Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Notes to Basic Financial Statements
For the fiscal year ended June 30, 2008
(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