HomeMy WebLinkAbout0102.093'.
December 31, 1392
THE HONORABLE CITY COUNCIL
Palo Alto, California
~ttention: Fi~ance Committee
COMPRIBPS:LVE ANmT.l!.-1 FINANCIAL REPORT, E.:NJd.-*.:loI.'3 JUNE 30. 1992
Me~bers of the Council:
Report in Brief
In accordcl.nce with Article IV, Section 13 of the city Charter~ the
Comprehensiv':3. Annual Financial Report/ including the opinion of
Coopers' Lybrand, for tbe fiscal year ended June 30, 1992, is
hereby submitted for your revie ..... The fin:incial statements are the
responsibility of the city's management; and Coopers & Lybrand's
responsibility is to express an opin:on on them, based on their
audit.
The City of Palo Alto is located approximately 35 ~iles so~th of
8 San Francisco in santa. Clara county. dnd has a population of
56,330. It is a part of the Sa~ Francisco Bay metropolitan area.
The City was named for a tall redwood tree under whtch an early
Spanish exploration party camped in 1769. The nigh technology
industry. which has made Santa Clara county famous, has its roots
in Palo Alto, partly because of the presence of Stanford University
adjacent to the City. The 650-acre Stanford Research Park includes
the headquarters of HE'.1Nlett-Packacd, VaI'ian Associa.tes, and Syntex
among its residents. The City is a major employment center 'With
about 73,000 jabs, in addition to being a unique residential
community with about 25,200 housing units.
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For financial reporting purposes, and in conf~rmance with Gove~n
mental Accounting Standards Board Statement 14. "The Financial
Reporting Entity, II the City af Palo Alto's financial statement.s
include all componel1"t units that are financially accountable to the
city or whose relationship with the City is so signj,ficant that
failure to include them in the City's financial statements would
make the statements misleading or inco~plete. Financial account
ability is determined based upon 1) the city's substantive
authority for appointing the governing board; 2) the city's ability
to impose its will on the organization's operations; J) the
organization's ability to provide financial benefits or a financial
burden on the City; and 4) fiscal dependency on th~ City.
Accordingly, the City's general purpose financial statements
include the city of Palo ~lto Golf Course Corporation and the Palo
Alto Public Improvement corporation as component units. Incl~ded
in this report is the City's Single Audit Report for the year ended
Jun~ 30, 1992, prepared to ll"!eet the requirements of the Single
Audit Act of 1984.
The city of Palo Alto ~as incorporated in 1894 and operates as a
charter city, having had its first charter granted by the State of
California in 1909. The City operates under the counei I-manager
form of government. The nine council MEi!I!lbers are elected at large
for four-year staggered tern-.s. The Mayor and Vice M.ayor are
elected annually at the first Council meeting in January. The
Mayor presides at all Council meetings. The city Manager is
responsible for th~ ope'cation of all muni cipal functions except the
offices of City Attorney, City clerk and City Auditor. These
officials are appointed by, and report directly to, the City
Council.
The City provides a full range af municipal services, in addition
to providing its own municipal electric, water, gas, ...,aste.wdter,
store drain and refuse utilities. Its schools, parks and recre
ational facilities are outstanding. The City o"ms ]4 parks
totalling m',:,re than 4,000 acres, a golf course, two community
centers, cultural Center, Co~m~nity Theatre, Children's Theatre and
Junior Museum.
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In developing and evaluating the City's al:coullting system,
consideration has been gi ve.n to the adequac)' of internal accounting
controls. Internal accounting controls are designed to provide
reasonable, but not abscl'ute, assurance regarding th~ safeguarding
of assets against loss fro~ unauthoriz~d user disposition l and the
reliability of financial records for p~eparing financial statements
and maintaining accountability for assets. The concept of
'reasonable assur<lnce recogr.:Czes that the cost of internal controls
should not exceed the benefits likely to be derived I and that the
evaluation of cost and beflefits requires estimates and judgments by
management.
The Cit::, Auditor is appointed by th~ City Council. The Auditor's
Office performs financial and opeYational complianc~ audits of City
operations and issues ~eports to the Council and City Manager as
appropriate. .,
BUdgetary control is TI'.2.inta.i!led by an annual appropriation
ordinance, amended by Council action as required tnrolJ.ghout toe
year. In 1990 the Council adopted tbe concept of a t .... ·o-year b;,;:dget
plan l -\.lnd~r which the first year'6 buo.get is voted on and formally
approved by the councili the sec:cnd year is approved in concept.
and is formally adopted in June of the. second year. 'The two-step
adoption is because proposition 4 (Gann) limits the City to an
annual appropriation limit. The council takes similar action on
the first two j'ears of the Five Year Capita] lmprovernent Program
{eIP}. The first t;,ro-year budgti!t was for fiscal years 1990-92.
Adjustments to the t-..'o-year plan ,",'ere made via the Interim Budget
process for the 1991-92 fiscal year. Budgetary control is at the
departmentjf\Hlction, major object code of expenditure. An
encumbrance system is utilized: as purchase orders are issued,
corresponding amounts of appropriations are reserved for later
pa.yment so that apprcpriations may not be overspent. Budgets are
prepared f':)r all go',lecnmental and proprietary funds.
§.IGhlFICANT EVENTS ANPmnlltCCOMPLISHMENTS
In March 1992, the Council selected Palo Alto's Economic Future as
a p::-iority for 1992 and referred the PI iority to the council
Finance ccmmitte.e. Included in thE' priority were the follo'w.'ing
objectives:
o Address the st..ru\-:tural problems that stand in the way of
balancing reve!".u€s and expenditures for the long term;
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o Conduct an organizational revie~
hensive, objective a!1alYBis of
staffing patterns, 3flO identify
economy and efficiency; ar,o
that wi],l p~ovide a compre
the organization and its
possible a.redS of further
continue the analysis ot appropriate let"els of service l with
emphasis on the de~iver'l SyStET:1S of such services: to establish
higher standards of efficiency and quality custOIT,er service.
II'. the first area, staff from the Fir.ance and Planning D~part1"ilents
have begun an Economic Future Study, \tJhich has t'Wo I::1ain aims:
first, to accu'l'I1u!a-;;.e infornation on General fund revenues and
expendi tures in order to create an econorni-:: modal l.ihich 1.:i 11 allo,*,
prOjections of the "structural deficit", given certain expll.cit
as:sumptions about revenue and expenditure gro,,'-chi and second, to
research and q:uantify alternatives fer addressing the II"lstructural
deficit" including new revenues related to land use policies, new
revenues from fees and charges, savings from :management/operational
efficiencies, taxes, public/private partnerships, and service level
adjustments.
In the second area, the Fir.ar.ce Corerr:ittee has been 'Jorking lJith a
Blue Ribbon Task Force composed of members from the private sector,
to prepare a request for prcposal a~d to select a ccns~ltant to
perform an Organizational Revi~w. The Revie~ is to determine if
the City's General Fund departments are performing at maximum
efficiency and effectiveness in prov} ding the highest level of
service to the public at the lOwest achie ..... ~ble cost. A key
component of this effort ~ill be ~benchmarking~ City service levels
and service level standards with comparable municipalities,
including those cO:'1sidered to be :highly-efficient.
Additionally, staff began a citywide customer service iDiprovem~nt
effort in May 1991 1 and reviewed the project's accorr;plishments .... ith
the City Council in a september 1992 Study session_ A Steering
Committee, compo:5~d of key sta.ff fro!':", all City depart~entsJ is
'Working in a number of areas, includir.g citywide training~
interd.o;pa.r"tmental cooperation, recogni ti on of superior customer
service, citizen co:rnplain-: tracking, corr>muni ty and employee
surveys, and di.!."ectot"ies/signage_ "I"t~s. a Matter of Pride," t.he
ltIotto for the customeo:-service program, has been publicized
throughout the organization through a letter from the City Manage.:-,
a.'ards ernt-lazoned ...... ith a special emblem, training meetings,
employee surveys on custOF.,er service needs, and cust.omer feedback
cards at pub] ic counters and ot,her areas of the city Hall. Key
results of the progra~ include increased sensitivity to CUs.tomer
service issues, incorporation of the CUSLorner service theme in the
city's nascent b-;Jsiness outreach program, and irnpro'led coope:r:'ation
between departments as they recognl ze and worK together on a common
goal.
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Economic OUtlook and cunditions
The national recession contin ... ed tv impact the Si licon Valley in
fiscal year 1991-92, as evidenced by slo ... 'ed sales tax grov.·th,
dampened residential property salE's, and increased une~plo.YJ!!ent
throughout Santa Clara county. Ho'Wever, l-lrUdeIlt fiscal policy has
allowed the City to retain a healthy financial pos!tio~ that should
enable it to weather the severe effects of the recessionary
economy.
The State of California has also grappled ~ith the impacts of a
slowed economy I and programs previously funded by the Stat~ or
County governments have been passed on to cities. In the 1991-92
fiscal year, the City'S bUdget was forced to absorb $],17,000 in
property tax col1cc't.ion fees ar.d $336/000 in prisoner booking
charges assessed by the County, along with a loss of 50 percent
(approximately $100,000; of r.on-parking fines and forfeitures and
47 percent (appro~imately $70,OCO) of cigarette tax revenue trans
ferred to the State. With the state's economy expected to re!l1ain
sluggish through 1993, and ... ,lith further gro\llth in deJ'land for
services, the State .. .'ill most likely be forced to remedy another
budget shortfall in June 1933 by similar actions to reduce
municipal revenues while shifting expenditures from both the State
and counties LO cities.
Genera.! Fw!.4
The 1991-92 operating results tor the General Fund vere much more
favorable than had bee~ ant icipated. A surplus of revenues over
expenditu::--es resulted not only fror;' one-timE! events~ but also from
effective measures taken by the City to control expenditure~ at
every operational level. RevenuE:S '",'ere higher than anticipated by
$1.3 millian , of which $500 ,000 was from one-ti~e sales tax audit
adjustments. Expenditure savings provided for the significant
operating surplus, however, with a $2.1 million General Fund ~redit
from the Pu~lic Employees' Retirement System (PEPS) and over $2
million of savings in non-salary categories after providing $1.9
million in General Fund encumbrances and rc~ppropriations.
Revenues: Despite the sluggish economic recovery ~ sales tax
revenues exceeded 1990-91 receipts by 3.9 percent. A large portion
of the increase wdS due to a State Board of Equalization one-time
reallocation to Palo Alto of taxes erroneously credited to other
cities. Property tax receipts · ... 'ere 5.5 percent higher than the
previous fiscal yedt", '¥.'ith the largest gro'w'th in U?'lsecured property
CMR:I02:93 viii
tax. In Other Taxe::: and Fines, utility users tax revenue qre'"" 3.6
parcent" only a fraction under the anount projected froit t:.his
source. Fines and Penalties d€creased at an anticipated rate of
7 ~ 5 percent, due mai !11y to t~.c divers ion of 50 percent of non
parking tines and forfeitures by the State as part of the 1991-92
buclget package. Interest revenue shO',~'ed an increase due to growl:h
in the size of the Gen~ral Fund portfolio, as expenditure savings
were realiz.ed through the fiscal year. op2!"ating transfers-into
the Gener-al Fund also compare favorably with fiscal 1991-92, as the
Water Fund resumed its rate-of-retu=n transfer vhich had been
forgiven in the previous yeaI.".
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CITY OF PALO AL TO
GENERAL FUND REVENUES BY SOURCE
For the year ended June 30, 1992
29.32%
6.1
6.70%
aeVenUf>5 ($ . .0.00 I
Sales tax
Property taxes
13.11%
Other taxes and fines
Service fees and ~ermits
Fire protection S. e!T1€rgency
communication services
In~ele8t earning5
Int~rfund charges (net)
ot her revenu es
'Iotal direc-:. rever'UIOi'!t
Opc:rating transfers in
Total revenues
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apropert) Taxes
_Sales. Ta.x
OUtilitv Users's Tax
.Transient Occupancy Ta.l(
g]Other Taxes and Fmes
DFecs & Permits
42% 8!Interest
19'92
A,=t'..;al
$14,6g3
8} 555
11,611
6,:'70
3,908
2, Q6J
(::.02 )
...l §.ll
:':;, 119
::.:, ..2J_..2.
S§ __ §_"l51
o Emergency Services
.Ot.~er Revenue
Percent !r.crea!'!e
of 'Ictal ,Decrease)
~_'i.Y_~_G..dL frem 1-:;191
22.01 ~53
12.S2 ". 17.3S JS
9.64 4"
5.85 l4?
3.09 ::'44
{ • 16 ) 90
.....h.l.! -~
75.:).8 2,265
_~ __ 't: .. S1_~ ~,631
100.00 L8_96
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.&~..R~ndi tures ~ Tota 1
unchanged from 1990-91
salary and non-salary
~ransf~rs out to other
, .. -
General Fur-Irl expe-nditures were basically
levels I 0.5 a result of savings in both the
c'3.teg~ries and a decreas.:;;: in operating
funds.
Salaries and benefits a~ounted to $43.1 mill~on for the General
Fund, reflecting a savings over budget of r.lore than $2 million.
These savings were the result of the credit of PERS employer'S
contributions from AB702. With~ut the credi~, General fund
salaries and benefits i~creased 7 percent fro~ the 1990-91 fiscal
year. In the nor.-salco,ry expenditure category, a combination of
recession-induced low bids on major contracts, tightened purchasing
controls and reductions in the amount of reappropriations and
encumbrances, and decreased general liability self-insurance
expenses, yielded sig:lificant s6vir.gs with respect to budget -
almvst $4 million for th~ 1991-92 fiscal year. operating transfers
out were decreased due in part to the deferr~l of approximately $1
million of capital projects in accordance ~ith the capital Budget.
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CITY OF PALO ALTO
GENERAL FUND EXPENDITURES
For the year ended June 30, 1992
5,63%
16.22%
Ext;-€rlditl.1res (SOOO)
public Works
police
Administration
Fire
Social and Commu~ity Service~
Planning/community Environment
Scnool Site Opera~ions
Total direct expe~ditures
Operating transfers out
Total expend:tuces
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12.11%
20.07~b
xii
1992
A~t-.ual , 7, 129
13,Oi6
8,519
10, ("2 ,
II ,a 1. 6
3,313
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59,349
2r~44
56~~..9._:a
GAdministration
.Public Works
[]Corrunu..Ttity Environment
.Police
CJFire
DSoda! Servii;::es
IllSehool Sites
.i'ercer,t Incrpase
of T,:'tal rCc>cr€ase i
Expe!lditure frDm 1~_2..±
11.44 1~2S8
20.9'3 209
l' 67 €e9
16.10 26S
18.97 "I 5.32 432
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35.27 3~949
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CITY OF PALO ALTO
GENERAL FUND EXPENDITURES BY TYPE
For the year ended June 30, 1992
~ __ m:!.itures (SODe)
salaries , Benefits
Conl::-ar::t Services
SuPpliP$ & Materials
General Expense
Rer.t:o & Leases
8.03%
Facilities &: Equip.'ne:1t Purcl-,as.:-!;
Schoal Eite lease pal'1T'1E';'t~_5
Total direct expenditures
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:"992
liet '":,,, 1
S42,8,)5
4,766
1, !PS
4:,319
;.7
578
4,3:2].
50;., 3 'i'3
DlSalaries and Benefitc;
ffilCOl'irract Services
!:2ISupplies and Materials
.General Expense
o Rents and Lea..~s
o School Site: L.ea.">e Payment<;
IBIFacility & Equip Purchases
Percent InCrease
of r,;;;t.al I Decrease)
E)(per:d:tur-e f rOr1.L_!_~J.1.
"2.2'8 2,769
8 .. 03 (06)
3 .. !6 ( 127)
7.28 1, 60~
.9g " -" (250)
--Ll1. __ 233
JI:,(L"::JO 3,949
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fUl1d Bali3ncg:
Total General Fund reser-.res i:"~crea'Sed by $':>.4 million over 1990-9J,
as a result ot the Dperating surplus and the payback of $2.2
million which had been advanced to ,:;.ther funds. The A8702 rPERS)
cre:eit 'Was set aside in a seoarate reserve due to undecided
litigation associated with the cill. certain capital projects for
,,'hich monies had been advd.!"1ced f('om the Ge'l"l.~ral fund were reim
b;,;;rsed, increasing reserv-=s by an addi tiona 1 $778,000. Most
notable of these projects ,,"'as .the ITT Mars.h prDject, completed
early in the fiscal year, for which Federal Coastal Conservancy
funds had been d~s ignat.ed.
Special Reveru.:e Funds
The Special Revenue Funds include the Street Improvement Fund,
Federal Revenue Fund, :rousing-ir"-Lieu Fund, Spe~ial [ristricts Fund
and Transportation Mitigation Fun5.. The Publ ic Improvenent and
Golf Course corporation are included as component units ~ithin this
fund type. In Dece!nber 1991, the ('1 ty Coun·.::il approved the use of
Co~~unity Development Block Gran~ (CDBGj funds in the amount of
$9B7,700, for the purchase of a ~en-unit apartment building by the
Palo Alto Housing corporation. The necE',ssary funds represented an
accumulation of CD8G fU:1ding -:>ver -che past seven years and 'Will
provide affordable housing for lC)~ and !'loderate incQ",e ir,di viduals
in the City.
Enterprise Fun~s
The Enterprise Funds of the city include the Electric, Gas, water,
Wastewater, Refuse and storm Dr3 inage Funds. Total enterprise
revenues grew by 6 percent in fiscal year 1991-92; but operating
expenses showed consider-able sdving!::: from the prior year, which
served to increase most reserves to higher levels than had beE:n
anticipated. A series of favorable events, including the sale of
surplus entitlements to the Calaveras Hydroelectric: project,
resu:..t.ed in savings cf Clver $10 :':n]lion in the Electric Fund alone.
Each er.tero~ise had significant accomplishments in the fiscal year
for which they take justifiable pride. The City's gas utility was
awarded the Public Gas System P.chievement A\I.'ard by the American
Public Gas AssociatiorJ for the City's efforts in improving gas
distribution systems and for-overall support to the A.-c,erican public
Gas Industry. For the trird year in a .row~ the Water utility
achieved the strict conservdtiun goals set by its wholesale ~ater
supplier, San Francisco "'later District. The Refuse Fund completed
Phase One of Byxbee ParK, ar, innovative "art park.", built on a
closed portion of landfill site, and it was op~ned to the public.
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CITY OF PALO ALTO
El'<'TERPRISE FUNDS REVENUE
For the year ended June 3D, J992
1327%
Flevenues (~Q9Ql
Ut.ility Sales
Otte!" Revenue
!nt.e:"est In::c:ne
Emp::,oyee S~r\'ic:es
Operating Expenses
Purchases
FletoJrl"l on Equi.ty to Ge:-Jera':' FU:1d
rnterest lxper.se
.kant
other f.:xpens~5
Total Expenses
CMP:102~9j
un' OF PALO ALTO
ENTERPRISE FUNDS EXPENSES
For the year ended June 3D, J 992
cr~'atr-!
.Electric
!:ZIG",
o Wastewater
EEJRefuse
t:i:lStorm Drainage
1992
AC:~l.lll
$J " • . <"33
S, ~'ZJ
~ -: ~,:,
S ,~J 5"",§,'~"~
1? lE4
n, .3 ,:11
45, 545
:'0, 1<:5
7,711
'E, • 500
.1...l,},~,~
$J..Q7 ,)):i
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0.47%
-12.71%
13.IP% 10,60%
Ir.c:~e.ase
Pe!."cent (Decrease)
of T<:t!;_oi.1. from 1991
E·I . " 6, 68;2
? .<:'3 4El
~ ___ 53
lpO._pp' ?, 196
16.00 1,068
J6.20 665
~3.3? 15 r 709)
9.45 2,D9iJ
7.24 " 520
6. 06 404
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Oebt gervic~:
In March 1992, the City issued the 1992 clvic Center Certificates
of Participation through the Palo Alto public Imprcvenlent Corpora
tion. The new issue served to refinance the City's 1983 Civic
Center certificates of Parti-c::ipation (COPs), at a !o\oier average
interest rate (5.97 percent as opposed to 8.5 percent), and
provided $1.9 million of additio~al funds for capital improvements
at the civic Center. The improvement:=; include the structural
retrof it 0f the Police Wing and spr inkIer s;,rst~m insta llations in
the civic Ce~ter tower" The refinancing of the old certificates
resulted in a net gain of approximate:ly $500, 000.
In addition, City of Palo Alto Utility Revenue Bonds 1992
were issued in April of 1992, at interest rates of 6.3
percent, providing $4.75 million for Storm Drainaga
improvement projects.
Capital projects Fund:
Series "
to 6.375
capital
Major project expcndit'Jres in 1991-92 included the completion of
the ITT Marsh (named the Emily Rcnzel Marsh) Design and Construc
tion Proj~ct for a total project cost of $1.2 million. Expendi
tures for the Public Building Structural Improvements project,
whic.;h included 'the projects funded from the 1992 Civic Center COPs,
totaled $740, DOD. As ?reviously stated, capital spending "",as
reduced by the deferral of specific projects to future years.
Trust ~nd Agency Funds
Trust and agency funds are used to account for assets held by tJ-,e
City in a trustee capacity, or as an agant for others. Early in
fiscal year 1991-92, the Child Care Fund ....,.as establish.;d as a trust
fund to hcus~ monies raised by the Child Care Task Force for the
purpose of implementing the City's Child Care Master Plan. The
goals of the Master Plan are t.o address affordability, accessibili
ty. availability and quality of child care in Palo AJto.
CMR: 102: 93 xvi
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REPOR.T FOklO.T
The co~prehensive Annual Financial Report (CAFR) has been divided
into four sections!
INTRODUCTION! This section tranS!'Iits the CAFR to tho:! City Council
and includes a City crganizatio.""l chart and table of contents.
FINANCI.hL SECTION: This inclutjes:
GQneral purpose Fi~ancial Statements
This section contains the independent accountant's report and
the general purpose financial staternents (GPF3). also known as
the combined financial state:nents, which reflect a complete
summary of the City's a,-:-tivities and encoi.'t1.pass all fund types
and account groups. They present a combined overvie .... ' of the
financial position, chaT'1.ges in financial position of propri
etary funds and operating results of the corr.pleted fiscal
year. This sectioJ"'. also includes the llotes to the Financial
Stat'8:rnents, ..,'hich cOl'l1nmnicate information necessary for fair
presentation of financial position and resu~ts of operations
that a-:.-e not readily apparent or cannot be included in the
financial state;t'.er-ts th!!'!r.-.selves. GPFS are "lift:.able ft • and may
be issued separately frol'l1 the CAFR, for inClusion in official
state.ments. bond offerings, or for distribution to users
requiring less detai led infcrl.'.at ion than is contained in the.
cOJ"lplete. CA.FR.
Combining Fund Statements
This section p~esents combining and individual fund and
account group state.m:=!nts ar,d schedules. Combining financial
statements are presented in each insta~ce where the City has
more than or.e fund of a giv.en type (i!.g. the En-cerprise
Funds). Individual fund statc!:",ents and £chedule-s are present
ed for certain individual funds a~d aCCDunt groups where thE
city has -only one f ... md of a. sp'?cific type (-e.g. tne capital
Projects Fund) or to give more detailed information than is
presented in the GPFS.
STATISTICAL SECTION~ This section presents comparative statistical
data for the past. ten years ,1r.d other pertinent information
involving taxes, revenuE'S, expenditures ar:d bonded de-bt.
S!NGLE AUDIT REPORTS:
Reports relating to
programs.
CMR:102:93
This section includes the Single Audit
t.he City's federal financial assist3.T"lce
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This comprehensive .I\nr.ual Financial Report reflects the dedicdtion
and effort of the staff me~bers of the Fin~nce Department.
especially deserving of recognition are Carol Ferrell, Linda craig,
Flora T2:eng~ Claude Pascual, Tony Sandhu, Robprta Wiseman a;nd
Jennifer Chang~ The help of Mary Divinski and Bob stith is also
gratefully acknc~ledged, in secretarial support and printing. along
with Jeremy Hopto~it7s assistance in comp~ter graphics~ Finally.
ackr!owledgement s!1ould be given to the City council Finance
committee, whose direction and support are essential in the effort
to continually irr_prove financial reporting.
Respectfully submitted,
~l/!#&n£J ~.r -tor of Finan
J leming V Manager
CHR:l02;93 xviii
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: &Lybrand
REPORT OF INDEPENDENI' ACCOUNTANTS
Hooorable Mayor and City Council
City of Palo AltD
PaIoAltD,~
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We have audjJ<d ~ accompanying general pollPOSO financial =menu of !be City of Palo Alto,
Califomia (!be City), as of and for !be year CIIdcd June 30, 1992, as listed in the financiaI sectioo
of !be labIe of OOIllmts. These general pulJ)Q'e financiaI 5IatelIICIIts are !be respoo.!ibility of the
City" management. Our rosponsibili1y i. 10 cxpras an opinion 011 these financial _IS based
DO our audit.
ExIZpt as dillcuued in the foIlowing pongraph, .... COIl<lueted our audit in ~ with geDCr.Illy
""""l""d auditing SWldards, 1bosc otandanIs require dial .... plan and perform ~ audit to oblain ..........we assuranc:e about _ !be financiall!l3lem<o!ts ate free of matz:riaI misstaiemenL An
IWdi1 iDcIudcs examinin" 00 • lest basis, evidcIlce SOlppOI1inc the amounlS and disclosures in the
fiDmciaI IQIelJM'DIS. At! audit also incll>des 8SICSSini !be ...... mn", principles used and signifcan(
esrirnatH made by management, .. well .. ovaIua!ing !be ~ financiaI _I presentation.
We believe thai our audil prov;des • =>onable basis for our opinion.
We have been unable to satisfy ouneIves am=ing a substantial poniOll of the report«l oost of
property, plant and equipment in the Genetal Fixed Assets Account Group !>e=lse <Id.ailcd r=rds
and documenlZlion of historical and esti~ h\sloriCil costs ate DO( :available, Th. City" records
do not pennit the application of adcq\l3le OlJdit pruocd= zqarding ~ ~ eosI of ~
property, plant and equipment included in ~ Genetal Fb<cd As.tets ACXOUDt Group .
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III our opinion, except for the effects of such adjustments, if "'y, a.; might have been detemti1>ed
10 be neces.sary had we been able to "'nsf)' oo=lves reg...-ding the reported ce'! of the City'S
property, plant and equipment, included in the General Flxed A>sets Acccunl Group, as explained
in lbe third _raph, the generr.! pwpose fuwtcial statements referred '" in the fmt paragr""djlh
present fairly, in all material respects, the financiai positioo of the City of Palo ."Ito, California,
as of June 30, 1m, and the results of its operations and cash flows of its proprietary funds for the
Y"'" then ended, in conformity wiill generally aaoept.ed accounting principles.
Our audit was made for the pwpose of forming an opinion on the geneilil purpose financial
statements taken as a whole. The cembining, individual fund, account group fjtwlciai statements
and other financial schedules listed as 'Supplementary Data' in the table of conte:tts are presen!ed
for purposes of additional analysis and are nO! a required part of the general purpose financial
slalemonts of tIvo Cit!. Such infonnalion has been subjected 10 lbe auditing procedures applied in
the .udi! of the general pwpose financi:J.I statements and, in our opinion, excepl for the effects of
such adjustments, if any, as might have been determined 10 be necessary had we been able to satisfy
ourselves regarding the reported cost of the property, plant and equipotent, as explained in the third
paragraph, such information is fairly presented, in ill material respectS, in relation to tho general
purpose financial statements ta1:en as a whole. Information contained in the mtistical tahles and
schedules listed as 'Statistical Section (Unaudited)' in the table of cont=nts has nOl been audited by
us, and accordingly, we express no opinion thereon.
Menlo Park, Qi1ifomia
November 6, 1992
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COMBINED flNANCIAL STATEMENTS
These statements provide an ovemew of the financial position and the operating results of aU fund
typeo and a=unt groups. Separate columns ~ used for each fund type and account group.
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CITY OF PAUl ALTO
COMBINED BALANCE SHEFrS • AU FUND TYPES AND ACc"'OUNT GROUPS
lUQt 30, to;Y2
(HI thou.;aods of do!Ian)
Q2~mllil EI.!nIb
Speciti Deb< -~ ~ ~""'_debi"" Cuh aDd iaveItmezwJ; $22,187 $ 7,413 $ 5,526
It.eceivabLm, Bet:
""""""'" 3,795 ,. 8,051
hI_ SOl 121 28 N_ l,O!1
Due from ocba-fwd .1uIvmooo to _ fwd 441
SIOftIJ :iDvmIorie. 1,042
P:qWdexp<moo
P:nporty, pIaal ODd ~' ...
.Amount availabje b' IIt::tVice
.Amouat to be provided for ~ of ~ """ ...... -Total atuJd:s md o(ber debits ~ ~ JIl,60S
Uah!1itIes:
AccoantI pyJlble and ICCf1Jed. liabilities 2.:340 11~ 1
Alx:nJed _I.ncs and ~fita 1,318
DeferTed ...... 245 7,995
Deferred rmnpm..w..
~ Wii I "tee! abscaccs
A=uod ... r-...,
Due. to Palo Alto R.ecnciou. F ouadatioa
Due tG ocha-Iuod 230 ..uv..... from .-.J Nod
Gca<nl obUptioa boodo 1tewm>o_
~ c( pctkipatian
Special if debt 'With ZOVemme:a.taI
"""';tmmI
c..pda1 '-obIlptkas
TObllilbilitie& ...lJm ~ ..!..UZ Coouu_ mel ............... (NOUll).
hod equity oM _ ....mls:
Coatn1Med c.pitll'
I:r!~ in rrneral fixed assea
AetoiDod ......mg.
Food bolaoca,
Raen<'" fu.o _ ODd reoppropriatioo 3,163 1,878
N_ 3,087
Advooceo to o<b:.-fund 441
Storal iavCll1Orie8 1,042
-"""'1)''''''-2,166
DebI....-v'ooDI! 5,373
U..........od; _pW.od;
SUoctI ad aidowalbIlIICbool &.itt projects 485
c.pital and IIpecial I'CV«IUC prujt:!CtI. 11,366 6.116
~ 5,000
Uod<o;......,.t
A ..... mn'.!M deficit ....J7..MJ
Total Nod equity CId 00... ore<li,. 24259 ...!Q.llii -.UU
Total &hilitie., Nod equity Illd other credits $28 In ~ $11 60S
The accompanying DOtes are an in1C'zra]. put of I:btse oombined fioandaJ &tatemcots.
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$6,670
5&5 I
2 . .'C I
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1,157
86 I
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6,242-I
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Fiducia,y Accounl Q10UDS ToW. j Proorimo: ~~ EImIII ~ G.......J (M~OoIy)
11 In ....... T"", aad FilItd Loaa-Term lAAC )Q
i fntrmri= &milo AGQSi:£ .Am!!. 11<!1! .l22.l 1m
I: -$97,5% m,m ro,"'" $IIl2,~ 1!4t,4S1 P ! 13.270 125 25"," 26,8()&
" 1,486 284 1 2,m 2,580 >, 3,m 3.645
" 130 ,
447 2,667 ,i 123 1,165 1,230 ~ .., 192 I' lO6 1,!25 ~, 1~1,579 1,099 $106,215 275,8'J3 264,424-H .$ 5.313 S,37J 4,053
-, JU21 -1U!Z --1!.m ..,; ~ ~ ~ ~ ~ ~ ~
',m 412 II 10,663 11,093
537 576 ~:lli 2,180
8.179
21,761 21,767 19,042 ~ 331 ~,979 7,310 6,747 -1,011 5,984 (-'" 6,021J
131 131
230
447 447 2,667
1,1SO 1,ISO 1,225
16.092 1'.092: 12,280
"', 7,670 7,670 5.125
8,229 1,229 8,649
-1.lli -2.lli ~ ~ -, ~ ..u..w A2!2!! 20,670 ...lUZj ~
56,705 5,1]8 '1,843 61.567
106,215 1315,215 101.731
192,703 8,584 201~ 176,796
., H,W 13.65~
3,087 3,645
447 2,667
1,041 1_109
1,166
5,373 4,053 -. 48S 632
17,482 9,833 -5,000 S,O<Xl
137 137 •• ~ --llliJ --IDQ)
~ -ll.m -1ll ~ ---ill.m -ill..lli
UZ£..W ~ $22 046 S106 215 ~ ~ 1470006
... ~ ''-ij·.':.J:,~·,
.~ 3 ""0'
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ern' OF I'ALO ALTO
COMBINED rrATEMENrS OF REVENUES, EXPENDITIJ1tES AND
CHAI"GEs IN FtND BALANCF.s -ALL GOVERNMENT AI. FUND TYPES
lor the year ...tcd.lli1De 10. 1992
(i:e dtouaodi of duli.srI)
~', TO'ab
(M-., Oa!y)
y.., Eodod
t, ,. SpooW Dol>< C.Wl J_ .lQ
l1mml am-~ ~ 00 l22l _:
,7· I'rnpat)' ..... S !,lSj $ 1,555 .$ 8,109
Specioi t> $ ... f94 I,OHi f Sako ..... 1-4.M3 14,100 14,140 , Utility UItI"S. CD .::1,:49 5~149 4,967
T'*DIic:oI i ) IU. 3,104 .3,1.04 2,969
Other toes aDd fiDea 3,358 $ 984 4,342 4,587
[i FiR )l'I'OIC:CtioG ad tmerJeDCY
3-'01 ~,561 comrmv;icatiOll ~ 3,908
From oIhl:r ~ 370 1,335 224 SI,OS] ~ 1,'Il
S«vi<:o ,.. IIOd p:rmibo 6,510 (,570 6,161 --2,063 541 229 2,1140 3,2n
~ : .. 1n __ ,Dd
(108) (108) (198)
""'" ..l.ill ....l&2 ~ J.ilQ
Tocal_ ~ ~ .MfZ .l.Q;U ~ ..u.m
E>peDdi-
Cuneo< opeostiooo:
AdmiaiJUatioa '-,519 1,5'" 7,8.30
~ Publle woob 7,129 7,13 S,g?]
Couummi'Y_ 3.313 3,313 2,881
Publk ..r.ty , Police 13,076 13,17' 12,867
Publk Mi"Y ' Fino 10.021 lD.1l7 9,762
-: Social LII!fVic« 11.116 11,'1' 11,D25
School lite apen.!.iora: 5,469 5,~ 5,164
Special ......... aod aopilal projools
Deb!: acn-icc:
1.9S9 4,65<) (,," 9,3Ql
PriDcipol-1,151 1.151 1,289 In ...... IIOd fioeaI_ ..Lill ...l.ill J.,I8;
TOC&l~ ~ ~ .l.2§.l ~ .1LZlJ ~
E..t.oe:ss of revcmIe!I over
(uDder) .. ".... .... J2.ZlQ) ...l.K1 £Ul!) CUW ill.1!Il ill.!lQ)
.~
O!her r.....a.., ""'""" ( ..... ):
()peraQnJ tramfCtll in 15,632 """ 2,790 20,162 23,63!
0pcnWl, """"'" out (2,944) (932) (3,J76) (9.114)
Procecd:i from boad saJeM 1,89& 416 1,314
Othu ...aw ->m>
To<al oIh<c ~ """'*
.:! (-) .J..M!! ..u.illJ .l&! .1.2Q!i .lLlli 14.447
&cea of teVt:DUeI sod odM!r
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~ JiIOUl"Ca: OVeT
( ...... ) upoodi""'" and
other~1I.\IIe8 4,458 1,186 1.320 (3") {,573 2,037
-, FUDd baJuota, beJUm.inj: of year 19,249 9.130 4,OS] 1,ZSS 3',687 36,535
.R..eF.dual equity tncmr i.n S62 SU 1,135 ... Rt:siduti equity trazu;fer out (622) ('21) (1.213)
Housing lmpJo .. ecta1t ProJram DOteI: ~
Fund' baIana::s. cod of y~ ~ ~ ~ ~ ~ SJ9 .87
The ~YWa DOIc& I.R aD integral part
of the5e oombiDcd t'iI!mcial .statcmeotli.
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CrI'Y OF PALO ALTO
COMBINED STATEMENTS OF REVENUES. EXP5NDITU1lES AND CHA.'JGES IN FUND BAl.ANCES
ElJDGET AND ACTU At -GENERAL, SPECLU, AEVENUE AND CAPIT AI. PROJECTS FUNDS ror the yeu a:lded ]~ )0, un
(m ch.DtJSallds of daIJIJ'S)
!J<amJ F!!OL ___ 5~i&l Reve&ue F und.s
Voriance Vuiano<
FMlnObIe F.yonbk---: ~ Am:aI aw.,:2!!l!lol ~ A<bIa! Q.lgfz:::QtIl!le)
Pn>pcrty t .... $ !I,395 S S,!S5 $ 160
SaIco ..... 13,935 14,93 758
ulilitr ..... · tax 5.230 5,.49 (81)
T~~tu 3.250 3,114 (146)
0tlJer-tax. aad fiDeI! 1.405 3,3511 (47) 1m S "" S III
Fire~1Dd
~iw.;,. oommlmicati oo
3,931 3.-(23) ....,.,..
FnJID OCher ~ 150 37. 2<l 490 1.Jl5 f;45
SoMce r... oad pormHB 6,589 ',510 (19) r-...,.... 2.003 1.0fi3 SS 41' S48 132 -oIwaeo .... (486) flG8) 31 •
O<bct ..1.ill ..l&Z -JlQ --lli -1.m ~
TotaI.....-.iLlli A11! ..t..m .LID ~ -Llli
E.pmdibns!
c.n...op:ntioas:
~ 51,835 I,5U 1,3Ui
p,.bJic woob 1.6n 7,1.29 I.m
~ eavito!lmc MOl 3,llJ lOS
Pub& AIoty • Po~ 14.I8~ lJ~$7i l,lll
PttbIic aafety -Fito 10.692 1t.121 66S
soo.J ecrvka 12,863 U,S1' 1,047
School lite openti.oaB 5,572 .5,46' 10l
SpecW '"""""" oad oapitaIl""i«U ----m ..l.m il.llil
Tottlapeodj ..... ~ ~ .Ml1 ~ ..Lm il.llil
UQIIIlI of RWCIClue8
<NOtC ...... )
...,...n-flMW .lUW .Lill ~ ..1.H1: _la
Otbor fmaacia: ........ , .... ):
0pen.tiDJ b'tmBfet!l in 16.614 1'.632 18
CIpen<iDa -oat ().sse) (l.J44) 606 (1.269) (931) 331
Prooerda from bcGd .sales
O<bct -ill2J ..m2)
T""" ""'" IiJJoDcinJ IOOI'C:eII (UIefj;) ~ .J.J.§Y ...ill !U@ .1LillJ ....1l!!I
aCCSl! of reveuW} aDd
~ 6naacm, IOW'OL!'*
0Ya' (UDder) expeo.-....... 00<1_
~'ll!Ja; 0.511) •• 458 8,036 760 1,180 4U;
Fuad baIaaoos. beoimtin, of >""' 19.249 H,249 51,13') '.1311 ~ equity tran3fec ill 562 562
Raidsal oquity trmafec out:
Ftft'I bUanceI. ax! of year Wolll lW§2 LWsi !9890 1!Uli ! 426
The accoD:lp&Dying AOCe8 are an integral part of these combined finaac:iallll&lemena.
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V"'-e V&rimce , F.vorable Fovunble
~i I!loIa<! A<IIaI CUanvOT'ahle) IllI4G! A<IlIaI ~~
fr J $ ',JOS $I,5SS $ 160 I~ ~ ~-~ lJ,91S 14,693 7SS
S,23O 5,149 (OI)
1 3,2S0 3,104 (146)
4.278 4,J42 64 • !
"1 3,931 J"cJS (23)
-' S IS9 $1,053 $ ... ... 2.758 1,750
6,589 ',570 ('9)
6 (6) 2,430 2,'11 J S1
(486) (108) 378
-1..ill ..J.I!j -ill
~ .l.m --ID .ll.ill .JM1J ~ -
~1,83S 8,51' 1,3'6
8,6n ',129 1,541 -, 3,008 3,31J 29S
14,189 U,I7' ',m
10,692 1<1,127 665
12,863 11,81' 1,047
~ s,sn S,_ '03 .. ~ ..u9I ~ ~ ~ -ill
..., .!.W -YS .kill 7J 004 ~ 7.046
!§.,§Z!) l:.l.m) ~ aLW) J!YH) .llJ.lQ ,..,
3,811 2,790 (1,011) 20,-425 13,422 (',()()J)
(4,819) 0,876) 943
416 416 416 416
--1mJ
<iii -=>
~ ~ £LQW ~ .l.UU --.llli)
(2.450) (J91) 2,05. (S,268) S,253 10,521 -7,255 7,255 35,634 35.634
S62 so:
~ ..1mJ --l§W -ill1l
.". wo: HoW ~ $JO J<)6 ~ 1l2.m
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CITY OF PALO ALTO
COMBINED STAtliMENTS Of REVENUES, EXPENSES ~ AN!) CHANGES IN FUND EQUITY
AU. PIlOPlUETARY FIJNI) TYPES
fer II» _ ..&.11 .... JO. 1m
em _ of <IoOon) ; T..w
(MtIiQOf1 dnm
QQ1y) I """""" Y..,EOOod
~ ~ l_ .K!.
...bo!IL ....flmL .1m 1m
~-I 0IiIiti00:
C w' ma" S109,163 $1",163 $102 •• n
City f, JtmeuII, 3,070 .!~t7a 3,014 w ___
$.995 !-"5 5.027 I SoMco ·CD ~ .... mirelJ ......... '. 375 37S m Qoarpo--$27.927 ;n,J27 23.!lO2
~--~ .J&t ...l..W
TOIIII .,......, ...-~ .11.m J.fUH .ill.W = 0p0nIiIw:r.=; --.00,545 46.545 52,2S4
~-'~ 5,'" 1.569 1.41J 6.n3 a ~(",..-,; 2.449 2.48 2,570
......... pioaIIIiq 3,332 3,JJl 3.969
~mI . 16,682 !.660 11,348 16,885
Oop;: ·ri .. ad~ 6.:!44 1,463 7.707 7.166 a Sdf'-_ 2,364 2.366 1 •• 75
Col 'ed ..... laid adw latefitll ~ ~ ~
TocaI..,...m.,_ ~ .z2..ill J.l!.ru .111.111 a 0pcnIi0f _ 0-) ~ .il.lliJ ~ JZ.l!2Q
~....-(-): ; --6.631 1,004 7.85 1,SS! --(832) (128) (KG) (1.039)
JoCaI 'ICDtIIre dek IIeIVic:e (6.939) (6.'3') (5.284) ChiD (loa) .. "'-' 01 __ (1.626) 110 ~1W (53) a Other i 1 ... .iDI:oaII -Ull -Z.lli
TOIIII ......... "'"" _ <_) ~ ~ J.ill -Ul$i
---~-..1U2l ~ ...tI.m ~ " ~......,...., ..
~-.. S32 532 890 0p0r0Dq _ out:
= --(16,145) (1~.145) (n.6S2)
Capital~_ (141) iUl) (79S) ----illZJ ---ImJ -1!!!!Q)
Net opmtiDc ~ .!lUill -..m .ili.ZMJ ~ a Nee IiDcome 21.3i3 3,118 l4,~1 16,099
-..... --... bopaiqof_ ..ll.Ul2 ~ .ru.m ..lliM2Z I __ --... "'" of year .!ZUll' ~ .mom J.1U2li
CoairihuIod ~. boPmiaa of yoez 56.690 4.sn ".5'7 59,581 I eo.un_
--il ---1&l -1!i .J.U!i
CoairihuIod ~, "'" of_ 56,105 -Ull ~ ~
Total fUDd. equity. CIId of 'ycar 1249408 l!1.722 swa ~ I
n.c. ac::coa!pUlym, DIXcI> are III interral part of tbe8e combiDod fin.mc.i&I .llafemel::Jt&. I
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CITY OF PALO ALTO
COMBINED STATEMENTS OF CASH FLOWS
ALL PROPRIETARY FUND TYPES
for the year ende<! 1une 30, 1992
(m thousands of dollars)
&terprise
~-c.sb nows prori4ed by (UW:d in) operaw. adi"itie5:
0pentiDg """"'" (1000) $40 •• 57
A.djust:mm1:9 to rec;oocile opera.tiDj: iDcamc (loss) to
oct cash provi<!ed by operati:n, activitiea:
Depc-eciatioo md. ~oa 15.244
0lmJCta hi uaet8 me! Liahilitiea:
r>recrea. (1:I2CRIaIC) iD rcct.ivablr.s 329
{Incteue) ill stosu mvmtor..-
(Ia=ue) -;" p<q>Ii4 .. _ &03
b:nue (dccr.se) in.ccoLlZlls payable, ~
IiIbilitiCi aod ac-.c:ued sa1a:riea and. bebefitl (1,407)
IncRUC (dccreae) in campen •• ed abseDc:eI (3)
Inctea8e (cIecn:..) :in ~ aelf-iMunmce -122
Net cash provided by openting activities .£.ill
Cub &wi prorided b1 {used in) ooocapitrJ rlnaftci.nI actiri6es:
Ope:ntiaa: tlmsfen out co other f\mda (16.818) 0pentiDg _ ia from 0lIl« fw>d.o
Nee "'''' ~ by ( ..... ..<1 io) """"""tal liamciar IICCivitis 06,818)
CAsIt n-. pnmcW by lased ia) capitol &lid r<IaI.ed
r~ &d:iritiea:
kqtUsitiOD UId: coastNctioa of c.pital .asaeQ (12,255) Bonowinp _ capital Ieuoo
PriDapal poid ... ......,.,. boDdo (690)
"""-" of ..tuodlnl_ 4,502
Pa~ IiO eICtOW qeae
PriDapal poi<! "" capilaluod ...... (IS)
lnteiat paU OIl revawe boods m4 capital k:aaci (7,771)
""'" """"""',.., .... <loa) (1,'Ui)
Coambuted capital 15
AdvaDce (10) from Genen.I FUDd J.LTIQ)
Nel ca&h providtld by (~ il'I) capltMJ relau.J
IIcti vi I ieI: ~)
Cub nows JWOridtd b1 iD.esti.ae adiTities; wterat aCId dlvideade OIl pooled iDVC'StDletlbI .illi
Net ::a."Ib provided bJ investing activities ....f...§.1I
Net iacreue iD cub, ~ equivaleu:s ud ..-.ub
with fi.Jc&I aemts 17,385
Cash, ..w. equi_ aDd .:ash will> rosaoJ ,,_,
~ begic.n.iDe of Jou
Cash, CISb equiv ....... aM czsh with fls<aI_,
~ eodofyeat
The AIOOOmpIlDyiJlI Dotes are III inlernJ part
of tbc:ae combined financ-ial IWemcots .
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s..v;",
_E!!rUL
5(1,501)
1,463
(138)
(2)
116
(120)
566
~
..LQ§Q
---1ll
-ill
(2.<37)
( ..... )
,128)
3,241
261
-----ill
--1..92:!
--1..92:!
3,14.'i:
11 757
U£.22O
ToWs
(M~Only)
):r.r f.JI~ ~!mS; iO
1m J.22l
$ 3'.3" $27,030
1,m 1,166
UI 1,264
(2) (12l) 'I' (207)
(I~ 2,001
S&3 362 -m ~
..Mom 37,0&5
(1',318) (15,337)
-..ill ---.m
~ lliMD
(14,692) (17,906)
2,262
(690) (967)
4,54lZ ',65<l
(11,180)
(46:l) (256)
(7,899) (',352)
1,615 2.281
27' 1.986
...iLlli) --1l
illJ!!IJ a!!.ill)
...l..ill ...1.ill
_Lm ...1.ill
20,530 9,1&5
--'1.m Am
!W&§ $97 %S
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CITY OF PALO ALTO
E.XPENDABLE TRUST FUNDS
COMBINED STATEMENTS OF REVENUES, EXPENDITURF.8
AND CHA-"IGES IN FUND BALANCES
for the JI"4l" ended June 3<J, 1992
(10 thousands of dollars}
Total,
Year Ended
June 3Q
1m
~veo .... :
Interest earnings S 4
Other revenue --S!
Total revenues ...M
Expenctitu .... :
Publk safety 10
Social services ---1
Total expenditures -ll
Excess of revenues over expenditures -~
Fund balances, beginning of y= ~
Fund bru3ncts, end of year WZ
The =mpanying nOl<:s are an integral part
of these combined financial statements.
10
1221
S 1
..ill
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CITY OF PALO ALTO
NOTES TO COMBINED fINANCIAL STATEME."'IS
June 30, 1992
(11\ thousand. of dollan)
1. Summary of Sjgnjfigmt Accmmting Policies:
The 3C<XlWlUng policies of the City of Palo Alto, CaIifornt>. (the City), conform to
genenlly ~ accounting principles as applicable to governments. The following
u • summary of the more signifiC3llt policies:
Gow:rnmt:nIal 61Ui o"rr Wlwle4 in the Cdn(ral i'J4roorC Fintmrjal
StqtfJ?rtntf
All significant activities and arganizatior.. for which the City has the ability to
significant! Y influence operation. and ""em.. overnght responSlbility !!ave beec
included in the City's gener.aI purpooe financial statements. The following crium.
rogan!ing manifestation of overnght were con:ridered by the City in evaIuation of City
organizatiOllS aJ'.d activities:
• FiIwIcial intenlepcndeocy -whether the City receives financial support or
provides financial benefit to tile organization, u responSIble fo< or has directly
or indirectly guaranteed the organization'. debts.
• Authoritative appointment of governing authority -whether the City Council
appoints the organization's governing authority and maintlins • signifiC3llt
continuing reIalianship with the governing authority pertaining to the public
functicns of the organinltion.
In<:luded within the City's financial reporting entity are the City of Palo Alto Golf
eour.e Corporn.tion and the Palo Alto Public Improvem""t Corporation. A1tho"gh these
entities are legally separate fro", the City, the City', elocted officials have a continuing
full or p.utiaI overnght responsibility and have ru:coontability for fiscal matters of these
otIler entilies.
Continued
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Cc:V OF PALO ALTO
NOTES TO CX)! -3INED FlNANCL"J. STATEMENTS
lune 30,1992
(in thousand. of dollan)
1. Spmman of Significant ACCOYPbne Ppljde" contirluaj:
City of Palo Alto Golt Course Corporation
The Golf Course Corpollllion ..... established in 1977 to finan~, acq.m,
coostruct and improve l public municipal golf OOUI'>C and recreation facility in
the City. The golf COUI'>C construction was completed a.od the City continues to
maintain and "l"':.ue tJ-,;: facility_ Oper.uing activities of ~"e golf course are
included in the activiti .. of the General Fun~, while debt service payments are
r=rded in the Debt Sen;"" Fund and interest income and expeme are ,.,.,.,,-ded
in the Special Revalue Fund.
Palo Alt. Public Improvement Corporation
The Palo Alto Mill: Improvement Corpollllion (the CorpotatiOll) was established
in 1983 10 fina.."'Ice, acquire, construct, improve and lease or sell real or personal
property for the benefit of residerlts of the City and surrounding areas. The
Corporation has completed the improvem""t and repair of the Palo Alto Civic
Caller. The Corporation is cumntly leasing the improvements to the City !o<
a 23-year period through Tune 2006. The debt service payments for the
Corporation are inclUlled in \he ""tivities of the Debt Service Fund while the
I<ase and interest income and expense are incltlded in the Special Revenue Fund.
The operations of the Palo Alto Housing Corporation, Palo Alto Senior Coordinating
Council, Palo Alto Child Care C<>rporntion and Palo AlID Unifi«l 5<:hool Disuict are
not put of the defined <eporting entity and financial infO<mation for these agencies is
not included in the general purpose financial statements of the City. Each of these
agencies has an independently elected g""emi.", boanl other than the City Council of
the City of Palo Alto and the City does not influence their operations significanll y.
The City's management has tna<k a preliminary !'eview of Governmental Accounting
Standards Board (GASB) Statement No. 14, "The Financial Reporting Entity', and docs
no! anticipate any <:hange ro the current reporting presentation.
12
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(m thousands of dollars)
I. 511mrnaty of Significant Accrnmtj!lg Policies. co~tirl'aed:
Basis ofPrew!latjml -flIn4 Accgundng
'Ik basic accounting and reporting entity Cor the City is a "fund." A fund is defined
as an independent fiscal and a<XX>W\ting entity "ith a selC-balancing set of a.:rounll
recording r<SOun:es lOgether with all relaled lW>ilitie:!, obligations, revenues,
expenditure!, IeSerV<S and oquities, which are segregated Cor tile purpose of carrying out
specific activiti<S or attaining c.erWn objectives in acc:or<W>co ",ith special reg'JllIIioos,
restriclions or limilalions. 'Ik varioos funds arc grouped in the generu purpose
financi;.i _15 in this report by generic fund types within three broad fund
catqoriH and two acwunt groups as follows;
GOVERNMENTAL FUNDS
(dn(rnl F!ind: 'Ik GoneraI Fund i, the general opetaIing fund of the City. It
is used 10 account for all financial resources committed to financing the services
that the City performs for ill citizens, p.xcepl U!ose required to be accounted for
in anoIher fund.
$pcr:iaJ Bevenue F\m4r: Special Revenue Funds are used 10 account for the
proceeds of spectfic revenue sources (other than agency funds oc major capital
projects) that are Iega!ly ='.ricled 10 expenditures for specified purposes O!' fer
which sep;<rate accounting is required by a.:lrninistnltive action.
rue $eryjce FN: Debt Service Funds are used to accou.ot for the
accumulation of """"""'" for,. and the payment of, general and special
assessment long-term obligation prir.cipal ar,d inte:est, other than obligation.
payable from Proprie:ary Funds.
CqpitaJ Projern fund: The Capital Prt'jects Fund is used to account for Iinanci4I
resources 10 be used for the acquisition or (':(Instruction of major capital facilities
(other than those financed by Proprietary Fund, and Special Revenue Funds).
Continued
13
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cny OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEME.'lTS, Continued
lune 30, 1992
(m thousan.:!. of dollars)
1. SymmaIj' Qf Sismjficant Accounting poljcies, continued:
Bgs" QfPresentation -Fund Accounting. contL'1ued:
PROPRIETARY FUNDS
Ente!J!M fI!n4s: Enterpri> Fonds are used to account for operations (al tl1at
are financed and operated in ., :nanner similar to private business enterprises -
where the intent of the gO\l.min, body is that the oosu (expenses, including
depmciation) of providing goods or servi= to the general public 00 a continu!ng
basis are ~ or r<eOrded primarily through wer cha:] .. ; and (b) where the
governing body has decided that periodic determination of revenues earned,
expmses incurred, and/or net income is appropriate for capital maintenance,
public poliey, management control, accountability or other purposes.
ll!lema/ Scrvi" FIUlds: The Intmlal Service Funds are used to account for the
financing of goods or serviceo provided by one department or agency to oth<r
dejl&rtment> or agencies of !be City on a oost-reimb=ment basis.
FIDUCIARY FUNDS
Agt!J()! FII1IIIs: Agency Funds are used to account for asset> held by the City in
a tru.s.tee capacity or as an agent for individuals, priYate organizations, other
government>, andlor other funds. Agency Funds are custodial in narure and do
not involve measurement of results of operations.
Erqem:lab/t Tru,rr flmd.r: Expendable Trusa.Funds are filnd, for ",hieh principal
and inten:st may be expended in the C'OUne of their designated operations. They
are accounted for in essentially the same rnar.Jlet as Governmental Funds.
Continued
14
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CITY OF PALO ALTO
N~ TO COMllINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(in thousands of dollars)
1. Summitt of SiJ1'ific.wt AccoUntipg Pplicle$, rontinued:
BJJiii.JIf Pre.senlatiQlI -Fund AlY'Qunrinf. oontinued;
ACCOUNT GROUPS
G:neral Fjg4 d sSfC$ dCCQWI1 Group: This account group is wed to Ir.alntain
control and cost information on property, plant and cq wpment owned by the
City, other than that of the ProprieWy Funds.
GmmJlLpnv-T<:rm Deht AcmWV GrQup: This account group accounts for iong
term deb! not m:onded in the Ageney or Proprietary Fund •.
Ba<jt gftlcepunring
The modified accrual basis of acccunling is followed by the Governmental, Expendable
Trust and Agency Funds. Under the modi lied accrual basis of accounting, revenues are
recorded whee susceptible to accrual, i.e., both measurable and available. Available
means colJectlble within the current period or soon enough thereafter to be used to pay
liabilities of the current period. fupendiwres are recognized when the liability is
incurred, oxrep! for interest 00 long-term debt which is recorded as due.
l!! applying the "suscepbllie In atCTUal" concept to intergovernmental revenues (grant
revenues), the legal and contr.lctuaJ requirements oi the numerous individual programs
are used as guidance. ThL-n: aro, however, essentially two types of these revenues, In
one, monies m">t be expended on the specific PWPO'" or project before any amounts
will be paid til the City; therefore, n:venues are recognized based upon the expendiwn:s
recorded. In the 0Iber, monies are virtually unrestricu:d as to pwpose of e.pendilure
and essentially irrevocable. These resources are reflected as revenues at the time of
receipt.
Continued
IS
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, C'ontinua:!
June 30, 1992
(m thonsands of daUan)
1. Summary of Significant Acccynting Pohcie:;, contir.'Jed:
B4tis o(AccguntirUh continued:
Licenses and permits, state gas !aXes, charges for services, forfeitures and miscellaneous
revenues are m:ognized as revenues when receiv«l b<cause Illey are gen=lly not
measunble until actllaIIy receiv«!. Property !aXes, sales !aXes, motor vehicle fees, fines
and ea."'lIed gIant entitlements are accrued on the modified a<eruaI basi. (when they are
measurable and available).
All J."!"j>rieWy funds are ao:x:oonled for using the a.:cruaJ basi. of accounting. Revenues
are ~ wnen earned, and expenses are rerogni2ed when incurred. Unbilled
utility revenues and related expenses are accrued at year"""d using a proratioo of ~ie
number "r billing days applicable Ie the cutreIlt year.
InIereSt on bonds, ptoceeds of whicb ore us«! in fmallcing the COfISIruCtion of certain
assets, is capitalized during the construction perind net of interost eanied on the
investment of unexpeMed bond proooeds.
A~ Budatt and Budgetary Cootrol
The City Council is required Ie adop! a budget resolution em or about 1u1y 1 of
ea.::h fiscal year for ali Govemrnenlai and Proprietary Funds. These budgets are
adopted and presented for reporting PUlpOses OIl a basis consistent with generally
ac<qJIed accoun ring principles.
The level of approprialed budgetary OOIltro! is the department/program, and
major object of expenditure. The City Manager may authorize transfers of
appropriations wilhin a I\epaltmental appropriation. Supplemental appropriations
during the year must be approved by the C'ity Council by no less than a two
thinIs vole. Unexpended or unencumbered appropriations are appropriated Ie
fund balances, except ior capital proj eels which are c=iod forwarn ur.tiI such
time as the Pl""ject is completed or abandoned. A capital project is deemed
abandoned if two years p:;ss without any expenditure from the appropriation.
Continued
16
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en"'Y OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1m
(m thousands of dolLars)
i, s..uwxwuy of Sjgnificant ACOQllDting Policies, contin:Jed:
Basis Q(Accmmting, continuec!:
Casb and Investments
The City maintains a cash and investment pool thill i. available for use by all
funds. The balance in the pooled cash accounts is av;uUlble lD meet current
operating requirements and any cash in excess of current requirement! ill invested
in variouJ securities. For purpose' of the statement of cash flows, all pooled
cash and investments in the Proprietary Fund. are treated as cash equivalents.
Investments consist mainly of government securities:, and are stated at the lo'Nef
of aggregate COSt or mar~ value.
Receivables
Property Ia<", receivable for the governmental fund types which have been
conected within llixty day. following year-end are ronsidered rneaswable and
available and are recognized as revenues in the funds.
Receivableo foc federal and Slate grants and federal entitlements are recorded ....
revenue in all fund types as authorized reinibursable ""penditu,.. are made.
Stores In.entorle!;
Materia!.s and ""Pl'lies are held for consumption and are recorded at the lower
of av""". cost (which approxirru;tes firsI-in, firsI-<lut basis) or market. The
oor.sumption 1I'.ethod ill used to i.C"-<>U!It fo, invenlDries. Under the ronsumptioo
method, blVentories are recorded as expenditures when the invenwry items are
used.
Continued
!7
"--Pl!!1JIIII!III!~--' .----
CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(in thousands of dollars)
1. Summary Qr Sj&"ifki AccouOting Policies, continued:
Bq.rir Q'6«QlIlllinl, continued:
Property, Plant and Equipment
Property, plant and equipJnelt in the General Fixed A=ts Acrount Group are
stated at historical cost, or estimated historical COst if actual historir..al cost is not
a·l'OiIable. Property, plant and equipment acquisition. are charged to expenditures
in the governmental fund types as purchased and capitalized in the General Fixed
Asset! Account Group. Maintenan<:e and repairs of property, plant and
equipment are charged 10 «penditures in the governmental fund types as
incurred. Expenditures for public domain (infrastructure) general fIXed assets
su..::b as roads, bridge ronstruction, ,,;dewalks, curt>" gutters and draioage
sysrenu are Dot capitaliu<! as property, plant and equipment. Upon disposal of
propeny. plant and equipment, the hislorical cost or estimated historical cost is
removed from the General Fued ASSI',u Account Group and any proceeds from
sales are generally reconled as revenue in the funds originally acquiring the
assets. Depreciation is not compuc.d on the assets capitaliu<! in the
governmental fund types.
Property, plant and equipment in the Proprietary Fund Types is capitalized at
historical cost or estimated bistorical oost when historical rost is nO( available,
or the estimated fair market value at the time received in the case of gifts or
projects constructed by others and accepted for ownership and maintenance by
the City. Significant interest costs inClJrred under restricted tax-exempt
borrowings 10 finance the construction of proper!), plant and equipment are
capitalized during the ccnstruction period, net of interest earned on investment
of the proceeds of such borrowings. Maintenance and repairs • .re exponsod as
incurred. Depreciation is computed and ch>Iged as an expense against Qjl<n!ion,
u.;ng the stIaight-line method over the estimated useful lives of proprietary fund
property. plant and equipment as follows:
• Vehicles and heavy equipment -3 10 10 yean
• Buildings and structures -25 to 60 years
• Machinery and equipment -10 to 50 years
• Transmission and distnbulion equipment -10 to roo year.
Continued
18
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CITY OF PALO ALTO
NarES TO COMBINED FINANCIAL STATEMENTS, Conth"""
June 30, 1992
(In thousands of dollars)
1. Summary of Signjficant Ac;rounpnc Policies. contiilUed:
Basir nfAccmwiu. continued:
Speclal 1."""" .. " .... "15
In accordana: with Governme:llal A=unting Standard. BoarII (GASB) StaWnenl
No.6, • Accounting and Financial Reporting for Special Assessments,' the
c:onstruction of public improvements and the provision of service; finance<! by
special assessments ~ reported ill the fun<! type <hat best reflects the na~ of
the transaction. The City acrounts for resources available to pay special
assessment debt in its debt service funds, The special assessment obligation is
included ill the g""er.ol long-Cer"., debt account group.
A5sessments are recogniud as receivables at the time property owners are
assessed for property .mproveme:lts. Current assessments receivable expectOO
to be collecled soon enough after year-end to meet liabilities of the current period
are considered measurable and available and are generally recogniu<l as
revenues. All other assessments receivable ($7,995 at June 30, 1992) are off ...
by a deferred revenue account. Interest on special assessment levies is
recogniud when due, in accordance with the modified accrual basis of
accounting employed by the Debt Service Fund. In the event of default by the
property owners for cenain districts, tile City is obligated to cover the shortfall
in order to !!'.ake fr.e debt paymenL Those districts created after the passage of
Propositi"" 13 may have !heir own reserves which would be drawn OIl in case
of default by property owners.
Compensated Absences
Vacation and sick pay for all City employee. is accrued and paid in tl\e
Enterprise Foods and the Gener.ol Benefits and InSllmlCO Internal Service Fund.
The General Benefits and lruurnnce Internal Service Fund is reimbarsed Ihrough
payroll charges to all other funds. Earned but unpaid vacation and overtime
compensation pa,y is recognized as atl exper.se or expetlditure in the proprietary
Cor-tinued
19
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMFNTS, Continued
Jun. 30, 1992
(In thousands of dollars)
Summao Of SieniDca.."lt AccountiOe PPlicies, continued:
Baris pfA@untfn" continued:
ComPODSated Absence!, continued:
fund. and governmental fUrKb when earned because the City has provided
finonoial resources for the full amount through its budgetlry process.
Accumulated vacation and overtime compensation pay amounted 10 approximately
$4,379 for all funds at June 30, 1992_ Vested accumu!ated sick pay is paid in
the event of rezn,ination due to disabilil)l and under certain conditions specified
in employment agreements primarily restricted 10 individuols with fift<en or more
yean of =tinuous service. An accrual of approximately 52,931 at June 30,
1992 for vested aa:umulated sick pay is included in ~ llidlilities of the
Enterprise Fund. and tho_ IIlIerna1 Service Funds _ No acctu>l is made for
nonvesting 3IXUmulated sick pay of employees with less than fitt.en yean of
continuous service.
Lon&-Tenn Debt
Unmatured long-tenn debt di=tly related to and expected 10 be paid from
ProprieWy Funds is ir.cluded in such funds. All other unmatured long-term debt
is recorded in the Ge.>eral Long-Term Debt Account Group_
Bond discount costs resulting from revenue bond issues are amortized over the
related debt repayment periOd ."d approximate the in!erest method of
amortization. Unamorti%ed bond discount C05ts are offset against bonds payable.
Cootributed Capital
Contributed capital i. an equil)l account in the PropriCtlry Funds which shows
the amount of pemunen! fund ""pital contnbuted 10 the fund from general
government revenues and resourres Of, in the case <Jf Enterprise Funds, by
subdivision developers and builders.
Continued
20
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(In thousands of dollars)
1. Summary of Signjficant Acrounting Policie!. continued:
Bqs-is qfAccqunti~. cootinued:
Reserved Fund Balances
The reserved fund baJan= for GovernmenLal Funds represent amoWlts !hat ha,·.
been legally identified for s;>ecifie purpooe<.
Eon1mbrauces
Commitmf7Ull for expenditures in the Go-..-ernmenW Funds are r=rded as
rosen .... of fund baIan=, which indicates !hat. pomon of fund balance has been
oegregated for expenditures upon vend"" performance.
Flmd Bal.",.... Deslguated for Subsequent Yean' ExpeDditures
Tenllllive plans for utilizatioo of fund balances in future periods are m:orded as
dMignatioos of fund baLances. Planned expenditures include uncompleted
construction contracts and other commitments for which fund balances have not
beeo appropriated or specifically segregaJed. Such plans are subject Ie change
and It.erefore the designaJed amounts may never be legally appropriaJed or resu1t
in ''''penditures.
Proporty Taxes
Property laXes allaCh as an enforceable lien as of March I. Tues are levied on
1u1y I and are payable in two inst.allments. The fin! instlll1ment is due
Novem1>er I and is delinquenl if not paid by Decem1>er 10. The second
instJllmenl is due February 1 and is deilnquenl if nO! paid by April 10. The
County of Santa Clara bills and collects property laXes and remits them to the
City in inst.allments during Ille year. City property laX ""'enDeS are IOCOj;nized
when levied 10 Ille ""lenl that iIley result in • current receivable, by having beeo
ccllected by the end of the current fiscal year or willlin 6(J days !hereafrer.
Continued
21
CITY OF PALO ALTO
NOTES TO COMllINED FINANCIAL ST ATEMEl'o/TS, Continue<!
Iune 30, 1992
CUI thousands of dollars)
1. Suromaq of SimifiyuH ACCQuotivr POlLdes. conti.1ued:
Rgdr :Q"Accqun#ne. continued:
"""perty Taxes, continue<!:
General property tax .. are based either on. flat 1% raIe applied to the 1975-76
full value of the propeny or OIl I % of ~'Je sales price OIl sales and construction
which occum:d after the 1975-76 valuation. ASleSsed values on property
(exclusive of it>cr<ases ~ to sales and construction) can rise at • maximum
of 2% per year.
ToW CohunDs OD G--neraI Purpos< FInanciaJ Statements
The total (memorandum only) columns en the genera! PU1pOse financiaI
statement, represent the aggregate of the colu mnar statements by fund type and
account group; they do not represent C<msolidated financial information and
interfund ttansaetions have not been eliminated from the toaIls (memorandu m
only) columns. Data in the toaIl columns are presented only to faciIiwe financial
analysis and do !101 ;msent financial position, results of operuions, or cash flows
in conformity with genemI1y accepted accounting principles.
Comparative Data
ComparoUive total data for the prior yea.-Oas been presented in the genera!
pU1pOse financial Sllltements in order to provide an UUldemanding of changes in
the City's financial position and operations. However, comparative data (i.e.,
preseolalions of prior year totals by fond) have not been presented in all
statements because their inelusion would make certain statements unduly complex
and difficult to read. Certain amounts from the prior year', financial statements
have been recl.IISsified to conform to the current year p=tation.
Continued
22
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CITY OF PALO AI,TO
NOTES TO COMBL"ffiD FINANCIAL STATEMENTS, Continued
1une 30, 1992
(in :housand, of dollars)
2. Changes in Basis of ACC9Url1in.;;:
In tiscal year 1992, the City', reselVe fo< capil3l projects, reported as "Designated for
Capitll Projects" was reclas .. <ified from the Capil3l Projccts Fund to the General Fund.
The ~ had in the past been funded from any fiscal year Gefleral Fund op.'ntional
surplu5, after providing fo< the required General Fund reserves. The reser,'e W35
available for additional capital improvement projects, general progranu~ C!' any fiscal
year GefIeraI Fund operational deficit, as awropriated by Council. The pilrpose of the
reserve remains unchanged, s.ca ..... of it5 funding source and utilization, L'll5
designated fund balance is more appropriatcly reported within the General Fund, The
"""""""y adjustment5 in fund baIan= have been made for 1991.
Also in fiscal year 1992, $1,561 of the Refuse Fund landfill closure project costs were
expen.oed as current operating costs of the Refuse Fund as recommended by the
Govemmentll Accounting Standards Board in their proposed 5latmlent, "Accounting for
Municipal Solid waste Landfill C1"",,,, and Postclosure Care Costs," Included in this
amount was $380, representing the undeprecialed portion of =ets related to landfill
closure requin:ment5 regulaled by .slate and federal law which had previoll3ly been
capitIIized in the Refuse Flmd. Future landfill closure costs will be recognized as
operating e>penses as incumd.
In prior years, the City recorded loans marle !O citizens under the Housing Improvement
Program as expenditures of the Special Revenue Fund, The SUbsequent collection on
these loans was recorded as revenue of the Special P.,,,enue Fund. In fiscal year 1991,
the City chose !O _ all outstanding loans ($1,193) as notes receivable and, at the
dale of change, recorded a related increase to the Special Revenue Fund balance
aa:ount. Future collection 00 these notes will serve to reduce the individual note
balances and associated interest income will be m:ognlzed,
Continued
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
lune 30, 1992
(l!l thousands of dollars)
Cash and Investments:
A. a cllartet city, the Cit)' manages its pooled cash and investments under the prudent
investor" rule. Under the City's investment policy, investments are to be made with a
level of judgment and care, under the circumstances then prevailing, which independent
investors exe:-cising a level of prodence. discretioil, and intelligence wou1d utilize
COIlsidering the probable income as well as safety of their capital,
The City reviews and amends its Investment policy on an annual basis. The CilJl's
investment policy was last amended on June 22,1992. This policy authorizes the CilJl
to invest in ohligations of the U.S. Treasu."Y and U.S. agencies, certificates of deposit
and negoIiallle certificales of deposit, bankers' acceptance noles, commercial paper, the
Stale Treasurer', Local Agency InVl:$tmoot Fund (LAlF), repurchaso agreements, CilJl
of l'alo Al:o Improvement Bonds, money maru. accoonts and mutual funds. CilJl
management is nOl aware of any violations of the City's investment policy during the
year.
The City has 00II_ with and mainlains demand deposit accounts with Bank of
America. A written contract with the City" safeh:epillg agent, Bank of California,
outlines the basic JeSpOI'IsilJilities with regard to delivery and receipt of securities.
Stale statu"" require co!Wera! for all public agency deposits and certificates of deposit
!lOt covered by fode:al deposit insurance. CeItificates of deposit (elIcepI for negotiable
certificaIes) are considered deposits and not investments for the purposes of these
stalutes.
Cash and investments ill Illile 30, 1992 comprise:
Cash:
Cash 011 hand
Held in trust and with fi>cal Agent
Deposits:
Certificales of deposit
Total cash and deposits
Continued
24
$ 249
-Ull
8,130
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STA~, Continued
June 30, 1992
(III thousands of dollars)
Cash and Investments. ooi"ltinued:
Wei,htlJd
A....,.
Curyina ).f&rl;:d lnI«esI
Value Value --&!<....
c.p, &ad dq>oailo LlUlQ U!..UQ
J.n~:
Cil] of I'll<> Al .. ~ """'" 3. 30 9.0~
BInbn IIl'O"p'IDOe ltOCeI ..... ",968 3.1
CommaciaI popo< 97. 919 ••• U.S. Treasury obliptioos 40.673 47,m '.1
U.S. A.-r obIiplicoo ..M.ill ~ 1.'
121.441 124,09'2
!.....t Ap>&y In_, fUDd 15,000 15,000
M_FUDd 200 200 De!=od __ (N"", 7) JLW ...lLH1
TocaI_ ..LlUQ! ~
Total cull. .mel iDvtllltmell.t. $182538 $105 189
At Iune 30, 1992. the wrying amoont of !he City" deposits was $23,881 and the b2nIc
baW!ce was $25, 79S. All bank balances were entirely insured or rollaleralW>:l with
securities held by the City or its agent in the City's nalne.
lnvestments in City bonds, bankers acceplances, (;Ommercial paper and ob~gations of
the U.S. government, with. total carrying value ofS121,441 .t June 30,1992. are fully
insured or registered, or represenl securities held by the City or its agent in Lie City's
name. These holdin,gs are ronsidered :0 be in the category of iowest credit risk as
defin<d in GASB Sllltemen. No.3. Investments in the Loca1 Agency Investment Fund,
the Mutual FWIIi, and resources related to the deferred compensation fund are not
subject to credit risk categorization under guidelines presented in GASB Swement
No.3, "Deposits with Financial Institutions. Investments (Including Repurchase
Agreemen:s), and Revene Repurchase Agreements .•
The deferred compensation fund acts solely to invest funds at the discretion of
participating employees. Such investments are not subject to statutes relating to City
investments.
Conti!1ued
25
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CITY OF PALO ALTO
NO'1cS TO COMBINED FINANCIAL STATEMENTS, Continued
Iune 30, 1992
(lll thousands of dcllus)
Cash anrl Investlll£.'1.:i, continut<l:
Included in !he cash and investment balance at I"ne 30, 1992 are amounts held with •
fiseaI agent and held in trust of $6,415 and ~I,466, respectively. Included in the
"""".!Dts held with the fiscal agent are bond proceeds in the amount of SS ,590 held in
a corutruetion fund, which earn. intores!. Amounts held with the fiscal agent also
inclwle principal and inu.rest paymenti on outitanding bond iM""", which are due Iuly
2nd of the following fiscal year. However, trust agreementi require t',e City 10 pay
these am"",,!. in Iune of the preceding fiscal year 10 allow for potentW delays in a.."tUal
p&yrn<rlt 10 bondholden. These amounts are not invested and do not earn interest as
they are situated in holding acccunts for • short petiod of ti me before actua1 bond
payments a...., made. Amounts held in trust represent deposits in bond reserve aocounts
with the bond trustees (Bank of America NT&SA and Bankers Trust Company of
Cilifornia, N.A.), which are 10 be used 10 pay the final bond pri.,cipal and interesl
payments. These mooies are governed by the trustee agreemellti between the City and
the trusteeS which state how the monies in the bond reserve accounts are to be invested.
Specifically, the City has gr.Inted the trustees authorization to invest these monies ;r,
insIruments essentially OOIlsisting of U.S. Treasury and Agency obligations and
nonnegotiable certi/icates of deposit. As of lune 30, 1992, all cash and cash equivalenti
held in trust were in rompliance with the respective trusI agreementi. At}tme 50,
1992, all Iru.!tee holdings were recorded at cost, which awroximale<i rnarkel value.
At lune 30, 1992, certificates of deposit were paced in two financial institutions and
were carried at oost. All deposits are rovored by f«leral depository insuran~, and/or
coIlatetaliz.ed with seccrities held in a collateral pool for the entire balance, in
conformity with state law.
Oontinued:
26
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CITY OF PAW ALTO
N= TO COMBINED FINANCIAL STATEMEr<-rS, Continued
June 30, 1992
(in L'lOusands of dollar.)
3. Cub and Inyestments. continued:
The June 30, 1992 market value information presented herein is based on quotes
obtained as of that date. It is presented Ie reflect the market value of the portfolio if the
City were to liqllidate the securities on that date.
4. Pro.perty. Plant and Equjpment:
Property, plant and equipment by Illl!jor classes at June 30, 1992 an: comprised of:
lntonlal G""ftI
En ........ Savi<o Fixed A.sae:l!I
J.!!!!olL FWI~ Aocgugt Group Tot&lll
Laod IDd i.mpro\Iemmts $ 1.541 $ S~,SI9 $61,00>
Builainp aod ItructumI S,319 35,435 40.754
EqW-238,494 $14,Cki,8 11.261 263.823
A"<"tm!""''''' depreciation .ill.12~ ~ .ill.1HJ
To<aI 1WJ.Z2 ~ $106 215 ~
Included in equipment at June 30, 1992 for Ih~ Enterprise Funds are "PProximately
$19,655 of oonstruction-in-progress. Additioilally. included aI hne 30, 1992 in land
illd impro\'emefl.ts and equipment in the ~ner6.l Fixed Asset Acco~nl Group and the
Interna1 Service Fund are assets under capital ka5es amounting to $9,064 and 52,250,
respc:cti.vely, with acC".Jmulated amortization of $228. Also included in land a"ld
improVemellts in the Enterprise Funds is $1,169 of developmenl anct artwork costs
incurn:d by !he Refuse Fund as part of a project to convert. portion of a solid waste
landfill site into a park.
Continued
27
CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(ill thou~ds of dollars)
4. Pmpcrrty Plant and EqulpmenC, continued:
The cIwlges in the General Fixe<! A1S<U Account Group for Ule fiscal year ended
June 30, 1992 ..... as follows:
BaIa«o, -,
ltelv 1 1991 Expmditure:s Retittunrt 1!Dle 30 1m
Lmd. _ i.mprovemeau: $ 57,062 $2,457 $ 59,51.
BuiIdiDo> mol --... 34,394 t,04t '.)5,435
Equ;-..lQ.W ~ im ...l!..2&l
Total 1l!U.lll $5,306 1m $I~ 21S
The citi .. of Palo Alto, Mountain VIOW and Los Alios (the Cities) participate jointly in
the cost of maintaining and opetating the City of Palo Alto Regional Water Quality
Control Plant and related sY'tern (th< Plant). The City is the owner and administmor
of the Plant whicb provides joint operations for the transmission, treabnent and disposal
of sewage to the Cities. The cities of Mountain V1eW and Los Alios are entitle<! to use
a portioo of the capacity of the plant for a specifie<! period of time. Each city bas the
right 10 rent unuse<! capacity from/to the other cities. The .. pcoses of operations and
mainttnance are paid quarterly by each city based on their pro rata share of treatment
costs. Additionally, joint system revenues are sha:-ed by the Cities in the same ratio as
expenses are paid, The amended agreement bas • tenn of fifty years beginning from
the original signing in October 1968, but may be terminated by any party upon ten
years' noIioe to the other parties. All sewage treatment property, plant and equipment
are included in the Wastewater Fund's property, plilIlt and equipment baI>.n« at June 30,
1992. If the City initiates the ~rrninat!on of the, contracts, it is required to pay t.lte othei
cities their unamortiza:! contnbution towards the property, plant and equipment.
Continued
28
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Continued
29
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
I!.me 30, 1992
(Lo thousands of dollars)
Jcnr-Tenn Uabi1tties 3JJd Debt
A summary of the chang .. in long-term liabilities and debt, net of discounts, where
applicable, for the year ended June 30, 1992 follows:
General obligation bonds
Utility ""' ..... bonds
Certificates of participation
Special assessment debt with govern mental
commitment
Capital Ieue obligation.s:
Terman &boo!
Te1qlhcne «juipmeDt
Los Alios T=tment Plant site
Vehicle «juipment
Other "'I. uipment
TOIal capital lease obligatiOll.l
Advances Io/from other fuJ'Als:
Advance due to Genera! Fund from the
Enterprise -Slonn Drainage Fund
Advance due to General Fund from the
Special Revenue -Gas TaJ< Fund
TOIal advances to! from other funds
Continued
30
BalAnce
July I,
..l22L
tim
..lU8Jl
-i.ill
....aM2
3,951
96
15
2,142
--1.2ll
~
2,167
~
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Cwrent
Maturities Balance
Add;tional and June 30, :.-ObJigations Retirements _122L
$ 75 $ II~
$4,750 938 16m
7,670 5,125 --.l..2JSl
::-.. 42C 62:12 ~
395 3,5~ ,
96
15
421 1,715
---& --.ll ....lM
---& ~ --1.ill
1,720 447
~ ... --.500
.l.l2!I 447
.,
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Continued
-' 31
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CITY OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS. Continued
lune 30, 1992
(m !housand, of dDU.ts)
5. Lpng-Term ! jabUjtiC$ and Debt, continued:
On March 18, 1992, the City issued $7,670 in Certifical<s of Participation for the
refinancing of the City's 1983 Civic Center Certificates of Participation (1983
Certifu:alesl and 10 provide new money for additional retrofitting and structural
improvement projects needed for the Civic Center. The net proceed, of $7,368 (after
payment of $190 issuance cost, plus an additional $653 of the prior debt service reserve),
allowed f",the refinancing oft". remaining 19t!3 issuance (SS,35S) and provided $1,898
for the additional capita! projects. A reserve of $767 was established for the new debt
service.
With respect 10 the refinancing, the Ciiy" previOlls Site Uase and Uase Agreement
Relating ro Palo AIIo Civic Center, dated Octoba I, 1983 with the Palo A1ro Public
Improvement Corporation for the puIJ>O"..e of financinll the 1983 Project, was amended
10 provide for both redemption of the outst:!!lding 1983 Certificates on 0cI0bet I, 1993
through establishment of an escrow fund and payment of the now Certifi= as they
become ~... Uase payments made by the City ro the Palo A1ro Public Improvement
Corporation are used ro IIIlW roquired principal and interest payments 00 the Certificates
of Participation.
At the time of isslll!llre of the 1992 Certificates of Participation (Certificates), the
weigh!l:<l average interest rate on the outsl3nding 1983 Certificates was 8.S05j;. Based
on that rate, the City realized an economic gain of $499, ~ting the differenre
between the _t values of the required payments on the new Certificates compared
ro those previously ""luired on the 1983 Certificates being defeased. A cash flow
savings to the City of $852 results from the di fference between the lOW debt service
requirements on the new Certificat<s compared ro those (or the 1983 Certificates being
defoased.
The City of Palo Alto Utility Revenue Bonds 1992 Series A were issued in April 1992
to finance certain extensions and improvements to !he City" Storm and Surface Walu
Management project within the Storm Drainage Fund. The bonds, issued ir. the amount
of $4,7SO, are collalerali7.ed by net revenues of the City's Eloctric, Water, Sewer, Gas
and Storm Drainage Utility Systems.
In August 1990, the City advance refunded its Utility Revenue Bonds 1985 Series A by
placing !be prooeeds of newly issued refunding bonds and prior debt service reserve
resources in an iJrevocabie troll with an escrow agent to provide for all future debt
service payments on !he prior bonds. Accordingly,!he trust assets and the liability for
the in-sub~ defeased bonds are not included in the City's financial statements. At
lune 30, 1992, the outstanding balance on L~ese defeased bonds totaled $10,900.
Continued
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
rune 30, 1992
(m thousands of dollars)
5. Imp-Term I iaNlities and I>ebt, continued:
In December 1989, t'le City advance rdunded certain specilll assessment bonds by
placing the proceed, of new bond, in an inevucable trust ",ith an =row agent to
provide for all futu, .. debt service payrnonts on iii<: prior bonds. Acrordingly, iii<: trust
account as<eIS and the liability for !he in-substance defeased l;on<!s are n()l included in
!be City" tinanci>l statements. AI Iune 30, 1992, !he outstanding bahnce on these
defeased bonds IOtaled $4 ,50S.
A mmmary of bonds payable and certificates of participation, net of unamortized
discounts, and capitall<ase obUgalions. at Iune 30, 1992 by individual issue follows;
........
",.. ........ T .... 0( ...... , "'""" ....... on,;..J "--"
.-I:L ..... .l!I!!!.!< -----ae..d ~ boa:b: """_ ..... "'" ~ .00 .... 1i.()OS LID !lJ!!l LI.U!l
~ __ iIoa:b;
19&1 A Scriu lP .. 11...25'1--1.25'1 771 -.'" .. "" 19110 A seria .... '.705-IIi..lll' 5,OI.~ '.6JO ',1110
1992 A Seria """ 6.3C"'-6.l7S'I. S,l.U't •. ,.so _.m
X-:U~~ --.ill!)
T""' ....... .J.LQQl .ll.W ~
Catis-. ofpatbr::ipDla.:
C'"m.: c-. imp~..w~ 2Ol2: ~.60S -6.10'1 '400 ...J.>1Jl 7r.7IJ
""~_6dR..-iI:l
,Ui .. •• lonmmiuDe:ar.
UcWty .... .ialprtl'O'cGaII &ad
pout.iaa ~ ""-b """ s.u ... ·, 0.95" ..u2l .J.!.lQl ...!.ll!
c.pital .... ~:
T~""" lOOO v.n.wo 1.423 6 .. 5'11 3.H6
Vollic:k~ ,0<1 5.?OS-5.IOS :12l ..... I.ns """-i99(j..97 UI·1.l1'l. -.U ~ --.lli
Toe.l ...,..uJ __ "x,1ip.)oa. --1Ml ...1.!l§ ...1.lli
Continued
33
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEME.>ITS, Continued
June 30, 1992
(m Ihousanda of dollars)
1'be annual requirements 10 ~ 011 bonds, certiJicates of participalioo and capital
Iaues ~g as of June 30, 1992 _ as follow.: ---IlIIII r~lW""'J
J993 • " . ., • "" , ... " 61 '36 ,.., " " 132 , ... .00 53 In . ..., !C." 47 .11 ---m ..w .....I!Il
T .... I.I.JJ!I WI U.IU
lWla,,1I
_ . .... m 1.136 1,171 .... ." '."" 1,'10 ..., ." ." ..... , ... ... "" 1 ....
'097 '.000 '" '.m ..-..llJI2! ....6..W J.LIIU -.IWI1 J.U.I!!l ms
Catj1irep,,(Pz!' ..., ,.. '" ... , ... lIII <37 .. , ..., .., 4:1 ... .... "" "" '" ..., "" "" I:!O
T...-..uz:i ..l.lII!! ~ , .... l2Dl ~ iW!llI
S/iIIi&l 6 1Ilct!t;-
'993 .39 m '" .... "" ..,. ... ..., ,., .., .., .... "" .., .. , ,.., 0120 "" "" """"'" .JUJ:l ..ul.l --UfiI
T .... am wa ~
r-l Laa: r.t.li .. ,· ':
'''' .., "" '.209 .... 9211 ,,. ',157
''''' "'" ,.. '.226 .... no "" "" • 997 41 • '" "" ~ .l.ID ....lU J..m ."" il&II IUAl WJ2
Continued
34
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
lune 30, 1992
(In thousands of dollars)
5. I.ooe-Term I iehi!itia and Debt, continued:
Principal and interest on ge:\eraJ obEgation golf coone bonds are paid from lease
revenues received by the Palo Alto Golf Course Corporation from the City.
Principal and interest on special assessmo.,! debt wiL~ govern ment:il oommitment are
pald first from assessments to benetilled propenies and, 5eC<lnd, ro, districts with""t
their O'W"D. rcsave funds, from general tax revenues. '\\'here reserve funds are drawn
upoo., reimbursement would be made in order to maintain the ""Iuin-<! reserve arnourl
Principal and interest on all revenue boru!s are payable from the net revenues of the
electric, gas, water and wastewater funds. Revenues of the Storm Drainage Fund are
also obligated for lIle 1990 Series A II<>od •. The revenue bonds are oo\lateraliud by
a lien over the net te-"enues of the entetprise funds. Future ir.teresI payments are based
on average interest I3les of 7.4% for the 1983 Series A; 6.42S% for lIle 1990 Series A;
and 6.343 % for the 1992 Series A bonds.
The variable interest rare for the Terman School site lease is based on the lessor',
Investment portfolio; the me at lune 30. 1992 was 8%. Future interest payments are
based on an estimated me of g%.
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(11l thousand. of dollars)
! Mg-Term Liabilities and nmt. continued:
Loag-term liabilities as of Iune 30, 1m m ca!lable on the following terms and
conditions:
In_ lciQal
.R!!a. ~
G-.I obllptioa boodo,
Golf oounc boads i.awd:
03101na !!i.OO~~.OO'l 3/118&1') _bcodo, ---0ISJ01183 6.25~-8_25'1j 7f1I9JiSJ
04!12l19l S.70~-6.80" 6/1/()1 (!)
04101192 15.30'1;-6.375,," 6JlIOJ<Sl
C'.etI:i6cateI of partjcipatioa;
C<mfi_ 01 puticipatioo _
03l1S/92 3.60"-6.70~ 3/t/OJ"
Spocial t boDd8:
Specitl -' booda iaucd,
091(J2f69 '!i.9O'15 Lilti1 =
04122i6ll S.S{)'I5--6.00'li 1iZ1T1"'
04122168 5.3'''-.6.00'' 1f2(11~
Ol/02nS 7.00 "·7.SOti 712J8S(J)
OSi02n1 6.00" NODe
061OU71 5.40'11-7.75 \\ 7ruST')
OSJ02i80 7.2.5-'-9.50" 1l219l:I"
12102!82 10.951. 71218'3(3)
03130181 6,70".9.25~ ,1'2J9<i"
12118/89 S.7Sifi-6.90ti 9/1100"
{I) CaIl&ble ia invet'ge numerical order of mawrity .. pat plus. p1"emlUID of .25" for each}leu from
~on CO tJaturity date.
Q Callable m IDveue ~ 0"i'Ib' of maturity It pu.
()l ~ ill :numerical order at lOS" of par.
~ c.n.ble in invene numerical orde;-of IDILlUrity at par plw .5 'I, plur; .25 'Ij for-tach year from
recS.=pti0l1 10 maturily ~
01 CalW:JIe i.r:! mvot8e Dumerical orde3-of maJurity at par plU& • premiwn of 2 '15 ~ on the
iDitiall:&Il date. The c.D price declines 8U~r to the initial date .
., C&Ila.bk in inverse uummcal order of ms.tur:ty at par ptlll • ptemium of 2.5'1j beginDioj: on the
initial call dat.c, The can price dtw:lmea: subsequent to die lCitial date.
(T) CalLable in inVtf"ge .numerical 0Tder of maturity &I ptt plus. pre:mium or 3 51-bezinninJ on the
WEUI call date. The call price cSecJ.ines subsequent to the initial dale.
~ ean.ble i:oJ aay order specified by the City.cd: par plus .. premlLll%l of 2" ~ oa the initial
c:alJ dale. ne caU price ~ aubsequebt IQ the initial dale.
Continued
36
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(m thousands of dollars)
6. Pensjon Plan;
I'IIm Descriptio,,:
The City contribute; ro the California Public Employees' Retirement System
(CalPERS), an agent mu!tiple-employer public employee retirement system that acts
as a common investment &nd administrative ag<nt for participating public entities
wi!hin the State of California. The covered payroll for employees puticipating in
the System and the total payroll for the yea; ended June 30, 1992 was $42,029 and
$46,478, respectively,
All full-time &nd part-time benefitted City employees are eligIble to participate in
CalI'ERS. Part-time non-bencfitted hoorly employees do nOl participate in
CalPERS, Benefits vest after five years of "",ice. City employees who retire at
or after age fifty with five years of credited service are entiUed to an annual
n:tiremcnt benefit, payable monthly for ille, in an amount ~l3l varies from 2 iii> at
age fifty to • maximum of 2.7% at ages fifty-five to sixty of the single highest
year' 5 salary for safety employees (in an amount that varies from I. 092 iii> at age
fifty to. maximum of 2.41 8 iii> at age sixty-three of the single highest year" salary
for non-safety employees) for each year of credited service. CalPERS also
provides death and survivor', benefits. These benefit provisiOfls and all other
requirements are establi.shed by State stature and City ordinance,
Employee and Employer Contribution Obliptions:
The City makes boL~ the employee and employer contributions. The rates are set
by statute and therefore remain unchanged from year to year. The present
employee. contnbution rates are;
Qfttof)'
Local miscellaneous members
Local safety members
Continued
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Member RMes as a
Percentaee Qf Wages
7%
9%
f , ,
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
Jur:;e 30, 1992
(lll thoU5aJld. of doUan)
Pension Plan. cantin ued:
The City is required 10 contribute the remaining amounts nec:ssary 10 fund' the
benefits for its members, using the actuarial basis r=mmended by the Ca!PERS
actuaries and I!ctuariaI consullallts as adopted by the Boord of AdminiS1:'atioc. The
employer ccnttibution rate during the fiscal y<ar ended J""" 30, 1992 was 7 .881 ~
for \ocaI misOOlaneous members and 20.949% and 20.855~ fire and poli~ safety
member>, respectively. A portion of the City'. contnbution was made by applying
a surplus asse! account balan~ ac<;umuJated through June 30, 1991 and through a
sys!em-wide Jefund authorized by the California StlU: Legislature wi_til the passage
of Assembly Bill 702.
Related Party Investments:
Related party investments are avoided by Ca!PERS as part of its written investmen!
policy 2nd no known related party ;"yewnents e;ciS! in !he fund.
FundiDg StatllS IIJld Procres<:
The amount shown below as the 'pension benefi! obligation' is a stIndardiz<:d
disclosure of the presen! value of pen;;on benefits, adjusted for the effects of
projected salary ina= and ~rnu: benefits, estimated 10 be payable in tho
future as a JeSuit of employee service to daU:. The measure is in!ended to help
users assess the funding status of CalPERS on a going-concern basis, assess
progress made in lI«;umuJating su fficient assets 10 pay benefits when due, and make
comparisons among empioyers. The measure 1.:; the actuaria1 present value of
credited projected benefits and is independent of the funding method used 10
determine cor.tnbutions 10 CalPERS.
The pension benefit obligation was computed as part of .. , actuarW valuation
performed as of June 30, 1991 (one year in arrears). Significant actuarial
a.s.sumptions used in the valuation include: (a) a rate of rew.m on the investment
of present and future assets of 8.15% a year compounded annually, (b) projected
salary in= of 5.25:11 • year compounded annually, attnbutlble to inflation,
and across-tho-board real salary inereases, (e) additional projected salary increa<es
of 1.75:11 and 2.0051; a year for mi=Uanoou. and safety members, respe<:tively,
attnoutable to seniority/meril, and (d) no post-retirement benefit increases.
Continued
38
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CITY OF PALO ALTO
NOTES TO COMSlNED FINANCIAL STATEMENTS, Continued
June 30, 1992
(lll thousand3 of dollars)
6. Pension Plan. C(lntinued:
FuncIiDc Status and I'rogreo;s, continued:
At June 30, 1991, L'le total unfunded pension benefit obligation applicable to the
City's employees w"" as follows:
Pension benefit obligation:
Retirees and beneficiaries curren~y receiving benefits
and t=ninoted employees I\()( yet receiving benefits
Current employees:
Accumulated employee COIlIn"utions including
aIIocaled investment earnings
Employer-firlanred, _
Employer-financed, oon-vesled
Total pension benefit obligation
Net assets available for benefits, at cost (market value
is $160,589 at June 30, 1991)
Unfunded pension benefit obligatinn, at cost
$70,736
35,834
44,52()
---U2!i
152,6.!5
During fiscal 1992, the Board of Administratioo of CalPERS approved system-wide
changes Ie the monality, retiremeol, withdrawal, and disability rates used in
eaJculating the pension benefit roligation to be!tcr estimate the future experience of
the plan, For the City, these changes in actuariaJ assumptions decreased the
pension benefit obligation by $4,298 during fiscal 1992.
Continued
39
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em-OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
Iune 30, 1992
(m thousands of dollars)
6. Pension Pian, continua:1:
ActuarialIy DetennIDed COD2ributiOD Req uiremeots and
CoDlributiOl1 Made:
CalPERS ..... liIe Ellery Age Normal Actuarial Cost Melhod which is a projected
benefit cost melhod, ThaI is, it talce& into account those benefits that are eq>eete<!
\0 be earned in the future as -.u as those already a<:crued. Acrordlng to this cost
method, the normal cost for an employee is the level amount which wollld fund the
projected benefit if it we,. paid annually from date of employnu:nt until retirement.
CalPERS uses • modiflC&lion of the Entry Age Cost melhod in which the
employer's total oormal cost is expressed as • level P"=tage of payroll.
CalPERS aJso uses the level percentage of payroll melhod to amortize any unfunded
actuarial liabilities , The amortiDlion period of the unfunded actuarial liability ends
on !U!k! 30, 2(X)O for pOOl service ~4.ts and for current service benefits;
however, the City has applied f", an exteruion to June 30, 2016, which i. ""'peets
will be approved.
The significant actuarial assumptions used to compute the actU3rially determined
oontnl>ution requirement are the same as those used to compute the peooion benefit
obligation, as prwiou.siy descnbed under Funding Status and Progress.
The contnbutioo to CalPERS fur the year ended June 30, 1992 of $7,968 was mado
in accordznce with actuariaJjy determined rec;uirements compured through an
actuarial valuation performed as of Iune 30, 1991. Tho contribution consisted of:
(a) SIi,804 nonna! cost (16"19% of curren. covered payroll) and (b) SI,I64
amortization of the unfundod actuarial acaued liabilirj (2. n % of eu=t co.em!
payroll). The City COI1tnbuted employer contnbutions of $4,766 (11.34% of
CUIRCt covem! {layroll); and on behalf of employees conlnbuted S3,l24 (7.43%
of CUIRCt covered payroll). AD addition<ll $78 was contributed directly by
employees.
Trend Infonnation:
Treml information giVelI an indication of liIe progress made in """urn ulating
sufficient assets to pay benefits when due. System-wide ten-year trend information
to be supplied by CalPERS is not yet available.
C0110nued
••••• i'Jo.
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Conti.~ued
June 30, 1992
(11\ L'lousands of dolla,,)
6. Pt:osjoo Plan, continued:
Trend Wm-matiOD, continued:
Required 1l'.ree-)'t3l" tn:nd irJormaticn (firu marle available by catPERS in fi.iCal
1997-gg) for fi.iCaI)'t3l"s 1989-1990 through 1991-1995 is summarized as follows:
1291-1 991 1 '>'9().1991 1989-1990
Net ~ .available rot bmefitl:
expt'NIIed ..• pcro;=tage or the
pc:asioa beaefit cbIigatioa '4.8'" 9J.7i1 93.6'1
t..'hlImded ~oa benefit obtiptioa. expressed
at a ~ of mmUll coveted payroll 17.1" ~t.!iI 'I 22.810
eq,Joyer c:oa&I'ibutiaaI apn:!8It.ICI ...
~ of mnual CO'IIered parroD.
IDIde in ......... dabce with .auarial1y __ requiremcali 11.3'" 9.511 10.010
RetiremeDt System Rebate" Rts..r .. tlon of Fund BalaocelRetaloed Earni_:
A!sembly Bill 702 (Chaptllr g3, statues of 1991) was pas>ed by the Stale legislature
and signed into law as part of the 1991-92 Slate budget. The major impact of tile
bill to cities in CaIPERS was the creation of a one-time rebate to employer
=unts. In fiscal year 1992, the City'S CalPERS contributions were reduced by
recognL"ililJ: credits of over $2.7 million; the remainlng $3.4 miiUon credit will be
realized in fi.iCaI year 1993 Because the legality of !he Assembly Bill 7(}2 rebate
bas been appealed 10 the U.S. Supreme Court, the Cily bas chosen to reserve that
portion of fund balance in the general fund and retained ,""",ings in each entelprise
and 1II1ema1 service fund attributable to the rebate until a final legal determination
is made.
Continued
41
-""'':''''!I!Il ••••• IIIIIIIiI • ., .. · .. a tj,.,!111! ••• ..,-__ . >,.,-
\ : :
CITY OF PALO ALTO
NOTI'S TO COMBn-.eo FlNANCtAL STATEMENTS, C<>ntinu<>:l
june 30, 1992
(m thousands of dollin)
6. Pension Plan, continued:
Other P05l-Retirement Beoerrts;
In addition 10 providing pension beIlefits, tk City provide> certain health care
benefits for reIiIe<l employees. Substantially all of the City'. employees may
become eligible for those benefits if they reach normal retirement age while
working for the City. The costs of retiree health care are !'eC<>gnized as
~penditures when claim. are paid. For fiscal 1992, ~ilures for retiree health
care for approximately 329 eligible retired employees toWed $978.
7. Deferrql Comrensation Plan,
Employees of the City of Palo Alto may participare in • deferred compensation plan
adoplrd under the provisions of In~ Revenue Code Section 457, Deferred
Compensation Plans With R""I"'" To Service For Stam And LocaI Govemmenis.
The deferred comperuatioo plan i. available 10 all employees of the City. Under the
plan, employees may elect 10 defer a portion of their saIarie.s and avoid paying taxes on
!be deferred portion until the withdrawal dare. The deforred compensation amount is
DOl: available for withdrawal by employees until tennination, retirement, death or
unforeseeable emergency.
The deferred compe:uWon plan is administered by three unrelatOO admini.trators.
UDder the terms of IRC S<>..tion 457, until paid or rr.ode available 10 the employee< or
beneficiaries, aD deferred compensation and income attnbutable 10 "'Ie investment of the
deferred compensation amounts held by the administralOr>, are tho property of tile City
subject ooly to the claims Qf the City's general credico... In addition, the participants
in the plan have rights equal 10 those of the general creditors of the City, and each
participant'. rights are equal to his or her share of the fair market value of the plan
assets. The City believes that i. unlikely that plan assets will be need"" to satisfy clalms
of general creditor> that might arise.
Continued
42
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CITY OF PALO ALTO
NOTES TO COMBlNFD FINANCIAL STATEMElITS, Continued
June 30, 1992
(In thousand5 of dollars)
7. Deferred CQmpen:;arion Plan, oontinued;
As part of its tiducia:y role, the Ci ty has an obligation of due care in selecting third
party administrators. In the opinion of the City" management, the City ~.as acted in •
prudent maILoer and is no! illIble for losses that may arise from toe administtation of the
plan.
At Iune 30, 1992, net assets available for benefits totaIoo $21,767, which are included
as cash and investments of the Agency Pund5 and are offset by • colrespooding illIbility.
8. Self Insurance Prngrams:
"'" The City has ..tf insu1anoe programs to provide for genetal liability, medi.C<II and
denlal, and worlreo' compensation claims, Under the self insurance program" tile City
reIains the risk of loss for up to. maximum of $1 million for each claim. TIle activities
~ of the self inswanoe program. """"""rded in the Enterprise and Internal Service Pund5.
-',
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EstimaJed liabilities are recorded for claims in cases where such amounts are reasonably
determinable and where the liability is likely for incuned but nO! reported (lBNR)
claim.. mNR claims are claims !hal are incuned througb the end of the fi.scaI year but
DO! teportod until after !hal date. The estimale<l liability is determined based upon
actuarial estimates of tile amounts nro:led to pay prior and current year claims. The
estimated liabiliti .. Ole reported at their present value of 56,995 at Iune 30, 1992 using
a diSC<lunt rate of 5 % which approximates the City'. rate of retum on short-tmn, highly
liquid inveobnents. Application of the discount rate has toe effect of reducing the
estimated liability by $961.
Continued
43
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cnv OF PALO ALTO
NOTES TO COMBINED FINA.'!CIAL STATEMENTS, Continued
June 30, 1992
(m thousands of dollars)
Self [nsurance Prorrams, continued:
Changes in tho self insurance liabilities during the fiscal year ended June 30,1992 were
as follows:
""""" CIaiao mol
Balana af ChcIiCS in C1aim B&lmce. at
July 1 1291 FAti!Illl~ ~ June 30 1m
$6,020 S6,m $(5,297) S6,~5
To cover tho risk of loss in excess of $1 million per incident, tho City has excess
liability coverage through the Authority for California Cities Excess Liability (ACCEL),
a joint pow""" aulhority of medium-sized California municipalities. ACCEL pools
catastrophic general liability, automobile liability and public officials errors and
omissions losses. ACCEL intends to pool viltually every catastrophic loss incurred by
its members, thereby eliminating the need fOT commercial exce.>.s insurance protection.
As a result, each member', share of the pooled coSU will depend on the catastrophic
losses of all tho members. In addition, the cost to a member cit! will also depend on
that member's own loss experience Entities with a consistent record of costiy claims
will pay more than entities with a consistent recor:I of lesser claims activity.
In order to provide funds to pay daims, ACCEL collects a <I.:posit from each member.
The deposits are credited with investment income at the rate earned on ACCEL',
in,=ents. The followlng is summary financial idormGtion of ACCEL as of and for
tho fiscal year ended lune 30, 1992:
Tolal assets
Tolal liabilities
Members' equity
Tolal revenues
Tolal expenses
Deficietl-C)' of income over expenses
$35,416
34,997
419
6,398
6,775
(377)
Settlements for each of the past three fiscal yean ha ve not exceeded the insurance
oovenge provided by ACCEL.
Continued
44
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CITY OF PALO ALTO
NOTES TO COMBINED FINANC[Al. ST A TEJ.':ENTS, Continued
June 30, 1992
(m thousand. of dollars)
8. S#f IO!!YQoce Pmgram$, continued:
Tile foIiowing municipaIities are also members of ACCEL: Anaheim, Bakcnfield,
Burbank, Gardena, Modesto, Monterey, Onlllrio, Santa Barbara, Santa Monica and
Vualia. A ropr=tative from each member city, appointed iO the position by Ibeir City
Co\mciI, serves on the Board of Direcu>rs of ACCEL The Board i, 'OSponsible for
cIeciding the risks ACCEL will underwrite, monitoring the oosts of I", go claims, an<l
arranging financial program.. Eac~ member of the Board MS an equal vote in matters
OOOC6Iling ACCEL. ACCEl does not have any debt outstanding.
The funds invested by the City ($2,701) in this pool are not included as assets nf the
City ll! of June 30, 1992. The tIansfer of total risk to the insunu>ce pool Ms DO!
occurred; bowe-;er, the actuariaIIy determined probable liability to the City for claims
not oovered by thi, insurance pool is included in the City', accrued self ins<Jrnnce
balanoe ll! of June 30. 1992.
Continued
45
9.
CITY OF PALO ALTO
NCYI'ES TO COMBINED FINANCIAL STATEMEl'<"TS, C"otinued
Iune 30, 1992
(m tllousand. of dollar,)
Segment lnforrr.ation for Enterprise Funds:
'.".
The City's six eoterprUe funds account for the acquisition, opera.tion and maintenance
of water, electric, gas, wa1t.ev.'ater I refuse and storm d.rainage facilities thai are
supported by user charges. Segmenl infoml2lion for the year ende<! June 30, 1992 is
as follow"
~ ~ ~
Operating revenues $10,522 $ 67,lll $16,158
DeprecialiOil .. '1<1 amortization 445 3,008 453
Operating income 3,427 25,721 3,820
Operating transfers to Governmental Funds 2,689 9,550 1,666
Net income (loss) 957 l3,564 3,009
Cum:ul capital oontributions 1,179
Property, plant and equipment;
Additions (exduding const:n.tt:tion
in progress) 2,466 4,Il0 1,5&1
Retirements (net book value) 4 12 25
Net woddog capital 3,126 68,238 13,692
Tot!! asset! 21,863 143,460 30,202
Bonds and oontt2Cts, net of bond discount,
payable from operating revenues 303 341
Total equity 21,342 139,280 28,620
Continued
46
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Sconn
Wa.stewatq RdiIz DrajM&e IQJiIl
$14,083 $12,575 $1,604 S122,053
1,969 313 6 6,244
3,581 3,271 1,137 40,957
109 2,m 32 16,818 .., 3,179 (613) 1,2n 2L373
",' (1,164) 15
..; 5,228 2,350 15,735
41 , 7,764 6,944 4,763 104,527 -56,392 13,967 8,239 274,123 -10,860 4,588 16,092
43,989 13,145 3,032 249,408
..
Continued
47
lD.
CITY OF PALO ALTO
NO'I'ES TO COMBINED FINANCIAL STATEMENTS, Continued
JI1J1e 30, 1992
(lll thousands of dolLL"J
fmprietary Funds' Eqyjty:
The Enterprise Funds' equity 1w been allocated as of June 30, 1992 as follows:
~ ~
Contributed capital $ 7,684 $ 15,840
Emergency plant replacement reserve 503 1,873
Systems improvement ~ 199 9,652
Transfer stabilization reserve 448 23,992
Calaveras n=;erve 26,100
Gas supplemental supply =erve
Debt """';00 reserve 59
Commitmolts and reappropriation, 1,918 5,854
Underground loan reserve 499
Conservation loan reserve
LandfiIJ closure reseIVe
Retirement system rebate n:save 58 210
Unreserved retained earning.
(""""",,,uJaled deficit) J..I1lli 5520i
Total fuod equity mJ£ il~2 2~Q
Continued
48
Q.u
$3,292
476
4,335
2,820
4,083
66
1,258
571
84
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Stann
Wastewater [h:Jinii:~ :Ir!.lil
$29,8$9 $S6,~
j --, 1,060 3,912 -3,638 $ 4.,04ti $3,552 lS,422
Z7,260
~ 26,100
-.' 4,083
416 54.1
2,~Sl 1,677 1,199 14,397
499
571 -, 1,171 1,!71 -160 50 12 514
~ ~ Il..1lD 88 !7.3
&m 1U...W ~ $249 49 8
• .
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continue<!
1une 30, 1992
(in thousands of dollars)
10. pxqmjetaty Funds' Equity, continued:
The lnt=! Servi"" Fund's equity has been allocated as of 1une 30, 1992 as foUows:
Contributed c:apittJ
l!mined earnings
CommitmeDts i>.. ;;;apploptiations
~t syItem rebate moerve
Unreserved
Totti fund equity
Il. CcmmitroeDl.1 and Contin gendes:
IiJJJJlJJ:!zI: Cqlifomia Pagr A g(1lOl
$ 5,138
1,014
33
-1..ill
~
w.m
The City is a member of !be Nor1hern California Power Agency (NCPA) , wlticll
0(lCIlW'S under a join: powers agreement among 14 agencies. NCPA .... create<l for
!be pu!JlOSe of planning, financing, developing, acquiring, conmucting, operating and
maintaining projects for the generation or IIalLSmissiOll of e!ecttic power. &cl! member
has one representative on the NCPA council and one vote for matters of budgeting and
financing.
The City is a participant in. number ofNCPA projects. Under !be t=ns of !be project
agr<emen1S, !be participants are obligated to make payments for their proportionate share
of openting and mainten= expenses and deb. semce, whether or no! the projects are
~ or have been completed. '!be City has .0 investment in !be plant, These
costs are included in cost of utilities purchased in the statement of rever> ues, expenses
and changes in fund equity in !be Enterprise Funds for the year ended June 30, 1992.
The project ~ts remain in effect D.1iI the project honds outstanding are poid or
funds are set aside for stich payment and !be agreements caronot be terminated or
amended without consent of !be hand trustees.
Continue<!
50
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(m thousands of dollan)
11. Cgmmitmcnts and C9fJtinge:11cics, continued:
Nor:btrn CaJibmia Power AWlC\I. continued:
The City" sIwo of debt O'Jtstanding in conjunction with the various projects at J'Jlle 30,
1992 is as follow.:
Total City"
NCPA City~s Share of
Outstanding Participation Outstanding
Debt Percentage Debf
Hy<IroeIeWi<: Project II;
1985 Series A S 22,180 22.92% S 5,084
1991 Series E, F, G 315,045 22.92% 72,208
1986 Refunding Series A 42,535 22.92% 9,749
Transrnisrion Project I J;
1989 Series A 17,090 11.07% 1,892
The City', participalion in • NCPA a.othermal Project was sold to Turlock Jrription
District (Turlock) in October 1984. A=rdingl)', the City is liable for pa)'lll<'llt of
outstanding geoOlennal related debt OIIly in the event that Turlock fails to make specified
payments. Total 001.'landing debt of the NCPA Geothermal Project at Ju.'le 30, 1992
is $747,375. The City's participation in this project was 6.15%, or $45,964.
All the debt is secured by certain revenues and funds of NCPA. L, addition, the
Geothenn.l:I T!3ll.5mission Project debl i. also oecured under • letter of credit by 5 .. ,,,
Bank Corporalioo.
In April 1991, the City signed an agreement with the City of Roseville 10 sell a 6.52%
portioo ofils capacity.more of NCPA', Calaveras hydroelectric plant for a period of 14
yean;. Under the terms of the sale agreement, Roseville will pay all the operation ."d
mainla!ance costs asooci>ted with 6.52% of the planL In addition, Roseville will also
. pay the City a portion of the net debt service obligation, of the currenl 1000g-term debt
associaled with the Hydroelectric Project No. J. However, if Roseville def.Jlts, the
City is =darily liable for L'le outstanding debt service obligations.
Continued
SI
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CITY OF PALO ALTO
NOTES TO COMRlJ'.."ED F1NANCL\L STATEMENTS, Continued
Jene 30, 1992
(m thousands of do=)
L 1. Commitments Md Cpotinrencies. continued:
NQrthern CiJlifomiQ Pqwrr AUncv, continued:
Following is a coodensed balante sheet as of 1 ... ,e 30, 1992 and a statement of
opentions of NCPA for the year ended June 30, 1992:
AoooIs
Electric plant
RestricIEd funds
Other assets &lid deferred charges
Current &.!sets
LIabilities and Equity
Long-rermdebt
Cunene liabilities
Other liabiJiti",
Retained earnings
Statement of Operations
Sal .. to participants
Operating expen""
Nonoperating othrr e>penses, net
AlIditions to operating revenues and
refunds to participant'
Net loss
(UnaudilEd)
$ 748,524
262,332
400,552
~~
$1.469,553
51,312,477
89,189
59,988
7,899
Sl 4tj9 553
$ 158,575
(74,029)
(79,741)
(29 528)
S G4,i13)
Ill. Dc:ceml:Jer 1984. a number of California municipalities. entered into a joint powers
agreement which crealEd the Transmission Agency of Northern Californiz (f ANC), a
political subdivision of the Stale of California. The purpvse of TANC is to provide
electric tranYnission or other facilities for tIle we of tile members. The membership of
TANC consists of Zhe City, ten other cities? one utiJjty disnict. and two irrigztion
districts. Each member has one representative on Ute T ANC council and one vote for
m.a.ttm of budgeting and finance.
Continued
52
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Conrinue<l
June 30, 1992
(in thousands of collan)
1 J. QmnnitmCOts an4 Contingencies, continued:
Trarumj.rsion AfCncv gfNonhem Cgljfomiq, oontinued:
The members pay for operating costs and are entitled 10 an interest in the right and
property of T ANC in s=rdance with specilied participation percenbges, with each
mcmben' share of operating costs I10I to exceed S50 per year.
The capacity of the Project has been sold to the cities and districts which established
T ANC and are potties to the joint powers agreement. Under the terms of the Project
_t, the pUtthasers are obligated to make payments for their proportionate share
of operating and maintencnce expenses and deIlt servi<:e on reva".., bond" whether '"
DOt the Project is operating or has been compleled. The Project _t remains in
effect until the revenue bond, "'" paid and the a.,oreement cannot be terminated or
3l1l<Ilded in any manner that will impair or adversely aff""t the rights of the noteholdcrs.
AsofJune 30,1992, the City maintUns •. OO9l> of the membership in TANC. Amounts
outstuJding under revcn"" notes aJ J"ne 30, 1992 are $387,308, of which the City's
share is $15,492 .
Continued
53
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CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
]U1\e 30, 1992
(m !ho"sands of dollars)
11. Cgmmitments and Contingencje,$, continued:
Tmnsmi.J.tion A WKY of Northern Califomja l continued:
Following is a
oper3lionJ of TE.
'ensed balance sheet as of lune 30, 1992 and a =menl of
'or !he year ended lune 30, 1992:
(Unaudited) -Proj..:l development cxms $345,309
_funds 162,792
CurIalt wets ~
$512 339
Uabililies and Equity
Notes payable 5387,308
Current liabilities 124,792
Members' equity ~
$512.339
Slat ..... at of Operations
Revenue. $ 949
Expenses ~
Operating loss (39)
Interest in<ome ~
Net loss $ (I§)
Continued
54
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CITY OF PALO ALTO
NarES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1992
(m thousands of dollan)
11. Commitment" and ContingenciCj. continued:
OpmztiDg Uasy:
The City iJ currently obligated WIder an ope.-ating lease agr<elllOflt with !he Palo Alto
UniIi<d School District (l'AUSD) to lease the former Cubberley School site and eleven
extended day care sil... The lease is part of • larJ:er agreement which includes a
covenant no( to develop certain properties owned by the PA USD. The lease term
expl= in De<ember 200S with an option for an additioruU ten-year term. The City iJ
rapo!lsible for insIUanoe, repain and maintenance .xpenses related to the leased
facilities, which are :lOt to exceed 5250 per annum. nus lease is SUbject to lflllual
appropriation. by !he City Council", make the annual I..,. payments and is cancclabl.
upon 90 days wri= notice in !he event funds are no! approprtued by !he City. In
addition, !he lease is contingent upon aulhorization ~y the Palo Alto electorate if it
exceeds the City" Propositior, 4 (C-ann) limitation in any r.scol year. Lease
expendilures for the year ended hne 30, 1992 amounted to $4,287. Future minimum
annu.al lease and covenant payments are as foilows:
yew Endinp June 30
1993
1994
1995
1996
199'
Thereafter
Total
$ 4,361
4,361
4,361
4,361
4,361
~
1alli
Included in this lease agreement is an additional commitment to reimburse the School
District for a!hletic field improvements at an estimated cost of $225.
Continued
55
-................. IIII>.cC ... -. _III'.' _.1 ...... """ ~" ... .
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CI1Y OF PALO ALTO
NOTES TO COMBINED FINANCIAL S1"ATEMENTS, Contir.ual
June 30, 1992
lut Illousands of dollars)
11. Ccmmitments and Contine-encies. continued:
Litigation:
There are currently pending against the City cortain legal actions arising in Ille
normal course of operation.. In the opinion of management and legal counsel, the
ultimate resolution of such actions, not covered by insu.'3Jlce, is not expected to
have a si,nificant effect upon the financiAl position or operation. of the City.
Lytton Gardens Counlesm1t Hospital:
In fiocal 1981, the City issued bonds to refinance existing oonstnlction bond. of the
Lytton GartIoo. Convalescent Hospifzl. ReceiptS from the operations of Ille facility
are pledged for payment of Ille bonds. "fh<,bonds are nOl a liability or contingem
liability of the CIty or a lien on any of its properties and are insured as 10 the
payment of principal and interest by tt,e office of Statewide Heal th Planning and
Development (SHPD) of the State of C.alifornia. Beginning in November 1989 and
continuing through June 1991, t'lents of default occurred when Lytton Gardens
used "00!Ml reserve fun~ assets 10 .. nsfy certain interest and principal payment
requirements. No action has been taken by SHPD to declare the hospital in default.
Lytton Gardens made payment for li;cal 1992 bond interest and intends to restore
the bond reserve fund as improving cash flows permit. At June 30,1992, $14,111
is out.stancling under these bond., of which $751 represents arr.ounts to be restored
10 the bond reserve fund.
Palo Alto Medical Foundation:
The City issual revenue bond. in fiscal 1987 to finance the purchase and
improvements of equipment and facilities of the Polo Alto Medical Foundstion.
Gross reven""" from Ill. operations of the facility are pledged for payment of the
bonds. Tne bonds are nOl • liability or contingent liability of the City or a lien on
any of its properties and are insured as to payment of principal and interest by
SHPD. At June 30, 1992, $24,855 is cutsWlding Ullde! such bond •.
&10 Aho SaDilJl.tion Company:
The City has entered into a 6O-month contract, which expires June 1995, with the
Palo Alto Sanilation Company (PASCO) for the collection and transportation of
refuse, ruhbisb and gatbage. The City is commin.d to pay PASCO a percentage
of refuse revenue billed !O City citizens and customers. TIW percentage, which is
negori>.ted annually, is currently 38.13%. During fiscal 1992, the City made
payments of $4,958 for services renderoo by PASCO.
Continued
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CITY OF PALO ALTO
NOTES TO COMBINED FlNA.';ClAL STATEMENTS. Omnnucd
June 30. i992
(in thousands of dollMs)
II. Commitments and Contineencies, continued:
12.
l'1li0 Alto H .... ing Corpo .... Uon:
In January 1991, the City loaned $2,100 to the Palo Alto Housing Corporation
(pAHC) to assist in the ""'luisition of an 8j>artment complex. The loan is .-.idena:d
by • promissory nole for twenty years bearing 3 % interest, the note being secured
by • deed of trust. Under the Ienru of the note, provided that the PAHC has
operated the complex rneeIing speci/iecI targets for OCC"pancy by very low, low,
and moderate income houseI!olds (as def.nedJ during the preceding year, each
January, $141 of principal and interest shaU be forgiven by the City. In January
1992, such an amount was forgiven, with the result that the outstanding principal
balance of Ibe note at June 30, 1992 is $2,022, wmel, is I'Oalrdod in the City·s
Special RevC%lue F.nd.
Budgetary -GeneraUy A,mwtcd Ac;.opunting Principles roMP) R.qx>rtin~:
The following recoociliati"" presents comparioons of the ieglIlly adopted budget (more
fully described in Note 1) on a budgetary basis, with the budget as adjusted to repre=t
a GAAP basis:
Special Upit&l
a......I Rev ..... Proj"'"
..E!m<L Jl!IIL ..l'l!lIL
uccu (If reveolle6 and other ~i.na: IiOUI'Ce8
0'\'lII' (under) u;petxiitun8 and other !i.naz&cina:
.... (bwl~ bam) $(3.578) S 760 S(2,450)
Adjustment for e:ocWllhn.'1CCll ...loW ...l...m ~
:exoe. of I'eVCOUC5 aDd other fmaaci.D, I!!IOW"Ce6
ova-(w:o.det-) elpe:xlituzu mel 04hcr financ'.D,
_ (G.'-AP basi> bud,..) L.l!1: u.w l..l..m
57
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CITY OF PALO AI"TO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30,1991
(m thousand, of dollar»
13. Adyam:es from General Fund~
During fiscal 1989 the C-.eneral Fund adYllJ1ced $941 in working capital 10 the Storm
Draina&e Fund, which was reported as a Iong-Ierm liability in the Slorm Drainage Fund
at June 30, 1990. During fi'C81 1991, the Slorm Drainage Fund repaid 594 of its long
term liability 10 the General Fun<!. During that same year i! also receive<l an additional
advance of SI,320 from the General Fund. During fiscal year 1992, $1,720 of the
advance was repaid and the balance at June 30, 1992 is $447.
In fiscal year 1991, the General Fund advanced $500 10 the Street Improvement Fund
10 be repaid from fiscal 1992 gu "'" reven_. This amount was repaid du.";"g fi'C81
year 1992.
14.~:
Effective January I, 1993, the City will be replac'.ng the curren! City Employee and
Retiree Health Plans, self insured plan" with the Public Employees' Me<lical and Health
Care Act (pEMHCA) plans .. The change in health plans is intended 10 re<luoe exposure
10 WlaDticipated COU swings poSSIble under the self insured plans. CalPERS, os
administrator of PEMHCA and • significant purchaser of healthcare services, is able 10
"""""", moni!or and negoIiatc • wide rage of healthcare contracts, which allow. their
members 10 access a variety of quality plans. Costs associ;ued with health benefit claims
incurred under the current plans will be reflected as liabilities of ~ie General Benefits
and Insurance Internal Service Fund at December 31, 1992.
58
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INDEX TO SUPPLEMENTAL SCHEDULES BY FUND
Ge>cral Fund . • . . . . • . . . . . • . . . . • . • . . . . • . . . . . . . . . . • . . . . . . . • . . 61-68
Special Revenue Funds . . .. • . . . . • . . . . . . . . . . . . • . . . . • . . . . . . • . . . , . 69-80
Debt Service Funds ...............•...................•..... , 81 ·86
Capital Projocts Fund . . . . . • . . . . . . . . . . . . . . . . . . . . . . . . • . . . . . . . . . • 87-90
EuIerpIise Funds ....•..•..•..................... , ......•.... 91-102
lnIernal Service Funds ........................•....•......... 103-110
Trust and Agency Fum!; ....•....•.•..............•....•...... 111-116
Ge>cral Fixed Asset.! Account Group '" ........................... 117·122
GenenI !.DDe' Tenn Debt Acrount Group ..••••..•......•.....•...•. 123-124
59
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~ -
~ -, ...
...
~
"\
.... ..;
-...
• -
"
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GENERA!, F.IlNt!
The Gonen!l Fund is the general operating f.md of the City. It is wed to aC<XJIIllt for all financial
moun:es committed !O filwlcing the lerVi= lhat the City performs for its citize:l., ex<:qJI those
~ to be ","",unted for In another fund •
61
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. ~ .. '.
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• . ,,<: ~ ";;" --.
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This page intentionally left blank.
62
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CITY OF PALO ALTO
GENERAL FUND
BALANCE SHEETS
(m thoUl3Jlcis of dollArs)
~:
Cash and investments
Receivables, !lei:
A=ts
Interest
NOleS
A<Mnces to 0Iher fund
Stores invenlDly
Total as.stts
LIabIIItIrs:
Aooounts payable and :.c:crued liabilities
Acaued salaries and benefits
Deferred revenue
Total liabilities
Flmd equiIy:
Fund baLinces:
Rauved for:
&lcumbrances and reapproprialions
NOleS
Advances to other fund
Inventory
Retirement system rebate
Unreoervo.:I :
Designated for:
Streets and sidewalks/school "t.! projects
Capilal projects
Contingencies
Total fund "'lull)'
Total liabilities and fund equity
63
•
lWlc 30
1m l22J.
$22,387 $14,253
3,795 3,481
501 50S
420
447 2,667
~ --1.lll2
m.J.7l w.ill
2,340 1,867
l,31S 1.009
-lli ~
~ ~
3,763 4,006
420
447 2,667
1,00 1,109
2,166
485 632 ~' J:~ ,
11,366 5,415 i
--UOO ~
~ 12242
m...tn $224)5
r·i " <1
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CITY OF PALO ALTO
GENERAL FUND
STATEMENTS OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES -BUDGET AND AcrlJAL
fm tbou:sands gf dofia.n;)
Veal F'*'" Juge lQ 1m
a..-
T .....
Propaty ..... $ 8,395 S 1,555 $ 160
Sob ..... 13,935 14,m 75'
Utili:y -.' IU. S,2.1() S,l49 (81)
T_ , IC, tax 3,250 3.lIM (146)
011...-..... -' '""" ~ ...Lm ...ill)
TOOl! ..... 14,21.5 34,85' 644
Pire promctjoG aDd emerreocy O?I1BT"rniceti on
-=-3.931 ).-(23)
P.rG!21 otbet aemcirs 350 )71 20
SeMce rees IGd penuiU 6,S8~ ',57G (19) -......,. 2,008 Z,O(» SS
-~ ... (486) (1118) 31.
Od...-~ ..J&Z -ZZl!
Tac.I ........ ~ ..suL! ~
E~_
CunG oponIiaoo:
Atww f
" 9,835 .,slll 1,316
PubIi< wort. 8,6n 7,ill I_S48
Commlmi'Y~ 3,""-' 3,313 29S
.PuWic aIely -Polioe 14,189 ll,t7, 1.113
Pubtic ..e.y -F ... 10,692 10,127 60S
Sociai 8IttYicu 12,86l 11,11' 1,047 Sd>oo! ___
-Lm ....M6! .JQ3.
ToCIIl mpenctitunw; ~ ~ .MI1
Exceaa ofAp'Dil.iIUt'Cl over ~ ~ JUli) .Lill
...~ ..
;.,,+-'''''''
y"" ED<Iod
JUDe JO,
1991
!tt:f1 W
$ 3,109
14,140
",967
2,969
...l.ill
33,822
3,$<51
436
6,168
1,919
(198)
~
47854
7,830
5,871
I,m
12.&67
9,762
11.025
~
..51.!QQ
~
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CITY OF PALO ALTO
GENERAL FUND
ST ..... TEMENTS OF REVENUES, EX?ENl>1TURES AND CHANGES
IN FUND II.U-'.NCES • BUDGET AND ACTUAL, Cootinu<d
(La tbouG&Dds or doJlars)
0IIIa-f"....a.. __ ( ..... ),
!lpoomIiq: ..-"" _~ SpociaI_ FUDd
F __ SpociaI a.v..... FUDd
Spoei&l DUIrict Spoei&l ~ FUDd
H"""", Iqo •• _ Spocial Reveo .. FUDd
~-Tot.! openlioJ tr1Imfen> iD
~-Copi:.Il'rojeco; fwd
Dd><_
Total ~ bmsfers out
To<ol .-fiaaociag .......
m-of........-and_~ ___ (_)~0Dd
-~ .....
l'IIod boIaDoo, ~ of you
ltaidual equity trmsfet in;
Cap;"" l'rojeco; FUDd
Fuad boIuIce, "'" of you
6S
---y"c&r &ded June 3Q 1m
v.n....
Fav ......
~ MIl!!! illPfa,""",!el
100 180 80
127 n (J5)
200 200 ., 15 (27)
...1>.ill .li.W
~ .li.m ----ll
0.3(0) (2,204) 606
~ ....!MID
.1MS!) JUM1 ~
-1l.Q!!f .l.MH _.....w
(J,573) 4,458 8,036
19,24-;: 19.24'
---.W. ~
~ WJi!
y.., Eodod
JUDe 30,
1991
Agpmt
134
31
110
24
.ll.ill
-W!!U
(5,747)
----'U2)
~
~
(181)
12,S8()
I
<
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•
~
SIJaria: aDd beDefit.
ccatract IetYic.w
!iappHoo .... -.nab GooonI_
......... 1OaM
Focilitielmel ~ ~
Pubtic """""'
s.w;.. __
("...tmct~
!iappHoo .... -..w. GooonI_ _ ... 1oaM
F_ .... equiP""'" ~
eo.....ity aMmom<at
SaIarieI aod beaef.ra
C'.aaIDct_
Sappti<s ... mo!aial>
CloocnI_
:g..,., mel Ieuoo
Focilitieo "'" equ;_"'-
-/
CITY OF PALO ALTO
GENERAL FUND
SCHEDULES OF El<1'ENDITURES
COMPARED TO BUDOcr
(ID _ of dollan)
•
. --.
.,(g[ EoMd I~ ~. 1m y ... 1!Dded
I1lWs! MIlaI
16.923 $'.48
1.681 1,090
236 170
194 6SI
I. " ........w --1J!i
....!..ill ....a.m
",997 4,801
1.923 m
629 oK!
0.., 147
33 1
--1.QI ~
..J.ill ...1.U2
2,731 1,641
490 377
4J 31
190 lJl
5 S
-.& --11
3.608 ....uu
66
Variance
Favorahk
CUgfavcrrab]el
S 414
S91 ..
136
--.!2
.l.lIli
1%
OSI
166
140
26
-M
~
90
III
11
S'
....z:
~
JiJ:Oe.30,
1991 -
$ 5,592
1,26'
16a
547
11
~
....1JU2
'.-l,()4S
"~3
t9
S
-D
...i.lli
2 ....
173
34
195 • ---1:!
...loW
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-' ...
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...,
-""
-.
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~
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..
PDb60 oafdy • Police, SoIorieo oaoI _to c-... ___
s.ppIieo """ IIIOIeriab a-.!_
_ODd "-0
PociIilieo """ equi_ ~
PDb60 '"""Y • Foe:
s.Ja:ne. aDd bcacfitll
Coo!nct .....,..
~"'1DOl<riW GcoonI_
__ ODd """'"
Paoilitioo a.I "'1'"_ ~
SoeDJ aavicer. -"""-c-... ........
SaJ'pIioo ODd moIerials 0-1_ !leotI"""_
Focilibeo ODd equipmoot ~
N ........ _ ......... , _lite.,.,.....,..
. ,-.
CITY OF PAW ALTO
GENERAl. FUND
SCHlIDULES OF F.)(J'ENDITURES
COMPARED TO BUDGET, Coatioued
(ia ~ of dollan;)
l::c:u: EI:a!k4 ~ ~ 1m
VariaDce
Pa\-ocabk
~ A<IIIo! CUpfayorabk)
SI2.IU $11.47. $ 71'
713 5!3 160
245 '" •• 01. 742 174
17 IJ • ---U!l --2l -1l
-1.U.I2 ..u.m ..Lill
9,597 '.121 <&;
337 217 110
90 114 6
45"7 3., 58
3 3
~ ---lA§ ---Zl
-12m .n.m ....w
7,m 7,731 186
1,919 1,421 491
I,on 114( 165
1.319 1~172 147
556 540 ,.
-1.l!! -...B ~
.ll.ID .lLIli 1 047
J.m ~ --lQl
Toal ""I"""fi-, """'" l\md !W.l!i ~ ~
67
Y ... Eoded
JIIZ!Ie 3D,
1991
Ac!uU
SIl,35"7
643
216
499
10
-ill
.ll.l2Z
9,138
201
81
27&
2
--.n
~
6,745
1,593
925
1,010
527
.---.m
~
2..W
155400
Tbls page illwutionalll' left: blank.
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CITY OF PALO ALTO
Special Revenoe Funds an: used to aro:nm! for the proceeds of specific revenue 50= (other than
ageDC)I fUnds or major capitil prcj=l that are legaliy reslrict<ld to CJ<pendirures for sp<cifiOO
purpoocs or for which S<paI1lle accounting is required by iIlrninistrativ. action.
The City maintalns tbe following Special Rev."..., Funds:
• Street Improvement Fund -established to account for the ronstruction and
maintenance of the road network system of the City. Financing is provided by
the City" share of stale gasoIi..,. taxes.
• Feden! lin ...... Fund -establisbed to aaxJWIt for momes received by the City
from the Federal Community Development Block Gnont progrun.
• HoosinJ .... Lieu Fund -established to account for monies received from
industrial and residential develope" to provide housing under the City" Below
Market Rate program.
• Special Districts Fund -established to acco'Jllt for monies derived from parking
permits and for maintenance of various parking lots wilhin the City.
• TraDSporl:ition Mltiptlon FuBc! -established to aroount for monies derived
from fees or contributions '"Guire<! for transportation mitigatiOll issues
encountered as • result o! City development.
In addition, interest L~c("'ne and expense of tile City of Palo Alto Golf Course Co!pOration and the
City of Palo Alto Public Improvement Corporation are pre=tted withln the Special Revenue F!lJ1ds
=cnts.
69
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CITY OF PALO AlTO
SPECIAL REV-r.NUE FUNDS
COMBINING BALANCE SHEErS
(l1\ (housand. of dollars)
!"(lC :l!~, 1m s_ Fe:ter.!l Hoosin~
[mproy§tllcot Ikt= l!l:Lia
Assds:
cash and iJlvesbr .... u $J,909 $ (lS6) $3,689
Rooeivables, net of alloWM"" 73 rn_ receivable 32 60
NoleS J.&ii .utll
Tocal usetI ww. 1..m u.m
Liabllltiols: """"""Is payable and
ac=ed liabilllie> ff} 280
AdvaJ>(es from O!ber Ftl1lds
Total liabilities ---.fll .....lB!!
Fund oquIIy:
Fund boIances:
~ fl)( OIlCUmbzances &15 19 5
R....-ved for rcappropri2li"''' 445 S94
Resernd for ""too 1,066 2,ml
Un=od:
De<ignalOd for sp<cial
revenue projec:t5 681 3.464
Mcumulall>d deficit ...f.WJ
TOUIl fund equity ..1...5ID -ill ~
Tocalliallilides and
fund «{\lilY 1l..2i1 1...W ~
70
special
~
$933
1
16
W2
:;0
....-lll
920 I
~ I
m&l I
I
I
I
-'~ ..
.' . .7
,
.;
..,
II.!DC 3.Q 1m .. TIansporoUion Public Golf TQtals ll!m: 30 1 -Mitigation Im»rovemcn t ~ 1m 1m
... $1.038 $ 7,413 55,996
74 545
13 121 114
,~ ~ ~
"
'" 11..lW. ~ ~
.. 379 250
1 ~
~ ~
"'
I-839 178
• 1,039 2,219
3,087 3,225
is
1,051 6,116 4,418 ..., ---.fZW ...ill.Q)
,,," -L.llll ..lJt.lli ~
~
-' ~ --~ i2.m .,
'"'
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CITY OF PAW Al.l'O
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
(in ihou=ds of dollars)
Year fJlskd ,wn~ lQ i 991
Street Fe.letal Housing
rmprovement R~~!.l' In:l.il:IL
RIol-_:
Gas tv: $ 984
From o'.her agellcies:
Community Development Block
$1,100 GIallt
Fodera! UIban Aid 193
Interest earnings 108 44 $ 247
Leosoo income
0Iber:
State of California 42
GreaJ Western Bank -Loon payoff 10
Housing-in-Iieu -Residential 141
Housing-in-lieu • Industrial 213
Sale of Seal. Well Site
Traffic Mitigation -Transportation
Univenily Avenue Parking
California Avenue Parking
Contributions and don:uions
Total """",ue.s -1.ill ~ --.fQl
Expeodltmes for special .......... proj«15 .J.m -1ll
Excess of revenues over
expellditures .l...ill -----'-1W ~
Otbu nngwi"l uses:
Operuing Ir.insfers out:
Gcner.!l Fund (IBO) (107)
Capital Improvement Fund -iliJ)
Total transfers out (623) (107)
Refund of prior years' program income --L2W
Total odler financing uses --'lli) ~ --
Excess of revenues and other
financing sour=; over (under)
expellditures and other
financing uses 704 (470) 488
Fund balances, beginning of year
Housing Improvement Program notes
1,237 1,384 5,002
Fund ba1plH'f'!S, end of year W:U 1...2ll ~
72
--
Special
~
$ 58
254
79
.l2l!
21
~
(200)
(200)
allQ)
341
S79
~
---.-"""--".-
'. ;~-~~
~,
_\
I
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-.
i~
..
(ear Ended lune 30 1991
Transpo:tatiOil Public Golf
Mjtin rion Inmroyemcru Cs:uw&.
$ 58
67
--!2)
(2)
123
928
$25
466
73
$ 8
59
1...:...
ToW Years
Ended lune 3\),
1m l22l
$ 984 $ 950
t,IOO
193
548
525
42
10
141
213
67
254
79
--1!!!!
~
--L.m
...l..H1
(487)
~
(932)
-.illID
.lLlW
1,186
9,130
361
1,037
24
218
791
WI
385
273
76
(349)
-ill1l
(1,122)
2,620
5,317
-LW
12..U!I
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,
CITY OF PALO ALTO
SPECL'J. ltE VENUE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDmJRES AND
CHANGES IN FUND BALANCES· BUDGET AND AcruAL
lor the Jear C!DdeJ June 3iJ. 1 m
wi~ C01J!P"Sftlive ~ fur year coded lime 30, 1991
(iD ~ OJf 001111&)
Street V:uimce
~ FavOTabte .Act1W
~:
Gao ...
From other i~
r....m.ity Dovdop_ I!lock Gnu!
_U'-AXI -..,..,..
t....inoome
Od>er.
State or Calitomia.
Gt'bd WeIIten1 Baal::. Lola. paYDff
Sale of Selle Well. Sir.e
~.JI,.;.....w
~.-...w
T ... 1lic Miciptio:a • T.-pott&tioo
UDiven:1ty AWIDJIe. Pa:ttciq
Califomio A ..... l'utcing
CQ"tti_cod __
Tac.I .........
E I " Ei r ... .,.w reftl'IUe projectt
~ of ~ O¥a' upemdibltell
Otber r........:iol .....,
Operati.n& tr&ndenl out.:
o..wn.l FUDd
c.piW~FUDd
'rocal trmdtn oat
R.tAmd of prior yan' pro£Rbl iDcomc..
Tae.! othu fuwItiq .....
.Exccaa Dr ~ aad ~ finalcina IOUf'CC'#,
over-(WIder) ~tutc& &lid ~
m...c;q ....
:r_ !>oIaDooI. bqJiooin, of yeo<
~~IPropm"-
74
~ &mil rud.vopble) -12:2L
$ 873
82
25
J§Q
....m
(100)
...mlQ)
(900)
(900)
80
1,231
1W.U
1.93
lOS
J..m
J..m
(130)
~
(61.3)
(ill)
71)4
1,lJ7
~
$111
193
z,s
17
(SO)
.l1I
m
m
6"
$ '150
89
24
-LQM
~
(134)
..!llJ)
(907)
(907)
156
1,081
Wll
.... '-" ........
•
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I
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CITY OF PALO ALTO
SPECIAL REVENUE FUI'o"DS
COMBlNlNG STATalEN";"S Of REVENUES. EXPENDlTUR'£S AND
CHANClES IN fUND BALANCES -BlJDoJET .. .NO AcrtJAL. Cootiauod
for tbtl yetU «ldcd Iune 30, 1992
with ro~ve toU!.o for year mded JUlIC 30, 1991
(111 tbov.&a.a48 or dnilan)
-......:
0.. ...
FtOIIl ocbu ~
Commuaity ~ BIocI: GnDI
P..-o! U_ Aid --.. r.-moomo
0Ihtr.
State of Califomia
en. w....., 8001: -r.-J>&yaff
Sale of Sale WeD Sjle
~Iieu-_
E~-~
T..roc Miliplim -T"""""""""
UBiwnHy A....,.-,
CaIifonWo A ...... PariciDJ
CODtJ"i1tatioas aDd ~DIQI
TOCol......-
hi few d fOC' ipeCiall"I!t'mut JII"'O.i«U
-of ............. (ltodor) apooditun:o
Other r~ 1JIItS:
Operatina: tnuf'en: out:
G<oonl Fuud
C-.pitaJ luipimUDQJI FWid
T otaI tzaIafor out
RefuDd of priof' yean. prorram incottae
Too..I odoa-fiamcina .....
E1c::eIiIIJ of 1IJ\'CIIUCII aod oCher ~ IOUI'CeS
over {UDder) expeaditura aDd otbcr
~-
FUDd --. tq;.mlaJ of y ....
Houomg Iqno ........ Pro&nm .....
76
$35 $51
2% 254
80 " ..IS
.ill ~
.ill ~
(200) (lOll)
(200) (lOll)
= lW)
211 341
579 m
172!l U
VariaDao
Favor"lbk:
ClInhyonbJol
$23
(42)
(1)
..I2l
.1.l2
130
139
273
7.
(no)
(1 H»
278
•
I
C
C
a
I
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I
I
I
I
I
I
J~ l~ T,--.. v ........ Public V&riai=
l{1jj~_ Pavonblo Actu<I 1nvm:lvcU£Zll Favorable AoJuaI
IIIIUI!I ACIlIII fi!a!!i''-cra1>Ie} .ll2l.. ilIIIm Al:!!aI Q.!nhvorable} ...l22.L -
"
-:
$29 $511 149 $15 S 15 1479
"" 466
-J -67 3&5 -
,',
..l2 ~ 96 ~ ..m ..ill .m
--: ..ru ~ 479
1 ...12 ~ ..2!! ~ ,
•
~, -ill ...m
'!'
(1) (2)
"'! -ill -.W • -29 U3 .. 434
. ~
928 m ... ..
, .wz wa J2S m! -
• (Cootinued OIl fonowinJ pqt.)
77 ...
/
" ----~-----~-. .,...-.,.
CITY OF PALO ALTO
SPECIAL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES. EXPENDITURES AND
CHANGES IN FUND BALANCES· BUDGET AND ACi1JAL. CcnJiouod
fi.x the year ended: JUDe 30, 1992
with compatati"e total5 for yeu eoded. JUDe ~O. 1991
(iD ibousu4s o~ dollAn)
1992
Vari&DCf;
-221f Couae Com, Favcn.bJ.e Actu&!
JlArooaJuos:
0.. ...
From ott. arrnciea:
c .. "Iy Dovdopmart B!ooI: G.
Fodonl Urn.. AH! -....... 1..-._
Od>or:
..... of CaJifomia
a-"' ....... Bat . L>oo payoff
SUe or Seale WeD Sile
~-R '1-ti•1
~·1DduouioI
Tnffic l\IiUpliao. T __
UIlMtoily A ..... -.
~ A"""", -. ~_aad_
~ ....... ror "*",,.-proj«U
&ce. of reY'C':D.IeI over Q~
Other-r~ IllS:
<lpentiof -. """
Gco<.o! F"""
Capilai Impftw"""" fWld
ToIaI_ ...
RefQad of prior: yean' prt)Irml iDc:ome
T"""_~_
u-of ......... aad __ 8
IIDW'CeII avec (UDder) ezpeadil:lma and
-~ ....
Fuod __ • ~ of jar
H......,~Ptoanm .....
Fuod __ (dol"odJ). ood of y"u
78
BlIW! t.ma! ru.r.V9!IbI.\ ...l2ll.
$ •
59
.e
.fl
$8
S9
.i1
LW
_21
...ll
-
..
I
I
I
I
I
I
I
I
/ .' .
I2S!J Soeci&I R~!K: 'Fund. V......,.
Bud&« AduaI Flvon.bie """'-l
..1m. .lm. OJpfav!?f"!Nr) .mL
l 873 $ ~ $ III I 950
46S 1,100 615 JIll
193 .93
416 541 132 1,037
Sl5 525
25 <I: 17 24
11 10 218
SOl
100 141 41
J SOO 113 (287) :091
~ 67 )IS
"'" 296 154 (42) 273
80 ~ (1) 16
-lS --.llQ
..1.ill. ~ .l.ru .!om
-m -Lm !UW -2.!iI
, ..Ll!2l! ~ --111 .1.m
~
(469) (417) (18) (349)
.....!fQID ~ -lli --.ITill
~ (1,269) (931) 331 (1,122)
-.1m) ..m2l
" !l.m) -1Lllil --1QI Jl.m)
.".
760 1,116 426 1,62!J
9,130 ',1Jf 5,317
..l.J1.l
I2J2g IW!I l..Sii 12.W
-
79
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80
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CITY OF PALO ALTO
DEBT SERVICE FUNJ)S
Tbc Debt Savioe Funds arc used to account for the accumulation of re5Olli."'"CU for, and the payment
of, genenJ long-term obligalioo pri.,cipal and interest, other Ulan obligations pa)'3ble from
Enterprise and Intcmal Servi<>o Funds,
The City maintain.s the following Debt Service Funds:
• Te<'IDIID Leasr Fund -established to acwunl for resources used ",lc1y for the pllIJlO'"
of paying the principal and interest on the 1oIlg-term lease of the fonr.er Terman Scbonl
with the Palo Alto Unified School District.
• GGIt Course Fund -established to account (or resources provided from the General
Fund (or the payment of principal and interesl :wocialed with gencnJ obligation debt
issued for !be City" golf COlIne, and certain reserve requirements.
• Telepbooe Lease FImcI-established to """,unt for n=uT"," provided from the General
Fund and wed solc1y for !be purpose of paying the principal and interm on the long
term telepbooe equip""",! lease.
• am Center Fund -established to a<:GOun! for resources provided from the General
Fund and wed solely for the purpose of paying the Civic Corter Certificates o(
Participation as ihey bec!Jme due, and certain reserve requirements.
• Special ~ Debt Fund -established to """'un! for the collection of bonded
assessrnrots from certain property owners for the purpose of paying the principal and
interest on improvement hoods as they become due and for collection of special
a,,,..,'IDf'IIU from property 0W11eI3 within the University Avenue 3J1d California Avenue
Parking Districts oolely for the purpose o( paying the principal an1 inte=t on the
parking bonds of the two cfu;tricts.
81
.' .
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,,"';: • :,,, <,' .. '
CITY OF PALO ALTO
DEBT SERYlCE fUNDS
COMBINlNG BALANCE SHEETS
(III thousands of <lolJarl)
Tmnan
~
Assds:
~andin._ts $1,770
ltW:rat receivable
s~ _IS receivable
A<x:ow1ts ~. Olher
Total assets ll.ZZ!I
Ibbl!ltle<:
Ilefi!mocI revtnue and od>er liabilities
Due to Cqilal Projects fund
Totalliabilili.o;t
Fu1>d equity:
fund~:
Rest.rvcd fo< debt ~<e .1.I?!l
Til!3I fum' equity .1.11S!
Til!3I liabililie\ and fund f<luity U212
32
,~ ...
llln~ lQ, 1m
Golf Telephone
~ lac
$173
1m -
..ill
..ill
~
1wK: 30 1m
i-$2,837 $ 746 SS,SU $3,945
28 18 48
7,995 7,m &.419
~ ---.J§. ----M
am ~ w..m
7,995 S,002 B,420
-lJi
.:Lm J.m ~
•
83
,
'-
CITY OF PAW ALTO
DEBT SER",lCE RJjI,1)S
COMBINING STATEMENTS OF REVENUES. EXPENDITURES AND
CHA.lI!GES iN FUND BALANCES
CUI thousands of dolJan)
yr-ar Ended June 30. 1992
Terman Golf Telepbone
~ Qmr& I",g
Re .. """,,:
Special assessments
From other ligenere. S 224
!atcrcst earnings -ill 1-2
Tolal _en""" ~ J
Expead.iluns:
Debt servke:
Principal rttirement 39!i 7S $96
Interest an<! fuca! charges -lli ~ ---l
TOIal expenditures ----lU 144 .J!2
Ex=-of revenues under
expeOOiluies ~ £ill) ..!22.l
Other finane'." &aureeS (uses):
Opeming lr.IllSfers in:
GencraI Fund 130
Proceeds of bond sales
Tolal opetaling transfers in -1Jl)
Opetating transfers out:
Capital Projects Fund
Tolal operuing transfers out
Tolal other financing sources (uses) -1Jl)
Exces.. of revenues and other
financing sources over
(UDder) expenditures and
other financing uses (348) (5) (99)
Fund balances, beginning of year 2.118 178 99
Residul1I <quit)' transfer OIlt:
Enterprise Fund
Fund bat."...... end of year 1L.rZil 1.l.7J L
S4
I
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---'-""'WP-[.
'-
!
"
"
Year Ended June 30, 1m
Sp<cial
Civic Assessment
CmI=I Deb!
LBO
-B!l
165
~
.-m
~
610
..l..828
~
1,764
836
5994
----.l
~
420
..ill
..w:
-1
8
822
85
Total. Year>
EcdOO June 30.
1W .1m.
$ 994
224
~
..Mfl
1,320
4,053
$1,016
216
----ill!
~
1,289
..l.8S!1
.J..U2
LJ....ID)
889
---182
..Llli
..Lnfi
..illi)
(2,128)
6,184
, ,
!'-"
Ii . ' ---IOIlIZC.
'/
., . ".,'
This page intentionally 11'l't blank.
86
· --;:" ..::.~ ~ .
,-,-~ ~ .:(~~~~-:-.
CITY OF PALO ALTO
Cbl'ITt.L PROJECTS FllNI!
The Capital Pmj0ct5 Fund is used to """"un! for l'.nancial rewun:es to be used for the a<:quisitioo
or coostructioo of major oapital f.u:ilities 0Iber than those financed by proprietary funds and specW
""'''''''' funds.
87
Assets:
Cub and i;,veotments
Accounts receivable
Due from oIhe< fund
Interest receivable
TotlI assets
Uabl6ties:
•
• ,j: -,
. ' .
, .,:.-;' .. '
!A''':''_~~ ...
CITY OF PALO ALTO
CAPITAL PROJF..cI'S FUND
BALANCE SlffiETS
(m Iilousand, of doUan)
Accounts payable and a<:crued liabilities
Deferred :revenue
ToIa! liabilities
Fund equity:
Fund baian=:
ReserYedfor:
Encumbrances and reappropriation,
TotlI f.md equity
TotlI liabilities and fun<! equity
88
June :>0.
$6,610
S85
130
1,157
---H
-l.m
~
~
~
$7,079
857
604
---12
~
.1.lli
-I.m:
am
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CITY OF PALO ALTO
CAPITAL PROJECrS FUND
STATEMENTS OF REVENUES A."ID EXPENDITURP..'l
AND CHANGES IN FUND BALANCES
BUDGET AND ACfUAL
(In thousands of dollars)
-rm 'C"nde,j J!:!m! ;lQ. 1!21
Varia>oe
FovunhIe
l!!!!Im 4l:I!aI l!.ll3fiy~' --....... S s S (6) _ of c.IifonIia Sl,817 1,017
DoaMiooo ODd C<lOIriboticm ""---IS. 36 (123)
Sole of _ Wdl Site
ToOal_ -W .l.W --1H
"qr •• , ... tor apital ~ ~ ..f.f9 .z.m
_ of ....... __ (lIZIdoo-)
.,P""" .... !M11l Q.m) .1.Q!!1
oo..r ~-... I_I,
~-"" o-aJ F1md 2,87~ 2,104 (666)
Utilitioo -c-u FUDd projeclo 141 141
Dok_PwoI
Spooi.II __ FIIIIda:
_",,"c. 800 ~ (357)
TAllie IIIilipIicoo --1 .--1
ToW~_;' 3,811 l,m (1,021)
_ cf refuodU!& boodo -lli --ill
ToOal _ IiDIoaciq """""" (_I ..t..m ..ulIfi !l.l1W
_ of """"'* ODd alb« """"'"" -.... (-)~ ..... ODd _ IiIIoDciq .. _
(2.450) (3'1) 1.0S9
"-I~~cfy_ i.m 7,255
ItooiduoJ oqui<y _ "' (out):
o-atPucd (562) (SQ)
hdomoISonoioeF_
PriDIO>c .....lli!) .....lli!)
,.,.. --. ODd of )'OR W!l ~ ~
89
\
.'--'-
y"" &Iod
ItICe 30, 1991
!lliiibill
S S91I
3
---W.
J..JQl!
.J.m
Mill
:S,7~7
79S
1,426
n3
1.141
.1.m
1.726
12, lSI
(6,s5O)
..JW
~
--'.-~
' . . ,
-;-' _ .. -.....
This page intentionally IeIl blank.
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CITY OF PALO ALTO
ENTERPRISE FUNDS
Eo~ FUDds are used to accoont for oper.1lions (a) that are financed and operated in • manner
similar 10 privaIe bU!inas enlClpriJes -where the intznt of the governing body is that the oosts (I. c.,
e>;penses, including dcpRciaIion) '>f providing gcods or services 10 the general p<lblic on a
continuing basis are /inanoed or recovered primarily through user charges; and (b) wb= the
guverning body has docidcd that periodic delcrmination of revenues earned, expenses incwTed,
andIor net iDc:ome is ~ fur capilal maintenance, p<lblic policy, management control,
""""""lability, or 0Ibcr purposes.
A separaIIO fund is maintained fur eacll of the City-<>Wllcd utilities, each of which is • self-supporting
octivity that reoden services CO a ~ cbargc basis 10 residents and businesses locaIed in Palo Alto.
The City maintains the foll<>wi:ng EoIt:Ip<isc: Funds:
• Water Fund
• EIcctrlo Fund
• Gas Fund
• Wastewalct Fund
• Refuse Fund
• Slorm DIaina&e Fund
91
. -
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I i~~~ "T. . ".'~> .. . '
CITY OF PAW ALTO
R'ITERPRISE FUNDS -COMBlNlNG BALANCE SHEETS em thousands of doUars)
Jun,,3QI99:!
l:Yiler fJ&&Irk
"--:
Cash and cash equivalents $ 2,035 S 62,898
Cash will! fucal<lgell1 107
Ac:cowrta """"vable, net 1,381 7,643
InIc-laI rec:eiwobl.> 39 1,005
Prepai6 expetiOO ---
Total =1 usets 3,461 71,653
Property, planl and equipment, De! .lUll:1 --1l.W
TotaI.....as llJ..W S143460
Llabllltlos:
Aa:oonIS p"yable and accrued liabiliti .. 271 3,179
Aa:ruod saIaria and bellefilS 64 201
Clmml portiM of =coue bonds, net 35
Clmml poni<lIl of apilal Iea:le obligations
Cumm ponicm of advance due 10 gon=! fund
Total =1 liabilities -m ---...l.ill
A=ued compeosoIed ab-= 89 114
Self insuranc:e 97 383
Revenue bonds, net 268
Ac!v= from general fund
Total liabilitieo ~ ~
FImd Equlty:
ComributaI apila! 7,684 15,840
ltdaint<I oamings ..lM.l8 m~
Total fund equity .lU!Z \39280
Totalliahilitieo and fund equity llJ..W il4J 4f1!!
92
, -,
...
-~\ . --. ('" ... -
QiI:i
$13,118
120
1,169
208
--12Z
14,807
~
m.m
1,006
70
39
J.ill
42
123
302
~
3,292
.li..ill
~
~
I
I
I
I
I
-'--'~
-~ -,
,
t
,
~'I 'i Ilm'lQ I22Z TOIllls 'I
11 Storm lunc 10
WNfCwatcr &.nix Drainage 1m l22l
'1
$ 7,019 $ 6,353 $1,335 $ 91,758 $19,243
t, _ 758 3,853 4,838 968
1,699 1,211 161 13,270 13,419
1-113 100 21 1,486 1,666
I ----Dl --.m
1=
9,589 7,664 5,370 IU,544 96,291
~ ~ .l...8li2 J§U72 155,568 I
~ WoW am 1274.11] $251 'S9
1,015 678 148 6,297 7,836
148 42 12 537 405
652 736 690
IS
...M1 ~ I ~1~
~ -.l2Q ~ -IJIl7 lQ,~
70 5 II 331 334
310 rn 1,011 802
10,198 4,588 15,356 11,590
-ID
~ -..m ..uo:z 24.715 23832 ~
29,889 56,705 56,690
..li.ll\O ...u.w ...lml m.w 111 llll
~ ...u.w ...lml 249.408 228020
~ ~ am n7~.It1 I~I ~2
93
-
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-.. ; ;
.;.
"'-..
.;.-___ ' ___ ....... ..,.~ .. -L ... &_-. ____ _
CITY OF PALO ALTO
ENTERPRISE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENSES
AND CHANGES IN FUND EQlJITY
(lJ! thousands of dollars)
r . -,-
C'
,..'
k.'
Yw :f.D~=sllyw: JQ l22.
C
I
I
I
C
a
a
I
I
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Opel atIDc """"""":
Sales of utilifu::s:
Customers
City 6q4rtments
WII.5ICW3ler _I
Sem<e C<JIlIICCIiOl1 cba.-ges and mi>ceIlan<ous
Other rev",,""
To4aI operating revenues
0peratiDr ape 'RS.
PurcIJaso of utilities
Admini>lrzlion a:>d geueraI
FJJginming (operating)
Reoouroe pIaruIlng
Operations and maintt:rJan<e
~ a:>d lLIllO<tizatioo
To4aI operating expenses
0p0raIiD& income
NoanperaIiDc rneuuos ( .......... ):
lnll:resl ilIc:ome
Inll:resl experuoe
Joint ~ deb! SONier
Loss OIl disposal of fixed .-..
To4aI ~ating revenues (expenses)
Income 1:efore operating transfers
OperatiQ& 1raDSCers:
Operating tra.,.I.,.. out:
Renl
CapitalProjOCls
Internal Service
Rate of n:ilJm
Net operating ttall!fcrt
Net iD«Jme a ... )
Retajned earuiDp, beginning of year
Jtetajned earuiDp, end of year
Contributed capiIaJ, lleginninjl of year
Cootribulioos
COlllribtded capiIaJ, c:nd of year
To4aI fund equity
94
~
$ 9,680
741
51
----lQ
~
3,987
717
145
396
1,405
----ill
--Ll!22
---Lm
223
-ill
~
~
(959)
(27)
.!l.2Q;\)
.ruB2l
~7
..1U.QJ.
~
7,684
~
~
~ ~
$ 63,410 $15,675
1,562 J44
199 US
~ ~
67,111 ~
28,397 9,203
2,022 890
436 144
2,468 468
5,009 1,18()
.......l.!l5l --ill
41 3i!Q ..u.m
25721 ~
4,379 922
(25) (28)
(6,939)
~ --'32J
Q&m -.ill.
23 114 ~
(2,502) (188)
(SO) (34)
(500)
(M~) ~
(2.S~) ~
13,564 3,009
IIl2 m -2l.ill
m ffil .lim
14,661 3,292
~
U~ --U22
~!~2 2§Q mm
'--"'"~
! -: Tofals
:'::131: End.I>:l J:IIIII: JQ 1222 Years Ended Jum: ?to, ,-WWcwat;r l!;Ws: Drainare 1m 1221
t. -$ 7,428 Sl1,452 $1,518 $109,163 $102,477
r 130 210 83 l,ln'O 3,074
5,995 5,J1115 5,027
10 375 720
~ .....ill ---1 ~ --1..ill
...l.4.W ..ll...ill ~ 122.053 114 9111
4,958 46,545 52,254
1,306 790 119 5,1144 5,093
1,071 641 12 2,449 2,570
3,m 3,969
6,156 2,602 330 16,682 15,253
....1.2fi2 ---.lll -----.6 ~ --U22
~ ~ ....M.Z 81.096 85 06!!
-..l.ID ...J.lli ..l..ill 40.957 .~
48S 4~ 172 6,631 6,578
(778) (1) (832) (967)
(6,939) (5,284)
...LUW 0,6261 1246)
.....n2J) ~ ~ (2.766) -n
....J.m ...l.ill "UQ2 ...J1.lli 29923
(87) !2,764} (6,!OO) (6,096)
<!J (22) (8) (141) (795)
(32) (532) (890)
(M45) a 556)
--1ll!2l ..a..:IJl.) ....mJ UUI8l (5337)
-, 3,179 (613) 1,277 21.373 14,586
..lO.22l ...u.m ..l.ID 171.3JQ 156744
..H.ll!!! ..ll.ill .J.ll.ll !92.703 I7I.3JQ
31,053 56,690 55,130
...u...l.@ -.U I 560
.l2.8B2 56,705 56 690 > ..
• wm w..w WW $249'408 $228 02Q I
95 I'
'-' -,-, .-•
, , ,
"
..
•
'".;t:
CITY OF PALO ALTO
ENTERPRISE Fm,DS -COMBINING STATEMENTS OF CASH FLOWS
(:n thousand. of dollan)
Cash flowt from opetaIing activities:
Operanng income
AdjUSlllleo1ts 10 rec:onciIe operating inco"", 10 net
cub provided by operating activities:
DqlnciaIim and amorti.zaIioo
Changes in assets and liabilities:
(lncroase) cIccrea>e in IICOOUIIIlI r=ivabJe
(Incm>e) decn:ase in u""rest r=ivabJe
(ID=asc) <lc=ase in prepaid expenses
lnoIeosc (<lc=ase) in lI<lt'()UDU payable,
acctuaI JiabiJitios and a=u.d salaries
and beocfits
lnoIeosc (deamso) in a=ued Jdf insurance
~ (clecreas» in a=ued compco.saIed
absences
Net cub provided by operating activities
Cash flows from JKlIIQJjlital financing activities:
Operating lransfers out 10 other funds
Net cash U9Cd in IlOIlCapitsl financing
activities
~ !lDde<! lun: JQ
~ ~
$3,427 $25,721
44S 3,058
(423) 829
23 88
342 249
(260) (4l8)
20 74
-11 ~
..J.lli ~
a.6a2) .12~
a...6W ~
1m
~
$ 3,820
453
326
28
104
(563)
30
-Cl.D
....!.ill
~
..Ll.!i6.§)
I
I
I
I
I
I
I
I
" ..... ~ ....... ' ..•....... . . -...
! , -
E n ~.
~-
~'l
I-
I
YC'II F..nd«' June 30 I~ w.stc:!fIJCjr BcWI;
I .
$3,581 53,271
1,969 313
(427) (157)
(20) 58
108
(172) (119)
59 21
-00 --lJ)
~ ..uM
--1lll2} a.zw
.. --1lll2} Cl.IJ2)
'.
"" ..
1222
DraiMlt
$1,137
6
1
3
145
5
--1
...l..12S
-ill)
-ill)
/
Totals
Yew Ended June; 3D
1m 1221
$40,957 529,841
6,%44 5,929
149 1,734
180 (294)
80J (83)
(1,407) 2,036
209 (148)
---ill ~
.£ill ~
il§..II!) os 337)
.!lUll) ()5 3J7)
(Continued on following page)
'i".
:'<~~'
•
. . . .. .
',' .: ~ ,
,;--.-.:., -------•.. -....... ,......-".,.~-"-'
crrv OF PALO ALTO
ENTERPRISE FUNDS -COMBINING STATEMENTS OF CASH FLOWS, Continued
(in thousands of dollars)
Year Ended Jyne 30. 1992
Yli1cI ~ Gal
Cash 1low1 from capital aDd re1aIed financing
activilla:
Aoquisitioo aDd coostIuction of capilli! assets $(1,397) $(7,861) S(1,6n)
Principal paid 00 revenue bonds (33) (36)
Proceeds of relundiD!! l>ond.s
Payment 10 escrow agent
Principal paid OIl capitalized !eases
Interest paid 011 revooue bonds aDd capital leases (6,964) (28)
Other JIOJIOjJCI3Iing gain (loss) (4) (22) (39)
Contribuled capital 1,'79
Advonc:es from G<ncral Fund
Net cash from capiIal re1aIed activities .LUlU) m,7Jill .!l.1W
Cash 1low1 from investing activities:
InIelCSl aDd dividends 00 pooled invesunents --.l2l ...!.J12 ---2ll
Net cash ptoYidcd by investing activilla --.l2l ...u12 --..m
Net in=a.oe (cIecreuc) in cash and Investments (276) 10,758 1,648
Cash, cub ecr.u-._ and cash with fIsca) agents,
beginning of year ...l.ill ..ll.W ...u.m
Cash, tasb equiftleuts and tasb with rlSOll aa=ts,
end crY=' S 2935 ~ w..m
98
",_,~"",,,,_w
, ,
" ,
•
liIilJ
a
I
I
I
I
I
I
'..
I
I
I
I ,.
-1-
1-
II!
·~ :,,,::~.> :.;;. .
;., ",'",
" " .
ra[ fJNWt rune XI l22l
WLIIiMjCr Bl:fu: I>rainaa~
$ (934) $1,131 S{l,S22)
(621)
4,502
{IS)
(778) (I)
(1,561)
(1,164)
.!.I..7l!l)
Q.m:l ...w6) .....u§Q
~ ~ -112
~ ~ -11l
1,941 616 2,698
..uJg ,.un .1.m
WZZ ~ ~
99
•
/ .'
Totals rem Il!ld~ z~~ JQ
1m m.l.
$(11,255) $(15,448)
(690) (967)
4,50:.! 9,65/)
(11,180)
(15) (2S6)
a;m.) (6,271)
(1,626) (246)
15 1,560
a.ill!) --1l.
112,56(11 C13 08Tl
....£.fJl ~
....£.fJl ~
17,385 7,120
Bll.m 13 !l2i
12Z,~ 1K! .U
I
· .'~'
CITY OF PALO ALTO
COMBINING BALANCE SHEETS -WASTEWATER FUNDS
ern thousands of doIlan;)
T""'"
lYm ~, 122Z J~&1
cqIltctiop IZIII1IIIIIII Ehrnw·tiOQl 1m 122l -Cool! ad .... oqoiwkmIo I 1,316 I S,103 51,.a I S,091
Qoob will> 6ocoJ _ 7S. 158 145
~ .............. 941 752 I,m 1.m --20 93 III 93
Propad----1QI
TOIIII car'ftIILI ..... 2,28] 1,3<l6 t,589 1,309
~,,,,,,,,,oq"; ... 16.347 30,0156 46,1IG3 ",926
lin -.JlI J!ill)
TooaI_ WJ!a ~ JW!) ~ .w.m
r.ithjlmee:
""""""" poyobIe ... __ tiobili ... 1005 !>09 1,f15 1.221
Aocnod_md_ .! 101 •• 114
0aRct pildiaa or R"W'"..me t.c.da. De( -----Ul -lli ---'G --W
TccrJ. camaI ~ -.lZI -1..ID --1.W ~
c I t!~ 30 «l 7f 106
Sdf ......... S2 221 31t 251 --"'" ...l.W ~ .1I.lD ~
TotaI!i.obiliti<o ~ ....2&.l ~ ~
f\md EquitJ,
~......, 1,945 21,382 (438) ~-31,053 -......... 2.ID .i.222 ~ ..IWl
Total fuDd equity ~ AID .!ill) ..!l.m 41,914
TooaIllobiliIioomd fuDd
equity ~ ~ JW!) ~ m.w.
[00
I
I
I
I
I
I
I
,I -
Ii
[.
,
\.
CITY OF PAW ALTO
COMBlN!NG STATEMENTS OF REVENUES, EXPENSES AND
CHANGES IN FUND EQUITY - W ASTEW A TER FUNDS
(m tl>o ... nds of dollan)
TOUl!
y .... EMod
1:£11: E~ l~ lQ, ~222 l_~
~ I~D!lU Elj tpizppogs 1m l22J
(lpondIrr-
SaIooof_
ClIoiorDon $ 7,428 'S ',421 S 6.070
01)1 .......... 7& $ 1,604 $(1,552) l3G ~a w __
.5,995 s,m s,rm
s.mc. [" CD c:Jsapa aDd -10 a 14
ooa... ......... ---HI -.!ZI) -m ----ill
TOCIIl """'""'" """"-~ J.ll1 .n.mJ -WI!!J JU;!;! 0,...,... _
_ of_
1,5.52 (3,552)
,U .. -:111 aDd poeral >lOS 901 1.JO' 1,152
~<~ 101 ... l.en 1,397
~IDII_ 146 S.4tO ,.m 5,600
Dqa .. aDd amodiraIioa ~ -1.lU ..J.!D ...LD:I
TctaI """'""'" ~ .....Ll21 ~ .n.mJ ~ ~
0p0nIiDai--l.m -..l!1I --...1.S1 ~
-,.......--(-): --74 'II 4&S 47& ---LmJ --1lW -..J:m! .....!1M)
Toe.I .. j ..... <_l -..!W) --LUll ----ll!Jl ~ _-.........., ..-~ ----nl! --...J.mI -L2ll
()ponIiJw --~---(8':') (87) (68)
CoopJaI pmj«u (I~l (3) (22) (59)
.... 0( ....... -Ull
N .. """'""'" _ ~ ---ID --1lI!l -ilW
Net iDcome 2,.,2 721 3,1'" 1,012
................. ~of_ ~ ~ ---1Ull ~
Retai:aed:"IU'IIiap.. -s: of yeu' -1.lli ~ --.lUll!! ~
"-11 ..... apitaI, ~ 0( yaor B,94S 22,S4.S (432) 31 f t53 29,.,13
~ ~ J1.1jf) ~
C Ii ? 1 1....,aI, <&4 of yaor ~ .ll.m -lilll .l!.m -1.I..m
TOCIIl _ equity ~ ~ l...WJJ &m ~
101
CITY OF PALO ALTO
COMBINING STATEMENTS OF CASH FLOWS
W ASTEW A TER FUNDS
(11\ Ihousands of dollars)
Cosh -. &om oponIiq~:
~-'4 to~~~co_cuI:t.
pIO"ided by -""' -Dqa ·"'i=md~ a.a,c. in _ -.:I tiabilit*:
cma-) _ m """""'" reocMbi< cma-) _ .......... ...,.,;.
De.:roooo (....-0) m P"'P"id _
__ (-l iD ....-pyab!e, -=-!
liobiIilieo.-.l """""'" _.-.I _fill
_(_liD"""Ooolf ...........
:u.:z.--(~) is! a::cnaed eo i ted ~
Not ..... provi<Iod by ."....... acIivitMo
Cosh_from [·IIII~oolM .... :
Opnziq aw f • C .. ID 0Ibet-f\mcb
CIoII __ copiIaI ood _ I'iaoII<:iq ~
.rqoi=ition .. ........ailititiw o! capc.l ....u
PriIIcipoI pad 011 ........ _
Proc:eoda of utility te'YSIIaO boad:a
h,YIDCILI Jo ~ apot
.interat j'IIid 011 mvawe 'booriII:
~ ..... _(_)m ___ _
N" ..... .-.. copiIaI _ octiviti<o
c.b __ ......... KtiYiIieo,
_ad _",pooIed_
"" ..... J"O"id<d by .. .....,.--
Nee iD;.:r-. (Ih:nuc) in cab md investmeu1l
c.h, ..... equ;..-ODd ..... _ fiocal.,-,
".,.,..., .f ,.,
c.h, """ equ;..-ODd .... with fiocal.,-,
ODd ofr-
102
You Ended
bmc; Xl 1992
S2.671
S81
(197)
(19)
34
(1,318)
(123)
(lgg)
1 908
1,388
(230)
(1)
74
(213)
44
--2
..L212
054
(498)
(S89)
(1,164)
~
LI.£!1l
JUlIe 30
S3,5B1
l.J9
(C1)
(10)
lIS
11,611
(6)
(934) (l,28())
(621) (904)
9.6S<l
(1l,18()
(171) (904)
(i.liC) 1,340
~ .....ill
~ .....£I
1,',11 (718)
I
I
I
I
I
I
I
I _
-.-.
CITY OF PALO ALTO
WTEBNAL SERVICE fUNDS
The Internal Senice Funds are use.l to acccunt for the financing of good. or servi= providoo by
_ deparImalt or "l!""CY to other departments or agencies of the City on a cost-reimbursement
basis,
The City mailllains the (oUowins Internal Service Funds:
• Eqn1pmeut RopIo~ Fund -establlihed to acrount for the accumulation
of resouroes to provide for CUIIent and future replacement of the City'. motor
vehiole equipment,
• Vehicle Malutf'D1we Fund ~ esta.blisbed to acccunt for centtal maintenance
services ... all City-owned vehicle:!,
• PriDtID&: Serrices Fund -established to account for centIal duplicating and
piJllting services provided to City departments,
• MaiIiDJ Serrices Fund -establishod to &IXOUl1t for oentIal postage and mailing
services provided to City ~ts,
• Genenl _ aa,11Dsunmc:e Fund -estabfuhoo to acccunt for employee
oompensaJed ab= and heallh benefits, and the City', self-insured work""
compen.sation and genern! liability programs.
103
•
---~.
"'.
CITY OF PALO ALTO
IlII1ERNAL SERVICE FUNDS
COMBINlNG BALANCE SHE..."TS
(Ill thotl5allds of dollan)
lur", JQ 12!a
Equipment Vehicle
R=placement Mainrenanre
fund Fund -
AsseIs:
C&sb and cash oqaivalents $4,755 53%
Accounts reooivabIe, net 78 9
releseSt reooivable 73 6
Inv."tory 123
Prepaid cxperues
Tota! =t assets 4,906 534
Property, plant and equipment, net .1..m
Tota! assets w.w ~
LIabilities:
Acxoun~ jlayable and aocrued ~ 63 61
Ac:auecI salaries and benefits 20
Accrued compensatz:d absences
Accrued self ins~
Capilal 1 ..... -=t l"'fIion -ill..
Tota! current liabilities 534 81
Compensated abser.ces
Sell-insurance
CapiUl! leases ~
Tota!liabilitios J..m --ID
Fund equity:
Contnbuted ""Pita! 4,839 !O3
Retain«! earnings ~ -.llQ
Tolal fund equity -1J...OO. ~
Tota! liabilities ar.~ fund equity w..w &l!
104
, ,
"
Printing
Services
-Elmd..
SJ61
2
163
...1M
mz
7
4
---Zl
32
--1l!
.nt!
1%
---Zl I -ill
mz I
I
I
7 q ._.
" "
",\ c
•
" "" .
./
--------
I~
,
tI 'I"" " -
C' lon, 30, 1m "
i Galera.l
ii -Benefits
" MaiIil1g and , -
Services Instmmce TO!llI! 1_ lQ,
~" fund £I.IIW 1m 1m
~
r $57 $15,533 $2O,lI02. $17,757
,-38 125 26
202 lM 245
123 121 ,
--.H ~ --1J.Q ' -
58 15,787 21,448 18,279
-~ -1...W.
m w.m ~ ~
341 472 432
2 550 576 736
4,759 4,759 4,268
2,972 2,972 2,690
-.m "~
2 g,622 9,l71 g,592
2,220 2,220 2,145
3,012 3,012 2,528 .. -t.m --L7!Mi
J ~ .ll.W ~
.,
5,138 4,1177
~ -Lm ~ ~
~ ...l.2ll .u.m ~
m w.m ~ m&l
lOS
'-
CITY OF PALO ALTO
INTERNAL SERVICE FU~fDS
COMBINING STATEMENTS OF REV'""clWES, EXPENSES AND
CHANGES IN FUND EQUITY
(In thousands of dol1;us)
()peratiaI ......",..:
Clwg<s for services
Total ap=ling =ues
0pa:8tiL$ .'1
AdmiDiJIrmoo 11>:1 Jmc:ral
0p0mIi0ns and mailttI:mz>ce Se1t __
Cxnpcnsa!od aboeDca ood 0Ib0r _
DcpnociaIioo ond _
Total opaalin& _
~-(laa)
N~"""""'(_): ----Gain co diJpo$a! t1f fixed ....
0tDc:r i.~me
T01al nonopo'llin& n:vcmxs
lnrome (lnss) before ~ ImUf<:rs
()peratiaItraDsr ... , C>pe:aliq _ in
N"iDcome(loss)
Rmjnrd t:IlJ'IIiDp, beginma, of year
__ OOI'IIIDp, end of Y""
c--... eapllal, ~ t1f year
Ccotributions
CooIribIoIed eapIIaI, end of year
TOIaI fund equity ""~ of year
106
Equ;pmem
It ...
Fygd
UW
...2..l2J
21
--L.ill
...llU
---.:w
347
(126)
110
-----.m
-1..l!il!i
_...31.
1,098
~
J.m
4,638
.---l!U
...!.!J2
w.w
Jurn: 10 1992
Vebicle
Maiil"j"~
Fund
am
~
1,666
.l.li/iiS
....m
16
~
-----12
-----l!U
301
~
~
103
-W
~
I'rinlinJ
SeMces
----ElmIL
lli2
.J.fil
259
..In
..m
.ill)
I
(2)
-li
---ll
..J§) I
(6)
..l1
I
--ll I 136
..1iQ I .l!l!i
Wl I
I
~.-" ..... ---
I
~
" '1 -
~ -Ja:KJ: l~ 'I -ClaIc:ml
~; <--
Benefits
MaiIiDi and
SeMces InPIJ8I)QI: TmJs Jww; 30
J:lmIL hod 1m .1m
j -c
m2 mm mom SZl.Zi1
..3J2 .2.Ull n.!m. ~
314 m 1,56lt 1,6Bil
1,Ii6Ii 1,632
2,364 1,364 1,475
22,456 ZZ,4M 2C,690
....lMJ ....l.m
~ ~ ..zuu .l6.lli
~ ..LU6l) ..LJ..m) .a.w>
3 690 1,164 980
(Ill} (72}
III 193
~ .....un ~
--.l ~ ~ ...J.ill.
-2B -1.l.2:Z ..1.S§ -W ..
----Sl!I ----m .-..m
28 1,697 3,111 I,SI3
-l.8 ~ -~ ..J.ru
~ .J.2JJ ~ -UIi6
.fi r e-T1 4,451
-oW -ill
...llJI -.U12
Ui u.m w...m ~
107
~------.-"
>'-"
CITY OF PALO ALTO
INI'ERNAL SERVICE FUNDS
COMBINING STATEMENTS OF CASH FLOWS
(Ill thousands of dollan)
cam flows &am opaaIiDJ oICtMtia" '-"'< ....... _)
AdjIJlDMlaD '" ~ opcnIIiDc mcame
CJou;) 1D lid call pI'O'ridcd. by
(lI8fldift)~~ D.,.. ......
CbmIca ill -. IDd IiabitiDcs: necn.c (~) ill aa;:ama --fncraIe in iaaerat: re::c:tYIbie
m=:n..: .. prqIIid ~
lDc:raa .. z.v..xy
I.Dc::raIe ~decIcar:) ill 1I:QJaIID~,
8Ca'ad ~ I:ftd axr'CI!Id:
IIIIria I::IIIId baIefitJ
hIc:raIe (dem:ue) hi aocnaod Idf --.. .."...."""---Net -. pruridcId by ('IICd ill)
~~
~-.... --o,.a-.-" --........ ""-
S 715
1,431
(77)
(l)
(I)
fiIaac:in&: ac:IMties ~
Cab fIotn fnIm c.pimT _ fdaIcd _"",..ie,,
AapIiIiI:iDn atd CXI"'lJIrGctio of capital ......
~i~pm _ ...... _
I:zIeaI paid .. ~ leue:s -----Net c:aIh pnMded by (..:I ill)
c:apdal niaIzd dvicia
Cub lkJwJ. flam ~ .c:civiti£s.:
~&DIi~an~~tm" ..................
Net cub p'OVided by ~
Na~iDc:ab_~
CaIb .... c.-..,.. W', bepmiaa of,...
CatII ad c:aIIIII ....,.at .... mel of yrar
108
(2,.37)
110
201
('27)
(126)
. ','
(10)
(3)
(2)
(8"/
S{[II)
26
(t)
(I)
• ..
('21)
(2)
•
I
I
"-~"' ............• ,'.' .
. ~
. . ". .
!to;]Q 1m
"""'" -., ....... ... -......... I21:il5 _.xi
..bIlL ..bIlL l!fl H2l
Sl5 sa.><2) O(l,Ml sa,31!)
..... 1,237
ve) I'O!') l>
(I) on "" (199)
116 U6 ('~)
0) (Ul)
(111) (UOJ (1))
'166 "" = --Ill ....All.
.l:! JJ.:mJ ...I.II!I -'LW)
---.-m -...m .-m -
<1,(1'1) (I,'SOl
).0<9 l,W >..<:7 -"" QI (-
~ IUSl
-"-lll
.~ ...1.Qii! ...... ..l£l!i
-' -~ ......w
..l -..lM! -!!Il
11 2,919 3.1;(5 2.'"
~ ..ll.$ .l!.7l! ~
~ ~ m.s ~
109
,_ai(
"'0-:''-'''''''' . .r
;.;.ii~~;...;t"::"'':'':~ '.:;:.~ -.cJ".'f,,':..,
This page intentionally left blank.
110
'" ... ,
~ . .... , . . , ..
j -
~
)
CITY OF PALO ALTO
TRUST AND AGENCY FUNDS
Trust and Agency Fun<!J are used to account for assets held by the City in a _ capacity cr as
an agent for indi"';duals. private organizations, other gGVermnents and/or other funds.
The City IlSe'I R<pendable Trust Funds to a=unt for progranLS from which the fund balances an<!
revenue may be expended for pUlJ'OS'" specifically designa:a:l by the program agn:em<:nts,
• nu. Police Academy Scholarship Fund was established to account for financing of
scholarships for this training program.
• "The IlaDrdous Materials 'I'ralIIiIq: Fund was establi5bed to account for the activity
of bazardoo. maU:rials emergency _'" training classes hosted by the City.
• nu. AnmW Seni<es Donations Fond acrotmts for all donations in this division of
the Poli~ Department
• The A...ts Seizure Fund was establisbed to aocount fOf seiz<d property and funds
as!Oclated with drug trafficking. Under Ca:ifomia Assembly Bill No. 4!62, the
monies are noIeased to II-.e City for spociflC expenditures related to law enforcemont
activities.
• The Child Care Fund was establiihed to account for funding of the Child Care
Master Pia., through the efforts of the Child Care Task Force.
A~ Foods are custodW in nalurc and do not involve measurement of results of oper3lions. "The
City maintain, the Deferred Compensation program estaIili.shcd for employees in an Agency Fund.
In addition, the Palo Alto Recreation Foundation Fund accounts for fund, received by the
Foundation in its promotion of social, cuItur21 and recreational events.
III
·-. ,
. f~
CITY OF PALO ALTO
TRUST AND AGENCY FUNDS
COMBINING BALANCE SHEETS
(II! thousands of dollan)
JUDe 3Q 1m
Expcn1able Trust Fund:;
Asse(s:
ea.h and cash cquivaJ<rus
inlercst ~I.
Total a&Set$
Uobilitio:s:
Accounts payable and other a=ucd
liabilities
Deposits payable
Due 10 participants
Due to Palo Alto R.ecn:atioo Foutl<lation
Total liabilities
Fund equity:
Fund balances. \II\Ie!ierVed and
undesignated
Total liabilities and fund «tully
Pulioe
A<:a<Iemy
f,dw1fitsb i "
SL3
111
Trainjng
53
J
.u
$75
I
I
I
I
--~ ..... -................. .
--,.-~
fupen4ahJe Trust Funds
AJseIs Child
~ ..!dlL
$31
~
..
.lsi .20
m ~
. ~.'
, . "'~
-.~~>-
June. 30 i 992
Palo Alte
.RecreatioII
Foundation
A wx;y F!!!!d
$135
........z
.wz
J.ll
...u.z
.wz
113
Defcmd
Ccrnpensation
Amu;yFun d
$21,161
21,767
.1.I..W
.m.m
Totals June 30.
1m 1m
$19,140
6 25
5 19
11,767 19,042
----ill
..lU!!l! ...l2.lli
----ll1 ~
~ w..w
.,
CITY OF PALO ALTO
EXPENDABLE TRUST FUM)S
COMBINING STATEMENTS OF REVENUES, EX?ENDffURES
AND CHANGES IN FUND BALANCES
(m thousands of dollars)
Yea:: 'Ended 11m 'x! 1222
Exnenda:hk IDIH EWl~b
Police lhzardous Animal
Academy MatcrWs Services
Stjbotatsbjp TraiGine Donatipns
Re.enu<s:
Interest <aIIlinBs S 1
Other revenue ill
TotalleVelllleS ..l .ll
Expenditures:
Public safety -police 2
Social ...mces
Total expenditures ..l
Excess cf revenues over expenditures ..l ...2.
FUDd bala"...., beginning of year .lZ U ~
Flmd balo"""" cod of year m ~ oW
114
-
•
.-
I
I
I
I
.. 'it
•
$2
J2
.11
8
J.
..u
..u
~
. ~ • .i .
"
J
J
.2Q
m
us
'.c::."
Total>
Years Ended
June 30.
UI
-.l
....u
J1
J§
WI
$ I
..ill
...u2
111
.lll
.J
..M
~
, ,
'.
CITY OF PALO ALTO
DEFERRED COMPENSATION PROGRAM AGF4'1CY FUND
STATEMENT OF CHANGES IN ASSEfS AND llABII.lTIES
for the year ended June 30. 1992
(m thousands of dollan)
Balances.
July 1.
1991 Additions Deductions _:
Cash with f.scal agents:
The Hartford $14.391 52.409 $795
ICMA 3.587 1.259 151
Oreal Western Savings ~ --Ll -----1ll
Tola! cash with ag"'ts ...l2.lMZ .1.lli ..lJ!l..6
Tolal assets ~ .u.m 1L2lli
I.iabilities:
Due to participants ...l2.lMZ .1.lli ~
Total liabilities 112..l!:!l UJ!l ~
116
--
BaJa""""
J ..... 30.
1992
$16.005
4,695
...lJl{Z
.1l..1§Z
UJ..Z2Z
-1L.W
~
--
I
I
I
I
CITV OF PALO ALTO
QENERAL FIXED ASSETS ACCOUNT QRQUP
, -! _ The Generu Fixed Assets Account Group in<:l~ !hose fixed assets which are used in the
perf~ of genenl govemmenla! funcrioos and t'XCludes the fixed """" of the c:ntetpri>e I ~ and int.'I1llIl service funds. Fixed assers in this account group are stated as hisIorical cost, or
1 -estimated historical cost if actua1 rus-.orical cost is 00( available.
':
...
117
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118
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CITY OF PALO ALTO
SCHEDULES OF GENERAL FIXED ASSEfS • BY SOURCE
(10 thousand., of dollan)
Ium: ~
General nxed 1ISSI!ts:
Land and improvements
Buildings and structures
Equipment
Total general fixed assets
Investment in .:enenI r",ed assets (rom;
Investment in assets, beginning of year
!nvestment in assets acquired from ClU'l'ent
activities, net
Total investment in general fixed assets
119
1m
$ 59,519
35,435
11.261
$106.215
101,731
~
iiQj.21S
1m
$ 57,062
34,394
IQ,275
$101.731
93,282
8449
S101 731
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CITY OF PAW ALTO
SCHEDULES OF GENERAL FIXED ASSETS -
BY FUNCTION AND ,\C11VITY
Admlnisttaticn:
City cieri: and COt:Ilcil
City manager
City IIIttmIey
City audito<
~
Personnel
Informatioo resources
General government
Total admlnisttaIioo
Public safety:
Police
Fire
Cooununicatioas
Animal .!erVices
Total public safely
Libraries
Pads, r=tion and ClIlture
Parking fiIcilities
Open space
Housing
Total gen<:ral fixed wets
(Ill IiIousand< of doll .... )
120
funs: 3Q 1992
Buildings
Und and and
ImproycPl¢1'ts Structures
392
245
21,158
13,080
12,S21
--llU
~
1,779
--ID
--1.lli
3,132
9,442
8,096
. "
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~~-........ --.,--.
'-
CITY OF PAW ALTO
SCIIEDULE OF CHANGES IN GENERAL
FIXED ASSETS· BY FUNCTION AND ACTIVITY
for the year ended June 30, 1992
Balanccs 1
July I, Deletions!
1991 Addjtion' Tmmfers
Administration:
City cIeri< and council S 149 S 23 $ 12
City manager 135 16 11
City attorney 144 9 12
City auditor 44 4
Firu:.!' ..... e 831 41 66
Personnel 132 26 11
Information ",sources 1,5I1 314 123
General government ..J§.m ~ -21
Total administration 19241 J11 -UQ
Public safety:
Pollee sn 69 46
Fire 2,876 579 78
Communications 641 122 51
Anima: services ~ --1
Total public safely ~ _17Q ..ill
Ubraries 4,040 52 52
Parks, recreation and culture 30,791 1,324 140
Parking facilities 21,498 1,204 122
Open space 11.782 1,039
Housing ....2.lIll
ToW geneIlil fIxed assets 5101 731 ~ 5822
122
Balanas.
June 30, 1m
S 160
140
141
40
806
147
1,702
l§.m
lU28
600
3,3n
712
-.ru
_~..lli
4.040
31.975
22,580
12.821
JJJl
}106,215 I
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CITY OF PALO ALTO
GENERAL LONG-TERM DEBT ACCOUNT GROUP
General Iong-t.erm debt is the unmatured principal of 00nds, warrants, notes or other forms of
DOIlC1lmZlt or long-term genenl obligation indebtaln ... that are nO! specific li2biliti .. of any
proprietary fund or trust fund, and DO!l=t liabilities and OIlIer Iong-term commi!IJu,nts of L'>e
governmental funds_
123
...
CITY OF PALO ALTO
GENERAL LONG-TERM DEBT ACCOUNT GROUP
BALANCE SHEETS
(rn thousands of dollars)
•
. -\ ' .
.,) .-
Jyne 30
Amotmts avzilllbk and to be pre~~~ ::iK
retirement or ;eaeralIoDC-lenD debt:
Amount available In debt seMce funds $ 5,373 $ 4,053
Amount to be provided for _t of
general long-term debt ~ ...l.4.22J
mm ~
GenenoIloag-tenn debt payable:
General obligation bonds 1,150 1,225
Certificates of particip:UiOll 7,670 5,125
Special assessment debt wilb governmenllll
comntitment 8,229 8,649
Capillll lease obligations ....M.U ~
W£?!! ~
124
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CITY OF PALO ALTO
STATISTICAL TAm FS AND arHER SCHFDID.ES rumTJDlTI'Dl
Statistical Tables and Other Schedule> are incicdod 10 provide ddailed data on the physic:al,
economic, social and political chanicteristics of Ibc reporting g"'"-'foment. They are intended to
provide the user with a broader and more complete uruIerstanding of the City and its fi:l3Dci.aI afI'am
!hM is possible from the General Purpose Financial Statements and supporting schedules included
in the FJnancial Section.
125
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CITY OF PALO ALTO
GENERAL GOVERNMENTAL REVENUES BY SOURCE
LAST TEN FISCAL YEARS
(in thousands of dollars)
(Unaudite<l)
Service
Fees
Fiscal Property Other ami
::taL ..Iim_ Tim fmniIi
1982-83 $4,056 Sll,840 $2,493
1983-84 4,493 15,100 2,805
19.84--85 4,643 17,655 3,133
1985-86 6,105 18,45() 3,148
1986-87 6,748 18,412 4,727
1987-88 6,578 22,646 4,835
1988-89 6,887 24,785 5,024
1989-90 7,512 26,145 5,615
1990-91 8,109 26,457 6,168
1991-92 8,555 27,[85 6,570
ll2ll:: Includes general, special rev"""., debt servi<;e and
capital projects funds, Dala presented for fiscal
years !9Bl to 1986 was not restated as a result of
the adoption of GASB Statement No.6, Acc(}unling
and R"fJOrri.,g for Speciol A,'=meIllS.
126
" ,
Fines,
Forfeit:;
and
Penalties
$ 659
718
789
858
935
998
1,383
1,251
1.222
1,097
I
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/
Fire Protoction
Interest and Emergency From
and Communication Other
RmIi1IL Smi9}'jj Arencics ~ Il!!i!!
$4,063 $3,290 $1,131 $1,872 $29,404
5,075 3,529 1,142 161 33,023
5,548 3,816 1,529 1,259 38,372
3,937 2,724 1,490 3,200 39,912
2,495 3,172 1,328 4,547 42,364
2,754 3,419 1,365 4,1&2 46,837
3,821 3,227 1,193 3,62& 49,!t48
4,870 3,029 1,269 4,038 53,729
5,094 3,561 1,711 3,110 55,432
5,so1 3,9Il8 :2,982 1,127 56,925
'011
127
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128
,
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lDO%
SO%
60%
40%
20%
0%
CITY OF PALO ALTO
GENERAL REVENUES BY SOURCE
(unaudited)
mProperty Taxes
EJOtber Taxes
51Fees and Permits
I:iiIlFines and Penalties
Dlnterest ",d Rental,
E3Fire and Emergency
.From Othe:r Agencies .Ot."",
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
Flsc.aJ Year Ended june 30,
129
~,.'.".L'.·'.··' r :"!C, !
tr -r . f 30_ ...........• -.---
•
CITY OF PALO ALTO
GENERAL GOVERNMENTAL EXPENDITURES BY FUNCTION
LAST TEN FISCAL YEARS
(m thousands of dolliID)
(Unaudilfld)
Fiscal Public c<>mmunity
~ Admini:rtmrlon Wmb.. Enyironmen t flIlig:
1982-aJ $ 5,071 S 5,980 $1,538 $ 7,917
1983-84 6,530 6,859 1,788 9,071
1984-85 5,229 8,732 1,923 9,879
1985-86 6,827 1I,2U 2,345 10,216
1986-87 7,279 11 ,344 2,652 11,426
1987-88 7,68J 11,384 2,553 11,347
!988-89 9,117"" 7.953 2,807 !O,954
1989-90 7,788 7,729 3,065 11,881
i990-91 7,830 $,871 2,881 12,867
1991-91 8,5[9 7,129 3,313 13,076
NOTE: Includes general, special revenue, debt service and capital project
funds. Data p=ted for flSCa! yean 1983 to 1986 was not
restated as a =utt of UIe adcption of GASH State"""'t No.6.
'""Includes litigation settlement of SI,820.
130
fin:
$ 5,853
6,524
7,045
7,954
8,676
8,562
8,339
9,067
9,762
10,027
I ------. ....
-'-:"':" .
" ~:1'-'
't,'"
Special
R.evonoe
School and
Social Site Cqilal Debt
Smiru ~ ~ ~ lliil
$ 4,667 $4,313 $2,328 $37,673
4,756 3,131 2,369 41,034
5,271 9,170 1,970 49,219
6,162 6,363 I,M5 52,927
7,559 6,679 2,728 58,343
7,541 SSS() 4,17l 2,916 56,990
10,098 2,378 6,470 2,789 60,905
lO,674 ),434 5,641 2,547 61,826
lJ,025 5,164 9,303 3,139 67,842
~ 11,816 5,469 6,609 2,165 68,723
]31
... , ~' ' .
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132
80%
60"/0
0%
CITY OF PALO ALTO
GENERAL GOVERNMENTAL EXPENDITURES
BY FUNCTION
( unaudited)
;:;~~1rn~ ~r~;i
19831984198519861987198819891990 1991 1992
Fiscal Year Ended June 30, __
III
o Debt Service
EJSpeclal Revenue and C[P
E3School Site Operations
!'2JSociaI Services
aFire
GPolice
• Conununity Environment
E:!l Public Works
.Administration
Fiscal
..rm.
1982-83
1983-84
1984-3S
1985-36
]986-87
1987-88
1988-89
19~
1990-91
1!I91-92
cny OF PALO ALTO
PROPERTY TAX RATES, LEVIES AND COll .. ECTIONS
LAST TEN FISCAL YEARS
(in thousands of dollars)
(Ur.audited)
c.m.... Delinqum1
~ Total "i'u Tax T ..
Tobl
Till
.Y!!!!L ...1=-"' CoQcgiOQl CoUectio:y eonecticm.P
$3,166,:2:21 $4,141 $3,913 $l43
3,451,251 4.~38 4.265 228
3,85s.rn 4,610 4,470 173
4.315,649 6,094 5,%5 140
4.844.J45 6,162 6,616 132
5,162,625 6,586 M37 141
5,339,581 ~,869 6.12.6 161
5,864,061 7,S09 7,356 15<5
6,501,973 &,192 1,970 139
,~ • .m 1,'11 1,371 183
Articles XIII-A of the C'.oDstitutioa of the Sta.t.e of California adopu.d by the electorate iD 1l:DC
197& pn:'CludtJI the City from. i<:lca:l property tax l~. All pnc71Il purpo6e property tucs are
levied by the C9Wlt)' aM allocated to otbe:-governmental eztities OQ & pn!Idetcrmincd formula.
$4,056
4.~93
4,643
6,105
6,748
6.57!
6,1187
7,512
8,109
8,5.55
•
I
C) Induaes coIkcti<m of the CUrTeDt levy plus delinqoeocies and pec.aJties of prior ycus.
134
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CITY OF PALO ALTO
ASSESSED VALUES vs TAX COLLECTION
(unaudited)
10,000 Tj--
j
9,000 1
1
8,000 i
1
7,000 1
1
6,000 1
~ / 5,000 1-i
4ooo1~-~' , ---
------------
::: J ~-
J
1,000 1
O+I-~-
..._e_-----.
.------...-------
• ($Millions)
T------~--;-------,-----, ----------"7---------i
• As..';e~d Value
.. Tax CoHections
1983 1984 1985 1986 1987 1988 ]989 1990 1991 1992
Fi'icaJ Year Ended June 30,
135
Fiscal
..Ym..
191!2-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1~91
151!11-92
-.
--'-----,
CITY OF PAW ALTO
ASSESSED VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
C:n thousands of dollars)
(Unauditfd)
S=JmI RQ]]
lowlI rmproyements
$ 870,418 $1,595_191
965,719 1,742,793
1,067,596 1,924,830
1,255,547 2,106,016
1,377,464 2,348,713
1,543,130 2,588,554
1,670,237 2,809,962
1,897,944 3,019,530
2,168,956 3,253,018
2,324,109 3,446,205
Pmonai
~
$ 77,«>7
78,129
68,517
63,990
69,470
120,321
142,484
134,389
107,494
275,237
Hl!I.!:: Co, Beginning in fiscal year 1988-89, Chapter 921 ~f ~"e
Stllues of 1987 requires the establishment of a single
county-wide tal rate area for t.lte assignment of the
assessed Vl!Iue of certain types of :<tate-assessed utility
property and sets forth formulas for the cIelermination of
county-wi~ U:x rates for this particular type of property_
Source: County of Santa Clara Asscs>or'. Office
136
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--,
/
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-, r-
~
u=
ij=
'J
'1
" Less
Exemptions Total
"
~ Publi;:: Unsecured Net of AuessOO Ii !.!li!i!iQ Bol! State-Aid Vallie ii
1 $ 99,152 $ 724,902 S 201,102 $3,166,228
110,582 775,745 215,717 3,457,251
1I9,432 902,624 227,122 3,855,877
128,316 1,044,827 443,041 4,511,650
130,299 1,198,144 279,945 4,844,145
130,952 1,128,227 348,559 5,162,625
7,295"' 1,145,899 436,2% 5,339,581
8,138 1,248,028 443,968 5,864,061
10,139 1,334,622 422,256 6,501,973
13,666 1,340,1181 449,869 6,949,429
"-
137
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138
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CITY OF PALO ALTO
ASSESSED VALUE OF TAXABLE PROPERTY
(unaudited)
7,000 r-----
1
6,000 -+----
l ~::r~-
.'
1
3,000 ~~C?"'./ --
2,000 1 -*-_ ' -+-__ +-1
I,OOOT~-+--+--'--r--~+--' 1
o~ 9 9 ~ ~ '?--~ Q $ ...
-SECURED
+VNSECURED
<:> UTIlITIES
1983 1984 1985 1986 1987 1988 1989 1990 1991 199i.
Fiscal 'fear Ended June 30.
139
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•
CITY OF PALO ALTO
PROPERTY TA. .... RATES -All OVERLAPPING GOVERNMENTS
(pER $100 OF ASSESSED VALUE)
LAST TEN FISCAL YEARS
(Unaudited)
County of ..... Scl>ool Speci&l P.utm"
--'J!rL ~ I1i!I!is:!.I Il!!<I District
$1.047 S.032 $.003 51.082 $.163
1983--34 1.045 .029 .003 l.on .131
1984-85 1.044 .022 .eX>3 1.069 .104
t9!S-86 1.036 .{In .003 1.056 .042
1986-l:7 t.024 ,017 .001 1.042
19S7·go 1.039 .016 .002 1.057
198~ 1.038 .011 .000 1.049
1989-90 1.031 .008 .000 1.046
1991>-91 1.Q39 .004 .000 1.043
U9t-U l..O3' .002 _1lCIe 1.041
To.: I"Iie6 8Wtd ~ the rates -W1icab1e to !be tu: area bavine the !tigbest assessed
val~ of all areas within !he Clty o~ Palo Alw. ilA!c! are bfosed 011 $100 .I.SSCS&t'.d
valuation.
140
,
i ......
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Fiscal
..Yw..
19&2-83
1983-84
1984-85
1985-86
1986-87
1-1987-88
1988-89
198~90
1990-91
1991-92
.-
~:il)
::t
....
/
CITY OF PALO ALTO
SPECW_ ASSESSMENT COLLECTIONS
LAST TEN FISCAL YEARS
Current
A=ment
Il'u~
$ 423
401
343
1,112
984
1,017
1,127
989
1,016
9!14
(UI Ihousa.'lds of dollars)
(Unaudited)
C=t
Assessment
Cllllected
$ 393
384
323
1,087
953
981
1,086
954
997
984
Delinquent
and
Penalties
CQllc&:~
$ 7
26
8
:lO
30
35
31
36
23
14
Total en
~ll~QDS:
$ 400
410
331
1,107
983
I,O!6
1,117
990
1,0:l0
998
Includes. collections of the CLITTe:nt year levy plus delinquencies and penalties:
of prior year.
HI
Fiscal
...Ya.L
1982-83
1983-84
1984-83
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
1991-92
. f. '
CITY OF PALO ALTO
RATIO OF GENERAL BONDED DEBT TO ASSESSED VALUE
AND NET BONDED DEBT PER CAPITA
LAST TE.'! FlS CAL YEARS
(Ill thousa."ld, of doJilan)
(Unaudited)
Percent of
Bonded Debt
Assessed Ilonded to
Zlll2y!.ili!!ll Vil~!:; ..Ill:!lL0l A:i~nI:!J Vill~t
55,900 53,166,228 $19,094 .603'11
56,100 3,457,251 17,160 .496
56,200 3,855,877 22,079 573
56,800 4,515,649 21,m .482
56,600 4,844,145 21,869 .451
56,900 5,162,625 20,671 .400
5f,950 5,339,581 19,616 .367
57,400 5,864,061 20,334 .347
56,000 6,501,973 19,046 .293
56,330 6,949,429 20,605 .2%
Bonded
Debt Per
Ca~i!i!
$.34
.31
.39
.38
.39
.36
.34
.35
.34
.37
"' General Bonded Debt includes; Genernl Obligation bonds, Special Assessment Debt, and
Capital Lease ObligatiOlls. It excludes tile I<ase purchase of optical imaging equipment in !he
amoun£ of $65,
~42
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CITY OF PAW ALTO
COMPUTATION OF LEGAL DEBT MARGIN
IU'le 30, 1992
(u: thousands of dollar5)
(Unaudited)
1991-92 Assessed value Stj 949 429
Debl limit -15" of assessed value
AlDO'mt of debt applicable to debt limit:
General obligatiOfl bonds
Capitalleose obligations
SpeciJIl assessment debt with governmental
commitment
Total
Less amount avallabI. in debt ",mce funds
Total amo • ..,t of debt applicable 10
debt limit
$ 1,ISO
13,168
--R.m
22,547")
1,042,414
17 174
sum 240
~; " Capital lease oblig.tions include lease purc!we obligations of inlernal
service funds., but exclude debt recorded in the Enterprise Funds because
such debt i> not subj",,' to the legal debt margin.
143
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crrv OF PALO ALTO
SCHEDULE OF DIRECT AND OVERLAPPING BONDED DEBT
Iune 30, 1992
1991-92 Assessed VaJuatign
(m thousand., of dolJan)
(ll naJdita!)
56,949,429
Direct and Overlapping Bonded Debt
Santa Clara County &iJding Authorities
Santa Cl2ni County FC &< WCD, Zone W-1
Foothill-I)eAnza Community CoUege District
Palo Alto Unifi<d School District
Otber Schoo! Districts and School Authorities
City of Palo Alto GenenU Fund Obligations
City of Palo Alto Special Assessment Bonds
Midpeninsula Regio!laJ ParI< District
Santa Clara Valley Water District Certificat"
of Participation
Other Special Districts
Total Gross Direct and Overlapping
Bonded Deb!
Less: E Camino Hospital Authority
(100" Self-Supporting)
Total Net Direct and Overlapping Bonded Debt
Ratios to Assessed Valuation:
Gross Direct Debt ($14,154)
ToLa! Gross Debt
Total Nel Debt
% Appiicab1e
7.489
0.486
21.S94
90.348
Various
100.000
100.(0)
13.294
7.489
Various
0.20%
0.90%
0.90%
Nl!l!:: "'Includes $3,556 Terman Schoo! Capital Lease Obligation and $!, n8
Equipment Lease.
Source: California Municipal Statistics, Inc.
144
Iune 30, 1992
~
524,062
112
6,535
253
317
14,154"'
8,229
6,169
2,835
--.J.
62,673
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..lAt.
19S2·83
19~
1984--85
1985-86
1986C87
1987-88
1988-89
1989-90
1990-91
11191·92
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CITY OF PAW ALTO
RATIO C'F ANNUAL DEBT SERVICE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPF1'<"DITURES
LAST TEN FISCAL YEARS
(Ill thousands of dollars)
(Unaudited)
Interest Ratio of Debt
and Total Total Service to
Other Debt Ge:leIaI Total GelIeraI
~Dcina1 CCiifi= ~ ;Ernt!n!ftures(1) URCDliliwrcs
$ 586 $1,296 $1,882 $32,913 $S.72
I,m 1,243 2,316 37,844 6.12
645 1,325 1,970 40,049 4.92
565 1,280 1,845 46,564 3.%
940 1,147 2,087 55,411 3.77
1,198 1,718 :t,91fi 53,575 5.44
1,113 1,676 2,789 55,566 5.02
1,112 1,435 2,547 57,433 4.43
1,289 1,8S0 3,139 59,519 S.27
1,ISI 1,614 2,765 64,073 4.02
N!lI;: 0) InclU<les general, speci<J revenue and debt service futld.!: but excludes capital
projects.
Q) Dala ~ted for fuca! yezrs 1982 to 1986 was not n:stated In inolude sneciaI
assessments as • result of the adoption of GASB Statement No.6. •
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FUcoI
.hi<.
1982-83
19113-84
1'l8H5
1985--S6
1986-37
1987-82
I .......
1989-90
199<H>1
IJ!1I·!n
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CITY OF PALO ALTO
REVENUE BOND COVERAGE
WATER, ELECI'RlC, GAS, WASTEWATER AND STORM DRAINAGE FUNDS
LAST TEN FISCAL YEARS
(in thOUWlds of dolliln)
(Unat!dited)
Net Jle'I!ecn»
Di.._
A_
GroG o,....w., foe Dol>< ~~!i!: Reau.iJClIW::U~
IIm!m!t 'Enwond l s.m.. ~ Io!mo! Il!!!! ~
S S6.6S7 $40,297 $16,_ $370 $ II S 301 542.94
69,660 SO,58l 19,017 0'" 208 208 91.7]
82,607 58,690 23,917 170 351 521 45.90
",996 66,920 23,076 210 657 867 26.62
",803 68,919 27,884 220 856 1,076 25.91
97,004 63,382 33.702 334 1,044 1.378 14,016
97,790 60,344 3i.-146 S34 l,O!1 1,5<5 24.24
104,948 70,090 34,058 S6S 035 1.soo 23,24
109,115 70.302 38,813 OSO 922 I,m 20.73
w,e S,ul "'."" '" II2t I,5U 32.'18
~ °1aclude& 6epnci.a..iion and axnortizatiOIl ~.
~o hood priDcipai wu paid ill fiIaJ 1983-&4 due 10 deftal8llCe tJf 1979 BODdI wjlh 1983 R.efuodm, --.
147
S!!!nw.: mState Department of Finan<>:
"'Palo Alto Unifie<l School District
"'State Employment Development Office
148
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Ponuiatfoom
1,344,700
1,363,300
1,376,900
1,403,100
1,407,900
1,431,600
1,440,900
1,463,500
1,513,100
1,531,700
City
Population
as a % of
County
4.16
4.12
4.08
4.05
4.02
3.97
~.95
3.92
3,70
3.68
School Unemployment
PQl!llJatjon'" Ra~_'"
Not
8,583 Avaihble
8,290
8,145 3.6%
7,914 3.4%
7,835 2.8%
7,683 2.6\IE
7,4n 2.6%
7,443 2.3%
7,496 3.9%
7,756 4.!CJI>
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N~tber
FUa1 of .. .X= fm!!i!l Y!l!!I!illD
1981-83'" 123 $36."99
1983·84" 113 79.900
1984-85 75 S.9l1
1985-B6 32 5,14;
1~ I. 2.229
1987-88 10 1,125
19Si-S9 , 182
H189-90 1 249
1990-91 6 <70
ml·~ 11 II'
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CITY OF PALO ALTO
CONSTRUCTION ACTlVlTY
LAS!' TEN FISCAL YEARS
(m !llOUsands of doIIars)
(Unaudittd)
.'
Cmnmr:n:i!.l t. Offi:?e ""'idg!!i!I
Nwubor N_
of of
l!m!Iil> YI19!i2o IEoilo ~
296 $58.908 624 $22,957
U.8 53.600 7.7 28,922
255 54,sse m 31.461
2'" 3M7S 910 29,560
no 61.099 1,108 39,205
311 42,062 1,100 40,870
316 59.835 1,130 47,334
111 66.313 1,195 43,37'
342 7~,ll98 1,088 41.&61
355 u,aa UI7 38,101
l~t
AD O!bea
Number
of
~ ~
131 SM66
82 8.961
197 15.541
135 ~.509
8l 11,011
81 13,033
65 5.192
53 3,414
7G 9,93'5
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Data Processing
FipanejaJ I ASS
Employee Blanket
Coroprcitensivc Public
Liability
Umbrella Excess
Swiat J ,;ahility
Volunteers Acci4ent
Special Events
Employee Benell t
Tnvel Accident
Emp!gycc Hea1lh Plan
Workm~ Compensation
ExCX;\5 Wor1rers'
Compensatioo
CITY OF PAW ALTO
INSURANCE COVERAGE
Iune 30, 1992
(U ""udite<!)
~l&t {or comment}
All real &. personal property -($10,000 dedu',:rlble)
All real &. personal property:
($25,000 deductible -eocl! transformer)
(510,000 deducllblc -all other objects)
All risk -($1,000 deductible)
~. -, .
Po!ition bond -faithful perfOl1l13llCe per loss -($5,000 deducnbJe)
City is self-insured for firsI $1,000,000 oF liability
City is a member of an insurance pool participating with
a number of other California citia.
Each~
Medical -Each Person ($25 d<ducllble)
Bodily Injury ($250 deductible)
Indemni ty, !wed en saIar)'
Each person 100" in excess of SI25,OOO for
all 0CC1IIle'!CeS up 10 • lifetime limit of $875,000
per penon. City is self-inwrell foc first $125,000
of liability
City js self-insured for first S I ,000,000 of liability
Excess Workers' o,ll'pensation
Employers Liability
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SlSS,46 I ,453
SIO,OOO,OOO per accictent
$3,150,000
$1,000,000
$9,OCkJ,OOO
$5,000
S5,000
$1,000,000 per occurmu:e
$1,soo,000 per accident
5875,000 C.ifeti:ne limit
oac:h penon)
$10,000,000
$2,000,000
C9ITlI!i°Y
ChubblFedera!
ChubblPacilic Indemnity
ChubblFedetal
Hartford Acciw.nt & lndernru!y
AccelGroup
National Anu:rican Life Insurance Co.
ScousdaIe In.llrance
Life Insurance Co. of No. America
Fortis Benefits Insurance
National Union Fire Insurance
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Expimtion
Date
07101192
07101192
07101192
07101192
07101192
01101193
03114193
06101193
01/01193
07101192
Lelmd. Staafotd. lr. UIlivcn:i.ty
S I Palo Alto, IDe.
HewldW'oobrd Compa>y
Moytti hN_. hoo.
MSD AcqWitiooIIDc.
Tocals
CITY OF PALO ALTO
PRINCIPAL TAXPAYERS
June 30, 1992
(in tllousands of dol4n)
(Un.audited)
Type or 'mi"M!
Uaivenity urd mc:il1vy
"-"h ODd Developm<at
Comput.rn &ad Ecdronia
G......u1nduRrW
Office. 8mb aDd CliniC8
0""-, s..w ODd CWriao
Offices, B.mis and C'lit.1u
~ "El<ctn>rua
0_ s..w ODd CWriao
Offi<a, s..w ODd CWriao
~: Center for UrbIn AlWyrris County of Santa Clan
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Valualiop
$1,232,902
J23,581
S6.963
47.S42
43,405
)O,28S
19,653
18,6&9
14,66S
---1.l.lli
11.6011473
.ofToca!
A--'
~
11.i4
1.78
0.82
0.68
0.62
0."
0.28
0.27
0.21
~
23.04
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CITY OF PALO ALTO
MISCELLANEOUS STA nsncAL INFORMA nON
June 30, 1992
DiJcovered
Incorporated
IncoIpo<a:cd as charter city
Govenunc"t
Populalion
Land Area
City Maintained Trees
Police Pro<octiO!l
Fire PrnID::tion
Number of Housing Units
Commercial and IndustrW Space
Municipal Utility Plans:
Water
Wastewater
Electric
(Unaudited)
1769
April 16, 1894
Ju1y 1, 1909
Courk."iJ -City M.nager Form
56,330
15,98 Square Mlks
41,000
1 Statioo
167 RquIar Employees
27 Police Patrol Vehid""
7 Stations
117 RquIar Employees
24 Fire Apparatus
1,500 Fire Hydrants
141 Acres -Downtown Parks
3,920 Acres -Open Space
34 Parks
1 Golf C<lurse
4S Tenni. Courts
I Athletic Cen<cr
3 Community Centers
2 TIteatres
3 Clubhouses
4 Arts and Craft Centers
15,263 Units
24,4 Million SqWlre Feel
4,7 Million CCF S<>ld, 19,046 AccO!mts,
22Q Miles of Main.
7,22 3 MiWon Gallons Processed,
21,264 Accounts
215 Miles of Sanitary Sewer Lines
1,054 Million KWH Sold, 27,246 A<counts
235 Pol. Miles, 183 Trench Miles
35 Million Therms Sola, 23,123 Accounts,
177 Miles of Gas Mains
ISS
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cITY OF l'ALO ALTO --
SINGLE AlJDff REl'ORTS
fOT the year ended June 30. 1992
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REPORT OF INDEPENDE."IT ACCOVNTA."ITS ON TIlE
INTERNAL CONTROL !.TRUCTURE OF TIlE CITY OF PALO ALTO
Tne Honorable Mayor ."d City Council
GIJI of Palo Alto
Palo Alto, California
We have ..,dited the gCleta! purpose financial statements of the City of Palo Alto, California (the
Gty) as of and for the year ended June 30, 1992, and have issued our report thereon datal
November 6, 1992. As explained in 1he third pangraph of our report, we have 'DeeI\ unable '"
satisfy ounelve.s concerning • Stlbstantial portioo of 1he roprted COS! of proporty, plant and
equipment in the ==u Fixe<! Assets A=unt Group because detailed records and documentation
of historical and estimated historical costs .,., IIO! .".ilahle.
We conducted our at:dit in =<lara willl generally accepted auCiting standards, ex"'P' as
explaine<! in the third pangraph of our nport, and ~ Auditing Srarr4u.nis, issued by 1he
Comptroller Genetal of 1he United Stales, Those standards require that "'-' plan and perform tile
audit '" obtain "'"-"""Ible assurance about whe1her the ,<floral purpose financial staU:ments are free
of material misstatemenL
In planning and petforming our audit of the general purpose financial Slatements of 1he City for the
y= ende<! June 30, 1992, we considen<I its internal control SInIcture in onler to determine our
auditing procedures for the pu1JXl<" of oxpres..<ing our opinion on the ,,,,,eta! pUIJ'O>< fulll"cial
statements md not to provide assurance on the internal control structure,
The lI'.2l1Ogement of the Gty is responSlble for establishing and mai.~Wning an internal con!rol
structure. In fulfilling this responsibility, estimates and judgments by manage,,"'lt are requi=l to
....... the <xpected bendits and ,.lated costs of internal centrol structure policies and procedures,
The objectives of an illtemal c.or.ttol structure are 10 provide management with reasonable, but nO{
absolute, ossu"",,,,, that U5et$ are safeguarde<! against loss from unauthorized use or disposition,
and that transactions .I.J.'"e executed in ac.cordance witt. lJ".anagement's authoriz.a.tion and rec.orded
properly to permit the preparatioo of general pu1JXl<" financial statements in =rclanu ""til
geneta!ly """"Pted accounting principles. Because of inherent limitations in any internal control
structure, erron or inegularities lTI.2y nevertheless occur and not be detected. Also, projection of
any e>'3luation of the structure to future periods is SUbject 10 the ri51 that procodures may h=>m.
inadequate because of changes in ronditions or that the effectiveness of the design and opo:ration of
policies and prooedures may delelior.llC,
159
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For II>< pwpooe of IhiJ ~, .... hav. classified !he significant intmlal control structu.." policies
ond proc:edures in the following ~ories: tr.asury, ,evan;., purclla.=, payroll ond extmlal
tin3ncial IOpOrting.
Fm III of the internal control Slruoture catqories llited above, we obtained on undtrttanding of the
design of relevant policies ond procedures and whether !hey have been placed in operation, and we
lSleSSed CCI1tro1 risk.
Our coosi<.'eralion of the internal cootrol stnICture would DOl n=rily disclose III = ;n !he
illlemal amtrol sIn1cture that might be maIai.al w~ luuler otL..cards established by the
American lns:illlte of Certified Public Acoountants. A mater'.al weal:ness is a condition in whicl!
the dosign or oporation of one or more of the internal control """""'" elemmts does not reduce 10
• relatively low kveI !he risk tm!! em>rs '" i=gularities in amounts that would be material in
relation 10 the general l"~ financial SIalements being audited may DCCtL" and not be ~
within • timely period by employees in the normal course of performing their assigned functions.
We noted no maIten involving the internal control structure ond its openIion that we ronsicler 10
be material weaJmess.es as defined abov •.
H"",""",,, .... """'" c:erwn matters involving the internal OOIItrol structt:re ond its operation that ....
have reported 10 management of the City in • JepaIale leiter dated November 6, 1992.
This Jq>Ort is intended fcor the informalion of !he City Council, mana;:en=t, its oogni2ant agency,
ond oIher (eden! a,encies rranting fund, 10 the City. However, IhiJ I<pOft is I matter of public
<ecord ond its distribution is not l,;n-.ited.
Menlo Pork, California
November 6, 1992
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REPORT OF ISDEJ'ENDENT ACCOUNTANTS
ON THE CITY'S COMPLIA.1IiCE WITH LAWS,
REGULATIONS, CONTRACTS AND G.IlANTS
The Hooorablc Mayor and City Council
City of Palo Alto
Palo Alto, CaliforDia
• > ---._---. ~--........ ----.
We ba>e 8lIdited the Km=l pmpose financioI =mer.rs of the City of Palo Alto, California (tile
City) u of aDd for the year coded ]unc 30, 1992, and haw i&sued our "'JIOft ~ dak.I
November 6, 1992. ;.. expIaiDed in the third paragraph of our ~ WI: have been unable to
saIisfy ouncIves =.ceming l lUl>5tu!tiaI portion of the rcpor1cd cost of property, plant and
eq>Jipment in tile GeI!cral FiMd A.ssets Account Group bcc:ausc cIcIaiIod m»rd! IIld documcntatioo
of bisIoric::al and "';mltrt! hi.stori<:a! costs arc not av.ailablc.
We coodudzll our audit ill oa:onIancc willi genet3lly ~ auditing SWldatds, e.copt as
aplainod in !be thin! pIUOg1lIpb of OUT ropon, aM O<wenunou AJJdiling SUmiimrls, issued by the
C'.oDJp!ro!Iet GcDcral of the United States. Those ~ n:quiJe that we plan and perform tile
audit to obIain reaaoaaI>le USU!l!ll<% about wbethcr tile fener.II p!lJpOtC financial IIIalemCnts are free
of material milSb'ement.
CnmpIlance with laws, rcgulaIions, 00II_ and gr;mrs "Pl'Iicablc Ie the City is the reoponsibilily
of Ill: City', management. ;.. port of oblaining R2SO<Iiblc wurance about wbetIler the Km=l
pIDJlOSe financial ~ ore frec of mat<:rial milSWement, .... pcdormed tats c( tile City',
oomplian<:c with =tail! pnMsions of laws, rq;uIatlnns, contra.."Is and pants. However, the
objc:Qvc of our audit of the general puIpOse financial statements was not to provide an opinion OIl
overaIJ oompIiIIl~ with IIIcb provisions. A=1dingly, ",e do not express such ... opinion.
The r=lts of our _ indicate !hat, with JeSpCct Ie the items t$.od, the City oompIiod, in all
material respects, witllthe provisions refemd Ie in the pMC<ding paragraph. With respect 10 items
not 1CSIcd, IIOIhin£ came Ie ocr attennon that caused W 10 bcIieve that the City bad not oompIiod,
in all maICri.aI JeSPCCIs, wUh !bose provisiOll1.
This report ii intended far tile information of til. City Council, management, irs oogninmt agency,
and 0Ihcr (odI;ral agencies granting funds to til. Ci ty. However, this report is • matter of public
=ord and irs distribuliOll is not limited.
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REPORT OF INDEPENDENT ACCOUNTA. ... 'TS
ON SUPPLEMl-"'ITARY SCHEDULE OF FEDERAL
FlNA.l\{ClAL ASSISTANCE
The HonorBble Mayor and City Council
City of PlIo Alto
Pale Alto, California
w. have audited !be JODODI pwpose financial Jlal.emenl> of !be City of Palo Alto, California (the
City), as of and for !be 'JC"Z Glded Iune 30, 1992, and have issued our report Ibereon dated
November 6, 1992. As explained in !be Ihird poragraph of our report, we have "-' unable to
IlIisfy oune/ves coocernin&: a oubSlanIial porUcm of ibe ~ cost of propeny, plant and
equipment in !be Geoenl Fixed Assets Acx-ount GroIIp becau!e detailed =oro. and documentation
of hiJtori<:aI and ostjm""" historicIl oosts are IlOl avaiJlIl>le. Theoe genenI purpwe financiaJ
........... '3 are !be mporuibility of the City', ~t. Our ~ility i.s to expre$S ao
opilIioa OIl these cencra1 PI!lpC>& financi.aI _'3 baY.d OIl our &lIdit.
W. conducted ow audit in aa:ordanoe with generally IIC<Cpted auditing IWIdanIs. acq>t &5
expWned in !be third ~ of our report, and GmI'lll1l£nl AJMJiJing SltutdtudJ. issued by !be
Com;>Uo!Ier Geoenl of !be United StaI:S. Those IIandards require tbal we plan and perfonn the
audit to obtain :eosonabl. ~ about wbeIh:r the geoeraI purpose financial statemeIllS are free
of material miataIemalt. A11 audit ineIudcs ODIIlining, 011 a _ basis, evidenoe IIIppDrting !be
IlIIKlWlts and diJCIosureo in !be ,onctaI purpose IinanciaI starem<ftts. An audit abo includes
.......u.g the IIC:<lOIIIItinr priDciple5 used and significant ostimales made by manag=1, &5 well &5
e>lIlualinj: !be ovenll fina:>ciaI stale.-nent pr=tation, Wo beIitve tbal our audit provides •
=sonable basis for our opinion.
0Jr audit was made for the pwpose of forming a.. opinion DO the g<nero] pwpose financial
-"'ts, of the City, tam. &s • whole. The a.xompanyiDg Schedule of Federal Financial
A";"""<>' for the yar 0Ddcd Jur.e 30, 1992 i.s pr=ted for pu:po.se.s of additional anaIysiI and i.s
not • required part of the general purpose IinancW SIalmIents. The information in thal schedule
has "-' IUbjeaal to !be auditing procedures appli<d in the audit of the generaI purpose IinancW
statements and, in our opinioo. i.s fairly preoenl«l in all material =peets in rtla!ion lc \he general
purpose fuwtcial 5IBJemeZIts takerl as a wholo.
Menlo Park. California
November 6, 1992
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CITY OF PAW ALTO
SUPPLEMENTARY SCHEDULE OF FEDER.4.L FINA1',ClAL ASS!STANCE
for the year ended June 30, 1992
Catalog of
Fl"deral Total
Dom<stic PIOgram
FedeI31 Gtantorl Assi~l1.ce Assistance
Pmvam Titlt NYmber Rr&eiyed. Expgldj lures
Ml\jor program:
U.S. Department of Housin& and
Urban Develop.""! Community
Development BI<>clc Grant 14.218 $728,517 $1,392,827
Other fedenl programs:
Ff<lera1 IDghway Assistance
(Passed through the City of
San Jose) 20.205 19327Q
Total (<den.! financial assistance 19 •17P ~! ~92,§27
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REPORT OF INDEPENDENT ACCOUNTANTS
ON THE INTERI"AL CONTROL srRUCTURE USED TO
ADMINISTER FEDERAL FINANCIAL ASSISTANCE PROGRAMS
The Hononble Mayor and City Ccuncil
City of Palo Alto
Palo Alto, California
We have audi:..! !be general putpOSe financial .w.:ments of !be City of Palo Alto, California (the
City), as of and for the year ended June 30, 1992, and have issued 01lr rep<m th= dated
November 6, 1992. As explained in the thin! ~h of our report, we have been unable to
Atisfy ourselves =mg a subSllmtiaJ portion of the "'POrted cost of prope:ty, plant and
equipment in the Gen=J Fixed Assets A<XCUllt Group becaus= deWled m:ords and docwnenttlion
of historical and esti!IIated bistoricaI costs are not 2V3iIabll:. We have olso audited !be City'.
oompliance w:ith requirements applk:able to major {eden! financial assistance progmn.s and have
issued our ~ thereon dated November 6, 1992.
We conducted our audits in acoordance w:ith generally ac.:epted auditing Slanclanl5, except ..
explained in the thin! paragmph of our report; Go..I'1UIIOIt Auditing SJandartb, issued by the
CcmpttOlIer General of the United States; and Office of Management and Budget CirculJIr A-128,
Audits 0/ SJau and Local Govmunenls. ThOle standards and OMB CirnIIar A-128 mjuire that we
plan and perform the audit to obtain reasonable assurance about wbether the general purpose
finandal statements are free of material rnisstaLemcnt and aoout whether the City oompHed' \\'ith laWs.
and regulations, oollC<Jmplial1ce with which would be material to • major federal financial assistance
progmn.
In planning and perlorming our audits for tile year ended June 30, 1992, we ccnu;dered the internal
control structure in order to determine our auditing proced= for tile pwpose of •• pressing our
opinion. on tile general purpose financial statements of the City and on Ille City" compliance with
reqLlirements applicable to major programs, 2nd to report on the internal contro! structure in
accordance w:ith OMS Circular A-128. This:<port addresses oor consideration ofin\emal control
structure policies and procedures relevant 10 compliance witll requirements applicable 10 federal
financial assistance progrun.s. W. have addressed internal ""nttol structure pclicies and procedures
relevant to oar audi! of the general purpose financial statements in • separate report dated
November 6, 1992.
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The ~ement <>f !he Clry is respor,sible f<>< es1ablishing and rnaintai'lin~ an internol C<mtrol
~. In fulfllli11g this respoosibili<y, estimateS and jutlgmenll by management are roquirod to
assess !he expected benefit; and relatOO CO'lI of internal control structure r obcies and proc<du=.
'!'be objectives of an intemal control strucIU!e are to provide management with reasor.able, but not
ab.so1ute, &S5III'IDOO 1ha! ..-an: safeguarded against loss from unautllOrized use or disposition,
dial transactions.,., ex,cuted in accordAnce with management'. authorization."d r=rded properly
lD perntil lb. prepamioo of general purpose financial statements in ~ with ~enerally
~ accounrlr.g principles, and ~';at fedml financial as.sistance programs are managed in
compliance with applicable law. and regulations. Because c;f inherent limitations in any internal
control structure, errors, irregularities, or instances of f\Oncompliano: may neve:rtheiess ocrur and
not be deIected. .'U50, projectioo of any evaluation of the structure to future periods is subject to
the risk dial pro;edu= may becom< iIwloquate boca",., of changes in rondition, or that !he
effectiventS5 of the lksign and operation of policies and p1OCedu. .... may deteriorate.
For tile purpose of this report, w. have classified the significant internal control ".metu", policies
and procedumi used in administerine federal financial as.sistance programs in'" the following
categories;
AttOUZJtinj: applications: billingS, receivables, cash r=ipll, pllfchasing and receiving, cash
disbunemenll, payroll., general !<dger and externol financiaI
reporting.
General ""lulremer.ts: political activity, O.vis-Baoon Act, civil rights, cash mar.asement,
relocation assistan~ and n:aI propetty ",",,",.menl, federal
financial reports, allowable costs/cos: principles, drug·free
workplace and administratiVe" !'eQ.u!rements.
Other:
types of services, eligibility, matcbing, reporting, cost allocation,
special ""Iuiremenll, as applicable, and monitoring :rubrecipients.
claims for advances and reimbursements, amounts claimed or used
for matching.
For all of the internol structure categories listed .oove, we obtained an understanding of :he d .. ign
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of relevant polities and procedures and determined whether t/ley Mve been placed in operation, and I
we assessed control risk.
Durir.g the year ended June 30, 1992, t/le City .. pended 100 percent of its total federal financial I
amstance under its one major federal financial assistancc program.
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We performed tests of controls, as required by OMB Circular A-12~, to evaluate the effectiven:Sl
of the design and opemion of internal contro! structure policies and proccdlL"tS that we considered
relevant to pre'o'CSlting or dIotccting material I!OOcompliance with specific tequiretnalts. general
requirements. and requirements gOYcnUng claims for advances and reimbursements and amounts
claimed or used for matcltine that arc applicahlo to oath of the major federal financial assistana:
programs of the City whiell ..... idaltified in the acrornpanying Schedule of Federal FinanciJ!.l
AJsiS!2lloe. Our procedures w= 1= in scope than would be necessary to =c!er an opinion on
these internal cootJol structure policies and procedures. Acoordingly, we do not """"'" such an
o¢nioo.
Our consideration of the int=1aJ control structure policies and prDC<du= used in administering
federal financial assistance would no! necessarily disclose all matters in the internal control structure
that might constitute material wealcnesses under SIan<Wd. osublished by the American lnstirute of
Certified Public Accountants. A material woaJrn= is • ccn!!ition in whiell the design or operation
of one "'" more oi ti".e intemal conttol structure clements does not reduce to a relatively low level
the risk that noncompliance with Jaws and regulati"". that would be material to a federal financial
assistance progrun may occur and nO! be det<ctOO within a timely period by employees in the
nonnal course of performing their assigned functions. We ""led no matters involving the iatema1
control = and its operations that 'Ie consider to be maletial weakneSles as defined above.
This report is intellded for the information of the Dty Council, management, the City', cognizant
agr:ncy, and other federal agencies granting fund. to the City. However, this report is • matter of
public ream! and its distribution is not lintited.
Menlo Park, california
November 6, 1992
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i Coopers
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~ ce<11'..o ~~,c .ecoo ... ~r<J
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REPORT OF INDD'ENDENT ACCOUNT ANTS
ON THE CIn"S COMPUANCE WITH SPECIFIC
REQUIREMENTS Al'I'LIC.ULE ro MAJOR fEDERAL
FINANCIAL ASSISTANCE PKOGllAMS
The H~le Mayor and City Council
City of Palo Alto
Palo AIm, California
w. have audi!e<lthe g.".ru pmpose financial statements of \he City "r Pal" Alto, California (the
City) as of and for the year ended June 30, 1992, and have issued our report thereoc c!aIod
N",=ber 6, 1992. As explained in the third ~b of our report, we have been unable to
satisfy ouneIves coocerning • substantial portion of the reported coot of property, pla.,: and
equipment in tile General Fixed Assets Account Group because ~tailed ,<iOOTdS and docwnentatioo
of historical and esIimaIed historical costs are DOl available.
We. have also audilo:! the City's oompliaru:e with the requirements governing types of services
allow«! or UDaIlowed; eligibility; =bing, level "f effort ur eannarking; reponing; and SJ'C"'iaI
1tSts and provisiODi 1ll:t1 are app1icable lO its major feder.U flnanciallSSi3l2nce program, which is
identified in !he accompanying schedule of federal financial assistance for the year ended June 30,
1992. The management of the City is teSjIOIW"ble for the City's compliance ",th those
requitemcnts. Our teSjIOIW"bility is to express an opinion "" ()Jmplianc:e with those '"'f.llrements
based CI!l our ..,dit.
We condGCled out audit in =rdan<:e with genenlly a=pted auditing standards, except as
cxFlained in the 1hi!d paragraph of om "'POft; Go","""",, AJufuing Swndards, issued by the
Comptroller General of the United States; ."d OMB Circular A-l2S, Audits of State and L:xoJ
"" c;o.,.mmenn. Those Slandards and OMB CirculaI A-l28 require!llal ",epllm and petfonn \he audit
to obtain reasonable assurance about whether mattrialllO<lcompliance with the ~menu referred
to above occurred. An audit includes examining, on a test basis, evidence about the City's
OOIIIpl.iance with those requirements. We ~..Iieve that OUT aDd;t provi(\es a rearonabl. basis for our
opinion.
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The TCSUlts of our audit procedures discloS«l immaterial instances of noncompliance with the
requirements referred I<> above, which an descn"bed in the accompanyin& Schedule of Findings and
Questioned Costs. W. considered these instlnces of noncompliance in f<=ling our opbion on
compliance, which is expressed in the following pa.-agtaph,
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In OW" opinion, !be City complied, in all materi&l ~, with !he requirem ... ts governing Iypes
of JOrVi<:a aIJowoj or unalIowcd~ elig;ibility~ mat.:hing, level of .ffort r;r <armaTkinZ~ reponing~ and
special -. and prIl'Yisions that are IIpplkable to its major federal financial asnSlll.'lCe program for
!be l""" mded 1une 30, !992.
This report is inteudcd for Ihe informalion of !be City Council, management. Ihe City'. cognlzan[
ogeocy, and OIher fcdenII ",,,,,des granting funds to !he City. However, this report i •• matter of
public ream! and ito distn'bution is not limited.
Menlo Pad, Cllifomi.a
November 6, 1992
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REPORt OF INDEPENDENt ACCOUNTANTS ON THE
CITY OF PALO ALtO's COMPLlANCE ~TIH GEl'ooLRAL REQUlREMEJIo'TS
The Honorable Mayor and City CounciJ
City of Palo Alto
Palo Alto, California
We have audited the general pwpose financial Slat.eJn<:nts of the Cit)· of Palo Alto, California (the
City) as of and for the year ended 1une 30, 1992, and have issIJed our repon thaeon d.au:d
November 6, 1992. As cxpIained in the Ihird ~ of our report, we have been unabl<: to
JIlisfy ouneIv.. am=ning a subSlantial portion of the reponed con of property, plant and
equipmclt in the Gorler.Il FIXed Assets Account Group because ~ed =mds and documentation
of hiSIOri<:al and estimaIIo! historical (OSIs are not avai1able.
We have applied proc:olures to ItS! the City's rompliance with the following requi.,ements appJiQible
10 its federal financial 8S!istance programs, which .... identified in the a=mponying Schedule of
hde:aI Financial .Msls1ance, for the y= ended June 30, 1992: political 8l:!ivity, Davis-Bacon Act,
civil rights, cash ~t, relocation .J'ista~ and real property management, federoJ finaDci2l
reporu, aII0w0b1e ccstiIcost principles, drug-free workplaoe and administrative requirements.
Our proc:olures were limited to the applicable proc:e<iures de,cribed in the Office of Management
and Budge!" Conrpliilna Supp_ for Singk Audits of SIoJ. tmd LocfJ! G<wernmenrs. Our
procedures were substantially less in JCOpe than an Oildit, the objective of whiclI u!be expression
of an opinion .. !be City's compliance with the requitements listed in the pteceding paragraph.
Acamlingly ..... do not cxpI"eSS sucll an opinion.
With respect 10 the items testod, the results of those procedure> disclosed no material instances of
noncompliance with the requirements listed in the """"",d pangnpb of this repon. Wi th fe.'J'OCl to
items not tested, nothing came 10 ocr attention !bat caused us to believe til-at the City bad not
complied, in all materu.l respects, with _ requimnents.
This report u inteOOed foe the information of the City Council, management, its cognizant agency,
and otI1er fedenI agencies gza.,ling funds to the City. However, this report is • matter of public
record and its dutribution is no! limited.
Menlo Park, CalifCltllia
Novembec 6, 1992
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CITY OF PALO ALTO
SCHEDULE OF FINDINGS AND QUESTION"""cll COSTS
for the year ended lune 30, 1992
• There were no open finding, in our report for the year ende<llune 30, 1991 requiring follow
up.
• We bave ~ cor.espondence from the Department of Housing and Urban Developm""t
.. iUcb indicates that 2li findings from HUD monitoring visits performed in lu1y 1991 and
Ianuary 1992 have been resolved.
• As part of the City's subrecipient monitoring activities, the City Auditor'. Office noted an
""""J'Iayment of $3,704 and un.--eported progrun income of 512,031 to be retllIn<d 10 the
City'. CDoo program account by <me <ubIecipient.
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