Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
Year ended June 30, 2008
The total net assets of the enterprise funds increased by $1.0 million. This was due primarily to increases
in operating revenues of $2.9 million, an increase in depreciation expense of $1.5 million, a decrease in
investment income of $2.5 million, a decrease in transfers in of $5.0 million, and a $7.8 million increase
in capital contributions received.
Total net assets of internal service funds at June 30, 2008 increased $11.3 million. This was primarily due
to an increase in operating revenue of $5.6 million (primarily increases of $2.0 million in Vehicle
Management Fund and $4.4 million in the Self-Insurance Comprehensive Fund), and a decrease in
insurance and bonds expense of $7.1 million.
Wastewater Enterprise Fund
The total net assets of the Wastewater Fund decreased by $2.3 million primarily due to increases in
personnel services expense of $0.2 million, increases in materials and supplies expense of $0.2 million, a
decrease in investment income of $0.5 million and an increase in loss on disposal of capital assets of $0.4
million.
Big Blue Bus Enterprise Fund
The total net assets of the Big Blue Bus increased $3.1 million. There were increases in personnel
services expenses of $2.4 million, increased materials and supplies expense of $1.3 million, increased
depreciation expense of $2.1 million and an increase in capital contributions – cash of $7.4 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 $0.4 million. Actual results for total
revenues exceeded the final adopted budget by $4.0 million primarily due to property taxes and other
income exceeding budget by $2.2 million and $1.4 million, respectively.
The final expenditure budget is greater than the original budget by $55.7 million. The increase is
comprised primarily of a $48.6 million re-appropriation of continuing capital improvement project
budgets from FY 2006-07 to FY 2007-08. Final budgeted expenditures exceeded actual expenditures by
$46.3 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, 2008, amounted to $1.1 billion (net
of accumulated depreciation) an increase of $52.3 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:
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