California Comprehensive Annual Financial Report - City of Temecula

City of Temecula
Management’s Discussion and Analysis - continued
Fiscal Year Ended June 30, 2009
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City of Temecula
Summary of changes in Long-Term Debt
For the Year Ended June 30, 2009
Balance Balance Due Within
June 30, 2008 Additions Deletions June 30, 2009 One Year
Bonds and Notes Payable:
Tax allocation bonds $ 63,210,000 $ - $ 680,000 $ 62,530,000 $ 710,000
Certificates of participation 29,520,000 $ -
265,000 29,255,000 705,000
Notes Payable 495,332 495,332 - -
Total Bonds and Notes Payable $ 93,225,332 $ - $ 1,440,332 $ 91,785,000 $ 1,415,000
Capital leases 8,799 83,600 11,393 81,006 20,983
Additional information on long-term debt is available in Note 6 to the financial
statements on pages 46-51.
During fiscal year 2008-09, the City received a rating upgrade from Standard & Poor’s
on its outstanding 2008 Certificates of Participation, from an underlying A rating to an
A+ rating.
Economic Factors and Next Year’s Budgets and Rates
The key assumptions in the General Fund revenue budget for fiscal year 2009-10 were:
1. General Fund estimated revenues, net of operating transfers in, are estimated to
reach $53,293,195, a decrease of $2,748,438 from fiscal year 2008-09 actual
revenues.
2. Sales and Use Tax revenue are estimated to increase $629,230, or 3%, from
fiscal year 2008-09 actual revenue due to an anticipated in retail sales related to
the expansions of the Promenade Mall and Professional Hospital Supply.
3. Total property taxes are estimated to decrease $1,031,859, or 16%, from fiscal
year 2008-09 actual revenue primarily due to declines in property values due to
reassessments, corrections, and appeals.
4. Motor vehicle fees and Property Tax in Lieu of VLF are estimated to decrease
$695,926, or 9%, from fiscal year 2008-09 actual revenue primarily due to
declines in automobile sales and property assessed valuations.
5. Investment earnings are estimated to decrease $1,121,815, or 50%, from fiscal
year 2008-09 actual revenue primarily due to declining interest earning rates and
anticipated reductions in the overall investment pool due to the advanced
construction of major capital projects.
All of these factors were considered in preparing the City of Temecula’s annual
operating budget for fiscal year 2009-10.
See Independent Auditors’ Report
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