Comprehensive Annual Financial Report - City of Cerritos

CAPITAL ASSET AND DEBT ADMINISTRATION (CONTINUED)
Capital Assets (Continued)
Major capital asset events during the fiscal year included the following:
Purchase of property located on the Northwest corner of Studebaker Road and 183 rd Street in
the amount of $7.0 million;
Completion of the Sheriff Station expansion amounting to $6.5 million;
The Bloomfield Avenue resurfacing project was completed in the amount of $1.1 million.
Besides utilizing highway users’ tax revenues to complete this project, the City received $0.5
million in ARRA funding for the completion of this resurfacing.
Detailed information relating to 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 had total debt outstanding of $176.2 million. The
majority of this debt is Redevelopment Agency revenue bonds ($168.8 million). Additions to the
City’s long-term debt included $2.0 million of OPEB obligation and $1.9 million in general liability
claims payable.
City of Cerritos Long-Term Debt
(in millions)
2010 2009
Los Cerritos-Revenue Bonds $ 39.8 $ 42.3
Los Coyotes-Revenue Bonds 127.4 132.1
Add Deferred Amounts 1.6 1.7
Subtotal – Revenue Bonds 168.8 176.1
Note Payable 1.0 1.0
Compensated Absences 2.5 2.5
Net OPEB Obligation 2.0 -
Claims Payable-General Liability 1.9 -
Total Long-Term Debt $ 176.2 $ 179.6
Detailed information relating to long-term debt can be found in Note 9 to the basic financial
statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGET
Softness in the real estate market along with a tightening in the credit market continues to have an
adverse effect on the local Southern California economy. Key sectors of the economy that continue to
be affected include technology, entertainment and certain durable goods. Rising costs of raw materials
along with unemployment concerns has slowed remodeling and reconstruction of housing within the
City of Cerritos.
The City of Cerritos has been able to maintain its levels of service to the community by positioning
itself to withstand fluctuations in the economic environment. The combined tax revenues, particularly
sales tax and income from investments and ground leases have made it possible to progress with the
planned level of development while maintaining a high degree of financial stability.
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