sacto 2011-2012 annual report

7/30/2019 SACTO 2011-2012 Annual Report

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Annual Report2011/2012 | Year Tw


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P A G E |

3[YEARS]

About SACTOMISSION

Founded in 1975, SACTOs mission is to recruit and grow high-value investment in

the Sacramento Region. A private, non-prot, and member-supported organization,

SACTO serves six countiesEl Dorado, Placer, Sacramento, Sutter, Yolo, and

Yubaand 23 cities.

POSItIONINg StateMeNt

SACTO is the Sacramento Regions leading facilitator of economic development.

It brings together the organizations, information, and resources in the pursuit

of jobs, talent, and investment needed to ensure regional prosperity and global

competitiveness.

Value

Over the last 37 years, SACTO has assisted hundreds of companies with locations

and expansions in the Sacramento Region, generating billions of dollars of investment

and strengthening our economy. Today the organization continues to create

opportunities through focus and fulllment of its mission.

Over 300

Company Locations

Over 100,000

New Direct Jobs

Billions of Dollars

of Direct Investment


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2 | P A G E

MSSAg fOM Th ChA

LASt YEAR, economic conditions continued to present challenges that, as a region, we showed

remarkable resilience in tackling and proactively identifying opportunities for change. Through these

efforts and the ongoing support of its members, SACTO was successful in fullling its mission to

attract and grow high-value jobs and investment in the region.

As you will see in the pages that follow, we accomplished a great deal over the past year. These

achievements give us cause to celebrate, but we must always be looking ahead and investing

resources in our future. SACTOs leadership in collaborative efforts to strengthen the regional

economy and to identify and nurture emerging growth industries will help to ensure future prosperity.

It is this focus that allowed SACTO to successfully execute year two of its ve-year strategic plan,

New Economy, New OpportunitiesBuilding a First-Tier Economy. These achievements are detailed

in the report that follows, but I would like to touch on a few of this years noteworthy highlights:

4SACTO assisted with the locations of companies that will result in 2,320 direct, new jobsand more than $13 million in capital investment for the region.

4 Company prospect levels increased by approximately 25 percent.

4 Investment at Workfacility tours were launched to give members an exclusive opportunity

to see rsthand how SACTO-assisted companies are making a difference in the

Sacramento Region.

4 To better communicate with members, SACTO introduced a new Member Exclusive

email campaign to share information on SACTO recruitment efforts and regional

business updates.

4 The Center for Strategic Economic Research (CSER) released the seventh annual

Prosperity Index(and expanded it to include a sustainability element), the fth annual

Sacramento Region Business Forecastseries, and completed the third full year of the

quarterly Business Condence Index.

4 SACTO and CSERs leadership were instrumental in advancing Next Economy, a

concerted economic development strategy to grow jobs and investment in the region.

4 The Professional Development Committee was launched to provide high-level,

professional development training programs to SACTO members.

SACTO was able to successfully advance the goals set forth in its strategic plan because of the

support and partnership of its members. Thank you for the opportunity to serve as SACTOs

2011/2012 Board Chair and for your investment in SACTO and the prosperity of the

Sacramento Region.

A Madde Rce

Chief Executive Ofcer, UC Davis Medical Center

2011/2012 SACTO Chair


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gONAL hghLghTS

AS wE REviEw the accomplishments of the past year, it is important to also take stock of the

many regional assets that contribute to SACTOs success in marketing its productthe six-county

Sacramento Region.

it iS A REion whERE...

The capital of the ninth-largest

economy in the world is located.

Two renowned public four-year

universities, seven community

colleges, local campuses of

top national universities, and

a multitude of vocational schools

produce a highly diverse and

qualied workforce.

Close to 84 percent of the

homes sold are affordable to a

family earning a median income.

Leaders work collaboratively

to develop and implement strategies

that diversify and strengthen our

regional assets and attract quality

jobs and investment.

Nationally renowned chefs take advantage of the regions agricultural bounty,

and the areas wineries and vineyards produce some of the countrys nest wines.

Population growth outpaced

the state and nation in the past ten

years and is expected to surpass

the national average by more than

double over the next ten years.

Costs of living and doing

business are lower than any other

major metro area in California.

A wide variety of museums,

galleries, theaters, landmarks,

stadiums, and performing arts

groups honor the regions rich history

and educate and entertain its residents.

Climate and geographic location

inspire year round outdoor recreation.

The Sacramento Region is one of

the sunniest locations in the U.S.

with 188 sunny days per year.

Despite economic challenges,

new high-rise buildings have

added to the ever-changing skyline,

and several major revitalization and

development projects have been

undertaken and completed, such

as the Crocker Art Museum

expansion, the Sacramento

International Airport Central

Terminal B, and the Harris Center

for the Arts at Folsom Lake College.

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NwconomyNwOpportunitiesB u i l d i N g F i r s t - t i e r e c N y

SACTOs new ve-year business attraction and marketing strategy, titled

New Economy, New OpportunitiesBuilding a First-Tier Economy, includes

four components that will bring the Sacramento Region to a new level on the global stage.

First-Tier Companies and Jobs Value and Quality

Attract High-Value and Headquarter

Companies to the Region

GAL:Strengthen and expand businessrecruitment efforts to capture quality economic

opportunities for the Sacramento Region with an

emphasis on high-value and headquarter companies,

clean/green technology companies, and internationalcompanies.

First-Tier Message Discover and Distinguish

Market the Region to External Markets and

Inform and Educate Internal Audiences

GAL: Plan and implement marketing andcommunications activities that will generate business

development opportunities, inform and educate

the residents of the Sacramento Region of unique

regional strengths, and support a rst-tier image of

the Sacramento Region.

First-Tier Vision and Ideas Leadership and Collaboration

Participate in the Development and

Implementation of Regional Initiatives that

Advance First-Tier Ideals and pportunities

GAL: Grow, support, and promote the clean/green industry sector in the Sacramento Region,

promote sustainability, and position the Sacramento

Region as a national and international leader in this

market segment.

First-Tier Achievement Standards and Success

Benchmark the Competition and the

Regions Progress Toward Leadership in

the Clean/Green Industry and Sustainability

GAL:Benchmark the regions competitiveposition and establish metrics to evaluate success.

componen


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SACTOs singular focus on business

attraction and expansion resulting in the

creation of jobs and investment for the

Sacramento Region has contributed greatly

to regional economic growth. Throughout

its 37-year history, it is this unwavering

commitment to its core mission that has

been the foundation for SACTOs success.

Pat Pathipati

Executive VP / CFO, Teichert, Inc.

dCT NfTS Ofthe new

LAN wLL SLT N:

New

higher-wage

jobs

Broader

tax

base

New and more visible prole for the

Sacramento Region as a leader in

the clean/green economy

Additional

foreign direct

investment

Increased knowledge and

pride about regional

accomplishments within the

Sacramento Region

- year strategy

P A G E | 5

High-value job creation and

infrastructure investment are critical

to the future vitality and quality of the

Sacramento Region. Through SACTOs

efforts and focus on high-value and

headquarter companies, we all benet

from a stronger, more diversied

regional economy.

G. Hardy Acree

Director of AirportsSacramento County Airport System


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6 | P A G E

compan loaon

NVSTMNT AT wOK

Impact Direct Indirect Induced Total

Employment 2,320 486 779 3,585

utput $166,121,571 $55,312,429 $98,350,519 $319,784,519

Value Added $108,798,790 $35,524,219 $61,946,894 $206,269,904

EmployeeCompensation

$88,760,459 $22,003,368 $32,450,044 $143,213,870

State & LocalTax Generation

$23,422,158

CapitalInvestment $13 Million

toa eonom impa

van ca cn

thnoo, llc (ct)ACT provides back ofce support services

for companies in the nancial services,

communications, and technology industries.

Sacramento was one of ve U.S. cities

considered in a national search for the new

facility. The company selected Sacramento

because of its positive experience at its existing

facility in the area, the availability of a qualied

workforce, and the benets of locating in an

Enterprise Zone.

vn co

Headquartered in San Francisco, Avenue Code

chose to locate its newest facility in Sacramento

to further boost the companys presence in

this country and support initiatives to bring IT

jobs back to the United States. Avenue Code

is an IT management consulting rm and has

implemented technology management systems

for clients ranging from small businesses to

Fortune 500 companies. The company is

focusing on creating jobs in the U.S. utilizing

technology talent that exists in the Sacramento

Region, while enjoying the cost benets.

us Foo

Based in Rosemont, Illinois, US Foods has

operations throughout the country. US Foods

is one of the nations leading foodservice

distributors to restaurants, healthcare and

hospitality facilities, government operations, and

educational institutions. After considering other

locations, the company ultimately chose the

Sacramento Region for its convenient access to

major markets, power reliability and affordability,

and the advantages of being located in a Local

Agency Military Base Recovery Area (LAMBRA).

yuil slr cop.

YOUIL SOLAR Corp., a subsidiary of YOUIL

ENSYS, is a Korea-based photovoltaic and solar

energy manufacturer. The company chose the

Sacramento Region for its U.S. headquarters

and sales and marketing ofce due to its strong

position in the U.S. photovoltaic market, its

proximity to the states policy-making hub, and

the support the company received from the

many regional partners that assisted in the site

selection process.


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P A G E | 7

Pop v Hhh

4 The number of active prospects increased by approximately

25 percent over the past year, reaching a historically high level.

4 Since 2006, interest in the Sacramento Region from international

companies has increased signicantly. About 23 percent of the

companies SACTO is working with are from international locations,

primarily within Asia and Western Europe.

4 Clean energy technology continues to represent an important group of

prospects with nearly one-third of all active prospects representing a

diverse range of clean energy technology-related activities.

4 Over half of SACTOs business prospects are interested in establishing

new or expanded manufacturing facilities.

ta in

4 Advanced Manufacturing 4 Agbiotech

4 Biotech/Life Sciences 4 Clean Tech

compan raon fo choonh saamno ron

4 Access to major markets

4 Cost effective and reliable power

4 Enterprise Zone and Local Agency Military Base Recovery Area

(LAMBRA) incentives

4 Proximity to state government

4 Skilled workforce

4 Solar market in Sacramento and California

4 Support from regional organizations

NVSTMNT AT wOK

We are very excited

about our decision

to set up another

facility in the

Sacramento Region.

Our experience with

SACTO, the workforce,

and the community

at large has been a

positive one. We look

forward to a long

future here.

Joseph Lembo

President and

Chief Executive Ofcer

Advanced Call Center

Technologies, LLC

$13 million

in capital investment

101

prospect visits

nce fully operational, these

companies could directly supportover2,300 jobsin the six-county

Sacramento Regions economy.Accounting for the ripple effect,

the recruited companies could

generate a total of almost 3,600 jobs

and$320 million of output

in the regions economy.


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8 | P A G E

California Industrial BiotechConference

(life sciences)

Palo Alto, CA

CoreNet Global Summit

(real estate)

Atlanta, GA

CoreNet Northern California

(real estate)

San Francisco Bay Area, CA

Germany/California Solar Day

(clean energy)

Los Angeles, CA

GoingGreen Investment Forum

(clean energy)

San Francisco, CA

Industrial Asset Management

Council Professional forum

(real estate)

Austin, TX

Intersolar Europe

(clean energy)

Munich, Germany

Intersolar North America

(clean energy)

San Francisco, CA

Medical Design & Manufacturing(MD&M) West

(medical device)Los Angeles, CA

Solar Power International

(clean energy)

Dallas, TX

MAKTNg Th gON

saamno ron Ko

4 Sacramento ranked 9th on the Forbes list of top U.S. cities

for manufacturing the only California city in the top 10

4 Sacramento was chosen as one of only two cities in the

U.S. for Richard Bransons/Barclays green building retrot

PACE funding program, estimated at nearly $190 million

4 The Sacramento Region has installed more solar power

per capita than any other metro area in the U.S. and has

more solar installed than any other state (NREL, PV

OpenAccess)

4 Brookings Institution ranks Sacramento in top 25 U.S. metro

areas for percent of very high-tech manufacturing jobs

4 Sacramento ties for 3rd on list of U.S. cities with the fastest

growth in tech jobs (Center for an Urban Future)

4 Sacramentos Core Green Economy grew faster than every

other region in the state from 1995 to 2010 according to

Next 10s Many Shades of Green 2012 report

4 Sacramento named one of the top 10 cities adopting smart

grid technology (U.S. News & World Report)

4 Sacramento is 1 of only 6 U.S. cities on both GE and Fords

lists of most electric vehicle ready cities

4 UC Davis ranks 8th on new list of Americas coolest

schools for its sustainability practices and teaching

(Sierra Club)

4 Sacramento ranks 6th Most Fun, Affordable U.S. City due

to its affordable housing and great restaurants and nightlife

(BloombergBusinessweek)

ta show anconfn

SAdNg Th wOd

SACTO continued to utilize social media

disseminate information within and outsid

the Sacramento Region.

th saamno B po o b aoa wh an

oanzaon a pofona an -on a

sct, an w vw o nvmn n h oanzaon

a an nvmn n h saamno ron.

ch d,Publisher & President, The Sacramento Bee

tw: 3 a, 700 foow, 275 ona oo nw w


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P A G E | 9

Area Development Consultants Forum

Black Economic Council

Green Industry Supplier Conference

California Association of Local Economic

Development Annual Conference

City of Sacramento Business First

Insurance Brokers and Agents

of Sacramento

International Economic Development

Council Leadership Summit

Intersolar North America

Leadership El Dorado

Leadership Roseville

Leadership Sacramento

Next Economy Regional Forums

Sacramento Association of Realtors

Sacramento Business Journal

Early Bird Economic Forecast

Sacramento Clean Tech Showcase

Sacramento Professional Environmental

Marketing Association

Smart Planning for a Green Future

Society for Marketing Professional

Services Roundtable

UC Davis Jobs Summit

University of Phoenix Forum for

Green Economy

Zeller Kern Annual Financial Forum

infomnh ron:

sct and

cser spakng

engagmn

saPanhp

cbanronas

SACTO vo on YouTube

at youtube.com/SACTOEDC

SACTO w at

twitter.com/SACTO_EDC

SACTO posts phoo at

facebook.com/SACTO.EDC

Powng PopySponsored by PG&E and awarded to Thunder Valley

Casino Resort for its engagement in the community

through job creation and charitable contributions, and

environmental stewardship through conservation.

Powng innovaon

Sponsored by SMUD and awarded to RCS Technology

for its innovative energy solutions that bring smart

grid management into homes and businesses.

MAKTNg Th gON

Nx eonomycapal

rgon Popy Plan

SACTO is one of four regional

organizations spearheading Next

Economy, a concerted business-led

economic revitalization strategy to

grow jobs and investment in the

Sacramento Region. Over the past

year, economic research and analysis

completed by the Center for Strategic

Economic Research (CSER) and

extensive input from key stakeholders,

community leaders, and topic experts

has resulted in the development of a

comprehensive regional action plan.

sd cnal

SACTO is actively involved in Seed

Central, an ongoing initiative of

the Seed Biotechnology Center

at UC Davis, SeedQuest, and a

growing number of companies and

organizations in the global seed and

food industry to capitalize on the

regions strengths and energize the

seed industry cluster surrounding

UC Davis.

Food cnal

A partner program of Seed Central,

SACTO is playing a leadership role on

the organizing board of Food Central,

whose mission is to further raise the

visibility and prestige of UC Davis and

the surrounding region as the worlds

preeminent food science and food

industry cluster in order to attract

more students, sponsored research,

talented individuals, and innovative

companies.

SACTO partnered with PG&E and SMUD to present the 2nd Annual Capstone Awards, consisting of two

awardsPowering Prosperity and Powering Innovation to celebrate regional successes and build pride and

awareness of exciting developments in the Sacramento Region.


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SACTOYA in

Vw2011-2012

Julysct attends Intersolar North America

conference in San Francisco, CA

Augustsct Investment at WorkSite Tour:

Siemens Industry, Mobility Division

sctassisted

Company

Announcement:

YUIL SLAR Corp.

September sctassisted

Company Announcement:

US Foods

20th Annual Trainor Fairbrook / sct

Golf Tournament at Catta Verdera

Country Club attracts a sell-out crowd

sct Fall Membership Celebration

at the grand opening of the new

Sacramento International Airport

Central Terminal B is attended

by 600 guests

sct attends Germany/California

Solar Day in Los Angeles, CA

sct attends GoingGreen 2011

Investment Forum in San Francisco, CA

Octobersctattends Solar Power International

in Dallas, TX

sct attends California Industrial

Biotech Conference in Palo Alto, CA

sct attends Consultants Forum

in Chicago, IL

sct President & CE Barbara Hayes

presents her annual growth outlook

for the Sacramento Region at the

Sacramento Business Journals2012

Early Bird Economic Forecast event

November2011 Prosperity Index

is released by cser

Bi-annual Sacramento Region

Business Forecast

is releasedby cser

sct attends

Corenet Global Summit

in Atlanta, GA

Januarysct Investment

at WorkSite Tour:

TELEFUNKEN

Semiconductors


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P A G E | 1

SACTO YA N Vw

February sct attends

Medical Design &

Manufacturing (MD&M)West Conference in

Anaheim, CA

sct attends TeamCalifornias

Meet the Consultants Forum

in Sacramento, CA

sct attends

Nippon Shokkens

U.S. headquarters

groundbreakingceremony in West

Sacramento, CA

sct attends Chongqing/U.S. Trade fce

signing ceremony in Los Angeles, CA

Marchsctattends CALBI2012

in San Francisco, CA

sct Professional Development Committee

presented SACT AdvantageAccelerating

Your Professional Development: Leveraging

LinkedIn to Grow Your Businessworkshop

Six sct-assisted companies are

honored at SACTs Salute to

New Industry Luncheon attended by

700 business and community leaders

Marchsct partnered with PG&E and SMUD

to present the 2nd Annual Capstone Awards

Powering Prosperity and PoweringInnovation awarded to Thunder Valley

Casino Resort and RCS Technology,

respectively

Aprilsct attends U.S. Economic Development

Adminstration (EDA) Seattle 2012 Regional

Conference in Portland, R

sct attends Industrial Asset Management

Council (IAMC) Professional Forum

in Austin, TX

June sct attends

Intersolar Europe in

Munich, Germany

600 guests attend the sct

Spring Membership

Celebration at Raley Field

sct Assisted Company Announcements:

Advanced Call Center Technologies, LLC

(ACT) and Avenue Code


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SACT MEMBERS INVESTIN

ACCO Engineered Systems Admail West AFLAC Air Systems of Sacramento, Inc. Airco Mechanical, Inc

Airgas USA, LLC AKT Development Corporation Allied Waste Services American Cancer Society American River Bank

The Annuity Store ANOVA Nexus Architects Aon Risk Services Arborwell ARCpoint Association Outsource Services, Inc

AT&T Atkins AugustineIdeas Baker-Will iams Engineering Group Bank of America Bank of Sacramento

Bank of the West Barcellona Bites Bartholomew Associates Bauer360 Benefit Resources, Inc

Bergelectric Corporation, Sacramento Best Best & Krieger LLP BFBA BloodSource Blue Diamond Growers

Blue Shield of California The Boldt Company Boudin Catering Boutin Jones Inc. Britannia Pacific Properties

B r o w n C o n s t r u c t i o n , I n c . B S K A s s o c i a t e s E n g i n e e r s & L a b o r a t o r i e s B T V D e v e l o p m e n t , L P

Buehler & Buehler Structural Engineers, Inc. Burketts Office Furniture and Supplies The Burton Law Firm

The Buzz Oates Group of Companies Cafeteria 15L California Chamber of Commerce California Statewide

Certified Development Corporation calpo hom and dong ARCHITECTS, Inc. Capital Corporate Locators, LLC

Capital Partners Development Company, LLC Capitol Area Development Authority Cardno Carvalho Family Winery

Cassidy Turley BT Commercial Catta Verdera Country Club CBRE CBS13 / CW31 C.C. Myers, Inc. Cemo Commercial, Inc

The Central Valley Fund, LP Century Management Company Cherry Creek Mortgage Company Citizen Hote

City of Citrus Heights City of Davis City of Dixon City of Elk Grove City of Folsom City of Galt City of Lincoln

City of Rancho Cordova City of Rocklin City of Roseville City of Sacramento City of West Sacramento City of Woodland

Clair Pringle & Associates LLP Clark & Sull ivan Construction Coll iers International Coll ins Electrical Co., Inc

Comcast Comcept Technologies, Inc. Comerica Bank, California Community Business Bank Comstock MortgageComstocks Magazine Conaway Preservation Group The Conco Companies ConnectPoint Search Group Cook CPA Group

Cordano Company Inc. Cornish & Carey Commercial Newmark Knight Frank CORT County of El Dorado

County of Placer County of Sacramento County of Sutter County of Yolo Cresa Sacramento Crossroads Diversied Services

C r o w e H o r w a t h L L P C u s h m a n & W a k e f i e l d o f C a l i f o r n i a , I n c . D a v i d L . B o n u c c e l l i & A s s o c i a t e s

David S. Taylor Interests, Inc. David Sobon Auct ions Dean F. Unger , AIA, Inc. Decker Landscaping Inc

Dell Richards Publicity Depot Park DesCor Builders DeVry University and its Keller Graduate School of Managemen

DLR Group Dome Printing Donahue Schriber Downey Brand Attorneys LLP Downtown Sacramento Partnership

DPR Construction DRC & Company Drexel University Center for Graduate Studies Dreyfuss & Blackford Architects

DST Output Economic & Planning Systems, Inc. 8minutenergy Renewables El Dorado Hills Chamber of Commerce

Elk G rove Econom ic Developm ent C orporat ion Elk G rove Insurance Serv ice, Inc. Em ai lDi rect , Inc

Employment Development Department Labor Market Information Division Employment Training Panel (ETP

Engineer ing System Solut ions (ES 2) Ernst & Young LLP Eskaton Foundat ion Esqui re IMAX Th eatre

Ethan Conrad Properties The Evergreen Company Exchange Bank Farmers & Merchants Bancorp / F&M BankFirst Citizens Bank First Northern Bank Five Star Bank Flintco Pacific, Inc. Folsom Economic Development Corporation

Folsom Lake Bank Frank M. Booth, Inc. Franklin Templeton Investor Services, LLC Fruitridge Printing & Lithograph, Inc

Gallagher Benefit Services GALLINA LLP Gekkeikan Sake (USA), Inc. GenCorp GeoEngineers GFBB Benefits

Gilbane Building Co. Glass Agency GNT Solutions Gold Pointe Corporate Center Association Golden Pacific Bank

Grafil , Inc. Graphic Focus Grebitus & Sons Jewelers Haley & Aldrich Hanson Bridgett LLP Hanson McClain

Harris & Bruno International Harsch Investment Properties, LLC Harvego Enterprises, LLC Haworth, Inc. HDR

Hefner, Stark & Marois, LLP Hil lenbrand Insurance Services Hines HMH Bui lders Holt of Cal i fornia

HP Hood LLC Hyatt Regency Sacramento Indoor Environmental Services Innovative Maintenance Solutions, Inc

Intech Mech anica l C om pany Inc. Inte l C orporat ion Intercul tura l Business C om m unicat ion InterState Oi

InterWest Insurance Services, Inc. The Investors Caddie, Inc. Jackson Properties, Inc. Jeanne Reaves Consulting

JEi, Corporate Services Jenkins Insurance Group Jones Lang LaSalle Jones-Campbell Co. JPMorgan Chase

Kaiser Permanente The Kamilos Companies KCRA TV - Channel 3 / KQCA - Channel 58 Keller Group KHS&S Contractors, Inc

Kikkoman Foods, Inc. Kimley-Horn and Associates, Inc. KKN, Inc. Koel ler, Nebeker, Carlson & Haluck, LLP

KPFF Consult ing Engineers KPMG LLP Kronick Moskovitz Tiedemann & Girard KVIE Lasher Auto Group

Law Offices of Gregory D. Thatch Lawson Mechanical Contractors LB Construction Inc. Level 3 Communications LLC

L i o n a k i s L i t t l e r M e n d e l s o n , P . C . L o c k e L o r d L L P L o s R i o s C o m m u n i t y C o l l e g e D i s t r i c

Los Rios Workforce & Economic Development LPA, Incorporated LPAS Architecture + Design Lyon Real Estate

Macer Media LLC The Macerich Company / Arden Fair Mall Madsen Roong & Waterproong, Inc. Mailrite Print & Mail, Inc

Maloof Sports and Entertainment The Mansour Company MarketOne Builders, Inc. MassMutual Financial Group

Mathew & Bimson Financial MatriScope Engineering Laboratories, Inc. MaxPotentials McCarthy Building Companies, Inc

McClellan Park McGee & Thielen Insurance Brokers, Inc. Mechanical Contractors Council Mechanics Bank

Medic Ambulance Service The Merchants National Bank of Sacramento Mercy, a member of Dignity Health

Meridian Systems MeringCarson Mikuni Japanese Restaurant & Sushi Bar Miles Treaster & Associates (MTA

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Miyamoto International , Inc. Earthquake + Structural Engineers Molina Healthcare, Inc. The Money Magne

M o n o g r a m C o m m u n i c a t i o n S e r v i c e s M o s s A d a m s L L P M u r p h y A u s t i n A d a m s S c h o e n f e l d L L P

Murphy, Campbell, Guthrie & Alliston National Electrical Contractors Association, Inc. Nelson Family of Companies

New York Life Insurance Company The Niello Company NMVinc. The Marketing Firm & Productions Nor-Cal Beverage Co., Inc

Norman S. Wright Mechanical Equipment Company NORR Associates North Valley Bank Northern California P.E.T. Imaging

N o r t h w e s t e r n M u t u a l N o s s a m a n L L P N u g g e t M a r k e t s , I n c . O a t e s I n v e s t m e n t s / C a b l e & K i l p a t r i c k

O . C . C o m m u n i c a t i o n s , I n c . O l d R e p u b l i c T i t l e C o m p a n y O t t o C o n s t r u c t i o n O w e n - D u n n I n s u r a n c e

Pacific Coast Building Products, Inc. Pacific Gas and Electric Company Pacific Realty Associates, LP (PacTrust

PairPoint Group, Inc. Panattoni Construction, Inc. Panattoni Development Company, Inc. Panera Bread Bakery-Cafe & Catering

P a p p a s I n v e s t m e n t s P a r a g a r y R e s t a u r a n t G r o u p P a r a m o u n t E q u i t y P a r k e r D e v e l o p m e n t C o m p a n y

Parking Solutions, Inc. / Parking Locator, LLC Parkinson Phinney The Party Concierge, Inc. Peak Cost Containmen

peopleG2 Perennial Pension & Wealth Performance Contracting, Inc. Performance Mechanical, Inc., An EMCOR Company

Peter P. Bollinger Investment Company Placer Title Company PricewaterhouseCoopers LLP PRIDE Industries

P r o d u c t i o n S t r a t e g i e s I n c . P r o E q u i t y A s s e t M a n a g e m e n t C o r p o r a t i o n P r o j e c t L e a d e r s h i p A s s o c i a t e s

PSAV Presentat ion Serv ices PSG C ert i f ied Publ ic Accountants PSG Tax C redi ts G roup, LLC Psom as

PulteGroup Inc. Purple Communications Rabobank, N.A. Radoslovich | Krogh, PC RagingWire Enterprise Solutions, Inc

Raleys Ramco Enterprises, Inc. Ramos Oil Company, Inc. Ray Stone Incorporated The Recognition Group, Inc

Recycling Industries, Inc. Redwood Electric Group, Inc. Resources Global Professionals Reznick Group Rideout HealthR i t a G i b s o n I n s u r a n c e & I n v e s t m e n t S e r v i c e s R i t t e r C o n s u l t i n g R i v e r C i t y B a n k T h e R i v e r D i s t r i c

Riverview Media Photography Robert Half International Roebbelen Romo Incentives Group Roseville Bank of Commerce

Roseville Chamber of Commerce Royal Electric Company Rubicon Partners, Inc. Rudolph and Sletten, Inc

Runyon Saltzman & Einhorn, Inc. Sacramento Asian Pacic Chamber of Commerce (SACC) Sacramento Association of Realtors

T h e S a c r a m e n t o B e e S a c r a m e n t o B u s i n e s s J o u r n a l S a c r a m e n t o C o n v e n t i o n & V i s i t o r s B u r e a u

Sacramento County Airport System Sacramento Employment and Training Agency (SETA) Sacramento Hispanic

Chamber of Commerce Sacramento Magazines Corporation Sacramento Metropolitan Chamber of Commerce

Sacramento Municipal Utility District Sacramento Philharmonic Orchestra Association, Inc. Sacramento Public Library

Sacramento Regional Transit Distr ict Sacramento River Cats Basebal l Club, LLC Sacramento State

Sacramento Technology Group / Sactech SAFE Credit Union Safety Center Incorporated Schetter Electric, Inc

S c o t t s S e a f o o d G r i l l & B a r S . D . D e a c o n C o r p . o f C a l i f o r n i a S e c u r i t a s S e c u r i t y S e r v i c e s

Separovich/Domich Developers Shasta Linen Supply, Inc. Sheraton Grand Sacramento SideMark Corporate Furniture

Siemens Industry, Mobility Division Sierra College Sierra Vintners Signature Reprographics Sioukas InvestmentsSlavic American Chamber of Commerce SMA America, LLC Sobon Estate / Shenandoah Vineyards Southwest Grading, Inc

Southwest Securities, Inc. Spencer Building Maintenance Squaretree Software Stafford King Wiese Architects

Standard Tel Networks LLC Stantec Consulting, Inc. Stawicki Financial Strategies & Insurance Solutions

S t e e l c a s e , I n c . S t o e l R i v e s L L P S t r a t e g i c T a x S o l u t i o n s S t r e n g B r o s . H o m e s , I n c

S u n d t C o n s t r u c t i o n , I n c . S u r e W e s t S u s a n G . K o m e n f o r t h e C u r e , S a c r a m e n t o V a l l e y

S u t t e r H e a l t h S a c r a m e n t o S i e r r a R e g i o n T a y l o r & W i l e y T e c t a A m e r i c a S a c r a m e n t o

Teich ert , Inc. Teknion TELEFUNKEN Sem iconductors Internat ional LLC TelePaci f ic C om m unicat ions

3fold Communications, LLC Trainor Fairbrook Trane TravelStore TRI Commercial Real Estate Services

Tri Counties Bank Tricorp Hearn Construction Truckee Tomorrow Tsakopoulos Investments Turner Construction Company

UC Davis Medical Center UCP of Sacramento and Northern California Ueltzen & Company, LLP Umpqua Bank

Unger Construction Company Unicity Technologies LLC Union Bank, N.A. United Corporate Furnishings, Inc

United Way California Capital Region University of California, Davis University of Phoenix, Sacramento Valley Campus

U n i v e r s i t y o f t h e P a c i f i c , M c G e o r g e S c h o o l o f L a w U P S U r a t a & S o n s C e m e n t , I n c . U . S . B a n k

Val ley C om m unicat ions, Inc. Val ley Farm Transport , Inc. Vasko Electr ic , Inc Veloci ty Venture C api ta l , LLC

Vigilant Vision Service Plan Visionary Integration Professionals, LLC Visual Communication Voit Real Estate Services

Volt Workforce Solutions Wallace-Kuhl & Associates Wallrich Landi Integrated Marketing Communications

Ward Associates Warren G. Bender Co. Waste Management Weidner Architectural Signage Weintraub Tobin

Wells Fargo and Company Wells Fargo Insurance Services Western Contract Western Health Advantage

W e s t l a k e , G r a h l , a n d G l o v e r A p r i v a t e w e a l t h a d v i s o r y p r a c t i c e o f A m e r i p r i s e F i n a n c i a l S e r v i c e s , I n c

W i l k e , F l e u r y , H o f f e l t , G o u l d & B i r n e y , L L P W i l l i a m s + P a d d o n A r c h i t e c t s + P l a n n e r s , I n c

WPCS, International - Suisun City, CA Xerox Corporation XL Construction Corporation XO Communications

Y g r e n e E n e r g y F u n d Y O U I L S O L A R C o r p . Y u b a C o m m u n i t y C o l l e g e D i s t r i c

Yuba-Sutter Econom ic Developm ent C orporat ion (YSEDC ) Z el ler Kern Z oom Im aging Solut ions, Inc

P A G E | 13

N THE SACRAMENT REGIN


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14 | P A G E

SACTOS SACh ATN

The Center for Strategic Economic Research

(CSER) played a key role in SACTOs business

attraction and expansion efforts by providingcustomized data and analysis for company

prospects. CSER also produced a variety of reports

that help keep business and community leaders

informed of economic conditions in the Sacramento

Region and expanded the Prosperity Index to

include a sustainability element.

CSER staff is regularly invited to speak on a variety

of economic development and regional economic

topics at events throughout the region and the

nation and serve as media sources for the

regional press.

Keepg SACto members frmed

27 reprs rugu e year

4 Monthly Economy Watch

4 Quarterly EconomicReports

4 Seventh installment of the Prosperity IndexSeries4 Fifth Sacramento Region Business ForecastSeries

4 Third year of the CSER/Sacramento Business Journal

Business Condence Index

4 Annual Sacramento Regional Report

These valuable publications were made possible through the

generous support of these underwriters:

Sgaure Uderrer

Supprg Uderrers

CSERs role in guiding

economic development and

corporate decision making

in the Sacramento Region

cannot be overstated.

CSERs regional economic

reports and consulting

services have helped

companies to make

informed decisions

and understand their

economic impact.

Rene Taylor

Director, Ward 1SMUD Board

CSER was quoted

in over 40 articles last year.

CSER partnered with SACT

and its members on over 300

research requests last year.

CSER worked on 15 consulting

projects, including providing

economic research

and analysis for Next Economy.

CSER is an economic research and

consulting group specializing in applied

research and strategy development in the

regional economics and economic

development elds.


17/32

P A G E | 15

Member support and regional collaboration have been at the core of

SACTOs success in fullling its mission for almost four decades. The

ongoing member support SACTO receives, despite recent economic

challenges, is a testament to our strength as a region. Business

and community leaders that invest their time, talent, and nancial

resources understand the importance of economic development to

the growth and stability of the regional economy.

4 New and increased membership revenue was at the

ges leel sx years.

4 try-e perceof SACTO members are actively

involved on a committee or the board.

4 Member retention was at90 perce.

A COLLCTV VSON :workin toeter to impact

cane in te reion

Earning AEDO accreditation tells our community

and prospects that SACTO has attained a measure of

excellence, ensuring that members investments

are well spent fullling SACTOs mission to

attract high-quality jobs and investment

to the Sacramento Region.

Steve Nichols

Northern Region Energy Solutions and Ser vice DirectorPacic Gas and Electric Company

Mark Crksea

Regional Manager

DPR Construction

Bb Dea

Executive VP, Regional Managing D

Newmark Grubb Knight Frank

Dad P. Parkes

President

Flintco Pacic, Inc.

A Madde Rce

Chief Executive Ofcer

UC Davis Medical Center

Sc Rse

Vice President

Runyon Saltzman & Einhorn, Inc.

Mcael Sdde

CFO at Buzz Oates Companies

Five Star Bank Board of Directors

Dad terey

Principal

PSG Tax Credits Group, LLC

Dale weArea Manager

Trane

J weld

Business Development Executive

Moss Adams LLP

tm Yamauc

Chief Financial Ofcer

PRIDE Industries

SACT would like to

thank these members

of the SACT Board of

Directors and Member

Development Committee

for each generating more

than $5,000 in new

membership revenue.

sct pofona xn onz

SACTOs professional excellence was recognized through

reaccreditation as an Accredited Economic Development Organization

(AEDO) by the International Economic Development Council (IEDC).Originally accredited in 2005, SACTO is e f ly 29 accreded

ecmc deelpme rgazas nationally (only three of which

are in the Western United States) that has attained this standard of

excellence.


18/32

thohsoa a

Twitter

LinkedIn

Facebook

YouTube

evn

Fall Membership Celebration

at Work Facility Tours

Leadership Appreciation ReceptionSalute to New Industry Luncheon

Spring Membership Celebration

Professional Development Workshops

20th Annual Trainor Fairbrook/SACTO Golf Tournament

thoh lahp invovmn

Board of Directors

Executive Committee

Audit Committee

Events Committee

Finance Committee

Golf Tournament Committee

Marketing and Public Relations Committee

Member Development Committee

Member Relations Committee

Monthly Economic Briefings

Professional Development Committee

MMS CONNCT

iesme a wrkfacility tours were launched to provide members an

exclusive opportunity to see rsthand how SACTO-assisted companies are

making a difference in the Sacramento Region. Investment at Worktours allow

SACTO members to obser ve the operations of some of these companies and

provide an opportunity to meet company representatives and connect with

other SACTO members. First year tours included Siemens Industry, Mobility

Division and TELEFUNKEN Semiconductors.

To better communicate with members and share behind the scenesinformation, SACTO introduced a new Member Excluseemail campaign.

These updates feature information on SACTO recruitment efforts and regional

business updates.

The Professional Development Committee was launched to provide high-level,

professional development training programs to SACTO members. First year

SACto ADvAntAEAccelerag Yur Prfessal Deelpme

trainings focused on professional networking and LinkedIn.

NEW MEMBER PRGRAMS INTRDUCED

Building a thriving

business community

that will provide the

opportunity for our

children to realize their

potential is vital to

each of us. SACTOs

leadership will continue

to be instrumental in

realizing that legacy.

Tom Perry-Smith

Partner, Audit ServicesCrowe Horwath LLP

16 | P A G E

Investment


19/32

P A G E | 17

LCTd LAdS

County ofEl Dorado

County ofPlacer

County ofSacramento

County ofSutter

County of

Yolo

County ofYuba

hal Scker Board of Supervisors Chair

Bll harrs Mayor, City of Marysville

Ea Elpck Mayor, City of Wheatland

D Saylr Supervisor and SACT Director

Je Krza Mayor, City of Davis

Crsper Cabald Mayor, City of West SacramentoCecla Aguar-Curry Mayor, City of Winters

Marl h. Skp Daes Mayor, City of Woodland

Larry Muger Board of Supervisors Chair

ary Balad Mayor, City of Live ak

J Mller Mayor, City of Yuba City

D nl Board of Supervisors Chair and SACT Director

Jeff Sley Mayor, City of Citrus Heights

James Cper Mayor, City of Elk Grove

Kerr hell City of Folsom

Barbara Paye Mayor, City of Galt

Mark Beecur Mayor, City of Isleton

Dad Sader Mayor, City of Rancho Cordova

Ke Js Mayor, City of Sacramento and SACT Directo

Krk Uler Supervisor and SACT Director

Ke haley Mayor, City of Auburn

See harey Mayor, City of Colfax

Specer Sr Mayor, City of Lincoln

Sadra Caler Mayor, Town of Loomis

Bre Srey Mayor, City of RocklinPaule Rccucc Mayor, City of Roseville

J Kg Supervisor and SACT Director

Mark Acua Mayor, City of Placerville

Clare Frer Mayor, City of South Lake Tahoe

Through its strong network of regional economic development partners, SACTO

connects businesses with the information and resources to evaluate, plan, and implement

a corporate location or expansion in the Sacramento Region.


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18 | P A G E

INDEPENDENT AUDITORS REPORT

To the Board of Directors

Sacramento Area Commerce and Trade Organization

We have audited the accompanying statement of nancial position of the Sacramento Area

Commerce and Trade Organization (SACTO) as of June 30, 2012, and the related statements of

activities and cash ows for the year then ended. These nancial statements are the responsibility

of SACTOs management. Our responsibility is to express an opinion on these nancial statementsbased on our audit. The nancial statements of SACTO as of June 30, 2011, were audited by

other auditors whose report dated September 7, 2011, expressed an unqualied opinion on

those statements.

We conducted our audit in accordance with auditing standards generally accepted in the

United States of America. Those standards require that we plan and perform the audit to obtain

reasonable assurance about whether the nancial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in

the nancial statements. An audit also includes assessing the accounting principles used and

signicant estimates made by management, as well as evaluating the overall nancial statement

presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the nancial statements referred to above present fairly, in all material respects,

the nancial position of SACTO as of June 30, 2012, and the changes in their net assets and their

cash ows for the year then ended, in conformity with accounting principles generally accepted in

the United States of America.

Sacramento, California

September 12, 2012

Reznick Group, P.C.

400 Capitol Mall

Suite 900

Sacramento, CA 95814-4424

Tel: (916) 442-9100


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P A G E | 19

ASSETS

2012 2011

Current assets

Cash and cash equivalents $ 192,098 $ 222, 257

Certicates of deposit 409,481 300,000

Accounts receivable 158,967 147,298

Prepaid expenses and other assets 23,150 35,972

Total current assets 783,696 705,527

Non-current assets

Certicates of deposit 351,308 500,000Furniture and equipment, net of accumulated

depreciation of $126,149 and $118,199 1 9,1 16 24,803

Total non-current assets 370,424 524,803

Total assets $ 1,154,120 $ 1,230,330

LIABILITIES AND NET ASSETS

Current liabilities

Accounts payable and accrued liabilities $ 72,855 $ 153,284Deferred revenue 51,650 25,600

Deferred rent 80,519 102,383

Capital lease current portion 3,501 3,314

Total current liabilities 208,525 284,581

Non-current liabilities

Capital lease 9,985 13,486

Total non-current liabilities 9,985 13,486

Total liabilities 218,510 298,067

Commitments

Unrestricted net assets 935,610 932,263

Total liabilities and net assets $ 1,154,120 $ 1,230,330

screNt re cerce Nd trde rgNiZtiN

stteeNts F FiNNcil PsitiN

June 30, 2012 and 2011

See notes to nancial statements


22/32

20 | P A G E

2012 2011

Revenues

Private sector support $ 92 1, 666 $ 95 1, 144

Public sector support 214,8 88 19 4,8 13

Meetings and events 360,855 349,835

Research 300,061 434,748

In-kind contributions 73,872 83,270

Advertising 43,292 50,155

Investment income, net 14,735 15,962

Other income 4,173 516

Total revenues 1,933,542 2,080,443

Expenses

Marketing 656,922 691,506

Membership, committees and outreach 531,245 691,331

Meetings and events 235,686 187,143

Administrative 498,392 493,137

Depreciation 7,950 5,426

Total expenses 1,930,195 2,068,543

Change in unrestricted net assets 3,347 11,900

Unrestricted net assets - beginning of year 932,263 920,363

Unrestricted net assets - end of year $ 935,610 $ 932,263


stteeNts F ctiVities

Years ended June 30, 2012 and 2011

See notes to nancial statements


23/32

P A G E | 2See notes to nancial statements

2012 2011

Cash ows from operating activities

Change in unrestricted net assets $ 3, 34 7 $ 11 ,900

Adjustments to reconcile change in unrestricted net

assets to net cash and cash equivalents (used in)

provided by operating activities

Depreciation 7,950 5,426

Net (increase) decrease in accounts receivable ( 11,669) 41,512

Net decrease (increase) in prepaid expenses and other assets 12,822 ( 7,332)

Net decrease in accounts payable and accrued liabilities (80,429) ( 21,679)

Net increase in deferred revenue 26,050 183

Net (decrease) increase in deferred rent ( 21,864) 25,357

Net cash and cash equivalents (used in) provided

by operating activities ( 63,793) 55,367

Cash ows from investing activities

Purchases of certicates of deposit ( 260,789) (200,000)

Proceeds from maturity of certicates of deposit 300,000 100,210

Purchase of furniture and equipment ( 2,263) ( 8,417)

Net cash and cash equivalents provided by

(used in) investing activities 36,948 (108,207)

Cash ows from nancing activities

Payments on capital lease ( 3,314) ( 1,328)

Net cash and cash equivalents used in

nancing activities ( 3,314) ( 1,328)

Net decrease in cash and cash equivalents ( 30,159) ( 54,168)

Cash and cash equivalents, beginning of year 222,257 276,425

Cash and cash equivalents, end of year $ 192,098 $ 222,257

Supplemental disclosure of cash ow information

Cash paid for interest $ 841 $ 403

Supplemental disclosure of noncash operating activities

In-kind contributions $ 73,872 $ 83,270

Supplemental disclosure of noncash investing and

nancing activities

Capital lease obligation for new copier $ $ 16,800


stteeNts F csH FlWs

Years ended June 30, 2012 and 2011


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22 | P A G E


Ntes t FiNNcil stteeNts

June 30, 2012 and 2011

NTE 1 - RGANIZATIN AND SIGNIFICANT ACCUNTING PLICIES

rganization and peration

Sacramento Area Commerce and Trade Organization (SACTO) is a nonprot organization

incorporated for the primary purpose of attracting new commercial and industrial enterprises to the

six-county Greater Sacramento Area. SACTOs purpose is to broaden the private sector job base

throughout the El Dorado, Placer, Sacramento, Sutter, Yolo and Yuba County areas. In addition,

SACTO provides research data and consultations to political subdivisions who wish to develop

their local economies. These services are provided through SACTOs wholly-owned economic

development division, Center for Strategic Economic Research (CSER).

Basis of Presentation

The nancial statements are presented in conformity with Accounting Standards Codication

958-205 (ASC 958-205), Not-for-Prot Entities - Presentation of Financial Statements.)

Under ASC 958-205, SACTO reports information regarding its nancial position and activities

according to three classes of net assets: unrestricted, temporarily restricted, and permanently

restricted. SACTO does not have any temporarily or permanently restricted net assets.

Cash and Cash Equivalents

Cash and cash equivalents are dened as those nancial instruments with original maturities of

three months or less and include highly liquid investments with a maturity of three months or less

when purchased, including certicates of deposit.

Accounts Receivable

Accounts receivable are stated at the amount management expects to collect from outstanding

balances. Management determines the allowance for doubtful accounts by using historical

experience applied to an aging of accounts. Based on information available, there was no allowance

for doubtful accounts required at June 30, 2012 and 2011.


25/32

P A G E | 23


Ntes t FiNNcil stteeNts - cNtiNued

June 30, 2012 and 2011

Accounts receivable consisted of the following at June 30:

2012 2011

Pledge receivable - private sector support $ 45,000 $ 67,425

Pledge receivable - public sector support 20,000 30,000

Meetings and events receivable 18,335 24,325

Research receivable 21,282 22,816

Advertising receivable 43,292

Interest receivable 7,025 2,732

Other receivable 4,033

$ 158,967 $ 147,298

Furniture and Equipment

Purchased furniture and equipment are stated at cost. Donated furniture and equipment are

recorded at fair value when received. SACTO reports gifts of furniture and equipment as

unrestricted support unless explicit donor stipulations specify how the donated asset must be

used. Depreciation is provided over the estimated useful lives (three to seven years) of the assets

using the straight-line method.

Revenues

The operations of SACTO are supported primarily by private sector contributions and local

government contracts and contributions. Private and public sector contributions are recognized

when cash is received, an unconditional promise is made, or assets and services are contributed.

All contributions are unrestricted. Deferred revenue reects amounts received in advance of

fundraising events which will be recognized as revenue in the period when the events occur.


26/32

24 | P A G E

Functional Allocation of Expenses

The costs of the various activities have been summarized on a functional basis in the statement

of activities. Accordingly, certain costs have been allocated among the activities and supporting

services benetted. Overhead allocation is based on estimated direct staff time expended for the

activity. As a result, personnel costs and other expenses were allocated as follows as of June 30:

2012 2011

Marketing 36% 35%

Membership, committees and outreach 31% 37%

Administrative 33% 28%

100% 100%

Related Party Transactions

SACTO follows a policy of members rst for purchases of goods and services. Any transactions

with individual members of the Board of Directors are disclosed to the Board. In accordance with

the policy of members rst, SACTO occasionally purchases goods and services from members

and the Board of Directors at a reduced cost or no cost at all. During the scal years 2012 and

2011, there were no signicant related party transactions.

In-Kind Contributions

In-kind contributions are measured at their fair value. During scal years 2012 and 2011, SACTO

received in-kind contributions in the amount of $73,872 and 83,270, respectively, for the following

services:

June 30,

2012 2011

Meetings and events $ 70,872 $ 40,048

Administrative 3,000 43,222

$ 73,872 $ 83,270



June 30, 2012 and 2011


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P A G E | 25

Income Taxes

SACTO is exempt from income taxes under the provisions of Section 501(c)(6) of the Internal

Revenue Code and Section 23701e of the California Revenue and Taxation Code. Accordingly,

these nancial statements do not reect a provision for income taxes and SACTO has no other tax

positions which must be considered for disclosure.

Use of Estimates

The preparation of nancial statements require management to make estimates and assumptions

that affect the reported amounts of assets and liabilities and disclosure of contingent assets and

liabilities at the date of the nancial statements and the reported amounts of revenue and expenses

during the reporting period. Actual results could differ from those estimates.

NTE 2 - CERTIFICATES F DEPSIT

SACTO maintained $760,789 and $800,000 in certicates of deposit at June 30, 2012 and

2011, respectively. Certicates of deposit are carried at cost which approximates fair value. At

June 30, 2012 and 2011, the entire balance, which comprises accounts at various local banks and

a credit union, is fully insured. Original maturities range from 12 to 47 months.

NTE 3 - CAPITAL LEASE

SACTO leases equipment under a long-term capital lease agreement. At June 30, 2012 and 2011,

$18,128 of equipment under capital lease is included in furniture and equipment in the statements

of nancial position. Accumulated depreciation of equipment under capital lease was $3,669 and

$1,079, respectively, at June 30, 2012 and 2011. Future minimum lease payments through the

next four years following June 30, 2012 are as follows:

2013 $ 4,155

2014 4,155

2015 4,155

2016 2,424

14,889

Less interest (1,403 )

Total $ 13,486



June 30, 2012 and 2011


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26 | P A G E

NTE 4 - CMMITMENTS

SACTO has a noncancellable operating lease for its ofce facility which expires March 31, 2015.

Future minimum lease payments through the next three years following June 30, 2012 are as

follows:

2013 $ 162,963

2014 167,045

2015 127,614

$ 457,622

Rent expense for the years ended June 30, 2012 and 2011 totaled $137,130 and $139,912,

respectively. Deferred rent of $80,519 and $102,383 was recorded as a liability at June 30, 2012

and 2011, respectively, to reect the cumulative effect of the known rent escalations over the life

of the renegotiated lease.

SACTO has elected to make their operating lease security deposit in the form of an irrevocable

letter of credit in the amount of $9,481.

NTE 5 - RETIREMENT PLAN

SACTO has a discretionary dened contribution plan which covers regular employees who

have attained the age of 21 and have performed services for SACTO for one year. For qualiedemployees who make elective deferrals, SACTO makes a matching contribution up to 4% of

the individuals salary. Employees are 100% vested in employer contributions. Additionally, the

employee may elect to defer up to 15% of their annual compensation, subject to certain limitations.

An additional catch-up contribution may be made to the plan on a pre-tax basis by employees

who have reached age 50 or older in the calendar year, subject to certain limitations. Employer

contributions to these accounts for the years ended June 30, 2012 and 2011 were $32,391 and

$27,607, respectively.

NTE 6 - CNCENTRATIN F CREDIT RISK

SACTOs cash and cash equivalents are deposited with nancial institutions insured by the Federal

Deposit Insurance Corporation (FDIC). Due to regulatory legislation signed into law during 2010,

the FDIC is required to fully insure all non-interest bearing bank balances through December 31,

2012. At June 30, 2012, all non-interest bearing bank balances and interest bearing accounts up

to $250,000 were fully insured. As of June 30, 2012, SACTO had bank balances of $215,090

which were fully insured. SACTO believes that no signicant concentration of credit risk exists

with respect to these balances at June 30, 2012.



June 30, 2012 and 2011


29/32

P A G E | 27



June 30, 2012 and 2011

NTE 7 - SUBSEQUENT EVENTS

Management evaluated all activity of SACTO through September 12, 2012 and concluded that

no subsequent events have occurred that would require recognition in the nancial statements or

disclosure in the notes to nancial statements.


30/32

28 | P A G E

OFFICERS

cha

Ann Madden Rice

Chief Executive Officer

UC Davis Medical Center

cha-e

David P. Parkes

President

Flintco Pacific, Inc.

ta

Cheryl Dell

Publisher & President

The Sacramento Bee

sa

Gary L. BradusShareholder

Weintraub Tobin

V cha -

mb dvopmn

Steve Dominguez

Senior VP & Manager,

National Banking Division

Bank of the West

V cha -

mb raon

Doug LinkTheatre Director and

Senior Consultant

Esquire IMAX Theatre

imma Pa cha

Brice W. Harris

Chancellor

Los Rios Community

College District

chf exv f

Barbara A. HayesPresident

SACTO

DIRECTORS-AT-LARGE

Doug Adams

VP of Sales and Marketing

RagingWire Enterprise

Solutions, Inc.

Debbie Augustine-Nelson

CEO / Executive Creative Director

AugustineIdeas

John Boyd, PsyD, MHA

Chief Administrative Officer

Sutter Center For Psychiatry

Steve Burnett

Partner

GALLINA LLP

Mark Cirksena

Regional Manager

DPR Construction

Jack Crawford, Jr.

General Partner

Velocity Venture Capital, LLC

Robert D. Dean

Executive Vice President,

Regional Managing Director

Newmark Grubb Knight Frank

Jon Foad

Vice President, Operations

Rudolph and Sletten, Inc.

Edward S. Glavis

Senior Vice President

Kaiser Permanente

David M. Higgins, Jr.

President

HMH Builders

Eva Hill

President

Britannia Pacific Properties

James Leet

Shareholder

Boutin Jones Inc.

Christopher J. Obmann

Sacramento Office

Managing Partner

Ernst & Young LLP

Lori A. Rianda

Market Manager -

Sacramento Region

Bank of America

Scott Rose

Vice President

Runyon Saltzman & Einhorn, Inc.

Dave Roughton

EVP / COO

SAFE Credit Union

Michael Stodden

CFO at Buzz Oates Companies

Representing Five Star Bank

W. David Tierney

Principal

PSG Tax Credits Group, LLC

Charles W. Trainor

President

Trainor Fairbrook

Greg Van Ness

Regional Managing Director,

Sacramento/Central Valley

Wells Fargo Insurance Services

Dale White

Area Manager

Trane

Tim Yamauchi

Chief Financial Officer

PRIDE Industries

DESIGNATED DIRECTORS

The Honorable Kevin Johnson

Mayor

City of Sacramento

The Honorable John Knight

Supervisor, District 1

County of El Dorado

The Honorable Kirk Uhler


County of Placer

The Honorable Don Nottoli


County of Sacramento

The Honorable Don Saylor


County of Yolo

Jeffrey M. Koewler

Managing Partner

Downey Brand Attorneys LLP

Toosje Koll

Managing Director

Resources Global Professionals

Jeanne Reaves

President and CEO

Jeanne Reaves Consulting

EX-OFFICIO DIRECTORS

G. Hardy Acree

Director of Airports

Sacramento County Airport System

William H. Duncan, IVPresident

Sierra College

John Frisch

Senior Vice President /

Regional Manager

Cornish & Carey Commercial

Newmark Knight Frank

Representing Sacramento

Metro Chamber

Dr. Bernadette Halbrook

Associate Director for Civic Affairs

California State University,

Sacramento

Dr. Douglas B. Houston

Chancellor

Yuba Community College District

Dr. Linda Katehi

Chancellor

University of California, Davis

Steven J. NicholsNorthern Region Energy Solutions

and Service Director

Pacific Gas and Electric Company

Narendra Pat M. Pathipati

Executive VP / CFO

Teichert, Inc.

Rene Taylor

Director, Ward 1

SMUD Board

2011/2012 OFFICERS AND BOARD OF DIRECTORS


31/32

Barbara A. Hayes

President & CEO

Robert Bob Burris

Senior Vice President

Gail Gebhardt

Vice President,

Development & Community Relations

Kim Neri

Vice President,Finance & Operations

Carol Nicknig

Vice President,

Marketing & Communications

Celeste Silveira

Manager,

Finance & Operations

Vanessa YoungManager,

Marketing & Communications

Rodrah Lukas

Receptionist / Administrative Assistant

CENTER FOR STRATEGIC

ECONOMIC RESEARCH (CSER)

STAFF

Ryan Sharp

Director

Helen Schaubmayer

Deputy Director

Heather Kendrick

Research Analyst

SACTO STAFF


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back cover

Sacramento Area Commerce and Trade Organization

400 Capitol Mall, Suite 2500

Sacramento, CA 95814

Ph 916 441 2144 | F 916 441 2312 | T ll F 1 800 SACTO12

sacto 2011-2012 annual report

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