PRA Request, San Diego County Taxpayers Association

We received your request for information dated November 25, 2009, and have coordinated
responses to your questions below. The questions are listed in the order that they were asked in
the email sent from Lani Lutar, President & CEO of the San Diego County Taxpayers
Association.

1. Please provide a copy of the PowerPoint budget presentation given to the San Diego
County Taxpayers Association on November 24, 2009.
Please refer to Attachment 1.

2. Please provide a legal opinion on the Mission Bay Revenue Transfer described on
page 10 of the Fiscal Year 2010 Budget Amendment Report and Fiscal Year 2011
Proposed General Fund Budget.
A public opinion on the Mission Bay Revenue Transfer was not requested during the
Fiscal Year 2010 Budget Amendment Report and Fiscal Year 2011 Proposed General
Fund Budget deliberations, and therefore one is not available. Any communication
regarding this matter between staff and the City Attorney’s office are exempt from
disclosure as they are attorney-client communications.

3. The Fiscal Year 2010 Budget Amendment Report and Fiscal Year 2011 Proposed
General Fund Budget notes that a portion ($3.6 million) of the total annual debt
service payments in Fiscal Year 2011 for deferred maintenance bonds will be paid
for from the Capital Outlay Fund rather than the General Fund. Please explain how
this $3.6 million portion was determined, and what projects within the bond are
included in that portion’s calculation.
Capital Outlay can only be used to pay the principal portion of the total annual debt
services payments, which amounts to an estimated $3.6 million of the total $9.5 million
in deferred maintenance bonds. The City is currently in the process of restructuring the
debt service note; the actual principal portion will be determined when that process is
finalized and adjustments to the amount of the debt service payment will be made at that
time if necessary.

4. Please provide a legal opinion on the matter of deferred maintenance bonds being
paid from the Capital Outlay Fund, specifically from the proceeds of sale of real
estate assets.
Please refer to Attachment 2.

5. Please provide either: a copy of the McGuigan Settlement financing proposal or

correspondence with the financial institution that has expressed a willingness to
 purchase the remaining balance of the settlement with favorable financing terms for
the City.
The McGuigan Settlement financing proposal has not been approved by Council at this
time, and so is not available for release as part of a Public Records Act response. The
McGuigan Settlement financing proposal described on page 9 of the Fiscal Year 2010
Budget Amendment Report and Fiscal Year 2011 Proposed General Fund Budget, was
updated on page 2 of the Addendum to Fiscal Year 2010 Budget Amendment Report and
Fiscal Year 2011 Proposed General Fund Budget as follows:

• The sentence “As a result, the amount to be financed would be reduced by

these amounts to approximately $37.0 million” should be revised to reflect the
amount of $33.6 million.
• The sentence “The General Fund budget deficit for Fiscal Year 2011 will be
reduced by the difference between the General Fund portion of the settlement
of $32.0 million (included in the $179.1 million projected deficit) and the debt
service amount of $7.6 million due in Fiscal Year 2011 under the financing
plan” should be revised to state “…and the General Fund debt service amount
of $6.7 million…”.

6. Please provide a detailed budget (including fund balances) for the Library System
Improvement Program Fund over the past three years. Please include a list of
current projects within the program detailing the cost of each project and their
current balance of funds.
Please refer to Attachment 3 for fund balances over the past three years and a list of
current Capital Improvement Projects (CIP). The $10.2 million in fund balance at the end
of Fiscal Year 2009 will be used to fund the current year CIP budgeted expenditures of
$3.6 million, the Fiscal Year 2010 transfer of $4.3 million approved by the City Council
as part of the Fiscal Year 2010 Annual Budget, and the Fiscal Year 2011 transfer of $2.0
million approved by the City Council as part of the actions taken to mitigate the projected
Fiscal Year 2011 $179.1 million deficit.

7. Please provide a detailed budget (including fund balances) for the De Anza
Operating Fund over the past three years.

De Anza Operating Fund

Fund Balance Revenue Expense
Fiscal Year 2007 $1,419,357.82 $3,936,078.68 $2,674,748.15
Fiscal Year 2008 $4,123,936.82 $5,590,065.73 $2,885,486.73
Fiscal Year 2009 $6,694,447.82 $5,262,584.36 $2,692,073.36
 8. Please provide a list of deferred maintenance projects which have been funded since
Fiscal Year 2007, with the source of funding for each project identified.
The list of deferred maintenance projects by source of funding is still being compiled,
and will be made available shortly.

9. Will the City need to identify an additional $51-73 million in cuts or new revenue by
June 2010 in order for the Fiscal Year 2011 Budget to be balanced, based upon the
most current projections in the Fiscal Year 2010 First Quarter Budget Monitoring
Report?
The projected deficit for Fiscal Year 2011 reported in the City’s 2011-2015 Five-Year
Financial Outlook took into consideration a large drop in major revenues in Fiscal Year
2010, a drop that was also identified in the Fiscal Year 2010 First Quarter Budget
Monitoring Report. The Financial Management Department will be monitoring revenues
throughout Fiscal Year 2010 and any changes to projected major revenues for Fiscal
Years 2010 and 2011 will be considered, along with the new Annual Required
Contribution (ARC) when it is determined, for the Mayor’s June Revision to the Fiscal
Year 2011 Proposed Budget. At that time, adjustments will be recommended to the
Proposed Budget if necessary.

Attachments: 1. PowerPoint Presentation: Fiscal Years 2010/2011 Budget Overview $179M

Deficit
2. Memorandum: Use of Capital Outlay Fund for Payment of Debt Service
3. Library System Improvement Fund, Fiscal Years 2008-2010
Attachment 1
Attachment 2
 Attachment 3
Library System Improvement Fund

Fund Balance
Fiscal Year 2007 $14,171,777.00
Fiscal Year 2008 $14,590,831.00
Fiscal Year 2009 $10,236,644.26

FY 2010 Capital Improvement Projects

Year-to-Date
Remaining Expenditures and Year-to-Date
Available Encumbrances, as of Balance, as of
Description Project Budget 12-17-2009 12-17-2009
Skyline Hills Library $182,803 $50,000 $130,303

University Heights Library $23,571 $0 $23,571

College Heights Branch $72,508 $0 $72,508

San Diego Main Library $203,391 $174,950 $28,440

Logan Heights Branch Library $2,534,012 $1,450,619 $1,083,394

Balboa Branch Library $71,572 $56,255 $15,316

North Park Library $451,519 $0 $451,519

Paradise Hills Library $39 229

$39,229 $0 $39 229
$39,229

Scripps Miramar Ranch Library $24,708 $0 $24,708

Rancho Bernardo Library $8,207 $0 $8,207
Fund Balance $3,611,519 $1,731,824 $1,877,195