For the Month Ending December 31, 2012

Transcription

1 Winner of the 1998 League of California Cities Helen Putnam Award of Excellence In Financial Management For the Month Ending December 31, 2012 Quick Look Indicators This Month This Year See Page Cash Balance 3 Residential Building Permits 4 Industrial & Commercial Bldg. Permits 5 Revenues 6 Expenditures 6 Investment Report 10 February 20, 2013 MANAGEMENT SERVICES DEPARTMENT

2 Executive Summary Cash Balances: The City s General Fund cash balance remains in a favorable position at $4.7 million, increasing $2.5 million from November s monthend. December 2012 s cash balance is $4.6 million higher than December 2011 s cash balance. Development Activity: Residential development construction activity through December totals 107 single family dwelling (SFD) permits (53.5% of the budget of 200 SFDs). Last fiscal year a total of 174 SFDs permits were issued. Revenues: General Fund revenues through December 2012 are $0.7 million lower than December 2011; contributing to the decline is the Lehman Brothers investment loss of $1.1 million and the loss of a $1.5 million interest payment from the former redevelopment agency for the Ventana property loan. Revenues are at 30% of the current annual budget, lagging the 50% primarily due to the State s Triple Flip which delays receipt of a large portion of the Sales Tax and Property Tax InLieu. Development related revenues have achieved 52% of their annual budget. Expenditures: Expenditures for the fiscal year are under budget at 46% compared to a target of 50%. Investment Report: The City s investments, through December 2012, have had a rate of return averaging 1.27%; the City s investment policy benchmark of the TwoYear Treasury Note had a return of 0.27%. Special Reports: Economic Development (page 26): In December, the City issued 79 new business licenses. The City has a total of 8,472 active businesses as of December 31, In December, there were 9 residential dwellings ready for occupancy based on the number of new sewer hookups. Capital Reinvestment Fund (page 27): For the ten years ending June 30, 2012, the City of Fontana expended $169.3 million from the General Fund on capital improvement projects throughout the City through this fund. As of December 2012 $17.3 million of General Fund money is budgeted in this fund on various improvement projects throughout the City. This excludes NonGeneral fund sources. MANAGEMENT SERVICES DEPARTMENT

3 CONTENTS Report Introduction. 2 Cash Balance and Cash Available.. 3 Development Activity..4 Residential Development Commercial and Industrial. 5 General Fund Revenue and Expenditure Summary... 6 General Fund Revenue Categories Revenue Highlights.. 8 Departmental Summary City and Agency Investment Report.. 10 Risk Liability Analysis. 19 Cash and Due To/From Detail Economic Development Capital Reinvestment Fund # Grants Report Customer Service Quality Assurance Survey Interchange Projects MANAGEMENT SERVICES DEPARTMENT

4 Report Introduction The following serves as an introduction to the Goals, Scope and Contents of this report. Goals: Scope: Frequency: Contents: Consistent with the City Council Goals of: To Operate in a Businesslike Manner; To Practice Sound Fiscal Management; and To Increase Citizen Involvement. This generalpurpose User Friendly financial report is designed to meet the following objectives: To provide concise information needed to gain a fair understanding of the City s financial position, results of operations and cash flows; To serve as the critical link between accounting systems and the users they are designed to serve; and To serve as an early warning document to indicate unfavorable financial events. Initially, this report s primary focus is on the fiscal events of the City s General Fund. This focus will be expanded to other financial activities of the City funds as they occur and this report matures. Current year, monthly and fiscalyeartodate (FYTD) information is provided on all charts and prior year data is provided in those areas where trend analysis is applicable. This report is not a substitute for the Comprehensive Annual Financial Report (CAFR). This report will be published monthly. This report consists of various sections as detailed on the previous page. Each schedule within these sections contains descriptive information about the schedule. Some of these reports contain graphs to aid the reader. These graphs include a current year and two prior year trend lines and, where available, a fiveyear averages trend line. These trend lines provide a meaningful comparison of current year data. Other Focus Features: Periodically, special reports will appear highlighting such fiscal areas as debt, cost allocation, long range fiscal plans, etc. Contacts Questions Suggestions: Call Lisa Strong, Management Services Director/Deputy City Treasurer Prepared by Dawn Brooks Page 2 MANAGEMENT SERVICES DEPARTMENT

5 Cash Balance and Cash Available Similar to a personal bank account, the City s Cash Balance (black solid line) is the amount of money in the bank at a certain date. When other funds temporarily borrow money from the General Fund, the remaining amount is called Cash Available", (solid green line ). The "Net Monthly Cash (blue columns ) is the difference between the monthly revenues and expenditures. Occasionally, more expenditures will be paid than revenues received during the month. When this occurs, the column drops below the zero line and turns white. If this situation were continuous, a cash flow problem would develop. December's ending cash balance reflects an increase of $2.5 million as compared to November's ending balance. The City s General Fund Cash Available increased by $1.7 million since November. Other funds have temporarily borrowed $2,609,380 from the General Fund to offset negative cash balances. This advance is primarily attributable to: Measure I Reimbursement $521,168, PD Traffic Safety (FStop) $155,401, Prop 1B $319,617, Federal Law Enforcement Block Grant $748,405, State COPS Greant $212,794, and After School Programs $602,920. Repayments to the General Fund will be made as funds become available. See page 20 for a listing of all funds with negative cash. FY 1213 $46,000 $43,000 $40,000 $37,000 $34,000 $31,000 $28,000 $25,000 $22,000 $19,000 $16,000 $13,000 $10,000 $7,000 $4,000 $1,000 $(2,000) $(5,000) $(8,000) $(11,000) $(14,000) $(17,000) 15% Budgeted Reserve $10.0 million FY 1213 General Fund Cash Balance and Cash Available Fiscal Year in ($000's) FY 1011 FY 0812 Average Cash Balance top line Cash Available bottom line Jul Aug FY 1112 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Net Monthly Cash FY 1213 Balance FY 1213 Available FY 1112 Balance FY 1112 Available FY08FY12 Avg. Bal. FY08FY12 Avg. Avail. FY 1011 Balance FY 1011 Available General Fund Cash Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Net Monthly Cash $ (9,924) $ (4,822) $ (1,350) $ (4,553) $ (911) $ 2,513 FY 1213 Balance 13,838 9,016 7,666 3,113 2,202 4,715 FY 1213 Available 3,781 3,227 1, ,106 FY 1112 Balance 18,285 4,647 2,125 2, ,072 11,691 7,526 7,752 20,334 23,762 FY 1112 Available 10,832 (2,186) (3,827) (3,260) (5,133) (4,539) 3,749 3,074 (2,114) (2,208) 10,503 16,708 July Budgeted Transfers were recorded in the amount of $7,814,900 from the General Fund to various funds to cover operating expenditures for the fiscal year. Page 3

6 Development Activity... Residential Residential Development activity often acts as a barometer of local economic conditions. The brown thick line on the chart represents last year s building activity within the City. This year s activity is represented by the solid thick blue line. In December, the City issued 22 SFD building permits. 1,100 1, Single Family Dwellings (SFDs) Building Permits Issued for New Residential Construction The following are all located north of Foothill and south of Interstate 15. The West End Development, West Gate, Summit Heights, Landings, Rancho Fontana, Sierra Lakes, Walnut Village, Northgate, Citrus Heights North, Bellgrove II, Fontana Star, Morningside, and Stratham Homes. The Hunter s Ridge, Development and Coyote Canyon are located north of Interstate 15. The Country Club Estates Development and Sycamore Hills are located south of the Interstate10 Fwy and east of Sierra Avenue. The Southridge Development is located south of the Interstate10 Fwy and west of Sierra Ave (0). There were 0 permits issued to independently owned property (InFill & City Wide). There were 22 permits issued in the City Wide & InFill Area. Certificates of Occupancy: New sewer hookups (FYTD 79) indicate that new construction is ready for occupancy. A large number of residential housing hookups follow a large number of previously issued building permits FY HookUps Budget 200 SFDs Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly FY FY Bellgrove II California Landings City Wide Citrus Heights Country Club Estates Coyote Canyon Fontana Star Hunter's Ridge Landings Morningside FY Residential Permits FY Residential Permits Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Northgate Rancho Fontana 87 Sierra Lakes 20 Southridge Stratham Group Summit Heights Sycamore Hills Walnut Village West End New West FY Average Residential Permits Page 4

7 Development Activity... Commercial & Industrial Commercial and Industrial Development activity, similar to residential development, acts as a barometer of the local economic conditions. New activity in these development categories initially creates construction jobs and ultimately provides for a permanent employment base for the community. Development activity over the past several years has been light as the industry has sought existing vacant buildings. As these existing structures become occupied and the vacancy rate diminishes, new development activity starts to increase. 700,000 Sq.Ft. 600,000 Sq.Ft. 500,000 Sq.Ft. 400,000 Sq.Ft. 300,000 Sq.Ft. 200,000 Sq.Ft. 100,000 Sq.Ft. 0 Sq.Ft. 100,000 Sq.Ft. Commercial Building Permits Issued (Sq. Ft.) Budget 100,000 Sq. Ft. Monthly FY Actual FY Actual FY Actual FY Average Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 203, ,779 44,026 The City issued 1 commercial building permits in December. The City issued 1 new industrial building permits in December. Square Footage Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly ,005 4,332 FY Actual ,405 20,405 20,405 24,737 FY Actual 8,383 8,506 8,506 15,146 20,226 20,226 20,226 20,226 29,610 33,351 33,951 44,026 Notes: July Pump Beach Ave. August No Activity. September 20,005 sq ft two story vocational 9460 Sierra Ave. October No Activit. November No Activity. December 4,332 sq ft office Valley Blvd. 1,500,000 Sq.Ft. 1,000,000 Sq.Ft. Industrial Building Permits Issued (Sq. Ft.) Monthly FY Actual FY Actual FY Actual FY Average 500,000 Sq.Ft. 454, ,687 Budget 200,000 Sq. Ft. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Square Footage Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly 420, ,896 1, ,412 FY Actual 420, , , , ,025 1,243,437 FY Actual 454, , , ,016 Notes: July 419,123 sq ft warehouse Beech Ave, 1,777 sq ft single story Boyle Ave. August No Activity. September 106,455 sq ft warehouse Tamarind Ave, 308,780 sq ft warehouse Tamarind Ave, 5,661 sq ft truck service Cherry Ave. October No Activity. November Mechanical Philadelphia Ave. December 400,412 sq ft warehouse Etiwanda Ave. Page 5

8 General Fund Financial Summary The General Fund is comprised of such general revenue sources as taxes, fines, licenses and fees. The fund provides for such services as Public Safety, Recreation, Legislative and City Administration. The use of money in this fund is generally not restricted to specific services and projects as is the case with other city funds. Revenues The green solid line on the adjacent chart, shows that the General Fund revenues are 30% of the annual budget. Yeartodate total revenue is $0.7 million lower than last year s revenue levels through December's monthend. $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Revenues Fiscal Year ($000's) ` Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly Actuals FY Actuals FY Average FY Actuals FY Budget FY Actuals Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly Actuals $ 1,397 $ 4,095 $ 3,905 $ 3,192 $ 4,059 $ 6,444 FY Actuals 1,397 5,492 9,397 12,589 16,648 23,092 FY Budget 6,474 12,949 19,423 25,897 32,371 38,846 45,320 51,794 58,268 64,743 71,217 77,691 FY Actuals 2,918 7,515 11,260 15,749 19,315 23,810 40,166 44,934 49,081 54,646 71,959 79,980 Expenditures The red solid line represents the General Fund expenditures actually paid and do not include $4.8 million of encumbrances (commitments made and agreed to be paid after obligations are fulfilled). The City s operating departments are on course with their expenditure plans. Additional details by department are listed on page 9. $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Expenditures Fiscal Year ($000's) Excludes encumbrances of $4.8m Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly Actuals FY Actuals FY Average FY Actuals FY Budget FY Actuals Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly Actuals $ 4,850 $ 7,203 $ 5,552 $ 5,515 $ 5,303 $ 5,443 FY Actuals 4,850 12,052 17,604 23,119 28,422 33,865 FY Budget 6,150 12,300 18,450 24,600 30,750 36,900 43,050 49,200 55,350 61,500 67,650 73,800 FY Actuals 5,372 10,635 17,755 22,878 28,355 33,974 39,744 44,769 52,104 57,471 63,022 68,936 Page 6

9 Revenues The General Fund s 140+ revenue accounts are categorized by like types of activity on the adjacent chart. In general, revenues can be further summarized into Taxes, Fees, State Subventions and other revenues. Over onehalf of the City s General Fund revenues are derived from taxes. The top two budgeted tax revenue sources are Sales Tax (35.5% $27.6 million), and Property Tax (21.8% $17 million). Through December 2012, the General Fund s actual revenues received are 30% of the annual budget amount. Development related revenues have achieved 52% of their annual revenue budget. During December, construction permits were issued for 22 additional homes. $90,000 $85,000 $80,000 $75,000 $70,000 $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 General Fund Revenue by Summary Categories Fiscal Year ($000's) 79,980 79,767 77,692 76,460 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly Actuals FY Actuals FY Actuals FY Average FY Actuals FY Budget MVLF revenues are being significantly affected by the economic downturn. State charges have grown far in excess of VLF collections. While state charges increased at about 10% per year, actual revenue collections have been declining. This decline, together with the State charges has caused a cash flow issue in recent months in which, following state charges, there were zero funds left to allocate to cities. Revenues Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FYTD Budget Actuals Sales Tax $ 1,402 $ 1,866 $ 2,075 $ 1,468 $ 1,934 $ 2,152 $ 10,897 $ 27,600 $ 26,736 Business Tax ,067 5,223 5,481 Property Tax ,428 1,789 16,985 16,013 Franchise Fees ,955 5,800 5,675 Motor Veh. InLieu Development ,867 3,579 3,203 Recreation ,230 2,544 2,680 Int. and Rentals (1,018) ,891 7,955 Other Revenues (552) ,878 2,980 8,913 9,093 Reimbursables ,051 2,156 3,144 Monthly Actuals $ 1,397 $ 4,095 $ 3,905 $ 3,192 $ 4,059 $ 6,444 $ 23,092 $ 77,691 $ 79,980 FY Actuals 1,397 5,492 9,397 12,589 16,648 23,092 FY Budget 6,474 12,949 19,423 25,897 32,371 38,846 45,320 51,794 58,268 64,743 71,217 77,691 FY Actuals 2,918 7,515 11,260 15,749 19,315 23,810 40,166 44,934 49,081 54,646 71,959 79,980 Prior Yr July Interest and Rentals includes $1,105,635 for the loss on the Lehman Bros investment. Page 7

10 General Fund Revenue... Highlights Two of the most significant revenue sources for the General Fund are Sales Tax and Property Tax InLieu of VLF. These two sources account for 53% of the estimated General Fund revenues. Sales Tax: Sales Tax revenues, fiscal year to date, are $10,897,190 or 39% of the annual budget of $27,600,000. Property Tax inlieu of VLF: Property Tax InLieu of VLF revenues to date are $0 or 0% of the total annual budget of $14,060,000. This revenue is received onehalf in February & onehalf in May. $26,000,000 $24,000,000 $22,000,000 $20,000,000 $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Sales Tax Revenue General Fund Fiscal Year Current Month FY Actuals FY Actuals FY Average FY Actuals FY Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Property Tax InLieu of VLF General Fund Fiscal Year Current Month FY Actuals FY Actuals FY Actuals FY Budget Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun The Budget Act of 2004 contains a "swap" of city and county Vehicle License fee revenues for property tax revenues effective for the FY0405 budget year. This act, also known as the State's "Triple Flip" includes a permanent reduction of the VLF rate from 2% to 0.65%. The VLF backfill is eliminated and replaced with a like amount of property taxes, dollarfordollar payable in lumpsum payments twice a year in January and May. Subsequent to the FY0405 and FY0506 base years, each city's "property taxes in lieu of VLF" will increase in proportion to the growth in gross assessed valuation in the city. Remaining VLF revenue is deposited in the Motor Vehicle License Fee Account. After the State administrative charges, there are zero funds left to allocate to cities. Tax collections for Fiscal year 1998/99 ceased after December Page 8

11 General Fund Expenditure Summary by Department At the end of December 2012, the Departments expenditures are running below the estimated fiscal year to date budget as illustrated by the solid red line on the chart. These expenses do not include $4.8 million of encumbrances. The Departments are on track with their expenditure plans. To date, the Departments have spent 46% of their annual budgets compared to a target of 50%. $80,000,000 $75,000,000 $70,000,000 $65,000,000 $60,000,000 $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $ General Fund Expenditures Department Summary Fiscal Year Excludes Encumbrances of $4,766,866 $68,935,670 $68,170,334 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Departments Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun City Administration $ 43,604 $ 110,688 $ 188,542 $ 203,956 $ 63,378 $ 217,595 $ $ $ $ $ $ Human Resources 31,277 50,070 37,470 35,990 33,715 39,257 Administrative Svcs. 45,197 67,350 78,552 38,576 40,336 41,627 Community Services 841,839 1,123, , , , ,256 Information Technology 184, , , , , ,054 Management Services 157, , , , , ,483 Office of the City Clerk 39,963 64,944 56,173 46,195 52,564 44,311 Development Services 39,442 89,789 54,670 45,709 42,053 45,828 Community Develop. 237, , , , , ,340 Engineering 168, , , , , ,710 Public Works 143, , , , , ,065 Police Department 2,917,236 4,179,741 3,331,337 3,182,808 3,086,428 3,336,789 Monthly Actuals $ 4,849,749 $ 7,202,524 $ 5,552,200 $ 5,514,872 $ 5,302,626 $ 5,443,315 FY Actuals 4,849,749 12,052,273 17,604,473 23,119,345 28,421,971 33,865,286 FY Budget 6,149,985 12,299,971 18,449,956 24,599,941 30,749,926 36,899,912 43,049,897 49,199,882 55,349,867 61,499,853 67,649,838 73,799,823 FY Actuals 5,371,553 10,634,627 17,755,156 22,878,415 28,354,820 33,973,725 39,744,391 44,768,947 52,103,511 57,471,051 63,021,824 68,935,670 73,799,823 69,149,917 Monthly Actuals FY Actuals FY Actuals FY Average Adopted FY Budget FY Actuals Page 9

12 Investment Report City of Fontana December 31, 2012 Page 10

13 Contents Summary of Investment Policy Summary of Cash and Investments Portfolio Analysis Interest Rate Comparison Actual to Model Comparison Pooled Investments Bond Investments Page 11

14 Summary of Investment Policy Adopted by City Council January 24, 2012 Objectives: Safety, Liquidity & Yield Benchmark: TwoYear Treasury Note Target Duration: Two years 10% of Portfolio in shortterm investments Requires diversification of maturities Maximum maturity of five years Page 12

15 Summary of Cash and Investments Pooled Bond Investments Funds Other Total Money Market Funds $ 118,018, $ 36,344, $ $ 154,362, Bankers Acceptances 0.00 Government Agency Issues 25,259, ,259, MediumTerm Notes 20,027, ,027, Local Agency Investment Fund (LAIF) 27,381, ,381, Investment Agreements 3,205, ,205, Fiscal Agent Cash Accounts Bank of America General Checking 49,825, ,825, Deferred Compensation Funds 18,070, ,070, Escrow Accounts 1, , Petty Cash/Self Insurance 307, , $ 190,685, $ 39,549, $ 68,204, $ 298,440, This report reflects all cash and investments managed by the Management Services Department and is in conformity with the Investment Policy of the City of Fontana as approved by the City Council on January 24, The investment program herein shown provides sufficient cash flow liquidity to meet City liabilities for the next six months. Page 13

16 Portfolio Analysis INVESTMENT COMPOSITION: Original cost of investments held $190,685, Adjusted book value of investments held $190,563, Market value of investments held $191,274, Unrealized gain (loss) amount $710, Unrealized gain (loss) percentage 0.37% Weighted average portfolio life (final maturity) 0.51 years Weighted average portfolio life (call dates) 0.19 years RETURN ON INVESTMENTS: (July 1, 2012 to December 31, 2012) MonthtoDate YeartoDate Total investment earnings $53, $1,171, Total realized gains (losses) on sales/calls $0.00 $8, Total amortized premium/discount ($5,793.00) ($34,369.90) Weighted average portfolio balance $155,710, $179,715, Total return on investments annualized 0.36% 1.27% $250,000,000 $225,000,000 $200,000,000 $175,000,000 Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 COMPARATIVE MARKET RATES: December 31, Month Average ThreeMonth Treasury Bills 0.06% SixMonth Treasury Bills 0.10% OneYear Treasury Bills 0.16% TwoYear Treasury Notes 0.26% 0.27% FiveYear Treasury Notes 0.81% LAIF 0.33% Book Value Market Value Money Market Mutual Funds 61.89% Government Agency Issues 13.25% Medium Term Notes 10.50% Local Agency Investment Fund (LAIF) 14.36% % HISTORICAL RATES OF RETURN: VARIANCE: 0.10% 1.00% City of Fontana Fiscal Year 2003/ % To evaluate the performance of the City's portfolio, the Statement of Fiscal Year 2004/ % Investment Policy has established the twoyear treasury note as the Fiscal Year 2005/ % benchmark for comparison purposes. It is expected that yields on Fiscal Year 2006/ % City investments will regularly meet or exceed the benchmark; however, a Fiscal Year 2007/ % variance of.50% (50 basis points) plus or minus is considered reasonable Fiscal Year 2008/ % by the Investment Review Committee for evaluation purposes. Fiscal Year 2009/ % Fiscal Year 2010/ % The City rate currently exceeds the Benchmark rate by Fiscal Year 2011/ % 100 basis points due to historically low treasury rates and Fiscal Year 2012/ % onetime gains from securities called. Page 14

17 Interest Rate Comparison January 2012 December Year USTN City Pool Difference 01/31/ % 2.17% +195 BPs 02/29/ % 2.07% +177 BPs /31/ % 2.01% +168 BPs Interest Rates Jan12 Feb12 Mar12 Apr12 May12 Jun12 Jul12 Aug12 Sep12 Oct12 Nov12 Dec12 City Pool Average City Pool Rate USTN Average 2Year USTN 04/30/ % 1.93% +160 BPs 05/31/ % 1.90% +164 BPs 06/30/ % 1.85% +155 BPs 07/31/ % 1.19% +98 BPs 08/31/ % 1.16% +92 BPs 09/30/ % 1.16% +93 BPs 10/31/ % 1.17% +87 BPs 11/30/ % 1.14% +89 BPs 12/31/ % 1.27% +101 BPs Average 0.27% 1.59% +132 BPs Page 15

18 Actual to Model Comparison INVESTMENT PROGRAM: The purpose of the investment program is to provide procedures which: 1) Adhere to the Statement of Investment Policy. 2) Prioritize safety and liquidity. 3) Determine risk and optimize return. 4) Provide for a system of due diligence in making investment decisions. A "Model" investment portfolio has been developed to provide the strategic framework for managing and reporting on the investment portfolio. This model provides a system of due diligence and directs the tactical theme for how and why securities are bought and sold. Liquidity Actual Model Variance Sector Actual Model Variance Cash 76.25% 5.00% 71.25% Cash 76.25% 10.00% 66.25% 01 Year 10.50% 5.00% 5.50% Treasury/Agency 13.25% 60.00% 46.75% Total 86.75% 10.00% 76.75% Med Term Notes 10.50% 30.00% 19.50% Fundamentals Actual Model Variance Duration Actual Model Variance Avg Coupon 3.02% 1.97% 1.05% Cash 75.94% 15.45% 60.49% Avg Maturity (Yrs) Year 10.67% 12.31% 1.64% Avg Maturity (Call) Years 7.88% 31.47% 23.59% Avg Quality Aa1 Aa1 23 Years 5.51% 18.89% 13.38% Purchase Yield 1.20% 0.28% 0.92% 34 Years 0.00% 11.25% 11.25% Effective Duration Years 0.00% 10.63% 10.63% (Duration measures the price volatility of the portfolio.) Avg Maturity Actual Model Variance Avg Maturity Actual Model Variance 01 Year 86.75% 10.00% 76.75% 01 Year 94.62% 10.00% 84.62% 12 Years 0.00% 22.50% 22.50% 12 Years 0.00% 22.50% 22.50% 23 Years 5.38% 22.50% 17.12% 23 Years 5.38% 22.50% 17.12% 34 Years 0.00% 22.50% 22.50% 34 Years 0.00% 22.50% 22.50% 45 Years 7.87% 22.50% 14.63% 45 Years 0.00% 22.50% 22.50% (Based on final maturity dates) (Based on call dates if market price is at a premium) Page 16

19 Pooled Investments Face Coupon Maturity Invest Invest Purchase Cost Purchase Estimated Amort Value CUSIP # Security Description Rate Date Rating Type Date Basis Yield Mkt Value Prem/Disc 27,381,174 Local Agency Investment Fund Varies NR LAIF Varies 27,381, Varies 27,414, ,018,100 BNY Dreyfus Cash Mgmt Fund Varies Aaa MM Varies 118,018, Varies 118,018, ,000, BAP3 New York Life 4.650% 05/09/13 Aaa MTN 06/09/08 10,027, % 10,184,800 (25,060) 10,000, CFN0 Protective Life 5.000% 05/15/13 A1 MTN 05/30/08 10,000, % 10,162, ,000, AZ54 Fed Natl Mtg Assn 2.150% 08/04/15 Aaa FNMA 06/15/11 10,259, % 10,449,500 (97,071) 15,000, G0HM8 Fed Natl Mtg Assn 1.200% 03/08/17 Aaa FNMA 03/08/12 15,000, % 15,044,850 0 Total Pooled Investments 190,685, ,274,519 (122,131) Market prices of securities are obtained from BNY Western Trust Company, A Subsidiary of The Bank of New York Company, Inc. Types of Investments: FFC Federal Farm Credit INVAGRMT Investment Agreement FHLB Federal Home Loan Bank LAIF Local Agency Investment Fund FHLMC Fed Home Loan Mortgage Corp MM Money Market Mutual Funds FNMA Federal National Mortgage Assn MTN Medium Term Note Page 17

20 Bond Investments Face Coupon Maturity Invest Invest Purchase Cost Yield to Estimated Amort Value Security Description Rate Date Rating Type Date Basis Maturity Mkt Value Prem/Disc Held By Fiscal Agent: 0 Cash Varies NR Varies 0.00 Varies ,134,069 First American Treasury MM Varies Aaa MM Varies 30,134, Varies 30,134, ,630,542 BNY Hamilton Treasury MM Varies Aaa MM Varies 2,630, Varies 2,630, ,076,171 Wells Fargo Treasury Plus MM Varies Aaa MM Varies 3,076, Varies 3,076, ,599 Dreyfus Treasury Cash Mgmt MM Varies Aaa MM Varies 362, Varies 362, US Bank MM Varies Aaa MM Varies Varies ,294 Wells Fargo Advantage Govt MM Varies Aaa MM Varies 25, Varies 25, ,403 Wachovia Bank, N.A % 02/29/16 A INVAGRMT 03/04/03 778, % 778, ,120 AIG MFL 5.470% 08/26/21 Aa1 INVAGRMT 01/09/01 914, % 914, ,512,535 Rabobank International 4.360% 10/01/33 Aaa INVAGRMT 09/07/05 1,512, % 1,512,535 0 Held By Management Services Department: (13,791) Cash Varies NR Varies (13,791.06) Varies (13,791) 0 116,107 Fidelity Money Market Fund Varies Aaa MM Varies 116, Varies 116,107 0 Total Bond Investments 39,536, ,536,156 0 Market prices of securities are obtained from the fiscal agent holding the investment. Types of Investments: FFC Federal Farm Credit INVAGRMT Investment Agreement FHLB Federal Home Loan Bank LAIF Local Agency Investment Fund FHLMC Fed Home Loan Mortgage Corp MM Money Market Mutual Funds FNMA Federal National Mortgage Assn MTN Medium Term Note Page 18

21 Liability Claims Status... Fund 106 Fiscal Year SelfInsurance Fund Status (Cash balances are based on daily estimates and are subject to change) Fund Balance Goal and Cost Assumptions Data Provided for December 31, 2012 Liability Projected Annual Costs Annual value of excess liability insurance $ 550,000 Other professional administrative costs 416,000 Annual claims value administered by risk Legal services 500, ,000 Miscellaneous Departmental Costs 12,000 Total Liability Projected Annual Costs $ 2,278,000 (1) Workers' Compensation Projected Annual Costs Annual value of excess liability insurance $ 100,000 Other professional administrative costs 302,000 Annual claims value administered by risk Legal services 700, ,000 Miscellaneous Departmental Costs 12,500 Total Workers' Compensation Projected Annual Costs $ 1,214,500 (1) Miscellaneous Services Projected Annual Costs Unemployment Insurance Expense $ 250,000 Risk Management is an important part of local government management with significant impact on public financial management. Risk management is interdisciplinary, involving finance, environmental management, public works, safety, transportation, parks, recreation, health, education, personnel, purchasing, and law. Risk management results in more effective use of funds that might otherwise be diverted to purchasing unnecessary or expensive insurance, replacing damaged property, or paying liability or workers' comp claims. Risk management identifies exposures that can be covered by means other than insuranceor that can be avoided completely. Risk management can lower expenditures by reducing the overall "costs of risk." Total Miscellaneous Services Projected Annual Costs $ 250,000 (1) Cash Reserves Claims Workers' Comp in reserve Risk Liability in reserve Miscellaneous reserves Risk cases CFD Litigation Total Cash Reserves Claims $ 3,367,284 1,884, ,000 Director HR/Risk Management $ 6,001,410 (2) Total Projected Annual Costs and Cash Reserves $ 9,743,910 YearEnd Cash Balance Forecast Fiscal Year 2012/2013 Available Total Budgeted Payment of Risk Liability Fund Balance Cash Budgeted Expenditures Extraordinary Surplus/(Deficit) July 1, 2012 Reserves (2) Revenues includes (1) from above Settlement Cash Balance $ 3,834,186 $ (6,001,410) $ 3,713,680 $ (3,970,070) $ $ (2,423,614) Page 19

22 Cash Balance and Cash Available... All funds... Detail Listing CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs June 30, 2010 June 30, 2011 June 30, 2012 December 31, 2012 CITY FUNDS: 101 General Fund $ 20,898,854 $ 19,761,346 $ 23,762,427 $ 4,715,162 OTHER FUNDS WITH DEFICIT CASH BALANCES: 245 Measure I Reimb (127,304) (2,021,489) (521,168) Total Other Funds With Deficit Cash Balances (127,304) (2,021,489) (521,168) GRANTS: 224 Police Seizure (22,822) 225 FSTOP (53,207) (155,401) 244 Prop IB (319,617) 321 Federal Law Enforcement Block Grant (397,756) (836,733) (61,063) (748,405) Reimb requested quarterly 322 State Cops AB3229 Grant (468,014) (477,821) (139,413) (212,794) Reimb requested quarterly 385 After School Programs (730,610) (1,221,846) (502,721) (602,920) Reimb requested quarterly Total Grant Funds With Deficit Cash Balances (3,374,210) (4,105,502) (1,757,612) (2,061,959) CFD/LMD/ASSESSMENT DISTRICT FUNDS: 650 CFD#2 Village of Heritage (26,253) (26,253) (26,253) (26,253) Fiscal Agent draw pending Total District Funds With Deficit Balances (118,575) (119,861) (110,457) (26,253) TOTAL DEFICIT CASH FUNDS (3,492,785) (4,352,667) (3,889,558) (2,609,380) GENERAL FUND CASH AVAILABLE $ 17,406,069 $ 15,408,679 $ 19,872,869 $ 2,105,782 OTHER GENERAL FUNDS: 102 Equipment Replacement $ 3,628,571 $ 3,130,953 $ 2,571,968 $ 2,572, City Facility 1,306,722 1,201,792 1,702,418 3,596, OES 107,122 96,387 46,799 30, KFON 189, , , , Selfinsurance other 6,859,705 4,772,298 3,656,152 2,753, Retirees Medical Benefits 6,199,854 8,217,692 10,787,633 14,200, Supplemental Retirement Plan 119,200 96,395 71,828 59, General Fund Operating Project 823, ,329 87,434 85, Storm Water Compliance Fund 68, , , ,582 TOTAL OTHER FUNDS 19,363,828 18,587,325 19,558,479 24,014,594 INTERNAL SERVICE FUNDS: 751 Fleet Operations 2,040,156 2,235,468 2,206,155 2,269,276 GENERAL FUND CASH AVAILABLE WITH OTHER GENERAL FUNDS $ 38,810,053 $ 36,231,473 $ 41,637,503 $ 28,389,652 Page 20

23 Cash Balance and Cash Available... All funds... Detail Listing (Continued) CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs June 30, 2010 June 30, 2011 June 30, 2012 December 31, 2012 OTHER CITY FUNDS: Estimated 201 Municipal Services Fiscal Impact 17,722,338 18,044,845 18,335,705 17,480, AB2928 State Traffic Congestion Relief 2,940,924 2,069, , , Crime Prevention Seizure 120, , , , Federal Seizure 546, , , , AQMD 873, , , , Traffic Congestion Relief 8,263,940 7,088,937 6,080,998 5,630, Traffic Safety 1,999,290 2,272,164 2,233,353 2,131, Measure I Local 1,552,091 3,604,984 4,322, Gas Tax 610,569 1,662,742 1,770,376 1,163, Solid Waste Mitigation 7,420,951 8,476,003 5,156,606 4,312, Grants (Public Safety, Parks, etc.) (4,043,909) (1,222,025) (3,164,877) 2,262, Economic Stimulus (29,028) (1,569,103) (1,001,208) 3, Housing/Community Development Block Grants 919,672 1,839, , Home Program 137, , , , Capital Reinvestment 22,816,391 22,583,276 20,787,568 16,415, Capital Improvement Program 361, , , , Future Capital Projects 1,534, San Sevaine Flood Control 5,359, , , , Upper Etiwanda Flood Control 464,673 55,515 54,221 42, Storm Drainage 18,344,698 18,421,871 18,460,585 18,064, Sewer Expansion 5,861,603 5,277,429 5,440,709 5,500, Traffic Mitigation 11,734,378 6,888,549 9,007,176 11,223, Fire Assessment 1,280, , ,848 1,179, General Government Capital 1,529,036 1,185,530 1,093,712 1,338, Landscape Improvements 1,817, ,561 1,269,562 1,392, Library Capital 73, , , , Parks Development 1,065,564 1,018,600 1,030, , Police Capital Improvements 1,603,470 1,243,010 1,091,899 1,045, Underground Utilities 342, , , , Affordable Housing Trust 55, Sewer Maintenance & Operations 7,710,857 8,100,783 7,294,543 7,751, Sewer Hookup Deposits 563, , , , Sewer Capital Projects 721,415 55, , , Sewer Replacement 12,203,165 13,007,987 14,100,076 13,154, Water Operations 714, , , , Refundable Deposits 2,793,277 2,213,147 2,086,378 3,056,788 TOTAL OTHER CITY FUNDS $ 135,153,160 $ 126,708,041 $ 122,854,312 $ 125,149,199 Page 21

24 Cash Balance and Cash Available... All funds... Detail Listing (Continued) CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs June 30, 2010 June 30, 2011 June 30, 2012 December 31, 2012 CFD/LMD/ASSESSMENT DISTRICT FUNDS: Estimated 401 Landscape Maint Dist #1 $ 2,594,731 $ 2,570,988 $ 2,593,691 $ 2,502, Landscape Maint Dist #2 Heritage 2,377,658 2,265,655 1,527,113 1,055, Landscape Maint Dist #31 Empire Center 126, , , ,246 General Fund subsidy $272, Landscape Maint Dist #3 Hunter's Ridge 1,547,364 1,786,316 1,980,297 1,984, Lighting District #3 Hunter's Ridge 61,895 59,640 63,825 53, CFD #1 Southridge 4,904,931 5,738,362 6,037,994 5,594, CFD #6 The Landings 1,892,987 2,057,978 2,247,865 2,263, CFD #61 Stratham 600, , , , CFD #62 North Morningside 236, , , , CFD #63A Bellgrove II 323, , , , CFD #7 County Club Estates 251, , , , CFD #8 Presley Development 933,849 1,003,056 1,050,576 1,043, CFD #9M Morningside 558, , , , CFD #10M Jurupa Industrial Center 128, , , , CFD #12 Sierra Lakes 2,383,610 2,464,137 2,602,514 2,477, CFD #13M Summit Heights 1,055,804 1,236,684 1,371,716 1,346, CFD #14M Sycamore Hills 636, , , , CFD #15M Silver Ridge 429, , , , CFD #16M Ventana Pointe 166, , , , CFD #18M Badiola Homes 15,175 17,564 19,807 20, CFD #20M Cottages 1 165, , , , CFD #21M Western Division 49,648 69,626 93, , CFD #23 CDS Homes 23,991 32,466 32,606 31, CFD #24M 84,778 98, , , CFD #25M 224, , , , CFD #27M 98,129 99, ,262 92, CFD #28M 408, , , , CFD #29M 100, , , , CFD #30M 437, , , , CFD #34 Empire Detention Basin 72,680 88, , , CFD #33M Empire Lighting District 69,000 91, , , CFD #31M 344, , , , CFD #32M 44,208 50,874 55,664 57, CFD #35M 1,612,796 1,953,166 2,053,906 2,058, CFD #36M 60,390 67,868 68,933 67, CFD #38M 413, , , , CFD #37 Montelago 245, , , ,532 SUBTOTAL CFD/LMD/AD FUNDS $ 25,680,749 $ 27,959,017 $ 28,627,952 $ 27,367,047 Page 22

25 Cash Balance and Cash Available... All funds... Detail Listing (Continued) CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs June 30, 2010 June 30, 2011 June 30, 2012 December 31, 2012 Estimated CFD/LMD/ASSESSMENT DISTRICT FUNDS: 439 CFD #39M 55,898 59,741 61,202 63, CFD #40M 22,342 26,019 28,265 25, CFD #41M 57,506 69,330 77,082 81, CFD #42M 151, , , , CFD #44M 24,961 31,719 33,583 33, CFD #45M 193, , , , CFD #46M 142, , , , CFD #47M 16,505 20,971 21,727 21, CFD #48M 179, , , , CFD #49M 25,193 28,047 28,507 28, CFD #50M 26,355 33,131 55,562 57, CFD #51M 114, , , , CFD #53M 17,761 22,351 26,846 28, CFD #54M 28,545 40,270 45,346 48, CFD #55M 13,363 19,057 22,269 24, CFD #56M 32,888 39, CFD #57M 33,694 38,888 43,586 44, CFD #58M 5,745 6,395 6,713 7, CFD #59M 4,004 4,897 5,799 6, CFD #60M 30,565 38,222 44,242 47, CFD #61M 94, , , , CFD #62M 11,152 11,350 11,536 14, CFD #63M 86, , , , CFD #64M 4,737 9,564 14,699 17, CFD #65M 14,136 36,474 59,470 68, CFD #67M 42,180 76,201 92, CFD #68M 12, CFD #67M 17, CFD #31 Citrus Heights North 180, , ,608 95, CFD #37 Montelago 23,396 23,967 24,389 23, CFD #2 Heritage Debt Service 1,530, CFD #3 Hunter's Ridge Debt Service , CFD #4 Walnut Village Reserve 64,424 51,455 51,460 51, CFD #4 Walnut Village Debt Service 51,445 76,705 63,459 50, CFD #7 County Club Estates 89, CFD #11 Heritage 336, CFD #12 Sierra Lakes 597, CFD #22 1,136, CFD #31 Citrus Heights North 557, CFD #37 Montelago 111,466 SUBTOTAL CFD/LMD/AD FUNDS 1,673,839 2,053,217 2,367,419 7,441,008 TOTAL CFD/LMD/AD FUNDS $ 27,354,588 $ 30,012,234 $ 30,995,371 $ 34,808,055 TOTAL CITY FUNDS $ 201,317,801 $ 192,951,747 $ 195,487,186 $ 188,346,906 Page 23

26 Cash Balance and Cash Available... All funds... Detail Listing (Continued) CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs June 30, 2010 June 30, 2011 June 30, 2012 December 31, 2012 SUCCESSOR AGENCY TO THE FONTANA REDEVELOPMENT AGENCY (FRA), FONTANA PUBLIC FINANCE AUTHORITY, AND FONTANA HOUSING AUTHORITY FUNDS: Estimated FONTANA HOUSING AUTHORITY: 297 Low and Moderate Income Housing Fund $ $ $ $ 5,996, Fontana Housing Authority 7,391,160 2,733,240 2,204,504 1,882,417 Total Low/Mod Housing Funds 7,391,160 2,733,240 2,204,504 7,878,824 FONTANA COMMUNITY FOUNDATION FUND: 499 Fontana Community Foundation $ 60,217 $ 92,630 $ 110,128 $ 111,977 FONTANA FIRE DISTRICT: 497 Fontana Fire District $ 792,152 $ (597,652) $ (3,548,413) $ 2,650, FFD CFD ,139,939 1,322,680 1,686,414 1,852, Fontana Capital Project 2,815,622 3,525,373 4,073,702 8,178,145 Total Fontana Fire District Funds 4,747,713 4,250,401 2,211,703 12,681,125 SUCCESSOR AGENCY TO THE FONTANA REDEVELOPMENT AGENCY: 190 FRA Administration $ 165,999 $ 124,965 $ 27,243,194 $ 20,371, FRA Low/Mod 9,364,396 16,199,074 (462,219) 7,243, FRA Downtown Debt Service 831, ,253 1,023, , FRA Jurupa Hills Debt Service 242, ,532 (4,292,471) (1,837,055) 593 FRA No Fontana Debt Service 20,713,342 17,859,818 9,651,083 3,699, FRA Sierra Corridor Debt Svc 5,446,646 5,213,678 4,692,527 1,399, FRA SWIP Debt Service 4,871,757 (299,911) 2,589,509 (3,112,232) 691 FRA Downtown Project 607, ,033 (811,829) (921,058) 692 FRA Jurupa Hills Project (25,665) (43,727) (41,574) (123,642) 693 FRA No Fontana Project 3,873,017 (1,162,407) 9,690,893 3,935, FRA Sierra Corridor Project 1,167,544 6,174,354 2,255, , FRA SWIP Project 241,571 5,354,539 2,139, ,671 Total Project/Debt Service Funds 47,499,003 51,168,200 53,678,104 32,369,687 TOTAL OTHER AGENCIES FUNDS $ 59,864,092 $ 58,369,437 $ 85,447,633 $ 53,041,613 TOTAL CITY AND OTHER AGENCIES FUNDS $ 261,181,893 $ 251,321,184 $ 280,934,819 $ 241,388,519 ERAF: FY2015 $14,835,642 FY2016 $2,243,605 FY2017 $3,000,000 Page 24

27 Amounts Due To/From City/FRA Funds and Approved Cash Flow Advances... Detail Listing Principal Unpaid Interest Total Due To/From Balances Balances Balances December 31, 2012 December 31, 2012 December 31, 2012 AMOUNTS DUE TO GENERAL FUND FROM OTHER FUNDS: 403 Landscape District #31 Empire Center 272, ,100 Noninterest bearing advance TOTAL AMOUNTS DUE TO GENERAL FUND FROM OTHER FUNDS $ 272,100 $ $ 272,100 AMOUNTS DUE TO GENERAL FUND FROM FRA FUNDS: 593 FRA/North Fontana Debt Service (Jr. Lien Bonds) 31,979,034 31,979, % interest 691 FRA/Downtown Debt Service (Administrative Expenses Loan) 787, ,800 1,517, % interest 693 FRA/North Fontana Capital Project (Ventana Land) 41,713,080 41,713, % interest TOTAL AMOUNTS DUE TO GENERAL FUND FROM FRA FUNDS $ 74,479,952 $ 729,800 $ 75,209,752 TOTAL AMOUNTS DUE TO GENERAL FUND FROM OTHER FUNDS AND FRA FUNDS $ 74,752,052 $ 729,800 $ 75,481,852 AMOUNTS DUE FROM MEASURE I AND CIRCULATION MITIGATION: 603 Capital Projects/Measure I (245) 29,451,489 29,451,489 Noninterest bearing advance 603 Capital Projects/Circulation Mitigation Fund (630) 9,016,483 9,016,483 Noninterest bearing advance TOTAL AMOUNTS DUE FOR SANBAG PROJECTS $ 38,467,972 $ $ 38,467,972 AMOUNTS DUE TO FUTURE CAPITAL PROJECTS FOR DIF ADVANCEMENT: 603 Capital Projects/Circulation Mitigation Fund (630) 5,090,148 5,090,148 Noninterest bearing advance TOTAL AMOUNTS DUE FOR DIF ADVANCEMENT $ 5,090,148 $ $ 5,090,148 AMOUNTS DUE TO OTHER CITY FUNDS FROM FRA FUNDS: 595 FRAERAF payment due to Housing Authority # 297 $ 20,079,247 $ 20,079,247 Noninterest bearing advance 592 FRA/Jurupa Hills Debt Service due to Sewer Capital Fund #702 3,305,829 5,237,923 8,543, % interest 693 FRA/North Fontana Capital Project (Ventana Land) due to MSIF #201 5,663,080 5,663, % interest TOTAL AMOUNTS DUE TO OTHER CITY FUNDS FROM FRA FUNDS $ 8,968,909 $ 5,237,923 $ 14,206,832 AMOUNTS DUE TO/FROM BETWEEN FRA FUNDS: 691 FRA/Downtown Capital Project (Administrative Expenses Loan) due to SWIP Capital Fund #695 $ 1,140,000 $ 1,110,417 $ 2,250, % interest 692 FRA/Jurupa Hills Capital Project (Administrative Expenses Loan) due to SWIP Capital Fund #695 $ 1,164,824 $ 1,536,401 $ 2,701, % interest TOTAL AMOUNTS DUE TO BETWEEN FROM FRA FUNDS $ 40,321,889 $ 13,122,664 $ 53,444,553 Page 25

28 Factors Indicating the City s Economic Growth: Business Licenses: New businesses are those that first applied for a business license in that fiscal year. There were 9,220 active businesses in FY As of June 30, 2012 there were 8,533 active business licenses in the City. Businesses are recorded as renewals in the subsequent year. During the month of December 2012, 79 new business licenses were issued, primarily to ContractorSpecialty (24), ContractorGeneral (12) & Retail (24). In addition to these 79 the City received 18 other business license applications that are pending approval. As of December 31, 2012, there are 8,472 active business licenses representing a decrease of 61 since June 30, Business License accounts continue to be audited on a continuous basis and any accounts on delinquent status are removed from the Active status. "New" BL per Month Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Other Categories Contractor Specialty Contractor General Retail FYTD Total "New" BL FY1112 New BL per month Business Type Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Retail Contractor General Contractor Specialty Other Categories Total "New" BL per Month FYTD Total "New" BL FY1112 New BL per month Current FY Total Active BL 8,487 8,458 8,392 8,438 8,494 8,472 1,470 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Total FY Active BL New Sewer HookUps: New sewer hookups indicate that new construction is ready for occupancy. A large number of residential housing hookups follow a large number of previously issued building permits. In December 2012, there were 9 new residential hookups and 1 commercial/industrial hookups. Number Issued New Sewer HookUps Fiscal Year FY HookUps FY Average FY HookUps FY Residential Permits (SFD) FY Totals Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY Residential FY Comm. & Ind. FY Totals FY Totals FY Totals FY Average FY Res. Permits (SFD) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY Comm. & Ind FY Residential FY Totals FY Comm. & Ind FY Residential FY Totals Page 26

29 Capital Reinvestment Fund #601 Fund Description: The Capital Reinvestment Fund was established in May 1998 to separate General Fund allocations for capital projects from operating funds. Its mission is to implement the City Council goal to invest 10% of the annual General Fund appropriations into discretionary infrastructure projects as defined in the SevenYear Capital Improvement Program. Revenue Source: The Capital Reinvestment Fund s main source of revenue is the General Fund. In the past 10 fiscal years, Capital Projects actual expenditures have totaled $169,266,405 through June 30, Job Number Description Capital Budget Actuals Encumbrances Remaining Budget Notes Police Department Police Upgrade/Expansion 12,621,234 6,294,936 3,469,001 2,857,297 Development Services Engineering LAMPS Development 1,300,000 1,021, , Valley Blvd Transition District 300, , ROW Surplus Property 20,000 10, , I10/Citrus Interchange 1,177,544 1,177, Sawtooth Project 1,962,319 1,901,923 60, Citrus: Jurupa to Slover 162, ,230 10, Civic Center Parking Structure 2,760,357 2,732,419 11,328 16, Fire Station #71 4,052,676 4,052, Harvey/Cypress Ped Route 100,000 19,527 1,050 79, Marygld/Lombrdy Drainage 50,000 10,642 2,100 37, Sierra at Metrolink Crossing 98,180 8,133 90, I15 /Duncan CynContribution 3,530,112 1,075, ,813 1,703,766 Administrative Services Restaurant Revitalization 168, ,966 3, Charley's Parking Ph II 290, ,182 10, Civic Auditorium Reuse 185,292 36, , Fredson RV Auto Center 600,000 1, ,204 Public Works As of December 31, Pavement Rehabilitation 20,396,729 19,160, , , Water Quality Management 10,000 4,890 5, San Bernardino Ave Paving 2 Party 8,440,800 5,995,498 64,024 2,381, Martin Tudor Park Redesign 1,364,690 1,309,569 13,250 41, Recycled Water Project 500, ,349 10,651 92, Animal Shelter Design 15,000 15, Wayfinding Design Svcs 287, ,910 8, Vulcan Water Project 8,000,000 8,000, Vet Center 37,000 35, ,309 Total: $ 68,430,186 $ 46,121,404 $ 5,019,990 $ 17,288,792 Project Page 27

30 Grants and Rebates Grants Awarded $2,584,754 $984,880 $121,600 $20,000 $2,407 $2,407 $80,384 $4,939 $4,939 $956,499 $1,000,000 $1,219,894 $44,080 $59,358 The City is aggressively pursuing Grant money as a source to fund projects throughout the City. The purpose of this graph and related information is to report on a monthly and year to date basis the status of grants and rebates that have been awarded during the fiscal year 2011/2012, as well as applications that have been submitted. $1,000,000 $750,000 Grant & Rebate Dollars Awarded & Applications Submitted By Department Fiscal Year 2012/2013 Grants Awarded Grants Submitted Rebates Awarded Rebates Submitted $500,000 $250,000 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Grants Submitted Rebate/Other Awarded Rebate/Other Submitted Departments Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun YTD Fontana Community Foundation City Administration Human Resources Information Technology Public Works 56,499 $56,499 Police 131, ,600 60,384 $313,528 AdmSvc/EconDev/Housing 2,365,448 $2,365,448 Redevelopment Engineering 900,000 $900,000 Development Services Fontana Fire District 82,762 44,080 $126,842 *Community Services 5,000 20,000 $25,000 Total $2,584,754 $121,600 $80,384 $956,499 $44,080 $3,787,317 Fontana Community Foundation City Administration Human Resources Information Technology Public Works 1,000,000 52,002 $1,052,002 Police 7,356 $7,356 Admin ServicesHousing Redevelopment Engineering 900,000 $900,000 Development Services Fontana Fire District 84,880 $84,880 Community Services 20,000 1,219,894 $1,239,894 Total $984,880 $20,000 $1,000,000 $1,219,894 $59,358 $3,284,132 Police 2,407 4,939 $7,346 AdmSvc/EconDev/Housing Redevelopment Public Works Engineering Community Services* Total $2,407 $4,939 $7,346 Police 2,407 4,939 $7,346 AdmSvc/EconDev/Housing Redevelopment Public Works Engineering Community Services Total $2,407 $4,939 $7,346 * Community Services is expected to receive reimbursements of $3,306,870 for the fiscal year from the Fontana Unified School District Prop. 49 After School Education and Safety (ASES) program. Note: Amounts above include grants awarded in this Fiscal Year. These figures do not include any carryover funds or multiyear grants awarded in prior fiscal years. Page 28

31 Grant Detail Grants Awarded Grant Name Funding Source Fund # Date Amount Human Resources Public Works Oil Payment Program FY (OPP3) State 301 OCTOBER 2012 $56,499 Police CDFA 2012 Inedible Kitchen Grease (IKG) Targeted Enforcement Grant State 301 JULY 2012 $51,544 OTS FY 12/13 STEP Grant (Selective Traffic Enforcement Program) O.T. State 225 JULY 2012 $80,000 OTS Sobriety Checkpoint Grant Program FY1213 UC Berkley Safe TREC State 301 AUGUST 2012 $121,600 JAG 2012 Edward Byrne Memorial Grant (Patrol Personnel) Federal 321 SEPTEMBER 2012 $60,384 Administrative Services/Economic Development/Housing Community Development Block Grant (CDBG) Program 12/13 Federal 362 JULY 2012 $1,769,139 HOME Investment Partnerships Program (HOME) 12/13 Federal 363 JULY 2012 $379,525 Emergency Solutions Grant (HESG) Program 12/13 Federal 362 JULY 2012 $165,289 Emergency Solutions Grant (HESG) Program 11/12 Federal 362 JULY 2012 $51,495 Engineering Highway Safety Improvement Program (HSIP) Cycle 5 Federal 301 OCTOBER 2012 $900,000 Development Services Fontana Fire District AFG Fire Prevention and Safety FY 2011 Federal JULY 2012 $82,762 DHS/FEMA AFG FY 2012 Equipment/Facility Modification Federal 301 DECEMBER 2012 $44,080 Community Services Kaiser Community Benefit Grant Little Sprouts in MotionParent Component Foundation 101 JULY 2012 $5,000 CA Healthy Cities & Communities Fontana Farmers' Market Program 2012 Foundation 101 SEPTEMBER 2012 $20,000 Grant Applications Submitted Fontana Community Foundation Total through June 2013 $3,787,317 Human Resources Public Works SAWPA/Storm Water Flood Management Grant Vulcan Pit & Aquifer Project State 301 OCTOBER 2012 $1,000,000 CalRecycle Beverage Container Collection Program FY 12/13 State 301 DECEMBER 2012 $52,002 Police ABC Law Enforcement Mini GrantMinor Decoy & Shoulder Tap State 301 DECEMBER 2012 $7,356 Administrative Services/Economic Development/Housing Engineering Highway Safety Improvement Program (HSIP) Cycle 5 Federal 301 JULY 2012 $900,000 AWARDED Development Services Fontana Fire District DHS/FEMA AFG FY 2012 Equipment/Facility Modification Federal 301 JULY 2012 $84,880 AWARDED Community Services CA Healthy Cities & Communities Fontana Farmers' Market Program 2012 Foundation 101 AUGUST 2012 $20,000 AWARDED Artplace America Miller Amphitheater Foundation 301 NOVEMBER 2012 $500,000 USDA Network for Healthy CA San Bernardino County SNAPED 12/13 Federal 301 NOVEMBER 2012 $193,394 21st Century Community Learning Center (Cohort 8) State 101 NOVEMBER 2012 $526,500 Total through June 2013 $3,284,132 Page 29

32 Rebates, Donations & other Awards Detail Awarded Name Police Funding Source Fund # Date Cash Amount Value Amount National Night Out 2012Multiple Donors 101 AUGUST 2012 $377 National Night Out 2012Target 101 AUGUST 2012 $1,260 National Night Out 2012Gold Coast Hotel Las Vegas 101 AUGUST 2012 $120 National Night Out 2012Four Queens Hotel Las Vegas 101 AUGUST 2012 $150 National Night Out 2012SouthPoint Hotel Las Vegas 101 AUGUST 2012 $300 National Night Out 2012Raging Waters 101 AUGUST 2012 $100 National Night Out 2012Mission Foods 101 AUGUST 2012 $100 Safety and Preparedness FairMultiple donors under $ SEPTEMBER 2012 $240 Safety and Preparedness Fair Target Stores 101 SEPTEMBER 2012 $2,500 Safety and Preparedness FairLegoland 101 SEPTEMBER 2012 $195 Safety and Preparedness FairStater Bros 101 SEPTEMBER 2012 $100 Safety and Preparedness FairOntario Reign Hockey/Citizen's Bank 101 SEPTEMBER 2012 $100 Safety and Preparedness FairMedival Times 101 SEPTEMBER 2012 $120 Safety and Preparedness FairMagic Mountain Theme Parks 101 SEPTEMBER 2012 $122 Safety and Preparedness FairBMI 101 SEPTEMBER 2012 $140 Safety and Preparedness FairCostco 101 SEPTEMBER 2012 $250 Safety and Preparedness FairO.E.S. 101 SEPTEMBER 2012 $100 Volunteer Appreciation PicnicMultiple donors under $ SEPTEMBER 2012 $225 Volunteer Appreciation PicnicCenter Stage 101 SEPTEMBER 2012 $100 Volunteer Appreciation PicnicLakers 101 SEPTEMBER 2012 $205 Volunteer Appreciation PicnicTarget South EndFrank 101 SEPTEMBER 2012 $100 Volunteer Appreciation PicnicKiwanis 101 SEPTEMBER 2012 $150 Volunteer Appreciation PicnicSea World 101 SEPTEMBER 2012 $292 Administrative Services/Economic Development/Housing Redevelopment Engineering Community Services Total through June 2013 $2,650 $4,696 Applications Submitted Police National Night Out 2012Multiple Donors 101 AUGUST 2012 $377 National Night Out 2012Target 101 AUGUST 2012 $1,260 National Night Out 2012Gold Coast Hotel Las Vegas 101 AUGUST 2012 $120 National Night Out 2012Four Queens Hotel Las Vegas 101 AUGUST 2012 $150 National Night Out 2012SouthPoint Hotel Las Vegas 101 AUGUST 2012 $300 National Night Out 2012Raging Waters 101 AUGUST 2012 $100 National Night Out 2012Mission Foods 101 AUGUST 2012 $100 Safety and Preparedness FairMultiple donors under $ SEPTEMBER 2012 $240 Safety and Preparedness Fair Target Stores 101 SEPTEMBER 2012 $2,500 Safety and Preparedness FairLegoland 101 SEPTEMBER 2012 $195 Safety and Preparedness FairStater Bros 101 SEPTEMBER 2012 $100 Safety and Preparedness FairOntario Reign Hockey/Citizen's Bank 101 SEPTEMBER 2012 $100 Safety and Preparedness FairMedival Times 101 SEPTEMBER 2012 $120 Safety and Preparedness FairMagic Mountain Theme Parks 101 SEPTEMBER 2012 $122 Safety and Preparedness FairBMI 101 SEPTEMBER 2012 $140 Safety and Preparedness FairCostco 101 SEPTEMBER 2012 $250 Safety and Preparedness FairO.E.S. 101 SEPTEMBER 2012 $100 Volunteer Appreciation PicnicMultiple donors under $ SEPTEMBER 2012 $225 Volunteer Appreciation PicnicCenter Stage 101 SEPTEMBER 2012 $100 Volunteer Appreciation PicnicLakers 101 SEPTEMBER 2012 $205 Volunteer Appreciation PicnicTarget South EndFrank 101 SEPTEMBER 2012 $100 Volunteer Appreciation PicnicKiwanis 101 SEPTEMBER 2012 $150 Volunteer Appreciation PicnicSea World 101 SEPTEMBER 2012 $292 Administrative Services/Economic Development/Housing Redevelopment Engineering Community Services Total through June 2013 $2,650 $4,696 Page 30

33 Development Services Organization Customer Service Quality Assurance Each month the Development Services Organization sends 90 surveys to a random sampling of customers. There were 55 survey cards received in November/December. The surveys request a rating of the level of customer assistance that was received. A rating of 1 is below expectations. A rating of 5 is above expectations. The survey also invites the customer to comment on the service that was received. The following charts summarize the responses received. Survey Rating Survey Rating SEPTEMBER 2012 (17 surveys returned) Surveys Returned Survey Rating NOVEMBER/DECEMBER 2012 Current (5 surveys returned) OCTOBER 2012 (25 surveys returned) Surveys Returned The Development Services front counter staff assisted 1,881 customers in November/December which equates to 67 customers per day Surveys Returned Page 31

34 INTERCHANGE PROJECTS As of the Work this Total Work % Completed As of the Work this Total Work % Completed 30th of month Completed Construction Budget 30th of month Completed Construction Budget FY 08/09 $ $ 77, % 0.80% FY 08/09 $ 1,976,968 $ 1,976, % 7.0% FY 09/ , % 0.80% FY 09/10 583,862 2,560, % 9.1% FY 10/11 386, , % 4.81% FY 10/11 1,971,967 4,532, % 16.0% FY 11/12 33, , % 5.15% FY 11/12 1,193,606 5,726, % 20.3% FY 12/13 FY 12/13 July (6,769) * 490, % 5.08% July 2,567 5,728, % 20.3% August 11, , % 5.20% August 221,760 5,950, % 21.1% September 2, , % 5.22% September 14,222 5,964, % 21.1% October 38, , % 5.63% October 90,238 6,055, % 21.4% November 2, , % 5.65% November 256,712 6,311, % 22.3% December 2, , % 5.68% December 1,234,879 7,546, % 26.7% January February March April May June I10/CHERRY INTERCHANGE Budgeted Funding Sources: Construction Cost: As of the Work this Total Work % Completed 601 Capital Reinvestment $ 38,000 Administrative $ 17,000 30th of month Completed Construction Budget Budgeted Funding Sources: Construction Cost: 630 Circulation Mitigation 6,016,000 Environmental FY 05/06 $ $ 432, % 1.5% 244 Prop 1B $ 13,972,000 Administrative 695 SWIP Capital Projects 3,600,000 Land Acquisition/ROW 1,988,000 FY 06/07 16, , % 1.6% 601 Capital Reinvestmen 3,530,000 Environmental Design 50,000 FY 07/08 740,331 1,189, % 4.2% 622 Storm Drain 4,389,000 Land Acquisition/ROW Construction 7,599,000 FY 08/09 1,247,909 2,437, % 8.5% 630 Circulation Mitigation 1,240,000 Design Utilities FY 09/10 3,560,974 5,998, % 21.0% 693 North Fontana Cap P 5,128,000 Construction Other Costs (CAP ACQ) FY 10/11 2,189,807 8,187, % 28.7% Utilities FY 11/12 2,675,687 10,863, % 38.0% Other Costs (CAP ACQ) Total Funding Sources $ 9,654,000 Total Construction $ 9,654,000 FY 12/13 January February March July 652,891 11,516, % 40.3% Total Funding Sources $ 28,259,000 Total Construction August 30,646 11,547, % 40.4% September 49,274 11,596, % 40.6% October 1,800,677 13,397, % 46.9% November 7,187 13,404, % 46.9% December 110,317 13,514, % 47.3% January February March April May June Budgeted Funding Sources: Construction Cost: 242 Measure I $ 700,000 Administrative $ 2,760, Measure I Nexus 2,957,000 Environmental 281 Gas Tax (State) 860,000 Land Acquisition/ROW 5,400, Grants 3,238,000 Design 4,934, Transp Enhancement Construction 14,540, Capital Reinvestment 1,177,000 Utilities 920, Circulation Mitigation 18,155,000 Other Costs (CAP ACQ) 695 SWIP Capital Projects 1,465,000 Total Funding Sources $ 28,553,000 Total Construction $ 28,553,000 April May June I15/DUNCAN CANYON I10/Cherry Inception to date Expenditures I15/Duncan Canyon Inception to date Expenditures Estimated Completion August 2014 Estimated Completion June 2014 Project currently in the Design Phase Project currently in the ROW Acquisition Phase I10/CITRUS INTERCHANGE I10/Citrus Inception to date Expenditures Estimated Completion March 2014 Project currently in the Construction Phase $ 685,000 1,496,000 4,117,000 21,961,000 $ 28,259,000 * Negative amounts in the month of July is due to yearend accrual reversals. Page 32