Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements, Continued
For the fiscal year ended June 30, 2009
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.
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