Comprehensive Annual Financial Report - City of Santa Monica

Comprehensive Annual Financial Report 

Year Ended June 30, 2009

CITY OF SANTA MONICA, CALIFORNIA 


For the fiscal year ended June 30, 2009 

Table of Contents 

Page 

INTRODUCTORY SECTION 

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

Officials of the City of Santa Monica ................................................................................................ xiii 

Organizational Chart – City of Santa Monica ................................................................................... xiv 

GFOA Certificate of Achievement for Excellence in Financial Reporting ....................................... xv 

FINANCIAL SECTION 

Independent Auditors' Report ............................................................................................................ 1 

Management’s Discussion and Analysis (Required Supplementary Information) ............................ 3 

Basic Financial Statements: 

Government-wide Financial Statements: 

Statement of Net Assets .............................................................................................................. 15 

Statement of Activities ................................................................................................................ 16 

Fund Financial Statements: 

Balance Sheet – Governmental Funds ........................................................................................ 18 

Statement of Revenues, Expenditures, and Changes in Fund Balances (Deficits) – 

Governmental Funds ................................................................................................................ 19 

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

Governmental Funds to the Statement of Activities ................................................................ 20 

Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 

(Non-GAAP Basis) – General Fund ........................................................................................ 21 

Statement of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual 

(Non-GAAP Basis) – Special Revenue Source Fund .............................................................. 25 

Statement of Net Assets – Proprietary Funds .............................................................................. 28 

Statement of Revenues, Expenses, and Changes in Fund Net Assets – Proprietary Funds ........ 30 

Statement of Cash Flows – Proprietary Funds ............................................................................ 31 

Statement of Fiduciary Assets and Liabilities – Fiduciary Funds ............................................... 34 

Notes to Basic Financial Statements: 

Note 1 – Summary of Significant Accounting Policies ............................................................ 35 

Note 2 – Budgetary and Legal Compliance .............................................................................. 43 

Note 3 – Reconciliation of Fund Financial Statements to Government-Wide Financial 

Statements ................................................................................................................... 44 

Note 4 – Pollution Remediation ................................................................................................ 47 

Note 5 – Cash and Investments ................................................................................................. 47 

Note 6 – Notes Receivable ........................................................................................................ 55 

Note 7 – Capital Assets ............................................................................................................. 61 

Note 8 – Unearned Revenue ..................................................................................................... 62 

Note 9 – Long-Term Liabilities ................................................................................................ 64 

Note 10 – Fund Deficits .............................................................................................................. 67 

Note 11 – Interfund Transactions ................................................................................................ 68 

Note 12 – Restricted Net Assets .................................................................................................. 70 

Note 13 – Reserved and Designated Fund Balances ................................................................... 71 

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Table of Contents, Continued 

Page 

Note 14 – Litigation and Contingencies ...................................................................................... 77 

Note 15 – Self-Insurance ............................................................................................................. 80 

Note 16 – Employee Benefit Programs ....................................................................................... 81 

SUPPLEMENTARY INFORMATION 

NON-MAJOR FUNDS / OTHER FINANCIAL INFORMATION 

Combining and Individual Fund Statements and Schedules: 

Combining Balance Sheet – Nonmajor Governmental Funds by Fund Type ................................ 92 

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor 

Governmental Funds by Fund Type ............................................................................................ 93 

Combining Balance Sheet – Nonmajor Governmental Funds – Special Revenue Funds .............. 94 

Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) – 

Nonmajor Governmental Funds – Special Revenue Funds ............................................................ 96 

Schedule of Revenues, Expenditures and Changes in Fund Balance (Deficit) – Budget and 

Actual (Non-GAAP Basis) – Nonmajor Governmental Funds – Special Revenue Funds: 

Clean Beaches and Ocean Parcel Tax ...................................................................................... 98 

Beach Recreation ..................................................................................................................... 99 

Housing Authority ................................................................................................................... 100 

Disaster Relief Fund ................................................................................................................ 101 

Tenant Ownership Rights Charter Amendment (TORCA) ...................................................... 102 

Community Development Block Grant (CDBG) ..................................................................... 103 

Miscellaneous Grants ............................................................................................................... 104 

Citizens Option for Public Safety ............................................................................................ 105 

Air Quality Management District (AQMD) ............................................................................. 106 

Parks and Recreation .............................................................................................................. 107 

Gas Tax .................................................................................................................................... 108 

Combining Balance Sheet – Nonmajor Governmental Funds – Capital Projects .......................... 110 

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – 

Nonmajor Governmental Funds – Capital Projects ..................................................................... 111 

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

(Non-GAAP Basis) – Major and Nonmajor Governmental Funds – Capital Projects Funds: 

Downtown Redevelopment Project ......................................................................................... 112 

Earthquake Recovery Redevelopment Project ......................................................................... 113 

Capital Projects ........................................................................................................................ 114 

Low/Mod Housing Projects ..................................................................................................... 115 

Ocean Park Redevelopment Project ......................................................................................... 116 

Combining Balance Sheet – Nonmajor Governmental Funds – Debt Service ............................... 118 

Combining Statement of Revenues, Expenditures and Changes in Fund Balances – 

Nonmajor Governmental Funds – Debt Service ......................................................................... 119 

Combining Balance Sheet – Nonmajor Governmental Funds – Permanent Funds ........................ 120 

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 

Nonmajor Governmental Funds – Permanent Funds .................................................................. 121 

Statement of Net Assets – Nonmajor Enterprise Funds ................................................................. 124 

Statement of Revenues, Expenses and Changes in Fund Net Assets – 

Nonmajor Enterprise Funds ........................................................................................................ 126 

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Table of Contents, Continued 

Page 

Statement of Cash Flows – Nonmajor Enterprise Funds ................................................................ 127 

Statement of Net Assets – Internal Service Funds ......................................................................... 130 

Statement of Revenues, Expenses and Changes in Net Assets – Internal Service Funds .............. 131 

Statement of Cash Flows – Internal Service Funds ........................................................................ 132 

Combining Statement of Fiduciary Assets and Liabilities – Fiduciary Funds ............................... 134 

Combining Statement of Changes in Fiduciary Assets and Liabilities – Fiduciary Funds ............ 135 

STATISTICAL SECTION 

Table Page 

Financial Trends Information 

Net Assets by Component – Last Eight Fiscal Years ........................................................... 1 139 

Changes in Net Assets – Last Eight Fiscal Years ................................................................. 2 140 

Fund Balance of Governmental Funds – Last Ten Fiscal Years .......................................... 3 143 

Changes in Fund Balance of Governmental Funds – Last Ten Fiscal Years ........................ 4 144 

General Fund Tax Revenues by Source – Last Five Fiscal Years ........................................ 5 146 

Revenue Capacity Information 

Assessed Value and Actual Value of Taxable Property – Last Ten Fiscal Years ................ 6 147 

Direct and Overlapping Property Tax Rates – Last Ten Fiscal Years .................................. 7 148 

Principal Property Tax Payers – Current Fiscal Year and Nine Years Ago ......................... 8 149 

Property Tax Levies and Collections – Last Ten Fiscal Years ............................................. 9 150 

Taxable Transactions by Type of Business – Last Five Calendar Years .............................. 10 151 

Debt Capacity Information 

Ratios of Outstanding Debt by Type – Last Ten Fiscal Years ............................................. 11 152 

Ratios of General Bonded Debt – Last Ten Fiscal Years ..................................................... 12 153 

Direct and Overlapping Governmental Activities Debt as of June 30, 2009 ........................ 13 154 

Computation of Legal Debt Margin – Last Ten Fiscal Years ............................................... 14 155 

Wastewater Enterprise Revenue Bonds Coverage ................................................................ 15 156 

Redevelopment Agency Earthquake Recovery Project Tax Allocation Bonds Coverage .... 16 157 

Redevelopment Agency Ocean Park Project Tax Allocation Refunding Bonds Coverage .. 17 158 

Demographic and Economic Information 

Demographic and Economic Statistics – Last Ten Calendar Years ..................................... 18 159 

Principal Employers – Current Year and Nine Years Ago ................................................... 19 160 

Operating Information 

Full-time Equivalent City Government Employees by Function/Program – 

Last Six Fiscal Years ......................................................................................................... 20 161 

Operating Indicators by Function/Program – Last Four Fiscal Years .................................. 21 162 

Capital Asset Statistics by Function/Program – Last Four Fiscal Years .............................. 22 163 

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directors are appointed by the City Manager. 

The City provides a full range of services, including police and fire protection, water and wastewater utilities, 

street maintenance, public transportation, parking, parks and recreation, planning, and building and safety. 

Elementary and secondary education is provided by the Santa Monica Malibu Unified School District, and 

community college education is provided by the Santa Monica College District. Courts, health and social 

services are provided by the County of Los Angeles. Gas, electric and telephone services are provided by 

private utility companies. 

Financial data for all funds through which services are provided by the City have been included in this report 

based on the criteria adopted by GASB. 

FINANCIAL CONDITION AND OUTLOOK 

Despite a normally resilient economy, Santa Monica has not been immune to the economic factors at play at 

the national and state level. Property transfers have declined to record lows and the local tourism industry has 

been impacted. While our sources of revenue are diversified, most major tax revenues have declined and are 

predicted to decline further in the coming fiscal year. The recession that began in December 2007 has 

subsided but economists remain uncertain about the nature and length of the recovery. 

In spite of revenue declines, the City ended the fiscal year with a positive operating balance and a record 

General Fund Balance of nearly $200 million. Proactive fiscal management demonstrated by close 

monitoring of revenues and mid-year adjustments contributed to this positive result, as well as a transfer of 

unrestricted proceeds from a legal settlement with certain oil companies over MTBE contamination. Large 

designated reserves provide flexibility and resources for capital projects, future expenditures, retirement 

contribution increases and economic uncertainty; and Santa Monica continues to be a top destination for 

visitors and a high demand location for employers. 

In November 2008, Santa Monica voters affirmed the City’s Utility Users Tax ordinance and eliminated the 

need for an $8.2 million portion of the General Fund balance previously designated as a contingency for the 

potential loss of the telecommunications portion of the tax. This $8.2 million was in turn set aside by the 

City Council to fund an economic uncertainty reserve to allow the city to respond to the impacts of the current 

economic turmoil. The adopted Budget for FY 2009-10 anticipates using this reserve as a bridge for the next 

two years in order to allow the City to make necessary budget adjustments in order to respond to a downturn 

in the economy. This bridge provides for a more measured and strategic approach to closing the ongoing 

structural shortfall and also allows the City to better assess expected ongoing revenue streams as the economy 

recovers. As part of the FY 2009-10 budget development, departments proposed reductions that will help the 

City to weather the current economic crisis while mitigating potential service impacts to the community. The 

greatest budget reduction was in staffing with the remainder a reduction costs for vehicle replacement, 

departmental supplies and contractual and professional services. The plan for FY 2010 -11 assumes these 

savings will continue. Additionally, a Citywide hiring freeze will remain in effect until longer term budget 

adjustments are implemented. 

California’s budget deficit continues to present challenges for the City. The FY 2009-10 State budget 

included two especially significant revenue provisions affecting the City, a $1.9 billion borrowing of property 

tax funds from local governments under the provisions of Proposition 1A and a $2.05 billion seizure of local 

redevelopment funds. The City’s share of the property tax borrowing, which would have resulted in reduced 

revenues to the City’s General Fund, was $3.1 million. However, by reason of the City’s participation in the 

State-sponsored securitization of the City’s Proposition 1A receivable, the City will receive an equivalent 

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amount of borrowed property taxes in two equal payments, in January and May. The California 

Redevelopment Association estimates the share of the diversion assessed against the City’s Redevelopment 

Agency to be $20.9 million for FY 2009-10. While redevelopment agencies have sued the State challenging 

the constitutionality of this seizure of monies from redevelopment agencies, the City cannot predict the 

outcome of this action. 

Future State budgets will likely continue to be affected by national and state economic conditions, as well as 

other factors over which the City will have no control. On November 18, 2009, the State Legislative Analyst’s 

Office estimated the State could face a budget deficit in excess of $21 billion through Fiscal Year 2010-11. 

To the extent that the State’s annual budget process results in reduced revenues or increased expenses to 

cities, Santa Monica will be required to make adjustments to its budget. On Oct. 20, a coalition, which 

includes the League of California Cities, local government, transportation and public transit leaders, filed a 

ballot measure initiative - the Local Taxpayer, Public Safety and Transportation Protection Act - with the 

California Attorney General's office. The coalition hopes to have this measure placed on the statewide ballot 

for November 2010. The measure, if passed by voters, would close loopholes and prevent the state from 

borrowing, raiding or otherwise redirecting local government (local taxes, property taxes, redevelopment), 

transportation (Highway User Tax Allocation and Proposition 42 funds) and public transit funds. 

Community Priorities 

The City of Santa Monica conducts numerous meetings with stakeholders throughout the year and gleans 

direction from Boards, Commissions, neighborhood groups, and individual constituents, who communicate 

with City staff through Council meetings, the City’s website, and regular mail. This community input, 

captured as community priorities provides the foundation for the City’s budget. For FY 2009-10 and beyond, 

two specific areas of focus are Fiscal Stability and Land Use and Circulation (LUCE) and Other Long Term 

Planning Efforts. Other community priorities spelled out in the City’s Budget Priorities include the 

following: Homelessness, Sustainability, Education, Culture, Capital Needs and Infrastructure, Recreation and 

Active Living, Youth and Customer Services. 

Citywide Budget 

The FY 2009-10 Adopted Budget includes $539.3 million in expenditures, net of reimbursements and 

transfers, for all funds. This represents a decrease of almost 2.9 percent from the revised budget for FY 2008- 

09. Citywide revenues are estimated at $539.6 million, a decrease of $4.2 million or 0.8 percent, from the 

revised estimated for FY 2008-09. While the City continues to benefit from a diverse source of revenues, 

particularly in the General Fund, numerous threats to those revenues exist. 

The General Fund operating budget for FY 2009-10 is estimated at $239.4 million and Capital Improvement 

Projects add an addition $25.0 million for a total General Fund budget of $264.4 million. Operating 

expenditures increased $2.2 million, or less than one percent from the previous year. General Fund revenues 

for FY 2009-10 are budgeted at $247.2 million, a decrease of $0.4 million or 0.2% from FY 2008-09 actual 

revenues. Trends developing in FY 2009-10, however, indicate that revenues fall short of budget projections 

by approximately two percent due to weakness in some local taxes and charges for services. 

The FY 2009-10 Budget reflects major self-supporting funds of the City that are generally in sound financial 

condition. Water and Wastewater funds remain healthy following five year rate increases approved in FY 

2008-09. The Solid Waste Fund projects a positive fund balance in FY 2009-10 but is projected to enter 

negative territory in FY 2010-11. The City recently entered into a private-public partnership with a local 

solid waste company and has employed a consultant to conduct a rate analysis for the Solid Waste Fund. The 

proposed rate structure will capture efficiencies afforded by the new partnership and will allow the City to 

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ensure ongoing revenues are sufficient to cover expenses. The Big Blue Bus fund remains balanced in the 

short term even though State Transit Assistance funds were cut as the State addressed its financial crisis. 

Over the long term, however, corrective action is needed. The Big Blue Bus plans to propose a fare 

adjustment in FY 2010-11. 

Although the Cemetery Fund is currently subsidized by the General Fund, the Public Works Department has 

developed a business plan for the operation that is projected to eliminate the subsidy in future years. 

Likewise, the Pier Fund continues to be subsidized in FY 2009-10, requiring approximately $3.3 million from 

the Parking Authority Fund and General Fund. Finally, the Civic Auditorium Fund is expected to require 

approximately $1.3 million in General Fund subsidy in FY 2009-10. 

The Annenberg Community Beach House opened in April 2009 and is expected to complete a first year of 

operations with a subsidy of $1.3 million from the Beach Fund. In future years, a growing General Fund 

subsidy is anticipated. 

Major Projects 

The City is currently undertaking improvements at two existing City-operated water service facilities: the 

Charnock Well Field site and the Santa Monica Arcadia Water Treatment Plant. The proposed improvements 

include a new water treatment system at the Charnock site and upgrades to the water treatment process plant 

at the Arcadia Water Treatment Plant to soften, disinfect, and fluoridate the water. The improvements will 

provide a multiple barrier treatment process to remove contaminants from groundwater and restore this 

resource as a water supply for the City. This project is funded by a settlement with oil companies over MTBE 

contamination. 

The planned Expo Light Rail Phase 2 project between Culver City & Santa Monica is a significant transit 

alternative that will connect to the regional rail system and provide new transit options for Santa Monica 

residents, employees, & visitors. The project will provide relief for the tremendous and growing congestion 

on the I-10/Santa Monica Freeway, one of the busiest travel corridors in the country. City staff is currently 

working to ensure rail line and stations are integrated into streets, neighborhoods and districts, provide highquality 

service, and connect to major destinations. Phase 2 construction is scheduled to begin in 2012 and 

service is anticipated to commence in 2014-15. 

In November 2006, Santa Monica voters passed Measure V: The Clean Beaches and Ocean Ballot Measure to 

fund over $40 million in projects for new urban runoff treatment projects that will prevent unhealthful water 

pollution from reaching Santa Monica beaches & Santa Monica Bay. The Pier storm drain was identified as 

Council’s highest priority project and installation was complete in May 2009. The project eliminates dry 

weather urban run-off onto the beach which has been a source of bacteria and beach water contamination 

during the dry season. A diversion to the sanitary sewer was constructed eliminating water from draining from 

the end of the storm drain onto the beach. 

The Palisades Bluffs Stabilization Project is a federally funded project involving the installation of horizontal 

drains to remove groundwater that accumulates behind the bluff face to minimize future landslides. The 

horizontal drains are to be installed near the base of the bluffs adjacent to Pacific Coast Highway, north of the 

California Incline. The project also involves debris removal at several locations, and a limited demonstration 

of surface grouting and soil nailing methods within a section of the bluffs that is visually hidden from Pacific 

Coast Highway. The project is on schedule for completion before May 31, 2010. 

Long-Term Financial Planning. The City is dedicated to financial planning in all areas of the organization. 

Financial planning takes the form of continuous review and refinement of fiscal policies, development of 

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five-year forecasts, and an understanding of the initiatives being undertaken by the entire organization. In 

June 2008, the City Council adopted the following fiscal policies to help provide critical analysis and sound 

review for budget development decisions. 

General Policies 

● 

● 

The City will maintain sound financial practices in accordance with state law and direct its financial 

resources towards meeting the City’s long-term goals. 

The City will maintain and further develop programs to assure its long-term ability to pay the costs 

necessary to provide the level and quality of service required by its citizens. 

Operating Budget Policies 

● The City will adopt a balanced budget annually by June 30. 

● Current revenues will be sufficient to support current operating expenditures. 

● The City will estimate revenues using an objective and analytical process; in the case of assumption 

uncertainty, conservative projections will be used. 

● The City will forecast its General Fund and other major fund expenditures and revenues for a fiveyear 

period and will update the forecast annually. The forecast will be taken into consideration when 

preparing budget recommendations. 

Revenue Policies 

● 

● 

● 

● 

● 

● 

The City will endeavor to maintain a diversified and stable revenue system to minimize the shortterm 

fluctuations in any one revenue source. 

The City will avoid targeting revenues for specific purposes, whenever possible, allowing maximum 

flexibility in funding decisions on an annual basis. 

One-time revenues will be used for one-time expenditures only. 

User fees will be adjusted annually by CPI and reviewed at least once every five years to ensure that 

fees recover the costs of providing services. 

The City will investigate potential new revenue sources, particularly those which will not add to the 

tax burden of residents and local businesses. 

The City will work proactively with the League of California Cities and local communities to monitor 

legislation that may impact the City financially. 

Expenditure Policies 

● 

● 

The City will maintain a level of expenditures that support the essential services and promote qualityof-life 

to its citizens. 

Each enterprise fund should reflect the true costs of operation, including direct and indirect charges 

for services. 

Debt Policy 

● 

Capital projects may be funded on a pay-as-you-go basis or using debt proceeds. Capital budgeting is 

limited by the availability of revenues and bond proceeds. The ability to meet debt service 

requirements will act as a ceiling on capital programming. Because capital expenditures produce 

long-term benefits, they can appropriately be funded by debt, which can lead to a more equitable tax 

burden across generations of citizens and taxpayers. However, pay-as-you-go financing provides 

flexibility when the economy or revenue growth slows. Therefore, the City’s goal is to maintain a 

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● 

● 

balance between pay-as-you-go financing and debt financing for capital projects. 

When the City finances capital projects by issuing bonds, it will pay back the bonds within a period 

not to exceed the expected useful life of the project. 

When possible, the City will identify a source of repayment for General Fund supported bonds and 

monitor the source of repayment in the future to ensure it is sufficient to meet debt repayment 

requirements. 

Reserve/Internal Service Fund Policies 

● 

● 

● 

The City will maintain a General Fund operating contingency designation at a level that is equal to at 

least 10% of the General Fund’s annual operating expenditure budget. Council approval will be 

required before expending funds from this operating contingency designation. 

In addition to the General Fund operating contingency designation, the City’s goal is to maintain an 

economic uncertainty designation with the level to be established as needed, but not less than 3% of 

the General Fund’s annual operating expenditure budget. 

The City will maintain a designation in the General Fund for earned, but unused, vacation benefits of 

General Fund employees. The assessment of this designation is made annually, on June 30. All 

other compensated absences are recorded in the respective governmental or proprietary funds. 

● The City will maintain a capital/maintenance designation to be determined as part of the annual 

budget adoption. The capital/maintenance designation is to be made available by Council 

appropriation to meet unanticipated, unscheduled, and/or unprogrammed capital and maintenance 

needs of City infrastructure and facilities. This designation is intended to be used for major capital 

repair where facility failure, unexpected hazards, or destruction of City property has occurred and 

where repair or replacement is not planned within the established capital, operations, or other 

replacement funds. 

Capital Improvement Policies 

● 

● 

● 

The City will coordinate preparation of the capital budget with preparation of the operating budget. 

Future operating costs associated with new capital improvements will be projected and included in 

the operating budget forecasts. 

The City will identify estimated costs and potential funding sources for each proposed capital project 

before it is submitted to Council for approval. 

The City administration will identify, for Council consideration, the least costly financing method for 

all new projects. 

Accounting, Auditing & Financial Reporting Policies 

● The City’s accounting and financial reporting systems will be maintained in conformance with 

generally accepted accounting principles and standards of the Government Accounting Standards 

Board. 

● A Comprehensive Annual Financial Report will be prepared and audited by a qualified independent 

public accounting firm. 

Investment Policies 

● 

● 

An investment policy will be submitted annually to the City Council for review and adoption. 

The City will invest public funds in a manner that will provide a market rate of return after ensuring 

optimum safety and meeting the daily cash flow demands of the City. 

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Cash Management Policies and Practices. The City’s Investment Policy (Policy) sets broad legal 

guidelines which govern the investment of cash balances. The Policy, established in accordance with State 

law, has been certified by the Association of Public Treasurers, United States and Canada. The Policy is 

reviewed annually and approved by the City Council. The primary objectives of all City investments, in 

priority order, are safety and preservation of principal, liquidity to meet cash flow needs, and a market rate of 

return after the first two objectives have been met. Within this framework, the City has developed an 

Investment Plan (Plan) which guides strategy and structure of the portfolio. The Plan sets targets for the 

portfolio by investment type as well as benchmarks to measure return. 

Debt Administration. At June 30, 2009, the City's general obligation bond rating was the highest possible 

with an Aaa from Moody’s; AAA from Fitch; and AAA from Standard and Poor’s. All other City 

indebtedness is considered to be at least investment grade. The City’s bonded debt applicable to its debt limit 

consisted of: $18.5 million of Main Library Improvements Project General Obligation Bonds; $23.1 million 

in Public Safety Facility Lease Revenue Bonds; $37.3 million in Civic Center Parking Structure Bonds; $72.9 

million in Earthquake Recovery Redevelopment Project Tax Allocation Bonds and Ocean Park 

Redevelopment Projects Tax Allocation Refunding Bonds; and $7.5 million in Parking Authority Lease 

Revenue Bonds. A calculation of the City's debt limit is detailed in Table 14 of the Statistical Section of this 

CAFR. 

The City has other long-term payment obligations, which are not bonded debt, e.g., claims payable. These are 

detailed in Note 9 in the notes to the basic financial statements. 

Risk Management. The City established a Risk Management program in 1986 to minimize the exposure of 

the City’s assets and resources (both human and financial) to accidental loss. The program is staffed by a 

full-time Risk Manager and includes risk identification and evaluation, risk control, risk transfer, and risk 

financing. Services include administration of claims filed by the public and employees and safety training 

and loss prevention. 

Additional information about the City’s risk management practices can be found in Note 15 of the notes to the 

basic financial statements. 

Pension and Other Postemployment Benefits (OPEB). The City contributes to the California Public 

Employees’ Retirement System (CalPERS), an agent multiple-employer public employee defined benefit 

pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and 

death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative 

agent for participating public entities within the state of California. Benefit provision and all other 

requirements are established by the State statute. The amount of the City’s required annual contribution is 

determined actuarially. It is the policy of the City to fully fund the annual required contribution to ensure that 

the plan will be able to fully meet its obligation to retired employees. 

In addition, in accordance with agreements with various bargaining units, the City provides other 

postemployment benefits to retirees. Funded on a pay-as-you-go-basis, a net OPEB obligation of $2.4 million 

is reflected in the Statement of Net Assets as of June 30, 2009. 

In addition to the CalPERS pension benefits and other postemployment benefits to retirees described above, 

the City contributes to postemployment medical premium reimbursement plans for employees. These plans 

were established by employees to mitigate the impacts of postemployment medical costs and are managed by 

trustees from the various employee groups. 

Additional information regarding the City's pension benefits and other postemployment benefits can be found 

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in Note 16 of the notes to the basic financial statements. 

AWARDS 

The Government Finance Officers Association of the United States and Canada (GFOA) awarded a 

Certificate of Achievement for Excellence in Financial Reporting to the City for its CAFR for the fiscal year 

ended June 30, 2008. The Certificate of Achievement is a prestigious national award, recognizing 

conformance with the highest standards for preparation of State and local government financial reports. 

In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and 

efficiently organized CAFR whose contents conform to program standards. This report must satisfy both 

generally accepted accounting principles and applicable legal requirements. 

A Certificate of Achievement is valid for a period of one year only. The City of Santa Monica has received a 

Certificate of Achievement for each of the last twenty-five years. We believe our current CAFR also 

conforms to the Certificate of Achievement program requirements. 

In keeping with past practice, a copy of this CAFR will be placed on file in the City libraries and sent to City 

management personnel, bond rating agencies, and other agencies which have expressed an interest in the 

financial affairs of the City. It is also available at www.smgov.net/finance. 

ACKNOWLEDGEMENTS 

The preparation and development of this report would not have been possible without the year-round work of 

the Finance Department staff and their special efforts, working in conjunction with the City’s independent 

auditors, to produce this report. 

I would like to take this opportunity to compliment and thank the staff members of both the City and our 

independent auditors who were associated with the preparation of this report. I would also like to thank the 

City Council for their continued interest and support in planning and conducting the financial operations of 

the City in a responsible and progressive manner. 

Respectfully submitted, 

Carol Swindell 

Director of Finance/City Treasurer 

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OFFICIALS OF THE CITY OF SANTA MONICA 

As of December 15, 2009 

City Council 

Ken Genser, Mayor 

Pam O’Connor, Mayor Pro Tempore 

Richard Bloom 

Gleam Davis 

Robert Holbrook 

Kevin McKeown 

Bobby Shriver 

Administration and Department Heads 

City Manager 

Assistant City Manager 

Deputy City Manager 

City Attorney 

City Clerk (Director of Records and Election Services) 

Director of Community Maintenance 

Director of Finance/City Treasurer 

Director of Human Resources 

Director of Information Systems 

Chief of Police 

Fire Chief 

Director of Planning and Community Development 

City Librarian 

Director of Community and Cultural Services 

Director of Transit Services 

Director of Housing and Economic Development 

Director of Public Works 

P. Lamont Ewell 

Jennifer Phillips 

Elaine Polachek 

Marsha Jones Moutrie 

Maria M. Stewart 

Joan Akins 


Donna Peter 

Jory Wolf 

Timothy Jackman 

James A. Hone 

Eileen Fogarty 

Gregory T. Mullen 

Barbara Stinchfield 

Stephanie Negriff 

Andy Agle 

Lee E. Swain 

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ORGANIZATION OF THE 

CITY OF SANTA MONICA 

As of December 15, 2009 

CITIZENS 

CITY COUNCIL 

Records & Election Services 

Maria M. Stewart 

City Manager 

P. Lamont Ewell 

City Attorney 

Marsha Jones Moutrie 

Deputy City Manager 

Elaine Polachek 

Assistant City Manager 

Jennifer Phillips 

Community Maintenance 

Joan Akins 

Police 

Timothy Jackman 

Fire 

James A. Hone 

Community & Cultural 

Services 

Barbara Stinchfield 

Finance 


Library 

Gregory T. Mullen 

Human Resources 

Donna Peter 

Big Blue Bus 

Stephanie Negriff 

Information Systems 

Jory Wolf 

Housing & Economic 

Development 

Andy Agle 

Planning & Community 

Development 

Eileen Fogarty 

Public Works 

Lee E. Swain 

xiv

Certificate of 

Achievement 

for Excellence 

Reporting 

Presented to 

City of Santa Monica 

California 

For its Comprehensive Annual 

Financial Report 

for the Fiscal Year Ended 

June 30, 2008 

A Certificate of Achievement for Excellence in Financial 

Reporting is presented by the Government Finance Officers 

Association of the United States and Canada to 

government units and public employee retirement 

systems whose comprehensive annual financial 

reports (CAFRs) achieve the highest 

standards in government accounting 

and financial reporting. 

President 

&fl& 

Executive Director 

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Management’s Discussion and Analysis 

Year ended June 30, 2009 

As management of the City of Santa Monica, California (City), we offer readers of the City’s 

Comprehensive Annual Financial Report (CAFR) this narrative overview and analysis of the financial 

activities of the City for the fiscal year ended June 30, 2009. We encourage readers to consider the 

information presented here in conjunction with additional information that we have furnished in the City’s 

basic financial statements, which immediately follow this section, and the CAFR transmittal letter in the 

preceding Introductory Section. 

FINANCIAL HIGHLIGHTS 

The total assets of the City for its governmental and business-type activities exceeded its liabilities 

as of June 30, 2009 by $1.5 billion. Of this amount, $997.5 million are capital assets, net of related 

debt, $188.8 million is for restricted uses as specified by entities outside of the City government, 

and $354.6 million is for unrestricted uses in accordance with finance-related legal requirements 

reflected in the City’s fund structure. 

The City’s total net assets increased $29.2 million during the current fiscal year. 

At the end of the current fiscal year, the City’s governmental funds reported total ending fund 

balances of $440.6 million, an increase of $14.5 million compared with the prior fiscal year. Of this 

amount, $176.2 million was reserved for uses set by various legal requirements and $264.4 million 

was unreserved. Of the unreserved amount, $256.1 million was designated for various specific uses 

by the City Council, and $8.3 million was unreserved and undesignated. 

At the end of the current fiscal year, the General Fund fund balance was $197.0 million, an increase 

of $48.2 million from the previous fiscal year, which consisted of a decrease of $39.6 million of 

reserved fund balance and an increase of $87.8 million of unreserved fund balance. Of the $155.5 

million unreserved fund balance, $147.9 is designated and $7.6 million is undesignated. 

The City’s investment in capital assets increased by $34.1 million or 3.5%. Please see further detail 

of capital assets in note 7. 

The City’s long-term debt increased by $5.8 million or 2.9% during the current fiscal year. Please 

see the table on page 13 and for further detail of long-term debt see note 9. 

OVERVIEW OF THE BASIC FINANCIAL STATEMENTS 

Management’s Discussion and Analysis is intended to serve as an introduction to the City’s basic 

financial statements. The City’s basic financial statements include three components: government-wide 

financial statements, fund financial statements, and notes to the basic financial statements. The major 

features of these financial statements, including the portion of the city government they cover and the 

types of information they contain, are summarized on the following page. The remainder of this overview 

section of management’s discussion and analysis explains the structure and contents of each of the 

statements. 

3


Management’s Discussion and Analysis, Continued 


Major Features of City of Santa Monica's Government-wide and Fund Financial Statements 

Fund Statements 

Government-wide 

Statements Governmental Funds Proprietary Funds Fiduciary Funds 

Scope 

Entire City gov ernment 

(except fiduciary funds) 

The ac tivies of the City that 

are not proprietary or fiduciary, 

such as police, fire, and library 

Activities the City operates 

similar to private businesses 

such as the water and sewer 

system , parking facilities and 

bus line 

Instances in which the City is the 

trustee or agent for someone 

else's resources 

Required financial 

statements 

- Statem ent of net as sets - Balance sheet - Statement of net assets 

- Statem ent of activities - Statement of revenues, - Statement of revenues, 

expenditures, and changes expenses, and changes in 

in fund balances 

net assets 

- Statement of cash flows 

- Statement of fiduciary net 

assets 

- Statement of changes in 

fiduciary net assets 

Accounting basis 

and measurem ent 

focus 

Acc rual accounting and 

econom ic resourc es 

foc us 

Modified accrual accounting 

and current financial 

resources focus 

Accrual accounting and 

economic resources focus 

Because the C ity only has 

Agency funds, there is no 

measurement focus. 

Type of 

asset/liability 

information 

All ass ets and liabilities, 

both financial and 

c apital, short term and 

long-term 

Only assets expected to be 

us ed up and liabilities that 

come due during the year or 

soon thereafter; no capital 

as sets or long-term debt 

included 

All assets and liabilities, both 

financial and capital, and shortterm 

and long-term 

All assets and liabilities, both 

short-term and long-term; the 

City's fiduciary funds do not 

currently contain capital assets, 

although they can 

Type of 

inflow/outflow 

information 

All revenues and 

expenses during year, 

regardles s of when c as h 

is rec eiv ed or paid 

Rev enues for which cash is 

received during or soon within 

90 days of year end; 

expenditures when goods or 

serv ic es have been received 

and payment is due 

All revenues and expenses 

during year, regardless of 

when cash is received or paid 

All revenues and expenses 

during year, regardless of when 

cash is received or paid 

Government-wide financial statements. The government-wide financial statements are designed to 

provide readers with a broad overview of the City’s finances, in a manner similar to statements of a 

private-sector business. 

The statement of net assets presents information on all 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 City’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 result in cash flows in future fiscal periods. 

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 or a significant portion of their costs through user fees and charges (business-type 

activities). The governmental activities of the City include public safety (police and fire), streets, library, 

cultural and recreation, parks, planning and zoning, housing and community development, and general 

administrative support. The business-type activities of the City include water, wastewater, stormwater, 

solid waste management, pier, civic auditorium, airport, special aviation services, cemetery, bus lines and 

parking structures and lots. 

4




Component units are included in the basic financial statements and consist of legally separate entities for 

which the City is financially accountable and that have either the same governing board as the City or a 

governing board appointed by the City of Santa Monica City Council. The blended component units 

include the Redevelopment Agency of the City of Santa Monica, the Parking Authority of the City of 

Santa Monica, and the Housing Authority of the City of Santa Monica. 

Three related organizations, the Pier Restoration Corporation, the Bayside District Corporation, and the 

Santa Monica Arts Foundation, are not included in the basic financial statements. While the City is 

financially accountable and each have a governing board appointed by the City of Santa Monica City 

Council, the economic resources held by these related organizations are not significant to the City. The 

fund financial statements provide detailed information about the City’s most significant funds—not the 

City as a whole. 

The government-wide financial statements can be found on pages 15 and 16 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 the funds of the City can be 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 

governmental-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 the City’s near-term financing 

requirements. 

Because the focus of governmental funds is narrower than that of the government-wide financial 

statements, it is useful to compare the information presented for 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 funds balance sheet and the governmental funds statements of revenues, expenditures, 

and changes in fund balance provide reconciliation to the government-wide financial statements in order 

to facilitate this comparison between governmental funds and governmental activities. 

The City maintains 24 individual governmental funds for financial reporting purposes. 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, Special Revenue Source, 

Downtown Redevelopment Project, and Earthquake Recovery Redevelopment Project funds, which are 

considered to be major funds. Data for the other 20 governmental funds are combined into a single, 

aggregated presentation. Individual fund data for each of these non-major governmental funds is 

provided in the non-major funds supplementary section of this report. 

The City Council adopts an annual appropriated budget for its General Fund, 12 of 14 special revenue 

funds (no budget is adopted for the Rent Control Fund and Asset Seizure Fund), and 5 capital project 

funds. A budgetary comparison statement has been provided for the General Fund, Special Revenue 

Source Fund, and Downtown Redevelopment Project Fund in the basic financial statements. 

The governmental funds financial statements can be found on pages 18 through 25 of this report. 

5




Proprietary funds. Proprietary funds provide the same type of information as the government-wide 

financial statements, but in more detail. The proprietary fund financial statements provide separate 

information for the wastewater and bus operations, which are considered to be major funds of the City. 

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. 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 operations, risk 

management program and information technology and communications operations. The vehicle 

operations and insurance services for bus operations primarily benefit business-type activities and are 

included within business-type activities in the government-wide financial statements. All other risk 

management functions, information technology and communication services primarily benefit 

governmental funds and are included within governmental activities in the government-wide financial 

statements. Individual fund data for the internal service funds is provided in the supplementary 

information section of this report. 

The proprietary funds financial statements can be found at pages 28 through 32 of this report. 

Fiduciary funds. Fiduciary funds, which consist solely of trust and agency funds, are used to account for 

resources held for the benefit of parties outside the City. Fiduciary funds are not included in the 

government-wide financial statements because the resources are not available to support the City’s 

operations. The accounting used for fiduciary funds is much like that used for proprietary funds. 

The fiduciary funds financial statements can be found on page 34 of this report. 

Notes to the basic financial statements. The notes to the basic financial statements 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 begin on page 35 of this report. 

GOVERNMENT-WIDE FINANCIAL ANALYSIS 

As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. 

In the case of the City, assets exceeded liabilities by $1.5 billion at the close of the current fiscal year. 

As shown below, the largest portion of the City’s net assets, $997.5 million or 64.7%, reflects the City’s 

investment in capital assets less any related outstanding debt used to acquire those assets. The City uses 

these capital assets to provide services to citizens; consequently, these assets are not available for future 

spending. Although the City’s investment in its capital assets is reported net of related debt, it should be 

noted that resources needed to repay this debt must be provided from other sources, since the capital 

assets themselves cannot be used to liquidate liabilities. 

An additional portion of the City of Santa Monica’s net assets, $188.8 million or 12.3% represent 

resources that are subject to external restrictions on how they may be used. The remaining balance of 

unrestricted net assets, $354.6 million or 23.0%, may be used to meet the government’s ongoing 

obligations to citizens and creditors. 

At the end of the current fiscal year, the City of Santa Monica is able to report positive balances in all 

three categories of net assets, both for the government as a whole, as well as for its separate governmental 

and business-type activities. The same situation held true for the prior fiscal year. 

6




A summary of the government-wide statement of net assets follows: 


Net Assets 

(in millions) 

2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 

Current and other assets $ 632.0 623.7 143.1 137.0 775.1 760.7 

Capital assets 723.7 724.9 444.3 417.0 1,168.0 1,141.9 

Total assets 1,355.7 1,348.6 587.4 554.0 1,943.1 1,902.6 

Current and other liabilities 136.7 134.3 23.1 25.5 159.8 159.8 

Long-term liabilities 210.0 198.6 32.4 32.5 242.4 231.1 

Total liabilities 346.7 332.9 55.5 58.0 402.2 390.9 

Net assets: 

Invested in capital assets, 

Governmental activities Business-type activities Total 

net of related debt 579.4 574.0 418.2 389.4 997.6 963.4 

Restricted 187.1 232.3 8.7 1.6 195.8 233.9 

Unrestricted 242.5 209.4 105.0 105.0 347.5 314.4 

Total net assets $ 1,009.0 1,015.7 531.9 496.0 1,540.9 1,511.7 

7




A summary of the government-wide statement of changes in net assets follows: 


Changes in Net Assets 

(in millions) 


2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 

Revenues 

Program revenues: 

Charges for services $ 80.0 78.4 79.1 74.7 159.1 153.1 

Operating grants and contributions 30.2 34.8 34.2 32.2 64.4 67.0 

Capital grants and contributions 20.4 4.9 53.2 20.0 73.6 24.9 

General revenues: 

Sales tax 28.3 32.4 - - 28.3 32.4 

Property tax 107.3 101.3 - - 107.3 101.3 

Other taxes 105.0 108.4 - - 105.0 108.4 

Settlement income 89.9 1.0 - - 89.9 1.0 

Investment earnings 16.2 22.0 4.2 4.5 20.4 26.5 

Other general revenues 8.9 8.0 4.2 3.4 13.1 11.4 

Total revenues 486.2 391.2 174.9 134.8 661.1 526.0 

Expenses 

General government 46.7 38.8 - - 46.7 38.8 

Public safety 100.7 91.9 - - 100.7 91.9 

General services 161.2 111.2 - - 161.2 111.2 

Cultural and recreation 44.0 33.8 - - 44.0 33.8 

Library 11.4 11.4 - - 11.4 11.4 

Housing and community 

development 115.8 92.0 - - 115.8 92.0 

Interest on long term debt 7.3 7.6 - - 7.3 7.6 

Water - - 16.0 15.5 16.0 15.5 

Solid waste management - - 19.2 16.3 19.2 16.3 

Pier - - 5.2 4.9 5.2 4.9 

Wastewater - - 19.6 20.1 19.6 20.1 

Civic auditorium - - 3.9 3.7 3.9 3.7 

Airport - - 5.7 5.2 5.7 5.2 

Storm water management - - 0.7 0.4 0.7 0.4 

Cemetery - - 2.0 1.7 2.0 1.7 

Big Blue Bus - - 70.9 65.2 70.9 65.2 

Parking authority - - 1.6 0.3 1.6 0.3 

Total expenses 487.1 386.7 144.8 133.3 631.9 520.0 

Excess (deficiency) of revenues 

over expenses before transfers (0.9) 4.5 30.1 1.5 29.2 6.0 

Transfers (5.8) (2.8) 5.8 2.8 - - 

Increase (decrease) in net assets (6.7) 1.7 35.9 4.3 29.2 6.0 

Beginning net assets as restated 1,015.7 1,014.0 496.0 491.7 1,511.7 1,505.7 

Ending net assets $ 1,009.0 1,015.7 531.9 496.0 1,540.9 1,511.7 

8




Governmental Activities. Governmental activities decreased the City’s governmental activities net 

assets by $6.7 million for the current fiscal year. It should be noted that this decline in governmental 

activities net assets is due, in part, to transfers of $5.8 million to proprietary funds. In addition, general 

services expenditures were $50.1 million higher than the prior fiscal year primarily due to accrued 

pollution remediation costs of $92.3 million. 

Business-type Activities. Business-type activities increased the City’s business-type activities net assets 

by $35.9 million. A key element for this growth in net assets was the increase of $33.2 million in capital 

grants and contributions for the current fiscal year. 

FINANCIAL ANALYSIS OF THE CITY'S MAJOR FUNDS 

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

requirements. 

Governmental funds. The focus of the City’s governmental funds is to provide information on nearterm 

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

City’s financial requirements. In particular unreserved fund balance may serve as a useful measure of a 

government’s net resources available for spending at the end of the fiscal year. 

At the end of the current fiscal year, the City’s governmental funds reported total fund balances of $440.6 

million, $14.5 million or 3.4% increase in comparison with the prior year. Approximately $264.4 million 

or 60.0% total fund balances constitutes unreserved (designated and undesignated) fund balance, which is 

available to meet the City’s current and future needs. The remainder of fund balance is reserved to 

indicate that it is not available for new spending because it has been committed to a variety of restricted 

purposes. Restrictions, commitments, or other limitations do not significantly affect the availability of 

fund resources for future use. 

General Fund 

The General Fund is the chief operating fund of the City. At the end of the current fiscal year, the 

unreserved (designated and undesignated) fund balance of the General Fund was $155.5 million, while 

total fund balance was $197.0 million, which was $48.2 million or 32.4% greater than the prior year’s 

General Fund total fund balance. As a measure of the General Fund’s liquidity, it may be useful to 

compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund 

balance represents 60.7% of total General Fund expenditures, while total fund balance represents 76.8% 

of total General Fund expenditures. 

The City’s management designates unreserved fund balance to a particular function, project or activity. 

Fund balance may also be designated for purposes beyond the current year. However, designated fund 

balance is available for appropriation at any time. Of the $155.5 million General Fund unreserved fund 

balance, 95.1% is designated. The most significant designations are $56.4 million for future 

expenditures, $30.3 for continuing capital projects, $25.3 million for operating contingency, $8.2 million 

for economic uncertainty, and $9.6 million for compensated absences. Unreserved and undesignated fund 

balance at year-end was $7.7 million. This amount constitutes funds available for spending at the 

government’s discretion. 

The General Fund fund balance increased $48.2 million during the fiscal year ended June 30, 2009. A 

variety of variances from the prior year--both positive and negative--contribute to the increase as follows: 

9




1. Revenues reflect a net decrease of $2.6 million over the prior fiscal year primarily from a 12.5% 

decrease in sales taxes ($4.1 million) resulting from decreased sales in the City, a 3.1% decrease 

in other taxes ($3.3 million) due to decreases in transient occupancy tax, utilities users’ tax and 

business license tax, a 9.1% increase in charges for services ($2.3 million) due to increased 

zoning application and variance fees and interfund services provided and used and a 46.8% 

increase in other revenues ($2.4 million) due to various miscellaneous revenues. 

2. Expenditures were $16.3 million higher than the prior fiscal year primarily due to increased 

general government, public safety, and general services expenditures. These increases were 

partially offset by a reduction in housing and community development expenditures. Transfers in 

increased by $60.7 million due to transfer of MTBE settlement monies from the Special Revenue 

Source Special Revenue Fund. 

Special Revenue Source Special Revenue Fund 

The Special Revenue Source Fund fund balance decreased by $54.1 million from the prior year. The 

decrease was primarily due to a transfer of MTBE settlement monies to the General Fund. 

Downtown Redevelopment Project Fund 

The Downtown Redevelopment Project Fund fund deficit increased by $0.3 million from the prior year. 

This increase was primarily due to decreased capital improvement project expenditures and increased 

incremental property tax revenues received in the current year. 

Earthquake Recovery Redevelopment Project Fund 

The Earthquake Recovery Redevelopment Project Fund fund balance increased by $5.4 million from the 

prior year. This increase was primarily due to increased property tax increment of $4.2 million and 

decreased capital improvement project expenditures of $21.0 million from the prior year. 

Nonmajor Governmental Funds 

All other governmental funds’ fund balances increased $15.4 million or 11.2% from the previous fiscal 

year. This increase was primarily due to an increase of $12.1 million in revenues. 

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

government-wide financial statements, but in more detail. 

The total net assets of the enterprise funds increased by $36.9 million. This was due primarily to increases 

in operating revenues of $4.4 million, an increase in sales tax proceeds of 2.0 million and a $33.2 million 

increase in capital contributions received. 

Total net assets of internal service funds at June 30, 2009 increased $0.8 million. In the prior year, the 

fund balance increased $11.3 million. This fiscal year operating revenues decreased $5.4 million and 

expenditures increased $5.2 million, so that revenues essentially equaled expenditures. 

10




Wastewater Enterprise Fund 

The total net assets of the Wastewater Fund increased by $1.7 million primarily due to an increase in 

operating revenue of $1.0 million and decreases of personnel services expense of $1.6 million, decreases 

in contractual services expense of $2.1 million and an increase in transfers in of $3.3 million. 

Big Blue Bus Enterprise Fund 

The total net assets of the Big Blue Bus increased $36.0 million. There were increases in depreciation 

expense of $3.1 million, increased sales tax proceeds of $2.0 million, and an increase in capital 

contributions – cash of $33.6 million. 

General Fund Budgetary Highlights 

Differences between the original budget versus the final amended budget and the final amended budget 

versus the actual are briefly summarized as follows: 

The final revenue budget is greater than the original budget by $1.8 million. The final budget for total 

revenues exceeded actual results by $0.8 million primarily due to final budget for sales taxes and other 

taxes exceeding actual results by $2.8 million and $5.2 million, respectively, and partially offset by actual 

results for property taxes and other income exceeding final budget by $1.4 million and $3.7 million, 

respectively. 

The final expenditure budget is greater than the original budget by $47.8 million. The increase is 

comprised primarily of a $43.0 million re-appropriation of continuing capital improvement project 

budgets from FY 2007-08 to FY 2008-09. Final budgeted expenditures exceeded actual expenditures by 

$39.3 million mostly due to unspent continuing capital improvement project budgets. 

CAPITAL ASSET AND DEBT ADMINISTRATION 

Capital Assets. The City’s investment in capital assets as of June 30, 2009, amounted to $1.2 billion (net 

of accumulated depreciation) an increase of $26.1 million from the prior year balance. This investment in 

a broad range of capital assets, including land, infrastructure, structures and improvements, equipment, 

and construction in progress, is detailed as follows: 

11





Capital Assets (net of depreciation) 

(in millions) 


2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 

Land $ 150.9 145.3 72.4 72.6 223.3 217.9 

Land held under easement 72.2 72.2 - - 72.2 72.2 

Buildings 244.2 210.6 39.0 39.5 283.2 250.1 

Improvements other than buildings 36.3 39.4 6.0 6.6 42.3 46.0 

Machinery and equipment 9.3 11.5 39.0 46.8 48.3 58.3 

Infrastructure 191.4 197.6 215.6 208.6 407.0 406.2 

Utility systems 5.0 5.0 - - 5.0 5.0 

Construction in progress 14.4 43.3 72.3 42.9 86.7 86.2 

Capital assets, net $ 723.7 724.9 444.3 417.0 1,168.0 1,141.9 

Some of the City’s major capital asset events in the current fiscal year were: 

Additions to the General Fund construction in progress in FY 2008-09 include $1.8 million in 

tenant improvements to the Civic Center Parking Structure. 

Additions to the Downtown Redevelopment Project Fund in FY 2008-09 include $11.7 million 

for the purchase of two parcels of land with buildings on 5 th Street and construction in progress of 

$2.0 million for the retrofit of parking structures and $1.5 million for improvements to the 

Mountain View Mobile Home Park. 

Additions to the Low and Moderate-Income Housing Fund in FY 2008-09 include $1.6 million 

in construction in progress for improvements to the Mountain View Mobile Home Park. 

Additions to the TORCA Fund in FY 2008-09 include $1.3 million in construction in progress for 

improvements to the Mountain View Mobile Home Park. 

Additions to the Clean Beaches and Ocean Parcel Tax Fund in FY 2008-09 include $1.0 million 

in infrastructure for the replacement of the Pier storm drain. 

Additions to the Pier Fund construction in progress in FY 2008-09 include $2.4 million in 

expenditures for the replacement of the Pier’s central restroom. 

Additions to the Big Blue Bus Fund construction in progress in FY 2008-09 include $30.9 million 

in expenditures for Phase 3 of the Campus Expansion construction. 

Additions to the Miscellaneous Grants Fund construction in progress in FY 2008-09 include 

$13.2 million to complete the revitalization of the property at 415 Pacific Coast Highway. 

12




Additions to the Wastewater Fund in FY 2008-09 include $2.7 million paid to the City of Los 

Angeles for Santa Monica’s share of the Hyperion Plant capital expenditures and $2.3 to 

construction in progress to complete the Colorado Ocean relief sewer. 

Additional information on the City’s capital assets can be found in note 7 to the basic financial 

statements. 

Long-term Debt. At the end of the current fiscal year, the City’s total long-term debt outstanding was 

$204.0 million, an increase from the prior year of $5.8 million or 2.9%. This amount was comprised of 

$93.6 million of revenue bonds which are secured by both governmental and business-type revenue 

sources, $72.9 million of tax allocation bonds which are secured by future tax revenues, $18.5 million of 

general obligation bonds which are backed by the assets of the City, $15.5 million drawn on a line of 

credit for low and moderate income housing programs of the Redevelopment Agency and secured by low 

and moderate income tax increment and it subordinates to the bonded indebtedness, and $3.5 million of 

various loans payable. This is shown in the following table: 


Outstanding Debt 

(in millions) 

General obligation bonds 

2008-09 2007-08 2008-09 2007-08 2008-09 2007-08 

(backed by the City) $ 18.5 20.1 - - 18.5 20.1 

Revenue bonds and notes 

(backed by specific tax and fee 140.7 147.5 25.8 27.2 166.5 174.7 

revenues) 

Line of credit, Redevelopment 15.5 - - - 15.5 - 

Agency (backed by specific 

tax revenues) 


Other loans 0.4 - 3.1 3.4 3.5 3.4 

Total $ 175.1 $ 167.6 28.9 30.6 204.0 198.2 

Additional information on the City’s long-term debt can be found in note 9 to the basic financial 

statements. 

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET 

The City’s adopted General Fund budget for FY 2009-10 supports the basic responsibilities of local 

government, the policy interests of City Council Members and diverse concerns of the residents. 

Management feels that there are adequate resources available to fund the proposed expenditures. 

13




In preparing the budget for the next fiscal year, many factors were taken into consideration. 

The impact on Santa Monica’s economy from the declining housing market and resultant 

reduction in consumer confidence. 

Revenues from sales tax derived from auto sales and leases have declined in recent quarters and 

are expected to decline in the future. 

In response to declining occupancy and increased competition in the local luxury room market, 

hotels have cut room rates, reducing local transient occupancy tax revenue. 

The temporary closure of Santa Monica Place for renovations during FY 2009-10 will also reduce 

City tax revenues in the near term. 

Anticipated reductions in state subsidies reducing revenue to the capital projects and Big Blue 

Bus funds. 

CONTACTING THE CITY'S FINANCE DEPARTMENT 

This management’s discussion and analysis is designed to provide citizens, taxpayers, customers, 

investors and creditors with a general overview of the City's finances and to demonstrate the City's 

accountability for the money it receives. If you have questions or need additional financial information, 

please contact the City of Santa Monica’s Finance Department at www.smgov.net/finance or at (310) 

458-8281. 

14


Statement of Net Assets 

June 30, 2009 

Governmental Business-type 

activities activities Total 

Assets 

Cash and investments (note 5) $ 480,883,523 117,854,805 598,738,328 

Receivables (net, where applicable, of allowances for uncollectibles): 

Accounts 9,122,842 19,838,695 28,961,537 

Interest 2,397,969 776,798 3,174,767 

Property taxes 5,227,525 — 5,227,525 

Notes (note 6) 80,299,802 — 80,299,802 

Other governments 7,232,423 — 7,232,423 

Internal balances 15,635,043 (15,635,043) — 

Inventory 1,381,715 1,116,945 2,498,660 

Prepaids 320,072 130,146 450,218 

Restricted cash and investments (note 5) — 17,523,919 17,523,919 

Restricted cash with fiscal agent (note 5) 26,971,390 513,406 27,484,796 

Due from other governments, restricted — 543,783 543,783 

Bond issuance costs, net 2,575,274 429,116 3,004,390 

Capital assets not being depreciated (note 7): 

Land 150,943,593 72,431,413 223,375,006 

Land held under easement 72,237,823 — 72,237,823 

Construction in progress 14,360,900 72,344,418 86,705,318 

Capital assets being depreciated (note 7): 

Buildings 287,060,577 69,341,293 356,401,870 

Improvements other than buildings 76,068,294 22,966,914 99,035,208 

Utility systems 5,317,913 — 5,317,913 

Machinery and equipment 31,425,538 129,951,547 161,377,085 

Infrastructure 328,602,549 278,989,173 607,591,722 

Less accumulated depreciation (242,347,888) (201,761,228) (444,109,116) 

Total capital assets, net 723,669,299 444,263,530 1,167,932,829 

Total assets 1,355,716,877 587,356,100 1,943,072,977 

Liabilities 

Accounts payable 10,443,111 7,134,859 17,577,970 

Accrued liabilities 97,976,307 2,470,293 100,446,600 

Accrued interest payable 3,631,317 539,917 4,171,234 

Contracts payable (retained percentage) 2,474,232 363,237 2,837,469 

Unearned revenue (note 8) 15,942,089 1,812,279 17,754,368 

Due to other governments 5,734,148 2,700,000 8,434,148 

Liabilities payable from restricted assets 463,204 8,094,494 8,557,698 

Long-term liabilities: 

Compensated absences due within one year (note 9) 5,073,777 1,909,237 6,983,014 

Compensated absences due in more than one year (note 9) 5,026,336 1,003,570 6,029,906 

Claims payable due within one year (note 9 and 15) 7,013,023 1,938,009 8,951,032 

Claims payable due in more than one year (note 9 and 15) 18,934,258 968,414 19,902,672 

Loans and bonds payable due within one year (note 9) 7,530,000 1,811,008 9,341,008 

Loans and bonds payable due in more than one year (note 9) 164,046,776 24,724,102 188,770,878 

Accrued OPEB liability (note 16) 2,415,000 — 2,415,000 

Total liabilities 346,703,578 55,469,419 402,172,997 

Net Assets 

Invested in capital assets, net of related debt 579,367,093 418,157,537 997,524,630 

Restricted for (note 12): 

Housing and community development 80,623,586 — 80,623,586 

Clean beaches and ocean parcel tax 3,883,155 — 3,883,155 

Miscellaneous grants 21,024,279 — 21,024,279 

Debt service 17,932,584 — 17,932,584 

Development projects 42,867,711 — 42,867,711 

Perpetual care - nonexpendable 7,054,258 — 7,054,258 

Rail system & Prop 1B — 8,745,119 8,745,119 

MTBE Settlement 13,718,258 — 13,718,258 

Unrestricted 242,542,375 104,984,025 347,526,400 

Total net assets $ 1,009,013,299 531,886,681 1,540,899,980 

See accompanying notes to basic financial statements. 

15


Statement of Activities 


16 

Program revenues 

Net (expense) revenue and changes in net assets 

Operating Capital 

Charges for grants and grants and Governmental Business–type 

Functions/programs Expenses services contributions contributions activities activities Total 

Governmental activities: 

General government $ 46,670,826 19,198,345 20,253 19,948 (27,432,280) — (27,432,280) 

Public safety 100,709,990 17,064,322 1,375,044 1,773 (82,268,851) — (82,268,851) 

General services 161,224,085 20,291,439 6,847,585 3,867,391 (130,217,670) — (130,217,670) 

Cultural and recreation services 44,031,895 10,608,948 2,876,467 16,490,752 (14,055,728) — (14,055,728) 

Library 11,422,789 410,908 234,505 — (10,777,376) — (10,777,376) 

Housing and community development 115,827,555 12,416,654 18,810,446 — (84,600,455) — (84,600,455) 

Interest on long-term debt 7,252,197 — — — (7,252,197) — (7,252,197) 

Total governmental activities $ 487,139,337 79,990,616 30,164,300 20,379,864 (356,604,557) — (356,604,557) 

Business–type activities: 

Water $ 15,958,328 15,774,047 — — — (184,281) (184,281) 

Solid waste management 19,219,079 21,631,313 — — — 2,412,234 2,412,234 

Pier 5,200,065 3,518,145 — — — (1,681,920) (1,681,920) 

Wastewater 19,603,411 13,751,588 — — — (5,851,823) (5,851,823) 

Civic auditorium 3,933,159 2,975,749 — — — (957,410) (957,410) 

Airport 5,737,927 3,989,851 — — — (1,748,076) (1,748,076) 

Storm water management 721,728 1,885,142 — — — 1,163,414 1,163,414 

Cemetery 1,956,609 1,009,595 — — — (947,014) (947,014) 

Big Blue Bus 70,855,809 14,391,300 34,203,607 53,209,039 — 30,948,137 30,948,137 

Special aviation 28,904 — — — — (28,904) (28,904) 

Parking authority 1,598,765 149,200 — — — (1,449,565) (1,449,565) 

Total business–type activities $ 144,813,784 79,075,930 34,203,607 53,209,039 — 21,674,792 21,674,792 

General revenues: 

Taxes: 

Business $ 28,821,688 

— 28,821,688 

Property 107,255,345 — 107,255,345 

Sales 28,296,696 — 28,296,696 

Transient occupancy 31,265,176 — 31,265,176 

Utility users 31,578,711 — 31,578,711 

Real property transfer 2,652,687 — 2,652,687 

Parking facility tax 7,980,134 — 7,980,134 

Other 2,669,680 — 2,669,680 

Settlement income 89,910,872 — 89,910,872 

Motor vehicle in lieu 265,228 — 265,228 

Other income 8,863,671 4,162,283 13,025,954 

Investment earnings 16,198,386 4,227,595 20,425,981 

Transfers (5,832,017) 5,832,017 — 

Total general revenues and transfers 349,926,257 14,221,895 364,148,152 

Change in net assets (6,678,300) 35,896,687 29,218,387 

Net assets, beginning 1,015,691,599 495,989,994 1,511,681,593 

Net assets, ending $ 1,009,013,299 531,886,681 1,540,899,980 

See accompanying notes to basic financial statements.


Major Governmental Fund Financial Statements 

General Fund – To account for all financial resources necessary to carry out basic governmental 

activities of the City that are not accounted for in another fund. The General Fund supports essential City 

services such as police and fire protection, street maintenance, libraries, parks and open space 

management. 

Special Revenue Source Fund (Special Revenue Fund Type) – To account for receipt and expenditure 

of monies collected for specific uses. 

Downtown Redevelopment Project Fund (Capital Projects Fund Type) – To account for the revenues 

and expenditures of the downtown redevelopment project area of the Redevelopment Agency of the City 

of Santa Monica. The redevelopment plan for this 9.9-acre project was approved in January 1976 and 

work was completed in 1980. The project area is located at the southern end of the City’s Third Street 

Promenade in the downtown core of Santa Monica. It consists of Santa Monica Place and two adjoining 

parking structures with 2,020 parking spaces. 

Earthquake Recovery Redevelopment Project Fund (Capital Projects Fund Type) – To account for 

the revenues and expenditures of the earthquake redevelopment project area of the Redevelopment 

Agency of the City of Santa Monica. The redevelopment plan for this 2,307-acre project was approved in 

June 1994. The project area includes approximately 90 percent of all red-tagged and 80 percent of all 

yellow-tagged buildings damaged by the January 17, 1994 Northridge Earthquake. Recovery project work 

is ongoing. 

17


Balance Sheet 

Governmental Funds 

June 30, 2009 

18 

Capital projects 

funds 

Earthquake 

Special Revenue Downtown Recovery Nonmajor Total 

General Source Redevelopment Redevelopment governmental governmental 

Assets Fund Fund Project Fund Project Fund funds funds 

Cash and investments $ 173,012,780 134,646,791 2,584,251 59,462,011 71,041,321 440,747,154 

Receivables (net, where applicable, of allowances for uncollectibles): 

Accounts 6,804,986 292,487 — — 2,022,961 9,120,434 

Notes 2,876,229 12,627,892 1,923,000 716,669 62,156,012 80,299,802 

Property taxes 1,197,298 — 97,373 2,644,537 1,288,317 5,227,525 

Interest 1,033,694 340,959 20,223 364,435 397,704 2,157,015 

Other governments — — — — 7,232,423 7,232,423 

Due from other funds (note 11) 1,376,554 — — — — 1,376,554 

Inventory 1,381,715 — — — — 1,381,715 

Prepaids 300,046 — 344 6,951 12,731 320,072 

Cash with fiscal agent 1,355,138 — — — 25,616,252 26,971,390 

Advances to other funds (note 11) 36,409,663 — — — 10,049,958 46,459,621 

Total assets $ 225,748,103 147,908,129 4,625,191 63,194,603 179,817,679 621,293,705 

Liabilities and Fund Balances 

Liabilities: 

Accounts payable $ 5,779,880 

1,598,668 — 536,380 2,324,783 10,239,711 

Accrued liabilities 5,376,913 — — 5,071 209,933 5,591,917 

Contracts payable (retained percentage) 515,899 187,579 — 977,981 792,773 2,474,232 

Due to other governments 996,991 — — 4,737,157 — 5,734,148 

Deferred revenue 15,727,952 94,191,645 — — 12,359,595 122,279,192 

Deposits 396,238 — — — 66,966 463,204 

Advances from other funds (note 11) — — 19,969,705 3,465,452 10,427,479 33,862,636 

Total liabilities 28,793,873 95,977,892 19,969,705 9,722,041 26,181,529 180,645,040 

Fund balances (deficit): 

Reserved (note 13) 41,432,273 33,153,778 1,923,344 723,620 98,970,123 176,203,138 

Unreserved - designated reported in: 

General Fund 147,861,391 — — — — 147,861,391 

Special revenue funds — 18,776,459 — — 11,814,351 30,590,810 

Capital projects funds — — — 45,530,778 32,181,784 77,712,562 

Unreserved - undesignated reported in: 

General Fund 7,660,566 — — — — 7,660,566 

Special revenue funds — — — — 12,311,620 12,311,620 

Capital projects funds — — (17,267,858) 7,218,164 (1,641,728) (11,691,422) 

Total fund balances (deficit) 196,954,230 51,930,237 (15,344,514) 53,472,562 153,636,150 440,648,665 

Total liabilities and fund balances $ 225,748,103 147,908,129 4,625,191 63,194,603 179,817,679 621,293,705 

Fund balances - total governmental funds $ 440,648,665 

Amounts reported for governmental activities in the statement of net assets are different because (Note 3): 

(1) Capital assets used in governmental activities are not current financial resources and therefore are not reported in the balance sheet 722,841,322 

(2) Bond issue costs to be amortized over the life of the debt 2,575,274 

(3) Long-term liabilities are not due and payable in the current period and therefore are not reported in the balance sheet (280,038,206) 

(4) Other long-term assets are not available to pay for current period expenditures and, therefore, are deferred in the 

funds and recognized as revenue in the statement of activities 106,337,103 

(5) Internal service funds are used by management to charge the costs of vehicle management, information technology and 

risk management to individual funds. The assets and liabilities of the information technology and risk 

management (excluding bus) internal service funds are included in the governmental activities in the statement of net assets 

The assets and liabilities of internal service funds are included in the statement of net assets 16,649,141 

Net assets of governmental activities $ 1,009,013,299


Statement of Revenues, Expenditures and Changes in Fund Balances (Deficits) 



19 


funds 

Earthquake 

Special Revenue Downtown Recovery Nonmajor Total 

General Source Redevelopment Redevelopment governmental governmental 

Fund Fund Project Fund Project Fund funds funds 

Revenues: 

Property taxes $ 36,763,026 

— — — — 36,763,026 

Incremental property taxes — — 797,550 53,000,885 17,491,314 71,289,749 

Sales taxes 28,296,696 — — — — 28,296,696 

Other taxes 100,991,562 — — — 4,648,073 105,639,635 

Licenses and permits 20,315,341 — — — 82,850 20,398,191 

Intergovernmental 652,174 2,241,479 — — 33,514,843 36,408,496 

Charges for services 28,122,186 308,205 — — 10,807,998 39,238,389 

Fines and forfeitures 14,113,906 — — — — 14,113,906 

Investment income 5,411,464 5,846,459 92,295 2,085,633 2,019,481 15,455,332 

Rental income 5,388,721 — — — 79,225 5,467,946 

Settlement income — 4,429,738 — — — 4,429,738 

Other 7,510,002 2,725,879 7,561 529,915 17,877,844 28,651,201 

Total revenues 247,565,078 15,551,760 897,406 55,616,433 86,521,628 406,152,305 

Expenditures: 

Current: 

General government 44,733,450 336,753 — — 172,477 45,242,680 

Public safety 93,282,777 — — — 3,702,309 96,985,086 

General services 45,437,347 12,278,251 — — 13,248,216 70,963,814 

Cultural and recreation services 33,498,492 23,470 — — 19,523,848 53,045,810 

Library 10,024,203 — — — 74,860 10,099,063 

Housing and community development 29,377,311 105,577 286,696 40,736,829 43,223,836 113,730,249 

Debt service expenditures: 

Principal — — — — 8,375,000 8,375,000 

Interest — — 560,691 — 7,825,827 8,386,518 

Total expenditures 256,353,580 12,744,051 847,387 40,736,829 96,146,373 406,828,220 


over (under) expenditures (8,788,502) 2,807,709 50,019 14,879,604 (9,624,745) (675,915) 

Other financing sources (uses): 

Transfers in (note 11) 72,076,580 — — — 19,255,724 91,332,304 

Transfers out (note 11) (15,135,727) (56,940,051) (343,624) (9,517,708) (9,696,258) (91,633,368) 

Line of credit proceeds — — — — 15,485,324 15,485,324 

Total other financing sources (uses) 56,940,853 (56,940,051) (343,624) (9,517,708) 25,044,790 15,184,260 

Net change in fund balances 48,152,351 (54,132,342) (293,605) 5,361,896 15,420,045 14,508,345 

Fund balance (deficit) at beginning of year 148,801,879 106,062,579 (15,050,909) 48,110,666 138,216,105 426,140,320 

Fund balance (deficit) at end of year $ 196,954,230 51,930,237 (15,344,514) 53,472,562 153,636,150 440,648,665 



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



Net change in fund balances – total governmental funds $ 14,508,345 

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

Capital assets 

1) The acquisition of capital assets requires the use of current financial resources 

but has no effect on net assets 37,516,792 

2) The cost of capital assets is allocated over their estimated useful lives and reported 

as depreciation expense in the statement of activities (22,552,850) 

3) The disposal of capital assets is recorded as an expense in the statement of activities 

but is not recorded in the fund statements (16,441,777) 

Measurement focus: 

4) Change in accrued interest payable 191,901 

5) Principal payments on long-term bonded debt use current financial resources 

but have no effect on net assets 8,375,000 

6) Line of credit draws are recorded as other financing source in the fund statements but 

but are recorded as a long term debt on the statement of net assets (15,485,324) 

7) Long loans notes payable were recorded as other income on the fund statements but 

but are recorded as a long term debt on the statement of net assets (400,000) 

8) Bond premiums are recorded as other financing source in the fund statements but are 

amortized in the statement of activities 20,366 

9) Bond discounts are recorded as other financing uses in the fund statements but are 

amortized in the statement of activities (12,485) 

10) Costs of issuance are recorded as an expenditure in the fund statements but are 


11) Deferred loss on refunding recorded as an expenditure in the fund statements but is 


12) The increase in compensated absences liability does not require the use of current 

financial resources but is recorded as an expense in the statement of activities (505,569) 

13) Elimination of interest related to interfund loans that are recorded as an expenditure 

on the fund statements but eliminated on the government-wide statements 942,420 

14) Revenue recognized for fund statements had been previously recognized in the statement of activities (6,943,827) 

15) Revenue not recognized for fund statements recognized in the statement of activities 86,154,302 

16) The increase in OPEB liability does not require the use of current 

financial resources but is recorded as an expense in the statement of activities (1,173,000) 

17) The increase in pollution remediation liability does not require the use of current 

financial resources but is recorded as an expense in the statement of activities (92,315,000) 

Internal service funds: 

18) Certain internal service funds are used by management to charge the costs of vehicle 

management, information technology, and risk management to individual funds. 

The net revenue of certain internal service funds is reported with 

governmental activities 1,809,515 

Change in net assets (statement of activities, governmental activities) $ (6,678,300) 


20


Statement of Revenues, Expenditures and Changes in 

Fund Balance - Budget and Actual (Non-GAAP Basis) 

General Fund 


21 

Less 

Variance with 

2007-2008 Plus Actual, final budget - 

Original Final encumbered 2008-2009 budgetary positive 

budget budget Actual expenditures encumbrances basis (negative) 

Revenues: 

Property taxes $ 34,858,533 35,364,371 36,763,026 — — 36,763,026 1,398,655 

Sales tax 32,866,500 31,133,629 28,296,696 — — 28,296,696 (2,836,933) 

Other taxes 107,428,800 106,192,127 100,991,562 — — 100,991,562 (5,200,565) 

Licenses and permits 19,504,612 19,504,612 20,315,341 — — 20,315,341 810,729 

Intergovernmental 648,900 753,900 652,174 — — 652,174 (101,726) 

Charges for services 26,768,162 27,363,865 28,122,186 — — 28,122,186 758,321 

Fines and forfeitures 14,047,530 14,131,000 14,113,906 — — 14,113,906 (17,094) 

Investment income 4,700,000 4,807,000 5,411,464 — — 5,411,464 604,464 

Rental income 5,441,455 5,251,455 5,388,721 — — 5,388,721 137,266 

Other 3,822,620 3,822,620 7,510,002 — — 7,510,002 3,687,382 

Total revenues 250,087,112 248,324,579 247,565,078 — — 247,565,078 (759,501) 

Expenditures: 

General government: 

City council 

Salaries 395,949 434,736 434,736 — — 434,736 — 

Supplies 202,222 271,295 208,359 — — 208,359 62,936 

Total city council 598,171 706,031 643,095 — — 643,095 62,936 

City manager 

Salaries 4,670,005 4,670,005 4,577,338 — — 4,577,338 92,667 

Supplies 4,652,674 4,735,663 3,971,209 514,397 375,342 3,832,154 903,509 

Capital outlay 28,000 28,000 30,687 20,963 — 9,724 18,276 

Total city manager 9,350,679 9,433,668 8,579,234 535,360 375,342 8,419,216 1,014,452 

Record and election services 

Salaries 1,316,145 1,316,145 1,263,857 — — 1,263,857 52,288 

Supplies 1,279,633 1,276,883 1,043,442 7,473 40,772 1,076,741 200,142 

Total record and election services 2,595,778 2,593,028 2,307,299 7,473 40,772 2,340,598 252,430 

Finance 

Salaries 6,144,800 6,302,051 5,556,352 — — 5,556,352 745,699 

Supplies 2,967,045 3,205,520 3,108,694 129,271 226,097 3,205,520 — 

Capital outlay 2,595 — — — — — — 

Total finance 9,114,440 9,507,571 8,665,046 129,271 226,097 8,761,872 745,699 


(Continued)




General Fund 


22 

Less 

Variance with 




City attorney 

Salaries $ 8,483,304 8,223,902 7,916,922 — — 7,916,922 306,980 

Supplies 320,982 632,212 632,212 — — 632,212 — 

Capital outlay 49,600 54,580 36,308 1,832 20,103 54,579 1 

Total city attorney 8,853,886 8,910,694 8,585,442 1,832 20,103 8,603,713 306,981 

Human resources 

Salaries 2,560,848 2,560,848 2,325,295 — — 2,325,295 235,553 

Supplies 654,782 658,282 671,020 21,457 4,000 653,563 4,719 

Total human resources 3,215,630 3,219,130 2,996,315 21,457 4,000 2,978,858 240,272 

Information systems 

Salaries 5,077,352 5,077,352 4,746,173 — 1,683 4,747,856 329,496 

Supplies 755,130 760,130 606,979 19,245 8,234 595,968 164,162 

Capital outlay 1,000 1,000 700 — — 700 300 

Total information systems 5,833,482 5,838,482 5,353,852 19,245 9,917 5,344,524 493,958 

Other 2,239,754 2,078,130 819,046 — — 819,046 1,259,084 

Capital improvement 5,030,799 14,627,440 6,784,121 — 1,761,123 8,545,244 6,082,196 

Total general government 46,832,619 56,914,174 44,733,450 714,638 2,437,354 46,456,166 10,458,008 

Public safety: 

Police 

Salaries 59,731,821 61,313,960 61,313,960 — — 61,313,960 — 

Supplies 5,296,072 5,441,641 5,431,199 23,974 34,416 5,441,641 — 

Capital outlay 6,936 966 966 — — 966 — 

Total police 65,034,829 66,756,567 66,746,125 23,974 34,416 66,756,567 — 

Fire 

Salaries 23,108,797 24,625,128 24,625,127 — — 24,625,127 1 

Supplies 2,259,837 2,678,927 1,796,673 7,603 889,857 2,678,927 — 

Capital outlay 70,734 55,444 54,350 — 1,094 55,444 — 

Total fire 25,439,368 27,359,499 26,476,150 7,603 890,951 27,359,498 1 

Capital improvement 234,500 4,452,633 60,502 — 118,861 179,363 4,273,270 

Total public safety 90,708,697 98,568,699 93,282,777 31,577 1,044,228 94,295,428 4,273,271 

(Continued)




General Fund 


23 

Less 

Variance with 




General services: 

Public works 

Salaries $ 7,099,709 7,099,709 6,801,879 — — 6,801,879 297,830 

Supplies 1,870,840 1,870,090 1,796,231 104,918 9,454 1,700,767 169,323 

Capital outlay 8,000 6,000 3,963 — 22 3,985 2,015 

Total public works 8,978,549 8,975,799 8,602,073 104,918 9,476 8,506,631 469,168 

Community maintenance: 

Salaries 15,972,026 14,715,975 14,715,975 — — 14,715,975 — 

Supplies 10,837,466 11,201,392 10,992,342 63,469 141,632 11,070,505 130,887 

Capital outlay 18,000 40,324 40,323 — — 40,323 1 

Total community maintenance 26,827,492 25,957,691 25,748,640 63,469 141,632 25,826,803 130,888 

Capital improvement 288,000 20,317,603 11,086,634 — 3,974,745 15,061,379 5,256,224 

Total general services 36,094,041 55,251,093 45,437,347 168,387 4,125,853 49,394,813 5,856,280 

Cultural and recreation services: 

Community and cultural services 

Salaries 12,127,230 11,886,465 11,886,464 — — 11,886,464 1 

Supplies 19,325,981 19,033,555 19,450,708 1,416,955 999,802 19,033,555 — 

Capital outlay 15,300 15,300 4,884 4,884 4,810 4,810 10,490 

Total community and cultural services 31,468,511 30,935,320 31,342,056 1,421,839 1,004,612 30,924,829 10,491 

Capital improvement 295,000 10,184,184 2,156,436 — 654,613 2,811,049 7,373,135 

Total cultural and recreation services 31,763,511 41,119,504 33,498,492 1,421,839 1,659,225 33,735,878 7,383,626 

Library: 

Salaries 8,030,087 7,757,735 7,757,735 — — 7,757,735 — 

Supplies 2,613,194 2,258,069 2,266,468 269,627 172,822 2,169,663 88,406 

Total library 10,643,281 10,015,804 10,024,203 269,627 172,822 9,927,398 88,406 

(Continued)




General Fund 


Less 

Variance with 




Housing and community development: 

Planning and community development 

Salaries $ 12,240,562 12,283,339 11,614,166 — — 11,614,166 669,173 

Supplies 7,511,954 7,757,653 6,391,470 240,603 1,606,786 7,757,653 — 

Capital outlay 23,612 22,238 32,728 13,000 2,510 22,238 — 

Total planning and community development 19,776,128 20,063,230 18,038,364 253,603 1,609,296 19,394,057 669,173 

Housing and economic development 

Salaries 4,518,798 4,357,172 4,166,071 — — 4,166,071 191,101 

Supplies 7,561,175 7,524,875 7,097,951 313,802 619,414 7,403,563 121,312 

Capital outlay 11,700 9,700 8,665 — — 8,665 1,035 

Total housing and economic development 12,091,673 11,891,747 11,272,687 313,802 619,414 11,578,299 313,448 

Capital improvement — 1,850,231 66,260 — 1,105,461 1,171,721 678,510 

Total housing and community development 31,867,801 33,805,208 29,377,311 567,405 3,334,171 32,144,077 1,661,131 

24 

Total expenditures 247,909,950 295,674,482 256,353,580 3,173,473 12,773,653 265,953,760 29,720,722 

Excess (deficiency) of revenues over 

(under) expenditures 2,177,162 (47,349,903) (8,788,502) (3,173,473) (12,773,653) (18,388,682) 28,961,221 


Transfers in 18,159,342 74,536,453 72,076,580 — — 72,076,580 (2,459,873) 

Transfers out (22,750,372) (15,299,372) (15,135,727) — — (15,135,727) 163,645 

Total other financing sources (4,591,030) 59,237,081 56,940,853 — — 56,940,853 (2,296,228) 

Net change in fund balances (2,413,868) 11,887,178 48,152,351 (3,173,473) (12,773,653) 38,552,171 26,664,993 

Fund balance at the beginning of year 148,801,879 148,801,879 148,801,879 — — 148,801,879 — 

Fund balance at end of year $ 146,388,011 160,689,057 196,954,230 (3,173,473) (12,773,653) 187,354,050 26,664,993 




Fund Balance – Budget and Actual (Non-GAAP Basis) 

Special Revenue Source Fund 


Less 

2007-2008 Plus Actual, Variance – 


budget budget Actual expenditures* encumbrances basis (negative) 

Revenues: 

Intergovernmental $ 2,342,881 2,342,881 2,241,479 — — 2,241,479 (101,402) 

Charges for services 340,000 340,000 308,205 — — 308,205 (31,795) 

Investment income 6,417,000 6,417,000 5,846,459 — — 5,846,459 (570,541) 

Settlement income 5,788,500 5,788,500 4,429,738 — — 4,429,738 (1,358,762) 

Other 1,218,333 12,333,333 2,725,879 — — 2,725,879 (9,607,454) 

Total revenues 16,106,714 27,221,714 15,551,760 — — 15,551,760 (11,669,954) 

Expenditures: 


Capital improvement — 683,562 336,753 — 225,709 562,462 121,100 

Total general government — 683,562 336,753 — 225,709 562,462 121,100 

25 


Supplies 4,685,141 9,666,301 4,800,254 18,946 4,453,081 9,234,389 431,912 

Capital improvement — 68,048,959 7,477,997 — 57,601,934 65,079,931 2,969,028 

Total general services 4,685,141 77,715,260 12,278,251 18,946 62,055,015 74,314,320 3,400,940 


Supplies — 23,470 23,470 — — 23,470 — 

Total cultural and recreation services — 23,470 23,470 — — 23,470 — 


Capital improvement 500,000 3,859,359 105,577 — 27,000 132,577 3,726,782 

Total housing and community development 500,000 3,859,359 105,577 — 27,000 132,577 3,726,782 

Total expenditures 5,185,141 82,281,651 12,744,051 18,946 62,307,724 75,032,829 7,248,822 


over (under) expenditures 10,921,573 (55,059,937) 2,807,709 (18,946) (62,307,724) (59,481,069) (4,421,132) 

Other financing (uses) - transfers out (784,648) (57,233,317) (56,940,051) — — (56,940,051) 293,266 

Net change in fund balance 10,136,925 (112,293,254) (54,132,342) (18,946) (62,307,724) (116,421,120) (4,127,866) 

Fund balance at beginning of year 106,062,579 106,062,579 106,062,579 — — 106,062,579 — 

Fund balance (deficits) at end of year $ 116,199,504 (6,230,675) 51,930,237 (18,946) (62,307,724) (10,358,541) (4,127,866) 



26


Proprietary Fund Financial Statements 

Enterprise Funds are used to account for operations that are financed and operated in a manner similar 

to private business enterprises (a) where the intent is that the costs (expenses, including depreciation) of 

providing goods or services to the general public on a continuing basis be financed or recovered primarily 

through user charges, or (b) where the City has decided that periodic determination of revenues earned, 

expenses incurred and/or net income is appropriate for capital maintenance, public policy, management 

control, accountability or other purposes. 

Wastewater Enterprise Fund – To account for revenues and expenses associated with 

maintaining the sanitary sewer and storm drain systems within the City. 

Big Blue Bus Enterprise Fund – To account for revenues and expenses related to operation of 

the City's Municipal Bus Lines. 

Internal Service Funds – To account for the financing of goods or services provided by one department 

or agency to other departments or agencies of the City or to other governments, on a cost-reimbursement 

basis. 

27



Proprietary Funds 

June 30, 2009 

28 

Total 

Nonmajor Total internal 

Big Blue enterprise enterprise service 

Assets Wastewater Bus funds funds funds 

Current assets: 

Cash and investments $ 22,799,350 24,472,034 41,376,283 88,647,667 69,343,507 

Restricted cash and investments — 4,673,686 10,210,605 14,884,291 — 

Receivables (net, where applicable, of 

allowances for uncollectibles): 

Accounts 2,104,753 11,940,210 5,764,869 19,809,832 31,271 

Interest 145,547 105,812 357,936 609,295 408,457 

Inventory — 914,516 150,210 1,064,726 52,219 

Prepaids 11,675 103,669 14,802 130,146 — 

Total current assets 25,061,325 42,209,927 57,874,705 125,145,957 69,835,454 

Noncurrent assets: 

Restricted cash and investments 1,324,579 — 1,315,049 2,639,628 — 

Restricted cash with fiscal agent 513,406 — — 513,406 — 

Due from other governments, restricted 9,654 — 534,129 543,783 — 

Capital assets (note 7): 

Land 3,189,132 61,085,563 8,156,718 72,431,413 — 

Buildings 251,447 48,249,260 20,840,586 69,341,293 — 

Improvements other than buildings 421,868 2,901,760 19,643,286 22,966,914 — 

Machinery and equipment 1,177,713 90,255,790 5,782,182 97,215,685 34,717,339 

Infrastructure 223,585,422 — 55,403,751 278,989,173 — 

Construction in progress 21,900 68,592,162 3,630,316 72,244,378 100,040 

228,647,482 271,084,535 113,456,839 613,188,856 34,817,379 

Less: accumulated depreciation (39,974,250) (87,500,779) (55,134,077) (182,609,106) (20,305,622) 

Net capital assets 188,673,232 183,583,756 58,322,762 430,579,750 14,511,757 

Advances to other funds (note 11) 88,875 — — 88,875 — 

Bond issuance costs, net 429,116 — — 429,116 — 

Total noncurrent assets 191,038,862 183,583,756 60,171,940 434,794,558 14,511,757 

Total assets $ 216,100,187 225,793,683 118,046,645 559,940,515 84,347,211 

(Continued)


Statement of Net Assets, Continued 


June 30, 2009 

29 

Total 



Liabilities Wastewater Bus funds funds funds 

Current liabilities: 

Accounts payable $ 176,534 3,934,432 2,364,317 6,475,283 561,431 

Accrued liabilities 128,317 3,243,702 1,105,483 4,477,502 199,228 

Contracts payable (retained percentage) — — 363,237 363,237 — 

Claims payable (note 15) — — — — 8,951,032 

Interest payable 513,406 — 26,511 539,917 — 

Current portion of long-term obligations (note 9) 1,545,000 — 266,008 1,811,008 — 

Due to other governments 2,700,000 — — 2,700,000 — 

Due to other funds (note 11) — — 1,376,554 1,376,554 — 

Liabilities payable from restricted assets – 

deposits 410,000 6,894 7,677,600 8,094,494 — 

Total current liabilities 5,473,257 7,185,028 13,179,710 25,837,995 9,711,691 

Noncurrent liabilities: 

Accrued liabilities 36,332 323,145 546,121 905,598 171,707 

Advances from other funds (note 11) — — 12,685,860 12,685,860 — 

Claims payable (note 15) — — — — 19,902,672 

Unearned revenue (note 8) 17,004 1,533,030 262,245 1,812,279 — 

Long-term obligations, net of current portion (note 9) 21,886,702 — 2,837,400 24,724,102 — 

Total noncurrent liabilities 21,940,038 1,856,175 16,331,626 40,127,839 20,074,379 

Total liabilities 27,413,295 9,041,203 29,511,336 65,965,834 29,786,070 

Net assets 

Invested in capital assets, net of related debt 165,670,645 183,583,756 55,219,354 404,473,755 14,511,757 

Restricted for rail system & Prop 1B (note 12) — 8,745,119 — 8,745,119 — 

Unrestricted 23,016,247 24,423,605 33,315,955 80,755,807 40,049,384 

Total net assets $ 188,686,892 216,752,480 88,535,309 493,974,681 54,561,141 

$ 39,573,504 Net assets, business-type activitiesinternal 

service funds 

See accompanying notes to basic financial statements. (1,661,504) Net adjustment to reflect the allocation 

of the internal service funds net loss 

$ 531,886,681 Net assets of business-type activities


Statement of Revenues, Expenses and 

Changes in Fund Net Assets 



30 

Total 



Wastewater Bus funds funds funds 

Operating revenues - charges for services $ 13,751,588 14,391,300 50,933,042 79,075,930 26,073,590 

Operating expenses: 

Personnel services 1,970,012 34,697,975 18,958,109 55,626,096 3,896,852 

Administrative indirect 562,612 3,176,753 3,513,662 7,253,027 507,955 

Contractual services 2,426,223 3,434,835 7,334,404 13,195,462 55,490 

Repairs and maintenance 1,013,385 1,180,646 3,511,022 5,705,053 1,825,465 

Materials and supplies 877,147 6,233,283 8,139,097 15,249,527 2,374,745 

Utilities 14,729 423,084 1,131,176 1,568,989 82,708 

Water purchases — — 3,501,575 3,501,575 — 

Casualty, property and liability costs 168,800 1,880,274 1,093,500 3,142,574 52,700 

Claims expense, net of claims reserve 

adjustments — — — — 11,720,600 

Insurance and bonds — — — — 3,058,131 

Miscellaneous fees and costs — — — — 1,006,447 

Administrative fees and costs — — — — 219,762 

Depreciation 6,130,488 17,351,484 2,911,260 26,393,232 2,812,617 

Other 5,273,273 532,901 3,571,019 9,377,193 — 

Total operating expenses 18,436,669 68,911,235 53,664,824 141,012,728 27,613,472 

Operating income (loss) (4,685,081) (54,519,935) (2,731,782) (61,936,798) (1,539,882) 

Nonoperating revenues (expenses): 

Sales tax proceeds — 34,203,607 — 34,203,607 — 

Investment income 862,458 574,709 1,792,082 3,229,249 2,294,526 

Interest expense (1,214,959) — (520,474) (1,735,433) — 

Gain (loss) on disposal of capital assets — (9,203) (312,298) (321,501) 6,902 

Other 339,144 2,408,942 1,367,784 4,115,870 73,607 

Total nonoperating revenues (expenses) (13,357) 37,178,055 2,327,094 39,491,792 2,375,035 

Income(loss) before capital 

contributions and transfers (4,698,438) (17,341,880) (404,688) (22,445,006) 835,153 

Capital contributions — 53,209,039 — 53,209,039 — 

Transfers in (note 11) 7,237,304 538,597 8,244,511 16,020,412 691,800 

Transfers out (note 11) (833,700) (387,300) (8,692,395) (9,913,395) (691,800) 

Change in net assets 1,705,166 36,018,456 (852,572) 36,871,050 835,153 

Net assets at beginning of year 186,981,726 180,734,024 89,387,881 457,103,631 53,725,988 

Net assets at end of year $ 188,686,892 216,752,480 88,535,309 493,974,681 54,561,141 

$ 36,871,050 Change in net assets 

(974,363) Net adjustment to reflect the consolidation 

of internal service fund activities related to 

See accompanying notes to basic financial statements. enterprise funds 

$ 35,896,687 Change in net assets of business-type activities


Statement of Cash Flows 



31 

Total 




Cash flows from operating activities: 

Cash received from customers $ 14,174,795 14,391,300 50,769,332 79,335,427 26,123,883 

Cash payments for materials and services (12,344,367) (17,315,637) (31,393,395) (61,053,399) (9,013,505) 

Cash paid for claims and related services — — — — (9,907,755) 

Cash payments to employees for services (2,048,364) (34,700,741) (18,859,997) (55,609,102) (3,967,469) 

Other revenue received 339,144 2,408,943 1,367,784 4,115,871 73,607 

Net cash provided by operating activities 121,208 (35,216,135) 1,883,724 (33,211,203) 3,308,761 

Cash flows from noncapital financing activities: 

Sales tax proceeds — 35,902,303 — 35,902,303 — 

Advances from other funds — — 1,599,262 1,599,262 — 

Repayment of advances made to other funds 6,514,322 — 520,298 7,034,620 — 

Repayment of advances received from other funds (6,500,000) — — (6,500,000) — 

Transfers in 7,237,304 538,597 8,244,511 16,020,412 691,800 

Transfers out (833,700) (387,300) (8,692,395) (9,913,395) (691,800) 

Net cash provided by noncapital 

financing activities 6,417,926 36,053,600 1,671,676 44,143,202 — 

Cash flows from capital and related financing activities 

Capital contributions received — 50,410,034 — 50,410,034 — 

Acquisition and construction of capital assets (11,082,213) (39,333,970) (3,138,348) (53,554,531) (3,683,572) 

Proceeds from sale of capital assets (55,077) 8,766 204,041 157,730 108,699 

Reduction in long-term obligations (1,239,486) — (259,830) (1,499,316) — 

Payments due to other governments 2,700,000 — (534,129) 2,165,871 — 

Interest paid on long-term obligations (1,237,459) — (522,533) (1,759,992) — 

Net cash used in capital 

and related financing activities (10,914,235) 11,084,830 (4,250,799) (4,080,204) (3,574,873) 

Cash flows from investing activities – interest received 

on investments 934,394 578,904 2,023,162 3,536,460 2,528,131 

Net cash provided by investing activities 934,394 578,904 2,023,162 3,536,460 2,528,131 

Net increase (decrease) in cash and cash equivalents (3,440,707) 12,501,199 1,327,763 10,388,255 2,262,019 

Cash and cash equivalents at beginning of year 28,078,042 16,644,522 51,574,174 96,296,738 67,081,488 

Cash and cash equivalents at end of year $ 24,637,335 29,145,721 52,901,937 106,684,993 69,343,507 

Cash and investments $ 22,799,350 24,472,034 41,376,283 88,647,667 69,343,507 

Restricted cash and investments 1,837,985 4,673,686 11,525,654 18,037,325 — 

Total cash and cash equivalents $ 24,637,335 29,145,720 52,901,937 106,684,992 69,343,507 

(Continued)


Statement of Cash Flows, Continued 



32 

Total 




Reconciliation of operating income (loss) to net 

cash provided by (used in) operating activities: 

Operating income (loss) $ (4,685,081) (54,519,936) (2,731,782) (61,936,799) (1,539,882) 

Adjustments to reconcile operating income 

(loss) to net cash provided by (used in) 

operating activities: 

Add depreciation 6,130,488 17,351,484 2,911,260 26,393,232 2,812,617 

Change in assets and liabilities: 

(Increase) decrease in accounts receivable 13,207 — 62,710 75,917 50,293 

(Increase) decrease in prepaids 3,184 (23,588) (7,292) (27,696) 26,296 

(Increase) decrease in inventory — (74,888) 270,839 195,951 15,252 

Increase (decrease) in accounts payable (2,028,386) (355,355) (453,018) (2,836,759) 90,389 

Increase (decrease) in deferred revenue 17,004 262,245 279,249 — 

Increase (decrease) in accrued liabilities (79,141) 75,467 63,384 59,710 (16,464) 

Increase (decrease) in deposits 410,000 (30) (169,330) 240,640 — 

Increase (decrease) in contracts payable — — 272,196 272,196 — 

Increase (decrease) in claims payable — — — — 1,796,653 

Increase (decrease) in accrued 

noncurrent liabilities 789 (78,232) 34,728 (42,715) — 

Other nonoperating revenue received 339,144 2,408,943 1,367,784 4,115,871 73,607 

Total adjustments 4,806,289 19,303,801 4,615,506 28,725,596 4,848,643 

Net cash provided by (used in) 

operating activities $ 121,208 (35,216,135) 1,883,724 (33,211,203) 3,308,761 

There were no significant noncash capital financing or investing activities for the year ended June 30, 2009. 



Fiduciary Fund Financial Statements 

Agency Funds are custodial in nature and used to receive and disburse funds for an entity/individual, 

which is not part of the City. 

33


Statement of Fiduciary Assets and Liabilities 

Fiduciary Funds 

June 30, 2009 

Assets 

Total 

Agency Funds 

Restricted cash and investments (note 5) $ 3,896,199 

Accounts receivable 49,861 

Total assets $ 3,946,060 

Liabilities 

Accounts payable and accrued liabilities $ 3,946,060 

Total liabilities $ 3,946,060 


34


Notes to Basic Financial Statements, Continued 


(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

A. THE REPORTING ENTITY 

The City of Santa Monica, California (City) was incorporated November 30, 1886. The City 

operates under a Council-Manager form of government and provides traditional municipal services 

as authorized by its charter as well as various enterprise services. As required by accounting 

principles generally accepted in the United States of America (GAAP), the accompanying basic 

financial statements present the activities of the City and its component units. The component units 

discussed below are included in the City’s reporting entity because of the significance of their 

operations or financial relationships with the City. None are considered major component units for 

reporting purposes. 

As required by GAAP, these basic financial statements present the City and its component units, 

entities for which the City is considered to be financially accountable. The following entities are 

reported as blended component units because they have substantively the same governing board as 

the primary government. 

Blended component units, although legally separate entities are, in substance, part of the City’s 

operations and data from these units are combined with data of the City. Additional detailed 

information and/or separately issued financial statements for these component units can be obtained 

from the City’s Director of Finance. 

The Redevelopment Agency of the City of Santa Monica (Agency) was established by the City of 

Santa Monica City Council in 1957 pursuant to the Community Redevelopment Law of California 

to eliminate blight and to promote economic revitalization within designated project areas of the 

City. 

The Parking Authority of the City of Santa Monica (Authority) was established by the City in 1950 

and maintains and operates parking lots and parking structures. 

The Housing Authority of the City of Santa Monica (Housing Authority) was established by the City 

in 1975 to address unsanitary and unsafe inhabited dwelling accommodations and the shortage of 

affordable safe and sanitary dwelling accommodations for persons with low incomes. Since 

January 1, 1989, the Housing Authority has administered the Section 8 Housing Assistance 

Payments Program funded by the United States Department of Housing and Urban Development on 

behalf of the City. 

Following are brief descriptions of organizations created in 1984 as nonprofit public benefit 

corporations. These basic financial statements do not present these entities for which the City may 

meet criteria for discrete presentation because the economic resources received or held by an 

individual organization are not significant to the primary government. Each of the governing bodies 

acts on behalf of the City through members appointed by the City of Santa Monica City Council for 

the benefit of the citizens of Santa Monica. Separate financial statements for each can be obtained 

from the City’s Director of Finance. 

The Pier Restoration Corporation maintains and operates the public educational and recreational 

facility in the City commonly known as the Santa Monica Pier. 

35




The Bayside District Corporation, formerly the Third Street Development Corporation, combats 

community deterioration by developing and improving the aging areas in and around the City’s 

central business district and coordinating public and private sector activities. 

The Santa Monica Arts Foundation promotes the arts by raising funds to finance art programs. On 

June 8, 1990, the City Council merged the City’s Arts Commission with the Santa Monica Arts 

Foundation. 

B. BASIC FINANCIAL STATEMENTS 

Basic financial statements consist of the following: 

• Government-wide financial statements, 

• Fund financial statements, and 

• Notes to the basic financial statements. 

The government-wide financial statements consist of the statement of net assets and the statement of 

activities and report information on all of the non-fiduciary activities of the primary government and 

its component units. As a general rule, the effect of interfund activity has been eliminated from the 

government-wide financial statements. All internal balances in the statement of net assets have 

been eliminated, with the exception of those representing balances between the governmental 

activities and the business-type activities, which are presented as internal balances and eliminated in 

the total government column. In the statement of activities, internal service fund transactions have 

been eliminated; however, those transactions between governmental and business-type activities 

have not been eliminated. Exceptions to this general rule are charges between the City’s Water 

Fund and various other functions of the government. Elimination of these charges would distort the 

direct costs and program revenues reported for the various functions concerned. Governmental 

activities, which normally are supported by taxes and intergovernmental revenues, are reported 

separately from business-type activities, which rely to a significant extent on fees and charges for 

support. 

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 or a significant portion of their costs through user fees and 

charges (business-type activities). The governmental activities of the City include public safety 

(police and fire), streets, public improvements, library, cultural, recreation and parks, planning and 

zoning, housing and community development and general administrative support services. The 

business-type activities of the City include water, wastewater, storm water, solid waste 

management, pier, civic auditorium, airport, special aviation services, cemetery, bus lines, and 

parking structures and lots. 

The statement of activities demonstrates the degree to which the direct and indirect expenses of a 

given function are offset by program revenues. Direct expenses are those that are clearly 

identifiable with a specific function or segment. Indirect expenses are allocated based on the annual 

cost allocation plan. Program revenues include: 1) charges to customers or applicants who 

purchase, use, or directly benefit from goods, services, or privileges provided by a given function or 

segment, and 2) grants and contributions, including special assessments that are restricted to 

meeting the operational or capital requirements of a particular function. Taxes and other items not 

properly included among program revenues are reported instead as general revenues. 

36




Separate fund financial statements are provided for governmental funds, proprietary funds and 

fiduciary funds, even though the latter are excluded from the government-wide financial statements. 

Major individual governmental funds and major individual enterprise funds are reported as separate 

columns in the fund financial statements. 

C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT 

PRESENTATION 

The government-wide financial statements are reported using the economic resources measurement 

focus and the accrual basis of accounting, as are the proprietary funds financial statements. 

Revenues are recorded when earned and expenses are recorded when a liability is incurred, 

regardless of the timing of related cash flows. Fiduciary (Agency) funds report only assets and 

liabilities and therefore have no measurement focus. 

Governmental funds financial statements are reported using the current financial resources 

measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon 

as they are both measurable and available. Revenues are considered to be available when they are 

collectible within the current period or soon enough thereafter to pay liabilities of the current period. 

The City in general considers revenues available if they are collected within 60 days. Additionally, 

grants and similar items are recognized as revenue as soon as all eligibility requirements have been 

met. Expenditures are recorded when the related fund liability is incurred, except for unmatured 

interest on general long-term debt which is recognized when due, and certain compensated absences 

and claims and judgments which are recognized when payment is due. 

Sales taxes, franchise taxes, licenses, interest, special assessments, charges for services and other 

miscellaneous revenue are all considered to be susceptible to accrual and have been recognized as 

revenue in the current fiscal period. Entitlements and shared revenues are recorded at the time of 

receipt or earlier if susceptible to accrual criteria. Expenditure-driven grants are recognized as 

revenue when the qualifying expenditures have been incurred, all other eligibility requirements have 

been met and are recorded at the time of receipt or earlier, and the susceptible to accrual criteria are 

met. All other revenue items are considered to be measured and available only when cash is 

received by the government. 

The accounts of the City are organized on the basis of funds. A fund is an independent fiscal and 

accounting entity with a self-balancing set of accounts. Fund accounting segregates funds 

according to their intended purpose and is used to aid management in demonstrating compliance 

with finance-related legal and contractual provisions. The minimum number of funds is maintained 

consistent with legal and managerial requirements. 

The City reports the following major governmental funds: 

The General Fund is the City’s primary operating fund. It accounts for all the financial resources 

and the legally authorized activities of the City, except those required to be accounted for in other 

specialized funds. 

The Special Revenue Source Fund (Special Revenue Fund type) accounts for receipt and 

expenditure of monies collected for specific uses. 

37




The Downtown Redevelopment Project Fund (Capital Projects Fund type) accounts for 

activities of the downtown redevelopment project area of the Redevelopment Agency of the City of 

Santa Monica. 

The Earthquake Redevelopment Project Fund (Capital Projects Fund type) accounts for 

activities of the earthquake redevelopment project area of the Redevelopment Agency of the City of 

Santa Monica. 

The City reports the following major proprietary funds: 

The Wastewater Enterprise Fund accounts for the activities of maintaining sanitary sewer and 

storm drain systems within the City. 

The Big Blue Bus Enterprise Fund accounts for the activities of the City’s municipal bus lines. 

Additionally, the City reports the following fund types: 

Permanent Funds account for resources that are legally restricted to the extent that only earnings, 

not principal, may be used for purposes that support specific programs. 

Internal Service Funds account for vehicle operations, risk management, and information 

technology and communications operations that provide services to other departments of the City on 

a cost reimbursement basis. 

Fiduciary Funds, which consist solely of Agency funds, account for assets held by the City as a 

trustee or as an agent for individuals or other government units. The only fiduciary fund type used 

by the City is the Agency Fund type. Agency funds are custodial in nature and do not involve 

measurement of results of operations. Such funds are unlike all other types of funds, reporting only 

assets and liabilities. These funds account for assets held by the City in an agency capacity for 

individuals or other governmental units, including development fees collected on behalf of the 

school district, various employee payroll deductions that will be remitted to various agencies and 

other assets held by the City in an agency capacity. 

Enterprise funds have elected not to apply Financial Accounting Standards Board (FASB) 

Statements and interpretations issued after November 30, 1989. The enterprise funds apply all 

applicable GASB pronouncements as well as statements and interpretations of FASB, the 

Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on 

Accounting Procedure issued on or before November 30, 1989, unless those pronouncements 

conflict with or contradict GASB pronouncements. 

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating 

revenues and expenses generally result from providing services and producing and delivering goods 

in connection with a proprietary fund's principal ongoing operations. The principal operating 

revenues of the enterprise funds and of the City’s internal service funds are charges to customers for 

sales and services. Operating expenses for enterprise funds and internal service funds include the 

cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues 

and expenses not meeting this definition are reported as non-operating revenues and expenses. 

38




When both restricted and unrestricted resources are available for use, it is the City's policy to use 

restricted resources first, and then unrestricted resources as they are needed. 

D. ASSETS, LIABILITIES, NET ASSETS OR EQUITY 

Cash and Investments 

In order to maximize the flexibility of its investment program and to aid in cash budgeting, the City 

pools the cash of all funds, except for monies deposited with fiscal agents in accordance with related 

bond indentures. The cash and investments balance in each fund represents that fund's equity share 

of the City's cash and investment pool. As the City places no restrictions on the deposit or 

withdrawal of its equity from the pool by a particular fund, the pool operates like a demand deposit 

account for the participating funds. 

Interest income earned on pooled cash and investments is allocated quarterly to the various funds 

based on quarter-end balances and is adjusted at year-end. Interest income on restricted cash and 

investments with fiscal agents is credited directly to the related fund. 

The City's investments are carried at fair value, except for guaranteed investment contracts, which 

are carried at cost because they are not transferable and they have terms that are not affected by 

changes in market interest rates. The fair value of equity and debt securities is determined based on 

sales prices or bid-and-asked quotations from SEC-registered securities exchanges or NASDAQ 

dealers. The fair value of the City's share of LAIF is reported to the City on a quarterly basis. LAIF 

operates in accordance with laws and regulations of the State of California. The reported value of 

the pool is the same as the fair value of pool shares. Changes in fair value are allocated to each 

participating fund on an annual basis. 

For purposes of the statement of cash flows, the City has defined cash and cash equivalents to be 

change and petty cash funds, equity in the City's cash and investment pool, and restricted, nonpooled 

investments with initial maturities of three months or less. 

Receivables and Payables 

Activity between funds that are representative of lending/borrowing arrangements outstanding at the 

end of the fiscal year are referred to as interfund receivables/interfund payables, i.e., the current 

portion of interfund loans, or advances to/from other funds, the non-current portion of interfund 

loans. All other outstanding balances between funds are reported as interfund receivables/interfund 

payables. Any residual balances outstanding between the governmental activities and the businesstype 

activities are reported in the government-wide financial statements as internal balances. 

Advances between funds, as reported in the fund financial statements, are offset by a reservation of 

fund balance in the applicable governmental funds to indicate that they are not available for 

appropriation and are not expendable available financial resources. 

All trade receivables are shown net of an allowance for uncollectible accounts and estimated 

refunds due. As of June 30, 2009 the allowance for uncollectible accounts for governmental and 

business-type activities is $229,589 and $258,584 respectively. 

Unbilled service receivables are accrued for at year-end. 

39




Property Taxes 

Assessed property values are determined on an annual basis for the period July 1 to June 30 by the 

Los Angeles County Assessor as of January 1. Article XIIIA of the State Constitution (Proposition 

13, approved by voters in June 1978) limits the real property tax rate to 1% of the full market cash 

value plus rates imposed to fund indebtedness approved by the voters. Locally assessed property is 

appraised at the 1975-76 full cash value, the base year value, and is adjusted each year after 1975 by 

the change in the consumer price index, not to exceed an increase of 2%. Property is reappraised to 

current full value upon either a change in ownership or new construction. If property values decline 

below the base year value, the value is adjusted to reflect the lower value. Taxes are levied annually 

on July 1 and become a lien on real property at January 1. Taxes are due November 1 and February 

1 and are delinquent if not paid by December 10 and April 10, respectively, at which time 

applicable penalties and interest are assessed. 

Inventories and Prepaid Items 

All materials and supplies inventories are valued at cost using the average cost method. Inventory 

in the General Fund is recorded as expenditures when consumed rather than when purchased. 

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded 

as prepaid items in both government-wide and fund financial statements. 

Restricted Assets 

Certain proceeds of the City's bonds, as well as certain resources set aside for their repayment, are 

classified as restricted assets on the balance sheet because they are maintained in separate bank 

accounts and their use is limited by applicable bond covenants. 

In the absence of specific statutory provisions governing the issuance of bonds, certificates or 

leases, these bond monies may be invested in accordance with the ordinance, resolutions or 

indentures specifying the types of investments its trustees or fiscal agents may make. These 

ordinances, resolutions and indentures are generally more restrictive than the City's general 

investment policy. In no instance have additional types of investments been authorized that are not 

permitted by the City's general investment policy. 

Capital Assets 

Capital assets, which include land, buildings and improvements, equipment, and infrastructure 

assets (e.g., roads, sidewalks, curbs and gutters and similar items), are reported in the applicable 

governmental or business-type activities columns in the government-wide financial statements. 

Capital assets are defined by the City as assets with an initial individual cost of $15,000 or more and 

an estimated useful life of two years or longer. The City defines buildings, improvements other 

than buildings, and infrastructure as assets with an individual cost of $100,000 or more and an 

estimated useful life of two years or longer. Such assets are recorded at historical cost. Donated 

capital assets are recorded at estimated fair market value at the date of donation. The cost of normal 

maintenance and repairs that do not add to the value of the asset or materially extend assets lives are 

not capitalized. 

40




Major outlays for capital assets and improvements are capitalized as projects are constructed. 

Interest incurred during the construction phase of capital assets of business-type activities is 

included as part of the capitalized value of the assets constructed. No interest was capitalized 

during the year ended June 30, 2009. 

Capital assets of the City are depreciated using a straight-line method over the following estimated 

useful lives: 

Assets 

Years 

Buildings 5 to 85 

Improvements other than buildings 2 to 50 

Infrastructure 15 to 75 

Utility systems 20 to 100 

Machinery and equipment 2 to 30 

The City has elected not to capitalize its collection of artwork. GASB 34 waives the requirement 

for artwork capitalization if the collection meets all the following conditions: 

• The collection is held for reasons other than financial gain. 

• The collection is protected, kept unencumbered, cared for, and preserved. 

• The collection is subject to an organizational policy requiring that the proceeds from sales of 

collection items be used to acquire other items for collections. 

The City’s artwork collection meets the above criteria and therefore qualifies for the exemption 

from the capitalization requirement. The collection includes both permanent and portable artworks, 

artworks integrated into overall projects, murals, and stand-alone permanently installed paintings 

and sculptures, art integrated into the design of public works projects (not stand-alone), and a 

contemporary collection of almost 100 portable artworks which are on display in public areas of 

City facilities. 

Lease Obligations 

The City leases various assets under both operating and capital lease agreements. In the 

government-wide and proprietary funds financial statements, capital leases and the related lease 

obligations are reported as liabilities in the applicable governmental activities or proprietary funds 

statement of net assets. 

Compensated Absences 

It is the City's policy to permit employees to accumulate earned but unused vacation and sick leave 

benefits up to a maximum determined by bargaining unit agreements. Employees are paid 100% of 

their accumulated vacation when they terminate employment for any reason. All vacation is 

accrued when incurred in the government-wide and proprietary fund financial statements. A 

liability is reported in the governmental funds only if they have matured, for example, as a result of 

employee resignations or retirements. Additionally, employees of the United Transportation Union 

are able to exchange unused sick days balances for equal dollars of medical insurance premiums. In 

order to qualify the employee must have 10 years of service at retirement and at least 50 days of 

unused sick leave. 

41




Long-Term Liabilities 

In the government-wide financial statements and proprietary funds financial statements, long-term 

debt and other long-term obligations are reported as liabilities in the applicable governmental 

activities, business-type activities, or proprietary fund type statement of net assets. Initial-issue 

bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of 

the bonds using the straight-line method. The difference between the reacquisition price of 

refunding bonds and the net carrying amount of refunded debt (deferred amount on refunding) is 

amortized over the shorter of the lives of the refunding debt or remaining life of the refunded debt. 

Bonds payable are reported net of the unamortized portion of applicable premium, discount or 

deferred amount on refunding. Bond issuance costs, including underwriters' discount, are reported 

as deferred bond issuance costs. Amortization of bond premiums or discounts, issuance costs and 

deferred amounts on refunding are included in interest expense when due. 

In the governmental funds financial statements, bond premiums, discounts and issuance costs are 

recognized during the period issued. The face amount of debt issued is reported as other financing 

sources. Premiums received are reported as other financing sources, while discounts are reported as 

other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds 

received, are reported as debt service expenditures. Interest and principal payments are reported as 

debt service expenditures. 

Net Assets and Fund Equity 

In the government-wide financial statements and proprietary funds financial statements, net assets 

are reported in three categories: net assets invested in capital assets, net of related debt, restricted 

net assets and unrestricted net assets. Net assets invested in capital assets, net of related debt 

represents capital assets less accumulated depreciation less outstanding principal of related debt. 

Net assets invested in capital assets, net of related debt does not include the unspent proceeds of 

capital debt. Restricted net assets represent net assets restricted by parties outside of the City (such 

as creditors, grantors, contributors, laws and regulations of other governments) and include unspent 

proceeds of bonds issued to acquire or construct capital assets. The nonexpendable portion of 

permanent funds is reported as a component of restricted net assets. The City's other restricted net 

assets are temporarily restricted (ultimately expendable) assets. All other net assets are considered 

unrestricted. 

In the fund financial statements, governmental funds report reservations of fund balance for 

amounts that are not available for appropriation or are legally restricted by outside parties for use 

for a specific purpose. Designations of fund balance represent tentative management plans that are 

subject to change. 

Self-Insurance Program 

The City has self-insurance programs to provide for general liability, bus and automobile liability, 

and workers' compensation claims. These activities are accounted for in self-insurance internal 

service funds. 

Premiums are charged to individual funds and are designed to cover future expenses. The City's 

Risk Manager oversees the self-insurance programs. It is his or her duty to ensure that programs are 

operated in accordance with City policies. The City’s Risk Manager also provides budget guidance 

42




and case reserves and claims analysis. It is the City's intent to maintain cash reserves in the selfinsurance 

funds equal to or greater than estimated losses. 

Use of Estimates 

The preparation of basic financial statements in conformance with GAAP requires management to 

make estimates and assumptions that affect the amounts reported in the basic financial statements 

and accompanying notes. Actual results may differ from those estimates. 

(2) BUDGETARY AND LEGAL COMPLIANCE 

The City Council is required to adopt an annual budget resolution by June 30 each fiscal year for the 

General Fund and each special revenue fund (except the Rent Control and Asset Seizure Funds). The 

City Council also approves any revisions that alter the total expenditures of any major object or program 

category (salaries, supplies including capital outlay or capital improvements) by department within the 

same fund (the legal level of budgetary control). 

The City Council also approves annual operating budgets for the City’s proprietary, capital projects and 

internal service funds to facilitate management evaluation and control. 

The budget is prepared on a non-GAAP budgetary basis, which considers encumbrances outstanding at 

year end as an expenditure of that year. Encumbrances outstanding at the beginning of a fiscal year, 

which were recognized as budgetary expenditures in the prior year, are recognized as GAAP-basis 

expenditures but not as budgetary expenditures unless re-appropriated. It is the City’s policy to only reappropriate 

capital encumbrances and unencumbered balances of specific capital appropriations. In 

addition, capital leases are budgeted on a cash basis, whereas GAAP requires the full amount of the 

leased asset purchased to be shown as an expenditure of the current year. Appropriations in 

governmental funds outstanding at year end lapse, except for encumbered amounts, for which fund 

balances are reserved at year-end for governmental funds. 

A Comprehensive Annual Financial Report Budget Supplement is prepared to reconcile 

expenditures/expenses at the legal level of control to the summarized amounts presented in the 

Comprehensive Annual Financial Report and can be obtained from the Finance Department. 

43




(3) RECONCILIATION OF FUND FINANCIAL STATEMENTS TO GOVERNMENT-WIDE 

FINANCIAL STATEMENTS 

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

different from those reported for governmental funds in the fund balance sheet. The following provides 

a reconciliation of those differences: 

Total 

Assets 

Total 

governmental 

funds 

Long-term 

assets and 

liabilities (1) 

governmental 

activities 

internal service 

funds (2) 

Other 

adjustments 

and 

eliminations (3) 

Statement of net 

assets totals 

Cash and investments $ 440,747,154 

— 40,136,369 — 480,883,523 

Receivables (net, where applicable, 

of allowances for uncollectibles): 

Accounts 9,120,434 — 2,408 — 9,122,842 

Notes 80,299,802 — — — 80,299,802 

Property taxes 5,227,525 — — — 5,227,525 

Interest 2,157,015 — 240,954 — 2,397,969 

Other governments 7,232,423 — — — 7,232,423 

Internal balances — — 1,661,504 13,973,539 15,635,043 

Due from other funds 1,376,554 — — (1,376,554) — 

Inventory 1,381,715 — — — 1,381,715 

Prepaids 320,072 — — — 320,072 

Cash with fiscal agent 26,971,390 — — — 26,971,390 

Advances to other funds 46,459,621 — — (46,459,621) — 

Bond issuance costs, net — 2,575,274 — — 2,575,274 

Capital assets, net — 722,841,322 827,977 — 723,669,299 

Total assets $ 621,293,705 725,416,596 42,869,212 (33,862,636) 1,355,716,877 

Liabilities and Fund Balances/Net Assets 

Liabilities: 


— 203,400 — 10,443,111 

Accrued liabilities 5,591,917 92,315,000 69,390 — 97,976,307 

Accrued interest payable — 3,631,317 — — 3,631,317 

Contracts payable (retained percentage) 2,474,232 — — — 2,474,232 

Due to other governments 5,734,148 — — — 5,734,148 

Deferred revenue 122,279,192 — — (106,337,103) 15,942,089 

Deposits payable from restricted assets 463,204 — — — 463,204 

Compensated absences due within one year — 5,073,777 — — 5,073,777 

Compensated absences due in more than 

one year — 5,026,336 — — 5,026,336 

Claims payable due within one year — — 7,013,023 — 7,013,023 

Claims payable due in more than one year — — 18,934,258 — 18,934,258 

Long-term debt due within one year — 7,530,000 — — 7,530,000 

Long-term debt due in more than one year — 164,046,776 — — 164,046,776 

Accrued OPEB liability — 2,415,000 — — 2,415,000 

Advances from other funds 33,862,636 — — (33,862,636) — 

Total liabilities 180,645,040 280,038,206 26,220,071 (140,199,739) 346,703,578 

Total fund balances/net assets 440,648,665 445,378,390 16,649,141 106,337,103 1,009,013,299 

Total liabilities and fund balance/net assets $ 621,293,705 725,416,596 42,869,212 (33,862,636) 1,355,716,877 

44




1) 

Capital assets used in governmental activities are not current financial resources 

and, therefore, are not reported in the balance sheet. Capital assets of internal 

service funds of $827,977, net of accumulated depreciation, are not included in 

this amount. 

$ 964,035,711 

Less accumulated depreciation (241,194,389) 

722,841,322 

Bond issue costs to be amortized over the life of the debt 2,575,274 

Accrued liabilities, OPEB costs, are not due and payable in the current period (2,415,000) 

and therefore, are not reported in the balance sheet 

Long-term liabilities are not due and payable in the current period and, 

therefore, are not reported in the balance sheet. 

Tax allocation bonds $ (72,900,000) 

General obligation bonds (18,455,000) 

Revenue bonds (67,880,000) 

Loans payable (400,000) 

Line of credit (15,485,324) 

Deferred loss on refunding 3,589,661 

Accrued interest on long-term debt (3,631,318) 

Unamortized premium on long-term debt (248,110) 

Unamortized issue discount on long-term debt 201,998 

Employee compensated absences (10,100,113) 

Accrued pollution remediation costs (92,315,000) 

Total long-term liabilities (277,623,206) 

$ 445,378,390 

2) 

Internal service funds are used by management to charge the costs of 

information technology and communications operations, self-insurance 

comprehensive, auto and workers' compensation to individual funds. The assets 

and liabilities of these internal service funds are included in the governmental 

activities on the statement of net assets. 

$ 

14,987,637 

Adjustments for Internal Service Funds are necessary to "close" those funds by 

recording charges to and payments from business-type activities to completely 

cover the Internal Service Funds' costs for the year. 

$ 

1,661,504 

16,649,141 

3) Other adjustments and eliminations: 

Other long-term assets are not available to pay for current period expenditures 

and, therefore, are deferred in the funds and recognized as revenue in the 

statement of activities. 

$ 106,337,103 

$ 106,337,103 

45




Amounts reported for business-type activities in the government-wide statement of net assets are 

different from those reported for enterprise funds in the fund statement of net assets. The following 

provides a reconciliation of those differences: 

Assets 

Total business- Other 

Total type internal adjustments Statement of 

enterprise service and net assets 

funds funds (1) eliminations totals 

Cash and investments $ 88,647,667 29,207,138 — 117,854,805 

Receivables (net, where applicable, 

of allowances for uncollectibles): 

Accounts 19,809,832 28,863 — 19,838,695 

Interest 609,295 167,503 — 776,798 

Internal balances — (1,661,504) (13,973,539) (15,635,043) 

Inventory 1,064,726 52,219 — 1,116,945 

Prepaids 130,146 — — 130,146 

Restricted cash and investments 17,523,919 — — 17,523,919 

Restricted cash with fiscal agent 513,406 — — 513,406 

Due from other governments, restricted 543,783 — — 543,783 

Advances to other funds 88,875 — (88,875) — 

Bond issuance costs, net 429,116 — — 429,116 

Capital assets, net 430,579,750 13,683,780 — 444,263,530 

Total assets 559,940,515 41,477,999 (14,062,414) 587,356,100 

Liabilities 

Accounts payable $ 6,475,283 659,576 — 7,134,859 

Accrued liabilities 5,383,100 — (2,912,807) 2,470,293 

Accrued interest payable 539,917 — — 539,917 

Contracts payable (retained percentage) 363,237 — — 363,237 

Due to other governments 2,700,000 — — 2,700,000 

Due to other funds 1,376,554 — (1,376,554) — 

Deferred revenue 1,812,279 — — 1,812,279 

Liabilities payable from restricted assets 8,094,494 — — 8,094,494 

Advances from other funds 12,685,860 — (12,685,860) — 

Compensated absences due within one year — — 1,909,237 1,909,237 

Compensated absences due in more than one year — — 1,003,570 1,003,570 

Claims payable due within one year — 1,938,009 — 1,938,009 

Claims payable due in more than one year — 968,414 — 968,414 

Long-term debt due within one year 1,811,008 — — 1,811,008 

Long-term debt due in more than one year 24,724,102 — — 24,724,102 

Total liabilities 65,965,834 3,565,999 (14,062,414) 55,469,419 

Net Assets 

$ 493,974,681 37,912,000 — 531,886,681 

1) 

Internal service funds are used by management to charge the costs of vehicle 

management, information technology and risk management to individual funds. 

The assets and liabilities of the vehicle management and self-insurance bus internal 

service funds are included in business-type activities in the statement of net assets. 

$ 39,573,504 

Adjustment for Internal Service Funds are necessary to "close" those funds for 

charges to and payments from participating governmental-type activities to 

completely cover the Internal Service Funds' costs for the year. 

$ 

(1,661,504) 

46




(4) POLLUTION REMEDIATION 

On December 1, 2006 the City entered into a settlement agreement with a consortium of oil companies 

in relation to methyl tertiary butyl ether (“MTBE”) contamination that had occurred at the City’s 

Charnock Well Field. The agreement called for the oil companies to pay the City $131.0 million in 

exchange for the obligation by the City to treat any water which does not meet applicable standards for 

MTBE, tertiary butyl alcohol (“TBA”) and related petroleum hydrocarbons promulgated by the 

California Department of Health Services. 

To meet this treatment obligation the City is constructing a remediation plant to filter the water using 

the proceeds of the settlement. 

The City measured the liability by the cost of construction/remediation contracts which include a 

contingency of 10% for unforeseen costs and therefore the City’s expected outlays are $85,481,000 

which is the present value of the cost of the contracts plus the cost of the plant operations. 

The pollution remediation expenditures have no future value once the remediation is complete; therefore 

the City has recorded these amounts as remediation liability and expense. 

Because the MTBE remediation is fully funded by a settlement whose proceeds have already been 

received, $85,481,000 has been recognized as income during the year. 

Additionally, the City engages in an ongoing program of pollution remediation related to its various 

properties. Two such sites are currently undergoing remediation in the form of either soil or vaporous 

contaminant removal or containment. By State law these occurrences are required to be reported to 

California Department of Health Services. 

As of June 30, 2009, total remediation expenses of $92,315,000 have been recorded in the Statement of 

Activities and as a component of accrued liabilities on the Statement of Net Assets. 

(5) CASH AND INVESTMENTS 

Cash and investments as of June 30, 2009 are classified in the accompanying financial statements as 

follows: 

Statement of net assets: 

Cash and investments $ 598,738,328 

Restricted cash and investments 17,523,919 

Restricted cash with fiscal agent 27,484,796 

Fiduciary funds: 

Restricted cash and investments 3,896,199 

Total cash and investments $ 647,643,242 

47




Cash and investments as of June 30, 2009 consist of the following: 

Cash on hand $ 56,680 

Deposits with financial institutions (709,878) 

Investments 648,296,440 

Total cash and investments $ 647,643,242 

Investments Authorized by the California Government Code and the City’s Investment Policy 

The table below identifies the investment types that are authorized for the City by the California 

Government Code 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 bond trustees 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. 

Authorized *Maximum *Maximum 

Investment types by investment *Maximum percentage Investment 

authorized by state law policy maturity of portfolio in one issuer 

Local agency bonds Yes 5 years None None 

U.S. Treasury obligations Yes 5 years None None 

U.S. agency securities Yes 5 years None 50% 

State of California obligations Yes 5 years None None 

CA Local Agency obligations Yes 5 Years None None 

Banker's acceptances Yes 180 days 10% 10% 

Commercial paper Yes 270 days 15% 10% 

Negotiable certificates of deposit Yes 5 years 30% 10% 

Repurchase agreements Yes 1 year None None 

Reverse repurchase agreements Yes 92 days 

20% of 

base value 

None 

Corporate medium-term notes Yes 5 years 30% None 

Mutual funds Yes N/A 20% 10% 

Money market mutual funds Yes N/A 20% 10% 

Mortgage pass-through securities Yes 5 years 20% None 

Time deposits Yes 5 years None None 

Collateralized certificates of deposit Yes 5 years None None 

County pooled investment funds Yes N/A None None 

Local Agency Investment Fund (LAIF) Yes N/A None None 

JPA pools (other investment pools) Yes N/A None None 

* Based on state law requirements or investment policy requirements, whichever is more restrictive. 

48




Investments Authorized by Debt Agreements 

Investments of debt proceeds held by bond trustees are governed by provisions of the debt agreements, 

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 held by 

bond trustees. The table also identifies certain provisions of these debt agreements that address interest 

rate risk and concentration of credit risk. 

Maximum Maximum 

Authorized Maximum percentage Investment 

investment type maturity allowed in one issuer 

U.S. Treasury obligations None None None 

Federal Housing Administration debentures None None None 

U.S. agency securities None None None 

Time deposits None None None 

Unsecured certificates of deposit 180 days None None 

Banker's acceptances 180 days None None 

State obligations None None None 

Repurchase agreements 1 year None None 

Pre-refunded municipal obligations None None None 

Commercial paper 270 days None None 

Money market mutual funds None None None 

Investment contracts 30 years None None 

Investments Authorized by Actions of the City Council 

Cemetery and Mausoleum Perpetual Care funds are received from cemetery users for the perpetual care 

of cemetery grounds and of the mausoleum. The funds are legally restricted to the extent that only 

earnings, and not principal, can be used for restricted perpetual care purposes. These funds represent 

the accumulation of unspent monies from non-government sources and are not considered by the City to 

constitute “surplus funds” of a local government. Accordingly, these funds are not considered by the 

City to be subject to the provisions of the California Government Code Section 53601 or the City’s 

investment policy. These funds have been invested per instructions of the City Council. The table 

below identifies the investment types generally authorized for these investments. Current City Council 

instructions limit amount invested in equities (common stock) to 60% of the total portfolio with the 

balance to be invested in fixed income securities. The table also identifies certain provisions of these 

debt agreements that address interest rate risk and concentration of credit risk. 

49




Maximum Maximum 

Authorized Maximum percentage Investment 

investment type maturity allowed in one issuer 

U.S. Treasury obligations None None None 

U.S. agency securities None None None 

Common stock None 60% None 

Corporate bonds None None None 

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. The fair value of callable securities is also sensitive to market 

changes in that if interest rates decrease between the time of purchase and the call date, the likelihood 

that a bond will be called and reinvested at a lower interest rate increases. The City’s portfolio also 

includes certain callable structured investments for which the coupon interest rate increases if the 

investments are not called be certain pre-determined dates. The fair value of these investments is also 

sensitive to market changes. 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 and Charnock funds held jointly with another party in an escrow account) to market 

interest rate fluctuations is provided by the following table that shows the distribution of the City’s 

investments by maturity. For purposes of the schedule shown below, any callable securities are assumed 

to be held to maturity. 

Investment type 

Amount 

12 Months 

or Less 

Remaining maturity (in months) 

13 to 24 25 to 60 

Months Months 

More than 

60 Months 

Held by City: 

Federal agency securities $ 442,178,911 128,256,113 118,835,996 195,086,802 — 

Corporate medium term notes 58,274,990 — 12,320,890 45,954,100 — 

State investment pool 78,773,687 78,773,687 — — — 

Money market funds 42,064,361 42,064,361 — — — 

Held by others: 

Treasury notes/ bonds 798,119 131,494 — 192,383 474,242 

Federal agency securities 5,826,363 5,332,850 — 493,513 

Corporate medium term notes 1,410,627 — 507,325 731,266 172,036 

Common stock 3,739,949 3,739,949 — — — 

Money market funds 15,229,433 15,229,433 — — — 

Total $ 648,296,440 273,527,887 131,664,211 241,964,551 1,139,791 

50




Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations 

The City’s investments as of June 30, 2009 (including investments held by bond trustees) do not include 

any 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. 

51





Amount 

Minimum 

legal rating AAA AA+ AA AA- A+ A A- BBB+ Not rated 

Federal agency securities $ 442,178,911 N / A 442,178,911 — — — — — — — — 

Corporate medium term notes 58,274,990 A 51,103,100 — — 2,059,140 — 5,112,750 — — — 

State investment pool 78,773,687 N / A — — — — — — — — 78,773,687 

Money market funds 42,064,361 AAA 42,064,361 — — — — — — — — 

621,291,949 

Held by others: 

Treasury bonds 798,119 N / A 798,119 — — — — — — — — 

Federal agency securities 5,826,363 N / A 5,826,363 — — — — — — — — 

Corporate medium term notes 1,410,627 N / A 419,132 — 74,721 152,807 164,561 223,346 83,394 292,666 — 

Common stock 3,739,949 N / A — — — — — — — — 3,739,949 

Money market funds 15,229,433 AAA 15,229,433 — — — — — — — — 

$ 648,296,440 

557,619,419 — 74,721 2,211,947 164,561 5,336,096 83,394 292,666 82,513,636 

52




The Cemetery and Mausoleum perpetual care funds are funds held in trust by the City to pay for 

perpetual care costs at the City-owned cemetery. Investment of these funds is not covered by the State 

Government Code. The guidelines for investment of these funds are set by the City Council, and the 

funds are managed by an outside investment firm using those guidelines. 

Concentration of Credit Risk 

In regards to limitations on the amount that can be invested in any one issuer, the City’s investment 

policy generally follows stipulations by the California Government Code. However, the City’s policy 

adds an additional stipulation that no more than 50% of the portfolio may be invested in a single issuer. 

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 (excluding investments held by 

others) are as follows: 

Issuer Investment type Reported amount 

% of 

Investment 

FNMA (Fannie Mae) Federal agency securities $ 83,924,946 13.0 % 

Federal Farm Credit Bank Federal agency securities 61,781,590 9.9 

Freddie Mac Federal agency securities 130,453,099 21.0 

Federal Home Loan Bank Federal agency securities 166,019,277 26.7 

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 the 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 City’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 City deposits by pledging first trust deed mortgage notes having a value 

of 150% of the secured public deposits. As of June 30, 2009, City investments in the following 

investment types were held by the same broker-dealer (counterparty) that was used by the City to buy 

the securities: 


Reported amount 

Federal agencies $ 5,332,850 

For investments identified herein as held by bond trustee, the bond trustee, under direction of the 

City/Redevelopment Agency/Parking Authority selects the investment under the terms of the applicable 

trust agreement, acquires the investment, and holds the investment on behalf of the applicable agency. 

53




Investment in State Investment Pool 

Both the City and the Santa Monica Redevelopment Agency (RDA) are voluntary participants 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 both City and RDA investments in 

this pool are reported in the accompanying financial statements at amounts based upon the City’s prorata 

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. 

54




(6) NOTES RECEIVABLE 

Notes receivable related to governmental activities total $80,299,802 as follows: 

Balance at 

June 30, 2008 Increases Decreases 

Balance at 

June 30, 2009 

General Fund 

American Youth Hostel (a) $ 160,000 — 40,000 120,000 

Mountain View Mobile Inn Residents Assoc. (b) 124,977 — — 124,977 

Step Up on Second (c) 1,331,252 — — 1,331,252 

Employee housing (d) 1,300,000 — — 1,300,000 

Total General Fund 2,916,229 — 40,000 2,876,229 

Special Revenue Source Fund 

Community Corporation of Santa Monica (e) 6,774,763 — — 6,774,763 

Community Corporation of Santa Monica (f) 3,350,000 — — 3,350,000 

Community Corporation of Santa Monica (g) — 2,503,129 2,503,129 

Total Special Revenue Source Fund 10,124,763 2,503,129 — 12,627,892 

Downtown Redevelopment Fund 

Community Corporation of Santa Monica (h) 1,244,000 — — 1,244,000 

Community Corporation of Santa Monica (i) 679,000 — — 679,000 

Total Downtown Redevelopment Fund 1,923,000 — — 1,923,000 

Earthquake Recovery Redevelopment Fund 

Community Corporation of Santa Monica (j) 318,307 — — 318,307 

Community Corporation of Santa Monica (k) 398,362 — — 398,362 

Total Earthquake Recovery Redevelopment 716,669 — — 716,669 

Non-major Governmental Funds 

Community Corporation of Santa Monica (l) 681,952 — 872 681,080 

Community Corporation of Santa Monica (m) 2,900,000 — — 2,900,000 

Habitat for Humanity - Los Angeles (n) 575,000 — 575,000 — 

Community Corporation of Santa Monica (o) 5,537,693 — — 5,537,693 

Low- and moderate-income housing (DRPLP) (p) 200,000 — — 200,000 

Low- and moderate-income housing (DRPLP) (p) 200,000 — — 200,000 

Low- and moderate-income housing (q) 1,301,685 — 39,500 1,262,185 

Low- and moderate-income housing (r) 1,200,000 — — 1,200,000 

Low- and moderate-income housing (s) 6,745,807 — 400,000 6,345,807 

Low- and moderate-income housing (t) 924,478 31,917 — 956,395 

Low- and moderate-income housing (u) 7,170,000 — — 7,170,000 

Community Corporation of Santa Monica (v) 3,157,144 — — 3,157,144 

Low- and moderate-income housing (w) 841,600 — — 841,600 

Low- and moderate-income housing (x) 2,733,631 2,388,587 — 5,122,218 

Low- and moderate-income housing (y) — 2,044,914 — 2,044,914 

Community Corporation of Santa Monica (z) — 5,226,343 — 5,226,343 

Community Corporation of Santa Monica (aa) — 3,665,855 — 3,665,855 

Low income senior housing (bb) — 3,120,000 — 3,120,000 

MERL Program (cc) 12,807,083 — 328,555 12,478,528 

Low income senior housing (dd) 46,250 — — 46,250 

Total non-major governmental funds 47,022,323 16,477,616 1,343,927 62,156,012 

Total notes receivable $ 62,702,984 18,980,745 1,383,927 80,299,802 

55




General Fund 

a. On April 12, 1990, the City loaned $500,000 from the General Fund, interest free, to American 

Youth Hostel, Inc. to assist in financing construction of a 200-bed international youth hostel facility. 

The fourteenth of seventeen installment loan payments was received in 2009; the remaining 

principal balance as of June 30, 2009 is $120,000. 

b. A promissory note in the amount of $290,000, interest free, has been executed with Mountain View 

Mobile Inn Residents Association for pre-development loan funds to assist in the acquisition and 

subsequent conversion of the mobile home park located at 1930 Stewart Street to tenant ownership. 

As of June 30, 2009, $124,977 had been disbursed to the borrower. 

c. A promissory note in the amount of $1,331,252 was executed with Step Up on Second, L.P., a 

California limited partnership, for the construction of a thirty-six bed permanent housing project for 

mentally disabled low-income persons. The project is located at 1328 Second Street in Santa 

Monica. The original promissory note dated September 16, 1993 was amended, superseded and 

replaced in full by a promissory note dated September 9, 1996, the unpaid balance is due not later 

than September 16, 2043, and may be extended for a period of up to 25 years. Interest has been 

forgiven and the principal balance as of June 30, 2009 is $1,331,252. 

d. On April 12, 2006, the City made a housing loan to P. Lamont Ewell, City Manager, in the amount 

of $1,300,000 for the purchase of a home within the City limits. The loan is secured by a deed of 

trust and has a term of 30 years with an interest rate of 4.7%, subject to annual adjustments as set 

forth in the note, not to exceed 4.855%. The outstanding principal, together with any outstanding 

interest, is due and payable in full on or before the 30-year anniversary date of the loan. Monthly 

interest payments are due on the first calendar day of each month. The City Manager must repay 

any outstanding balance of the loan within two years of ending employment with the City. As of 

June 30, 2009, the total outstanding balance of the loan was $1,300,000. 

Special Revenue Source Special Revenue Fund 

e. A revised promissory note in the amount of $6,774,763 was executed with Pacific Court Limited 

Partnership, c/o Community Corporation of Santa Monica, for an affordable housing project located 

at 2209 Main Street. Forty-three low- and moderate-income housing units are to be constructed on 

the site. This is a 55-year loan with 1% interest rate per annum. Payments are to be made from 

residual receipts. As of June 30, 2009, $6,774,763 had been disbursed to the borrower. 

f. A revised promissory note in the amount of $3,350,000 was executed with 1424 Broadway 

Apartments Limited Partnership, c/o Community Corporation of Santa Monica, for an affordable 

housing project located at 1424 Broadway/1512 15th Street. This is a 55-year loan with 3% interest 

rate per annum. Payments are to be made from residual receipts. As of June 30, 2009, $3,350,000 

had been disbursed to the borrower. 

g. A promissory note in the amount of $2,503,129, interest free, was executed with Community 

Corporation of Santa Monica for the acquisition and predevelopment expenses for an affordable 

housing project located at 430-508 Pico Blvd. This is a 0% loan with the principal amount due and 

payable after a two-year deferral period. As of June 30, 2009, $2,503,129 had been disbursed to 

the borrower. 

56




Downtown Redevelopment Fund 

h. Promissory notes in the amount of $4,458,033, $1,691,967 and $950,000 for a total of $7,100,000 

were executed with 26 th and Santa Monica Family Housing Limited Partnership, c/o Community 

Corporation of Santa Monica, for an affordable housing project located at 1349 26 th Street. Fortyfour 

low- and moderate-incoming housing units are to be constructed on the site. They are 55-year 

loans with 3% interest rate per annum. Payments are to be made from residual receipts. As of 

June 30, 2009, $1,244,000 had been disbursed to the borrower. 

i. A promissory note in the amount of $4,234,507 was executed with The Tahiti, L.P. c/o Community 

Corporation of Santa Monica for an affordable housing project located at 2411-2423 Centinela 

Avenue. The loan is for the construction of 36 affordable rental housing units. This is a 55-year 

loan with a simple interest rate of 3% per annum. Payments are to be made from residual receipts. 


Earthquake Recovery Redevelopment Fund 

j. Promissory notes in the amount of $4,458,033, $1,691,967 and $950,000 for a total of $7,100,000 



low- and moderate-income housing units are to be constructed on the site. They are 55-year 

loans with 3% interest rate per annum. Payments are to be made from residual receipts. As of June 

30, 2009, $318,307 had been disbursed to the borrower. 

k. A promissory note in the amount of $4,234,507 was executed with The Tahiti, L.P. c/o Community 





Non-major Governmental Funds 

l. On April 17, 2000, the City executed a promissory note with Community Corporation of Santa 

Monica for the construction of a twenty unit, large family, affordable housing complex located at 

708 Pico Blvd. $579,000 is funded from the City’s Pico Neighborhood Trust Fund, while $221,000 

is funded from the City-wide CDBG Fund. This note is a 0% loan to be repaid from residual 

receipts of the project and is due on October 22, 2053. As of June 30, 2009, the outstanding balance 

is $681,080. 

m. A revised promissory note in the amount of $2,900,000 was executed with 1424 Broadway 

Apartments Limited Partnership, c/o Community Corporation of Santa Monica, for an affordable 

housing project located at 1424 Broadway/1512 15th Street. This is a 55-year loan with 3% interest 

rate per annum. Payments are to be made from residual receipts. As of June 30, 2009, $2,900,000 

had been disbursed to the borrower. 

n. A promissory note in the amount of $575,000 was executed with Habitat for Humanity – Los 

Angeles for an affordable housing project located at 2018 Nineteenth Street. This loan was for the 

acquisition of a vacant parcel of land where Habitat would build up to six new ownership units that 

would be sold to very low income buyers. This was a 0% loan with the principal amount due and 

57




payable after a two-year deferral period. In June 2009, Habitat for Humanity conveyed the land to 

the Redevelopment Agency in exchange for cancellation of the loan, its associated contracts and 

obligations. 

o. Promissory notes in the amount of $4,458,033, $1,691,967 and $950,000 for a total of $7,100,000 



low- and moderate-income housing units are to be constructed on the site. They are 55-year 

loans with 3% interest rate per annum. Payments are to be made from residual receipts. As of June 

30, 2009, $3,845,726 and $1,691,967 respectively, had been disbursed to the borrower. 

p. Two promissory notes, for $200,000 each, were executed with the owners of certain rental 

properties. The notes were for five years at 3% interest per year, and could be renewed for five 

additional five-year terms as long as the rental properties are maintained for low-and moderateincome 

households. The first note was due December 22, 1993, and has been extended for the third 

time to December 22, 2008 under the same terms and conditions; the second note was due 

December 29, 1994, and has been extended to December 29, 2019 under the same terms and 

conditions. The promissory notes are payable in full upon sale or transfer of the property (whichever 

occurs first) or upon expiration of the term of the promissory notes. Upon payment to the City, 

proceeds must be paid to the State of California as repayment for two $200,000 State Department of 

Housing and Urban Development Deferred Payment Rehabilitation Loan Program (DPRLP) loans. 

There were no changes in the loan balances during the year ended June 30, 2009. 

q. These represent non-interest bearing, limited appreciation and shared appreciation loans made 

pursuant to TORCA Program guidelines to assist low- and moderate-income households purchase 

their rental units. As of June 30, 2009, the outstanding balances of such loans total $1,262,185. 

r. A promissory note in the amount of $1,200,000 was executed with Ocean Park Community Center 

for congregate housing and emergency shelter for very low-income use, located at 1751 Cloverfield 

Blvd. This loan is for the acquisition and rehabilitation of the site. This is a 55-year loan with 

5.98% interest rate per annum with a two-year deferral period. Payments are to be made from 

residual receipts. As of June 30, 2009, $1,200,000 had been disbursed to the borrower. 

s. A revised promissory note in the amount of $6,745,807 was executed with Community Corporation 

of Santa Monica for an affordable housing project located at 3021-3031 Santa Monica Blvd. This 

loan is for the acquisition, predevelopment expenses and construction of future low- and moderateincome 

housing. This is a 0% loan with the principal amount due and payable after a two-year 

deferral period. As of June 30, 2009, $6,345,807 had been disbursed to the borrower. 

t. A promissory note in the amount of $1,161,185 was executed with Community Corporation of 

Santa Monica for an affordable housing project located at 1342 Berkeley Street. This loan is for the 

acquisition and predevelopment expenses for future low- and moderate-income housing. This is a 

0% loan with the principal amount due and payable after a two-year deferral period. As of June 30, 

2009, $956,395 had been disbursed to the borrower. 

u. Two promissory notes, one in the amount of $5,870,000 and one for $1,300,000 were executed with 

Step up on Fifth, L.P. for an affordable housing project located at 1548 Fifth Street. These loans are 

for the acquisition and construction of the site. This is a 55-year loan with a simple interest rate of 

58




4% per annum. Payments are to be made from residual receipts. As of June 30, 2009, $5,870,000 

and $1,300,000 respectively, had been disbursed to the borrower. 

v. A promissory note in the amount of $4,234,507 was executed with The Tahiti, L.P. c/o Community 




As of June 30, 2009, $3,157,144 had been disbursed to the borrower. 

w. A promissory note in the amount of $841,600 was executed with Community Corporation of Santa 

Monica for low- and moderate-income housing at 2020-2030 Cloverfield Blvd. This is a 35-year 

loan with 10.44% interest rate per annum. As of June 30, 2009, $841,600 had been disbursed to the 

borrower. 

x. A promissory note in the amount of $5,207,314 was executed with the Santa Monica Housing 

Partners, L.P for the development of twenty units of affordable senior housing at 1458 14 th Street. 

The loan represents land acquisition financing that achieves site control. The interest rate is 0%. 

Repayment is deferred during the two year term of the agreement with an option to extend the 

agreement for eighteen months. As of June 30, 2009, the outstanding balance is $5,122,218. 

y. A promissory note in the amount of $6,223,333 was executed with Community Corporation of 

Santa Monica for an affordable housing project located at 430-508 Pico Blvd. This is a 0% loan 

with the principal amount due and payable after a two-year deferral period. As of June 30, 2009, 

$2,044,914 had been disbursed to the borrower. 

z. A promissory note in the amount of $6,582,323 was executed with Community Corporation of 

Santa Monica for an affordable housing project located at 2602 Broadway. This is a 0% loan with 

the principal amount due and payable after a two-year deferral period. As of June 30, 2009, 


aa. A promissory note in the amount of $5,595,897 was executed with Community Corporation of 

Santa Monica for an affordable housing project located at 2802 Pico Blvd. This is a 0% loan with 

the principal amount due and payable after a two-year deferral period. As of June 30, 2009, 


bb. A promissory note in the amount of $4,424,711 was executed with FAME Santa Monica Senior 

Apartments, L.P., for an affordable housing project located at 1754 19 th Street. This is a 0% loan 

with the principal amount due and payable after a two-year deferral period. As of June 30, 2009, 


cc. The January 17, 1994 Northridge Earthquake resulted in damaged multifamily residences in the 

City of Santa Monica. To facilitate repair of damaged multifamily residences, the U.S Department 

of Housing and Urban Development awarded the City of Santa Monica a total of $33,388,000 in 

emergency funds to finance the City's Multifamily Earthquake Repair Loan (MERL) Program. 

The funds were allocated as follows: $2,027,000 – HOME Program Emergency Supplemental Fund, 

$6,361,000 – HOME Program Presidential Contingency Fund, and $25,000,000 – CDBG Program 

Emergency Supplemental Fund. 

59




As of June 30, 2009, the following summarizes the total loan amount authorized, amount disbursed 

since inception of the loan program, the amounts repaid by the borrowers, and the loan balances: 

Loan amount Loan amount Amounts Loan balance at 

Fund authorized disbursed repaid/forgiven June 30, 2009 

Miscellaneous Grants $ 7,790,695 7,790,695 2,743,141 5,047,554 

CDBG 21,739,088 21,727,929 14,296,955 7,430,974 

Total $ 29,529,783 29,518,624 17,040,096 12,478,528 

dd. The Redevelopment Housing Trust Fund, formerly known as “CHARP” provides funds to eligible 

borrowers in the form of deferred payment loans to make up the financial gap between available 

non-program resources, including the borrower’s equity and private financing, and the limited 

equity cooperatives. As of June 30, 2009, loans totaling $46,250 are outstanding. 

60




(7) CAPITAL ASSETS 

Capital assets activity for the primary government for year ended June 30, 2009 is as follows: 

Balance at 

July 1, 2008 Increases Decreases Transfers 

Balance at 

June 30, 2009 


Capital assets, not being depreciated: 

Land $ 145,240,508 4,500,085 — 1,203,000 150,943,593 

Land held under easement 72,237,823 — — — 72,237,823 

Construction in progress 43,306,737 25,735,656 (5,326,775) (49,354,718) 14,360,900 

Total capital assets, not being depreciated 260,785,068 30,235,741 (5,326,775) (48,151,718) 237,542,316 

Capital assets, being depreciated: 

Buildings 253,854,273 8,261,531 (16,971,823) 41,916,596 287,060,577 

Improvements other than buildings 77,194,062 7,632 (1,133,400) — 76,068,294 

Utility systems 5,198,568 119,345 — — 5,317,913 

Machinery and equipment 33,041,280 1,272,577 (2,980,489) 92,170 31,425,538 

Infrastructure 324,776,828 3,881,057 (392,336) 337,000 328,602,549 

Total capital assets being depreciated 694,065,011 13,542,142 (21,478,048) 42,345,766 728,474,871 

Less accumulated depreciation for: 

Buildings (43,231,299) (6,974,524) 7,360,629 — (42,845,194) 

Improvements other than buildings (37,716,434) (2,835,307) 725,477 65,530 (39,760,734) 

Utility systems (203,316) (122,896) — — (326,212) 

Machinery and equipment (21,557,461) (2,608,183) 2,000,338 16,563 (22,148,743) 

Infrastructure (127,196,957) (10,264,044) 276,089 (82,093) (137,267,005) 

Total accumulated depreciation (229,905,467) (22,804,954) 10,362,533 — (242,347,888) 

Total capital assets, being depreciated, net 464,159,544 (9,262,812) (11,115,515) 42,345,766 486,126,983 

Subtotal governmental activities 724,944,612 20,972,929 (16,442,290) (5,805,952) 723,669,299 

Business-type activities: 

Capital assets, not being depreciated: 

Land 72,634,413 — — (203,000) 72,431,413 

Construction in progress 42,884,961 37,341,157 (204,300) (7,677,400) 72,344,418 

Total capital assets, not being depreciated 115,519,374 37,341,157 (204,300) (7,880,400) 144,775,831 

Capital assets, being depreciated: 

Buildings 67,940,845 86,636 (832,234) 2,146,046 69,341,293 

Improvements other than buildings 23,221,260 1,182,368 (1,436,714) — 22,966,914 

Machinery and equipment 126,431,755 9,135,019 (5,849,284) 234,057 129,951,547 

Infrastructure 264,599,015 3,083,909 — 11,306,249 278,989,173 

Total capital assets being depreciated 482,192,875 13,487,932 (8,118,232) 13,686,352 501,248,927 

Less accumulated depreciation for: 

Buildings (28,423,100) (2,709,914) 727,218 — (30,405,796) 

Improvements other than buildings (16,644,693) (649,334) 293,711 — (17,000,316) 

Machinery and equipment (79,675,519) (18,189,046) 6,869,012 — (90,995,553) 

Infrastructure (55,954,112) (7,405,451) — — (63,359,563) 

Total accumulated depreciation (180,697,424) (28,953,745) 7,889,941 — (201,761,228) 

Total capital assets, being depreciated, net 301,495,451 (15,465,813) (228,291) 13,686,352 299,487,699 

Subtotal business-type activities 417,014,825 21,875,344 (432,591) 5,805,952 444,263,530 

Total $ 1,141,959,437 42,848,273 (16,874,881) — 1,167,932,829 

61




Depreciation expense was charged to functions/programs of the primary government as follows: 

General government $ 1,161,275 

Public safety 2,732,590 

General services 12,931,074 

Cultural and recreation services 3,114,394 

Library 1,321,172 

Housing and community development 1,292,345 

Capital assets held by the government's internal service funds are 

charged to the various functions based on their assets usage 252,104 

Total depreciation expense - governmental activities $ 22,804,954 


Water $ 1,097,832 

Solid waste management 9,429 

Pier 319,873 

Wastewater 6,130,488 

Civic auditorium 331,295 

Airport 677,508 

Stormwater management 301,816 

Cemetery 122,581 

Big Blue Bus 17,351,484 

Special aviation 28,904 

Parking authority 22,022 

Capital assets held by the government's internal service funds are 

charged to the various programs based on their assets usage 2,560,513 

Total depreciation expense - business-type activities $ 28,953,745 

Note that depreciation expense does not equal amounts shown on enterprise fund statements 

because internal service fund amounts relating to business-type activities are included in 

functions/programs. 

The City’s infrastructure assets are recorded at historical cost in the government-wide statements 

as required by GASB 34. 

(8) UNEARNED REVENUE 

Governmental funds report unearned revenue in connection with receivables for revenues that are not 

considered to be available to liquidate liabilities of the current period. Governmental and enterprise 

funds also defer revenue recognition in connection with resources that have been received as of yearend, 

but not yet earned. 

62




GASB 49 requires the City to recognize remediation liabilities and expenditures once estimable. 

$85,481,000 of the MTBE settlement is deferred on the fund financials but is recognized on the 

government-wide financial statement because it has been received and will fully fund the remediation. 

The interest on advances reported in the General Fund and the nonmajor governmental funds represent 

interfund activity eliminated in the government-wide financial statements. This interest is earned and 

included in promissory note balances at year-end. Revenues related to receivables of $636,312 in the 

Miscellaneous Grants Fund and $36,990 in the Community Development Block Grant (CDBG) Fund 

are deferred in the fund financial statements because they were not available to liquidate liabilities of the 

current period. However, these amounts are recognized for government-wide financial statement 

purposes because all requirements for revenue recognition have been met. 

The components of unearned revenue are as follows: 

Fund financial 

statements 

Eliminate 

interfund 

activity 

Recognized in 

governmentwide 

financials 

Governmentwide 

financial 

statements 

Governmental funds: 

General Fund: 

Interest on advances $ 15,122,399 (15,122,399) — — 

Unearned user fees 504,347 — — 504,347 

Rental advances 101,206 — — 101,206 

Total General Fund 15,727,952 (15,122,399) — 605,553 

Special Revenue Source Fund: 

Settlement proceeds 94,191,645 — (85,481,000) 8,710,645 

Nonmajor governmental funds: 

Other receivables (1) 7,286,543 — (673,302) 6,613,241 

Admin fees 12,650 — — 12,650 

Interest on advances 5,060,402 (5,060,402) — — 

Total nonmajor governmental funds: 12,359,595 (5,060,402) (673,302) 6,625,891 

Total governmental funds 122,279,192 (20,182,801) (86,154,302) 15,942,089 

Enterprise funds: 

Wastewater Fund: 


Big Blue Bus Fund: 

Bus tokens/Metrocard 14,667 — — 14,667 

LACMTA funds received prior to 

meeting all eligibility requirements 1,518,363 — — 1,518,363 

Total Big Blue Bus Fund 1,533,030 — — 1,533,030 

Pier Fund: 


Total enterprise funds 1,812,279 — — 1,812,279 

Total unearned revenue $ 124,091,471 (20,182,801) (86,154,302) 17,754,368 

(1) Represents grants receivable for which all of the eligibility requirements have not been met. 

63




(9) LONG-TERM LIABILITIES 

Changes in long-term liabilities: 

Long-term liability activity for the year ended June 30, 2009, was as follows: 

Balance at 

July 1, 2008 Additions Reductions 

Balance at 

June 30, 2009 

Due within 

one year 

Due beyond one 

year 

Governmental Activities: 

Loans payable (1) $ 400,000 

— — 400,000 — 400,000 

Line of credit — 15,485,324 — 15,485,324 — 15,485,324 

Revenue bonds 71,900,000 — 4,020,000 67,880,000 3,020,000 64,860,000 

Tax allocation bonds 75,570,000 — 2,670,000 72,900,000 2,800,000 70,100,000 

General obligation bonds 20,140,000 — 1,685,000 18,455,000 1,710,000 16,745,000 

Less deferred amounts: 

For issuance discounts (214,483) — (12,485) (201,998) — (201,998) 

For issuance premiums 268,476 — 20,366 248,110 — 248,110 

Deferred loss on refunding (3,791,611) — (201,951) (3,589,660) — (3,589,660) 

Total loans and bonds 

payable 164,272,382 15,485,324 8,180,930 171,576,776 7,530,000 164,046,776 

Compensated absences (2) 9,594,544 5,299,527 4,793,958 10,100,113 5,073,777 5,026,336 

Claims payable 25,116,413 9,124,787 8,293,919 25,947,281 7,013,023 18,934,258 

Subtotal governmental 

activities 198,983,339 29,909,638 21,268,807 207,624,170 19,616,800 188,007,370 


Loans payable 3,363,238 — 259,830 3,103,408 266,008 2,837,400 

Revenue bonds 27,260,000 — 1,500,000 25,760,000 1,545,000 24,215,000 

Less deferred amounts: 

For issuance discounts (108,826) — (8,013) (100,813) — (100,813) 

For issuance premiums 210,453 — 19,278 191,175 — 191,175 

Loss on refunding (2,650,333) — (231,673) (2,418,660) — (2,418,660) 

Total loans and bonds 

payable 28,074,532 — 1,539,422 26,535,110 1,811,008 24,724,102 

Compensated absences 2,513,834 2,055,935 1,656,962 2,912,807 1,909,237 1,003,570 

Claims payable 1,940,638 2,344,914 1,379,129 2,906,423 1,938,009 968,414 

Subtotal business-type 

activities 32,529,004 4,400,849 4,575,513 32,354,340 5,658,254 26,696,086 

Total $ 231,512,343 34,310,487 25,844,320 239,978,510 25,275,054 214,703,456 

(1) Previously reported as short term loans payable. 

(2) Compensated absences are predominately liquidated by General Fund resources. 

64




A summary of long-term bonds and loans outstanding at year end is as follows: 

As Forathe result year of Council ended June Resolution 30, 2001, 9675, the theCity’s following annual changes pension Final have costbeen and subjected its actual 

Date of issue 

Original issue 

maturity 

date 

Interest 

rate 

Balance at 

June 30, 2009 


Revenue bonds (1): 

Parking Authority 2002 May 1, 2002 10,480,000 July 1, 2016 3.50-4.50% $ 7,520,000 

Public Finance Authority 1999 Sept 15, 1999 13,200,000 July 1, 2021 4.25-5.50% 9,940,000 

Public Finance Authority 2002 Jan 1, 2002 17,310,000 July 1, 2021 2.00-4.75% 13,125,000 

Public Finance Authority 2004 Dec 1, 2004 38,930,000 July 1, 2034 3.35-5.00% 37,295,000 

Subtotal revenue bonds - 


Tax allocation bonds (2): 

Ocean Park Redevelopment 2002 May 1, 2002 19,315,000 July 1, 2018 3.75-5.00% 13,550,000 

Earthquake Recovery Project 2006 April 1, 2006 64,720,000 July 1, 2030 4.00-5.50% 59,350,000 

Subtotal tax allocation bonds - 


General obligation bonds (1): 

Main Library Improvements 1998 June 25, 1998 3,060,000 July 1, 2010 4.00-4.30% 955,000 

Main Library Improvements 2002 Aug 27, 2002 25,000,000 July 1, 2022 2.00-4.60% 17,500,000 

Subtotal general obligation 

bonds - governmental 

activities 18,455,000 

Loans (3): 

State Dept. of Housing and 

Community Development loan Dec 22, 1988 200,000 Dec 22, 2013 0.00% 200,000 

State Dept. of Housing and 

Community Development loan Dec 29, 1989 200,000 Dec 29, 2019 0.00% 200,000 

Subtotal loans payable 400,000 

Line of credit (2): 

Bank of America May 1, 2008 15,485,324 July 1, 2013 LIBOR plus 1.25% 15,485,324 

Subtotal governmental activities 

175,120,324 

Business-type activities (4): 

Revenue bonds: 

Hyperion Project Revenue 1993 Dec 22, 1993 38,620,000 Jan 1, 2022 4.50-4.25% 9,670,000 

Hyperion Project Revenue 2005 Oct 1, 2005 20,305,000 Jan 1, 2018 3.00-5.00% 16,090,000 

Subtotal revenue bonds - 

business-type activities 25,760,000 

Loans: 

State Dept. of Transportation loans various 1,305,444 July 1, 2010 6.50-7.40% 44,436 

State Water Resources Control 

Board loan Jan 29, 1999 5,000,000 July 1, 2019 2.60% 3,058,972 

Subtotal loans payable 3,103,408 

For the year ended June 30, 2001, the City’s annual pension cost and its actual 

Subtotal business-type activities 28,863,408 

Total $ 203,983,732 

(1) For construction of City facilities. 

(2) For purchase/construction of affordable housing. 

(3) To fund two promissory notes receivable from the owners of certain rental properties. 

(4) To fund capital contribution towards wastewater treatment facility. 

Management believes it is in compliance with all debt covenants. 

65




Annual debt service requirements to maturity are as follows: 

Governmental activities 

Fiscal year 

ended 

Revenue bonds Tax allocation bonds General obligation bonds 

Loans payable and lines of 

credit 

Total 

June 30, Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 

66 

2010 $ 3,020,000 3,024,217 2,800,000 3,324,310 1,710,000 737,194 — — 7,530,000 7,085,721 

2011 3,160,000 2,890,476 2,940,000 3,179,601 1,745,000 664,548 — — 7,845,000 6,734,625 

2012 3,295,000 2,756,030 3,095,000 3,025,314 1,250,000 610,937 — — 7,640,000 6,392,281 

2013 3,430,000 2,620,317 3,255,000 2,861,066 1,250,000 564,062 15,685,324 — 23,620,324 6,045,445 

2014 3,570,000 2,476,888 3,425,000 2,687,815 1,250,000 515,312 — — 8,245,000 5,680,015 

2015-2019 18,000,000 9,960,688 19,660,000 9,106,089 6,250,000 1,811,093 — — 43,910,000 20,877,870 

2020-2024 13,635,000 6,114,643 14,915,000 7,641,594 5,000,000 457,500 200,000 — 33,750,000 14,213,737 

2025-2029 8,720,000 3,830,282 18,560,000 4,080,590 — — — — 27,280,000 7,910,872 

2030-2034 11,050,000 1,435,000 4,250,000 396,094 — — — — 15,300,000 1,831,094 

$ 67,880,000 35,108,541 72,900,000 36,302,473 18,455,000 5,360,646 15,885,324 — 175,120,324 76,771,660 

Business-type activities 

Fiscal year 

ended 

Revenue bonds 

Loans payable 

Total 

June 30, Principal Interest Principal Interest Principal Interest 

2010 $ 1,545,000 1,026,813 266,008 82,517 1,811,008 1,109,330 

2011 1,600,000 972,738 272,347 74,686 1,872,347 1,047,424 

2012 1,650,000 924,738 256,632 66,691 1,906,632 991,429 

2013 1,700,000 873,175 263,305 60,019 1,963,305 933,194 

2014 1,785,000 788,175 270,151 53,173 2,055,151 841,348 

2014-2018 10,065,000 2,899,201 1,459,836 156,782 11,524,836 3,055,983 

2019-2023 7,415,000 645,326 315,129 8,193 7,730,129 653,519 

$ 25,760,000 8,130,166 3,103,408 502,061 28,863,408 8,632,227




Pledged Revenue 

The City has a number of debt issues that involve the pledging of revenues. The amounts and terms of 

the remainder of these commitments and the purposes for which the proceeds of the debt issuances are 

utilized are indicated in the summery of long-term bonds and loans outstanding at year end presented in 

this note. For the current year, debt service payments as a percentage of the pledged gross revenue (net 

of certain expenses where so specified in debt covenants) are indicated in the table below. These 

percentages also approximate the relationship of debt service to pledged revenue for the remainder of 

the term of the commitment. 

Annual amount of 

pledged revenue (net 

of expenses, where 

required) 

Annual debt service 

payments (of all debt 

secured by this 

revenue) 

Debt service as a 

percentage of 

pledged revenue 

Description of pledged revenue/debt: 

Base rental payments 

Parking Authority 2002 $ 1,076,923 1,108,399 103% 

Public Finance Authority 1999, 2002 2,413,333 2,413,333 100% 

Public Finance Authority 2004 2,548,187 2,529,463 99% 

Total Base Rental Payments 6,038,443 6,051,195 

Tax increment 

Ocean Park Redevelopment 2002 3,953,132 1,725,998 44% 

Earthquake Recovery Project 2006 65,674,456 4,403,981 7% 

Line of credit (1) 13,250,221 - - 

Total Tax Increment 82,877,809 6,129,979 

Library bond tax revenue 

Main Library Improvements 1998, 2002 2,501,448 2,490,202 100% 

Wastewater charges for services 

Hyperion Project Revenue 1993, 2005 7,673,017 2,571,812 34% 

Total $ 99,090,717 17,243,188 

(1) Subordinates to the Earthquake Recovery Project 2006 bonds. 

(10) FUND DEFICITS 

Capital Projects Fund. A deficit fund balance in the amount of $15,344,514 exists in the Downtown 

Redevelopment Project Fund. This fund balance deficit is primarily due to interest expense on advances 

from the General Fund. Management plans to use future tax increment revenues to pay off the advances 

and eliminate this fund deficit. 

Enterprise Funds. A net deficit in the amount of $2,407,678 exists in the Cemetery Fund due to 

expenditures outpacing increased revenue. The deficit is expected to be funded by increased operating 

revenues and improved operating efficiency. Cemetery is currently implementing a business plan which 

anticipates increased future revenues. 

67




A net deficit in the amount of $319,048 exists in the Airport Fund due to reductions in revenue and 

increased expenses compared to previous years. The deficit is expected to be funded by increased future 

fees. 

Internal Service Fund. A fund deficit balance in the amount of $914,648 exists in the Self-Insurance 

Bus Fund due to an increase in claims expense. The deficit is expected to be funded by increased 

contributions. 

(11) INTERFUND TRANSACTIONS 

The following tables summarize the due to/from other funds, inter-fund advances to/from, and transfers 

in/out at June 30, 2009. 

Due to/from 

Due to/from other funds at June 30, 2009 are as follows: 

Due from 

Due to 

(receivable fund) (payable fund) Amount 

General Fund Non-major enterprise funds $ 1,376,554 

Total due to/from $ 1,376,554 

Due to/from other funds are short term loans made to eliminate negative cash balances at year end. The 

balances are expected to be repaid within one year. 

Advances to/from 

Advances to/from other funds at June 30, 2009 are as follows: 

Advances to 

Advances from 

(receivable fund) (payable fund) Amount 

General Fund Downtown Redevelopment Project Fund $ 19,969,705 

Non-major governmental funds 3,842,973 

Non-major enterprise funds 12,596,985 

Total General Fund 36,409,663 

Non-major governmental funds Earthquake Redevelopment Fund 3,465,452 

Non-major governmental funds Non-major governmental funds 6,584,506 

Wastewater Fund Non-major enterprise funds 88,875 

Total advances to/from $ 46,548,496 

Advances represent loans made to provide financing resources for capital projects. These amounts are 

expected to be repaid in future years, subject to the various loan terms. None of the above balances are 

expected to be repaid within one year. 

68




Transfers 

Transfers to/from other funds at June 30, 2009 are as follows: 

Transfer in 

(receivable fund) 

Transfer out 

(payable fund) 

Amount 

General Fund Special Revenue Source Fund $ 56,703,058 (1) 

Downtown Redevelopment Fund 343,624 (2) 

Earthquake Redevelopment Fund 2,273,124 (3) 

Non-major governmental funds 5,919,459 (4) 

Big Blue Bus Fund 387,300 (5) 

Wastewater Fund 833,700 (6) 

Non-major enterprise funds 5,616,315 (7) 

Total General Fund 72,076,580 

Non-major governmental funds General Fund 12,749,899 (8) 


Non-major governmental funds 2,931,119 (9) 

Total non-major governmental funds 19,255,724 

Wastewater Fund Non-major enterprise funds 1,228,351 (10) 

Government-wide statements - 

governmental activities 6,008,953 (11) 

Total Wastewater Fund 7,237,304 

Big Blue Bus Fund Non-major governmental funds 538,597 (12) 

Total Big Blue Bus Fund 538,597 

Non-major enterprise funds General Fund 2,385,828 (13) 


Special Revenue Source Fund 236,993 (15) 

Non-major enterprise funds 1,644,729 (16) 

Non-major governmental funds 307,083 (17) 

Total non-major enterprise funds 8,244,511 

Internal service funds Internal service funds 691,800 (18) 

Total internal service funds 691,800 

Total transfers $ 108,044,516 

Government-wide statements - 

governmental activities Non-major enterprise funds $ 203,000 (19) 

Total transfers $ 203,000 

(1) Transfer of discretionary MTBE settlement monies and to subsidize housing, homeless programs and 

transportation management project expenditures. 

(2) Transfer to subsidize downtown redevelopment project expenditures. 

(3) Transfer to subsidize earthquake recovery redevelopment expenditures. 

(4) Transfer to subsidize housing, streets and roads, senior nutrition, library, transportation management and 

various operating expenditures. 

(5) Transfer to subsidize transit officers' salaries and transit mall maintenance. 

69




(6) Transfer to subsidize environmental programs expenditures. 

(7) Transfer to subsidize environmental programs, parking and traffic expenditures. 

(8) Transfer for the payment of debt service. 

(9) Transfer for the payment of debt service and to subsidize housing program expenditures. 

(10) Transfer to subsidize environmental programs, stormwater and treatment facility expenses. 

(11) Transfer of capital assets from the Disaster Relief Fund to the Wastewater Fund. 

(12) Transfer to subsidize transportation related expenses. 

(13) Transfer to subsidize pier, airport and civic auditorium expenses. 

(14) Transfer to subsidize economic development expenditures and debt service payments. 

(15) Transfer to subsidize water and environmental remediation expenses. 

(16) Transfer to subsidize pier infrastructure improvement and stormwater management expenses. 

(17) Transfer to subsidize cemetery management expenses. 

(18) Transfer to subsidize Workers’ Compensation Self-Insurance Fund staff time. 

(19) Transfer of capital assets from the Parking Authority Fund to the Earthquake RDA Fund. 

(12) RESTRICTED NET ASSETS 

Restricted net assets are net assets whose use is subject to constraints externally imposed. The 

following categories of net assets are restricted as to use by agreements with creditors, developers, 

grantors, or laws or regulations of other governments: debt service, Clean Beaches and Ocean Parcel 

Tax, Housing Authority, Community Development Block Grant, Citizens Option for Public Safety, Air 

Quality Management District, development projects, Asset Seizure, streets projects, low- and moderateincome 

housing, MTBE settlement, perpetual care, miscellaneous medical coverage and construction of 

rail system. The remaining categories of funds, Tenant Ownership Rights Charter Amendment and Rent 

Control, are restricted as to use by law. 

70




Net assets for governmental activities at June 30, 2009, are restricted as follows: 

Housing Authority $ 2,744,519 

Tenant Ownership Rights Charter Amendment 16,095,044 

Community Development Block Grant 12,770,280 

Citizens Option for Public Safety 248,704 

Rent Control 1,843,594 

Air Quality Management District 261,849 

Asset Seizure 498,740 

Streets projects 769,104 

Low- and moderate-income housing 45,391,752 

Total housing and community development 80,623,586 

Clean Beaches and Ocean Parcel Tax 3,883,155 

Miscellaneous grants 21,024,279 

Debt service 17,932,584 

Development projects 42,867,711 

Perpetual care - nonexpendable 7,054,258 

MTBE Settlement 13,718,258 

Total restricted net assets $ 187,103,831 

Of the net assets for business-type activities at June 30, 2009 totaling $531,886,681, $1,661,758 is 

restricted for construction of a rail system, and $7,083,361 is restricted for Prop 1B. 

(13) RESERVED AND DESIGNATED FUND BALANCES 

In the fund financial statements, reserves and designations segregate portions of fund balances that are 

either not available or have been earmarked for specific purposes. The various reserves and 

designations are established by actions of the City Council and Management and can be increased, 

reduced or eliminated by similar actions. 

71




In governmental funds, fund reservations are presented as a component of fund balances as follows: 

Special revenue 

fund 

Special Revenue 

Source Fund 

Capital projects funds 

Downtown 

Redevelopment 

Project Fund 

Earthquake 

Recovery 

Redevelopment 

Fund 

Other 

governmental 

funds 

Total 

governmental 

funds 

General Fund 

Reserved fund balances 

Prepaids and inventory $ 1,681,761 — 344 6,951 12,731 1,701,787 

Advances to other funds 21,287,264 — — — 4,989,556 26,276,820 

Encumbrances 6,029,153 4,453,081 — — 332,434 10,814,668 

Cash liquidity 3,546,996 — — — — 3,546,996 

Civic center bonds 1,355,138 — — — — 1,355,138 

Notes receivable 2,876,229 12,627,892 1,923,000 716,669 62,156,012 80,299,802 

Edison School development fees — 391,800 — — — 391,800 

Traffic mitigation 4,655,732 — — — — 4,655,732 

Long-term receivable from state — — — — 1,125 1,125 

Long-term receivable from FEMA — — — — 10,958 10,958 

Rail construction — — — — 3,901,497 3,901,497 

Prop A local return capital reserve — — — — 1,546,791 1,546,791 

Prop C local return capital reserve — — — — 1,032,177 1,032,177 

Low- and moderate-income housing — 1,364,886 — — — 1,364,886 

Childcare center — 634,403 — — — 634,403 

Parks — 434,454 — — — 434,454 

Traffic — 3,164,872 — — — 3,164,872 

Arts — 150,000 — — — 150,000 

Third Street mall/downtown parking — 6,312,069 — — — 6,312,069 

Animal shelter — 21,456 — — — 21,456 

Homeless contributions — 11,581 — — — 11,581 

Roads — 3,559,299 — — — 3,559,299 

Santa Monica Place redevelopment — 27,985 — — — 27,985 

Debt service — — — — 17,932,584 17,932,584 

Perpetual care — — — — 7,054,258 7,054,258 

Total reserved fund balances $ 41,432,273 33,153,778 1,923,344 723,620 98,970,123 176,203,138 

Prepaids and Inventory 

Reflects the carrying value of these assets. Since these assets are goods or services already purchased, 

they do not represent available expendable resources. 

Advances to Other Funds 

Reflects the balances due, net of deferred interest revenues, from other funds that are long-term in 

nature and do not represent available expendable resources of the City. 

Encumbrances 

Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not 

constitute expenditures or liabilities. 

Cash Liquidity 

The City’s Charter provides for a cash liquidity reserve to assure the payment of the operating expenses 

of the City on a cash basis. 

72




Civic Center Bonds 

Reflects the balance of bond proceeds plus accumulated interest at June 30, 2009 which is legally 

restricted for parking improvements within the Civic Center area. 

Notes Receivable 

Reflects the balances due on loans that are long-term in nature and do not represent available 

expendable resources of the City. 

Edison School Development Fees 

Represents the unspent balance of developer fees restricted for the future construction of joint use 

improvements and operating subsidies at Edison School. 

Traffic Mitigation 

Represents the unspent balance of developer fees restricted for traffic mitigation projects. 

Long-Term Receivable from State and FEMA 

Reflects the balances due from the State of California and FEMA for costs incurred after the January 17, 

1994 Northridge Earthquake that is long-term in nature and does not represent available expendable 

resources of the City. 

Rail Construction 

Represents the balance of Proposition A local return funds in the City’s Miscellaneous Grants Fund to 

be used exclusively for rail transportation improvements along the Santa Monica corridor. 

Prop A Local Return Capital Reserve 

Represents the balance of Proposition A local return funds in the City’s Miscellaneous Grants Fund to 

be used exclusively for bus stop and shelter improvements along the Santa Monica corridor. 

Prop C Local Return Capital Reserve 

Represents the balance of Proposition C local return funds in the City’s Miscellaneous Grants Fund to 

be used exclusively for 20 TH & Cloverfield Boulevard improvements. 

Low- and Moderate-Income Housing 

Represents unspent balance of funds from various sources restricted for use for low- and moderateincome 

housing. 

Childcare Center 

Represents unspent balance of developer fees restricted for future childcare center. 

Parks 

Represents unspent balance of developers fees restricted for parks projects. 

Traffic 

Represents balance of developer fees restricted for traffic mitigation projects. 

Arts 

Represents balance of funds received from various sources to be used for arts projects. 

73




Third Street Mall/Downtown Parking 

Represents balance of funds received from various sources to be used for Third Street mall/downtown 

parking. 

Animal Shelter 

Represents unspent balance of contributions from citizens that are restricted for use for the City’s 

Animal Shelter. 

Homeless Contributions 

Represents balance of funds received from various sources to be used for homeless services. 

Roads 

Represents balance of funds received from various sources for road projects. 

Santa Monica Place Redevelopment 

Represents reimbursement funds for professional services restricted for the redevelopment of Santa 

Monica Place. 

Debt Service 

Represents balance of funds held by trustees for future debt service and associated payments in the Debt 

Service and Capital Projects Funds. 

Perpetual Care 

Represents balance of funds held by the City restricted for use for expenses associated with perpetual 

care of the City's Cemetery and Mausoleum. 

74




Designated fund balances 

General Fund 

Special revenue 

fund 

Special 

Revenue 

Source Fund 


fund 

Earthquake 

Recovery 

Redevelopment 

Fund 

Other 

governmental 

funds 

Total 

governmental 

funds 

Civic area development $ 758,708 — — — 758,708 

Other purposes 471,716 — — — 471,716 

Compensated absences 9,622,333 — — 376,507 9,998,840 

Lifeguard headquarters — — — 10,000 10,000 

Santa Monica Place 5,809 — — — 5,809 

Affordable overnight accommodations 380,000 — — — 380,000 

Parks enhancement 370,845 — — — 370,845 

City Hall Renovation 3,320,718 — — — 3,320,718 

Education foundation 420,000 — — — 420,000 

Low-and moderate-income housing 186,855 — — 516,236 703,091 

Rent control — — — 58,975 58,975 

Consumer protection funds 39,218 — — — 39,218 

Franchise settlement — 1,801,450 — — 1,801,450 

Cable Franchise fee — 307,260 — — 307,260 

Environmental mitigation 1,569,131 — — — 1,569,131 

Capital improvements project start-up 260,000 — — — 260,000 

Employee training 120,000 — — — 120,000 

Comprehensive land use plan 101,845 — — — 101,845 

Homelessness capital projects 2,283 — — — 2,283 

Navy/Ozone/Longfellow improvements 83,000 — — — 83,000 

Economic uncertainty 8,200,000 — — — 8,200,000 

Fire vehicle replacement 3,067,600 — — — 3,067,600 

Green Energy 1,000,000 — — — 1,000,000 

Fuel set-aside 200,000 — — — 200,000 

Future expenditures 56,448,668 — — — 56,448,668 

Continuing capital projects 30,296,204 16,667,749 45,530,778 42,920,090 135,414,821 

Unrealized gain 1,058,087 — — — 1,058,087 

Library system improvements 416,000 — — — 416,000 

PERS 4,212,371 — — 114,327 4,326,698 

Operating contingency 25,250,000 — — — 25,250,000 

Total designated fund balances $ 147,861,391 18,776,459 45,530,778 43,996,135 256,164,763 

Civic Area Development 

Represents the balance of Transient Occupancy Tax receipts designated by City Council to be used for 

future development of the City's Civic Center area. 

Other Purposes 

Represents funds designated for other purposes. 

75




Compensated Absences 

Represents the estimated liability for compensated absences. 

Lifeguard Headquarters 

Represents funds designated for upgrade of lifeguard headquarters. 

Santa Monica Place 

Represents monies designated for future lease payments to the City Redevelopment Agency, Downtown 

Project, for Santa Monica Place parking structures through June 30, 2009. 

Affordable Overnight Accommodations 

Represents balance of funds designated for the development, redevelopment, expansion, replacement, 

repair, operation or use of affordable overnight accommodations within the City of Santa Monica. 

Parks Enhancement 

Represents funds designated by Council for use for enhancement of the City's parks. 

City Hall Renovation 

Represents funds designated by Council for use for City Hall renovation. 

Education Foundation 

Represents funds designated by Council to help finance a Santa Monica Malibu Unified School District 

Education Foundation. 

Low- and Moderate-Income Housing 

Represents funds designated by Council for low- and moderate-income housing. 

Rent Control 

Represents funds designated by the Rent Control Board to provide for operations uncertainties and the 

future replacement of certain equipment. 

Consumer Protection Funds 

Represents funds designated for use by the City Attorney’s Office for consumer protection. 

Franchise Settlement 

Represents funds received in satisfaction of dispute related to City cable television franchise. 

Cable Franchise Fee 

Represents funds received for cable franchise fees designated for PEG access facilities. 

Environmental Mitigation 

Represents funds designated for environmental mitigation. 

Capital Improvements Program Project Start-up 

Represents funds designated for capital improvements projects related to the library, Virginia Avenue 

Park and Civic Center Courthouse mitigation and murals. 

Employee Training 

Represents funds designated for employee training. 

76




Comprehensive Land Use Plan 

Represents funds for a comprehensive land use plan. 

Homelessness Capital Projects 

Represents balance of funds previously appropriated for various services to homeless persons 

designated by City Council to be used for homeless service programs. 

Navy/Ozone/Longfellow Improvements 

Represents funds designated by Council for future improvements to borderline neighborhoods. 

Economic Uncertainty 

Represents funds designated to mitigate potential revenue losses due to economic uncertainty. 

Fire Vehicle Replacement 

Represents funds designated by Council for a fire vehicle replacement program. 

Green Energy 

Represents funds for green energy projects. 

Fuel Set-Aside 

Represents funds for fluctuations in fuel prices. 

Future Expenditures 

Represents funds designated for future expenditures. 

Continuing Capital Projects 

Reflects the amount needed to fund the full cost of uncompleted capital projects at June 30, 2009. 

Unrealized Gain 

Represents management’s intent not to liquidate investments to realize the reported gains in the 

following year. 

Library System Improvements 

Represents funds designated for future library system improvements. 

PERS 

Represents funds designated for future payments to PERS. 

Operating Contingency 

Represents funds designated for operating contingency. 

(14) LITIGATION AND CONTINGENCIES 

Litigation 

The City is regularly subject to certain legal proceedings and claims that arise in the normal course of 

City operations. Many of these have not yet been fully adjudicated. In the opinion of the City Attorney, 

there are adequate legal defenses to these actions and it is not anticipated that there will be any adverse 

material effect on the financial position of the City. 

77




Grants 

The City recognizes as revenue grant monies received as reimbursement for costs incurred in certain 

Federal and State programs it administers. Although the City’s Federal grant programs have been 

audited through June 30, 2009 in accordance with the requirements of the Federal Single Audit Act of 

1997 and the related U.S. Office of Management and Budget Circular A-133, these programs may be 

subject to financial and compliance audits by the reimbursing agencies. The amount, if any, of 

expenditures which may be disallowed by the granting agencies cannot be determined at this time, 

although the City expects such amounts, if any, to be immaterial. 

Construction Commitments 

The City has a number of construction projects currently underway. Purchase orders, contracts and 

other commitments for these projects are recorded in order to reserve the portion of the applicable 

appropriation and are recorded at year-end as designations of fund balances. Approximately $152 

million will be payable upon future performance under these contracts. 

Operating Lease Revenue/Expenses 

The City has entered into operating lease arrangements as lessor for property. The following schedule is 

an analysis of the City’s investment in property under operating leases by major classes as of June 30, 

2009: 

Land $ 144,038,074 

Buildings 41,400,505 

Improvements other than buildings 10,302,396 

Machinery and equipment 1,782,774 

Infrastructure 8,213,438 

205,737,187 

Less: Accumulated depreciation (30,471,485) 

Total $ 175,265,702 

The following is a schedule of both future minimum lease rental revenue to be received by the City as 

lessor and lease payments to be made by the City as lessee under operating leases that have initial or 

remaining noncancelable lease terms in excess of one year as of June 30, 2009: 

78




Fiscal year ended June 30 Rental revenue Lease payments 

2010 $ 7,873,977 

2,639,493 

2011 6,786,241 2,547,348 

2012 6,299,957 1,963,673 

2013 5,289,806 1,451,192 

2014 4,733,623 1,451,192 

2015 - 2019 12,921,091 4,077,063 

2020 - 2024 10,626,913 406,387 

2025 - 2029 10,496,067 - 

2030 - 2034 5,933,843 - 

2035 - 2039 4,667,126 - 

2040 - 2044 3,035,336 - 

2045 - 2049 3,035,336 - 

2050 - 2054 3,035,336 - 

2055 - 2059 3,035,336 - 

2060 - 2064 3,035,336 - 

2065 - 2069 923,668 - 

2070 - 2074 232,237 - 

2075 - 2079 232,237 - 

2080 - 2084 232,237 - 

2085 - 2089 232,237 - 

2090 - 2094 232,237 - 

2095 - 2099 232,237 - 

2100 - 2104 19,353 - 

The total long-term lease rental revenues and expenditures/expenses for the year ended June 30, 2009, 

were $6,525,755 and $2,351,597, respectively. 

Line of Credit 

On May 1, 2008, the Redevelopment Agency of the City entered into a line of credit agreement with 

Bank of America. The agreement calls for an initial line of credit up to $50 million which may be 

increased at the Agency’s request and the bank’s option to $75 million. The line is available through 

June 2013 and is subject to quarterly interest payments at LIBOR plus 1.25%. The line is secured by 

future property tax increment revenues of the Low-and Moderate-Income Housing Fund subordinating 

to the bonded indebtedness of the fund. 

As of June 30, 2009 the City has drawn $15,485,324 on the line. 

Property Tax Revenues 

When adopting its budget for fiscal 2009-10, the State of California reflected in that budget a shift of a 

significant portion of tax increment revenue from redevelopment agencies to school districts for fiscal 

years 2009-10 and 2010-11. The California Redevelopment Association (“CRA”) in conjunction with 

several members has filed a lawsuit challenging the legality of this tax shift. The outcome of that lawsuit 

is not certain at this time. The outcome of a similar budget shift from the 2008-09 budget year was that 

the courts ruled the shift unconstitutional after a successful CRA suit. The State declined to appeal the 

court ruling. 

79




(15) SELF INSURANCE 

The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of 

assets; errors and omissions; injuries to employees and others; and natural disasters. The City has 

chosen to establish risk financing internal service funds where assets are set aside for claim settlements 

associated with such risks of loss up to certain limits and has obtained excess liability coverage through 

the Authority for California Cities Excess Liability (ACCEL), a joint powers authority of twelve 

medium-size California municipalities. ACCEL is a member of the California State Association of 

Counties Excess Insurance Authority for the purpose of providing access to excess workers’ 

compensation coverage for major employee injury risks through a program of pooled self insurance/reinsurance 

and insurance on a risk sharing basis. 

The City retains self-insurance up to $1,000,000 for general liability, automobile liability, and bus 

operations liability. ACCEL covers up to an additional $4,000,000 for all liabilities and arranges 

placement of excess of liability insurance over $5,000,000 up to $100,000,000. The City retains self 

insurance up to $750,000 for workers’ compensation. California State Association of Counties Excess 

Insurance Authority covers up to an additional $4,000,000 for workers’ compensation and arranges for 

excess of workers compensation over $5,000,000 and up to statutory limits. No claim settlements have 

exceeded insurance coverage in any of the past three years. 

In order to provide funds to pay claims, ACCEL collects premiums from each member. The premiums 

paid are credited with investment income at the rate earning on the Authority’s investments. Based on 

ACCEL’s June 30, 2009 audited financial statements, the City had deposits of $2,549,524 (17.1% of 

ACCEL’s total deposits) net of unpaid claims with ACCEL. Total assets of ACCEL at June 30, 2009 

were $30,625,253. ACCEL has no capital contributions. 

The City’s unpaid claims liabilities are based on the results of actuarial studies. The unpaid claims 

liabilities are compiled by the Risk Manager of the City and include amounts for claims incurred but not 

reported as of year end. Claims liabilities are calculated considering the effects of inflation, recent 

claim settlement trends including frequency and amount of payouts and other economic and social 

factors. Net present values of the unpaid claims liabilities are estimated for the year ended June 30, 

2009, based on interest rates of 4.45%. Revenues of the risk management funds, together with funds to 

be provided in the future, are expected to provide adequate resources to meet liabilities as they come 

due. Nonincremental claims expenses have not been included as part of the liability for claims. 

80




Changes in the liability for claims during the past two fiscal years for the self-insurance funds follow: 

Fund (by fiscal year) 

Beginning of 

year 

Current-year 

claims and 

changes in 

estimates 

Claims 

payments 

End of year 

Due within 

one year 

June 30, 2008: 

Comprehensive $ 5,076,652 1,021,194 (1,851,875) 4,245,971 1,523,291 

Bus 1,529,118 833,433 (421,913) 1,940,638 455,605 

Automobile 254,458 233,103 (252,306) 235,255 89,994 

Workers' Compensation 20,700,938 5,250,183 (5,315,934) 20,635,187 4,224,579 

$ 27,561,166 7,337,913 (7,842,028) 27,057,051 6,293,469 

June 30, 2009: 

Comprehensive $ 4,245,971 1,178,690 (1,790,199) 3,634,462 1,498,463 

Bus 1,940,638 2,344,914 (1,379,129) 2,906,423 1,938,009 

Automobile 235,255 174,070 (238,391) 170,934 103,062 

Workers' Compensation 20,635,187 7,772,027 (6,265,329) 22,141,885 5,411,498 

$ 27,057,051 11,469,701 (9,673,048) 28,853,704 8,951,032 

(16) EMPLOYEE BENEFIT PROGRAMS 

Santa Monica Public Employees’ Retirement Plan 

The City’s defined benefit pension plan, Santa Monica Public Employees’ Retirement Plan (Plan) 

provides retirement and disability benefits, annual cost-of living adjustments, and death benefits to plan 

members and beneficiaries. The Plan is part of the Public Agency portion of the California Public 

Employees Retirement System (CalPERS), an agent multiple-employer plan administered by CalPERS, 

which acts as a common investment and administrative agent for participating public employers within 

the State of California. State statutes within the Public Employees’ Retirement Law establish a menu of 

benefit provisions as well as other requirements. The City selects optional benefit provisions from the 

benefit menu by contract with CalPERS and adopts those benefits through City ordinance. CalPERS 

issues a separate comprehensive annual financial report available from the CalPERS Executive Office, 

400 Q Street, Sacramento, California 95811. 

Plan Description 

All full-time employees of the City and part-time employees who have worked over 1,000 hours during 

a fiscal year are eligible to participate in the Plan. The City is authorized by statute to establish and 

amend all plan provisions. Related benefits vest after five years of service. Upon five years of service, 

employees who retire at or after age 50 are entitled to receive an annual retirement benefit. 

The defined pension benefit is payable monthly for life, in an amount that varies, from 2.4% at age 50 to 

a maximum of 3% at age 55 for fire safety employees, 3% at age 50 for police safety employees and 2% 

at age 50 to a maximum of 2.7% at age 55 for miscellaneous employees, of the employee’s single 

highest year’s salary for each year of credited service. The Plan also provides death and disability 

benefits. 

81




Funding Policy 

Active full-time members in the Plan are required to contribute 8% for miscellaneous employees and 

9% for safety employees of their annual covered salary. The City makes such employee contributions 

on their behalf and for their account. The City is required to contribute the actuarially determined 

remaining amounts necessary to fund the benefits for its members. The actuarial methods and 

assumptions used are those adopted by the CalPERS Board of Administration. CalPERS prepares 

separate actuarial valuations for miscellaneous, fire safety and police safety members. The required 

employer contribution rate for the fiscal year ended June 30, 2009 was 15.458% for miscellaneous 

members; 33.415% for police safety members and 21.647% for fire safety members. The contribution 

requirements of the plan members are established by State statute and the employer contribution rate is 

established and may be amended by CalPERS. The miscellaneous members do reimburse the City for 

the cost of an enhanced benefit at a rate of 6.7%. 

Annual Pension Cost 

For the fiscal year ended June 30, 2009, the City’s annual pension cost and actual contributions were 

$26,944,672. The City also contributed $13,497,001 on behalf of employees. Employees directly 

contributed $204,271. Total contributions were $40,645,944. The required contribution for the fiscal 

year ended June 30, 2009 was determined as part of the June 30, 2006 actuarial valuation using the entry 

age normal actuarial cost method with the contributions determined as a percentage of payroll. The 

actuarial assumptions included (a) 7.75% investment rate of return (net of administrative expenses); (b) 

projected salary increases that vary by duration of service ranging from 3.25% to 14.45% for 

miscellaneous members, from 3.25% to 11.15% for safety members, and (c) 3.25% cost-of-living 

adjustment. Both (a) and (b) include an inflation component of 3.00%. The actuarial value of the 

Plan’s assets was determined using a technique that smoothes the effect of short-term volatility in the 

market value of investments by computing an expected value of assets along with the actual market 

value of assets. The Plan’s unfunded accrued liability (or excess assets) is being amortized as a level 

percentage of projected payrolls on a closed basis over a period not to exceed twenty years. 

82




Three Year Trend Information for the Annual Pension Cost Funding for the Plan (Unaudited) 

Fiscal year ended Annual pension cost Percentage of APC Net pension 

June 30 

(APC) 

contributed 

obligation 

2009 

Miscellaneous $ 16,399,721 

100% - 

Police 7,801,939 100% - 

Fire 2,743,012 100% - 

Total $ 26,944,672 

2008 


100% - 

Police 6,763,432 100% - 

Fire 2,572,118 100% - 

Total $ 24,767,790 

2007 


100% - 

Police 7,582,467 100% - 

Fire 2,634,266 100% - 

Total $ 20,719,971 

Pension Funding Information 

As of June 30, 2008, the date of the latest actuarial valuation, the City’s under funded liability was 

$150,156,936. This under funded liability was primarily the result of a decline in the value of the plan 

assets, less than anticipated investment returns by CalPERS and an increase in benefits for Public Safety 

employees. The City has addressed the under funded liability through additional contributions, as 

determined by CalPERS, in excess of the amount required to fund the current normal cost liability. 

Maintaining this funding schedule CalPERS has estimated that the under funded balance will be 

amortized over 15 years. 

83




PENSION FUNDING INFORMATION 

The City’s Pension Plan includes separate valuations for Miscellaneous Members, Fire Safety Members and Police Safety Members. The funded 

status of the Plan for each of these member groups for the actuarial valuations performed as of June 30, 2006 through 2008 are as follows 

(valuations for 2009 are not yet available): 

Miscellaneous Members 

(dollars in thousands) 

Valuation date 

(June 30) 

Entry age normal 

accrued liability 

Actuarial value 

of assets 

Underfunded liability 

(UAAL) 

Funded ratio 

Annual covered 

payroll 

UAAL as a percentage of 

payroll 

2008 $ 523,122 $ 438,590 $ 84,531 83.8 % $ 108,404 78.0 % 

2007 465,718 393,225 72,493 84.4 101,760 71.2 

2006 427,544 351,378 76,166 82.2 96,384 79.0 

84 

Fire Safety Members 



(June 30) 






(UAAL) 

Funded ratio 


payroll 


payroll 

2008 $ 142,775 $ 124,224 $ 18,551 87.0 % $ 12,514 148.2 % 

2007 133,026 116,798 16,228 87.8 11,951 135.8 

2006 124,716 107,932 16,784 86.5 11,512 145.8 


(June 30) 





Police Safety Members 



(UAAL) 

Funded ratio 


payroll 


payroll 

2008 $ 251,441 $ 204,336 $ 47,075 81.3 % $ 23,481 200.6 % 

2007 235,336 190,765 44,571 81.1 22,730 196.1 

2006 219,124 174,553 44,571 79.7 21,212 210.1




Deferred Compensation Plans 

The City offers to its employees an optional deferred compensation plan created in accordance with 

Section 457 of the Internal Revenue Code. This plan is available to substantially all employees and 

allows participants to defer a portion of their current income until future years to shelter such funds and 

earnings from state and federal taxation until withdrawal. The deferred compensation is not available to 

participants until termination, retirement, death or unforeseeable emergency. 

The City offers an employer discretionary, defined contribution plan established and governed under 

Internal Revenue Code Section 401(a). Employer-only contributions are calculated based upon a 

percentage of employee compensation under agreements with employee bargaining groups and unions. 

The City offers to its as-needed employees a separate Section 457 deferred compensation plan under the 

Omnibus Budget Reconciliation Act (OBRA). This plan is available to all as-needed employees who 

are not eligible to participate in CalPERS. This plan requires equal employer and employee 

contributions based on a percentage of earnings. 

These plans are administered through third-party administrators. The City does not perform the 

investing function and has no fiduciary accountability for the plans. Thus, plan assets and any related 

liabilities to plan participants have been excluded from the City’s basic financial statements. 

Other Postemployment Benefits 

In addition to providing pension benefits through CalPERS, the City, in accordance with agreements 

with various bargaining units and groups, provides medical insurance benefits that are considered other 

postemployment benefits (OPEB) to certain retired employees. Employees of the Supervisory Team 

Associates bargaining unit become eligible for a medical insurance benefit if they fulfill length of 

service requirements and have more than 75 unused sick leave days upon retirement. Employees of the 

Executive Pay Plan group and management employees of the Rent Control Board are eligible for a city 

paid medical insurance benefit if their combined retirement age and years of City service equals or 

exceeds 70. Although not delineated in any written agreement, all retirees are allowed to continue 

participating in one of the City’s health plans at the same rate as active employees. The City also 

maintains minimum benefits for public safety employees provided by the City’s contract with its 

healthcare provider. 

The City pays for OPEB on a pay-as-you-go basis. 

Annual OPEB Cost and Net OPEB Obligation 

The City’s OPEB cost is calculated based on the annual required contribution (ARC) of the employer, 

an amount actuarially determined in accordance within the parameters of GASB 45, “Accounting and 

Financial Reporting for Employers for Postemployment Benefits Other than Pensions.” The ARC 

represents a level of funding that if paid on an ongoing basis is projected to cover the normal cost each 

year and amortize any unfunded actuarial liabilities over a period not to exceed 30 years. The following 

table shows the components of the City’s annual OPEB cost for the year, the amount actually 

contributed to the plan, and changes in the City’s OPEB obligation to the plan. 

85




Development of Net OPEB Obligation and Annual OPEB Cost (in thousands) 

Annual required contribution $ 1,713 

Interest on OPEB obligation 62 

Adjustment to annual required contribution (53) 

Annual OPEB expense 1,722 

Contributions made (549) 

Increase in net OPEB obligation 1,173 

Net OPEB obligation - beginning of the year 1,242 

Net OPEB obligation - end of the year $ 2,415 

Schedule of Employer Contributions (in thousands) 

Fiscal Year 

Ended 

June 30 

Annual 

OPEB Costs 


Contribution 

Percentage 

Contribution 

Net OPEB 

Obligation 

2009 $ 1,722 $ 549 

31.88 % $ 2,415 

2008 1,638 396 24.18 1,242 

Actuarial methods and assumptions 

Projections of benefits for financial reporting purposes are based on the plan as understood by the City 

and its employees and include the types of benefits provided at the time of each valuation. The actuarial 

methods and assumptions used techniques that are designed to reduce short-term volatility in actuarial 

accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the 

calculations. Actuarial valuations involve estimates of the value of reported amounts and assumptions 

about the probability of events far into the future, and that actuarially determined amounts are subject to 

continual revision as results are compared to past expectations and new estimates are made about the 

future. 

In the July 1, 2008 actuarial valuation, the entry age normal actuarial cost method was used. The 

actuarial assumptions included a 5.0% rate of return, which is a blended rate of expected long-term 

return on plan assets on the City’s own investments calculated based on the funded level of the plan at 

the valuation date, and an annual health care cost trend of 11.0% initially, reduced by decrements to an 

ultimate rate of 5.0% after 8 years. Both rates include a 3.25% inflation assumption. The remaining 

amortization period at July 1, 2008 was twenty nine years. 

86




OPEB FUNDING INFORMATION (dollars in thousands): 

Type of Valuation 

Valuation 

date 

(July 1) 

Actuarial 

value of 

assets 

Actuarial 

accrued 

liability 

Unfunded 

actuarial accrued 

liability (UAAL) 


covered 

payroll 

UAAL as a 

percentage of 

payroll Interest rate Salary Scale 

Funded ratio 

Actual 2008 $ - $ 17,721 $ 17,721 - % $ 128,622 13.78% 5.00% 3.25% 

Actual 2007 - 16,518 16,518 - % 124,253 13.29% 5.00% 3.25% 

87


Notes to Basic Financial Statements 


Medical Trusts 

The City contributes, consistent with bargaining unit agreements, monies to medical trusts that provide 

postemployment medical benefits to employees. The amount of benefits provided to employees under 

these plans is limited solely to the amount contributed, related investment earnings, and forfeitures. 

During FY 2008-09 the City contributed $2,734,181 towards the retiree medical trusts. These are 

administered through third-party administrators and the City does not perform the investing function or 

have other significant responsibility relating to the management of plan assets. Thus, plan assets and 

any related liabilities have been excluded from the City’s basic financial statements. 

88

City of Santa Monica, California 

Year Ended June 30, 2009 

Supplementary Information


Nonmajor Governmental Fund Financial Statements 

Special Revenue Funds are used to account for specific revenues that are legally restricted to 

expenditures for specified purposes. The nonmajor special revenue funds used by the City in this report 

are listed below: 

Clean Beaches and Ocean Parcel Tax Fund – To account for activity related to implementation 

of Watershed Management Plan and the passage of Measure V in November 2006. 

Beach Recreation Fund – To account for beach parking and concession revenues and 

expenditures related to beach maintenance and recreation activities. 

Housing Authority Fund – To account for the receipt and expenditure of Federal and State 

funds related to housing programs. 

Disaster Relief Fund (Special Revenue Fund Type) – To account for Federal and State disaster 

relief revenues and expenditures associated with recovery from the January 17, 1994 Northridge 

Earthquake. 

Tenant Ownership Rights Charter Amendment (TORCA) Fund – To account for filing fee 

and conversion tax revenues and expenditures related to various housing programs authorized by 

Chapter XX of the City Charter. 

Community Development Block Grant (CDBG) Fund – To account for Federal entitlements 

under the Housing and Community Development Act of 1974, as amended. The City Council 

annually allocates CDBG funds to various programs. 

Miscellaneous Grants Fund – To account for the receipt and expenditure of Federal, State and 

County awarded grants and special allocations provided to the City. 

Citizens Option for Public Safety Fund – To account for the receipt and expenditure of the 

Citizens Option for Public Safety program established by AB3229 of 1996. 

Rent Control Fund – To account for revenues and expenditures of the Rent Control Board. 

Air Quality Management District (AQMD) Fund – To account for the receipt and expenditure 

of Air Quality Management District funds. 

Parks & Recreation Fund – To account for funds collected under the City's Unit Dwelling Tax. 

These funds are to be used for the acquisition, improvement and expansion of public parks, 

playgrounds and recreational facilities. 

Asset Seizure Fund – To account for the receipt and expenditure of equitable sharing program 

funds. 

Gas Tax Fund – To account for State and County gasoline tax allocations and any Federal funds 

provided to the City for street-related purposes. 

89


Capital Projects Funds are used to account for the accumulation of resources to be used for the 

acquisition or construction of major capital facilities of the City and Redevelopment Agency. The 

nonmajor capital projects funds used in this report are listed below: 

Capital Projects Fund – Primarily financed through transfers from the General Fund for 

acquisition, construction and major renovation of City infrastructure and facilities. 

Low-and Moderate-Income Housing (Downtown, Earthquake Recovery and Ocean Park 

Projects) – Under requirements of the State of California Health and Safety Code, the 

Redevelopment Agency of the City of Santa Monica is required to set aside 20% of tax increment 

revenues for housing projects benefiting low-and moderate-income households. 

Ocean Park Redevelopment Project Fund – To account for the revenues and expenditures of 

the Ocean Park Project area of the Redevelopment Agency of the City of Santa Monica. This 

thirty-three acre project consists of two areas: 1A and 1B. The redevelopment plan for the 

twenty-five acres of Area 1A was approved in June 1960 and work was completed in May 1987. 

The project contains two 17-story high-rise apartment buildings of 500 units and a park. The 

redevelopment plan for the eight acres of Area 1B was approved in January 1961 and work was 

completed in 1983. The project contains two senior citizen residential apartment complexes and 

a former utility building now used for other purposes. 

Debt Service Funds are used to accumulate resources for, and the payment of, general long-term debt 

principal, interest and related costs. The debt service funds used by the City in this report are listed below: 

City Fund – To account for accumulation of resources for, and the payment of, general long-term 

debt principal, interest and related costs for library, public safety facility and parking authority 

bonds. 

Redevelopment Agency Fund – To account for accumulation of resources for, and the payment 

of, general long-term debt principal, interest and related costs for the Ocean Park, downtown and 

earthquake recovery bonds. 

Permanent Funds are used to report resources that are legally restricted to the extent that only earnings, 

and not principal, may be used for restricted purposes. The specific permanent funds used by the City in 

this report are listed below: 

Cemetery Perpetual Care Fund – To account for all funds received by the City from cemetery 

users for the perpetual care of the cemetery grounds. 

Mausoleum Perpetual Care Fund – To account for all funds designated for perpetual care of 

the mausoleum located at the City cemetery. 

90


91


Combining Balance Sheet 

Nonmajor Governmental Funds By Fund Type 

June 30, 2009 

Total Total Total 

special capital Total Total nonmajor 

revenue projects debt service permanent governmental 

Assets funds funds funds funds funds 

Cash and investments $ 35,250,161 35,783,529 — 7,631 71,041,321 



Accounts 1,992,045 — — 30,916 2,022,961 

Notes 27,157,561 34,998,451 — — 62,156,012 

Property taxes — 1,288,317 — — 1,288,317 

Interest 265,319 132,385 — — 397,704 

Other governments 7,232,423 — — — 7,232,423 

Prepaids 12,034 697 — — 12,731 

Cash with fiscal agent — 667,957 17,932,584 7,015,711 25,616,252 

Advances to other funds 10,049,958 — — — 10,049,958 

Total assets $ 81,959,501 72,871,336 17,932,584 7,054,258 179,817,679 


Liabilities: 


674,935 — — 2,324,783 

Accrued liabilities 209,933 — — — 209,933 

Contracts payable (retained percentage) 720,082 72,691 — — 792,773 

Deferred revenue 12,359,595 — — — 12,359,595 

Deposits 66,966 — — — 66,966 

Advances from other funds 3,842,973 6,584,506 — — 10,427,479 

Total liabilities 18,849,397 7,332,132 — — 26,181,529 

Fund balances: 

Reserved 38,984,133 34,999,148 17,932,584 7,054,258 98,970,123 

Unreserved - designated 11,814,351 32,181,784 — — 43,996,135 

Unreserved - undesignated 12,311,620 (1,641,728) — — 10,669,892 

Total fund balances 63,110,104 65,539,204 17,932,584 7,054,258 153,636,150 

Total liabilities and 

fund balances $ 81,959,501 72,871,336 17,932,584 7,054,258 179,817,679 

92


Combining Statement of Revenues, Expenditures and 

Changes in Fund Balances 

Nonmajor Governmental Funds By Fund Type 


Total Total Total 

special capital Total Total nonmajor 

revenue projects debt service permanent governmental 

funds funds funds funds funds 

Revenues: 

Incremental property taxes $ — 17,491,314 — — 17,491,314 

Other taxes 4,648,073 — — — 4,648,073 

Licenses and permits 82,850 — — — 82,850 

Intergovernmental 33,514,843 — — — 33,514,843 

Charges for services 10,744,764 — — 63,234 10,807,998 

Investment income 1,551,938 634,525 261,149 (428,131) 2,019,481 

Rental income 79,225 — — — 79,225 

Other 17,742,610 135,234 — — 17,877,844 

Total revenues 68,364,303 18,261,073 261,149 (364,897) 86,521,628 

Expenditures: 

Current: 

General government 172,477 — — — 172,477 

Public safety 876,485 2,825,824 — — 3,702,309 

General services 13,248,216 — — — 13,248,216 

Cultural and recreation services 19,503,786 20,062 — — 19,523,848 

Library 74,860 — — — 74,860 

Housing and community development 22,028,301 21,195,535 — — 43,223,836 


Principal — — 8,375,000 — 8,375,000 

Interest — 389,292 7,436,535 — 7,825,827 

Total expenditures 55,904,125 24,430,713 15,811,535 — 96,146,373 


over (under) expenditures 12,460,178 (6,169,640) (15,550,386) (364,897) (9,624,745) 


Transfers in 410,541 4,315,378 14,529,805 — 19,255,724 

Transfers out (6,128,981) (3,260,194) — (307,083) (9,696,258) 

Line of credit proceeds — 15,485,324 — — 15,485,324 

Total other financing sources (uses) (5,718,440) 16,540,508 14,529,805 (307,083) 25,044,790 

Net change in fund balances 6,741,738 10,370,868 (1,020,581) (671,980) 15,420,045 

Fund balances at beginning of year 56,368,366 55,168,336 18,953,165 7,726,238 138,216,105 

Fund balances at end of year $ 63,110,104 65,539,204 17,932,584 7,054,258 153,636,150 

93



Nonmajor Special Revenue Funds 

June 30, 2009 

Clean Beaches 

Community 

and Ocean Beach Housing Disaster Development 

Assets Parcel Tax Recreation Authority Relief TORCA Block Grant 

Cash and investments $ 3,866,789 7,127,463 2,495,426 2,833,090 7,111,607 264,481 



Accounts 70,275 22,207 1,157 — — 3,257 

Notes — — — — 8,964,388 10,628,538 

Interest 18,954 53,457 15,714 93 51,055 — 

Other governments — — 496,242 903,634 — 36,990 

Prepaids — 1,044 — — — 3,348 

Advances to other funds — — — — — 6,931,058 

Total assets $ 3,956,018 7,204,171 3,008,539 3,736,817 16,127,050 17,867,672 


Liabilities: 

Accounts payable $ 34,626 580,100 251,370 628 32,006 — 

Accrued liabilities 475 82,852 — 853 — — 

Contracts payable (retained percentage) 37,762 — — — — — 

Deferred revenue — — 12,650 3,646,983 — 5,097,392 

Deposits — 66,966 — — — — 

Advances from other funds — 3,842,973 — — — — 

Total liabilities 72,863 4,572,891 264,020 3,648,464 32,006 5,097,392 


Reserved — 117,646 — 12,083 8,964,388 12,499,194 

Unreserved - designated 2,215,613 2,176,476 — — 6,187,969 188,397 

Unreserved - undesignated 1,667,542 337,158 2,744,519 76,270 942,687 82,689 

Total fund balances 3,883,155 2,631,280 2,744,519 88,353 16,095,044 12,770,280 

Total liabilities and fund 

balances $ 3,956,018 7,204,171 3,008,539 3,736,817 16,127,050 17,867,672 

94

Total 

nonmajor 

Citizens 

special 

Miscellaneous Option for Rent Parks and Asset revenue 

Grants Public Safety Control AQMD Recreation Seizure Gas Tax funds 

7,575,550 261,627 1,972,346 234,783 249,487 495,900 761,612 35,250,161 

1,895,149 — — — — — — 1,992,045 

7,564,635 — — — — — — 27,157,561 

88,750 2,046 18,799 966 1,716 2,840 10,929 265,319 

5,769,457 — — 26,100 — — — 7,232,423 

— — 7,642 — — — — 12,034 

3,118,900 — — — — — — 10,049,958 

26,012,441 263,673 1,998,787 261,849 251,203 498,740 772,541 81,959,501 

702,901 14,969 30,748 — — — 2,500 1,649,848 

1,308 — 124,445 — — — — 209,933 

681,383 — — — — — 937 720,082 

3,602,570 — — — — — — 12,359,595 

— — — — — — — 66,966 

— — — — — — — 3,842,973 

4,988,162 14,969 155,193 — — — 3,437 18,849,397 

17,369,430 — 21,392 — — — — 38,984,133 

327,839 126,895 381,802 — 140,860 30,354 38,146 11,814,351 

3,327,010 121,809 1,440,400 261,849 110,343 468,386 730,958 12,311,620 

21,024,279 248,704 1,843,594 261,849 251,203 498,740 769,104 63,110,104 

26,012,441 263,673 1,998,787 261,849 251,203 498,740 772,541 81,959,501 

95



Changes in Fund Balances (Deficits) 

Nonmajor Special Revenue Funds 


Clean 

Beaches 

Community 

and Ocean Beach Housing Disaster Development 

Parcel Tax Recreation Authority Relief TORCA Block Grant 

Revenues: 

Other taxes $ 2,619,430 

— — — 9,240 — 

Licenses and permits — 82,850 — — — — 

Intergovernmental — — 14,957,808 6,848,026 — 1,861,944 

Charges for services — 6,605,720 — 2,956 — — 

Investment income 110,137 281,701 86,629 — 329,612 70,267 

Rental income — 73,576 — — — — 

Other — 596,877 50,770 10,517 99,899 — 

Total revenues 2,729,567 7,640,724 15,095,207 6,861,499 438,751 1,932,211 

Expenditures: 

Current: 

General government — 161,960 — 10,517 — — 

Public safety — — — — — — 

General services 1,382,421 2,628,144 — 940,648 — 1,801,119 

Cultural and recreation services — 4,824,391 — — — 6,841 

Library — — — — — — 

Housing and community development — — 14,567,048 — 1,891,802 194,312 

Total expenditures 1,382,421 7,614,495 14,567,048 951,165 1,891,802 2,002,272 


over (under) expenditures 1,347,146 26,229 528,159 5,910,334 (1,453,051) (70,061) 


Transfers in — — 410,541 — — — 

Transfers out — — (1,179,659) — (6,423) (878,961) 

Total other financing sources (uses) — — (769,118) — (6,423) (878,961) 

Net change in fund balances 1,347,146 26,229 (240,959) 5,910,334 (1,459,474) (949,022) 

Fund balances (deficits) at beginning of year 2,536,009 2,605,051 2,985,478 (5,821,981) 17,554,518 13,719,302 

Fund balances at end of year $ 3,883,155 2,631,280 2,744,519 88,353 16,095,044 12,770,280 

96

Total 

nonmajor 

Citizens 

special 

Miscellaneous Option for Parks and Asset revenue 

Grants Public Safety Rent Control AQMD Recreation Seizure Gas Tax funds 

2,004,603 — — — 14,800 — — 4,648,073 

— — — — — — — 82,850 

7,420,356 100,000 — 229,791 — 246,096 1,850,822 33,514,843 

— — 4,136,088 — — — — 10,744,764 

460,330 8,861 129,847 1,763 9,373 12,704 50,714 1,551,938 

— — — — — — 5,649 79,225 

16,919,729 — 64,818 — — — — 17,742,610 

26,805,018 108,861 4,330,753 231,554 24,173 258,800 1,907,185 68,364,303 

— — — — — — — 172,477 

636,236 104,172 — — — 136,077 — 876,485 

5,548,779 — — 153,463 — — 793,642 13,248,216 

14,642,052 — — — 30,502 — — 19,503,786 

74,860 — — — — — — 74,860 

1,183,957 — 4,191,182 — — — — 22,028,301 

22,085,884 104,172 4,191,182 153,463 30,502 136,077 793,642 55,904,125 

4,719,134 4,689 139,571 78,091 (6,329) 122,723 1,113,543 12,460,178 

— — — — — — — 410,541 

(2,207,467) — — — — — (1,856,471) (6,128,981) 

(2,207,467) — — — — — (1,856,471) (5,718,440) 

2,511,667 4,689 139,571 78,091 (6,329) 122,723 (742,928) 6,741,738 

18,512,612 244,015 1,704,023 183,758 257,532 376,017 1,512,032 56,368,366 

21,024,279 248,704 1,843,594 261,849 251,203 498,740 769,104 63,110,104 

97


Schedule of Revenues, Expenditures and Changes in 


Clean Beaches and Ocean Parcel Tax Special Revenue Fund 


98 

Less 


encumbered 2008-2009 budgetary positive 

Budget Actual expenditures* encumbrances basis (negative) 

Revenues: 

Other taxes $ 2,357,500 2,619,430 — — 2,619,430 261,930 

Investment income 67,000 110,137 — — 110,137 43,137 

Total revenues 2,424,500 2,729,567 — — 2,729,567 305,067 

Expenditures: 


Supplies 44,940 44,940 — — 44,940 — 

Capital improvement 3,616,956 1,337,481 — 1,401,292 2,738,773 878,183 

Total general services 3,661,896 1,382,421 — 1,401,292 2,783,713 878,183 

Net change in fund balance (1,237,396) 1,347,146 — (1,401,292) (54,146) 1,183,250 

Fund balance at beginning of year 2,536,009 2,536,009 — — 2,536,009 — 

Fund balance at end of year $ 1,298,613 3,883,155 — (1,401,292) 2,481,863 1,183,250 

* No encumbrances were outstanding at June 30, 2008.




Beach Recreation Special Revenue Fund 


Less 



Budget Actual expenditures encumbrances basis (negative) 

Revenues: 

Licenses and permits $ 112,683 

82,850 — — 82,850 (29,833) 

Charges for services 7,213,214 6,605,720 — — 6,605,720 (607,494) 


Rental income 240,285 73,576 — — 73,576 (166,709) 

Other 542,715 596,877 — — 596,877 54,162 

Total revenues 8,330,897 7,640,724 — — 7,640,724 (690,173) 

Expenditures: 


Capital improvement 454,868 161,960 — 1,803 163,763 291,105 

Total general government 454,868 161,960 — 1,803 163,763 291,105 

99 


Community maintenance 

Salaries 1,718,485 1,458,738 — — 1,458,738 259,747 

Supplies 1,573,094 1,163,322 — — 1,163,322 409,772 

Capital outlay 18,143 6,084 — — 6,084 12,059 

Total community maintenance 3,309,722 2,628,144 — — 2,628,144 681,578 

Capital improvement 250,000 — — — — 250,000 

Total general services 3,559,722 2,628,144 — — 2,628,144 931,578 


Community and cultural services 

Salaries 545,963 415,052 — — 415,052 130,911 

Supplies 4,618,366 4,260,832 47,875 116,602 4,329,559 288,807 

Capital outlay 19,099 3,152 — — 3,152 15,947 

Total community and cultural services 5,183,428 4,679,036 47,875 116,602 4,747,763 435,665 

Capital improvement 1,600,917 145,355 — — 145,355 1,455,562 

Total cultural and recreation services 6,784,345 4,824,391 47,875 116,602 4,893,118 1,891,227 

Total expenditures 10,798,935 7,614,495 47,875 118,405 7,685,025 3,113,910 

Net change in fund balance (2,468,038) 26,229 (47,875) (118,405) (44,301) 2,423,737 


Fund balance at end of year $ 137,013 2,631,280 (47,875) (118,405) 2,560,750 2,423,737




Housing Authority Special Revenue Fund 


100 

Less 



Budget Actual expenditures* encumbrances* basis (negative) 

Revenues: 

Intergovernmental $ 15,460,700 14,957,808 — — 14,957,808 (502,892) 


Other — 50,770 — — 50,770 50,770 


Expenditures: 


Supplies 15,553,600 14,560,948 — — 14,560,948 992,652 

Capital improvement 6,100 6,100 — — 6,100 — 

Total housing and community development 15,559,700 14,567,048 — — 14,567,048 992,652 


(under) expenditures (54,000) 528,159 — — 528,159 582,159 


Transfers in 1,200,000 410,541 — — 410,541 (789,459) 

Transfers out (1,355,515) (1,179,659) — — (1,179,659) 175,856 

Net change in fund balance (209,515) (240,959) — — (240,959) (31,444) 


Fund balance at end of year $ 2,775,963 2,744,519 — — 2,744,519 (31,444) 

* No encumbrances were outstanding at June 30, 2008 and 2009.



Fund Balance (Deficit) – Budget and Actual (Non-GAAP Basis) 

Disaster Relief Special Revenue Fund 


Less 




Revenues 

Intergovernmental $ 4,543,800 6,848,026 — — 6,848,026 2,304,226 

Investment income — 2,956 — — 2,956 2,956 

Other — 10,517 — — 10,517 10,517 

Total revenues 4,543,800 6,861,499 — — 6,861,499 2,317,699 

101 

Expenditures: 


Salaries 727 727 — — 727 — 

Supplies 10,423 9,790 — — 9,790 633 

Total general government 11,150 10,517 — — 10,517 633 

General Services: 

Capital improvement 4,495,664 940,648 — 360,669 1,301,317 3,194,347 

Total general services 4,495,664 940,648 — 360,669 1,301,317 3,194,347 

Total expenditures 4,506,814 951,165 — 360,669 1,311,834 3,194,980 

Net change in fund balance 36,986 5,910,334 — (360,669) 5,549,665 5,512,679 

Fund deficit at beginning of year (5,821,981) (5,821,981) — — (5,821,981) — 

Fund balance (deficit) at end of year $ ( 5,784,995) 

88,353 — (360,669) (272,316) 5,512,679 





Tenant Ownership Rights Charter Amendment 

(TORCA) Special Revenue Fund 


102 

Less 




Revenues: 

Other taxes $ 100,000 

9,240 — — 9,240 (90,760) 


Other — 99,899 — — 99,899 99,899 

Total revenues 374,000 438,751 — — 438,751 64,751 

Expenditures: 


Supplies 9,038 9,038 — — 9,038 — 

Capital improvement 8,102,650 1,882,764 — 1,205,200 3,087,964 5,014,686 

Total housing and community development 8,111,688 1,891,802 — 1,205,200 3,097,002 5,014,686 


over (under) expenditures (7,737,688) (1,453,051) — (1,205,200) (2,658,251) 5,079,437 

Other financing (uses) – transfers out (73,500) (6,423) — — (6,423) 67,077 

Net change in fund balance (7,811,188) (1,459,474) — (1,205,200) (2,664,674) 5,146,514 


Fund balance at end of year $ 9,743,330 16,095,044 — (1,205,200) 14,889,844 5,146,514 





Community Development Block Grant 

(CDBG) Special Revenue Fund 


Less 




Revenues 

Intergovernmental $ 3,294,970 1,861,944 — — 1,861,944 (1,433,026) 


Total revenues 3,344,970 1,932,211 — — 1,932,211 (1,412,759) 

Expenditures: 

General Services: 

Capital improvement 2,114,884 1,801,119 — 37,750 1,838,869 276,015 

Total general services 2,114,884 1,801,119 — 37,750 1,838,869 276,015 

103 



Total cultural and recreation services 47,403 6,841 — 32,936 39,777 7,626 


Supplies 94,402 94,402 — — 94,402 — 


Total housing and community development 547,466 194,312 — 275,964 470,276 77,190 

Total expenditures 2,709,753 2,002,272 — 346,650 2,348,922 360,831 


over (under) expenditures 635,217 (70,061) — (346,650) (416,711) (1,051,928) 

Other financing (uses) – transfers out (1,131,582) (878,961) — — (878,961) 252,621 

Net change in fund balance (496,365) (949,022) — (346,650) (1,295,672) (799,307) 


Fund balance at end of year $ 13,222,937 12,770,280 — (346,650) 12,423,630 (799,307) 





Miscellaneous Grants Special Revenue Fund 


104 

Less 



Budget Actual expenditures encumbrances basis (negative) 

Revenues: 

Other taxes $ 2,317,646 2,004,603 — — 2,004,603 (313,043) 

Intergovernmental 15,450,973 7,420,356 — — 7,420,356 (8,030,617) 


Other 10,812,029 16,919,729 — — 16,919,729 6,107,700 

Total revenues 29,020,648 26,805,018 — — 26,805,018 (2,215,630) 

Expenditures: 


Police 

Salaries 100,486 78,429 — — 78,429 22,057 

Supplies 493,028 166,398 9,965 — 156,433 336,595 

Total police 593,514 244,827 9,965 — 234,862 358,652 

Fire 

Supplies 442,870 135,487 — 155,787 291,274 151,596 

Capital outlay 255,922 255,922 — — 255,922 — 

Total fire 698,792 391,409 — 155,787 547,196 151,596 

Capital improvement 276,973 — — 34,314 34,314 242,659 

Total public safety 1,569,279 636,236 9,965 190,101 816,372 752,907 


Salaries 15,000 — — — — 15,000 

Supplies 464,582 138,597 — — 138,597 325,985 


Total general services 24,499,729 5,548,779 — 3,054,380 8,603,159 15,896,570 


Supplies 386,256 272,882 — 43,409 316,291 69,965 

Capital improvement 15,744,676 14,369,170 — 744,406 15,113,576 631,100 

Total cultural and recreation services 16,130,932 14,642,052 — 787,815 15,429,867 701,065 

Library: 

Salaries 6,293 6,242 — — 6,242 51 

Supplies 72,362 68,618 256 — 68,362 4,000 

Total library 78,655 74,860 256 — 74,604 4,051 


Supplies 45,000 123,767 87,158 6,237 42,846 2,154 

Capital improvement 2,963,774 1,060,190 — 68,646 1,128,836 1,834,938 

Total housing and community development 3,008,774 1,183,957 87,158 74,883 1,171,682 1,837,092 

Total expenditures 45,287,369 22,085,884 97,379 4,107,179 26,095,684 19,191,685 


over (under) expenditures (16,266,721) 4,719,134 (97,379) (4,107,179) 709,334 16,976,055 

Other financing (uses) – transfers out (2,675,137) (2,207,467) — — (2,207,467) 467,670 

Net change in fund balance (18,941,858) 2,511,667 (97,379) (4,107,179) (1,498,133) 17,443,725 


Fund balance (deficit) at end of year $ (429,246) 21,024,279 (97,379) (4,107,179) 17,014,479 17,443,725




Citizens Option for Public Safety Special Revenue Fund 


105 

Less 




Revenues: 

Intergovernmental $ 145,590 100,000 — — 100,000 (45,590) 

Investment income 10,000 8,861 — — 8,861 (1,139) 

Total revenues 155,590 108,861 — — 108,861 (46,729) 

Expenditures: 



Total expenditures 231,067 104,172 — 41,157 145,329 85,738 

Net change in fund balance (75,477) 4,689 — (41,157) (36,468) 39,009 

Fund balance at beginning of year 244,015 244,015 — — 244,015 — 

Fund balance at end of year $ 168,538 248,704 — (41,157) 207,547 39,009 





Air Quality Management District (AQMD) Special Revenue Fund 


Less 



Budget Actual expenditures* encumbrances* basis (negative) 

106 

Revenues: 

Intergovernmental $ 650,000 229,791 — — 229,791 (420,209) 

Investment income 11,000 1,763 — — 1,763 (9,237) 


Expenditures: 


Supplies 2,400 1,650 — — 1,650 750 

Capital improvement 762,250 151,813 — — 151,813 610,437 

Total general services 764,650 153,463 — — 153,463 611,187 

Total expenditures 764,650 153,463 — — 153,463 611,187 

Net change in fund balance (103,650) 78,091 — — 78,091 181,741 


Fund balance at end of year $ 80,108 261,849 — — 261,849 181,741 

* No encumbrances were outstanding at June 30, 2008 and 2009.




Parks and Recreation Special Revenue Fund 


Less 




107 

Revenues: 

Other taxes $ 46,000 

14,800 — — 14,800 (31,200) 



Expenditures: 

Cultural and recreation: 


Total cultural and recreation 170,754 30,502 — 20,053 50,555 120,199 

Net change in fund balance (122,754) (6,329) — (20,053) (26,382) 96,372 







Gas Tax Special Revenue Fund 


108 

Less 




Revenues: 

Intergovernmental $ 2,247,150 1,850,822 — — 1,850,822 (396,328) 


Rental income 20,000 5,649 — — 5,649 (14,351) 


Expenditures: 


Supplies 5,300 4,340 — — 4,340 960 

Capital improvements 827,448 789,302 — 25,937 815,239 12,209 

Total general services 832,748 793,642 — 25,937 819,579 13,169 


over (under) expenditures 1,455,402 1,113,543 — (25,937) 1,087,606 (367,796) 

Other financing (uses) – transfers out (2,267,150) (1,856,471) — — (1,856,471) 410,679 

Net change in fund balance (811,748) (742,928) — (25,937) (768,865) 42,883 




THIS PAGE INTENTIONALLY LEFT BLANK 

109



Nonmajor Capital Projects Funds 

June 30, 2009 

Assets 

Total 

nonmajor 

Low/mod Ocean Park capital 

Capital Housing Redevelopment projects 

Projects Projects Project funds 

Cash and investments $ 19,833,460 12,118,230 3,831,839 35,783,529 



Notes — 32,602,725 2,395,726 34,998,451 

Property taxes — 781,434 506,883 1,288,317 

Interest — 97,855 34,530 132,385 

Prepaids — — 697 697 

Cash with fiscal agent — 113,949 554,008 667,957 

Total assets $ 19,833,460 45,714,193 7,323,683 72,871,336 

Liabilities and 

Fund Balances 

Liabilities: 

Accounts payable $ 352,494 

322,441 — 674,935 

Contracts payable 72,691 — — 72,691 

Advances from other funds — — 6,584,506 6,584,506 

Total liabilities 425,185 322,441 6,584,506 7,332,132 


Reserved — 32,602,725 2,396,423 34,999,148 

Unreserved - designated 19,392,757 12,789,027 — 32,181,784 

Unreserved - undesignated 15,518 — (1,657,246) (1,641,728) 

Total fund balances 19,408,275 45,391,752 739,177 65,539,204 


balances $ 19,833,460 45,714,193 7,323,683 72,871,336 

110




Nonmajor Capital Projects Funds 


Total 

nonmajor 

Low/mod Ocean Park capital 

Capital Housing Redevelopment projects 

Projects Projects Project funds 

Revenues: 

Incremental property taxes $ — 14,257,870 3,233,444 17,491,314 

Investment income — 469,513 165,012 634,525 

Other — 125,582 9,652 135,234 

Total revenues — 14,852,965 3,408,108 18,261,073 

Expenditures: 

Current: 

General services 2,825,824 — — 2,825,824 

Cultural and recreation services 20,062 — — 20,062 

Housing and community development 73,587 18,686,002 2,435,946 21,195,535 


Interest — 175,861 213,431 389,292 

Total expenditures 2,919,473 18,861,863 2,649,377 24,430,713 


over (under) expenditures (2,919,473) (4,008,898) 758,731 (6,169,640) 


Transfers in 4,315,378 — — 4,315,378 

Transfers out — (1,781,887) (1,478,307) (3,260,194) 

Line of credit proceeds — 15,485,324 — 15,485,324 

Total other financing (uses) 4,315,378 13,703,437 (1,478,307) 16,540,508 

Net change in fund balances 1,395,905 9,694,539 (719,576) 10,370,868 

Fund balances at beginning of year 18,012,370 35,697,213 1,458,753 55,168,336 

Fund balances at end of year $ 19,408,275 45,391,752 739,177 65,539,204 

111




Downtown Redevelopment Project Capital Projects Fund (Major Fund) 


112 

Less 




Revenues: 

Incremental property taxes $ 633,000 

986,150 797,550 — — 797,550 (188,600) 

Investment income 18,000 18,000 92,295 — — 92,295 74,295 

Rental income 180,000 180,000 — — — — (180,000) 

Other income — — 7,561 — — 7,561 7,561 

Total project revenues 831,000 1,184,150 897,406 — — 897,406 (286,744) 

Expenditures: 


Supplies 70,191 112,894 113,372 — — 113,372 (478) 

Capital improvements — 1,625,399 173,324 — 76,447 249,771 1,375,628 

Total housing and community development 70,191 1,738,293 286,696 — 76,447 363,143 1,375,150 

Debt service expenditures – interest 230,000 525,950 560,691 — — 560,691 (34,741) 

Total project expenditures 300,191 2,264,243 847,387 — 76,447 923,834 1,340,409 


over (under) expenditures 530,809 (1,080,093) 50,019 — (76,447) (26,428) 1,053,665 

Other financing (uses): 

Transfers out (411,080) (411,080) (343,624) — — (343,624) 67,456 

Net change in fund balance 119,729 (1,491,173) (293,605) — (76,447) (370,052) 1,121,121 

Fund (deficit) at beginning of year (15,050,909) (15,050,909) (15,050,909) — — (15,050,909) — 

Fund (deficit) at end of year $ (14,931,180) (16,542,082) (15,344,514) — (76,447) (15,420,961) 1,121,121 





Earthquake Recovery Redevelopment Project Capital Projects Fund (Major Fund) 


113 

Less 




Revenues: 

Incremental property taxes $ 47,050,000 52,827,200 53,000,885 — — 53,000,885 173,685 

Investment income 1,605,000 1,605,000 2,085,633 — — 2,085,633 480,633 

Other 100,000 100,000 529,915 — — 529,915 429,915 

Total project revenues 48,755,000 54,532,200 55,616,433 — — 55,616,433 1,084,233 

Expenditures: 


Payment of property tax increment 14,526,000 17,184,000 17,038,515 — — 17,038,515 145,485 

Supplies 1,348,807 5,296,156 1,483,829 — — 1,483,829 3,812,327 

Capital improvements 38,105,000 67,727,772 22,214,485 — 5,744,578 27,959,063 39,768,709 

Total project expenditures 53,979,807 90,207,928 40,736,829 — 5,744,578 46,481,407 43,726,521 


over (under) expenditures (5,224,807) (35,675,728) 14,879,604 — (5,744,578) 9,135,026 44,810,754 


Transfers out (9,560,369) (9,560,369) (9,517,708) — — (9,517,708) 42,661 

Net change in fund balance (14,785,176) (45,236,097) 5,361,896 — (5,744,578) (382,682) 44,853,415 

Fund balance at beginning of year 48,110,666 48,110,666 48,110,666 — — 48,110,666 — 

Fund balance at end of year $ 33,325,490 2,874,569 53,472,562 — (5,744,578) 47,727,984 44,853,415 





Capital Projects Capital Projects Fund 


Revenues: 

Less 




Total revenues $ — 

— — — — — 

Expenditures: 



Total general services 18,577,069 2,825,824 — 6,452,420 9,278,244 9,298,825 

114 


Capital improvement 3,625,678 20,062 — — 20,062 3,605,616 

Total cultural and recreation services 3,625,678 20,062 — — 20,062 3,605,616 


Capital improvement 105,000 73,587 — — 73,587 31,413 

Total cultural and recreation services 105,000 73,587 — — 73,587 31,413 

Total expenditures 22,307,747 2,919,473 — 6,452,420 9,371,893 12,935,854 


(under) expenditures (22,307,747) (2,919,473) — (6,452,420) (9,371,893) 12,935,854 

Other financing (uses) – transfers in 4,315,378 4,315,378 — — 4,315,378 — 

Net change in fund balance (17,992,369) 1,395,905 — (6,452,420) (5,056,515) 12,935,854 


Fund balance at end of year $ 20,001 19,408,275 — (6,452,420) 12,955,855 12,935,854 





Low/Moderate Housing Capital Projects Fund 


115 

Less 




Revenues: 

Incremental property taxes $ 14,224,000 14,257,870 — — 14,257,870 33,870 


Other income — 125,582 — — 125,582 125,582 

Total project revenues 14,557,000 14,852,965 — — 14,852,965 295,965 

Expenditures: 


Capital improvements 78,893,350 

— 

18,686,002 — 17,021,464 35,707,466 43,185,884 

Debt service expenditures – interest — 175,861 — — 175,861 (175,861) 

Total project expenditures 78,893,350 18,861,863 — 17,021,464 35,883,327 43,010,023 


over (under) expenditures (64,336,350) (4,008,898) — (17,021,464) (21,030,362) 43,305,988 


Transfers out (2,853,624) (1,781,887) — — (1,781,887) 1,071,737 

Line of credit proceeds — 15,485,324 — — 15,485,324 15,485,324 

Total other financing (uses) (2,853,624) 13,703,437 — — 13,703,437 16,557,061 

Net change in fund balance (67,189,974) 9,694,539 — (17,021,464) (7,326,925) 59,863,049 


Fund balance (deficit) at end of year $ (31,492,761) 45,391,752 — (17,021,464) 28,370,288 59,863,049 





Ocean Park Redevelopment Project Capital Projects Fund 


116 

Less 




Revenues: 

Incremental property taxes $ 3,082,650 3,233,444 — — 3,233,444 150,794 


Other — 9,652 — — 9,652 9,652 

Total project revenues 3,237,650 3,408,108 — — 3,408,108 170,458 

Expenditures: 


Supplies 450,129 129,270 — — 129,270 320,859 

Capital improvements 4,971,931 2,306,676 — 1,142,111 3,448,787 1,523,144 

Total housing and community development 5,422,060 2,435,946 — 1,142,111 3,578,057 1,844,003 

Debt service expenditures – interest — 213,431 — — 213,431 (213,431) 

Total project expenditures 5,422,060 2,649,377 — 1,142,111 3,791,488 1,630,572 


over (under) expenditures (2,184,410) 758,731 — (1,142,111) (383,380) 1,801,030 


Transfers out (1,604,598) (1,478,307) — — (1,478,307) 126,291 

Net change in fund balance (3,789,008) (719,576) — (1,142,111) (1,861,687) 1,927,321 


Fund balance (deficit) at end of year $ (2,330,255) 739,177 — (1,142,111) (402,934) 1,927,321 



117



Nonmajor Debt Service Funds 

June 30, 2009 

Total 

nonmajor 

Redevelopment debt service 

Assets City Agency funds 

Cash with fiscal agent $ 11,686,997 6,245,587 17,932,584 

Total assets $ 11,686,997 6,245,587 17,932,584 

Liabilities and 

Fund Balances 

Fund balances : 

Reserved - debt service $ 11,686,997 6,245,587 17,932,584 

Total fund balances 11,686,997 6,245,587 17,932,584 


balances $ 11,686,997 6,245,587 17,932,584 

118




Nonmajor Debt Service Funds 


Total 

nonmajor 

City 

Redevelopment 

Agency 

debt service 

funds 

Revenues - investment income $ 162,026 

99,123 261,149 

Expenditures: 

Principal 4,585,000 3,790,000 8,375,000 

Interest 3,956,397 3,480,138 7,436,535 

Total expenditures 8,541,397 7,270,138 15,811,535 

Deficiency of revenues 

under expenditures (8,379,371) (7,171,015) (15,550,386) 

Other financing sources - transfers in 8,434,521 6,095,284 14,529,805 

Net change in fund balance 55,150 (1,075,731) (1,020,581) 

Fund balances at beginning of year 11,631,847 7,321,318 18,953,165 

Fund balances at end of year $ 11,686,997 6,245,587 17,932,584 

119



Nonmajor Permanent Funds 

June 30, 2009 

Total 

Cemetery Mausoleum nonmajor 

Perpetual Perpetual permanent 

Assets Care Care funds 

Cash and investments $ 5,355 

2,276 7,631 



Accounts 28,000 2,916 30,916 

Cash with fiscal agent 6,349,760 665,951 7,015,711 

Total assets $ 6,383,115 671,143 7,054,258 

Fund Balances 


Reserved for perpetual care 6,383,115 671,143 7,054,258 

Total fund balances $ 6,383,115 671,143 7,054,258 

120




Nonmajor Permanent Funds 


Total 

Cemetery 

Perpetual 

Mausoleum 

Perpetual 

nonmajor 

permanent 

Care Care funds 

Revenues: 

Charges for services $ 48,843 

14,391 63,234 

Investment income (388,427) (39,704) (428,131) 

Total revenues (339,584) (25,313) (364,897) 

Other financing (uses) - transfers out (278,307) (28,776) (307,083) 

Net change in fund balance (617,891) (54,089) (671,980) 

Fund balances at beginning of year 7,001,006 725,232 7,726,238 

Fund balances at end of year $ 6,383,115 671,143 7,054,258 

121


122


Nonmajor Enterprise Fund Financial Statements 

Enterprise Funds are used to account for operations that are financed and operated in a manner similar 

to private business enterprises (a) where the intent is that the costs (expenses, including depreciation) of 

providing goods or services to the general public on a continuing basis be financed or recovered primarily 

through user charges, or (b) where the City has decided that periodic determination of revenues earned, 

expenses incurred and/or net income is appropriate for capital maintenance, public policy, management 

control, accountability or other purposes. 

Water Fund – To account for revenues and expenses of providing water service to the citizens of 

the City. 

Solid Waste Management Fund – To account for revenues and expenses of operating the City's 

refuse collection, street sweeping and cleaning, and recycling programs. 

Pier Fund – To account for revenues and expenses connected with management and 

development of the Santa Monica Pier. 

Civic Auditorium Fund – To account for revenues and expenses connected with management of 

the Santa Monica Civic Auditorium. 

Airport Fund – To account for revenues and expenses connected with management of the Santa 

Monica Municipal Airport. 

Stormwater Management Fund – To account for revenues and expenses associated with storm 

water management. 

Cemetery Fund – To account for revenues and expenses associated with operation of Woodlawn 

Cemetery. 

Special Aviation Fund – To account for revenues and expenses associated with aviation-related 

State funds provided to the City. 

Parking Authority Fund – To account for revenues and expenses associated with operating the 

various parking structures and parking lots owned by the City Parking Authority. 

123



Nonmajor Enterprise Funds 

June 30, 2009 

124 

Total 

Solid 

nonmajor 

Waste Civic Stormwater Special Parking enterprise 

Assets Water Management Pier Auditorium Airport Management Cemetery Aviation Authority funds 


Cash and investments $ 17,496,845 4,062,138 8,177,967 1,628,465 — — — 246,583 9,764,285 41,376,283 

Restricted cash and investments 282,429 6,911,358 260,226 151,853 2,604,739 — — — — 10,210,605 



Accounts 2,349,148 3,129,354 2,402 5,049 169,626 31,183 78,107 — — 5,764,869 

Interest 124,355 73,991 51,565 16,431 19,088 2,532 809 1,594 67,571 357,936 

Inventory 150,210 — — — — — — — — 150,210 

Prepaids 11,329 1,734 — — 1,394 345 — — — 14,802 

Total current assets 20,414,316 14,178,575 8,492,160 1,801,798 2,794,847 34,060 78,916 248,177 9,831,856 57,874,705 


Restricted cash and investments 933,125 — — — — 81,924 — — 300,000 1,315,049 

Due from other governments, restricted — — — — — 534,129 — — — 534,129 

Capital assets: 

Land 21,006 — — — 8 — 4 — 8,135,700 8,156,718 

Buildings 1,654,950 290,585 2,242,456 6,187,997 8,018,906 — 1,499,450 — 946,242 20,840,586 

Improvements other than buildings 992,137 173,736 4,456,986 430,780 12,558,166 147,299 204,936 509,940 169,306 19,643,286 

Machinery and equipment 1,895,192 481,532 289,427 1,933,985 478,617 35,750 385,442 275,000 7,237 5,782,182 

Infrastructure 36,450,510 — 8,213,438 — — 10,739,803 — — — 55,403,751 

Construction in progress 107,655 699,556 2,796,248 — — — — — 26,857 3,630,316 

41,121,450 1,645,409 17,998,555 8,552,762 21,055,697 10,922,852 2,089,832 784,940 9,285,342 113,456,839 

Less accumulated depreciation (21,585,501) (786,783) (9,185,638) (5,226,014) (13,989,103) (2,045,863) (1,190,121) (784,940) (340,114) (55,134,077) 

Net capital assets 19,535,949 858,626 8,812,917 3,326,748 7,066,594 8,876,989 899,711 — 8,945,228 58,322,762 

Total noncurrent assets 20,469,074 858,626 8,812,917 3,326,748 7,066,594 9,493,042 899,711 — 9,245,228 60,171,940 

Total assets $ 40,883,390 15,037,201 17,305,077 5,128,546 9,861,441 9,527,102 978,627 248,177 19,077,084 118,046,645 

(Continued)


Statement of Net Assets, Continued 


June 30, 2009 

125 

Total 

Solid 

nonmajor 


Liabilities Water Management Pier Auditorium Airport Management Cemetery Aviation Authority funds 

s 


Accounts payable $ 1,124,278 428,204 528,892 41,372 143,871 — 48,097 — 49,603 2,364,317 

Accrued liabilities 298,994 448,151 91,454 145,852 78,820 — 42,002 — 210 1,105,483 

Contracts payable (retained percentage) — — 227,358 — — — — — 135,879 363,237 

Interest payable — — — — — 26,511 — — — 26,511 

Due to other funds — — — — — 1,258,489 118,065 — — 1,376,554 

Current portion of long-term obligations — — — — 22,218 243,790 — — — 266,008 

Liabilities payable from restricted assets - 

deposits 153,064 6,911,358 260,226 — 352,952 — — — — 7,677,600 

Total current liabilities 1,576,336 7,787,713 1,107,930 187,224 597,861 1,528,790 208,164 — 185,692 13,179,710 


Accrued liabilities 205,048 189,443 52,951 45,988 40,624 — 12,067 — — 546,121 

Advances from other funds — — — — 9,519,786 — 3,166,074 — — 12,685,860 

Deferred revenue — — 262,245 — — — — — — 262,245 

Long-term obligations, net of current portion — — — — 22,218 2,815,182 — — — 2,837,400 

Total noncurrent liabilities 205,048 189,443 315,196 45,988 9,582,628 2,815,182 3,178,141 — — 16,331,626 

Total liabilities 1,781,384 7,977,156 1,423,126 233,212 10,180,489 4,343,972 3,386,305 — 185,692 29,511,336 

Net Assets 

Invested in capital assets, net of related debt 19,535,949 858,626 8,812,917 3,326,748 7,022,158 5,818,017 899,711 — 8,945,228 55,219,354 

Unrestricted 19,566,057 6,201,419 7,069,034 1,568,586 (7,341,206) (634,887) (3,307,389) 248,177 9,946,164 33,315,955 

Total net assets $ 39,102,006 7,060,045 15,881,951 4,895,334 (319,048) 5,183,130 (2,407,678) 248,177 18,891,392 88,535,309






126 

Total 

Solid 

nonmajor 


Water Management Pier Auditorium Airport Management Cemetery Aviation Authority funds 

Operating revenues: 

Charges for services $ 15,774,047 21,631,313 3,518,145 2,975,749 3,989,851 1,885,142 1,009,595 — 149,200 50,933,042 


Personnel services 4,838,684 8,122,848 1,697,475 2,397,505 1,214,737 — 686,050 — 810 18,958,109 

Administrative indirect 1,121,766 845,676 253,219 186,565 817,762 4,246 284,428 — — 3,513,662 

Contractual services 326,068 4,353,333 1,335,138 78,420 780,105 10,502 450,838 — — 7,334,404 

Repairs and maintenance 182,621 2,515,090 294,316 99,698 357,058 — 62,239 — — 3,511,022 

Materials and supplies 3,421,549 1,482,173 294,002 540,521 515,449 171,786 218,659 — 1,494,958 8,139,097 

Utilities 499,324 57,503 158,545 156,022 174,081 — 85,701 — — 1,131,176 

Water purchases 3,501,575 — — — — — — — — 3,501,575 

Casualty, property and liability costs 133,700 533,200 168,300 133,400 78,600 — 46,300 — — 1,093,500 

Depreciation 1,097,832 9,429 319,873 331,295 677,508 301,816 122,581 28,904 22,022 2,911,260 

Other 673,943 1,363,898 726,714 11,107 711,177 80,797 3,383 — — 3,571,019 

Total operating expenses 15,797,062 19,283,150 5,247,582 3,934,533 5,326,477 569,147 1,960,179 28,904 1,517,790 53,664,824 

Operating income (loss) (23,015) 2,348,163 (1,729,437) (958,784) (1,336,626) 1,315,995 (950,584) (28,904) (1,368,590) (2,731,782) 

Nonoperating revenues (expenses): 

Investment income 640,277 354,379 261,826 74,045 97,220 570 1,515 8,420 353,830 1,792,082 

Interest expense (4,049) — — — (432,773) (83,652) — — — (520,474) 

Loss on disposal of capital assets (146,928) (3,640) (1) (7,828) (1) (68,929) (3,996) — (80,975) (312,298) 

Other 536,499 578,840 64,409 39,513 204,923 (66,277) 9,877 — — 1,367,784 

Total nonoperating revenues 1,025,799 929,579 326,234 105,730 (130,631) (218,288) 7,396 8,420 272,855 2,327,094 

Income (loss) before capital 

contributions and transfers 1,002,784 3,277,742 (1,403,203) (853,054) (1,467,257) 1,097,707 (943,188) (20,484) (1,095,735) (404,688) 

Transfers in 236,993 — 3,713,585 254,782 48,000 14,190 307,083 — 3,669,878 8,244,511 

Transfers out (1,450,150) (690,520) (17,200) — — (1,865,331) — — (4,669,194) (8,692,395) 

Change in net assets (210,373) 2,587,222 2,293,182 (598,272) (1,419,257) (753,434) (636,105) (20,484) (2,095,051) (852,572) 

Total net assets (deficit) 

at beginning of year 39,312,379 4,472,823 13,588,769 5,493,606 1,100,209 5,936,564 (1,771,573) 268,661 20,986,443 89,387,881 

Total net assets (deficit) 

at end of year $ 39,102,006 7,060,045 15,881,951 4,895,334 (319,048) 5,183,130 (2,407,678) 248,177 18,891,392 88,535,309





127 

Total 

Solid 

nonmajor 




Cash received from customers $ 15,935,816 21,441,396 3,536,886 2,753,229 4,018,256 1,899,819 1,034,730 — 149,200 50,769,332 

Cash payments for materials and services (10,267,058) (10,897,848) (2,449,241) (1,270,366) (3,681,727) (287,527) (1,189,441) — (1,350,187) (31,393,395) 

Cash payments to employees for services (4,856,071) (8,045,112) (1,658,337) (2,390,970) (1,214,752) — (694,155) — (600) (18,859,997) 

Other revenue received 536,499 578,840 64,409 39,513 204,923 (66,277) 9,877 — — 1,367,784 


operating activities 1,349,186 3,077,276 (506,283) (868,594) (673,300) 1,546,015 (838,989) — (1,201,587) 1,883,724 


Repayment of advances made to other funds — — — — 520,298 — — — — 520,298 

Advances from other funds — — — — — 1,258,489 340,773 — — 1,599,262 

Transfers in 236,993 — 3,713,585 254,782 48,000 14,190 307,083 — 3,669,878 8,244,511 

Transfers out (1,450,150) (690,520) (17,200) — — (1,865,331) — — (4,669,194) (8,692,395) 


noncapital financing activities (1,213,157) (690,520) 3,696,385 254,782 568,298 (592,652) 647,856 — (999,316) 1,671,676 

Cash flows from capital and related financing 

activities: 

Acquisition and construction of capital assets (52,872) (41,010) (2,399,358) (265,367) — (336,431) (43,310) — — (3,138,348) 

Proceeds from the sale of capital assets — — — 1,016 1 — 23 — 203,001 204,041 

Reduction in long-term obligations — — — — (22,217) (237,613) — — — (259,830) 

Payments due to other goverments — — — — — (534,129) — — — (534,129) 

Interest paid on long-term obligations (4,049) — — — (432,773) (85,711) — — — (522,533) 

Net cash (used in) 

capital and related financing 

(56,921) (41,010) (2,399,358) (264,351) (454,989) (1,193,884) (43,287) — 203,001 (4,250,799) 

Cash flows from investing activities: 

Interest on investments 703,973 381,553 299,519 92,334 111,574 570 3,824 9,281 420,534 2,023,162 

Net cash provided by investing 

activities 703,973 381,553 299,519 92,334 111,574 570 3,824 9,281 420,534 2,023,162 

Net increase (decrease) in cash and 

cash equivalents 783,081 2,727,299 1,090,263 (785,829) (448,417) (239,951) (230,596) 9,281 (1,577,368) 1,327,763 

Cash and cash equivalents at beginning of year 17,929,318 8,246,197 7,347,930 2,566,147 3,053,156 321,875 230,596 237,302 11,641,653 51,574,174 

Cash and cash equivalents at end of year $ 18,712,399 10,973,496 8,438,193 1,780,318 2,604,739 81,924 — 246,583 10,064,285 52,901,937 

Cash and investments $ 17,496,845 4,062,138 8,177,967 1,628,465 — — — 246,583 9,764,285 41,376,283 

Restricted cash and investments 1,215,554 6,911,358 260,226 151,853 2,604,739 81,924 — — 300,000 11,525,654 

Total cash and cash equivalents $ 18,712,399 10,973,496 8,438,193 1,780,318 2,604,739 81,924 — 246,583 10,064,285 52,901,937 

(Continued)



Nonmajor Enterprise Funds, Continued 


128 

Total 

Solid 

nonmajor 



Reconciliation of operating income (loss) to net 


Operating income (loss) $ (23,015) 2,348,163 (1,729,437) (958,784) (1,336,626) 1,315,995 (950,584) (28,904) (1,368,590) (2,731,782) 

Adjustments to reconcile operating income 

(loss) to net cash provided by (used in) 

operating activities: 

Add depreciation 1,097,832 9,429 319,873 331,295 677,508 301,816 122,581 28,904 22,022 2,911,260 


(Increase) decrease in accounts 

receivable 161,769 (189,917) 18,741 3,900 28,405 14,677 25,135 — — 62,710 

(Increase) in prepaids (3,819) (1,734) — — (1,394) (345) — — — (7,292) 

(Increase) in inventory 270,839 — — — — — — — — 270,839 

Increase (decrease) in accounts 

payable (500,250) 9,400 341,006 (38,013) (216,309) (19,851) (37,893) — 8,892 (453,018) 

Increase (decrease) in deferred 

revenue — — 262,245 — — — — — — 262,245 

(Decrease) in accrued 

current liabilities (12,204) 67,235 37,100 (18,649) (10,362) — 54 — 210 63,384 

Increase (decrease) in deposits (124,944) 245,359 (33,533) (226,420) (29,792) — — — — (169,330) 

Increase (decrease) in contracts 

payable (48,338) — 211,275 (26,620) — — — — 135,879 272,196 

Increase in accrued 

noncurrent liabilities (5,183) 10,501 2,038 25,184 10,347 — (8,159) — — 34,728 

Other nonoperating revenue received 536,499 578,840 64,409 39,513 204,923 (66,277) 9,877 — — 1,367,784 

Total adjustments 1,372,201 729,113 1,223,154 90,190 663,326 230,020 111,595 28,904 167,003 4,615,506 


operating activities $ 1,349,186 3,077,276 (506,283) (868,594) (673,300) 1,546,015 (838,989) — (1,201,587) 1,883,724 

There were no significant noncash capital financing or investing activities for the year ended June 30, 2009.


Internal Service Fund Financial Statements 

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

department or agency to other departments or agencies of the City or to other governments, on a costreimbursement 

basis. 

Vehicle Management Fund – To account for user charges from other funds and expenses related 

to the replacement, maintenance and the fueling of various City vehicles, including specialized 

mechanical equipment. 

Information Technology Replacement and Services Fund – To account for user charges from 

other funds and expenses related to replacement of computer equipment. 

Self-Insurance, Comprehensive Fund – To account for user charges from other funds and 

expenses related to the administration and payment of general liability claims. 

Self-Insurance, Bus Fund – To account for user charges from the Big Blue Bus Fund and 

expenses related to the administration and payment of municipal bus lines liability claims. 

Self-Insurance, Auto Fund – To account for user charges from other funds and expenses related 

to the administration and payment of automobile liability claims. 

Self-Insurance, Workers' Compensation Fund – To account for user charges from other funds 

and expenses related to the administration and payment of workers' compensation claims. 

129



All Internal Service Funds 

June 30, 2009 

Information 

Total 

Technology Self-Insurance Self-Insurance internal 

Vehicle Replacement Compre- Self-Insurance Self-Insurance Workers’ service 

Assets Management and Services hensive Bus Auto Compensation funds 


Cash and investments $ 27,129,675 4,405,418 8,578,803 2,077,463 1,888,331 25,263,817 69,343,507 

Receivables: 

Accounts 28,863 — — — 2,408 — 31,271 

Interest 153,160 29,423 33,479 14,343 11,607 166,445 408,457 

Inventory 52,219 — — — — — 52,219 

Total current assets 27,363,917 4,434,841 8,612,282 2,091,806 1,902,346 25,430,262 69,835,454 

130 


Capital assets: 

Machinery and equipment 32,728,476 1,967,644 2,849 7,386 919 10,065 34,717,339 

Construction in progress 100,040 — — — — — 100,040 

Less accumulated depreciation (19,144,736) (1,139,667) (2,849) (7,386) 

— 

(919) (10,065) (20,305,622) 

Net capital assets 13,683,780 827,977 — — — — 14,511,757 

Total assets 41,047,697 5,262,818 8,612,282 2,091,806 1,902,346 25,430,262 84,347,211 

Liabilities 


Accounts payable 331,735 104,455 8,514 100,031 12,472 4,224 561,431 

Accrued liabilities 129,838 — — — — 69,390 199,228 

Claims payable — — 1,498,463 1,938,009 103,062 5,411,498 8,951,032 

Total current liabilities 461,573 104,455 1,506,977 2,038,040 115,534 5,485,112 9,711,691 


Accrued liabilities 97,972 — — — — 73,735 171,707 

Claims payable — — 2,135,999 968,414 67,872 16,730,387 19,902,672 

Total noncurrent liabilities 97,972 — 2,135,999 968,414 67,872 16,804,122 20,074,379 

Total liabilities 559,545 104,455 3,642,976 3,006,454 183,406 22,289,234 29,786,070 

Net assets 

Net assets (deficit) 

Invested in capital assets 13,683,780 827,977 — — — — 14,511,757 

Unrestricted 26,804,372 4,330,386 4,969,306 (914,648) 1,718,940 3,141,028 40,049,384 

Total net assets $ 40,488,152 5,158,363 4,969,306 (914,648) 1,718,940 3,141,028 54,561,141






131 

Information 

Total 



Management and Services hensive Bus Auto Compensation funds 

Operating revenues – charges for services $ 9,015,808 1,859,495 5,808,904 1,871,600 745,193 6,772,590 

— 

26,073,590 


Personnel services 2,659,769 — — — — 1,237,083 3,896,852 

Administrative indirect 507,955 — — — — — 507,955 

Contractual services 55,490 — — — — — 55,490 

Repairs and maintenance 1,825,465 — — — — — 1,825,465 

Materials and supplies 609,754 1,744,621 — — — 20,370 2,374,745 

Utilities 80,624 — — — — 2,084 82,708 

Casualty and liabilities 52,700 — — — — — 52,700 

Claims expense, net of claims reserve 

adjustments — — 1,241,015 2,344,914 362,644 7,772,027 11,720,600 

Insurance and bonds — — 2,419,752 283,243 18,020 337,116 3,058,131 

Miscellaneous fees and costs 319,015 — 257,004 190,564 49,066 190,798 1,006,447 

Administrative fees — — 25,220 7,280 3,640 183,622 219,762 

Depreciation 2,560,513 252,104 — — — — 2,812,617 

Total operating expenses 8,671,285 1,996,725 3,942,991 2,826,001 433,370 9,743,100 27,613,472 

Operating income (loss) 344,523 (137,230) 1,865,913 (954,401) 311,823 (2,970,510) (1,539,882) 

Nonoperating revenues: 

Investment income 925,562 161,246 202,625 72,784 60,616 871,693 2,294,526 

Gain or (loss) on disposal of capital assets 7,416 (514) — — — — 6,902 

Other revenue 38,997 — 257 — — 34,353 73,607 

Total nonoperating revenues 971,975 160,732 202,882 72,784 60,616 906,046 2,375,035 

Income (loss) before operating 

transfers 1,316,498 23,502 2,068,795 (881,617) 372,439 (2,064,464) 835,153 

Transfers in — — — — — 691,800 691,800 

Transfers out — — (317,000) (275,000) (99,800) — (691,800) 

Change in net assets 1,316,498 23,502 1,751,795 (1,156,617) 272,639 (1,372,664) 835,153 

Net assets at beginning of year 39,171,654 5,134,861 3,217,511 241,969 1,446,301 4,513,692 53,725,988 

Total net assets (deficit) at 

end of year $ 40,488,152 5,158,363 4,969,306 (914,648) 1,718,940 3,141,028 54,561,141





132 

Information 

Total 



Management and Services hensive Bus Auto Compensation funds 


Cash received from customers $ 9,064,153 1,861,426 5,808,904 1,871,600 745,193 6,772,607 26,123,883 

Cash payments for materials and services (3,308,124) (1,764,651) (2,701,324) (404,267) (76,066) (759,073) (9,013,505) 

Cash payments for claims and related expenses — — (1,836,332) (1,379,129) (426,965) (6,265,329) (9,907,755) 

Cash payments to employees for services (2,659,769) — — — — (1,307,700) (3,967,469) 

Other nonoperating revenue received 38,997 — 257 — — 34,353 73,607 

Net cash provided by (used in) operating activities 3,135,257 96,775 1,271,505 88,204 242,162 (1,525,142) 3,308,761 


Transfers in — — — — — 691,800 691,800 

Transfers out — — (317,000) (275,000) (99,800) — (691,800) 

Net cash provided by (used in) noncapital financing activities — — (317,000) (275,000) (99,800) 691,800 — 

Cash flows from capital and related financing activities: 

Acquisition and construction of capital assets (3,228,432) (455,140) — — — — (3,683,572) 

Proceeds from sale of capital assets 108,699 — — — — — 108,699 

Net cash used in capital and related financing activities (3,119,733) (455,140) — — — — (3,574,873) 

Cash flows from investing activities – interest on investments 996,874 176,175 240,873 83,775 63,731 966,703 2,528,131 

Net increase (decrease) in cash and cash equivalents 1,012,398 (182,190) 1,195,378 (103,021) 206,093 133,361 2,262,019 

Cash and cash equivalents at beginning of year 26,117,277 4,587,608 7,383,425 2,180,484 1,682,238 25,130,456 67,081,488 

Cash and cash equivalents at end of year $ 27,129,675 4,405,418 8,578,803 2,077,463 1,888,331 25,263,817 69,343,507 

Cash and investments 27,129,675 4,405,418 8,578,803 2,077,463 1,888,331 25,263,817 69,343,507 

Total cash and cash equivalents 27,129,675 4,405,418 8,578,803 2,077,463 1,888,331 25,263,817 69,343,507 

Reconciliation of operating income (loss) to net cash 

provided by (used in) operating activities: 

Operating income (loss) $ 344,523 (137,230) 1,865,913 (954,401) 311,823 (2,970,510) (1,539,882) 

Adjustments to reconcile operating income (loss) to net 


Add depreciation 2,560,513 252,104 — — — — 2,812,617 


(Increase) in accounts receivable 48,345 1,931 — — — 17 50,293 

(Increase) in prepaids — — 16,192 — — 10,104 26,296 

Decrease in inventories 15,252 — — — — — 15,252 

Increase (decrease) in accounts payable 73,474 (20,030) 652 76,820 (5,340) (35,187) 90,389 

Increase in accrued liabilities 54,153 — — — — (70,617) (16,464) 

(Decrease) in claims payable — — (611,509) 965,785 (64,321) 1,506,698 1,796,653 

Other nonoperating revenue received 38,997 — 257 — — 34,353 73,607 

Total adjustments 2,790,734 234,005 (594,408) 1,042,605 (69,661) 1,445,368 4,848,643 

Net cash provided by (used in) operating activities $ 3,135,257 

96,775 1,271,505 88,204 242,162 (1,525,142) 3,308,761 

There were no significant noncash capital financing or investing activities for the year ended June 30, 2009.


Fiduciary Fund Financial Statements 

Agency Funds are custodial in nature and used to receive and disburse funds for an entity/individual, 

which is not part of the City. 

General Trust Fund - To account for funds given to the City for restricted purposes whereby the 

City is only acting as a pass-through agent. 

Street Light Fund - To account for all receipts and disbursements associated with 1911 Act 

Street Light Assessment Bonds. 

133


Combining Statement of Fiduciary Assets and Liabilities 


June 30, 2009 

Agency Funds 

General Street 

Trust Light Totals 

Restricted cash and investments $ 3,883,861 12,338 3,896,199 

Accounts receivable 49,861 — 49,861 

Total assets $ 3,933,722 12,338 3,946,060 

Accounts payable and accrued liabilities $ 3,933,722 12,338 3,946,060 

Total liabilities $ 3,933,722 12,338 3,946,060 

134


Combining Statement of Changes in Fiduciary Assets and Liabilities 



Agency Funds: 

General Trust 

Assets: 

Year ended 

Year ended 

June 30, 2008 Additions Reductions June 30, 2009 

Restricted cash and investments $ 3,756,215 58,926,557 58,798,911 3,883,861 

Accounts receivable 26,485 144,195 120,819 49,861 

Total assets $ 3,782,700 59,070,752 58,919,730 3,933,722 

Liabilities: 

Accounts payable $ 3,782,700 116,787,525 116,636,503 3,933,722 

Total liabilities $ 3,782,700 116,787,525 116,636,503 3,933,722 

80.201137 

80.201145 

80.201163 

80.201164 

Street Light 80.201165 

Assets: 80.201166 

Restricted cash and investments $ 4,815 

38,162 30,639 12,338 

Total assets $ 4,815 

38,162 30,639 12,338 

80.201199 

Liabilities: 80.201224 

Accounts payable $ 4,815 

38,562 31,039 12,338 

Total liabilities $ 4,815 

38,562 31,039 12,338 

80.201232 

80.201234 

80.201235 

80.201237 

Total Fiduciary Funds 80.201241 

Assets: 80.201244 

Restricted cash and investments $ 3,761,030 58,964,719 58,829,550 3,896,199 

Accounts Receivable 26,485 144,195 120,819 49,861 

Total assets $ 3,787,515 59,108,914 58,950,369 3,946,060 

Liabilities: 

Accounts payable $ 3,787,515 116,826,087 116,667,542 3,946,060 

Total liabilities $ 3,787,515 116,826,087 116,667,542 3,946,060 

80.201252 

Total A/P 80 Fd 

801.201181 

135


136



STATISTICAL SECTION (unaudited) 

Table 

Financial Trends Information 

These schedules contain trend information to help the reader understand how the 

government's financial performance and well-being have changed over time. 

Page 

1 Net Assets by Component - Last Eight Fiscal Years 139 

2 Changes in Net Assets - Last Eight Fiscal Years 140 

3 Fund Balance of Governmental Funds - Last Ten Fiscal Years 143 

4 Changes in Fund Balance of Governmental Funds - Last Ten Fiscal Years 144 

5 General Fund Tax Revenues by Source - Last Five Fiscal Years 146 

Revenue Capacity Information 

These schedules contain information to help the reader assess the government's most 

significant local revenue source, the property tax. 

6 Assessed Value and Actual Value of Taxable Property - Last Ten Fiscal Years 147 

7 Direct and Overlapping Property Tax Rates - Last Ten Fiscal Years 148 

8 Principal Property Taxpayers - Current Fiscal Year and Ten Years Ago 149 

9 Property Tax Levies and Collections - Last Ten Fiscal Years 150 

10 Taxable Transactions by Type of Business - Last Five Calendar Years 151 

Debt Capacity Information 

These schedules present information to help the reader assess the affordability of the 

government's current levels of outstanding debt and government's ability to issue additional 

debt in the future. 

11 Ratios of Outstanding Debt by Type - Last Ten Fiscal Years 152 

12 Ratios of General Bonded Debt - Last Ten Fiscal Years 153 

13 Direct and Overlapping Governmental Activities Debt as of June 30, 2009 154 

14 Computation of Legal Debt Margin - Last Ten Fiscal Years 155 

15 Wastewater Enterprise Revenue Bonds Coverage 156 

16 Redevelopment Agency Earthquake Recovery Project Tax Allocation Bonds Coverage 157 

17 Redevelopment Agency Ocean Park Project Tax Allocation Refunding Bonds Coverage 158 

137



STATISTICAL SECTION (unaudited), continued 

Table 

Demographic and Economic Information 

These schedules offer demographic and economic indicators to help the reader understand the 

environment within which the government's financial activities take place. 

Page 

18 Demographic and Economic Statistics - Last Ten Calendar Years 159 

19 Principal Employers - Current Year and Nine Years Ago 160 

Operating Information 

These schedules contain service and infrastructure data to help the reader understand how the 

information in the government's financial report relates to the services the government 

provides and activities it performs. 

20 Full Time Equivalent City Government Employees by Function/Program - 

Last Six Fiscal Year 

21 Operating Indicators by Function/Program - Last Four Fiscal Years 162 

22 Capital Assets Statistics by Function/Program - Last Four Fiscal Years 163 

161 

138


Net Assets by Component 

Last Eight Fiscal Years 

(Accrual Basis of Accounting) 

TABLE 1 

2008-09 2007-08 2006-07 * 2005-06 * 2004-05 * 2003-04 * 2002-03 2001-02 


Invested in capital assets, net of related debt $ 579,367,093 573,971,975 506,307,676 481,678,996 165,893,160 162,528,406 193,302,132 171,822,670 

Restricted 187,103,831 232,281,102 273,104,503 196,818,353 200,744,882 185,632,392 123,983,319 125,209,908 

Unrestricted 242,542,375 209,438,522 243,036,538 230,154,215 223,451,608 203,446,595 146,779,333 118,965,470 

Total governmental activities net assets $ 1,009,013,299 1,015,691,599 1,022,448,717 908,651,564 590,089,650 551,607,393 464,064,784 415,998,048 



Restricted 1,661,758 1,625,057 2,503,448 37,365,926 34,846,062 34,145,541 33,703,216 32,998,908 

Unrestricted 112,067,386 104,955,422 114,601,165 129,288,372 100,528,572 109,303,814 107,105,633 111,275,562 

Total business-type activities net assets $ 531,886,681 495,989,994 491,703,222 490,762,944 401,587,264 399,057,347 357,950,977 343,127,005 

139 

Primary government 


Restricted 188,765,589 233,906,159 275,607,951 234,184,279 235,590,944 219,777,933 157,686,535 158,208,816 

Unrestricted 354,609,761 314,393,944 357,637,703 359,442,587 323,980,180 312,750,409 253,884,966 230,241,032 

Total primary government net assets $ 1,540,899,980 1,511,681,593 1,514,151,939 1,399,414,508 991,676,914 950,664,740 822,015,761 759,125,053 

* Before restatement




TABLE 2 

2008-2009 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 

Expenses 


General government $ 46,670,826 38,849,626 45,323,227 31,288,910 33,648,946 12,218,726 22,203,518 21,322,302 

Public safety 100,709,990 91,862,403 87,830,433 82,886,707 80,300,625 74,489,887 63,496,266 59,229,995 

General services 161,224,085 111,168,586 41,404,237 64,777,602 32,961,058 30,659,648 37,843,832 36,040,609 

Cultural and recreation services 44,031,895 33,776,210 43,646,843 40,022,151 35,163,220 36,958,290 33,896,585 31,594,286 

Library 11,422,789 11,458,259 10,681,518 7,974,534 7,849,658 20,241,923 6,331,445 6,348,239 

Housing and community development 115,827,555 91,966,369 74,988,387 56,708,298 52,223,052 64,079,218 40,512,087 45,432,842 

Other (1) — — 469,285 2,212,186 1,273,607 244,438 422,786 557,009 

Interest on long term debt 7,252,197 7,628,437 7,934,428 7,514,924 9,507,522 8,430,126 7,719,369 6,172,349 

Total governmental activities 487,139,337 386,709,890 312,278,358 293,385,312 252,927,688 247,322,256 212,425,888 206,697,631 

140 


Water 15,958,328 15,489,230 14,830,595 13,855,863 17,564,916 16,382,688 13,636,722 13,831,274 

Solid waste management 19,219,079 16,277,710 18,630,141 17,459,310 16,550,895 15,933,665 15,022,708 14,666,038 

Pier 5,200,065 4,867,415 9,485,709 7,544,001 6,922,305 8,079,003 6,108,337 6,078,956 

Wastewater 19,603,411 20,063,420 19,579,035 19,008,944 14,755,836 14,013,170 15,652,716 13,056,831 

Civic auditorium 3,933,159 3,718,652 3,535,624 2,898,853 3,129,521 2,741,857 2,839,311 2,932,981 

Airport 5,737,927 5,199,701 5,325,190 3,882,639 3,845,108 3,845,116 3,675,501 3,922,749 

Storm water management 721,728 474,683 502,183 648,374 966,897 403,294 374,866 365,634 

Cemetery 1,956,609 1,715,605 1,481,238 989,274 1,243,343 1,137,698 1,066,434 1,140,900 

Big Blue Bus 70,855,809 65,185,007 59,627,736 59,180,481 52,021,645 47,265,202 44,543,108 39,979,131 

Cable communications (2) — — — — 1,340,120 932,823 883,657 875,316 

Special aviation 28,904 18,333 69,374 52,329 52,329 52,329 52,329 52,329 

Parking authority 1,598,765 349,576 709,982 16,189 202,794 337,552 558,058 545,352 

Total business-type activities 144,813,784 133,359,332 133,776,807 125,536,257 118,595,709 111,124,397 104,413,747 97,447,491 

Total primary governmental activities expenses 631,953,121 520,069,222 446,055,165 418,921,569 371,523,397 358,446,653 316,839,635 304,145,122 

Program revenues 


Charges for services: 

General government 19,198,345 17,188,876 17,326,675 12,567,222 10,854,382 7,005,002 6,576,292 5,448,469 

Public safety 17,064,322 17,298,741 17,202,256 15,754,085 15,840,756 15,671,730 12,463,506 10,658,978 

General services 20,291,439 19,650,237 18,841,288 17,880,336 15,776,086 15,105,283 11,130,386 1,418,980 

Cultural and recreation services 10,608,948 9,492,174 9,002,084 8,556,557 8,147,054 (3) 7,842,184 6,763,867 6,151,835 

Library 410,908 363,987 349,139 232,025 173,864 178,555 276,812 298,581 

Housing and community development 12,416,654 14,430,326 13,925,980 12,553,269 12,193,457 13,478,114 8,647,389 3,753,717 

Operating grants and contributions 30,164,300 34,803,655 28,362,525 25,133,124 26,063,799 31,705,184 28,720,949 13,917,213 

Capital grants and contributions 20,379,864 4,862,387 4,839,925 5,838,885 612,985 1,500,466 17,365,486 14,549,774 

Total governmental activities program revenues 130,534,780 118,090,383 109,849,872 98,515,503 89,662,383 92,486,518 91,944,687 56,197,547 

(continues next page)




TABLE 2 

(continues from previous page) 

2008-2009 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 


Charges for services: 

Water 15,774,047 16,130,044 15,323,653 13,868,390 13,113,058 13,110,498 13,636,278 12,413,133 

Solid waste management 21,631,313 18,842,702 18,766,107 17,097,813 15,704,667 14,598,362 14,622,424 13,252,431 

Pier 3,518,145 3,107,349 3,081,338 2,693,200 2,717,162 2,563,783 2,275,873 2,339,948 

Wastewater 13,751,588 12,797,786 12,472,073 11,175,051 11,376,456 11,004,692 10,768,475 9,877,135 

Civic auditorium 2,975,749 3,117,033 2,789,196 2,608,759 2,474,609 2,279,508 2,229,724 2,225,713 

Airport 3,989,851 4,279,268 3,992,190 3,862,455 3,706,719 3,527,460 2,962,153 2,705,373 

Storm water management 1,885,142 1,301,350 1,376,672 1,610,715 1,439,149 1,355,903 1,825,026 2,741,931 

Cemetery 1,009,595 1,080,532 735,718 665,398 650,484 445,327 396,638 686,153 

Big Blue Bus 14,391,300 13,898,980 13,078,630 13,333,584 11,298,250 12,190,925 11,903,989 10,129,564 

Cable communications (2) — — — — 798,984 747,063 664,318 490,471 

Parking authority 149,200 145,600 141,600 138,100 1,612,705 1,457,952 1,370,445 1,221,853 

141 

Operating grants and contributions 34,203,607 32,188,569 31,723,528 32,297,732 29,638,114 24,671,943 22,455,902 20,782,963 

Capital grants and contributions 53,209,039 20,030,403 12,185,518 19,061,484 17,318,761 7,943,966 26,497,439 22,614,054 

Business-type activities program revenues 166,488,576 126,919,616 115,666,223 118,412,681 111,849,118 95,897,382 111,608,684 101,480,722 

Total primary government program revenues 297,023,356 245,009,999 225,516,095 216,928,184 201,511,501 188,383,900 203,553,371 157,678,269 

Net (expense): 

Governmental activities (356,604,557) (268,619,507) (202,428,486) (194,869,809) (163,265,305) (154,835,738) (120,481,201) (150,500,084) 

Business-type activities 21,674,792 (6,439,716) (18,110,584) (7,123,576) (6,746,591) (15,227,015) 7,194,937 4,033,231 

Total primary government net expense (334,929,765) (275,059,223) (220,539,070) (201,993,385) (170,011,896) (170,062,753) (113,286,264) (146,466,853) 

General Revenues and Other changes 

in Net Assets 


Taxes: 

Business 28,821,688 26,211,226 24,232,707 21,775,442 20,384,372 19,249,942 18,963,761 32,574,841 

Property 107,255,345 101,323,706 89,845,591 79,951,933 64,667,456 58,267,374 50,562,134 47,446,878 

Sales 28,296,696 32,356,941 33,267,253 31,871,593 27,579,776 27,825,098 25,235,982 24,586,014 

Other 76,146,388 81,762,203 77,036,651 71,788,854 67,203,194 65,196,019 60,661,614 61,092,973 

Settlement income 89,910,872 1,012,863 69,153,512 6,453,804 4,545,498 73,978,421 — — 

Other income 9,128,899 8,428,266 6,213,329 9,638,813 4,838,074 4,713,695 6,284,767 9,603,004 

Investment earnings 16,198,386 22,021,977 25,505,798 11,995,355 10,289,600 3,645,712 5,737,648 26,130,810 

Transfers (5,832,017) (2,815,040) (9,029,202) (8,394,702) (4,773,908) (9,257,834) (2,812,169) (27,454,859) 

Total governmental activities 349,926,257 270,302,142 316,225,639 225,081,092 194,734,062 243,618,427 164,633,737 173,979,661 





TABLE 2 


2008-2009 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 


Other income 4,162,283 3,421,837 4,111,407 6,028,516 3,352,205 4,239,895 2,592,307 3,654,116 

Investment earnings 4,227,595 4,489,611 7,439,759 2,673,080 4,007,045 2,090,273 2,224,559 7,697,118 

Transfers 5,832,017 2,815,040 9,029,202 8,394,702 4,773,908 9,257,834 2,812,169 27,454,859 

Total business-type activities 14,221,895 10,726,488 20,580,368 17,096,298 12,133,158 15,588,002 7,629,035 38,806,093 

Total primary government 29,218,387 5,969,407 116,266,937 40,184,005 36,855,324 89,143,676 58,976,508 66,318,901 

Changes in net assets 

Governmental activities (6,678,300) 1,682,635 113,797,153 30,211,283 31,468,757 88,782,689 44,152,536 23,479,577 

Business-type activities 35,896,687 4,286,772 2,469,784 9,972,722 5,386,567 360,987 14,823,972 42,839,324 

Total primary government $ 29,218,387 5,969,407 116,266,937 40,184,005 36,855,324 89,143,676 58,976,508 66,318,901 

(1) Other expenses allocated to programs in FY 07-08. 

(2) Cable communications became a division of the City Managers Office in FY 05-06. 

142 

(3) $3,562 previously presented as Other.


Fund Balance of Governmental Funds 

Last Ten Fiscal Years 

(Modified Accrual Basis of Accounting) 

TABLE 3 

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 

General Fund 

Reserved $ 41,432,273 81,056,800 91,843,183 97,044,588 116,386,390 112,721,556 138,058,223 118,287,162 144,233,412 136,030,173 

Unreserved 155,521,957 67,745,079 63,826,421 55,923,644 52,350,429 62,244,592 44,338,729 49,166,752 35,977,083 42,995,083 

Total General Fund $ 196,954,230 148,801,879 155,669,604 152,968,232 168,736,819 174,966,148 182,396,952 167,453,914 180,210,495 179,025,256 

All other governmental funds 

Reserved $ 134,770,865 217,888,723 314,507,732 229,263,232 224,211,709 202,305,246 128,107,698 127,715,809 111,068,051 64,453,523 

Unreserved, reported in: 

Special revenue funds 42,902,430 67,387,055 11,027,475 5,569,484 7,883,995 5,119,597 19,763,099 15,983,739 12,966,034 7,798,699 

Capital project funds 66,021,140 (7,937,337) (5,053,769) (10,434,018) (20,392,300) (21,413,949) (24,171,070) (28,013,662) (34,129,673) (14,625,444) 

Total all other government funds $ 243,694,435 277,338,441 320,481,438 224,398,698 211,703,404 186,010,894 123,699,727 115,685,886 89,904,412 57,626,778 

143


Changes in Fund Balance of Governmental Funds 



TABLE 4 

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 

Revenues 

Property taxes $ 36,763,026 36,067,632 32,586,134 28,031,618 25,650,975 24,389,651 20,205,578 17,511,845 16,791,606 15,316,818 

Incremental property taxes 71,289,749 66,148,046 58,163,695 52,818,794 39,866,836 34,653,601 37,650,778 29,935,033 21,429,798 18,964,445 

Sales taxes 28,296,696 32,356,941 33,267,253 31,871,593 27,579,776 27,825,098 25,235,982 24,586,014 26,186,186 24,360,293 

Other taxes 105,639,635 109,556,310 102,870,450 97,203,255 71,083,492 68,077,435 63,369,941 61,092,973 74,934,122 58,853,994 

License and permits 20,398,191 20,203,085 19,232,085 18,378,705 39,361,156 35,662,507 33,315,009 32,574,841 31,351,322 29,344,356 

Intergovernmental 36,408,496 33,007,061 28,948,391 20,020,970 25,481,694 28,562,694 30,893,991 28,466,987 31,557,576 41,350,277 

Charges for services 39,238,389 36,226,643 35,855,124 29,083,568 20,918,458 18,401,113 16,904,889 17,871,631 16,627,486 15,811,394 

Fines and forfeitures 14,113,906 14,567,262 14,191,722 13,101,713 13,332,411 13,344,573 10,742,425 9,858,930 8,539,835 9,000,597 

Investment earnings 15,455,332 21,450,071 24,225,164 11,649,849 10,699,979 4,471,698 6,181,428 25,215,755 20,286,388 17,379,702 

Rental income 5,467,946 7,006,972 7,279,995 6,562,654 8,638,543 7,854,141 7,976,304 — (4) 1,147,886 1,146,076 

Settlement income 4,429,738 1,012,863 69,153,512 6,453,804 4,545,498 73,929,382 — — — — 

Other 28,651,201 16,691,497 8,446,372 9,794,587 4,497,162 5,817,295 7,150,655 10,089,427 37,112,400 13,042,200 

Total revenue 406,152,305 394,294,383 434,219,897 324,971,110 291,655,980 342,989,188 259,626,980 257,203,436 285,964,605 244,570,152 

144 

Expenditures 

General government 45,242,680 38,595,140 37,006,125 33,564,080 29,629,861 23,558,535 21,872,722 21,625,401 17,887,258 18,318,874 

Public safety 96,985,086 89,074,863 87,509,154 82,576,196 80,424,716 64,584,136 77,674,621 77,502,781 60,031,295 50,282,717 

General services 70,963,814 116,628,339 46,537,282 51,793,265 31,005,774 42,228,092 46,117,908 42,328,024 38,688,651 50,461,320 

Cultural and recreation services 53,045,810 46,035,625 49,549,413 44,991,537 59,290,534 38,287,458 35,179,915 37,565,421 27,735,008 29,883,237 

Library 10,099,063 10,245,110 9,454,034 20,759,269 31,443,914 17,844,322 13,002,733 7,385,216 5,948,042 5,940,473 

Retirement (1) — — — — — 13,258,631 7,068,355 4,367,576 7,621,026 8,619,950 

Housing and community development 113,730,249 118,452,727 77,871,025 61,094,984 58,081,802 63,175,791 36,280,489 36,446,926 31,912,393 25,969,624 

Statutory pass throughs (2) — — — — — — 6,577,635 5,142,773 3,393,724 3,250,427 

Other — 2,749,086 609,225 2,189,224 1,087,085 241,524 329,561 349,609 21,257,628 15,996,699 

Capital outlay (3) — — — — — — 13,045,843 6,049,281 26,286,778 68,184,452 

Debt service 

Principal 8,375,000 8,075,000 7,805,000 6,515,000 5,625,000 4,880,000 1,625,000 2,590,000 2,445,000 1,465,000 

Interest 8,386,518 8,941,832 8,206,309 9,947,949 9,572,189 9,401,520 7,644,173 7,982,932 8,409,242 3,376,762 

Bond issuance costs — — — 1,324,281 — — — — — — 

Total expenditures 406,828,220 438,797,722 324,547,567 314,755,785 306,160,875 277,460,009 266,418,955 249,335,940 251,616,045 281,749,535 



Changes in Fund Balance of Governmental Funds 



TABLE 4 


2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 


over (under) expenditures (675,915) (44,503,339) 109,672,330 10,215,325 (14,504,895) 65,529,179 (6,791,975) 7,867,496 34,348,560 (37,179,383) 

145 

Other financing sources (uses) 

Transfers in 91,332,304 46,495,411 24,721,684 24,782,699 30,368,084 23,047,929 22,831,619 23,170,931 16,055,582 13,218,417 

Transfers out (91,633,368) (49,574,857) (33,998,086) (33,501,106) (35,493,072) (32,456,665) (25,790,988) (50,768,690) (18,775,559) (16,643,144) 

Line of credit proceeds 15,485,324 — — — — — — — — — 

Refunding bonds issued — — — 64,720,000 — — — 25,350,000 — — 

Bonds issued — — — — 38,930,000 — 25,000,000 27,395,000 — 76,438,433 

Premium on bonds issued — — — 55,653 163,064 — 80,000 45,805 — 1,184,815 

Discount on bonds issued — — — (187,264) — — — (405,760) — — 

Payments to refunded bond escrow agent — — — (63,213,909) — — — (27,883,554) — — 

Capital leases — — — — — — — — 2,231,362 — 

Total other financing sources (uses) 15,184,260 (3,079,446) (9,276,402) (7,343,927) 33,968,076 (9,408,736) 22,120,631 (3,096,268) (488,615) 74,198,521 

Adjustment to reclassify LT advances from the city — — — — — — — — — — 

Residual equity transfer in — — — — — — — — 6,622,229 255,393 

Residual equity transfer out — — — — — — — — (7,022,229) (5,722,660) 

Net change in fund balance $ 14,508,345 (47,582,785) 100,395,928 2,871,398 19,463,181 56,120,443 15,328,656 4,771,228 33,459,945 31,551,871 

Debt service as a percentage of noncapital 

expenditures 4.54% 4.52% 5.51% 6.59% 6.50% 6.27% 4.37% 5.16% 4.31% 1.72% 

(1) Retirement costs allocated to program areas beginning in FY 2004-05. 

(2) Statutory pass throughs included in housing and community development beginning FY 2003-04. 

(3) Capital outlay included in expenditures beginning in FY 2004-05. 

(4) Rental income included in investment income for FY 2001-02.


General Fund Tax Revenues by Source (1) 

Last Five Fiscal Years 

(In Thousands) 

TABLE 5 

Source 

2008-09 2007-08 2006-07 2005-06 2004-05 

Sales taxes $ 28,297 

32,357 33,267 31,872 27,580 

Utility user's tax 31,579 31,622 31,243 30,044 29,315 

Transient occupancy tax 31,265 34,969 31,892 29,209 23,419 

Property taxes (2) 37,763 36,068 32,586 28,032 25,651 

Business license taxes 27,216 24,654 22,637 20,274 18,970 

Parking facility tax 7,980 7,826 7,400 6,832 6,241 

Real property transfer tax 2,653 4,739 6,409 5,573 7,180 

Vehicle license fees 263 390 608 2,062 975 

Franchise fees (3) — — — — 909 

Condominium taxes 35 50 39 24 24 

Total $ 167,051 172,675 166,081 153,922 140,264 

(1) 

Does not include Highway Users Taxes, which are recorded in the Gas Tax Fund, Unit Dwelling Taxes, which are recorded in 

the Parks and Recreation Facilities Fund, or TORCA Conversion Taxes, which are recorded in the TORCA Fund. 

(2) 

(3) 

Includes ad valorem property taxes for purposes of paying debt service on general obligation bonds. Does not include tax 

increment received by redevelopment area. 

Beginning in FY 2005-06, franchise fees are classified as "Licenses and Permits". 

Source: City of Santa Monica Finance Department 

146


Assessed Value and Actual Value of Taxable Property 


TABLE 6 

Fiscal 

year Land Improvements Personal property 

Public 

utilities Secured gross Exemptions (1) Secured net Net unsecured 

Net assessed 

valuations 

2008-09 $ 13,460,086,702 $ 9,640,424,526 $ 228,270,851 $ 742,365 $ 23,329,524,444 $ 904,660,628 $ 22,424,863,816 $ 987,848,754 $ 23,412,712,570 

2007-08 12,279,875,463 8,581,600,449 230,361,744 742,365 21,092,580,021 847,012,250 20,245,567,771 877,156,158 21,122,723,929 

2006-07 11,307,028,243 8,100,538,705 231,255,829 742,865 19,639,565,642 810,600,441 18,828,965,201 876,645,078 19,705,610,279 

2005-06 10,226,948,142 7,591,414,476 37,240,768 742,865 17,856,346,251 535,704,727 17,320,641,524 777,908,774 18,098,550,298 

147 

2004-05 9,187,366,819 7,004,200,099 25,810,792 3,266,758 16,220,644,468 445,214,530 15,775,429,938 771,454,105 16,546,884,043 

2003-04 8,398,483,440 6,720,989,375 110,879,795 3,076,425 15,233,429,035 458,910,480 14,774,518,555 936,652,394 15,711,170,949 

2002-03 7,743,067,190 6,378,861,320 77,861,370 577,895 14,200,367,775 432,908,920 13,767,458,855 830,892,607 14,598,351,462 

2001-02 6,959,592,062 5,827,878,240 67,180,358 577,895 12,855,228,555 304,310,896 12,550,917,659 940,935,105 13,491,852,764 

2000-01 6,387,678,650 5,382,788,280 26,836,372 577,895 11,797,881,197 335,631,820 11,462,249,377 820,704,082 12,282,953,459 

1999-00 5,827,045,970 4,951,093,680 48,350,204 577,895 10,827,067,749 264,038,252 10,563,029,497 771,996,560 11,335,026,057 

(1) Includes Homeowner Exemption. City is reimbursed by State for taxes lost because of these exemptions. 

Source: Los Angeles County Auditor-Controller


Direct and Overlapping Property Tax Rates* 


TABLE 7 

Fiscal City County School Miscellaneous 

year General Fund General Fund districts special districts Total 

2008-09 $ 0.01 $ 1.00 $ 0.09 $ 0.01 $ 1.11 

2007-08 0.01 1.00 0.10 0.01 1.12 

2006-07 0.01 1.00 0.08 0.01 1.10 

2005-06 0.01 1.00 0.07 0.01 1.09 

2004-05 0.01 1.00 0.06 0.01 1.08 

2003-04 0.02 1.00 0.05 0.01 1.08 

2002-03 0.02 1.00 0.06 0.01 1.09 

2001-02 ** 1.00 0.04 0.01 1.05 

2000-01 ** 100 1.00 004 0.04 001 0.01 105 1.05 

1999-00 0.01 1.00 0.03 0.01 1.05 

* Property tax rate is per $100 of assessed value. Prior to 1981-82, assessed value was 25% of market value. Since 

1981-82, assessed value equals full market value as defined by law. Since 1978-79, the maximum allowable rate is 

levied by the County, property taxes are collected by the County, and the County allocates the City's share in 

accordance with distribution formulas established in law. Effective 1981-82, Proposition 13 allowed jurisdictions to 

impose rates over the $1.00 base rate only for bonded debt approved by the voters prior to 1978. However, in 1986, 

the State Constitution was amended to allow rates over the $1.00 base rate for voter approved general obligation 

bonds. 

City General Fund is allocated approximately $.15 of each $1.00 of the County General Fund amount. 

Redevelopment areas receive approximately $.85 of each $1.00 of the County General Fund portion. 

** City of Santa Monica property tax override for Library General Obligation Bonds was less than $.01, but was 

levied. 

Source: Los Angeles County Auditor-Controller 

148


Principal Property Taxpayers 

Current Fiscal Year and Ten Years Ago 

TABLE 8 

149 

Taxable 

2008-09 

Percentage 

of total City 

taxable 

Taxable 

assessed 

assessed 

assessed 

Taxpayer value Rank value 

value Rank 

California Colorado Center LLC $ 637,500,000 1 2.71 % $ — 

— % 

Water Garden Realty Holding LLC 449,059,983 2 1.91 — — 

SC Enterprises SMBP LLC 310,080,000 3 1.32 88,745,204 5 0.87 

Douglas Emmett Realty Fund 266,103,783 4 1.13 86,855,305 6 0.85 

Sisters of Charity/St. John's Hospital 228,710,571 5 0.97 142,922,533 3 1.40 

CREP 2700 Holdings LLC 222,360,000 6 0.95 — — 

Maguire Properties Lantana North 160,398,262 7 0.68 — — 

Equity Properties Trust 141,279,382 8 0.60 — — 

Ocean Avenue LLC 140,165,769 9 0.60 — — 

New Santa Monica Beach Hotel 135,785,427 8 0.58 — — 

Colorado Place Partners — — 188,000,000 1 1.84 

Water Garden Company — — 150,610,902 2 1.48 

Santa Monica Place Associates — — 98,036,225 4 0.96 

SHCI Santa Monica Beach Hotel — — 72,179,758 7 0.71 

Commerce Way Assoc. Ltd. Partnership — — 53,556,227 8 0.52 

Metro Goldwyn Mayer Studios Inc — — 23,750,115 9 0.23 

Santa Monica Shores — — 17,174,236 10 0.17 

Total principal property taxpayers 

assessed value 2,691,443,177 11.45 921,830,505 9.03 

Total City assessed value $ 23,488,853,129 

100.00 % $ 10,202,640,765 

100.00 % 

1999-00 

Percentage 

of total City 

taxable 

assessed 

value 

Source: City of Santa Monica Finance Department (data from Los Angeles County Assessor)


Property Tax Levies and Collections 


TABLE 9 

Total secured tax 

Outstanding 

Fiscal year 

Total secured tax 

levy 

Current secured 

tax collections 

Percent of levy 

collected 

Delinquent 

secured tax 

collections (1) 

Total tax 

collections 

collections as 

percent of total tax 

levy 

Outstanding 

delinquent taxes 

(2) 

delinquent taxes 

as percent of total 

secured tax levy 

2008-09 $ 22,439,401 $ 21,195,066 94.5 % $ 1,237,357 $ 22,432,423 100.0 % $ 662,983 3.0 % 

2007-08 20,654,045 19,309,774 93.5 528,207 19,837,981 96.0 442,105 2.1 

2006-07 19,352,421 18,418,938 95.2 376,559 18,795,497 97.1 271,740 1.4 

150 

2005-06 18,053,398 17,445,098 96.6 407,334 17,852,432 98.9 248,199 1.4 

2004-05 16,834,761 16,407,407 97.5 416,502 16,823,909 99.9 292,723 1.7 

2003-04 16,674,558 16,235,740 97.4 486,656 16,722,396 100.3 438,818 2.6 

2002-03 15,315,149 14,891,114 97.2 422,693 15,313,807 100.0 420,562 2.7 

2001-02 14,713,556 14,282,425 97.1 412,287 14,694,712 99.9 446,478 3.0 

2000-01 14,040,882 13,614,254 97.0 406,267 14,020,521 99.9 452,974 3.2 

1999-00 13,287,593 12,891,562 97.0 426,560 13,318,122 100.2 442,199 3.3 

(1) Exclusive of penalties and collections related to tax overrides for debt service on general obligation bonds.. 

(2) 

Reflects City of Santa Monica proportionate share of county-wide outstanding delinquencies. City specific statistics are not available from the 

County of Los Angeles. 

Source: County of Los Angeles


Taxable Transactions by Type of Business 

Last Five Calendar Years 

(In Thousands) 

TABLE 10 

Calendar Year 

Business 2008 2007 2006 2005 2004 

Apparel stores $ 311,386 333,651 336,010 329,556 302,756 

General merchandise 51,547 62,818 68,565 75,618 84,334 

Food stores 87,586 85,452 81,477 75,971 67,825 

Eating & drinking places 449,260 452,246 435,807 409,645 374,767 

Building materials & farm implements 110,439 125,718 119,648 103,851 101,540 

Auto dealers & auto suppliers 648,404 715,633 716,162 710,000 691,828 

Service stations 145,869 137,283 132,437 101,214 89,261 

. . . . 

Other retail stores 626,490 689,179 649,123 634,605 613,781 

Retail stores total 2,430,981 2,601,980 2,539,229 2,440,460 2,326,092 

All other outlets 625,884 658,730 724,944 676,497 598,595 

Total all outlets $ 3,056,865 3,260,710 3,264,173 3,116,957 2,924,687 

Source: Hinderleiter, de Llamas and Associates 

151


Ratio of Outstanding Debt by Type 


TABLE 11 

Fiscal 

year 

General 

obligation 

bonds 

Tax allocation 

bonds 


Lease revenue 

bonds 

Term loans 

payable (1) 

Line of Credit 

Wastewater 

bonds 


Certificates of 

participation 

Term loans 

payable 

Capital leases 

Total primary 

government 

Percentage of 

net assessed 

valuation (2) 

Per capita 

2008-09 $ 18,455,000 $ 72,900,000 $ 67,880,000 $ 400,000 $ 15,485,324 $ 25,760,000 $ — $ 3,103,408 $ — $ 203,983,732 

0.87% 2,205 

2007-08 20,140,000 75,570,000 71,900,000 — — 27,260,000 — 3,363,238 — 198,233,238 0.94% 2,168 

2006-07 21,800,000 78,115,000 75,770,000 — — 28,715,000 420,000 3,617,046 — 208,437,046 1.06% 2,287 

2005-06 23,430,000 81,320,000 78,740,000 — — 29,975,000 820,000 3,864,987 — 218,149,987 1.21% 2,404 

2004-05 25,035,000 78,025,000 81,610,000 — — 31,205,000 1,205,000 4,107,207 — 221,187,207 1.34% 2,439 

2003-04 26,615,000 79,975,000 44,775,000 — — 32,335,000 1,570,000 4,343,865 — 189,613,865 1.21% 2,097 

152 

2002-03 28,170,000 81,840,000 46,235,000 — — 33,340,000 1,920,000 4,625,079 — 196,130,079 1.34% 2,195 

2001-02 3,440,000 82,800,000 46,630,000 — — 34,230,000 2,255,000 4,900,995 30,718 174,286,713 1.29% 1,981 

2000-01 3,690,000 73,975,000 31,650,000 — — 35,025,000 2,565,000 5,171,749 2,052,909 154,129,658 1.25% 1,801 

1999-00 3,915,000 75,120,000 20,975,000 — — 35,725,000 2,865,000 5,555,507 — 144,155,507 1.27% 1,714 

Note: 

(1) The State Department of Housing and Urban Development Deferred Payment Rehabilitation Loan Program (DPRLP) granted two $200,000 non-interest bearing loans to the City. 

(2) Net assessed property valuations have been used because personal income is not available. See Table 6 for net assessed valuations. 

Note: See Schedule of Demographic and Economic Statistics on Table 18 for population data.


Ratios of General Bonded Debt 


TABLE 12 

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 

General bonded debt outstanding 

General obligation bonds $ 18,455,000 20,140,000 21,800,000 23,430,000 25,035,000 26,615,000 28,170,000 3,440,000 3,690,000 3,915,000 

Tax allocation bonds 72,900,000 75,570,000 78,115,000 81,320,000 78,025,000 79,975,000 81,840,000 82,800,000 81,080,000 82,895,000 

Total $ 91,355,000 95,710,000 99,915,000 104,750,000 103,060,000 106,590,000 110,010,000 86,240,000 84,770,000 86,810,000 

Assessed value (in thousands) $ 23,488,853 21,122,724 19,705,610 18,098,550 16,546,884 15,711,170 14,598,351 13,491,852 12,282,953 11,335,026 

Percentage of assessed 

property value 0.39% 0.45% 0.51% 0.58% 0.62% 0.68% 0.75% 0.64% 0.69% 0.77% 

Population 92,494 91,439 91,124 90,750 90,678 90,300 89,333 87,954 86,188 96,528 

153 

Per capita $ 988 

1,047 1,096 1,154 1,137 1,180 1,231 981 984 899


Direct and Overlapping Governmental Activities Debt 

As of June 30, 2009 

TABLE 13 

154 

Estimated Estimated share 

Debt Percentage of Overlapping 

Outstanding Applicable Debt 

Overlapping debt: 

Los Angeles County General Fund Obligations $ 928,941,195 

1.761% $ 16,358,654 

Los Angeles County Pension Obligations 235,690,861 1.761% 4,150,516 

Los Angeles County Superintendent of Schools Certificates of Participation 15,904,264 1.761% 280,074 

Los Angeles County Flood Control District 84,705,000 1.793% 1,518,761 

Metropolitan Water District 293,425,000 0.892% 2,617,351 

Santa Monica Community College District 241,365,685 58.287% 140,684,817 

Los Angeles Unified School District 8,046,220,000 0.0002% 16,092 

Santa Monica-Malibu Unified School District 126,280,034 58.358% 73,694,502 

Los Angeles County Regional Park and Open Space Assessment District 246,875,000 1.761% 4,347,469 

Santa Monica Community College District Certificates of Participation 26,710,000 58.287% 15,568,458 

Los Angeles Unified School District Certificates of Participation 440,351,710 0.0002% 881 

Los Angeles Community College District 2,408,605,000 0.009% 216,774 

Santa Monica-Malibu Unified School District Certificates of Participation 16,776,501 58.358% 9,790,430 

Subtotal, overlapping debt 269,244,779 

City direct governmental debt 175,120,324 

Total direct and overlapping governmental debt $ 444,365,103 

Source: California Municipal Statistics, Inc.


Computation of Legal Debt Margin 


TABLE 14 

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-00 

Total net debt applicable to limit $ 141,302,416 

148,656,800 156,937,600 165,988,287 165,375,304 138,094,965 143,524,025 125,316,282 99,427,444 101,717,884 

Debt limit 2,449,428,970 2,214,502,370 2,068,018,972 1,877,324,663 1,713,217,857 1,627,881,798 1,513,649,468 1,389,360,631 1,271,486,828 1,160,525,666 

Legal debt margin 2,308,126,554 2,065,845,570 1,911,081,372 1,711,336,376 1,547,842,553 1,489,786,833 1,370,125,443 1,264,044,349 1,172,059,384 1,058,807,782 

Total net debt applicable to the limit 

as a percentage of debt limit 5.77% 6.71% 7.59% 8.84% 9.65% 8.48% 9.48% 9.02% 7.82% 8.76% 

Net assessed value $ 23,412,712,570 

Add: exempt property 1,081,577,128 

Total gross assessed value $ 24,494,289,698 

155 

Debt limit - 10% of total assessed value (1) 2,449,428,970 

Amount of debt applicable to debt limit: 

Total bonded debt 159,235,000 

Less: 

Assets in debt service funds 

available for payment of bonds 17,932,584 

Total amount of debt applicable to debt limit 141,302,416 

Legal debt margin $ 2,308,126,554 

(1) Per Section 607 of the City Charter, bonded indebtedness of the City may not exceed 10% of total assessed valuation 

of property within the City, exclusive of any indebtedness incurred for the purpose of water supply or sewers or storm drains. 

Source: City of Santa Monica Finance Department


Wastewater Enterprise Revenue Bonds Coverage 

TABLE 15 

Direct Net revenue 

Fiscal Gross operating available for 

Debt service requirement 

year revenues (1) expense (2) debt service Principal Interest Total Coverage 

2008-09 $ 15,978,030 $ 8,305,013 $ 7,673,017 $ 1,500,000 $ 1,071,812 $ 2,571,812 2.98 

2007-08 17,359,852 12,711,059 4,648,793 1,455,000 1,115,463 2,570,463 1.81 

2006-07 16,401,212 12,613,626 3,787,586 1,260,000 1,311,589 2,571,589 1.47 

2005-06 14,437,130 10,463,034 3,974,096 1,190,000 1,419,825 2,609,825 1.52 

2004-05 14,233,699 9,818,457 4,415,242 1,130,000 1,470,675 2,600,675 1.70 

2003-04 14,191,264 9,349,681 4,841,583 1,005,000 1,591,275 2,596,275 1.86 

2002-03 14,593,471 10,818,410 3,775,061 890,000 1,698,075 2,588,075 1.46 

2001-02 15,196,031 8,104,968 7,091,063 795,000 1,793,475 2,588,475 2.74 

2000-01 19,211,915 10,772,786 8,439,129 700,000 1,877,475 2,577,475 3.27 

1999-00 16,118,683 6,124,121 9,994,562 625,000 1,952,475 2,577,475 3.88 

(1) Gross revenues included operating revenues plus non-operating revenues and net interfund transfers 

through FY 2007-08. Starting in FY 2008-09 gross revenues included operating revenues plus operating 

transfers specifically related to wastewater operations. 

(2) Excludes depreciation expense, write-off of disposed assets, and capital-related expenditures. 

Note: 

The Hyperion Project, Wastewater Enterprise Revenue Bonds were issued November 26, 1991 at an interest rate of 

6.25% with ratings of A1 from Moody's Investors Service, Inc. and A+ from Standard and Poor's Corporation. Debt 

service began in FY 1992-93. These bonds were refunded by the issuance of insured Wastewater Enterprise Revenue 

Bonds, 1993 Refunding Series on December 22, 1993 with an interest rate of 5.3084% with ratings of Aaa and AAA by 

Moody's Investors Services, Inc. and Standard and Poor's Corporation, respectively. The Refunding Bonds are insured 

by AMBAC Indemnity. 

On October 13, 2005 the City issued $20,305,000 of Wastewater Enterprise Refunding Revenue Bonds bearing interest 

from 3.00% to 5.00% to defease $21,535,000 of the outstanding 1993 Wastewater Enterprise Revenue Bonds, 1993 

Refunding Series with ratings from Moody's Investor Services, Inc. of A1, Standard and Poor's Corporation of AA and 

Fitch Ratings of AAA. The Refunding Bonds are insured by Financial Guaranty Insurance Company. 

On November 17, 2008 Standard and Poor's Corporation upgraded the underlying rating to AAA. 


156


Redevelopment Agency Earthquake Recovery Project 

Tax Allocation Bonds Coverage 

TABLE 16 




year revenues expenses debt service Principal Interest Total Coverage 

2008-09 $ 69,431,409 $ 3,756,953 $ 65,674,456 $ 1,615,000 $ 2,788,981 $ 4,403,981 14.91 

2007-08 63,582,749 3,395,418 60,187,331 1,530,000 2,875,469 4,405,469 13.66 

2006-07 58,267,909 2,670,168 55,597,741 2,225,000 1,998,213 4,223,213 13.16 

2005-06 49,668,747 1,833,675 47,835,072 1,095,000 3,579,048 4,674,048 10.23 

2004-05 36,763,429 1,109,270 35,654,159 1,045,000 3,627,198 4,672,198 7.63 

2003-04 31,918,204 1,033,362 30,884,842 1,000,000 3,673,210 4,673,210 6.61 

2002-03 33,522,316 756,744 32,765,572 960,000 3,717,310 4,677,310 7.01 

2001-02 26,688,631 843,901 25,844,730 920,000 3,759,610 4,679,610 5.52 

2000-01 17,910,624 731,954 17,178,670 880,000 4,118,436 4,998,436 3.44 

Note: 

On December 1, 1999, the Redevelopment Agency of the City of Santa Monica issued Earthquake Recovery 

Redevelopment Project Area Tax Allocation Bonds at various interest rates of 4.58% to 7.50% which were initially 

given underlying ratings of A by Fitch, Baa1 by Moody's, and A- by Standard and Poor's, but all rated the issue AAA 

with insurance. 

On April 27, 2006, the Redevelopment Agency of the City of Santa Monica issued $64,720,000 of Earthquake 

Redevelopment Project refunding bonds bearing interest from 4.00% to 5.5% to defease the 1999 Earthquake 

Redevelopment Project Bonds which were initially given underlying ratings of A+ by Fitch, A3 by Moody's and A by 

Standard and Poors, but all rated AAA with insurance. 


157


Redevelopment Agency Ocean Park Project 

Tax Allocation Refunding Bonds Coverage 

TABLE 17 




year revenues expense debt service Principal Interest Total Coverage 

2008-09 $ 4,227,693 $ 274,561 $ 3,953,132 $ 1,055,000 $ 670,998 $ 1,725,998 2.29 

2007-08 4,086,779 269,907 3,816,872 1,015,000 711,129 1,726,129 2.21 

2006-07 3,958,631 229,017 3,729,614 980,000 748,535 1,728,535 2.16 

2005-06 3,332,493 256,927 3,075,566 945,000 784,628 1,729,628 1.78 

2004-05 3,034,112 218,253 2,815,859 905,000 820,448 1,725,448 1.63 

2003-04 2,896,936 182,117 2,714,819 865,000 859,091 1,724,091 1.57 

2002-03 2,737,356 178,996 2,558,360 — 586,423 586,423 4.36 

2001-02 2,944,183 206,004 2,738,179 280,000 651,925 931,925 2.94 

2000-01 3,240,610 181,426 3,059,184 265,000 668,555 933,555 3.28 

1999-00 1,848,217 186,823 1,661,394 250,000 683,755 933,755 1.78 

Note: 

In October of 1984, the Redevelopment Agency issued Tax Allocation Bonds in the principal sum of $5,700,000 at an 

interest rate of 10.89%. Such obligations were serial in nature and matured annually with the final payment of $686,650 

due in 2007. The bond proceeds were used to acquire land, construction of a public park, and for low and moderateincome 

housing. 

In April of 1988, the Redevelopment Agency issued Refunding and Refinancing Bonds in the principal sum of 

$8,775,000 at an interest rate of 5.2 - 8.25%. Such obligations were serial in nature and matured annually with the final 

payment of $754,906 due in 2019. The bond proceeds were used to defease the 1984 Ocean Park Bonds and to pay a 

portion of various Promissory Notes due to the City of Santa Monica. 

In November of 1992, the Redevelopment Agency issued Ocean Park Redevelopment Project Tax Allocation Refunding 

Bonds, Series 1992, in the principal sum of $11,325,000 at an interest rate of 6.89%. Such obligations are serial in 

nature and mature annually with the final payment of $931,500 due in 2019. The bond proceeds were issued to defease 

the 1988 Refunding and Refinancing Bonds and to pay a portion of various Promissory Notes due to the City of Santa 

Monica. Debt service payments began in fiscal year 1992-93. 

On May 2, 2002, the Agency issued $19,315,000 of Ocean Park refunding and new money bonds bearing interest at 

5.03% to defease the outstanding 1992 Ocean Park Project Bonds and to provide funds for new low-moderate-income 

projects. Debt service payments on the 2002 bonds began in fiscal year 2002-03. Coverage ratios before FY 2002-03 

above reflect the 1992 bonds. 


158


Demographic and Economic Statistics 

Last Ten Calendar Years 

TABLE 18 

Calendar 

year Population (1) 

Personal income (2) 

Per capita 

(millions) personal income (3) 

Unemployment 

rate (4) 

2009 92,494 * * 9.5 % 

2008 91,439 $ 552,450 $ 42,916 5.5 

2007 91,124 539,163 41,875 4.0 

2006 90,750 505,197 39,011 4.2 

2005 90,678 477,101 36,917 4.8 

2004 90,410 453,902 35,188 5.9 

2003 89,339 427,041 33,318 4.6 

2002 87,994 412,753 32,522 4.4 

2001 85,576 403,519 32,152 3.7 

2000 84,084 385,053 31,045 3.5 

* No data is available for 2009 as of publication date of CAFR. 

Note: 

Source: 

Data shown is the Metropolitan Statistical Area of Los Angeles-Long Beach-Santa Ana, CA. 

Data by City is not available. 

(1) California Department of Finance 

(2) and (3) Bureau of Economic Analysis 

(4) State of California, Employment Development Department, Labor Market Information Division 

159


Principal Employers 

Current Year and Nine Years Ago 

TABLE 19 

Employers 

Number of 

employees 

2008-09 

Rank 


total City 

employment 

Number of 

employees 

1999-00 

Rank 


total City 

employment 

Santa Monica College 2,143 1 2.70 % 1,595 2 2.35 % 

City of Santa Monica 1,949 2 2.46 1,650 1 2.43 

Santa Monica-UCLA Hospital 1,767 3 2.23 1,000 5 1.47 

Saint John's Hospital Medical Center 1,682 4 2.12 1,542 3 2.27 

Santa Monica-Malibu Unified School District 1,643 5 2.07 1,300 4 1.91 

RAND Corporation 898 6 1.13 

MTV Networks 878 7 1.11 964 7 1.42 

Activision 781 8 0.98 

ET Whitehall (Shutters and Casa del Mar) 654 9 0.82 

Universal Music Group 518 10 0.65 

Metro Goldwyn Meyer, Inc. 989 6 1.46 

Lear Astronics 686 8 1.01 

The Gillette Company Stationery 682 9 1.00 

Specialty Laboratories, Inc. 619 10 0.91 

Total jobs provided by principal employers 12,913 11,027 

Average total jobs in Santa Monica 79,376 67,920 

Principal employers as percent of total jobs 16.27% 16.24% 

Source: City of Santa Monica Economic Development Division, Housing and Economic Development Department 

160


Full-Time Equivalent City Government Employees by Function/Program 

Last Six Fiscal Years 

TABLE 20 

Function/Program 

2008-09 2007-08 2006-07 2005-06 2004-05 2003-04 

161 

General government 217.0 191.6 186.1 179.7 164.9 159.4 

Public safety 

Police 

Sworn 216.0 216.0 216.0 216.0 214.0 214.0 

Non-sworn 223.4 246.9 243.0 242.0 283.6 239.7 

Fire 

Sworn 106.0 107.0 106.0 106.0 104.0 105.0 

Non-sworn 11.0 27.3 29.6 26.9 27.3 26.3 

General services 260.1 268.9 131.7 124.7 117.6 117.8 

Cultural and recreation services 148.5 145.4 228.3 218.8 204.9 206.7 

Library 107.3 107.1 107.1 105.4 83.9 84.5 

Housing and community development 158.4 139.9 145.2 144.1 137.7 134.0 

Beach recreation 46.5 24.8 24.3 23.3 23.3 23.3 

Cable communications (1) — — — — 10.8 10.5 

Water 47.0 52.2 52.2 52.2 52.2 51.2 

Solid waste management 84.0 83.1 106.8 106.8 104.0 102.0 

Pier 16.2 16.5 25.8 26.8 26.4 27.2 

Wastewater 22.2 39.6 39.6 39.7 36.4 36.4 

Civic Auditorium 34.4 35.0 35.0 35.0 34.9 34.9 

Airport 12.2 12.4 12.3 11.3 11.3 11.3 

Cemetery 10.1 10.2 9.5 9.5 9.5 9.5 

Big Blue Bus 417.7 441.9 441.9 441.9 437.9 439.0 

Vehicle management 28.0 28.8 24.8 24.8 24.8 24.8 

Self insurance - workers' compensation 12.0 12.1 12.1 12.1 12.1 11.7 

Total all funds 2,178.0 2,206.7 2,177.3 2,147.0 2,121.5 2,069.2 

Note: Includes permanent and temporary employees (2,080 hours = 1 full-time position). 

(1) Cable communications was merged into the General Fund in fiscal year 2005-2006. 

Source: City of Santa Monica Budget


Operating Indicators by Function/Program 

Last Four Fiscal Years 

TABLE 21 

Function / program 

2008-09 2007-08 2006-07 2005-06 


Electronic requests for government information 15,700,000 24,631,223 20,999,363 14,211,319 

Hours of live public meeting coverage 216 444 332 310 


Number of emergency response incidents 11,690 11,553 12,551 11,435 

Number of inspections 8,918 7,053 6,562 7,125 

Calls to Police Department for service 107,604 106,497 109,328 105,308 

Police reports issued 14,373 14,346 15,334 14,618 

Number of crimes recorded 9,561 9,604 9,902 9,761 


Number of square feet of sidewalks repaired 190,000 140,000 127,170 97,522 

Number of graffiti removals performed 18,481 25,251 22,865 11,780 

Feet of sewer mains cleaned 1,532,184 783,932 1,179,759 647,841 


Number of cars parked in beach lots 1,450,000 1,640,733 1,635,707 1,572,374 

Senior services meals served 42,459 30,917 30,721 28,609 

Number of low income persons receiving primary health care 4,344 3,650 3,231 3,345 

Number of youth regularly attending homework assistance programs 558 547 511 534 

Library: 

Library visitors 1,300,000 1,328,614 1,273,672 938,067 

Materials used 1,900,000 1,795,844 1,607,534 1,202,754 

Public access computer sessions 290,000 286,077 274,239 145,824 


Building and Safety plan checks completed 1,798 1,786 1,601 1,975 

Building inspections performed 18,103 17,671 17,120 17,765 

Transportation Managements plan checks completed 750 531 573 572 

Resident parking passes sold 39,000 45,657 42,645 37,028 

Number of traffic signs installed, replaced, repaired, or removed 5,600 5,633 5,447 10,647 

Number of parking meters installed, replaced, repaired, or removed 45,257 45,532 42,645 27,182 

Water: 

Number of direct customer accounts 17,356 17,272 17,175 17,171 

Water sold to direct customers in whole acre feet 12,879 12,975 13,378 12,775 

Airport: 

Number of tenant aircraft 420 420 420 420 

Noise ordinance violations issued 210 244 223 242 

Big Blue Bus: 

Revenue Miles 5,316,228 5,114,167 5,016,822 5,053,891 

Farebox revenue (in millions) 11.51 10.91 9.72 9.8 

Total passenger trips (in millions) 22.0 21.0 21.8 22.0 

Number of customer relations phone calls 71,868 74,131 60,096 60,153 

Total number of charters 224 554 1,121 1,918 

Sources: Various City departments. 

Note: Statistical Table implemented in FY05-06 per GASB Statement 44. Data from previous fiscal years not shown. 

162


Capital Asset Statistics by Function/Program 

Last Four Fiscal Years 

TABLE 22 

Function / program 

Fiscal Year 

2008-09 2007-08 2006-07 2005-06 


Number of police vehicles 244 232 213 174 

Number of fire vehicles 58 58 60 55 

Number of fire stations 5 5 5 5 

Number of police substations including Public Safety Facility 4 4 4 4 


Square footage of asphalt paved streets 30,385,115 30,421,841 30,443,441 30,443,441 

Square footage of concrete paved streets 1,125,504 1,088,778 1,067,178 1,067,178 

Square footage of sidewalks 8,386,998 8,386,183 8,386,183 8,386,183 

Square footage of curbs and gutters 1,776,089 1,702,071 1,663,271 1,663,271 


Number of beach parking lots 16 16 16 16 

Number of parks 26 26 24 23 

Number of swim centers 2 1 1 1 

Library: 

Number of facilities: main and branches 4 4 4 4 


Downtown structure visitors 3,928,900 3,768,746 3,817,550 3,791,646 

Water: 

Number of feet of water main installed 0 22,660 22,660 22,660 

Water main system (in miles) 205 205 205 205 

Reclaimed water main system (in miles) 4 4 4 4 

Wastewater: 

City sewage flow in million gallons/day 13.3 10.4 12.3 12.8 

Sewer main system (in miles) 152 152 152 152 

Stormwater: 

Daily gallons treated for recycling by SMURRF 275,000 330,000 330,000 330,000 

Storm drain system (in miles) 58 58 58 58 

Airport: 

Aircraft operations (departures and arrivals) 117,250 136,485 136,270 135,765 

Big Blue Bus: 

Number of buses 197 202 202 211 

Sources: Various City departments. 

Note: Statistical Table implemented in FY05-06 per GASB Statement 44. Data from previous fiscal years not 

shown. 

163


164

Comprehensive Annual Financial Report - City of Santa Monica

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