city of el centroas management of the city of el centro, we offer readers of the city of el...

City of El Centro

For The Year Ended June 30, 2008

Comprehensive Annual Financial Report

CITY OF EL CENTRO COMPREHENSIVE ANNUAL FINANCIAL REPORT

Fiscal Year Ended June 30, 2008

TABLE OF CONTENTS

I. INTRODUCTORY SECTION

Letter of Transmittal. I Certificate ofAchievement for Excellence in Financial Reporting 6 Organization Chart 7 Principal Officials 8

II. FINANCIAL SECTION

A. Independent Auditor's Report 9 B. Management's Discussion and Analysis 11 C. Basic Financial Statements:

Government-wide Financial Statements: Statement of Net Assets 23 Statement of Activities 24

Fund Financial Statements: Governmental Funds:

Balance Sheet 25 Reconciliation of the Balance Sheet of Governmental Funds

to the Statement ofNet Assets 26 Statement of Revenues, Expenditures, and Changes in Fund Balances 27 Reconciliation of the Statement of Revenues, Expenditures, and

Changes in Fund Balances of Governmental Funds to the Statement of Activities 28

Proprietary Funds: Statement ofNet Assets 29 Statement of Revenues, Expenses, and Changes in Net Assets 30 Statement of Cash Flows 31

Fiduciary Funds: Statement of Fiduciary Net Assets 32 Statement of Changes in Fiduciary Net Assets 33

Notes to Basic Financial Statements 34

D. Required Supplementary Information: General Fund - Schedule of Revenues, Expenditures, and Changes in

Fund Balance - Budget and Actual 71



TABLE OF CONTENTS

II. FINANCIAL SECTION (Continued)

E. Other Supplemental Information

Schedule of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual- Major Governmental Fund 74

Redevelopment Agency Capital Projects Fund 75

Nonmajor Governmental Funds 76

Combining Balance Sheet 81 Combining Statement of Revenues, Expenditures, and Changes

Schedules of Revenues, Expenditures, and Changes in Fund Balances in Fund Balances 87

Budget and Actual. 93 Gas Tax Special Revenue Fund 94 Transportation Art 8 Special Revenue Fund 95 CDBG Special Revenue Fund 96 Library Assistance Special Revenue Fund 97 Bus Shelter Special Revenue Fund 98 Transportation Art 3 Special Revenue Fund 99 Home Program Special Revenue Fund 100 Rental Rehab-HUD Special Revenue Fund 101 Traffic Safety Special Revenue Fund 102 Wake Ave Extension Special Revenue Fund 103 Traffic Congestion Relief Special Revenue Fund 104 Recreation Projects Special Revenue Fund 105 Asset Forfeiture Special Revenue Fund 106 Local Transportation Authority Special Revenue Fund 107 Home Grants Special Revenue Fund 108 OTS Grant Special Revenue Fund 109 State COPS SLESF Special Revenue Fund 110 Annexation Fees Special Revenue Fund 111 HUD Entitlement Special Revenue Fund 112 CDBG Program Income Special Revenue Fund 113 Housing Enabled Special Revenue Fund 114 CALHOME Program Special Revenue Fund 115 Development Impact Fee Special Revenue Fund 116 Simplot Special Revenue Fund 117 FHWA Grants Special Revenue Fund 118 Soft Drink Franchise Special Revenue Fund 119

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TABLE OF CONTENTS

lI. FINANCIAL SECTION (Continued)

E. Other Supplemental Information (Continued)

Nonmajor Governmental Funds (Continued)

Schedules of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual:

Integrated Waste Management Special Revenue Fund 120 Used Oil Grant Special Revenue Fund 121 Per Capita Parks Grant Special Revenue Fund 122 Department of Conservation Special Revenue Fund 123 Tire Clean-Up Grant Special Revenue Fund 124 Household Hazardous Waste Special Revenue Fund 125 I-8 Imperial Ave Overpass Special Revenue Fund ; 126 Public Education and Amnesty Grant Special Revenue Fund 127 Used Oil Opportunity Grant 7 Special Revenue Fund 128 EDA Revolving Fund Special Revenue Fund 129 Police & Fire Operational Fund Special Revenue Fund 130 Rural Business Enterprise Grant Special Revenue Fund 131 Legacy Ranch CFD Special Revenue Fund 132 Legacy Ranch Lighting and Landscaping District Special Revenue Fund 133 IV Commons Special Revenue Fund 134 Fire Mitigation Special Revenue Fund 135 2002 Resource Bond Act Special Revenue Fund 136 RDA Housing Special Revenue Fund 137 Orange Ave Regional Lift Capital Projects Fund 138 Park Development Capital Projects Fund 139 Drainage Facility Capital Projects Fund 140 Post Office Grant Capital Projects Fund 141 Lotus Parallel Capital Projects Fund 142 lID Facility Crossing Capital Projects Fund 143 81h Street Overpass Bridge Capital Projects Fund 144 Bridge/Road Improvement Capital Projects Fund 145 Federal Highway Administration Capital Projects Fund 146 Proposition IB Capital Projects Fund 147 La Brucherie Green Belt Capital Projects Fund 148 Colonia - El Dorado Street Capital Projects Fund 149 Buena Vista Landscaping and Lighting District Capital Projects Fund 150 Redevelopment Agency Debt Service Fund 151 Lease Purchase Debt Service Fund 152

III



TABLE OF CONTENTS

II. FINANCIAL SECTION (Continued)

E. Other Supplemental Information (Continued)

Nonmajor Governmental Funds (Continued)

Nonmajor Proprietary Funds 153

Combining Statement of Net Assets 154 Combining Statement of Revenues, Expenses, and Changes in Net Assets 155 Combining Statement of Cash Flows 156

Internal Service Funds 157

Combining Statement of Net Assets 158 Combining Statement of Revenues, Expenses, and Changes in Net Assets 159 Combining Statement of Cash Flows 160

F. Additional Reports

Independent Auditor's 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 161

Report on Compliance With Article XmB -Appropriations Limit.. 163

III. STATISTICAL SECTION

Financial Trends Information Net Assets by Component - 6 Years 165 Changes in Net Assets - 6 Years 166 Fund Balances of Governmental Funds - 10 years 168 Changes in Fund Balances ofGovernmental Funds - 10 years 169

Revenue Capacity Information Property Ad Valorem Tax Assessed Values - I0 years 170

Debt Capacity Information Direct and Overlapping Property Tax Rates - lOYears 171 Principal Property Taxpayers 172

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CITY OF EL CENTRO COMPREHENSNE ANNUAL FINANCIAL REPORT


TABLE OF CONTENTS

III. STATISTICAL SECTION (Continued)

Debt Capacity Infonnation (Continued)

Property Tax Levies and Collections - 10 Years 173 Ratios of Outstanding Debt by Type - 10 Years 174 Ratios ofGeneraI Bonded Debt Outstanding- 10 Years 175 Statement of Direct and Overlapping Debt - Current year 176 Computation of Legal Debt Margin - 10 Years 177 Pledged-Revenue Coverage - 10 years 178

Demographic and Economic Infonnation Population and Unemployment Rate - 10 Years 179 Principal Employers 180

/ Employees by Function (Full Time Equivalents) - 10 years 181( Construction Activity 182

Operating Infonnation Capital Assets Statistics by Function - 10 Years 183 Demands for City Services - 10 Years 184

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INTRODUCTORY SECTION

1 );<: {,! 4- D~cember 0, 2008

To the Honorable Mayor, Members ofthe Governing Council, and Citizens of the City ofEl Centro:

State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with accounting principles generally accepted in the United States of America and audited in accordance with auditing standards generally accepted in the United States of America by licensed certified public accountants. Pursuant to that requirement, we hereby issue the Comprehensive Annual Financial Report of the City ofEl Centro for the fiscal year ended June 30, 2008.

This report consists of management's representations concerning the finances of the City of El Centro. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide reasonable basis for making these representations, management of the City of El Centro has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of El Centro's financial statements in conformity with accounting principles generally accepted in the United States of America. Because the cost of internal controls should not outweigh their benefits, the City of El Centro's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

The City of El Centro's financial statements have been audited by Moss, Levy & Hartzheim, LLP, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of El Centro for the fiscal year ended June 30, 2008, are free of material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City ofEl Centro's financial statements for the fiscal year ended June 30, 2008, are fairly presented in conformity with U.S - GAAP. The independent auditor's report is presented as the first component of the financial section of this report.

Finance Department

1275 Main Street, El Centro, CA 92~43 (760) 337-4573 Fax (760) 337-4564

The independent audit of the financial statements of the City of El Centro was part of a broader, federally mandated "Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government's internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of El Centro's separately issued Single Audit Report.

U.S - GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City of El Centro's MD&A can be found immediately following the report of the independent auditors.

Profile of the Government

The City of El Centro was incorporated under the Laws of the State of California in 1908 and is governed by an elected Five-Member Council. The City is located in the southern part ofthe State, which is considered to be one of the fastest growth areas in the State. The City of El Centro currently occupies a land area of approximately 10 square miles and serves a population of approximately 43,316. The City of El Centro is empowered by the State to extend its corporate limits by annexation, which occurs periodically when deemed appropriate by the governing Council.

The City of El Centro operates under the Council-Manager form of government. Policymaking and legislative authority are vested in a governing council consisting of the Mayor and four Council members.

The Council is responsible, among other things, for passing ordinances, adopting the budget, appointing committees, and hiring the City Manager, City Attorney, and the Secretary to the Council. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. The Council is elected on an at large non-partisan basis. Council members serve four-year staggered terms, with elections held every two years. The Mayor is appointed by the Council to serve a one-year term.

The City of El Centro provides a full range of services, including police and fire protection; the construction and maintenance of streets and other infrastructure; and recreational activities; and water and sewer services. Solid Waste collection and disposal is contracted out. The City of El Centro also is financially accountable for the El Centro Regional Medical Center (Hospital), which is reported within the Proprietary Fund of the City's financial statements. Additional information on the Hospital can be found in Note 1 and other various notes (Note 3, Note 7, Note 8, and Note 12) in the Notes to the Financial Statements.

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The Annual Budget serves as the foundation for the City of EI Centro Financial Planning and Control. Prior to June 30 of each year the City Manager submits to the City Council a proposed operating budget for the Fiscal Year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them. Public hearings are conducted and prior to June 30, the budget is adopted by motion of the City Council. The appropriated budget is prepared by Fund, Function (e.g. Public Safety) and Department (e.g. Police). Department Heads may request transfers of appropriations within their departmental budgets. Transfers of appropriations between departments, however require the authorization of the City Manager. Any revision that increases the total appropriations of any fund must be approved by the City Council. Budget-to-actual comparisons are provided in this report for each individual governmental fund, for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on Page 71 as part of the basic financial statements for the governmental funds.

Factors Affecting Financial Condition

The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of EI Centro operates.

Local Economy

The City of EI Centro, as a whole continued to experience an increase in commercial development however, the growth in residential development was modest. Revenues, for the general fund, exceeded expenditures by $442,722. The increase in revenues produced fund balance at June 30, 2008 in the amount of$12,993,458. This amount represents approximately fifty (50) percent of current year general fund expenditures.

The increase in general fund balance will continue to be used to address the significant issues related to deferred maintenance projects and the need for increased service levels which are being demanded by the City's expanding population.

The following factors contribute to the outlook for long term financial stability: • Both local and regional economic growth continues to exceed the state

average. • The new regional mall and increased commercial development. • The updating of various fees such as the Park and Recreation impact fees and

the creation of special districts.

However, because of the economic downturn being experienced by the state, it is imperative that the City continue its efforts to improve the financial condition.

The County of Imperial consists of seven cities and an unincorporated area with a countywide population of approximately 150,000. The City of EI Centro is the largest City in the County, with a population of approximately 43,316 (per Department of Finance). Among the many attributes that makes Imperial County

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attractive to both commercial and residential development is the abundance of inexpensive water, energy, and land. Additionally, the County serves as the Gateway to the United States for the City of Mexicali, Mexico, the capital of Baja California. Mexicali has a population in excess of 1,000,000 and a significant number of maquiladoras. These factors and others have resulted in a discernable trend towards significant growth in both residential and commercial growth.

Intermediate Plan

The City's short to intermediate goals, in fiscal year 2008, are to continue to provide the infrastructure needed to support the commercial growth in and around the regional mall, as well as the various residential projects being purposed.

The City has approved additional revenue sources in the form of Landscape/Lighting Districts, Community Facilities Districts and Service Districts. The City has updated various fees, such as development impact fees, to aid in financing the additional services that the City is required to provide. In order to continue to provide a high level of water and wastewater services to existing residents, businesses, and new residences the City has also reviewed rates and capacity fees. The City obtained necessary debt financing for updating and expanding facilities, delivery and collection systems by issuing 64 million in water and wastewater revenue bonds.

Cash Management Policies and Practices

The Council recognizes that the City's invested assets are essential to the City's financial strength, and its ability to pay claims; therefore, the City adopted a fiscally responsible investment policy, which promotes the wise investment of City funds. The primary investment needs of the City are the preservation of capital, maintaining appropriate levels of liquidity and yield on invested assets. As a matter of policy no more than 65 percent of the City's funds may be invested in securities with maturities longer than two years from the date of purchase. Securities with maturities longer than five years must be U.S. Treasury Notes or Bonds, Federal National Mortgage Association Bonds or Federal Home Loan Bank Bonds. Additionally, the City is a voluntary participant in the Local Agency Investment Fund (LAIF), which is used for short-term investments. LAIF is regulated by California Code Section 16430 and 16480 under the oversight of the Treasurer of the State of California. On an average 10 percent of the City's funds are invested in Corporate Notes, with the remaining 90 percent on deposit with LAIF or the Bank used to process the City's daily transactions.

Risk Management

The City is a member of the California Joint Powers Insurance Authority. The Authority is composed of approximately 119 California Public Entities and is organized under a Joint Powers Agreement, pursuant to California Government Code 6500. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverage. Each

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member government has an elected official as its representative on the Board of Directors. The Board operates through a nine member Executive Committee.

A part of the City's Risk Management Program, is employee accident prevention training and return to work program. Additional information on the City of EI Centro's Risk Management activity can be found in note 9 of the notes to the Financial Statements.

Pension and other Post Employment Benefits

The City of EI Centro is a member of the California Public Employees Retirement System (CaIPers). The City offers two defined benefit pension plans, Miscellaneous and Public Safety, which provides retirement and disability benefits and death benefits to plan members and beneficiaries. Active plan members are required to contribute a fixed percentage of their annual covered salary. The City of EI Centro is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPers Board of Administration. The contribution requirements of the plan members are established by State Status and the employer contribution is established and may be amended by CalPers.

The City of EI Centro also provides post retirement health and dental care benefits, as provided for in various collective bargaining agreements for retirees that meet certain criteria. The City finances the plan on a pay-as-you-go basis.

Additional information on the City of EI Centro pension arrangements and post employment benefits can be found in notes 14 to 15 in the notes to the financial statements.

Acknowledgements

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance and Administration Department. Credit also must be given to the Mayor and the City Council for their support and direction in maintaining the highest standards of professionalism in the management of the City ofEI Centro Finances.

Respectfully submitted,

(JljJ~ Ruben Duran Leticia Salcido City Manager Director of Finance

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Certificate of Achievement for Excellence

in Financial Reporting

Presented to

City of El Centro

California For its Comprehensive Annual

Financial Report

for the Fiscal Year Ended

June 30, 2007

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 tmancial reporting.

President

Executive Director

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City of El CentroOrganizational Chart

CITY TREASURER

BOARDS &COMMISSIONS

MARCELA PIEDRA

ECONOMICDEVELOPMENT

DIRECTOR

TERRY HAGEN

PUBLIC WORKS/CITY

ENGINEER

KRISTIE RIESTER

PARKS &RECREATION

HAROLD CARTER

INTERIM POLICECHIEF

CHRIS PETREE

FIRECHIEF

LETICIA SALCIDO

FINANCEDIRECTOR

ROLAND BANKS

LIBRARYDIRECTOR

NORMA VILLICANA

PLANNINGDIRECTOR

MARTIN PINON

H.R.DIRECTOR

CITY MANAGER CITY ATTORNEY

CITY COUNCIL CITY CLERK

CITIZENSOF

EL CENTRO

Cheryl V. Walker Council Member

Sedalia Sanders Council Member

Diane Caldwell City Clerk

Roland Banks Terry Hagen Harold Carter Chris Petree Marcela Piedra Martin Pinon Norma Villacana

Richard Romero Finance Manager

CITY OF EL CENTRO

Jon Edney Mayor

Ben Solomon Council Member

Efrain Silva Council Member

Albert Terrazas City Treasurer

Ruben A. Duran City Manager

Luis Hernandez City Attorney

Library Director Director of Public Works/City Engineer

Interim Police Chief Fire Chief

Redevelopment Manager Director of Human resources

Director of Planning

Prepared By: Leticia Salcido - Director of Finance

Yvonne Obeso Financial Specialist

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FINANCIAL SECTION

MOSS, LEVY & HARTZHEIM LLP CERTIFIED PUBLIC ACCOUNTANTS

PARTNERS: 9107 WILSHIRE BLVD. STE 400 RONALD A.LEVY. C.P.A. SEVERLYHIllS. CA 90210 CRAIG A. HARTlHBM. C.P.A. PHONE: (3101 273-27-45 HADLEY Y. HUI. C.P.A. FAX: (310) 273-1689

EMAIL: [email protected]

Independent Auditor's Report

The Members of the City Council of the City of EI Centro

EI Centro, California

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of EI Centro, California (City) as of and for the fiscal year ended June 30, 2008, 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's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the hospital fund. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the hospital fund, is based on the report of the other auditors.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 the 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, based on our audit and the report of other auditors, the financial statements referred to above present. fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of EI Centro, California, as of June 30, 2008, and the respective changes in financial position and cash flows, where applicable thereof, for the fiscal year then ended in conformity with accounting principles generally accepted in the United States of America.

As discussed in note 1 of the notes to the basic financial statements, effective July 1, 2007, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 48, Sales and Pledges of Receivables and Future Revenues and Intra-Entity Transfer of Assets and Future Revenues and Governmental Accounting Standards Board Statement No. 50, Pension Disclosures - an Amemdment ofGASB Statement No. 25 and No. 27.

9 OFFICES; BEVERLV HILLS· SANTA MARIA

MEMBO AMfnlCAN INSTmlfE or C.P.A:, • CAUfORl'&A SOC-Ifl\' ($ CPA's' CAl..JfORNIA SOCIETY OF MJNOAAl FINANCE OFRCERS .. CAl.FORr-4lA ASSOCIATION OF SCH(X')l aLJSINESS o,.'T1C!k,S

In accordance with Government Auditing Standards, we have also issued a report dated December 15, 2008, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contacts, 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 ofour audit.

The Management's Discussion and Analysis on pages 11 through 22 and the Schedule of Revenues Expenditures, and Changes in Fund Balance - Budget to Actual- General Fund are not required parts of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it.

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining nonmajor fund financial statements, major capital projec.ts budgetary comparison schedules, nonmajor funds budgetary comparison schedules, combining nonmajor proprietary fund financial statements, combining internal servic.e fund financial statements, and the statistic.al section are presented for purposes of additional analysis and are not required parts of the basic financial statements. The combining nonmajor fund financial statements, major capital projects budgetary comparison schedules, nonmajor funds budgetary comparison schedules, combining nonmajor proprietary fund financial statements, and combining internal service fund financial statements have 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.

Moss, Levy & Hartzheim, LLP Beverly Hills, California December 15, 2008

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Management's Discussion and Analysis

As management of the City of El Centro, we offer readers of the City of El Centro's financial statements this narrative overview and analysis of the financial activities of the City of El Centro for the fiscal year ended June 30, 2008. 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 on pages 1-6 of this report. All amounts, unless otherwise indicated, are expressed in thousands of dollars.

Financial Highlights

I. Statement of Net Assets and Statement of Activities • The assets of the City of El Centro exceeded its liabilities at the close of the most

recent fiscal year by $203,489. Of this amount, $34,968 may be used to meet the government's ongoing obligations to citizens and creditors.

• The government's total net assets increased by $28,871. Governmental activities increased the City's net assets by $17,266. Business-type activities net asset increased by $11,605.

II. Balance Sheet-Governmental Funds • As of the close of the current fiscal year, the City of El Centro's governmental funds

reported combined ending fund balances of $72,530. Approximately 28% or $20,543 is available for spending (Unreserved Fund Balance). See additional discussion in Financial Analysis of the City's Funds on Pages 23 to 33.

• At the end of the current fiscal year, unreserved fund balance for the general fund was $11,688, or approximately 45 percent oftotal general fund expenditures.

Overview of the Financial Statements

This discussion and analysis is intended to serve as an introduction to the City of El Centro's basic financial statements. The City of El Centro's basic financial statements comprise three components: 1) government-wide financial statement, 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.

Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of El Centro's finances, in a manner similar to a private-sector business.

The statement ofnet assets presents information on all of the City ofEl Centro'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 financial position of the City ofEl Centro is improving or deteriorating.

The statement ofactivities presents infonnation 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 event giving rise to the change occurs, regardless ofthe timing ofrelated cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).

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Both the government-wide financial statements distinguish functions of the City of El Centro that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities of the City of El Centro include general government, public safety, community development, public works, and parks and recreation. The businesstype activities of the City of El Centro include water, sewer (wastewater), solid waste, transit and a community hospital.

The government-wide financial statements, not only include the City of El Centro itself (known as the primary government), but also a legally separate redevelopment agency for which the City ofEl Centro is financially accountable.

The government-wide financial statements can be found on pages 23-24 ofthis 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 El Centro, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All ofthe funds of the City ofEl Centro 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 ofspendable resources, as well as on balances of spendable resources that are 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 funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the governmentwide financial statements. By doing so, readers may better understand the long-term impact of the government's near term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmentalfunds and governmental activities.

The City of El Centro maintains 61 individual governmental 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 and the redevelopment agency capital projects fund, both of which are considered to be major funds. Data from the other 59 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report.

The City of El Centro adopts an annual appropriated budget for its general fund. A budgetary comparison statement had been provided for the general fund to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 25-28 of this report.

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Proprietary Funds. The City of El Centro maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City of El Centro uses enterprise funds to account for its water, wastewater, solid waste, and transit operations as well as the community hospital, El Centro Regional Medical Center. Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City of El Centro on a cost reimbursement basis. The City of El Centro uses internal service funds to account for its fleet of vehicles, workers compensation program, group health insurance, and post employment benefits. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities, in the government-wide financial statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the water, wastewater, and hospital operations, all of which are considered to be Major Funds of the City of El Centro. Conversely, Internal service funds are combined into a single aggregated presentation, in 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 29-31 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 El Centro's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds.

The basic fiduciary fund financial statements can be found on pages 32-33 of this report.

Notes to the Financial Statements. The notes provide additional information that is essential to the 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 34-69 of this report.

Other Information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of El Centro's Schedule of Revenues, Expenditures, and Changes in Fund Balance (Final Budget, Original Budget, and Actual Amount) for the General Fund. Required supplementary information can be found on pages 70-71 of this report.

The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 73-160 ofthis report.

Government-wide Financial Analysis

As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of El Centro, assets exceeded liabilities by $203,489 (see table 1, page 15) at the close ofthe most recent fiscal year.

13

The City of EI Centro's net assets in the amount of $102,686 (approximately 50 percent) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City of EI Centro uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of EI Centro's investment in its capital assets is reported net of related debt, it should be noted that the resources to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.

An additional portion of the City of EI Centro's net assets in the amount of $65,835 (approximately 32 percent) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets, $34,968, 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 EI Centro is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities.

Table 1 - City ofEl Centro Net Assets June 30, 2008 (Thousands)

Governmental

Activities

2008 2007

Business-type

Activities

2008 2007

Total

2008

Current Assets and Other Assets

Capital Assets

Total Assets

103,557

66,500

170,057

91.361

55,528

146,889

133,548

81,925

215,473

126,026

72,094

198,120

237,105

148,425

385,530

217,387

127,622

345,009

Current and Other Liabilities 12,171 6,463 20,543 13,938 32,714 20,401

Long-term Liabilities 33,813 33,749 115,514 116,957 149,327 150,706

Total Liabilities 45,984 40,212 136,057 130,895 182,041 171,107

Net Assets:

Invested in Capital Assets,

Net of related debt 57,567 45,474 45,119 20,472 102,686 65,946

Restricted 58,138 52,414 7,697 7,716 65,835 60,130

Unrestricted 8,368 8,789 26,600 39,037 34,968 47,826

Total Net Assets 124,073 106,677 79,416 67,225 203,489 173,902

14

2007

As shown in Table 2 (below), the City of EI Centro's Net Assets increased by $28,871. Governmental Activities Net Assets increased by $17,266, thereby accounting for 60 percent of the total increase in Net Assets.

Table 2 - City ofEI Centro's Changes in Net Assets For the Year Ended June 30, 2008(Thollsands)

Governmental Business-type

Activities Activities Total

2008 2007 2008 2007 2008 2007

Revenues:

Program Revenues:

Charges for Service 3,284 5,290 102,157 92,388 105,441 97,628

Operating Grants & Contributions 7,615 4,936 624 415 8,239 5,351

Capital Grants & Contributions 9,952 3,111 1,882 2,891 11,834 6,002

General Revenues:

Property Tax 9,220 8,632 9,220 8,632

Sales Tax 10,200 7,508 10,200 7,508

Motor Vehicle in Lieu of Taxes 3,833 3,392 3,833 3,392

Investment Earnings 3,575 2,688 7,128 1,742 10,703 4,430

Investments in Joint Venture

Other 3,547 14,433 24 3,571 14,433

Total Revenue 51,226 49,990 111,815 97,348 163,041 147,376

Expenses:

Government Activities 3,106 2,976 3,106 2,976

Public Protection 15,709 13,951 15,709 13,951

Community Development 3,745 5,703 3,745 5,703

Public Works 6,402 5,318 6,402 5,318

Parks and Recreation 3,028 2,628 3,028 2,628

Interest on Long-Term Liabilities 1,970 1,454 1,970 1,454

Water 7,123 7,186 7,123 7,186

Wastewater 7,221 7,099 7,221 7,099

Hospital 81,948 75,338 81,948 75,338

Other 3,918 3,868 3,918 3,868

Total Expenses 33,960 32,030 100,210 93,491 134,170 125,521

Increase (Decrease) in Net Assets 17,266 17,960 11,605 3,895 28,871 21,855

15

Governmental Activities The change in Net Assets for Governmental Activities increased by $17,266 for the year ended June 30, 2008. The following were the key elements in the change in net assets:

• Total revenues were $51,226 and expenditures totaled $33,960. This was an increase of2.41 percent and 5.68 respectively.

• The increase in revenues from the previous year was primarily due to the following reasons: 1.Creation of two new funds: Fire Mitigation Fund was created for collection of

fees for a commercial project-$546; Proposition 1B Fund was created for money received from the State of California for a major street renovation project -$678

2.Increases in the following funds: RDA Housing Fund increased by $442 due to additional monies received for low income housing; RDA Capital Projects Fund increased by $1,105 due to an increase in interest income generated by cash with fiscal agent and an increase in loan payments by $927 and $178 respectively.

3.Capital contributions by developers in the amount of$7,290 4.Decreases in the following funds: Colonia El Dorado Street Fund and Federal

Highway Administration Fund decreased by ($2,319) and ($1,121), respectively, because a major portion of a street improvement project was completed in the 06/07 fiscal year; Police and Fire Operational Fund decreased by ($664) because there were a one time fee paid by a developer in the 06/07 fiscal year; CalHome Program Fund decreased by ($388) because a grant was completed in the 06/07 fiscal year; HUD Entitlement Program Fund decreased by ($361) because matching funds were reduced in the 07/08 fiscal year; CDBG Fund decreased by ($329) because program loan payoffs were reduced in the 07/08 fiscal year; Traffic Congestion Relief Fund decreased by ($307) because the State eliminated certain funding for the 07/08 fiscal year; Transportation Article 8 Fund decreased by ($285) because funding from the County was reduced in the 07/08 fiscal year; Used Oil Grant Fund decreased by ($257) because the related grants were completed in the 06/07 fiscal year; and the General Fund decreased by ($983) because the Triple Flop payment decreased and the plan check fees decreased in the 07/08 fiscal year.

5.The Statement of Activities consolidated the net income of the internal service fund back to the respective functions in the 07/08 fiscal year, but the net income of the internal service fund was consolidated as charges for services in the 06/07 fiscal year ($1,973)

• The increase in expenditures from the previous year was primarily due to the following reasons: 1.Increases in the following funds: General Fund increased by $2,588 because there

was an increase in public safety personnel and the purchase of public safety equipment; RDA Capital Projects Fund increased by $742 because capital outlay (for the addition of capital assets) increased by $350 and there was an increase in business loans and contributions in the amount of $392; Asset Forfeiture Fund increased by $786 because of the purchase of police vehicles and other safety equipment; Home Grants Fund increased by $352 because unused matching funds were returned; Housing Enabled by Local Partnership Fund increased by $442 because payments were made to the State for loans collected; RDA Housing Fund increased by $2,010 because there was land acquisition for a low income housing project.

16

17

• Total revenues were $51,226 and expenditures totaled $33,960. This was an increase of 2.41 percent and 5.68 respectively.

• The increase in revenues from the previous year was primarily due to the following increases: Property taxes increased due to increase in commercial and residential growth. Investment earning increased due to bond proceeds await expenditure for their intended purpose and better performance than expected. Fire Mitigation ($546) due to fees collected for a commercial project, Proposition 1B ($676) received from the State of California for one major street renovation project, Bridge/Road Improvements ($173) due to fees collected from developers for bridge and road improvements and RDA Housing ($442) due to additional monies received for low income housing.

• The increase in expenditures was in the following funds (amounts): General Fund ($2,500) due to increased public safety personnel and purchase of public safety equipment, Asset Forfeiture ($786) due to purchase of police vehicles and other safety equipment, LTA ($222) due to increase in street projects, HUD Entitlement ($155) due to sidewalk improvement project and RDA ($2.0 mil) for land acquisition for low income housing project.

Expenses and Programs Revenues-Governmental Activities (Amounts expressed in

Thousands)

$-$5

$10$15$20$25$30$35$40

GeneralGovernment

Public Safety Public Works Park &Recreation

CommunityDevelopment

Thou

sand

s

RevenueExpenses

Revenues by Source – Governmental Activities

Revenues by Source-Governmental Activities

6%

15%

19%

18%

21%

14%

7%

Charges for ServicesOperating Grants and ContributionsCapital Grants and ContributionsProperty TaxesSales TaxesRevenue from other AgenciesOther

18

Business-type activities Business-type activities net assets increased by $11,522. In fiscal year 2008 revenues increased by 15 percent and expenditures increased by 7%. ________________________________________________________________________

Expenses and Program Revenues - Business-type Activities (Amounts expressed in Thousands)

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Water Wastewater Hospital Other

RevenuesExpenses

_______________________________________________________________________ _______________________________________________________________________

Revenues by Sources - Business-type Activities

1% Operating Grants and

Contributions6% Unrestricted Investment Earnings

91% Charges for Service

2% Capital Grants & Contributions

Financial Analysis of the Government's Funds

As noted earlier, the City of EI Centro uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds. The focus of the City of EI Centro'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 EI Centro's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City of EI Centro's governmental funds reported combined ending fund balances of $72,530, an increase of $4,122 in comparison with the prior year. Approximately 28% of this total amount or $20,543 constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of the fund balance is restricted and not available for a variety of restricted purposes.

The general fund is the chief operating fund of the City of EI Centro. At the end of the current fiscal year, unreserved fund balance of the general fund was $11,688, while total fund balance totaled $12,993. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 45 percent of total general fund expenditures, while total fund balance represents 50 percent of the total general fund expenditures.

The fund balance, for the General Fund, increased by $443 during the current fiscal year. Significant factors related to the revenue and expenditures of the general fund for the current fiscal year are as follows:

• Revenues for the general fund totaled $24,503, which was a decrease of $983 or approximately 4 percent over the prior fiscal year. Licenses and Permits increased by 26 percent, Taxes increased by 1%, and Fines and Forfeitures decreased by 11%. Revenue from Other Agencies (Intergovernmental) decreased by 6 percent due to decrease in sales tax triple flip payment. Charges for services decreased by 18% due to a decrease in plan check fees.

• Expenditures for the general fund totaled $25,779. This is an increase of $2,588 or approximately 10 percent over the prior fiscal year. Public Safety increased by 10% due to an increase in personnel hired and the purchase of public safety equipment; Parks and Recreation increased by 11 % due to additional programs offered.

The Redevelopment Agency Capital Projects Fund ended the current fiscal year with reserved fund balance in the amount of $20,695, with the fund balance increasing by $435. Significant factors related to the revenues and expenditures of the RDA Capital Projects Fund for the current fiscal year are as follows:

• Revenues totaled $1,314 which was an increase of $1,105 or approximately 526 percent over the prior fiscal year. Interest revenues increased by $928

19

generated by interest earnings with fiscal agent. Other revenues increased by $177 or approximately 157 percent generated by loan payments.

• Expenditures totaled $1,829. This was an increase of $742 or approximately 68 percent, with Capital Outlay increasing by 351 due to remodeling work on a project and Community Development expenses increasing by $392 for business loans and other contributions.

Proprietary Funds

The City of El Centro's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail.

Net assets of the proprietary (enterprise) funds at the end of the year amounted to $79,416. The total growth in net assets for all enterprise funds was $11 ,605. Other factors concerning the finances of these funds have already been addressed in the discussion of the City ofEI Centro's business-type activities.

General Fund, Redevelopment Capital Projects Fund, and Special Revenue Funds Budgetary Highlights

The City made revisions to the original appropriations approved by the City Council. General Fund increased by $115 or approximate1y.43 percent with increases in parks and recreation and consultant fees. There was no change in the original appropriations approved by the City Council for the Redevelopment Agency Capital Projects Fund. The Special Revenue Funds increased by $592 or approximately 4.2 percent due to new state grants.

Capital Asset and Debt Administration

As of June 30, 2008 the City's investment in capital assets for its governmental and business-type activities amounted to $148,425 (net of accumulated depreciation). The investments in capital assets are comprised of land, building and improvements, infrastructure, vehicles, furniture and equipment, and construction in progress. The City, according to GASB 34 guidelines has elected retroactively to include all infrastructure assets dating back to 1980.

Major capital assets changes during the current fiscal year included the following: • Land acquisition for low income housing of$1,560 • Vehicle acquisition of $1 ,559 with 88 percent for public safety • Street improvements of$6,513, including $3,329 in developer contributions • Water and Wastewater system infrastructure improvements totaling $10,198

20

Table 3 - City ofEl Centro's Capital Assets (Net ofAccumulated Depreciation)

June 30, 2008 (Thousands)

Governmental Activities

Business-Type Activities Total

Land Building and Improvements Infrastructure Vehicles Furniture and Equipment Construction in Progress Other

6,148

20,777 23,226 2,404

2,344

11,601

1,444

68,755

211

8,510

3,005

7,592

89,532 23,226 2,615

10,854

14,606

Total 66,500 81,925 148,425

Additional information on the City of El Centro's capital assets can be found in Note 6 on pages 53-54 of this report.

Long-Term Debt

At the end of the current fiscal year, the city had total long-term debt outstanding of $149,513. The composition oflong-term debt is outlined in Table-4 below.

Table 4 - The City's Outstanding Debt June 30, 2008 (Thousands)

Governmental Business-Type Activities Activities Totals

Tax Allocation Bonds $ 31,195 $ $ 31,195 Bonds Payable 112,233 112,233 Capital Leases 49 3,074 3,123 Compensated Balances 2,569 393 2,962 Total $ 33.813 $115,700 $ 149.513

21

The majority ofthe long-term debt is comprised as follows: • Tax Allocation Bonds in the amount of $31,195. The Redevelopment

Agency of the City of EI Centro issued $9,240 in tax allocation bonds in 1996 and $31 million in 2007. The proceeds were used to redeem an earlier bond issue, with the balance to finance public improvements as allowed by Redevelopment regulations.

• Insured Hospital Revenue Bonds in the amount of $33,634. EI Centro Regional Medical Center issued $39,300 in Insured Hospital Revenue Bonds in 2001. The proceeds are being used to finance the construction and equipping of the Medical Center's expansion project.

Additional information on the City of EI Centro's long-term debt can be found in note 8, on pages 55 to 62 of this report.

Economic Factors

As noted in the letter of transmittal the City of EI Centro's continued growth in property and sales tax revenue as well as cost control measures have allowed the City's financial position to improve over the past three years.

The regional mall, which was opened in 2005, continues to increase the city's sales tax base and served as a stimulus for compatible commercial growth in and around the mall area. A new commercial development was built across from the mall and one of the stores, "Best Buy", opened during the fiscal year. The following stores will be opening at this development: Ross, Marshalls, Burlington Coat Factory, Staples, and Bed Bath & Beyond.

While the State and the rest of the Country are experiencing an economic slowdown of great magnitude the City has experienced a slowdown only in its commercial and residential development. The majority of the sales tax base for the City is comprised of individuals from out of the country (Mexicali, Mexico) which has allowed The City's sales tax revenue to continue to increase.

The City continues to proactively position itself for the possible challenges that can be associated with an economic slowdown. The City continues to fund reserves, designations and has developed revenue enhancement and cost containment measures.

Requests for Information

This financial report is designed to provide a general overview of the City of EI Centro'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 the Office of the Director of Finance, 1275 Main Street, City ofEI Centro, California, 92243.

22

CITY OF EL CENTRO Statement of Net Assets

June 30, 2008

Governmental Business-Type Activities Activities Total

Assets: Cash and Investments $ 62,308,445 $ 22,612,099 $ 84,920,544 Restricted Assets: Cash and Investments with Fiscal Agent 23,625,393 81,258,127 104,883,520

Receivables (net ofallowances for uncollectables) Accounts 69,433 19,931,585 20,001,018 Taxes 1,237,978 1,237,978 Interest 273,132 67,271 340,403 Grants 2,070,149 2,070,149 Notes 10,354,829 10,354,829 Other 1,688,706 2,206,794 3,895,500

Inventories 1,557,187 1,557,187 Deferred Charges, Net of Accumulated Amortization 1,452,337 1,856,780 3,309,117 Deferred Loss on Refunding 413,351 413,351 Net Pension Obligation - Overfunded 800,400 800,400

Prepaid Items 988,435 988,435

Investment in Joint Venture 2,269,638 2,269,638

Land Held for Resale 63,589 63,589 Capital Assets Not Being Depreciated 17,748,107 4,448,935 22,197,042 Capital Assets, Net of Accumulated Depreciation 48,751,405 77,476,056 126,227,461

Total Assets 170,056,854 215,473,307 385,530,161

Liabilities: Accounts Payable 2,570,561 8,789,194 11,359,755

SalarieslBenefits Payable 1,002,897 4,536,335 5,539,232

Interest Payable 233,890 934,396 1,168,286

Deposits 8,363,535 1,711,768 10,075,303

Due to Third Party Payers 4,570,924 4,570,924

Non-Current Liabilities: Due Within One Year 1,321,670 3,775,435 5,097,105

Due in More Than One Year 32,491,744 111,739,006 144,230,750

Total Liabilities 45,984,297 136,057,058 182,041,355

Net Assets: Invested in Capital Assets, Net of Related Debt 57,566,767 45,118,649 102,685,416

Restricted for: Housing and Economic Development 33,628,691 33,628,691

Public Improvements 9,703,674 9,703,674

Street Improvements 9,791,116 9,791,116

Public Protection 1,830,542 1,830,542

Parks and Recreation 651,783 651,783

Debt Service 2,532,065 7,697,555 10,229,620

Unrestricted 8,367,919 26,600,045 34,967,964 Total Net Assets $ 124,072,557 $ 79,416,249 $ 203,488,806

The notes to the financial statements are an integral part of this statement.

23

CITY OF EL CENTRO Statement of Activities

For the Fiscal Year Ended June 30, 2008

Functions

Primary Government: Governmental Activities:

General Government Public Protection Community Development Public Works Parks and Recreation Interest on Long-Term Liabilities

Total Governmental Activities

Business Activities Water Wastewater Hospital

tv +:- Transit

Solid Waste Total Business Type Activities

Total Primary Government

Expenses Charges for

Services

Program Revenues Operating Grants and

Contributions

Capital Grants and

Contributions

Net (Expenses) Revenues and Changes in Net Assets


BusinessType

Activities Total

$ 3,105,885 15.709,050 3,745,060 6,401,722 3,027,847 1,970,229

33,959,793

$ 323,057 1,337,987 1,432,847

87,305 103,138

3,284,3~

$ 74,331 679;727

1,040,071 5,715,273

105,088

7,614,490

$ -

1,499,773 8,093,193

359,150

9,952,116

$ (2,708,497) (13,691,336)

227,631 7,494,049

(2,460,471) (1,970,229)

(13,108,853)

$ - $ (2,708,497) (13,691,336)

227,631 7,494,049

(2,460,471 ) (1,970,229)

(13, I08,853)

7,123,415 7,220,805

81,947,795 227,407

3,690,879 100,210,30I

$ 134,170,094

7,045,506 7,003,379

84,339,214 31,911

3,737,471 102,157,481

$ 105,441,815

462,189 161,320

623,509 $ 8,237,999

1,076,901 805,203

1,882,104 $ 11,834,220 (13,108,853)

998,992 587,777

2,853,608 (34,176) 46,592

4,452,793 4,452,793

998,992 587,777

2,853,608 (34,176) 46,592

4,452,793 (8,656,060)

General Revenues: Property Tax Sales Tax Other Taxes Revenue from Other Agencies Investment Earnings Miseellaneous Revenue

Total General Revenues

9,220,182 10,199,467 6,100,198

997,746 3,575,397

281,781 30,374,771

7,128,138 23,653

7,151,791

9,220,182 10,199,467 6,100,198

997,746 10,703,535

305,434 37,526,562

Change in Net Assets 17,265,918 11,604,584 28,870,502

Net Assets - Beginning of Fiscal Year 106,677,995 67,224,367 173,902,362

Prior Period Adjustments 128,644 587,298 715,942

Net Assets - Beginning of Fiscal Ycar (restated) 106,806,639 67,811,665 174,618,304

Net Assets- End of Fiscal Year $ 124,072,557 $ 79,416,249 $ 203,488,806


CITY OF EL CENTRO Balance Sheet

Governmental Funds June 30, 2008

Redevelopment Nonmajor Total Agency Governmental Governmental

General Capital Projects Funds Funds Assets:

Cash and Investments $ 11,684,017 $ 1,232,403 $ 42,872,637 $ 55,789,057 Receivables (Net of Allowances for Uncollectibles):

Accounts 50,511 18,922 69,433 Taxes 1,236,417 1,561 1,237,978 Interesl 53,534 2,708 188,980 245,222 Grants 70,528 1,999,621 2,070,149 Notes 137,176 10,217,653 10,354,829 Other 396,364 823,560 1,219,924

Due from Other Funds 1,015,399 1,015,399 Interfund Advances Receivable 1,300,000 1,300,000 Restricted AsselS:

Investments with Fiscal Agent 20,828,984 2,796,409 23,625,393 Other Assets:

Land Held for Resale 63,589 63,589 Total Assets $ 15,806,770 $ 22,220,193 $ 58,964,010 $ 96,990,973

Liabilities and Fund Balances: Liabilities:

Accounts Payable $ 1,096,634 $ 74,884 $ 1,260,791 $ 2,432,309

SalariesIBenefits Payable 965,563 12,967 16,579 995,109

Deferred Revenue 137,176 10,217,653 10,354,829

Deposits 751,115 7,612,420 8,363,535

Due to Olher Funds 1,015,399 1,015,399

Interfund Advances Payable ],300,000 1,300,000

Total Liabilities 2,813,312 1,525,027 20,122,842 24,461,181

Fund Balances: Reserved for:

Petty Cash 5,150 5,150 Housing and Economic Development 20,695,166 2,578,696 23,273,862

Advances 1,300,000 1,300,000

Public Improvements 9,703,674 9,703,674

Street Improvements 9,791,116 9,791,116

Public Protection 1,830,542 1,830,542

Parks and Recreation 651,783 651,783

Debt Service 2,765,955 2,765,955 Low and Moderate Income Housing 2,601,059 2,601,059

Land Held for Resale 63,589 63,589

Unreserved, Reported in: General Fund 11,688,308 11,688,308 Capital projects fund 8,854,754 8,854,754

Total Fund Balances 12,993,458 20,695,166 38,841,168 72,529,792

Total Liabilities and Fund Balances $ 15,806,770 $ 22,220,193 $ 58,964,010 $ 96,990,973


2S

CITY OF EL CENTRO Reconciliation of tbe Governmental Funds Balance Sbeet

to tbe Statement or Net Assets June 30,2008

Total fund balances - governmental funds

In governmental funds, only current assets are reported. In the statement of net assets, all assets are reported, including capital assets and accumulated depreciation.

Capital assets at historical cost: $ 125,951,604 Accumulated depreciation: (59,452,092)

In governmental funds, debl issuance costs and deferred losses on refunding are recognized as expenditures in the period they are incurred. In the government-wide statements, debt issuance eosl~ and deferred losses on refundings arc capitalized and amortized over the life of the debt.

Deferred Charges, net $ 1,452,337 Deferred Loss on Refunding, nel 413,351

In governmental funds, certain notes receivable are not available to pay for current period expenditures and, therefore. are offset by deferred revenue.

In governmental funds. only current liabilities arc reported. In the statement of net assets, all liabilities, including long-term liabilities, are reported. Long-term liabilities relating to governmental activities consist of:

Ta.x allocation bonds payable 31,195.000 Capital leases payable 49,520 Compensated absences payable 2,568.894

Accrued interest payable from the current portion of interest due on long-term debt has not been reported in the governmental funds.

Internal service funds arc used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The assets and liabilities of the internal service fund must be added 10 the statement of nei assets.

Total net assets - governmental activities

$ 72.529,792

66,499,512

1.865,688

10,354,829

(33,813,414)

(233,890)

6,870,040

$ 124,072,557

The notes to the financial stateme~~ are an integral part of this statement.

CITY OF EL CENTRO Statement of Revenues, Expenditures, and Changes in Fund Balance

Governmental Funds For the Fiscal Year Ended June 30, 2008

Redevelopment Nonmajor Total Agency Governmental Governmental

General Capital Projects Funds Funds Revenues

Taxes $ 13,380,580 $ $ 5,634,630 $ 19,015,210 Licenses and Pennits 481,803 481,803 Intergovernmental 7,214,948 7,642,146 14,857,094

Charges for Services 1,700,879 1,377,034 3,077,913 Fines and Forfeitures 219,396 219,396

Interest 480,572 1,025,774 1,839,945 3,346,291

Other 1,024,623 288,678 1,888,769 3,202,070

Total Revenues 24,502,801 1,314,452 18,382,524 44,199,777

Expenditures Current

General Government 2,977,024 2,977,024

Public Safety 14,960,060 528,402 15,488,462

Public Works 1,728,249 2,074,604 3,802,853

Parks and Recreation 2,338,896 571,628 2,910,524

Community Development 2,318,929 1,448,380 1,954,287 5,721,596

Capital Outlay 1,455,658 380,803 5,310,996 7,147,457

Debt Service Principal 152,846 152,846

Interest and fiscal charges 1,876,983 1,876,983

Total Expenditures 25,778,816 1,829,183 12,469,746 40,077,745

Excess (Deficiency) of Revenues over (under) Expenditures (1,276,015) (514,731 ) 5,912,778 4,122,032

Other Financing Sources (Uses): Transfers In 1,856,463 950,000 483,321 3,289,784

Transfers Out (137,726) (3,152,058) (3,289,784)

Total Other Financing Sources (Uses) 1,718,737 950,000 (2,668,737)

Net Change in Fund Balances 442,722 435,269 3,244,041 4,122,032

Fund Balances - July 1,2007 12,550,736 20,259,897 35,597,127 68,407,760

Fund Balances - June 30,2008 $ 12,993,458 $ 20,695,166 $ 38,841,168 $ 72,529,792


27

CITY OF EL CENTRO Reconciliation of the Statement of Revenues, Expenditures, and Changes in

Fund Balances of Governmental Funds to tbe Statement of Activities For the Fiscal Year Ended June 30, 2008

Amounts reported for governmental activities in the statement ofaelivities are different because:

Net change in fund balance-total gDvernmental funds $ 4,122,032

Governmental funds report capital outlays as expenditures. However, in the statement of aetivitic5, the costs oflhose capital assets arc allocated over thcir estimated llseful lives as depreciation expense. This is thc amounl by which capital outlays exceed depreciation in the current period.

Capital outlay Depreciation expense

$ 8,084,238 (4,095,500) 3,988,738

Revenue in the Statement of Activities that do not provide current financial resources are not reported as reveoues in the Governmental Funds.

Capital contributions of developer infrastructure 7,289,529

Certain notes receivable arc reported in the governmental funds as expenditures and then offset by a deferred revenue as they are not available to pay current expcndjture.~.

Likewise when the note is collected it is reflected in revenue. This is the net change between notes receivable collected and issued. (Collected $492,701) (lssued $842,700) 349,999

The issuance orlong-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources of the governmental funds. Issuance of bond principal is an other finuncing source and repayment of bond principal is an expenditure in govemmenlnl funds, bUI the issuilI1ce incren.~es long-tcrm Iiabilities and the repayment rcduces long-term liabilities in the statement of net assets. 152,846

Compensated absence expenditures rcported in the statement of activities do not require the usc of current financial resources and therefore, are not reported as expenditures in a governmental fund. This is the net change in compensated absences for the current period. (217, J47)

Debt issuance costs and deferred losses on refunding are expenditures in the governmental funds, but these costs arc capilnlized on the statement of net assets. This is the amount of amortization in the CUTTent period.

Deferred issuance costs Deferred Joss on refunding

$ (51,259) (21,496) (73,755)

Accrued interest is interest due On long-term debt payable. This is the net change in accrued interest for the current period. (19,491)

Internal service funds are used by management to charge the costs of certain activities, such as self-insurance, to individual funds. The net revenues (expenses) ofthe inlernal service funds is reported with governmenlol activities. 1,673,167

Cbange in Dct assets of governmental activities $ 17,265,918

The notes to the finaneial statements ore an integral part of this slntemenl. 28

CITY OF EL CENTRO Statement of Net Assets

Proprietary Funds June 30, 2008

Governmental Business-type Activities-Enterprise Funds Activities

Nonmajor Internal Water Wastewater Hospital Enterprise Service Fund Fund Fund Funds Total Funds

Assets

Current Assets: Cash and Invesunents $ 7,319,243 $ 7,848,594 $ 7,241,522 $ 202,740 $ 22,612,099 $ 6,519,388 Receivables (Net ofAllowances for Uncollectibles):

Accounts 1,262,438 1,147,904 17,049,464 471,779 19,931,585 Other 43,861 2,162,933 2,206,794 468,782 Interest 31,376 34,319 1,576 67,271 27,910

Inventories 1,557,187 1,557,187 Unamortized Bond Costs 788,903 1,067,877 1,856,780 Net Pension Obligation - overfunded 800,400 800,400 Prepaid Expenses 988,435 988,435 Investment in Joint Venture 2,269,638 2,269,638

Total Current Assets 9,445,821 10,098,694 32,069,579 676,095 52,290,189 7,016,080

Noncurrent Assets: Restricted Assets: Investments with Fiscal Agents 32,861,094 34,605,796 13,791,237 81,258,127

Capital Assets: Land 181,547 78,560 1,183,775 1,443,882

Buildings 920,335 835,015 52,220,043 53,975,393

Improvements other than Buildings 37,830,808 43,644,424 81,475,232

Machinery and Equipment 3,008,433 1,116,117 36,460,436 40,584,986

Furniture and Fixtures 34,477 46,515 80,992

Vehicles 1,058,140 660,477 1,718,617

Construction in Progress 3,005,053 3,005,053

Less: Accumulated Depreciation (28,295,950) (29,066,249) (42,996,965) (100,359,164)

Total Noncurrent Assets 47,598,884 51,920,655 63,663,579 163,183,118

Total Assets 57,044,705 62,019,349 95,733,158 676,095 215,473,307 7,016,080

Liabilities Current Liabilities:

Accounts Payable 2,135,509 346,579 5,901,700 405,406 8,789,194 138,252

Salaries/Benefits Payable 171,943 163,911 4,200,481 4,536,335 7,788

Interest Payable 399,661 534,735 934,396

Customer Deposits 639,768 1,000,000 72,000 1,711,768

Due to Third-Party Payors 4,570,924 4,570,924

Current Portion of Long-terrn Obligations 648,263 840,781 2,286,391 3,775,435

Total Current Liabilities 3,995,144 2,886,006 16,959,496 477,406 24,318,052 146,040

Noncurrent Liabilities: Compensated Absences 105,944 101,890 207,834

Capital Lease Obligation 1,987,344 1,987,344

Long-term Debt 33,873,103 43,236,540 32,434,185 109,543,828

Total Noncurrent Liabilities 33,979,047 43,338,430 34,421,529 111,739,006

Total Liabilities 37,974,191 46,224,436 51,381,025 477,406 136,057,058 146,040

Net Assets Invested in Capital Assets, Net of Related Debt 11,579,072 6,583,918 26,955,659 45,118,649

Restricted For: Debt Service 1,887,688 1,792,558 4,017,309 7,697,555

Unrestricted 5,603,754 7,418,437 13,379,165 198,689 26,600,045 6,870,040 Total Net Assets $ 19,070,514 $ 15,794,913 $ 44,352,133 $ 198,689 $ 79,416,249 $ 6,870,040


29

Operating Revenues: Charges for Services Other Revenues

Total Operating Revenues

Operating Expenses: Personal Services Contractual Services Supplies and Services General and Administrative Depreciation and Amortization

Total Operating Expenses

Operating Income (loss)

Non-operating Revenues (Expenses): Interest Revenue Interest Expense Other Non-Operating Revenue

Total Non-Operating Revenue (Expenses)

Income (Loss) before contributions

Grants and Contributions

Change in Net Assets

Net Assets - Beginning of Fiscal Year

Prior Period Adjustments

Net Assets - Beginning ofthe Fiscal Year, Restated

Net Assets - End ofFiscal Year

CITY OF EL CENTRO Statement of Revenues, Expenses, and Changes in Net Assets

Proprietary Funds For the Fiscal Year Ended June 30, 2008

Business-type Activities - Enterprise funds

Nonmajor Water Fund

Wastewater Fund

Hospital Fund

Enterprise Funds

$ 7,045,466 40

7,045,506

$ 7,003,369 10

7,003,379

$ 83,364,734 974,480

84,339,214

$ 3,769,382

3,769,382

1,749,447

1,946,107 1,077,185

725,614 5,498,353

1,853,320

1,451,638 986,347 851,706

5,143,011

45,435,770

31,085,918

3,488,864 80,010,552

210,723 3,670,725

36,838

3,918,286

1,547,153 1,860,368 4,328,662 (148,904)

3,213,309 (1,625,062)

1,588,247

3,108,062 (2,077,794)

1,030,268

799,956 (1,937,243)

23,653 (1,113,634)

6,811

6,811

3,135,400 2,890,636 3,215,028 (142,093)

1,076,901 805,203 462,189 161,320

4,212,301 3,695,839 3,677,217 19,227

12,450,478 14,636,511 39,957,916 179,462

2,407,735 (2,537,437) 717,000

14,858,213 12,099,074 40,674,916 179,462

$ 19,070,514 $ 15,794,913 $ 44,352,133 $ 198,689


Total

Internal Service Funds

$ 101,182,951 974,530

102,157,481

$ 6,728,876

6,728,876

49,038,537 210,723

38,154,388 2,100,370 5,066,184

94,570,202

194,687

5,090,128

5,284,815

7,587;179 1,444,061

7,128,138 (5,640,099)

23,653 1,511,692

229,106

229,106

9,098,971 1,673,167

2,505,613

11,604,584 1,673,167

67,224,367 5,196,873

587,298

67,811,665 5,196,873

$ 79,416,249 $ 6,870,040


30

CITY OF EL CENTRO STATEMENT OF CASH FLOWS

PROPRIETARY FUNDS For the Fiscal Year Ended June 30, 2008

Water

Business-type Activities - Enterprise Funds Nonmajor Enterprise

Wastewater Hospital Funds Totals


Internal Service Funds

CASH FLOWS FROM OPERATING ACTIVlTIES:

Cash Received from Patients and Third Parties on Behalfof Patients Cash Received from Operations, other than Patient Services Cash Received from Users Cash PaymenlS to Suppliers and Contractors Cash Payments for General and Administrative Expenses Cash Payments for Employees and Benefit Programs Cash Payments for miscellaneous expenses

7,404,300 (161,057)

(1,077,185) (1,722,361)

7,874,185 (1,344,703)

(986,347) (1,789,255)

$ 81,882,944 2,185,432

(30,793,84 \)

(44,896,908) (154,318)

3,974.850 (4,071,793)

(36.838)

81,882,944 2,185,432

19,253,335 (36,371,394)

(2,100,370) (48,408,524)

(154,318)

$

6,714,961 (5,110,093)

(193,088)

Ne' Cash Provided (Used) By Operating Activities 4,443,697 3,753,880 8,223,309 (133,781) 16,287,105 1,411,780

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Grants 640,160 161,320 801,480

NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 640,160 161,320 801,480

CASH FLOWS FROM INVESTING ACTIVITIES Imerest Received Change in Assets limited as to Use

3,241,493 3,150,864 799,956 (1,147,318)

5,667 7,197,980 (1,147,318)

239,835

Nel Cash Provided (Used) in Investing Activities 3,241,493 3,150,864 (347,362) 5.667 6,050,662 239,835

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from Debt BorrOWings Principal Payments on Debt Borrowings Capital Contribution Interest Paid Acquisition of Property, Plant and Equipment

(176,275) 1,076,901

(1,596,646) (6,346,539)

(705,515) 805,203

(2,034,249) (3,365,389)

2,022,323 (2,608,286)

(1,937,243) (5,058,187)

2.022,323 (3,490,076) 1,882,104

(5,568,138) (14,770.115)

Net Cash Provided (Used) In Capital and Related Financing Activities (7,042,559) (5,299,950) (7,581,393) (19,923,902)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 642,631 1,604,794 934,714 33,206 3,215,345 1,651,615

CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 39,537,706 40,849,596 6,306,808 169.534 86,863,644 4,867,773

CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 40,180.337 42,454,390 7,241,522 $ 202,740 $ 90,078,989 6,519,388

Reconciliation to Statement of Net Assets: Cash and Investments Restricted Cash and Investments with Fiscal Agents Less invesunents not meeting definition ofcash equivalents

$ 7,319,243 32,861,094

40,180.337

7,848,594 34,605,7%

$ 42,454,390

7,241,522 13,791,237

(13,791,237) 7,241,522

202,740

$ 202,740

$

S

22,612,099 81,258,127

(13,791,237) 90,078,989

6,519,388

6,519,388

CASH FLOWS FROM OPERATING ACTIVITIES: Operating Income (Loss) $ 1,547,153 $ 1,860,368 4,328,662 (148,904) S 7,587,279 1,444,06\

Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities:

Depreciation and Amortization Changes in Assets and liabiHties: (Increase) Decrease in AccounlS Receivable (Jncrease) Decrease in Other Receivables Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in SaiarylBenefits Payable (Increrase) Decrease in Nel Pension Obligation. Overfunded (Increase) Decrease in Inventories (Increase) Decrease in Prepaid Items (Increase) Decrease Short-Tenn Investments Increase (Deercasc) in Estimated Third Party Payor Settlements Increase (Decrease) in Deposat Payable Increase (Decrease) in Other Payables Increase (Decrease) in Long-Tenn Compensated Absences

725,614

(139,421) (43,861)

1,828,911 25,385

498,215

1,701

851,706

(129,194)

106.935 40,219

1,000,000

23,846

3,488,864

(4,013,498) 957,952

78,314 622,262 (83,400) 160,224 53,539

253,000 2,531,70g

(154,318)

133.468

(190,345)

72,000

5,066,184

(4,148,645) 914,091

1,823,815 687,866 (83,400) 160.224 53,539

253,000 2,531,708 1,570.215 (154,318)

25,547

(13,915) (18,366)

Total Adjusb11ents 2,896,544 1,893,512 3,894,647 15,123 8,699,826 (32,281 )

Net Cash Provided (Used) By Operating Activities 4.443,697 $ 3,753,880 $ 8,223,309 (133,781) 16,287,105 1,411,780

The notes to the fmancial statements are an integral pan ofthis statement.

31

CITY OF EL CENTRO Statement of Fiduciary Net Assets

Fiduciary Funds June 30, 2008

Hospital Employees Pension Trust Fund

Assets: Cash and Investments:

Stocks Mutual Funds Money Market Funds

Contributions Receivable Interest Receivable

Total Assets

$ 12,513,187 14,456,392

1,616,856 245,984

50,708 28,883,127

Liabilities: Pension Obligation Payable

Total Liabilities

Net Assets-Held in Trust for Pension Benefits $ 28,883,127


32

CITY OF EL CENTRO Statement of Changes in Fiduciary Net Assets

Fiduciary Funds For the Fiscal Year Ended June 30,2008

Hospital Employees Pension Trust Fund

Additions: EmployeelEmployer Contributions $ 2,971,185 Fee Reimbursements 115,663 Other 6,258 Interest and Investment Income 692,242

Total Additions 3,785,348

Deductions: Payments to Beneficiaries 1,559,572 Change in Investment Value 2,164,155 Administrative Expenses 148,684

Total Deductions 3,872,411

Change in Net Assets (87,063)

Net Assets - Beginning of Fiscal Year 28,970,190

Net Assets - End of Fiscal Year $ 28,883,127


33

NOTES TO

BASIC FINANCIAL STATEMENTS

34

CITY OF EL CENTRO NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2008

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. Reporting Entity

The City of EI Centro was incorporated under the laws of the State of California in 1908 and is governed by an elected five-member council. As required by accounting principles generally accepted in the United States of America, these financial statements present the City and its component unit, an entity for which the City is considered to be financially accountable. The EI Centro Regional Medical Center (Hospital) is an operating department of the City and is reported within the proprietary fund type.

Blended component units, although legally separate entities are, in substance, part of the City's operations, and so data from these units are combined with data of the City. The City and its component unit have a June 30 year-end.

Blended Component Unit. The Redevelopment Agency ofthe City ofEl Centro (Agency) serves the citizens of the City and is a blended component unit of the City since it is governed by a board comprised ofthe CityCouncil. The Agency is reported in the special revenue, debt service and capital projects funds.

Complete financial statements for each of the individual component units may be obtained at the entity's administrative offices.

City ofEl Centro Redevelopment Agency 1275 Main Street EI Centro, California 92243

B. Basis of Presentation

Government-wide Financial Statements

The statement of net assets and statement of activities display information about the primary government (the City) and its component units. These statements include the financial activities ofthe overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements distinguish between the governmental and business-type activities of the City and between the City and its blended component unit. Governmental activities, which normally are supported by taxes and inter-governmental revenues, are reported separately from business-type activities, which rely, to a significant extent on fees charged to external parties.

The statement ofactivities presents a comparison between direct expenses and program revenues for each segment of the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and; therefore, are clearly identifiable to a particular function. Program revenues include 1) charges paid by the recipients of goods or services offered by the programs and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented instead as general revenues.

35


June 30, 2008

NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

B. Basis of Presentation (Continued)

When both restricted and unrestricted net assets are available, restricted resources are used only after the unrestricted resources are depleted.

Fund Financial Statements

The fund financial statements provide information about the City's funds, including fiduciary funds and blended component units. Separate statements for each fund category-governmental, proprietary andfiduciary - are presented. The emphasis of fund financial statements is on major governmental and enterprise funds; each displayed in a separate column. All remaining governmental and enterprise funds are separately aggregated and reported as nonmajor funds.

Proprietary funds distinguish operating revenues, such as charges for services, and result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Nonoperating revenues, such as subsidies and investment earnings, result from nonexchange transactions or ancillary activities.

The City reports two major governmental funds:

• The General Fund is used to account for all revenues and expenditures necessary to carry out basic governmental activities of the City that are not accounted for through other funds. For the City, the General Fund includes activities as public protection, public works and facilities, parks and recreation, and community development.

• The Redevelopment Agency Capital Projects Fund is used to account for revitalization and redevelopment through the acquisition and development of real property within the Redevelopment Project Area.

The City reports the following major enterprise funds:

• The Hospital Fund accounts for the operations of the EI Centro Regional Medical Center which provides health care services to the community and surrounding area.

• The Water Fund accounts for revenues and expenses associated with the treatment and distribution of potable water.

• The Wastewater Fund accounts for revenues and expenses associated with the collection and treatment of wastewater.

36


June 30, 2008


B. Basis of Presentation (Continued)

The City reports the following additional fund types:

Internal Service Funds account for operations that provide services to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis, such as motor vehicle maintenance, worker's compensation, post employment benefits, and group health insurance.

The Hospital Employees Pension Trust Fund accumulates contributions from the Hospital and its employees. Disbursements are made from the fund for retirement and death benefits (based on a defined benefit fonnula) and administrative expenses.

C. Basis of Accounting and Measurement Focus

The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis ofaccounting. Revenues are recorded when earned and expenses are recorded at the time the I iabi lities are incurred, regard less ofwhen the related cash flows take place. Nonexchange transactions, in which the City gives (or receives) value without directly receiving (or giving) equal value in exchange, include propertyand sales taxes, grants, entitlements and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenues from sales tax are recognized when the underlying transactions take place. Revenues from grants, entitlements, and donations are recognized in the fiscal year in which all eligible requirements have been satisfied.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when susceptible to accrual (i.e., when they are "measurable and available"). "Measurable" means the amount of the transaction can be detennined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. The City considers all revenues available if they are collected within 60 days after fiscal year-end. Expenditures are recorded when the related fund liability is incurred, except for debt service expenditures which are recognized when due, and certain compensated absences and claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. General capital assets acquisitions are reported as expenditures in governmental funds. Proceeds of long-term debt and capital leases are reported as other financing sources.

Property taxes, transient occupancy taxes, and interest are susceptible to accrual. Sales taxes collected and held by the state at fiscal year-end on behalf of the City are also recognized as revenue. Other receipts and taxes become measurable and available when cash is received by the City and are recognized as revenue at that time.

Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other grant requirements have been met.

For its business-type activities and enterprise funds, the City has elected under GASB Statement No. 20, Accounting and Financial Reportingfor Proprietary Funds and Other Governmental Entities That Use Proprietary FundAccounting, to apply all applicable GASB pronouncements as well as any

37


June 30, 2008


C. Basis of Accounting and Measurement Focus (Continued)

applicable pronouncements ofthe Financial Accounting Standards Board, the Accounting Principles Board or any Accounting Research Bulletins issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. The GASB periodically updates its codification ofexisting Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB pronouncements (Statements and Interpretations), constitutes (GAAP) for governments units. The Hospital has elected to apply all FASB Statements and Interpretations, APB Opinions and ARBs issued after November 30, 1989, except for those that conflict with or contradict GASB pronouncements.

D. Assets, Liabilities, and Equity

1. Deposits and Investments

In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City pools the cash ofal I funds, except for monies deposited with fiscal agents in accordance with related bond indentures. The cash and investments balance in each fund represents that fund's equity share of the City's cash and investment pool. As the City places no restrictions on the deposit or withdrawal of a particular fund's equity in the pool, the pool operates like a demand deposit account for the participating funds.

Interest income earned 011 pooled cash and investments is allocated monthly to the various funds based on month-end balances and is adjusted at fiscal year-end. Interest income on restricted cash and investments with fiscal agents is credited directly to the related fund.

In accordance with the State of California Government Code, the City adopts an investment policy annually that, among other things, authorizes types and concentrations of investments and maximum investment terms.

The City's investments are carried at fair value. The fair value of equity and debt securities is determined based on sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ dealers. LAIF determines the fair value ofits portfolio quarterly and reports a factor to the City; the City applies that factor to convert its share ofLAIF from amortized cost to fair value. Changes in fair value are allocated to each participating fund.

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be change and petty cash funds, equity in the City's cash and investment pool, and restricted non-pooled investments with initial maturities of three months or less.

Investments are stated at fair value in accordance with GASB 31, Accounting andFinancial Reporting for Certain Investments andfor External Investment Pools. Short-term investments are reported at cost, which approximates fair value. The fair values are based on quoted market prices, ifavailable, or estimated using quoted market prices for similar securities. Securities traded on national or international exchanges are valued at the last reported sales price at current exchange rates. Interest, dividends, and realized and unrealized gains and losses, based on the specific identification method, are included in interest revenues when earned.

38


June 30, 2008


D. Assets, Liabilities, and Equity (Continued)

2. Receivables and Payables

Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances". Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources.

Trade receivables, including those for the Hospital, are shown net of an allowance for uncollectible accounts.

For each fiscal year beginning July I, taxes are levied on taxable real (secured) and personal (unsecured) property located within the City as ofthe preceding January I. Secured property taxes are payable in two installments on November I, and February 1 of each fiscal year, and become delinquent after December 10 and April 10, respectively. Taxes on unsecured property are payable March 1 and become delinquent the following August 31. A 10 percent penaltyattaches to delinquent taxes, which have been levied on property on the secured roll. Such property may thereafter be redeemed by payment ofthe delinquent taxes and the delinquency penalty, plus a redemption penalty of 1 \12 percent per month to the time of redemption. Iftaxes are unpaid for a period of five years or more, the property is deeded to the State and is subject to sale by the County Tax Collector.

The only concentrated group of credit risks is Hospital receivables from government agencies. Hospital management does not believe that there is a significant credit risk associated with these government agencies. Management continuously monitors and adjusts reserves and allowances associated with these receivables.

3. Inventories and Prepaid Items

Inventories are valued at cost using the first-in/first-out (FIFO) method. The costs of governmental fund-type inventories are recorded as expenditures when consumed rather than when purchased.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items.

4. Restricted Assets

Certain assets of special revenue grant funds are classified as restricted assets because their use is restricted by grant agreements.

Certain resources ofthe Redevelopment Capital Projects Fund are set aside for the capital projects and are classified as restricted assets because their use is restricted by applicable bond covenants.

Certain resources of the Redevelopment Agency Debt Service Fund and the Water and Wastewater funds are set aside for the repayment of bonds and certificates ofparticipation and are classified as restricted assets on the balance sheet/statement ofnet assets because their use is limited by applicable bond covenants.

39


June 30, 2008



4. Restricted Assets (Continued)

Certain resources of the Group Health Insurance internal service fund is classified as restricted because its use is limited by the provisions of plan documents.

Certain resources of the Hospital set aside for the repayment ofbonds are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants.

Certain Hospital assets limited as to use primarily include assets held by trustees under indenture agreements and designated assets set aside by the Hospital Board of Trustees for future capital improvements over which the Board retains control and may, at its discretion, subscquently use for other purposes.

Other restricted resources consist offunds Jimited as to use by donors. Restricted gifts, bequests, and grants are reported as restricted funds until expenditures are made for the donor's intended purpose.

The government-wide statement of net assets reports $65,835,426 of restricted net assets.

5. Capital Assets

Capital assets, including infrastructure, are recorded at historical cost or at estimated historical cost if actual historical cost is not available. Contributed fixed assets are valued at their estimated fair value on the date contributed. Capital assets include public domain (infrastructure) general fixed assets which consist ofcertain improvements including roads, bridges, pavements in progress, and right of way. The City defines capital assets as assets with initial, individual costs of more than $3,000 and an estimated useful life in excess of one year. The Hospital defines capital assets as assets with initial, individual costs ofmore than $500 and an estimated useful life ofat least three years. Capital assets used in operations are depreciated or amortized (assets under capital leases) using the straight-line method over the lesser of the capital lease period or their estimated useful lives in the governmentwide statements and proprietary funds.

Maintenance and repairs are charged to operations when incurred. Betterments and major improvements, which significantly increase values, change capacities, or extend useful lives, are capitalized. Upon sale or retirement offixed assets, the cost and related accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in the results of operations.

Property, plant, and equipment in the proprietary funds of the City and Hospital are recorded at cost. Property, plant, and equipment donated to these proprietary fund type operations are recorded at their estimated fair value at the date ofdonation.

Major outlays for capital assets and improvements are capitalized in proprietary funds as projects are constructed. Net interest cost during construction is capitalized when the effects of capitalization materially impacl lilt: financial statements.

40

CITY OF EL CENTRO NOTES TO BASIC FlNANCIAL STATEMENTS

June 30, 2008



5. Capital Assets (Continued)

Property, plant, and equipment are depreciated using the straight-line method over the following estimated useful lives:

Q!y Hospital Buildings 5-70 5-50 Building Improvements 5-30 5-50 Equipment 3-20 3-20 Office Furniture 5 5 Vehicles 3-15 3-20 Infrastructure 20-50 Not Applicable

6. Compensated Absences

It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Vacation and sick pay is accrued when incurred in proprietary funds and reported as a fund liability. The City accrues for compensated absences in the government-wide and proprietary fund financial statement for which they are liable to make a payment directly.

Depending on their bargaining group agreement, the City's employees are given 15 vacation days and 12 days of sick leave or 22 days of annual leave. Leave is provided to be utilized as sick leave, to attend medical appointments, vacation, etc. Sick leave payoff is avai lable for accumulated sick leave hours over 288 hours.

Compensated absences in governmental activities have been liquidated in the past fiscal year in the general fund, redevelopment agency, and enterprise funds.

7. Long-term Obligations

In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt, and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net ofthe applicable bond discount in the Hospital Fund. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount ofdebt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

41


June 30, 2008



8. Net Assets and Fund Equity

In the Government-wide financial statements and proprietary fund financial statements, net assets are reported in three categories: net assets invested in capital assets, net of related debt; restricted net assets, and unrestricted net assets. Restricted net assets represent net assets restricted by parties outside of the City (such as creditors, grantors, contributors, laws, and regulations of other governments) and include unspent proceeds ofbonds issued to acquire or construct capital assets. The City's other restricted net assets are temporarily restricted (ultimately expendable assets). All other net assets are considered unrestricted.

In the fund financial statements, governmental funds report reservations offund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change.

9. Use of Estimates

The preparation offinancial statements in conformity with accounting principles generally accepted in the United States ofAmerica requires management to make estimates and assumptions that affect the reported amounts ofassets and liabilities and disclosures ofcontingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

10. New Accounting Pronouncements

Governmental Accounting Standards Board Statement No. 48

For the fiscal year ended June 30, 2008, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 48, "Sales and Pledges ofReceivables and Future Revenues and IntraEntity Transfers ofAssets and Future Revenues". The Statement is effective for periods beginning after December 15, 2006. This Statement establishes accounting and financial reporting standards for transactions in which a government receives, or is entitled to, resources in exchange for future cash flows generated by collecting specific receivables or specific future revenues. It also contains provisions that apply to certain situations in which a government does not receive resourres but, nevertheless, pledges or commits future cash flows generated by collecting specific future revenues. In addition, this statement establishes accounting and financial reporting standards that apply to all intra-entity transfers ofassets and future revenues. Implementation ofGASB Statement No. 48 did not have an impact on the City'S basic financial statements for the fiscal year ended June 30, 2008.

Governmental Accounting Standards Board Statement No. 50

For the fiscal year ended June 30, 2008, the City implemented GASB Statement No. SO, "Pension Disclosure - an Amendment ofGASB Statements No. 25 and No. 27". The Statement is effective for periods beginning after June 15, 2007. This Statement establishes and modifies requirements related to fmancial reporting by pension plans and by employers that provide defmed benefit and defined contribution pensions.

42


June 30, 2008



11. Net Patient Service Revenue

Hospital net patient service revenue is reported at estimated net realizable amounts from patients, third-party payors, and others for services rendered, including estimated retroactive adjustments under reimbursement agreements with federal and state government programs and other third-party payors. In some cases, reimbursement is based on fonnulas, which cannot be determined until after cost reports are filed and audited or otherwise settled by the various programs. Estimation differences between final settlements and amounts accrued in previous years are reflected in net patient service revenue.

12. Investment in Joint Venture

The Hospital has a 50 percent interest in Imperial Valley Health Resources Authority (lVHRA) which is accounted for under the equity method.

13. Land held for resale or exchange

Cost ofproject land and improvements held for resale or exchange are recorded in the Redevelopment Agency Special Revenue Fund as inventory at the lower of acquisition cost or net realizable value. The fund balance is reserved in an amount equal to the carrying value of land held for resale or exchange because such assets are not available to finance the Agency's current operations.

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY

A. Budgetary Information

Budgets are adopted on a basis consistent with accounting principles generally accepted in the United States of America for all governmental funds. Budgets are adopted annually and all annual appropriations lapse at the fiscal year end.

The City utilizes the following procedures when establishing the budgetary data reflected in the financial statements:

Prior to June 30 of each fiscal year, the City Manager submits to the City Council a proposed operating budget for the fiscal year commencing the following July 1. The operating budget includes proposed expenditures and the means of financing them.

Public hearings are conducted at City Hall to obtain citizen input. Prior to July I, the budget is adopted by motion of the City Council.

The City Manager is authorized to transfer budgeted amounts between departments within any fund. However, any revision that increases the total appropriations ofany fund must be approved by the City Council. The appropriated budget is prepared by fund, function, and department.

43


June 30, 2008

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (CONTINUED)

A. Budgetary Information (Continued)

Formal budgetary integration is employed as a management control device during the year for all funds.

Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders and contracts) outstanding at fiscal year-end are reported as reservations offund balances and do not constitute expenditures or liabilities because the commitments will be re-appropriated and honored during the subsequent year.

There were no budgets prepared for the CDBG Special Revenue Fund, HOME Grants Special Revenue Fund, Annexation Fees Special Revenue Fund, Housing Enabled by Local Partnership Special Revenue Fund, FHWA Grants Special Revenue Fund, Per Capita Parks Grant Special Revenue Fund, Household Hazardous Waste Special Revenue Fund, Public Education & Amnesty Grant Special Revenue Fund, Used Oil Opportunity Grant 7 Special Revenue Fund, Rural Business Enterprise Grant Special Revenue Fund, Legacy Ranch CFD Special Revenue Fund, Legacy Ranch Lighting & Landscaping District Special Revenue Fund, IV Commons Special Revenue Fund, 2002 Resource Bond Act Special Revenue Bond, lID Facility CrossingCapital Projects Fund, BridgelRoad Improvement Capital Projects Fund, Proposition 1B Capital Projects Fund, and La Brucherie Green Belt Capital Projects Fund.

B. BudgetlGAAP Reconciliation

No funds adopted project-length budgets and, therefore, no schedule reconciling the amounts on the Combined Statement ofRevenues, Expenditures and Changes in Fund Balance-Budget to Actual to the amounts on the Combined Statement ofRevenues, Expenditures and Changes in Fund Balances has been prepared.

44


June 30, 2008

NOTE 2 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY (Continued)

C. Excess of Expenditures over Appropriations

For the fiscal year ended June 30, 2008, expenditures exceeded appropriations in the following funds:

Fund

Nonmajor Funds: CDBG Library Assistance Bus Shelter HOME Program Traffic Safety Recreation Projects Asset Forfeiture HOME Grants Annexation Fees CDBG Program Income Housing Enabled By Local Partnership CalHome Program Development Impact FHWA Grants Soft Drink Franchise Integrated Waste Management Department ofConservation Household Hazardous Waste EDA Revolving Rural Business Enterprise Grant Legacy Ranch CFD Legacy Ranch Lighting and Landscaping District IV Commons 2002 Resource Bond Act Federal Highway Administration Redevelopment Agency

D. Deficit Fund Equity

Final Appropriation Expenditures Excess

$ 20,700

6,640 98,000 46,505 89,300

1,175,407

800 189,100 42,000

2,000

100,000 1,649,666

$ 116,501 26,427 9,250

218,493 69,006

113,979 850,629 351,935

20,030 18,821

442,067 2,629

1,204,977 19,987 1,018

221,881 50,195 3,778

50,516 37,531 24,333

4,118 13,160 19,699

575,151 1,871,039

$ 116,501 5,727 2,610

120,493 22,501 24,679

850,629 351,935

20,030 18,821

442,067 2,629

29,570 19,987

218 32,781

8,195 3,778

48,516 37,531 24,333

4,118 13,160 19,699

475,151 221,373

At June 30, 2008, the following funds had an accumulated deficit:

Amount Post Office Grant $ 63,363 Federal Highway Administration 10,017 Transit 31,054

45


June 30, 2008

NOTE 3 - CASH AND INVESTMENTS

Cash and investments as ofJune 30, 2008 are classified in the accompanying financial statements as follows:

Statement ofnet assets: Cash and investments $ 84,920,544

Restricted cash and investments with fiscal agents 104,883,520 Fiduciary funds:

Cash and investments 28,586,435

Total cash and investments $ 218,390,499

Cash and investments as of June 30,2008 consist of the following:

Cash on hand $ 5,150 Deposits with financial institutions 2,570,701 Investments 215,814,648

Total cash and investments $ 218,390,499

A. 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 ofEI Centro (City) by the California Government Code (or the City's investment policy, where more restrictive). The table also identifies certain provisions ofthe 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 ofdebt proceeds held by bond trustee that are governed by the provisions ofdebt agreements ofthe City rather than the general provisions ofthe California government Code or the City's investment policy.

Maximum Maximum Maximum Percentage Investment

Authorized Investment Type Local Agency Bonds 10 years

Maturity of Portfolio None

in One Issuer None

U.S. Treasury Obligations 10 years None None U.S. Government Agency Issues 10 years None None Bankers Acceptances 180 days 40% None Commercial Paper 270 days 25% None Certificates ofDeposit 5 years 30% None Repurchase Agreements I year None None Medium-Term Notes 5 years 30% None Mutual Funds N/A None None Money Market Mutual Funds N/A None None Time Deposits 5 years None None Local Agency Investment Fund (LAIF) N/A None None

The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

46


June 30, 2008

NOTE 3 - CASH AND INVESTMENTS (Continued)

B. Investments Authorized by Debt Agreements

Investment of debt proceeds held by bond trustees 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 ofPortfolio in One Issuer Local Agency Bonds U.S. Treasury Obligations State Obligations

N/AN/A N/A

None None None

None None None

U.S. Government Agency Issues N1A None None Money Market Mutual Fund N/A None None Bankers Acceptances N/A None None Commercial Paper 270 days None None Certificates ofDeposit N/A None None Repurchase Agreements N/A None None Investment Agreements N/A None None Local Agency Investment Fund (LAIF) N/A None None

The investment policy allows for the above investments which have equal safety and liquidity as all other allowed investments. Maturity depends on the cash needs of the City.

C. Disclosures Relating to Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value ofan investment. Generally, the longer the maturity ofan 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 ofthe 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 ofthe fair values ofthe City's investments (including investments held by bond trustee) and the Pension Fund to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity:

47


June 30, 2008


C. Disclosures Relating to Interest Rate Risk (Continued)

Remaining maturity (in Months) 12 Months 13 to 24 25-60 More Than 60

Investment Type Totals or Less Months Months Months

State Investment Pool (LAIF) $ 41,751,283 $ 41,751,283 $ $ $ Money Market Funds 36,316,854 36,316,854 Federal Agency Securities 2,198,919 1,073,633· 623,721 501,565 Medium Term Notes 5,349,536 4,487,913 602,143 259,480 certificates ofDeposit 2,057,235 2,057,235 Commercial Paper 940,580 940,580 Municipal Bonds 1,395,215 1,095,215 300,000 Repurchase Agreement 2,109,000 2,109,000 Held by Pension Trustee:

Stocks 12,513,187 12,513,187 Mutual Funds 14,456,392 14,456,392 Money Market Funds 1,616,856 1,616,856

Held by Bond Trustees: Money Market Funds 63,500,923 63,500,923 Investment Agreements 31,608,668 19,839,902 11,768,766

$ 215,814,648 $ 201,758,973 $ 1,225,864 $ 761,045 $ 12,068,766

D. Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations

The City has no investments (including investments held by bond trustees) that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above).

E. Disclosures Relating to Credit Risk

Generally, credit risk is the risk that an issuer ofan investment will not fulfill its obligation to the holder ofthe investment. This is measured by the assignment ofa rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code, the City's investment policy, or debt agreements, and the actual rating as of fiscal year end for each investment type.

48


June 30, 2008


E. Disclosures Relating to Credit Risk (Continued)

Rating as of Fiscal Year End Minimum Exempt

Legal From Not Investment Type Amount Rating Disclosure AAA AA A Rated

State Investment Pool $ 41,751,283 N/A $ $ $ $ $ 41,751,283 Money Market Funds 36,316,854 N/A 36,316,854 Federal Agency Securities 2,198,919 N/A 2,198,919 Medium Term Notes 5,349,536 A 1,872,768 2,989,268 487,500 Certificates of Deposit 2,057,235 N/A 2,057,235 Commercial Paper 940,580 N/A 940,580 Municipal Bonds 1,395,215 N/A 1,395,215 Repurchase Agreement 2,109,000 N/A 2,109,000 Held by Pension Trustee: Stocks 12,513,187 N/A 12,513,187 Mutual Funds 14,456,392 NlA 14,456,392 Money Market Funds 1,616,856 N/A 1,616,856 Held by Bond Trustee:

Money Market Funds 63,500,923 Aam 62,464,274 1,036,649 Investment Agreements 31,608,668 AA 3\ ,608,668

Total $ 215,814,648 $ $ 100,980,047 $ 34,518,085 $ 2,989,268 $ 77,327,248

F. Concentration of Credit Risk

The investment policy of the City contains limitations on the amount that can be invested in any one issuer. Investments in anyone issuer(other than U.S. Treasury securities, mutual funds, and ex.ternal investment pools) that represent 5% or more of total City investments are as follows:

Investment Reported Issuer Type Amount

Citigroup Financial Products, Inc. Investment Agreement $ 22,605,640

Investments in anyone issuer that represent 5% or more of total investments (other than U.S. Treasury Securities, Mutual Funds, and extend investment pools) by reporting unit (primary government, governmental activities, business type activities, fiduciary funds, major funds, nonmajor funds in the aggregate, etc.) are as follows:

Cash and investments (including amounts held by bond trustees) reported in the Governmental Activities Statement ofNet Assets holds investment agreements in the amount of$22,605,640 from Citigroup Financial Products, Inc.

The Redevelopment Agency Capital Projects Fund (Major Fund) holds investments (including amounts held by bond trustees) in the amount of $19,839,902, which is an investment agreement from Citigroup Financial Products, Inc.

49


June 30, 2008


G. Custodial Credit Risk

Custodial credit risk for deposits is the risk that, in the event ofthe failure ofa 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 government unit). The fair value of the pledged securities in the collateral pool must equal at least 110% ofthe 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.

As of June 30, 2008, $2,442,555 of the City's deposits with financial institutions in excess of federal depository insurance limits was held in collateralized accounts. As ofJune 30, 2008, City investments in the following investment types were held by the same broker-dealer (counterparty) that was used by the City to buy the securities:

Reported Investment Type Amount

Medium Term Notes $ 5,349,536 Federal agency securities 1,029,548 Money market funds 63,500,923 Investment Agreements 31,608,668

H. Investment in State Investment Pool

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight ofthe Treasurer ofthe State ofCalifomia. 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 ofthat portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.

50

CITY OF EL CENTRO NOTES TO BASIC FlNANCIAL STATEMENTS

June 30, 2008

NOTE 4 - RECEIVABLES

A. Receivables

Accounts, taxes, interest, grants, and other receivable balances of the General, Special Revenue, Capital Projects, Debt Service, Proprietary, and Fiduciary Funds are stated net of allowances for uncollectible accounts. The following is a schedule ofreceivables applicable to each individual fund at June 30, 2008:

Receivable Allowance Net Governmental Activities

Accounts Taxes Interest Grants Others

$ 69,433 1,237,978

273,132 2,070,149 1,688,706

$ $ 69,433 1,237,978

273,132 2,070,149 1,688,706

$ 5,339,398 $ $ 5,339,398

Business-type Activities-Accounts Interest Others

$ 84,787,081 67,271

2,206,794

$ 64,855,496 $ 19,931,585 67,271

2,206,794

$ 87,061,146 $ 64,855,496 $ 22,205,650

Fiduciary Funds Accounts Interest

$ 245,984 50,708

$ 245,984 50,708

$ 296,692 $ $ 296,692

B. Notes Receivable

The City administers a residential rehabilitation program, a commercial micro-enterprise program, and a First Time Home Buyer Program. A committee approves the loans, and the funds are disbursed to the contractor awarded the bid upon review of the building inspector, the administrating City, the homeowner and the City. The programs are designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the City's terms. The balance of the loans receivable arising from these programs was $10,354,829.

51


June 30, 2008

NOTE 5 - INTERFUND TRANSACTIONS

A. Interfund Receivables and Payables

During the course of nonnal operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other funds." The following presents a summary of current interfund balances at June 30,2008.

Receivable Fund Ml!iorFund:

General

Totals

Amount

$ 1,015,399

$ 1,015,399

Payable Fund Nonrnajor Funds:

Gas Tax Used Oil Grant Tire Clean-Up Grant

2002 Resource Bond Act Post Office Grant Federal Highway Administration Colonia-EI Dorado Street

Amount

$ 110,361 19,678

166,808

19,699 63,363

619,938 15,552

Totals $ 1,015,]99

B. Long-term Interfund Advances

At June 30,2008, the funds below have made/received advances that were not expected to be repaid within one year.

Receivable Fund Amount Pa}3ble Fund Amount Major Fund: Ml!iorFund:

General $ 1,300,000 Redevelopment Agency Capital Projects $ 1,300,000

C. Transfers between Funds

Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations, re-allocations ofspecial revenues, and debt service transfers to pay principal and interest payments on pension obligation bonds. All inter-fund transfers between individual government funds have been eliminated on the government-wide statements.

The following schedule briefly summarizes the City's transfer activity for the fiscal year ended June 30,2008:

Fund Transfers-in Transfers-out Major Funds:

General $ 1,856,463 $ 137,726 Redevelopment Agency Capital Projects 950,000

Nonmajor Funds: Gas Tax 760,000 Transportation Article 8 750,000 Traffic Congestion Relief 163,837 Recreation Projects 30,792 Development Impact Fee 51,857 Police and Fire Operational 293,739 Fire Mitigation 293,739 182,625 Redevelopment Agency Debt Service 950,000 Lease Purchase 158,790

Totals $ 3,289,784 $ 3,289,784

52


June 30, 2008

NOTE 6 - CAPITAL ASSETS

Capital Assets activity for the fiscal year ended June 30, 2008 was as follows:

Balance at Prior Period Balance at July 1,2007 Additions Deletions Transfers Adjustments June 30, 2008

Governmental activities: Capital assets, not being depreciated: Land $ 4,587,414 $ 1,560,211 $ $ $ $ 6,147,625 Construction in progress 9,775,659 3,960,085 (2,135,262) 11,600,482 Total capital assets, not being depreciated 14,363,073 5,520,296 (2,135,262) 17,748,107

Capital assets, being depreciated: Infrastructure 52,434,204 3,329,444 2,135,262 57,898,910

Structures and Improvements 30,806,002 3,907,888 (723,847) 33,990,043 Vehicles 5,022,284 1,559,262 6,581,546 Furniture, Equipment, and Books 8,629,890 1,056,877 46,231 9,732,998

Total capital assets being depreciated 96,892,380 9,853,471 2,135,262 (677,616) 108,203,497

Less accumulated depreciation for: Infrastructure (32,610,11 I) (2,063,025) (34,673,136) Structures and Improvements (11,947,204) (I, 172,136) (93,291) (13,212,631) Vehicles (4,057,859) (374,344) 255,155 (4,177,048) Furniture, Equipment, and Books (7,1 II ,831 ) (485,995) 208,549 (7,389,277)

Total accumulated depreciation (55,727,005) (4,095,500) 370,413 (59,452,092)

Total capital assets, being depreciated, net 41,165,375 5,757,971 2,135,262 (307,203) 48,751,405

Total capital assets, net $ 55,528,448 $ 11,278,267 $ $ $ (307,203) $ 66,499,512

Business-type activities: Capital assets, not being depreciated: Land and land improvements $ 1,243,882 $ 200,000 $ $ $ $ 1,443,882 Construction in progress 1,505,724 1,499,329 3,005,053 Total capital assets, not being depreciated 2,749,606 1,699,329 4,448,935

Capital assets, being depreciated: Structures and Improvements 125,252,243 10,198,382 135,450,625 Vehicles 1,704,353 14,264 1,718,617 Equipment 37,848,242 2,817,736 40,665,978

Total capi tal assets, being depreciated 164,804,838 13,030,382 177,835,220

Less accumulated depreciation for: Structures and Improvements (63,809,893) (2,885,901) (66,695,794) Vehicles (1,449,888) (57,659) (1,507,547)

Equipment (30,200,873) (1,954,950) (32,155,823) Total accumulated depreciation (95,460,654) (4,898,510) (100,359,164)

Total capital assets, being depreciated, net 69,344,184 8,131,872 77,476,056

Business-type activities capital assets, net $ 72,093,790 $ 9,831,201 $ $ $ $ 81,924,991

53


June 30, 2008

NOTE 6 - CAPITAL ASSETS (Continued)

Depreciation

Depreciation expense was charged to governmental functions as follows:

General Government $ 200,527 Public Safety 509,400 Public Works 2,887,681 Parks and Recreation 406,135 Community Development 91,757

Total depreciation expense - governmental functions $4.095.500

Depreciation expense was charged to business-type functions as follows:

Hospital $3,361,588 Water 705,364 Wastewater 831.558

Total depreciation expense - business-type functions $4.898,510

NOTE 7 - COMMITMENTS

A. Construction Contracts

As of June 30, 2008, the Medical Center had recorded $3,005,053 as construction in progress representing cost capitalized for various remodeling, major repair, and expansion projects on the Medical Center's premises. The remaining commitments of the Medical Center for future payments on these projects total approximately $2,027,000 at June 30,2008.

The City did not have any outstanding commitments as of June 30, 2008.

B. Operating Leases

The Hospital leases equipment and certain facilities under various noncancelable operating lease arrangements. The leases expire on various dates from 2008 to 2015. Lease expense, consisting mainly of building rent and equipment leases, amounted to approximately $1 ,706,000 in 2008.

Future minimum payments, by fiscal year and in the aggregate, required under noncancelable operating lease obligations consist of the following:

Fiscal Year ending June 30, Amount 2009 $ 1,119,258 2010 985,439 2011 766,674 2012 642,599 2013 283,750 2014-2015 1,424.779 Total minimum lease payments $5.222,199

54


J nne 30, 2008

NOTE 8 - LONG-TERM LIABILITIES

The following is a schedule of long-tenn liabilities for Governmental Activities and Business-type Activities for the fiscal year ended June 30, 2008:

Governmental Activities:

Balance at July 1,2007 Additions Repayments

Prior Period Adj ustrnents

Balance at June 30, 2008

Due Within One Year

Capital leases payable Compensated absences Tax allocation bonds payable

Total

$ 202,366 2,351,747

31,195,000 $ 33,749,113

$ 217,147

$ 217,147

$ (152,846)

$ (152,846)

$

$

$ 49,520 2,568,894

31,195,000 $ 33,813,414

$ 49,520 992,150 280,000

$ 1,321,670

Business-type Activities: Water Fund:

Compensated absences Revenue bonds payable (1997) Revenue bonds payable (2006) Installment sale payable

$ 104,243 2,727,000

33,120,000 1,232,641

$ 100,089 $ (110,000)

(66,275)

$ (2,382,000)

$ 204,332 235,000

33,120,000 1,166,366

$ 115,000 465,000

68,263

Sewer Fund: Compensated absences Revenue bonds payable (1997) Revenue bonds payable (2006) Installment sale payable

78,044 6,363,000

32,500,000 3,537,836

110,594 (245,000) (285,000) (175,515)

2,382,000 188,638

8,500,000 32,215,000

3,362,321

255,000 405,000 180,781

Hospital Fund: Capital leases payable Hospital revenue bonds payable

2,530,211 34,763,672

2,022,323 (1,478,799) (1,129,487)

3,073,735 33,634,185

1,086,391 1,200,000

Total $ 116,956,647 $ 2,233,006 $ (3,490,076) $ $ 115,699,577 $ 3,775,435

1. Governmental Activities - Tax Allocation Bonds Payable

Tax Allocation Bonds. On May 16, 2007, the Redevelopment Agency ofthe City ofEI Centro issued its $25,790,000 Tax Allocation Bonds, Series 2007A and $5,405,000 Tax Allocation Bonds, Series 2007B. A portion of these Series 2007A and Series B Bonds was used to redeem all of the $7,810,000 Series 1996 bonds outstanding at June 30, 2007. The balance of the bond funds finance public improvements, which constitute redevelopment activity within the Project Area, finance low and moderate income housing projects of the Agency within the Project Area. The bonds have a stated interest rate from 4.00% to 5.75% and are payable over a period of thirty years maturing in 2036. The principal balance outstanding at June 30, 2008 is $31,195,000.

The City advance refunded the 1996 Tax Allocation Refunding Bonds to reduce its total debt service over the next thirty years by $1,860,029 and to obtain an economic gain (difference between the present values of the debt service payments on the old and new debt) of $418,368.

The 1996 Tax Allocation Refund ing Bonds were defeased by placing a portion ofproceeds from 2007 Tax Allocation Bonds in an irrevocable trust to provide for all future debt service payments on the defeased bonds. Accordingly, the trust account and the defeased bonds are not included in the financial statements. As of June 30,2008, the unpaid principal balance for the defeased bonds was $0.

55


June 30, 2008

NOTE 8 - LONG-TERM LIABILITIES (Continued)

2. Governmental Activities - Capital Leases

The City has entered into lease agreements as lessee for financing the purchase ofvarious vehicles and heavy equipment and the acquisition of, and improvements to, other real property. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the inception date.

The assets acquired through capital leases are as follows:

Assets Improvements other than buildings $ 67,372 Vehicles 1,692,216 Other Assets 119.918

Totals $1,879,506

The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2008 are as follows:

Fiscal Year Ending June 30.

2009 $ 50,667 Total minimum lease payments 50,667 Less: amount representing interest 1,147 Present value of minimum lease payments $ 49,520

56


June 30, 2008


3. Long-Term Debt Amortization - Government Activities

The annual requirements to amortize long-tenn debt outstanding at June 30, 2008 (other than compensated absences) are as follows:

Fiscal Year 2007 Series A Tax Allocation Bonds Ended June 30, Principal Interest Total

2009 $ 260,000 $ 1,089,738 $ 1,349,738 2010 325,000 1,078,037 1,403,037 2011 375,000 1,064,037 1,439,037 2012 410,000 1,048,337 1,458,337 2013 465,000 1,030,837 1,495,837

2014-2018 3,015,000 4,824,788 7,839,788 2019·2023 4,340,000 4,093,269 8,433,269 2024-2028 7,170,000 2,913,450 10,083,450 2029-2033 5,795,000 1,323,800 7,118,800 2034·2037 3,635,000 339,188 3,974,188

$ 25,790,000 $ 18,805,481 $ 44,595,481

Fiscal Year 2007 Series B Tax Allocation Bonds Ended June 30, Principal Interest Total

2009 $ 20,000 $ 307,843 $ 327,843 2010 35,000 306,302 341,302 2011 45,000 304,062 349,062 2012 55,000 301,262 356,262 2013 65,000 297,902 362,902

2014-2018 510,000 1,415,453 1,925,453 2019-2023 860,000 1,226,453 2,086,453 2024-2028 1,675,000 873,281 2,548,281 2029-2033 1,350,000 372,600 1,722,600 2034-2037 790,000 95,163 885,163

$ 5,405,000 $ 5,500,321 $ 10,905,321

Fiscal Year Capital Leases Payable Ended June 30, Principal Interest Total

2009 $ 49,520 $ 1,147 $ 50,667

$ 49,520 $ 1,147 $ 50,667

Fiscal Year Total Governmental Activities Ended June 30, Principal Interest Total

2009 $ 329,520 $ 1,398,728 $ 1,728,248 2010 360,000 1,384,339 1,744,339 2011 420,000 1,368,099 1,788,099 2012 465,000 1,349,599 1,814,599 2013 530,000 1,328,739 1,858,739

2014-2018 3,525,000 6,240,241 9,765,241 2019-2023 5,200,000 5,319,722 10,519,722 2024·2028 8,845,000 3,786,731 12,631,731 2029-2033 7,145,000 1,696,400 8,841,400 2034-2037 4,425,000 434,351 4,859,351

$ 31,244,520 $ 24,306,949 $ 55,551,469

57


June 30, 2008


4. Business -type Activities - Revenue Bonds

1997 Series A Water and Wastewater Revenue Bonds. On October 22, 1997, the City issued its $11,195,000 (par value) Water and Wastewater Revenue Bonds, 1997 Series A, dated October I, 1997.

A portion of the proceeds of the bonds, together with other available funds, have been applied to refund all ofthe outstanding $4, 150,000 original principal amount ofthe 1989 Water and Wastewater Certificates ofParticipation which had interest rates of6.3% to 6.8%. The 1989 Certificates matured on June I, 2004 and were callable on December I, 1997. Additionally, the Revenue Bonds were issued to advance refund the 1994 Wastewater Certificates ofParticipation which have interest rates of 4.50% to 6.70% and an original par value of $4,460,000. The 1994 Certificates were to mature between June 1,2014 and June 1,2019, and were callable on June 1,2002. The 1989 Certificates were outstanding in the amount of $3,095,000 and the 1994 Certificates were outstanding in the amount of$4,405,000 at October 22, 1997. The balance of the proceeds from the Bonds is being used for additional Wastewater System improvements. The Revenue Bonds were issued at 96.83% of par and after paying issuance costs of$530, III, the net proceeds were $10,664,889.

The portion of the net proceeds from the issuance of the Revenue Bonds relating to the advance refunding were used to purchase U.S. government securities and those securities were placed in an irrevocable trust with an escrow agent to provide debt service payments until the 1994 Certificates were called on June I, 2002. The original issue discount on these bonds is being amortized using the effective interest method over the life ofthe bonds and is included with long-term debt on the balance sheet. The unamortized amount of the original issue discount is $171,128 as of fiscal year-end.

The City has covenanted and agreed to fix, prescribe, and collect rates, fees and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.15 times the installment purchase payments of the 1997 certificates and all parity of obligations due and payable in the Certificate Year following the date of such calculation.

The bonds have a stated interest rate from 4.00% to 5.125% and are payable over a period of thirty years maturing in 2028. The 1997 Series A Water and Wastewater Revenue Bonds maturing on or after October I, 2008, are subject to redemption prior to maturity. The principal balance outstanding at June 30, 2008 is $8,735,000.

2006 Series A Water and Wastewater Revenue Bonds. On June 21, 2006, the City issued its $33,120,000 (par value) Water Revenue Bonds, 2006 Series A and $32,500,000 (par value) Wastewater Revenue Bonds, 2006 Series A.

The proceeds of the sale of the Water and Wastewater Bonds will be used to finance the design, engineering, acquisition, and construction ofcertain repairs, renovations, extension, betterments and improvements to the City's municipal water and wastewater system.

The City has covenanted and agreed to fix, prescribe, and collect rates and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.15 times the installment purchase payments of the 2006 certificates and all parity of obligations due and payable in the Certificate Year following the date of such calculation.

58


June 30, 2008


4. Business-type Activities - Revenue Bonds (Continued)

2006 Series A Water and Wastewater Revenue Bonds (Continued)

The bonds have a stated interest from 4.00% to 5.25% and are payable over a period of 30 years maturing in 2036. The 2006 Series Bonds maturing on or before October 1,2016 are not subject optional redemption prior to their maturities. The Bonds maturing on or after October 1,2017 shall be subject to redemption prior to their respective maturities. The principal balance outstanding at June 30,2008 is $65,335,000.

S. Business-type Activities - Installment Sale Payable

2003 Enterprise Fund Installment Sale. On December 17,2002, the City entered into an agreement with the California Infrastructure and Economic Development Bank to sell water and wastewater bonds, the bonds were issued on March 18, 2004.

The proceeds from the issuance of these bonds, $5,880,100, will be used to fund the Alder water/sewer project.

The City has covenanted and agreed to fix, prescribe, and collect rates, fees and charges for the Water Service and the Wastewater Service so that net revenues are at least 1.10 times the installment purchase payments of the 2003 bonds and all Debt Service obligations due and payable in the fiscal year.

The bonds have a stated interest rate of3.00% and are payable over a period of twenty years maturing in 2022. The 2003 Enterprise bonds maturing on or after October 1,2014, are subject to redemption prior to maturity. The principal balance outstanding at June 30, 2008 is $4,528,687.

6. Business-type Activities - Hospital Long Term Debt

EI Centro Financing Authority Insured Hospital Revenue Bonds, Series 2001. On April 26, 2001, the Hospital issued $39,300,000 in revenue bonds. The proceeds of the Bonds were used to finance the construction and equipping the Hospital's 66,000 square foot expansion.

The bonds have a stated interest rate from 4.25% to 5.375% and are payable over a period of thirty years maturing in 2026. The principal balance outstanding at June 30, 2008 is $34,000,000.

7. Business-type Activities - Capital Leases Payable

Capital Leases. The Hospital has entered into certain capital lease agreements under which the related equipment will become the property of the Hospital when all tenns of the lease agreements are met. These Capital leases are reflected in the statement ofnet assets and are being amortized over the life of the leases. Capitalized lease interest rates range from 3.83% to 8.25%.

At June 30, 2008, assets held under capital leases amounted to $8,966,000. Lease commitments on these leases including interest are as follows:

Fiscal Year Ending Principal June 30. Principal and Interest

2009 $ 1,086,391 $1,167,333 2010 714,187 768,308 2011 655,372 686,399 20J2 506,968 520,586 2013 110,817 111,543

$3.073.735 $3.254.169

59


June 30, 2008


8. Long-Term Debt Amortization - Business-type Activities

The annual requirements to amortize long-term debt outstanding at June 30, 2008 (other than compensated absences) are as follows:

Fiscal Year 1997 Revenue Bonds - Water Ended June 30, Principal Interest Total

2009 $ 115,000 $ 8,463 $ 123,463 2010 120,000 2,880 122,880

$ 235,000 $ 11,343 $ 246,343

Fiscal Year 1997 Revenue Bonds - Wastewater Ended June 30, Principal Interest Total

2009 $ 255,000 $ 426,161 $ 681,161 2010 265,000 413,808 678,808 2011 280,000 400,658 680,658 2012 295,000 386,493 681,493 2013 310,000 371,368 681,368

2014-2018 1,795,000 1,597,078 3,392,078 2019-2023 2,310,000 1,074,202 3,384,202 2024-2028 2,990,000 398,725 3,388,725

$ 8,500,000 $ 5,068,493 $ 13,568,493

Fiscal Year 2003 Installment Sale Payable - Water Ended June 30, Principal lnterest Total

2009 $ 68,263 $ 34,991 $ 103,254 2010 70,311 32,943 103,254 2011 72,420 30,834 103,254 2012 74,593 28,661 103,254 2013 76,831 26,423 103,254

2014-2018 420,142 96,129 516,271 2019-2023 383,806 29,211 413,017

$ 1,166,366 $ 279,192 $ 1,445,558

Fiscal Year 2003 Installment Sale Payable - Wastewater Ended June 30, Principal Interest Total

2009 2010 2011 2012 2013

2014-2018 2019-2023

$ 180,781 186,204 191,790 197,544 203,469

1,112,658 1,289,875

$ 98,158 92,653 86,983 81,]43 75,]28

278,903 99,028

$ 278,939 278,857 278,773 278,687 278,597

1,391,561 1,388,903

$ 3,362,321 $ 8] 1,996 $ 4,174,317

60


June 30,2008

NOTE 8 - LONG~TERM LIABILITIES (Continued)

8. Long-Term Debt Amortization - Business-type Activities (Continued)

Fiscal Year 2006 Series A Water Revenue Bonds Ended June 30, Principal Interest Total

2009 $ 465,000 $ 1,566,519 $ 2,031,519 2010 470,000 1,547,819 2,017,819 2011 615,000 1,526,119 2,141,119 2012 640,000 1,501,019 2,141,019 2013 665,000 1,474,919 2,139,919

2014-2018 3,765,000 6,941,303 10,706,303 2019-2023 4,825,000 5,025,613 9,850,613 2024-2028 6,765,000 4,608,737 11,373,737 2029-2033 8,600,000 2,759,337 11,359,337 2034-2036 6,310,000 508,462 6,818,462

$ 33,120,000 $ 27,459,847 $ 60,579,847

Fiscal Year 2006 Series A Wastewater Revenue Bonds Ended June 30, Principal Interest Total

2009 $ 405,000 $ 1,530,562 $ 1,935,562 2010 520,000 1,512,062 2,032,062 20]1 540,000 1,490,863 2,030,863 2012 565,000 1,468,763 2,033,763 2013 585,000 1,445,763 2,030,763

2014-2018 3,350,000 6,844,688 10,194,688 2019-2023 4,185,000 6,031,725 10,216,725 2024-2028 6,900,000 4,688,144 11,588,144 2029-2033 8,750,000 2,806,450 11,556,450 2034-2036 6,415,000 516,730 6,931,730

$ 32,215,000 $ 28,335,750 $ 60,550,750

Fiscal Year Hospital Revenue Bonds, Series 2001 Ended June 30, Principal Interest Total

2009 2010 2011 2012 2013

2014-2018 2019-2023 2024-2026

Less bond discount

$ 1,200,000 1,250,000 1,310,000 1,369,000 1,439,000 8,445,000

10,925,000 8,062,000

34,000,000 (365,815)

$ 33,634,185

$ 1,779,410 ],726,6] 0 1,670,360 1,610,100 1,537,460 6,453,850 4,071,578

876,121

19,725,489

$ 19,725,489

$ 2,979,410 2,976,610 2,980,360 2,979,100 2,976,460

14,898,850 14,996,578 8,938,121

53,725,489 (365,815)

$ 53,359,674

61


June 30, 2008


8. Long-Term Debt Amortization - Business-type Activities (Continued)

Fiscal Year Ended June 30, Principal

Capital Leases Payable Interest Total

2009 2010 2011 2012 2013

$ 1,086,391 714,187 655,372 506,968 110,817

$ 80,942 54,121 31,027 13,618

726

$ 1,167,333 768,308 686,399 520,586 111,543

$ 3,073,735 $ 180,434 $ 3,254,169

Fiscal Year Ended June 30, Principal

Total Business-type Activities Interest Total

2009 2010 2011 2012 2013

2014-2018 2019-2023 2024-2028 2029-2033 2034-2036

$ 3,775,435 3,595,702 3,664,582 3,648,105 3,390,117

18,887,800 23,918,681 24,717,000 17,350,000 12,725,000

$ 5,525,206 5,382,896 5,236,844 5,089,797 4,931,787

22,211,951 16,331,357 10,571,727 5,565,787 1,025,192

$ 9,300,641 8,978,598 8,901,426 8,737,902 8,321,904

41,099,751 40,250,038 35,288,727 22,915,787 13,750,192

Less bond discount 115,672,422

(365,815) 81,872,544 197,544,966

(365,815)

$ 115,306,607 $ 81,872,544 $ 197,179,151

NOTE 9 - RISK MANAGEMENT

The City is exposed to various risks ofloss related to workers' compensation claims, torts, the theft of, damage to, and destruction ofassets, errors and omission, natural disasters, and group health insurance claims. To deal with these risks, the City has adopted a formal risk management program. As part of this program various risk control techniques, including employee accident prevention training, are being implemented to minimize accident-related losses. An integral part of the program, however, continues to be insuring arrangements.

A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement

The City is a member of the CALIFORNIA JOINT POWERS INSURANCE AUTHORITY (Authority). The Authority is composed of 119 California public entities and is organized under a joint powers agreement pursuant to California Government Code §6500 et seq. The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group-purchased insurance for property and other coverages. The Authority's pool began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board ofDirectors. The Board operates through a 9-member Executive Committee.

62


June 30,2008

NOTE 9 - RISK MANAGEMENT (CONTINUED)

A. Description of Self-Insurance Pool Pursuant to Joint Powers Agreement (Continued)

Audited financial statements for the Authority are available from Assistant Executive Officer, at Califomia Joint Powers Insurance Authority, 8081 Moody Street, La Palma, Califomia 90623.

B. Insurance Programs of the Authority

General Liability Each member government pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Costs are spread separately between police and non-police. Costs are spread to members as follows: the first $30,000 of each occurrence is charged directly to the member's primary deposit; costs from $30,000 to $750,000 and the loss development reserves associated with losses up to $750,000 are pooled based on the member's share oflosses under $30,000. Losses from $750,000 to $5,000,000 and the associated loss development reserves are pooled based on the payroll. Costs of covered claims from $5,000,000 to $50,000,000 are currently paid by excess insurance. The protection for each member is $50,000,000 per occurrence and $50,000,000 annual aggregate. Administrative expenses are paid from the Authority's investment earnings.

Payments to the Authority for property and casualty coverage are recorded as expenditures in the General Fund.

Workers Compensation The City also participates in the workers' compensation pool administered by the Authority. Each member pays a primary deposit to cover estimated losses for a fiscal year (claims year). After the close of a fiscal year, outstanding claims are valued. A retrospective deposit computation is then made for each open claims year. Claims are pooled separately between public safety and non-public safety. Each member has a retention level of $50,000 for each loss and this is charged directly to the member's primary deposit. Loss from $50,000 to $100,000 and the loss development reserve associated with losses up to $1 00,000 are pooled based on the member's share of losses under $50,000. Losses from $100,000 to $2,000,000 and employer's liability losses from $5,000,000 to $10,000,000 and loss development reserves associated with those losses are pooled based on payroll. Losses from $2,000,000 to $5,000,000 are pooled with California State Association of Counties-Excess Insurance Authority members. Costs from $2,000,000 to $300,000,000 are transferred to reinsurance carriers. Costs in excess of$300,000,000 are pooled among the members based on payroll. Protection is provided per statutory liability under Califomia Worker's Compensation law. Administrative expenses are paid from the Authority's investment earnings.

The City is responsible for workers' compensation claims incurred before July 1, 1997, under its selfinsured program. Estimated unpaid claims reflect the maximum probable outcome of all claims without regard to the City's self-insured retention level. Reserves are assessed for indemnity, medical, and expense categories. Indemnity claims are estimated on the basis of computations, which will develop the probable total future cost ofcompensation and medical benefits due or potentially due. Medical-only claims are estimated on the basis of computations, which will develop the total future cost of medical benefits due or potentially due. Liability estimates are not reduced for third party recoveries, subrogation recoveries, or aggregate excess insurance coverage.

Payments for workers' compensation coverage are recorded as an expense to Workers' Compensation Internal Service Fund.

63


June 30, 2008

NOTE 9 - RISK MANAGEMENT (Continued)

B. Insurance Programs of the Authority (Continued)

Purchased Insurance

Environmental Insurance The City participates in the pollution legal liability and remediation legal liability insurance, which is available through the Authority. The policy covers sudden and gradual pollution ofscheduled property, streets, and storm drains owned by the City. Coverage is on a claimsmade basis. There is a $50,000 deductible. The Authority has a limit of $50,000,000 for the 3-year period from July 1,2005 through July 1, 2008. Each member of the Authority has a $10,000,000 limit during the 3-year term of the policy.

Property Insurance The City participates in the all-risk property protection program ofthe Authority. This insurance protection is underwritten by several insurance companies. The City's property is currently insured according to a schedule ofcovered property submitted by the City to the Authority. The City property currently has all-risk property insurance protection in the amount of$40,847,051. There is a $5,000 deductible per occurrence except for non-emergency vehicle insurance which has a $1,000 deductible. Premiums for the coverage are paid annually and are not subject to retroactive adjustments.

Crime Insurance The City purchases crime insurance coverage in the amount of $1,000,000 with $2,500 deductible. The fidelity coverage is provided through the Authority. Premiums are paid annually and are not subject to retroactive adjustments.

Special Event Tenant User LiabilityInsurance The City further protects against liabilitydamages by requiring tenant users of certain property to purchase low-cost tenant user liability insurance for certain activities on City property. The insurance premium is paid by the tenant user and is paid to the City according to a schedule. The City then pays for the insurance. The insurance is arranged by the Authority.

During the past three fiscal (claims) years none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year.

Group Health Insurance

The "Risks ofLoss" to the City under the City sponsored group health insurance plans include major medical, dental, and vision claims. Prior to August 1, 1999, the City contracted with Pacific Mutual Insurance Company for a fully insured plan for medical and dental coverage.

On August 1, 1999, the City implemented a self-funded plan providing for the same benefits as the Pacific Mutual plan. The City's liability is limited to $100,000 per employee with an overall cap of 125% of projected medical claims and 100% ofdental and vision claims.

Medical Malpractice Insurance Coverage

The Hospital purchases commercial malpractice liability insurance on an occurrence basis. The policy coverage is $10,000,000 per occurrence with nominal deductible and no aggregate limitations. The Hospital accrues the deductible for all open claims.

64


June 30 t 2008

NOTE 10 - PROPRIETARY FUNDS INFORMATION

The City maintains five enterprise funds. The Water and Wastewater funds account for the provision of basic utility services to all citizens. The Transit fund provides demand-response transit services. The Solid waste fund accounts for trash collection throughout the City. The Hospital is an acute care facility providing health care to the community and surrounding area.

NOTE 11 - CONTINGENT LIABILITIES

Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor agencies, principally the federal government and the State of California. Any disallowed claims, including amounts already collected, may constitute a liabilityofthe applicable funds. The amount, if any, ofexpenditures which may be disallowed by grantors cannot be determined at this time although the City expects such amounts, if any, to be immaterial.

The City is a defendant in various lawsuits and the Hospital is subject to legal proceedings and claims that arise in the ordinary course of its business. In the opinion ofCity and Hospital management, the ultimate disposition of these lawsuits and proceedings will not have a material impact upon the financial condition of the City or the Hospital.

NOTE 12-NETPATIENTREVENUE

Gross patient service revenue is recognized on the basis ofusual and customary charges. The Hospital has agreements with third-party payors that provide for payments to the Hospital at amounts different from its established rates. The difference between gross charges generated from established rates and the related payments from third-party payors for the fiscal years ending June 30, 2008 and 2007 are reflected as contractual discounts and allowance for bad debts, as shown below:

2008 2007 Gross patient service revenue $ 361,327,924 $269,609,527 Less: Contractual discounts (269,347,896) (183,137,240) Less: Allowance for bad debts ( 8.615,294) ( 11.862,820)

$ 83,364,734 $ 74,609.467

The Hospital is reimbursed for services provided to patients under certain programs administered by governmental agencies. Laws and regulations governing the Medicare and Medi-Cal programs are complex and subject to interpretation. The Hospital believes that it is in compliance with all applicable laws and regulations and it is not aware of any pending or threatened investigations involving allegations of potential wrongdoing. While no such regulatory inquiries have been made, compliance with such laws and regulations can be subject to future government review and interpretation as well as significant regu latory action including fines, penalties, and exclusion from the Medicare and Medi-Cal programs.

A summary of the payment arrangements with these agencies is as follows:

Medicare

Inpatient acute care services rendered to Medicare program beneficiaries are paid at prospectively determined rates per discharge. These rates vary according to a patient classification system that is based on clinical, diagnostic and other factors. Inpatient nonacute services, certain outpatient services and defined capital and medical education costs related to Medicare beneficiaries are paid based on a cost reimbursement methodology. The Hospital is reimbursed for cost reimbursable items at a tentative rate, with final settlement determined after submission ofannual cost reports by the Hospital and audits thereof by the Medicare fiscal intermediary.

65


June 30, 2008

NOTE 12 - NET PATIENT REVENUE (Continued)

Medicare (Continued)

The Hospital's classification of patients under the Medicare program and appropriateness of their admission are subject to an independent review by a peer review organization under contract with the Hospital. Approximately 34% in 2008 and 38% in 2007 ofgross patient service revenue was derived from services provided to Medicare patients.

Medi-Cal

The Medi-Cal program accounted for approximately 27% in 2008 and 24% in 2007 of gross patient service revenue. The Hospital is reimbursed under a cost reimbursement methodology for Medi-Cal beneficiaries.

Premium Revenue

During 1996, the Hospital entered into a joint powers agreement with Pioneers Memorial Hospital District. The Hospitalsjointlyestablished the Imperial Valley Health Resources Authority (IVHRA). Due to the existence ofthe joint powers agreement, the Hospitals were able to enter into a contract with a Health Maintenance Organization (HMO) to provide medical services to subscribing participants. Under the agreement with the HMO, IVHRA receives monthly capitation payments based on the number of HMO participants, regardless of services actually performed by either Hospital. The Hospital and Pioneers Memorial Hospital in tum, billlVHRA for services provided to subscribing patients through a third-party administrator.

The Hospital has also entered into payment agreements with certain commercial insurance carriers, health maintenance organizations, and preferred provider organizations. Payments to the Hospital under these agreements include discounts from established charges.

NOTE 13 - DEFERRED COMPENSATION PLAN

The City offers its employees a deferred compensation program created in accordance with Internal Revenue Code Section 457. The program, available to all full-time City employees at their option, permits participants to defer a portion oftheir salary until future years. The deferred compensation is not available to participants until termination, retirement, death, or unforeseeable emergency.

All amounts ofcompensation deferred under the program, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are held for the exclusive benefit of the participants.

NOTEI4-0THERPOSTEMPLO~NTBENEmTS

The City provides postretirement health and dental care benefits, as provided for in various collective bargaining agreements for retirees that meet certain criteria. The City pays 100 percent of the employee's premium for health and dental care coverage for qualifYing management employees until age 65 and a portion ofthe employee's premium for qualifying non-management employees. Retirees may not convert the benefit into an in-lieu payment to secure coverage under independent plans.

As of fiscal year-end, thirteen retired management employees and nineteen retired non-management were receiving the above benefits. The City finances the plan on a pay-as-you-go basis. For the fiscal year ended June 30, 2008, the City recognized $167,131 of incurred expenditures under the plan.

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June 30, 2008

NOTE 15 - DEFINED BENEFITS PENSION PLAN

A. Public Employees Retirement System (PERS)

Plan Description

The City of EI Centro defined benefit pension plan, (the 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 (CaIPERS), an agent multiple-employer plan administered by CaIPERS, which acts as a common investment and administrative agent for participating public employers within the State ofCalifomia. A menu ofbenefit provisions as well as other requirements is established by State statutes within the Public Employee's Retirement Law. The City of EI Centro has adopted various optional benefits. CalPERS issues a separate comprehensive annual financial report. Copies of the CaIPERS' annual financial report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, CA 95814.

Funding Policy

Active Plan members are required to contribute 7% (9% for safety employees) oftheir annual covered salary. The City makes the contributions required of City employees on their behalf and for their account. The City ofEI Centro is required to contribute the actuarially determined remaining amounts necessary to fund the benefits for its members. The actuarial methods and assumptions used are those adopted by the CalPERS Board ofAdministration. The required employer contribution rate for fiscal 200712008 was 6,967% (45.20% for safety employees). The contribution requirements of the plan mem bers are establ ished by State statute and the employer contribution rate is establ ished and may be amended by CaIPERS. The City's contributions to CalPERS for the fiscal years ending June 30, 2008, 2007, and 2006 for the Miscellaneous Plan were $1,115,155, $986,071, and $957,644, respectively, and equal 100% of the required contributions for each fiscal year. The City's contributions to CalPERS for the fiscal years ending June 30, 2008, 2007, and 2006 for the Safety Plan were $3,015,047, $2,640,094, and $2,359,710, respectively, and equal 100% of the required contributions for each fiscal year.

B. EI Centro Regional Medical Center Retirement Income Plan

Plan Description

The EI Centro Regional Medical Center Retirement Income Plan (the Plan), a single-employer defined benefit pension plan, is a separate trust fund ofthe City and is administered by the Hospital. The Plan covers all employees ofthe Hospital who are not members ofa collective bargaining unit. The Plan provides retirement and death benefits to plan members and beneficiaries. The Hospital's Board of Directors has the authority to establish and amend benefit provisions. Additionally information may be obtained by acquiring to EI Centro Regional Medical Center, 1415 Ross Ave, EJ Centro, CA 92243.

Funding Policy

The contribution requirements ofplan members and the Hospital are established and may be amended by the Hospital's Board of Directors. Plan members are required to contribute 3% oftheir annual covered salary. The Hospital is required to contribute at an actuariallydetermined rate. The current rate is 5.9% of annual covered payroll.

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June 30, 2008

NOTE 15 - DEFINED BENEFITS PENSION PLAN (Continued)

B. EI Centro Regional Medical Center Retirement Income Plan (Continued)

Annual Pension Cost and Net Pension Obligation

The Hospital's annual pension cost and net pension obligation to the Plan for the current fiscal year were as follows:

June 30, 2008 2007

Annual required contribution $1,884,900 $ 1,749,900 Interest on net pension obligation (53,800) (71,600) Adjustment to annual required contribution 81,200 108,200 Annual pension cost 1,912,300 1,786,500 Contributions made (I ,995,700) (1,548,600) Increase in net pension obligation (83,400) 237,900 Net pension obligation beginning of fiscal year (717,000) (954,900) Net pension obligation end of fiscal year $ (800.400) $(717,000)

The following information (which has not been audited by independent auditors) was provided to the Hospital by the Plan's actuaries, Creative Benefit Strategies, Inc., per their actuarial valuation dated January 1,2008. The Hospital's contribution for the fiscal years ending June 30, 2008, 2007, and 2006, were $1,912,300, $1,786,500, and $1,766,500, respectively, and the net pension obligations for the fiscal years ending June 30, 2008, 2007, and 2006, were ($800,400), ($717,000), and ($954,900).

NOTE 16 - NET ASSETS AND FUND BALANCES

GASB Statement No. 34 adds the concept ofNet Assets, which is measured on the full accrual basis, to the concept of Fund Balance, which is measured on the modified accrual basis.

A, Net Assets

Net Assets are divided into three captions under GASB Statement No. 34. These captions apply only to net assets as determined at the government-wide level and are described below:

Invested in CapitalAssets, net of related debt describes the portion of net assets which is represented by the current net book value of the City's capital assets, less the outstanding balance of any debt issued to finance these assets.

Restricted describes the portion of net assets which is restricted as to use by the terms and cond itions ofagreements with outside parties, governmental regulations, laws, or other restrictions which the City cannot unilaterally alter. These principally include debt service requirements, and redevelopment funds restricted to low and moderate income housing purposes,

Unrestricted describes the portion of net assets which is not restricted as to use.

The government-wide statement of net assets reports $65,835,426 of restricted net assets..

B. Fund Balances

Fund Balances consist of reserved and unreserved amounts. Reserved fund balances represent that portion of fund balance which is legally segregated.

68


June 30, 2008

NOTE 17 - INVESTMENT IN JOINT VENTURE - EL CENTRO REGIONAL MEDICAL CENTER (HOSPITAL)

The Medical Center has a fifty (50) percent interest in Imperial Valley Health Resources Authority (IVHRA) which is accounted for under the equity method. Additional infonnation regarding the financial information for the joint venture can be obtained by acquiring at El Centro Regional Medical Center, 1415 Ross Ave, EI Centro, CA 92243. Imperial Valley Health Resources Authority does not hold any assets. The Medical Center and the other agency involved in the joint venture reimburse the Imperial Valley Health Resources Authority monthly for expenses related to consultants and other expenses.

NOTE 18 - PRIOR PERIOD ADJUSTMENTS

A prior period adjustment of ($307,203) in the government-wide statement was due to an overstatement of accumulated depreciation of $370,413, an overstatement of structures & improvements of($723,847), and an understatement of furniture, equipment, and books of$46,231.

A prior period adjustment of $435,847 in the government-wide statement was due to an understatement ofdeferred loss on refunding.

A prior period adjustment of ($129,702) was made to the government-wide statement, the Water Fund, and to the Wastewater Fund due to an overstated ofdeferred charges in the amountof($15,712) in the Water fund and an overstatement of deferred charges in the amount of ($113,990) in the Wastewater Fund.

A prior period adjustment of$717,000 was made to the government-wide statement and the Hospital Fund due to an understatement ofNet Pension Obligation-Overfunded in the prior year.

A prior period adjustment of$41,447 was made to the government-wide statement and to the Water Fund due to an overstatement of interest payable in the previous year.

A prior period adjustment of ($41,447) was made to the government-wide statement and to the Wastewater Fund due to an understatement of interest payable in the previous year.

A prior period adjustment of $2,382,000 was made to the government-wide statements and to the Water Fund due to an overstatement of long-term debt in the previous year.

A prior period adjustment of ($2,382,000) was made to the government-wide statements and to the Wastewater Fund due to an understatement of long-tenn debt in the previous year.

NOTE 19-5UBSEQUENTEVENTS

On September 30,2008, the Community Facilities District No. 2007-1 (Legacy Ranch) Special Tax Bonds, 2008 Series were issued in the amount of $1,220,000 by the City of El Centro Community Facilities District No. 2007-1 (Legacy Ranch) which was established by the City pursuant to a Fiscal Agent Agreement, dated October 1, 2008. The Bonds are being issued to (i) finance certain capital facilities fees relating to authorized public improvements, (i i) fund a reserve account for the Bonds, and (iii) pay the costs of issuance ofthe Bonds. The Bonds will mature on September I ofeach year and shall bear interest between 5.10% and 6.00%. The Bonds are limited obligations of the District. The Bonds are payable solely from the Special Taxes to be levied on and collected from the owners of the taxable land within the District, and from certain other funds pledged under the Fiscal Agent Agreement. Neither the faith and credit nor the taxing power of the District, the City, the County of Imperial, the State ofCalifornia or any political subdivision thereof is pledged to the payment of the Bonds. Except for the special taxes, no other revenues or taxes are pledged to the payment of the Bonds. The Bonds are not general or special obligations of the City nor general obligations of the District, but are limited obligations ofthe District payable solely from special taxes and amounts held under the Fiscal Agent Agreement.

69

REQUIRED SUPPLEMENTARY INFORMATION

70

CITY OF EL CENTRO Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual

For General Fund

the Fiscal Year Ended June 30, 2008

Revenues Taxes Licenses and Permits Intergovernmental Charges for Services Fines and Forfeitures Interest Other

Total Revenues

Budgeted Amounts Original Final

$ 13,127,000 $ 13,127,000 405,400 405,400

7,017,570 7,039,558 1,800,500 1,820,837

208,000 208,000 68,000 250,000

965,000 835,737 23,591,470 23,686,532

Actual Amounts

$ 13,380,580 481,803

7,214,948 1,700,879

219,396 480,572

1,024,623 24,502,801

Variance with Final Budget

Positive (Negative)

$ 253,580 76,403

175,390 (119,958)

11,396 230,572 188,886 816,269


General Government Public Safety Public Works Parks and Recreation Community Development

Capital Outlay Total Expenditures

3,113,929 15,954,502

1,998,182 2,398,959 2,465,327

521,489 26,452,388

3,149,157 15,944,249

1,998,182 2,364,659 2,477,295

634,223 26,567,765

2,977,024 14,960,060

1,728,249 2,338,896 2,318,929 1,455,658

25,778,816

172,133 984,189 269,933 25,763

158,366 (821,435) 788,949

Excess (Deficiency) of Revenues Over (Under) Expenditures (2,860,918) (2,881,233) (1,276,015) 1,605,218

Other Financing Sources (uses): Transfers In Transfers Out

Total Other Financing Sources (Uses)

2,287,036 (106,955)

2,180,081

2,287,036 (106,955)

2,180,081

1,856,463 (137,726)

1,718,737

(430,573) (30,771)

(461,344)

Net Change in Fund Balance (680,837) (701,152) 442,722 1,143,874

Fund Balance - July I, 2007 [2,550,736 12,550,736 12,550,736

Fund Balance - June 30, 2008 $ 11,869,899 $ 11,849,584 $ 12,993,458 $ 1,143,874

71

OTHER SUPPLEMENTARY INFORMATION

73

SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE

BUDGET AND ACTUAL

MAJOR GOVERNMENTAL FUND

74

CITY OF EL CENTRO SCHEDULE OF REVENUES, EXPENDITURES,

AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL

REDEVELOPMENT AGENCY CAPITAL PROJECTS FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Variance with Final Final Budget

Budget Actual Positive (Negative)

Revenues

Interest $ 20,000 $ 1,025,774 $ 1,005,774

Other 347,000 288,678 (58,322)

Total Revenues 367,000 1,314,452 947,452

Expenditures

Current: Community development 2,056,390 1,448,380 608,010

Capital outlay 7,054,800 380,803 6,673,997

Total Expenditures 9,111,190 1,829,183 7,282,007

Excess (deficiency) of Revenues over (under) Expenditures (8,744,190) (514,731) 8,229,459

Other Financing Sources (uses):

Transfers in 950,000 950,000

Sales of property 754,878 (754,878)

Total Other Financing Sources (Uses) 754,878 950,000 195,122

NET CHANGE IN FUND BALANCE (7,989,312) 435,269 8,424,581

Fund Balance· July 1,2007 20,259,897 20,259,897

Fund Balance· June 30, 2008 $ 12,270,585 $ 20,695,166 $ 8,424,581

75

COMBINING STATEMENTS NONMAJOR GOVERNMENTAL FUNDS

SPECIAL REVENUE FUNDS

Special revenue funds are used to account for specific revenues that are legally restricted to expenditure for particular purposes

Gas Tax - This fund is used to account for the City's share of California State gas tax revenue expended for street improvements and maintenance.

Transportation Article 8 - This fund is used to account for State of California Transportation Development Act funds expended for street maintenance.

Community Development Block Grant (CDBG) - This fund is used to account for revenue and expenditures under the State of California CDBG program.

Library Assistance - This fund is used to account for the expenditure of private donations and grants from the State of California Public Library Fund.

Bus Shelter - This fund is used to account for revenue and expenditures that will be utilized in the maintenance of the Bus Shelters within the City.

Transportation Article 3 - This fund is used to account for State of California Transportation Development Act Funds expended for bicycle and pedestrian projects.

Home Program - This fund is used to account for the expenditure of grant funds received under the California Department ofHousing and Community Development Investment Partnership Program.

Rental Rehab HUD - This fund is used to account for revenues and expenditures associated with the California Department of Housing and Urban Development rental rehabilitation program.

Traffic Safety - This fund is used to account for traffic fines and forfeitures received by the City and used for traffic control supplies and equipment.

Wake Ave Extension - This fund is used for the collection and disbursement of mitigation fees for the construction of Wake Ave.

Traffic Congestion Relief - This fund is used to account for transportation funding from sales and use tax revenues expended for street maintenance, rehabilitation and reconstruction

Recreation Projects - This fund is used to account for contributions expended for recreation supplies and equipment.

Asset Forfeiture - This fund is used to account for revenues distributed by the Department of Justice from drug related seizures.

76

Local Transportation Authority - This fund is used to account for the revenue and expenditure of funds generated by a one-half cent voter approved sales tax earmarked for street improvements.

Home Grants - This fund is used to account for revenues and expenditures associated with the Home program.

OTS Grant - This fund is used to account for the expenditure of grant funds received from the State of California, Office of Traffic Safety.

State COPS SLESF - This fund is used to account for the revenue and expenditure of funds from the Supplemental Law Enforcement Services Fund (SLESF) pursuant to Section 30061 of the California Government Code (AB 3229).

Annexation Fees - This fund is used to account for the collection and expenditure of annexation fees earmarked for public improvements.

HUD Entitlement - This fund is used to account for all revenues and expenditures authorized using the Entitlement guidelines.

CDBG Program Income - This fund is used to account for the collection of Community Development Block Grant loans made from program income.

Housing Enabled by Local Partnership - Program set up to provide for a source of funds from which to make mortgage loans to first time home buyers.

CALHOME Program - This program provides mortgage assistance loans to first time home-buyers.

Development Impact Fees - This fund is used to account for the collection and expenditure of development impact fees earmarked for public infrastructure improvements made necessary because of growth.

SIMPLOT - This fund is used to account for the expenditures of funds received in connection with the settlement of environmental litigation.

FHWA Grants - This fund is used to account for the expenditure of grant funds from the FHWA received through the California Department of Transportation.

Soft Drink Franchise - This fund is used to supplement Parks and Recreation activities.

Integrated Waste Management - Fund set up for the purpose of solid waste management and source reduction recycling.

Used Oil Grant - This fund is used for the establishment and maintenance of local used oil collection programs.

Per Capita Parks Grant - These funds are to be used for the acquisition and development of neighborhood, community, and regional parks and recreation land and facilities.

Department of Conservation - This fund is used to administer recycling activities through collection and public education.

77

Tire Clean-up Grant - This grant provides funds for the clean-up of tires that have been illegally dumped in our communities.

Household Hazardous Waste - This program is to establish a permanent household hazardous waste collection facility and providing mobile collection events to service remote and underserved residents.

1-8 Imperial Ave. Overpass - This fund is used to account for fees charged on new developments for the overpass project.

Public Education & Amnesty Grant - This program is designed to educate the public about proper hauling and recycling of tires.

Used Oil Opportunity Grant -This grant provides funds for the collection of used oil.

EDA Revolving - This fund is used to hold excess EDA Loan funds collected and not currently used for loans.

Police and Fire Operational - This fund was set up to collect fees to mitigate impact to police and fire services from new developments.

Rural Business Enterprise Grant - This fund is to provide business training to the tenants of the EI Centro Business Incubator.

Legacy Ranch CFD - This fund is used to account for the activity related to the new Community Facilities District.

Legacy Ranch L&LD - This fund is used to account for the activity related to the landscape & lighting district.

IV Commons - This fund is used to account for the activity related to the deposits received for the IV Commons.

Fire Mitigation - This fund is used to account for funds used for fire mitigation.

2002 Resource Bond Act - This grant provides funds for local assistance to the City as part of the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of2002.

Redevelopment Housing - This fund is established to account for 20% of the redevelopment tax increment receipts, which are required to be set aside for low and moderate income housing.

78

CAPITAL PROJECTS FUND

Capital projects funds are used to account for the acquisition and construction of major capital facilities other than those financed by proprietary funds and trust funds

Orange Ave Regional Lift Station - This fund is used to account for revenue and expenditures charged for the development of the lift station.

Park Development - This fund is used to account for fees charged on new development for the development and maintenance of parks.

Drainage Facilities - This fund is used to account for the fees charged on new development for drainage facilities.

Post Office Grant - This grant will be used for the renovation of the Old Post Office Pavilion.

Lotus Parallel - This fund is used to account for revenue and expenditures incurred in the development of the future water and sewer trunk from water and wastewater plants to 1-8.

lID Facility Crossing - This fund is used to collect monies from developers for the installation of siphon pipes to allow for the Orange and Hamilton Avenue crossing.

8th Street Overpass Bridge - This fund is used to collect monies from developers for the lighting of the bridge.

BridgelRoad Improvements - This fund is used to collect monies from developers for the bridge and road improvements on Dogwood Rd and related areas.

Federal Highway Administration - This fund is used to account for expenditures of grant funds from the FHWA received through the California Department of Transportation used on miscellaneous projects.

Proposition Ib - This grant provides funds used for safety improvements and repairs to state highways, upgrades to freeways to reduce congestion, repairs to local streets and roads, upgrades to highways along major transportation corridors, improvement to seismic safety of local bridges, expansion of public transit, and reduction of air pollution.

La Brucherie Green Belt - This fund is used to account for the construction of a non-motorized pathway along La Brucherie Road.

Colonia-EI Dorado Street - This fund is used to account for grant funds received under the State Community Development grant program for street improvements in the EI Dorado Colonia.

Buena Vista Landscaping & Lighting District - This fund is used to account for the activity related to the new district.

79

DEBT SERVICE FUNDS

Debt service funds are used to account for the accumulation of resources and repayment of debt from governmental resources

Redevelopment Agency - This fund is used to account for debt service payments for the outstanding bonds issued by the Redevelopment Agency.

Lease Purchase - This fund is used to account for lease payments on various lease purchase arrangements.

80

CITY OF EL CENTRO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS Fiscal Year Ended June 30, 2008

00-

Revenues: Intergovernmental Taxes Charges for 'ervices Interest Other

TOlal Revenues

Expenditures; Current; General Govenunent Public Safety Public Works Parks and Recreation Community Development

Capital Outlay Debt Service: Prinicipal Inlercst

TOlal Expenditures

Excess (Deficiency) oCRevenues over (Under) Expenditures

Other Financing Sources (Uses);

Transfers In Transfers Out


8th St. Overpass Bridge

699

699

699

BridgelRoad Improvement

195,065 385

195,450

195,450

Capital Project Fund.

Federal Highway Proposition Administration I B

518,113 $ 676,683

518,113 676,683

575,151

575,151

(57,038) 676,683

La Brucherie Green Bell

$

291

12L

-

291

Colonia-EI Dorado Street

$ 349,641

3,505

353,146

122,114

227,978

--

350,092

3,054

Buena Vista Landscaping

$

27,803

7,349

35,152

5,275

5,275

29,877

Dcbt Service

Redevelopment

~ Lease Purchase

$

4,417,356

448,304

4,865,660

152,846 1,871,039 5,944

1,871,039 158,790

2,994,621 (158,790)

158,790 (950,000)

(950,000) 158,790

Nonmajor

Govenunenta! Funds

7,642,146 5,634,630 1,377,034 1,839,945 1,888,769

18,382,524

528,402

2,074,,604 571,628

1,954,287 5,310,996

152,846 1,876,983

12,469,746

5,912,778

483,321 (3,152,058)

(2,668,737)

Net Change in Fund Balances

Fund Balances- July I, 2007

Fund Balances - June 30, 2008

699

1,715

2,414

195,450

22,414

217,924

(57,038)

47,021

(lO,OI7)

676,683

676,683

291

6,964

7,255

3,054

17,373

20,427

29,877

171,782

201,659

2,044,621

9,649,468

11,694,089

3,244,041

35,597,127

38,841,168

CITY OF EL CENTRO COMBINING BALANCE SHEET

NONMAJORGOVERNMENTAL FUNDS June 30, 2008

00 IV

Assets Cash and investments Receivables: Taxes IntcrcS! Granls Notes Other

Restricted Cash and Investment with Fiscal Agent

Land held for resale

Total Assets

liabilities Accounts payable Salarieslbenefits payable Deferred revenue Deposits Due to other funds

Total Liabilities

Fund Batances

Reserved for: Housing & Economic Development Public Work Projects Street Improvements Public Proteclion Parks & Recreation Debt Service Low ond moderate income housing Land held for resale Unreserved, Undesignsted

Total Fund Balances

Total Liabilities and fund Balanct!t

OasTa.

S 200

851

170,486

$ 171531

S 1,554

II0dli

1t 1,915

59,622

59622

S )71 m

Transponation Article 8

S 145,246

8

41,578

$ 186832

S

186,832

186 832

$ 186832

$

$

S

$

COBO

2,395,584

2 39S 584

2,395,584

2,395,584

? 395 584

Library Assistance

$ 72.889

316

1.757

$ 74962

S 257 592

849

74.113

74 113

$ 74 962

Special Revenue Funds Bus Transponation

Sheller Article 3

S 276.376 $ 41,144

821 17

$ 277197 $ 41 161

S S

---

277,197 41.161

277 197 4t.161

$ 2Z7 197 $ 41 161

$

$

S

$

Home Program

85,033

335

4,338,870 14,928

4439166

154

4,338,870

4,339,024

100,142

100142

4439166

RcntD1 Rehab-HUD

S 411.042

t,733

76,400 1,486

$ 490661

$

76,400

---

76,400

414,261

414261

$ 49066!

Tramc Safety

$ 35,140

247

864

~

S

36.25\

~

~

Wake Ave Extension

S 290,850

1,233

~

292,083

292,083

~


NONMAJOR GOVERNMENTAL FUNDS June 30, 2008

Tramc Congestion Relief

Recreation Projects

Asset Forfeiture

Local Transportation Authority

Special Revenue Funds Home Grants

OTS Grant

Slale COPS SLESF

Annexation Fees

HUD Entitlement

Assets Cash and inves.tments Receivables: Taxes Interest Grants Notes Other

Reslricled Cash and Investment wllh Fiscal Agent


S $ 1.177 $ 573.935

2.585

$ 7.301.140

36,974

583,689

$ 35,279 $ 8,594 $ 190,881

842

$ 101,244

429

$ 512,482

2,465

602,692

Tolal Assets S $ I 171 ~ $ 7921803 $ 35279 $ g 594 $ 191723 ~Ol.613 $ 1.117.639

"" W

Liabilities Accounts payable Salarieslbenefits payable Deferred revenue Deposits Due 10 other funds

$ $ 1.177

---

$ 7,418

---

$ 232.457 $ $ $ 15,041 2,898

$ $ 67.530

602,692

Total Liabilities 1,177 --M.!! 232,457 ----- __ ---.lLlli. 670,222

Fund Balanees Reserved ror:

Housing &: Economic Development Public Work Projccls Street Improvements Public Protection Porks & Recn:ation Debt Service Low and moderate income housing Land held for resale

Unreserved. Undesignsled

Total Fund Balances

569.102

~

7,689,346

7,682.346

35.279

-----.3.5,272

8,594

___8,521

173,784

173 784

101,673

__ 101,673

447,417

447.417

TOlal Liabilities Dnd Fund Balances $ $ I 177 ~ $ 1.92L801 S 35.279 $ 8.591 S 19J.723 $ .LOL673 $ 1.117.639

(Continued)


NONMAJOR GOVERNMENTAL FUNDS June 30, 2008 (Conlinued)

.:xl

.j:>.

Assets Cash and investmenlS Receivabl~s:

Taxes Interest GranlS Notes Other



Total AsselS

Liabilities Accounts payable Salarieslbenefils payable Deferred revenue DepasilS Due to other funds

Total Liabilities

Fund Balances Reserved for:

Housing & Economic Development Public Work Projects Streetlmproyements Public Protection Parks & Recreation Debt Service Low and moderate income housing Land held for resale Unreserved, Undesignated

Total Fund Balances

Total Liabilities and Fund Balances

CDBG Program Income

S 1.102,978

4.655

704,443 7,260

$ 1 RI9 JJ6

S 18,442

704,443

722,885

1,096,451

1,096,451

S 1.819.336

Housin8 Enabled by Local Partnership

S 447,800

5,149

71,017

$ 523 966

S

71,017

71,017

452,949

452.9A2

$ 523.966

$

$

$

$

CALHOME Program

23.264

99

582,939

606302

9

582,939

582,948

23.354

23.354

606302

Development Impact Fee

$ 9,297.338

40,660

S 9337 998

$ 453,468

453,468

8,884,530

_J!.K8~l1Q

~.331..'12&

Special Revenue Funds FHWA

Simplol GranlS

$ 39,135 S 83,320

166 438

$ 39301 $ 83758

$ S

39,301 83,758

39301 83758

$ 39301 $ R3 7~8

$

$

$

$

Soft Drink Franchise

2.367

10

2377

2,377

2377

2377

Integrated Waste Management

S 270,373

1,249

$ 271622

S 3,506

3,506

268,116

268116

$ 27 I 622

UsedOH Grant

S

24,105

$ 24 105

S 3,066

19,678

22,744

1.361

1.:161

L~llS

S

$

L

Per Capita Parks Grant

800

ROO

800

800

800


NONMAJORGOVERNMENTAL FUNDS June 30, 2008

00 VI

Assets Cash and investments Receivables: Taxes Interest Grants Notes Other


Land held for resal.

Total Assets

Liablliti.. Accounts payable SalariesJbenefits payable Deren-cd revenue Deposils Due to other funds

Total Liabilities

Fund Bllinces Reserved for:

Housing & Economic Development Public Work Projects Street improvement" Public Protection Parks & Recreation Debt Service Low and moderate income housing Land held for resale Unreserved. Undesignated

Total Fund Balances

Total Liabilities and Fund Balances

Department of Conservation

S 35,405

214

S 35619

$ 868

-

868

34,751

34.751

$ 35619

Tire Clean·Up Granl

$ 6,139

212,756

$ '18895

$ 17,583

166,808

~391

34,504

34,504

$ m895

Household Hazardous Waste

$ 5,683

24

$ 5707

5,707

5.707

$ 5707

1-8 Imperial Ave Overpass

$ 560,527

2,376

$ 562903

487,200

487.200

75,703

75.7m

$ 562903

Special Revenue Funds Publ ic Education & Used Oil

Amnesty Grant Opportunity Grant

$ $

$ $

$ $

EDA Revolving Fund

$ 8,659

184

$ 8843

8.843

-- 8.8~

$ 8843

Police & Fire Operetional Fund

S 419,696

1.777

$ 421 473

421,473

421A21

$ 421 473

Rural Business Enterprise Grant

S 1,285

~ 1.285

1.285

1.285

$ J 285

(Continued)


NONMAJOR GOVERNMENTAL FUNDS June 3D, 2008 (Continued)

Legacy Ranch CFD

Legacy Ranch Lighting and Landscape District

Special Revenue Funds Fire

IV Commons Miti~ation

2002 Re~oun:e

Bond Act Redevelopment

Housing Ornnge Ave. Regional Lift

Capital Projects Fund.

Park Drainage Development Facility

Post Office Grant

Asstts Cash and investments Receivables: Taxes

Inu:resl Granls

NOles Other

Restricted Cash and Invt:stment with Fiscal Agent


$ 747,153

731

217

S 55,396

430

129

$ 63,327

269

$ 654,812

2.777

---

$

19,699

$ 2,604,096

11,256

1,445,708 1,5 L2

63,589

$ 147,673

821

$ 284,101

1,204

$ 249,503

1.058

$

Total Assets $ 748 !Ol $ ~5 95~ $ 63 ~96 ~ L ~.699 $ 4126161 $~48~ $ 285 305 $ 250.561

f"J 0'1 Liabilities

Accounts payable Salarieslbenelits payable Deferred revenue Deposits Due to other funds

S

714.449

$ $

61.840

$

---

$

19,699

S 2.716

13.089 1.445.708

$ $

--- --- __6_3.363

Total Liabilities 7t4,449 61.840 19.699 1.461.513 63,363

Fund B.I••ces

Reserved for: Housing & Economic Development Public Work Prajccls Street Improvements Public Protection Parks &. Recreation Debt Service Low and moderate income housing Land held for r<saLe Unreserved, Undesignated

33,652

55.955

1.756

657,589

---

2.601.059 63,589

L48,494

285,305

250,561

(6336»)

Total Fund Balances ~2 55955 1756 ~ _~4,6't8 __'48A21 285 305 250561 __16D63)

Total Liabilities lind Fund Balances Ii 748101 S 55955 $ 63596 ~ $ 19.699 S 4.126.161 $ 148.494 $ _ 285.305 $ 250.561 $

----

----


NON MAJOR GOVERNMENTAL FUNDS June 39, 2998

Lotus Perallel

liD Faeiliry Crossing

8th St. Overpass Bridge

BridgeIRoad Improvement

Capital Projects Funds Federal Highway Proposition Administration IB

La Brucheric Green Bell

Colonia·EI Dorado Street

Buena Vista Landscaping

Debt Service Redevelopment Lease

Agency Purchase

TOlal Nonmajor

Governmental Funds

Assets Cash and investments Receivables: Taxes Interest Grants Notes Other



S 277.189

1.175

S 150.624

639

S 17.349

74

$ 6.165.109

26,136

$

1,016.267

$

676,683

S 7.224

3\

$ 10

41 50,111

$ 200,453

400 822

$ 8.861,206

36,474

2.796,409

S S 42.872,637

1,561 188.980

1,999.621 10.217.653

823.560

2,796,409 63,589

TOlal Assets $ 278 364 $ lSI ?63 $ J7 414 $ 6.121245 $ 1016267 S 6766&3 S 7255 $ 50 162 $ 201675 S II 694089 $ $ 58,964,010

OC> -...l

LIabilities Accounts payable Salarieslbenefits payable Deferred revenue Deposits Due to other funds

S

242,650

$

132.960

S 15.900 $

5,973.32\

S 406.346

619.938

S S S 14.183

15,552

$ 16 S S $ 1,260.791 16,579

10,217.653 7.612,420 1.015.399

TOlal Liabilities 242,650 132.960 15,000 5.973.321 1,026,284 29,735 16 20.122.842

FUDd Balances Resel'\'ed for:

Housing & Economic Development Public Work Projects Street Improvements Public Protection Parks & Recreation Debt Service Low and moderate income housing Land held for resale Unreserved, Undesignaled

35,714 18.303 2,414 217,924

(0017)

676,683 7.255 20,427

201,659 2.765,955

8928134

2,578.696 9.703.674 9,791.116 1,830.542

651.783 2,765,955 2,601,059

63,589 8,854,754

Total Fund Balnnces ~14 18.303 ___2,414 217924 (10,017) 676,683 7,255 20,427 201659 \I 694089 _ 38.841.168

TOlal Liabilities and Fund Balances S 278.364 $ 151.263 $ 17.414 S 6.19i.245 S 1016267 S 676683 $ 7255 S 50162 $ 201675 S 11694 089 ~._ .. ~8.964.010

CITY OF EL CENTRO

COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS


Revenues; Intergovcnuncntal Taxes

Charges for services

Interest

Other Total Revenues

Gas Tax

$ 716,011

4,518

720,529

Transportation Article 8

$ 576,606

3,213

579,819

CDBa

$

2,850

2,850

Library Assistance

$ 32,642

2,725 50

35,417

Special Revenue Funds

Bus Transportation Shelter Article 3

$ 86,410 $ 37,177

7,925 404

94,335 37,581

Home Program

$

3,913

117,188 121,101

Rental Rehab-HUD

$

16,259

16,332 32,591

Traffic Safely

$

3,380

16,479 19,859

Wake Ave Extension

S

11,720

------.!.L.720

OCI 00

Ex.penditures: Current;

General Govenunent Public Safely

Public Works

Parks and Recreation Communily Development

Capital Outlay

Debt Service: Prinicipal Interest

1,554 4,137

116,501 26,427

--

3,375

5,875 41,063 218,493

14,743

54,263

Total E.penditwes 1,554 4,137 116,501 26,427 9,250 41,063 218,493 ~

E.cess (Deficiency) of Revenues over (Under) Expenditures 718,975 575,682 (113,651) 8,990 851J1l5 _ (3,482t _ (9UW 32~ ~,147) 11,720

Other Financing Somees (Uses): Transfen; In Transfen; Out

Total Other Financing Sowces (Uses)

(760,000)

(760,000)

(750,000)

(750,000)

Net Change in Fund Balances (41,025) (174,318) (113,651) 8,990 85,085 (3,482) (97,392) 32,591 (49,147) 11,720

Fund Balances- July I, 2007 100,647 361,150 113,651 65,123 192,112 44,643 197,534 381,670 85,398 280,363

Fund Balances - June 30, 2008 59,622 186,832 $ $ 74,113 ~ 41,161 ~ 414,26\ ~ S 292,083

CITY OF EL CENTRO COMBINING STATEMENT OF REVENUES. EXPENDITURES, AND CHANGES IN FUND BALANCES

NON MAJOR GOVERNMENTAL FUNDS Fiscal Year Ended June 30, 200S


Revenues: Intergovernmental Taxes Charges for services Interest Other

Total Revenues

Traffic Consestion Relief

1,384

1,384

Recreation Projects

$

912 34,987 35,899

Asset Fortfeirure

$ 665,707

34,998

700,705

Local Transportation Authority

$ 2,455,125

321,658

2,776,783

$

Home Grants

8,605 35,279 43,884

OTS Grant

1,852

1,852

State COPS SLESF

$ 100,000

6,108

106,108

Annexation Fees

$

4,255

4,255

HUD Entitlement Program

$ 802,794

20,039

822,833

00 \0

Expenditures: ClUTent: General Government Public Safety Public Works Parks ond Reereotion Community Development

Capita' Outlay Debt Service: Prinicipal Interest

113,979

493,049

357,580

1,360,055

400,525

351,935

6,223 29,130

42,800

20,030

344,824 625,080

Total Expenditures 113,979 S50,629 1,760,580 351,935 6,223 71,930 20,030 969,904

Excess (Deficiency) of Revenues over (Under) Expenditures 1,384 (78,080) (149,924) 1,016,203 (308,051) (4,371) 34,178 (15,775) (147,071)

Other Financing Sources (Uses): Transfers In Transfers Out


(163,837)

(163,837)

30,792

30,792

Net Change in Fund Balances (162,453) (47,288) (149,924) 1,016,203 (308,051) (4,371) 34,178 (15,775) (147,071)

Fund Balances- July I, 2007 162,453 47,288 719,026 6,673,143 343,330 12,965 139,606 117,448 594,488

Fund Balnnces - June 30, 2008 $ $ ~ $ 7,689,346 35,279 $ 8,594 $ 173,784 101,673 $ 447,417

(Continued)



(Continued)


\0 o

Revenues: Intergovernmental Taxes Charges for services Interest Other

Total Revenues

Expenditure., Current. General Goverrunenl Public SafelY Public Worlos Parks and Recreation CommunilY Development Capital Outlay Debt Service: Prinicipal lnterest

CDBG Program Inco~

$

36,987 315,29l

352,27L

18,821

Housing Enabled by Lo~Partncrship

$

47,983

121,523 169,506

442,067

CALHOME Prograrn__

$ 2,256

1,493

3,7~

2,629

Development Impact Fee

$

1,377,034 382,230

__ 1,759,264

1,204,977

~implot

$

1,578

~

FHWA Grants

$ 44,561

2,767

47,328

19,987

Soft Drink Franchise

$

97 945

1,042

1,018

Intergrated Waste Management

$ 248,133

9,156 4,461

261,750

219,946

1,935

Used Oil Grant

$ 20,113

~ 20,449

53,617

Per Capil8 Pms Grant

$ 800

800

Total Expenditures

Excess (Deficiency) of Revenues over (Under) Expenditures

Other Financing Sources (Uses): Transfers In Transfers Out


18,821

333,457

442,067

(272,561)

2,629

1,120

1,204,977

554,287

(51,857)

(51,857)

1,578

19,987

27,341

1,018

24

22\,881

39,869

53,617

(33,168) 800


Fund Balanccs- July 1,2007

Fund Balances - June 30, 200g $

333,457

762,994

1,096,451

(272,561)

725,510

452,949 $

1,120

22,234

23,354 $

502,430

8,382,100

8,884,530

1,578

37,723

~

27,341

56,417

~

24

2,353

2,377 $

39,869

228,247

268,116

(33,168)

34,529

~ $

800

800



Revenues: Intergovernmental Taxes Charges for servie..

Interesl Other

Tota1 Revenues

Department of Conservation

11,163

2,780

36,538

50,481

Tire Clean-Up Grant

$ 212,757

212,757

Household Hazard Waste

$ 6,820

57

6,877

Special Revenue Funds 1-8 Imperial Public Education &

Ave Overpass Amnesty Grant

$ $ 4.196

22,586

22,58£ 4,196

Used Oil

Opportunity Grant

$ 1,069

1.069

EDA Revolving

$ 13,002

1,465

14,467

Police & Fire

Operational

$

25,518

25,518

Rural Business

Enterprise Granl

$ 38,816

38,816

\0-

Expenditures:

Current

General Government

Public Safety

Public Works

Parks and Recrearion Community Development Capital Outlay Debt Service: Prinicipal Interest

50,195

212,757 3,778

50,516 12,168 25,363

Total Expenditures 50,195 212,757 3,778 50,516 37,531

Excess (Deficiency) of Revenues over (Under) Expenditures 286 3,099 22.586 4,196 1,069 (36.049) 25,518 1,285

Other Financing Sources (Use.):

Transfers In

Transfers Out

Total Other Financing

Sources (Uses)

(293,739)

(293,739)

Nct Change in Fund Balances 286 3,099 22,586 4.196 1,069 (36,049) (268,221) 1,285

Fund Balance.- July I, 2007 34,465 34,504 2.608 53,117 (4,196) (1.069) 44,892 689,694

Fund Balance. - June 30, 2008 $ 34,751 $ 34,504 5,707 $ 75,703 $ $ ~ $ 421,473 $ 1,285

(Conrinued)

Revenues: Intergovernmental Taxes Charges for service. Interest Other

Total Revenue.

Expenditure<: Current: General Government Public Safety Public Works

Parks and Recreation Community Development

Capital Outlay Debt Service:

~ Prinicipal Interest

TOlal Expenditure.

Exces. (Deficiency) of Revenue. over (Under) Expenditures

Other Financing Sources (Use.): Tran.fers In Transfers Out



Fund Balances- July I, 2007

Fund Balances· June 30. 2008



(Continued)

Special Revenue Funds Capital Project Funds Legacy Ranch

CFD

$

29,685

1,677 24,333 55,695

55,447

316

55,763

$

Legacy Ranch Lighting and Landscape Di.triCI

1,756 13,160 14,916

IV Commons

15,810 530,665 546,475

Fire Mitigation

19,699

19,699

2002 Resource Bond Act

S 1,104,339

128,241 501,079

. 1,733,659

Redevelopment Housing

S

5,926 57,573 63,499

Orange Ave. Regional Lift

$

11,447

11,447

Park Development

S

9,509 62,165 71,674

Drainage Facility

24,333 4,118

13,160 19,699

748,268 1,554,614

24,333 4,118 13,160 19,699 2,302,882

31,362 51,645 1,756 546,475 (569,223) 63,499 11,447 71,674

293,739 ( 182,625)

111,114

31,362

2.290

33,652

51,645

4,310

55,955

1,756

$ 1,756

657,589

$ 657,589

(569,223)

3,233,871

$ 2,664,648

63,499

84,995

148,494

11,447

273,858

$ 285,305

71,674

178,887

~

Post Office Grant

3,247

3,247

193,792

193,792

(190,545)

(190,545)

127,182

$ (63,363)

Lotus liD Facility Parallel Crossing

11,170 6,070

J1,170 ~

11,170 6,070

11,170 6,070

24,544 12,233

$ 35,714 ~

SCHEDULES OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -BUDGET AND ACTUAL

FOR THE FISCAL YEAR ENDED JUNE 30, 2008

93

CITY OF EL CENTRO GAS TAX SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL


Variance Final Actual Positive

Budget Amount (Negative)

Revenues: Interest $ 500 $ 4,518 $ 4,018 Intergovernmental 741,000 716,011 (24,989)

Total Revenues 741,500 720,529 (20,971)

Expenditures: Public Works 2,000 1,554 446

Total Expenditures 2,000 1,554 446

Excess (Deficiency) of Revenues Over (Under) Expenditures 739,500 718,975 (20,525)

Other Financing Sources (Uses) Transfers Out (770,000) (760,000) 10,000

Total Other Financing Sources (Uses) (770,000) (760,000) 10,000

Net Change in Fund Balance (30,500) (41,025) (10,525)

Fund Balance - July 1 100,647 100,647

Fund Balance - June 30 $ 70,147 $ 59,622 $ (10,525)

94

CITY OF EL CENTRO TRANSPORTAnON ART 8 SPECIAL REVENUE FUND



Variance

Revenues: Interest Intergovernmental

Total Revenues

Final Budget

$ 100 400,000

400,100

Actual Amount

$ 3,213 576,606

579,819

Positive (Negative)

$ 3,113 176,606

179,719

Expenditures: Public Works

Total Expenditures

4,500

4,500

4,137

4,137

363

363

Excess (Deficiency) of Revenues Over (Under) Expenditures 395,600 575,682 180,082

Other Financing Sources (Uses) Transfers Out (750,000) (750,000)

Total Other Financing Sources (Uses) (750,000) (750,000)

Net Change in Fund Balance (354,400) (174,318) 180,082


Fund Balance - June 30 $ 6,750 $ 186,832 $ 180,082

95

CITY OF EL CENTRO CDBG SPECIAL REVENUE FUND



Variance

Revenues: Interest

Total Revenue

$

Final Budget

-

Actual Amount

$ 2,850

2,850

$

Positive (Negative)

2,850

2,850

Expenditures: Community development

Total Expenditures

116,501

116,501

(116,501)

(116,501)

Net Change in Fund Balance (113,651) (113,651)


Fund Balance - June 30 $ 113,651 ~$====- $ (113,651)

96

CITY OF EL CENTRO LIBRARY ASSISTANCE SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Fiscal Year Ended June 30, 2008



Revenues: Interest Donations Intergovernmental

Total Revenue

Expenditures: Parks and Recreation

Total Expenditures

Net Change in Fund Balance

Fund Balance - July 1

Fund Balance - June 30

$ 200 500

24,000

24,700

$ 2,725 50

32,642

35,417

$ 2,525 (450)

8,642

10,717

20,700

20,700

26,427

26,427

(5,727)

(5,727)

4,000 8,990 4,990

65,123 65,123

$ 69,123 $ 74,113 =$==4===,9=9=0

97

CITY OF EL CENTRO BUS SHELTER SPECIAL REVENUE FUND





Revenues: Intergovernmental $ 41,640 $ 86,410 $ 44,770 Interest 1,000 7,925 6,925

Total Revenue 42,640 94,335 51,695

Expenditures: Public Works 6,640 3,375 3,265 Capital Outlay 5,875 (5,875)

Total Expenditures 6,640 9,250 (2,610)

Net Change in Fund Balance 36,000 85,085 49,085



98

CITY OF EL CENTRO TRANSPORTATION ART. 3 SPECIAL REVENUE FUND





Revenues: Interest Intergovernmental

Total Revenue

$ 500 8,000

8,500

$ 404 37,177

37,581

$ (96) 29,177

29,081

Expenditures: Public Works Capital Outlay

Total Expenditures

45,000

45,000

41,063

41,063

45,000 (41,063)

3,937



Fund Balance - June 30 $ 8,143 $ 41,161 ~$===33~,0=1=8

99

CITY OF EL CENTRO HOME PROGRAM SPECIAL REVENUE FUND





Revenues: Other Income $ 96,000 $ 117,188 $ 21,188 Interest 2,000 3,913 1,913

Total Revenue 98,000 121,101 23,101

Expenditures: Community Development 98,000 218,493 (120,493)





100

CITY OF EL CENTRO RENTAL REHAB - HUD SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND




Revenues: Interest Other Income

Total Revenue

$ 2,000 20,000

22,000

$ 16,259 16,332

32,591

$ 14,259 (3,668)

10,591

Expenditures: Community Development

Total Expenditures

200,000

200,000

200,000

200,000

Net Change in Fund Balance (178,000) 32,591 210,591


Fund Balance - June 30 $ 203,670 $ 414,261 210,591$ =======

101

CITY OF EL CENTRO TRAFFIC SAFETY SPECIAL REVENUE FUND

SCHEDULE OF REVENUES, EXPENDITURES AND




Revenues: Interest $ - $ 3,380 $ 3,380 Other Income 47,000 16,479 (30,521)

Total Revenue 47,000 19,859 (27,141)

Expenditures: Public Works 16,505 14,743 1,762 Capital Outlay 30,000 54,263 (24,263)


Net Change in Fund Balance 495 (49,147) (49,642)


Fund Balance - June 30 $ 85,893 $ 36,251 $ (49,642) ==~~==

102

CITY OF EL CENTRO

WAKE AVE EXTENSION SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Fiscal Year Ended June 30,2008



Revenues: Interest $ 11,720 $ 11,720 $

Total Revenue 11,720 11,720

Net Change in Fund Balance 11,720 11,720


Fund Balance - June 30 $ 292,083 $ 292,083 $

103

CITY OF EL CENTRO

TRAFFIC CONGESTION RELIEF SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND




Revenues: Interest $ 1,384 -,-$ 1--<...,3_8_4

Total Revenues 1,384 1,384

Other Financing Sources (Uses) Transfers Out (284,410) (163,837) 120,573

Total Other Financing Sources (Uses) (284,410) (163,837) 120,573



Fund Balance - June 30 $ (121,957) ~$==== ~$==1=2"",,1,=95=7

104

CITY OF EL CENTRO

RECREATION PROJECTS SPECIAL REVENUE FUND





Revenues: Interest $ $ 912 $ 912

Other 70,000 34,987 (35,013)

Total Revenue 70,000 35,899 (34,101)

Expenditures: Parks and Recreation 89,300 113,979 (24,679)


Excess (Deficiency) of Revenues Over (Under) Expenditures (19,300) (78,080) (58,780)

Other Financing Sources (Uses) Transfers In 30,792 30,792

Total Other Financing Sources (Uses) 30,792 30,792



Fund Balance - June 30 $ 27,988 $ - $ (27,988)

lOS

CITY OF EL CENTRO ASSET FORFEITURE SPECIAL REVENUE FUND





Revenues: Interest $ - $ 34,998 $ 34,998 Intergovernmental 100,000 665,707 565,707

Total Revenue 100,000 700,705 600,705

Expenditures: Public Safety 493,049 (493,049) Capital Outlay 357,580 (357,580)

Total Expenditures 850,629 (850,629)

Excess (Deficiency) of Revenues Over (Under) Expenditures 100,000 (149,924) (249,924)

Other Financing Sources (Uses):

Transfers Out (300,000) 300,000

Total Other Financing Sources (Uses) (300,000) 300,000




106

CITY OF EL CENTRO

LOCAL TRANSPORTATION AUTHORITY SPECIAL REVENUE FUND





Revenues: Interest $ 35,000 $ 321,658 $ 286,658 Intergovernmental 2,461,000 2,455,125 (5,875)

Total Revenue 2,496,000 2,776,783 280,783

Expenditures: Public Works 1,360,055 (1,360,055)

Capital Outlay 7,681,000 400,525 7,280,475


Net Change in Fund Balance (5,185,000) 1,016,203 6,201,203

Fund Balance - July 1 6,673,143 6,673,143

Fund Balance - June 30 $ 1,488,143 $ 7,689,346 $ 6,201,203

107

CITY OF EL CENTRO HOME GRANTS SPECIAL REVENUE FUND





Revenues: Other Interest

Total Revenue

$ - $ 35,279 8,605

43,884

$ 35,279 8,605

43,884


Total Expenditures

351,935

351,935

(351,935)

(351,935)




108

CITY OF EL CENTRO OTS GRANT SPECIAL REVENUE FUND



Revenues: Intergovernmental

Total Revenue

Final Budget

$ 6,852

6,852

Actual Amount

$ 1,852

1,852

Variance Positive

(Negative)

$ (5,000)

(5,000)

Expenditures: Public Safety

Total Expenditures

6,852

6,852

6,223

6,223

629

629




109

CITY OF EL CENTRO STATE COPS SLESF SPECIAL REVENUE FUND




Budget Amount (l\Tegative)

Revenues: Intergovernmental $ 100,000 $ 100,000 $ Interest 800 6,108 5,308

Total Revenue 100,800 106,108 5,308 .

Expenditures: Public Safety 77,987 29,130 48,857 Capital Outlay 50,000 42,800 7,200

Total Expenditures 127,987 71,930 56,057

Net Change in Fund Balance (27,187) 34,178 61,365



110

CITY OF EL CENTRO ANNEXAnON FEES SPECIAL REVENUE FUND





Revenues: Interest $ $ 4,255 $ 4,255


Expenditures: Public works 20,030 (20,030)





III

CITY OF EL CENTRO HUD ENTITLEMENT PROGRAM SPECIAL REVENUE FUND





Revenues: Intergovernmental $ 688,932 $ 802,794 $ 113,862 Interest 20,039 20,039

Total Revenue 688,932 822,833 133,901

Expenditures: Community Development 564,174 344,824 219,350 Capital Outlay 456,758 625,080 (168,322)

Total Expenditures 1,020,932 969,904 51,028

Excess (Deficiency) of Revenues Over (Under) Expenditures (332,000) (147,071) 184,929

Other Financing Sources (Uses)

Transfers In 307,000 (307,000)

Total Other

Financing Sources (Uses) 307,000 (307,000)




112

CITY OF EL CENTRO CDBG PROGRAM INCOME SPECIAL REVENUE FUND





Total Revenue


$ 295,000 $ 12,000

307,000

315,291 $ 36,987

352,278

20,291 24,987

45,278


Total Expenditures

18,821

18,821

(18,821)

(18,821)



Transfers Out (307,000) 307,000

Total Other Financing Sources (Uses) (307,000) 307,000



Fund Balance - June 30 333,457762,994 $ 1,096,451 $ ~==~=

$

113

CITY OF EL CENTRO

HOUSING ENABLED BY LOCAL PARTNERSHIP SPECIAL REVENUE FUND


CHANGES ll'J FUND BALANCE-BUDGET AND ACTUAL


Variance

Final Actual Positive Budget Amount (Negative)

Revenues:

Interest $ $ 47,983 $ 47,983

Other 121,523 121,523


Expenditures: Community Development 442,067 (442,067)





114

CITY OF EL CENTRO CALHOME PROGRAM SPECIAL REVENUE FUND


For the Fiscal Year Ended June 30,2008



Revenues: Intergovernmental Interst

Total Revenue

$ 10,500

10,500

$ 2,256 1,493

3,749

$ (8,244) 1,493

__-,--(6,7 51)


Total Expenditures

2,629

2,629

(2,629)

(2,629)

Net Change in Fund Balance 10,500 1,120 (9,380)


Fund Balance - June 30 $ 32,734 $ 23,354 ,.;.-.$~~(...:.9,3=8==,0)

115

CITY OF EL CENTRO

DEVELOPMENT IMPACT FEE SPECIAL REVENUE FUND


CHANGES IN FUND BALANCE-BUDGET AND ACTUAL


Variance


Revenues:

Charges for services $ 461,000 $ 1,377,034 $ 916,034

Interest 188,700 382,230 193,530

Total Revenue 649,700 1,759,264 1,109,564

Expenditures:

Public Works 100,000 100,000

Capital Outlay 1,075,407 1,204,977 (129,570)

Total Expenditures 1,175,407 1,204,977 (29,570)

Excess (Deficiency) of

Revenues Over (Under) Expenditures (525,707) 554,287 1,079,994


Transfers Out (57,000) (51,857) 5,143

Total Other

Financing Sources (Uses) (57,000) (51,857) 5,143

Net Change in Fund Balance (582,707) 502,430 1,085,137


Fund Balance - June 30 $ 7,799,393 $ 8,884,530 $ 1,085,137

116

CITY OF EL CENTRO SIMPLOT SPECIAL REVENUE FUND





Revenues: Interest $ 500 $ 1,578 $ 1,078

Total Revenue 500 1,578 1,078

Net Change in Fund Balance 500 1,578 1,078


Fund Balance - June 30 $ 38,223 $ 39,301 $ 1,078 ========

117

CITY OF EL CENTRO FHWA GRANTS SPECIAL REVENUE FUND





Revenues: Intergovernmental $ - $ 44,561 $ 44,561 Interest 2,767 2,767


Expenditures: Capital Outlay 19,987 (19,987)





118

CITY OF EL CENTRO SOFT DRINK FRANCHISE SPECIAL REVENUE FUND






Total Revenue

$ 800 90

890

$ 945 97

1,042

$ 145 7

152


Total Expenditures

800

800

1,018

1,018

(218)

(218)

Net Change in Fund Balance 90 24 (66)


Fund Balance - June 30 $ 2,443 $ 2,377 ,;,,$==~(6~6)

119

CITY OF EL CENTRO INTEGRATED WASTE MANAGEMENT SPECIAL REVENUE FUND





Revenues: Intergovernmental $ 248,000 $ 248,133 $ 133 Other 4,461 4,461 Interest 9,156 9,156

Total Revenue 248,000 261,750 13,750

Expenditures: Public Works 185,500 219,946 (34,446)

Capital Outlay 3,600 1,935 1,665


Net Change in Fund Balance 58,900 39,869 (19,031)



120

CITY OF EL CENTRO

USED OIL GRANT SPECIAL REVENUE FUND





Revenues: Intergovernmental $ 165,565 $ 20,113 $ (145,452)

Other 336 336

Total Revenue 165,565 20,449 (145,116)

Expenditures: Public Works 165,565 53,617 111,948

Total Expenditures 165,565 53,617 111,948



Fund Balance - June 30 $ 34,529 $ 1,361 ;",$==(;b.336 , ~16d8)

121

CITY OF EL CENTRO PER CAPITA PARKS GRANT SPECIAL REVENUE FUND





Revenues: Intergovernmental $ - $ 800 $ 800

Total Revenue 800 800

Net Change in Fund Balance 800 800


Fund Balance - June 30 $ 800 $ 800 ~---..;.

122

CITY OF EL CENlRO DEPARTMENT OF CONSERVATION SPECIAL REVENUE FUND





Revenues: Intergovernmental Other Interest

Total Revenue

$ 58,000

58,000

$ 11,163 36,538

2,780

50,481

$ (46,837) 36,538

2,780

(7,519)


Total Expenditures

42,000

42,000

50,195

50,195

(8,195)

(8,195)

Net Change in Fund Balance 16,000 286 (15,714)


Fund Balance - June 30 $ 50,465 $ 34,751 ~$==(~1~5,~71==4)

123

CITY OF EL CENTRO TIRE CLEAN-UP GRANT SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND





Total Revenue

$ 441,046

441,046

$ 212,757

212,757

$ (228,289)

(228,289)


Total Expenditures

441,046

441,046

212,757

212,757

228,289

228,289



Fund Balance - June 30 $ 34,504 $ 34,504 =$====

124

CITY OF EL CENTRO HOUSEHOLD HAZARDOUS WASTE SPECIAL REVENUE FUND





Revenues: Intergovernmental Interest

Total Revenue

$ - $ 6,820 57

6,877

$ 6,820 57

6,877


Total Expenditures

3,778

3,778

(3,778)

(3,778)



Fund Balance - June 30 $ 2,608 $ 5,707 =$===3==,0=9=9

125

CITY OF EL CENTRO 1-8 IMPERIAL AVE OVERPASS SPECIAL REVENUE FUND





Revenues: Interest

Total Revenue

$ 15,000

15,000

$ 22,586 22,586

.:....$__----'7...z.:,5:.....:8...:...6 7,586



Fund Balance - June 30 $

15,000

53,1l7

68,1l7 $

22,586

53,117

75,703

7,586

~$==~7,,;,,,;58;,,;,,6

126

CITY OF EL CENTRO PUBLIC EDUCATION & AMNESTY GRANT SPECIAL REVENUE FUND




Total Revenue

$

Final Budget

- $

Actual Amount

4,196

4,196

Variance Positive

(Negative)

$ 4,196

4,196


Fund Balance - July 1 (4,196) (4,196)

Fund Balance - June 30 $ (4,196) $ - $ 4,196

127

CITY OF EL CENTRO USED OIL OPPORTUNITY GRANT 7 SPECIAL REVENUE FUND




Total Revenue

$

Final Budget

- $

Actual Amount

1,069

1,069

Variance Positive

(Negative)

$ 1,069

1,069


Fund Balance - July I (1,069) (l,069)

Fund Balance - June 30 $ (1,069) $ - $ 1,069

128

CITY OF EL CENTRO EDA REVOLVING SPECIAL REVENUE FUND





Revenues: Intergovernmental $ $ 13,002 $ 13,002 Interest 2,000 1,465 (535)

Total Revenue 2,000 14,467 12,467

Expenditures: Community Development 2,000 50,516 (48,516)





129

CITY OF EL CENTRO POLICE & FIRE OPERATIONAL SPECIAL REVENUE FUND




Total Revenue


Transfers Out

Total Other

Financing Sources (Uses)






$ 143,017 $ - $ (143,017) 20,000 25,518 5,518

163,017 25,518

(182,626)

(182,626)

(19,609)

689,694

(293,739)

(293,739)

(268,221)

689,694

(137,499)

(111,113)

(111,113)

(248,612)

$ 670,085 $ 421,473 $ (248,612)

130

CITY OF EL CENTRO RURAL BUSINESS ENTERPRISE GRANT SPECIAL REVENUE FUND



Variance


Total Revenue

$

Final Budget

Actual Amount

- $ 38,816

38,816

Positive (Negative)

$ 38,816

38,816

Expenditures: Community Development Capital Outlay

Total Expenditures

12,168 25,363

37,531

(12,168) (25,363)

(37,531)



Fund Balance - June 30 $ 1,285 ~$===1~,2=8=5

131

CITY OF EL CENTRO

LEGACY RANCH CFD SPECIAL REVENUE FUND SCHEDULE OF REVENUES, EXPENDITURES AND


Variance


Revenues:

Other

Tax Interest

Total Revenue

$ - $ 24,333

29,685 1,677

55,695

$ 24,333 29,685

1,677

55,695


Total Expenditures

24,333

24,333

(24,333)

(24,333)


Fund Balance - July I 2,290 2,290

Fund Balance - June 30 $ 2,290 $ 33 ,652 ~$==3=1..;,,3;..;6=2

132

CITY OF EL CENTRO LEGACY RANCH LIGHTING AND LANDSCAPING DISTRICT SPECIAL REVENUE FUND



Variance

Revenues: Tax Interest

Total Revenue

$

Final Budget

Actual Amount

- $ 55,447 316

55,763

Positive (Negative)

$ 55,447 316

55,763


Total Expenditures

4,118

4,118

(4,118)

(4,118)




133

CITY OF EL CENTRO IV COMMONS SPECIAL REVENUE FUND





Revenues: Other $ - $ 13,160 $ 13,160

Interest 1,756 1,756


Expenditures: Public works 13,160 (13,160)




Fund Balance - June 30 $ 1,756 ~$===I:f,'7~5=6

134

CITY OF EL CENTRO FIRE MITIGATION SPECIAL REVENUE FUND





Revenues: Other $ 401,319 $ 530,665 $ 129,346 Interest 15,810 15,810

Total Revenue 401,319 546,475 145,156



Transfers Out (182,625) (182,625)

Transfers In 293,739 293,739

Total Other

Financing Sources (Uses) 111,114 111,114




135

CITY OF EL CENTRO

2002 RESOURCE BOND ACT SPECIAL REVENUE FUND


CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For the Fiscal Year Ended June 30,2008



Revenues: Intergovernmental $ - $ 19,699 $ 19,699


Expenditures: Parks and Recreation 19,699 (19,699)




Fund Balance - June 30 $ - $ - $ ~==== ~===== ~====

136

CITY OF EL CENTRO REDEVELOPMENT AGENCY HOUSING SPECIAL REVENUE FUND



Variance Final Positive

Budget Actual (Negative)

Revenues:

Property Tax Increment $ 911,400 $ 1,104,339 $ 192,939 Interest 62,400 128,241 65,841 Other Revenues 50,000 501,079 451,079

Total Revenues 1,023,800 1,733,659 709,859

Expenditures:

Community Development 2,050,963 748,268 1,302,695 Capital Outlay 1,507,500 1,554,614 (47,114)


Net Change in Fund Balance (2,534,663) (569,223) 1,965,440


Fund Balance - June 30 $ 699,208 $ 2,664,648 $ 1,965,440

137

CITY OF EL CENTRO ORANGE AVE REGIONAL LIFT CAPITAL PROJECTS FUND





Revenues: Interest $ 800 $ 5,926 $ 5,126

Other 57,573 57,573

Total Revenues 800 63,499 62,699

Net Change in Fund Balance 800 63,499 62,699



138

CITY OF EL CENTRO PARK DEVELOPMENT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND


Variance

Revenues: Interest Other

Total Revenues

Final Budget

$ 7,000 2,000 9,000

Actual Amount

$ 11,447

11,447

Positive (Negative)

$ 4,447 (2,000) 2,447




139

CITY OF EL CENTRO DRAINAGE FACILITY CAPITAL PROJECTS FUND



Variance

Revenues: Interest

Other Total Revenues

Final Budget

$ 2,500 30,000 32,500

Actual Amount

$ 9,509 62,165 71,674

Positive (Negative)

$ 7,009 32,165 39,174




140

CITY OF EL CENTRO

POST OFFICE GRANT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND


Revenues: Intergovernmental $ Interest

Total Revenues

Final Budget

70,856

70,856

$

Actual Amount

3,247

3247

$

Variance

Positive (Negative)

(70,856) 3,247

(67,609)

Expenditures: Capital Outlay

Total Expenditures 199,060 199,060

193,792 193,792

5,268 5,268



Fund Balance (Deficit) - June 30 $ (1,022) $ (63,363) $ (62,341)

141

CITY OF EL CENTRO LOTUS PARALLEL CAPITAL PROJECTS FUND



Variance

Revenues: Interest

Total Revenues

Final Budget

$ 1,000

1,000

Actual Amount

$ 11,170

11,170

Positive (Negative)

$ 10,170

10,170




142

CITY OF EL CENTRO liD FACILITY CROSSING CAPITAL PROJECTS FUND



Revenues:

Interest Total Revenues

$

Final Budget

-

Actual Amount

$ 6,070 6,070

Variance Positive

(Negative)

$ 6,070 6,070




143

CITY OF EL CENTRO 8TH STREET OVERPASS BRIDGE CAPITAL PROJECTS FUND





Revenues: Interest $ 300 $ 699 $ 399

Total Revenues 300 699 399

Net Change in Fund Balance 300 699 399


Fund Balance - June 30 $ 2,015 $ 2,414 $ 399

144

CITY OF EL CENTRO

BRIDGE/ROAD IMPROVEMENT CAPITAL PROJECTS FUND



Revenues:

Other Interest

Total Revenues

$

Final Budget

Actual Amount

$ 385 195,065

195,450

Variance Positive

(Negative)

385 195,065

195,450




145

CITY OF EL CENTRO FEDERAL HIGHWAY ADMINISTRAnON CAPITAL PROJECTS FUND






Total Revenues

$ 100,000

100,000

$ 518,113

518,113

_$__4_18--,-,1_1_3

418,113

Expenditures: Capital Outlay

Total Expenditures

100,000 100,000

575,151 575,151

(475,151) (475,151)



Fund Balance (Deficit) - June 30 $ 47,021 $ (10,017) ==$=====(*=5==7,==03==8)

146

CITY OF EL CENTRO PROPOSITION IB CAPITAL PROJECTS FUND


For the Fiscal Year Ended June 30, ?008


Total Revenues

$

Final Budget

Actual Amount

$ 676,683

676,683

Variance Positive

(Negative)

$ 676,683

676,683



Fund Balance - June 30 $ 676,683 ==$==6=7==6,=68=3

147

CITY OF EL CENTRO LA BRUCHERIE GREEN BELT CAPITAL PROJECTS FUND



Revenues: Interest

Total Revenues $

Final Budget

-

Actual Amount

$ 291 291

Variance Positive

(Negative)

$ 291 291

Net Change in Fund Balance 291 291


Fund Balance - June 30 $ 6,964 $ 7,255 $ 291

148

CITY OF EL CENTRO

COLONIA -EL DORADO STREET CAPITAL PROJECTS FUND



Revenues: Intergovernmental Interest

Total Revenues

Final Budget

$ 746,974

746,974

Actual Amount

$ 349,641 3,505

353,146

Variance Positive

(Negative)

$ (397,333) 3,505

(393,828)

Expenditures:

Public Works Capital Outlay

Total Expenditures

121,974 625,000 746,974

122,114 227,978

350,092

(140) 397,022

396,882




149

CITY OF EL CENTRO

BUENA VISTA LANDSCAPING AND LIGHTING DISTRICT CAPITAL PROJECTS FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTITAL For the Fiscal Year Ended June 30, 2008

Revenues: Taxes Interest

Total Revenues


Total Expenditures




Final Budget

$ 30,000 500

30,500

8,500

8,500

22,000

171,782

$ 193,782

$

Actual Amount

27,803 7,349

35,152

Variance Positive

(Negative)

$ (2,197) 6,849

4,652

5,275

5,275

3,225

3,225

$

29,877

171,782

201,659

7,877

$ 7,877

150

CITY OF EL CENTRO REDEVELOPMENT AGENCY DEBT SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCE-BUDGET AND ACTUAL For The Fiscal Year Ended June 30, 2008

Revenues:

Taxes Interest

Final Budget

$ 3,644,600 80,000

Actual

$ 4,417,356 448,304

$

Variance Positive

(Negative)

772,756 368,304

Total Revenues 3,724,600 4,865,660 1,141,060

Expenditures:

Debt Service: Interest and Fiscal Charges 1,649,666 1,871,039 (221,373)

Total Expenditures 1,649,666 1,871,039 (221,373)

Excess (Deficiency) ofRevenues Over (Under) Expenditures 2,074,934 2,994,621 919,687

Other Financing Sources (Uses):

Transfers Out (950,000) (950,000)

Total Other Financing Sources (Uses) (950,000) (950,000)

Net Change in Fund Balance 1,124,934 2,044,621 919,687

Fund Balance - July 1, 9,649,468 9,649,468

Fund Balance - June 30, $ 10,774,402 $ 11,694,089 $ 919,687

151

CITY OF EL CENTRO LEASE PURCHASE DEBT SERVICE FUND





Revenues:

Interest Total Revenues

Expenditures: Debt service:

Principal Interest

Total Expenditures

Excess (Deficiency) of Revenues Over (Under) Expenditures

Other Financing Sources

Transfers In

Total Other Financing Sources




$ "'-----

153,167 10,788

163,955

063,955)

163,955

163,955

$ =====

$ -=---- $"'-----

152,846 5,944

158,790

321 4,844 5,165

058,790)

158,790

158,790

5,165

(5,165)

(5,165)

$ -~====

$ ~====

152

COMBINING STATEMENTS NONMAJOR PROPRIETARY FUNDS

PROPRIETARY FUNDS

Proprietary funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - for these funds, it is the intent of the City Council that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges

Transit - This fund is used to account for revenues and expenses associated with a demand response public transportation service.

Solid Waste - This fund is used to account for revenue and expenditures associated with the collection and disposal of solid waste.

153

ASSETS

Current Assets: Cash and Investments Receivables Accounts Receivable (Net of Allowance for Uncollectibles)

Interest Receivable

Total Current Assets

Total Assets

LIABILITIES AND FUND EQUITY

Liabilities: Current Liabilities: Accounts Payable

Deposits Payable

Total Current Liabilities

Total Liabilities

Net Assets (Deficit) Unrestricted

Net Assets (Deficit)

CITY OF ELCENTRO NONMAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF NET ASSETS June 30, 2008

Transit

$ 8,796 $

8,796

8,796

$

39,850

39,850

39,850

(31,054)

(31,054) $

Solid Waste Totals

193,944

471,779 1,576

667,299

667,299

$ 202,740

471,779 1,576

676,095

676,095

365,556

72,000

437,556

437,556

229,743

229,743 $

405,406

72,000

477,406

477,406

198,689

198,689

154

CITY OF EL CENTRO NONMAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Solid Transit Waste Totals

Operating Revenues Charges for Services $ 31,911 $ 3,737,471 $ 3,769,382

Total Operating Revenues 31,911 3,737,471 3,769,382

Operating Expenses Contractual Services 210,723 210,723

Supplies and Services 3,670,725 3,670,725

General and Administrative 16,684 20,154 36,838 Total Operating Expenses 227,407 3,690,879 3,918,286

Operating Income (Loss) (195,496) 46,592 (148,904)

Non-Operating Revenue (Expenses) Intergovernmental 161,320 161,320

Interest Revenue 99 6,712 6,811

Total Non-Operating Revenue (Expenses) 161,419 6,712 168,131

Changes in Net Assets (34,077) 53,304 19,227

Net Assets - Beginning of Fiscal Year 3,023 176,439 179,462

Net Assets (Deficit) - End of Fiscal Year $ (31,054) $ 229,743 $ 198,689

155

CITY OF EL CENTRO NONMAJOR PROPRIETARY FUNDS

COMBINING STATEMENT OF CASH FLOWS For the fiscal Year Ended June 30, 2008

Solid Transit Waste Total

CASH FLOWS FROM OPERATlNG ACTIVITIES:

Cash Received from Users $ 31,91\ $ 3,942,939 $ 3,974,850 Cash Payments to Suppliers and Contractors (209,194) (3,862,599) (4,071,793) Cash Payments for General and Administrative Expenses (16,684) (20,154) (36,838)

Net Cash Provided (Used) By Operating Activities (193,967)

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Intergovernmental Revenue 161,320

Net Cash Provided (Used) By Noncapital Financing Activities 161,320

CASH FLOWS FROM INVESTING ACTIVITIES: Interest Received 531

Net Cash Provided (Used) in Investing Activities 531

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (32,116)

CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 40,912

CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 8,796 $

Reconciliation to Statement of Net Assets: Cash and Cash Equivalents $ 8,796 $

CASH FLOWS FROM OPERATING ACTIVlTlES: Operating Income (Loss) $ (195,496) $

Adjustment to Reconcile Operating Income (loss) to Net Cash Provided (Used) by Operating Activities:

Changes in Assets and Liabilities: (Increase) Decrease in Accounts Receivable Increase (Decrease) in Deposits Payable Increase (Decrease) in Accounts Payable and Accrued Liabilities 1,529

Total Adjustments 1,529

Net Cash Provided (Used) By Operating Activities $ (193,967) $

60,186 (133,781)

161,320

161,320

5,136 5,667

5,136 5,667

65,322 33,206

128,622 169,534

193,944 $ 202,740

193,944 $ 202,740

46,592 $ (148,904)

133,468 133,468 72,000 72,000

(191,874) (190,345)

13,594 15,123

60,186 $ (133,781)

156

INTERNAL SERVICE FUNDS

Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City on a cost reimbursement basis

Workers' Compensation - This fund is used to account for the revenue and expenses associated with providing Workers' Compensation benefits.

Post Employment Benefits - This fund is used to account for the revenue and expenses associated with providing unemployment benefits.

Group Health Insurance - This fund is used to account for the revenue and expenses associated with providing group health benefits.

Motor Vehicle - This fund is used to account for costs of operating and maintaining automotive equipment used by City departments.

157

CITY OF EL CENTRO fNTERNAL SERVICE FUNDS

COMBINING STATEMENT OF NET ASSETS June 30, 2008

ASSETS

Cash and Investments Other Receivables Interest Receivable

Total Assets

Workers' Compensation

$ 3,643,245 452,387

14,498 4,110,130

Post Employment

Benefits

$ 1,635,986

6,796 1,642,782


$ 1,197,093 16,395 6,218

1,219,706

Motor Vehicle

$ 43,064

398 43,462

$

Totals

6,519,388 468,782

27,910 7,016,080

LIABILITIES AND NET ASSETS

Liabilities: Accounts Payable Salaries/Benefits Payable

Total Liabilities

69,102

69,102

44,300

44,300

24,850 7,788

32,638

138,252 7,788

146,040

NET ASSETS Unrestricted

Net Assets

4,041,028

$ 4,041,028

1,642,782

$ 1,642,782

1,175,406

$ 1,175,406

10.824

,.;$;;.,..=.,;1,;;;0,~82;;,;4:", $

6,870,040

6,870,040

IS8

CITY OF EL CENTRO INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS


Charges for Services

Total Operating Revenues

Operating Expenses: Personal Services Supplies and Services Total Operating Expenses

Operating Income (Loss)

Workers' Compensation

$ 2,302,262

2,302,262

1,129,762 1,129,762

1,172,500

Post Employment

Benefits

$ 618,200

618,200

353,762 353,762

264,438


$ 3,370,414

3,370,414

3,363,511 3,363,511

6,903

Motor Vehicle

$ 438,000

438,000

194,687 243,093 437,780

220

$

Totals

6,728,876

6,728,876

194,687 5,090,128 5,284,815

1,444,061

Non-Operating Revenue (Expenses) Interest Revenue

Total Non-Operating Revenue


Net Assets - Beginning of Fiscal Year

Net Assets - End of Fiscal Year

112,842

112,842

1,285,342

2,755,686

$ 4,041,028

61,724

61,724

326,162

1,316,620

$ 1,642,782

53,884

53,884

60,787

1,114,619

$ 1,175,406

656

656

876

9,948

$ 10,824 $

229,106

229,106

1,673,167

5,196,873

6,870,040

159

CITY OF EL CENTRO INTERNAL SERVICE FUNDS

COMBINING STATEMENT OF CASH FLOWS For the Fiscal Year Ended June 30, 2008

Workers' Post Employment Compensation Benefits

CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Users Cash Payncents to Suppliers and Contractors Cash Payments for Employees and Benefit Programs

$ 2,297,545 (1,145,781)

$ 618,200 (353,762)

Net Cash Provided (Used) By Operating Activities 1,151,764 264,438

CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 116,488 65,550

Net Cash Provided (Used) In Investing Activities 116,488 65,550

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 1,268,252 329,988

CASH AND CASH EQUIVALENTS, BEGINNING OF FISCAL YEAR 2,374,993 1,305,998

CASH AND CASH EQUIVALENTS, END OF FISCAL YEAR $ 3,643,245 $ 1,635,986

Reconcil iation with Statement of Net Assets Cash and Investments

CASH AND CASH EQUIVALENTS $ $

3,643,245 3,643,245

$ $

1,635,986 1,635,986

Reconciliation ofOperating Income to Net Cash Provided (Used) by Operating Activities Operating Income (Loss) $ 1,172,500 $ 264,438

Adjustment to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities

(Increase) Decrease in Other Receivables Increase (Decrease) Accounts Payable and Accrued Liabilities

(4,717) (16,019)

Total Adjustments (20,736)

Net Cash Provided (Used) By Operating Activities $ 1,151,764 $ 264,438

Group Health Motor Insurance Vehicle Totals

$ 3,361,216 (3,380,263)

(19,047)

$ 438,000 (230,287) (193,088)

14,625

$ 6,714,961 (5,110,093)

(193,088)

1,411,780

57,539

57,539

258

258

239,835

239,835

$

38,492

1,158,601

1,197,093 $

14,883

28,181

43,064 $

1,651,615

4,867,773

6,519,388

$ $

1,197,093 1,197,093

$ $

43,064 43,064

$ $

6,519,388 6,519,388

$ 6,903 $ 220 $ 1,444,061

$

(9,198) (16,752)

(25,950)

(19,047) $

14,405

14,405

14,625 $

(13,915) (18,366)

(32,281)

1,411,780

160


PARTNERS: 9107 WILSHIRE BLVD•• STE 400 RONALD A.LEVY. C.P.A. BEVERLY HILLS. CA 90210 CRAIG A. HARUHBM. C.P.A. PHONE: (3101273-2745 HADLEY Y. HUI. C.P.A. fAX: (310)273-1689


REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Members of the City Council of the City of EI Centro

EI Centro, California

We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City ofEI Centro (City), California, as of and for the fiscal year ended June 30, 2008, and have issued our report thereon dated December 15,2008. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered the City's internal control over financial reporting as a basis for designing auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City'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 City's ability to initiate, authorize, record, process, or report financial data reliably in accordance with accounting principles generally accepted in the United States of America such that there is more than a remote likelihood that a misstatement of the City's financial statements that is more than inconsequential will not be prevented or detected by City's internal control.

161

OffiCES: BEVERLY HILLS· SANTA MARIA

MEMBER AMERICAN INSTTTV1( or C,P.A:s • CA~IA SOOElV Of C.PA', • CALIFORNIA SOCIE!Y or MUNICIPAL ~CE OFFICffiS • CAUfOllNIA ASSOCIATION OF SCHOOL ElUSIN~SS o;~lCtA!..S

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 prevented or detected by the City's internal control.

Our consideration of 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 the internal control over financial reporting 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.

We noted certain other matters that we reported to management of the City in a separate letter dated December 15, 2008.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instance 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 City Council, Management, federal awarding agencies, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Moss, Levy & Hartzheim, LLP Beverly Hills, CA December 15,2008

162


PARTNERS: 9107 WILSHIRE BLVD. STE 400 RONALD A. LEVY. C.P.A. BEVERLY HIllS. CA 90210 CRAIG A. HARl1HBM. C.P.A. PHONE: (3101273-2745 HADLEY Y. HUI. C.P.A. fAX: (310)273-1689


REPORT ON COMPLIANCE WITH ARTICLE xnm- APPROPRIATIONS LIMIT

The Honorable Members of the City Council of the City ofEI Centro EI Centro, California

We have applied the procedures enumerated below to the accompanying Appropriations Limit of the City of EI Centro, California for the fiscal year ended June 30, 2008. These procedures, which were agreed to by the League of California Cities and presented in their Article XmB Appropriations Limitation Uniform Guidelines, were perfonned solely to assist you in meeting the requirements of Section 1.5 of Article XIIIB of the California Constitution. This report is intended for the information of management and the City Council. This restriction is not intended to limit the distribution of this report, which is a matter of public record.

The procedures performed and our findings were as follows:

I. We obtained the computations from the City of EI Centro and detennined that the limit and annual adjustment factors were adopted by resolution of the City Council. We also detennined that the population and inflation options were selected by a recorded vote of the City Council.

2. For the accompanying Appropriations Limit, we added last year's limit to total adjustments, and agreed the resulting amount ofthis year's limit.

3. We agreed the current year information presented in the accompanying Appropriations Limit to the other computations described above.

4. We agreed the prior year Appropriations Limit presented in the accompanying Appropriations Limit to the prior year Appropriations Limit adopted by the City Council during the prior year.

These agreed-upon procedures are substantially less in scope than an audit, the objective of which is the expression of an opinion on the accompanying Appropriations Limit. Accordingly, we do not express such an opinion.

163 OffiCES: BEVERLY HillS· SANTA MARIA

MEMBP AMERICAN INSTrIlJIE OF C.P.A:, • CAUFOQNrA SOCIETY OF CP.A:$ • CALlFQRI\IIA SOCIETY C$ MUNICiPAl AI'W-ICE OFFICERS· CAlIFORNIA ASSOCIATION OF SCHOOl SUSINESS OfFICIAlS

Based on the application of the procedures referred to above, nothing came to our attention that caused us to believe that the accompanying Appropriations Limit was not computed in accordance with Article XIIIB of the California constitution. Had we performed additional procedures or had we conducted an audit of the accompanying Appropriations Limit and the other completed worksheets described above, matters might have come to our attention that could have been reported to you.

~H4, .:(~ .,,J,,,,!}~ Moss, Levy & Hartzheim, LLP Beverly Hills, CA December 15, 2008

164

STATISTICAL SECTION

Statistical Section

This part of the City of EI Centro's Comprehensive Annual Financial Report presents detailed information in a context for understanding what the information in the financial statements, note disclosures, and supplemental information says about the City's overall financial health.

Contents

Financial Trends These schecules 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 factors affecting the City's ability to generate its property and sales taxes.

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 and to help make comparison over time and with other governments.

Operating Information These schedule contain information about the City's operations and resources to help the reader understand how the City's financial information relates to the services the City provides and the activites it performs.

Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial report for the relevant year. The City implemented GASB Statement No. 34 as of June 30, 2004; schedules presenting government-wide information, include information beginning in that year.

I

CITY OF EL CENTRO NET ASSETS BY COMPONENT

LAST SIX FISCAL YEARS (Accrual Basis of Accounting)


Invested In Capital Assets, net of related debt

Restricted

Unrestricted Total Governmental Activities Net Assets

2003 2004

$28,583,648

20,371,749

7,486,620

56,442,017

Fiscal Year 2005 2006

$30,361,354 $28,870,122

23,267,909 26,804,255

8,709,680 11,369,288

62,338,943 67,043,665

2007

$45,474,580

52,414,019

8,789,396

106,677,995

2008

$57,566,767

58,137,871

8,367,919

124,072,557

Business-Type Activities


Restricted

Unrestricted Total Business-Type Activities Net Assets

5,906,071

0

49,852,783

55,758,854

22,378,738

0

37,142,597

59,521,335

25,531,455

0

36,265,244

61,796,699

20,471,742

7,715,631

39,036,994

67,224,367

45,118,649

7,697,555

26,600,045

79,416,249

Primary Government


Restricted

Unrestricted

34,489,719

20,371,749

57,339,403

52,740,092

23,267,909

45,852,277

54,401,577

26,804,255

47,634,532

65,946,322

60,129,650

47,826,390

102,685,416

65,835,426

34,967,964

Total Primary Government Net Assets $112,200,871 $121,860,278 $128,840,364 $173,902,362 $203,488,806

This infonnation is not available.

Source: City of EI Centro Finance Department

165

CITY OF EL CENTRO CHANGES IN NET ASSETS LAST SIX FISCAL YEARS

(Accrual Basis of Accounting) Page I of2

Expenses Governmental Activities

General Government

Public Safety

Community Development

Public Works

Parks and Recreation

Interest on Long-Term Debt Total Governmental Activities Expenses


Water

Wastewater

Hospital

Other Total Business-Type Activities Expenses

Total Primary Government Net Expenses

2003 2004

$1,921,870

10,548,732

7,426,721

6,190,449

1,952,488

522,402 28,562,662

3,707,932

4,871,774

74,435,726

3,487,869 86,503,301

$115,065,963


($7,430) $3,938,201

12,018,667 13,132,377

8,605,549 9,635,722

9,719,760 4,338,732

1,835,819 2,373,475

510,811 525,529 32,683,176 33,944,036

4,075,849 5,165,290

5,475,935 5,655,157

79,361,120 83,840,216

3,611,082 3,883,673 92,523,986 98,544,336

$125,207,162 $132,488,372

2007

$2,975,649

13,951,000

5,703,142

5,317,733

2,628,335

1,453,682 32,029,541

7,185,564

7,098,821

75,338,605

3,867,784 93,490,774

$125,520,315

2008

$3,105,885

15,709,050

3,745,060

6,401,722

3,027,847

1,970,229 33,959,793

7,123,415

7,220,805

81,947,795

3,918,286 100,210,301

$134,170,094

Program Revenues Governmental Activities

Charges for Services

General Government

Public Safety

Community Development

Public Works

Parks and Recreation

Operating Contributions and Grants

Capital Contributions and Grants Total Governmental Activities Program Revenues

Business-Type Activities Charges for Services

Water

Wastewater

Hospital

Other

Operating Contributions and Grants

Capital Contributions and Grants Total Business-Type Activities Program Revenues

Total Primary Government Program Revenues

$0

3,849,689

5,276,337

0 9,126,026

4,158,011

4,631,299

75,348,464

3,499,125

567,553

1,982,392 90,186,844

$99,312,870

$359,682

4,506,380

6,784,641

2,013,947 13,664,650

4,336,235

5,024,280

79,882,779

3,609,675

599,429

2,156,278 95,608,676

$109,273,326

$295,775

3,500,346

4,350,197

2,539,094 10,685,412

4,975,974

5,667,928

83,311,387

3,889,707

671,001

1,750,619 100,266,616

$110,952,028

$2,244,273

288,595

2,723,312

33,886

4,936,244

3,110,778 13,337,088

6,692,648

6,317,205

75,492,941

3,835,388

414,689

2,890,620 95,643,491

$108,980,579

$323,057

1,337,987

1,432,847

87,305

103,138

7,614,490

9,952,116 20,850,940

7,045,506

7,003,379

84,339,214

3,769,382

623,509

1,882,104 104,663,094

$125,514,034

166

of2

Net (Expense)/Revenue



CITY OF EL CENTRO CHANGES IN NET ASSETS LAST SIX FISCAL YEARS

(Accrual Basis of Accounting)

Fiscal Year 2003 2004 2005 2006

($19,436,636) ($19,018,526) ($23,258,624)

3,683,543 3,084,690 1,722,280

2007

($18,692,453)

2,152,717

2008

($13,108,853)

4,452,793

Total Primary Government Net Expense ($15,753,093) ($15,933,836) ($21,536,344) ($16,539,736) ($8,656,060)

General Revenues and Other Changes in Net Assets Governmental Activities

Taxes

Property Taxes

Sales Taxes

Other Taxes

License & Permits

Fines & Forfeitures

Revenue From Other Agencies

Bond/Loan Proceeds less increase in debt

Miscellaneous Revenue

Gain on Sales of Property

Use of Money and Property Total Governmental Activities

$5,171,397

7,053,567

3,807,111

637,015

101,186

5,908,891

0

250,928

1,196,210 24,126,305

$5,284,655

6,332,845

3,156,345

1,127,931

98,483

7,628,758

0

1,291,073 24,920,090

$6,127,471

7,612,804

4,309,493

627,032

308,777

7,098,025

850,000

1,029,744 27,963,346

$8,631,946

7,508,267

4,667,911

356,737

245,420

12,258,415

296,130

2,687,724 36,652,550

$9,220,182

10,199,467

6,100,198

997,746

281,781

3,575,397 30,374,771


Use of Money and Property

Other Total Business-Type Activities

455,959

259,105 715,064

664,824

32,967 697,791

876,849

(313,868) 562,981

1,742,045

1,742,045

7,128,138

23,653 7,151,791

Extraordinary Item - Litigation Settlement Extraordinary Item - Gain on Foreclosure of Property

Total Primary Government $24,841,369 $25,617,881 $28,526,327 $38,394,595 $37,526,562


Goverrunental Activities

Business-Type Activities Total Primary Government

$4,689,669

4,398,607 $9,088,276

$5,901,564

3,782,481 $9,684,045

$4,704,722

2,285,261 $6,989,983

$17,960,097

3,894,762 $21,854,859

$17,265,918

11,604,584 $28,870,502

I This information is not available.


167

CITY OF EL CENTRO FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting)

General Fund Reserved Unreserved

1999

$5,000 1,043,659

2000

$306,700 $2,305,201

2001

$5,000 $3,647,570

2002

$5,000 $3,168,225


$5,000 $5,000 $2,801,472 $3,971,954

2005

$5,000 $5,776,391

2006

$5,000 8,140,224

2007

$5,000 12,545,736

2008

$1,305,150 11,688,308

Total General Fund $1,048,659 $2,611,901 $3,652,570 $3,173,225 $2,806,472 $3,976,954 $5,781,391 $8,145,224 $12,550,736 $12,993,458

All Other Governmental Funds Reserved Unreserved, Reported In:

Special Revenue Funds Debt Service Funds Capital Projects Funds

6,773,024 1,299,607 7,697,417

7,448,073 1,448,601 8,564,147

10,106,923 1,714,114 4,635,409

9,635,215 1,942,123 4,190,616

12,585,963 1,847,583 3,201,568

17,468,912 2,867,705

971,588

16,267,256 3,644,551 3,356,102

17,749,096 4,865,171 4,189,988

24,978,631 9,649,468

21,228,925

25,355,720 11,694,089

_ll,486,525

Total All Other Governmental Funds $15,770,048 $17,460,821 $16,456,446 $15,767,954 $17,635,114 $21,308,205 $23,267,909 $26,804,255 $55,857,024 $59,536,334

Total Governmental Funds $16,818,707 $20,072,722 $20, I09,0 16 $18,941,179 $20,441,586 $25,285,159 $29,049,300 $34,949,479 $68,407,760 $72,529,792

Source: City of El Centro Finance Department

168

CITY OF EL CENTRO CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS (Modified Accrual Basis of Accounting)

Revenues Taxes Licenses and Pennits From Other Agencies Charges for Services Fines and Forfeitures Interest Other

1999

$9,260,729 107,873

7,591,840 284,768

52,645 920,140

1,223,369

2000

$10,653,859 111,669

6,444,148 353,732

56,915 1,037,770 1,785,476

2001

$ll,103,042 142,675

8,335,308 397,733 66,181

1,395,427 2,251,760

2002

$11,462,925 194,108

10,088,082 383,797 70,305

1,035,252 3,622,781


$12,134,443 $13,886,789 241,692 637,015

9,237,179 11,299,035 608,583 3,849,689 125,553 101,186 888,570 450,520

2,289,766 2,282,407

2005

$13,418,119 1,127,931

13,008,047 1,958,357

98,483 591,073

7,323,048

2006

$15,737,431 627,032

13,987,316 3,500,346

308,777 1,029,744 2,312,337

2007

$17,443,206 356,737

21,342,682 3,317,257

245,420 2,687,724 3,380,088

2008

$19,015,210 481,803

14,857,094 3,077,913

219,396 3,346,291 3,202,070

Total Revenues 19,441,364 20,443,569 23,692,126 26,857,250 25,525,786 32,506,641 37,525,058 37,502,983 48,773,114 44,199,777


General Goverrnnent Public Safety Public Works Parks and Recreation Community Development

Capital Outlay Debt Service

Principal Retirement Interest and Fiscal Charges Other

1,431,183 7,757,487 5,087,747 1,450,555 3,665,023

736,768 546,553 26,406

1,511.667 8,397,173 2,291,494 1,793,738 2,579,049

872,655 570,590 31,522

1,874,277 9,153,161 2,068,301 1,875,097 7,868,593

802,761 569,241 44,401

2,173,262 10,311,430 7,002,065 2,312,586 5,955,003

947,970 548,037 192,105

2,040,425 10,034,059 3,249,750 2,499,734 4,428,673

1,065,271 548,867 658,600

1,597,453 11,029,835 4,563,253 7,467,088 2,053,904

831,862 522,402 297,271

1,770,274 12,018,704 9,719,760 1,835,819 6,896,060

1,040,944 510,811 668,545

2,406,970 13,234,287 6,200,384 2,357,737 5,780,631

1,176,114 525,529 771,153

2,724,653 13,488,447 2,970,548 2,283,911 5,619,056 9,300,478

458,136 854,985

1,512,139

2,977,024 15,488,462 3,802,853 2,910,524 5,721,596 7,147,457

152,846 1,876,983

0

Total Expenditures 20,701,722 18,047,888 24,255,832 29,442,458 24,525,379 28,363,0611 34,460,917 3~,452,805 39,212,353 40,077,745

Excess of Revenues Over (Under) Expenditures (1,260,358) 2,395,681 (563,706) (2,585,208) 1.000,407 4,l43,5n 3Jl64,141 _ 5,050,118 _ 9~0,76I 4,122,032

Other Financing Sources (Uses) Transfers In Transfers Out Sales of Property Issuance of Long Tenn Debt Payment ofRefunded Bond Escrow Agent Lease ProceedS/Short Tenn Debt

1,301,666 (1,301,665)

800,000

1,238,603 (1,238,603)

858,334

1,598,895 (1,598,895)

600,000

1,582,132 (1,582,133)

1,417,372

1,670,057 (1,670,057)

500,000

1,179,738 (1,179,738)

700,000

1,204,278 ( 1,204,278)

700,000

1,731,448 (1,731,448)

850,000

2,065,655 (2,065,655)

562,002 31,195,000 (7,785,011)

3,289,784 (3,289,784)


Net Change In Fund Balances

800,001

($460,357)

858,334

$3,254,015

600,000

~36.294

1,417,371

_($I,167,8l7L

500,000

$1,500,407

700,000

$4,843,573

700,000

$3,764,141

850,000

$5,900,178

23,971,991

$33,532,752

o

$4,122,032

Debt Service as a percentage of non-capital expenditures 6.4% 9.2% 6,1% 7.0010 10,8% 6.1% 6,6% 7.9% 7,6% 6,3%


169

CITY OF EL CENTRO

PROPERTY AD VALOREM TAX ASSESSED VALVES LAST TEN FISCAL YEARS

City Redevelopment Agency Year County Portion of Portion of

Ended Assessed Tax Rate Assessed Assessed

June 30 Value 2 Per $100 Value Tax Rate Tax Levy Value Tax Rate Tax Levy

1999 1,190,977,616 1.0000 1,031,367,254 0.196% 2,020,465 159,610,362 1.036% 1,653,515 2000 1,249,279,834 1.0000 1,071,452,270 0.192% 2,060,169 177,827,564 1.032% 1,835,090 2001 1,299,275,370 1.0000 1,109,355,828 0.199% 2,209,361 189,919,542 1.083% 2,056,320 2002 1,370,677,204 1.0000 1,156,590,900 0.185% 2,145,089 214,086,304 1.026% 2,195,583 2003 1,451,247,992 1.0000 1,204,818,711 0.177% 2,136,239 246,429,281 1.012% 2,493,721 2004 1,623,838,675 1.0000 1,313,643,297 0.168% 2,210,900 310,195,378 1.018% 3,158,365 2005 1,659,657,727 1.0000 1,318,905,946 0.143% 1,890,762 340,751,781 1.024% 3,488,725 2006 1,975,300,675 1.0000 1,578,601,793 0.200% 2,182,924 396,698,882 0.820% 3,994,402 2007 2,318,419,841 1.0000 1,891,410,157 0.174% 3,283,938 427,009,684 1.048% 4,474,239 2008 2,719,192,480 1.0000 2,219,640,838 0.146% 3,230,297 499,551,642 1.030% 5,144,949

I Estimated Actual Value ofTaxable Propelty is not available since passage of Proposition 13 in 1978. Property assessed values may rise only to a maximum of2% per year unless there is new construction or when the property is sold. Consequently, estimated values are not available.

2 Pursuant to chapter 1207 of the statutes of 1978, "Assessed Value" means 100% of full taxable value.

Source: Imperial County Auditor's/Controller's Office

170

CITY OF CITY OF EL CENTRO DIRECT AND OVERLAPPING PROPERTY TAX RATES

(Rate per $100 of Assessed Value) LAST TEN FISCAL YEARS

1999 2000 2001 2002 Fiscal Year

2003 2004 2005 2006 2007 2008

City Direct Rates:

City basic rate

Redevelopment Agency

$0.225

0.115

$0.223

0.121

$0.219

0.131

$0.211

0.146

$0.201

0.167

$0.199

0.176

$0.196

0.180

$0.196

0.175

$0.202

0.193

Total City Direct Rate 0.000 0.340 0.344 0.350 0.357 0.368 0.375 0.375 0.371 0.395

Overlapping Rates:

Imperial County

EI Centro Elementary District

Central Union High School

Imperial Valley College District

Imperial County School Service

Central Cemetary District

0.260

0.223

0.220

0.066

0.019

0.017

0.259

0.221

0.219

0.066

0.019

0.017

0.259

0.218

0.218

0.065

0.018

0.017

0.256

0.215

0.216

0.065

0.019

0.017

0.254

0.210

0.213

0.087

0.018

0.016

0.252

0.206

0.213

0.087

0.018

0.016

0.252

0.206

0.213

0.087

0.018

0.016

0.254

0.206

0.214

0.087

0.018

0.017

0.260

0.214

0.177

0.087

0.019

0.017

Total Direct Rate 0.000 1.145 1.145 1.145 1.145 1.168 1.168 1.168 1.167 1.168

NOTE: In 1978, California voters passed Proposition 13, which sets the property tax rate at a 1.000% fixed amount. This 1.000% is shared by all taxing agencies for which the subject property resides within. In addition to the fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of bonded debt service on the voter-approved School District and Community College bonds.

I Information not available

Source: Imperial County Auditor/Controller's Office

171

CITY OF EL CENTRO PRINCIPAL PROPERTY TAXPAYERS

AS OF JUNE 30, 2008 AND 1998

Fiscal Year 2008 Fiscal Year 1998 Percent Of Percent Of

Total Total Assessed Assessed Assessed Assessed

Taxpayer Valuation Valuation Rank Valuation Valuation Rank

Imperial Valley Mall II, LP $ 40,499,125 1.49% 0.00%

IV PlazaLLC 21,532,841 0.79% 2 6,449,330 5.70% 6

RJ Development Co. LLC 16,331,276 0.60% 3 11,439,151 1.01% 2

West Courthouse LLC 16,247,032 0.60% 4 0.00%

Wal-Mart Stores Inc. 14,287,350 0.53% 5 0.00% 8

Lowes HIW Inc 14,271,852 0.52% 6 0.00%

Target Corporation 13,040,357 0.48% 7 0.00%

Dillard Stores Services Inc 12,617,230 0.46% 8 9,601,862 0.84% 3

Macy's California Inc. 12,259,539 0.45% 9 0.00%

Costco Wholesale Corporation 10,420,560 0.38% 10 0.00%

Parkside Vi11as Assoc. LTD 13,289,703 1.17%

John & Virginia Ryerson 9,195,149 0.81% 4

Pacific View Const. Co. 8,524,171 0.75% 5

Imperial Hardware 5,283,514 0.46% 7

Alexander Haagen Prop. 4,695,460 0.41% 8

BLM-El Centro 4,219,644 0.37% 9

VAT Partners II 4,190,980 0.37% 10

$171 ,507,162 6.31% $76,888,964 11.89%

Source: Imperial County Assessor's Office

172

CITY OF CITY OF EL CENTRO PROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS

Year Ended

June 30

Taxes Levied for the

Fiscal Year

Collected within the Fiscal Year of Levy

Total Percent Amount of Levy

Delinquent Tax

Collection

Total Collecti

Amount

ons to Date Percent of Levy

1999 3,673,980 3,529,687 96.07% 3,529,687 96.07%

2000 3,895,259 3,740,819 96.04% 3,740,819 96.04%

2001 4,265,681 3,976,290 93.22% 3,976,290 93.22%

2002 4,340,672 4,214,684 97.10% 4,214,684 97.10%

2003 4,629,960 4,485,142 96.87% 4,485,142 96.87%

2004 5,369,265 5,171,397 96.31% 5,171,397 96.31%

2005 5,379,487 5,284,655 98.24% 5,284,655 98.24%

2006 6,177,326 6,127,471 99.19% 6,127,471 99.19%

2007 7,758,177 8,631,946 111.26% 8,631,946 111.26%

2008 8,375,246 9,107,247 108.74% 9,107,247 108.74%

Note: The amounts presented include City property taxes and Redevelopment Agency tax increment.

Source: Imperial County Auditor's/Controller Office

173

CITY OF EL CENTRO RATIOS OF OUTSTANDING DEBT BY TYPE


Fiscal Year

General Bonded

Debt Outstanding


Tax Capital Allocation Leases Loan Payable

Total Governmental

Activities

Certificates Of

Participation


Capital Revenue Leases Bonds

Total Business-Type

Activities

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

7,685,393 7,391,399 6,970,886 6,582,877 6,512,417 5,317,295 4,355,449 2,944,829

21,546,773 19,500,911

98,155 328,834 281,073 877,593 772,546 615,684 459,739 784,061 202,366

49,520

800,000 700,000 700,000 750,000 500,000 700,000 700,000 850,000 950,000

1,300,000

8,583,548 8,420,233 7,951,959 8,210,470 7,784,963 6,632,979 5,515,188 4,578,890

22,699,139 20,850,431

15,976,037 15,788,067 15,529,178 10,883,128 10,509,529 16,137,416 15,464,602 80,392,387 79,480,477 78,598,687

683,199 1,197,414 3,445,520 2,688,156 1,953,040 3,120,163 3,076,112 2,816,616 2,530,211 3,073,735

5,269,663 4,797,753

38,790,595 38,811,108 38,831,621 37,877,134 36,882,647 35,843,159 34,763,672 33,634,185

21,928,899 21,783,234 57,765,293 52,382,392 51,294,190 57,134,713 55,423,361

119,052,162 116,774,360 115,306,607

Fiscal

Year

Total Primary

Government

Percentage Of Personal

Income I

Per

Capita I

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

$30,512,447 30,203,467 65,717,252 60,592,862 59,079,153 63,767,692 60,938,549

123,631,052 139,473,499 136,157,038

6.2% 6.0% 8.8% 7.5% 7.1% 7.3% 6.8% 13.5% 15.2% 13.8%

$794 775

1,674 1,546 1,493 1,592 1,487 2,943 3,315 3,143

Note: Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements.

I See the table of Population and Unemployment Rate later in this section for personal income and population data.

Source: City of Centro Finance Department

174

CITY OF EL CENTRO RATIOS OF GENERAL BONDED DEBT OUTSTANDING


Fiscal Year

Redevelopment Agency Tax Allocation

Bonds

Lease Revenue

Bonds

Less: Amounts Available inDebt Service

Funds

Total General Bonded

Debt

Outstanding

Percentage of Assessed

Value of

Property I

Per

Capita

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

8,985,000 8,840,000 8,685,000 8,525,000 8,360,000 8,185,000 8,000,000 7,810,000

31,195,000 31,195,000

0 0 0 0 0 0 0 0 0 0

1,299,607 1,448,601 1,714,114 1,942,123 1,847,583 2,867,705 3,644,551 4,865,171 9,648,227

11,694,089

7,685,393 7,391,399 6,970,886 6,582,877 6,512,417 5,317,295 4,355,449 2,944,829

21,546,773 19,500,911

0.6% 0.6% 0.5% 0.5% 0.4% 0.3% 0.3% 0.1% 0.9% 0.7%

200 190 178 168 165 133 106 70

512 450

I Estimated Actual Value ofTaxable Property is not available since passage of Proposition 13 in 1978. Property assessed values may rise only to a maximum of 2% per year unless there is new construction or when the property is sold. Consequently, estimated values are not available.


175

CITY OF EL CENTRO STATEMENT OF DIRECT AND OVERLAPPING DEBT

As of June 30, 2008

2007 - 2008 Assessed Valuation: Redevelopment Incremental Valuation:

City Adjusted Assessed Valuation

OVERLAPPING TAX AND ASSESSMENT DEBT EI Centro Elementary School District 1992 Bond Centro Union High School 1993 Bond Imperial Valley College 2004 Bond

TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT

TOTAL OVERLAPPING OTHER DEBT 2

TOTAL OVERLAPPING DEBT

CITY DIRECT DEBT I

TOTAL DIRECT AND OVERLAPPING DEBT I

I Excludes enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capita11ease obligations.

2 No overlapping debt exist

Source: Imperial County Auditor/Controller's Office

$2,719,192,480 499,551,642

$2,219,640,838

OUTSTANDING DEBT

6/30/2008

ESTIMATED SHARE OF

OUTSTANDING % APPLICABLE DEBT

$12,210,000 17,550,000 33,930,000

80.00% 82.00% 28.00%

63,690,000

o

$63690000

$9,768,000 14,391,000 9,500,400

33,659,400

o

$33,659,400

Q

$33,659,400

176

CITY OF EL CENTRO COMPUTATION OF LEGAL DEBT MARGIN

FOR THE FISCAL YEAR ENDED JUNE 30, 2008

Total Assessed Valuation $2,719,192,480

Debt Limit - 15% of Total Assessed Valuation $407,878,872

Amount ofDebt Applicable to the Limit 136,157,038

Legal Debt Margin $271,721,834

LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS

Total Debt Applicable

Total Legal AsA Debt Debt Debt Percentage

Fiscal Year Limit Applicable Margin Of Debt Limit

1999 $178,646,642 $30,512,447 $148,134,195 17.1% 2000 187,391,975 30,203,467 157,188,508 16.1% 2001 194,891,306 65,717,252 129,174,054 33.7% 2002 205,601,581 60,592,862 145,008,719 29.5% 2003 217,687,199 59,079,153 158,608,046 27.1% 2004 243,575,801 63,767,692 179,808,109 26.2% 2005 248,948,659 60,938,549 188,010,110 24.5% 2006 296,295,101 123,631,052 172,664,049 41.7% 2007 347,762,976 139,473,499 208,289,477 40.1% 2008 407,878,872 136,157,038 271,721,834 33.4%

Source: City ofEl Centro Finance Department

177

CITY OF EL CENTRO PLEDGED-REVENUE COVERAGE


Certificates of Participation (Water Fund) Certificates of Participation (Wastewater Fund)

Year Ended

June 30 Water

Revenue 1

Less: Operating Expenses :2

Net Available Revenue Principal Interest

Total Debt Service

Debt Service

Coverage Wastewater Revenue 1

Less: Operating Expenses 2

Net Available

Revenue Principal Interest

Total

Debt Service

Debt Service

Coverage

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

3,380,729 3,585,074 3,535,590 3,599,586 3,700,394 4,207,837 4,408,200 5,071,728 7,077,791

10,258,815

2,338,924 2,685,180 2,764,421 3,038,109 3,333,506 3,249,082 3,519,539 4,533,498 4,586,429 4,772,739

1,041,805 899,894 771,169 561,477 366,888 958,755 888,661 538,230

2,491,362 5,486,076

168,041 178,563 189,413

19,561 205,446 287,619 302,192 301,775 169,345 176,275

101,083 92,461 83,311 73,670 63,494 63,989 94,583 75,158

1,252,492 1,625,062

269,124 271,024 272,724 93,231

268,940 351,608 396,775 376,933

1,421,837 1,801,337

3.87 3.32 2.83 6.02 1.36 2.73 2.24 1.43 1.75 3.05

3,783,596 4,092,816 4,306,034 4,458,487 4,368,951 4,671,759 5,115,277 5,767,446 6,710,963

10,111,441

2,083,242 3,021,237 2,740,571 2,673,470 2,906,375 3,348,581 3,867,372 4,274,172 4,204,570 4,291,305

1,700,354 1,071,579 1,565,463 1,785,017 1,462,576 1,323,178 1,247,905 1,493,274 2,506,393 5,820,136

30,000 30,000 90,000

185,000 185,000 200,000 370,621 390,440 405,403 705,515

800,498 798,878 795,998 874,266 485,545 477,396 571,398 572,734

1,732,866 2,077,794

830,498 828,878 885,998

1,059,266 670,545 677,396 942,019 963,174

2,138,269 2,783,309

2.05 1.29 1.77 1.69 2.18 1.95 1.32 1.55 1.17 2.09

Revenue Bonds (Hospital Fund) Redevelopment Agency Tax Allocation Bond

Year Ended

June 30

Hospital

Revenue

Less: Operating

~enses2

Net Available

Revenue Principal Interest

Total

Debt Service

Debt Service

Coverage

Property Tax

fn ........ n,ent..._._.. Princi~ Interest Total

Debt Service

Debt Service

Coverage

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

53,675,453 51,728,572 56,908,736 60,224,254 62,405,258 75,348,464 79,882,779 83,992,429 75,492,941 84,339,214

51,295,910 49,226,582 52,685,225 55,102,240 59,125,882 69,259,700 73,387,230 77,748,347 69,726,995 76,521,688

2,379,543 2,501,990 4,223,511 5,122,014 3,279,376 6,088,764 6,495,549 6,244,082 5,765,946 7,817,526

975,000 1,015,000 1,060,000 1,100,000 1,150,000

1,698,880 2,980,235 2,005,235 1,963,798 1,920,000 1,875,610 [,828,860

1,698,880 2,980,235 2,980,235 2,978,798 2,980,000 2,975,610 2,978,860

3.01 1.10 2.04 2.18 2.10 1.94 2.62

1,270,611 1,413,389 1,537,290 1,701,935 1,937,498 2,439,386 2,752,499 3,239,705 4,148,981 4,417,356

140,000 145,000 155,000 160,000 165,000 175,000 185,000 190,000 200,000

0

503,565 497,686 491,269 489,026 476,861 468,869 460,226 450,990 653,901

1.344,868

643,565 642,686 646,269 649,026 641,861 643,869 645,226 640,990 853,901

1,344,868

1.97 2.20 2.38 2.62 3.02 3.79 4.27 5.05 4.86 3.28

I Interest Revenue is included for this calculation

Depreciation is eliminated for this calculation.

Source: City of Centro Finance Department

178

CITY OF EL CENTRO POPULATION AND UNEMPLOYMENT RATE


Personal Income 2

Fiscal Year Population I Total Per Capita

1999 38,450 494,082,500 12,850 2000 38,962 504,557,900 12,950 2001 39,247 748,989,748 19,084 2002 39,186 802,960,326 20,491 2003 39,567 836,802,483 21,149 2004 40,047 872,784,318 21,794 2005 40,982 893,161,708 21,794 2006 42,002 915,391,588 21,794 2007 42,071 916,895,374 21,794 2008 43,316 986,262,004 22,769

I Source: California Department of Finance

2 Source: California Employement Development Department

3 Source: El Centro Elementary School District

Elementary

Unemployment School

Rate 2 Enrollment 3

23.0% 6,252 25.0% 6,237 20.0% 6,261 17.0% 6,279 18.0% 6,239 17.0% 3,277 18.0% 6,200 15.0% 5,821 17.0% 5,732 22.5% 5,769

179

CITY OF EL CENTRO PRINCIPAL EMPLOYERS

AS OF JUNE 30, 2008 AND 1995

Fiscal Year 2008 Fiscal Year 1995 Percent of Percent of

Total Total Employer TyPe OfBusiness Employees Employment Rank Employees Employment Rank

County of Imperial I Governmental 1,800 3.09% 2,003 3.46%

Centinela State Prison Prison 1,285 2.21% 2 1,024 1.77% 3

EI Centro School System Education 1,209 2.08% 3 876 1.51% 4

Calipatria State Prison Prison 1,205 2.07% 4 0

Imperial Irrigation District Water and Power 1,200 2.06% 5 1,213 2.09% 2

Naval Air Facility Military 1,000 1.72% 6 203 0.35% 9

Homeland SecuritylU.S. Border Patrol I Government 991 1.70% 7 379 0.65% 7

EI Centro Regional Medical Center I Hospital 812 1.39% 8 574 0.99% 5

Imperial Valley College Education 520 0.89% 9 500 0.86% 6

Wal Mart I Retail 504 0.87% 10 320 0.55% 8

Cal Energy Operating Co.lOrmat Power 240 0.41% II

Costco I Retail 200 0.34% 12 120 0.21% IO

Burgers and Beers Retail 200 0.34% 12

Dillards I Retail 120 0.21% 13

11,286 19.39% 7,212 12.46%

"Total Employment" as used above represents the total employment within the County ofImperial

1 Employers within or near the geographical boundaries of the City of EI Centro

Source: City of EI Centro Economic Development Department

180

CITY OF EL CENTRO EMPLOYEES BY FUNCTION (FULL TIME EQUIVALENTS)


Fiscal Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Governmental Activities General Government 19.0 19.0 21.5 21.5 21.5 21.5 20.0 23.0 24.0 28.0 Public Safety 110.0 112.0 111.0 112.0 114.0 114.0 109.0 114.5 121.5 127.0 Public Works 20.3 20.3 20.3 20.3 22.3 22.3 12.0 13.3 13.3 13.0 Parks and Recreation 17.0 19.0 20.0 18.0 16.0 16.0 13.0 14.0 15.0 15.0 Community Development 14.0 14.0 16.0 17.0 17.0 17.0 20.0 20.5 21.5 21.0 Water 21.2 22.2 22.7 22.7 24.2 24.2 23.7 22.8 22.8 23.0 Sewer 17.5 19.5 20.0 20.0 19.5 19.5 24.3 23.9 23.9 24.0 Disposal 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Transit 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Government-Wide Employees 219.0 226.0 231.5 231.5 234.5 234.5 222.0 232.0 242.0 251.0

Source: City ofEI Centro Finance Department

181

CITY OF EL CENTRO CONSTRUCTION ACTIVITY AND BANK DEPOSITS

LAST TEN CALENDAR YEARS

Conunercial and Office I Residential Construction I

Other Additions and

Alerations I

Calendar

Year

Total

Pennits

Total

Valuation

Number

Pennits Valuation

Number

Permits Valuation

Number

Pennits Valuation

Bank Deposits 2'

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

337

360

333

436

492

763

1,432

787

698

701

12,362,667

13,251,237

18,243,271

23,569,342

37,894,994

130,863,059

180,074,779

77,837,746

55,021,009

73,238,974

112

96

100

88

125

164

261

180

186

280

7,871,782

7,456,356

11,944,839

14,247,411

21,627,094

78,785,477

48,624,137

26,717,271

34,921,521

39,305,493

200

231

210

312

330

543

1080

501

126

153

4,218,109

5,449,592

6,034,334

8,797,876

15,882,762

51,350,427

130,333,180

47,358,435

$16,510,363

$31,561,282

25

33

23

36

37

56

91

106

386

268

272,776

345,289

264,098

524,055

385,138

727,155

1,117,462

3,762,040

3,589,125

2,372,199

351,307

412,074

394,237

461,827

498,353

485,797

651,243

995,491

1,148,186

808,801

* Amounts expressed in thousands

Source: City of EI Centro Building Department

Source: Federal Deposit Insurance Corporation

182

CITY OF EL CENTRO CAPITAL ASSETS STATISTICS

BY FUNCTION LAST TEN FISCAL YEARS

1999 2000 2001 Fiscal Year

2002 2003 2004 2005 2006 2007 2008

Police: Stations Number of Police Officers

1 47

1 52

1 46

1 48

1 49

1 49

1 48

1 48

1 55

1 58

Fire: Stations Number of Firefighters

2 33

2 33

2 33

2 33

2 36

2 36

2 33

2 33

2 37

2 40

Parks and Recreation: Parks Community Centers

Library

Water:

Number of customers

Maximum pumping capacity

(thousands of gallons)

Average daily consumption

(thousands ofgallons)

Miles of lines and mains

12 1

1

7,793

17,000

8,000

125

12 1

1

7,859

17,000

8,000

125

12 1

1

7,915

17,000

8,000

125

12 1

1

8,015

17,000

8,000

125

12 1

1

8,092

17,000

8,000

127

13 1

1

8,175

17,000

8,000

131

13 1

1

8,775

17,000

8,000

131

13 1

1

9,404

17,000

8,000

131

13 1

1

9,514

17,000

8,000

131

14 1

1

9,519

17,000

8,000

131

Wastewater:

Maximum treatment capactiy


Average daily flow


Miles oflines and mains

8,000

4,000

120

8,000

4,000

120

8,000

4,000

120

8,000

4,000

120

8,000

4,000

122

8,000

4,000

129

8,000

4,000

129

8,000

4,000

129

8,000

4,000

129

8,000

4,000

129

Other:

City Land Area (Square Miles)

Miles of Storm Drain

Miles of City Streets

9.20

25.0

97.0

9.20

25.0

97.0

9.20

25.0

105.0

9.80

25.0

105.0

9.80

26.0

105.0

9.80

26.0

105.0

10.05

17.0

105.0

10.05

26.0

105.0

10.05

26.0

105.0

10.05

26.0

105.0


183

CITY OF EL CENTRO DEMANDS FOR CITY SERVICES


Number of Number of Number of Number of Number of Number of Utility Police 911 Emergency Sworn Fire Fire

Fiscal Year Population Customers Calls - Total Calls Officers Calls I Fighters

1999 38,450 7,793 48,975 47 33

2000 38,962 7,859 49,231 52 33

2001 39,247 7,915 52,235 46 33

2002 39,186 8,015 48,099 16,393 48 33

2003 39,567 8,092 50,368 15,657 49 36

2004 40,047 8,175 53,846 15,033 49 3,134 36

2005 40,982 8,775 46,830 15,120 48 3,184 33

2006 42,002 9,404 49,274 13,975 48 3,394 33

2007 42,071 9,514 57,034 15,956 55 3,301 37

2008 43,316 9,519 42,832 17,712 58 3,353 40

I Includes calls for fires, medical calls, traffic accidents and hazardous conditions.

2 This infonnation is not available.

Source: City of City of EI Centro Finance Department, Fire Depaltment, and Police Department

184

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