HomeMy WebLinkAbout2014 CAFR PDFCity of Mountain View, California
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED
JUNE 30,2014
Mission Statement:
The City of Mountain View provides quality services
and facilities that meet the needs of a caring and diverse
community in a financially responsible manner.
CITY OF MOUNTAIN VIEW, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
PREPARED BY THE
DEPARTMENT OF FINANCE AND ADMINISTRATIVE SERVICES
Patty J. Kong, Finance and Administrative Services Director
Grace Zheng, Accounting Manager
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
Table of Contents
INTRODUCTORY SECTION
Exhibit
Letterof Transmittal .......................................................................................... ..............................1
Directoryof City Officials ................................................................................. ..............................2
CityGovernment Organization .......................................................................... ..............................3
GFOA Certificate of Achievement for Excellence in Financial Reporting ....... ..............................4
FINANCIAL SECTION
Page
IndependentAuditors' Report ....................................................................... ..............................1
Management's Discussion and Analysis ........................................................ ..............................5
Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position ..................................................................... .............................22
Statement of Activities .......................................................................... .............................23
Fund Financial Statements:
Governmental Funds:
BalanceSheet ................................................................................... .............................24
Reconciliation of Governmental Fund Balances with Governmental
Activities Net Position ................................................................. .............................27
Statement of Revenues, Expenditures and Changes in Fund Balances ........................28
Reconciliation of the Net Change in Fund Balances - Total Governmental
Funds with the Change in Net Position - Governmental Activities ............................
31
Statements of Revenues, Expenditures and Changes in Fund Balances —
Budget and Actual:
GeneralFund ................................................................................... .............................32
Shoreline Regional Park Community Fund ................................. .............................33
Below Market Housing Fund ....................................................... .............................34
Park Land Dedication Capital Projects Fund ............................... .............................35
CITY OF MOUNTAIN VIEW, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
Table of Contents
Page
FINANCIAL SECTION (Continued)
Proprietary Funds:
Statement of Net Position ................................................................. .............................36
Statement of Revenues, Expenses and Changes in Fund Net Position .........................37
Statementof Cash Flows .................................................................. .............................39
Fiduciary Funds:
Statement of Fiduciary Net Position ................................................ .............................40
Private - Purpose Trust Fund - Statement of Changes in Fiduciary Net Position ...........41
Notes to Basic Financial Statements ......................................................... .............................43
Supplemental Information:
Non -major Governmental Funds:
Combining Balance Sheets ................................... ............................... ............................106
Combining Statements of Revenues, Expenditures and Changes
inFund Balances .................................................. ............................... ............................110
Combining Schedules of Revenues, Expenditures and Changes
in Fund Balances - Budget and Actual ................ ............................... ............................114
Internal Service Funds:
Combining Statements of Net Position .................... ............................... ............................120
Combining Statements of Revenues, Expenses and Changes in Fund Net Position .......... 122
Combining Statement of Cash Flows ....................... ............................... ............................124
Agency Funds:
Combining Statements of Changes in Assets and Liabilities ................. ............................128
CITY OF MOUNTAIN VIEW, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
Table of Contents
Demographic and Economic Information:
Demographic Statistics — Last Ten Fiscal Years ....... ............................... ............................159
Principal Employers — Current Year and Nine Years Ago ...................... ............................161
Operating Information:
Full-Time Equivalent City Government Employees by Function
— Last Ten Fiscal Years ......................................... ............................... ............................162
Operating Indicators by Function /Program — Last Ten Fiscal Years ....... ............................164
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years ... ............................166
Page
STATISTICAL SECTION
Financial Trends:
Net Assets /Position by Component — Last Ten Fiscal Years ................... ............................132
Changes in Net Assets /Position — Last Ten Fiscal Years ......................... ............................134
Fund Balance, Governmental Funds — Last Ten Fiscal Years ................. ............................138
Changes in Fund Balances, Governmental Funds — Last Ten Fiscal Years .........................140
Revenue Capacity:
Assessed Value of Taxable Property — Last Ten Fiscal Years ................. ............................142
Direct and Overlapping Property Tax Rates — Last Ten Fiscal Years ..... ............................144
Principal Property Tax Payers — Current Year and Nine Years Ago ....... ............................147
Property Tax Levies and Collections — Last Ten Fiscal Years ................ ............................148
Debt Capacity:
Ratio of Outstanding Debt by Type — Last Ten Fiscal Years .................. ............................150
Ratio of General Bonded Debt Outstanding — Last Ten Fiscal Years ...... ............................152
Direct and Overlapping Governmental Activities Debt ........................... ............................153
Legal Debt Margin Information — Last Ten Fiscal Years ........................ ............................154
Bonded Debt Pledged- Revenue Coverage — Last Ten Fiscal Years ........ ............................156
Demographic and Economic Information:
Demographic Statistics — Last Ten Fiscal Years ....... ............................... ............................159
Principal Employers — Current Year and Nine Years Ago ...................... ............................161
Operating Information:
Full-Time Equivalent City Government Employees by Function
— Last Ten Fiscal Years ......................................... ............................... ............................162
Operating Indicators by Function /Program — Last Ten Fiscal Years ....... ............................164
Capital Asset Statistics by Function/Program — Last Ten Fiscal Years ... ............................166
CITY OF MOUNTAIN VIEW, CALIFORNIA
Comprehensive Annual Financial Report
For the Fiscal Year Ended June 30, 2014
Table of Contents
Page
COMPONENT UNIT FINANCIAL STATEMENTS SECTIONS
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY ...........................169
Exhibit 1
FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT
500 Castro Street • Post Office Box 7540 • Mountain View • California • 94039 -7540
650 - 903 -6316 • Fax 650 - 968 -1786
October 15, 2014
Honorable Mayor, City Council, and Members of the Mountain View Community:
We are pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of
Mountain View, California (City) for the fiscal year ended June 30, 2014. The CAFR has been
prepared in conformance with the principles and standards for financial reporting set forth by the
Governmental Accounting Standards Board (GASB) and in compliance with City Charter
Section 1106.
Responsibility for both the accuracy of the data and the completeness and fairness of the
presentation, including all disclosures, rests with City management. We believe that the data, as
presented, is accurate in all material respects, that its presentation fairly shows the financial
position and the results of the City's operations as measured by the financial activity of its
various funds, and in conjunction with the included notes, will provide the reader with an
understanding of the City's financial status and affairs.
To provide a reasonable basis for making these representations, management of the City has
established a comprehensive internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficiently reliable information
for the preparation of the City's financial statements in conformity with generally accepted
accounting principles (GAAP). Because the cost of internal controls should not outweigh their
benefits, the City's comprehensive framework of internal controls has been designed to provide
reasonable, rather than absolute, assurance that the financial statements will be free from
material misstatement.
The City's financial statements have been audited by Maze & Associates, a firm of independent
licensed certified public accountants selected by and reporting to the City Council. The goal of
the independent audit is to provide reasonable assurance that the financial statements of the City
for the fiscal year ended June 30, 2014 are free of material misstatement. The independent audit
involved examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentation. The independent
auditor concluded, based upon the audit, that there is a reasonable basis for rendering an
unmodified opinion that the City's financial statements for the fiscal year ended June 30, 2014
are fairly presented in conformity with GAAP. The independent auditors' report is presented at
the beginning of the financial section of this report.
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 2 of 8
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statements in the form of a Management's Discussion & Analysis
(MD &A). This letter of transmittal is designed to complement the MD &A and should be read in
conjunction with it. The City's MD &A can be found immediately following the report of the
independent auditors.
The CAFR is divided into the following sections:
The Introductory Section includes this letter of transmittal, an overview of the organizational
structure of the City, and prior awards received.
The Financial Section is prepared in accordance with GASB Statement No. 34 requirements,
including the MD &A, the Basic Financial Statements, and supporting notes. The Basic Financial
Statements include the government -wide financial statements that present an overview of the
City's entire financial operations and the fund financial statements that present financial
information for each of the City's major funds as well as nonmajor governmental, internal
service, and agency funds. Also included in this section is the Independent Auditors' Report on
the basic financial statements.
The Statistical Section includes tables containing historical financial data, debt statistics, and
miscellaneous social and economic data of the City that are of interest to potential investors in
our bonds and to other readers. The data includes 10 -year revenue and expenditure information,
as well as 10 years of net asset and position information.
This CAFR includes the results of financial activities of the primary government which
encompasses several enterprise activities as well as all of its component units: the Mountain
View Shoreline Regional Park Community (Shoreline Community) and the City of Mountain
View Capital Improvements Financing Authority (Financing Authority). Separate financial
statements for the Shoreline Community are included following the statistical section. There is
no legal requirement for a separate component unit report for the Financing Authority.
PROFILE OF THE GOVERNMENT
With a population of approximately 76,800, the City is located in the heart of Silicon Valley.
Occupying just over 12 square miles, Mountain View is situated about 36 miles southeast of the
City of San Francisco and 15 miles northwest of the City of San Jose (the County seat) between
the Santa Cruz Mountains and the San Francisco Bay.
The City was incorporated on November 7, 1902. The City Charter was originally approved by
voters in 1952 and requires the City to operate under a Council- Manager form of government.
Seven Councilmembers are elected at large for four -year terms that are staggered so three or four
seats are filled at the general municipal election in November of every even - numbered year.
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 3 of 8
Service on the Council is limited to two consecutive terms. Each year in January, the Council
elects one of its members as Mayor and another as Vice Mayor.
The City provides the following full range of municipal services which are reflected in this report:
• General government (City management, legal, human resources, information technology,
and financial activities);
• Public safety (Police, Fire, and paramedic services);
• Public works (engineering, design, and utility maintenance);
• Community development (community land use and development processing); and
• Culture and recreation (Library, parks, recreation, performing arts, and golf course).
The City also provides water, wastewater, and solid waste utility enterprise activities, and the
financial information regarding these activities is included in this report.
The financial reporting entity includes all funds of the primary government (i.e., the City) as well
as its component units. Component units are legally separate government entities for which the
primary government is financially accountable. Financially accountable as defined by the GASB
means the City Council exercises control through appointment of, or serving as, the governing
boards and approval of the budget. However, this does not mean the City assumes the
obligations or liabilities of these entities. The Shoreline Community and Financing Authority are
component units of the City. Therefore, these agencies are included in the reporting entity.
Additionally, the City elected to serve as the Successor Agency to the Mountain View
Revitalization Authority (Successor Agency). The Mountain View Revitalization Authority
(Authority) was a redevelopment agency that was dissolved by legislation in 2012. The
Successor Agency is not a blended or discretely presented component unit of the City, but is a
separate legal entity overseen by the Oversight Board and the State Department of Finance. The
City's role of the Successor Agency is fiduciary in nature and is reported under the private -
purpose trust fund, a fiduciary fund type.
No other agencies or activities associated with the City or utilizing a name similar to the City's
meet the established criteria for inclusion in the reporting entity and, accordingly, are excluded
from this report.
The City Council is required by the Charter to adopt a budget by June 30 to be in effect for the
ensuing fiscal year, which begins July 1. Budgets are approved at the fund and department level
(legal level of control) and may not be exceeded without City Council approval. Transfers and
adjustments between funds, departments, and capital projects must be submitted to the City
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 4 of 8
Council for approval. The City Charter requires approval by five votes of the seven - member
City Council to amend the budget.
LOCAL ECONOMY
Mountain View is centrally located in the heart of the Silicon Valley between San Jose and San
Francisco and has several major highways and freeways (101, 85, and 237) connecting the City
to the Bay Area region. Mountain View is also a regional transportation hub and has transit
stops for the Caltrain commuter train and Valley Transportation Authority (VTA) light rail
system.
During this fiscal year, Mountain View has experienced significant growth in terms of residential
and commercial development that has contributed to a diverse community. The City has seen
nearly 600 residential units created and over 275,000 million square feet of commercial /office
space start construction in this time period.
Over the years, many global companies, including Google, Intuit, Linkedln, Microsoft,
Omnicell, Siemens Medical Solutions, Symantec, and Synopsys, have recognized that Mountain
View is the right location in Silicon Valley. In addition, start -up companies find Mountain
View, particularly its downtown, a desirable place to do business because of the diversity of
retailers and restaurants and access to public transportation. Mountain View is committed to
developing and strengthening its diverse business community.
The City is also committed to preserving present services and programs while investing in our
future through prudent budgeting and infrastructure development. The steadily improving
economy, along with prudent fiscal planning, enabled the City to begin to address some
constraints and deferred plans necessitated by the Great Recession and to begin taking measured
steps forward.
Fiscal year 2014 was the first year where strong revenue growth was able to support expenditure
growth without budget reductions. As of June 2014, the unemployment rate in the City is 4.0
percent, consumer confidence has begun to rise, and housing and property values have regained
prerecessionary levels in Mountain View. In addition, the City's sound fiscal practices and
budget discipline have allowed the City to maintain its AAA credit rating, a status few other
California cities can claim.
LONG -TERM FINANCIAL PLANNING
The City annually prepares a five -year forecast and periodically a Long -Range Financial
Forecast to project revenue and expenditure trends for the next 10 years. A 10 -Year Financial
Forecast was developed for fiscal year 2015. During challenging economic periods, times of
relative stability, or even during economic growth, the practice of long -range financial
forecasting is beneficial to a city's financial planning process. While it is challenging to
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 5 of 8
accurately forecast local government revenues due to the variable nature of the revenue sources
and their connection to regional, State, national, and international economic conditions, it is
possible to identify reasonable financial trends and provide a conceptual financial picture that
will be useful to the City's decision - making. The Forecast is helping to guide the City as it
continues to confront the need to balance expenditures and revenues.
In summary, the updated projections indicate continued improvement in the economic recovery
with increases in all major revenue categories (e.g., Property Taxes, Sales Tax, Transient
Occupancy Tax, and Utility Users Tax) until the next downturn in the economic cycle which is
projected to occur within this 10 -year period. General Operating Fund expenditures are
projected with anticipated significant increases in health care and in retirement costs.
RELEVANT FINANCIAL POLICIES
The City Council has established a financial and budgetary policy which is reviewed and updated
as necessary by approval of the City Council. A comprehensive and consistent set of financial
and budgetary policies provides a basis for sound financial planning, identifies appropriate
directions for service -level developments, aids budgetary decision - making, and serves as an
overall framework to guide financial management and operations of the City.
The City's adoption of financial policies also promotes public confidence and increases the
City's credibility in the eyes of bond rating agencies and potential investors. Such policies also
provide the resources to react to potential financial emergencies in a prudent manner.
MAJOR INITIATIVES
The City of Mountain View provides quality services and facilities that meet the needs of a
caring and diverse community in a financially responsible manner. This year, the City focused
on a number of plans and projects to construct, renovate, or expand facilities for City residents.
Following Council's two -year goals, many projects focused on retaining and improving green
space and the tree canopy, improving bicycle and pedestrian mobility, and enhancing services to
residents and businesses through technology.
The economic vitality of Mountain View depends on a strong and diversified business
community. As part of the City's economic development efforts, Mountain View continues to
work aggressively to attract and retain companies with growth potential and make Mountain
View a desirable location for business. Some of the major initiatives for this past fiscal year are
outlined as follows:
Precise Plans
With the 2012 adoption of the General Plan, the City began updating the Precise Plans for three
of the five change areas identified: North Bayshore, San Antonio, and El Camino Real. The
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 6 of 8
updated Precise Plans for these areas will include new zoning regulations regarding allowed land
uses, building heights, and design standards. The Council is expected to adopt a new Precise
Plan and related Environmental Impact Report for each change area in late 2014.
Parks and Open Space Plan
The Parks and Recreation Commission began an update to the Parks and Open Space Plan,
which addresses the future open space and parks needs of residents. The Commission evaluated
current facilities and created a blueprint for future renovation and development. A draft of the
Plan will be presented to Council in the fall for approval.
Rengstorff Master Plan Approved
The City Council approved an update to the Master Plan for Rengstorff Park this year, including
recommendations for improvements to the Community Center and Aquatics Center located in the
park. The plan provides a long -term vision and general development guide for the park for the
next 20 to 30 years. The plan also includes other park improvements, such as lighting upgrades.
New Teen Center Coming
Construction of a new teen center, located at 263 Escuela Avenue on the former Rock Church
property, began this year. The new center, called The View, will offer expanded programs for
Mountain View's youth and will open in November.
Athletic Fields at Shoreline in Progress
The City began work on a new athletic field complex in the southwest corner of Shoreline Park
at Mountain View, known as the Shoreline Athletic Fields. The project will encompass 5.3 acres
of athletic fields, including one baseball and one softball diamond overlaid with soccer fields.
Emergency Operations Center Upgraded
The Fire and Public Works Departments completed a reconfiguration and upgrade of electrical,
audio, visual, workstation, and other equipment in the Emergency Operations Center, which will
also be used as a regional command training center.
Library Improvements
The Library made several improvements this fiscal year to help both users and staff, including a
new WiFi system, new public printers, a new self - checkout system, an improved check -in
system, and upgrades to the computer and catalog systems. In addition, two large pieces of the
Berlin Wall were donated by a local family and are now accessible to the public in front of the
Library.
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 7 of 8
Bike Share Services
Mountain View continued its participation as one of five Bay Area cities in a regional bike share
pilot program enabling users to check out a bike from an automated station. The Bike Share
Program provides a convenient and affordable transportation alternative or supplement to cars
and mass transit. The pilot program will run for one or two years and could transition to a
permanent program.
Technology and Innovation
The City completed a full -scale redesign of the City's website to make information easier to
access and services easier to use.
Online access to City financial data is being provided through OpenGov, a web -based program
that enables users to find and sort through information by fund, department, and expense type.
Voluntary Water Reduction
Due to the drought and low local water supplies, Mountain View implemented the first stage of
the City Water Shortage Contingency Plan this year, which was to ask customers to voluntarily
reduce water use by at least 10 percent. From February 1 through the end of May, water
consumption in Mountain View decreased a total of 17 percent, exceeding the 10 percent target.
AWARDS AND ACKNOWLEDGMENTS
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the City for its Comprehensive Annual Financial Report for
the fiscal year ended June 30, 2013. This was the 24th consecutive year the City has received this
prestigious award. In order to be awarded a Certificate of Achievement, the City had to publish
an easily readable and efficiently organized CAFR that satisfied both GAAP and applicable legal
requirements. The GFOA award is valid for a one -year period only. We believe that our current
Comprehensive Annual Financial Report continues to meet the program's requirements and we
are submitting it to the GFOA to determine its eligibility for another certificate.
In addition, the City also received the GFOA's Distinguished Budget Presentation Award for its
annual budget document for fiscal year 2014. In order to qualify for this Distinguished Budget
Presentation Award, the government's budget document had to be judged proficient as a policy
document, a financial plan, an operations guide, and a communication device.
The preparation of the Comprehensive Annual Financial Report was made possible by the
dedication of the entire Finance and Administrative Services Department staff, in particular
Grace Zheng, Accounting Manager, and Beryl Delavan, Accountant. Every member of the
Honorable Mayor, City Council, and
Citizens of Mountain View
September 12, 2014
Page 8 of 8
department deserves recognition and thanks for their commitment to the City and their
profession. We would also like to thank the members of the City Council for their policy
guidance and oversight in managing the financial operations ol'the City in a responsible manner.
Respectfully submitted,
7
finance Daniel 11, ich
Patty J KZA
. II
Finane and A R
�lminisi`r'ative City Manager
Services Director
PJK-f)f]R/7/F'IN
546-09-12-141--E
Exhibit 2
City of Mountain View
California
City Officials
City Council
Chris Clark, Mayor
John McAlister, Vice Mayor
Margaret Abe -Koga
Ronit Bryant
John Inks
R. Michael Kasperzak, Jr.
Jac Siegel
City Staff
Daniel H. Rich, City Manager
Jannie L. Quinn, City Attorney
Lorrie Brewer, City Clerk
Melissa Stevenson Diaz, Assistant City Manager
Roger Jensen, CIO /Information Technology Director
Patty J. Kong, Finance and Administrative Services Director
Randal Tsuda, Community Development Director
Michael A. Fuller, Public Works Director
J.P. de la Montaigne, Community Services Director
Rosanne M. Macek, Library Services Director
Bradlev C. Wardle, Fire Chief
Max Bosel, Police Chief
Exhibit 3
CITY GOVERNMENT ORGANIZATION
MOUNTAIN VIEW CITIZENS
CITY COUNCIL
RELATIONS
ENCOMM S M
ION L I HUMAN
LIBRARY BOARD I I MISSION
r - 1
LIBRARY
SERVICES
r
i
�TTORNEY
FINANCE AND
ADMINISTRATIVE
SERVICES
COMMUNITY
DEVELOPMENT
J
i
i
CITY MANAGER CITY CLERK
FIRE
INFORMATION
TECHNOLOGY
POLICE
KEY: 0 ELECTED LINE OF COMMAND
0 APPOINTED BY COUNCIL ------ STAFF SERVICES
0 APPOINTED BY CITY MANAGER
FISCAL YEAR 2013 -14 POSITION TOTALS: 7.0
24.0
561.25
6.25
58.13
Finance and Administrative Services Director
Councilmembers
Commission and Board Members
Full -Time and Regular Part -Time
Limited - Period
Hourly Positions
serves as City Auditor.
PARKS AND
RECREATION
COMMISSION
j _:
CITY AUDITOR*
PUBLIC -
WORKS
COMMUNITY
SERVICES
Exhibit 4
11+�
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Mountain View
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive Director /CEO
This Page Left Intentionally Blank
& ASSOCIATES
INDEPENDENT AUDITOR'S REPORT
Honorable Members of the City Council
City of Mountain View, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, each major fund, and the aggregate remaining fund information of the City
of Mountain View (City) as of and for the year ended June 30, 2014, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in
the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of the financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in 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 financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the City's preparation and fair presentation of the financial statements in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City's internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue, Suite 215 E maze @mazeassociates.com
Pleasant Hill, CA 94523 w mazeassociates.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major
fund, and the aggregate remaining fund information of the City as of June 30, 2014, and the
respective changes in financial position and, where applicable, cash flows thereof and the
respective budgetary comparisons listed as part of the basic financial statements for the year then
ended in conformity with accounting principles generally accepted in the United States of
America.
Emphasis of Matters
As discussed in Note 14, in 2011 and 2012, the state legislature enacted two laws, AB xl 26 and
AB 1484, respectively, to dissolve redevelopment agencies in California, including the Mountain
View Revitalization Authority (Authority). The City elected to serve as the Successor Agency to
the former Mountain View Revitalization Authority (Successor Agency).
In order to complete the dissolution process, the Successor Agency was charged with retiring all
remaining obligations of the Authority and disposing of the Authority's remaining real property
assets pursuant to an approved Long -Range Property Management Plan ( LRPMP). The Successor
Agency and Santa Clara County developed and presented a proposed dissolution plan to the
Oversight Board and the Department of Finance in an effort to complete the dissolution process
(Dissolution Package). On September 20, 2013, the Oversight Board approved the actions
necessary in the Dissolution Package and on October 22, 2013, the Successor Agency, City and
Shoreline Community took actions to approve and authorize the Dissolution Package to wind
down the affairs of the former Authority and terminate the Successor Agency. On November 14,
2013, the DOF reviewed the Oversight Board's approval of the Dissolution Package and approved
the Oversight Board's actions and also issued a Finding of Completion. As part of the Dissolution
Package, the Successor Agency also submitted a LRPMP. The DOF approved the LRPMP on
February 7, 2014.
Part of the Dissolution Package includes a revenue - sharing agreement with all the affected taxing
entities. See further discussion in Note 14.
The emphasis of these matters does not constitute modifications to our opinion.
2
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
Management's Discussion and Analysis to be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements as a whole. The Introductory Section,
Supplemental Information, and Statistical Section as listed in the Table of Contents are presented
for purposes of additional analysis and are not required parts of the basic financial statements.
The Supplemental Information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the Supplemental Information is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 15, 2014, on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
III e2 A boo L�4�
Pleasant Hill, California
October 15, 2014
4
This Page Left Intentionally Blank
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the City of Mountain View's (City) Comprehensive Annual Financial Report
(CAFR) presents a narrative overview and analysis of the financial activities of the City for the
fiscal year ended June 30, 2014. We encourage readers to consider the information presented
here in conjunction with additional information that has been furnished in our letter of
transmittal.
FINANCIAL HIGHLIGHTS
The following are some of the key financial highlights for the fiscal year:
• The assets of the City exceeded its liabilities at the close of the fiscal year ended June 30,
2014 by $909.1 million (net position). Of this amount, $198.0 million (unrestricted net
position) may be used to meet the City's ongoing obligations.
• The City's total net position increased by $45.3 million before special items, and increased
$68.2 million after special items, over the prior fiscal year. This compares favorably to the
$25.1 million increase in fiscal year 2013. The increase is a result of a combination of net
lower expenditures and an increase in revenues for fiscal year 2014. Property tax revenues
are higher as the median sales price of single - family homes has recovered to
prerecessionary levels and the reversal of prior year assessed value reductions. Transient
Occupancy Tax (TOT) revenue is also higher from the improving economy. Expenditures
for Public Works decreased $13.7 million as a result of an adjustment to the landfill
obligation in the prior fiscal year.
The $22.9 million increase in net position for special items is the transfer of assets from the
Successor Agency which was as a result of the dissolution of the former Revitalization
Authority as of June 30, 2014.
• Total revenues for governmental funds are $183.3 million, an increase of $7.9 million and
4.5 percent over the prior fiscal year. Revenues continued to increase as the economy
improved. Expenditures for governmental funds totaled $149.1 million, an $8.4 million
and 5.9 percent increase from the prior fiscal year. Overall, governmental funds revenues
exceeded expenditures by $34.2 million compared to $34.7 million in the prior fiscal year.
The growth in expenditures is matched by the growth in revenues.
• As of June 30, 2014, the City's governmental funds reported combined ending fund
balances of $308.2 million. Approximately 12.0 percent of this amount, $36.9 million, is
unassigned fund balance and is available to meet the City's current and future needs.
• At the end of the fiscal year, the unassigned fund balance for the General Fund is $36.9
million, or 34.6 percent of total General Fund expenditures. This is a comparable amount
to prior years and there has been no deterioration of General Fund unassigned fund balance.
k,
• The City's total long -term debt decreased by $7.5 million compared with the prior fiscal
year due to the retirement of debt during the normal course of business.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the City's basic financial
statements. The City's basic financial statements comprise three components: (1) government -
wide financial statements; (2) fund financial statements; and (3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -Wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad
overview of the City's finances in a manner similar to a private- sector business.
The Statement of Net Position presents information on all of the City's assets and liabilities, with
the difference between the two reported as net position. Over time, increases or decreases in net
position may serve as a useful indicator of whether the overall financial position of the City is
improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses
pertaining to earned but unused vacation and sick leave.
Both of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user
fees and charges (business -type activities). The governmental activities of the City include
general government, public safety, public works, community development, and culture and
recreation. The business -type activities of the City include water, wastewater, and solid waste
operations.
The government -wide financial statements include not only the City itself (known as the primary
government) but also two legally separate entities for which the City is financially accountable:
(1) Mountain View Shoreline Regional Park Community (Shoreline Community or SRPC); and
(2) City of Mountain View Capital Improvements Financing Authority (Financing Authority).
Although legally separate from the City, these component units are blended with the primary
government because of their relationship to the City. In addition, separate financial information
for the Shoreline Community component unit is included within the City's CAFR. The
Successor Agency to the former Mountain View Revitalization Authority is also a separate legal
entity and is reported as a Fiduciary Fund, Private- Purpose Trust Fund.
D
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related
accounts, which are used to maintain control over resources that have been segregated for
specific activities or objectives. The City, like other State and local governments, uses fund
accounting to ensure and demonstrate compliance with finance- related legal requirements. All
of the funds of the City can be divided into the following three categories: governmental funds,
proprietary funds, and fiduciary funds.
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in determining what
financial resources are available in the near future to finance the City's programs.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long -term impact of the government's near -term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The City maintains several individual governmental funds organized according to their type
(special revenue, debt service, and capital projects funds). Information is presented separately in
the governmental funds Balance Sheet and in the governmental funds Statement of Revenues,
Expenditures, and Changes in Fund Balances for the General Fund, Shoreline Regional Park
Community, Below Market Housing Fund, General Capital Projects Funds, and Park Land
Dedication Capital Projects Fund, all of which are considered to be major funds. Data from the
remaining governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form of combining
statements elsewhere in this report.
The City adopts an annual appropriated budget for its major funds except the General Capital
Projects Fund, which is budgeted on a project basis. Budgetary comparison statements have
been provided for these funds to demonstrate compliance with budgets.
Proprietary funds are generally used to account for services for which the City charges
customers—either external customers or internal customers or departments of the City.
Proprietary funds provide the same type of information as shown in the government -wide
financial statements, only in more detail. The City maintains two different types of proprietary
funds.
7
Enterprise funds are used to report the same functions presented as business -type activities in the
government -wide financial statements. The City uses enterprise funds to account for its water,
wastewater, and solid waste operations, all of which are considered to be major funds of the City.
Internal service funds are used to accumulate and allocate costs internally among the City's
various functions. The City uses internal service funds to account for its fleet maintenance and
equipment replacement and various other self- insurance liability programs. Because these
services predominantly benefit governmental rather than business -type functions, they have been
included within governmental activities in the government -wide financial statements. The
internal service funds are combined into a single, aggregated presentation in the proprietary fund
financial statements. Individual fund data for the internal service funds is provided in the form
of combining statements elsewhere in this report.
Fiduciary funds are used to account for resources held for the benefit of employees of the City
and parties outside the City. Since the resources of these funds are not available to support the
City's own programs, they are not reflected in the government -wide financial statements. The
accounting used for private- purpose trust fiduciary funds is much like that used for proprietary
funds.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government -wide and fund financial statements.
Combining Statements and Schedules
The combining statements referred to earlier in connection with nonmajor governmental funds,
internal service funds, and agency funds are presented immediately following the notes to the
financial statements.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Since fiscal year 2002, the City has presented its financial statements under the reporting model
required by the Governmental Accounting Standards Board (GASB) Statement No. 34, Basic
Financial Statements, and Management's Discussion and Analysis (MD &A) for State and Local
Governments. Two fiscal years of financial information in the GASB Statement No. 34 format
and a comparative analysis of government -wide data are included in this report. In addition,
adjustments have been made to some prior fiscal year balances to conform to current fiscal year
presentation formats.
Analysis of Net Position
As noted earlier, net position may serve as a useful indicator of a government's overall financial
position. For the City, assets exceeded liabilities by $909.1 million at the end of the fiscal year.
The following is a condensed summary of the City's net position for governmental and business -
type activities:
Statement of Net Position
(Dollars in thousands)
Liabilities:
Current and other
liabilities
Governmental
Business -Type
Total
2,761
20,451
Activities
Activities
102,087
108,558
11,710
2014 2013
2014 2013
2014
2013
Assets:
124,158
14,322
14,984
134,248
Current and other
$400,357 361,007
51,649 45,840
452,006
406,847
assets
Net investment in
Capital assets
497,806 479,014
93,390 94,155
591,196
573,169
Total assets
898,163 840,021
145,039 139,995
1,043,202
980,016
Deferred outflows:
516,099
Restricted
171,881
148,253
Deferred charge on
-0-
171,881
148,253
Unrestricted
refunding
149 -0-
-0- -0-
149
-0-
Liabilities:
Current and other
liabilities
17,839
15,600
2,612
2,761
20,451
18,361
Noncurrent liabilities
102,087
108,558
11,710
12,223
113,797
120,781
Total liabilities
119,926
124,158
14,322
14,984
134,248
139,142
Net position:
Net investment in
capital assets
456,410
433,059
82,850
83,040
539,260
516,099
Restricted
171,881
148,253
-0-
-0-
171,881
148,253
Unrestricted
150,095
134,551
47,867
41,971
197,962
176,522
Total net position
$778386
715.863
130.717
125.011
909.103
840.874
The largest portion of the City's net position at $539.3 million, or 59.3 percent, reflects its
investment in capital assets (e.g., land, buildings, other improvements, etc.) less any related debt
used to acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens and therefore, these assets are not available for future spending. Although
the City's investment in its capital assets is reported net of related debt, it should be noted the
resources needed to repay this debt must be provided from other sources since the capital assets
themselves cannot be liquidated for these liabilities.
An additional portion of the City's net position of $171.9 million, or 18.9 percent, represents
resources that are subject to external restrictions on how they may be used.
Another significant portion of the City's net position, $198.0 million or 21.8 percent, represents
unrestricted net position, which may be used to meet the City's ongoing obligations. For
governmental activities, the City reported a positive balance of $150.1 million of unrestricted net
9
position, and for business -type activities, the City reported a positive balance of $47.9 million of
unrestricted net position. The unrestricted net position is City -wide and may not represent
resources available for budgetary purposes.
At the end of the current fiscal year, the City is able to report positive balances in all three
categories of net position for the governmental and the business -type activities.
10
Analysis of Statement of Activities
The following table indicates the changes in net position for governmental and business -type
activities:
Statement of Activities
(Dollars in thousands)
Governmental Business -Type Total
Activities Activities
2014 2013 2014 2013 2014 2013
Revenues:
Program Revenues:
Charges for services
$ 56,354
56,419
56,118
51,826
112,472
108,245
Operating grants and
contributions
4,507
4,643
-0-
-0-
4,507
4,643
Capital grants and contributions
21,859
20,293
187
776
22,046
21,069
General Revenues:
Property taxes
62,601
58,515
-0-
-0-
62,601
58,515
Sales taxes
16,935
16,744
-0-
-0-
16,935
16,744
Motor vehicle in lieu
209
222
-0-
-0-
209
222
Transient occupancy tax
5,595
4,668
-0-
-0-
5,595
4,668
Utility users tax
7,335
7,954
-0-
-0-
7,335
7,954
Nonregulatory franchise and
business
4,633
4,241
-0-
-0-
4,633
4,241
Interest earnings
3,870
966
394
22
4,264
988
Gain on sale of capital assets
1,091
-0-
-0-
-0-
1,091
-0-
Total revenues
184,989
174,665
56,699
52,624
241,688
227,289
Expenses:
General government
32,517
31,825
-0-
-0-
32,517
31,825
Public safety
51,719
50,818
-0-
-0-
51,719
50,818
Public works
13,264
26,967
-0-
-0-
13,264
26,967
Community development
15,013
8,134
-0-
-0-
15,013
8,134
Culture and recreation
30,623
29,703
-0-
-0-
30,623
29,703
Interest on long -term debt
2,998
3,368
-0-
-0-
2,998
3,368
Water
-0-
-0-
24,168
26,199
24,168
26,199
Wastewater
-0-
-0-
13,962
14,167
13,962
14,167
Solid Waste
-0-
-0-
12,124
10,989
12,124
10,989
Total expenses
146,134
150,815
50,254
51,355
196,388
202,170
Change in net position before
transfers
38,855
23,850
6,445
1,269
45,300
25,119
Transfers, net
739
510
(739)
(510)
-0-
-0-
Change in net position before
special items
39,594
24,360
5,706
759
45,300
25,119
Special items:
Capital assets contributed from
Successor Agency
16,679
-0-
-0-
-0-
16,679
-0-
Land held contributed from
Successor Agency
6,250
-0-
-0-
-0-
6,250
-0-
Change in net position
62,523
24,360
5,706
759
68,229
25,119
Beginning net position
715,863
691,503
125,011
124,252
840,874
815,755
Ending net position
$778.386
715.863
130.717
125.011
909.103
840.874
11
The City's net position overall increased by $45.3 million before special items, and $68.2 million
after special items, during the current fiscal year. This increase is primarily related to increased
revenues resulting from the improved economy and increases in charges for services for the
business -type activities.
Transient
Occupancy Tax
3.0%
Intergoverro
0.1%
Sales Taxes
9.2%
PI
33.8%
Governmental Activities
Revenues by Source
Nonregulatory
Utility LJ -ers Tax
Franchise and Interest Earnings
Business ` 2.1
1 2.5% /
.,ur��u� "ants and
Contributions
11.8%
Gain on Sale of
Capital Assets
0.6%
Charges for
Services
30.5%
Operating Grants
and Contributions
2.4%
12
Governmental activities increased the City's net position by $39.6 million before special items
and $62.5 million after special items. Key factors of this are as follows:
• Total revenues increased to $185.0 million, $10.3 million higher than the prior fiscal year.
Many revenue sources have increased due to the continued improvement of the economy.
Capital grants and contributions contributed $1.6 million more than the prior fiscal year as
additional grants and contributions were obtained. Property taxes increased $4.1 million
over the prior fiscal year, as the real estate market has recovered and due to the reversal of
prior year assessed value reductions. TOT revenue is also higher from the improved
economy. Interest earnings are higher than prior year by $2.9 million due to the change in
market value and there was a gain on sale of capital assets of $1.1 million during the
current fiscal year.
• Overall expenses decreased $4.7 million or 3.1 percent from the prior fiscal year, primarily
due to the increase in public works expenditures in the prior year related to the upward
revision of the landfill containment cost obligation.
Based on the above, the governmental change in net position is an increase of $39.6 million
before special items, and $62.5 million after special items, compared to the $24.4 million
increase in the prior fiscal year.
Business -type activities increased the City's net position by $5.7 million. Key factors for this
increase are as follows:
• Water net position increased by $4.6 million, primarily due to an increase in charges for
sales and services revenues resulting from rate adjustments adopted and increased water
usage for the first half of the fiscal year due to dry water conditions.
• Wastewater net position increased by $1.5 million due to a combination of an anticipated
increase in charges and sales and services and expenditures lower than projected.
• Solid waste net position decreased by $361,000, primarily due to higher cost of sales and
services.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with
finance- related legal requirements.
Governmental Funds —The focus of the City's governmental funds is to provide information on
near -term inflows, outflows, and balances of resources that are available for spending. Such
information is useful in assessing the City's financing requirements. In particular, unassigned
fund balance may serve as a useful measure of a government's net resources available for
spending at the end of the fiscal year. Types of governmental funds reported by the City include
the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Project Funds.
13
As of the end of the current fiscal year, the City's governmental funds reported combined ending
fund balances of $308.2 million, an increase of $31.4 million in comparison to the prior fiscal
year. The significant components for the increase are the $9.7 million in Below Market Housing
Fund, $13.1 million increase in the Park Land Dedication Capital Projects Fund, and $4.8 million
in Other Governmental Funds. The increases in Other Governmental Funds are primarily related
to increased development activity, generating additional revenues related to Construction
Conveyance Tax ($1.1 million) and Downtown Parking In -Lieu fees ($2.6 million). An
additional increase is from Grants received ($1.4 million).
Approximately $36.9 million of total fund balance constitutes unassigned fund balance and is
available for spending at the City's discretion. The remainder of fund balance is nonspendable
($3.3 million), restricted ($218.7 million), committed ($47.8 million), and assigned ($1.5
million), none of which is available for new discretionary spending. The restricted fund balance
increased to $218.7 million or $26.9 million over the prior fiscal year. This is a result of the fund
balances increasing as mentioned above.
For the fiscal year ended June 30, 2014, revenues for governmental funds overall totaled $183.3
million, which represents an increase of $7.9 million from the prior fiscal year- again, primarily
related to higher taxes and fees received related to the improved economy. Expenditures for
governmental funds totaling $149.1 million, is an increase of $8.4 million from the prior fiscal
year. This increase is primarily related to an increase in General Government. For the fiscal
year ended June 30, 2014, revenues for governmental funds exceeded expenditures by $34.2
million.
The General Fund is used to account for all revenues and expenditures necessary to carry out
basic government activity of the City that is not accounted for through other funds. At the end of
fiscal year 2014, the unassigned fund balance is $36.9 million, $1.7 million higher than the prior
fiscal year, while total fund balance is $89.4 million.
As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total fund expenditures. Unassigned fund balance of $36.9
million represents 41.2 percent of total fund balance, 34.6 percent of fund expenditures of $106.7
million, while total fund balance represents 83.8 percent of that same amount. All are
comparable to the prior fiscal year.
The fund balance of the City's General Fund increased by $4.6 million during the current fiscal
year. Total General Fund revenues increased to $108.2 million, up $7.9 million from $100.3
million in the prior fiscal year, as revenues, primarily tax and fee revenues, are growing with the
improved economy.
The Shoreline Regional Park Community Fund receives property tax increment revenues on
property within the Shoreline Community. The Fund accounts for the revenues and expenditures
of the Shoreline Community.
Revenues are $32.0 million in fiscal year 2014, an increase of $1.7 million. Property tax
increment revenues, the primary revenue source for this fund, increased to $31.0 million in fiscal
14
year 2014, up $1.1 million from fiscal year 2013, primarily due to increased values from changes
in ownership and the 2.0 percent California Consumer Price Index. Expenditures are $17.0
million in fiscal year 2014, comparable to the prior fiscal year. Of this amount, $13.4 million
was expended on general government and $2.6 million on culture and recreation.
In addition, there is $20.6 million of transfers out, $6.8 million was transferred to various Debt
Service Funds for payments of principal and interest on outstanding debt, $8.8 million was
transferred for capital improvement projects, $4.8 million to the General Fund for repayment of
advances and forgiveness of outstanding debt, and $107,000 was transferred to internal service
funds for equipment replacement contributions. The fiscal year 2014 year -end fund balance of
$48.8 million may be used only for expenditures of the Shoreline Community.
The Below Market Housing Fund accounts for fees paid by developers to provide for increasing
and improving the supply of moderate- to lower- income housing.
Revenues are $8.8 million in fiscal year 2014, comparable to the prior fiscal year, but higher than
normal due to a high level of development activity as a result of the improved economy. The
fund's fiscal year 2014 year -end fund balance of $37.4 million may be used for increasing the
supply of moderate- to lower- income housing.
The General Capital Projects Fund accounts for all general capital improvements not funded
from proprietary funds.
Revenues are $3.8 million in fiscal year 2014, an increase of $1.1 million from the prior fiscal
year, primarily related to intergovernmental revenues as additional grants were received.
Expenditures are $13.7 million in fiscal year 2014, $1.6 million less than the prior fiscal year.
All of the $13.7 million was expended on capital outlay. Net transfers from other funds are
$13.6 million in fiscal year 2014 for capital projects. The Fund's fiscal year 2014 year -end fund
balance of $35.6 million may be used for capital projects.
The Park Land Dedication Capital Projects Fund accounts for revenues derived from fees on
residential subdivisions used for park and recreation projects.
Revenues are $12.9 million in fiscal year 2014, comparable to the prior fiscal year, but higher
than normal due to a high level of development activity as a result of the improved economy.
The fund's fiscal year 2014 year -end fund balance of $37.5 million may be used for park and
recreation projects.
Proprietary Funds —The City's proprietary fund statements provide the same type of information
found in the government -wide financial statements but in more detail.
At the end of the fiscal year, the unrestricted net positions for the Water, Wastewater, and Solid
Waste Funds are $23.9 million, $18.3 million, and $5.7 million, respectively. The total increase
in net position for the enterprise funds is $5.7 million. The internal service funds, which are used
to account for certain governmental activities, have an unrestricted net position of $28.2 million.
15
Factors concerning the finances of these funds have been addressed previously in the discussion
of the City's business -type activities.
Fiduciary Funds —The City maintains fiduciary funds for the assets held in trust for the benefit
of agencies outside of the City or employees. As of June 30, 2014, the assets of the Agency
funds totaled $30.3 million. This represents a decrease of $1.1 million in total assets for the
Agency funds since June 30, 2013, which is primarily related to the timing of payroll accruals
and the amortization of the prepayment of ground lease revenues to be recognized over the 53-
year life of the lease.
A Private Purpose Trust Fund for the assets of the Successor Agency has no net position as of
June 30, 2014 due to the wind -down process completed in fiscal year 2014. Assets and liabilities
are allocated per the approved dissolution package.
GENERAL FUND BUDGETARY HIGHLIGHTS
General Fund differences between the original fiscal year 2014 budget and the final amended
budget resulted in an increase of $1.2 million in budgeted revenues (primarily related to services
charges and miscellaneous revenues) and a $11.6 million increase in expenditure appropriations.
Approximately $2.7 million of the adjustment is related to prior year encumbrances that carry
forward at the beginning of the fiscal year as specified in the City's Charter. An additional $6.3
million of appropriations related to the dissolution of the Successor Agency and $1.5 million of
appropriations was established for the payment of compensated absences. The balance of
adjustments was made midyear for various operational needs not anticipated during budget
adoption and grants or reimbursements received during the fiscal year.
General Fund revenues are $6.4 million or 6.3 percent higher than the final amended budget for
the fiscal year as previously discussed. This is a result of revenues increasing due to the
improved economy. Expenditures for the General Fund are $15.4 million lower than the final
amended budget for the fiscal year. All departments' expenditures are lower than budget due to
salary and benefit savings incurred from vacant positions and the underspending in various
services and supplies accounts. The $7.0 million favorable variance in capital outlay is primarily
related to appropriations of $6.6 million for the purchase of property that has not occurred. The
effect of the underutilization of appropriations resulted in the positive net change in fund
balances compared to budget of $21.5 million for the fiscal year.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City's capital assets for its governmental and business -type activities as of June 30, 2014
amount to $591.2 million (net of accumulated depreciation). Capital assets include land,
construction in progress, buildings, improvements other than buildings, machinery and
equipment, and infrastructure. The total net increase in the City's capital assets for fiscal year
2014 is $18.0 million or 3.1 percent.
16
Capital assets, net of depreciation, for the governmental and business -type activities are
presented below to illustrate changes from the prior year:
Land
Construction in progress
Buildings
Improvements other than
buildings
Machinery and equipment
Traffic signals
Streetlights
Bridges and culverts
Sidewalks, curbs and gutters
Streets and roads
Less accumulated depreciation
Capital Assets
(Dollars in thousands)
Governmental
Business -Type
Total
Activities
Activities
2014
2013
2014
2013
2014
2013
$ 96,697
90,475
220
220
96,917
90,695
35,284
55,342
9,566
12,668
44,850
68,010
164,543
133,786
8,748
8,927
173,291
142,713
163,457
150,312
129,730
123,958
293,187
274,270
33,026
32,561
5,041
5,064
38,067
37,625
10,570
9,387
-0-
-0-
10,570
9,387
7,947
7,166
-0-
-0-
7,947
7,166
18,215
9,715
-0-
-0-
18,215
9,715
111,320
105,852
-0-
-0-
111,320
105,852
257,990
252,295
-0-
-0-
257,990
252,295
40( 1.243)
(367,877)
( 59,915)
5( 6,682)
46( 1.158)
42( 4.559)
$497.806
479.014
93.390
94.155
591.196
573.169
Major capital asset events during the current fiscal year included the following:
• Total capital assets increased a net total of $18.0 million with a net $36.6 million increase
in accumulated depreciation.
• Land increased by $6.2 million with the acquisition of the former Revitalization Authority
properties transferred to the City.
• Construction in progress decreased by $23.2 million as projects were completed and
capitalized for Permanente Creek Pedestrian and Bike Overcrossing, Fire Station No. 5,
Stevens Creek Trail Sleeper Avenue to Dale Avenue and Heatherstone Way, and Library
Space Reallocation.
• Buildings increased by $30.6 million primarily due to $22.5 million of building assets
transferred from the dissolution of the Successor Agency and due to the completion of Fire
Station No. 5.
• Total improvements other than buildings increased by $18.9 million. Some of the major
assets capitalized from construction in progress were the Stevens Creek Trail Sleeper
Avenue to Dale Avenue and Heatherstone Way, Library Space Reallocation, and
miscellaneous utility line rehabilitation and replacement projects.
• Total bridges and culverts increased by $8.5 million due to the completion of Permanente
Creek Pedestrian and Bike Overcrossing.
17
• Total sidewalks, curbs, and gutters increased by $5.5 million due to the completion of
Shoreline sidewalk replacement project, miscellaneous installation of ADA curbs and
ramps, sidewalk repairs, and $3.9 million transferred from the dissolution of the Successor
Agency.
• Total streets and roads increased by $5.7 million due to a transfer of $3.1 million from the
dissolution of the Successor Agency and the major additions for the completion of San Luis
Avenue reconstruction and general street resurfacing.
For government -wide financial statement presentation, all depreciable capital assets were
depreciated from acquisition date to the end of the current fiscal year. Governmental fund
financial statements record capital asset purchases as expenditures.
The City's infrastructure assets are recorded at historical cost in the government -wide financial
statements as required by GASB Statement No. 34.
Additional information about the City's capital assets can be found in Note 6 to the financial
statements.
Debt Administration
As of June 30, 2014, the City had $102.1 million of outstanding long -term obligations related to
governmental activities and $11.7 million related to business -type activities, for a total of $113.8
million. Debt outstanding as of June 30, 2014 with a comparison to prior year and the net
change follows:
Debt Outstanding
(Dollars in thousands)
IN
As of
As of
June 30, 2014
June 30, 2013
Net Change
Tax allocation bonds
$ 36,085
52,300
(16,215)
Certificates of participation
3,655
4,738
(1,083)
Bank Loan
12,135
0
12,135
Special assessment debt
241
274
(33)
Compensated absences
8,379
8,512
(133)
Landfill containment
32,112
34,582
(2,470)
Claims liabilities
9,480
8,691
789
Total governmental activity debt
102,087
109,097
(7,010)
Business -type activities
11,710
12,223
513)
Total
$113,797
121,320
U.523
IN
The most significant change in the governmental activities long -term debt was related to the
retirement of principal during the normal course of business. The City Charter limits bonded
indebtedness for General Obligation bonds to 15.0 percent of the total assessed valuation of all
real and personal property within the City. The City has no general obligation debt outstanding
as of June 30, 2014.
Standard & Poor's reconfirmed the City's underlying "AAA" credit rating in July 2014.
Additional information regarding the City's long -term obligations can be found in Note 7 to the
financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
• The City's revenues performed better than projected as the economy continued its recovery
during the fiscal year. There was a significant increase in development activity that
resulted in increased revenues. Revenues are projected to continue to improve and be
higher for next fiscal year.
• Overall, property taxes for the City are expected to increase in the upcoming fiscal year
based on increases in property taxes from new development, changes in ownership, and the
0.454 increase in assessed values due to the positive California Consumer Price Index.
• Sales tax revenue is expected to be higher than this fiscal year as the economy continues to
improve. The "Triple Flip" legislation taking 25.0 percent of local sales tax will continue
to be replaced by an equal amount of property taxes by the State.
• Other taxes comprised of TOT and Utility Users Tax (UUT) are anticipated to continue to
rise for fiscal year 2015 as a result of the improved economy.
• Average increases in water, wastewater, and solid waste rates of 7.0 percent, 4.0 percent,
and 2.0 percent, respectively, have been adopted for fiscal year 2015.
All of these factors were considered in preparing the City's budget for fiscal year 2015.
REQUEST FOR INFORMATION
These financial statements are intended to provide citizens, taxpayers, investors, and creditors
with a general overview of the City's finances. Questions concerning any of the information
provided in this report or requests for additional financial information should be directed to the
Finance and Administrative Services Department, 500 Castro Street, P.O. Box 7540, Mountain
View, California, 94039 -7540, orfinance@mounlainview.gov.
PJK /7 /FIN
546- 09- 12- 14R -CAFR
19
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Statement of Net Position
June 30, 2014 (Dollars in Thousands)
Assets:
Cash and investments (Note 3)
Restricted cash and investments (Note 3)
Receivables:
Accounts (net of allowances)
Taxes
Special assessments
Interest
Loans (Note 4)
Internal balances (Note 5)
Inventory
Deposits and prepaid costs
Net OPEB assets (Note 9)
Capital assets (Note 6):
Land and construction in progress
Other capital assets, net of depreciation
Total assets
Deferred outflows of resources:
Deferred charge on refunding
Total deferred outflows of resources
Liabilities:
Accounts payable and accrued costs
Refundable deposits
Unearned revenue
Noncurrent liabilities (Notes 7 & 10):
Due within one year
Due in more than one year
Total liabilities
Net position (Note 11):
Net investment in capital assets
Restricted for:
Capital projects
Debt service
Low and moderate income housing
Shoreline Regional Park Community
Grants and regulations
Unrestricted
Total net position
See accompanying notes to financial statements.
Governmental
Business - Type
12,381
Activities
Activities
Total
$ 314,258
31,683
345,941
12,296
0
12,296
1,477
8,374
9,851
4,212
0
4,212
206
0
206
1,225
152
1,377
40,592
0
40,592
(11,440)
11,440
0
394
0
394
14
0
14
37,123
0
37,123
131,981
9,786
141,767
365,825
83,604
449,429
898,163
145,039
1,043,202
149
0
149
149
0
149
9,988
2,393
12,381
3,261
219
3,480
4,590
0
4,590
12,432
800
13,232
89,655
10,910
100,565
119,926
14,322
134,248
456,410
82,850
539,260
99,820
0
99,820
255
0
255
13,128
0
13,128
40,467
0
40,467
18,211
0
18,211
150,095
47,867
197,962
$ 778,386
130,717
909,103
22
CITY OF MOUNTAIN VIEW, CALIFORNIA
Statement of Activities
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
See accompanying notes to financial statements.
23
Net (Expense) Revenue and
Program Revenues
Changes in Net Position
Operating
Capital
Charges for
Grants and
Grants and
Governmental
Business -type
Functions /Programs Expenses
Services
Contributions
Contributions
Activities
Activities
Total
Governmental activities:
General government $ 32,517
24,584
385
0
(7,548)
(7,548)
Public safety 51,719
1,988
261
0
(49,470)
(49,470)
Public works 13,264
10,276
2,392
9,376
8,780
8,780
Community development 15,013
14,483
1,322
0
792
792
Culture and recreation 30,623
5,023
147
12,483
(12,970)
(12,970)
Interest on long -term debt 2,998
0
0
0
(2,998)
(2,998)
Total governmental activities 146,134
56,354
4,507
21,859
(63,414)
(63,414)
Business -type activities:
Water 24,168
28,887
0
58
0
4,777
4,777
Wastewater 13,962
15,367
0
129
0
1,534
1,534
Solid Waste 12,124
11,864
0
0
0
(260)
(260)
Total business-type activities 50,254
56,118
0
187
0
6,051
6,051
Total $ 196,388
112,472
4,507
22,046
(63,414)
6,051
(57,363)
General revenues and transfers:
Taxes:
Property taxes
62,601
0
62,601
Sales taxes
16,935
0
16,935
Intergovernmental revenue
209
0
209
Transient occupancy tax
5,595
0
5,595
Utility users tax
7,335
0
7,335
Nonregulatory franchise and business, unrestricted
4,633
0
4,633
Interest earnings
3,870
394
4,264
Gain on sale of capital assets
1,091
0
1,091
Transfers, net (Note 5)
739
(739)
0
Total general revenues and transfers
103,008
(345)
102,663
Changes in net position before special items
39,594
5,706
45,300
Special Items (Note 14)
Capital assets contributed from Successor Agency
16,679
0
16,679
Land held contributed from Successor Agency
6,250
0
6,250
Change in net position
62,523
5,706
68,229
Beginning net position
715,863
125,011
840,874
Ending net position
$ 778,386
130,717
909,103
See accompanying notes to financial statements.
23
CITY OF MOUNTAIN VIEW, CALIFORNIA
Governmental Funds
Balance Sheet
June 30, 2014 (Dollars in Thousands)
Assets:
Cash and investments (Note 3)
Restricted cash and investments (Note 3)
Receivables:
Accounts (net of allowances)
Taxes
Special assessments
Interest
Loans (Note 4)
Inventory
Deposits and prepaid costs
Advances to other funds (Note 5)
Total assets
Liabilities, deferred inflows of resources and fund balances:
Liabilities:
Accounts payable and accrued costs
Refundable deposits
Unearned revenue
Advances from other funds (Note 5)
Total liabilities
Deferred inflows of resources:
Unavailable revenue - special assessment
Total deferred inflows of resources
Fund balances (Note 11):
$ 3,906
Shoreline
151
1,833
3,248
Regional
Below
General
3,402
Park
Market
Capital
General
Community
Housing
Projects
10,556
5,890
980
$ 91,441
46,893
27,270
48,078
0
7,569
0
150
827
13
0
632
3,985
0
0
0
0
0
0
0
452
250
101
0
0
0
11,000
0
327
0
0
0
11
0
0
0
2,938
0
0
0
$ 99,981
54,725
38,371
48,860
$ 3,906
2,949
151
1,833
3,248
3
0
0
3,402
0
829
0
0
2,938
0
11,440
10,556
5,890
980
13,273
Unassigned
36,880
0
0
0
0
0
0
0
0
Nonspendable
3,276
0
0
0
Restricted
0
48,835
37,391
35,587
Committed
47,771
0
0
0
Assigned
1,498
0
0
0
Unassigned
36,880
0
0
0
Total fund balances
89,425
48,835
37,391
35,587
Total liabilities, deferred inflows of resources, and fund balances
$ 99,981
54,725
38,371
48,860
See accompanying notes to financial statements.
24
Park
Land
Dedication
Capital
Projects
Other Total
Governmental Governmental
Funds Funds
37,315
26,859
277,856
0
3,007
10,726
0
5
1,477
0
227
4,212
0
206
206
153
131
1,087
0
29,592
40,592
0
67
394
0
0
11
0
0
2,938
37,468
60,094
339,499
0
50
8,889
0
10
3,261
0
359
4,590
0
0
14,378
0
419
31,118
0
208
208
0
208
208
0
67
3,343
37,468
59,418
218,699
0
0
47,771
0
0
1,498
0
(18)
36,862
37,468
59,467
308,173
37,468
60,094
339,499
25
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Reconciliation of Governmental Fund Balances with
Governmental Activities Net Position
June 30, 2014 (Dollars in Thousands)
TOTAL FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for Governmental Activities in the Statement of Net Position are
different from those reported in the Governmental Funds because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources
and therefore are not reported in the Governmental Funds.
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal Service Funds are not governmental funds. However, they are used by management to charge
the costs of certain activities, such as insurance and central services and maintenance, to individual
governmental funds. The net current assets of the Internal Service Funds are therefore included
in Governmental Activities in the following line items:
Statement of Net Position
Cash and investments
Restricted cash and investments
Interest receivable
Deposits and prepaids
Accounts payable and accrued costs
Accrued compensated absences
Accrued self - insurance costs
ACCRUAL OF NON - CURRENT REVENUES AND EXPENSES
Revenues in the Statement of Activities that do not provide current financial resources
are not reported as revenues in the funds.
LONG TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and
therefore are not reported in the Governmental Funds:
Noncurrent liabilities
Deferred amount on refunding
Net OPEB asset
Interest payable
NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
27
$ 308,173
497,806
36,402
1,570
138
(231)
(211)
(9,480)
208
(92,396)
149
37,123
(868)
$ 778,386
CITY OF MOUNTAIN VIEW. CALIFORNIA
Governmental Funds
Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Excess (deficiency) of revenues
over (under) expenditures
1,525
Shoreline
8,550
(9,879)
Other financing sources (uses):
Regional
Below
General
Sale of capital assets
1,238
Park
Market
Capital
Proceeds from debt issuance
General
Community
Housing
Projects
Payment to refund bond escrow agent
0
0
Revenues:
0
Transfers in (Note 5)
6,454
1,046
Taxes
$ 61,256
30,972
0
0
Licenses, permits and fees
10,858
0
0
0
Fines and forfeitures
1,068
0
0
0
Use of money and property
12,162
782
347
742
Intergovernmental revenues
683
20
0
2,872
Charges for services
19,688
125
8,406
3
Other
2,498
60
2
168
Total revenues
108,213
31,959
8,755
3,785
Expenditures:
Current:
General government
16,694
13,352
0
0
Public safety
50,234
112
0
0
Public works
8,704
636
0
0
Community development
13,683
254
205
0
Culture and recreation
16,984
2,598
0
0
Capital outlay
389
14
0
13,664
Debt service:
Principal repayment
0
0
0
0
Interest and fiscal charges
0
0
0
0
Total expenditures
106,688
16,966
205
13,664
Excess (deficiency) of revenues
over (under) expenditures
1,525
14,993
8,550
(9,879)
Other financing sources (uses):
Sale of capital assets
1,238
0
231
0
Proceeds from debt issuance
0
0
0
0
Payment to refund bond escrow agent
0
0
0
0
Transfers in (Note 5)
6,454
1,046
993
16,179
Transfers (out) (Note 5)
(4,618)
(20,569)
(54)
(2,565)
Total other financing sources (uses)
3,074
(19,523)
1,170
13,614
Net change in fund balances
4,599
(4,530)
9,720
3,735
Beginning fund balances
84,826
53,365
27,671
31,852
Ending fund balances
$ 89,425
48,835
37,391
35,587
See accompanying notes to financial statements.
28
Park
Land
Dedication
Capital
Projects
Other Total
Governmental Governmental
Funds Funds
0
6,578
98,806
12,480
339
23,677
0
0
1,068
451
394
14,878
0
4,265
7,840
0
5,588
33,810
0
484
3,212
12,931
17,648
183,291
0
429
30,475
0
171
50,517
0
0
9,340
0
352
14,494
0
2,322
21,904
57
24
14,148
0
5,296
5,296
0
2,895
2,895
57
11,489
149,069
12,874
6,159
34,222
0
0
1,469
0
12,135
12,135
0
(12,035)
(12,035)
273
9,083
34,028
(43)
(10,542)
(38,391)
230
(1,359)
(2,794)
13,104
4,800
31,428
24,364
54,667
276,745
37,468
59,467
308,173
.•.
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Reconciliation of the
Net Change in Fund Balances -
Total Governmental Funds with the
Change in Net Position - Governmental Activities
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances, which measures only changes in current assets and current
liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the
Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the Statement of Activities
are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is capitalized and allocated over
their estimated useful lives and reported as depreciation expense.
The capital outlay and other capitalized expenditures are added back to fund balance
Depreciation expense is deducted from the fund balance
(Depreciation expense is net of Internal Service Fund depreciation of
$21 which has already been allocated to serviced funds.)
Capital asset retirements are deducted from fiend balance
Capital assets contributed from Successor Agency
Land held contributed from Successor Agency
LONG -TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the governmental funds, but
in the Statement of Net Position the repayment reduces long -term liabilities.
Proceeds from long -term debt issuance
Repayment of debt principal is added back to fiend balance
Amortization of discounts and premiums on refunding is deducted from fund balance
ACCRUAL OF NON - CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of
current financial resources and therefore are not reported as revenues or expenditures in
governmental funds (net change):
Long -term compensated absences
Long -term landfill containment amortization
Net OPEB asset
Interest payable
Unearned revenue
Capital grants and contributions
ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal Service Funds are used by management to charge the costs of certain activities,
such as equipment acquisition, maintenance, and insurance to individual funds.
The portion of the net revenue (expense) of these Internal Service Funds arising out
of their transactions with governmental funds is reported with governmental activities,
because they service those activities.
Change in Net Position - All Internal Service Funds
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
31
31,428
16,068
(19,993)
(378)
16,679
6,250
(100)
5,296
(390)
143
2,470
457
287
(35)
187
4,154
$ 62,523
CITY OF MOUNTAIN VIEW, CALIFORNIA
General Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
See accompanying notes to financial statements.
32
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Taxes
$ 59,425
59,425
61,256
1,831
Licenses, permits and fees
8,789
8,789
10,858
2,069
Fines and forfeitures
893
893
1,068
175
Use of money and property
11,983
12,042
12,162
120
Intergovernmental revenues
559
604
683
79
Charges for services
17,431
18,160
19,688
1,528
Other
1,510
1,892
2,498
606
Total revenues
100,590
101,805
108,213
6,408
Expenditures:
Current:
General government:
City council
310
337
195
142
City clerk
573
575
547
28
City attorney
1,585
1,757
1,547
210
City manager
3,200
4,780
4,255
525
Information technology
3,046
2,960
2,856
104
Finance and administrative services
7,583
7,903
7,294
609
Public safety:
Fire
20,434
20,703
19,787
916
Police
30,909
31,181
30,447
734
Public works
9,033
9,534
8,704
830
Community development
8,581
16,353
13,683
2,670
Culture and recreation:
Community services
13,163
13,304
12,280
1,024
Library services
4,936
5,270
4,704
566
Capital outlay
7,157
7,422
389
7,033
Total expenditures
110,510
122,079
106,688
15,391
Excess (deficiency) of revenues
over (under) expenditures
(9,920)
(20,274)
1,525
21,799
Other financing sources (uses):
Sale of capital assets
0
0
1,238
1,238
Transfers in
7,263
13,751
6,454
(7,297)
Transfers (out)
(8,046)
(10,371)
(4,618)
5,753
Total other financing sources (uses)
(783)
3,380
3,074
(306)
Net change in fund balances
$ (10,703)
(16,894)
4,599
21,493
Beginning fund balances
84,826
Ending fund balances
$ 89,425
See accompanying notes to financial statements.
32
CITY OF MOUNTAIN VIEW. CALIFORNIA
Shoreline Regional Park Community Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Total revenues
Expenditures:
Current:
General government:
City attorney
Finance and administrative services
Public safety:
Fire
Police
Public works
Community development
Culture and recreation:
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Beginning fund balances
Ending fund balances
See accompanying notes to financial statements.
26,935 26,940 31,959 5,019
10
Budgeted Amounts
0
148
13,005
13,361
13,352
Variance with
134
Original Final
Actual Amounts
Final Budget
Revenues:
26
25
1
Taxes
$ 26,053 26,053
30,972
4,919
Use of money and property
779 779
782
3
Intergovernmental revenue
0 0
20
20
Charges for services
60 60
125
65
Other
43 48
60
12
Total revenues
Expenditures:
Current:
General government:
City attorney
Finance and administrative services
Public safety:
Fire
Police
Public works
Community development
Culture and recreation:
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers in
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Beginning fund balances
Ending fund balances
See accompanying notes to financial statements.
26,935 26,940 31,959 5,019
10
148
0
148
13,005
13,361
13,352
9
134
145
87
58
26
26
25
1
739
760
636
124
387
387
254
133
2,702
2,896
2,598
298
28
37
14
23
17,031
17,760
16,966
794
9,904
9,180
14,993
5,813
0
0
1,046
1,046
(12,935)
(22,050)
(20,569)
1,481
(12,935)
(22,050)
(19,523)
2,527
$ (3,031)
(12,870)
(4,530)
8,340
33
53,365
$ 48,835
CITY OF MOUNTAIN VIEW. CALIFORNIA
Below Market Housing Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Revenues:
Use of money and property
Charges for services
Other
Total revenues
Expenditures:
Current:
Community development
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Beginning fund balances
Ending fund balances
See accompanying notes to financial statements.
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
$ 337
337
347
10
0
0
8,406
8,406
0
0
2
2
337
337
8,755
8,418
3,051
10,385
205
10,180
0
16
0
16
3,051
10,401
205
10,196
(2,714)
(10,064)
8,550
18,614
0
0
231
231
0
0
993
993
(54)
(54)
(54)
0
(54)
(54)
1,170
1,224
$ (2,768)
(10,118)
9,720
19,838
27,671
$ 37,391
34
CITY OF MOUNTAIN VIEW. CALIFORNIA
Park Land Dedication Capital Projects Fund
Statement of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
35
Budgeted Amounts
Variance with
Original
Final
Actual Amounts
Final Budget
Revenues:
Use of money and property
$ 254
254
451
197
Other
0
0
12,480
12,480
Total revenues
254
254
12,931
12,677
Expenditures:
Capital outlay
0
57
57
0
Total expenditures
0
57
57
0
Excess (deficiency) of revenues
over (under) expenditures
254
197
12,874
12,677
Other financing sources (uses):
Transfers in
0
273
273
Transfers (out)
(43)
(43)
(43)
0
Total other financing sources (uses)
(43)
(43)
230
273
Net change in fund balances
$ 211
154
13,104
12,950
Beginning fund balances
24,364
Ending fund balances
$ 37,468
35
CITY OF MOUNTAIN VIEW, CALIFORNIA
Proprietary Funds
Statement of Net Position
June 30, 2014 (Dollars in Thousands)
Assets:
Current assets:
Cash and investments (Note 3)
Restricted cash and investments (Note 3)
Receivables:
Accounts (net of allowances)
Interest
Deposits and prepaid costs
Total current assets
Noncurrent assets:
Advances to other funds (Note 5)
Land and construction in progress (Note 6)
Other capital assets, net of
accumulated depreciation (Note 6)
Total noncurrent assets
Total assets
Liabilities:
Current liabilities
Business -type Activities - Enterprise Funds Governmental
Activities -
Internal Service
$ 16,230
11,157
4,296
31,683
36,402
0
0
0
0
1,570
3,909
2,181
2,284
8,374
0
79
60
13
152
138
0
0
0
0
3
20,218
13,398
6,593
40,209
38,113
5,720
5,291
429
11,440
0
7,052
1,918
816
9,786
0
61,283
20,249
2,072
83,604
49
74,055
27,458
3,317
104,830
49
94,273
40,856
9,910
145,039
38,162
Accounts payable and accrued costs
1,387
25
981
2,393
231
Due in one year:
Accrued compensated absences (Note 7)
67
52
46
165
30
Accrued self - insurance costs (Note 10)
0
0
0
0
3,277
Revenue bonds, due within one year (Note 7)
335
0
0
335
0
Loans payable, due within one year (Note 7)
300
0
0
300
0
Refundable deposits
219
0
0
219
0
Total current liabilities
2,308
77
1,027
3,412
3,538
Noncurrent liabilities - due in more than one year:
Accrued compensated absences (Note 7)
407
314
284
1,005
181
Accrued self - insurance costs (Note 10)
0
0
0
0
6,203
Revenue bonds (Note 7)
6,455
0
0
6,455
0
Loans payable (Note 7)
3,450
0
0
3,450
0
Total liabilities
12,620
391
1,311
14,322
9,922
Net Position (Note 11):
Net investment in capital assets
57,795
22,167
2,888
82,850
49
Unrestricted
23,858
18,298
5,711
47,867
28,191
Total net position $
81,653
40,465
8,599
130,717
28,240
See accompanying notes to financial statements.
36
CITY OF MOUNTAIN VIEW, CALIFORNIA
Proprietary Funds
Statement of Revenues, Expenses and
Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
See accompanying notes to financial statements
37
Business -type Activities - Enterprise Funds
Governmental
Activities -
Internal Service
Water
Wastewater
Solid Waste
Total
Funds
Operating revenues:
Charges for sales and services
$ 27,639
14,849
11,634
54,122
9,149
Other
1,248
518
230
1,996
199
Total operating revenues
28,887
15,367
11,864
56,118
9,348
Operating expenses:
Salaries and related expenses
4,945
2,864
2,283
10,092
1,050
Self- funded insurance
0
0
0
0
2,842
Cost of sales and services
13,691
7,585
7,641
28,917
0
General and administrative
2,869
2,280
1,914
7,063
6,843
Depreciation
2,310
1,233
286
3,829
21
Total operating expenses
23,815
13,962
12,124
49,901
10,756
Operating income (loss)
5,072
1,405
(260)
6,217
(1,408)
Nonoperating revenues (expenses):
Interest income
213
130
51
394
460
Interest (expense)
(353)
0
0
(353)
Net nonoperating revenues (expenses)
(140)
130
51
41
460
Income (loss) before contributions and transfers
4,932
1,535
(209)
6,258
(948)
Contributions and transfers:
Capital contributions
58
129
0
187
0
Transfers in (Note 5)
83
81
7
171
5,164
Transfers (out) (Note 5)
(462)
(289)
(159)
(910)
(62)
Contributions and net transfers
(321)
(79)
(152)
(552)
5,102
Change in net position
4,611
1,456
(361)
5,706
4,154
Beginning net position
77,042
39,009
8,960
125,011
24,086
Ending net position
$ 81,653
40,465
8,599
130,717
28,240
See accompanying notes to financial statements
37
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Proprietary Funds
Statement of Cash Flows
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Cash flows from operating activities:
Receipts from customers
Payments to suppliers
Payments to or on behalf of employees
Claims paid
Other receipts
Net cash provided (used) by operating activities
Cash flows from non - capital financing activities:
Advances to other funds for construction in progress
Advances from other funds for construction in progress
Transfers in
Transfers (out)
Net cash provided (used) by noncapital
financing activities
Cash flows from capital and related financing activities:
Acquisition and construction of capital assets, net
Principal payment on capital debt
Principal payment on loans, net
Interest paid
Net cash flows provided (used) by capital and
related financing activities
Cash from investing activities:
Interest received
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation
Change in assets and liabilities:
Receivables, net
Accounts and other payables
Deposits and prepaid costs
Refundable deposits
Compensated absences
Net cash provided (used) by operating activities
Non cash transactions:
Retirement of capital assets, net
Contribution of capital assets
Total non -cash activities
See accompanying notes to financial statements
Business -type Activities - Enterprise Funds Governmental
Activities -
Internal Service
Water Wastewater Solid Waste Total Funds
$
28,019
15,146
11,973
55,138
9,348
(16,859)
(9,847)
(9,453)
(36,159)
(2,883)
(4,912)
(2,867)
(2,251)
(10,030)
(4,951)
0
0
0
0
(2,053)
1,278
518
230
2,026
0
7,526
2,950
499
10,975
(539)
(1,052)
(1,544)
0
(2,596)
0
0
0
83
83
0
83
81
7
171
5,164
(462)
(289)
(159)
(910)
(62)
(1,431)
(1,752)
(69)
(3,252)
5,102
(1,426)
(1,096)
(355)
(2,877)
0
(325)
0
0
(325)
0
(250)
0
0
(250)
0
(353)
0
0
(353)
0
(2,354)
(1,096)
(355)
(3,805)
0
195
128
57
380
458
3,936
230
132
4,298
5,021
12,294
10,927
4,164
27,385
32,951
$
16,230
11,157
4,296
31,683
37,972
$
5,072
1,405
(260)
6,217
(1,408)
2,310
1,233
286
3,829
21
380
297
339
1,016
0
(299)
18
102
(179)
851
(3)
30
0
0
30
0
33
(3)
32
62
0
$
7,526
2,950
499
10,975
(539)
$
22
0
58
129
$
492
447
W
CITY OF MOUNTAIN VIEW, CALIFORNIA
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2014 (Dollars in Thousands)
Assets:
Cash and investments (Note 3)
Restricted cash and investments (Note 3)
Total assets
Liabilities:
Accounts payable
Accrued payroll
Collections payable
Unearned revenue
Total liabilities
Revitalization
Successor Agency
Private - purpose Agency
Trust Fund Funds
$ 8 30,088
0 238
Net position:
Held in trust for private purpose $
See accompanying notes to financial statements.
40
8 30,326
8 0
0 1,803
0 278
0 28,245
8 30,326
I
CITY OF MOUNTAIN VIEW, CALIFORNIA
Private - Purpose Trust Fund
Statement of Changes in Fiduciary Net Position
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Additions:
Taxes
Recognized land to market value
Loans and other long term debts payable to City
Total additions
Deductions:
Community development
Depreciation expense (Note 14)
Interest expense
Revitalization
Successor Agency
Private - purpose
Trust Fund
$ 284
6,250
5,464
11,998
187
803
427
Total deductions 1,417
Change in net position before special item 10,581
Special item:
Capital assets contributed to the City (Note 14) (16,679)
Land market value contributed to City (6,250)
Write -off land held for resale book value (2,637)
Change in net position (14,985)
Beginning net position 14,985
Ending net position $ 0
See accompanying notes to financial statements.
41
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CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Mountain View, California (City) was incorporated in 1902 and is a charter city,
having had its first charter granted by the State of California in 1952. The City operates under
the Council- Manager form of government and provides the following services: public safety
(police, fire, and paramedic), public works and utilities, community development, community
and leisure services and administration and support services.
A. Reporting Entity
The accompanying basic financial statements present the financial activity of the City, which
is the primary government presented, along with the financial activities of its component
units, which are entities for which the City is financially accountable. Although they are
separate legal entities, blended component units are in substance part of the City's operations
and are reported as an integral part of the City's financial statements. The City's component
units, which are described below, are all blended.
The Mountain View Shoreline Regional Park Community (Shoreline Community) - is a
separate government entity created for the purpose of developing approximately 1,550 acres
of bayfront lands. The Shoreline Community is controlled by the City and has the same
governing body as the City, which also performs all accounting and administrative functions
for the Shoreline Community. Its financial activities have been aggregated and merged
(termed "blended ") with those of the City in the accompanying financial statements in the
Shoreline Regional Community Park Special Revenue Fund and the Debt Service Funds.
Separate financial statements for the Shoreline Community are also included in the City's
Comprehensive Annual Financial Report.
The City of Mountain View Capital Improvement Financing Authority (Financing
Authority) - is a separate government entity whose purpose is to assist with the financing or
refinancing of certain public capital improvements within the City. The Financing Authority
is controlled by the City and has the same governing body as the City, which also performs
all accounting and administrative functions for the Financing Authority. Separate financial
statements for the Financing Authority are not required and therefore, not issued.
43
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The Successor Agency to the Mountain View Revitalization Authority (Successor
Agency) - Pursuant to ABx126 (The "Dissolution Act "), the Mountain View Revitalization
Authority (Authority) was dissolved and the City Council adopted a resolution electing to
serve as the Successor Agency. The Successor Agency is a separate legal entity from the
City and is not a component unit of the City. The City Council does not control the
Successor Agency. ABx126 establishes an oversight board to the Successor Agency to
review and approve the Successor Agency actions. Upon dissolution and under the control
of the oversight board, the Authority's non - housing funds and assets were turned over to the
Successor Agency and the Successor Agency is charged with the responsibility of retiring all
of the remaining obligations of the former Authority and disposing of the former Authority's
remaining real property assets and winding down the affairs of the Successor Agency. The
Successor Agency's financial transactions are accounted for in a private - purpose trust fund, a
fiduciary fund type.
B. Basis of Presentation
The City's basic financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America (U.S.A.). The Government Accounting
Standards Board (GASB) is the acknowledged standard setting body for establishing
accounting and financial reporting standards followed by governmental entities in the
U.S.A.
These standards require that the financial statements described below be presented.
Government -wide Statements: The Statement of Net Position and the Statement of
Activities display information about the primary government (the City and its component
units). These statements include the financial activities of the overall City government,
except for fiduciary activities. Eliminations have been made to minimize the double
counting of internal activities. These statements distinguish between the governmental and
business -type activities of the City. Governmental activities generally are financed through
taxes, intergovernmental revenues and other nonexchange transactions. Business -type
activities are financed in whole or in part by fees charged to external parties.
The Statement of Activities presents a comparison between direct expenses and program
revenues for each segment of the business -type activities of the City and for each function
of the City's governmental activities. Direct expenses are those that are specifically
associated with a program or function and, therefore, are clearly identifiable to a particular
function. Program revenues include (a) charges paid by the recipients of goods or services
offered by the programs, (b) grants and contributions that are restricted to meeting the
operational or capital requirements of a particular program and (c) development fees and
permits, which are capital grants under California law. Revenues that are not classified as
program revenues, including all taxes, are presented as general revenues.
44
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Fund Financial Statements: The fund financial statements provide information about the
City's funds, including fiduciary funds and blended component units. Separate statements
for each fund category governmental, proprietary, and fiduciary —are presented. The
emphasis of fund financial statements is on major individual governmental and enterprise
funds, each of which is displayed in a separate column. All remaining governmental and
enterprise funds are aggregated and reported as non -major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are
those in which each party receives and gives up essentially equal values. Nonoperating
revenues, such as contributions and investment earnings, result from nonexchange
transactions or ancillary activities.
C. Major Funds
Major funds are defined as funds that have either assets combined with deferred outflow of
resources, liabilities combined with deferred inflow of resources, revenues or
expenditures /expenses equal to ten percent of their fund -type total and five percent of the
grand total of governmental and enterprise funds. Major governmental and business -type
funds are identified and presented separately in the fund financial statements. All other
funds, called non -major funds, are combined and reported in a single column, regardless of
their fund -type. The General Fund is always a major fund, and the City may select other
funds it believes should be presented as major funds.
The City reports the following major governmental funds in the accompanying financial
statements:
General Fund – This is the City's primary operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
Shoreline Regional Park Community Fund (Special Revenue) – This fund receives tax
increment revenues on properties within the Shoreline Community. The fund accounts for
the revenues and expenditures of the Shoreline Community.
The Below Market Housing Fund – This fund accounts for fees paid by developers to
provide for increasing and improving the supply of low and moderate income housing.
General Capital Projects Fund – This fund accounts for all general capital improvement
projects not funded from proprietary funds.
The Park Land Dedication Capital Projects Fund – This fund accounts for revenues
derived from fees on residential subdivisions used for park and recreation projects.
45
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reports all its enterprise funds as major funds in the accompanying financial
statements:
Water Fund — This fund accounts for the revenues and expenses related to the operation,
maintenance and capital outlay required to supply, distribute and meter water.
Wastewater Fund — This fund accounts for the revenues and expenses related to the
operation, maintenance and capital outlays required to provide wastewater services. The
City has an agreement with the City of Palo Alto to purchase treatment capacity at the Palo
Alto Regional Water Quality Control Plant.
Solid Waste Fund — This fund accounts for the revenues and expenses related to disposal
services, recycling operations, other solid waste operations and certain costs related to
maintenance of the closed landfill sites. Collection operations are provided by an outside
private contractor. The City has an agreement with the Cities of Palo Alto and Sunnyvale
for disposal transfer capacity at the Sunnyvale Materials and Recovery Transfer (SMaRT)
Station.
The City also reports the following fund types:
Internal Service funds — These funds account for equipment maintenance and replacement,
workers' compensation, unemployment self - insurance, liability self - insurance, retirees'
health and employee benefits plans, all of which are provided to other funds on a cost -
reimbursement basis.
Fiduciary funds — The Agency funds account for assets held by the City as an agent for
employees' payroll, Center for Performing Arts activities, union activities, benefits,
educational enhancement activities and unearned land lease rent activities. The Successor
Agency to the Mountain View Revitalization Authority Private- purpose Trust Fund is used
to account for the activities of the Mountain View Revitalization Authority Successor
Agency (Successor Agency). The financial activities of these funds are excluded from the
City -wide financial statement, but are presented in separate Fiduciary Fund financial
statements.
D. Basis of Accounting
The government -wide and proprietary financial statements are reported using the economic
resources measurement focus and the full accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded at the time liabilities are incurred,
regardless of when the related cash flows take place.
46
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Governmental funds are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Under this method, revenues are recognized
when measurable and available. The City considers all revenues except sales tax, reported
in the governmental funds to be available if the revenues are collected within sixty days
after fiscal year -end. Sales taxes use a seven -month availability period to include the
County's final distribution of sales tax revenue to be received in the subsequent fiscal year.
Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on general long -term debt, claims and judgments, landfill containment costs
and compensated absences, which are recognized as expenditures to the extent they have
matured or are expected to be paid in the coming fiscal year. General capital asset
acquisitions are reported as expenditures in governmental funds. Proceeds of general long-
term debt and acquisitions under capital leases are reported as other financing sources.
Non - exchange transactions, in which the City gives or receives value without directly
receiving or giving equal value in exchange, include property taxes, grants, entitlements
and donations. On the accrual basis, revenues from property taxes are recognized in the
fiscal year for which the taxes are levied. Revenues from grants, entitlements and
donations are recognized in the fiscal year in which all eligibility requirements have been
satisfied.
Those revenues susceptible to accrual are property taxes, sales taxes, certain
intergovernmental revenues, transient occupancy taxes, utility user taxes, earned grant
entitlements, special assessments due within the current fiscal year and interest revenue.
All other revenue items are considered to be measurable and available only when cash is
received.
Grant revenues are recognized in the fiscal year in which all eligibility requirements are
met. Under the terms of grant agreements, the City may fund certain programs with a
combination of cost - reimbursement grants, categorical block grants and general revenues.
Thus, both restricted and unrestricted net position may be available to finance program
expenditures. The City's policy is to first apply restricted grant resources to such
programs, followed by general revenues if necessary.
Certain indirect costs are included in program expenses reported for individual functions
and activities.
As a general rule the effect of interfund activity has been eliminated from the government -
wide financial statements. Exceptions to this general rule are charges between the
government's business -type activities and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported
for the various functions concerned.
47
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE I — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for
goods, services, or privileges provided, 2) operating grants and contributions and 3) capital
grants and contributions, including special assessments. Internally dedicated resources are
reported as general revenues rather than as program revenues. Likewise, general revenues
include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with a proprietary fund's principal ongoing operations.
The principal operating revenues of the City's enterprise funds and internal service funds
are charges to customers for sales and services. The City also recognizes as operating
revenue the portion of connection fees intended to recover the cost of connecting new
customers to the system. Operating expenses for enterprise funds and internal service
funds include the cost of sales and services, administrative expenses and depreciation on
capital assets. All revenues and expenses not meeting this definition are reported as
nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy
to use restricted resources first, then unrestricted resources as they are needed.
E. Inventory of Materials and Supplies
Inventories are valued at cost (first in, first out). Inventories of the General Fund consist of
expendable supplies held for consumption. The cost is recorded as expenditure at the time
individual inventory items are consumed. Inventories of the Shoreline Golf Links Special
Revenue Fund consist of merchandise held for resale to consumers. The cost is recorded as
an expenditure at the time individual inventory items are sold. Reported General and
Special Revenue Fund inventories are equally offset by nonspendable fund balance which
indicates that they do not constitute available spendable resources even though they are a
component of net current assets.
F. Property Taxes
Santa Clara County (County) assesses properties and it bills, collects and distributes property
taxes to the City. The County remits the entire amount levied and handles all delinquencies,
retaining interest and penalties. Secured and unsecured property taxes are levied on July 1 for
the fiscal year.
Secured property tax is due in two installments, on November 1 and February 1, and
becomes a lien on those dates. It becomes delinquent after December 10 and April 10,
respectively. Unsecured property tax is due on July 1, and becomes delinquent on November
14. Collection of delinquent accounts is the responsibility of the County, which retains all
penalties.
48
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The term "unsecured" refers to taxes on personal property other than real estate, land and
buildings. These taxes are secured by liens on the property being taxed. Property tax
revenues are recognized by the City in the fiscal year they are assessed, provided they
become available as defined above.
G. Compensated Absences
Compensated absences representing unmatured vacation, sick leave pay and related costs
are reported in the Statement of Net Position. All compensated absences and related costs
are accrued when incurred in the government -wide and proprietary fund financial
statements. A liability for these amounts is reported in the governmental funds only if they
have matured and are unpaid as a result of employee termination and retirements. The City
uses the vesting method for the calculation of compensated absences. All funds except the
Enterprise Funds, contribute to the Governmental activity accrued compensated absences.
K Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles (GAAP) requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
L Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes
report a separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of net position
or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense /expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet will sometimes
report a separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of net position
or fund balance that applies to a future period(s) and so will not be recognized as an inflow
of resources (revenue) until that time.
ME
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 2 — BUDGETS AND BUDGETARY ACCOUNTING
A. Budgets and Budgetary Accounting
The City adopts an annual budget on or before June 30 for the ensuing fiscal year for the
General Fund and all Special Revenue Funds except the Police Asset Forfeitures Fund, the
Deferred Assessments Fund and the Housing Successor Fund.
No annual budgets are adopted for the Debt Service Funds. Repayment of the debt is
authorized by the adoption of the indenture provisions for the life of the debt.
The Storm Drain Construction and Park Land Dedication Capital Projects Funds are
budgeted annually. All other Capital Projects Funds are budgeted on a project basis. Such
budgets are based on a project time frame, rather than a fiscal year operating time frame,
whereby unused appropriations continue until project completion.
Budget appropriations become effective each July 1. The City Council may amend the
budget during the fiscal year. The legal level of budgetary control has been established at
the fund and department level. Appropriations generally lapse at the end of the fiscal year
to the extent they have not been expended or encumbered.
All Governmental Fund Type annual budgets are presented on a basis consistent with the
basic financial statements prepared in accordance with generally accepted accounting
principles.
Budgeted revenue amounts represent the original budget modified by adjustments
authorized during the fiscal year. Budgeted expenditure amounts represent original
appropriations adjusted for supplemental appropriations during the fiscal year and
reappropriated amounts for encumbrances outstanding at the end of each prior fiscal year.
City Council must approve appropriation increases to departmental budgets; however,
management may transfer Council- approved budgeted amounts within fund and
departmental expenditure classifications. Judgments, settlements and accrual entries are
not subject to budgetary control and expenditures exceeding budget due to these items do
not constitute a violation of budget policy or control. Supplemental appropriations were
approved during the course of the fiscal year as needed.
50
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 2 — BUDGETS AND BUDGETARY ACCOUNTING (Continued)
B. Encumbrance Accounting
Under encumbrance accounting, purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation. Encumbrance accounting is employed as an extension of formal budgetary
integration. Encumbrances outstanding at fiscal year -end are automatically reappropriated
for inclusion in the following fiscal year's budget.
NOTE 3 — CASH & INVESTMENTS
The City pools cash from all sources and all funds, except Restricted Cash and Investments with
Fiscal Agents, so the pool of funds can be invested consistent with goals for safety and liquidity,
while maximizing yield. Cash is pooled so individual funds can make expenditures at any time.
A. Policies
California Law requires banks and savings and loan institutions to pledge government
securities with a market value of 110 percent of the City's cash on deposit, or first trust
deed mortgage notes with a market value of 150 percent of the deposit, as collateral for
these deposits. Under California Law this collateral is held in a separate investment pool
by another institution in the City's name and places the City ahead of general creditors of
the institution.
The City invests in individual investments and in investment pools. Individual investments
are evidenced by specific identifiable securities instruments, or by an electronic entry
registering the owner in the records of the institution issuing the security, called the book
entry system. In order to increase security, the City employs the Trust Department of a
bank as the custodian of certain City managed investments, regardless of their form.
The City's investments are carried at fair value, as required by generally accepted
accounting principles. The City adjusts the carrying value of its investments to reflect their
fair value at each fiscal year end and it includes the effects of these adjustments as income
or expense for that fiscal year.
Investment income is allocated among funds on the basis of average daily cash and
investment balances in each fund, unless there are specific legal or contractual
requirements to do otherwise.
Cash and investments with an original maturity of three months or less are used in
preparing Proprietary Fund statements of cash flows because these assets are highly liquid
and are expended to liquidate liabilities arising during the fiscal year.
51
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 - CASH AND INVESTMENTS (Continued)
B. Classification
Cash and investments are classified in the financial statements, based on whether or not
their use is restricted under the terms of debt instruments. Investments are carried at fair
value as of June 30, 2014. Cash and investments are as follows (dollars in thousands):
Statement of Net Position:
Cash and investments $ 345,941
Restricted cash and investments 12,296
Cash and investments of the City 358,237
Cash and investments in Fiduciary Funds (separate statement):
Cash and investments 30,096
Restricted cash and investments 238
Total cash and investments $ 388,571
Cash and investments as of June 30, 2014 consist of the following (dollars in thousands):
Cash on hand $ 12
Deposits with financial institutions 4,727
Investments 3 83, 832
Total cash and investments $ 388,571
C. Investments Authorized by the California Government Code and the City's Investment
Policy
The City's Investment Policy and the California Government Code authorize the investment
types in the following table, provided the credit ratings of the issuers are acceptable to the
City; and approved percentages and maximum maturities are not exceeded. The table also
identifies certain provisions of the California Government Code, or the City's Investment
Policy where the City's Investment Policy is more restrictive, that addresses interest rate risk,
credit risk and concentration of credit risk. This table does not address investments of debt
proceeds held by bond trustee that are governed by the provisions of debt agreements of the
City, rather than the general provisions of the California Government Code or the City's
Investment Policy.
52
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
INOTE 3 - CASH AND INVESTMENTS (Continued)
The City's Investment Policy and the California Government Code allow the City to invest
in the following:
53
Maximum
Maximum
Maximum
Percentage
Investment
Authorized Investment Type
Maturity
of Portfolio
in One Issuer
U.S. Treasury Obligations
5 years
(A)
No limit
U.S. Agency Securities
5 years
50%
25%
U.S. Agency Mortgage- backed securities
5 years
20%
25%
Callable Securities (Treasuries, Agencies, Corp. Notes)
5 years
10%
5%
Commercial paper
180 days
15%
5%
Banker's acceptances
180 days
20%
5%
Medium -term notes issued by
U.S. corporations
5 years
15%
5%
Mutual funds invested in
U.S. Government securities
N/A
10%
5%
Certificates of deposit:
FDIC insured time deposits
2 years
10%
5%
Collateralized time deposits
2 years
10%
5%
Negotiable time deposits
2 years
10%
5%
Municipal Bonds issued by the City or any of its
component units
(B)
(B)
(B)
Passbook accounts
N/A
N/A
N/A
Legal settlements
N/A
N/A
N/A
Local Agency Investment Fund (LAIF)
N/A
20%
N/A
(A) The policy requires a minimum of 25% of the total portfolio to be invested in U.S.
Treasury
Obligations.
(B) The policy allows only municipal bonds issued by the City
of Mountain View or
its component units at
limits and maturities as approved by the City Council.
53
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
INOTE 3 - CASH AND INVESTMENTS (Continued)
D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal
agents under the terms of certain debt issues. These funds are unexpended bond proceeds or
are pledged as reserves to be used if the City fails to meet its obligations under these debt
issues. The investment of debt proceeds held by bond trustee is governed by provisions of
the debt agreements, rather than the general provisions of the California Government Code
or the City's Investment Policy. These debt agreements do not address interest rate risk,
credit risk and concentration of credit risk. The table below identifies the investment types
that are authorized for investments held by bond trustee:
Maximum
Authorized Investment Type Maturity
U.S. Treasury Obligations
No limit
U.S. Agency Securities
No limit
Deposit Accounts, Federal Funds and
Banker's Acceptances
360 days
FDIC Insured Certificates of Deposit
No limit
Commercial Paper
270 days
Money Market Mutual Funds
No limit
State and Local Agency Bonds
No limit
Insurer approved Investment Contracts
No limit
Insurer approved other forms of Investments
including Repurchase Agreements
No limit
Local Agency Investment Fund (LAIF)
No limit
54
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 - CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater
the sensitivity of its fair value to changes in market interest rates. One of the ways the City
manages its exposure to interest rate risk is by purchasing a combination of shorter term
and longer term investments and by timing cash flows from maturities so a portion of the
portfolio is maturing or coming close to maturity evenly over time as necessary to provide
the cash flow and liquidity needed for operations. The City monitors the interest rate risk
inherent in its portfolio by measuring the modified duration (modified duration is a
measure of a fixed income's cash flows using present values, weighted for cash flows as a
percentage of the investments' full price) of its portfolio. The City monitors interest rate
risk inherent in investments held by the trustee by using specific identification, as shown in
the table below (dollars in thousands):
Modified
Duration
Investment Type Amount (in years)
Held by City
LAIF
$ 65,932
N/A
U.S. Treasury Obligations
139,560
2.33
U.S. Agency Securities
135,302
2.39
Medium -term Notes
22,425
3.64
Municipal Bonds - Yardis Assessment District
72
2.83
Shoreline Community 2011 Revenue Bonds
9,726
7.04
The modified duration of the City's portfolio as of June 30, 2014,
excluding Shoreline Community 2011 Bonds.
Held by Bond Trustee:
Cash in Bank
LAIF
U.S. Agency Securities:
Federal Home Loan Banks
Money Market Mutual Funds
Total investments
55
2.01
3
7,568
3,000
244
$ 383,832
Specific
Identification
Maturity Date
N/A
June 25, 2015
N/A
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 - CASH AND INVESTMENTS (Continued)
Through the City's Investments Policy, the City manages its exposure to fair value losses
arising from increasing interest rates by limiting the modified duration of its investment
portfolio to within 15.0 percent of the modified duration of a benchmark portfolio. As of
June 30, 2014, the allowed modified duration ranged from 1.76 to 2.38 years.
Investments in municipal bonds shown above represent the City's investment in its 2000
Yardis Court Special Assessment Debt and 2011 Shoreline Regional Parks Community
Revenue Bonds. The balance as of June 30, 2014 is stated at amortized cost, which
approximates fair value.
The City is a participant in the Local Agency Investment Fund (LAIF) that is regulated by
California Government Code Section 16429 under the oversight of the Treasurer of the
State of California. The City reports its investment in LAIF at the fair value amount
provided by LAIF, which is the same as the value of the pool share. The balance available
for withdrawal is based on the accounting records maintained by the State, which are
recorded on an amortized cost basis. Included in LAIF's investment portfolio are
collateralized mortgage obligations, mortgage- backed securities, other asset - backed
securities, loans to certain state funds, floating rate securities issued by federal agencies,
government- sponsored enterprises, United States Treasury Notes and Bills and
corporations. As of June 30, 2014, these investments have an average maturity of 232 days.
Mutual Money Market Funds investments are available for withdrawal on demand and as
of June 30, 2014 have an average maturity from 40 days.
F. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The City's Investment Policy is to
apply the prudent investor's standard in managing the overall portfolio. This standard
states that investments shall not be made for speculation but shall be made with judgment
and care which investors of prudence, discretion and intelligence exercise considering the
safety of principal as well as the income to be earned. The actual ratings as of June 30,
2014 for all U.S. Agency Securities and Money Market Mutual Funds are Aaa as provided
by Moody's Investor Service. The U.S. Treasury Obligations are exempt from credit rating
disclosure. The Municipal Bonds and Local Agency Investment Fund were not rated as of
June 30, 2014.
56
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 - CASH AND INVESTMENTS (Continued)
G. Concentration of Credit Risk
The City's Investment Policy regarding the amount that can be invested in any one issuer is
stipulated by the California Government Code. However, the City is required to disclose
investments that represent a concentration of 5.0 percent or more of investments in any one
issuer other than U. S. Treasury obligations, mutual funds and external investment pools.
As of June 30, 2014, those investments consisted of (dollars in thousands):
Reporting
Level Issuer
Entity -wide: Federal Home Loan Bank
Federal National Mortgage Association
Federal Home Loan Mortgage Corporation
NOTE 4 — LOANS RECEIVABLE
Investment
Type
Amount
Federal Agency Securities
$ 33,379
Federal Agency Securities
57,622
Federal Agency Securities
44,301
As of June 30, 2014, the City's loans receivable are as follows (dollars in thousands):
CDBG Rehabilitation
S 95
Mid - Peninsula Support Network
55
Ginzton Terrace
517
Latham Street Apartments
2,826
Project Match
132
Central Park Apartments
4,787
Stoney Pine Charities
124
HomeSafe
100
San Antonio Place LP
5,465
Tyrella Gardens Loan
390
Bill Wilson Center
133
Maitri Transitional Home
75
SR Fountains LP
981
San Veron Park
1,087
Franklin Street Family Apartments
12,547
El Camino West Affordable Studios
3,085
Rengstorff Affordable Housing
8,189
Deferred Assessments
4
Total
S 40,592
57
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — LOANS RECEIVABLE (Continued)
Housing Loans
The City engages in programs designed to encourage construction or improvement of housing for
persons with low- to moderate - income or other such projects. Under these programs, grants or
loans are provided under favorable terms to homeowners or developers who agree to spend these
funds in accordance with the City's terms. Since the City does not expect to collect these loans in
the near term, they have been offset by a restriction of fund balance in the fund financial
statements.
A. CDBG Rehabilitation
The City administers a housing rehabilitation loan program initially funded with Community
Development Block Grants (CDBG) funds. Under this program, individuals with incomes
below a stated level are eligible to receive low- interest loans for rehabilitation work on their
home. These loans are secured by deeds of trust, which may be subordinated with the prior
written consent of the City. The loan repayments may be amortized over the life of the loans,
deferred to maturity or a combination of both. There are three such loans outstanding
totaling $95,000 as of June 30, 2014.
B. Mid - Peninsula Support Network
On December 23, 1980, the City loaned $55,000 to Mid - Peninsula Support Network for the
acquisition and rehabilitation of a residential structure for the purpose of providing temporary
shelter for battered parents and their children. The loan was funded by CDBG funds. The
loan becomes payable upon demand by the City upon failure to comply with the terms of the
loan agreement. The loan carries a 12.0 percent annual interest rate and shall accrue
beginning 30 days following the date of demand. The loan is collateralized by a first deed of
trust.
C. Ginzton Terrace
On December 11, 1991, the City loaned $380,000 to the Mid - Peninsula Housing Coalition
(Coalition) for predevelopment and land acquisition costs related to the development of a
107 -unit affordable senior housing complex located at 375 Oaktree Drive. On May 1, 1993,
the City amended the loan agreement and loaned the Coalition an additional $215,000 for the
purpose of paying park and recreation fees required prior to occupancy of the land. On
February 12, 1996, excess funds not used were returned to the City in the amount of $78,000.
The loan balance of $517,000 was funded by CDBG funds. On May 21, 2013, the City
approved another modification to extend the loan term to May 31, 2038, reducing the annual
simple interest rate from 6.0 percent to 3.0 percent effective June 1, 2013 and restructured the
repayment to be based on 50.0 percent of the residual receipts. The loan balance and accrued
interest will become payable on May 31, 2038. The loan is collateralized by a first deed of
trust.
58
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — LOANS RECEIVABLE (Continued)
D. Latham Street Apartments
On August 30, 1995, the City and the former Authority loaned $2.1 million to the Mid -
Peninsula Housing Coalition (Coalition) for the acquisition and rehabilitation of a 75 -unit
apartment complex at 2230 Latham Street to provide affordable housing for very low -to
moderate - income families. The loan was funded by $992,000 of Authority Housing Set -
Aside Funds, $688,000 of CDBG funds and $387,000 of Home Investment Partnership Act
(HOME) grant funds. The various components of the loan are to be repaid over a 20 -24
year period at 3.0 percent annual simple interest. No payment was made in fiscal year
2014 against the loans. As of June 30, 2014, the outstanding loan balance is $1.8 million.
In fiscal year 2010, the City approved to loan up to $832,000 from CDBG funds for
window replacements. In fiscal year 2012, the City approved an additional loan up to
$212,000 from CDBG funds. The various components of the loans are to be repaid over a
20 -24 year period at 3.0 percent annual simple interest. During fiscal year 2014, $301,000
was drawn from the CDBG funds. As of June 30, 2014, $1.0 million was drawn from the
CDBG funds. As of June 30, 2014, the total outstanding balance of all loans related to the
Latham Street Apartments project is $2.8 million.
With the dissolution of the Authority effective January 31, 2012, the City became the
Housing Successor Agency. The balance of the loans were transferred to the Housing
Successor Special Revenue Fund of the City.
E. Project Match
On May 1, 1997, the City loaned $132,000 to Project Match for the acquisition of the house
located at 1675 South Wolfe Road, Sunnyvale, to provide affordable housing for low -
income seniors. The loan was funded by HOME grant funds. The loan is to be repaid over
a 30 -year period at 3.0 percent annual simple interest. The loan is collateralized by a
second deed of trust.
F. Central Park Apartments
On July 1, 1998, the City and the Authority loaned $2.2 million to the Coalition for the
acquisition and rehabilitation of a 149 -unit apartment complex known as Central Park
Apartments at 90 Sierra Vista Avenue to be used to provide housing for very low- to low -
income seniors. The entire project was initially funded by three loans: $388,000 from
Authority Housing Set -Aside funds to be repaid over nine years, commencing in fiscal year
1999 and bearing 3.0 percent annual interest; $1.2 million of CDBG funds to be repaid over
36 years commencing in fiscal year 2013 and bearing 3.0 percent annual interest; and
$612,000 from HOME grant funds to be repaid over 21 years commencing in fiscal year
2005 and bearing 3.0 percent annual interest. As of June 30, 2014, the Coalition had repaid
the entire $388,000 of the Authority's loan, and $612,000 of the HOME funds loan.
W
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — LOANS RECEIVABLE (Continued)
On August 19, 2004, the City loaned $498,000 to the Coalition for the rehabilitation of the
Central Park Apartments. The loan was funded by CDBG funds to be repaid over 16 years
commencing in fiscal year 2018 and bearing 1.153 percent annual interest. On April 17,
2006, the City approved a $748,000 loan to the Coalition for the construction of the New
Central Park Apartments. The loan was funded by CDBG funds with zero percent interest
and repayment is deferred until January 1, 2054 or upon the repayment of the $1.3 million
loans.
On March 27, 2007, the Authority loaned $851,000 of Authority Housing Set -Aside funds
to the Coalition for the construction of the New Central Park Apartments. The New
Central Park Apartments has added 104 units to the existing 149 units used to provide
housing for very low- to low- income seniors. The loan is to be repaid from available
residual receipts over 55 years commencing in fiscal year 2010 and bearing zero interest.
For the period ending January 31, 2012 prior to transfer, the Coalition had repaid $92,000
of the Authority's loan. With the dissolution of the Authority effective January 31, 2012,
the balance of the loan was transferred to the Housing Successor Special Revenue Fund.
After the transfer, the Coalition repaid another $101,000 of the Authority's loan. As of June
30, 2014, the amount of the loan outstanding is $658,000.
A loan of $1.3 million to be funded by HOME grant funds was approved on June 1, 2007.
The loan bears zero percent interest and repayment is deferred until the later of January 1,
2041 or upon repayment of the Authority Housing Set -Aside loan.
On July 24, 2007, the City approved a $405,000 loan to the Coalition for the development of the
New Central Park Apartments. The loan was funded by CDBG funds with zero percent interest
and repayment is deferred until July 1, 2063. As of June 30, 2014, $367,000 of the loan had been
funded.
As of June 30, 2014, the total outstanding balance of all loans related to Central Park
apartments is $4.8 million.
G. Stoney Pine Charities
On August 16, 2000, the City loaned $124,000 to the Stoney Pine Charities Housing
Corporation for the construction of a 23 -unit apartment complex at 212 North Mathilda
Avenue and 271 -283 West California Avenue, Sunnyvale, to provide affordable housing
for very low- income persons with developmental disabilities. The loan was funded by
$9,000 of CDBG funds and $115,000 of HOME grant funds. The loans bear simple
interest at 3.0 percent, but repayment of interest and principal is deferred for 40 years. The
loans and accumulated interest remain deferred unless during the term of the loan, or after
40 years, the apartments no longer meet the affordability test for very low- income persons
with developmental disabilities, or if the property is sold or transferred. The loan is
collateralized by a second deed of trust.
o
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — LOANS RECEIVABLE (Continued)
H. HomeSafe
On February 21, 2001, the City loaned $100,000 to the HomeSafe Santa Clara L.P. for the
construction of a 25 -unit apartment complex at 611 El Camino Real, Santa Clara, to
provide affordable housing for women and children who are victims of domestic violence.
The loan was funded by $100,000 of HOME grant funds. The loan bears simple interest
at 3.0 percent, but repayment of interest and principal is deferred for 55 years unless during
the term of the loan, the apartments no longer meet the affordability test for low- and very
low- income victims of domestic violence, or if the property is sold or transferred. The loan
is collateralized by a first deed of trust.
L San Antonio Place LP (Charities Housing Development Corporation)
On April 25, 2002, the City approved an agreement to loan up to $5.3 million to Charities
Housing Development Corporation (Corporation) for development of an efficiency studios
housing project to provide affordable housing for low- and very -low income persons. On
July 1, 2004, the Corporation assigned to the San Antonio Place LP all of the rights and
obligations under the agreements. The loan amount was amended to loan up to $5.5
million on December 1, 2006, which would be funded by $2.5 million of CDBG funds,
$2.2 million of HOME grant funds and $809,000 of Authority Housing set aside funds.
The loan is provided at zero percent interest with repayment deferred for 55 years unless
the San Antonio Place LP no longer meets the terms and conditions of the agreement. The
loan was transferred to the Housing Successor Special Revenue Fund with the dissolution
of the Authority in fiscal year 2012. As of the June 30, 2014, the amount of the loan
outstanding is $5.5 million.
J. Tyrella Gardens Loan
On May 20, 2003, the City approved to loan up to $390,000 to Mid - Peninsula Tyrella
Associates for the development and renovation of an affordable apartment complex to low
and moderate income families to be located at 449 Tyrella Avenue. The loan was funded
by CDBG funds with three percent interest and a term of 55 years. As of June 30, 2014,
$390,000 of this loan had been funded.
K Bill Wilson Center
On December 5, 2008, the City loaned $133,000 to The Bill Wilson Center, a nonprofit
corporation, for the acquisition and operation of a youth and counseling services shelter.
The loan was funded by CDBG funds. The loan is to be repaid over a 30 -year period at 3.0
percent simple interest. As of June 30, 2014, the amount of loan outstanding is $133,000.
61
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — LOANS RECEIVABLE (Continued)
L. Maitri Transitional Home
On March 5, 2009, the City loaned $75,000 to Maitri, a nonprofit corporation, for the
acquisition, maintenance and operation of a four -unit, multi - family home to temporarily
house victims of domestic violence. The loan was funded by CDBG funds. The loan is to
be repaid over a 15 -year period at 3.0 percent simple interest and is collateralized by a
second deed of trust. As of June 30, 2014, the amount of loan outstanding is $75,000.
M. SR Fountains LP
On December 1, 2009, the City approved to loan up to $255,000, to SR Fountains Limited
Partnership for the rehabilitation of 124 existing units at The Fountains Apartments
property located at 2005 San Ramon Avenue. The loan was funded by HOME grant funds
with zero percent interest and repayment is deferred until December 1, 2019. In 2010 and
2012, the City approved an additional $466,000 and $305,000, respectively, loan to SR
Fountains Limited Partnership. As of June 30, 2014, the total outstanding loan amount is
$981,000.
N. San Veron Park
On Dec 1, 2009, the City amended an agreement with San Veron Corporation to loan up to
$898,000 to renovate one hundred twenty -four affordable Town home units for very low -
and low- income households. The loan was funded by HOME grant funds. The construction
did not occur until fiscal year 2013. On July 1, 2013, the City approved and authorized the
provision of increasing the loan amount to $1.1 million, and to be drawn from the HOME
grant funds. As of June 30, 2014 $1.1 million of the loan had been funded.
O. Franklin Street Family Apartments
On April 18, 2011, the City approved an agreement to loan up to $1.3 million to ROEM
Development Corporation to acquire a long -term ground lease of property known as 135
Franklin Street. The loan was funded by CDBG funds at 4.0 percent interest and a term of
55 years. As of June 30, 2014, the amount of the loan outstanding was $1.3 million. On
November 1, 2011 the full loan was assigned to Franklin Street Family Apartments. The
loan was funded with below market rate funds at 4.0 percent interest and a term of 55
years.
On April 18, 2011, the City and Authority approved an agreement to loan up to $10.6
million to ROEM Development Corporation for the development of an affordable family
rental housing development to be located at the property mentioned above. On November
1, 2011 the full loan was assigned to Franklin Street Family Apartments. The loan was
funded by Housing Set -Aside funds with 4.0 percent interest and a term of 55 years. As of
June 30, 2014, $10.6 million of the loan had been funded.
62
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — LOANS RECEIVABLE (Continued)
On April 18, 2011, the City approved an agreement to loan up to $646,000 from the Below
Market Housing Funds to ROEM Development Corporation for the same project
mentioned above. $573,000 of this funding has been spent on predevelopment costs and
$73,000 was for construction related expenses. The loan was funded with four percent
interest and a term of 55 years.
With the dissolution of the Authority in fiscal year 2012, the balance of the loan was transferred
to the Housing Successor Special Revenue Fund in fiscal year 2012.
P. El Camino West Affordable Studios
On Jan 22, 2013, the City approved an agreement to loan up to $3.5 million to First
Community Housing to acquire 0.48 acre of property located at 1581 -1585 El Camino Real
West. The loan was funded by HOME grant funds and Below Market Housing Funds for
the amounts of $920,000 and $2.5 million respectively. The term of the loan is three
percent interest for 55 years. The balance of loans as of June 30, 2014 is $3.1 million.
Q. Rengstorff Affordable Housing
On June 3, 2013, the City approved an agreement to loan up to $9.0 million to ROEM
Development Corporation for the development of an affordable family rental housing
development to be located at 819 North Rengstorf£ The loan was funded by Below Market
Housing Funds with three percent interest and a term of 55 years. As of June 30, 2014, $8.2
million of the loan had been funded.
R. Deferred Assessments
Deferred assessments are loans for special assessment improvements made to property
owners who qualify under the City's deferred assessment program. As of June 30, 2014,
$4,000 is owed to the City under this program.
NOTE 5 — INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Council approval, resources may be transferred from one City fund to another. The
purpose of the majority of transfers is to allocate resources from the fund that receives
them to the fund where they will be spent without a requirement for repayment. Less often,
a transfer may be made to open or close a fund.
63
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 5 — INTERFUND TRANSACTIONS (Continued)
Transfers between funds during the fiscal year ended June 30, 2014 are as follows (dollars
in thousands):
Fund Receiving Transfers Fund Making Transfers
General Fund Shoreline Regional Park Community
General Capital Projects
Non -Major Governmental
Water
Shoreline Regional
Park Community
Below Market Housing
General Capital Projects
Non -Major Governmental
Transferred
Amount
$ 4,774 A
64 B
1,396 C
220 C
1,046 B
993 D
General Capital Projects General Fund 290 C
Shoreline Regional Park Community 8,842 C
Park Land Dedication 43 C
Non -Major Governmental 6,951 C
Internal Service Fund 53 C
Park Land Dedication
Non -Major Governmental
Water
Wastewater
Solid Waste
General Capital Projects
General Fund
Shoreline Regional Park Community
General Capital Projects
Non -Major Governmental
General Capital Projects
General Capital Projects
General Capital Projects
Internal Service General Fund
Shoreline Regional Park Community
General Capital Projects
Below Market Housing In Lieu
Non -Major Governmental
Water
Wastewater
Solidwaste
Internal Service
Total Interfund Transfers
The reasons for these transfers are as follows:
A To fund debt service payments.
B To refund remaining balances on completed capital improvement projects
special assessment districts, and interest back to original funding source.
C Recurring transfers for capital, operating costs or retirees' health plan.
D To move fund balance to fund below market housing activities.
64
273 B
234 A/C
6,826 A
1,008 B
1,015 B
83 B
81 B
7 B
4,094 C
127 C
3 C
54 C
187 C
242 C
289 C
159 C
9 C
$ 39,363
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 5 — INTERFUND TRANSACTIONS (Continued)
B. Long -Term Interfund Advances
The Funds below had made advances, which were not expected to be repaid within the next
fiscal year. These long -term interfund advances were used for capital improvement project
funding and are expected to be repaid out of future revenues. The balances outstanding as
of June 30, 2014 are as follows (dollars in thousands):
Amount of
Fund Making Advance Fund Receiving Advance Advance
General Fund
Enterprise Funds:
Water
Wastewater
Solid Waste
Shoreline Regional Park Community
Special Revenue Fund
Capital Projects Fund:
General Capital Projects
General Capital Projects
General Capital Projects
$ 2,938
5,720
5,291
429
$ 14,378
Shoreline Regional Park Community advances of $2.9 million from the General Fund
will be repaid at 10.0 percent in two remaining annual installments. During fiscal year
2014 a payment of $1.5 million was made.
General Capital Projects advances totaling $11.4 million are part of the City's capital
projects budgeting and funding process, whereby resources from Enterprise Funds are
advanced to the General Capital Projects Fund where the project will be completed and the
costs incurred. These advances are eliminated as funds are expended on Enterprise Fund
proj ects.
G Internal Balances
Internal balances are presented only in the government -wide financial statements. They
represent the net interfund receivables and payables remaining after the elimination of all
such balances within governmental and business -type activities.
65
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 — CAPITAL ASSETS
All capital assets, including intangible assets, are valued at historical cost or estimated historical
cost if actual historical cost is not available. Contributed capital assets are valued at their
estimated fair market value on the date contributed. The City defines capital assets as assets with
an initial individual cost of more than $3,000 and an estimated useful life in excess of two years.
Depreciation is provided using the straight -line method, which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each fiscal year
until the asset is fully depreciated. The City has assigned the useful lives listed below to capital
assets.
Buildings
25 to 50 years
Improvements other than buildings
5 to 50 years
Intangible assets
Various
Machinery and equipment
3 to 20 years
Traffic signals
20 years
Streetlights
50 years
Bridges and culverts
60 years
Sidewalks, curbs and gutters
40 years
Streets and roads
40 years
Major outlays for capital assets and improvements are capitalized as projects are constructed. For
Enterprise Funds, interest incurred during the construction phase is reflected in the capitalized
value of the asset constructed, net of interest earned on the invested proceeds over the same period.
..
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 - CAPITAL ASSETS (Continued)
A. Capital Asset Activity
Capital assets activity for the fiscal year ended June 30, 2014 is as follows (dollars in
thousands):
Land held
and Capital Assets
Balance at Received from Balance at
June 30, 2013 Additions Retirements Transfers Successor Agency June 30, 2014
Governmental activities
Capital assets not being depreciated:
Land
$ 90,475
10
(38)
0
6,250
96,697
Construction in progress
55,342
13,696
0
(33,754)
0
35,284
Total capital assets not being depreciated
145,817
13,706
(38)
(33,754)
6,250
131,981
Capital assets being depreciated:
Buildings
133,786
179
(275)
8,389
22,464
164,543
Improvements other than buildings
150,312
74
0
12,198
873
163,457
Machinery and equipment
32,561
1,504
(1,039)
0
0
33,026
Traffic signals
9,387
736
0
447
0
10,570
Streetlights
7,166
0
0
0
781
7,947
Bridges and culverts
9,715
0
0
8,500
0
18,215
Sidewalks, curbs and gutters
105,852
48
(9)
1,548
3,881
111,320
Streets and roads
252,295
8
(128)
2,672
3,143
257,990
Total capital assets being depreciated
701,074
2,549
(1,451)
33,754
31,142
767,068
Less accumulated depreciation for:
Buildings
(59,336)
(603)
46
0
(9,847)
(69,740)
Improvements other than buildings
(96,881)
(7,933)
0
0
(330)
(105,144)
Machinery and equipment
(23,329)
(1,610)
1,032
0
0
(23,907)
Traffic signals
(3,659)
(481)
0
0
0
(4,140)
Streetlights
(6,116)
(143)
0
0
(434)
(6,693)
Bridges and culverts
(3,800)
(233)
0
0
0
(4,033)
Sidewalks, curbs and gutters
(52,843)
(2,665)
9
0
(2,155)
(57,654)
Streets and roads
(121,913)
(6,338)
16
0
(1,697)
(129,932)
Total accumulated depreciation
(367,877)
(20,006)
1,103
0
(14,463)
(401,243)
Net capital assets being depreciated
333,197
(17,457)
(348)
33,754
16,679
365,825
Governmental activities capital assets, net
$ 479,014
(3,751)
(386)
0
22,929
497,806
M
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 — CAPITAL ASSETS (Continued)
Less accumulated depreciation for
Buildings
Balance at
(25)
172
0
Balance at
Improvements other than buildings
June 30, 2013
Additions
Retirements
Transfers
June 30, 2014
Business -type activities
(3,807)
(233)
45
0
(3,995)
Capital assets, not being depreciated:
(56,682)
(3,829)
596
0
(59,915)
Land
$ 220
0
0
0
220
Construction in progress
12,668
2,875
0
(5,977)
9,566
Total capital assets not being depreciated
12,888
2,875
0
(5,977)
9,786
Capital assets, being depreciated:
Buildings
8,927
0
(179)
0
8,748
Improvements other than buildings
123,958
211
(416)
5,977
129,730
Machinery and equipment
5,064
0
(23)
0
5,041
Total capital assets being depreciated
137,949
211
(618)
5,977
143,519
Less accumulated depreciation for
Buildings
(8,630)
(25)
172
0
(8,483)
Improvements other than buildings
(44,245)
(3,571)
379
0
(47,437)
Machinery and equipment
(3,807)
(233)
45
0
(3,995)
Total accumulated depreciation
(56,682)
(3,829)
596
0
(59,915)
Net capital assets being depreciated
81,267
(3,618)
(22)
5,977
83,604
Business -type activities capital assets, net
$ 94,155
(743)
(22)
0
93,390
68
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 — CAPITAL ASSETS (Continued)
B. Depreciation Allocation
Depreciation expense was charged to functions and programs based on their usage of the
related assets. The amounts allocated to each function for the fiscal year ended June 30, 2014
are as follows (dollars in thousands):
Governmental Activities:
General government
$
2,176
Public safety
576
Public works
8,019
Community development
575
Culture and recreation
8,660
Total
$
20,006
Business -type Activities:
Water
$
2,310
Wastewater
1,233
Solid Waste
286
Total
$
3,829
C. Construction Commitments
The City has active construction projects that include buildings and building
improvements; improvements other than buildings; streets, sidewalks and traffic signal
improvements; bridges and culverts; water system improvements; and wastewater system
improvements. Commitments with contractors for construction, as of June 30, 2014 are as
follows (dollars in thousands):
Improvements other than buildings
Streets, sidewalks, streetlights and traffic
signal improvements
Total
Spent Remaining
to Date Commitment
$ 3,430 14,930
561 905
$ 3,991 15,835
All commitments are funded from general fund, special revenue fund and enterprise fund
revenues transferred to the various projects in the capital projects fund.
.e
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 — NONCURRENT LIABILITIES
The City generally incurs long -term debt to finance projects or purchase assets which will have
useful lives equal to or greater than the related debt. The City's debt issues and transactions are
summarized below and discussed in detail thereafter.
A. Composition and Changes
Noncurrent liabilities activity for the fiscal year ended June 30, 2014 is as follows (dollars
in thousands):
Governmental Activities Debt.
Tax Allocation Bonds:
Shoreline Regional Park Community
2001 Tax Allocation Refunding Bonds
3.5% to 5.25 %, due 2016
2004 Tax Allocation Refunding Bonds
2.0% to 5.0 %, due 2018
2011 Revenue Refunding Bonds
2.0% to 5.75 %, due 2040
Total Tax Allocation Bonds
Certificates of Participation:
City
2001 Refunding
3.5% to 4.75 %, due 2015
2008 Childcare Center (COP)
1 %, due 2016
Total Certificates of Participation
Shoreline Regional Park Community
2014 Bank Loan
1.65 %, due 2018
Total Bank Loans
Original Balance Balance Due Within
Issue June 30, June 30, One
Amount 2013 Additions Retirements 2014 Year
$ 17,520
5,830
19,520
8,890
39,030
37,580
76,070
52,300
0 (5,830) 0
0
0 (8,890) 0
0
0 (1,495) 36,085
1,535
2,800
0 (16,215) 36,085
1,535
10,720
2,825
0
(900)
1,925
940
2,800
1,913
0
(183)
1,730
185
13,520
4,738
0
(1,083)
3,655
1,125
12,135
0
12,135
0
12,135
2,842
12,135
0
12,135
0
12,135
2,842
(Continued)
70
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 — NONCURRENT LIABILITIES (Continued)
Original Balance Balance Due Within
Issue June 30, June 30, One
Amount 2013 Additions Retirements 2014 Year
Special Assessment Debt
with City Commitment:
1996 Centre - Church -El Ranchito -Bay
4.10 % - 6.375 %, due 2022
2000 Yardis Court
7.0 %, due 2020
Total Special Assessment Debt with
City Commitment
Compensated Absences
Landfill Containment
Claims liabilities (Note 10)
Total Governmental Activities Debt
Business -Type Activities:
Water Revenue Bonds
2004 Series A
3.0 % -4.5 %, due 2029
City of Palo Alto Loan
2007, 0 %, due 2029
Less unamortized discount
Compensated Absences
Total Business -type Activities Debt
561
195
0
(25)
170
25
195
79
0
(8)
71
8
(1,000)
(800)
0
50
756
274
0
(33)
241
33
1,170
165
$ 14,700
0
8,512
19
(152)
8,379
1,150
0
34,582
0
(2,470)
32,112
2,470
0
8,691
2,089
(1,300)
9,480
3,277
$ 102,481
109,097
14,243
(21,253)
102,087
12,432
$ 9,700
7,115
0
(325)
6,790
335
6,000
4,800
0
(300)
4,500
300
(1,000)
(800)
0
50
(750)
0
0
1,108
186
(124)
1,170
165
$ 14,700
12,223
186
(699)
11,710
800
Compensated absences are liquidated by the fund that has recorded the liability. The long-
term portion of governmental activities compensated absences is liquidated by
contributions from various funds, but primarily the General Fund.
71
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 — NONCURRENT LIABILITIES (Continued)
B. Descriptions of Noncurrent Liabilities
Tax Allocation Bonds:
2001 Tax Allocation Refunding Bonds Shoreline Regional Park Community - On July
24, 2001, the Shoreline Community issued $17.5 million of Tax Allocation Refunding
Bonds, 2001 Series A, to refund and retire a portion of the Shoreline Community's 1992
Tax Allocation Bonds. Principal payments were payable annually on August 1 and interest
payments semi - annually on August 1 and February 1 from property tax revenues generated
within the Shoreline Community. On April 22, 2014, the 2001 Tax Allocation Refunding
Bonds were fully refunded in the amount of $4.5 million by the 2014 Shoreline Regional
Park Community Bank Loan.
2004 Tax Allocation Refunding Bonds Shoreline Regional Park Community - On
December 16, 2003, the Shoreline Community issued $19.5 million of Tax Allocation
Refunding Bonds, 2004 Series A, to refund the Shoreline Community's 1993 Tax
Allocation Bonds. The Bonds were issued at a premium of $619,000, which was being
amortized over the remaining life of the debt issue. The refunding resulted in a $2.4
million savings in total debt service. The net present value of the savings resulted in an
economic gain of $1.9 million. Principal payments were payable annually on August 1 and
interest payments semi - annually on August 1 and February 1 from property tax revenues
generated within the Shoreline Community. On April 22, 2014, the 2004 Tax Allocation
Refunding Bonds were fully refunded in the amount of $7.6 milion by the 2014 Shoreline
Regional Park Community Bank Loan.
2011 Revenue Bonds Shoreline Regional Park Community - On July 19, 2011, the
Shoreline Community issued $39.0 million of 2011 Revenue Bonds, Series A. Proceeds
from the bonds was used to call the outstanding Shoreline Community's Tax Allocation
Bonds, 1996 Series A and provide funds to acquire and construct certain capital
improvements of benefit to the Shoreline Community. The economic gain generated from
the transaction is in the form of interest rate savings earned over the life of the bonds, and
the net present value benefit amounts to $887,000. The 2011 Bonds are special obligations
of the Shoreline Community and are secured by a portion of all taxes levied upon all
taxable property within the Shoreline Community. Principal payments are payable annually
on August 1 and interest payments semi - annually on August 1 and February 1 from
property tax revenues generated within the Shoreline Community.
72
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 — NONCURRENT LIABILITIES (Continued)
Certificates of Participation (COPs):
2001 Refunding Certificates of Participation - On July 24, 2001, the City issued $10.7
million of 2001 Refunding Certificates of Participation to refund and retire a portion of the
City's obligations under a 1992 Lease Agreement. The 2001 Refunding COPs are
collateralized by revenue received from the City by the Trustee under the City
Hall /Community Theater complex lease agreement. Principal payments are payable
annually on August 1 and interest payments semi - annually on August 1 and February 1
from general revenues of the City.
2008 Certificates of Participation - On January 11, 2008, the Financing Authority issued
$2.8 million of 2008 Certificates of participation for the construction of a Child -Care
Center Project. The amount due under the Agreement is payable annually on January 11.
2014 Shoreline Regional Park Community Loan Payable - On April 21, 2014, the
Shoreline Community obtained a bank loan in the amount of $12.1 million. Proceeds from
the loans were used to retire the outstanding Shoreline Community's 2001 Tax Allocation
Bonds, and 2004 Tax Allocation Bonds. As a result, total debt service payments were
reduced by $707,000 arriving to an economic gain (difference between the present values
of the debt service payments on the old and new debt) of $682,000. Principal payments are
payable annually on August 1 and interest payment semi - annually on August 1 and
February 1 from property tax revenues generated within the Shoreline Community. The
final principal payment is August 1, 2018.
Special Assessment Debt with City Commitment - Special assessment districts exist in
the City to provide improvements to properties located within those districts. Properties
are assessed for the cost of improvements; these assessments are payable over the term of
the debt issued to finance the improvements. The total amount of the assessment is
recorded as a receivable and a deferred revenue at the time the related debt is issued, and is
reduced as assessments are collected.
The City is committed to be the purchaser of last resort or to advance available City funds
to repay this debt in the event of default by any property owners of these districts. The
City accounts for resources available to pay special assessment debt in its Special
Assessment Debt Service Fund.
These Special Assessment Bonds were issued at various times to provide financing for
electrical and community service facilities, street and utility improvements, water and
sewer connections, storm drain improvements and other related projects. Principal
payments are payable annually and interest payments semiannually.
73
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 — NONCURRENT LIABILITIES (Continued)
2004 Water Revenue Bonds - On September 29, 2004, the City issued $9.7 million of
2004 Water Revenue Bonds, 2004 Series A, to fund the construction of Graham Reservoir.
Water fund revenues are pledged to pay the debt service on the bonds. Principal payments
are payable annually on June 1 and interest payments semi - annually on June 1 and
December 1 from Water Fund Revenues.
City of Palo Alto Loan — The Cities of Palo Alto and Mountain View began a joint project
to construct a reclaimed water pipeline project (Project) in 2004. In October 2007, the City
of Palo Alto approved a $9.0 million loan agreement with the State Water Resources
Control Board (SWRCB) to finance a portion of the Project. Under the terms of the loan
agreement, the Project received $7.5 million in proceeds. The additional $1.5 million due
on the loan represents in- substance interest. Payments are due annually on the loan for
twenty years following the completion of the construction. The City agreed to repay Palo
Alto a $6.0 million share of this loan to finance $5.0 million of the costs of the Project
within the City under the same terms as the original loan agreement with SWRCB. The
City will pay $300,000 annually for twenty years. The project has been completed and
payments on the loan commenced on June 30, 2010.
In fiscal year 2014, the City called the 2001 Tax Refunding Bonds and the 2004 Tax
Allocation Refunding Bonds for the amounts of $4.5 million and $7.6 million respectively.
As of June 30, 2014, the City had no outstanding defeased debt.
G Debt Service Requirements:
The pledge of future tax increment revenues ends upon repayment of the $74.7 million in
remaining debt service on the Shoreline Community's 2011 Revenue Bonds and 2014
Bank Loan which is scheduled to occur in fiscal year 2041. For fiscal year 2014 tax
increment revenues amounted to $31.0 million which represented coverage of 4.5 over the
$6.9 million in debt service.
The pledge of future special assessment levies ends upon repayment of the $301,000 in
remaining debt service on the Special Assessment debt with City Commitment which is
scheduled to occur in fiscal year 2022. For fiscal year 2014 special assessment revenues
amounted to $52,000 which was used to fund debt service of $50,000.
The pledge of future Water Fund Revenues ends upon repayment of the $9.4 million in
remaining debt service on the bonds which is scheduled to occur in fiscal year 2029. For
fiscal year 2014, Water Fund Revenues including operating revenues, non - operating
interest earnings and transfers in amounted to $29.2 million and operating costs including
operating expenses, but not interest, depreciation or amortizations amounted to $21.5
million. Net Revenues available for debt service amounted to $7.7 million which
represented coverage of 12.2 over the $629,000 in debt service.
74
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 - NONCURRENT LIABILITIES (Continued)
Annual debt service requirements to maturity are as follows (dollars in thousands):
Reconciliation of governmental activities long -term debt principal (dollars in thousands):
Govemmental Business -type
Principal requirement as reported above $ 52,116 11,290
Less unamortized discount 0 (750)
Total long -term debt principal, net $ 52,116 10,540
There are a number of limitations, covenants and restrictions contained in the various bond
indentures. The City is in compliance with all material limitations, covenants and
restrictions.
75
Governmental Activities
Business -type Activities
For the Fiscal Year
Ending June 30
Principal
Interest
Total
Principal
Interest
Total
2015
$ 5,535
2,052
7,587
635
291
926
2016
7,187
1,934
9,121
650
277
927
2017
4,783
1,779
6,562
665
264
929
2018
3,355
1,669
5,024
680
250
930
2019
3,453
1,561
5,014
690
234
924
2020 -2024
7,385
6,386
13,771
3,715
915
4,630
2025 -2029
4,235
5,127
9,362
4,255
383
4,638
2030 -2034
5,470
3,843
9,313
0
0
0
2035 -2039
7,185
2,076
9,261
0
0
0
2040 -2041
3,528
206
3,734
0
0
0
Total
52,116
26,633
78,749
11,290
2,614
13,904
Reconciliation of governmental activities long -term debt principal (dollars in thousands):
Govemmental Business -type
Principal requirement as reported above $ 52,116 11,290
Less unamortized discount 0 (750)
Total long -term debt principal, net $ 52,116 10,540
There are a number of limitations, covenants and restrictions contained in the various bond
indentures. The City is in compliance with all material limitations, covenants and
restrictions.
75
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 7 — NONCURRENT LIABILITIES (Continued)
D. Landfill Containment
The City is responsible for managing and controlling methane gas and containment of
leachate at three former City- operated landfill sites.
Pursuant to a Postclosure Maintenance Plan filed with the State, the City is obligated for
additional postclosure care costs for two of its landfill sites in the amount of $2.5 million
(adjusted) annually for a period of thirty (30) years. The estimated costs of postclosure care
are subject to changes such as the effects of inflation, revision of laws and other variables.
The remaining amount of this obligation as of June 30, 2014, is approximately $32.1
million. Annual revenues from the Solid Waste Enterprise Fund will fund the postclosure
care costs. In accordance with a State - mandated Financial Assurance Mechanism (FAM),
the City has pledged future Solid Waste Enterprise Fund revenues in the adjusted amount
of $2.5 million per year for postclosure care costs on these two landfill sites. A third
landfill site did not require a FAM to be established for the closure of the site, and,
therefore, is excluded from the obligation.
In 2013 CalRecycle regulations required the City to create a reserve, in whole or
incrementally, for potential corrective actions associated with non -water release event at
the Vista Site. The City estimated this to be $1.3 million, and on June 25, 2013, the City
Council approved to restrict funds for Landfill Containment in the Landfill reserve of the
Shoreline Community Fund.
E. Debt without City Commitment
As part of the City's program to provide affordable rental housing for low and moderate
income households, the City assisted the developer of the Villa- Mariposa housing project
in the issuance of multifamily housing revenue bonds. These bonds are secured by a First
Deed of Trust on the project and by municipal insurance and are payable solely out of
revenues from the project. Neither the faith and credit nor the taxing power of the City, the
State, or any political subdivision thereof are pledged for the payment of the principal or
interest on the bonds. The outstanding balance due on these bonds as of June 30, 2014, is
$18.3 million.
76
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLAN
A. Plan Description
All regular and some temporary employees are required to participate in the Public
Employees' Retirement Fund (Fund) of the State's Public Employees Retirement System
(CalPERS). The Fund is an agent multiple - employer defined benefit retirement plan that
acts as a common investment and administrative agent for various local and state
government agencies within California. The Fund provides retirement, disability and death
benefits based on the employee's years of service, age and highest year of compensation.
Employees vest after five years of service and normally receive retirement benefits at age
50 for public safety employees and age 55 for miscellaneous employees (nonsafety
employees).
Benefit provisions and all other requirements are established by State statute and City
resolution. Copies of CalPERS' annual financial report may be obtained from their
Executive Office - 400 P Street, Sacramento, California 95814.
B. Funding Policy
Classic participants are required to contribute 9.0 percent of covered payroll for public
safety personnel and 8.0 percent for miscellaneous employees. The City is required to
contribute at an actuarially determined rate. The contribution requirements of the plan
members and the City are established and may be amended by CalPERS.
Assembly Bill 340 (AB340) created the Public Employees' Pension Reform Act ( PEPRA)
that implemented new benefit formulas and final compensation periods, as well as new
contribution requirements for new employees hired on or after January 1, 2013, who meet
the definition of a new member under PEPRA.
The details of the PEPRA provisions are as follows:
S afety
Benefit Formula 2.7% at Age 57
Final Compensation Period Average of the highest 3 years
Miscellaneous
2.0% at Age 62
Average of the highest 3 years
Employer Contribution Rate as a
Percentage of Payroll 0.0% of Reportable Compensation 0.0% of Reportable Compensation
Minimum Member Contribution
Rate as a Percentage of Payroll 11.25% of Reportable Compensation 6.25% of Reportable Compensation
77
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 8 — EMPLOYEE RETIREMENT PLAN (Continued)
C. Actuarially Determined Contribution Requirements and Contributions
For fiscal year 2014, the City's annual pension costs for Ca1PERS were equal to the City's
required and actual contributions. The required contributions were determined as part of
the June 30, 2012 actuarial valuation using the entry age normal actuarial cost method.
The actuarial assumptions include (a) 7.50 percent investment rate of return (net of
administrative expenses), (b) projected annual salary increases that vary by duration of
service and (c) 3.00 percent per year cost -of- living adjustments. Both (a) and (b) included
an inflation component of 2.75 percent. The actuarial value of Ca1PERS assets was
determined using a 15 year smoothed market technique that smooth's the effects of short -
term volatility of the market value of investments. The CalPERS unfunded actuarial
accrued liability is being amortized as a level percentage of projected payroll on a closed
basis. The remaining amortization period of the unfunded actuarial liability is 19 years for
miscellaneous employees and 28 years for safety employees.
D. Trend Information
Three -year historical trend information is presented below (dollars in thousands):
Fiscal
Annual
Percentage
Year
Pension
of APC
Ended
Cost (APC)
Contributed
2012
S 14,071
100%
2013
14,104
100%
2014
14,897
100%
E. Funding Progress
The following schedule of funding progress is presented for the most recent actuarial
valuations as of June 30, 2012 (dollars in thousands):
78
Unfunded
(Overfunded)
Liability as %
of Payroll
186.48%
201.10%
210.23%
Entry Age
Unfunded
Annual
Valuation
Accrued
Value of
(Overfunded)
Funded
Covered
Date
Liability
Assets
Liability
Ratio
Payroll
2010
$ 490,502
$ 386,383
$ 104,119
78.8%
$ 55,834
2011
520,213
408,652
111,561
78.6%
55,482
2012
545,937
430,795
115,142
78.9%
54,770
78
Unfunded
(Overfunded)
Liability as %
of Payroll
186.48%
201.10%
210.23%
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — POST - EMPLOYMENT BENEFITS
By Council resolution and through agreements with its labor units, the City provides certain health
care benefits for retired employees (spouse and dependents are not included for PERS Miscellaneous
employees not in Public Employees' Medical and Hospital Care Act (PEHMCA)) under a single
employer defined benefit plan. The City also offers a Defined Contribution Plan to the following
employee groups: SEW Clerical and Technical, EAGLES, Miscellaneous and Management
employees. If an employee elects to participate in the Defined Contribution Plan, the City makes
contributions on behalf of the employee into a Health Savings Account (HSA). Employees who have
elected the Defined Contribution Plan are not included in the City's actuarial valuation for Retirees'
Health.
A summary of eligibility and retiree contribution requirements by employee group is as follows:
Wei
Eligibility Rule
(continuous years
Retiree
Hire Date
of service)
Contribution Requirement
Fire Safety
N /A*
5 years vesting with
Same contribution % as active employees
PERS
Sworn Police
N /A*
5 vesting ith
ears
years g
Same contribution % as active employees
If retirement occurred prior to July 1, 1992
Prior to July 1, 1990
At least 5
- None
If retirement occurs on or after July 1, 1992
Non -Sworn
- 15% of the single rate premium cost
July 1, 1990 through
At least 15
15% of the single rate premium cost
Police
June 30 2007
July 1, 2007 and later
At least 15
15% of the single rate premium cost of any
HMO plan offered by the City
Prior to September 1 1989
At least 5
None
September 1, 1989 through
At least 15
None
June 30, 2007
July 1, 2007 and later
At least 15
15% of the single rate premium cost of any
HMO plan offered by the City
July 1, 2010 and later
SEW
Choice of:
Maintenance
15% of the single rate premium cost of any
Defined Benefit Plan
At least 15
HMO plan offered by the City
or
Defined Contribution Plan
City Contribution to a Health Savings Account
0 -5
$225.23 per month
6 -10
$281.54 per month
More than 10
$337.84 per month
Wei
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — POST - EMPLOYMENT BENEFITS (Continued)
80
Eligibility Rule
(continuous years
Retiree
Hire Date
of service )
Contribution Requirement
If retirement occurred prior to March 1, 1993
— None
If retirement occurred between March 1, 1993
and June 27, 1998
Prior to September 1, 1989
At least 5
—15% of the total single rate premium cost
If retirement occurs after June 27, 1998
— None if the retiree enrolls in a HMO; 15% of
the single rate premium cost if the retiree
enrolls in a PPO plan
September 1, 1989 through
None if retiree enrolls in a HMO plan;
At least 15
15% of the single rate premium cost if the
SEW Clerical
June 30, 2007
retiree enrolls in a PPO plan
and Technical
15% of the single rate premium cost of any
July 1, 2007 and later
At least 15
HMO plan offered by the City
July 1, 2010 and later
Choice of:
15% of the single rate premium cost of any
Defined Benefit Plan
At least 15
HMO plan offered by the City
or
Defined Contribution Plan
City Contribution to a Health Savings Account
0 -5
$225.23 per month
6 -10
$281.54 per month
More than 10
1 $337.84 per month
80
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — POST - EMPLOYMENT BENEFITS (Continued)
* As of March 31, 2014, all PERS Public Safety employees migrated to the PEMHCA
As of June 30, 2014, approximately 344 participants were eligible to receive benefits.
81
Eligibility Rule
(continuous years
Retiree
Hire Date
of service )
Contribution Requirement
If retirement occurred prior to March 1, 1993
Prior to August 1, 1989
At least 5
— None
If retirement occurrs on or after March 1, 1993
—15% of the total single rate premium cost
August 1, 1989 through
At least 15
If retirement occurred prior to January 1, 1997
June 30, 2007
— Retirees do not qualify for benefits
If retirement occurs on or after January 1, 1997
5 but less than 10
50% of the single rate premium cost
EAGLES,
10 but less than 15
35% of the single rate premium cost
Miscellaneous
15 or more
15% of the single rate premium cost
and
July 1, 2007 and later
Management
Choice of:
15% of the single rate premium cost of any
Defined Benefit Plan
At least 15
HMO plan offered by the City
or
Defined Contribution Plan
City Contribution to a Health Savings Account
0 -5
$225.23 per month
6 -10
$281.54 per month
More than 10
$337.84 per month
PERS Safety,
Management,
NSA*
5 years vesting with
Same Contribution % as active employees
and
PERS
Professional
* As of March 31, 2014, all PERS Public Safety employees migrated to the PEMHCA
As of June 30, 2014, approximately 344 participants were eligible to receive benefits.
81
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — POST - EMPLOYMENT BENEFITS (Continued)
A. Funding Policy and Actuarial Assumptions
The annual required contribution (ARC) was determined as part of a July 1, 2013 actuarial
valuation using the entry age normal actuarial cost method. This is a projected benefit cost
method, which takes into account those benefits that are expected to be earned in the future
as well as those already accrued. The actuarial assumptions included (a) an inflation rate of
5.00% each year, (b) 7.61 percent investment rate of return, (c) 3.25 percent projected
annual salary increase, and (d) 6.4 percent health care cost trend rate increase declining to
an ultimate rate of 5.0 percent. The health care cost trend rate is the rate of change in per
capita health claims costs over time as a result of factors such as medical inflation,
utilization of healthcare services, plan design, and technological developments. The
actuarial methods and assumptions used include techniques that smooth the effects of
short -term volatility in actuarial accrued liabilities and the actuarial value of assets.
Actuarial calculations reflect a long -term perspective and actuarial valuations involve
estimates of the value of reported amounts and assumptions about the probability of events
far into the future. Actuarially determined amounts are subject to revision at least
biennially as results are compared to past expectations and new estimates are made about
the future. The City's OPEB unfunded actuarial accrued liability is being amortized as a
level percentage of projected payroll using a closed 30 year amortization period.
In accordance with the City's budget, the ARC is to be funded throughout the year as a
percentage of payroll. During fiscal 2008, the City Council passed a resolution to
participate in the California Employers Retirees Benefit Trust ( CERBT), an irrevocable
trust established to fund OPEB. CERBT is administrated by CalPERS, and is managed by
an appointed board not under the control of the City Council. This Trust is not considered a
component unit by the City and has been excluded from these financial statements.
Separately issued financial statements for CERBT may be obtained from CALPERS at
P.O. Box 942709, Sacramento, CA 94229 -2709.
82
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — POST - EMPLOYMENT BENEFITS (Continued)
B. Funding Progress and Funded Status
Generally accepted accounting principles permits contributions to be treated as OPEB
assets and deducted from the Actuarial Accrued Liability (AAL) when such contributions
are placed in an irrevocable trust or equivalent arrangement. In fiscal year 2014, the City
made contributions in excess of the annual required contribution (ARC) and amortized its
net OPEB obligation as presented below (dollars in thousands):
Annual required contribution (ARC) $ 3,687
Interest on net OPEB asset (2,790)
Adjustment to annual required contribution 2,540
Annual OPEB Cost (expense) 3,437
Contributions made:
Contributions to OPEB Trust 855
Current year premiums paid 3,039
Total contributions: 3,894
Contributions in excess of the ARC 457
Net OPEB Asset at June 30, 2013 36,666
Net OPEB Asset at June 30, 2014 $ 37,123
The Plan's annual required contributions and actual contributions for the three years ended
June 30 are set forth below (dollar in thousands):
Fiscal Year
Annual
Actual
Ended
OPEB Cost
Contribution
2012
$ 3,685
5,395
2013
3,623
4,254
2014
3,437
3,894
83
Percentage
of ARC
Net OPEB
Contributed
Asset
146%
36,035
117%
36,666
113%
37,123
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — POST - EMPLOYMENT BENEFITS (Continued)
The Schedule of Funding Progress presents trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liability for benefits. Trend data from the latest available July 1, 2013 actuarial study is
presented below:
After the production of the actuarial reports used to prepare the above table, the City made
additional contributions to CERBT, and as of June 30, 2014 the market value of the
accumulated contributions and investment income was $86.0 million. In addition to the
above amounts, the City held $342,000 of cash and investments in its Retirees' Health Plan
Internal Service Fund at June 30, 2014.
G Public Employees' Medical and Hospital Care Act (PEMHCA)
On March 1, 2014, the City's public safety employees migrated to the PEMHCA, a
healthcare coverage provided by CalPERS. The City's monthly contribution for each
employee or qualified annuities shall be the amount necessary to pay the full cost of his /her
enrollment, including the enrollment of family members in a health benefits plan or plans.
For single -level coverage, the City pays the full premium for full -time regular employees
and eligible retirees for any plan, up to, but not exceeding, the single- coverage premium for
the maximum plan. For dependent level coverage, the City pays 92 percent of the total
premium for the employee and dependents, up to, but not exceeding, 92 percent of the two -
party or family premium for the maximum plan. The maximum plan for active employees
and pre- Medicare retirees is the plan with the third - highest Bay Area Region Basic plan
rate (Kaiser in 2014). For Medicare - eligible retirees, the maximum plan is the average of
all Bay Area Region "Supplement to Medicare" or "Combination" rates, depending on the
plan selected by the retiree.
84
Overfunded
Overfunded
(Underfunded)
Entry Age
(Underfunded)
Actuarial
Actuarial
Actuarial
Actuarial
Actuarial
Liability as
Valuation
Value of
Accrued
Accrued
Funded
Covered
Percentage of
Date
Assets
Liability
Liability
Ratio
Payroll
Covered Payrot
7/1/2010
$ 46,441
78,789
(32,348)
58.94%
55,583
(58.2 %)
7/1/2011
53,984
82,688
(28,704)
65.29%
44,844
(64.0 %)
7/1/2013
69,469
94,859
(25,390)
73.23%
49,890
(50.9 %)
After the production of the actuarial reports used to prepare the above table, the City made
additional contributions to CERBT, and as of June 30, 2014 the market value of the
accumulated contributions and investment income was $86.0 million. In addition to the
above amounts, the City held $342,000 of cash and investments in its Retirees' Health Plan
Internal Service Fund at June 30, 2014.
G Public Employees' Medical and Hospital Care Act (PEMHCA)
On March 1, 2014, the City's public safety employees migrated to the PEMHCA, a
healthcare coverage provided by CalPERS. The City's monthly contribution for each
employee or qualified annuities shall be the amount necessary to pay the full cost of his /her
enrollment, including the enrollment of family members in a health benefits plan or plans.
For single -level coverage, the City pays the full premium for full -time regular employees
and eligible retirees for any plan, up to, but not exceeding, the single- coverage premium for
the maximum plan. For dependent level coverage, the City pays 92 percent of the total
premium for the employee and dependents, up to, but not exceeding, 92 percent of the two -
party or family premium for the maximum plan. The maximum plan for active employees
and pre- Medicare retirees is the plan with the third - highest Bay Area Region Basic plan
rate (Kaiser in 2014). For Medicare - eligible retirees, the maximum plan is the average of
all Bay Area Region "Supplement to Medicare" or "Combination" rates, depending on the
plan selected by the retiree.
84
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 10 —RISK MANAGEMENT
The City is exposed to various risks of loss related to torts, errors and omissions, injuries to
employees or others, unemployment and certain health care benefits of employees. The City
has established various self - insurance programs to account for and finance its uninsured risks of
loss. Under the self - insurance programs, the City retains the risk of loss up to a maximum of
$1.0 million or general liability claims, $750,000 for workers' compensation claims with
statutory excess insurance and actual costs incurred for unemployment and certain healthcare
benefits.
For general liability claims, the City has excess liability coverage through the Authority for
California Cities Excess Liabilities ( ACCEL) to cover the risk of loss for claims in excess of
$1.0 million per incident. ACCEL is a joint powers authority of medium -sized California
municipalities which pools catastrophic general liability, automobile liability and public
officials' errors and omissions losses.
Charges to the General Fund and other insured funds are determined from an analysis of self -
insured claims costs and reserve requirements and are recorded as operating expenditures or
expenses of such funds and operating revenues of the various Internal Service Funds.
Estimated liabilities are recorded for claims in cases where such amounts are reasonably
determinable and where the liability is likely for claims which are incurred through the end of
the fiscal year but not reported until after that date. The estimated liability is determined based
upon historical claims data and independently determined estimates of the amounts needed to
pay prior and current year claims.
Changes in accrued self - insurance claims for the fiscal year ended June 30 are as follows
(dollars in thousands):
Beginning Balance
Liability for current and change in prior fiscal year claims
and claims incurred but not reported (IBNR)
Claims paid
Ending Balance
Current portion
2014 2013
$ 8,691 8,340
2,089 1,730
(1,300) (1,379)
$ 9,480 8,691
$ 3,277 3,560
The City has not significantly reduced its insurance coverage from the prior fiscal year.
Furthermore, settlements have not exceeded insurance coverage for the past three fiscal years.
85
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE It - NET POSITION AND FUND BALANCES
A. Net Position
Net position is the excess of all the City's assets and deferred outflows over all its liabilities
and deferred inflow, regardless of fund. Net position is divided into three captions on the
Statement of Net Position. These captions apply only to net position, which is determined
at the Government -wide level and proprietary funds and are described below:
Net Investment in Capital Assets, describes the portion of net position which is represented
by the current net book value of the City's capital assets, less the outstanding balance of any
debt issued to finance these assets.
Restricted describes the portion of net position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws or other
restrictions which the City cannot unilaterally alter. These principally include developer fees
received for use on capital projects, debt service requirements and funds restricted to low and
moderate income purposes.
Unrestricted describes the portion of net position which is not restricted as to use.
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current
assets generally represent a fund's cash and receivables, less its liabilities.
The City's fund balances are classified in accordance with Governmental Accounting
Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting and
Governmental Fund Type Definitions, which requires the City to classify its fund balances
based the long -term amounts of loans and on spending constraints imposed on the use of
resources. For programs with multiple funding sources, the City prioritizes and expends
funds in the following order: Restricted, Committed, Assigned and Unassigned. Each
category in the following hierarchy is ranked according to the degree of spending constraint:
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required to
be maintained intact, such as Permanent Funds, and assets not expected to be converted to
cash, such as inventories and prepaids, the long term amounts of loans and notes receivable
and land held for resale are included. However, if proceeds realized from the sale or
collection of nonspendable assets are restricted, committed or assigned, then nonspendable
amounts are required to be presented as a component of the applicable category.
86
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 11 - NET POSITION AND FUND BALANCES (Continued)
Restricted fund balances have external restrictions imposed by creditors, grantors,
contributors, laws, regulations, or enabling legislation which requires the resources to be
used only for a specific purpose. Encumbrances and nonspendable amounts subject to
restrictions are included along with spendable resources.
Committed fund balances have the most binding constraints imposed by resolution of the
City Council, which may only be altered by resolution of the City Council. Encumbrances
and nonspendable amounts subject to council commitments are included along with
spendable resources.
Assigned fund balances are amounts constrained by the City's intent to be used for a specific
purpose, but are neither restricted nor committed. Intent is expressed by the City Council or
its designees and may be changed at the discretion of the City Council or its designees. The
City Council has not delegated the authority to make assignments of fund balance. This
category includes encumbrances. This category also includes nonspendables, when it is the
City's intent to use proceeds or collections for a specific purpose and residual fund balances,
if any, of Special Revenue, Capital Projects and Debt Service Funds which have not been
restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted,
committed or assigned. This includes the residual general fund balance and residual fund
deficits, if any, of other governmental funds.
87
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 11 - NET POSITION AND FUND BALANCES (Continued)
Detailed classifications of the City's Fund Balances, as of June 30, 2014, is as follows
(dollars in thousands):
Fund Balance Classifications
Nonspendables:
Items not in spendable form:
Inventory
Deposits and prepaid costs
Advances to other funds
Total Nonspendable Fund
Restricted for:
Shoreline Regional Park Community
General Capital Projects
Gas Tax
Vehicle Registration Fee
Constriction & Conveyance Tax
Below Market Housing
Transit Oriented Development
Downtown Benefit Assessment
Grants
Police Asset Forfeitures
Cable Television
Deferred Assessments
Housing Successor
Debt Service
Storm Drain Constriction
Park Land Dedication Fees
Total Restricted Fund Balances
Shoreline
Regional Below General Park Other
Park Market Capital Land Governmental
General Community Housing Projects Dedication Funds
$ 327
0
0
0
0
67
11
0
0
0
0
0
2,938
0
0
0
0
0
3,276
0
0
0
0
67
0
0
0
0
48,835
0
0
0
0
0
0
0
35,587
0
0
0
0
0
0
0
2,451
0
0
0
0
0
450
0
0
0
0
0
10,325
0
0
37,391
0
0
0
0
0
0
0
0
2,738
0
0
0
0
0
8,432
0
0
0
0
0
16,917
0
0
0
0
0
110
0
0
0
0
0
734
0
0
0
0
0
352
0
0
0
0
0
13,128
0
0
0
0
0
3,122
0
0
0
0
0
659
0
0
0
0
37,468
0
0
48,835
37,391
35,587
37,468
59,418
Committed to:
General Fund Building Operations
14,703
0
0
0
0
0
Bridget Contingency
5,163
0
0
0
0
0
Earned Lease Revenue
478
0
0
0
0
0
Property Management
1,600
0
0
0
0
0
Graham School Field Maintenance
1,238
0
0
0
0
0
Construction Improvement Program
6,520
0
0
0
0
0
Open Space Acquisition
2,540
0
0
0
0
0
Strategic Land Acquisition
7,067
0
0
0
0
0
Childcare Commitment
1,578
0
0
0
0
0
Compensated Absences
6,884
0
0
0
0
0
Total Committed Fund Balances
47,771
0
0
0
0
0
Assigned to:
Contractual Obligations
1,498
0
0
0
0
0
Total Assigned Fund Balances
1,498
0
0
0
0
0
Unassigned:
General fund
36,880
0
0
0
0
0
Shoreline Golf Links
0
0
0
0
0
(18)
Total Unassigned Fund Balances
36,880
0
0
0
0
(18)
Total Fund Balances
$ 89.425
48.835
37.391
35.587
37.468
59.467
88
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE II - NET POSITION AND FUND BALANCES (Continued)
G Committed Fund Balances and Stabilization Arrangements
On December 13, 1976, the City Council adopted Council Policy A -11, revised on March
27, 2007, which established the following Reserve funds.
1. The General Fund Reserve which shall be used for: (1) City Council approved
expenditures not appropriated during the Annual budget process; (2) to cover
unanticipated revenue shortfalls; (3) in situations of extreme physical or financial
emergency (with the approval of the City Council); and (4) as a funding source for
interfund loans and other loans or advances from the General Fund as approved by
Council.
2. The Capital Improvement Projects Reserve shall be used for the funding of capital
improvement projects authorized by the City Council. To the extent possible, General
Operating Fund carryovers remaining from the end of the fiscal year, not assigned or
committed for other purposes, may be applied to this Reserve.
3. The Open Space Acquisition Reserve shall be used for the purpose of acquiring open
space authorized by the City Council. Proceeds from excess City -owned properties
shall fund this Reserve as directed by City Council.
4. The Strategic Property Acquisition Reserve shall be used for the purpose of setting
aside specific funds for the City to use for the acquisition of strategic properties.
5. The Property Management Reserve shall be used to provide a source of funds for
obligations which could arise from the City's leasing of property in the North
Bayshore Area, including legal, environmental testing, or other costs normally
incurred by a lessor.
6. The Graham School Maintenance Reserve shall be used to fund the maintenance
obligations, per the agreement with the school district, of the playing field at Graham
Middle School beneath which the City has a reservoir.
7. The Child -Care Commitment Reserve shall be used to fund the future obligation
payment of the City -owned building built for and leased to an operator for the
purposes of child care.
8. The Compensated Absences Reserve shall fund the disbursements to separated or
retired employees for accrued vacation and sick leave, as applicable.
.
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 11 - NET POSITION AND FUND BALANCES (Continued)
9. The Equipment Replacement Reserve shall be maintained to fund the replacement of
capital equipment. The financial objectives of this fund is to permit the budgeting of
level annual amounts for capital equipment replacement while utilizing this fund's
reserves to absorb the cash flow variations caused by the timing of asset
replacements. Appropriations for this fund will be requested in the annual budget. It
is policy direction that capital assets not be replaced before the end of their useful life
unless justified by operating necessity.
10. The Retirees' Health Insurance Program Reserve will be accounted for in accordance
with Generally Accepted Accounting Principles (GAAP) which includes a periodic
actuarial valuation of the City's liability and for each fund to contribute, to the extent
possible, its Annual Required Contribution (ARC). In addition, to the extent possible,
payments toward the Unfunded Actuarial Accrued Liability (UAAL) shall be made.
D. Minimum Fund Balance Policies
The City's Financial and Budgetary Policy requires the City to strive to maintain 1) 25
percent of General Operating Fund appropriations in the General Fund Reserve, 2) $5.0
million in the Capital Improvement Projects reserve, 3) The workers compensation reserve
a minimum provision to cover projected liabilities and two catastrophic losses at the City's
current level of self - insured retention, 4) $2.0 million plus expected claims settlements in
the Liability Self- Insurance Reserve and 5) The enterprise fund reserves shall maintain a
minimum 10 percent of operating budget for emergency, a minimum of 5 percent operating
budget for contingency and a goal of 10 percent of operating budget for rate stabilization.
NOTE 12 — COMMITMENTS AND CONTINGENCIES
A. Encumbrances
As of June 30, 2014, the City has outstanding encumbrances as follows:
General Fund $ 2,735
Shoreline Regional Park Community 147
Below Market Housing 1,352
General Capital Projects 21,460
Non -Maj or Governmental Funds 150
$ 25,844
•11
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 12 — COMMITMENTS AND CONTINGENCIES (Continued)
B. Litigation
The City is a defendant in several lawsuits and other matters arising in the normal course of
operations. The City's management and legal counsel are of the opinion the potential claims
against the City not covered by insurance resulting from such litigation would not
materially affect the financial position of the City.
G Grant Programs
The City participates in Federal and State grant programs. These programs have been
audited through the fiscal year ended June 30, 2014 by the City's independent auditors in
accordance with the provisions of the federal Single Audit Act amendments of 1996 and
applicable State requirements.
No cost disallowances were proposed as a result of these audits; however, these programs are
still subject to further examination by the grantors and the amount, if any, of expenditures
which may be disallowed by the granting agencies cannot be determined at this time. The
City expects such amounts, if any, to be immaterial.
D. City of Palo Alto Regional Water Quality Control Plant
The City has an agreement with the City of Palo Alto to purchase treatment capacity at the
Palo Alto Regional Water Quality Control Plant. The agreement provides that the City will
purchase capacity for 50 years. The agreement also provides for Palo Alto to set service
charges annually with quarterly billings based on estimated use. A reconciliation of actual
to estimated charges is completed annually. For fiscal year 2014, these costs totaled $7.6
million.
E. Sunnyvale Material Recovery and Transfer (SMaRT) Station
During fiscal year 1993, the City entered into a Memorandum of Understanding (MOU)
with the City of Sunnyvale to obtain solid waste and recycling services at the Sunnyvale
Materials Recovery and Transfer (SMaRT) Station. The MOU provides that the City has
capacity share of 23.45 percent of this facility for 30 years. Annual service charges are
determined based on actual per -ton charges. For fiscal year 2014, these costs totaled $7.6
million.
91
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 12 — COMMITMENTS AND CONTINGENCIES (Continued)
F. Education Enhancement Reserve Joint Powers Agreement
On June 30, 2013, the Shoreline Community entered into an Education Enhancement JPA
with the School Districts effective July 1, 2013 for a period of 10 years, superseding any
prior agreements. The agreement provides for minimum annual payments commencing
with fiscal year 2014 of $1.8 million and $2.9 million to MVLAUHS and MVWSD,
respectively. Each subsequent fiscal year increases based on the growth in property tax
revenues in the preceding fiscal year. In fiscal year 2014, the Shoreline Community paid
$4.7 million in contributions and recorded them in the Education Enhancement JPA
Agency Fund.
G. Tax Revenue Sharing
Pursuant to an Agreement between the City, the Shoreline Community, and the County
dated June 22, 2005, the Shoreline Community is annually obligated to pay the County
from tax increment revenues, an amount equal to the County's total retirement tax override
levies and pass- through an additional amount of taxes that would have been allocated to the
County in the absence of the existence of the Shoreline Community. In fiscal year 2014,
$1.3 million and $1.5 million in retirement tax override levies and pass- through payments,
respectively, were paid to the County.
K Bay Area Water Supply and Conservation Agency Revenue Bonds Surcharge
The City contracts with the City and County of San Francisco for the purchase of water from
the Hetch Hetchy System operated by the San Francisco Public Utilities Commission
( SFPUC). The City is also a member of the Bay Area Water Supply and Conservation
Agency (BAWSCA) which represents the interests of all the 24 cities and water districts, as
well as two private utilities, that purchase wholesale water from the SFPUC.
In 2009 the City entered into a new 25 year agreement with the SFPUC that includes a
minimum water delivery level of 5.341MGD. One of the ways the new agreement differs
from the old agreement is in how facilities constructed by the SFPUC that benefit the
regional customers are treated from a rate and financial perspective. Under the old
agreement, facilities were built, capitalized, and added to the rate base with a rate of return
(interest), and then paid for over their useful lives through wholesale rates. Under the new
agreement, the SFPUC issues revenue bonds and the debt service (which also includes an
interest component) is paid for through rates over the life of the bonds.
92
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 12 — COMMITMENTS AND CONTINGENCIES (Continued)
During the transition from the old to the new agreement, the issue of how to account for $370
million in assets that were still being paid for by the wholesale customers under the old
agreement was resolved. The assets were transferred to the new agreement, assigned a life
with an agreed upon rate of return of 5.13 %. Also negotiated was a provision to allow the
wholesale customers to prepay any remaining existing assets' unpaid principal balance
without penalty or premium. This prepayment was executed through the issuance of bonds
by BAWSCA which provide a better interest rate given the favorable rate environment.
BAWSCA issued Revenue Bonds (Bonds) in the principal amount of $335.8 million in
January 2013 to prepay the capital cost recovery payment obligation and fund a stabilization
fund. The Bonds mature in October 2034 and are secured by surcharges to the monthly
water purchase charges imposed upon the participating members. The Bonds are not a debt
obligation of any member, and BAWSCA's failure to pay its Bonds would not constitute a
default by any participating member.
Should any participating member fail to pay its share, BAWSCA will rely on the stabilization
fund and will pursue all legal remedies to collect the shortfall from the delinquent member.
In the interim, other participating members may have their portion adjusted to insure the
continued payment of the debt service surcharge.
The risk of bearing the debt service expense of a defaulting member is not significantly
different than the risk each member assumes currently for fluctuations in water purchase
charges. Under the Bond indenture, BAWSCA maintains a stabilization fund. If surcharge
revenues collected are less than needed (due to a member's failure to pay timely), BAWSCA
uses the stabilization fund to fund the debt service deficiency, and increases the surcharge in
the subsequent year to make up for the prior year shortfall and reimburse the stabilization
fund account. Also, given that each participating agency's governing body adopted a
resolution to participate in the Bond issue, Management believes that default is generally
very unlikely.
The annual debt service surcharges are a fixed amount for each participant and are calculated
by taking the subsequent fiscal year's debt service, multiplied by each participant's actual
water purchase as a percent of total wholesale customer water purchases from the prior fiscal
year. One - twelfth of the annual surcharge is included in the monthly bill from SFPUC.
Because each participant's share of the debt service surcharge is proportional to the amount
of water purchased during the prior fiscal year, the City's share of the debt service will
fluctuate from year to year.
The City paid its surcharge of $1.5 million during fiscal year 2014, which is included as a
component of purchased water expenses in the Water Enterprise Fund. The surcharge for
fiscal year 2015 is estimated to be $1.5 million.
93
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 13 — LEASING ARRANGEMENTS
A. Shoreline Amphitheatre Partners
In fiscal year 1986, the City and the Shoreline Community, as lessors, entered into a
35 -year operating lease with the Shoreline Amphitheatre Partners (SAP), an entity not
affiliated with the City or the Shoreline Community. This lease provided for the rental of
City land underneath the Shoreline Amphitheatre. The lease payments included a
minimum lease payment and a portion equal to a percentage of gross receipts, including
concession revenues, of Shoreline Amphitheatre operations. A substantial portion of the
future minimum lease payments was paid in advance by SAP in fiscal year 1997 as
permitted in the lease agreement.
On May 10, 2006, the City and SFX Entertainment, wholly owned by Live Nation, entered
into an Amended and Restated Amphitheatre Ground Lease Agreement (Agreement) for
the period from March 15, 2006 through December 31, 2020. As required by the
Agreement, the lessee pays annual base rent of $1.8 million to the City, due in $200,000
installments in the months of April through December. Additional rent and event rentals
are due in accordance with the terms of the Agreement. Beginning March 15, 2018, the
minimum lease payment shall be increased 2.0% each year, compounded.
In fiscal year 2014 lease payments of $1.8 million were received.
The future minimum lease payments due to the City under the aforementioned lease follow
(dollars in thousands):
Year Ending
June 30 Amount
2015
$ 1,800
2016
1,800
2017
1,800
2018
1,812
2019
1,848
Thereafter
3,158
Total $ 12,218
94
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 13 — LEASING ARRANGEMENTS (Continued)
B. Google Inc.
In fiscal year 1995, the City, as lessor, entered into a 55 -year lease with Silicon Graphics,
Inc. (SGI), an entity not affiliated with the City. This lease provides for the rental of City
land located within the Shoreline Community upon which SGI constructed a 500,000
square foot corporate campus.
In fiscal year 1997, the City, as lessor, entered into another 55 -year lease with SGL This
lease provides for the rental of City land located within the Shoreline Community upon
which SGI constructed a second 556,000 square foot facility.
On April 19, 2001, SGI assigned the two lease agreements described above to Goldman
Sachs, Inc., an entity not affiliated with SGI or the City. Goldman Sachs assigned the
agreements to WXIII/Crittenden Realty C, L.L.0 on May 22, 2001, which assigned the
agreements to Google Inc. (Google) on June 29, 2006.
The 1995 and 1997 lease agreements provide for rent increases of 4.0 percent per annum
and the rent is to be readjusted every 10 years to the greater of 7.0 percent of the then fair
market value of the property or the initial base rent.
In fiscal year 2008, the City, as lessor, entered into a 55 year lease with Google. The lease
provides for the rental of land within the Shoreline Community upon which Google intends
to construct a 310,000 square foot facility.
The 2008 lease agreement provides for rent increases of 3.0 percent per annum and the rent
is to be readjusted every 10 years to the greater of 7.0 percent of the then fair market value
of the property or the initial base rent.
The future minimum lease payments due to the City under the aforementioned three leases
follow (dollars in thousands):
Year Ending
June 30 Amount
2015
S 6,202
2016
5,867
2017
5,303
2018
4,555
2019
4,499
Thereafter
171,517
Total S 197,943
In fiscal year 2011, the City, as lessor, entered into a 53 year lease with Google. The lease
provides for the rental of land within the Shoreline Community upon which Google intends
to construct a 285,000 square foot facility.
95
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 13 — LEASING ARRANGEMENTS (Continued)
Google prepaid the rent for the initial 53 year lease term in the amount of $30.0 million,
which was deposited to the Unearned Land Lease Rent Agency Fund. Revenue is
recognized in the General Fund on a straight -line basis over the lease term. Any unearned
rent is held by the City as agent for Google. In fiscal year 2014, $581,000 of lease revenue
had been recognized.
G ROEM Development Corporation
In fiscal year 2011, the City, as lessor, entered into a 60 year lease with ROEM
Development Corporation (ROEM). The lease provides for the rental of land known as
135 Franklin Street, upon which ROEM has constructed an affordable family rental
housing development.
ROEM prepaid the rent for the initial 60 year lease term in the amount of $3.5 million.
Revenue is recognized in the General Fund on a straight -line basis over the lease term. In
fiscal year 2014, $59,000 of lease revenue had been recognized.
.,
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 14 — SUCCESSOR AGENCY TO THE MOUNTAIN VIEW REVITALIZATION
AUTHORITY
Redevelopment Dissolution
In 2011 and 2012, the state legislature enacted two laws, AB xl 26 and AB 1484, respectively, to
dissolve redevelopment agencies in California, including the Authority. The City elected to serve
as the Successor Agency.
In order to complete the dissolution process, the Successor Agency was charged with retiring all
remaining obligations of the Authority and disposing of the Authority's remaining real property
assets pursuant to an approved Long -Range Property Management Plan ( LRPMP). The Successor
Agency and Santa Clara County developed and presented a proposed dissolution plan (Dissolution
Package) to the Oversight Board and the Department of Finance (DOF) in an effort to complete
the dissolution process. On September 20, 2013, the Oversight Board approved the actions
necessary in the Dissolution Package and on October 22, 2013, the Successor Agency, City and
Shoreline Community took actions to approve and authorize the Dissolution Package to wind
down the affairs of the former Authority and terminate the Successor Agency. On November 14,
2013, the DOF reviewed the Oversight Board's approval of the Dissolution Package and approved
the Oversight Board's actions and also issued a Finding of Completion. As part of the Dissolution
Package, the Successor Agency also submitted a LRPMP. The DOF approved the LRPMP on
February 7, 2014.
Part of the Dissolution Package includes a revenue - sharing agreement with all the affected taxing
entities.
A. Dissolution Package
All the actions necessary to complete the wind -down process were included in the Dissolution
Package. In order to dissolve, all debts must be repaid and all properties must be transferred or
sold. The Dissolution Package composed of three major components necessary to wind down
the affairs of the former Authority. A description of each of the key elements is as follows:
1. Certificates of Participation
Certificates of Participation (COPs) were issued in 2003 to finance a portion of the
construction of Parking Structure 2 (located on California Street). The debt service
payments for these COPs were scheduled to continue through February 2019. The
COPs were eligible for call as of August 2013, without any premium or additional
costs, and paying them off early saved over $1.0 million in interest expense. On
January 31, 2014, the City called the certificates and paid the remaining amount due.
WA
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 14 — SUCCESSOR AGENCY TO THE MOUNTAIN VIEW REVITALIZATION
AUTHORITY (Continued)
2. Reinstatement of Certain Obligations
Three significant financial obligations were rendered unenforceable by the dissolution
law, but could be reinstated and repaid if allowed by the Oversight Board and approved
by the DOF. Two of these obligations were assets of the Shoreline Community, and
include a registered note of $2.4 million and 2003 TABs of $2.3 million for a total of
$4.7 million. The third obligation was a loan with a balance of $1.1 million from the
City to the Authority for downtown improvements. These three obligations totaled
$5.8 million. All of these loans were remeasured to the State of California Local
Agency Investment Fund (LAIF) rate as required by the dissolution legislation.
Total $ 24,612 11,476 19 (11,495) 0
The Dissolution Package included the City and Shoreline Community waiving
reinstatement of these obligations in exchange for a credit against the value of the
Bryant Street and Franklin Street properties, as explained in further detail below.
In addition, there was $509,000 ($363,000 from the 2003 TABs and $146,000 from the
2003 COPs) of bond proceeds that were used towards payment of the respective debt
issues.
98
Original Issue
Balance
Retirements/
Balance
Amount
June 30, 2013 Additions
Forgiven
June 30, 2014
2003 Tax Allocation Bonds
6.0 %, due 2018
$ 7,000
2,287 19
(2,306)
0
Pledge of Tax Increment for
the Repayment of the 2003
Certificates of Participation
3.5% to 5.375 %, due 2019
16,930
8,915
(8,915)
0
Plus deferred premium
682
274
(274)
0
Total $ 24,612 11,476 19 (11,495) 0
The Dissolution Package included the City and Shoreline Community waiving
reinstatement of these obligations in exchange for a credit against the value of the
Bryant Street and Franklin Street properties, as explained in further detail below.
In addition, there was $509,000 ($363,000 from the 2003 TABs and $146,000 from the
2003 COPs) of bond proceeds that were used towards payment of the respective debt
issues.
98
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 14 — SUCCESSOR AGENCY TO THE MOUNTAIN VIEW REVITALIZATION
AUTHORITY (Continued)
3. Long -Range Property Management Plan
The dissolution law allows properties to be retained for future development with the
approval of the Oversight Board and DOF.
a. Bryant Street Parcels and the Franklin Street Parcel
The Bryant Street and the Franklin Street parcels were purchased for assemblage to
adjoining City -owned land for redevelopment purposes. The Bryant Street parcels
were purchased by the Former Authority in 2002 for $1.9 million and were
appraised at $5.1 million. The Franklin Street parcel was purchased by the Former
Authority in 1999 for $725,000 and was appraised at $1.2 million.
The combined appraised value of these two parcels is $6.3 million. The value of
the waiver of the obligations described above are offset against the value of the two
properties and the difference in values will be paid by the City to be distributed to
the taxing entities. As part of the calculation, the remaining 2003 TABs bond
proceeds is paid back to the Shoreline Community in accordance with the bond
covenants and reduces the amount of the credit. The calculation is as follows
(dollars in thousands):
Appraised Value of Properties $ 6,250
City Loan $ 1,148
Registered Note 2,392
2003 TABs 2,306
Bond Proceeds 363
Total Credit 5,483
Balance Due from City $ 767
The credit is offset against the appraised value of the parcels and the balance due
will be paid by the City to the taxing entities to make them whole for the value of
the properties.
.;
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 14 — SUCCESSOR AGENCY TO THE MOUNTAIN VIEW REVITALIZATION
AUTHORITY (Continued)
Note payable activity for the period ended June 30, 2014 is as follows (dollars in
thousands):
Original Issue
Amount
Registered Note $ 2,021
Total $ 2,021
b. Parking Structures 1 and 2
Balance Balance
June 30, 2013 Additions Forgiven June 30, 2014
2,377 15 (2,392) 0
2,377 15 (2,392) 0
Pursuant to Health and Safety Code Section 34180(f), the City, with the approval
of the Oversight Board, may retain properties or other assets of the former
redevelopment agency by entering into a compensation agreement with the other
taxing entities to provide payments to them for the value of the property retained
in proportion to their shares of the base property tax determined pursuant to
Health and Safety Code Section 34188.
In recognition of the contribution by the tax increment to build these structures,
the City executed a compensation agreement with the taxing entities to share
revenues generated by the two parking structures (73.4 percent and 55.4 percent
for parking structure 1 and 2, respectively) for the remaining lives of the parking
structures. The City has used an estimated life of 40 years for its parking
structures.
The City will annually transfer the percentage share of any revenues to the
County Auditor - Controller and the County Auditor - Controller will distribute the
funds to each of the taxing entities. The terms of the Agreement also provides for
expenses such as future tenant selection, improvements, and capital repairs to be
deducted from future revenues. The approved LRPMP included the structures be
transferred to the City. Currently, CVS leases a portion of parking structure 2 and
pays the City $283,000 in annual rent. The taxing entities would share 55.4
percent of the annual rent or $157,000.
The agreement is effective on June 30, 2014, and the terms commence July 1,
2014 and continues until June 30, 2047. Routine maintenance costs will be borne
by the City or the Parking District. However, in the event of catastrophic damage
or destruction to the parking structures, the agreement would terminate with no
obligation of the City to replace the parking structures.
100
CITY OF MOUNTAIN VIEW, CALIFORNIA
Notes to Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 14 — SUCCESSOR AGENCY TO THE MOUNTAIN VIEW REVITALIZATION
AUTHORITY (Continued)
c. Transfer of Governmental- Purpose Properties from the Successor Agency to the
City
A variety of assets, including infrastructure assets (e.g., streets, sidewalks, etc.)
excluding the parking structures, with a net book value of $16.7 million as of June
30, 2014 were transferred from the former Authority to the City as follows
(dollars in thousands):
Less accumulated depreciation for
Buildings
Balance
(562)
Transfer to
Balance
Improvements other than buildings
June 30, 2013
Additions
City
June 30, 2014
Capital assets being depreciated:
(419)
(15)
434
0
Buildings
$ 22,464
0
(22,464)
0
Improvements other than buildings
873
0
(873)
0
Streetlights
781
0
(781)
0
Sidewalks, curbs and gutters
3,881
0
(3,881)
0
Streets and roads
3,143
0
(3,143)
0
Total capital assets being depreciated
31,142
0
(31,142)
0
Less accumulated depreciation for
Buildings
(9,285)
(562)
9,847
0
Improvements other than buildings
(273)
(57)
330
0
Streetlights
(419)
(15)
434
0
Sidewalks, curbs and gutters
(2,006)
(149)
2,155
0
Streets and roads
(1,677)
(20)
1,697
0
Total accumulated depreciation
(13,660)
(803)
14,463
0
Net capital assets being depreciated
$ 17,482
(803)
(16,679)
0
B. Tax Increment Pledge Requirements
The pledge of future tax increment revenues ends upon repayment of the $15.3 million in
remaining debt service on the Authority's long term debt which is scheduled to occur in
2019. As of June 30, 2014, all remaining debt of the former Authority was paid off and /or
forgiven.
With the dissolution of the Authority discussed above, Tax Increment is no longer
distributed, and instead the Successor Agency receives payments from the County's
Redevelopment Property Tax Trust Fund (RPTTF) that are to be used to pay enforceable
obligations, including debt service on the obligations, with no distinction between housing
and non - housing revenues. For fiscal year 2014, the Successor Agency received $284,000
for debt service. With the dissolution of the Successor Agency, no future RPTTF funds
will be distributed.
101
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NON -MAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
The Gas Tax Fund accounts for gas tax revenues received from the State and expended
for construction and maintenance of City streets.
The Vehicle Registration Fee Fund accounts for fees that voters approved to collect from
vehicle registrations. These fees are used to fund local road improvements and repairs.
These fees will expire on December 31, 2018.
The Construction and Conveyance Tax Fund accounts for revenues from taxes on real
property transferred in the City. These revenues are used for acquisition, improvement,
maintenance, expansion or implementation of the Capital Improvements Program.
The Transit Oriented Development Fund accounts for revenues to be used to encourage
development and rejuvenation of areas served by transit facilities.
The Housing Successor Fund accounts for the activities related to the housing assets
assumed by the City as Housing Successor to the former Revitalization Authority. The
activities are governed by California redevelopment law and must be used to provide
housing for people with low and moderate incomes.
The Shoreline Golf Links Fund accounts for revenues from user fees at Shoreline Golf
Links and related golf course operations and improvements.
The Downtown Benefit Assessment District Fund accounts for revenue received for off -
street parking, fees paid in -lieu of providing parking in the District and for annual
ad valorem rate and direct assessments levied against the property owners within the
District.
The Grants Fund accounts for grants received, including Community Development Block
Grants, Home Investment Partnership Act Grants, the Local Law Enforcement Block Grant
Program, the Supplemental Law Enforcement Services Grants and Traffic Safety grants.
The Police Asset Forfeitures Fund accounts for funds derived from criminal assets seized
by police, primarily from illegal narcotics sales activity.
The Cable Television Fund accounts for Public, Education and Government (PEG) fees
collected by the cable providers and restricted for PEG channel support. The City passes a
portion of these funds through to a third party to provide public, governmental and
educational access television services.
The Deferred Assessments Fund accounts for a program which allows certain property
owners to defer up to 100 percent of any special assessment levied on their property. The
assessment becomes due upon certain specified occurrences.
103
NON -MAJOR GOVERNMENTAL FUNDS (Continued)
DEBT SERVICE FUNDS
The 2001 Refunding Certificates of Participation Fund accounts for the resources used
for the purpose of paying the principal, interest and related costs on the 2001 Refunding
Certificates of Participation as they become due.
The Special Assessments Fund accounts for resources financed by special assessments
levied against property receiving special benefits, contributions from other funds for
general benefits and certain reserve requirements.
The Shoreline Regional Park Community 2001 Tax Allocation Bonds Fund accounts
for the resources used for the purpose of paying the principal, interest and related costs on
the Shoreline Regional Park Community 2001 Tax Allocation Refunding Bonds as they
become due.
The Shoreline Regional Park Community 2004 Tax Allocation Bonds Fund accounts
for the resources used for the purpose of paying the principal, interest and related costs on
the Shoreline Regional Park Community 2004 Tax Allocation Refunding Bonds as they
become due.
The Shoreline Regional Park Community 2011 Revenue Bonds Fund accounts for the
resources used for the purpose of paying the principal, interest and related costs on the
Shoreline Regional Park Community 2011 Revenue Bonds as they become due.
The Shoreline Regional Park Community 2014 Bank Loan Fund accounts for the
resources used for the purpose of paying the principal, interest and related costs on the
Shoreline Regional Park Community 2014 Bank Loan as they become due.
The City Child Care Center Financing 2008 Fund accounts for the resources used for
the purpose of paying the principal, interest and related costs on the 2008 Certificates of
Participation as they become due.
CAPITAL PROJECT FUND
The Storm Drain Construction Fund accounts for revenues derived from off -site
drainage fees used for storm drain projects in the Capital Improvements Program.
104
This Page Left Intentionally Blank
CITY OF MOUNTAIN VIEW, CALIFORNIA
Non -Major Governmental Funds
Combining Balance Sheets
June 30, 2014 (Dollars in Thousands)
106
SPECIAL REVENUE FUNDS
Vehicle
Construction
Transit
Registration
& Conveyance
Oriented
Gas Tax
Fee
Tax
Development
Assets:
Cash and investments
$
2,208
450
10,262
2,726
Restricted cash and investments
0
0
0
0
Receivables:
Accounts (net of allowances)
0
0
0
0
Taxes
227
0
0
0
Special assessments:
Deferred
0
0
0
0
Interest
16
0
68
12
Loans
0
0
0
0
Inventory
0
0
0
0
Total assets
$
2,451
450
10,330
2,738
Liabilities, deferred inflows of resources
and fund balances:
Liabilities:
Accounts payable and accrued costs
$
0
0
5
0
Refundable deposits
0
0
0
0
Unearned revenue
0
0
0
0
Total liabilities
0
0
5
0
Deferred inflows or resources:
Unavailable revenue - special assessment
0
0
0
0
Total deferred inflows of resources
0
0
0
0
Fund Balances:
Nonspendable
0
0
0
0
Restricted
2,451
450
10,325
2,738
Unrestricted
0
0
0
0
Total fund balances
2,451
450
10,325
2,738
Total liabilities, deferred inflows of
resources and fund balances
$
2,451
450
10,330
2,738
106
SPECIAL REVENUE FUNDS
107
Downtown
Benefit
Police
Housing
Shoreline
Assessment
Asset
Cable
Deferred
Successor
Golf Links
District
Grants
Forfeitures
Television
Assessments
353
372
8,419
100
110
734
352
0
5
0
0
0
0
0
0
0
1
4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
30
0
0
0
0
12,775
0
0
16,813
0
0
4
0
67
0
0
0
0
0
13,128
445
8,450
16,917
110
734
356
0
35
10
0
0
0
0
0
2
8
0
0
0
0
0
359
0
0
0
0
0
0
396
18
0
0
0
0
0
0
0
0
0
0
4
0
0
0
0
0
0
4
0
67
0
0
0
0
0
13,128
0
8,432
16,917
110
734
352
0
(18)
0
0
0
0
0
13,128
49
8,432
16,917
110
734
352
13,128
445
8,450
16,917
110
734
356
(Continued)
107
CITY OF MOUNTAIN VIEW, CALIFORNIA
Non -Major Governmental Funds
Combining Balance Sheets
June 30, 2014 (Dollars in Thousands)
108
DEBT SERVICE FUNDS
Shoreline
Shoreline
2001
Regional Park
Regional Park
Refunding
Special
Community
Community
COPS
Assessments
2001 TABS
2004 TABS
Assets:
Cash and investments
0
100
0 0
Restricted cash and investments
0
0
0 0
Receivables:
Accounts (net of allowances)
0
0
0 0
Taxes
0
0
0 0
Special assessments:
Deferred
0
206
0 0
Interest
0
0
0 0
Loans
0
0
0 0
Inventory
0
0
0 0
Total assets
0
306
0 0
Liabilities, deferred inflows of resources
and fund balances:
Liabilities:
Accounts payable and accrued costs
0
0
0 0
Refundable deposits
0
0
0 0
Unearned revenue
0
0
0 0
Total liabilities
0
0
0 0
Deferred inflows or resources:
Unavailable revenue - special assessment
0
204
0 0
Total deferred inflows of resources
0
204
0 0
Fund Balances:
Nonspendable
0
0
0 0
Restricted
0
102
0 0
Unrestricted
0
0
0 0
Total fund balances
0
102
0 0
Total liabilities, deferred inflows of
resources an fund balances
0
306
0 0
108
109
CAPITAL
DEBT SERVICE FUNDS
PROJECTS FUND
Shoreline
Shoreline
City Child
Total
Regional Park
Regional Park
Care Center
Storm
Nonmajor
Community
Community
Financing
Drain
Governmental
2011 Revenue Bonds
2014 Bank Loan
2008
Construction
Funds
0
18
0 655
26,859
3,002
0
0 0
3,007
0
0
0 0
5
0
0
0 0
227
0
0
0 0
206
0
0
0 4
131
0
0
0 0
29,592
0
0
0 0
67
3,002
18
0 659
60,094
0
0
0 0
50
0
0
0 0
10
0
0
0 0
359
0
0
0 0
419
0
0
0 0
208
0
0
0 0
208
0
0
0 0
67
3,002
18
0 659
59,418
0
0
0 0
(18)
3,002
18
0 659
59,467
3,002
18
0 659
60,094
109
CITY OF MOUNTAIN VIEW. CALIFORNIA
Non -Major Governmental Funds
Combining Statements of Revenues, Expenditures and
Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
110
SPECIAL REVENUE FUNDS
Vehicle
Construction
Transit
Registration
& Conveyance
Oriented
Gas Tax
Fee
Tax
Development
Revenues:
Taxes
$ 0
0
6,070
0
Licenses, permits and fees
0
0
0
0
Use of money and property
18
4
93
35
Intergovernmental revenues
2,391
441
0
0
Charges for services
0
0
0
968
Other
0
0
0
0
Total revenues
2,409
445
6,163
1,003
Expenditures:
Current:
General government
47
0
186
0
Public safety
0
0
0
0
Community development
0
0
0
1
Culture and recreation
0
0
0
0
Capital outlay
0
0
0
0
Debt service:
Principal repayment
0
0
0
0
Interest and fiscal charges
0
0
0
0
Total expenditures
47
0
186
1
Excess (deficiency) of revenues
over (under) expenditures
2,362
445
5,977
1,002
Other financing sources (uses):
Gain on sale of property
0
0
0
0
Proceeds from debt issue
0
0
0
0
Payment to bond escrow
0
0
0
0
Transfers in
155
5
781
7
Transfers (out)
(2,194)
(420)
(5,678)
(1,518)
Total other financing sources (uses)
(2,039)
(415)
(4,897)
(1,511)
Net change in fund balances
323
30
1,080
(509)
Beginning fund balances
2,128
420
9,245
3,247
Ending fund balances
$ 2,451
450
10,325
2,738
110
SPECIAL REVENUE FUNDS
Downtown
Benefit Police
Housing Shoreline Assessment Asset Cable Deferred
Successor Golf Links District Grants Forfeitures Television Assessments
0
0
508
0
0
0
0
0
0
339
0
0
0
0
2
2
146
65
0
0
0
0
0
3
1,407
23
0
0
0
2,506
2,078
0
0
0
0
0
4
0
161
0
238
0
2
2,512
3,074
1,633
23
238
0
0
0
0
0
0
196
0
0
0
0
111
60
0
0
0
0
351
0
0
0
0
0
2,322
0
0
0
0
0
0
24
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,346
351
111
60
196
0
2
166
2,723
1,522
(37)
42
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
32
28
0
0
0
0
0
(233)
(108)
(138)
0
0
0
0
(201)
(80)
(138)
0
0
0
2
(35)
2,643
1,384
(37)
42
0
13,126
84
5,789
15,533
147
692
352
13,128
49
8,432
16,917
110
734
352
(Continued)
111
CITY OF MOUNTAIN VIEW. CALIFORNIA
Non -Major Governmental Funds
Combining Statements of Revenues, Expenditures and
Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
112
DEBT SERVICE FUNDS
Shoreline
Shoreline
2001
Regional Park
Regional Park
Refunding
Special
Community
Community
COPS
Assessments
2001 TABS
2004 TABS
Revenues:
Taxes
0
0
0
0
Licenses, permits and fees
0
0
0
0
Use of money and property
0
16
0
0
Intergovernmental revenues
0
0
0
0
Charges for services
0
36
0
0
Other
0
0
0
0
Total revenues
0
52
0
0
Expenditures:
Current:
General government
0
0
0
0
Public safety
0
0
0
0
Community development
0
0
0
0
Culture and recreation
0
0
0
0
Capital outlay
0
0
0
0
Debt service:
Principal repayment
900
33
1,355
1,330
Interest and fiscal charges
113
17
321
470
Total expenditures
1,013
50
1,676
1,800
Excess (deficiency) of revenues
over (under) expenditures
(1,013)
2
(1,676)
(1,800)
Other financing sources (uses):
Gain on sale of property
0
0
0
0
Proceeds from debt issue
0
0
4,475
7,560
Payment to bond escrow
0
0
(4,475)
(7,560)
Transfers in
1,013
0
1,676
1,800
Transfers (out)
0
0
0
0
Total other financing sources (uses)
1,013
0
1,676
1,800
Net change in fund balances
0
2
0
0
Beginning fund balances
0
100
0
0
Ending fund balances
0
102
0
0
112
113
CAPITAL
DEBT SERVICE FUNDS
PROJECTS FUND
Shoreline
Shoreline
City Child
Total
Regional Park
Regional Park
Care Center
Storm
Nonmajor
Community
Community
Financing
Drain
Governmental
2011 Revenue Bonds
2014 Bank Loan
2008
Construction
Funds
0
0
0
0
6,578
0
0
0
0
339
4
0
0
9
394
0
0
0
0
4,265
0
0
0
0
5,588
0
0
0
81
484
4
0
0
90
17,648
0
0
0
0
429
0
0
0
0
171
0
0
0
0
352
0
0
0
0
2,322
0
0
0
0
24
1,495
0
183
0
5,296
1,873
82
19
0
2,895
3,368
82
202
0
11,489
(3,364)
(82)
(202)
90
6,159
0
0
0
0
0
0
100
0
0
12,135
0
0
0
0
(12,035)
3,353
0
202
31
9,083
0
0
0
(253)
(10,542)
3,353
100
202
(222)
(1,359)
(11)
18
0
(132)
4,800
3,013
0
0
791
54,667
3,002
18
0
659
59,467
113
IWKIIadk ln0r_1iealIWIAWSKI01D):iur_1
Budgeted Non -Major Funds
Combining Schedules of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Revenues:
Taxes
Licenses, permits and fees
Use of money and property
Intergovernmental
Charges for services
Other
Total revenues
Expenditures:
Current:
General government:
City manager
Finance and administrative services
Public safety:
Police
Community development
Culture and recreation:
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Sale of capital assets
Transfers in
Transfers (out)
Total other financing sources (uses)
Net change in fund balances
Beginning fund balances
Ending fund balances
0
0
0
0
Vehicle
0
47
Gas Tax
0
0
Registration Fee
0
0
0
Variance
0
0
Variance
0
0
Favorable
0
0
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
$ 0
0
0
0
0
0
0
0
0
0
0
0
57
18
(39)
3
4
1
1,874
2,391
517
400
441
41
0
0
0
0
0
0
0
0
0
0
0
0
1,931
2,409
478
403
445
42
0
0
0
0
0
0
47
47
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
47
47
0
0
0
0
1,884
2,362
478
403
445
42
0
0
0
0
0
0
0
155
155
0
5
5
(2,194)
(2,194)
0
(420)
(420)
0
(2,194)
(2,039)
155
(420)
(415)
5
$ (310)
323
633
(17)
30
47
2,128
420
$ 2,451
450
114
0
Construction
0
0
0
0
0
0
0
186
& Conveyance
0
0
Transit Oriented
0
Shoreline
0
0
Tax
0
0
Development
0
0
Golf Links
0
0
0
Variance
0
1
Variance
0
0
Variance
0
0
Favorable
0
0
Favorable
0
2,329
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
0
186
186
0
1
1
0
2,353
2,346
3,004
6,070
3,066
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
222
93
(129)
24
35
11
0
2
2
0
0
0
0
0
0
0
0
0
0
0
0
0
968
968
2,544
2,506
(38)
0
0
0
0
0
0
23
4
(19)
3,226
6,163
2,937
24
1,003
979
2,567
2,512
(55)
0
0
0
0
0
0
0
0
0
186
186
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1
1
0
0
0
0
0
0
0
0
0
0
2,329
2,322
7
0
0
0
0
0
0
24
24
0
186
186
0
1
1
0
2,353
2,346
7
3,040
5,977
2,937
23
1,002
979
214
166
(48)
0
0
0
0
0
0
0
0
0
0
781
781
0
7
7
32
32
0
(5,679)
(5,678)
1
(525)
(1,518)
(993)
(388)
(233)
155
(5,679)
(4,897)
782
(525)
(1,511)
(986)
(356)
(201)
155
(2,639)
1,080
3,719
(502)
(509)
(7)
(142)
(35)
107
9,245
3,247
84
10,325
2,738
49
(Continued)
115
IWK61adk ln0r_1iealIWI.W.7-11010):lur_1
Budgeted Non -Major Funds
Combining Schedules of Revenues, Expenditures and
Changes in Fund Balances - Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
116
Downtown Benefit
Assessment District
Grants
Variance
Variance
Favorable
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
Revenues:
Taxes
208
508
300
0
0
0
Licenses, permits and fees
154
339
185
0
0
0
Use of money and property
96
146
50
3
65
62
Intergovernmental
3
3
0
820
1,407
587
Charges for services
203
2,078
1,875
0
0
0
Other
0
0
0
50
161
111
Total revenues
664
3,074
2,410
873
1,633
760
Expenditures:
Current:
General government:
City manager
0
0
0
0
0
0
Finance and administrative services
0
0
0
0
0
0
Public safety:
Police
0
0
0
111
111
0
Community development
429
351
78
2,546
0
2,546
Culture and recreation:
Community services
0
0
0
0
0
0
Capital outlay
0
0
0
0
0
0
Total expenditures
429
351
78
2,657
111
2,546
Excess (deficiency) of revenues
over (under) expenditures
235
2,723
2,488
(1,784)
1,522
3,306
Other financing sources (uses):
Sale of capital assets
0
0
0
0
0
0
Transfers in
0
28
28
0
0
0
Transfers (out)
(108)
(108)
0
(138)
(138)
0
Total other financing sources (uses)
(108)
(80)
28
(138)
(138)
0
Net change in fund balances
127
2,643
2,516
(1,922)
1,384
3,306
Beginning fund balances
5,789
15,533
Ending fund balances
8,432
16,917
116
Cable Storm Drain
Television Construction
270
196
Variance
0
0
Variance
0
0
Favorable
0
0
Favorable
Budget
Actual
(Unfavorable)
Budget
Actual
(Unfavorable)
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
12
9
(3)
0
0
0
0
0
0
0
0
0
0
0
0
232
238
6
10
81
71
232
238
6
22
90
68
270
196
74
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
270
196
74
0
0
0
(38)
42
80
22
90
68
0
0
0
0
0
0
0
0
0
0
31
31
0
0
0
(253)
(253)
0
0
0
0
(253)
(222)
31
(38)
42
80
(231)
(132)
99
692
791
734
659
117
This Page Left Intentionally Blank
INTERNAL SERVICE FUNDS
The Equipment Maintenance and Replacement Fund accounts for equipment
maintenance services provided to other funds and the replacement of certain equipment.
The Workers' Compensation Insurance Fund accounts for the City's self - insurance
program for Workers' Compensation benefits and for the administration of safety and loss
prevention programs.
The Unemployment Self- Insurance Fund accounts for State and Federal- mandated
unemployment insurance benefits for employees.
The Liability Self- Insurance Fund accounts for the City's general liability self - insurance
and property insurance programs.
The Retirees' Health Plan Fund accounts for the health plan expenses incurred for
retirees of the City and the funds set aside for future retirees' benefits.
The Employee Benefits Plan Fund accounts for the City's self - insurance vision and other
benefits for City employees.
119
CITY OF MOUNTAIN VIEW, CALIFORNIA
Internal Service Funds
Combining Statements of Net Position
June 30, 2014 (Dollars in Thousands)
Asset:
Current assets:
Cash and investments
Restricted cash and investments
Receivables:
Interest
Deposits and prepaid costs
Total current assets
Noncurrent assets:
Machinery and equipment
Accumulated depreciation
Total noncurrent assets
Total assets
Liabilities:
Current liabilities:
Accounts payable and accrued costs
Accrued compensated absences
Accrued self - insurance costs
Total current liabilities
Noncurrent liabilities:
(due in more than one year):
Accrued compensated absences
Accrued self - insurance costs
Total liabilities
Net position:
Invested in capital assets
Unrestricted
Total net position
Equipment
Workers'
Maintenance &
Compensation
Unemployment
Replacement
Insurance
Self- Insurance
$ 23,786
7,665
264
0
30
0
89
28
1
0
0
0
23,875
7,723
265
267
0
0
(218)
0
0
49
0
0
23,924
7,723
265
222 0 0
30 0 0
0 1,902 0
252 1,902 0
181 0 0
0 5,680 0
433 7,582 0
49 0 0
23,442 141 265
$ 23,491 141 265
120
Liability
Retirees'
Employee
Self- Insurance
Health Plan
Benefits Plan
Total
3,985
342
360
36,402
1,540
0
0
1,570
15
4
1
138
0
3
0
3
5,540
349
361
38,113
0
0
0
267
0
0
0
(218
0
0
0
49
5,540
349
361
38,162
5
0
1,375
1,380
0
523
1,903
0
3,637
3,637
3 1 231
0 0 30
0 0 3,277
3 1 3,538
0 0 181
0 0 6,203
3 1 9,922
0 0 49
346 360 28,191
346 360 28,240
121
CITY OF MOUNTAIN VIEW. CALIFORNIA
Internal Service Funds
Combining Statements of Revenues, Expenses and
Changes in Fund Net Position
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
122
Equipment
Workers'
Maintenance &
Compensation
Unemployment
Replacement
Insurance
Self- Insurance
Operating revenues:
Charges for services
$ 2,125
1,593
162
Other
90
66
0
Total operating revenues
2,215
1,659
162
Operating expenses:
Salaries and related expenses
1,050
0
0
Self- funded insurance
0
2,276
71
General and administrative
2,585
145
2
Depreciation
21
0
0
Total operating expenses
3,656
2,421
73
Operating income (loss)
(1,441)
(762)
89
Nonoperating revenues (expenses):
Interest income
303
91
3
Net nonoperating revenues
303
91
3
Income (loss) before transfers
(1,138)
(671)
92
Transfers:
Transfers in
3,125
1,988
0
Transfers out
(62)
0
0
Net transfers
3,063
1,988
0
Change in net position
1,925
1,317
92
Beginning net position
21,566
(1,176)
173
Ending net position
$ 23,491
141
265
122
Liability
Retirees'
Employee
Self - Insurance
Health Plan
Benefits Plan
Total
1,386
3,831
52
9,149
28
15
0
199
1,414
3,846
52
9,348
0
0
0
1,050
495
0
0
2,842
129
3,912
70
6,843
0
0
0
21
624
3,912
70
10,756
790
(66)
(18)
(1,408)
48
10
5
460
48
10
5
460
838
(56)
(13)
(948)
0
51
0
5,164
0
0
0
(62)
0
51
0
5,102
838
(5)
(13)
4,154
2,799
351
373
24,086
3,637
346
360
28,240
123
CITY OF MOUNTAIN VIEW, CALIFORNIA
Internal Service Funds
Combining Statement of Cash Flows
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Cash flows from operating activities:
Receipts from customers
Payments to suppliers
Payments to or on behalf of employees
Claims paid
Net cash provided (used) by operating activities
Cash flows from non - capital financing activities:
Transfers in
Transfers out
Net cash provided (used) by noncapital
financing activities
Cash from investing activities:
Interest received
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
Reconciliation of operating income (loss) to net cash
provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities:
Depreciation
Change in assets and liabilities:
Accounts and other payables
Deposits and prepaid costs
Net cash provided (used) by operating activities
Equipment
Workers'
Maintenance &
Compensation
Unemployment
Replacement
Insurance
Self- Insurance
$ 2,215
1,659
162
(2,526)
(145)
(2)
(1,040)
0
0
0
(1,487)
(71)
(1,351)
27
89
3,125
1,988
0
(62)
0
0
3,063
1,988
0
302
85
3
2,014
2,100
92
21,772
5,595
172
$ 23.786
7,695
264
$ (1,441)
(762)
89
21
0
0
69
789
0
0
0
0
$ (1,351)
27
89
124
Liability
Retirees'
Employee
Self- Insurance
Health Plan
Benefits Plan
Total
1,414
3,846
52
9,348
(138)
(3)
(69)
(2,883)
0
(3,911)
0
(4,951)
(495)
0
0
(2,053)
781
(68)
(17)
(539)
0
51
0
5,164
0
0
0
(62)
0
51
0
5,102
47
16
5
458
828
(1)
(12)
5,021
4,697
343
372
32,951
5,525
342
360
37 972
790
(66)
(18)
(1,408)
0
0
0
21
(9)
1
1
851
0
(3)
0
(3 )
781
___L6 81
(17)
(539)
125
This Page Left Intentionally Blank
AGENCY FUNDS
The Payroll Agency Fund accounts for payroll- related liabilities.
The Center for the Performing Arts Agency Fund accounts for money received by the
Center for the Performing Arts.
The Fire Union Agency Fund accounts for money received on behalf of the Fire Union
used for union activities.
The Police Union Agency Fund accounts for money received on behalf of the Police
Union used for union activities.
The Flexible Benefits Plan Agency Fund accounts for the assets and liabilities of the
employer's flexible benefits plan established under Internal Revenue Code Section 125.
The Education Enhancement JPA Agency Fund accounts for funds to be used by the
joint powers authority to enhance the educational and technology capacity of students in
Mountain View schools.
The Unearned Land Lease Rent Agency Fund accounts for the prepaid rent received on
behalf of Google Inc. per the lease agreement between Google Inc. and the City.
127
CITY OF MOUNTAIN VIEW, CALIFORNIA
Agency Funds
Combining Statements of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Pavroll
Assets:
Cash and investments
Liabilities:
Accrued payroll
Center For The Performing Arts
Assets:
Restricted cash and investments
Liabilities:
Collections payable
Fire Union
Assets:
Balance Balance
June 30, 2013 Additions Deductions June 30, 2014
$
1,998
98,854
99,049
1,803
$
1,998
114,698
114,893
1,803
$
126
1
0
127
25
Liabilities:
$
126
1
0
127
Cash and investments
$
0
37
12
25
Liabilities:
Collections payable
$
0
37
12
25
Police Union
Assets:
Cash and investments
$
8
24
17
15
Liabilities:
Collections payable
$
8
24
17
15
128
Flexible Benefits Plan
Assets:
Restricted cash and investments
Liabilities:
Collections payable
Education Enhancement JPA
Assets:
Cash and investments
Liabilities:
Collections payable
Unearned Land Lease Rent
Assets:
Cash and investments
Liabilities:
Unearned revenue
All Aaencv Funds
Assets:
Cash and investments
Restricted cash and investments
Total assets
Liabilities:
Accrued payroll
Collections payable
Unearned revenue
Total liabilities
Balance Balance
June 30, 2013 Additions Deductions June 30, 2014
$ 84 27 0 111
$ 84
27 0 111
$ 344
4,715
5,059
105,094
$ 344
5,058
5,402
0
0
$ 28,825 377 957 28,245
$ 28,825 0 580 28,245
$
31,175
104,007
105,094
30,088
210
28
0
238
$
31,385
104,035
105,094
30,326
$
1,998
114,698
114,893
1,803
562
5,147
5,431
278
28,825
0
580
28,245
$
31,385
119,845
120,904
30,326
129
This Page Left Intentionally Blank
STATISTICAL SECTION
This section of the City of Mountain View's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the financial
statements, note disclosures and required supplementary information says about the City's
overall financial health.
Financial Trend schedules contain information to help the reader Schedule 1 -4
understand how the City's financial performance and well -being have
changed over time.
Revenue Capacity schedules contain information to help the reader assess Schedule 5 -8
the City's most significant local revenue source, the property tax.
Debt Capacity schedules present information to help the reader assess the Schedule 9 -13
affordability of the City's current levels of outstanding debt and the City's
ability to issue additional debt in the future.
Demographic and Economic Information schedules offer demographic Schedule 14 -15
and economic indicators to help the reader understand the environment
within which the City's financial activities take place.
Operating Information schedules contain service and infrastructure data to Schedule 16 -18
help the reader understand how the information in the City's financial report
relates to the services the City provides and the activities it performs.
131
Schedule 1
CITY OF MOUNTAIN VIEW, CALIFORNIA
Net Assets /Position by Component
Last Ten Fiscal Years
(Accrual basis of accounting)
(Dollars in Thousands)
Governmental activities
Net investment in capital assets
Restricted
Unrestricted
Total governmental activities net assets /position
Business -type activities
Net investment in capital assets
Restricted
Unrestricted
Total business -type activities net assets /position
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net assets /position
Fiscal Year Ended June 30,
2004 2005 2006 2007
$424,112
420,376
423,152
440,910
57,321
54,815
51,216
67,454
140,475
157,573
166,437
159,556
$621,908
632,764
640,805
667,920
$ 42,728
49,933
53,334
58,491
216
216
0
0
49,477
43,718
40,998
35,029
$ 92,421
93,867
94,332
93,520
$466,840
470,309
476,486
499,401
57,537
55,031
51,216
67,454
189,952
201,291
207,435
194,585
$714,329
726,631
735,137
761,440
* Effective with FY2013, the City implemented GASB 63 and is reporting Net Position in its financial statements
132
Schedule 1
1,000,000
900,000
800,000
700,000
600,000
°0 500,000
0
400,000
300,000
200,000
100,000
CITY OF MOUNTAIN VIEW, CALIFORNIA
Net Assets /Position by Component
Primary Government
®Net investment in capital assets ®Restricted OUnrestticted
Fiscal Year Ended June 30,
2008 2009 2010 2011 2012 2013 2014
451,123
458,072
464,498
464,111
440,921
433,059
456,410
75,918
74,391
88,252
92,781
105,365
148,253
171,881
167,625
169,023
148,139
141,891
145,497
134,551
150,095
694,666
701,486
700,889
698,783
691,783
715,863
778,386
60,569
61,307
76,592
74,436
79,412
83,040
82,850
0
0
0
0
0
0
0
34,997
37,865
38,691
47,420
45,032
41,971
47,867
95,566
99,172
115,283
121,856
124,444
125,011
130,717
511,692
519,379
541,090
538,547
520,333
516,099
539,260
75,918
74,391
88,252
92,781
105,365
148,253
171,881
202,622
206,888
186,830
189,311
190,529
176,522
197,962
790,232
800,658
816,172
820,639
816,227
840,874
909,103
133
Schedule 2
CITY OF MOUNTAIN VIEW, CALIFORNIA
Expenses
Governmental activities
General government
Public safety
Public works
Community development
Culture and recreation
Interest on long term debt
Total governmental activities expenses
Business -type activities
Water
Wastewater
Solid Waste
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services:
General government
Public safety
Public works
Community development
Culture and recreation
Operating grants and contributions
Capital grants and contributions
Total government activities program revenues
Business -type activities
Charges for services:
Water
Wastewater
Solid Waste
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Net (Expense) Revenue
Governmental activities
Business -type activities
Total primary government net expense
Changes in Net Assets /Position
Last Ten Fiscal Years
(Accrual basis of accounting)
(Dollars in Thousands)
Fiscal Year Ended June 30,
2005 2006 2007 2008
$ 18,383
25,228
27,247
25,753
36,202
38,803
40,293
43,610
14,185
22,227
14,419
15,593
5,720
6,350
7,162
8,216
25,873
27,834
29,515
31,067
4,336
4,124
3,741
3,913
104,699
124,566
122,377
128,152
13,753
14,369
16,298
16,727
10,836
11,884
12,660
12,546
7,742
8,776
8,802
11,235
32,331
35,029
37,760
40,508
$137,030
159,595
160,137
168,660
$ 16,860
27,413
19,833
19,340
996
987
1,225
1,349
456
772
970
4,565
4,626
6,389
8,260
5,313
4,798
5,767
5,805
5,278
9,322
3,617
3,872
5,268
9,708
14,120
10,541
11,305
46,766
59,065
50,506
52,418
14,046
14,153
17,895
19,102
10,553
11,440
12,540
14,346
7,331
8,174
8,650
8,665
0
0
0
0
189
260
563
0
32,119
34,027
39,648
42,113
$ 78,885
93,092
90,154
94,531
$ (57,933)
(65,501)
(71,871)
(75,734)
(212)
(1,002)
1,888
1,605
$(58,145)
(66,503)
(69,983)
(74,129)
*Effective with EY2013, the City implemented GASB 63 and is reporting Net Position in its financial statements.
134
Schedule 2
Fiscal Year Ended June 30,
2009 2010 2011 2012 2013 2014
24,787
27,689
29,967
30,983
31,825
32,517
47,990
51,909
46,782
51,302
50,818
51,719
17,857
20,565
17,489
16,487
26,967
13,264
8,819
10,878
9,378
10,611
8,134
15,013
31,590
32,525
32,070
31,403
29,703
30,623
3,537
3,327
3,097
3,459
3,368
2,998
134,580
146,893
138,783
144,245
150,815
146,134
17,069
18,923
20,269
23,812
26,199
24,168
13,440
11,141
10,822
13,413
14,167
13,962
8,638
10,085
9,557
9,963
10,989
12,124
39,147
40,149
40,648
47,188
51,355
50,254
173,727
187,042
179,431
191,433
202,170
196,388
22,556
23,161
21,275
22,893
25,966
24,584
1,235
1,382
1,418
1,436
1,952
1,988
3,565
3,225
3,423
4,777
10,753
10,276
3,609
4,299
5,479
8,409
13,117
14,483
4,984
4,868
4,913
4,868
4,631
5,023
3,815
4,639
5,109
4,147
4,643
4,507
4,350
4,864
5,879
12,806
20,293
21,859
44,114
46,438
47,496
59,336
81,355
82,720
19,291
18,408
19,775
23,183
25,823
28,887
14,472
14,302
14,039
13,296
14,558
15,367
8,736
9,245
9,884
11,048
11,445
11,864
0
0
0
0
0
0
0
13,003
3,296
2,078
776
187
42,499
54,958
46,994
49,605
52,602
56,305
86,613
101,396
94,490
108,941
133,957
139,025
(90,466)
(100,455)
(91,287)
(84,909)
(69,460)
(63,414)
3,352
14,809
6,346
2,417
1,247
6,051
(87,114)
(85,646)
(84,941)
(82,492)
(68,213)
(57,363)
135
Schedule 2
CITY OF MOUNTAIN VIEW, CALIFORNIA
Changes in Net Assets /Position
Last Ten Fiscal Years
(Accrual basis of accounting)
(Dollars in Thousands)
Fiscal Year Ended June 30,
2005 2006 2007 2008
General Revenues and Other Changes in Net Assets /Position
8,041
27,115
26,746
Governmental activities
465
(812)
2,046
12,302
Taxes:
26,303
28,792
0
Property taxes
$ 33,270
39,864
49,979
52,352
Sales taxes
14,852
16,020
17,223
17,274
Intergovernmental revenue
5,868
432
480
313
Transient occupancy tax
2,583
3,177
3,936
4,299
Utility users tax
4,572
4,564
5,199
5,812
Nonregulatory franchise and business
3,904
4,156
3,896
3,967
Interest earnings
4,486
5,594
14,529
17,667
Other
0
0
0
52
Transfers
(746)
(265)
3,744
744
Total government activities
68,789
73,542
98,986
102,480
Business -type activities
Interest earnings
912
1,202
1,044
1,185
Transfers, net
746
265
(3,744)
(744)
Total business -type activities
1,658
1,467
(2,700)
441
Total primary government
$ 70,447
75,009
96,286
102,921
Change in Net Assets /Position
Change in net assets /position before extraordinary
and special items:
Governmental activities
Business -type activities
Total primary government
Extraordinary items:
Assets transferred to /liabilities assumed by
Successor Agency, net of LAIE rate remeasurement
Special items:
Capital assets contributed from Successor Agency
Land held contributed from Successor Agency
Change in net assets
$ 10,856
8,041
27,115
26,746
1,446
465
(812)
2,046
12,302
8,506
26,303
28,792
0
0
0
0
0
0
0
0
$ 12,302
8,506
26,303
28,792
*Effective with EY2013, the City implemented GASB 63 and is reporting Net Position in its financial statements.
136
Schedule 2
Fiscal Year Ended June 30,
2009 2010 2011 2012 2013 2014
53,264
60,311
54,749
57,709
58,515
62,601
16,264
15,242
15,501
15,939
16,744
16,935
213
231
243
194
222
209
3,155
3,267
3,914
4,397
4,668
5,595
5,866
5,651
5,711
6,157
7,954
7,335
3,974
3,845
4,084
4,204
4,241
4,633
13,716
9,801
4,784
6,363
966
3,870
8
0
0
0
0
1,091
826
1,510
195
355
510
739
97,286
99,858
89,181
95,318
93,820
103,008
1,080
930
422
526
22
394
(826)
(
(195)
(355)
(510)
(739)
254
(580)
227
171
(488)
(345)
97,540
99,278
89,408
95,489
93,332
102,663
6,820
(597)
(2,106)
10,409
24,360
39,594
3,606
14,229
6,573
2,588
759
5,706
10,426
13,632
4,467
12,997
25,119
45,300
0
0
0
1( 7,409)
0
0
16,679
0 0 0 0 0 6,250
10,426 13,632 4,467 (4,412) 25,119 68,229
137
Schedule 3
CITY OF MOUNTAIN VIEW, CALIFORNIA
Fund Balance, Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(Dollars in Thousands)
Fiscal Year Ended June 30,
2005 2006 2007 2008
General Fund
Nonspendable
$ 15,666
14,885
15,717
14,809
Committed
30,135
39,653
41,486
58,349
Assigned
1,933
2,460
1,677
1,927
Unassigned
49,087
54,453
53,369
31,573
Total General Fund
$ 96,821
111,451
112,249
106,658
All Other Governmental Funds
Nonspendable
$ 145
159
147
151
Restricted
131,782
116,242
118,813
135,101
Committed
1,861
1,832
1,832
1,695
Unassigned
0
0
0
0
Total all other governmental funds
$ 133,788
118,233
120,792
136,947
(1) The change in total fund balance for the General Fund and other governmental funds
is explained in Management's Discussion and Analysis.
138
Schedule 3
120,000
100,000
80,000
0
°0 60,000
40,000
20,000
CITY OF MOUNTAIN VIEW, CALIFORNIA
Fund Balance for General Fund
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
®Nonspendable ®Committed ®Assigned ®Unassigned
Fiscal Year Ended June 30,
2009 2010 2011 2012 2013 2014 (1)
14,221
10,415
7,233
7,147
5,828
3,276
54,601
46,201
43,651
44,609
42,626
47,771
1,649
1,828
1,548
1,648
1,222
1,498
30,452
30,055
30,950
31,882
35,150
36,880
100,923
88,499
83,382
85,286
84,826
89,425
148
664
694
47
76
67
138,279
140,215
141,867
159,532
191,843
218,699
1,287
647
0
0
0
0
0
0
(488)
0
0
(18)
139,714
141,526
142,073
159,579
191,919
218,748
139
Schedule 4
CITY OF MOUNTAIN VIEW, CALIFORNIA
Changes in Fund Balances, Governmental Funds
Last Ten Fiscal Years
(Modified accrual basis of accounting)
(Dollars in Thousands)
Revenues
Taxes
Licenses, permits and fees
Fines and forfeitures
Use of money and property
Intergovernmental revenues
Charges for services
Other
Total Revenues
Expenditures
Current:
General government
Public safety
Public works
Community development
Culture and recreation
Capital outlay
Debt service:
Principal repayment
Interest and fiscal charges
Total Expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other Financing Sources (Uses)
Sale of capital assets
Certificates of participation issued
Proceeds from debt issuance
Payment to refund bond escrow agent
Transfers in
Transfers (out)
Total other financing sources (uses)
Net Change in fund balances
before extraordinary items
Extrordinary Items:
Assets transferred to/liabilities assumed by
Successor Agency, net of LAIF rate remeasurement
Net Change in fund balances
Debt service as a percentage of
noncapital expenditures
Fiscal Year Ended June 30,
2005 2006 2007 2008
$ 59,942
71,222
82,318
83,997
6,822
12,258
10,202
9,366
614
580
775
876
11,969
10,475
18,753
24,146
10,360
4,720
5,305
7,367
17,030
19,817
22,558
22,567
9,012
13,554
3,359
1,771
115,749
132,626
143,270
150,090
16,520
23,226
24,314
23,469
34,275
36,665
38,791
41,252
6,642
7,117
7,726
8,382
5,113
6,229
6,666
7,541
17,485
18,449
19,996
21,354
10,202
31,781
28,728
28,900
5,110
4,889
5,088
4,748
3,950
3,863
3,633
3,627
99,297
132,219
134,942
139,273
16,452
407
8,328
10,817
200
0
0
52
0
0
0
2,800
0
0
0
0
0
0
0
0
31,889
38,075
28,904
48,332
(36,500)
(39,407)
(33,875)
(51,437)
(4,411)
(1,332)
(4,971)
(253)
12,041
(925)
3,357
10,564
0
0
0
0
$ 12,041
(925)
3,357
10,564
10.2%
8.8%
8.2%
7.6%
140
Schedule 4
Fiscal Year Ended June 30,
2009 2010 2011 2012 2013 2014
81,309
87,035
82,904
89,496
93,385
98,806
6,514
6,754
8,385
15,614
22,482
23,677
800
909
930
954
1,043
1,068
20,685
17,570
13,177
15,112
10,659
14,878
4,353
6,667
6,861
5,622
7,200
7,840
21,224
20,915
21,069
23,339
36,221
33,810
2,903
4,096
2,707
3,528
4,415
3,212
137,788
143,946
136,033
153,665
175,405
183,291
22,081
24,357
26,896
28,707
29,653
30,475
44,369
45,399
46,212
48,364
49,474
50,517
9,068
16,541
7,907
8,377
8,736
9,340
6,909
9,016
7,468
9,581
8,316
14,494
21,560
21,645
21,407
20,997
21,072
21,904
23,373
25,651
19,449
23,940
15,493
14,148
5,115
5,304
5,705
18,093
5,103
5,296
3,270
3,065
2,842
3,736
2,872
2,895
135,745
150,978
137,886
161,795
140,719
149,069
2,043 (7,032) (1,853) (8,130) 34,686 34,222
8
0
0
0
0
1,469
0
0
0
0
0
0
0
0
0
39,454
0
12,135
0
0
0
0
0
(12,035)
46,663
34,912
30,355
50,417
32,211
34,028
(51,682)
(38,492)
(33,072)
(53,032)
(35,017)
(38,391)
(5,011)
(3,580)
(2,717)
36,839
(2,806)
(2,794)
(2,968)
(10,612)
(4,570)
28,709
31,880
31,428
0
0
0
(9,299)
0
0
(2,968)
(10,612)
(4,570)
19,410
31,880
31,428
7.5%
6.9%
7.3%
16.0%
6.4%
6.2%
141
Schedule 5
Fiscal
Year
CITY OF MOUNTAIN VIEW, CALIFORNIA
Assessed Value of Taxable Property
Last Ten Fiscal Years
(Dollars in Thousands)
Real Property
Residential Commercial Industrial
Property Property Property Other
Unsecured
Less:
Tax - Exempt
Property
2004 -05
$ 6,360,376
1,416,793
1,725,553
480,157
1,497,043
(192,525)
2005 -06
6,956,715
1,529,248
1,733,185
442,493
1,480,980
(242,921)
2006 -07
7,542,836
1,627,386
2,054,691
639,081
1,656,266
(293,644)
2007 -08
8,110,176
1,777,751
2,440,922
698,104
1,606,465
(417,248)
2008 -09
8,712,439
1,941,558
2,698,312
752,376
1,552,055
(380,315)
2009 -10
9,124,313
2,129,060
2,720,914
802,565
1,908,232
(457,452)
2010 -11
9,173,517
2,422,019
2,563,850
385,864
1,688,517
(474,476)
2011 -12
9,441,237
2,632,290
2,479,217
372,374
1,852,725
(501,151)
2012 -13
9,844,690
2,737,949
2,498,708
384,514
2,400,336
(521,424)
2013 -14
10,803,722
3,029,020
2,586,574
358,677
2,527,347
(545,680)
Source: Santa Clara County Assessor
Note: Actual property value data not available in California.
(1) California cities do not set their own direct tax rate. The state constitution establishes the rate at 1%
and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax
rate area. The City of Mountain View encompasses more than 15 tax rate areas.
142
Schedule 5
0
0
0
20,000,000
18,000,000
16,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
CITY OF MOUNTAIN VIEW, CALIFORNIA
Total Taxable Assessed Value
2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14
Total Taxable
Assessed
Total Direct
Value
Tax Rate (1)
11,287,397
1%
11,899,700
1%
13,226,616
1%
14,216,170
1%
15,276,425
1%
16,227,632
1%
15,759,291
1%
16,276,693
1%
17,344,773
1%
18,759,660
1%
143
Schedule 6
CITY OF MOUNTAIN VIEW, CALIFORNIA
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(Rate per $100 of assessed value)
Source: County of Santa Clara
(1) Overlapping rates are those of local and county governments that apply to property owners within the
City of Mountain View. Not all overlapping rates apply to all Mountain View property owners. These
are voter approved levies in addition to the 1% State levy.
(2) The City's share of the basic state wide property tax rate can only be increased by a 2/3 vote
of the City's residents.
144
City Direct Rates
Overlapping
Rates (1)
Fiscal
Basic
Total
County of
Special
Year
Rate (2 )
Direct
Santa Clara
School Districts
Hospitals
Districts
2004 -05
1.00
1.00
0.0388 -
0.0412
0.0585 -
0.0809
0.0000 -
0.0000
0.0092
2005 -06
1.00
1.00
0.0388 -
0.0412
0.0676 -
0.0776
0.0000 -
0.0000
0.0078
2006 -07
1.00
1.00
0.0388 -
0.0412
0.0855 -
0.1066
0.0000 -
0.0129
0.0072
2007 -08
1.00
1.00
0.0388 -
0.0412
0.0584 -
0.0815
0.0000 -
0.0129
0.0071
2008 -09
1.00
1.00
0.0388 -
0.0412
0.0565 -
0.0801
0.0000 -
0.0129
0.0061
2009 -10
1.00
1.00
0.0510 -
0.0534
0.0757 -
0.1008
0.0000 -
0.0129
0.0074
2010 -11
1.00
1.00
0.0483 -
0.0507
0.0799 -
0.1081
0.0000 -
0.0129
0.0072
2011 -12
1.00
1.00
0.0388 -
0.0459
0.0747 -
0.1110
0.0000 -
0.0129
0.0064
2012 -13
1.00
1.00
0.0439 -
0.0463
0.1005 -
0.1149
0.0000 -
0.0129
0.0069
2013 -14
1.00
1.00
0.0423 -
0.0423
0.0941 -
0.1059
0.0000 -
0.0129
0.0070
Source: County of Santa Clara
(1) Overlapping rates are those of local and county governments that apply to property owners within the
City of Mountain View. Not all overlapping rates apply to all Mountain View property owners. These
are voter approved levies in addition to the 1% State levy.
(2) The City's share of the basic state wide property tax rate can only be increased by a 2/3 vote
of the City's residents.
144
Schedule 6
Total Direct
and Overlapping
1.1065 - 1.1313
1.1142 - 1.1266
1.1315 - 1.1679
1.1043 - 1.1427
1.1014- 1.1403
1.1341 - 1.1745
1.1354 - 1.1789
1.1199 1.1762
1.1513 1.1810
1.1434 1.1681
145
This Page Left Intentionally Blank
Schedule 7
CITY OF MOUNTAIN VIEW, CALIFORNIA
Principal Property Tax Payers
Current year and Nine Years Ago
(Dollars in thousands)
Taxpayer
Taxable
Assessed
Value
Google Inc.
$ 1,870,460
HCP Life Science REIT Inc.
331,389
Mission West Shoreline LLC
183,896
Richard T. Peery Trustee
134,762
Microsoft Corporation
130,595
P A Charleston Road LLC
103,487
Richard M & Beverly Salado Trustee
77,013
Intuit Inc
121,337
400 Castro Street Inc.
56,598
SIC - Mountain Bay Plaza
52,517
Alza Corporation
Rank
Legacy Partners, Inc.
1
BP Shoreline Technology Park LLC
Silicon Graphics Inc.
SL Investments III LLC
1.8%
Subtotal $ 3,062,054
2013 -14
2004 -05
Fiscal Year 2013 -2014 Total Net Assessed Valuation: $ 18,759,659,690
Fiscal Year 2004 -2005 Total Net Assessed Valuation: $ 11,287,396,840
Source: Santa Clara County Assessor Fiscal Year Combined Tax Rolls.
Ranking Based on taxes paid.
147
Percentage
Percentage
of Total City
of Total City
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Rank
Value
Value
Rank
Value
1
10.0%
2
1.8%
3
1.0%
84,630
7
0.8%
4
0.7%
158,499
5
1.4%
5
0.7%
139,931
3
1.2%
6
0.5%
89,242
6
0.8%
7
0.4%
8
0.6%
78,434
9
0.7%
9
0.3%
10
0.3%
203,524
1
1.8%
140,700
2
1.2%
103,500
4
0.9%
81,144
8
0.7%
50,771
10
0.5%
16.3%
1,130,375
10.0%
Fiscal Year 2013 -2014 Total Net Assessed Valuation: $ 18,759,659,690
Fiscal Year 2004 -2005 Total Net Assessed Valuation: $ 11,287,396,840
Source: Santa Clara County Assessor Fiscal Year Combined Tax Rolls.
Ranking Based on taxes paid.
147
Schedule 8
CITY OF MOUNTAIN VIEW, CALIFORNIA
Property Tax Levies and Collections
Last Ten Fiscal Years
(Dollars in Thousands)
Source: City of Mountain View
Fiscal Years prior to 2012 -13 have been restated to match schedule 2 which excludes Homeowner's
Property Tax Rebate (HOPTR) reimbursed by the State.
(1) Levies include real and personal property. Amount excludes Special Assessments and the
penalties and fees on delinquent Special Assessments.
(2) The City selected to participate in the "Teeter" plan offered by the County whereby
cities receive 100% of the taxes levied in exchange for foregoing any interest and penalties
collected on delinquent taxes. The "Teeter" plan does not apply to Special Assessment Districts.
(3) The City was assessed two years Educational Revenue Augmentation Fund (ERAF) III payments
by the State. The ERAF payments for the General Fund and Shoreline Regional Park Community
Fund were deducted from the property tax remittance. The Revitalization Authority Fund issued
payments to the State for its share of ERAF III.
148
Percent
Delinquent
Fiscal
Taxes
Current
of Levy
Tax
Year
Levied (1)
Collections (2)
ERAF III (3)
Collected
Collections
2004 -05
$ 36,513
33,270
3,243
100.00%
0
2005 -06
43,106
39,864
3,243
100.00%
0
2006 -07
49,979
49,979
0
100.00%
0
2007 -08
52,352
52,352
0
100.00%
0
2008 -09
53,264
53,264
0
100.00%
0
2009 -10
60,311
60,311
0
100.00%
0
2010 -11
54,749
54,749
0
100.00%
0
2011 -12
57,709
57,709
0
100.00%
0
2012 -13
58,515
58,515
0
100.00%
0
2013 -14
62,601
62,601
0
100.00%
0
Source: City of Mountain View
Fiscal Years prior to 2012 -13 have been restated to match schedule 2 which excludes Homeowner's
Property Tax Rebate (HOPTR) reimbursed by the State.
(1) Levies include real and personal property. Amount excludes Special Assessments and the
penalties and fees on delinquent Special Assessments.
(2) The City selected to participate in the "Teeter" plan offered by the County whereby
cities receive 100% of the taxes levied in exchange for foregoing any interest and penalties
collected on delinquent taxes. The "Teeter" plan does not apply to Special Assessment Districts.
(3) The City was assessed two years Educational Revenue Augmentation Fund (ERAF) III payments
by the State. The ERAF payments for the General Fund and Shoreline Regional Park Community
Fund were deducted from the property tax remittance. The Revitalization Authority Fund issued
payments to the State for its share of ERAF III.
148
Schedule 8
Total
Taxes Percent
Collected of Levy
36,513
100.00%
43,106
100.00%
49,979
100.00%
52,352
100.00%
53,264
100.00%
60,311
100.00%
54,749
100.00%
57,709
100.00%
58,515
100.00%
62,601
100.00%
149
Schedule 9
CITY OF MOUNTAIN VIEW, CALIFORNIA
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
(Dollars in Thousands)
Note: Debt amounts exclude any premiums, discounts or other amortization amounts
(1) See Schedule 14 (Demographic Statistics) for personal income and population data.
(2) In Fiscal Year 2011 -12, the Revitalization Authority was dissolved and its assets transferred/liabilities
assumed by the Successor Agency.
(3) Includes City of Palo Alto Loan. See Footnote #7 for additional information.
(4) Beginning in Fiscal Year 2012 -13, Business -Type activities amount includes premiums and discounts.
150
Business -Type
Governmental Activities
Activities
Tax
Certificates
Special
Total
Fiscal
Allocation
of
Bank
Assessment
Water
Primary
Year
Bonds
Participation
Loan
Debt
Bonds (3)
Government
2004 -05
$ 57,154
25,010
0
1,451
9,335
92,950
2005 -06
54,140
23,625
0
961
9,085
87,811
2006 -07
51,017
22,190
0
431
8,830
82,468
2007 -08
47,779
22,348
0
411
8,565
79,103
2008 -09
44,414
21,776
0
385
14,295
80,870
2009 -10
40,917
19,995
0
359
13,715
74,986
2010 -11
37,275
17,958
0
333
13,125
68,691
2011 -12
56,330
(2) 5,779 (2)
0
306
12,525
74,940
2012 -13
52,300
4,738
0
274
11,115 (4)
68,427
2013 -14
36,085
3,655
12,135
241
10,540
62,656
Sources:
City of Mountain
View
State of California,
Department of Finance
(population)
U.S. Department of commerce, Bureau of the Census (income)
Note: Debt amounts exclude any premiums, discounts or other amortization amounts
(1) See Schedule 14 (Demographic Statistics) for personal income and population data.
(2) In Fiscal Year 2011 -12, the Revitalization Authority was dissolved and its assets transferred/liabilities
assumed by the Successor Agency.
(3) Includes City of Palo Alto Loan. See Footnote #7 for additional information.
(4) Beginning in Fiscal Year 2012 -13, Business -Type activities amount includes premiums and discounts.
150
Schedule 9
100,000
90,000
80,000
70,000
60,000
0
°0 50,000
40,000
30,000
20,000
10,000
0
CITY OF MOUNTAIN VIEW, CALIFORNIA
Outstanding Debt by Activity Type
2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2011 -12
®Total Government ®Total Business
Percentage
of Personal Per
Income (1) Capita (1)
2.64%
1.24
2.63%
1.29
2.39%
1.22
2.01%
1.13
1.78%
1.07
1.83%
1.08
1.77%
1.01
1.58%
0.92
1.61%
1.00
n/a
0.91
151
Schedule 10
CITY OF MOUNTAIN VIEW, CALIFORNIA
Ratio of General Bonded Debt Outstanding
Last Ten Fiscal Years
(Dollars in Thousands)
152
General Bonded Debt Outstanding
Percentage of
Tax
Actual Taxable
Fiscal
Allocation
Value of
Per
Year
Bonds
Total
Property
Capita
2004 -05
$ 57,154
57,154
0.51%
0.79
2005 -06
54,140
54,140
0.45%
0.75
2006 -07
51,017
51,017
0.39%
0.70
2007 -08
47,779
47,779
0.34%
0.65
2008 -09
44,414
44,414
0.29%
0.59
2009 -10
40,917
40,917
0.25%
0.55
2010 -11
37,275
37,275
0.24%
0.50
2011 -12
56,330
56,330
0.35%
0.75
2012 -13
52,300
52,300
0.32%
0.69
2013 -14
36,085
36,085
0.19%
0.47
152
Schedule 11
CITY OF MOUNTAIN VIEW, CALIFORNIA
Direct and Overlapping Governmental Activities Debt
As of June 30, 2014
2013 -14 Assessed Valuation: $18,759,659,690
GROSS COMBINED TOTAL DEBT $466,559,771 (2)
NET COMBINED TOTAL DEBT $436,635,945
(1) The percentage of overlapping debt applicable to the city is estimated rising taxable assessed property value. Applicable percentages were
estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the
district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non - bonded capital lease obligations.
Ratios to 2013 -14 Assessed Valuation:
Total Debt
Total Overlapping Tax and Assessment Debt ............... ..........................1.77%
City's Share of
OVERLAPPING TAX AND ASSESSMENT DEBT:
6/30/14
% Applicable (1)
Debt 6/30/14
Santa Clara County
$805,700,000
5.609%
$ 45,135,623
Foothill - DeAnza Community College District
613,179,288
16.549
101,475,040
Fremont Union High School District
290,570,108
0.395
1,147,752
Mountain View -Los Altos Union High School District
65,436,599
54.907
35,929,273
Los Altos School District
76,158,560
13.282
10,115,380
Mountain View School District
21,989,363
93.638
20,590,400
Sunnyvale School District
130,814,650
0.998
1,305,530
Mountain View - Whisman School District
46,000,000
95.284
43,830,640
Whisman School District
23,045,269
97.858
22,551,639
El Camino Hospital District
140,010,000
31.560
44,187,156
City of Mountain View 1915 Act Bonds
241,830
100.000
241,830
Santa Clara Valley Water District Benefit Assessment District
115,045,000
5.609
6,452,874
TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT
$332,963,137
DIRECT AND OVERLAPPING GENERAL FUND DEBT:
Santa Clara County General Fund Obligations
$757,814,320
5.609%
$42,505,805
Santa Clara County Pension Obligation Bonds
375,419,144
5.609
21,057,260
Santa Clara County Board of Education Certificates of Participation
9,730,000
5.609
545,756
Foothill- DeAnza Community College District Certificates of Participation
13,468,694
16.549
2,228,934
Mountain View -Los Altos Union High School District Certificates of Participation
4,170,000
54.907
2,289,622
City of Mountain View General Fund Obligations
1,925,000
100.000
1,925,000
City of Mountain View Loan Agreement
1,729,876
100.000
1,729,876
Midpeninsula Regional Park District General Fund Obligations
133,209,717
9.692
12,910,686
Santa Clara County Vector Control District Certificates of Participation
3,275,000
5.609
183,695
TOTAL GROSS DIRECT AND OVERLAPPING GENERAL FUND DEBT
$85,376,634
Less: Santa Clara County supported obligations
29,923,826
TOTAL NET DIRECT AND OVERLAPPING GENERAL FUND DEBT
$55,452,808
OVERLAPPING TAX INCREMENT DEBT:
Mountain View Shoreline Park Community Tax Allocation Bonds
$36,085,000
100.000%
$36,085,000
Mountain View Shoreline Park Community Loan Agreement
12,135,000
100.000
12,135,000
TOTAL OVERLAPPING TAX INCREMENT DEBT
$48,220,000
TOTAL DIRECT DEBT
$3,654,876
TOTAL GROSS OVERLAPPING DEBT
$462,904,895
TOTAL NET OVERLAPPING DEBT
$432,981,069
GROSS COMBINED TOTAL DEBT $466,559,771 (2)
NET COMBINED TOTAL DEBT $436,635,945
(1) The percentage of overlapping debt applicable to the city is estimated rising taxable assessed property value. Applicable percentages were
estimated by determining the portion of the overlapping district's assessed value that is within the boundaries of the city divided by the
district's total taxable assessed value.
(2) Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue bonds and non - bonded capital lease obligations.
Ratios to 2013 -14 Assessed Valuation:
Total Overlapping Tax and Assessment Debt ............... ..........................1.77%
Total Direct Debt ($3, 654, 876) .... ............................... ..........................0.02%
Gross Combined Total Debt ........... ............................... ..........................2.49%
Net Combined Total Debt ......................................... ...............................
2.33%
Ratios to Incremental Valuation ($3,512,489,048):
Total Overlapping Tax Increment Debt ......................... ..........................1.37%
Source: California Municipal Statistics, Inc.
153
Schedule 12
CITY OF MOUNTAIN VIEW, CALIFORNIA
Legal Debt Margin Information
Last Ten Fiscal Years
(Dollars in Thousands)
Debt limit
Total net debt applicable to limit
Legal debt margin
Total net debt applicable to the limit
Fiscal Year
2004 -05 2005 -06 2006 -07 2007 -08
$ 1,403,972 1,481,191 1,610,172 1,739,259
0
0
0
0
$ 1,403,972
1,481,191
1,610,172
1,739,259
as a percentage of debt limit 0.0% 0.0% 0.0% 0.0%
(1) Source: California Municipal Statistics, Inc., excluding tax allocation increment.
(2) The legal debt margin for the City of Mountain View, California, is calculated using a debt
limit of 15 percent of the assessed value of property within the City limits.
154
Schedule 12
Legal Debt Margin Calculation for Fiscal Year 2013 -14
Assessed value (net) - June 30, 2014 (1) $ 18,759,660
Debt limit: 15% of assessed value 2,813,949
Less total bonded debt, general obligation 0
Legal debt margin (2) $ 2,813,949
Fiscal Year
2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14
1,913,541 1,970,420 1,947,008 1,982,930 2,601,716 2,813,949
0 0 0 0 0 0
1,913,541 1,970,420 1,947,008 1,982,930 2,601,716 2,813,949
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
155
Schedule 13
Fiscal
Year
°o
0
CITY OF MOUNTAIN VIEW, CALIFORNIA
Bonded Debt Pledged- Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Water Revenue Bonds
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
Less:
Gross Operating
Revenues Costs
Water Revenue Bonds
Net
Available Debt Service
Revenues Principal
2004 -05
OCb
12,602
1,907
365
2005 -06
1K
14,971
12,549
2,422
ti��o till~ ti�lV ti���
2006 -07
®Revenue
®Debt Service
4,043
Less:
Gross Operating
Revenues Costs
Water Revenue Bonds
Net
Available Debt Service
Revenues Principal
2004 -05
$ 14,509
12,602
1,907
365
2005 -06
14,971
12,549
2,422
250
2006 -07
18,205
14,162
4,043
255
2007 -08
19,505
14,699
4,806
265
2008 -09
19,778
14,647
5,131
270
2009 -10
19,183
15,912
3,271
280
2010 -11
20,269
16,799
3,470
290
2011 -12
23,608
19,938
3,670
300
2012 -13
29,060
22,322
6,738
310
2013 -14
29,183
21,505
7,678
325
Interest
294
390
382
375
367
359
349
339
316
304
Coverage
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Gross revenues include non - operating interest earnings and transfers in. Operating costs
do not include interest expense, depreciation or amortizations. Interest also includes fiscal
charges and other related costs.
156
2.9
3.8
6.3
7.5
8.1
5.1
5.4
5.7
10.8
12.2
Schedule 13
CITY OF MOUNTAIN VIEW, CALIFORNIA
Bonded Debt Pledged- Revenue Coverage
Last Ten Fiscal Years
(Dollars in Thousands)
Special Assessment Bonds
$700
$600
$500
c $400
0
0
$300
$200
$100
$0 ; 111111111111111111111111111
111111111111 ®IIIIIIIIIIIII
Illlllllllllllllllllllllli 111111111111111111111111111
I 111111111111 ®IIIIIIII11111
I 11111111111111111111111111 I 111111111111 ®IIIIIIII11111
I 111111111111 ®IIIIIIII1111 I 111111111111111
o`'
O�
01 og
oq
N ��
�y
Year
Collections (1)
Principal Interest
Coverage
2004 -05
$ 590
449 128
1.0
2005 -06
596
490 90
1.0
2006 -07
47
®Revenue
0.1
®Debt Service
52
20 27
k
ti
Note: Current fiscal year debt service is paid from prior year collections.
(1) Collections includes interest payments from property owners.
157
Special Assessment Bonds
Special
Fiscal
Assessment
Debt Service
Year
Collections (1)
Principal Interest
Coverage
2004 -05
$ 590
449 128
1.0
2005 -06
596
490 90
1.0
2006 -07
47
530 50
0.1
2007 -08
52
20 27
1.1
2008 -09
51
26 26
1.0
2009 -10
49
26 24
1.0
2010 -11
48
26 22
1.0
2011 -12
52
27 21
1.1
2012 -13
50
32 19
1.0
2013 -14
52
33 17
1.0
Note: Current fiscal year debt service is paid from prior year collections.
(1) Collections includes interest payments from property owners.
157
Schedule 13
0
0
0
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
Last Ten Fiscal Years
(Dollars in Thousands)
Tax Allocation Bonds - Shoreline Regional Park Community
Z, Ob 0� ZOO OO) 11O
"Cr �ZZ �0�0 �ZNN
■Revenue ®Debt Service
(1) Includes other fiscal charges.
158
Tax Allocation Bonds - Shoreline Regional Park Community
Tax
Fiscal
Increment
Debt Service
Year
Revenues
Principal
Interest (1)
Coverage
2004 -05
$ 15,528
2,930
2,396
2.9
2005 -06
16,429
2,695
2,272
3.3
2006 -07
23,612
2,785
2,179
4.8
2007 -08
24,232
2,880
2,081
4.9
2008 -09
22,339
2,985
1,972
4.5
2009 -10
29,102
3,095
1,854
5.9
2010 -11
24,738
3,215
1,726
5.0
2011 -12
28,716
3,360
2,218
5.1
2012 -13
29,825
4,030
2,680
4.4
2013 -14
30,972
4,180
2,746
4.5
(1) Includes other fiscal charges.
158
Schedule 14
CITY OF MOUNTAIN VIEW, CALIFORNIA
Demographic Statistics
Last Ten Fiscal Years
(Dollars in Thousands)
Sources: Santa Clara County Office of Education.
State of California, Department of Finance.
U.S. Department of Commerce, Bureau of the Census.
Santa Clara County.
(1) Per capita personal income and unemployment rate are for Santa Clara County.
Personal income is the product of the countywide per capita amount and the City's population.
(2) Data for fiscal year 2013 -14 not available until May of 2015.
159
Population
Per Capita
Fiscal
Density
Personal
Personal
School
Unemployment
Year
Population
(Sq. Mile)
Income (1)
Income (1)
Enrollment
Rate ( %) (1)
2004 -05
72,033
6,157
$ 3,529,617
49
6,745
5.6%
2005 -06
71,995
6,153
3,671,745
51
6,700
5.5%
2006 -07
73,262
6,262
4,102,672
56
6,664
4.7%
2007 -08
73,932
6,319
4,435,920
60
6,816
6.0%
2008 -09
74,762
6,390
4,410,958
59
6,918
11.8%
2009 -10
74,066
6,330
4,147,696
56
7,211
11.3%
2010 -11
74,723
6,387
4,333,934
58
7,311
10.3%
2011 -12
75,275
6,434
4,667,050
62
7,351
8.7%
2012 -13
76,260
6,518
5,109,420
67
7,524
6.8%
2013 -14
76,781
6,562
(2)
(2)
7,535
5.4%
Sources: Santa Clara County Office of Education.
State of California, Department of Finance.
U.S. Department of Commerce, Bureau of the Census.
Santa Clara County.
(1) Per capita personal income and unemployment rate are for Santa Clara County.
Personal income is the product of the countywide per capita amount and the City's population.
(2) Data for fiscal year 2013 -14 not available until May of 2015.
159
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Schedule 15
CITY OF MOUNTAIN VIEW, CALIFORNIA
Principal Employers
Current Year and Nine Years Ago
2013 -14 2004 -05
161
Estimated
Percentage
Estimated
Percentage
Number of
of Total City
Number of
of Total City
Employer
Employees
Rank
Employment
Employees
Rank
Employment
Google Inc.
11,332
1
10.1%
3,000
1
2.5%
Symantec
3,444
2
3.1%
LinkedIn
3,000
3
2.7%
El Camino Hospital
2,630
4
2.4%
2,000
2
1.7%
Intuit Corporation
1,707
5
1.5%
1,300
3
1.1%
Microsoft Corporation
1,700
6
1.5%
600
9
0.5%
Palo Alto Medical Foundation
1,034
7
0.9%
Synopsys, Inc.
1,031
8
0.9%
1,100
4
0.9%
City of Mountain View
568
9
0.5%
Omnicell
500
10
0.5%
Johnson & Johnson Alza Corporation
1,000
5
0.9%
KPMG
900
6
0.8%
Silicon Graphics, Inc.
800
7
0.7%
Mercury Interactive
800
8
0.7%
Siemens Corporation
600
10
0.5%
Subtotal
26,946
24.1%
12,100
10.3%
Total City Daytime Population
112,000
117,000
161
Schedule 16
CITY OF MOUNTAIN VIEW, CALIFORNIA
Full-Time Equivalent City Government Employees by Function
Function
General government
Public safety:
Fire:
Firefighters and Safety Officers
Civilians
Police:
Sworn Police
Civilians
Public works
Community development
Culture and recreation:
Community Services
Library
Water
Wastewater
Solid Waste
Total
Last Ten Fiscal Years
Adopted for Fiscal Year Ended June 30,
2005 2006 2007 2008
69.15 67.65 68.00 69.25
72.00
72.00
72.00
73.00
6.85
6.85
7.85
9.10
96.00
96.00
96.00
97.00
52.10
49.60
49.50
50.50
56.91
55.87
57.87
58.07
26.00
27.00
29.00
32.00
102.75
102.00
103.75
104.50
34.75
34.00
33.75
33.75
36.81
37.07
37.07
37.27
20.65
20.93
20.93
21.18
16.03
16.03
16.03
15.63
590.00
585.00
591.75
601.25
Source: City of Mountain View
(1) Fiscal Years 2009 -10, 2010 -11 and 2011 -12 include 15.25, 25.0 and 1.0 unfunded positions, respectively.
(2) Includes the elimination of 17.5 positions with the transfer of management of the golf course to Touchstone.
162
Schedule 16
w
F
w
CITY OF MOUNTAIN VIEW, CALIFORNIA
Employees by Function
®General government ®Public safety OPublie works 0Community development ®Culture and recreation ®Water ®Wastewater OSolid Waste
Adopted for Fiscal Year Ended June 30,
2009 2010(l) 2011(l) 2012(l) 2013 2014
78.50 78.50 77.25 73.75 73.75 74.75
73.00
73.00
73.00
73.00
74.00
74.00
9.10
9.10
8.60
8.60
5.60
5.60
98.00
98.00
95.00
95.00
96.00
96.00
50.50
50.50
49.50
46.50
44.00
44.00
59.57
58.75
58.75
52.05
53.05
54.05
33.00
33.00
33.00
32.00
32.00
34.00
104.50
104.50
104.75
99.25
81.75 (2)
81.75
33.75
33.50
33.50
30.00
30.00
30.00
37.07
38.41
38.91
38.15
38.15
37.65
21.48
21.63
21.63
21.50
21.50
21.50
15.03
15.36
15.36
14.95
14.95
14.95
613.50
614.25
609.25
584.75
564.75
568.25
163
Schedule 17
CITY OF MOUNTAIN VIEW, CALIFORNIA
Operating Indicators by Function/Program
Last Ten Fiscal Years
Source: City of Mountain View
(1) Lower due to turnover in personnel resulting in reduced staffing.
(2) Fewer Traffic and Parking violations due to officer injuries in the Traffic and Parking Enforcement Units.
(3) Work on Federal Stimulus Package delayed work on street resurfacing and will be reflected in following fiscal years.
(4) Diversion of street resurfacing funds to a Federally funded streets project contributed to lower than average street
resurfacing miles.
(5) Reflects focus on other street improvements such as drain grates, sidewalks, gutters, and curbs; which
has diverted funding away from resurfacing efforts.
(6) Reflects renewed priority /focus on this activity.
(7) The City's Customer Response Management (CRM) system has significantly increased the number
of maintenance requests the Streets Operation receives from the public, including requests to fill potholes.
(8) Lower due to Library closure during remodeling /upgrades.
(9) Increase is attributable to a decrease in vacancy rates, denser housing, and a higher groundwater table
causing more infiltration into the sewer system.
(10) Includes curbside, multi - family, commercial and school recycling, yard waste, debris box recycling,
MV Recycling Center, and recyclables recovered from refuse at the SMaRT station.
164
Fiscal Year
Function /Program
2005
2006
2007
2008
Public safety:
Eire:
Eire calls for service
4,487
4,818
4,937
5,046
Primary fire inspections conducted
1,736
1,507 (1)
1,100
1,116
Environmental safety inspections conducted
1,869
1,301 (1)
1,349
1,280
Police:
Communication Center calls answered
100,388
108,358
105,582
101,426
Police calls for Service
66,039
74,799
75,864
74,563
Law violations:
Part I and Part II crimes
5,941
6,436
6,191
5,566
Physical arrests (adult and juvenile)
3,108
3,111
3,649
3,287
Traffic violations
8,244
12,245
12,249
9,384
Parking violations
5,314
5,825
5,459
6,011
Public works
Street resurfacing (miles)
9.49
6.55
7.92
10.42
Potholes repaired (square feet)
70
87
279 (6)
929 (6)
Culture and recreation:
Community Services:
Recreation class participants
8,589
9,154
9,408
9,376
Performing Arts Center performances
334
336
391
360
Library:
Volumes in Collection (thousands)
312
301
293
299
Total Volumes Borrowed (thousands)
1,367
1,437
1,405
1,320 (8)
Water
Water service connections
15,844
15,786
15,796
17,065
Water main breaks
7
4
2
8
Average daily consumption (thousands of gallons)
11,800
11,083
11,200
11,300
Wastewater
Storm drain inlets
2,486
2,635
2,640
2,664
Sewer service connections
15,053
15,786
15,796
16,000
Sewer main blockages
30
38
17
16
Average daily treatment (thousands of gallons)
8,400
9,115 (9)
9,010
8,540
Solid Waste
Refuse Landfilled (tons per year)
49,588
51,883
53,058
56,491
Recyclables Processed (tons per year) (10)
29,517
29,587
31,972
24,293
Source: City of Mountain View
(1) Lower due to turnover in personnel resulting in reduced staffing.
(2) Fewer Traffic and Parking violations due to officer injuries in the Traffic and Parking Enforcement Units.
(3) Work on Federal Stimulus Package delayed work on street resurfacing and will be reflected in following fiscal years.
(4) Diversion of street resurfacing funds to a Federally funded streets project contributed to lower than average street
resurfacing miles.
(5) Reflects focus on other street improvements such as drain grates, sidewalks, gutters, and curbs; which
has diverted funding away from resurfacing efforts.
(6) Reflects renewed priority /focus on this activity.
(7) The City's Customer Response Management (CRM) system has significantly increased the number
of maintenance requests the Streets Operation receives from the public, including requests to fill potholes.
(8) Lower due to Library closure during remodeling /upgrades.
(9) Increase is attributable to a decrease in vacancy rates, denser housing, and a higher groundwater table
causing more infiltration into the sewer system.
(10) Includes curbside, multi - family, commercial and school recycling, yard waste, debris box recycling,
MV Recycling Center, and recyclables recovered from refuse at the SMaRT station.
164
Schedule 17
Fiscal Year
2009
2010
2011
2012
2013
2014
4,916
4,710
5,033
5,141
5,196
5,526
887
1,160
1,257
965 (1)
999 (1)
957 (1)
1,744
1,895
2,000
1,626 (1)
1,593 (1)
1,851
98,865
86,763
84,313
81,820
79,662
85,175
76,328
81,027
77,854
71,758
72,318
61,525
6,122
6,214
5,075
4,548
4,465
4,384
2,991
2,898
2,538
2,346
2,706
2,320
11,672
14,772
14,245
10,789 (2)
18,908
13,411
5,716
5,969
7,296
4,755 (2)
4,120
8,235
0 (3)
5.28 (3)
3.40 (3)
1.83 (4)
1.20 (5)
1.49
867
208
342
430
1,102 (7)
821
9,772
9,542
8,595
7,604
7,020
8,558
328
331
339
348
340
399
317
318
321
333
331
337
1,569
1,688
1,722
1,799
1,747
1,685
17,458
17,277
17,433
17,497
17,636
17,781
10
1
12
6
6
8
11,009
11,000
9,868
10,350
10,520
10,475
2,664
2,664
2,664
2,767
2,776
2,776
16,959
16,944
17,099
17,149
17,373
17,377
10
11
4
4
6
5
8,120
7,903
8,090
7,860
7,608
6,980
57,466
47,976
45,491
48,332
46,894
44,878
21,425
22,828
24,291
24,703
27,635
25,876
165
Schedule 18 CITY OF MOUNTAIN VIEW, CALIFORNIA
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
Fiscal Year
2005 2006 2007 2008
Function/Program
Public safety:
Fire stations
5
5
5
5
Police stations
1
1
1
1
Police patrol units
35
38
38
38
Public works
Miles of streets
139.9
139.9
139.9
139.9
Street lights
3,572
3,572
3,579
3,757
Traffic Signals
72
73
77
78
Culture and recreation:
Community services:
City parks (2)
31
31
31
35
City parks acreage (2)
191.3
191.3
191.3
194.7
Playgrounds (2)
25
25
26
28
City trails (2)
5
5
5
5
City trails miles (2)
7.95
7.95
7.95
8.27
Roadway landscaping acreage
120.25
120.25
120.25
120.25
Regional park acreage (including trails) (2)
772
772
772
777.53
Regional park facilities:
Golf courses (18 holes)
1
1
1
1
Boathouse
1
1
1
1
Sailing lake acreage
50
50
50
50
Clubhouse and banquet facility
1
1
1
1
Historic house
1
1
1
1
Community gardens
2
2
2
2
Community centers
1
1
1
1
Senior centers
1
1
1
1
Sports centers
2
2
2
2
Performing arts centers
1
1
1
1
Swimming pools
2
2
2
2
Tennis courts
35
35
35
35
Baseball/softball diamonds
12
12
12
6 (3)
Soccer /football fields
8
8
9
14 (3)
Library:
City Libraries
1
1
1
1
Water
Miles of water mains
174
176
176
175
Fire hydrants
1,967
1,993
1,993
1,993
Storage capacity (thousands of gallons)
30,800
30,800
38,530 (4)
38,530
Wastewater
Miles of sanitary sewers
156
156
156
158
Miles of storm sewers
106
109
109
108
Number of treatment plants (5)
0
0
0
0
Treatment capacity (thousands of gallons)
15,100
15,100
15,100
15,100
Source: City of Mountain View
(1) The most recent database update removed some public parking lots that no longer
exist.
(2) Includes assets not owned by the City but maintained by the City.
(3) Numbers are from the updated Recreation Plan. Some play fields are multi -use
and may have been reported differently
in prior years. No fields have been lost or converted.
(4) The new Graham reservoir and expanded Miramonte reservoir added
capacity.
(5) The City of Mountain View owns treatment capacity in the Palo Alto Treatment Plant.
(6) The total length of the trails adjusted due to more precise GIS measurement.
(7) No longer includes the Dog Park and Charleston Park.
166
Schedule 18
Fiscal Year
2009 2010 2011 2012 2013 2014
5
5
5
5
5
5
1
1
1
1
1
1
38
38
38
38
38
38
139.9
139.9
139.2 (1)
139.2
140.2
140.2
4,117
4,117
4,117
4,117
4,117
4,117
78
80
80
80
83
83
35
35
35
37
37
39
194.7
194.7
194.7
195.7
195.7
196.35
28
28
28
30
30
30
5
5
5
5
5
5
9.02
9.02
9.02
9.35
9.35
9.26 (6)
120.25
120.25
120.25
120.25
120.25
120.25
781.79
781.79
781.79
796.63
796.63
796.13 (7)
1
1
1
1
1
1
1
1
1
1
1
1
50
50
50
50
50
50
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
1
1
1
1
1
1
2
2
2
2
2
2
35
35
35
35
35
35
6
6
6
6
6
6
14
14
14
14
14
14
1
1
1
1
1
1
179
172
172
172
176
176
1,993
1,993
2,065
2,070
2,072
2,074
38,530
38,530
38,530
38,530
38,530
38,530
159
159
159
159
158
158
108
108
108
108
108
109
0
0
0
0
0
0
15,100
15,100
15,100
15,100
15,100
15,100
167
This Page Left Intentionally Blank
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
Table of Contents
169
Page
FINANCIAL SECTION:
Independent Auditors' Report ......................................... ............................... ............................171
Management's Discussion and Analysis ......................... ............................... ............................175
Component Unit Basic Financial Statements:
Government -wide Financial Statements:
Statement of Net Position ................................... ............................... ............................184
Statement of Activities ....................................... ............................... ............................185
Fund Financial Statements:
Governmental Funds:
BalanceSheet .................................................. ............................... ............................186
Statement of Revenues, Expenditures and
Changes in Fund Balances ........................... ............................... ............................188
Reconciliation of the Net Change in Fund Balances -
Total Governmental Funds with the
Change in Net Position - Governmental Activities ...................... ............................190
Statement of Revenues, Expenditures and Changes in
Fund Balances — Budget and Actual -
Shoreline Regional Park Community Fund .............................. ............................191
Fiduciary Fund:
Statement of Fiduciary Net Position .............. ............................... ............................192
Notes to Component Unit Basic Financial Statements ............................ ............................193
Supplemental Information:
Agency Fund:
Statement of Changes in Assets and Liabilities ............................ ...............................
214
169
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& ASSOCIATES
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Mountain View Shoreline Regional Park Community
City of Mountain View, California
Report on Financial Statements
We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the Mountain View Shoreline
Regional Park Community (Shoreline Community), a component unit of the City of Mountain
View, California, as of and for the year ended June 30, 2014, and the related notes to the
financial statements, which collectively comprise the Shoreline Community's component unit
basic financial statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of the financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in 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 financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the Shoreline Community's preparation and fair presentation of the financial statements
in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the Shoreline Community's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
171
T 925.930.0902
F 925.930.0135
E maze@mazeassociates.com
w mazeassociates.com
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the Shoreline Community as of June 30, 2014, and the respective
changes in financial position and the respective budgetary comparison listed as part of the basic
financial statements for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
Emphasis of Matters
In 2011 and 2012, the state legislature enacted two laws, AB xl 26 and AB 1484, respectively, to
dissolve redevelopment agencies in California, including the Mountain View Revitalization
Authority (Authority). The City elected to serve as the Successor Agency to the former Mountain
View Revitalization Authority (Successor Agency).
The Successor Agency and Santa Clara County developed and presented a proposed dissolution
plan to the Oversight Board and the Department of Finance in an effort to complete the dissolution
process (Dissolution Package). On November 14, 2013, the DOF reviewed the Oversight Board's
approval of the Dissolution Package and approved the Oversight Board's actions and also issued a
Finding of Completion. As part of the Dissolution Package, the Successor Agency also submitted
a LRPMP. The DOF approved the LRPMP on February 7, 2014. See further discussion in Note
9D.
The emphasis of these matters does not constitute modifications to our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that
Management's Discussion and Analysis be presented to supplement the basic financial statements.
Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of
America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express
an opinion or provide any assurance.
172
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Shoreline Community's basic financial statements as a whole. The
Supplemental Information as listed in the Table of Contents is presented for purposes of additional
analysis and are not required parts of the basic financial statements.
The Supplemental Information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic financial
statements. The information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the Supplemental Information is fairly stated, in all material respects,
in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
October 15, 2014, on our consideration of the City's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant
agreements and other matters. The purpose of that report is to describe the scope of our testing
of internal control over financial reporting and compliance and the results of that testing, and not
to provide an opinion on internal control over financial reporting or on compliance. That report
is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
to* e- A, bdo L�4�
Pleasant Hill, California
October 15, 2014
173
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MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the Mountain View Shoreline Regional Park Community's (Shoreline
Community or SRPC) component unit basic financial statements presents a narrative overview
and analysis of the financial activities of the Shoreline Community for the fiscal year ended June
30, 2014. We encourage readers to consider the information presented here in conjunction with
additional information that has been furnished in the financial statements and our transmittal
letter for the City of Mountain View (City).
FINANCIAL HIGHLIGHTS
The Shoreline Community's principal revenue source is incremental property taxes which have
been volatile due to economic conditions that have resulted in fluctuation in the commercial
vacancy rate and assessed value. Property taxes have increased with the improving economy in
fiscal year 2014. However, County of Santa Clara (County) continues to process the backlog of
assessment appeals. Fiscal year 2014 financial highlights include the following:
• The financial position of the Shoreline Community remains strong as its assets exceeded its
liabilities at the close of the fiscal year ended June 30, 2014 by $93.9 million (net position).
Of this amount, $40.5 million (unrestricted net position) may be used to meet the Shoreline
Community's ongoing obligations.
• The Shoreline Community's total net position decreased by $2.3 million during the fiscal
year compared to prior fiscal year increase of $14.4 million. The significant change is
primarily due to a transfer of $13.7 million to the City, $10.4 million higher than the prior
fiscal year. The $13.7 million is primarily $8.8 million transferred for Capital Projects and
$4.3 million for the write off of assets related to the dissolution of the former Revitalization
Authority. The Shoreline Community held Notes and TABs issued by the former
Revitalization Authority and these assets were deemed unenforceable with the dissolution
of redevelopment agencies across California (see Note 9 to the financial statements).
• Shoreline Community -wide revenues of $35.5 million included program revenues, general
revenues, and interest earnings, comparable to the prior fiscal year.
• Shoreline Community -wide expenses are $25.1 million, slightly lower than the prior fiscal
year.
• Governmental fund balances decreased to $51.9 million in fiscal year 2014, a decrease of
$4.5 million from the prior fiscal year's fund balances of $56.4 million. Revenues and
expenditures were comparable to the prior fiscal year. The change from the prior fiscal
year is primarily due to the higher transfers to the City as mentioned above.
• Governmental fund revenues increased to $32.0 million in fiscal year 2014, up $1.7 million
from the prior fiscal year's revenues primarily due to an increase in property tax revenues.
Assessed values increased due to the improved economy and received the California
Consumer Price Index increase maximum of 2.0 percent. There were also changes in
175
ownership that resulted in increased assessed values. These increases were offset by the
processing of assessment appeals by the County.
• Governmental fund expenditures are $23.9 million in fiscal year 2014, up $175,000 from
the prior fiscal year's expenditures of $23.7 million.
OVERVIEW OF THE BASIC FINANCIAL STATEMENTS
This discussion and analysis are intended to serve as an introduction to the Shoreline
Community's component unit basic financial statements. The Shoreline Community's
component unit basic financial statements comprise three components: (1) government -wide
financial statements; (2) fund financial statements; and (3) notes to the financial statements.
Government -Wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad
overview of the Shoreline Community's finances in a manner similar to a private- sector
business.
The Statement of Net Position presents information on all of the Shoreline Community's assets
and liabilities, with the difference between the two reported as net position. Over time, increases
or decreases in net position may serve as a useful indicator of whether the financial position of
the Shoreline Community is improving or deteriorating.
The Statement of Activities presents information showing how the Shoreline Community's net
position changed during the most recent fiscal year. All changes in net position are reported as
soon as the underlying event giving rise to the change occurs, regardless of the timing of related
cash flows. Thus, revenues and expenses are reported in this statement for some items that will
only result in cash flows in future fiscal periods, such as expenses pertaining to earned but
unused vacation and sick leave.
Fund Financial Statements
The fund financial statements are designed to report information about groupings of related
accounts, which are used to maintain control over resources that have been segregated for
specific activities or objectives. The Shoreline Community, like other State and local
governments, uses fund accounting to ensure and demonstrate compliance with finance- related
legal requirements.
Governmental funds are used to account for essentially the same functions reported as
governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -
term inflows and outflows of spendable resources as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in determining what
financial resources are available in the near future to finance the Shoreline Community's
programs.
176
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements.
By doing so, readers may better understand the long -term impact of the government's near -term
financing decisions. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures, and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
The Shoreline Community has five individual governmental funds. Information is presented
separately in the governmental funds Balance Sheet and in the governmental funds Statement of
Revenues, Expenditures, and Changes in Fund Balances for the SRPC Special Revenue Fund,
SRPC 2001 Tax Allocation Bonds Fund, SRPC 2004 Tax Allocation Bonds Fund, SRPC 2011
Revenue Bonds Fund, and SRPC 2014 Bank Loan Fund, all of which are reported as major
funds.
The Shoreline Community adopts an annual appropriated budget for its Special Revenue Fund.
A budgetary comparison statement has been provided for this fund to demonstrate compliance
with budget.
Fiduciary funds are used to account for resources held for the benefit of parties outside the
Shoreline Community. Since the resources of these funds are not available to support the
Shoreline Community's own programs, they are not reflected in the government -wide financial
statements.
Notes to the Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government -wide and fund financial statements.
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Since fiscal year 2002, the Shoreline Community has presented its financial statements under the
reporting model required by the Governmental Accounting Standards Board (GASB) Statement
No. 34, Basic Financial Statements, and Management's Discussion and Analysis (MD &A) for
State and Local Governments. Two years of financial information is in the GASB Statement No.
34 format and a comparative analysis of government -wide data is included in this report.
177
Analvsis of Net Position
A summary of net position follows:
Statement of Net Position
(Dollars in thousands)
2014 2013
Assets:
Current and other assets $ 57,745 63,450
Capital assets 91,092 92,967
Total assets 148,837 156,417
Liabilities:
Current and other liabilities 6,707 8,157
Noncurrent liabilities 48,220 52,064
Total liabilities 54,927 60,221
Net Position:
Net investment in capital assets 53,443 51,721
Unrestricted 40,467 44,475
Total net position $ 93,910 96,196
As noted earlier, net position may serve as a useful indicator of a government's financial
position. For the Shoreline Community, assets exceeded liabilities by $93.9 million at the end of
the fiscal year. The components of net position are as follows:
• The largest portion of the Shoreline Community's net position of $53.4 million is invested
in capital assets, net of related debt, and is comparable to the prior fiscal year.
• Another significant portion of the Shoreline Community's net position of $40.5 million is
unrestricted, which may be used to meet the Shoreline Community's ongoing obligations.
The Shoreline Community's net position decreased $2.3 million for the fiscal year, which is
reflected in the decrease of unrestricted net position. This is primarily due to significant funding
of major capital projects during the fiscal year and the write off of assets associated with the
dissolution of the former Revitalization Authority.
178
Statement of Activities
A summary of the changes in net position follows:
Statement of Activities
(Dollars in thousands)
Expenses:
General government
2014
2013
Revenues:
4,409
106
Program revenues
$ 205
312
General revenues:
259
342
Taxes
30,972
29,825
Interest earnings
786
86
Capital contributions
3,507
6,375
Total revenues
35,470
36,598
Expenses:
General government
13,352
13,703
Public safety
4,409
106
Public works
1,585
1,400
Community development
259
342
Culture and recreation
2,743
7,547
Interest on long -term debt
2,714
2,741
Total expenses
25,062
25,839
Increase in net position before transfers
10,408
10,759
Transfers (net)
(12,694)
3,650
Change in net position
(2,286)
14,409
Beginning net position
96,196
81,787
Ending net position
$93.910
96.196
The major component of the Shoreline Community's fiscal year 2014 revenues is $31.0 million
from property taxes. This is an increase of $1.1 million from fiscal year 2013. The increase is as
a result of the California Consumer Price Index, changes in ownership, net of decreases in
unsecured assessed value. Capital contributions of $3.5 million are added as projects funded are
capitalized. Program revenues are $205,000 and investment earnings accounted for $786,000 of
Shoreline Community revenues.
Expenses totaled $25.1 million, comparable to the prior fiscal year of $25.8 million. The
components are $13.4 million for general government, $4.4 million for public safety, and $2.7
million for interest on long -term debt. The change in net position is a decrease of $2.3 million
179
compared to the prior fiscal year increase of $14.4 million. The difference is due to the
significant transfers for capital projects and the write off of assets related to the dissolution of the
former Revitalization Authority.
FINANCIAL ANALYSIS OF THE SHORELINE COMMUNITY'S FUNDS
As noted earlier, the Shoreline Community uses fund accounting to ensure and demonstrate
compliance with finance- related legal requirements.
The focus of the Shoreline Community's governmental funds is to provide information on near -
term inflows, outflows, and balances of resources that are available for spending. Such
information is useful in assessing the Shoreline Community's financing requirements. In
particular, unassigned fund balance may serve as a useful measure of a government's net
resources available for spending at the end of the fiscal year.
As of June 30, 2014, the Shoreline Community's funds reported combined fund balances of
$51.9 million, a decrease of $4.5 million in comparison to the prior fiscal year's fund balances of
$56.4 million. Unassigned fund balance of $48.8 million is available for spending at the
Shoreline Community's discretion, and $3.0 million is restricted.
Revenues for the fiscal year ending June 30, 2014 totaled $32.0 million, an increase of $1.7
million, or 5.8 percent, over the prior fiscal year. Expenditures totaled $23.9 million,
comparable to the prior fiscal year.
The SRPC Special Revenue Fund is the general fund for the Shoreline Community and receives
tax increment revenues on property within the Shoreline Community. The fund accounts for the
revenues and expenditures of the Shoreline Community. At the end of the fiscal year, the
unassigned fund balance is $48.8 million. As a measure of the fund's liquidity, it may be useful
to compare the unassigned fund balance to total fund expenditures. The unassigned fund balance
represents 287.8 percent of the total fund expenditures of $17.0 million.
The fund balance of the SRPC Special Revenue Fund decreased by $4.5 million during the
current fiscal year. Key factors in this decrease are as follows:
• Total revenues are $32.0 million in fiscal year 2014, an increase of $1.7 million from the
prior fiscal year. Property tax increment revenues are $31.0 million in fiscal year 2014, an
increase of $1.1 million from fiscal year 2013. The increase is due to higher assessed
values as a result of the improved economy and is described in more detail above.
• Expenditures are $17.0 million in fiscal year 2014, essentially the same as the prior fiscal
year.
• Net transfers out were $12.7 million in fiscal year 2014 compared to net transfers in of $3.7
million in the prior fiscal year. There were significant capital projects funded in the current
fiscal year and the impact of the dissolution of the former Revitalization Authority as
described above.
M
The SRPC 2001 Tax Allocation Bonds Fund accounts for resources used for the purpose of
paying the principal, interest, and related costs on the Shoreline Regional Park Community 2001
Tax Allocation Refunding Bonds as they become due, which are more fully described in Note 6
to the financial statements.
The debt was called during the current fiscal year. Debt service expenditures included $1.4
million in principal retirement, $4.5 million to call the outstanding balance of the debt and
$321,000 in interest and fiscal charges in fiscal year 2014.
The SRPC 2004 Tax Allocation Bonds Fund accounts for resources used for the purpose of
paying the principal, interest, and related costs on the Shoreline Regional Park Community 2004
Tax Allocation Refunding Bonds as they become due, which are more fully described in Note 6
to the financial statements.
The debt was called during the current fiscal year. Debt service expenditures included $1.3
million in principal retirement, $7.6 million to call the outstanding balance of the debt and
$470,000 in interest and fiscal charges in fiscal year 2014.
The SRPC 2011 Revenue Bonds Fund accounts for resources used for the purpose of paying the
principal, interest, and related costs on the Shoreline Regional Park Community 2011 Revenue
Bonds as they become due, which are more fully described in Note 6 to the financial statements.
Debt service expenditures included $1.5 million in principal retirement and $1.9 million in
interest and fiscal charges in fiscal year 2014.
The SRPC 2014 Bank Loan Fund accounts for the resources used for the purpose of paying the
principal, interest, and related costs on the Shoreline Regional Park Community 2014 Bank Loan
as they become due, which are more fully described in Note 6 to the financial statements.
The SRPC 2014 Bank Loan was used to call and retire the outstanding balances of the Shoreline
Regional Park Community 2001 and 2004 Tax Allocation Bonds, resulting in an economic gain
of $682,000. Debt service expenditures included $82,000 issuance cost.
181
CAPITAL ASSETS
A summary of capital assets follows:
Capital Assets
(Dollars in thousands)
At the end of fiscal year 2014, capital assets recorded on the Shoreline Community's financial
statements amount to $91.1 million (net of accumulated depreciation). There are additions of
$3.5 million and transfers from construction in progress of $19.4 million during fiscal year 2014.
Net depreciation of $5.4 million is provided for in fiscal year 2014. Further details on capital
assets and depreciation charges may be found in Note 5.
DEBT ADMINISTRATION
During fiscal year 2014, the Shoreline Community secured a bank loan for $12.1 million to call
the outstanding principal of the 2001 and 2004 TABs with an economic gain of $682,000.
As of June 30, 2014, the Shoreline Community has $48.2 million of outstanding long -term debt
and all debt principal payments were made as scheduled. The Shoreline Community's debt
issues are discussed in detail in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
• Property taxes for the Shoreline Community are expected to slightly decline for the
upcoming fiscal year due to a projected decrease in unsecured assessed values, the
processing of the County backlog of assessment appeals offset by the low 0.454 California
Consumer Price Index applied to secured property, and increase in property values due to
changes in ownership. However, there are fewer appeals remaining outstanding and
property values are rising due to the improved economy.
182
2014
2013
Land
$14,332
14,332
Construction in progress
9,211
25,094
Buildings
23,908
15,519
Improvements other than buildings
79,182
76,047
Machinery and equipment
1,924
1,905
Traffic signals
746
746
Streetlights
1,014
1,014
Bridges and culverts
11,317
3,456
Sidewalks, curbs, and gutters
7,421
7,421
Streets and roads
21,765
21,765
Less accumulated depreciation
(79,728)
(74,332)
Total
$91.092
92.967
At the end of fiscal year 2014, capital assets recorded on the Shoreline Community's financial
statements amount to $91.1 million (net of accumulated depreciation). There are additions of
$3.5 million and transfers from construction in progress of $19.4 million during fiscal year 2014.
Net depreciation of $5.4 million is provided for in fiscal year 2014. Further details on capital
assets and depreciation charges may be found in Note 5.
DEBT ADMINISTRATION
During fiscal year 2014, the Shoreline Community secured a bank loan for $12.1 million to call
the outstanding principal of the 2001 and 2004 TABs with an economic gain of $682,000.
As of June 30, 2014, the Shoreline Community has $48.2 million of outstanding long -term debt
and all debt principal payments were made as scheduled. The Shoreline Community's debt
issues are discussed in detail in Note 6 to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS
• Property taxes for the Shoreline Community are expected to slightly decline for the
upcoming fiscal year due to a projected decrease in unsecured assessed values, the
processing of the County backlog of assessment appeals offset by the low 0.454 California
Consumer Price Index applied to secured property, and increase in property values due to
changes in ownership. However, there are fewer appeals remaining outstanding and
property values are rising due to the improved economy.
182
These factors were considered in preparing the Shoreline Community's budget for fiscal year
2015.
REQUEST FOR INFORMATION
These financial statements are intended to provide citizens, taxpayers, investors, and creditors
with a general overview of the Shoreline Community's finances. Questions concerning any of
the information provided in this report or requests for additional financial information should be
directed to the Finance and Administrative Services Department, 500 Castro Street, P.O. Box
7540, Mountain View, California, 94039 -7540, orfinance@mounlainview.gov.
PJK /7/FIN
546- 09- 12- 14R -SRPC
183
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Statement of Net Position
June 30, 2014 (Dollars in Thousands)
Assets:
Cash and investments (Note 3)
Restricted cash and investments (Note 3)
Receivables:
Accounts (net of allowances)
Interest
Capital assets (Note 5):
Land and construction in progress
Other capital assets, net of depreciation
Total assets
Liabilities:
Accounts payable and accrued costs
Interest payable
Advances from the City of Mountain View (Note 4)
Refundable deposits
Noncurrent liabilities (Note 6):
Due within one year
Due in more than one year
Total liabilities
Net position (Note 8):
Net investment in capital assets
Unrestricted
Total net position
See accompanying notes to financial statements.
$ 46,911
10,571
13
250
23,543
67,549
148,837
2,949
817
2,938
3
4,377
43,843
54,927
53,443
40,467
$ 93,910
184
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Statement of Activities
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Functions/Programs
Expenses
Governmental activities:
(4,409)
General government
$ 13,352
Public safety
4,409
Public works
1,585
Community development
259
Culture and recreation
2,743
Interest on long -term debt
2,714
Total governmental activities
General revenues and transfers:
Property taxes
Interest earnings
Capital contributions from City
Transfers from the City of Mountain View (Note 4)
Transfers to the City of Mountain View (Note 4)
Total general revenues and transfers
Change in net position
Beginning net position
Ending net position
See accompanying notes to financial statements.
Program
Revenues
Charges for
Services
Net (Expense)
Revenue and
Changes in
Net Position
205
(13,147)
0
(4,409)
0
(1,585)
0
(259)
0
(2,743)
0
(2,714)
$ 25,062 205 (24,857)
185
30,972
786
3,507
1,046
(13,740)
22,571
(2,286)
96,196
$ 93,910
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Governmental Funds
Balance Sheet
June 30, 2014 (Dollars in Thousands)
Assets:
Cash and investments (Note 3)
Restricted cash and investments (Note 3)
Receivables:
Accounts (net of allowances)
Interest
Total assets
Liabilities and fund balances:
Liabilities:
Accounts payable and accrued costs
Refundable deposits
Advances from the
City of Mountain View (Note 4)
Total liabilities
Fund balances (Note 8):
Restricted
Unassigned
Total fund balances
Total liabilities and fund balances
0 0 0 3,002
48,835 0 0 0
48,835 0 0 3,002
$ 54,725 0 0 3,002
Amounts reported for Governmental Activities in the Statement of Net Position
are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources
and therefore are not reported in the Governmental Funds.
LONG TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported
in the Governmental Funds:
Noncurrent liabilities
Interest payable
NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
186
Shoreline
Shoreline
Shoreline
Shoreline
Regional Park
Regional Park
Regional Park
Regional Park
Community
Community
Community
Community
2001 TABS
2004 TABS
2011 Revenue Bonds
$ 46,893
0
0
0
7,569
0
0
3,002
13
0
0
0
250
0
0
0
$ 54,725
0
0
3,002
$ 2,949
0
0
0
3
0
0
0
2,938
0
0
0
5,890
0
0
0
0 0 0 3,002
48,835 0 0 0
48,835 0 0 3,002
$ 54,725 0 0 3,002
Amounts reported for Governmental Activities in the Statement of Net Position
are different from those reported in the Governmental Funds above because of the following:
CAPITAL ASSETS
Capital assets used in Governmental Activities are not current assets or financial resources
and therefore are not reported in the Governmental Funds.
LONG TERM ASSETS AND LIABILITIES
The assets and liabilities below are not due and payable in the current period and therefore are not reported
in the Governmental Funds:
Noncurrent liabilities
Interest payable
NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
186
Shoreline
Regional Park Total
Community Governmental
2014 Bank Loan Funds
18 46,911
0 10,571
0 13
0 250
18 57,745
0 2,949
0 3
0 2,938
0 5,890
18 3,020
48,835
18 51,855
18
91,092
(48,220)
(817)
$ 93,910
187
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Governmental Funds
Statement of Revenues, Expenditures and
Changes in Fund Balances
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
See accompanying notes to financial statements.
188
Shoreline
Shoreline
Shoreline
Regional Park
Regional Park
Regional Park
Community
Community
Community
2001 TABS
2004 TABS
Revenues:
Taxes
$ 30,972
0
0
Use of money and property
782
0
0
Intergovernmental revenues
20
0
0
Charges for services
125
0
0
Other
60
0
0
Total revenues
31,959
0
0
Expenditures:
Current:
General government
13,352
0
0
Public safety
112
0
0
Public works
636
0
0
Community development
254
0
0
Culture and recreation
2,598
0
0
Capital outlay
14
0
0
Debt service:
Principal repayment
0
1,355
1,330
Interest and fiscal charges
0
321
470
Total expenditures
16,966
1,676
1,800
Excess (deficiency) of revenues
over (under) expenditures
14,993
(1,676)
(1,800)
Other financing sources (uses):
Proceeds from debt issuance
0
4,475
7,560
Payment to refund bond escrow agent
0
(4,475)
(7,560)
Transfers in (Note 4)
0
1,676
1,800
Transfers (out) (Note 4)
(6,829)
0
0
Transfers from the City of Mountain View (Note 4)
1,046
0
0
Transfers to the City of Mountain View (Note 4)
(13,740)
0
0
Total other financing sources (uses)
(19,523)
1,676
1,800
Net change in fund balances
(4,530)
0
0
Beginning fund balances
53,365
0
0
Ending fund balances
$ 48,835
0
0
See accompanying notes to financial statements.
188
Shoreline
Shoreline
Regional Park
Regional Park
Total
Community
Community
Governmental
2011 Revenue Bonds
2014 Bank Loan
Funds
0
0 30,972
4
0 786
0
0 20
0
0 125
0
0 60
4
0
0
0
0
0
0
1,495
1,873
3,368
0 31,963
0 13,352
0 112
0 636
0 254
0 2,598
0 14
0 4,180
82 2,746
82 23,892
(3,364) (82) 8,071
0
0
3,353
0
0
0
3,353
(11)
3,013
3,002
100 12,135
0 (12,035)
0 6,829
0 (6,829)
0 1,046
0 (13,740)
100 (12,594)
18 (4,523)
0 56,378
18 51,855
189
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Reconciliation of the
Net Change in Fund Balances -
Total Governmental Funds with the
Change in Net Position - Governmental Activities
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of
Revenues, Expenditures and Changes in Fund Balances, which measures only changes in current assets and current
liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the
Statement of Activities, which is prepared on the full accrual basis.
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS
Amounts reported for governmental activities in the Statement of Activities
are different because of the following:
CAPITAL ASSETS TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However,
in the Statement of Activities the cost of those assets is capitalized and allocated over
their estimated useful lives and reported as depreciation expense.
Capital assets contributed by the City
The capital outlay and other capitalizable expenditures are added back to fund balance
Depreciation expense is deducted from the fund balance
LONG -TERM DEBT PROCEEDS AND PAYMENTS
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long -term liabilities in the Statement of Net Position.
Repayment of bond principal is an expenditure in the governmental funds, but
in the Statement of Net Position the repayment reduces long -term liabilities.
Proceeds from long term debt
Payment to escrow account
Repayment of debt principal is added back to fund balance
Amortization of discounts and premiums on refunding is deducted from fund balance
ACCRUAL OF NON - CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide or (require) the use of
current financial resources and therefore are not reported as revenues or expenditures in
governmental funds (net change):
Interest payable
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
190
(4,523)
3,507
14
(5,396)
(12,135)
12,035
4,180
(236)
268
$ (2,286)
1uc.1n.IIr11elikiI 1AWa,E 17 N11a lei a901 " EWER ARR'IM/]u1u1 /1►11111'1
Shoreline Regional Park Community
Statement of Revenues, Expenditures and
Changes in Fund Balances
Budget and Actual
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Total revenues
Expenditures:
Current:
General government:
City attorney
Finance and administrative services
Public safety:
Fire
Police
Public works
Community development
Culture and recreation:
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers (out)
Transfers from the City of Mountain View
Transfers to the City of Mountain View
Total other financing sources (uses)
Net change in fund balances
Beginning fund balances
Ending fund balances
See accompanying notes to financial statements.
26,935 26,940 31,959 5,019
10
Budgeted Amounts
0
148
13,005
13,361
13,352
9
Variance with
145
Original
Final
Actual Amounts
Final Budget
Revenues:
1
739
760
636
Taxes
$ 26,053
26,053
30,972
4,919
Use of money and property
779
779
782
3
Intergovernmental revenues
0
0
20
20
Charges for services
60
60
125
65
Other
43
48
60
12
Total revenues
Expenditures:
Current:
General government:
City attorney
Finance and administrative services
Public safety:
Fire
Police
Public works
Community development
Culture and recreation:
Community services
Capital outlay
Total expenditures
Excess (deficiency) of revenues
over (under) expenditures
Other financing sources (uses):
Transfers (out)
Transfers from the City of Mountain View
Transfers to the City of Mountain View
Total other financing sources (uses)
Net change in fund balances
Beginning fund balances
Ending fund balances
See accompanying notes to financial statements.
26,935 26,940 31,959 5,019
10
148
0
148
13,005
13,361
13,352
9
134
145
87
58
26
26
25
1
739
760
636
124
387
387
254
133
2,702
2,896
2,598
298
28
37
14
23
17,031
17,760
16,966
794
9,904
9,180
14,993
5,813
(6,712)
(11,187)
(6,829)
4,358
0
0
1,046
1,046
(6,223)
(10,863)
(13,740)
(2,877)
(12,935)
(22,050)
(19,523)
2,527
$ (3,031)
(12,870)
(4,530)
8,340
53,365
$ 48,835
191
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Fiduciary Fund
Statement of Fiduciary Net Position
June 30, 2014 (Dollars in Thousands)
Agency
Fund
Assets:
Cash and investments (Note 3) $ 0
Total assets
Liabilities:
Due to others
Total liabilities
See accompanying notes to financial statements.
$ 0
192
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 — SUMMARY OF SIGNIFICANT REPORTING POLICIES
The Mountain View Shoreline Regional Park Community (Shoreline Community) was
established in 1969 pursuant to the provisions of the Mountain View Shoreline Regional Park
Community Act. The purpose of the Shoreline Community is to provide for the development of
approximately 1,550 acres of bayfront lands.
The Shoreline Community is an integral part of the City of Mountain View (City). It primarily
services the City and the City's City Council serves as the governing body of the Shoreline
Community. Therefore, the financial data of the Shoreline Community has also been included as a
blended component unit within the City's comprehensive annual financial report for the fiscal year
ended June 30, 2014.
The Shoreline Community's primary source of revenue is incremental property taxes, which are
computed and allocated to the Shoreline Community as follows:
a. The assessed valuation of all property within the Shoreline Community's boundaries is
determined and "frozen" for allocation purposes on the date of adoption of the Shoreline
Community by a designation of a fiscal year assessment roll.
b. Increments in property taxes resulting from any increase in assessed values after the adoption
of the Shoreline Community are allocated to the Shoreline Community; all property taxes on
the "frozen" assessed valuation of the property are allocated to the City and other districts
receiving taxes within the Shoreline Community's boundaries.
The Shoreline Community has no power to levy or collect taxes. Any legislative property tax
reduction would lower the amount of tax revenues that would otherwise be available to pay
principal and interest on debt or loans from the City and any increase in the tax rate or assessed
valuation or any elimination of present exemptions would increase the amount of tax revenues
available for this purpose. The Shoreline Community is also authorized to finance the North
Bayshore Plan from other sources, including assistance from the City, the State and federal
governments, interest income and the issuance of Shoreline Community debt.
A. Basis of Presentation
The Shoreline Community's component unit basic financial statements are prepared in
conformity with accounting principles generally accepted in the United States of America
(U.S.A.). The Government Accounting Standards Board (GASB) is the acknowledged
standard setting body for establishing accounting and financial reporting standards
followed by governmental entities in the U.S.A.
These standards require that the financial statements described below be presented.
193
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Government -wide Statements: The Statement of Net Position and the Statement of
Activities include the financial activities of the overall Shoreline Community government,
except for fiduciary activities. Eliminations have been made to minimize the double
counting of internal activities.
The Statement of Activities presents a comparison between direct expenses and program
revenues for each function of the Shoreline Community's activities. Direct expenses are
those that are specifically associated with a program or function and, therefore, are clearly
identifiable to a particular function. Program revenues include charges paid by the
recipients of goods or services offered by the programs. Revenues that are not classified as
program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the
Shoreline Community's funds, including fiduciary funds. Separate statements for each
fund category — governmental and fiduciary are presented. The emphasis of fund financial
statements is on major individual funds, each of which is displayed in a separate column.
B. Major Funds
Major funds are defined as funds that have either assets, liabilities, revenues or
expenditures equal to ten percent of their fund -type total and five percent of the grand total.
All of the Shoreline Community's funds are major funds, except for fiduciary funds.
The Shoreline Community reports the following major governmental funds in the
accompanying financial statements as follows:
Shoreline Regional Park Community Fund (Special Revenue) — This fund receives tax
increment revenues on properties within the Shoreline Community. The fund accounts for
the revenues and expenditures of the Shoreline Community.
Shoreline Regional Park Community 2001 Tax Allocation Bonds Fund (Debt Service) —
This fund accounts for the resources used for the purpose of paying the principal, interest
and related costs on the Shoreline Regional Park Community 2001 Tax Allocation Bonds
as they become due.
Shoreline Regional Park Community 2004 Tax Allocation Bonds Fund (Debt Service) —
This fund accounts for the resources used for the purpose of paying the principal, interest
and related costs on the Shoreline Regional Park Shoreline Community 2004 Tax
Allocation Refunding Bonds as they become due.
194
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Shoreline Regional Park Community 2011 Revenue Bonds Fund (Debt Service) — This
fund accounts for the resources used for the purpose of paying the principal, interest and
related costs on the Shoreline Regional Park Shoreline Community 2011 Revenue Bonds
as they become due.
The Shoreline Regional Park Community 2014 Bank Loan Fund (Debt Service) — This
fund accounts for the resources used for the purpose of paying the principal, interest and
related costs on the Shoreline Regional Park Community 2014 Bank Loan as they become
due.
Fiduciary Fund. The Agency Fund accounts for assets held by the Shoreline Community
as an agent for educational enhancement activities.
G Basis of Accounting
The government -wide financial statements are reported using the economic resources
measurement focus and the full accrual basis of accounting. Revenues are recorded when
earned and expenses are recorded at the time liabilities are incurred, regardless of when
the related cash flows take place.
Governmental funds are reported using the current financial resources measurement focus
and the modified accrual basis of accounting. Under this method, revenues are recognized
when measurable and available. The Shoreline Community considers all revenues reported
in the governmental funds to be available if the revenues are collected within sixty days
after fiscal year -end. Expenditures are recorded when the related fund liability is incurred,
except for principal and interest on general long -term debt and claims and judgments,
which are recognized as expenditures to the extent they have matured or are expected to be
paid in the coming fiscal year. General capital asset acquisitions are reported as
expenditures in governmental funds. Proceeds of general long -term debt and acquisitions
under capital leases are reported as other financing sources.
Non - exchange transactions, in which the Shoreline Community gives or receives value
without directly receiving or giving equal value in exchange, include property taxes, grants,
entitlements and donations. On the accrual basis, revenues from property taxes are
recognized in the fiscal year for which the taxes are levied. Revenues from grants,
entitlements and donations are recognized in the fiscal year in which all eligibility
requirements have been satisfied.
Those revenues susceptible to accrual include taxes and interest.
Certain indirect costs are included in program expenses reported for individual functions
and activities.
195
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
D. Property Taxes
Santa Clara County (County) assesses properties and it bills, collects and distributes
property taxes to the Shoreline Community. The County remits the entire amount levied
and handles all delinquencies, retaining interest and penalties. Secured and unsecured
property taxes are levied on July 1 for the fiscal year.
Secured property tax is due in two installments, on November 1 and February 1, and
becomes a lien on those dates. It becomes delinquent after December 10 and April 10,
respectively. Unsecured property tax is due on July 1, and becomes delinquent on
November 14. Collection of delinquent accounts is the responsibility of the County, which
retains all penalties.
The term "unsecured" refers to taxes on personal property other than real estate, land and
buildings. These taxes are secured by liens on the property being taxed. Property tax
revenues are recognized by the Shoreline Community in the fiscal year they are assessed,
provided they become available as defined above.
E. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles (GAAP) requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
F. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position or balance sheet will sometimes
report a separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of net position
or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense /expenditure) until then.
In addition to liabilities, the statement of financial position or balance sheet will sometimes
report a separate section for deferred inflows of resources. This separate financial
statement element, deferred inflows of resources, represents an acquisition of net position
or fund balance that applies to a future period(s) and so will not be recognized as an inflow
of resources (revenue) until that time.
196
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 2 — BUDGETS AND BUDGETARY ACCOUNTING
A. Budgets and Budgetary Accounting
The Shoreline Community adopts an annual budget on or before June 30 for the ensuing
fiscal year for the Special Revenue Fund.
No annual budgets are adopted for Debt Service Funds. Repayment of the debt is
authorized by the adoption of the indenture provisions for the life of the debt.
Budget appropriations become effective each July 1. The Shoreline Community Board
may amend the budget during the fiscal year. The legal level of budgetary control has been
established at the fund and department level. Appropriations generally lapse at the end of
the fiscal year to the extent they have not been expended or encumbered.
The Special Revenue Fund's annual budget is presented on a basis consistent with the
governmental financial statements prepared in accordance with generally accepted
accounting principles.
Budgeted revenue amounts represent the original budget modified by adjustments
authorized during the fiscal year. Budgeted expenditure amounts represent original
appropriations adjusted for supplemental appropriations during the fiscal year and
reappropriated amounts for encumbrances outstanding at the end of each prior fiscal year.
The Shoreline Community Board must approve appropriation increases to departmental
budgets; however, management may transfer Board - approved budgeted amounts within
fund and departmental expenditure classifications. Judgments, settlements and accrual
entries are not subject to budgetary control and expenditures exceeding budget due to these
items do not constitute a violation of budget policy or control. Supplemental
appropriations were approved during the course of the fiscal year as needed.
B. Encumbrance Accounting
Under encumbrance accounting, purchase orders, contracts and other commitments for the
expenditure of monies are recorded in order to reserve that portion of the applicable
appropriation. Encumbrance accounting is employed as an extension of formal budgetary
integration. Encumbrances outstanding at fiscal year -end are automatically reappropriated
for inclusion in the following fiscal year's budget.
197
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 — CASH AND INVESTMENTS
A. Classification
Cash and Investments are classified in the financial statements, based on whether or not
their use is restricted under the terms of debt instruments. Investments are carried at fair
value as of June 30, 2014. Cash and investments are as follows (dollars in thousands):
Cash and investments S 46,911
Restricted cash and investments 10,571
Total Cash and investments of the Shoreline Community S 57,482
Cash and investments as of June 30, 2014 consist of the following (dollars in thousands):
City of Mountain View's Pooled Investments S 46,911
Investments:
Bond proceeds held by trustee 10,571
Total cash and investments S 57,482
The Shoreline Community's cash, except investments held by the Shoreline Community, is
included in a City -wide cash and investments pool, the details of which are presented in the
City's basic financial statements. The City's Investment Policy and the California
Government Code permit investments in the following: Securities issued by the U.S.
Government or an agency of the U.S. Government, mortgage- backed securities,
commercial paper, banker's acceptances, medium term notes issued by U.S. corporations,
mutual funds invested in U.S. Government securities, certificates of deposit, municipal
bonds issued by the City or any of its component units and the State Treasurer's investment
pool (Local Agency Investment Fund).
As of June 30, 2014, the City's portfolio was composed primarily of investments in
securities issued by the U.S. Government and its agencies, the Local Agency Investment
Fund, and bonds issued by Shoreline Community.
198
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 — CASH AND INVESTMENTS (Continued)
B. Investments Authorized by Debt Agreements
The Shoreline Community must maintain required amounts of cash and investments with
trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended
bond proceeds or are pledged as reserves to be used if the Shoreline Community fails to meet
its obligations under these debt issues. The investments of debt proceeds held by bond
trustee are governed by provisions of the debt agreements, rather than the general
provisions of the California Government Code or the City's Investment Policy. These debt
agreements do not address interest rate risk, credit risk and concentration of credit risk.
The table below identifies the investment types that are authorized for investments held by
bond trustee:
Maximum
Authorized Investment Type Maturity
U.S. Treasury Obligations
No limit
U.S. Agency Securities
No limit
Deposit Accounts, Federal Funds and
Banker's Acceptances
360 days
FDIC Insured Certificates of Deposit
No limit
Commercial Paper
270 days
Money Market Mutual Funds
No limit
State and Local Agency Bonds
No limit
Insurer approved Investment Contracts
No limit
Local Agency Investment Fund (LAIF)
No limit
199
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 — CASH AND INVESTMENTS (Continued)
G Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the
fair value of an investment. Generally, the longer the maturity of an investment, the greater
the sensitivity of its fair value to changes in market interest rates, therefore, short -term
maturities reduce the Shoreline Community's exposure to interest rate risk. Information
about the sensitivity of the fair values of the Shoreline Community's investments
(including investments held by bond trustees) to market interest rate fluctuations is
provided by the following table that shows the Shoreline Community's investments by
maturity date (dollars in thousands):
Investment Type
Held by Bond Trustee:
U.S. Agency Securities
LAIF
Cash on Hand
Total investments
Specific
Identification
Amount Maturity Date
3,000 June 25, 2015
7,569 N/A
2 N/A
S 10,571
Money market mutual funds investments are available for withdrawal on demand and as of
June 30, 2014 have an average maturity of 40 days.
D. Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. The Shoreline Community's general
Investment Policy, which is the City's policy, is to apply the prudent investor's standard in
managing the overall portfolio. This standard states that investments shall not be made for
speculation but shall be made with judgment and care which investors of prudence,
discretion and intelligence exercise considering the safety of principal as well as the
income to be earned. The actual ratings as of June 30, 2014 for all U.S. agency obligations
are Aaa as provided by Moody's Investor Service. The Local Agency Investment Fund was
not rated as of June 30, 2014.
200
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 3 — CASH AND INVESTMENTS (Continued)
E. Concentration of Credit Risk
The debt agreement for the debt issued by the Shoreline Community does not contain any
limitations on the amount that can be invested in any one issuer other than mutual funds
and external investment pools. However, the Shoreline Community is required to disclose
investments that represent a concentration of 5.0 percent or more of investments in any one
issuer other than U. S. Treasury securities, mutual funds and external investment pools.
The Shoreline Community held $3.0 million of U.S. Agency Securities as of June 30,
2014.
NOTE 4 — INTERFUND TRANSACTIONS
A. Transfers Between Funds
With Board approval, resources may be transferred from one Shoreline Community fund to
another. The purpose of the majority of transfers is to allocate resources from the fund that
receives them to the fund where they will be spent without a requirement for repayment.
Less often, a transfer may be made to open or close a fund.
Transfers between funds during the fiscal year ended June 30, 2014 are as follows (dollars
in thousands):
Major Governmental Funds:
Shoreline Regional Park Community
Debt Service:
2001 Tax Allocation Bonds
2004 Tax Allocation Bonds
2011 Revenue Bonds
Total all funds
Transfers
In Out
$ 0 6,829 (A)
1,676 0 (A)
1,800 0 (A)
3,353 0 (A)
$ 6,829 6,829
The reasons for these transfers are set forth below:
(A) To fund debt service payments.
201
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 4 — INTERFUND TRANSACTIONS (Continued)
B. Transfers Between Shoreline Community and City
The City expends funds on capital projects on behalf of the Shoreline Community which
transfers the required funds to the City prior to the commencement of the project. Any
unspent funds are returned to the Shoreline Community upon completion of the project.
During fiscal year 2014 the Shoreline Community made transfers to the City in the amount
of $13.7 million to fund debt service payments, capital projects and equipment replacement.
Transfers from the City to the Shoreline Community were $1.0 million to return interest
earnings on available capital projects balances and return unspent balances on completed
capital projects.
G Long -term Advances from the City
Improvements to the Shoreline Community have been partially funded by advances from the
City. The Shoreline Community's management believes that future property tax increment
revenues will be sufficient to repay the advances. The advances of $2.9 million from the
City are repaid at 10.0 percent in two remaining annual installments. During fiscal year
2014, a payment of $1.5 million was made.
NOTE 5 — CAPITAL ASSETS
All capital assets are valued at historical cost or estimated historical cost if actual historical cost is
not available. Contributed capital assets are valued at their estimated fair market value on the date
contributed. The Shoreline Community defines capital assets as assets with an initial individual
cost of more than $3,000 and an estimated useful life in excess of two years.
Depreciation is provided using the straight line method, which means the cost of the asset is
divided by its expected useful life in years and the result is charged to expense each fiscal year
until the asset is fully depreciated. The Shoreline Community has assigned the useful lives listed
below to capital assets.
Buildings
25 to 50 years
Improvements other than buildings
5 to 50 years
Machinery and equipment
3 to 20 years
Traffic signals
20 years
Streetlights
50 years
Bridges and culverts
60 years
Sidewalks, curbs and gutters
40 years
Streets and roads
40 years
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase is reflected in the capitalized value of the asset
constructed, net of interest earned on the invested proceeds over the same period.
202
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 5 - CAPITAL ASSETS (Continued)
A. Capital Asset Activity
Capital assets activity for the fiscal year ended June 30, 2014 is as follows (dollars in
thousands):
Governmental activities
Capital assets not being depreciated:
Land
Construction in progress
Total capital assets not being depreciated
Capital assets being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Traffic signals
Streetlights
Bridges and culverts
Sidewalks, curbs and gutters
Streets and roads
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Traffic signals
Streetlights
Bridges and culverts
Sidewalks, curbs and gutters
Streets and roads
Total accumulated depreciation
Net capital assets being depreciated
Governmental activities capital assets, net
Balance at
Balance at
June 30, 2013
Additions
Transfers
June 30, 2014
S 14,332
0
0
14,332
25,094
3,502
(19,385)
9,211
39,426
3,502
(19,385)
23,543
15,519
0
8,389
23,908
76,047
0
3,135
79,182
1,905
19
0
1,924
746
0
0
746
1,014
0
0
1,014
3,456
0
7,861
11,317
7,421
0
0
7,421
21,765
0
0
21,765
127,873
19
19,385
147,277
(5,101)
(1,265)
0
(6,366)
(50,732)
(2,998)
0
(53,730)
(1,038)
(223)
0
(1,261)
(439)
(37)
0
(476)
(468)
(20)
0
(488)
(1,520)
(123)
0
(1,643)
(3,976)
(186)
0
(4,162)
(11,058)
(544)
0
(11,602)
(74,332)
(5,396)
0
(79,728)
53,541
(5,377)
19,385
67,549
$ 92,967
(1,875)
0
91,092
203
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 5 — CAPITAL ASSETS (Continued)
B. Depreciation Allocation
Depreciation expense was charged to functions and programs based on their usage of the
related assets. The amounts allocated to each function for the fiscal year ended June 30, 2014
are as follows (dollars in thousands):
Governmental Activities:
Public works $ 949
Culture and recreation 145
Public safety 4,297
Community development 5
Total $ 5,396
NOTE 6 — NONCURRENT LIABILITIES
The Shoreline Community generally incurs long -term debt to finance projects or purchase assets
which will have useful lives equal to or greater than the related debt. The Shoreline Community's
debt issues and transactions are summarized below and discussed in detail thereafter.
A. Composition and Changes
Noncurrent liabilities activity for the fiscal year ended June 30, 2014 is as follows (dollars in
thousands):
204
Original Issue
Balance
Balance
Due Within
Amount
June 30, 2013
Additions
Retirements
June 30, 2014
One Year
2001 Tax Allocation Refunding Bonds
3.5% to 5.25 %, due 2016
$ 17,520
5,830
0
(5,830)
0
0
Less deferred amount on refunding
(2,419)
(487)
0
487
0
0
2004 Tax Allocation Refunding Bonds
2.0% to 5.0 %, due 2018
19,520
8,890
0
(8,890)
0
0
Plus deferred premium
619
251
0
(251)
0
0
2011 Revenue Bonds
2.0% to 5.75%, due 2040
39,030
37,580
0
(1,495)
36,085
1,535
2014 Bank Loan
1.65%, due 2018
12,135
0
12,135
0
12,135
2,842
Total
$ 86,405
52,064
12,135
(15,979)
48,220
4,377
204
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 — NONCURRENT LIABILITIES (Continued)
B. Description of Noncurrent Liabilities
2001 Tax Allocation Refunding Bonds Shoreline Regional Park Community - On July
24, 2001, the Shoreline Community issued $17.5 million of Tax Allocation Refunding
Bonds, 2001 Series A, to refund and retire a portion of the Shoreline Community's 1992
Tax Allocation Bonds. Principal payments were payable annually on August 1 and interest
payments semi - annually on August 1 and February 1 from property tax revenues generated
within the Shoreline Community. On April 22, 2014, the 2001 Tax Allocation Refunding
Bonds were fully refunded in the amount of $4.5 million by the 2014 Shoreline Regional
Park Community Bank Loan.
2004 Tax Allocation Refunding Bonds Shoreline Regional Park Community - On
December 16, 2003, the Shoreline Community issued $19.5 million of Tax Allocation
Refunding Bonds, 2004 Series A, to refund the Shoreline Community's 1993 Tax
Allocation Bonds. The Bonds were issued at a premium of $619,000, which was being
amortized over the remaining life of the debt issue. The refunding resulted in a $2.4
million savings in total debt service. The net present value of the savings resulted in an
economic gain of $1.9 million. Principal payments were payable annually on August 1 and
interest payments semi - annually on August 1 and February 1 from property tax revenues
generated within the Shoreline Community. On April 22, 2014, the 2004 Tax Allocation
Refunding Bonds were fully refunded in the amount of $7.6 million by the 2014 Shoreline
Regional Park Community Bank Loan.
2011 Revenue Bonds Shoreline Regional Park Community - On July 28, 2011, the
Shoreline Community issued $39.0 million of Revenue Bonds, 2011 Series A. Proceeds
from the bonds were used to call the outstanding Shoreline Community's Tax Allocation
Bonds, 1996 Series A and provide funds to acquire and construct certain capital
improvements of benefit to the Shoreline Community. The economic gain generated from
the transaction is in the form of interest rate savings earned over the life of the bonds, and
the net present value benefit amounts to $887,000. The 2011 Bonds are special obligations
of the Shoreline Community and are secured by a portion of all taxes levied upon all
taxable property within the Shoreline Community. Principal payments are payable annually
on August 1 and interest payments semi - annually on August 1 and February 1 from
property tax revenues generated within the Shoreline Community.
205
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 - NONCURRENT LIABILITIES (Continued)
2014 Shoreline Regional Park Community Loan Payable - On April 21, 2014, the
Shoreline Community obtained a bank loan in the amount of $12.1 million. Proceeds from
the loans were used to retire the outstanding Shoreline Community's 2001 Tax Allocation
Bonds, and 2004 Tax Allocation Bonds. As a result, total debt service payments were
reduced by $707,000 arriving to an economic gain (difference between the present values
of the debt service payments on the old and new debt) of $682,000. Principal payments are
payable annually on August 1 and interest payment semi - annually on August 1 and
February 1 from property tax revenues generated within the Shoreline Community. The last
principal payment is August 1, 2018.
G Debt Service Requirements
The pledge of future tax increment revenues ends upon repayment of the $74.7 million in
remaining debt service on the Shoreline Community's Bonds and Loans which is
scheduled to occur in fiscal year 2041. For fiscal year 2014 tax increment revenues
amounted to $31.0 million which represented coverage of 4.5 over the $6.9 million in debt
service.
Annual debt service requirements to maturity is as follows (dollars in thousands):
For the Fiscal
Year
Ending June 30
Principal
Interest
Total
2015
S 4,377
1,952
6,329
2016
4,623
1,884
6,507
2017
4,743
1,768
6,511
2018
3,315
1,661
4,976
2019
3,407
1,556
4,963
2020 -2024
7,385
6,386
13,771
2025 -2029
4,235
5,127
9,362
2030 -2034
5,470
3,843
9,313
2035 -2039
7,185
2,076
9,261
2040 -2041
3,480
203
3,683
Total S 48,220 26,456 74,676
D. Debt Service Requirements
In fiscal year 2014, the City called the 2001 Tax Refunding Bonds and the 2004 Tax
Allocation Refunding Bonds in the amounts of $4.5 million and $7.6 million respectively.
As of June 30, 2014, the City had no outstanding defeased debt.
206
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 6 — NONCURRENT LIABILITIES (Continued)
E. Landfill Containment
The City is responsible for managing and controlling methane gas and containment of
leachate at three former City- operated landfill sites.
In 2013 CalRecycle regulations required the City to create a reserve, in whole or
incrementally, for potential corrective actions associated with non -water release event at
the Vista Site. The City estimated this to be $1.3 million, and on June 25, 2013, the City
council approved to restrict funds for Landfill Containment in the Landfill reserve of the
Shoreline Community Fund.
NOTE 7 — RISK MANAGEMENT
The Shoreline Community is covered under the City's insurance program. The City is exposed
to various risks of loss related to torts, errors and omissions, injuries to employees or others,
unemployment and certain health care benefits of employees. The City has established various
self - insurance programs to account for and finance its uninsured risks of loss. Under the self -
insurance programs, the City retains the risk of loss up to a maximum of $1.0 million for general
liability claims, $750,000 for workers' compensation claims with statutory excess insurance and
actual costs incurred for unemployment and certain health care benefits.
For general liability claims, the City has excess liability coverage through the Authority for
California Cities Excess Liabilities ( ACCEL) to cover the risk of loss for claims in excess of
$1.0 million per incident. ACCEL is a joint powers authority of medium -sized California
municipalities which pools catastrophic general liability, automobile liability and public
officials' errors and omissions losses.
Additional information regarding the City's insurance programs can be found in the City's June
30, 2014 Comprehensive Annual Financial Report.
207
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 8 — NET POSITION AND FUND BALANCES
A. Net Position
Net position is the excess of all the Shoreline Community's assets and deferred outflows
over all its liabilities and deferred inflows, regardless of fund. Net position is divided into
three captions on the Statement of Net Position. These captions apply only to net position,
which is determined only at the Government -wide level and are described below:
Net investment in capital assets describes the portion of net position which is represented by
the current net book value of the Shoreline Community's capital assets, less the outstanding
balance of any debt issued to finance these assets.
Restricted describes the portion of net position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws or other
restrictions which the Shoreline Community cannot unilaterally alter. These principally
include debt service requirements.
Unrestricted describes the portion of net position which is not restricted as to use.
B. Fund Balances
Governmental fund balances represent the net current assets of each fund. Net current
assets generally represent a fund's cash and receivables, less its liabilities.
The Shoreline Community's fund balances are classified in accordance with Governmental
Accounting Standards Board Statement Number 54 (GASB 54), Fund Balance Reporting
and Governmental Fund Type Definitions, which requires the Shoreline Community to
classify its fund balances based on spending constraints imposed on the use of resources.
For programs with multiple funding sources, the Shoreline Community prioritizes and
expends funds in the following order: Restricted, Committed, Assigned and Unassigned.
Each category in the following hierarchy is ranked according to the degree of spending
constraint:
Nonspendables represents balances set aside to indicate items do not represent available,
spendable resources even though they are a component of assets. Fund balances required
to be maintained intact, such as Permanent Funds, and assets not expected to be converted
to cash, such as inventories and prepaids, the long -term amounts of loans and notes
receivable and land held for resale are included. However, if proceeds realized from the
sale or collection of nonspendable assets are restricted, committed or assigned, then
nonspendable amounts are required to be presented as a component of the applicable
category.
208
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 8 — NET POSITION AND FUND BALANCES (Continued)
Restricted fund balances have external restrictions imposed by creditors, grantors,
contributors, laws, regulations, or enabling legislation which requires the resources to be
used only for a specific purpose. Encumbrances and nonspendable amounts subject to
restrictions are included along with spendable resources.
Committed fund balances have constraints imposed by resolution of the Board which may
only be altered by resolution of the Board. Encumbrances and nonspendable amounts
subject to Board commitments are included along with spendable resources.
Assigned fund balances are amounts constrained by the Board's intent to be used for a
specific purpose, but are neither restricted nor committed. Intent is expressed by the Board
or its designees and may be changed at the discretion of the Board or its designees. The
Board has not delegated the authority to make assignments of fund balance. This category
includes encumbrances. This category also includes nonspendables, when it is the Board's
intent to use proceeds or collections for a specific purpose and residual fund balances, if
any, of Special Revenue, Capital Projects and Debt Service Funds which have not been
restricted or committed.
Unassigned fund balance represents residual amounts that have not been restricted,
committed or assigned. This includes the residual Shoreline Regional Park Community
fund balance and residual fund deficits, if any, of other governmental funds.
NOTE 9 — COMMITMENTS AND CONTINGENCIES
The Shoreline Community is also subject to litigation arising in the normal course of business.
In the opinion of the City Attorney there is no pending litigation which is likely to have a
material adverse effect on the financial position of the Shoreline Community.
A. Encumbrances
As of June 30, 2014 the Shoreline Community has outstanding encumbrances of $148,000.
B. Education Enhancement Reserve Joint Powers Agreement
On June 30, 2013, the Shoreline Community entered into an Education Enhancement JPA
with the School Districts effective July 1, 2013 for a period of 10 years, superseding any
prior agreements. The agreement provides for minimum annual payments commencing
with fiscal year 2014 of $1.8 million and $2.9 million to MVLAUHS and MVWSD,
respectively. Each subsequent fiscal year increases based on the growth in property tax
revenues in the preceding fiscal year. In fiscal year 2014, the Shoreline Community paid
$4.7 million in contributions and recorded them in the Education Enhancement JPA
Agency Fund.
209
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — COMMITMENTS AND CONTINGENCIES (Continued)
G Tax Revenue Sharing
Pursuant to an Agreement between the City, the Shoreline Community, and the County
dated June 22, 2005, the Shoreline Community is annually obligated to pay the County
from tax increment revenues, an amount equal to the County's total retirement tax override
levies and pass- through an additional amount of taxes that would have been allocated to the
County in the absence of the existence of the Shoreline Community. In fiscal year 2014,
$1.3 million and $1.5 million in retirement tax override levies and pass- through payments,
respectively, were paid to the County.
D. RDA Dissolution Matters
In 2011 and 2012, the state legislature enacted two laws, AB xl 26 and AB 1484,
respectively, to dissolve redevelopment agencies in California, including the Mountain View
Revitalization Authority (Authority). The City elected to serve as the Successor Agency to
the former Mountain View Revitalization Authority (Successor Agency).
In order to complete the dissolution process, the Successor Agency was charged with retiring
all remaining obligations of the Authority and disposing of the Authority's remaining real
property assets pursuant to an approved Long -Range Property Management Plan ( LRPMP).
The Successor Agency and Santa Clara County developed and presented a proposed
dissolution plan (Dissolution Package) to the Oversight Board and the Department of Finance
in an effort to complete the dissolution process. On September 20, 2013, the Oversight
Board approved the actions necessary in the Dissolution Package and on October 22, 2013,
the Successor Agency, City and Shoreline Community took actions to approve and authorize
the Dissolution Package to wind down the affairs of the former Authority and terminate the
Successor Agency. On November 14, 2013, the DOF reviewed the Oversight Board's
approval of the Dissolution Package and approved the Oversight Board's actions and also
issued a Finding of Completion. As part of the Dissolution Package, the Successor Agency
also submitted a LRPMP. The DOF approved the LRPMP on February 7, 2014.
1. Reinstatement of Certain Obligations
Three significant financial obligations were rendered unenforceable by the dissolution
law, but they could be reinstated and repaid if allowed by the Oversight Board and
approved by the DOF. Two of these obligations were assets of the Shoreline
Community, and include a registered note of $2.4 million and 2003 TABs of $2.3
million for a total of $4.7 million. The third obligation was a loan with a balance of
$1.1 million from the City to the Authority for the downtown improvements. These
three obligations totaled $5.8 million. These loans were remeasured to the State of
California Local Agency Investment Fund (LAIF) rate as required by the dissolution
legislation.
210
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
NOTE 9 — COMMITMENTS AND CONTINGENCIES (Continued)
The Dissolution Package included the City and Shoreline Community waiving
repayment of these obligations in exchange for a credit against the value of the Bryant
Street and Franklin Street properties.
In addition, there was $509,000 ($363,000 from the 2003 TABs and $146,000 from the
2003 COPs) of bond proceeds that were used towards payment of the respective debt
issues.
211
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MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Notes to Component Unit Basic Financial Statements
For the Fiscal Year Ended June 30, 2014
AGENCY FUNDS
The Education Enhancement JPA Agency Fund accounts for funds to be used by the joint
powers authority to enhance the educational and technology capacity of students in Mountain
View schools.
213
MOUNTAIN VIEW SHORELINE REGIONAL PARK COMMUNITY
Agency Fund
Statement of Changes in Assets and Liabilities
For the Fiscal Year Ended June 30, 2014 (Dollars in Thousands)
Education Enhancement JPA
Assets:
Cash and investments
Liabilities:
Due to others
Balance Balance
June 30, 2013 Additions Deductions June 30, 2014
$ 344 4,715 5,059 0
$ 344 5,058 5,402 0
214