ONLINE AGENDA INFORMATION - City of El Cajon

City Clerk 

I Y 

City Council/HousingAuthority/ 

SuccessorAgency to the RedevelopmentAgency 

AG 

A 

The Valley ofOpportunity 

January 8, 2013 

Honoring 

and celebrating 

the people 

who make 

El Cajon 

The Valley 

of 

Opportunity 

J

ocomin in I _.-,,_ 

City Council Meeting For January 8, 2013 

March 12, 1913: The Council authorized the Street 

Superintendent to repair Main Street to the amount of $100.00. 

January 17 - Centennial Community Meeting - Celebration Overview - 5:30 p.m. at the 

Ronald Reagan Community Center, 195 E. Douglas Avenue, to thank participants and discuss 

the City's Centennial Celebration held on November 12, 2012. Visit www.elcajon100.com for 

more information, or call (619) 441-1754. 

January 17 - Journey To Our Historical Past - Centennial Lecture Series continues for 

2013. Featured guest speaker is Mr. Del Hood, retired executive editor for the Daily Californian 

newspaper. This presentation will be held at the Ronald Reagan Community Center, 195 E. 

Douglas Avenue, from 6:30 p.m. to 7:30 p.rn. The historical presentations will be held the 1 st & 

3 rd Thursday of the month. For more information, please call (619) 588-3708, or visit 

www.elcajon100.com. 

January 18 - Alternate Friday closure for EI Cajon City offices. Please go to 

www.cityofelcajon.us for a full calendar of hours for City offices during 2013. 

January 21 - City offices will be closed in observance of the Martin Luther King Jr. holiday. 

January 22 - EI Cajon City Council Meeting at 3:00 p.m. & 7:00 p.m. in the City Council 

Chambers at 200 Civic Center Way. For more information, and to view the full agenda online, 

please visit www.cityofelcajon.us. 

January 23 - EI Cajon Police Department Promotion and Retirement Ceremony to be held 

at 4:00 p.m. in the Community Room of the EI Cajon Police Station, at 100 Civic Center Way. 

February 1 & 15 - Alternate Friday closures for EI Cajon City offices. Please go to 

www.cityofelcajon.us for a full calendar of hours for City offices during 2013. 

EI Cajon Recreation Department - The new City of EI Cajon Recreation Guide for Winter 

2013 is out - register now! You may register in person at any of our recreation centers, or 

online at www.elcajonrec.org. For more information, please call (619) 441-1754. 

"The City of EI Cajon is celebrating 100 years as a City from November 2012 through 

November 2013! To see a brief video of the Centennial Celebration held on November 

12, 2012, and to see historical information about the City of EI Cajon, please visit our 

Centennial website at www.elcajon100.com.

PUBLIC COMMENT: 

At this time, any person may address a matter within the jurisdiction of the 

City Council/Housing Authority/Successor Agency to the EI Cajon 

Redevelopment Agency that is not on the Agenda. Comments relating to items 

on today's agenda are to be taken at the time the item is heard. State law 

prohibits discussion or action on items not on the Agenda; however, Council, 

Authority and Agency Members may briefly respond to statements or 

questions. An item may be placed on a future Agenda. In addition to briefly 

responding to statements or questions from the public, Councllmembars may 

also address the City Council during this time. 

WRITTEN COMMUNICATIONS: None 

3. PUBLIC HEARINGS: None 

4. ADMINISTRATIVE REPORTS: None 

5. COMMISSION REPORTS: None 

6. ACTIVITIES REPORTS OF MAYOR LEWIS 

SANDAG (San Diego Association of Governments); SANDAG (Chair, Public Safety 

Committee); LAFCO (Local Agency Formation Commission) - Member; Indian Gaming 

Local Community Benefit Committee. 

*6.1 SANDAG Board of Directors Agenda - December 7,2012 

*6.2 SANDAG Public Safety Committee Agency - December 14,2012 

Joint Meeting: EI Cajon City Council! 

Housing Authority/Successor Agency to 

The EI Cajon Redevelopment Agency 

-5- January 8, 2013 

3:00 p.m. and 7:00 p.m.

G ERAL INFORMATION: 

The following item is informational and will not be discussed unless the 

Council/Authority brings the item forward for discussion under Item No. 12 of the 

agenda. 

*A. Mother Goose Parade 2012 Contribution Summary 

Joint Meeting: EI Cajon City Council/ 

Housing Authority/Successor Agency to 


-8- January 8, 2013 

3:00 p.m. and 7:00 p.m.

I 

Tuesday, January 8, 2013 

7:00 p.m, 

COUNCIL CHAMBERS 

200 Civic Center Way 

EI Cajon, California 

• CALL TO ORDER: 

• ROLL CALL: 

I 

111111 

Mayor Mark Lewis 

City Clerk Kathie Rutledge 

PLEDGE OF ALLEGIANCE TO FLAG AND MOMENT OF SILENCE 

(The Courts have concluded that sectarian prayer as part of City Council Meetings is 

not permitted under the Constitution.) 

It) AGENDA CHANGES: 

It) PUBLIC COMMENT: 

At this time, any person may address a matter within the jurisdiction of the City 

Council/Housing Authority/Successor Agency to the EI Cajon Redevelopment 

Agency that is not on the Agenda. Comments relating to items on today's docket 

are to be taken at the time the item is heard. State law prohibits discussion or 

action on items not on the Agenda; however, Council, Authority and Agency 

Members may briefly respond to statements or questions. An item may be placed 

on a future Agenda. In addition to briefly responding to statements or questions 

from the public, Councilmembers may also address the City Council during this 

time. 

Joint Meeting: EI Cajon City Councill 

How::.ino - -- --->- -"" . Authoritv/Successor - -- -- - - - ..., . .. Aoencv - ... to 


*Backup Information Available - Housing Authority 

and Successor Agency Items are identified 

-9- January 8, 2013 

3:00 p.m. and 7:00 p.rn.

Adjournment: Mayor Lewis adjourned the Regular Joint Meeting of the City 

Council! Housing Authority/Successor Agency to the El Cajon Redevelopment 

Agency held this 11th day of December, 2012, at 4:24 p.rn. to Tuesday, 

December 11,2012 at 7:00 p.rn. 

Joint Meeting: EI Cajon City Council! 

Housing Authority/Successor Agency to the 

EI Cajon Redevelopment Agency 

-301 

DRAFT MINUTES 

KATHIE J. RUTLEDGE, CMC 

City Clerk/Secretary 

December 11, 2012 

3:00 p.m, and 7:00 p.m.

1.3 

APPROVAL OF READING BY TITLE AND WAIVER OF READING 

OF ORDINANCES ON THIS AGENDA 

The City Council waives the reading of the full text of every ordinance contained 

in this agenda and approves the reading of the ordinance title only.

RESOLUTION NO. -13 

RESOLUTION APPOINTING CITY ATTORNEY 

STAFF OF THE CITY OF EL CAJON 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 

OF EL CAJON AS FOLLOWS: 

The City Attorney staff members are appointed, effective January 8, 2013, as 

follows: 

1/8/12 (Item 1.4) 

City Attorney Staff Appt 

Morgan L. Foley, City Attorney 

Johanna N. Canlas, Assistant City Attorney 

Lisa A. Foster, Assistant City Attorney 

Barbara C. Luck, Assistant City Attorney 

Jennifer M. Lyon, Assistant City Attorney 

Morton Park, Assistant City Attorney 

Michael T. Reid, Assistant City Attorney 

Joshua D. Tucker, Assistant City Attorney 

Autumn Springfield, Staff Attorney 

1

Statement on Auditing 114 1 requires communication between the 

auditor client in relation to the audit of financial statements. SAS 1 identifies certain 

information, which must be provided, such as qualitative aspects of accounting practices, 

management representations, and other audit findings or issues, among others. The 

independent auditors are communicating this information to the City Council in the attached 

letter dated December 14, 2012. 

Note 

In the recent past, the City's Single Audit Report on Federal Awards was presented to the 

City Council for acceptance at the same time as the CAFR. However, due to the two due 

diligence reviews the City's auditor's conducted, as required by the most recent redevelopment 

dissolution legislation (AB 1484), the Single Audit had to be delayed. The Single Audit 

Report will be presented to the City Council for acceptance in February 2013. 

FISCAL IMPACT: None. 

Na '-"'Pa m 

DEPUTY CITY MANAGER I 

DIRECTOR OF FINANCE 

APPROVED BY: 

Douglas Williford 

CITY MANAGER

City of El Cajon, California 

Comprehensive Annual Financial Report 

Fiscal Year Ended June 30, 2012 

Honoring and celebrating 

the people who make El Cajon 

The Valley of Opportunity 

Prepared by the Finance Department

INTRODUCTORY SECTION 

CITY OF EL CAJON 

TABLE OF CONTENTS 

Table of Contents .............................................................................................................................................................. i 

Letter of Transmittal .......................................................................................................................................................... v 

Certificate of Achievement for Excellence in Financial Reporting (CSMFO) ..................................................................... x 

List of Principal Officials .................................................................................................................................................... xi 

Organizational Chart ......................................................................................................................................................... xii 

FINANCIAL SECTION 

Independent Auditors' Report ............................................................................................................................................ A - 1 

Management’s Discussion and Analysis (Required Supplementary Information) ............................................................. B - 1 

Basic Financial Statements: 

Government-wide Financial Statements: 

Statement of Net Assets ............................................................................................................................. C - 1 

Statement of Activities ................................................................................................................................ C - 2 

Fund Financial Statements: 

Governmental Funds: 

Balance Sheet ..................................................................................................................................... D - 2 

Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets ............ D - 4 

Statement of Revenues, Expenditures and Changes in Fund Balances ............................................. D - 6 

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances 

of Governmental Funds to the Statement of Activities .................................................................. D - 8 

Proprietary Funds: 

Statement of Net Assets ...................................................................................................................... D-10 

Statement of Revenues, Expenses and Changes in Fund Net Assets ................................................ D-11 

Statement of Cash Flows..................................................................................................................... D-12 

Fiduciary Funds: 

Statement of Fiduciary Assets and Liabilities ...................................................................................... D-13 

Statement of Changes in Fiduciary Net Assets – Private Purpose Trust Fund .................................... D-14 

Notes to the Basic Financial Statements: 

Note A: Summary of Significant Accounting Policies ....................................................................... E - 1 

Note B: Successor Agency Trust Fund for Assets of Former El Cajon Redevelopment Agency ..... E- 8 

Note C: Cash and Investments ........................................................................................................ E-10 

Note D: Accounts Receivable and Allowance for Bad Debt ............................................................. E-13 

Note E: Loans Receivable ............................................................................................................... E-14 

Note F: Capital Assets ..................................................................................................................... E-16 

Note G: Deferred Revenue .............................................................................................................. E-17 

Note H: Interfund Transactions and Balances ................................................................................. E-17 

Note I: Long-Term Liabilities .......................................................................................................... E-19 

Note J: Public Employees’ Retirement System ............................................................................... E-21 

Note K: Defined Contribution Plan ................................................................................................... E-23 

Note L: Other Post Employment Benefits ........................................................................................ E-24 

Note M: Risk Management .............................................................................................................. E-25 

i

FINANCIAL SECTION (continued) 



(continued) 

Notes to the Basic Financial Statements (continued): 

Note N: Conduit Debt ....................................................................................................................... E-26 

Note O: Commitments and Contingencies ....................................................................................... E-26 

Note P: Joint Powers Authorities ..................................................................................................... E-27 

Note Q: Prior Period Adjustment ...................................................................................................... E-28 

Note R: Significant Construction in Progress Projects ..................................................................... E-28 

Note S: Subsequent Events ............................................................................................................. E-29 

REQUIRED SUPPLEMENTARY INFORMATION 

Budgetary Comparison Schedules: 

General Fund ...................................................................................................................................................... F - 2 

Emergency Medical Service Special Revenue Fund .......................................................................................... F - 5 

Notes to the Required Supplementary Information ........................................................................................................... F - 6 

SUPPLEMENTARY INFORMATION 

Non-Major Governmental Funds: 

Combined Balance Sheet .................................................................................................................................. G - 1 

Combined Statement of Revenues, Expenditures and Changes in Fund Balances .......................................... G - 2 

Non-Major Special Revenue Funds: 

Combining Balance Sheet ................................................................................................................................. H - 2 

Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................................... H - 4 

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

Gas Tax ..................................................................................................................................................... H - 6 

Transit ..................................................................................................................................................... H - 7 

Federal/County Asset Forfeiture ................................................................................................................. H - 8 

Local Public Safety ..................................................................................................................................... H - 9 

Recreation Special Programs ..................................................................................................................... H-10 

Housing In Lieu Fees Special Revenue Fund ............................................................................................. H-11 

Federal, State and Local Grants ................................................................................................................. H-12 

Non-Major Debt Service Fund: 

Public Safety Facility Debt Service: 

Balance Sheet .............................................................................................................................................. I - 2 

Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual ........................ I - 3 

Major Capital Projects Funds: 

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

City Capital Improvement Program Projects ................................................................................................ J - 2 

Public Safety Facility Capital Project ........................................................................................................... J - 3 

ii

SUPPLEMENTARY INFORMATION (continued) 



(continued) 

Non-Major Capital Projects Funds: 

Non-Major Capital Projects Funds: 

Combining Balance Sheet .................................................................................................................... J - 5 

Combining Statement of Revenues, Expenditures and Changes in Fund Balances ............................ J - 6 

Enterprise Fund: 

Wastewater: 

Schedule of Revenues, Expenses and Changes in Fund Net Assets - Budget and Actual ................... K - 2 

Internal Service Funds: 

Combining Statement of Net Assets ................................................................................................................... L - 2 

Combining Statement of Revenues, Expenses and Changes in Fund Net Assets ............................................. L - 3 

Combining Statement of Cash Flows .................................................................................................................. L - 4 

Fiduciary Funds: 

Agency Funds: 

Combining Statement of Fiduciary Assets and Liabilities .................................................................................. M - 2 

Combining Statement of Changes in Fiduciary Assets and Liabilities ............................................................... M - 3 

STATISTICAL SECTION – Unaudited 

Financial Trends: 

Net Assets by Component ....................................................................................................................................... N - 2 

Changes in Net Assets ............................................................................................................................................ N - 4 

Fund Balances of Governmental Funds .................................................................................................................. N - 8 

Changes in Fund Balances of Governmental Funds ............................................................................................... N-10 

Revenue Capacity: 

Tax Revenues by Source, Governmental Funds ..................................................................................................... N-12 

Assessed Valuation and Net Taxable Assessed Value ........................................................................................... N-14 

Property Tax Rates per $100 of Assessed Value .................................................................................................... N-16 

Principal Property Taxpayers ................................................................................................................................... N-18 

Property Tax Levies and Collections ....................................................................................................................... N-20 

Debt Capacity: 

Ratios of Outstanding Debt by Type ............................................................................................................................ N-22 

Ratios of General Bonded Debt Outstanding and Legal Debt Margin ......................................................................... N-24 

Pledged-Revenue Coverage ....................................................................................................................................... N-26 

Direct and Overlapping Governmental Activities Debt ................................................................................................. N-28 

Demographic and Economic Information: 

Demographic and Economic Statistics ........................................................................................................................ N-29 

Principal Employers ..................................................................................................................................................... N-30 

Operating Information: 

Full-time Equivalent City Government Employees by Function/Program .................................................................... N-32 

Operating Indicators by Function/Program .................................................................................................................. N-34 

Capital Asset Statistics by Function/Program .............................................................................................................. N-36 

ACKNOWLEDGEMENTS 

iii



www.cityofelcajon.us CITY MANAGER 

To the Honorable Mayor, Members of the City Council and Residents of the City of El Cajon: 

The City of El Cajon annually publishes a complete set of financial statements presented in conformity with generally 

accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards by a firm 

of certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial 

statements of the City of El Cajon (“the City”) for the fiscal year ended June 30, 2012. 

This report consists of management’s representations concerning the finances of the City. Management, therefore, 

assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide 

a reasonable basis for making these representations, management of the City has established a comprehensive internal 

control framework over financial reporting that is designed both to protect the City’s assets from loss, theft, or misuse 

and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with 

GAAP. The City’s comprehensive framework of internal controls has been designed to provide reasonable assurance 

that the financial statements will be free from material misstatement. As management, we assert that, to the best of our 

knowledge and belief, this financial report is complete and reliable in all material respects. 

Rogers, Anderson, Malody & Scott, LLP, a firm of certified public accountants, audited the City’s financial statements 

with a goal to provide reasonable assurance that the basic financial statements of the City for the fiscal year ended June 

30, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence 

supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and 

significant estimates made by management; and evaluating the overall financial statement presentation. The 

independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified 

(“clean”) opinion that the City’s basic financial statements for the fiscal year ended June 30, 2012, were fairly presented 

in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of 

this report. 

The independent audit of the basic financial statements of the City was part of a broader, federally mandated “Single 

Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit 

engagements require the independent auditor to report not only on the fair presentation of the financial statements, but 

also report on the audited City’s internal control over financial reporting and compliance with legal requirements involving 

the administration of federal awards. Although the independent auditor reports on internal control and compliance with 

legal matters, they do not express an opinion on them. These reports are contained in the City’s separately issued 

Single Audit Report. 

200 CIVIC CENTER WAY ● EL CAJON, CA 92020-3916 ● TEL: (619) 441-1716 ● FAX: (619) 441-1770 

v

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic 

financial statements in the form of Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed 

to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately 

following the report of the independent auditors. 

Profile of the Government 

The City, incorporated on November 12, 1912, is located in the southern part of the state, just 15 miles due east of San 

Diego and is the fifth largest of 18 cities in San Diego County. The City currently occupies a land area of 14.4 square 

miles and serves a population of 100,116. The City has experienced limited growth of approximately 5% over the past 

ten years. 

By a vote of the people, the City became a charter city during this fiscal year, giving the city council more local control of 

municipal affairs. Policy-making and legislative authority are vested in the city council consisting of the mayor and four 

other council members. The city council is elected at large on a non-partisan basis. The mayor is elected to serve a 

four-year term and councilmembers serve four-year staggered terms. The city council is responsible for, among other 

things, passing ordinances, adopting the budget, appointing committees, and hiring both the city manager and city 

attorney. The City operates under the council-manager form of government. The city manager is responsible for 

carrying out the policies and ordinances of the city council, for overseeing the day-to-day operations of the City, and for 

appointing the directors of the various departments. 

The City provides a full range of services, including police and fire protection, animal control, emergency medical 

services, construction and maintenance of streets, parks, civic facilities, and other infrastructure, right-of-way regulation, 

city planning and building regulation, recreational activities, cultural events, housing assistance and wastewater services. 

The City is financially accountable for the El Cajon Redevelopment Agency (which was dissolved effective February 1, 

2012), El Cajon Housing Authority, and El Cajon Public Financing Authority that are reported as blended component 

units within the City’s financial statements. Additional information on these separate entities can be found in Note A.2. in 

the notes to the basic financial statements. 

The annual budget serves as the foundation for the City’s financial planning and control. All departments of the City are 

required to submit requests for appropriation to the city manager in March of each year. The city manager uses these 

requests as the starting point for developing a proposed budget. The city manager then presents this proposed budget 

to the city council for review in June. The city council holds workshop meeting(s) and has a public hearing to adopt a 

final budget by no later than June 30, the close of the City’s fiscal year. The appropriated budget is prepared by fund 

(e.g., general fund), function (e.g., public safety), department (e.g., police) and activity (e.g., patrol). Department 

directors may request transfers of appropriations within a department, with approval of the city manager. Transfers of 

appropriations between funds, however, require approval of the city council. Budget-to-actual comparisons are provided 

in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the 

general fund and major special revenue funds, this comparison is presented as part of the required supplementary 

information in the accompanying financial statements. For governmental funds that have appropriated annual budgets, 

other than the general fund and major special revenue funds, this comparison is presented in the supplementary section 

of the accompanying financial statements. 

Local Economy 

The pace of California’s economic recovery continued to be slow and steady this fiscal year. In October 2012, the State 

unemployment rate was 10.1% compared to 11.7% the prior year. El Cajon’s unemployment rate is higher at 13.0% and 

is relatively unchanged from last year. El Cajon’s rate is higher due to the significant job losses in the construction 

industry and the large influx of refugees over the past years. 

vi

Movement in the University of San Diego Index of Leading Economic Indicators has been in a positive direction for ten of 

the last twelve months. None of the index components have advanced significantly, reflecting the current state of the 

economy. The outlook is for more of the same, although the local economy is expected to pick up some in 2013. The 

national Index of Leading Economic Indicators recently registered back-to-back gains for the first time since the 

beginning of 2012. Although there are some worries about the global economy and the looming “fiscal cliff,” the news on 

the national economy has been generally positive, although not spectacular. 

Sales Tax Revenues – Sales tax revenues for the City increased $188,652 from the prior fiscal year, a less than 1% 

increase. Growth in the economy has been negligible this fiscal year. 

Property Taxes – Property taxes collected decreased $1,791,236 from the prior year attributable to the loss of property 

tax increment because of the dissolution of the El Cajon Redevelopment Agency. According to data from the County of 

San Diego Assessor’s Office, the assessed valuation of taxable property in El Cajon increased 0.52% in fiscal year 

2011-12 over the prior year. Projections for fiscal year 2012-13 anticipate a minimal increase of 0.73% in the net 

assessed valuation. 

Based on the slow recovery, it is critical that the City position itself to maintain reserves and avoid cost increases that 

cannot be matched with equal revenues. 

Long Term Financial Planning 

The City utilizes many sources to evaluate and provide current and long range financial planning. These sources include 

the comprehensive annual financial report (CAFR), the annual budget, the five-year capital improvement plan, and the 

five-year business plan. In conjunction with the CAFR and the annual budget, the five-year capital improvement and 

business plans are reviewed and updated annually as a forerunner to preparing the annual budget. 

As directed by City Council Policy B-12, the general fund maintains a committed fund balance equal to 20% of annual 

budget expenditures, $10,003,509 at June 30, 2012. Additionally, the general fund had assigned fund balance of 

$5,370,474 for SB 90 disallowed costs and unfunded retirement obligations. The $3,410,384 unassigned fund balance 

at June 30, 2012, provides resources for future economic uncertainties. Based on recent analysis and information 

received to date, general fund revenue and expenditure projections for fiscal year 2012-13 appear to be conservatively 

estimated. The City must continue to operate in a fiscally conservative manner and prioritize capital outlay expenditures 

based upon available funding. 

In November 2004, the voters approved Proposition O, a ten-year half-cent sales tax measure, dedicated to the 

construction of the public safety center (PSC), replacement of the animal shelter, and upgrading of various fire stations. 

The proceeds from the $25,195,000 in revenue bonds issued by the El Cajon Public Financing Authority in June 2009 

have been spent for the PSC construction contract. The PSC was placed into service on August 24, 2011. Planning and 

design of the animal shelter will begin in earnest now that the PSC has become operational. A total of $7,674,879 was 

collected in fiscal year 2011-12 as a result of Proposition O. 

In November 2008, the voters approved Proposition J, a twenty-year half-cent sales tax measure, intended to preserve 

essential City services and bridge the City’s long-standing fiscal crisis needs. A total of $7,711,172 was collected in fiscal 

year 2011-12 as a result of Proposition J and was vital in maintaining essential services. 

The City’s Redevelopment Agency was dissolved effective February 1, 2012, in accordance with State law (ABx1 26). 

Subsequent legislation, AB 1484, signed on June 27, 2012, revised the dissolution process, requiring the property tax 

increment distributions received in December 2011 and January 2012 to be returned to the State, as well as the 

remittance of unencumbered liquid assets. Further discussion of the impact of the redevelopment dissolution is 

discussed below and in the notes to the basic financial statements, Note B. 

vii

Transportation related capital projects were primarily funded by TransNet and Redevelopment funding, prior to 

dissolution. Combined, $1,438,550 was utilized to resurface major thoroughfares and local residential streets this year. 

Projects are prioritized based upon need and available funding. 

Major Fiscal Issues 

The City contributes to the California Public Employees Retirement System (CalPERS), an agent multiple-employer 

defined benefit pension plan for its employees. Each year an independent actuary, engaged by the pension plan, 

calculates the amount of the annual contribution that the City must make to the pension plan to ensure that the plan will 

be able to fully meet its obligations. As a matter of policy, the City fully funds each year’s annual required contribution to 

the pension plan as determined by this funding policy. The unfunded actuarial liability associated with employee services 

rendered to date is being systematically funded over 30 years, as part of the annual required contribution calculated by 

the actuary. 

In 2001 and 2002, CalPERS experienced a pension fund crisis due to poor investment returns and losses. As a member 

agency of CalPERS, the crisis resulted in the City going from a fully-funded plan, with reduced contribution rates (or no 

required contribution) to an under-funded plan with spiked rates. Actuarial studies were conducted and benefits were 

enhanced when better funded assets indicated nominal rate impacts. In reality, the lower investment returns and the 

impact of the enhanced benefits resulted in higher than originally anticipated rate increases. This was further 

compounded by the negative 24% investment return CalPERS experienced in 2009. 

Employer retirement rates for fiscal year 2011-12 were 25.325% for miscellaneous members and 35.597% for safety 

members. Employer retirement rates for fiscal year 2012-13 increased to 26.080% for miscellaneous members and 

37.123% for safety members. These rate increases are factored into the five-year business plan. Without the decision 

by the CalPERS Board to approve the implementation of additional “smoothing methods”, the rates would have spiked 

even higher. 

Governor Brown recently signed the Public Employees’ Pension Reform Act (PEPRA), which establishes new retirement 

benefit levels and limits for “new members” effective January 1, 2013. CalPERS is in the process of evaluating the 

impacts as it prepares to implement PEPRA. It is too soon to determine the timing and financial impact on the City of El 

Cajon. Further discussion of PEPRA can be found in the notes to the basic financial statements, Note S. 

As mentioned above, the El Cajon Redevelopment Agency was dissolved effective February 1, 2012. Its housing related 

assets and obligations were transferred to the El Cajon Housing Authority, and its non-housing related assets and 

obligations were transferred to the Successor Agency to the Former El Cajon Redevelopment Agency. The Successor 

Agency is charged with fulfilling the former Redevelopment Agency’s enforceable obligations and winding down its 

affairs as expeditiously as possible. The Successor Agency receives twice yearly distributions from the Redevelopment 

Property Tax Trust Fund (RPTTF) administered by the county auditor-controller for recognized enforceable obligations. 

Any remaining monies in the RPTTF after each distribution is allocated and paid to the affected taxing entities, of which 

the City of El Cajon is one. This amount is significantly less than the property tax increment revenues, which were 

previously received by the Redevelopment Agency. Economic development activities and funding for low-moderate 

housing programs will be significantly hampered by the loss of the property tax increment revenues. 

The City’s emergency medical services are anticipated to continue to be under-funded due to non-payment by noninsured 

patients and under funding of actual costs by Medicare and Medi-Cal qualifying patients. The five-year business 

plan anticipates continued under-funding of both Medicare and Medi-Cal due to federal and state fiscal constraints and 

greater non-payment, as more patients are uninsured due to the lingering effects of the recession and high 

unemployment. 

viii

Funding and reporting of unfunded OPEB (Other Post Employment Benefits) liability per GASB 43/45 (Accounting and 

Financial Reporting by Employers for Post-Employment Benefits Other than Pensions) transpired beginning in fiscal year 

2007-08. Current payments are being made by the City per an actuarial study to pre-fund (15 years amortization) OPEB 

benefit costs with funds being deposited into a CalPERS trust account. Additionally, current health expenses for retirees 

are recognized and paid as expenditures. 

Awards and Acknowledgements 

In previous years, the City applied for and was awarded the Certificate of Achievement for Excellence in Financial 

Reporting by the Government Finance Officers Association (GFOA). The City received this award for five consecutive 

years between fiscal years 2001 and 2006. The City has also applied for and been awarded the certificate for 

Outstanding Financial Reporting from the California Society of Municipal Finance Officers (CSMFO). Due to a change in 

the CSMFO award program criteria, the City was no longer eligible to apply for and receive both the Certificate of 

Achievement for Excellence from GFOA and the certificate for Outstanding Financial Reporting from CSMFO in a single 

year. Beginning fiscal year ended 2007, the City has applied for, and been awarded the CSMFO certificate, although we 

feel that this CAFR would also meet the criteria for the GFOA award. 

The City is also a CSMFO recipient of the Excellence in Operating Budgeting, having received this award every year 

beginning in fiscal year 1996-97. 

The preparation of this Comprehensive Annual Financial Report could not have been accomplished without the 

professional, efficient and dedicated service of the Finance Department staff and the assistance of the City’s auditors, 

Rogers, Anderson, Malody & Scott, LLP. In particular, we would like to express our appreciation to members of the 

Finance Department that prepared this report. We would also like to thank the Mayor and members of the City Council 

for their support and commitment to fiscal integrity and financial leadership. 

Sincerely, 

Douglas Williford Nancy Palm 

City Manager Deputy City Manager/Director of Finance 

ix


LIST OF PRINCIPAL OFFICIALS 

At Date of Issuance 

Elected Officials 

Mayor 

Mark Lewis 

Councilmembers 

Bill Wells, Mayor Pro Tem 

Tony Ambrose 

Gary Kendrick 

W. E. “Bob” McClellan 

Appointed Officials 

City Manager 


City Attorney 

Morgan Foley 

Management Team 

Nancy Palm – Deputy City Manager/Director of Finance/Treasurer 

Rob Turner – Deputy City Manager/Director of Public Works/City Engineer 

Kathie Rutledge – City Clerk 

Jim Redman – Police Chief 

Rick Sitta – Fire Chief 

Melissa Ayres – Director of Community Development 

Jim Lynch – Director of Human Resources 

Sara Ramirez – Director of Recreation 

xi

RECREATION 

PUBLIC WORKS 

COMMISSIONS 

& BOARDS 

FIRE 


ORGANIZATION CHART 

CITIZENS 

CITY 

COUNCIL 

CITY MANAGER 

xii 

CITY ATTORNEY 

POLICE 

CITY CLERK 

COMMUNITY DEVELOPMENT HUMAN RESOURCES 

FINANCE

In accordance with Government Auditing Standards, we have also issued a report dated December 14, 2012, 

on our consideration of the City's internal control over financial reporting and on our tests of its compliance with 

certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that 

report is to describe the scope of our testing of internal control over financial reporting and compliance and the 

results of that testing, and not to provide an opinion on the internal control over financial reporting or on 

compliance. That report is an integral part of an audit performed in accordance with Government Auditing 

Standards and should be considered in assessing the results of our audit. 

Accounting principles generally accepted in the United States of America require that the management’s 

discussion and analysis and budgetary comparison information, as listed in the table of contents, be presented 

to supplement the basic financial statements. Such information, although not a part of the basic financial 

statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential 

part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or 

historical context. We have applied certain limited procedures to the required supplementary information in 

accordance with auditing standards generally accepted in the United States of America, which consisted of 

inquiries of management about the methods of preparing the information and comparing the information for 

consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge 

we obtained during our audit of the basic financial statements. We do not express an opinion or provide any 

assurance on the information because the limited procedures do not provide us with sufficient evidence to 

express an opinion or provide any assurance. 

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively 

comprise the City's basic financial statements as a whole. The introductory section, the combined nonmajor 

fund financial statements, the combining non-major fund financial statements, the nonmajor budgetary 

comparison information and the statistical section are presented for purposes of additional analysis and are not 

a required part of the basic financial statements. The combined nonmajor financial statements, the combining 

non-major fund financial statements and the nonmajor individual budgetary comparison information are the 

responsibility of management and were derived from and relate directly to the underlying accounting and other 

records used to prepare the financial statements. The information has been subjected to the auditing 

procedures applied in the audit of the financial statements and certain additional procedures, including 

comparing and reconciling such information directly to the underlying accounting and other records used to 

prepare the financial statements or to the financial statements themselves, and other additional procedures in 

accordance with auditing standards generally accepted in the United States of America. In our opinion, the 

information is fairly stated in all material respects in relation to the financial statements as a whole. The 

introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of 

the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on 

them. 


A-2


MANAGEMENT’S DISCUSSION AND ANALYSIS 

For the fiscal year ended June 30, 2012 

As management of the City of El Cajon, we offer readers of these financial statements this narrative overview 

and analysis of the financial activities of the City for the fiscal year ended June 30, 2012. We encourage 

readers to consider the information presented here in conjunction with additional information that we have 

furnished in our letter of transmittal, which can be found in the introductory section of this report, and with the 

City’s financial statements, which follow this discussion. 

FINANCIAL HIGHLIGHTS 

• The increase in the City’s net assets and general revenues of approximately $20,000,000 is attributable to 

an extraordinary gain from the transfer of assets and obligations of the former El Cajon Redevelopment 

Agency to its successors. The El Cajon Redevelopment Agency, a blended component unit, was dissolved 

on February 1, 2012, as required by ABx1 26. Its housing related assets and obligations were transferred 

to the El Cajon Housing Authority, a special revenue fund. Its non-housing assets and obligations were 

transferred to the Successor Agency to the Former El Cajon Redevelopment Agency, a private purpose 

trust fund. 

• At the close of fiscal year 2011-12, the City’s total assets exceeded its liabilities by more than 

$328,702,100, an increase of approximately $28,909,300, 9.6%, from the prior fiscal year. 

• The fund balance for governmental funds totaled $77,147,316 at June 30, 2012, a decrease of over 

$32,506,800 from the previous year. This decrease was due in large part to the dissolution of the El Cajon 

Redevelopment Agency. 

OVERVIEW OF THE FINANCIAL STATEMENTS 

This discussion and analysis are intended to serve as an introduction to the City of El Cajon’s basic financial 

statements. The City’s basic financial statements are comprised of three components: 1) government-wide 

financial statements [section C], 2) fund financial statements [section D], and 3) notes to the basic financial 

statements [section E]. This report also contains certain required supplementary information [section F]; and 

optional supplementary information [sections G through M] that presents combining statements for non-major 

governmental funds (special revenue, debt service and capital projects), enterprise fund, internal service funds, 

and fiduciary funds. 

Government-wide financial statements. The government-wide financial statements (statement of net assets 

and statement of activities) provide a broad overview of the City’s finances, in a manner similar to private-sector 

businesses. 

The statement of net assets presents information on all of the City’s assets and liabilities, with the difference 

between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful 

indicator of whether the financial position of the City is improving or deteriorating. 

The statement of activities presents information showing how the government’s net assets changed during the 

most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the 

change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in 

this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes, 

and earned but unused vacation leave). 

B-1




Both of the government-wide financial statements distinguish functions of the City that are principally supported 

by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to 

recover all of their costs through user fees and charges (business-type activities). The governmental activities 

of the City include general government, public safety consisting of police and fire, public works, parks and 

recreation, community development and capital projects. The business-type activity of the City includes 

wastewater operations. 

The government-wide financial statements include not only the City itself (known as the primary government), 

but also the El Cajon Redevelopment Agency through dissolution, the El Cajon Public Financing Authority, and 

the El Cajon Housing Authority, separate entities for which the City is financially accountable. 

The government-wide financial statements can be found beginning on page C-1 of this report. 

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over 

resources that have been segregated for specific activities or objectives. The City, like other state and local 

governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal 

requirements. All of the City’s funds are divided into three categories: governmental funds, proprietary funds, 

and fiduciary funds. 

Governmental funds. Governmental funds are used to account for essentially the same functions reported as 

governmental activities in the government-wide financial statements. However, unlike the government-wide 

financial statements, governmental fund financial statements focus on near-term inflows and outflows of 

spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. 

Such information may be useful in evaluating a government’s near-term financing requirements. 

The focus of the governmental funds is narrower than that of the government-wide financial statements, 

therefore, it is useful to compare the information presented for the governmental funds with similar information 

presented for governmental activities in the government-wide financial statements. By doing so, readers may 

better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund 

balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances 

provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. 

The City maintains individual governmental funds. Information is presented separately in the governmental 

funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund 

balances for the General Fund, HOME Special Revenue Fund, Redevelopment Agency Special Revenue Fund, 

Housing Authority Special Revenue Fund, Emergency Medical Service Special Revenue Fund, Redevelopment 

Agency Debt Service Fund, City Capital Improvement Capital Projects Fund, Public Safety Facilities Projects 

Capital Projects Fund, and Redevelopment Agency Capital Projects Fund, all of which are considered to be 

major funds. These statements can be found beginning on page D-2. Data from the other governmental funds 

are combined into a single, aggregate presentation. Individual fund data for each of these non-major 

governmental funds is provided in the form of combining statements located in sections H, I, and J of this report. 

The City adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has 

been provided for the General Fund to demonstrate compliance with this budget beginning on page F-2 of this 

report. 

B-2

Governmental 

Funds 

Balance Sheet n/a 




Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to 

report the same functions presented as business-type activities in the government-wide financial statements. 

The City uses an enterprise fund to account for its Wastewater activities. Internal service funds are an 

accounting device used to accumulate and allocate costs internally among the City’s various functions. The City 

uses internal service funds to account for its Vehicle Maintenance, Vehicle and Equipment Replacement, Selfinsurance, 

Information Technology Replacement, and Other Post-Employment Benefits. These services 

predominantly benefit governmental rather than business-type functions, so they have been included with 

governmental activities in the government-wide financial statements. The proprietary fund financial statements 

can be found beginning on page D-10 of this report. Individual fund data for each of the internal service funds is 

provided in the form of combining statements beginning on page L-1. 

Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the 

government. Fiduciary funds are not reflected in the government-wide financial statement because the 

resources of those funds are not available to support the City’s own programs. The accounting for these funds 

is much like that used for proprietary funds. The fiduciary fund financial statements can be found beginning on 

page D-13 of this report. 

Notes to the basic financial statements. The notes provide additional information that is essential to a full 

understanding of the data provided in the government-wide and fund financial statements. The notes to the 

basic financial statements can be found beginning on page E-1 of this report. 

Other information. In addition to the basic financial statements and accompanying notes, this report also 

presents certain required supplementary information concerning the City’s progress in funding its obligation to 

provide pension and other post employment benefits to its employees, and the General Fund’s budgetary 

comparison schedule. Required supplementary information can be found beginning on page F-1 of this report. 

The combining statements are presented as other supplementary information. Combining and individual fund 

statements and schedules can be found in sections G through M. 

FUND FINANCIAL STATEMENTS 

Proprietary 

Funds 

Fiduciary 

Funds 

GOVERNMENT-WIDE FINANCIAL STATEMENTS 

STATEMENT OF NET ASSETS STATEMENT OF ACTIVITIES 

Governmental 

Activities 

column 

Business-Type 

Activities 

column 

Statement of Revenues, 

Expenditures, and 

Changes in Fund 

Balances 

Internal Service Funds Enterprise Fund Internal Service Funds Enterprise Fund 

Statement of Net Assets Statement of Net Assets 

Governmental 

Activities 

column 


Expenses, and Changes 

in Fund Net Assets 

B-3 

Business-Type 

Activities 

column 

n/a n/a 


Expenses, and Changes 

in Fund Net Assets 

n/a n/a n/a n/a 

This information is not 

presented in the 

Government-wide 

Financial Statements 

because it is not a 

required component. 

Statement of Cash Flows 

Statement of Fiduciary 

Net Assets




The relationships between the government-wide financial statements and the fund financial statements are 

summarized in the diagram on the preceding page. The diagram is particularly helpful in understanding how the 

government-wide and fund financial statements are affected by the dissolution of the El Cajon Redevelopment 

Agency, a blended component unit reported as governmental activities and governmental funds, and the 

Successor Agency to the Former El Cajon Redevelopment Agency, a fiduciary fund which is not included as a 

governmental activity or government fund. 

OVERVIEW OF THE CITY’S FINANCIAL POSITION AND OPERATIONS 

The City’s overall financial position and results of operations for the past two years are summarized in the 

following tables based on the information included in the government-wide financial statements. 

Statement of Net Assets 

Comparative Data as of June 30 

Governmental activities Business-type activities Total 

ASSETS 

Current & other 

2012 2011 2012 2011 2012 2011 

assets $ 95,703,585 $132,316,226 $ 20,410,827 $ 22,387,785 $116,114,412 $154,704,011 

Capital assets, net 214,798,231 217,598,828 47,812,824 48,410,712 262,611,055 266,009,540 

Total assets 310,501,816 349,915,054 68,223,651 70,798,497 $378,725,467 420,713,551 

LIABILITIES 

Long-term liabilities 29,590,120 100,685,882 10,100,534 11,353,641 39,690,654 112,039,523 

Other liabilities 9,700,167 8,400,499 632,524 480,642 10,332,691 8,881,141 

Total liabilities 39,290,287 109,086,381 10,733,058 11,834,283 50,023,345 120,920,664 

NET ASSETS 

Invested in capital 

assets, net of 

related debt 187,945,040 184,845,829 37,954,007 37,372,058 225,899,047 222,217,887 

Restricted 26,801,369 60,158,904 - - 26,801,369 60,158,904 

Unrestricted 56,465,120 (4,176,060) 19,536,586 21,592,156 76,001,706 17,416,096 

Total net assets $271,211,529 $240,828,673 $ 57,490,593 $ 58,964,214 $328,702,122 $299,792,887 

As of June 30, 2012, the City’s assets exceeded liabilities by $328,702,122. The largest portion of the City’s 

total net assets, $262,611,055 (69%), reflects the investment in capital assets such as land, buildings, 

machinery and equipment, less any outstanding debt used to acquire those assets. An additional $26,801,369 

of the City’s total net assets, 8%, is subject to external restrictions on how those assets may be used. The 

remaining balance of unrestricted net assets may be used to meet the City’s ongoing obligations to residents 

and creditors. At the end of the fiscal year, the combined total unrestricted net assets equaled $76,001,706, an 

increase of $58,585,610 from the prior fiscal year. This significant increase in largely attributable to the 

dissolution of the Redevelopment Agency. 

B-4




Statement of Activities 



REVENUES 

Program revenues: 

2012 2011 2012 2011 2012 2011 

Charges for services 

Operating grants & 

$ 9,042,953 $ 9,472,078 $ 13,382,226 $ 11,456,017 $ 22,425,179 $ 20,928,095 

contributions 

Capital grants & 

9,264,974 6,827,345 - - 9,264,974 6,827,345 

contributions 

General revenues: 

9,396,184 11,290,298 - - 9,396,184 11,290,298 

Property taxes 27,082,113 28,873,349 - - 27,082,113 28,873,349 

Sales taxes 22,466,903 22,278,251 - - 22,466,903 22,278,251 

Other taxes 6,515,050 6,814,947 - - 6,515,050 6,814,947 

Intergovernmental - 502,955 - - - 502,955 

Interest earnings 299,103 234,385 82,552 160,435 381,655 394,820 

Other 745,817 2,814,422 1,465,778 90,143 2,211,595 2,904,565 

Extraordinary gain 20,227,405 - - - 20,227,405 - 

Total revenues 105,040,502 89,108,030 14,930,556 11,706,595 119,971,058 100,814,625 

EXPENSES 

General government 7,696,562 6,496,555 - - 7,696,562 6,496,555 

Public safety 38,633,076 37,649,169 - - 38,633,076 37,649,169 

Public works 11,680,268 10,695,592 - - 11,680,268 10,695,592 

Parks & recreation 4,697,831 4,811,375 - - 4,697,831 4,811,375 

Community development 8,922,132 7,085,610 - - 8,922,132 7,085,610 

Interest on long-term debt 3,033,459 4,426,180 - - 3,033,459 4,426,180 

Wastewater - - 16,398,495 15,413,470 16,398,495 15,413,470 

Total expenses 74,663,328 71,164,481 16,398,495 15,413,470 91,061,823 86,577,951 

Increase (decrease) in net 

assets before transfers 30,377,174 17,943,549 (1,467,939) (3,706,875) 28,909,235 14,236,674 

Transfers 5,682 78,697 (5,682) (78,697) - - 

Change in net assets 30,382,856 18,022,246 (1,473,621) (3,785,572) 28,909,235 14,236,674 

Net assets, beginning 240,828,673 222,806,427 58,964,214 62,749,786 299,792,887 285,556,213 

Net assets, ending $ 271,211,529 $ 240,828,673 $ 57,490,593 $ 58,964,214 $ 328,702,122 $ 299,792,887 

Governmental activities. The City’s governmental activities were significantly impacted by the dissolution of 

the Redevelopment Agency and the transfer of its assets and obligations to the Successor Agency and El Cajon 

Housing Authority. Although assets decreased, liabilities decreased by a much larger amount, leaving net 

assets over $28,000,000 greater than the prior fiscal year. 

Program revenues remained relatively level in comparison to the prior year. Property taxes were lower this 

fiscal year due to the lost tax increment resulting from the Redevelopment Agency dissolution. Sales taxes 

increased slightly, but other taxes were slightly lower. Other general revenues were higher last year resulting 

from the gain on the sale of assets. An extraordinary gain was realized due to the dissolution of the 

Redevelopment Agency and the resultant transfer of assets and obligations to the Successor Agency. 

B-5




Governmental Activities Revenues 

For the Fiscal Year Ended June 30, 2012 

Governmental Activities Expenses 


Governmental activities expenses experienced a net increase from the prior fiscal year. General government 

expenditure increases were the result of the increased volume of vacation leave conversions due to the 

upcoming implementation of a vacation leave accrual limit and the reduction of compensated absences liability 

resulting from employee retirements. Additionally, a Human Resources Analyst position was placed back in the 

budget and costs related to the recruitment of a permanent City Manager contributed to the increased general 

government expenses this fiscal year. With the re-established Human Resource Analyst, recruitment efforts 

increased for public safety positions, resulting in less savings compared to the prior year. Additionally, 

B-6




employee benefit costs rose contributing to the increase in public safety expenses. Interest on long-term debt 

decreased because the responsibility for the tax allocation bonds debt service payments transferred to the 

Successor Agency when the Redevelopment Agency was dissolved as required by law. 

Business-type activities. The City’s business-type activities report positive ending balances in all categories 

of net assets. During fiscal year 2011-12, total assets decreased by approximately $2,574,800 and total 

liabilities decreased by over $1,101,200. Overall, net assets decreased by approximately $1,473,621. The 

ending unrestricted net assets of nearly $19,536,600 will be used to satisfy the $9,858,817 outstanding debt to 

San Diego Metro Wastewater as well as funding ongoing sewer activities and future capital needs. Expenses 

outpaced revenues again this fiscal year but at a lesser amount than the prior year. Sewer rates were 

increased in January 2012, the first time in twelve years. The rate increase had much to do with lessening the 

gap between revenues and expenses. 

FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS 

As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal 

requirements. 

Governmental Funds. The focus of the City’s governmental funds is to provide information on near-term 

inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s 

financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City’s net 

resources available for spending at the end of the fiscal year. 

General Fund. This is the City’s chief operating fund. As of June 30, 2012, the ending fund balance was 

$18,775,367, a decrease of $1,303,728 from the prior fiscal year. General fund revenues increased $564,601 

(1.0%) compared to last fiscal year while expenditures increased $950,213 (1.9%). Additionally, net transfers 

out increased $5,218,040 for additional contributions to the vehicle, equipment, and information technology 

replacement funds, and the pre-funding of other post employment benefits. 

HOME Program Special Revenue Fund. This fund accounts for federal grants to support local affordable 

housing initiatives under the HOME Investment Partnership Program. The ending fund balance of $9,435,927 

increased $1,970,000 from the prior fiscal year because of the increase in loans receivable for the first-time 

homebuyers loans for the Weiland Development Project and the CHDO loan to San Diego Habitat for Humanity. 

Redevelopment Agency Special Revenue Fund. This fund accounts for the Agency’s activities designed to 

increase the supply of low and moderate income housing available within the City. The Redevelopment Agency 

was dissolved effective February 1, 2012, in accordance with legislation passed by the State of California. The 

Statement of Revenues, Expenditures and Changes in Fund Balances reflects the activity of this fund for the 

period July 1, 2011, through January 31, 2012, including an extraordinary loss of $4,922,046 related to the 

transfer of assets and liabilities upon dissolution. All assets and obligations of the Redevelopment Agency were 

transferred to either the El Cajon Housing Authority, for housing related assets and obligations, or the 

Successor Agency to the Former El Cajon Redevelopment Agency, for all other assets and obligations. 

B-7




El Cajon Housing Authority Special Revenue Fund. This fund accounts for the housing enforceable obligations 

of the former El Cajon Redevelopment Agency for the purpose of developing low to moderate income housing. 

The financial statements for this fund are from inception, February 1, 2012, through June 30, 2012, and reflect 

the net transfer in from the former Redevelopment Agency. As of June 30, 2012, the Housing Authority had 

assets of $16,023,036, nearly two-thirds of which were loans receivable. The capital outlay expenditures of 

$4,251,309 was for the housing related land received as a result of the dissolution of the El Cajon 

Redevelopment Agency. 

Emergency Medical Services Special Revenue Fund. This fund accounts for paramedic services, which were 

funded by service charges, fixed tax assessments, and a subsidy from the General Fund. In comparison to the 

prior fiscal year, revenues were slightly lower (2.73%) while expenditures were slightly higher (2.94%) resulting 

in a $348,900 increase in the General Fund subsidy. Collections are continuing to be affected by the sluggish 

economy. Fewer patients have insurance and those with insurance have higher co-pays and deductibles 

making it more difficult to collect. Fleet operating and replacement costs accounted for nearly one-half of the 

increased expenditures. 

Redevelopment Agency Debt Service. This fund is used to account for the Agency’s property tax increment 

revenues, pass-through payments to other taxing agencies, and debt service payments. The Redevelopment 

Agency was dissolved effective February 1, 2012, in accordance with legislation passed by the State of 

California. The Statement of Revenues, Expenditures and Changes in Fund Balances reflects the activity of this 

fund for the period July 1, 2011, through January 31, 2012, including an extraordinary loss of $4,658,214 related 

to the transfer of assets and liabilities upon dissolution. All assets and obligations of the Redevelopment 

Agency were transferred to either the El Cajon Housing Authority, for housing related assets and obligations, or 

the Successor Agency to the Former El Cajon Redevelopment Agency, for all other assets and obligations. 

City Capital Improvement Program Capital Projects Fund. This fund accounts for monies to be utilized for the 

repair, improvement, and preservation of City owned facilities and equipment, additional public buildings, and 

the acquisition of land. The ending fund balance was $7,140,528, an increase of $4,181,126 (141.3%) over the 

previous fiscal year. Net transfers in rose $3,360,400 accounting for 80% of the fund balance increase. This is 

in large part attributable to an increased contribution from the General Fund as the City Council recognizes the 

importance of maintaining its public buildings, facilities, and infrastructure. 

Public Safety Facility Project Capital Projects Fund. This fund accounts for activities associated with the 

construction or upgrade to police, fire, and animal control facilities. As of June 30, 2012, the ending fund 

balance was $17,539,456, an increase of $2,621,416 from the prior fiscal year. Revenues increased very 

slightly (1.1%) while expenditures decreased dramatically (81.9%) as the construction expenditures for the new 

public safety center wound down. The Police Department relocated to the new facility in August 2011, and it 

was officially dedicated in November 2011. 

Redevelopment Agency Capital Projects. This fund accounts for the use of financial resources for capital 

projects in the Agency’s project areas. The Redevelopment Agency was dissolved effective February 1, 2012, 

in accordance with legislation passed by the State of California. The Statement of Revenues, Expenditures and 

Changes in Fund Balances reflects the activity of this fund for the period July 1, 2011, through January 31, 

2012, including an extraordinary loss of $27,392,100 related to the transfer of assets and liabilities upon 

dissolution. All assets and obligations of the Redevelopment Agency were transferred to either the El Cajon 

Housing Authority, for housing related assets and obligations, or the Successor Agency to the Former El Cajon 

Redevelopment Agency, for all other assets and obligations. 

B-8




Non-Major Governmental Funds. These funds are used to account for the proceeds of specific revenue sources 

that are legally restricted to expenditures for specified purposes. The total ending fund balances for these funds 

was approximately $8,905,800 at June 30, 2012. Comparing this amount to the prior year non-major 

governmental funds is not meaningful because the composition of the non-major funds changed significantly for 

fiscal year 2011-12. 

Proprietary funds. The City’s proprietary fund statements provide the same type of information found in the 

government-wide financial statements, but in more detail. 

Wastewater Enterprise Fund. This fund is used to account for activities where fees are charged to external 

users for wastewater services. Although expenses continued to outpace revenues, the difference is much 

smaller than in the prior fiscal year. Charges for Services revenues increased $1,927,100 (16.8%) in large part 

due to a rate increase implemented in January 2012. This was the first rate increase in twelve years. Overall, 

net assets decreased by $1,473,621. The ending unrestricted net assets of nearly $19,536,500 will be used to 

satisfy the $9,858,817 outstanding liability to San Diego Metro Wastewater as well as funding ongoing sewer 

activities and future capital needs. 

Wastewater Enterprise Fund: Revenues and Expenses 


Internal Service Funds. These funds are used to account for the financing of goods or services provided by one 

fund/department to another fund/department on a cost-reimbursement basis. Additionally, two internal service 

funds are used to accumulate resources for the replacement of vehicles, equipment and information technology. 

The internal service funds reported an increase of $1,757,680 in total net assets from the prior fiscal year. This 

increase is largely due to increased contributions to the Vehicle & Equipment Replacement and Information 

Technology Replacement funds this fiscal year. 

B-9

GENERAL FUND BUDGETARY HIGHLIGHTS 




The final budget anticipated General Fund revenues of $53,147,069, expenditures of $52,840,498, and other 

financing uses (transfers out) of $7,678,431. During the fiscal year there were several expenditure budget 

amendments as depicted in the following graphs. 

Actual revenues performed better than budgetary expectations by approximately $3,786,300. Property taxes 

benefitted from the distribution to Affected Taxing Entities resulting from redevelopment dissolution legislation. 

All other revenues appeared to have improved from the general improvement in the economy. 

Comparison of General Fund Revenues: Budget vs. Actual 


Expenditure budget amendments were adopted during the fiscal year increasing appropriations for general 

government, community development, and other financing uses. General government expenditures increased 

over the prior year for several reasons including the increased volume of vacation leave conversions due to the 

upcoming implementation of a vacation leave accrual limit and the reduction of compensated absences liability 

resulting from employee retirements. Additionally, a Human Resources Analyst position was placed back in the 

budget and costs related to the recruitment of a permanent City Manager contributed to the increased general 

government expenses this fiscal year. Other financing uses were increased when the City realized during the 

fiscal year that it would be able to contribute funding, that was not anticipated when the budget was adopted, to 

the vehicle and equipment replacement fund, information technology replacement fund, and City capital 

improvement program. 

The Budgetary Comparison Schedule showing more details of the General Fund original and final budgets can 

be found in the Required Supplementary Information section beginning on page F-1 of this report. 

B-10




Comparison of General Fund Expenditures: Budget vs. Actual 


CAPITAL ASSET AND DEBT ADMINISTRATION 

Capital assets. The City’s investment in capital assets as of June 30, 2012, totaled over $261,403,800, an 

approximate decrease of $4,605,600 from the prior year. Much of this decrease relates to the transfer of capital 

assets to the Successor Agency as a result of the dissolution of the El Cajon Redevelopment Agency. 

Construction in progress decreased significantly as the new public safety center was reclassified to buildings 

and improvements. As mentioned earlier, the El Cajon Police Department moved into the facility in August 

2011. Additional information on the City’s capital assets can be found in Note F beginning on page E-16 of this 

report. 

Capital Assets (net of depreciation) 



2012 2011 2012 2011 2012 2011 

Land $ 12,405,807 $ 14,009,227 $ 82,300 $ 82,300 $ 12,488,107 $ 14,091,527 

Rights of way 

Construction in 

31,190,652 31,190,652 - - 31,190,652 31,190,652 

Progress 620,517 61,595,250 498,856 558,844 1,119,373 62,154,094 

Land improvements 1,335,881 2,693,518 - - 1,335,881 2,693,518 

Buildings & improve. 70,759,672 13,739,936 202,250 209,474 70,961,922 13,949,410 

Machinery & equip. 

Interest in Mission 

6,948,578 3,596,117 1,066,633 1,222,880 8,015,211 4,818,997 

Gorge Mains - 8,646,943 8,830,921 8,646,943 8,830,921 

Infrastructure 90,329,933 90,774,128 37,315,842 37,506,293 127,645,775 128,280,421 

Total $213,591,040 $217,598,828 $ 47,812,824 $ 48,410,712 $261,403,864 $266,009,540 

B-11




Long-term debt. The City’s long term debt decreased substantially this fiscal year as a result of the dissolution 

of the El Cajon Redevelopment Agency. The tax allocation bonds are now an obligation of the Successor 

Agency, a private purpose trust fund, which is not considered a part of the financial reporting entity for the City 

of El Cajon and is not included in 2011-12 information in the following table. 

Long-Term Debt (net of unamortized premium or discount) 



2012 2011 2012 2011 2012 2011 

Compensated 

absences 7,114,719 $ 7,612,555 322,289 $ 314,987 7,437,008 $ 7,927,542 

Claims payable 1,712,337 1,586,000 - - 1,712,337 1,586,000 

Tax allocation bonds - 65,206,839 - - - 65,206,839 

Revenue bonds 25,644,158 25,772,488 - - 25,644,158 25,772,488 

Notes payable 

Obligation due to SD 

451,000 508,000 - - 451,000 508,000 

Metro Wastewater - - 9,858,817 11,038,654 9,858,817 11,038,654 

Total 34,922,214 $100,685,882 10,181,106 $11,353,641 45,103,320 $112,039,523 

The obligation to San Diego Metro Wastewater was reduced to $9,858,817 as the result of continuing 

negotiations. Claims payable increased based upon the most recent biennial actuarial evaluation of the City’s 

self-insurance fund. 

Additional information on the City’s long-term debt can be found in Note I beginning on page E-19 of this report. 

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET 

The following factors were considered when preparing the City’s general fund budget for fiscal year 2012-13: 

• The USD Index of leading economic indicators recorded positive monthly increases between May 2011 and 

March 2012. The pace has been very slow, but steady. But the good news is countered by possible 

negative developments, including international economic concerns and the continuing fiscal problems at all 

levels of government. 

• The dissolution of the Redevelopment Agency resulted in the shifting of some expenses to the General 

Fund. The nature, timing, and extent of this shift is not fully known. 

• The fiscal year 2012-13 general fund budget expected revenues to increase modestly, 1.8%, over the 

estimated actual revenues for fiscal year 2011-12 at the time of budget adoption. 

• The General Fund expenditure budget for fiscal year 2012-13 reflects a $4,386,613 decrease from the fiscal 

year 2011-12 estimated actual expenditures at the time the budget was adopted reflecting a reduction in 

contributions to the internal service funds and capital projects. 

B-12

REQUESTS FOR INFORMATION 




This Comprehensive Annual Financial Report is intended to provide citizens, taxpayers, investors, and creditors 

with a general overview of the City’s finances. If you have any questions about this report, need additional 

financial information, or would like to obtain Redevelopment Agency financial statements, contact the City of El 

Cajon Finance Department, 200 Civic Center Way, El Cajon, CA 92020, (619) 441-1721 or visit the City’s web 

site at www.cityofelcajon.us. 

B-13

B‐14



June 30, 2012 

(With Prior Year Data for Comparison Purposes Only) 

Governmental Business-type 

Totals 

Activities Activities 2012 2011 

Assets: 

Cash and investments (note C) $ 63,910,256 $ 17,953,012 $ 81,863,268 $ 91,248,520 

Cash and investments with fiscal agent (note C) 

Receivables: 

2,639,328 - 2,639,328 9,394,924 

Accounts, net of allowance for bad debt (note D) 828,241 2,268,991 3,097,232 2,425,667 

Interest 131,574 40,320 171,894 255,935 

Taxes 3,839,071 1,724 3,840,795 3,714,381 

Intergovernmental 1,084,730 146,780 1,231,510 1,228,286 

Loans (note E) 23,535,047 - 23,535,047 20,366,347 

Prepaid items 735,338 

- 

735,338 499,319 

Deposits - 

- 

- 4,262,919 

Prepaid capital asset - 

- 

- 600,679 

Land held for resale 

Capital assets, not being depreciated (note F): 

- 

- 

- 20,039,418 

Land 12,405,807 

82,300 12,488,107 14,091,527 

Rights of way 31,190,652 

- 31,190,652 31,190,652 

Construction in progress 

Capital assets, being depreciated, net (note F): 

620,517 498,856 1,119,373 62,154,094 

Land improvements 1,335,881 

- 1,335,881 2,693,518 

Buildings and improvements 70,759,672 202,250 70,961,922 13,949,410 

Machinery and equipment 6,948,578 1,066,633 8,015,211 4,818,997 

Interest in Mission Gorge Mains - 8,646,943 8,646,943 8,830,921 

Infrastructure 90,329,933 37,315,842 127,645,775 128,280,421 

Unamortized bond issuance cost 207,191 

- 

207,191 667,616 

Total assets 310,501,816 68,223,651 378,725,467 420,713,551 

Liabilities: 

Accounts payable 2,121,439 443,166 2,564,605 4,977,065 

Accrued liabilities 1,401,838 - 1,401,838 2,085,447 

Arbitrage rebate payable - 

- 

- 

26,812 

Deposits payable 305,843 108,786 414,629 414,481 

Unearned revenue 114,564 - 

114,564 111,981 

Accrued interest payable 

Long-term liabilities (note I): 

424,389 - 

424,389 1,265,355 

Due within one year 

Due in more than one year, 

5,332,094 80,572 5,412,666 3,824,190 

net of unamortized discount or premium 29,590,120 10,100,534 39,690,654 108,215,333 

Total liabilities 39,290,287 10,733,058 50,023,345 120,920,664 

Net assets: 

Invested in capital assets, net of related debt 

Restricted for: 

187,945,040 37,954,007 225,899,047 222,217,887 

Public safety facility project fund 17,539,456 - 17,539,456 14,918,040 

Public safety 1,897,573 - 1,897,573 1,309,403 

Public works 3,180,395 - 3,180,395 2,158,846 

Parks and recreation 417,965 - 

417,965 399,981 

Community development 1,126,652 - 1,126,652 11,301,234 

Redevelopment activities - 

- 

0 23,707,342 

Debt service 2,639,328 - 2,639,328 6,364,058 

Unrestricted 56,465,120 19,536,586 76,001,706 17,416,096 

Total net assets $ 271,211,529 $ 57,490,593 $ 328,702,122 $ 299,792,887 

The accompanying notes are an integral part of these financial statements. 

C-1


Statement of Activities 


(With Prior Year Data For Comparison Purposes Only) 

Program Revenues 

Operating 

Charges for Grants and 

Functions/Programs: 

Governmental activities: 

Expenses Services Contributions 

General government $ 7,696,562 $ 1,175,685 $ 7,000 

Public safety 38,633,076 4,758,621 1,847,184 

Public works 11,680,268 1,303,160 3,302,719 

Parks and recreation 4,697,831 677,070 

4,573 

Community development 8,922,132 1,128,417 4,103,498 

Interest on long-term debt 3,033,459 

- 

- 

Total government activities 74,663,328 

Business-type activities: 

Wastewater 16,398,495 

Total business-type activities 16,398,495 

9,042,953 

13,382,226 

13,382,226 

9,264,974 

Total $ 91,061,823 $ 22,425,179 $ 9,264,974 

General revenues: 

Taxes 

Property taxes 

Sales taxes 

Franchise taxes 

Transient lodging taxes 

Business license taxes 

Intergovernmental (unrestricted) 

Investment earnings 

Other 

Special item - net gain on sale of properties 

Extraordinary gain - net transfer of assets of former 

Redevelopment Agency 

Transfers 

Total general revenues and transfers 

Change in net assets 

Net assets, beginning 

Net assets, ending 


C-2 

- 

-

Net (Expenses) Revenues and 

Changes in Net Assets 

Capital 

Grants and Governmental Business-type 

Totals 

Contributions Activities Activities 2012 2011 

$ - $ (6,513,877) $ - $ (6,513,877) $ (5,372,434) 

7,838,872 (24,188,399) 

- (24,188,399) (23,402,802) 

1,257,104 (5,817,285) 

- (5,817,285) (3,463,313) 

12,398 (4,003,790) 

- (4,003,790) (3,890,599) 

287,810 (3,402,407) 

- (3,402,407) (3,019,432) 

- (3,033,459) 

- (3,033,459) (4,426,180) 

9,396,184 

- 

- 

(46,959,217) 

$ 9,396,184 (46,959,217) 

- 

- 

27,082,113 

22,466,903 

4,721,291 

1,046,237 

747,522 

- 

299,103 

745,817 

- 

20,227,405 

5,682 

77,342,073 

30,382,856 

240,828,673 

- 

(3,016,269) 

(3,016,269) 

(3,016,269) 

- 

- 

- 

- 

- 

- 

82,552 

1,465,778 

- 

- 

(5,682) 

1,542,648 

(1,473,621) 

58,964,214 

(46,959,217) 

(3,016,269) 

(3,016,269) 

(49,975,486) 

27,082,113 

22,466,903 

4,721,291 

1,046,237 

747,522 

- 

381,655 

2,211,595 

- 

20,227,405 

- 

78,884,721 

28,909,235 

299,792,887 

(43,574,760) 

(3,957,453) 

(3,957,453) 

(47,532,213) 

28,873,349 

22,278,251 

5,163,453 

900,298 

751,196 

502,955 

394,820 

737,080 

2,167,485 

- 

- 

61,768,887 

14,236,674 

285,556,213 

$ 271,211,529 $ 57,490,593 $ 328,702,122 $ 299,792,887 


C-3

C-4

D-1


Balance Sheet 

Governmental Funds 

June 30, 2012 

Redevelopment Housing 

Assets: 

General HOME Agency Authority 

Cash and investments (note C) $ 16,695,054 $ - $ - $ 5,896,436 

Cash and investments with fiscal agent (note C) 

Receivables: 

- 

- 

- 

- 

Accounts (note D) 348,299 

- 

- 

- 

Interest 82,436 

- 

- 

4,301 

Taxes 3,280,652 

- 

- 

- 

Intergovernmental 231,538 19,565 

- 

- 

Loans (note E) 3,062,497 9,489,738 

- 10,122,299 

Due from other funds (note H) 143,977 

- 

- 

- 

Prepaid items 1,625 

- 

- 

- 

Total assets $ 23,846,078 $ 9,509,303 $ - $ 16,023,036 

Liabilities: 

Accounts payable $ 457,855 $ 407 $ - $ 427,812 

Accrued liabilities 1,288,842 

507 

- 

2,031 

Due to other funds (note H) - 11,190 

- 

- 

Deposits 260,460 

- 

- 

- 

Deferred revenue (note G) 3,063,554 61,272 

- 599,068 

Total liabilities 5,070,711 73,376 

- 1,028,911 

Fund balance 

Restricted: 

Animal shelter - 

Animal shelter project - 

Community development - 

Debt service - 

Loans receivable (note E) - 

Public safety - 

Public works project - 

RTCIP impact fee - 

Streets projects - 

Committed 

Assigned: 

10,003,509 

Capital projects - 


Emergency medical services - 

Recreation programs - 

SB 90 disallowed costs 1,850,474 

Unfunded retirement obligations 3,520,000 

Unassigned 3,401,384 

Total fund balance 18,775,367 

- 

- 

7,461 

- 

9,428,466 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

9,435,927 

Special Revenue 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

5,470,894 

- 

9,523,231 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

14,994,125 

Total liabilities and fund balance $ 23,846,078 $ 9,509,303 $ - $ 16,023,036 


D-2

Debt Service 

Capital Projects 

Emergency Total 

Medical Redevelopment City Capital Public Safety Redevelopment Governmental 

Service Agency Improvement Facility Project Agency Non-Major Funds 

$ - $ - $ 7,170,446 $ 17,700,270 $ - $ 5,121,364 $ 52,583,570 

- 

- 

- 

- 

- 2,639,328 2,639,328 

443,200 

1,501 

2,298 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

5,542 

39,018 

529,600 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

31,200 

5,819 

27,318 

831,329 

807,150 

- 

- 

828,241 

131,574 

3,839,071 

1,084,730 

23,481,684 

143,977 

1,625 

$ 446,999 $ - $ 7,170,446 $ 18,274,430 $ - $ 9,463,508 $ 84,733,800 

$ 23,580 $ - $ 29,918 $ 733,573 $ - $ 224,281 $ 1,897,426 

67,349 

- 

- 

1,401 

- 41,708 1,401,838 

- 

- 

- 

- 

- 132,787 143,977 

- 

- 

- 

- 

- 45,383 305,843 

- 

- 

- 

- 113,506 3,837,400 

90,929 

- 29,918 734,974 

- 557,665 7,586,484 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

356,070 

- 

- 

- 

- 

356,070 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

7,140,528 

- 

- 

- 

- 

- 

- 

7,140,528 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

17,539,456 

- 

- 

- 

- 

- 

- 

17,539,456 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

35,000 

236,244 

320,022 

2,639,328 

807,150 

1,269,739 

129,599 

118,091 

2,932,705 

- 

41,688 

- 

- 

376,277 

- 

- 

- 

8,905,843 

35,000 

236,244 

5,798,377 

2,639,328 

19,758,847 

1,269,739 

129,599 

118,091 

2,932,705 

10,003,509 

24,721,672 

- 

356,070 

376,277 

1,850,474 

3,520,000 

3,401,384 

77,147,316 

$ 446,999 $ - $ 7,170,446 $ 18,274,430 $ - $ 9,463,508 $ 84,733,800 


D-3


Reconciliation of the Balance Sheet of Governmental Funds 

to the Statement of Net Assets 


June 30, 2012 

Fund balances of governmental funds (page D-3) $ 77,147,316 

Amounts reported for governmental activities in the statement of net assets are 

different because: 

Capital assets, net of depreciation used in governmental activities are 

not financial resources and, therefore, are not reported in the funds. 

Capital assets 314,878,444 

Accumulated depreciation (104,049,804) 

Prepaid expense (net OPEB asset) that are expended in governmental funds 

when paid and are recorded as an asset for the purposes of the statement 

of net assets. 733,713 

Long-term debt and compensated absences that have not been included in the 

governmental fund activity: 

Bonds payable (25,195,000) 

Notes payable (451,000) 

Compensated absences (6,971,366) 

Bond discount and bond issuance costs are expended in governmental funds when 

paid and are capitalized and amortized over the life of the corresponding bonds 

for purposes of the statement of net assets. 

Bond issuance cost 207,191 

Bond premium (449,158) 

Accrued interest payable for the current portion of interest due on bonds payable 

has not been reported in the governmental funds. (424,389) 

Certain accounts and intergovernmental receivables are not available to pay for 

current period expenditures and, therefore, are offset by deferred revenue 

in governmental funds. 3,776,199 

Internal service funds are used by management to charge costs to individual funds. 

The assets and liabilities of the internal service funds are included in 

governmental activities in the statement of net assets: 

Capital assets 9,288,734 

Accumulated depreciation (6,526,334) 

Compensated absences (143,353) 

Claims payable (1,712,337) 

Other assets and liabilities 11,102,673 

Net assets of governmental activities (page C-1) $ 271,211,529 


D-4

D-5


Statement of Revenues, Expenditures and Changes in Fund Balances 



Redevelopment Housing 

General HOME Agency Authority 

Revenues: 

Taxes $ 48,172,176 $ - $ 1,578,378 $ - 

Intergovernmental 671,105 2,261,308 

- 

- 

Licenses and permits 927,820 

- 

- 

- 

Charges for services 2,706,066 

- 

- 

- 

Investment earnings 245,740 

- 29,050 24,645 

Other 4,210,504 

680 25,410 51,006 

Total revenues 56,933,411 

Expenditures: 

Current: 

General government 7,446,595 

Public safety 33,873,404 

Public works 3,579,209 

Parks and recreation 3,923,253 

Community development 1,817,671 

Capital outlay 

Debt service: 

- 

Principal - 

Interest and fiscal charges - 

Total expenditures 50,640,132 

Excess (deficiency) of revenues 

over (under) expenditures 6,293,279 

Other financing sources (uses): 

Transfers in 218,206 

Transfers out (7,815,213) 

Total other financing sources (uses) (7,597,007) 

Extraordinary loss - 

Net change in fund balances (1,303,728) 

Fund balances, beginning 20,079,095 

Prior period adjustment (note Q) - 

Fund balances, beginning as restated 20,079,095 

2,261,988 

- 

- 

- 

- 

291,937 

- 

- 

- 

291,937 

1,970,051 

- 

- 

- 

- 

1,970,051 

7,465,876 

- 

7,465,876 

1,632,838 

- 

- 

- 

- 

387,304 

- 

- 

- 

387,304 

1,245,534 

- 

(19,748,781) 

(19,748,781) 

(4,922,046) 

(23,425,293) 

23,707,342 

(282,049) 

23,425,293 

75,651 

- 

- 

- 

- 

168,080 

4,251,309 

- 

- 

4,419,389 

(4,343,738) 

19,337,863 

- 

19,337,863 

- 

14,994,125 

Fund balances, ending $ 18,775,367 $ 9,435,927 $ - $ 14,994,125 


D-6 

Special Revenue 

- 

- 

-

Debt Service 

Capital Projects 

Emergency Total 

Medical Redevelopment City Capital Public Safety Redevelopment Governmental 

Service Agency Improvement Facility Project Agency Non-Major Funds 

$ 377,558 $ 6,313,512 $ - $ 7,674,879 $ - $ 1,259,212 $ 65,375,715 

- 

- 

- 

- 

93,111 5,452,391 8,477,915 

- 

- 

- 

- 

- 

- 927,820 

2,773,417 

- 

- 

- 

- 769,385 6,248,868 

- 

(16,847) 

- 

62,718 

(1,452) 43,362 387,216 

4,753 

- 155,619 

79,764 

40,531 479,634 5,047,901 

3,155,728 

- 

4,265,640 

- 

- 

- 

- 

- 

- 

4,265,640 

(1,109,912) 

1,266,348 

- 

1,266,348 

- 

156,436 

199,634 

- 

199,634 

6,296,665 

- 

- 

- 

- 

1,557,879 

- 

1,305,000 

1,708,769 

4,571,648 

1,725,017 

396,203 

(1,209,248) 

(813,045) 

(4,658,214) 

(3,746,242) 

3,746,242 

- 

3,746,242 

155,619 

- 

- 

- 

- 

- 

1,299,786 

- 

- 

1,299,786 

(1,144,167) 

5,344,836 

(19,543) 

5,325,293 

- 

4,181,126 

2,959,402 

- 

2,959,402 

7,817,361 

- 

- 

- 

- 

- 

4,187,545 

- 

- 

4,187,545 

3,629,816 

- 

(1,008,400) 

(1,008,400) 

- 

2,621,416 

14,918,040 

- 

14,918,040 

132,190 

- 

- 

- 

- 

1,057,743 

2,214,129 

- 

- 

3,271,872 

(3,139,682) 

1,209,248 

(93,528) 

1,115,720 

(27,392,182) 

(29,416,144) 

29,416,144 

- 

29,416,144 

8,003,984 

- 

319,124 

1,974,692 

503,489 

625,702 

2,044,845 

57,000 

1,034,044 

6,558,896 

1,445,088 

2,663,830 

(2,647,492) 

16,338 

- 

1,461,426 

7,162,368 

282,049 

7,444,417 

86,465,435 

7,446,595 

38,458,168 

5,553,901 

4,426,742 

5,906,316 

13,997,614 

1,362,000 

2,742,813 

79,894,149 

6,571,286 

30,436,534 

(32,542,205) 

(2,105,671) 

(36,972,442) 

(32,506,827) 

109,654,143 

- 

109,654,143 

$ 356,070 $ - $ 7,140,528 $ 17,539,456 $ - $ 8,905,843 $ 77,147,316 


D-7


Reconciliation of the Statement of Revenues, Expenditures and Changes in 

Fund Balances of Governmental Funds to the Statement of Activities 



Net changes in fund balances - total governmental funds (page D-7) $ (32,506,827) 

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

Governmental funds report capital outlays as expenditures. However, in the statement of 

activities the cost of these assets are allocated over their estimated useful lives and 

reported as depreciation expense. This is the amount by which capital outlays 

excluding the internal service funds exceeded depreciation in the current period. 

Capital outlay 9,095,089 

Depreciation expense (6,202,759) 

Some expenses reported in the statement of activitites do not require the use of 

current financial resources and, therefore, are not reported as expenditures in 

governmental funds. 234,394 

Issuance of long-term debt including bond premium and issuance costs are 

recorded as expenditures in the governmental funds. However, in the statement of 

activities the debt incurred is recorded as a liability; the bond premium and 

issuance costs are amortized over the life of the bond. 

Bond premium 128,330 

Bond discount (25,973) 

Bond issuance costs (97,135) 

Repayment of principal is an expenditure in the governmental funds, but the repayment 

reduces long-term liabilities in the statement of net assets. 

Bond payable 1,305,000 

Notes payable 57,000 

Governmental funds reported the transfer of fund balance due to dissolution of Redevelopment 

Agencies in accordance with State law on January 31, 2012 as an extraordinary loss. 

However, the extraordinary loss did not include the transfer of assets and liabilities that 

were previously reported as revenues and expenditures in the governmental funds. 

Non-housing capital assets, net of accumulated depreciation (7,594,378) 

Unamortized bond issuance cost (363,290) 

Long-term liabilities, net of unamortized bond discount 

Tax allocation bonds, net of unamortized bond discount 63,927,812 

Compensated absences 92,869 

Interest payable 1,136,834 

The statement of net assets includes accrued interest on long term debt. (295,868) 

Revenues that are measurable but not available are recorded as deferred 

revenue under the modified accrual basis of accounting. (736,076) 


D-8


Reconciliation of the Statement of Revenues, Expenditures and Changes in 

Fund Balances of Governmental Funds to the Statement of Activities 

Governmental Funds (continued) 


Compensated absences reported in the statement of activities do not require the use of 

current financial resources and, therefore, are not reported as expenditures in the 

governmental funds. $ 416,791 

The statement of net assets includes accrued interest on loans receivable. 53,363 

Internal service funds are not governmental funds. However, they are used by 

management to charge the net costs of certain activities such as insurance, vehicle 

maintenance and replacement, information technology replacement to individual 

governmental funds. The net expense of the internal service funds is reported with 

governmental activities. 1,757,680 

Changes in net assets of governmental activities (page C-3) $ 30,382,856 


D-9

Assets: 

Current assets: 



Proprietary Funds 

June 30, 2012 

Business-type Activity 

Enterprise Fund 

Governmental Activities 

Wastewater Internal Service Funds 

Cash and investments (note C) 

Receivables: 

$ 17,953,012 $ 11,326,686 

Accounts, net of allowance for bad debt (note D) 2,268,991 

- 

Intergovernmental 146,780 

- 


- 

Taxes 1,724 

- 

Total current assets 20,410,827 

11,326,686 

Non-current assets: 

Capital assets, not being depreciated (note F): 

Land 82,300 

Construction in progress 

Capital assets, being depreciated, net (note F): 

498,856 

Buildings and improvements 202,250 

Machinery and equipment 1,066,633 

Interest in Mission Gorge Mains 8,646,943 

Infrastructure 37,315,842 

Total non-current assets 47,812,824 

Total assets 68,223,651 

Liabilities: 

Current liabilities: 

Accounts payable 443,166 

Deposits payable 108,786 

Claims payable-current (note M) - 

Compensated absences payable (note I) 80,572 

Total current liabilities 632,524 

Long-term liabilities: 

Claims payable (note M) - 

Compensated absences payable (note I) 241,717 

SD Metro Wastewater (note I) 9,858,817 

Total long-term liabilities 10,100,534 

Total liabilities 10,733,058 

Net assets: 

Invested in capital assets, net of related debt 37,954,007 

Unrestricted 19,536,586 

- 

- 

- 

2,762,400 

- 

- 

2,762,400 

14,089,086 

224,013 

- 

500,000 

35,838 

759,851 

1,212,337 

107,515 

- 

1,319,852 

2,079,703 

2,762,400 

9,246,983 

Total net assets $ 57,490,593 $ 12,009,383 


D-10


Statement of Revenues, Expenses and Changes in Fund Net Assets 





Wastewater 


Internal Service Funds 

Operating revenues: 

Charges for services $ 13,370,880 $ 

5,211,294 


- 

Fines 4,746 

- 

Total operating revenues 13,382,226 

Operating expenses: 

Salaries and benefits 2,857,867 

Materials, services and supplies 11,841,839 

Insurance claims/premiums - 

Depreciation 1,698,789 

Total operating expenses 16,398,495 

Operating income (loss) (3,016,269) 

Non-operating revenues (expenses): 


Other revenue 1,482,849 

Gain (loss) on disposal of assets (17,071) 

Total non-operating revenues (expenses) 1,548,330 

Income (loss) before capital contributions 

and transfers (1,467,939) 

Transfers: 

Transfers in - 

Transfers out (5,682) 

Total capital contributions and transfers (5,682) 

Change in net assets (1,473,621) 

Net assets, beginning 58,964,214 

5,211,294 

1,861,642 

2,296,196 

971,336 

551,245 

5,680,419 

(469,125) 

- 

91,574 

23,878 

115,452 

(353,673) 

2,111,353 

- 

2,111,353 

1,757,680 

10,251,703 

Net assets, ending $ 57,490,593 $ 12,009,383 


D-11


Statement of Cash Flows 





Wastewater 



Cash flows from operating activities: 

Receipts from customers and charges to other funds $ 12,844,836 $ 

5,211,294 

Payments to suppliers (11,811,686) 

(3,086,334) 

Payments to employees (2,850,565) 

(1,871,185) 

Net cash provided by (used for) operating activities (1,817,415) 

253,775 

Cash flows from noncapital financing activities: 

Transfer in from other funds - 

Other revenue 29,408 

Net cash provided by noncapital financing activities 29,408 

Cash flows from capital and related financing activities: 

Acquisitions of infrastructure, machinery and equipment (973,664) 

Proceeds from sale of vehicles and equipment 7,875 

Net cash provided by (used for) capital 

and related financing activities (965,789) 

Cash flows from investing activities: 

Interest and dividends received 96,378 

Net cash provided by investing activities 96,378 

Net increase (decrease) in cash 

and cash equivalents (2,657,418) 

Cash and cash equivalents - July 1 20,610,430 

2,111,353 

91,574 

2,202,927 

(665,696) 

44,747 

(620,949) 

- 

- 

1,835,753 

9,490,933 

Cash and cash equivalents - June 30 $ 17,953,012 $ 11,326,686 

Reconciliation of operating income (loss) to net cash 

provided by (used for) operating activities: 

Operating income (loss) 

Adjustments to reconcile operating income (loss) to 

net cash provided by (used for) operating activities: 

$ (3,016,269) $ 

(469,125) 

Depreciation expense 

Changes in assets and liabilities: 

(Increase) in accounts receivable, net of 

1,698,789 

551,245 

allowance for bad debt (583,411) 

- 

Decrease in taxes receivable 4,864 

- 

Increase in accounts payable 30,153 

33,494 

Increase in deposits payable 41,157 

- 

Increase in claims payable - 

126,337 

Increase in compensated absences payable 7,302 

11,824 

Total adjustments 1,198,854 

722,900 

Net cash provided by (used for) operating activities $ (1,817,415) $ 

253,775 

Noncash investing,capital, and financing activities: 

Loss on disposal of sewer infrastructure $ 24,946 $ 

- 


D-12


Statement of Fiduciary Net Assets 

Fiduciary Funds 

June 30, 2012 

Agency 

Successor 

Agency to the 

El Cajon 

Redevelopment 

Funds Agency Total 

Assets: 

Cash and investments $ 746,018 $ 13,037,412 $ 13,783,430 

Cash with fiscal agent 

Receivables: 

- 6,460,257 

6,460,257 

Accounts 318,821 

54,239 

373,060 


1,914 

3,987 

Loans - 4,880,724 

4,880,724 

Prepaid expenses 502 

- 

502 

Land held for resale 

Capital assets: 

- 20,039,418 20,039,418 

Land and nondepreciable capital assets - 1,753,823 

1,753,823 

Depreciable assets, net - 5,789,536 

5,789,536 

Unamortized bond issuance cost - 

357,335 

357,335 

Total assets $ 1,067,414 $ 52,374,658 $ 53,442,072 

Liabilities: 

Accounts payable $ 33,717 $ 5,873,290 $ 5,907,007 

Accrued liabilities 37,696 

- 

37,696 

Interest payable - 

800,684 

800,684 

Deposits payable - 

2,000 

2,000 

Deferred revenue 479,800 

- 

479,800 

Long-term debt - 67,101,731 67,101,731 

Sundry agency liabilities 516,201 

- 

516,201 

Total liabilities $ 1,067,414 73,777,705 

74,845,119 

Net assets: 

Held in trust for Successor Agency to the 

El Cajon Redevelopment Agency $ (21,403,047) $ (21,403,047) 


D-13

City of El Cajon 

Statement of Changes in Fiduciary Net Assets 

Private Purpose Trust Fund 

For the period from inception, February 1, 2012, through June 30, 2012 

Successor Agency 

to the Former El Cajon 

Redevelopment Agency 

ADDITIONS: 

Property taxes $ 4,227,883 



Others 73,916 

Total additions 4,366,111 

DEDUCTIONS: 

Administrative expenses 101,514 

Program expenses of former redevelopment agency 193,011 

Payments to affected taxing entities 3,876,651 

Interest and fiscal agency expenses of former redevelopment agency 1,450,577 

Total deductions 5,621,753 

Extraordinary loss (20,227,405) 


Net assets (deficit), beginning - 

Net assets (deficit), ending $ (21,483,047) 


D-14


NOTES TO THE BASIC FINANCIAL STATEMENTS 


NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

The financial statements of the City of El Cajon have been prepared in conformity with generally accepted accounting 

principles in the United States of America as applied to governmental units. The Governmental Accounting Standards 

Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting 

principles. The more significant of the City's accounting policies are described below. 

1. Reporting entity 

The City of El Cajon (City), which was established on November 12, 1912, is a legal subdivision of the State of California 

charged with governmental powers. The City’s powers are exercised through a five member City Council which serves 

as its governing body. As required by generally accepted accounting principles in the United States of America (GAAP), 

the accompanying financial statements present the activities of the City (the primary government) and its component 

units. The component units discussed below are included in the City’s reporting entity because of the significance of 

their operational and financial relationships with the City. 

2. Component units 

Because of their relationship with the City and the nature of their operations, component units are, in substance, part of 

the City’s operations and, accordingly, the activities of these component units are blended with the activities of the City 

for purposes of reporting in the accompanying basic financial statements. While each of these component units is 

legally separate from the City, the City is financially accountable for these entities. Financial accountability is 

demonstrated by the City Council acting as the governing board for each of the component units. 

Unless otherwise noted, additional detailed information and/or separately issued financial statements of the City’s 

component units can be obtained from the City of El Cajon Finance Department located at 200 Civic Center Way, El 

Cajon, CA 92020. 

Descriptions of the City’s blended component units are as follows: 

El Cajon Redevelopment Agency 

The El Cajon Redevelopment Agency (Redevelopment Agency) was formed in November 1971 pursuant to the 

California Community Redevelopment Laws, and was broadly empowered to engage in the general economic 

revitalization and redevelopment of property in the project area that is determined to be in declining condition. Pursuant 

to provisions of the Redevelopment Restructuring Act, the Redevelopment Agency was dissolved effective February 1, 

2012. All non-housing assets and obligations of the Redevelopment Agency were transferred to the Successor Agency 

to the Former El Cajon Redevelopment Agency. All housing assets and obligations were transferred to the El Cajon 

Housing Authority. 

El Cajon Housing Authority 

The City Council adopted Resolution No. 32-11 on March 9, 2011, declaring the need for the El Cajon Housing Authority 

(Housing Authority), pursuant to Health and Safety Code Section 34200 et. seq. The City Council serves as the 

Commissioners of the Housing Authority. On January 24, 2012, the Commissioners appointed certain City staff to serve 

as officials of the Housing Authority, and authorized the Housing Authority to accept the housing assets and enforceable 

obligations from the former Redevelopment Agency. 

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NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 

2. Component units (continued) 

El Cajon Public Financing Authority 

The El Cajon Public Financing Authority (ECPFA) is a joint powers authority, organized pursuant to a Joint Exercise of 

Powers Agreement (JPA Agreement), dated as of November 9, 2004, between the City and the former Redevelopment 

Agency. The JPA Agreement was entered into pursuant to the California Government Code, commencing with Section 

6500. The Authority is a separate entity constituting a public instrumentality of the State of California and was formed 

for the public purpose of aiding the financing of projects for the City and the former Redevelopment Agency. A fivemember 

Board governs the Authority. The City’s council members constitute the Board of the Authority. 

The following entity is not considered a component unit of the City of El Cajon. 

Successor Agency to the Former El Cajon Redevelopment Agency 

The Successor Agency to the Former El Cajon Redevelopment Agency (Successor Agency) operates under the 

auspices of a legislatively formed Oversight Board comprised of representatives of the affected taxing entities of the 

redevelopment project area. The Oversight Board, in its fiduciary capacity, has authority over the operations and the 

timely dissolution of the former Redevelopment Agency. It is tasked with fulfilling the obligations of the former 

Redevelopment Agency, including but not limited to maintaining necessary bond reserves and disposing of excess 

property. See Note B for further information. 

3. Basic financial statements 

The City’s basic financial statements are prepared in conformity with accounting principles generally accepted in the 

United States of America. The Government Accounting Standards Board is the acknowledged standard setting body for 

establishing accounting and financial reporting standards followed by governmental entities in the United States of 

America. 

Beginning with fiscal year 2010-11, the City has adopted the provision of Governmental Accounting Standards Board 

Statement 54, Fund Balance Reporting and Governmental Fund Type Definitions. This Statement defines the different 

types of fund balances that a governmental entity must use for financial reporting purposes as follows: 

Nonspendable – Amounts that cannot be spent because they are either (a) not in a spendable form; or (b) legally or 

contractually required to be maintained intact. 

Restricted – Amounts that have constraints placed on the use of resources that are either (a) externally imposed by 

creditors, grantors, contributors, or laws or regulations of other 

governments; or (b) imposed by law through constitutional provisions or enabling legislation. 

Committed – Amounts that can only be used for the specific purpose determined by a formal action of the City Council. 

The City Council has authority to establish, modify, or rescind a fund balance commitment. 

Assigned – Amounts that are constrained by government’s intent to be used for a specific purpose, but that are neither 

restricted nor committed. Such intent needs to be established at either the highest level of decision making, or by an 

official designated for that purpose. 

E-2





3. Basic financial statements (continued) 

Unassigned – Residual amount in the general fund after identifying and classifying all the other categories listed above. 

Only the general fund will have unassigned fund balance. 

Government-Wide Statements 

The statement of net assets and the statement of activities display information about the primary government (the City) 

and its blended component units. These statements include the financial activities of the overall City government, 

except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. 

However, interfund services provided and used are not eliminated in the process of consolidation. These statements 

distinguish between the governmental and business-type activities of the City. Governmental activities generally are 

financed through taxes, intergovernmental revenues, and other non-exchange transactions. Business-type activities are 

financed in whole or in part by fees charged to external parties. 

The statement of activities presents a comparison between direct expenses and program revenues for each segment of 

the business-type activities of the City and for each function of the City’s governmental activities. Direct expenses are 

those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular 

function. Included in direct expenses are certain incidental indirect costs. These indirect costs are not reported 

separately and, as such, are included as part of the program expense reported for the individual functions and activities. 

Program revenues include (a) charges paid by the recipients of goods or services offered by the programs, (b) grants 

and contributions that are restricted to meeting the operational needs of a particular program and (c) fees, grants and 

contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not 

classified as program revenues, including all taxes, are presented as general revenues. 

Fund Financial Statements 

The fund financial statements provide information about the City’s funds, including fiduciary (agency) funds and blended 

component units. Separate statements for each fund category-governmental, proprietary, and fiduciary-are presented. 

The emphasis of fund financial statements is on major individual governmental and enterprise fund, each of which is 

displayed in a separate column. All remaining governmental funds are aggregated and reported as non-major funds. 

Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with 

the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially 

equal values. Non-operating revenues, such as subsidies and investment earnings, result from non-exchange 

transactions or ancillary activities. 

Major Funds 

The City’s major governmental and business-type funds are presented separately in the fund financial statements. All 

other funds, called non-major funds, are combined and reported in a single column, regardless of fund-type. 

Major governmental funds are defined as funds that meet both of the following criteria: 

Ten percent criterion – Any governmental fund that reports at least 10 percent of any of the following: total 

governmental fund assets; total governmental fund liabilities; total governmental fund revenues; or total governmental 

fund expenditures. 

E-3






Five percent criterion – Any individual governmental fund that reports at least 5 percent of the total for both 

governmental and enterprise funds of any one of the items for which it met the 10 percent criterion above. 

The City reported the following major governmental funds in the accompanying financial statements: 

General Fund. The General Fund is always a major fund. This is the City’s primary operating fund. This fund accounts 

for all financial resources except those required to be accounted for in another fund. The fund will continue to exist 

indefinitely. 

HOME Program Special Revenue Fund. This fund accounts for federal grants to support local affordable housing 

initiatives under the HOME Investment Partnership Program. 

El Cajon Redevelopment Agency Special Revenue Fund. This fund accounts for the monies to be utilized in housing set 

aside funds received from redevelopment tax increment of 20% for the purpose of developing low to moderate income 

housing. Pursuant to the Redevelopment Restructuring Act (ABx1 26) the Redevelopment Agency was dissolved on 

January 31, 2012. 

El Cajon Housing Authority Special Revenue Fund. This fund accounts for the housing enforceable obligations of the 

former El Cajon Redevelopment Agency for the purpose of developing low to moderate income housing. 

Emergency Medical Services Special Revenue Fund. This fund accounts for paramedic services which are primarily 

funded by service charges and fixed tax assessments. 

El Cajon Redevelopment Agency Debt Service Fund. This fund accounts for monies for the payment of Agency longterm 

obligations which are financed by tax increment and lease revenues. Pursuant to the Redevelopment 

Restructuring Act (ABx1 26) the Redevelopment Agency was dissolved on January 31, 2012. 

City Capital Improvement Program Capital Project Fund. This fund accounts for monies to be utilized for the repair, 

improvement, and preservation of City owned facilities and equipment, additional public buildings, and the acquisition of 

land. 

Public Safety Facilities Capital Project Fund. This fund accounts for monies to be utilized for construction of public 

safety facilities throughout the City. 

El Cajon Redevelopment Agency Capital Projects Fund. This fund accounts for monies to be utilized for construction or 

acquisition of public improvements of the Redevelopment Agency. Pursuant to the Redevelopment Restructuring Act 

(ABx1 26) the Redevelopment Agency was dissolved on January 31, 2012. 

The City reports the following major enterprise fund: 

Wastewater. This fund primarily accounts for the sanitary sewer disposal and maintenance of the City’s sewer lines and 

related facilities. It is a self-supporting activity that provides services on a user charge basis to residences and 

businesses. 

E-4






The City also reports the following fund types: 

Internal Service Funds. These funds account for the maintenance, operation, and fueling of the City’s automotive 

equipment, replacement of the City’s automotive equipment, replacement of the City’s information technology equipment 

and systems, payment of liability premiums and insurance claims both current and future, and other post-employment 

benefits, all of which are provided to other departments on a cost-reimbursement basis. 

Fiduciary Funds. These funds account for assets held by the City in a purely custodial capacity for other funds, 

governments or individuals. 

4. Basis of accounting 

The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic-resources 

measurement focus and the full accrual basis of accounting, although Agency Funds have no measurement focus. 

Revenues are recorded when earned and expenses are recorded at the same time liabilities are incurred, regardless of 

when the related cash flows take place. 

Governmental funds are reported using the current financial resources measurement focus and the modified accrual 

basis of accounting. Under this method, revenues are recognized when measurable and available. The City considers 

all revenues reported in the governmental funds to be available if the revenues are collected within sixty days after yearend. 

The primary revenue sources susceptible to accrual are taxes and earnings on investments. 

Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general longterm 

debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they 

have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of 

long-term debt and acquisitions under capital leases are reported as other financing sources. The City allocates certain 

indirect expenses incurred by the general government activity to those activities that benefit. 

The City follows Statements and Interpretations of the Financial Accounting Standards Board and its predecessors that 

were issued on or before November 30, 1989, in accounting for its business-type activities, unless they conflict with 

Government Accounting Standards Board pronouncements. 

5. Property taxes 

The County of San Diego (County) bills and collects property taxes on behalf of numerous special districts and 

incorporated cities, including the City. The City’s current year tax collection is received through periodic apportionments 

from the County. 

The County’s tax calendar is from July 1 to June 30. Property taxes attach as a lien on the property on January 1. 

Taxes are levied on July 1 and are payable in two equal installments on November 1 and February 1, and become 

delinquent after December 10 and April 10, respectively. 

E-5





5. Property taxes (continued) 

Since the passage of California’s Proposition 13, beginning with fiscal Year 1978-79 general property taxes are based 

either on a flat 1% rate applied to the 1975-76 full value of the property or on 1% of the sales price of any property sold 

or of the cost of any new construction after the 1975-76 valuations. Taxable values of properties (exclusive of increases 

related to sales and new construction) can rise at a maximum of 2% per year. 

6. Budgetary information 

Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) by the City Council 

annually prior to the beginning of the fiscal year. The budget process includes submittal of each department's budget 

request for the next fiscal year, a detailed review of each department's proposed budget by the City Manager and a final 

recommended budget that is transmitted to the City Council for its review before the required date of adoption. Once 

transmitted to the City Council, the proposed budget is made available for inspection. Prior to adoption, a budget 

workshop meeting is held by the City Council. A public hearing is held to give the public the opportunity to comment 

upon the proposed budget. Notice of such public hearing is given in a newspaper of general circulation. 

The adoption of the budget is accomplished by the approval of a Budget Resolution. The level of budgetary control is at 

the department level. For purposes of this requirement, each fund, other than the General Fund, is considered to be a 

separate department. The City Manager is authorized to transfer appropriations within a departmental budget. Any 

appropriations transfers between departments or funds require City Council approval. Appropriations lapse at year-end 

to the extent that they have not been expended or encumbered. All governmental funds have annual appropriated 

adopted budgets except for all capital projects funds and the following special revenue funds: CDBG, HOME and 

Various Donations. 

7. Encumbrances 

Encumbrance accounting, under which purchase orders, contracts or other commitments for the expenditure of monies 

are recorded in order to reserve that portion of the applicable appropriation, is employed as an extension of formal 

budgetary integration. A listing of significant encumbrances outstanding at year-end is included in Note O – 

Commitments and Contingencies. 

8. Investments 

Investments are reported in the accompanying financial statements at fair value except for certain investment contracts 

that are reported at cost because they are not transferable and they have terms that are not affected by changes in 

market interest rates. In the fund financial statements, changes in fair value that occur during a fiscal year are 

recognized as “Investment earnings” reported for the fiscal year. “Investment earnings” includes interest earnings, 

changes in fair value and any gains or losses realized upon the liquidation or sale of investments. 

9. Interfund transactions and balances 

During the course of operations, numerous transactions occur between individual funds for goods provided or services 

rendered. These receivables and payables are classified as “Due from other funds” or “Due to other funds” on the 

balance sheet of governmental funds. 

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10. Capital assets 

Capital assets, which include land; buildings and improvements; machinery and equipment; interest in Mission Gorge 

Mains and infrastructure assets (i.e., roads, bridges, curbs and gutters, etc.), are reported in the applicable 

governmental or business-type activities columns in the government-wide financial statements. The City defines capital 

assets as those with an initial, individual cost of $10,000 or more and an estimated useful life in excess of two years. 

Such assets are recorded at historical cost or estimated historical cost if actual historical cost is not available. 

Contributed capital assets are valued at their estimated fair market value on the date contributed. 

The estimated useful lives of capital assets using the straight-line method of depreciation are as follows: 

Category Useful Life 

Infrastructure 20 - 60 years 

Buildings and improvements 10 - 50 years 

Machinery and equipment 2 - 20 years 

Interest in Mission Gorge Mains 60 years 

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets 

lives are not capitalized. Improvements are capitalized and depreciated (if applicable) over the remaining useful lives of 

the related capital assets. 

Capital assets and the related obligations acquired under lease/purchase agreements are capitalized and accounted for 

in accordance with the FASB Codification. 

11. Claims and judgments 

The City provides for public liability claims and judgments through its self-insurance fund. The costs of claims and 

judgments are recorded when the liability is incurred and measurable. The City also purchases excess public liability 

insurance above self-insured retention amounts. 

12. Fund balances 

The fund financial statements report fund balances in accordance with GASB Statement 54 as adopted by City Council 

Policy B-12. Committed Fund Balance in the General Fund represents the operating reserve equal to 20% of annual 

expenditures as determined each year in conjunction with the adoption of the annual budget. Assigned Fund Balance in 

the General Fund, if applicable, represents fund balance assignments in the Preliminary and Final Budget for each fiscal 

year. Assigned Fund Balance in the Special Revenue, Capital Projects and Debt Service Funds represent the intent to 

utilize this portion of fund balance for the purpose that these funds were established. Unassigned Fund Balance in the 

General Fund represents the residual fund balance and is a reserve established for purpose of stabilizing delivery of City 

services during periods of operational budget deficits and to mitigate the effects of major economic uncertainties 

resulting from unforeseen changes in revenues and/or expenditures. 

13. Cash and cash equivalents 

City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with 

original maturities of three months or less from the date of acquisition. 

E-7





14. Estimates 

The preparation of financial statements in conformity with GAAP requires management to make estimates and 

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

liabilities at the date of the financial statements and the related reported amounts of revenues and expenses during the 

reporting period. Actual results could differ from estimates. Management believes that the estimates are reasonable. 

15. Prior year data 

The information included in the accompanying government-wide financial statements for the prior year has been 

presented for comparison purposes only and does not represent a complete presentation in accordance with generally 

accepted accounting principles. Certain minor reclassifications of prior year data have been made in order to enhance 

their comparability with current year figures. 

NOTE B: SUCCESSOR AGENCY TRUST FUND FOR ASSETS OF FORMER EL CAJON REDEVELOPMENT 

AGENCY 

On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the 

dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City 

of El Cajon that previously had reported a redevelopment agency within the reporting entity of the City as a blended 

component unit. 

The Bill provides that upon dissolution of a redevelopment agency, either the city or another unit of local government will 

agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local 

government. On January 20, 2012, the City Council elected to become the Successor Agency for the former 

redevelopment agency in accordance with the Bill. 

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot 

enter into new projects, obligations or commitments. Subject to the control of newly established oversight board, 

remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the 

completion of any unfinished projects that were subject to legally enforceable contractual commitments). 

In future fiscal years, successor agencies will only be allocated revenue in the amount that is necessary to pay the 

estimated annual installment payments on enforceable obligations of the former redevelopment agency until all 

enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated. 

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between 

redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received 

such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the 

State Controller is required to order the available assets to be transferred to the public body designated as the 

successor agency by the Bill. 

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NOTE B: SUCCESSOR AGENCY TRUST FUND FOR ASSETS OF FORMER EL CAJON REDEVELOPMENT 

AGENCY (continued) 

Management believes, in consultation with legal counsel, that the obligations of the former redevelopment agency due to 

the City are valid enforceable obligations payable by the successor agency trust under the requirements of the Bill. The 

City’s position on this issue is not a position of settle law and there is considerable legal uncertainty regarding this issue. 

It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial authority that 

would resolve this issue unfavorably to the City. 

In accordance with the timeline set forth in the Bill (as modified by the California Supreme Court on December 29, 2011) 

all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of 

February 1, 2012. 

Prior to that date, the final seven months of the activity of the redevelopment agency continued to be reported in the 

governmental funds of the City (name the funds). After the date of dissolution, as allowed under Section 34176(a) of the 

Bill, the El Cajon Housing Authority elected to retain the housing assets and functions previously performed by the 

former redevelopment agency. The assets and activities for the El Cajon Housing Authority continue to be reported in 

the City’s governmental fund financial statements. The remaining assets, liabilities, and activities of the dissolved 

redevelopment agency, are reported in the Successor Agency fiduciary fund (private-purpose trust fund) in the financial 

statements of the City. 

The transfer of the assets and liabilities of the former redevelopment agency as of February 1, 2012 (effectively the 

same date as January 31, 2012) from governmental funds of the City to fiduciary funds was reported in the 

governmental funds as an extraordinary gain in the governmental fund financial statements. The receipt of these 

assets and liabilities as of January 31, 2012, was reported in the private-purpose trust fund as an extraordinary loss. 

Because of the different measurement focus of the governmental funds (current financial resources measurement focus) 

and the measurement focus of the trust funds (economic resources measurement focus), the extraordinary loss 

recognized in the governmental funds was not the same amount as the extraordinary loss that was recognized in the 

fiduciary fund financial statements. 

The difference between the extraordinary loss recognized in the fund financial statements and the extraordinary loss 

recognized in the fiduciary fund financial statements is reconciled as follows: 

Total extraordinary loss reported in governmental funds – increase to 

net assets of the Successor Agency Trust Fund 

Capital assets recorded in the government-wide financial statements – 

increase to net assets of the Successor Agency Trust Fund 

Unamortized bond issuance costs– increase to net assets of the 

Successor Agency Trust Fund 

Long-term debt reported in the government-wide financial statements – 

decrease to net assets of the Successor Agency Trust Fund: 

Tax allocation bonds, net of unamortized bond discount 

Compensated absences 

Interest payable 

Net decrease to the net assets of the Successor Agency Trust Fund as a 

result of initial transfers (equal to amount of extraordinary gain 

reported in the government-wide financial statements of the City) 

E-9 

$ 36,972,442 

7,594,378 

363,290 

(63,927,812) 

(92,869) 

(1,136,834) 

$(20,227,405)

NOTE C: CASH AND INVESTMENTS 




Cash and investments as of June 30, 2012, are classified in the accompanying financial statements as follows: 

Statement of net assets: 

Cash and investments $ 81,863,268 

Cash and investments with fiscal agent 2,639,328 

Fiduciary funds: 

Cash and investments 20,243,687 

Total cash and investments $ 104,746,283 

Cash and investments as of June 30, 2012 consist of the following: 

Cash on hand $ 4,910 

Deposits with financial institutions 1,672,861 

Investments 103,068,512 

Total cash and investments $ 104,746,283 

Investments Authorized by the California Government Code and City’s Investment Policy 

The table below lists some of the investment types authorized for the City by the California Government Code Section 

53601 and the City’s investment policy. The table also identifies certain provisions of the California Government Code 

or the City’s investment policy, if more restrictive, that address interest rate risk and concentration of credit risk. This 

table does not address investments of debt proceeds held by the bond trustee that are governed by the provisions of 

debt agreements of the City, rather than the general provisions of the California Government Code or the City’s 

investment policy. 

Investment Types Authorized by State Law 

and the City’s Investment Policy 

E-10 

Maximum 

Maturity 

Maximum 

Percentage 

of Portfolio 

Maximum 

Investment 

in One Issuer 

Local Agency Bonds 5 years None None 

US Treasury Obligations 5 years None None 

US Agency Securities 5 years None None 

Commercial Paper 270 days 25% 10% 

Repurchase Agreements 30 days 30% None 

Medium-Term Notes 5 years 30% None 

Money Market Mutual Funds N/A 15% 10% 

Mortgage Pass-Through Securities 5 years 20% None 

Certificates of Deposit 1 year 20% None 

JPA Pools (other investment pools)/CAMP 5 years 30% None 

Local Agency Investment Fund (LAIF) N/A None $ 50,000,000 

per LAIF account 

Investments Authorized by Debt Agreements 

The debt agreements govern the investment of debt proceeds held by bond trustee rather than the general provisions of 

the California Government Code or the City’s investment policy. The table below identifies the investment types that are 

generally authorized for investments with fiscal agent. The table also identifies certain provisions of these debt 

agreements that address interest rate risk and concentration of credit risk.

NOTE C: CASH AND INVESTMENTS (continued) 

Authorized Investment Type 




Maximum 

Maturity 

E-11 

Maximum 

Percentage 

Allowed 

Maximum 

Investment 

in One Issuer 

General Obligations of States None None None 

US Treasury Obligations None None None 

US Agency Securities None None None 

Banker’s Acceptances 360 days None None 

Commercial Paper 270 days None None 

Money Market Mutual Funds N/A None None 

Investment Contracts 30 years None None 

Pre-Refunded Municipal Obligations None None None 

Local Agency Investment Fund (LAIF) N/A None $ 50,000,000 

per LAIF account 

Disclosures Relating to Interest Rate Risk 

Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. 

Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market 

interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of 

shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is 

maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for 

operations. 

Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustee) 

to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investment 

by maturity: 

Remaining Maturity (in months) 

12 or less 13 to 24 25 to 60 > 60 

Investment Type Total 

US Agency securities $ 34,807,251 $15,605,545 $ 5,585,464 $13,616,242 $ - 

US Treasuries 3,025,605 1,501,992 1,523,613 - - 

CAMP money market 543,309 543,309 - - - 

LAIF (3 separate accounts) 

Held by fiscal agent: 

55,586,635 55,586,635 - - - 

US Agency securities 2,558,827 2,558,827 - - - 

AIM short-term 1,436,426 1,436,426 - - - 

LAIF 5,029,958 5,029,958 - - - 

CAMP money market 80,501 80,501 - - - 

Total $103,068,512 $82,343,193 $7,109,077 $13,616,242 $ - 

Investments with Fair Value Highly Sensitive to Interest Rate Fluctuations 

As of June 30, 2012, the City’s investments (including investments held by bond trustees) did not include investments 

that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information 

provided above).





Disclosures Relating to Credit Risk 

Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. 

This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented 

below is the minimum rating required by (where applicable) the California Government Code, the City’s investment 

policy, or debt agreements, and the actual rating as of year end for each investment type. 

Investment Type 

Total 

Minimum 

Legal Rating AAA 

Not Rated 

US Agency securities $ 34,807,251 N/A $ 34,807,251 $ - 

US Treasuries 3,025,605 N/A - 3,025,605 

CAMP money market 543,309 N/A - 543,309 

LAIF 

Held by fiscal agent: 

55,586,635 N/A - 55,586,635 

US Agency securities 2,558,827 AAA 2,558,827 - 

AIM short term investment 1,436,426 AAA 1,436,426 - 

LAIF 5,029,958 N/A - 5,029,958 

CAMP money market 80,501 N/A - 80,501 

Total $ 103,068,512 $ 38,802,504 $ 64,266,008 

Concentration of Credit Risk 

The investment policy of the City contains no limitations on the amount that can be invested in any one issuer beyond 

that stipulated by the California Government Code. Investments in any one issuer (other than U.S. Treasury securities, 

mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows: 

Issuer Type Amount 

Federal Home Loan Mortgage Corp. Federal Agency Securities $13,063,226 

Federal Home Loan Bank Federal Agency Securities 3,037,020 

Federal National Mortgage Association Federal Agency Securities 18,707,005 

Custodial Credit Risk 

Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a 

government will not be able to recover its deposits or will not be able to recover collateral securities that are in the 

possession of an outside party. The custodial credit risk for investments is the risk that, in the event of a failure of the 

counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or 

collateral securities that are in the possession of another party. The California Government Code and the Entity’s 

investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk 

for deposits or investments, other than the following provision for deposits: The California Government Code requires 

that a financial institution secure deposits made by state or local governmental units by pledging securities in an 

undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). 

The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited 

by the public agencies. California law also allows financial institutions to secure Agency deposits by pledging first trust 

deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2012, $0 of the City’s 

deposits with financial institutions in excess of federal depository insurance limits was held in uncollateralized accounts. 

For the investments with fiscal agent, the fiscal agent selects the investment under the terms of the applicable trust 

agreement, acquires the investment, and holds the investment on behalf of the reporting government. 

E-12





Investment in State Investment Pool 

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California 

Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment 

in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the 

fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance 

available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized 

cost basis. 

LAIF is a governmental investment pool managed and directed by the California State Treasurer and is not registered 

with the Securities and Exchange Commission. An oversight committee comprised of California State officials and 

various participants provide oversight to the management of the fund. The daily operations and responsibilities of LAIF 

fall under the auspices of the State Treasurer’s office. The maximum investment in LAIF is $50,000,000 per account. 

Investment in JPA Pool/CAMP 

The City is a voluntary participant in the CAMP Trust (Trust), which was established as a nontaxable investment portfolio 

under provisions of the California Joint Exercise of Powers Act to provide California Public Agencies with comprehensive 

investment management services. There are no minimum deposit requirements or limits on deposits and withdrawals. 

Dividends from net investment income are declared on a daily basis and paid on the last day of the month. Dividends 

paid are automatically reinvested in each account by the purchase of additional shares. The contract creating the Trust 

specifies the types of investments that can be made by the investment portfolio with available cash: U.S. Government 

securities, securities of federally sponsored agencies, repurchase agreements, banker’s acceptances, negotiable 

certificates of deposit and commercial paper. The fair value of the City’s investment in this pool is reported in the 

accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by CAMP. 

NOTE D: ACCOUNTS RECEIVABLE AND ALLOWANCE FOR BAD DEBT 

Accounts receivable and related allowance for bad debt are as follows: 

Governmental Activities: Business-type Activities: 

General Fund $ 348,299 

E-13 

Wastewater $2,468,991 

Public Safety Facility 

capital projects fund 

5,542 Less allowance for bad debt (200,000) 

Non-major 

special revenue fund 

474,400 

Total Governmental Activities $ 828,241 Total Business-type Activities $2,268,991 

Allowance for bad debt is recognized to ensure that receivables are not overstated due to uncollectible accounts. Bad 

debt reserve is maintained for accounts receivable based on a variety of factors, including the length of time receivables 

are past due, economic conditions, significant one-time events and historical experience.

NOTE E: LOANS RECEIVABLE 




Lexington Avenue Senior Apartments $ 302,500 

In fiscal year 1994, the City and the former Redevelopment Agency entered into a Disposition and Development 

Agreement with a Lexington Avenue Senior Apartments to provide for the development of affordable housing on certain 

property situated within the Project Area. The former Redevelopment Agency loaned $550,000, which is to be repaid in 

forty equal annual installments of $13,750 each, with no interest. If the apartments remain in compliance with the 

provisions of the agreement during the one-year period preceding the due date of the note installment, the installment is 

forgiven and the principal balance of the note is reduced by the amount forgiven. At the end of the agreement, fiscal 

year 2034, the property will revert to the El Cajon Housing Authority, as the successor housing entity. 

Weiland Development Company $ 748,834 

In fiscal year 2009, the former Redevelopment Agency entered into an Affordable Housing Agreement with Weiland 

Development Company to acquire real property for construction of twenty-six single-family homes and for down payment 

assistance for qualified first time homebuyers in the aggregate amount not to exceed $2,950,000. The loan is being 

repaid in up to the twenty-six payments in amounts not to exceed $113,450 per unit sold. Interest accrues at the annual 

rate of 3.25%. As of June 30, 2012, nineteen units had been sold, and total principal and interest payments of 

$1,703,129 have been received. The balance outstanding includes principal and accrued interest of $743,209 and 

$5,625, respectively as of June 30, 2012. This loan is now an asset of the El Cajon Housing Authority as the successor 

housing entity. 

El Cajon Gardens, L.P. (Laurel Village Project), Loan #1 $ 893,272 

In fiscal year 1998, the City loaned $832,000 of HOME Program funds to the El Cajon Gardens, L.P. for the purpose of 

acquiring and rehabilitating forty-two apartment properties on Leslie Road. The note is due on or about September 11, 

2012, unless certain other conditions as outlined in the loan agreement cause the repayment to be sooner. The loan is 

secured by a Deed of Trust and bears interest at 0.5% per annum. The balance outstanding includes principal and 

accrued interest of $832,000 and $61,272, respectively, as of June 30, 2012. 

El Cajon Gardens, L.P. (Laurel Village Project), Loan #2 $ 1,270,621 

Additionally, in fiscal year 1998, the former Redevelopment Agency entered into an Affordable Housing Agreement with 

El Cajon Gardens, L.P. for the same project. Under the agreement, which was subsequently amended on June 1, 1999, 

the Agency agreed to loan up to $690,000, at an interest rate of 6%. The loan is secured by a Deed of Trust. The loan 

is to be repaid on or about May 31, 2014, unless certain other conditions as outlined in the amendment allow the 

repayment date to be later. The balance outstanding includes principal and accrued interest of $690,000 and $580,621, 

respectively, as of June 30, 2012. This loan is now an asset of the El Cajon Housing Authority as the successor 

housing entity. 

E-14

NOTE E: LOANS RECEIVABLE (continued) 




Chambers Senior Residences, L.P. $ 1,897,956 

In fiscal year 2010, the former Redevelopment Agency entered into a Disposition Development Agreement with 

Chambers Senior Residences, L.P. for the development and construction of affordable housing units for forty-eight 

senior households with very low income and family households with moderate income. The former Redevelopment 

Agency agreed to provide a loan up to $4,500,000, secured by a Deed of Trust. The loan bears interest at the rate of 

3%. Loan repayments will be based on residual receipts from the monies earned on the property once it is built. As of 

June 30, 2012, the Housing Authority, as the successor for housing assets and obligations, had disbursed $1,885,134 to 

the developer for development and construction costs. The balance outstanding includes principal and accrued interest 

of $1,885,134 and $12,822, respectively, at June 30, 2012. This loan is now an asset of the El Cajon Housing Authority 

as the successor housing entity. 

Successor Agency to the Former El Cajon Redevelopment Agency $ 3,115,860 

The City entered into an agreement with the former Redevelopment Agency to sell the property at 100 Fletcher Parkway 

on June 15, 2011. The property was the site of the former police facility. The appraisal was for $4,850,000, which was 

the purchase price of the property. The former Redevelopment Agency made a $1,000,000 down payment and executed 

a Promissory Note secured by a Deed of Trust for $3,850,000. The note bears an interest rate of 3% and requires 

annual payments of $840,665 for five years with the first payment paid on December 1, 2011. The balance outstanding 

includes principal and accrued interest of $3,062,497 and $53,363, respectively. This loan is now an asset of the 

Successor Agency to the Former El Cajon Redevelopment Agency. 

Other Various Rehabilitation Loans $ 15,306,004 

The City and former Redevelopment Agency have made various rehabilitation loans to low income households during 

the past few years. Provided that the Borrower continues to occupy the property as their primary residence, the principal 

sum is to be repaid upon the sale, transfer or change in title to the property. A few of the loans are forgivable if the 

Borrower meets certain criteria. The loans are secured by a Deed of Trust and bear no interest. The outstanding 

balances on these loans are as follows: CDBG $332,976; HOME program $8,596,466; CAL HOME $474,174; and 

Housing Authority (Low/Moderate Income Housing Assets) $5,902,388. 

__________ 

TOTAL LOANS RECEIVABLE $ 23,535,047 

E-15

NOTE F: CAPITAL ASSETS 




Capital asset activity for the fiscal year ended June 30, 2012 is as follows: 

Beginning 

Balance 

E-16 

Additions 

Deletions 

Ending 

Balance 

Governmental activities 

Capital assets, not being depreciated: 

Land $ 14,009,227 $ 150,403 $ (1,753,823) $ 12,405,807 

Rights of way 31,190,652 - - 31,190,652 

Construction in progress 61,595,250 2,912,745 (63,887,478) 620,517 

Total assets, not being depreciated 106,795,129 3,063,148 (65,641,301) 44,216,976 

Capital assets being depreciated: 

Land improvements 3,178,532 - (1,233,239) 1,945,293 

Buildings and improvements 24,474,078 57,689,251 (27,496) 82,135,833 

Machinery and equipment 15,198,871 4,512,794 (850,666) 18,860,999 

Infrastructure 172,828,552 4,347,164 (167,639) 177,008,077 

Total assets being depreciated 215,680,033 66,549,209 (2,279,040) 279,950,202 

Less accumulated depreciation for: 

Land improvements (485,014) (276,575) 152,177 (609,412) 

Buildings and improvements (10,734,142) (669,515) 27,496 (11,376,161) 

Machinery and equipment (11,602,754) (1,027,614) 717,947 (11,912,421) 

Infrastructure (82,054,424) (4,780,303) 156,583 (86,678,144) 

Total accumulated depreciation (104,876,334) (6,754,007) 1,054,203 (110,576,138) 

Total capital assets being depreciated, net 110,803,699 59,795,202 (1,224,837) 169,374,064 

Governmental activity capital assets, net $217,598,828 $62,858,350 $(66,866,138) $ 213,591,040 

Beginning 

Balance 

Additions 

Deletions 

Ending 

Balance 

Business-type activities 

Land $ 82,300 $ - $ - $ 82,300 

Construction in progress 558,844 1,283,820 (1,343,808) 498,856 

Total assets, not being depreciated 641,144 1,283,820 (1,343,808) 581,156 

Capital assets being depreciated: 

Buildings and improvements 427,527 - - 427,527 

Machinery and equipment 2,263,433 56,298 (56,950) 2,262,781 

Interest in Mission Gorge Mains 11,038,654 - - 11,038,654 

Infrastructure 75,396,139 1,190,700 (118,913) 76,467,926 

Total assets being depreciated 89,125,753 1,246,998 (175,863) 90,196,888 

Less accumulated depreciation for: 

Buildings and improvements (218,053) (7,224) - (225,277) 

Machinery and equipment (1,040,553) (208,096) 52,501 (1,196,148) 

Interest in Mission Gorge Mains (2,207,733) (183,978) - (2,391,711) 

Infrastructure (37,889,846) (1,299,491) 37,253 (39,152,084) 

Total accumulated depreciation (41,356,185) (1,698,789) 89,754 (42,965,220) 

Total capital assets being depreciated, net 47,769,568 (451,791) (86,109) 47,231,668 

Business-type activity capital assets, net $ 48,410,712 $ 832,029 $ (1,429,917) $ 47,812,824

NOTE F: CAPITAL ASSETS (continued) 




Depreciation expense is charged to functions based on their usage of the related assets. The amounts allocated to 

each function are as follows: 

Governmental Activities: Business Type Activities: 

General government $ 485,575 Wastewater $ 1,698,789 



Parks and recreation 288,283 

Total depreciation expense $ 6,754,007 Total depreciation expense $ 1,698,789 

NOTE G: DEFERRED REVENUE 

Deferred revenue consisted of the following at June 30, 2012: 

Major Governmental Funds: 

General Fund 

Recreation Facility Use Fees $ 1,057 

Loans receivable (principal) – Successor Agency 3,062,497 

HOME Special Revenue Fund 

Loans receivable (accrued interest) – El Cajon Gardens 61,272 

Housing Authority Special Revenue Fund 

Loans receivable (accrued interest) – El Cajon Gardens 580,621 

Loans receivable (accrued interest) – Chambers Senior Residence LP 12,822 

Loans receivable (accrued interest) – Weiland Development Company 5,625 

Non-major governmental funds: 

Special Revenue Funds 

Recreation Special Programs 113,506 

Total 

NOTE H: INTERFUND TRANSACTIONS AND BALANCES 

Due to/from other funds: 

Amounts due to and from funds for the year ended June 30, 2012, were as follows: 

Due to General Fund from: 

HOME Special Revenue Fund $ 11,190 

Non-major Governmental Funds 132,787 

E-17 

$ 3,837,400 

All current interfund receivables and payables represent short-term borrowings to manage cash flows and are expected 

to be repaid within one year. These balances resulted from interfund borrowings to eliminate negative cash.




NOTE H: INTERFUND TRANSACTIONS AND BALANCES (continued) 

Transfers to and from funds for the year ended June 30, 2012, were as follows: 

Transfers to General Fund from: 

Non-major Governmental Funds $ 218,206 (a) 

Transfers to Housing Authority Special Revenue Fund from: 

Redevelopment Agency Special Revenue Fund 19,337,863 (c) 

Transfers to Emergency Medical Service Special Revenue Fund from: 

General Fund 1,266,348 (a) 

Transfers to Redevelopment Agency Debt Service Fund from: 

Redevelopment Agency Special Revenue Fund 396,203 (b) 

Transfers to City Capital Improvement Capital Project Fund from: 

Wastewater Enterprise Fund 5,682 (a) 


Non-major Governmental Funds 998,489 (a) 

Transfer to Redevelopment Agency Capital Projects Fund from: 

Redevelopment Agency Debt Service Fund 1,209,248 (a) 

Transfers to Non-Major Governmental Funds from: 

General Fund 100,000 (a) 

Redevelopment Agency Special Revenue Fund 14,716 (a) 

City Capital Improvement Capital Project Fund 19,543 (a) 

Public Safety Facility Project Capital Project Fund 1,008,400 (b) 

Redevelopment Agency Capital Project Fund 93,528 (a) 

Non-major Governmental Fund 1,427,643 (a) 

Transfers to Internal Service Funds from: 


Non-major Governmental Funds 3,153 (a) 

E-18 

$ 32,547,887 

Transfers are used to: (a) subsidize various programs and capital projects; (b) for debt service payment; (c) transfer of 

net assets of former Redevelopment Agency.

NOTE I: LONG-TERM LIABILITIES 




Summary of the changes in long-term liabilities for the fiscal year ended June 30, 2012, is as follows: 

Beginning 

Balance 

Additions 

E-19 

Deletions 

Ending 

Balance 

Due Within 

One Year 

GOVERNMENTAL ACTIVITIES 

Compensated 

absences 

Claims payable 

$ 7,612,555 $3,188,873 $ (3,686,709) $ 7,114,719 $ 1,778,680 

(note M) 

Tax allocation refunding bonds: 

1,586,000 126,337 - 1,712,337 428,084 

2000 bond issue 15,940,000 - (15,940,000) - - 

2005 bond issue 35,745,000 - (35,745,000) - - 

Tax allocation bond 14,635,000 - (14,635,000) - - 

Revenue bond 25,195,000 - - 25,195,000 2,940,000 

Notes payable 508,000 - (57,000) 451,000 57,000 

Subtotal long-term liabilities 101,221,555 3,315,210 (70,063,709) 34,473,056 5,203,764 

Less deferred amounts for: 

Issuance discount (1,113,161) - 1,113,161 - - 

Issuance premium 577,488 - (128,330) 449,158 128,330 

Total governmental activities $ 100,685,882 $ 3,315,210 $ (69,078,878) $ 34,922,214 $ 5,332,094 

BUSINESS-TYPE ACTIVITIES 

Compensated absences $ 314,987 $ 322,289 $ (314,987) $ 322,289 $ 80,572 

SD Metro Wastewater 11,038,654 - (1,179,837) 9,858,817 - 

Total business-type activities $ 11,353,641 $ 322,289 $ (1,494,824) $ 10,181,106 $ 80,572 

Compensated absences: 

Compensated absences balances for the fiscal year ended June 30, 2012 are as follows: 

Governmental Activities: Business Type Activities: 

MAJOR GOVERNMENTAL FUNDS - Wastewater enterprise $ 322,289 

General fund $ 6,617,911 

HOME special revenue fund 3,511 

Housing Authority special revenue 12,025 

Internal service funds 143,353 

NON-MAJOR GOVERNMENTAL FUNDS - 

Special revenue funds 337,919 

Total compensated absences $ 7,114,719 Total compensated absences $ 322,289

NOTE I: LONG-TERM LIABILITIES (continued) 

Revenue bond: 




El Cajon Public Financing Authority, 2009 Series A $ 25,195,000 

In June 2009, the El Cajon Public Financing Authority (ECPFA) issued $25,195,000 of Revenue Bonds. The Bonds are 

special obligations of ECPFA payable from revenue consisting primarily of lease payments payable by the City under a 

lease agreement dated as of June 1, 2009, between the ECPFA, as lessor, and the City as lessee. The City pledges 

and will pay the lease payments from sales tax revenues received by the City pursuant to Proposition O, a ballot 

measure approved by 68.92% of the voters of the City voting on the matter on November 2, 2004, which imposes a ½% 

sales tax in the City, which will expire on March 31, 2015. The Bonds were issued to finance a portion of the costs of 

the public safety facility. The Bonds are term bonds maturing on August 1, 2015, and are subject to mandatory 

redemption from minimum sinking account payments. Interest is payable semi-annually on February 1 and August 1 at 

interest rates ranging from 3.00% to 5.00%. 

Pledged revenues: The City has pledged future sales tax revenues received by the City pursuant to Proposition O 

(estimated at $45,082,650 at date of issuance) as security for the bonds equivalent to the total principal and 

interest of the bonds at issuance. The pledge is considered outstanding for the duration of the debt service 

requirements (6 years). Pledged sales tax revenues and required debt service for the fiscal year ended June 30, 

2012, are $7,674,879 and $1,008,400, respectively. 

The revenue bonds reserve fund is to be held on deposit with a fiscal agent (trustee) in an amount equal to the least of 

(i) maximum annual debt service, (ii) 125% of average annual debt service, or (iii) 10% of the principal amount on the 

Bonds. The amount of restricted cash and investments held with fiscal agent at June 30, 2012, was $2,639,328. 

Debt service requirements to maturity of the revenue bond are as follows: 

Note payable: 

Year ending June 30 Principal Interest Total 

2013 $ 2,940,000 $ 964,300 $ 3,904,300 

2014 7,130,000 772,600 7,902,600 

2015 15,125,000 620,900 15,745,900 

Totals $ 25,195,000 $ 2,357,800 $ 27,552,800 

HUD Section 108 Series 2004-A $ 451,000 

In June 2004, the City entered into a note payable for $850,000 with HUD under Section 108 for the acquisition of a fire 

engine ladder truck that serves the entire City. This note payable is an advance of future CDBG grants. Interest is 

payable semi-annually in February and August. This note is secured by a deed of trust and matures in August 2019. 

E-20

NOTE I: LONG-TERM LIABILITIES (continued) 

Note payable (continued): 




Debt service requirements to maturity of the notes payable are as follows: 

Year ending June 30 Principal Interest Total 

2013 $ 57,000 $ 22,865 $ 79,865 

2014 57,000 20,004 77,004 

2015 57,000 17,077 74,077 

2016 57,000 14,070 71,070 

2017 57,000 10,981 67,981 

2018-2020 166,000 13,938 179,938 

Totals $ 451,000 $ 98,935 $ 549,935 

Obligation due to SD Metro Wastewater $ 9,858,817 

In prior years, the City entered into an agreement to reimburse the Metropolitan Wastewater Department of the City of 

San Diego (“SDMWD”) for costs incurred by SDMWD on behalf of the Wastewater Fund (an Enterprise Fund) of the City 

of El Cajon. The parties are in agreement as to the obligation; however, both the total dollar amount to be remitted and 

the amounts of the annual installments are still being negotiated by the two parties. No agreement has been made with 

respect to whether or not interest will be applied to the obligation. 

NOTE J: PUBLIC EMPLOYEES' RETIREMENT SYSTEM 

Plan Description: California Public Employees’ Retirement System (CalPERS) Defined Benefit Pension Plan. The City 

contributes to CalPERS, an agent multiple-employer defined benefit pension plan that acts as a common investment and 

administrative agent for participating public entities within the State of California. The City’s covered payroll for 

employees enrolled in CalPERS for the year ended June 30, 2012, was $30,180,902 out of a total reportable payroll of 

$36,843,294. The employer’s contribution rates for miscellaneous and safety plan employees were 25.325% and 

35.597%, respectively. 

All City employees who work at least 1,000 hours per fiscal year are eligible to participate in CalPERS. Participants in 

the plan vest after five years of employment. Employees in the plan who retire at or after age 50, receive annual 

retirement benefits calculated on a sliding scale based on age, years of service, and final compensation based on one 

year highest compensation or three years career average, depending on membership class and hire date. 

CalPERS also provides death and disability benefits. These benefit provisions and all other requirements are 

established by State Statute and City ordinance. Copies of CalPERS’ annual report may be obtained from their 

executive office located at 400 P Street, Sacramento, CA 95814. 

Funding Policy: 

The member rates as a percentage of wages for the year ended June 30, 2012, were as detailed below. During the 

fiscal year, in accordance with contracts, the City reduced the Employer Paid Member Contribution (EPMC) rates from 

4% and 4%, respectively, to 2% and 2%, respectively. 

E-21




NOTE J: PUBLIC EMPLOYEES' RETIREMENT SYSTEM (continued) 

Member Rate as a Percentage of Wages as of January 7, 2012 

Employer Paid Member 

Member Type 

Contribution 

Paid by Employee Total Member Rate 

Local miscellaneous 2% 6% 8% 

Local safety 2% 7% 9% 

Actuarially-Determined Contributions Requirements and Contribution Made: 

PERS uses the Entry Age Normal Actuarial Cost Method, which is a projected benefit cost method. That is, it takes into 

account those benefits that are expected to be earned in the future as well as those already accrued. According to this 

cost method, the normal cost for an employee is the level amount, which would fund the projected benefit if it were paid 

annually from date of employment until retirement. 

PERS uses a modification of the Entry Age Cost Method in which the employer’s total normal cost is expressed as a 

level percentage of payroll. PERS also uses the level percentage of payroll method on a closed basis to amortize any 

unfunded actuarial liabilities. 

The required contribution was determined as part of the June 30, 2010, actuarial valuation using the entry age normal 

actuarial cost method. The significant actuarial assumptions included (a) investment return of 7.75% compounded 

annually (net of expenses), (b) overall payroll growth of 3.25% compounded annually, and (c) inflation of 3% 

compounded annually. The actuarial value of PERS assets was determined using techniques that smooth the effects of 

short-term volatility in the market value of investments over a three-year period (smoothed market value). 

Readers of this document are advised to refer directly to the full disclosure of actuarial and funding practices of the 

multi-employer PERS system, which this agency does not control. PERS may employ actuarial techniques such as 

extended smoothing and amortization periods that would result in future increases in required employer contributions 

which are not reflected in these financial statements, particularly in the event of any future changes in governmental 

financial reporting standards and system-wide funding practices. Further information on its financial practices should be 

requested from PERS. 

Funded Status and Funding Progress: 

The funded status and funding progress below presents multi-year trend information about whether the actuarial value of 

the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Multiyear 

trend information regarding the funding progress is required supplemental information and is presented here for the 

convenience of the reader. 

The funded status of the Miscellaneous and Safety Plans were 78.5% and 76.5%, respectively, as of the most recent 

actuarial valuation date of June 30, 2011. 

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the 

probability of occurrence of events far into the future. Examples include assumptions about future employment, 

mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual 

required contributions of the employer are subject to continual revision as actual results are compared with past 

expectations and new estimates are made about the future. 

E-22




NOTE J: PUBLIC EMPLOYEES' RETIREMENT SYSTEM (continued) 

Entry Age 

Normal 

Accrued Liability 

MISCELLANEOUS PLAN 

E-23 

Annual 

Covered 

Payroll 

UAAL as 

a % of 

Payroll 

Valuation 

Actuarial Value Unfunded Funded 

Date 

of Assets Liability Status 

06/30/2009 $ 152,924,295 $ 118,676,430 $ 34,247,865 77.6% $16,302,182 210.1% 

06/30/2010 159,651,502 124,499,566 35,151,936 78.0% 16,170,728 217.4% 

06/30/2011 166,665,778 130,784,030 35,881,748 78.5% 15,696,037 228.6% 

Entry Age 

Normal 

Accrued Liability 

SAFETY PLAN 

Annual 

Covered 

Payroll 

UAAL as 

a % of 

Payroll 

Valuation 

Actuarial Value Unfunded Funded 

Date 

of Assets Liability Status 

06/30/2009 $ 214,630,760 $ 166,927,505 $ 47,703,255 77.8% $15,544,152 306.9% 

06/30/2010 223,289,069 172,692,315 50,596,754 77.3% 15,098,489 335.1% 

06/30/2011 234,599,761 179,562,619 55,037,142 76.5% 15,548,494 354.0% 

Annual Pension Cost: 

For fiscal year 2011-12, the City’s annual pension cost of $10,840,966 for CalPERS was equal to the City’s required and 

actual contributions. This amount includes both the required employer contribution and the employee contribution made 

by the City. The three-year trend is presented below. 

Fiscal Year 

Miscellaneous Plan 

Annual Pension 

Cost (APC) 

Safety Plan 


Cost (APC) 

Total 


Cost (APC) 

Percentage of 

APC Contributed 

Net Pension 

Obligation 

06/30/2010 $ 4,756,825 $ 5,909,755 $ 10,666,580 100% - 

06/30/2011 4,266,516 5,821,110 10,087,626 100% - 

06/30/2012 4,669,093 6,171,873 10,840,966 100% - 

NOTE K: DEFINED CONTRIBUTION PLAN 

City provides a defined contribution retirement plan (the "Plan") for commissioners and specified part-time, temporary 

and seasonal employees who work less than 1,000 hours per fiscal year in lieu of Social Security coverage. In a defined 

contribution plan, benefits depend solely on amount contributed to the plan plus investment earnings. The plan is 

administered as part of the City’s 457 Plan. 

Eligible employees are fully vested effective their dates of hire. If participating employees become eligible for 

participation in PERS, by virtue of working more than 1,000 hours per fiscal year or otherwise, contributions to the Plan 

shall cease once the employee is enrolled in PERS. If a participating employee is hired into a regular full-time position, 

all contributions and earnings in the plan are transferred to the Deferred Compensation Plan. 

Contributions are equal to 7.5% of each participating employee's compensation and are made by the City. Contributions 

are invested with a third party administrator in a liquid savings account. Earnings are at a variable rate and accrue daily 

commencing on the date the funds are posted. For the year ended June 30, 2012, the City’s total payroll and covered 

payroll was $371,883. The City made employer contributions of $27,891. The assets held in trust by the plan 

administrator had a fair value of $342,780 at June 30, 2012.




NOTE K: DEFINED CONTRIBUTION PLAN (continued) 

Distribution shall be by lump sum only, twelve months after termination of employment. Such distribution shall include 

investment earnings accrued to date of fund withdrawal. In the event of a participating employee’s death, the waiting 

period will be waived. 

NOTE L: OTHER POST EMPLOYMENT BENEFITS 

Plan Description 

The City provides health benefits for retired miscellaneous and safety members of PERS who retired on or after July 14, 

1988. The monthly contribution was $108 and $112 during calendar years 2011 and 2012, respectively. The healthcare 

benefit meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement 45. 

Funding Policy 

The contribution requirements of plan members and the City are established and may be amended by the City Council. 

The required contribution is based on projected pay-as-you-go financing requirements, with an additional amount to 

prefund benefits as determined annually by the City Council. For the fiscal year 2011-12, the City contributed $485,660 

to the plan: $236,660 pay-as-you-go (100% of current premiums) and $249,000 towards prefunding. 

Annual OPEB Cost and Net OPEB Asset 

The City’s annual other post employment benefit (OPEB) cost (expense) is calculated based on the annual required 

contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB 

Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal 

cost each year and amortize any unfunded actuarial liabilities (or funding excess) not to exceed thirty years. Beginning 

with fiscal year 2011-12, the City elected to reduce the amortization period to fifteen years. The following table shows 

the components of the City’s annual OPEB cost for the year, the amount contributed to the plan, and changes in the 

City’s net OPEB asset. 

June 30, 2012 

Annual required contribution $ 249,000 

Interest on net OPEB obligation (37,637) 

Adjustment to annual required contribution 33,622 

Annual OPEB cost (expense) 244,985 

Contributions made (485,660) 

Decrease in net OPEB obligation (asset) (240,675) 

Net OPEB obligation (asset) – beginning of year (499,319) 

Net OPEB obligation (asset) – end of year $ (739,994) 

The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation 

(asset) for 2012 and the two preceding years were as follows: 

Fiscal Year Annual OPEB Cost 

Percentage of Annual 

OPEB Cost Contributed 

E-24 

Net OPEB 

Obligation (Asset) 

6/30/2010 $ 147,725 210.5% ($302,720) 

6/30/2011 145,998 216.8% ( 499,319) 

6/30/2012 244,985 192.5% ( 739,994)




NOTE L: OTHER POST EMPLOYMENT BENEFITS (continued) 

Funded Status and Progress 

The funded status and funding progress below presents multi-year trend information about whether the actuarial value of 

the plan assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits. Multi-year 

trend information regarding the funding progress is required supplemental information and is presented here for the 

convenience of the reader. 

The funded status was 16.2% as of the most recent actuarial valuation date of June 30, 2011. 

Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the 

probability of occurrence of events far into the future. Examples include assumptions about future employment, 

mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual 

required contributions of the employer are subject to continual revision as actual results are compared with past 

expectations and new estimates are made about the future. 

E-25 

Annual 

Covered 

Valuation 

Actuarial Value 

Date Accrued Liability of Assets Unfunded Liability Funded Status Payroll 

7/01/2007 $ 3,510,000 $ 0 $ 3,510,000 0.0% $ 33,359,283 10.5% 

7/01/2009 3,031,000 81,000 2,950,000 2.7% 31,846,334 9.3% 

6/30/2011 3,441,000 559,000 2,882,000 16.2% 30,806,019 9.4% 

UAAL as a % 

of Payroll 

Actuarial Methods and Assumptions 

Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the 

employer and the plan members) and include the types of benefits provided at the time of each valuation and the 

historical pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods 

and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial 

accrued liabilities and the actuarial assets, consistent with the long-term perspective of the calculations. 

For the most recent valuation, the actuarial cost method used for determining the benefit obligations is the Entry Age 

Normal Cost Method. The actuarial assumptions included a 7.61% investment rate of return, which is the assumed rate 

of expected long-term investment returns on plan assets calculated based on the funded level of the plan at the 

valuation date, and an annual healthcare cost trend rate of 0%. The UAAL is being amortized as a level percentage of 

projected payroll over 15 years. It is assumed the City’s payroll will have no increases in future years. 

NOTE M: RISK MANAGEMENT 

Worker’s Compensation Insurance 

The City participates in CSAC Excess Insurance Authority’s (CSAC EIA) programs for both primary and excess 

coverage. The primary coverage covers the first dollar to $125,000; the excess layer covers losses up to the statutory 

limit. York Risk Management is the City’s third party administrator. Alliant Insurance Services provides brokerage 

services. Loss control services are obtained on an as needed basis. 

Liability Insurance 

The City is self-insured for liability insurance through CSAC EIA with a self-insured retention (SIR) of $250,000. The 

employment practices liability SIR is $500,000. The excess liability policy limit is $15,000,000. The Director of Human 

Resources/Risk Manager administers claims against the City. The estimated liability for pending and incurred but not 

reported (IBNR) claims at June 30, 2012, has been incorporated in the financial statements as claims payable in the Self 

Insurance Internal Service Fund and is based on history and actuarial studies.

NOTE M: RISK MANAGEMENT (continued) 




The aggregate change in the balance of liability is as follows: 

2012 2011 2010 

Claims payable, beginning of year $ 1,586,000 $ 1,413,000 $ 1,413,000 

Current year claims & changes in estimates 542,000 538,027 410,095 

Claim payments (415,663) (365,027) (410,095) 

Claims payable, end of year 

E-26 

$ 1,712,337 

$ 1,586,000 

$ 1,413,000 

During the current year, there were no significant reductions in insurance coverage from the prior year. The City had one 

settlement of a personal injury claim that exceeded the SIR. This is the first claim to exceed the SIR in the past four 

years. 

NOTE N: CONDUIT DEBT 

In April 1998, the former Redevelopment Agency issued $5,400,000 Variable Rate Demand Multi-family Housing 

Revenue Bonds, Series 1998 (Park-Mollison and Madison Apartments) to provide for the acquisition and rehabilitation of 

two multi-family rental housing developments owned by Madison/Mollison, L.P., a California limited partnership (the 

“Owner”). Pursuant to a Loan Agreement, the former Redevelopment Agency loaned the proceeds of the Bonds to the 

Owner for its use in financing the project. The principal and interest on the Bonds are secured solely by a pledge of 

revenues (loan repayments) under the Indenture. Therefore, the liability for the bonds is not included in the Basic 

Financial Statements. At June 30, 2012, $4,400,000 was outstanding. 

NOTE O: COMMITMENTS AND CONTINGENCIES 

Operating Leases 

The City has entered several operating leases in the conduct of its day-to-day operations to provide for services. None 

of these operating leases are considered to be significant commitments. 

Federal and State Grants 

The City has received federal and state grants for specific purposes that are subject to review and audit by the grantor 

agencies. Such audits could lead to requests for reimbursement to the grantor agency for expenditures disallowed 

under terms of the grant. City management believes such disallowances, if any, would not have a material effect on the 

City’s financial position. 

Litigation 

The City is a defendant in a number of lawsuits that have arisen in the normal course of business. While substantial 

damages are alleged in some of these actions, their outcome cannot be predicted with certainty. In the opinion of the 

City Attorney, these actions when finally adjudicated will not have a material effect on the City’s financial position. 

Audits of Certain Mandated Cost Claims Filed with the State of California 

The California State Controller, Division of Audits, conducted an audit of the costs claimed by the City of El Cajon. The 

result of the audits was a disallowance of costs claimed as unsupported, resulting in overpaid claims to the City. For the 

Animal Adoption Program, a time study was submitted to the State Controller in September 2010 and is currently under 

review. The result of the time study may result in a reduction of the overpaid claims. The overpaid amount will be offset 

from future claims submitted and allowed by the State Controller.




NOTE O: COMMITMENTS AND CONTINGENCIES (continued) 

Audit 

Total 

Program Audited Period Audited 

Report Date Disallowed 

Animal Adoption 7/01/1998-6/30/2007 9/04/2009 $1,530,967 

Photographic Record of Evidence 7/01/2002-6/30/2007 12/04/2009 319,507 

Total before offsetting claims 1,850,474 

Offsetting claims FY 2009-10 through FY 2011-12 (98,486) 

Total $1,751,988 

These audit reports are published on the California State Controller’s Office, State Mandated Costs website, 

http://www.sco.ca.gov/ard_mancost.html. 

Significant Encumbrances 

Encumbrances represent purchase orders, contracts or other commitments for the expenditure of monies. However, 

because these commitments will be honored in subsequent years, they do not constitute as expenditure or liability for 

financial statement purposes. At fiscal year-end, the City had the following significant encumbrances. 

Public Safety Center Project $ 2,448,272 

Fleet Vehicle Purchases and Outfitting 804,347 

NOTE P: JOINT POWERS AUTHORITIES 

The City is a member in two joint powers authorities at June 30, 2012. Complete financial statements for each joint 

power authority may be obtained at the City of El Cajon, Finance Department, 200 Civic Center Way, El Cajon, CA 

92020. A summary of each joint power authority, the City's participation and any related party transactions with each 

authority are as follows: 

Heartland Fire Training Authority 

The purpose of Heartland Fire Training Authority (HFTA) is to provide a fire-fighting training facility and training courses 

for personnel of the member agencies. HFTA was created on October 1, 1999, by a Joint Powers Agreement (JPA) 

between a number of cities and fire protection districts in San Diego County. For fiscal year 2011-12, the JPA members 

included: Cities of El Cajon, La Mesa, Lemon Grove, and Santee, County of San Diego, and the following fire protection 

districts, Alpine, Bonita-Sunnyside, Lakeside, and San Miguel. One elected official from each member agency is 

appointed to the HFTA board. Board members determine an annual budget based on the costs of operating the facility 

and providing training to member agency personnel. Additionally, the Barona Fire Protection District and Viejas Fire 

Department contract with HFTA so their personnel can participate in the training offered by HFTA. 

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2012. Upon 

dissolution of HFTA, all surplus money and property of HFTA will be conveyed or distributed to each member in 

proportion to all funds provided to HFTA by that member on behalf of that member during its membership. 

On October 27, 2009, HFTA entered into an updated Facility Lease Agreement with the City of El Cajon. The executed 

agreement included a proposed capital improvement project based on a prioritized list of capital improvement needs. 

The new lease agreement provides for annual rent payments of $66,500 that will be utilized by the City of El Cajon to 

fund the capital improvement project. 

E-27




NOTE P: JOINT POWERS AUTHORITIES (continued) 

The City also provides clerical and accounting services for HFTA. Charges for services were $23,837 for the fiscal year 

ending June 30, 2012. 

Heartland Communications Facility Authority 

The purpose of the Heartland Communication Facility Authority (HCFA) is to equip, maintain, operate and staff a facility 

to provide emergency call receiving and dispatching services to member agencies. HCFA was created on June 25, 

1986, by a Joint Powers Agreement (JPA) between a number of cities and fire protection districts in San Diego County. 

For fiscal year 2011-12, the JPA members included: Cities of Coronado, El Cajon, La Mesa, Lemon Grove, National 

City, and Santee, and the following fire protection districts, Alpine, Bonita-Sunnyside, Lakeside, and San Miguel. One 

elected official from each participating entity is appointed to HCFA as a board member of the commission. The 

commission approves an annual budget based on the costs of operating the Authority. Additionally, the Barona Fire 

Protection District, Sycuan Fire Department, and Viejas Fire Department contract with HCFA for emergency call 

receiving and dispatching. 

No determination has been made as to each participant’s proportionate share of fund equity as of June 30, 2012. Upon 

dissolution of HCFA, all surplus money and property of HCFA will be conveyed or distributed to each member in 

proportion to all funds provided to HCFA by that member on behalf of that member during its membership. 

HCFA leases a portion of the property located at 100 E. Lexington Avenue from the City. Lease payments totaled 

$43,416 for the fiscal year ending June 30, 2012. The City also provides clerical and accounting services for HCFA. 

Charges for services were $44,933 for the fiscal year ending June 30, 2012. 

NOTE Q: PRIOR PERIOD ADJUSTMENT 

The Housing In-Lieu Special Revenue Fund was incorrectly reported as a part of the Redevelopment Agency Special Revenue 

Fund rather than separately as the Housing In-Lieu Special Revenue Fund. 

Fund Financial Statements: Housing 

In-Lieu Special 

Revenue Fund 

Fund balance at June 30, 2011, as previously reported $ - 

Fund balance adjustment of Housing In-Lieu Special Revenue Fund 282,049 

Fund balance, beginning as restated $ 282,049 

NOTE R: SIGNIFICANT CONSTRUCTION IN PROGRESS PROJECTS 

E-28 

Redevelopment 

Agency Special 

Revenue Fund 

$ 23,707,342 

(282,049) 

$ 23,425,293 

The City has active construction projects in progress as of June 30, 2012. At year end, the City’s commitments are as 

follows: 

Total 

Costs Estimated 

Project Incurred Remaining 

Project Name 

Budget To Date Project Costs 

Animal Shelter Facility $ 7,825,000 $ 353,814 $ 7,471,186 

Chambers Senior Residences 

(a.k.a. Linda Way Senior Housing Project) 

4,500,000 2,669,809 1,830,191

NOTE S: SUBSEQUENT EVENTS 




Loan Receivable due from El Cajon Gardens, L.P. 

On August 23, 2012, El Cajon Gardens, L.P. submitted a request to modify the terms of their $832,000 HOME loan 

(Loan #1) coming due in September 2012. On December 11, 2012, the City Council approved amendments to the 

promissory note extending the maturity date to July 1, 2014. Additionally, the borrower must pay the accrued interest in 

the amount of $63,369.17 before December 31, 2012, and begin making monthly interest payments beginning January 

30, 2013. 

Settlement and Release Agreement with Ledcor Construction, Inc. 

On December 11, 2012, the City Council approved a settlement and release agreement with Ledcor Construction, Inc., 

to close out the Public Safety Center and Civic Center Improvements projects. The City has agreed to pay a settlement 

sum of $1,200,000 to resolve all outstanding requests for change orders, Ledcor’s delay claims, Ledcor’s breach of 

contract claims, and all other claims, known or unknown. Ledcor agreed to provide extended warranties related to the 

below-grade waterproofing (ten years) and the upper deck traffic coatings (five years). Further, the City and Ledcor 

each release and discharge all claims of every kind whatsoever, except as reserved specifically in the settlement and 

release agreement. 

Public Employees Pension Reform Act 

On September 12, 2012, Governor Brown signed Assembly Bill 340 (Furutani), creating the Public Employees Pension 

Reform Act (PEPRA). The new law creates a new benefit tier for new employees/members entering public agency 

employment and public retirement system membership for the first time on or after January 1, 2013. The new tier has a 

single general member benefit formula and three safety member benefit formulas that must be implemented by all public 

agency employers, including the City of El Cajon, unless the formula in existence on December 31, 2012, has both a 

lower normal cost and a lower benefit factor at normal retirement age. The new tier requires that all new 

employees/members, hired on or after January 1, 2013, pay at least 50% of the normal cost contribution. The normal 

cost contribution is the contribution set by the retirement system’s actuary to cover the cost of a current year of service. 

It does not include the unfunded liability portion of the contribution. The employer can negotiate with current and new 

employees/ members for the payment of additional contributions including the employer’s portion of normal cost and the 

unfunded liability. New employees/members have their compensation earnable, used to calculate retirement benefits, 

limited to 120% of the Social Security level ($132,120 for 2012), adjusted annually based on changes to the Consumer 

Price Index for All Urban Consumers, and further limited to base pay. Current employees will not see a change in their 

compensation earnable. Retired members, on and after January 1, 2013, will have to wait at least 180 days before 

returning to work for a covered employer on a limited time basis (960 hours or less a fiscal year). 

E-29

E‐30

MAJOR GOVERNMENTAL FUNDS 

Major governmental funds are defined as funds that meet both of the following criteria: 

Ten percent criterion - Any governmental fund that reports at least 10 percent of any of the following: total 

governmental fund assets; total governmental fund liabilities; total governmental fund revenues; or total governmental 

fund expenditures. 

Five percent criterion - Any individual governmental fund that reports at least 5 percent of the total for both 

governmental and enterprise funds of any one of the items for which it met the 10 percent criterion above. 

The General Fund is always a major fund. 

General fund - This is the City's primary operating fund. This fund accounts for all financial resources except those 

required to be accounted for in another fund. The fund will continue to exist indefinitely. 

SPECIAL REVENUE FUNDS 

The fund listed below is a major Special Revenue Fund and budgetary to actual comparison schedules is presented. 

Emergency Medical Services - This fund accounts for paramedic services, primarily funded by service charges and 

fixed charge tax assessments. 

The funds listed below are major Special Revenue Funds. Budgetary to actual comparison schedules are not 

presented for these funds as explained below. 

HOME - This fund accounts for federal grants to support local affordable housing initiatives under the Home Investment 

Partnership Program. This fund is not annually budgeted because its fund activities (housing loans), are of a long-term 

basis. 

Redevelopment Agency -This fund accounts for the monies to be utilized for housing set aside funds received from 

Agency tax increment of 20% for the purpose of developing low to moderate income housing. The assets of this fund 

was dissolved by State law on February 1, 2012, and as such, budgetary to actual comparison is not presented for this 

partial and final year. 

Housing Authority - This fund accounts for the committed, housing set-aside funds that were transferred from the 

former Redevelopment Agency when it was dissolved by State law on February 1, 2012. This fund is used to increase, 

improve, and preserve affordable housing for low and moderate income residents of El Cajon. This fund is not annually 

budgeted because its fund activities (housing loans), are of a long-term basis. 

F-1

Required Supplementary Information 


Budgetary Comparison Schedule 

General Fund 


Budgeted Amounts 

Variance with 

Original Final Actual Final Budget 

Taxes: 

Sales and use $ 21,375,000 $ 21,375,000 $ 22,466,903 $ 1,091,903 

Property 17,750,000 17,750,000 18,974,362 1,224,362 

Franchise 4,500,000 4,500,000 4,721,291 221,291 

Transient lodging 850,000 850,000 1,046,237 196,237 

Business licenses 740,000 740,000 747,522 

7,522 

Property transfer 170,000 170,000 215,861 

45,861 

Total taxes 45,385,000 45,385,000 48,172,176 2,787,176 

Intergovernmental: 

Motor vehicle license fees 350,000 

Reimbursements 505,000 

Total intergovernmental 855,000 


Charges for services: 

Planning and engineering 327,000 

Public safety 188,000 

All others 1,907,512 

Total charges for services 2,422,512 


Other: 

Fines 1,216,500 

Sale of property 2,500 

Rental income 771,500 

Miscellaneous 1,361,257 

Total other 3,351,757 


F-2 

350,000 

505,000 

855,000 

907,800 

327,000 

188,000 

1,907,512 

2,422,512 

225,000 

1,216,500 

2,500 

771,500 

1,361,257 

3,351,757 

53,147,069 

- 

671,105 

671,105 

927,820 

384,864 

473,898 

1,847,304 

2,706,066 

245,740 

1,073,953 

808,784 

806,831 

1,520,936 

4,210,504 

56,933,411 

(350,000) 

166,105 

(183,895) 

20,020 

57,864 

285,898 

(60,208) 

283,554 

20,740 

(142,547) 

806,284 

35,331 

159,679 

858,747 

3,786,342




General Fund 


(continued) 


Variance with 


General government: 

City council $ 231,801 $ 231,801 $ 209,279 $ 22,522 

Community services and events 297,140 290,140 269,861 20,279 

Centennial celebration 50,000 50,000 25,889 24,111 

Contingency 100,000 107,000 59,500 47,500 

City attorney 409,566 496,566 473,387 23,179 

City clerk and elections 298,552 370,841 336,451 34,390 

City manager 509,479 661,479 638,230 23,249 

Membership and publications 66,100 66,100 63,960 

2,140 

Finance 1,124,634 1,204,634 1,154,645 49,989 

Post retirement benefits 691,838 901,401 899,276 

2,125 

Human resources 643,187 643,187 592,567 50,620 

Information systems 657,415 657,415 672,258 (14,843) 

Business service 180,636 180,636 155,454 25,182 

Facilities maintenance 1,970,382 1,970,382 1,841,698 128,684 

ECPAC administrative services 52,651 52,651 54,140 (1,489) 

Total general government 7,283,381 7,884,233 7,446,595 437,638 

Public safety: 

Police: 

Administration 2,083,785 

Inspection and training 1,282,784 

Records 893,013 

Information systems 1,123,118 

Communications 1,932,385 

Patrol 9,748,612 

Special operations unit 1,965,736 

Traffic enforcement 1,863,018 

Investigation 3,939,014 

Laboratory 496,999 

Auxillary 115,704 

Animal control 763,302 

Total police 

Fire: 

26,207,470 

Administration 1,021,254 

Suppression 6,493,557 

Prevention 31,489 

Heartland Fire and Rescue 1,309,429 

Total fire 8,855,729 

Total public safety 35,063,199 

F-3 

2,083,785 

1,282,784 

893,013 

1,123,118 

1,932,385 

9,748,612 

1,965,736 

1,863,018 

3,939,014 

496,999 

115,704 

763,302 

26,207,470 

1,021,254 

6,493,557 

31,489 

1,309,429 

8,855,729 

35,063,199 

2,034,338 

1,231,611 

679,820 

969,500 

1,717,396 

9,567,403 

1,831,951 

1,979,168 

3,835,579 

479,128 

100,590 

752,458 

25,178,942 

1,012,142 

6,408,007 

29,392 

1,244,921 

8,694,462 

33,873,404 

49,447 

51,173 

213,193 

153,618 

214,989 

181,209 

133,785 

(116,150) 

103,435 

17,871 

15,114 

10,844 

1,028,528 

9,112 

85,550 

2,097 

64,508 

161,267 

1,189,795




General Fund 


(continued) 


Variance with 


Public works: 

Administration $ 380,528 $ 380,528 $ 364,880 $ 15,648 

Engineering 1,571,132 1,571,132 1,483,693 87,439 

Traffic engineering 1,117,543 1,117,543 982,983 134,560 

Traffic maintenance 303,528 303,528 265,947 37,581 

Street maintenance 511,286 511,286 481,706 29,580 

Total public works 3,884,017 3,884,017 3,579,209 304,808 

Parks and recreation: 

Parks 1,868,893 

Recreation 2,251,353 

Total parks and recreation 4,120,246 

Community development: 

Planning current 874,650 

Building 971,153 

Total community development 1,845,803 



over (under) expenditures 950,423 




Total other financing sources (uses) (879,566) 

Net change in fund balance 70,857 

Fund balance, beginning 20,079,095 

1,868,893 

2,251,353 

4,120,246 

917,650 

971,153 

1,888,803 

52,840,498 

306,571 

220,434 

(7,898,865) 

(7,678,431) 

(7,371,860) 

20,079,095 

1,795,459 

2,127,794 

3,923,253 

908,079 

909,592 

1,817,671 

50,640,132 

6,293,279 

218,206 

(7,815,213) 

(7,597,007) 

(1,303,728) 

20,079,095 

73,434 

123,559 

196,993 

9,571 

61,561 

71,132 

2,200,366 

5,986,708 

(2,228) 

83,652 

81,424 

6,068,132 

Fund balance, ending $ 20,149,952 $ 12,707,235 $ 18,775,367 $ 6,068,132 

F-4 

-




Emergency Medical Service Special Revenue Fund 



Variance with 


Revenues: 

Taxes $ 378,000 $ 378,000 $ 377,558 $ (442) 

Charges for services 2,740,000 2,740,000 2,773,417 

33,417 

Other - 

- 

4,753 

4,753 


Expenditures: 

Current: 




over (under) expenditures (1,261,273) 


Transfers in 1,100,000 

Total other financing sources 1,100,000 

Net change in fund balance (161,273) 

Fund balance, beginning 199,634 

3,118,000 

4,379,273 

4,379,273 

(1,261,273) 

1,350,000 

1,350,000 

88,727 

199,634 

3,155,728 

4,265,640 

4,265,640 

(1,109,912) 

1,266,348 

1,266,348 

156,436 

199,634 

37,728 

113,633 

113,633 

151,361 

(83,652) 

(83,652) 

67,709 

Fund balance, ending $ 38,361 $ 288,361 $ 356,070 $ 67,709 

F-5 

-


NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 


1. Budgetary control and accounting 

Budgets are adopted on a basis consistent with generally accepted accounting principles (GAAP) by the City 

Council annually prior to the beginning of the fiscal year. The budget process includes submittal of each 

department's budget request for the next fiscal year, a detailed review of each department's proposed 

budget by the City Manager and a final recommended budget that is transmitted to the City Council for its 

review before the required date of adoption. Once transmitted to the City Council, the proposed budget is 

made available for inspection. Prior to adoption, a budget workshop meeting is held by the City Council. A 

public hearing is held to give the public the opportunity to comment upon the proposed budget. Notice of 

such public hearing is given in a newspaper of general circulation. 

The adoption of the budget is accomplished by the approval of a Budget Resolution. Annual budgets are 

adopted for all governmental funds, except for the City's capital project funds and the CDBG, HOME 

program, El Cajon Housing Authority, and Various Donations Special Revenue funds. The level of budgetary 

control is at the department level. For purposes of this requirement, each fund other than the General Fund 

is considered to be a separate department. The City Manager is authorized to transfer appropriations within 

a departmental budget. Any appropriations transfers between departments or funds require City Council 

approval. Appropriations lapse at year-end to the extent that they have not been expended or encumbered. 

2. Expenditures in excess of appropriations 

The following departments within the General Fund had expenditures that exceeded appropriations. 

Information systems $ (14,843) 

ECPAC administrative services $ (1,489) 

3. Public Employees' Retirement System Funded Status 

For the convenience of the reader, this information has been incorporated into the Notes to the Financial 

Statements, Note J, Public Employees' Retirement System. 

4. Other Post Employment Benefits Funded Status 

For the convenience of the reader, this information has been incorporated into the notes to the basic 

financial statements, Note L, Other Post Employment Benefits. 

F-6


Combined Balance Sheet 

Non-Major Governmental Funds 

June 30, 2012 

Special Debt Capital 

Revenue Service Projects 

Funds Funds Funds Total 

Assets: 

Cash and investments $ 4,333,372 $ - $ 787,992 $ 5,121,364 

Cash and investments with fiscal agent - 2,639,328 

- 2,639,328 

Receivables: 451 

Accounts 31,200 

- 

- 31,200 


- 

895 

5,819 

Taxes 27,318 

- 

- 27,318 


- 

- 831,329 

Loans 807,150 

- 

- 807,150 

Total assets $ 6,035,293 $ 2,639,328 $ 789,338 $ 9,463,508 

Liabilities: 

Accounts payable $ 69,063 $ - $ 155,218 $ 224,281 


- 

- 41,708 

Due to other funds 132,787 

- 

- 132,787 


- 2,081 45,383 


- 

- 113,506 

Total liabilities 400,366 

Fund balance 

Restricted: 

Animal shelter 35,000 

Animal shelter project 236,244 

Community development 320,022 


Loans receivable 807,150 


Public works projects 129,599 

RTCIP impact fee - 

Streets projects 

Assigned: 

2,460,896 


Recreation programs 376,277 


- 

- 

- 

- 

2,639,328 

- 

- 

- 

- 

- 

- 

- 

2,639,328 

157,299 

- 

- 

- 

- 

- 

- 

- 

118,091 

471,809 

41,688 

- 

631,588 

557,665 

35,000 

236,244 

320,022 

2,639,328 

807,150 

1,269,739 

129,599 

118,091 

2,932,705 

41,688 

376,277 

8,905,843 

Total liabilities and fund balance $ 6,035,293 $ 2,639,328 $ 788,887 $ 9,463,508 

G-1


Combined Statement of Revenues, Expenditures and 

Changes in Fund Balance 

Non-Major Governmental Funds 


Special Debt Capital 

Revenue Service Projects 

Funds Funds Funds Total 

Revenues: 

Taxes $ - $ - $ 1,259,212 $ 1,259,212 

Intergovernmental 5,452,391 

- 

- 5,452,391 

Charges for services 768,934 

- 

451 769,385 

Investment earnings 23,342 21,512 (1,492) 43,362 

Other 468,301 

- 11,333 479,634 


Expenditures: 

Current: 






Debt service: 

521,380 

Principal 57,000 

Interest and fiscal charges 25,644 



over (under) expenditures 2,717,921 




Total other financing sources (uses) (1,254,779) 

Net change in fund balance 1,463,142 


Prior period adjustment 282,049 

Fund balance, beginning as restated 4,171,785 

21,512 

- 

- 

- 

- 

- 

- 

1,008,400 

1,008,400 

(986,888) 

1,008,400 

- 

1,008,400 

21,512 

2,617,816 

- 

2,617,816 

1,269,504 

- 

- 

31,984 

- 

1,523,465 

- 

- 

1,555,449 

(285,945) 

1,644,116 

(1,381,399) 

262,717 

(23,228) 

654,816 

- 

654,816 

8,003,984 

319,124 

1,974,692 

503,489 

625,702 

2,044,845 

57,000 

1,034,044 

6,558,896 

1,445,088 

2,663,830 

(2,647,492) 

16,338 

1,461,426 

7,162,368 

282,049 

7,444,417 

Fund balance, ending $ 5,634,927 $ 2,639,328 $ 631,588 $ 8,905,843 

G-2

NON-MAJOR SPECIAL REVENUE FUNDS 

Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally 

restricted to expenditures for specified purposes. 

Gas Tax - This fund accounts for state funds for preventive maintenance and repair of qualifying city streets. 

Transit - This fund accounts for transit monies received under the Transportation Development Act. 

Federal/County Asset Forfeiture - This fund accounts for asset forfeiture revenues and expenditures. 

Local Public Safety - This fund accounts for allocation of the state's sales tax revenue (Proposition 172) to be 

used for public safety, including sheriffs, police and fire protection. 

Recreation Special Programs - This fund accounts for revenues and expenditures for "user pay programs", 

fund-raising activities, and supply expenditures for free/low fee events. 

Housing In-Lieu Fees - This fund accounts for in-lieu fees received from developers as an alternative to 

constructing the affordable housing units. These funds will be utilized by the City to support the development 

of affordable housing units. 

Federal, State and Local Grants - This fund accounts for various federal, state and local grants. 

CDBG (Community Development Block Grants) - This fund accounts for federal grants for public facilities, 

capital improvements, and public services. This fund is not annually budgeted because fund activities are of a 

long-term basis. 

Various Donations - This fund accounts for various donations received used to pay for specific functions 

and/or programs of the city. This fund is not annually budgeted because donations vary greatly from year to 

year. 

H-1

Budgeted 

Federal/ 

County Local Recreation 

Asset Public Special 

Gas Tax Transit Forfeiture Safety Programs 

Assets: 

Cash and investments 

Receivables: 

$ 1,531,376 $ 679,081 $ 472,902 $ 510,128 $ 517,878 

Accounts - 

- 

- 

- 31,200 

Interest - 1,573 1,100 1,071 

- 

Taxes - 

- 

- 27,318 

- 


- 

- 

- 

- 

Loans - 

- 

- 

- 

- 

Total assets $ 1,814,014 $ 680,654 $ 474,002 $ 538,517 $ 549,078 

Liabilities: 



Due to other funds - 

Deposits - 

Deferred revenue - 


Fund balance 

Restricted: 

Animal shelter - 

Animal shelter project - 


Loans receivable - 


Public works projects - 

Streets projects 1,784,214 

Assigned: 

Recreation programs - 



Combining Balance Sheet 

Non-Major Special Revenue Funds 

June 30, 2012 

2,716 

1,256 

- 

- 

- 

3,972 

- 

- 

- 

- 

- 

- 

676,682 

- 

676,682 

809 

- 

- 

- 

- 

809 

- 

- 

- 

- 

473,193 

- 

- 

- 

473,193 

36 

- 

- 

- 

- 

36 

- 

- 

- 

- 

538,481 

- 

- 

- 

538,481 

2,966 

13,027 

- 

43,302 

113,506 

172,801 

- 

- 

- 

- 

- 

- 

- 

376,277 

376,277 

Total liabilities 

and fund balance $ 1,814,014 $ 680,654 $ 474,002 $ 538,517 $ 549,078 

H-2

Budgeted 

Federal, 

Unbudgeted 

Housing State, and Total Non-Major 

In-Lieu Local Various Special Revenue 

Fees Grants CDBG Donations Funds 

$ 283,035 $ 67,208 $ - $ 271,764 $ 4,333,372 

- 

647 

- 

- 

- 

- 

533 

- 

337,971 

474,174 

- 

- 

- 

210,720 

332,976 

- 

- 

- 

- 

- 

31,200 

4,924 

27,318 

831,329 

807,150 

$ 283,682 $ 879,886 $ 543,696 $ 271,764 $ 6,035,293 

- 

- 

- 

- 

- 

- 

- 

- 

283,682 

- 

- 

- 

- 

- 

283,682 

14,826 

3,222 

- 

- 

- 

18,048 

- 

- 

- 

474,174 

258,065 

129,599 

- 

- 

861,838 

38,780 

3,333 

132,787 

- 

- 

174,900 

- 

- 

35,820 

332,976 

- 

- 

- 

- 

368,796 

- 

- 

- 

- 

- 

- 

35,000 

236,244 

520 

- 

- 

- 

- 

- 

271,764 

69,063 

41,708 

132,787 

43,302 

113,506 

400,366 

35,000 

236,244 

320,022 

807,150 

1,269,739 

129,599 

2,460,896 

376,277 

5,634,927 

$ 283,682 $ 879,886 $ 543,696 $ 271,764 $ 6,035,293 

H-3


Combining Statement of Revenues, Expenditures and Changes in Fund Balance 

Non-Major Special Revenue Funds 


Budgeted 

Federal/ 

County Local Recreation 

Asset Public Special 

Gas Tax Transit Forfeiture Safety Programs 

Revenues: 

Intergovernmental $ 2,804,122 $ - $ - $ 319,832 $ 3,000 

Charges for services - 350,887 

- 

- 418,047 

Investment earnings 9,322 5,125 3,089 2,415 

- 

Other 18,529 

- 364,141 

- 75,595 


Expenditures: 

Current: 



Parks and recreation - 



Debt service: 

119,369 

Principal - 

Interest and fiscal charges - 






Transfers out - 

Total other financing 

sources (uses) - 



Prior period adjustment - 

Fund balance, beginning as restated 914,816 

356,012 

- 

131,486 

- 

- 

63,819 

- 

- 

195,305 

160,707 

- 

(25,963) 

(25,963) 

134,744 

541,938 

- 

541,938 

367,230 

94,183 

- 

- 

- 

24,934 

- 

- 

119,117 

248,113 

- 

- 

- 

248,113 

225,080 

- 

225,080 

322,247 

27,039 

- 

- 

- 

112,372 

- 

- 

139,411 

182,836 

- 

(95,000) 

(95,000) 

87,836 

450,645 

- 

450,645 

496,642 

- 

- 

471,505 

- 

7,110 

- 

- 

478,615 

18,027 

- 

- 

- 

18,027 

358,250 

- 

358,250 

Fund balance, ending $ 1,784,214 $ 676,682 $ 473,193 $ 538,481 $ 376,277 

H-4

Budgeted 

Federal, 

Unbudgeted 

Housing State, and Total Non-Major 

In-Lieu Local Various Special Revenue 

Fees Grants CDBG Donations Funds 

$ - $ 1,088,582 $ 1,236,855 $ - $ 5,452,391 

- 

- 

- 

- 

768,934 

1,633 1,758 

- 

- 

23,342 

- 

- 

55 9,981 

468,301 

1,633 

- 

- 

- 

- 

- 

- 

- 

- 

1,633 

- 

- 

- 

1,633 

- 

282,049 

282,049 

1,090,340 

197,902 

- 

- 

205,471 

193,776 

- 

- 

597,149 

493,191 

- 

(378,109) 

(378,109) 

115,082 

746,756 

- 

746,756 

1,236,910 

- 

- 

- 

420,231 

- 

57,000 

25,644 

502,875 

734,035 

- 

(767,021) 

(767,021) 

(32,986) 

401,782 

- 

401,782 

9,981 

- 

- 

- 

- 

- 

- 

- 

- 

9,981 

11,314 

- 

11,314 

21,295 

250,469 

- 

250,469 

6,712,968 

319,124 

1,974,692 

471,505 

625,702 

521,380 

57,000 

25,644 

3,995,047 

2,717,921 

11,314 

(1,266,093) 

(1,254,779) 

1,463,142 

3,889,736 

282,049 

4,171,785 

$ 283,682 $ 861,838 $ 368,796 $ 271,764 $ 5,634,927 

H-5


Schedule of Revenues, Expenditures and Changes in Fund Balance 

Gas Tax Special Revenue Fund 

Budget and Actual 



Variance with 


Revenues: 

Intergovernmental $ 2,690,590 $ 2,690,590 $ 2,804,122 $ 113,532 

Investment earnings - 

- 

9,322 

9,322 

Other - 

- 18,529 18,529 


Expenditures: 

Current: 


Capital outlay 310,000 




Other financing sources: 


Total other financing sources (300,000) 



2,690,590 

2,027,404 

310,000 

2,337,404 

353,186 

(300,000) 

(300,000) 

53,186 

914,816 

2,831,973 

1,843,206 

119,369 

1,962,575 

869,398 

- 

- 

869,398 

914,816 

141,383 

184,198 

190,631 

374,829 

516,212 

300,000 

300,000 

816,212 

Fund balance, ending $ 968,002 $ 968,002 $ 1,784,214 $ 816,212 

H-6 

-



Transit Special Revenue Fund 




Variance with 


Revenues: 

Intergovernmental $ 100,000 $ 100,000 $ - $ (100,000) 

Charges for services 193,750 193,750 350,887 157,137 


3,000 

5,125 

2,125 

Total revenues 296,750 

Expenditures: 

Current: 

Public works 196,623 


Total expenditures 412,355 


over (under) expenditures (115,605) 






296,750 

215,244 

215,732 

430,976 

(134,226) 

(61,663) 

(61,663) 

(195,889) 

541,938 

356,012 

131,486 

63,819 

195,305 

160,707 

(25,963) 

(25,963) 

134,744 

541,938 

59,262 

83,758 

151,913 

235,671 

294,933 

35,700 

35,700 

330,633 


H-7 

-



Federal/County Asset Forfeiture Special Revenue Fund 




Variance with 


Revenues: 

Investment earnings $ 1,000 $ 1,000 $ 3,089 $ 2,089 

Other 40,000 40,000 364,141 324,141 


Expenditures: 

Current: 





over (under) expenditures (105,492) 



41,000 

119,900 

26,592 

146,492 

(105,492) 

(105,492) 

225,080 

367,230 

94,183 

24,934 

119,117 

248,113 

248,113 

225,080 

326,230 

25,717 

1,658 

27,375 

353,605 

353,605 


H-8 

-



Local Public Safety Special Revenue Fund 




Variance with 


Revenues: 

Intergovernmental $ 285,000 $ 285,000 $ 319,832 $ 34,832 


2,000 

2,415 

415 


Expenditures: 

Current: 











287,000 

19,590 

138,150 

157,740 

129,260 

(95,000) 

(95,000) 

34,260 

450,645 

322,247 

27,039 

112,372 

139,411 

182,836 

(95,000) 

(95,000) 

87,836 

450,645 

35,247 

(7,449) 

25,778 

18,329 

53,576 

- 

- 

53,576 


H-9 

-



Recreation Special Revenue Fund 




Variance with 


Revenues: 

Intergovernmental $ 1,500 $ 1,500 $ 3,000 $ 1,500 

Charges for services 449,685 449,685 418,047 (31,638) 

Other 73,135 32,000 75,595 43,595 


Expenditures: 

Current: 









Net change in fund balance - 


483,185 

511,210 

7,110 

518,320 

(35,135) 

(6,000) 

(6,000) 

(41,135) 

358,250 

496,642 

471,505 

7,110 

478,615 

18,027 

- 

- 

18,027 

358,250 

13,457 

39,705 

- 

39,705 

53,162 

6,000 

6,000 

59,162 


H-10 

-



Housing In Lieu Fees Special Revenue Fund 




Variance with 


Revenues: 

Investment earnings $ 1,390 $ 1,390 $ 1,633 $ 243 


Expenditures - 

Total expenditures - 




Fund balance, beginning - 

Prior period adjustment - 

Fund balance, beginning as restated - 

1,390 

- 

- 

1,390 

1,390 

- 

- 

- 

1,633 

- 

- 

1,633 

1,633 

- 

282,049 

282,049 

243 

- 

- 

243 

243 

- 

(282,049) 

(282,049) 

Fund balances, ending $ 1,390 $ 1,390 $ 283,682 $ (281,806) 

H-11



Federal, State, and Local Grants Special Revenue Fund 




Variance with 


Revenues: 

Intergovernmental $ 1,255,760 $ 1,561,116 $ 1,088,582 $ (472,534) 

Investment earnings 500 

500 

1,758 

1,258 


Expenditures: 

Current: 












1,561,616 

660,294 

375,355 

290,352 

1,326,001 

235,615 

(595,472) 

(595,472) 

(359,857) 

746,756 

1,090,340 

197,902 

205,471 

193,776 

597,149 

493,191 

(378,109) 

(378,109) 

115,082 

746,756 

(471,276) 

462,392 

169,884 

96,576 

728,852 

257,576 

217,363 

217,363 

474,939 


H-12 

-

NON-MAJOR DEBT SERVICE FUND 

DEBT SERVICE FUNDS 

Debt Service Funds are used to account for the accumulation of resources for the payment of general long-term 

debt principal and interest. 

MAJOR DEBT SERVICE FUND 

Redevelopment Agency - This fund accounts for the monies to be utilized for the payment of Redevelopment 

Agency long-term obligations which are financed by tax increment and lease revenues. The assets of this fund was 

dissolved by State law on February 1, 2012, and as such, budgetary to actual comparison is not presented for this 

partial and final year. 

Public Safety Facility - This fund accounts for the monies to be utilized for the payment of revenue bonds which 

are financed by 1/2% sales tax revenues received by the City pursuant to Proposition O, passed by the voters in 

November 2004. 

I-1


Balance Sheet 

Public Safety Facility Debt Service Fund 

June 30, 2012 

Assets: 

Cash and investments with fiscal agent $ 2,639,328 

Total assets $ 2,639,328 

Fund balance: 

Restricted 

Debt service $ 2,639,328 

Total fund balance $ 2,639,328 

I-2



Public Safety Facility Debt Service Fund 




Variance with 


Revenues: 

Investment earnings $ 5,000 $ 5,000 $ 21,512 $ 16,512 


Expenditures: 

Debt service: 

Interest and fiscal charges 1,008,400 






Total other financing sources 1,008,400 



5,000 

1,008,400 

1,008,400 

(1,003,400) 

1,008,400 

1,008,400 

5,000 

2,617,816 

21,512 

1,008,400 

1,008,400 

(986,888) 

1,008,400 

1,008,400 

21,512 

2,617,816 

16,512 

- 

- 

16,512 

- 

- 

16,512 

Fund balance, ending $ 2,622,816 $ 2,622,816 $ 2,639,328 $ 16,512 

I-3 

-

I‐4

MAJOR CAPITAL PROJECTS FUND 

Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of 

major capital facilities (other than those financed by proprietary funds and fiduciary funds). 

The following Capital Projects Funds have been classified as major funds in the accompanying financial statements 

and budgetary to actual comparison schedules are presented. 

City Capital Improvement Program - This fund was established to account for repairs, improvements and the 

preservation of City owned facilities and equipment, additional public buildings and the acquisition of land. 

Public Safety Facility - This fund was established to account for activities associated with the construction of a new 

public safety center and animal shelter, as well as upgrades to existing fire stations. These projects are funded by a 

½% sales tax that was approved by voters in November 2004 and will be in place for ten years. 

The following Capital Project Fund has also been classified as a major fund. However, a budgetary to actual 

comparison schedule is not presented for this fund as explained below. 

Redevelopment Agency Capital Improvement Program - This fund was established to account for monies to be 

utilized for construction or acquisition of public improvements of the Agency. The assets of this fund was dissolved 

by State law on February 1, 2012 and as such, budgetary to actual comparison is not presented for this partial and 

final year. 

J-1



City Capital Improvement Program Project Fund 




Variance with 


Revenues: 

Other $ 248,500 $ 408,500 $ 155,619 $ (252,881) 


Expenditures: 



Excess (deficiency) of revenues over 

(under) expenditures (3,622,198) 

Other financing (uses): 



Total other financing (uses) 1,535,348 

Net change in fund balance (2,086,850) 


408,500 

3,940,006 

3,940,006 

(3,531,506) 

6,066,213 

(350,200) 

5,716,013 

2,184,507 

2,959,402 

155,619 

1,299,786 

1,299,786 

(1,144,167) 

5,344,836 

(19,543) 

5,325,293 

4,181,126 

2,959,402 

(252,881) 

2,640,220 

2,640,220 

2,387,339 

(721,377) 

330,657 

(390,720) 

1,996,619 

Fund balance, ending $ 872,552 $ 5,143,909 $ 7,140,528 $ 1,996,619 

J-2 

-



Public Safety Facility Project Fund 




Variance with 


Revenues: 

Taxes $ 7,400,000 $ 7,400,000 $ 7,674,879 $ 274,879 

Investment earnings 100,000 100,000 62,718 (37,282) 

Other - 

- 79,764 

79,764 


Expenditures: 



Excess (deficiency) of revenues over 

(under) expenditures (3,525,447) 

Other financing (uses): 


Total other financing (uses) (1,008,400) 

Net change in fund balance (4,533,847) 


7,500,000 

13,084,776 

13,084,776 

(5,584,776) 

(1,008,400) 

(1,008,400) 

(6,593,176) 

14,918,040 

7,817,361 

4,187,545 

4,187,545 

3,629,816 

(1,008,400) 

(1,008,400) 

2,621,416 

14,918,040 

317,361 

8,897,231 

8,897,231 

9,214,592 

- 

- 

9,214,592 

Fund balance, ending $ 10,384,193 $ 8,324,864 $ 17,539,456 $ 9,214,592 

J-3 

-

NON-MAJOR CAPITAL PROJECTS FUNDS 

Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of 

major capital facilities (other than those financed by proprietary funds and fiduciary funds). The following Capital 

Projects Funds have been classified as non-major funds in the accompanying financial statements. 

Public Works Projects - This fund was created to account for research, planning, construction, improvement, 

maintenance, and operation of public streets and highways and their related public facilities for non-motorized traffic. 

Streets Projects - This fund was established to account for major street construction projects funded through TransNet 

(½% special sales tax), Specific Street Obligations, and Gas Tax. Expenditures in this fund are restricted to 

improvements in the City's transit and street system. 

Parks and Recreation Improvement Grants - This fund was established to account for state grants to repair and 

improve City recreational facilities. 

Parks Impact Fees - This fund was established to account for City financed park and recreational improvements 

financed with park impact fees. 

J-4


Combining Balance Sheet 

Non-Major Capital Projects Funds 

June 30, 2012 

Parks and Total 

Public Recreation Parks Non-major 

Works Streets Improvement Impact Capital Projects 

Projects Projects Grants Fees Funds 

Assets: 


Receivables: 

$ 123,298 $ 623,101 $ - $ 41,593 $ 787,992 

Interest 274 

526 

- 

95 

895 

Total assets $ 123,572 $ 623,627 $ - $ 41,688 $ 788,887 

Liabilities: 

Accounts payable $ 3,400 $ 151,818 $ - $ - $ 155,218 


- 

- 

- 

2,081 


Fund balance 

Restricted: 

RTCIP impact fee 118,091 

Streets projects - 

Assigned: 


Total fund balance 118,091 

151,818 

- 

471,809 

- 

471,809 

- 

- 

- 

- 

- 

- 

- 

- 

41,688 

41,688 

157,299 

118,091 

471,809 

41,688 

631,588 

Total liabilities 

and fund balance $ 123,572 $ 623,627 $ - $ 41,688 $ 788,887 

J-5


Combining Statement of Revenues, Expenditures and Changes in Fund Balance 

Non-Major Capital Projects Funds 


Parks and 

Total 

Non-major 

Public Recreation Parks Capital 

Works Streets Improvement Impact Projects 

Projects Projects Grants Fees Funds 

Revenues: 

Taxes $ - $ 1,247,000 $ - $ 12,212 $ 1,259,212 

Charges for services 451 

- 

- 

- 

451 

Investment earnings 710 (2,389) 

- 

187 

(1,492) 

Other 11,333 

- 

- 

- 

11,333 


Expenditures: 

Current: 

Parks and recreation - 







Transfers out - 

Total other financing sources (uses) 1,512,132 



1,244,611 

- 

- 

- 

1,244,611 

100,000 

(1,368,957) 

(1,268,957) 

(24,346) 

496,155 

- 

31,984 

- 

31,984 

(31,984) 

31,984 

- 

31,984 

- 

- 

12,399 

- 

- 

- 

12,399 

- 

(12,442) 

(12,442) 

(43) 

41,731 

1,269,504 

31,984 

1,523,465 

1,555,449 

(285,945) 

1,644,116 

(1,381,399) 

262,717 

(23,228) 

654,816 

Fund balance, ending $ 118,091 $ 471,809 $ - $ 41,688 $ 631,588 

J-6

ENTERPRISE FUND 

Enterprise Funds are used to account for activities where fees are charged to external users for goods or services. 

Wastewater - This fund accounts for the sanitary sewer disposal and maintenance of the City's sewer lines and 

related facilities. It is a self-supporting activity that provides services on a user charge basis to residences and 

businesses. 

The Statement of Net Assets, Statement of Revenues, Expenses, and Changes in Net Assets, and Statement of 

Cash Flows for this fund are displayed on pages D-10, D-11, and D-12 as it is the sole enterprise fund. 

K-1


Schedule of Revenues, Expenditures and Changes in Fund Net Assets 

Wastewater Enterprise Fund 




Variance with 



Charges for services $ 11,077,624 $ 11,077,624 $ 13,370,880 $ 2,293,256 


9,000 

6,600 

(2,400) 

Fines 7,500 

7,500 

4,746 

(2,754) 



Salaries and benefits 3,174,710 


Depreciation - 


Operating (loss) (6,656,678) 



Other revenue - 

(Loss) on disposal of assets - 

Total non-operating revenues 200,000 

(Loss) before capital contributions 

and transfers (6,456,678) 

Operating transfers: 


Total operating transfers (51,400) 


Net assets, beginning 58,964,214 

11,094,124 

3,174,710 

14,854,826 

- 

18,029,536 

(6,935,412) 

200,000 

- 

- 

200,000 

(6,735,412) 

(51,400) 

(51,400) 

(6,786,812) 

58,964,214 

13,382,226 

2,857,867 

11,841,839 

1,698,789 

16,398,495 

(3,016,269) 

82,552 

1,482,849 

(17,071) 

1,548,330 

(1,467,939) 

(5,682) 

(5,682) 

(1,473,621) 

58,964,214 

2,288,102 

316,843 

3,012,987 

(1,698,789) 

1,631,041 

3,919,143 

(117,448) 

1,482,849 

(17,071) 

1,348,330 

5,267,473 

45,718 

45,718 

5,313,191 

Net assets, ending $ 52,456,136 $ 52,177,402 $ 57,490,593 $ 5,313,191 

K-2 

-

INTERNAL SERVICE FUNDS 

Internal Service Funds are used to account for the financing of goods or services provided by one fund, or department, 

to other funds, or departments, on a cost-reimbursement basis. 

Vehicle Maintenance - This fund accounts for maintenance and operating expenses of the City's automotive and 

equipment fleets. 

Vehicle and Equipment Replacement - This fund accounts for the replacement of the City's automotive and 

equipment fleets. 

Self-Insurance - This fund accounts for liability insurance premiums, payment of claims and to establish reserves 

against future claims. 

IT Replacement - This fund accounts for the replacement of the City's information technology equipment. 

Other Post-Employment Benefits - This fund accounts for post-employment benefits of the City including annual 

required contribution in accordance with GASB Statement 45 and terminal conversions of vacation and sick time. 

L-1

Vehicle and Other Post 

Vehicle Equipment Self IT Employment 

Maintenance Replacement Insurance Replacement Benefits Total 

Assets: 

Current assets: 

Cash and investments $ 214,812 $ 4,502,691 $ 4,566,570 $ 1,924,096 $ 118,517 $ 11,326,686 

Total current assets 214,812 

Non-current assets: 

Capital assets, being 

depreciated net: 

Machinery and equipment 7,829 

Total non-current assets 7,829 

4,502,691 

2,736,977 

2,736,977 

4,566,570 

- 

- 

1,924,096 

17,594 

17,594 

118,517 

Total assets 222,641 7,239,668 4,566,570 1,941,690 118,517 

Liabilities: 

Current liabilities: 



Claims payable-current - 

Total current liabilities 112,892 

Non-current liabilities: 

Claims payable - 


Total non-current liabilities 107,515 


Net assets: 

Invested in capital assets 7,829 

Unrestricted (5,595) 


Combining Statement of Net Assets 


June 30, 2012 

91,050 

- 

- 

91,050 

- 

- 

- 

91,050 

2,736,977 

4,411,641 

27,461 

- 

500,000 

527,461 

1,212,337 

- 

1,212,337 

1,739,798 

- 

2,826,772 

23,348 

- 

- 

23,348 

- 

- 

- 

23,348 

17,594 

1,900,748 

- 

- 

5,100 

- 

- 

5,100 

- 

- 

- 

5,100 

- 

113,417 

11,326,686 

2,762,400 

2,762,400 

14,089,086 

224,013 

35,838 

500,000 

759,851 

1,212,337 

107,515 

1,319,852 

2,079,703 

2,762,400 

9,246,983 

Total net assets $ 2,234 $ 7,148,618 $ 2,826,772 $ 1,918,342 $ 113,417 $ 12,009,383 

L-2


Combining Statement of Revenues, Expenditures and Changes in Fund Net Assets 







Charges for services $ 2,100,000 $ 102,032 $ 1,500,000 $ 391,800 $ 1,117,462 $ 5,211,294 



Salaries and benefits 653,224 


Insurance claims/premiums 3,968 

Depreciation 1,468 


Operating income (loss) (91,541) 



Gain on disposal of machinery 

and equipment - 

Total non-operating revenues 2,535 

Income before operating 

transfers (89,006) 

Operating transfers: 


Total operating transfers - 

Change in net assets (89,006) 

Net assets, beginning 91,240 

102,032 

- 

93,389 

- 

543,745 

637,134 

(535,102) 

- 

23,878 

23,878 

(511,224) 

1,503,153 

1,503,153 

991,929 

6,156,689 

1,500,000 

117,584 

133,208 

967,368 

- 

1,218,160 

281,840 

8,855 

- 

8,855 

290,695 

- 

- 

290,695 

2,536,077 

391,800 

- 

526,559 

- 

6,032 

532,591 

(140,791) 

- 

- 

- 

(140,791) 

608,200 

608,200 

467,409 

1,450,933 

1,117,462 

1,090,834 

10,159 

- 

- 

1,100,993 

16,469 

80,184 

- 

80,184 

96,653 

- 

- 

96,653 

16,764 

5,211,294 

1,861,642 

2,296,196 

971,336 

551,245 

5,680,419 

(469,125) 

91,574 

23,878 

115,452 

(353,673) 

2,111,353 

2,111,353 

1,757,680 

10,251,703 

Net assets, ending $ 2,234 $ 7,148,618 $ 2,826,772 $ 1,918,342 $ 113,417 $ 12,009,383 

L-3




Cash flows from operating activities: 

Receipts from charges to other funds $ 2,100,000 $ 102,032 $ 1,500,000 $ 391,800 $ 1,117,462 $ 5,211,294 

Payments to suppliers (1,544,188) (2,339) (970,193) (564,555) (5,059) (3,086,334) 

Payments to employees (659,040) 

- (121,311) 

- (1,090,834) (1,871,185) 

Net cash provided by (used for) 

operating activities (103,228) 

Cash flows from noncapital financing activities: 

Transfer in from other funds - 


Net cash provided by noncapital 

financing activities 2,535 

Cash flows from capital and related financing activities: 

Acquisitions of vehicles and equipment - 

Proceeds from sale of vehicles and equipment - 

Net cash (used for) capital and 

related financing activities - 

Net increase (decrease) in cash and 

cash equivalents (100,693) 

Cash and cash equivalents, beginning 315,505 

99,693 

1,503,153 

- 

1,503,153 

(665,696) 

44,747 

(620,949) 

981,897 

3,520,794 

408,496 

- 

8,855 

8,855 

- 

- 

- 

417,351 

4,149,219 

(172,755) 

608,200 

- 

608,200 

- 

- 

- 

435,445 

1,488,651 

21,569 

- 

80,184 

80,184 

- 

- 

- 

101,753 

16,764 

253,775 

2,111,353 

91,574 

2,202,927 

(665,696) 

44,747 

(620,949) 

1,835,753 

9,490,933 

Cash and cash equivalents, ending $ 214,812 $ 4,502,691 $ 4,566,570 $ 1,924,096 $ 118,517 $ 11,326,686 

Reconciliation of operating income (loss) to net cash 

provided by (used for) operating activities: 

Operating income (loss) 

Adjustments to reconcile operating income 

(loss) to net cash provided by (used for) 

operating activities: 

$ (91,541) $ (535,102) $ 281,840 $ (140,791) $ 16,469 $ (469,125) 

Depreciation expense 

Changes in current assets and liabilities: 

1,468 543,745 

- 

6,032 

- 551,245 

Increase (decrease) in accounts payable (24,979) 91,050 

319 (37,996) 5,100 33,494 

Increase in claims payable 

Increase in compensated 

- 

- 126,337 

- 

- 126,337 

absences payable 11,824 

- 

- 

- 

- 11,824 

Total adjustments (11,687) 


Combining Statement of Cash Flows 



634,795 

126,656 

(31,964) 

5,100 

722,900 

Net cash provided by (used for) 

operating activities $ (103,228) $ 99,693 $ 408,496 $ (172,755) $ 21,569 $ 253,775 

L-4

PRIVATE-PURPOSE TRUST FUND: 

FIDUCIARY FUNDS 

Fiduciary funds are used to account for assets held by the City in a purely custodial capacity for other funds, 

governments or individuals. 

AGENCY FUNDS: 

Miscellaneous Deposits - These funds account for various types of deposits. 

Heartland Communication Facility Authority - This fund accounts for activities to provide emergency call receiving 

and dispatching services to participating agencies. 

Heartland Fire Training Authority - This fund accounts for activities of fire fighting and training of personnel for the 

participating agencies. 

Successor Agency to the Former El Cajon Redevelopment Agency - This fund accounts for the operations and 

timely dissolution of the former Redevlopment Agency. 

The Statement of Changes in Fiduciary Net Assets for this fund is displayed on page D-14 as it is the sole private 

purpose trust fund. 

M-1


Combining Statement of Fiduciary Assets and Liabilities 

Agency Funds 

June 30, 2012 

Heartland Heartland 

Miscellaneous Communications Fire Training 

Deposits Facility Authority Authority Total 

Assets: 


Receivables: 

$ 140,058 $ 387,852 $ 218,108 $ 746,018 

Accounts - 

165,518 

153,303 

318,821 

Interest - 

1,310 

763 

2,073 

Prepaid expenses - 

502 

- 

502 

Total assets $ 140,058 $ 555,182 $ 372,174 $ 1,067,414 

Liabilities: 

Accounts payable $ 2,578 $ 9,950 $ 21,189 $ 33,717 

Accrued liabilities - 

37,696 

- 

37,696 


400,000 

479,800 

Sundry agency liabilities 137,480 

427,736 

(49,015) 

516,201 

Total liabilities $ 140,058 $ 555,182 $ 372,174 $ 1,067,414 

M-2


Combining Statement of Changes in Fiduciary Assets and Liabilities 

Agency Funds 


Beginning Ending 

Balance Additions Deletions Balance 

Miscellaneous Deposits 

Assets: 

Cash and investments $ 142,156 $ 618,756 $ (620,854) $ 140,058 

Total assets $ 142,156 $ 618,756 $ (620,854) $ 140,058 

Liabilities: 

Accounts payable $ - $ 2,578 $ - $ 2,578 

Sundry agency liabilities 142,156 616,178 (620,854) 137,480 

Total liabilities $ 142,156 $ 618,756 $ (620,854) $ 140,058 


Assets: 


Receivables: 

$ 611,503 $ 2,957,770 $ (3,181,421) $ 387,852 

Accounts 74,322 355,708 (264,512) 165,518 

Interest - 

1,310 

- 

1,310 


502 

- 

502 

Total assets $ 685,825 $ 3,315,290 $ (3,445,933) $ 555,182 

Liabilities: 


Accrued liabilities - 37,696 

- 

37,696 

Deferred revenue - 79,800 

- 

79,800 

Sundry agency liabilities 685,825 3,187,844 (3,445,933) 427,736 

Total liabilities $ 685,825 $ 3,315,290 $ (3,445,933) $ 555,182 

M-3

Heartland Fire Training Authority 

Assets: 


Combining Statement of Changes in Fiduciary Assets and Liabilities 

Agency Funds (continued) 


Beginning Ending 

Balance Additions Deletions Balance 


Receivables: 

$ 408,739 $ 1,282,151 $ (1,472,782) $ 218,108 

Accounts 2,903 153,303 (2,903) 153,303 

Interest - 

763 

- 

763 

Total assets $ 411,642 $ 1,436,217 $ (1,475,685) $ 372,174 

Liabilities: 



- 400,000 

Sundry agency liabilities 411,642 1,015,028 (1,475,685) (49,015) 

Total liabilities $ 411,642 $ 1,436,217 $ (1,475,685) $ 372,174 

Total Agency Funds 

Assets: 


Receivables: 

$ 1,162,398 $ 4,858,677 $ (5,275,057) $ 746,018 

Accounts 77,225 509,011 (267,415) 318,821 

Interest - 

2,073 

- 

2,073 


502 

- 

502 

Total assets $ 1,239,623 $ 5,370,263 $ (5,542,472) $ 1,067,414 

Liabilities: 


Accrued liabilities - 37,696 

- 

37,696 


- 479,800 

Sundry agency liabilities 1,239,623 4,819,050 (5,542,472) 516,201 

Total liabilities $ 1,239,623 $ 5,370,263 $ (5,542,472) $ 1,067,414 

M-4

STATISTICAL SECTION 

The Statistical Section presents detailed information as a context for understanding what the information in the 

financial statements, note disclosures, and required supplementary information say about the City's overall financial 

health. 

Financial Trends N- 2 to N-11 

These schedules contain trend information to help the reader understand how the City's financial performance and 

well-being have changed over time. 

Revenue Capacity N-12 to N-21 

These schedules contain information to help the reader assess the City's most significant local revenue source, 

property tax. 

Debt Capacity N-22 to N-28 

These schedules present information to help the reader assess the affordability of the City's current levels of 

outstanding debt and the City's ability to issue additional debt in the future. 

Demographic and Economic Information 

N-29 to N-31 

These schedules offer demographic and economic indicators to help the reader understand the environment within 

which the City's financial activities take place. 

Operating Information N-32 to N-36 

These schedules contain service and infrastructure data to help the reader understand how the information in the 

City's financial statements relates to the services the City provides and the activities it performs. 

N-1

Governmental activities 

2003 2004 2005 2006 

Invested in capital assets, net of related debt $ 138,334,297 $ 147,900,462 $ 147,351,227 $ 148,556,520 

Restricted 28,578,289 32,507,994 

Unrestricted (17,846,090) (25,937,006) 

30,256,264 

(22,920,789) 

42,169,594 

(23,676,154) 

Total governmental activities net assets $149,066,496 $ 154,471,450 $ 154,686,702 $ 167,049,960 

Business-type activities 

Invested in capital assets, net of related debt $41,035,204 $ 45,323,866 $ 51,948,046 $ 49,699,412 

Restricted - 

Unrestricted 19,609,417 20,148,483 

- 

- 

16,246,873 

- 

17,718,411 

Total business-type activities net assets $60,644,621 $ 65,472,349 $ 68,194,919 $ 67,417,823 

Primary government 

Invested in capital assets, net of related debt $179,369,501 $ 193,224,328 $ 199,299,273 $ 198,255,932 

Restricted 28,578,289 32,507,994 

Unrestricted 1,763,327 (5,788,523) 


Net Assets by Component 

Last Ten Fiscal Years 

(accrual basis of accounting) 

Fiscal Year 

30,256,264 

(6,673,916) 

42,169,594 

(5,957,743) 

Total primary government net assets $209,711,117 $ 219,943,799 $ 222,881,621 $ 234,467,783 

Notes: 

a The El Cajon Redevelopment Agency was dissolved effective 02/01/2012 and its non-housing assets and obligations 

were transferred to the Successor Agency. See the Notes to the Financial Statements for more information. 

N-2

2007 2008 2009 2010 2011 2012 

$ 156,282,116 $ 161,827,481 $ 162,657,834 $ 171,879,175 $ 184,845,829 $ 187,945,040 

58,098,218 

(28,324,073) 

67,921,281 

(29,726,473) 

82,298,521 

(32,573,207) 

63,263,584 

(12,336,332) 

60,158,904 

(4,176,060) 

26,801,369 

56,465,120 

$ 186,056,261 $ 200,022,289 $ 212,383,148 $ 222,806,427 $ 240,828,673 $ 271,211,529 

$ 38,297,123 $ 36,149,131 $ 37,622,872 $ 36,625,278 $ 37,372,058 $ 37,954,007 

- 

30,309,060 

- 

30,556,232 

- 

28,264,958 

- 

26,124,508 

- 

21,592,156 

- 

19,536,586 

$ 68,606,183 $ 66,705,363 $ 65,887,830 $ 62,749,786 $ 58,964,214 $ 57,490,593 

$ 194,579,239 $ 197,976,612 $ 200,280,706 $ 208,504,453 $ 222,217,887 $ 225,899,047 

58,098,218 

1,984,987 

67,921,281 

829,759 

82,298,521 

(4,308,249) 

Fiscal Year 

63,263,584 

13,788,176 

60,158,904 

17,416,096 

26,801,369 

76,001,706 

$ 254,662,444 $ 266,727,652 $ 278,270,978 $ 285,556,213 $ 299,792,887 $ 328,702,122 

N-3 

a





Fiscal Year 

2003 2004 2005 2006 

Expenses 


General government $ 5,462,074 $ 6,082,985 $ 6,802,886 $ 5,667,586 

Public safety 30,490,329 38,681,232 37,888,372 40,650,308 

Public works 8,988,960 8,628,950 9,918,408 9,591,062 

Parks and recreation 4,942,649 5,245,169 5,246,931 5,306,786 

Community development 5,339,791 3,681,858 7,755,036 8,227,494 

Interest on long-term debt 3,319,999 3,127,986 3,063,181 3,361,098 

Total governmental activities expenses 


58,543,802 65,448,180 70,674,814 72,804,334 

Wastewater 11,851,614 11,657,734 12,804,910 13,018,024 

Total business-type activities expenses 11,851,614 11,657,734 12,804,910 13,018,024 

Total primary government expenses $ 70,395,416 $ 77,105,914 $ 83,479,724 $ 85,822,358 

Program Revenues 



General government $ 166,591 $ 192,094 $ 73,430 $ 1,236,844 

Public safety 4,576,305 5,344,381 6,351,522 7,145,060 

Public works 377,018 

330,632 

839,899 1,254,521 


581,974 

899,079 

549,021 

Community development 1,170,098 1,811,848 

98,969 

275,913 

Operating grants and contributions 11,916,039 8,513,565 8,080,317 6,957,456 

Capital grants and contributions 2,106,269 

462,000 2,708,921 11,926,534 

Total governmental activities revenues 



20,938,845 17,236,494 19,052,137 29,345,349 

Wastewater 12,188,570 11,647,955 11,703,427 11,444,031 

Capital grants and contributions 25,000 

- 

126,200 

- 

Total business-type activities revenues 12,213,570 11,647,955 11,829,627 11,444,031 

Total primary government revenues 

Net (expense)/revenue 

$ 33,152,415 $ 28,884,449 $ 30,881,764 $ 40,789,380 

Governmental activities $ (37,604,957) $ (48,211,686) $ (51,622,677) $ (43,458,985) 

Business-type activities 361,956 

(9,779) (975,283) (1,573,993) 

Total primary government net expense $ (37,243,001) $ (48,221,465) $ (52,597,960) $ (45,032,978) 

N-4

Fiscal Year 

2007 2008 2009 2010 2011 2012 

$ 6,003,403 $ 7,125,818 $ 7,033,654 $ 6,616,137 $ 6,496,555 $ 7,696,562 

41,376,479 40,313,529 39,346,691 37,384,609 37,649,169 38,633,076 

11,462,970 10,242,033 11,458,980 10,514,171 10,695,592 11,680,268 

5,416,545 5,424,920 5,222,743 5,011,660 4,811,375 4,697,831 

5,333,452 8,187,798 9,987,043 10,510,062 7,085,610 8,922,132 

3,546,884 3,914,799 3,713,294 4,145,067 4,426,180 3,033,459 

73,139,733 75,208,897 76,762,405 74,181,706 71,164,481 74,663,328 

12,916,675 15,843,902 14,595,817 15,455,843 15,413,470 16,398,495 

12,916,675 15,843,902 14,595,817 15,455,843 15,413,470 16,398,495 

$ 86,056,408 $ 91,052,799 $ 91,358,222 $ 89,637,549 $ 86,577,951 $ 91,061,823 

$ 975,695 $ 1,092,456 $ 1,169,914 $ 1,144,209 $ 1,124,120 $ 1,175,685 

6,661,314 5,060,425 5,516,765 5,141,582 5,039,668 4,758,621 

855,308 1,500,292 1,621,632 1,346,452 1,477,824 1,303,160 

533,257 

527,238 

511,609 

693,490 

657,618 

677,070 

43,335 1,112,047 1,052,738 1,292,549 1,172,847 1,128,417 

10,704,487 7,977,621 8,179,454 6,744,073 6,827,345 9,264,974 

13,538,092 13,590,499 14,385,324 12,503,710 11,290,298 9,396,184 

33,311,488 30,860,578 32,437,436 28,866,065 27,589,720 27,704,111 

12,273,490 12,226,547 12,072,058 11,940,997 11,456,017 13,382,226 

392,100 

- 

39,100 

15,900 

- 

- 

12,665,590 12,226,547 12,111,158 11,956,897 11,456,017 13,382,226 

$ 45,977,078 $ 43,087,125 $ 44,548,594 $ 40,822,962 $ 39,045,737 $ 41,086,337 

$ (39,828,245) $ (44,348,319) $ (44,324,969) $ (45,315,641) $ (43,574,761) $ (46,959,217) 

(251,085) (3,617,355) (2,484,659) (3,498,946) (3,957,453) (3,016,269) 

$ (40,079,330) $ (47,965,674) $ (46,809,628) $ (48,814,587) $ (47,532,214) $ (49,975,486) 

(Continued on next page) 

N-5





Fiscal Year 

2003 2004 2005 2006 

General Revenues and Other Changes in 

Net Assets 


Taxes 

Property taxes $ 11,233,085 $ 12,158,223 $ 23,911,292 $ 27,829,776 

Sales taxes 20,390,818 21,921,582 18,472,188 18,254,639 

Franchise taxes 2,988,437 3,500,702 3,657,639 3,739,375 

Transient lodging taxes 938,829 

997,661 1,015,956 1,091,977 

Business license taxes 740,000 

790,154 

792,554 

795,641 

Intergovernmental, unrestricted 5,577,398 4,427,599 2,274,612 

583,233 

Investment earnings 1,236,044 (138,375) 692,586 2,211,144 

Contribution from Civic Center Authority - 

929,517 

- 

- 

Other 676,038 

89,678 

18,264 

498,739 

Special item - net gain on sale of properties 

Extraordinary loss - net transfer of assets of 

- 

- 

- 

- 

former Redevelopment Agency - 

- 

- 

- 

Transfer - 

- 

441,075 (324,466) 

Total governmental activities 


43,780,649 44,676,741 51,276,166 54,680,058 

Investment earnings 1,298,216 

23,943 

753,434 

876,421 

Other - 

- 

1,355 

95,923 

Transfer - 

- (441,075) (175,447) 

Total business-type activities 1,298,216 

23,943 

313,714 

796,897 

Total primary government $ 45,078,865 $ 44,700,684 $ 51,589,880 $ 55,476,955 


Governmental activities $ 6,175,692 $ (3,534,945) $ (346,511) $ 11,221,073 

Business-type activities 1,660,172 

14,164 (661,569) (777,096) 

Total primary government $ 7,835,864 $ (3,520,781) $ (1,008,080) $ 10,443,977 

N-6

Fiscal Year 

2007 2008 2009 2010 2011 2012 

$ 31,116,242 $ 32,680,311 $ 32,527,556 $ 28,896,570 $ 28,873,349 $ 27,082,113 

17,761,028 17,127,144 15,602,550 19,148,882 22,278,251 22,466,903 

3,897,928 4,207,443 4,603,755 4,630,306 5,163,453 4,721,291 

1,119,762 1,127,839 

925,865 

824,676 

900,298 1,046,237 

770,951 

786,182 

784,047 

744,613 

751,196 

747,522 

619,730 

536,303 

542,808 

289,199 

502,955 

- 

3,233,882 1,830,475 

881,530 

374,277 

234,385 

299,103 

- 

- 

- 

- 

- 

- 

315,026 

18,650 

703,767 

811,138 

646,937 

745,817 

- 

- 

- 

- 2,167,485 

- 

- 

- 

58,834,549 

- 

- 

58,314,347 

- 

113,950 

56,685,828 

- 

19,259 

55,738,920 

- 

78,697 

61,597,006 

20,227,405 

5,682 

77,342,073 

1,436,923 1,572,301 

877,025 

372,139 

160,435 

82,552 

2,522 

144,234 

904,051 

8,022 

90,143 1,465,778 

- 

- (113,950) (19,259) (78,697) 

(5,682) 

1,439,445 1,716,535 1,667,126 

360,902 

171,881 1,542,648 

$ 60,273,994 $ 60,030,882 $ 58,352,954 $ 56,099,822 $ 61,768,887 $ 78,884,721 

$ 19,006,304 $ 13,966,028 $ 12,360,859 $ 10,423,279 $ 18,022,245 $ 30,382,856 

1,188,360 (1,900,820) (817,533) (3,138,044) (3,785,572) (1,473,621) 

$ 20,194,664 $ 12,065,208 $ 11,543,326 $ 7,285,235 $ 14,236,673 $ 28,909,235 

N-7

General fund 

2003 2004 2005 2006 

Reserved $ 3,186,012 $ 2,390,577 $ 1,445,119 $ 1,236,423 

Unreserved 17,385,177 

Nonspendable - 

Restricted - 

Committed - 

Assigned - 

Unassigned - 

19,189,795 

- 

- 

- 

19,558,962 

- 

- 

- 

18,227,337 

Total general fund $ 20,571,189 $ 21,580,372 $ 21,004,081 $ 19,463,760 

All other governmental funds 

Reserved $ 25,392,277 $ 29,776,231 $ 27,444,814 $ 41,801,680 

Unreserved 

Special revenue funds 6,849,601 

Capital projects funds 6,669,228 

Nonspendable - 

Restricted - 

Committed - 

Assigned - 

Unassigned - 


Fund Balance of Governmental Funds 


(modified accrual basis of accounting) 

- 

- 

7,091,541 

2,651,802 

- 

- 

- 

- 

- 

6,093,280 

6,253,755 

- 

- 

- 

- 

- 

- 

- 

- 

4,046,965 

15,720,367 

Total all other governmental funds $ 38,911,106 $ 39,519,574 $ 39,791,849 $ 61,569,012 

Total fund balance $ 59,482,295 $ 61,099,946 $ 60,795,930 $ 81,032,772 

Note: 

The City implemented GASB 54 for the fiscal year ended June 30, 2011. The categories of fund balance for 

governmental funds have been changed as described more fully in the notes to the basic financial 

statements. Prior year fund balances reflect the guidance in effect when those financial statements were 

prepared. 

N-8 

- 

- 

Fiscal Year 

- 

- 

- 

- 

- 

- 

-

2007 2008 2009 2010 2011 2012 

$ 1,058,476 $ 476,697 $ 27,822 $ 287,021 $ - $ 

- 

18,507,286 

- 

- 

- 

- 

- 

16,691,900 

- 

- 

- 

- 

- 

16,521,049 

- 

- 

- 

- 

- 

15,492,150 

- 

- 

- 

- 

- 

- 

11,610 

- 

10,058,304 

- 

10,009,181 

- 

- 

- 

10,003,509 

5,370,474 

3,401,384 

$ 19,565,762 $ 17,168,597 $ 16,548,871 $ 15,779,171 $ 20,079,095 $ 18,775,367 

$ 53,052,832 $ 50,578,716 $ 62,695,222 $ 84,028,150 $ - $ 

- 

4,631,285 

29,516,819 

- 

- 

- 

- 

- 

2,886,920 

38,108,095 

- 

- 

- 

- 

- 

4,071,055 

60,774,373 

- 

- 

- 

- 

- 

2,792,790 

24,086,294 

- 

- 

- 

- 

- 

- 

- 

- 

60,309,471 

- 

29,265,577 

- 

- 

- 

- 

32,917,930 

- 

25,454,019 

$ 87,200,936 $ 91,573,731 $ 127,540,650 $ 110,907,234 $ 89,575,048 $ 58,371,949 

$ 106,766,698 $ 108,742,328 $ 144,089,521 $ 126,686,405 $ 109,654,143 $ 77,147,316 

N-9 

Fiscal Year 

-

2003 2004 2005 2006 

Revenues 

Taxes $ 40,708,841 $ 43,702,717 $ 54,550,833 $ 64,763,484 

Intergovernmental 15,586,894 11,375,095 9,277,882 8,369,421 

Licenses and permits 766,799 994,993 1,279,818 1,381,874 

Charges for services 4,593,312 4,978,638 4,311,267 5,598,387 

Investment earnings 3,030,991 1,147,951 2,076,919 3,320,605 

Other 1,571,722 1,808,159 2,506,240 3,195,414 

Total revenues $ 66,258,559 64,007,553 74,002,959 86,629,185 

Expenditures 

General government $ 5,283,488 5,394,005 

Public safety 30,297,496 33,656,241 

Public works 3,433,514 3,861,550 

Parks and recreation 4,789,992 4,672,930 

Community development 5,282,046 3,532,624 


Debt service 

5,031,755 5,206,315 

Principal 1,790,072 2,980,969 

Interest and fiscal charges 3,301,808 3,179,622 

Pass-through payments 2,104,012 2,345,142 

Total expenditures $ 61,314,183 64,829,398 

Excess/deficiency of revenues over (under) 

expenditures $ 4,944,376 (821,845) 

Other financing sources (uses) 

Issuance of long-term debt $ 2,507,221 850,000 

Premium (Discount) on issuance of bonds (2,507,221) - 

Contribution from Civic Center Authority - 929,517 

Transfers in 27,200 7,069,092 

Transfers out 2,260,000 (7,063,815) 

Total other financing sources (uses) $ 2,287,200 1,784,794 

Extraordinary loss - 


Changes in Fund Balances of Governmental Funds 



6,569,726 

37,496,000 

5,735,251 

4,946,623 

7,760,406 

4,740,098 

1,595,788 

3,067,338 

2,836,820 

74,748,050 

(745,091) 

- 

- 

- 

6,037,322 

(5,596,247) 

441,075 

- 

5,379,635 

40,448,381 

6,184,025 

5,191,900 

8,087,533 

5,212,603 

30,083,343 

1,986,537 

2,314,388 

104,888,345 

(18,259,160) 

40,000,000 

(1,335,791) 

- 

9,420,667 

(9,745,133) 

38,339,743 

Net change in fund balances $ 7,231,576 $ 962,949 $ (304,016) $ 20,080,583 

Debt service as percentage of noncapital 

expenditures 12.8% 14.3% 10.7% 34.5% 

N-10 

Fiscal Year 

-

2007 2008 2009 2010 2011 2012 

$ 68,361,796 $ 67,870,489 $ 65,732,725 $ 68,651,590 $ 72,117,599 $ 65,375,715 

10,783,152 9,933,670 9,248,805 9,101,752 7,187,549 8,477,915 

1,202,371 816,696 948,842 1,170,501 873,243 

927,820 

5,891,070 6,025,170 6,261,265 6,045,741 5,821,898 6,248,868 

5,980,521 4,034,880 3,046,843 1,086,786 818,018 

387,216 

3,359,342 4,854,042 8,052,494 2,660,351 5,286,670 5,047,901 

95,578,252 93,534,947 93,290,974 88,716,721 92,104,977 86,465,435 

6,493,789 

41,101,006 

5,935,035 

5,037,440 

8,267,328 

14,455,898 

967,269 

3,206,498 

- 

85,464,263 

10,113,989 

15,750,000 

(135,550) 

- 

29,281,591 

(29,276,104) 

15,619,937 

- 

7,120,918 

42,187,380 

5,961,454 

5,318,846 

11,706,510 

13,213,187 

2,194,227 

3,855,980 

- 

91,558,502 

1,976,445 

- 

- 

- 

15,109,639 

(15,109,639) 

- 

- 

6,830,628 

39,105,822 

6,085,158 

5,039,113 

8,993,226 

12,903,731 

1,397,167 

3,667,869 

- 

84,022,714 

9,268,260 

25,195,000 

769,983 

- 

11,182,389 

(11,068,439) 

26,078,933 

Fiscal Year 

- 

6,578,500 

37,934,714 

6,201,848 

4,810,458 

14,380,697 

29,010,180 

2,873,736 

4,348,963 

- 

106,139,096 

(17,422,375) 

- 

- 

- 

28,484,035 

(28,464,776) 

19,259 

- 

6,554,545 

38,078,503 

5,940,300 

4,608,809 

9,685,291 

37,803,738 

1,312,000 

4,479,711 

- 

108,462,897 

(16,357,920) 

- 

- 

- 

15,836,395 

(16,510,737) 

(674,342) 

- 

7,446,595 

38,458,168 

5,553,901 

4,426,742 

5,906,316 

13,997,614 

1,362,000 

2,742,813 

- 

79,894,149 

6,571,286 

- 

- 

- 

30,436,534 

(32,542,205) 

(2,105,671) 

(36,972,442) 

$ 25,733,926 $ 1,976,445 $ 35,347,193 $ (17,403,116) $ (17,032,262) $ (32,506,827) 

5.9% 7.7% 7.1% 9.4% 8.2% 6.2% 

N-11

2003 2004 2005 2006 

Property $ 13,039,560 $ 14,102,943 $ 25,601,244 $ 29,757,108 

Sales and use 22,282,870 

Franchise 2,988,437 

Occupancy 938,829 

Property transfer 297,538 

Other 1,161,607 


Tax Revenues by Source, Governmental Funds 



23,497,603 

3,500,702 

997,661 

400,423 

1,203,385 

Fiscal Year 

22,481,821 

3,657,639 

1,015,957 

608,903 

1,185,269 

26,098,943 

3,739,375 

1,091,977 

387,057 

3,689,024 

$ 40,708,841 $ 43,702,717 $ 54,550,833 $ 64,763,484 

Notes: 

a The El Cajon Redevelopment Agency was dissolved effective 02/01/2012 and its non-housing assets and 

obligations were transferred to the Successor Agency. See the Notes to the Financial Statements for 

further information. 

N-12

2007 2008 2009 2010 2011 2012 

$ 33,209,047 $ 35,451,016 $ 35,528,950 $ 32,056,420 $ 31,858,255 $ 26,866,252 

26,177,608 

3,897,928 

1,119,762 

405,000 

3,552,451 

25,704,453 

4,207,443 

1,127,839 

211,639 

1,168,100 

23,302,544 

4,603,755 

925,865 

206,897 

1,164,714 

Fiscal Year 

25,968,174 

4,630,306 

824,676 

183,345 

4,988,669 

29,928,327 

5,163,453 

900,298 

193,141 

4,074,125 

30,141,782 

4,721,291 

1,046,237 

215,861 

2,384,292 

$ 68,361,796 $ 67,870,490 $ 65,732,725 $ 68,651,590 $ 72,117,599 $ 65,375,715 

N-13 

a

2003 2004 2005 2006 

Residential $ 3,032,262 $ 3,289,983 $ 3,683,527 $ 4,210,849 

Commercial 882,371 

Industrial 434,567 

Dry Farm 136 

Institutional 25,327 

Recreational 9,339 

Vacant Land 45,141 

SBE nonunitary 394 

Unsecured 308,387 

Unknown 9,364 

909,864 

439,487 

138 

16,965 

9,526 

53,709 

4,269 

321,715 

24,144 

961,055 

456,728 

140 

15,824 

9,716 

64,648 

2,154 

350,913 

- 

1,032,525 

476,495 

144 

20,435 

9,880 

76,711 

1,443 

457,638 

Total taxable assessed value (all areas) $ 4,747,288 $ 5,069,800 $ 5,544,705 $ 6,286,120 

Total taxable assessed value 

(redevelopment areas only) $ 1,353,669 $ 1,425,831 $ 1,561,256 $ 1,703,841 

Total direct tax rate 1.05835 1.08287 1.10533 1.10310 

Net taxable assessed values n/a n/a n/a $ 6,190,246 

` 

Notes: 

Exempt values not included in Total taxable assessed value. 

Net taxable assessed values are total taxable net of Homeowners exemption. 


Assessed Valuation and Net Taxable Assessed Value 


(in thousands of dollars) 

Sources: HdL Coren & Cone, San Diego County Assessor 20111/12 Combined Tax Rolls; 

San Diego Auditor/Controller website 

Fiscal Year 

In 1978 the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1%, based 

upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an 

"inflation factor (limited to 2%). With few exceptions, the property will be reassessed as a result of new construction activity or at 

the purchase price at the time it is sold to a new owner. At that point, property is reassessed based upon the added value of 

the construction (market value) or economic value of the property sold. The assessed valuation data shown above represents 

the only data currently available with respect to the actual market value of the taxable property described above. 

N-14 

-

2007 2008 2009 2010 2011 2012 

$ 4,809,681 $ 5,181,940 $ 5,146,788 $ 4,681,464 $ 4,589,686 $ 4,625,723 

1,156,882 

542,027 

147 

19,184 

8,141 

95,475 

898 

439,552 

- 

1,250,041 

617,180 

- 

96,520 

10,621 

93,673 

564 

486,538 

- 

1,306,707 

587,244 

- 

100,185 

10,833 

93,801 

1,049 

486,778 

- 

1,332,879 

605,729 

- 

102,708 

11,211 

88,457 

1,049 

531,835 

- 

1,315,121 

603,660 

- 

105,071 

8,683 

80,688 

1,049 

506,113 

- 

1,320,497 

601,910 

- 

106,421 

8,716 

73,147 

1,049 

508,860 

$ 7,071,987 $ 7,737,077 $ 7,733,385 $ 7,355,332 $ 7,210,071 $ 7,246,323 

$ 1,876,127 $ 2,042,925 $ 2,118,503 $ 2,051,141 $ 2,010,453 $ 1,471,332 

1.11575 1.12325 1.16529 1.20916 1.21704 1.23526 

$ 6,986,162 $ 7,614,485 $ 7,646,077 $ 7,269,526 $ 7,051,592 $ 7,087,712 

N-15 

Fiscal Year 

-

2003 2004 2005 2006 

General County Levy * 1.00000 1.00000 1.00000 1.00000 

Cajon Valley School Bond 0.02042 0.02867 0.02632 0.03126 

Grossmont Healthcare District Prop G 6-06-06 0.00000 0.00000 0.00000 0.00000 

Grossmont Union High Bond 0.00000 0.00000 0.02665 0.02318 

Grossmont-Cuyamaca Community College 0.00000 0.02307 0.02006 0.02004 

La Mesa Spring Valley Elementary 0.02473 0.02353 0.02501 0.02205 

Metropolitan Water District 0.00670 0.00610 0.00580 0.00520 

Padre Dam Muni. Water Imp. Dist. C-Debt Service 0.00575 0.00083 0.00149 0.00137 

San Diego Water Authority 0.00075 0.00067 0.00000 0.00000 

Santee Elementary Bond 0.00000 0.00000 0.00000 0.00000 

1.05835 1.08287 1.10533 1.10310 

*Analysis of the General County Levy $1.00 


Property Tax Rates per $100 of Assessed Value 

All Overlapping Governments 

Representative Tax Area 003-001 


City of El Cajon 0.11170 

Cajon Valley Union Elementary 0.2249 

Cajon Valley Union County School Building Aid 0.00002 

Children's Institutions Tuition 0.00146 

Chula Vista Project 0.00018 

County General 0.1321 

County Library 0.0251 

County School Service 0.00686 

County School Service Capital Outlay 0.00173 

CWA Helix Water District 0.00345 

Educational Revenue Augmentation Fund 0.1293 

Grossmont-Cuyamaca Community College 0.0942 

Grossmont Healthcare District 0.01625 

Grossmont Union High School District 0.2484 

Regional Occupational Centers 0.00438 

Total 1.0000 

Fiscal Year 

Source: HdL Coren & Cone, San Diego County Assessor 2011/12 Annual Tax Increment Tables 

Note : The incorporated area of El Cajon is served by three separate elementary school districts: Cajon 

Valley Union School Distrct, La Mesa/Spring Valley School District, and Santee School District. 

N-16

Fiscal Year 

2007 2008 2009 2010 2011 2012 

1.00000 1.00000 1.00000 1.00000 1.00000 1.00000 

0.03428 0.03141 0.04901 0.05224 0.05250 0.06084 

0.01315 0.01315 0.01315 0.01315 0.01315 0.02005 

0.02121 0.02177 0.02795 0.05867 0.05943 0.06121 

0.02067 0.00770 0.02257 0.02798 0.02929 0.03082 

0.02053 0.01959 0.02023 0.02366 0.02493 0.02556 

0.00470 0.00450 0.00430 0.00430 0.00370 0.00370 

0.00121 0.00108 0.00000 0.00000 0.00000 0.00000 

0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 

0.00000 0.02405 0.02808 0.02916 0.03404 0.03308 

1.11575 1.12325 1.16529 1.20916 1.21704 1.23526 

N-17

2003 2004 2005 2006 

Assessed % of Assessed % of Assessed % of Assessed % of 

Value Total* Value Total* Value Total* Value Total* 

Parkway Plaza Limited Partnership $ 173,977 3.66% $ 177,258 3.50% $ 183,869 3.31% $ 187,082 2.93% 

Conrad Prebys Trust 27,199 0.57% 27,742 0.55% 41,838 0.75% 42,669 0.67% 

GKN Aerospace ChemTronics Inc. 50,482 1.06% 41,123 0.81% 52,155 0.94% 50,854 0.80% 

Kaiser Foundation Health Plan 18,287 0.39% 25,392 0.50% - 

41,349 0.65% 

El Cajon Energy Center LLC - 

- 

- 

- 

San Diego Forest Park - 

- 

- 

- 

Calpeak Power El Cajon LLC - 

- 

28,210 0.51% 28,323 0.44% 

Sears Roebuck & Company - 

- 

- 

- 

Pacific Gillespie Partners II LLC - 

- 

31,077 0.56% 31,919 0.50% 

Cox Communications 22,105 0.47% 23,683 0.47% - 

- 

Cumberland Club Apartments LP - 

- 

- 

36,778 0.58% 

Home Depot United States Inc - 

- 

- 

- 

Signs and Pinnick, Inc. - 

- 

17,481 0.32% 25,724 0.40% 

JMS Acquisition LLC - 

- 

- 

- 

Shadow Mountain Community Church - 

- 

- 

- 

WEB Service Company, Inc. - 

- 

- 

- 

Toro Company - 

- 

13,804 0.25% - 

Carlos Cortez - 

- 

- 

34,510 0.54% 

Trinidad Marquez - 

- 

- 

29,974 0.47% 

American Stores Properties Inc. - 

- 

14,916 0.27% - 

Dayton Hudson Corporation - 

- 

12,638 0.23% - 

CC Sunterra LLC - 

- 

11,824 0.21% - 

Jacobs Irwin Mark Trustee - 

34,212 0.67% - 

- 

National Aircraft Leasing - 

32,257 0.64% - 

- 

Sachs John M. Inc. - 

26,556 0.52% - 

- 

Senior Flexonics Inc. 17,718 0.37% 18,072 0.36% - 

- 

Senior Aerospace Ketema Inc. 18,071 0.38% 17,663 0.35% - 

- 

Scripps Health 16,669 0.35% - 

- 

- 

Kaiser Foundation Hospitals 13,840 0.29% - 

- 

- 

Buck Knives Inc. 13,509 0.28% - 

- 

- 

* Total - Assessed Valuation of All Taxable Property in the City 


Principal Property Taxpayers 


(in thousands of dollars) 

Fiscal Year 

Source: HdL Coren & Cone, San Diego County Assessor 2011/12 Combined Tax Rolls and the SBE Non Unitary Tax Roll 

N-18

Fiscal Year 

2007 2008 

2009 2010 

2011 

2012 

Assessed % of Assessed % of Assessed % of Assessed % of Assessed % of Assessed % of 

Value Total* Value Total* Value Total* Value Total* Value Total* Value Total* 

$ 193,089 2.69% $ 197,811 2.56% $ 202,192 2.60% $ 206,236 2.79% $ 204,141 2.82% $ 219,478 3.02% 

48,300 0.67% 49,250 0.64% 44,093 0.57% 63,782 0.86% 71,808 0.99% 86,157 1.18% 

50,735 0.71% 57,502 0.71% 57,847 0.74% 56,145 0.76% 53,571 0.74% 51,899 0.71% 

40,962 0.57% 41,006 0.53% 41,751 0.54% 42,612 0.58% 42,202 0.58% 43,485 0.60% 

- 

- 

- 

- 

- 

36,861 0.51% 

- 

- 

- 

- 

- 

32,048 0.44% 

22,600 0.31% 28,554 0.37% 28,673 0.37% 28,795 0.39% 28,780 0.40% 28,827 0.40% 

25,072 0.35% 25,021 0.32% 25,308 0.33% 25,914 0.35% 26,340 0.36% 26,507 0.36% 

32,848 0.46% 24,736 0.32% 27,855 0.36% 28,412 0.38% 25,882 0.36% 25,490 0.35% 

- 

- 

33,725 0.43% 36,613 0.49% 30,759 0.42% 22,925 0.32% 

- 

38,238 0.49% 38,993 0.50% 39,764 0.54% 39,664 0.55% - 

- 

- 

- 

36,689 0.50% 23,947 0.33% - 

29,109 0.41% - 

26,884 0.35% - 

- 

- 

42,242 0.59% 43,115 0.56% - 

- 

- 

- 

- 

30,476 0.39% - 

- 

- 

- 

52,329 0.73% - 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

N-19

2003 2004 2005 2006 

Taxes levied $ 4,201,151 $ 4,485,626 $ 4,890,333 $ 5,414,300 

Collected within the fiscal year of levy 4,143,787 

Delinquent collections 54,980 

4,430,397 

55,191 

4,814,407 

52,848 

5,306,631 

68,196 

Total collections $ 4,198,767 $ 4,485,588 $ 4,867,255 $ 5,374,827 

Percentage of taxes collected within 

fiscal year of levy 98.6% 98.8% 98.4% 98.0% 

Source: San Diego County Auditor and Controller 


Property Tax Levies and Collections 


N-20 

Fiscal Year

2007 2008 2009 2010 2011 2012 

$ 5,949,579 $ 6,381,328 $ 6,443,062 $ 6,046,006 $ 5,934,509 $ 5,728,872 

5,780,276 

85,625 

6,133,651 

129,327 

6,207,282 

207,027 

Fiscal Year 

5,857,518 

206,041 

5,817,912 

169,164 

5,639,401 

93,608 

$ 5,865,901 $ 6,262,978 $ 6,414,309 $ 6,063,559 $ 5,987,076 $ 5,733,009 

97.2% 96.1% 96.3% 96.9% 98.0% 98.4% 

N-21


2003 2004 2005 2006 

General Bonded Debt 

Sales tax supported revenue bonds $ - $ - $ - $ 

- 

Tax allocation refunding bonds 47,450,000 46,465,000 45,440,000 56,000,000 

Total Bonded Debt 47,450,000 46,465,000 45,440,000 56,000,000 

Percentage of taxable assessed values 

(redevelopment areas only) 0 

Per capita b 

489 

Other Governmental Activities Debt 

Capital leases 2,817,406 

Notes payable 3,365,000 

Total Other Governmental Activities Debt 6,182,406 

Business-type Activities 

Other Business-type Activities Debt 

Obligation due to SD Metro Wastewater 7,076,250 

Total Primary Government a 

0 

477 

999,437 

4,037,000 

5,036,437 

7,076,250 

0 

467 

606,649 

3,859,000 

4,465,649 

11,038,654 

0 

579 

198,398 

3,624,000 

3,822,398 

11,038,654 

$ 60,708,656 $ 58,577,687 $ 60,944,303 $ 70,861,052 

Percentage of personal income 1.79% 1.67% 1.79% 2.04% 

Per capita b 


Ratios of Outstanding Debt by Type 


Fiscal Year 

$626 $602 $626 $733 

Notes: 

a 

Includes general bonded debt, other governmental activities debt, and business-type activities debt. 

b See Demographic and Economic Statistics on page N-29 for personal income and population data. 

These ratios are calculated using personal income and population for the prior calendar year. 

c 

The El Cajon Redevelopment Agency was dissolved effective 02/01/2012 and its non-housing assets and 

obligations were transferred to the Successor Agency. 

Details regarding the City's outstanding debt can be found in the Notes to the Financial 

N-22

2007 2008 2009 2010 2011 2012 

$ - $ - $ 25,195,000 $ 25,195,000 $ 25,195,000 $ 25,195,000 

71,075,000 69,950,000 68,780,000 67,575,000 66,320,000 

- 

71,075,000 

0 

733 

141,130 

3,389,000 

3,530,130 

11,038,654 

69,950,000 

0 

716 

86,903 

2,374,000 

2,460,903 

11,038,654 

93,975,000 

0 

955 

29,736 

2,204,000 

2,233,736 

11,038,654 

Fiscal Year 

92,770,000 

0 

933 

- 

565,000 

565,000 

11,038,654 

91,515,000 

0 

920 

- 

508,000 

508,000 

11,038,654 

25,195,000 

n/a c 

251 

- 

451,000 

451,000 

9,858,817 

$ 85,643,784 $ 83,449,557 $ 107,247,390 $ 104,373,654 $ 103,061,654 $ 35,504,817 

2.39% 2.37% 3.24% 3.12% 3.11% n/a 

$883 $854 $1,090 $1,049 $1,036 $353 

N-23 

c

Citywide Bonded Debt 

2003 2004 2005 2006 

Sales Tax supported revenue bonds $ - $ - $ - $ 

- 

Tax allocation refunding bonds 47,450,000 46,465,000 45,440,000 56,000,000 

Total bonded debt outstanding $ 47,450,000 $ 46,465,000 $ 45,440,000 $ 56,000,000 

State legal debt limit a 

$ 712,093,200 $ 760,470,000 $ 831,705,750 $ 942,918,000 

Legal debt margin within limit $ 664,643,200 $ 714,005,000 $ 786,265,750 $ 886,918,000 

Legal debt margin as a percentage of the 

debt limit 93.34% 93.89% 94.54% 94.06% 

Percentage of Assessed Valuation of property b 

Per Capita c 

Redevelopment Agency Bonded Debt d 

1.00% 0.92% 0.82% 0.89% 

$489 $477 $467 $579 

Tax allocation refunding bonds $ 47,450,000 $ 46,465,000 $ 45,440,000 $ 56,000,000 

Redevelopment Agency debt limit d 

$ 161,850,220 $ 167,136,564 $ 171,365,639 $ 178,766,520 

Legal debt margin within limit $ 114,400,220 $ 120,671,564 $ 125,925,639 $ 122,766,520 

Legal debt margin as a percentage of the 

debt limit 70.68% 72.20% 73.48% 68.67% 

Percentage of Assessed Valuation of property 

located within the Redevelopment Area b 

Per Capita c 

3.51% 3.26% 2.91% 3.29% 

$489 $477 $467 $579 

Notes: 

a 

State law limits indebtedness for California cities to 15% of the assessed value of all real and personal property of the City. 

b See Assessed Value and Net Taxable Assessed Value on page N-14 for property value data. 

c Population data can be found in Demographic and Economic Statistics on page N-29. 

d The El Cajon Redevelopment Agency was dissolved effective 02/01/2012 and its non-housing assets and obligations were 

transferred to the Successor Agency. 


Ratios of Bonded Debt Outstanding and Legal Debt Margin 


Fiscal Year 

e Under the Redevelopment Plan adopted July 14, 1987, the Agency's "amount of bonded indebtedness, to be repaid in whole or 

in part from such allocation of taxes, which can be outstanding at one time shall not exceed $100 million adjusted annually 

in accordance with the Consumer Price Index (CPI), or an acceptable replacement index in the event the CPA ceases to be 

published, without an amendment of this Plan." 

Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. 

N-24

Fiscal Year 

2007 2008 2009 2010 2011 2012 

$ - $ - $ 25,195,000 $ 25,195,000 $ 25,195,000 $ 25,195,000 

71,075,000 69,950,000 68,780,000 67,575,000 

66,320,000 

- 

$ 71,075,000 $ 69,950,000 $ 93,975,000 $ 92,770,000 $ 91,515,000 $ 25,195,000 

$ 1,060,798,050 $ 1,160,561,550 $ 1,160,007,750 $ 1,103,299,800 $ 1,081,510,650 $ 1,086,948,450 

$ 989,723,050 $ 1,090,611,550 $ 1,066,032,750 $ 1,010,529,800 $ 989,995,650 $ 1,061,753,450 

93.30% 93.97% 91.90% 91.59% 91.54% 97.68% 

1.01% 0.90% 1.22% 1.26% 1.27% 0.35% 

$733 $716 $955 $933 $915 $251 

$ 71,075,000 $ 69,950,000 $ 68,780,000 $ 67,575,000 $ 66,320,000 $ 

- 

$ 183,570,044 $ 192,788,546 $ 190,037,885 $ 191,801,762 $ 191,801,762 $ 

- 

$ 112,495,044 $ 122,838,546 $ 121,257,885 $ 124,226,762 $ 125,481,762 $ 

- 

61.28% 63.72% 63.81% 64.77% 65.42% - 

3.79% 3.42% 3.25% 3.29% 3.30% - 

$733 $716 $699 $679 $667 - 

N-25 

d

TAX ALLOCATION BONDS 

2003 2004 2005 2006 

Property Tax Incremental Revenues $ 7,469,478 $ 8,318,365 $ 9,067,206 $ 10,499,258 

Principal $ 945,000 $ 985,000 $ 1,025,000 $ 29,440,000 

Interest 2,982,181 

Pass-through payments 2,076,242 

2,888,355 

2,324,594 

2,825,520 

2,836,820 

3,088,044 

2,314,388 

Total debt service $ 6,003,423 $ 6,197,949 $ 6,687,340 $ 34,842,432 

Coverage 1.24 

REVENUE BONDS 

1.34 

1.36 

2003 2004 2005 2006 

Sales Tax Revenues $ - $ - $ - $ 

- 

Principal $ - $ - $ - $ 

- 

Interest - 

Total debt service $ - $ - $ - $ 

- 

Coverage 0.00 0.00 0.00 0.00 

Notes: 

a 

The 1997 Tax Allocation Bonds were refunded in fiscal year 2006. 


Pledged-Revenue Coverage 


b The El Cajon Redevelopment Agency was dissolved effective 02/01/2012 and its non-housing assets and 

obligations were transferred to the Successor Agency. The numbers reported here are for the period 

July 1, 2011, through January 31, 2012. 

Details regarding the City's outstanding debt can be found in the Notes to the Financial Statements. 

N-26 

Fiscal Year 

Fiscal Year 

- 

- 

0.30 

- 

a

2007 2008 2009 2010 2011 2012 

$ 13,884,949 $ 15,089,353 $ 12,495,350 $ 11,897,087 $ 11,514,535 $ 6,313,512 

$ 675,000 $ 1,125,000 $ 1,170,000 $ 1,205,000 $ 1,255,000 $ 1,305,000 

2,994,828 

2,497,808 

3,613,372 

2,982,343 

3,541,815 

3,208,290 

3,492,829 

3,343,196 

3,442,999 

3,204,850 

1,708,769 

1,555,164 

$ 6,167,636 $ 7,720,715 $ 7,920,105 $ 8,041,025 $ 7,902,849 $ 4,568,933 

2.25 

1.95 

1.58 

2007 2008 2009 2010 2011 2012 

$ - $ - $ - $ 6,819,290 $ 7,650,075 $ 7,674,879 

$ - $ - $ - $ - $ - $ 

- 

- 

- 

Fiscal Year 

Fiscal Year 

- 

1.48 

591,034 

1.46 

1,008,400 

1.38 

1,008,400 

$ - $ - $ - $ 591,034 $ 1,008,400 $ 1,008,400 

0.00 0.00 0.00 11.54 7.59 7.61 

N-27 

b 

b 

b 

b

2011-12 Assessed Valuation: $6,983,194,826 

Redevelopment Incremental Valuation: 1,477,388,103 

Adjusted Assessed Valuation: $5,505,806,723 

Total Debt City’s Share of 

OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/2012 % Applicable (1) Debt 6/30/12 

Metropolitan Water District $196,545,000 0.304 % $597,497 

Grossmont-Cuyamaca Community College District 188,314,045 15.952 30,037,973 

Grossmont Union High School District 412,395,095 16.444 67,814,249 

Cajon Valley Union School District 110,243,175 39.467 43,509,674 

La Mesa-Spring Valley School District 37,794,849 9.218 3,483,929 

Santee School District 43,735,247 2.269 992,353 

Grossmont Healthcare District 221,902,076 14.983 33,247,588 

TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $179,683,263 

Ratios to 2011-12 Assessed Valuation: 

Total Overlapping Tax and Assessment Debt…………………………..2.57% 

DIRECT AND OVERLAPPING GENERAL FUND DEBT: 

San Diego County General Fund Obligations $395,115,000 1.597 % $6,309,987 

San Diego County Pension Obligations 787,112,618 1.597 12,570,189 

San Diego County Superintendent of Schools Certificates of Participation 18,750,000 1.597 299,438 

Grossmont-Cuyamaca Community College District General Fund Obligations 1,540,000 15.951 245,645 

Grossmont Union High School District Certificates of Participation 1,080,000 16.444 177,595 

Cajon Valley Union School District Certificates of Participation 11,235,000 39.467 4,434,117 

Santee School District Certificates of Participation 30,674,849 2.269 696,012 

City of El Cajon Sales Tax Supported Obligations 25,195,000 100.000 25,195,000 

San Miguel Consolidated Fire Protection District Certificates of Participation 5,855,000 0.001 59 

TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT $49,928,042 

Less: City of El Cajon Sales Tax Supported Obligations 25,195,000 

TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $24,733,042 

TOTAL GROSS DIRECT DEBT $25,195,000 

TOTAL NET DIRECT DEBT $0 

TOTAL OVERLAPPING DEBT $204,416,305 

GROSS COMBINED TOTAL DEBT $229,611,305 (2) 

NET COMBINED TOTAL DEBT $204,416,305 

(1) Percentage of overlapping agency’s assessed valuation located within boundaries of the authority. 

(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded 

capital lease obligations 

Ratios to Adjusted Assessed Valuation : 

Gross Combined Direct Debt ($25,195,000) 0.46% 

Net Combined Direct Debt ($0) 0.00% 

Gross Combined Total Debt 4.17% 

Net Combined Total Debt 3.71% 

STATE SCHOOL BUILDING AID REPAYABLE AS OF 6/30/12 : $0 

Source: California Municipal Statistics, Inc. 


Direct and Overlapping Governmental Activities Debt 

As of June 30, 2012 

N-28

Year 

Total 

Population Median Age 


Demographic and Economic Statistics 

Last Ten Calendar Years 

Avg. 

Household 

Size 

Educational Attainment 

% High 

School 

Graduate 

% Bachelor's 

Degree or 

Higher 

Pct. Below 

Poverty 

Unemployment 

Rate 

Personal Income 

(000s) 

Per Capita 

Personal 

Income 

2002 96,432 32.6 2.74 n/a n/a n/a 7.1% $3,403,000 $35,300 

2003 96,939 32.9 2.76 n/a n/a n/a 7.2% $3,396,500 $35,000 

2004 97,354 33.2 2.78 n/a n/a n/a 6.6% $3,512,700 $36,100 

2005 97,364 33.5 2.78 80.5% 17.8% 14.4% 6.0% $3,412,500 $35,000 

2006 96,699 33.4 2.77 80.7% 14.6% 15.8% 5.5% $3,475,500 $35,900 

2007 97,027 33.4 2.79 81.4% 17.1% 20.6% 6.3% $3,585,800 $37,000 

2008 97,684 33.4 2.80 78.5% 14.9% 21.0% 8.2% $3,527,100 $36,100 

2009 98,363 33.3 2.83 75.2% 17.0% 22.4% 13.1% $3,314,900 $33,700 

2010 99,478 34.0 2.84 77.4% 14.2% 29.7% 14.2% $3,342,800 $33,600 

2011 99,981 34.3 2.84 78.3% 18.8% 23.5% 13.5% $3,309,400 $33,100 

2012 100,562 34.3 2.84 n/a n/a n/a n/a n/a n/a 

Sources: SANDAG, Current Estimates (Oct. 2012); California Department of Finance; California Employment Development Department; U.S. Census Bureau, 

Census 2000, Census 2010, and American Community Survey; U.S. Bureau of Economic Analysis 

Notes: Dollar values are inflation-adjusted to 2011 dollars. 

Year-to-year variation for the percent of population living below the poverty level is the result of both actual change and sampling error. 

N-29

Employer 


Principal Employers 

Current Year and Six Years Ago 

Number of 

Employees Rank 

Percentage of Total 

City Employment 

Cajon Valley Union School District 1,670 1 

1 3.11% 

Grossmont-Cuyamaca Community College District 738 1 

2 1.37% 

GKN Aerospace Chem-Tronics Inc 617 3 1.15% 

Grossmont Union High School District 573 2 

4 1.07% 

Wal-Mart 440 3 

5 0.82% 

City of El Cajon 443 6 0.82% 

Taylor-Listug Inc 388 7 0.72% 

Country Hills Health Care 350 8 0.65% 

Eldorado Care Center 350 9 0.65% 

University Mechanical and Engineering 349 10 0.65% 

Senior Operations Inc. - 

Windowmaster Products - 

Sayco Container Inc. - 

American Habilitation Services - 

True Temper Sports Inc. - 

Total 5,918 11.02% 

Total City Labor Force 53,700 

Fiscal Year 

2012 

Source for 2012 data: MuniServices, LLC, who advised results based on direct correspondence with city's local businesses. 

Total City Labor Force provided by EDD Labor Force Data. 

Notes for 2012 data: 

1 

Includes full-time classified and certificated employees within the city. Also includes District Office staff. 

2 

Includes 4 high schools in El Cajon only. 

3 

City of El Cajon employee data from 2011-2012 City Budget. 

N-30

Number of 

Employees Rank 

Percentage of Total 

City Employment 

- 

1,490 1 3.54% 

873 4 2.08% 

1,064 5 

- 

2 2.53% 

488 6 

5 1.16% 

320 

- 

10 0.76% 

- 

630 6 1.50% 

370 7 0.88% 

1,000 3 2.38% 

350 8 0.83% 

340 9 0.81% 

6,925 16.47% 

42,060 

2006 4 

Fiscal Year 

Source for 2006 data: Dun & Bradstreet, Selectory.com. 

Total City Labor Force from San Diego Association of Governments. 

Notes for 2006 data: 

4 

Pre-2006 data not readily available for the City of El Cajon. 

5 

Total district employees, not just within city limits. 

6 

Includes full time equivalent employees only. 

N-31

As of June 30 

Function/Program 2003 2004 2005 2006 

General Government 

City Manager 5.00 5.00 4.50 37.00 

City Clerk 5.75 5.75 4.75 4.75 

City Attorney 2.00 2.00 2.00 2.00 

Finance 16.00 15.50 15.00 14.50 

Human Resources 7.00 5.50 5.00 5.00 

a b 

Administrative Services 45.10 43.10 42.60 - 

Police 

Officers d 

Civilians d 


Full-time Equivalent City Government Employees 

By Function/Program 


159.00 142.00 146.00 146.00 

61.50 77.73 74.50 74.50 

Animal Control 9.00 9.00 9.00 9.00 

Fire 

Firefighters and Officers 71.00 71.00 71.00 72.00 

Civilians 2.00 3.00 2.00 2.00 

Public Works 

Engineering 22.60 22.75 22.75 22.90 

Wastewater 30.65 30.55 30.55 30.30 

Other 23.20 21.70 21.20 21.30 

Parks & Recreation 

Parks c 

31.00 31.00 31.00 38.50 

Recreation 21.00 21.00 20.50 20.50 

Community Development 22.50 22.50 21.40 21.40 

Total 576.40 529.08 523.75 521.65 

Notes: 

a In 2004, Information Technologies, Business Services, Facilities Maintenance and Fleet Maintenance 

became part of Administrative Services. FY 2003 restated to reflect this reorganization. 

b In 2006, Administrative Services became part of the City Manager's department, except Fleet 

Maintenance, which moved from Administrative Services to Parks. 

c In 2007, Parks and Facilities Maintenance became part of Public Works 

d Data restated for 2004 - 2009. 

N-32

As of June 30 

2007 2008 2009 2010 2011 2012 

11.30 10.45 11.55 11.55 6.55 4.50 

4.00 3.75 4.00 3.00 3.00 3.00 

3.00 1.50 3.00 2.00 1.50 2.00 

14.50 11.40 12.00 12.00 12.00 9.45 

4.00 3.80 4.00 3.50 2.80 4.40 

- - - - - - 

139.00 131.00 130.50 124.00 120.00 120.00 

72.70 70.20 70.70 70.70 68.70 68.70 

8.00 8.00 6.00 6.00 5.00 5.00 

70.00 67.00 70.00 70.00 68.00 73.00 

2.20 2.00 2.20 2.20 2.20 2.20 

17.55 10.60 17.60 17.60 11.90 15.25 

28.45 30.40 28.90 28.80 29.10 34.35 

77.80 73.30 76.30 71.90 74.70 66.80 

- - - - - - 

16.00 20.00 15.00 14.00 15.00 14.45 

23.00 26.35 26.25 26.45 26.05 20.25 

491.50 469.75 478.00 463.70 446.50 443.35 

N-33

Fiscal Year 

Function/Program 2003 2004 2005 2006 


Building permits issued 1,706 2,471 2,591 3,110 

Building inspections conducted a 

7,939 8,893 11,713 11,816 

Police 

Physical arrests e 

5,466 b 

6,151 5,782 6,391 

Traffic violations 14,140 b 

15,419 13,212 12,455 

Parking violations 

Animal Control 

1,488 2,119 1,767 2,273 

a 

Licenses issued 2,469 2,460 2,468 2,387 

Adoptions d 

989 1,030 1,077 1,093 

Fire a 


Operating Indicators by Function/Program 


Emergency responses 9,675 10,500 11,250 10,582 

Fires extinguished 52 47 37 63 

Fires investigated 52 47 37 63 

Inspections 900 950 1,050 691 

Abatement compliance 51 46 51 46 

CERT Academy citizen attendance c 

60 110 

Public works 

Street resurfacing (miles) 2 5 6 2 

Recreation 

Rentals n/a 364 609 542 

Bookings n/a 1,786 4,244 3,664 

Attendance n/a 133,692 179,958 70,912 

Wastewater 

Average daily sewage transportation 

(thousands of gallons) 9,000 9,000 9,000 9,000 

Sources: Various city departments 

Notes : 

a 

2003 - 2007 data was compiled by calendar years; fiscal year amounts represented 

here are averages of the two calendar years each fiscal year crosses. 

b 

2003 data was only available for November 2002 through June 2003; 

fiscal year amounts are estimated. 

c 

CERT Academy started in 2005. 

N-34

Fiscal Year 

2007 2008 2009 2010 2011 2012 

1,762 1,364 1,188 1,101 1,245 1,238 

8,370 8,029 5,263 7,859 4,279 4,337 

5,780 5,119 5,300 5,321 4,605 4,513 

13,931 16,953 13,955 13,354 12,235 9,968 

2,956 3,098 2,550 3,282 3,248 4,049 

2,386 2,345 2,431 2,439 2,731 2,290 

1,201 1,150 1,146 1,191 1,234 1,106 

9,858 9,607 10,543 12,122 12,829 13,177 

154 120 126 469 253 752 f 

154 120 126 469 253 318 

534 403 4,108 2,657 3,058 3,684 

76 360 294 298 288 580 

72 29 39 38 42 59 

4 7 2 18 10 3 

600 648 615 467 385 346 

3,341 4,196 3,430 2,852 2,463 2,156 

146,124 124,757 136,540 149,990 91,572 195,677 

9,000 9,000 9,000 9,000 9,000 9,000 

d Data restated for years 2003 - 2006. 

e Data restated for years 2008 - 2009. 

f 

Now part of Heartland Fire and Rescue JPA, El Cajon Fire Department responds to fires 

in the La Mesa, Lemon Grove and San Miguel fire districts. 

N-35

Function/Program 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 


City Hall 1 1 1 1 1 1 1 1 1 1 

Police 

Headquarters 1 1 1 1 1 1 1 1 1 1 

Satellite Police Facilities 2 2 2 2 2 2 1 1 1 0 

Animal Shelter 1 1 1 1 1 1 1 1 1 1 

Patrol units 51 52 53 54 54 54 53 56 56 56 

Undercover units 31 31 31 31 31 31 29 30 30 30 

Tactical units 4 4 4 4 4 4 6 5 5 5 

Fire 

Stations 4 4 4 4 4 4 4 4 4 4 

Engines/Pumper trucks 8 8 8 8 8 8 7 7 7 7 

Ladder truck 1 1 1 1 1 1 1 1 1 1 

Battalion Chief units 2 2 2 2 2 2 2 2 2 2 

Ambulances 4 5 5 5 5 5 5 6 6 7 

Public works 

Streets (miles) 196 196 196 196 196 196 196 196 196 196 

Streetlights 2160 2160 2160 2173 2207 2219 2219 2204 2334 2331 

Traffic signals 105 108 109 112 112 112 112 112 112 112 

Parks and recreation 

Acreage 120 120 120 120 120 120 120 120 120 120 

Community centers 7 7 7 7 7 7 7 7 7 7 

Playing fields 5 5 5 5 5 5 5 5 5 5 

Playing courts 5 5 5 5 5 5 5 5 5 5 

Playgrounds 5 5 5 5 5 5 5 5 6 6 

Tennis courts 1 1 1 1 1 1 1 1 1 1 

Baseball/softball diamonds 2 2 2 2 2 2 2 2 2 2 

Soccer/football fields 2 2 2 2 2 2 2 2 2 2 

Outdoor basketball courts 3 3 3 3 3 3 3 3 3 3 

Gymnasiums 4 4 4 4 4 4 4 4 4 4 

Amphitheaters 3 3 3 3 3 3 3 3 3 3 

Swimming pool 1 1 1 1 1 1 1 1 1 1 

Skatepark 1 1 1 1 1 1 1 1 1 1 

Dog park 1 1 1 1 1 1 1 1 

Wastewater 

Sanitary sewers (miles) 195 195 195 195 195 195 195 195 195 195 

Storm sewers (miles) 72 72 72 72 72 72 72 72 72 72 

Sources: Various city departments 


Capital Asset Statistics by Function/Program 


Notes : 

a All divisions moved into the new Public Safety Center in August 2011. 

N-36 

Fiscal Year 

a


ACKNOWLEDGEMENTS 

Finance Department 

(in alphabetical order) 

Lori Bogan 

Victoria Danganan 

Merce Edwards 

Carol Locken, CPA 

Karla Lowe 

Jinan Michael 

Joyce Nevarez, CPA 

Nancy Palm 

Dede Porter 

Holly Reed-Falk, CPA 

Mara Romano 

John Sunkel 

Linda Umphress 

Cover Photographs 

Historic: Courtesy of the El Cajon Historical Society 

Current Day: Mary Ann Prall 

Cover Design 

Mary Ann Prall 

Printing & Binding 

Patti Jepsen

735 E. Carnegie Dr. Suite 100 

San Bernardino, CA 92408 

9098890871 T 

9098895361 F 

ramscpa. net 

PARTNERS 

Brenda L. Odie, CPA, MST 

Terry P. Shea, CPA 

Kirk A. Franks, CPA 

Matthew B. Wilson, CPA, MSA, CGMA 

Scott W. Manno, CPA 

Leena Shanbhag, CPA, MST 

Jay H. Zercher, CPA (Retired) 

Phillip H. Waller, CPA (Retired) 

MANAGERS / STAFF 

Nancy O'Rafferty, CPA, MBA 

Bradferd A. Welebir, CPA, MBA 

Jenny l.iu, CPA, MST 

Katie L. Millsom, CPA 

Papa l"latar Thiaw, CPA, MBA 

Maya S. lvanova, CPA, MBA 

Danielle E. Odgers, CPA 

William C Clayton, CPA 

Peter E. Murray, CPA 

Genivive Schwarzkopf, CPA 

Megan Hackney, CPA 

Seong-Hyea Lee, CPA, MBA 

Charles De Simoni, CPA 

MEMBERS 

American Institute of 

Certified Public Accountants 

PCPS The AICPA Alliance 

(or CPA Firms 

Governmental Audit 

Quality Center 

California Society of 


The Honorable City Council 

City of EI Cajon, California 

ROGERS, ANDERSON, MALODY & SCOTT, LLP 

CERTIFIED PUBLIC ACCOUNTANTS, SINCE 1948 

INDEPENDENT ACCOUNTANT'S REPORT ON AGREED-UPON 

PROCEDURES 

APPLIED TO APPROPRIATIONS LIMIT WORKSHEETS 

We have performed the procedures enumerated below to the accompanying 

Appropriations Limit worksheet of the City of EI Cajon, California, for the year 

ended June 30, 2012. These procedures, which were agreed to by the City of 

EI Cajon, California and the League of California Cities (as presented in the 

publication entitled Agreed-upon Procedures Applied to the Appropriations 

Limitation Prescribed by Article XIII-B of the California Constitution), were 

performed solely to assist the City in meeting the requirements of Section 1.5 

of Article XIII-B of the California Constitution. The City of EI Cajon's 

management is responsible for the Appropriations Limit worksheet. This 

agreed-upon procedures engagement was conducted in accordance with 

attestation standards established by the American Institute of Certified Public 

Accountants. The sufficiency of these procedures is solely the responsibility 

of those parties specified in this report. Consequently, we make no 

representation regarding the sufficiency of the procedures described below 

either for the purpose for which this report has been requested or for any 

other purpose. 

The procedures performed and our findings were as follows: 

1. We obtained the completed worksheets and compared the limit and 

annual adjustment factors included in those worksheets to the limit 

and annual adjustment factors that were adopted by resolution of the 

City Council. We also compared the population and inflation options 

included in the aforementioned documents to those that were selected 

by a recorded vote of the City Council. 

Finding: No exceptions were noted as a result of our procedures. 

2. For the accompanying Appropriations Limit worksheet, we added last 

year's limit to total adjustments and agreed the resulting amount to 

this year's limit. 

Finding: No exceptions were noted as a result of our procedures. 

STABILITY. ACCURACY. TRUST.

Per Capita Personal Income Change 

Population Change 

County Population Growth 

CPI Change Converted to a Ratio 

Population Change Converted to a Ratio 

Calculation of Growth Factor 

2010 - 2011 Limit 

2011 - 2012 Appropriations Limit 

(113,102,323 X 1.0324807) 


APPROPRIATIONS LIMIT COMPUTATION 

2011 - 2012 

$ 113,102,323 

$ 116,775,968 

2011-2012 

2.51% 

0.72% 

1.0251 

1.0072 

1.0324807

735 E. Carnegie Dr Suite 100 


909889 0871 T 

9098895361 F 

ramscpa.net 

PARTNERS 

Brenda L. Odie, CPA, MST 

Terry P Shea, CPA 

Kirk A. Franks, CPA 

Matthew B. Wilson, CPA, MSA, CGMA 

SCOtt W. Manno, CPA 

Leena Shanbhag, CPA, M5T 

Jay H. Zorchcr, CPA (Retired) 


MANAGERS I STAFF 

Nancy O'Raffel'ty, CPA, MBA 

Bradferd A. Welebir, CPA, MBA 

Jenny Liu, CPA. MST 

Katie L. Millsom, CPA 

Papa Matar Thiaw, CPA, MBA 



William C. Clayton, CPA 

Petet' E. Murray, CPA 



Seong-Hyea Lee, CPA, MBA 


MEMBERS 


Cenified Pubirc Accountants 

PCPS The AICPA Alliance 

for CPA Frrrns 




Certiiied Public Accountants 


City of EI Cajon 




We have audited the financial statements of the governmental activities, the 

business-type activities, each major fund, and the aggregate remaining fund 

information of the City of EI Cajon (the City) for the year ended June 30, 

2012. Professional standards require that we provide you with information 

about our responsibilities under generally accepted auditing standards (and, if 

applicable, Government Auditing Standards and OMS Circular A-133), as 

well as certain information related to the planned scope and timing of our 

audit. We have communicated such information in our letter to you dated 

April 30, 2012. Professional standards also require that we communicate to 

you the following information related to our audit. 

Qualitative Aspects ofAccounting Practices 

Management is responsible for the selection and use of appropriate 

accounting policies. The significant accounting policies used by the City are 

described in Note A to the financial statements. No new accounting policies 

were adopted and the application of existing policies was not changed during 

the June 30, 2012 fiscal year. We noted no transactions entered into by the 

governmental unit during the year for which there is a lack of authoritative 

guidance or consensus. All significant transactions have been recognized in 

the financial statements in the proper period. 

Accounting estimates are an integral part of the financial statements prepared 

by management and are based on management's knowledge and experience 

about past and current events and assumptions about future events. Certain 

accounting estimates are particularly sensitive because of their significance 

to the financial statements and because of the possibility that future events 

affecting them may differ significantly from those expected. The most 

sensitive estimates affecting the City's financial statements were: 

The estimate of the asset for the other post employment benefits is 

based on actuarial reports provided by independent actuaries. We 

evaluated the key factors and assumptions used to develop the 

estimate in determining that it is reasonable in relation to the 

financial statements taken as a whole 

STABILITY, ACCURACY. TRUST.


City of EI Cajon Page 2 

Management's estimate of the fair value of investments is based on information 

provided by financial institutions. We evaluated the key factors and assumptions 

used to develop the fair value of investments in determining that it is reasonable 

in relation to the financial statements taken as a whole. 

Depreciation expense is the allocation of capital asset costs over the estimated 

useful life of a particular asset. The actual life of any single asset may vary 

significantly based on a variety of unknown factors, such as defects in the quality 

of manufacturing or materials used in the asset. Assets may last longer or shorter 

than anticipated resulting in disproportionate allocation of expense to various 

accounting periods. We evaluated the useful lives employed by the City to 

determine if the lives utilized appeared reasonable based on the asset classes in 

service. 

Certain financial statement disclosures are particularly sensitive because of their significance to 

financial statement users. The most sensitive disclosure affecting the financial statements was: 

The disclosure of fair value of investments in the notes to the financial statements 

represents amounts susceptible to market fluctuations. 

The disclosure of accumulated depreciation in the notes to the financial 

statements is based on estimated useful lives which could differ from actual 

useful lives of each capitalized item. 

The disclosures of pension and other postemployment benefit obligations in the 

notes to the financial statements are based on actuarial assumptions. Actual 

future liabilities may vary from disclosed estimates. 

The disclosures in the financial statements are neutral, consistent and clear. 

Difficulties Encountered in Performing the Audit 

We encountered no significant difficulties in dealing with management in performing and 

completing our audit. 

Corrected and Uncorrected Misstatements 

Professional standards require us to accumulate all known and likely misstatements identified 

during the audit, other than those that are trivial, and communicate them to the appropriate level 

of management. There were no such misstatements.



Disagreements with Management 

Page 3 

For purposes of this letter, professional standards define a disagreement with management as a 

financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, 

that could be significant to the financial statements or the auditor's report. We are pleased to 

report that no such disagreements arose during the course of our audit. 

Management Representations 

We have requested certain representations from management that are included in the 

management representation letter dated December 14, 2012. 

Management Consultations with Other Independent Accountants 

In some cases, management may decide to consult with other accountants about auditing and 

accounting matters, similar to obtaining a "second opinion" on certain situations. If a 

consultation involves application of an accounting principle to the governmental unit's financial 

statements or a determination of the type of auditor's opinion that may be expressed on those 

statements, our professional standards require the consulting accountant to check with us to 

determine that the consultant has all the relevant facts. To our knowledge, there were no such 

consultations with other accountants. 

Other Audit Findings or Issues 

We generally discuss a variety of matters, including the application of accounting principles and 

auditing standards, with management each year prior to retention as the governmental unit's 

auditors. However, these discussions occurred in the normal course of our professional 

relationship and our responses were not a condition to our retention. 

On December 29,2011, the California Supreme Court upheld Assembly Bill X1 26 that provides 

for the dissolution of all redevelopment agencies in the State of California. Therefore, as of 

February 1, 2012, the Redevelopment Agency of the City of Chino, a component unit of the City, 

ceased to exist. All functions of the former redevelopment agency either passed to the City or 

to the Successor Agency to the Redevelopment Agency of the City of Chino. The gain (loss) of 

this dissolution is shown in the financial statements as an extraordinary item.



Other Information in Documents Containing Audited Financial Statements 

Page 4 

With respect to the supplementary information accompanying the financial statements, we made 

certain inquiries of management and evaluated the form, content, and methods of preparing the 

information to determine that the information complies with accounting principles generally 

accepted in the United States of America, the method of preparing it has not changed from the 

prior period, and the information is appropriate and complete in relation to our audit of the 

financial statements. We compared and reconciled the supplementary information to the 

underlying accounting records used to prepare the financial statements or to the financial 

statements themselves. 

This information is intended solely for the use of the City Council and management of the City 

and is not intended to be and should not be used by anyone other than these specified parties. 

/.!Jv..V tLI.tM.\ !J.tly t S-;D7T, L(jJ 

December 14,2012

73S E. Carnegie Dr. Suite 100 


909 889 0871 T 

909889S361 F 

rarnscpa. net 

PARTNERS 

Brenda L. Odie, CPA MST 

Terry P Shea, CPA 

Kirk A Franks, CPA 

Matthew B. Wilson, CPA MSA CGMA 

Scott W. Manno, CPA 

Leena Shanbhag, CPA MST 

Jay H. Zercher, CPA (Retired) 


MANAGERS I STAFF 

Nancy O'Rafferty, CPA MBA 

Bradferd A. Welebir, CPA MBA 

Jenny l.iu. CPA ['1ST 

Katie L Millsom, CPA 

Papa Matar Thiaw, CPA, MBA 



vvilliarn C. Clayton, CPA 

Peter E. MUITay, CPA 



Seong-Hyea Lee, CPA MBA 


MEMBERS 



PCPS The A/CPA Alliance 

for CPA Firrn: 










REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND 

ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF 

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 

GOVERNMENT AUDITING STANDARDS 

We have audited the financial statements of the governmental activities, the 

business-type activities, each major fund, and the aggregate remaining fund 

information of the City of EI Cajon (the City) as of and for the year ended 

June 30, 2012, which collectively comprise the City's basic financial 

statements and have issued our report thereon dated December 14, 2012. 

We conducted our audit in accordance with auditing standards generally 

accepted in the United States of America and the standards applicable to 

financial audits contained in Government Auditing Standards, issued by the 

Comptroller General of the United States. 

Internal Control Over Financial Reporting 

Management of the City is responsible for establishing and maintaining 

effective internal control over financial reporting. In planning and performing 

our audit, we considered the City's internal control over financial reporting as 

a basis for designing our auditing procedures for the purpose of expressing 

our opinions on the financial statements, but not for the purpose of 

expressing an opinion on the effectiveness of the City's internal control over 

financial reporting. Accordingly, we do not express an opinion on the 

effectiveness of the City's internal control over financial reporting. 

A deficiency in internal control exists when the design or operation of a 

control does not allow management or employees, in the normal course of 

performing their assigned functions, to prevent, or detect and correct 

misstatements on a timely basis. A material weakness is a deficiency, or a 

combination of deficiencies, in internal control such that there is a reasonable 

possibility that a material misstatement of the entity's financial statements will 

not be prevented, or detected and corrected on a timely basis. 

Our consideration of internal control over financial reporting was for the 

limited purpose described in the first paragraph of this section and was not 

designed to identify all deficiencies in internal control over financial reporting 

that might be deficiencies, significant deficiencies or material weaknesses. 

We did not identify any deficiencies in internal control over financial reporting 

that we consider to be material weaknesses, as defined above. 

STABILITY. ACCURACY, TRUST.


The Mayor and City Council 

City of EICajon 


EI Cajon, California 92020 

To the Mayor and Council of the City of EI Cajon, 

We are writing to formally introduce ourselves and request your support of RunEC, a new nonprofit 

SOl(c)3 organization with a mission to create world-class running events that raise funds to support 

organizations that help the neediest in EastCounty. in the process, RunEC enhances EastCounty's brand 

image, attracts new visitors and encourages healthy lifestyles. 

The concept for RunEC was sparked and created by members of the San Diego EastCounty Chamber of 

Commerce, which continues to be an active supporter and will receive a percentage of all funds raised. 

Proceeds are designated for EastCounty charities, specifically for 2013, St. Madeleine Sophie's Center, 

Home of Guiding Hands, Partnerships with Industry, the EastCounty Transitional living Center and 

Stoney's Kids. 

RunEC's upcoming Hooleys to Hooleys Half Marathon and 5k run/walk will be held March 17, 2013, and 

is being organized by world-renowned race director Kathy Loper. Combined with Kathy's Saturday race 

in Mission Bay, we are creating a St. Patrick's Day 'Super Competitor' event that will attract 5,000 

runners and their entourage to our race from San Diego and all surrounding counties. Runners are 

surprisingly wealthy as a demographic - similar to golf but equally men and women - and they are 

highly likely to 'stay and play' with their families and race entourage in East County throughout the 

race weekend. We estimate the immediate economic impact will be $1 million in tourism. This is a 

unique opportunity to showcase East County to wealthy business owners and their families. 

Below is additional data, which demonstrate the economic benefit RunEC brings to EI Cajon and East 

County. 

e Based on data from other races, for every $1.00 participants spend on the race, we can expect 

them to spend an additional $1.29 in the community. That means we can expect to have a $1 

million impact on economic development in our first year alone. The Chicago Marathon brings 

$141 million annually in revenue. 

ID 45-5217954


RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR 

SEWER PLANT DEMOLITION. (Bid No. 012-13. Job No. 3397). 

WHEREAS, the City Engineer has submitted plans and specifications for Sewer 

Plant Demolition; and 

WHEREAS, it appears to be in the best interests of the City of EI Cajon that the 

plans and specifications for said project be approved. 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 

EL CAJON AS FOLLO\/vS: 

1. That the plans and specifications submitted by the City Engineer for Sewer 

Plant Demolition are hereby approved and adopted as the official plans and specifications 

for said project. 

2. Said plans and specifications are directed to be filed in the office of the City 

Engineer of the City of EI Cajon. 

1/8/13 (Item 1.8) 

Sewer Plant Demolition apr


RESOLUTION ORDERING THE WORK AND DIRECTING PUBLICATION 

OF NOTICE INVITING BIDS FOR SEWER PLANT DEMOLITION. 

(Bid No. 012-13, Job No. 3397). 

WHEREAS, plans and specifications have been submitted for Sewer Plant 

Demolition; and 

WHEREAS, it appears to be in the best interests of the City that said work be 

ordered to be done. 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF 

EL CAJON AS FOLLOWS: 

1. That the City Council does hereby order that the Sewer Plant Demolition 

project, be ordered to be done. 

2. That Tuesday, February 5,2013, at 2:00 P.M., in the office designated bythe 

Purchasing Agent of the City of EI Cajon, 200 Civic Center Way, EI Cajon, California, is 

hereby fixed as the time and place for the opening of bids for said project. 

3. The Purchasing Agent of the City of EI Cajon is hereby directed to cause a 

Notice to Bidders to be published in the newspaper, in accordance with the provisions of 

law. 

1/8/13 (Item 1.8) 

Sewer Plant Demolition ntc

mandate to funds created an ""''1unr'Q 

outlined in the Cooperation Agreement approved by the Oversight Board on April 26, 

2012, and the City on May 8,2012. As a method for repayment, DOF recommended that 

the Successor Agency obtain a loan from the City to cover enforceable obligations, execute 

a promissory note in favor of the City in the amount of the loan (the "Promissory Note"), 

and place this Successor Agency obligation to the City on a subsequent ROPS for 

reimbursement, subject to approval by the Oversight Board. 

In order to fund the balance of the payment demanded by the DOF, staff is seeking 

authorization for the Successor Agency to execute the Promissory Note for the principal 

amount borrowed from the City ($662,382), as authorized under the Cooperation 

Agreement previously approved by the Oversight Board and City, at an interest rate equal 

to the Local Agency Investment Fund - LAIF rate, currently 0.35%. 

Separate authorization to execute the Promissory Note by the Successor Agency will be 

taken to the Oversight Board at its regularly scheduled meeting on January 16, 2013. 

FISCAL IMPACT: This action will increase the Fiscal Year 2012-13 General Fund 

budget by appropriating $662,382, which is necessary for compliance with AB1484, 

specifically funds due through the DDR process. Sufficient General Fund revenue has been 

received to date by the City as an Affected Taxing Entity through the dissolution process; 

however, a risk does existfor non-payment should the DOF deny the Promissory Note 

between the City and Successor Agency as an Enforceable Obligation on the next ROPS. 

Staffwill bring back a separate report in the event that any adverse action occurs. 

APPROVED BY: 

Dougtas Williford 

CITY MANAGER

December 15,2012 

Ms. Jenny Ficacci, Successor Agency and Housing Manager 



EI Cajon, CA 92020 

Dear Ms. Flcacci: 

Subject Low and Moderate Income Housing Fund Due Diligence Review 

This letter supersedes Finance's original Low and Moderate Income Housing Fund (LMIHF) 

Due Diligence Review (DDR) determination letter dated November 9, 2012. Pursuant to Health 

and Safety Code (HSC) section 34179.6 (c), the EI Cajon Successor Agency (Agency) 

submitted an oversight board approved LMIHF DDR to the California Department of Finance 

(Finance) on October 12, 2012. Finance issued a LMIHF DDR determination letter on 

November 9, 2012. SUbsequently, the Agency requested a Meet and Confer session on one or 

more items adjusted by Finance. The Meet and Confer Session was held on 

December 6, 2012. 

Based on a review of additional or clarifying information provided to Finance during the Meet 

and Confer process, Finance is revising some of the adjustments made in our previous DDR 

determination letter. Specifically, we are revising the follOWing adjustments: 

til Funding for certain Recognized Obligation Payment (ROPS) III items totaling $37,358 

was denied in Finance's letter in October 9, 2012. Subsequently, the Agency requested 

a Meet and Confer session regarding the disputed obligations. Upon review, Finance 

determined that these items were enforceable obligations. Specifically, Finance 

determined these items are specific project related costs for projects currently under 

construction. Specific project costs are not part of the administrative cost allowance and 

may be listed separately as an enforceable obligation. Therefore, the Agency will be 

allowed to retain the $37,358 and the amount of LMIHF to be distributed to the taxing 

entities will be reduced by the same amount. 

However, Finance continues to believe some of the adjustments made to the DDR's stated 

balance of LMIHF available for distribution to the taxing entities is appropriate. HSC section 

34179.6 (d) authorizes Finance to make these adjustments. We maintain the adjustments 

continue to be necessary for the following reasons: 

OJ The Agency contends the retention of $689,023 is necessary to fund the construction for 

the Chambers Senior Residence project, which is ahead of schedule and will now be 

expended by December 31, 2012. During the Meet and Confer process, the Agency 

included a revised ROPS and Oversight Board Resolution approving the expenditure.

Ms. Jenny Hcaccl 


Page 3 

to take advantage of the provisions detailed in HSC section 34191.:4. Specifically, these 

provisions allow certain loan agreements between the former redevelopment agency (RDA) and 

the city, county, or city and county that created the RDA to be considered enforceable 

obligations. These provisions also allow certain bond proceeds to be used for the purposes in 

which they were sold and allows for the transfer of real property and interests into the 

Community Redevelopment Property Trust Fund once Finance approves the Agency's longrange 

property management plan. 

In addition to the consequences above, willful failure to return assets that were deemed an 

unallowable transfer or failure to remit the funds identified above could expose certain 

individuals to criminal penalties under existing law. - 

Pursuant to HSC section 34167.5 and 34178.8, the California State Controller's Office 

(Controller) has the authority to claw back assets that were inappropriately transferred to the 

city, county, or any other public agency. Determinations outlined in this letter and Finance's 

Housing Assets Transfer letter dated August 23, 2012 do not in any way eliminate the 

Controller's authority. 

Please direct inquiries to Zach Stacy, Manager or Derk Symons, Lead Analyst at 

(916) 445-1546. . 

/ 

.«: 

Sincerely, 

/' ;,;,,;> 

STEVE SZALAY 

/ . Local Government Consultant 

cc: Ms. Victoria Danganan, Senior Accountant, City of EI Cajon- 

Mr. Juan Perez, Senior Auditor and Controller Manager, San Diego County 

Ms. Tracy Sandoval, Assistant Chief Financial Officer, San Diego County 

.California State Controller's Office

The Plan envisions demolition of the former police station building and the acquisition, by 

the City of EI Cajon, of surplus Caltrans right-of-way (0.64 Acres) lying between the 

former police station at Fletcher Parkway and SR-67. It is believed that the acquisition 

of the surplus right-of-way will enhance the value of the former police station parcel. An 

aerial map showing the property configuration is attached. 

In May 2012, the City commissioned a Caltrans approved appraiser to ascertain the value 

of the parcel. The appraiser concluded that the highest and best use of the property as 

attached to the former police station was for commercial use and valued the property at 

$268,000. Caltrans has subsequently decided that there is no further use of the excess 

right-of-way for highway purposes and is offering to sell the property as-is to the City for 

the appraised value. 

To complete the transaction the City must execute the attached Purchase and Sale 

Agreement, and make a non-refundable deposit of 10% ofthe purchase price or $26,800 

before the transaction is sent to the California Traffic Commission (CTC) for approval. 

Upon acquisition, staff is requesting that the property be exempted from City Council 

Policy B-3 for sale as surplus property so that it may be resold for development 

concurrent with the sale of 100 Fletcher Parkway. The 0.64 acre excess Caltrans right-ofway 

and the 3.48 acre former police station parcel(s) will ultimately be consolidated into a 

single 4.12 parcel by the future developer, as a condition of sale by the City. Approval of 

the final sale of 100 Fletcher Parkway is subject to approval by the Oversight Board. 

CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA): The proposed project to 

acquire the surplus Caltrans property was environmentally cleared on March 13, 2012. 

The City Council adopted by RESOLUTION No. 33-12 the Mitigated Negative 

Declaration and Mitigation Monitoring and Reporting Program for General Plan 

Amendment 2011-01, Zone Reclassification No. 2305, and Amendment of Specific Plan 

No. 19 for the former police station. The City changed the general plan designation ofthe 

former police station and Caltrans properties from Public Institution (PI) to Regional 

Commercial (RC), the zoning designation from RS-6 (Residential, Single-Family, 6,000 

square feet), M (Manufacturing), and C-N (Commercial Neighborhood) to C-R (Regional 

Commercial), and amended the governing specific plan to remove the subject properties 

from Special Development Area No.8. Therefore, there is no additional environmental 

review required for the proposed project. 

FISCAL IMPACT: The proposed project budget of $299,500 includes the purchase price 

of $268,000 for the public right-of-way from Caltrans plus miscellaneous operational costs 

of $31,500.

Ten Percent (10%) of the purchase price ($26,800) will be paid as a non-refundable 

deposit to Caltrans before the CTC will take action to abandon the public right-of-way 

prior to completion ofthe sale. An additional appropriation may be needed in FY 2014 to 

fund additional activities for preparing the property for market. The budget sheet for the 

requested appropriation is attached for information. All costs will be budgeted and paid 

by the General Fund. 

PREPARED BY: 

Rob Turner 

DEPUTY CITY MANAGER 

DIRECTOR OF PUBLIC WORKS 

CITY ENGINEER 

APPROVED BY: 


CITY MANAGER 

Attachment: 

Aerial Parcel Map 

Purchase and Sale Agreement & Property Plat 

City Council Resolution No. 33-12 

FY 13 Budget Request 

Property Profile from Long Range Property Management Plan

STATE CALIFORNIA DEPARTMENT OF TRANSPORTATION 

PURCHASE AND SALE AGREEMENT - REAL PROPERTY DD 06541-01-01 

In this Agreement dated January 8, 2013 by and between the City of EI Cajon, 

hereinafter known as "BUYER", and STATE OF CALIFORNIA, DEPARTMENT OF 

TRANSPORTATION, hereinafter known as "SELLER", the parties agree as follows: 

For the sum of Two hundred sixty eight thousand dollars, ($268,000.00) Buyer hereby 

agrees to purchase and Seller hereby agrees to sell real property commonly known as: 

A portion of lot 14, Magnolia Ranch Tract according to Map No. 1674, County 

of San Diego, City of EI Cajon, State of California and legally described in 

Director's Deed No. DD 6541-01-01 (hereinafter referred to as the "property"). 

Subject to the following conditions: 

I 

The purchase price in the sum of two hundred and sixty eight thousand dollars, 

($268,000.00), shall be paid in the form of a cashier's check for this amount 

payable to the order of the Department of Transportation following CTC 

approval. 

Tendered with this Agreement is a non-refundable deposit, in the amount of twenty six 

thousand eight hundred dollars ($26,800.00). 10% of the purchase price two 

hundred sixty eight thousand dollars ($268,000.00) shall be paid on or before January 

22, 2013. The balance of the purchase price two hundred forty one thousand two 

hundred dollars,($241,200.00), shall be paid on or before February 19, 2013, or 

following CTC Approval. The deposit funds are non-refundable should the 

Buyer fail to complete the sale. 

II 

The Seller is Willing to process this sale at no charge to the Buyer, except for the items 

set forth in paragraph IV below. Buyer, at his option, may open an escrow at its own 

expense. The Seller will pay no escrow fees. 

III 

The Buyer agrees to pay any and all recording fees, documentary stamp tax and 

monumentation fees chargeable by the County Recorder. At a later date, the Seller will 

request the fees forwarded, and buyer shall submit to the seller upon demand. 

IV 

The Buyer expressly understands that the right, title and interest in the property to be 

conveyed shall not exceed that vested in the State of California and that the Seller will 

furnish no policy of title insurance. 

Page 1 of3

STATE DEPARTMENT OF TRAf\lSPOrRTA"rION 

PURCHASE AND SALE AGREEMENT - REAL PROPERTY DO 06541-01-01 

Buyer: 


A California Municipal Corporation 

By: Date: _ 

Douglas Williford! City Manager 

ATIEST: 

Kathie J. Rutledge, CMe City Clerk 

APPROVED AS TO FORM: 

Morgan L. Foley, City Attorney 

Seller: 

STATE OF CALIFORNIA 

By: .__ 

Date: _ 

DEPARTMENT OF TRANSPORTATION 

Date: _ 

Rainna Ford, Chief 

Asset Management / RAP Branch 

Right of Way Division 

Page 3 af3

Page 2 of 2, Resolution No. 33-12 

WHEREAS, the Mitigation, Monitoring and Reporting Program will ensure that the 

proposed project will not result in any significant impacts; and 

WHEREAS, in accordance with CEQA Guidelines Section 15074(c), the custodian 

of the Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Program is 

the EI Cajon Community Development Department and all supporting documentation is in 

General Plan Amendment No. 2011-01 file; and 

WHEREAS, after considering evidence and facts, the City Council did consider the 

final Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Program as 

presented at its meeting. 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF EL CAJON 

AS FOLLOWS: 

The City Council finds that: 

1. The foregoing recitals are true and correct, and are findings of fact of the EI 

Cajon City Council in regard to the final Mitigated Negative Declaration and 

Mitigation, Monitoring and Reporting Program. 

2. Based upon said findings of fact, the EI Cajon City Council hereby ADOPTS 

the final Mitigated Negative Declaration and Mitigation, Monitoring and 

Reporting Program for the proposed project to change the General Plan 

designation of the former police station from PI to RC, amend the governing 

SP No. 19 to remove the subject properties from its governance, and change 

the zoning designation from RS-6, M, and C-N to C-R. 

PASSED AND ADOPTED by the City Council of the City of EI Cajon, California at 

an Adjourned Regular Joint City Council/Housing Authority Meeting held this 2yth day of 

March, 2012, by the following vote to wit: 

ATTEST: 

AYES 

NOES 

ABSENT 

DISQUALIFY: 

KATHIE J. RUTLEDGE 

City Clerk 

Lewis, Ambrose, Kendrick, McClellan, Wells 

None 

None 

None 

(Continued 011 Page 3) 

MARK LEWIS 

Mayor of the City of EI Cajon

Page 3 of 3, Resolution No. 33-12 

I hereby certify that the above and foregoing is a full and true copy of Resolution No. 33-12 

of the Resolutions of the City of EI Cajon, California, as adopted by the City Council at the 

Adjourned Regular Joint Meeting of the City Council/Housing Authority on the 2t h day of 

March,2012. 

Kathie J. Rutledge, CMC, City Clerk 

3/27/12 (Item 101)

CAPITAL IMPROVEMENT PROJECT 

FISCAL YEAR 2012 - 2013 

PROJECT NAME: Caltrans Surplus Property Acquislon ACTIVITY: 

Description: 

PROJECT NO; IFM 3453 

Acquire Property following approval by CTC, maintain until marketed and sold, prepare consolidation parcel map 

Justification: 

This project is necessary to enhance the value of the Old Police Station property and configure the whole for its highest 

and best use. 

Scheduling: 

Acquistion to occurr in March 2013 and track remaining tasks with Oversight Board approval of the demoliton of the 

police station and marketing of the consolidated property for sale to a developer. 

Relationship to General & Community Plans: 

Consolidation is consistent with zone and general plan 

Operating Budget Impact: 

Continuing maintainence and utilities until transfer of property 

Prior 

Year(s) Est. Project 

Expend Current Year Expend Appropriation Costs Through 

Actual Estimate FY 12·13 FY 12·13 

Architectural Services (8315) - 

Consulting Services (8325) - 

Engineering Services (8335) - 

Engineering Services-Internal (8336) 10,000 10,000 

Legal Services (8345) - 

Other Prof/Tech Services (8395) - -- 

Title insurance (8516) 3,700 3,700 

Permits & Fees (8560) Map Checking 1,500 1,500 

Land Acquisition (9050) 268,000 268,000 

Repairs & Maintenance (8576) 1,000 1,000 

Utilities (8598) 2,000 2,000 

Relocation Costs (9080) - 

Other Misc. Expenses (8524, 8568, 8576 & 8594) - 

Land Improvements I Abatement & Demo (9055) - 

Contingency (9060) 13,300 13,300 

PROJECT COST TOTAl: - - 2 , I 299,500 

Source(s) of Funds: 

GenealFund 299,500 299,500 

FUNDING TOTAL: - - 299,500 299,500

Site # 15 

Classification: 

Use of Broker: 

Value As-Demolished: 

Disposal Strategy: 

Appendices: 

PROPERTY PROFILE 

Because the property has been operated as the former Police Station 

Headquarters since the 1960's, reuse of the existing building for large 

scale commercial activity is unlikely as the· property is functionally 

obsolete, hazardous materials abatement is required, the building cannot 

be rehabilitated cost-effectively, and should be cleared in preparation for 

new development. 

Available for Sale 

See Disposal Strategy 

$5,100,000 as of March 9, 2011 

$4,850,000 as March 9, 2011 

21


RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL CAJON 

APPROVING THE EXECUTION AND DELIVERY OF AN 

AGREEMENT WITH THE STATE OF CALIFORNIA, DEPARTMENT 

OF TRANSPORTATION, FOR THE ACQUISITION OF 

EXCESS STATE LAND. 

WHEREAS, the State of California, Department of Transportation ("CaITrans") 

has acquired certain property for state highway and right-of-way purposes, known as 

Parcel No. 006541-01-01, located on the north side of Fletcher Parkway, between 

State Route 67 and City-owned property at 100 Fletcher Parkway, in the City of EI 

Cajon (the "Property"); and 

WHEREAS, CalTrans has determined that the Property is no longer suitable for 

state highway, or right-of-way, purposes, and has declared the Property to be "excess 

state land," allowing for the sale or disposal of the Property in accordance with CalTrans 

regulations; and 

WHEREAS, CalTrans regulations allow the sale of excess state land, including 

the Property, to public entities such as the City, provided that the excess state land is 

purchased at fair market value, and further provided that the where the purchaser of the 

excess state land is a public entity, the excess state land is to be used for public 

purposes; and 

WHEREAS, the EI Cajon Planning Commission has adopted Planning 

Commission Resolution No. 10684 finding that the acquisition of the Property to be in 

conformance with the City's General Plan. 

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 

OF EL CAJON AS FOLLOWS: 

1. By Resolution No. 33-12, the EI Cajon City Council has previously 

approved a Mitigated Negative Declaration and Mitigation Monitoring and Reporting 

Program for General Plan Amendment 2011-01, Zone Reclassification No. 2305, and 

Amendment of Specific Plan No. 19, which contemplated the acquisition of the subject 

property. 

2. On behalf of the City of EI Cajon, the City Council does hereby approve 

the acquisition of CalTrans Parcel No. 006541-01-01, more particularly described in 

Exhibit "A", attached hereto and incorporated herein by this reference, from the State of 

California, Department of Transportation, for the price of $268,000, which price is 

determined to be the "fair market value" of the property as established by that certain 

appraisal of real property dated June 27,2012, performed by Anderson & Brabant, Inc.

shall . with vacant, City-owned property located 

100 Fletcher Parkway former EI Cajon Police Station), to provide a viable parcel 

to be marketed for commercial uses in order to prevent blight that may unless the 

City-owned property can be successfully sold for the purposes of commercial 

development, for the benefit of the public, and in particular, the residents of the City of 

EI Cajon. 

4. The City Manager, or such person designated by the City Manager, is 

hereby authorized to execute and deliver those documents, including (but not limited to) 

a proposal, a purchase and sale agreement, escrow instructions, documents of title, 

certificates, and amendments to such documents, as may be necessary to consummate 

the acquisition of the Property, by the City, and the City Clerk shall attest to the 

signature of that person executing the documents on behalf of the City. 

5. The City Clerk is further authorized to execute a certification of the 

acceptance of the Property on behalf of the City. 

Purchase of CalTrans Property (100 Fletcher Parkway) 

1/8/13

Board Members 

Jerome Stocks, Chair 

Mayor, Encinitas 

Jack Dale, First Vice Chair 

Counci/member, Santee 

Jim Janney, SecondVice Chair 

Mayor, Imperial Beach 

Matt Hall 

Mayor, Carlsbad 

Cheryl Cox 

Mayor, Chula Vista 

Carrie Downey 

Councilmember, Coronado 

Carl Hilliard 

Mayor, Del Mar 

Mark Lewis 

Mayor, EI Cajon 

Sam Abed 

Mayor, Escondido 

Art Madrid 

Mayor, La Mesa 

Mary Teresa Sessom 

Mayor, Lemon Grove 

Ron Morrison 

Mayor, National City 

Jim Wood 

Mayor, Oceanside 

Don Higginson 

Mayor, Poway 

Jerry Sanders 

Mayor, San Diego 

Anthony Young 

Council President, San Diego 

Jim Desmond 

Mayor, San Marcos 

Lesa Heebner 

Councilmember, Solana Beach 

Judy Ritter 

Mayor, Vista 

Ron Roberts 

Chairman, County of San Diego 

Bill Horn 

Supervisor, County of San Diego 

Advisory Members 

Han. John Renison 

Supervisor, District 1 

Imperial County 

Malcolm Dougherty, Director 

California Department 

of Transportation 

Harry Mathis, Chairman 

Metropolitan Transit System 

Chris Orlando, Chairman 

North County Transit District 

CAPTClifford Maurer, USN, CEC, 

Southwest Division Naval Facilities 

Engineering Command 

U.S. Department of Defense 

Lou Smith, Chairman 

San Diego Unified Port District 

Javier Saunders, Director 

San Diego County Water Authority 

Allen Lawson/Edwin 'Thorpe' Romero 

Southern California Tribal 

Chairmen's Association 

Remedios Gornez-Arnau 

Consul Ccticrcl cf !'ilcxk:c 

Gary l. GalIegos 

Executive Director, SANDAG 

RDDFD'R. 

• 'NDA 

Friday, December 7, 2012 

10 a.m, to 12 noon 

SANDAG Board Room 

401 B Street, 7th Floor 

San Diego 

AGENDA HIGHLIGHTS 

PROPOSED FY 2013 BUDGET AMENDMENT: 

SAN DIEGO SERVICE AUTHORITY FOR 

FREEWAY EMERGENCIES AND PROPOSED 

AMENDMENT TO BOARD POliCY NO. 001 

PLEASE TURN OFF CELL PHONES DURING THE MEETING 

YOU CAN LISTEN TO THE BOARD OF DIRECTORS 

MEETING BY VISITING OUR WEB SITE AT WWW.SANDAG.ORG 

MESSAGE FROM THE CLERK 

In compliance with Government Code §54952.3, the Clerk hereby announces that the compensation 

for legislative body members attending the followinq simultaneous or serial meetings is: Executive 

Committee (EC) $100, Board of Directors (BOD) $150, and Regional Transportation Commission (RTC) 

$100. Compensation rates for the ECand BOD are set pursuant to the SANDAG Bylaws and the 

compensation rate for the RTC is set pursuant to state law. 

MISSION STATEMENT 

The 18 cities and county government are SANDAG serving as the forum for regional decision-making. 

SANDAG builds consensus, makes strategic plans, obtains and allocates resources, plans, engineers, 

and builds public transit, and provides information on a broad range of topics pertinent to the 

region's quality of life. 

San Diego Association of Governments· 401 B Street, Suite 800, San Diego, CA 92101-4231 

(619) 699-1900 . Fax (619) 699-1905 . www.sandag.org 

N 

'I

BOARD OF DIRECTORS 


ITEM # RECOMMENDATION 

1. PUBLIC COMMENTS/COMMUNICATIONS/MEMBER COMMENTS 

Public comments under this agenda item will be limited to five public 

speakers. Members of the public shall have the opportunity to address the 

Board on any issue within the jurisdiction of SANDAG that is not on this 

agenda. Other public comments will be heard during the items under the 

heading "Reports." Anyone desiring to speak shall reserve time by 

completing a "Request to Speak" form and giving it to the Clerk of the 

Board prior to speaking. Public speakers should notify the Clerk of the 

Board if they have a handout for distribution to Board members. Public 

speakers are limited to three minutes or less per person. Board members 

also may provide information and announcements under this agenda item. 

REPORTS (2) 

+2. PROPOSED FY 2013 BUDGET AMENDMENT: SAN DIEGO SERVICE 

AUTHORITY FOR FREEWAY EMERGENCIES AND PROPOSED 

AMENDMENT TO BOARD POLICY NO. 001 (Samuel Johnson) 

The Board of Directors is asked to: (1) approve the FY 2013 Program 

Budget amendment (Attachment 2) and the addition of one staff position; 

and (2) approve amendments to Board Policy No. 001 to delegate oversight 

authority for the SAFE program to the Transportation Committee 

(Attachment 3). 

3. CONTINUED PUBLIC COMMENTS 

If the five speaker limit for public comments was exceeded at the 

beginning of this agenda, other public comments will be taken at this time. 

Subjects of previous agenda items may not again be addressed under 

public comment. 

+4. CLOSED SESSION: CONFERENCE WITH REAL PROPERTY 

NEGOTIATORS PURSUANT TO GOVERNMENT CODE 

SECTION 54956.8 - (Laura Cote, Marney Cox, and Walter Spath) 

The Board of Directors will be briefed by SANDAG's real property 

negotiator team on the status of negotiations with the Irvine Company 

regarding the price and terms of payment of a potential lease extension at 

the Wells Fargo BUilding located at 401 B Street, San Diego, California. 

3 

APPROVE

ITEM 1# 

1. ROLL CALL 

PUBLIC SAFETY COMMITTEE 


+2. APPROVAL OF THE NOVEMBER 9,2012, MEETING MINUTES 

3. PUBLIC COMMENTS/COMMUNICATIONS/MEMBER COMMENTS 

4. 

+5. 

6. 

Members of the public shall have the opportunity to address the 

Public Safety Committee on any issue within the jurisdiction of the Committee 

that is not on this agenda. Anyone desiring to speak shall reserve time by 

completing a "Request to Speak" form and giving it to the Clerk prior to 

speaking. Public speakers should notify the Clerk if they have a handout for 

distribution to Committee members. Public speakers are limited to three 

minutes or less per person. Committee members also may provide information 

and announcements under this agenda item. 

REPORTS 

REPORT FROM CHIEFS'/SHERIFF'S MANAGEMENT COMMITIEE 

(Chief John Bolduc, Chiefs'/Sheriff's Management Committee) 

Chief John Bolduc will report on the December 5, 2012, meeting of the 

Chiefs'/Sheriff's Management Committee. 

FY 2013 BUDGET AMENDMENT: ASSEMBLY BILL 109 EVALUATION 

(Cynthia Burke) 

The San Diego County Community Corrections Partnership (CCP) recently 

approved the San Diego County Probation Department to allocate funding and 

enter into a contract with SANDAG to conduct a process and impact evaluation 

of the changes made locally as part of Public Safety Realignment and 

Assembly Bill 109 (AB 109). As part of this initial two-year contract, SANDAG 

will document systemwide changes to implement evidence-based practice in the 

housing and supervision of realigned offenders and measure outcomes related 

to recidivism. Regular reports on findings will be provided to stakeholders at 

CCP meetings. The Public Safety Committee is asked to approve an amendment 

to the FY 2013 Program Budget to accept $400,000 in funding for new 

Work Element 23462 - AB 109 Evaluation. 

ARRESTS IN THE SAN DIEGO REGION IN 2011 (Cynthia Burke) 

As the Criminal Justice Clearinghouse for the San Diego Region, SANDAG 

compiles statistics regarding adult and juvenile arrests on an annual basis. These 

statistics document law enforcement's response to crime and include a greater 

number of crime types than the Part I crime statistics that are also reported 

twice each year. An overview of recently released statistics and recent trends 

will be provided. 

3 

RECOMMENDATION 

APPROVE 

INFORMATION 

APPROVE 

INFORMATION

7. 

8. 

9. 

PUBLIC SAFETY BUDGETS IN THE SAN DIEGO REGION (Cynthia Burke) 

On an annual basis, SANDAG compiles information from local public safety 

agencies regarding past fiscal year expenditures and discusses fiscal and staffing 

changes over time. An overview of recently released data and how dollars have 

been allocated to different functions over time will be presented. 

SOCIAL MEDIA AND LAW ENFORCEMENT (David R. Williams, 

San Diego County District Attorney's Office) 

Over the past several years, law enforcement agencies across the country have 

begun to use social media sites, such as Facebook, as both tools for identifying 

and apprehending suspects, as well as for conveying information to the public 

regarding how they can help law enforcement in solving crimes. 

Representatives from local agencies will share information about how their 

departments usesocial media to keep the public informed and safe. 

UPCOMING MEETINGS 

The next meeting of the Public Safety Committee is scheduled for Friday, 

January 18, 2013. 

10. ADJOURNMENT 

+ next to an agenda item indicates an attachment 

4 



INFORMATION

City Clerk Date Sramn 

/3 

TO: Mayor and City Council 

FROM: Mayor Pro Tern Bill Wells 

SUBJECT: Council Activities Report 

RECOMMENDATION: 

I 

. r 

ITEM NO: 7.1 

That the City Council accept and file the following report of Council/Mayor activities attended 

during the current agenda period. 

BACKGROUND: 

Government Code Section 53232.3(d) requires members of a legislative body to provide brief 

reports on meetings attended at the expense of the local agency at the next regular meeting of 

the legislative body. 

REPORT: 

Since the last City Council meeting, I have attended the following events on behalfof the City 

ofEI Cajon: 

January 8, 2013 - City Council Meetings at 3:00 and 7:00 p.m. 

I will be happy to answer any questions you may have. 

SUBMITTED BY, 

Bill Wells 

Mayor Pro Tern 

1

TO: Mayor and City Council 

FROM: Courrcilmember Kendrick 

SUBJECT: Council Activities Report 

RECOMMENDATION: 

ITEM 

That the City Council accept and file the following report of Council/Mayor activities attended 

during the current agenda period. 

BACKGROUND: 

Government Code Section 53232.3(d) requires members of a legislative body to provide brief 

reports on meetings attended at the expense of the local agency at the next regular meeting of 

the legislative body. 

REPORT: 

Since the last City Council meeting, I have attended the following events on behalfofthe City 

ofEl Cajon: 

December 19, 2012· 

January 8, 2013 - 

I will be happy to answer any questions you may have. 

SUBMITTED BY, 

Gary "''''-''';AA'LA.L 

Councilmember 


City Council Meetings 3:00 and 7:00 p.m.

UPDATES 

LEAGUE CALIFORNIA CIVIC LEADERSHIP INSTITUTE Sll GRADUATES 

CELEBRATE ASSEMBLY SEAT WINS 

Record Nine Alumni Sworn in Yesterday 

Dec. 4, 2012 

Issue #120 

The League is proud to congratulate nine California Civic Leadership institute" (CCLl) graduates 

who were sworn in yesterday to the California State Assembly. A record nine CCLI alumni were 

elected this year, the most ever since the program started eight years ago. In the 2013 Assembly 

alone, 69 percent of members will have local government roots. 

CCLI alumni profiles will be featured on the CCLI webpage on the League's website at 

yvww.cacities.org and in Western City magazine. 

Congratulations to our graduates: 

,. AD 5: Frank Bigelow-R, former Madera county supervisor 

,. AD 8: Ken Cooley-D. former council member, Rancho Cordova 

@ AD 10: Marc Levine-D, former council member, San Rafael 

I!I AD 11: Jim Frazier-D, former mayor, Oakley 

13 AD 18: Rob Bonta-D, former council member, Alameda 

@ AD 22: Kevin Mullin-D, former mayor, South San Francisco 

.. AD 32: Rudy Salas-D, former council member, Bakersfield 

.. AD 41: Chris Holden-D. former council member, Pasadena 

.. AD 50: Richard Bloom-D, former mayor, Santa Monica 

The League looks forward to working with these members in their new state capacities. 

About CCLI 

CCLI is an educational program designed for local government elected officials who are looking 

to run for state office. 

The program is designed to give local elected officials a broad, in-depth understanding of critical 

issues facing cities and the state, as well as the history and importance of local government in 

California. CCLI also works to demonstrate tools officials will need to succeed if they progress 

into the State Legislature. The program also provides the opportunity to develop lasting bonds 

among our state's rising leaders. Alumni of the program include Sen. Alex Padilla (D- Pacoima), 

former Assembly Members Fiona Ma (D- San Francisco) and Anthony Portantino (D-Pasadena), 

and Assembly Members Curt Hagman (R-Chino Hills), Roger Hernandez (D-West Covina) and 

Das Williams (D-Santa Barbara). 

The recruitment process for the 2013 CCLI program is underway. For more information contact 

Sam Caygill at scaygill@cacities.org. 

1

iN THiS iSSUE: 

Page 3: Legislature Assigns New Leadership, Assembly Member Achadjian New Local Government Chair 

Page 5: Local Measures November 2012 - Near Final Results 

Are You Current on Your AS 1234 Ethics Training? 

FY 2012 and FY 2013 Federal Grant Opportunities 

Page "1: League's 2012 Legislative Report Available Online Now 

Education and Conferences Updates>- December 2012 

Page 8: The Hit List from WesternCity.com 

Dec.1,2012 

Issue #121 

COURT REQUESTS ADDITIONAL BRIEFING IN LEAGUE'S VLF LAWSUIT TO 

ADDRESS PROPOSITION 30 QUESTIONS 

Sacramento County Superior Court Judge Lloyd Connelly, last month, requested the parties 

provide additional briefing in the League's lawsuit, League of California Cities v, Chiang, to 

address the potential impacts of Proposition 30. The League's lawsuit brings constitutional 

challenges to SB 89/AB 118, enacted in 2011, which shifted vehicle license fee (VLF) revenues to 

fund public safety programs that were previously state-funded prior to SB 89/AB 118. 

For more, see Page 2. 

SEN. LOIS WOLK REINTRODUCES LEGISLATION ON 

INFRASTRUCTURE FINANCING DISTRICTS 

Monday, Dec. 3 was the first day legislation for the 2013-14 legislative session could be 

introduced and Sen. Lois Wolk (D-Davis) wasted no time in introducing SB 33 (Wolk), a measure 

to update Infrastructure Financing District law, to make it a useful tool to help cities maintain, 

repair, and rebuild critical infrastructure and create economic development in their communities. 

SB 33 is a reintroduction of last year's SB 214 (Wolk) that was supported by the League, the 

California Building Industry Association and other organizations. For more, see Page 2. 

MUNICIPAL BOND INTEREST TAX-EXEMPTION TARGETED IN 

FEDERAL BUDGET DISCUSSIONS 

As 2012 draws to a close, the federal government is struggling with the looming fiscal cliff. While 

there is bipartisan support to avoid sequestration, how to do that remains 

controversial. Eliminating or limiting the federal tax exemption on interest earned from municipal 

bonds is one particularly troublesome proposal on the table in both the fiscal cliff and future 

federal tax reform discussions. For more, see Page 2. 

"

costs for infrastructure financing for things like schools, roads, sewer systems, bridges and fire 

stations will increase. 

When talking to congressional representatives, cities should stress the importance of keeping 

municipal bonds exempt from taxes. Representatives should remember: 

.. Tax exempt bonds fund local infrastructure that creates and supports jobs and 

competitive businesses nationwide. 

.. Appropriations: Assembly Member Mike Gatto (D-Los Angeles) 

€I Arts, Entertainment, Sports, Tourism and Internet Media: Assembly Member Ian 

Calderon (D-Whittier*) 

@ Banking and Finance: Assembly Member Roger Dickinson (D-Sacramento) 

@ Budget: Assembly Member Bob Blumenfield (D-Los Angeles) 

€I Budget Subcommittee NO.1 on Health and Human Services: Assembly Member Holly J. 

Mitchell (D-Los Angeles) 

€I Budget Subcommittee NO.2 on Education Finance: Assembly Member Susan A. Bonilla 

(D-Concord) 

€I Budget Subcommittee No. :3 on Resources and Transportation: Assembly Member 

Richard Bloom (D-Santa Monica*) 

e Budget Subcommittee No.4 on State Administration: Assembly Member Tom Daly (D 

Anaheim*) 

@ Budget Subcommittee NO.5 on Public Safety: Assembly Member Reggie Jones-Sawyer, 

Sr. (D-Los Angeles*) 

" Budget Subcommittee NO.6 on Budget Process, Oversight and Program Evaluation: 

Assembly Member Bob Blumenfield (D-Los Angeles) 

@ Business, Professions and Consumer Protection: Assembly Member Richard Gordon (D- 

Menlo Park) 

" Education: Assembly Member Joan Buchanan (D-Alamo) 

.. Elections and Redistricting: Assembly Member Paul Fong (D-Cupertino) 

" Environmental Safety and Toxic Materials: Assembly Member Luis Alejo (D-Watsonviile) 

" Governmental Organization: Assembly Member Isadore Hall (D-Compton) 

@ Health: Assembly Member Richard Pan (D-Sacramento) 

.. Higher Education: Assembly Member Das Williams (D-Santa Barbara) 

e Housing and Community Development: Assembly Member Norma Torres (D-Pomona) 

e Human Services: Assembly Member Mark Stone (D-Scotts Valley*) 

e Insurance: Assembly Member Henry Perea (D-Fresno) 

@ Jobs, Economic Development, and the Economy: Assembly Member Jose Medina (D- 

Riverside*) 

e Judiciary: Assembly Member Bob Wieckowski (D-Fremont) 

.. Labor and Employment: Assembly Member Roger Hernandez (O-West Covina) 

.. Local Government: Assembly Member Katcho Achadjian (R-San Luis Obispo) 

'" Natural Resources: Assembly Member Wesley Chesbro (D-Eureka) 

.. Public Employees, Retirement and Social Security: Assembly Member Rob Bonta (0 

Alameda*) 

" Public Safety: Assembly Member Tom Ammiano (O-San Francisco) 

" Revenue and Taxation: Assembly Member Raul Bocanegra (O-Pacoima*) 

. '" Transportation: Assembly Member Bonnie Lowenthal (D-Long Beach) 

" Utilities and Commerce: Assembly Member Steven Bradford (D-Gardena) 

" Veterans Affairs: Assembly Member AI Muratsuchi (D-Torrance*) 

.. Water, Parks and Wildlife: Assembly Member Ben Hueso (D-San Diego) 

.. Joint Legislative Audit: Assembly Member Adam Gray (D-Merced*) 

• Assembly Legislative Ethic: Assembly Member Cristina Garcia (D-Bell Gardens*), and 

Assembly Member Alan Mansoor (R-Costa Mesa) 

.. Select Committee on Agriculture and the Environment: Assembly Member Marc Levine 

(D-San Rafael*) 

.. Select Committee on Community Colleges: Assembly Member Steve Fox (D-Lancaster*) 

,. Select Committee on Job Creation for the New Economy: Assembly Member Sharon 

Quirk-Silva (D-Fullerton*) 

• Select Committee on Regional Approaches to Addressing the State's Water Crisis: 

Assembly Member RUdy Salas (D-Bakersfield*) 

• Select Committee on Regional Transportation Solutions: Assembly Member Sharon 

Quirk-Silva (D-Fullerton*) 

(0 Select Committee Workforce and Vocational Development in California: Assembly 

Member Rudy Salas (D-Bakersfield*) 

4

aligning educational services provided in those settings; (2) establishing a strong program 

infrastructure to support and improve education services in correctional institutions; (3) ensuring 

that education is well integrated into correctional institutions by making it a critical component of 

the intake and pre-release processes, and by aligning it with support and employment services; 

and (4) encouraging individuals in correctional institutions to identify and achieve education and 

career goals, recognizing that their education paths are not linear or uniform. 

For information on grant requirements and on how to apply for this grant, please visit ED's 

website at 

EDA: FY 2013 Economic Development Assistance Programs 

Application Open Date: Currently Open 

FY 2013 Application Deadline Dates: 

'" Cycle 2 - Dec. 13 

'" Cycle 3 - March 13, 2013 

e Cycle 4 - June 13, 2013 

FY 2014 Application Deadline Dates: 

'" Cycle 1 - Sept. 13, 2013 

Pursuant to EDA's authorizing statute, the Public Works and Economic Development Act of 1965 

(PWEDA), eligible applicants for and eligible recipients of EDA investment assistance include 

cities, counties, and federally recognized Native American tribal governments. 

EDA provides strategic investments that foster job creation and attract private investment to 

support development in economically distressed areas of the United States. Under this FFO, EDA 

solicits applications from both rural and urban areas to provide investments that support 

construction, non-construction, technical assistance, and revolving loan fund projects under 

EDA's Public Works and Economic Adjustment Assistance programs. 

Grants made under these programs are designed to leverage existing regional assets to support 

the implementation of economic development strategies that advance new ideas and creative 

approaches to advance economic prosperity in distressed communities. 

For information on grant requirements and how to apply for this grant, please visit EDA's website 

at 

http://wvvw.grants.gov/search/search.do:jsessionid=knDpQzXGJ6gWnzy1h6Tn3D 'Ifjl

UPDATES 

Dec. 10,2012 

Issue #122 

COUNTY OF LOS ANGELES FILES PETITION FOR REHEARING IN PROPERTY 

TAX ADMINISTRATION FEE CASE 

Last week, the County of Los Angeles asked the California Supreme Court to revisit its decision 

in City ofAlhambra v. County ofLos Angeles where the Court held that the method by which the 

county calculated the Property Tax Administration Fee for the Triple Flip and Vehicle License Fee 

Swap was not consistent with state law. The Court has until February to decide whether to grant 

the county's request. It is rare for the Court to grant a request for rehearing. However, should the 

Court chose to reconsider the case, the existing decision will be vacated and any new decision 

would supersede the Court's previous decision. 

For more background on this case, please see the Nov. 20 CA Cities Advocate story "California 

Supreme Court Rules for Cities in How Payment to Counties is Calculated" at 

./lttg:l/www.cacities.orglTop/News/News-Articles/2012/November/California-Supreme-Court 

Rules-for-Cities-ln-How-P. 

1

UPDATE 

TALKS CONTINUE ON FISCAL CUFF 

NLC Provides Additional Resources on Website 

Dec. 14,2012 

Issue #123 

This week President Barack Obama and House Speaker John Boehner (R - Ohio) have met in 

person and via phone multiple times to discuss how to avoid the fiscal cliff. As there is very little 

information coming out after the meetings, it is difficult to say what will be part of the package. 

Once the details are released, it may be too late for cities to weigh in. As such, cities need to 

continue to be vigilant on several issues that could potentially harm municipal budgets. 

For more, see Page 2.

'Fiscal Cliff' Continued from Page 1... 

Muni Bond Tax Breaks 

The idea to either cap or eliminate the tax exemption for interest earned from municipal bonds 

continues to be on the table. Municipal bond interest is, and has always been, exempt from taxes. 

This distinction provides a significant benefit to investors, and allows cities access to investors 

they would not typically reach in the taxable bond market. If the bond interest exemption is either 

eliminated or capped, the costs for infrastructure financing for projects like schools, roads, sewer 

systems, bridges and fire stations will increase. 

The proposal to cap or eliminate the bond interest exemption is one that seems to have potential 

agreement from both sides. It is critical that city officials communicate the importance of 

maintaining the tax exemption to their congressional representatives in any way possible. If you 

are a small or rural city this is especially important as many congressional members view this as 

a large urban city issue. If this issue is not adopted as part of the plan to avoid the fiscal cliff, it is 

likely to be part of a broader tax reform package in 2013. 

For our original story on this topic, please see the Dec. 7 CA Cities Advocate article "Municipal 

Bond Interest Tax-Exemption Targeted in Federal Budget Discussions" at 

htt!?:jjw\Nw.c_8cities.QIg[foDLNe"'Ls/New§::Articles/20jZlDecerTlberL!I£Lunicipal-Bo[1d-lnteJest··Tax·· 

.r;xemption-TargetS1d-i n. 

Sequestration 

Congress passed the Budget Control Act (PL 112-25) in July 2011, which established mandatory 

spending caps on most federal programs through 2021, and arranged additional across-the-board 

annual spending cuts to federal defense and non-defense discretionary programs over this same 

period. Included in non-defense discretionary (NOD) programs are critical local government 

oriented programs, which include the Community Development Block Grant (CDBG), HOME 

Investment Partnership, COPS and Byrne Justice Assistance Grants. These programs have 

already experienced significant cuts over the last two federal fiscal years, and under federal 

sequestration, additional cuts of approximately 8.4 percent would be imposed on these programs 

for FY 2013 starting on Jan. 2, 2013. 

From 2013 through 2021, funding for these programs would be reduced by nearly 28 percent. 

Federal surface transportation funding will also be cut. In addition, sequestration would 

significantly impact national defense programs. These cuts would be particularly harmful to 

California, which stands to lose $2 billion in defense contract revenue through the sequester, 

resulting in an estimated loss of 135,000 private-sector jobs and $11.7 billion in gross state 

product. 

Advocacy Materials 

The National League of Cities (www.nlc.org/influence-federal-policy) updated their advocacy 

materials this week for issues that may be part of the fiscal cliff discussions. In addition, the 

League's letter and a sample letter for cities can be found at wvvw.cacities.org/federal. Additional 

background and materials can be found at www.munibondsforamerica.org. 

City officials are encouraged to take action immediately. 

2

UPDATES 

Dec. 19,2012 

Issue #124 

CALIFORNIA SUPREME COURT RULES FOR PREVAILING DEFENDANTS IN 

DISABILITY ACCESS ACTIONS 

The California Supreme Court confirmed Monday in Jankey v. Lee that a prevailing defendant in 

a disability access lawsuit is entitled to recover attorney's fees and costs from the plaintiff - when 

the plaintiff alleges both a federal claim under the Americans with Disabilities Act (ADA) and a 

state law claim under Civil Code section 55. The League filed an amicus brief in the case, 

supporting the small business owner who prevailed. 

The owner of a corner store in the Mission District of San Francisco successfully defended an 

ADA lawsuit by a customer who alleged that a step on the threshold of the store made the store 

inaccessible. The store owner proved that it was not feasible to remove the step and install a 

ramp, and that he had been serving disabled patrons through alternative means. The store owner 

spent $130,000 in attorney fees to defend the lawsuit. 

ADA allows a prevailing defendant to recover fees only if the action was frivolous. Civil Code 

section 55, in contrast, provides for mandatory fee awards to the prevailing party - whether 

plaintiff or defendant - without a determination that the action was frivolous. In making its 

decision, the Supreme Court explicitly disagreed with.a recent federal Ninth Circuit case that held 

the ADA preempts Section 55's broader entitlement to recovery of attorney's fees. Instead the 

Supreme Court held that Section 55 mandates attorney's fee awards to all prevailing parties in 

disabled access actions involving state claims, including to prevailing defendants. 

The ruling will allow small business owners and government entities in California to recover their 

fees if they prevail in a state court action based on disabled access issues under Civil Code 

section 55, even if the plaintiff has also alleged claims under the ADA. 

The League thanks Dennis J. Herrera, city attorney of San Francisco, and James M. Emery, 

deputy city attorney, for filing the amicus brief on the League's behalf. 

1

ORDINANCE NO.__ 

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL CAJON AMENDING TITLE 17 OF 

THE EL CAJON MUNICIPAL CODE (ZONING) TO REVISE, CORRECT AND FILL REGULATORY 

GAPS IN CHAPTERS 17.05, 17.10, 17.20, 17.25, 17.35, 17.40, 17.45, 17.60, 17.65, 17.70, 17.75, 

17.80,17.105,17.110,17.120,17.130,17.135, 17.140, 17.145,17.150,17.165,17.185,17.190, 

17.195,17.205,17.215,17.220,17.225,17.240, AND 17.245 OF TITLE 17; ADDING A NEW 

CHAPTER 17.63 IMPLEMENTING AND REGULATING THE SUBSTANTIAL CONFORMANCE 

REVIEW PROCESS, AND ADDING A NEW CHAPTER 17.57 IMPLEMENTING AND REGULATING 

THE MINOR AMENDMENT PROCESS; ADDING A NEW SECTION 17.45.065 OF CHAPTER 17.45 

PROHIBITING CHANGES TO ADULT ENTERTAINMENT PERMITS UNDER THE SUBSTANTIAL 

CONFORMANCE REVIEW PROCESS OR THE MINOR AMENDMENT PROCESS, ADDING A NEW 

SECTION 17.70.120 OF CHAPTER 17.70 REGULATING SPECIFIC PLANS, ADDING SECTION 

17.205.065 OF CHAPTER 17.205 TO ALLOW FOR THE KEEPING OF CHICKENS FOR 

PERSONAL FOOD PRODUCTION, ADDING A NEW SECTION 17.205.105 TO CHAPTER 17.205 

ALLOWING FOR COMMUNITY GARDENS, AND ADDING A NEW SECTION 17.130.115 OF 

CHAPTER 17.130 REGULATING STEEPLES, SPIRES, AND 

SIMILAR ARCHITECTURAL PROJFCTIONS, 

THE CITY COUNCIL OF THE CITY OF EL CAJON DOES ORDAIN AS FOLLOWS: 

SECTION 1. Based upon the record as a whole, the City Council hereby finds that the 

proposed Zoning Ordinance amendments are exempt from CEQA pursuant to the "General Rule" 

that CEQA only applies to projects that have the potential for causing a significant physical effect 

on the environment, (CEQA Guidelines, Section 15061 (b) (3)). The proposed amendments are 

either administrative cleanups or minor in nature due to limitations imposed by performance 

standards and do not raise this project to a level of significance that warrants CEQA analysis 

because the intensity of allowable development is not increased and there are no potentially 

significant environmental effects. 

SECTION 2. Section 17.05.010 of Chapter 17.05 of Title 17 of the EI Cajon Municipal 

Code is hereby repealed. . 

SECTION 3. A new Section 17.05.010 of Chapter 17.05 of Title 17 of the EI Cajon 

Municipal Code is hereby added to read as follows: 

17.05.010 Title. 

This title shall be known as "the Zoning Code." 

SECTION 4. Sections 17.20.050, 17.20.100, 17.60.040, 17.70.010, 17.70.030, 

17.70.070, 17.80.060, 17.190.050 (in the definition of "Awning"), 17.190.270, subdivisions (A) and 

(C)(5), 17.220.030 (in the definitions of "Density Bonus" and "Maximum Allowable Residential 

Development"), and 17.220.060 of Title 17 are hereby amended to replace the term, "zoning 

ordinance," with the term, "Zoning Code". 


Code is hereby repealed. 

(Continued on Page 2)

Page 2 of41, Ordinance No. 



17.10.010 Administration, interpretation, and enforcement. 

The director of community development (director) shall administer, interpret, and enforce the 

provisions of this title, including any ambiguities or omissions herein. In interpreting this title, the 

director shall gather and review all pertinent facts and make a determination based upon those 

facts. The director may consult standard references such as the North American Industrial 

Classification System (NAICS), as such documents may be amended from time to time, when 

administering and interpreting this title. 





17.10.030 Report to planning commission. 

The director shall make a report to the planning comrmssron describing the administrative 

determinations made pursuant to Section17.10.020 above and Chapters 17.57 and 17.63. The 

report shall be submitted as a discussion item in July and January, for the preceding six (6) month 

period. No such report shall be required, if the director has not issued adirector's determination, 

substantial conformance review or minor amendment in the six (6) month period preceding the 

required reporting dates. 





17.25.010 Director to prescribe form of application and required information. 

In accordance with the provisions of California Government Code Section 65940, the director of 

community development shall prescribe the form in which applications are made, and shall 

prescribe the information required to be submitted by the applicant with applications for planned 

residential developments, planned unit developments, signs, site development plans, specific 

plans, variances, conditional use permits, zoning amendments, adult entertainment permits, 

administrative zoning permits, substantial conformance reviews, minor amendments, and historic 

resource designations, and for any other planning applications for which submittal requirements 

are not specified within this title. No application shall be deemed complete, unless it complies with 

such requirements or the director specifically waives the requirement. 

SECTION 11. Chapter 17.35 of Title 17 of the EI Cajon Municipal Code is hereby repealed 

in its entirety. 



SECTION 12. A new Chapter 17.35 of Title 17 of the EI Cajon Municipal Code is hereby 

added to read as follows: 

Chapter 17.35 EXPIRATIONS, TIME EXTENSIONS, AND PERMIT REVOCATION 

17.35.010 Permit expiration. 

A. Any approved discretionary permit becomes null and void, if not legally exercised within the 

time specified in the approving letter or resolution or, if no specific expiration date is given 

in the approving letter or resolution, one (1) year from the date of the approving letter or 

resolution. 

A discretionary permit is considered to be legally exercised, if a building permit necessary 

to construct the approved development, or establish the approved use has been issued 

prior to the expiration date, and work has progressed diligently toward the completion of 

the improvements authorized by the building permit and towards the establishment of the 

approved use. If no building permit is required, "legally exercised" shall mean that the 

approved use has been established and is operational and all required conditions of project 

approval are satisfied. Discretionary legislative actions, as defined in Chapter 17.105, are 

distinct from discretionary permits. The time limits established above for the timely 

implementation of approved discretionary permits do not apply to discretionary legislative 

actions. 

B. If a use is legally established under an administrative zoning permit, conditional use permit, 

minor conditional use permit, or adult entertainment permit, and the use is discontinued for 

any reason for a period of 12 consecutive months or more, the permit shall be deemed 

abandoned by the owner and given inactive status by the Director, making it subject to 

revocation by reason of such inactivity. In the event that the permit is revoked, the use 

allowed under the permit may not be resumed without first obtaining a new administrative 

zoning permit, conditional use permit, minor conditional use permit, or adult entertainment 

permit, as applicable. 

C. Any specific plan or zone reclassification approved by the city council becomes null and 

void, if the conditions or requirements of approval are not met within the time specified in 

such approval, or, if no date is specified, within one (1) year from the date of approval by 

the city council. 

17.35.020 Time extensions. 

Notwithstanding the expiration dates noted above in this chapter, and upon written request from 

the applicant prior to the expiration date, the decision-making body, as applicable, may extend the 

one (1) year time limit, or such other time restriction as specified in the letter or resolution 

approving the plan, permit, or variance. Such time extension may be approved by a letter in the 

case of an administrative zoning permit or site development plan; a resolution in the case of a 

conditional use permit, minor conditional use permit, adult entertainment permit, historic resource 

designation or variance; or a motion approved by the city council, in the case of a conditional 

approval of a specific plan or a zoning reclassification. Furthermore, the time extension may be 

approved without further public hearing. Such time extension may not exceed one (1) additional 



year, and may include such reasonable new conditions as the director or the planning 

commission, as applicable, may apply. No more than one (1) such extension may be granted. 

Decisions of the director and the planning commission regarding time extensions may be appealed 

in accordance with the provisions of Chapter 17.30. 

17.35.030 Permit revocation. 

After holding a public hearing in the manner prescribed in Chapter 17.25, the planning commission 

may revoke or modify any approved discretionary permit for any of the following reasons: 

A. The approval was obtained by fraud; 

B. The approval is being, or has been exercised contrary to the terms or conditions of 

approval, or in violation of any statute, ordinance, law or regulation; 

C. The use for which the approval was granted is being, or has been, conducted in such a 

way as to be detrimental to the public health or safety, or so as to constitute a nuisance. 





17.40.060 Appeals. 

The action of the director or the planning commission in approving, conditionally approving, or 

denying an administrative zoning permit may be appealed pursuant to the requirements listed in 

Chapter 17.30 of this title. Planning commission decisions shall include findings to support the 

issuance or denial of this permit consistent with Section 17.40.020. 

SECTION 15. The definition of "Adult entertainment activities" in Section 17.45.040 of 

Chapter 17.45 of Title 17 of the EI Cajon Municipal Code is hereby repealed. 

SECTION 16. A new definition of "Adult entertainment activities" (to be located immediately 

preceding the definition of "Adult entertainment establishment"), is hereby added to Section 

17.45.040 of Chapter 17.45 of Title 17 of the EI Cajon Municipal Code to read as follows: 

"Adult entertainment activities" means: 

1. Adult bookstore; 

2. Adult cabaret; 

3. Adult drive-in theater; 

4. Adult gift shop; 

5. Adult hotel or motel; 

6. Adult mini-motion picture theater; 

7. Adult model studio; 

8. Adult motion picture arcade; 

9. Adult motion picture theater; 



10. Adult theater; 

11. Body painting studio; 

12. Sexual encounter studio or rap parlor; or 

13. Any establishment, other than those listed above in numbers 1 through 12, which 

offers its patrons services or entertainment, a substantial portion of which is 

devoted to the showing of material which has as its primary or dominant theme 

matter depicting, illustrating, describing or relating to specified sexual activities or 

specified anatomical areas. 

SECTION 17. Section 17.45.065 of Chapter 17.45 of Title 17 of the El Cajon Municipal 




11.45.065 Administrative changes prohibited. 

None of the provisions for a Minor Amendment in Chapter 17.57 or Substantial Conformance 

Review in Chapter 17.63 may be applied to an adult entertainment permit. 



Chapter 11.51 MINOR AMENDMENT 

11.51.010 Intent and purpose. 

The intent and purpose of the minor amendment review process is to accommodate minor 

changes exceeding a level of refinement but less than that which would benefit from public review 

or a full administrative review process to provide reasonable flexibility in responding to changing 

markets and regulations. 

11.57.020 Definition. 

A minor amendment means an administrative process to accommodate minor physical changes to 

an existing project, provided that proposed changes do not raise significant new issues or create 

significant effects, and, cumulatively, the changes would not result in a substantial alteration and 

are offset by substantial, alternative benefits. These changes must be consistent with the intent 

and character of the approved project entitlement plan. 

11.57.025 Thresholds, guidelines and measuring criteria 

A. An increase in floor area up to 10 percent of the entitled building area or 10,000 square 

feet, whichever is less, may be approved 

B. A reduction in the minimum required parking up to 10 percent may be approved, provided 

that an equivalent amount of parking is available along the project's frontage of a public 

street, and if the reduction is offset by a substantial alternative benefit in project quality 



C. A reduction in required landscape area up to 10 percent may be approved, provided 

remaining landscape areas are substantially enhanced and water use reduction measures 

implemented, if the reduction is offset by a substantial, alternative benefit in project quality 

D. No increase nor decrease in housing density may be approved 

E. The director of community development shall prepare guidelines and measuring criteria to 

provide the framework within which to establish applicability, eligibility and decision-making 

guidance in administering the minor amendment process. The director shall forward the 

guidelines and measuring criteria to the Planning Commission as information and input 

upon initial preparation. Any changes thereafter shall be presented and reviewed pursuant 

to Section 17.10.030. 

17.57.030 Authority to apply, 

An application for a minor amendment may be filed with the secretary of the planning commission 

by the property owner for which the development entitlement is applicable, or the property owner's 

agent. 

17,57,040 Authority to approve, 

Minor Amendments may be approved, conditionally approved, or denied by the director of 

community development. The director may, at his or her discretion, decide that the minor 

amendment warrants a formal amendment of the governing entitlement. 

17,57,050 Notice of decision, 

The applicant for a minor amendment shall be notified in writing of the decision of the director to 

approve, conditionally approve, or deny the permit. In the event that the director decides that a 

formal amendment of the governing entitlement is warranted, the applicant shall also be notified in 

writing. 

17,57,060 Appeals, 

The action of the director in approving, conditionally approving, or denying a minor amendment 

may be appealed pursuant to the requirements listed in Chapter 17.30 of this title. 





17.60,120 Placement of buildings, 

The regulations for the placement of buildings are as follows: 


Page 7 of 41, Ordinance No. 

A. Distance Between Buildings. The distance between any building used for human habitation 

and any other building on that same lot or sublet shall not be less than 10 feet. 

B. Combinations of Buildings Permitted. The city council, may allow two (2) or more buildings 

or portions of buildings to be attached without observing the usual building separation 

requirements as long as the resultant structure complies with the California Building Code 

and the California Fire Code. 



Chapter 17.63 SUBSTANTIAL CONFORMANCE REVIEW 

17.63.010 Intent and purpose. 

The intent and purpose of substantial conformance review is to allow for the refinement of 

development projects, but does not result in any meaningful alteration of the project based upon 

the whole record. 

17.63.020 Definition. 

Substantial conformance review means an administrative process for refining an existing project, 

provided that such physical refinements are consistent with and do not materially alter the intent, 

character, development, intensity, density or increase the environmental effects of the approved 

project entitlement plan 

17.63.025 Guidelines and measuring criteria. 

The director of community development shall prepare guidelines and measuring criteria to provide 

the framework within which to establish applicability, eligibility and decision-making guidance in 

administering the substantial conformance review process. The director shall forward the 

guidelines and measuring criteria to the Planning Commission as information and input upon initial 

preparation. Any changes thereafter shall be presented and reviewed pursuant to Section 

17.10.030. 

17.63.030 Authority to apply. 

An application for a substantial conformance review may be filed with the secretary of the planning 

commission by the property owner for which the development entitlement is applicable, or the 

property owner's agent. 

17.63.040 Authority to approve. 

Substantial conformance reviews may be approved or denied by the director of community 

development. The director may, at his or her discretion, decide that a substantial conformance 

review warrants a minor amendment or formal amendment of the governing entitlement. 



17.63.050 Notice of decision. 

The applicant for a substantial conformance review shall be notified in writing of the decision of the 

director to approve or deny the substantial conformance review. In the event that the director 

decides that a minor amendment or formal amendment of the governing entitlement is warranted, 

the applicant shall also be notified in writing. 

17.63.060 Appeals. 

The action of the director in approving or denying a substantial conformance review may be 

appealed pursuant to the requirements listed in Chapter 17.30 of this title. 





17.65.060 Notice of decision. 

The applicant for a site development plan permit shall be notified in writing of the decision of the 

director to approve, conditionally approve, or deny the permit. In the event that the director refers 

the permit application to the planning commission, the applicant shall be notified in writing and the 

notice shall include the date and time of the planning commission meeting. Any such decision shall 

be rendered within 60 calendar days of an application for a site development permit being deemed 

complete by the director pursuant to California Government Code Section 65943, unless additional 

time is deemed necessary to comply with the California Environmental Quality Act as provided for 

in California Government Code Section 65950. 





17.65.080 Appeals. 

The action of the director or the planning commission in approving, conditionally approving, or 

denying a site development plan permit may be appealed pursuant to the requirements listed in 

Chapter 17.30 of this title. Planning commission decisions shall include findings to support the 

issuance or denial of this permit consistent with Section 17.65.020. 





17.70.120 Minor administrative changes 

Each specific plan, regardless of when it was adopted and notwithstanding any language to the 

contrary, is eligible for the provisions contained in Chapters 17.57 and 17.63, for the purpose of 

minor changes afforded by the provisions of substantial conformance review and minor 

amendment. 

SECTION 28. Subsection (F) of Section 17.75.020 of Chapter 17.75 of Title 17 of the EI 

Cajon Municipal Code is hereby repealed. 

SECTION 29. A new Subsection (F) of Section 17.75.020 of Chapter 17.75 of Title 17 of 

the EI Cajon Municipal Code is hereby added to read as follows: 

F. Vehicle storage lot for short-term storage (i.e., no more than two (2) years) of 

excess inventory of new automobiles, when dealership is operated within city limits. 

SECTION 30. The definition of "Building, accessory" or "accessory buildinq" in Section 

17.105.020 of Chapter 17.105 of Title 17 of the EI Cajon Municipal Code is hereby repealed. 

SECTION 31. The following new definitions for "Building, accessory" or "accessory 

bUilding" (to be located immediately preceding the definition of "Building, main" or "main building"), 

"Chicken coop" (to be located immediately preceding the definition of "Chicken run"), "Chicken run" 

(to be located immediately preceding the definition of "Clustered development area (CDA)"), 

"Discretionary permit" (to be located immediately preceding the definition of "Discretionary 

legislative action"), "Discretionary legislative action" (to be located immediately preceding the 

definition of "District"), "Gross floor area" (to be located immediately preceding the definition of 

"Home occupation"), are hereby added to Section 17.105.020 of Chapter 17.105 of Title 17 of the 

EI Cajon Municipal Code to read as follows: 

"Building, accessory" or "accessory building" means a detached building or structure which is 

subordinate and incidental to the main building, structure or use on the same lot. 

"Chicken coop" means a small roofed structure used for the keeping of domesticated chickens, 

and which provides nests for the birds to roost at night. 

"Chicken run" means a fully enclosed structure made of wire mesh which provides access to fresh 

air, soil, and sunshine for domesticated chickens, while ensuring that chickens remain confined 

to the area of the run. 

"Discretionary permit" means a permit authorizing development activity or the establishment of a 

use in which the approving authority exercises its judqment prior to approval or denial. 

Depending on the specifics of a given application and its accompanying circumstances, 

discretionary permits may be approved, conditionally approved, or denied. Examples of 

discretionary permits include but are not limited to: Conditional Use Permits, Site Development 

Plans, Variance, Administrative Zoning Permits, and Adult Entertainment Permits. 



"Discretionary legislative action" means an action of the City Council to establish rules, policies or 

standards of general applicability. Discretionary legislative actions involve the exercise of 

discretion, and are governed by considerations of the public welfare. Examples of discretionary 

legislative actions include but are not limited to: General Plan Amendments, Specific Plans, 

Zone Reclassifications, Zoning Ordinance Amendments, Annexations, and Detachments. 

"Gross floor area" means the total combined floor space in a building or buildinqs. Gross floor area 

includes all interior floor space in a building, includlnq storage areas, stairwells, equipment 

rooms, mezzanines, etc. 

SECTION 32. The use classifications for "Congregate care facility" and "Large box retail", 

in Section 17.110.020 of Chapter 17.110 of Title 17 of the EI Cajon Municipal Code are hereby 

repealed. 

SECTION 33. The following new use classifications for "Community garden" (to be located 

immediately preceding the use classification for "Congregate care facility"), "Congregate care 

facility" .(to be located immediately preceding the use classification for "Convalescent home"), 

"Large box retail" (to be located immediately preceding the use classification for "Liquor store"), 

and "Special training and schooling" (to be located immediately preceding the use classification for 

"Supermarket"), are hereby added to Section 17.110.020 of Chapter 17.110 of Title 17 of the EI 

Cajon Municipal Code to read as follows: 

"Community garden" means a property used for food crop cultivation by individuals or a collective 

group of individuals or organizations, which may be divided into multiple individual garden 

plots. 

"Congregate care facility" means a multi-family residential development designed and devoted to 

housing persons of impaired physical and/or mental capacities, such as frail elderly and 

disabled persons, and offering limited 24-hour non-medical care. The facility contains small 

individual dwelling units of usually only one or two rooms with a small kitchen allowing for 

independent living, but also providing common dining, recreational and social facilities on site, 

and minimal convenience services such as housekeeping, and transportation services for the 

residents. 

"Large box retail" means the retail selling of manufactured or assembled goods that cannot easily 

be hand-carried or placed in a standard shopping cart. Examples of large box retail items 

include, but are not limited to: furniture, large appliances, carpeting and flooring, custom 

windows, and large office machines. 

"Special training and schooling" means a facility for the conduct of instructional services outside 

the setting of educational institutions, vocational schools, and trade schools. Examples of 

special training and schooling include: arts and crafts instruction, sports and recreational 

instruction, language instruction, automobile driving schools, and educational support services 

such as exam preparation and testing. 



SECTION 34. Table 17.115.120 in section 17.115.120 is hereby amended to read as 

follows: 

Table 17.115.120 

Special Land Use Regulations 

Adult entertainment establishments Chapter 17.45 

Agriculture and animals Chapter 17.205 

Alcohol sales Chapter 17.210 

Automotive fueling stations Chapter 17.215 

Bed and breakfast establishments Chapter 17.225 

Family daycare homes Chapter 17.225 

Garage sales Chapter 17.225 

Home occupation business Chapter 17.225 

Kitchen facilities in hotels and motels Chapter 17.225 

Massage parlors Chapter 17.225 

Mobile home and temporary buildings uses as temporary offices Chapter 17.225 

Modified development standards for affordable housing Chapter 17.220 

Motion picture theaters Chapter 17.230 

Offsite outdoor automobile sales Chapter 17.225 

Outdoor dining areas Chapter 17.225 

Personal storage facilities Chapter 17.235 

Resource recovery centers Chapter 17.225 

Roadside stands Chapter 17.225 

Satellite antennas Chapter 17.225 

Second-family units in residential zones Chapter 17.140 





17.120.060 Required findings. 

Before approving a conditional use permit for the expansion, reconstruction or replacement of a 

nonconforming use or structure as provided for in this chapter, the planning commission shall 

make the following findings, which are in place of the findings typically required for approval of a 

conditional use permit: 

A. The strict or literal interpretation and enforcement of the specified regulations within this 

section would result in practical difficulty or unnecessary hardship. 

B. The approval of the conditional use permit will not be detrimental to the public health, 

safety or welfare, or materially injurious to properties or improvements in the vicinity. 







17.130.070 Distance between buildings. 

A. There is no minimum distance required between non-residential buildings on the same lot. 

However, all such buildings are subject to building and fire safety code requirements 

including ADA requirements. 

B. Where two (2) or more buildings on the same lot are, by definition of this title, considered 

main buildings, then the front yard setback requirement shall apply only to the building 

closest to the front lot line. 



17.130.115 Steeples, spires, clearstories and similar architectural projections. 

Maximum building height is defined in Chapter 17.105, and is listed for the various zones of the 

City within tables contained in Chapters 17.140 through 17.170. Maximum building height shall not 

be exceeded except as provided elsewhere in this title, including as follows: Roof-top mechanical 

screens, architectural features such as steeples and spires, elevator shafts, stairwell enclosures, 

and clearstories, covering a combined total of less than 25% of the roof area of a building, and not 

exceeding a height of 20 feet, shall not be counted in building height calculations for the purposes 

of implementing this title. Additionally, a building may contain architectural features such as 

steeples, spires, or clearstories exceeding 20 feet above the maximum building height of the 

underlying zone, subject to approval of a minor conditional use permit. 





17.130.160 Trash and recycling areas. 

Accessible, lighted, trash pickup and recycling areas shall be provided in conjunction with parking 

areas for all multiple-family residential, commercial, office, and industrial developments. Trash and 

recycling areas may be contained in a building, but such trash and recycling areas shall be 

accessible to the refuse contractor or be accessory to an outside trash and recycling area. Any 

trash and recycling area not contained within a building shall be enclosed by a solid six-foot-high 

masonry wall, have view-Obscuring metal or metal frame gates six feet in height. If required to be 

covered, the enclosure shall include a solid metal roof element. The floor shall be concrete and 

shall slope toward the back of the enclosure, away from the entrance, at a 2% grade. 



All new multi-family residential, commercial, office, and industrial developments shall provide 

double-binned enclosures with minimum interior dimensions of five feet by sixteen feet to 

accommodate trash and recycling containers. The director of community development may 

authorize a single-binned enclosure under certain circumstances. The minimum interior 

dimensions of a single-binned enclosure shall be five feet by eight feet. When considering 

authorization of a single-binned enclosure, the director shall consider the nature and scale of uses 

on the property as they relate to solid waste generation and the need for recycling facilities. The 

director may also consider the unique spatial features of the site in question. 

Trash and recycling enclosures shall not be located within exterior yard setback areas or within 

five (5) feet of any alley. One trash and recycling enclosure shall be provided for each multiple-unit 

residential development of six (6) units or more, and one additional trash and recycling area shall 

be provided for each 30 dwelling units thereafter. Trash and recycling areas shall be used for the 

storage of disposable trash and recycling only, and shall be maintained in a neat and sanitary 

manner. All trash and recycling areas required by this title shall satisfy all applicable storm water 

regulations and all building and fire safety codes. 





17.130.255 Storage space. 

Additions to existing commercial buildinqs for the purpose of storage space only, without providing 

required additional off-street parking spaces, may be permitted SUbject to the granting of a minor 

conditional use permit. In no event, however, shall such additions exceed thirty percent of the total 

gross floor area of the existing building or eight hundred (800) square feet, whichever is less. 





17.135.070 Signs. 

Signing shall only be provided in accordance with those sign standards identified in any applicable 

specific plan. Comprehensive sign standards shall be required for all new or expanded 

developments that include a mix of uses, or four (4) or more businesses on any given site. Said 

Sign standards shall incorporate pedestrian oriented signing. 





A "A" means "adult entertainment permit" 

C "C" means "conditional use permit" 

o "0" means "director's determination" 

M "M" means "minor conditional use permit" 

P "P" means "permitted use" 

S "S" means "site development plan permit" 

T 'T' means "temporary use permit" 

Z "Z" means "administrative zoning permit" 

X "X" means "not permitted" 

In addition to the abbreviated terms listed above, the land use table incorporates endnotes, which 

are indicated by numerical designators in the final column of the table. The numerical designators 

correspond with written notes listed at the bottom of the table. The notes provide additional 

information and direct readers to other applicable sections of the EI Cajon Municipal Code. 

Table 17.140.210 

Residential Land Use Table 

Residential Zones PRD RS-40 RS-20 RS-14 RS-9 RS-6 RM- RM- RM- RM- RM- RM- Notes 

Primary Residential Uses (subject to density restrictions) 

6000 4300 2500 2200 1500 HR 

Congregate care facility X X X X X X X X P P P P 

Dwellings; attached duplex X X X X X X X p P P P P I 

units or two detached 

dwelling units 

Dwellings; up to three X X X X X X p X X X X X 2 

detached single-family 

homes on the same lot, 

including common interest 

developments 

Dwellings; multi-family, X X X X X X X P P P P P 2 

attached or detached, 

including common interest 

developments 

Dwelling; single-family P P P P P P P P P P P P 2 

detached 

Foster family home P P P P P P P P P P P P 

Foster family institution X C C C C C C C X X X C 

Group Residential X X X X X X C C C C C C 3 

Residential care facility for P P P P P P P P P P P P 

6 or less 

Residential care facility for X X X X X X X C C C C C 4 

7 or more 

Accessory Residential Uses 

Accessory structures with X MC MC MC MC MC MC X X X X X 5 



combined areas greater than 

800 sq. ft., or which include 

restrooms 

Bed and breakfast X e e e e e e e e e e X 6 

Family day care home, Z Z Z Z Z Z Z Z Z Z Z Z 

large 

Family day care home, P P P P P P P P P P P P 

small 

Home occupation business P P P P P P P P P P P P 7 

Keeping chickens for P P P P P P P X X X X X 8 

personal use 

Keeping pet pot-bellied X P P Me Me MC MC X X X X X 8 

[pigs 

Keeping pet horses e p p C C X X X X X X X 8 

Keeping ofdomesticated X P P MC Me MC MC X X X X X 8 

animals under 125 pounds 

for family use 

Keeping rabbits and geese X P P X X X X X X X X X 8 

for family use 

Second family dwelling X Z Z Z Z Z X X X X X X 9 

unit 

Nonresidential Uses 

Card room, non-gambling X P P P P P P P P P P P 4, 18 

Cemetery, crematory, and X C C C C C C C C C C C 

mausoleum 

Circuses and carnivals X C C C C C C C C C C C 

Clubs: youth clubs, X C C C C C C C C C C C 

professional organizations, 

union halls, fraternal 

organizations, and similar 

uses 

Residential Zones PRD RS-40 RS-20 RS-14 RS-9 RS-6 RM- RM- RM- RM- RM- RM- Notes 

6000 4300 2500 2200 1500 HR 

Commercial agriculture X p P X X X X X X X X X 8 

including: field crops, 

orchards, vineyards, 

horticulture, and 

floriculture 

Community gardens p p p p p p p p 

p---Y 

Day care facility X C C C C C C C C C C C 10 

(commercial or non-profit 

including preschool) 

Educational institutions X C C C C C C C C C C C 

Equestrian boarding X C X X X X X X X X X X 

(Continued on Page 18) 

p p ---.L


7 Subject to the provisions ofSection 17.225.050 (home occupations). 

8 Subject to the provisions ofChapter 17.205 (animals and agriculture). 

9 Subject to the provisions of Section 17.140.180 (second family units). 

lOA "day care facility" is not a "family day care home" as defined in Chapter 17.105. 

11 Excludes sewage disposal facilities. 

12 Must conform to the standards provided in Section 17.185.200 (parking standards). 

13 Excludes wireless communications facilities. 

14 As ancillary to an approved non-residential use, when activity not already covered by CUP. 

15 Electric substations and transmission lines are exempt from the CUP requirement for utilities. 

16 Subject to the provisions ofChapter 17.245 (wireless communications facilities). 

17 As determined by the director ofcommunity development. 

18 May only be operated as an ancillary use to a bona fide non-profit club, society, professional organization, union hall, fraternal 

organization, and similar (non-profit) use, with a valid conditional use permit for the primary use. Subject to additional card 

room regulations listed in Chapter 5.28 (Card Rooms) and Chapter 17.225 (Miscellaneous Special Uses and Regulations) of this 

Title. Non-profit status must be in place prior to application submittal, as applicable. 





17.145.090 Commercial setbacks. 

The table below lists the minimum building setback requirements in commercial zones. The 

endnotes at the bottom of the table contain information that modifies the information listed in the 

table's matrix. 

Table 17.145.090 

Commercial Setbacks 

Zone District Exterior Yard Setback Setback From Residentially Zoned 

Property 

o.r 10 feet' 10 feet' 

C-N 10 feet] 10 feet' 

C-G 10 feet' 10 feet 2 

C-R 10 feet] 10 feet' 

C-M 20 feet 10 feet' 

] Exceptas modified by SpecificPlanNo. 182. 

2 If the required setbackis at the rearof the lot, access to the rearyard is required as indicated in Section 17.130.240. 







o-p C-N C-G C-R C-M Notes 

dismantling 

Auto rental including the rental ofmoving vans, 

trucks and trailers 

X X C X C 1 

Auto sales, including: autos, motorcycles, light 

trucks, and recreational vehicles 

X X C C C 4 

Automotive body repair X X C X C 1 

Automotive service and repair X X C C C 1 

Automotive fueling station X C C C C 5 

Auto washing and detailing, full service carwash X X C X X 1 

Auto washing, self-service carwash X C C X X 1 

Bail bonds office p p p p P 1 

Beauty salon, nail salon, barber shop, and day 

spa 

P P P P X 6 

Beauty supply and cosmetics sales P P P P X 

Billboard sign P P P P P 7 

Blood banks and blood donation facilities P P P P X 1 

Blood plasma centers C X X X X 1 

Boat sales including ancillary service and repair X X P X C 

Book store, including news copy and magazine 

sales 

P P P P X 

Bowling alley X X C C X 

Camera and photographic sales and related 

services 

X P P P X 

Camping facilities (overnight) including 

Recreational Vehicle parks 

X X C C X 1 

Card room, non-gambling P P P P X 3,27 

Carpet and drapery cleanin&il-nd repair services X X X X P 

Cemetery, crematory, and mausoleum C C C C C 

Child activity centers X P P P X 

Circuses and carnivals C C T T C 

Clothing and apparel store, new 

Clothing and costume rentals 

X 

X 

P 

P 

P 

- 

P 

P 

P 

X 

X 

Clubs: youth clubs, professional organizations, 

union halls, fraternal organizations, and similar 

uses 

C C C C X 

Cocktail lounge X C C C X 8, 9 

Community gardens P P P P P 30 

Contract construction services X X X X P 

Convalescent home C C C C C 1 

Convenience market X P P P X 8 

Custodial and cleaning services including 

property management and building maintenance 

with associated vehicle, equipment, and supply 

X X X X p 



o-r C-N C-G C-R C-M Notes 

Kennel X X X X e 

Kiosk, booth, and stand X Me Me Me Me 11 

Laundry and dry cleaning services, retail, X P P P X 

including coin operated self-service laundry 

Liquor store X e e e X 1, 8 

Live entertainment X X e e X 3 

Locksmith and related services X P P P P 

Manufactured housing sales including modular X X p X e 

and mobile home sales 

Market X P P P X 

Martial arts instruction and training X P P P X 

Massage parlor, steam bath, and sauna room X X e e X 1,3,6, 

12 

Medical and dental office, laboratories, and P P P P X 

clinics open to the general public including 

acupuncture, chiropractic, and other state 

licensed health care practices 

Medical and dental laboratory not open to the P P P P P 

public 

Medical marijuana dispensary X X X X X 

Modeling agency, talent agencies and P P P P X 

entertainment booking services (office only) 

Motion picture theatre (indoor) X X e e X 13 

Music lessons conducted indoors P P P P X 

Music store including the sale ofmusical X P P P X 

instruments, sheet music, and recorded music 

Office, administrative, business and professional P P P P P 

Office machine sales X P P P P 

Optical goods including eye glasses, contact P P P P X 

lenses, and eye exams 

Outdoor dining, accessory to authorized X Z Z Z Z 14 

restaurant or cocktail lounge 

Outdoor sales events at existing business T T T T T 

developments 

Parcel delivery and postal services (office only, X X P P X 

does not include U.S. Postal Service offices) 

Pawn shop or pawn broker X X P P X 1,_L 

.- 

Personal storage facility X X e X e 15 -- 

Pest control services X X X X P 

Pet supply stores including pet sales and pet X P P P X 

adoption services with accessory indoor 

veterinary and grooming services 

Pharmacy P P P P X 16 




Photocopying and other retail office services for 

the general public 

P P P P X 

Photographic studio including ancillary photo 

finishing services 

P P P P X 

Plant nursery X X P P P 1 

Pool hall or billiards parlor X X C C X 3 

Prefabricated storage containers used for short 

term storage 

T T T T T 

Private security company with watch dogs X X C C C 1,3 

Public assembly, sports related including 

stadiums, arenas, racetracks, etc. 

C C C C C 

Public assembly, non-sports related, including 

amphitheaters, drive-in theaters, concert halls, 

playhouses, banquet halls, etc. 

X X C C X 

Recreational facility-commercial indoors, 

including skating rinks, radio controlled cars, 

lazer tag, etc. 

X X C C X 

Recreational facility-commercial outdoors, 

including golfcourses, driving ranges, radio 

controlled cars, skateboard parks, paintball 

facilities, etc. 

X X C C C 

Resource recovery center X C C C C 17 

Restaurant X P P P C 8,9, 

18 

Restaurant, take-out only X P P P C 19 

Seasonal outdoor businesses such as Christmas 

tree lots 

T T T T T 

Secondhand merchandise X P P P X 1,3__ 

Shoe sales and shoe repair X P P P X 

Special training and schooling conducted indoors P P P P P 

Special training and schooling conducted 

outdoors 

X X X X MC 

\---- 

Sporting goods, bicycles,_and toy stores X p- P P X 

Supermarket X P P P X --1---- 

Surplus store X P P P X 1 

. --- 

Swap meet and flea market X X X C X 1,3 

Tailoring, alteration, and sewing services P P P X X 

Tattoo and body piercing studio X X P P X 1 

Thrift shop X P P P X 1 

Ticket sales office P p P P X 

Tobacco and smoke shop C C C C X 1,20 

Tool and equipment repair and sharpening X X P P X 1 

services excluding heavy equipment repair - 




Trailer and camper sales, non-motorized X X p X C 

Travel agency P P P P X 

Vehicle storage lot (new vehicles) X X T T T 

Veterinary and small animal hospital, indoors 

only 

X X P P P 1 

Video sales and rentals including video game 

sales and rentals 

X P P P X 

Vocational and trade school (conducted indoors) X C P P P 9 

Vocational and trade school (conducted 

outdoors) 

X X X X C 9 

Volume discount store (including 99¢ and 

closeout stores) 

X X P P X 1 

Watch, clock, and jewelry sales and repair P P P P X 

Other similar uses 

- 

Light Industrial Uses 

D D D D D 21 

Contract construction services X X X X P 

Direct selling organizations (baked goods, ice 

cream trucks, bottled water vendors, catering 

wagons, etc.) 

X X X X P 

Food and beverage processing X X X X P 

Heavy equipment service and repair X X X X C 

Laundry services, industrial, including linen, 

diaper, and uniform cleaning, alteration and 

repair services 

X X X X P 

Light manufacturing X X X X P 

Printing and publishing services, non-retail and X X P P P 

excluding contact with the general public 

Recycling center for metal, cardboard, glass, e- X X X 

-- 

X C 

waste, etc. 

Scientific and commercial testing laboratories 

including product research and development 

X X X X P 

-- 

Service and repair ofconsumer electronics X X X X P 

Service and repair of light machinery including 

vending machines, office machines, large 

household appliances, etc. 

X X X X P 

Service and repair of precision instruments 

including cameras, optical devices, medical 

devices and electronic testing equipment 

X X X X P 

Warehousing and distribution X X X X P 

Wholesale trade excluding explosives X X X X P 

- 

Other similar uses D D D D D 21 

Transportation, Communication and Utilities 

Airports and flying fields C C C C C 



o-e C-N C-G C-R C-M Notes 

Ambulance service e e e e P 1,3 

Bus passenger terminals, public or private charter X X p P P 

Bus parking and maintenance facility X X X X P 

Heliport e e e e e 

Light rail terminal X X X X P 

Limousine service X X X X P 3 

Media production including broadcasting studios, X P P P P 

and audio and video recording studios 

Parking lots and garages, short term requiring e P P P P 

payment ofa fee 

Parking lots and garages, short term free parking P P P P P 

Radio, and/or television broadcasting facilities e e e e c 22 

with transmitters 

Railroad facilities, including switching stations, X X X X P 

maintenance yards,rail freight and passenger 

terminals 

Solid waste disposal facility e e c e c 1 

Taxicab terminal X X p p P 

Towing services with vehicle storage X X X X e 1,3 

Towing services without vehicle storage X e C 1,3 

Trucking terminal for motor freight including X X X X P 

parcel delivery service terminals 

Utilities, excluding sewage treatment e e e e c 

Vehicle storage facility, long term, including lots X X X X e 1 

and structures 

- 

Wireless communication facilities, freestanding e e e e c 23 

Wireless communication facilities, P P P P P 23 

architecturally integrated or other stealth design 


Institutional and Charitable Uses 

Botanical garden, and arboretum e e e e X 

Detention facility excluding prisons and juvenile X X X X e 

halls 

Educational institution e e c e c 

Governmental administrative offices e e e e e 

Governmental operation center and service e e e e c 

facilities 

Hospital e e e e X 

Library, public P P P P X 

Military base e e e e e 

-- 

Museum Me Me Me Me X 

Non-profit welfare and charitable organizations X X e e X 1,28 

and services 



or C-N C-G C-R C-M Notes 

Parks, playgrounds, and amateur sports fields, X C C C C 

public or private 

Public safety facility C C C C C 

Religious facilities C p p p C 9 

Temporary feeding area C C C C C 

Transition service center X X C C P 1,24 

United States Postal Service facilities C C C C C 25 

WIC center P P P P X 1 

Zoo C C C C X 


Residential Uses 

Caretaker's unit P P P P P 26 

Residential care facility C C C C X 1 

Prohibited in SP 182, However, automotive service and repair uses are permitted with approval ofa CUP in the portion of SP 182 that is also a 

part of Special Development Area No, I0 and zoned C-M. 

2 Subject to the provisions ofChapter 17.45 (adult entertainment establishments) 

3 Requires a Special Operations License as described in ECMC Chapter 5,16. For towing services, only police towing services require a Special 

Operations License 

4 Offsite outdoor automobile sales are subject to the provisions of Section 17.225,190 

5 Subject to the provisions ofChapter 17,215 (automotive fueling stations) 

6 Subject to the provisions ofChapter 5.40 of the EI Cajon Municipal Code, 

7 Subject to the provisions of Section 17.190,270 (billboard signs) 

8 Subject to the provisions of Chapter 17.210 (alcohol sales) 

9 Subject to parking requirements listed in Section 17.185.190, 

10 "Check cashing only" services are prohibited in SP 182 

11 Subject to the provisions of Section 17,130,250 (kiosks) 

12 Subject to the provisions ofSection 17,225.070 (massage parlors) 

13 Subject to the provisions of Chapter 17,230 (motion picture theaters) 

14 Subject to the provisions of Section 17,225,090 (outdoor dining areas) 

15 Subject to the provisions ofChapter 17,235, (personal storage facilities) 

16 The retail display area shall not exceed 15% of the gross floor area in the O-P zone. 

17 Subject to the provisions of Section 17,225,100 (resource recovery centers) 

18 Restaurants limited to 2,000 square feet gross floor area in the C-M zone. 

19 Subject to the provisions of Section 17,225,130 (take-out only restaurants) 

20 Subject to the provisions ofChapter 17.240 (tobacco and smoke shops) 

21 As determined by the director of community development 

22 Excludes wireless communications facilities as defined in Chapter 17.110 

23 Subject to the provisions of Chapter 17,245 (wireless communications facilities) 

24 Subject to the provisions of Section 17,225.170 (transition service centers) 

25 Excludes public contact in the C-M zone (mail processing only) 

26 Only one caretaker's unit permitted per lot in association with an authorized primary use occupying the same property. Must be attached to 

primary structure on the lot, if such a structure exists, 

the 



27 May only be operated as an ancillary use to 1) a bona fide non-profit club, society, professional organization, union hall, fraternal organiza 

tion, and similar (non-profit) use, with a valid conditional use permit for the primary use, and 2) a restaurant, except that card rooms are pro 

hibited at restaurants in SP 182. Subject to additional card room regulations listed in Chapter 5.28 (Card rooms) of Title 5 and Chapter 17.225 

(Miscellaneous Special Uses and Regulations) of this Title. Non-profit status must be in place prior to application submittal, as applicable. 

28 Non-profit medical and dental clinics are permitted uses. They do not require a CUP and are not prohibited in SP 182. 

29 Subject to the parking requirements for places of assembly listed in Table 17.185.190. 

30. Subject to the provisions ofChapter 17.205 (agriculture and animals) 





17.150.170 Manufacturing zone land use table. 

The following table lists uses that may be established in the manufacturing (M) zone. The 

abbreviations used in the land use table shall have the following meanings: 

A "A" means "adult entertainment permit" 

C "C" means "conditional use permit" 

D "D" means "director's determination" 

M "M" means "minor conditional use permit" 

P "P" means "permitted use" 

S "S" means "site development plan permit" 

T "T" means "temporary use permit" 

Z "Z" means "administrative zoning permit" 

X "X" means "not permitted" 

In addition to the abbreviated terms listed above, the land use table incorporates endnotes, which 

are indicated by numerical designators in the final column of the table. The numerical designators 

correspond with written notes listed at the bottom of the table. The notes provide additional 

information and direct readers to other applicable sections of the EI Cajon Municipal Code. 



M Notes 

Private security company without watch dogs P 1 

Radio, and/or television transmitting facilities C 

Railroad facilities, including switching stations, maintenance yards, rail freight and passenger P 

terminals 

Recreational facility-Commercial outdoors, including golf courses, driving ranges, radio C 

controlled cars, skateboard parks, paintball facilities, and other similar uses 

Recycling center for metal, cardboard, glass, e-waste, etc. C 

Religious facilities C 

Resource recovery center C 

Restaurant C 6,7, 

8 

Sawmill, including the processing and manufacturing ofwood products P 

Scientific and commercial laboratories, including research, development, and testing services P 

Service and repair of light machinery, including vending machines, office machines, large P 

household appliances, etc. 

Solid waste processing facility C 

Special training and schooling (conducted indoors) P 12 

Special training and schooling (conducted outdoors) MC 

Sports assembly including stadium, arena, racetrack and other large sporting venue C 

Swimming pool, swimming school, and other aquatic recreation facilities C 

Temporary feeding area C 

Towing services with or without vehicle storage C 1 

Transition service center P 9 

Trucking terminal for motor freight, including parcel delivery service terminals P 

-- 

Truck sales, including the sale of large commercial trucks, vans, and buses C 

United States Postal Service facilities; processing only P 

Utilities, including sewage treatment facilities C 

Vehicle storage facility - long term, including lots and structures C 

Vehicle storage lot - temporaty T 

Veterinary service and animal hospital C 

Vocational or trade .1 indoor or outdoor C 8 

Warehousing, including wholesale trade and distribution and excluding explosives P 

Welding and metal fabrication P 

Wireless communication facilities; freestanding C 

Wireless communication facilities; architecturally integrated or other stealth design P 

Other similar uses D 10 

Residential Uses 

Caretaker's unit accessol)' to an authorized land use P 11 

Residential care facility C 

Requires a special operations license as described in ECMC Chapter 5.16. For towing services, only police towing services require a special 

operations license. 

2 Small arms ammunition only. Nothing larger than 30-caliber ammunition. 

3 Permitted by right only in Special Development Area No.6. Otherwise requires a conditional use permit in the manufactnring zone. 



4 Light manufacturing describes a wide range ofmanufacturing uses as defined in Chapter 17.110. 

5 Includes aerial photography, photo editing and finishing, service and repair of cameras and other optical devises. 

6 Restaurants located outside ofSpecial Development Area No.6 are limited to 2,000 square feet of gross floor area. 

7 Subject to the provisions ofChapter 17.210 (alcohol sales). 

8 Subject to the parking requirements listed in Section 17.185.190. 

9 Subject to the provisions ofSection 17.225.180 (transition service centers). 

10 As determined by the director ofcommunity development. 

II Only one caretaker's unit permitted per lot in association with an authorized primary use occupying the same property. Must be attached to the 

primary structure on the lot, if such a structure exists. 

12 If the school provides instruction to persons under the age of 18, then a Minor Conditional Use Permit is required. 

SECTION 62. A new subsection (0) of Section 17.165.020 of Chapter 17.165 of Title 17 

of the EI Cajon Municipal Code is hereby added to read as follows: 

A. Keeping of chickens, subject to the provisions of Section 17.225.065. 

SECTION 63. Subsections (G), (H), and (I) of Section 17.165.080 of Chapter 17.165 of 

Title 17 of the EI Cajon Municipal Code are hereby repealed. 

SECTION 64. New subsections (G) and (H) of Section 17.165.080 of Chapter 17.165 of 

Title 17 of the EI Cajon Municipal Code are hereby added to read as follows: 

G. Two or more buildings or portions of buildings may be attached without observing the 

usual building setback requirements of the PRO zone, as long as the resultant structure 

complies with the California Building Code and the California Fire Code. 

H. All other setbacks and distances between structures may be established as part of the 

project approval but are SUbject to California Building and Fire Code requirements. When 

considering building setbacks and distances between structures in a PRO, consideration 

shall be given to the overall project design and the relation of buildings to each other, to 

project topography, and to surrounding development. 





17.185.040 Fractional parking numbers. 

All cumulative parking requirement calculations resulting in a fractional remainder of .50 or greater 

shall be rounded up to require one additional space. A fractional remainder of less than .50 shall 

be rounded down to require one less space. 







17.185.170 Residential zone parking requirements. 

The table below lists the minimum parking requirements for residential developments. For parking 

requirements related to institutional uses and government facilities located in residential zones, 

see the commercial zone parking table located below in Section 17.185.190. The endnotes at the 

bottom of the table contain information that supplements the information listed in the table's matrix. 

Table 17.185.170 

Residential Zone Parking Requirements 

Per studio or 1 bedroom Per unit with 2 or more 

Zones Per sinzle-family unit unit bedrooms 

O-S z' NA NA 

PRD See Chapter 17.165 

PUD See Chapter 17.60 

RS-40 2 1 NA NA 

RS-20 i NA NA 

RS-14 2 1 NA NA 

RS-9 2 1 NA NA 

RS-6 2 1 NA NA 

RM-6000 3 1 ,2 NA NA 

RM-4300 2 2 2.25 

RM-2500 2 2 2.25 

RM-2200 2 2 2.25 

RM-1500 2 2 2.25 

RM-HR 2 2 2.25 

1 

2 

Must be provided in an enclosed garage with minimum un-obstructed interior dimensions of 20 ft. by 20 ft. 

Must provide one additional paved space per unit as visitor parking. 

Flag Lots. Flag lots must provide one additional paved parking space, which may not be located in a required front or exterior side yard and may 

not block the driveway leading to the required garage. 

Second Family Units. Second family units in single-family residential zones shall provide one additional paved parking space per bedroom. 

Such spaces may not be located in a required front or exterior side yard and may not block the driveway leading to the required garage for the 

primary dwelling unit. 

Loading spaces for Multi-Family Development. Multi-family developments in the RM-4300 through RM-HR zones shall provide 1 additional 

designated space for temporary loading activities per every 25 units, or fraction thereof 

Board and Care Facilities. Board and care facilities shall provide 2 spaces, plus 1 space for every three beds, or fraction thereof 

SECTION 69. Paragraph (c) of subdivision (2) of subsection (E) of Section 17.190.210 of 

Chapter 17.190 of Title 17 of the EI Cajon Municipal Code is hereby repealed. 



SECTION 70. A new paragraph (c) of subdivision (2) of subsection (E) of Section 

17.190.210 of Chapter 17.190 of Title 17 of the EI Cajon Municipal Code is hereby added to read 

as follows: 

c. Such sign shall be located at least 15 feet to the side of any driveway intersection 

with the public right-of-way, and at least 15 feet to the side of any interior property 

line intersection with the public right-of-way. If such sign is set back at least 10 feet 

and perpendicular from the public right-of-way, the aforementioned 15-foot lateral 

offset will not be required. Such setbacks may be modified if it can be demonstrated 

that safe and proper visibility can be maintained at lesser setbacks. On any corner 

radius, a monument sign shall satisfy the requirements of Section 17.130.090 (Vision 

Clearance of Corner Lots). 



SECTION 72. A new Section 17.195.220 of. Chapter 17.190 of Title 17 of the EI Cajon 


17.195.220 Water District requirements. 

All landscape projects subject to the requirements of this chapter shall comply with the regulations 

and policies of the applicable water district. This includes but is not limited to requirements for: 

water efficient irrigation technology, low water use plants, dedicated irrigation water meters, and 

"smart" or weather-based irrigation controllers. 

SECTION 73. Chapter 17.205 of Title 17 of the EI Cajon Municipal Code is hereby 

repealed in its entirety. 



17.205.010 Purpose. 

Chapter 17.205 

AGRICULTURE AND ANIMALS 

The purpose of this chapter is to list regulations relating to the conduct of agricultural uses and the 

keeping of animals under simplified headings. 



11.205.020 Agricultural land uses permitted. 

Commercial horticulture may be conducted in the O-S, RS-40, and RS-20 zones subject to the 

provisions of this chapter. No other commercial agricultural activities are permitted in any zone. 

Non-commercial agriculture such as private orchards, gardens, and greenhouses shall be 

permitted ancillary to any permitted residential use. Community gardens, as defined in Chapter 

17.110 of this title, are permitted in all residential and commercial zones, subject to the 

requirements of this chapter. 

Agricultural products may be sold at roadside stands in the O-S, RS-40, and RS 20 zones with 

approval of an administrative zoning permit and provided that the product is grown or produced on 

the same property. 

11.205.030 Ordinary household pets. 

The keeping of ordinary household pets shall be permitted in all residential zones, subject to the 

following regulations: 

A. Not more than two (2) adult dogs and two adult cats are permitted for each dwelling, 

together with offspring less than four (4) months of age. 

B. A third adult dog or cat may be authorized for an individual dwelling unit subject to the 

granting of a minor conditional use permit. 

11.205.040 Pot-bellied pigs. 

The keeping of pet pot-bellied pigs shall be permitted, subject to the following regulations: 

A. A maximum of two (2) pot-bellied pigs are permitted on individual lots in the O··S, RS 

40 and RS-20 zones. 

B. A single pot-bellied pig may be kept on an individual lot in the RS-14, RS 9, RS-6, and 

RM-6000 zones, subject to the granting of a minor conditional use permit. The minor 

conditional use permit may also authorize one (1) additional pot bellied pig for 

properties in the RS-14, RS 9, RS-6, and RM-6000 zones with at least 20,000-square 

feet of lot area. 

11.205.050 Domesticated animals other than horses. 

Domesticated animals other than horses may be kept as follows: 

A. A maximum of one (1) domesticated animal, not to exceed 125 pounds at maturity, 

shall be permitted in the 0-8, RS-40 and RS-20 zones. 

B. A maximum of two (2) domesticated animals, not to exceed 125 pounds at maturity, 

and offspring less than six (6) months of age, shall be permitted in the 0 S, RS-40 and 

R8-20 zones, subject to the granting of a minor conditional use permit. 

C. A maximum of one (1) domesticated animal, not to exceed 125 pounds at maturity, 

shall be permitted in the RS-14, RS-9, RS-6, and RM-6000 zones, subject to the 

granting of a minor conditional use permit. 



17.205.060 Rabbits, geese, and ducks. 

The keeping of rabbits, geese, and ducks for private use is permitted in the O-S, RS-40 and RS 20 

zones, not to exceed six (6) adult animals for each main dwelling, together with offspring until 

maturity. 

17.205.065 Chickens. 

The keeping of chickens for private use is permitted in all single-family residential zones and also 

in the RM-6000 zone, subject to the following restrictions and requirements: 

A. Chickens are only permitted accessory to a permitted, detached, single-family 

residential land use. This provision shall include Planned Residential Developments, 

and Planned Unit Developments when all of the other requirements of this section are 

satisfied. 

8. Roosters are prohibited. 

C. Chickens must be kept in a fully enclosed chicken run located in an unpaved area of 

the rear yard, which provides an outdoor area of at least ten square feet per chicken. A 

covered coop is required, which shall be attached to, or located inside of the chicken 

run, and which shall provide at least four square feet per bird, including a nest for each 

of the birds to roost. The coop must protect the animals from predation as well as 

exposure to sun, wind, and rain. Chicken runs shall be constructed of well-ventilated 

and durable wire mesh such as chicken wire or hardware wire. Runs and coops shall 

not exceed a height of eight feet and an area of 150 square feet. 

D. Notwithstanding Subsection C, chickens may be permitted to roam free outside of the 

required chicken run and coop during daylight hours as long as they are confined to a 

completely fenced and unpaved rear yard. The enclosing fence must be at least six feet 

high. Chickens must be returned to the chicken run/chicken coop at sundown. 

E. Chicken runs and coops must be located behind the main house on the lot and at least 

three feet from side and rear property lines. No chicken runs or coops are permitted in 

any exterior yard. 

F. Chicken feed shall be kept in durable rodent-proof containers with tightly fitting covers. 

G. All chicken runs and coops shall be maintained in a clean, sanitary condition, free from 

offensive odors at all times. Evidence of unsanitary conditions includes, but is not 

limited to: numerous flies or fly larvae in the vicinity of the chickens; accumulations of 

chicken litter, refuse, or manure; offensive odors; and rat droppings. 



H. All chicken litter and manure and any material conducive to the breeding of flies, or 

which would create any offensive odor, that is removed from the chicken run or coop, 

shall be placed in sealed compost bins, air-tight containers, or air-tight bags until 

entirely removed from the premises or turned under the soil surface as fertilizer. 

I. All dead chickens shall be removed from the property or buried within twenty-four hours 

of death at a depth of at least three feet underground. Pending disposal or burial, the 

chicken(s) shall be stored in fly-proof, air-tight containers or bags. The illegal disposal 

of dead chickens constitutes a public nuisance pursuant to the provisions of Chapter 

1.16 of the EI Cajon Municipal Code. 

J. The number of chickens at anyone site shall not exceed one bird per each 100 square 

feet of unpaved rear yard area, up to a maximum of 10 chickens. 

17.205.070 Horses. 

Horses may be kept accessory to a permitted residential use as follows: 

A. Horses are prohibited on lots with less than 20,OOO-square feet of net lot area, except 

horses may be kept on sub-lots with at least 10,000-square feet of area in the PRO 

Low-Low zone. 

B. Horses are permitted in the O-S, RS-40, RS-20, and PRO-Low -Low zones, on lots with 

at least 20,000-square feet of net lot area, not to exceed one (1) animal over one (1) 

year of age for each 10,000 square feet of net lot area, and offspring less than one (1) 

year of age. 

C. Horses may be kept in the RS-14, and RS-9 zones, on lots with at least 20,OOO-square 

feet of net lot area, SUbject to the granting of a minor conditional use permit, not to 

exceed one (1) animal over one (1) year of age for each 10,000 square feet of net lot 

area, and offspring less than one (1) year of age. 

O. Horses shall be kept within a fenced enclosure. Such a fenced enclosure may include 

stables, subject to the distance requirements listed in this chapter and the regulations 

for accessory buildings within residential zones. Within the PRO-Low-Low zone, horses 

shall be kept within a designated stable that is at least 50 feet from any structure used 

for assembly, the conduct of business, or human habitation. 

17.205.080 Distance requirements. 

The keeping of animals, other than ordinary household pets, chickens, and pot-bellied pigs, are 

subject to the following minimum distance requirements: 

A. Animals other than ordinary household pets and chickens may not be kept within 50 

feet of any school, church, hospital, place of business, dwelling, mobile home, or 

building constructed or used for human habitation, with the exception that this required 

separation may be reduced to 20 feet in the case of a dwelling on the same lot 

occupied by the owner of the or animals. 



B. Animals other than ordinary household pets and chickens may not be kept within 25 

feet of any common property line shared with an adjacent lot, when the main dwelling 

or building has not been constructed on such adjacent lot. 

17.205.090 Animal related nuisances. 

Animals shall be kept in a manner that prevents offensive odors, flies, dust, noise and other 

nuisances from affecting surrounding properties. 

17.205.100 Prohibited animals. 

The following types of animals are prohibited: 

A. Any animal prohibited by the California Department of Fish and Game. 

B. Cattle. 

C. Ferrets and other members of the weasel family. 

D. Poisonous reptiles. 

E. Roosters. 

F. Swine (other than pot-bellied pigs kept as pets). 

G. Wild animals. 

17.205.105 Community Gardens. 

Community gardens, as defined in Chapter 17.110 are permitted in all residential and commercial 

zones subject to the following standards: 

A. Community gardens are exempt from the requirement for a Landscape Documentation 

Package described in Chapter 17.195. However, community gardens shall employ the 

applicable requirements of Section 17.195.200 (Preventing Water Waste). Additionally, 

all hoses at community gardens shall include trigger nozzles. 

B. Structures used accessory to community gardens shall be considered accessory 

structures for the purpose of applying setback requirements, except that no such 

structures may be located within 20 feet of the public right of way. 

C. Community gardens shall establish and maintain trash collection service from the City's 

solid waste contractor. When not out for collection, the trash and recycling bins may be 

located in a permitted accessory structure or may be stored in a neat and orderly 

manner at a location at least 20 feet from the front property line. 

D. Compost at community gardens shall be covered or kept in covered containers located 

as close to the middle of the property as practicable in order to reduce odors. 

Composted material shall originate on-site or shall be provided by active members of 

the community garden. No other off-site material shall be accepted for composting at 

the community garden. 

E. Community gardens shall be closed from sundown until sunrise. 



F. Community gardens may include unlit monument signs subject to approval of a sign 

permit and the provisions of Chapter 17.190. 

G. Community gardens shall display a sign at the entrance which provides the name and 

phone number of a person responsible for maintaining the garden and responding to 

complaints. 

H. Non-compliance with these regulations constitutes a public nuisance pursuant to the 

provisions of Chapter 1.16 of the EI Cajon Municipal Code. 

17.205.110 Agricultural buildings. 

Accessory structures, used for the housing of animals, shall be located as described in this 

chapter. Greenhouses and agricultural bulidinqs shall be subject to the same location and area 

restrictions applicable to other accessory structures permitted in residential zones. 





17.215.080 location. 

Fueling stations shall be located only in the C-N, C-G, C-R and C-M zones and only at locations 

meeting the following criteria: 

A. Corner sites at the intersection of two (2) dedicated public streets; 

B. Lots which side on a freeway right-of-way; 

C. Shopping centers with an area equal to or greater than two (2) acres. 





17.225.090 Outdoor dining areas. 

Outdoor dining areas are permitted in association with otherwise permitted and legally established 

eating and drinking establishments, subject to the following guidelines and subject to obtaining an 

administrative zoning permit for outdoor dining pursuant to Chapter 17.40. The total area 

dedicated to outdoor dining shall not exceed the area dedicated to indoor dining unless the 

planning commission authorizes a larger area through the granting of a conditional use permit. The 

outdoor dining area shall not be located in the public right-of-way, unless an encroachment permit 

is issued for the outdoor dining area by the department of public works. No additional parking is 

required for the outdoor dining area as long as the area dedicated to outdoor dining is less than 

the area dedicated to indoor dining. 







17.225.190 Off-site outdoor automobile sales. 

Up to ten off-site outdoor sales events for the sale of automobiles, including but not limited to 

passenger vehicles, trucks, motorhornes, recreational vehicles, and motorcycles, may be 

permitted in one calendar year on a qualifying property in the C-R zone, subject to approval of a 

minor conditional use permit processed in accordance with Chapter 17.50 of this title. In no case 

shall a single outdoor sales event last longer than 72 hours. Off-site outdoor automobile sales 

events shall only occur on qualifying properties in the C-R zone that are at least 15 acres in size. 

SECTION 81. The definition of "Zoning ordinance" in Section 17.240.040 of Chapter 

17.240 of Title 17 of the EI Cajon Municipal Code is hereby repealed. 

SECTION 82. A new definition of "Zoning Code" (to be located immediately following the 

definition of 'Tobacco vending machine"), is hereby added to Section 17.240.040 of Chapter 

17.240 of Title 17 of the EI Cajon Municipal Code to read as follows: 

"Zoning Code" means Title 17 of the municipal code of the city of EI Cajon, as it may be 

amended from time to time. 

SECTION 83. Subsection (F) of Section 17.245.050 of Chapter 17.245 of Title 17 of the EI 

Cajon Municipal Code is hereby repealed. 

SECTION 84. A new subsection (F) of Section 17.245.050 of Chapter 17.245 of Title 17 of 

the EI Cajon Municipal Code is hereby added to read as follows: 

F. Provide a copy of any field tests ("drive tests") performed reflecting the strength of 

signals at each of the potential, or alternative sites. Provide signal strength and 

wireless coverage maps depicting the strength of wireless signals in the proposed 

project area. Provide one map depicting existing signal strengths and provide 

another map depicting the signal strength anticipated with operation of the 

proposed facility. 

SECTION 85: This ordinance shall become effective thirty (30) days following its 

passage and adoption. 



PASSED AND ADOPTED by the City Council of the City of EI Cajon, California at a Regular Joint 

City Council/Housing Authority/Successor Agency to the EI Cajon Redevelopment Agency Meeting 

held this 8th day of January, 2013, by the following vote to wit: 

ATTEST: 

AYES 

NOES 

ABSENT 

DISQUALIFY 

CMC, City Clerk 

1/8/13 (Item 14.2) 

Mayor of the City of EI Cajon


B. The proposed amendments to SP 182 are in the public interest because 

they provide flexibility in the range of commercial signs available to 

businesses downtown. This promotes pedestrian activity to enliven the 

downtown core, which also strengthens businesses; and 

C. The proposed amendments to SP 182 will systematically implement the 

City's General Plan and its goals, objectives and policies directing 

downtown development, because using signage oriented to pedestrians 

and strengthening businesses promotes the City's downtown as a place to 

live, work, play, shop and conduct business. 

SECTION 2. Subsection F of section V of Specific Plan No. 182, is hereby repealed. 

SECTION 3. Subsection F of section V of Specific Plan No. 182, is hereby added to 

read as follows: 

F. Sign Permit 

A sign permit is required to install any new commercial sign, except 

allowable window signing, within Specific Plan 182. The City Manager 

may delegate sign design review approval within Specific Plan 182 to a 

downtown PBID management entity, however signs must still comply with 

the other provisions of this Plan and the Municipal Code, including 

obtaining encroachment permits and building permits, when applicable. 

SECTION 4. Subsection H of section VI of Specific Plan No. 182, is hereby repealed. 

SECTION 5. Subsection H of section VI of Specific Plan No. 182, is hereby added to 

read as follows: 

H. Signs and Graphics 

All signs and graphics shall comply with the Signing and Architectural 

Graphics Guidelines adopted in June, 1993, or any subsequent revision 

and the City's sign regulations contained in Chapter 17.190 of the Zoning 

Code whichever is more restrictive and except as follows: 

1. Wall Signs. 

(Continued on page 3)


Except as provided below, building face or building wall signs shall 

be limited to a maximum sign area of two square feet of sign area 

per linear foot of building face or building wall width. 

Building face or building wall signs may be attached to the wall, 

building face or arcade of a building that is constructed on a street 

frontage property line where the sign extension is intended to 

provide interior lighting or a relief effect to the sign. 

The extension of the sign shall not exceed twelve inches beyond 

the wall or face of the building and shall maintain a minimum 

ground or sidewalk clearance of eight feet. 

2. Projecting Signs. 

Projecting signs may project a maximum of twenty-four inches from 

the supporting wall or building face with a maximum sign area of 

ten square feet per face. Projecting signs may not project into the 

public right-of-way. Projecting signs shall maintain a minimum 

ground or sidewalk clearance of eight feet. A projecting sign shall 

not exceed the height of the building wall to which it is attached. 

Projecting signs are included in the calculation of the maximum 

allowable wall signs. 

3. Suspended Signs. 

Suspended signs under an arcade shall be limited to one in front of 

each entrance to the building, shall be no wider than sixty percent 

of the width of the arcade with a maximum sign area of six square 

feet per face and shall maintain a minimum ground or sidewalk 

clearance of eight feet. Signs suspended perpendicular to the 

building entrance shall not be included in the calculation of the 

maximum cumulative wall sign area. Signs suspended parallel to 

the street shall be included in the calculation of the maximum 

cumulative wall sign area. 

4. Freestanding Signs. 

Freestanding signs shall be limited to monument signs with one 

monument sign permitted for each street frontage of each 

commercial development or individual commercial use. The 

maximum height of a monument sign is eight feet and the 

maximum sign area is one hundred twenty (120) square feet per 

face. 



Unless a monument sign is set back at least ten feet perpendicular 

from the public right-of-way, it shall be located at least fifteen feet to 

the side of any driveway or interior property line to assure visibility. 

On any corner radius, a monument sign shall be set back from the 

public right-of-way unless it is demonstrated that safe and proper 

visibility can be maintained at a lesser setback. 

5. Window Signs. 

Window signs shall be limited to fifteen percent of the total business 

window sign area. Window signing shall not be included in the 

calculation of the maximum cumulative wall sign area. 

6. Portable Signs. 

One portable sign on a sign stand or sandwich board (A-frame) 

sign is allowed for each conforming ground floor retail, restaurant, 

and personal service use (e.g., hair salons, barber shops, nail 

salon). Maximum sign/structure dimensions shall be 20-inches wide 

and 42-inches high. 

Signs may be placed on public sidewalk, subject to issuance of an 

encroachment permit by the City Public Works Department. Sign 

placement must conform to ADA requirements at all times. 

Portable signs placed over a public sidewalk may only identify the 

business name, products, and services of the adjacent 

establishment for which the license is granted. They may not 

include political or any other unrelated messages. Tobacco and 

similar products regulated pursuant to Chapter 8.33 may not be 

included on signs located on the public sidewalk. A brand logo for 

the downtown adopted by the PBID or City may be included on the 

sign panel. 

7. Signs on outdoor dining fences. 

One sign panel measuring a maximum of eight square feet in size 

and a maximum of % inch in thickness may be affixed to an 

approved outdoor dining fence when the outdoor dining area for an 

adjacent restaurant is less than 60 feet in width. Up to two sign 

panels may be affixed to an outdoor dining fence, when the outdoor 

dining area for an adjacent restaurant is 60 feet or more in width. 

Sight lines may not be obstructed, as determined by the City 

Engineer. 



Sign panels on an approved outdoor dining fence shall not be 

included in the maximum allowable wall signs noted above. 

Sign panels shall be flush mounted and made of rigid and durable 

materials such as metal, wood, or hard plastic. Sign panels shall 

be professionally printed, not hand-painted and mounted with 

discreet or artistic hardware. 

Sign panels may encroach over the public sidewalk or Prescott 

Promenade, subject to issuance of an encroachment permit by the 

City Public Works Department. 

Sign panels over a public sidewalk or Prescott Promenade may 

only identify the restaurant name, products and events of the 

restaurant holding the license to the outdoor dining area. They may 

not include political or any other unrelated messages. Tobacco and 

similar products regulated pursuant to Chapter 8.33 may not be 

included on signs located on the public sidewalk or Prescott 

Promenade. A brand logo for the downtown adopted by the PBID 

or City may be included on the sign panel. 

8. Menu Boards/Cases. 

Wall mounted restaurant menu boards/cases measuring four 

square feet or less shall not be included in the maximum square 

footage allowable for wall signs. Menu Board/cases shall be a 

maximum of three inches thick. Internal, non-animated illumination 

is permitted. 

9. Animated Signs. 

Animated window signs shall be limited to five percent of the 

ground floor window area, up to a maximum of four square feet and 

40 linear feet per business establishment, whichever is less. 

Animated signs shall be included in the 15 percent maximum 

window area signage allowance. 

10.No box or can signs, internally illuminated or not, shall be permitted 

within the boundaries of Specific Plan 182. 

11.AII new signs shall be reviewed in accordance with Section V.F. 



SECTION 6. The text in the subsection titled "Signs" of Exhibit "C" of Specific Plan No. 

182 (Design Guidelines For Building Facade Renovation and New Building) is hereby 

repealed. 

SECTION 7. New text and images shall be added to the subsection titled "Signs" of 

Exhibit "C" of Specific Plan No. 182 (Design Guidelines For Building Facade Renovation 

and New Building) to read as follows: 

SIGNS 

The following items are general signage criteria and standards. 

1. Signage must comply with City sign ordinances and SP 182. Exceptions 

for historical signs are encouraged and may require a variance granted by 

the City of EI Cajon. The Planning Commission may approve exceptions 

upon receipt of documentary evidence that signs of such size, shape, 

design, material, coloring, lighting, and location to advertise a similar 

business were in use before 1960. 

2. Preservation of historic commercial graphics painted on the sides of 

buildings is encouraged. See Guidelines for Murals and Public Art. 

3. When all provisions and conditions stated in earlier design, color, fabric, 

and materials requirements are met, neon, flashing, moving, or animated 

signs will be considered as long as they meet the historical integrity of the 

era but will not necessarily be approved. 

4. Signs affixed to inside or outside facade display windows shall not 

obscure the interior of the building or the contents of display merchandise. 

5. A-frame signs shall be attractively designed to enhance the pedestrian 

experience and minimize tripping hazards. The base of the a-frame sign 

shall not project beyond the sign plane itself. 



Examples of attractive, safe A-frame signs. 

Examples of unattractive, utilitarian A-frame signs. 

Examples of unsafe A-frame signs.


SECTION 8. This ordinance shall become effective thirty (30) days following its 

passage and adoption. 

1/8/13 (Item 14.2) 

AM SP 182 Ordinance (final) 

1st Reading 12/11/12 

2 nd Reading 1/8/13

In order for Council to approve the proposed specific plan amendment, the Council must 

make the following findings: 

A. Approval of the proposed amendment to SP No. 106 serves the public interest. 

B. The proposed amendment to SP No. 106 will systematically implement the city's 

General Plan. 

C. The proposed amendment to SP No. 106 will not result in a parking problem on 

adjacent properties or public streets. 

D. The proposed amendment to SP No. 106 shall be age and disability restricted for the 

life of the project. 

In recommending approval of the amendment, the Planning Commission found that the 

proposed amendment serves the public interest because it would provide seven new housing 

units designated for the elderly in proximity to public transportation and community services. 

The new age-restricted dwellings units will be located approximately 1,000 feet from an 

existing bus stop, and the Cajon Valley Middle School Park is approximately 2,000 feet away. 

There will be adequate amenities provided at the site, if private laundry facilities are 

provided for future residents. The on-site market and nearby restaurants will provide 

additional shopping conveniences for future tenants. 

The Commission found that the proposed specific plan amendment is consistent with, and will 

implement, the General Plan and General Plan policies relatedto the removal of government 

constraints to housing, providing a wide range of housing types, and providing age-restricted 

housing in close proximity to public transportation and recreational facilities. The proposal is 

also consistent with the intent and purpose of a specific plan, which is a plan for a particular 

portion ofthe City where circumstances require a more detailed plan of development than the 

general plan, and/or more detailed standards than the general provisions of the zoning 

ordinance. 

The Commission found that this proposal would satisfy the applicable development standards 

ofthe CoG (General Commercial) zone, including the number of required parking spaces. The 

proposed project will not result in a parking problem on adjacent properties or public streets. 

The subject site has 12 extra parking spaces and access to 12 additional joint-use parking 

spaces at the motel property to the west. These 24 additional parking spaces will be able to 

accommodate visitors at the subject site. 

Finally, Planning Commission Resolution No. 10704 includes a condition recommending that 

the apartments at the subject property remain age-restricted for the life of the project. That 

condition enabled the Commission to make Finding D, above, and is included in the attached 

City Council resolution. 

CEQA: The proposed project is exempt from the California Environmental Quality Act 

(CEQA) under Section 15303, Class 3 (New Construction or Conversion of Small Structures) 

ofCEQA Guidelines. Class 3 provides an exemption for the conversion of smail structures ill

ORDINANCE NO. 

AN ORDINANCE AMENDING SPECIFIC PLAN NO.1 06 TO ADD SEVEN 

ADDITIONAL AGE-RESTRICTED RESIDENTIAL APARTMENTS TO AN 

EXISTING MIXED-USE DEVELOPMENT 

WHEREAS, the Planning Commission held a duly advertised public hearing on 

December 10, 2012, on this item and then adopted Resolution NO.10704 recommending 

City Council approval of Amendment to Specific Plan NO.106to add seven additional agerestricted 

residential apartments to an existing mixed-use development; and 

WHEREAS, the City Council held a duly advertised public hearing on January 8, 

2013 to consider the proposed Amendment of Specific Plan NO.1 06; and 

WHEREAS, the applicant has complied with all recommended pre-ordinance 

conditions of approval set-forth in Planning Commission Resolution NO.10704 and the site 

plan pertaining to Specific Plan No. 106 has been received by the City; and 

WHEREAS, the proposed project is exempt from environmental review in 

accordance with Section 15303 of the CEQA Guidelines (New Construction or Conversion 

of Small Structures). Class 3 provides an exemption for the conversion of small structures 

in urban environments from one use to another. The proposed modifications to the site will 

result in the conversion of existing vacant commercial space to create seven new dwelling 

units. None of the exceptions listed in Section 15300.2 of the CEQA Guidelines exist. 

The City Council of the City of EI Cajon does ordain as follows: 

SECTION 1. Based upon the record as a whole, the City Council hereby makes the 

following findings: 

A. The proposed specific plan amendment will serve the public interest by providing 

seven new housing units designated for the elderly in close proximity to public 

transportation and community services, if private laundry facilities are provided in 

each new unit and if the housing units are age-restricted; and 

B. The proposed specific plan amendment will systematically implement the General 

Plan because it will remove government constraints to housing, assist in the 

provision or a wide range of housing types, and provide age-restricted housing in 

close proximity to public transportation and recreational facilities; and 

C. The proposed specific plan amendment will not result in a parking problem on 

adjacent properties or public streets because there is sufficient existing parking at 

the project site, and occupancy of the proposed residential units would be restricted 

to senior citizens; and

D. A reduction in the amount of required parking at this project is warranted because 

the proposed residential units will remain age-restricted for the life of the project; 

and 

E. The fuel truck circulation pattern is depicted on the project site plan and reduces 

vehicular conflicts. 

SECTION 2. The City Council hereby approves this Amendment of Specific Plan NO.1 06 

to add seven additional age-restricted residential apartments to an existing mixed-use 

development, as presented in "Exhibit I" of Specific Plan NO.106 on file in the Community 

Development Department and incorporated herein by reference, subject to the following 

conditions: 

1. In addition to complying with the notes and site configuration of the revised SP No. 

106 site plan, and prior to occupancy of the proposed new residential units, the following 

conditions shall be satisfied: 

a. The applicant shall comply with all the conditions listed in the "Standard 

Conditions of Development" adopted by the Planning Commission by 

Planning Commission Resolution NO.1 0649 and labeled "Exhibit A" of 

Planning Commission Resolution NO.1 0704, as applicable. 

b. The applicant shall comply with the requirements of the Public Works 

Dept. as noted in the attached memo labeled "Exhibit B" of Planning 

Commission Resolution No. 10704, dated 06-20-12. 

c. The applicant shall comply with the building requirements of the Building 

& Fire Safety Division as noted in the attached memo labeled "Exhibit C" 

of Planning Commission Resolution No. 10704, dated 06-05-12. 

d. The applicant shall comply with the fire safety requirements of the 

Building & Fire Safety Division as noted in the attached memo labeled 

"Exhibit 0" of Planning Commission Resolution NO.1 0704, dated 06-05 

12. 

e. The applicant shall comply with the requirements of the Helix Water 

District as noted in the attached letter labeled "Exhibit E" of Planning 

Commission Resolution NO.1 0704, dated 06-11-12. 

2. The following are ongoing conditions of approval for SP NO.1 06, which shall be 

noted on the revised SP NO.1 06 site plan under the heading of "Planning Requirements," 

and which shall be satisfied at all times during the life of the specific plan. 

a. The SP NO.1 06 site plan shall be consistent with the approved site plan 

for CUP No. 1805. Any subsequent changes that are made to the CUP 

No. 1805 site plan shall be reflected on the SP NO.1 06 site plan and may 

require a formal amendment of SP NO.1 06. 

b. The 17 age-restricted residential units at this development shall only be 

made available to senior citizens. The head of the household, or their 

spouse, must be age 62 or older. "Age-restricted" shall be as defined by 

the US Department of Housing and Urban Development. 

Page 2 of 3

c. Private laundry facilities shall be provided and maintained in each of the 

17 aqe-restricted residential units at this development. 

3. If any and all conditions for this specific plan amendment have not been satisfied, or 

the specific plan amendment has not become effective, and if no request for an extension 

of time has been received within one year of this approval this specific plan shall be 

considered null and void per El Cajon Zoning Ordinance Section 17.35.010(C). 

4. The physical layout of the project site, including the shared parking areas, and the 

interconnecting drive aisles between lots shall be maintained as indicated on the attached 

Specific Plan NO.1 06, Exhibit I, except as modified by this Ordinance. 

SECTION 3. After the effective date of this ordinance all uses, and all new or remodeled 

buildings, structures, or other improvements, shall be in conformance with, and in 

accordance with, Specific Plan NO.1 06, as amended. 

SECTION 4. This ordinance shall become effective thirty (30) days following its passage 

and adoption. 


PLANNING COMMISSION RESOLUTION NO.1 0704 

A RESOLUTION RECOMMENDING CITY COUNCIL APPROVAL 

OF AN AMENDMENT TO SPECIFIC PLAN NO. 106 TO ADD 

SEVEN ADDITIONAL AGE-RESTRICTED RESIDENTIAL 

APARTMENTS TO AN EXISTING MIXED-USE DEVELOPMENT 

IN THE C-G (GENERAL COMMERCIAL) ZONE. APN: 483-380-41; 

GENERAL PLAN DESIGNATION: GENERAL COMMERCIAL 

(GC). 

WHEREAS, the EI Cajon Planning Commission duly advertised and held a 

continued public hearing on December 10, 2012, to consider an Amendment of 

Specific Plan No.1 06, as submitted by Quick Trip, Inc, requesting to add seven 

additional age-restricted (senior) residential apartments to an existing mixed-use 

development in the C-G (General Commercial) zone, on property located on the 

west side of North Mollision Avenue between Interstate 8 and West Madison 

Avenue and addressed as 596 North Mollison Avenue; and 

WHEREAS, the following findings of fact are hereby made in regard to 

said specific plan: 

A. The proposed project is exempt from the California Environmental Quality 

Act (CEQA) Linder Section 15303, Class 3 (New Construction or 

Conversion of Small Structures) of CEQA Guidelines. Class 3 provides an 

exemption for the conversion of small structures in urban environments 

from one use to another. The proposed modifications to the site will result 

in the conversion of existing vacant commercial space to create seven 

new dwelling units. None of the exceptions listed in Section 15300.2 of the 

CEQA Guidelines exist. 

B. The proposed specific plan amendment will serve the public interest by 

providing seven new housing units designated for the elderly in close 

proximity to public transportation and community services, if private 

laundry facilities are provided in each new unit and if the housing units are 

age-restricted. 

C. The proposed specific plan amendment will systematically implement the 

General Plan because it will remove government constraints to housing, 

assist in the provision or a wide range of housing types, and provide agerestricted 

housing in close proximity to public transportation and 

recreational facilities. 

D. The proposed specific plan amendment will not result in a parking problem 

on adjacent properties or public streets because there is sufficient existing 

parking at the project site, and occupancy of the proposed residential units 

would be restricted to senior citizens. 

AM SP 106 

Attachment 2 

PC Resolution No. 10704

P.C. Resolution No. 10704 

E. A reduction in the amount of required parking at this project is warranted 

because the proposed residential units will remain age-restricted for the 

Iife of the project. 

F. The fuel truck circulation pattern is depicted on the project site plan and 

reduces vehicular conflicts. 

NOW, THEREFORE, BE IT RESOLVED that based upon said findings of 

fact, the El Cajon City Planning Commission hereby RECOMMENDS CITY 

COUNCIL APPROVAL of an Amendment of Specific Plan No. 106 to add seven 

additional age-restricted residential apartments to an existing mixed-use 

development in the C-G zone, subject to the following conditions: 

1. Prior to the first reading of an ordinance amending SP No. 106, the 

applicant shall submit a revised one-page site plan (24" by 36") to the 

Planning Division that reflects the conditions of approval and the following 

specific notes and changes: 

a. Remove the existing storm water management notes and replace 

them with the notes required under section A-1 of the attached 

comments from the Public Works Department. Place the notes 

under the heading of "Storm Water Requirements". 

b. Under the heading "Ongoing Conditions of Approval" List the 

ongoing conditions of approval required below in Condition No 3. 

c. Remove the notes and the dashed line which indicates reciprocal 

access along the south and west side of the hotel property. 

2. In addition to complying with the notes and site configuration of the 

revised SP NO.106 site plan, and prior to occupancy of the proposed new 

residential units, the following conditions shall be satisfied: 

a. The applicant shall comply with all the conditions listed in the 

"Standard Conditions of Development" adopted by the Planning 

Commission by Planning Commission Resolution No. 10649 and 

labeled "Exhibit A" as applicable. 

b. The applicant shall comply with the requirements of the Public 

Works Dept.· as noted in the attached memo labeled "Exhibit B" 

dated 06-20-12. 

c. The applicant shall comply with the building requirements of the 

Building & Fire Safety Division as noted in the attached memo 

labeled "Exhibit C" dated 06-05-12. 



labeled "Exhibit D" dated 06-05-12. 


District as noted in the attached letter labeled "Exhibit E" dated 

06-11-12. 


P.C. Resolution No. "j0704 

3. The following are ongoing conditions of approval for SP No. 106, which 

shall be noted on the revised SP No. 106 site plan under the heading of 

"Planning Requirements," and which shall be satisfied at all times during 

the life of the specific plan. 

a. The SP No. 106 site plan shall be consistent with the approved site 

plan for CUP No. 1805. Any subsequent changes that are made to 

the CUP No. 1805 site plan shall be reflected on the SP No. 106 

site plan and may require a formal amendment of SP No.1 06. 

b. The 17 age-restricted residential units at this development shall 

only be made available to senior citizens. The head of the 

household, or their spouse, must be age 62 or older. "Agerestricted" 

shall be as defined by the US Department of Housing 

and Urban Development. 

c. Private laundry facilities shall be provided and maintained in each 

of the 17 age-restricted residential units at this development. 

4. If any and all preconditions for this specific plan amendment have not 

been satisfied, or the specific plan amendment has not become effective, 

and if no request for an extension of time has been received within one 

year of this approval this specific plan shall be considered null and void 

per EI Cajon Zoning Ordinance Section 17.35.010(C). 

5. The physical layout of the project site, including the shared parking areas, 

and the interconnecting drive aisles between lots shall be maintained as 

indicated on the plans reviewed by the Planning Commission on 

December 10, 2012, except as modified by this resolution or the approving 


6. Pursuant to El Cajon Municipal Code, Section 17.70.080, after adoption of 

Specific Plan No.1 06, no building, structure or other improvement shall be 

located, erected or constructed within the area covered by such specific 

plan, and no use shall take place thereon, except as shown on the specific 

plan or an approved amendment thereof. 

{The remainder of this page intentionally left blank} 



PASSED AND ADOPTED by the El Cajon Planning Commission at a regular 

meeting held December 10, 2012, by the following vote: 

ATTEST: 

AYES: 

NOES: 

ABSENT: 

BALES, CiRCa, DANKHA, MROZ, SOTTILE 

NONE 

NONE 

Page 4 of 4 

DEC 1 {}

5. All development projects shall comply with Title 12(Streets and Sidewalks), and Title 13 

(Water, Sewers, Grading, Erosion and Stormwater) of the £1 Cajon Municipal Code as 

determined by the City Engineer. 

6. All retaining walls visible from public right-of-ways shall include decorative elements, 

subject to approval by the Planning Division. 

7. The design of any masonry soundwal\ shall be approved by the Planning Division. Such 

walls shall match or be architecturally compatible with existing soundwalls of 

neighboring projects along that street. All masonry walls shall have a trim cap. 

C. ARCHITECTURE 

1. All exterior materials and colors used in this project shall be in conformance with the 

materials and color samples approved as a part of this application. 

2. All mechanical, and/or roof mounted equipment shall be architecturally screened from 

public view. 

3. All trash/recycling enclosures shall be constructed of masonry material with viewobscuring 

doors. The enclosure shall include materials and colors consistent with the 

primary building and meet appropriate Stormwater Division requirements. Required 

roofs shall match elements of the primary building and shall include a fascia trim. 

4. All vents, gutters, downspouts, flashing, electrical conduits, etc., shall be painted or 

finished to match the color of the adjacent surface/ unless otherwise directed by the 

Planning Commission. 

5. Soffits and other architectural elements visible from view but. not detailed on the plans 

shall be finished in a manner that is architecturally compatible with the exterior of the 

building. 

6. Finish quality of approved exterior design elements shall be subject to approval of the 

Planning Division prior to issuance of Certificate of Occupancy. 

7. Any decorative elements around the base of a building (stone veneer or tile, etc.) shall 

be finished with a decorative cap or trim piece. 

D. LANDSCAPING 

1. Specific landscaping for screening shall have an appearance of mature growth subject to 

a field check and approval by the Planning Division prior to the issuance of a Certificate 

of Occupancy. 

2. All existing trees to remain shall be shown on the grading plan.

3. 

4. 

5. 

E. MISCELLANEOUS 

The area under the drip line of all existing trees that are to remain shall be protected 

during construction C'! a fence or other acceptable means. Grading shall be restricted 

under the trees to prevent soil compaction and to orevent root damage. 

All sloped banks greater than three (3) feet in vertical height and 2:1 or greater slope 

shall be landscaped and irrigated for erosion control and to soften their appearance as 

follows: deep-rooting grasses, ground cover and shrubs. Shrubbery shall be a minimum 

one-gallon size and shall have a minimum separation of one (l) times the mature width 

and on slopes of 10 feet or more in vertical height shall include, a minimum of one (1) 

tree for every 600 square feet of the total slope area. Trees shall be a minimum fivegallon 

size and shall be spaced a minimum of 30 feet apart. Trees and shrubs shall be 

planted in staggered clusters to soften and vary theslope plane. Slope planting required 

by this condition shall include a permanent irrigation system to be installed by the 

developer prior to occupancy. 

All landscaping shall be maintained in good growing condition. Such maintenance shall 

include, where appropriate, pruning, mowing, weeding, cleaning of debris and trash, 

fertilizing and regular watering. Whenever necessary, dead or dying plants shall be 

replaced with other plant materials to ensure continued compliance with applicable 

landscaping requirements. Required irrigation systems shall be fully maintained in 

sound operating condition with heads periodically cleaned and replaced when missing 

to ensure continued regular watering of landscape areas, and health and vitality of 

landscape materials. 

1. Final occupancy shall not be granted until all construction and landscaping is complete 

in accordance with all approved plans. Under certain circumstances, a temporary 

occupancy may be granted prior to final inspection. 

2. It is the responsibility of the applicant or developer to check with each agency for 

requirements that may pertain to their project. 

3. All signs shall be submitted to the Planning Division for review and approval per Section 

17.190.060 of the El Cajon Municipal Code. 

4. The site shall be maintained in a neat and clean mannerfree of trash and debris. 

5. Certain outdoor equipment, such as satellite dishes and back-flow prevention devices 

shall be visually screened or painted to match surroundings upon installation subjectto 

the approval of the Planning Division. Screening devices shall be shown on construction 

and/or landscape plans. 

6. All exterior light fixtures shall be shown on a lighting plan and made part of construction 

drawings subject to staff review and approval. All lights attached to buildings shall 

provide a soft "wash" of light against the wall. All building, parking, and yard lights shall 

conform to the City General Development Standards 17.130.150 and Performance 

Standards 17.115.130 (G) and shall complementthesite and building architecture.

7. The removal of trees shall not take place during the bird-nesting (breeding) season 

(February 1 through August 15), unless written authorization from a qualified biologist 

to proceed with tree removal is submitted to. the Planning Division. ·If clearing is 

proposed to take place during the breeding season, a survey shall be conducted by the 

qualified biologist to determine if nests. are present, or nest building or other 

breeding/nesting behavior is occurring. If nestingisnot occurring (which includes nest 

building or other breeding/nesting behavior)v\/[thinthis area,c1earing shall be allowed 

to proceed. If nesting is occurring (or breeding/nesting behavior is occurring),tree 

removal shall be postponed until a qualified biologist determines that all nesting (or 

breeding/nesting behavior) has ceased or until afterAugust15. . 

8. The placement of bollards within parking areas and driveways shall only be permitted 

when no other alternative design (curbs or landscaping) is feasible and accepted by the 

BUilding Official.

"'1. Please be advised. MIxing of occupancies can be e:

Planning Commission Staff Report 

Amendment to Specific Plan 106 

December 10, 2012 Agenda 

Specific Plan (SP) No.1 06 was originally approved in 1971 for the development of the 

subject property and a motel on a landlocked parcel to the west of the subject property. SP 

No. 106 provides joint access via a shared driveway for the two properties. It also requires 

that 12 of the existing parking spaces on the adjacent hotel property be shared between 

the two properties. In 2010, the City Council approved an amendment to SP No.1 06 which 

authorized the conversion of commercial office suites to 10 age-restricted residential 

apartments on the second floor of the building on the subject property. The approved 

residential units are restricted to senior citizens, age 62, or older. 

In addition to SP NO.1 06, which provides interconnecting access and joint-use parking, 

Conditional Use Permit (CUP) No. 1805 authorizes the conduct of an automotive fueling 

station and a car wash at the subject property. CUP No. 1805 originally approved an 

.automated car wash. However, in 2009 the Planning Commission approved an amendment 

authorizing the conduct of a full service car wash with a pre-wash area east of the car wash 

entrance, and a drying area west of the car wash exit door. The detailing of automobiles 

was also approved to be conducted inside the existing building where the applicant now 

proposes establish residential apartment units. Relevant operational conditions of approval 

for CUP No. 1805 include the following: 

G The car wash shall be operated in a manner that is compatible with surrounding 

properties and uses. 

G Approved hours of operation are from 8:00 AM to 8:00 PM. 

@ Automotive detailing may not be conducted outdoors. 

e Auto repair is prohibited. 

e No outdoor storage of equipment or supplies. 

@ Compliance with sign regulations. 

The CUP No. 1805 site plan includes a graphic depicting the approved circulation pattern 

for trucks making fuel deliveries to the site. In response to direction from the Planning 

Commission, the applicant has added that graphic to the proposed project site plan for this 

amendment of SP NO.106. The graphic indicates that fueling trucks enter from the shared 

driveway on North Mollision Avenue, then turn north to access the underground fuel tanks 

on the west side of the subject property. After transferring fuel, drivers are supposed to 

back the trucks along the same path to a point where they can turn south and exit the site 

via a driveway located on the property to the south at 584 North Mollison Avenue. There is 

a separate specific plan requiring interconnecting vehicular access between that property, 

the subject property, and the adjacent motel property. The applicant has also informed staff 

that an agreement was reached between himself and the operator of the motel regarding 

the use of the freeway-oriented pole sign at the subject property. 

PROJECT DESCRIPTION 

Existing Conditions: The subject property is an odd-shaped lot with 100 feet of frontage on 

North Mollison Avenue, a lot depth of 335 feet, and a net lot area of 0.82 acres. The




property is developed with an automotive fueling station that includes an 11,118 sq. ft., 

two-story commercial buildinq, with a 1,890 sq. ft. convenience store and vacant tenant 

suites on the first floor. The second floor consists of ten, one-bedroom, age-restricted 

apartment units, and a three-bedroom caretaker's unit. There is a large canopy attached 

to the south side of the building, which covers a fueling island and a detached car wash 

building. 

North of the subject site is Interstate 8. South of the subject site there is a drive-through 

restaurant zoned C-G. To the east, across Mollison Avenue, there is a service station, 

liquor store and motel, also zoned C-G. West of the subject property there is a 73-unit 

motel that is located within the C-G zone. A bus stop is located approximately 1,000 ft. 

south of the subject site at the corner of East Madison and North Mollison Avenues. 

Project Proposal: The applicant proposes to convert the vacant ground floor suites of the 

commercial building in order to provide seven additional, one-bedroom, age-restricted 

apartment units. Submitted plans provide for laundry facilities under the landings in the 

stairwells at the east and west ends of the existing building to serve the new units, but the 

applicant has indicated a willingness to incorporate laundry facilities in each new unit, 

consistent with the existing, approved senior apartments. 

GENERAL PLAN I CODE COMPLIANCE 

General Plan: The proposed project is consistent with and will implement the General Plan. 

The General Plan designation for the subject site is GC. The GC designation is located 

along major thoroughfares in the City and is intended for general shopping or service uses 

not typically found in shopping centers. These commercial developments consist of either 

individual lots or "strip" commercial areas. 

The residential uses proposed by this specific plan amendment are compatible with 

General Plan Goal 5. Goal 5 states that, "A broad range of housing types will be made 

available to meet the housing needs of various age and income groups." A subordinate 

objective of Goal 5 is Objective 5-4, which is to, "remove governmental constraints on 

housing development." Policy 5-4.1, which also supports the City's goal to provide a broad 

range of housing types states that, "The City will continue to allow second units, 

condominium conversions, and residential units in office/commercial zones as specified in 

the City's Zoning Ordinance." 

General Plan Policy 5-2.5 states "the City will encourage the development of new housing 

units designated for the elderly and disabled persons to be in close proximity to public 

transportation and community services." The new age-restricted dwellings units will be 

located in close proximity (1,000 ft.) to an existing bus stop and the Cajon Valley Middle 

School Park (2,000 ft.). 

-3-




Objective 8-4 of the General Plan states that the City should, "Encourage future land use 

planning and development which take into consideration the effects of noise upon the 

environment." The effects of noise on the proposed residential units should therefore be 

taken into consideration due to the proximity of the freeway. A noise reading was taken on 

the subject site and the interior noise level was measured at less than 40 decibels. The 

California Building Code's Noise Insulation standards require that the interior noise levels 

attributable to exterior sources not exceed 45 decibels within new apartments. 

Policy 8-4.1 states that, "In future land use planning, the placement of noise sensitive land 

uses in existing or projected noise impact areas shall be considered if additional noiseattenuating 

measures or plans are adopted ... " The placement of residential units can be 

considered at the subject site because the existing structure provides sufficient noise 

attenuation. 

Zoning: The regulations for specific plans are contained in Chapter 17.70 of the Zoning 

Ordinance. As indicated therein, a specific plan is a plan for a particular portion of the City 

where circumstances require a more detailed plan of development than the general plan, 

and/or more detailed standards than the general provisions of the zoning ordinance. The 

City has utilized the specific plan process in the past to allow mixed-use developments on 

commercially-zoned properties. 

Scope of Plans: Section 17.70.050 lists the potential scope of specific plans in EI Cajon. 

Section 17.70.050(B) states that specific plans may include: "Regulations of the use of land 

and buildings, the height and bulk of buildings and the open space around buildings". In 

2010, the City Council decided that this provision could be used to convert the top floor of 

the existing building at the subject property in order to create 10 age-restricted apartment 

units. This proposed amendment would be an expansion of that project by converting 

additional space located on the ground floor of the building to create seven more 

apartment units. 

Bulk Development Standards: The project does not involve new construction, so there 

would be no change to the building height and no increase in the area of the structure. 

Parking: The parking requirement for automotive fueling stations and their associated 

convenience markets are contained in Chapter 17.215. The requirement is one parking 

space for each pump island at the station, and one parking space per each 250 square feet 

of convenience market floor space. The caretaker's unit at the site requires two parking 

spaces. 

Section 17.140.200 allows a reduction in off-street parking requirements for age- and 

disability-restricted housing projects. Age- and disability-restricted housing may be granted 

a reduction in off-street parking requirements if the reduction does not result in a ratio less 

than one parking space for each two dwelling units, provided that findings can be made 

that the proposed housing project: 1. Will not result in a parking problem on adjacent 

A 

--r-




properties or public streets; and 2. Shall be age and disability restricted for the life of the 

project." 

The number of required parking spaces at the subject site would be 19 spaces, if the 

Council makes the required findings to approve reduced parking for the proposed aqerestricted 

units. The proposed site plan indicates 29 on-site parking spaces. The applicant 

also has access to 12 spaces on the motel property to the east. Therefore, the subject site 

provides sufficient off-street parking. The following table summarizes the parking 

requirements for the various components of the project: 

1,890 sq. ft. Convenience Market 

Fuelin Island 

17 Senior Housin Units 

Caretaker A artment 

Total: 

7.5 spaces 

The applicant says that the tenants in four of the 10 existing apartment units have cars, 

while the tenants in the other six units do not. 

Common Areas and Recreational Amenities: The Zoning Ordinance does not specify any 

open space or recreation area requirements for specific plans. Nor does it require any 

exterior yards or recreational amenities for dwelling units constructed as caretaker units at 

commercial sites. The Council did not require any recreational amenities or other common 

areas when it approved the conversion of the second story to age-restricted residential 

units in 2010, and none are proposed with this amendment request. 

Laundry Facilities: The Council required private laundry facilities for each new residential 

unit when it approved the conversion of the second floor units in 2010. The applicant's 

current proposal does not include washers and dryers inside the new units. Instead, the 

applicant has shown laundry facilities under the landings, on the first floor of the stairwells 

on the east and west ends of the building. In anticipation of the requirement for laundry 

facilities within the units, the applicant's floor plan shows a closet in each unit that could 

accommodate a stacked washer/dryer unit. 

The existing stairwells do not provide sufficient space, and are not designed to 

accommodate laundry facilities. Placing laundry facilities inthe stairwells would very likely 

lead to frequent obstruction of the stairwells and could even create unsafe conditions if 

hampers and laundry basketsare left on landings and stairtreads. Therefore, the proposed 

resolution attached to this report recommends that laundry facilities be required inside each 

new residential unit at the project, rather than in the stairwells. The addition of private 

laundry facilities will ensure that senior tenants have a safe and convenient location to 

wash their clothing and linens.




Design Guidelines: Chapter 17.180 of the Zoning Ordinance provides some basic 

guidelines for architecture. Among other things, the guidelines encourage doorways and 

other buildinq elements to be proportional and have a good relationship with each other 

and to wall areas. The proposed modifications to the existing building are very minor and 

include the addition of windows and doors for the proposed dwelling units, which are 

proportional and consistent with the doors and windows of the existing units on the second 

floor. 

Air Quality Study: In 2010, the applicant submitted an air quality study that evaluated air 

quality on the second floor of the existing building. The study indicated that the air quality 

inside the second floor of the building is within acceptable standards for residential 

exposure. The applicant submitted an addendum to the 2010 air quality study with the 

current proposal. The addendum addresses air quality on the first floor of the building and 

it states that the original air quality analysis can be relied upon for the first floor as well as 

the second floor of the building. 

Required Findings: In order for the Commission to recommend City Council approval of 

the proposed Specific Plan Amendment, the Commission must be able to make the 

following findings: 

A. Approval of the proposed amendment to Specific Plan 106 serves the public 

interest. 

B. . The proposed amendment to Specific Plan 106 will systematically implement the 

city's General Plan. 

C. The proposed amendment to Specific Plan 106 will not result in a parking problem 

on adjacent properties or public streets. 

D. The proposed amendment to Specific Plan 106 shall be age and disability restricted 

for the life of the project. 

CEQA: The proposed project is exempt from the California Environmental Quality Act 

(CEQA) under Section 15303, Class 3 (New Construction or Conversion of Small 

Structures) of CEQA Guidelines. Class 3 provides an exemption for the conversion of 

small structures in urban environments from one use to another. The proposed 

modifications to the site will result in the conversion of existing vacant commercial space to 

create seven new dwelling units. None of the exceptions listed in Section 15300.2 of the 


Noticing Requirements: Notice of this continued public hearing was published in the East 

County Gazette on November 29, 2012, and was mailed to all property owners within 300 

feet of the project site, and to anyone who requested such notice in writing, in compliance 

with Government Code Sections 65090, 65091, and 65092, as applicable. Additionally, as 

a 

-v-




a public service, the notice was posted in the kiosk at City Hall and on the city's website 

under "Public Hearings/Public Notices." The notice was also mailed to the two public 

libraries in the City of El Cajon, located at 201 East Douglas and 576 Garfield Avenue. 

ANALYSIS 

Staff believes the Commission can make the required findings to recommend Council 

approval of the proposed project based on the following project analysis. 

Approval of the proposed amendment to Specific Plan 106 serves the public interest 

because it would provide seven new housing units designated for the elderly in proximityto 

public transportation and community services. The new age-restricted dwellings units will 

be located approximately 1,000 feet from an existing bus stop, and the Cajon Valley Middle 

School Park is approximately 2,000 feet away. There will be adequate amenities provided 

at the site, if private laundry facilities are provided for future residents. The on-site market 

and nearby restaurants will provide additional shopping conveniences for future tenants. 

The proposed specific plan amendment is consistent with, and will implement, the General 

Plan and the previously stated General Plan policies related to the removal ofgovernment 

constraints to housing, providing a wide range of housing types, and providing agerestricted 

housing in close proximity to public transportation and recreational facilities.The 

proposal is also consistent with the intent and purpose of a specific plan, which is a plan for 

a particular portion of the City where circumstances require a more detailed plan of 

development than the general plan, and/or more detailed standards than the general 

provisions of the zoning ordinance. 

This proposal would satisfy the applicable development standards of the C-G zone, 

including the number of required parking spaces. The proposed project will not result in a 

parking problem on adjacent properties or public streets. The subject site has 12 extra 

parking spaces and access to 12 additional joint-use parking spaces at the motel property 

to the west. These 24 additional parking spaces will be able to accommodate visitors at 

the subject site. 

The proposed resolution recommends that the project be age-restricted for the life of the 

project. This condition enables the Commission to make Finding 0, above. 

Finally, the movement of fuel trucks and the conduct of the car wash at the subject 

property are regulated by CUP No. 1805. Information about the movement of fuel trucks 

has been included on the proposed site plan for SP NO.106. 

-, 7 -


Amendmentto Specific Plan 106 


ATTACHMENTS: 

1. Proposed Resolution NO.10704 

Exhibit A - P.C. Res. 10704, Standard Conditions of Development 

Exhibit B - P.C. Res. 10704, Public Works Department Comments dated 06-20-12 

Exhibit C - P.C. Res. 10704, Building Comments dated 06-05-12 

Exhibit D - P.C. Res. 10704, Fire Safety Comments dated 06-05-12 

Exhibit E - P.C. Res. 10704, Helix Water District comments dated 06-11-12 

2. Aerial Photo 

3. Application 

4. Disclosure Statement 

5. Public Hearing Notice 

6. Revised Reduced Plans (not to scale) dated received 10-15-12 

7. Revised Full-sized Site Plan (Commissioner's Binders)

PROPOSED PLANNING COMMISSION RESOLUTION NO.1 0704 

A RESOLUTION RECOMMENDING CITY COUNCIL APPROVAL 

OF AN AMENDMENT TO SPECIFIC PLAN NO. 106 TO ADD 

SEVEN ADDITIONAL AGE-RESTRICTED RESIDENTIAL 

APARTMENTS TO AN EXISTING MIXED-USE DEVELOPMENT 

IN THE C-G (GENERAL COMMERCIAL) ZONE. APN: 483-380-41; 

GENERAL PLAN DESIGNATION: GENERAL COMMERCIAL 

(GC). 

AM SPNO. '106 

Attachment1 

Proposed Reso. No. 10704 

WHEREAS, the EI Cajon Planning Commission duly advertised and held a 

continued public hearing on December 10, 2012, to consider an Amendment of 

Specific Plan No.1 06, as submitted by Quick Trip, Inc, requesting to add seven 

additional age-restricted (senior) residential apartments to an existing mixed-use 

development in the C-G (General Commercial) zone, on property located on the 

west side of North Mollision Avenue between Interstate 8 and West Madison 

Avenue and addressed as 596 North Mollison Avenue; and 

. WHEREAS, the following findings of fact are hereby made in regard to 

said specific plan: 

A. The proposed project is exempt from the California Environmental Quality 

Act (CEQA) under Section 15303, Class 3 (New Construction or 

Conversion of Small Structures) of CEQA Guidelines. Class 3 provides an 

exemption for the conversion of small structures in urban environments 

from one use to another. The proposed modifications to the site will result 

in the conversion of existing vacant commercial space to create seven 

new dwelling units. None of the exceptions listed in Section 15300.2 of the 


B. The proposed specific plan amendment will serve the public interest by 

providing seven new housing units designated for the elderly in close 

proximity to public transportation and community services, if private 

laundry facilities are provided in each new unit and if the housing units are 

age-restricted. 

C. The proposed specific plan amendment will systematically implement the 

General Plan because it will remove government constraints to housing, 

assist in the provision or a wide range of housing types, and provide agerestricted 

housing in close proximity to public transportation and 

recreational facilities. 

D. The proposed specific plan amendment will not result in a parking problem 

on adjacent properties or public streets because there is sufficient existing 

parking at the project site, and occupancy of the proposed residential units 

would be restricted to senior citizens.


E. A reduction in the amount of required parking at this project is warranted 

because the proposed residential units will remain age-restricted for the 

life of the project. 

F. The fuel truck circulation pattern is depicted on the project site plan and 

reduces vehicular conflicts. 

NOW, THEREFORE, BE IT RESOLVED that based upon said findings of 

fact, the EI Cajon City Planning Commission hereby RECOMMENDS CITY 

COUNCIL APPROVAL of an Amendment of Specific Plan No. 106 to add seven 

additional age-restricted residential apartments to an existing mixed-use 

development in the C-G zone, subject to the following conditions: 

1. Prior to the first reading of an ordinance amending SP No.1 06, the 

applicant shall submit a revised one-page site plan (24" by 36") to the 

Planning Division that reflects the conditions of approval and the following 

specific notes and changes: 

a. Remove the existing storm water management notes and replace 

them with the notes required under section A-1 of the attached 

comments from the Public Works Department. Place the notes 

under the heading of "Storm Water Requirements". 

b. Under the heading "Ongoing Conditions of Approval" List the 

ongoing conditions of approval required below in Condition No 3. 

c. Remove the notes and the dashed line which indicates reciprocal 

access along the south and west side of the hotel property. 

2. In addition to complying with the notes and site configuration of the 

revised SP NO.106 site plan, and prior to occupancy of the proposed new 

residential units, the following conditions shall be satisfied: 

a. The applicant shall comply with all the conditions listed in the 

"Standard Conditions of Development" adopted by the Planning 

Commission by Planning Commission Resolution No. 10649 and 

labeled "Exhibit A" as applicable. 

b. The applicant shall comply with the requirements of the Public 

Works Dept. as noted in the attached memo labeled "Exhibit B" 

dated 06-20-12. 

c. The applicant shall comply with the buildinq requirements of the 


labeled "Exhibit C" dated 06-05-12. 



labeled "Exhibit 0" dated 06-05-12. 


District as noted in the attached letter labeled "Exhibit E" dated 

06-11-12. 


P.C. Resolution NO.1 0704 

3. The following are ongoing conditions of approval for SP No. 106, which 

shall be noted on the revised SP No. 106 site plan under the heading of 

"Planning Requirements," and which shall be satisfied at all times during 

the life of the specific plan. 

a. The SP NO.106 site plan shall be consistent with the approved site 

plan for CUP No. 1805. Any subsequent changes that are made to 

the CUP No. 1805 site plan shall be reflected on the SP NO.106 

site plan and may require a formal amendment of SP No. 106. 

b. The 17 age-restricted residential units at this development shall 

only be made available to senior citizens. The head of the 

household, or their spouse, must be age 62 or older. "Agerestricted" 

shall be as defined by the US Department of Housing 

and Urban Development. 

c. Private laundry facilities shall be provided and maintained in each 

of the 17 age-restricted residential units at this development. 

4. If any and all preconditions for this specific plan amendment have not 

been satisfied, or the specific plan amendment has not become effective, 

and if no request for an extension of time has been received within one 

year of this approval this specific plan shall be considered null and void 

per EI Cajon Zoning Ordinance Section 17.35.010(C). 

5. The physical layout of the project site, including the shared parking areas, 

and the interconnecting drive aisles between lots shall be maintained as 

indicated on the plans reviewed by the Planning Commission on 

December 10, 2012, except as modified by this resolution or the approving 


6. Pursuant to EI Cajon Municipal Code, Section 17.70.080, after adoption of 

Specific Plan No.1 06, no building, structure or other improvement shall be 

located, erected or constructed within the area covered by such specific 

plan, and no use shall take place thereon, except as shown on the specific 

plan or an approved amendment thereof. 

{The remainder of this page intentionally left blank} 



PASSED AND ADOPTED by the El Cajon Planning Commission at a 

regular meeting held December 10,2012, by the following vote: 

ATTEST: 

AYES: 

NOES: 

ABSENT: 

Manjeet RANU, AICP, Secretary 


Darrin J. MROZ, Chairman

STANDARD CONDITIONS OF DEVELOPMENT 

(Planning Commission Resolution No. 10649) 

AM sP NO. 106 

ExhibitA - PC Reso. No. 10704 

StandardConditions of Development 

All projects approved by the Planning Commission shall comply with the fa\lowing standard conditions, 

unless specifically exempted by the Commission or Council. 

A. GENERAL 

1. 

2. 

B. PROJECT SITE 

The applicant shall comply with the school impact fee requirements of the 

Grossmont Union High School Districts, Cajon Valley} and La Mesa-SpringValley School 

Districts when applicable. 

For projects that require a grading permit and excavate more than three feet into native 

soils} and prior to the issuance of a Building Permit, the applicant shall submit a letter 

to the Director of Community Development agreeing to suspend construction in the 

vicinity of a cultural resource encountered during development of the site, and leave 

the resource in place until a qualified archaeologist can examine them and 

determine appropriate mitigation measures. All fees and expenses for the retaining of a 

qualified archaeologist shall be paid by the applicant and shall not be at City 

expense. The applicant shall agree to comply with mitigation measures recommended 

by the archaeologist and approved by the Director of Community Development. 

1. The applicant shall comply with all regulations and code requirements of the Building 

and Fire Safety Division} Public Works Department, the Police Department and any other 

agencies requiring review of the project. If required, these agencies shall be supplied 

copies of the final bullding and site plans. 

2. All landscape areas that adjoin parking spaces, driveways} vehicular circulation areas, or 

the public right-of-way shall be protected from encroachment by vehicles in a manner 

that also complies with state storm water regulations, which require storm water to be 

discharged to landscaped areas in order to reduce or eliminate the discharge of 

pollutants. The method of protection shall be determined by the Director of public 

works or the director's designee. The approved method may include six-inch high curb 

segments} wheel stops, decorative rock bands, orothermethcdsdetetrnirredtobe 

acceptable by the Director of public works. 

3. Environmental and engineering studies} as directed by the Director of Community 

Development, must be complete and on file prior to commencement to plan checking. 

Developer shall install off-street improvements determined necessary by the City 

Engineer to provide safe traffic conditions. 

4. Developer shall underground existing and required on and off-site utilities asspecified in 

Chapter 15 of the Municipal Code, or as deemed necessary by the City Engineer.

5. All development projects shall comply with Title 12 (Streets and Sidewalks), and Title 13 

(Water, Sewers, Grading, Erosion and Stormwater) of the EI Cajon Municipal Code as 




7. The design of any masonry soundwall shall be approved by the Planning Division. Such 

walls shall match or be architecturally compatible with existing soundwa1\s of 






public view. 





4. All vents, gutters; downspouts, flashing, electrical conduits, etc., shall be painted or 

finished to match the color of the adjacent surface, unless otherwise directed by the 


5. Soffits and other architectural elements visible from view but not detailed on the plans 


building. 




be finished with a decorative cap ortrim piece. 

D. LANDSCAPING 





3. The area under the drip line of all existing trees that are to remain shall be protected 

during construction by a fence or other acceptable means. Grading shall be restricted 

under the trees to prevent soil compaction and to prevent root damage. 

4. All sloped banks greater than three (3) feet in vertical height and 2:1 or greater slope 



one-gallon size and shall have a minimum separation of one (1) times the mature width 


tree for every 600 square feet of the total slope area. Trees shall be a minimum fivegallon 

size and shall be spaced a minimum of 30 feet apart. Trees and shrubs shall be 

planted in staggered clusters to soften and vary the slope plane. Slope planting required 



5. All landscaping shall be maintained in good growing condition. Such maintenance shall 















17.190.060 of the EI Cajon Municipal Code. 

4. The site shall be maintained in a neat and clean manner free of trash and debris. 


shall be visually screened or painted to match surroundings upon installation subject to 





provide a soft "wash" of light against the wall. All building, parking} and yard lights shall 


Standards 17 11S130 (G) and shall complement the site and building architecture.

7. The removal of trees shall not take place dUring the bird-nesting (breeding) season 

(February 1 through August 15), unless written aurnorization from a qualified biologist 

to proceed with tree removal is submitted to the PlanningDivision." ·If clearing is 

proposed totake place during the breeding season, a survey shall be conducted by the 

qualified biologist to determine if nests are present, or.nestbuildingorother 

breeding/nesting behavior is occurring. If nesting isnot occurring (which includes nest 

building or other breeding/nesting behavior) within this area, clearing shaH be allowed 

to proceed. If nesting is occurring (orbreeding/nesting behavior is occurring),tree 


breeding/nesting behavior) has ceased or until afterAugusti5. . 



Building Official.

APN:483-380-41 

AM SP NO. 106 

Exhibit B - PC Reso.No.10704 

PUblic Works Dept. Comments 

Street Name Right-or-Way Curb Street Class General Plan Class 

Exist Prop Exist Prop 

MOLLISON 84' 84' 64' 64' SECONDARY GENERAL 

AVENUE COMMERCIAL 

TO: 

FROM: 

RE: 

LOCATION: 

PLANNING DIVISION 

DEPARTMENT OF PUBLICWORKS 

AM SP 106 

596 NORTH MOLLISON AVENUE 

PUBLIC WORKS REQUIREMENTS AND COMMENTS WITH THIS ACTION 

A. STORM WATER REQUIREMENTS AND COMMENTS ":'ITH THIS ACTION 

A-I. Add the following notes to the Amended Specific Plan (AM SP) Site Plan and implement the Best 

Management Practices (BMPs) as a condition ofthe AM SP: 

"All operations shall comply with the City's Jurisdictional Urban RunoffManagement Program 

(JURMPj and the City's Storm Water Ordinance (Municipal Code 13.10 and 16.60) to minimizeor 

eliminate discharges ofpollutants to the storm drain system. Operations shall include 

implementation ofBest Management Practices (BMPs) as follows: 

a. Only rain is permitted to enter the storm drain system, Discharges (direct or by 

conveyance) oftrash, debris, vehicle fluids, or wastewater (including washingfluids) to the 

storm drain system are strictly prohibited.. 

b. Sweep or vacuum to clean outdoor areas (trash enclosures, sidewalks and parking lots). 

Power washing and detailing in outdoor areas is strictly prohibited. 

c. Maintain parking area to be free from trash andpetroleum leaks. 

d. Provide sufficient trash receptacles.' 

e. Dispose ofwastes properly. 

f All dumpsters used by this project shall have lockable lids. AU lids on all dumpsters shall 

remain closed while dumpster is not directly in use and locked after business hours. All 

dumpsters shall be properly stored inside ofa buildingor in a covered trash enclosure. 

g. All trash enclosures must be secured, covered with an impervious roof and constructed 

wit): a berm Of gmdp-break across the entire en.trance in accordance with the requirements 

ofPublic Works Storm Water Attachment No.2 (available to the public through Public 

Works on the 4thfloor ofCity Hall). 

H:\PRIVATE DEV\PLANNING ACTIONS\AM SP 106_596 N. Mollison Ave.doc

. Tuesday, june 05,2012 

To: Planning Division 

CITY OF EI CAJON 

MEMORANDUM 

From: . Building and Fire Safety Div., Dan Pavao 

Subject: Building Comments for AM SPi06 

596 N. Mollison Ave. 

Building Comments for this planning application are as follows: 

AM SPNO.106 

EXhibitC - PC Reso.No. 10704 

8uilding Comments 

RECEJVEO 

JUN 0' 52012 

PLANNING DIVISION 

1. Comply with Currently adopted edition of the CBC, CMC, CPC, and CEC. 

2. A Building permit is required for this project. 

3. This project will require fire barriers between occupancies. 

4. Project must comply with Title 24 disabled access regulations. 

5. Title 24 energy efficiency compliance and documentation is required. 

6. A licensed design professional is required for this project. 

7. An automatic sprinkler system is required by CBC or local ordinance. 

8. Undergrounding of all on-site utilities is required. 

9. Sound transmission control is required for group R-1 occupancies. This 

may be difficult given the adjacent gas station. 

10. Additional sewer connection fees will be based on fixture units added. 


11. Please be advised. Mixing of occupancies can be e:

Tuesday, June 05, 2012 

To: 

From: 

SUbject: 

Planning Division 

CITYOFEI CAJON 

MEMORANDUM 

Building and Fire Safety Div., Dan Pavao 

Fire Comments for AM SP106 

596 N. Mollison Ave. 

Fire Comments for this planning application are as follows: 

1. This project must comply with currently adopted edition of the CFC. 

AM SP NO. 106 

Exhibit0 _ PC Reso. No. 10704 

. Fire Safety comments 

'''flECE\\lED 

JUH u' 5 20\2 

PLANNING DNISON 

2. An approved automatic fire sprinkler system is required for this project. 

3. Fire extinguisher is required. One for every 3000 s.f with max. 75 ft. 

travel distance. Minimum size 2A1aBC with signage. 

4. Commercial address numbers shall be visible from the street, 

contrasting in color from wall surface, and minimum 8 inches in size 

(individual suite numbers may be 3"). 

5. Off-site monitoring for sprinkler system is requied. 

Dan Pavao 


MI 

EL "-"_oJiIO PLANNING COMMI N M 

"'---L.••",.BER 10, 2012 

NG 

AGENDA ITEM NO.5 - AMENDMENT OF SPECIFIC PLAN NO.106 - QUICK 

TRIP 

This was a public hearing on a request to add seven additional age-restricted 

residential apartments to an existing mixed-use development. The subject 

property is addressed as 596 North Mollison Avenue. This project is exempt from 

the California Environmental Quality Act (CEQA). Subsequent City Council 

action is required for this project to be approved. This item was continued from 

the September 10, 2012 meeting. 

APN: 483-380-41 

General Plan: General Commercial (GC) 

Zoning: General Commercial (C-G) 

Applicant: Quick Trip (Eddie Hamana) /619.987.6362 

Project Planner: Eric Craig /619.441.1782 

Email: ecraig@cityofelcajon.us and include "AM SP 

106" in Subject Line. 

In a PowerPoint presentation, RANU summarized the staff report. He added that 

the adjacent motel property owner submitted a letter noting that agreement 

addressing use of the pole sign, car wash hours of operation, sitting areas and 

parking for customers, and delivery truck circulation had been worked out 

between the motel and the applicant. 

SOTTILE asked about the language referring to the tenants in the senior housing 

not being able to use the motel property for parking, walking pets, or children 

playing in the parking lot. Since this is a restricted residential area, being 

designated senior housing, he questioned this condition and asked if children are 

actually there. 

RANU advised the existing housing previously approved was age-restricted. 

However, there is nothing to stop children from visiting their grandparents. This 

item has not been carried over into the property resolution currently in front of the 

Commissioners. Senior housing residents do have the right to circulate in 

vehicles on site along and use the shared parking. The entitlement plan does not 

address the issue of walking pets or children playing in the parking lot. This 

would be a civil matter between private property owners. 

CIRCa asked if the truck drivers were aware of the fuel truck movement outlined 

on the site plan. It shows the trucks pulling into the fuel drop where handicap 

1 

1-\1V1 SP 106 

Attachment 4 

Draft Minutes Excerpt from PC 

Meeting of 12-10-12

ElCAJ 

MIN 

lANNIN COMMISSION M ETIN 

EMBER 1 2 

parking is and then having to back up and drive out around the taco shop. He 

said he would ask the applicant during public testimony. 

MRaz opened the public hearing and invited any speakers to the podium. 

Eddie HAMANA, applicant, approached the podium to speak and responded to 

CIRCa's question regarding the truck route on the site. He had advised all the 

trucking companies and truckers of the route. He also added that all other issues 

had been worked out with the adjacent property owner. 

MRaZ asked if there were any children on site. 

HAMANA advised he had not seen any children on site and added that the 

residents are all over 65 years of age. He did observe one resident walking her 

dog and redirected her to a different area. 

All Commissioners were unanimous in their praise for the applicant on the 

improvements made to the property through various applications. 

No other speakers approached the podium. 

Motion was made by CIRCa, seconded by BALES, to close the public hearing; 

carried 5-0. 

Motion was made by CIRCa, seconded by BALES, to adopt the proposed 

Resolution NO.1 0704, as presented recommending City Council approval of 

Amendment of Specific Plan No.1 06, subject to conditions; carried 5-0. 

This item is tentatively scheduled for the City Council meeting on January 8, 

2013 at 7 p.m. 

2

The Planning Commission public hearing regarding CUP No. 2173 was conducted on 

December 10, 2012. During the public hearing, the Commissioners discussed the difficulties 

in reconciling the issue of an overconcentration of alcohol licenses in the census tract that 

would result if this project was approved and the potential for the applicant to operate a 

business that might not be detrimental to the community, with the very high crime rate in 

the area. The Commission also discussed the applicant's objections to certain conditions that 

staffrecommended to mitigate for the crime rate, should the CUP be approved. A copy ofthe 

draft minutes from the meeting are attached to this report and include information 

concerning the deliberations by the Commission. The Planning Commission set forth its 

findings and decision in Planning Commission Resolution No. 10711, a copy of which is also 

attached to this report. The decision of the Planning Commission to deny this application was 

appealed by the applicant. Reasons cited for the appeal are based on a different interpretation 

of the police crime statistics. 

Section 17.210.090 ofthe Zoning Code lists the "Considerations" that are required in order to 

approve any conditional use permit for alcohol sales. These are in addition to the typical 

"findings" that must be made before a conditional use permit may be approved. The City 

Council must consider the following items when evaluating the request for alcohol sales: 

A. The amount of existing or proposed off-street parking facilities, and the distance of 

such parking facilities from the proposed establishment; 

B. Hours of operation of the proposed establishment; 

C. The combination of uses proposed within the proposed establishment; 

D. The crime rate within the police district where the proposed establishment would be 

located as compared to the crime rate city-wide; provided that no permit is denied 

solely upon the basis of such crime rate ifit does not exceed specified averages set forth 

by state law; 

E. The total area of all window signs (painted or electric) shall not exceed 33.3 percent of 

the total window area ofthe establishment (Note: SP No. 182 limits window signs to 15 

percent of the total window sign area, which therefore controls window signs at the 

site); 

F. Whether there is an over-concentration of such businesses within the census tract in 

which the sale of alcoholic beverages is being proposed; and 

G. Such other considerations as in the judgment of the Planning Commission are 

necessary to assure compliance with the purpose and intent of this title. 

In order for the Council to approve the proposed project, the Council must be able to make all 

of the following findings: 

A. The proposed use is consistent with applicable goals, policies, and programs of the 

General Plan, and with any applicable specific plan; . 

B. The proposed site plan and building design are consistent with all applicable use and 

development standards; 

C. The proposed use will be operated in a manner that is compatible with existing and 

planned land uses in the vicinity of the proposed use;

3. Tile proposed site plan and building design of the convenience market are 

consistent with most applicable use and development standards. The 

proposed sale of off-sale beer and wine at the existing convenience market 

is permitted in the C-G zone, subject to the approval of a conditional use 

permit. The proposed off-sale beer and wine sales would not directly affect 

Zoning Code development standards and would not remove any required 

parking from the site, which would remain legally nonconforming. Existing 

building mounted lights are oriented towards the parking lot and E. Madison 

Avenue. The existing lights may be a nuisance to surrounding properties and 

drivers. The existing lighting will comply with Zoning Code development 

standards, if the lights are shielded and directed down onto the parking lot. 

4. The proposed use could potentially be operated in a manner that is 

compatible with existing and planned land uses in the vicinity of the proposed 

use, if the hours of beer and wine sales were reduced and if the amount of 

signage for beer and wine sales was restricted. The combination of uses 

within the convenience market are compatible because the applicant will not 

sell adult entertainment materials (e.g., magazines and videos), and because 

the sale of small single container alcoholic beveragesand keg beer would be 

prohibited. 

5. The proposed use will be detrimental to the publichealth, safety, and general 

welfare because an additional off-sale alcohol sales outlet could attract 

loitering, vandalism, littering, and under-age purchasing, thereby leading to 

more requests for police services. The subject site is located within Police 

District No. 114, which has a crime rate index of 564 and is therefore in a 

"Very High" crime area. 

6. The proposed use will not be in the best interest of public convenience and 

necessity and neither would be served because convenient nearby alcohol 

outlets already exist. Beer and wine are currently available for sale at five 

locations within a half mile of the subject site, all of which provide a 

convenient place for motorists and nearby residentsto purchase alcohol. The 

subject site is in a census tract that is currently at its maximum level of 

concentration for off-sale licenses. The approval of an additional license 

within the census tract would result in an over-concentration of licenses. 

B. The City Council hereby DENIES the appeal and UPHOLDS the decision and 

findings of the Planning Commission to deny CUP No. 2173.

with the General Plan, if the existing pole sign is removed if any new 

signage conforms to the regulations contained in the Zoning Code and SP 

No. 182. 

3. The existing site and building design of the convenience market are 

consistent with most applicable use and development standards. The 

proposed sale of off-sale beer and wine at the existing convenience market 

is permitted in the C-G zone, subject to the approval of a conditional use 

permit. The proposed off-sale beer and wine sales would not directly affect 

Zoning Code development standards and would not remove any required 

parking from the site, which would remain legally nonconforming. Existing 

building mounted lights are oriented towards the parking lot and E. Madison 

Avenue. The existing lights may be a nuisance to surrounding properties and 

drivers. The existing lighting will comply with Zoning Code development 

standards, if the lights are shielded and directed down onto the parking lot. 

4. The proposed use could potentially be operated in a manner that is 

compatible with existing and planned land uses in the vicinity of the proposed 

use, if the hours of beer and wine sales were reduced and if the amount of 

signage for beer and wine sales was restricted. The combination of uses 

within the convenience market are compatible because the applicant will not 

sell adult entertainment materials (e.g., magazines and videos), and because 

the sale of small single container alcoholic beverages and keg beer would be 

prohibited. 

5. The proposed use would not be detrimental to the public health, safety, and 

general welfare, if it does not contribute to the oversaturation of alcohol 

outlets within the City. The current oversaturation of alcoholic beverage 

outlets strains City resources, aggravates existing crime problems, and 

negatively impacts public safety. The proposed use will not exacerbate 

current oversaturation levels, if the applicant purchases two Type 20 licenses 

within the City, with one license coming from an over-concentrated census 

tract, and if one license is moved to 112 E. Madison Avenue and one license 

is cancelled. 

Even though there is a "Very High" crime rate in the immediate area, an 

additional outlet for off-sale beer and wine would not create additional 

problems and would not be detrimental to the public health, safety, and 

general welfare, if the hours during which beer and wine sales are sold are 

limited to between 10 a.m. and 11 p.m. While the alcohol-related crime rate 

is high, it is not high enough to explain the total higher crime rate in this 

Police reporting district. Therefore, crime will not unduly be exacerbated by 

this use after considering Section 17.210.090(0) of the Zoning Code. The 

addition of off-sale beer and wine within the existing convenience market 

would not be expected to generate noise, smoke, dust, fumes, vibration, 

odors, and hazards or excessive concentrations of traffic.

6. The proposed use is in the best interest of the public convenience and 

necessity because it will provide a convenient location for nearby residentsto 

purchase beer and wine. The proposed use will serve the nearby residential 

neighborhoods and will allow customers to walk to the store, rather than 

having to drive to an alcohol outlet and reduce the need for some residents 

to cross high traffic arterial roadways. This use will place more of the area 

within a quarter-mile radius of convenient off-sale alcohol sales and will serve 

the public convenience and necessity even though the census tract will have 

an overconcentration of licenses. A quarter-mile radius is generally accepted 

as a reasonable walking distance. Walkability and pedestrian access to 

goods and services is promoted downtown by SDA No.9 and SP No. 182. 

7. The proposed use (beer and wine sales for off-premise consumption) is 

categorically exempt from environmental review in accordance with Section 

15301, Class 1 (negligible expansion of existing use), of the CEQA 

Guidelines because the addition of beer and wine sales to the existing 

convenience market is considered a negligibleexpansion of use and involves 

no new development or expansion of the parking requirement. 

B. The City Council hereby approves the appeal and APPROVES Conditional Use 

Permit No. 2173 to add off-sale alcoholic beverage sales (Type 20 beer and wine 

license) at an existing convenience market addressed as 112 East Madison 

Avenue, subject to the following conditions: 

1. Prior to commencing beer and wine sales at the subject site, the applicant 

shall submit and obtain approval of a revised, one-page, 24" by 36" mylar 

site plan that reflects the following specific notes and changes: 

a. Under the heading "Planning Division Notes" add the ongoing 

conditions of approval listed in condition 3. 

b. Under the heading "Public Works Department Notes," add the items 

listed in condition A-1 of the Public Works Department memo labeled 

"Exhibit C" attached to the alternative P.C. Resolution NO.1 0711 and 

dated 10-2-12. 

c. Indicate the precise location of beer and wine sales within the market. 

The total display area for beer and wine shall not exceed 10 percent 

of the retail display area and shall include the aisles that are adjacent 

to the display area. 

2. In addition to complying with the notes and site configuration ofthe approved 

CUP No. 2173 site plan, the following conditions shall be satisfied: 

a. The applicant shall comply with all the applicable conditions listed in 

the "Standard Conditions of Approval" adopted by the Planning 

Commission by Planning Commission Resolution No. 10649, and 

attached to this resolution as "Exhibit A."

4. Prior to commencing beer and wine sales at the subject site, the applicant 

shall complete the following conditions of approval: 

a. The applicant shall purchase two Type 20 licenses within overconcentrated 

census tracts within the City. One license shall be 

transferred to 112 E. Madison Avenue and the other license shall be 

cancelled. 

b. The existing building mounted lights shall be shielded and directed 

down onto the parking lot. 

5. The existing non-conforming pole sign shall be removed from the site within 

one year of City Council approval of CUP No. 2173. Any new signage shall 

conform to the regulations contained in the Zoning Code and SP No. 182. 

6. The Planning Commission may at any time during the life of this use permit, 

after holding a properly noticed public hearing, at which time the applicant 

may appear and object under applicable law to any potential revocation or 

modification of the conditions of approval, andafter consideringtestimony as 

to the operation of the approved use, revoke the permit, or modify the permit 

with any additional conditions as it deems necessary, to ensure that the 

approved use continues to be compatible with surrounding properties and 

continues to be operated in a manner that is in the best interest of public 

convenience and necessity and will not be contrary to the public health, 

safety or welfare. 

7. The existence of this conditional use permit shall be recorded with the 

County Recorder. 

8. The proposed use shall be developed and operated in substantial 

conformance as presented in the Planning Commission staff report titled 

Conditional Use Permit No. 2173, dated December 10, 2012, except as 

modified by this resolution. Operation of the use in violation of the conditions 

of approval is grounds for revocation. 

9. If all conditions of approval have not been legally satisfied, the uses 

approved by this conditional use permit have not been commenced, and if no 

request for an extension of time has been received, within one year of 

approval by City Council, and subsequently approved, this conditional use 

permit shall be considered null and void per EI Cajon Zoning Code Section 

17.35.010.

Planning Commission Resolution No.1 0711 

D. The proposed use could be operated in a manner that is compatible with existing 

and planned land uses in the vicinity of the proposed use, if the hours of beer and 

wine sales were limited and if the amount of signage for beer and wine sales was 

restricted. The combination of uses within the convenience market could be 

acceptable because the applicant has eliminated adult entertainment materials 

(e.g., magazines and videos), and because the sale of small single container 

alcoholic beverages would be restricted; 

E. The proposed use will be detrimental to the public health, safety, and general 

welfare because an additional off-sale alcohol sales outlet could attract loitering, 

vandalism, littering, and under-age purchasing, therebyleading to more requestsfor 

police services. The subject site is located within PoliceDistrict No. 114, which has 

a crime rate index of 564 and is therefore in a "Very High" crime area. The Police 

Department has recommended that the request for off-sale beer and wine be 

denied at this location as indicated in the EI Cajon Police Department Memo dated 

September 30, 2012, and attached as Exhibit "A"; and 

F. The proposed use will not be in the best interest of public convenience and 

necessity and neither would be served because convenient nearby alcohol outlets 

already exist. Beer and wine are currently available for sale at five locations withina 

half mile ofthe subject site, all of which provide a convenientplace for motorists and 

nearby residents to purchase alcohol. The subject site is in a census tract that is 

currently at its maximum level of concentration for off-sale licenses. The approvalof 

an additional license within the census tract would result in an over-concentrationof 

licenses. 

NOW, THEREFORE, BE IT RESOLVED that based upon said findings offact stated 

above, the El Cajon Planning Commission hereby DENIES the request to add off-sale 

alcoholic beverage sales (Type 20 beer and wine license) to the existing convenience 

market in the C-G zone, on the above described property. 

[The remainder of this page intentionally left blank.] 


DATE: 

TO: 

FROM: 

J 

POLICE DEPARTMENT 

September 30,2012 


Via Chief of Pollee 

It Mike Moulton 

l\tlEMORAN UM 

SUBJECT: CUP# 21'73, 112 East Madison AVEL 

cUP NO. 2173 

EXhibit A - PC Reso. No.1 0711 

Police Department comments 

Conditional Use Permit (CUP) No. 2173 is being sought by Magnolia Family Market for a 

Type 20 off-sale beer and wine license. The property is located at 112 E. Madison. 

The store is located within Census Tract 163.01 and District 114 which is designated as a 

"Very High" crime area. This designation is based on statistical data from reported crimes 

and arrests in this area. The average index total for the 45 Police Districts in El Cajon 

was 154. In general a "very high" crime area is considered to be greater than 200% 

over the average index, (greater than 308). A "high" crime area is 120-200% (184-308), 

an "average" crime area is considered to be 80-119% (123-1183) and a "low" crime 

area is less than 80% (122 or less) of the average crime index. During 2011, the 

percentage of alcohol related arrests compared to total arrests in El Cajon was 13.9% 

District 1'14 has an index of 564, placing it in the "VERY HIGH" category of criminal 

activity. In fact, the crime index in District 114 is nearly twice that in which a district 

would be considered a "very high" crime area. Dlstrlct i '14 had a 22,7% alcohol to total 

arrest percentage. 

Currently, Census Tract 163.01 is at maximum capacity for off-sale licenses (3). In 

addition, the City of EI Cajon is currently designated as a "Moratorium City" by the 

Department of Alcoholic Beverage Control (ABC) because the ratio of Type 20 (off-sale 

Committed to a Safe & Secure Community tI1rough, Service, Mutual Cooperation and Respect


Conditional Use Permit No. 2173 


A request to reestablish alcohol sales at the subject site was denied by the Planning 

Commission on July 25,2011. The Planning Commission found that the addition of beer 

and wine sales to the existing market would only compound existing problems in an area 

with a "Very High" crime rate. The applicant appealed the decision by the Planning 

Commission on July 26,2011. On August 9,2011 the City Council denied the appeal and 

upheld the decision and findings by the Planning Commission. 

\JVhen the request to reestablish alcohol sales at the subject site was denied by the City 

Council, the Department of Alcoholic beverage Control indicated that the maximum 

concentration level for the Census Tract that includes the subject site was four off-sale 

licenses. At that time, there were only three existing licenses, meaning that the approval of 

one additional license would not result in an overconcentration. Since the denial by the 

Planning Commission, the Department of Alcoholic Beverage Control has utilized 2010 

Census data to update maximum concentration levels and determined that the existing 

Census Tract can only accommodate three licenses. With three existing licenses, the 

Census Tract that includes the subject site is currently at its maximum level of 

concentration. 

PROJECT DESCRIPTION 

Existing Conditions: The subject property is a rectangular lot with 52 ft. of street frontage 

on E. Madison Ave., a lot depth of 140 ft., and a net lot area of 0.17 acres. The subject 

property is developed with a 2,496 sq. ft. convenience market. There are seven parking 

spaces and a landscape planter between the market and E. Madison Avenue. The parking 

area has interconnecting access with tile adjacent properties. Behind the market is an 

outdoor area that is used for deliveries and the storage of trash/recycling. Outdoor lights 

are mounted to the building and directed towards the parking lot and E. Madison Avenue. 

North of the subject site is an office building. West ofthe sitethere is an automotive fueling 

station. To the east of the site is a coin laundry facility, The properties to the north, west 

and east are located in the C-G zone. South of the subject site, across E. Madison 

Avenue, there is a motel and restaurant (Perry's Cafe), which are also zoned C-G. 

Project Proposal: The applicant is requesting to reestablish off-sale alcoholic beverage 

sales (Type 20 beer and wine license) at the existing convenience market. The proposed 

site plan indicates that the total retail display area within the store is 1,768 sq. ft. and that 

10% of the display area (1"16.8 sq. ft.) will be used for the display of beer and wine. 

The applicant has also provided a written narrative (attached) indicating that the existing 

legal nonconforming pole sign will be removed and replaced with a conforming sign, if the 

request is approved. The narrative also includes the following operational conditions that 

the applicant is willing to accept: 

- 2 -

Planning Commission Staff Reoort 

Conditional Use Permit No. 21h 

December 10,2012 Agenda 

1. The hours of operation for beer and wine shall be from B a.rn. 12 a.m, 

2. No single container of beer or wine coolers shall be sold that are 16 oz. or less and 

no single container of malt beverages shall be sold that are 40 oz. 

3. The sale of keg beer will be prohibited on the premises. 

4. Entertainment uses and amusement devices, including video and arcade games, 

will be prohibited. 

5. The owner or operator of the alcoholic beverage outlet shall post a prominent, 

permanent sign or signs stating, "No loitering, consumption of alcoholic beverages, 

or open alcoholic beverage containers allowed insidethe premises, parkingarea, or 

on public sidewalks adjacent to the premises." 

6. The store will not sell adult magazines or videos. 

General Plan: The General Plan designation of the subject property is Special 

Development Area No. 9 (SDA #9 or Downtown Redevelopment Area) and General 

Commercial (GC). The Downtown Redevelopment Area intends for a mixed-use urban 

village centered on the historic commercial center of EI Cajon. The GC designation is 

located along major thoroughfares in the City and is intended for general shopping or 

service uses not typically found in shopping centers. 

Goal 1 of the General Plan is to improve the appearance of the City through a variety of 

efforts, including the removal of nonconforming signs. The subject site is developed with a 

pole sign, which is no longer allowed within SP No. 182. The applicant's written narrative 

requests that the existing pole sign be allowed to remain for a period of one year before 

being removed and replaced, if the CUP is approved. The proposed use and development 

will comply with the General Plan, if the existing pole sign is removed and if any new 

signage conforms to the regulations contained in the Zoning Code and SP No. 182. 

Draft Downtown Specific Plan: The subject site is within the boundaries of the Draft 

Downtown Specific Plan and is within the Community Recreation District. The land use 

portion of the draft plan identifies the site as CO-2 (Commercial Office) and the site is 

located on an enhanced secondary pedestrian route. A conveniencemarket, with no more 

than 10 percent of the floor area devoted to beer and wine sales would be allowed on this 

property, subject to the approval of a conditional use permit, if the draft plan is adopted. 

Specific Plan (SP) No. 182: The subject site is located within the boundaries of 

the existing SP No. 182. A convenience market, with off-sale alcoholic beverage sales 

(Type 20 beer and wine license) is permitted within SP No. 182, subject to City Council 

approval of a conditional use permit. 

Zoning: The subject property is located in the C-G zone. The C-G zone is intended to 

provide a full range of general commercial uses ranging from offices, to retail sales, to 

- 3 -



December 10,2012 Agenda 

Staff believes the Commission can make most, but not all, of the required findinqs to 

approve the proposed off-sale alcoholic beverage sales (Type 20 beer and wine license) at 

112 E. Madison Avenue based on the following project analysis. Specifically, staff does not 

believe the Commission can make findings "D" and "E". 

A. The proposed convenience market with beer and wine sales is consistent with 

applicable goals, policies, and programs of the General Plan, and with Specific Plan 

No. 182. The General Plan indicates that the site is intended for general shopping 

or service uses not typically found in shopping centers, which is consistent with a 

convenience market. A General Plan goal is to improve the appearance of the City 

through the removal of nonconforming signs. The subject site is developed with a 

pole sign, which is no longer allowed within SP No. 182. The proposed use and 

development will comply with the General Plan, if the existing pole sign is removed 

and if any new signage conforms to the regulations contained in the Zoning Code 

and SP No. 182. 

B. The existing site and building design ofthe convenience market are consistent with 

most applicable use and development standards. The proposed sale of off-sale. 

beer and wine at the existing convenience market is permitted in the C-G zone, 

subject to the approval of a conditional use permit. The proposed off-sale beer and 

wine sales would not directly affect Zoning Code development standards and would 

not remove any required parking from the site, which would remain legally 

nonconforming. Existing building mounted lights are oriented towards the parking lot 

and E. Madison Avenue. The existing lights may be a nuisance to surrounding 

properties and drivers. The existing Iightinri will comply with Zoning Code 

development standards, if the lights are shielded and directed down onto the 

parking lot. 

C. The proposed use could potentially be operated in a manner that is compatible with 

existing and planned land uses in the vicinity of the proposed use, if the hours of 

beer and wine sales were reduced and if the amount of signage for beer and wine 

sales was restricted. The combination of uses within the convenience market are 

compatible because the applicant will not sell adult entertainment materials (e.g., 

magazines and videos), and because the sale of small single container alcoholic 

beverages and keg beer would be prohibited. 

D. The proposed use could potentially be detrimental to the public health, safety, and 

general welfare. The addition of off-sale beer and wine within the existing 

convenience market would not be expected to generate noise, smoke, dust, fumes, 

vibration, odors, and hazards or excessive concentrations of traffic. Since existing 

conditions indicate that there is a "VeIY High" crime rate in the immediate area, staff 

believes that an additional outlet for off-sale beer and wine would only compound 

existing problems in the area and would be detrimental to the public health, safety, 

and general welfare. The Zoning Code states that the denial of a conditional use 

- 7 -




permit for alcohol sales may not be based entirely on a high crime rate if it does not 

exceed specified averages set forth by state law (not less than 20% higher than the 

citywide average). The subject site is within EI Cajon Police Reporting District No. 

114, which reported 564 crimes, with the City district average being 154 crimes 

reported (arrests), which is 366% higher than the citywide average. 

E. The proposed use is not in the best interest of public convenience and necessity 

because of the "Very High" crime rate in the area. In 2011, 22.7 percent of the 

crimes in District No. 114 were alcohol related, versus 13.9 percent citywide The 

addition of beer and wine sales at the subject site would make beer and wine more 

accessible and could result in more alcohol related crimes occurring in the area, 

which already has a "Very High" crime rate. The subject site is in a census tract that 

is currently at its maximum level of concentration for off-sale licenses. The approval 

of an additional license within the census tract would result in an over-concentration 

of licenses. 

A resolution recommending City Council approval of the request has also been prepared 

for the Commission's consideration, if the Commission supports the applicant's request. 

The following analysis addresses the alternative findings for "0" and "E". 

O. The proposed use would not be detrimental to the public health, safety, and general 

welfare, if it does not contribute to the oversaturation of alcohol outlets within the 

City. The current oversaturation of alcoholic beverage outlets strains City 

resources, aggravates existing crime problems, and negatively impacts public 

safety. The proposed use will not exacerbate current oversaturation levels, if the 

applicant purchases two Type 20 licenses within the City, with one license coming 

from an over-concentrated census tract, and if one license is moved to 112 E. 

Madison Avenue and one license is cancelled. 

Even though there is a "Very High" crime rate in the immediate area, an additional 

outlet for off-sale beer and wine would not create additional problems and would not 

be detrimental to the public health, safety, and general welfare, if the hours during 

which beer and wine sales are sold are limited to between 10 a.m. and 11 p.m. 

While the alcohol-related crime rate is high, it is not high enough to explain the total 

higher crime rate in this Police reporting district. Therefore, crime will not unduly be 

exacerbated by this use after considering Section 17.210.090(0) of the Zoning 

Code. The addition ofoff-sale beer and wine within the existing convenience market 

would not be expected to generate noise, smoke, dust, fumes, vibration, odors, and 

hazards or excessive concentrations of traffic; and 

E. The proposed use is in the best interest of the public convenience and necessity 

because it will provide a convenient location for nearby residents to purchase beer 

and wine. The proposed use will serve the nearby residential neighborhoods and 

- 8-




will allow customers to walk to the store, rather than having to drive to an alcohol 

outlet and reduce the need for some residents to cross higll traffic arterial roadways. 

This use will place more of the area within a quarter-mile radius of convenient offsale 

alcohol sales and will serve the public convenience and necessity even though 

the census tract will have an overconcentration of licenses. A quarter-mile radius is 

generally accepted as a reasonable walking distance. Walkabi/ity and pedestrian 

access to goods and services is promoted downtown by SDA NO.9 and SP No. 

182. 

ATTACHMENTS: 

1. Proposed Resolution No. 10771 (denial) 

Exhibit A - P.C. Res. 10771: Police Department comments 9-30-2012 

Exhibit B - P.C. Res. 10771: Alcoholic Beverage Control Report -- District 1'14- 

2. Proposed Resolution No. 10771 (approval) 

Exhibit A - P.C. Res. 10771: Standard Conditions of Approval 

Exhibit B - P.C. Res. 10771: Police Department comments 9-30-2012 

Exhibit C - P.C. Res. 10771: Public Works comments dated 10-2-2012 

3. "2011 Moratorium Counties I Cities" ABC Information Packet 

4. Staff Exhibit Map 

5. ABC Census Tract Data 

6. Levels of Criminal Activity Map - 2011 

7. Aerial photograph of SUbject property 

8. Public hearing notice 

9. Application 

10. Disclosure statement 

11. Magnolia Family Market Narrative dated 11-15-2012 

12. Reduced CUP No. 2173 Site Plan 

13. Full size CUP No. 2173 Site Plan (Commissioner's Binders) 

- 9 -

[This page intentionally left blank.] 

- 10-

Planning Commission Resolution No. 10771 

D. The proposed use could be operated in a manner that is compatible with existing 

and planned land uses in the vicinity of the proposed use, if the hours of beer and 

wine sales were limited and if the amount of signage for beer and wine sales was 

restricted. The combination of uses within the convenience market could be 

acceptable because the applicant has eliminated adult entertainment materials 

(e.g., magazines and videos), and because the sale of small single container 

alcoholic beverages would be restricted; 

E. The proposed use will be detrimental to the public health, safety, and general 

welfare because an additional off-sale alcohol sales outlet could attract loitering, 

vandalism, littering, and under-age purchasing, thereby leading to more requests for 

police services. The subject site is located within Police District No. 114, which has 

a crime rate index of 564 and is therefore in a "Very High" crime area. The Police 

Department has recommended that the request for off-sale beer and wine be 

denied at this location as indicated in the El Cajon Police Department Memo dated 

September 30, 2012, and attached as Exhibit "A"; and 

F. The proposed use will not be in the best interest of public convenience and 

necessity and neither would be served because convenient nearby alcohol outlets 

already exist. Beer and wine are currently available for sale at five locations withina 

half mile of the subject site, all of which provide a convenient place for motorists and 

nearby residents to purchase alcohol. The subject site is in a census tract that is 

currently at its maximum level of concentration for off-sale licenses. The approvalof 

an additional license within the census tract would result in an over-concentration of 

licenses. 

NOW, THEREFORE, BE IT RESOLVED that based upon said findings of fact stated 

above, the El Cajon Planning Commission hereby DENIES the request to add off-sale 

alcoholic beverage sales (Type 20 beer and wine license) to the existing convenience 

market in the C-G zone, on the above described property. 

[The remainder of this page intentionally left blank.] 



PASSED AND ADOPTED by the El Cajon City Planning Commission at a 

regular meeting held December 10,2012, by the following vote: 

ATTEST: 

AYES: 

NOES: 

ABSENT: 



Darrin ,J. MROZ, Chairman

DATE: 

TO: 

FROM: 

September 30,2012 


Via Chief of Police 

Lt. Mike Moulton 

LICE DE RTMENT 

M MORANDUM 

SUB,JECT: CUP# 2173,112 East Madison Ave. 

cUP NO. 2173 

Exhibit A - PC Resa. No. 10771 

PoliceDepartment comments 





and arrests in this area. The average index total for the 45 Police Districts in EI Cajon 





percentage of alcohol related arrests compared to total arrests in EI Cajon was 13.9% 

District 1'14 has an index of 564, placing it in the "VERY HIGH" category of criminal 


would be considered a "very high" crime area. District 114 had a 22.7% alcohol to total 



addition, the City of E! Cajon is currently designated as a "Moratorium City" by the 

Department of Alcoholic Beverage Control (ABC) because the ratio of Type 20 (ott-sale 

Committed to a Safe ,'!" Secure Community through, Service, Mutua! Cooperation and Respect

eer and wine) licenses in the City one for each 2,'JdO inhabitants. Therefore, 

ABC will not issue new Type 20 licenses in the City of El Cajon and will not allow the 

transfer of an existing license into the City, without a finding by the City of public 

convenience or necessity. 

Oversaturation of alcoholic beverage retailers strains City resources aggravating existing 

crime problems and negatively impacts public safety. Based on the Police Department's 

investigation in this particular application, it is not in the public convenience or necessity to 

authorize a new off-sale license on the subject property and it is recommended ttlis 

application be denied. 

Should the City Council choose to grant the CUP over this objection, the Police 

Department would recommend the following conditions: 

The CUP applicant be required to purchase two Type 20 licenses within overconcentrated 

census tracts within the City. Furthermore, oneof the licenses shall be 

cancelled with ABC. This action would result in the net reduction of one Type 20 license 

within EI Cajon and no net new licenses within the subject census tract. 

In addition, the Police Department recommends the following conditions: 

1. Sales of alcoholic beverages shall only be permitted between the hours of 10:00 

AM and 11 :00 PM. 

2. The petitioner shall be responsible for maintaining free of litter the area adjacent to 

the premises over which they have control. 

3. No wine shall be sold with an alcoholic content of greater then '15% by volume 

except for "Dinner Wines" which have been aged two years or more. 

4. Beer, wine coolers and other malt beverages cannot be sold by single containers, 

but must be sold in manufacturer pre-packaged multi unit quantities. 

5. There shall be no exterior advertising or sign of any kind or type, including 

advertising directed to the exterior from within, promoting or indicating the 

availability of alcoholic beverages. Interior displays of alcoholic beverages or signs 

which are clearly visible to the exterior shall constitute a violation of this condition. 

6. A maximum of 10 percent of the retail display area may be devoted to the sale 

and display of alcoholic beverages limited to off-sale beer and wine, non-fortified 

products only. Retail display area includes all floor area within the establishment 

that is accessible and within view of customers, including aisles, and floor area 

occupied by shelves, counters, and refrigerator coolers. 

Committed to a Safe & Secure Community through, Selvice, Mutual Cooperation and Respect

DATE: 9/27/12 

TO: Lt. J. Arvan 

FROM: Joan Bond 

Crime Analysis 

I F E J 

POIJCE DEPARTl\'lENT 

MEl\1ORANDUlVl 

SUBJECT: Alcohol Beverage Control Report -112 Eo Madison 

CUP NO. 2173 

Exhibit B - PC Resa. No. 10T71 

Alcohotic Beverage Control Report 

A comparison of major crime and minor arrests occurring in a Police District is considered a viable 

indicator of the level of crirninal activity withi.n the area. Th.is type of criminal activity index is often used by 

Alcoholic Beverage Control (ABC) to assist in determinations regarding the issuance of liquor licenses. 

During the year 2011 the average index total for the 45 Police Districts in £1 Cajon was 154. In general a 

"very high" crime area is considered to be greater than 200% over the average index, (greater than 308). A 

"high" crime area is 120-200% (184-308), an "average" crime area is considered to be 80-119% (123-183) and 

a "low" crime area is less than 80% (122 or less) of the average crime index, 

The address 112 E. Madison is in District 114. District 114 has an index of 564, placing it in the 

"VERY H 1GB" category of criminal activity. During calendar year 2011, the percentage of alcohol related 

arrests as compared to total arrests in the city of El Cajon was 13.9% for District 114 it was 22.7%. 

Attached is a summary of the major crime and minor arrests for District 114. 

Committed to a Safe & Secure Community through, Service, Mutua! Cooperation and Respect

Planning Commission Resolution No.1 0711 

oriented towards the parking lot and E. Madison Avenue. The existing lights may be 

a nuisance to surrounding properties and drivers. Tr18 existing lighting will comply 

with Zoning Code development standards, if the lights are shielded and directed 

down onto the parking lot; 

O. The proposed use can be operated in a manner that is compatible with existing and 

planned land uses in the vicinity of tile proposed use, if the hours of beer and wine 

sales were reduced and if the amount of signage for beer and wine sales was 

restricted. The combination of uses within the convenience market is acceptable 

because the applicant has eliminated adult entertainment materials (e.g., 

magazines and videos), and because the sale of small single container alcoholic 

beverages would be restricted; 

E. The proposed use will not be detrimental to the public health, safety, and general 

welfare, if it does not contribute to the oversaturation of alcohol outlets within the 

City. The current oversaturation of alcoholic beverage outlets strains City 

resources, aggravates existing crime problems, and negatively impacts public 

safety. The proposed use will not exacerbate current oversaturation levels, if the 

applicant purchases two Type 20 licenses within the City, with both licenses coming 

from over-concentrated census tracts, and if one license is moved to 112 E. 

Madison Avenue and one license is cancelled. 

Even though there is a "Very High" crime rate in the immediate area, an additional 

outlet for off-sale beer and wine would not create additional problems and would not 

be detrimental to the public health, safety, and general welfare. While the alcohol 

related crime rate is high, it is not high enough to explain the total higher crime rate 

in this Police reporting district. Therefore, the Planning Commission finds that crime 

will not unduly be exacerbated by this use after considering Section 17.210.090(0) 

of the Zoning Code. The addition of off-sale beer and wine within the existing 

convenience market would not be expected to generate noise, smoke, dust, fumes, 

vibration, odors, and hazards or excessive concentrations of traffic; and 

F. The proposed use is in the best interest of the public convenience and necessity 

because it will provide a convenient location for nearby residents to purchase beer 

and wine. The proposed use will serve the nearby residential neighborhoods and 

will allow customers to walk to the store, rather than having to drive to an alcohol 

outlet and reduce the need for some residents to cross high traffic arterial roadways. 

This use will place more of the area within a quarter-mile radius of convenient offsale 

alcohol sales and will serve the public convenience and necessity even though 

the census tract will have an overconcentration of licenses. A quarter-mile radius is 

generally accepted as a reasonable walking distance. Walkability and pedestrian 

access to goods and services is promoted downtown by SOA NO.9 and SP No. 

182. 


Planning Commission Resolution NO.1 0711 

NOW, THEREFORE, BE IT RESOLVED that based upon said findings of fact, the 

EI Cajon Planning Commission hereby RECOMMENDS CITY COUNCIL APPROVAL of 

the request to add off-sale alcoholic beverage sales (Type 20 beer and wine) to the 

existing convenience market in the zone, on the above described property, subject to 

the following conditions: 

1. Prior to commencing beer and wine sales at the subject site, the applicant shall 

submit and obtain approval of a revised, one-page, 24" by 36" mylar site plan that 

reflects the following specific notes and changes: 

a. Under the heading "Planning Division Notes" add the ongoing conditions of 

approval listed in condition 3. 

b. Under the heading "Public V'Jorks Department Notes,"add the items listed in 

condition A-1 of the Public VVorks Department memo labeled "Exhibit C" and 

dated 10-2-12. 

c. Indicate the precise location of beer and wine sales within the market. The 

total display area for beer and wine shall not exceed 10 percent of the retail 

display area and shall include the aisles that areadjacentto the display area. 

2. In addition to complying with the notes and site configuration of the approved 

CUP No. 2173 site plan, the following conditions shall be satisfied: 

a. The applicant shall comply with all the applicable conditions listed in the 

"Standard Conditions of Approval" adopted bythe Planning Commission by 

Planning Commission Resolution No.1 0649, and attached to this resolution 

as "Exhibit A." 

b. The applicant shall comply with the conditions to operate listed in the Police 

Department as noted in the attached memo labeled "Exhibit B" and dated 

9-30-12. 

c. The applicant shall comply with the requirements of tile Public Works 

Department as noted in the attached memo labeled "Exhibit C" and dated 

10-2-12. 

3. The following are ongoing conditions of approval forthis conditional use permit and 

shall be noted on the CUP site plan: 

a. Any change in use or expansion of use may require an amendment to the 

conditional use permit. 

b. Beer and wine sales shall only occur between 10 a.m, and 11 p.m. 

c. The petitioner shall be responsible for maintaining free of litter the area 

adjacent to the premises over which they have control. 

d. No wine shall be sold with an alcoholic content of greater than 15% by 

volume, except for "Dinner Wines" which have been aged two years or more. 

e. Beer, wine coolers and ot.her malt beverages cannot. be sold by single 

containers, but must be sold in manufacturer pre-packaged multi-unit 

quantities. 



f. The owner or operator of the alcoholic beverage outlet shall post a 

prominent, permanent sign or signs stating, "No loitering, consumption of 

alcoholic beverages, or open alcoholic beverage containers allowed inside 

the premises, parking area, or on public sidewalks adjacent to the premises." 

g. There shall be no exterior advertising or sign of any kind or type, including 


availability of alcoholic beverages. Interior displays of alcoholic beverages or 

signs which are clearly visible to the exterior shall constitute a violation ofthis 

condition. 

h. A maximum of 10 percent of the retail display area may be devoted to the 

sale and display of alcoholic beverages limited to off-sale beer and wine, 

non-fortified products only. Retail display area includes all floor area within 

the establishment that is accessible and within view of customers, including 

aisles, and floor area occupied by shelves, counters and refrigerator coolers. 

i. The retail display area for beer and wine shall only occur in locations 

approved by the Community Development Department as shown on an 

approved floor plan. The display area shall be situated so as not to be 

visible from the exterior of the market. 

j. The sale of keg beer is prohibited. 

1


best interest of public convenience and necessity and will not be contrary to the 

public health, safety or welfare. 

7. The existence of this conditional use permit shall be recorded with the County 

Recorder. 

8. The proposed use shall be developed and operated in substantial conformance as 

presented in the Planning Commission staff report titled Conditional Use Permit No. 

1035, dated December 10, 2012, except as modified by this resolution. Operation of 

the use in violation of the conditions of approval is grounds for revocation. 

9. If all conditions of approval have not been legally satisfied, the uses approved by 

this conditional use permit have not been commenced, and if no request for an 

extension of time has been received, within one year of approval by City Council, 

and subsequently approved, this conditional use permitshall be considered null and 

void per El Cajon Zoning Code Section 17.35.010. 

{The remainder of thls page intentionally left blank} 


Proposed P.C. Resolution No. 10711 

PASSED AND ADOPTED by the EI Cajon City Planning Commission at a 

regular meeting held December 10, 2012, by the following vote: 

ATTEST: 

AYES: 

NOES: 

ABSENT: 



DaiTinTlViR6z, Chairman

D ENT 

(Planning Commission Resolution No. 10649) 

CUP NO. 2173 

ExhibitA - PC Reso. NO.10771 

Standard Conditionsof Approval 

All projects approved by the Planning Commission shall comply with the following standard conditions, 

unless specifically exempted by the Commission or Council. 

A. GENERAL 

1. The applicant shall comply with the school impact fee requirements of the 

Grossmont Union High School Districts, Cajon Valley, and La Mesa-Spring Valley School 

Districts when applicable. 

2. For projects that require a grading permit and excavate more than three feet into native 

soils, and prior to the issuance of a BUilding Permit, the applicant shall submit a letter 

to the Director of Community Development agreeing to suspend construction in the 

vicinity of a cultural resource encountered during development of the site, and leave 

the resource in place until a qualified archaeologist can examine them and 

determine appropriate mitigation measures. All feesand expenses for the retaining of a 

qualified archaeologist shall be paid by the applicant and shall not be at City 

expense. The applicant shall agree to comply with mitigation measures recommended 

by the archaeologist and approved by the Director of Community Development. 

B. PROJECT SITE 

1. The applicant shall comply with all regulations and code requirements of the Building 

and Fire Safety Division, Public Works Department, the Police Department and any other 

agencies requiring review of the project. If required, these agencies shall be supplied 

copies of the final building and site plans. 

2. All landscape areas that adjoin parking spaces, driveways, vehicular circulation areas, or 

the public right-of-way shall be protected from encroachment by vehicles in a manner 

that also complies with state storm water regulations, which require storm water to be 

discharged to landscaped areas in order to reduce or eliminate the discharge of 

pollutants. The method of protection shall be determined by the Director of public 

works or the director's designee. The approved method may include six-inch high curb 

segments, wheel stops, decorative rock bands, or other methods determined to be 

acceptable by the Director of public works. 

3. Environmental and engineering studies} as directed by the Director of Community 

Development, must be complete and on file prior to commencement to plan checking. 

Developer shall install off-street improvements determined necessary by the City 

Engineer to provide safe traffic conditions. 

4. Developer shall underground existing and required on and off-site utilities as specified in 

Chapter 15 of the Municipal Code, or as deemed necessary by the City Engineer.

5. All development projects shall comply with Title 12 (Streets and Sidewalks), and Title 13 

(Water, Sewers, Grading, Erosion and Starmwater) of the EI Cajon Municipal Code as 




7. The design of any masonry soundwall shall be approved by the Planning Division. Such 

walls shall match or be architecturally compatible with existing soundwalls of 






public view. 





4. All vents, gutters, downspouts, flashing, electrical conduits, etc., shall be painted or 

finished to match the color of the adjacent surface, unless otherwise directed by the 


5. Soffits and other architectural elements visible from view but not detailed on the plans 


building. 




be finished with a decorative cap or trim piece. 

D. It\NDSCAPING 





3. The area under the drip line of all existing trees that are to remain shall be protected 

during construction by a fence or other acceptable means. Grading shall be restricted 

under the trees to prevent soil compaction and to prevent root damage. 

4. All sloped banks greater than three (3) feet in vertical height and 2:1 or greater slope 



one-gallon size and shall have a minimum separation of one (1) times the mature width 


tree for every 600 square feet of the total slope area. Trees shall be a minimum five 

gallon size and shall be spaced a minimum of 30 feet apart. Trees and shrubs shall be 

planted in staggered clusters to soften and vary the slope plane. Slope planting required 



5. All landscaping shall be maintained in good growing condition. Such maintenance shall 















17.190.060 of the EI Cajon Municipal Code. 

4. The site shall be maintained in a neat and clean manner free of trash and debris. 


shall be visually screened or painted to match surroundings upon installation subject to 





provide a soft "wash" of light against the wall. All building, parking, and yard lights shall 


Standards 17.115.130 (G) and shall complement the site and building architecture.

7. The removal of trees shall not take place during the bird-nesting (breeding) season 

(February 1 through August is), unless written authorization from a qualified biologist 

to proceed with tree removal is submitted to the Planning Division. If clearing is 

proposed to take place during the breeding season, a survey shall be conducted by the 

qualified biologist to determine if nests are present, or nest building or other 

breeding/nesting behavior is occurring. If nesting is not occurring (which includes nest 

building or other breeding/nesting behavior) within this area, clearing shall be allowed 

to proceed. If nesting is occurring (or breeding/nesting behavior is occurring}, tree 


breeding/nesting behavior) has ceased or until after August 15. 



Building Official.

DATE: 

TO: 

FROM: 

J 

P LIe E EPA MENT 

September 30, 20'12 


Via Chief of Police 

U. Mike Moulton 

M MO 

SUBJECT: CUP# 21'13,112 East Madison Ave. 

NDUM 

CUP NO. 2173 

Exhibit 8 - PC Reso, No. 10771 

Police Departmentcomments 





and arrests in this area. The average index total for the 45 Police Districts in EI Cajon 





percentage of alcohol related arrests compared to total arrests in El Cajon was 13.9% 

District 114 has an index of 564, placing it in the "VERY HIGH" category of criminal 


would be considered a "very high" crime area. District 114 had a 22.7% alcohol to total 



addition, the City 01' EI Cajon \5 currently desig n 8t A0 88 8 "Moratorium City" by the 

Department of Alcoholic Beverage Control (ABC) because the ratio of Type 20 (off-sale 

Committed to a Safe 8, Secure Community through, Service, Mutua! Cooperation and Respect

eer and wine) licenses in the City exceeds one for each 2,000 inhabitants. Therefore, 

ABC will not issue new Type 20 licenses in the City of El Cajon and will not allow the 

transfer an existing license into the City, without a finding by the City of public 

convenience or necessity. 

Oversaturation of alcoholic beverage retailers strains City resources aggravating existing 

crime problems and negatively impacts public safety. Based on the Police Department's 

investigation in this particular application, it is not in the public convenience or necessity to 

authorize a new off-sale license on the subject property and it is recommended this 

application be denied. 

Should the City Council choose to grant the CUP over this objection, the Police 

Department would recommend the followinq conditions: 

The CUP applicant be required to purchase two Type 20 licenses within OV8rconcentrated 

census tracts within tile City. Furthermore, one of the licenses shall be 

cancelled with ABC. This action would result in the net reduction of one Type 20 license 

within EI Cajon and no net new licenses within the subject census tract. 

In addition, the Police Department recommends the following conditions: 

1. Sales of alcoholic beverages shall only be permitted between the hours of 10:00 

AM and 11:00 PM. 

2. The petitioner shall be responsible for maintalninq free of litter the area adjacent to 

the premises over which they have control. 

3. No wine shall be sold with an alcoholic content of greater then 15% by volume 

except for "Dinner Wines" which have been aged two years or more. 

4. Beer, wine coolers and other malt beverages cannot be sold by single containers, 

but must be sold in manufacturer pre-packaged multi unit quantities. 

5. There shall be no exterior advertising or sign of any kind or type, including 


availability of alcoholic beverages. Interior displays of alcoholic beverages or signs 

which are clearly visible to the exterior shall constitute a violation of this condition. 

6. A maximum of 10 percent of the retail display area may be devoted to the sale 

and display of alcoholic beverages limited to off-sale beer and wine, non-fortified 

products only. Retail display area includes all floor area within the establishment 

that is accessible and within view of customers, including aisles, and floor area 

. occupied by shelves, counters, and refrigerator coolers. 

Committed to a Safe & Secure Community through, Service, Mutual Cooperation and Respect

g. All dumpsters used by this project shall have lockable lids. All lids on all dumpsters 

shall remain closed while dumpster is not directly in use and locked after business 

hours. 

h. All materials must be stored in a properly covered and contained area 

exposed to rainwater, either directly or indirectly. 

will nolbe 

For Public Works requirements on this Planning Action please refer to the Conditions of 

Approval. This Site Plan may not clearly show existing or proposed improvements in the 

public right-ofway and should not be usedfor public improvement construction purposes. ,l 

B. STORt)'I \VATER REQUIREMENTS AND COrvlIVIENJS (PRIOR TO THE ISSUANCE 

OF ANY BUILDING PERl'VUT \VITH A VALUATION OF $25,000 OR GREATER): 

B-1. Show details of any proposed and existing trash enclosures. Any and all enclosures must be 

designed to be secured, constructed with a grade-break Dr berm across the entire enclosure 

entrance, and covered with an impervious, fire-resistant roof in accordance with the 

requirements of Public Works Storm Water Attachment ND. 2 (available to the public onthe' 

City of El Cajon website or through the Public 'Narks Department on the 4th floor of City 

Hall). See the Building and Fire Safety and Planning Departments for further trash enclosure 

requirements. 

NOTE: FAILURE TO COMPLY \VITH OR IMPLEMENT CUP CONDITIONS IS 

CONSIDERED A VIOLATION OF THE CITY'S JURiVI1) AND MAY RESULT IN A 

CITATION "-''ITl1 MONETARY FINES, CRIMINAL CHARGES, AND/OR REVOCATION 

OF PERMIT. 

B. PRIVATE DEVELOPMENT REQUIRMENTS AND COMJVIENTS REQUIRED WITH 

THIS ACTION: 

B-1. Delete the Alley on the Site Plan. No Alleyexists in that location. 

C. GENERAL: 

Col. An Encroachment Permit is required for any work within the public right-of-way. 

C-2. Repair all damaged curb and gutter and sidewalk. 

DENNIS C. DAVIES 

Deputy Director ofPublic "Varks 

H:\PRIVATE DEV\PLANNING ACTIONS\CUP 2173_1\2 E. Madison Ave.docx 

DATE 

Page 2 of2

CITY 

Adelanto 

Apple Valley 

Barstow 

Big Bear Lake 

Chino 

Chino Hills 

Colton 

Fontana 

Grand Terrace 

Hesperia 

Highland 

Lama Linda 

MORATOPJUlVI 

NO 

NO 

YES 

YES 

YES 

NO 

YES 

NO 

NO 

NO 

NO 

NO 

Effective May 9, 2011 

SAN COUNTY 

CITY 

SAN DIEGO COUNTY 

Montclair 

Needles 

Ontario 

Pomona 

Rancho Cucamonga 

Redlands 

Rialto 

San Bernardino 

Upland 

Victorville 

Yucaipa 

Yucca Valley 

29 Palms 

1\110RATORIUM 

NO 

YES 

YES 

NO 

NO 

NO 

NO 

YES 

NO 

NO 

NO 

YES 

NO 

CITY MORATORIUM CITY MORATORIUM 

Carlsbad NO Lemon Grove NO 

Chula Vista NO National City NO 

Coronado NO Oceanside NO 

Del Mar NO Poway NO 

EI Cajon YES San Diego NO 

Encinitas YES San Marcos NO 

Escondido YES Santee NO 

Imperial Beach NO Solana Beach NO 

La Mesa NO Vista NO 

SAN MATEO COUNTY 

CITY MORATORIUM CITY MORATORIUM 

Atherton YES Menlo Park YES 

Belmont NO Millbrae NO 

Brisbane YES Pacifica NO 

Revised 05/9/11 4

Attachment 7 

Aerial Photograph

City 

Cornmunity Development Department 


DISCLOSURE STATEMENT 

This statement is intended to identify and avoid potential conflicts of interest that may 

exist between the project proponents and the decision makers; including CJy staff 

Planning Commissioners, and City Council members. 

The following information must be disclosed: 

1. List the names and addresses of all persons having a financial interest in the 

application. 

Arkan Somo 

1129 Avenida Del Oceano EI Cajon, CA 92019 

List the names and address of all persons having any ownership interest in the 

property involved. 

Arkan Somo 

i 129 Avenida Del Oceano EI Cajon, CA 920'19 

2. If any person identified pursuant to (1) above is a corporation or partnership, list the 

names and addresses of all individuals owning more than 10% of the shares in the 

corporation or owning any partnership interest in the partnership. 

Arkan Somo 

------------- 

1129 Avenida Del Oceano EI Cajon, CA 92019 

3. If any person identified pursuant to (i) above is a trust, list the name and address of 

any person serving as trustee or beneficiary or trustor of the trust. 

--------._----- 

200 Civic Center Way I El Cajon I California I 92020 I 619-441'1742I'v1ain I 619-441-1743 Fax 

CUP NO. 21"73 

Attachment '10 

Disclosure statement

1. The CUP will be in the 

neighborhood. 

Convenience 

Necessity for all residents and businesses in the 

2. We are proud to have created a with a family atmosphere by adding 

hundreds ofnew grocery items to fulfill the needs ofneighborhoodresidents and their families. We accept 

all forms of EBT (food stamps) and eliminated all adult magazinesand aVDs. 

3. We received vast aillount ofsupport from residents, businesses, and the com m unit)'. Over three hundred 

signatures were collected, many letters of support and No protest were filed with the Departmentof ABC. 

The City WiH benefitfrom taxes generated from visitors who stay at the numerousmotels surrounding 

MagnoliaMarket. When the market had alcoholic beverages 30-35% ofthe revenuescame from those 

visitors. 

HistbricHlly,Magnolia Market had a Type 21 Off-Sale (Liquot) license without any conditions for overforty 

years. 

6; )"odaY,lVlagl1Q[ia Hamily is asking for Type 20 Off-Sale license and we acceptall the recommended 

conditions by El Cajon PoliceDepartmentwith two minor' modifications; 

e Recommendation #:ltb reduce the hoursofopel;atiOl1 for Beer and Wineto S:OOam-12:00am. 

" Recommendatiql1 #4, we will not sale any single container ofBeer,wine coolers-and other malt beverages 

of 16oz, or less and 400z. 

fo/'IagnoliaFamHy Market will further accept fbrcemore selfimposed conditiol1s: 

e 'Thesaleofkeg qe:erwiH be prohibited onthe premises, 

Entertainment uses & amusement devices including video and arcadegames will be prohibited, 

'" Postsigris "No loit

IN TH 

ISSIION M N 

ALVEY responded that analysis was not specified in the Police Department 

comments, but you could make the correlation that crime could go up along with 

the population. 

MROZ asked if the figures outlined on the handout from the applicant were from 

the Police Department. 

ALVEY advised he worked with the applicant and a representative from the 

Police Department to develop the numbers. The applicant had also been in 

contact with the representative. 

MROZ opened the public hearing and invited any speakers to the podium. 

Arkan SOMO, spoke next. He advised that there were a couple of items that 

changed since he was last in front the Commission. Since that time, the City 

Council approved a beer and wine license for the 7-11 Store at Chase and 

Avocado requiring only one existing license be transferred instead of two. He 

then directed the Commissioners to the handouts provided to them and outlined 

the 2010 and 2011 alcohol arrests showing a reduction of 18% related to alcohol. 

He did not dispute that District 114 was in a high crime area, but believed the 

application complied with all conditions except the crime rate. 

SOMO then asked the Commissioners to direct their attention to the crime rates 

relevant to this request, which is for beer and wine. Again, he referred to the 

Police Department breakdown. If the driving under the influence (DUI) and minor 

possession arrests are taken out of the equation, this reduced the total alcohol 

arrests to 10.9%, which is below average for alcohol related arrests. 

SOMO added that he did work with the Police Department representative and 

found that the DUI average arrests were only 7% per district but were much 

higher in this district, which is not directly related to off-sale. He said that the 

improvements in these statistics were because of the work of the Police 

Department, ABC and the business community as a whole. In summary, he was 

in agreement with all conditions of the Police Department with two minor 

exceptions: 1) the change of hours from 8 a.m. to 12 a.m. instead of 10 a.m. to 

11 a.m. and; 2) single sales because craft beers are important to business and 

customers. 

2

10, 2 

M N 

M mentioned the last time this item was before the Commission, SOMO 

was working with the Alliance for Better Community Task Force. One of the 

items they were working on was the transient and public intoxication problems, 

which included a possible "do not sell" list. 

SOMa agreed that he did work closely with this group and when the ABC and 

Police Department sent out the invitation to meet on these issues that every offsale 

licensee was invited and they had over 70% participation. Those who 

attended signed the voluntary pledge. He recalled that the reason they paid 

attention was because the City Council was considering banning all single sales. 

He added that single sales are the biggest sales growth area in their industry, 

including micro brews and craft beers. 

MROZ asked what items were being offered for sale in the store. 

SOMa replied that it is a market selling food items and they are planning to add 

meat as well. They want to be able to provide food products to the community so 

they don't have to go outside the area. 

No other speakers approached the podium. 

Motion was made by CIRCa, seconded by DANKHA, to close the public hearing; 

carried 5-0. 

SOTTILE mentioned that he was pleased to see the alcohol related crime rate 

going in the right direction so what is being done is working, but this location was 

still in a high crime area. He has confidence in the Police Department, who is out 

in the streets of the community every day and, therefore, believe their comments 

are more important than the statistics. He tends to agree with the Police 

Department to not grant approval until the crime rate declines more or stays 

static for a while. 

BALES agreed that the health and safety of our citizens is very important. The 

convenience of having a store close by is great, but she questioned at whose 

convenience. She was in agreement not to approve the project until crime rates 

further decline. Her main concern is the very high crime area. 

MROZ interjected that the City Council approved the 7-11 convenience store, 

which surprised him, since there are three other stores with alcohol sales on the 

surrounding corners. 

3

2 

M 

THE 

BALES suggested that it was approved w""'v""' ... "''''' the location itself is not in a very 

high crime area. 

CIRCa added that the residents are the ones committing the crimes. There are 

a lot of apartment buildings in the area and this is the perfect place to put a 

market to serve them. But you also have a greater concentration of people who 

commit crimes. There tends to be more turnover and not as much buy-in to 

neighborhood. A market would be more convenient for these residents. 

SOTTILE added he did his own calculation and found there were 31 incidences 

due to disorderly conduct related to alcohol. 

MROZ praised the applicant for his efforts in promoting awareness to reduce 

alcohol-related crimes in the area. 

CIRCa also added he liked what he was seeing in the district and credited 

SOMa for his active participation in reducing crime and getting business owners 

more aware of what's happening in the area. He would like to find in favor of the 

project, but was not aware the census had reduced the number of licenses in the 

district. There are currently three licenses in this district and three are the limit, 

therefore, he could not approve granting the license. 

MORZ asked staff for an explanation of the moratorium. 

ALVEY replied that the City currently is in moratorium status, which means we 

have an overconcentration of licenses based on the ratio of one license per 

2,500 residents. This can also be broken down on a census tract level. The 

overall concentration level on tract by tract basis is basically a guideline. The 

Planning Commission and City Council do have the authority to override and 

agree to the issuance of an additional license if it would serve the public 

convenience and necessity. 

BALES added that SOMa had done a great job working with the community in 

reducing the crime rates, but believed the residents would prefer to drive to 

markets outside the area versus walking to this location, due to the high crime 

rate in the area. 

SOTTILE agreed that much headway had been accomplished in the past year, 

but felt that many residents would drive out of area to go to a market. 

4

MI TH 

LANNING COMMISSION MEETIN 

Ikn IL.. "'-hEM 1 

Motion was made by BALES, seconded by SOTTILF, to adopt Resolution 

NO.1 0711, denying Conditional Use Permit No. 2173; carried 3-2 (BALES, 

SOTTILE and DANKHA; CIRCO and MROZ). 

The appeal for this item ends at 5:30 p.m., Thursday, December 20,2012. 

5

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