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HomeMy WebLinkAbout0520.091~ , j 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~ CMR: 520; 91 iv i I I I ---- · J .... ,;...;;,;.,..'-"-...:.--_._.-'-.. 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. CMR:520:91 v - c c c 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 CMR:520:91 vi Alta Unified School District which win have Significant \y. In 1987, Pa10 A1to 'oters • ·~" ""'-'-'---.'-'~".--"''''''''-' 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 CMR:SlO:9! II i i .. .. • , . ill c a , . ·1 -. j J 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. CMR:520:91 \' 1 i i '. 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 CMR:510:91 i x .--~""' ..... --,-~----,,'---' • 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 (~) .. ~ (1,851) r .. i .. I L; , I C I '---,_ . ......-......... -." , ... --. ...... r ... • " ) " ~, , ~ :;, " -, , ~ 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 •. CMR:510:9! • • ------------------.-.-.-~---.-. 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 CKR:5l0:91 xi --;--.-----'-'-.-~--.-.. • 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 ~ .JlM) B9.28 I. 651 J.O_JI L.lli llQ..£Q 3.071 ~ , -- ..: r L , .. -.. ) ~ .. .'-;-, J I - 1 J , I -, , ----,---~ ' .. ---"-----" 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 CMR:520:91 72.59% 1991 Ac.tual 540,128 5,053 2,002 2,623 560 828 .-!i-Q.9,j 55,289 xi! 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 $'2 minion per year. A power pooling operation wltn the ten interconnecte<j cities of the Northern Ca1ifornia Power Association ~'as initiated, IoIHh an anticipated sailings of 51.S mi11ion annually. Palo Alto negotiated favorabie changes to prellicus t~lifDrnia Public Utilities Commls~ion rulings, which ailow tt'Je Cit:; to I'l~gotia:te a one~year corrtract wi th Snel1 Canada for purc~.ase and del ivery of natural gas. This contract provides such a favorable price that the City wa~ able to secure Sl.7 million in annual savings and avoid a previcusly a~nounced IS percent gas rate increase. Redes191'1 of me-ter reading routes 'Has c~m?leted~ resulting in more current accounts recei\lable. Staff also developed conservation prognms designed to meet two levels of ~alter comer-vat ian requirements, and executed the final program so as to avoid some S340,OaO in potential fines from the San FranCisco Water District. Enterprise f:Jl'1d revenues were S3.2. million short of budget CMR: 520: 91 x j i ; - ,.. - p , l. r- I.. i ,., I ~ , f· I I.; c I .---..,..-:::-:~,....--.---.---."-~-. ,--~."' .. "". -_$_" •• I'll - > .- i .. ___ ----l--.-__ _ 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 CMR:520:91 ta __ '" •... , ... Ii __ D_ . -.....,. xi .. 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 ... a __ C3 -.. g';' lil_ a -.. .-- Increase (Decrease, from 1990 5,435 (8l8) ~ 4,775 I, 119 405 _649 S.l..1.§.l. , , I , , ' 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 • \ - - -.. W - , .... -,,I.~" ~,~=-"-~'-'-"~.~~,-----,-..... 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 • I I i .. I I I I I I I I I I I I I I , ... -. ..., , j 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. • ./ • • . ---------~--~--- 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 -r . -r I -t· ! .... ~ ~ C I I , , , , , , , , , , I , , I , I , I · " i ~ ~ , '1 '" o:-~ -:.." : -, 1 ] .... J .., J J 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.. 2 ,--"' ~-----""'-,"---"'y, , ~ I I -~' • - ~ .. - -... ·i, !oo ,.. , .. C D C '" ill C C iii I.i C C Q 1'l1li ::r,,; . ~-::z .. - -.t. ~-c ~ fjd~ ~I!l~r TOI.a~ 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 ~ .J ~ ~ ~ l.!.!!!..:Ul ~ ~ ~ '.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 --.-IDID ---DOOJ ~ .ll.M?il ~ ~ .1Q1.lli ~ -'.5Q.ill ~ ~ ~ 1!2l..m I.!2&:lli ~ ~ 3 • • ._,----------" , -, 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. 4 '---"-'~--., ---~ J' ; . -,-----", ,-._'"--... -"-~-. .,-., " 0 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 5 I ---~'--.--. Fr.., • • , " : . ,-. . , / --'---- ." ., .:: I .. .., J ~ tI.iliS§l fIQj~ii flms1 12lW M;I:IUllil,;!J!.im QgM ~ 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 .J .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) .., ..l.W --l.l2l , 1...m ~ ~ ~ ~ ~ ~ , -' ~ 6 "'<" -_.---. -~ . , -I ~ -I -: 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.. 7 • ;,' --.------- -\ .., , ... -. ...ThiJ.li..!}J.,mQ[IDIlI,I!D O:Dl;l 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 -1l al.Q&J ~ ~ ;,414 ~ lWlZ The 30c0tn~ying notCli au: a.D mtc::gral part of these combined fu1a.ocial stal~m~Dts. 9 -,1- lnt.rnaI &,,;,. -fIIIlL $(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 "f~t,~ I· c,~-" - ". ____ .~".f __ .., .... "' ... __ 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~ ---1l 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) ~ , : I 1 .. ,. :.. ,. , .. r ... '" I. r- III C = I I l I t . i I" I -b. t-+-<' . t I , I I I I , f :.' ':"'r~, .,"oC: : l ·."'AJj""}~"ry' •. 0' ;;i 1 i ~ °1 1 ::"j ... ! ., ~ 1 - 1 oJ ., ..J J ~ - "' ~ -' ., • ...i -; 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 .l22Q $ 1 ..1l .:n ---1 J .1l ~ 1M CITY OF PALO ALTO " NOTES TO CO:'illINED Fll'1A."ClAL STATEMENTS ; J ..., j 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 iI • .. t ~i ~I • I ;-1 , I I I I I 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 • b I . j ... -.--.' r, ill .. I' .. . -1",-:.. I' ... I~~·· -; -I , I , I :'" I -I .. ... r ... r'" I - ~ ..; I" , .. '" iooi C C .- II = I I , fj b 'I ~ ., t1 j I ., , ~ .., . ~ P1 , I - ~ t ; ., , -' -, , -' ... ., ... ~ ~ ., .., 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 • " i ~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 I'" , .. "" , '" '" '- -- ~ , .. '"' , .. c c a I i - I , t I , , ! J -, -..J ., .J j j 1 ..1 ""1 , -, , ..1 ,., J 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 . ----~--- " . .-~~---," ___ -• .............. " • ...,i ..... llr-· 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 I"' .- '- ~ .; ,- I.. C ., I.. I'" .. "" ~ C C C C I I -.~"" rrnflIitI : I I I r I t, I I I I [ fJ ~ .;; ~ -l ~ : J J :~ ... ..l ., j -J ., ..l ., 1 ... ... ; ., .J J -' -. ..; 21 i -' -. j 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 • \ - '/ 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 J8 ~ , ~ ~ ..., , ~ ;~ ., 'I J 1. -J J .:. -, -, .. 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 r; :.. ,... f ... -, . ... L. ,.. '" c c I I .J J. , ...i , : , \ - --. 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 • > I I' I I I I - : / 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 " . c ~ , ' .. . - ,.;.;. - -.. ,- /" • .. c c ] ., -. -. 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 - i· i ! -, ~ I :1 .: I ... 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 [ - - ,.. , ... " i.I C I JliruJ. ~~ I .c l -J .. ~\ -., ~ .., ..; ..., i ~ ~ -' -; j -, -' -; , ------........:-----"------~------------- 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 ... -, l.. C I I --.. ~." -~ j - '"'1 j ... 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 """'1 , -' 5 . ., ; ] ] ... , ... ..., ...J .., .. t ., , J . - ~ ..., -' .., ..., . -/ ,-----.--..:.---.----~.--. --:.....~----- 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 ., , ~ -J .., ...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 \ ,.. L .--,.. '" .­ " - .. I .. a » I I i :: ..., ..., I -., .J .., • ... .., .., , ...! .., II , ~ 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 $152,824 at Iune 30, 1990) Unfunded pension benefit obligation 32,863 45,732 --L1l2 143,840 During fiscaJ 1991, the Board of Administration ofPERS approved system-wide changes to the mortality. retiremeilt, withdrawal, and disability rates used ir. ca1eulating the pension benefit obligation to better estimate the future experience of the plan. For the City. these changes in actuarial assumptions increased the pension benefit obligation by 53,469 during fiscal 1991. Continued 39 \ ,.-----------::~k--. ~ -;$~--:- ,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 $2,933 (7.45 percent of current ,overed payroll). Trend Information: Trend information gives an indication of the progress made in accumulating sufficient assets to pay benefits when due. SYSitem-v-ride ten-year trend information to be supplied by PERS is not yet avaOable. Continued 40 !'" i.. r .. :..: ~ , ... r - ... - ~ -... !'" .. - .-... c I I ! I , , I i 't"i:: 7,·:0' ..., • ..: ... .J ..., • ...I 6. CITY OF PALO ALTO NOTES TO COMBll'iED F1NANCL.&.L STATEMENTS, Continued June 30, 1991 (in thousands of dollors) Pension Plan. continued: TrEnd Information, continued: Fiscal 1987-1988 is the first year that thi5 actu<uial information has been made available by PERS. The trend information for fiscal yean 19&8-1%9 through 199().1991 is summar'.zed as follows: 199Q.1921 ~ 198I}1982 Net as:;.c.U available (or benefit! cxp=sed as • _ 0( lhc pcmiOD benefit oIXigatiOll !Il.7% !Il.6% 90.0% TJDfImded ~ bellefit obIigatio~ expressed .as I percentage of annual covered pa)ToIl 219% 22.8% 33.9% Emr'oycr rontr'ibullom cxpt~ .... !>C'_ O( ... U.aI """,<0<1 paY>"On. made in Iccordan<::e with actua..~ determiacd requircmena 9$% 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 AT c ,.. ' .. r .. ,... ~ I"" ;.. ,.. ~ ... , . - I"" • ... r .. 1"\ .. I"'! I.i ~ ... '" , ' ... C C C C ~ U • "' ~ " " , ;. ..: , "1 c .J -; '7 ~ .. ...J -, 1 ~ .J .., ...J .., .~ ~ -0 .J -.., ..:. 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 .. t J , ., t -.., .J i J .. ...; .., --' ~ -i ., ...! -' • ..l... __ _ 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 "- '- ,.. , '-' r. '- :-... ~ . ... -\.. ,. I. I" I. C C -. . - i ... ..., J -..., Storm • WNt.ewater ~ Drainau Il!lAl 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 ,-,<, t-, ! ! , , "':.' 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 • r .. -, , -- c .. j" c c ------------... -_. ---------.. ,III!;!IIlIIIlI •• ~ ... 1 -.. 1 -Storm -~ &l'l.lR Draina~c I.2Iil 1 $ 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 -WoW. ~ l.l..m ~~~Q~Q -.. ,., j , ....; ..., ,; .J ....; Continued ~ 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 • .. ', .;: - W -f~ .. I'! !oj l"'! W M .. C .. , .' C ·~;:f~t· /t C a I I ~ .~ ,. t-: ~ J l , ~ -, , .... ~ J ..J ~ , • i J ~ · ., ~ • --' .., -, 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 .. ----.-~ ~'-'"----'--.,.-.,""'"~ --; , i ,j I • . . "_.,_." _,. __ . __ ," ___ ,~ __ ..... It 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 .. , .. . ... ,- :.. r , ... , - i - r .. c c c 11. -; ..., J 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 • \ fJ ~l j I i I I i • 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 r .. '::::- ,.. - - C I / .; 'I 1 .., j -, -, 1 • .-< I!l -. 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 $5,040 for services rendered by PASCO. Continued 55 r ... ,- -, ~ r .. .. 1 i ~ ~ l.. C .. W c o . , [ . -. r CITY OF PAW ALTO NOTES TO COMBL"lED FL'IANOAL STATEMENTS, Continued June 3D, 1991 (in thousands of dol: ... ,,) 12. Bl1d~tatY. GeneraDy Accepted Ar,cOJIDting Principles (GMP) Rel"'rting The following recoociliationpresents comparisons afthe legally adopted budget (more folly described in Note I) o~ a budgetary base" with the budget as adjusted to reprosent a GAbJ' basis: :E~ 0( teYCl1UC:$ 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 . - . ,-,:".-", .. -;'" "~. . .;, -'" , . .. I I I I I I I I I I I I I I ..~ .. t :. ~ '" '.j , t! :,;j ~i . '> . . , , /. 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 " ..•. r -.. r - c c I'" .. -, ~ ,.. c flY .. • ~.-,.<~.---"-~--.'--' ~ '" 'i l ~" 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' ~ ~ ~ ~ . __ ._--- .:r- 0 ~ C 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) .. . -------._---.----.~----'--'-'"-- I .. • , ~ 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 ] -- -' =--,"'-'---'-----------------_____ ., ___________________ ---'-__ ...... .-..i;,,';, 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 ~--:-:--;------.-~---------------- - -, ' , - r'" ; - '"" 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 • ... \-,. -.-" ... - 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 I i - !" I ;.. C C .. .-.,--, 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 ~: . . "; 's"" .. '<, 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 • , '. ,I .. W c r ... c c I'" I. ,. > ... .. ~ • 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. - ..J • 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 • -f-· ~ -, ~ -c a I . J -' -, -, ~ ~ '> , ,~ -• • -' " ; -' ~ 11 ~' , , , "-" :)'~--'. 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 C 97 I - ,,,*"-- .. ,.;,.'. t~~ • ~. r -. ~.,.-< "-<:: " , .. ' . --; ., '. I ~ ': ~ I 1 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 _-"n"~_", .r. ___ ,. ·C--___ • __ ,_"'.~., __ -..,.--_~,_ .... " c r 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 ~ iOO ~,-,._--_ ..... -.....-..... '. ''7 .. .::. ~ ~ ;.~ ~ -, 1 ;' - , -' .-. ..J .., .., • .. ,_." 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 .. \~~~~ ,-.;,.;" 10! ·-·-------.. C&· • '. / :1 t fA 'j ·1 1 J I j 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 ~-" --.. .-.'-...,_ ....... n ~ ", ~ • . , c c C D C C C f" '" C C C C C a JlI ./ -. -. 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 ~ ~ ~ ..l2Ml ~ .- c f" ... --------------~ .... /. -, II , -- -, ~ • .. 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 • - -; .J .., ~ , - -: -- , ~ \. 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 c r­ I.. c r ... c C I -... ,".",.' !!rIIi"_.'. '" 'j ---~ ~ I ~ ~ , ; -. -- .... -. ! ... 1' ; .' -.- • 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 ~ I ~ -:r ,.~ . , , .~ ',. -~ ::: , ..., , .-' ..: -- :- J .,....." .., ~-' 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 ~ r ., 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 ~ r hi I" 100 0 C ,.. ImcrCSl , ~llg .. r w M-S ,.. , ! .. .. l-1 l-1 J.] .. l,; J.J J.) ]-1 J.] C J.j M-S M·5 0 '" I' ., ... , A-O .. r. - E ,.. l.; C C C i; <- -- ." .. . , ...... , 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 \ r '" -• L. r lot ~ W ... I. r, .- C W = a I 7 n. , / I I I I I .. ~ t ~ !'j ~ t, l !~ .~ ;~ ~i " , : .- . -: ./ 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'.· , ~ ~ j j 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 c -.. -.------~-... -------:a ", 1 "" 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 ~ : :i , ~ ..J f iJ " 1 I i 1 1 , :,.. - 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 " .. r.U I'" ' . .. I'" I.. C !'" W ~ c I I . ---' ..... ,,_ .... 7_ .. ' .. 100 :z ~ ~ IS z ~ ISO ~ ... o 40 ~ 20 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 $3,853 4,056 4,493 4,643 6,105 6,748 6,578 6,8..'1 7,5U 8,11l9 '-, __ ot=; p. ~ ... ~-'.:t ." '" • .. r • ,.. I' .. .. I.; i" ... c c ~ '1 , h -~~ r .., r ~ 1 ~ '" f~ ~ , 8000 3000 2000 1000 CITY OF PALO ALTO ASSESSED VALUES va TAX COLLECTION (unaudited) t$Mi!liQMS} Tax Collections -+--Assessed Vaue o~~~~~~~~~~~=1 1910 '911 1992 1S831U.t! 1915 19S612'S7 1985 Hag 1990 1991 19S2 lZ4 • -'--\ .:.~-:.: 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 • <'1 .,' (:,' ,: '" ,,:'~~J1t ... ~ .~'-i'C~ ,,,~,~'~"" " .. [ r- " ... -, , - -, , c c r .. c c c 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 ~ .!! (; '0 (; • c: ~ e g III ::> ..I c > • , .. ' \ 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 ... L r L r - ... " .. c c r 1M c c 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 • r .. i .. c r­... c c c c a -- II , " 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 " • - ~ C • ~ !. r .. ~ I' .. -, ' . ' ~' r" , .. -- r .. ... L,; ,.. , .. r .. .. !. I'" ~ C C t C ":.". C ~-&e ,. , , - ~ 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 -~, ==:::.:=~:-..:..,.;.;:"-.--'--~.----_ .. _-'-_._ .. -. -,-.~-,-------............. 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 , '.' 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 • City PopulatjQn(l) 55,300 55,QOO 56,100 56,200 56,ROO 56,600 56,900 56,950 57,400 56,000 ---04-, . ~ ;;. ,~ "- r "' r , ~ , ;;.. f - r­, .. r .. c c c c c a " .. - \ :'\ .' . .. . '--- ';.'.'.'.'\ .. t: ; . .''";:' . ';. .-... - I !1l ... [,I .j 1 -' I' '1 ~ i ~ • 'j " I City .1 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 ,- I~ , 41& -Calendar-year basis • ·,," ' .. 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 . .. ' - r • - i '- l - ... ... -I' ... .. i.. ~ • 1Jmil1 $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) U1§937§ lW C C C C c a I I 7 Tp • 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 ·--. . , -,~- I I I I I I I I I I I I I I I I .j - ~ ., - :- ~ ~ 1 .... 1 - ~ <-~:.:';. , ,--:.. CIIT OF PAW ALTO SINGLE AUDIT REPORTS for the year ended June 30, 1991 142 .' ,.. - ------- 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 ---"""!I~ ... _n_"l jIIRlUilli·l!IIt ........ Z'_._~.--.... -· .... -· -~ L "----..-.-'--'-~~~ '--~ -.- -. I -, ~ • ;, . , , 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 r "" r .. .. I .. r ... ... , ;., [ .. I. 7 1 ", .. Yip - I Coooers &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 " ~.' 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 • Expendjtun~s 5453,252 251695 $704.947 -L I --. ~ '- ,.. t: r, • c c I ~, i \ - 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 - • .. -----.---------_ •. _-..... ,_ ..... -------. 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 ev -, .. ,.. , i.. ,.. .. - ~ --... !"' - ,.- ... .-... -... -.. P" • - C ~ • 4 --' I , ~ t i 4 I , . , '_ .... -----------. 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 -------- • -I \.; ... , i.. L c c