,670,222 19,055,497 17,788,867 1,266,630 18,670,222 19,055,497 17,788,867 1,266,630 (21,007) (415,445) 673,367 1,088,812 (501,500) (501,500) (501;500) - (501,500) (501,500) (501,500) - (522,507) (916,945) 171,867 1,088,812 2,048,223 2,048,223 2,048,223 - $ 1,525,716 $ 1,131,278 $ 2,220,090 $ 1,088,812 See independent auditors' report and note to required supplementary information. -71- CITY OF TEMEC.'ULA BUDGETARY COMPARISON SCHEDULE REDEVELOPMENT AGENCY SPECIAL REVENUE FUND For the year ended June 30, 2007 - - REVENUES: Taxes Investment income Other TOTALREVENUES EXPENDITURES: Current: Community development Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES FUND BALANCE AT BEGINNING OF YEAR, AS RESTATED FUND BALANCE AT END OF YEAR Variance with - Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 2,822,210 $ 2,972,818 $ 3,126,735 $ 153,917 226,000 226,000 533,237 307,237 45,000 2,734,646 2,950,963 216,317 3,093,210 5,933,464 6,610,935 677,471 1,016,418 1,044,767 552,184 492,583 9,595,295 2,995,722 3,488,305 (492,583) 10,611,713 4,040,489 4,040,489 - (7,518,503) 1,892,975 2,570,446. 677,471 13,920,799 13,920,799 13,920,799 $ 6,402,296 $ 15,813,774 $ 16,491,245 $ 677,471 See. independent auditors' report and note to required supplementary information. 72 CITY OF TEMECULA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION June 30, 2007 L BUDGETS AND BUDGETARY ACCOUNTING: The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1) The annual budget adopted by the City Council provides for the general operation of the City. It includes proposed expenditures and the means of financing them. 2) The City Council approves total budgeted appropriations and any amendments to appropriations throughout the year. This "appropriated budget" covers substantially all City expenditures, with the exception of debt service on bond issues and capital improvement projects, which expenditures constitute legally-authorized "non-appropriated budget". There were no significant non-budgeted financial activities. Actual expenditures may not exceed budgeted appropriations at the department level. However, the City manager is authorized to transfer budgeted amounts between individual accounts within a department. 3) Formal budgetary integration is employed as a management control device. Commitments for materials and services, such as purchase orders and contracts, are recorded during the year as encumbrances to assist in controlling expenditures. Appropriations.which are encumbered at year end lapse, and then are. added to the following year's budgeted appropriations. However, encumbrances at year end are reported as reservations of fund balance. 4) Budgets for the General, Special Revenue and Debt Service Funds are adopted on .a basis substantially consistent with generally accepted accounting principles (GAAP). Accordingly, actual revenues and expenditures can be compared with related budgeted amounts without any significant reconciling items. 5) Under Article XIIIB of the California Constitution (the Gann. Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from. the proceeds of taxes, and . if proceeds of taxes exceed allowed appropriations, the excess must either be refunded to the State Controller, returned to the taxpayers through revised tax rates or revised fee schedules,. or an excess in one year may be offset against a deficit in the following year. For the fiscal year ended. June 30, 2007, based on calculations by City Management, proceeds of taxes did not exceed related appropriations. See independent auditors' report. -73- (THIS PAGE INTENTIONALLY LEFT' BLAND -74- OTHER GOVERNMENTAL FUNDS Special Revenue Funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes. -Debt: Service Funds are used to account for the accumulation of resources for, and the payment of, principal and interest on long-term liabilities. Capital Projects Funds- are used to account for the acquisition and construction of major capital facilities. -75- (TMS PAGE INTENTIONALLY LEFT BLAND C1TY OF TEMECULA COMBINING BALANCE SHEET OTHER GOVERNMENTAL FUNDS June 30, 2007 ASSETS Cash and investments Cash and investments with fiscal agents Interest receivable - Taxes receivable Intergovernmental receivable TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Deposits Due to other funds Advances from other funds - TOTAL LIABILITIES FUND BALANCES: Reserved: Debt service Unreserved: Special revenue Capital projects - TOTAL FUND BALANCES TOTAL LIABIL 1TIES AND FUND BALANCES Total Special Debt Capital' Other Revenue Service Projects Governmental Funds - Funds - Funds Funds 1 13,463,512 $ 2,171,501 $ 247,812 $ 15,882,825 - 247,525 17,919,941 18,167,466 173,403 29,212 242,175 444;790 - 67,478 - 67,478 761,302 - 761,302 $ 14;398,217 $ 2;515,716 $ 18,409,928 $ 35,323,861 $ 57,659 $ $ $ 57,659. 26,883 26,883 - 1,784,552 1,784,552 84,542 1,784,552 1,869,D94 - 731,164 731,164 14,313,675 - - 14,313,675 - 18,409,928 18,409,928 14,313,675 731,164 18,409,928 33,454;767 1 14,398,217 $ 2,515,716 $ 18,409,928 $ 35,323,861 -77- CITY OF TEMECULA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER GOVERNN ENTAL FUNDS For the year ended June 30,2007 REVENUES: Takes Intergovernmental Investment income _ Charges for services Other TOTAL REVENUES EXPENDITURES: Current: General government Community development Capital outlay Debt service: Principal retirement Interest and fiscal charges Cost of issuance Tax increment pass-thmughs TOTAL EXPENDITUR EXCESS OF REVENUES OVER , (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Capital debt issued Bond discount TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR Total Special Debt -Capital Other Revenue Service Projects Governmental Funds Funds Funds Funds $ - $ 12,506,938 $ - $ 12,506,938 6,475,436 - 6,475,436 623,674 89,899 1,283,332 1,996,905 6,134,458 - - 6,134,458 - - 6,404 6,404 13,233,568 12,596,837 1,289,736 27,120,141 63,337 - 63,337 - 119,791 - 119,791 - 10,032,587 10,032,587 494,211 665,000 1,159,211 71,018 1,898,189 1,969,207 - 421,009 421009 - 8,778,831 8,778,831 628,566 11,882,820 10,032,587 .22,543,973 12,605,002 714,017 (8,742,851) 4,576,168 - 501,500 2,956,348 3,457,848 (15,409,705) (2,600,000) (5,220,109) (23,229,814) 893,523 893,523 (222,191) (222,191) (15,409,705) (1,427,168) (2,263,761) (19,100,634) .(2,804,703) (713,151) (11,006,612) (14,524,466) 17,118,378 1,444,315 29,416,540 47,979,233 $ 14,313,675 $ 731,164 $ 18,409,928 $ 33,454,767 -78- OTHER SPECIAL REVENUE FUNDS Gas Tax - This fund is used to account for revenues apportioned under the Streets and Highways Code of the State of California- State Transportation - This fund is used to account for the City's share of revenue received under AB 2928 and is to be used for traffic congestion relief as part of the State Traffic Congestion Relief Plan. " Community Development Block Grant (CDBG) This fund is used to account for grants received from the United States Department of Housing and Urban Development (HUD) through Riverside County. The grants are used for the development of a viable community by providing decent housing, a suitable living environment,, and expanding economic opportunities, principally for persons of low and moderate income. AB 2766 - This fund is used to account for the City's share of revenues received under AB 2766 to be used to reduce air pollution from motor vehicles pursuant to the California Clean Air Act of 1988. AB 3229 COPS - This fund is used to account for the revenues and law enforcement expenditures of the AB 3229 COPS grant. Measure "A" - This fund is used to account for the City's share of the County of Riverside's additional ''/2% sales tax allocation which is restricted for use on local streets and roads. Development Impact - This fund is used to account for the proceeds of developmental impact fees restricted for capital improvement projects. -79- CITY OF TEMECULA COMBINING BALANCE SHEET OTHER SPECIAL REVENUE FUNDS June 30, 2007 ASSETS Cash and investments Interest receivable Intergovernmental receivable TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: -.Deposits Due to other funds TOTAL LIABILITIES FUND BALANCES: Unreserved TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES Gas State Tax Transportation CDBG $ 25,889 $ 6,755 $ 4,168 66 164,883 - 26,883 $ 191,940 $ 6,821 $ 26,883 26,883 - - 26,883 191,940 6,821 191,940 6,821 $ 191,940 $ 6,821 26,883 -80- Total Other Special. - AB 3229 Measure- Development Revenue AB 2766 COPS "A" Impact Funds $ . 371,179 $ $ 5,358,321 7,701,368 $ 13,463,512 4,187 58,045 109,937 173,403 29,322 540,214 761,302 $ 404;688 $ $ 5,956,580 $ 7,811,305 $ 14,398,217 $ $ $ $ 57,659 57,659 404,688 5,956,580 7,753,646 404,688 5,956,580 7,753,646 $ 404,688 $ $ 5,956,580 $ 7,811,305 $ 57,659 26,883 84,542 14,313,675 14,313,675 $ 14,398,217 -81- CITY OF TEMECULA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER SPECIAL REVENUE FUNDS For the year ended June 30, 2007 REVENUES: Intergovernmental Investment income Charges for services TOTALREVENUES Current: General government Debt service: Principal retirement Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR Gas State Tax Transportation. CDBG. $ 1,739,488 $ 565,018 $ 112,023 5,351 21,486 - 1,744,839 586,504 112,023 63,337 63,337 1,744,839 586,504 48,686 (1,631,850) (994,819) (48,726) (1,631,850) (994,819) (48,726) 112,989 (408,315) (40) 78,951 415,136 40 $ 191,940 $ 6,821 -82- Total Other Special AB 3229 Measure Development Revenue AB 2766 COPS "A" Impact Funds $ 111,624 $ 182,809 $ 3,764,474 $ - $ 6,475,436 12,857 - 179,092 404,888 623,674 - 6,134,458 6,134,458 124,481 182,809 3,943,566 6,539,346 13,233,568 - - 63,337 494,211 494,211 71,018 71,018 565,229 628,566 124,481 182,809 3,378,337 6,539,346 12,605,002 (38,406) (184,483) (3,116,000) (9,395,421) (15,409,705) (38,406) (184,483) (3,116,000) (9,395,421) (15,409,705) 86,075 (1,674) 262,337 (2,856,075) (2,804,703) 318,613 1,674 5,694,243 10,609,721 17,118,378 $ 404,688 $ - $ 5,956,580 $ 7,753,646 $ 14,313,675 -83- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL GAS TAX SPECIAL REVENUE FUND For the year ended June 30, 2007 REVENUES: Intergovernmental Investment income TOTALREVENUES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with - Final Budget Budgeted Amounts Positive Original. Final Actual (Negative) $ 1,631,850 $ 1;631,850 $ 1,739,488 $ _ 107,638 . 5,351 5,351 1,631,850 1,631,850 1,744,839 112,989 (1,631,850) (1,631,850) (1,631,850) - (1,631,850) (1,631,850) (1,631,850) - - - 112,989 112,989 78,951- 78,951 78,951 $ 78,951 $ 78,951 $ 191,940 $ 112,989 -84- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL STATE TRANSPORTATION SPECIAL REVENUE FUND For the year ended June 30, 2007 REVENUES: Intergovernmental Investmentncome - - TOTALREVENUES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with - Final Budget. Budgeted Amounts Positive Original Final. Actual (Negative) $ 450,000 $ 565,000 $ 565,018 $ 18c 15,000, 21,486 6,486 450,000 580;000 586,504 6,504 (450,000) (995,136) (994,819) 317 (450,000) (995,136) (994,819) 317 - (415,136) (408,315) 6,821 415,136 415,136 415,136 - $ 415,136 $ - $ 6,821 $ 6,821 -85- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CDBG SPECIAL REVENUE FUND For the year ended June 30, 2007 Variance with Final Budget Budgeted Amounts Positive REVENUES: Original Final Actual (Negative) Intergovernmental $ 1,653,837 $ 1,653,837 $ 112,023 $ (1,541;814) TOTALREVENUES 1,653,837 1,653,837 112,023 (1,541,814) EXPENDITURES: Current: General government 73,837 73,837 63,337 10,500 TOTALEXPENDITuRES 73,837 73,837 63,337 10,500 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,580,000 1,580,000 48,686 (1,531,314) OTHER FINANCING USES: Transfers out (1,580,040) (1,580,040) (48,726) 1,531,314 TOTAL OTHER FINANCING USES (1,580,040) (1,580,040) (48,726) 1,531,314 NET CHANGE IN FUND BALANCE (40) (40) (40) FUND BALANCE AT BEGINNING OF YEAR 40 40 40 FUND BALANCE AT END OF YEAR $ - $ - $ - $ 86 CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AB 2756 SPECIAL REVENUE FUND For the year ended June 30, 2007 REVENUES: Intergovernmental Investment income TOTAL REVENUES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with Final Budget Budgeted Amounts - Positive Original - Final Actual (Negative) $ 96,000 $ 96,000 $ 111,624 $ 15,624 - - 12,857 12;857 96,000 96,000 124,481 28,481 (304,324) (304,324) (38,406) 265,918 (304,324) (304,324) (38,406) 265,918 (208,324) (208,324) 86,075 294,399 318,613 318,613 318,613 - $ 110,289 $ 110,289 $ 404,688 $ 294,399 -87- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL. AB 3229 COPS SPECIAL REVENUE FUND. For the year ended June 30;_ 2007 Variance writh Final Budget Budgeted Amounts Positive - - Original - Final Actual (Negative) REVENUES: Intergovernmental $ 100,000 $ 182,809 $ 182,809 $ TOTAL REVENUES 100;000 182,809 182,809 OTHER FINANCING USES: Transfers out (100,000) (184,483) (184,483) TOTAL OTHER FINANCING USES (100,000) (184,483) (184,483) NET CHANGE IN FUND BALANCE - (1,674) (1,674) FUND BALANCE AT BEGINNING OF YEAR 1,674 1,674 1,674 FUND BALANCE AT END OF YEAR $ 1,674 $ - $ - $ -88- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL MEASURE "A" SPECIAL REVENUE FUND For the year ended June 30, 2007 REVENUES: Intergovernmental Investment income - - TOTAL REVENUES EXPENDITURES: Debt service: Principal retirement . Interest and fiscal charges TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNPER) EXPENDITURES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with Final Budget, - Budgeted Amounts. - Positive Original. Final- Actual ..(Negative).. $ 3,739,000 $ 3,739,000 $ 3,764,474 $ 25,474; 120,000 179,092 59,092 3;739,000 3,859,000 3,943,566 84,566 494,211 494,211 - 72,389 71,018 1,371 - 566,600 565,229 1,371 3,739,000 3,292,400 3,378,337 85,937 (8,788,591) (7,433,065) (3,116,000) 4,317,065 (8,788,591) (7,433,065) (3,116,000) 4,317,065 . (5,049,591) (4,140,665) 262,337 4,403,002 5,694,243 5,694,243 5,694,243 - $ 644,652. $ 1,553,578 $ 5,956,580 $ 4,403,002 _gq_ CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL DEVELOPN=IMPACTSPECIAL REVENUE FUND For the year ended June 30, 2007 REVENUES: Investment income Charges for services TOTALREVENUES OTHER FINANCING USES: Transfers out TOTAL OTHER FINANCING USES NET CHANGE IN FUND BALANCE FUND BALANCE AT BEGINNING OF YEAR FUND BALANCE AT END OF YEAR Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) $ 350,000 $ 350,000 $ 404,888 $ 54,888 11,339,196 11,339,196 6,134,458 (5,204,738) 11,689,196 11,689,196 6,539,346 (5,149,850) (22,152,543) (22,152,543) (9,395,421) 12,757,122 (22,152,543) (22,1.52,543) (9,395,421) 12,757,122 (10,463,347) (10,463,347) (2,856,075) 7,607,272 10,609,721 10,609,721 10,609,721 $ 146,374 $ 146,374 $ 7,753,646 $ 7,607,272 90 OTHER DEBT SERVICE FUNDS Redevelopment Agency - This fund is used to account for the payment of interest and principal on outstanding tax allocation bonds and other debt of the Redevelopment Agency. Community Services District -This fund is used to account for the payment of interest and principal on outstanding certificates of participation. -91- -92- CITY OF TEMECULA COMBINING BALANCE SHEET OTHER DEBT SERVICE FUNDS June 30, 2007 ASSETS Cash and investments - Cash and :investments with fiscal. agents 'Interest receivable - - Taxes receivable TOTALASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Advances from other funds TOTALLJABRJTIES FUND BALANCES: Reserved: Debt service TOTAL FUND BALANCES TOTAL LIABIIJTIES AND FUND BALANCES - Total.. Community Other Redevelopment Services Debt Service Agency District Funds $ 2,161,868, $ 9,633 $ 2,171,501 246,769 756 247,525 29,097. 115 29,212 67,478 .67,478 $ 2,505,212 $ 10,504 $ 2,515,716 $ 1,784,552 $ $ 1,784,552 1,784,552 1,784,552 720,660 10,504 731;164 720,660 10,504 731,164 $ 2,505,212 $ 10,504 $ . 2,515,716 -93- CITY OF TEMECULA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER DEBT SERVICE FUNDS For the year ended June 30, 2007 REVENUES: Taxes Investment income TOTALREVENUES EXPENDITURES: Current: Community development Debt service: Principal retirement Interest and fiscal charges Cost of issuance Tax increment pass-throughs TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out Capital debt issued Bond discount TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR Total Community Other Redevelopment Services Debt Service Agency District Funds $ 12,506,938 $ - $ 12,506,938 88,875 1,024 89,899 12,595,813 1,024 12,596,837 119,791 119,791 415,000 250,000 665,000 1,649,139 249,050 1,898,189 421,009 - 421,009 8,778,831 - 8,778,831 11,383,770 499,050 11,882,820. 1,212,043 (498,026) 714,017 501,500 501,500 (2,600,000) - (2,600,000) 893,523 893,523 (222,191) (222,191) (1,928,668) 501,500 (1,427,168) (716;625) 3,474 (713,151) 1,437,285 7,030 1,444,315 $ 720,660 $ 10,504 $ 731,164 -94- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE -BUDGET AND ACTUAL REDEVELOPMENT AGENCY DEBT SERVICE FUND For the year ended Tune 30, 2007 REVENUES: Taxes Investment income TOTAL REVENUES EXPENDITURES: Current: Community development Debt service: Principal retirement Interest and fiscal charges Cost of issuance Tax increment pass-throughs TOTALEXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers out _ Capital debt issued Bond discount TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCE FUNDBALANCE AT BEGINNING OF YEAR . FUND BALANCE AT END OF YEAR Variance with Final Budget Budgeted Amounts - Positive Original Final Actual (Negative) $ 11,288,840 $ 12,506,973 $ 12,506;938 $ (35) 40,000 40,000 88,875 48,875 11,328,840 12,546,973 12,595,813 48,840 144,000 120,663 119,791 872 415,000 415,000 415,000 - 1,361,161 1,649,161 1,649,139 22 - 421,670 421,009 661 7,876,560 8,787,948 8,778,831 9,117 9,796,721 11,394,442 11,383,770 10,672 1,532,119 1,152,531 1,212,043 59,512 (2,800,000) (2,600,000) (2,600,000) 893,523 893,523 (222,191) (222,191) (2,800,000) (1,928,668) (1,928,668) (1,267,881) (776,137) (716,625) 59,512 1,437,285 1,437,285 1,437,285 $ 169,404 $ 661,148 $ 720,660 $ 59,512 -95- CITY OF TEMECULA SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL CONDAUNIPY SERVICES DISTRICT DEBT SERVICE FUND For the year ended June 30, 2007 Variance with Final Budget - Budgeted Amounts . - - Positive Original.. Final Actual (Negative) REVENUES:. - ` Investment income 1;024 $ -1,024 TOTAL REVENUES 1,024 1,024 EXPENDITURES: Debt service: Principal retirement 250,000 250;000 250,000 - Interest and fiscal charges 252,000 252,000 249,050 2,950 TOTAL EXPENDITURES 502,000 502,000 499,050 2,950 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (502,000) (502,000) (498,026) 3,974 OTHER FINANCING SOURCES: Transfers in 501,500 501,500 501,500 TOTAL OTHER FINANCING SOURCES 501,500 501,500 501,500 - NET CHANGE IN FUND BALANCE (500) (500) 3,474 .3,974 FUND BALANCE AT BEGINNING OF YEAR 7,030 7,030 7,030 - FUND BALANCE AT END OF YEAR $ 6,530 $ 6,530 $ 10,504 $ 3,974 -96- OTHER CAPITAL PROTECTS FUNDS Communi Facilities District #88-12 - This fund is used to account for bond proceeds which were used for the construction of Ynez Road and the Overland Overcrossing capital improvement project. Harveston Community Facilities District #01-2 -This fund is used to account for bond proceeds which were used for capital improvements of the Harveston Community Facilities District #01-2. Harveston Community Facilities District #01-2 A& B -This fund is used to account for bond proceeds which were used for capital improvements of the Harveston Community Facilities District #01-2 A & B. Crowne Hill Community Facilities District #03-1 - This fund is used to account for bond proceeds which were used for capital improvements in Crowne Hill Community Facilities District #03-1. Iohn Warner Road Assessment District #03-4 - This fund is used to account for bond proceeds which were used for capital improvements in John Warner Road Community Facilities District #034. Harveston Community Facilities District #03-6 - This fund is used to account for bond proceeds which were used for capital improvements of the Harveston Community Facilities District #03-6. Wolf Creek Community Facilities District #03-3 This fund is used to account for bond proceeds which were used for capital improvements in Wolf Creek Community Facilities District No. 03-3. -97- CTTY OF TEMECULA COMBINING BALANCE SHEET OTHER CAPITAL PROJECTS FUNDS June 30, 2007 ASSETS Cash and investments Cash and investments with fiscal agent Interest receivable. TOTAL ASSETS LIABHITIES AND FUND BALANCES LIABILITIES. TOTAL LIABILITIES FUND BALANCES: Unreserved: Undesignated TOTAL FUND BALANCES TOTAL LIABILITIES AND FUND BALANCES Harveston Harveston Community Community Community Facilities Facilities Facilities District #88-12 District #01-2 District #01-2A & B $ - $ $ 247,812 917 $ $ $ 248,729 248,729 248,729 $ $ $ 248,729 -98- Crown Hill Harveston Total. Community . John Warner Road Community Other Facilities . Assessment Facilities Wolf Creek Capital Projects District 03-1 District #03-4 District #03-6 CFD #03-3 Finds -g.. - $ - $ $ $ 247,812 4,998,138. - - 478,339 12,443,464 17,919,941 64,874 - 14,041 162,343 242,175 5,063,012. $ - $ 492,380 $ 12,605,807 $ 18,409,928 5,063,012 - 492,380 12,605,807 18,409,928 5,063,012, - 492;380 12,605,807 18,409,928 5,063,012 $ $ 492,380 $ 12,605,807 $ 18,409,928 -99- CITY OF TEMECULA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - OTHER CAPITAL PROJECTS FUNDS For the year ended June 30, 2007 REVENUES: Investment income Other TOTALREVENUES EXPENDITURES: Capital outlay TOTAL EXPENDITURES EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in - Transfers out TOTAL OTHER FINANCING SOURCES (USES) NET CHANGE IN FUND BALANCES FUND BALANCES AT BEGINNING OF YEAR FUND BALANCES AT END OF YEAR Harveston Harveston. Community Community community Facilities. Facilities Facilities District #88-12 District #01-2 District #01-2A &B $ 7,271 $ 23,139 $ 90,460 7,271 23,139 , 90,460 90,115 13,064 2,798,079 90,115 13,064 2,798,079 (82,844) 10,075 (2,707,619) 2,956,348 (2,956,348) - (2;956,348) 2,956,348 (82,844) (2,946,273) 248,729 82,844 2,946,273 - $ _ $ _ $ 248,729 - 100 - Crown Ml Harveston Total Community - John Warner Road Community Other. Facilities Assessment Facilities Wolf Creek Capital Projects District #03-1 District #03-4 District #03-6. CFD#03-3 Funds - $ 273,482 $ 116 $ 82,710 $ 806,154 $ 1,283,332 2,694 - 3,710 - 6,404 - - 276,176 116 86;420 806,154 1,289,736 - - 1,375,634. 5,755,695 10,032;587 - - 1,375,634 5,755,695 10,032,587 - - - 276,176 116 (1,289,214) (4,949,541) (8,742,851) - - - - 2,956,348 (1,198,737) (72,235) - (992,789) (5,220,109) (1,198,737) .(72;235) (992,789) .(2,263,761) (922,561) (72,119) (1,289,214) (5,942,330) (11,006,612) 5,985,573 72,119 1,781,594 18,548,137 29,416,540 - $ 5,063,012 $ - $ 492,380 $ 12,605,807 $ 18,409,928 - 101 102 INTERNAL SERVICE FUNDS Internal service funds are used to account for the financing, of goods or services provided by one department to other departments of the City on a cost reimbursement basis. insurance - This fund is used to finance and account for the City's risk management and insurance programs: Vehicles - This fund is used to account for the replacement of the City's vehicles. Information Systems - Thi fund is used to account for the cost of providing electronic data processing equipment and software and central telephone services. .Sunnort Services - This fund is used to account for the cost of providing central mailing and reprographic services. Facilities This fund is used to account for the cost of City Hall and City Maintenance Facility operations and maintenance. -103- CITY OF TEMECULA COMBINING STATEMENT OF NET ASSETS INTERNAL SERVICE FUNDS June 30, 2007 Insurance Vehicles ASSETS CURRENT ASSETS: Cash and investments Interest receivable Accounts receivable Prepaid items TOTAL CURRENT ASSETS NONCURRENT ASSETS: Capital Assets: Equipment Less: accumulated depreciation TOTAL NONCURRENT ASSETS TOTAL ASSETS LIABILITIES AND NET ASSETS CURRENT LIABILITIES: Accounts payable Accrued liabilities Deposits Compensated absences payable Capital lease payable Claims payable TOTAL CURRENT LIABILITIES LONG-TERM LIABILITIES: Capital lease payable - Claims payable TOTAL LONG-TERM LIA13 1TIES TOTAL LIABILITIES NET ASSETS: Invested in capital assets, net of related debt Unrestricted TOTALNET ASSETS $ 1,410,571 $ 488;538 14,698 5,256 295,721 1,720;990 493,794 3,332,115 (1,864;586) 1,467,529 1,720,990 1,961,323 2,389 2,291 - 191 10,000 8,958 I 19,238 42,876 191 405,314 - 405,314 - 448,190 191 - 1,467,529 1,272,800 493,603 $ 1,272,800 $ 1,961,132 -104- - Information Support .Systems - Services Facilities Totals 1,036,337 $ 340,545 $ 213,268 $ 3,489,259 7,937 2,920 1,095 31,906 7,572 1,552 9,124 - 295,721 1;051,846 343,465 215,915 3,826,010 1,932,234 526,694 5,791,043 (1,525,620) (370,497) (3,760,703) 406,614 156,197 2,030,340 1,458,460 499,662 215,915 5,856,350 54,444 27,576 35,116 119,525 36,145 7,186 9,841 55,654 - - - 10,000 111,238 8,807 27,261 156,264 - 28,611 - 28,611 - - - 19,238 201,827 72,180 72,218 389,292 158,826 158,826 - 405,314 - 158,826 - 564,140 201,827 231,006 72,218 953,432 406,614 156,197 - 2,030 340 850,019 112,459 143,697 2,872,578 $ 1,256,633 $ 268,656 $ 143,697 $ 4,902,918 -105- CITY OF TEM ECULA COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS - INTERNAL SERVICE FUNDS For the year ended June 30, 2007 Insurance Vehicles OPERATING REVENUES: Charges for services $ 589,630 $ 326,250 Other" 925 8 TOTAL OPERATING REVENUES 590,555 326,258 OPERATING EXPENSES: Operations and.maintenance 555,928 - " -General and administrative- _ 52,130 - Depreciation 313,024 TOTAL OPERATING EXPENSES 608,058 313,024 OPERATING INCOME (LOSS) (17,503) 13,234 NONOPERATING REVENUES (EXPENSES): Interest. income 54,067 21,212 Interest expense Gain (loss) on disposal of capital assets 16,160 TOTAL NONOPERATING REVENUES (EXPENSES) 54,067 37,372 CHANGE IN NET ASSETS 36,564 50,606 TOTAL NET ASSETS AT BEGINNING OF YEAR 1,236,236 1,910,526 TOTAL NET ASSETS AT END OF YEAR $ 1,272,800 $ 1,961,132 -106- - Information Support - Systems. Services. Facilities"... Totals - $ 2,250,323 $ 329,470 $ 644,747 $ 4,140,420 58 991 . 2,250,381 329,470 644,747 4,141;411 798,456 101,618 264;081 1,720,083 1,257,918 144,635 386,966 1,841,649 177,926 50,037 - 540,987 2,234,300 296,290 651,047 4,102,719 16,081 33,180 (6,300) 38,692 27,427 9,617 3,773 116,096 (11,516) (11,516) (5,547) 8,792 19,405 21,880 6,893 3,773 123,985 37,961 40,073 (2,527) 162,677 1,218,672 228,583 146,224 4,740,241 $ 1,256,633 $ 268,656 $ 143,697 $ 4,902,918 -107- CITY OF TEMECULA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS For the year ended June 30, 2007 CASH FLOWS FROM OPERATING ACTIVI'T'IES: Receipts from customers Payment to suppliers Payment to employees NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets Proceeds from sale of capital assets Principal payments on capital lease obligation Interest payments on capital lease obligation NET CASH USED BY CAPITAL AND RELATED FINANCING ACTIVITIES CASH FLOWS FROM INVESTING ACTIVITIES: Investment interest received NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Depreciation Change in assets and liabilities: (Increase) decrease in accounts and notes receivable - (Increase) decrease in prepaid items Increase (decrease) in accounts payable Increase (decrease) in compensated absences Increase (decrease) in accrued liabilities Increase (decrease) in claims payable NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Insurance Vehicles $ 590,555 $ 326,258 (647,315) - (52,130) (108,890) 320,258 (543,350), 16,160 (527,190) 51,808 22,133 (57,082) (178,799) 1,467,653 667,337 $ 1,410,571 $ 488,538 $ (17,503) 13,234 313,024 (53,615) (4,837) 1,367 - (34,302) $ (108,890) $ 326,258 NONCASH ITEMS: Noncash items included acquisition of capital assets in the amount of $142,539 financed through a lease purchase contract. -108- Information Support Systems Services Facilities Totals 1 2,250,381, $ 329,470 $ 644,747 $ 4;141,411 (747,042)- (90,659) (244,907) (1,729,923) (1,257,918) (144,635) (386,967) (1,841,650) 245,421 94,176 12,873 569,838 (308,207) 8,792 (36,108) (11,516) (851,557) 24,952 (36,108) - (11,516) (308,207) (38,832) (874;229) 27,205 8,881 3,733 113,760 (35,581) 64,225 16,606 (190,631) 1,071,918 276,320 196,662 3,679,890 $ 1,036,337 $ 340,545 $ 213,268 $ 3,489,259 $ 16,081 $ 33,180 $ (6,300) $ 38,692 177,926 50,037 - 540,987 (6,610) 924 (300) (5,986) - - - (53,615) 18,377 8,320 8,473 30,333 33,702 8,807 6,210 48,719 5,945 (7,092) 4,790 5,010 - - - (34,302) $ 245,421 $ 94,176 $ 12,873 $ 569,838 -109- -uo_ AGENCY FUNDS Agency funds are used to account for assets held by the City, as an agent for individuals, private organizations and other governments. Community Facilities Districts - This fund is used toaccount for monies held by the City, collected by special taxes to service debt issued by the districts. - 111 - CITY OF TEMECUI. A STATEME14T OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES AGENCY FUND For the year ended June 30, 2007 Balance Balance July 1, 2006 Additions Deletions June 30, 2007, ASSETS. Cash and investments $ 1,804,751 $ 593,374 $ - $ 2,398,125 Cash and investments with fiscal agent 15,724,205 - (943,673) 14,780,532 Taxes receivable 108,773 454,686 563,459 Interest receivable 55,889 138 - 56,027- TOTALASSETS $ 17,693,618 $ 1,048,198 $ (943,673) $ 17,798,143 LIABIC ' 7ES: Accrued liabilities $ - $ 6,080 $ - $ 6,080 Due to bondholders 17,693,618 98,445 - 17,792,063 TOTAL LIABILITIES $ 17,693,618 $ 104,525 $ - $ 17,798,143 -112- DESCRIPTION OF STATISTICAL SECTION CONTENTS June 30, 2007 This part of the City of Temecula's comprehensive annual financial report presents detailed information as a context for understanding what the information in the -financial statements, note disclosures, and required supplementary information say about the government's overall financial health. Contents: Locator Map Financial Trends theses schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity these schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity these schedules present information to help the reader assess the -affordability of the City's current levels of outstanding debt and the City's ability to issue additional debt in the future. Demographic and Economic Information these schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information these schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Pages 115 116-123 124 - 128 129 - 134 135- 136 137-141 -113 - (THIS PAGE INTENTIONALLY LEFT BLAND - 114 - CITY OF TEMECULA, CALIFORNIA LOCATOR MAP TEMECULA AND SOUTHERN CALIFORNIA REGION Source: City of Temecula - GIS Department • I_os M9eles 80 Min. 115 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Net Assets by Component Last Five Fiscal Years (accrual basis of accounting) FISCAL YEAR 2003 2004 2005 2006 2007 Governmental activities: Invested in capital assets, net of related debt $ 347,079,901 $ 374,473,165 $ 419,663,336 $ 479,842,533 $ 526,541,448 Restricted 30,827,362 51,908,979 51,617,275 90,146,086 89,542,605 Unrestricted 58,154,859 61,175,911 65,282,787 67,273,331 80,433,986 Total government net assets $ 436,062,122 $ 487,558,055 $ 536,563,398 $ 637,261,950 $ 696,518,039 The City of Temecula implemented GASB 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. 116 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Changes in Net Assets Last Five Fiscal Years (accrual basis of amounting) Expenses: Governmental activities: General government Public safety Public works Community services Community development Interest on long term debt Total governmental activities expenses Program Revenues: Governmental activities: Charges for services Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Net revenues (expenses): General revenues and other changes in net assets: Governmental activities: Taxes: Sales taxes Property taxes Other taxes Contributions, not restricted to specific purposes Unrestricted investment earnings Miscellaneous Transfers Total governmental activities FISCAL YEAR 2003 2004 2005 2006 2007 $ 10,467,457 $ 10,533,697 $ 13,361,733 $ 16,652,124 $ 15,502,875 5,785,987 16,391,452 17,725,984 19,933,791 22,196,822 16,623,171 14,634,619 14,303,321 16,702,789 20,666,677 11,069,094 12,262,108 13,469,846 16,098,127 18,992,957 21,229,997 19,357,162 19,739,726 30,628,142 32,389,210 1,828 551 1,843,768 1,826,142 1,813,290 2,311,241 67,004,257 75,022,806 80,426,752 101,828,263 112,059,782 18,673,001 46,971,261 28,410,353 34,490,046 34,287,081 8,112,599 3,425,519 3,792,646 4,829,167 4,923,439 6,034,169 7,047,230 22,333 348 64,851,453 24,995,756 32,819,769 59,444,010 54,536,347 104,170,666 64,206 276 (34 184,488) (15,578,796) (25,890,405) 2,342,403 (47,853,506) 21,572,199 25,392,314 27,802,830 30,649,032 30,069,312 13,638,626 14,957,314 16,522,177 26,854,910 28,149,257 9,471,638 10,892,610 11,515,934 6,151,468 8,090,565 6,265,168 13,930,043 16,304,211 31,415,884 35,769,595 876,967 275,588 1,575,590 2,040,463 4,197,019 1,506,052 786,672 1,175,006 1,244,392 833,847 840,186 53,330 650 67,074,729 74,895,748 98,356,149 107,109,595 Changes in net assets 19,146,162 $ 51495,933 $ 49,005,343 $ 100,698552 _L _S 256,089 The City of Temecula implemented GASS 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. Source: City of Temecula Finance Department 117 CITY OF TEMECULA, CALIFORNIA Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) General Fund: Reserved Unreserved Total general fund All other governmental funds: Reserved Unreserved, reported in: Special revenue funds Capital projects funds Total all other governmental funds FISCAL YEAR 2003 2004 2005 2006 (as restated) 2007 $ 3,750,217 $ 4,149,359 $ 3,759,073 $ 2,673,686 $ 2,998,053 22,960,702 22,407,861 27,942,122 35,3161108 40,934,281 $ 26,710,919 $ 26,557,220 $ 31,701,195 $ 37,989,794 $ 43,932,334 $ 24,007,917 $ 26,672,240 $ 29,005,837 $ 35,316,108 $ 32,741,964 16,322,993 20,552,488 19,790,028 19,096,740 16,343,213 20,742,529 36,973,954 32,639264 66,024,597 88,582,057 $ 61,073,439 $ 84,198,682 $ 81,435,629 $ 120,437,445 $ 137,667,234 The City of Temecula has elected to show only five years of data for this schedule. 118 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Changes in Fund Balances of Governmental Funds Last Five Fiscal Years (modified accrual basis of accounting) Revenues: Taxes Licenses and permits Intergovernmental Charges for services Fine and forfeitures Investment income Contributions from property owners other Total revenues Expenditures: Current: General governement Public safety Public works Community development Community services Capital outlay Debt service: Principal retirement Interest and fiscal charges Passthroughs Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in Transfers out Capital debt issued Bond discount Sales of property Total other financing sources (uses) Net change in fund balances Debt service as a percentage of noncapital expenditures 3.45% 2.99% 2.48% 2.32% 2.74% The City of Temecula has elected to show only five years of data for this schedule. Source: City of Temecula Finance Department FISCAL YEAR 2003 2004 2005 2006 2007 $ 40,064,779 $ 45,712,545 $ 48,305,857 $ 63,497,706 $ 64,313,342 3,969,113 4,491,787 4,786,930 5,486,534 5,884,122 8,741,717 8,408,999 12,371,649 12,150,394 17,523,592 16,153,887 22,033,804 21,470,707 28,715,011 28,126,584 818,661 1,161,511 1,156,891 1,259,194 1,307,174 2,010,270 1,189,086 2,958,239 4,281,982 9,076,097 5,150,000 27,199,401 3,825,457 46,965,547 - 2,128,217 1,590,608 17,380,465 8,424,030 9,122,586 79,036,644 111,787,741 112,256,195 170,780,398 135,353,497 10,046,970 11,200,092 13,181,259 16,220,837 15,207,010 13,614,872 16,234,799 17,716,631 19,745,813 21,950,928 5,609,746 6,544,834 6,033,610 7,660,252 8,602,982 8,795,223 12,699,522 11,332,992 16,431,974 10,460,887 10,464,386 11,445,162 12,506,028 15,185,649 17,788,867 9,486,308 22,090,334 38,000,805 42,614,653 46,765,045 694,887 752,355 791,585 1,116,135 1,159,211 1,513,977 1,843,464 1,828,177 1,814,687 2,390,216 5,978,382 6,479,524 6,981,873 8,661,255 8,778,831 66,204,751 89,290,086 108,372,960 129,451,255 133,103,977 12,831,893 22,497,655 3,883,235 41,329,143 2,249,520 10,473,977 18,740,173 22,218,755 28,502,739 30,848,306 (10,552,977) (17,972,251) (22,218,755) (28,502,739) (30,848,306) 21,145,000 - - - - (222,191) 228,309 95,431 - - - 149,309 863,353 - - 20,922,809 $ 12,981,202 $ 23,361,008 $ 3,883,235 $ 41,329,143 $ 23,172,329 119 CITY OF TEMECULA, CALIFORNIA GOVERNMENT-WIDE REVENUES LAST TEN FISCAL YEARS (1) Pr ram Revenues General Revenues Fiscal Year Charges for Services Operating Grants and Contributions Capital Grants and Contributions axes Contributions Not Restricted to Specific Purpose Unrestricted Investment Earnings iscellaneous otal 2003 $ 18,673,001 $ 8,112,599 $ 6,034,169 $ 44,682,463 $ 6,265,168 $ 876,967 $ 1,506,052 $ 86,150,419 2004 48,971,261 3,425,519 8,549,543 51,242,238 13,930,043 275,588 1,626,860 128,021,052 2005 410,353 28 3,792,646 22,333,348 55,840,941 16,304,211 1,575,590 1,175,006 129,432,095 2006 , 33,313,276 4,829,167 64,851,453 65,197,310 31,605,736 2,040,463 689,410 202,526,815 2007 34,287,081 4,923,439 24,995,756 66,309,134 35,769,595 4,197,019 833,847 171,315,871 (1) The City of Tem ecula implemented GASB 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. 120 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Government-wide Expenses by Program Last Ten Fiscal Years (1) Interest General Public Public Community Community on Long Term Fiscal Year Government Safetv Works Services Development Debt Total 2003 $ 10,467,457 $ 5,785,987 $ 16,623,171 $ 11,069,064 $ 20,840,533 $ 1,828,551 $ 66,614,763 2004 10,533,697 16,391,452 14,634,619 19,357,162 12,262,108 1,843,768 75,022,806 2005 13,361,733 17,725,984 14,303,321 13,469,846 19,739,726 1,826,142 80,426,752 2006 16,652,124 19,933,791 16,702,789 16,098,127 28,174,213 1,813,290 99,374,334 2007 15,502,875 22,196,822 20,666,677 18,992,957 32,389,210 2,311,241 112,059,782 (1) The City of Temecula implem ented GASB 34 for the fiscal year ended June 30, 2003. Information prior to the implementation of GASB 34 is not available. 121 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA General Governmental Revenues by Source Last Ten Fiscal Years Fiscal Licenses and Intergovern- Year Taxes Permits mental 1998 $ 20,269,039 $ 2,526,425 $ 4,862,075 $ 1999 22,109,500 3,272,194 7,559,858 2000 27,411,887 3,418,465 11,045,122 2001 32,789,666 3,605,034 7,504,046 2002 36,694,852 3,689,537 9,254,875 2003 40,064,779 3,969,113 8,741,717 2004 45,712,545 4,491,787 8,408,999 2005 48,305,857 4,786,930 12,371,649 2006 63,497,706 5,486,534 12,150,394 2007 64,313,342 5,884,122 17,523,592 $180,000,000 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $30,000,000 $0 Charges for Fines and Use of Money and Services Forfeitures Pro e 9,693,633 $ 156,591 $ 3,228,037 $ 13,189,792 408,300 4,513,508 14,408,815 423,140 2,698,614 12,437,598 458,199 3,210,811 13,894,895 567,586 2,240,770 16,153,887 818,661 7,160,270 22,033,804 1,161,511 23,388,487 21,470,707 1,156,891 20,338,704 28, 715, 011 1,259,194 12, 706, 012 28,126,584 1,307,174 9,076,097 Other Total 4,380,899 $ 45,116,699 471,903 51,525,055 721,325 60,127,368 1,402,736 61,408,090 1,720,841 68,063,356 2,128,217 79,036,644 1,590,608 111,787,741 3,825,457 112, 256,195 46,965,547 170,780,398 9,122, 586 135, 353,497 ❑ Other • Use of Money and Property ■ Fines and FOrfCltul'CS 0 Charges for Services ■ Intergovernmental ❑ Licenses and Permits I ■ Taws 122 Source: City of Temecula Finance Department 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 CITY OF TEMECULA, CALIFORNIA General Governmental Expenditures by Function Last Ten Fiscal Years Fiscal General Community Community Year Government Public Safe Public Works Development Services Capital Outlav Debt Service Total 1998 $ 3,943,034 $ 6,448,231 $ 2,378,356 $ 9,182,275 $ 6,151,541 $ 10,476,296 $ 2,505,117 $ 41,084,850 1999 4,753,015 7,335,705 2,419,627 9,758,485 6,499,294 27,443,502 2,591,190 60,800,818 2000 5,817,503 8,690,741 3,807,780 10,196,997 7,165,782 22,304,437 2,698,382 60,681,622 2001 7,190,463 8,847,592 4,195,189 11,811,545 7,888,862 13,603,379 2,833,215 56,370,245 2002 8,569,455 11,076,480 4,884,288 18,326,681 9,435,192 13,102,912 3,749,974 69,144,982 2003 10,046,970 13,614,872 5,609,746 14,773,605 10,464,386 9,486,308 2,208,804 66,204,691 2004 11,200,092 16,234,799 6,544,834 19,179,046 11,445,162 22,090,334 2,595,819 89,290,086 2005 13,181,259 17,716,631 6,033,610 *18,314,865 12,506,028 38,000,805 2,619,762 108,372,960 2006 16,220,837 19,745,813 7,660,252 *25,093,229 15,185,649 42,614,653 2,930,822 129,451,255 2007 15,207,010 21,950,928 8,602,982 *19,239,718 17,788,867 46,765,045 3,549,427 133,103,977 $140,000,000 $120,000,000 $100.000.000 $W0o0.000 $60.000,000 $40,000.000 $20,000,000 $o ❑ Debt Service ® Capital Outlay ■ Community Services 0 Community Develop► ■ Public Works 0 Public Safety ■ General Government Includes general, transportation and parks maintenance special revenue and debt service funds *Includes Pass-through 123 Source: City of Temecula Finance Department 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 CITY OF TEMECULA, CALIFORNIA Property Tax Rates (per $100 assessed valuation) Direct and Overlapping Governments Last Ten Fiscal Years FISCAL YEAR ENDED JUNE 30 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Basic County, City and School Levy 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 110000 1.0000 Overlapping Rates: Various Water Districts 0.1121 0.1121 0.0895 0.075 0.0611 0.0668 0.0482 0.033 0.033 0.099 School District 0.3399 0.3399 0.3397 0.3267 0.3237 0.3200 0.3700 0.349 0.3162 0.248 Total 1.4520 1.4520 1.4292 1.4017 1.3848 1.3868 1.4182 1.3820 1.3492 1.3475 Source: City of Temecula Finance Department 124 CITY OF TEMECULA, CALIFORNIA PRINCIPAL SECURED PROPERTY OWNERS Last Ten Fiscal Years (Value in thousands) TAXPAYER 1998 1999 2000 2001 2002 Advanced Cardiovascular System, Inc. $ 78,001 $ 77,276 $ 102,168 $ 102,168 $ 132,236 International Rectifier Corporation 174,031 153,283 143,188 143,188 140,136 Temecula Towne Center Associates 73,044 73,044 74,505 Wolf Creek Maintenance Corporation Radnor Landgrant Rancho Cal 47,263 Woodside Wolf Creek Inc. Lakha Alderwood Properties GMS Realty 41,999 38,027 38,027 38,788 Hudson Respiratory Care, Inc. 25,663 29,122 34,982 34,982 35,796 Kimco Palm Plaza 31,286 26,011 32,997 32,997 39,382 Arden Realty Limited Partnership 11,568 26,632 26,632 Knickerbocker Properties Inc. XX 23,365 23,365 23,833 John W. Hoffee 11 Trust 19,098 21,803 21,803 Harveston, LLC Starwood Wasserman Temecula 21,752 21,752 24,556 STCA AEW LBA Acquisition 19,679 Palomar Village Property 14,356 LGA 7, Inc. 14,080 BWIP International 13,833 California Acacia Limited Partnership 16,295 16,621 Dayton Hudson Corporation 16,585 CTF 6 Vintage View LLC 14,365 Solana Ridge Redhawk Towne Center Inland Western Temecula Common Costco Wholesale Corporation 22,606 Wolf Creek Development MV Housing Partners III Bascom 42200 Moraga Rd. Apartments MS Temecula II Portofino Development 28,500 Top Ten Totals $ 434,487 $ 405,928 $ 517,958 $ 517,958 $ 560,338 Total Assessed Valuation $ 3,279,750 $ 3,445,913 $ 3,827,394 $ 4,563,253 $ 5,201,010 125 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA PRINCIPAL SECURED PROPERTY OWNERS (Continued) Last Ten Fiscal Years (Value in thousands) TAXPAYER 2003 2004 2005 2006 2007 Advanced Cardiovascular System, Inc. International Rectifier Corporation Temecula Towne Center Associates Wolf Creek Maintenance Corporation Radnor Landgrant Rancho Cal Woodside Wolf Creek Inc. Lakha Alderwood Properties GMS Realty Hudson Respiratory Care, Inc. Kimco Palm Plaza Arden Realty Limited Partnership Knickerbocker Properties Inc. XX John W. Hoffee II Trust Harveston, LLC Starwood Wasserman Temecula STCA AEW LBA Acquisition Palomar Village Property LGA 7, Inc. BWIP International California Acacia Limited Partnership Dayton Hudson Corporation CTF 6 Vintage View LLC Solana Ridge Redhawk Towne Center Inland Western Temecula Common Costco Wholesale Corporation Wolf Creek Development MV Housing Partners III Bascom 42200 Moraga Rd. Apartments MS Temecula II Portofino Development $ 145,662 $ 147,768 $ 152,155 $ 170,647 $ 175,216 135,603 120,271 128,471 113,487 109,180 73,318 96,484 98,285 94,312 96,198 85,001 - - 70,069 36,736 47,500 48,450 49,419 39,564 28,559 40,170 40,972 41,738 42,573 43,424 42,080 29,304 28,577 29,148 29,692 28,697 29,233 26,776 27,264 25,544 37,508 38,258 35,088 52,567 - 34,098 - 33,571 32,251 - 24,548 29,070 29,651 30,428 31,049 - Top Ten Totals $ 587,151 $ 585,807 $ 610,310 $ 690,366 $ 702,000 Total Assessed Valuation $ 6,201,896 $ 6,931,696 $ 7,795,288 $ 10,328,097 $ 11,836,051 126 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Property Tax Levies and Collections Last Ten Fiscal Years Collected within the Fiscal Year of the Levy Total Collections to Date Fiscal Year Taxes Levied for Percentage Collections in Percentage Ended June 30, the Fiscal Year Amount of Levy Subsequent Years Amount of Levy 1998 $ 1,233,340 $ 1,206,174 97 .80% $ 50,768 $ 1,206,174 97.80% 1999 L297,037 1,290,459 99 .49% 53,390 1,290,459 99.49% 2000 1,468,721 1,460,204 99 A2% 51,566 1,511,770 102.93% 2001 1,893,848 1,810,665 95 .61% 75,686 1,886,351 99.60% 2002 2,145,106 2,193,463 102 .25% 99,460 2,292,923 106.89% 2003 2,483,384 2,489,032 100. 23% 105,076 2,594,107 104.46% 2004 2,923,196 2,824,269 96. 62% 109,537 2,933,806 100.36% 2005 3,317,949 3,193,730 96. 260/. 120,996 3,314,726 99.90% 2006 4,579,225 4,349,076 94. 97% 251,045 4.600,121 100.46% 2007 5,334,622 4,751,074 89. 06% 475,692 5,226,766 97.98% Note: Since the fiscal year ended June 30, 1994, the City of Temecula has received its property tax revenues in accordance with the Teeter Plan. Under the Teeter Plan, the City is paid in full each year for the actual amount of property taxes levied, regardless of the amount of delinquencies. As delinquent property taxes are collected, they are kept by the County including any penalties and interest. After 1994, any differences between the total tax levy and total collections are due to tax roll adjustments made during the year. Source: Riverside County Auditor-Controller City of Temecula, Finance Department 127 CITY OF TEMECULA, CALIFORNIA Assessed and Estimated Actual Value of Taxable Property (values in thousands) Last Ten Fiscal Years Exemptions Total Secured Veteran Net Assessed Exemptions Net Total Estimated Fiscal Year and Unsecured Church, etc. Value Homeowners Assessed Value Actual Value 1998 $ 3,279,750 $ (24,100) $ 3,255,651 $ (56,665) $ 3,198,986 $ 3,198,986 1999 3,445,913 (24,216) 3,421,696 (60,119) 3,361,578 3,361,578 2000 3,827,394 (25,597) 3,801,797 (61,464) 3,740,333 3,740,333 2001 4,563,253 (29,666) 4,533,587 (64,372) 4,469,215 4,469,215 2002 5,201,010 (33,360) 5,167,650 (68,938) 5,098,712 5,098,712 2003 6,201,896 (30,010) 6,171,886 (82,926) 6,088,960 6,088,960 2004 6,931,291 (43,142) 6,888,149 (92,362) 6,795,787 6,795,787 2005 7,794,688 (53,240) 7,741,448 (94,237) 7,647,211 7,647,211 2006 10,328,097 (51,063) 10,277,034 (108,654) 10,168,380 10,168,380 2007 11,836,051 (75,481) 11,760,969 (111,392) 11,649,577 11,649,577 Source: Riverside County Assessor's Office 128 CITY OF TEMECULA, CALIFORNIA Ratio of Outstanding Debt by Type Last Ten Fiscal Years General Fiscal Year Ended Obligation Certificates of Tax Allocation June 30 Bonds Participation Bonds 1998 $ - $ 4,560,000 $ 14,550,000 1999 - 4,370,000 13,895,000 2000 - 4,170,000 13,205,000 2001 - 3,960,000 12,480,000 2002 - 6,465,000 28,055,000 2003 - 6,185,000 28,055,000 2004 - 5,960,000 27,960,000 2005 5,730,000 27,850,000 2006 - 5,490,000 27,445,000 2007 - 5,240,000 48,175,000 Notes payable Total Governmental Activities Percentage of Personal Family Income Debt per Capita $ 4,775,664 $ 23,885,664 0.24% 513 4,424,983 22,689,983 0.25% 465 4,056,569 21,431,569 0.28% 398 3,674,532 20,114,532 0.30% 300 (1) 3,276,952 37,796,952 0.17% 520 2,862,065 37,102,065 0.18% 495 2,429,710 36,349,710 0.18% 469 1,978,125 35,558,125 0.19% 391 1,506,990 34,441,990 n/a 367 1,012,779 54,427,779 n/a 556 Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements. (1) The RDA issued over $28,055,000 in new tax allocation bonds and $6,465,000 in Certificates of Participation in 2002. 129 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Ratio of General Bonded Debt Last Ten Fiscal Years General Percent of Fiscal Year Ended Obligation Certificates of Tax Allocation Assessed Value June 30 Bonds Participation Bonds Total (1) 1998 $ - $ 4,560,000 $ 14,550,000 $ 19,110,000 0.60% 1999 - 4,370,000 13,895,000 18,265,000 0.54% 2000 - 4,170,000 13,205,000 17,375,000 0.46% 2001 - 3,960,000 12,480,000 16,440,000 0.37% 2002 - 6,465,000 28,055,000 34,520,000 0.68% 2003 - 6,185,000 28,055,000 34,240,000 0.56% 2004 - 5,960,000 27,960,000 33,920,000 0.50% 2005 - 5,730,000 27,850,000 33,580,000 0.44% 2006 - 5,490,000 27,445,000 32,935,000 0.32% 2007 - 5,240,000 48,175,000 53,415,000 0.53% (1) Assessed value has been used because the actual value of taxable property is not readily available in the State of California. Per Capita $ 410 374 323 245 475 456 438 370 351 569 130 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Schedule of Direct and Overlapping Debt 200607 Assessed Valuation: 511,829,175,650 Redevelopment Incremental Valuation: 1,442 405 435 Adjusted Assessed Valuation: $1.O S-6 177O_215 'Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEB T: 6/30/07 % Applicable (I Debt 6/30/07 Metropolitan Water District $359,115,000 0.639% 5 2,294,745 F-astem Municipal Water District, J.D. No. U-8 6,717,000 84.903 5,702,935 Temecula Valley Unified School District 43,790,000 68.206 29,867,407 Rancho California Water District, Rancho Division 3,575,000 76.556 2,736,877 Rancho California Water District, Santa Rosa Division 4,505,000 5.237 235,927 Rancho California Water District Community Facilities District No. 88-3 4,145,000 100. 4,145,000 City of Temecula Special Tax Obligations 1,240,000 100. 5,240,000 Eastern Municipal Water District Community Facilities District No. 2002-04 840,000 100. 840,000 Eastern Municipal Water District Community Facilities District No. 2002-08 4,985,000 100. 4,985,000 Eastern Municipal Water District Community Facilities District No. 2005-38, I.A. 6 890,000 100. 890,000 'Temecula Community Facilities District No. 88-12 12,330,000 100, 12,330,000 'Temecula Public Financing Authority Communily Facilities District No. 01-2 17,545,000 100. 17,545,000 Temecula Public Financing Authority Community Facilities District No. 03-1 15,435,000 100. 15,435,000 Temecula Public Financing Authority Community Facilities District No. 03-2 51,250,000 100. 51,250,000 Temecula Public Financing Authority Community Facilities District No. 03-3 29,980,000 100. 29,980,000 Temecula Public Financing Authority Community Facilities District No. 03-6 4,760,000 100. 4,760,000 Temecula Valley Unified School District Community Facilities District No. 2002-1, I.A. No. 1 7,305,000 57.435 4,195,627 Temecula Valley Unified School District Community Facilities District No. 2002-2 12,930,000 100. 12,930,000 Temecula Valley Unified School District Community Facilities District No. 2004-1, ]A. A 12,700,000 100. 12,700,000 Temecula Valley Unified School District Community Facilities District No. 2005-1 9,945,000 21.484 2,136,584 County 1915 Act Bonds (Estimated) 46,007,006 Variou 25,929,548 City of Temecula 1915 Act Bonds 1,025,000 100. 1,025 000 TOTAL DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $297 154 650 OVERLAPPING GENERAL FUND DEBT: Riverside County General Fond Obligations $643,021,333 6.898% 544,355,612 Riverside County Pension Obligations 392,890,000 6.898 27,101,552 Riverside County Board of Education Certificates of Participation 10,275,000 6.898 708,770 Mt. San Jacinto Community College District General Fund Obligations 7,310,000 17.245 1,260,610 Rancho California Water District General Fund Obl igations 112,487,356 58.785 66,125,692 TOTAL GROSS OVERLAPPING GENERAL FUND DEBT 5139,552,236 Less: Riverside County self-supporting obligations 1,281,749 Rancho California Water District General Fund Obligations (77.78% self-supporting) 51,437,563 TOTAL NET' OVERLAPPING GENERAL FUND DEBT S A6837924 GROSS COMBINED TOTAL DEBT- $386,706,886 (2) NET COMBINED 'TOTAL DEBT 5333,992,574 (1) Percentage ofoveriapping agency's assessed valuation located within boundaries oflhe city. (2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. Ratios to 2006-07 Assessed Valuation: - Direct Debt (55,240,000) ..............................................................................0.04% Total Direct and Overlapping Tax and Assessment Debt......_ 2.09% Ratios to Adiusted Assessed Valuation: Gross Combined -1"oral Debt. ..................................................................._..3.72% Net Combined Total Debt _____........_..........._.........._.._.....3.22% STATE SCHOOL BUILDING AID REPAYABLE AS OF 6130106: SO KD:($425) SOURCE: City ofTemccula Finance Department and Calnrmni Statistics, Inc. 131 CITY OF TEMECULA, CALIFORNIA Legal Debt Margin Last Ten Fiscal Years Net Assessed Value Plus exempt property Total Assessed Value Debt Limit - 15% of total assessed value Amount of debt applicable to debt limit Total bonded debt Less assets in Debt Service Funds available for payment of principal Total amount of debt applicable to debt limit Legal Debt Margin Source: City of Temecula Finance Department FISCAL YEAR ENDED JUNE 30 1998 1999 2000 2001 2002 $ 3,198,986 3,361,532 3,752,627 4,533,587 5,167,650 56,665 60,119 61,464 64,372 68,938 $ 3,255,651 3,421,651 3,814,091 4,597,959 5,236,588 $ 488,348 513,248 572,114 689,694 785,488 $ 488,348 513,248 572,114 689,694 785,488 132 CITY OF TEMECULA, CALIFORNIA Legal Debt Margin (continued) Last Ten Fiscal Years Net Assessed Value Plus exempt property Total Assessed Value Debt Limit -15% of total assessed value Amount of debt applicable to debt limit Total bonded debt Less assets in Debt Service Funds available for payment of principal Total amount of debt applicable to debt limit Legal Debt Margin FISCAL YEAR ENDED JUNE 30 2003 2004 2005 2006 2007 6,171,886 6,888,149 7,741,448 10,277,034 11,760,969 82,926 92,362 94,237 108,654 111,392 6,254,812 6,980,511 7,835,685 10,385,688 11,872,361 938,222 1,047,077 1,175,353 1,557,853 1,780,854 938,222 1,047,077 1,175,353 1,557,853 1,780,854 133 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Pledged Revenue Coverage Last Ten Fiscal Years Fiscal Year Ended June 30 Tax Increment Principal Interest Coverage 1998 $ 6,037,201 $ 620,000 $ 834,159 4.15 1999 5,699,506 655,000 869,669 3.74 2000 7,075,097 690,000 942,442 4.33 2001 9,300,499 725,000 1,045,705 5.25 2002 10,626,552 765,000 755,072 6.99 2003 10,949,850 - 1,077,920 10.16 2004 11,896,579 95,000 1,440,939 7.75 2005 12,663,850 110,000 1,451,440 8.11 2006 15,458,291 405,000 1,466,116 8.26 2007 15,492,144 415,000 1,649,139 7.51 Tax Allocation Bonds $ 14,550,000 13,895,000 13,205,000 12,480,000 28,055,000 28,055,000 27,960,000 27,850,000 27,445,000 48,175,000 134 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Demographic and Economic Statistics Last Ten Calendar Years Personal Family Calendar Year Population (1) Income (2) Per Capita Personal Family Unemployment Income Rate (3) 1998 46,564 $ 56,946 81.77% 4.20% 1999 48,828 56,946 85.74% 3.40% 2000 53,791 60,212 89.34% 3.60% 2001 67,000 60,212 111.27% 4.10% 2002 72,715 64,400 112.91% n/a 2003 75,010 66,270 113.19% 4.00% 2004 77,460 66,270 116.89% 5.90% 2005 90,872 68,051 133.54% 5.90% 2006 93,923 n/a n/a n/a 2007 97,935 85,914 113.99% n/a (1) State Department of Finance (2) Husing Reports and Claritas, Inc. (3) State of California, Employment Development Department n/a = not available Source: City of Temecula Finance Department 135 CITY OF TEMECULA, CALIFORNIA LARGEST EMPLOYERS BY NUMBER OF EMPLOYEE'. Current Year and Ten Years Ago NAME OF EMPLOYER 2007 1997 Percent o Percent o NUMBEROF Total NUMBEROF Total EMPLOYEES Employment EMPLOYEES Employment Abbott Laboratories f/k/a Guidant Corporation 4,798 9.32% 1,156 5.65% Temecula Valley Unified School District 2,828 5.49% 1,128 5151% Professional Hospital Supply 1,235 2.40% 378 1.85% International Rectifier 605 1.17% 743 3.63% Milgard Manufacturing 420 0.82% - 0.00% Norm Reeves Auto Group 369 0.72% 147 0.72% Costco Wholesale Corporation 352 0.68% 169 0.83% Channell Commercial Corporation 300 0.58% 184 0.90% Chem!-Con International 350 0.68% - 0.00% Sears 249 0,48% - 0.00% Albertson's 45 0.09% - 0.00% Plant Equipment, Inc. 294 0.57% 156 0.76% Macy's 230 0.45% - 0100% Temecula Creek Inn 230 0.45% - 0.00% JC Penney Company 195 0.38% - 0.00% City of Temecula 210 0.41% 171 0.84% Dayton Hudson Corporation/Target 200 0.39% 161 0.79% Home Depot 125 0.24% - 0.00% Opto 22, Inc. 200 0.39% 208 1.02% Toyota of Temecula Valley 185 0.360% - 0.00% FFF Enterprises Inc. 179 0,35% - 0.00% Claim Jumper 140 0.27% 125 0.61% Rancho Ford Lincoln Mercury 165 0.32% - 0.00% Southwest Traders 257 0.50% - 0100% The Scotts Company 160 0.31% - 0.00% McMillan Farm Management 115 0.22% - 0100% Lowe's 150 0.29% - 0.00% Stater Brothers 150 0.29% - 0.00% Rancho California Water District 130 0.25% 124 0.61% Bianchi International 120 0.23% - 0.00% Magnecomp Corporation 130 0.25% - 0.00% Mervyns 136 0.26% 120 0.59% TGI Friday's 80 0.160% - 0.00% K-Mart Corporation 100 0.19% 125 0.61% Pat & Oscars 80 0.16% - 0.00% Sierra Pacific Farms, Inc. 71 0.14% 180 0.880% Diversified Temporary Services - 0.00% 413 2.02% Hudson Respiratory Care, Inc. - 0.00% 350 1.71% Tension Envelope - 0.00% 310 1.51% CJ Resorts, Inc. - 0.00% 205 1.00% BW/IP International, Inc. - 0.00% 200 0.98% Lucky Stores - 0.00% 153 0.75% Eco-Farms Field, Inc. - 0.00% 148 0.72% Capitstrano Gardens Nursery - 0.00% 148 0.72% American Material Management Alliance - 0.00% 139 0.68% Coco's Bakery Restauarnt - 0.00% 100 0.49% Souce: California Employment Development Department and City of Temecula 136 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Operating Indicators by Function Last Four Fiscal Years Function Police: Total Citations Red Light Runners DUI arrests Traffic Collisions Fire: Number of emergency calls Inspections Public works: Miles of City streets slurry sealed Parks and recreation: Number of recreation classes Number of parks Fiscal Year 2003-04 2004-05 2005-06 2006-07 13,255 11,370 14,633 25,237 2,296 3,525 4,745 3,194 212 214 178 353 n/a 570 731 838 4,745 4,902 5,228 5,895 3,335 3,786 3,261 5,714 18 18 18 18 500 500 700 800 30 31 36 37 Source: City of Temecula - Departments Note: 10 Years of information is not available, the City will be adding data until ten years worth is presented here. Source: City of Temecula Finance Department 137 CITY OF TEMECULA, CALIFORNIA Full-time City Employees Last Ten Fiscal Years Full-time City Employees by Function Function 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 City Council 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 City Manager 7.50 9.50 9.00 9.00 9.00 9.00 9.00 9.00 9.00 10.00 City Clerk 6.00 6.00 6.00 6.00 6.00 8.00 7.00 7.00 7.00 8.00 Finance 10.00 10.00 11.00 11.50 11.50 13.50 14.00 14.00 14.00 15.50 Community Development Planning 11.50 12.00 13.00 18.00 19.00 24.00 22.00 22.00 23.00 24.00 Building and Safety 11.00 11.00 16.00 16.00 16.00 16.00 19.00 20.00 21.00 21.00 Land Development 9.90 9.90 9.85 11.18 11.18 11.18 15.68 15.68 15.68 15.38 Public Works 20.60 20.60 26.40 27.57 30.82 34.32 37.82 38.82 44.32 48.62 - - - - - 1.00 1.00 1.00 Police - - - - - - 1 00 1.00 2.00 2.00 3.00 Fire Community Services - 18.65 18.65 21.90 22.90 26.90 . 27.90 28.05 29.05 33.05 35.90 Redevelopment Agency 4.50 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Internal Service Funds 5.85 5.85 6.35 8.60 8.85 10.85 13.20 14.20 15.20 18.35 110.50 111.50 127.50 138.75 147.25 163.75 174.75 180.75 193.25 208.75 138 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Capital Asset Statistics by Function Last Four Fiscal Years FISCAL YEAR Function 2003-04 2004-05 2005-06 2006-07 Police: Stations 1 1 1 1 Store fronts 3 3 3 3 Fire: Stations 4 4 5 5 Public works: Miles of streets 334 334 339.5 339.5 Traffic signals 56 63 96 96 Parks and recreation: Number of parks 30 31 36 37 Source: City of Temecula - Departments Note: 10 Years of information is not available, the City will be adding data until ten years worth is presented here. 139 Source: City of Temecula Finance Department COMPARATIVE CITY INFORMATION FY2007-08 OPERATING BUDGET - SELECTED DATA 140 Source: City of Temecula Finance Department CITY OF TEMECULA, CALIFORNIA Demographics and Miscellaneous Statistics June 30, 2007 Incorporation date Form of government Number of authorized City employees (full-time equivalent) Number of registered voters Personal family income Area in square miles Altitude Rainfall Location Miles of streets Park sites Park acreage (total) Park acreage (developed) Education: Libraries (contracted with Riverside County): Fire protection (contracted with Riverside County): Police protection (contracted with Riverside County): Year Population* 1-Dec-89 Council/Manager 210.75 36,022 $85,244 30.15 square miles 1000-1200 Feet 19.52 inches per year 55 mi. N of San Diego; 85 mi. SE of Los Angeles 339 miles 37 383 230 Number of schools 32 Number of teachers 1,450 Number of students enrolled 27,962 Number of libraries 2 Number of volumes 95,565 Number of stations 5 Number of firefighters 73 Number of volunteer firefighters 30 Number of stations 3 Number of sworn officers 101 Supervision / Management 18 Public School Enrollment** Unemployment*** 1997 43,110 13,542 4.70% 1998 46,564 14,658 4.20% 1999 48,828 15,722 3.40% 2000 53,791 17,704 3.60% 2001 67,000 19,029 4.10% 2002 72,715 20,265 N/A 2003 75,010 21,789 4.00% 2004 77,460 23,494 5.90% 2005 90,872 25,600 5.90% 2006 97,935 27,962 N/A SOURCE: City of Temecula *State of California, Department of Finance **Temecula Valley Unified School District ***State of California, Employment Development Department N/A - Information Not Available 141 Source: City of Temecula Finance Department ITEM NO. 6 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: January 08, 2008 SUBJECT: Community Development Block Grant Application Proposals for FY 2008-09 PREPARED BY: Gus Papagolos, Fiscal Services Manager RECOMMENDATION: That the City Council Approve the Community Development Block Grant (CDBG) Finance Committee funding recommendations for fiscal year 2008/09. 2. Authorize the Mayor to execute the fiscal year 2006/07 Amendment to Supplemental Agreement for the Use of Community Block Grant Funds for the Temecula Community Pantry in the amount of $150,000. 3. Authorize the City Manager to reprogram CDBG funds in accordance with the current budget resolution for general administration, and to reprogram CDBG funds from the Old Town Gymnasium project to the Temecula Community Center Expansion project in the amount of $758,311, and to the Temecula Community Pantry project (Escallier house and barn rehab) in the amount of $400,000. BACKGROUND: The CDBG program is a federal grant program administered by the Department of Housing and Urban Development (HUD) in which funding is allocated to the City annually through the Economic Development Agency of Riverside County (EDA). The application requests were reviewed for eligibility for CDBG funding by our program representative at the EDA and all of the applications are eligible for funding. In order for a project to be considered for funding, it must meet one of the following national goals: The activity benefits 51 percent low/moderate income persons; or, 2. The activity aids in the prevention or elimination of slums or blight; or, 3. The activity meets an emergent community development need. A total of ten CDBG funding applications were submitted to the City for consideration and all were determined to be eligible for CDBG funding. The City's allocation for fiscal year 2008/09 is anticipated to be $428,317. CDBG regulations impose a 15% cap from the total allocation for Public Services. The Finance Committee is recommending a total expenditure of $64,247 for Public Services, and for Public Facilities/Infrastructure. Please refer to the following table: FY 2008/09 CDBG ALLOCATION FUNDING CATEGORY FUNDING ALLOCATION Public Services 15% ca $ 64,247 Project Funding available for Public Facilities/Infrastructure 364,070 Estimated CDBG Allocation for fiscal year 2008/09 $428,317 Due to the possibility that the City's allocation may be reduced, it is recommended that all projects be reduced equally, according to the percentage in allocation reduction. All projects are subject to final approval at a future Riverside County Board of Supervisors meeting. The EDA will submit a supplemental agreement to the City identifying the projects approved forfunding in July 2008. Also, for general information, fiscal year 2008/09 CDBG funding cycle begins the second year of a three- year cooperation agreement with the EDA. At the term of this agreement, the City will review the benefits for application of entitlement status with HUD. The Finance Committee, composed of Council Members Mike Naggar and Maryann Edwards, met on October 23, 2007. On December 11, 2007, after thorough review, the Finance Committee proposed CDBG funding for eight public service organizations and one City capital project, as described in the attachment. In addition, a reprogramming of CDBG funds is necessaryto complete previously approved projects, Temecula Community Center Expansion project and the Temecula Community Pantry project. The total costforthe Temecula Community Center Expansion project is $2,148,000 as perthe fiscal year 2007/08 CIP. This project will add 3,653 square feet of space adjacent to the existing center and will accommodate additional human services that are provided by the non-profit organization, Safe Alternatives to Domestic Violence. It is necessary to reprogram $758,311 of CDBG funds from the Old Town Gymnasium project to the Temecula Community Center Expansion project in orderto meet the total project funding requirements. In addition to the CDBG funding, Quimby funding of $400,000 is also allocated for this project. The fiscal year 2006/07 Amendment to Supplemental Agreement for the Use of Community Block Grant Funds for the Temecula Community Pantry, as approved by the City Council in January 2007, will allocate $150,000 to the project. I n order to meet the total cost of $550,000 of the project, it is necessary to reprogram $400,000 from the Old Town Gymnasium project to the Temecula Community Pantry project. The project will include the relocating of the house and barn adjacent to the Temecula Community Center. The Escallier house is approximately 1200 square feet and the barn contains an additional 800 square feet. The rehabbing of the Escallier house and barn will provide both office space, service space and with the rehab of the barn, needed storage space will be developed. Upon completion of the project, the non-profit organization, Temecula Community Pantry will occupy the facility and provide much needed emergency food aid services to the Temecula area. The relocation of the house and barn is planned for March 2008 following the completion of the site preparation. The Old Town Gymnasium project is presently contracted for design. However, the timing of the Old Town Gymnasium project has been adversely affected by Murrieta Creek Flood Control and Water Conservation District eminent domain action. Essentially, the Flood Control District needed City land (a portion of the Gym location) to perform public improvements consisting of flood control channel improvements. The City has been in recent contact with the Flood Control District to determine the amount of land that will be returned to the City and the time frame. Once this information is confirmed, the complete design of the Old Town Gymnasium will proceed. Following the reprogramming of CDBG funds to the Temecula Community Center Expansion and the Temecula Community Pantry project, the available CDBG funding balance for the Old Town Gymnasium project will be $655,011. It is anticipated that CDBG funds in the amount of $380,000 per year for fiscal years 2009/10 and 2010111 will be applied to the Old Town Gymnasium project which will be combined with community contributions to fully fund this project. FISCAL IMPACT: The CDBG funds allocated to outside agencies have no impact on the City other than staff time needed to administer program requirements. ATTACHMENTS: -Finance Committee Funding Recommendations FY 2008/09 -FY 2008/09 CDBG Applications Funding Summary -Amendment to Supplemental Agreement for the Use of Community Block Grant Funds (Project Name: Temecula Community Pantry) FINANCE COMMITTEE FUNDING RECOMMENDATIONS - FY 2008109 PUBLIC SERVICES FY FY 2007108 2008109 Funding Funding Award Request Finance Committee Funding Recommendations Outreach Program Services - $ 0 $75,230 $ 0 Alternatives to Domestic Violence (ADV) Operation School Bell - 2,810 10,000 8,000 Assistance League of Temecula Valley The Learning Center - Boys & Girls Club of Southwest County 9,370 30,000 8,000 Court Appointed Special Advocates 4,680 0 0 Riverside Area Rape Crisis Center (Rape Prevention 4,602 5,000 5,000 Education Family Support Program - 11,245 15,000 15,000 Safe Alternatives For Everyone, Inc. Temecula Emergency Assistance Program - Senior 9 370 10 000 10 000 Citizen Service Center of Temecula Rancho Area , , , VNW - Circle of Care Program 9,370 11,500 10,000 YMCA Day and Swim Camp - 7 820 10 000 8 247 Southwest Family YMCA , , , 211 Call Center - 0 5 000 0 Volunteer Center of Riverside County , Total Public Services $ $1ZIJ-3 64.247 = ~ °~a can FY 2007108 FY 2008109 Finance Committee Funding Funding Funding PUBLIC FACILITIES/INFRASTRUCTURE Award Request Recommendations Temecula Community Center Expansion $364,070 $364,070 $364,070 Total Public Facilitiesll GRAND TOTAL ~ $423,Ul ~ $535,800 T- 142aIJI City of Temecula FY 2008109 CDBG Applications Funding Summary PROJECT AGENCY FUNDING QUALIFYING PROJECT SUMMARY REQUEST CRITERIA Alternatives to Provide 24-hour crisis intervention, Outreach Program Domestic $75,230 Public Service/ advocacy services, shelter, Services Violence (ADV) Limited Clientele community education and the ' Children s Support Program. Assistance Public Service/ Provide children identified by Operation School Bell League of $10,000 Low-Moderate TVUSD who are in need of Temecula Valley Income clothing, school supplies, and toiletries. The Learning Boys & Girls Club Public Service/ Scholarship program for low- of Southwest $30,000 Low-Moderate income families to participate in Connection County Income before and after school care. Riverside Area Rape Riverside Area Public Service/ This program provides assistance Crisis Center Rape Crisis $5,000 Low-Moderate to victims of sexual assault in the (Rape Prevention Center Income Temecula area at Rancho Springs Education) Medical Center. Safe Alternatives Public Service Provide services for children, youth Family Support for Everyone, Inc. $15,000 Low-Moderate and families who have experienced Program (SAFE) Income or are at risk of abuse and violence. Senior Citizen Provide emergency food Temecula Emergency Service Center of Public Service/ distribution and limited utility Assistance Program Temecula $10'000 Limited Clientele assistance to households based on referrals from Social Services and Rancho Area local churches. Public Provide emergency food VNW-Circle of Care VNW-Circle of Service/Low- distribution and resource center Program Care Inc. $11'500 Moderate assistance (clothing and household , Income items) based on referrals and a walk-in basis. Public This program will provide YMCA Day and Swim Southwest Family $10 000 Service/Law- scholarships to day camp for under Camp YMCA ' Moderate privileged children at Temecula Income Elementary School. Volunteer Center Public Service/ County Wide 211 call center that 211 Call Center of Riverside $5,000 Low-Moderate provides information and social County Income services program referrals. Subtotal Public $171.M Services City of Temecula FY 2008/09 CDBG Applications Funding Summary PROJECT AGENCY FUNDING QUALIFYING PROJECT SUMMARY REQUEST CRITERIA Temecula Expansion of 3,653 square feet to Temecula Community Community $364,070 Public Facility the Temecula Community Center to Center Expansion Services District accommodate additional human services programs. Subtotal Facility/ Infrastructure TOTAL FUNDING REQUESTED f I 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 File No. 3.TM151 AMENDMENT TO SUPPLEMENTAL AGREEMENT FOR THE USE OF COMMUNITY BLOCK GRANT FUNDS THIS AMENDMENT to the Supplemental Agreement made and entered this day of 2007 by and between the COUNTY OF RIVERSIDE, State of California, hereinafter referred to as "COUNTY", and the CITY OF TEMECULA, hereinafter referred to as "CITY". WITNESSETH: WHEREAS, the parties hereto are the parties to a certain Cooperation Agreement dated July 12, 2005, where as the City elected to participate with COUNTY, under the terms of which certain Community Development Block Grant funds were allocated to said CITY and designated for a specific use. Said Cooperation Agreement dated July 12, 2005, is incorporated herein by reference and made a part of this Amendment as if each and every provision was set forth herein; and WHEREAS, the parties desire to amend said Supplemental Agreement dated December 14, 2006, as hereinafter set forth, to reflect addition of a new project: Temecula Community Pantry, $150,000. NOW, THEREFORE, in consideration of the promises and the mutual covenants and conditions hereinafter set forth, said Supplemental Agreement dated December 14, 2006, in accordance with Paragraph 22, is hereby amended as follows: 1. Paragraph 2 is hereby amended by adding Exhibit M: 3.TM151 Temecula Community Pantry, $150,000; 2. Paragraph 3 is hereby amended by extending the term of the agreement to December 31, 2008 and adding Exhibit M; 3. Paragraph 4 is hereby amended by adding Exhibit M; 4. Paragraphs 8 (a) and 8 (e) are hereby amended by adding Exhibit M Page 1 of 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Except to the extent specifically modified or amended hereunder all of the terms, covenants and conditions of said Supplemental Agreement dated December 14, 2006, shall remain in full force and effect between the parties hereto. IN WITNESS WHEREOF, the parties hereto have caused this Amendment to Sponsor's Agreement to be duly executed this day and year first above written. DATED: COUNTY OF RIVERSIDE T2..• Deputy Director CITY OF TEMECULA By: Page 2 of 2 EXHIBIT M Page 1 of 6 CDBG SUPPLEMENTAL AGREEMENT SCOPE OF WORK (NON-PUBLIC SERVICE) I. GENERAL INFORMATION CITY NAME: --City of Temecula ADDRESS: 43200 Business Park Dr. Temecula, CA 92590 PROGRAM CONTACTS: Gus Papagolos, Fiscal Services Manager PHONE: (951) 694-6430 FAX: E-MAIL: PROJECT NAME: Temecula Carnmunty Pantry, 3 TM1 51 PROJECT LOCATION: 28816 Pujol Street. Temecula CA LEVEL OF ENVIRONMENTAL CLEARANCE: Categorical Exclusion CDBG ELIGIBILITY CODE: 24 CFR 570.201 (c) Public Facility PROJECT FUNDING SUMMARY: 1 ST District $ 0 4th District $ 0 2"d District $0 5th District $0 3`d District $0 City Funding $150,000 Project to be administered by County (EDA) on behalf of City: YES ❑ NO II. SCOPE OF SERVICE A. Activities City will be responsible for administering a 2006-2007 Community Development Block Grant for the Temecula Community Pantry in a manner satisfactory to the County of Riverside and consistent with any standards required as a condition of providing these funds. Such program will include the following activities eligible under the Community Development Block Grant program: Activity #1 The City of Temecula will use CDBG funds to pay for the renovation and upgrading of the Temecula Community Pantry located at 28816 Pujol Street. The facility comprises approximately 2,000 square feet of space (Escallier House and Barn). The Community Pantry provides food and clothing distribution, homeless EXHIBIT M Page 2 of 6 services, and limited intake and referral services. Once completed, the Pantry will serve 500 persons per year. B. National Objective All activities funded with CDBG funds must comply with one of more of the CDBG program's National Objective Criteria as required under 24 CFR 570.200(a)(2). City certifies that the activity carried out under this Agreement will meet the following National Objective: National Objective Criteria: Low Moderate Income Limited Clientele Certification CFR Reference: 570.208(a)(2)(i)(A) C. Levels of Accomplishment - Goals and Performance Measures The City agrees to implement and complete the following activity: Activity #1 Renovation and upgrades to the Temecula Community Pantry CPD OUTCOME PERFORMANCE MEASUREMENT Objectives (select one): D Creating Suitable Living Environments ❑ Providing Decent Affordable Housing ❑ Creating Economic Opportunities Outcome (select one): ❑ Availability/Accessibility ❑ Affordability 0 Sustainability (promoting livable or viable communities) D. City Capacity By executing this Supplemental Agreement, the City certifies that it has the appropriate number of trained and knowledgeable staff, adequate facilities, proper equipment, required licensing and permitting, and sufficient amount of financial resources necessary to implement and carry out the activities funded with CDBG funds. City will immediately notify County of any significant changes in organizational management, assigned staff, change in facilities, loss or change in matching funds, or any other event that could potentially impact the City's performance under this Agreement. Any changes in the above items are subject to the prior approval of the County. E. Performance Monitoring The County of Riverside will monitor the performance of the City and its subrecipients against goals and performance standards as stated above. Substandard performance as determined by the County will constitute noncompliance with this Agreement. If action to correct such substandard EXHIBIT M Page 3 of 6 performance is not taken by the City within a reasonable period of time after being notified by the County, contract suspension or termination procedures will be initiated. F. Program Budget It is expressly agreed and understood that the total amount to be paid by the County under this Agreement shall not exceed $150,000. Drawdowns for the payment of eligible expenses shall be made against the line item budgets specified in this Section and in accordance with performance. Payments may be contingent upon certification of the Subrecipient's financial management system in accordance with the standards specified in 24 CFR 84.21. The County may require a more detailed budget breakdown than the one contained herein, and the City shall provide such supplementary budget information in a timely fashion in the form and content prescribed by the County. Any amendments to the budget must be approved in writing by both the County and City. Line Item Amount: Design/Engineering Costs Project Administration Costs Construction Costs $150,000 Acquisition Costs Relocation Costs Capital Equipment Costs Other TOTAL CDBG BUDGET $150.000 III. ADMINISTRATIVE REQUIREMENTS A. Accounting Standards The City agrees to comply with 24 CFR 84 or 85 as applicable and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred. EXHIBIT M B. Cost Principles Page 4 of 6 The City shall administer its program in conformance with OMB Circulars A-122, "Cost Principles for Non-Profit Organizations," A-21, "Cost Principles for Educational Institutions," or OMB Circular A-87, "Cost Principles for State, Local and Indian Tribal Governments as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis C. Documentation and Record Keeping 1. Records to be Maintained The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to: i Records providing a full description of each activity undertaken; ii. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program; iii. Records required to determine the eligibility of activities; iv. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance; V. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program; vi. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21-28; and vii. Other records necessary to document compliance with Subpart K of 24 CFR Part 570. 2. Records Retention The City shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the County's annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time. Notwithstanding the above, if there is litigation, claims, audits, negotiations or other actions that involve any of the records cited and that have started before the expiration of the five-year period, then such records must be retained until completion of the actions and resolution of all issues, or the expiration of the five- year period, whichever occurs later. EXHIBIT M Page 5 of 6 3. Client Data The City shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client name, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to County monitors or their designees for review upon request. 4. Disclosure The City understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the County's or City's responsibilities with respect to services provided under this contract, is prohibited by applicable federal and State law unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian. Close-outs The City's obligation to the County shall not end until all close-out requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the County), and determining the custodianship of records. Not withstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the City has control over CDBG funds, including program income. 6. Audits & Inspections All City records with respect to any matters covered by this Agreement shall be made available to the County, HUD, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the City within 30 days after receipt by the City. Failure of the City to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The City hereby agrees to have an annual agency audit conducted in accordance with current County policy concerning subrecipient audits and OMB Circular A-133. 1 EXHIBIT M Page 6 of 6 IV. PROJECT IMPLEMENTATION AND SCHEDULE Unless pre-approved by County, City will perform and complete the activities described in Section II in conformance with the schedule of tasks and milestones listed below: Tasks / Milestone Start Date Completion Date Implement Project Activities Execute Amended 2006-07 Supplemental Agreement & Notice to Incur Cost Submit Quarterly Performance Reports to County County Monitoring of City Program/Performance City Submits Reimbursement Requests Monthly Submittal ❑ Other Schedule 0 CDBG-funded Project Complete V. SPECIAL CONDITIONS /PERFORMANCE REQUIREMENTS June 2008 City will submit necessary documentation for EDA for the review and approval of construction/bidding documents. City must collect income self-certifications from every family participating in activities at the Temecula Community Pantry for a period of five (5) years from the program year that the project is completed. The self-certifications include family income, family size, and ethnicity. The City is required to collect income verification documentation from at least 10% of the participants. All of this documentation must be submitted to EDA on a monthly basis. Upon Notification from EDA November 2007 December 15, 2007 TBD December 2007 July 31, 2008 Ongoing ITEM NO. 7 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: January 08, 2008 SUBJECT: Completion and Acceptance for the Architectural Enhancement Panels on the southerly side of the Overland Drive Bridge over Interstate 15 - Project No. PW05-09 PREPARED BY: Greg Butler, Deputy Director of Public Works - CIP William Becerra, Assistant Engineer RECOMMENDATION: That the City Council: Accept the construction of the Architectural Enhancement Panels on Southerly Side Overland Drive Bridge Over Interstate 15 - Project No. PW05-09, as complete and; 2. Direct the City Clerk to file and record the Notice of Completion, release the Performance Bond, and accept a one (1) year Maintenance Bond in the amount of 10% of the contract amount; and 3. Release the Materials and Labor Bond seven (7) months after filing of the Notice of Completion, if no liens have been filed. BACKGROUND: On May 8, 2007, the City Council awarded a $168,281.80 construction contract to Premier Fabrication & Welding, Inc. dba Howe Welding & Fabrication for Architectural Enhancement Panels on Southerly Side Overland Drive Bridge Over Interstate 15 - Project No. PW05-09. The final design was reviewed and approved by the Infrastructure Beautification Committee on October 23, 2007. The project included fabrication and installation of 300 linear feet of architectural enhancement panels onto the existing bridge fencing. The fencing on the south edge of the bridge now depicts rolling hills with sporadic clouds and balloon silhouettes; the center panel includes the sun shining down onto the word "Temecula". The contractor has completed the work in accordance with the approved plans and specifications and to the satisfaction of the Director of Public Works. The final contract amount is $170,998.43, which includes one change order for $2,716.63. The construction retention for this project will be released on or about 35 days after the Notice of Completion has been recorded. FISCAL IMPACT: The Architectural Enhancement Panels on southerly side Overland Drive Bridge Over I nterstate 15 - Project No. PW05-09 was funded by Development Impact Fees - Public Art. With one change order for $2,716.63 issued, the final construction contract amount was $170,998.43. ATTACHMENTS: 1. Contractor's Affidavit and Final Release 2. Maintenance Bond 3. Notice of Completion CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT CONTRACTOR'S AFFIDAVIT AND FINAL RELEASE PROJECT NO. PW05-09 ARCHITECTURAL ENHANCEMENT PANELS ON SOUTHERLY SIDE OVERLAND DRIVE BRIDGE OVER INTERSTATE 15 This is to certify that Premier Fabrication & Welding, Inc, dba Howe Welding & Fabrication, (hereinafter the "CONTRACTOR") declares to the City of Temecula, under oath, that he/she/it has paid in full for all materials, supplies, labor, services, tools, equipment, and all other bills contracted for by the CONTRACTOR or by any of the CONTRACTOR's agents, employees or subcontractors used or in contribution to the execution of it's contract with the City of Temecula, with regard to the building, erection, construction, or repair of that certain work of improvement known as PROJECT NO. PW05-09, ARCHITECTURAL ENHANCEMENT PANELS ON SOUTHERLY SIDE OVERLAND DRIVE BRIDGE OVER INTERSTATE 15, situated in the City of Temecula, State of California, more particularly described as follows; Overland Drive Bridge over Interstate 15, Temecula CA The CONTRACTOR declares that it knows of no unpaid debts or claims arising out of said Contract which would constitute grounds for any third party to claim a Stop Notice against any of unpaid sums owing to the CONTRACTOR. Further, in connection with the final payment of the Contract, the CONTRACTOR hereby disputes the following amounts: Description Dollar Amount to Dispute 11'ursuant to Public Contract Code §7100, the CONTRACTOR does hereby fully release and acquit the City of Temecula and all agents and employees of the City, and each of there, from any and all claims, debts, demands, or cause of action which exist or might exist in favor of the CONTRACTOR by reason of payment by the City of "Temecula of any contract amount which the CONTRACTOR has not disputed above. Contractor: Dated: Icy: Bond #4361495 Premium: Included in Performance Bond CITY OF TEMECULA, PUBLIC WORKS DEPARTMENT MAINTENANCE BOND FOR PROJECT NO. PW05-09 ARCHITECTURAL ENHANCEMENT PANELS ON SOUTHERLY SIDE OVERLAND DRIVE BRIDGE OVER INTERSTATE IS KNOW ALL PERSONS BY THESE PRESENT THAT: Premier Fabrication & V ,ation, 41218 Nick Lane, Murrieta, CA 92562 a California Corporation , hereinafter called Principal, and (fill in whethera Corporation, Partnership or individual) SureTec Insurance Company, 3033 5th Avenue, Suite 300, San Diego, CA 92103 NAME AND ADDRESS OF SURETY hereinafter called SURETY, are held and firmly bound unto CITY OF TEMECULA, hereinafter called OWNER, in the penal sum of Seventeen Thousand Ninety Nine DOLLARS and Eighty Four CENTS 17,099.84 in lawful money of the United States, said sum being not less than ten (10%) of the Contract value payable by the said City of Temecula under the terms of the Contract, for the payment of which, we bind ourselves, successors, and assigns, jointly and severally, firmly by these presents. THE CONDiTION OF THIS OBLIGATION is such that whereas, the Principal entered into a certain Contract with the OWNER, dated the 20 day of April , 2007, a copy of which is hereto attached and made a part hereof for the construction of PROJECT NO. PW05-09, ARCHITECTURAL ENHANCEMENT PANELS ON SOUTHERLY SIDE OVERLAND DRIVE BRIDGE OVER INTERSTATE is WHEREAS, said Contract provides thatthe Principal will furnish a bond conditioned to guarantee forthe period of one (1) year after approval of the final estimate on said job, by the OWNER, against all defects in workmanship and materials which may become apparent during said period; and WHEREAS, the said Contract has been completed, and was the final estimate approved on ' 3 bu L , 2007. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that if within one year from the date of approval of the final estimate on said job pursuant to the Contract, the work done under the terms of said Contract shall disclose poor workmanship in the execution of said work, and the carrying out of the terms of said Contract, or it shall appear that defective materials were furnished thereunder, then this obligation shall remain in full force and virtue, otherwise this instrument shall be void, As a part of the obligation secured hereby and in addition to the face amount specified, casts and reasonable expenses and fees shall be included, including reasonable attorn'ey's fees incurred by the City of Temecula in successfully enforcing this obligation, all to be taxed as costs and included in any judgment rendered. The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the RaCI PIPROJEC7 7PWO5%PW 05-03 Sridga rQncingl?hasp 2 - Arch€ ociumi Tr¢almanltCOmmun#calbnvarierlJo6 Ctowout. REVISED.dw terms of the Contract, or to the work to be performed thereunder, or to the specifications accompanying the same, shall in anyway affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract, or to the work, or to the Specifications. Signed and sealed this 10 (Seal) Premier Fabrication & Welding, Inc. dba: Howe Welding & Fabricatiory By: C- APPROVED AS TO FORM: Peter M. Thorson, City Attorney day of Dece,ner '2007. By: 0S CAA- U-nLC (Name) U . P ~-l S (Title) R:\CIP\PROJEOMPW D5\PWD5.06 Bridge FencingThase 2 -Architectural TreatmentlCommunlcaOonVotter\Job Goseoul - REYIS ED.doe Attorney-in-Fact (Title) CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT No. 5907 State of cALIFOaxiA County of San Diego On DEC j 0 Z0L)Y~ before me, Johanna Smith. Notary Public DATE NAME, TITLE OF OFFICER - E.G., -JANE DOE, NOTARY PUBLIC personally appeared Penny E. Kelley NAME(S) OF SIGNER(S) ~I personally known to me - OR - ❑ proved to me on the basis of satisfactory evidence to be the person(g) whose name(s) Waft subscribed to the within instrument and ac- knowledged to me that he/she/Qt y executed hJOHANNASMITH the same in his/her/WiDir authorized COMM #17500f3 ~ capacityoo&~, and that by his/her/their 15 NOTARY PUBLIC-CALIFORNIA My SAN DIEGO COUNTY h signaturelo on the instrument the person(o, JUNEI 0,201jplres or the entity upon behalf of which the person~&) acted, executed the instrument. WITNESS my hand and official seal. ?~GNATURE OF NOTARi' OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of thls form. CAPACITY CLAIMED BY SIGNER ❑ INDIVIDUAL ❑ CORPORATE OFFICER DESCRIPTION OF ATTACHED DOCUMENT TITLE OR TYPE OF DOCUMENT ❑ PARTNER(S) ❑ LIMITED ❑ GENERAL ❑ ATTORNEY-IN-FACT ❑ TRUSTEE(S) ❑ GUARDIAN/CONSERVATOR NUMBER OF PAGES ❑ OTHER: DATE OF DOCUMENT SIGNER IS REPRESENTING: NAME OF PERSON(S) OR ENTITY(IES) SIGNER(S) OTHER THAN NAMED ABOVE 01993 NATIONAL NOTARY ASSOCIATION - 8236 Remmet Ave., P.O. Box 7184 - Canoga Paris, CA 91309-7184 POA 510007 SureTec Insurance Company LIMITED POWER OF ATTORNEY Know All Men by These .Presents, That SURETEC INSURANCE COMPANY (the "Company"), a corporation duly organized and existing under the laws of the State of Texas, and having its principal office in Houston, Harris County, Texas, does by these presents make, constitute and appoint James Baldassare, Jr., Penny E. Kelley, Lawrence F. McMahon, America San Martin, Audrey Rodriguez of San Diego, CA its true and lawful Attorney(s)-in-fact, with full power and authority hereby conferred in its name, place and stead, to execute, acknowledge and deliver any and all bonds, recognizances, undertakings or other instruments or contracts of suretyship to include waivers to the conditions of contracts and consents of surety, providing the bond penalty does not exceed Five Million Dollars and no/100 ($5,000,000.00) and to bind the Company thereby as fully and to the same extent as if such bonds were signed by the .President, sealed with the corporate seal of the Company and duly attested by its Secretary, hereby ratifying and confirming all that the said Attorney(s)-in-Fact may do in the premises. Said appointment shall continue in force until 10/31/08 and is made under and by authority of the following. resolutions of the Board of Directors of the SureTec Insurance Company: Be it Resolved, that the President, any Vice-President, any Assistant Vice-President, any Secretary or any Assistant Secretary shall be and is hereby vested with full power and authority to appoint any one or more suitable persons as Attorney(s)-in-Fact to represent and act for and on behalf of the Company subject to the following provisions: Attorney-in-Fact may be given full power and authority for and in the name of and of behalf of the Company, to execute, acknowledge and deliver, any and all bonds, recognizances, contracts, agreements or indemnity and other conditional or obligatory undertakings and any and all notices and documents canceling or terminating the Company's liability thereunder, and any such instruments so executed by any such Attomey-in-Pact shall be binding upon the Company as if signed by the President and sealed and effected by the Corporate Secretary. Be it Resolved, that the signature of any authorized officer and seal of the Company heretofore or hereafter affixed to any power of attorney or any certificate relating thereto by facsimile, and any power of attorney or certificate bearing facsimile signature or facsimile seal shall be valid and binding upon the Company with respect to any bond or undertaking to which it is attached. (Adopted at a meeting held on 20'4 of April, 1999.) In Witness Whereof, SURETEC INSURANCE COMPANY has caused these presents to be signed by its President, and its corporate seal to be hereto affixed this 20th day of June, A.D. 2005. TEC RANCE COMPANY S~SRAt$C •%0~ By: w i 1 a B.J. Ki g, reside t State of Texas ss:.ti L~-- County of Harris On this 20th day of June, A.D. 2005 before me personally came B.J. King, to me known, who, being by me duly sworn, did depose and say, that he resides in Houston, Texas, that he is President of SURETEC INSURANCE COMPANY, the company described in and which executed the above instrument; that he knows the seal of said Company; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said Company; and that he signed his name thereto by like order. Michelle Denny Notary Public 1~ n • State of lexca X eL` I, 1.~c,Vl,i'Lol, fifty Commission Expires Michelle Denny, Notary P lic August 27, 2008 My commission expires August 27, 2008 1, M. Brent Beaty, Assistant Secretary of SURETEC INSURANCE COMPANY, do hereby certify that the above and foregoing is a true and correct copy of a Power of Attorney, executed by said Company, which is still in full force and effect; and furthermore, the resolutions of the Board of Directors, set out in the Power of Attorney are in full force and effect- Given under my hand and the seal of said Company at Houston, Texas this day DEC J. ®A.D. V. Brent Beaty, ssistant Sec tart' Any Instrument Issued in excess of the penalty stated above is totally void and without any validity. For verification of the authority of this power you may call (793) 812-0800 any business day between 8:00 am and 5:00 pm CST. RECORDING REQUESTED BY AND RETURN TO: CITY CLERK CITY OF TEMECULA P.O. Box 9033 43200 Business Park Drive Temecula, CA 92589-9033 NOTICE OF COMPLETION NOTICE IS HEREBY GIVEN THAT: 1. The City of Temecula is the owner of the property hereinafter described. 2. The full address of the City of Temecula is 43200 Business Park Drive, Temecula, California 92590. 3. The Nature of Interest is a Contract which was awarded by the City of Temecula to Premier Fabrication & Welding, Inc. dba: Howe Welding & Fabrication, 41218 Nick Lane, Murrieta, CA 92562 to perform the following work of improvement: ARCHITECTURAL ENHANCEMENT PANES ON SOUTHERLY SIDE OVERLAND DRIVE BRIDGE OVER INTERSTATE 15 Project No. PW05-09 4. Said work was completed by said company according to plans and specifications and to the satisfaction of the Director of Public Works of the City of Temecula and that said work was accepted by the City Council of the City of Temecula at a regular meeting thereof held on January 08, 2008. That upon said contract the SureTec Insurance Company was surety for the bond given by the said company as required by law. 5. The property on which said work of improvement was completed is in the City of Temecula, County of Riverside, State of California, and is described as follows: ARCHITECTURAL ENHANCEMENT PANES ON SOUTHERLY SIDE OVERLAND DRIVE BRIDGE OVER INTERSTATE 15 Project No. PW05-09 6. The location of said property is: Overland Drive Overcrossing at Interstate 15, Temecula, California Dated at Temecula, California, this 8t" day of January, 2008 City of Temecula Susan W. Jones M MC, City Clerk STATE OF CALIFORNIA } COUNTY OF RIVERSIDE } ss CITY OF TEMECULA } I, Susan W. Jones CMC, City Clerk of the City of Temecula, California and do hereby certify under penalty of perjury, that the foregoing NOTICE OF COMPLETION is true and correct, and that said NOTICE OF COMPLETION was duly and regularly ordered to be recorded in the Office of the County Recorder of Riverside by said City Council. Dated at Temecula, California, this 8t" day of January, 2008. City of Temecula Susan W. Jones MMC, City Clerk C'Troprarn Files lx~3t)\ NeeviaCorn,Document Converterltemp',867921.doo Form ITEM NO. 8 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: January 8, 2008 SUBJECT: Purchase and Sale Agreement for certain property rights on property located at 44618 and 44700 Pechanga Parkway, Temecula PREPARED BY: Greg Butler, Deputy Director of Public Works - CIP Carol A. Chiodo, Property Agent RECOMMENDATION: That the City Council: Approve substantially in the form attached hereto the Purchase and Sale Agreement between the City of Temecula and Aquiport/Amsdell III, LLC, a Delaware limited liability company ("Aquiport/Amsdell"), for the purchase of an approximate 3,529 square foot permanent easement on property located at 44618 and 44700 Pechanga Parkway, Temecula (APN 961-010-009 and 961-010-047) for the widening of Pechanga Parkway at a purchase price of $90,000 plus escrow fees. 2. Authorize the City Manager to execute the Purchase and Sale Agreement in the amount of $90,000 to cover the cost of the easement plus the associated escrow fees not to exceed $2,000.00, approve and execute any necessary documents and to take all necessary actions to complete this acquisition, including without limitation, all escrow instructions. BACKGROUND: The Pechanga Parkway Improvement Project is included in the Capital Improvement Program for Fiscal Years 2008-2012. The scope of work for this project includes the construction of full-width street improvements of Pechanga Parkway from south of the Pechanga Parkway Bridge to Wolf Valley Road. Full width is 134 feet from south of Pechanga Parkway Bridge to Via Gilberto, and 110 feet from Via Gilberto to Wolf Valley Road. The project includes the design, acquisition, environmental studies, mitigation, and construction of road improvements to include curb, gutter, sound wall, and storm drain facilities on Pechanga Parkway from Deer Hollow Way to Temecula Creek. On June 12, 2007 the City Council set just compensation for the property interests and authorized the Director of Public Works to make offers and negotiate the acquisition of required property rights for the construction of the Pechanga Parkway improvements. The City delivered the original offer on June 14, 2007 to Aquiport/Amsdell for the property interests required for the project. The offer was for the purchase of an approximate 3,529 square foot permanent easement on real property, commonly known as 44618 and 44700 Pechanga Parkway, Temecula, California and identified as Riverside County Tax Assessor's Parcel Numbers 961-010-009 and 961-010-047 for public use, namely street purposes and all uses necessary or convenient thereto. The negotiations have successfully concluded and the attached Purchase and Sale Agreement describes the details of the acquisition of the required property interests to construct the Pechanga Parkway improvements. The purchase amount of $90,000 is the amount the City Council previously authorized for this purchase and offer for these property interests. FISCAL IMPACT: The Pechanga Parkway Improvement Project is funded from several different funding sources including AD 159, CFD-Wolf Creek, DIF-Streets, a Public Lands and Highways grant, and a Pechanga Tribal Contributions. Adequate funds for this acquisition are available in project account, Account No. 210.165.668. ATTACHMENTS: Purchase and Sale Agreement PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS BETWEEN CITY OF TEMECULA AND ACQUIPORT/AMSDELL III, LLC, A DELAWARE LIMITED LIABILITY COMPANY (3,529 SQUARE FOOT PERMANENT EASEMENT - ASSESSOR'S PARCEL NUMBER 961-010-009,961-010-047) THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS ("A2reement") is dated and entered into as of , 2008 ("Effective Date") by and between ACQUIPORT /AMSDELL IJI, LLC, a Delaware limited liability company ("Seller"), and the CITY OF TEMECULA, a municipal corporation ("City"), and constitutes both an agreement to purchase and sell real property between the parties and the parties' escrow instructions directed to First American Title Company ("Escrow Holder"). RECITALS A. Seller is the sole fee owner and resident of the property commonly known as 44618 and 44700 Pechanga Parkway, Temecula, and identified as Riverside County Tax Assessor's Parcel Number 961-010-009 and 961-010-047 ("Larger Parcel"). The Larger Parcel is improved with a public storage facility and is approximately 5.18 acres or 225,641 square feet. B. The City wishes to purchase and Seller desires to grant to the City 3,529 square foot permanent easement ("Property") for public purposes, namely public street purposes and all uses necessary or convenient thereto in connection with the City's proposed improvements to and widening of Pechanga Parkway. The 3,529 square foot Easement is described more particularly in Exhibit "A" hereto and depicted on Exhibit "B" hereto. Exhibits "A" and "B" are incorporated in this Agreement by this reference. C. On January 8, 2008 the City Council approved a settlement of $90,000.00 (Ninety Thousand Dollars) for the Easement. D. Seller desires to sell and the City desires to buy the Property on the terms and conditions set forth herein. NOW THEREFORE, in consideration of the foregoing Recitals and terms and conditions set forth below, which are incorporated herein by this reference, the parties hereto agree as follows: 1. Purchase and Sale. On the Close of Escrow (as defined below), Seller agrees to grant the Property to the City, and the City agrees to acquire the Property from Seller, on the terms and conditions set forth below. 11086\0627\9 )7223-12.13AquiportAl-nsdell -1- 2. Opening and Closing of Escrow. Within ten (10) days after the Effective Date of this Agreement, City shall deliver a fully-executed copy of this Agreement to Escrow Holder. For purposes of this Agreement, "Opening of Escrow" shall mean the date on which Escrow Holder receives fully executed copy of this Agreement. The "Close of Escrow" shall be the date that Grant of Easement and Grant Deed for the Property in favor of the City are recorded in the Official Records of the Riverside County Recorder's Office. The Close of Escrow shall occur after the performance of all duties and obligations under this Agreement. The Close of Escrow shall be on the date that is not later than the first business day occurring thirty (30) days after the Opening of Escrow. Before the Close of Escrow, Seller shall solely bear all risk of loss and damage to the Property from any source whatsoever. 3. Purchase Price and Additional Consideration. The total Purchase Price to be paid by the City for the Property is the sum of $90,000.00 (Ninety Thousand Dollars) ("Purchase Price"), which sum shall be paid to Seller in full in cash on the Close of Escrow. No attempt has been made to assign value to any lesser interest in the Property, including any leasehold estate. The Purchase Price, therefore, is the total price for the Property without distinction or separation for various interests that may be held in the Property. Seller shall be responsible for any apportionment or allocation of the Purchase Price if required for any separately held interests that may exist. 4. Title and Title Insurance. Upon the Opening of Escrow, Escrow Holder shall obtain and issue a title commitment for the Property. Escrow Holder shall also request two copies each of all instruments identified as exceptions on said title commitment. Upon receipt of the foregoing, Escrow Holder shall deliver these instruments and the title commitment to the City and Seller. The City's easement interests to the Property shall be insured at the Close of Escrow by a CLTA Owner's Standard Coverage Policy of Title Insurance in the amount of the Purchase Price (the "Policy"). The Policy of Title Insurance provided for pursuant to this Section shall insure the City's easement interests in the Property free and clear of all liens, encumbrances, and restrictions, subject only to the following permitted conditions of title ("Permitted Title Exceptions"): a. Real property taxes for the then current tax fiscal year, which are a lien not then due and payable; b. The applicable zoning, building and development regulations of any municipality, county, state or federal jurisdiction affecting the Property; and C. The non-monetary exceptions approved by the City prior to Close of Escrow. If the City unconditionally disapproves any such exceptions, Escrow shall thereupon terminate, all funds deposited therein shall be refunded to the City (less the City's share of escrow cancellation charges), and this Agreement shall be of no further force or effect. If the City conditionally disapproves any such exceptions, then Seller 11086\0627\9 )7223-12.13AquiportAlnsaell -2- shall use Seller's best efforts to cause such exceptions to be removed by the Close of Escrow. If such conditionally disapproved non-monetary exceptions are not removed by the Close of Escrow, the City may, at its option, either accept the Property subject to such encumbrances, or terminate the Escrow and receive a refund of all funds deposited into Escrow (less the City's share of escrow cancellation charges), if any, and this Agreement shall thereupon be of no further force or effect. At the Close of Escrow, the City's interests in the Property shall be free and clear of all monetary encumbrances. 5. Grant of Easement. Seller covenants and agrees to deposit with Escrow Holder prior to the Close of Escrow a Grant of Easement for the 3,529 square foot Easement duly executed and acknowledged by Seller, granting to the City the permanent easement interest in the Property. The Grant of Easement shall be in a form provided by the City and shall be approved by the City prior to recording. The Easement granted shall be nonexclusive and shall be consistent with this Agreement. 6. Authorization to Record Documents and Disburse Funds. Escrow Holder is hereby authorized to record the documents and disburse the funds and documents called for hereunder upon the Close of Escrow, provided each of the following conditions has then been fulfilled: a. Escrow Holder can issue in favor of the City the Policy, showing the City's interests in the Property vested in the City subject only to the Permitted Title Exceptions; b. Escrow Holder shall have received the City's notice of approval or satisfaction or waiver of all of the contingencies to the City's obligations hereunder, as provided for in Section 13; and c. Seller shall have deposited with Escrow Holder the Grant of Easement required by Section 5. Unless otherwise instructed in writing, Escrow Holder is authorized to record at the Close of Escrow any instrument delivered through this Escrow if necessary or proper for issuance of the Policy, including the Grant of Easement. Escrow Charees and Prorations. The City shall pay the cost of the CLTA Owner's Standard Coverage Policy of Title Insurance, the Escrow fees and Escrow Holder's customary out-of-pocket expenses for messenger services, long distance telephone, etc. The City shall pay any fees or costs relating to recording of the Grant of Easement with the Recorder's Office of the County of Riverside. City shall pay any documentary or other local transfer taxes, and any other recording fees. Taxes, assessments, penalties, interest charges, and delinquency charges of every kind levied upon or assessed against the Property, except as otherwise expressly set forth herein, shall be paid by Seller through Escrow to the Close 11086\0627\9 )7223-12.13AquiportAlnsaell -3- of Escrow. If the Escrow shall fail to close through no fault of either party or the fault of the City, the City shall pay all Escrow cancellation charges. 8. Warranties and Representations of Seller. Seller hereby represents and/or warrants to the City the following, it being expressly understood and agreed that all such representations and/or warranties are to be true and correct as of the Close of Escrow and shall survive the Close of Escrow: a. Seller hereby represents to the best of Seller's knowledge that (i) on the Close of Escrow the Property shall be free and clear of any and all hazardous or toxic substances, materials, and waste, including, but not limited to, asbestos; (ii) the Property is in compliance with all applicable statutes and regulations, including environmental, health and safety requirements; and (iii) Seller has no notice of any pending or threatened action or proceeding arising out of the condition of the Property or alleged violation of environmental, health or safety statutes, ordinance or regulations. b. Seller hereby warrants and represents that neither this Agreement nor anything provided to be done hereunder, including the transfer of the Property to the City, shall at Close of Escrow violate any contract, agreement or instrument to which Seller is a party, or which affects the Property, and the sale of the Property herein contemplated does not require the consent of any party not a signatory hereto. C. Seller hereby warrants and represents that there are no mechanics', materialmen's or similar claims or liens presently claimed against the Property for work performed or commenced prior to the date of this Agreement. Seller agrees to hold the City harmless from all costs, expenses, liabilities, losses, charges, fees, including attorney fees, arising from or relating to any such lien or any similar lien claimed against the Property and arising from work performed or commenced prior to the Close of Escrow by or on behalf of Seller. d. Seller hereby warrants and represents that there are no written or oral leases or contractual right or option to rent, lease, purchase, or otherwise enjoy possession, rights or interest of any nature in and to the Property or any part thereof, and no persons other than Seller has any right of possession to the Property or any part thereof e. Seller hereby warrants and represents that Seller has no knowledge of any pending, threatened or potential litigation, action or proceeding against Seller or any other Party before any court or administrative tribunal that is in any way related to the Property. f. Seller hereby represents that to the best of Seller's knowledge, Seller is the sole owner of the Property, free and clear of all liens, encumbrances, easements, encroachments from adjacent properties, or rights of way of any nature, other than those that may appear of record in the official records of the Office of the Recorder, County of Riverside. 11086\0627\9 )7223-12.13AquiportAl-nsaell -4- 9. Representations and Warranties of City. City hereby represents and warrants to the Seller the following, it being expressly understood and agreed that all such representations and warranties are to be true and correct as of the Close of Escrow, and shall survive the Close of Escrow,: a. City has taken all required action to permit it to execute, deliver, and perform its obligations under this Agreement. b. City has the power and authority to execute and deliver this Agreement and to carry out its obligations hereunder and consummate the transaction contemplated herein. C. City has obligation to maintain the property rights acquired in this Agreement. 10. Full Payment of Obligations of City. a. It is understood and agreed between Seller and the City that the payments made to Seller as set forth in this Agreement represent an all-inclusive settlement and is full and complete payment of compensation for the acquisition of the interests pertaining to the Property and includes and satisfies any and all other payments, if any, that may be required by law to be paid to Seller arising out of the acquisition of the Property and displacement of the Seller and all persons residing on the Property, and specifically includes, but is not limited to, just compensation for the Property, including, but are not limited to, claims for severance and other damages, attorney's fees, interest, expenses of litigation, expert's fees, precondenination damages, inverse condemnation, or any other damages of every kind and nature suffered or to be suffered by Seller by reason of the City's acquisition of the easements comprising the Property or the Project for which the City is acquiring the Property. 11. Releases. a. This Agreement is a voluntary agreement and Seller, on behalf of itself and its heirs, successors and assigns, hereby fully releases the City, its officials, counsel, employees, and agents, from all claims and causes of action by reason of any damage which has been sustained, or may be sustained, as a result of the City's efforts to acquire the Property or any preliminary steps thereto. Seller further releases and agrees to hold the City harmless from any and all claims and causes of action by reason of any leasehold interest in the Property. b. Seller acknowledges that it may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expense which may have been sustained, may give rise to additional damages, loss, costs or expenses in the future. Nevertheless, Seller hereby acknowledges that this Agreement has been negotiated and agreed upon in light of that situation, and hereby expressly waives any and all rights which Seller may have under California Civil Code 11086\0627\9 )7223-12.13AquiportAl-nsdell -5- Section 1542, or under any statute or common law or equitable principle of similar effect. California Civil Code Section 1542 provides as follows: "A general release does not extend to claims which the Creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." Seller's Initials City's Initials C. This Section 12 shall survive the Close of Escrow. 12. City's Contingencies and Satisfaction. For the benefit of the City, the Closing of Escrow and the City's obligation to consummate the acquisition of the Property shall be contingent upon and subject to the occurrence of all of the following (or the City's written waiver thereof, it being agreed that the City can waive any or all such contingencies) on or before the Close of Escrow: a. That as of the Close of Escrow the representations and warranties of Seller contained in this Agreement are all true and correct. b. The deposit with Escrow Holder of the Grant of Easement pursuant to Section 5 above. C. Escrow Holder's commitment to issue in favor of the City of a CLTA Standard Coverage Owner's Policy of Title Insurance with liability equal to the Purchase Price showing the City's interests in the Property subject only to the Permitted Title Exceptions. d. The City's approval prior to the Close of Escrow of any environmental site assessment, soils or geological reports, or other physical inspections of the Property or the underlying real property that the City might perform prior to the Close of Escrow. 13. Certification of Non-Foreign Status. Seller covenants to deliver to Escrow a certification of Non-Foreign Status in accordance with I.R.C. Section 1445, and a similar notice pursuant to California Revenue and Taxation Code Sections 18805 and 26131, prior to the Close of Escrow. 14. Default. In the event of a breach or default under this Agreement by either the City or Seller, the non-defaulting party shall have, in addition to all rights available at law or equity, the right to terminate this Agreement and the Escrow for the purchase and sale of the Property, by delivering written notice thereof to the defaulting party and to Escrow 11086\0627\9 7223-12.13AquiportAl-nsaell -6- Holder, and if the City is the non-defaulting party, the City shall thereupon promptly receive a refund of all prior deposits, if any. Such termination of the Escrow by a non- defaulting party shall be without prejudice to the non-defaulting party's rights and remedies at law or equity. 15. Notices. All notices and demands shall be given in writing by certified mail, postage prepaid, and return receipt requested, or by personal delivery. Notices shall be considered given upon the earlier of (a) personal delivery, (b) two (2) business days following deposit in the United States mail, postage prepaid, certified or registered, return receipt requested, or (c) one (1) business day following deposit with an overnight carrier service. A copy of all notices shall be sent to Escrow Holder. Notices shall be addressed as provided below for the respective party. The parties agree, however, that if any party gives notice in writing of a change of name or address to the other party, notices to such party shall thereafter be given as demanded in that notice: CITY: City of Temecula 43200 Business Park Drive Post Office Box 9033 Temecula, California 92589-9033 Attention: Shawn Nelson, City Manager COPY TO: Richards, Watson & Gershon Attention: Peter M. Thorson, City Attorney 355 South Grand Avenue 40th Floor Los Angeles, California 90071-3101 SELLER: Aquiport/Arnsdell III, LLC, a Delaware limited liability company c/0 Bass, Berry & Sims Attn: Brian Dobbs 315 Deadrick Street, Suite 2700 Nashville, TN 37238-3001 ESCROW First American Title Company HOLDER: 3625 14th Street Riverside, CA 92501 Attn: Debra Dunn, Escrow Officer Tel. No. (951) 787-1757 Fax No. (866) 558-2890 11086\0627\9 )7223-12.13AquiportAl-nsaell -7- 16. Further Instructions. Each party agrees to execute such other and further escrow instructions as may be necessary or proper in order to consummate the transaction contemplated by this Agreement. 17. Amendments. Any amendments to this Agreement shall be effective only when duly executed by the City and Seller and deposited with Escrow Holder. 18. Miscellaneous. a. Applicable Law. This Agreement shall be construed and interpreted under, and governed and enforced according to the laws of the State of California. b. Entire Agreement. This Agreement supersedes any prior agreement, oral or written, and together with the Exhibits hereto and any agreements delivered pursuant hereto, contains the entire agreement between the City and Seller on the subject matter hereof. No subsequent agreement, representation or promise made by either party hereto, or by or to any employee, officer, agent or representative of either party, shall be of any effect unless it is in writing and executed by the party to be bound thereby. No person is authorized to make, and by execution hereof Seller and the City acknowledge that no person has made, any representation, warranty, guaranty or promise except as set forth herein; and no agreement, statement, representation or promise made by any such person who is not contained herein shall be valid or binding on Seller or the city. C. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. d. Time of Essence. The parties acknowledge that time is of the essence in this Agreement, notwithstanding anything to the contrary in the Escrow company's general Escrow instructions. e. Remedies Not Exclusive and Waivers. No remedy conferred by any of the specific provisions of this Agreement is intended to be exclusive of any other remedy and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute or otherwise. The election of any one or more remedies shall not constitute a waiver of the right to pursue other available remedies. f. Interpretation and Construction. The parties agree that each party has reviewed this Agreement and that each have had the opportunity to have their legal counsel review and revise this agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the 11086\0627\9 )7223-12.13AquiportAlnsdell -8- interpretation of this Agreement or any amendments or Exhibits thereto. In this Agreement the neuter gender includes the feminine and masculine, and singular number includes the plural, and the words "person" and "party" include corporation, partnership, firm, trust, or association wherever the context so requires. The recitals and captions of the sections and subsections of this Agreement are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Agreement. 19. Attoineys' Fees. If either party hereto incurs attorneys' fees in order to enforce, defend or interpret any of the terms, provisions or conditions of this Agreement or because of a breach of this Agreement by the other party, the prevailing party shall be entitled to recover reasonable attorneys' fees from the other party. 20. Assignment. The City may assign its rights under this Agreement or may designate a nominee to acquire the Property, provided, however, that any such assignment or designation shall not relieve the City of any of its obligations under this Agreement. 21. Escrow Holder Need Not Be Concerned. Escrow Holder is not to be concerned with Sections 8, 9, 10, 11, and 12 hereof, and the City and Seller release Escrow Holder from liability or obligation as to Sections 8, 9, 10, 11, and 12 hereof. 11086\0627\9 )7223-12.13AquiportAl-nsdell -9- IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. Dated: Dated: SELLER By: By: [Signatures for two corporate officers required for corporate owners] Dated: ATTEST: Susan Jones, City Clerk Approved as to Form: Peter Thorsen, City Attorney CITY OF TEMECULA, a municipal corporation: Michael S. Naggar, Mayor 11086\0627\9 )7223-12.13AquiportAl-nsdell -10- ITEM NO. 9 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Herman D. Parker, Director of Community Services DATE: January 8, 2008 SUBJECT: YMCA Ground Lease Amendment PREPARED BY: Cathy McCarthy, Development Services Administrator RECOMMENDATION: That the City Council approve the First Amendment to the YMCA Ground Lease. BACKGROUND: The City Council approved a ground lease with the YMCA of Riverside City and County, Inc on January 14, 2003. This ground lease allows the YMCA to lease a portion of Margarita Community Park to build and operate a YMCA facility. It is envisioned that the completed facility will include offices, activity rooms, a fitness center, swimming pool, gymnasium and locker rooms. The YMCA has conducted several fund raising campaigns with great success to offset the cost of construction of this facility. They have also met the milestones outlined in the agreement with the City with plans to begin their grading in February 2008, and construction to begin prior to October 2008. This First Amendment to the ground lease modifies Exhibit B of the original lease to reflect the footprint of the approved facility which is larger than initially anticipated. The amendment also allows the facility to be constructed in three phases. Phase I includes approximately 8,000 square feet of building and the pool area. Phase 11 will include construction of an additional 7,200 square feet including the gymnasium. Construction of a roof over the pool area will occur in Phase 111. Total square footage of the facility will be approximately 27,000 square feet once all phases are completed. The YMCA facility will play a major role in providing a variety of recreational and leisure programs that improve fitness and encourage healthy lifestyles. FISCAL IMPACT: The Amendment to the Ground Lease Agreement has no fiscal impact. ATTACHMENTS: First Amendment to Ground Lease FIRST AMENDMENT TO GROUND LEASE THIS FIRST AMENDMENT TO GROUND LEASE ("First Amendment") is made and entered into as of January 8, 2008, by and between the CITY OF TEMECULA, a California municipal corporation ("City"), and YMCA OF RIVERSIDE COUNTY, INC., a California non-profit corporation ("Tenant"). RECITALS A. On January 14, 2003, City and Tenant entered into a Ground Lease ("Original Lease") to allow the Tenant to lease and use a portion ("Premises")of Margarita Community Park for recreational, social and athletic activities to be made available to the public in order to enhance the availability of such activities to the residents of the City of Temecula.. B. The parties now desire to modify certain terms and conditions of the Original Lease. Now, THEREFORE, in consideration of the mutual obligations in this First Amendment and the Original Lease the parties agree as follows and intend such agreement as the fulfillment of and controlling over any statement in the preceding recitals: 1. Exhibit "B" of the Original Lease is hereby replaced in its entirety and amended to read in its entirety as attached. 2. Paragraphs a and b of Section 5 (Construction of Improvements) of the Original Lease are hereby amended to read in its entirety as follows: "a. Construction. Tenant shall not construct, place or use any temporary or "modular" facilities on the Premises. Tenant shall construct the Building and Improvements in accordance with plans and specifications reasonably approved by City, but Tenant acknowledges and agrees that the Building must contain at least 11,000 usable square feet. Tenant's construction of the Improvements shall be at Tenant's sole cost and expense. All of the work shall be performed diligently, in a good and workmanlike manner, and in compliance with all laws, ordinances and regulations applicable thereto, including all applicable provisions of state, federal and local prevailing wage laws and public bidding requirements, and all zoning requirements and building code requirements of the City of Temecula and any other governmental agency having jurisdiction over the Premises. Tenant shall keep the Premises in a neat and orderly condition, free of weeds, dust and debris during any construction, operation or maintenance activities. Tenant shall protect all adjacent property against damage resulting from the performance of the work on the Premises. Phasing Tenant shall construct all improvements according to the following schedule: 11086i0007I1018061-1 (1) Phase I. Phase I shall include the construction of an outdoor pool area of approximately seven thousand two hundred (7,200) square feet and the construction of approximately eight thousand (8,000) square feet of Building space, including an exercise room, administrative offices, and locker rooms. Construction of Phase I shall commence prior to October 1, 2008. (2) Phase II. Phase II shall include the construction of a gymnasium of approximately 7,200 square feet. (3) Phase III. Phase III shall include the construction of a roof over the pool to enclose the outdoor pool area. The completed project shall total approximately twenty seven thousand (27,000) square feet. b. Evidence of Financing; City Termination Rights. If Tenant fails to deliver to City on or before February 1, 2006, reasonable evidence that Tenant has raised and committed at least Six Hundred Thousand Dollars ($600,000) for the construction of the Building, City may terminate this Lease by written notice given on or before April 1, 2006." Paragraphs c, d, e, f and g of Section are not modified by this First Amendment and remain in full force and effect. 3. Paragraphs a and b of Section 8 (Repairs and Maintenance) of the Original Lease are hereby amended to read in its entirety as follows: "a. Upon and after the CofO Date (as defined in Section 7a.), Tenant shall, at Tenant's sole cost and expense, repair, maintain and replace when necessary all portions of the Premises and Improvements, including all structural components and all interior components in good working order, condition and appearance in order to support the professional programs of the Tenant. Tenant shall, at Tenant's sole cost and expense, obtain, repair, maintain and replace as necessary, all equipment, fixtures and personal property used for the professional programs of the Tenant and the drainage facilities relating to the detention basin included in the lease area, as defined in Exhibit B. b. City shall maintain only the landscaping around the Building, with the exception of the detention basin area included in the lease area, as defined in Exhibit B." Paragraphs c and d of Section 8 are not modified by this First Amendment and remain in full force and effect. 4. Except as otherwise provided in this First Amendment, this First Amendment shall be effective on and after January 8, 2008. The original term of the Original Lease, not withstanding, this First -,Amendment shall have the effect of continuing the Original Lease without interruption. 11086/0007/1018061-1 2 5. This First Amendment, together with the Original Lease, constitutes the entire agreement between the parties pertaining to the subject matter thereof, and any and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this First Amendment together with the Original Lease and shall be of no further force or effect. 6. Except as otherwise provided in this First Amendment, all other terms of the Original Lease remain in full force and effect. [Signatures on Following Page] 11086,,0007/1018061-1 IN WITNESS WHEREOF the parties have executed this First Amendment, as of the day and year first written above. CITY OF TEMECULA By: Michael S. Naggar Mayor Attest: Susan Jones, MMC City Clerk Approved as to Form: Peter M. Thorson City Attorney TENANT: YMCA OF RIVERSIDE CITY AND COUNTY, INC., a California non-profit organization By:_ Name: Title:- By:- Name: Title: 11086/0007/1018061-1 4 MgRCgR/Tq /~Ovn 7Y ITEM NO. 10 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: William G. Hughes, Director of Public Works DATE: January 08, 2008 SUBJECT: Authorize Temporary Street Closure of Main Street between Old Town Front Street and the east side of the Children's Museum Driveway Entrance for the "Gospel & Arts Festival" event scheduled for September 27, 2008, at the Request of Mayor Pro Tern Maryann Edwards and Council Member Chuck Washington, and Delegate Authority to Issue a Special Events/Street Closures Permit to the Director of Public Works PREPARED BY: Daniel York, Deputy Director of Public Works/City Engineer Steve Charette, Associate Engineer RECOMMENDATION: That the City Council: 1. Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY STREET CLOSURE OF MAIN STREET BETWEEN OLD TOWN FRONT STREET AND THE EAST SIDE OF THE CHILDREN'S MUSEUM DRIVEWAY ENTRANCE FOR THE "GOSPEL & ARTS FESTIVAL" EVENT SCHEDULED FOR SEPTEMBER 27, 2008 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURE BACKGROUND: Approximately four weeks ago Mayor Pro Tern Maryann Edwards and Council Member Chuck Washington metwith representatives of Oak Grove Institute to discuss the proposed Gospel &Arts Festival Program. The "Temecula Presents", Lady Tremaine Hawkins "Gospel &Arts Festival" event is scheduled for Friday, September 26 and Saturday, September 27, 2008. Main Street would remain open for Friday's portion of the program. Main Street would be closed for Saturday's portion of the festival from 6 AM to 11 PM. The Gospel & Arts Festival event is scheduled to occur on the Theater campus with performances in the Mercantile and the Theater The event anticipates attracting 7,000 to 10,000 visitors over the course of the 2-day event. The "Temecula Presents" Lady Tremaine Hawkins Gospel & Arts Festival will be the first of its kind that we are aware of, in the Inland Empire. The program would benefit the Old Town Temecula Community Theater, the "Temecula Presents" program, and also Oak Grove Institute. Oak Grove Institute is a non-profit 24-hour residential and educational treatment centerthat serves 76 children who reside on campus. The Theater would generate enough revenues to cover all of our operations costs and would also generate additional revenues. Oak Grove would generate revenues that would offset their operations and also provide funding to pay for the performances. Oak Grove has secured a five-year commitment from Tremaine Hawkins Ministries to provide this program as part of our "Temecula Presents" schedule. Gospel music is a traditional American music genre that staff feels would be a great addition to our annual "Temecula Presents" schedule. In addition Tremaine Hawkins, a 3-time Grammy award winner, would be a great attraction in our "Temecula Presents" season. If approved, staff will work with Oak Grove Institute to establish a performance agreement between the City of Temecula and Oak Grove Institute for the performance. The event will require the closure of Main Street between Old Town Front Street and the east side of the Children's Museum driveway entrance. (See attached Vicinity Map). The event will require assistance from the Public Works Department by providing support services for the street closure, public safety monitoring, and the permit process. Under Vehicular Code Section 21101, "Regulation of Highways", local authorities, for those highways under their jurisdiction, may adopt rules and regulations by ordinance or resolution for, among other instances, "temporarily closing a portion of any street for celebrations, parades, local special events, and other purposes, when, in the opinion of local authorities having jurisdiction, the closing is necessaryfor the safety and protection of persons who are to use that portion of the street during the temporary closing". The City Council adopted Resolution No. 91-96 on September 10, 1991, which provided standards and procedures for special events on public streets, highways, sidewalks, or public right of way. While a process was established for reviews and approvals, no mechanism was provided for delegating authority to temporarily close streets, or portions of streets, for these special events. The subject resolution delegates the authority to approve temporary street closures for this specific event, "The Gospel Arts Festival", to the Director of Public Works. All other special events requiring temporary street closures, construction-related closures, etc, shall remain subjectto the approval of the City Council subject to rules and regulations established by the City Council. These rules and regulations shall also be adopted by resolution in accordance with California Vehicular Code Section 21101. FISCAL IMPACT: The costs for provision, placement, and retrieval of necessary warning, advisory, and barricade devices by the Public Works Department, and Police support services are estimated to be approximately $8,600. These funds would be budgeted in the upcoming budget process for FY 2008-2009. ATTACHMENTS: Resolution No. 08- Vicinity Map Letter of Intent from Oak Grove R:\PARKERHD\AGENDAS\Gospel Arts Festival Event Report.doc RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA, AUTHORIZING TEMPORARY STREET CLOSURE OF MAIN STREET BETWEEN OLD TOWN FRONT STREET AND THE EAST SIDE OF THE CHILDREN'S MUSEUM DRIVEWAY ENTRANCE FOR THE "GOSPEL ARTS FESTIVAL" EVENT SCHEDULED FOR SEPTEMBER 27, 2008 AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO ISSUE A SPECIAL EVENTS PERMIT INCLUDING STREET CLOSURE THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: WHEREAS, the California State Vehicular Code provides for the promulgation of rules and regulations for the temporary closure of public streets by local authorities by Resolution; and WHEREAS, the City Council desires to establish rules and regulations for the temporary closure of public streets in the interest of promoting safety and protection; and WHEREAS, the City of Temecula sponsors the "Gospel Arts Festival" event, for which such temporary street closure on Main Street between Old Town Front Street and the east end of the Children's Museum driveway entrance promotes the safety and protection of persons using or proposing to use that street for the special event; and WHEREAS, the City Council desires to facilitate the issuance of permission to temporarily close Main Street for the "Gospel Arts Festival" event scheduled for Saturday, September 27, 2008; and, NOW, WHEREAS, the City Council desires to authorize the Director of Public Works to approve the temporary street closure of Main Street for the "Gospel Arts Festival" event, and to establish the general rule that all other proposed temporary street closures shall be reviewed and approved subject to conditions, or disapproved, by the City Council; and THEREFORE, BE IT RESOLVED, that the City Council of the City of Temecula, hereby authorizes the Director of Public Works to permit the temporary street closure of Main Street for the "Gospel Arts Festival" event scheduled for September 27, 2008, and affirms the general rule that all other temporary public street closures shall be approved or denied approval by the City Council. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [S EAL] STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 08- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8th day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Tr"\ `O ~f ILDR 'S MUSEUM EVENT SITE F~ GOSPEL ARTS FESTIVAL LEGEND O STREET CLOSURE VI C/N/ T Y MAP BARRICADE Letter of Intent for Lady Tramaine Hawkins Arts & Music Festival Date: December 17, 2007 From: Name: Tommie E. Richardson, Jr. Title: CEO Company: Lady Tramaine Hawkins Ministries To: City of Temecula 43200 Business Park Drive P.O. Box 9033 Temecula, CA 92589-9033 Subject: Proposal for the Creation of the Lady Tramaine Hawkins Arts & Music Festival in the City of Temecula This letter of intent is to confirm our interest and commitment to the festival proposed for the City of Temecula. Lady Tramaine Hawkins Ministries would like to include the following for your consideration. 1. Lady Tramaine Hawkins Ministries will commit to five (5) years for the festival to be held in the City of Temecula. 2. A VIP evening with Lady Tramaine; option-benefiting the Oak Grove Center/EMH Sports for children with autism. 3. Lady Tramaine Hawkins Ministries will be responsible for inviting six (6) headliners for the festival. 4. Budget for Lady Tramaine Hawkins Ministries - staff and committee to be discussed in closed session. 5. Lady Tramaine Hawkins Ministries is recommending an honorarium of between two thousand (2,000) and three thousand (3,000) dollars for headlining artist. 6. Addendum to the Proposal: a. The Best Deserts b. Participation of local acts and performers c. Headlining Artist to be named at a later date We thank you for the opportunity to enter into partnership with the City of Temecula for this spectacular event and we look forward to a lasting relationship in the coming years. Tommie E. Richardson, Jr. CEO Lady Tramaine Hawkins Ministries ITEM NO. 11 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Aaron Adams, Assistant City Manager DATE: January 8, 2007 SUBJECT: Press Inquiries - Press Enterprise (at the request of Council Member Roberts) PREPARED BY: Tamra Middlecamp, Senior Management Analyst RECOMMENDATION: That the City Council direct City staff to require all press inquiries from the Press Enterprise newspaper be submitted in writing to the City Council and City staff. Further, City staff will commit to respond in writing to all Press Enterprise inquires in a timely, efficient and professional manner to ensure the accuracy and effective flow of communication. BACKGROUND: The manner in which the Press Enterprise has recently covered City issues has caused some concerns with respect to the accuracy and completeness of their news articles. In an effort to improve the flow of communication and ensure that the City's position on specific issues is well documented, it is therefore recommended that all press inquiries be submitted from the Press Enterprise to the City in writing. This practice is already currently being utilized in certain circumstances, but is suggested to be expanded with the Press Enterprise. This policy will exempt life and safety situations for the Police and Fire Departments when they are at an emergency scene. It is extremely important to note that the City completely understands the importance of timely responses to critical deadlines that the press may have and this policy will in no way slow the manner in which information is communicated but rather, improve the accuracy and quality of the communication process. Further, the City Manager will have complete discretion and authority to place an item on the City Council agenda pertaining to any article written about the City of Temecula by the Press Enterprise that in his opinion, contain egregious omissions or inaccurate information. The purpose of this effort will be to ensure that the public has a clear, concise and accurate record of the City's position on various City issues. FISCAL IMPACT: None ATTACHMENTS: None. ITEM NO. 12 ORDINANCE NO. 07-20 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA, CALIFORNIA, AMENDING THE TEMECULA REDEVELOPMENT PLAN 1-1988 PURSUANT TO THE PROVISIONS OF HEALTH AND SAFETY CODE SECTION 33333.6 TO REPEAL THE TIME LIMIT ON THE ESTABLISHMENT OF LOANS, ADVANCES, AND INDEBTEDNESS THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare that: A On July 12, 1988, the County of Riverside, prior to the incorporation of the City of Temecula, duly adopted Ordinance No. 658 enacting a Redevelopment Plan, known as the "County of Riverside Redevelopment Plan 1-1988" (hereinafter referred t as the "Temecula Plan"). B. Subsequent to the enactment of the Temecula Plan, the City of Temecula was incorporated on December 1, 1989. C. All the territory to which the Temecula Plan applies (hereinafter referred to as the "Project Are") is now within the corporate boundaries of the City of Temecula. D. Pursuant to City Ordinance 91-11, which became effective May 9, 1991, and City Ordinance No. 91-15, which became effective April 9, 1991, the City approved the Temecula Plan. Said Ordinances had the effect of adopting the Temecula Plan and transferring jurisdiction over the Temecula Plan to the Redevelopment Agency of the City of Temecula (the "Agency"), as of July 1, 1991. Pursuant to Ordinance Nos. 93-04 and 94-03, Ordinance No. 91-11 was codified at Section 8.04.101 of the Temecula Municipal Code. E. On December 20, 2004, the City Council adopted Ordinance No. 94-33, establishing and amending certain time limitations with respect to the Temecula Plan. F. On September 26, 2006, the City Council adopted Ordinance No. 06-11 extending the term of the Temecula Plan for one year. G. Health and Safety Code Section 33333.6(e)(2)(B) provides that on or after January 1, 2002, a redevelopment plan may be amended by a legislative body by adoption of an ordinance to repeal the time limit on the establishment of loans, advances and indebtedness required by Health and Safety Code Section 33333.6 prior to January 1, 2002, and, in adopting such ordinance, neither the legislative body nor the RlOrds 2007/Ords 07-20 agency is required to comply with Health and Safety Code Section 33354.6, Article 12 (commencing with Health and Safety Code Section 33450), or any other provision of the Community Redevelopment Law (Health and Safety Code Section 33000, et seq.) relating to the amendment of redevelopment plans, except that the agency shall make the payment to affected taxing entities required by Health and Safety Code Section 33607.7. H. Health and Safety Code Section 33607.7 provides that if the Agency adopts an amendment that is governed by Health and Safety Code Section 33607.7, such as the amendment provided for in this Ordinance, the Agency shall pay to each affected entity, being those taxing entities for which a property tax is levied in the Project Area, either of the following: (1) if an agreement exists between the Agency and an affected taxing entity that was entered into prior to January 1, 1994, and requires payments to the taxing entity, the amounts required to be paid by such agreement; or (2) if such an agreement does not exist, the amounts required pursuant to Health and Safety Code Section 33605.5 calculated in accordance with the provisions of Health and Safety Code Section 33607.7 (i.e., statutory pass through payments). Prior to the transfer of jurisdiction over the Temecula Plan from the County to the Agency, the Redevelopment Agency of the County of Riverside entered into pass through agreements with each of the Project Area taxing entities, and the County Auditor Controller continues to disburse payments to the taxing entities pursuant to such agreements. Therefore, statutory pass thorough payments will not be required to be made following the adoption of this Ordinance. 1. The Agency and the City Council desire that the Temecula Plan be amended to repeal the Plan's time limit on the establishment of loans, advances and indebtedness. Section 2. Section 540 of the Temecula Plan is hereby amended to read as follows: "FINANCING LIMITATIONS" Consistent with Sections 33333.6 and 33334.1 of the California Community Redevelopment Law, the following financing limitations are imposed on this Plan: Taxes, as defined in Section 33670 of the Redevelopment Law shall not be divided and shall not be allocated to the Agency in excess of One Billion One Hundred ten Million Dollars ($1,110,000,000) except by amendment of this Plan. This limitation is subject to the limits on the incurrence of debt, if any, imposed by the Final Judgment in the case entitled Robert Dawes, Save Historical Temecula v. Redevelopment Agency of the County of Riverside, et at. Riverside County Superior Court Case No. 194468 MF, consolidated with Case No. 194948. RlOrds 2007/Ords 07-20 There shall be no time limit on the establishing of loans, advances and indebtedness to be paid with the proceeds of property taxed described in the before-mentioned Section 33670 and received by the Agency, to finance, in whole or in part, the Project. From time to time as may be appropriate, the Agency may issue bonds and/or notes for any of its corporate purposes. The Agency may issue such types of bonds on which the principal and interest are payable in whole or in part for tax increments. The total outstanding principal of any bonds so issued and repayable from said tax increments shall not exceed Three Hundred Forty million Dollars ($340,000,000) at any one time, except by amendment of this Plan. Tax increment revenue generated in each of the noncontiguous portions of the Project Area shall be accounted for separately and shall be used to benefit the respective communities in which such revenues were generated." Section 3. the enactment of this Ordinance is not a project pursuant to the California Environmental Quality Act (Public Resources Code Section 21000 et seq.) and CEQA Guidelines (14 Cal.Code Regs Section 15000 et seq.), and specifically Section 15378(b)(4) because the actions described herein are the continuation of an existing governmental funding mechanism and a fiscl activity that does not involve any commitment to any specific \project which may result in a potentially significant physical impact on the environment. Because enactment of this Ordinance is not a project for CEQA purposes, this action is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), and the City Clerk is directed to file a Notice of Exemption with the County Clerk pursuant to CEQA Guidelines Section 15062 within five (5) days of the adoption date of this Ordinance. Section 4. The City Clerk is directed to send a certified copy of this Ordinance to the Agency. Section 5. The City Clerk is directed to certify and publish this Ordinance as is required by law. RlOrds 2007/Ords 07-20 PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [S EAL] STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 07-20 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 11th day of December, 2007, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8th day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk R:/Ords 2007/Ords 07-20 4 ITEM NO. 13 ORDINANCE NO. 07-21 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TEMECULA AS REQUIRED BY S1353, CONFIRMING THAT THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA DOES NOT HAVE THE AUTHORITY TO ACQUIRE REAL PROPERTY BY EMINENT DOMAIN THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. The City Council of the City of Temecula does hereby find, determine and declare that A. The Redevelopment Agency of the City of Temecula Agency") is a redevelopment agency in the City of Temecula City created pursuant to the California Community Redevelopment Law, California Health & Safety Code Section 33000 et seq. B. California Health & Safety Code Section 33342.7 (added by Senate Bill No. 53) became effective January 1, 2007, and requires a legislative body that adopted a final redevelopment plan before January 1, 2007, to adopt an ordinance describing the redevelopment agency's program to acquire real property by eminent domain. C. On July 12, 1988, the Board of Supervisors of the County of Riverside, prior to incorporation of the City, by Ordinance No. 658, approved and adopted the County of Riverside Redevelopment Plan 1-1988 ("Temecula Plan"). D. The City was incorporated on December 1, 1989, subsequent to the enactment of the Temecula Plan by the County of Riverside. E. All of the territory to which the Temecula plan applies ("Project Area") is now within the corporate boundaries of the City. F. Pursuant to City Ordinance No. 91-11, which became effective May 9, 1991, and City Ordinance No. 91-15, which became effective May 9, 1991, and City Ordinance No. 91-15, which became effective on April 9, 1991, the City approved the Temecula Plan. Ordinance Nos. 91-11 and 91-15 had the effect of adopting the Temecula Plan and transferring jurisdiction over the Plan to the Agency as of July 1, 1991. City Ordinance Nos. 93-04 and 94-03 codified Ordinance No. 91-11 at Section 8.04.010 of the Temecula Municipal Code. G. On December 20, 1994, the City Council adopted Ordinance No. 94-33, establishing and amending certain time and financial limitations with respect to the Temecula Plan pursuant to the requirements of Assembly Bill 1290 (Chapter 942 of 1993). RlOrds 2007/Ords 07-21 H. On September 26, 2066, the City Council adopted Ordinance No. 06-11, extending the term of the Temecula Plan for one year pursuant to California Health and Safety Code Sections 33333.6 and 33670. 1. The Temecula Redevelopment Plan specifically provides in Section 321 that the Agency has no authority to acquire real property by eminent domain in the Project Area. J. Therefore, the Agency has no program to acquire real property by eminent domain because the Agency has no authority to acquire real property by eminent domain in the Project Area. Section 2. The City Council further finds, determines and declares that without amending the Temecula Plan, the Agency does not have a program for the acquisition of real property by eminent domain in the Project Area. Section 3. The City Council further finds, determines and declares that this Ordinance is adopted pursuant to California Health & Safety Code Section 33342.7 (SB53) and no amendment of the Temecula Plan is effected by this Ordinance. Section 4. The City Council further finds, determines and declares that this Ordinance has been reviewed with respect to applicability of the California Environmental Quality Act ("CEQA"), and the State CEQA Guidelines (California Code of Regulations, Title 14, sections 15000 et seq., hereafter the "Guidelines"), and the City of Temecula s environmental guidelines. The City has determined that this Ordinance is not a "project" for purposes of CEQA, as that term is defined by Guidelines Section 15378. Specifically, this Ordinance is adopted in order to comply with the requirements of California Health & Safety Code Section 33342.7, and is an organizational or administrative activity that will not result in a direct or indirect physical change in the environment. (Guidelines Section 15378(b)(5)). Therefore, because it is not a "project," this Ordinance is not subject to CEQA's requirements. Further, even if this Ordinance were deemed a "project" and therefore subject to CEQA, the Ordinance would be covered by the general rule that CEQA applies only to projects that have the potential to cause a significant effect on the environment. (Guidelines Section 15061 (b)(3)). As an organizational or administrative activity that does not effect any change in the Agency's authority to exercise its powers of eminent domain and involves no exercise of such powers, the Ordinance does not have the potential to cause a significant effect on the environment and is therefore exempt under this general rule. Further, it can be seen with certainty that there is no possibility that the activity in questions may have a significant effect on the environment, and thus this Ordinance is not subject to CEQA. (Guidelines Section 15061(b)(3)). Section 5. Staff is hereby directed to file a Notice of Exemption with the County Clerk within five days of the adoption of this Ordinance pursuant to Section 15062 of the Guidelines. RlOrds 2007/Ords 07-21 Section 6. The City Clerk is hereby directed to send a certified copy of the Ordinance to the Agency. Section 7. If any part of this Ordinance is held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, for any reason, such decision shall not affect the validity of the remaining portions of this Ordinance and this City Council hereby declares that it would have passed the remainder of this Ordinance it such invalid or unconstitutional portion thereof had been deleted. Section 8. The City Clerk shall certify to the passage of this Ordinance and is hereby directed to publish or post this Ordinance in accordance with law. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [SEAL] RlOrds 2007/Ords 07-21 3 STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Ordinance No. 07-21 was duly introduced and placed upon its first reading at a meeting of the City Council of the City of Temecula on the 11 th day of December, 2007, and that thereafter, said Ordinance was duly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8t" day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RlOrds 2007/Ords 07-21 TEMECULA COMMUNITY SERVICES DISTRICT ITEM NO. 14 MINUTES OF A REGULAR MEETING OF THE TEMECULA COMMUNITY SERVICES DISTRICT DECEMBER 11, 2007 A regular meeting of the City of Temecula Community Services District was called to order at 8:08 p.m., in the City Council Chambers, 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 5 DIRECTORS: Comerchero, Edwards, Naggar, Roberts, and Mayor Washington ABSENT: 0 DIRECTORS: None. Also present were City Manager Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS No input. CSD CONSENT CALENDAR 19 Minutes RECOMMENDATION: 19.1 Approve the minutes of November 27, 2007. 20 Financial Statements for the Three Months Ended September 30, 2007 RECOMMENDATION: 20.1 Receive and file the Financial Statements for the three months ended September 30, 2007; 20.2 Approve an increase of $25,000 for donations in the Parks & Recreation Fund; 20.3 Approve an appropriation of $25,000 for rehabilitation in the Parks & Recreation Fund. 21 Food, Beverage and Alcohol Beverage Sales Agreement with Sherry Berry Music RECOMMENDATION: 21.1 Approve in substantial form an agreement with Sherry Berry Music to provide food, beverage and alcoholic beverage sales at the Old Town Temecula Community Theater. RAMinutes1121107 22 Professional Services Agreement with RJM Design Group for Plans and Specifications for the Redhawk Parks Improvement Protect - Phase 1 RECOMMENDATION: 22.1 Approve a professional services agreement, in its substantial form, in the amount of $164,574 with RJM Design Group for design development and completion of Plans and Specifications for the Redhawk Parks Improvement Project - Phase I; 22.2 Authorize the General Manager to approve additional work not to exceed $16,457 which is equal to 10% of the agreement amount; 22.3 Find that the proposed improvements are exempt from the provisions of California Environmental Quality Act because they are categorically exempt under the Class 1 Categorical Exemption, Existing Facilities (14 Cal. Code Regs. §15301), Class 2 Categorical Exemption, Replacement or Reconstruction (14 Cal. Code Regs. §15302), and direct the City Manager to file a Notice of Exemption as required by law; 22.4 Authorize the preparation of construction documents and release a formal public bid for the Redhawk Parks Improvement Project -Phase I. 23 Mitigated Negative Declaration for Ronald Reagan Desilting Basin Project - Protect No. PW05-13 RECOMMENDATION: 23.1 Adopt a resolution entitled: RESOLUTION NO. CSD 07-13 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT ADOPTING A MITIGATED NEGATIVE DECLARATION FOR THE RONALD REAGAN SPORTS PARK DESILTING BASIN PROJECT (PW05-13) AND APPROVING THE PROJECT MOTION: Director Naggar moved to approve the Consent Calendar. Director Edwards seconded the motion and electronic vote reflected approval with the exception of Director Roberts and Director Comerchero who abstained on Item No. 19 CSD PUBLIC HEARING 24 Service Level C Election Public Hearing RECOMMENDATION: 24.1 Adopt a resolution entitled: RAMinutes1121107 RESOLUTION NO. CSD 07-14 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA COMMUNITY SERVICES DISTRICT OF THE CITY OF TEMECULA CALLING A SPECIAL MAIL BALLOT ELECTION FOR MARCH 4, 2008 TO SUBMIT A PROPOSED INCREASE TO THE RATES AND CHARGES FOR SERVICE LEVEL C TO OWNERS OF REAL PROPERTY SUBJECT TO THE PROPOSED INCREASE, APPROVING A REPORT ON THE PROPOSED INCREASE AND ADOPTING PROCEDURES FOR THE CONDUCT OF THE ELECTION. 24.2 Approve the Notice of Election, Ballot, and Procedures for the Completion, Return and Tabulation of the Ballots; 24.3 Authorize staff to mail the ballots to the affected property owners pursuant to the aforementioned process. City Attorney Thorson advised that any Council Member living within Service Level C boundary would have to abstain. Due to a conflict of interest, Director Comerchero refrained from voting on Item No. 24 and recused himself from the dais. Director of Community Services Parker provided a staff report (of record). At this time, the public hearing was opened and due to no speakers, it was closed. City Clerk Jones stated that she received nine protest letters none of which represent a majority protest; therefore, the Board may call for the election. Director Naggar explained the Service level C Election. MOTION: Director Naggar moved to approve Item No. 24.1, 24.2, and 24.3. Director Edwards seconded the motion and electronic vote reflected approval with the exception of Director Comerchero who abstained. Director Comerchero returned to the dais. CSD BUSINESS 25 Appointment of President and Vice President of the Community Services District for Calendar Year 2008 RECOMMENDATION: 25.1 Entertain motions from the Board of Directors to appoint the President, effective January 1, 2008, to preside until the end of Calendar Year 2008; 25.2 Entertain motions from the Board of Directors to appoint the Vice President, effective January 1, 2008, who will assume the duties of the President in the President's absence, and hold this office until the end of Calendar Year 2008. R:1Minutes1121107 3 MOTION: Director Naggar moved to appoint Director Comerchero to serve as President for Calendar and Director Washington to serve as Vice President for Calendar Year 2008. Director Edwards seconded the motion and electronic vote reflected unanimous approval. Director Comerchero relayed his enthusiasm to serve as President for Calendar Year 2008. CSD DIRECTOR OF COMMUNITY SERVICES REPORT Director Comerchero invited the public to attend Santa's Electric Light Parade on Friday, December 14, 2007, at 7:00 p.m. CSD GENERAL MANAGERS REPORT No additional comments. CSD BOARD OF DIRECTORS REPORTS No additional comments. CSD ADJOURNMENT At 8:19 p.m., the Temecula Community Services District meeting was formally adjourned to Tuesday, January 8, 2008, at 5:30 p.m. for a Closed Session, with regular session commencing at 7:00 p.m., City Council Chambers, 43200 Business Park Drive, Temecula, California. Jeff Comerchero. President ATTEST: Susan W. Jones, MMC City Clerk/District Secretary [SEAL] RAMinutes1121107 REDEVELOPMENT AGENCY ITEM NO. 15 MINUTES OF A REGULAR MEETING OF THE TEMECULA REDEVELOPMENT AGENCY DECEMBER 11, 2007 A regular meeting of the City of Temecula Redevelopment Agency was called to order at 8:19 p.m., in the City Council Chambers, at 43200 Business Park Drive, Temecula, California. ROLL CALL PRESENT: 5 AGENCY MEMBERS: Comerchero, Naggar, Roberts, Washington, and Edwards ABSENT: 0 AGENCY MEMBERS: None. Also present were City Manager Nelson, City Attorney Thorson, and City Clerk Jones. PUBLIC COMMENTS None. RDA CONSENT CALENDAR 1 Minutes RECOMMENDATION: 26.1 Approve the minutes of November 27, 2007. 2 Financial Statements for the Three Months Ended September 30, 2007 RECOMMENDATION: 27.1 Receive and file the Financial Statements for the three months ended September 30, 2007. MOTION: Agency Member Naggar moved to approve the Consent Calendar. Agency Member Washington seconded the motion and electronic vote reflected approval with the exception of Agency Members Comerchero and Roberts who abstained. RAMinutes\121107 RDA BUSINESS 3 Appointment of Chairperson and Vice Chairperson of the Redevelopment Agency for Calendar Year 2008 RECOMMENDATION: 28.1 Entertain motions from the Agency Members to appoint the Chairperson to preside, effective January 1, 2008, until the end of Calendar Year 2008; 28.2 Entertain motions from the Agency Members to appoint the Vice Chairperson, effective January 1, 2008, who will assume the duties of the Chairperson in the Chairperson's absence, and hold this office until the end of Calendar Year 2008. MOTION: Agency Member Comerchero moved to appoint Agency Member Roberts to serve as Chairperson and Agency Member Edwards to serve as Vice Chairperson for Calendar Year 2008. Agency Member Naggar seconded the motion and electronic vote reflected unanimous approval. RDA EXECUTIVE DIRECTORS REPORT No reports at this time. RDA AGENCY MEMBERS REPORTS No reports at this time. RDA ADJOURNMENT At 8:23 p.m., the Temecula Redevelopment Agency meeting was formally adjourned to Tuesday, January 8, 2008, at 5:30 p.m. for Closed Session, with regular session commencing at 7:00 p.m., City Council Chambers, 43200 Business Park Drive, Temecula, California Maryann Edwards, Chairman ATTEST: Susan W. Jones, MMC City Clerk/Agency Secretary [SEAL] RAMinutes\121107 ITEM NO. 16 Approvals City Attorney Director of Finance City Manager TEMECULA REDEVELOPMENT AGENCY AGENDA REPORT TO: Executive Director/Agency Members FROM: Genie Roberts, Director of Finance DATE: January 08, 2008 SUBJECT: Component Unit Financial Statements for Fiscal Year Ended June 30, 2007 PREPARED BY: Jason Simpson, Assistant Finance Director RECOMMENDATION: That the Agency Members approve the Temecula Redevelopment Agency Component Unit Financial Statements for Fiscal Year Ended June 30, 2007. BACKGROUND: Pursuant to Section 33080.1 of the Health & Safety Code, the Agency is required to submit an annual report to the Board within six (6) months of the end of the Agency's fiscal year. Although the attached report was provided to the City Council prior to December 31, 2007 (within six months), the auditors have recommended that staff also formally place the report on the consent calendar for receipt and filing. As a result of a new accounting rule, Governmental and Accounting Standards Board's (GASB) Statement Number 34, Basic Financial Statements and Management's Discussion and Analysis (MD&A) for State and Local Governments, the City is required to change the presentation of its annual financial statements and analysis effective with the fiscal year ending June 30, 2003. Some major changes include the reporting of infrastructure assets, showing activities on a program level, and the inclusion of the MD&A. FISCAL IMPACT: None. ATTACHMENTS: Component Unit Financial Statement for Fiscal Year Ended June 30, 2007. TEMECULA REDEVELOPMENT AGENCY COMPONENT UNIT FINANCIAL STATEMENTS WITH REPORT ON AUDIT BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS JUNE 30, 2007 TEMECULA REDEVELOPMENT AGENCY TABLE OF CONTENTS June 30, 2007 Page Number Independent Auditors' Report 1-2 Management's Discussion and Analysis 3 -7 Basic Financial Statements: Statement of Net Assets g Statement ofActivities 9 Balance Sheet - Governmental Funds 10 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Assets 11 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 12 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 13 Notes to Basic Financial Statements 14 - 31 Required Supplementary Information: Budgetary Comparison Schedule - RDA Low and Moderate Income Housing Special Revenue Fund 32 Other Supplementary Information: Computation of Low/Moderate Income Housing Fund - Excess Surplus 33 Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 34 - 35 DIEHL, EVANS & COMPANY, LLP © CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS WCHAEL R. AKELR CPA A PARTNERSHIP INCLUDING ACCOUNTANCY CORPORATIONS CRAIG IG W. W. APRRI CPA f NDIN P. PATEI~ CPA ROEF,RLANAN, CPA 2121 ALTON PARKWAY, SUITE 9100 -PHaJP H•THOMAS. I K HOLTKAW, CPA PERLOWSIO, CPA IRVINE, , CALIFORNIA 9260606--4956 'HARVEY I. SCHROEDER CPA (949) 399-0600 • FAX (949) 399-0610 KENNETH R. AMES, CPA www.dicMcv=.com •AMFES$10N COR MnoN October 17, 2007 INDEPENDENT AUDITORS' REPORT Agency Members Temecula Redevelopment Agency Temecula, California We have audited the accompanying basic financial statements of the governmental activities and each major fund of the Temecula Redevelopment Agency (a component unit of the City of Temecula), as of and for the year ended June 30, 2007, which collectively comprise the Agency's basic financial statements, as listed in the table of contents. These basic financial statements are the responsibility of the Agency's management. Our responsibility is to express opinions on these basic financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditine Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the Temecula Redevelopment Agency as of June 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. J OTHER OFFICES AT: _l -1- 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARLSBAD, CALIFORNIA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598 (760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890 In accordance with Government Auditing Standards, we have also issued our report dated October 17, 2007 on our consideration of the Temecula Redevelopment Agency's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, P-~ contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That =r report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. The information identified in the accompanying table of contents as management's discussion and J analysis and required supplementary information are not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally l J of inquiries of management regarding the methods of measurement and presentation of this supplementary information. However, we did not audit the information and express no opinion on it. f j a Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Temecula Redevelopment Agency's basic financial statements. The computation of the excess surplus of the Low and Moderate Income Housing Special Revenue Fund is t presented for additional analysis and is not a required part of the basic financial statements. The r~ information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. 9 i y -2- 0 n Management's Discussion and Analysis B 0 V 0 Fiscal Year Ended June 30, 2007 As management of the Temecula Redevelopment Agency (the Agency), we offer readers of the Agency's basic financial statements this narrative overview and analysis of the financial activities of the Agency for the fiscal year ended June 30, 2007. We encourage readers to consider the information presented here in conjunction with additional information that has been furnished in the accompanying basic financial statements. Financial Highlights • The Agency's governmental activities resulted in net assets (deficit) of $4,028,801. An increase in net assets of $4,019,943 from the prior year, as restated July 1, 2006. The increase was primarily due to the capitalization of expenditures incurred for development of Agency owned land under an agreement that expired March 30, 2007. Due to the expiration, the Agency's focus included the potential of selling the land and the related investment into the property' at fair market value. As such, the Agency reclassified the investment to an asset called Land Held for Resale rather than treat the funds as project expenditures. • The liabilities of the Agency exceeded its assets at the close of the current fiscal year by $4,028,801. • Tax increment revenues increased from $15,458,292 to $15,633,673 due to development growth within the project area, particularly new buildings in Old Town Temecula and other projects around the Promenade Mall. Overview of the Financial Statements U The discussion and analysis are intended to serve as an introduction to the Temecula Redevelopment Agency basic financial statements. The Agency's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. J Government-wide financial statements The government-wide financial statements are designed to provide readers with a broad overview of the Agency's finances, in a manner similar to a private-sector business. LJ r} L ' See independent auditors' report. -3- Redevelopment Agency TEMECULA REDEVELOPMENTAGENCY Management's Discussion and Analysis, continued Year Ended June 30, 2007 i Government-wide financial statements (Continued) The statement of net assets presents information on all the Temecula Redevelopment Agency assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the Agency is improving or deteriorating. 1 The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying events giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). The government-wide financial statements present information about the functions of the Temecula Redevelopment Agency that is principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the Agency include Low and Moderate Income Housing, Redevelopment CIP and Debt Service. 8 Fund financial statements 8 a Afund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Temecula Redevelopment Agency, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances on spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental fund is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may be better understanding the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Temecula Redevelopment Agency maintains various individual government funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances; all of which are considered to be major funds. See independent auditors' report. `y 4 1 TEMECUL4 REDEVELOPMENTAGENCY Management's Discussion and Analysis, continued Year Ended June 30, 2007 Notes to Basic Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to basic financial statements can be found on pages 14-31 of this report. Other information ti In addition to the basic financial statements and accompanying notes, this report also presents the 1 computation of the Low/Moderate Income Housing Fund's excess surplus balance. Government -wide Financial Analysis As noted earlier, the net assets for the Temecula Redevelopment Agency increased (deficit) by $4,019,943 at June 30, 2007. The Agency's primary source of revenue comes from property taxes and interest earnings. The Agency's plan is to achieve the objectives of the Redevelopment plans. The following summaries of net assets and change in net assets are presented for the current year and prior year amounts for comparative purposes. l~ t r I Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Unrestricted Total Net Assets (Deficit) } See independent auditors' report. i. J Temecula Redevelopment Agency Summary of Net Assets June 30, 2007 and June 30, 2006 Government Activities 2006 2007 (as restated) $ 49,809,492 $ 16,343,844 3,892,960 7,853,102 53,702,452 24,196,946 49,803,316 28,762,837 7,927,937 3,482,853 57,731,253 32,245,690 (4,028,801) (8,048,744) $ (4,028,801) $ (8,048,744) -5- TEMECULA REDEVELOPMENTAGENCY Management's Discussion and Analysis, continued s Year Ended June 30, 2007 Temecula Redevelopment Agency r Changes in Net Assets For the Years ended June 30, 2007 and June 30, 2006 1 Governmental Activities 2007 2006 4 Revenues: General revenues: Taxes: ~ Tax increment $ 15,633,673 $ 15,458,292 i Investment earnings 1,249,463 565,458 Other Income 2,975,366 120,465 Total revenues 19,858,502 16,144,215 Expenses: Community development 13,853,996 16,351,779 1 Interest expense 1,984,563 1,460,632 Total expenses 15,838,559 17,812,41 1 Change in Net Assets $ 4,019,943 $ (1,668,196) Financial Analysis of the Government's Funds As noted earlier, the Temecula Redevelopment Agency uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus of the Temecula Redevelopment Agency's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Temecula Redevelopment Agency's financing requirements. In particular, unreserved fund balance may serves as a useful measure of government's net resources available for spending at the end of the fiscal year. The Temecula Redevelopment Agency tax increment grew by 1.13% or $175,381 over the prior year, which is representative of the significant development growth realized during the year. Capital Asset and Debt Administration Capital assets The Temecula Redevelopment Agency's investment in capital assets for its governmental activities as of June 30, 2007, amounts to $3.9 million (net of accumulated depreciation). This investment is capital assets include land, fiuniture and equipment. More detailed information about the Agency's capital assets is presented on page 25 in the Notes to the Basic Financial Statements. See independent auditors' report. -6- a ll fl l~ ~i r~ i t t~ 1.1 TEMECULA REDEVELOPMENT AGENCY Management's Discussion and Analysis, continued Year Ended June 30, 2007 Capital Asset and Debt Administration (Continued) Long-term debt At the end of the current fiscal year, the Temecula Redevelopment Agency had $48.2 million of Tax Allocation Bonds backed by the tax increment credit allocated. During the fiscal year, the Temecula Redevelopment Agency issued $21.1 million in tax allocation bonds to fund various Old Town infrastructure projects, including relocation, demolition and grading costs, under-grounding of utilities, street improvements, civic plaza improvements and the construction of a roughly 480 space parking facility. More detailed information about the Agency's long-term debt is presented on pages 25 to 28 in the Notes to the Basic Financial Statements. Economic Factors and Next Year's Budgets and Rates The key assumptions of the Agency's forecast for fiscal year 2007-08 were: 1. An 8% increase in tax increment revenue is projected due to strong commercial and industrial development, as well as increasing property valuations in the project area. Abbott Vascular is in the process of expanding their manufacturing facilities and related parking improvements within an estimated investment of over $100 million. 2. To promote, encourage participation in the Fagade Improvement Program and to recruit new businesses to open in Old Town. 3. To encourage private investment in the expansion of affordable housing and partner with non-profit and for profit developers to construct affordable family and senior housing. All of these factors were considered in preparing the Temecula Redevelopment Agency's annual operating budget for 2007-08 fiscal year. Requests for Information California 92589-9033. This financial report is designed to provide a general overview of the Temecula Redevelopment Agency's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Temecula Redevelopment Agency Finance Department, P.O. Box 9033, Temecula, See independent auditors' report. -7- BASIC FINANCIAL STATEMENTS TEMECULA REDEVELOPMENT AGENCY STATEMENT OF NET ASSETS June 30, 2007 ASSETS: Cash and investments (Note 2) Cash and investments with fiscal agents (Note 2) Receivables: Interest Taxes, including interest, penalties and liens Notes Other Land held for resale (Note 3) Bond issue cost Capital assets (net of accumulated depreciation) (Note 4) TOTAL ASSETS LIABILITIES: Accounts payable Accrued liabilities Interest payable Deposits Deferred revenue Noncurrent liabilities (Note 5): Due within one year Due in more than one year TOTAL LIABILITIES NET ASSETS (DEFICIT): Unrestricted TOTAL NET ASSETS (DEFICIT) Governmental Activities $ 13,899,171 20,660,242 420,346 133,380 7,085,400 481,966 6,714,661 414,326 3,892,960 53,702,452 43,020 384,755 895,175 15,000 6,589,987 755,000 49,048,316 57,731,253 (4,028,801) 1__a,028,801) See independent auditors' report and notes to basic financial statements. -8- TEMECULA REDEVELOPMENT AGENCY STATEMENT OF ACTIVITIES For the year ended June 30, 2007 Net (Expense) Functions/Programs PRIMARY GOVERNMENT: Governmental activities: Community development Interest expense Total governmental activities Revenue and Changes in Program Revenues Net Assets Operating Capital Charges for Grants and Grants and Governmental Expenses Services Contributions Contributions Activities $ 13,853,996 $ $ $ - $(13,853,996) 1,984,563 - (1,984,563) $ 15,838,559 $ - $ - $ - (15,838,559) GENERAL REVENUES: Taxes: Tax increment 15,633,673 Investment earnings 1,249,463 Other 2,975,366 Total general revenues 19,858,502 CHANGE IN NET ASSETS 4,019,943 NET ASSETS (DEFICIT) - BEGINNING OF YEAR, AS RESTATED (NOTE 11) (8,048,744) NET ASSETS (DEFICIT) - END OF YEAR $ (4,028,801) See independent auditors' report and notes to basic financial statements. -9- TEMECULA REDEVELOPMENT AGENCY BALANCE SHEET- GOVERNMENTAL FUNDS ASSETS Cash and investments Cash and investments with fiscal agents Receivables: Interest Taxes, including interest, penalties and liens Notes Other Land held for resale TOTAL ASSETS LIABILITIES AND FUND BALANCES LIABILITIES: Accounts payable Accrued liabilities Deposits Deferred revenue TOTAL LIABILITIES FUND BALANCES: Reserved for: Encumbrances Debt service Land held for resale Low and moderate income housing Long-term assets Unreserved: Designated for capital projects TOTAL FUND BALANCES TOTAL LIABILITIES AND AND FUND BALANCES June 30, 2007 Total - Special Debt Capital Governmental Revenue Service Projects Funds $ 9,283,347 $ 2,161,868 $ 2,453,956 $ 13,899,171 - 246,769 20,413,473 20,660,242 108,441 29,097 282,808 420,346 65,902 67,478 - 133,380 6,813,283 - 272,117 7,085,400 481,966 - 481,966 6,616,177 - 98,484 6,714,661 $ 23,369,116 $ 2,505,212 $ 23,520,838 $ 49,395,166 $ 32,511 $ - $ 10,509 $ 43,020 380,373 - 4,382 384,755 - - 15,000 15,000 6,464,987 125,000 6,589,987 6,877,871 - 154,891 7,032,762 769,385 - 83,621 853,006 - 2,505,212 - 2,505,212 6,616,177 - 98,484 6,714,661 8,757,387 - - 8,757,387 348,296 - 147,417 495,713 - - 23,036,425 23,036,425 16,491,245 2,505,212 23,365,947 42,362,404 $ 23,369,116 $ 2,505,212 $ 23,520,838 $ 49,395,166 t-I f~ 1 €1 i~ S~ a See independent auditors' report and notes to basic financial statements. i -10- I A P F 2 9 5 D D 11 [1 i.1 t_ TEMECULA REDEVELOPMENT AGENCY RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS June 30, 2007 Fund balances for governmental funds Amounts reported for governmental activities in the Statement of Net Assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds Long-term liabilities applicable to the Agency's governmental activities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term are reported in the Statement of Net Assets: Tax allocation bonds payable Bond discount Bond issue cost Compensated absences Advances from the City of Temecula Accrued interest. payable for the current portion of interest due on long-term liabilities has not been reported in the governmental funds Net assets (deficit) of governmental activities See independent auditors' report and notes to basic financial statements. -11- $ 42,362,404 3,892,960 (48,175,000) 218,664 414,326 (62,429) (1,784,551) (895,175) $ (4,028,801) TEMECULA REDEVELOPMENT AGENCY STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS For the year ended June 30, 2007 Total Special Debt Capital Governmental Revenue Service Projects Funds REVENUES: Tax increment revenue $ 3,126,735 $ 12,506,938 $ - $ 15,633,673 Investment and rental 533,237 88,875 627,351 1,249,463 Other 2,950,963 - 24,403 2 975 366 , , TOTALREVENUES 6,610,935 12,595,813 651,754 19,858,502 EXPENDITURES: Current: Community development 552,184 119,791 797,341 1,469,316 Capital outlay 3,488,305 - 116,524 3,604,829 Debt service: Principal retirement - 415,000 - 415,000 Interest and fiscal charges 1,537,145 1,537,145 Cost of issuance 421,009 421,009 Tax increment pass-throughs 8,778,831 8 778 831 , , TOTAL EXPENDITURES 4,040,489 11,271,776 913,865 16,226,130 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,570,446 1,324,037 (262,111) 3,632,372 OTHER FINANCING SOURCES (USES): Transfers in - - 2,600,000 2,600,000 Transfers out - (2,600,000) - (2,600,000) Capital debt issued - 893,523 20,251,477 21,145,000 Discount on debt issued - (222,191) - (222,191) TOTAL OTHER FINANCING SOURCES (USES) (1,928,668) 22,851,477 20,922,809 NET CHANGE IN FUND BALANCES 2,570,446 (604,631) 22,589,366 24,555,181 FUND BALANCES - BEGINNING OF YEAR, AS RESTATED 13,920,799 3,109,843 776,581 17,807,223 FUND BALANCES - END OF YEAR $ 16,491,245 $ 2,505,212 $ 23,365,947 $ 42,362,404 See independent auditors' report and notes to basic financial statements. -12- J 1 1 =A it fl TEMECULA REDEVELOPMENT AGENCY RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 0 P For the year ended June 30, 2007 Net change in fund balances - total governmental funds Amounts reported for governmental activities in the Statement of Activities are different because: The issuance of long-tern debt provides current financial resources to governmental funds, l while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is fast issued, whereas these amounts are deferred and amortized in the Statement of Activities. These amounts are the net effect of these differences in the treatment of long-term debt. Bond proceeds PI' Principal retirement Bond discount Bond issue costs l Net change in compensated absences n Governmental funds report capital outlays as expenditures. However, in the Statement of J( Activities, the cost of those assets is capitalized and allocated over the estimated useful lives as depreciation expense Some expenses reported on the Statement of Activities do not require the use of current L financial resources and therefore are not reported as expenditures in the governmental funds: Amortization of bond discount Amortization of bond issue costs Interest on advances from the City of Temecula Net change in accrued interest Change in net assets of governmental activities i~ (.1 See independent auditors' report and notes to basic financial statements. -13 it $ 24,555,181 (21,145,000) 415,000 222,191 421,009 (2,149) 1,130 (3,527) (6,683) (111,994) (325,215) $ 4,019,943 D p NOTES TO BASIC FINANCIAL STATEMENTS U l3 S~ i l P TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: History and Organization: The Temecula Redevelopment Agency (the Agency) was established during July 1991 pursuant to the State of California Health and Safety Code Section 33000, entitled "Community Redevelopment Law". The Agency acts as a legal entity, and the City Council of the City of Temecula (the City) functions as the Agency's governing board. The primary purpose of the Agency is to eliminate blighted areas by encouraging the development of residential, commercial, industrial, recreation and public facilities. ~-6 r~ ?a The Agency is a component unit of the City of Temecula. City Council members serve as the Executive Board of the Agency, and thus, the funds of the Agency have been included within the scope of the Comprehensive Annual Financial Report of the City of Temecula. The Agency office and records are located at City Hall, 43200 Business Park Drive, Temecula, California. i Measurement Focus, Basis of Accounting and Financial Statement Presentation: The basic financial statements of the Agency are composed of the following: • Government-wide financial statements " • Fund financial statements • Notes to the basic financial statements Financial reporting for the government-wide financial statements is based upon all GASB pronouncements, as well as the FASB Statements and Interpretations, APB Opinions, and Accounting Research Bulletins that were issued on or before November 30, 1989 that do not conflict with or contradict GASB pronouncement. FASB pronouncements issued after November 30, 1989 are not followed in the preparation of the accompanying financial statements. See independent auditors' report. -14- `r j TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): Government-wide Financial Statements: The government-wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the activities of the Agency. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The Temecula Redevelopment Agency has no business-type activities. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include 1) charges to customers who purchase, use, or directly benefit from goods, services, or privileges provided by a given function and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Fund Financial Statements: The accounting system of the Agency is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. Governmental resources are allocated to and accounted for in J individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. I~ Fund financial statements for the Agency's governmental funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental funds. The Agency has no nonmajor funds. See independent auditors' report. -15 l _1 , TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): Fund Financial Statements (Continued): The funds of the Agency, all of which are major funds are described below: Governmental Fund Tunes The Special Revenue Fund accounts for the monies set aside for low and moderate income housing projects. The Debt Service Fund accounts for the payment of interest and principal on long-term debt, and the accumulation of resources to finance debt service costs. The Capital Projects Fund accounts for the financial resources used in developing the project area, as well as the administrative expenditures incurred in sustaining Agency activities. Measurement Focus: Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. e a~ On the government-wide Statement of Net Assets and the Statement of Activities, activities are presented using the economic resources measurement focus. Under the economic resources q measurement focus, all (both current and long-term) economic resources and obligations of the government are reported. i~ In the fund financial statements, all governmental funds are accounted for on a spending or i "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balances (net current assets) are considered a measure of "available spendable resources". Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of available spendable resources during a period. See independent auditors' report. -16- `1 TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) l1 June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): (n~ Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): U Measurement Focus (Continued): ~j However special reporting treatments are used to indicate, noncurrent portions of long-term (1 receivables due to governmental funds are reported on their balance sheets in spite of their measurement focus and, that they should not be considered "available spendable resources", since l/ they do not represent net current assets. Recognition of governmental fund type revenue represented by noncurrent receivables are deferred until they become current receivables. Noncurrent portions of other long-term receivables are offset by fund balance reserve accounts. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transaction are recognized in accordance with the requirements of GASB Statement No. 33. Because of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect net current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities. Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability.. Amounts paid to reduce long-term indebtedness are reported as fund expenditures. When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources. Basis of Accounting: In the government-wide Statement of Net Assets and Statement of Activities, the governmental activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used, regardless of the timing of related cash flows. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. See independent auditors' report. -17- TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued): Basis of Accounting (Continued): In the fund financial statements, governmental funds are presented using the modified-accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined. Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. Revenue recognition is subject to the measurable and availability criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange transactions are recognized as revenues in the period for which they were imposed. If the period of use is not q~ specified, they are recognized as revenues when an enforceable legal claim to the revenues arises a or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met. Revenues accrued by the Agency include property taxes levied and collected within 60 days from the end of the fiscal year. i Budgetary Practices: In conjunction with the City's budgeting process, the Agency adopts annual operating budgets for ; the Special Revenue and Debt Service Funds that are on a basis consistent with accounting a principles generally accepted in the United States of America. The legal level of budgetary control, that is, the level at which expenditures cannot exceed appropriations, is the fund level for these funds. The Executive Director may transfer appropriations between departments within the same fund. All increases at the overall fund level must be approved by the Agency's Board. All unencumbered budget appropriations in the Special Revenue and Debt Service Funds automatically lapse at the end of the fiscal year. Capital projects are budgeted on a project-by-project basis in the Capital Projects Fund. Total Capital Projects expenditures may not exceed appropriations unless approved by the Agency's Board. Remaining appropriated amounts are carried forward in the Capital Projects Fund to each new fiscal year until such time as the projects are completed or terminated. See independent auditors' report. -18- S ~1 I J 0 TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): (j Encumbrances: Unexpended and unencumbered appropriations of the governmental funds automatically lapse at the end of the fiscal year. As of June 30, 2007 all encumbrances at year-end were closed. Unexpended appropriations are reencumbered in the following year after reconsideration, without lJ additional budget appropriations. Cash and Investments: The Agency's cash and investments are pooled for investment purposes. Investments are stated at !I fair value (quoted market price or the best available estimate thereof). Q Land Held for Resale: Land held for resale is carried in the capital projects fund at the lower of acquisition cost or E estimated net realizable value. The land values are re-appraised on a periodic basis and any t adjustments on the properties are shown in the capital projects fund statement of revenues, expenditures and changes in fund balance. r~ Capital Assets and Depreciation: Capital assets, which consist of land, buildings, machinery and equipment, and office furniture, are reported in the government-wide financial statements. Capital assets are defined by the Agency as assets with an initial cost of more than $5,000 and an estimated life in excess of 1 year. Such [ assets are recorded at historical cost or estimated historical cost if purchased or constructed. l.~ Donated capital assets are recorded at estimated fair market value at the date of donation. The Agency has no infrastructure assets. L 1 The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. U Deferred Revenue: Deferred revenue consists primarily of offsets to loans receivable, which are not currently available for expenditure. See independent auditors' report. -19- L~ TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED): Self-Insurance Program: The Agency participates in the self-insurance program of the City of Temecula. Information relating to the self-insurance program can be found in the notes to the basic financial statements of the City of Temecula. Property Taxes and Tax Increment Financing: The Agency's primary source of revenue comes from property taxes, referred to in the accompanying financial statements as "tax increment revenue". The assessed valuation of all property within each project area was determined on the date of adoption of the Project Area. Except for certain amounts provided by specific agreement (see Note 7), property taxes related to the incremental increase in assessed values after the adoption of the Project Area have been allocated to the Agency, while all property taxes on the "frozen" assessed valuation as of the adoption date have been allocated to the City and other districts. Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on July 1 and are payable in two installments on November 1 and February 1 and become delinquent on December 11 and April 11. The County bills and collects the property taxes and allocates installments to various jurisdictions throughout the year. The County is permitted by California State constitution, as amended, to levy taxes at 1% of full market value (assessed value). The growth in the full market value is limited to 2% annually and the value of new construction and improvements. The Agency receives a share of this basic levy resulting from incremental growth of the assessed value over a base value established when the Agency project area was formed or amended. Fund Balances: Fund balance reserves represent those portions of fund balances not appropriable for expenditure or legally segregated for a specific future use. Designated fund balances represent tentative plans for future use of financial resources. Use of Estimates: The preparation of basic financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions and affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the basic financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. See independent auditors' report. -20- J ai 3 ~l 3 i dl 4~ TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS: Cash and Investments Cash and investments at June 30, 2007 are classified in the accompanying financial statements as follows: Cash and investments $ 13,899,171 Cash and investments with fiscal agents 20,660,242 Total Cash and Investments 34.559.413 Investments Authorized by the California Government Code and the Agency's Investment Policy The table below identifies the investment types that are authorized for the Agency by the California Government Code (or the Agency's investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the Agency's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the Agency, rather than the general provisions of the California Government Code or the Agency's investment policy. Authorized Investment Type I l United States (U.S.) Treasury Obligations l.) U.S. Government Sponsored Enterprise Securities ( Banker's Acceptances L-~ Commercial Paper Negotiable Certificates of Deposit Repurchase Agreements L Local Agency Investment Fund (LAIF) Maximum Maturity 5 years 5 years 180 days 270 days 5 years 30 days N/A Maximum Percentage of Portfolio* None None 40% 15% 30% 50% None Maximum Investment in One Issuer None None 10% 10% None None None * - Excluding amounts held by bond trustee that are not subject to California Government Code restrictions. N/A - Not Applicable See independent auditors' report. -21- TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the Agency manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. l~ Information about the sensitivity of the fair values of the Agency's investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Agency's investments by maturity: Remaining Maturity (in Months) 12 Months 13 - 36 Investment Type or Less Months Total Held by Bond Trustee: a Money Market Mutual Funds $ 46,769 $ $ 46,769 Local Agency Investment Fund 20,413,473 - 20,413,473 U.S. Government Sponsored Enterprise Securities - FNMA - 200.000 200,000 20.460.242 200.000 20.660.242 See independent auditors' report. -22_ 'i TEMECULA REDEVELOPMENT AGENCY n NOTES TO BASIC FINANCIAL STATEMENTS J (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Disclosures Relating to Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating as required by (where applicable) the California Government Code, the Agency's investment policy, or debt agreements, and the actual rating, as reported by Standards and Poor, as of year end for each investment type: Investment Tyne Held by Bond Trustee: Money Market Mutual Funds Local Agency Investment Fund U.S. Government Sponsored Enterprise Securities - FNMA Total (1) Not Applicable Total Minimum as of Legal June 30, 2006 Rating $ 46,769 AAA 20,413,473 (1) 200.000 (2) $ 20.660.242 (2) Acceptable to the Municipal Bond Insurer AAA Unrated $ 46,769 $ - 20,413,473 200.000 246.769 20.413.473 Investments Authorized by Debt Agreements j Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Agency's investment policy. Investments authorized for funds held by bond trustee include, U.S. Treasury j Obligations, Commercial Paper, Local Agency Bonds, Banker's Acceptance, Money Market Mutual Funds and Investment Contracts. There were no limitations on the maximum amount that ` can be invested in one issuer, maximum percentage allowed or the maximum maturity of an investment, except for the maturity of Banker's Acceptance which are limited to one year. Investments in Investment Contracts have to be approved by the Municipal Bond Insurer. See independent auditors' report. -23- TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 2. CASH AND INVESTMENTS (CONTINUED): Custodial Credit Risk I Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the Agency's investment policy,do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits: The California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total tI amount deposited by the public agencies. California law also allows financial institutions to secure iJ Agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. i Disclosures Related to Interest Rate Risk, Credit Risk and Custodial Credit Risk The Agency's cash and investments are pooled with the City of Temecula's cash and investments. Additional disclosures regarding $13,899,171 pooled investments related to interest rate risk, credit risk and custodial credit risk are available in the City of Temecula's Comprehensive Annual Financial Report. 3. LAND HELD FOR RESALE: Land held for resale consists of property acquired by the Agency and held for resale. The property is carried in the Agency's Capital Projects Fund at the lower of cost or estimated net realizable value. The estimated net realizable value at June 30, 2007 is $6,714,661 with this amount offset by a reservation of fund balance. Certain properties held by the Agency have been leased to private parties with future options to purchase the land. See independent auditors' report. i. 24 1~ 0 TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) 61 June 30, 2007 (j 4. CAPITALASSETS: A summary of capital assets for the year ended June 30, 2007 is as follows: Balance at July 1, 2006 Balance at U As Restated Additions Deletions June 30, 2007 Capital assets, not being depreciated: Land $ 3.891.830 $ 1,130 $ $ 3,892,960 Capital assets, being depreciated: Office finniture and equipment 7 780 , 7,780 Less accumulated depreciation for: r, 1 1 Office furniture and equipment (7,780) _ (7 780) L1 Total capital assets, being depreciated Net Capital Assets 3,821,830 1.130 $ $ 3.892.960 5. LONG-TERM LIABILITIES: H Il A summary of changes in long-term liabilities for the year ended June 30, 2007 is as follows: Tax Allocation Bonds: 2002 TAB 2006 TAB Series A 2006 TAB Series B Less: bond discount Total TAB Compensated absences Advances from the City of Temecula Totals Balance at Balance at Due within July 1, 2006 Additions Deletions June 30 2007 One Year , $ 27,445,000 $ - $ (415,000) $ 27,030,000 $ 430,000 - 18,105,000 18,105,000 325,000 3,040.000 3.040.000 27,445,000 21,145,000 (415,000) 48,175,000 755,000 (222.191) 3.527 (218 664) , 27,445,000 20,922,809 (411,473) 47,956,336 755,000 60,279 2,149 62,428 - 1,672,558 111.994 1,784.552 $ 29.177,837 21.036.952 (411.473) 49 803 316 5 0 j See independent auditors' report. -25- TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): 2002 Tax Allocation Bonds Payable: In April of 2002 the Redevelopment Agency of the City of Temecula issued $28,055,000 of 2002 Tax Allocation Bonds consisting entirely of current interest bonds. The proceeds from the bonds were used to refund the Agency's Redevelopment Project No. 1 1993 Series A Tax Allocation Bonds, discharge an obligation pursuant to the County Pass-Through Agreement of the Agency to the County of Riverside, finance redevelopment activities within or of benefit to the Project Area and provide for the costs of issuing the 2002 Bonds, including the premium for the financial guaranty insurance policy and Debt Service Reserve Surety Bond. A portion of the proceeds from the sale of the 2002 Bonds, together with certain funds made available through the defeasance of the refunded bonds, were deposited in trust with an escrow agent to provide the remaining debt service payments on the refunded debt. The trust invests solely in direct obligations of the United States Government. The advanced refunding met the requirements of an in-substance defeasance. The Project 1993 bonds were removed from the RDA's long-term debt. The amount of defeased debt outstanding was called on June 10, 2002. The 2002 Tax Allocation Bonds consist of. 1) $9,030,000 of Serial Bonds with annual interest rates ranging from 3.0% to 5.0%, maturing on August 1 of each year beginning in 2003 through 2020 in amounts ranging from $95,000 to $755,000; 2) $6,485,000 of 5.125% Term Bonds due August 1, 2027 and 3) $12,540,000 of 5.250% Term Bonds due August 1, 2036. The outstanding balance of the Bonds as of June 30, 2007 is $27,030,000. The future debt service requirements on the 2002 Tax Allocation Bonds are as follows: Year Ending June 30, 2008 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 2028-2032 2033-2037 Principal $ 430,000 445,000 465,000 485,000 505,000 2,860,000 3,610,000 4,620,000 5,940,000 7,670,000 $ 27.030.000 Interest $ 1,345,816 1,328,316 1,310,117 1,291,116 1,271,064 5,992,821 5,221,352 4,181,706 2,824,356 1,047,900 25,814.564 Total $ 1,775,816 1,773,316 1,775,117 1,776,116 1,776,064 8,852,821 8,831,352 8,801,706 8,764,356 8,717,900 52.844.564 See independent auditors' report. -26- H di i) ~J 9 (1 i (1 a TEMECULA REDEVELOPMENT AGENCY p~ NOTES TO BASIC FINANCIAL STATEMENTS ( ~ (CONTINUED) H June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): ~J 2006 Tax Allocation Bonds Series A and Series B Payable: D In December 2006, the Redevelopment Agency of the City of Temecula issued $18,105,000 2006 Tax Allocation Bonds Series A and $3,040,000 2006 Tax Allocation Bonds Series B. The a proceeds of the bonds will be used to finance redevelopment activities within or of benefit to the Project Area, provide for the costs of issuing the 2006 Bonds, including the premium for a financial guaranty insurance policy for the Series A Bonds and the Series A Debt Service Reserve Surety ll Bond and establish a reserve account for the Series B Bonds. The 2006 Series A Bonds consist of. 1) $6,345,000 of Serial Bonds with annual interest rates ranging from 4.0% to 4.2%, maturing on August 1 of each year beginning in 2007 through 2020 in amounts ranging from $325,000 to $460,000; 2) $2,600,000 of 4.25% Term Bonds due August 1, 2030, 3) $3,945,000 of 4.5% Term Bonds due August 1, 2036 and 4) $5;215,000 of 4.5% Term Bonds due August 1, 2038. The outstanding balance of the Series A Bonds as of June 30, 2007 is $18,105,000. The 2006 Series B Bonds consist of 1) $885,000 of Serial Bonds with annual interest rates ranging from 3.95% to 4.85%, maturing on December 15 of each year beginning in 2010 through 2022 in amounts ranging from $50,000 to $90,000; 2) $390,000 of 5.0% Term Bonds due j December 15, 2026 and 3) $1,765,000 of 5.0% Term Bonds due December 15, 2038. The outstanding balance of the Series B Bonds as of June 30, 2007 is $3,040,000. The future debt service requirements on the 2006 Tax Allocation Bonds Series A are as follows: Year Ending ~ f- June 30. Principal Interest Total 2008 $ 325,000 $ 772,736 $ 1,097,736 2009 235,000 761,536 996,536 2010 245,000 751,936 996,936 2011 250,000 742,037 992,037 2012 260,000 731,836 991,836 2013-2017 1,490,000 3,488,781 4,978,781 2018-2022 1,810,000 3,159,581 4,969,581 2023-2027 2,205,000 2,751,826 4,956,826 2028-2032 2,710,000 2,233,031 4,943,031 2033-2037 3,360,000 1,564,875 4,924,875 2038-2039 5,215,000 237.263 5,452,263 18.105.000 17.195.438 35.300.438 See independent auditors' report. -27- TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 5. LONG-TERM LIABILITIES (CONTINUED): 2006 Tax Allocation Bonds Series A and Series B Payable (Continued): The future debt service requirements on the 2006 Tax Allocation Bonds Series B are as follows: Year Ending June 30, 2008. 2009 2010 2011 2012 2013-2017 2018-2022 2023-2027 2028-2032 2033-2037 2038-2039 Compensated Absences: Principal 50,000 55,000 305,000 385,000 480,000 615,000 780,000 370.000 3.040.000 -28- Interest $ 147,681 147,681 147,681 146,694 144,606 686,054 607,889 503,183 367,625 193,750 18,750 Total $ 147,681 147,681 147,681 196,694 199,606 991,054 992,889 983,183 982,625 973,750 388,750 3.111.594 6.151.594 The liability as of June 30, 2007 in the amount of $62,428 represents the total unpaid vacation and compensation time earned by employees of the Agency. Advances from the City of Temecula: The Agency has received advances of $1,784,552 from the City of Temecula, inclusive of accrued interest as of June 30, 2007. 6. INTERFUND TRANSFERS: Transfers: Transfers of $2,600,000 were made from the Debt Service Fund to the Capital Projects Fund to cover operating expenditures in the Capital Projects Fund. See independent auditors' report. H 1 H 3 I L3 TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) t l June 30, 2007 7. PASS-THROUGH AGREEMENTS: The Agency has entered into agreements with various governmental entities to "pass-through" O portions of tax increments received to entities, which are located within the Agency's project areas. Tax incremental revenues passed through to other agencies during fiscal year 2007 totaled $8,778,831. O 8. AFFORDABLE HOUSING GRANT AND LOAN AGREEMENTS: The Agency sponsors a program to help first time home buyers afford a home in Temecula. This program is called the First Time Buyers Program. It provides a 3'0-year second mortgage at 5% interest to qualified buyers. The maximum assistance is 20% of the purchase price plus closing costs up to a maximum of $24,000. The loan is deferred for the first 5 years, and then fully amortized in years 6 to 30. The balance due the RDA at June 30, 2007 is $40,246 with $24,400 deferred and $15,846 being amortized. The Agency also sponsors a home improvement loan program. Under this program qualified Ll residents may borrow up to $5,000 at 5% interest for up to five years. The loan is only made to t( fund certain repairs. The program contains provisions allowing the loans to be forgiven at the end of the five year term if those provisions are not breached. As of June 30, 2007 the RDA was owed r 1 $590,072 under this program. The Agency has a note receivable in the amount of $3,000,000 from D'Alto Partners LLC, a California Limited Liability Company (the LLC). The funds were loaned to the LLC under an Owner Participation Agreement (the OPA) under which the LLC was to develop and operate a mixed used development including providing affordable housing. The note is secured as second trust deed for a term of 55 years and will be forgiven if there are no violations of the covenants of j the OPA. If there is a violation of covenants of the OPA, the Agency can require full payment of the principal. J The Agency has a note receivable in the amount of $2,615,000 from 28,500 Pujol Street, a California Limited Partnership (the Partnership). The funds were loaned to the Partnership under a Disposition and Development Agreement (the DDA) dated in 2003 under which the Partnership developed affordable housing. The note is due 55 years from the date of the note (August 1, 2004) with interest accrued at a rate of 3%. Fifty percent of the residual receipts as defined in the DDA for each calendar year are due March 15 of the following year. Any residual receipts are to be applied to the payment of accrued interest on the note. Any unpaid interest is added to the note. As of June 30, 2007, the total due from the Partnership amounted to $2,850,545 which included $235,545 of accrued interest. See independent auditors' report. i -29- 1 TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 9. COMMITMENTS AND CONTINGENCIES: Claims and Judgments: At June 30, 2007, the Agency was a defendant in a number of lawsuits arising in the ordinary dl course of operations, which allege liability on the part of the Agency in connection with workers compensation and general liability matters. Management believes that potential losses relating to these lawsuits will not materially affect the financial position of the Agency. 10. NO COMMITMENT DEBT: On April 25, 1996, the Redevelopment Agency of the City of Temecula issued $2,427,500 of Multifamily Housing Revenue Bonds. The proceeds of the issuance were loaned to the Coachella Valley Housing Coalition (the `Borrower"), a California nonprofit public benefit corporation, to t enable the Borrower to acquire and rehabilitate a 150-unit multifamily housing rental apartment development located in the City. A portion of the housing units is rented to persons of very low income. The Borrower makes loan payments to the trustee, an assignee of the Agency, of amounts sufficient to pay in full all principal and interest due on the bonds. The bonds are a special obligation of the Agency payable solely, from revenues of the Borrower and other funds pledged i pursuant to the trust indenture. At June 30, 2007 these bonds had an outstanding balance of $1,457,500. On July 17, 1998 the Redevelopment Agency of the City of Temecula borrowed $5,800,000 from Washington Mutual Bank, FA. The proceeds were loaned to Temecula Gardens LP (the 3 J `Borrower"), a California limited partnership, to assist the Borrower in the acquisition of land, acquisition and rehabilitation of an existing multi-family housing rental project consisting of 38 units and related appurtenant facilities located on such land, and construction of an additional 38 housing units and related appurtenant facilities located on such site. All of the housing units are to be rented exclusively to persons or families of very low or lower income. The financing has received a bond volume allocation from the California Debt Limit Advisory Commission. The loan is payable solely from project revenues (which include an annual Redevelopment Agency contribution). The loan is secured by a pledge of project revenues, and deed of trust encumbering Temecula Gardens, LPs leasehold interest in the project site. At June 30, 2007 these bonds had an 1 outstanding balance of $5,260,920. The RDA only acts as an agent in respect to these revenue bonds and notes. It does not have any obligation to pay these debts. See independent auditors' report. t_ 30 i~ TEMECULA REDEVELOPMENT AGENCY NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED) June 30, 2007 11. RESTATEMENTS TO NET ASSETS/BEGINNING FUND BALANCES: Net Assets, As Restated: Net assets (deficit) as previously reported June 30, 2006 $ (5,594,815) Increase in capital assets for expenditures not capitalized in prior years 216,904 Reduction in capital assets for land capitalized incorrectly (2,181,000) Reduction for capital assets for land sold in prior years (489.8331 Net assets (deficit) as restated June 30, 2006 (8.048.744) Fund Balances, as Restated: Special Revenue Fund Fund balances as previously reported June 30, 2006 $ 9,959,527 Capital assets reclassified to land held for resale 3,744,368 Increase in land held for resale for costs not capitalized previously 216,904 Fund balances as restated June 30, 2006 13.920.799 12. SUBSEQUENT EVENT: On October 17, 2007, the Agency issued the 2007 Tax Allocation Bonds in the amount of $15,790,000. Proceeds from the bonds will be used to finance redevelopment projects, establish a reserve account, fund capitalized interest with respect to a portion of the 2007 bonds to June 15, 2010 and provide for costs of issuing the 2007 Bonds. Interest on the 2007 bonds will be payable semi-annually on each June 15 and December 15 commencing June 15, 2008 with principal due annually on December 15, commencing December 15, 2010 through December 15, 2038. See independent auditors, report. -31- it D REQUIRED SUPPLEMENTARY INFORMATION D a D D D it iI TEMECULA REDEVELOPMENT AGENCY BUDGETARY COMPARISON SCHEDULE RDA LOW AND MODERATE INCOME HOUSING SPECIAL REVENUE FUND For the year ended June 30, 2007 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) REVENUES: Tax increment revenue $ 2,822,210 $ 2,972,818 $ 3,126,735 $ 153,917 Investment and rental 226,000 226,000 533,237 307,237 Other 45,000 2,734,646 2,950,963 216,317 TOTALREVENUES 3,093,210 5,933,464 6,610,935 677,471 EXPENDITURES: Current: Community development 1,016,418 1,044,767 552,184 492,583 Capital outlay 9,595,295 2,995,722 3,488,305 (492,583) TOTAL EXPENDITURES 10,611,713 4,040,489 4,040,489 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (7,518,503) 1,892,975 2,570,446 677,471 FUND BALANCE - BEGINNING OF YEAR, AS RESTATED 13,920,799 13,920,799 13,920,799 - FUND BALANCE - END OF YEAR $ 6,402,296 $ 15,813,774 $ 16,491,245 $ 677,471 See independent auditors' report. -32- OTHER SUPPLEMENTARY INFORMATION TEMECULA REDEVELOPMENT AGENCY COMPUTATION OF LOW/MODERATE INCOME HOUSING FUND-EXCESS SURPLUS July 1, 2006 OPENING FUND BALANCE - JULY 1, 2006 AS RESTATED LESS UNAVAILABLE AMOUNTS: Land held for resale Notes receivable AVAILABLE LOW/MODERATE INCOME HOUSING FUNDS L] IITATION (GREATER OF $1,000,000 OR FOUR YEARS SET-ASIDE): Set-aside for last four years: 2005 - 2006 2004-2005 2003-2004 2002 - 2003 TOTAL SET-ASIDE FOR LAST FOUR YEARS Base limitation GREATER AMOUNT COMPUTED EXCESS SURPLUS - JULY 1, 2006 See independent auditors' report. $ 3,091,658 2,532,770 2,379,316 2,189,970 $ 10,193,714 $ 1,000,000 All Project Areas $ 13,920,799 (3,961,272) (940,523) 9,019,004 10,193,714 -33- DIEHL, EVANS & COMPANY, LLP © CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS A PARTNERSW INCLUDING ACCOUNTANCY CORPORATIONS i' 2121 ALTON PARKWAY, SUITE 100 IRVINE, CALIFORNIA 92606-0956 (949) 399-0600 • FAX (949) 399-0610 www.diehleva xoln October 17, 2007 A9CHAEL R LUOIN, CPA - CRAIG W. SPRAM, CPA NITIN P- PATE, CPA ROBERTL CALWNAN, CPA NIBLiP H. HOLTKAMP, CPA '1HOMAS NL PERLOWSRL CPA 'HARVEY I. SCBROEDER, CPA KR1*XHI R AMPS, CPA •APPpFPS4I0NALCOR MMGN t~ INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS D The Board of Directors Temecula Redevelopment Agency n Temecula, California ~J We have audited the financial statements of the governmental activities and each major fund of the Temecula Redevelopment Agency (the Agency) as of and for the year ended June 30, 2007, which ~J collectively comprise the Agency's basic financial statements and have issued our report thereon dated October 17, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government t i Auditing Standards issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the Agency's internal control over financial t } reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on t 1 the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Agency's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Agency's internal control over financial reporting. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Agency's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Agency's financial statements that is more than inconsequential will not be prevented or detected by the Agency's internal control. I OTHER OFFICES AT: -34- 2965 ROOSEVELT STREET 613 W. VALLEY PARKWAY, SUITE 330 CARLSBAD, CALD'ORNLA 92008-2389 ESCONDIDO, CALIFORNIA 92025-2598 (760) 729-2343 • FAX (760) 729-2234 (760) 741-3141 • FAX (760) 741-9890 Internal Control Over Financial Reporting (Continued) lid A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be 11 prevented or detected by the Agency's internal control. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. Compliance and Other Matters H As part of obtaining reasonable assurance about whether the Agencys financial statements are free of ~ material misstatements, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. Such provisions included those provisions of laws and regulations identified in the Guidelines For Compliance Audits of California Redevelopment Agencies, issued by the State Controller and as interpreted in the Suggested Auditing Procedures for Accomplishing Compliance Audits of California Redevelopment Agencies, issued by the Governmental Accounting and Auditing Committee of the California Society of Certified Public Accountants. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of the Temecula Redevelopment Agency Directors and management of the Temecula Redevelopment Agency and the State Controllers Office, Division of Accounting and Reporting and is not intended to be and should not be used by anyone other than these specific parties. Cd~nn ~'~W _ J / LET'" 1 r -35- i. r PUBLIC HEARING ITEM NO. 17 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: January 08, 2008 SUBJECT: Weed Abatement Lien Resolution for FY 2007-2008 RECOMMENDATION: That the City Council Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENT AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF HAZARDOUS VEGETATION FOR THE FISCAL YEAR 2007-2008 BACKGROUND: The City of Temecula is responsible for weed abatement for properties that are not cleared of hazardous weeds during the spring and summer abatement season. The City contracts with local weed abatement specialists to bring parcels with hazardous conditions into compliance with the Temecula Municipal Code. The owners of these parcels are billed by the City to recover the costs of the contractor plus an administrative fee. If the owners do not respond to the billing request, the City is required to place a lien on the property to recover the costs. The lien process requires that a public hearing be held before the City Council to take comments from the property owners with respect to the costs proposed to be assessed against their properties and to confirm those costs. Following the public hearing, the Council must adopt a resolution for the Fiscal Year which: • Confirms the cost incurred by the City in performing the weed abatement work • Provides that the actual abatement costs will become a lien upon the properties, and upon recordation, in the amount of the costs shown on the attached Exhibit "A" Provides that the Resolution will be transmitted to the Riverside County Treasurer-Tax Collector so the amounts of the assessment can be entered upon the parcels as they appear on the assessment rolls and the costs will be collected on the property tax bill Staff is requesting Council action for the Fiscal Year 2007-2008. With the Council's positive action, staff will forward the adopted Resolutions to our consultant for placement with the Riverside County Treasurer-Tax Collector. FISCAL IMPACT: The recording of these liens will enable the City to recover abatement costs through the County's property tax collection system. The City will recover the line item budgeted amounts paid out to the weed abatement contractors. Further, the City will recover the administrative fee placed on each parcel that was abated by the City's contractors. The City will recover $8,562.50 for the 07-08 Fiscal Year. ATTACHMENTS: Resolution No. 08- Exhibit "A" Abatement Charges for the Fiscal Year 2007-2008 RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF HAZARDOUS VEGETATION FOR THE FISCAL YEAR 2007-2008 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Chapter 8.16 of the Temecula Municipal Code provides for expedited abatement of hazardous vegetation from vacant lots and parcels. Section 2. Abatement of hazardous vegetation has been completed for each of the parcels as described in the attached list of parcels (Exhibit "A"), at a cost equal to the costs of abatement and removal of hazardous vegetation on each parcel. Section 3. Public hearings were held concerning the cost of abatement of these parcels and the Council heard all objections of property owners liable to be assessed for the cost of abatement. Section 4. The list of parcels and costs of abatement and removal of hazardous vegetation for each parcel is hereby reconfirmed and said costs shall constitute special assessments against the respective parcels of land, and are a lien of said land in the amount of the respective assessments. Section 5. A copy of this resolution shall be transmitted to the Treasurer-Tax Collector who shall enter the amounts of the respective assessments against the respective parcels of land as they appear in the current assessment roll, and shall collect said assessments at the same time in the same manner as ordinary municipal ad valorem taxes as provided in Section 39577 of the Government Code. Section 6. The costs against any parcel of land listed in Exhibit "A" assessed by this resolution and the lien created thereby shall be deemed discharged and released upon the payment for said parcel of the property taxes for the tax year above- noted. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [S EAL] STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 08- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8th day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Resolution No. 08 - Exhibit "A" Abatement Charges for Fiscal Year 2007-2008 Weed Abatement Cycle Parcel Number Owner of Record Amount 920-110-005 TSENG LIN SHU YIN 721.00 921-030-016 HEINZELMANN ALFRED W 267.50 921-030-017 HEINZELMANN ALFRED W 267.50 921-060-044 TEMECULAS ELITE 259.45 921-060-046 TEMECULAS ELITE 290.05 921-060-053 TEMECULAS ELITE 339.35 921-382-005 MEDEL GEORGE L 267.50 921-480-044 PECHT THOMAS P 538.15 921-480-045 PECHT THOMAS P 882.95 922-110-013 OCEAN ATLANTIC/CORNERSTONE 466.00 922-110-014 OCEAN ATLANTIC/CORNERSTONE 432.00 922-190-013 EL DORADO HOMES 426.90 944-290-022 MUTHASEB NAYEF R 630.45 957-170-034 ANDU 517.00 957-170-035 ANDU 521.25 957-170-036 ANDU 537.40 961-010-049 LA BELLA VIDA LP 600.30 961-010-050 LA BELLA VIDA LP 597.75 TOTAL 8,562.50 ITEM NO. 18 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Debbie Ubnoske, Director of Planning DATE: January 8, 2008 SUBJECT: Abatement Lien Resolution for FY 2007-2008 RECOMMENDATION: That the City Council Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF A BEE HIVE AND DRAINING OF TWO GREEN POOLS FOR THE FISCAL YEAR 2007-2008 BACKGROUND: The following is the background of three separate forced abatements that were performed in the interest of public safety and protection: The forced abatement at 30310 Calle Sonora, Temecula, CA 92592 is in regards to a dangerous bee hive infestation inside a wall next to the chimney at this location. This was a situation where a next door neighbor made continuous complaints and desperate pleas to Code Enforcement requesting us to have their neighbor remove the bee hive. The next-door neighbor has two small grandchildren who are highly allergic to bee stings. From November 2, 2005 to August 15, 2006, we attempted to gain compliance from the property owner, Alicia Goldstein, through personal contact, telephone calls, warning notices, and repeated citations under Temecula Municipal Code 8.12.020(U): It is unlawful and it is declared to be a public nuisance for any person owning, leasing, occupying or have charge or control of any property within the city, to maintain such property or cause such propertyto be maintained in a manner that any of the following conditions are found to exist: To maintain property containing an infestation of termites, insects, vermin or rodents. South County Pest Control offered on two separate occasions to have her bee infestation exterminated for free. However, Miss Goldstein chose to ignore our warnings, citations, and free offer of extermination, and stated more than once to two officers, "I'm tired of removing bees and I am not going to remove them anymore." It was at this point that the City Attorney's Office made a final decision and requested Code Enforcement to obtain a court ordered warrant, which would allow the City to forcibly remove the bee hive for the safety of the next door neighbor and the public at large. A court ordered abatement warrant was issued bythe Honorable Judge Michael S. Hider, Riverside County Superior Court, and was served by the City of Temecula Code Enforcement Division and then executed by both Temecula Code Enforcement and South County Pest Control. Miss Goldstein has been billed by the City of Temecula to recover the costs of the contractor, actions required from the City Attorney's Office, and all administrative fees that were incurred by the necessary actions taken by City personnel. Since Miss Goldstein has not responded to the billing request, the City is required to place a lien on the property to recover the costs. The next two forced abatements were a result of neglected pools posing a health threat to the public: • At 45771 Corte Rodrigo the home was in the foreclosure process and Code Enforcement was unable to gain compliance from the current property owner. Numerous complaints were received from the next door neighbor, including a doctor's report from the next door neighbor indicating she had received mosquito bites and had been prescribed antibiotics. It was the determination of the City Attorney's Office to obtain a court ordered abatement warrant to drain the pool and protect the public from a mosquito infestation, and the possibility of a Nile virus in western Riverside County that was repo Department. • At 43723 Calabro Street this situation involved a vacant home in foreclosure where the side gate had fallen down due to dry rot of the main posts. The backyard was now unsecured and posed an immediate threat and danger to the public. Per the policy of the City Attorney's Office we took immediate action under exigent circumstances and had the pool drained by an outside approved contractor for the safety of the public. These two properties are being billed bythe Cityof Temecula to recoverthe costs of the contractor, actions required from the City Attorney's Office, and all administrative fees thatwere incurred bythe necessary actions taken by City personnel. Because neither property owner has not responded to the billing request, the City is required to place a lien on the property to recover the costs. The lien process requires that a public hearing be held before the City Council to take comments from the property owners with respect to the costs proposed to be assessed againsttheir properties and to confirm those costs. Following the public hearing, the Council must adopt a resolution for the Fiscal Year which: • Confirms the cost incurred by the City in performing the necessary forced abatement work • Provides that the actual abatement costs will become a lien upon the properties, and upon recordation, in the amount of the costs shown on the attached Exhibit "A" • Provides that the Resolution will be transmitted to the Riverside County Treasurer-Tax Collector so the amounts of the assessment can be entered upon the parcels as they appear on the assessment rolls and the costs will be collected on the property tax bill Staff is requesting Council action for the Fiscal Year 2007-2008. With the Council's positive action, staff will forward the adopted Resolutions to our consultants for placementwith the Riverside County Treasurer-Tax Collector. FISCAL IMPACT: The recording of these liens will enable the City to recover abatement costs through the County's property tax collection system. The City will recover the line item budgeted amounts paid out to the weed abatement contractors, further, the Citywill recover and administrative fee places on each parcel that was abated by the City's contractors. The City will recover $20,507.80 for the 07-08 Fiscal Year. ATTACHMENTS: Resolution No. 08- Exhibit "A" Abatement Charges for the Fiscal Year 2007-2008 RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ORDERING CONFIRMATION OF THE SPECIAL ASSESSMENTS AGAINST PARCELS OF LAND WITHIN THE CITY OF TEMECULA FOR COSTS OF ABATEMENT AND REMOVAL OF A BEE HIVE AND DRAINING OF TWO GREEN POOLS FOR THE FISCAL YEAR 2007-2008 THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Chapter 8.16 of the Temecula Municipal Code provides for expedited abatement from vacant lots and parcels. Section 2. Abatement of a bee hive and two green pools has been completed for each of the parcels as described in the attached list of parcels (Exhibit "A"), at a cost equal to the costs of abatement and removal of hazardous vegetation on each parcel. Section 3. Public hearings were held concerning the cost of abatement of these parcels and the Council heard all objections of property owners liable to be assessed for the cost of abatement. Section 4. The list of parcels and costs of abatement is hereby reconfirmed and said costs shall constitute special assessments against the respective parcels of land, and are a lien of said land in the amount of the respective assessments. Section 5. A copy of this resolution shall be transmitted to the Treasurer-Tax Collector who shall enter the amounts of the respective assessments against the respective parcels of land as they appear in the current assessment roll, and shall collect said assessments at the same time in the same manner as ordinary municipal ad valorem taxes as provided in Section 39577 of the Government Code. Section 6. The costs against any parcel of land listed in Exhibit "A" assessed by this resolution and the lien created thereby shall be deemed discharged and released upon the payment for said parcel of the property taxes for the tax year above- noted. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [S EAL] STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 08- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8th day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk Resolution No. 08 - Exhibit "A" Abatement Charges for Fiscal Year 2007-2008 Nuisance Abatements Assessor Parcel Number Situs Address Abatement Costs 962-081-043 45771 Corte Rodrigo $3,245.75 944-131-014 30310 Calle Sonora $14,251.05 959-202-057 43723 Calabro Street $3,011.00 Total $20,507.80 ITEM NO. 19 Approvals City Attorney Director of Finance City Manager CITY OF TEMECULA AGENDA REPORT TO: City Manager/City Council FROM: Genie Roberts, Director of Finance DATE: January 08, 2008 SUBJECT: Addition of Water Quality Management Plan (WQMP) Fees to the Citywide User Fee Schedule PREPARED BY: Polly von Richter, Financial Analyst RECOMMENDATION: That the City Council 1. Adopt a resolution entitled: RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING WATER QUALITY MANAGEMENT PLAN (WQMP) FEES TO THE CITYWIDE USER FEE SCHEDULE BACKGROUND: In July 1990, the City Council adopted Resolution No. 90-81, providing a Consolidated Schedule of Fees for Land Use and Related Functions for Planning, Public Works and the Fire Department that were consistent with the fees charged by Riverside County. Building Fees were based on the International Conference of Building Officials (ICBO) and corresponding authority's method of calculating fees. Based on a study conducted by the Cordoba Corporation, the City Council adopted Resolution No. 93-46 in June 1993 adding new user fees to the already existing fees and repealing Resolution No. 90-81. In August 2002, the City contracted with Maximus, Inc. to conduct a detailed cost of services study of user fee activities throughout the City. User fee services are those services performed by a governmental agency on behalf of a private citizen or group. The assumption underlying most fee recommendations is that the costs of services benefiting individuals - and not society as a whole - should be borne by the individual receiving the benefit. At great length, staff worked closely with Maximus to determine the full cost, including all applicable direct and indirect costs, associated with providing each service. As a result of the study, a new Citywide User Fee Schedule was approved by Council on May 25, 2004. Subsequent minor modifications and revisions were made by resolution to include fees that were omitted, correct minor clerical errors and address changes in business practices. Overtime, staff has identified the need to clarify some of the existing fee items and add some new fee items in some departments. To address these minor changes, the City contracted with Matrix Consulting Group to conduct a minor fee study update. Matrix staff conducted individual department interviews and guided staff in the collection of time and volume estimates. Whenever possible, Matrix used existing documentation from the previous study as the basis to clarify or add fees so as to preserve the integrity of the original study. Since Information Systems was not included in the original study, current budgetary information was used in this update. The study produced results allowing for cost recovery in Information Systems, Planning, Public Works, Fire and Community Services. The results included new fees, increases to existing fees, and conversion of fees from deposit-based or hourly rate to flat fees. All of the fees would affect new construction and, in some cases, would affect existing construction projects as well. At this time, staff recommends only one of the changes calculated in the update. In Public Works, the Water Quality Management Plan plan check and inspection fees are currently collected on a deposit-based system. Costs fortime and materials are posted to the deposit as work is done. The flat fee approach proposed here will create no new fiscal impact to the development community, but will streamline our administrative process. The fees proposed in this study were calculated using actual time data collected by staff over the past two years. Although not a part of the User Fee Study Update, two other issues related to the collection of user fees need to be addressed. In certain situations when there is no mechanism in place to charge a user fee, the City can recover costs associated with providing services by charging an hourly rate. The hourly rate that should be charged is dependent on the staff member performing the work. Because a fully burdened rate depends on an employee's salary, benefits, and indirect costs, which change over time, an hourly rate for a particular service may also change over time. For this reason, hourly rates should be calculated as needed by Finance staff. Finally, some types of work can be referred out to external consultants depending on staff work load. Because the need for consultants is not constant, our user fee schedule should be modified to indicate that the user fee is for staff costs, but when an outside consultant is used, the cost for providing the service will be at the rates set forth in the consultant contract in effect at the time service is provided. FISCAL IMPACT: There is a minimal fiscal impact. The action related to the WQMP fees is a change in collection methodology that results in a negligible change in revenues. The actions related to hourly or consultant rates only serve to allow for full cost recovery when other collection mechanisms are not in place. ATTACHMENTS: Resolution No. 08- User Fee Study Update - Final Report RESOLUTION NO. 08- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ADDING WATER QUALITY MANAGEMENT PLAN (WQMP) FEES TO THE CITYWIDE USER FEE SCHEDULE THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council finds, determines and declares that: a. The State of California Government Code Section 66014 et.al. allows local agencies to charge fees for various activities as long as those fees do not exceed the estimated reasonable cost of providing the service for which the fee is intended. b. The City Council of the City of Temecula adopted Resolution No. 90-81, a Consolidated Schedule of Fees for Land Use and Related Functions on July 24, 1990 that were consistent with the fees charged by Riverside County. C. The City Council amended the user fees by Resolution No. 93-46 on June 8, 1993 to incorporate certain revisions to the existing fee schedule to correct obvious inequities per the Cordoba Corporation study. d. The City Council approved Resolution 04-56 on May 25, 2004 establishing and imposing new Citywide user fees effective July 1, 2004 and repealing Resolution No. 93-46. e. The City Council approved Resolutions No. 04-72 on June 22, 2004, No. 04-109 on October 26, 2004, No. 05-13 on January 25, 2005, No. 05-16 on February 8, 2005 and No. 05-101 on September 27, 2005 making minor modifications and revisions to include fees that were omitted, correct minor clerical errors and address changes in business practices. f. On May 1, 2007, the City entered into an agreement with Matrix Consulting Group to conduct a minor User Fee Study Update to include only certain departments that needed to add certain fee items, primarily for new services, or would benefit from minor modifications to fee items in the fee schedule. g. Matrix Consulting Group calculated changes to or addition of specific fees in the User Fee Study Update for the following departments: Information Systems, Planning, Public Works, Fire and Community Services. h. After thorough review of the study, staff determined that only one set of new fees, the Water Quality Management Plan (WQMP) plan check and inspection fees, should be implemented. These flat-rate fees will replace the current deposit- based system. The WQMP fees are proposed at a 100% cost recovery rate. i. Because hourly rates are dependent on costs that change over time, hourly rates may be calculated and updated by Finance staff using the salary, fringe benefit and indirect costs incurred at the time services are provided. j. The cost for functions that can be performed by external consultants shall be at rates set forth in the consultant contract in effect at the time services are provided. Section 2. User fees shall be subject to an automatic annual adjustment on July 1 of each year based on the Consumer Price Index (CPI)-AII Urban Consumers- Los Angeles, Riverside, and Orange County-CA for the twelve month period prior to April 1 of the year in which the change will be effective. The City Manager is authorized to implement the CPI adjustment each year without further action of the City Council. Section 3. The City Council hereby adopts the new fees as set forth in Exhibit A, attached hereto and incorporated herein as though set forth in full, subject to the CPI adjustment each year on July 1, beginning in 2008, as described in Section 2 of this Resolution. Section 4. The fees described in Exhibit A shall be effective March 10, 2008. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 8th day of January, 2008. Michael S. Naggar, Mayor ATTEST: Susan W. Jones, MMC City Clerk [S EAL] STATE OF CALIFORNIA } COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA } I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 08- was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 8th day of January, 2008, by the following vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: Susan W. Jones, MMC City Clerk RESOLUTION NO. 08-XX EXHIBIT A USER FEE STUDY UPDATE NEW FEES Effective March 10, 2008 Department and Fee Name Fee at 100% Full Cost (Per unit) Public Works WQMP P/C 0-5 ACRES $ 1,132 WQMP P/C 5.01 -10 ACRES $ 1,303 WQMP PIC 10.01 - 15 ACRES $ 1,660 WQMP P/C 15.01 > ACRES $ 1,874 WQMP INSP 0-5 ACRES $ 470 WQMP INSP 5.01 - 10 ACRES $ 500 WQMP INSP 10.01 - 15 ACRES $ 602 WQMP INSP 15.01 > ACRES $ 633 Final Report on the User Fee Study Update CITY OF TEMECULA, CALIFORNIA matrix consulting group 721 Colorado Avenue, Suite 101 Palo Alto, CA 94303 v.650.858.0507 f.650.858.0509 October 23, 2007 CITY OF TEMECULA Final Report on the User Fee Study Update TABLE OF CONTENTS October 23, 2007 Page EXECUTIVE SUMMARY LEGAL FRAMEWORK AND POLICY CONSIDERATIONS USER FEE METHODOLOGY 12 4. SUMMARY OF RESULTS BY DEPARTMENT 16 CITY OF TEMECULA Final Report on the User Fee Study Update 1. EXECUTIVE SUMMARY The report, which follows, presents the results of the User Fee Study Update conducted by the Matrix Consulting Group for the City of Temecula. This report provides the City with the findings and conclusions resulting from the analysis of several revisions and additions to the City's existing Master Fee Schedule. 1. PROJECT BACKGROUND AND SCOPE OF WORK In 2004, the City completed a Citywide User Fee Analysis. The purpose of this analysis was two-fold: • To calculate the full cost of providing services for each department involved in the analysis; and, • To provide Temecula's City Council with the resulting cost of services information in order to adopt and set policy regarding charges for service to the public, otherwise known as "user fees". The results of this study were adopted in May of 2004 as the City's current Master Fee Schedule. Since adoption in 2004, the fee schedule has been updated annually using a CPI factor. Currently, the City wishes to update its Master Fee Schedule with some clarifications to selected existing fee items, as well as some minor additions of new fees for services. In support of this initiative, the Matrix Consulting Group was retained by the City to analyze the cost of service relationships that exist between fees for service activities. Similar to the original Citywide User Fee Analysis, the results of this Update provide a tool for understanding current service levels, the cost and demand for those services, and what fees for service can and should be charged. Matrix Consulting Group Page 1 CITY OF TEMECULA Final Report on the User Fee Study Update The City provided a list of fees from the following departments, to be considered within the scope of this analysis: • Information Systems • Planning • Public Works • Community Services • Fire Not all departments included in the original Citywide User Fee Analysis are included in the list above (Building and Safety and Police did not have any changes or additions). In addition, fees for the Information Systems Department were not part of the previous study. Because of the City's recent completion of a study in 2004, the City did not wish to undergo a full cost of service analysis to the degree of the original study. Rather, the City requested to either use existing documentation from that study as a basis to clarify and/or add fees for service; or, to modify the Master Fee Schedule without affecting the validity of the original study. Since the Information Systems Department was not included in the original study, the Matrix Consulting Group performed a complete cost of service analysis in this area. With the exception of the Information Systems component, this User Fee Study analysis is an "update" to the original Citywide User Fee Analysis study adopted in 2004. It is not a comprehensive cost of services analysis, which would typically utilize the most current operating budget data and staffing levels available. Through this study, Matrix Consulting Group Page 2 CITY OF TEMECULA Final Report on the User Fee Study Update the Matrix Consulting Group determined the total cost of providing selected fee related services, as requested by the departments involved in the study. 2. GENERAL PROJECT APPROACH AND METHODOLOGY The methodology employed by the previous analysis in establishing the full cost of providing services is a widely known and accepted "bottom up" approach to cost analysis, where time spent per unit of fee activity is determined for each position within a department. Once time spent for a fee activity is determined, all applicable City costs are then considered in the calculation of the full cost of providing each service. As discussed in more detail in Chapter 3 of this report, typical costs included in a full cost calculation are as follows: Cost Component Description Direct Salaries, benefits and allowable departmental expenditures. Departmental Overhead Departmental administration / management and clerical support. Citywide Overhead City costs associated with central service costs such as payroll, human resources, budgeting, city management, etc. Often established through a cost allocation methodology or plan (In this case, the City is responsible for providing these costs). Cross-Departmental Support Costs associated with review or assistance in providing specific services. For example, costs established via study of the Planning Department for review of Building permits are included as overhead to building permit fees. Off-budget items General Plan Update, code enforcement, and technology related costs. Because the Matrix Consulting Group also uses a "bottom up" approach to a cost of service (user fee) analysis, the project team was able to consider modifications and additions to the City's current adopted Master Fee Schedule without deviating from the original Citywide User Fee Analysis' approach. The work accomplished by the Matrix Matrix Consulting Group Page 3 CITY OF TEMECULA Final Report on the User Fee Study Update Consulting Group in the analysis of the proposed fees for service involved the following ste ps: • Initial Interviews: Key project management staff for the City of Temecula were interviewed to solidify the mutual understanding of the objectives of this study and potential issues with the implementation of user fees. • Initial Data Collection: The previous Citywide User Fee Analysis' documentation was obtained and reviewed by the project team. All previous data components were converted into the Matrix Consulting Group's user fee analytical software model, including all budgetary, staffing level, time estimate, and volume of activity assumptions utilized in the previous study. • Departmental Staff Interviews: The project team interviewed staff in each department regarding their needs for clarification to the structure of existing fee items, or for addition of new fee items. Data was collected for each item, including, time estimates and volume of activity. • Cost Analysis: The project team added all new data to the structure of the previous analyses, and ensured that the integrity of the original study was not compromised. The project team produced a completely new analytical model for the Information Systems Department. • Review and Approval of Results with City Staff: Because the analysis of fees for service is based on estimates and information provided by City departments, it is extremely important that all participants are comfortable with our methodology and with the data they have provided. Departments and City Management have reviewed and approved these documented results. In the detailed report, which follows, the full cost of services for items included in the Study are presented from both a unit and annual cost perspective. A more detailed description of user fee methodology and policy considerations are provided in the Chapter 2 of this report. 3. SUMMARY OF RESULTS The following is a summary of the results of the User Fee Study Update for the City of Temecula. The table below presents the full cost of providing each fee-related Matrix Consulting Group Page 4 CITY OF TEMECULA Final Report on the User Fee Study Update service included in the study, and compares that 100 percent full cost calculation to the City's current fee for service (where applicable). Current Fee Department and Fee Name I Deposit - Fee at 100% per unit - Full Cost - per unit - Information Services AERIAL MAP 25 74 TOPO MAP 60 98 AERIAL + TOPO MAP 75 98 Planning SIGN PROG AMND - MINOR - 488 SIGN PROG AMND- MAJOR - 1,562 MSHCP (CITY) - DIET. - 100 MSHCP (CITY) - HANS ADD'L FEE - 600 PRE APPL - DEPOSIT LEVEL - 922 SUBSQ. - DEV PLN-NEW >100K sf - 1,466 SUBSQ. - DEV PLN-NEW 10-100K - 1,319 SUBSQ. - DEV PLN-NEW <10Ksf - 798 SUBSQ. - PLND DEV OVERLAY - 4,970 SUBSQ. - TENT TRCT MP 5-34 LT - 1,355 SUBSQ. - TENT TRCT MP 35-75LT - 1,405 SUBSQ. - TNT TRCT MP 76-165 - 1,647 SUBSQ. - TNT TRCT >166 LTS - 1,811 SUBSQ. - VST TNT TRCT 5-34 LT - 1,675 SUBSQ. - VST TNT TRCT 35-75 - 1,732 SUBSQ. - VST TNT TRCT 76-165 - 1,981 SUBSQ. - VST TNT TRCT >166 LT - 2,088 SUBSQ. - PARCEL MAP RES - 545 SUBSQ. PARCEL MAP COMM - 642 SUBSQ. SIGN PROG. - 474 Public Works EXCVTN PMT (BASE) 125 208 UTILITY CO. PMT/MONTH 100 307 UTILITY BLANKET PMT 1 25 1,332 EXCVTN/STRT XING PMT (PER 100 LF) - 724 EXCVT/PARALLEL PMT (PER 100 LF) - 290 WQMP P/C 0-5 ACRES** 1,625 1,132 WQMP P/C 5.01 - 10 ACRES** 1,898 1,303 WQMP P/C 10.01 - 15 ACRES - 1,660 WQMP P/C 15.01 > ACRES** 2,169 1,874 WQMP INSP 0-5 ACRES - 470 WQMP INSP 5.01 - 10 ACRES - 500 WQMP INSP 10.01 - 15 ACRES - 602 WQMP INSP 15.01 > ACRES - 633 Matrix Consulting Group Page 5 CITY OF TEMECULA Final Report on the User Fee Study Update epartment and Fee Name Current Fee / Deposit - per unit - Fee at 100% Full Cost - per unit - Fire Department RES ALRM PULL STAT P/C - 102 RES ALRM PULL STAT INSP - 118 COMPLAINT - 54 FIRE SAFETY INSP - 46 KNOX BOX - 52 TAMPER VALVE - 52 Community Services ADV ENERGY ADM IN (1 - 25 poles/lights) - 44 ADV ENERGY ADM IN (>26 poles/lights) - 59 **Because Public Works' WQMP Plan Check fees were previously based on a deposit / time and materials billing basis, the current fees shown in the table above for WQMP Plan Check are based on averages collected for typical projects and do not represent a standard flat fee for service. For all services studied, the Matrix Consulting group identified a subsidy provided to the fee-payer, where either the current fee charged is lower than the full cost of providing each service, or no fee is charged at all. The display of 100 percent cost recovery levels for each fee above is meant to provide a basis for policy development discussions among City staff and Council members, and does not represent a recommendation for where the Council should set each fee. The setting of the "rate" or "price" for services, whether at 100 percent full cost recovery or lower, is a decision to be made only by the City Council, often with input from City staff. Common reasons for adopting fees at less than 100 percent of full cost recovery are presented in Chapter 2 of this report. The project team combined and annualized the costs for each service by using estimates of activity volume provided by City staff. The table below identifies the potential annual revenue impacts associated with the implementation of fees at 100 percent of full cost: Matrix Consulting Group Page 6 CITY OF TEMECULA Final Report on the User Fee Study Update Annual Annual Department Revenue at Revenue at Current Fee - 100 /o Full Cost Recovery - Information Services 2,350 4,924 Planning Department - 30,735 Public Works 47,361 72,770 Community Services - 645 Fire Department - 4,100 Total 49,711 113,174 In the cases of the Planning, Community Services, and Fire departments, the services included in this Study do not have current charges for service, thus no information is provided in the "Annual Revenue at Current Fee" column. At full cost recovery, the potential additional revenue obtained from implementing these revised and/or additional fees for services is approximately $63,000 above what is currently collected for these services. The remainder of this report provides a detailed discussion of the approach, methodology, and departmental results of the Matrix Consulting Group study. Matrix Consulting Group Page 7 CITY OF TEMECULA Final Report on the User Fee Study Update 2. LEGAL FRAMEWORK AND POLICY CONSIDERATIONS A "user fee" is a charge for services provided by a governmental agency to a public citizen or group. In California, several constitutional laws such as Propositions 13, 4 and 218, State Government Codes 66012 and 66014, and more recently the Attorney General's Opinion 92-506 set the parameters under which the user fees typically administered by local government are established and administered. 1. GENERAL PRINCIPLES AND PHILOSOPHIES REGARDING USER FEES Local governments are providers of many types of general services to their communities. While all services provided by local government are beneficial to constituents, some services can be classified as globally beneficial to all citizens, while others provide more of a direct benefit to a specific group or individual. The following table provides examples of services provided by local government within a continuum of the degree of community benefit received: Services that Provide Both Services that Provide a "Global" Benefit and also a Primary Benefit to an Services that Provide General Specific Group or Individual Individual or Group, with less "Global" Community Benefit Benefit "Global" Community Benefit • Police • Recreation /Community • Building Permits • Park Maintenance Services • Planning and Zoning • Fire Suppression Approval • Site Plan Review • Engineering Development Review Funding for local government is obtained from a myriad of revenue sources such as taxes, fines, grants, special charges, user fees, etc. In recent years, alternative tax revenues, which typically offset subsidies for services provided to the community, have Matrix Consulting Group Page 8 CITY OF TEMECULA Final Report on the User Fee Study Update become increasingly limited. These limitations have caused increased attention on user fee activities as a revenue source that can offset costs otherwise subsidized (usually) by the general fund. In the table above, services in the "global benefit" section tend to be funded primarily through voter approved tax revenues. In the middle of the table, one typically finds a mixture of taxes, user fee, and other funding sources. Finally, in the "individual / group benefit" section of the table, lie the services provided by local government that are typically funded almost entirely by user fee revenue. The following are two central concepts regarding the establishment of user fees: • Fees should be assessed according to the degree of individual or private benefit gained from services. For example, the processing and approval of a land use or building permit will generally result in monetary gain to the applicant, whereas Police services and Fire Suppression are examples of services that are essential to the safety of the community at large; and, • A profit making objective should not be included in the assessment of user fees. In fact, California laws require that the charges for service be in direct proportion to the costs associated with providing those services. Once a charge for service is assessed at a level higher than the actual cost of providing a service, the term "user fee" no longer applies. The charge then becomes a tax subject to voter approval. Therefore, it is commonly accepted that user fees are established at a level that will recover up to, and not more than, the cost of providing a particular service. 2. GENERAL POLICY CONSIDERATIONS REGARDING USER FEES Undoubtedly, there are programs, circumstances, and services that justify a subsidy from a tax based or alternative revenue source. However, it is essential that jurisdictions prioritize the use of revenue sources for the provision of services based on the continuum of benefit received. Within the services that are typically funded by user fees, the Matrix Consulting Group recognizes several reasons why City staff or Council may not advocate the full Matrix Consulting Group Page 9 CITY OF TEMECULA Final Report on the User Fee Study Update cost recovery of services. The following factors are key policy considerations in setting fees at less than 100 percent of cost recovery: • Limitations posed by an external agency. The State or other agency will occasionally set a maximum, minimum, or limit the jurisdiction's ability to charge a fee at all. Examples include Transportation Permits commonly issued by Public Works departments, many types of Police records and processing fees, as well as charging for time spent copying and retrieving public documents in the City Clerk's office. • Encouragement of desired behaviors. Keeping fees for certain services below may provide a better compliance from the community. For example, if the cost of a permit for changing a water heater in a residential home is higher than the cost of the water heater itself, many citizens will avoid pulling the permit. • Affect on demand for a particular service. Sometimes raising the "price" charged for services might reduce the number of participants in a program. This is largely the case in Recreation programs such as aquatics or sports leagues, where participants often compare the City's fees to surrounding jurisdictions or other options for leisure activities. • Participation for individuals or groups that typically cannot afford services. Policy makers may decide to fully subsidize or set fees at a level that will allow participation for certain segments of the community, such as Senior programs. • Benefit received by user of the service and the community at large is mutual. Many services that directly benefit a group or individual equally benefit the community as a whole. Examples include Recreation programs, Planning Design Review, historical dedications and certain types of special events, to name a few. The Matrix Consulting Group recognizes the need for policy that intentionally subsidizes certain activities. The primary goals of a User Fee Study are to provide a fair and equitable basis for determining the costs of providing services, and assure that the City is in compliance with State law. Once the full cost of providing services is known, the next step is to determine the "rate" or "price" for services at a level which is up to, and not more than the full cost amount. Council is responsible for this decision, which often becomes a question of Matrix Consulting Group Page 10 CITY OF TEMECULA Final Report on the User Fee Study Update balancing service levels and funding sources. The placement of a service or activity within the continuum of benefit received may require extensive discussion and at times fall into a "grey area". However, with the resulting cost of services information from a User Fee Study, the Council can be assured that the adopted fee for service is reasonable, fair, and legal. Matrix Consulting Group Page 11 CITY OF TEMECULA Final Report on the User Fee Study Update 3. USER FEE STUDY METHODOLOGY The Matrix Consulting Group utilizes a cost allocation methodology, commonly known and accepted as the "bottom-up" approach to establishing User Fees. The term means that several cost components are calculated for each fee or service. These components then build upon each other to comprise the total cost for providing the service. The components of a full cost calculation are typically as follows: Cost Component Description Direct Salaries, benefits and allowable departmental expenditures. Departmental Overhead Departmental administration / management and clerical support. Citywide Overhead City costs associated with central service costs such as payroll, human resources, budgeting, city management, etc. Often established through a cost allocation methodology or plan (City is responsible for providing these costs). Cross-Departmental Support Costs associated with review or assistance in providing specific services. For example, costs established via study of the Planning Department for review of Building permits are included as overhead to building permit fees. Off-budget items General Plan Update, code enforcement, and technology costs. The general steps utilized by the project team to determine allocations of cost components to a particular fee or service are: • Develop time-estimates for each service included in the study; • Calculate the direct cost attributed to each time estimate; • Utilize the comprehensive allocation of staff time to establish an allocation basis for the other cost components; and, • Distribute the appropriate amount of the other cost components to each fee or service based on the staff time allocation basis, or other reasonable basis. The result of these allocations provides detailed documentation for the reasonable estimate of the actual cost of providing each service. The following are Matrix Consulting Group Page 12 CITY OF TEMECULA Final Report on the User Fee Study Update critical points about the use of time estimates and the validity of cost allocation models. 1. TIME ESTIMATES ARE A MEASURE OF SERVICE LEVELS REQUIRED TO PERFORM A PARTICULAR SERVICE One of the key study assumptions utilized in the "bottom up" approach is the use of time estimates for the provision of each fee related service. Utilization of time estimates is a reasonable and defensible approach, especially since these estimates were developed by experienced staff members who understand service levels and processes unique to the City of Temecula. The project team worked closely with the City's staff in developing time estimates with the following criteria: • Estimates are representative of average times for providing service. Extremely difficult or abnormally simple projects are excluded from the analysis; • Estimates provided by staff are reviewed and approved by the department, and often involve multiple iterations before a Study is finalized; • Estimates are reviewed by the project team for "reasonableness" against their experience with other agencies. The Matrix Consulting Group agrees that while the use of time estimates is not a perfect approach, it is the best alternative available for setting a standard level of service for which to base a jurisdiction's fees for service, and it meets the requirements of California law. The alternative to time estimating is actual time tracking, often referred to billing on a "time and materials" basis. Except for in the case of anomalous or sometimes very large and complex projects, the Matrix Consulting Group believes this approach not to be cost effective or reasonable for the following reasons: • Accuracy in time tracking is compromised by the additional administrative burden required to track, bill, and collect for services in this manner; Matrix Consulting Group Page 13 CITY OF TEMECULA Final Report on the User Fee Study Update • Additional costs are associated with administrative staff's billing, refunding, and monitoring deposit accounts; • Customers often prefer to know the fees for services in advance of applying for permits or participating in programs; • Applicants may begin to request assignment of faster or less expensive personnel to their project; • Departments can better predict revenue streams and staff needs using standardized time estimates and anticipated permit volumes. Situations arise where the size and complexity of a given project warrants time tracking and billing on a "time and materials" basis. However, the Matrix Consulting Group discourages this practice whenever possible. 2. CROSS CHECKS ENSURE THE VALIDITY OF OUR ANALYTICAL MODEL In addition to the collection of time estimate data for each fee or service included in the User Fee Study, annual volume of activity data assumptions are also a critical component. By collecting data on the estimated volume of activity for each fee or service, a number of analyses are performed which not only provide useful information to departments regarding allocation of staff resources, but also provide valuable cross checks that ensure the validity of each cost allocation model. This includes assurance that 100% of staff resources are accounted for and allocated to a fee for service, or "other non fee" related category. Since there are no objectives to make a profit in establishing user fees, it is very important to ensure that services are not estimated at a level that exceeds budgeted resource capacity. If at least and not significantly more than 100% of staff resources are accounted for, then no more than 100% of costs associated with providing services will be allocated to individual services in the Study. Matrix Consulting Group Page 14 CITY OF TEMECULA Final Report on the User Fee Study Update 4. SUMMARY OF RESULTS BY DEPARTMENT The motivation behind a cost of services (User Fee) analysis is for the City Council and staff to maintain services at a level that is both accepted and effective for the community, and also to maintain control over the policy and management of these services. This chapter presents a summary of results for each department involved in the User Fee Study Update. 1. IMPORTANT POINTS TO NOTE REGARDING AN UPDATE VERSUS A COMPREHENSIVE STUDY The scope of this User Fee Study was intended as an update to a previous analysis and not as new comprehensive study. Therefore, data from the previous Citywide User Fee Analysis that was adopted in 2004 was utilized whenever possible. In doing so, the integrity of staff allocations and cost assumptions utilized in the previous study were preserved, while still allowing for needed revisions to the structure and assumptions of existing fees for service, as well as for the addition of several new fees for service. The Matrix Consulting Group's project team converted the adopted 2004 analytical models used for the Community Services, Fire, Planning and Public Works Departments into its User Fee Study software. The project team then added or revised a minimum number of variables such as fee names or time estimates. None of the additions or revisions to these analytical models for the departments listed above produced more than a 3% difference from the original cost calculations of the 2004 Analysis. The project team believes that this approach is defensible, reasonable and does not compromise the integrity of the original study for the following reasons: Matrix Consulting Group Page 15 CITY OF TEMECULA Final Report on the User Fee Study Update • The use of time estimates for time to complete a particular service, for annual activity levels, etc., are exactly that, estimates. The use of estimates allows for a reasonable margin of change and uncertainty. Original staff allocations, and resulting cost allocations adopted under the previous study have not been significantly altered. • 100% of staff resources are still allocated and accounted for as providing either a fee for service or "non-fee related" activity. Because all subsequent cost component allocations are based on the level of effort identified in the staff allocations, this ensures that no excessive over allocations of cost are occurring, and that the fees are not structured to make a profit. Utilization of existing data from the 2004 Study also poses another issue related to the use of fiscal year 2003/2004 budget information as a basis for establishing cost components, rather than the most current budget year data. Since the adoption of the Master Fee Schedule in May of 2004, the Council adopted a policy to use CPI factors for annual fee increases. These increases have occurred in July 2005, 2006, and 2007 To keep cost increase considerations congruent with City policy for fee increases, the Matrix Consulting Group applied CPI factors to the results for each department that was included in the 2004 Analysis. It is the City's intent to undergo another Citywide analysis within the next one to three years. At that time, all fees for service will be updated with current budget information, a revisit to time estimates and volume of activity assumptions, and review of cross departmental costs and off budget expenses. In the absence of a comprehensive study, the methodology described above is an appropriate, defensible, and legal approach to making changes to the existing Master Fee Schedule in anticipation of a comprehensive study in the near future. Matrix Consulting Group Page 16 CITY OF TEMECULA Final Report on the User Fee Study Update 2. IMPORTANT POINTS TO NOTE REGARDING DEPARTMENTS NOT INCLUDED IN THE ORIGINAL CITYWIDE ANALYSIS For the Information Systems Department, fiscal year 2006/2007 budget and staffing data were utilized as the basis for the full cost of service calculations. These two departmental studies were preformed as comprehensive analyses, and followed the steps discussed in the previous chapters of this report to gather original data. 3. SUMMARY OF INDIVIDUAL DEPARTMENTAL RESULTS The following are brief descriptions of each department's results. The cost calculation results are presented first on a "per unit" basis, comparing the full cost of providing each unit of service to the current fee for each unit of service (where applicable). Second, the results of the cost calculations are annualized and combined to demonstrate the potential revenue impacts of adopting such fees. The project team utilized volume of activity estimates to project annual subsidies and revenue impacts associated with the implementation of the fees below. However, it should be noted that the results are not a precise measurement. Changes to the structure of fee names, along with the use of time estimates allow only for a reasonable projection of subsidies and revenue. Consequently, the Council and staff should rely conservatively upon these estimates to gauge the impact of implementation going forward. In addition, the departmental descriptions below are intended as summaries of extensive and voluminous cost allocation documentation for each department's analytical model. The full analytical results were provided to the City staff under separate cover from this summary report. Matrix Consulting Group Page 17 CITY OF TEMECULA Final Report on the User Fee Study Update For most fee related services, the Matrix Consulting Group recommends setting fees at 100% cost recovery. However, as discussed in Chapter 2 of this report, several political, and economic policy factors often warrant adoption of fee levels at less than 100%. (1) Information Systems The Information Systems department wished to study the costs of producing aerial and topographic maps upon public request. The following are the per unit cost calculation results for Information System's fee for service activities: Current Fee I Deposit - per unit Fee at 100% Fee Name Full Cost - AERIAL MAP 25 74 TOPO MAP 60 98 AERIAL + TOPO MAP 75 98 The following table demonstrates the potential annual revenue impacts of adopting the proposed Information Services fees at 100 percent cost recovery levels. Revenue at 100% Full Revenue at Cost Current Fee Recovery- Fee Name -Annual AERIAL MAP 1,000 2,963 TOPO MAP 600 980 AERIAL + TOPO MAP 750 980 TOTAL 2,350 4,924 The results of the analysis identified an overall subsidy provided to the public for the production of aerial and topographic maps. Matrix Consulting Group Page 18 CITY OF TEMECULA Final Report on the User Fee Study Update (3) Planning The Planning Department requested the addition of several fees to their schedule, including Sign Program Amendments and MSHCP review. In addition, the Department studied the cost of providing subsequent review for various types of development plan and tract map review. Subsequent review fees reflect the processing and review time associated with reviews above and beyond service levels considered in the original fee determinations for each relevant item. For example, the City's current level of service for a Development Plan submittal includes an initial submittal, plus two re-submittal reviews for corrections and approval of plans. If additional submittals of plans are required beyond two re-submittals that do not significantly alter the scope of the original project, the Subsequent Review fees apply. The following are the full cost calculation results for proposed Planning Department fees: Fee Name Fee at 100% Full Cost - SIGN PROG AMND - MINOR 488 SIGN PROG AMND - MAJOR 1,562 MSHCP (CITY) - DET. 100 MSHCP (CITY) - HANS ADD'L FEE 600 PRE APPL - DEPOSIT LEVEL 922 SUBSQ. - DEV PLN-NEW >100K sf 1,466 SUBSQ. - DEV PLN-NEW 10-100K 1,319 SUBSQ. - DEV PLN-NEW <10K sf 798 SUBSQ. - PLND DEV OVERLAY 4,970 SUBSQ. - TENT TRCT MP 5-34 LT 1,355 SUBSQ. - TENT TRCT MP 35-75LT 1,405 SUBSQ. - TNT TRCT MP 76-165 1,647 SUBSQ. - TNT TRCT >166 LTS 1,811 SUBSQ. - VST TNT TRCT 5-34 LT 1,675 Matrix Consulting Group Page 19 CITY OF TEMECULA Final Report on the User Fee Study Update Fee Name Fee at 100% Full Cost - SUBSQ. - VST TNT TRCT 35-75 1,732 SUBSQ. - VST TNT TRCT 76-165 1,981 SUBSQ. - VST TNT TRCT >166 LT 2,088 SUBSQ. - PARCEL MAP RES 545 SUBSQ. PARCEL MAP COMM 642 SUBSQ. SIGN PROG. 474 The following table demonstrates the potential annual revenue impacts of adopting the proposed Planning fees at 100 percent cost recovery levels. ee Name Revenue at 100% Full Cost Recovery - SIGN PROG AMND - MINOR 2,442 SIGN PROG AMND - MAJOR 1,562 MSHCP (CITY) - DET. 1,300 MSHCP (CITY) - HANS ADD'L FEE 600 PRE APPL - DEPOSIT LEVEL 922 SUBSQ. - DEV PLN-NEW >100K sf 1,466 SUBSQ. - DEV PLN-NEW 10-100K 1,319 SUBSQ. - DEV PLN-NEW <10K sf 798 SUBSQ. - PLND DEV OVERLAY 4,970 SUBSQ. - TENT TRCT MP 5-34 LT 1,355 SUBSQ. - TENT TRCT MP 35-75LT 1,405 SUBSQ. - TNT TRCT MP 76-165 1,647 SUBSQ. - TNT TRCT >166 LTS 1,811 SUBSQ. - VST TNT TRCT 5-34 LT 1,675 SUBSQ. - VST TNT TRCT 35-75 1,732 SUBSQ. - VST TNT TRCT 76-165 1,981 SUBSQ. - VST TNT TRCT >166 LT 2,088 SUBSQ. - PARCEL MAP RES 545 SUBSQ. PARCEL MAP COMM 642 SUBSQ. SIGN PROG. 474 TOTAL 30,735 The services studied for the Planning Department do not have existing charges for service on the City's Master Fee Schedule, thus no information is provided in Matrix Consulting Group Page 20 CITY OF TEMECULA Final Report on the User Fee Study Update regards to current fees per unit or current annual revenue. As demonstrated by the tables, the City is currently providing a subsidy to fee payers for the services listed above. (4) Community Services Community Services wished to identify the cost of administering advance energy assessments to developers. The Advance Energy Administration fees for service are intended to recover for the processing time associated with determining the amount of pass through energy costs a developer is responsible for during the next fiscal year. The following table demonstrates the per unit full cost calculation results of the proposed Community Services fees: Fee Name Fee at 100% Full Cost - ADV ENERGY ADMIN (1 - 25 poles/lights) 44 ADV ENERGY ADM IN (>26 poles/lights) 59 The following table demonstrates the potential annual revenue impacts of adopting the proposed Community Services fees at 140 percent cost recovery levels: Revenue at 100% Full Cost Recovery - Fee Name ADV ENERGY ADM IN (1 - 25 poles/lights) 528 ADV ENERGY ADM IN (>26 poles/lights) 117 645 The services studied for Community Services do not have existing charges for service on the City's Master Fee Schedule, thus no information is provided in regards to current fees per unit or current annual revenue. Matrix Consulting Group Page 21 CITY OF TEMECULA Final Report on the User Fee Study Update (5) Public Works Updates to the original Public Works analysis included several revisions to existing fees, as well as the conversion of WQMP plan check and inspection fees from a deposit based, time and materials billing system to a flat fee approach. In determining time estimates for the WQMP fees, the department provided estimates based on averages of time tracking completed for various projects since 2004. The following table demonstrates the per unit full cost calculation results of the proposed Public Works fees: ee Name Current Fee / Deposit Fee at 100% Full Cost - EXCVTN PMT (BASE) 125 208 UTLITY CO. PMT/MONTH 100 307 UTLITY BLANKET PMT 1 25 1,332 EXCVTN/STRT XING PMT (PER 100 LF) - 724 EXCVT/PARALLEL PMT (PER 100 LF) - 290 WQMP P/C 0-5 ACRES** 1,625 1,132 WQMP P/C 5.01 - 10 ACRES** 1,898 1,303 WQMP P/C 10.01 - 15 ACRES - 1,660 WQMP P/C 15.01 > ACRES** 2,169 1,874 WQMP INSP 0-5 ACRES - 470 WQMP INSP 5.01 - 10 ACRES - 500 WQMP INSP 10.01 - 15 ACRES - 602 WQMP INSP 15.01 > ACRES - 633 -Because WQMP Plan Check fees were previously based on a deposit / time and materials billing basis, the current fees shown in the table above for WQMP Plan Check are based on averages collected for typical projects and do not represent a standard flat fee for service. Matrix Consulting Group Page 22 CITY OF TEMECULA Final Report on the User Fee Study Update The following table demonstrates the potential annual revenue impacts of adopting the proposed Public Works Department fees at 100 percent cost recovery levels: ee Name Revenue at Current Fee- Annual Revenue at100% Full Cost Recovery- EXCVTN PMT (BASE) 14,875 24,765 UTLITY CO. PMT/MONTH 4,800 14,725 UTLITY BLANKET PMT 1 50 2,663 EXCVTN/STRT XING PMT (PER 100 LF) - 724 EXCVT/PARALLEL PMT (PER 100 LF) - 290 WQMP P/C 0-5 ACRES 17,875 12,453 WQMP P/C 5.01 - 10 ACRES 7,592 5,214 WQMP P/C 10.01 - 15 ACRES - 1,660 WQMP P/C 15.01 > ACRES 2,169 1,874 WQMP INSP 0-5 ACRES - 5,166 WQMP INSP 5.01 - 10 ACRES - 2,001 WQMP INSP 10.01 - 15 ACRES - 602 WQMP INSP 15.01 > ACRES - 633 TOTAL 47,361 72,770 For inspection services related to the issuance of permits for Excavation work in the public right of way, charges are assessed utilizing a base fee to recover administrative processing and review, followed by a per lineal foot charge to recover for City inspection depending on the size of the project performed. Because estimating the time for inspection on a per lineal foot basis would be difficult to conceptualize and provide, for purposes of analysis, the project team utilized a project size of 100 lineal feet in order to gather average inspection time estimate data. The following table divides the cost of services established per 100 lineal feet by the base of 100 lineal feet to estimate a charge that can be assessed on a per lineal foot basis: Matrix Consulting Group Page 23 CITY OF TEMECULA Final Report on the User Fee Study Update Fee at 100% Fee per 11. Full Cost per at 100% 100 if Full Cost - Fee Name Increment EXCVTN/STRT XING PMT (PER 100 LF) 724 7 EXCVT/PARALLEL PMT (PER 100 LF) 290 3 The Department and City Council may adopt the fee as a charge per increment of 100 lineal feet. Or, the fee may be administered on a per lineal foot basis, as demonstrated above. (6) Fire Department Updates to the original Fire Department fee analysis included several minor additions of fees for service. The table below displays the full cost calculations for all services analyzed on a per unit basis: Fee Name Fee at 100% Full Cost - RES ALR M PU LL STAT P/C 102 RES ALRM PULL STAT INSP 118 COMPLAINT 54 FIRE SAFETY INSP 46 KNOX BOX 52 TAMPER VALVE 52 The following table demonstrates the potential annual revenue impacts of adopting the proposed Fire Department fees at 100 percent cost recovery levels: ee Name Revenue at 100% Full Cost Recovery - RES ALR M PULL STAT P/C 205 RES ALRM PULL STAT INSP 236 COMPLAINT 54 FIRE SAFETY INSP 1,107 KNOX BOX 1,249 TAMPER VALVE 1,249 TOTAL 4,100 Matrix Consulting Group Page 24 CITY OF TEMECULA Final Report on the User Fee Study Update The Fire Department currently does not have charges for these services in a flat fee for service structure as listed above. Matrix Consulting Group Page 25