HomeMy WebLinkAbout0520.091~ ,
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January 9, 1992
THE HONORABLE CITY COUIICTL
Palo Alto, C,lifor";,
Attefition: Finance Committee
COMPREHENSIV~~J!Al_ fINANCIAL REPORT. ENDING JUNE 30. 199:
Members of the Council:
Report in erief
In accordancE: with Art ic1 e I~, Sect ion 13 of the Ci ty Charter, the Comprehenslve
Annual financial Report, -;ncl'Jd~ng the opinion of Coopers & l,Y'brand, for the
tlscal year ended June 30. 199], is hereby submitted Tor you,.. review. The
financial st~tenents are-the responsibility of the City's management; and Ccopers
&. lybrdnd's responsibility is to express an opinion on th~m, based on their
audit.
GENERAL INFORMATION
The City of Palo Alto is located approximately 35 miles south of San Francisco
in Santa Clara County, and n'!:5 a population of 55,971. ft is a part of the San
Francisco Bay metropol itar. area. The City 'Was named for a tall red'l'iood tree
under which an early Span~sh exploration party camped in 1769. The high
technology ind~str'y, which has made Santa Clara County famou!, has its roots in
Palo Alto, part1y because of the presence of Stanford University adjacent to the
City. The 650-acre Stanford Re5€arch Park includes tne headquarters of ,Hewlett
Packard, Varian ASSOCiates, and Syntex among its reSidents. The City is a major
emplllyment center with abc.ut 68,000 jobs, in addition to being a ur.ique
residential comrnlmi.ty wHh about 25,200 hO'js~ng units.
For financial reporting purposes, in conformance wit:, Governmental Accounting
Standards Board Statement 14. "The Financial Reporting Entity," the City of P.alo
Alto's financial statements include all component units that are financially
accountable to the City or whose relationshIp ~ith t~e City is so signif1can~
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that fiilure to include the<il in the City's financial statements ,,",ould make the
stai.ements misleading cr incomp~ete. Financial accountabilit.Y is determined
based upon l} the City's SUJstat1ti'o'e authority for appointing tMe governing
board; 2) the CH,Y's abilit.1I to imp.cse its will on the organ;zatiar,'s operations;
3} the organiziiltlol'l's abjl Ity to provide financial benefit$ nJ' a financh1 burden
on Hie City; and 4) fiscal dependency on the City. Accordingly, the Cityrs
general purpose financial statements include the City of Palo Alto Gelf Course
Corporation and t~e Palo Alto P~blic Impra~ement Corporation as component units~
I'!'\c1uded in thh repC'rt 15 the City's Sin.gle Audit Report for th.e year ended June
30, 1991, prepared to meet the requirements of the Sir>gle Audit Act of 1964.
GaV,RNME_, ORGANIZATION
The Cit) of Palo Alto was lncorporated in 1894, and operates as a charter city,
ha .... ing had its first charter granted by the State of Cal ifornia irl 1909. The
City c>perates under the cou11ciT -manager form of government. The nine Council
Members are e1ected at luge for four-year stagge'l"ed term!.. The Mayor ar,j Vice
Mayor are elected annually at the fjrst CounciT meeting in January. The Mayor
presides at all Couf1cil meetings_ The City Mar\ager is responsible for the
operation of all municipal functlons except He offices of City Attorney, City
Clerk, and tity Auditor. lhese officials are apPoi11ted by and report directly
to the Cit, Council.
~ERVICES PROVIDED
The City provides a full range of municipal services, in addition to providing
its own municipal electric, i>o'ater~ gas, wastewater, storm drain, and refuse
utl1ities. Its scho01s, parks and recreational facilities are outstanding. The
{ity owns 34 parks totall"ing more than 4,000 acres. i goTf course, two cOll1llunity
centers. Cu1tural Center, Com;r,unity Theatre, Children'S Theatre and Jlinior
Mus.eum.
ACCQUHllNG SY~lEM AND INTERNAL CONTROL
In develQP~ng and ~"la1uating the City's accounting s.,.,st.em, cOflsiderati;;ln hCiS been
gi .... en to the adequacy of internal accounting con.trols. Internal accounting
contra1s are designed to provide rea.sonable, but not absalute, assurance
regarding the safeguan:hng of assets against 1 DSS from unauthori zed user
dlspcsition, and the rel iability of financial records for preparing financial
statements and maintaining accowntabtlity for assets. TMe concept of reasonable
assurance recoanlZis that the cost of internal controls should not exceed the
b~nefits likely to be deri'o'ed; and tha: the evaluation of cost and benefits
requires estimates and ju~gments by management.
The City Auditor is appointed by the City Council. Tne Auditor's Office performs
fir.c,ncial and. o?eraticnal compl iance. audits raf City O):leraticns a.nd iSSolJes. H:?Orts
to the {ouncil and City Manager as appropriate.
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Budgetary control is maintained by an an,nwll appropriation ordlnance, amended by
Council action as required throughout the year. In 1990 the Council adopted the
concept of a two-year budget plan, under which the fir~t year's budget is vuted
M and formal1y appro .... ed by U1e Cour,cil; and the second year is approved in
concept, and is fonr.ally adopted in June of the second year. The blo-step
adoption is because Proposition 4 (Gann) limits the City to an annual appropria
tion limit, The Council takes simnar action or. the first two years of the Five
Year Capital I'liiprovem?nt Program (CIP). The first tlIIo-year budget was for fiscal
years 1990-92. Adjustments to the two-year plan are made via an Interim Budget
process. Budgetary control is at the d~~artmentifunction, major object code of
e:f.pendit\Jre. An encumbrance syste!'n is util ized: as purchase orders are issued,
corresponding amour.ts of appropriations are reserved for later payment so that
appropriatior!s may not be o .... erspent. Budgets are prepared for the Generi!l,
Special Revenue, Cipital Projects, Internal Service, and Enterprise Funds.
~IGNIFII:.y;T EVENTS ANO ACCOMPLISHMENTS
Council Priorities: In February 1991, the Council selected three issues as 1tS
priorities for 1991: appropriate levels of service, people in crisi~, and
regional governance. The first priority. assigned to the CO\Jncil Finance
CO!TlTlitti!e, was to establish appropriate sen'ice levels consistent 'With available
funding~ and impr-ove communications with U1e pub1ic regarding the funding levels
required to provide needed senliCE levels. Staff prepared a comprehensive
service inventory for all services pro ..... ided directly to the public. The Finance
Comnittee reviewed the inventory and in~tiated it series of public hearings
focusing on the Community Ser~ices Department, desigred to solicit ideas of ho'W
to 1) provide current s~rvices more -2fficiently in order to maintain them in the
face of shrinking resources; ~r.d 2) to ger.erate revenues fr{lm programs to ensure
their continuation.
The Council Policies and Senlices (c,mmittee was assigned work. on people in
(risis. With the assistance of the Human Relations Commission (HRC}~ the
Cormnittee recommended to Council and Council adopted an actior. pTan which
included roundtabTe meetings witn nonprofit agenCies, staff review of existing
information and referral aoencies, arc! dirEctiori to the HRC to work with Urban
Ministry and Palo Alto Co~:nunHy Child Care to develop a pilot program to provide
Dccasional Chlld care fDr homeless families.
The Council has been worki~g ... ith He P1anning Commission to address the priority
of regional gm'ernance, includin.g the proposal of the Bay Vision 2020 Commission
(and Bay ViSion Actiof1 C.oalition), as weil as transportation, air qualitj and
land use pTanning issues. In additiQn to participating in the political process
ti'1rough Association of Bay Area Governments and the Goverr,or's Interagency
Council on Gro~th Management. Council Members and staff are active in areas such
as p€ninsula train service, Santa Clara County transportation p1ar1ning and
congestion management. the S~n Francisco Estuary Project, the Bay Basjn Plan,
solid 'Waste planning. and non-point source discharge prosrams.
Cubberley Comunity Center: The City and the Pal
have entered into a unique and complex agreemen
benefHs for the City. the District and the commun
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Alta Unified School District
which win have Significant
\y. In 1987, Pa10 A1to 'oters
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approved a utility us.er> tax, whose main purpose iWas to pay for the lease-of
surplus school sites, thus providing the District 'lrrHh muc.h needed revenue, as
well as ens'~ring that the facilities would be avanable for open space and public
use. In exchange for appro~imately S4 million annua1ly, the City receives 1) a
covenant not to d-evelop five neighborhood elementary school sitH; 2) a lease on
the 35-acre former Cubberley High School site~ including lBO,OOO square feet to
be used for (ommunity theatre, sport and art groups: and 3) an agreem~nt that the
district will prolJide space fer extended day care it each of 11 re!'Trairdng
elementary school sites. The "lease and CO'w'enant Not to Develop-teok effect in
January 1990. The agreeme~t is for 15 years with options to extend for both
parties. After a lengthy publ ic process, the Cubber1ey Master Plan .. as deve10ped
a.nd adopted by the Couocil 1n ~,pri1 1991. C{!mri',utiity d-c.sires for presena.t'lJr. of
open space and pro~ision of 10w cost space for artists, dance groups, Foothill
College~ music and theatre actl"iti~s, recreation and athletics. nonprofit
community organizatior.s and co~unity meeting space were acco~odated in the
Plan. The bul Ie. of the Master Plan cannot be funded with eXlst ing sources of
re\lenue, and a cOrnlunity support group is being formed to raise funds for
implementation.
Palo Alto Medical Foundation: I~ July 1991, the City Council appro'led the Palo
Alto Medical fnundation's prop\lsed remodeling and €XpanSlon project, after
extensive publlc hearings at both the Planning Comm:ssion and Counci1level~ The
adopted Specific Plan and Development Agl"eement includes: 1) a 4S~OOO square
foot expansion of Medical Foun6aticn facilities: 2) de'/elopment of FOL!odalion
h.cil~ties iA the block. bounded by Homer ~"'~TI\.le, Bryant Street~ th;:!lnTl1T'tg ~:ven\Je
and Ramuna Street; 3) reversion of the Urgent Care building site on Channing
Avenu! to single family residential uses; a,id 4) elimination of the e,x:isting
foundation parking deficit through provision of substa~tial on-site parking. ~
principally i~ t~a-level underground garages.
Neighbors of the .Medical Foundation ha ..... e filed suit against the project and have
also collected suffiCient signatures to put tne issue on the June 1992 ballet in
the form of a referendum. If the legal issu~s are settled and the electorate
reaffirms the City Council's actions, the Medical Foundation will proceed with
the preparation of de~elopment plans for required zone changes.
Flti.A.N~tAl Ji1 ~Hll GHl S
Economic OutlOOK and Cond~tions
The lia.ticlial rec:ession~ whic.h r.as r:H the SiHccr. Va',ley an-a especially hard',
continues to dampen City tax revenues as well as fees and charges. Sales tax,
property tax, utility users tax~ and transi~nt occupancy tax all evidence the
effects of the continulng 1ac~ of con5.'Jmer confjderce and reduced buying power.
Lo-we.r interest ra.tes. translate into red1iCed carnin.gs for City portfo1io
investments.
The State of California has been ~restling ~ith sizable deficits for the past
selleral years. and continLies to look to focal governments to absorb the costs of
nt:-w mandates, or to provide funding for programs previously funded by the State.
Senate 8i11 2557. passed b,Y the LegisTature for fiscal year 1990-91 and not
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r~pea'ed in 1991-92 despite concerted efforts by local government representa
tives, requires local governments to pay counties for the costs of booking
prisoners and for property tax administration, ~ith th~ 1991-92 budget, the
Legislature deter'Tlined that cities sllould also tle1p ffnan'Ce He tdal courts~ and'
through Assembly B111 1297 reql.d~ed that hal f of all non-parking fines and
fcrfeitures attributable t~ cities be shifted to the State. as ~ell as imposing
an additiona1 51.50 charge payable to the counties on all parking citations. For
the upcoming fiscal·year 1991-92, these actions by the State are estimated to
cost the City ever sooa,ooo in. additio;1a1 e.xpenses or lo~t revenue_ The
progno$is for th~ State significantly improving its fiscal management is not
good, so the City can expect to see these cost-shifting maneuwers to conti~ue.
General Fund
General Fund op~ratin9 re>ults far the 1990-91 fiscal year were more favorable
tnan had been ant icipated. Tatal actual expendi tures exceeded tiJtal reverlues by
SI81,000. Expe"ditures Wfl"e 51.9 million (3 percent) lower than projected, due
in great part to one-time factors that are not 1ike1y to recur: a $1.2 million
savings in general liability expense, and a rewersion of 5700,000 in the ~nspent
B~dget Advance Reserve. Revenues were higher than exp~cted by 5500,0'00 0
percent}. mostly due to increases in the categories. of fines and penalties, and
s.endee fees and permits.
Revenues: Sales t~x revenues exceeded 1989-90 receipts by only 2 percent. The
marginal increase had ber:-n anticipated, due to the dampening effect of the
recessio~ on both retail sales and overall business act'vfty. Property taxes
increased 8 percent from 1989-90, 'With the largest increaSE in unsecured property
tax. Se"=ured property tax receipts rose si ightly, but revenue in this category
'lias redl:ced by County charges for processing the taxes as provided in Senate Bill
2557. Utility ~ser tax rewenues were 4 percent below budget projections due to
lower water, gas and electric saies when compared to budget, and flat telephone
receipts. Transient cccupancy taxes decreased 2 per-ce-nt o\ler the prior fiscal
year~ as bUsiness travel was reduced du~ing the Gulf Crisis. Other taxes also
show decreases from 1989--90: motor 'oIehicl e in l1eu. document transfer and
cigarette taxes all came in slightly below budget. Police fines exceeded
prQj~ctiofis by 5Z00.000, due to increased staffing in this area and improv;:d
collectior,s by the City's parking fine contracto!". Sen/ice fees and permits
revenue increased almost 10 percent o~er last year, due mainly to projected
volume increases in ser'o'ices prG'Jided and a higher cost recovBry rate for some
seni ces.
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CITY OF PALO ALTO
GENERAL FUND REVENUES BY SOURCE
FDr the ~ear endod June 30,1891
4.7&%
,a._
10,4Q1!11!
1991
Revil;nues !iDDO) Actua1
Sales tax 51 4 ,140
Property taxes 8,109
Other taxes and fines !I,57l
Service fees and perw.tts 6.168
Fire protection & e~ergency
communication ser .... ice~ 3,551
]nterest earnings J, 91 S
lnterfund charges (net) (309)
Otner revenues ~
Total direct revenues 47,743
Operating transfers in 14,001
Tot., rev~r!ues S .!.!...l.!.i
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• Property TlUes -
0 ~sTues
• L'tIIlt)'U~'Ta..;
I!li TranMr"/I OccLIDlncy TaA
0 OthefTues
!lll FMs&'PermltJ:
0 ,-. ..
C Eme~ sv.;ce.s
1:3 Other Raile'lL'"
Percent Inc:reas.e
of Total (D,cr •• s.)
Re .... enue from 1990
21.90 153
13.13 5,7
18.74 (33 )
9.99 553 ,..
5.77 532 ..
l.ll ( 452)
(.50 ) (1,728)
i..ll ~ ...
77 .32 (7J3 )
11.68 (~) ..
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f!P.enditures: Actual e~per.ditures fo. salaries and benefits were 3 percEnt over
budg~t for the year, and 3 perce~t ower 1989-90 expenditures. Although the
budgeted 51.2 million P~blic Employees Retireme~t System (PERS) surplus was
utilized, vacanc.y savings wEre not as high as anticipated; and increases in
health, dental a~d life insurance costs for employees exceeded budget projec
tions. Sailings were experienced in all non-salary expenditure categories for the
General Fund, hO',oIever. Most notably, a $1.2 million savings ;rl general1iabt1ity
costs was realized~ .as c;Jnfirmed by a i991 actuarial review of the Cit)"s. sel f
insurance program. In addit~on, a Sudget Advance Reser¥e had been established
in the 1990-91 budget to a110w department3 to pull forward appropriations from
the second y~ar of the 1990-92 budget, 'With approval of the City Manager. No
Bu1get Adv~nce Reserve funding was used, hDwe~er, resulting in an ~ddjtfonal
$650,000 •• ving •.
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CITY OF PALO ALTO
GENERAL FU~D EXPENDITURES
For the ya.r ended Jone 30, 1991
1'.1~
]991
Expend; tures /leOO) Actual
Publ ic Works $ £, 154
Pel ice 12,867
Administration 11,978
Fire 9,762
Soci .1 and Community Ser~ices 11,6U
Planning/Community Environment ..L.i..U
Teta1 direct expenditures 55,289
Operating transfers out ~
Tetal expenditures $61,915
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• Ac!mlristratloo
m PublicWoM
• Community ErNironrntnl
I!I P,Boo
0 Fico
13 Social SerVoees
Percent Increise
of Tet.1 (Decrease)
llgenditure from] 990
9.94 (1,654)
10.7B 986
19.34 1,008
15.76 695
1B.81 BOO
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B9.28 I. 651
J.O_JI L.lli
llQ..£Q 3.071
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CITY OF PALO ALTO
GENERAL FUND EXPENDITURES BY TYPE
For tl\e year ended June 3D. 1991
Expenditures (SOOO)
Salaries & Benefits·
Contract Servlces
Supplies & Mate-rials
General Expense
Rents & leases
Facilities & Equipment Purchases
School site payments
Total direct expenditures
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72.59%
1991
Ac.tual
540,128
5,053
2,002
2,623
560
828
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55,289
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rn Salaries and Benefits
[3 Contrlllct Services
• Supprtes arld Materials
~ General Expense
0 Rents and Leases
• Faolities & EQUip PurChases .. School She peyme nts
Percent Increase
of Total t,D€c.T""€ase)
Expend'iture from 19~Q
72.58 1.505
9.14 3
3.62 (332)
4.74 (773)
I. 01 30
1.50 268
-L..ti -..lli
100.00 I ,651
Fund Balance: Total General Fund equity increased by $954,000 over t~e prior
fiscal year. The Reser\le fer Streets and Sidewal ks increased by 5265,000 due to
the closil'19 of completed' projects. the Reserve fGr" Advances: to Other funds
increased by 55i1,OOO. to reflect ad',r~nr:.es to t~e Storm Drain fund (SI.3 million)
and Gas Tax Fund ($500,000), and the repayment of a General Fund advance of $1.2
million by the Water fund. The Reserve for Genoeral Contingencies remained
unchanged at S5 mi11ion.
Assessed Valuation and G-eneral Property Taxes: Net assessed va1'uation for the
year ended June 3{)~ 199J was apprc:<iP.lately $6.5 binion, an increase of 6.813
pe'l"cent ever the pre .... ious year. For as.s.~sslr.ent purposes, property is c1 as.s'\f'<!d'
as either ·secured" or "~nsecured" and is listed accnrdingly on separate parts
of the assessment roll. General property taxes are based either on a flat 1
~ercent rate applied to the 1976 full value of the property or 1 percent of the
sales price on sales and CO~5truct'~n w~ich occ~rred lft~r the 1~76 valyation.
Assessed values on property (exclusi\le of increases reh!ed to saies and
const,uction) can rise at a maximum of 2 percent per year.
Spec~al Revenue Funds
The Special Revenue Funds, w~icr. incl ude the Street Impro\lement Fund, Federal
Revenue Fund. Housin9-i~-lieu Fund, Special Districts Fund, and Transportation
Kitigation Fund', as well as the Publ it: Improvement and Golf Course Corj)orati<ms,
are inciuded as component units. In february 1991, SO percent of the proceeds
from t~. s.l. of the Cit,'s Seal. ~ell site 11607,500) WiS used to assist the
purcha'Se of an apartment complex at 630 los Robles A\lenue A S2.1 million loan
from the Housing-in-lieu Residential account \lias authorized to the P3.10 Alte·
Housing Corporation to aid in the procurement of this 1aw-and moderate-income
housjng project. Tne loan will be for-given over the next 20 years as a
contribution.
Enterprise Funds
The Enterprlse Funds of the City include the Electric, Gas, Water, Wastewater.
R1!fuse~ and Storm O;-ainage funds. Tlje Pale Alto Utilities were awarded th€ E.f.
Scattergood Award for system acl1ievemert by t~e American Pu:blic Power Associat;on
in June 1991. Only two utilities in tt1e nation were give" this award. During
this fiscal year, staff finalized negotiations fOf sale of part of the City/s
~x~ess Cala\leras Project power to tne City of Roseville, which w11l reduce debt
service and operations and maintenance costs by apprOXimately $'2 minion per
year. A power pooling operation wltn the ten interconnecte<j cities of the
Northern Ca1ifornia Power Association ~'as initiated, IoIHh an anticipated sailings
of 51.S mi11ion annually. Palo Alto negotiated favorabie changes to prellicus
t~lifDrnia Public Utilities Commls~ion rulings, which ailow tt'Je Cit:; to I'l~gotia:te
a one~year corrtract wi th Snel1 Canada for purc~.ase and del ivery of natural gas.
This contract provides such a favorable price that the City wa~ able to secure
Sl.7 million in annual savings and avoid a previcusly a~nounced IS percent gas
rate increase. Redes191'1 of me-ter reading routes 'Has c~m?leted~ resulting in more
current accounts recei\lable. Staff also developed conservation prognms designed
to meet two levels of ~alter comer-vat ian requirements, and executed the final
program so as to avoid some S340,OaO in potential fines from the San FranCisco
Water District. Enterprise f:Jl'1d revenues were S3.2. million short of budget
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projections, but exc~eded prior je'l.r re~'enues by 4 ~ercent. Sa .... ings werE
realized in eIJery expenditure category, and totaled S12'( mil1ion. Tr,is served
to increase reserve balances where decreas€s t,ad been anticipated. The largest
sa .... ings were experienced 1~ utility purchases ($5.5 million), and administration
and general expense:) (S6.4 million). The savif1gs in the category {If genera'
expenses were due in part to tIle a::haritageous ir.tere$t rate achieved (5.7 percent
actual '.IS. 8.5 percent budgeted) on the bond refundif19 in the Wastewater Fund.
CfTY OF PALO"" TO
EWTERPRISE FUNDS AfYEHliES
For tfM rur .I'uied JUM 3D, 1991
Revenues (SOO01
Utility Sales
Other Revenue
Interest Income
Total Reven\.les
E.!H~~n~~:i (5000)
Employee Services
Operating Expe~ses
Purchases
Total Expenses
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crry OF PAl.O AL T~
E.NTERPArse FUNDS OPERATtM> EXPENSES
For tn. y .. r "I'td~ Ju". 3(1, 1"'
1991 Percent
Actual of Tot,l
S105,SS: S6.89
9,359 7.71
6 578 ~Q
$121,488' !l!£...Il!!
16, C96 18.93
16,718 19,66
52.154 51. 41
S~ !QQ..Q!!
~Il ...
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Increase
(Decrease,
from 1990
5,435
(8l8)
~
4,775
I, 119
405
_649
S.l..1.§.l.
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Cap~ta' Projects Fund:
Major project expenjit'Jr~s in J990·91 incllJdE'd sidewal ( repairs and street
improvements, fU'1ded by boH the utiltty users tax and State gas tax moni'6's; and'
the near-completion of the Greer Park Development project. Proceeds from the
sal! of the City's Seale (,Jell site ($507,500) served to boost the Reserve for
Capital Projects, as did the closure of several other capital projects
($948,648). After a transfer of S1.1 million to fund General FUl1d reSErve
rec;u~rements, and additional UP appropriations if'j 1990-91, the Reserve fer
Capita' Projects stood at $5.4 million at fiscal yeGr-end, nearly unchanged from
a year ago.
REPORT FORMA!
The Comprehenslve Annual Financial ;<'eport (CAFR) has been divided into four
sections:
INTRODUCTION: This section transmits the CAFR to the City Cou~cil, and inci~des
a City organization chart ar.d table of contents.
F!N.ANCIAl SECTION: This includes:
Gen~ra' Purpose finan~ial Statements
This section contains the i;;d~pendent accountant's report, and the general
purpose fiJ}ancial statemer.ts, (GPFS), a1so known as the combined financial
statements. which reflect a complete summary of the CityIs act;~ities. and
encompass all fund types arid account grQUps. Th~y present a combined
overview of tho;! financial position, changes in financia.l position of
proprietary funds, and o~erating results of the completed fiscal year.
This section also includes the Notes to the Financial Stat~ments. which
cOlTlTlunicate information necessary for f:iir presentation of financial
position and resu1ts of operations that is not readily apparent or cannot
be included in the financial statements themselves. GPFS are ·liftable",
and tJ1ay be issued separately fro:;] the C.~FR, for inclusion in official
state~ents, bond offerings, or for distribution t~ users requiring less
dEtail~d in~ormation than is contained in the co~plete (~FR.
Combining Fund Statemer.ts
This section presents combining and indiiddual fund and account group
statements and schedules. Combining finanCial statemerlts are presented in
each instance where the (ity has more than one fund of a given type (e.g.
the Enterpri Soe FU!lds,. Indi ~'i dual fund statements and schedul es are
presented for cert~in indi~idual funds and account groups ~here the City
has only Dne fund of a speciflc type [e.g. the Capitdl Projects Fund) or
to give more detailed infor~atjon than is presented in the GPFS.
STATlSTICAl5ECTION: This section pr~sents c»mparativ~ statistical data for the
past ten years. and ot~er pertinent inform~tion involving taxes, revenues?
expenditures, and bonded debt.
CMR:S20:91 xv
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SINGLE AUDIT RE.POfl.TS: This section ilicllldes He Single Audit Reports relating
to the City's federal fina~cia' assistance progr~ms.
ACKNOWL toGEMENT
This Comprehensiv~ Annual Financial Report reflects the dedication and effort of
the staff members of t,he Finance Department. Especially desE-ning of recognition
are Carol Ferr~11. Li~da Craig, FTora Tzeng, Clauda-Pascual, Tony Sandhu,
Jennifer Cl":ang, Donna Bje11and, Melissa Eddy, Jim Steele, St1ari Reyn;Jlds.
'Virginia Karringtorl af1d Betty Barthen. Sen;orAuditor~ Tracy Kwok. also provided
'IIa1Liable assistance. Final1y. a:::k.nowledgement should be given to the City
Council Finance C(lm~ittee. whose direction and support are essential in the
effort to cOrltinual1y imprcve fln<H:cial reporting .
. _ R~UllJ SUbmitted:
~0~"u<! DirEctor of finance
~1f.;z2 ~ft; Manager
CMR,S2D:91
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REPORT OF INDEPENDENT ACCOUNTANTS
Honorable Mayor and City CouncG
City of Polo Alto
Polo Alto, California
We have audited the a«ornpanying general purpose financial statements of the Ci1y of
Palo Alto, California (the City). as of and for the year ended lune 30, 1991, as listed in the
financial .. crion of the table of contents. These general purpose financial statements are the
responsibili1y of the City's management Our responsibility is to express an opinien on these
general I'urpose financial statements based on our audit
Except as discussed in the following paragraph, we conducted O\1r audit in accordance with
generally accepted auditing standards. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the general purpose financial statements
are free of material misstatement An audit includes examining, on a test basis. evidence
supporting the amounts and disclosures in the general purpose financial statements. An audit
also includes assessing the accounting principles used and signfficant estimates made by
managemen~ as well as evaluating the overall general purpose financial statement presentation.
We believe that cur 2..1.i.dit provides a reasonable basis for our opinion.
We have been unable to satisfy ounelves concerning a SL.:bstantiJ.l portion of the reported cost
of property, pl""t and equipment in the General Fixed Assets Account Group because detaI1ed
rcroTch and documentation of histori.caI and estimated costs are not available. The City's
records do not pennit the application of adequate audit procedures regarding the reported cost
of the property, plant and equipment included in the General Fixed Assets Account Group.
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fn our opinion, except for the effects o[sucb adjustme,nl!., if any, as might have been de'.oermined
to be ,necessary had we been able to satisfy ourselves regardlng!be reported cost of the City's
property, plant and equipmen~ included in the General Fixed Assets Accaunt Group, as
e"Plamed in the third paragraph, the gener.u purpose financial statements ref~rred to in the
first paragraph present fairly, in all material respects, the financial position of the City of Palo
Alto, California, as cr June 30, 1991, and the results of it5 operations and cash flows of its
proprietary funds for Ibe year then ended, in confannity with generally accepted acco:mting
principles.
Our audit was made for the purpose of forming an opinion on the general pwpose Enallcial
statements taken as a whole. The combining, individual fund, account group fina.'1cial
statements and other financial schedules Ilsted as supplementary data in the table ,,[ contents
are presented far purposes of additional anaiysis and are not a required part of the general
purpose financial statements of the City. Such information, except for that portian designated
as "Statistical Section" in the table of contents and marked "unaudited,' On which we <"Press
no opinion, has be<on subjected to the auditing procedures appUed in lbe audit of the general
purpose fulancial statements and, in our opinion, except for the effects af such adjustments, if
any, as might ~ave been determined 10 be necessary bad we been able to satisfy ourselves
regarding t.~e reported co.t cof the property. pIant and equipmen~ as explained in the third
paragraph, such information is fairly presented, in all material respects, in relation 10 the
general purpose financial statements taken as a whole.
Menlo Park, Californla
November 8, 1991
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COMBI"'ED FINANCIAL STATEMEJIo'TS
These statements provide an m:er'\'iew of the financial' positicn and the operating results of al1
fund types and account groups. Separate columns are used for each fund type and acco"nl
group.
_ .. ______ .L_ . ____ .. __ •• _ ~,-_ .• ___ ........ ____ bL_'rIllU .. 1
CITY OF PALO ALTO
OOMBIl>'ED BALANCE SHEETS, ALL FUND TYPES AND ACCOUNT GROUPS
Jw:e 30, 1991
(in lhousands of doD.aTs)
i~rnm~nl~~ 1"'di1 capitiJ
Ww! &=< ~ ~ Asxb aDd o6ter debits:
Cash and ~cu.t.s $ 6,771 $6,110 S 3,993 512,4""
R.«e:"-abIes, net:
A<XOUAU 3,481 54S 8,480 851
Int"", 2,572
N", .. 420 3,'225
_AdVUZl(lC5 to other fund 2f,67
Stores iD'oI'Cntory 1,10:/
p"paid~ ,
Propeny, .... ~..u, DC' Amount aYailable for ser'on
AmGUnt to ~ ~ for r-vtircmen1 of gcneru
:Ol!g~tcrm
Total assets and othe: dehits U1Q1!l I2.!lliQ ~ 1W.i.l
Liabilities:
A~ ~!e and acaued liabilities 1,80, 250 604
A«nJ<d Waria ""d benefits 1,039
Deferred r'C\'eAUC 2.'!O 8,420 79
Dd=<d ",,"pco>Wca
Ac=cd c:ompemated w..n= A=uedodl~
Advauces from ~ fund 500
General obf'P."On bonds
Revenue boQds
~ __ ol~
Special '''7"="'' vi.th governmelltal
com .. "",.., Capital lease .x.r..,tions
Total liabilities ~ ---1.lQ ~ ~
C_ .. d CcJatiDreo<ks (N'" 11),
F"d~1y: Co utcd tapitaI
III.~ent in general fixed assets
Retained canu.ugs
Fund balances::
.Reserved for:
EDalmbrances and reappropriation.s 4,006 2,3'fl 7,255
N",,,, 420 3,225
Advancca to oc.ha fund 2,6Cl
~cc 1,109
U=rvod: ',053
Streets and sidewalks/school site projects 632
Capl;at and :special r~nue projecli 4,413 5,415 CoOt' , 5,(0) Urd";~
Al=miilated ckficit ..ill!l)
Total fund equity .J.lLl:! .2.l.l!i ~ ~
To<alliabilltics and fund "luity ~ I2.!lliQ ~ 1W.i.l
The IKoCOOlpanying notes are an integrill part of lh~ combi.ced .fi.oancia! SLalements..
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Pmmjetary Fug~ E~1h Dirat (Memorandum OnIy) Trust anil F~ l<l~1= June jQ , nul
Enlc:mriAe :imi&o Agegcy .AiKLL Jm lZ!!
< S 81.877 517.99' 519,240 51.08,481 5136,560
13,419 26 26,80& 22,410
~ 8 l,!JO 2,113 ... 3,64S
1f,t;7 2,m6
121 1,%30 903 ., 995 130 1,us 1,086
i 155,568 1,125 S101.731 264,<14 245,226 -S 3,994 3.99' 4,475
"1 ..l.l.ll.lZ ....wIll ~
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'.836 432 104 11.1)93 8.cD6 ., .005 736 2,180 2,140
...;l &,779 9,140
19,042-19,1)42 16.,,48
334 6,413 6,747 6,3&5
"1 802 S,218 6,020 6.430
I 2,167 If,t;7 2,096
...J 1,225 1)15 1,300
12,280 !l~ 14,797
~ 5,125 S,us 5,275
~ 11.649 1,649 9,136 ~ ~ ~ J.ill ~ , .zLB:l2 ~ ~ ..I2.Q!ji JIW1 ~ J
~ 56,590 4,877 ~1,s67 59,581
101,731 101,731 93,282
171,330 5,466 176,796 160.697
III 13,658 B,141
3,645
l,u;7 2.096
1)09 903
~ <,oS:l 6,184
632 367
'.833 9.>44
5.000 5,000 , 94 94 86
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~ .ll.M?il ~ ~ .1Q1.lli ~ -'.5Q.ill
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crrY or PALO ALTO .., COMBINED STATEMENTS OF REVENUES, EXPENDITlJRES A)"D
CHANGES IN fUND BAlANCES -ALL GOVERNMENTAl. fUND TYPES ,
for the )Ul" ended JUDe: 30, lWl -~ (or. -hO<lS4nds cl dofut.)
~ Tc<Ab !
I (M~l'1ou.Ddum ~
-, Yean~ded
ifu~c Deb< Cap;,.] llm~ JQ J \i<Ilml Smig: fioJ«!.I ll!'!l l22!l ......,...,
Property""" $8,109 • '.11)9 S 7,512
J Special aues.sments S~016 1,016 9'J<J
Salcou= 14,1040 "~40 13,987
Utility U5Cn;' t.u 4,967 4,961 4,833
-, Transient ~c:y la."I: 2,969 1,969 3,040
! Other taxes ana fines 3,637 S 950 .~ '"'<46 .; FU"C prQ(ection and emergency
~UD:ication suvices 3,561 3,561 3,029 ., From other ~cies 436 361 21 • S 698 1,711 1.169
I Service foes arid permits 6,168 6,168 5,615
~ lD1c=t ...mng. ~19 1,037 316 3,2';1 3,737
latedund chMgco, .., (309) (309) 2,419
"1 Othct== ...l.L~ .1..lli ~ ..ll.l!l ..1.lli
TOial .raeo:ues ~ ~ ..u!II --Ul!!! .Mm -= -' EKpazd1tareoo
Cun=t opcra!i<>= -, Administration 7,883 7,883 7,825
J Pub&; works 6,154 '~!4 7,Fa
Communlty ccviroDm~ 2,881 1,8Sl 3,065
Public: .safety 4 Polic~ 12,867 12,167 1l,B81 .... Pubtic safety -Flrc 9,762 9.762: 9,067 , , Social scni~ 1lt'47 11,647 10,847
~ ScbooI site program. 4,095 4,09S 3,145
Special retJeG'QC and capital projects 980 8,323 9,303 5,641 -, Debt scnic:c:
J Priaclpa1 rcfu'tmrml: 1.289 1,289 1.113 _ ... and fiscal dwp .l.JW ..lAS! ..l.&!
~ Total QPCIlditurC$ ~ ~ ..1lJ2 -lUZl .u.m .un;
j Eu:e:u or rc:ven~ oYU
(1m4cr) e>pendirures .J:L:dfi) ~ (UW .a.au> Jll&Q) JUlllJ
OIlIer IIDudDc ......., ( .... ): Opuating _en ., 14,001 889 8,741 13,631 21,724
Operating transfers otl! (6,636) (~122) (1,4lt>l (9~1W) (6,926)
Pr<><=d£ of re~ bon& 6,420 --, Pa)'Cl~ to bond ~ow agent ~ .. TOiaI othtl' fitwJclnj; 5OW'CCS
(=s) ~ !l.ml ..ill1) ...8.lli ~ .illm , ~ of rcveDLlCI. and other
--' ~ s.ow-~ O'IU
(UrJdc;).,,=~~ aDd o<her ..... (IBl) 2,620 (2,128) 1,726 1,637 7,505 -,
--' FaDII. bala:Dtts,. ~ of year 12,880 5,317 6,184 I2,L<4 36,535 34,220
.Rc.sidual tquiIy traasfer in 1,BS 1,l3S 2,3OB
-: Residual ~ tnms!er out (3) (1,210) (1,213) (7,498)
HotWa,g lmJ'lfO"Ulent Program notes .l.1Zl ..l.!Zl
~ F .. d Ioolaaca, cod of,.., ~ ~ ~ wa ~ ~
The accompanying Dotes Me' an i.Dtc:gral part
of these c:ombincd fuwldal 5latemeDU.
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CITY OF PALO ALTO ..
COMBINED STATF.MENTS OF REVENUES, EXPENDITURES AND CHANGES IN fVND BALANCES
" BUDGET AND AcnJAL ' GENERAL, SPEGAL REVENUE AND C'U'ITAL PROJECTS FUNDS ..
for the year ended June lO, 1991
(m mousaJids or do!lars) -..
QklOI!O:[il &gil S~gill B;YiIL~!O: FYII~ -
Variance Varianao
Favorable Favorable
fuIW! MIJIaI a.!g[a~~IQ) ~ &:IBII ryn!avQrable)
RnCD~:
f>,operty ta= S 1,921 $&,109 S 188
SaI",tuc. 14,100 '4,1010 40
Utility wers" tax 5.200 4,961 !ffll Tramiem oo:opanqr tu 3,161 %,M9
Other taJ;e$ and ~ .?,447 3,637 1\lO S m S ~ S 155
Fir(: protection aDd
o:mc:geacy commDDk:atiOll.
3,444 3,561 117 ,.,"'= ~
From other agetteies 333 Gi 103 533 361 (172)
Sc-rvice fees and permi1s 5,909 ',168 259 -IntGrCSl ca.-:ainp. 2,000 1,919 (81) 239 ',ll37 198
lnteofund charges, ... (305) (309) (4)
Other revenue$ ~ ~ --1.Q1 .l&.! .l.lli J12 -Total !nell,u;$ ~ ~g ~ ~ .!om -~
EzpeGdltu...., !"! Cuncm~ , -
Adm~ 8,62B 7,1113 745 ..
Puhac WO!'b 7,754 6,lSI 1,000
Comm~ eaw-oameDt 2,931 3,181 50 r" PubE. safety , Po!ico 13,0&3 U.861 216 ~ Public safety· Fire 10,0<1 ".762 219
Social services 12,305 11,647 658
School siI, payment ,,189 '('095 94 C Special ,..". .. ud
capital projects .l.lS!i _'!Ill ~
TotaI~ ~ .am ~ .l.lS!i .J!IIl ~ '" ~ or R~:lII:S I. """ (WIdcz)
"I""cfiru= Jll.lli) ~ ~ .l.!Il!Q = .l.W
O!h..-1IAaadDt;.....,.... ( .... ), '" Operating transfers il 14,.l51 14,001 (350) • OperatiDg tra£sI= out .J.U.m ~ .l.&ll i.lJ1:l1) = --1W
Total otbc< ~ C sources (uses) ~ ~ .ull i.lJ1:l1) ll..W) -CU)
E:c;.c:u of reYe%ltIC and
other financing sources
C over (ancIor) "'1='
diture& and other
financing D5e5 (5,762) (181) 5,581 849 %,620 l,nl
road baIan<es, beginning of year 12,880 1%,180 5,317 S.:U' C Rc:siI!L>aI cquily tansfer in 1,135 I,13S
R..>dualequitytransfaout
Housing ImptOYC1lleat Program
oo<cs .l.W .l.l2:l C road __ ODd of you ~ w..w Ll.2l ~ 12.LllI ~
The accompanying notes ate aD integral part of thet.e combiaed financial statements. a
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~ v..nanc:e Vari=<o
Favorable Fr.'OI'able
~ llwIar.I ~ fLlpfaypraht;) IWW .kbIII alnC, .. wabt.;)
S 7,921 , 1,109 $ 188
14,100 1',140 4()
5,200 ',967 f233l , 3,Hil 2,969 192
..J 4,242 4,517 ;45
.., 3,444 3,561 m J s 943 S 691 S (245) 1,809 1,495 (314)
5,909 15,163 l59
" (9) 2,248 2~ 708 .., (3()5) ~) (4)
-lill _JllI ~ ~ --21l!
~ ...1.3!!1 ..!.l.W ~ .= J.82:l ..,
~ 8,6Z8 7,883 745
7,754 6,154 1,600
2,931 l,881 50 , 13083 Il,I6'I 216 -" 10,041 9.762 279
.., 12,3OS 1i,647 658
4,189 ',1)95 94
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.J:J.:5lfI -I.m .ll.!X!.1 .1.1ill ...!J!1.l .ll.Ijl2
.., ~ -I.m .w!.l.l ~ -"1m ..rz.ru
-, ao.2OZl .1UW .lJ.ill ~) ~) ~
11,697 1,741 (2,956) 20,048 ll.'tZ (3,668)
JJ.:ill) ---Lm Q.,U;l2) .am .Jm
II ~ ..J.W i,Uli) ~ ~ -1£i
(10,822) I.m (15,735) ",165 19,900
12,154 U,154 30,351 3O,3S1
1,135 1,135
(l,210) (I,zW) (1,210) (1,zIO) ..,
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CIT\' OF PALO ALTO
COMBINED STATEMENTS OF REVENUES, EXPENSES
AKD CHANGES IN FUND EQUITY -BUDGET AND ACfUAL
AU PROPRIETARY FUND TYPES
foc-the year ended June 30, 1991
('" tbousaJlds 0/ do_)
ECl!;;rnri. .. c: Futl\ls
0peD~,........,
Sales utiHties.-
Customers.
City d<partm,,,,,
Wastewater trutmc:!ll
Service conn«:tiozI charg~ aDd m'.so:IlaueoU!
Charges for suviccs
Other reveDUl:S
ToLal operating t'CvetlUCS
~d:;:;j~.
Administration and eneraI
EnsU=' ("P."..J"g) Resour~
~ and maintenance
~Q aDd amorti.za.rjou
4wured lo6scs
Compensated absence! and other benefits
To<al opuating ~
Opc<ating inrom, (loss)
Nooopailtbaj: ft'VeD1Ie!I {~):
Int~ and divi:dend inC(lme
lnt=sl """""'" G~ "" disposal oIli:1td ......
U gas rate refund
Od= ~ """""
Total nonoperating revtDileS (expenses)
lDcomc befcre operatiDs: transfers.
OpfratiElJ 'l'rsDSrers::
Operaung transfers UJ
Opc:~ tran.den out:
Get'lC:r fund
Capital projc<U ~JJ1d
Net operating transfen
Net income:
-oonili>p, bot.:"~ of Y'''' CapnaJ' co!1tribmed om eneral Fund
Ass~ of Iong-tenn compec.saled abs.ecces
"""''''''''
1ktalDed. eaJ'DIn&s. end of year
Cootrlbcle4 "plta!, bog;nning 0/ yea<
Cootributions
CoatrfbDted eapftaI, ~d of ~
Toc.al rWld equity, end or year
Variance
Filvorabl~
~ ~ Nnhvo.-ab 1e )
$105,665 5102,477 $'3,~ 3,224 3,()7' (150
6,063 5,027 (~
496 no 224
~ ...Mll ~
.ill.UZ .ll!.ill .!.Um
57,793 5l,2.<4 S,5J9
11,476 S,m 6,383
4,365 l,57ij 1,795
5,]88 3,969 1.219
16,705 15,lll 1,452
5,165 ~g (764)
~ ~ ~
~ ~ Am
6,362 6,571 216
(7,446) (6~ 1,195
(246)
..illlIHl --'1 ....l..lf!5
~ ~ ~
(U'iW (~:;i~ (6)
-----22
.rum .ill.l.l2) -~
934 14,516 13,652
1.56,744 156,744
.l.llill! .!llJJ!I =
55,130 55,130
~ ~
~ ~ -Ll!iQ
~ mLi.iJ! ~
The accompanying Dotes ~ an integral part of' th~ combined financial 'SI8tements..
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I [P!ma] Seniee Fugd year Ended 'un, JQ 4991 Year Ended
;! ..J Variance: Va . .""iance June 30,
Fa .... orable Favorable 1990 ., lllIda<I &:IuaI (llD.rl!. ... Q:ril:bl~l fu!llitl ~ [!..lgf''''Q:rilbl'l Actual
I ...
-. $105.665 '102,477 $(3,~ S 91,579
3,224 3,074 (150 2,..537
"' 6,063 5,{}27 (1, 5,419
4% 120 224 61 -. $21,347 $23,902 $(3,445) Z7,347 23,9()2 (3,445) 23.sn
\ ---U!Il2 . .J.ill --2Zl ~ ..J .llX! AM -OM.l) ~ ~ ~) ....l.l.la!!
J 51,793 5%,254 5,539 51,605
591 1,111!11 (1,089) 11,061 1!I,773 S,294 1,&52 .., ',365 20570 1,795 2,65:'
5,188 3,969 1,219 4.,155
1,824 1,63% 192 18,529 16,885 1,644 12,645
9I!S 1,237 (2S2) 6,L'>O 1,166 (1,016) 6,309
-; 2,363 1,475 888 2,363 1,.175 888 1.559
.ll.Jl:! a!!m ~ ..11.ill ~ -Ml .JU.l.2
-i ~ u.ru --l&! .ll1.2:.!!! .lll.m ~1Xlli ~
I ~ .!Ulll ~ ~ ~ ~ -=
.J
190 980 790 6,552 70558 1,006 6,630
f7L) I'l) (7,5IB) (6,323) 1,195 (1,038'
..J 100 193 93 100 (53) (153) (W
.., ---1.l. ~ .J.lli --l.:i ~ -2.lli
~ ..l.m ~ ----'ill) ..1.lli --U21 ~
~ ~ --l:ll ~ ..l!IM!i ~ ~
8S9 B90 31 .59 890 31 202
-, (1.,1~ (14,151) ~ (14i~~?
II ~ ~
~ -MIl --l! ~) (I' 44') -ill .ill.12O)
1,341 10513 172 2,215 16,099 13,824 18,858
..J 3,953 3,953 160,697 160,691 141,604
5,190 .,
-1!.llil J
~ ~ --IL: .l!il.m -lli.12!i ~ .lli!1.lm
-,
4,.51 4,451 59,581 S',!OI S',53S
~ ~ --m -1.22IIi ~ ~
..J.m ..J.m JiJJll1 ~ ~ ~
1lQJ2l ~ LITI tm.222 5B8J§J ~ ~
8 ---_.
CITY OF PALO ALTO COMB~"ED STATEMENTS OF CASH FLOWS
AU, PROPRIETARY FUND TYPES
for the yeal ended June 30. 1991
(in tbou.<ands of dollars)
Cash !l0l\1. froa::;rE0 acrivlLif.S;
00e..atiDg i=;,m. (Ioos
Ailjustmenu (0 operat:ng income (loss) to
=t cash proW!ed by operating .. <::ti .. i.tie.s:
Depreciatioa aDd amortizatioll
ClwIBcs iD ...... aro.c! Iiabilitie<: e l =~"""ivab[ ..
~ dcaeasc in prepmd ~
(~) in aca;,ww payable, acaued
liabilliic& and .a.c:o-ued s.alariC$ acd be!lC:fits
In=aK (-""l in lcaued sdf~insurance
hw::reasc (deaease ill oompo:a.saled absc.noc.s
Net cash """'<led by (usod iD) oP'''ling adMtfCs~-~
c..h now. from Iinucing acti.ui""
~ tn..os.fcn out to othu funds
Opcr.ting tr...ten iD from ocher funds
Net cash m<M4ed by (usod iD) .""capital
IiIww:li.a -c..h now. from capital aad rcla1«1 fiuanciag
acliWics:
Acq..;,ition and <:ClZISI1'1!<ti at capital >=ts
Ikm"""'s> 1mdu copitalluscs
~lr~~~
Payment to acro"W .DI
Principal paid on eaptaIiz.ed leases
Inr:err..st: oaid OD revalllC bood.s i!Dd capita! le.ascs
Oth~naOlO . gam (loss} Co ca·
Assu:m.r~ -term~ compcm.att.d am.encc.s and
Adv;m« from G<auaI F""d
N<t ~ ~ by (W>Od in) "pilz.! related
actr~'1lles
Cash flows from iD~ adMties:
lDterc.st aDd dividcDdi on pooled inV'CStments
"Net cW provided by in ... e~ acti .. icCli
Net increase. iZI cash aDd invesunellts
Casb ad c:aU eqah'aieats, begiD..n.Wg of yeac
C115b aad c:a!1I ~ end of year
Eote~
Flomd:i
$29,842
5,9'19
1.134
(83)
2,036
~
.J2.W
(15,337)
w.m>
(15,448)
(967)
;,650
(11~
(6.271
(246
1,500
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al.Q&J
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;,414
~
lWlZ
The 30c0tn~ying notCli au: a.D mtc::gral part
of these combined fu1a.ocial stal~m~Dts.
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$(2,812)
l,21?
15 (12lj
(124
&~
--ill
..(WQ)
.J2)
--..m
(2,458)
2,262
(81)
2,527
426
~
......2l!l
......2l!l
2,856
-l.l.lJe
117,994
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To<oh
(Mc::moralu:!'um Oaly)
~it.r :&!!s;i!:;d IIM!~ Xl
1m
s.'7,03!l
7,166
1,749
(Ur (~
1,001
(410)
-.3G
.J2m
(15,157)
.Jl!!!
illMD
(17,5106)
2,Z6l
,~
(lI,1l1Ol
(256,
(6,271)
Z,281
1~
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illI.ill)
..1.!9 _..us
10,27D
.JU!ll
m.m
1m
S2B,1l93
6.3ll'
(2,473)
(524)
1,(125
4,931
~
42497
(14,998)
----W.
~
(13,386)
(553)
(233)
(~03S)
(31)
5,236
(4,955)
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CIIT OF PAW ALTO
EXPENDABLE TRUST FUNDS
COMBINED STATEMENTS OF REVENUES, EXPENDITIJRES
AND CHANGES IN FUND BALANCES
(in thousands of dollar;)
Totals
Years Ended
1UDC jQ
1.!m
Revenu.es:
lnte!estearnings $ 1
Other revenue .ill
Total revenues ..ll!
Expenditures:
Public safety-police 111
Social services
Total expenditures -1ll
Excess of revenues over expenditures J
Fund balan<es, beginning of year ..M
Fond balarn:es, end of year 594
The acrompanying Doles are an inlegral pan
of these combtned financial statements.
10
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CITY OF PALO ALTO
" NOTES TO CO:'illINED Fll'1A."ClAL STATEMENTS
;
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June 30, 1991
(in !hou"""d, of doUar,)
1. Summary of Si~ficam AocOl!ptiPI' Policies:
The accounting policies of the City of Palo Alto, California (the City), conform to
generaliy accepted accounting principle, as applies!>le to governments, The
following is a summary of the more significant policies:
GoymwumJal Entitje.s Included in the General fw:pQ~e Financial
Statements
All significant activities and orga.nLzations with which the City bas the ability to
significantly influence operations and exercise oversight respons'Dility have been
included in the City's genera! purpose financial statements. The following criteria
rege.!'dinf; manifestation of o\o'ersigbt were consid("red by the City in evruuation of
City organizations and activities:
• Financial interdependency -whether the City receives financial support or
provides financial benefit to the organization, is responsible for or has directly
or indirectly guaranteed the organization's debts,
• Authoritative appcintmelll of governing authority -wbether tile City Council
appoints Ihe organization's governing authority and maintains a significant
continuing relationship Viith the guverning authority pertaining to the public
functions of the organization.
Included within the financial reporting entity, the City, are the City of Palo Alto
Golf Course Corporation and the Palo Alto Public lmpro"ement Corporation.
Although these entities are legaUy separate from the City, the City's elected officials
have a continuing full or partial oversight responsibility and bave accountability for
fiscal matters of these other entities.
Continued
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1.
CIlY OF PALO ALTO
NOlES TO COMBINED FINA."·ClAL STATEMENTS
June 30, 1991
(in thousands of dollars)
Summary of Significant ACCQUntiCK rojjcies. continued:
City ~r PaIo Alto G<J1f Conne Corpol'1llion
The Golf Course Corpora;:;on was e.stablisbed in 19n to finance, acquire,
construct and improve a public municipal golf course and recreation facility
in the City. The golf course COllStructiOD was rompleted and the City
continues to maintain and operate the facility. Operating activities of the goif
course are included in the activities of the General Fund, while debt service
payments are recorded in the Debt Service Fund and inter.st income and
expense are recorded in the Special Reve,ue Fund.
Palo Alto Public Improvement Corpol'1llion
The Palo Alto Public Improvement Corporation (the Corporation) was
established in 1983 to finance, acquire, construct, improve and Ie .... or sell
real or personal property for the benefit of residents of the City and
surrounding areas. The Corporation has completed the improvement and
repair of the Palo Alto Civic Center. The C'.orporation is currently leasing the
improvements :0 the City for a 23-year period through June 2006. The debt
service payments for the Corporation are included in the activities of the
Debt Service Fund and interest income and expense are includcJ in the
Special Revenue Fund.
The operations of the Palo Alto Housing Corporation, Palo Alto Senior
Coordinating Council, Palo Aha Child ear. Corporation and Palo Alto Unified
School District are not part of the defined reporting entity and financial information
for these agencies is not included in the general purpose financial statements of the
City. Each of these agencies has an independently elected governing board ott,er
!ban the City Council of the City of Palo Alto and the City does nal influence their
operations significantly.
The City'5 management has made a pre1..iminary review of Governmental Accounting
Standards Board (GAS8) Statement No. 14, 'The Financial Reporting Entity', and
does no! anticipate any change to the current reporting pr.>entation.
Continued
12
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CI1Y OF PALO ALTO
NOTES TO COMBrNED FINA"C~ STATEMENTS, O:mtinued
June 30, 1991
(in thousands of dollars)
1. SUmmary of SiiTIifi.::_~..ntAr;_~Quntine Policies., continued:
8g.rl.s c;:f Pre.renlatjnn -F ur4 A ccQundnf
The basic accounting and reporting entity for toe City is a "fu..'ld: A fund is defined
as an independent fi~c.U and accounting entity \l.ith ~ self-balancing set or ;accounts
recording resources; together with aU rel~ted liabilities, obllgatio~ revellLles,
expenditures, reserves and equities, which are segregated for the pl1IJXl'e of carrying
out specific activities. or attaining certain objectives in accordance 'V.ith special
regulations, restrictions or limitations. The various funds are grouped in the general
purpose financia1 statements in this report by generic fund types within thret broad
fund categories and two account groups as follows:
GOV£R.'\'MENTAL FUNDS
Ge.y:mI Fund: The General Fend is the general operating fund of the City .
It is used to account for ail financial resources committed to finandng the
services that the City performs for its citizens. except tb.ose required to be
accounted for in anothe r fund.
Spedal Beyr"", Funds: Special Revenue Funds are used to account for the
proceeds of specific rel/enue sources (ott.er than agency funds or major
capital projeru) that are legaUy restricted to expenditures for specified
purposes or for which separate accounting is required by administrative
action.
Debt Service~-, Debt Ser\o;ce Funds are used 10 account for the
accumulation of resources for, and the payment of. genera! and special
assessment long-term obligation principal and interest, other than obligations
payable from Proprietary Funds.
Capjtal Prqjects Fund: The Capital Projects Fund is used to account for
financial resources to be used for the acquisition or construction of major
capital facilities (otber than those financod by Proprietary Funds and Special
Revenue Funds).
Continued
13
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~1 , , , CITY OF PALO ALTO
NOTES TO COMBINED FlNA.1IiClAL STATEMENlS, Continued
June 30, 1991
(in thousands of doll.rs)
1. Summary of SjiDifjcani Accollntfnj PoIjdes., continued:
Bqsi.t qf Prr:wIlqfiQ" -Fwrd A"ounring. continued:
PROPRIETARY FUNDS
ErrI"1J2'ig; Fund!: Enterprise Funds are used to .ccaunt for operations (a)
that arc financed and operated in a m~LDer similar to private business
enterprises -where tlle intent of the g(T~erning body is Ib.t ule costs
(expenses. including depreciation 1 of providing goods or services to the
general public on a continuing basis are financed or recorded prim.mly
through user charges; and (b) w~ere the governing body has decided that
periOOic determination of revenues earned, expenses incurred. and/or Det
income is appropriate for capital maintenance, public pelicy, management
control. accountability or other purposes.
/nIm!!Jl Seryjc. Fwul:i: The Internal Service Funds are used 10 .C«lUll! for
the financing of goods or services provided by one department or agency to
other departments or agencies of the City on a cost-reimbursement basis.
FlDUClARY FUNDS
Arency fWI: Agency' Funru are used to .ccount for as.;e(S held by the Oty
in a trustee capacity or as an agent for individ u.a1s., private organizations,
o!her governments, and/or other funds. Agency Funds are custodial in
nature and do not involve measurement of results of operations.
&p!:n4gbk rrlm Funds: Expendable Trust Funds are funds for which
principal and interest !Day be expended in the course of their designated
operations. Tbey are accounted for in essentially the same manner as
GoYeromenlal Funds.
Contioued
14
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CITY OF PAW ALTO
NOTES TO COMBL"fED HNA.,",ClAL STATEMEI\TS, Continued
June 30, 1991
(in thousands of dolla.'"S)
1. Summary of Si~ficant Acroyntin~ Poljd~. continued:
BWLs Q(Presenlation ~ FUndAccQU!1[fug, continued:
ACCOUNT GROUPS
Gern:roJ FiIedA.ue1s Account G'rswp: ThIs account group is used to maintain
control and COSl infonnation on property, plant and equipment owned by tbe
City, other than that of the Proprietary Funds.
Grnero1 Long·Tmn Debt Account Group: Thi.o;; account group accounts for
long-term debt not recorded in the Agency or Proprietary Funds.
BW of AccQunlin¥
The modified accrual basis oj accounting is followed by the Governmental,
Expendable Trust and Agen<1' Funds, Under the modified accrual basis of
accounting. revenues are recorded when suscepuble to accrua4 Le .. both measurable
and avanable. A\'-al1able means collectible within the current period or soon enough
thereafter 10 be used to pay liabilities of the current period. Expenditures are
recognized when the liability is incurred., except for interest on long-term debt which
is recorded as due.
In applying the ·susceptible to accrual" concept to intergovernmental revenues (grant
revenues). the legal and contractual requirements of the numerous individual
programs are used 2.5 guidance. There are, however, essentiaJiy two types or these
revenues.. In one, monies must be expended on the specific purpose or project
before any amounts will be paid to the City; therefore, revenues are recognized
based upon the expenditures recorded. In the otber, monies are virtually
unrestricted as 10 purpose of expenditure and essentiaHy irrevocable. These
resources are reflected as revenues at the time of receipt.
Continued
15
. ----~---
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CITY OF PAW ALTO
NOTES TO COMBLNED FlNANCIAL STATEMEt>P.;, Continued
June 30, 1991
(i" tho=d> of dollars)
1. SummaJ)' of Signjfkan! ACCQunti0i PQlicies.. continued:
Baris pfArootmtj"f, continued:
Ucenses and perrruts.. state gas tax. charges for services, forfeitures and
miscellaneous revenues are recognized as revenues when received because they are
gencrolly nOI measurable until actually received. Property taxes, sale, taxes, motor
vehicle fees, fines and earned grant entitlements are accmed OD the modified
accrual basis (when they are measurable and available).
AIl proprietal)' funds are accounted for using the accrual basis of accounting.
Revenues are recognized when earned. and expenses are reco,pized when incurred.
Unbilled ut::ility revenues and related expenses are accrued at year-end using a
proration of the number of billing day, applicable to the current year.
Interest on bonds. proceeds of which aTe used in finandng the construction of
certain assets, is capitalized during tbe construction period net of interest on the
investment of unexpended bond proceed>.
Appropriated Budget and Budgetary Control
The Ci!; Council is required to adopt a budget resolution on or about July 1
of each f15Ca.l year for the Gt-neral, Special Revenue, Enterprise. L"HernaI
Service and Capital Proje<ts Funds. These budgets are adopted and
pre5eDted (or reporting purposes on a basis consistent with generally a<:~epted
accounting principles.
The level of appropriated budgetary control., the departrnent/progJ"aIn, and
major object or expenditure. The City Manager may author'i7.e transfers of
appropriations ",ithin a departmental appropriation. Supplemental
appropriations during the year must 1>< approved by the City Council by DO
less than a two-th[rds vote. Unexpended or unencumbered appropriations are
appropriated to fund balances, except for capital projects wbicb are carried
forward unul such time as the project is completed or abandoned. A capital
projp.ct is deemed abandoned if t'Wo years pass without any expenditure from
the appropriation.
Cofitinued
16
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CIIT OF PALO ALTO
NOTES TO COMBlNLD F1NANCIAL STATEMEl>TS, Continued
Jor,e 30, 1991
(in thousand> of dollars)
1. SYmmary of Signlficant Accoyntini Policies. continued:
Ba.sis QIAccountil1g~ continued:
Cash and Investments
The City maintains • casb and investment pool that is available for use by all
funds except the Agency Funds. The balance in the pooled cash accounts is
available to meet current operating requirements and any =" in excess of
current req!.lirements .is invested in various secur.ties. For purposes of the
statement of cash flow>, the Proprietary Funds CDmider all pooled caso and
investments to be cash equivalent.\.
IDvestmen1S
Investments consist mainly of government securitief.. and are stated at the
lower of aggregate coM or market value .
Receivables
Property taxes receivable for the goverrunentai fund types which have been
coU","ted within sixty days following year-end are considered measurable and
avrulable and are recognized as. revenues in the funds .
Receivables for federal and state grants and federal entitlements are recorded
as revenue in aU fund types 2.5 authorized reimbursz.ble expenditures are
made.
Stores Inventories
Materials and suppbes are held for consumption and are reoorded at tlle
lower of average cost (whkh approximates first-in, first-out basis) or market.
The consumption metbod is used to account for im"entorics. Under the
consumption method, inventories are recorded as. expenditures. when the
inventory items are used.
Continued
17
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CI1Y OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATH-IENTS. Continued
Iune 30. 1991
(in thousands of dollars)
1. Summary Of Sjgnjficanl A~ting Policies., continued:
Bagt qfACCQuntinf. continued:
Property, Pla~1 and Equipment
Property. plant and equipment in the General Fixed Assets Account Group
are stated at historieal cos~ or eslimated historieal cost if actUal historical
cost is not available. Property. plant and equipment acquisitions are charged
to expenditures in the governmental fund types as purchased and capitalized
in the General Fixed Assets Account Group. Maintenance and r<pairs of
property, plant and equipment are charged to expenditures in the
governmental fund types as incurred and not capitalized. Expendirures for
public domain (infrastructure) general fixed assets such as roads, bridge
construction, sidewalks, curbs, gutters and drainage systems are not
capitalized as property. plant and equipmenL Upon disposal of property.
plant and equipment, the historieal cost or ""timated historical cost is
removed from the General Fixed Assets Account Group and any proceeds
from sales are generally recorded as revonue in the funds origi nally acquiring
the assets. Depreciation is not computed on the assets capitalized in the
gO'iernmenw fund types.
Pro]>'!rty. plant and equipment in the Proprietary Fund Types is capitalized
at hls10rical cost or estimated historical CDS! when historical cost is not
availabIe~ or tne estimated fair market value at the time received in the case
of gifts or projects constructed by othen; and accepted for ownership and
maintenance by the City_ Maliltenance and repain; are expensed as incurred.
Depreciation is computed and charged as an expense a.gainst operdtions using
the straight-line method over the estimated useful lives of proprietary fund
property. plant anI! equipment as follo""
• Vehicles and beavy equipment. 3 to 10 years
• Building and structures -25 to 60 yean;
.. Machinery and equipment -10 to SO years
• Transmission and distriliutioD equipment -10 to 100 years
Continued
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CIlY OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMEl'o'TS, Continued
June 30, 199 j
(in thousands of dollars)
Summary of Sj2njficaot Acrn!!ntin~ Policies., wDtiDued:
Basis of AccQunrini'. continued:
Special Assessments
In accordance with Governmental Acwunting Standards Board (GASB)
Statement No.6, "Accounting and Fillancial Reporting for Special
Assc-ss.men~· t.he construction of public improvements and toe provision of
>ervices financed by special assessments are reported in the f.md type that
best reflects the nature of the tra.-,sac!ion.
Assessments are recognized as receivables a.t the time property OW'Dcrs are
assessed for prope!"ty improvements. Current assessments receivable expected
to be collected soon enough after year~nd to meet liabilities of the current
period are considered measurable and available and are generally recognized
as revenues. All other assessmel!ts receivable ($8,419 at lune 30, 1991) are
offset by a deferred revenue account. In the event of default by the property
owners for certain districts, the City is obligated to cover the shortfall in
order to make the debt payment. Those districts created after the passage
of Proposition 13 may have their own reserves whlch would be drawn on in
case of default by property owners.
Compensated Absences
Vacation and sick pay for all City employees is accrued and paid in the
Enterprise Fund and the General Benefits and Insurance Internal Service
Fund (see Note 2). The General Benefits and Ins"rarce Internal Service
Fund is reimbu=d through payroll charges to all other fucds. Earned but
unpaid vacation and overtime compensation pay is recognized as an ~nse
or expenditure in the proprieta.ty funds and governmental funds when earned
because the City bas provided financial resources for the fuil amount through
its budgetary process. Accumulated vacation and overtime compensation pa)'
amounted to approximately $3,955 for all funds at lune 30, 1991. Vested
accumulated sick pay is pald in the event of termination due to disability and
Continued
19
CITY OF PALO ALTO
NOlES TO COMBINED FINANCIAL STATEMENTS, Continu~d
lune 30, 1991
(in tIlousands of dollars)
1. S,1mrnaN of Significant Al'COuntin~ Policies.. continued:
Basis W' ACCQII1IIiIJj, continue d:
Compensated Absences, continued:
under certain conditions specified in employment agreements primarily
restricted to individuals with fifteen or more years of continuous seJ"\oice. An
accrual of approximately $2,792 at lune 30, 1991 for ves"d accumulated sick
pay is included in accrued liabilities of the En~rprise Funds and the Internal
Sen>ice Funds. r-io accrual is made for Donvesting accumulated sick pay c!
employees with less than fifteen years of continuous service.
SelrInsnrance Program.
The activities of the City's self insurance programs are recorded in the
Enterprise and Internal Service Funds (see Note 2).
Long-Tenn Deb!
Unmatured long-term debt directly related to and expected to be paid from
Proprietary Funds is included in such funds. All other unmatured long-term
debt is recorded in the General Long-Term Debt Account Group.
Bond discount costs resulting from revenue bond issues are amortized over the
related debt repayment period and approximate tile interest method of
amortization. Unamortized bond discount costs are offse~ against bonds
payable.
Contrl bnted CapItal
C.ontnbuted capital is an equity account in the Proprietary Funds which shows
the amount of permanent fund capital contnbuted to the fund from general
government revenues and rewurces or, in the case of Enterprise Funds., by
subdivision developers and builders.
Continued
20
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CIT\' OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollars)
Sl.lI!1m.<ll):..of SiiThficant Acs:ountLnK Poljcies, cuntinued:
Bads at Accountinr. continued:
Reserved Fu.nd Balanees
The reserved fund baJances for Governmental Funds represent the amount that
has been legally identified for specific purp<:J<es.
Encumbrances
Commitments for expenditures in the GovernmentaJ Funds are recorded as
reserves of fund baiances, whice ,odicates that a portion of fund balance has
been segregated for expenditures upon vendor performance.
Fund Balances Designated for Subsequent Years' Expenditu ....
Tentative plans for utilization of fund balances in future periO<h are Tccorded
as designation of fund balan=. Planned expenditures include uncompleted
construction contracts and other commitments for which fund balances have not
been appropriated or specificaily segregated.
Property Taxes
Property taxes attach as an enforceable lien as DC March 1. Taxes are levied on
July 1 and are payable in two installments. The first installment is due
November 1 and [s delinquent if not paid by December 10. The second
installment [s due February I and is delinquent if not paid by April 10. The
County of Santa Oara bills and collects property wes and remits them to the
City in insta11menl~ during the year. City propert)' tax revenues are recognized
when levied 10 the extent tllat th~)' result in a current receivable, by having
been collected by the end of the current fiscal year or within 60 days thereafter.
Continued
21
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CTIY OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMEl'o'TS. Continued
June JO, 1991
(in thousands of doll",,)
1. Summaty of Sivnificant AccollDtjDIl Po1ides. continued:
Bwir 9fACCQWIfinr, continued;
Property Taxes, continued:
General property taxes are based either on a flat 1% rate applied to the 1975-
76 fun value of the property or on 1% or the sale, price 0' sales and
con~truction which occurred after the 1975-76 valuation. Asse=d values on
property (exclusive of increases related to sales and construction) can rise at a
maximum of 2 % per year.
Total CoI1lDlJl5 on GenEral Purpose FilLlUlcial Stalements
The totals (memorandum only) columns on the general purpose financial
statelm:nts represent the aggrC!!gate of the columnar statements by fund type and
.=unt group; they do not represent consolidated financial information ond
interfund transactions have Dot been eliminated from the totals (memorandum
only) columns. Data in the total columns are presented only to facililate
financial analysis and do not present financial position, results of operations, or
cash flows in conformity with generally accepted a=untiog principles.
Comparative Dati
Camparati"e total data for the prior year has been presented in the general
purpose financia! stateme(lts in order to provide an understanding of cbanges
in the City's financial position and operations. However, comparative data (i.e ..
presentations of prior year totals by fund) bave not been presented in all
statements because their inclusion would make certain statements unduly
complex and difficult to read. Certain amounts from the prior year's financial
statements have been reclassified to confonn to the current year presentation.
Continued
22
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-.
CI1Y OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMEl'.'TS, Olnt;nucd
J"ne 30, 1991
(in thous:mds of dollars)
2. Oanae jn Basjs of ACCQ!lntln~:
In fIscal y~ar 1990, in accordance with GovernmentaJ Accounting Standards Board
(GAS8) Statement No. 10, "Accounting and Financial Reporting for Risk Financing
and Related Insura."1ce hsues.; the City chose to record activities relating to seM
iTlSurance programs in an [ntema) Service Fund. As required by GASB Statement
No. l(). the noncurrent portion of the accrued self L'lSurance balance ($2,880)
included in the General Long-Term Debt Account Group. at J"ly 1, 1989, the date
of implementation., '\'."E.S charged to the opening retained earnings or the Internal
Service Fund. The General Fund's current liabilities re~ated to the self insurance
programs of $1,511 at July 1. 1989 were also transferred to the Internal Service
Fund.
In fiscal year 1990. the Ci ty abo chose to record that portion of accrued vacation
and s,jdi: pay, which had pre\liow:ly been recorded in the General Fund and General
Long-Term Debt Account Group, in tbe General Benefits and Insurance Internal
Service Fund to cenLrali2:e these activities in one fund On July 1, 1989, the current
portion of the accrued compensated absences balance ($2,074) included in the
General Long-Tenn Debt AcCQur., Group and the General Fund's current liabilities
rela.ting 10 accrued compensated absences of $2,894 were transferred to the Internal
Service Fund.
As a result of these changes. a residual equity transfer of $5,190 was made during
fiscal year 1990 from !.ie General Fund to the Internal Service Fund. The Internal
Service Fond assumed $4,955 in General Fund and General Long-Term Debt
Account Group long-term liabilities related to self-insurance and compensated
aOsences at the date of this cbange.
In fiscal year 199i, t'NO new funds were added to Internal Service Funds. The
Vebicle Maintenance Fund accounts for cent:aI maintenance service on all Citv
o'NOed vehicles. The Mlil1ing Services Fund provides centra] postage and maHing
services to City depanmeats. Both activities were previously accounted for in the
General Fund. In creating these funds, all of the general !"l.Xed assets associated 'With
their operations were reclassified from the General Fixed A..'\Sets Account Group to
the Internal Service Funds. Restatement was not considered necessary due to the
immateriality or the amounts.
Olntinued
23
-
CI'IY OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 3D, 1991
(m~o~dsofdoll~)
2. Chana' in Basis pI AccoupljDi tontinued~
In prior years, the City remrded lOOl15 made to Clttzens under the Housing
Improvement Program as e"PCnditures of the Special Revenue Fund. The
suhf.equenl collection on these loans was recorded as revenue of the Special
Rcvcnue Fund. In the current year, the City cboose to record all outstanding loans
($1,193) as not"" receivable and. at the da~ of cbange, recorded a related increase
to the Speeial Revenue Fund fund balance accounl Future collection on these
notes will serve to reduce the individual note balances and associated interest
income will be recognized.
3. OW! Bod Inyestmepts:
As a cbaner city, the City manage.o; its pooJed cash and investments under the
prudent investor rule. Under the City's investment policy, investments are to be
mad. wi~ judgment and care, under the circumstances ~en prevailing, which
investors wi~ prudenoe, discretion, and intelligence would make considering the
probable income as well as safety of ~eir capital.
The City reviews and amends its investment policy on an annual basis, 'Ibe City's
investment poliey was last amended on June 24, 1991. This poliey authorizes the
City to invest in obligations of the U.s. Treasury and U.s. Agencies, certificates of
Deposit and Negotiab", certifica~ of Deposit, Bankers' Acceptance Notes,
Comm •. rcial Paper, the State Treasurer's Local Agency Investment Fund (J.AIF),
Repurchase Agreements, City of Palo Alto Bonds, Money Merket Acco·.mts and
Mutual Funds. City management is Dot aware of any violations cf the City's
invesiment policy during the year.
The City has contracted with and maintains demand deposit accounts in Security
Pacific National Bank. A written contract with ~e City's safekeeping agent, Bank
of California., outlines the basic respoIlSlbilities with regard to delivery and receipt
of securities.
State statutes require collate!'.! for all public ageney deposits and certificates of
deposit not covered by federal deposit insurance. C.,rtificates of deposit (except for
negotiable certificates) are considered deposits and Dot investments for the purposes
of ~ese statutes.
Continued
24
-
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! -,
~ I
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... I" ..
~ -I
-I
i
-
/" , -
..
~
! ,
1:. I
CTIY OF PAW ALTO
NOTES TO COMBINED FlNA'lOAL STATEMENTS, Continued
June 3D, 1991
(in thousands of dollars)
3. Cash and Inyestments-continued:
Cash Held In Trust and With Fiscal A~nt
Included in the cash and investment balance at June 3D, 1991 are amoun~ held with
a fiscal agent and held in trust of $657 and $3,022, respectively. Amounts beld with
the fiscal agent represent principal and interest payments on outstanding bon d
issues, which are due July 2nd of the foDowing fiscal year. However, trust
agreements require the City to pay t1:ese amounts in June of the preceding fiscal
year to allow for potential delays in actual payment to bondholders. These amounL.c;
are nol invested and do Dot earn interest as tbey are situated in holding accounts for
a short period of time before actual bond payments are made. Amounts held in
trust represent deposits in bond reserve accounts with the bond trustees (Bank of
America NT&SA auJ Bankers Trust Company of California, NA). The amounts,
included in trust, which are to be used to pay lh. final bond principal and intere"
payments amount to $3,022. These monies are governed by the Li"ustee agreements
between the City anj the tr.Jstee which state how the monies in the bond reserve
accounts are to be invested. Specifically, the City has granted the trustee
authorization to invest these monies in instruments essentially comisting of U.S.
Treasury and Agency obUgations and nonnegotiable certificates of deposit. AS of
June 3{), 1991, all cash •. nd cash equivalents held in trust were in compliance with
the respective trust agreements. At June 3(), 1991, tot~ trustee holdings were
recorded at cost, which approximated market '.,.&Jue.
At June 30, 1991, certificates of deposit were placed in four financial institutions and
were carried at cost. All d::oposits are covered by federal depository insurance,
and/or collateralized with securities held in a collateral pool for Ille entire balance,
in conformance with state law.
The June 30, 1991 market value infonnation presented her:in :s based on quotes
obtained as of June 30, 1991. It is presented to reflect the market value of the
portfolio if the City were to liqu[date the securities on that date.
Conttnued
25
1-·
CITY OF PALO ALTO
NOTES TO COMBINED F1NANCiAL STATEMENTS, Continued
June 3D, 1991
(in thousands of do!la.;)
3. Cash and Invegrnent~ continued:
Investments, continued:
In accordance .. ith GASB Statement No.3, "Deposits with Financial Institutions,
Investments (including Repurchag Agreements), and Reverse Repurchase
Agreements,' the City's investments are categoriud to give an indication of the level
of risk assumed by the City as of June 30, 1991. Category I includes investments
that are insured or registered for which the securities are held by the City or its
custodial agent in the City's name. Category II includes investments that are
uninsured and unregistered for which tbe securities are held by the countetparty's
trust depa.1:I!Ient or agent in the City's name. Category III includes investments that
are uninsured and unregIstered for which the securities are held by the broker or
dealer or by its trust department or agent but nol in the City'S name.
Cash and investments alJune 30, 1991 comprise:
Market Canying
Weighted
A\IC.lagc:
bue...,
~ ~ Amoup! Category)
Cash:
Cash on hand
Held u. tr.al and with FIS<3l AgeIIr
DeposilS:
Certificates d dcposjl
InvestmenU:
City of Polo Aho boods
U.s. Trea:5Ury obtigBtions
U S. ~"CY ob[;gations
Local AgeIlC')' fIniestmcm Fund
Mutual Fund
Deferred compensal~on (Note 1)
Total cub and i.z;,vestmcnts
Continued
26
9.64%
8.88%
832%
S 705 S 7IJ5
-l.lm ~
~ -~
....l!l...:!>.l ...1ll..l!lQ
~5 55 S 55
55,086 54,603 54,603
~ ....J2J21 ~
~ 944<5 ~
lO,{X)J lO,oo:J
100 iOO
...12Jl!.l ....I.W!I
~ ~
<·~":·Mzf._
..
f ' W
[
-
-
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...
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..;
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------........:-----"------~-------------
CITY OF PALO ALTO
NOTES TO COMBINED F1NANClAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollan)
3. Cash and Investments. continued:
The deferred compensation fund acts solely to invest funds at the discretion of
participating employees. Sucb investments are not subject to statutes relating to City
investments .
4. PTf~rty PJant and Equipment:
Property, plant and equipment at JUDe 30, 1991, by major classes for the General
Fixed Assets AcwuDt Group, the Enterprise Funds, and the lntemal Service Fund
comprise:
Buil<fings
Land and and Accumuh.ted
1m provemenlli ~ EQYipmen l Depreclarioo Tc<al
Generlll Fru:d As..~s
Acrount Group S57,062 $34,394 $ 10,275 $101,731
EDIe-rprise Fuuds 1,S4IJ 2,91\l 229,143 s(78,08S) 155,568 _mal Sornce Fund ~ ~ ~
Balances,. lune 30, 1991 ~ ~ ~ S(83.W) ~
Included in equipment at June 30, 1991 for the Enterprise Funds are approximately
$22,893 in construction-in-pragress. Additionally, included at June 30, 1991 in land
and improvements and equipment are assets under capital leases amounting to
$9,972 and $1,722, respectively, with 3crumulated amortization of $35.
The cbange, in the General Fixed Assets Account Group for the fiscal year ended
June 30, 1991 are a.; foDow.:
BWI<fings
Land and and
]1Il~QY~mCDU SIOISlllrg f~lli=':lt IllliI!
Bal==, luly 1, 19<0 $50,4% $34,016 $ 8,170 $ 93,2S2
Expenditura; from Geceral Fond 6"~ 318 2,llJ6 9,15(]
R~elll~Dts --1lU --1ll!
BalaDces, June 30, 1991 ~ ~ 1l!l.m ~
Continued
27
\
! . .., ...
,,: ..., , -,
'i
..I
~
-,
CITY OF PAW ALTO
NOTES TO COI.'..BlNED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousand; of dollars)
4. PrcmertY, Plant and Equipment. continued:
The cities of Palo Alto, Mountain View and Los Altos (the Cities) participate jointly
in the cost of maintaining and operating the Ci~f of Palo Alto Regional Water
Quality Control Plant and related system (the Plant). The City is the owner and
administrator of the Plant which provides joint operations for the transmission,
treatment and disposal of sewage to the Cities. The cities of Mountain View and
Los Altos are entitled to use a portion of the capacity 0 1 the plant for a specified
period of time. Each city has the right to rent unused capacity from/to the other
cities. The expenses of operations and maintenance are paid quarterly by eacb city
based on their pro rata share of treatment costs. Additionally, joint system revenues
are shared by the Cities in the same ratio as expenses are paid. The amended
agreement has a term of fifty years beginning from the original signing in October
1968, but may be terminated by any party upon ten years' notice to the oth« parties.
A11 sewage treatment property, plant and equipment are included in the Wastewater
Fund's property, plant and equipment balance at June 3{J, 1991. If the Clty initiates
the tennination of the contracts, it is required to pay the other cities their
unamortized contribution towards the property, plant and equipment.
Continued
28
'i.:
--,-'--._--_ ..• _---_._, .... -....
. />
CI1Y OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousa~ds of dollars)
S. I c0i'-Teun Uabilitjes ilnd Debt:
A summaI)' of the changes in lang-term liabilities and debt, net of dis<:Gunts, where
applicable, for the year ended June 30, 1991 !OUOM:
General obligation bonds
Utility revenue bonds
Certificates of panicipation
Special assessment debt with governmental
commitment
Capital Iea<;e obligations:
Tetman Scbool
Telepbone equipment
Los Altos Treatment Plant site
Vehicle equipment
Copier equipment
Total capital lease obligations
Advances to IfraID other funds:
Rent liability due 10 General Fund from
the Enterprise Fund -Waler Fund
Advance due to General Fund from the
Enterprise Fund· Storm Drain Fund
Advance due to General Fund from the
Special Re,,.nue Fund -Gas Tax Fund
Total advances to/from other funds
Continued
29
Balance
July 1 •
..l22iL
$1,300
14,797
5,275
9,136
4.,3%
m
271
1,155
941
r ...
-,
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I Current ... Mat..Irittes Balance Future -Additional and June 30, Interest ,
OpJigarious Reti«<meDts --122L ~ ~
..., $ 75 $1.225 $ 507
$9,650 12.167 12,280 6,616
ISO 5,125 4,371
I 487 8,649 5,305 ~ ., 395 3,951 1,743
...i 181 96 3
256 15 1 .., ~ 204 2,142 428 ,
.J ---1.U ~ --...ill 6
..., ..kill ..l.OO1 ~~ j .. • 1,155
~ 1,320
1
94 2.167
~ ~
1 ...L82J.l ~'!. ..2&i1 •
~
~
'"'1
Continued
30
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. -/
,-----.--..:.---.----~.--. --:.....~-----
CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, ContinJled
June 30, 1991
(in thousands of dollars)
l-£!n~-I~an 1iilbili:t1~5 and D~bt. continued:
A sWIlIllal)' of bonds payable and certificates of .,articipation, net of unamortized
disc<lunts, and capital lease obligatio"" at June 30, 1991 by individual issue folio""
Due Effective
Serially Interest Amounts
......IlL Rates Payable
General Obligation Bonds;
Golf course bonds 2003 5.00%-6.00% ~
Special Assess:nent Debt with
Gover.:llllental Comm.itment:
Utility street improvement and
parking district bonds 2008 4.500/0-10.95% ....B.M2
Utility Revenue Bonds:
19&3 A Series 1999 6.250/0-8.25% 3,140
1990 A Series 2006 5.70%· 6.80% 9,280
less: Unamortized discount ----LHQ)
....I.U8Q
Certifica~ of Participation:
Civic Center improvement
certificates. 2005 6.500/0-9.50% ~
Total Bonds and Certificates $27.279
Capital Lease Obligations:
Terman Sebool 2000 Variable 3,951
Telephone equipment 1992 6.29% 96
Los Altos Treatment Plant site 1992 9.25% 15
Vehicle equipment 1995 5.70%-6.10% 2,142
C<>pier equipment 1996 1.5% --.12i1
Total Capi'al Lease Obligations $6324
C.ontinued
31
---. --------.....,,;::-
CI1Y OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMEt'oolS, Continued
June 3D, 1991
(in thousancb of doUars)
5. Inof-Tenn Yabllities and Debt, conthmed:
The annual requirements to amort.ize all bonds, certificates of pzrJcipation and
capital leases outstanding as of June 30, 1991 are as follows:
YejU Endini' June 30
1992
1993
1994
1995
1996
Thereafter
Total principal and interest
Less:
Amounts representing interest
Unamortized dis.:ount
Balances at June 30, 1991
General
Obhgation
Bonds
$ 144
140
136
132
153
..l.On
1,732
(507)
Future maturities of the long-term est:mated liabilities fur se!f insurance claims and
accrued compensated absences are not presented as it is nol practical to determine
the specific year for payment.
C-Ontinued
32
" " .. ,1"
c
c
J
-,
j
..,
J
., ,
~
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..,
...l
Spec'.aI
As..~ment
Debt
S 987
977
964
862
855
~
13,954
(5,305)
~
Utility
Revenue
Bonds
S 1,520
1,519
1,518
1,512
1,510
...1.L&Z
19,036
(6,616)
--U±Q)
$12,280
Certificates Capital
of uase
Participation Ql2liia!i=
S 635 $1,420
640 1.273
638 1,242
64() 1,210
644 904
.u22 .ld2i
9,496 8,505
(4,371) (2,181)
~ ~
Continued
33
CfIY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, o,ntinued
June 30, 1991
(in thousands of dollaro)
5. lPn8~Term Uabilitjes and Debt. continued:
On August 21, 1990, the City issued $9,650 in Utility Revenue Refunding Bonds
1990 Series A with an average interest rate of 6.425 % 10 advance refund $ j 1,200 of
UtHity Revenue Boods 1985 Series A with variable interest rates. Th. eet proceeds
of $9,428 (after payment of 5222 in issuance ""ts) plus an additional $1,752 from
the prior bonds debt service reserve were used to advance refund the bonds. As a
resul~ the 1985 Utility Revenue bonds are considered 10 be defeased and the
liability for those bonds bas been removed from the geoerallong-term debt account
group.
At the time of issuance of the 1990 Series A bonds, the prevaili.."lg interest rate on
tile prior bonds was 5.30%. Based 00 that rate, the City realized an economic 1=
(difference between the present values of the old and DeW debt service payments of
$147). The City refunded the bonds in order 10 reduce debl service payments and
to lock in the interest rate at tile 6.425% fixed rate.
In December 1989, the City defeased certain special assessment boods by placing the
proceeds of new bonds in an irrevocable WJSt with an escrow agent to provide for
all future debt service payments on the prior bonds. Acccrdiogly, the trust account
assets and the liability for tile defeased bonds are not included in the City's financial
statements. Al June 30, 1991, the outstanding balance on these defeased bonds
totaled $4,660.
Principal and iI:lerest on general obligation golf course bonds are paid from lease
revenues received by the Palo Alto Golf Course Corporation from the City.
Principal and interest on special assessment debt Ywith governmental commitment arc
paid first from assessments to benefitted properties and, second, for districts ",thou!
their own reserve funds, from general tax revenues. Where reser .... e funds are d ra""'D
upon, reimbursement would be made in order to maintain the required re!Oerve
amount
Continued
34
~
~:i
"1 -
-:
~
.,
1
CITY OF PALO ALTO
NOTES TO co~mINED FlNANCIAL STATEMENTS. Continued
June 30, 1991
(in thousands of dollars)
s. ] DUi-Term IiabjJjp¢$ and {)ebt. contiouw:
Principa! and interest on certificates of participation are paid from ]ea..'\.e revenue
received by the Palo Alto Public Improvement Corporation from the City. Certain
bonds are calliible at various prices at specified times prior to maturity.
Principal and interest on 2li revenue bonds are payable frOID the net revenues of the
electric, gas. water and wastewater funds. Revenues of the Storm Drain Fund are
also obligated for the 1990 Seri .. A Bonds. The revenue bonds are collateralized
by a lien OV~1 the Det revenues of the enterprise funds. Variable interest rates of
495% -5.65% were paid during iiscal 1991 on the 19&5 Series A bonds prior to the
dcfcasement. Future in:erest payments are based on average interest rates of 7.4%
ror the 1983 Series A; r.nd 6.425% for the 1990 Se1ies A.
Variable interest rate for the Terman School site is based on lessor's investment
ponfolio; the rate at June 30, 1991 was 8.9%. Future interest payments are based
OD • rate of 8% .
Continued
35
CI1Y OF PALO ALTO
NOTES TO COMBINED FINANCtAL STATEMENTS, Continued
June 30, 1991
(in thousand, of dollars)
s. Lon~~Tcrm Uabilities and Debt. continued:
Long-term liabilities as of June 30, 1991 are callable on the follov.ing terms and
conditior.s:
Inceres:: WtlaI
hl<L ClDnilt~
General obligaLicn bond&.:
Golf eo""" bonds kwed:
03/01/18 5.00-<>.00 3il/8if.l )
R.e'Ytltut boOOs:.
R~ 'OODds i.5.£ued:
06/01/83 6.25-8.25 7/1/93'"
r:J;/2Ij91 5.~.80 6/1/01'"
Special ~'iSmen1 bonds:.
f1')/fJ2/69 6.90 1/2/71'"
0'0/22/68 5..lO.Q.00 7/2/Tf"
0'0/22/68 5.38400 7/2(n<"
U1/02/75 7.00.7.50 7(2/PS-"
05/02/77 6.00 None
06/02/77 5.40-7.75 7/2/~l
rJ5/02fi1j 725-9.50 1/2/9<1"
U/02j82 10.95 1fl/83~1
O3ptJ%1 6.10-9..2S 9/2/96'"
12/ISj89 5.75-<;.90 9iljrxP
c.rtm<a!es of panldpotimlls.=d:
lO/Ol/lG 6»9.50 10jlj93'"
('l) ~~ i.a imcnot IIoW'lotrbl order d ::m.turiry ar: par pllU .. prtmill.lll ol..2S% foe: ad,..:=
frco ~ioa to maturity 48:le.
(::; CaIWbk ia invenc IIwncricIIJ CTlkr 01 matv.'ity at pal'".
{lJ c.nablc: ill lIumeric:1l aroer.t iQS% of p.r,
M c.an..ble iii ~ numeriQI onkr (J/ INhiriry at par P!1I5 S%., plOII..2S~ f(k ~ ~ frotil
I'CIkmp6oG to _t~ril! dille..
($) c.an.wc. ill ~rK alllDC:rio:&! 'OT'Ckr 01 ~ty III par pllII & Pftmiwtl 0/ 2% bc:pnninl oc.
the uuw an ~ TlK!an priee Oedinc:a ~\ltt.1U l(l UK-~...w u.te..
(II) ean.t>1£ ill .mowtta IlOl ;.::a tlwI S2C aI: par pI~ • p1"ClIUlIlII 01'1% t>cpnnin:; oa the initill
tall 4alL Tbc eaIl price dcdmc:I. JUbte,qUC4C to tIM: iDil.i&1 iSate.
C7i CalI&bk ill ~rK cWlCritl.! crwkr of maNnly at;-t pllU" P!"emiwn ol:U~ t>e~ oa
me muaJ
an GalL "I'M taIl ~ ~ ~lOUio1 u> *,..e 'mit .. ! ~~
[JJ Callable. in itM::ne lI~riW ttnkr d IUnniry I' par plY5 l premillm 013% bcp'lI1illl .Q.II
!lie initial cafI d;,ot~. The GlD p:-ioe 6«:fuJe5 .... bkqut:Zl.l to tbz: inili.al d.lte
Continued
36
,
.'
en r OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollar,)
6. Penson Plan:
PJan Descriplion:
The City contribute. to me Caliiornia Public Employees' Retirement System
(PERS), an agent multiple-employer public employee retirement system that
acts as a common investment and administrative agent for participating public
entities within the State of California The covered payroll for employees
participating in the System and the total pa}TOU for the year ended June 30.
1991 was $39,36\ and S43,613, '''pectively.
All full-time and part-time benefitted City employees are eligible to participate
in PERS. Par_-time non-benefitted hourly employees do not participate in
PERS. Benefits vest after five years of service. City employees who retire at
or after age fifty ""th five years of credited service are entitled to an annual
retirement benefit, payable monthly for life, in an amount L.iat varies from 2
percent at age fifty to a maximum of 2.7 percent at ages fifty-five to sixty of the
single highest year's salary for safety employees (in an amount that varies from
1.092 percent at age fifty to a maximum of 2.418 percent at age sixty-three of
the single highest year's salary for non-safety employees) for each year of
credited service. PERS also provides death and survivor's benefits. These
benefit provisions and all other requirements rue established by State st~tute
and City ordinance.
Employee and Employer Coiltribution ObIigalion.:i:
The City makes both the employee and employer contn1mtions. The rates are
set by statJle and therefore remain unchanged from year to year. The present
employee contribution rates are:
Category
Local miscellaneous members
Local safety me",be"
Continued
37
"'-:------...,--------.. ~
Member Rates as a
~<)ge of Wages
7%
9%
I
!
!
----......
CITY OF PAW ALTO
NOTES TO COMBINED FlNANGlAL STATEMENTS, Continued
June 30, 1991
(in thousands uf dollan;)
6. Pension Plan... continued:
The City is requir-:d to contnbute the remaining amounts nece.~ary to fund the
bonefits for its members, using the actuarial basis recommended by the PERS
actuaries and actuarial consultants as adopted by the Board of Administration.
The employer contnbution rate during the fiscal year ended June 30, 1991 was
6.052% for local nlli<oellaneou, membors and 19190% for local safety members.
The City's contnbution was made by applyu,g a surplus asset account bolance
accumulated through June 30, 1990.
Relater! pany Investments:
Related party investments are avoided by PERS as part of its written
investment policy and no known related party investments em! in the fund.
Funding Statu. and Progress:
The amount shov."Il be10w as the "pensioc. benefit obligation" is a standardlzed
lf1.Sclosure of the present value of pension benefits, adjusted for the effects of
projected salary increases and step-rate booefits, estimated to be payable in the
future as a result of employee servioe to date. The measure is intended to help
users assess the funding status of PERS on a going..::onoern basis, assess
progress made in accumulating sufficient assets to pay benefits when due, and
make comparisons among employers.. The measUle is the actuarial present
.. 21ue of credited projected benefits and is independent of tbe funding method
used to determine contnbutions to PERS.
The pension benefit obligation was computed as part of an actuarial valuation
performed as of June 30, 1990 (one year in arrears). Significant actuarial
assumptions used in the valuation include: (a) a rate of return on the
investment of present and future assets of 8.5 percent a year-compounded
annually, (b) projecte~ salary increa.",s of 550 percent a year compounde.d
annually, attnbutable to inflation, and across-the-beard real salary increases, (c)
additional projected salary increases of 150 percent a year, attnbutable to
seniority/merit, and (d) no post-retirement benefit increases.
Olntinued
38
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~
CITY OF PAW ALTO
NOTES TO COMBINED FINANO'-AL STATEMENTS, Continued
Iune 3D, 1991
(in thousands of doUars)
IS. Pensj on Plan. continued:
Fundiq Stalus aDd Progress, continued:
At lune 30, 1990. the total unfunded pension benefit obligation appU<:able to
the City's employees was as follows:
Pension Benefit Obligation:
Retirees and beneficiaries currently receiving benefits
and terminated employees not yet receiving benefits
Current Employees:
Accumulated employee amtributions including
allocated investment earnings
Employer-financec, vested
Employer-financed. non-vested
Total pension benefit obligation
Net assets available for benefits, at cost (marke: "alue
is $152,824 at Iune 30, 1990)
Unfunded pension benefit obligation
32,863
45,732
--L1l2
143,840
During fiscaJ 1991, the Board of Administration ofPERS approved system-wide
changes to the mortality. retiremeilt, withdrawal, and disability rates used ir.
ca1eulating the pension benefit obligation to better estimate the future
experience of the plan. For the City. these changes in actuarial assumptions
increased the pension benefit obligation by 53,469 during fiscal 1991.
Continued
39
\
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~ -;$~--:-
,I
.1
CIlY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollars)
6. Pensjon Plan. continued:
Actoadally Detfnnined Contribution R~uin!ments and
CoDtribulio~ Made:
PERS uses the Entry Age Normal Actuarial Cost Method which is a projected
benefit cost method. That i. .... it takes into account those benefits thst are
expected to be earned in the future as well as those already accrued. According
to this cost method. the normal cost for 2n employee is the level amount which
would funa the projected benefit if it "ere paid annually from date of
employment until retirement. PERS uses a modification of the Entry Age Ccst
method in which the employer's total normal cost is ""l're=d as a level
;>ercentage of payroll. PERS also uses the level percentage of payroll method
to amortize aoy unfunded actuarial liabilities. The lllIlortization period of the
unfunded actuarial liability ends on June 30, 2000 for prior service benefits and
for current service benefits.
The significant 3<:tUarial assumptions used to compute the actuariaJly
determined contribution requirement are the same as those used to compute
the pension benefit obligation, as previously described under Funding Status
and Progress.
The oontnbution to PERS for tho year ended June 30, 1991 of $6,749 was made
in accordance with actuariaIly .determined requirements computed through an
actuarial valuation performed as of June 30, 1990. The contribution consisted
of: (a) $6,149 normal coM (15.62 percent of current covered payroll) and (b)
$600 amortization of the unfunded actuarirJ accrue d liability (1.52 percent of
current oovered payroll). The City contnbuted empioyer contn'butions of $3,753
(9.53 percent of current covered payroll); and on behalf of employees
contnbuted $2,933 (7.45 percent of current ,overed payroll).
Trend Information:
Trend information gives an indication of the progress made in accumulating
sufficient assets to pay benefits when due. SYSitem-v-ride ten-year trend
information to be supplied by PERS is not yet avaOable.
Continued
40
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6.
CITY OF PALO ALTO
NOTES TO COMBll'iED F1NANCL.&.L STATEMENTS, Continued
June 30, 1991
(in thousands of dollors)
Pension Plan. continued:
TrEnd Information, continued:
Fiscal 1987-1988 is the first year that thi5 actu<uial information has been made
available by PERS. The trend information for fiscal yean 19&8-1%9 through
199().1991 is summar'.zed as follows:
199Q.1921 ~ 198I}1982
Net as:;.c.U available (or benefit!
cxp=sed as • _ 0( lhc
pcmiOD benefit oIXigatiOll !Il.7% !Il.6% 90.0%
TJDfImded ~ bellefit obIigatio~ expressed
.as I percentage of annual covered pa)ToIl 219% 22.8% 33.9%
Emr'oycr rontr'ibullom cxpt~ .... !>C'_ O( ... U.aI """,<0<1 paY>"On.
made in Iccordan<::e with actua..~
determiacd requircmena 9$% 10M 10.6%
In addition to providing pcru;;an beDefits, the City provides certain health care
benefit. for retired employ.... Subst2.ntially all of the Oty's employe.s may
become eligIble for thos<: benefit. if th.y reach normal r.tir.ment age while
working for the Oty. The cost. of retiree health care are recognized as
expenditures as claim. are paid. For fiscal 1991, ex;>e~ditures for retiree health
car~ for apuroximately 175 retired employees totaled 5981.
7. Deferred Compensation Plan:
Employees of the Oty of Palo .l\JtQ may participate in a deferred comperu;ation plan
adopted under the provisions of Internal Revenue Code Se~OD ,157, Deferred
Compensation Plaru; With Re.spcct To Service For State And Local Governments.
The deferred comperu;ation plan is avru1able to all employees of the City. Und-"
the plan. employees may elect to defer a portion of their sal aries and avoid paying
taxes 00 the deferred portion until the withdrawal date. The deferred comperu;ation
amount is not available for withdrawal by employees until termination, retirement.
death or unforeseeable emergency .
Continued
41
I~
I
.-.-~-----~~
CI1Y OF PAW ALTO
NOTES TO COMBINED FJNANOAL STATEMENTS, Continued
June 30, 1991
(in thousands of ~oIJars)
7. Dc:femd Cpmpensation Plan. continued:
The deferre<l compensation plan is administered by three unrelated administrators.
Under the tenns of IRC Section 457, all deferred compensation and inrome
attnbutable to the investment of the deferred compensation amount> held by the
administrators, until paid or made av",lable to the employees or beneficiaries, are
the property of the City subject only to the claiIll5 of the City's generai creditol"!'.
In addition, the participant> in the plan have rights equal 10 those of the general
creditor. of the City, and each participant's rights are equal to his or her share of
the fair market value of the plan assets. The City believes that is unlikely that pIan
assets will be needed to satisfy c1aiI1l5 of general creditors that might arise.
As part of its fiduciary role, the City has an obligation of due care in sele"'ing third
party administrators. In the opinion of the Cit)'_ management, the City has acted
in a prudent manner and is not liable for 10000S that may arise from the
administration of the plan.
At Iune 30, 1991, net assets available for benefits totale<l $19,042, which are
included as cash and investments in the Agency Fund and are offset by a
corre.1'Onding liability.
8. Self lru;m:~nce Programs:
The City has self insurance pragr= to prO\ide for general 5ability, medical and
dental, and workers' compensation claiIll5. Under the self insurance programs, the
City reta1ns the risk of loss for up to a maximU!O of $I million for each claim. The
activities of the self insurance programs are recorded in the EDtelJlrise and Internal
Service Funds.
Continued
42
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CI1Y OF PALO ALTO
NOTES TO COMBn.lOD FINA1',ClAL STATEMEl'iTS, Continued
June 30, 1991
(in thousands of dollars)
8. Self Insurance ProiUffiS. continued:
"'
Estimated liabilities are recorded for claims in cases where such amounts are
reasonably determinable and where the Uability is Ukel, for incurred but nat
reported (IBNR) claims. IBNR claims are claiIl15 that are inamed through the enj
of the fiscal year but Dot reported until after that date. The estimated liability is
determined based llpo!l actuarial estimates of the amOU!lts needed to pay prior and
current year claims. The estimated liabilities are reported at their present valu~ of
$6,020 at June 30,1991 using. discount rate which approximates the City's rate of
return on investments .
Changes in the self insurance Uabilities during the fiscal year ended June 30, 1991
were as follows:
Curren!
Ci:llm.s and
Balance at ("'"ha..nges in Claim BalaDce at
july 1 1m Estirn31e:; filmwI June 3Q 1991
1991 56,429 S5,723 $(6,132) $6,020
To ""ve, the risk of loss in excess of U million per incident, the City bas excess
liability coverage through the Authority for California Cities E>tcess Liability
(ACCEL). a joint powers authority of medium-stzed California municipalities.
ACCEL pools catastrophic generalliabllity, automobile liability and public officials
errors and omissions losses. ACCEL intends to pool virtually every catastrophic loss
incurred by its members, thereby eliminating t.'le need for commercial excess
insurance protection. At; a rt:sult., each member's sh-are of the pooled costs Vrr'ill
depend on the catastrophic 10S5es of all the members. In addition, the cost to a
member city will also depend on that member's mvnloss experience. Entities with
a consistent record of costly claims will pay more than entities with a consistent
record of Jesscr claims activity.
Continued
43
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CTIY OF PALO ALTO
NOTES TO COMBlJ','ED F1NANCIAL STATEMENTS, Co.tineed
June 30, 1991
(in thousands of dollan;)
8. Self Inglrance Provrams, continued:
In order to provide fund., to pay claims, ACCEL collects a deposit from each
~mber. The deposiLS are credited with investment income at the rate earned on
ACCEL's inves~ent>, The following is summary financial information of ACCE L
as of and for tile fiscal year ended June 30, 1991 (in tIloussnds):
Total assets
Total Uabilitie,
Members equity
Tota1 revenues
Total e><pense,
Exc.!SS income over expenses
$29,592
28,821
771
1,583
6,907
676
Settlements for each of the past three fiscal years have '!'!ot exceeded the: insurance
coverage provided by ACCEL
The following municipalities are also members of ACCEL: Anaheim, Bakersfield,
Burbank, Gardena, Modesto, Mooterey, Ontario, Santa Barbara, Santa Monica and
VIsalia. A representative from each member city, appointed to the position by their
City Council, serves on the Board of Directors of ACCEL "l'he Board is responsible
for deciding tile risks ACCEL will underwrite, monitoring the costs of large claims,
and arranging fioanciol programs, Each member of the Board bas an equal vote in
matters concerning ACCEL ACCEL doe'S. not bave any debt outstanding.
The funds invested by !be City ($2,291) io this pool are not included as assel, of the
City as of June 30, 1991. The transfer of total risk to the insurance poo! bas not
occurred; however, tile actuorially determined probable liability to tile C,ty for
claims not covered by this msurance pool is included in the City', accrued self
insurance balance as of June 30, 1991.
Continued
44
-----
CI1Y OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollars)
9. Sefmlent lnfpanation for Enterprise Fynds:
The City's six entel'J>rue funds ac-coullt for the acquisition, operation alld
maintenance of water. electric., gas, wastewater, refuse and stonn drainage facilities
that are supported by user charges-Segment information for lbe year ended
Iune 30, 1991 is as foDows:
Operating revenues
Depredation and amortization
Operating income
Operating trarufers to Governmental Funds
Net income (1=)
Current capital cootnbulions
Property, plant and equipment
Additions (eleluding construction
in progress)
Retirements (ile! book value)
Net working capital
Total assets
Bonds and contracts, net of bond discoun~
payable from operating revenues
Total equity
Continued
45
~
$ 9,299
432
3,310
1,131
2,415
297
74
3,084
21,129
20,385
$
~ ~
65,128 $ 17,207
3,013 414
20,787 1,525
9,289 1,74(;
10";91 546
220
5,291 2,563
700 599
58,210 11,942
129,064 27,792
335 376
124,537 25,611
"-
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J S 11,600 S 10,017 $1,659 $ 114,910 • 1,834 2.36 5,929 ..J
1,617 1,531 1,072 29,842
139 2,975 57 15,337 ...: 1,0n (9#) 1,106 14,586
!
1,340 1,560
, ...
J 3,148 1,806 13,105
29 1,402
5,353 6,095 1,247 85,931 ..., 55,235 14,696 3,943 251,859
11,569 15 2,167 14,462
~ 41,974 13,758 1,755 228,020
!II
-
Continued
46
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"':.'
CITY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 3C, 1991
(In thousands of dollars)
10. Proprietary Funds' Equ it(,
The Enterprise Funds' equity bas been allocated as of June 30, 1991 as foUow>:
Emergency plant replacement reserve
Systew. improvement reserve
Transfer stabilization reserve
Calaveras reserve
Gas supplemental supply reserve
Debt service reserve
EncumblllIlCe5 and reappropriations
Underground loan reserve
Conservation loan reserve
LandfiIl closure reserve
Contributed capital
Unreserved retained earnings
(accumulated deficit)
Total fund equity
Continued
47
S 461
381
2,242
7,684
S 1,800
9,315
10,807
29,206
59
6,551
473
14,661
51 66<;
Sl24m
S 432
4,745
1,493
3,777
66
898
531
3,292
.JJl..m
lli.m
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$ 986 S ';,679
1,947 $1,845 19,233
~ 12,300
29,206
, 3,777 ,
...;; 416 16 557
"1
2,004 1,695 $1,598 15,988
413
'--' 53l
539 539
~ , 31,053 56,690 :.J
~ ~ ~ ...J.l1 as 011
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~
48
CITY OF PALO ALTO
NOTES TO COMBINeD FIl"A!'KIAL STATEMEl'o'TS, Continued
June 30, 1991
(in thousands of dollars)
10. }IQprietary Fynds' F4jliity. continued:
The Internal Se",;« Fund's equity has been allocated as of June 30.1991 as follows:
Retained earnings:
Encumbrances and r~appropriation
Reserve for ronting~ncy
Conmbuted capita!
Total fund equity
11. Commitmept;:, and Comin~endes:
Northern (l1fi(Qmig Power AgC!lC\l
S 725
4741
5,466
...tllZ
1mu
The City is a member of the Northern California Power Agency (NCPA), which
operates under a .joint powers agreement among 14 agencies. NCP A was created
for the plUpose of planning, financing. developing. acquiring. constructing. operating
and maintaining projects for the generation or transmission of electric power. Each
member h3.s one representative on the NCPA council and ODe vote for matters of
budgeting and financing.
The City is a participant in a number of NCPA projects. Under the tenr.s of the
project agreements, the participants are obligated to make payments for their
proporJonate share of opeiating and maintenance expenses and debt service,
v.'hether or not the projects are operating or have been completed. The City has no
investment in the plant. These costs are included in cost of utilities purchased in the
Statement of Revenues, Expenses and Changes in Fund Equity in the Enterprise
Funds for the year ended June 30,1991. The project agreements remain in effect
until the project bonds outstanding are paid or funds are set a.~ide for sllch payment
and the agreements caro.J1ot be terminated or amended without consent of the bond
trustees..
Contiilued
49
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CIlYOF PAW ALTO
NO"ffiS TO COMBINED FINAl'lClAL STATEMENTS, C<>ntinued
June 30, 1991
(in tbousands of Goll",,\
11. Commitments and Contlll~ continued:
Northern Ca/ifomia Power AgenO'-continued:
The City's share of debt outs=ding in conjunction with the various projects at
June 30, 1991 is as follow.:
Total City's
NCPA City's Share of
Outstanding Participation Outstanding
Debt Percentage. Debt
Hydroelectric Project # I:
1985 Series A $ 35,230 22.92% $ 8,075
1985 Series E, F, G 352,945 22.92% 80,895
1986 Refunding Series A. C 272,000 22.92% 62,342
Transmission Project # 1:
1989 Series A 17,620 11.07% 1,951
The City's participation in a NCPA Geathermal ProjeL"! was sold to T.rlock
Irrigation District (Turlock) in October 1984. Accordingly, the City is liable for
payment of outstanding geothennal related debt only L" !he event that Turlock fails
to make spedfied payments. Total outstanding debt of the NCPA GeoL~ermal
ProjeC1 at June 30, 1991 is $766,870. The City's participation in this project is
6.15%, or 547,163.
All the debt is secured by certain reven.es and funds of NCPA In addition, the
Geothermal Transmission Project debt L, also secured under a letter of credit by
Swiss Bank C<>rporation.
In April 1991, the City signed an agreement with the City of Roseville to sell a
6.52% portion of its share of NCP A's Calaveras hydroelectric plant for ~ period of
14 years. Under the terms of the sale agreement, Roseville will pay all the
operation and maintenance costs associated with 6.52% of the plaD~ In addition,
Roseville will also pay the City a por-Jon of the net debt service obligations of tt.e
current long-term debt associated ,.ith the Hydroelectric Project No.1. However.
if Roseville defaults, the City is secondarily liable for the outstanding debt service
obligations.
Continued
50
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CITY OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollars)
11. Comntitments and Contineenoo. continu~d:
NQrthw California Power AW!!lZC)I· continued:
Following is a condensed balance sbeet as of June 30, 1991 and a statement of
operations of NCPA for the year ended June 3D, 1991:
Assets
Electric plant
Restricte d funds
Other assets
CUrrent assets
UabiIltIes and Equily
wng-term debt
Current liabilities
Other liabilities
Retained ~arnings
Statement of Operatiou
Sales to participants
Operating expenses
Nonoperating other expenses, net
Net income
rrqnsmj Won A ~ru:y Qf Noabem CaJifqmiq
(Unaudited)
$ 770,879
353,830
373,438
iiI 115
$),559.262
$1,420,860
78,788
26,992
32622
$1.552262
S 150,808
(80,485)
(Ii~m)
S 4350
In December 1984, a Dumber of California municipalities entered into a joint powers
agreement which created the Transmission Agency of N ortb, rn California (T ANC),
a political subdr.ision of the State of California. Th. purpose of T ANC is to
provide electric transmissiun or otber facilities for the use of the members. The
membership of TANC consists of the City, ten other cities, on. utility district, and
two irrigation districts. Eacb member has one representative on the T A..NC council
and one vote for matters of budge ling and finance.
Continued
51
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CITY OF PAW ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 30, 1991
(in thousands of dollars)
Commitments and Contjn~encies. contin!.led:
TransmittiQn Agency gfNonhgm California. continued:
The members pay for operating costs aL<l are entitled to an interest in the right and
propeny of TA.'1C in accordance with speclied participation percentages, with each
members' .hare of operating C05ts Dot to exceed $50 per year.
The capacity of the Project has been sold to the cities and districts which are parties to the
joint powers agreement and also establl5hed TANC. Unaer the terms of the Project
agreement, the purchasers ar.e obligated to make payments for their proportionate share
of operating and maintenance expenses and debt service on revenue anticipation notes..
whether or no~ the Project is operating or bas been completed. The Project agreement
rema.ins in effect until the revenue anticipation notes are paid and the agreement cannot
be terminated or amended in any manner that will impair or adversely affect the right of
the notehoJders.
As of June 30, 1991, the City maintains 4254% of tile membership in TANC. Amounts
outstanding under revenue notes at June 30,1991 are $273,811, of which the City'S share
is $11,&18.
Continued
52
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CITY OF PALO ALTO
NOTES TO COMBINED FINA..'KlAL STATEMENTS, Continued
June 30, 1991
(in thol1sands of dolla,,)
11. Qrnlmitments and QmIiniepdes... co:Jtinued:
Transmission AWJ'Y ojNOfthern CaIi{omig. contir.ued:
"' ..
Following is a condensed balance sheet as of JUDe 30, 1991 and a statement of operation..
oCTANC Cor the year ended June 30,1991:
Assecs
Projut deveiopment costs
Restricted funds
Current assets and deferred charges
Liabillti .. and Equity
Notes payable
Current liabilities
Equity
Statement or Operatlons
Interest income
Net income
Coiltinued
53
(Unaudited)
5208,184
175,806
----B5J
$364 843
1273,811
110,783
--ill
1384.&43
I 39
s 39
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CITY OF PALO ALTO
NOms TO COMIllNED FINA"ClAL STATEMENTS, Continued
June 30, 1>91
(in tho=ds of dollar.)
1]. Commjtment:; and egntjngcndcs-continued:
\
The City is currently obligated under an operating lease agreement with the Palo Alto
Unified Scl!ool Di..ltrict (PAUSD) to lease the former Cubberley School site 2lld eleven
extended rlay care sites. The lease is part of a larger agreement whicb includes a cov:nant
not to develop certain properties owned by the PAUSD. The lease term expires in
December 200S with an option for an additional ten· year term. The City is c<sponsible for
i!!surance, repairs and maintenance e<penses related 10 the leased facilities, which are not
to exceed S250 per annum. This lease is subject to annual appropriations by the City
CcnnciJ to make the annual lease payments ond is <ancelabl. upon 90 d, ys wrinen notice
in the event funds are Dot appropriated by the City. In addition, the lea", is contingent
upon authorization by the Palo Alto electorate if it ""cuds the City's Proposition 4 (Gann)
limitation in ony fiseal year. Lease e<penditures for the y= ended June 30, 1991
amounted to 54,072. Furure minimum annual lease and covenant payments are as [oUm.,;
Year Epdi0i' June 30
1992
1993
1994
1995
1996
Thereafter
Total
Amount
$ 4,254
4,295
4,295
4,295
4,295
..!O..EQQ
~
Included in this lease agreement is an additional romrrlltment to relmbu"e the School
District for athletic field improvements at an estimated cost of $225.
Continued
54
,-
•
CfIY OF PALO ALTO
NOTES TO COMBINED FINANCIAL STATEMENTS, Continued
June 3D, 1991
(in thousand. of dollars)
11. Commitments and ContioKencies, continlJcd:
Litigatioo:
There are ("'.mently pending against the City certain legal actions arising in the normal
course of operations. In the opinion of management and legal counsel. the ultimate
resolution of such actions, not covered '0)' insurance, is not expected to have a
significant effect upon the financial position or operations of the City.
Lytton Gardens Convalescent Hospital:
In fisoaJ 1987. Ibe City issued bond. to refinance existing construction bonds of the
Lytton Gardens Convalescent Hospital. Receipts from the operations of the faClilty
are pledged fO£ payment of the bonds. The bonds are not a Uability or contingent
liability of the City or a lien on any of its properties and are insured .. to the payment
of principal and interest b)' the office of Statewide Healtb Planning and Development
(SHPD) of the State of California. An event of default occurred in November 1989,
when Lytton Gardens made payment from the bond re:;eeve fund, and no payment was
made for the fisoaJ 1990 bond interest. No aClion has beer. taY.en by SHPD to declare
the bospital in default. Lytton Gardens made payment for fisoaJ 1991 bond interest
and intends to ""tore the bond reserve fund .., improving cash flows permit. At
June 30, 1991, $14,165 is outstanding under the .. bonds.
Palo Alto Medical Foundation:
The City issued revenue bonds in fiscal 1987 to finance the purcbase and improvements
of equipment and facilities of the Palo Alto Medical FoundatiolL Gross revenues from
the operations of the faeility are pledged for payment of the bonds. The bonds are not
a liabillry or contingent liability or 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, 1991, $25,200
is outstanding under such bonds.
Palo Alto Sanitation Comp,,"y:
The City bas entered into a 6O-month contract, which expires June 1995, with the Palo
Alto Sanitation Company (PASCO) for the corIeClion and transportation of refuse,
rubbish and garbage. The City is conunitted to pay PASCO a percentage of re~J"
revenue billed to City citizens and customers. That percentage, which ks negotiated
annually, is currently 50.85%. During fiscal 1991, the City made payments of $5,040
for services rendered by PASCO.
Continued
55
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CITY OF PAW ALTO
NOTES TO COMBL"lED FL'IANOAL STATEMENTS, Continued
June 3D, 1991
(in thousands of dol: ... ,,)
12. Bl1d~tatY. GeneraDy Accepted Ar,cOJIDting Principles (GMP)
Rel"'rting
The following recoociliationpresents comparisons afthe legally adopted budget (more folly
described in Note I) o~ a budgetary base" with the budget as adjusted to reprosent a
GAbJ' basis:
:E~ 0( teYCl1UC:$ aDd other financing source.s
0'\Iet {UDCkr) c.xpeadi.tutes a'nd ()(ber financing
.... (bodgewy basis)
Adjustment CO'! encumbrances
~ or revenues and other fiDancing S(lurc«
oYer (UDder) c>pel>dlnues and othu fuwocin£
..... (GAM basis budg<ot)
13. AdvanceS from General FUM:
speci.al c.piuI
Genera.! R~Due Projects
..BloL ...bwL ..EImlL
$(5,762)
jJIQO
S 849 $(10,822)
.l.l2Z -1ID
Facility rent payable by the Enterprise Funds to the General Fund is based on estimated
property values. During fiscal 1988, the City detennioed that property value estimates in
prior years were underslated, resulting in underpayments of facilit"f rentals payable by the
Enterprise Funds to the General Fund of approximately $2,773. During fiscal 1988, City
Council approved a budget amendment to allow the payment of additioruJ rent due for the
current and prior years. The Water Fund was unable to pay the additional rent, and an
amount due to the General Fund of $1,155 remained recorded as a long-term liability in
the Water Fund at June 30,1990. Durin. fucaJ1991, the entire outstanding liability was
repaid.
In addition, during fiscal 1989 the General Fund advanced $941 in working capital to the
Storm Drainage Fund and it was reponed as a long-term liability in the Storm Drainage
Fund a!June 30, 1990. During fiscal 1991, the Storm Drainage Fund repaid $94 of its long
term liability to the General Fund. During the year it also received an additional advance
of $1,320 from the General Fund. A repayment scbedule has been agreed upon for this
advance, and the balance at June 30, 1991, is $2,167.
In fiscal year 1991, the General Fund advanced $500 to the Street Improvement Fund to
be repaid from fiscal 1992 gas laX revenues. This amount has been recorded as a liability
in the Street Improvement Fund.
56
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/.
J/'jl)EX TO SUPPLEMENTAL SCHEDULES BY FUND
General Fund •••.....••..••...••..••••...............•........... 57-62
Special Revenue Funds ............................................. 63-73
Debt Service Funds ....••...............•.•.....•••......••........ 74,78
Capital Projects Fund. • • • . • • . . . . • • . . . . . . . . • . . . . • • . . . . . . . • . . . . . . . . . .. 79·81
EnteIJ>ril;e Funds ••.••.......••.......••.....•..................... 82·93
Internal Service Funds •••. . . • • . . . . . . . . .. . . . . .. . . . . . . • • . . . . . • • • • • • •• 94·100
Trust and .-.geney Funds. . .••. . . . . . ... . . . . . . .. . . .••. . . . . . .•. . . . . . .. 101·106
General Fixed Assets Account Groop .. . • . . . . . • . . . . • . . . . . . . .. . . . . . . . .. 107·111
General Long·Term Debt Account Group ...••........................ 112·116
..;.. ..
.",",.': .""',.-".'"
QENEEAL FUND
.. ~--
The General Fund is the gene;-a! operating fund of the City. It is used to account for ail
financial resourc:s committed to financing the services that the City perfcrms for its citizens,
except those required 10 be accounted for in another fund.
57
CI1Y OF PAW ALTO
GENERAL FUND
BAlANCE SHEETS
(in thousands of doUars)
Assets:
Cash and investmeDtsnl
Receivables, net:
Accounts
Interest
Notes
Advance to other fund
Stores inventory
Prepaid expenses
Total ~ts
U.bllllI .. :
Accounts payable and accrued liabilities
Accrued salaries and benefits
Deferred revenue
Accrued compensated absences(l)
Acaued self insuran",,(l)
Total liabilities
Fundeqully.
Fund balances:
Reserved for:
Encumb=ces and reappropriatioDS
Notes
Advances to other fund
Inventory
Unreserved:
Designated for;
Self iru;uran",,(l)
Streets and sidewalks/school site projects
Contingencies
Total fund equity
Total liabilities and fund equity
('>see Note 2 to Notes to Combined Financial Statements
S8
I),lDC :2Q
l22l
$ 6,711
3,481
2,572
420
2,667
1,109
llZ.!WI
1,867
1,039
28(1
~
4,006
420
2,667
1,109
632
....MOO
J.J.UI
wm
122l!
$ 5,738
3,~79
2,113
2,096
903
----.l2a
W.22Z
964
1,000
153
-2.UZ
4,514
2,096
903
367
-2.QQQ
I~BaQ
lli.22l
"
em' OF PALO A!..TO
GENERAL fUND
~"!'ATEMEN'!~ OF P.EVENUES, EXPENDITURES AND CHANGES
IN FUND BAlANCES • SUDGET AND AL-rtJAL
(m thoUS&Dds of dollars)
~[ ~~4 l!.Y!~ ZO l!?5!l
Variance
Favorable
I!iId&<I MWI O/pfaYll[JblC) -, T--,
PTopcrty ..... S 7,921 SI,109 $188
Saloo t&= 14,100 14,140 40
Utili!y ...... '"" 5)00 4~ (233)
T_ """'f'III<Y tax 3,161 1,969 (192)
O<hct ..... wi fiaes ~ -1.ill ....ll!!!
Tota! taxes 33,829 33,&22 (1)
rill: protoctioa ud cmergetK'Y t:('JQlmUllication ...w.. 3,444 3,561 111
From cCbcr~ m 436 103 50\"'" r ... aod pe:mlts 5,909 6,168 259
IDJ ..... eamiD&> 2,iXXl 1,,19 (81) ID.ItrluDd __ act (305) (Jll9) (4)
01lI0<_ ~ J.UIi ~
Total reYenQC::l, ...!Z,ll.!; .J:J..W. ....!!!Ii
~
Curreol opcratioo>£
A~ 8,62>! 7.-.0 745
Pubtic works 7,154 6,154 1,600
Coi:oJ:;lunity enviroamtllt 2,931 2,881 s.:J
!>oblk ..rc<y • PoIi«: 13,00 12,167 216
hh& safety ~ rue 10,041 ',')'62; 2'19
Social setVices 12,305 11,647 658
Scl>ooI sit. 1"_ ~ J.Q2l' ~
Toul copcDdirur.. ~ .am .JMZ
Exces.s of eq:endit~ oYU r~nuea; .ill.ilil .11..1!§) ,.U}lI
YcubWl
1 .... 30,
1990
Actual
S 7,512
13,967
4,833
3p1O
...JJ:ll
33,105
3,029
463
5,615
2,38l
2,419
~
~
7,sz;
7,f'I1iJ
3,065
11,881
9,rY>7
10,847
~
"arn
..AW)
(Continued 00 foOowing page)
59
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~" em OF PALO ALTO
GENERAL FUND
~ STATEMENTS OF REVENUES, E),.;>ENOITtJRES AND CHANGES
IN FUND BALANCES ~ BUDGET AA'D ACTUAL. Conticuc:d
(m thow.a.uds or dolla:t:s)
< -,
~
-,
'1 ..J YQI End~ J?!~ ~ 1221 y .... Eode.l
I Varia.ace June 30,
Favorable: 1990
-' ~ Mll!o! Nnfgyprablc:) Aaval
I ~ Ex~ of expenditures ow;r revenu;:s ~ ~ W3!l ~ ,
...J Other IIaudac ........ ( .... ):
Operating IransIen "" : Sued Im~C6I Special R~ue Fund 1S 134 119 84
--Federal R.ew:l!.ue SpeO.l Revenue Fund Bl I' 51
Special r>mmct Speciol R..". .. Fwd 110 110 m
HOG:i.iDg lm~CD1 Spec:i.al Revenu.e FUDd 41 14 (11) lOO
Capila1 ImJ"""C"'''' Project Fund 452 (452) 14()
Eote<priso FImds --= ~ 14 471
Total' operating transf'ers in J!ill .ill!!!!. -illQ) ..I.l.ll2
Operating tramfc:ni out;
Capital Projut Fund (7,491) (5,747) 1,744 (4,238)
Debt Semcc -.c1!2l ~ ~ --12Za)
Total operating transfers. out -1Ml2) ..Il&l§) ..l.lI2l ~
Total other financing soucc:a. ~ ~ ..I&l ~
E=ss 01 =en ... aod other fuw>cins
IOQrces (WCT (u.ndcr) expenditures &ad
oIl= finan""s "'"' (5,762) (181) 5,581 4,741
Fand baw.c.. bcginJ>lng of Y= l2,880 12,8110 12,764
Resjdual equity transfer in:
Capital Project! Fund 1,135 I,US 2,302 , Deb< Sernc. FWKI -Special Assessm,", Band 6
Residual equity traDsfer out:
Capita! Projects FLPJd (1,143)
Interual Service Fund ~
Fad balance., ClJd cf )'U1' ~ ~ ~ ~
. __ ._---
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to:
CI1Y OF PALO ALTO C
GENERAL FUND
sr.:HEDULES OF EXPENDITURES r
COMPARED TO BUDGET ..
em thouson4s or doDan) r ..
,..
r' -Ya!: ~,,~ lWlC JQ l221 y .... Ezde.l
Varia=: June: JO, e Favorable 1990
~ .&:I!II! {Unfayorabte} Arow
~
SaIarles ood bel:cfiu S 5,640 H,&36 S 4 S 5,449 , -Cootnct ..me.. 1,711 1,169 .. 2 1,157
S>ppIioo ODd materioh 185 161 17 200 r'"
GeDeral eo<peII$O 189 5$.!l 2:l4 837 i, ..
~ODdleaoes I' II 3 11
F_ ODd equipm=< p~ .....1!f ~ ~ -111 !'"
-A6lS ...uw ....7i:i ...:z.&l , ...
Pub6c_
SaIarles ODd beacfiu 4,352 4,438 (86) 4!ff1 r Coatract ..m:e. 1,847 I~ 785 1,273
Supplioo aad .... oriaIo 740 m 213 !,COO ...
GeDeral_ 683 69 614 525 po R .... ODd leaoes 30 5 25 S ,
FadUti<s ODd e<Jcipmem p~ ----1l!<l ~ ~ ----11! ..
-1.1:i! ~ UW ...1.11!!11 r. Comm..uy 0DY\r0mne0t:
SaIarles uo4 t.e...firs 2,306 1,+16 (HO) 2,362 ioo
CoalncI ..me.. ']U} 1'13 96 421
Supplies and materials 37 34 3 36 ~
Gwern expens< m I~ 77 2U , ..
R.mlS IJld ~ S 4 1 3
Fadlities and equipmenr purchases -.!1 -12 _il -.ll C ~ J..Hl ~ ~
(Cootinued on foDowiDg pDge)
..
. -------._---.----.~----'--'-'"--
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Cln' OF PAW ALTO
J ~.
GENERAL FUND
SCHEDUI,ES Of EXPENDITURES .1 --' COMPARED TO BUDGET, Coc:tinued ,
"~j
~ rm thousands of c!on.,,)
~ -'
V'iIl ~d,~ ,li/;IlS< ~ 1:99] Year Ended
Variance June 30,
Favorab[e 1m
~ ~ I)Jn(ayprablc) ActyN
Puhtk .safety ~ Po[jt;:C:
Sa.laric:I; and benefits 110,970 111,357 S (387) SIO,5S4
Contract~ 163 643 110 ti.S8
Supplies awl matorials 240 216 24 191
Gc..enl apeme 924 m 425 306
Reats IDd Iea<es 19 10 9 13
Fac::ili.tic:s. and. ~uipmo:.nt pw-cha:.<.es --1ii1 ----ill ~ --W
.l.lll!!l .ll.I!IiZ -ill JJm
Public wet)' 4 Fll'C;
SaJarioo aod bene6ts 8,971) 9,l38 (168) R.38S
Contract ..rue.. 355 lOl IS< 153
Sufpli.es and materials 95 81 I. 7l
Gooual-= 458 l7l! 180 :m
Renu and leases 3 1 1 1
FaciIitics and ~uipmeDI purclw.es -W --'l ~ --Ii
..lQ.Q!1 --1.ill 1:19 ~
SociaI~
s.Jarics and beDe6lS 6,94-7 7,113 (166) 6,863
Cootrad .services 2,oaJ 1,705 315 1,388
Swpp~ acd m2.Ierials 1,085 976 109 830
Genera:i expe~ 1,.34' 1,027 3W 1,139
Reuts and k.asu S28 528 497
Facilities and equipmenl putcha.o;.es -lJ.B -m --'1!l -nii
..lZ.m JlM! ~ -1llM1
Nan-departmental expense:
Scltool' site payments ~ ~ ~ -U1l
_!1H2 ~ ~ ~
Total ~ndltures, gcecra! fund ill2.ll ill.m p642 lli£lI!
62
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CITY OF PALO ALTO
SPECIAl. REVENUE F! 1NI)S
Special Revenue Fund:; are used to account for the proceed:; of specific revenue sources (other
!ban ageocy fund:; or major capital proje.."IS) that are legally restricted to expenditures for
spedfied purposes or for which separate accounting is required by administrative action_
The City's Special Revenue Fund:; are as fellows:
• Street Imp""""".ot Fund -established to acrount for the constru<tion and
maintenance of the TOad network system of !be City. Financing is provided
by the City's share of state gasoline taxos_
• Federal RrnDne FUD~ -establishe d to account for monies received by !be
City from the Federal Community Development Block Grant program.
• HODsiag ID-Ueu Fund -established to account for monies received from
industrial and residential developers to provide bousing under the City's
Below Market Rate program.
• Special Districts Fund -established to account for monies derived from
parking permits and for maintenance o!various parking "'Is widUn !be City.
• Transportation Mitigation Fund· established to account for monies derived
from fees or co!ltnbutions required for transportation mitigation issues
enrountered as a result of City development
In addition. inter""t income aDd expen. .. of !be City of Palo Alto Golf Course Corporation and
!be City of Palo Alto Public Improvement Corporation are presented within the Special
Revenue Funds statements. .~-,
63
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-
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'"" l.
C
64 C
" •
..,
-.
JUDe. 3Q ] 991
T~tion Publio
MitiptiQJl Improvement
S873
SS
928
.m
W -
Golf
~
-
6S
Totals June 30
1m. 1m
$6,110
545
.J.m
178
l,l19
3,llS
4,418
_ill2)
.2.l3!!
WU
$5,476
134
293
439
1,433
4,145
---illQ)
..un
WlQ
•
... \-,. -.-" ...
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CITY OF PALO ALTO
SPEClAL REVENUE FUNDS
COMBINING STATEME."<TS OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BAlANCES
(In thousands of doUars)
Ra-enues:
Gas tax
From other agencies:
Community Development Block
Grant
Interest earnings
Other:
Slate of California
Great Western BanI:. -Loan
H P.")"!i Ii in<lus 'a! OI.1S1!lg-m-eu -tri
Sale of Seale Wen Site
Traffic Mitigation -Transportation
University Avenue Parking
California Avenue Parking
Total revenues
Str..,t
Imprpyfjwept
~ 950
89
24
~
year EnAA" June 30 1991
Federal Housing
Rev,DllC In-I jey
S 361
55 $ 254
218
791
6(}7
~ ~
ExpeDdltuns for opeciaI ....... D. project. ~
Excess of revenues over
expenditures ~ ~ ~
OCher I!naDcIng w;es:
Operating tranSfers OU!:
General Fund
Capital Improvement Fund fgji (lOS)
Total other financing uses ....(2QZ} ..1W}
Excess of revenues and other
financing sour¢""~ over
expenditures and other
financing uses 156 100 1,652
Fund balances, beginning of year 1,081 91 3,350
Housing Improvement Program notes ..l..l2J
Fund balon • .,., end of year 11m ~ ~
66
S cia! ohtricts
$ 39
273
....1.f>
~
~
(110)
illQ)
278
301
ll22
•
, (me
r-~ , I -i -! ~ ,
~ i
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v ~iIl llDd~~ I~n, ~ l2l1l Total Years
T~tion Public Golf End,11 l:unc 3!l
M;nptiQ!) Im12[Qv~~Dt CI!.u.!x 1m 1m
$ '50 S 813
~
...J ~1 36&
$ 49 $479 $72 1,037 973
1 l4 26
118 451 ,
791 193
607
385 38S 265
173 294
~ ~
..ill ..rn .1l ~ ~
--' ..rn .1l JIll ..l.lli
..ru ..J.ill. ..u;:l!
(349) (508)
-lID) (Ll.l@
I !1.W.) (!.ill)
434 1,610 650
-, 494 S~17 4,667 -...Ll2J
~ ru§ n.lJll ~ --
61
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.. '<,
CITY OF PALO ALTO
SPEC! AL REVENUE FUNDS
COMBINING STATEMENTS OF REVENUES, EXPENDITURES AND
mANGES IN FUND BAlANCES • BUDGET AND ACTVAL
fOi tlR: j't'-M ~odcd 1une ~. 1991
with tompar3l.iYc totals ror year ended June 30, 1990
(m tbouunds of 6obn)
...........
Gas "" Ftom other agcacica:
C<JmmUDily o...Iopmcnt Blodt G"""
1nletesI~
Other.
State of CalifonJia
G.oat W ...... BanI; • Loao pa)'Ol!
Sale of Scale Wen Site
H~iD-liw . hu!umia!
T..JIieMWptloo· T~
U""=iIyA.....,P .. kiac
California Aveo= P&<king
Total reveuuel.
E<peodI_ r .... podoI ~ P">Jeds
bees.s oJ. te¥ectlC:li 0YCl' cxpendlturcs
0tI00r !!uodDc ilia:
Openting tran.fen out
G<ncral FWI<l
C&pitaI lmprovemeru FUDd
To<aJ 0IheT Ihw>cing ....
~ or Te\lCDUU and other-financing 5OUtce5
over (_) "I'<"dihu .. aDd o<b ...
lin;mciDg ....
F .. d loItla-, ""W0';'g 01 J'W'
R~ ¢ Traffic. Miligaricm Re-serve
Housing wP'"OYClCW Program :i:ll)(cs
Food boIaDca (deIIdt), =l of J'W'
68
l~l
St=<
IlZIllI~cat
I!wIi<I &:lui
$ 195 I 950
34 ..
24
...11:12 ..I.!I!io1
.J;l2 ..I.!I!io1
(14) (134)
....1M) ....rz:m
..!]12) ...Jl!!ll)
30 156
1,081 1,IlII1
1l.W 11m
V"""=
Favorable
OJpf'YQI1IbI C)
SUS
55
24
~
~
(120)
...ll
UQll)
1l1!i
Actu.al
..I21lL
$ 813
11'
26
~
~
(84)
(J.Q@)
!.W0
(193)
1,274
u.w
•
,
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•
1~1
Bik!il Rme:z:
~
..ill
~
~
(l22)
!mJ
(17S)
91
~
-
S 361
55
Z11
.J;H
~
~
(lOS)
~
100
91
..!.ill
~
Variance:
Favorabl=
a lpjeyorobJe)
$ (172)
55
218
-lQl
--1.l2
~
17
-.l1
175
.l.l2.l
~
Aotua)
.l22Il.
451
m
Jil!l
.m
(151)
Wl)
(13)
'04
L2l
;'.'
1991
Variance
HQy~n~·Ii]-ki!:ll Favorable Actual
IllIWl Mal OJpfavorablel Jl!2Q..
$175 S Z54
601 607
516 791
..l.Z2l! ~ ~ ~
-...&! .Ji!!Q
~ J.m ~ --4Ii.l.
698 1,652 954 465
3,350 1.J5<l 2,896
(H)
W:!§ W:I!O W W.i!l
(conriDued on (onowing psge)
69
•
CI'IY OF PALO ALTO
SPECIAL REVENUE FUNDS
COMBINING STATEMENI'S OF REVENtJES, EXPENDITURES AND
CHANGES D' FUND RALANCFS • BtJDGEr AND AcruAl., Cootinued
fa< the ,.,... CDdcd ,_ 30, 1991
with eomp&I"a.tivt: total!. for year ended June 30, 1m r .. __ 01 do!lan)
1221
SpociaI Varia=:
Dimid< F.-
llI!lIi<I &I:lIIII alJlflWM'1l~)
ReYes-
Gas ""
Fromodler~
ea. .. ...." ~ Blod< Gnm
raterest eamiQp $30 $39 $ 9
Other.
Stat~ of California
<mat W.....,. 8aDk • Loan poyoff
Sale 01 Seale Well Site
HousiAg-m.-6cs -~
TtalIk MitipIicG • Tramponatioa
Unlvenity A ...... l'ukiog 296 m (23)
CaJifonda A:9BDD.e PartiDs ....ill ..l6 ...w
Tot.r~UCI ~ .os .a.a>
E<peodl ..... r .. op<daI ........ pnjecIs
E=a oC reoeauca ""'" 0Ip0Ddilure0 ~ .os .!ill
0dI0r I!aaad.Dc .-
Op=ling ..-out
G=raI F'Imd (110) (UO)
Cap;'allmproo<ment Fund
Total o<htt financing .... (ill) illQ)
Ex.a:&s 01. ~\IeI anr! other IiD.acw:iD£ &OW"ccs
over {mtder) ~rurt.5 and otber
IinaDCiag .... 296 m (18)
FODd boJaaca, beginniog oC ,.,... 301 301
Rcdass of Traffic MiDptioo R ......
HowiDg ImprOY'ClPeni Program noIes
F.ad baiaD<CS (ddIdt). end of year ~ 1m ~
70
-
..
Actual
.l2ilL
294
-B.:i
.J21
.J21
(273)
£m)
120
175
W
.
"' -L
-
c
c
~
I
I
~ .,~
I '1
:1
;;
'J
-'
~
~
~
~
494
~
1991
$49
38S
..il<I
~
G4
494
WI
VariaPa:
FavoAblc
aJnfO)lQ[·bJe)
$49
385
~
~
434
~
,
~~... ;'"
S2ti5
.Al
--Iji,j
2bS
218
11
~
lQ91
-.lrow!'"lWjrnc;pt Illl.IIW _
$479
..a
.m
---
Variance
Favorable
CUmavorable)
$479
.m
ill2)
--
$491
.m
.m
--
(CoDMur.d on fol1owing page)
71
CfIY OF PALO ALTO
SPECIAL REVENUE fUNDS
COMBlMNO STA~ OF REIlENUES, EXPENDITIJRES AND
CHANGES IN FUND BAlANCES • BUDGET AND AClVAl., Coutin ... d
far the year wdcd JIIUC 30, 1991
'fI'it.h comparative touh ror year endoQ: 1une 30, LQ90 r m thousaads 01 c!oIIm)
129
' vman."
nolf Come Qzm Favorable
B..wf&cl &;lual CUg!!lVWJb1e' --G .....
From other agcndes:
Commuolty o..dopm ... Blodl O_
Int ........... sn 572
Otl=
State rJl Ca6lomia
a.eat Wcot= Bad • '"""" payoff
Sak 01 ScoIo W.u s-..
H~6ou • IndustrisI
TnIik Mqatioo • TnDsportari<m
UDiverUy A...." p.m.g
CoIilonlia A-.. PartiDa
Total reYC.Du:& ...n .Jl.
E>pmdItuno r.. opedaI _ JHOSecIo ...n .!W
_ 01..,..""... 0= t>peo<fitu=
oo..r IIooJw:Ioi ....,
Operilling !n ....... _
=<.a1FLmd
Capiul Imp''''''''''' F""d
Total o<JJe,-Iinmcing ...,.
Exao&s ot revenues and other financing
IoOtUCeS over (under) ~di;urc.s &ad'
o<JJe,-Iinmcing ....
F .. d baIo-, beginrJng of year
Redass of TnfIk Mmgatiou Rue ...
HIRlSing Imprtl'Y'CDloCDt Program DC'{CS
Fuad.......,.. (oIdIdI), 0JId ofyur -- -
72
S76
..lA
..Jji
-
,.. , ..
c
-
'-
r:
'"' ,..
f ...
,.. ...
...
,..
~
C
/" , ' -
C
c
,'--.·",,··' ... t_' _mil,.
, ,
TQf;&!. :S~il! R,~[]l,!; F~Wi:
variaooe
B,~'Ct ActwoI Favorable Actual
~ ..1m. a JpfeYOrable) .l22i.
.J S 795 S 950 S 155 S 813
533 361 (172) 368
~ 230 1,037 79!1 m
14 2' 26
218 218 451
(ifI rm
516 191 175 1'n
.l85 38S 26S
296 273 (23) 294
.J;l -.ll --ill ~
~
~ .. m ~ ~
.l.ll!2 ~ ~ ~
~ ],742 ~ .J.l.lI)
~
(246) '"'0) (lO3) (SOB)
---tru) JmJ ~ (1.001) • (!.Qill n lU) --W) LUlQ)
~
" " 84' 2,620 1,771 6SO ~
..., 5,311 5,317 ',667
-' J.,!l;l _1,1.9.3
'i W!i!i I'.no g964 ~ ,
...,
" J
...,
73
---...... _-., -~ .... -.--------
"-~
:~~:
..,
J
';
CITY OF PALO ALTO
DEBT SERVICE ~
The Deot Service Funds are used to account for the accumulation of resources for, and the
payment o~ general long-term obligation principal and interest, other than obligations payable
from Entezprise and Internal Service Funds.
74
'-
em' OF PALO ALTO
DEBT SERVICE FUNDS
COMBINING BAlANCE SHEETS
(in thousand! of dollars)
Assets:
Cash and investments
Special assessments receivable
Accounts receivable, oilier
Total assets
Llablliliu:
Deferred revenue and other liabilities
Total liabilities
FlUId eqaily:
Fund baJan=:
R ... rved for debt service
Total fund equity
Total liabilities aod fund equity
Terman
I.&i.&.
52,118
75
June 30, 1991
Golf
CmuK
5178
...l1B.
...l1B.
1m
Telepbone
Tease
599
.: ..
\
c
...
L.
[
-
r ...
c
"'
~
~ ~yn~ ~, 1221
Special
Civic Assessment Total:!: J!.tD~ 30,
" ~ D~12t l22l 1m
...;
~. $836 S 762 $ 3,993 $ 6,019
j 8,419 8,419 8,914
~ ~ ~
..J ~ 59,242 w.m lli..Q2§,
...8§l! J..lli ....8.2.ll
.MD ....Mlll ~
~ ---.m J.rn ~
...s.N ---.m ~ ~
--~ 59242 112,473 $15,098
I
~
C
CI1Y OF PALO ALTO C
DEBT SERVICE FUNDS
I"t COMBINING STATEMENTS OF REVF-"'UES. EXPENDITURES AND
CHANGES IN FUND BAlANCES I.i
(in thousands of doll.,,) r" , ..
XU!: ED"~d hm~ lQ 1221 '" , .
Te= Go!f Telephone \,;
~ ~ Lem r Revenues:
Special assessments ...
From other agencies S 216 r Interest earnings ---.ld!i ill ... Total revenues _M12 -ll
Expendltu .... : -,.
Debt service:
Principal retirement 395 75 $182
Interest and fucaI charges ---.J.a1 ...1J --1l
Total expenditures --.m ..l48 .l.22
Excess of revenues under
expenditures ....u&l) aM) W)
Other JlnanciDg soun:es Co .... ):
Operating transfers in:
Genera~ Fund 136 141
Proceeds of refunding bonds
Payment te bond e'Crow agent ..
Total operating transfers in ...ill .J.il
Operating transfers out: ..
I
Capital Projects F uDd ...
Total operating transfers out r"
Total other financing sources (uses) ...ill 141 I-"
Excess of revenues and other
C financing sources over
(under) expenditures and
other financing uses (380) 2 (58) '" Fund balan .... beginning of year 2,498 176 157 1 ..
Residual equity transfer out
General Fund 0 Enterprise Fund
Fand balances, end of year ~ 1m 1..22 ~
77 C
"-~"" ......... ---""
'& ,
):~lIr &ml~g lY:l~ ~Q, 1991
Special Totals Y~an
Civic A.<Sessmeot Ende~ l~ Q~ ~,
~ Debt 1m .t22Q
~ $l,(lle $1,616 $ 99()
-, Wi ·208
U1 -bZ -ill .....m ...
~ ..lJlZli ~ ..l..m . .,
150 487 J,2ti 1,113 ...., ..ill ~ ..1.8Sl .1434 ... ..ill -Llli .3.lli n£1 ..,
'-' ruaJ ....!JQ!l) !.LID) .Jm)
612 88lI 978 .., 6,42U
(tilQi ,
..hl1 .....m .J.18l
1.42~ ...Lill .., ...Llli ...Lill .. ..ill. (1ili) ..lS.ll) ~
--:
..J
0 34 (1,726) (2,W) 810
J 802 2,5S1 6,134 5,380
~ (6)
{ ----.11) ----.11) '"
W{j L.m ~ ~
78
, ,
•
,,-.
,>"4
"\' .. _ .• 1__ _ _______ • ____ ' ___ ... ___ .... _____ '"
CITY OF PAW ALTO
CAPITAL FRomers FUND
The Capital Projects Fund is u..~d to acccunt for financial resources to be used far the
.cquisitiOD or construction of major capital fa<'Jities (oilier than those fuanced by proprietary
funds and special revenue funds).
79
~ ..,
(
" ,
' . .. 5;' ..
..
,.:
~
'-'
...,
-
l ...
~
..,
i!i
Assets:
Cash and investmeots
Accounts receivable
Total assets
liabililies:
'0
' .. ;
CITY OF PAW ALTO
CAPITAL PROJECTS FUND
BAlA.'lCE SHEETS
(in thOusaJl ds of dollars)
Accounts payable and accrued Uabilities
Deferred revenue
Total liabilities
Fl14dequily:
Fund balances:
Reserved for:
Encumbrances and reappropriations
Unreserved:
=ignated for streets and sidewalks!
school site projects
Desigoated for capital projects
Total fund equity
Total liabilities and fund equity
80
June 3:Q
l22l 1m
$11,496 $12,892
_ill -1Q
~ 1.ll.2!i§
G04 681
----Z2 ----1J.
--.m ~
7,zS5 6,755
...M1S ~
...lU12 ~
~ 1l1.2!lB.
..
" .... -.
CITY OF PALO ALTO
CArn"'L PROJECIS FL'ND
STATEME-'TI> Of REVENUES AND EX1'ENDITtJRFS
AND CHANGES IN FL'ND BALANCES
BUDGET AND AcruAL
("10 Ihousands of """"')
-"""'" ...-Slnfordl1~
Sbt£d~ -..~-........ -.. ,-. mApa "'""-SM: d Sea Well Sib:
T"",_ F, 7 .... ~~
&.t oI.~ CMI" c--r)
i 5 '"
0IIIIr ...... __ C-):
0pcrDt tnIIIIels a: """'" ,... l.1tifiic.. a-.l .... ~
Dctc Servia:" Pad
Spo:o:W a-PNt --ToUl ...... tI'IiaIIIen ia
0pcniiIIa tr...&n 01&: """"' ..... _ ..... ..... """
TObII ...... cr..-. '*
Tatalodter ~ II:I8r'M , ... )
&eta d~"'ccb:r ~
~0'fa'(1IIIdc:r)~
... otlIc:f ~ czpaIiCI
Tud ...... ~dJUl'
~ 0IpIitJ ~ .. (OUI):
"-*''''"' """"""""" ...... .......
R~ oqqity b'..tcr 08t:
G<oon!F ....
F .... w.-, cod dyc.r-
81
Yw fnH'. J1 1m
• • .., ...
>
• (9) -,
(l.'Zl)
(1lIl)
'fear £..dod
I.e 3Q, 19';(1
Aqpti
•
" ,.
111
(H')
C'"
\
T
c
'" . , ..
.. --...
....
-.., -,..
r
...
i.;;
~ ..
,.. ...
C
C
c
a ,. ..
I
I
or"
CITY OF PAW ALTO
ENTERPRISE FUNDS
Enterprise Funds ll!e used to account for operations (al that are financed and operated in
a manner similar to private business enterprises -where the intent of the governing body
is that the costs (ce. expenses, including depreciation) of providing goods or services to the
general public on a continuing b.... are financed or recovered primarily through user
charges; and (bl where the g", .. rning body lu:s decided that periodic determination of
revenues earned, expenses incurred, and/or net income is appropriate for capital
maintenance, public policy, ltlaIIa8ement contrnL accountability, or other purpose,.
A separate fund is maintained for each of tile City-owned utilities, each of which is a self
supporting activitj that renders services on a user charge basis to residents and businesses
located in Palo Alto.
The Qty maintains the folJowing Enterprise Funds:
• Water Fund
• Electric Fund
• Gas Fund
• Wastewater Fund
• Refuse Fund
• Storm Drainage Fund
82
•
\
-----
em' OF PALO ALTO
ENTERPRISE FUNDS· COMBINLNG BAl.ANCE SHEETS
(in thousands of dollars)
Jyne:;O 1991
~ ~
As"",.:
Cash and cash equivalents $ 2,373 5 53.235
('-"'ill with fiscal agent 105
Accounts receivable,net 964 8,472
Prepaid expense ~ ---..ill
Total current assets 3,679 62,061
Property, plant and equipment, net ~ ...61.ll!U
Total assets ~ U~~
Li. bililies:
Accounts payable and accrued liabilities 555 3,666
Accmed salaries and benefits 40 152
CUrren! portion of revenue honds, net 33
Current portion of caplt.a.I lea.se obiigatloll.'
Current portion of advance due from general fund
Total current liabilities ~ -1.lli
Accrued compensate<i absences 72 65
Self insurance 77 3()9
Revenue bonds,. net 302
Capital lea.se obligations
Advance from general fund
Tot.a.I liahiliti .. ----1!! ~
Fund Equity.
Retained earnings 12,701 ID9,876
Contributed capital ~ ....HMl
Total fund equity ~ 124 537
Total liabilities and fund equity 521.129 ~129~
83
~
511,708
118
1,495
-...l2{i
13,617
..H.ill
.m.m
1,576
63
36
....!.ill
i3
93
340
...l.1.S1
22.319
-im
.2.U.ll
mm
•
" , -".
c
c
c
C
I
I
'", " :
.;~';
~ ... ~~
--"
""'. ..
.,
--~ . -',
. :.
..".~-~---
!I ,
~ ,
..;
)l "1
~
·1
-
i , ..
;j
Jucs: lO 1221 Totals
Slorm JllIl~ 30,
W3.4jtew3teT IWlI& Drainage 1m .l.22!l
$ 5,184 $ 5,895 $2,514 $ 8O,!I09 $ 71,399
~ 745 968 3,064
l,2n 1,054 162 13,41.9 15,153
J ---1lI8 ~ -2Jl
7,3(J'J 6,949 2,676 96,291 90,528
"'1 -~ -.J.:Ml _t.m 155,568 146,049
-, ~ ~ ~ $2S1.859 $73 fi5TI
1,221 809 9 7,fW1 5,824
114 30 6 405 381
621 690 579
15 15 256
.l.ill -Llli ---
, ~ -..B.H ...l.m IQ.J§I! -1.lM!!
106 8 10 334 384
251 76 (4) 802 950
10,948 11,590 14,218
15
-ID. ~ ~
8 ...l.U2l --2.lB ..2..lS8 23.839 ~
10,921 13,758 1,755 171,330 156,744
~ ~ ~
~ ...l.11i8. ...LID mAlO 211 874
~ 1W2li ~ ~~1.1~ 5236,S77
84
-·-~-_1Ii
•
< '~-----'-... ,-< • ~. >-. "~-' ....,...~-------~,--.,,~
CI1Y OF PALO ALTO ,..,
ENTERPRISE FUNDS ... , .
COMBlNlNG STATEMENTS OF REVENUES, EXPENSES I A.'m CHANGES IN FUND EQUITY ; .. I
(in tbousands of dollars) L. ,
•
• -I
;.; I·
Y"u: End~d lunc: :iQ 1991 f~ ~ Ekrn:k Qas ,.. r ....
Operating ..... eDu.s: ' . I "" Sales of utilities: ,
Customers $ 8,365 S 60,954 $16,512 ... [ at)' departments 768 1,573 431
Wastewater treetment
Service connection charges and ~""eUaneous 49 486 171 r Other revenue ----ll1 --1.J.ll -----2.l ..
Total operating revenues ~ ...M...U8 17207 •
i '"' Operating_
\:.. Purehase of utilities 3,045 31,484 12,685 i
Administration and general 665 1,763 834 [ Engineering (operating) 74 425 154 ! Resource planning 402 3,126 441 -Operations and maintenance 1,371 4,530 1,154 r-1-, Depreciation and amortization ~ -1.QU ~ ... i Total operating expenses ~ 440341 ...lSMf !
Operating income .....uw ~Z81 -1.lli ~ f w Nonoperating ..... enues (expenses): ! Interest income 237 4,228 938 .. Interest expense (5,311) (31)
. ,
~on~ofmed~ts ( I) (24) (140) ...
Unclaimed gas rate ref'.lntl ---!" Total nonoperating revenues (expenses) ~ -U.lQ1) ..-..lSil OIl
Income before ope rating transfe~ ~ 12 fiSQ ~ r Operating transfers: ... Operating transfers out:
Rent (891) (2,326) ( 147) C Capital projects (229) (336) (216) Rate of return -ill) -1Ml1) ~)
Not operating tramfers .1!...Lll) (9,zg?) lJ...1±2) C Net income (loss) 2,415 10,391 546
Retajned earnings, begil'.ning of year ~ 22 48" 21,771 C Retained earniDgs, end of year ...lUQl JJl2.87Ji ~
Contributed capital, beginning of year 7,684 14,441 3,292 ,.
Contnolltions ~ •
Coutributed capita!, end of year ....MM 14,(i§1 ~ I Total fund equity ~ ~1241~~1 .ill.ill
85 I
'-~",,;.--. y" 17 UU
-'--..
/
Totals
XCiU: Em~~d Jll~C: X!. 1991 YeiLlS ~Ddcd .Ill DC 30. ,
WMtcr"yater IW= Drajnage l!2.l l22!l -
~ S 6,070 S 8,998 $1,578 $102,477 S 97,579
'" 58 164 80 3,074 2,537
5,027 5,027 5,419 , 14 no 67 --ill -ill ---1 _.....M.!1 ~
.., ...1.1..600 .JMl1 ~ II~Jlll 110293
r
-'
5,040 5l,2S4 51,605
"' 1,152 457 222 5,093 6,6211 1 1,397 520 2,570 2,653
3,969 4,155 -, 5,600 2,233 365 15,253 12,645 -....l.8M -1M ---tm -.llllZ
~ ~ ~ ~ 82MS
-L.6.l1 --1.ill ..1.lm ~ 27408
~ 478 606 91 6,578 6,420
(884) (25) (6,251) (1,038)
-" (81) (246) (300)
~
~ ---5.QO -2.1 --ll -llIZ
-L.lli -ZJm ...l.ill. -.n.m 32 S8S
i
(68) (2,664) (6,096) (5,697) I I (59) (300) (46) (1,186) (528) r
--ill) -ill) --ill) ~) --La.m) I
i
-LU2) .12.m) -ill) {lSJJZl (14 998) f
• 1,072 (944) 1,106 14,586 17,587 i
-' --2M.2 -H.1Q2 --.M2 IS6,144 139157 I
..10..221 ..ll.ill ..1.lli lZ1,332 156744 I ~
29,713 55,130 55,116
J.MQ ~ 14 I .1~ S4i,§~ 5S 132
w.m 1.llID 11lli U2S.o20 S2!1 874 I
c I 86
.' .........
CITY OF PALO ALTO
ENTERPRISE FUNDS" COMBINING STA1EMENTS OF CASH FLOWS
(in thousands of dollars)
Ye:a.r: End~d lUD!: XI. 12.21
lYAill ~ ~
Cash flows from operating activities:
Operating income $3,310 $20,787 $1,525
Adjustments to reconcile operating income to net
cash provided by operating activities:
Depreciation and amortization 432 3,013 414
Changes in assets and liabilities,
(Increase) decrease in accounts receivable 214 1,192 224
(Increase) decrease in prepaid expenses (342) 265
Increase (d=ease) in acoounlS payable,
accrued liabilities and accrued salaries
and benefits 139 181 838
Increa", (decr~a.se) in BcmJed self insurance (15) (51) (21)
Increase (decrease) in accrued compeU>alcd
absences ----lQ ----'8.2) ~
Net cash provided by operating activities .J.lli ~ ~
Cash flows from noncapital financing activities:
Operating transf.n;-out to other funds "(l.lll) ~) j1746)
Net cash used in noncapital financing
activities u.u1) ~) ~)
87
•
,
c
r" ..
C
~
I" -
'" ... -, -
""' ...
r
100
C
.1 117U
-,
. ,
-'
, -
-,
"
,-~ ,<". ,
. ·,".0
Year EnM" Juac 30. 1991
Wastewater &fJJ.s. Drajne .. ,
$1,617
1,834
(34)
(6)
840
(41)
~
..-UZl
--1.U2)
S 1,531
236
75
252
(is)
--OJ
...l.lI2li
-Wll)
.n.lli)
$1,072
(214)
(4)
~
-221
..J.SI)
..J.SI)
/
Totals
Yw=s Ended June ~
ml .l2!l!!
Sl9,84l S 27,408
5,,29 5,207
1,734 (2,429)
(83) (518)
1,036 (20)
(148) (542)
----1W (811)
~ ~
US,337) 04 998)
.ill.m) (]4998)
(Continued on following page)
CI1Y OF PALO ALTO
ENTERPRISE FUNDS . COMBINING STATEME."'lS OF CASH FLOWS, Olnticued
(in thousands or dollus)
Cash flows from capital and related financing
activities:
Acquisition and construction of capital assets
Principal paid on revenue bonds
Proceeds of refunding bonds
Paymenl 10 escrow agent
Principal pald on capitalized leases
Interest paid on revenue bonds and capital leases
Other nonoperating gain (loss)
Olnrributed capital
Advances from General Fund
Net cash from capital related activities
Casb flows from investing activities:
Inte!e5l and dividends on pooled investments
Ne! cash provided by investing activities
Net increase (decrease) in cash and investments
Cash and cash equivalents, begi:ming of year
Cash and easb equivalents, end of year
89
Yea; Ended Junl!:W 1991
$(1,321)
(1)
u.m>
WlZ)
......l:J1
......l:J1
382
...1.22l
.w:u
$(7,091)
(29)
(5,311)
(24)
220
LW.U)
~
~
7,737
~
~
$(1,408)
(34)
(31)
(140)
mJ.J)
~
~
8.."9
..m.m
~
, ' ..
C
M
10;
C
C
C
C
C
c
a
I
, , -,
I -
I -,
!..J
-; , -
I --'
-,
.
Year Ended Jyne 3Q 1991
Wastewater ~ ~
$(3,280)
(904}
9,650
(11.180)
(904)
1,340
..(S.21lI)
$(1,993)
(256)
(25)
(81)
.n..lli}
~
~
(2,548)
~
um
S (355)
~
.-m
~
~
1,832
~
~
90
•
,.,.,. t1
Totals
Yean Epdr4 JUDe 30
1m l22Q
$(15,448) $(11,099)
(967) (553)
',650
(ll,lJO}
(l56) (233)
(6,l71) (1,038)
<l4'} (205)
1,560 14
---1l -ID
<POS7) 06692)
-Lm .-UZl)
-Lm .-UZl)
7,414 6,958
....liMJ ~
IIJ.l21 Ii 744~
/
CITI' OF PALO ALTO
OOMBlNING BAlANCE SHEETS· WASTEWATER FUNDS r
(in thoasands of dollars) 1.1
/" , ...
Totals
llm!:JQ 1m lliGllj Xt ~
Col!ecrjpp Tn;afm!inr Elj m inutjQP5 l.l!2l 1m
,
loi
........ , '"' Cash and cub equivalents S 266 I 4,918 I 5,1114 S 3,!!04 ....
Cash .. ilb &c.I IIFJ1t 745 74$ l,843
A""","" rca:ivabIe, ... 750 S2:l l,zn 1,238
PTepoid-~ -ll --1JlI! -.ll!i! ~
Total current asset!: l,05O 6,25Y 7.3O!1 7%1 -
I7cpcrty, plant me! cqulpm .... lid 15,569 32,357 .,om ~.480 r
I.-..-. 438 S(438)
Ad.....,.. to ot!= fuDdo -lm .D!W
Tcul ...... nw ~ .l!.ZW ~ ~ -UabWlIa;
AIXOUDU peyah&e and ra.c.crued .fi.abilitics 72 1,149 .,%>. 379 .... , '
Accrued sell insurua:: I.. A=ued oalari= me! _ 34 III 114 116
Aa:rued compeasatod abseo= ... ,
CUtreru portio.a of rcvea~ ~ aeI ----m --.RL ----U:i ,
~
ToUl c:mre!I1 ~ --Z::! -llIl. ....l.ti6 ..J.!UlI -Compc .... ed .me.= 75 31 106 95 ' ' ...
Sell insnnmce 61 184 25' 2'12
RcvtD'JC ~ nel. 20m 8,176 .0,5>43 13,508 -Advances frem other funds ---..lQll .£l!I!l) -T a<al Iiabililios ....lM.l .lQ.W -=l -Ym ..l!2l.1
r-
Fa •• Eqlotty.
Retained earuings 4,669 6,252 .O,9Z' 9.849
Confnowed capital ....a.2:U ~ .ill8) ~ .l2.lli
Toul fund "laity ..l.Ji>lJ .lIl.22l! ..illIl) .JJ.ru ..J2.102
TculliabiLtie£ aDd fwod equity $17057 ~ .!LZW wm ~
C-,
, ... I
C I 91 ~ I
---.~----~~.--. -~~ ..... -":-; "Sf _.;;:,$ Ptl
•
\
· .... _------,-,------------,-
,
CI'IY OF PAW ALTO
COMBINING STATEMENTS OF REVENUES, EXPENSES AND
·,-1 CHANGES IN FUND EQUITY· WASTEWATER FUNDS
~i .J (in thousands of call",,)
1 .; Totals
Yean Eadd
fill Ensl~d ~lmli ~ 1221 ~lm;; :lQ
CcOeqjop Ir= Eljmjnatjp!l$ 1m l2ZIl
-O!>on>tIac ........ : , Sales of utilities:
a.stomcr S 6,0'11) I 6,87li S 4.922
CUy departmeuts 51 S3.3"9 $(3,322) 51 2S -WiLStewater tre.atmC!lt 5/ill s;m 5,419
: Sernc. connection cIwp and -misceDueow. 14 14 I
Other TtVCn'tl:" ......lU -.Jl2 ~ ....B
TQtaJ operatiDg rc"C:o.~ ~ ...M1l ..Glm) ..l.I.Ii!I!I ~
()ponIiacapeDHS: '. P=hase of utilities 3,322 (3,322)
AdmiDistra_ and goo=! 404 748 1,151 1,618
EIlgineering (operating) 149 1,248 1,391 1,101
Ooerations IUld matctenancc; 73'2 4,868 5,600 5,256
DCpreciatioa and m.ortization ~ ....l.m ...l.Il:I ....LZlLl
To<al "P<'atios cxpe= ~ ..J.l.l2 .D.m) Jm ~
Operating income: ~ ~ • .1A1Z ~
NOGopc:ra~ ft'Yc:D1In (apcues):
lDterest income 37 441 471 623
Interest apcJlSC--llli) ...1!tI1) ...JlIM) ...JZJijJ
--'
Total _rating (ezpe=) -CiSll -W!il ~ -D!tl)
IDcomc: berorc operating
tnns.f'en; -22l ~ ..Llli -W
OpmLtillC transr~:
Operating transiers out;
ReD! (68) (68J (67)
:l! c.pllal proj .... (73) I' (59) (120)
Rate of rehuu --W) -ill.l
-. Net operating transfers ~ .-..ll --.ill2) ....ill1)
Net mcome 748 324 1,072 418
ltetaIoed: earalngs, beginning. of year ..J.2ll ~ JM2 ~
JtdaJned earninp, end of yea; ~ ~ ...1..!l3..ll .....2.M2
Coal1'lbul<d ..... Ia~ begi:"""g of)= 8,945 21,2{)6 (438) :9,713 29,770
"" CootribotWns ...lJ1Q ..1.l£l -----l@
c.o_ co"'lal .. d of J'Ul" ~ ~ ~ ~ 12.1lJ
Total 1m><! "'lWty 1ll.W m!!ll ~ Ul..W ~
92
--_ .. _--,_.,--__ t.. __ . __ --.-.--,--,,--,.-, ... ~ .... --. ..
"I
t ' ,., • k t
'i CflY OF PALO ALTO
,.
i.,.i
,
COMBINING STATEME!,>'TS OF CA~H fLOWS ...
WASTEWATER FUNDS :..
(in thousands of doll",,)
:-
oJ
ToWs ....
Year Eodod Y:"..a:J1 Eoded ..
1l&Z 3Q 1221 ~
CgJleqjgp Treatment 1221 l22!I ,.,
Cash flows from opera1iDs acti-.'ities! .. 0peratiDg mrome 11,081 SS36 11,617 $908
Adjustments to rca.-.adlc opera1iDs mcome. to DCI cash ,'" prooidod by opera1iDs .-
Dep<ecioti= aDd amortizatioa 559 t,Z75 1,1134 1,183 --~ in ...... aDd Iiabi!W=
(\=ease) cI== in acco_ t=MhIe (US) 01 (34) 244 -(lnaease) ~ .... in "",paid expc .... (2) (4) (6) 8 , -ID=ose (d=easo) in -=_ payable, .CO"Ue<I
&.biJities aDd a=ued ..w;.,. an<! be .. 5ts 14 826 840 (116) ,..
~ in :tlcaucd d insurut.e (0) (31) (41) (158) ,
lD=ase (dc.=ase) ;" aCO"Ue<I """ponsaW obse= ---4 -1 ---1! ~) ...
Not am "",,;<Ied by opc..nng &thl1ics ..J.:Zl ,l.fUl .J.lli .l.ill ...
C>-,), flo... &om ","""pita! financing activilieso L.
01'."'" Iraosf=-out to othu Iun4s -Wll ~ ...Jll2) .-lLll) rl
Nd eash use<l in ~ 6nanciag activities -Wll ~ ...Jll2) -U~) ..
Cash flo... from apiral and ,dared 6nanciag .<tMties: .. A<quisitioo aDd coostructioo of capiW ...... (1,215) (2,065) 1J,%8(l) (1,332) ... Principal poi<! CO ..,.. ... bonds (211) (687) (904) (504)
Proceeds of utility revenue bon<::.s 3,039 Mil 9,650
I'" P<lymc:tl! to ~ow ~n1: (3,5W) (7,660) (11.IHO)
Interest paid on r.evenue bonds (m) (678) (904) (9'..6) ...
Colltribute-d a.pital 1,340 1,34(J (tL')
Ioaease (cIe=ase) in",,-= from othcrlunds -100 --'J!m I"
Net cash used iD capital retated aaivitiea u.ml {M12) !U1I) !bm'} ..
Cash (lows from im"et.ting actiYilies: r '.
1II1Clc:.st and dividends Oll pooled investments ---ll -ffi ~ ~ ...
Net casJ:. provided by iDvesting actMties ---ll -ffi ~ J1;l
1"1
Net dcal"4;$C in cash and Wvwmcntl; (433) (185) (718) (458) lot
Cas& ODd cub oquhaIeo", beginolog of yea< J21 ~ .iMZ 2W C Cash ..,4 cub oquIftleols, ODd of year ~ W§.} ~ S6 647
C
93 a
--"'""-* '*('1.
-
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•
CITV OF PALO ALTO
L"ITERNAL SER\IlCE F!!NPS
The Internal Se!Vice Funds are used 10 account for the financing of goods or services provided
by one de;>artment or agency to other departments or agencies of the City on a cost
reimbursement basis.
The City's In:ernal Service F"."ls are as follows:
• Equipment Replacement Fond -established 10 acwunl for the accumulation
of reoources to provide for current and future replace:nent of the City's
motor vehicle equipmenL
• Vehicle MainIenaD"" Fund -established to account for centraJ maintenance
se!Vices on all City-o"ned vehicles_
• Printing Senkes Fund -established to account for central duplicating and
printing servioes provided to City departments.
• MailiDg Senkes Fund -established to acoount for central poslage and
mailing services provided to City departments.
• General_III, aDd IDSllI'IID<e Fund -established :0 account fO£ employee
compensated abse!lCe5 and health benefits, and the City's self-insured
workers compensation and general liability prc-grams.
94 ---
CI1Y OF PALO ALTO
INThRNAL SERVICE FUNDS
COMBIN1NG BAlANCE SHEETS
(in thousands of dollars)
Assets:
Cash and cash equivalents
Accounts receivable, net
Int •. rest receivable
InventOl)'
Prepaid ~nses
Total current ~ts
Property, plant and equipmeDt, Det
Total assets
Liabilities,
Equipment
Replacement
Fund
$ 5,026
I
8
5,035
~
Ul.22Q
Accounts payable and accrued lilIhilities
Accrued salaries and benefits
64
Accrued compensated absenccs(l)
Accrued self iJJsuran<:eil)
Capital leases • current portion -M.l
Total =ent llabili';es
Compensated absen=;(1)
Self insurance(1)
Capital leases
Total liabiliti ..
Fund equity:
Contnbuted capital
Retained earnings
T oeal fund equity
Totalliahilities and fund equity
509
Cl'See Note 2 to Notes to Combined Financial Statements.
95
June 30. 1991
Vehicle
Maintenance
Fund
$119
1
121
241
lID
69
20
89
Printing
Sen-ices
[1101l
$lOS
lOS
.l22
~
7
5
....z1
33
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~
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-,
~
~ '> ,
,~ -• • -'
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11
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1.Y~ .i01 1221
General
Benefits
Mailing and
Services !n.s'irat1Cf:
Fund I'lm~
$29 $12,715
24
---D!l
29 12,869
U2 w.w
1 291
711
4,268
2,690
1 7,960
2,145
2,528
J .ll.ill
~ ~
~ ~
U2 1.l.W
Llta.l~ Jl;m~ ~
l22l 122ll
$17,994 $15,138
U 49
S
III
---1JQ ~
18,279 15,193
-1.m ~
m&I 1.2~
43l 444
73(; 759
4,2/iS 4,010
1,690 2,600
~
8.l'92 7,813
1,145 1,991
1,528 2,8SO
J.m
JSMl ~
4,877 4,451
~ ~
~ -MlM
~ ~
96
• , ' ....
CI1Y OF PALO ALTO
I!"ITER.I\,(AL SERVlCE FUNDS
COMBrnING STATE~lEr't;TI OF REVENUES, 8O'ENDnl)RES A.?offi
CHA."'JGES I!'I( Fl..'ND EQUTn'
(in tholWUlds of ~.)llsn' I, ...
'IlDC;o 1091 :-
~
Equipmem Vehicle -ting ...
ReplaoemeQI Mait:tell2.DCe Services ~ ,
fllild Ellnd ...hwL ..
~........., r
CllarJes for .ser.";ces llW tuM = -Tow operatinl revenues .l.a!i! ~ Jfil
o,.oruJq-
,r""'.
Admi::\isttatiGll. and geDeTal 28 255 ~
Opemions and ma.int.enaD¢e 1,632
Se~-imuro<! losses :-
CompeM&ted tmenccs and omer bt!Wfits
[)repreciadoD I.Dd amonizarlOll. Jm ...J
Total ~ratin& expenses ~ ~ ~
Opera.ti.o.r mcome (loss) -fi1l --ll ....!
NuopenIIlq ftWIIIMS:
mlerest illamle 308 13 2 L Interest expense (72)
Gain on diopo$aI of _ ...... 178 15
O'.hez inanne ---! -A
Total IlOnopera~ :i"eY'e%IUCS ....!JJ ---Ll ..2l :..
lncomc (loss) before opcradq: tramfcn .lJlll ~ ....1J.
Opondq trudtn; ...
Opeminl transfer in -12!l • -Net incol:De (10$$) 1.411 49 1:1
Retalaed anWtp,. be.r;imJ.inj: of year-..l.m
,.
Capital roD01Dllted from Getleral Fund ...
Assumption of long-term QJmpensatcd r' i
absence:> an:! imunmce .. I RKaiMd ana1qs, -e1Od of year ~ ~ ....1J. • ,
~ capital, beginning of year 4,437 I' ... ! • Contributioll5 -Z!ll ....ll!l ...In ..
CoUrIbutecI c.pltal, end of year ..!J.JB ---W ~ 0 TGtal fuIJd tqu.ity end of year ~ LW 1W
C
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97 I
-
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-.
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, .. '
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--; .,
'.
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':
~
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I illll~ 3Q I~l
!
GenoraJ
Ik.c-efiq;
MaiJiD& and
Servi~ rn.unno. I,g!.iil.llolm; JQ
..Ew1<L JuoL l.!!l lW
~
J -Ul w.786 w.m: w..ru
.m. .l2.1!§ ~ .Am -,
.,; 294 1,103 1,AO 1,242
1,1032 -1,475 ,...,5 1.559 1 20,690 20.-.0 II,9JJ
-" --UJ7 ..l.lIIl
~ = ~ ~
Jl JMW .Jl.W) -~ 656 -21G
(71)
aJ m
-Uli ~
-l ..1.2lIll -l&! --ll!i
~ --LllW ----W -.J..l!6i
~
-ll!l ---1m ~
28 (2) I,5IJ 1,271
---1li -.J.W -1..ffi
5,190
Ii ~
~ -Zl!i -.Mt!i ~
• .. -451 4.419
~ ~ --l.1.
--U22 ~
.u\ ~ ~ 1JJl!i
~
98
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Jitl$
....
CI'IY OF FALO ALTO b
IJ\TERNAL SERVlCE FtINDS
COMBIN1NG STATEME'ITS Of CASH no.'S r-: (in thollWlds of doUan) j., ;
...
J!me.w 1991 t..
1
EqWpmeul Vdlidt -tina r
Re:p1acemect MaiatCOWlo::.e 5e'rvices ...
E!.Illd ElIIlI~ ...f.wIlL
I Cash Dow! from operatiq .a:vitics.: r
Opo"'tin& ;.....,. 0"') S 6<11 532 S • ""
I Mj\4".JDew to ~c opcntiq mcumc -I 0...) "' oot cad> provided by
I (used ill) opendaz activities: ...
Depreci.atioD aDd: .amonCatioc. 1,229 • 0Iaqa. m UlCts aDd l.iabilitics: r'I
I
Drec:rasc (lDC2"CUC) in ac:c:owm;
rocoiYabI .. (1) ;..,
t.cr.... in prepold __
lDcrease iD ~ (121 ) ,..
I I=asc (-....) in ICCOUD" payable. .. I accrued nabruties and s.ccna.ed
salaries and beDCfits (70) 89
Inaeasc: (decrease.) in.ac:rued se!f r' I -..... I..' I lDaease in acaued al[~pensaled
obseD<OS ..
t
1Dcruse in interest reoetvab1e --Ll!) j -Net c:::uh prorided b.r (used bl)
operatiD& activi~ .l.lli m ....u r )
Cash 50ws from OODCIpital fiDanciq i.i
I activitia::
0p0miD& uamfen in ~ "" No' aIIb pnMdod by uoocapiW
, -6aaacing aaMtics -l2!I . ,... Ca.sh flOlNS frem capital aM: related ~ fin&Dc:in&: actM~ -! Ac:quisit:io1l: and CODStnlC'tior:; of capital ...... (2,m) (186) r-I
Othe, """"1"' ...... pill 17B • 21 L.. I CoatJ'ibuted capital 201 103 122
Iwumpt:ion of !mI&-lerm o:nnpecmted I
I absea.c:es aDd Jell ~ liabilities I'" I Net botrowinp 1!Ddc.r c:apiu.I lea.s.es .lJlIi.l .llQ ...
No' cub provided by (US«! iD)
capital uiated activities .....ll2! ..1!!1 ..n ....
Cash flow$ from iDve5tia& activities.: t.,.,
wtcte51 &nd dMdeGds on pooled investmcc:ts -lIlI! ....u -.2
Net cash pnMded by izrvc:5tiol ~
a.ctiYities -lIlI! --1l -.2 ...
Net inc:reuc: in cub aDd iDvc.stmenlS 2,625 119 92
Cas, ......... eqaInIoooIs. bopnniD& of y= ~ ....u C
Cull ucJ cad eqaInIoooIs. ~ or y~ar u.m l.ill. 1l.Q!
99 a
....,",--. ·-O""'-.... ,jWt .' rt '
t II
.,~;
,~,: .. ' y,,,",,,
.r.lO.a2l
Go....,-.j
&ntet'i~
Moruoc w
:><--.. I_l.11~1Q.
~ ~ 00 l2iQ
,... W $(3,'II:l) J(l,lU) S 6115 ..
1,lj1 l,,11Jl · . , -:l3 13 (<0)
~ (12<) (lU) (6)
· !
..; (Ul)
(SO) Q5) ~0<4 -(l'ill (W) 5.480 -. 4U 4U 11,001
-W
-,
.Jjj .LMlI!) ..(US) ~
-.
..J!I! -~ _.JIll
..J!I! ......m ~
~ • (1,4Sll) (2.281)
2.J2A 1,5l1 114
Qj 5.222 -,
(4,955)
JJll , ...t.U! ...om ~) -
~ .-l ~ _..$ ...Jl!l ,
,j
J ~ ........m ~W
2'l (9) 2~ 12.818
~ .J.,!.UJ ..WJi
US w..w. J.U.W ~
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CI1Y OF PALO ALTO
TRUST AND AGENCY FUNDS
..
Tr.J5t and Agency Funds are used to ><:count for assets beld by the City in a trustee capacity
.or as an agent for individuals, private organizatio::JS. other governments .&nd/or other funds.
The City uses Expendable Trust Funds to account for programs from which the fund balances
and revenue msy be expended for PUipOSe5 sp<cifieaJly design<Jed by the program agreements
Agency Funds are CU5todial in nature and do not involve measurement of results of operations.
The City maintains its deferred compensation program activities in its sole Agency Fund
:~j ..
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10!
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CIIT OF PAW ALTO
TRUST AND AGENCY FUNDS
COMBINING BAlANCE SHEETS
(in thO\!Sallds of dollars)
June 30. 1991
E&peOOable Trust Funds
Hazardous DonatiolL5
AsoeII:
Cash and cash equivalents
Total assets
UabIUU .. :
Accounts payable and other accrued
liabilities
Deposits payable
Due to participants
Total liabilities
Fund equity.
Fund balances, unreserved and
undesignated
Total liabilities and fund equity
Materials Animal
SchoJarsh ip Thajcioe Services
112 11 iD2
III U ~
hJnc 2Q 122] .-Developer .-. , Expendable Tnist Funds Payments: Deferred
.J Assets Red Emironmental Compen.....ation IQWS 11.111C XI.
~ BiI1l!!m Revjew Agency Fund 1m 1m
ill L Illi lli.OO ill..M2 lli.8M
m L liQ! WoW ~ ~ ,
-'
-. 22 25
79 79
JUMl ..ll!.!M1 ~
...uu JUMl ..ll.M§ ~
. ,
51 ..u ~ ~
ill 1.,;.. illl ~ .iI.U!!! lli.lli
103
?.-, .
....
ern' OF PAW ALTO
EXPENDABLE mUST FUNDS
COMBINING STATEMENTS OF REVENUES, EXPEND!Th'RES
AND CHA.'1GES IN FUND BAlANCES
(in thousands of dollars)
y eAr En~~d .!~n~ ~Q 1991
Expi:ngahlc IDlS! Funds
Hazardous Donations
Materials Animal
$tho] arshil' Trainini Seryices
Ren!noes:
Interest earnings $ 1
Other revenue m
Total revenues --1 ...az
Expenditures:
I'.blic safety -police 22
Social ... rvi=
Total expendirures .n
Excess of revenues over expenditllIes -1 ~
Fund balances, beginning of year ..ll U --&
Fund balances. end of year ill U oW
104
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-.
-.
fiat Ended June 30. 1991
EJpendablt Trust funds
Assets Red
~. Bil!l!sm
68 21
105
Totals
Yean; Endeo
Innt 30
$ 1
..llI
..ill
111
$1
.11
.1l
J
j
.11
----·--IIIiOIIiIIIII.
CITY OF PAW ALTO
DEFERRED COMPENSATION PROGR<\M AGENCY Fl1l'.'D
STATEMENT OF CHANGES IN ASSETS AND UABlllTIES
for the year ended June 30, 1991
(in thousands of dollars)
Bala!lces,
July 1,
1990 Addjtjon:. Deductions
Assets:
Cash with fiscal agents:
The Hartford $12,~1 $2,589 $1,149
lCMA 2,679 1,042 134
Great Western Savings -.Lill --1l!! -..l.42
Total cash witb agents ..l.6..ill .lll.2 ~
Total assets ~ Wl2 ~
Liabilities:
Due 10 participants ..l.6..ill ..11l.2 ~
Total liabilities lli.lli ll.Zl2 1.l.m
106
BolaDC<!"
June 30,
1291
$14,391
3,587
~
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-,
II
, --
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CI1Y OF PAW ALTO
GENERAL FlXEP ASSETS ACCOINT GROUP
The General Fued Assets Ac.."OUDt Group includes :h= fixed assets which are used in the
~rl"ortnan<e IX general governmental functions and ucludes the fixed assets of the
enterprise and iD.temal service funds. Fixed assets in this account group are stated as
historical cost, or estimated historical eo<t if actual historical cost is not available,
107
•
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,
~
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CITY OF PAW ALTO
SCHEDUlES OF GENERAL fiXED ASSETS -BY SOURCE
(in thoUS3I\ds of doll",,)
.lLlnC ~PI
l!2l 1m
General fixed assets:
land and improvements $ 57,062 $50,496
Bmldings and structures 34,394 34,016
Equipment lQ.275 ......s..:m!
Total general fixed assets $101,731 m.m
IDvestmenl in general fuod a,..ts from:
Investment in asse!S, beginning of year '3,282 89,077
Investment in assets acquired from current
activities, net ~ ~
Total investment in general fixed """ts 1l01.1~1 lli.m
108
..
ern' OF PAW ALTO
SCHEDULES Of GENERAL FIXED ASSETS •
BY FUNCllON AND ACITVITY
(in thousands of doUars)
June 30. 1991
Admlnistratiotl!
City c10rk and ~lIIlcil
City lIlalla3er
City attorney
City auditor
Flnanre
Personnel
Information resources
cnneral government
lotal admini5tran()D
Public ...rety:
Poll""
Fire
ColllJllunications
~ servi(es
Totalpublie AAfety
Libraries
Parks, rccreation and ~ll~lro
Paddng facilities
Open space
Housing
Total general fixed assets
109
Land and
lmprpvtme.ou
392
.-JB.
-4.l!1
245
20,943
ll,876
ll,78Z
..Mll
~
Buildings
and
Structures
1,513
~
.J.2.U
3,132
8,767
8,096
~
-,
~ "-!"
~~ ,I
~ ,I
~ "' ~ -, ~ 1 , -
~ : -
1
June 30,
l~l JUDe ~
.J Eqyipm'Dt 1221 l22Jl .,
S 149 $ 14\J S 116
..,j 135 13S 93
J 144 144 143
44 44 26
831 831 757
" 132 131 104 : 1,511 1,511 823
~ J.m Jj,lli ~
1 J:m J J2.W .l1A!iO
-. 577 S77 555
971 l,I7' 2,788
641 641 612
-' .-J1 _...m -ID
-, ~ ~ 3.ill
663 4,040 3,997
1,081 30,791 28,515
I 1,526 1l,4\J8 17,294
11,782 11,782
~ J.W -.2.ill
~..'! w.m 11DI.LU w..m
-.
..,
110
/'
em' OF PALO ALTO
SCHEDULE OF CWJ\'GES IN GENERAL
FIXED ASSETS ' BY FUNCTION AND Ac''TIVITY
for the year ended June 30, 1991
Balances,
•
M ..
Balances,
July I, Deletions/ JUDe 30,
1990
Ad.minist:r.:.tion:
City clerk and council $ 116
City manager 93
City attorney 143
City auditor 26
Finance 757
Personnel 104
Information resources 823
General government ..l2.l2f!
Total administration ..lM2!l
P.~blie safety:
Police 555
rite 2,788
Communications 612
Animal services ~1
Total public safetj ~
ilbraries 3,m
Parks, recreation and cultul'e 28,515
Parking facilities 17,294
Open spaoo 11,782
Housing ....2m
Total general fixed assets wm
III
Additions Transfers
$ 42 $ 9
50 8
12 11
20 2
135 61
36 8
810 122
..l..ml! ..ill
.1.ill ~
66 44
160 70
77 50
~ -.J
--ill ..ill
93 50
2,406 130
4,2()4
~ 1ZQJ.
1991
$ 149
135
144
44
831
132
1,511
J§m
19,141
577
2,876
641
~
~
4,1>40
3{J,791
21,498
11,782
-.un
i12 11U 1
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CI1Y OF PAW ALTO
GENERAL LONG-TEEM DEBT ACCOUNT GRO!TP
Genera1long~term debt is the unrr..aturtd principal of bonds. warrants, notes or other forms o(
noncurrent or long-term general obligation indebtedness iliat are not specific liabilities or aoy
proprietary fund or trust fund, and noncurrent liabilities and other long·term commitments of
the governmental funds.
112
~
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CTIY OF PALO ALTO
GENERAL LONG-TERM DEBT ACCOUNT GROUP
BAlANCE SHEETS
(in thousands of dollars)
June 3Q
Amounts available and 10 be provided ror
retirement or general long-Ierm deb!:
Amount available in debt service funds
Amount to be provided for retirement of
general long-term debt
General Iong-Iernt deb! payable:
General obUgalion bonds
Certificates of participation
Special 3S.'>eSsment debt .. itb governmental
commitment
Capital lease ooligations
113
$ 3,994
~
~
1,225
S,U5
8,649
~
m&!2
$ 4,475
~
~
1,300
5,275
9,136
..ti21
~
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CITY OF PALO ALTO
GENERAL LONG·TERM DEBT ACCOUNT GROUP
SCHEDULE OF BONDS PAYABLE
for the year ended June 3D, 1991
GcaonJ obijptiOD hoods;
Golf COUI'$C bon&; ~ued:
C3/01/'1S
Special ........... boads:
09/fJ2/69
04/'12/68
04/'12/68
01/02/75
05/02/77
OfJ/02f77
OS/(12/8/J
U/f!2/g].
03/XJ/81
I2J]jj(89
ToW speciaJ ........, ... bonds
CertifiC3l.es of participatioQ wr..d:
10/01/&3
Total bonds aDd ccrtilkates
(in thousands of dollars)
Illterw !citial
..&ow.. ~
5.0%.00 3/1/88'"
6.90 1/2/71'"
550-6.00 7i2m~)
538·6.00 7/2f77'<
7.()()'751l 7t:./8S-Jj
6.00 None
~.~7.7S 7/2/g?IJ
7.25-9.50 7/2/'Xf"
10.95 7/2/iIJ(T)
6.1\).9.25 9/2/96'"
5.75-6.90 9/1/00'"
6..5(}.9.50
(1) Callable in inverse numeric.al order or matu.-ity at par pius .. premium of .25% for each
year from redemptiOD to maturiry dare.
(7) Callable m izwerse numeric..aI order of maturity at par.
(l} CaDable in :cumerical order at 105% of par.
'~I CaIIable i:a inYeTSoe numeric.al order of maturity at par plus .5%, plus .25% for tad;.
year from redemption to DliltWity dat,:.
(:I) C.aIlabtc ia iDvcrse numc.ricaI order of maturity at Far plus .. pICtnium of 2% bc:~
0Cl the inlLia1 caD dare. The caD pricC' decIin=s s-ubsequenc to the initial date.
114
FISCal
Yea:-of
MOlJIIilx
=-03
)992·93
)993.94
1993-94
2OCt).()1
!992·93
2002-03
1995-96
1993-94
2007.{l8
2006-07
~
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100
0
C
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AmQunt of Bonds tt-lBrured
0ri&iW Qu",-",dmg Durin& the OUU'&Ddmg
Wye July 1 1990 Yw Jupe 3Q 199]
S1,!'OO 1..I.J!!I W ~
....I.JOO ~ ...u:I.:i
329 56 19 37
390 100 2.5 75
975 2<10 55 185
420 29() 20 21\l
32 IQ 3 7
791 59S 3IJ 565
175 100 15 85
153 7() 15 55
1,325 1,255 4<J 1,215
6,420 ..M1ll ~ ...AU:i
...i.U!i ~ ~
(f) CanabIc: in :IlJlounts not less than $20 at par plus a premium of 2% be.gj.n.n.Lng all the initial caD. date. The
can price decline!. subsequent to the initial dat~.
(1) Canable in inverse llumericaI rn-dcr of maturity at par plw; • premium or 3% beginning OIl the tnit~ can dale.
The can price declines subseqllec.t to Lbe initial date.
115
•
. ,-'"
"
em o;r "AU) .u.ro
GENEI .... L \..ONG-lCl<M OEllT ... <::coL ..... GROUP
SCHEDULE.oF FllTURE OEI!T SERYlC'E RETIREMENTS
J\.LX 30. 1991
Boo<! ptiodpo!:
1991-[992
1992·t993-
1993-1994
1994-199$
1995-1m
1_199'7
1997-19911
1_1999
199!l-2IlOO
:zooo.~1
2OO1-20C>2
1OOl-2003
2003-2004
:1000-200$
2OQ5-2OO<i 2006-=
200'1-2001!
!load interC:S'"..:
199Hm
1m-1m
t99H~
'994-199$
1995>llI96
1_1997
]99Hm
199t!-1999
1999-2000
2000-lOOl
2001-2002
2002-2003
i!OO)-2004
~=
lOQ5-:/OO;
:m:>2007
;lOO7-2OOIl
(" .. \II<>usaO<b 01 dollan)
Special
"nnmY'DC!i
S 'IS
'IS
'IS
71
100
100
100
100
125
us
1:05
L50
• 4:!a
4)9
'5S
»0
.00
':0
4SG
49:1
SlS
ill
SlIO
64S
6lIl
6'1S
700
75()
.....tU
WU
567
539
5()9
481
~
429
401
)6'
3}7
300
~2
2<1
118
113
86
3<
.-.J
WlI!
Ccrt.i!iQitu
or
.f,rndp"tipn
S 165
185
200 m
l'5
21U m
):/5
l55
)95
430
4?!
520
51'
.1\l
~
.1()
455
.33
.Z()
399
3'1S
349
3Z()
Z8>!
2.53
21<
l1l
\.2.
72
23
~
la. We cases of variab{e. lnte~ ta.1es. furu:t int~r¢u paymtnt.5 ue ~ oc. • .c:rnnbir.atioo: of
QUl"~Qt t:att:1 &ad AlItic:ip&t«f ~
116
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CITY OF PAl.o ALTO
STAlwnCAl, TABLES AND OllIER SCHEDULES (]JNAJ lDirED)
Statistical Tables and Other Schedule, (unaudited) are included to pro,ide detailed data on lhe
physical, econorrJc, social and political characteristics of the reporting government. They are
intended to provide the user with a broader and more complete understanding of the City and
its financial affairs than is possible from the General Purpose Fi.."'l3.Ddal Statemer.ts and
supporting schedules included in L'le Financial Section.
117
•. ' 'IMi • I r •
. "-'. '.~t#.
I'.· ,
~
~
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I Fiscal
~
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
Nil!!<:
. ,
",,-',
. . ",
CI1Y OF PAW ALTO
GENERAL REVENUES BY SOL'RCE
LAST TEN F1SC~L YEARS
(in thousands of dollars)
(Unaudited)
Property Other
Service
Fees
and
~ Lim fmniy
13,853 111,383 $1,709
4,056 11,840 2,493
4,493 15,100 2,805
4,643 17,655 3,133
6,105 18,450 3,148
6,748 18,412 4,727
6,578 22,646 4,835
6,887 24,785 5,024
7,512 26,145 5,615
8,109 26,457 6,168
Includes general, special revenue, debt service and
capital projects funds. Data presented for fiscal
years 1981 to 1986 ~'3S Dot restated as a result of
ihc adoption of GASB Statement No.6.
118
Fines,
Forfeits
and
~~
S 517
659
718
789
858
935
998
1,383
1,251
1,222
4 .
-to;
c
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Fire Protection
Interest and Emergenc..'Y From .:-and Communication o..her
Rentals Services Aeendes O1-h~ I2lru
$3,578 53,059 $1,918 $ 353 $26,370
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 3,479 1,365 4,182 46,837
3,714 3,227 1,193 3,735 49,948
5,078 3,029 1,269 3,830 53,729
5,310 3,561 1,711 2,783 SS~'21
=*
119
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,
:,.. -
CITY OF PALO ALTO
GENERAL REVENUES BY SOURCE
(unaudited)
198219B31984198ST9Be19S719S8198919901991
Fiscal Y.er Ended June 30
120
El Ott1.ar
II From Ott1er AgenCies
• Fire & Emerg9:1Cy
[] Inte~ & Ref1ta ~
o Fines, Penalt'es
~ Fees !. Permits
f3 Other Taxes
• Property Taxes
•
,
'i
Fi=J
.=.
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
19S7-88
1988-89
198').!lO
1990-~1
. ,
CITY OF PALO ALTO
GENERAL GOVERNMENTAL EXPENDrnJRES BY FUNCTION
LAST TEN FiSCAL YEARS
(La !housa.,ds of dollar,)
(Unaudited)
Sl"ci>I
RC'icnuc
sod
I'1Iblk Communlry Public Social Capital Dol"
Admilli:iUllliQll ~ ~IlYi[QDm'iI' s.tm ~ JIoi<ru s.ru..
5 S,969 S 5,191 $1,349 $12,416 $ 4,270 S13,013 Sl,3OJ
s,rm 5,980 l,538 LV70 4,667 4,313 2,328
6,530 6,5.59 1,188 L"S95 4,156 3,137 2,369
5;12' 8,732 t,m 16,924 S,271 9,170 J.,97<j
6,821 11,215 2,345 18,170 6,162 6,363 1,845
'7'9 11,344 2,652 20,102 i,.559 6,679 2,728
8,510 11,.184 2,553 19,909 1:;47 ",171 2,916
11.495 7,953 = 19,293 10,098 6,470 2,789
10,910 7,800 3,065 2<1,948 10,841 5,641 2,547
11,978 6,154 ',an 12,629 11,641 9,303 3,13'
NOTE: Includes general, special re\lenue, d'!bt se.mce and capi(al project fund.;. Data preset'.fe.d for
6'!oCa1 years 1981 to 1986 was not res'ated 2S a rwJ.lt or the adoption of GASB $tatem(",nL Ko. 6,
regarding reporting far Special As,.o;ess.mel'lts.
121
, . , .
. 1
,
Ill!.l!
543.<68
37,673
41.034
49,219
52,927
58,343
56,990
00,905
61,826
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100
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~
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o
CITY OF PALO ALTO
GENERAL GOVERNMENTAL EXPENDITURES
BY FUNCTION
(unaudited)
198219831984' 98519861987198819891990 1991
Fi'leal Year Ended June 30
122
III Debt Ser .... ice
(]J 5(ledal ReYef'lue and CIP
0 Social 8: Community
iril PubfIC Sa'ety • Co.'"Tlm Environm
D Pub(~ WorkS • AdmnlStration
J ,
'I
F"oscaJ
, .
Cl1Y OF PALO ALTO
PROPERTY TAX RATES, LEVIES AND COLLECI10NS
lAST TEN flSCAL YEARS
(in thou.<and, of dollars)
(Unaudited)
CUrrent DeIi.cquent
A==<l Total Tar Tax Tax
.
Total
Tax
.i'w. .YolYL ~ill CorJectio[lS Col1ec;:ion s COned i,10;;(2:)
1981-82 $2,763,261 $3,571 $3,428 $425
19S2-l!3 3,166,228 4,141 3,913 143
J98J.84 3,457,2.<;1 4,438 4,265 228
1984-85 3,855,877 4,610 4,47() 173
1985-86 4,515,649 6,094 5.%5 !4U
198(;.87 4,844,145 6,762 6,tSHi 132
1987.&1 S,l62,62S 6,586 ti,437 141
1988-89 5,339,581 6,~ 6,726 161
1989-00 5,864,061 1,5fE 1,356 156
1991).91 fi,SOl,m 1,192 1:no 139
~= (11 Articles XlD·A of the Constitutioo of the State of California .adopted by the electorate b. June
1975 precludes the: CL!:)' from a loc.a:J property tax icry. All general p~ pwperty taxes are
bied by the: COUIlty and aDocated to other gcr."ernmetlral entities OD a predetermined formula.
{7) lnclude.s conec:tion of the curren[ le\-y plus deWH~LJencies and penalties of prior yean..
123
$3,853
4,056
4,493
4,643
6,105
6,748
6,578
6,8..'1
7,5U
8,11l9
'-, __ ot=;
p.
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8000
3000
2000
1000
CITY OF PALO ALTO
ASSESSED VALUES va TAX COLLECTION
(unaudited)
t$Mi!liQMS}
Tax Collections
-+--Assessed Vaue
o~~~~~~~~~~~=1
1910 '911 1992 1S831U.t! 1915 19S612'S7 1985 Hag 1990 1991 19S2
lZ4
•
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.:.~-:.:
CTIY OF PAW ALTO
ASSESSED VALUE OF TAXABLE PROPERTY
lAST TEN FISCAL YEARS
(in thousands of doll",,)
(Unaudited)
s.,cur~d RQl!
Fiscal Person.al
..Y=. liowl !mpmytments PrQperty
1981-82 $ 751,786 $1,404,111 S 73,259
1982-83 870,418 1,595,191
1983-84 965,719 1,742,793
1984-85 1,067,596 1,924,830
1985-86 1,255,547 2,106,016
1986-87 1,377,464 2,348,713
1987-88 1,543,130 2,588,554
1988-89 1,67Q,237 2,809,962
1989-90 1,897,944 3,019,530
~'1 2,168,,56 3,253,018
N!lli:: (1) Beginning in fiscal year 1988-l19, Chapter 921 of the
Star"", of 1987 requires the establishment of a single
oounty.wide tax rate area for the assigr..m.:ent of the
assessed value of certain types of state·assessed utility
property and sets forth formulas for the detenniIll1tioll
of county·wide tax rates for lhis particular type of
property.
Source: C<lunty of Santa Oara Assessor's Office
125
77,667
78,129
68,517
63,990
69,470
120,321
142,484
134,389
107,494
•
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Less
Exemptions ToW
Public Unsecured Net "f A<;.<;essed
"--UtHities(l) ROT! State-Ajd Value
, $ 84,713 S 567,526 5118,134 $2,763,261
99,152 724,902 WI,I02 3,166,2:8
110,582 n5,745 215,717 3,457,251
119,432 9()2,624 227,122 3,855,877
128,316 1,044,827 443,047 4,515,649
130,299 1,198,144 279,945 4,844,145
13lJ,952 1,128,227 348,559 5,162,625
7,295 1,145,899 436,296 5,339581
8,138 1,248,028 443,968 5,864,061
10,139 1,384,622 422,256 ~,so1,973
-WI ~
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CITY OF PALO ALTO
ASSESSED VALUE OF TAXABLE PROPERTY
(unaudited)
6000
5000
4000
3000
2000
1000
• I..tlSEOJH)
• UTILITIES
'981 1982 1983 196~ 1985 1985 1987 1988 1989 1990 19!1 1992
Fiscal Year Ended June 30
127
--_ .. , .......... '''~
;
Cl1Y OF PAW ALTO
PROPERTY TAX RATES -All. OVERlAPPING GOVER."IMENTS
(PER SlOO OF ASSESSED VALUE)
LAST TEN FlSCAL YEARS
(Unaudited)
Ccuotyof
Ft;cl Santa &boo! Special Parking
.Y<llL ~ J:!i>!!kl> ~ :row l2Wli<I
1981-82 $1.01' I,~ 1,005 Sl,O.;S 1.191
1982-83 1.047 ,032 JXl3 1.082-,163
I~ 1.045 1)29 .003 I.an ,l3l
~ 11)44 = J)G3 1.069 .104
I985-S6 1,036 .017 .003 1.056 1142
1966-87 U)24 ll17 ,001 I.D42
1987-&l 1ifl9 1lI6 ill: l.eb7
1968-89 I.038 1111 1XlO 1.049
1989-1>:1 1,038 .oos ,000 I.w.;
199I).9! 1.1139 lXl4 JJOO 1,00
~: Tax rates stateU are tne rates appucabk to t!ioc tax aro--..a, having the ~ ass.es..'>ed
V.aJuatiOIl of aO areas with.i.c the City or PrJo M.a. Rates are based on $100 as.se~
va.lWltion.
Source: County of Santa Clara. Tax Rates and Information
128
...
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j -E'lscaJ ~en!
D"lin~Uent
,
Cilltem
I
I
~ Illem
~t ~d
f
~
~
1981-82
Tota] (I)
$ 419
J e
~
1981-8;J
S 399 443
$1,'
I 412
19~
401 J93
7
1984-.ss
384
40/)
•
343
26
1985-86
323
410
1,112
8
19116.87
1,087
331
1987_88 9/;4
953 20
1./07 30
198s-sr; 1,017
981
983
1,127
35
1989_9()
1,086
1,016
989
31
19S1o.JJ
954 1,Olf
1,117 36
Jl90
~7
23
1,(jZO
~. (1) l11cl
. !~e$ CO/JectiOll.! of tbe
P<:n;i[bes of Prior year. etirrenr Year h,. p
1
ns ct J" .
~
e Joqoetoes and
·,
F=u
.J:DL
1981-82
19!12-83
1983-84
1984-85
1985-86
i986-87
1987-88
1988-89
1989-90
1990-'1
em" DF PAU> ALTO
RATIO OF GENERAL BONDED DEBT TO ASSESSED VALVE
Al'W NET BONDED DEBT PER CAPITA
LAST TEN FlSCAL YEARS
(in thousands of dollan)
(Unaudited)
Percent of
funded Debt
Assessed Bonded to
~ .. !l.!lIli2rr Villu: .ll!iliL (1) ASs.e5S~d Vi!.tu~
55,300 $2,763,261 $14,036 508%
55,900 3,166,228 19,094 .603
56,100 3,457,251 17,160 .496
56,200 3,855,STI 22/;79 573
56,800 4,515,649 21,n) _482
56,600 4,844,145 21,869 .452
56,900 5,162,625 20,671 .400
56,950 5,339,581 19,616 367
57,400 5,864,061 20,334 347
56,000 6,so1,973 19,0% .293
\
Bonded
Debt Per
~-
$.25
..34
31
3~
38
.39
36
..34
35
.34
(1) Bonded Debt includes: General Obligation bonds, Special Assessment Deb~ Certificates
of Participation and Capital Lease Obligations_
130
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--
II
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Cl1Y OF PALO .\l.ro
COMPUTAll0N OF LEDAL DEBT M-"-RGlN
June 30, 1991
(in !bousands of dollars)
(Unaudited)
•
-'":' j -
1990-91 Assesse<l value $6,501 973.
Debt limit -15% of =d value
Amount of debt applicable to debt limit:
<noeral obligation bonds
Cenifieates of panicipation
Capital 1= obligations
Special assessment debt with governmental
COmmitmeDt
Total
Less amount avallable in debt service funds
Total amount of debt applicable to
debt limit
Legal debt margin
$ 1,225
5,125
6,309
~
21,30801
~, m Excludes debt r",",rded in !be Enterprise Funds because it is not su~ject
:0 !be legal debt margin.
131
975,296
9579&2
, I
. j
---"---
CI1Y OF PAW AU'O
SCHEDULE OF DIRECT M'D OVERlAPPING BO:>''DED DEBT
June 3!1, 1991
1990-91 Assessed VatuatiQJl
(in thousands of doUars)
(Unaudited)
$6,501,973
Direct and Oyerlapping Bonded Debt
Santa Clara County Building Authorities
Santa Clara County Fe & WCD, Zone W-I
Footbill-DeAnza Community College District
Palo Alto Unified School IY",trict
OLoer Scbool Districts and School Authorities
City of Palo Alto General Fund Obligations
City of Palo Alto Special Assessment Bonds
Midpeninsula Regional Park District
Santa Clara Valley Water District Certificates
o! Participation
Other Special Distric-.s
Total Gross Direct and Overiopping
Bonded Debt
Less: EI Camino Hospital Authority
(100% Sclf-Suppocting)
Total Net Direct and Overlapping Bonded Debt
Ratios to Assessed VahHl.tion:
Gross Direct Debt ($10,397)
Total Gross Debt
Total Net Debt
June 30, 1991
% AwlkabJc Bonded Debt
7385
0.468
21037
89.762
Various
100.000
100.000
13.040
7385
Various
0.16%
0.80%
0.80%
SI8,417
113
4,%8
448
242
10,3970)
8,649
6,217
2,845
--.-lQ
~: (llJ:ncludes $3,951 Terman School Capi(a! [ease Obligation.
Source: California Municipal Statistics, Inc.
132
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Fiscal
..Yw..
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91
CITY OF PALO ALTO
RATIO OF ANWAL DEBT SERVlCE EXPENDITURES FOR
GENERAL BONDED DEBT TO TOTAL GENERAL EXPEl\'OITURES
LAST TEN FISCAL YEARS
(in thousand; of dcllars)
(Unaudited)
Interest Ratio of Debt
and Total Total Service to
Other Debt General Total General
Principal O!ar~ ~ Expenditures(1) E~ndiwres
S1.215 $ 154 $1,369 530,565 54.48
586 1,296 1,882 32,913 5.72
1,073 1,243 2,316 37,844 6.12
645 1,325 1,970 40,049 4.92
565 1,280 1,845 46,564 3.97
940 1,147 2,0&7 55,411 3.77
1,198 1,718 2,916 53,575 5.44
1,113 1,676 2,789 55,566 5.02
1,112 1,435 2,547 57,433 4.43
1,239 1,850 3,139 59,408 5.28
.. ~: (I) Includes general, special revenue and debt service fund; but excludes capital
-'
projects.
(2) Data presented for fiscal yea."'S 1981 to 1986 was not re~tated to include
special assessments as a result of the adoption of GASB Statement No.6.
133
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CfIY OF PAW ALTO
REVENUE BOND COVERAGE
WATER, ELECfRIC, GAS AND WASTEWATER FUNDS
LAST TEN FlSCAL YEARS
(in LiO'.lSands of dollars)
(Unaudited}
Na Revenue
DUoa Available
FIS<8! On,.. Operating for Deb( ~ S"rvl,,,----.J;_gmms:;gl~
.:t<at. B=II< Exneogs(l) $eryjG f!iWaI lDill<lI I2Iil ~
1981-82 $ 49,913 $35,623 S14,2S(l $420 S 94 S 51' $27.82
1982-83 56,657 40,297 16,360 370 11 1.~1 .2.96
19S3-&i 69,660 SO_i83 19,on 0'" 208 208 91.71
1984-85 82,6iJ7 58,1190 23,917 170 351 521 45.90
19I!S-86 89,996 66,920 n,076 210 657 867 26.62
1986-87 96,803 68,919 27,884 220 856 1.076 25.91
1967-88 97,D84 63,.182 33,702 334 1,044 l,378 2 .... 6
1988-89 97,790 60,344 37,446 534 1,011 1,545 24201
1989-90 104,948 70,090 34,858 56S 935 I,SOO 23.2.
1_91 109,115 711,362 38,113 95l) 92l 1,872 2(1.74
~: (t~udcs deprcciaLiol] and amort.izatloD expen.o;e.;..
OON"o bond prin<:ipal was paid in fu.caJ 198J-.84. due to defe.asa.ac:e ollm &nds ";:1 b 1.983 Refunding
BODd rssu.,
134
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Fiscal
Y=
1981-82
1982-83
1983-84
1984·85
1985·86
1986-87
1987-88
1988-89
1989·90
1990-91
Smu:=:
CITY OF PALO ALTO
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(Unaudited)
City Size
Squar. Street
Miles Mill:.>
25,98 189,80
25.~d 189.80
25.98 190.10
25.98 190.10
25,98 190.10
25,98 190.10
25,98 193.12
25.98 193.12
25.98 193.12
2538 193,12
(l)State Department of Finance
CZiPalo Alto Unified School District
(3)State Employment Development Office
135
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City
PopulatjQn(l)
55,300
55,QOO
56,100
56,200
56,ROO
56,600
56,900
56,950
57,400
56,000
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I Population i
'j, County as a % of Scboo! Unemployment
PRPulati;:m(!) CwP£, ~Ali2n(l) Rate (3)
Not
i 1,325,200 "
4.17 9,118 Available
1.344,700 4.16 8,583
1,363,300 4.12 8,290
1,376,900 4.08 8,145 3.6%
1,403,100 4.05 7,914 3.4%
1,407,900 4.02 7,835 28%
1,431,600 3.97 7,683 26%
1,440,900 3.95 7.4n 2.6%
1,463,500 3.92 7,443 23%
1,513.100 3.70 7.4~ ~
•
136
lilgumill
Number
F""'] of
.Xw.. lmIliLI ~
1961-82' 137 S30,526
1982-83' 123 36,899
198J.,<I4' 113 79,906
1984-8S 15 S~7
1985-86 3: S,145
1Ilf6.87 16 2,229
1987-88 10 1,125
~ 3 1&2
1989-90 7 249
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CI1Y OF PALO ALTO
CONSTRUCllON ACllYJTY
LAST TEN FISCAL YEARS
(in thousands of doll.,.,.)
(Unaudited)
{:mm.1Jl,rmJ &. ~ Baid~tiiIJ
Numba N1.Ill:Iber
of of
fmIIiIo Y.a!Jaliog ~ Valvation
244 $32,133 627 $21,283
296 58,908 624 Z2,957
26S 53,600 747 18,922
255 54,558 m 31.461
280 30,576 9W 29,560
330 61,099 1,108 39,205
311 42,062 1,100 40,870
316 59,835 1,130 <7,334
331 66,373 1,195 43,318
342 79,901 I .... 41,16:
137
AD Qlht~
Number
of
foImi!.i
161 $23,183
I3l 8,866
82 8,961
197 15,547
135 8,509
83 lllHl
81 11,on
65 5.192
53 ",47'
70 9.935
PropertY I P5S
Blanket
Boiler & Machinery
Data Proussing
f1mmdaZ T 955
Employee Blanket
Comprehensive Public
liahility
Um"reJla~
Special Uability
Volunteers Accident
Special Events
Employee Benefi!
Travel Accident
Employee Health Plan
Workers· Compensation
Eu;ess WQrkers'
CmnpensatiQn
•
CITY OF PALO ALTO
rnSURANCEOOVERAGE
June 30, 1991
(Unaudited)
Cove rage (or cornme nt)
All real '" personal property -($10,000 deductib!e)
In excess of 55,000,000
All rea! & peMna! property:
(525,000 deduCllble -each transformer)
($10,000 deductible -all other objects)
All risk -(51,000 deducnble)
Position bond -faithful performance per loss -(~5,OOO deduClllJle)
City is self-insured for first $1,000,000 of liability
City is a member of an insurance pool participating with
a Dumber of Qther Californla ci ties.
Each Occurrence
Medical -Eaeh Person
Bodily Injury ($250 deductible)
Indemnity, based on salary
Each person 100% in .xcess of $J25 ,000 each
disability period up to a lifetime limit of $450,000
per persoIL City is self-insured for first $125,000
of lia biIlty
Cit)' is self-insured for first $1,000,000 of liability
Excess Workers' Compensation
Employers Uability
138
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$5,000,000 per oxurrence
S2!J,OOO,OOO per OOOlITeDce
55,000,000 per accideDt
$3,150,000
$1,000.000
59,000,000
$5,000
$5,000
$1,000,000 per occurrence
$1.soo.ooo per accident
5450,000 (IiMime limit
each perliOn)
$10,000,000
52,000.000
· ... ,
Expiration
Company ~tL-
CommonweaJdl 07/01/91
Fireman's Fund 07/01/91
Pacific lndcmnily (CHUBB) 07/01/91
Sun Insurance Co. 07/01/91
Hartford 07/01/92
Accel Group 06/30/91
National American Insurance Co. 01/01/92
Scottsdale Insurance 03/24/92
Ufe Insurance Co. of No. America 07/01/91
Employe" Reinsurance 12/31/91
National Union 07/01/91
139
Leland Stanford Jr. University
Spa<e SysIcms/Lo"1
S f Palo Aha, ]ftC.
Cawper-Hamilt01J Associates
Cowper Sotaar=s Partnen.
MSD Acquisruons I=
ToWs
CITY OF PAW ALTO
PRIc,{C[PAL TA.XPAYERS
June 3D, 1991
(in iliousand, 0( dollars)
(Unaudited)
Type pf BuNne;5S
Uwvcn.il:y and ancillary
R eseard and Developmeol
Gen~ral Industria!
Office, Banks a.cd Clinks
Computers and Elc:ctroma
Comput~r & Elect:rcnics
Other Shopping Centers
Offices, Banks and Clinics
~: Center ror Urban klaly.ill; County of Sant. Clara
140
% ofTOIal
Ass=ed A==d
~ Yi!IWi<>II
S 984,516 15.14 C
95,246 L46 C
46,610 0.72
42,555 0.65 C
29,691 0.46
26,0<;"<) 0.41 a
19,267 0.30 ~ 18,316 0.28
13,515 0.21 a
~ .J1..lI)
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CITY OF PALO ALTO
MISCEllANEOUS STA nSnCAL rNFORMA nON
June 3D, 1991
Disco\o'ered
Incorporated
!nco!"pOrated as charter city
Goyernment
Population
Land Area
Oly Maintained Trees
Police Protection
Fire Protection
Parks and Recreation
Number of Housing Units
Olmmercial and IlIdustrial Spare
Municip:il Utmly Plans:
Water
Wastewater
Electric
Gas
(Unaudited)
1769
Apr] 16, 1894
July 1, 1909
Oluncil -Cily Manager Form
56,000
25,98 Square Miles
41,000
I Station
165 Regular Employees
27 Police Patrol Vehicles
7 Stations
118 Regular Employees
24 Fire Apparatus
1,500 Fire Hydrants
150 Acres -Downtown Area
3,920 Acres -Open Space
34 Parks
1 Golf Course
45 Tennis Olurts
I Athletic Center
3 Community Centers
2 Theatres
3 Oubhouses
4 Arts and Craft Centers
25,188 Units
24.9 Million Square Feet
5 Million CCF Sold, 18,990 Accounts,
221 Miles of Mains
7,676 Million Gallons Processed,
21,608 Accounts
205 Miles of Sanitary Sewer Unes
1,085 Million KWH Sold, 27,126 Accounts
131 Pole Miles, 137 Trench Miles
38 Million Therms Sold, 23,066 Ac<:ounts,
181 Miles of Gas Mains
141
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CIIT OF PAW ALTO
SINGLE AUDIT REPORTS
for the year ended June 30, 1991
142
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REPORT 0'-INDEPENDENT ACCOUNTANTS
'The Honorable Mayor and City Council
City of Palo Alto
Palo Alto, California
---------
We have audited the general porpose financial statements of the City of Palo Alto, California
(the City) as of and for the year ended June 30, 1991, and bave issued cur report thereon dated
November 8, 1991.
We conducted our audit in accordance "ith generally accepled auditing standards, except as
explained in the third paragraph of our report, and Governmen! Auditing Standards, issued bY
the ComptroUer General of the United States. Those standards require that we plan and
perform the .',rut 10 obtain reasonable ""uranee abou I whether the general purpose financial
statements are free of material misstatement
In planning and performing our audit of the general purpose financW statements of the City
for the year ended June 30, 1991. we ronsidered its internal control structure in order to
determine our auditing procedures for the purpose of expressing our opinion on the general
purpose financial statements and not to provide assura.nce on the internal control structure.
The lllJ!llagemenl of the City is responsible for establishing and mainWning an inte mal control
Structure. In iuIfilling this responsibility, estimate, andjudgrucnts bY management are required
to assess the expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide management with
reasonable, but no! absolute, assurance that assets are safeguarded against loss from
unauthorized use or disposition, and that transactions arc executed in accordance with
management'S authorization and re<orded properly to permit the preparation of general
purpose financial statements in accordance with generally accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or irregularities may
nevertheless occur and not be detected. Also, projection of any evaluation of the structure. to
future periods is subject to the risk that procedure. may become inadequale because of changes
in conditions or thal the effectiveness of the design and operation of policies and procedures
may deteriorale.
143
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For the purpose of this «pori, we ha','e cl"-lSified the significant internal control structure
policies and procedures in the following categories: ueasury, revenue, purchaOies and external
financial reporting.
for all of the internal eontrol structure categories listed above, we obtainp.d an understanding
of the design of relevant policies and procedures and whether they have been placed in
operation, and we assessed contrc! ru.k.
Our consideration of the interna1 control stru:mre would not necessarily disclose all matters in
the internal control structure=: that mjgh[ be ma.~erlal weamesses under standard .. established
by the ... merican Institute of ee,..j!ied Public Accountants. A material weakness is a reportable
condition in which the design or operation of one or more of the specific internal control
Structure elements does Dot reduce to a relatively low leve~ the risk that errors or irregularities
in amounts that would be material in relation to the general purpose financial statements being
audited may occur and Dot be detected within a timely period by employees in the normal
o;:ourse of perfonning their as.signed functioDS. We noted no matters involving the internal
contrcl structure and it5 operation that we consider to be material weaknesses as defined above.
However. we noted other matters involving the internal conttol structure and its operation that
we have reported to management of the City in a separate letter dated November 8, 1991.
This report is intended for the information of the City CouncJ, management, its cognizant
agency, and other federal agencies granting funds to the Ot)'. This restriction is not intended
to limit the distnbution of this report, which is a matter of pub~c record.
Menlo Park, California
November 8, 1991
144
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&Lybrand
""' -"
REPORT OF INDEPENDENT ACCOUNTANTS
The Honorable Mayor and City Council
City of Palo ,<Jto
Palo Al to, California
We have audited the general pUIpOSe 6nancial statements of the City of Palo AltO, California
(the City) as of and for the year ended June 30, 1991, and have issued our report thereon dated
Novemher 8, 1991.
We couducted our audit in accordance with generally accepted auditing standards, except as
explained in the third paragraph of OUI report, and Government Auditing Standards, issued by
the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the general purpose financial
statements .ue fr"!-e of material L'lisstatemect
Compliance with laws, regulations, contracts .."d grants applicable to the City is th.
respoDSlbility of the City's managemenL .... part of obtaining reasonable assurance about
wbether the ge neral purpose financial statements 2fe free of material misstatement, we
performed tests of the City's compliance with certain provisions of laws, regulations, contracts
and grants. However, our clJjective was Dol to provide an opinion on overall compliance with
such provis.i.oru;.
The results of our tests indicate that, with respect to the items tested, the City complied, in all
material respects, with the provisions referr-=d to in the preceding paragraph. With respect to
items not tested, nothing came to our attention th<i.' caused us to believe that the City bad not
complied, in all material respects, with those prov'.sio!l5.
This report is intended for the ir.form2tion of the City Council. manag.,nent, its cognizant
agency, and other federal agencies granting funds to the City. This restriction is cot intended
to limit the distnbution of this report, which is a matter of public record.
Menlo Park, California
November 8, 1991
145
"
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REPORT OF INDEPENDEJ'IoT ACCOUNTANTS
The HODOrable Mayor aJ:d City Council
City of Palo Alto
Palo Alto. California
We have audited the general purpose ti!lancial statements of the Ci ty of Palo Alto. California
(the City). as of and for the year ended June 30. 1991, and bave issued our ,"pon thereon dated
November 8, 1991. These general purpose ti!landai statements &1'0 the re,poDSlbility o( the
City's management. Our responsibility is to express an opinion on these general PllIJl<l<e
tma.z,cial statements based on our audit.
We conducted our audit in accordance .. ith generally .=pled auditiJig standards, except as
aplained in the third paragraph of our report, and Government Auditing Standards, issued by
the Comptroner General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the general purpose ti!lancial
statements are free of material misstatement. An audit includes exam;njng, on a test basis,
evidence supporting the amounts and disclosures in the general purpose financial statements.
An audit also includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall general purpose financial statements
presentation. We believe that our audit provides a reasonable basis (or Our opinion.
Our audit .... as made for tile purpose of forming an opinion on the general purpose financial
statements, of the City. taken as a whole. The aCC<lmpanying scbeduJ e of fe deral financial
assistance for the year ended June 30, 1991 is presented for purposes of additional analysis and
is !lOt a required pan of the general purpose financial statements. The information in that
schedule bas been subjected to the auditing procedures applied in the audit of the general
purpose financial .tatements and, in our opinion, is falr~i preseCled in all material respects in
relation to the general purpose financial statements taken as a wbole.
Menlo Park, California
November 8, 1991
146
/'
CITY OF PALO ALTO
SCHEDUlE OF FEDERAL FINANCIAL ASSISTANCE
for the )'ear ended 1Ulle 30, 1991
Federal Grantor'
Promm Title
U.S. Department of R1JD Community
Development Blocl: Grant
Other Federal Financial Assistance
Programs
Tara! Federal Assistance
Catalog of
Federal
Domestic
Assistance
Number
14.218
147
Total
Program
Assistance
Received
S 766,446
251695
il.Ql§.14 1
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Expendjtun~s
5453,252
251695
$704.947
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REPORT OF INDEPENDENT ACCOUNTANTS
The Hono~4ble Mayor and City Council
City of Palo Alto
P'lIo Alto, Califomia
-------..--_._.-
We have audited the general purpose financial statements of the City of PaIo Alto, CaEfornia
(the City), as of and for the year ended June 30.1991, and have issued our report thereon dated
November 8, 1991_ As part of our aumt, we made a study and evaluation of the internal control
systems, including applicable internal administrative controls, used in administering federal
financial assistance programs to the exlent we considered necessary to evaluate the systems as
requiTed by generally .coopted auditing standards, Government Auditing Standards, issued by
the Comptroller General of the United States, the Single Audit Act of 1984. and the prO\isions
of Office of Management and Budget Circular A-128, • Audits of State and Lo<:aI Governments."
For the purpose of this report, we have classified the significant internal accounting controls
used in administering federal financial assist:mce programs in the following categories:
Aconunting amtrols: operating revenues and cash receipts, purch.... and cash
disbursements and external financial reportiI:g.
Administrative controls:
General requirements: political actlVlty, Davis-Baron Act, civil rights, cash
management, rea! property management and federal financial reports.
Specific requirements; types of SClVices, reporting. special tests and provisions, and
monitoriDg subrecipie!lts.
Tne management of the City is responsible for estabJisllin6 and maintaining internal control
systems used in admini.steriDg federal financial assistance programs. In fulfilling thaI
responsibility. estimates and judgments by management are required to ass= the expected
benefits and related costs of control procedure.. The objectives of internal control systems used
in administering federal financial assistance programs are to provide management with
reasonable, but not absolute, assurance that, with respect to federal financial assistance
programs, resource use is consistent with laws, regulations and policies; resources are
safeguarded against waste, loss and nUsuse; and reliable data are obtained, maintained and
fairly disclosed in reports.
148
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Because of inherent limitations in any ~"5.tem of internal accoWlting and administrative controls
used in administering federal financial assistance programs, en or> or irregularities may
nevertheless occur and not be detected. Also, prlJj~ction Gf any evaluation of the systems to
future periods is subject to the risk that plocedures may become inadequate because of changes
in conditions or that the degree of complian~ "Nith the procedures may deteriorate.
Our study incl"ded aU of the applicable control categories listed in the first paragraph. During
the year ended June 30, 1991, the City expended 64% of its total federal financial assistance
under one major federal fin'Ulcial assistanre program. With respect to internal control systems
used in administering the City's major federal financial assistance program. our study and
evaluation included ronsidering the types of error> and irregularities that could ocrur,
dete=ining the internal control procedures lila! should prevent or detect such errors and
irregularities, oelermining whether the necessary proredures are prescnbed and are being
fallowed satisfactorily, and evaluating any weaknesse..
With re~ to the internal control systems used iOlely in administering the nonmajor federal
finar.cial assistance programs of the Cily, our .tudy and evaluation was limited to a preliminary
revit:w of the systems to obtain an understanding of the control environment and the flow of
transactions througb the acrounting system. Our study and evaluation of the internal control
sys teIDS used solely in administering the nonmajor federal financial assistance prograrr.5 of the
City did nol extend beyond the prellmlnary review phase.
Our srudy and evaluation was more limited lIlan would be necessary to ..... -press an opinion on
the internal control systcIDS used in adrninisterirg the federa; financial assistance programs of
the City. Accordingly, we do not express an opinion on the internal control systems uoed in
administering the federal financial assistance programs of the City. Further, we do nol e""ress
an opinion on the internal control systems used in administering the major federal financial
assistance FOgrams of the City.
Also, our audit made in accordance with the standards mentioned m the first paragraph, would
not nece~arny disclose material weaknesses in the internal control systems used solely in
administering nonmajor federal financial assistance programs.
However, our study and evaluation and our audil disda.ed no condition that we believe 10 be
• malerial weakness in relation to • federal financial assistance program of the City.
This repon is intended solely (or the use of the City Council, managemont, its cognizant agency.
and other federal agencies granting funds to the City, and should no! be used for any other
purpose. This restriction is not intended to limit the distn"bution of this report, which, upon
acceptance by the City, is a matter of public record.
Meulo Park, California
November 8, 1991
149
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ICQopers
I &Lybrand
REPORT OF INDEPENDENT ACCOUNTAlljTS
The Honorable Mayor and City Couacil
City of Palo Alto
Palo Alto, California
We have audited the City of Palo Alto, California', (the City) compliance with the requirements
governing types of services allowed or unallowed; eligibility; matching. level of effort or
earmarldng; reponing; and special tests and provisions that are applicable ofits major federal
fimmdal assistance program, which is identified in the scbedule <lI' federal fimmcial assistance
for the year ended June 30, 1991. The management of the City is respotl5lble for the City's
cocplianee with those requirements, Our responsibility is to express an opinion on compliance
with those requirements based an our audit
We oaruIucted our audit in accordance with g.nerally accepted auditing standards, Government
Auditing Standards, issued by the Comptroller General of the United States, and OMB Circular
A-128, 'Audits of State and Local Governments.' Those standards and OMB Circular A-128
require that we plan and perform the audit to ob!aln reasonable assurance about whether
material noncompliance with the requirements referred to above ocrurred An audit includes
examining. on a test basis. evidence about the Citis compliana: with those requi!"ements. We
believe that our audit provides a reasonable basis for our opinion.
The results of our audit procedu.res disclosed no inst"'= of immaterial non<:ompliance with
the requirements referred to above.
In our opinion, the City complied. in ali material respects, with the requirements governing
types of services aliowed or unallowed; eligibility; matching, level of effort or earmarking;
reporting; and special tests and pr"".sions that are applicable 10 each of its major federal
fimmcial assistance programs for the year ended June 30, 1991.
~(~
Menlo Park, California
November 8, 1991
150
•
REPORT OF INDEPENDENT ACCOUNTANTS
The Hooorable Mayor and City Council
City of Palo Alto
Palo Alto, California
\
We ba.e applied procedures to test the City of Palo Alto, California's (the City) compliance
with the follgw;.ng requiremen .. applicable to its major federal financial assistance program,
which is identified in the schell-.lle of federal financial assistance, for the year ended June 30,
1991: political activity, Davis-Bacon Act, c:iviI rightS, casb management, real property
management 3lId federal financial reports.
Our procedures were limited to the applicable procedures <lescnbed in the Office of
Management 3lId Budget's Compliance Supplement for Single Audits of Slate and Local
Governments. Our procedures ,,;ere substantiaJly less in scope than an audit, the objective of
which is the expression of an opinion on the City'$ oompliaooe with the requirements listed in
the preceding paragraph. Accordingly, we do DOt express such an opinion.
With respect to the items tested, the results of those procedures disclosed no material iostan=
of nonoompliaooe with the requirements listed in the first puagraph of this report. With
respect to items not tested, nothing came to our anention thai caused us to heli .. e thai the City
bad not complied, in all material respects, with those requirements.
This report is intended for the information of the City Council, maoagement, its cognizant
agency, 3lId other f.de."al agencies granting funds to the City. This restriction is not intended
Ii to limit the distribution of this report, which is a maner of public reoord.
Menlo Park, California
November 8, 1991
151
CITY OF PAW ALTO
SCHEDUlE OF FINDINGS
for lb. ye:!! ended June 30, 1991
AD findings from prior yean bave been addressed and cleared by the City_
152
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