PBID Advisory Board Agenda

Transcription

1 PBID Advisory Board Agenda Tuesday, February 10, 2015, 3:00 p.m. 401 B Street, Suite 100, San Diego, CA Meeting Called To Order 1. Action Item: Approval of Minutes for January 12, 2015 (pages 2 3) Non Agenda Public Comment 2. Guest Speaker: Christina Chadwick, VP of Communications PBID 2015 Communications & Media Plan 3. Executive Director Report a. Info Item: Community Meetings 4. Operations Report a. Info Item: Palm Tree Update b. Info Item: Graffiti Abatement Program 5. Homeless Outreach Report (pages 4-5) a. Info Item: WeAllCount Recap 6. Info Item: Luis Ojeda / Elizabeth Studebaker, Economic Development Department 7. Info Item: Richard Seges, Assistant VP Neighborhood Reinvestment, Civic San Diego 8. Budget / Assessments Report a. Action Item: Accept December 2014 Financials (pages 6-13) b. Info Item: Status of Financial Information from the City of San Diego 9. PBID/BID Audit: PBID/BID FY14 Audit (Handout) 10. Member Discussion Adjourn THIS INFORMATION IS AVAILABLE IN ALTERNATIVE FORMATS UPON REQUEST. To request an alternative format or to request a sign language or oral interpreter for the meeting, please contact the Clean & Safe Program office at least five (5) working days before the meeting at (619) to ensure availability. Assistive Listening Devices (ALDs) are available for the meeting upon advanced request. Page 1 of 13

2 Call to Order The meeting was called to order by Claudine Scott at 3:00 p.m. PBID Advisory Board Meeting Minutes Tuesday, January 13, :00 p.m. 401 B Street, Suite 100, San Diego, CA The following PBID Board Members were present: Claudine Scott, Glenna Schmidt, Michele Addington, Barbara Daly, Bill Sauls, Chris Eddy, Diana Clark, Joan Wojcik, Ken Victor and Larry L.C Cline. The following PBID Members were absent: Elizabeth Studebaker and Luis Ojeda The following staff members were present: Bahija Hamraz, John Hanley, Kelly Knight, Lucky Michael, Alonso Vivas, Alex Gutierrez, Greg Parkington and Lise Koerschgen The following members of the public were present: Jeff Zinner, Anthony Bernal, Kalie Standish and Kathy Casey Approval of Minutes Ms. Scott asked for comments and approval. Motion: to approve November 4, 2014 minutes. By: Michele Addington. Seconded By: Glenna Schmidt. Diana Clark, Joan Wojcik, Chris Eddy and Ken Victor abstained. November 4, 2014 Minutes Ammendment: Let the record show Diana Clark, Joan Wojcik, Chris Eddy & Ken Victor was present at November 4, 2014 PBID Advisory Board Meeting. Non Agenda Public Comment No Public Comment Guest Speaker Captain Charles Kaye Captain Charles Kaye, Central Division, San Diego Police Department introduced himself and explained some of the challenges they are facing, like understaffing. He explained the police department wants to have better communication with the organization and would like to create an atmosphere of education and coordinated enforcement. Executive Director Report Bahija Hamraz Welcome Ketra Carter Ms. Hamraz welcomed Ketra Carter to the Clean & Safe Outreach team. Special Projects Greg Parkington gave an update on the tree lights on C Street. Mr. Parkington also gave an update on the Gaslamp tree lights, which has had sensor issues but the operations team is resolving it. Alonso Vivas discussed the staff increase which included 2 Tom Cat drivers, 2 Rovers and more safety ambassadors in Core, Gaslamp Quarter & East Village. These changes will result in more coverage and personal contact with property owners. Page 2 of 13

3 Operations Report Alex Gutierrez Gum Removal Project Update Mr. Gutierrez gave an update on the gum removal pilot program that happened in November. The program lasted 1 week and it took 4 people to clean 9 sidewalks. Mr. Gutierrez described the system they used, the set up and the safety procedures Doggy Bag Station Update Mr. Gutierrez described the new doggy bag stations. The stations will have a single key lock and hold 600 bags each. The Clean & Safe team will start changing out the stations in mid-february. Ken Victor suggest the bags read Thank you for cleaning up after your dog. Homeless Outreach Report Kelly Knight Homeless Count Ms. Knight Points out that the numbers are up from last month but slightly down in East Village. Detox Bed Lucky Michael discussed the success regarding the detox bed. In collaboration with SDPD they have placed 2 clients successfully and both are currently in transitional housing. Permanent Indoor Homeless Shelter Ms. Knight explains today was the deadline for the RFP for the permanent indoor homeless shelter. A day center will be attached to the facilities and will provide case management and provisions. The location will depend on each proposal and the facility will be funded by the city. As a PBID we will not take a stand on the issue. City of San Diego Economic Development Department Update Luis Ojeda/Elizabeth Studebaker Not in attendance. Civic San Diego Update Jeff Zinner Neighborhood Reinvestment, Civic San Diego Jeff Zinner gives an update on projects in Downtown. Celadon should be done next month. Atmosphere at 4 th & Beech will begin construction in March. Signage program bids are due January 27 th. The EV Green kick off meeting is this week and 14 th Promenade will follow shortly. The first Pinnacle tower should be completed in late spring and will be followed by construction on the second tower. Director of Finance Report John Hanley Mr. Hanley reviewed the October & November 2014 financials and variances. Motion: To accept the October & November 2014 monthly financials. By: Michele Addington. Seconded By: Glenna Schmidt. Accepted unanimously. Member Discussion Claudine Scott reminds everyone about the upcoming annual neighborhood meetings. Adjourn The meeting was adjourned by Claudine Scott at 4:10 p.m. Page 3 of 13

4 Clean & Safe Program Homeless Outreach Monthly Report January 2015 A GREAT START TO A NEW YEAR! The Clean & Safe Homeless Outreach staff had an eventful start to the New Year. We were proud to cohost the annual Point In Time Count with the Regional Task Force on the Homeless. The team also participated in Project Homeless Connect an annual resource event held at the San Diego Civic Center. Silas s Story Silas came to Project Homeless Connect hoping to learn more about resources that he can get connected to. Silas stopped by the Clean & Safe Homeless Outreach booth intrigued by the name of the program. Upon learning about the services that the program offered he explained his situation. Silas disclosed that he was struggling with heroin addiction and was looking to get clean and safe himself. Clean from substance dependence and Safe from the streets that perpetuated his addiction. The team quickly developed a plan with Silas which included immediate placement into shelter for the night and coordinated placement into a treatment program the next day. Silas is still in treatment and working on his recovery. This story captures the dedication of the Clean & Safe Homeless Outreach staff and the San Diego Police Department Homeless Outreach Team In January the W ork Y our W ay Home program assisted 31 people return to family and other systems of support. Page 4 of 13

5 Homeless Outreach Monthly Report Monthly Homeless Counts East Village Core Columbia Marina Cortez Gaslamp Monthly Totals: Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Connections Housing Outreach 101 Because you asked, here are the breakout numbers: COLUMBIA 47 CORE Average Downtown 2014 IOT Street Placement Outcomes Individuals Shelter Placement Referred to Social Services Alcohol and Drug Treatment Placements Transported to CMH/Psychiatric Hospital Transitional Housing Connected with Permanent Supportive Housing Total Partnering Agencies Page 5 of 13

6 PBID Financial Variance Report December 2014 Budget vs. Actual: Income: Assessments were budgeted at $506, vs. an actual of $468, Park Reimbursements were budgeted at $1, and the actual was $1, Interest Income was budgeted at $11.67 vs. an actual of $ Expenses: Salaries and wages was under $12, due to staffing. Employee Benefits due to the timing of an additional Workers Comp payment, year to date we are under budget. Contractors Services was under 26, due to the timing of trimming palm trees. Budgeted in December and should be trimmed in Janaury. Page 6 of 13

7 December 14 Budget vs. Actual Description Dec-14 Dec-14 Difference Income Budget Actual Assessments (Reimbursements) 506, , (38,760.75) City - Park (Reimbursements) 1, , Interest Income: Total Income: 508, , (38,743.31) Expenses GL# Office Supplies Postage/Mailing (50.00) District Mailings/Web Services Cleaning & Janitorial 12, , (140.02) Dry Goods/Wearing Apparel , Vehicle Repairs/Other Maintenance 4, , (2,048.40) Vehicle Fuel 5, , (1,315.72) Audit Services (accounting / bookeeping) Insurance (Vehicle insurance) Lightpole/Trashcan/Misc 1, (1,812.50) Leasing/Purchase 1, (675.00) Payroll Services/Parking/Misc 2, , Rents/Leases 8, , (67.98) Training (500.00) Travel (120.00) Photocopy (Copy & Printing) (Office Copier) , Fidelity & General Insurance Workers Comp/Employee Benefits 63, , , Salaries & Wages 167, , (12,248.01) Contractor Services 197, , (26,593.77) Program Oversight 6, , Waste removal ( refuse disposal) 5, , Telephone Cellular phone/data Entry 1, , (13.50) Electric Services 3, , (595.37) Water Serv-Incl Hydr Rent 1, , (619.09) Legal Expenses (500.00) Sub-Total (reimbursable) 484, , (38,760.75) Transfer (City Admin Charges) 10, , Spec Dist Lighting 12, , Sub-Total: 23, , Total Expenses: $ 508, $ 469, $ (38,760.75) Net Income: $ $ Page 7 of 13

8 July - Dec 14 Budget vs. Actual Description July - Dec -14 July - Dec -14 Difference Income Budget Actual Assessments (Reimbursements) 3,038, ,965, (73,107.70) City - Park (Reimbursements) 5, , , Interest Income: Total Income: 3,044, ,988, (56,056.87) Expenses GL# Office Supplies 2, , , Postage/Mailing (77.76) District Mailings/Web Services 3, , Cleaning & Janitorial 77, , , Dry Goods/Wearing Apparel 4, , (1,242.49) Vehicle Repairs/Other Maintenance 25, , (5,097.91) Vehicle Fuel 30, , , Audit Services (accounting / bookeeping) 18, , (62.44) Insurance (Vehicle insurance) 17, , (5,838.20) Lightpole/Trashcan/Misc 27, , (936.95) Leasing/Purchase 4, , , Payroll Services/Parking/Misc 12, , , Rents/Leases 48, , (248.33) Training 2, (2,000.00) Travel (480.00) Photocopy (Copy & Printing) (Office Copier) 2, , Fidelity & General Insurance 105, , Workers Comp/Employee Benefits 395, , (18,461.28) Salaries & Wages 994, , (55,993.30) Contractor Services 997, , (5,256.15) Program Oversight 36, , Waste removal ( refuse disposal) 31, , , Telephone 1, , Cellular phone/data Entry 9, , (2,361.50) Electric Services 19, , Water Serv-Incl Hydr Rent 20, , , Legal Expenses 3, , (1,100.00) Sub-Total (reimbursable) 2,889, ,833, (56,094.28) Transfer (City Admin Charges) 65, , Spec Dist Lighting 90, , Sub-Total: 155, , Total Expenses: $ 3,044, $ 2,988, $ (56,094.28) Net Income: $ $ Page 8 of 13

9 3:16 PM 01/15/15 Accrual Basis Downtown San Diego Partnership - PBID Profit & Loss December 2014 Dec 14 Ordinary Income/Expense Income 4020 Assessments (Reimbursements) 444, Assessments (Other) 4030 Lighting Income - Uncollected 12, City Admin Fee - Uncollected 10, Total 4021 Assessments (Other) 23, City - Park Reimbursement 1, Interest Income Total Income 469, Gross Profit 469, Expense Office Supplies District Mailings/ Web Services Cleaning & Janitorial Supplies 12, Dry Goods/ Wearing Apparel 1, Vehicle Repair/Other Maint Vehicle Fuel 3, Vehicle Repair/Other Maint - Other 2, Total Vehicle Repair/Other Maint 5, Leasing / Purchasing (Equip.) Payroll Services/Parking/Misc 2, Rents / Leases 8, Photocopy (Office Copier) 1, Emp Benefits/Insurance 4254 Payroll Taxes 13, Vacation-PTO 6, Workers' Comp 33, Other Ins. / Other Benefits 14, Total Emp Benefits/Insurance 68, Salaries & Wages 154, Contractor Services 170, Program Oversight 6, Waste Removal (Refuse Disp) 6, Telephones Cell Phones/Data Entry 1, Electric Services 2, Water Services 1, Total Expense 446, Net Ordinary Income 23, Other Income/Expense Other Expense Lighting Expense 12, City Admin Expenses 10, Non City Related 0.00 Total Other Expense 23, Net Other Income -23, Net Income Page 9 of 13

10 3:18 PM 01/15/15 Accrual Basis Downtown San Diego Partnership - PBID Profit & Loss July through December 2014 Jul - Dec 14 Ordinary Income/Expense Income 4020 Assessments (Reimbursements) 2,809, Assessments (Other) 4030 Lighting Income - Uncollected 90, City Admin Fee - Uncollected 65, Total 4021 Assessments (Other) 155, City - Park Reimbursement 24, Interest Income Total Income 2,988, Gross Profit 2,988, Expense Office Supplies 5, Postage & Mailing District Mailings/ Web Services 3, Cleaning & Janitorial Supplies 80, Dry Goods/ Wearing Apparel 2, Vehicle Repair/Other Maint Vehicle Fuel 32, Vehicle Repair/Other Maint - Other 20, Total Vehicle Repair/Other Maint 52, Audit Services (Accounting) 17, Vehicle Insurance 11, Leasing / Purchasing (Equip.) Lightpole/Trash Can Main/Misc 26, Leasing / Purchasing (Equip.) - Other 17, Total Leasing / Purchasing (Equip.) 44, Payroll Services/Parking/Misc 15, Rents / Leases 48, Photocopy (Office Copier) 3, Fidelity & Gen. Liability Ins. 105, Emp Benefits/Insurance 4254 Payroll Taxes 81, Vacation-PTO 38, Workers' Comp 144, Other Ins. / Other Benefits 112, Total Emp Benefits/Insurance 376, Salaries & Wages 938, Contractor Services 992, Program Oversight 36, Waste Removal (Refuse Disp) 34, Telephones 1, Cell Phones/Data Entry 6, Electric Services 20, Water Services 34, Legal Expenses 1, Total Expense 2,833, Net Ordinary Income 155, Other Income/Expense Other Expense Lighting Expense 90, City Admin Expenses 65, Non City Related 0.00 Total Other Expense 155, Net Other Income -155, Net Income Page 10 of 13

11 2:41 PM 01/15/15 Accrual Basis Downtown San Diego Partnership - PBID Profit & Loss by Class December 2014 Marina Cortez E Village Gaslamp Core Core Gaslamp E Village Cortez Marina Zone 10 Zone 9 Zone 8 Zone 7 Zone 6 Total Safety Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Total Maint TOTAL Office Supplies District Mailings/ Web Services Cleaning & Janitorial Supplies , , , , , , , Dry Goods/ Wearing Apparel , , Vehicle Repair/Other Maint Vehicle Fuel , , , , Vehicle Repair/Other Maint - Other , , Total Vehicle Repair/Other Maint , , , , , Leasing / Purchasing (Equip.) Payroll Services/Parking/Misc , , Rents / Leases , , , , , Photocopy (Office Copier) , , Emp Benefits/Insurance 4254 Payroll Taxes , , , , , , , Vacation-PTO , , , , , Workers' Comp , , , , , , , Other Ins. / Other Benefits , , , , , , , Total Emp Benefits/Insurance , , , , , , , Salaries & Wages , , , , , , , Contractor Services 7, , , , , , , , , , , , , Program Oversight , , , , , Waste Removal (Refuse Disp) , , , , , Telephones Cell Phones/Data Entry , , Electric Services , , , Water Services , , , , , , , , , , , , , , , Parks Deduction: (452.04) (119.52) (262.46) (56.28) (287.20) (1,177.50) Total Reimbursement Due: 7, , , , , , , , , , , , , Page 11 of 13

12 2:46 PM 01/15/15 Accrual Basis Downtown San Diego Partnership - PBID Profit & Loss by Class July through December 2014 Marina Cortez E Village Gaslamp Core Core Gaslamp E Village Cortez Marina Zone 10 Zone 9 Zone 8 Zone 7 Zone 6 Total Safety Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Total Maint TOTAL Office Supplies , , , , Postage & Mailing District Mailings/ Web Services , , Cleaning & Janitorial Supplies , , , , , , , Dry Goods/ Wearing Apparel , , Vehicle Repair/Other Maint Vehicle Fuel , , , , , , , Vehicle Repair/Other Maint - Other , , , , , , , Total Vehicle Repair/Other Maint , , , , , , , Audit Services (Accounting) , , , , , , , Vehicle Insurance , , , , , , , Leasing / Purchasing (Equip.) Lightpole/Trash Can Main/Misc , , , , , Leasing / Purchasing (Equip.) - Other , , , , , , , Total Leasing / Purchasing (Equip.) , , , , , , , Payroll Services/Parking/Misc , , , , , , , Rents / Leases , , , , , , , Photocopy (Office Copier) , , , Fidelity & Gen. Liability Ins , , , , , , , Emp Benefits/Insurance 4254 Payroll Taxes , , , , , , , Vacation-PTO , , , , , , , Workers' Comp , , , , , , , Other Ins. / Other Benefits , , , , , , , Total Emp Benefits/Insurance , , , , , , , Salaries & Wages , , , , , , , Contractor Services 47, , , , , , , , , , , , , Program Oversight , , , , , , , Waste Removal (Refuse Disp) , , , , , , , Telephones , , Cell Phones/Data Entry , , , , , Electric Services , , , , , , , Water Services , , , , , , , Legal Expenses , , , , , , , , , , , , , ,347, ,833, Parks Deduction: (9,243.69) (2,443.97) (5,367.06) (1,150.93) (5,872.77) (24,078.42) Total Reimbursement Due: 47, , , , , , , , , , , ,322, ,809, Page 12 of 13

13 3:20 PM 01/15/15 Accrual Basis Downtown San Diego Partnership - PBID Balance Sheet As of December 31, 2014 Dec 31, 14 ASSETS Current Assets Checking/Savings 1014 Savings , New Checking , Total Checking/Savings 415, Accounts Receivable 1200 Accounts Receivable 869, Total Accounts Receivable 869, Other Current Assets 1210 Allowance for Doubtful Accts 1, Security Deposit 5, Total Other Current Assets 7, Total Current Assets 1,292, Fixed Assets 1600 Furniture and Fixtures 52, Computer Equipment 40, Automobiles 343, PowerWashers 128, Equipment 196, Accumulated Depreciation -588, Total Fixed Assets 173, TOTAL ASSETS 1,465, LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 2000 Accounts Payable 149, Total Accounts Payable 149, Other Current Liabilities 2062 Uncleared Trans Old Bank Accts. 2, Payroll Suspense Accrued Payroll 27, Accrued Vacation & PTO 83, Accrued Payroll Taxes 2, Other Accrued Expenses 71, Advances from City 817, Deferred Revenue 20, Deferred Rent 7, Total Other Current Liabilities 1,031, Total Current Liabilities 1,180, Total Liabilities 1,180, Equity 3900 Net Assets 285, Net Income Total Equity 285, TOTAL LIABILITIES & EQUITY 1,465, Page 13 of 13 Page 1 of 1

14 Downtown San Diego Partnership Financial Statements (With Supplementary Information) and Independent Auditor's Report June 30, 2014 and 2013

15 Downtown San Diego Partnership Index Page Independent Auditor's Report 2-3 Statements of Financial Position 4 Statements of Activities 5 Statements of Cash Flows 6 Notes to Financial Statements 7-11 Independent Auditor's Report on Supplementary Information 12 Supplementary Information: Statements of Financial Position - Downtown Partnership 13 Statements of Activities - Downtown Partnership 14 Statements of Financial Position - PBID 15 Statements of Activities - PBID 16 Financial Statement Reconciliation to Final City Invoice 17 Statement of Compliance 18 Budget Versus Actual - PBID 19 1

16 Independent Auditor's Reportt To the Board of Directors Downtown San Diego Partnership We have audited the accompanying financial statements of Downtown San Diego Partnershipp (the "Partnership"), which comprise the statements of financial position as of June 30, and 2013, and the related statements of activitiess and cash flows for the years then ended, and the related notes to the financial statements. Management s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of o America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation n of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these financial statementss based on our audits. We conducted our audits in accordance with auditing standards generally accepted in thee United States of America. Those standards require that we plan and perform the audit too obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts andd disclosures in the financial statements s. The procedures selected depend on the auditor ss judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity ss preparation and fair presentation of thee financial statements in order to design audit procedures that are appropriate in thee circumstances, but not for the purpose of expressing an opinion on the effectiveness of thee entity s internal control. Accordingly, we express no such opinion. An audit also includess evaluating the appropriateness of accounting policies used and the reasonableness of o significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 2

17 Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Downtown San Diego Partnership as of June 30, 2014 and 2013, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. C San Diego, California November 5,

18 Downtown San Diego Partnership Statements of Financial Position June 30, 2014 and 2013 Assets Cash and cash equivalents $ 830,769 $ 748,907 Accounts receivable, net 890,209 1,058,043 Prepaid expenses and other assets 78, ,989 Equipment and leasehold improvements, net 191, ,586 Total assets $ 1,991,076 $ 2,082,525 Liabilities and Net Assets Liabilities: Accounts payable $ 190,849 $ 314,853 Accrued expenses 250, ,377 PBID advance from the City of San Diego 817, ,000 Deferred rent 14,580 19,844 Deferred revenue 360, ,627 Total liabilities 1,633,154 1,611,701 Commitments and contingencies Unrestricted net assets 357, ,824 Total liabilities and net assets $ 1,991,076 $ 2,082,525 See Notes to Financial Statements. 4

19 Downtown San Diego Partnership Statements of Activities Years Ended June 30, 2014 and Revenue and other income: PBID assessments and parks reimbursements $ 5,405,051 $ 5,130,258 Membership dues and renewals 530, ,375 Special events 566, ,773 Transit pass program 441, ,609 BID income 81,052 71,042 Banner 35,550 35,650 Other income - 9,400 Interest income 892 1,096 Total revenue and other income 7,060,796 6,706,203 Expenses: Programs: PBID 5,380,212 5,016,265 Downtown San Diego Partnership 840, ,539 BID 56,052 56,490 Management and general 642, ,249 Special events - costs of direct benefits to donors 138, ,952 Special events - other expenses 115, ,759 Total expenses 7,173,698 6,733,254 Change in net assets (112,902) (27,051) Unrestricted net assets: Beginning of year 470, ,875 End of year $ 357,922 $ 470,824 See Notes to Financial Statements. 5

20 Downtown San Diego Partnership Statements of Cash Flows Years Ended June 30, 2014 and Operating activities: Change in net assets $ (112,902) $ (27,051) Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 60,738 47,677 Deferred rent (5,264) 8,534 Changes in operating assets and liabilities: Accounts receivable 167,834 (97,373) Prepaid expenses and other assets 34,585 (26,944) Accounts payable (124,004) 46,869 Accrued expenses 101,330 33,239 Deferred revenue 49,391 64,626 Net cash provided by operating activities 171,708 49,577 Investing activities: Purchases of equipment (93,946) (86,718) Proceeds on sale of equipment 4,100 - Net cash used in investing activities (89,846) (86,718) Increase (decrease) in cash and cash equivalents 81,862 (37,141) Cash and cash equivalents: Beginning of year 748, ,048 End of year $ 830,769 $ 748,907 See Notes to Financial Statements. 6

21 Downtown San Diego Partnership Notes to Financial Statements June 30, 2014 and 2013 Note 1 - Organization and summary of significant accounting policies Nature of organization Downtown San Diego Partnership (the "Partnership"), a not-for-profit California corporation, was formed in 1993 with the merger of two prominent business associations: San Diegans, Inc. and the Central City Association. Today, the Partnership has approximately 250 members and has emerged as the leading advocate for economic growth and revitalization of downtown San Diego. The Partnership works closely with regional business organizations and the City of San Diego (the "City") to improve the business climate for downtown San Diego and to help shape policies on issues affecting downtown. Its mission is the advancement of downtown as the economic, cultural and governmental center of the San Diego region through leadership, advocacy and education. Financial statement presentation The Partnership reports information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets. Unrestricted net assets represent expendable funds available for operations, which are not otherwise limited by donor restrictions. Contributions received with donor-imposed restrictions that are satisfied within the same reporting period are reported as unrestricted support in that period. Temporarily restricted net assets consist of contributed funds subject to specific donor-imposed restrictions contingent upon specific performance of a future event, or a specific passage of time before the Partnership may spend the funds. Permanently restricted net assets are subject to irrevocable donor restrictions requiring that the assets be maintained in perpetuity, usually for generating investment income to fund current operations. At June 30, 2014 and 2013, the Partnership did not have any temporarily restricted or permanently restricted net assets. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Concentrations of credit risk Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable. The Partnership maintains its cash accounts in several high-quality financial institutions. At June 30, 2014, the Partnership had approximately $326,000 in cash and cash equivalents which exceeded Federally insured limits. The Partnership received approximately 76% of its total revenue from the City for the years ended June 30, 2014 and At June 30, 2014 and 2013, 96% and 98%, respectively, of the accounts receivable balance was due from the City. 7

22 Downtown San Diego Partnership Notes to Financial Statements June 30, 2014 and 2013 Cash and cash equivalents The Partnership considers all highly-liquid investments with an original maturity date of three months or less when acquired to be cash equivalents. Accounts receivable and allowance for doubtful accounts Accounts receivable consist of amounts billed and unbilled for services provided through the end of the fiscal year. An allowance for estimated uncollectible accounts is based on past experience and on an analysis of current accounts receivable balances. Accounts deemed uncollectible are written off in the year deemed uncollectible. Equipment and leasehold improvements Equipment and leasehold improvements are stated at cost, if purchased, or fair value at the date of donation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the remaining life of the lease or useful life of the asset, whichever is shorter. The Partnership capitalizes assets which cost or have a donated value of $1,000 or more. Estimated useful lives, by major classification, are as follows: Vehicles 4-5 years Furniture and equipment 5-7 years Computer equipment 5 years Leasehold improvements Shorter of useful life or term of lease Impairment of long-lived assets The Partnership evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. If the estimated future cash flows (undiscounted and without interest charges) from the use of an asset are less than the carrying value, a write-down will be recorded to reduce the related asset to its estimated fair value. To date, no such write-downs have occurred. Revenue recognition The City (Property and Business Improvement District ("PBID") Assessments) and other sources of revenue Revenue from City reimbursements is recognized monthly in the period in which contracted and operating expenses are recognized, including the maintenance and repair of one public water feature. Membership dues and renewals Revenue from memberships is recognized using the straight-line method over the term of the membership. The unearned portion of membership revenue is reported as deferred revenue. 8

23 Downtown San Diego Partnership Notes to Financial Statements June 30, 2014 and 2013 Transit pass program Revenue from transit pass sales is recognized when the passes are picked up or shipped to the customer. Revenue is recorded net of any discounts or returns. Contributed services and materials Contributed services are recognized as contributions if the services (a) create or enhance non-financial assets, or (b) require specialized skills, are performed by people with those skills and would otherwise be purchased. Volunteers also provide services throughout the year that are not recognized as contributions in the financial statements since the required recognition criteria were not met. Contributed materials and other assets are recorded as contributions at their estimated fair values at the date of receipt. No such contributions were received for the years ended June 30, 2014 and Functional allocation of expense The costs of providing the various programs and other activities have been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited. Income taxes The Partnership, a California nonprofit corporation, is exempt from Federal and state income taxes under Section 501(c)(6) of the Internal Revenue Code and Section 23701(e) of the California Code. Income tax benefits and/or liabilities are recognized for income tax positions taken or expected to be taken in a tax return, only when it is determined that the income tax position will more-likely-than-not be sustained upon examination by taxing authorities. The Partnership has analyzed the tax positions taken in its filings with the Internal Revenue Service and the California Franchise Tax Board. The Partnership believes that its income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on the Partnership s financial condition, results of operations or cash flows. Accordingly, the Partnership has not recorded any reserves, or related accruals for interest and penalties for uncertain income tax positions at June 30, 2014 or The Partnership s U.S. Federal and state income tax returns prior to fiscal years 2011 and 2010, respectively, are closed. Management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. Reclassifications Certain amounts in the 2013 financial statements have been reclassified to conform to the 2014 presentation. Subsequent events Subsequent events have been evaluated through November 5, 2014, which is the date the financial statements were available to be issued. 9

24 Downtown San Diego Partnership Notes to Financial Statements June 30, 2014 and 2013 Note 2 - Accounts receivable At June 30, 2014 and 2013, accounts receivable consists of: City $ 851,984 $ 1,029,735 Other 40,285 29, ,269 1,059,166 Less allowance for doubtful accounts 2,060 1,123 $ 890,209 $ 1,058,043 Note 3 - Equipment and leasehold improvements At June 30, 2014 and 2013, equipment and leasehold improvements consists of: Vehicles $ 343,174 $ 315,866 Furniture and equipment 406, ,546 Computer equipment 70,641 40,155 Leasehold improvements 21,050 21, , ,617 Less accumulated depreciation and amortization 649, ,031 $ 191,694 $ 162,586 Depreciation and amortization expense was $60,738 and $47,677 for the years ended June 30, 2014 and 2013, respectively. Note 4 - PBID contract The Partnership has a ten-year agreement with the City to run the PBID program through June 30, In connection therewith, the Partnership received an $817,000 noninterest bearing advance from the City. This advance must be repaid by June 30, 2015, the end of the current contractual period. The Partnership is in the final stages of negotiating an extension of the PBID program for another ten-year period. To operate the PBID program, the City assesses certain taxes over property owners in Downtown San Diego. These PBID assessment funds are held by the City to be used against future reimbursements for the PBID program, and are not included on the Partnership s statements of financial position. As of June 30, 2014, these funds totaled approximately $1,123,

25 Downtown San Diego Partnership Notes to Financial Statements June 30, 2014 and 2013 Note 5 - Commitments and contingencies Operating leases The Partnership leases its office facilities under non-cancelable operating leases. These leases expire in fiscal year The minimum annual rentals under these leases are being charged to expense on a straight-line basis over the lease terms. Deferred rent as of June 30, 2014 and 2013 was $14,580 and $19,844, respectively. The Partnership entered into a new lease on July 1, 2010 which includes $15,160 of tenant incentives, which are being amortized over the life of the lease. Future minimum lease commitment under these agreements for the year subsequent to June 30, 2014 is $167,685. Total rent expense for the years ended June 30, 2014 and 2013 was $182,949 and $190,017, respectively. Grants and contracts The Partnership has $9,000 of grants and $5,486,103 of contracts with government agencies which are subject to audit for the year ended June 30, As of June 30, 2014, no such audits have been performed. No provision has been made for any liabilities that may arise from such audits since the amounts, if any, cannot be determined. The Partnership believes that any liability which may result from these audits would not be material. 11

26 Independent Auditor's Reportt on Supplementaryy Information To the Board of Directors Downtown San Diego Partnership Our report on our audits of the basic financial statements of Downtown San Diego Partnershipp appears on pages 2-3. Those audits were conducted for the purpose of forming an opinion onn the financial statements as a whole. The supplementary information on pages 13 through 17 iss presented for purposes of additional analysis and is not a required part of the financial statements. Such information n is the responsibility of management and was derived from andd relates 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 thee audits of the financial statements and certain additional procedures, including comparing andd reconciling such information directly to the underlying accounting and other records used too prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with the auditing standards generally accepted in the United Statess of America. In our opinion, the information is fairly stated in all material respects in relation too the financial statements as a whole. The supplementary information on page 18, which is the responsibility of management, is of a nonaccounting nature and the supplementary information on page 19 which is markedd "unaudited" has not been subjected to the auditing procedures applied in the audit of the financial statements. Accordingly, we do not express an opinion or provide any assurance onn it. C San Diego, California November 5,

27 Downtown San Diego Partnership Supplementary Information Statements of Financial Position - Downtown Partnership June 30, 2014 and 2013 Assets Cash and cash equivalents $ 454,785 $ 415,255 Accounts receivable, net 38,225 27,371 Prepaid expenses and other assets 31,406 26,709 Equipment and leasehold improvements, net 18,682 6,461 Total assets $ 543,098 $ 475,796 Liabilities and Net Assets Liabilities: Accounts payable $ 39,246 $ 46,570 Accrued expenses 63,599 54,152 Deferred rent 7,508 12,772 Deferred revenue 360, ,627 Total liabilities 470, ,121 Unrestricted net assets 72,727 51,675 Total liabilities and net assets $ 543,098 $ 475,796 See Independent Auditor's Report on Supplementary Information. 13

28 Downtown San Diego Partnership Supplementary Information Statements of Activities - Downtown Partnership Years Ended June 30, 2014 and Revenue and other income: Membership dues and renewals $ 530,544 $ 498,375 Special events 566, ,773 Transit pass program 457, ,449 BID income 81,052 71,042 PBID income 72,000 72,000 Banner 35,550 35,650 Other income - 9,400 Interest income Total revenue and other income 1,743,413 1,663,403 Expenses: Salaries, wages and payroll taxes 591, ,870 Special events 254, ,712 Transit pass program 417, ,262 Rent 89, ,661 Miscellaneous 27,633 79,977 Employee benefits 35,214 36,441 Contract renewal - PBID 47,292 91,092 Marketing 47,571 57,139 BID expenses 56,052 56,490 Downtown business attraction - 9,963 Membership and corporate events 18,609 14,096 Insurance 20,234 17,748 Automobile 9,842 8,477 Utilities 11,274 11,351 Office supplies 8,693 7,642 Legal and accounting 71,626 18,214 Depreciation 2,245 2,024 Postage Dues and subscriptions 12, Banner Total expenses 1,722,361 1,716,989 Excess (deficiency) of revenue and other income over expenses $ 21,052 $ (53,586) See Independent Auditor's Report on Supplementary Information. 14

29 Downtown San Diego Partnership Supplementary Information Statements of Financial Position - PBID June 30, 2014 and 2013 Assets Cash and cash equivalents $ 375,984 $ 333,652 Accounts receivable, net 851,984 1,030,672 Prepaid expenses and other assets 46,998 86,280 Equipment and leasehold improvements, net 173, ,125 Total assets $ 1,447,978 $ 1,606,729 Liabilities and Net Assets Liabilities: Accounts payable $ 151,603 $ 268,283 Accrued expenses 187,108 95,225 PBID advance from the City of San Diego 817, ,000 Deferred rent 7,072 7,072 Total liabilities 1,162,783 1,187,580 Unrestricted net assets 285, ,149 Total liabilities and net assets $ 1,447,978 $ 1,606,729 See Independent Auditor's Report on Supplementary Information. 15

30 Downtown San Diego Partnership Supplementary Information Statements of Activities - PBID Years Ended June 30, 2014 and Revenue and other income: PBID assessments and parks reimbursement $ 5,405,051 $ 5,130,258 Interest income Total revenue and other income 5,405,223 5,130,640 Expenses: Contractual services 1,923,509 2,012,290 Salaries, wages and payroll taxes 2,010,205 1,780,700 Employee benefits 433, ,186 Utilities 156, ,548 Repairs and maintenance 111, ,560 Rent 93,781 87,356 Insurance 111, ,919 Cleaning and janitorial supplies 123, ,872 Miscellaneous 88,754 43,327 Depreciation 58,494 45,653 Legal and accounting 108,251 19,081 Uniforms 11,769 6,361 Office supplies 7,440 8,711 Equipment outlay 298, ,648 Travel and training 1,021 1,244 Postage Total expenses 5,539,177 5,104,105 (Deficiency) excess of revenue and other income over expenses $ (133,954) $ 26,535 See Independent Auditor's Report on Supplementary Information. 16

31 Downtown San Diego Partnership Supplementary Information Financial Statement Reconciliation to Final City Invoice Year Ended June 30, 2014 Total expenses per statement of activities - PBID $ 5,539,177 Equipment purchases 75,385 Unallowed depreciation expense (58,494) Unallowed legal expense (5,000) Accrued legal expense (71,125) Adjustment to record accrued salaries and related payroll taxes at June 30, 2014 (20,759) Non-cash accrual corrections (54,133) Total expenses per final invoice to the City $ 5,405,051 See Independent Auditor's Report on Supplementary Information. 17

32 Downtown n San Diego Partnership See Independent Auditor's Report on Supplementary Information. 18

33 Downtown San Diego Partnership Supplementary Information Budget Versus Actual - PBID Year Ended June 30, 2014 (unaudited) Budget Actual Invoiced Billed Billed Difference Assessments $ 5,911,025 $ 5,840,750 $ (70,275) Parks 13,600 24,301 10,701 Interest Income (188) Total Revenue and Other Income 5,924,985 5,865,223 (59,762) Office Supplies 6,000 7,436 1,436 Postage / Mailing 1, (627) District Mailings / Web Services 15,000 3,331 (11,669) Cleaning / Janitorial Supplies 100, ,602 23,602 Cement and Aggregates 5,000 5, Dry Goods / Uniforms 8,000 11,769 3,769 Other Repairs / Maintenance 50,000 44,490 (5,510) Vehicle Fuel 64,000 61,639 (2,361) Audit Services 20,000 17,911 (2,089) Vehicle Insurance 22,000 16,686 (5,314) Misc. Services / Supplies 156, , ,396 Leasing / Purchasing (Equipment) 10,000 45,054 35,054 Payroll Services/Parking/Misc 25,000 26,636 1,636 Rents / Leases 94,000 93,781 (219) Training 5, (4,152) Travel 1, (827) Photocopy 4,800 4,657 (143) Fidelity and General Liability Insurance 86,000 95,211 9,211 Workers Comp / EE Benefits 696, ,350 (54,092) Insurance Other / Benefits 32,354 32,354 - Salary and Wages 1,797,254 1,645,301 (151,953) Salaries and Wages Medians 90, ,481 11,661 Misc. Contract Services 1,940,705 1,851,509 (89,196) Program Oversight 72,000 72,000 - Waste Removal 60,000 63,827 3,827 Telephones 2,500 2, Cell Phones 18,000 21,666 3,666 Electric Services 35,000 31,514 (3,486) Water Services 41,000 36,852 (4,148) Legal Expenses 5,000 14,215 9,215 Total Reimbursable Expenses 5,464,625 5,405,051 (59,574) Interest / City Admin Charges 130, ,000 - Lighting Expense 330, ,000 * - Total Other Expenses 460, ,000 - Net Income $ 360 $ 172 $ (188) * This amount is based on preliminary data from the City which is pending detailed verification. See Independent Auditor's Report on Supplementary Information. 19