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, 2008
(10) FUND DEFICITS
Special Revenue Fund. A deficit fund balance in the amount of $5,821,981 exists in the Disaster
Relief Fund. 10% retention held by FEMA until project end is expected to alleviate this deficit fund
balance.
Capital Projects Fund. A deficit fund balance in the amount of $15,050,909 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 Fund. A net deficit in the amount of $1,771,573 exists in the Cemetery Fund due to
increased expenses compared to previous years. The deficit is expected to be funded by increased
operating revenues and improved operating efficiency.
(11) INTERFUND TRANSACTIONS
The following tables summarize inter-fund advances to/from and transfers in/out at June 30, 2008.
Advances to/from
Advances to/from other funds at June 30, 2008 are as follows:
Advances to
Advances from
(receivable fund) (payable fund) Amount
General Fund Downtown Redevelopment Project Fund $ 19,409,014
Non-major governmental funds 3,842,973
Non-major enterprise funds 11,853,979
Total General Fund 35,105,966
Non-major governmental funds Earthquake Redevelopment Fund 3,465,452
Non-major governmental funds Non-major governmental funds 6,371,075
Earthquake Redevelopment Fund Wastewater Fund 6,500,000
Wastewater Fund Non-major governmental funds 6,514,322
Wastewater Fund Non-major enterprise funds 88,875
Total advances to/from $ 58,045,690
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.
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