Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Management’s Discussion and Analysis, Continued
Year ended June 30, 2008
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
$198.2 million, a decrease from the prior year of $10.2 million or 4.9%. This amount was comprised of
$99.1 million of revenue bonds which are secured by both governmental and business-type revenue
sources, $75.6 million of tax allocation bonds which are secured by future tax revenues, $20.1 million of
general obligation bonds which are backed by the assets of the City and $3.4 million of various loans
payable. This is shown in the following table:
CITY OF SANTA MONICA
Outstanding Debt
(in millions)
Governmental activities Business-type activities Total
2007-08 2006-07 2007-08 2006-07 2007-08 2006-07
General obligation bonds
(backed by the City) $ 20.1 21.8 - - 20.1 21.8
Revenue bonds and notes
(backed by specific tax and fee 147.5 153.9 27.2 28.7 174.7 182.6
revenues)
Certificates of participation - - - 0.4 - 0.4
Other loans - - 3.4 3.6 3.4 3.6
Total $ 167.6 175.7 30.6 32.7 198.2 208.4
Additional information on the City’s long-term debt can be found in note 9 to the basic financial
statements.
OTHER POTENTIALLY SIGNIFICANT MATTERS
The City had been involved with various legal disputes involving the July 13, 2003 accident at the
Farmers Market. The disputes were settled for $21 million which was paid by the City’s insurers through
insurance policies.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
The City’s adopted General Fund budget for FY 2007-08 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.
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.
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